Full text of Commercial and Financial Chronicle : September 19, 1946, Vol. 164, No. 4526

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■Vtymjrr

BUS. ADM

ESTABLISHED 1839

LIBRARY

Reg. U. S. Pat. Office

Volume 164

New

Number 4526

Price 60 Cents

York, N. Y., Thursday, September 19, 1946

Copy

Britain's

Important Changes Instituted
In German Economy
Battle of Steel'*
By PAUL EINZIG

Noting split in British Cabinet re¬
garding proposals to nationalize
I
steel industry,

compromise"
of¬

been

has

fered, whereby

B points out "a

Government

would

secure

controlling
stock

interest

leading steel
companies,

deferring

P thus

Kji:

' " complete ac-

p.»i Einzig

quisition.
LONDON, ENG.—The
ment

has,, decided

next year

govern¬

introduce

bill authorizing it to

-Vw" (Continued on page 1480)

Paper Still in Short Supply
for This Issue
Although partial settlement of
the

truck

supplies

that

paper

be available to us shortly,

may

the

indicates

strike

additional

amount

hand

press

time left no alternative but to1"
again cut the size of today's
issue.
Accordingly,
we
are
forced to eliminate Section Two,
for the second successive week,
and

materially ,redevoted

again

once

strict

department

the

to "Prospective

Security Offer¬

ings."—Editor,

State and

Vacuum Concrete
Aerovox Corp.*
Havana Litho. Co.*
'

& OHIO RR.
COMMON STOCK

Prospectus on request
c'Am: v: ■ ft'i-xAhA

w,.

Hirsch & Co.
Successors

York

New

Members

Stock

Teletype NY 1-210

BOSTON

Troy

Cleveland

Geneva

London

detailed

contents

see

SECURITIES

THE
y

Buffalo

...

Syracuse

Springfield

York Security Dealers Assn.

WILLIAM ST.,

N. Y.

Bell Teletype NY

Washington, D. C.
Scranton : Wilkes-Barre

New York

■„

HAnover 2-0080

NATIONAL BANK

1-305

Montreal

THE

Acme Aluminum
Conv.

Alloys, Inc.

New

Bond Brokerage

Preferred

*Detroit Harvester Co.

Service.
.

;/*"'

r'"

.K'f »»tv

MARKETS

Appraisal of

Conv.

BULL, HOLDEN & C°
MEMBERS NEW YORK STOCK EXCHANGE

INCORPORATED

Members N. Y. Security

14 WALL ST., NEW YORK 5.N.Y.

45 Nassau Street
Tel.

" "

REctor

2-3600

'Prospectus

Company
Dealers Ass'n.

New York 5
Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

•

,'v '•- A

Preferred
on

ira haupt & co,

request

Reynolds & Co.

Broadway, New York 5, N. Y.
:•* Telephone:
REctor. 2-8600
Teletype NY 1-635

Members New York Stock

Hardy & Co.

Members New York Stock Exchange
120

Bell

and Dealers

Members New York Stock Exchange

and

New York 4

Tel. DIgby 4-7800

Tele. NY 1-733

REctor

Exchange

other Principal Exchanges

Broadway
New York 6

111

Members New York Curb Exchange

30 Broad St.

Values

available upon request

for Banks, Brokers

Twin Coach Company

England

■
-At'

00c Conv. Preferred
j* '

•

NEW YORK

Public Service Co

Com.

*SoIar Aircraft Company

SECONDARY

Gearhart

CITY OF

Toronto

Woonsocket

New Haven

FINANCE

BROKERS

CHASE

Members

•

New

Dallas

BOND

1455.

York 5

CORPORATE

TELEPHONE-RECTOR 2-6300

Bond Department

index

■

page

PHILADELPHIA

Albany

Pittsburgh

(Representative)

For
''

1927

64 Wall Street, New

Baltimore

Chicago

INDEX

request

Bonds

SECURITIES

•*'-

/ •

INVESTMENT

Exchange

85 Broad St., New York 4, N. Y.
2-0000

•'

Established

CO.

and other Exchanges

HAnover

;

CANADIAN

R. H. Johnson & Co.

HIRSCH, LILIENTHAL &

'if.,

Analysis

■

Municipal

GULF, MOBILE

2-3100

10 Post Office Sq;

Boston 9

Hancock 3750

Tele. NY 1-2708
,

Direct Private Wire to

Boston

1454

Tradttig Markets in:

N. Y. N. Hav. Pfd. & Com.

Gen. Aviation Equip.

HENRY FORD

Alabama Mills

Higgins,lnc.*
U.S. Sugar
*With

Leading automobile executive, in commenting on

Members N. Y. Security

Ass'n

Securities

HA 8-2778
1-423

BBIiZi TELETYPE NY

wants life

and

savings ac¬
counts. He
wants
his
children
to

S Analyst is enthusiastic
!

educate

over

WOrth

Ford,

Henry

2nd

work¬
ers as "high pay," and steady em¬
ployment is a prime considera¬
eration to 10 times as many

workers

tion to 25 times as many

Rogers Peet

Common

"short hours."

wants is not tied
official scheme of govern¬
ment, the unions, management or
anyone else. It is a broad and com¬
prehensive desire. As a matter of
fact, the surveys show that the
average American worker would
prefer to work out his own prob¬
wage earner

can

Mississippi Shipping
Electric Ferries
Common

Preferred

Vanderhoef & Robinson
'

York 5

COrtlandt 7-4070

Telephone

;;

Bell

any

security in his

lem

state, or his union—provided
that he has steady work at
wages.

System Teletype NY 1-1548

way

own

employer, the

without help from

Exchange

York Curb

New

Members

31 Nassau Street, New

which the Ameri¬

The security

•
'

Stock

Common

' A. S. Campbell
Stock

Common

Common Stock

Ly.

ir. Common

stock

J.;:}

^, j.

'•-'.v"; -r-<;■>-'<? ':v'\V

However, I feel a better case can

Bell

Teletype

most

Harold H. Young

because

much

has

ago;

the intervening years
been

done

make

stronger

investments.

;r4'

York Curb Exchange

120

Mr. Young, Public

Utility Analyst for Eastman, Dil¬
lon & Co., before the Ohio Valley

York Stock Exchange

"New

lumbus,

Our

We Maintain Active Markets

"Special Situations"; ?

ABITIBI

Department
ts

maintained

for

Act

pany

placement

BULOLO

large

blocks

-n

•

' ?-AI'S •».

.;V;:V.'

STeeixeanAGompatiu
Members N. Y. Security

37 Wall
Bell

St., N. Y. 5

Dealers Assn.

Canadian Securities

general

Hanover 2-4S50

sions.

Teletypes—NY 1-1126 & 1127

Telephone BArclay 7-0100

preferred

A low

priced speculation—

Keynote
Recordings, Inc.
Manufacturer

For

the

stock

enough
of

amount

the

Currently

back

'Prospectus

25 Broad
>

New

York

power

real

assets

Macfadden

some

Publications
Common

of these

Circular

preferred stocks had twenty years
ago.

; ;

Advantage of. Original Cost
Accounting

and Other Principal Exchanges

In the interim the

•

■

;

original cost

(Continued on page 1470)

Bequest

C. E. de Willers & Co.
Members New York Security Dealers Assn.

120 Broadway, N. Y. 5, N. Y.
REctor 2-7630

Teletype NY 1-672

Banks, Brokers & Dealers

Teletype NT 1-2361

Jefferson-Travis Corp.

FEDERAL WATER
& GAS CORPORATION

Western Union Leased Line Stocks
International Ocean Telegraph Co.
Pacific & Atlantic Telegraph Co.

BOUGHT—SOLD—QUOTED

Troster, Currie & Summers

J-G White 6 Company

Exchange,

Tele. NY 1-2908.

Empire & Bay States Teleg. Co.

St., New York 4, N. Y.

HAnover 2-4771

Attractive for Retail

and

Common

bought

Request

Stock

5, N. Y.

Teletype NY 1-9BS

far

Aeronca-Luscombe-T aylorcraft

Simons, Unburn & Co.
Members

DIgby 4-7060

Southern & Atlantic Tele. Co.

around

Members New York Stock Exchange

% 1 Wall St., New York

representing no
as the holding
concerned. This sort

them

earning

"Personal Planes"

Stock

selling

Gude, Winmill & Co.

Trading Markets

in¬

Phonograph Records
Common

Of course, this left the

stock

stake

assets on
sell bonds

thing has long since become
impossible. Some common stocks
of today probably have as much

Dept.

•

Consolidated Film Ind.

Twenty

years ago, it was
popular trick for holding
companies to buy operating com¬

still

NEW YORK 6, N. Y.

115 BROADWAY

Commission, and
tightening of regula¬

PAPER

Goodbody & Co.

Members N. Y. Stock Exchange

Consolidation Coat J

the creation of the

Power

company was

NORANDA MINES

Over-the-Counter Stocks and Bonds.

5s/2000

5s/1975
iJ-^

tion by the various state commis¬

cash

GOLD DREDGING

MINNESOTA & ONTARIO

& Preferred

vv.L

Utility Holding Com¬
and its administration

by the SEC,

common

& Preferred
'

BROWN COMPANY, Common

accumulation

the

POWER & PAPER, Common

•

Public

vestment.

in JJ. S. FUNDS for

HAnover 2-9470,

Chicago, Mil., St. Paul & Pac.

passage

the

and

Exchange

NEW YORK

Assoc. Gas & Elec. Corp,
All Issue*

ing of regulation with correspond¬

Bankers
at Co¬ panies, write up the
their books, and then
Ohio, Sept. 13, 1946.

Group of the Investment
Association of
America,

BROADWAY, NEW YORK 5
Tel. REctor 2-7815

York Curb

Teletype NY 1-1140

Reverting to the comparison of
present situation with that
twenty years ago, I
wish to emphasize the strengthen¬

retrieve

Members New
64 WALL ST.

Equities

Co.

prevailing

Federal

♦Address by

V Members

..."

Operating

the

PONNELL & fO.
New

ness

years

Frank C.Masterson & Co.

levels.

Regulation Has Increased Sound¬

are

yielding 2%%

Common

at prevailing

To¬

7%.

Hotel Waldorf-Astoria

al¬

other group as to the
investment lvalue offered

any

sound

stocks

Int'f Bridge

Taylorcraft Aviation

with the rest.

be made for utilities than for

pre¬

utility equities better and

York 5

1-1843

stocks will go along

There is ing improvement in the sound¬
something in thissituation that ness of
operating company stocks.
does not make sense, especially
We have witnessed the

4 >''

WHitehall 3-1223

Telephone:

<...

Detroit

yield bases of
5y4% to 5V2%

twenty-one

7^-iT'i't!

H. G. BRUNS & CO.
20 Pine Street, New

would

day, utility

Airlines

StruthersWells

;

shares as being im¬
falling market. That
indeed be naive.. If the

utility

mune

and the going

Scranton Spring
Brook Water

brief

general market goes lower utility

was

Pennsylvania Gas Co<

•

for

as.1 invest¬

why I think many of
on the bargain counter

are

Teletype NY 1-1919
York 4,

little

ferred'

American Overseas

VV'/v

them

were

Broadway WHitehall 4-8120

Bell System

regard

why

highly

stocks

today. Obviously, I hold no

utility
on

take

explain

Utility

to 2%% and pre¬
Mich., Sept. 16, 1946.
ferred stocks return from 3!4%
to 3%%; yet, we have many util¬
ity common stocks available on
the
ten-times-earnings basis of

Club, Detroit,

ments and

their

sold

good

Mr. Ford before the Eco¬

Byrndun Corporation

time

bonds

Edward A. Pureed & Co.

New

would

earnings.
At
that
time

public

Envelope, Com.

Towmotor

*>-

ten

ated

times

branch office*

Members New York Stock Exchange
Members New York Curb Exchange

evalu¬

were

our

Laird

utility
operating
c o m p antes

bonds
nomic

was

public

rate

* Address by

NY 1-1557

Vacuum Concrete

neophyte in the investment business in 1925 one
of the first "rules of thumb" I learned was that common stocks of

only

(Continued on page 1466)
.

■

Textiles, Inc.

Sees great rural expansion. Believes these factors, plus increasing efficiency, will over¬
come labor and regulatory difficulties; Stresses dealer opportunities
for distributing the liberal-yielding, sound, common stocks—exam¬
When I

(3) healthy

ples of 'which he lists.

prime consid¬

1-1227

Bell ■ Teletype

But

ployment is a

2-4230

•

Exchange

Soya Corp.

I commercial, and domestic power usage.
;

oppor¬

steady em¬

N. Y. 5

120 Broadway,
X

Direct wire* to

depreciation policies; and (4) greatly increased future industrial,

better

Stock Exchange

Members Baltimore

outlook for utility equities, because

themselves for
tunities.

'• v *■.•; '•

St., New York 4, N. Y.

HAnover2-0700

4 By HAROLD II. YOUNG*

v 4

| of (1) liberal yields; (2) reduction of debt ratios;

have a chance

Mitchell & Company

J•

Members New York Stock

Today's Possibilities in
[ Public Utility Stocks

his own home.
He

•

Request

iw {'■*'.'T.'w"i•

New Orleans, La.- Birmingham, Ala.

earner

insurance

Bought—-Sold—-Quoted

i v

25 Broad

course,

wage

Analysis

Steiner, Rouse & Co!

American

wants to own

May, McEwen & Kaiser

;•

top of the list of what the American wage-earner
of his list—is security. By "security" he means, more than anything
steady employment—the chance to work continuously at good wages.

Mayflower Hotel

;

that well up at the

National surveys show

else,

Jonas & Naumburg

Bought—Sold—Quoted

wants—perhaps at the very top

the

Manufacturing Co.

for security through steady

wage-earner

particularly in field of more cooperation and human engineering, as well as more judicious use of
strikes. Calls for more productivity by both men and machines and denounces "feather-bedding."

Dealers Assn.
Dealers, Inc.

Bxohange Pl„ N.Y. S

v:x4;:;

increase

SECURITIES CORP.

Nat'l

desire of

Rockwell

•

inapplicable to automobile industry, and asserts any sound plan to provide stable employment must
production and lower costs. Sees need of new viewpoints by both management and labor,

KING & KING
1920

employment, points out impracticability of obtaining it by a guaranteed annual wage. Cites seasonal
demand for automobiles and decentralization of producers of parts as factors making an annual wage

Prospectus

Established,

President, Ford Motor-Company

Member New

York Security Dealers

Association

' • '

74 Trinity Place, New York 6, N. Y.
HAnover 2-2400
Teletype 1-376-377-373

37 WALL

Telephone
Private

Wires to

Buffalo—Cleveland—Detroit—Pittsburgh—St. Louis

STREET

NEW YORK 5

ESTABLISHED 1890

Tel. HAnover 2-9300

sold

quoted

Arnhold and S. Bleichroeder

INCORPORATED

>,,

Tele. NY 1-1815

INC.

30 Broad St,
WHitehall

3-9200

York

Teletype "NY

1-51

Volume

164

THE

rNumber 4526;

u''lr

•

A Look into the Future

>*tv'

1455

COMMERCIAL & FINANCIAL CHRONICLE

llCHTfDSTfll

By RAYMOND RODGERS*

AND COMPANY

INDEX

Professor of Banking, New York University

I, Professor Rodgers warns "very

Page

Articles-and News

Important Changes Instituted in German Economy
—Berbert

Bratter——•'

Haven't You Had Enough?—Harley Lutz

Today's Possibilities in Public Utility

Stocks

—Harold H. Young
f

Cover

.....

Stop Obstructing Russia—Henry Wallace
The Goal of Steady Employment—Henry Ford

;

—

Future—Raymond Rodgers
Sold?—D. W. Michener

A Look Into the

How Much Can Be

Selecting Stocks—Roger W. Babson
Settle Industrial Disputes by Peaceful, Legal Means

The New Era in
yfy'yyy

Even the atomic bomb bows to the basic

sciences, that "for

principle of the natural
equal and opposite re¬

WALL STREET, NEW YORK

Telephone: WHrtehall 4-6551

the depression are
determined
during
the
of the cycle.
Anyone. who
will
take
the

busi¬

trouble

that

their

I
might add, in
thesetdays,i at
the
peril
of
and,

—

their

things

AND

has

purchasing

put it, "out of joint."
*'

(Continued

SECURITIES

power,

When busi-

on page

J".;::X

••

•

1474)

.■

LJ. GOLDWATER & CO
Members New York Security Dealers Assn.

<;"1

ex-

39 Broadway

^ *

Address: byv Mr. Rodgers be¬
fore the
15th Annual Meeting,
Controllers Institute of America,

ample,"boom"
is followed by

Raymond

Rodgers

"bust" just so

night follows the day.
Furthermore, the intensity and
surely

ESTATE

ALL REAL

not

indeed, as Shakespeare

are

'■

world

the

When there

other

and

em¬

of the

enough of anything, except money,

ployees * and
society itself!

—1456 .:
Congressman Sabath Urges SEC to Investigate, Odd-Lot
;• Business
j————————
——1456
Potsdam On Election Day—^;
.-—————1460
^Political and Pressure Group Tactics Caused Stock Break"
——

"boom"

CERTIFICATES

see

can

the crest

are

known.

ever

around

look

greatest

cus¬

tomers,

TITLE COMPANY

"boom" phase

principles

peril

Gutt——————w——1461
Without Fear—Chester Bowles (book review)—1461
Brokers Urge Change in Margin Rules
-1496

'em!

Dept.

Obsolete Securities

largely

sim¬

are

look

Merryle Si Rukeyser
-——
——..1461
International Fund To Begin Exchange Transactions Early

for bids

cold

Cer¬
freeze

would

traders

most

are

frozen.

the pattern of

Revived, Says General Clayji-1455
NYSE Governors Defer Decision on Permissive Incorpora¬
.

action there is

social sciences

German Economy Must Be

—

every

buy

quick

action." In the

nessmen over¬

Gould-.—-.——--—-.—--.-1459
Prices—Max Winkler
1460
Treasury Policy—Dean Madden
—1460

tainly

stocks

lip if you asked
/

tion

enough

STOCKS

probable balanced bud¬
get, continuing contraction of bank deposits, firming interest rates,
and individuals' propensity to preserve past savings, r

which

London vs. New York Stock

QUICK FROZEN
Some of the

ilar

Panic—Edson B.

Bear

there

—Raymond S. Smethurst
,
1458
What Are We Using for Money?—Thomas I. Parkinson
1458
Democratic Party Bungling—Senator Taft
1458
A Stock Market Breathing Spell Ahead—G. Y. Billard—_1459

As additional deflationary elements he lists

•

—Cover >
—1454 «
V V. V
1454
—1455
-1456
1457 '

vulnerable" price structure consti-

important threat to business activity. Recalls booms follow
busts, nation's productive capacity exceeds consumption ability,
and in long run buyers control both consumption and production.

rtutes

HAnover 2-8970

New York 6, N.

Teletype NY 1-1203

Sept. 17, 1946, Hotel Commodore,
New York.

In 1947—-Camille
Tomorrow

Customers

Bank and Insurance Stocks

1478
Cover

Britain's "Battle of Steel"—Paul

Einzig

-Securities——————————————————1474
Dealer-Broker Investment Recommendations——
—1462
Canadian

(Editorial)-.—«-1458 *
From Washington Ahead of the News—Carlisle Bargeron—1457
Mutual Funds————;——————————1470
New Security Issues Calendar————
•
—1489
Financial

'■

•

Situation

•

;

Airways

Bought—Sold^-Qaoled
■fay ,v'"

" ■' '-k

i',.

Military Governor of U. S. Zone, in "Chronicle" interview, states
monetary and fiscal reform are urgently needed to provide ade-

1462

Business Man's Bookshelf-———...————————
,

Taca

Must Be
Revived, General Cloy Dedaies

Geiman Economy

Regular Features

•*

••

$>1 > -.V

-v

•' i, •'•

s ■

>"■

Prospectus on' Request

quate living standard.
an exclusive interview with the
in Berlin on Sept. 12, Lt. Gen. Lucius D.

GERMANY.—In

FRANKFURT,

"Chronicle's" correspondent

J. F. Reilly & Co., he.
Chibago

New York

Clay;■ Deputy Military Governor'
.V'.'.-V.,- ,T;
of the U. ;S. Zone, discussed the
the food we must buy for Germany.
»
economic problems of Germany
"Monetary and fiscal reform; is
as follows:
"
"A reasonable economic revival also a matter of urgency, because

■

fvNSTA'Notes——

..—

-1463

——

Observations—A. Wilfred May————————.———1457

Governments--—,—
1477 :
Reporter's Report--———————————-—1495

Gur Reporter on
Our

—1494
Public Utility Securities————————.*1459
Railroad Securities——
—
—1468
Real Estate Securities;
.————1466
Securities Salesman's Corner
•
—1472
Securities Now in Registration—-.
———
—1488
Tommorrow's Markets (Walter Whyte Says)-————1484
^
0f ooi-; • 0« »^
^ ■'
ilu.
""-l > ' - * t
' •!!
Prospective Security Offerings

——

—

—..——

York, N,
3, 1879.

Published Twice Weekly

COMMERCIAL, and
FINANCIAL CHRONICLE

Y.,

>■"'.>

Reg. U. S.

;

Park Place,

WILLIAM

;;

9578

SEIBERT, Editor & Publisher

SEIBERT, President
Business Manager

Act

March

Rates

Thursday, September 19, 1946
Thursday (general news and ad¬
issue) and every Monday (com¬
statistical issue —market quotation
records, corporation news, bank clearings,
state and city news, etc.)
:
- \ ,j • ■
Other Offices: 135 S. La Salle St., Chi¬
cago 3,
111. (Telephone: State 0613); 1
Drapers' Gardens, London, E. C., England,
t/o Edwards & Smith,
Every

vertising

plete

is therefore

Europe

with
value.

the

have

compensate

German

through drastic fiscal reform.

Laclede-Christy Clay
Products

particular question I am not

that

tUVI;/ much
UA11A'
anticipating too JLIiULlI difficulty,
although the reform,, itself, oncd
agreed upon, 'will take time ttq
tin

ting out

a new currency,

take many

Members New York

170

circles

here

on page

America,

Spain,

and Cuba, $29.50
per !.y year;
Great
Britain,
Continental
Europe (except Spain), Asia, Australia and
Africa, $31.00 per year.

Bank
$25.00

and
per

Note—On
the

rate

are

interested in, offerings

—

Public

Monthly,

the fluctuations in

Febru¬

Reentered as second-class matter
ary

25,

1942,

at the post office

TITLE COMPANY

CERTIFICATES

''J,

'«

Class A Common Stock

v'>

'fv/.',-'J

25 Broad Street, New York

Oxford Paper

N. Y. Title & Mtge. Co.
Prudence Co.

Security Dealers

Broadway

NEW YORK 4
DIgby 4-8640
Teletype NY 1-832, 834

Newburger, Loeb & Co.

Pacific Airmotive Corp.

I Members New York Stock Exchange

WHitehall 4-6330

Bell Teletype NY 1-2033

Wire

Boston

Service, Inc.

Shoes

Public National Bank &

Bought—Sold—Quoted

Trust Co.
*Prospectus

Board of Trade BIdg.

Horr,RssE@lkssim

CHICAGO 4
Harrison 2075

Established

Teletype CO 128

1914

Trinity Place, New York 6, N. Y.

Telephone'

BOwling Green 9-7^00

Teletypes:
NY 1-375 & NY 1-2751

upon

request

C. E. Unterberg & Co.
Members

Incorporated

National Radiator Co.

Assn.

York—Chicago—St. Louis
City—Los Angeles

Kansas

*Miles

Capital Stock

Direct Wire Service
New

15 Broad St, N.Y. 5

Private

*Parks Aircraft

STRAUSS BROS.
Members

York 4, N. Y.

WHitehall 3-0272—Teletype NY 1-956

Sales

Lawyers Mortgage Co.

Members New York Security Dealers Assn.

25 Broad St., New

Members New York Stock Exchange

Macfadden Pubs.

request

DUNNE & CO.

Nath. Straus-Dup.

Bond & Mtge. Guar. Co.

Lawyers Title & Guar. Co.

♦Prospectus

■? t;

Teletjrpe NY 1-8

Telephone HAnover 2-4300

Leland Elec.

at New

Susquehanna Mills

Spencer Trask & Co,
Armstrong Rubber

}

^Fidelity Electric Co.

Utility and Industrial
•

Sugar

Americaii Bantam Car

PREFERRED STOCKS

exchange, remittances for for¬
eign subscriptions and advertisements must
be made in: New York funds.

Lea Fabrics

U. S,

Record—Monthly,

Record

account of

Punta Alegre Sugar

High Grade

year.

Monthly
Earnings
$25.00 per year.

WOrth 2-0300
Teletype NY 1-84 i £

Eastern Sugar Assoc,

Publications

Quotation

Security Dealers Assn.

Haytian Corporation

the

Mexico

Other

Bell System

1462)

•

Broadway

American

(Continued

in dollars for

HfRIM/iSiloM

months."
*

States which

puU
it would

Should it involve

work out.

success

Shops

realistic for¬

eign exchange value unless Ger¬
finances are put in order

have in developing an export

would

the

Manifestly,
can

Thiokol Corp.
National Shirt

man

the German . econ¬
omy up to the agreed standard
with the utmost dispatch.
"Our ability to revive the Ger¬
man economy will depend in con¬
measure

program
a
stable monetary unit
international exchange

mark

whole to bring

siderable

export-import

without

matter of urgency

interests

the

real

TRADING MARKETS

We'll not develop

inflation here.

sessions, $26.00 per year; in Dominion of
Canada, $29.00 per year; South and Central

WILLIAM D. RIGGS,

provide the standard of living
contemplated at Potsdam. Such a
standard of living is essential to
political stability in Germany, to
the growth of democracy in Ger¬
many,. and as well to the sur¬
rounding European countries.
It

threatened with runaway

are

trade to the United

Subscriptions in United States and Pos¬

COMPANY, Publishers
New York 8, N. Y.

DANA

the

Subscription

Patent Office

REctor 2-9570 to
HERBERT D.

under

of Germany is needed so that the
country cart be self-sustaining and

The

WILLIAM B. DANA

Y''L<t

„

Y. Security Dealers

Broadway, New

Telephone
■

•

•>

Ass'n

York 6, N. Y.

BOwling Green 9-3565

Teletype NY 1-1666

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, September 19, 1940

How Mnch Can Be Sold?
By D. W. MICHENER*
Associate

on inflated
coupled with drastic postwar reduction in produc¬
tion.
With both wholesale and retail inventories now steadily in¬
creasing, he recalls 1920 price decline in face of high purchasing
power.
Irrespective of timing, he warns "the important thing is
for the driver to keep in mind that there is a turn ahead/'

ACTUAL MARKETS

purchasing

IN 250
'

ACTIVE ISSUES
*

Art Metal Const.

For

Amer. Window Glass9
Com.

Pfd.

Automatic Instrument

ti on;

Diebold Inc.

retailer

purchase. Let

been

granted. I

came

about

convinced

government

Hartford-Empire Co.*

extent

When

pur¬

This

as a result of
borrowing from the
banking
system.

from

the

commercial

con¬

into\ being. Wartime expenditures

deposits of similar

•

If this

clusion is

amount ;

come

caused

cor¬

it swill

rate

Michener

great acceleration in the

advance,

(Continued

that

the

1468)

on page

change of great importance. The
the position

of the re¬
In the first place, it greatly

tailer.

expanded the ability of the consum¬
ing public to purchase the goods

Lanova*

the

banking system, Its bonds become
the assets of the. banks, and new

can

effects

Jessop Steel

ability

expanded.

FbderaL Govetnmeri

the

borrows

<^nts0:l
*

Second World War had two major

Jack & Heintz

offer,

largely

commercial

that, before
long, the big
question £ will
b e, ■ "How

rect,

notice first

which

has

were

had

place, it reduced

chase

m t

address

by Mr. Michener

before the Smaller Stores Dinner

Meeting

the

National

Retail

Dry Goods Association, New York,

City, .Sept. 11, 1946.

;

Asphalt

Michigan Chemical
Minn. & Ontario Paper
Missouri Pac.
Old Pfd.

tv
N.Y. New Hav. & Hart.
>

On Permissive Incorporation Issue
was more

MWrtftfar.

"Sometimes

Im¬

I Think

V-

N. 0. Texas & Mexico

Exchange members extra time in which to study proposition "and
for ttis reason^ "Chronicle" welcomes additional expressions both
pro

and

con on

Democratic leadeiHfttistt that short:

selling and political motiva¬
Threafenl
Congressional investigation In absChce of SEC study of following
points in addition to Mahuses iii Odd-lot trading":
(1) Artificial
tion constituted major

corporation up to the members for who has given any thought to the
a vote. Unanimity was lacking in
question:^realizes, and ; it is im¬
the vote but it is evident that portant to the brokerage business

Tahor^Wiarton^
Tenn. Products

board members and the money and securities in¬
impelling and dustry in general that all the
so consequently
more
important Stock Exchange members clearly
understand the implications inher¬
work for it to do at this time.
The delay will give the Stock ent -in the question. It is to throw
Exchange
member'?
extra
time needed light on the matter that
"Chronicle" welcomes' addi¬
in which to study the proposition, the

Upson Corp.*
U. S. Air Conditioning
United Drill & Tool "B"

felt there

was more

however, and for this reason the tional

Vacuum Concrete

its columns

Aspinook Corp.*

the issue.

There

Jcxtron Wrnts. & Pfd.

missive

on.

are

many

In the following letter to SEC Chairman James1 J.
Caffrey, in
replying to his communication of Sept. 4 (published in the "Chronicle"

expressions both pro and

tions should

available; for further

comment

Alabama Mills*

laws; (3) violation of margin prohibitions; (4) influences front
foreign accounts.

of:;,£ept/;13^

stated

Sab at h

(Continued

anyone

on page

1487) |

jCent. States Elec., Com.

Buda Co.

*Gen. Bids.

Derby Gas & Elec. i;
New England P. S. Com.

Bowser Com. & Pfd.
Cliffs Corp.

and superficial: theory can ex¬
explana^ plain the continued hammering of
tions made of leading industrials largely
exempt
points he had from the easy reasoning of many
made in fix¬ apologists for Wall Street.
ing responsi¬
Speculative trading in securities
bility for the is a sterile economic process. No

Oxford Paper Com. & Pfd.

Com.

the

Supply Com. & Pfd.

Bought - Sold - Quoted

jPuget S'nd P. & L. Com.
*

Southeastern Corp.
Spec. Part/

Prospectus available

break:

105 West Adams St., Chicago

appreciate

make.

Teletype NY 1-672

:wv

My dear Mr, Caffrey:
Thank
you
for your prompt
answer on Sept. 4 to my telegram
of the same date.
" ;
* , =

Members N.Y* Stock Exchange end Other Principal Exchanges!
Telephone BArclay 7-0100

market

stock

Sabath

request.

Goodbody & Co.
115 Broadway, New York

I *do not believe that any simple

concethi^g

Grinnell Corp.

)

tProspectus Upon Request

that he

un¬
convinced

*Crowell-Collier Pub.

!J.

Art Metals Construction

Standard Gas Elec.

major factor; I believe that short
selling pressure is a major factor;

tive

remains,

American Gas & Pow.

Southwest Natural Gas

weeks: I believe that political mo¬
tivations and implications are a

Represent

be addressed to the

Editor; The Commercial and- Fi¬
angles td per¬ nancial Chronicle, .25 Bark Place,

incorporation,

/<■
vinced on several major possibilities. in the sustained break in
the securities markets of recent

Democrat
of
111 i no i s,

con-on.the issue. All communica¬

'Chronicle" will continue to make

of slock market break.

causes

disturbance to the national economy 10 affect November elections,
and to eliminate margin restrictions; (2) :violation of shcrt
sejlng

the

majority

Investigate Odd-Lot Business

jfcjew York Stock Exchange last

Thursday voted to defer until Nov. 7 the question of whether to
put the matter of permissive in-^

Richardson Co.

Weekly Deposit!"

issue.

The Board of Governors of the

Purolator Prod.*

Fenwick Should Use Another Method

For Our

portant work for it to do at this tiihe, Voted last Thursday to defer
until Nov. 7 question of whether to put matter of permissive incor¬
poration upyto members for a vote, i This delay will give $tock ; j

Moxie
Pfd.

NYSE Governors Defer Decision
Majority of board members, evidently feeling there

Mohawk Rubber*

the

and in the second

taken

■

Shoe*|§f;f

the amount of goods available for

n s u m e r

sold?"

Gt. Amer. Industries

Old

which

mer-

h, andi'sin gand selling of

much

District Theatres?.

l:l-, ^im.^rAtta&rjira^

the major question before our economy
produced?"
The producer got most of

years,

Old Pfd.

Mastic

five

for

Chicago R. I. & Pac.

some

almost

Cinecolor

Douglas

power

has been, "How much can be
the '? atten-

goods

Barcalo Mfg. Co.*

rir.fr. uff*

Chase National Bank ;

Director,

Mr. Michener points Out current sellers' market is Based

American Bantam Car

Research

the

Nevertheless,

points

you

wealth is produced.

tial

contribution

I remain uncon-

made, to the

general economic welfare.
the

wise

Under

legislation1 adopted

created the Federal Reserve Sys¬

tem
'

and

the

W-J-A'-v*

and

'•

Securities and Ex-

V'.Y.

,.r

Commission',

controls

.1.

".y

supervision

Circular upon

request

of trading,

banking

and credit facilities have

*Bulletin

provided

Ward & Co
EST.

*The FR Corporation
^District Theatres

1926

^Princess

Members N.Y. Security Dealers Assn.

Ilartf'ci Clll

Buff. G02i

Boe. 2100

Vogue Shops
*

shock, of

the

*J.

economy.

shock

remains

quickly felt.-

Aeronca Aircraft

U. S. Envelope

national

the

Capital Records

fluctuations

the

Citizens Utilities

Prospectus Available

against

Even

so,

can

'be

and

The

repeated

securities

Thrifty Drug Stores'

sound,

well-managed

assaults

the

flourishing,

companies,

time when every economic barom¬

FIRST COLONY CORPORATION

N. Y. 1-1286-1287-1288

ENTERPRISE PHONES '

*Loew Drug Co., Inc.

120 BROADWAY, n. Y. 5
REctor 2-8700
Direct Wires to Chicago and Phila.

Iv*Hungerford Plastics
^Stratford Pen / '

cushion

wild market

Hoving Corp.

Democratic Administrations which

change

No substan¬

Members New York Security Dealers Association
52 Wall Street
New York 5, N. Y.
Tel. HAnover 2-8080

•

■

•

Teletype NY 1-2425

•

J.K.Rice,Jr. &Co.
Established

Members
•

REctcr
Bell

1008

Security

2-4500—120

Dealers

Assn.

Broadway

System Teletype N. Y.

eter suggests a long and sustained

period

high

production,' high

earnings, high

employment,

high return

legitimate, invest-

and

1-714

(Continued

on page

1465)v:

1457

THE COMMERCIAL & FINANCIAL CHRONICLE

.
164 " ' Number 4526
I Volume

First California and
SAN

Ahead

of the News

;By A. WILFRED MAY;

lack of*
discipline among public officials that marked Roosevelt regime,:
thus making for "mobocracy" in government.;-Commerce Departv.ment Secretary seen as tool of left-wing element which is desperate/ ly trying to retain prestige acquiredunder FDR.
Net effect of
policy advocated by Wallace would be destruction of Democratic
party and extinction of his fellow-thinkers;::;?/;;v;■../ y- ,
policy speech demonstrates continuance of

Wallace's foreign

atti
that

tude,
the

wards

Roose¬

:,The question

Z. Z v

first place,, .then, we had been and still were, in
a status, that could be legitimately termed "peace"

—so-the

whether there was
going to be another war. Now, oh the other hand,
we.are "in a* twilight "phoney•' zone, making the
question climactic, that is/ which alternative way
we
are
actually going—toward war or toward
real peace.
From here on we cannot remain

velt

policy

u n a

ated

racy

ernment

o v

e m oc-

about

wise,

the

same

hordes

the

Employes is to

brought into

continue

prevail.

Govern-

our

igae h t

/. era -

ployes, eyen
the

those

low lie

ranks,

Carlisle

came

Bargeron

to be undisci-

utterly free to have

plined and

over

„

another

■

and

concern s,

war.

selecting issues of ■ industries
destroyed , by

urges

hear much

which are pretty much the standard.

average *—

This

early

381

was

in 1929; it
to

since
has

fell

1932;
it

then

gradually
back

crawled

(with a break
1937)
to

in";
a

212

high in

May,;/: 1946.
then

Since /'

there has been
a

decline,

that the aver¬

today

age

•

The

is
:

about 181.
Roger W. Babson

Dow

cyclical trend of the market
is indicated when there is con¬
firmation in the individual price
the

and the

group

Such

stocks.

John

Parkinson,

will become

Leonard

limited

Jr.,

■

who are all allegedly agitating to blitzkrieg Moscow.
people
cannot have
a
unified, realistic na¬

American

the

publicans, or Democrats!

Leavitt,

died

participation in the last War—wc still don't know which ele¬
ment motivated us into fighting Germany. Now the extent of our con¬
fusion from our ideological professions is sensationally demonstrated
our

•

Lake

(Continued

1485)

on page

Direct Private Wire

NY 1-2613

WHitehall 4-2422
Branch

113 Hudson St.,

Office

Jersey City, N. J.;

Consol. Pap. Corp.,
Donnacona

■

Ltd. of Can.

Paper Co., Ltd.

International Paper & Pr.,
Minnesota & Ontario

Ltd,"

Paper Co.:

Co., Ltd.

St. Lawrence Corp.,

Ltd.

St. Lawrence P. Mills Co.,

HAnover 2-0980

52 WILLIAM ST., N. Y. 5
•

1-395

Bell Teletype NY

Toronto

.Montreal

New York

Ltd.

CO.'

SMITH &

HART

Curb and Urilisled

Securities

;:
\ <■

MICHAEL HEANEY, Mgr.

York Curb Exchange

.Chicago Stock Exchange

COAST

Chicago

St. Louis

Kansas City

•

* New York 6

39 Broadway

Teletype NY 1-1610

Digby 4-3122
•

Joseph McManus & Co.

Service

Los Angolas

*•

'■{

STRAUSS BROS.

*«/■>"-.

Jonas & Naumburg

Broadway

Pfd.

DIgby 4-8640 5
Teletype NY 1-832-834

S/S

$2.40 Conv. Preferred

CHICAGO 4
,

Com.

■

;

* Harrison 2075. Z
Teletype CG 129

^Universal Winding Co. Com.
'

* Prospectus

ST. LOUIS

T. I. FEIBLEMAN & CO.

Bo. 9-4432

;

BeU Tel.—NY-1-493

/•.(-.:/

{

■

Bell

Dravo Corp.*

Bought

—

Sold

—

Quoted

Prospectus on request

Quotations Upon Request

FARR &

Preferred

PETER BARKEN

Established 1888
MEMBERS

New York 4, N. Y.
Tele. NY 1-2500

CORP.

Common

American Beverage

N. Y.

REctor 2-8600
Teletype: NY 1-635

HAYTIAN

American Maize Prod. Co.

Common

Baker Raulang

Tel. WHitehall 4-6430

York

•

Preferred

32 Broadway,

New

Broadway, New York 3,

120

Telephone:

Nap Pak

request

Reynolds Stock Exchange
& Co.

Members

LOS ANGELES

New Orleans 12, La.
Carondelet Bid*.

•

Baum, Bernhelmar Co.
KANSAS CITY

Plodger & Company, Inc.

Members New Orleans Stock Exchange

41 Broad St.

Inc. Com. & "A"

^Raytheon Manufacturing Co.

Board of Trade Bldg.

NEW YORK 4

Mills Corp.

Fruit &

Standard

*Air Products,

Members New York Security Dealers Ass'n

: v./j'. ; ■

FREDERIC H. HATCH A CO., INC.

'Teletype

P., Ltd.

Brown Company

Members New

COAST- TO

Securities

New York 5, N. Y.

Co., Ltd.

WALTER KANE, Asst. Mgr.

Dealers

Telephone

Abitibi Pr. & Paper

British Columbia P. &

that what happens in

62 William St.

Stocks and Bonds

the entire world, now

Sulphur
• :

Investment

with Cooley &

Pulp & Paper

all of a sudden, when confronted by a
performs as Isolationist Number One, contending
Europe is none of our business, and that the
two hemispheres should remain aloof from " each other.
Now when
Stalin, and not Hitler, is the problem; Mr. Wallace and our left-wing
group have changed their minds about this being "One-World"—and
instead plead for compartmentalized spheres of influence (a wholly
all in

Pfd.

'•.v

Mining Issues

now

Galveston Houston
•,

Preferred

Brokers

George

the New York Stock Exchange.

Russian menace, he

New York

American Insulator

MAHER& HULSEBOSCH

—

by Secretary Wallace. Fresh from having been an arch-intervention¬
ist and international humanitarian, pleading to give a quart of milk to

(Continued on page 1480)

Domestic

are

Price Bros. &

example, if England is discussing the Spanish question, it is quite
obvious and openly acknowledged that the root of her concern is
territorial protection in the strategically , important Mediterranean
—ndt an .ideological choice between'Fascism and'Communism. The
American habit of confusing ideology and politics was epitomized in

ahead, between now and
World War III, much less atten¬
tion will be given to these or any

San

f- Z

CONN.

Co., 100 Pearl Street, members of

For

the

My own opinion is that in

Canadian

ley, Jr.,

years

New York 4, N. Y.

Hartford,

;

Chronicle)

Financial

Baine, Jr., and William J. Hass-

groups

Philippine

Another element of confusion is introduced in the situation by
the American unique interjection of ideology into political affairs.
v

Whits & Company

B. Keiffer, New York,

The

May

place/ when

taken

have

partner in Paine, Webber, Jackson & Curtis, died on Sept. 12.

change of trend is

HARTFORD,

whether

general partner, ef¬

partner in Beer & Company,
on Sept. 7.
-- ./ Russell

(Special

actually

would

break through an
earlier fairly recent top or bottom
of the group's averages./"/;^/;W.'':
both

Hutchins & Parkinson,

fective Oct. 1.

,V.

the
industrial
railroad group of

Lane Cotton

•

partner in

—

Two Join Cooley Staff

r
/

said

has announced the following firm

changes: •

movements

Com.

Exchange

The New York Stock

Jefferson

^Weekly Firm Changes
•

This

called.

these

New York Stock Exchange

"Dow Theory" sothat a change in

lievers in the

Theory

watching

investors are be¬

averages, many

"averages"—especially the

stock market

about

Dow-Jones Industrial Averages

addition

field
industrial and

and possibly to ' bet

—

tional conception of what the actual situation arhong the so-called
United Nations is, then we are all lost---be we liberals, "pinks," Re¬

and that could , not be readily

using little labor
M

A. Wilfred

it will be shifted from one

Notes switching from rails to certain

Merchandising
:

guess

First California -Co.

military conflict. Then our forecasts and
thinking were done in-an atmosphere of aloof¬
ness; based on the expectation that at least the

the newspapers

lead to

frequent stunt for these young¬ left Acting Secretary of State Clayton in self-ascribed bewilderment
sters, when he started to tell a over what the nation's policy really is. According to Messrs. Wallace
(Continued on page 1478)
and Pepper and their segment of the community, there would be no
thought of war in the world were it not for British and American
"Interventionists," wicked Imperialists, pro-Nazi reactionaries, and

volume of investment will continue,
-

Hitler's: dramatic/ machinations

the Government as
his
own
family.

By ROGER W. BABSON
.

another.

icans

had

Asserting slock market "averages" are becoming obsolete, Mr.
sv,
Babson holds we are now facing a selective market, and though
to

are.

the"second-place, the question is far more
important now than it was in the 1930's. Then it
was likely to be rather an indoor sport for Amer¬

command: .over
those whom he

Selecting Stocks

will

Kelly, Chairman of the

of the

board

United States would not become embroiled again.
There
are
many
who attended
family; 'dipners
atthe
White ;fvAnd the calculations of the 1930's of course oc¬
House who were downright curred in the absence of the completely devastating atom.
shocked ' at' the lack of ; respect
The answer to the question whither we are progressing, and
Which- his, youngsters, now mostly by what forces we are driven, is needed to cut short our growing in¬
all
making ' money
by writing ternal political dissensions—as evidenced by Secretary Wallace's and
about him, gave him. • It was a Senator' Pepper's pronouncements of last week, whose aftermath

n~;

Roosevelt

der

did

•* - •
"
Roosevelt

was

and to express

up,

this

among

came

policies.

these

1 ter-

that

sun

merely

query

static where

question' under the

every

Earl Lee

to what we are headed for in the international
Situation, is far different than it wa§ before World War I. In the

to have accomplished Under Truman
City speech on our foreign policy and his subse'
~
~
~~
~
their own individual policies to¬

" *

CALIF.-

Co.

Co., under the name of the latter,

From Phoney-Peace—to Peace or War?

What Henry Wallace seems

q u e n t

according to an announcement by

with his New York

Douglass

merged with the First California

Where Do We Go From Here?

CARLISLE BARGERON

FRANCISCO,

Nelson

Wall

Street, New

SECURITY DEALERS ASSOCIATION

York 5, N. Y.^

-Bell Teletype NY 1-897

New

120

CO.

York Stock Exchange
York Cuib Exch. Assoc. Member
York Coffee & Sugar Exchange

Members

New

WALL ST.,

NEW YORK
2-9614

TEL. HANOVER

THE COMMERCIAL & FINANCIAL CHRONICLE

1458
'■diii'lui

Thursday, September 19, 1946

Settle Industrial Disputes

What Are We

by Peaceful, Legal Means

Counsel, NAM

labor

Pointing out

precedented

your
credit."
If a represen-,

this

induced by gov-

that have just

Regardless of its merits, furore created by Wallace

re¬
f

and

serious

wasteful
strikes. *

Each

sit¬

the

time

uation seemed

to get worse.
-No

can

one

when
public pa-

g u ess
the

will

tience

R. S. Smethurst

reach
the
.breaking

Whatever

;

republican form
-

opinion that new

of the

or procedures are
sable to the peaceful

ery

[

machin¬
indispen¬

tions

7, 1946.

MD. —Joseph

Dagenais, Jr.* is resuming the
investment business from offices
will

deal

curities.

Street. He

in over-the-counter

se¬

the
has been serving

Mr.

Dagenais

direct interest whatever.

obvious that
no

our

States

like,
the

for

past four years
in the U. S. Army.

This

;

are

Again

;-,

our

vitation to

very

logical

been

elected. to

the

direct American interests—and but for the fact

ened any
we

insisted

Pittsburgh

would

ever

injecting ourselves into the regions and

have occurred.

(Continued

Exchange.

side of the globe,

To say that we were at war
on page

1484)

: ^-.-v- *3

Arden Farms

Tennessee

Company ;

Town

Hall

Club

Luncheon, Sept.

All

electio'n'of
John

Products

Properties

—

SOLD

—

QUOTED

request

Bricker

Shirt

publican president. It is a cam¬
paign to put the United • States

Senate

back

and Tom Her-

bert

Eight

years

ago

the main track of Amer¬

national and
International, from the deceptive
sidetrack of diversion, delay and

Ohio.

progress,' both

ican

Governor

destruction/ This year we propose

elect

Robert A. Taft

Senate

House

and

aigned
Representatives with a Repub¬
together when ;"
" //X/XXX4 lican Majority to prevent a fur¬
Republican fortunes were at their ther advance toward the danger¬
camp

ebb.

lowest

that

With

others

the

1938 ticket, we succeeded

starting

Ohio
Since

its

then,

Republican
with

many

including those on this
state
ticket,
we
have
worked together every two years;
and built up, I hope, a stronger,
more
unified and harmonious,—
others,

by Senator Taft
Republican State Con¬

ous

chasm of bankruptcy and dic¬

tatorship,
gram
can

pro¬

Truman

President

disapprove at his

approve

pe^il.

formulate

and

which

In 1949 we intend to put

that program

into effect.

(Continued

on page

1482)

address

before the

vention, Columbus, Ohio, Septem¬
ber 11, 1946.

Coady and Woerner
Willi Win. E. Pollock
Edward Coady has become asso¬

the sales department

ciated with

Shop

Dealers Ass'n

Tel.

brokerage service

Tel. Capitol 8950

York

Mr. Coady

City.

was

and

Mr.

Woerner

with Discount Corp. of

was

New York.

Banks and Dealers

With Bond, Inc.
(Special to The Financial
60

Wall Street, New

York 5

HARTFORD,

Tele. BS 169

Telephone: WHitehall 3*7830

Teletype: NY 1-583
Established

Co., Inc., 20 Pine Street,

New

Hutzler

Securities for

27 State St., Boston 9

DIgby 4-1388

Woerner

previously with Salomon Bros. &

H. D. KNOX & CO.
Broadway, N. T. 4

the

Pol¬

Charles

lock

V V

Members N.Y. Security

in all Unlisted

with

and

Tele. NT 1-86
••

the

United

Montague Rod & Reel

New York Hanseatic Corporation
7-5660

...

the

N. Y. & Rich. Gas

v.:

BROADWAY, NEW YORK 5, N. Y.

XX'"

the United States

over

States

We render

Analysis

— Republican¬
other state in the

trading department of Wm. E.

National

BOUGHT

friendly

Republicans are opening not only
the campaign of 1946 to elect a
Republican
Congress,
but, /the
campaign of 1948 to elect a Re¬

I possibly can
to, assist »the

•

ism than any
Union. VX;XX

National Press Bldg.

Campbell Co., Inc.

B A relay

by Mr. Parkinson to f
Men's Board of Trade;

Young

and

that

campaign and
do everything

Common & Preferred

Telephone:

American Vitrified Products

Washington

120

1476)

Introduction

Common & Preferred

And

on page

Republicans of Ohio, I am greatly honored by your in-:
make the keynote speech at the opening of this campaign

*An

Richmond Cedar Works

A. S.

Government.

social welfare.

pleas¬

part

the March

the Japanese, with all of their brutal

reason,

real

ure

behavior

strutting, had not prior to Pearl Harbor in any way threat¬

194-3.

of
a

everywhere

moralizations about world affairs

well

Fellow

issues of their misbehaviour on the other

Stock

the

Party Bungling

there is little likelihood that the attack on Pearl Harbor year's

have/

except

Holds campaign issue is "Freedom against Totalitarian Government."

PITTSBURGH, PA.—Michael N.
has

check

> * Address

prise,

Pittsburgh Exch. Member
Jr.,

them

T- !• Parkinson

course.

Miller,

money

industry and private enter-2'

was

With public statements
which could apply only to situations far from our borders
and far from any of our direct interests.
Apart from the
Philippines, which another war and one of our imperialistic
impulses of the past had brought under our wing, and a few
scattered islands which flew the American flag without any

that

membership

paper

accounts,-which

around

(Continued

the savings of the
past and drawing on the earnings

impression whatever upon the remainder of
were inclined to withdraw from the European

informed ^observers

at 74 West Washington

future taxing power of the United

spendt hrift

think of the Wallace-Byrnes con¬

shift

bank

nothing behind

some¬

thing
that,

son.

are

answer

must be

•\ ;;i#.°ii\any event President Roosevelt even before war broke
out again in Europe was disturbing the peace of mind of

Joseph H. Dagenais, Jr.
Resuming Invest. Business
HAGERSTOWN,

was

the world) we

Smethurst

/may

theatre, although as much can not be said

Annual Meeting of
5 of ' Bar
Associa¬
Western *New LYork,
—

one

in the Pacific.

Federation

Jamestown, N. Y., Sept.

have

had made

1472)

on page

20th

before
•the

including broad

address by Mr.

*An

our

those

think

irredeemable

and

genera-.,

tion,

notably true
of the World War I era in Europe, and has in one degree or
another been true in Asia for a much longer period of time.
For a time after the people of this country turned definitely
and very decisively from the League of Nations idea (when

settlement

\
\.
.
visualize such a court as
the
exclusive
tribunal 4 for re¬
solving questions of legal rights
and liabilities of labor and man¬
agement. Others see such a court
as
a
board of arbitration to re¬

•j -f';. (Continued

our

That

like;

question

what

you,

check, making transfers to others.

should

ask

Some

solve all issues,

ask

should

;

disputes.

generation

come

growing support
for creation of a Federal Labor
Court, having jurisdiction to set¬
tle specified or even all types of
labor disputes. ■* Establishment of
arbitration or mediation boards,
labor tribunals, fact-finding com¬
missions—all constitute variations
Today, there is

you using for money, you would
have to say that you are using a
few silver coins, a great deal of

irredeemable paper, and bank ac¬
counts
on
which you
draw ..by

Democratic

fair, effective
with a capitalistic

government.

hard-working, thrifty

10, 1946.
.
;
<
>
rise to it, there are certain of the future.
indisputable facts which the American people will ignore
or
neglect at their own risk. These truths should, indeed
they must, have dispassionate consideration free from par¬
tisan politics if the United States is to steer a safe course
By hon. robert a. taft*
through the troubled seas which now rage around us. It is
U. S. Senator from Ohio
•;
not he who dares raise questions or to speak of the politic¬
Republican Party spokesman attacks both foreign and domestic
ally unmentionables of the day who evinces lack of patriot¬
policies of Administration.
Says Administration has failed in its
ism, but he who either does not take the trouble to under¬
!
foreign polity and scores continuous appeasement of Russia. Points
stand what is going on or else regards silence the better
out failure to restore a stable economy and to reduce expenditures
part of political valor.
Claims Administration's concern about inflation is
First of all, we must not permit ourselves to blink the [ and taxes.
;
hypocritical, and scores lavish distribution of American funds
fact that for a J quarter century and more we have b^en
abroad.
Asserts Republicans will abolish war controls and agrimuch inclined to inject ourselves into situations in which
cultural subsidies, and will encourage

American Bar to
;in developing

and our

system

govern-;

troversy or the issues which gave

remedies which are
and in harmony

the

up our

burning

point, or foretell what new rem¬
edy it may seize upon.
,<
Never was the time more ap¬

propriate for the
take
leadership

foreign policy

continuing predilection for meddling in situa¬
tions outside our concern, a policy that was directly responsible
for our becoming embroiled in the recent war and in previous mili- 1
tary ventures.
Tendency to point finger at Russia beclouds mili-tancy of our own acts and policies abroad, which can only be
justified on doubtful assumption that preservation of British Em¬
pire is essential to our own defense.
U. S. role in current European
political squabbles that of amateur moralist, while Britain aggres- r j
sively fights to keep her far-flung possessions and commonwealths.
speech points

currence

}
I.

the

passed and of

would

prevent

generations

or pro¬

cedure

':4

once

tative

that

policy

un-

cut in

urges

said to his ne'er-do-well but spending son, who
replied:
"My wits and
<§>

that

believe

accounts

behind them, Mr. Parkinson

power

"What do you use for money?" I'm told a

parent

public was

and bank

money

"f government spending, and lightening of banks' holdings of
:, ment bonds.

ernment to

paper

For such achievement he

supply.

money

the

irredeemable

declares it vital to all groups in community to reduce current

by peaceful, legal process?"
Too many times during the war,

our

have only government's taxing

settled*-

disputes be

President, The Equitable Life Assurance Society

;

been reduced to a pre¬
States mere creation of
modernization of anti¬
quated rules of law to recognize public's stake in industrial picture. Advocates legal safeguarding of
individual workers' rights against unions, compulsion on both labor and management to refrain from
,violence, and protection of consumers against monopolistic unions.
labor abuses, stating collective bargaining has recently
tense, because of gross inequalities imposed by National Labor Relations Act.
government machinery, in any form, cannot effectively settle disputes.
Urges

Mr. Smethurst points to

"Can

Using For Money?

'j.By,thomas i. Parkinson*

By RAYMOND S. SMETHURST*

1926

M. Mitchell is with

Pearl Street.

Chronicle)

CONN.

—

Albert

Bond, Inc., 49
.

^^4l«.Wi2wiwfe-1

,'$f- "i V< );i ^;••

""'

■?;»(5rr'v'»V vo
164
Number 4526 /.;

Volume

t>;'if f%. ,f :\ yi y^

•V

* ?-v*y.-7 • V t f A A,'r

^ y

„

THE COMMERCIAL & FINANCIAL CHRONICLE

power house on
hanna River
which
new

A Stock Market

larged in future
mines

^77;-77V'i

By g. y. billard

does

;v7-$

Partner, J. R. Williston & Co.

„

nearby,

Sees investment buying ahead and 5
exist to effect advantageous tax-saving [
and improve security position.

larger dividend payments.

The

company's operations

are

well diversified both

construction

$500 original cost in 1932,
The company's financial
has

ture
and

to charac¬

the

current

ter

transactions

electricity

these

of eastern

been

struc¬

improved

greatly

ture may

week.

•

Little

waves

something less than highly emo¬

news

available

was

tional conditions.

77:71 "\

the

Ebbing Liquidation

selling
of

evidence

further

mands

post-Labor Day session, the DowJones Industrials dropped about

lack
deci¬

general
of

In the initial break in the first

de¬

and

any

picture

.,,

wage

increase

of the present state
of affairs may be seen by looking
at the market in retrospect.
> •;
A

than

10 points on dealings involving
approximately 2,900,000 shares; in
the next slump, prices dropped the
equivalent of about 8 points on

sive Adminis¬

tration

policy
dealing ef¬
fectively with
for

come

automatic

re¬

brought about by exhaus¬
tion of offerings and the appear¬
covery

prices

will

recovery

carry

calculation- but

-J is1 beyond

it; will

at. least

breathing spell that will
permit reasoned liquidation under
bring

": \

Principal Question
•••4i

, *

>*2

;

,..

v/4-

*>'• v-j'n?

area

con¬

rural

decentralization—the dis¬
of
industrial
units
* v f -»'

^v-

anthracite

the

over

coal

one-third of indus¬

industry in¬
strip pro¬
the area served by
covers some 85% of

revenues,

many

ducers,

and

the

low-cost

the company
the total national
trie 'sales

than

Elec4

reserves.

the mines

stable

■

the

much

are

coal

indus¬

try itself, since power is needed
for pumping
water even when
the mines are idle.
;: Lancaster
is the
farming county in
States, and also has

second: best
the 'United
Substantial

small industrial

units.

whether

number

lurch during; recent months rep-

(Continued

on page

Penn.

1475)

panic in a thin market, Mr. Gould contends such recessions are |
usually of short duration and do not indicate major business de- ;

pression.
Sees cause for unbalance in present inflated costs rela-,
tive to selling prices and looks for further extension of decline witib7
i

•

;7.

•'

' '

has been much casting about for

There

■* ;

reasons

' 1 ■», ' ->»

t t

for the recent

A number of causes have contributed, but
probably
happened was

decline in the market.
1

sudden

v u

in 1931.'\
The

the

L'.

the

form

with

cooperates

company

munities

and

tive

adverse

eign
e n c

United

for¬

was

office,

;

(Special

The

Reeb

has

Chronicle)

ILL.

become

—

James

Financial

CHICAGO,

affiliated

Gould

4$
*.
range ' outlook

plants will be replaced by

business

new

but

Building,'

COMMONS

Derby Gas & Electric

Birmingham Electric

Iowa Southern Utilities

Black Hills Power & Light

Missouri Utilities

Carolina Power &

Central Illinois Elec. & Gas

*Pub. Serv. 0^ New Hampshire
Republic Natural Gas *
-

*Central Maine Power

Southwestern Public Service

Light

....

pre¬

te^rifory.

This is not only helpful in gain¬

ing

the Coffin

'^Arkansas-Missouri Power

PREFERREDS
Green Mountain Power $6

complies which might , be in¬

terested, im entering this

huge

New
■*X

Pr. Assoc. $2 & 6%

•

* Prospectus

Available to Dealers and Bankers only

improves

G. A. Saxton & Co., Inc.

public relations. I;/;

70 Pine

Kingdom 4s, 1960-90

7'777//7'7 -i.'//'-/777:7\77.

■'*•

Bought —Sold

-—

^; (v

fears,

doubt,
over

nearer

The

Street/New York 5, N. Y.
■< : ,:

WHitehall 4-4970

Teletype NV 1-609

England Public Service Pfds.

Portland Electric Power 6s* 1950
^

7'-'

;;-V

v.u

;

•

Portland Electric Power Prior Pfd.

Quoted

Goodbody & Co.

favor¬

developments.
that
developed,

on a very

term

selling

coming
sulted

Members N. Y. Stock

Gilbert J. Postley & Co.

Exchange and Other Principal Exchanges?
NEW YORK 6, N. Y.

H5 BROADWAY

Teletype NY 1-672

Telephone B A relay 7-0100

39 BROADWAT, NEW YORK 6. N. Y.
ki'Direct Wire to Chicago

■/■•/,

thin market re¬
market panic
itself.

stock

that has been feeding upon

There may be a little point in at¬
tempting to apply logic or reason
in the midst of a panic which is

essentially emotional and psycho¬

logical,
observe

soning

sionally

but
that

state

the

interesting

Federal Water & Gas Common

CORPORATE BONDS

that

Public Service of Indiana Common

LOCAL STOCKS

panicky unrea¬

of mind

Delaware Power & Light Common

STATE AND MUNICIPAL BONDS

$ i

Puget Sound Power & Light Common

occa¬

overwhelms the market

BOUGHT

♦Mr. Gould is

Smith, Barney
Co., but the views and opinions

expressed by him are his own and
jtot

necessarily1 those of the 'firrri.
(Continued

—

SOLD

—

member of the

Research Staff of

on page

The Robinson-Humphrey
Established
RHODES-HAVERTY

BLDG.
'

QUOTED

Company

1894

ATLANTA

GEORGIA

Teletype AT 288

Long Distance

1462)

Northeastern Water $2 & $4
! United Public UtiL $2.75 & $3

j /

able,, ho,n g
for* busihess4 by
and uncertainties

with

companies, thereby obtain- Mason. Moran & Co., 135 South
ing substantial economies La Salle Street. • V
^
•
through the different timing of
peak loads. The company has a
Morns Hochman Opens i
substantial building program and
NEW BEDFORD, MASS.—Mor¬
some $85,000,000 plant will be re¬
placed by1 1950. Some seven or ris Hochmanv is engaging in the
eight; of
the
seventeen > older securities business from offices in

hopes based
B.

South

135

overwh elm
Edson

their

Reeb with Mason, Moran

New

domestic
news

them

BRITISH SECURITIES

of
and

and uno uraging

Force, has become

with

Salle Street.,

company

paring literature for distribution

lators.

effect

Chicago

that Janies
Captain

other

com^

regional units,

cumula¬

The

recently

Air

largest

part

p e c u

associated

forms part of a
huge "superpower" system and it
interchanges power with many

upon

investors

•

announces

Brophy,

the

small-city distribution which is
naturally more expensive than for
densely
populated
areas.
The
present rates compares with 7Y4C

re-

o n

attitude

for the large amount of rural and

what

CHICAGO, ILL.—First of Mich¬
igan Corp.

high compared with the U. S. av¬
erage, allowance must be made

the company acquired dur¬
ing the year ending last August
121 new industrial units, contrib¬
uting about $460,000 direct rev¬
enues and $260,000
indirect. The

By EDSON GOULD*

•

Brophy with First Mich.

/.While the average revenue per
residential KWH, 4.4c, seems fairly

section of the industry. Reflecting
the
"growth" character of this

Ascribing recent market decline to emotional and psychological 7

struc¬

The cement companies served by

,7'i year-end rise.

mileage

increased from

tion

area,

debt

the smaller cities.

cludes

•'

1923

the

11,800. With the excep¬
of a small unit serving 50
;
customers, there is no REA com¬ on the common stock.
Some" 37% of electric revenues' petition in the company's terri¬ v;yUnder • Pennsylvania ■ laws, and
are
regulations,
residential, 17% commercial, tory. The rural program is being present • commission
pushed
to
completion; Pennsylvania P". & L, is allowed
38% industrial and 8% miscel¬ rapidly
laneous. There are over 3,600 in¬ Load building literature is dis¬
4
(Continued on page 1484) •
to
farmers,
many
of
dustrial customers and only three tributed
whom use substantial amounts of
contribute over $500,000 a year to
the company's revenues. Among power to operate farm appliances.
tribution

among

Since

lines has

write-offs

still appear a little topheavy—63% debt, 22% preferred
and
15%
common
equity—but
these, ratios should automatically
improve as the common equity is
built up. Amortization items in the
income account (largely Account
100.5) amount to $1.04 per share

1,400 to

trial

Bear Panic
-

ten

The company furnishes

areas.

of rural

tributed

principal
question is
the
sharp
downward

The

.»

Thus the

communities.

industry,
using some $6,569,000 worth of
electricity per annum; steel mills,
using about $2,512,000; silk mills,
$1,160,000, and cement producers
with $495,000.
While coal con¬

reached, and finally
broad forward move¬

ment.

growing investment de¬
mand. How far or how long such
ance

were

ending in

industries served.

the heaviest industry contributors

there will

and the

forms to the latest industrial pol¬

are

2,830,000 shares; and in
•the
following
crack,
prices
either present
dropped about 5 points on an ex¬
or prospective
Gordon Y. Billard
panded volume
of dealings of
-domestic
re- ".v•
yy.-yvv,
conversion troubles. The bulk of around 3,300,000 shares. The last
however,
was
promptly
the selling clearly reflected a fear break,
followed in the next session by a
psychology and was of sufficiently
broad nature to encompass vir¬ recovery of approximately equal
•
'
' ■
tually the entire list, with the re¬ proportions.
In other words, each succeeding
sult that many situations appear
liquidating
wave
produced de¬
to have been fairly oversold on
the basis of any normal yardstick clines of lesser proportions, in¬
dicating a gradually expanding
of value.
demand
as
progressively lower
Following such a severe relapse,
sales

area

icy.; of

to account for

other

of the

to a large proportion^
The company now serves some
Pennsylvania, contain¬
ing no very big "cities but some 35,000 farms and has pioneered
25 with a population of over 10,- in developing rural business,
on^000, and more than 700 smaller quarter of all customers being in

of heavy and concentrated liquidation falling
thin markets caused further extensive damage during the past
Recurring

unit

plant account has been writ¬
down substantially.
Due to

holds many opportunities

en¬

Since coal

costs, only $400 per KWH will be
invested in plants compared with

The President of Pennsylvania Power & Light on Sept. 10 gave
interesting luncheon talk, illustrated by pictures," maps and tables,
before the New York Society of Security Analysts.- The following
summary is largely based on the data presented in this talk.

expansion of industrial production which points to higher earnings
and

can

years.

have

not

heavier

■""fPennsylvania Power & Light

Analyst, in calling attention to ebbing liquidation in stock market,
contends that a reexamination of outlook indicates further moderate

are

the Susquq-

the company
freight rate
problem which many; other com¬
panies
face.
By
1950
despite

Breathing Spell Ahead.
-

?• ?

4459

108

.Paine, Webber, Jackson & tens
ESTABLISHED

1879

« >

THE COMMERCIAL & FINANCIAL CHRONICLE

1460

BALTIMORE

Smith, Moore & Co. Adds
(Special to The Financial 'Chronicle)

ST.

Bay way Terminal
Monumental

Fuller,

Jr.
&

Moore

Radio

Emerson Drug

with
Olive

Street,

Louis

St.

Exchange.

Common

Election Day

Smith,

509

the

London Versus
New York Stock Prices

now

is
Co,,

members

Potsdam On

MO.—William

LOUIS,

Stock

Special to the "Chronicle"

•'

Blitzed city,
C. A. Reed
Class

Noxzema Chemical

•v

ert

Baltimore Stock

Members New York &

Exchanges and other leading exchanges

joined the staff of Rob¬

liams has

Company,'203

Schweser.

South 19th Street.

CALVERT ST., BALTIMORE 2

6 S.

midst electioneering
elicits

the Great and Sans Souci.

OMAHA, NEB.—Frank E. Wil¬

STEIN BROS. & BOYCE

Economist holds

market, being restricted, does not condependable guide to Britishers' appraisal of international
political outlook.
In fact the quotation of London equities at' a

sharp discount

GERMANY, Sept.
15—(By wireless)—This city was
the capital of whimsical Frederick
the Great, a royal retreat Sans
POTSDAM,

New York

Telephone REctor 2-3327

are

national

Berlin, Potsdam was made a
Nazi government seat.
Potsdam

American Air Filter
'

Turf

American

Consider

Ass'n

Murphy Chair Company

y' \

{ yX

•»

»'

> •

Floor, Kentucky Home Life Bldf.

1st

Purolator

"Descriptive Analysis

Watch

Gruen
.

Company

"RED."

■■■■'?;;,*

'IJCi

■'

du Pont,
;

Homsey Co.

31 MILK STREET

New

■

New York

•

Curp Exchange
Street, Philadelphia 2
\

Los Angeles

•

Hagerstown, Md.1
Telephone—WHitehall 3-7253

Pittsburgh, Pa.

9, MASS.

Teletype BS 424

Telephone CAnal 6-8100

N. Y.

waves

flag in a land which
a flag.
I saw a

Nu-Enamel

posters

making

that

anil

SED

at every voting place

(Continued

' | ;

Telephone Liberty 8617

PHILADELPHIA

Stock Exchange

Teletype BS 373

Established

New England Markets

1898

BROKERS

OFFICE

•"/:/j '

;

Stock Exchange Building

Teletype

interest

Phone 8-8172

Teletype SU 67

New

England Coverage
e

Southern Advance

•

Bank

and

Bag &

fis¬

then endeavor to broaden the cf edit

new

—;

For Immediate
or

•

Insurance

bulletin

Read

Stocks

The

Money Mar¬
T.

Securities

Execution of Orders

Exchange

A.M.,

American Wringer Co. J

Pac.

from 10:45 to 11:30
Std. Time: Sp-82 at

other hours.

Members Boston Stock Exchange
77 Franklin Street, Boston

Liberty

10, Mass.

2340

Providence

the

Springfield

■

Common

stocks

STANDARD SECURITIES
CORPORATION

Private

Phone

Brokers

PH 30
N. Y. C.

7-1202

Members Standard Stock Exchange

Philadelphia 3

PEnnypacker 5-8200
COrtlandt

cal

Southern

INCORPORATED

We invite offerings

Textile Securities

•

Underwriters

Building, Spokane

Peyton
■r

Spokane

Dealers

Branches at

Kellogg, Idaho and Yakima, Wn.

UTICA. N.Y.

Oneida Ltd.

AND

Cotton Mills, Inc.

Properties

Iowa Municipal

INQUIRIES INVITED

A. M. LAW & COMPANY

INVESTING COMPANY

1892)
,

EQUITABLE

Bell Tele. DM 184

fact

all

of the Treasury has
considerable change;
money

rates

are

that the declihe
in long-term interest
rates has
come to an
end, a proper under¬
standing of the money market is
now
of greater importance than
before. Moreover, the credit policy
of
the
monetary; authorities is
bound to undergo further changes
and

adapt itself to prevailing
conditions. Obviously,

busi¬
in

SPARTANBURG, S. C.
L. D.61

Teletype SPEC J7

238 Genesee

St., Utica 2, N. Y.

Tel. 4-3195-6-7

Tele. UT 16

not

;

overlooked

equipped with
commercial

and

central

commonly called a managedsystem. This, generally
speaking, implies an effort of the
government to influence business
activity; and the movement of
cbmmodity prices through credit
and fiscal policies.
Hence, the stu¬

currency

dent of the money market must

not

only consider the forces of supply
and demand

operating in the money
capital, markets,
but
also
must ascertain what policies the
monetary authorities might adopt.
and

is, of course/easier to evaluate
of demand and supply

the forces

period of inflation when commod¬
ity prices are rising rapidly, it is
the duty. of. the monetary author¬
ities to prevent the use of bank
credit for unsound or speculative

than

purposes. Since the volume both
of currency in circulation and of

ever,

bank

credit

other

purposes,-

deposits, is exceedingly large
result of

war

financing, it is

incumbent upon the monetary au¬
thorities

anticipate the policies of the
authorities, , which are
subject to constant changes and
monetary

hand,

when

business

under

of the Treasury. How¬

business

analyzing

needs,

these

activity, and the use of
for
speculative or

conclusions
The

definite

certain
be

can

reached.

run

the
their

The

other

the

inflationary

the

course

and

activity and commodity

Great

Power

of Our

Monetary Authorities

bank

forces have

influence

often

needs

everything within

the volume
deposits created through
the acquisition of government se¬
of

the

are

the

their power to reduce

curities by the banks. On the

INC.

must

market,

banking systems operate on what

short-term

.•

money

countries

modern

University.

MOHAWK VALLEY
(Established

BUILDING
MOINES 9, IOWA

Preferred

Common

Utica & Mohawk

Bonds

policy

power

studying the

that

Madden

ness

SPARTANBURG

WHEELOCK & CUMMINS

DES

J. T.

of the fact that the fis¬

undergone

DES MOINES

Phone 4-7159

stiffening,

BOENNING & CO.
1606 Walnut St.,

In view,

the
Dean

Finance of New York

that

So. Colorado Power Co.
v

F. L. PUTNAM & CO.. INC.

Portland

•'

Di¬

of
institute
,

deposits

new

rapid changes.

ket," issued by

Quotes call TWX Sp-43 on Floor

......

Industrials—Utilities

Tel.

that constitute
in the hands of
their owners. It is evident, there¬
fore, that the money market is
subject to constant and, at times
ing

York

John

of bank credit, thus creat-*

use

"purchasing

entitled "How

International

Inactive

the

according

era,

and stimulate

base of the country

credit—policy

Paper Co.

and

beginning
a

Madden,

NORTHWEST MINING

■

Secondary Distributions

tfnlversity.

prices begin to decline, the policy

Dean

WASH.

SECURITIES
Retail

pf the monetary authorities will
again Undergo, a change. The Re¬
serve authorities will undoubtedly

marked

New

Salt Lake City, Utah

"PH 73

current

(Continued on page 1477)

primarily

rector

have

confix

sterling,

reversal in funda- *'
4 mental credit policy. Cites Reserve authorities' deflationary moves
in tightening nioney niarket -and curtailing bank deposits; Antici¬
pates a return"flow' of^^ currency, accom
by an inflow of gold/
which will cause rapid increase In reserve ratio. '
* «

Members Salt Lake Stock Exchange y

f SPOKANE.
We

Dean Madden notes Administration's postwar

cal

Bldg. Phila. 2

Telephone

By DEAN JOHN T. MADDEN

the

STOCKS

Company

RIttenhouse 6-3717

had
future

the

has;

W.H. CHILD, INC.

Corp.

m ia r k e t

Director of Institute of lnternatioiial Finance, N. Y.

held

Company
r

Square, Boston 9, Mass.

investor

the

dence

The end of "the war, with the consequent reduction in the gov¬
ernment deficit and the Treasury policy of redeeming its obligations

DEALERS

UTAH MINING

M. J. Whittall Assoc. 2nd Pfd.

10 P. O.

by the banks,

Eastern Utilities Assoc. Conv.

ieneral Stock & Bond

international

SALT LAKE CITY

Sterling Motor Truck

H. M. Byllesby &

r e.v e a

The New Era in Tieasury Policy

tyie

1496)

on page

Empire So. Gas

Warner

the

liberal

So. Colorado Power

U. S. Sugar Corp.

latter rate which is the true rate.

Careful examination

;red Ink, urging vote J * for

use

BROKERS and

Boston Sand & Gravel

prob¬

lems.

TRADING MARKETS

share, equivalent to about $133. In
the New York market, the shares

Max Winkler.

Private Wire System between
Philadelphia, New York and Los Angeles

the London market at £ 33 per

Dr.

informed in regard 16 world

On all-sides one could see

election

'/•>' H

are

thej^

BOSTON

HANcock 8200

corre¬

longer boasts

flags.
•

York

Walnut

1420

Member

•Also

promean

ing the town under four crimson

Los Angeles Stock Exchanges

the

mar-

whicht

ket

the

S. E.-D. electioneering truck tour¬

and

Philadelphia

York,

The

;

BUCKLEY BROTHERS
New

substantially below the London
price, computed on thes basis of
the
prevailing
official rate of
about $4.02 Vz per pound. To il¬
lustrate: Royal Dutch is .quoted

firm-

v e

that

one-colored

Request <•

t i

ness

remembered

sponding prices in New York

rather sub¬

Inquiries invited
Members

Sept. 15 was election day

Germany.
They
are
hounced "SED" but they

Memos

They justify,

London

zone.

American Pulley

■'

and

U. S. S. R.

contend
aye ; quoted
$99 - $105., On ^ie
"Everywhere, mingled with i§ Ubuiidant proof that" the appre¬ basis of the bid price .of 99, the
sterling at
songs in Russian, were posters and hension oil th^ part of the Amer|4: buyer is purchasing
banners urging the people to vote can public over the international $3 instead of the $4.02 V2 which is
for. S. E. D. These are the initials situation is not shared by the the "official, rate. In. other yvord$J
for ; the
Socialist Unity
Party British who are admittedly better it is the former;- rather; than tfie

request

town.

Electric Co.

District

Empire

the

sequence, over

the

—

apprehensive over the
situation, and, as a con¬
the ability of Great
Britain to maintain the stability
of her exchange. While London
quotations have risen, r it should

foreign

ac¬

ing to -the rel-

could be overlooked by no one in

Bell Tele. LS I86

PHILADELPHIA

Products

w o

equities actually
British in¬

vestor

stantiate, their

That

LOUISVILLE 2, KENTUCKY
Long Distance 238-9

of British

affords proof that the

view by point¬

Potsdam is in the Russian

or,

strewn

everywhere in Potsdam
today.;. flies a bloodred flag, for

Incorporated

'v:V

action

Big Four;

and along

cars

Overhead

I2l BANKERS BOND ^

the

dis¬

streets, and roads, and; parks.

its

V'"

and

tanks

about Potsdam's squares

Silt Co.lii®
i r

heart

wrecked

Dwight Mfg.
*i

its

Winn & Lovett Grocery

curately, be-,
tween the Big

physically and otherwise with
broken.
The windmill,
which Frederick couldn't still, our
fliers stopped and it no longer
exists. The blood is gone from the

Willett

Corporation

Girdler

Boston Wharf

among

BOSTON

cord

ten¬

and

was

analysts, bewildered by the severe decline in prices,
inclined, to minimise the effect upon the market of the inter¬

city of historic palaces and
churches, a cultural center of reknown. But when the blitz came

LOUISVILLE

Securities

sion

it.

willed

New York indicates their distract of the inter¬

I J.1

Potsdam

Souci

Teletype BA <303

national situation.

lies

Bell

London

stitute

poignant memories of Frederick

Chronicle)"

to The Financial

(Special

By DR. MAX 'WINKLER

for Socialist Unity Party,

With Robert Schweser Co.

Common

Thursday, September 19, 1946

;

monetary

authorities, i.e.,

Federal

Resqrve System and
Treasury, - have very great

powers

over

the

(Continued

money

on page

market.

1480)

.Volume 164

THE COMMERCIAL A FINANCIAL CHRONICLE

Number 4526

currencies

^Political and Pressure Group
Transactions

Tactics Caused Stock Breo

;

having

Countries

quotas aggregating $5,720,000,000,
the Fund will be in a position to
begin, exchange operations, prob¬
ably early in 1047.
The Fund
will sell to a member for its own
currency, Or for. gold, the foreign
exchange in needs to make pay¬
ments for imports and other cur¬

foreign

The

transactions.

rent

exchange sold by the Fund for a
currency
will be re¬
purchased by the member, under
specified conditions.
In this way
tjie Fund will help members" to
maintain stable and orderly ex¬
change arrangements.
member's

$CHENLEY DISTILLERS CORPORATION
NOTE—From tithe to time, in this space,
there will
appear an advertisement which
we hope will be of interest to our fellow

Americans.This is number 142 of a series.
!

SCHENLEY DISTILLERS CORP.

"Fellowship"
;

By MARK MERIT

] At the

University

of Wisconsin

there have been established

a num¬

ber of post-doctorate research fel¬

lowships for the study of factors
affecting the production of anti-j
biotics and their action

human,'

animal and plant diseases. These *

fellowships have been established;
by Schenley Distillers Corporationj
and Schenley Laboratories, Inc., j
thru their

affiliate, The Schenley,
Institute.

Research

just

you

don't happen to know what an
antibiotic is, please be informed
that it is
a

substance

produced by

living organism which will

bat

the

development; of

com?

„

other

orggpiisms antagonistic to man and
the plants and animals useful to
him*. Penicillin and Streptomycin
aire

antibiotics.

doubtedly be

There

many

will

un¬

others in yeaTs

to come.

:
-

•These new fellowships at the Uni¬

versity

Of. Wisconsin haVe been'

established for

three-year period

ahd Will be assigned by the Uni¬

versity to' the departments of
Agriculture, ; Bacteriology,« Biq-,/

chemistry, Plant Pathology, Veteri¬
nary

Science and Botany at Madi¬
Fellows'- will

son, Wisconsin* The

appointed by the University

the basis of proved ability in their

fields. The total of grants, includ- *

ing -allowances

for working ex? *
will be approximately
$110,000* Though the field and ;
scope of the program have been
arfanged by discussion between;
the University faculties and Dr;i
E: C. Williams, Vice President and y
penses,

Director of Research

of^ the Cpr--i

poration, the Fellowships are

granted without conditions of any J*
This advertisement is not, and is under n6 circumstances "t6 he construed as, an
the following securities for sale or a&a solicitation of an offer to buy any
such securities. The offering is made only'by the Prospectus. '

NEW ISSUE

offering of
of
"

the sole discretion of the University. > 'f
•,

lit addition to

expanding funda-/-

mental scientific knowledge in the

kind and will be administered under\

field, it is also the wish of the,
sponsors to enable the University)

300,000 Shares

to retain the services

of first-class

oration
:

Here'g another sign that Ameri¬
industry, under our system of
free enterprise, is conscious of its
opportunities to serve the Ameri¬
can people—Who make its existence
possible. ..-V
;
can

(Par Value SI Per Share)

Price $3
per

stare

FREE—

Coons, Milton Admits.
SAN

FRANCISCO,

CALIF.—

96-Page Book
Copies of the Prospectus

may

be obtained from the undersigned

Coons, Milton & Co., 232 Mont¬

have admitted
td limited

Elder, Wheeler
•

•

*■

forftierly a general partner hi the

firm, is now: a limited partner.

;

•

'-j

•

•.

•

••

Members New York Stock

partnership) Mr. Nelson
CdonS,

coupon

MARK MERIT OF SCHENLEY

hhs been With the firm for some

Robert B.

Mail

subjects.

Joseph A* Nelson

time as Cashieiv

containing reprints of
articles on various

earlier

gomery Street, members of the
San Frantisco Stbck Exchange,

mSTILLERS

18*4,

350.

Y. 1,

lExchdhge

'4I^Broa1)wAy;;New Tori: 6, N» Y.
A

Telephone

WHitehali

CORP* Dept.
Fifth Avenue.

R. Y.

Name'\j

September 19, 194fi

3-4000

for fundamental rc
research, against the attractions of ;
industrial employment, f v;'
research workers,

Common Stock

•

StreeL

■■

1462

THE COMMERCIAL & FINANCIAL CHRONICLE
LXUii
.

Wall Street Cashiers
Hold Annual
The

Wall

Outing

Cashiers' ■-Association

Recommendations and Literature

Street, Inc., announces that

its annual outing will be held on

Saturday, Sept. 21, at 1
Schmidt's Farm in

York.

Scarsdale, New

Estabrook Adds Smith

•

(Special

South

MASS.—Harold

Smith has been added to the staff

Estabrook

Co.,

State

California

tion

Recent

News of developments in the field
—Loewi & Co., 225 East Mason

CARTER H.CORBREY&CO.

Public

■

Member, National Association
of Securities Dealers

Current

Utility

Stock

quotations

mon

stocks—G.

Saxton

com¬

'52

and

Gas

650 S.

135 La Salle St.

Spring St

of the lumber and timber
with

data

Co.,

Salle

Street,

Consolidated Gas
Utilities

Richmond

—

Fairman

& Co.,
Street/ Chi¬
' 1

Salle

4, 111.u

Cedar

Timber

—

new

analysis of the company, which is

Works,

listed

Salle

the

Street,

Analytical
speculative

Com.

Request.

Teletype CG 405
Indianapolis, Ind.
'
Rockford, 111.
Cleveland, Ohio

Chicago 3,

111.

Analysis—J.

231

Also

available

study

S. Campbell Co., Inc.u

N. Y.

circulars

are

—t-Ward

Branches

;;

New York 6, N. Y.

Salle

Street,

Chi¬

analyses of
Manufacturing

are

Press

Bell Lumber Co.,
Manufacturing Co.

International

Recent

Manufacturing Co. —
Descriptive
analysis—du " Pont,
Homsey
Co.,
31
Milk
Street,
Boston 9, Mass.

Co.,

120

Broadway,
memoranda

Also available is
Boston

Hartford Empire; Lanova

Mohawk

Rubber;

Products.

analysis of

and

Wharf

Purolator
■.

Oil Exploration;

District

Electric

1420

Fried¬

George J. Stigler

—

possibilities

—

Irvington-on-Hudson,

Inc.,

Economic

N. Y.—paper—25c (lower

Hoit,

Rose & Troster, 74 Trinity Place
New York 6, N. Y.

Educa¬

price

Mills—Report—Luck-

German

Fred B. Prophet Company—De¬

Economy Must
Clay i

memorandum—De
&

National

Young
Tornga, Grand Rapids
Bank Building, Grand

Rapids 2, Mich.

Be Revived: Gen.

(Continued from page 1455)
hope is expressed that the Council
of Foreign Ministers in its next
meeting will solve in principle

—

Memorandum

Frank

—

Moore &

the

York

been

Co., 42 Broadway, New
4, N. Y. ; %

German

Manufacturing

Co.—

quadripartite
party or another.
by the writer in an
article, the / difficulties

earlier

which

Securities

Company

—

available

—

Indeed, the French veto
has been the major stum¬
bling block in a great many im¬
portant instances.
The point is
not

memoran¬

J' Distillers

man's

rif-'

French

Zone

importance

Company, 40 Exchange

our

analyzing

new

these

Walnut

Also

Co.—

Brothers,

Street, Philadelphia

:;;V:V
Available

economy,
but
that
the
veto stymies action else¬

The Control Council must

act

unanimously.
looking

ure

financial

Thus

far

are

met.

other hand accepts.
In
words, the Russians want
Germany treated as a political

troit 26,

the

Manufacturing Corp. —
Recent report—Mercier, McDowell
& Dolphyn, Buhl Building, De¬

other

whole

Mich.

are

Showers Brothers Co.—Analysis
—Caswell & Co., 120 South La

Pulley.

economic

:|"

•

The

Financial

Chronicle)

CLEVELAND, OHIO —Charles
I.

Study of situation and outlook—
J. V. Manganaro Co., 50 Broad
Street, New York 4, N. Y.

Marston

has

become

with Ball, Burge &

affiliated

Kraus, Union

Commerce

A.—Current

analysis—
John J. O'Brien & Co., 209 South
La Salle Street, Chicago 4, 111.

Building, members of

the

memoranda

Gruen Watch Co. and American

With Ball, Burge & Kraus

Syracuse Transit Corporation-

well

Whole,

York

New

Stock

and

Exchanges.

Cleveland

was

Public

Utility

Common

Brochure

*Prospectus

Industrial

Railroad

Municipal

■

•

SILLS, MINTON & COMPANY

private Wire to_ Npw York
Beil System CG 587

H. M.

INCORPORATED

Direct

Request

Bonds.

Telephone Randolph 4068
!

BONDS and STOCKS

Stock

209 SO. LA SALLE ST., CHICAGO
4, ILL.

Telephone Dearborn
P|rect

1421

Private

Wire

Teletype CG 864
to

WHITE

Byllesby and Company
Incorporated

Members Chicago Stock
Exchange

CO.,

New

York

135 So. La Salle

Telephone
New York

State

with

Hornblower & Weeks in the past.

Underwriters—Dealers—Distributors

$1.05 Convertible Preferred*

SOUTH LA .SALLE ST.
CHICAGO 4, ILLINOIS

the

toward
economic,;
administrative-unifi- :

cation of Germany until their de-^
mands as to the political status of

Maryland Casualty Company

208

Ger¬

French have blocked every meas¬

Sheller

Primary Markets

51/2's of '52
Write for

French

Corporation

Fifth Avenue, New York
N. Y.
!>r

the

where.

been running in the Chroniclewrite to Mark Merit, in care o'
350

that

dominant

Schenley Distillers Corporatioi

Schenley

en¬

power

has

furthering its ideas

sians.

Firsl

Standard Milling Co.

the United States

for the German economy have not
been due exclusively to the Rus¬

Chicago
134 South La Salle Street, Chic¬
ago 3, 111.
dum

one

countered in

N. Y.

memorandum

As pointed out

Analysis—Steiner, Rouse & Co..
Broad Street, New York
4,

St. Louis Public Service "A"

(

problem, which has

stalemated

meetings by
Rockwell

Utility
t

quantity orders).

$2.10 Cumulative Prior Preferred*

The

tion,

for

(Special

Empire

Memorandum—Buckley

Avondale

Ceilings?—The Current

Problem—Milton

and

man

Salle Street, Chicago 3, 111.

New

and Taylor Wharton Iron & Steel;

the Rhineland

Place, New York 5, N. Y.

Roofs

Housing

—Brochure of articles they hav*

SINCE 19081

Central Public

and

Bridge
study>— F. J.

Barcalo; Haloid.

hurst

Fred. W. Fairman Co.

Publishing Corporation, 330 West
Street, New York 18, N. Y.

42nd

Seaboard Air Line—Study of
Company—Analy¬
That Russia, on the other hand,
sis for dealers only on 66-year old situation in a railroad equity with
has not joined its zone to the
company
with interesting pros¬ speculative possibilities — R. M.
others is based on the Russian ob¬
pects—Moreland & Co., Penobscot Horner & Co., 30 Broad Street,
jection to exclusion of the Saar,
New York 4, N. Y.
Building, Detroit 26, Mich.
-

2, Pa.

Telephone COrtlandt 7-5C60

Boston Chicago Philadelphia San Francisco

—

which the American Government

Jersey Worsted;

Guenther Law

Business

for

C. H. Dutton

W. L. Douglas Shoe Co.; Gen¬

Corp.;

—

New York 5, N. Y.
Also available are

eral Tin;

Prepared—Conference Invited

Panama Coca Cola—Circular

Also

—

Abroad

—cloth—$4.00,

Young & Co., Inc., 52 Wall Street,
New York 5, N. Y.

Aspinook Corporation—Circular

■Incorporated

Williston

Co.—

Dwight

ADVERTISING

available

Company

; ;

available

Varnish

Detroit

Chase

Century

Foundation

;

Co.; Long
Miller

yiydoT

Engineering.

FINANCIAL

Going

Old Ben
Coal—Descriptive data
—Scherck, Richter Co., Landreth
Building, St. Louis 2, Mo.

Street, New

4, 111.

Also

Tennessee Products and Wellman

131, Cedar Street

South

cago

war—Stuart

Edmund B. Besselievre—Reinhold

Red Rock Bottling Co. of Cleve¬

Decker Manufacturing Co.—De¬
tailed Analysis—Comstock & Co.,

brochure

York

Consoli¬

Co.,
115 Broadway, New York 6, N. Y.

Co.—

New

Fund,
330
West 42nd Street, New York 18,
N. Y.—cloth—$1.00.
' ■ •.

Street, Chicago 4, 111.

Detailed
Glass

Twentieth

Paint

Cook

ration, 120 Broadway, New York
5, n. y.

Also

<•

and

weiler & Co., 52 Wall
York 5, N. Y.

Argo Oil Corp.—Descriptive cir¬
cular—Seligman, Lubetkin & Co.,
Inc., 41 Broad Street, New York 4,

St., Chicago 3

Tel. Franklin 8622

Albert Frank

Co.

memoranda

Railway—Circular—Bendix, Luit-

Chicago Board of Trade

Its

are

Chicago, Rock Island & Pacific

Arden Farms Company—Analy¬
sis—New York Hanseatic Corpo¬

All

Muter

Hydraulic

Com.

Established. 1916 s&sss~r.;, 4
'Members Principal Stock Exchanges ■

math

South La Salle Street, Chicago 4,
ill.

land

indicating
possibilities — Kneeland & Co., Board of Trade Build¬
ing, Chicago 4, 111.

Paal H.Davis & Go.
So. La Salle

available

the

Street,

Northwestern Yeast Company—
Memorandum—Adams & Co., 231

dated Gas Utilities Corp.

fi¬

Special report—Cohu & Torrey, 1
Wall Street, New York 5, N. Y.

Com.

Woodward Govenor Co.,
*Prospeclus Available

American Power & Light Co.-

Snap-On Tools Corp., Com.
Cribben & Sexton Inc.,

events

Commentator—Di¬

36th

For This We Fought—The after¬

Larson

Street

East

1945

Association,

-paper.

National Terminals Corporation
—Late memorandum for dealers

Price, 231 South La Salle Street,
Chicago 4, 111.
.■>,=>■'

together with reviews and analy¬
sis of specific situations—Bennett,
Spanier & Co., Inc., 105 South La

Wall St.

Co.,

tailed

American Window
Wells-Gardner

N. Y.

the Oil and Gas Division—Hicks &

ST., CHICAGO 4

Banks in

Bankers

the N. Y. Stock Ex¬

nancial markets of North America

Randolph 5686—-CG 972
New York Office

for

Principal Stock Exchanges
Chicago Board of Trade

So. LA SALLE

Co.—Ask

Also

6^PR|CE

Members

—American

Exchange Place, New York 5,

gest of current

HICKS

Interesting
Chicago Corporation

Lumber

now

Wall

Request

Analysis of the

situation and prospects for appre¬
ciation—J. F. Reilly & Co., Inc.,

Co., 25 Broad Street, New York 4,
N. Y. ;

Corp.

Earnings & Expenses of All In¬
sured Commercial
—

Electric

Comprehensive
analysis in brochure

Street, New York 5, N. Y,

Higgins, Inc.

change, with special reference to

The-Muter-Co.
Circular

Gulf, Mobile & Ohio Railroad—
Analysis—R. H. Johnson & Co.,

51/2S

industry

Long Bell

Booklet C—William L. Burton

The Chicago Corp.

Plans

135

Chicago

only—Adams & Co., 231 South La

Utility

erhauser

Co.,

Southwest Lumber Co., and Wey-

Street,

v,.

64 Wall

Co., Landreth Build¬
ing, St. Louis 2, Mo.
J
V

"Timber Returns"—Brief resume

LA 255

Salle

Tenenbaum

Michigan 4181

CG 99

Brailsford

Chefford Master Manufacturing
Co.—Detailed ( analysis—Peltason,

LOS ANGELES 14

State 6502

Pfd.

and

South

cago

Analysis of Interesting Outlook—
Ira Haupt & Co., Ill Broadway,
New York 6, N. Y.1 v

DISTRIBUTION

Corp.—

projections

Consolidated

form—Fred

Railroad Equipment Industry—

MARKET

Utility
—

Public

and

study
208

UNDERWRITERS

CHICAGO 3

Salle

Central

unlisted

Co.,
Inc., 70 Pine Street, New York 5,

Pacific Coast

Public

values

Co., 208 South
Chicago 4, 111.

For

SECONDARY

—

Guide—

public utility preferred and

Wholesale Distributors
—

report

revised

work-out

Street, Milwaukee 2, Wis.

Middla West

Consumers Corpora¬

Detailed

—

Central

Business and Financial Digest—

Street, members of the New York
and Boston Stock Exchange.

231

3, ill.

industry y/ith individual surveys Strauss & Co., 155
Montgomery
of the potentialities of
eighteen Street, San Francisco 4, Calif.
different companies — Merrill
Also available is a study of Iowa
Lynch, Pierce, Fenner & Beane, Southern Utilities Company. < ^
70 Pine Street, New York
5, N. Y.

Financial Chronicle)

The

BOSTON,

Brochure—Dempsey

Airlines 1946—Study of finan¬
cial position and outlook for the

.'•*

Great Lakes Plating Company^—

It is understood that the firms mentioned will he
pleased
to send interested parties the
follotoing literature:

p.m.,

General Public Utilities Corp.—
Analysis—Hettleman & Co., 1 Wall
Street, New York 5, N. Y.
x

Dealer-Broker Investment

Thursday, September 19, 1946

—

Street, Chicago 3

Teletype

8711

Philhdel$hid'f *

Pittsburgh

273

Minneapolis

•

*-*Mv.'ViYV'*,

•v

rr.-.*

THE COMMERCIAL ^ FINANCIAL CHRONICLE

Number.'45

Volume 164

Pa hi

Bear

1463

Markley & Co. Formed
In Poughkeepsie, N. Y.

POUGHKEEPSIE, N. Y.—Mark"
ley & Co., Inc. has been formed

(Continued from page 1459)
'•./N
r.J..:.".

seldom

lasts

month,

Since

week of this

about a

than

this

the

third

particular decline, it
that

reasonable to believe

seems

the

urgent liquidation may soon
have spent its force.
; ;

settling

the

market,

but

commenting

and business' outlook in

Iii

the

memorandum,

the

market

phase of

this

""Wage-Price Garrotte," dated
June 25, 1946, it was stated:
'
•'
"We have already seen, in the
February decline and in the re¬
cent minor

decline, how thin are
markets, how
&i' ''m utterly Incapable of absorbing any
large quantity of offerings with¬
out sizable price concessions.
'/
"Such selling as the market has
been called upon to absorb for the
past six or seven months appears
WsV:
to have been largely professional,
restricted

modern

'•

from

large holders and institu¬
tions.
At no time has there been

memo¬

randum,
and

"Market Outlook—1946
Beyond," dated Dec, 14,; 1945.
stated;

was

"The

intermediate

term

outlook (for stock prices)
suggests a further rise into 1946
with the risk of a substantial in¬
termediate decline of some conse¬
quence.

"The

vision

of four, five or
of relative world pros,
perity is very likely to be real¬
ized, but ft does hot follow, thai

beginning, forthwith
or

we will take
that much-desired state
that the road thereto will be

into

without

turns

many

and

rough
spots.
Time will be required for
workable
international
agree¬
ments, for elimination of impedi¬

large scale panicky
the part of the public.

ments all along the line, for the
resumption of foreign trade and

is sincerely to be hoped that
such a situation will not develop,
but the risk that the market may

of the beginning of this period of
world-wide activity by late 1947

face

evidence

selling

such

juncture has in¬
particularly in view of

creased,

the

( relatively large volume of
new
security issues that ' must
have consumed

a fair portion of
public buying power for securi¬
ties." ;/yy
We are now witnessing the re¬
sponse of the market to heavy
public selling and the liquidation
-

will run its course until the more

timid holdings of stocks are elimi¬
and
until
prices attract

nated
-;vrr

large scale buying.

building activity.

early 1948

seems more reason¬

;

Investors

cerned

naturally > con¬

are

to whether

not the

decline in quotations is indicative
a prolonged period of business
recession and liquidation.
Simi¬

\am

the decline to date

larity of

what took place in 1929 and

1937
naturally recalls to mind the de¬
W<;

flation of business that occurred
after those breaks,

r It would be folly to maintain
that

decline of the magnitude

witnessed by the market will not
have its effect Upon business sen¬

Municipal Meeting

of the: National Security

tion in Seattle.

that

belief

Philadelphia, Vice-Chairman of
for

with

Drt Paul J. Raver, administrator of the Bonneville Power Author¬

better.

deflation in the

econ¬

may

If that turn is to

City, who

Mitchell, New York
Revenue Financing,"

will have for

his

TRADING

subject, "Sewer,

\
1 .*
Following the addresses there will be an open discussion and
brief remarks by John Stevenson, of Dun & Bradstreet.
Members of the Municipal Committee are: J. W. Kingsbury,
Chairman; Russell M. Dotts, Vice-Chairman; F. Monroe Alleman,
Leedy, Wheeler & Co., Orlando, Fla.; Edwin R. Foley, Kaiser & Co.,
San Francisco, Calif.; Stanley G. McKie, Weil, Roth & Irving Co.,
Cincinnati; and A. A. Sullivan, Equitable Securities Corp., New York
t;

occur

economic structure. The function intermedate term would be some
the depression serves is to restore further extension of the recent
decline. : followed by
a
fourthbalance by deflation of the in
cause

of unbalance; in 1929 it was
■

rSfr.

cred¬
its; in 1937 it was a combination
of inventories, wage costs, wai
and

fears

concern

mental interference.

it that way")

chief

The

the

govern¬

over

("We planned

quarter and year-end rise, in turn
followed by another decline that

Two Denver Investment

Chicago 3, III.
Tel. STAte 4950

market

is called

major

correction

investment

Active

firm. '•

National

Terminals

CHICAGO,
name

Street,

Hayes

has

to
Doug¬

Co.

withdrawn

in 1927

as an

individual pro¬

causes

of unbalance

are in¬
flated costs in relation to selling

situation

present

inter¬

question

terminology,

date

reasons

are

but

least

lacking for be¬

lieving that the recent decline in

It has long been apparent

prices.

Both

firms

prominently
financing

have

been

identified

remaining the

commercial

successful

organiza¬

many

tions of this western
dition to

area

participating in

same.

in large municipal and

underwritings

cor¬

originat¬

:;*T obias with Westheimer; J
Chhonicle)

The two companies hold mem¬

i' 0"-i*'

with

Dean

Chicago

Stock

Exchange, the Investment Bank¬
ers

Association

America,

the

Cole is with

CITY,

business

would

jpiring; better

required

into tl
taking off into the

balance

economy before

widely expected several years of

general

prosperity

that

and

prices, lasting over
of

months

prospect

and

long period

cancelling the
later period of

world-wide activity and prosper-

♦PHILIP BLUM
MIDLAND UTILITIES
■

;v'

';y

MIDLAND REALIZATION

NORTHERN INDIANA PUBLIC SERVICE COMMON
*

Prospectus available

upon

request

Seven-Up~ Texas Corp.
S.

tCHICAGO 3, ILLINOIS

Telephone: Dearborn 6161

Trailmdbile Company

Herrick, Waddell &

Teletype: CG 1200

t
'

COMSTOCK & CO.
CHICAGO 4

M
*Black Hills Power & Light Company
^Central Arizona Light & Power Company

«"•
231
?

,■

So. La Salle St.
-

Dearborn 1501

Teletype CG 955

Central Illinois Electric & Gas

Company >
Empire District Electric Company
*Gulf Public Service Company
Iowa Public Service Company
Lake Superior District Power Company f
Missouri Utilities Company
*Otter Tail Power Company
Public Service Co. of Indiana, Inc.

■It:-;'

Macfadden Publication^

Gisholt Machine
All Wisconsin Issues

*Sioux City Gas & Electric Company
Southwestern Public Service Company
*"

Prospectus available upon request.

HOLLEY, DAYTON & GERNON

Members—Chicago Stock Exchange
105 So. La Salle

A.C.AUYN^COMEANY
Incorporated

CG 262

Chicago

New York

•

Boston

Milwaukee

«'
»

Minneapolis

St., Chicago 3, III.
Central 0780

•

Offices

Bau Claire

St. Louis Public Service Co.

Co., Inc., 102 Baltimore Avenue.

PUBLIC UTILITY COMMON STOCKS

■'

135 SOUTH LA SALLE STREET

Mastic Asphalt Co.
Mi I ler Manufacturing Co.

^Detailed analysis available on request,

DOYLE, O'CONNOR & CO
INCORPORATED

Long-Bell Lumber Company

&
*

MO.—Roy

Manufacturing Co.

Old Ben Coal Corporation:

Witter

ward spiral of business and Stock

some

:>£;w i }

Hydraulic Press Mfg. Cof

With Herrick Waddell
KANSAS

% '■ \

Decker

Co., 409 14th Street.

that

'*>!

Howard Industries, Inc.

Cbbonicuc)

OAKLAND, CALIF.—James A.
Felchlin

•

phone state 0101

AeroncaAircraftCorp.
*

Witter Adds Felchlin
(Special to Thk Financial

Omaha

in Wisconsin

Fond du Lac

Madison

4, illinois

teletype cg 36f

the market signals a major down¬

period of recession in

the

south la salle street

■ a

ing in other parts of the country.

berships

chicago

(Special to Tax Financial

Request

sAIMMS SCGO
231

in ad¬

major

'■?y

very

with the
the most

<:♦

from

partnership in the firm, the other
members

Circular

135
South
has
been. changed

Woodruff, Sholten &
las

The firm
Hayes
&
La
Salle

—

Woodruff,

Sholten,

■

Common Stock

ILL.

Corporation

t.If.

Sullivan & Co. started in busi¬
ness

Sholten & Co.

Trading Market in

Woodruff,

bank¬

Tele. CG. 28

y:;yv„

the

poration

bear

135T South La Salle Street

Banking Houses Merge

Both of these firms have been

leaders

Whether such

mediate

♦

COMMON

National Association of Securities

DENVER,

way

move

MARKET

KITCHEN & CO.

will probably not endure beyond
the second quarter of next year.
a

Co.,

Hilton Hotels

heavy

prietorship and was later changed
timent and business conditions, fate 1947 or early lp4&fhe market
j to a partnership with Mrs. SullP (; CINCINNATI, OHIO^rJohq/E.
Nevertheless, there is little reason may1 beer~—J '■**'
van andi Paul E. Youmans as gc
[Tobias is now affiliated' With.
for believing that we are on the fleet vfhe"
eral
partners
and
Mrs. y Ann®' Westheimer & Co.,' 326 Walnut
threshold of a major business de¬ first half of 1947.
O'Neill
Sullivan
as
a
limited
Thus a reasonable course for
Street, members of the New York
pression. Depressions result from
Vf',-/-.::-.
stock prices to pursue over the partner.
a preceding lack of balance in the
and Cincinnati Stock Exchanges.

flafed elements.
In 1919,
inventories were the chief

Purcell

earlier

it be expected to
anticipate a later change for the
so

psychological, social ing business in this area for many
and political rather than essen¬
years. Bosworth, Chanute, Lough¬
tially financial and economic and
ridge & Co. commenced business
because
important elements of in 1916 as a
corporation composed
strength are still present in the of Arthur H.
Bosworth, W. Octave
form of large demands arid sub¬
Chanute
and
Paul
Loughridge.
stantial savings the readjustment
Dudley F. Baker and J. Wallace
period need not be prolonged.
Coxhead,
who
are
officers
of
And just as the market may be
Bosworth, Chanute, Loughridge
currently discounting well in ad¬ &
Co., will be officers of the new
omy,

Edward

Thomas Graham, Bankers Bond Company, Louisville, Ky.. Presi¬
dent of the NSTA will introduce Robie L. Mitchell of Masslich and

vance some

New York City, and Mr, Pedolsky
has been doing business as an in¬
dividual dealer.
;

ity, will be introduced by C, W. EasterK Blyth & Co., Inc., Seattle.
Dr. Raver will speak on "Public Power Development in the Pacific

tend

Lane

Kussell M. Dotts, Bioren & Co..

the municipal bond Committee will read the Committee's report
J. W. Kingsbury, Kingsbury & Alvis, New Orleans, the Chairman.

COLO—Arthur H.
Bosworth, President of Bosworth, Dealers, Inc., and other trade or¬
.Chanute, Loughridge & Co. and ganizations.
There
seems
no
reason
for John J.
The new firm which will com¬
Sullivan, President of
changing this view which was Sullivan & Company, announced bine the personnel of both of the
based on the expectation that
pro¬ Sept. 18 that effective Nov.
1, present firms, will, after Nov. 1,
duction would reach a high late
business
in
enlarged
1946, the businesses now con¬ conduct
this year and be followed by a
ducted by the two firms will be quarters on the ground floor of
recession that would (1) reduce
merged into a new corporation the Security Building.
(
employment sufficiently to restore to be known as
The merger of the two firms
Bosworth, Sulli¬
labor productivity and
bring a van & Co., of which Mr. Bos¬ will give Denver its largest in¬
greater degree of stability into the worth will be Chairman
of the vestment banking house and one
whole labor situation
and
(2) Board and Mr. Sullivan, Presi¬ of the largest in the country.
force a realistic policy of govern¬
dent. -V

able

regulation" of business.
Because: the problems of business

Depression Ahead?

Annual

Expectation

mental

fvp

13th

Traders-Association will be held today at the Association's Conven¬

Northwest";

more years

off

The

Wood

in the securities business.
Officers of the firm are Raymond
M.
Markley, President; Vincent
La Femina, and Samuel Pedolsky
Vice-Presidents; William R. Al¬
laire, Secretary, and. Treasurer;
and J, Clark Work, Assistant Sec¬
retary. ,'
{
Mr. Markley was formerly with
Security
Adjustment
Corp., of
Brooklyn.
Mr. La Femina was

ANNUAL MUNICIPAL MEETING OF THE NSTA

the market

upon

offices

engage

these

Timing /■'' ;r/;\
In

with

ill-founded.

seem

;y An
important contribution to
the; speed of decline to date has
heen the thinness of the market.

discussing

NSTA Notes

process of discounting.
War fears
also have played their part in un¬

Thin Market

the market; is probably- in

what

La Grosae

Wausau

CHRONICLE

THE COMMERCIAL & FINANCIAL

(1464

Michigan Brevities
filed an application with,the
acquisition of assets of West
Michigan Consumers Co.
West Michigan has authorized stock of
5,000 shares, no par value, of which 4,182 shares are issued and out¬
standing.
i.. ■
,

Co., Detroit, and

Car

Mich., announced that
"well oversub¬
Proceeds will be used
a bank loan and to add

Co., Belding,
the"

issue

scribed."
to retire

was

capital.

to working

Grand Rap¬

Dudley H. Waters & Co.,

underwriters of a new issued
of 175,000 shares of stock ($1.25
a share)
of Metal-Glass Products

Products,
Inc.,
common
stock .will he traded
on the Detroit Stock Exchange,
Aeronautical

with

Mrs.

registration is expected to
effective in 15 days.

nell

reports that to date exservicemen have borrowed more
Detroit

MICHIGAN

UNLISTEDS

loan

Stock Exchange

invaluable

been

Phone

been

has

and

Cherry 6700

ser¬

1921,

September,

since

vice

DETROIT 26, MICH.

continuous

record

"Your

BUILDING

DE 167

Exchange

to Shader-Winckler
Co. on the firm's 25th anniversary
as
a
member of the exchange.

Wm.C.Roney&Co.
Teletype

' '. •

Stock

tribute

paid

812 BUHL

program.

Detroit

The

Members New York

banks

$1,375,000 under the

than

the

has

exchange

distinct

contri¬

Co.; Don W.. Miller of McDon¬
ald-Moore & Co. with Mrs. Mil¬
&

t :

of Wm. C.

V."

Mqtal Products
Trade will start

has been okayed.

For the fiscal year

ended June

financing

year.

$3,352,300 against

$3,304,139 a year ago. Net working
capital totaled $3,142,033 against
$2,892,244 at the end of the pre¬
ceding fiscal v'year.
Equity per
,

June

30,- 1946,

was

compared with $46.52 a
year ago.v
%'
//J///.', During the year the company
set aside $76,053.85 for the em¬
ployees' benefit under the terms
$47.74

MICH.—The . First
Michigan Corp., Buhl Building,

DETROIT,

Ex¬

change, announces the election of
Edwin K. Hoover as a member of
the board of directors. Mr. Hoover

the

additional

/•.,

taxes.
•

For the 28 weeks ended

July 13,
1946, Billings and Spencer report¬
ed a net addition to surplus of
$46,440, equivalent to 25c * per
share.

■

•

■;•/■

ization,"':"'1

Stockholders of
Power

Michigan Markets
639 Penobscot

Building

;••''.v;

;

DE 206

Randolph 5625

week in

last

Report furnished on request

;

Mercier, McDowell;
& Dolphyn
Members

Stock

Detroit

Exchange

Buhl Bldg., Detroit 26

has

assumed his director¬
First of Michigan

again

ship'with the

V./;,,:.'

Corp. r

v"'vv-; v"

First

;

e r

the; additional
of

basis

one

shares/ on the

new

each 7 shares' held.

$10

!,f

-1

Fred B. Prophet

Simplex Paper

■

Metal

the

welded

Buck¬

Forming Corp., a pioneer

manufacturing
light weight
mouldings, was -' incorpo¬
field

and

tubing

1917. The
makes;posture
The metal mouldings and
tubing are sold under the

also

company

chairs.

Douglas and Lomason

Company

welded

"MEFCO".

trade-name

Stearns Mfg. Co.

Common Stock

the

All

products are made for others and
the company

generally makes no

sales to consumers.
on

Request.

Trading Markets

The

whollya
net
profit, after deductions for Fed¬
company

owned

WHITE, NOBLE & CO.

DeYoung, Larson & Tornga

Members

Detroit Stock Exchange

Phone 98261

GR 84

GRAND RAPIDS 2

GRAND RAPIDS, MICH.
-

"MICH. TRUST BLDG.

Phone 94336

Teletype GR 184

used

for

ex¬

equipment, will require an
investment of approxi¬

increased

mately $750,000 by the end of the
'

:V ; : ';••; #

the

* t

i'*

annual
of

r--,X
the
Co.,

meeting of
Torrington

given the privilege of sub-,
scribing to the new issue of 4.32%

vide for the creation of the office

were

Chairman

Board.

the

directors

have

.The

elected

board

ferred for each old $100 par com¬

President William R. Reid to that

mon

its

share held, at

The

$26.50

share.

preferred will pay an
annual dividend of $1.08, payable
new

instalments. V The
stock is redeemable at a gradually
declining scale of prices and con¬
in"

quarterly

of com¬

to' and. including .Sept.
shares to Sept.
15, 1952; and one share to Sept.
15, 1956, after which the conver¬
sion privilege expires/
7
;;•//;

mon

15, 1949;,into 1.125

'"V

unsubscribed portion

The

preferred shares were sold
to the public by Putnam & Co.
Sufficient new common stock

-the

will be reserved by the company

for

the

rived from

11,250

the

expenses,

Windsor, Conn.
*

Net

ended

Dec.

President.

Elder, Wheeler Offers
Gloria VanderbiH Stock
An

issue

300,000

shares of

$1 each/ of
Gloria Vanderbili; Corp., is being
offered today by Elder, Wheeler
common

stock,

par.

& Co., New York. The price to
thepublic is $3 per' share. The
net
proceeds will be used for
remodeling - and ' equipping * a
manufacturing
plant,
for
pur¬
chase of inventory and for financ¬
a

promotional campaign. : /

of the pre¬

sale

together" with other funds, will be
used to construct a new foundry
at

Vice-President, will Succeed

Mr. Reid

ing

after' deducting

show

tive

that funds de¬

expected

ferred

conversion

of preferred.

office and Lester J. Ross, Execu¬

into J .25 shares

vertible

T. A. Bradford in

Washington, D. C.
WASHINGTON,

'./•riv
C.—T.

;

■'

ford &< Co. with

offices at, 1322 G

Street, N. E. to engage in the se¬
curities business.

sales

31,

the

for

1945

were

Tifft Brothers
Members New York

tive

Manufacturing

Fitty*fiith Year oi Dealing in

and Boston Stock

Exchanges

Exceptional Prospects

Associate Members New York

Connec tic ut Securities

Curb

Exchange

Analysis For Dealers Only On Request

Primary Markets in

Primary

Markets—Statistical Information

Hartford and

Moreland & Co.
MEMBER

DETROIT

STOCK

Connecticut Securities

Chas. W. Scranton & Co.

Hartford 7-3191

EXCHANGE

Members New York

1051

PENOBSCOT BUILDING

New York:
New

Bay

City

—

Lansing

Stock Exchange

New Haven

6-0171

BOwling Green 9-2211

DETROIT 26
—

Muskegon

Bradford has formed T. A. Brad¬
*

Chas. F. Ware Opens /
preferred stock of the Scovill
Co. at $102.25 a
LODI.
CALIF. — Charles ;F.
share.
Scovill is offering its pres¬ Ware is
engaging in the securities
and net profit, after ent stockholders the right to sub¬
business • from offices at 20 West
for • Federal
income scribe at $30 "a share to 149,548
•Oak .Street.
.?.
:: -■ -r ■
$45,504.
!
/
I; -* shares^ of the company's, common

$626,290.

taxes, was

with

// / ///v.:;

the by-laws were amended to pro¬

Morgan, Stanley & Co. recently
taxes,;fof the four headed an underwriting group
months ended April 30, 1946, qf which offered to the public 100,000
$55,361 accruing from net sales shares of $100 par 3.65% cumula¬

$1,263,119,

Company

and

subsidiary

provision

A 66-year-old company

stock
share

new

Sept. 4

Stockholders of record

income

eral

year

The C. H. Dutton

added

stockholders

common.

one

pansion and additional ; working
capital. The operation of a pew
factory building, together with

and

stock

preferred

the com¬

preferred in the ratio of three pre¬

rated under the laws of the State

the authorized capital from

common

will

Proceeds

51,563

Colony Corp Offers

of Indiana on March 29,
.

in¬

basis

at $48 a share.

year.

a s

The Detroit Stock Exchange has ley
Brothers.
The
stock
was
approved * \an application to list. priced to the public; at t$7.50 a
29,283 shares of... Walker. & Co. share. This sale does not con¬
class .B no par value stock. ■, The stitute new financing by the com¬
company proposes to issue war¬ pany
but represents shares al¬
rants to class B holders of record ready outstanding and owned by
!
Sept. 16 for 'rights to subscribe certain" stockholders.

for

proposal to

par

each five shares now held

for

$500,000 to $796,880, which is rep¬
resented by 11,250 shares of $25

He * .has

•

approved

crease

metal

Circular

Stockholders of Taylor & Fenn
Co.

par

by First Colony Corp. and

to,

Tele. DE 507

Cadillac 5752

duties as a committee member,

■;
An offering of 50,000 shares of
Exchange" mem¬ $1 par * value common stock of
been
active in Metal Forming Corp., Elkhart,
brokerage circles here since 1919. Indiana;, was made September 18

Shelter

Manufacturing Corp.
.

r e e

outstanding 60,000 shares.

S//}/.£•;■
Having recently completed his

Stock

Detroit

bers,
■

S t

Finance

are

shares of $10 par

currently

War

Treasury

partment of White, Noble & Cq.}

request

There

2-for-l.

$25

the

6,000

pany's

stock

common

division

t i n g s has been
named manager of the trading de¬

Electromaster, Inc.
furnished

September..

Griswold

Veteran

Pierce

Prospectus

;

financing plans which include the
sale
at
competitive bidding of
sufficient common stock to pro¬

$20,000,000 in cash. Several
syndicates have been formed to
bid on the offering, lexpected the

Teletype

the

Committee for Michigan. ;;

approved

duce

DETROIT 26, MICH.
"-Telephone

have

Consumers

Company

split

Conn., has offered

to its stockholders for subscrip¬

recommendation

banking

the

director

•

to *

mittee and later became, executive

/of

American Paper Goods Co.

Kensington,

Bristol Brass Corp. will vote on

directors'

esti¬

refund

tax

"carryback" pro¬
visions, operations for this period
having resulted in a net loss of
$58,560 before taxes.
.'•
4*
*-r"••///::-

tion
•

result of

Federal

$105,000 under

On Oct. 10 the stockholders of

the

This is

mated

...

')*; •• '■

to the firm. Fred J.

equip¬

divisions.

ous

Benefit

and

Retirement

machinery,

ment and buildings for the main

Fund, which represents 10% of
the
year's net earnings before

our

due to the firm's sales organ¬

was

Exchange

to be used to pay

are

$4,000,000 bank loan, and

Members Detroit Stock

plant at Waterbury and its vari¬

Michigan

members of the Detroit Stock

turing Co. reported net income of
$328,464, or $3.41 a share against
$334,621, or $3.47 the preceding
The balance sheet showed total

Edw. Hoover Director of

off

current assets qf

First of

•

the purchase and construction of

Winck- year of its incorporation, until
ler,
speaking for ••his partner, January, 1943. At that time he was
Frank J.
Shader,said a large appointed Michigan regional man¬
measure
Qf the house's success ager of the Victory Fund Com¬

Established 1919

;

30, 1946, North & Judd Manufac¬

October.

■

the Detroit Stock Exchange

'.i '

;

///

Co.

■

sage

ended June 30, 1946, Hartman Tobacco Co. showed
$193,167 against $137,997 for the preceding 12 months.
Earnings on the prior preferred^
were $13.62 .against $9.73, and on
stock at the ratio of one for each
the
$3
preference
stock
$9.62 seven shares held. Rights expire
against $5.73 respectively.
Sept. 30.
'
'
:;•.
• •
*
*
#
..i"
Proceeds derived
from this

progress," Charles was one of the organizers of this
A. Parcells, exchange President, corporation and served as a direc¬
stated in a ~ congratulatory mes¬ tor of the company from 1933, the
to

bution

For the year

net income of

Lundington of Baker, Simonds

,i' '

•

;

McDowell & Dolphyn;
Kemp of R. C. O'Don& Co., with Mrs. Kemp; Bert
H.

stock of American

Bank,

National

Industrial

J.
of

Mercier;
Frank

Co.

The

Edwin

application to list 429,960
shares of $2 par value common

become

Call Us On Any

George
Mercier

Moreland;
C.

and

Elder

Veeder-Root, Inc., has acquired all the outstanding stock of HoloKrome Screw Corp. which was formerly 80% owned.
In exchange
for these shares, Veeder-Root directors voted to issue 7,300 shares
of the company's authorized but unissued stock.
*
-

It was said

board of governors.

Sept.

Roney &

of the company's appli¬
cation to list by the exchange's

proval

the

Connecticut Brevities

17-21. They are: Paul
1. Moreland
of Moreland & Co.
and President of the local group,
attle

ler and John K. Roney

disclosed following ap¬

was

this
Se¬

curity Traders Convention in Se+

Michigan Consolidated Gas Co. has
SEC seeking approval of its proposed

ids,

the National

attend

left

Detroiters

Several
week

Thursday, September 19, 1945

Bell System

Teletype: HF 365

London

2-4301

Hartford 7-2669

New York Canal

6-3662

Teletype NH 194

Waterbury 3-3166
Danbury 5600

Volume

THE. COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

164

1465

Missouri Brevities

Investigate Odd-Lei Business
round- lot

are
concerned;
regulations have

complete the purchase of
the
candy manufacturing business op¬
erated by Clinton Industries, Inc.
(which see below). "
* A .A

publicity.

the

nature

their

opera¬

tions, odd-lot traders must be long
Threatens H«nse ■ InvestigatiOn
I trust that the -"routine"

profits

stud¬

the

all

well

trust

of a
the
Currency

attention certain fields which

would

justify

£eem

special

study*
A 1. The extent to which

delib¬

erate desire to affect the outcome
of the November elections

by arti¬

ficially "disturbing

the national
economy
played a part in the
heavy selling climaxed by the
present slump; and, as a corol¬
lary, whether this was part of a
campaign to remove margin limi¬
tations.

examination

"2. Careful

de¬

termine, if any violation

of law or
occurred through
in prohibited cate¬

selling

gories.

It would

its

de¬

virtual

commitments

pounds

tive
activity : in
the American
market,
adversely; affected the
market here, and whether it is
wise op fea$ibie; td Cdevige legis¬
lative or regulatory safeguards in

thi$ field.
v

;

...

A. J. SABATH.

of N. J.

lot

both

odd-lot and

houses

(but

not

round-

the

cus¬

tomer, who gains nothing and can
lose substantially), and the con¬
stant danger to a stabilized mar¬
ket from the speculative nature
of T odd-lot
transactions,
make
these practices

tical

concern

will

the

Boland, Boland,

Saffin

American

Ryan

Schermerhorn,
and

regulations
under

and the
they

which

gated constitute

existing
organic law

are

& Co.

fairly effec'ive

fluctuations

characteristic

the

ing attendance at the firm's train¬

ing school.
Mr. Davis enlisted in the Marine

Corps in
to

1942

and

assigned

was

.the Fourth Marine Division
anti-tank

officer.

awarded the Bronze
tion

Saipan

Star

Heart for wounds received

was

for

the

and

ac¬

Purple
on

Two

Jima.

ordered

RR.

first

Primary

mortgage

representing

Bank

six -

two

Markets

Insurance Stocks

1937-1938.

!R.

Funsten

Mo., has declared
15-cents

terly

dividend

s!cStromberg-CarIson Co.

^Mid-Continent Airlines

Co., St. Louis.
a dividend of

per

stock and

common

the $1

on
a

par

p ^Pickering Lumber Corp.

regular quar¬

56 %

cents

the $50 par 4J/2%

Trailmobile

per

cumu¬

Common

Preferred

lative convertible preferred stock,
both

Gruen Watch Co.

payable Oct. 1 to holders of
Sept. 20. The company's

capital

structure

revamped

was

offering made

two months ago.

fClyde Porcelain Steel Corp.

little

*Statistical Information

about
•

A \

vA/YA-AA

Eversharp Program of
Newspaper Advertising

future. A;.

near

vDrexel & Co. and Glore, Forgan
& Co., on Sept. 17 reoffered .an
issue

the

$5,000,000

airport

City of St.

prices

to/yield

bonds

Louis, Mo;; at

1.05%

to.

1.125%

March

1, 19541956. The group's high bid for the
issue at Tuesday morning's- com¬

petitive sale
114% .coupon.

100.638

was

Tor

•

Judge George

Moore at St. Louis, Mo., on
Sept. 13 approved the payment of
$17,218,520 in accrued interest on

issues

bond

program of news¬
advertising, supplementing
the company's regular newspaper,
magazine and radio budgets, has
been
announced
by Martin L.
Straus II, President of Eversharp,
Inc. /A
.'H 4
h.

the

Missouri

time dismissed

same

reorganization proceedings of the
Missouri Illinois RR.

Thompson;/

was

Co. Guy A.
discharged
as

trustee for the latter railroad and

the, bankruptcy was ordered ter¬
minated as of May- 31, 1944, the
date upon which the Missouri Illi¬
nois RR. and its rolling stock was
turned back to its owners. -AvA
The largest payment approved

Judge

Members

Louis

St.

Stock Exchange

ST. LOUIS 1, MO.
Direct

and

connecting

private

wires—

Chicago, New York, Kansas City,
Los Angeles
" /;A .A
Telephone CE 0282 "

Teletype SL 477

;The additional placements
resent

rep¬
increase in

r;substantial

advertising.on the Eversharp CA
'Magic Sphere" writing instru¬
ment.

The

ads
will appear
in
throughout the coun¬
try during the months of October,
-

are

interested in

newspapers

Convertible Pfd.

November and December.■) 1,A

& Common Stocks

[During October, 127

;

newspapers
123 cities will display the first
of the series of supplemental ad¬

vertisements.

Moore

was"

$11,159,-

November,

164

newspapers

in 160 cities will

the

ad, and in December

second

138 newspapers in

carry

718

Eversharp has acquired
additional plant facilities in Chi¬
cago, New York and Canada and

program,

has greatly broadened
organization. r'*
-

COMPANY

„

J As part of it§ general expansion

Metropolitan St. Louis

121 cities will

publish the third.

Pacific RR. Co. and its subsidiar¬
ies and at the

Company

$227,000

Federal: District

four

Request

paper

its

Locust

Street;

„V:-''

Saint Louis 1, Mo.
Central

8250

L. D. 208

St. L. 499

sales

" \

*CHEFF0RD MASTER
A

To Be Dealer Firm
GREENSBURG, IND.—Greens-

burg Development Corp. is engag¬
ing in the securities business from
offices in the News Building.
/

DAN RIVER MILLS
"Analysis on Request
'i .i

Peltasonjenenbaum Co.

Pell,

OLD BEN COAL

BUILDING

LANDRETH

with

will feature
a

ited

1946

with those
coal

'•

profits expected to
of last year.

continues to tax,

Recent refunding of

—

1945

L D. 240

earnings
favorably /

compare

Demand for bituminous

producing facilities^ -/A,-.AAAv
Company's funded debt re-

rduced fixed charges to .only. $49,000 a year.

The

~
.

•

' saving

•

;

is Equivalent to $1.15

per

194,037 shares of outstanding stock.

share
,

the

Stix: & Go.

INVESTMENT

The outing, which

Description

golf, will be climaxed

ST. LOUIS 2, M0.

Capital Stock

Teletype—SL 486

Request

SECURITIES

509 OLIVE

STREET

dinner free to members Lim¬
facilities

will

not

permit

SCHekCKpRlCHTCR COMPANY

guests.
Guest

speakers

ager

far

North Pry or Street, after complet¬

month payments for the period

Selling at approximately 4 times

Republican

* '.•//:* v'";"

sports editor and

boom-and-bust philosophy of the

party

;

be filed in the

Cleveland Bond Club to

promul¬ by

hedge against the wild speculative

Smith, Smith, Barney

Country Club.

that

Lynch, Pierce, Fen-

Beane's Atlanta office, 25

to date. A

was

Ji R;

Co.;

Milliken

business can be done.

suggesting

consummated

templating some financing and a
registration statement is expected

Hold Annual Fa!l Fete

associated

Co.; F. W. Porter, Estabrook &

Co.;

public and clothe them with pub¬
A completely stable
market is, of course, no market/"
where profits depend princinally'
CLEVELAND, OHIO—The An¬
on speculative buying and selling,
and as long as stock exchanges nual Fall Party of the Bond Club
exist I am not proposing that they
of Cleveland will be held on Fri¬
be so regulated and regimented
day, Sept. 20 at. the Oak wood
I

bonds,

lic interest.

that

-A'.vC'A

R. Currier, Mueller & Cur¬

B. Kirk, Harris, Upham &
Co.; J. F. Musson, B. J. Van Ingen

become

on.

[The George Muehlebach1 Brew¬
ing Co. is reported -to' be con¬

matter of prac¬
the

agreement

Oct. 15, 1946.

composed of J. William Roos, MacMiller • & Co., Chairman;

amplify this
Bride,
last paragraph. The borrowing of
W. H;
stock by odd-lot dealers to ful¬
fil commitments, the substantial Co.; C.
rier; J.
profits accruing from such prac¬
tices

profit realized

taxes

■//-

sale

GA. —William

has

with Merrill
ner

the International Great

Northern

oyer

and

odd-lot

The

Jr.

the sale. The stockholders will

Sept.
26, and it is contemplated that the

Sincerely yours,■

paid

factory/ These

this issue up

and public

vote

your

reportable as. short
selling cuMef" present rules, ad¬
versely affected the market, with
The Bond Club of New Jersey
a
detailed study of practices in will hold
its annual Fall Field
this field, and whether or not it is
Day for members only at.; the
wise or feasible to devise legisla t
Rock Spring Club, West Orange,
tion, or regulations under existing N. J,, on Sept. 27. The day's events
law, for additional safeguards in will feature .golf,
riding, swim¬
this field.
ming, soft ball, horseshoes, card
games, luncheon and dinner.
Possible Danger From Odd-tot
The Field
Day " Committee is
Transactions
1
should

for the maturities

bonds.

included payment of

total of $1,610,000

those

stated, hove -a ca¬
produce
75,000,000
candy annually. It is

ward

anticipation

was

trading, \ not

Louis

St.

American people
deserve to be
fully informed, I am making this
letter public, c I shall look for¬

5. The extent to which

each

est

was

sion

cer-,

Davis

record

violations of Fed¬ factor in the sharp decline of ex¬
eral Reserve margin rules through change
prices; and the timing
prohibited bank loans, for specu¬ makes it equally probable -that
lative stock purchases on margin -political repercussions were care¬
occurred, with consequent unset¬ fully - calculated
a;nd
premeditling of ; the market by forced ta ted^n^y;/;...:> ffy'i A/.A;• ;A vrA -Sg A
liquidation of margin accounts.
; t Because
IA believe
that
the

with

per

$4,900,000 after broker's commis¬

major

mortgage

the

Lyncb Firm

ATLANTA,

payments which brought inter¬

year,

Chase

the

short

cover

was

paid

this

estimated that the aggregate pur¬
chase price will be in excess of

tainty that urgent selling by oddsale

National

and

termine if any

A. The extent, if any, to which
operations from foreign accounts,
particularly 7; from
areas
where
gold differentials favor specula¬

cents

plants, it
pacity to

such

seems

rate

July

Candy • Company
Candy Co. of
St. Joseph, Mo. This includes* the
two
candy factories in Chicago,

trading which is
inherently short of the market,
make it imperative that the whole
system of odd-lot brokerage
should be carefully examined.
It

the

over

and

increase of

AAAA. ;v.AAAa'-AA.

division

would

lot traders in order to

examination

cents

Industries,
Inc. 1 has
agreed^, subject to. stockholders"
apprpval, to sell the plants, * ma¬
chinery and inventories used in

justify the
most eareful scrutiny of the SEC
with a view to possible regulation
air prohibition; at the same time,
a
very heavy volume of odd-lot
trading, in proportion
to total
transactions—sometimes amount¬
ing to 40% or more in an active
day—and the relatively invisible
nature

first

Ry,

order also

value

par

Aj Clinton

/without
the
personal
knowledge of. the bona fide owner
stock,

stock,. payable' Oct.

distributed

use,

the

directors

the

1944-

paid

representing two six-month

"borrowing" shares of stock
ajnd the payment of premiums for
its

due

ordered

20, 1946. This is

that the practice

seem

interest

331,290

$117,705. on the New Orleans,
Texas & Mexico income bonds,

capital

dates.

mortgage bonds. A total of $4»-

:1c

the

Missouri
refunding

next, to holders of record Sept.

•

3. Careful

10,

when

the
and

Clinton Industries, Inc. declared
a quarterly dividend of 40 cents
per

Merrill

Orleans, Texas & Mexico

Department

the

first

New

April

the

„

11938-1939
Pacific

due

Sept.

anti¬

instalments

was

On
4.

interest

1$45

commis¬

011

:!:

The Premium Practice

of regulations
short

of
t

examined

Justice.

;

offer

comprehensive list of all factors
involved, J should like to draw to
your

division

Con¬

/Without pretending

•'

■

a virtual mo¬
field which might

nopoly in the

pelled to urge the necessity
complete
investigation
by

gress convenes.

not

Their

fact, that there is

studies of stock movements in the
last two months I shall feel inr*

the

depend,

market.

peoples' shares. I am
not overlooking the large capital
required for odd-lot operations;
the capital required is so large, in

pertinent fac¬

Banking
and
Committee as soon as

the

with other

tors; in the absence of some assur¬
ance from you for comprehensive

House

sions alone, but on actual trading

ies of the Securities and Exchange
Commission will take full cog¬

nizance

short

•••

ceeds, estimated at $5,856,125, will^ 1
—T7~~r~r~~"——, "/
• '
used by Chase Candy Co. to
525 which retires two six-month

that field there is wider freedom
and less

15-year sinking fund debentures, 100,000 shares of $20 par
5% convertible preferred stock and 170,000 shares of $1 par common
stock.
It is expected that F. S. Yantis & Co. of Chicago will head a
group of underwriters who will offer these securities. The net pro¬
be

A:;A;''"AAf

position.

Chase Candy Co., St. Joseph, Mo., last week filed a registration
with the Securities and Exchange Commission for $2,500,-

•of odd-lot

1 have been deluged

by letters,"-telegrams, and tele¬
phone calls, most of them sus¬

taining

very

those

000 of 4%

encouraged the growth of volume
transactions because in

"Since my telegram to you, and
your answer,

sales

but

*.;

StaWhierVt

(Continued from page 1456)
be
rationalized
ments,
cannot
away in simple terms of emotion.

■-

••

will
a

include

player

man¬

of the Cleveland Indians.

Landreth Building;
Bell Teletype

SL 456

St.

Louis

Mo.

Garfield 0225
L. D. 123

St.Louis I.Mo.

Members St. Louis Stock Exchange

•

V "

"I *

THE COMMERCIAL & FINANCIAL CHRONICLE

1466

Municipal Bond Course
Offered at N. Y. U.
The

Payment of All Interest Arrears—
$364,000 Sinking Fund

Savoy-Plaza

Savoy-Plaza, Inc., will mail checks Oct. 1 to holders of its second
on record as of Sept. 20, covering a payment

income 3s-6s of 1956

bond. The payment, to be made out of earnings
for the fiscal year ended last July 31, will clear all arrears on the
issue.
In making the announcement, Hunter S. Marston, Chairman,
of $83 on each $1,000

stated that in spite of sharply

increased costs and no compensating
in

increases

hotel

tional

students

cepted.
The

will

now

will consist of

course

ries of weekly lectures on

$4,001,480 and there was available,

Cushman McGee

Federal

income

taxes,

profit of $1,093,833.
This com¬
pared with a gross of $3,650,308
and a profit before taxes, of $938,261, reported in the preceding 12
months. Mr. Marston added that

REAL ESTATE

the rate of occupancy was

accomodations

"a continuing degree of

profitable

Directors have or¬
$364,205 be used to

operations."
that

(Purchase

and

for

bonds

day from

5:30

se¬

Thurs¬

to 7:15 p.m.
of R. ,WVPress-

p.m.

prich & Co., who conducted a sim¬
ilar course at the University last
year,

Students completing
for

the

course

admission should be made prompt¬

ly at 90 Trinity Place.

car

last year or a new and improved

model,
the

B. G. Cantor & Co. to

Open New Boston Branch
BOSTON, MASS.—B. G. Cantor

SOLD

cipal amount, plus interest to the

take away
choice and

Steady Employment

The idea of

thinking about what

steady employment

is sometimes discussed these days
under the title "The Guaranteed

Members Now York Slock Exchange
Members New York Curb Exchange

Dlgby 4-4950

1-953

Annual

Wage." In a great
this seems to me a

ways

choice of words.

poor

a little too close to being
political phony. It suggests that
someone is in a position to guar¬

Trading Markets:

California & New York
I' Real Estate Issues

J. S. Strauss & Co.
Montgomery St., San Francisco 4

^EXbrook 8513

interested

offerings of Blocks of All

normal

human

desire

of our employees for
greater stability in their jobs is a
challenge to mass production man¬
agement. The production record
during the first year of peace has
turned the spotlight on some of
the

great 'difficulties to be over¬
We

Ford

Motor Com¬

certainly not today in
any position to "guarantee an an¬
nual wage." But progress toward
more stable employment is great¬
ly to be desired, and I would like
pany

are

part

come.

and

rate of pay.
the

wage

merely refusing to do so. I doubt
very much whether the American
wage earner really believes that
anybody can guarantee security in
this world/ What he really wants
is steady employment at*a fair
This

Tele. SF 61 Sc 62

annual

the

part of the free
American tends further to con¬
centrate automobile production in

the year.' Further¬
more, it makes it necessary for
the
industry to
stop
working
part

one

installs

while

machines,

new

things
employment.

level

them

these

against

work

briefly

some

work

Both

peak

toward

em¬

ployment—and when you have a
situation of that kind, you must

number

larger

employing
people for

rather than a
smaller
number
of
people for
longer periods. Seasonal demand
creates seasonal production, which
results in seasonal employment.
periods

can

start

be done

stabilized employ¬

automobile industry.
so,

the

first

however,

let's

mild

days /of

around each year,

come

the

people begin to think
travel, vacations and the
open road. They head for automo¬
bile salesrooms and start shopping

for

It is unlikely that people are
going to change much in this re¬
spect. In 1935 the automobile in¬
dustry tried to lead human nature
into a different path by moving
its annual presentation of new
models

from

first

the

week

January to the early part of No¬
vember.
This
produced
some
change in buying habits, but peo¬

ple for the most part have con¬
tinued to buy their cars when
winter begins to thaw out and

spring is in the air.
This

The

extent,

automobile

makes

is,

- ■

Fred F. French Investing

N. Y. 6

cause

the

go into a car. It buys
parts from others.
For example, the

from

ers

whom

toothpicks

great

locomotives.

■

definitely be classified

can

small businesses.

/'Many of these suppliers are, in
turn, served by other suppliers.
One
of
the • companies - which
makes our speedometers, for ex¬
ample, is itself an assembler, buy¬
ing such things as gears and
cables from

other manufacturers.

This

speedometer company alone
by some 200 suppliers.
When you begin to add it all up,
you discover that the problem of
stable employment in the automo¬
bile
industry really* involves a
is served

cross-section

American

one

what is, in

effect, a great market

place for American products. The
Ford Motor Company is itself a
market for 600 to 700 million dol¬

supplies

of materials,

worth

services furnished each year

thousands

business

small

for one, think that this de¬
centralization is a fine thing.
I
I,

believe in
the

small,

because

the

encouragement of

business

independent
believe

the

great

—

REAL

Broad Street, New

production and reduce the

consider

ESTATE

this

importance.
If what

^7 '

the greatest

do is to be in1 the

public interest it must
For if

costs.

cost

who

can

mean

low¬

it increases the

producing automobiles, it
will lower the standard of living
by reducing the number of people
afford to buy motor cars.

The market for

and

—

shrink.
s

V:5

The

have

our products will
employment will

fault

seen

anteed

with' most

for

business

tomobile

plans

in the

Hotel

ji-•

i j1

Sherman 5/57
.

V ;

W. S.

simply that'

increase in
Unless such
a plan would clearly insure a sub¬
stantial increase in productivity
offset the in¬

in economies to

the result would be

simply to in¬

the cost of automobiles. To

crease

that extent, the standard

a
..

Americans

all

plan.

!■ It

that

in costs, it is obvious

crease

including

at Ford Motor Company

for one

of thousands of

small. For example, it

OFFERINGS WANTED

-■

■,

argued that

competing automobile compa¬
required to do the same
thing, no one would be hurt and
everyone would benefit. I do not
think the American people would
ever accept any plan which would
regiment the automobile industry
and thus destroy the tremendous
benefits, to the public of tough
competition. Instead of producing
nies were

and

lower

costs

cars

for

at lower and

and

greater

quantity production

100 North La Salle St. Bldg

Savoy Plaza 3,1956 W.

Sherneth Corp. 5%, 1956 W. S.

Brooklyn Fox Corp. 3,1957 W. S. Wall & Beaver St.
Nat! Hotel of Cuba 6,1959 W. S.

333

Building Corp.

La Salle St., Chicago 3,

Tel. Central 4424

•

POSITIONS WANTED

40 Wall St. 5,1966 W. S.

OTHER CLASSIFIED ADS

Amott,Baker &\CO.
Incorporated

"111.

Tele. CG 660

150 Broadway
Tel.

-^'m'

HELP WANTED

4y2,1951W. S.

Units

FIRST LA SALLE CO.
IT So.

Beacon Hotel 2-4,1958 W. S.

BArclay 7-4880

SEE

New

York 7, N. Y.

Teletype NY 1-588

all

FOR

B'way Trinity PI, 4^4,1963 W. S.

re¬

who

those

to benefit from such

,..\
is sometimes
/

of living

would

duction depends upon ever lower
costs. Lower costs make possible

not allowed to forget

large and

Lott Hotels Co.

au¬

they guarantee an
manufacturing costs.

SECURITIES

ji. Knickerbocker Hotel Co.

so-called "Guar¬

Annual Wage"

depends upon the performance
other businesses—

But

HAnover 2-2100

American

the

cars

people.

and can

of individual

minute that what we do

York 4

sound plan to provide

people, we would find ourselves
producing fewer and fewer cars at
higher and higher costs for fewer
and fewer people.
Success in the field of mass pro¬

power

initiative.

are

constantly in

stable employment must in¬

shrink

any

two

'•

First,

cost

have

considerations

mind:

crease

many

And at least 85% of all these sup¬

pliers

prac¬

tical

great

buys

But I

should

men.

Association

was ever

by ignor¬

think

really

and

Incorporated

promises what it cannot deliver
and merely makes political capital
of the deep human anxiety of all
of us for greater personal security
can
only lead to delay and dis¬
appointment.
:r

seem

Pfd.

industry

ing the difficulties—and I am sure
no human relations
problem will
be solved that way either.
It calls for hardheaded think¬
ing; Any softheaded idea which

would

Seligman, Lubetkin & Co.
SPECIALISTS

any way except
No engi¬
neering problem in the history of

—

City—all units

York Security Dealers

treated

things that

Ford Motor
Company has 2,853 major suppli¬

productive

Members New

duced

Teletype NY 1-1942

—

big business, but with a great
many little businesses—thousands
of them.
We are dealing with

people

cars.

with the utmost respect.

our

Waldorf-Astoria Hotel

Dlgby 4-2370

new

Now this problem, which I have
over-simplified in order to be
brief, is too important to all of us

'
The American consumer—with-

business.

American

We will need to experiment and
au¬

assembler.

company

of all

few

lars

89 Broadway,

without

industry. We are not dealing with

problem. It makes the manufac¬
turing of automobiles a seasonal

of the con¬

Tudor

the

gone

custom

Commodore Hotel, Inc.

SIEGEL & CO.

and

have

to make difficult decisions.

manufacturer

large

whole

-■

understandable

fundamental

one

dollars in wages, the
has lost millions of dol¬

lars,

REAL ESTATE

BONDS and STOCKS

The Role of Increased Production

cars.

our
capacity.
Everybody has suffered as a re¬
sult.
Our
employees have lost

Decentralization of Parts

from

When
March

look at the problem.

than about

the automobile

•

about

percent

solved by catchwords

American

reached

tools and dies to produce the new

variety of materials and parts that
go into its.cars.
Another 3,000
suppliers furnish it a variety of
the goods and services! necessary
to
run
its
business—everything

are

to discuss

Before

take

It is misleading.

in the

ment

many

It comes

antee

toward

face when

have

sixty

company

own

which has prevented our
making the number of cars and
trucks we planned to make
during
the past year. Strikes in the plants
of our suppliers have kept our
production throttled down to lowgear stops and starts. At no time

better car,,/:;/•/; / ;i:,'vv
It will be obvious that this pref¬
erence

our

plants

millions

very

siderations

is not "labor trouble".in

American in favor of a new and

Producers

(Continued from page 1454)

SHASKAN & CO.

Co., New York securities firm,

The Guaranteed Annual Wage

IBS

into

him

There is another factor.

Tht> G oal ol

Boll Teletype NY

force

uniform mold, he is going to con¬
tinue to cast his vote as a free

tomobile

Firm

prefer
change,
prepared to
from him his freedom
a

someone

shire Street.

AO EXCHANGE PL.,N.Y.

regularly

model. He likes

will open a branch at 161 Devon¬

date of

will

new

and unless

shorter

purchase.

au¬

Given a choice of a
just like the one he had

tend in the direction of

fund at prices not to exceed prin¬

QUOTED

another

peculiarity.

sinking

industry—has

Both

the

credit will receive
two hours credit. Applications for
graduate

BOUGHT
vf

tomobile

models.

will be lecturer.

to indicate

that the future seems

dered

91.41%,

let-down in the

for

demand

SECURITIES

there

that

ac¬

;^Vr;vCy.',-:. ;CVV>(Av

■

prices, the company's gross in the
12 months ended July 31 reached
before

York

University, 90 Trinity Place, New
York City, will present, beginning
Sept. 26, a study course on general
obligation State
and municipal
bonds.
Registration for the course
formerly was open only to those
heretofore enrolled in the school,
but a
limited number of addi¬

restaurant

New

Administration,

ness

out whom there would be

new

of Busi¬

School

Graduate

Thursday, September 19, 1946

INSIDE BACK COVER

and

Number 4526

Volume 164
*

greater quantity production makes
possible lower prices. No manu¬
facturer in

a mass

production in¬

dustry is interested in any pro¬
gram involving higher prices for
fewer products. Nothing gives the
mass
production manufacturer
greater dis-satisfaction than rising
costs and rising prices.
The tragedy of the period of
strikes through which we are still
struggling is the very fact that
spokesmen for labor, anxious to
show their ability to force con¬
cessions, have succeeded. But, in
the process, they have stifled pro¬
duction—and
it
is
production,
more than anything else, that has
always lowered prices, always in¬
creased buying power, always de¬
feated inflation. The competitive
scramble to reduce the cost of
things so that more and bigger
'

markets

can

won

is the force

which leads to an increase in the

standard

living of the wage
all the, rest, of; us.
to
increase

and

earner,
"When

scramble

■

is accompanied by a cut in
production, it leads to inflation,
lower standards of living and the
wages

need

hour.

re¬

are

this country as a result of our ca¬
pacity to produce.
One out of
every five Americans owned an
automobile
prior to
the war,
whereas only one person out; of
22 owned a car in France, and
only one in 23 in England.
One in every five persons in
this
country has a telephone.
Prior to the war only one person
in 18 had a phone in England and
there was only one telephone for
every 30 people in France.

...

-V

♦

•.

Just how this will be done, I do
know.
But we at the Ford

lions of dollars in

things we
The second

in short, are direct¬

have to divide.
thing which it seems
keep in mind is:

to me we must

Any sound plan to provide moye
stable employment will require
jresh thinking on the part of all
of us.
.' '.
When a complex and difficult
engineering
problem
seems
to
have no solution, the fault may
lie in the fact that we keep start¬
■

ing from the same premises and
thus keep

reaching the same con¬

- management
and labor
undoubtedly have to adopt
new points of view if we are to
approach even in one industry,

Both

will

new

horizons in level employment.

The problem, as we have seen,
boils down to this: We must learn
how

increase

production effi¬

which

gineering, but labor must make

money

want to do.

seems

to do what

solution to the problem
to lie in two related goals:

There must be great forward steps
in the productivity of machines,
and there must be
the

productivity of

increase in

77"77

men.

take

en¬

are

They spring
goals is obvi¬ achieve our goals.
from reactionary thinking.
They
ously the responsibility of man¬
are based on the assumption that
agement.
The productivity of this nation, we have gone as far as we can go
The first of these

which has made it richer than the
dreams

men

100

years

that

and

security lies in "made"
Actually, it is increased

work.

output per man through the effi¬

fore the war, an Englishman had
to work five times as long as an

has been chiefly a result of
development in this country cient use of machines which has
production techniques— always brought higher wages and
notably the assembly line idea; shorter hours and has created
special-purpose and multiple-op¬ more jobs by opening up new
eration machines; and standardi¬ markets for what we make.
zation,-leading to inter-changeThe Use of the Strike ;
ability of parts. America turned

American

to the machine to increase its ca¬

Turn the statistics over and look

at them from the other side.

Frenchman

buy

had

and-a-half times

radio.

to
as

Be¬

long.

The

four-

work

-7

73 The reason is that we are great¬
er producers than either of those
nations. We produce more of the
world's goods. Therefore, we have
more of the world's goods to divide.
7:/ i 17: ^ 7 "77 7: <:
Furthermore, this is not a com¬
pleted process—even in America.
In 1914 the average man in this
country had to work 15 minutes
to earn enough to buy a loaf of
bread. By 1946 he needed to work
-

less than five minutes.

In 1914
hour

man

and

•

had to work

minutes

earn

eno,ughc to buy a dozen egg?. By
H E

RI'S

ago,
our

mass

It also

seems

that organ¬

cer¬

that

want and can afford.

ized
labor
must
apply
fresh
pacity to produce goods and have
thought to its use of the strike.
more. things. 777777.i7!77.-- 777 -7
There is no longer any question
It is in the manufacture of au¬
of the right of organized workers
tomobiles that we can see most

other free men

and

cannqt

ment"

expect the "Govern¬
"The Public" or some

fact-finding
with

board

come

solution to our problems.

mass

lower-cost motor

Y OU R

COPY

an ojjer to sell nor a solicitation oj ojfers to buy any oj these securities;
The ojjering is made only by the Prospectus.
. 7 ,
:
J

This advertisement is neither
\

;•

1 :

;

New Issues

)

•>

Airline Foods Corporation

cai& .777:;f7 7

Fundi Debentures due FeWiiafy ly 1962

5% Sinking

OF
v.-'

77' 7 7777'7 7'

e' 77 7

•

••

■

A\-

•

--vv

•

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: n 77"7'-':
;,7''7

7.;7
:

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•yw7>;'*<T ' r "7'
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*•

•

.l-'

Price 96% and accrued interest

-777 .77/77i777777-^7* 7/ -77 •'7 •••;'.• -77 '•

...

p /;/7

77-7;:77;v»:177

-■7 7 ■

•

}: grg

;■.

*->£77,. :•

7'7.7

777;\V77'"I.

***•.•. v

120,000 Shares
5%% Cumulative Convertible Preferred Stock
Par Value $25

'Price $25 per

<■*.».»

share 77K77777):7

Copies oj the Prospectus may be obtained within any State
jrom the undersigned only by persons to whom the under?-, v
signed may regularly distribute the Prospectus in such State.

The Nation's airlines

doing an Expanded day-to¬
day business and are laying plans for future expan¬
sion. As an investor, you'll be interested in the various
diverse factors which face this growing industry.
Our

*"j

"■i

Herridi, Waddell & Co., Inc.

»,»*

are

survey—"Airlines—1946"—analyzes 18 lead¬
ing companies. It discusses competition, problems of
management, labor costs, types of new equipment,
and passenger and cargo potentials.

Bioren & Co.

R. H. Johnson & Co.

Straus & Blosser

Maxwell, Marshall & Co.

The State Investment Coi

Courts & Co.

Estes, Snyder & Co., Inc.

new

A copy of

"AIRLINES—1946" will be mailed

re¬

Merriu. Lynch, Pierce, Fenner & Beane
W,;?' Underwriters and Distributors of Investment Securities

A. G. Edwards & Sons
;

H. L. Emerson & Co.

Clayton Securities Corp.

;

Uptown, Office: j3q
niiuiiiiiiiiii

NEW YORK 5, N. Y.
fifth avenue

Incorporated ~

HaD, Tattersall & Co.

First Securities Company of Chicago

Incorporated

September 18, 1946.

Reinholdt & Gardner

Reed, Lear & Co.

Stirling, Morris & Bousman
H.L.

Brokers in Securities and Commodities

70 PINE STREET

Amott, Baker & Co.

First Washington Corporation
-y,;-77'

Edward D. Jones & Co.

quest—without obligation. Address Department "F-2."

women

American ingenuity has faced
problems quite as difficult in the
field of technology and has found
answers of
great value and im¬
portance to all of us.
i. _7

substantial part of our freedom,

•

clearly what the 7 techniques of
production have done, for
the 50-year history of the auto¬
mobile industry is the history of
the assembly line.
But we face
today the need for vigorous fresh
thought and ingenuity in our pro¬
duction patterns.
Through new
approaches to automotive engi¬
neering and design, and through
invention
and
refinements; in
manufacturing techniques we
must somehow find, the road to

strike must

Throughout history it has beery
necessary for people to make the
choice between freedom and se4
ductive promises of security. To
give up freedom for these seduc4
None of us—in management or tive promises has
always been a
labor or government—can afford bad
bargain. When freedom goes;
to lose the democratic art of get¬
security goes with it. The offer of
ting along with each other^-of, every tyrant and every tyranny is
hopefully working toward 'com¬ security in exchange for personal
mon
goals through compromise freedom^ ,We wpuld make a bad
and agreement. We cannot afford bargain indeed if we as a nation
to substitute for a frank,- honest ever lost sight of the fact that it
approach to our problems, the is freedom which has made us
political habit of painting situa¬ strong; that it is freedom which
tions either entirely black or en¬ has
given more real security to
tirely white, depending on who ;is more millions of people than en^
doing the painting. Points of view joy it in any great country in thq
can
be honest disagreements of world. :
good Americans without becom¬
Anyone who deals bluntly with
ing ballyhooed emotional differ¬ the
problem of steady employ¬
ences of partisans.
ment will quickly face a sobering
Such problems as the need for
realization that the task is great
a
more stable employment can¬
and the difficulties many. I have
not, it seems to me, be solved in
expressed my feeling that thre£
any atmosphere of hysteria and
of the honest specifications for
prejudice. They call, • rather, for such a
plan are that it must have
an honest and sincere determina¬
the effect of increasing produc¬
tion to work out our difficulties
tion, it must be approached -with
together as free Americans.
an open mind, and it -must be en¬
Freedom vs. Promises of Security
tered into in the spirit of sincerity
Unless we are willing to give up and cooperation.
!

practices as featherbedding, and the slow-down lead
to decreased production—exactly
the opposite direction from the
must

of the

use

importance;
Any sound plan for a highly de¬
sirable goal like more stable em¬
ployment will be reached only
through honest, straight-forward
effort.
.

Such familiar

outi

petition in a nation of free peo¬
ple; The strength of America is
the strength of free men and wo¬
men
competing fairly with all
their energy and ingenuity for the
great rewards which are to be
gained by the production of goods
and services—goods and services

utmost

ers, too, must apply fresh thinking
to their policies and programs.

one

of working

sideration which I think is of the

Labor lead¬

major contribution.

cannot

burdensome and irritating it may
sometimes appear,

tainly have the effect of reducing
the standard of living of the wage
earner by raising costs.
As we approach this problem
there is a final over-riding con¬

problems,
we might do as much to raise the
standard of living in this country
during the next 10 to 25 years as
we were able to accomplish dur¬
ing the past 25 years through de¬
velopments in the field of ma¬
chine technology.
Management can take the ini¬
tiative in this' field of human

responsibility, however

our own

The indiscrimi¬

productivity.

nate

engineering

Americans

—the tremendous power of com¬

cause

have

the

domestic unrest and to cut

our

consideration

free

shirk

enemies of American freedom to

enough. We must solve the press¬
ing prbolems of the human factor
in production.
And here, again,
vigorous fresh thought is needed,
I expressed early this year the
opinion that if we in this country
would give to human relationships
the same hardheaded, objective

motor cars at lower cost and thus

the

has

But

ciency so that we can make more
earn

answers.'
7
There is at stake the very force
which has made this nation, great

Engineering Center.
improvement in the ma¬
chinery of production will not be

and

given

clusions.

But the right is being

entrenching labor monopolies. It
been and is being used by

Research

a new

become
weapon for the
acquisition of power. It has. be¬
come a method fot establishing or

problem

widely misused.
today a political

Company
consider
the
so challenging that we
plan, as you know, to invest mil¬

Real wages,

strike.

1467

■

not

Motor

ly proportionate to the wealth of
the nation—to the total amount

The

constantly to be

1946 he had to work less than half
an

kind of boom that busts.

minded how well off

THE COMMERCIAL & FINANCIAL' CHRONICLE

Bushinger Co.

;

Cohu & Torrey

THE COMMERCIAL & FINANCIAL CHRONICLE

1468

For the first six months of

stock.
1946

Southern

Pacific

decline of* 94.4%
able

for

showed

How Much Can Be Sold?

in income avail¬

charges

Federal

before

(Continued from

income taxes and amortization of
defense

projects.
On a similar
basis Southern Railway showed a
rise or sharp decline in prices for securi¬
ties the recent break in the market has uncovered a number of oppor¬
As is usual after a sharp

Such switching may be done to improve price
enhancement potentialities, to improve quality without sacrifice of
market prospects and yield, or to increase yield without sacrifice of
quality. Moreover, tax considerations have in recent years made the

tunities for switching.

—^prospect of switching much more
attractive to the average, investor

decline of 78.0%.

credit

tax

that

with

even

Federal

Largely

$16,480,000

was

able

Pacific

had

not

Abitibi Power
&

its operations it would
have shown a deficit equivalent
to about $2 a share for the half

right around and purchase a se¬
curity of nearly similar character¬
istics at an equally attractive price

Paper
1965

1st 5s,

tax

level.

One of the switch recommenda¬
tions that has been

Gatineau Power
1st

recommended

number of rail analysts in
the past week or so has been from
Southern
Pacific
common
into

3s, 1970

credit

solely

and

resented

curring

$1.21

rep¬

item

entitled

credits

tax

the

are
market

takeout, as

Province of

appraisal of those represented by

1927

S '5 j
and other
leading Security and Commodity Exchs.
MEMBERS

Exchange

shares as compared with an
advance of 45.8% for the Southern
Rail analysts gen¬

Pacific stock..

ber

fixed

charges

Armstrong Rubber Co.

Magazine Repeating Razor Co.
Universal Match Corp.

with

this

unknown factor,'

seems

earnings

the

part of Southern.

Berkshire Fine Spinning

{

Tennessee Gas & Trans.

those Xon

com¬

assumed

istics

good

the

Credits

character¬

in the

in¬

The one great advantage

Railway stock is

that in 3,946 it will

presumably

re¬

port share earnings close to dou¬

Railway

ble those of Southern Pacific even

the. Southern. Pacific

the

present

addition,

the

influence

1937

This

looked.

though this differential is mot

has

had

pected to be of long, duration,

j j

HA 2-6622

Railroad Bonds and Stocks

5^ V

Teletype ~

* -

con¬

the

came

war

decline

nounced

NY 1-1499

most

these

goods

the

attack
•'/, "

great

not

was

;

pflugfelder, bampton & rust

RAILROAD

Members

York

Neto

Stock

Exchange

§
,

SECURITIES

New York 6

Broadway

many

goods

Broad

New York 4,

prices,

were

not

When issued

N. Y.

profits discounted

OPA

Telephone BOwling Green 9-6400

some

Since

When issued losses assumed

Teletype NY 1-1063

war

Albany

Railroad Co.
.v.

•

YORK 5, N. Y.

Telephone REctor 2-7340

anything like
in

total

materials and many

products.
-

Despite

which

;

the

•

disappointment"

in the volume of goods
being pro-;
duced, the volume moving through

the

trade channels is expected to

our

in¬

too

large for the capacity jof
during
the
fall.

railroads

our

Freight
step

demand

next month.

Other

trade

expected

million

one

This

highways

cars a

means

are

soon

make

sure

the

while we have

war,

goods,

This

the producer to
he

has

problems

leads

situation.

Situation

Here, let

wholesale

current

ventories

are

Wall Street, New

notice some

and

BOwling Green 9-8120
Boston

;

1. h. rothchild &

Tele. NY 1-724

Philadelphia

Hartford

Member, of National Association

•

Securities Dealers,
4

}

TEL.

Inc.
-4

wall

HAnover

street

2-9072

nry. c.

Tele. NY 1-1293

HANOVER 2-1355

that
in¬

also steadily increas¬

are

now

than

they

than

were

100%

Exchange

SERVICE

Specializing in Railroad Securities

co.

retail

ing. Department store inventories

NEW YORK 5

ONE WALL STREET

York 5

to the inventory

of the facts. It would appear

been

BOND BROKERAGE

•

UNITED PUBLIC UTILITIES

Adams & Peck

going to

at the retail end.

The Inventory

Members New York Stock

MINE, INC.

our

that this traffic is not

going to clog

LONG ISLAND AIRLINES
GETCHELL

jto

week

that

be well filled. This is, of course,
what we want, but we want to

Mclaughlin, reuss & co.

Trading Markets in

Railway Co.

finished
* '
i >

now-experiencing

are

Boston Elevated
■

pro¬

seems

by the OPA in price adjustments,
prolong shortages of many

cost,
problems of shortages of mate¬
rials, labor'problems and price maladjustments. Goods which could
be produced were eagerly taken

Members New York Stock Exchange
120 BROADWAY, NEW

a; rise to
wartime peak

degree, successful.

consumer

Boston &

goods,

raw

produce extraordinary amounts

plagued

the production

will

control prices were,

been calling upon

SUTRO BROS. & CO.

the

costs, should they be forced by
the. unions*, combined with delay

available

recorded.

unlikely. Many ma-*
terials are still in extremely short
supply.
Further 1 rises
in ,C;wage.

at least, the attempts of

the
the

RAILROAD STOCKS-BONDS

Street

being

funds

take
seems

public will tend to

regard to

duction

goods were rationed and, during

SEABOARD
25

therm

the

will

future. It

>*(%■Goods

the

during the war, and thus no price
changes

GUARANTEED

liquid

With

cluding black market prices. Also,

Selected Situations at all Times

that
of

of.

price index is made

"official"

Bell Teletype—NY 1-310

Telephone—DIgby 4-4933

among

causes,

fact that this

) J j

Prolonged Shortages of Some

that of earlier wartime

reduction
near

:.';v

short supplies and
expanded purchasing
power have given us the strong
upward pressure on prices which
we
have experienced since 1941.
However, the advance during the
War

severe.

increase rather than to decrease.

Relatively

World

the volume of credit

likely

Pearl
" i

consurrier

when

hands

now

appreciable

not far different from that at the
,

earlier will

year

place in the

contrast

the current level of the pro¬

duction .of

common,

purchasing power are
concerned, it does not appear that

ac¬

with .a
wartime
peak of 247 (1935-39
rrlOO) the index fell to 152 in
February, of 1946. Following the
decline, production was redirected
into the output of consumer goods,
In

experienced.

and related

pro¬

periods. This was due to various

Specialists in

dollar will

tivity which the country has ever

Second
•L

figures of

Insofar

business

competition to get the consumer's

Immediately following the end
of

the

.will V have
to -Jae
watched more closely, and when

probably

was

has

preferences

greatly

72 WALL STREET

the
not

less than In former years.

time
i

for

available

purchases

relative

selling will be

goods. The total volume of goods

amount

the

process,
when 30-50%
in monthly sales over

easy

increases

the amount of available consumer

tual

selling goods, " there
tendency to neglect

less

reduction

is,: the

that

carry¬

stocks, in

more
of these practices to con¬
tinue after the situation
changes.
For I am convinced that the time
is coming when

second

major effect of the Second World
War on the position of the re¬

tailer,

larger

Because

been

the

notice

premium

take

training of sales forces for skilled,
personalized selling. If retailers
make mistakes
during the next
few, years, they probably rwill
make them by
allowing one or

-the | same

let

stocks.
ease

effect, from
the point of view of retail sales,
as
additional
purchasing power
in the hands of the public.
j
Then

Quality

cases,
to be given up
because
local dealers were unable to
carby

greatly reduced

was

can".

advantage
of
price appreciation. Hand-to-mouth
buying practices had, in many

during the war,, The total never
got much below $5 billions. The
present total is nearly $8 billions.
This consumer credit outstanding

and
ex¬

Van Tuyl & Abbe

Telephone

order

credit must not be over¬

consumer

Harbor.

NEW YORK

was

about 300%.

Both of

considered by now

are

to -have

how¬

be well in excess of

"common will

Dixie Home Stores

38%,

fairly certain that
Southern

and

sumer

of the Southern

ever,

able. to. cut

about

dustry.

Even

Over

reduction of 28.4%

of any

individual railroad.'

larger

increase

the

that

when

you can,

you

placed

Notice

point during the war, but the ac¬

has been

where

standards had to be reduced. The
gradual upward trend in prices

billions at the present

its

Pacific

completely obscures any estimates
as to
the probable 1946 earnings

TRADING MARKETS—

and

Pearl

produced increased to a new high

the roads

v.-

question of possible tax
carryback credits naturally almost
.

"getting whatever

billions. At

attack

the last ten years or so Southern

has Southern Pacific.

The

bonds of

non-callable.'

are

pared with

coupon

the securing of merchandise. Buy¬
ing became largely a process of

ing

large num¬
issues while the

extremely high
Southern

successful.

callable

erally
consider
that
Southern
Railway has at least as good
chances of hitting its old high as
.

LaSalle St., Chicago 4, 111.

Southern Rail¬

the

for

way

120Broadway, New York 5,N.Y.
So.

58.5 %

7.32%.' As

and

Railway have engaged
in
aggressive■ • debt
retirement
programs for a number of years.
In this respect Southern Pacific
had the "advantage of

off¬
set, however, a recovery to the
year's top would mean an advance

Ernst&Co,
231

Pacific

Southern

Both
Southern

has been the

return of only

Stock

operating profits.

Southern Railway stock afforded

Chicago Railways

York

The ex¬

same

the present dividend rates.
On a
$4 rate the Southern Pacific shares
at last week's close afforded a re¬
turn of 8.33%.
On its $3 rate the

4s, 4%s, 5s

New

points.

seven

some

change does involve some sacrifice
in income return on the basis of

Saskatchewan

Cons. "A" 5s,

not

with a
of the close last week,

circumstances re¬
followed procedures

keeping with the times. It has

has

entirely by the non-re¬

Southern Railway common

the

Harbor, these liquid assets totaled
something like $85 billions. Since
then, the total has expanded to

from

the

Naturally, earnings

about $65;

was

time

time.

six months and still came out with

earnings

these

has

•

about $227

Southern Railway, on the
other hand, accrued Federal in¬
come
taxes of $1,635,000 for the

year.

Under

Merchandise

had to place great emphasis
upon

the

common.

consumers.

The Hunger for

tailing

in 1937

rely

siderable

speculator! There may be con¬
advantage
to
taking
short-term losses if you can turn

them to

Power

result of the ad¬

;

tem, we have had the increase of
liquid assets in the^ hands of the
public. The total of these assets

outstanding.
Southern

government borrowing
from the commercial banking sys¬

$2.36 a share available
3,772,763 shares of stock
In other words, if

the

Purchasing

1456)

page

by merchants and easily sold by

vance

show only
for

present time, it is approximately
$103 billion.
Inflationary

Southern Pacific took
income
and

Thursday, September 19, 1946

TELETYPE NY jl-2155

Philadelphia Telephone — Lombard 9308

higher

1939-1940.;

Volume 164

Number 4526

-Mariufacturei's^ inventories

are re¬

ported to have increased largely
;

result

semi-finished. goods.

goods

accumulation

these

aro completed,
they may
along to merchants at a rate
greater than normal.

move
even

The

1919-1920 Experience '

This general situation, in many

respects,
which

followed

War.

reminds

one

the

First

that
World

The

THE COMMERCIAL & FINANCIAL CHRONICLE

that, sooner or later, goods are portant thing is for the, driver to
going
to
be
harder
to
sell. keep in mind that there is a turn
Adequate living profit margins ahead and never to be traveling
are going to be harder to main¬
tbb fast to make that turn when
tain. Standards of merchandising he comes to it;v
skill

enough for the war
period are not going to be good
enough for the period of more
strenuous competition ahead of us.

Ball Surge to Admit

the

retailer was
as fast as he
the change in consumer buying Marrton
could in 1919. Selling was easy;
At the end of the year, the pros- cannot be determined. The im¬ the firm
typical
building Up stocks

pect before the retailer

Ely Now With

Newman Go. in Colo.
V (Special

/CLEVELAND, OHIO—Ball,
moment, retail business Burge & Kraus, Union Commerce
is traveling at a
good rate of Building, members of the New
York and Cleveland Stock Ex-,
speed on a smooth highway. How
far it is to the turn representing changes,
will
admit John
M;
At

Thomas 1. Partes With Owen

good

1469

The

Financial

Chronicle)

COLORADO SPRINGS,

Owen

—rThomas L. Parkes has become
associated

with

Newmail

Mining

Exchange

Parkes

the

Mr.

past

limited partnership in
of Sept. 19.

& Co. of

Co.,

Broadway, New York

in their Research

Department. Mr.

'Co.

Nashville, Tenn.

was very

good, and many firms Were in¬
creasing dividends. Holiday sales
at the end of 1919 were the larg¬
est

experienced

ever

were

interpreted

as a

and they
verification

of the predictions

that retail busi¬
going to continue to be
As a matter of fact,
consumer
purchasing power., did
increase well into the year 1920.
An abrupt change in consumer
sentiment came in, the spring Of

ness

was

good.

very

1920. The, policy' ot extravagant
purchases changed to conserva¬
tive, if not frugal, buying. Be¬
fore long, the general price level
was declining.
1
•
It seems to me that three help¬

Willi! RIISIIESS

ful

observations

Inventories

ume

sales

"low"

the

DEPEND

UPON

SLENDER

THREAD?

the vol-

upon

and

made.

may
be

can

"high," depending

of.

trend

prices. In the second place, con¬
sumer
attitudes toward 'buying
can change very rapidly. Here I
should like to
tion

the

offer,

illustra¬

one

suddenness

the

change which took place in -1920.
In late 1919, and early 1920, we had;
the silk shirt

in this coun¬

craze

try. Some six months later," some
you will recall, we had the
demonstrations against the<«high,
price of men's clothing, taking.-the

nature of "overalls clubs" .among

who agreed not to buy
clothing until prices de¬

young men
more

clined.'
In

.V:V

the

v;-

third

place, the exper¬
ience following the First World
War made it clear that a general

Awwkmmmwm:-

decline in

prices can occur while
purchasing power remains veryhigh. Consumers did decide
greatly to reduce their buying
without
first
exhausting
their
liquid funds.
This i3 not to suggest that the
1919-1920 situation

was

exact

the present. Nevertheless, such fundamental • factors
f. as the expansion Of credit,; invent
parallel to

tory trends, price trends and con¬

psychology seem to be very
similar, and we should take ad¬
vantage of every opportunity to
sumer

profit by earlier experiences.
.Relative to sales, department
not high at
the present time. Since the end

store inventories are
v

the

ment

last August,

war

depart¬

inventories have

store

ap¬

parently risen about 33%. Should
timing in the present situation be
similar to that which followed the
First World War, the 'reversal in
consumer attitudes would come in
March, 1947. Thus," if you feel
present
developments are
following the exact 1919-1920 pat¬
tern, you should, in the words of
those who warned Caesar, "Be¬
that

ware

the ides of March."

Timing
Some

May

analysts

greater than those of the period
of the First World War, the re¬
of

prices,

sales

volume,

etc,, will be somewhat delayed.
Despite the fact that more than
twelve months have elapsed since
the end of the war,

shortages still
even yet, many of

persist, and
them

are

far

more,

acute

than

they were immediately after the?:
First World War. In view of these-

considerations,

one

might put the,

reaction from three to six months
later than that in the pattern
1919-1920.
In
other
words,

of
it

would be delayed from the first

quarter of 1947 to
fourth quarter.
From the

retailer,

the

third

point of view bf the

the

important

ture

point

on
a

which the whole struc-

flourishing business de¬

pends is often the brain
ality and influence of

power, person¬

few key

men.

The untimely death of any one of these
men

may

costly

be followed by

process

long and

of readjustment,

or even

by termination of the business, unless
proper

in advance,

v-U

continuing successful

department of

your

opera¬

business

upon

the slender thread of

you

confidence,

be facing today* if he had died

last week?

Could you immediately find a com¬

one

in whom

your ;

and for whom

em¬

your

ployees would work, efficiently? Would
delay in finding, the. right
your
the

business? Are

you

man

cripple

prepared to

pay

higher salary that it might cost to

fill the

vacancy?

Business Life Insurance cannot pre¬
the death of

key

man

your

organization; 1t can,"however, compen¬
sate for the loss

—

it when it is needed.
An experienced

key man's life? What problem^ would

—

bankers and customers would have full

vent

—financial, production, merchandising—

depend

petent successor

safeguards have been provided

tion of any

feel that since
recent wartime changes have been

action

Does the

Different

Cm he basis

and will, if you

hav
?

■

Massachusetts Mutual

underwriter will gladly dispuss with you
a

Business

fitted

Life

the

organization.

Insurance

requirements

asso¬

Rh'oades

Temple 1 Ely was formerly with Shields &

President of Thomas H.

become

Stock Exchange as utility analyst

Vice-

was

has

City, members of the New York

Co.,

Building.

Ely

ciated with Carl M. Loeb,

COLO.

program

your

■.'■-.■•■■.■■■

.<V-r

i*>~'"wfitivt* ..7 „.";/v,. '•'.:

'&,:va*•/"* vi

"iTHE

1470

Support the

jlvi'1

COMMERCIAL & FINANCIAL CHRONICLE

Thursday, September 19, 1946

Public

RED CROSS!
Now that the smoke has begun to clear from the

45-point crash
in stock prices, it might be well to see how the mutual funds have
fared. In the main, they have done well—certainly a lot better than
we suspect to be the case of the average investor in individual securi¬
ties. Most of the balanced funds began to "pull in their horns" sev¬
eral months ago.
The ones we have been able to check on had
increased their holdings of cash^-

20%-30% of

and its equivalent to

portfolio long before the
break came. Outright equity hold¬
total

40%

ings ranged between
60%. This, of course,
funds

balanced

and
the

gives

substantial

buying power with
which to take advantage of lower

amount

A few of the cross-section funds
had built up

fairly large cash

po¬

but, in general, this cate¬

had maintained its tradi¬
tional
fully-invested-position in
gory

YOUR INVESTMENT DEALER OR

securities.

equity-type

quent
the

closer,

franker

and

investment

the

various

managements

mutual

factual

investment literature which
them in their business.
resentful of

are

Deal¬

funds.

appreciative

are

ers

fre¬
with

contact

But

helps
they

tendency on

any

the part of mutual fund sponsors

equity prices..

sitions

tablishment

The

spe¬

exert continuing sales pressure
that is not in harmony with the

judgment

of; their

investment

managements. V
In

short, the investment dealers

have talked with

63 Wall Street

New York 5, N. Y.

overlook honest mistakes in judg¬
ment because they are quite aware
that in this business

less fully

invested.

It is undoubtedly true
if any,

that few,

of the mutual fund

foresaw the extent

agers

of the sell-off.

man¬

speed

(Who did?)

Their

creditable performance lies in the
fact that the balanced fund

man¬

had taken substantial steps

agers

are

deal¬

ing with probabilities rather than

;

scientifically determinable results.
But they don't want to be kidded.
Despite all the progress that has
been made in recent years there
still appears to be room for im¬
provement in the liaison between

ment

ion

advantage to
knowing where he
stands.
There is no longer the
possibility of distorting accounts
by fictitious writeups. Not only
must the property accounts on the
books today represent honest-togoodness assets but the common
have

good

this 25%

Almost

all

showing

will

show

the

last few years a consistently de¬
creasing ratio of debt to operat¬
ing revenues. This is especially

the investment fund managers and

true

preparation for such an even¬
tuality and that some of the cross-

the dealers.

because many companies have not

section fund managers

other's aims and problems.

lished

SELECTED

GROUPS Shares
^

Prospectus upon request
from your dealer or />

specialty

NATIONAL SECURITIES &
RESEARCH CORPORATION

Act has been held unconstitutional

of his

nature

maintained

investment

stated in

will be

the pros¬

If he should awake

pectus.

some

120 BROADWAY

morning to discover that his in¬

New York 5, N. Y.

vestment in the steel

suddenly
part

become

industry had

substantial

liquidated position—i.e.,

investment in cash, he

would have

good legal grounds for attacking
the management.

Apparently
ture

and

funds

by~

divergent

na¬

of the various

not

too_well. understood
investment dealers.
In

conversations

with

dealers

during the past 10 days,
met with

funds
INC.

this

purpose

many

our

Bond Fund

Part of H0LC Act Held

vestment in the steel

industry, he
has the right to expect that the

some

we have
criticism of mutual

managements for not hav¬

ing liquidated in advance of the
break, regardless of the nature of
the
fund
in
question.
Perhaps
the

mutual

fund

sponsors

are

Unconstitutional
three-judge Federal Statu¬
tory Court at Los Angeles in void¬
ing

the Government's seizure

the
Long Beach, Cal.,
Federal
Savings and
Loan Association.
Advices to this effect (Associated
Press) from Los Angeles Sept. 6
had the following to say regarding
the ruling:

"The Association*

was

taken

over

last

May by Chairman John H.
Fahey of the Federal Home Loan
Bank

Board, but U. S. Circuit
Judge William Orr, who wrote the

notice

"The
out

hearing.

Statutory

that

taken without

HUGHW. LONG & CO.
48

WALL

STREET,

NEW YORK

5, N

dealers

was

pointed
hearing is

es-

policies

are

now

than

sounder

the

past

increasingly

panies

;

Depreciation

find

reporting

com¬

their

stock¬

holders

depreciation charges on
virtually the same basis as they
are reported for income tax pur¬

poses.

The
These

Factor

which

has

regulation. I turn
regard

the

fatal defect

stitutionality.'

to its

con¬

;•

/ ■,r '■

"The Court said that at the time
Association
assets

and

since

were

1934

was

incorporated

valued

the

had

$7,500
same

it expanded to a
point where its assets were valued
at

$26,000,000 when it was seized,
being entirely solvent."

the

now

big

pro¬

through

come

to what I

feature

dustry is growing there is
better

chance

much

meeting
and
difficulties than

or cycli¬
impressive history of
which the utilities have

The

cal.

shown

gether

too

this point is
well known to
At

have

the

low

this
the

"what

continued

for

look

obvious

The

then

point?"
the

The

1945 there began

DEVONSHIRE

COMPANY

growth

from

war

Keystone Company
'

of Boston

NEW
6i

YORK

Broadway

CHICAGO
izo

South LaSalle Street'

being
electricity.
plants are
many parts
additions to

commercial

held

For

which

same

week

well

very

the

week

year

are many

ending

ahead of

6.5%

that

whereas

was

their

indus¬

around

now

from

eighty

different

seven

customers.

the

line

'"■f.tj

industrial

many

giving up their own
equipment to go on

are

the

central

station

companies. In presenting the stock
of

Scranton

few

Electric

months

ago

that while the

out

not

Company a
pointed

was

anthracite in¬

growing

one,

Electric

Company
is
counting on the load from that
industry expanding for some time,
due to increasing mechanization
and the closing down by the coal

mines of their own power plants
to go on the lines of the
company.
The commercial load is increas¬

stores and plants closed for

war

are

reopening. New en¬
being started. Better

are

standards

lighting are being
adopted. Modernization programs
being carried on, as for ex¬
ample in the restaurants where

are

better

lighting, better

better

cooking

facilities.

The

possibilities

domestic

load

vious

all

and

some

have

increased

the

are

customers

ob¬

most

domestic

are

nearly

every one
unfilled needs or

desires in the field of appliances.

Only

trickle of

have

come

new

appliances

the market thus far

and there is

a tremendous amount
load to be added. Not
only

new

will there be
tion

been

but

increasing satura¬

appliances

which

the market for

many

been

and

Some

current

new
are

these
as,

some

have
time

appliances have
b^ing developed.
are

big

users

for

example,
the
home-freezer units, air-condition¬
ing,
attic
fans,
electric
bed
blankets, clothes dryers, and the

types

individual

room

heaters.
There is still

importantly

preparations
to
this end
Some
companies which thought
they had adequate aggregate ca¬

LOS ANGELES

line

new

ago.

indications tha

and

ito West Seventh' Street

Company

meeting in New York

325,000
kilowatts they expected in the
next two or three years to have
96,000 additional kilowatts on the

domestic

business,

projected. Just

New Appliances

Japan

this point. Utility company
executives are making their plans

ness

field.
in

Good

lot of

obtained
work

has

new

busi¬

the

rural

been

done

getting electric service to the

farmers but the program has been,

del^ye.d by
,

difficulty, in

getting

their

the necessary materials and man¬
power. As fast as these became

plans for additional installations.

available the companies are
push-

pacity

Congress Street, Boston 9, Mass.

the

that

fact

load is going to grow

at a recent

stated

manu¬

illustration—officials

one

trial load

in¬

that

from

BOSTON

and
are

refrigeration,

the

STREET

cite

they want

out¬

to be a decrease
output due to the
plants. Interest¬

August 31 it was

management group.

the

answer

defeat

in kilowatt-hour

increase.

of which is managed independently of the

VANCE, SANDERS

The

country

outlook is excellent.

After

There

lofal investment dealer

the

terprises

al¬
though kwh output was decreas¬
ing. In August of this year, how¬
ever, the tide
turned and kwh
output is again showing a good

of either of these investment funds, each

your

manufacturing
being constructed in

question

the

are

use

New

time,

ably as the low-return industria"
business fell off. Accordingly, the

from

which

the

far
the
most
remu¬
nerative type, picked up remark¬

for prospectus relating to the shares

111

irrespective of the

processes

evolved

ing

been

cost.

becomes

and

Investors

be obtained

facturing

need

same

equip¬

general business level. New

alto¬

consistently re¬
duced and electricity is one of
the few items in the family bud¬
get which today is at an all-time

the

ian

may

Load
new

load

new

field

dustry

revenues

Prospectus

get

Scranton

rates

one

different

will

dustrial

strength and protection for utility

ies

stocks—the growth characteristics
of the utility business. If an in¬

in lies

IsJIassachusetts

this

out of the increased

generating

only some of
high spots of the improved
tection

closing

other

for

grown

companies

Growth

are

ingly enough, this did not mean
a
corresponding decrease in rev¬
enues.
This is explained by

F unas

Industrial

need

Furthermore,

required by the statute, 'and here¬

Write

the need is there.

in all three of the major
categories, industrial, commercial
and domestic. The utility compan¬

•

rehearsing.

management

the need for the

gradually

are

being retired.

growth

Court

notice

President and board under whose

point which came up
frequently in our discussions with

which

overcoming; its

Dave Ling,

and

was

ticular

Another

ability to get materials and equip¬

of the Consumers Power

notes

there is if it is stagnant

Hall

said the action

its

•

in the industry's history.
budget will not be met by

actual expenditures because of in¬

existing plants

Pierson

the

vestment dealers.

their

opinion, concurred in by Judges

job of clarifying the nature, pur¬
poses, and objectives of their par¬

Prospectus from your Investment Dealer or

budget of the

mortgage bonds
and have taken up the slack with

and

Part of the Home Owners Loan

in the minds of in¬

respect to mortgage debt

down

cut

much

fault for not having done a better

wares

67,500,000

serial

type funds, by
very
nature,
cannot
be
judged by these standards.
For
example, when an investor buys
shares of a high-grade bond fund
or of a fund representing an in¬

their

Priced at Market

the

reason.

same

The

had estab¬
positions

understanding

cash

substantial

for the

better

Both need to develop

come

for

considerable

already

are

time

making

1950

usage

com¬

in- ;

any year

The

ment

increase in

that the

are

find

you

the

65,700,000 to

New

can open a public
utility manual, almost at random,

and the chances

construction

The

their debt. You

pany

from

figure.

would

30%

ment but

companies have been
big increase in busi¬

largest
equip¬

electric companies for 1946 called
for the second largest outlay for

have been reduced.

with little br

ness

there

The

dividend restrictions which oper¬
ate until the equity has been built

the

electric

kw.

equity

representing a minimum of 25%
the
capital structure. If an
equity of this amount does not
exist, they have usually imposed

Debt ratios

1941. Estimated totals for

run

one

generating
capacity of the industry by 1950.
The installed generating capacity
of the country today is around
51,000,000 kw as against 44,000,000

stock equities

on common

;

recently expressed the opin¬

that

crease

in these assets. The SEC has been

insistent

head

manufacturers

the investor of

must

1454)

page

The

cost but there is the

willing to

are

cialty funds—those representing
an industry or type of security—
also remained

Distributors Group, Incorporated

theory of accounting has been
adopted. We may or may not
agree with the principal of forc¬
ing assets to be carried at original

stocks

Utility Stocks

(Continued from

THE BREAK

>?..

Today's Possibilities in

;

A PROSPECTUS ON REQUEST FROM

11tl.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

Volume 164

1471
r

•
(

Generally ; speaking,

ahead.

ing

the rural customers
than

rent

their

use more cur¬

cousins,

city

es¬

pecially when the farmers take
advantage of the many available
devices for saving labor.
An

aggressive campaign is being
on to improve street
and

carried

highway lighting with the idea of
making communities more attrac¬
tive and, more especially, of cut¬
ting down highway accidents and
crime.

Companies Are Highly

Gas

'■■■;■..

Regarded

•:.»

I
have
been
talking
primarily about the electric com¬
panies it would be possible to
cover
a
good deal of the same
ground in relation to the gas com¬
panies. For example, I might men¬
tion
that
Brooklyn Union Gas

7; While

Company has just had to issue a
no additional applica¬

notice that
for

tions

house-heating installa¬
tions could be accepted this season
because
of
capacity limitations.
This is in spite of the fact that
facilities were substantially ex¬
panded just a short time ago.
i
There

one

which

appliances in the

are new

field

gas

well

the
is

the electric,
interesting of

unit

companies have a measure
protection in the form of fuel
clauses in their
rate structures

securities. However,
more business that

which

little educational work

permit thejn to pass along
higher fuel costs to their 'indus¬
trial
customers. The installation
of

heat

will

which

homes in the winter, cool them in
the summer and properly humid¬

efficient

and

new

generating

equipment is helping, to promote
fuel economy. For example, one

is much
done

can

along this particular line with

and sales¬

manship. For example, I noticed
recently an analysis of the com¬
posite investment funds of twentycolleges and universities. Of

five

the

total

investments,
stocks

25%

but

was

than

less

explained that
have to "3% was in utility common stock.
pay 30d a ton more for coal than This does not make sense because
they had been paying. However, the utility commons are just the
this company has a lot of rela¬ type of issue that these institu¬
tively new generating equipment tions should be buying in big
with which it is possible to pro¬ quantity for the yield they afford.
utility

executive

common

his company expected to

duce

kwh of electricity from

one

lVs

that the fuel cost of gener¬

pounds

coal.

is going to be
in these plants only

electricity

ating

stepped

one-fifth

about

mill

one

per

serious.
companies in the

kwh.. Certainly, this is not

Many, of

the

West

Southwest

and

natural

use

fuel and do not
have to worry about the price of
coal.
Of
course,
hydro-electric
companies also are not concerned
for

gas

Institutional

boiler

with this item.

look

belittled. Not only are

cannot

problem is one which

trending higher but there
increasing
amount
of
"feather-bedding" which has been

some

have

those

such

mind

Eidson,
Pacific Gas & Electric, Southern

Philadelphia
Edison
and

Edison,
Boston

Detroit Edison. The two latter do
not appeal to me as

much

lot

as a

of others but I mention them be¬

wages

have

buyers like stocks that

cause some

in large

equity and which
preferred
stocks
ahead of them. In my opinion,
however,
neither
Boston
nor
Detroit have as promising futures,
as far as growth is concerned, as
do
some
parts of the country
which are profiting from decen¬
tralization of industry.
:■
For the buyer who is not in¬
sistent on companies with top in¬

gas and this is continuing as new

vestment

pipe lines are being built while
capacity of present lines is in¬
creasing; Wherever manufactured

ify them all the
of course,

year round. This,
provides just the kind

factor

load

panies

which

com¬

Many

seeking.

are

the

new

uses

for

been

developed during the war.

gas

Considerable
done

remains

changing over manufac¬
gas
operations to natural

tured

operations

gas

verted

The

have

natural

has been

have

industry

been

con¬

the

gas

result

stimulation of business.

Alleged

would

to comment

Factors

Negative

take

minute

of the nega¬

some

tive

propaganda which has been
going around as to the outlook for
utility securities. Even before the

break in the general market,
utility stocks had not been acting
well. Much emphasis was being
open

laid
ies

the fact that the compan¬

faced

were

with

the

squeeze

between inflexible rate structures

the

hand

one

increasing

and

operating costs on the other. To
be sure, the utility industry is a
regulated business and there are
definite
ceilings
on
earnings.
However,v the
same
regulation
which
prevents
unconscionable
.

profits also offers protection to
companies in assuring them a fair
return.
the

Because

about

being

was

quarters,
have

many

two

through

the

Southwest

in the industry.

men

take

firm allowed me
for a swing

weeks

Middle

talk

West
and
with
utility

executives and to learn
of their problems

company

reasoning
utilities

stressed

Accordingly,
to

I felt I would like to
opportunity to talk with

of the

some

line

prospects for

poor

first-hand

and of

their views

the indus¬

try outlook. In the course of the
two weeks I visited between fif¬
teen and twenty

different

compa¬

nies,, widely diversified as to size,
location, and type of service ren¬
dered; I received expressions from
these executives which were vir¬

100%

tually

optimistic. I do not
that they are not
the problems they
but in general, they

infer

mean

facing

the

that

felt

creeping into the utility indus¬
try. On the other hand, even as to
wages
there
are
compensating
factors, important among them the
increased efficiency of operations
which utilities are developing in
departments. I have been
generating plants where
was almost necessary to make
search to find the men working

many

small is the staff in a modern

—so

plant which is making full use of
labor-saving devices. Then take
the item of reading meters. For¬
a meter reader had to find
his way to the cellar or some out-

merly,

of-the-way part of a house; now
companies are putting meters on
the outside of houses. Thus, the
meter reader

fast

business which

sight

are

reasonable
costs.

already

are

ample

offset

amount

increased
i

Favorable

Federal

Tax

"The repeal of the excess
tax

in
any

has

done

much

Status

profits

help

the

costs

house

one

standing there

stocks

lot

are a

which

around

well

are

worth considering. You have right
here in Ohio four large compan¬
ies

whose

fered

shares
the

months.

have

public

the

been

the three

case

of¬

recent

re^

stocks

by
National
Power & Light have promise for

Public Service of Colorado earned

after

$700

the

last

mile

for

nine

the

that

times

figure

Light now

yielding close to 6%
selling about .ten times ex¬
pected earnings for this year. As

5%. This
company serves a territory with
better-than-average growth pros¬
pects and the earnings are large
enough to warrant talking about
yield

and

around

basis

dividend increase in due course.

regard

highly.

very

its

and

water

gas

earnings

subsidiary

of $1.30 per
recently been avail¬
to

and

basis

generating equipment, which
materially reduce costs, and
completed the conversion of
its artificial gas properties to na¬
tural gas. This is always a source
of additional profit.
V

new

has

again,
recent
eight or
and the
yield has been well oyer 5%.
;
'
been

this

dividend

will

here

and
have

times

the. dis-

only about nine times mos^t re¬
cently
reported
earnings.
This
company is
putting- in a lot of

included, I believe this company
show this vyear from $4 to

nine

can

$4.25,
prices

has

able

traded

are

annum,

I refer to

With

over-the-counter.

paying

Indiana

Service

stock

Illinois Electric & Gas,

Central

neighboring
state
of
a
utility whose stock

your

Indiana

third

the

tribution, Birmingham Electric, I
am less enthusiastic.

only
figure

I could go

at length naming*

lower

price-earnings companies whose shares are in¬
prevailing with teresting and attractive and the
Empire District Electric Company fact that I have not mentioned a
stock. This company earned $2.65
particular company is by no means
in the 12 months ending June and
an
indication that I am not in¬
has been selling for only seven or terested in it.
Obviously, limita¬
eight times this figure. The yield tions of time make it impossible
ratio

even

this

5Vt%
some

been

has

case

6%.

and

been

There

between

has

which

prejudice against this issue
has always had
and

from lead
in

zinc

mines.

company

I put

aggressively bringing in new

and

diversified

Another

industries.

good 1 stock
with

recently
yield

dividend

of about 6% is Southwestern Pub¬

Service

Co.

companies where the distribution

lic

has been completed all the stocks

also

laid

stress

the

in
the
operatingfield. Of course, there^

is still

very

good istocks

a lot of money to be made
holding
company
securities.;
However, the recent break in the?

pany's territory this summer and
came
away
convinced that this
lead and zinc angle have been
over-emphasized as the relative
importance of this load has tended
to decrease and that territory is

available

the

opportunities

heavy load

couple of days in this com¬

all

around.

are

have

because of the fact that the com¬
pany

discuss

been

for this stock,* once excess

Earning capacity
profits
taxes are entirely eliminated from
are
selling f at substantial
dis¬
the 12 months' statement, should
counts
from •; original
offering
prices. For example, right here be around $3 a share and the re¬
in the city where we are meeting cent price has been around ten
is the Columbus & Southern Ohio times this figure. This company

market

has

temporarily

thrown
liquidation and
integration plans of some of these
companies. In this field I have.,
into confusion the

tried to keep away|
shares that might be ad¬
versely affected by the operation!
of leverage i.e., I have avoided;,
the heavily pyramided structures;1
consistently

from

Among the better grade of hold¬
ing company issues,
there arq
many

these

for

attractive opportunities bull
would
constitute material
talk in itself.
/
\V

-1

Conclusion

;

I would like to conclude

line

might
these

com¬

concerned

made

review

the

but

Sometimes

less

things if

careful

and / by i t 1940

war

survived.

pany

what

about
more

has

hap¬

pened in the days gone by.

trip I men¬
tioned, convinced in my own mind
that
utility companies can still
look forward to good earnings. In
many cases dividend rates can be
increased in the next year or two.

Already,

there

has

been

long

list of dividend-increases but still
more

are

panies

Some

come.

com¬

have

delayed making in¬
earnings, would
warrant because of particular de¬
mands. which they have -for cash
which

creases

the

moment

which

reasons

due

Dealers

and

;

Opportunities

field

broad

dealers

some

obtainable

curities, I

very

and

which

for

senior

se¬

finding that institu¬

not

The

buy

fashion. I

tell

they

respect to higher fuel prices, most

are

two

is engaged and which
conceivably might release to the

company

some

impounded but

funds
even

present

without this

the ^tock has merit.

'' '

Attractive Issues

Some

the

recent

banks

using these

other

offerings

declined

levels.

in accounts where they

riot'restricted by la\v to senior

Scranton

compara¬

have

not

good

buying

Electric

stock

looked reasonably priced when it
was
offered in May on a yield
basis of about 4.4%.

Recently, we
have been able to buy it to yield
6%. This is
with

very

structure.

old

line

You

New

issues

CENTER OF A

RICH, GROWING

Public

rapidly growing

for

are

Raw

by. Best sites

plants employing

100 workers

ma¬

are

up to

found in the

and
con¬

small

siderably cheaper than their of¬
fering price of only a little while

gent,

are

terials

MARKET

capital

Hampshire
Power

ship from the center of

the rich and

Southern market.

company

conservative

Such

Maine

ana

one or

company

rising

fully

thinking especially
litigation in which the

Service

officers

been

is intrinsi¬

of the rate

Central

Trust

yet

stock

cally desirable and has

common

are

issues.

com¬

features which might make it in¬
crease
in
value
in
interesting

increasingly receptive
offerings of the better utility

can

Electric

coming into the
public for the first

has

distributed.

have

of these utility op¬
erating companies' commons at
the bargain-counter prices which
prevail today. In view of the low
yields

time

now

fared very well in the market and

Stocks

for

Gas

is just

tively

opinion there is

fertile

offering

Cincinnati

hands of the

overcome

Common

paid. Ohio Edison stock has been
yielding from 5%% to 5%%.; The

Some

course.

$1.80 and this is not neces¬
sarily the maximum that can be

technical

will

rate Of

mon

I returned from this

towns

where there is

native-born

manpower.

reservoir of

friendly, intelli¬

Write Industrial Develop¬

ago.

^Looking for a/moment at, some
of the stocks which have been oh

months ending the future. These are Carolina;
.June and could.;recently have, Power & Light selling for only?;
been bought (on the New York
11 or 12 times anticipated
earn-J
Stock Exchange) for only eight ings and Pennsylvania Power &
$3.85

stocks

do his work

from

three

and preferred stocks have .jlong thousand feet.
it been regarded as some of the more
had
been:Ureduced Uto $150.' In¬ ■desirable issues which could; be
cidentally,'it is interesting to see purchased. The Dayton stock also
that the wages paid these crews
has
been
yielding nearly
6%,
showed a particularly big increase based
on
an
assumed f; dividend

tions

respect to the important items of
costs.
For
example, in

building

exceeded

companies, not

some

•

have

not

the

distributed

merely
Only recently, I saw a very en¬ Electric Company. The common is located in western Texas and by saying that I feel the outlook
lightening study of the labor costs stock of this company can be New Mexico—areas having much for the utility companies is prom¬
of setting poles by a company in
bought to yield close to 6% and better than average growth pros¬ ising
and
that
the
low-pricethe Middle West. In 1915 a line the
price is only about ten times pects. This is one of the compan¬ earnings
ratios
and
unusually
crew received a pay of $28 a day,
the earnings which are anticipated ies using natural gas for boiler high yields
from utility \ stocks
and
by
fuel and I learned recently they should create
1940,
the
latest
year this year. In neighboring territory
many opportunities
covered by the study, this same is
Dayton Power & Light Co.; have contracts with an average for dealers to do business and
||
crew
received a daily wage of whose common-stock is new to life of about seven years for na¬
the same time-do "favors for their
$64., However, in 1915, the labor the investing public, but its bonds tural. gas
at
around
70
per

their earnings, but to

only to maintain
show some
nice increases. Therel are
mitigating factors even in

can

to another.

their

increases

now

well aware of
are

and

to the railroads

curse

large

cently

Commonwealth

Problem

Labor

Threatening

The labor

these

buying

probably want
of the highest

Two

longer, there are
cheap issues. For example,

lot of

whose

grade seasoned issues. Recently, it
has been possible to obtain from
4%% to 5% from these stocks.

Electric,
The

will

California

equities,
to

program

Public

Buyers

institution is just starting

the market still

Liberal Yields Obtainable By

This

about
means

most

ther^

of the

ment

Division, GEORGIA POWER COMPANY, Atlanta, Georgia.

THE COMMERCIAL & FINANCIAL CHRONICLE

1472

;

Thursday, September 19,

^
i

Settlement oi Industrial
Securities Salesman9s Corner

(Continued from page 1458)
questions which con¬
stantly arise in labor disputes.
economic

By JOHN DUTTON

periods when security prices have experienced a sharp de¬
cline, such as has transpired during the past three months, many
investors become so timid and afraid that they assume a do nothing
After

•

investment account successfully,
prudence is always justified; but fear which brings about complete
rigidity, and the so-called withdrawal to the sidelines, is just the op¬
posite of what is necessary in order to weather re-occurring-reversals
in price trends that come about from time to time.
<
Some investors think they are doing nothing when they refrain
from adding new securities to their portfolio at lower levels, or
averaging those which they have acquired at higher prices; or, where
justified, switching weaker securities into those in more strongly,
situated companies. They confuse a do nothing policy with a with¬
drawal to the side lines, There is only one way to retire to the side¬
lines if that is your purpose, and that is to liquidate all holdings and
acquire cash. As long as you are the owner of securities you are
NOT ON THE SIDELINES—YOU ARE RIGHT IN THE MIDDLE OF
ALL THE CHANGING FLUCTUATING CIRCUMSTANCES. THAT
TRANSPIRE FROM DAY TO DAY, BOTH IN BULL MARKETS
AND IN BEAR MARKETS.
Just because you are not doing any
buying or selling for the moment is of no consequence—as long as
>ou own securities you must WATCH OVER THEM.
In order to bring this point home to those of your customers who
may be loathe to do any business at this time, it is necessary to con¬
vince them that the only thing that counts in the long run is not
whether you are somewhat richer on paper one month, and poorer
the next, BUT WHERE ARE YOU GOING TO BE OVER THE
attitude.

order

'LONGER TERM.

to; handle

'i1

j:'.;

■

The following analogy seems to express this idea well, and if
you think it fits the point you can use it to suit yourself.
In other
words, it is not who wins a succession of battles that is important,
but who wins the war.
A good general conducts his. campaigns with
the combined uses of his troops, tanks, aircraft, artillery, etc.y Bur-;
ing the past four and a half years of advancing security prices many
investors have been like the general who has met success at every
turn of the road. No matter what he purchased advances were made.

•; y

;

The result has been that some security buyers are like the general
who has forged ahead for so long that he has forgotten how to retreat.
Some stocks have been suited to the advance of the past several
years, but
When

today they should be discarded and replaced by Others. v: • j
Bradley found that the tanks which were so successful on

Putting aside discussion of the
difficulties involved in establish¬

ing

a court that would be truly
impartial and qualified to regu¬
late a large part of the economic
life of the nation, let us consider

first

where

The

this

source

Labor

War

will lead.

Board

form of labor court.

was

It became

substitute for voluntary collective

1932,

and

were

approxi¬

mately 5,000 strikes in 1945

com¬

pared to 841 in 1932. The average
number of strikes for this fiveyear

period

than double the average for

ending

1945

The loss for 1946 has al¬

Committee

Bar Association reported:,

can

"The

tial

year

progress

bases ?■-for

industrial

relation¬

of employers
to understand and accept
number

encourage

Also, let us not overlook that
such " proposals are merely tem¬
porizing .with the real issues and
delegating their determination to
the discretion of some new public

bargaining

without

too

damages

for

breach

defeated by decisions holdthat such demands by employ¬
constituted a refusal to bar-

were

ing
ers

SJ-n good faith-

•'-

lab°T was free toattacks
resort
and untruthful

Scerapl0yers' an equal right of
ree speech
was, and still is, de¬
nied

employers.

affaiw
agamst

a tribunal was estabi
pr?^ide employerremedy
labor a . prac¬
unfair

tices,

similar tribunal

^hJ'f

or rem-

olovSe™er?nmfde. avai,able

Later in 1939, Mr. Madden, then
Chairman of the National Labor

ployers^ In fact,,-even access to /
the courts to

Relations Board, said:

were

"In most sections of the

-'V

■

enforce old remedies

coun¬

most employers are now
obeying the law (NLRA)."
In the Ninth Annual

Report of

the NLRB, the Board declared:

agency.
Ultimately, public poli¬
cies must be established for the

guidance of these agencies. Un¬
certain, indefinite policies, as we
seen In the vacillating fed¬

ing is an indication of the cur¬
rent acceptance of the Act by

employers."

*mecuesf

practically barred.

Unfairness of the NLR Act

try

"The preponderance of repre¬
sentation cases, for the time be¬

have

labor

act provisions

monetary

ships in the United States.' A
greater

efforts to insist upon conguaranteeing

treated

~n as a mere scrap of paper.

to; unfair

1938 saw substan¬
> toward
sounder

tional

Temporizing With the Real Issues

been

reservations'of any kind,"

Labor of the Amer-

collective

practically disappeared

use.

has

ready exceeded that for 1945.

want increased

disputes by volun¬

been

an unfair tabor practice

in 1945,

came

ththee,?P'FT'8
the
lockout—has

weapon
weapon

hinHiLcollective agreement is
asa?n3%hUP°n and It may, and
agamst the employer. enf°rceabte

government control of manage¬
and labor or whether na¬

tary agreement,

mmmml

from

is equally startling,
advancing from approximately 10
million in 1932 to over 38 million

ment

settlement

1946

of production

matter, any new form of gov¬
ernment
machinery, we should

shuold

mMi"10 tbe+.law to the right to
has giver* tan¬
protection

The loss measured in lost days

that

policy

gible

was

genuine bargaining.
Consequently, before accepting
the idea of a labor court, or for

mmm—mmmm,

Mo°tor's.epiS°de involvinS General

.the five years ending in 1935.

from

decide whether

mmmmmmmm

Disputes by Legal Process

there

bargaining. Since it seemed more
Charges are frequently made
partial to labor, labor was willing
that failure of federal policy has
to by-pass negotiations to get dis¬
•been due to the refusal of. em¬
putes before that Board. The same
ployers to accept collective bar¬
would result if we had a labor
gaining.
That fiction long ago
court.
If it showed partiality to¬
should have received a
decent
ward
employers, no doubt em¬
burial.
As
early as 1939,; the
ployers would be as willing as la¬
bor has been to use it as an escape

+A^n^PieSiuCOuld be multiplied
indicate the extremes to which
to

the National Labor Relations Act
has been carried. Many of these
rules

were

obviously unfair. More

f^i?°+ri!!nV ho^ever,scales toofact
is the far
that they tipped the
ag?{v? employers
nullified
,

thereby

and

that equality of bargain¬

If further evidence were needed, ing power so essential to the sucfor mountain warfare, he eral ; wage policies of recent
used another^strategy to months, can cause more disputes the record of wage increases vol¬
CeSL -of eeHeetive bargaining, -, *;
than the adjustment boards^can
untarily -offered
by 1 employers
accomplish final victory. So it is with the securities you now own.
has been accen¬
settle. Therefore, whether or not during 1946 should be sufficient tuofl!? ^equalitybranches of law
tuated in other
They are your battle troops, and in order to meet th£ ever-changing
realities of the times it is necessary to do the same as the successful additional governmental machin¬ to overcome any lingering suspi¬ outside the scope of the National
cion as to management's hostility Labor Relations Act.
general who does not take a static position, but who uses his resources ery is established,'This policy¬
making is an indispensable first to collective bargaining. It is also
in such a way as to preserve their effectiveness and their value. .
u^efore ]his audience, there is
step. It is my conviction that if significant that during this period, little need to develop in detail
-.-.From here on you can apply this' thought to specific securities
properly developed, these policies almost without exception, no ef¬
which you know are held by your clients and make. suggestions for
decision
alone could- accomplish, so much fort whatever was made in any whir.h°u rS6^ ofi judicial
.'switches out of "weaker situations into those which are stronger^ toward
labor law developed the so-called
encouraging the peaceful major strike to reopen the plant Ecrh.has of today. Certainly most
What may have been a very attractive speculation six months ago
settlement
of disputes
that we and attempt tp operate in the face
-may not be suitable for long term holding today , . . here then is the
might easily obviate the necessity of a strike or : picket-line. • The Outline are familiar with hs broad
.opportunity to serve your customers and to maintain sales-volume for creating any new government failure of national policy to pro¬
When the National Labor Relardespite the lower prices which now prevail.
•
,
duce industrial peace cannot be
machinery or procedures.
? became law, , there exWe hear it said on all sides that so easily; explained by charging

the plains of North Africa were unsuitable
sent the. tanks around the mountains and

•

;

but that

E Bond

Redemptions at
Record Low in August
War bond cash-ins during

Au¬

gust dropped to the lowest figure
fop any month this year, the
Treasury reported on Sept. 6.
Associated

advices

Press

from

Washington reporting this, added:
"At
still

$397,392,000,

exceeded

new

redemptions
purchases of

the E Bond series by $50,114,000,

is the narrowest-margin

seven

total

months. * The * cash-in

was

28%, below -the" peak

reached in March.
"New

;

\i :

purchases of all "savings
F and G counted in

what is needed is

federal or na¬

tional labor

policy. The fact is we
already have a national labor pol¬
icy^
The difficulty is that this
policy has become confused, con¬
tradictory
and :; ineffective
by
grossly inept government admin¬

ined

cidents of labor disputes.

022,000 during August, exceeding
cash-ins of the three series by
$141,514,000.
' /;,>•>'
:
:~"That brought total sales for. the
first eight months of 1946 to $5,-

tional

384,673,000, topping' redemptions
by $1,103,624,000."
;
V;v V ]

embodied in
two important statutes enacted by
the Congress: the Norris-LaGuar¬
dia Anti-Injunction Act of 1932
and the National Labor Relations

ence'of

with

the E

series—totaled

$590,4

istration.,' :,
: ■
We started with
labor

the

na¬

* ;
committed

government

federal

practice

Hytron Radio & Electronics Corp.

/.'•

two- statutes

These
the

definite

policy

the

of collective bargaining
best means to industrial

step

Act

designed to curb employ¬

;<•'

• •• •

toward effectuating
that policy, the Norris-LaGuardia

Common Stock
on

peace.
As a

request

was

with

interference

zation

and

collective

self-organi¬
bargaining

by limiting the use of injunctions
in labor disputes. '.•TXo'L"
The. National Labor Relations

Herrick,Waddell & Co., Inc.
B5 LIBERTY STREET, NEW YORK 5. N. Y.

Act

extended that

policy by pro-f
hibiting certain other conduct by
employers which might interfere
with

the

practice

bargaining.

collective

was

equal

peaceful legal .^processes. It con¬
templated that labor would be
strong enough to resist unfair or
oppressive treatment by employ¬
ers, and that management would
be able, equally, to resist arbitrary
demands or activities of labor.
what

two

extent has

balanpo
wnuM

Inequality in Bargaining Power

nately, however, this body of gen¬
eral law evolved in
only one dithp
the

r<?nAfnam5ly' to enlarge

upon
rights and privileges of labor,

employers? I1ShtS and remedies

Judicial

For 33 Years

and

National Labor Relations
Act sought to reestablish equality

advan¬
tages which tipped the scales too
heavily in their favor. In its ad¬
ministration, however, these re¬
by depriving employers of

employers were

car¬

combined

agreement.

While

this federal

ceeded in

Established 1913
46 Front Street,

Chicago

San Francisco

suc¬

and

establishing

widespread collective bargaining
relationships, the number of dis¬
putes ..and strikes pas steadily- in¬
creased.

The

New York 4, N. Y.

policy

building large labor or¬

ganizations

NATIONAL QUOTATION BUREAU, Inc.

Points agreed upon

may

alone

States

Conciliation

handled

tiate in
use

are

gcod faith or are free to

negotiations as
in

the

;

illustrates

^ f fUar-

lnjunctions in labor dis-

putes

affect. other

remedies,

civil

criminal.

Finally,
was

not to

the

power

issue

its

declared

purpose

change in any respect
of

federal

courts

injunctions where fraud

violence

was

wrS' f
legitimate

involved.

other

laAY defined certain
.

activities and provided
protection against inter¬
by injunction.

for their
ference

Supreme Court's

Interpretation

-■

JYou nas now been
are familiar- with this law
it

interpreted

by the Supreme CQu.rt.

First, it

was

construed not

m^a^on on e9uity

powers

of federal courts, but as a state¬
ment of policy against the issu¬
ance

of injunctions

in any labor

case.

free to negotiate or
negotiate. They may nego¬

They

approxi¬

mately 18,000 disputes in 1945
compared with 7.52 disputes in

obligations

ployer.
not to

United

Service

agreement. No
are
imposed
labor organizations. Unions
refuse to deal with an em¬

similar
upon

must be re¬

to- written

duced

Act

'Jbat law was Intended
' n°t fm'bid, the issq-

Over-the-Counter Quotation Services

construction

Norris-LaGuardia

The

f
1 if Probable a sound
v»
"rights and obligations
i?ave resulted. Unfortu¬

inP,n^faiSintended tb resulate the
njunctive process alone, not to

condition been realized?

straints

this general law been per¬
to develop to meet defithe National Labor Re-

that basic

ried" far beyond

statutes

mitted

remedies through

the original pur¬
pose.
Employers were under a
were
intended to
establish an legal obligation to recognize bar¬
equality of bargaining power be¬ gaining representatives selected
tween labor and management, and
by a majority of employees.- They
thereby promote the peaceful set¬ were and are compelled by law to
tlement of disputes by negotiation negotiate in good faith.
These

t /^e body of law dealing
^vL!aw Uu and unlawful strikes,
cketing, boycotts, and other in¬
with

The key to this national policy

equality of bargaining power.
This
equality presupposed that
parties given equal rights and ob¬
ligations would act' as a check or
restraint' upon
each other.
If
either should disregard the.legiti¬
mate,rights of the other, it pre¬
sumed either an ability to retali¬
ate through self-help or the exists

bonds—the

Act of 1935.

Prospectus

employer resistance or hostility.
More basic causes must be exam¬

the

recent

"maneuver,"
"look

the

Second,j it; nullified the, equitv
power

of the courts

even

cases

involving fraud or violence, by
ruling that in no case should an
injunction issuej if ;the employer

.Volume 164
had failed

THE COMMERCIAL

Number 4526

to offer to submit the

dispute to arbitration.'

So, too, the law Has been slow
expressing the national la-' to recognize any Valid distinction

bor

policy of the country which
proceedings.

Hutcheson
this

that

between

.crim¬

picketing a place of em¬
ployment—rand picketing a per- <

In the famous
the court held

son's home. The1 lapse, apparently,!
arises from our -inability to decide

should also .control civil
case,

the right to join without inter-

the persuasion.

the;

Act

the rights of. those who are the

object of

"Third, the .court construed

inal

procedural

to amend

employment. There is

Since the only federal law.

re¬

stricting unlawful, union activity
had developed in cases
arising un-' right of privacy is fully asserted
der the anti-trust laws, that body and settled, however, this uncer¬
of law was, in effect, repealed
by tainty also contributes to the in¬
this one decision;
:
equality ; of '..bargaining
poWer
Organized labor needed no fur¬ which underlies
ther evidence of its freedom from' national policy.
legal

restraints,

concluded:
'

when the Court

'{$*,

"So long is

.union acts in its
the licit and

■^self-interest;;

".the illicit under Section .20
not to be distinguished
by

,are
any

-The

has

law

failure

our

been

equally be¬
hind in establishing the collective
agreement as a valid binding doc¬
ument; Since federal law requires
employers to sign written collec¬
tive bargaining agreements, is it

judgment regarding the wisdom not reasonable to assume that
.or unwisdom, the Tightness or, these binding agreements were to

the selfishness or
unselfishness
of the .end": of
Which the particular union ac¬
wrongness,

tivities

are ;the means."

Few people realize the effect of
this decision on the ability of the
federal government itself to
cope
with strikes which have threat¬
ened national safety and health.

In the

spring, the coal and rail-?

road strikes threatened to stop our
entire
economic
machine.
The

President had to resort to seizure
or the mines and railroads—and to

enforceable—like

Yet

tracts?

there

.other

con¬

nothing
law' to make
was

placed in federal
them legally enforceable.
While
the common law has developed to
a point where, either the individ¬
ual worker
cure

the union may

se¬

redress against an employer's

violation, the law has not devel¬
oped any clear rule giving the
employer redress if the agreement
is violated either by an individual
worker
came

the

union

which

be¬

party to the contract.

Many states still

consider the
legislation to confer;
union as a voluntary association
even more drastic powers of seiz¬
not suable as an entity, and there¬
ure and
government operations.
fore judgment proof.
recommend

In the 1920's there

ilar coal

was

sim¬

strike,

affecting only a
segment of the industry.
It was
held by the Supreme Court then
to constitute *r. combination in re¬
straint

trade.

The

Hutcheson

changed that. It deprived tbe
government itself of a legal rem¬
edy against a strike which stopped
ease

the production of coal

more com-;

pletely and effectively
business combination
had

ever

even

than

any

monopoly

dreamed.

There is little need t6 trace here

Many states, in fact, still do not
consider the collective agreement
even

as a

binding contract.

Tn the event .of breach, liability
is
difficult
to
establish — even

now

to be entering

ment

recon¬

labor which

frequently

cile the rights of individuals underlies
those
disputes which
and minorities with the power;
bring about serious strikes. It can
of those who control collective;
be .done to permit a maximum of
.; bargaining groups."
Self-regulation, a minimum of bu¬
*jj Relying on the platitude that reaucratic government interfer¬
"labor is not a commodity," we ence. It is not anti-labor—in
spite

doubt in

my mind about the results of this
collision
of v. interest.
Until
the

appear

the phase of struggle to

;

1473

tiement of labor disputes by peaqewhich
collective
bargaining
till means. It is the surest step to
'becomes another form of inrestrain
voluntarily—that arbi¬
\dustrial warfare.
/■
trary action by either manage¬ 4.
Requiring both labor and man¬

ference, seems to be culminating in a victory for labor forces.

statute was whether the right of privacy
inj
the anti-trust; the home is entitled to
protection,
laws and bar criminal or ;civil ac¬ at
least equal to that given the
tions for conduct .clearly in re¬
right pf persuasion at fhe place of. have
straint of interstate commerce.
law

intended

&
FINANCIAL CHRONICLE

the

.developed
and

status

such

loose

unrealistic

thinking onj

When_ labor
acted
primarily
through autonomous local unions,

jThe

assure

were

to .the

! by .labor organizations.

^ in¬

consumer

that.

If established

rea¬

•

than
lead

indus¬

service.

the

President's

year.

Agreement

was

■

reached

on pro¬

Agreement

cordings.

reached ;oh some

Let

ciliation Service.

re¬

that

even

government dictated Settlement.

any

the

Office

Manila.

In ad¬
over

Philippine property in the United.

States

was reached
procedures for settling juris¬
dictional disputes and strikes.' (
Likewise, labor would not agree
to any real recognition of man-;
agement rights or functions, or \

If other Industries follow the same

of, President

request

with the
Philippine
Government of its own Foreign
Funds Control, the U. S. Treaspry
Department announced on Aug.
31 the termination of its freezing
controls in the Philippines and
the closing of its Foreign Funds
Control

every

Philippines

Atr the

dition, the blocking controls

vTrue, rio agreement

not

overlook,
major coal
strike in the past
seyeral years,
the industry-wide stoppage has
Inevitably brought direct govern¬
ment intervention, and
generally,
a

was

Already the public steps needed to improve and make
paying for royalties collected by- more impartial the Federal Con¬
consumer.

also,

could

establishment

settling disputes or;
grievances arising over the mean¬
poses dangers to the public wel¬
fare, even where there is no col-! ing or application of agreements.

Lewis op coal and Petrillo

group

Roxas and concurrently

cedures rfor

Industry-wide bargaining itself

There

greater opportunity for public

government conciliation and pri¬

detrimental

legal pro¬
qualified

single

Labor-

vate arbitration. \

competition and
price in that industry.
-

agreement

any other
this effort.

handling of dis¬

affect the level of

the

applying

the

are

you

and the political

try-wide basis, they are bound to

lusive

As! members

fession,

I Agreement was reached on vol¬
untary procedures to reduce dis¬
putes over the making and Renew¬
al ; of contracts, and the use of

to realize
an

against

consumers

unions" by

to
organizations the basic
principles of law designed to
prevent monopolies and re¬
straints of interstate
trade.^

see much

Management Conference last

—

seems

"big

labor

biased government administration

ered

opportunity to buy: in a
competitive market.
Wages—la¬
bor costs
production standards
have a direct effect on price. Even
now

will

Protection of
1

tuated by lack of balance in the
law." This is particularly true of

every

Washington

of legal safeguards
protecting individual workers
against arbitrary .domination

putes which has been so evident
i,n. recent months. It is true, also,
of.many of the problems;consid¬

apti-frust. laws

tended to

brought into

-voluntary limitation

the right to strike.

lifted.

were

Treasury
announcement - in

Department's
the matter

The

further said:

"Treasury Officials pointed out
the freezing controls were
in the Philippines
shortly after their liberation to as¬
sist in controlling enemy-owned

that

re-established

assets

and

the

activities

sus-r

Certainly these problems also
when the
pected collaborators.
are
important sources of conflict
able—and
; "General
Ruling No.
18,
as
sure to follow.
It is a ;sure invi¬ and strikes.-They, too, must be re¬
can be sued as an entity. The fed¬
amended .today
solved^ Their solution, however,
(Aug.; 31) pro¬
eral rule, written into the Norris^ tation -to more government Inter¬
Would be greatly facilitated by
vides that for the purposes
LaGuardia Act and followed in ference on a political basis, v v.
of
Many large international unions developing the balance ,of legal the
the anti-injunction laws of some
freezing regulations the Phil¬
20
industrial states,
specifies a today closely resemble some of • rights and duties so necessary to
ippines shall be treated as an
early trade associations of equality of bargaining power. In
doctrine of agency liability which the
J unblocked country and as a part
makes legal responsibility a pure business men once involved in summary, may I suggest:
proceedings under the anti-trust 1. The basic cause of disruptive of the generally licensed trade
fiction.
laws.
;
strikes is failure of the law to
These loose combinations
area.
as defined in General LiIn the case ,of a corporation,
t
have been denied use of royalty
.establish !a real equality of
breach of an agreement by any
bense No. 53. Thus all licenses ap¬
assessments, restrictive member-, J ^bargaining power essential to,
agent acting under color of au¬
ship rules, blacklists and boycotts ■■"■I genuine collective bargaining. plicable to the generally licensed
thority is normally sufficient -to
—practices not .uncommon in la¬ 2. The mere creation of new gov- trade area, including General Li¬
establish .corporate liability. In the
! ,ernment
bor organizations today. Many of
machinery, whether
censes Nos. 53 and 53A, are auto¬
case of a
union, however, proof
called a court, board or com-:
these labor organizations today
of
authorization •; or
subsequent
matically extended to the Philip¬
" mission, can give mo real asrepresent a much larger percent¬
ratification is fast ,becoming ithe,
:«.. sprnhce.rof. the ipqacqifcli ad-; pines.
age ;of workers in their industry,
1 •
test.
'r justment, of disputes. . *
and, as indicated in recent indus¬
/\
!
"The amendment also waives
J As lawyers,
you;are not shocked, try-wide strikes,- they possess a 3.
Equalizing the legal right^, pb^ the provisions of General Ruling
when a rule or principle of law
i
power to restrain trade, whether
ligations and remedies of labor ;
becomes distorted to the point of: or not it is
No. 5 with respect to importa¬
so used, far beyond the
i
; and management is essential to
defeating the very purpose for! power or.
ability which the Su-;
establishment -of that equality tions of securities and currency
Which the rule was developed.;
preme Court, in recent business •\r of bargaining power without from the
Philipines."
Originally, the keystone of our; cases, has held monopolistic. " '
J
national labor policy was to pro¬
> Time
does riot permit any jde-!
tect the rights of individual work¬
tailed suggestion as to those rules'
ers—to join or not to join a .labor
now applicable to business com¬
union.
The rights,
the welfare,; binations which
would be equally
the interest of the individual was
pertinent to labor. It is an area
the
paramount concern of the
in which the rules must.be fixed
Congress in enacting the N.L.R.A.
jn establishing the environment
for successful collective bargain¬
|
Neglect of the Individual
;
ing. It is not enough to say,, as did
f Almost unnoticed, the emphasis
President Truman in vetoing the
today is upon the rights and priv¬
Case Bill, that the anti-trust laws
ileges of the labor organization—!
are not designed to solve the la¬
not the individual. The trend to-!
agreement is enforce¬ pattern of national, industry bar¬
even
when the union' gaining,
the same procedure is

.„

the

results

this

one

decision.

They were epitomized four years
later by Mr. Justice Jackson, who,
dissenting inf the chse of Hunt v.
Crumboch, said: >
''
\
-

aWHh'tfhfsJtecisiOfy %he labor

i\ J

^ movement has
:

come f ull circle.
This court now sustains the

j;; "Claim of

deny participation in the economic world to an employer
"simply because the union-dis-f
dikes

him.

This

Court

permits

Revolutionary Changes In.
Picketing

;The law regulating picketing lias
through a similar period

passed

revolutionary change. Prior to
1921, the legality of any form of

picketing

in serious question.
the Supreme Court
peaceful .picketing was
legitimate labor activity and
was

In that year,

held
a

that

prescribed the conditions under
Which it would be considered

peaceful,

^ ill 1932, picketing

unaccompa¬
nied by -fraud or violence, was de¬
clared immune from judicial in¬
10 years,

injunction. Within
picketing became estab¬

lished

terference. by
as

constitutional right of

speech.

free

;

Picketing was protected in the

permitting persuasion
a point of .view. Mass picketing
not persuasion. It is .coercion.

interest
to
is

There is
tice

persuasion in

which allows

a ,prac¬

third party no

choice but to comply with the
mands of those
ical ability to

displaying

de-;

phys¬

enforce their views.

law, so intent on protecting
the right to peacefully picket, has

The

been

slow

to protect

mate rights of the

the legiti¬

public,

■

to employeesTthe same arbitrary
'dominance over the economic

sphere which they control that
labor so long, so bitterly ,and so
rightly asserted -should belong
4;o no man."

union to the right to

well

After careful investigation, the

greater progress toward the solu¬
tion of other problems now accen¬

each

If the law is

sonable balance,

use

enactment

legitimate right

organizations i or activity of labor need he weak¬
under laws
designed to protect ened in the slightest degree.
consumers 1 against restraints
of
trade or monopolies.
I
Conclusion

tention.

of hysterical cries to the contrary
—for no proper or

labor

bargaining individually, this
problem was not too pressing. To-;
day, as witnessed by industry-j
wide .'strikes
in the coal,. steel,
railroad and
oil
industries, the^
problem will require prompt at¬

agement to refrain from

violence, or threats of violence
in labor disputes.

bor abuses which that legislation
national
unions, ^national
Attempted to meet. It is not too
bargaining and national standards
material' whether
we
use
the
not only
subordinates the, indi-!
framework of the anti-trust "laws
vidual's welfare and interest, but
or something else.
The important
the interest and welfare of all his
thing is to meet the problem be¬
associates in the community. It is
ward

the same trend towards, bignes$,
toward absentee,, or undemocratic

fore it becomes unmanageable.

1; One would be

control that is so

extremist to

spggest that

cized

ficiencies

frequently criti¬
part of business.
Laws
protecting
stockholders,
however, ;as well as enforcement
on

the

any one of these de¬
in the law has caused
the failure of collective bargain¬

ing.

combination, they

are

a!
INVESTMENT

of the anti-trust laws, offer a rem-, formidable obstacle.
Unless modernized to give both:
edy against undesirable business
concentration. There is no law to parties equal rights and equal re¬

protect
vidual

the

interest

the indi¬

worker

against
similar
domination by powerful unions.
•
As one dissenting member of;
'"

the Court said in the

case

of Wal¬

sponsibilities,
then
collective
bargaining cannot possibly be¬
come

ing—of

readjustment—or

legal

rights

N.L.R.B.:

;

•

Other

Leading Exchanges

and
«

UNDERWRITERS AND .DISTRIBUTORS OF

balanc¬

and

obliga¬
v \ tions is not a dramatic course. It
'"The .struggle of the ,unions has but little public appeal.
Yet,;
for recognition and rights to
(it is the most important step that
bargain,! and of workmen for' can be taken to facilitate the set-

lace

the road to industrial peace..

This

BANKERS

Members New York Stock Exchange

•

INVESTMENT SECURITIES

BROKERS OF BONDS, STOCKS, COMMODITIES

Privqte Wires

Horpe Office: Atlanta

Phone ID-159

THE COMMERCIAL & FINANCIAL CHRONICLE

1474

problems

fense, it

was

of hemispheric de¬
said, r An advance

party has already been sent to the
make accommodation

area

ar¬

now

settlement

months-old
workers'

12%

dispute.

Union is

agreeable to
to

boost of close

hour

two-

Trends

Steel-

believed

a wage

cents

the

The

Thursday, September 19, 1946

across

the

Prices

the Stock Market

the

Exchanges

Canadian

followed

Features

were

Encouraging
Continues to

come

sources

about business conditions in Canada which
from the Dominion Bureau of Statistics and other

news

industrial

the

Bureau

Industrials

gained

strike issues be settled by arbitral

and

tion.

proved

cheering reports

in recent^ weeks.
wholesale sales in July

reports, for instance, that

,:Vv

'•

Steel Strike Settlement Believed

Reports

from

strike

steel

the

physical volume of
nearly 1%
to 180.3.
During the first half of
the
year,
too, the Bureau an¬
nounced,
business failures
de¬
clined to 113, compared with 147,
the previous minimum recorded
for the corresponding period in
of the

index

business in July rose

1945.

tions

stocks

in July,

reau

bonds

electric

central

sta¬

the Dominion Bu¬
also revealed,

Statistics

kilowatt

3,422,826,000

produced

highest July produc¬
tion on record.
In 1945, the Bu¬
reau also announced, domestic sale
hours—the

MARKETS maintained in
all classes of Canadian

external

implements and equip¬
ment, mainly at wholesale prices
to dealers or agents, totaled $63,781,105, the largest figure since
1936.
Hourly-rated employees in

internal

and

bonds.

executed

orders

Stock

(for dealers, banks and
institutions) on the Mon¬

6,124 manufacturing plants earned
an
average of $29.68 a week at
July, compared to $29.02 at June
1 and $31.05 at July 1, 1945, the
Bureau also reported.
The num¬

treal and Toronto Stock

Exchanges,

net

New York Prices.

increased

workers

such

Corporation

their

for

reached such
end

About 22,000,000 tourists, mostly

convention

the

ciation

has

Canada

revealed

that Canadian production of news¬

totaled 370,670
tons, an increase of 83,648 tons
over August of last year
and of
13,649
tons
over
the previous
print

in;" August

month. The Renaissance Film Dis¬

tribution, Inc., plans to construct
will probably be the third
largest movie studio in all the

what

British

treal.

on 300,000 square
adjoining the former

Empire

feet of land
site

Dominion

Park

Mon¬

The Winnipeg Free Press

predicts a grain crop of 441,100,000
bushels, 10,000,000 bushels above
the estimate
of the "Winnipeg

CANADIAN STOCKS

t*\

travel

sin;

production and sales—
what worries me.
Long ago, down in the mountains
of eastern Kenucky, I learned an
old-folk saying which ran, "When
things are too good to be true,
they aren't true!"
become

hypnotized
by the present heavy demand for
consumer
goods that we forget
the fantastic production totals of
wartime?
Can anyone take
a
Have

serious lpok at the enormous pro¬

ductive capacity of American in¬
dustry
that

doubt for an instant
produce more than
consume at the ever lower
and

can

we can

and lower

teristic

prices hitherto charac-.

American
were

business?

hardy enough to

ability to meet the
prices which prevailed

our

the past, surely he could not
question our ability to do so at
the mounting prices which now
confront the consumer.
Higher
prices are bound to < reduce con¬
in

Furthermore,
"slow-down"

go on a

"sit-down" strike.

buyers
or even

After all, the

buyer controls consumption and,
in the long run, production.

Canadian

Weekly Newspapers Association
last Friday. The Newsprint Asso¬

CORPORATION

but that is just

can

MUNICIPAL

and

religion

vorces;

sumption.

PROVINCIAL

low ebb that the

and auto deaths; employment and

proximately $233,000,000 in Can¬
ada this summer, D. Leo Doland
of Ottawa, chief of the Canadian
Tourist Bureau, told the annual

GOVERNMENT

has

True, everything is at a very
high
level—marriages
and
di¬

from the United States, spent ap¬

CANADIAN BONDS

approaches. A

Exchange Place

Bell System Teletype NY 1-702-3

sanity

products,

New York 5, N. Y.

1455)

page

begin to talk' about five
and 10-year backlogs of demand

demand at

way

nessmen

dispute

July than at
the end of June, the government
figures also showed,

Tribune" two weeks ago.

Military Forces Plan Joint Cold

Understand Capital¬

Communists

istic Productive Capacity
the

Even

Communists

that

Capitalism

goods

efficiently, f In
chief

Marx's

talism

know

produce

can

fact, Karl

indictment of

consumption, causing periodic
gluts and depressions.
No, you
don't hear the Communists talking
any nonsense about five-year
backlogs!
that

I»doubt

our

capitalistic

under present world
conditions, can survive an all-out
depression.
Whether
we
will
have such a depression depends
on the
planning of businessmen,
on the leadership of labor and, to
a
much lesser degree, on the ac¬
tions of government.
;
economy,

Situation

Financial

INCORPORATED

TWO WALL STREET
NEW YORK 5, N. Y,

Army and
planning joint cold
weather
exercises .in
the..1 area
around Churchill, Manitoba, where
the U. S. Army operated a war¬
time air base, it- was announced
at Ottawa last Thursday.
About
5,000

RECTOR 2-7231

NY-1-1045

Bullish

The Canadian Navy,

Air Forces

are

Canadians

probably

—

many

and

at times

United States

"military"—will participate in the
maneuvers

which

will

aimed

would

Let

first.

64 Wall Street, New
WHitehall

herent

the

financial

evitable.

factors

depression in¬
Before going any fur¬

which will make

York 5

not

national

defense

$19,000,000,000.

Provincial

Corporate

approach

threat'

heavily

The

Canadian
to

dollar

increase
'

slightly.

have been much heavier than

ticipated.

an¬

The $2,418,000,000 au¬
for terminal leave pay

thorized

for veterans is

example of

appropriation which was not ex¬
pected. The 52 weeks jobless pay
of $20 a week for veterans is run¬
ning much heavier than estimated
and

will

require $4,000,000,000
the present unemployed

even

total

does

not

1,700,000

ex-servicemen

increase!

Street, New York 5

Direct Private Wires to Toronto <& Montreal

ans'

■

brings

the
Here

tofthe second

discussion—that

our

volume

bank

is,

deposits.

the

important news is that
redemption has succeeded
Since the be¬
ginning of this year the Treasury
debt

deficit financing.
redeemed

$15,485,000,000

Provision

commercial banks and the Federal
Reserve Banks. This redemption
of securities held

by the banks de¬
creased deposits, while the re¬
demption of securities held by the

V;
:'«7!

Federal Reserve banks decreased
In this reduction of

reserves.

eral

sev¬

billions in deposits we have*

direct reversal of the process of
bank deposit expansion which has

been in operation since 1933.

posit

expansion

has

De¬

been

suc¬

$4,000,000,000

pensions

and

How

Also, contributions to interna¬
tional financial

reconstruction

$4,168,000,000 are another
heavy burden on the budget.
some

this

can

reconciled

development be

with

the general ex¬
pectation that deposits would con¬

tinue to increase after the end of
the war?
The answer is

very
budget expenditures
simple.
This reduction did not
by the Federal Government alone
happen.
It
was
directly
of $41,500,000,000 for the fiscal just
caused by the selective redemp¬
year 1947 are at a level which
tion policy of the Treasury—that
would not have been believed pos¬
is, the redemption of securities
sible six years ago.
Nonetheless, held
by banks.
The monetary
there is still an excellent possi¬
authorities are genuinely alarmed
bility ithat we may balance the
at the large volume of deposits
budget on a cash basis; and, if
and are determined, with Treas¬
Congress will only cooperate a lit¬
cooperation, further to re¬
tle and prevent further raids on ury
duce the total,
the Treasury, there should be no
In addition to these reductions
need for any further Federal bor¬
in the public debt, you may ex¬
rowing in the next twelve months,
pect to see attempts to shift bonds
at least. "
'
1 / ' - '

Probable

This

will

the

that

means

Treasury

longer be a constant bor¬
in the capital market as it

rower

has

for

been

the

last

years.

The end of deficit financing, even

though it may be only temporary,
has had a profound effect on the
money market.
Heretofore, the
Federal
Reserve
banks
bought
securities

short-term

from

the

to create reserves

member banks

that member banks could buy

enough government securiites in
the open market to keep the price

This reservecreation procedure became prac¬
tically automatic and banks did
not have to worry about their re¬

well

above

par.

All during the war banks

knew that they

could buy gevernment obligations with practically
no
market risk as the Treasury
monetary authorities de¬
liberately conducted their opera¬
tions so that outstanding obliga¬
tions would sell at a premium. As

and the

materially in price.

came

positive
an

market

from

succeeded, begin¬

the

hands in
duce

banks

deposits.

So far,

re¬

shift has been devised.

There are

proposals under considera¬
tion, but it is going to be very
difficult, if not impossible, under
present legislation, to prevent the
commercial banks from replacing
many

such
redemptions
through
open-market purchase of bankeligible securities now held by

any

non-bank

investors;

the

ex¬

tent that the redeemed securities

replaced by securities bought

are

from

other

reduction

investors

there

more, the
cates and

deposits.
Further¬
retirement of certifi¬

other

short-term

low

yield obligations through the sale
of higher yield obligations to nonbank investors will only increase
the
total interest
costs of
the

Treasury.

In other words, there
object in the Treasury shift¬
ing securities from the banks to
is

the

market if the banks

can

im¬

mediately shift other and higheryield securities from the market
their investment portfolios.

Proposals for Deposit Control
As

you

Federal

probably-

Reserve

know,

Board

has

the
re¬

cently forwarded to the Congress
several proposals for the control
of deposit expansion.
Among the
proposals which the Board feels
worthy of consideration are the

and the monetary

following:
1. Security
Reserve
Require¬
ment—This proposal is for legis¬
lation authorizing the Federal Re¬

are

to get as many

now

very

anxious

gipvernment obli¬

gations out of the banks as pos¬
sible. < Through selective redemp¬
tion,. the Treasury is retiring a
large volume of obligations held

Through selective re¬

■<

buy bonds in the open
On the contrary, both

Treasury

non-bank

effort to further

;•

work¬
able method of accomplishing this

factors

end about a year ago

been

and have

by banks.

:.S4trsii -J.MWJFMry

'This

■

part

for veter¬ ceeded by deposit contraction.,vji
various other fundamental change of the great¬
benefits is larger than anticipated. est importance, v::,.;,another

authorities

Incorporated

banks to non-bank investors.

The Volume of Bank Deposits

Likewise, total appropriations outstanding obligations—securities
of
$10,428,000,000 for veterans which were largely held by the

market.

Wood, Gundy & Co.

the

has

the budget.

the

14 Wall

will

indeed, weighs

war,

CANADIAN

Municipal

the

New York tended

$350,000,- funding operations, they are shift¬
ing government obligations from

pected^- Military costs remain at
a level some 15 times
higher than
in 1939.
Thus, for the 1947 fiscal
year, prospective expenditures for

them

Government

ning in the early part of this year,
by negative factors.
The Treas¬
ury no longer wants to sell bonds
to the banks.
It no longer wants

All Issues

Bought—Sold—Quoted

SECURITIES

indeed happy to re¬
assure you that the financial situ¬
long as the Treasury was in the
ation
is
in
good shape—much
market as a borrower, government
better shape than we have any
obligations could not be permitted
ther,

Bonds

3-1874

Federal expenditures have
decreased as much / as ex¬

serves.

the financial
situation, step by step, to demon¬
strate that there is nothing in¬
I shall not analyze

Dominion of Canada

COMPANY

take government finance

These

for

way

right to expect after
000,000 war.

to drop

TAYLOR, DEALE

the

pave

early settlement."

capi¬

that production outran

was

Weather Exercises

A. E. AMES & CO.

im¬

A Look Into the Future

(Continued from

Even if one

Canada at the end of

it,

receiving un¬
employment insurance benefits in

Dominion Securities

put

metals

slightly.
In New
York, Canadian externals were
mostly inclined to lower levels.
Internals, too, were lower.
The
discount

1.2% in June, while hours worked
2.1 %.
Twenty 'per cent

fewer persons were

union,

companies agree to the

strength

some

base

very

"it

were •;

Toronto and Montreal

ber

Direct Private Wires to Buffalo,

farm

Millard, national

the

steel

the

arbitration of the non-wage issues

non-

strikes;

Canada's

single issue—arbitration

were

Canadian Securities

golds

front would indicate that only a

wage matters—stands in the
were
22% greater than for the^
corresponding period in 1945. The wholesale sales on the base 19451939 equals 100—stood at 249.3 in
general unadjusted index
of
July, whereas in July last year it
was 203.7.
Retail sales in July

reported at 15% above the
level for the same month last year.
The Bureau also revealed that the

the condition that other

director

tend to counterbalance, and

scene

perhaps even more than counterbalance, the less
Which have been emanating from the stock markets
The

board

istration offices.

WILLIAM McKAY

the

generally lacking.

rangements and establish admin¬
By

Stock

closely

trend in New York this past week.

serve

Board

Governors

specify a minimum percentage of
Treasury
bills
and
certificates
which

commercial

banks

would

[Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

be required to hold as a second¬
ary

against net demand

reserve

deposits.

Regulation of Bond
Port¬
folios — This
proposal
suggests
legislation empowering the Board
©f Governors, to place a maximum
©n
the
amounts' of
long-term

marketable

securities, both public
private, that a commercial

and

bank

against net

hold
mand deposits.
may

3. Power to

de¬

•

Raise Reserve Re¬

quirements—This

proposal
conlegislative authoriza¬

vtemplates
tion
to

for

the

limit

further

Board

deposit

Governors

expansion

increase

by^a

reserve

re¬

quirements.

(It * includes
the
questionable
suggestion

highly

that all commercial banks should
be

subject to
rquirements.)

the

same

reserve

'
' •
The Federal Reserve Board sug,

that

gests

some ^

such

measures

should be passed if further monetization of the public debt is to

be prevented.1: That is, the Board
takes the position that further

legislation is needed if it is to

•/'

cline.

culmination

Moreover,

about "saving to spend!"
Spend¬
ing is on the basis of the income
stream
and is, in general, con¬
trolled by expectations.
That is
why consumer credit is so im¬
portant in the field of durable
consumer
goods.
And, as you
well know, if the borrower does
not fit his spending pattern to his
income expectations, the lender
will

him.

for

With

any

policy, the lender would be

The

controlling

indispensable
credit

importance

income and the corollary

current

role
forth

set

of
at

fund

force the shift of securities from
the

in the event of drastic

commercial

investors

banks

has

reserve

non-

tremendous

income.

Total

the

changes in

asset

holdings

implications because it directly of three-fourths of the people
A tighten¬ amounted to less
than one-fifth of
ing of general interest rates in¬ their annual income,"
evitably follows any consequen¬
The findings of this survey are
tial deposit reduction unless ex¬
at such wide variance with the
treme restrictions are imposed by
"inflation gap," "inflation poten¬
the monetary authorities or unless
tial," • "backlog
of
purchasing
comparable offsetting influences
power," and other theories of
develop in the economic struc¬
raising ourselves to the clouds by
ture.
The deposit decrease, and
pulling our own bootstraps, that
the reduction of excess reserves
it ought to be required reading
which have taken place so far,
for every bureaucrat and
busi¬
have definitely stopped the downnessman
in
the
country.
Too
V;; ward trend of short-term rates
many people have forgotten what
and started them upward.
As I
happens when prices out-run in¬
see it, we have, beyond question,
come!i
passed the lowest point in shortaffects interest rates.

rates.

term

Moreover,

have

are

does it

nor

our

structure

back to the 6%
happy memory.
It

The main

this

Cer¬

ture.

decline in bank

tions

and

which

hands

individuals

can

again.),

be used

over

which

almost

rowing in recent years, will in the
near
on

ful

future only be in the market

refunding-shift basis.
Care¬
analysis of the various supply

•and demand factors indicates that
from

any standpoint, the supply
capital and credit will be more
than adequate for any foreseeable
demands which may
be placed

upon

ever,
ness

alter

I must point out, how¬
a change in the busi¬
outlook
will
undoubtedly
the policies of the Reserve

Now, to take a quick look at a
few of the other important finan¬

basis

for

replace¬

well-situated

dividend

day

yield ■l

and

amounted

The

answer

yield

the

extent and

would

less

than

forthcoming collapse in

nomic situation.

tremely deflated level.

market

fair

conclude

ex¬

It stands

to reason, of course,
market implies that

new

used

car

was.

maximum

Tax-Saving Opportunities
Many opportunities exist in the
market. to

present

tageous

effect

tax-saving

and at the

tion's

airlines

will

caused

selling

decline

grade stocks of

pansion

production

Jones

inflated

lies

limitations

decline thus far has been equiv¬

1919

bear

commodity prices
dangerously high

credits

inventories

With

1919

factors,

might

said

surplus of commodities likely to
be pressed for sale o.n the market,

With

pyramided

commercial

not

bor¬

matter of fact,
were hardly
stronger state. More¬

would

normally
iness

major liquidating movement
equities presupposes that there

duction

are

chasing

able

for

and

been

long way off.
than a minor

considerably

the

required.
come

cash,
which is already in superabund¬
ance, is unproductive. Total bank
deposits today amount to $165.4

by the Dowthe maximum,

approximately 21%, yet
well-situated
stocks
are
considerably more despite
.

fact

that

there

greater than

has

average

This

Announcement

offer

herein. The

sell

nor a

Not

a new
#'

the earnings outlook. Restora¬

tion of

normal market

ditions should be used

for

reappraisal
holdings. :

1 ;

•

* "V!

The

appointment

Melencio

•.

New

Sept. 3 by President

pur¬

£$$?$$$£

Roxas,

according

Press advices from
added:

"Mr.

York

Melencio

was

the

Bureau

Washington
war

Justice of the

Philippine
he

was

an.

r'p'fr

'V:'-

/-,v

's
>
* i"
'

Metal Forming Corporation

pur¬

(An Indiana Corporation)

another

;

€>

•c'

lift'
J •;

..."

continues

.'>■

and

ViCe

i$' cautidn; 'the
is not

ter to be

"Sad Sack."

;

•

COMMON STOCK
■

'•

•.

•'•U:''-'/: •'i-V.'?:/

•

vi-.'ic*;.:

(Par Value $1 Per Share)

Price $7.50 Per

A copy

of the prospectus

may

be obtained from the undersigned

the

The outlook

business

activity,
however, deserves careful watch¬
ing because of a very vulnerable
price structure.
My parting adworld

■;

equal that of

importance.

trade

•

end1 of

the

coming, but it's bet¬
"Gloomy Gus" than a

First

Colony Corporation

acting
Press
1919.

Associate

Philippine Supreme

offer to buy the securities mentioned

' 7,

:v't;

Court."

an¬

Manila, which

Before the

was

Associated

50,000 Shares

in 1946

Consul

solicitation of

•-

Jose

Philippine

director

.*•

»
v

con¬

period
individual

Named Philippine ConsulGeneral at New York

offering is made onljl by the prospectus.'

issue.

V'1"

* 1 * '

Judging from first hand obser¬
vations, it can be said that solid
investment buying has made its

not an

been

impairment

General

■:Observations

Idle

alent

many
down

the

Measured

Industrials,

nounced

attractive media avail¬

investment.

whole.

would

about

exhaustion

and

position

This

further prolonged

power.

even greater pro¬
portions-than for the market as

only from
period of bus¬
activity with excessive pro¬

than business aspects, we believe
it is reasonable to conclude that a

some more

con¬

not

vulnerable 'business

rather

■;

peak

has

and is

—

develop
depression,

can hardly be any danger¬
inventory positions.

the

boom

there

financial

short,

reached

with the acute scarcity of
goods in practically every field,

Considering

postwar

over,

ous

many

likely to

tion.

corporation finances
ever

be for some time,
capital goods expansion
far from copiple,te,
a near-term
depression of serious proportions
hardly seems a realistic expecta¬

as a

—

demand

and with

rowings to: liquidate in the; busi¬
picture

the

lines still not satisfied

sumer

although it is : recognized that
present prices may be high in the
long run. Furthermore, there are

ness

within

earnings and larger .'dividend pay¬
ments during coming months.

that it is difficult to visualize apy

ahead

industrial

terials. All of this it is anticipated
will
be
translated
into
higher

obvious

fairly

imposed by available labor sup¬
ply, plant capacities, and raw ma¬

such

respect

in
bank

top-heavy

1937.

In closing, may I summarize by
saying that the credit and bank¬
ing situation is in a 'strong posi¬
tion and management of the pub¬
debt

has
high

many

Reexamination of the business
outlook by unbiased
analysts, in¬
dicates that further moderate ex¬

that

the railroads in 1941.

lic

advan¬

transactions

time to improve

same

there is something to liquidate in
the economic structure, such as

only
United

demand—with

further

security position.

Reexamination

that

weakness, which must certainly
be recognized as something more
than a possibility, would be con¬
sidered as a buying rather than
selling opportunity.

Indiscriminate

Fundamentals

permanent

in¬

the industrial
earnings picture. If
this does not
occur, it is clear
the

the

duration of
the present
down¬
swing
will
depend
upon
the
strength or weakness of the eco¬

that

rather than

porary

nature, that the worst of the ad¬
justment phase has taken place*
and
that
good grade dividend
paying equities are in a funda¬
mentally sound position. Hence it

the

bonds.' Obviously,
level of the market
on

very
dicates

approximately 15%.
as

today's
high
employment
and
large payments to veterans—for
only 5,000,000 new and used cars!
Second, press releases say by 1947
the passenger capacity of the na¬

for

Not Use

real

equities

400,000 people who probably
would buy cars, giving an indi¬

utmost

Up Savings

only

less for "keeps."
Plainly it was
predicated on the assumption that
present difficulties are of a tem¬

that

the

that/ there

that

Consumer Spending t Will

indicates,
people

definitely wanted to

it.

authorities.

the

ment

"backlog" of demand be¬
me give you just two sta¬
First, the survey referred

cated

the government,
monopolized bor¬

except on the part
speculators
anticipating
re¬
placement at subsequently lower
levels. Thus, it would appear that

was 5 months and 1
the
price
decline

^ I

before

and

Furthermore,

movement

tye duration

chase

over

Cessation of Govt. Borrowing

there

prospect

paying equities with bonds would

States

"assets"

and

scant

mass

was

3,600,000

corpora¬

—

bonds,

for

be on the conviction that
corpora¬
tion dividends Trill be
slaughtered
to a point where the

demand may not be as

tistics.

still have $171 billion
deposits and money left! (And,
these
$171
billions
are
liquid
the

cepted

seem

of any sustained
from equities

con¬

offerings with¬
price recession. Such
for cash and more or

out further

buying

The end

lief, let

assets

long-term

would

than

on¬

sufficient

With respect to the widely ac¬

thing to remember in
is that although
a

prime

less

approximately 20% from the
peak, in the case of the Indus¬
trials; in the case of the Rails,

generally thought,
forecast the beginning of the end
of the present high-price struc¬

connection

credit,

about

with

initial

passed

great

•

there has been

trasted

seems to me that

consumer

increase will not be
cause lenders "to sing

in the streets."

today yield close to

equities

months and 7 days carrying prices

boom, the stock market crash,
and, above all, the discovery that

slightly firmer long-

rate—but not much!

tainly, the
enough to

two

prime

the

week

last

distribution, the approaching end
the
inventory
replacement

demand factors indicate the prob¬
term

Since

slaught

however, that Federal
and credit policy and

monetary
the various "natural" supply and

ability of

word

for

bonds.

are

after

appearance

volume to absorb

prices
their peak in many
of UNRRA buy¬
ing, the filling of the pipelines of
have

lines.

way

does mean,

that

mean

say

prices, it

mean that the government cannot
force long-term rates down fur¬

ther;

Prices Passed Their Peak

lasted

$52.4

down

V probably passed the lowest point
in long-term rates.
This does not

decline

with

$55.3 in 1929.

available for the average investor

1929-32. With respect to the 1923
it might be pointed out

that

compared

Practically the only other media

period

consumer

large enough for
carrying on regular expenditures

bank

correction

billions in 1937 and

pre¬

under restrictions which will

Breathing Spell Ahead

billions

the return of
durable consumer goods in quan¬ long term cyclical upswing that
has yet to be completed.
tity will not
cause
wholesale
; As far as orthodox
terminology
withdrawal of ,• savings for such
is concerned, the present market
purchases.
Those who
expect
can hardly be classified as other
this to happen overlook both the
than a full-fledged bear move¬
basis of saving and the basis of
ment. Such periods have lasted
spending. People save for emer¬
anywhere from a few months as
gencies and "rainy days" no mat¬
in
1923, to a few years as in
ter what the advertisements say

length in
A
National
Survey
of Liquid
Assets, a recent study of the Bu¬
debt, in the process.
reau
of Agricultural Economics
Clearly, present government
of the United States Department
policy is to continue the deposit
of Agriculture.
A summary of
reduction program started in Feb¬
the
Prospective 4 Spending
and
ruary. !■ •
3ft:
Saving section appears in the Au¬
The Impact on Interest Rates
gust issue of the Federal Reserve
Now this program of deposit Bulletin.This statistical
survey
reduction and of narrowing the indicates that "The
liquid assets
credit base through redemption held by the
majority of people
and through refundings with is^- cannot be considered to constitute
sues

(Continued from

other

acquisition of government securi-ties by the banks and not increase
the interest cost on the public

A Stock Market

deposits, in contrast to
deposits, will continue to
some time—certainly, as

page 1459)
employment and business
resents the
first leg of a pro¬
activity continue at high levels—
longed bear market or largely the
but the rate of growth will de¬

long

1475

It is my opinion that

out of business in short order. J

"unnecessary" ex¬
deposits through the

for

grow

further

vent

pansion
v

savings
demand

;

cial factors.

Buckley Brothers

LAICNANIF&'
CHRONICLE

THE COMMERCIAL

J476

Thursday, September 19, 1946

sibilities myself; I don't want
to
,

{Continued from page 1458)
optimistic about .their future val¬
ue, one must be more 'optimistic
about the tax-paying enthusiasm
of the next generation than we
are about the tax-paying enthusi¬
asm of the present generation. We
are all for reducing taxes now and
yet Our outstanding, government
bonds are dependent on the faxes
to be paid by our own or future
generations and nothing else.
We have a few- millions of coins
in circulation^ somewhere around
$26 billion of paper money in cir¬
culation, and about $140 billion
in bank accounts which shifted
around

important

most

the

are

part of that which you and 1 use
for money today.
This total of

■

fty'-'.

m •■■■■

;■

The Treasury has
government had gone out into the paid off about $15 billion of its
outstanding
debts,
community and was there being previously
shifted around from one to an¬ bringing
the total down from
other as part of the then current nearly $280 billion to about $265
money supply. The Hornet went billion, .but that very excellent
to the bottom; nothing unusual way of reducing the money sup¬
about
the disappearance of the ply, that is, paying off the debt
wartime production with all of which created ft, has so far pro¬
the human effort that went into ceeded only through using the ex¬
that production. But what I want cess proceeds of the Victory Loan
to call your attention to is that last December. The public bought
the money which started with the about $21 billion of government
bank account given to the gov¬ paper at that time, which together
ernment in place of its bonds sold with non-borrowed receipts gave
to the bank has been shifted out the Treasury a bank balance of
into the community, is still a part $26 billion at the end of the year.
out, the Treasury
of the money supply of the coun¬ As it turned
try, and will remain a part of the didn't need that hiuch and it has

the first instance in favor of the

supply of the country, un¬

money

less and until those bonds on the

first of March.

brought its balance down to about
$10 billion currently by using the

billion of money- supply basis of which the bank account excess proceeds of the Victory
compares with somewhere around
Was
originally
developed
are Loan to pay off some of its out¬
$60 billion in 1939 and somewhere either paid off by the government standing debt. That process of re¬
.around an average of $45 to $50
or sold out of the banking system
ducing the debt is just about con¬
billion in the years just before
to a non-banking buyer, who uses cluded because there are hot any
this last
war.
You know, 'but
not his power to create new mon¬ more excess proceeds of previous
nevertheless for my purposes here
ey, but the existing money in his bond sales which can be used to
today I have to remind you, how
possession to pay for them. That's reduce the debt.'
that supply bulged from around
the way we got this huge supply
The second method that im¬
$50 billion to around $170 billion. of money, the greatest part of
mediately
occurs
to
any
one
Principally, it was due to increases Which is still in the form of bank
thinking on this subject is to
in bank accounts, either by direct
accounts, subject to draft by some¬ raise enough' taxes, reduce ex-;
purchases of government bonds one and in this modern world the
penditures enough to provide a
by the banks from the Treasury principal kind of money made use
surplus in the Treasury and use
or indirect purchases
of govern¬ .of, by all of us.
that surplus to pay off some of
ment bonds by the banks on the
Now, if by any chance, you the maturing debt. We have $75
bond market. The banks, when
have considered the subject of billion of U. S. Government obli¬
buying directly from the Treas¬
how much money is enough, i gations maturing in the next 12
ury, or buying; in the market,
All the Treasury
think you will be prepared for or 15 months.
don't use, as you or I as buyers
my next question which, is: As¬ needs is the means to pay that off
would, pre-existing money; they
suming that we have too large a and it can provide that means out
set up a new bank account, which
.supply of money as the result of of a surplus in the Treasury which
pays for their purchase in favor
the huge bank credits given to can be had by a cut in expendi¬
of someone who has the power to
$170

draw on that bank account for

his

purposes.
The Federal
Government sold its securities to

general

volumes, banks

the banks in large

paid for their purchases, not by
using pre-existing money but by

setting up a bank account in favor
of the government. The govern^
account to

bank

that

used

ment

for materials and wages, and
used the bank credit
which they obtained from the
government's payments to pay
others, and so, that bank account
pay

its

payees

created in favor of the Treasury

in consideration of its bonds de¬
livered to the bank was scattered

the

government for its war pur¬

poses, how can we reduce the ex¬
cess
money
supply to a total
which

Yes,

Some of the

phrases that finan¬
discussing

consistent

activity?
interest in that

institutional

I confess to

sonal.

and
very

per¬

great

interest because most of my bus¬

iness activities

are

handling other

people's money and to a very
large extent investing other peo¬
ple's money for the long term. I
feel the pressure of this great
supply of money left to us after
the war period was completed be¬
cause

some

gangs
cial"

have

you

question,

around

through the community.

will

with peactime needs and

through1 the

moves

population

in spots where it be¬
available for investment.

comes

tures and an excess of income.

will

plenty of opportunity
to do this without going on the

under¬ vestment makes it difficult for me
standing. An expansion of bank to perform my job, my principal job
credit, they will say, has taken of investing other people's money
place
used

in
to

this

country.

think

phrase has

you

to go

and borrow. But the

to mean, in this
where semantics

come

modern

world

plays

important

always

bank'credit

something that enables
to the bank

part in our

life, not that creditable position
in the financial community which
enables you to go to the bank and
borrow when you need to, but
that which the bank gives you
when it makes
a

draw.
an

As you

has

like, there has been

expansion

there

loan to you, i.e.,
which you can

bank account

bank

been

credit

investments

But you have an interest too and
has every man and woman in
the

and turn them

where

munity

loose in the

they

are

com¬

used

money.

this

certain trend

toward

higher and higher prices
higher and higher liv¬
ing costs, lower and lower pur¬
chasing value for the unit which
and wages,

call the

We're in the

round

second

right

dollar.

of that procedure
Prices have been going
Those who represent labor
now.

those

feel

the crushing effect

higher

prices and the
higher costs of living are moving
for higher wages. And you know
that

when

that

wheel

begins

turn in will take heroic efforts to

stop it.

Financing The War

Now
assuming that there is
something right about my posi¬
tion, that $170 billion is too much

struments of war; it

money

paid, for ex¬
ample, in that way for the carrier
"Hornet," 60 million dollars ' of
draft

that bank

the

material

in a country which is now
least nominally at peace and
which prior to the war could get
at

acdount went

men

and

the

along

with

money

supply, how

workers; the carrier went to the
a magnificent job

get it

Pacific and did
for

$50

billion

going to
the point where
are we

economic life and financial trans¬
actions will be stabilized and not

few months.

Meanwhile, the
government had expended all of
a

down

about

years

Treasury's operations, but of the
banks' operations.
These banks
were npt supporting the govern¬
ment bond market because they
,

were

bidding

bonds.

the

up the prices of
fiscal authorities

had wanted to protect

the holder
bonds, who was in
distress, they could have provided
of government

that the banks could buy govern¬

only at par, which
would have protected the legiti¬

ment bonds but

mate

previous purchaser who was
distress and needed the

some

But what happened was
buying by the banks sent
the 2V2's of '67/'72 up to some¬
money.

that

thing like 109; the 2Vzs of '56/'59
up around 107,
Banks were buy¬
ing not to relieve distress selling,
but for bank earnings.
What I
bear in mind is that,

want you to

should suc¬
in getting a surplus and pay¬
off some of its debt, that
if the Treasury

even

ceed

ing

would not reduce the money sup¬

ply, if the banks are to be per¬
mitted to go into the market and,
as Governor Eccles put it a short

"monetize" more of the
Federal debt by buying bonds
held by non-banking holders.
I
won't go into detail as to how that
time ago,

could

done

that as President
Reserve

eral

but

you

assure

Sproul pf the Fed¬
in this City

Bank

short time ago, it's the
triple play between the

put it a
result of

Treasury,
the Federal Reserve
and the banks and that triple play
could

control the

which from this point
banks monetize further

the

reversed

extent

portion

public debt

the

hands and

the

which

bank

for

subject to these current jumps?

payment for

and the bank account created in

terest rates

down

Reducing The Money Supply

been

going

since

about

the

by keeping up

increasing that money supply.

They have these recurring matur¬
ities of $75 billion within the next
months

few

continue

them

the

that they have

low interest fates

maintained

if they are

and,

refund

to date, they must
big money supply and they
must be able to go to the b&nks
in the last analysis if they can't

have

get the people to buy their bonds.
We should have done a, better job
of

deficits ' during

the

financing

by selling more govern¬
ment bonds to the people ahd.to

the" War

buyers.' In Canada,
population is about

non-banking
their

where

one-tenth

is¬

ours, - they
one-fourteenth

of,

about

sued

the

number of government bonds that
we issued here.
Now, what did

They looked over their
decided what kind

they do?
situation
of

and

bond for what term, at what

interest yield

lic

their investing pub¬
expected to take

should

and, generally speaking, theydssude a 3% coupon bond maturing
at 15 to 18 years from date and
put on the pressure to sell them
to non-banking buyers. And the

did the buyers any

pressure never

didn't

harm.

started out with

that.

smart aleck no¬

tion that the credit of this country

good for a 2Vz% bond and we
a bond except the

was

would not sell

bond to finance the war
an interest yield beyond
Vo<&. When we didn't sell enough

savings

deficit at

If them

the

people, then

dumped the rest of what we had
for sale into the banks. What we

dumped into the banks was prin¬
cipally short term Treasury Bills
for 3 months, Certificates of In¬
debtedness - for

year,

short term paper,

and it is the ma¬

who

The

banks have paid /top

particularly public expenditures
by billions* It was easy to raise
them by billions during the war,
but it is difficult to cut them.
I
don't

mean

difficult

for ,a

administration to

Deal

cut them,

difficult for any

mean

tration

them.

cut

wants lower taxes.

New

adminis¬

Everybody

Politically it

thought to be desirable to
suggest lowering our taxes, but if
now

lower our taxes and can't cut

expenditures there's not much
hope for lowering our debt, and
if we can't lower our debt, we're
our

going to have this war time mon¬
ey supply with us for a long time.
i

■■

Stop Bank Buying of
Government Bonds

there's

another

way

which that debt and money sup¬

ply could be administered a little
in the direction of less rather than
more

could

and that

authorities

Reserve

eral

is that the banks

prevented by the

Fed¬
from

buying government bonds on the
market or making long term coiv
porate loans.

Because in each in¬

stance of such

purchases the banks
They

increase the money supply.
create

bank account in favor of

the other person to their deal
that bank account goes out

and
into

and remains
there until the deal is reversed or
is taken out of the banks.
The
money

supply

during the last few
the market, $50 billion
of government bonds, and they're
still buying them on the market.
When the Treasury made a rule
in 1943 that the banks would hot
banks bought

years

be permitted to

subscribe for new
issues, the banks did their buy¬
ing on the market. Had the rule

going to

buy
U

prices for them in most instances
I mean banks all over the

■

country—and they could not sell
without a
loss at prices
which .noh-bankihg buyers would

them

be likely

Well, all of this

to pay.

to point out that if the
money supply, now 3 or 3Vz times
what was considered to be nec¬
is

just

and desirable before this
last war, is too large, these are
some of the ways in which that
essary

supply can be brought down. And
I am saying -to you they are diffi¬
cult procedures,

difficult for ordi¬

business men, much more
difficult for public business men
because in the last analysis pub¬
lic business men are controlled at
nary

and politics is the science

determining what public offi¬
cials can do in view of that con¬

trol at the
:

polls.

; (

Well, maybe you do not want
us

/The

Secretary of the Treasury

said the other day that

the Treas¬
would maintain its policy of

ury

supply reduced. None
wants his own personal sup¬

tain

its

interest "policy

low

supply of that which is used for
money in this country ahd it .-can
only maintain this excessive' sup¬

ply of money if the Federal Re¬
authorities go along. Gov¬
Eccles -has said that the

serve

ernor

Federal

authorities

Reserve

will

along with the Treasury in
maintaining easy money.
"Easy
go

Easy for whom?

money"?
object

money

easy

business

small

business

man

I donrt
for the
the

borrowing

for. commercial

purposes,

I'm not

enthusiastic

our

for funds.

need

big

money

fathers used to do when they

over

had
'But
easy

government, par¬
ticularly when that easy money
for the Treasury is maintained by
money

for the

reduced. I know that. I'm
speaking now of the individ¬ unsound financial methods which
ual's Supply of money but of the will be detrimental to the entire
supply for the whole country and country and everybody in it. Our
I'm speaking of it as a force in the public
men
speak of lowering
direction of inflation which from taxes to help the little man, they
the point of view of the public speak
of low interest- rates as
welfare, and in the long run that beneficial to the mass of average
means the welfare of each of us, is
people in the country, but the
a
present
danger.
That great simple fact of the matter is that
money supply is the real reason
easy money for the government,
for the increase in prices, the re¬ low interest rates for the govern¬
sultant demand
for increase in ment's obligations, are the heav¬
ply

not

the high prices being paid
estate and stocks—until
last week. What happened to the

wages,

for

real

stock
am

market?

do pot know.

investor,, not a
speculator. The trend
dollar's purchasing value

long

term

short term
of

the

iest

charge

indirect

living.
prices

taxes

for the

feel

sym¬

put

have

to you.

his

our

were

ever

has

have to

finances had

now

cost

things he

in taxes, if

sound basis.

man

He is pay¬

paying

have than he would
pay

and

average

ing for it, not in direct taxes but

been

resnonsibilities.

the

in this country today.

I have banking respon¬

ex¬

cept by maintaining an excessive

also been made at that time that

meaning.

It can't main¬

low interest rates.

emergency

the money
of

Scores Maintenance of Low
Interest Rates///j

:'■;■/,

—and

the polls

Well,

maturities.

the

But

the banks should not be

had obtained

full

other way in

The

must, as long as that money sup¬
permitted ply remains anything like what it
buy Treasury obligations •* on is, be- downward and the prices
that great ship and its
payees
Well, the first way in which that the market, the rule prohibiting of the things you buy with dol¬
made use of the payments the money
supply can be brought subscriptions by banks to new is¬ lars mUst be upward. Our friends
government had made to them, down, is by the process which has sues would have taken on real in public office, carrying political
the funds

from

them,: know

;

they can only keep in¬

life insurance hands.

them?,

the

The government drew on such
bank accounts and paid for its in¬

supply during the last few
is the result not of the

money

well that

folios.

'■

with

your

bank accounts, adding to our

new

out of the war for over a year.

and

just for

information, $50 billion of these

isn't easy to cut expenditures and

is pressing prices up and up with
the resultant pressure for higher
wages

but

pathetic. with

you

critic

turity of that short term paper,
"j
month after month, now and, for
which there the next few years, certainly for
might be some control of or re¬ the next 15 months, that bedevils
somewhere around $3,500 million duction
of
this
money
supply the Treasury operations in trying
a month,
the deficit at the pres¬ would be to require the banks to
to maintain a low interest rate
ent time is just under a billion sell
some
of
the
government and at the same time refinance
dollars a month and we've been bonds now held in their port¬
.

great supply of money which

of.

$140 billion of bank accounts

because

country

same

somebody has the right to

draw

quality

up.
and who

good

and at reasonable rates of return.

expansion of
bank accounts. The point is that
an

banks,

rabid

that

which is in individuals'

earth for purposes

There is

the

I'm

Well, 1 you know how
hard it is to cut expenditures. Ex¬
penditures of the government in
peace
times
are
still
running

ligations.

use

that

market to buy its outstanding ob¬

much of it compared
these matters have
not always with available investments that the
been easy for me to tie down to competition pf money seeking in¬

experts

have

think

put on a
* \ -

predictions to make

I have no tips to give you.

merely

call

your

attention

Volume 164

Number 4526

condition' arid try to show

how

has.

come

difficulties

ought to

changed,

the

and

more 1

lower

about

it,

insurance

you

the

and

changing

supply,

money

interest

lower

about

worry

It is true

us.

willing to make loans for the
'long term. When those few do
make

than it

until

there

are

few

are

long term loans, they will
in addition to the
rate

want,
.which

them to

competition enables
charge, something which
^represents the inflation risk in

for

That

term investor I look
of two alternatives

that

money in
increases the

one

some

in¬

vestor, but with great concern as a
.citizen of this country.
;

went to levels that

Anticipates Continuing Inflation

necessarily

are

difficult for

that

pay

the

net

Again

in the interest rate.

other hand

.heroic

decide

in¬

those

of you

succeeded

take

large

who

licensing,

attention

1946

all

New

the

York

brokers' licenses

time, expire

will, for the first
Oct. 31. Applica¬

tions for renewal of. such licenses
for the period

of Nov. 1, 1946 to
Oct. 31, 1947, are being mailed to
the 20,000 current licensees be¬

brokers'

license

law

was

tion date of Oct. 31 in place of the
former date of Dec. 31.
All re¬

newal

applications

which

are

sum

this year at about three
per cent. To my colleagues in the
Equitable whom I see in this au¬

can

higher interest rate than that

supplement

those

available.

the

get

larger yields

that

drive...,

bond

can

mine

that

the

law

has

not

been

violated."

Pierce Hastings With

offered, the then
W/%% due June 15,

(the

White, Noble & Co.

During this period the 23/2s due June
15r 1967/72 sold as high
as
101
6/32nds, and when the drive was over were selling at
1QO 29/33nds.
\
"
■

mortgages.

restricted

1967/72) did not sell below 100 20/32nds during the interval be¬
tween the announcement of the
financing and the closing of the

Don't think that I am, as a life

outstanding

with

little

Dec. 15

The Department contemplates
undertaking investigations of li¬
censees who fail to
make timely
application for renewal to deter¬

•

issue would be and when it would be

new

longest

three per cent, especially if we

it will also be true, that there will

Past records of financing by
the Treasury, particularly dur¬
ing the Victory Loan, showed that even after it was
known, what

dience I may add that we can live

measures, v

down to about 100 27/32nds.

investing a very
of money in securities

Administration of this government
stabilize our money situation, then

now

called
in

by the 1945 New York
Legislature to provide an expira¬

longest restricted 2.y2s, would bring the price of this bond

during

charge

that

amended

have

and with the
cooperation of the banks, the fed¬
eral. fiscal
authorities, and the

fact

■„

to about 19/32nds.
; The low
price at which the restricted 2V2s due
Dec. 15, 1967/72, sold last week was 101
14/32nds.
f„ Deducting the
19/32nds in income that would be passed
up by not buying the out¬
standing bond now from the low level reached last week
by the

life in¬

are

policyholders that

surance

On the
to

10,

"The

right back on
citizen.
However, I

should say by way of reassurance

crease

Sept.

ginning Sept. 13.
The Insurance
Department in calling attention to
this, said:
' ;

been responsible

";/■

TIME FACTOR

comes

the -average

our

some

important market factors that have

...

cost

benefit to the extent of

proportions from

...

enure

to modest

continues, will have

loans.

will

tendency to

uncertainty created
by the belief that there would be a new issue of restricted bonds
in the near future.
.It is believed by some that with new
financing by the Treasury, the longest restricted bonds would
go down in price to about lOO1/*.
"
<

the business of making long term

That

One of the

policyholders,

our

This will have

no small measure for the lack
of interest and support by nonbank investors in the ineligible
issues, particularly the 2V2s due
June and December 1967/72, has been the

have

policyholders.

our

on.

money

men

Although there is

...

mass,

'"
' ■ T' postmarked not later than mid¬
When the new financing will come along seems to be a matter of
their insurance than they have ;
night, Oct. 31, will automatically
heretofore paid. The interest rate conjecture, although there is not the same feeling now as in the
past, continue the license in effect un¬
is important, though not the only that, the new offering will be made this
year.
It may be that cir¬ til a renewal license is issued by
factor in determining what our cumstances will be such that there will be no'
offering of government the Superintendent of Insurance.
securities until the early part of 1947.. V
results are and what our net cost
Assuming that there would
"Licensees who fail to apply for
will be.' My interest in interest is be new financing by the Treasury near the end of the
year, say Dec. renewal before
Nov, l lose their
not personal; it is for our policy¬ 15, then the loss of income (by refraining from
purchasing the long¬
authority to do business after Oct.
est outstanding 23/2s) from now until
holders.
'
*
that'date would be equivalent 31.

We in the life insur¬

business

ance

pay

likely

'future will be.- With less compe¬
tition in making long term loans
have to

it,

if this process

impossibiblity, either as prophet or
statistician, of foreseeing what the

will

here

earn

First, we shall continue to have
.the
inflationary trend until it
reaches the point where few peo¬
ple, few representatives of insti¬
tutions will be willing to make
long terrti loans because of the

borrower

amount

for

makes

past year.
the amount

insurance

attractive to investors.

were

in the income that will be
obtained.
cushion the recession, and to confine

the

New York State Deputy Super¬
intendent of Insurance Carl Typer-

still considerable bearishness
around, it seems as though prices as a
whole reached levels last week from which further
declines will re¬
sult in purchases at least on a scale
basis, by those who are interested

margins which would be
available for dividends. It makes

;

the

life

invest

It
to

higher rate.

whole

simply reflects
the community.

satisfaction

as
a
long
forward to

with

Therefore,

the

For 1946 Expire Oct. 31

Despite the uncertainties and confusion that exist, the govern¬
was able to
rally from recent lows because yields

ing this year is now millions
greater than the total amount paid

their long term loans.

ment bond market

Our group insurance paid for dur¬

less

Reporter

By JOHN T. CHIPPENDALE, JR.

the whole of last year.

was

NY Brokers' Licenses
Our

have

larger and larger funds to invest.
Our new paid-for ordinary life
insurance business in my own in¬
stitution is now greater in volume

rates,
people who

1477

unusually or un¬

man,

justifiably interested in the pros¬
pect of * a little higher interest
rate. We are getting along pretty
nicely we may say to those who

changed. If it isn't
trend will be to

and

THE COMMERCIAL A; FINANCIAL CHRONICLE

DETROIT,
MICH.—Pierce
A.
formerly with Baker,
Simonds & Co., is now associated
with White, Noble &
Co., Buhl

Hastings,

Building,

trading manager.

FULLY DISCOUNTED

As yet the market does not have official information
issue will be offered, although it seems to be

new

to when

trying to fully

discount

such

EQUIPMENT

event, which could mean that it has been overdiscounted, particularly if the much discussed financing should not

(Continued from page 1460)
.which

turn depends upon the spond to the position of the pound
of international events, he in which they are expressed and
'would not be buying exchange in will, to a considerable degree; re¬
a

flect

discount of 333A%.

fairly depend¬
able barometer of world affairs,
economic as well as political. This
tis no longer the case and will not
be, so long as the owner of the
-regarded

as a

position freely to trans-

'■

or employ
the proceeds from
their-'sale. If he desires to do so
jhe can do it only at a discount

alia,

will

terms

re-

New

York

dollars,

-Recent Price,

S-'y

Shillings

'(Courtauld's

—Z~ '

Drug.
-

;

New York

Parity Price
$13.08

10.00

12.69

9.00

11.27

■■v

6.87V2

$3.08

3.21

8.45

.Vr'

3.50

4.43

3.18

5 23

3.18

17.11

'3.18

quired

was

not

too

sizeable

because

lows

the

floating

not very

was

large.

supply
.

noted
price which in¬

for exchange on Lon¬
$3.17,
compared
with

vestors pay

don

13.50

From the above table it is

that the average

4.12 Vz

result

from

financial

the

Offerings Wanted
Immediate

NON-BANK SELLING

deal.-

;

According to the Secretary of
Treasury, the sharp decline

the

firm

bids

practically all issues, jy

•;■'''"'v"'^

Non-bank

investors are still disposing of the
partially exempt
bonds and using the proceeds to take on the restricted
23/4S and 2V2s.
Although these institutions have been putting some new money
,

Weekly List

into the market, it, is reported that they are more inclined
to sell the

high premium partially-exempt obligations and use these funds to
purchase the ineligible bonds,
J. Large commercial banks in New
York City and Chicago are the
principal buyers of the partially ex¬
empt bonds.
This switching by non-bank
investors, it is
.

continued as long as they are able to
get satisfactory prices
partially exempt bonds.
Yields on the securities that are
being sold by these institutions are still attractive to some of the
...

;

that

have

been

waiting

for

this

issue

furnished

upon

;r\y.

Complete dollar appraisal
issued each June 30 and
December 31.

y-V-y

New York City member banks were
fairly sizeable buyers of the
eligible bonds last week during the period of weakness, with indica¬
that

Semi-Annual

Valuation and Appraisal

become

eligible..,.

tions

Gladly
request.

indicated,

will be

institutions

Anglo-American

'<:■

There

would most likely have been a much smaller amount of
bonds for
sale if it were not for the weakness in the stock
market.

■V

ac¬

...

CERTIFICATES

Commercial banks are showing a real interest in the now
eligible 21/4s due 1956/59 and in addition to new money purchases
are disposing of some of the
2s and putting the funds into the
2XA% obligations.
A large amount of the recent purchases of
the 2*4s of 1956/59 are reported to have been done
by the smaller

3.27

3.10
'*

obligations at last week's

commercial banks.

3,17

19.12

14.75

United Steel

' :

slightly.

Nevertheless, it is reported that the amount of securities

for the

of £

LI,™—
:

Valuation

$10.50

and

Indicatecl

London

-------; 63
Pure

Boots

moved up

that is, U. S. dollars,

subjoined table presents a
representative British
shares, the prices recently re¬
corded on the Lond<?n Exchange,
the prices which can be obtained

the moment amounts to
Since the price
inter

expressed

The

list

one-third.

iof equities,

15, 1967/72 were available last
yield 2.40%, that the institutions were interested and did
buying at those levels and continued to take on these bonds as prices

haven for funds which seek

real money,

about

pound

tfer

? Which at

the restricted 2V2s due June and Dec.

protection against a possible fur¬
ther decline in the value of the

|British securities and other assets
is not in a

opinion

„.

week to

concerning the
exchange, the advance
in the price of equities, ceteris
paribus, "will have to be regarded

£;■' In the past the London market
:was

the

future

TRUST

,course

London at

until

much later date than is expected
by some and would be
different from outstanding issues,
There is no doubt that when
come

these

purchases

quite

were

evenly divided between
The 2% % due 1955/60

the

r
was
$4.02V2, the. official rate, a dis¬ in securities prices should be at¬ taxables and the partially exempts.
count
of substantial proportion, tributed to "the general situation," reported to be the most favored in the partially exempts, with the
indicative of the fear over the and that there was "nothing in the 2%% due 1960/65 next in line.
ability of Britain to maintain the international economic situation to
LOANS DECREASE
existing rate. Prior to the exten¬ cause a break." It may be stated
The recent weakness in the securities market was reflected in
sion by the United States of a that competent securities analysts
the decrease in loans of New York City member banks for
the carry¬
$3%" billions credit, Britain's abil¬ are not concerned with the inter¬
.

...

Monthly or Special
Appraisal
Our

experience and facil¬

ities at your

disposal.

■

ity to maintain the pound at the
$4 level -was seriously questioned.
Following the' transaction, such
doubts were removed, and in some

national

believed that
an upward valuation, possibly to
the old parity of $4.8665 to the
pound, would be effected. Dark
clouds on the international hori¬
zon changed ail this: The Middle
East, Greece, India, and the Med¬
iterranean problems offset what¬
ever
benefits were expected to

remarks, "I'm not in international

quarters -it was even

but

economic

rather

national

respect

political
to

politics,"
ical.

pected

which

may

situation,

the

inter¬

situation
the

with

Secretary's

be regarded

typ¬

important change is

.unless,

measure

among

with

and

until,

harmony is

ex¬

some

restored

the nations of the world in

ing of governments and other securities.

decline in loans on.other securities

for

margin accounts
issues

new

are

closed

terminated.

member banks, has been very
Loan.

•

the

week

ended

was,

out

smaller than those

The decrease in loans for

City

since the end of the Victory

The total decline amounts to about
1,810,000,000, consist¬

PHILADELPHIA

PEnnypacker 5-7330
NEW YORK CITY

carrying

$1,037,000,000 drop in loans by dealers and brokers and

$773,000,000 decrease in loans by others.

INCORPORATED

gov¬

by the banks and syndicates

substantial

STROUD & COMPART

government bonds by dealers and others, with the New York

ing of

occur.

For

ernments it is expected that the former will show larger decreases
more

general and the U. S. A. and the

hope that this will

U. S. S. R. in particular. There is
some

Sept. 11, these institutions reported a decline in such loans of $78,000,000, of which those for carrying governments were down $51,000,000
while those on other securities were off
$27,000,000.
Although the

REctor 2-6528-29
Two

private wires-

Philadelphia,

New

York

Teletype—PHLA 296 & 297

15.9%; maximum decline was

Stocks

Bank and Insurance
=

de¬
clined well below average,, as also
did National City,
while Chase
declined substantially more than

VAN DEUSEN==

This Week

Bank of Manhattan,

of bank stocks since the lows of 1942, compared
with industrial stocks, presents an interesting study.
It is set lortn
in the following figures, in which the American Banker Index of New
York City bank stocks is compared wtih the Dow Jones Industrial
The

progress

Average.
Bank

Industrials

22.9

92.92

*52.1

*212.50

42.0

14, 1946-—
May. 29, 1946
Sept. 10, 1946—.

167.30

Stocks

41.22
212..50

52.1
42.0

high--

1946

marked the low
point for both indices, but the
1946 high was reached by the bank
stocks on Jan. 14, 1946, compared
with May 29 for the industrials.
April 28, 1942,

Industrials

25.4

low—

1946

10,

Sept.

The dates of

Dow Jones

the

14 to

they com¬

1942 lows

relation

dustrials, + 128.7%.

highs

1946

from

Declines

Sept. 10, 1946, compare as follows:
Bank stocks, —19.4% from Jan. 14;

29.

industrials, —21.3% from May
; Relative to 1942 lows,

they com¬

1932
compare +65.4%

Currently, with respect to

basis

and +305.9% for
Thus, on a long-term

behind

stocks are far

bank

the market.

Generally speaking, bank stocks
are
less volatile than industrials,
even

the "blue chips" which con¬

the

stitute

Average.

Jones

Dow

example, in the recent market
break between Aug. 26 and Sept.

For

10, bank stocks dropped 12.5%
1946: and the Dow Jones industrials
Banks, +83.4%; industrials, 16.0%; between May 29 and Sept.
10, banks dropped 12.8% and in¬
+80.0%.
V;:
•' •
V
Thus,
bank stocks currently dustrials 21.3%. ; v.

pared as follows on Sept. 10,

market,"

when

But

the

base.

back further

clines

the story is

1946

the

compare

of 1932,

lows

from

measuring

when

1942 lows

Since

"behind the

cannot be said to be

the

highs,

individual

de¬

stocks

bank

set forth in the ac¬

companying tabulation. The aver¬
decline to Sept; 12 of 17 stocks

age

—Current Market Ratios—

fEarn:*'

\\,7.

9/12/46

1/14/46

V 7.''7'

•

Decline

Bank

Bank of

.35%

Manhattan—..

Commercial

National-

18.3

0.95

3.9

7.4

14.9

0.95

3.7

8.1

their

disgust.
that

Roosevelts

the

command

osophy

discipline
permitting

will

ality, this scheme ran

Roosevelt's

Government

the

phil¬
individu¬
throughout
a

time. It

made, of course, for mobocracy in government and that is
what we had under him.
;
has

Truman

sought

bring

discipline back into the Govern¬
ment. He has not had the slight¬
est chance in the world. But nev¬

ertheless he has worried the Left¬

his

attitude.

8.5
9.9

not

4.6

5.7

that

3.7

6.0

43%

119

j. a

Ph.,

•Book values

0.91

17.3
13.1

1.03

4.2

9.2

13.9

0.94

3.7

6.6

13.0

1.00

? 3.8

3.9

9.1

9-96

: vy4.7

6.3

0.96

7 L 4.0

7.9

0.83

11.4

.V*

7.7

jit,

15.7

413/4
735

__i—

7.6

4.6

0.78

•
;

17 stocks.

103%

•

49%

National

19.6

17%

66%
50%

1.28

—15.9

J 7: u

fNet operating earnings, 1945.

of 6/30/46,

with

have

them

Many

quit

enjoy the
they have enjoyed in the
would

they

careers

past.

good in the future,

not

++■'.

Getting down beneath all of the
international implications of the

leader but

NEW JERSEY

frequently not know¬
ing what they mean.
them,

STOCKS
J. S.

Established

Members New York Stock Exchange

120 BROADWAY, NEW YORK 5, N.

Bell

...

18 Clinton St.,

BArclay 7-3500

Telephone:

1-1248-49

Teletype—NY

(L. A. Gibbs, Manager Trading

Rippel & Co.
1891

MArket 3-3430
.

N. Y. Phone—REctor 2-4383

Department)

WHOLESALE MARKETS IN

INCORPORATED

CHICAGO 4

BOSTON 9
10 Post Office

NEW YORK 5: 67 Wall Street '
3-0782

CG-105

»J3S-297,
PRIVATE WIRE

LA-1086

Enterprise 6011

Russ Building
Sutter G567SF 573

Wallace

rep-k

uate

work

down

knew
in

+'■':•+,•

Wallace

that

him

came

and

was

writer's

from

that

editor

by changing his
somewhat different

feeling

copy.

was

this.

didn't

want

1932.

Bryce,
gold-mining

took

postgrad¬

studied

later

under

Keynes,
University.
he was

Harvard

until

Subsequently,

challenging mood. His atti¬

tude

executive

„

economics, first at
Cambridge University in England,
where

Truman,

boards

family, graduated as a mining en¬
gineer at the University of Tor¬
onto

only

directors.

from

comes

errands, his

fairness

1938

with the economic

connected

de¬

partment of the Sun Life Assur¬
Company of Canada, in Mon¬

ance

treal.

Late

1938

having

Bryce,

passed with distinction the civil
this boy's copy because
service examinations, joined the
that boy has an agitating ability
Canadian Department of Finance
and weary Truman didn't want to
as
an
"investigator" and to date
bring about any commotion. The
has continued his connection with
pathetic thing about Truman is
that department, advancing to the
that
he
saw
nothing seriously
wrong with the copy.
And the position of director of its eco¬
change

further

fact

that

the

young

nomic division. Like Mr. Rasmin-

artisans of the copy,

waiting back sky on the Fund, Mr. Bryce while
Commerce
Department,
serving as Canada's executive di¬
they had it so worded

the

thought

inspired by
youngish Left-wing colleagues,

Henry *says
his

salary

rector of the Bank draws no

that he wouldn't.
now,

that he intends to continue to ex¬

himself. If it were not for
the motives of his ventriloquists,
he would be well worth listening
to.
We
can
imagine -no dirtier
press

World

the

from

He continues to be an

expenses.

of the

officer

Bank for

Department of Fi¬

detail

nance,

only

but

Bank,

the

World

part time services. Dur¬

ing his absences from his Bank
pull on Russia than to duties, Bryce's place will be taken
accept. Henry's, "proposition that
by an alternate.
'
v.o+i
Russia be left with Eastern Eu¬
trick

around
to get
or

him.

the
To

younger

men

had

crook.

Men

our

country

great missions.

Our military leaders,

for example,

sent abroad and told to come
a

victory. In the olden

days, Kings and'Queens sent ad¬
venturous

men

away

with

another

bandit

and

Stalin's semi-civilized incom

run

petents back to their border. But
then we are just as sure that
that

Royal Bank of Scotland
Incorporated by Royal Charter 1727
HEAD

OFFICE—Edinburgh

Branches

ventriloquists will insist

Henry's

invoke

the UN

to pro¬

throughout Scotland

LONDON OFFICES:

tect Stalin.

Administration, the

But for the

this
policy, would be politically dis¬

employer of Henry to pursue
astrous

Burlington Gardens, W, I
64 New Bond Street, W. /

it shows Henry's
naiveness to be playing the game
analysis,

final

because he is helping
the
destruction
of

is,

wards

party, and if the
won't

there

£115,681,681

Republicans win

symbol, but of which he
a

ASSETS

TOTAL

to
his

anything left of

crowd of which Henry

that

E. C. /

Charing Cross, S. W. /

then they would

because

Bishopsgate, E. C. 2

8 West Smithfield,

certainly be asked why they went
to war in the first place. In the

is a

Associated Banks:

Williams

thinks he

Deacon's

Bank, Ltd.

Glyn Mills & Co.

leader.

E. A.

this

Truman's approval by hook

have been sent

were

this

under

vive

were

speech to Truman and bluff him
not to approve it. If Walace were
a man loyal to his President, he
would not have put the propo
sition up to the President.
In
stead, he was trying to warrant

back with

PORTLAND, Enterprise 7008

PROVIDENCE, Enterprise 7008

office

his

of younger men
with no responsibility who knew
exactly what the speech would do.
Like a bunch of youngsters who
are urging their father to go down
the street and beat!up this man
because his youngster had said
their dad could lick their dad,
group

miration

SYSTEM CONNECTING: NEW YORK, BOSTON, CHICAGO,
PHILADELPHIA, LOS ANGELES, SAN FRANCISCO

HARTFORD,
^

what he considered to be the ad

CLEVELAND,

LOS ANGELES 14 SAN FRANCISCO 4

La Salle Street 412 W. Sixth Street
Franklin 7535
"
Michigan 2837/

Hubbard 0650

NY 1-2878

Square 231 S.

picture

to the White House and show

GEYEk & CO.
WHITEHALL

Back

York.

were

not to anDrove it. If

BANK and INSURANCE STOCKS

that led up to his go¬

ing over to the White House and
asking Truman to look over the
in
speech which he delivered
New

Newark 2, N. J.

have

should

You

Laird, Bisseli & Meeds

doubtlessly

very

the setting

he is really not a
symbol of that wing.

They put him up to things. They
write the words and he speaks

SECURITIES

INSURANCE

fundamentally

the Left Wing,

and

Mr.

who

thisi's what"was,
rope and that we withdr&wv Be:
at ' stake — the
cause just as sure as you are liv
question of whether they were to
irtg, one of those nations will re¬
be able to continue to run amuck.
Wallace episode,

In spite of all the build-up that
Wallace has had as the leader of

BANK

annals

Bryce

block. In all

ity to control his tribe; others as
the complete individuality of the
family.
':+
Whether it was a lack of ability

10.7

Cuba;

who doesn't want to hurt a young

4.4

;

went

the

few

classic.

3.8

1.00

r e c

Bank who

•

family of individualists
they had ever seen. The divorces,
for
example,
impressed
some
White House guests as evidence
of the Great Man's utter inabil¬
greatest

3.8

0.89

the

executive

ted
d i

men's

Wallace went

the government
in the belief that the picking was

0.76

Garcia

speech.

the

were

ists

18.3

Bank,
he
is
the only elec¬

5.9

15.2

the 3,500 votes:
which Canada

like week in 1945.

.+ V:7T77/+'-v.+
came to the conclusion

Others

6.7

17.9

n s-

Savannah

pared with $6,055,000,000 for the

to show their mocked

noses

4.0

20%

t i o

single country

3.9

543/4 7

resents

0.95

42%

t i t

Elected at

guests, to interrupt with such ob-1
jections as "For Gawd's sake, are fared forth for accomplishment
you going to tell that old story with foreign nations. Henry Wal¬
again?" He would laugh and con¬ lace's mission when he left his
tinue
with
the
story
as
the group a few blocks away from
youngsters
moved
around
the the White House, was to get
o.k.
to
a
sabotaging
table behind his back fingering Truman's

1.12

Trust-

to come back with a
new land. Our ambassadors have

17.8

320

of the BW in—!

similar

story by way of entertaining his I structions

17.2

——

New York Trust

Average

8.2

15.6

of the Bank, is the
such official on either

youngest

situation, with $8,607,000,000 com¬

(Continued from page 1457)

;

39%

398

Trust

Manufacturers

Public

%
10.3

3.5

in 1910, Mr.
Bryce, Canada's execu¬

director

tive

either Fund

45%

•

°.

% 77
4.0

0.92

1,730

Robert B.

Toronto

From Washington
Ahead of the News

48%

2,050

Guaranty Trust—!—

City

■

0.97

24%

National

Irving

Value

& T—

Exchange—

National

leading cities show

First

101

security profits and re¬
coveries, is- 7.9%, almost twice
dividend yield.
Based
on
earning yields, the

ago.

year

Born

Reports for the

operating profits of 1945, ex¬

51%

—

Chemical B.

Continental B.

108 %

ing
Yield

16.3

7
■:

$3,319,000,000 on Sept. 11, a peak
figure, compared with $2,294,000,a

5514

Chase National

Corn

127%

Hanover---..—,

Central

45%

Bankers Trusts—■—

Div.
Yield

■-

15.4

30%

405"

484

York

New

•To Book

Asked Price—

the Bank

Federal Reserve reports.

has

415.5%.

industrials.

Canadian Executive Director of

expand, according to
Member
banks in New York City showed
to

000

net

To their

lows, they now

pared as follows on May 29, 1946:
Banks, +109.2%; Dow Jones In¬

continue

167.30

for bank stocks

...

ratio to book value of .96.

average

tically coincided, being July 6
bank stocks and July 8

5.2%.

appreciated

tractively cheap, with an average
dividend yield of 4.0%
and an

the

the Dow Jones.

high of 212.50 on May 29, bank
stocks declined 8.1%
while in¬
dustrials

rative of

Series)

ROBERT B. BRYCE

the 1932 lows prac¬

Jan.

the

out

for
for
respective
1946 highs, viz., Jan. 14 and May
From the 1942 lows to Jan. 14,
1946, the bank stocks appreciated 29, they have appreciated as fol¬
127.5%
and industrials 117.3 %. lows: Banks, 105.1'%?"industrials,

From

brings

also

that, at current levels, New
York City bank stocks appear at¬

cluding

Bank

1932

*High.

following

different, as the
figures clearly indicate:

201.93

47.9

Jan.

(Twentieth of

the most luc¬
bank's earning assets,

Average earning yield, based on

very

And Worid Bank

below average.

fact

—

"p——

Stocks
1942 low

vided Joy First National and Irving
Trust, but dividend coverage is
Commercial loans,

table

The

Officials of Fond

Commercial,

Corn, Manufacturers and Public.
Highest dividend yields are pro¬

average.

Bank Stocks

—

York Trust

New

and

buys appear to be

most attractive

and minimum
11.4% by U. S. Trust; Manufac¬
19.6% by Guaranty,
turers

Thursday, September 19, 1946

FINANCIAL CHRONICLE

THE COMMERCIAL &

1478

Elbert A.

Carter Dies
Carter, retired

President of the
Bank
was

ance

Vice-

Federal Reserve

Cleveland who recently
with the Aetna Life Insur¬
Company in that city, died
of

heart at¬
according
to the Cleveland advices to the
New York "Times" which added:

NATIONAL BANK
of INDIA, LIMITED
Bankers

"Mr.

ploye
serve

Carter

was

the first em¬

hired by the Federal Re¬
Bank of Cleveland in 1914

shortly after his graduation from
the University of Michigan.
He

served with that Bank
retirement in 1944."

until his

the

Government

Kenya Colony and Uganda

Aug. 28 following a
tack.
His age was 55,
on

Office:

Head

Branches

26, Bishopsgate,
London, E. C.

India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
in

Subscribed Capital

Paid-Up Capital
Reserve
The

Bank

Fund

conducts

banking

and

—£4,000,000
£2,000,000
£2,200,000

every

exchange

description
business

Trusteeships and Executorships
/
also undertaken

[Volume 164

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4526

1479
rmmmmmmmJ*

bor

Haven't You Had
(Continued from first page)
ruptions to production have been
fostered by Federal laws,* some of
which were sponsored by a Sena¬
tor from New York, and by Su¬
preme Court decisions, labor board
decisions, and the machinations of
rival labor leaders.

There

Enough ?

On the other

trade.

hand, let two
employers meet for lunch, with no
more serious topic
of discussion
than the prospects of the Brook¬
lyn Dodgers, and they risk having

'■.:

man.
*

■-

City

merely symptomatic of
what is happening to the whole
country. A full year after the vic¬
tory over Japan finds the country
lagging in production, torn by in¬
dustrial
strife, beset by* rising
prices and a dread of inflation,
plagued
by
wartime
controls
which should have been removed

long ago. The data which purport
to indicate high levels of produc¬
tion

and of national

flect the

course

income re¬
of the inflation

wish to act

ers

limitation is the

monopoly.
as

If the work¬

group, with
chosen representatives to do their

bargaining, vfrell and good. This is
all that collective
bargaining can
to
make certain that no
shady really mean, namely, that a group
deal had been hatched over the is acting
collectively,- through rep¬
honey dew melon and the coffee.
resentatives, rather than singly, in
If we were to be ruthlessly re¬ dealing with prospective employ¬

One

Such

set

one

wonders,

sometimes,

there be any deep and strong de¬
votion to the set of
principles

has

which

characterized

been

the American Way.
Under the
protection of free speech enough
burrowing has been done, and so
skillfully] done with the aid and
support of those who finance such
activities,
as
to
instill
doubt
everywhere. At the same time the
right of free speech has been de¬
nied to employers, so far as con¬
cerns discussion of our iniquitous
labor

rather than substantial progress in

laws.;V-v«

The inter-union struggles to

ers.

organize

particular

dustries

are

shops or in¬
really struggles to
monopolistic advantage

gain the

which the Federal law

confers.

If one employer does not ac¬
cede to the wage terms asked in
the bargaining process, the work¬

should

be free to approach
and, likewise, the em¬
ployer should be equally free to
negotiate with various groups of
workers, or with their represen¬
ers

become

factor

capital

only

agent of the Department of
Justice on hand the next morning

The parlous state of New York

workers.
essence

with

story about a Ger¬
man general, it may have been
Bismarck, who was taken to the
top of one of London's high build¬ alistic, we should be obliged to
ings, towering a full six stories admit that what, we are passing
above the ground, to see the great through here is one of the skir¬
expanse of the city before him. mishes in the great battle between
"God, what a city to sack!" was collectivism and individualism. It
his comment. In a year of peace has been said of England that she
New York City has been sacked always lost all of the battles in
fry one band of vandals after an¬ every war except the last one.
other.
They are not Huns and Individualism has been losing all
Goths and other alien destroyers. of the skirmishes and battles, and
They are bands of our own citi¬ there is no assurance that, like
zens, operating With the sanction England, it will win the last bat¬
of the Federal Government,
Yet tle. For one thing, the opponents
the sacking has been no less com¬ of individualism and human lib¬
plete than it would have been had erty are receiving far more val¬
a
foreign invader landed
his uable moral support, financial aid,
tropps and laid waste to the city. and expert guidance from those
True, the buildings still stand, but who should be fighting on the
other side than any English trait¬
no sensible invader would waste
time
and
energy
in
knocking ors were ever able to supply to
down the buildings if he could the enemies of Britain. The rea¬
take the, citizens, individually and son that the English kept on
collectively, by the throat and fighting until they won the last
compel them to stand and deliver. round was that they were in¬
Our domestic vandals have been spired by deep devotion to home,
able to do this, over and over, country, and their free institu¬
Without firing a shot or losing a tions. £..."
a

deal

must

has

scarce

is,

sums

comparison,

the

This

the story of

economic advance.

and

reversal

century of

It would have

there

had

been

never

labor

union.
the

economically scarce
always exert pressure

can

the

upon

abundant produc¬

labor is exploiting
Moreover, it is ex¬
ploiting the general public, which
arena,
government.

includes all other workers
except
those in the small and
group which

privileged

happens, at the

mo¬

ment, to have

ers

can

secure.

-V:;

this

respect, wages are like
the prices of goods. In the mar¬
ket, both the sellers and the buy¬
ers

free to

are

the

seek

best

shop around. Both
terms

had. Neither selects
uses

blackjack

him

the

terms

that

demanded.

buyer

certainprice,

seller

around until

one

can

party and
force from

one

wants

they

deal

shop

is found who is

prepared to meet them.
When
sales are thus made, they repre¬
sent the best terms for both
buy¬
and

ers

sellers.

The

evil

monopoly is that competitive of¬
ferings are absent. The

^evil of

monopolistic

bargaining is
that the employer is forced, by
law, to deal with the particular
union
which
has
gained
the
monopoly right to put the squeeze
him.

Most insidious of all is the doc¬

The

example, have the entire City of
New York by the throat. In view
dwindling food supplies, this is
literally the case. All other labor
union

with

getting

ence,

suffering,

even

for

they

Hence,

assum¬

ing that the wage demands of the
truck

drivers

are

of food and of

The

met, the

costs

all other goods in

garment workers
and other organized
groups. Then,
when
these
groups
have
won

happened in the past and it may be that the tycoons
the evils of a misbegotten who have been financing the ene¬
of
policy have been demon¬ mies
democracy
may
get
strated to be capable of greater around, before too late, to reading
damage than any that can be at¬ and profiting by the story of
tributed to the tax policy.
Thyssen, and Stinnes, and the
that

has

year,*
labor

the

business

Sphere,
the
American people have been more
concerned about monopoly than
about any other dubious business
In

been

1890 there has
legislation which

Since

practice.

Federal

declares that combinations or con¬

spiracies in restrain of trade are
unlawful. In recent years, a large

others who financed Hitler.
Let us, therefore, come back to
the elemental and fundamental
economics

involved in

our

difficulties of the past year.

plain

dispute that they
product of the fool¬
legislation, and the

beyond

have been

Federal

ish

labor

even

foolish

decisions

proportion of the work of the De¬
partment of Justice has consisted boards. Not so apparent to the
in
compiling the evidence and uninitiated, but equally plain in
Federal courts and administrative

conducting

the

prosecutions

against business Concerns charged
engaging in monopolistic

with

practices.
None

has

r
;
feverish activity
directed against labor

of this

been

organizations. The reason is sim¬
ple. The Supreme Court has held
that such organizations are not
within the scope of the Sherman
Act and its various amendments.!
In other words, labor organiza¬
tions may,

with complete immu-.!

in all manner

and in all sorts of

been based upon a wrong concept

the

conspiracies and j

monopolistic practices to restrain

labor

bargain. There can
be no labor peace until
;we come
to clear and straight thinking on
the fundamentals.
In

approaching

these funda-:
mentals we should begin with the
labor bargain.
If it occurs in a
free market, both the employers
and the

workers must be

free

shop around.

to
penalty,
of coercion, gaining

pity from prosecution or
engage

reality, is the fact that the whole
complex of laws, administrative
rulings, and court decisions, have

ers

wholly

Free

bar¬

is impossible if the work¬

must deal with only one em¬

ployer,

given

employer

neither

the

markets,
nor
the
means of cheap
transportation to
markets, on a scale sufficient to
provide an outlet for all that the
available labor supply could have
produced, had there been enough
capital to create the factories.
Under
were

such

conditions

low, hours

welfare

were

wages

long,

and

arrangements were un¬
It was in such an envi¬

known.

ronment that Karl Marx

developed

his distorted theories of the dev¬

astating nature of capitalistic so¬
ciety. Those who still regard "Das
Kapital" as the economic gospel

strongly

here

and

elsewhere, has been in legalizing
and otherwise
sanctioning, what
strike.

in
is

violence,
tion

connection

the

and

with

intimidation,

property

destruc¬
strikers resort

which the

as might
plain, from
standpoint. It is that
if there are
others, equally com¬
petent, who are ready to take the

be made. The
an

answer

economic

places

and

the

work

the

strikers, at the wages which the
latter, by striking, have
rejected,
then the strikers are
over-valuing

their services and should
have no,
case for forcible
exclusion of
com-

peting
or

workers, before the
the bar of public
opinion.
No one realizes this

fact

elementary

that

often

law

the

wage demands are
of sheer over-valua¬

case

tion of services
better than the
strikers themselves.
Hence all of

thejr

desperate

efforts,

reaching

violence, bloodshed including
murder, and property destruction,
to
enforce

others

picket

will

lines

which

not

mayhem. It is foolish
law; stem¬
ming from the decisions of the

Supreme Court to the effect that'

ally and figuratively) will be in a
strategic position for another dis¬
play of their strength. '

Actually, there is nothing about
driving a truck that involves ex¬
traordinary skill. Any one who
drive

can
can

two-ton

automobile

readily learn to handle
20-ton

could

employ all who wanted to do

mistake,

labor

demands, the highway¬
(the term is used both liter¬

truck.

10-

The

doubt

find

should not these other workers be
free to step into the vacated
jobs?
If the wages demanded
really rep¬
resent a fair value of the service,
the proof would be that

than

one

employer would be ready to
them.' If one employer will
not,
let
the
bargaining
agent
pay

around

move

the
so

done

and

see

elsewhere.

what

can

Equally,

around to

see

if he

can

find per¬

ready to work at his figure?
he cannot, he might as well

settle with his former employees.
Our

have
lot

ing to conspiracy and
monopoly.
And

the

defense

sions be that

of the deci¬
other construction'

of the

statutory language was pos¬
sible, then let it be noted that the
courts

have

had any diffi¬

never

culty in stretching the terms of
the law when
alleged misdeeds by
the employers are in

in the face
of
the entrenched!
labor lobby. All that needs
to be
done is to outlaw

picketing. Let

strike
or
not
as
they
please, but when they do, make*
groups
an

end

picketing is

picketing.

Peaceful
fraudulent concept

for there has

long since ceased tov

peaceful

any

picketing in

large scale strike. Whatever force
may be necessary is justifiable to
terminate this abuse.
But force would not be

Strikers

neces-

causing

should
cause

the
the

can

damage

assessable

merely be¬

strike. When it reaches:'

picketing stage, the nature of :
conspiracy to injure the em-;

ployer and to restrain trade
comes

be-j'

sufficiently evident to make;
adequate case for damages. Iff.
the striking workers go home and
stay there, and if the employer;
an

basic

trouble

retained

and

fantastic

that

perpetuated

nonsense

about

the

made

strikers'

clear

would

and

doubt

demands

the
be

employer

the

first

recognize this fact. Picketing and
the

use

prevent

force

and

those

even

violence

union

mem¬

bers who might be unsympathetic
to the strike from
working, to say

conception of the changes
which have made the book a cari¬

the rights and privileges of work¬
ers in the kind of wage bargain¬

nothing of outsiders, is always a
clear
case
of
conspiracy
and

cature

ing that is appropriate today. That
is, we have carried over theories

should be

have

rather

than

authentic

analysis of present-day conditions.
The
ions
and

labor

experts,

in the

un¬

and in the
universities, by
large still accept the condi¬

tions of the 1840's as if
they were
still applicable in the 1940's. That

is, they still believe in the danger
of labor exploitation unless such
measures

the

Wagner Act, the
Wage and Hour Law, and all of
the lop-sided decisions of the Na¬
tional. Labor Relations Board and
the

Supreme

Court

are

not

up¬

held. The fact is that the condi¬
tions have been exactly reversed
over the past hundred
years. La¬

and doctrines that

were appropri¬
period of labor exploita¬
tion into a period in which labor
is the exploiter, not the exploited.
The root concept is the strike,

ate to

which

defined

cessation of work with

enforcing

collective
a

view to

particular em¬
ployer certain demands (for high¬
er
wages, shorter hours, better
conditions, etc.).
The right to
stop work is essential and should
be

be stopped from
by being made*
financially responsible therefor!
through their union."No damage
sary.

if cannot find others
to
fill
the?
employer wants to pay only
vacated jobs, then the reasonable-;. '
much, why not let him hunt
ness
of

sons

organizations shall be im-5
from the statutes
pertain-'

mune

employers
question.
;;
plenty of
The remedy is
veterans
with
large
simple enough,f
to grasp,
in
though not easy to apply
operating heavy

ac¬

factory,
rather
than
farm
or
handicraft, labor. And there were

great

men

re¬

posts of democracy and individ¬
ualism have not all been captured,

The

smack too

compulsory servitude.

their next

cent stock market decline reveals

.growth and development of free,
private enterprise. In view of all

cross for fear of
city will rise to absorb the
higher wages. This will serve as endangering life and limb. Federal*
law today sanctions all
a
of these
ground for further wage de¬
manifestations of violence with
mands from the

the

discharged
trine that if the private enter¬
ceptance of even the most ele¬
prise system cannot give all of us mentary economic truths is that it experience
tanks or trucks in
a certain disillusionment as to the
their army
continuous abundance, without in¬ takes the human race so
long to
If
such
rate of economic recovery, and a terruption
persons
were
and
by
implication grow up. Virtually all labor lead¬ service.
found and were willing to
reappraisal of the forces which without always doing useful work, ers, and
^take
many professional stu¬
over
the
trucks
at
still stand in the "way of progress then it must give way to another dents of labor
the
wages
economics, are still
toward the prosperity goal.
It system.
Hence the talk about living, mentally, in the economic which the present drivers dis¬
dain, why should they not have
represents a highly realistic view "boom or bust." In this talk there conditions of a century
ago.
At
the opportunity to do so?
of the burdens which are likely to is
the hint that
the
critic
of that
What
time the techniques of the
fall upon investors,
; ;s»
"boom, or. bust" knows how to run, great Industrial Revolution had basis is there * for a * de facto
A familiar .theme has. been the the economy so as to avoid both.. jhst tieen developed, and capital monopoly of a particular labor
burden of taxation. The present No man, or no set of men, can wqs the scarce factor in produc¬ group in an occupation that in¬
volves no special skill?
Stating
writer has been much more con¬ give such assurance. No law can tion. By comparison, there was
the
case
generally^ rather than
cerned about the effects of bad give it, although we have a
plenty of available labor.
Be¬
taxation than about other evils eral law which purports as much, cause of this disparity, labor ex¬ specifically, why should not any
that plague the country, but he is with a sage economic council to ploitation was not only possible, employer be free to fill the jobs
made vacant by a strike
by en¬
but inevitable, even where it was
willing to admit that there can be make reports under it.
Worse evils, even, than taxation,
But the final stage of the revo¬ not deliberately intended. There gaging other workers, providing
he
can
find them?
Also, why
and more serious barriers to the lution is not here yet.
The out¬ were not enough factories, then,

turning out more goods.

would

course

the

have employed, and no doubt ex¬
pect to employ, similar squeeze
tactics in future.

"■

members

city ap¬
plaud and support the strangula¬
tion, despite their own inconveni¬

wage

trouble

concert by
stop-;
ping work together there can be
grave objection, for
any other

terms

litical

tatives.

employ¬

group of1

factors, the present situation in the effort to
prevent others
is that
labor, with the active aid from taking their
places on the
of government, is
exploiting capi¬ terms which they have
rejected,
tal.
Having moved into the po¬ or on such other

the strangle hold.
A few- thousand truck
drivers, for

both the workers and the

tive

another;

Wage terms established
by free and open bargaining of
this sort will represent, at any
given time, the best terms that

act

happens

Since
factor

Further,, when

workers

labor's

position
would have been
improved by it,
if

exist.

and

factor.

occurred,

relatively

production

abundant

the

upon

protected, although when con¬
tracts are made in good faith to
give work for a certain period,
regard for this good faith should

Here

treated

such.

are, more than

a year

after the surrender of

Japan. The
shortages of many kinds of goods
are
still about as great as they
during

were

prices

the

about

are

war,

and

their

high. Among
shortages

the

reasons

and

high prices, high rank must

for

these

be given to the foolish labor laws
and

labor

which

policy,

caesars'have
about
can

our

time

grown

for

public to

kind of meat

little

the

sawdust

great.

great Ameri¬

say—

"Yes, we've had enough. In fact,
we've had

plenty!"

1480

■>>

•j

THE COMMERCIAL & FINANCIAL CHRONICLE

•
; i

• * >

oils

The New Era in Treasury Policy
(Continued from
The former

tries. With the cessation of Lend-

1460)

page

arid does exercise

can

debtedness

Lease

shipments, the outflow of

gold

came

end

and

the

powerful
influence
on
the
money
market
through
open-

monetary gold stock has increased

market

from

changing

operations,

and

serve

margin

re¬

requirements,

through the discount rate and in¬
formal directives

voluntarily

are

that,

exercise

rule,
the

Treasury

can

considerable

followed

member banks. The

postwar low of $20,030,000,000 on Nov. 30, 1945 to $20,267,000,000 on July 31, 1946.

influence

the money market through
refunding policy, the type of
securities it is willing to offer,
by restricting the marketability

The
In

of its

its

obligations, and by shifting

deposits

banks

ury

the

and vice

the

from

Reserve

commercial

banks

In fact, the Treas¬

versa.

exercises prehaps greater in¬
over
the money market

Currency Movement

analyzing the movement of

currency the bulletin remarks:

At the end of 1939, currency in
amounted to $7,598,-

over

its

circulation

143,000, representing an increase
56.2% over the $4,864,824,000

of currency in circulation at
end of December 1929.
This
is

crease

the

the
in¬

remarkable in

view of the fact that employment
and

commodity prices

1939

than

lower

were

There

1929.

fluence

today than the Reserve authori¬

ties whose policies are to a large
extent determined by the needs
of the Treasury and the resolve

tributed to the growth of the vol¬

the

latter

not

terest rates on
In

increase

in¬

discussing the policy of the

Reserve

authorities

the

ume

circulation

currency

con¬

during that period:

bulletin

states:

still

the

During

the

create

the

was

enable

the

sufficent

commercial

policy

balances

reserve

amounts

meet

the

war

authorities

Reserve

banks

not

increased

only

demand

for

but also to acquire ad¬

currency

ditional government securities is¬
sued to finance

expenditures.

war

government

result of this

being hoarded, notwithstand¬
ing the Federal Deposit Insurance
Corporation's guarantee of insured
bank accounts up to $5,000.
(b)

Hoarding of United States
abroad, which assumed
considerable proportions in 1938
and especially during 1939 prior

the

which

$21,788,000,000 at the end of 1941,
$90,613,000,000 at the end of
1945, or an increase of $68.8 bil¬

holiday.

lions.

frOm 25,110 on

the

With

hostilities

and

termination

the

rapid

reduc¬

tion in government expenditures,
the policy of the Reserve authori¬
ties

underwent

considerable

change. Realizing the dangers of

inflation'arising in part out of the

ter

the

United

15,061

reduced

was

general

ment securities by the commercial

banks,

their accounts and

the

Reserve

authorities

have been endeavoring to tighten
the money market and to prevent
the

banks

from
creating addi¬
deposits through the acquisition of more government se¬

tional

curities.

this

effort, the Re¬
serve authorities are being greatly
aided by the Treasury policy of
redeeming, with War Loan De¬
posits, maturing or called obliga¬
tions held primarily by the com¬
mercial

Gold
In

and

;;

During the
currency.

lows: ;

(a)

the

Banking

System

monetary

stock

the banking systems the

(c)

the

huge amount
held

reserves

the

banks prior to 1942. Between Jan.

31,

the Gold Reserve Act

crease

$2,818,807,827

the gold

represented

revaluation

716,500,000

profit, $14,-

constituted

ports, and the balance
"

im¬

net
was

made

of acquired newly mined do¬
mestic gold, scrap gold, rind coin

returned from circulation.

The
ume

expectation
of

would

During

the

war,

United

sisted of Lend-Lease

which
was

shipments for

monetary indebtdeness
incurred " by
the recipient

foreign

governments.

ports into the
ceeded

United

Since

rapidly

ex¬

that the vol¬
in circulation
reduced after

materialize.
to

In part

this was due

the fact that employment was

plentiful, wages and retail prices
higher than
before,
and
black market operations and tax
evasion continued.

creased

demand,

moderate return flow

of currency from
commence.

ilar to

It may be ex¬

however, that after the
of commodities has in¬
sufficiently to meet the

supply

circulation will

return

flow,

sim¬

inflow of gold, creates
as well as reserve bal¬

deposits

exclusive

The

discount

country

and

the

re¬

the money market:

gold

paid
over

abroad

for

the

excess

exports by shipping
and

The

ratio

clues to the state of

discount

reserve

cur¬

averages.

less

minor

the

present

time.

which

one

would'

these three requirements:'

with

company

assets

outside

most of

large

•

its

vul-

nerable cities.
2. A

company which would not
suffer from severe inflation.
;

3. A company

which has a comparatively small labor cost.
'»

merchandising

the

me,

chains,

operating in the Middle:
West, best fulfill/these three con-'
ditions

have

and

in such

considerable

I, personally,
money. 'V-

They

will

future

less

about

from

now

mean

than

on.

steel

from

stocks

industry,

the- task

much-needed

the

completed.

continue

My
the

guess

industry

This

moderate

individuality

of v the

represents

name

international

comes

tors

will sell

Vyy ;;
in. favor

rations
assets

will

seek

occurs.

out

away

Investment

probably

ucts,

This is due to the fact that the in¬ Leaa,

the

won

first

its intention

obscure

phrase

was

inter¬

and

Steel

Federaltion

re¬

exact
■,

Board

determine

the

of nationalization.

extent

The act of

"passive resistance"

the government to make
concession.
It was announced

last

month

the

that

Board

Steel

task

would

the

confined

effecting the reorganization of
industry, instead of its na¬

the

tionalization.

that

and

Steel

Federation

at least during the initial
stages when such collaboration is

absolutely

essential

for

the

suc¬

of the plan. On the other
hand, it could not afford to antag¬
onize the powerful Labor Unions
pressing for immediate steps.
V i
cess

The

formula

chosen

must; be

regarded

as
a
masterpiece
in
compromise. The plan of national¬

has

been

favor

abandoned

discovered

leading steel experts were
prepared to join' the Board. It
looked for a short time as though
the
government has abandoned,
the

for

time

being,

its plan to
industry, for the

the

sake

its speedy

achieving
organization.
The

Left
and

ment

wing
of

re¬

of the- govern¬
.

the

Labor

Party
mobilized, however, all its influ¬
ence to prevent such a retreat. It
was pointed out that, should
the
government postpone legislation
on the industry till after the end

their

they

1947,

British

under

constitu¬

tional practice the
will

measure,

House of Lords
position to veto the

and the House of Com¬
have enough time

will;mot

for overriding

in¬

next general

its veto before the

election in 1950. The

government was pressed to

legislation,

why

certain

measure

really

means

instead

although
the

therefore,

pass

sometime

any case,

reconstruction

was

argued, the

the

would

not

possible

industry

Without

full

ownership.

law

will

And

be- passed

it will merely authorize-to acquire such
any company
when¬

government
in

this is considered necessary.

that the

means

takb

not

government

actual

until

steps

suf¬

ficiently advanced stage to make
the collaboration of the experts
no
longer indispensable. On the
other hand, the Act will be passed
in

good time to rule out the pos¬
sibility of the measure being ef¬
fectively vetoed by the House of
Lords.

;

■

Another

advantage of the

new

formula is that it will enable the

government

carry

out the

re¬

construction scheme without hav¬

ing to acquire control over the
enterprises opposed to some meas¬
ure

that

considered

essential.

The

mere
fact that the govern¬
ment has powers to secure for it¬
self at any moment a 51% partici¬

pation would suffice to induce the
iron

and

steel

out

carry

the

manufacturers

decisions

the

Steel Board.
It

the

indeed

seems

government

that

unlikely

would

make

early use of the new Act once it
is passed next year. Once the Act
is

passed,

control

can

always be

acquired at any time before
next

general

seems

election,

and

probable that the

ment will want to leave

the
it

govern¬

it to the

last minute. It is anxious to avoid
a

next year.

that
"a
large
public
ownership
a 51% participation

reconstruction has reached

condition

several

be¬

and

induced

Greyhound, General
Car, Corn Prod¬
Diamond Match, St, - Joe
and

Iron

izing

need

Tank

Fruit

the

secure

the " experts

unless it abstained from national¬

constitute

Steel

United

;

been

are

explains

collaboration

ever

already busy
seeking out such corporations and
switching their funds accordingly.
stocks

legal
■

May last when the gov¬

Counsellors

Investment counsellors

•

dilemma; It could hot

the
of

This

the country mostly
large cities.
/

from

Minister-of

have their assets well distributed

throughout

the

The government was thus faced

interest

which

companies

had

re¬

unless

to force them.,

Iron

corpo¬

Then

them

government

power

next year,

U. S. cities which
probably
be
destroyed if
War III

consent

ization

are

preted at the time as indicating
a plan to nationalize a
large part
of the industry. As a result, the

in large

World
will

which have most

^'vlC

redundant

arrangements," and would

fuse

valu¬

immediate

the

declared

nationalize

the

plan to secure a con¬
trolling interest in the
capital
stocks of the companies.
It has

which

someone's

situation

securities

bring the industry under "a large
measure
of > public
ownership,"

intense, wise inves¬

enterprises

goodwill
.abroad,
while
bringing them under government

selective market. As

a very

camp

down

entail

enterprises, the

exchange' of proces¬
etc. Many firms would dislike

the

able

ernment,
and
the
Subbty was unable

forms

is that

reorgani¬
has been

whose

bank account.

own

facing

exist

lines

would also prefer to maintain the

securities, or may put the money
into houses, automobiles or other
things. The money, however, will
pocket

the

on *

involved,

the

zation

closing
ses,

would

of various

works,

iron

the

would prefer
postpone nationalization until

after

investments

other

industry
is
nationalized.J. The
other, realizing "the immensity of

those who sell will ultimately re-invest in something else. People

their

into

the Bank of England and the coal

Reconstruction
fusion

fused to collaborate with*the gov¬

Markets Ahead

change

divided

nationalization

and

additional powers being conferred
the government by legislation.

ernment

Nothing in sight suggests there
will be any less idle money to in¬
vest during the next few years
even
though more securities are
being issued. Therefore, the buy¬
ing demand should exceed the
desire to sell; in fact, many of

may

-Ov"* ?. ■>!;"

round in

will hear much

such

camps. One of them is in
favor of the immediate and com¬

control..>•

the

usefulness and

This

rate

beginning of this

Cabinet

plete

increase

ratio" will

scenes

govern¬

two

-,[■

American

earmarking importance

it for the account of foreign coun

authorities to

return flow of

vestment trusts

rate

serve

imports

Reserve

the

Watch

Ratio

exports,

a con¬
movement of

the

yf-

The

li¬

ratio was expected to

reserve

behind the

since

year.

sharp drop or

downward

any

steel enterprise.

going

ment

mons

The Discount Rate and Reserve

War III

help being fol¬

of the "Battle of Steel" which has

ances.

Lend- Lease transactions, this

cannot

This de¬
represents the latest phase

been

were

im¬

States

currency

the cessation of hostilities did not

pected,
States lost about $2,700,000,000 of
gold. This was due primarily to
the fact that a large portion of
the exports from this country con¬

currency,

avoid taxation. ;

1934, and Dec. 31, 1941, the mone¬
tary stock of gold of the United
States increased from $4,034,867,780 to $22,736,114,833. Of this in¬

note-circulation

the past. As for the Dow Theory,
I
believe
this has fulfilled
its

and use
of currency instead of checks
by operators in the black
market and persons desiring

Jan. 30,

Reserve

other

servicemen and
women
away
from
their
homes
and
hence
carrying
more
currency
than
they
would ordinarily.

the

inflation

controlling interest in

cision

cash

rind

much

between members of the

(Continued from page 1457)

;

affect

•

selecting stocks which
Comparatively
small
labor. Hence, the ideal

(Continued from first page)

I Selecting Stocks

at ' high

high prices.

(d) Hoarding of

when the dollar was
following the passage of

1934,

revalued

1. A

cause

I
Wise in-

market.

's ^'Battle of Steel"

the

Millions

excess

A large volume of retail trade

(b)

The inflow of gold Was mainly

responsible for

iron

Selective

bulletin states:

employment

Full
wages.

Those

;

•:

will

effects

nationalization

August

employ.

con¬

already mak-.

selective

are

investment

buying

other

one

labor demands.

fulfill

well

may

this

the

comes,

In circulation increased

rapidly.

be summarized briefly as fol¬

may

How

buy

the

1945 to $27,685,000,000, as compared with $10,640,000,000 at the beginning of
December
1941.
The
principal
reasons
for
this sharp increase
of

end

this..

refer

vestors

studies;

their

upon securities. If World

the volume of

war

ing

again give much considera¬

tion

from circulation set in,-ac¬
companied by a a inflow of gold
or release of gold from earmark,

/ f,

checks.

also

rency

using cur¬

sideration which is

averages, no one can now tell.
These investment counsellors will

possible for the Reserve
authorities to change their present
policy.
Then the discount rate
may again become an effective in¬

25%. Should

vbry rapidly and amounted at the

tracing the effect of the in¬

crease

gold

banks,

rency instead of

are

big

also

par

the reserve ratio is of little
importance, particularly since: the
legal" minimum was loWered to

quired for checking accounts and
have imposed charges for services

Labor

prices in "war-vulnerable"

stocks.

ever,

raised the minimum balances re¬

previously rendered gratuitously.
Many small depositors unable or
unwilling to meet the new re¬
and
charges
closed
quirements

huge volume of deposits created
through the acquisition of govern¬

lower

the

adopt a policy of credit restric¬
tion. At the present time, how¬

have

some

...

There

higher prices in so-called
stocks,
and
much

will it be

cause

Banks

large

uncontrolled

and

Selecting Industries Using Little

■'war-proof"

whenever they are
Only after the
Treasury has completed - its re¬
funding operations and the Fed¬
eral budget
has been balanced

the

wild

inflation.

amount of

in need of funds.

tinuous

June 290, 1929, to
October 2, 1939.

(d)

States

invest¬

Bankseat 1%, since they

abilities.

The number of banks in

lowed

sell certificates to the Reserve

Banks

eral

were

safer

stock

store

city.

much

edness, which yield % of 1%, it is
not likely that they will be bor¬

(lawful money)
holdings of the Federal Reserve
Banks to their deposit and Fed¬

not permitted to reopen af¬
the termination of the bank

commercial banks increased from

West

their clients will create

Reserve

the

power"v,Aw!iich

the desired rate, the
must
stand

from

communities

Central

get ..underway

authorities

amounts

As these investment counsellors

long as the member
banks hold certificates of indebt¬

gold

banks

the

coastal

large

than

department

tificates of indebtedness offered to

rowing

s m a

•

should

ments

ready to absorb virtually all cer¬
them.

South

past, students of the
money market carefully watched
the reserve ratio; i.e., the ratio of

maintain

Reserve

to the outbreak of World War II.

communities

dreds

increase in rates
of
interest paid on short-term
government obligations. In order
to

the

throughout the

strument of credit control.

currency

policy, holdings

securities

ing to permit

gone

chandise distributed among hun¬

will¬

are

have

averages; while stocks
railroads have
lagged.

Surely, the stocks of certain chain
companies with their mer¬

discounts and ad¬
vances
amounting on August 7,
1946, to $257,883,000. Furthermore,
although the Federal deficit has
been
drastically
reduced,
the
Treasury is still confronted with
the task of refunding billions of
dollars of maturing obligations.
Neither the Treasury nor the Fed¬
eral Reserve authorities

Thursday, September 19, 1946

sulphurs

the

■»

store

rel¬

atively small;

can

(a) Some of the currency with¬
by depositors during the
bank crisis of 1932-1933, as shoWn
by the increase in the amount of
notes of large denominations, is
drawn

obligations.

new

number of factors that have

are

the member banks

the Reserve banks is still

and

above

failure which

sult

might be the re¬

of nationalization before

construction

has

reached

ficiently advanced phase.

re¬

suf¬

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

164

1481

Continuing, this Britisher states

Instituted in Geiman

Important

facilities provided by the govern¬

require reichsmarks

Germans. Actually,
there are many things, including
not
only
luxuries,
souvenirs,
works of art, and so forth, but al¬
so
utility articles like household
machines and typewriters, which
Americans like to buy. Because of
used

the

forces

policy in the Soviet
occupation zone. As with his de¬

is apparently
regarded by British authorities
here as adequately protecting the
British army from the financial

economic

where waiters
are
German, a cigarette, being
worth seven or eight marks, is; a
generous tip when the meal itself

drain due to remittances home by

yet,"

Another

German
that

nomenon

1,■

'777'

will

hard

cial decartelization branch consti¬

tuting in effect

miniature justice

not

Indeed not
see

been

The Dearth of Cigarettes

riot enough and American sterling deposits. in
cigarettes in Germany to put the England as redemption funds, it is
country on the tobacco standard believed.; 77:;7-77c7: 77:777?*"
Obviously there are

Germans, at least in the

the

but

would be
glad enough to have ihe cigarette
not only as a standard of value
Western

but

shops where anything is
sale the prices I have seen
extremely ' high, v whether
think of a mark as 40 cents or
but you can always ask what

tep,
the

ping., v. When myescort learned
the
price in cigarettes of the
bracelet he wanted to buy, and
said it was much too high, the
salesman .seemed really. hurt and
he

had

most

meticulously converted from
marks into cigarettes at the going
rate of exchange.
■
v

V These

trivial
temporary phenomena in a
; may

and

seem

war-

yet probably they
are more significant, not only / as
to .the monetary situation here,, to
blasted, land,

the. surfeit, of money and hunger

;

innate

barter

the Germans.

instinct

In the more distant

future this, may come

again

the prewar past we saw

international

among

scale

on an

the

Nazi

barter,, clearing and compensation
agreements so eschewed in Wash¬
ington.',
/'
V, ;••• , I ■;.v.- 77
May Follow British Technique
The
will

new

American

regulations

probably follow the sterling

voucher system which the- British

introduced

gust

into

The

their

zone

British

Au¬

vouchers,

called "British armed forces spe¬
cial
for

vouchers"
use

—

Bafsvs—

are

only by the British forces,

including

military

and

civilian

employees, reporters and the like,
but

not

by German civilians

for

British

not

under

there have been

references

the .German

discussion of the Stuttgart speech
of

Byrnes to what he
the prospect of infla¬

Secretary

said

about

tion here. In the Russian

Teftish

very

waerts"

that drastic

"Vor-

measures

this

that

editorialized

the

zone

newspaper

loses its terror when

realizes

one

in the Soviet

at least prevent

such a devel¬
opment. An editorial in the "Ber¬

zone

liner

Zeitung," also a Russian sec¬
tor
newspaper, points
out that
Byrnes' warning about inflation is
certainly justified. However, de¬
,

clares the paper; "He did not re¬

gard the most decisive point that
different

they coincide with
policy, especially

official:

tic

measures

judge
in

it,

In this

dras¬

Soviet

the

zone

zones.
zone

that
east

And

is,

currency
zone

have

been

brought under firm control,"
The paper then cites the measures
taken in the Soviet zone, pointing
in particular to the freezing of old

accounts, etc.,.stating that
one

in the Soviet

dence

the

zone

stability

and there is almost

there:

ment

the

western

"The
zones

has

every¬

confi¬
money

unemploy¬

conditions
in

this respect

entirely different here. The
banking houses still work and
people can still draw from their
are

old

old bank accounts."
per

states

money
zones

that

what

calls

the

enor¬

decartelization staff OMGUS

dustry's production and distribu¬
tion

problems

cannot

solved

by 19th century methods in Ger¬
many, any more than in Britain.
He
is
prepared to
go
to
any
lengths to decentralize, but what¬

Here the pa¬

the

stream

from the west to the east

is "one of the most important

disturbing factors in the

currency

unjustly tire

"How

then

Laender of

part of
These

industries

something
zones,
■

even

far

all

thinks

are

beyond

Laender,
•

(

Perhaps this is the only point of
difference

between

the

USA, as bi-zonal economic
merger begins. The UK may in its
zone

extend

the

other industries.

coal

policy

In their

zone

coal mines have been seized.

British

zone

to
the

The

of course contains the

major German industrial strength
and the Anglo-American decartel¬

question
"what

defacto

are

handle

and

will

ask

going to do in this

they be broken

they to be sold to those who

since
on

V-E

Day

acquired

black markets?

pect attracts him.

English

the

he'll

socialist

the Nazis. You cannot speak your
mind or you'll get into

prison, but

wealth

Neither pros¬

get work.
have

but

would

but
to*

have

neither

educated

Nazis

nor

rather

people deter¬
their positions for

use

peaceful purposes.

The ownership

is the important thing.
You can
always get good management,
j
According to this man Ameri¬

We Germans

Anglo-Saxons

you

for

goodness, sake

get

work.'"

Allies' Progress

man

industry with the power to
appoint the management. The lat¬

unity party and
'It's much the same as

say:

the future owners of Ger¬

continued;

man on the street in Ber¬
lin what he thinks of communism

tives

friend

"Ask the

here,

During the past

year the Allies
have made much progress in Ger-

the

chaos

and

many.
was

stagnation.

beginning there
complete

almost

You couldn't

river for lack of

cross

bridges, couldn't

mail

a
letter.
Displaced persons
roaming the land looting and
murdering. These problems have

were

up been solved, but no sooner solved
simple than the people take them for
There
are
question; in USA antitrust legis¬ granted.
plenty
of
lation is conceived of as being an other things to preoccupy people.
attack on restrictive
Right now shoes are a terrific
weakening
practices, on rigidities which im¬ problem, said this Briton; the peo¬
pair/national defense. -But here ple on the street seem well -shod

trust-busters

can

their

minds

must

one

make

very

decartelizers are faced but they have been using
up
wardrobe
and
dilemma, to wit is a cartel their
many
no
7economically bad as
most longer come out for lack of foot¬

the

same

with
as

Americans

wear.

Morale is frightful in the

efficient.

British

zone

ica

seem to think, or is it
Can it weaken in Amer¬

and

strengthen

Germany

at
the
same
time?
Are
they
trying
to
strengthen
Germany
by removing a weakening element
or "

impede restoration of a selfsupporting
reconstructed
Ger¬
many by destroying ah element
of strength? Can you have it both
ways, he asks. 77 7. '
'
This

second

Briton's

guess

"What really makes wars,
ments

people?"

are

is-*

instru¬

you

out

when

every

the

German

will

you

create troubles.

The

only chance, this Britisher
continued, is to give power to the
peace-inclined until they become
the

majority,- but

factories to the
so

keep

don't; sell-',the
profiteers and
prosperity and

posals

financial

for

their relation to

tion

deal

the

informant

the

pressed

with

view

reform
cartel

further

that

and

ques¬
ex¬

would

private German

excess

wealth by a simplified version of
the American plan, (unpublished),

namely,,

have the state buy and hand over
to ad hoc bodies ^ municipalities
similar groups. Private share¬
would
be
compensated

holders
when

with government
bonds.
Industry thus would not
be nationalized yet would be so¬
cialized on an appropriate level.
Incidentally the British seem to
a more simple
form of the
American financial plan for Ger¬
many. Activities of the socialized
industries

against

under

the

above

technological

all

create

shall have
sian

has

personal

absurd
no

ar¬

trends

conditions,

defense against Rus¬

influence

Communists

can

Germany.

Importance of German Elections
The Berlin elections in October

interesting to watch. Prob¬

ably the Germans

will feel

that

system of
Germans

home.

occur

tomor¬

move

where
labori¬

the

British

there would be in Berlin wild

panic.

; /: -V

Early Merger Doubted

British apparently

The

anticipate
Russian

not

early

merger of the
with the other zones

zone

Germany.
Considering
the
quite substantial differences in
the USA and UK approach to bi¬
economic and administra¬

zonal

tive

unity,

would

how

much
deeper
cleavages with the

be the

USSR in

merger.

•

The Russians

would

bring the one-party con¬
cept
exemplified by SED, the
Socialist Unity Party of Germany;

'extreme

centralism

feder¬

versus

alism; far-advanced industrial re¬
organization under Soviet owned
trusts; characteristic land reform;
sequestration
contrast

of all
the

Exchanges

securities

reopened

stock

Western

■

blocked bank accounts.

zones;

imag¬

ine give-and-take negotiation with
the

Russians

hard.
come

such matters

about, but doubtless in
way,

some

according

to the above cited views.

Cease
It

Uutimately unification will

quite unexpected

;7;

Fear of USSR

thought

acting

are

much too scared of the USSR. The
German

elections

satisfactory

cannot

them

too

considering

the devices they have resorted to
in their

but

zone

where the SED won,

narrowly and then only with

many

invalid

writer

was

fall

into

ballots,

told that

the

Russia

that

etc.

The

must not

thinking

error

the

in " this

structure

only

world.

static
There

certainly will be dynamic devel¬
opments

though

The

capture Germany

only by capturing the Germans.

will be

built

Should such
row

invader,

government

security,

the

necessary

favor

and

military

want

where there has

zone

Russian

war

them in

\ 7; 7'\7
' ■ 7- 77"' 7- 77:7
Referring to the American pro¬

power.

the

ously

and

feels that something urgent must
be done, if you create small Laend¬
er
and
leave the old classes in
power,,

been

create

absurd

in contrast to Berlin

where the presence of the AngloSaxons heartens the populace. But

inoperable

and sold

to those enriched during the Nazi
regime before V-E Day? If not,
are

each

particular instance?" Who is go¬
ing to buy these industrial giants,
my friend asks the ariti-cartelists,
Shall

political friend."

problem here," I
plied that he would have coopera¬

rangement would be controlled
by the Allies not directly, but
ization
impasse is therefore of
through control of the German
fundamental importance.
Rather
Government, which in turn would
than face bluntly and
broadly the control trade and industrial
pol¬
question of cartels versus free en¬
icies.
But, still paraphrasing my
terprise, this Britisher thinks the
British contact, if we try to goBritish will
seek

the

can

all Germany.

or even

Germany.

with

Now

you

big business
asked. He re¬

progressive capital levy;
and the large industrial assets, to
ever is done should be done joint¬
the extent that they did not al¬
ly for all Europe, let alone hand¬
ready get into state ownership in
ing over the large industrial prop¬
payment of the levy, he would
erties to the small

and

the result in the Soviet

conditions

This Britisher views

way.

often has been greedy and canni¬
balistic but he states the coal in¬

real

zones

than in the other three

experts

now

the long-term technological trend.
admits that private business

in fight¬

plied in the various

burden

Germans.

have been ap¬

measures

His views

merger

who

oppor¬

reward them

now

conditions which

has. He cannot see splitting up ef¬
ficient German trusts in the face of

Regarding monetary conditions^
some

777

interesting

are

Inflation Prospects

in the local press

regrettably

not be mentioned.

decartelization

whether

mous

something consumable and en¬
joyable, but indeed as reflecting respect one has applied
an

may
on

subject with

name

askance

*7;,

■

ing inflationist tendencies.

for

this

still unknown.

are

price in cigarettes is. I tried this
out
today in an antique store
where some friends were shop¬

/that

still

are

discussed

Britisher whose

using AMG notes in Germany, but
whether they plan any changes is

you

Russians

and

in view of the zonal

for

assured

7 French

exchange.

medium of

the

today

zones,

little

mined

classes,

would

profiteers;

this problem, and certainly there
is a wide hiatus between the offi¬

fending their retention.

buy

however,

to eye

eye

the

freedom

The mid¬

all

even

education

upper

people

conspicuous.

has

between

great economic insecurity, and the
Eastern model of no freedom and

industries.

followers

many

ter

Americans here

crossing from zone to zone.
Such; arrangement
will
entail
British dollar deposits in America

choice

whole

the

and

Progress

far

model

one

first

our

not

department antitrust organization.

thus

choose

must

Western

would you solve the

phe¬

prewar

but

are

dle

sion> the exchange rate for mili¬ cial American and British posi¬
tary purposes ( was fixed at 10. tions. Only the I. G. Farbenindustwo or three marks and tipping is
cents per mark with correspond¬ trie has thus far been vested by
not
obligatory.
For a German
ing parity in sterling,, and the the Quadripartite Control Com¬
jeep or army taxi driver the tips
people were forbidden to discrim¬ mission, with a view to its break¬
Americans give in cigarettes may
inate
between
reichsmarks
and up and 'sale to smaller German
be worth !, much more than his
AMG currency.
However, when interests. 7 • /777;7
/77■•77
wages.
At U displaced ■ persons the British
military finance offi¬
There
may
be a policy an¬
camp I watched an UNRRA of¬
cers made no discrimination the
nouncement on decartelization in
ficer hear the pleas and troubles
Americans
did, thus putting a the American zone.
of the pitiful inmates. . Because
Logically any
premium on; AMG notes in Ger¬ such
announcement
at
a
time
the volunteer workers there re-;
man eyes.
when*the British and American
ceive as weekly pay two. packs of
zones
are
being merged should
7 No Currency Black Market
cigarettes- a week and the aged
cover
and infirm no wages, a committee 7
both, but there, seems lit¬
Presently, officers say no black
tle likelihood of Anglo-American
of elders pleaded for a social se¬
market of consequence in foreign
curity payment of cigarettes, not to currencies exists in the British or agreement here on this anytime
soon.
Whether / the
smoke but presumably to trade for
replacement
American zones.
■ ; *
recently of the British negotiators
special foods or other items. In
When the new dollar vouchers by others
of higher rank will
the Frankfurt Zoo, containing sev¬
eral elephants which survived the are introduced, British, American mean: any earlier industrial agree¬
and perhaps other bilateral ar¬ ment I cannot say. At first blush
war and which have been trained
by their attendant, one held out rangements will be made for their it is really strange in a way to
his trunk to me appealingly and interchangeability
at
armyj. fi¬ see the strongest capitalist coun¬
when
at
the
keeper's
hint
I nance/offices here as a matter of try
fighting
against
German
convenience to authorized person
handed him a fag, the beast care¬
trusts, and Socialist Britain de¬
fully passed it to the keeper.

draw

Germans

tunity to do otherwise.

eradicate, it seems, is the cartel
habit. In OMGUS, there is a spe¬

nel

not

lad

costs the American customer only

Hitler, had

concludes

V7.' ;■?; •;Decartelization

Dis¬

they

hope of economic security.
they probably will choose
principle the former, but ultimately, as one
should stand out, he thinks: those German
put it, "Whoever solves
who prospered under Nazis should the stomach
problem for me is
between

knew better.

military marks
introduced with the inva-

were

fulfilled

of, Germans

dreadful holocaust.

fragmented

respects,

the Soviet licensed morning organ.

Allied

When

political

presuppositions important
Germany's recovery have not

been

and others of the profits

in fair grace.

and

this

hard

uniform finance

millions

are

tinctions

Mr.

certain
for

of trading goods with the enemy
high value Germans set on for miltary currency, a problem
cigarettes, German proclivity to which has been very costly to
barter, and the accessibility of Uncle Sam as well and which the
cigarettes to Americans by pur¬ USA has not yet fully checked.
chase from home, since PX cigar¬ Naturally the British personnel
ettes are not supposed to be bar¬ do not like having their remit¬
tered, the majority of Americans tance profits thus cut off or their
here use cigarettes to a greater or local cost of pleasure, billets, etc.,
lesser extent to pay Germans for put entirely on the sterling stand¬
goods and services. Thus at an ard, but they reportedly accept it

restaurant

unity

there

who reaped no benefits from Naziism or war who have been caught
oy

policy for all of Germany is in a
certain sense a propagandists de¬
mand, because in the west, both in

The voucher system

the

afrpy

economic

Byrnes' call for

foreign currencies into Germany.

soldiers

for

mand

bring

allowed

not

are

finance

and

whom ownership of such vouchers
(Continued from first page)
omy.
Theoretically,
military is illegal., Bafsvs are in denom¬
and civilian Americans should be inations of 3d, 6d, 2/6, 5/, 10/, and
pound.
United
Kingdom
able to supply all their needs at one
ment and not

Economy

and

new

factors

even

cannot see them yet.

Meanwhile if the Russians don't

play ball we cannot wait for them
indefinitely.
we can
a

We must do the best

in the Western zones. Even

dual-economy,

Germany
come.

two-currency

possible
,

;

must

THE COMMERCIAL & FINANCIAL CHRONICLE

1482

Democratic Party

• of
nations and of millions of
people, and a policy which has
strengthened
the
communistic
philosophy of the all-powerful
state,
in
many
other
nations
throughout the world. For years

many
;,
r

2. The Issue is Freedom Against

Totalitarian Government

There is

one

great issue between

the

Republican and the Demo¬
Administration, — whether
progress in this country shall be

cratic

have

Dealers

New

the

tried

people that Communism
of liberal democracy.

teach

our

American

kind

and

Henry Wallace and the PAC still
favor that view. Now we find that
concessions made on that theory

based

hereafter, as in the past, on
principles of freedom

justice, or on a constant
growth,
and
concentration
of
power and unrestrained spending,
in a Federal bureaucracy.
Shall
insist

based

that

program

individual

every

freedom

helped to build up the
totalitarian
state the

have only

greatest

world has ever seen, in a

tions of today is to
publican Congress. -

Bungling

Europe and Asia the freedom

(Continued from page 1458)

fair

way

insure their freedom when

the

moral

the

influence

throughout

States

United
the world.
'

dealings

nations, can we again
direction of peace

the

restore

and

and insure

their

justice

equal

with other
move

kkk'.;

policy has seriously handi
capped
the United Nations
in
which lies the only hope of future
Our

Even in setting up the
for that organization, the
forgot the ideals
freedom and justice which are

peace.

plans

to destroy forever

Administration

local freedom of each community

the

to run its

Finns,

think,

and

speak

act,

affairs, on clearly
written law applicable equally to
all and not differently to every
group according to its political
power and the whim of some bu¬
reaucratic regulator? Or shall we
blindly turn over unlimited pow¬
er and money to a paternal exec¬
own

foolish trust that he

utive with

will

our

solve

problems for us,
rather than use it to aggrandize
an
all-powerful central govern-

Poles,
the

the freedom of
Lithuanians, the

the

Rumanians, the Hun¬

many others.
New
Dealism did this country infinite

garians

and

harm

done

has

harm..

even

sacrificing

the world in

the very, freedom to pro¬

abroad

which, particularly in Poland,
this war was begun and fought to
tect

The policy of insist¬
unconditional surrender,
granting of lend-lease without

bitter end.

ing
the

conditions of any kind, the stop¬

;,k- ping and withdrawal of our arm¬
ies so that more territory includ¬
During the recent session of
ing Berlin could be occupied by
Congress that has been the issue
the Russians, the concessions made
underlying every battle. The Tru¬
to induce Russia to enter the far
man
Administration has tried to
Eastern war, all played directly
continue every war power uniminto the hands of Mr. Stalin and
paried, and add arbitrary controls
helped create a situation now al¬
over
labor, farmer, youth and
most insoluble.;
ment?

phase of business and eco¬
The Democratic party
Is split down the middle on this
issue and so in spite of a substan¬
every

nomic life.

the effect of the
Administration's
treatment
of
Such also was

countries which has un¬
probabil¬
government in¬
Senate, we have
been able to block most of the stead of promoting freedom and
advance
toward
a
totalitarian democracy, and tended to throw
state, and make some progress Germany into the Communist or¬
tial

Democratic

the

House

majority both in

enemy

doubtedly added to the

arbitrary

ity

and

which faction of the party Presi¬
dent Truman would favor, but up

the New Deal
idea that all wickedness was con¬
centrated in Fascism, and that
Communism was a little better

to this time he has endorsed every

than

project of the CIO PAC, and has
thereby made the PAC program
the official program of the Demo¬
cratic party—regardless what reg¬
ular Democrats may think or say.

directly into the
Communists.
We
have fooled ourselves in the be¬
lief that by refusing to restore
local freedom in Germany, Aus¬
tria and Japan, we could teach
democratic principles by force, the
same New Deal theory that "Papa
knows best." Why, we can't even
teach our own people that con¬

within the principles of freedom.
For
a
while
it
was
uncertain

The

President

project for
He

has

that

endorsed

federal power.
proposal
thought of for

endorsed

every

has

anyone

every

the spending of more money.
'

The

split

party

the

Democratic

the issue which deter¬

mines eyery domestic, controversy,
makes ^ program futile and in¬

effective jeven
It is

lias

of the radical
united party. It

program
a

and

throughout the country, cul¬
minating in the President's veto

of the

the

OPA bill at the behest

CIO
his

PAC

against the advice
in Congress

leaders

own

who had been New Dealers them¬
selves.

please a faction, to
supposed political issue,
President plunged the whole

make

the

our own

economic

life

the

nation

into

chaos, and brought about over¬
night a 25% increase in the price
of food.
Only delay, confusion

have played

power

ultimately destroy the very
freedom
and the very
welfare
it

which

prpmises to them.

teach democracy by sup¬

cannot

pressing

destroyed whatever influence we
might have had in leading the
Germans away from Russian in¬
fluence into the paths of peace.;;
Furthermore, I doubt if we can

result from

Administration

Has

Republican

Congress

sential because since VE
have witnessed

administration

pointof

?our

Day

vital

history,:

; '

law which

made, after the sacrifice
of three hundred thousand lives,
we stand in danger of losing all
ever

the purposes and

ideals for which
fought, and we find this na¬
in

abroad

much

danger from
before the war. Presi¬

ex
;

post facto
:

only has our policy in Ger¬
been wrong, it has been

fu¬

impossible. We have pur¬
policies which
created only contempt
as
as hatred for America.
:

tile and

sued contradictory
have

course,

After the greatest and most suc¬
cessful war effort that any nation

tion

outlaws

condemnation.

turning
i

es¬

tragic failure of
a

principles

In Japan the insiders in State
Department policy apparently de¬
sired to pursue the same futile

Failed in its Foreign Policy

;

for

justice by trying men for crimes,
many of which were not crimes
when they were committed, con¬
trary to all the principles of our

well
3; The

respect

teach

continued control by a party half
PAC, and the other half with no
program
except obstruction de¬
moralized and discouraged.

can

democracy.1

given countenance to

many

Federal

increase

stant
will

Not

lias

the

hands

the

disaster

and

form of government,

We. have
the vengeful
and impractical Morgenthau plan
caused the picture of confu¬
and futility in Washington while pretending to disown it, and
the

faction, not of
sion

i£.~qvei;e sound.

Deluded

bit.

dent Roosevelt and President Tru¬

but were checked in some
respects by the sound, practical
sense of General Mac Arthur, sup¬
ported by the confidence of Sec¬
retary Patterson and by his own
prestige. Except for him we would
have seen the same fiasco as in
In

South

America

the

same

New Deal imperialism
has destroyed all the good will
built up for us for many years
arbitrary

by the expenditure of huge sums
planning.

and intelligent

Palestine

have

tributed to the tragic confusion by

saying one thing and then doing
something else.

American

all sound

Failed in

Domestic

Has

Policy

The Democratic Administration

has

equplly failed in domestic
policy.
It has failed to restore a
stable economy here at- home on
which permanent progress can be
based.

It has

attempted to

con-

tiue

the

of
changed.;
theory

United Nations is
V..;;
•

the

The Administration has utterly

failed

cut

expenses

and

thus

Republican pressure
possible
a
reduction
of
against a reluctant Administra¬ taxes at the proper time.
The
tion did Congress adhere to the budget for fiscal 1947 will show a
make

Only

International Court of Justice and

large deficit with expenditures of
more than $40 billion, two years

submit our disputes to
the decision of an impartial tri¬ after VE-Day.
Instead of reduc¬
bunal.
Such a willingness on the ing personnel the Administration
part of all nations is the basic has actually increased the number
essential of future peace.
But of employees in" the .permanent
this court and international law agencies outside of the Army and
have been stepchildren to this ad¬ Navy, from VJ-Day until June,
ministration, as law and justice 1946, by 297,261, according to the
were
stepchildren to the New Byrd Committee.
I was inter¬
Deal.
Force and a police force, ested
in
Paul
Porter's
recent
similar to the police force within speech to employees of the OPA
a
nation, have been the keynote, in which he practically promised
forgetting that national and local them a job in some other agency
police are only incidental to the when OPA is abolished next year.
enforcement
of
an
underlying Everyone in Washington knows
to

agree

that

law,

tyranny.

without law is
This whole policy has
force

been no accident.
ism

It is New Deal¬

that
one

New

soon

That

people are too dumb administration.
k
to understand, that an all-wise
;; The concern about inflation is
brain trust must be given poweir
hbisy and vociferous, but entirely
to prescribe policy and a benevo¬
hypocritical.
By failing' to clit
lent executive given power to ad¬
Federal expenses and by encour¬
minister policies according to his
aging a general increase in wages
own prejudices in each individual
and
salaries
regardless
of
in¬
case.
Such a policy in the world
creased productivity and out of
or at home can lead only either
proportion to the increase in the
to tyranny or to anarchy.
Only cost of
living at that time, the
justice and equality under law President
brought about large in¬
can underlie the hope of perma¬
creases
in cost, which even the
nent peace.'- ^
OPA has necessarily recognized
Recently the Administration has in increased prices.
Thus, while
had to realize the failure of the
declaiming against inflation he
secret Rooseveltian program, and has
brought about inflation and
I am afraid too late, taken a firm
precipitated a wave of strikes
position against Russia.
It did so with more to come.
By vetoing
largely
because
of Republican the first OPA bill he opened the
criticism.
Senator Vandertburg is door to further
price increases
primarily
responsible
for
this which cannot possibly be nullified
change and for keeping the new now without driving the com¬

If President

Truman

were

larly

CIO PAC,

the

New Deal

owing its election to the

one

believe

given

November,,.particu-.

Congress

there is every reason to
would return again to

appeasement of Russia, to a

modities concerned into the black

The

market.

Administration has

yielded to every pressure group
powerful
enough
to
influence
politics or produce votes in those
northern cities which must be car¬
ried

Democratic House

elected.

has

is to

followed

the

particular, ex¬
policy in Germany dictated by cept the Turman labor program
PM and the rest of the Communist which proposed a more toalitarian
press in New York and an imper¬ dictatorship
over
labor and in¬
ialist policy wherever it did not dustry that even the PAC had
run

against Russian interests.

long

solely
the

policy

our

freedom

people, and
world

there

American

throughout the

insure

that

freedom,

eign policy.
that

are
still
The whole mat¬

in the

It has added to the danger of
inflation, boom and depression by
distributing American funds lav¬
ishly throughout the world with

dared to propose.

By bi-partisan action a generous
constructive
program
has

been adopted in

veterans.
that

the interest of the

But the Administration

program

has

fused and inefficient.

the lack

and

many other nations.
made available in such

Dollars

huge

abroad

sums

ever

paid

labor

our

tional
of

and

of housing

been

con¬

Because of

the

net

away

limited

our

the

American

unlikely

that

giving

resources,

the

are

result will be the

na¬

expense

taxpayer.

The
policy proposes to admit
foreign products to destroy some
tariff

our

the

industries faced with

own

high costs imposed by
government's
policies.

own

our

short, in the whole domestic field,
as in foreign
policy, we are still
dominated by New Deal theory,
trying to direct the lives and des¬
tiny of our own people and the
entire world through a benevo¬
lent, all-wise, but arbitrary pa¬
ternalism, with reckless disregard
of the cost to the American people
themselves.
A

Republican

sential

Congress
of

because

failure

es¬

in for¬

eign policy, in fiscal policy, in re¬
but,

above

social welfare,

conversion and

because

all,

the Ad¬

ministration's every move is away
from American ideals of liberty
and

justice, and toward the con¬
in Wash¬

centration of all power

ington.
gress

Republican Con¬
real and liberal
through the restoration

Only

can

progress

assure

of freedom and individual oppor¬

tunity.

Republican

5. The

sents

Pre¬

Party

Program of Progress

Within

the

Liberty

and Justice

Principles

During the past year the Re¬
publican program has taken defi¬
nite

shape, following the platform
1944,; and the »declaration*, of

principles of Republican members
of Congress. • The basic philoso¬
phy of that program is not novel.
It

the

this

created

and

freedom

same

justice

equal

law

under
nation

which
and

1776

built it up to the most
most

progressive,
powerful and happiest nation
world today.
It
American idealogy

the

which
has created in this country the
highest standard of living and the
greatest per capita wealth the
same

world has ever known.

Sometimes,

deploring

condition

relative

the

lowest

20% of our population, we forget
the healthy

four-fifths

condition of the other
the opportunities

and

for improvement our

system fur¬
and we forget
that much of the ability and the

nishes

them;

originality
which

the

and
nation

the

energy

look

for

must

is naturally to be found
the four-fifths.
We must
the hardship and pov¬

progress
among

eliminate

erty

and lack
of opportunity
the 20%, but under con¬
in America already ex¬

among

ditions

isting in this country few men or
of outstanding ability or

women

character

fail
in

conditions

and

France

to rise
which

above the
they find

themselves.

Apart from the moral stimula¬
provided
by
freedom
of

tion

thought,

astonishing

that

of
obvious, we
find
so
many
materialists who
now wish
to cast it aside.
But
the truth is that totalitarian phi¬
with

the

American

material

liberty

success

for veterans,
to a $400,000,000 subsidy to speed up the
But the only way to1 production of scarce materials. In losophy has come to dominate .the
of the
entire world,
result under condi¬ spite of the fact that every emer¬ thinking

reason

why the two

parties should not agree on for¬

ignore

CIO PAC in every

governed

interest

the

peace

primary

was

veterans

spirit of the OPA, more anxious
to justify New Deal theories and
prevent
someone
making
the
usual industry profit than really
to produce housing.

New Deal department all the
Dealers dismissed promptly

been that the

policy unweakened.

the

ter has been administered

cut is made in

to international af-f appear in another agency.
There
theory .has always is only one cure, a Republican

applied

fairs.

requested

power

indefinitely and unimpaired
dictatorship
previously
little care for the interests of the
considered necessary for the con¬
American
people.
Through the
duct of the war—the draft, the
Bretton Woods Agreements it has
wage and price controls, the pri¬
made available to foreigners some
ority controls, the power over
labor and industry—instead of re¬ $10 billion which can be spent in
this country; through the Exportturning as rapidly as possible to a
peace basis.
It has sought addi¬ Import Bank and the British loan
another
$7,300,000,000.
Lendtional arbitrary powers in every
Lease and surplus property dis¬
field—in
employment, in labor
provided more loans
to
and industry, in medicine, in re¬ posal
all

ity, regardless what injustice or structive policy to deal with labor
inequality it imposes on. a par¬ relations, with agriculture, with
ticular nation.
When we add the social
security, with; increased
veto power, it tends to create a production.
Washington is a pic¬
rule of the world by the great ture of confusion and indecision,
powers which can only be over¬ interspersed
with demands
for
more
come by the use of our veto power
arbitrary power and more
to insist always on law and jus¬ money to deal with problems that
tice.
I do not favor the veto can only be met by well-thoughtout
constructive policies devel¬
power in a properly constituted
international organization, but it oped by carefully drafted legisla¬
must remain until the underlying tion.

con¬

policy of appeasing Russia, which
has sacrificed throughout Eastern

dam

basis

gency

granted,

philosophy and set up an organi¬
zation based primarily on force search, in agriculture.
It has en¬
and expediency.
Few realize that couraged every move toward a
in'Spite of much lip service to managed economy with a mini¬
principles' of' justice, the Security mum of liberty for individual and
At the same time
Council can do anything which it business effort.
finds essential to peace and secur¬ it has failed to adopt any con¬

Germany.

at Tehran, at Yalta, at Pots¬
?nd at Moscow pursued a

man,

the

Re¬

Administration

4. The

with other nations in such a way
as

elect

without housing.

Only by a complete change to
policy dictated by a desire to deal

it is restored to them,

Thursday, September 19, 1946

reluctantly

agreed

'""

'
,

[Volume 164

often without the thinkers realiz¬

ing that it is destructive of lib¬
erty*
Two wars for democracy
have created more dictatorships
than the world has seen for a 100
Here, in this country, the
tendency is to look to the Federal
Government for the solution of
years,:

problem

particular

and
and money
thought necessary.
Men who
think they" believe in freedom
and object to being regulated by
the government themselves, make
every effort to impose regulation
on others to accomplish some pet
project of their, own*
Thq New
every

give

the

power

Heal took advantage of this blind

enthusiasm

transfer

Federal executive

the

the powers

of
local government, the powers of
Congress and the; powers of the
courts.

While there remains to¬

;

day plenty Of lip service to free¬
dom, there is none of that en¬
thusiastic devotion which created

this nation.

Men

do not realize

that freedom through the ages

has

been the exception among nations
and has only

continuous

been maintained by I
conscious effort.'

and

Progress in every age has been
to freedom of thought,
to
freedom of xqligious belief, to

due

freedom>■ of speech individually
and in the press, to the freedom
of men to choose their own occu¬

pations, develop their
ents

and

build

own

tal¬

those institu¬

tions and business activities which

might

excite the interest or
government. 1 More
progress can come from freedom
never

support

from

than

managed

all

the

economy

munist or New
Even with our

planned and
in the Com¬
handbook.

Deal

example before
them, they can't catch up, much
less lead the way*
The Repub¬
lican party believes in a program
of progress with freedom,
and
not by all powerful government
direction.
U
•••' Y
*

£<'

";.Y 6. Abolish
..

War Controls
New Controls y :'Yy,

and

price and wage control should
be completely abolished and rent
for not to exdeed one
and

control

transferred to
Administration.

year

in g

Second

War

Powers

Act

the
The

should

allowed to

expire. A resolu¬
tion terminating hostilities should

'J.'

jjp

'?( $ :•

?,^T

that the government guarantee a
job to everyone, regardless of a
deficit. which might amount to
thirty or forty billion a year. The
government cannot guarantee a

public spending which

anyone

has

lars,

and

taxes

taxpayer.
Progress; But
Imposing Detail

7. Aid Industrial

the

...

•

the government assumes the per¬

job of fixing wages and
prices which has been the real ob¬
ject of the PAC Bowles campaign
manent

proposed

those

who

not

continue

decrease

policies

the

OPA.

would

production as the OPA
have done in so many

pro¬

part

any

such

tre¬

and local

responsibility for plan¬

ning

and

administration;

party alone

fore

the

standards

can

Truman

do the job. Presi¬

spite of

last

committed

,every

project

„

itself be free. Every district must
have the right to operate its own

schools, and the parents in each
district must have the right to
decide the kind of education their
children shall receive. There must
be no ideologies prescribed by a

Washington bureau subject

as al¬
the influence of minority

ways to

pressure

threatening

groups

re¬

prisals. The first essential of fed¬
eral aid is'that neither Congress
nor

bureau

any

interfere

shall

with the power of the States and
local districts to operate the kind
of educational system

12. A Foreign

they desire.

Policy Based

Freedom and Justice

Our program in the world at
large is based on the same prin¬
ciples of liberty and justice as at
home. We .support <the United Na¬
tions
but
propose
to use our
power to see that its goal of peace
and security is reached by our
insistence on freedom and justice,
rather than by force. We propose
,

to maintain our own freedom and

longer interfere with the in¬
freedom of other nations,

ternal

allied, neutral
their

tempt

enemy [

to rum
long as
beginning of an at¬
build
up
aggressive

own

there

business

not

to threaten the peace
of the world and the power of the
United Nations. We have fought
armament

two

world

because

wars

felt

that world aggression threatened
the ultimate freedom of this na¬
tion. We do not propose that that
same
freedom shall now be lost

home

here

can

and

totali¬
battle

contest those forces

the

world

persistent

devotion to

the

forces

defeated

field.. We

frank,

the

tarianism

and

only by
aggressive

American philos¬

our

ophy.

•

Our

leaders

must

-Y

longer
failure

apologize for America's
adopt the barren philosophies
a bankrupt Europe. They must
proclaim throughout the .World
the principles of liberty and equal
justice as the aggressive means
to

;

mendous burden. The Republican
dent

can
hope to govern itself suc¬
cessfully, But that, education must

sion system
and unemployment
for social welfare. While
of progress and of peace, instead
our system of free enterprise has compensation should be extended
to all employees and the old age
of relying solely on
produced and will always pro¬
the dead
pension system substantially im¬ hand of security and socialistic
duce the highest average standard
proved
and the payments in¬ organization. Let us no
of living, it does not directly pro¬
longer be
creased.
"
ashamed of the principles of the
vide for those who for one reason
:
We wish to abolish poverty and American
or
another cannot earn an ade¬
Republic.
Individual,
quate income fpr decent support. hardship, and it can be; donq liberty and equality of justice are
without impelling. \$hb freedpm the prinicpleb of Christianity. A
It pajay be. thetr own fault, or they
may.,be unable to obtain work at of the working population, flutthe revival of 'the* moral strength of

there¬

should

clearly set forth in the law and

minute
(pretense of checking the not left, to ,the .discretion of sqme
year'' We1" blocked1 'the' Spending of appropriations "which federal bureaucrat. The * total
"Original so-called "Full Employ¬ he recommended and approved, is burden of the program should not

because

run

gram

Controls

Bill"

long

Last

ment

working than those who support
themselves and their families. In

correspondingly

reduced.

work can only be assisted or sup¬
job to everyone unless the gov¬
9. Restore Freedom of Thought ported
ernment is prepared to provide
by the labor of those workr
the job itself; and that means that
ing at or about the same time,
But
the
Republican
party
in the end everyone works for
and the burden on those working
should not only encourage pro¬
the government and works where
must not be such as to discourage
gress in industry, by a restoration
the government tells him to work.
of freedom; but must encourage good workmen or remove the in¬
The idea came directly from the
centive for diligence and ability.
independence
of
thought
and
Soviet Constitution, via the PAC;
These principles negate the Tru¬
speech and of the press. The great
it is completely inconsistent with
government propaganda machine, man federal compulsory sickness
individual liberty and only pos¬
spending fifty millions of dollars insurance plan which would force
sible in a socialistic state as the
a year and employing 25,000 full
every worker to pay a heavy tax
Soviet Constitution clearly states.
and part-time publicity
agents, on his payroll, so that four or five
Furthermore
the
plan of the
should
be
destroyed.
It
has billion dollars would roll into
original bill based on Henry Wal¬ choked the
development of, in¬ Washington and be used by a fed¬
lace's compensatory spending
dependent public opinion. It has eral bureau to pay all the doctors
theory would have forced the gov¬ attacked all
prominent opponents in the United States. It would
ernment into bankruptcy and the
of left-wing philosophy, and en¬ nationalize, federalize and social¬
operation or subsidy Of most of
couraged less responsible fellow- ize the entire field of medicine
American industry and commerce.
travelers to do a more complete now under private or local direc¬
But we cooperated in passing a
job of smearing both individuals tion. It would regulate the health
bill to set up a planning commis¬
and
institutions
like
Congress activities of 95 %. of the people*
sion to recommend specific eco¬
which stand in the way of prog¬ The right approach is suggested
nomic measures to avoid another
by the hospital bill passed at this
ress towards an all-powerful ex¬
depression like that of 1932. This
ecutive. It has aided in building session of Congress with Republi¬
bill was stated by Senator Mur¬
can cooperation giving aid to the
up a left-wing and even Com¬
ray, the original author, to be
munist philosophy in the news¬ States to sponsor the construction
satisfactory to him, but President
of
hospitals
where
they
are
papers and on the radio. Only the
Truman failed for six months to
Republican
party
will
restore needed, under a comprehensive
appoint any commission to; go
freedom to the radio and abolish program developed by the States
ahead with the plan.
themselves
and
including
both
government propaganda.
The government can aid the de¬
public and private expansion. I
Government can and should en¬
have introduced another bill to
velopment and stable operation
courage research and the develop¬
of private industry without con¬
ment of new ideas. But the bill give federal aid to States to assist
trol and detailed regulation, and
them to fill out their present pro¬
which failed of passage at this
it should do so. It can particu¬
of Y providing
medical,
session proposed a vast govern¬ grams
dental and hospital care to those
larly aid smaller operations, and ment
bureau, with a Director sub¬
the opportunity of men to start
unable to pay for it; also to en¬
ject to every kind of political
new production which is the key
courage
voluntary sickness in¬
pressure. In this field as in every
to any constant increase in em¬
surance funds so that those able
other, the government should aid,
to pay for such insurance may be
ployment. The tax laws should but
grants for research should
not interfere with the incentive
able to obtain it and thus spread
be
made
only to non-Federal
and reward which our system has
their
medical
expense - more
institutions by a board of dis¬
always given to men with initia¬
tinguished scientists actuated by a evenly.
tive and genius who are willing
desire
for
knowledge and not : These are only examples of the
to risk their time and money in
power and not subject to political methods we proppse to use. Our
new
business
ventures.
They
influence.
housing programJ should aim to
should be able to count on a
provide decent shelter for those
sound fiscal policy to remove the
10. Social Welfare Should Be unable to pay for such shelter
danger of inflation. Monopoly and
enterprise
;
The
Constant
Care
of provided by private
unfair competition Can and should
and
Government •
only at the
request and
be
prevented without detailed
initiative of the State or
City
■:
control and regulation.
Recognition of the fact that
concerned.V ■': y?f■;- Y ;■ ' Y; Y.:/"• :j
freedom is the key to progress
But no progress can be made if
The contributory old age pen¬
does not weaken a sound

stantial

1483

those unable to work and :needing relief to be better off in not

mentioned to him. Expenses must
be cut to less than 25 billion dol¬

It
cannot
be : carried
be promptly; adopted. Peacetime fields,
conscription should be terminated through^ without detailed control
unless there ;i$u avreal threat • of of-Jail. 4>iisiness' practices as jyeU
as prices. It would be the most
some new war, which God forbid.
all or work whose product is of
The extraordinary powers of the dangerous step toward an • all- sufficient value to others to
pay
powerful state control of individ¬ the
Smith-Connally Act should be al¬
producer adequately. In any
lowed to expire, and replaced by ual and business freedom. The event we believe that a
people as
constructive labor legislation set¬ OPA must be destroyed.
; ^
J wealthy as ours should - prevent
tling up a complete system of
hardship and poverty in such cases
8. Reduce Expenses
mediation and voluntary arbitra¬
by providing a floor under the
tion, based on the strengthening
Government can aid industry necessities of life. We have long
of the collective bargaining pro¬ most
by doing, its own job well. recognized this in principle, in
cess
and of the responsibilities In
particular it can cut govern¬ our local poor relief laws, and in
which are essential to it. We] ment expenses and personnel, and our
local
free
hospitals
and
repudiate the whole doctrine that ] pay its own way out of current medical; care, but the work has
powers suspending liberty, made income. Only thus can we ulti¬ never been well organized, and
necessary by a war, for the pre- ] mately restore stability and avoid has been left largely to the in¬
servation of the nation, can con-] inflation. I am afraid it is too
adequate funds of private charity.
tinue to be justified by so-called late to
stop inflation altogether The depression showed us that
emergencies in peacetime.
I after the Administration's policies state and local funds were in¬
We shall oppose further exten¬ increasing all costs. But the huge adequate
to
provide food and
sion of regulation by the Federal fiscal deficit of the war has of clothing relief. Federal assistance
government except where clearly course"been the underlying cause is required to enable and encour¬
necessary to control recognized of the present high Cost of living, age the States and local govern¬
abuses.
We
shall
oppose
par¬ and by. bringing it to an end we ments to do a comprehensive job;
ticularly any further government can hope at least to check & fur¬ and our program proposes such
entrance into the
operation of ther rise. It should make a suffi¬ assistance in health, housing, and
private industry, and favor the cient cut so that the taxation if necessary, in. ordinary relief.
steady reduction of government necessary to meet expenses is not But that program must not be an
subsidies to producer or consumer. burdensome and discouraging to attempt to regulate the whole
Fair agricultural prices must be those who do the best work. Our field of health, housing and wel¬
maintained but their proper cost present system raises at least 35 fare, nor an attempt to take over
should be passed on to and paid billions. With ten billions state the proper functions of the state.
by the consumer; and not by the and local taxes, this means a tax It is justified for those who are
United States Treasury. If an burden of 30% of national income. improperly or inadequately served
American industry meeting any This must be reduced if we ex¬ by the operation of our economic
substantial part of domestic de¬ pect private enterprise to do the system,
perhaps
20%
of
the
mand is threatened by lower costs job we place upon it, and not people; and should not limit the
abroad, it should be protected by oppress the lower and middle in¬ freedom of choice of the other
come
a tariff and not subsidized by the
groups who bear
a
sub¬ 80%. It should be based on State

Not

^T' r*'

•

t We propose first to abolish the
War controls. By April 1, the OPA
■

' '

THE COMMERCIAL & FINANCIAL CHRONICLE

Numbei 4526

of be too heavy

nor

should it enable

Truman
solve

Administration

would

Christianity is the greatest hope
in.

problem by turning
over to some federal bureau un¬
limited power and funds to direct

of peace and spiritual progress
the world today.
:

the lives of free Americans.

H 13. Conclusion

every

11. Provide

Education

and

Today the people have only
instrument

one

accomplish that
end. That is the Republican party
In the field of education the
—they cannot find it in Demo¬
problem is
somewhat different
cratic leadership, trying to breathe
because universal education '* for
life into the corpse of the New
all income groups has long been
Deal with a PAC pulmotor. They [
recognized in this country as a
Y;

Opportunity

■

Y./Y:

function of government.

systems have been set

■

State tax

to pay

cannot find it in the conservative

faction

the

Democratic

party

discouraged and futile in opposi-r
tion to the party leaders. They
field we find that in some poorer
can find it only in a united Re¬
States even if they tax them¬
publican
party
whose
leaders
selves in proportion more than
represent no faction and take
the wealthier States -their funds
orders from no minority group,
are
inadequate
to
provide
a
who. are inspired solely by a de-^
minimum basic
for

such

education.

But

this

education for the.

children in such States. I believe

that

than

national

the

restore

America

the

of progress so long
interrupted and the ideals so long
distorted, by war, depression and

basic education, on condi¬
the State taxes itself

such
tion

sire

forward path

that in such States federal money
should be
available to provide

New Dealism.

average

and distributes the money to the
school districts
white.

minimum
cannot

black,

basic

have

Wainwright, Luce and

that every child,

get

the

education.

does

Willetts with Gamwell

true freedom unless

Stuyvesant Wainwright, Clar¬
Luce, Jr., will become gen¬
eral partners, and William Pren¬
tice Willetts a limited partner in

there is

and
own

free opportunity for each
child to develop his
character and ability. Perfect

ence

every

equality we cannot hope to give,
we
can
at least give every
child the knowledge from which
he can understand the opportunity

Gamwell

but

that

lies

American

before

under
.

New

the

Y
the' path" to real

system.

Education

him

„

freedom of speech and freedom of

New York

York

Co., 40 Wall Street,
City, members of the
Stock

Exchange,

Sept. 26. All were previously part¬
,

ners

letts

Wainwright, LuCe' & Wil¬

which will

thought. Only an educated people of Sept. 25.

dissolved

THE COMMERCIAL & FINANCIAL CHRONICLE

1484

don't have to generate busi¬
ness. I don't even have to at¬

Tomorrow's

think

Markets

Walter

Whyte

now

range

indi¬

The

180

figure represents resistance
rally, the 170-point resist¬

Penetration

decline.

ance

either

indicative

one

in direction of penetra¬

move

:y;;v:;v\

doesn't hold.

tion.

(Continued from

with

half

page

1458)

Japan merely because she had attacked
the story.
,7V:'

is to tell but

Summing it all up it means
Nor was the course of events in Europe wholly what it
that the 170 point will prob¬
may^appear to the naive eye.
True it is, of course, that
7 *
*
V ;/v..
ably be the more important
of the two to watch, with the Germany declared war on the United States following Pearl
Y Last Tuesday (that's when
Harbor, and when that had occurred there was nothing left
167.30 as the secondary level
for us to do but to accept the fait accompli and
this column gets written —
fight. The
of support.
YYY;7 v>: cold hard fact
Tuesdays and sometimes Mon¬
is, however, that in all save name we had
*
*
*
'<
been at war with Germany for many months
day nights) I said the market
prior to Pearl
On the basis of the decline,
was
showing signs of ap¬
Harbor, and at our own choice. ?■ Now that the war is over,
I hear say that stocks appear;
we are steadfastly refusing to "make the mistake we did
proaching support points. At
levels.
I last time"
the time that was written the cheap at current
by pulling out of Europe.
We are apparently
might point out, however, determined to have a
averages had made the low
say in much that is done or not done
that stocks are never cheap,
for the decline, 167.30. Since
on the continent of
Europe during the next few years.
or for that
matter are •'they1
then they have advanced to
%'"7,.yy if<777-77 J •;.
77 Y77 7Y'7r/7.77'7 : Y 77
ever high.
They are always
about 176. And by the time
worth what they are selling
■777 It goes without saying that if any European or Asiatic
you read this they may be
for, no more and no less. If power were doing any of these
around 180.
things anywhere in our
that
sounds
screwy • think
7.* :p *
hemisphere we should be crying to high heaven and in all
# '77-7Y
about it for a while. If a com¬
probability doing much more than that,
We must never
Approaching 180, however, pany is making money its
forget how these acts of ours must appear not only to our
the indications of trouble ap¬ stock may be cheap at 100. If
former enemies but to our ally, Russia, which obviously
pear present.
Whether this it's losing money the same thinks in the terms of the ancient
imperialism.
This much
trouble will bring about an¬ stock may be dear at 10.
we owe both to ourselves and to the Russians.
We also owe
ther spill is something else.
YY;' " YY: 7
*
* Yh; * ;Y'YYYYY'Y' YY'':'
it to ourselves if not to the remainder of the world to con¬
At this stage of the cycle al¬
If you buy anything now sider with the utmost care and realism the inevitable con¬
most any decline can whip it¬
don't let that outright owner-,
sequences of such policies as these.
self into a frenzy of selling,
ship psychology throw you..
Of course, we have our reasons for all this, which we
feeding mostly on itself.
Pretend
you're buying on have again and again and again explained and
re-explained,
Technically the averages margin and you're not mar¬ but so has Russia reasons for what she is
doing, and (as
have formed a base which ried to the stock.
If it gets
put forward) they sound as high-minded as do ours.
She,
means that some kind of buy¬
under 170 (figure the rela¬
too, must have certain controls and spheres of influence—
ing is now possible with a tionship out for yourself) my and various other
things now demanded—to make herself
fairly close stop. The stops advice is to get out.
secure in a world which for the most
part thinks very little
should be as
close
to
the
More next Thursday.
of her and her doings.
She, too, feels the impulse to pros¬
equivalent of 167 as possible.
—Walter Whyte elyte in the name of her economic and social religion—which
In actual practice, however,
we have no reason to doubt seems to her
fully as worthy
IThe views expressed in this
the 167 level may be too far
and promiseful as ours does to us.
Of course, there is a
article do not necessarily at any
away to mean much. For ex¬
time coincide with those of the good deal of sheer hypocrisy in; some of these* "claims/as
ample if the averages close
"Chronicle." They are presented there is a similar measure either of sham or unrealistic
below 170, or even get down
as those
■
'
of the author only.]
Y thinking in ours.
under that figure during any
Y
Whether or not one is ready to agree with Mr. Wallace
market session, the chances
about our relations with Britain, it must be admitted that a
are that
the 167 figure will
.

market.

for

if it

they can
reading it or com¬
plain to the Editor.;, v
77.,

10-point

and

The financial Situation

the likelihood that it will not

either stop

■By WALTER WHYTE-

cated

point of resistance, the more

sit well with readers

Says—
A

I write what I

tract readers.

widely accepted such

Thursday, September 19, 1946

■

I've just had myself a time
reading about the stock mar¬
ket and why it went down.
The impression I got was that
some thought it had slipped,
an accident you know; others
thought it was pushed. After
wading through all the print¬
ed matter I decided that if

putting their
the market down
on paper were put end to end
(and that includes myself) it
would serve them perfectly
all the writers

thoughts

right.
It's strange

how much an¬

ger has been generated by the
decline. Everybody and every¬

thing is blamed. The Admin¬
istration is taken to the wood¬
majority

well deserved birch¬

Federal

The

ing.

the

what

for

shed

feel is

Reserve

Board is

given a left-handed
swipe for not doing something
about margins.
Strikers get
their lumps. Russia gets her
Public
good many things we are now doing are essential for our
be purely academic. The hardeye poked out. Yes sir, every¬
;Y(Continued from page 1459)
defense only if defense of the British Empire is essential to
boiled trader who has to be to earn about 6% on a rate base
body gets blamed but our¬
our defense.
There can be little doubt that it is precisely
pro
selves. It's always easier to right six times out of ten sel¬ of $221,700,000. Based on
the belief that a strong British Empire-is essential to us
pre¬
dom waits for any widely ac¬ forma fixed ' charges and
blame the next guy for your
ferred dividends, this would place
which leads the powers that be in Washington to pursue
shortcomings. Back in 1929- cepted support point to dem¬ a-'"ceiling" of $2.68 on the earn¬
itself.
Somewhere ings for common, stock. In the certain courses that they have laid out for themselves.
32 it was the Hoover Admin¬ onstrate
Here it is that Mr. Wallace appears naive.
There can be no
istration that got blamed for along the line, before; that year ended June 30, $2.03 was
earned on a pro forma basis so
doubt that Russia has ambitions which not only run counter
figure is reached, he has made that the
everything. Then, being hu¬
company does not appear
to the interests of the British Empire, but which would all
up his mind about its vul¬ to face any general readjustment
man, we always look for the
but incapacitate it were they realized.
The question is,
nerability, It might be of in¬ in rates*- -YY
fall
;;^
guy.
And it's always
terest to point out that the
The company's stock was form* therefore, not whether we should align ourselves with Brit¬
somebody else, not ourselves.
„

Utility Securities

•

7.7.

I'm not

erly entirely owned by National
Power
&
Light and the latter

going to waste any
space
looking

for

larrup.
where.

We'll

straw

man

have

still

market to contend with.

the

'./

Stock

Exchange

Curb

Exchange

York

New

York

New
■

Members

Y7Yv7'Yv'r;-'

the

time I could take every one

York

New

Exchange,

Commodity
Chicago

how silly they are. But
somebody else do it. I

New

Board

Cotton

Orleans
And

other

Y. Cotton

CHICAGO

Trade

Exchange

PITTSBURGH

SWITZERLAND

Executed

Orders

LAMBORN & CO.
99 WALL STREET

Schwabacher & Co.
i

York

Stock

York

Curb

Exchange

Chicago

Board

7-4150

5, N. Y.

■

(Associate)
Trade

New York 5, N. Y.

14 Wall Street

COrtlandt

NEW YORK

Exchange

New

Electric

Teletype NY 1-928

company

San

holdings to help retire its

Monterey

—

—Santa

Oakland

—

Sacramento

of $1.20.
based

4-2727

be about
erage

pro

not

possibly without realizing it—in 1914, and which President
Roosevelt carried

forward with evident

satisfaction.-

Whether

forma figures, will

10Vz which is below

av¬

for companies of this cali¬

though

about

Must

line

with

issues.

Underwrite Britain?

777^7^ 777.7Y7'

not it is

billions of dollars and hundreds

ing
was

appreciable danger at all.

of thousands of lives—do¬

when the balance of power elsewhere in the world
such that we were really in ho great danger, indeed in

out of consideration

there is

Leaving the United States
"balance of power" in the

If some day we must come into collision with
Russia—outside^ Great Britain we and they are the only
Far well, Chapman to Admit first class powers left on the globe—then the British Em¬
But must we collide with
CHICAGO, ILL.—Farwell, Chap¬ pire would be an invaluable ally.
man
& Co., 208 South La Salle
Russia regardless, and what is the price of underwriting the
Street, members of the New York British Empire?
We leave these questions for the time be¬
Stock
Exchange,
will
admit
ing at least to the reader's own judgment.
Thomas G. Cassady to partnership
Oct. 1.

With Hentz in Chicago
ILL.

with

has

Hentz

Fresno

It is whether

inactive while the Russians

perhaps irreparable, damage to the British Em¬
What we are actually doing appears to be a con¬
tinuation of the defense of that Empire which we began—

own

The price-earnings ratio,

Greenberg
DIgby

really essential in the existing cir¬
Pennsylvania Power & Light cumstances for us to preserve that Empire is not here under
has been selling recently around
consideration.
Admittedly it is a difficult question.
We
21, yielding 5.7% based on the have often in the past felt that we have'made ourselves
recently increased dividend rate foolish
by rushing to the side of Britain at the cost of many

Barbara

that to the Russians.

pire.

Share.

SUGAR
Exports—Imports—Futures

afford to remain idle

do serious,

plans to use

—

to Principal Offices

Wires

Francisco

re¬

can

preferred stock issues, ...7.

CHICAGO,
■private

and

Bond

other "unseasoned."

Exchanges

Members

distributed its

now

The latter

ber,

Securities

Pacific Coast

tional has

maining holdings, of which about
46.5% went to the parent com¬

its

;{'■■■'

Exchange Bldg.

DETROIT

GENEVA,

Inc.

Exchanges i: -:)

NEW YORK 4, N.

Pacific Coast

iv;;.

months ago

purchase additional stock. Na¬

pany,

Exchange

Cotton

the above "excuses" and show
you
let

stockholders ; several

H. Hentz & Co.

If I

and

inclination

1856-

It won't get us any¬

had

Established

■

around

issued rights to its own

company
'

white

ain to do this

La Salle Street.

become
&

Co.,

Marvin

affiliated
120 South

world

today.

Obviously, the future relations between these two most
powerful nations on the globe will depend a great deal upon
both of them.
At the moment Russia appears bent upon
contempt for all rules of courtesy in international relations,
and so far as can be determined/upon a good deal more.
It
is

fact, however, that no one is able to be really sure pre¬

cisely what Russia expects to get or will be

satisfied with in

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

Volume 164

»this international maelstrom in which all of us are

strug¬

gling today. The United States, as has all too often hap¬
pened in the past, appears to be amateurishly playing the
role of'moralist.
Britain, meanwhile, is busily engaged—
| notwithstanding much that Labor has; had in. th$ past to
say about "liberating" parts of the Empire—in her usual
shrewd role of looking after her far-flung possessions and

commonwealths.

'
folly to pretend that the selection of a
proper role for the United States in this situation which we
; have largely brought down upon ourselves is easy.' It is
;

It would

to the Western Allies at

back

forth

and

1939,

?48$

Locarno; and in this manner played both ends
non-aggression pact with Hitler in

World Trade

Stalin's

until

■

Plans

The Present

develop and
enhance the leading place which

Phoney Peace

New York holds in international

trying to anticipate the future, let us do the job of orienting
ourselves as to where the world actually is now. Some of the recent
press dispatch headlines, taken at random, should be helpful:
Rome,

Sept.

11—"Albania

Greek Border."

Reported

Reinforcing

trade
at

;

for that

essential that we keep close
considering the alternatives that are open to us.
all the

reason

to earth in

Lake Success, N. Y. Aug. 24—"Ukraine Tells UN Greece Plots
V
:•■■■*;■:■
v: • "
,

New York City, Sept. 6—"AFL
Sanctions Against Yugoslavia."

Longshoremen Invoke Economic

Thomas

E. Dewey

Governor
July

6th

last.

Aldrich,

Chair¬
man
of the Board of Directors,
London, Aug, 26—"British Deny Base in Turkey. Call Russian
the announcement indicates, stated
Newspaper Reports Rrpvocative Fabrications."

Observations

Washington,

of the World Trade Cor*

appointed

were

Winthrop

Moscow, Aug. 25—"Pravda Assails U. S. for Rift with Tito."

were given further impetus
meeting of the board of di¬

rectors

War."

poration held at The University
Club on Sept. 10 it was announced
on
Sept 11. The directors of the
corporation, which was created
by act of the State Legislature,

Near

Army

Moscow, Aug. 31—"U. S. Aim Aggression, Soviet Paper Insists."
a

Corp.

further

(Continued from page 1457)

that there had been

Aug.

30—"Soviet

Has

Soldiers

5,000,000

Under

Arms; 2,000,000 Abroad."

broad dis¬

cussion of the basic problems con¬

nected with world trade with
anti-UN.concept), with precise duplication of the isolationists' antiLondon, Aug. 19—"Russia Reports British Moving Near Iran particular reference to the City
imperialist, anti-British, and mind-our-own business arguments. so Line. Says Occupation of Towns Close to Oil at Abadan Creates and State of New York. Various
; excoriated when they were advanced by the Lindberghs and a War Danger,"
suggestions, including a proposal
Wheelers.
:
4.■'4r -M-/ 4'">■
v" j4■/;
Paris, Aug. 15—"Western Allies Fight Soviet on Danube Trade; for the erection of a series of
,

Control.

[

The Psychological Block in Forecasting War

prelude t6 the answer, I must point
out that habitually the public's answer is psychologically weighted
toward the negative. Thus, despite Hitler's unequivocal talk, writ-*
:ings; and action all through 1937, '1938, and 1939, the majority of the
•public just doggedly; refused to believe that his behavior meant war;
; The" reasons
for misjudging the situation were; wishful thinking;
.blind confidence that humanity "just couldn't slaughter itself again";
and, particularly: by Europeans, mis judgment of the forest because of
being too close to the trees! Thus we had the paradox in the summer
of 1939 that so many of the keenest experts completely misjudged the
situation. I was in England and on the European Continent during the
crucial days in 1939 that later proved to be the; prewar prologue.
'Even through most of August extending up.to the actual moment on
that beautiful Friday Sept. 1, when Hitler crossed into Poland, the
experts—including the leading journalists—in London, Paris, and
: Geneva
(at the seat of the League) completely misjudged Ahe implications of the political and military situations^ and were certain: of
i "no war."
V.44; 4SH44;:.s';.444'4,44
"44';.y44V444
.' Are we going to war?

Bars

Byrnes

Power."

4 Stockholm, Aug.

Washington, Aug. 9

•

Disregarding Aggressor Intentions

Irrespective of the exact reasons for the bad forecasting,, the
disregarding, in both the pre-1939 and the present situations, of
the. aggressor's
clearly
expressed
intentions, is striking. Both
over
the long
and' short-terms Mr, Stalin has left no doubts.
In!his own book, "Problems of Leninism," he said: "It is inconceiv¬
able" that the Soviet Republic should continue to exist for a long

period side by side with imperialist states—ultimately one or the
other must conquer," And in his published works, as well as bulletins
translated into English and; issued by the Russian
,

Embassy in Washington right up until this year; \
there have been statements of policy like the fol¬

But

let

York, as a background to the re¬
port which the World Trade Cor*
poration Enabling Act requires
that the Board of Directors make

specifically consider just three crucial situa¬

tions speeding us to a definite showdown with the Soviet—any one
of which is incendiary enough to start up a conflagration.
4

The most important of these, in the writer's

opinion/ is repre¬
Trieste. Even hitherto the im¬
plications surrounding the future of Trieste have been bleak enough
—representing another Danzig-like long-term international hot¬
bed, and now the principal storm-center, of the struggling East-West
blocs. As a separate territory, it is to have a special constitution of
its own, which Russia, which has been forced to recede from its de¬
mand for outright annexation to Yugoslavia, wants to turn into an

to the

& Lord. Hermann

sented in the controversy regarding

control

New

Hungary,

Southern

Germany,

her

and, spheres, of influence, in o?der to favor selfish
nore the interests of other peace-loving nations."

ner

international

the

Montreux

in the law firm of

Bank,
the

tive

Vicepart¬

Lord, Day

G. Place, Vice
Chase

National

named Treasurer of
corporation and administra¬
was

assistant

Orrin G. Judd

the

was

Chairman.

named Secre¬

tary and Irvin L, Dyer, Assistant
Treasurer, Mr.
the

nounced
law

Aldrich

also

an¬

appointment of the

firm of Judd

Gurfein

counsel to the corporation. Orrin
G! Judd was until recently Solici¬
tor General of the State of New

York, and retired in May to re¬
sume private practice
of law in
partnership with CoL Murray I.
Gurfein.

France May Sell

prestige, is insisting on making drastic revisions

American dollars

Paris advices Aug. 30 appearing
in the New York "Journal Ameri¬

forecast at Potsdam. At

Can

can—because of

Russia's relative vulnerability

said:
give will, make its determined non-appeasing stand;

any

rate,

blop

third

in that sector—and ;

was

indicated in

American Government represen¬

locus of potential trouble lies in the Polish-German
tatives as a preliminary move to
over a year been moved en ultimate mobilization of French

privilege, .that they will not accept any limit whatever on their

forking world organization are; entirely meaningless.

extent

lies

with

holdings of American issues. Ac¬
tual mobilization however,; will
place until the need for
additional dollars is. clearly dem¬

4..-..

that

not take

War

World

after further

onstrated and

sultation

with

Administration

the
and

con¬

American
Stock
Ex¬

change authorities.
"Direct sale by the French Gov¬
ernment
of* American
security

its

nationals would

differ from the

procedure being

holdings

ourselves—

though not along the obvious,.;
superficial course. Let us re*
member

The Fight for Germany

"The step already has been dis¬
cussed informally by French and

interests and ig¬ situation, wherein Germans have, for

national sovereignty; without which all the mechanics simulating a

followed by France in connection
with
employment
of; French-

owned British securities.

might have been prevented by
decisive: counteraction at the;
Rhineland and at subsequent..
Hitlerian
aggressions.
Hence,

all Europe—has barely begun. The
speeches of M. Molotov on July 10 and Mr. Byrnes oris Sept. 6—
ostensibly-made to .the Germans; but really to each other—show the
explosive natuie-of the competitive aims there. For the victorious
of

sale is not inade, but instead the

let

And additionally her fight-, for the control of .Germany—mean¬

French

us;

realize

self-styled
ers"—under

oth^r for the sup¬
port of the" supposedly, conquered Germans. And the indications
Big Ppwers are obviously competing with each,
toward a renewal of war are most

Convention,

ing the fight for control

board,

President of The

and

masse out of the area which Poland
has claimed—sanctified
only
plain fact is that to date the Soviet , Union has embarked
by a plebiscite, which must surely be regarded as phoney.
bp- a. vast process of expansion,; which is effectively bringing into
the sphere of Soviet control most of Europe, Asia and the Middle
East. Looking at the picture broadly: not only has she annexed
Hannegan, Wallace and the Real War Mongers
270*000 square miles of territory as war booty, but she is feverishly
In conclusion: we ask whether from our untenable present state
working to communize all other territory in sight. As far as dreams
of an operative World Organization are concerned: the Russians, of "phoney peace," we are moving to a real peace or to war. WC
know
we
cannot stand
still
at Yalta, San, Francisco, London,- Paris, Hunter, and now at Lake
midst' the. present dynamic;.
Success, under the aegis of Messrs. Stalin, Molotov and Gromyko,
forces. The choice to a major have, again and again made it crystal clear; by employment of the

;

the

Chairman. Mr. Brownell is

The

count- and irrespective of the merits of the Straits question, it is felt by
can? of that date, in which it was
this goes on, it will the best-informed observers that' it is there that the United
States further stated:

Jan.

;
That holdings of American se¬
second, and possibly more immediate, threat of conflict, is
curities by French, nationals may
contained in the Dardanelles situation. Russia, whose! position re¬ be
sold by the, government to pro¬
specting the Straits, has! traditionally varied in. consonance with vide
an
additional
source
of

V. Molotov

the League of Nations did, in another, World War."
precise words * bedisregarded? And self-pityingly, he
"We see attempts to renounce ' the right of veto. This would
a .'free
hand to those who seek to form an, AnglOrAmerican

before

The

■

member

for the latter

and

Mr. Aldrich announced the elec¬
tion of; Herbert Brownell, Jr., a

a coup

Czechoslovakia,

Legislature of the State of

York

1947."

country, with continue
de force. The Western nations, on" the
other hand, want a governor appointed by the UN's Security Council
with very broad executive powers, with order to be maintained
by a United Nations international police force.. But the trouble with
the latter proposal is that .there is no such effective military force
in existence now, or in prospect. And under Russia's apparent tech¬
nique, she will be turning the so-called international regime into a
mere cover for annexation by Yugoslavia. Even this decisive step
might bring some temporary pacification to the district, but it Would
leave a "sore spot" permanently nettling Italy and the other West¬
ern
Powers. Meanwhile Venezia Giulia—as
the natural port of
ing opportunities for

problems

of promoting world trade in New

these

veto

solution to the

proper

Three Crucial Situations

against peace-loving

tries with the aid of an aggressor/' said he. "If

end

-"Chinese Reds Declare War."

pation authorities enforcing the agreed-upon boundary; and also
,iL they do not get thq entire city of Gorizia, twenty-five miles north
pf; Trieste,
/
4?44v44:4:4: 'V 4,:4

directed ; against Russia. "We now observe

attempts to form another bloc directed

"Tentative plans were made at

the meeting to survey the many
factors
involved
in
finding a

draw from, the whole tentative; agreement if the territory is not
genuinely internationalized. And, on the o.ther hand, the pro-Yugo¬
slav ; Communists in;;Venezia Giulia say they, will defy Allied occur

s'peeches,; including-his- well4monitored radio
blast of last February; when he. virtually declared ^ •
war on the -western capitalistic ,world, could,be,
endlessly given right-Tip "to the present moment, "
showing an exact replica of the Hitler pattern.;
Irf line With the latter's technique of calling the
nations standing in his path ."aggressors," is M.*
Molotov's speech in Paris made ; as late as last'.
Saturday. For he wrarned his ?Western Allies"
against attempts at forming blocs, that omitted the
were

ther state:

gary, and Italy—is already boiling over with trouble,. For the Brit¬
ish, who have; moved their General Headquarters to Padua, 250
nearer to the troubled region, are now. threatening, to with¬

in's

Seizing Aids of U. S,

miles

Union

Another

wanted by Tito and Stalin to put the final pincers on Austria, Hun

means

Soviet

"Swedes Use Radar in Fight
"Romanian Action in

Nanking, China, Aug. 18

♦

Austria,

"The. scientific concept, dictatorship,
nothing' mor& or less than power which
directly, rests on violence, which is not limited by
any law's or restricted by any absolute rules.'. . !.i ■'
Dictatorship means unlimited; power, resting on
Violence and not on law." Quotations from Stal-/
lowing:

•

large buildings to house a sample
.-4 fair, were considered, he sajd; Thq
advices regarding the meeting fur¬
Missiles."

intrument of decisive

•

Encirclement

Is Protested."

•

German-Type
'

that

now.

"soft-stick
the

new

the

appeas-

leader¬

ship of Secretary Wallace and
Democratic National Chairman

ominous. As Mr.. Byrnes stated

"Requisition
already

has

Government

securities
British

begun.

assets

Government

such

assets

Immediate

turns
over

subject

the

ultimate instructions for sale,

Hannegan until Election Day"French holdings
of
British
are the real warmongers, Se¬
Henry A. Wallace
securities are roughly estimated
curing their affirmative parti¬
West in a military struggle." And tragically, this sets a pattern fol¬
Those of
cipation in a nationally united arid strong front against foreign ag¬ at 100,000,000 pounds.
lowing the process between World Wars I and II. First, Germany, gressors should be the first
job facing those who want to perpetu¬ American securities are stated to
made- peace with outlawed Russia, at Rapallo in 1922; then turned ate our sacred democracy, *4 t
be much less."
4
.
.
.

bis fear: "A divided Germany will be used by either

Russia

.or

the

Robert C. Hannegan.

i486

THE COMMERCIAL & FINANCIAL CHRONICLE

Russia: Wallace
positive and exciting. Far everi more important to invest $4
(Continued from first page)
delivered in New York later that too often, hatred and fear, intol¬ billion in the industrialization of
erance
and deceit, have had the undeveloped
areas
in
the
soday. The question was answered
called backward nations, there¬
extemporaneously and my answer upper hand over love and con¬
been

did

not

convey the thought
intended it to convey.

"It

joy.
Far too
often, the law of nations has been
the law of the jungle; and the
constructive spiritual forces of the

that

intention to express
the thought that I approved the
right of the Secretary of Com-1
was

merce

did
I

to; deliver

intend

not

the

speech.

indicate

approved the speech

tive forces of

"There

has

There

will

significant
change in
policy
without
discussion

fast

times

and

that

another

United

much

atom bomb—or

circumstances
from

occurring at the
otherwise—he departed

his

last

war.

this

assurance

agent

■

destruction will work best for
will

the

many

up.,

lie who trusts in the atom bomb

ets

rally

therefore

Secretary Wal¬
lace's address, showing in brack¬
how—because

would

war

the

mis¬

invented the atom bomb

■r—and

and

States

rest

cannot

Make

sound.

the

hurt

among the President,
Secretary of State and Con¬
gressional leaders."
\

where

this

say

something

who

But we must realize that modern

for

namby-pamby

didates chosen by the Democratic

inventions have

Party and the American, Labor
Party in New York, James Mead
long has been one of the ablest

world—and

public

pacifism.

modern war can cost us

Washington—
a
constant, faithful and intelligent
proponent of the New Deal of

Franklin

Roosevelt.

will miss him

—

but

The

Senate

Albany needs

him.

the
to

most

pay a

minds of

Smith and Roosevelt and Lehman.

The

Herbert

Lehman

knows

full

well the problems and the oppor¬
tunities facing the State of New

York, the United States, and the
United Nations. His great heart
and

great mind

will

ingly useful when he is

November

will

mean

long

business. They say it doesn't

anything when the Demo¬
cratic Party, the Liberal Party.
the
American
Labor
Party—-all
three—are
behind
Jim
Mead.
you're blowing off steam
here tonight, and that
you won't
say

get out to vote

on November 5th.
With their cold, steely eyes, and

their Iqng ^cmhrolls, they day, this
is
just), amotion, and-, that, you
won't work.

;
'
We'll find out on November 5th
whether
you
really
did mean
.

business, whether
get out to vote.

for Jim Mead

really did

you

Because the votes
there.

are

"Yes, the Senate will miss Jim
Mead.

He voted for the New Deal

Roosevelt legislation.

But Albany
needs him to carry on the tradi¬
tion of Smith, and Roosevelt and

Lehman'.
Those

■-/•

steely-eyed gamblers look

with

somewhat
more
favor on
Herbert Lehman, but they don't
give him much better than an
even

chance.

Yes,

man; with his grasp on New York

problems, his grasp
States
problems,
his

United

grasp

United Nations problems. We need
his great heart; we need his
great
mind. We need him as a member
of the United States Senate.
Above all, we need the

both

men,
so

because

New

York

important for the

na¬

tion in 1948; and a,
victory for
Mead and Lehman
may make all

the^ difference between
which,
mean
on

the

one

world

hand, would

imperialism and

the

other

hand

war, and
would mean

and productivity for the
Common Man.]
Tonight, above everything else,
peace

want to

l*ow to get

talk

about peace—and

peace.

Never have the

common
people of all lands so
longed for peace. And yet, never

time

hearts

the
V

low

creditor demands
at thessame time,
adopts policies which make it im¬
possible for the debtors to pay in
goods—the first result is the in¬
great

payment,

and

tensification

large

depression

over

of the world; and the

areas

final

result

triumph of
demagogues who speak only the
language of violence and hate.
Republican

for

peace

and

Policies

Economic

Lead to War

Individual

Republicans

may

hold

enlightened views—but the
Republican Party as a whole is
irrevocably committed to tariff
and trade policies which can only
world-wide

mean

ruthless

States

people all
fear that

headed

warfare

and

And if the Repub¬

war.

were

United

depression,

economic

eventual

licans

power

today,

the

intelligent

the world would

over

once

would be

for boom, bust
and world-wide chaos.
[And that
is really what is at issue here to¬
night—are we going to keep faith
with

straight

these

Prejudice, Hatred,

Fear and Ignorance
First

fear
in

have

intelligent people

all

and

ignorance

The

certain

recent mass

lynching

Georgia were not merely the
unwarranted, brutal act of

most

violence

mob

the

United

States in recent years; it was also
an

example of the kind of preju¬

dice that makes war inevitable.

Hatred breeds hatred. The doc¬
trine

racial

superiority pro¬
duces a desire to get even on the
part of its victims. If we are to
work for peace in
j the rest of the
world, we jhere:;<..in . the United
States must eliminate racism from
our
unions, our business organi¬
zations,

tions, and
tices.

educational

our

institu¬

employment

Merit-alone

measure

prac¬

must

a- man.

the
y

Second, in payment for peace,
we
must
give
up
prejudice,,
hatred, fear and ignorance in the
economic

world.

I noticed in the papers
recently
that Governor Dewey doesn't like
my

prejudice, hatred,

This

prophecies.

fore

the

evelt

would

didn't like that

carried

into

disaster

for

mean

that

one

certain to disappear.

ger is that before it

the

and

Governor

time, not
long ago, when the high tariff
protectionists blindly opposed any
to

Canada.

the

industrialization

But look at'

to Canada

today.

our

exports

capita
basis our Canadian exports are
seven times greater than our ex¬
ports to Mexico.
I

a per

supported the British loan of

almost
cause

four

billion

dollars

my,

be¬

I knew that without this aid

in the rehabilitation of its

the

British

econo¬

government

would have been forced to adopt
totalitarian
trade
methods
and

economic warfare of

policy.
same

same

We all remember the

aid

Dewey has expressed

sort which

favoring

This

alliance of

Great
our

historical

foreign

sound

both

traditions

and

Brit¬

attrac¬
speak the
and many of our

may
we

language

Moreover,

with

key

because

have

the

background.
military men,

the

the British Isles

are our

advanced

air base against Europe.
We Must Not Be Hitched to
Britain

Certainly,

American

own

neither

anti-British

City.

Any Gallup poll will reveal
it—we
might as : well face the
facts. Because,] whether we like it

nor

or
not the Russians will try to
socialize their sphere of influence

just as we try to democratize our
sphere of influence. This applies
also to

I plead for an America
vigor¬
ously dedicated to peace—just as
I

and

many,

plead for opportunities for the
generation throughout the
world
to
enjoy the abundance

Russian

character

and

ing

the

land

cally

Rus¬

all

Russian

this

the

climate.

gets into

Western
States

mistake about it—the

Russian retaliation,
would lead
the United States straight into war
unless we have a clearly-defined

Europe

and ; the United
be certain that Rus¬

must

German policy will not be¬
come
a
tool of Russian design

against Western Europe.
The

Russians

business

emo¬

have

;

stirring
up
native
political activity

tional power which Marxism and

communists

gives to the Russian
leaders—and then we can realize

in western Europe, Latin America
and the United
States than we

that

have in

are

force

which

reckoning
cannot

with

successfully by a "Get tough with
Russia" policy.
"Getting tough"
never bought anything real in the
long run—whether for schoolyard
bullies

businessmen

The tougher

[The
business

Reactionaries

Are

War with

that

Russia

reactionary

from

elements

real

States,

the

long

Russia will

destroy each other. /•

must

let

not

our

Russian

policy be guided or influenced by
those inside

outside the United

States who want war with Russia.
This

does not

most

mean appeasement.
earnestly want peace

Russia—but

do want to

be met half way. We (want cooper¬
ation. And I believe that we can

get cooperation
derstands that
is neither

tive

Empire

nor

Russia

once

un¬

primary iobjec¬

our

saving the British

purchasing oil in the

Near .East with the lives of Amer¬

soldiers.

ican

national

oil

cannot

rivalries

allow

force

ducing oil, whether inside or out¬
side of their own boundaries, must
fulfill the provisions of the United
Nations

Charter

and

"Tesources

encourage

world petrole¬
tq rrtake the

maximum amount of

oil available

to all the nations of the. world

equitable peaceful basis—and
not on the basis of fighting the
an

to. But we cannot

respect by cooperating with
the United Nations in a spirit of

Commerce,

flexible

give-

United

And

market

States-Russian Peace

real

peace

treaty

that

the

biggest

I want China,

can

trade.] But at the
have to recognize

Balkans

closer

are

Russia than to us—and that Rus¬
sia cannot

permit either England

the United States to dominate

the

politics of that

China is

though

area.

special
holds

she

case

and al¬

the

longest

frontier in the world with Russia,
the interests of world peace de¬
mand that China remain free from
any sphere of
influence, either
politically or j economically; [And
I know of my own positive knowl¬
edge that that was in Roosevelt's
heart and mind, most specifically
in the Spring of 1944—because I
talked

tail.

it
.

over
.

with

him

de¬

Mr. Truman read that
sentence and

particular
approved it.

All

right—you've already passed
good resolution on this, and I
understand you're forwarding it.
That's enough.]
We

now

need is between the United States

and

time

same

want

get.

Eastern Europe, as places

want

where

can

Treaty Needed
The

and I'm interested in

trade.

our

and

permit the door

to be closed against our trade in
eastern Europe any more than we
can in China.
[I'm Secretary of

war,

For her part, Russia can retain

war,]

We know, what Jtvqssja is up to*,
ip eastern, Europe^- f^..example,/
and Jlussi^ ,'knows what we are up
.

All of the nations pro¬

into war.

there'll be

the

day when the United States and:

this straight, regard¬
what Mr. Taft or Mr,

get

less of
Dewey may say, if we can over¬
come the imperialistic urge in the
Western
world,
I'm ; convinced

United

for

danger of war is much
Communism than it is

imperialism, whether it be
or England—

Let's

war

only

Europe, Latin Amer¬

from fascism, the remnants of
fascism, which may be in Spain or
Argentina.
\
>
,■>

today continu¬

love

They

between
the United States and Russia. They
have

of the United States

tory, and now profess great friend¬
ship for the United States. [Such
friendship! How they love us!]
Yet, these enemies of yesterday
and false friends of

the

less from
are

which had hoped for an Axis vic¬

ally try to provoke

Western

have

stirring up native
political activity

of Eastern Europe and Russia..
Now, when I say that I realize

Provoking

Throughout the world there
numerous

>in

ica and the United States, than we
have in interfering in the politics

get, the
tougher the Russians will get.

powers.

Europe and Russia.

Russians

Communists

world

interfering in the politics

eastern

handled

war.

British imperialistic policy in the
Near East alone, combined with

particularly Europe,]
that never again

Leninism

and-take.

the United States

last¬

any";

settlement.
This
[the nations of the

and

Add

tremendous

ab¬

sia's

Europe
the vitality derived from
rich
Russian
soil
and
the

the

to*

Germany industry "be con¬
verted into military might to be
used
against her—and
Britain,

and by

strenuous

alt
equit¬

can

strategi¬
and Asia;

between

so¬

based
nation,

essential
that

world,

situated

mass

Ger¬

must be assured

sian affairs from 1919 to 1921; by
the geography of the huge Rus¬

sian

European

means

British,
in

that

German

solutely

formed—

Americans

settlement,

unified

Germans,
Poles,
Swedes,
and
French; by the czarist rule based
ignorance, fear and force; by
intervention

control

Germany,

recognize

able

French

for

must

by invasions of Tartars, Mongols,

the

area

while Russia strives to

be¬

man.

was

our

cialize eastern Germany.

achieve, lasting peace, we
study in detail just how the

must

openminded

Germany and Japan. We
striving to democratize Japan

are

when

fcjjkoti?

about people outside of New York

just two days
President Truman read
these words, he said that
they
represented the policy of his Ad¬
ministration.

like the' British
people
as
individuals.
But
to
make Britain the key to our for¬
eign policy would be, in my opin¬
ion, be the height of folly. We must
not let the reactionary leadership
of the Republican party force us
into that position.
We must not
let British balance-of-power man¬
ipulations determine whether and

Make

talking about people outside1
of New York City when I falk
about that; and 1 think I

And

ever

[Yes,

I'm

ago, when

which now, more than
fore, is the birthright of

re¬

expropriation,

people of the United States.

pro-

British—neither anti-Russian

Her type of land

industrial

suppression of basic liberties
offends the great majority of the

eyes

nor

Europe.

and

anti-Russian press.

the development of

comparative peace would have closed the markets of and realistic policy of our own.
have the common people so great¬ much of the world to American
Neither of these two great pow¬
ly feared war.
er* wants war
exports.
f
i-v
now, but the danUp till now peace has been
r or
the welfare of the Ameriis that whatever their intennegative and unexciting. War has can people and the world it is tions
may be, their current poli¬

abroad

In this connection, I want one
thing to be clearly understood. I

with

customs

pro-British

world

cause

peace.

help of. American technical assis¬

the produc¬

disappears it

enjoy a brief period of pow¬
er during which it
can do irrep¬
arable
damage
to
the
United
States

look

ern

it is

through the eyes of either
the British Foreign Office or a

The dan¬

may

tive

and

Republican Party is the
party of economic nationalism apd;
political isolation—and as sucji- is
as anachronistic as the dodo
and,

veloped areas of the world to in¬
dustrialize themselves with the

For

nation

The

the

the Near East:

the

would

Mr. Dewey won't like
either.
1
:

ain

tivity of these people increases,
our exports will increase. 1
'

action

the world.

defense

tunity to help along the most
rapid possible industrialization, in
Latin America, China, India, and

But I say now

one.

repeatedly—that
Republican foreign economic pol¬
icies

our

world,

and not

said

I have said

;

36 states and
have a popular majority of three
million.
Of course, Mr. Dewey
—as

stable

that

through

carry

himself

We should welcome the oppor¬

essential

it repeatedly—that Franklin Roos¬

mutual

tance and loans.

form,

I said weeks be¬

last election—and

working earnestly,: day after day,
for
a
larger volume of world
trade.. It means' helping unde¬

means

not like what Russia does in East¬

survival

the

Our Domestic

victory

in 1946 is

home.'

Leh¬

need

And

by creditor nations are a
the price of peace. For

every

races.

mean

nation.

nation in the world is
over the world?
Are we going to
the price of giving up prejudice,
make them have confidence in the
hatred, fear, and ignorance.
United States?
It rests on
our
Let's get down to cases here at.
shoulders.]

Lehman

and

[Mr. Chairman, the gamblers say
people
here
tonight don't

They

for

men.

price of

you

mean

the

just price for peace. If
$400 bil¬

but

dollars

member

stride in the people's progress.
:

thing

should be willing

increas¬

of the United States Senate.

Victory for Mead

made peace

now

exciting

lion, we should be willing and
happy to pay more than that for
peace. But certainly, the cost of
peace is not to be measured
in

He will make a great Gov¬
ernor—worthy of the tradition of

stead¬

one

First off, I want to give my own
personal endorsement to the can¬

use

creditor

when

worse.

text, follows:

servants

The United States is the world's
great

cies may
eventually lead to war.
To prevent war and to insure our

pro-Russian.

later perish by the

sooner

fastly backed preparedness
throughout the 30s. We have no

prepared

business.

good

tariffs

take about it,

that

conference

text

destruc¬

part

the

The

bomb, guided missiles and
airplanes
which soon will fly

no
change in
foreign policy of

Government,

our

atom

been

established

Satan.

by promoting the long-term sta¬
bility that comes from an everincreasing standard of living. This
would not only be good politics
and
good morals—it would/be

During the past year or so, the
significance of peace has been
increased
immeasurably by the

that

tuting a statement of the foreign
policy of this country.
the

and

Lord have bowed to the

consti¬

trust

fidence,

Thursday,' September 19, 1946

Russia..

our

part,

insist

trade

and

that

the

economic

door

devel¬

opment opportunities be left
wide

in China as in all the
However, the open, door to
more business in the political af¬
trade and opportunities for eco¬
fairs of Eastern Europe than Rus¬ nomic development in China are
sia -has in thev political affairs of meaningless unless there is a uni¬
Latin America. Western Furone fied and
peaceful Chinst—built on
and the United States,
We may the cooperation of the various
should recognize that we have

we
no

open

world.

[Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

in that country and based
policy of the out¬
side powers.'
1
'
*
1
groups

hands-off

tion.

Realistically,

hope for

can

tion

the

now

most we
reduc¬

a safe

Our excessive expenses for mili¬

military expenses and a
long period of peace based on mu¬
tual trust between the Big Three.

tary purposes are the chief cause
of our unbalanced budget. If taxes
are to be lightened "we must have

During this period, every effort
should be made to
develop as
rapidly as possible a body of in¬

the

ternational

.We

still arming to the hilt.

are

basis

Russia—a
broken

real

that

peace

with

peace

cannot

extremist

propagan¬

dists.

Mutual Toleration Needed
ideas

third of the world.

moral

the

lead

modern

rapid disintegration.

world

Over Business
Removal

(Continued from
New York 8, N. Y. The names of
those
submitting comment will
be withheld

comments

Broker

;

and

Russia

States,

re¬

would
For

opposed

in¬

I do not believe it

good for the industry.

thing, I do not think the

one

limited

liability

the

England

visers tell

faction
their

the

common

man

respective

areas of political
But by mutual agree¬

dominance.

ment, this competition should be
put on a friendly basis apd the
Russians
should
stop conniving
against us in certain areas of the
world

just

should

stop

scheming

against them in other
parts of the world. Let the results
the

two

systems

speak

for

themselves.

Meanwhile, the Russians should
stop teaching that their form of

communism must, by force if nec¬

ultimately

essary,

triumph over
capitalism—while we

democratic
should

those

ears

our

among us who would have us be¬
lieve
that
Russian
communism
and

free

our

enterprise

system
with another, in
profitable and productive peace.
not

can

live,

Under
tition

friendly peaceful

the

Russian

American
become

one

world

will

alike.

compe¬

and the

gradually

The Russians

will be forced to grant more and
more
of the personal freedoms.

[You don't like the word "force"?
I say that in the process of time
they will find it profitable enough
and opportune to grant more and
more
of the personal freedoms.
Put it any way you want.
That's
the
course
of history just the
same.
And we here, in the United
States, in like manner will] be¬
come

and

with

the

absorbed

problems of social-eco¬
/
that

nomic justice.

Russia
we

must be .convinced
not
planning for

are

against her and
that

tain

war

we must be cer¬
is not out for

Russia

domination.

But in this competi¬
must insist on an open
door
for /trade
throughout the
world. There! will always be an
ideological conflict—but that is
no reason
why diplomats cannot
work out a basis for both systems
to live safely in the world side
by side.

tion,

Once

the

fears

the

United

Russia

States

Senate

and
have

been allayed by practical regional

political reservations, I am sure
that concern'over the veto power
would

[J want

tics

which "we have to build

functioning, powerful United Na¬
tions and a body of international
law. And as we build, we must
develop fully the doctrine of the
rights of small peoples as con¬
tained

United

the

Nations

This law should

Charter.

ideally

diminished.

greatly

theme—where
should

the

veto

power

apply,

and
where
it
shouldn't.] Then the United Na¬
tions would have a really great
power in those areas which are
truly international and not re¬
gional. In the world-wide, as dis¬
tinguished from the regional field,
the armed might <of the United Na¬
tions should be so great as to make

opposition useless. Only the United
should

Nations

have

atomic

bombs and its military establish¬
ment should

give special empha¬

adr power. It should have
control of the strategically located
sis

air

bases

with

the

which

United

States and Britain have encircled
the

world.

individual

And

not

nations

only should
prohibited

manufacturing
atomic
bombs, guided missiles and mili¬
tary aircraft for bombing pur¬
poses, but no nation should be al¬
from

lowed

spend on its military
establishment more than- perhaps
to

15% of its budget,

[I'm talking to

between firms and between firms

their

would

customers

cer¬

tainly not make for unity in the
brokerage business and could even
cast

shadow

the whole in¬

over

much to Indonesians and dustry.
Greeks as to Bulgarians and Poles
The
corporation laws of the
—but practically, the application
state might very well conflict with
may be delayed until both British
the rules of the New York Stock
and Russians discover the futility
Exchange at several point, and
of their methods..
if so, it would probably be very
In the full development of the
difficult for the Exchange both
rights of small nations, the British to
discipline members and to grant
apply

Russians

and

learn

can

lesson

from the Good Neighbor policy of

under

For

Roosevelt.

Franklin

Roosevelt, we
in the Western
Hemisphere built a workable sys¬
tem of regional internationalism
that

fully protected the sovereign
rights of every nation—a system
multilateral

im¬

that

action

th e

strengthened

measurably

whole of world order.
In

States

United

the

in¬

favors.

members

The

Stock

until

change would very likely become
endlessly involved in legal dis¬

might, consequently,
even
have to incorporate itself.
The tax advantage claimed by the
advocates of incorporation is rath¬
er dubious, too, in my opinion. It
and

putes

is certain that the tax authorities
would look upon the incorporated

brokerage house
holding company.

personal

public opinion will be allpowerful. Our people are peaceminded.
But they often express
themselves too / late—for
events
today
move
much faster than
public opinion. The people here,
as everywhere in the world, must

Broker

•'

•

We
if

after

meetings such as this, and
through persistent pamphleteer¬
ing, the people can be organized
peace—even though a large
segment of our press is propa¬
gandizing our people for war in
the hope of scaring Russia. And
we
who look on this war-withRussia talk as criminal foolish¬
for

must

rect

to: the

may

cause

carry

we dare to

message

our

speak out.

that peace—the kind
I have outlined tonight
issue, both in the
Congressional campaign this fall
and right on through the Presi¬
believe

peace

—is

basic

the

issue

this

whether

"two

How we
determine

will

live

world"
whether

"one
worlds"—but

not

live at all.

Davies & Mejia Adds
SAN

FRANCISCO,

CALIF.—

Anthony G. Richman is now con¬
nected with Davies & Mejia, Russ
Building,
York

members

and

Exchanges.

San
.

the

Francisco
y

': *

New
Stock
.

With Brush, Slocumb & Co.
(Special

The

Financial

Chronicle)

SAN

FRANCISCO,
CALIF.—
Brush, Slocumb & Co., 1 Mont¬
gomery Street, have added E. S.
Arnold, Jr., to their staff.

•

Broker
,<

believe

the

No.

opposed

for

our

firm

this

fore

The

Financial

Chronicle)

incorporation

also

opposed to permissive
incorporation for others. Incorpo¬
ration
of

would

house
because of
limited liability the
corporation might give each part¬
ner protection against the others.
though

where

Broker

...

of 50 national retail trade
associations that "we can't go on
indefinitely with an economy half

tailers
the

No.

problems. According to Asso¬
ciated Press accounts from Wash¬
ington Mr.
Schindler
acknowl¬
edged that some controls "may be

whole

circumstances,

the

for instance

state

corporation laws. As I
the customs and practices

it,

see

clared

that

From the

incorporation for sev¬
reasons, one of which is that

because of the limited

liability of
the corporation/ it gives the part¬
ners
protection against one an¬
other. The argument of the oppo¬
sition

that the unlimited liability

the

ners

tion
up.

partnership

and

customers

tion

affords

part¬

protec¬

against loss does not stand
It is generally easier to find

out what the

assets of

rate of

small

firm

New

York

which

than

learn

corpora¬

what

Exchange to¬
day to accumulate capital from
earnings except by taking advan¬
tage of the provisions of the tax
laws

applying to the corporate
of organization. Unless in¬
corporation is made permissible,

thirds

flyer

would

earnings. If I had to
the question today,

vote

Broker

favor
No.

it.

history.'

the

during

the

described

and

for

ten

years

firms have
a

1936-46

this

is liable to the full extent of. his

for all transactions, in

two-

sales;

period

'sobering

and realistic factor' in any analy¬
sis of the trend.
/

"He said that total income
pay-*
ments

rose

than

dollar

re¬

the

so,

the

Stock

and

which can
incorporation. That
vantages

the

lose

farm market is

"Louis J.

banks

companies Were'al

buy

seats

the

change

is
no
valid
argument
permissive incorporation.
Firms that must rely upon the
good graces of some particular of¬

sole

the

1946

rate

headed

group

;

Corp.,

Market

outlined

"Canned

Department
the

will

Co., Inc.,
of underwriters

due
1962,
and
the company's

stock,
tures

par
were

and

record
season

consumption

"Soaps,

vegetable?

supply

during

and total sales

are

expected to
4

shortening,

lard and
butter will be in short supply for
the balance of this calendar year,
but an improved position is ex¬

convertible
preferred
value $25. The deben¬

pected early in 1947.

■/://■

"Coffee and tea will be in ade¬

ac¬

quate supply.

crued

interest, to yield 5.20% to
maturity. The preferred stock was
offered at $25 per share.

offi¬

outlook

exceed last year.

120,000
5% cu¬

priced at 96% and

retail

fruits

the 1946-47

ip-i

average

special advices Sept. 12 from

group as follows:

fund debentures of Airline Foods

mulative

for the reconversion period to the

Sept. 18 which offered $1,700,000
principal amount of 5% sinking

stocks

to
the
New
York
"Herald Tribune" it1 Was \stated:
/

Airline Foods Debs, and
on

Eco¬

Washington

"Comrherce

Waddell

Business

$150,000,000 a month qnd that
during July they increased $800,
000,000."
:

cials

Herrick,

great

Paradiso, Acting Chief

Office

manufacturers'

creased

rights/ in the field.

Preferred

twice

over

war.

nomics, told the retailers that
during the first six months of

Ex¬

against

before the

present

$4,000,000,$11,500,000,000 in

Exchange coulc

business

1940

1945, Mr. Miller said that in terms,
absolute
buying power' the

can

from

accrue
some

000

comprehension of the ad¬

lowed

farmers climbed from

Exchange

idea at all of what

corporation is

have

"Sugar will remain scarce prob¬
ably longer than any other food

item.

"Production of footwear will be

expansion of the company's busi¬ a bit lower in the last half of this
through the acquisition of
year than it was in the first half. •"
the capital stocks of four other
"Men's apparel is expected to
companies, on which it has op¬ reach
record production levels be¬
tions. These companies are the
fore the end of this year, but the
David G. Evans Coffee Co., St.
essential demand is expected to
Louis; the Empire Biscuit Co.,
be for 28,000,000 suits, compared
Brooklyn; San Jose Packing Co.,
to an anticipated supply of 25,000,San Jose, Calif., and the James

ness

about

increase

tail sales, rising 116% from 1939
various
through 1945, while sales advanced
corporations in the securities in
dustry will have more capital than only 82% during the same period-;
the firms of the Exchange.
"Asserting that net income ta
Many
in

Harper
Mo.

Supply

Co.,

City,

I just don't see how incorpora¬
OMAHA,
NEB. — Mjariori
J.
Kennedy is with the National tion would
give the customer the
Company of Omaha, First Nation¬
protection he should have. Under
al Bank Building.
the partnership rules, each partner

With Metropolitan St. Louis
possessions
(Special to The Financial Chronicle)

value

form

Proceeds from sale of the securi¬

$93,000,000,000, 'the largest

accounted

rises

belongs to the

Stock

ties will be used primarily for the

about 50% of

seven

at an annual

were

"However, he noted that price
a

the

several

Department, said that sales

months of 1946

There just isn't any way for

advices

of retail stores in the first

in the nation's

Broker No.

press

"Nelson A. Miller, Chief of the
Marketing Division of the Com¬

the

possessions of the various
partners of a firm are worth. I
really haven't gone sufficiently
into the matter yet but I believe
there is a tax advantage to incor-?
poration, particularly in the event
that a corporation makes a prac¬
tice of declaring
a
dividend of

are

same

quote:

merce

de¬

they have served

their purpose."

have developed in the trade
during the last 150 years are en¬
tirely adequate for the needs of

business.

but

that they must be elihiin-

ated "as soon

set

new

temporarily,"

necessary

„

favor

eral

held in Washington at
of
Secretary of

was

invitation

Commerce Wallace to discuss
post¬

large

advo¬

was

tives

view of the way our
company is set up, we do not need
the corporate form of organiza¬ ficer. or officers of a bank or in¬
tion. There are only three part¬ surance company in order to stay
ners
in our firm and we have in
business
can't
even
justify
only rone ' branch
office.
Our their existence let alone have any
in

cause,

possible moment"

earli^

Sept.
12
by Alfred
Schindler, Under Secretary, of
Commerce, who told representa¬

the broker¬

expose

industry to

age

possibly

say we have been rather apa^
thetic
over
the
proposition be¬

and, as it is just a
"permissive" to com¬
pulsory incorporation, I am there¬

and insurance

when

from

With Nat*l Co. of Omaha

firm

step

all

;

talking for

members

take

(Special

serve

purposes.

con+

"at the

war

members

dential election in 1948.
meet

even

account and

own

chance

Broker No
I

di¬
people—^even, though ebmj&fcy/,;is
^gmair: and is both claim
bes called communists be^ closely knit and held. I can see

ness

our

had

what the experience of other
firms was with incorporation

partners

incorporate

incorporation just wouldn't
our

through

And

inevitable.

mass

Most of the business

do is for

be convinced that another war is

not

wouldn't
could.

No.

feel that per¬

see

Ex¬

formed

you

to read that over to¬
morrow,, in the papers; it would
take a whole book to develop that

liability of the partner¬
ship. The varying degrees of fi¬
nancial responsibility which per¬
missive incorporation would inject
and

business

permissible, however, we free enterprise and half
con¬
not incorporate ourselves trolled." The
meeting of the re¬

would

limited

are the receivers. These
the hard facts of power poli¬

to be guided
what our tax ad¬

Urged

Government

over

cated

going

are

somewhat

tion is any substitute for the un¬

are

endeavor to prove
deliver the most satis¬

corpora¬

two ideas will

which

can

est

Broker

missive incorporation is primarily
a
tax matter. If incorporation is

No.

strongly

corporation

In brief, as I see it today, the
Order is bankrupt—and
United

been

trols

1456)

page

made

World

the

have

follow:

ceived

Our

ideas of free enterprise democracy
will govern much of the rest. The

request. The latest

which

The World Order Is Bankrupt

Removal of Controls

NYSE Governors Defer

social-eco¬

nomic justice are going to govern

nearly

based

principles and not on the Machia¬
vellian principles of deceit, force
and distrust—which, if continued,
will

/.Russian

law

1487

Kansas

;

Airline Foods Corp. is the par¬
ent of a group of subsidiaries en¬
gaged in the manufacture and

processing of various foods which
are

sold

names,

under

their

own

principally to large

chasers such

brand
pur¬

wholesale grocers,
store chains, restaurant chains and
bakeries. Other subsidiaries are
as

000 suits.

about

Production in 1939

21,000,000 suits.

"Hosiery will be

...

was
^

tight market

for the remainder of the year.

"Cotton fabrics production—for
apparel—will be slightly higher
this year than last.
"Radio production will be about
twice

that of 1939 in the number

of sets turned out.
"Demand

for

paper
product?
which the firm engages and this
LOUIS, MO.—Metropolitan
engaged in the distribution of a will remain far ahead of supply
is as it should be. Only some very
Practically
and .- immediately, St, Uouis Company, ,718 Locust
widely diversified line of food for this year.
we
must .recognize that we are Street, has added Eugene O. Pot¬ large houses,' I suspect, want in¬ products primarily to institutional
"Toiletries production is steadi¬
pot yet ready for World Federa¬ ter to the staff.
corporation.
.
i'
ly increasing."
' consumers.

business there.]

ST.

1488

THE COMMERCIAL & FINANCIAL CHRONICLE •

Thursday, September 19. 1946

in
•

Acme Electric Corp., Cuba,
June

N. Y.

filed

132,740. shades ($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four selling stockholders
the proceeds from fhe sale of 63,860 shares.
Company
also will receive proceeds from the sale of 20,000 war¬
rants for common stock to underwriters at an aggregate
Of the net proceeds ($292,940) $50,000
pay current bank loans; about $20,000
will be used for machinery and equipment, and the re¬
mainder for Working capital.

price of $200.

will be used to

Acme-Hamilton

Aug.

stock

filed

($20

par)

•

Aero Research Corp., New

York

Sept. 11 (letter of notification) 170,000 shares of $1 par
Offering—Price $1 a share.
No underwriting.
For organizing business of developing inventions in
common.

American

Bedford, Mass.

American

Broadcasting Co.,

Inc., N. Y.

will sell warrants for 25,000 common shares to the
a warrant.
The remaining war¬

working

:V'</

capital.

:
■.

American

]

Cladmetals

of Pittsburgh

Co.,

use
$1,025,000 of proceeds of debs, for payment of an
indebtedness to Bankers Trust Co., New York. Balance,
estimated at $373,680, will be added to working capital.

Corp., New York

filed

400,000 shares ($1 par) common stock.
Price $3 per share. Proceeds—Of
the proceeds company will use $60,000 to repay a bank
loan, about $500,000 for new equipment and $250,000 for
Underwriters—None.

Air

July

various

points

United

the

"■

■i.;"

■

program,

•'■"d/' d-

American

Food

Frozen

Lockers,

■

Inc.,

filed

ceeds to pay off notes and loans,
and inventories.

common, of which 10,000 share are reserved for conver¬
sion privilege,
Only preferred being offered. No under¬

Offering—Price

purchasing
rights, etc.
■

plates,

dies,

$10

share.

authors'

Proceeds

royalties,

for

publishing

All Metal Products Co.,

Wyandotte, Mich.

Aug. 14 (letter of notification) 13,000 shares of class B
common on behalf of Mary E.
Reberdy. Offering price,
$5.50 a share. Underwriter—Andrew C. Reid & Co.,

Detroit, Mich.

Proceeds—To

holder.
American Brake Shoe

Co., New York

Aug. 16 filed 199,101 shares tno par) common. Under-r
writing—No underwriting. Offering—Shares are offered
for

stock. Underwriting—Union Securities

Corp., New York.
by amendment.
Proceeds—Net proceeds, with
other funds, will be used to redeem $20,000,000 of 7%
cumulative preferred stock at $115 a share plus accrued
dividends. Indefinitely postponed.
>
.
^
Price

Subscription

common

American Water Works Co., Inc., N. Y.
March 30 filed 2,343,105 shares of common (par $5) plus
an additional number determinable only after the results of competitive bidding are known.

To be filed by amendment.

stockholders

record

Sept. 13 in the: ratio of one additional share for each
four shares held at $35 per share.
Rights expire Oct. 21.

Offering—Price to public
Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds (to
be sold privately) are to be issued to acquire certain

& Electric, liquidate
Water Service Co. and
Ohio Cities Water Corp., and provide cash working capi¬

subsidiaries,

tal.

Common stock is to be

Community

exchange offers
For details

see

are to be sold for cash to underwriters.
issue of April 4.

American Wine Co.,

St. Louis,

Gas

Co.

'•■'•v'

the public.
Price by amendment.
by six stockholders. •••'/];

Arkansas Western Gas Co.

(9/20)

are

being sold

filed

93,430

shares for each 4 shares held. Rights
CST Sept. 18. Unsubscribed shares will
Proceeds—At same time ; of
common stock offering, company intends ttfsell to insti¬
tutions $1,500;000 first mortgage sinking fund bonds,/ 3%
series, due 1966. Funds from the sale of the bonds
the ratio

of 3

expire at 11

a.m.

underwriters.

sold

and

Armour and Co., Chicago

12 filed 350,000 shares (no par) cumulative first
preference stock, Series A; 300,000 shares of convertible
second preference stock, Series A, and 1,355,240 shares
common stock
(par $5).
Underwriter—Kuhn, Loeb &
Co., New York.
Offering—The .350,000 shares of first
preference stock will be offered in exchange to holders
of its 532,996 shares of $6 cumulative convertible prior
preferred stock at the rate of 1.4 shares of first prefer¬
ence stock for each share of $6 prior preferred.
Shares
of first preference not issued in exchange will he sold
to underwriters. The 300,000 shares of second preference
stock will be offered publicly.
The 1,355,240 shares of
common
will be offered for subscription to common
stockholders of the company in the ratio of one-third
of

new

scribed

for each
of

common

will

share held.

Unsub¬

purchased by the
underwriters.
Price—Public offering prices by amend¬
ment.
Proceeds—Net proceeds will be used to retire all
unexchanged shares of $6 prior stock and to redeem its
Outstanding 7% preferred stock. Temporarily postponed*
Artioom

Corp., Philadelphia

August 16 filed 151,367 shares (no par) comilion. Under¬
writers—No underwriting. Offering—Of the total, 148,633
shares will be offered for subscription to common stock¬
holders in ratio of

one

share for each two shares held.

The remaining

2,734 shares and any shares not subscribed
for by common stockholders will be offered to employees
of company. Price—$10 a share. Proceeds—The company
estimates it will use $300,000 of the proceeds to purchase

ing capital. Issue postponed indefinitely.
•

Baidoe

(W.)

Ansah A Co., Inc., New York

11 (letter of notification) 650 -unitsHf^,$100 par
preferred and no par Common.
Offering^Pfice $100a
unit,
No underwriting.
For purchase of trucks and
lumbering
equipment
and
other
general corporate
Sept.

purposes.

•

☆

S,.v

Western

33,639 shares of common

additional space and equipment, and $350,000 for manu¬
facturing facilities. The balance will be added to work¬

Mo.

July 24 filed 120,000 shares ($1 par) common. Under¬
writers—None.
Offering—Shares being registered are
held by Louis E. Golan, President of company, who
acquired them last June 5 upon the surr&hder for can¬
cellation of $432,000 of notes of the colnpany.
About
60,184 shares will be offered to stockholders of the com¬
pany, including remaining shareholders of Cook's Impe¬
rial Wine Co., at $3.60 each and at the. rate <xf 12 new

Corporate and Public Financing

—SPECIALISTS IN

—

Underwriters and Distributors

M, United States Government Securities
•;

State and

Corporate and Municipal

☆

Municipal Bonds

Securities

The

|c. j. devine

FIRST BOSTON

CORPORATION
*

initially for cash

to common stockholders of parent and to public holders
of preferred stocks of Community and Ohio in exchange
tor their shares.
Stock not subscribed Or issued under

Boston

offered

filed

stock (par $5).
Underwriters—Rauscher, Pierce & Co. Inc., and E. H.
Rollins & Sons Inc.
Offering—Stock will be offered to

American Water Works

two

☆

Underwriters—

Probable bidders iiiclude

Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The

assets of

of approximately $100,000, to purchase
machinery and for working
capital.

July

July 18 filed 100,000 shares each of $100 par prior pre¬
ferred stock and $100 par convertible second preferred

the selling stock¬

Co., New York

by amendment.

28 (letter of notification) 10,000 shares of 5%
cumulative convertible preferred and 25,000 shares Of

Arkansas

June

•

(

loans

common.

common

and for working capital
v

bank

Prices—$6 a share for
Proceeds—To re¬

common.

share for

stock will be used to retire $840,000 3%% Bonds
$210,000 serial promissory note. It will also deposit
$600,000 with the trustee under the indenture securing
the first mortgage bonds. Remaining proceeds will' be
added to general funds.

con¬

First Boston Corp. (Jointly).

Algonquin Publishing Co., Inc., New York
Aug.

tire

wood-working

V;:

Common.
No underwriters.
Offering—Prices $10
share for preferred and $2 a share for common. Pro¬

share of

($5 par) common stock.
Underwriter—E. H. Rollins & Sons, Inc., New York.
Offering—Company is offering the stock for subscription
to common stockholders of record Sept. 5 at $10 a share

White

Aug. 22 (letter of notification) 5,000 shares of 6%

one

preferred and $1

;

Plains, N. Y.

Aug.

Aug. 12 filed 30,000 shares ($100 par) cumulative pre¬
ferred stock.
Underwriter—White, Weld & Co. Price
by amendment.
Proceeds—Net proceeds initially will
be added to general funds, however, the company antici¬
pates it will use the funds for its building ana expansion

Express Interna?I Agency, Inc., New York

125,000 shares of 50-cent par common.
Underwriters—Newburger & Hand; Gearhart & Co.,
Inc., and Burnham & Co., all of New York. Offering—
The shares will be offered publicly at $6 a share.
Pro¬
ceeds—Estimated net proceeds of $656,250 will be added
to general funds..

writers.

>•

($5 par) and 120,000 shares of
(50c par).
Underwriter—Amos Treat & Co.
Offering—To the public in units of one share of pre¬

Colortype Co., Clifton, N. J.

American Locomotive

installations

-J

;

vertible preferred stock

ferred and

July 8 filed 196,500 units comprising 196,500 shares of
voting common stock ($1 par) and 589,500 shares of non¬
voting common stock ($1 par), each unit consisting of
1 share of voting common and 3 shares of
non-voting
common.
Underwriters—None—the company intends to
distribute its common stock directly to the public. Offer¬
ing—Price $6 per unit.
Proceeds—Net proceeds esti¬
mated at $1,179,000 will be used to pay a mortgage oh
plant, pay accounts payable, purchase equipment, for
building alterations and working capital.

par)

employees of the com¬
Price—Debentures at 100. Proceeds—Company will

ground
States.

Zinc, Lead & Smelting Co., St. Louis

common

rants will be sold to officers and

remaining 59,816 shares

Proceeds—Proceeds to go to

offered for

vertible preferred stock ($10 par) and 70,000 shares ($1

June

The

Sept. 6 filed 336,550 shares Common stock (par $1).
Un¬
derwriting—No underwriting.
Offerings-Stock will be

underwriters at 10 cents

Air Cargo Transport

held.

subscription to common stockholders of rec¬
27 filed 950,000 shares ($1 par) common stock.
ord on Nov. 1 in the ratio of one additional share for
Underwriter—Dillon, Read & Co. Inc., New York, Offer¬
ing—A maximum of 100,000 shares may be sold %y-com¬ ; reach two shares held.' The subscription offer will "ex¬
pire on Nov. 21. Unsubscribed shares will be offered
pany to persons, firms, or corporations with whom the
for subscription to officers and directors of the company.
corporation had network affiliation agreements on March
Price—By amendment; Proceeds—Working capital.
31. The remainder will be offered publicly.
Price by
amendment. Proceeds—To prepay notes payable to lacAnsiey Radio Corp., Trenton, N. J.
4
':
5
quire radio station WXYZ, to construct broadcast trans¬
Aug. 29 filed 70,000 shares of Class A cumulative conmitter for station KGO at San Francisco and for

commop stock at $2 a share above the bid price of such
common on the effective date of the registration. Com¬

pany.

each

■June

American

Aug. 22 filed $1,500,000 Of 5% sinking fund debentures,
due 1961, and 50,000 shares ($1 par) common stock.
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
& Co., Chicago. Offering—The debentures will be of¬
fered publicly, The common shares Will be issuable upon
the exercise of stock purchase Warrants for purchase of

pany

for

will be retained by Golan.
the selling stockholder. -

used to defray part of the cost of its plant expansion and

improvement program.

connection with aircraft.
Aerovox Corp.,

Ohrstrom & Co. and S. R.

Livingstone & Co.
Offering—Company is offering the
50,000 shares of preferred, while the 82,000 shares of
common are being sold for the account of certain stock¬
holders."
Prices—$20 a share for the preferred, and
$11.50 a share for the common. Proceeds—Company will
apply proceeds
to fully
discharge secured demand
notes, mortgage notes and partial discharge of de¬
benture indebtedness.
•

will be sold to other persons in¬
officers and employees.
Price, $35 a share.
Proceeds—Net proceeds, estimated at $6,915,285, will be

cluding

5% cumulative preferred
shares ($1 par) common

shares
and 82,000

Underwriters—G.

stock.

N. J.

Corp., Trenton,

Mfg.

50,000

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

Unsubscribed shares

New York

•

Pittsburgh

and other cities

V Jt
•

Chicago
,

co.

Kidder, Peabody Of Co.

INC.

Founded 1865

48 WALL

Chicago

•

ST., NEW YORK 5, N. Y.

Boston

•

Cincinnati

Philadelphia
•

St; Louis

•

•
■

HAnover 2-2727

Pittsburgh

•

■
.■

Cleveland

New York

Soft Francisco
.

Members

erf the New York and Boston Stock Exchanges
Boston

Philadelphia

't,

Chicago

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

164

Volume

1489

Bids

Rejected—Company July 23 rejected two bids re¬
Blyth & Co., Inc., and F. S. Moseley & Co. and associates submitted a bid of 100.06 for a
4.30% dividend.
Harriman Ripley & Co. and Mellon
Securities Corp. bid 100.779 for a 4.40% dividend.
In¬
definitely postponed.

Candego Mines, Ltd., Montreal, Canada

ceived for the stock.

NEW ISSUE CALENDAR

•'<

•

•'

■

(Showing probabU date of offering)

May 31 filed 500,000 shares of

used for

Arkansas

Western Gas

Co.--------------Common

September 23,
Commonwealth
Scovill

..Common

September 24, 1946
Built Homes, Inc.__Pref. & Common

September 25, 1946

October 1, 1946

Wheeling & Lake Erie Ry.L.__—Equip. Trust Ctfs.

Barker Dome Oil & Gas Co., Dallas, Texas

Gas

Co.

•

stockholders
of
Southern Union Gas will be offered the right to pur¬
chase the Barker Dome common at $1.10 a share in the
ratio of one share of Barker Dome common for each
Union

Offering,

common

four shares of Southern Union common

writing. For general business purposes.
•

Manufacturing Co.,

Offering—

capital.

Underwriter—Paine, Webber, Jackson* &

Sept. 18 (letter of notification) 20,000 shares of common
Stpck (par 50d). Offering-—To be publicly offered at $1.20 ;
per share (estimated market). Underwriter — Boftd &
Goodwin, Inc. will act as broker. Proceeds to selling
stockholders.
7•
;7v-'''';
7,.
7'-:77 7,: 7

Class B

Proceeds—Net

cago and Harris Trust and
ance

III.

Aug. 14 filed 150,000 shares ($100 par) cumulative
ferred stock.

share.

•

proceeds will be used to redeem the out¬

on a share for share
exchange basis to
holders of its old preferred stock other than the Middle
West Corp. which holds
38,564 shares of such stock.
If

common shares of American Gas and
preferred stock of Brunner. Business—
of commercial refrigeration condensing

Manufacture

units and air compressors.

•
Mo.
Buffonta Mines Ltd., Toronto, Can.
notification) 41,000 shares of 5%
Sept. 12 filed 1,000,006 shares $1 par (Canadian cur¬
cumulative convertible $6 par preferred. Offering price,
rency) common. Underwriting — George F. Jones Co.,
$6 a share. Underwriter—Estes, Snyder & Co., Topeka,
Inc., Buffalo, N. Y. Price—$1 a share, American curJCans. To pay outstanding indebtedness and expenses and 7 rency. The underwriting commission will amount to 20
to open five additional stores in Kansas City, Mo.
7
cents a share. Proceeds—For development of gold min¬
ing properties. Business—Gold mining.
\
Black, Sivalls & Bryson, Inc., Kansas City, Mo.
California Oregon Power Co.
July 29 filed 20,000 shares of 4.25% cumulative preferred

Sept.. 12

Inc., Kansas City,

(letter

.«

($100 par) and 100,000 shares ($1 par) common
Underwriters—F. S. Yantis & Co., Inc., and H. M.

Byllesby and Co.
Offering—Shares are issued and out¬
standing and were purchased from the company by the
underwriters at $96.50 a share for the preferred' and
$10.70 a share for the common.
They will be offered to
the public by the underwriters;
Price, $100 a share for
the preferred and $12.50 a share for the common.
Blumenthal
(Sidney) & Co. lnc., New York
Aug. 30 filed 119,706 shares (no par) common and sub¬
scription warrants relating to 30,000 shares thereof.
Underwriting—None. Offering—Stock will be offered for

writers—Names

man

basis of

common^

„

Gas

Electric

and

Harri¬
sold by

California-Pacific

•

Utilities

Co.,

(jointly); Smith, Barney & Co.-Harriman, Ripley & Co.
(jointly); Blyth & Co., Inc., Stone & Webster Securities

•

Corp. and First Bostoh Corp. (jointly). Price by amendment. Business—Public
utility

Co., San Francisco

Sept. 6 filed $1,670,000 of first mortgage bonds, Series
B, due 1971, and 33,610 shares
($20 par) common.
reimbursement of company's treasury for funds expended
Underwriters—To be determined by competitive bid¬
in redemption of 3,907 shares of 7% cumulative pre¬
ding.
Probable bidders include Halsey, Stuart & Co.,
ferred on April 1, and for funds deposited in trust for
Inc. (bonds only). Proceeds—Net proceeds will be used
redemption on. Oct. 1 of remaining preferred shares.
to redeem outstanding 3%% mortgage bonds of East7ern Oregon Light & Power Co., .whose electric prop¬
Boston Stores of Chicago, Inc. 77:'7-;7 777'
erties were recently acquired by the company; to pay
Sept. 10 filed 30,000 shares ($50 par) 5% cumulative
off short term indebtedness and to reimburse its treas¬
writers—Paul H.

Davis

Offering—Preferred

Co.

will

and

have

non-detachable

Briggs & Stratton Corp., Milwaukee

Aug. 9 filed 76,000 shares (no par) capital stock.; Under¬
G.

Becker & Co., Inc.,

Chicago." Price by

amendment. Proceeds—Shares are being sold by stock¬
holders. Temporarily postponed.

Brooklyn

(N. Y.)

•

Union Gas Co.

Mfcy 3 filed 70,000 shares of cumulative preferred stock
($100 par). Underwriters—To be filed by amendment.

Camfield Mfg.

Co., Grand Haven, Mich.

July 29 filed 220,000 shares ($1 par)

common

stock.

holders

sold

the

filed

Un¬

common

for

will
i

one

19. Shares of

offered

for

sale

($1 par) common stock.
Offering—Stock initially
will be offered to common stockholders of Admiral Corp.
at $3 a share,
Proceeds—$75,000 is earmarked for pur¬
chase of machinery and equipment, and tools, jigs, dies
and fixtures; balance will be available for corporate

common

Registrar

directors

are

•

redeem

its

serial debentures

and

for additional

working capital. Business—Manufacture of 5-cent candy
bars, bulk candy, penny candy, plain package and fancy
package candy.
(Continued on page 1490)
'

•

Distributors
v.

Municipal—Railroad

Trustee
Direct contact with Markets in principal financial centers.

ONE

Hemphill, Noyes CS, Co.
Members New York Stock
NEW YORK

ALBANY

HUNDRED

TWENTY BROADWAY

NEW YORK 15,

N. Y.

E. H. Rollins & Sons

Exchange

CHICAGO

Rector 2-2200

INDIANAPOLIS

Incorporated

;ii
PHILADELPHIA

PITTSBURGH

TRENTON

the

at $5,-

Public Utility—Industrial Securities
•

and

not subscribed for by stockholders and

directors

Company

Municipal Securities
•

not subscribed

officers,

OF NEW YORK

shares held

$10 a share Pursuant to the
subscription rights, F. S. Yantis & Co.
100,000 shares of the 170,000 shares of
for investment. Any of the remaining
70,000

Underwriters

Transfer Agent

common

stocky

common

two

856,125, will bemused to pay the balance of the purchase
price, amounting to $5,150,000, for acquisition of the
candy manufacturing business operated by Clinton In¬
dustries, Inc., as its national candy division With plants
in St. Louis, Mo., and Chicago. The balance will be used

Corp. Ltd., Toronto

The Marine Midland Trust

each

stock

UNDERWRITERS—DISTRIBUTORS—DEALERS'

and

share to

for

and employees will be sold
underwriters. Proceeds—Net proceeds, estimated

Underwriter—Dempsey & Co.

Industrial, Public Utility, Railroad

purchase

officers,

pui poses.

Oct.

shares which

are

150,000

Price—The debentures will be offered at
100 and the preferred at $20 a share. The common will
be offered to stockholders at

are

Canadian Admiral

July

will

rate

.employees.

their own account. The remaining
being offered by the company; Price
$4.50 a share. Proceeds—Company's share to pay rene¬
gotiation refund in amount of $180,000 to the U. S.
Government, and for additional working capital.
$4.50 a share
120,000 shares

subscription at $10

of record
for

issued and outstanding and will
underwriters by three stockholders at

100,000

company.

Sept. 12 filed $2,500,000 of 4% sinking fund debentures,
due 1961; 100,000 shares ($20
par) 5% convertible cumulative preferred, and 170,000 shares
($1 par) common.

fered for

derwriters—Gearhart & Co., Inc. Offering—Of the shares

registered,

holding

St. Joseph, Mo.

—

previous • expenditures.
Business — Operating
.'.public utility.'," 71'"7';77'7777;. •
,

Chase Candy Co.,

Underwriters
F. S. Yantis & Co., Inc. and H. M.
Byllesby and Co. (Inc.), Chicago, and Her rick Waddell
& Co., Inc., New York. Offering—Common
will be of¬

stock

purchase warrants for purchase of 30,000 shares of com¬
mon stock of the total common, 375,000 shares will be
offered for sale for cash. 30,000 shares are reserved for
issuance upon exercise of warrants attached to preferred
and 95,000 shares are reserved for issuance upon exer¬
cise of outstanding warrants. Price—By
amendment.
Proceeds—Net proceeds, together with other funds, will
be Used to pay the company's 2% subordinated note in
the principal amount of $5,268,750 and accrued interest.

writers—A.

•

for

ury

Prospectus will be issued

not exchanged for shares of the
merged corporation.
Underwriters by amendment.
Possible bidders: Glore,
Forgan & Co.; Lehman Brothers-Lazard Freres & Co.

common. Under¬
Stroud & Co., Inc.

(Del.)

merger into the issuer of American Public
Service Co., to provide funds for
retiring the preference
shares of the issuer and American Public Service

one

preferred and .500,000 shares ($1 par)

Corp.

proposed

•

Co., parent,

when market conditions improve.

•

share for each two shares held. Any un¬
subscribed shares will not be reoffered. Proceeds—For

Probable bidders in-

Offering—Stock is being

South West

in connection with the
public invitation for sealed bids
for the purchase of a sufficient number of
such shares
as
same
will be constituted upon consummation of a

of California.
Bids Rejected—Standard Gas & Electric Co. rejected
June 25 two bids for the purchase of the stock as un¬
satisfactory. Blyth & Co., Inc., and First Boston Corp.
bid of $28.33 a share, and Harriman Ripley & Co. bid
of $24,031 a share. ; Stock will again be put up for sale

stockholders at $10 a share on

by amendment.

Ripley & Co.

Standard

subscription to

common stock (no par).
competitive bidding. Under¬

elude Blyth & Co., Inc.; The First Boston Corp.;

•

Aug. 30 filed its ($5 par) capital stock. Company's name
is to be changed by post effective amendment to Central

May 24 filed 312,000 shares of
Stock will be sold through

share and accrued dividends.

Central & South West Utilities Co.

•

stock,
stock.

than 150,000 shares of old
preferred stock are de¬
posited for exchange the number of shares to be ex¬
changed will be pro rated. Shares of new preferred not
issued in exchange will be sold to
underwriters.' Pro¬
ceeds—Net proceeds from sale of shares not issued in
exchange will be used to redeem old preferred at $110

& Co., Inc.;
Smith, Barney & Co., White, Weld & Co.;
Glore, Forgan & Co.; Lehman Brothers and Lazard,
Freres & Co. (jointly).
Offering—New preferred stock

will be offered

standing Class A

pre¬

Underwriter—To be determined by com¬
Probable bidders include Dillon, Read

petitive bidding.

the outstanding

Savings Bank, Chicago, bal¬

working capital.

Central Illinois Public Service Co.,
Springfield,

the basis of three

Price—$10.25

share.

Chi¬
public

supplied by amendment.
Proceeds—To
off $3,000,000 loan from First National Bank Chi¬

Pay

each

Curtis,

cago. Offering—The stocks will be offered to the
at prices to be

and Mohawk Valley

for

Central Electric & Gas Co., Sioux
Falls, S. D.
May 29 filed 35,000 shares of $2 cumulative preferred
stock, series A (no par), but with a stated value of $50 a
share, and 175,000 shares of common stock (par $1).

Sept. 13 filed 180,185 shares ($1 par) common. Under¬
writers—George R. Cooley & Co., Inc., Albany, N. Y.,

Proceeds

variety of purposes in connection with explora¬
tion, sinking of shafts, diamond drilling and
working

Utica, N. Y.

7 Machine Co., of Albert Lea, Minn.,

•

Mines, Ltd., of Toronto,

To the public at $1 a share in Canadian funds.
—For

Investing Co., Inc., Utica. Offering—
held. No under¬ 7 Of the total, 110,000 shares will be offered publicly and
the remaining 70,185 shares will be offered in exchange
; ;, v;-.7;V
for 23,395 shares of Class B common of American Gas

Bendix Helicopter, Inc., New York

•7 Berbiglia,

Brunner

Ontario

Sept. 6 (letter of notification) 268,575 shares of $1 par
common, of which 90,000 shares are owned by Southern

.f*

June 24 filed, 400,000 shares of common stock.
Under¬
writer—Registrant will supply name of an American
underwriter by post-effective amendment. /

outstanding capital stock of Consolidated Printing Ink
Co., Quality Park Box Co., Inc., and John Beissel Co.,
which will become subsidiaries. In addition, stockholders
of the company are selling 322,521 shares to the under¬
writers for public offering. Price—Preferred $103.50 a
share; common $26.50 a share. Proceeds—Net proceeds to
the company will be used to redeem unexchanged shares
of 6% preferred at 110% and for increasing general
corporate funds.
7
v

Bonds

Tampa Electric Co

•

Carscor Porcupine Gold

ing—19,079 preferred shares will be offered to 6% pre¬
ferred stock on a share for share exchange basis. Shares
not issued in exchange plus 15,921 additional will be
offered to the public. Of the total common, the company
is selling 67,500 shares to underwriters for public offer¬
ing and 55,177 shares are to be offered in exchange for

Manufacturing Co._——.'..Common

Greens Ready

Bigelow, St. Paul

July 19 filed 35,000 shares of 4%% ($100 par) cumulative
preferred stock and 427,558 shares ($1 par) common
stock. Underwriters—Reynolds & Co., New York. Offer¬

1946

Investment Co

(par $1).

mining operations.
•

Brown &

September 20, 1946

stock

common

Underwriters—Sabiston-Hughes, Ltd., Toronto.- Offer¬
ing—Shares will be offered to public at 75 cents a share.
Proceeds—Net proceeds, estimated at
$300,000, will be

40 Wall Street,

WASHINGTON
New York

Boston

New York 5, N. Y.

Philadelphia

Chicago

San Francisco

THE COMMERCIAL & FINANCIAL CHRONICLE

1490

llijfcft*!*

{Continued from page 1489)

Sept

proceeds, estimated at $650,000, will be used to
a $90,000 bank loan, to construct a factory and
office building at San Gabriel, Calif., at a cost of about
$250,000, and to purchase additional equipment, esti¬
mated at $250,000.
The balance will be added to work¬
ing capital.

issuer's sole stockholder, is offering
for its own account. Prices by amendment.

preferred to pay company's indebtedness to
Corp., purchase equipment and real
working capital.

Proceeds of

Finance

?General

estate and for additional

acquire' inventory.

• ■

Inc., N. YJ

Colonial Sand & Stone Co.,

August 15 filed 300,000 shares ($1 par) common stock.
Underwriters—Emanuel, Deetjen & Co.; New York. Price

amendment.

Proceeds—Company will receive pro¬
shares and Generoso Pope,

ceeds from the sale of 150,000

who is selling the remaining 150,will receive proceeds from these shares. The

President of company/
000

notes, open account indebtedness and for purchase of
additional equipment. Any balance will be added to

Indefinitely postponed.

capital.

working

Aug. 20 filed 70,000 shares ($50 par) cumulative con¬
vertible preferred stock.
Underwriter—Union Securi¬
ties

Corp., New York.
Price by amendment. Proceeds
to the proposed issue of preferred stock, the

—Prior

Aug. 2 filed 80,000 shares

of cumulative sinking fund
($1 par)

preferred stock ($25 par) and 350,000 shares
common.
Underwriters—W. C. Langley &

Co. and
Price by amendment. Proceeds—
$1,510,833 to repay notes and obligations; $1,600,000 to
purchase U. S. Treasury savings notes to fund to that
Aronson, Hall & Co.

extent

current liability of

for Federal taxes,
Indefinitely postponed.

company

balance to working capital.

and

plans to call its $3 cumulative convertible pre¬
ferred stock for redemption at $55 a share plus accrued
dividends.
Funds for the redemption will be supplied
a

Proceeds from the sale of

short term bank loan.

preferred, together with other funds, will be used to
repay the bank loan. Indefinitely postponed.
:
;
:

Prescott &

Price—

Offering—To the public.

Co., Inc.

$25 a share.
Proceeds—Estimated net proceeds of $1,356,200 will be used to redeem its outstanding 4% deben¬
tures, due 1967, to pay certain debts and for additional
equipment, manufacturing space and working capital.

Copco Steel & Engineering Co., Detroit

each share of

preferred.

Underwriters—Floyd D. Cerf

Co., Inc., Chicago. Offering—Company offered 59,585%
shares for subscription to present common stockholders
of record

Aug. 6 at $4.50 a share in the ratio of one share
preferred for each share of common held. Rights
expired Aug. 20. The offering to common stockholders
excluded the two principal stockholders who waived
of

remaining 90,4)4% scares

their rights to subscribe. The
and shares not subscribed to
will be offered to the

common

sigckholders

public through underwriters. Price

a share. Proceeds—Approximately $55,000 for pay¬
ment of Federal taxes; $250,000 for payment of a loan;

—$5

$50,000

to Palmer Brothers Engines,

loan

subsidiary, balance working capital.

Proceeds—Of the shares being offered

by amendment.

Aug..,8

filed

250,000

Co.

($1

(9/23)

par)

Inc.,
;

stock.-

common

Crawford Clothes, Inc., L.

I. City, N. Y.

Proceeds—Go to Joseph Levy, President,

amendment.

selling stockholders. Indefinite.

New York

July 29 (letter'of notification) $100,000 7% cumulative
(non-convertible) preferred stock and $100,000 class B
stock.

No underwriter at present, but one ex¬

Price, $50 for preferred and $3 for common.
Proceeds—For purchase of equipment and for operating
capital.
*

pected.

Consolidated

Hotels,

Aug. 9 filed 97,363 shares

Inc.,

Los Angeles

($25

par) 4%% convertible
preferred stock and 150,000 shares (50c par) common.
Underwriter—Lester & Co., Los Angeles. • Price—$25 a

Offer¬

Underwriters—Sabiston-Hughes, Ltd., Toronto.

ing—Shares will be offered to the public at 75 cents a
share.
Proceeds—Net proceeds, estimated at $300,000,

Danly

■: "r

operations. Business
'\V'/v1// ■■■-'

—

Explor¬

Specialties,

Machine

Inc., Cicero,

July 26 filed 62,000 shares ($25 par) 5% cumulative
convertible preferred stock and 71,950 shares (par $2)
common stock 40,000 by company and 31,950 by certain
stockholders. Underwriters—Paul H. Davis & Co., and

Shillinglaw, Bolger & Co., Chicago. Price by amend¬
ment. Proceeds—Company will use proceeds, together
a
$1,000,000 bank loan, to purchase machinery,
buildings and to retire bank indebtedness, Temporarily

with

proceeds to working capital.

Sept. 11 (letter of
common./ Offering—Price

New

share.

For organization of business of

ing.

par

No underwrit¬

manufacturing and

selling airplanes.

Underwriters—To

competitive bidding.

determined

Probable bidders include Morgan

Stanley & Co.; Lehman Brothers; Shields & Co.; Harri-

share.

Proceeds

—

holders.

Unidos

Estados

•

Mexico)

being sold by stock¬

are

•'

;

Mexicanos

(United

States

provides for

their eventual retirement. Plan A

railway obligations at the rate of one

and Mexico
such reduced principal ex¬
1, 1946, at an average rate
specific rates varying some¬
of the several issues. Under

for each dollar of principal amount

to pay interest on
pressed in pesos from Jan.
of approximately 4.35%, the
what based on the seniority
agrees

holders

the

waive

interest

Jan.

from

1946,

to provide annuities
sufficient to retire the securities in accordance with per¬
thereafter and Mexico

agrees

centages set forth under the plan. Such annuities
be

would

paid until the entire principal amount of assenting

plan

railways

obligations

The offering is pursuant to an

shall have been retired.
agreement made with the

July

24 filed

200,000

Inc.

($1 par)

common

stock.

Offering—Offer¬
ing does not constitute new financing but is a sale of
currently outstanding shares owned by members of the
Meyers family, owner of all outstanding stock. After
giving effect to the sale and assuming exercise of certain
warrants and an option, the Meyers family will retain
ownership of approximately 58% of the common stock.

Underwriter—Van Alstyne, Noel & Co.

Fidelity Discount Corp., Detroit i> bt

Sept. 13 (letter of nofifiCatioh) TiJ,000
6% cumulative convertible preferred.

Nelson

& Co., Los Angeles.
Price by
Proceeds—Part of the estimated net pro¬

Douglass

The remainder,
be used to expand a drilling and
Indefinitely postponed.
bank loan.

Dictaphone Corp., New York
July 25 filed 65,347 shares (no par) common stock. Un¬
derwriter—Merrill Lynch, P^rce, Fenner & Beane, New
York.
Offering—Stock will be offered to stockholders
at rate of one-half share for each share held.
Unsub¬
scribed shares will be sold to underwriters.
Price by
amendment.
Proceeds—To be added to general funds.

Temporarily postponed.

■;

'»

Offering—Price

$10 a share.
Underwriter—First of Michigan
Detroit.
For additional working capital.

June 25,

July 19 filed 131,517.3 shares ($8 par) common stock.
Underwriting—H. M. Byllesby and Co., Inc., Chicago,
amendment.

***{.-,

shades ($10 par)
Corp.,

Inc.,

New York

filed 100,000 shares ($5 par) class A stock and

300,000 shares (10 cent par) common stock, of which
200,000 shares reserved for conversion of class A. Each
share of class A stock is initially convertible into 2
shares of common stock. Underwriters—Herrick, Wad-

Co., Inc., New York. Offering—To be offered
publicly at $8.10 a unit consisting of one share of class A
stock and one share of common stock.
Proceeds—$201,000 for retirement of 2,010 shares ($100 par) preferred
stock at $100 a share; remaining proceeds, together with
other funds, will be used for production of educational
dell

films.
•

Fiscal

;

Research

Institute

Inc.,

New York

Sept. 17 (letter of notification) 2,500 shares Of 5% cumu¬
lated preferred stock (par $10) and 100 shares ($1 par)
common.
Not
underwritten. Price preferred, $10 ^pershare; common $1 per share. For working capital.

Drayer-Hanson, Inc., Los Angeles
Aug. 12 filed 80,529 shares ($1 par) class A stock, con¬
vertible into common stock (par $1).
Underwriters—

Maxwell, Marshall & Co., Los Angeles. Price—To public
$10.25 a share.
Proceeds—Net proceeds, estimated at
$694,761, will be used to pay off loans and accounts pay¬
able.
Dumont Electric Corp., New

offered by Dumont Electric Corp., and 69,Dumont Electric Co., a limited partnership.
Price by amendment.
Proceeds—Net proceeds from the
sale of the company's 25,000 shares will be used for gen¬

shares being

•

corporate purposes.
Eastern

Shore

Gas Co.,

Snow Hill, Md.

Sept. 9 (letter of notification) $42,000. 5% notes, due
1960.
Offering price, $1,000 a unit. Underwriter—Bioren
&

Flying Freight Inc., New York

May 6 filed 300,000 shares common stock (par $1). Un¬
derwriters—J. F. Reilly & Co., Inc., and Courts & Co.
Offering—Price to public $3.50 per share.
Proceeds—
Proceeds will be used for the purchase of six land
planes, ten flying boats, reconditioning of flying boats
and working capital.
T

York

Mich.

Aug. 9 filed an unspecified number of shares (no par)
stock..

Manufacturing Co., Chicago

filed 105,000 shares common stock (par $1).
Underwriter—Straus & Blosser, Chicago.
Price—$11.59

•

York/.^i; ;v$<..5*
notification) 300,000 shares of $1

Delanne Aircraft Corp.,

•

eral

common

Ero

Sept.

postponed.

000 shares by

preferred and all of the common are being sold, by
Ben Weingart, President and director.
Company will

Co., Jackson,

securities and for other corporate purposes.

Fashion Frocks,

Power

1971.

III.

Aug. 29 filed 94,000 shares of common stock (par 10c).
Underwriter — First
Colony
Corp.
Offering — 25,000

preferred and $9 a share of common. Proceeds
—Of the total, the company will receive proceeds from
the sale of 851 shares of preferred. The remaining shares

Consumers

stockholders.

International Committee of Bankers on Mexico.

share of

add the

productive capacity,

(letter of notification) $275,000 4% debentures
Underwriters—C. C. Collings & Co., and
Stroud & Co., Inc.; Philadelphia. Price, $101. Proceeds
for purchase of additional water properties or their
due

and

May 31 filed 500,000 shares of common stock (par $1).

exploration program.

East Orange,

lines of

ferred shares will be sold by present

Plan

Cyprus Mines, Ltd., Montreal, Canada

with other funds, will

($10 par) 4%% cumu¬
lative convertible preferred J stock and 300,000 shares
($1 par) common stock. Underwriters—To be supplied
by amendment. Price—$12 a share of preferred and $7
a share of common.
Proceeds—Estimated net proceeds of
$3,420,000 will be used for working capital.

common

products and expand the business. The
remaining 100,000 shares of common stock and the pre¬
new

peso

Aug. 9 filed 300,000 shares ($5 par) common stock.
Underwriters—First Boston Corp., New York.
Price by

June 28, 1946 filed 150,000 shares

add

retirement of the

ceeds will be used to pay a

Inc.,

shares of the common

stock which will be used to increase

Films

,</'

Transit,

ties and

and

Consolidated Air

Sept 16 filed $233,112,385 of outstanding securities of six
Mexican railroads. Offering—Offering to holders of the
railroad securties under terms of two plans, designated
as Plans A and B for reduced interest rates on the securi¬

Business—Investment house.

Commonwealth Aviation Corp.,

is selling 100,000 shares and 15,000 shares are
being sold by a stockholder. The company will use its
proceeds to provide additional factory space and pur¬
chase machinery and equipment and to construct a new
office building. The balance will be added to working

Underwriter: North American Securities Co., San Fran¬
cisco.
Price—At market.
Proceeds—For investment.
.

•

ceeds from the issuance of 50,000

company

Derby Oil Co., Wichita, Kans.
Investment

Commercial

Aug. 28 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock, (par $25) and 150,000 shares of
common
stock
(par $1). Underwriters—Van Alstyne,
Noel & Co. Proceeds—Corporation will receive the pro¬

Aug. 19 filed 115,000 shares ($1 par) common. Under¬
writer—E. H. Rollins & Son, Inc., New York.
Price

filed

June 24

July 17 filed 60,000 shares ($25 par) 4%% cumulative
convertible preferred.f Underwriters—Otis & Co: and

ing for ore.

::...

v'\.

150,000 shares ($4 par) 30c cumulative
convertible preferred stock, convertible into common
stock in the ratio initially of 1% shares of common for
June

Engineers Waterworks Corp., Harrisburg, Pa.

will be used for mining

Inc., Somerville,

Aircraft Products

Columbia

Indianapolis, Ind*

Empire Millwork Corp., New York

company

Corp. of Delaware, East Orange, N. J.

July 29 filed 140,000 shares ($1 par) common stock, of
which 40,000 shares are being sold by two stockholders.
Underwriters—By amendment. May be placed privately.
Price by amendment. Proceeds—From sale of company's
100,000 shares for purchase of inventory, payrolls, and
working capital.
'
'
^

requirements.

Milling & Elevator Co., Denver, Colo.

Colorado

underwriting com¬

of the notes, Eastern

capital.

will use its proceeds for payment of mortgage

company

pany's manufacturing plants, acquisition of additional
tools and facilities, and for additional working capital

Cooper Tire & Rubber Co., Findlay, Ohio

of 5% serial
Underwriter—
Dempsey-Tegeler & Co., St. Louis, Mo. To increase
working capital, establish additional warehouses and

(letter of notification) $250,000
debentures. Offering price, $1,010 a unit.

Sept. 6

Memphis, Tenn.

Cole Manufacturing Co.,

Muskegon, Mich.

Continental-United Industries Co., Inc., N. Y.

eral Finance Cot p.,
common

Motors Corp.,

July 8 filed 250,000 shares 4%% cumulative convertible
preferred stock, Series A ($50 par). Underwriters—Van
Alstyne, Noel & Co.
Offering—Price by amendment.
Proceeds—For rearrangement and expansion of the com¬

Inc., Chicago

Aug. 28 filed 150,000 shares 5% convertible cumulative
preferred ($10 par) and 250,000 shares ($1 par) out¬
standing common stock. Underwriter—Brailsford & Co.
Offering—- company is offering the preferred and Gen¬

Gas

owner

advertised for Sept. 24.

Continental

repay

the

Shore

were

the present

from

Electronic Laboratories, Inc.,

—Net

Industries,

behalf of the issuer but represent an
mitment

Postponed—The company on
19 postponed indefinitely the sale of the stock.

Bids

Sept. 3 filed 150,000 shares 5Y2 % cumulative convertible
preferred stock (par $5). Underwriting—Maxwell, Mar¬
shall & Co., Los Angeles. Price—$5.25 a share. Proceeds

Climax

Corp. (jointly).

Price by amendment. Sale

Clary Multiplier Corp., Los Angeles

Ripley & Co. and The First Boston

man

Thursday, September 19, 1946

Co., Philadelphia. These securities are not

offered on

Food Fair

Stores, Inc.,

Philadelphia

Aug. 5 filed 60,000 shares ($15 par) cumulative preferre'd
stock.
Underwriters—Eastman, Dillon & Co. Price by
amendment.
Proceeds—To be used to redeem 15-year
3%% sinking fund debentures, due 1959;
ulative preferred at
to

working capital.
Foreman

and $2.50 cum¬

$53 a share. Balance will be added
Temporarily postponed.

Fabrics Corp.,

New York

July 29. filed tl 10,000 shares ($1 par) common stpck, aj}
outstanding.
Underwriters—Cohu & Torrey. Price by
amendment.

Volume 164

City Mfg. Co., St. Louis

Forest

■

Graham, Jr., 100,000 shares of issued and out¬
Prices, preferred $100 a share; com¬
a share. ► Proceeds—To retire $6 cumulative
preferred, pay notes, discharge a loan.
standing
mon
$14

17, filed 280,000 shares ($1 par) common stock.
Underwriters—Peltason, Tenenbaum Co., St. Louis. Of¬
fering—Shares will be offered publicly at $11.25 a share.
Proceeds—Net proceeds go to the selling stockholders.

Brothers &

Proceeds—Approximately

Gulf Atlantic Transport'n

;

present shareholders at $3 per share.
Holders
approximately 200,000 shares have agreed to waive

Hammond

Instrument

Co.,

Lake State

Chicago

the

for working capital to

an automatic dishwashing machine in commercial
quantities.
/," / '
././/.." //Y "

uct,

remaining 100,000 shares. Price—$6 a share. Proceeds ,
purchase of sweet potatoes, plant expansion, addi•
Hancock Oil Co. of California, Long Beach,
facilities, research and development work
and working capital. Business—Dehydration of sweet/
Calif.
.potatoes and white potatoes.
Sept. 13 (letter of notification) 140 shares of Class A
common
capital stock.
Offering—Price at market on
\
General Bronze Corp., L. I. City
Sept. 20 on Los Angeles Stock Exchange. Underwriting—
July 26 filed 115,000 shares of cumulative convertible
The sales will be through the brokerage firm of Akinpreferred stock ($25 par). Underwriters—W. C. Langley
Lambert Co., Los Angeles.
The stock is being sold for
& Co. and Aronson, Hall & Co.
Price by amendment.
the account of holders of outstanding fractional scrip
Proceeds—To pay cost of acquisition, construction and
certificates and net proceeds will be deposited for dis¬
equipment of new plant, and for working capital.
In¬
bursement to such holders, pro rata, upon surrender of
definitely postponed.
the certificates held by them.

/Lime Cola Co., Inc., Montgomery

•

Hartford

28, 1946 filed 225,000 shares (10 cent par) common
Underwriters—Newburger and Hano, Philadel¬
phia, and Kobbe Gearhart & Co., Inc., New York. Price
—$5.50 a share. Proceeds—Working capital.

Heat

for its

•

inson &

purchase warrants to the selling stockholders at
a share entitling them to purchase up to Aug. 1,

10 cents

Co, will act

Canyon-Boulder Dam Tours, Inc., Boulder

H'yv/Y

Sept. 3 filed 636,500 shares ($5 par) capital stock, Underwriting—There will be no underwriting but Everett N.
Crosby, President? and Jamqs ManoilpTreasurer, will act
as selling agents. Offering-r-Of jthe total 500,000
shares
will be offered to the public and the remaining 136,500
shares will be reserved for issuance partly in payment

are

185,000 shares of common stock ($2 par).
being sold by certain stockholders.
Stock

...

indebtedness. Partly as a commission to the selling

Aug. 28 (letter of notification) 300,000 shares ($1 par)
Of the total, 85,590 shares are to be exchanged

overriding royalty interests in leases and fee prop¬
erties formerly operated by R. E. Leyendecker, Inc., and

for

operations to be carried on by the issuer. The balance,
214,410 shares, will be offered publicly at $1 a share.
Underwriter—Leven Brothers, New York.
Proceeds—
For direct corporate purposes.

Ready Built Homes, Inc., Rockford, III.

Greens

(9/24)

(letter of notification) 27,000 shares 60 cent
cumulative convertible preferred stock (par $10) and
Sept.

Price, $10 per share for
share for common. Underwriter

Illinois

Power Co.,

competitive bidding. Probable bid¬
Blyth & Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and W. E.
Hutton & Co. (jointly). Proceeds—Net proceeds from the
sale of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re¬
demption of 5% cumulative convertible preferred stock
not converted into common prior to the redemption
include

date.

The

balance

will

Griggs, Cooper & Co., St. Paul, Minn.
Sept. 3

(letter of notification)

common.

Price—$25

12,000 shares ($l- par)

Underwriters—Kalman & Co., Inc., St. Paul.
a

share.

Proceeds

modernization program.
Grolier Society,

—

For improvement and

cumulative preferred

($100 par), with non-detachable common stock
purchase warrants entitling registered holders of shares
of the $4.25 preferred to purchase at any time 64,750
shares of common stock at $16 a share at the ratio of 3%
common shares for each preferred share held; and 120,000 shares of $1 par common stock.
Underwriters—H.
M.

Byllesby and

•

Insurance

Co., Inc.

Offering—Underwriters to

purchase from the company1 18,500 shares of preferred
and 20,000 shares of common; and from Fred P. Murphy

treasury funds.

■Y/v/

•' )

•

Kaiser Co., Burlington, N. C.

Noyes & Co. Price—By amendment. Proceeds-YNet pro¬
ceeds go to 11 shareholders who are selling'the stock
being registered.
Business—Manufacture of women's
hosiery.: ,Y
• /'"//
/;
•••'• Y-.'' •■•:/..'
/

Mercury Messenger Corp., New York, N. Y.

Aug, 28 (letter of notification) 93,000 shares of capital
common
stock (par 20c).
No underwriting.
Price—
$2.70 a share. Proceeds will go to expansion of issuer's
business.'.-. Y'-.-*
Y. Y/ /■.
Mica Mountain

Mines, Inc.,

Salt Lake City

Sept. 11 (letter of notification) 171,000 shares of common
for

company, and 22,937 shares to be
alternative for an oversale of offering

reoffered in the

covered by letter
of notification filed Jan. 2, 1946. Offering price, 171,000
shares
25 cents each; 22,937 shares -— 20 cents each.
Underwriting, for the 171,000 shares only—Howard R.
Clinger and O. M. Lyman, both of Salt Lake City. To
finance operations until production returns begin.
—

Michigan Gas & Elec. Co., Ashland, Wis.
June 24 filed $3,500,000 of series A
due 1976; 14,000 shares ($100 par)

first mortgage bonds^,

cumulative preferred

120,000 shares ($10 par) common stock. Un¬
derwriters—To be determined by competitive biddine.

Securities

Inc.,

Oakland, Calif.

Sept. 16 filed 3,280 units of $1,000 each single payment
plan, series T, and 5,600 units of $1,200 each accumu¬
lative plan, Series D, and such indeterminate amount of
investment units as may be necessary to service the
agreements. Underwriter—Raymond H. Miller will act
as

sales agent.

ment.

stock

added

par) capital stock
through competitive

stock and

Inc., New York

July 29 filed 18,500 shares at $4.25

($10

determined

Probable

/ May McEwen

•

Underwriters—By

ders

11,900 shares of common stock.

preferred and $2.50 per
—R. H. Johnson & Co., New York and Shillinglaw,
Bolger & Co., Chicago. Proceeds for working capital, etc.

Decatur, III.

June 17, filed 200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.

Co., Preque Isle, Me.

bidders include The First Boston
& Co., and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co; Coffin & Burr and
Merrill Lynch, Pierce, Fenner & Beane. Proceeds—The
shares are being sold by Consolidated Electric and Gas
Co., parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
bidding.

agents and partly on

common.

150,000

Aug. 22 filed 175,418 shares ($1 par) common stock.
Underwriters—Goldman, Sachs & Co., and Hemphill,

(Henry)' & Co., Inc., New York

filed

•

Corp.; Kidder, Peabody

June 28,1946 filed 20,000 shares of 4Vz% ($25 par) cumu¬
lative convertible preferred
stock and 33,884 shares

general funds.

Holding Company Act.

amendment.':-:■/:/ ■/;/'••.:■;■';Y'• ■;''vYY//•; Y;./.-

Underwriters—To

$5,20 a preferred share and
Underwriter—Henry C. Rob¬
selling agent. :^
"l ■"■;;

Grand Valley Oil Corp., New York

$75,000, will be used in operation of the
Business—Exploring and developing gold

Maine Public Service
June

($1 par) common stock, Undrewriters—Otis & Co., Cleve¬
exercise of options. Price—$5 a / land, Ohio. Offering—Company is selling the preferred
shares and stockholders are selling the common shares.
share. Proceeds—For refinancing of company and for
Price—$25 a share of preferred. Price for the common
working capital and funds for development and construc¬
tion program.•:"//Y Y by amendment. Proceeds—Net proceeds- will be added;
of

mining properties.

acquired by selling stockholders in exchange for 432,000
shares of common stock (par $3) of American Engineer¬
ing Co. Underwriter—By amendment. Offering—Price by

Holt

Ltd., Toronto

filed

company.

Hayes Manufacturing Corp., Gr. Rapids, Mich.
Shares

estimated

Feb. 27 filed

Minneapolis, Minn.

250,000 shares of capital stock (par 40c).
Underwriters^— Names to be supplied by amendment.
Offering—Stock will be offered publicly in the U. S. at
40c a
share
(Canadian money).
Proceeds—Proceeds,

10 cents

1949, common stock of the company at $11 a share. Price
by amendment. ....
Y'.
V..Y
Y;.-Y.

Co.,

Mada Yellowknife Gold Mines,

June

share.

common

(E. J.)

(letter of notification) 400 shares of $100 par
preferred. Offering price, $100 a share. No underwriting.
To increase working capital.

price,

Offering

common.

Longyear

Sept. 12

Hartford, Conn.

Treating Corp.,

temporary quarters in New York, for furniture
equipment and other corporate purposes.

and fixtures,

(letter of notification) 14,000 shares ($5 par)
cumulative preferred and 42,000 shares (100 par)

Liquid Conditioning Corp. of New York

; Y

July 3 filed 70,600 shares ($10 par) class A common
stock.
Underwriters—No underwriting. Offering—Price,
$10 a share.
Proceeds—Proceeds will be used to pay

Sept.

June

stock.

Glen Industries Inc., Milwaukee, Wis.
Hartfield Stores, Inc., Los Angeles
July 31 filed 50,000 shares of $1.25 cumulative converti¬
June 27 filed 100,000 shares
($1 par) common stock.
ble preferred stock series A ($20 par) and 150,000 shares
Underwriters—Van Alstyne, Noel & Co., New York, and
(10c par) common, all issued and outstanding and being
Johnston, Lemon & Co., Washington, D. C.
Offering—
sold by eight selling stockholders.
Underwriters—Van
To be offered to the public at $8 a share.
Proceeds—
Alstyne Noel & Co.
Price by amendment. Proceeds—
Company is selling 60,000 shares and stockholders are
To selling
stockholders.
Business—Manufacturers of
selling 40,000 shares.
The company will use its proceeds
junior miss wearing apparel.
/
Yr to pay the costs of opening additional stores and to ex¬
pand merchandise in its existing stores.
Glensder Textile Corp., New York

Alstyne, Noel & Co.
Offering—The 300,000 shares are
issued and outstanding and being sold for the account
of certain stockholders.
Company has also issued 55,000 ■>

....

6% cumulative preferred stock at an
estimated - cost of $213,258, exclusive of accrued divi-.
dendfc.
It. also will use approximately $402,000 toward
the purchase of a manufacturing plant in Chicago; bal¬
ance
for working capital. Offering temporarily post¬
poned...
7
y
•. .//Y:
outstanding

tional storage

Aug. 28 filed 355,000 shares ($l,par) common, of which
,55,000 shares are reserved for issuance upon the exer¬
cise of stock purchase warrants.
Underwriter — Van

Offering—Price $2.50 a share.
Proceeds
enable issuer to produce its prod¬

Co., Detroit.

shares ($1 par) common.
Under¬
writer: Paul H. Davies & Co., Chicago.
Price by amend¬
ment.
Proceeds—Net proceeds will be used to redeem
its

Products, Inc., Jackson, Mich. /

Aug. 27 (letter of notification) 100,000 shares ($1 par)'
common for benefit of issuer.
Underwriter—Keane &

Aug. 8 filed 80,000

Foods, Inc., Columbia, S. C. Y

'//'■/// City, Nev.

Co.

Parchment

Vegetable

to retire

—For

Grand

(Mich.)

Proceeds—Proceeds, estimated at $1,500,000, will be used
a $500,000 short-term bank loan, to make loans
to The KVP Co. Ltd., a subsidiary, and to increase work¬
ing capital. Business—Converter of paper products.

Co., Jacksonville, Fla.

their preemptive rights.

Aug. 30 filed 450,000 shares (100 par) common. Under¬
writer—Newkirk & Banks, Inc. Offering—Of the total "
company is selling 350,000 shares and two stockholders,
Roland E. Fulmer and Louis H. Newkirk, Jr., are selling

stock

Underwriter—Interselling. Proceeds go

cents a share.
do its own

will

selling stockholder.

Kalamazoo

Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬
of

Fresh Dry

fered to

Co., Inc., N. Y.

Aug. 6 filed 100,000 shares ($1 par) capital stock.
Un- •
derwriter—Van Alstyne, Noel & Co., New York.
Price
by amendment. Proceeds—The shares are issued and
outstanding and are being sold by Ivens Sherr, President
and A. I. Sherr, Executive Vice-President, who will re¬
ceive proceeds.
>
•

price,

(10 par)

888,500 shares

behalf of Inter-Mountain Shares, Inc.

Sept. 3 filed 100,000 shares ($10 par) common stock.
Underwriting — No underwriting.
Offering — For sub¬
scription to common stockholders in the ratio of one
share for each five shares held.
Price—$15 a share.

Fownes

stock

Offering
to the

Co., Colorado Springs, Colo.

(letter of notification)

common

Gubby Mines, Ltd., Montreal, Canada

$1,060,950 for redemption of class A preferred; balance
for expansion, working capital, etc. Dividend rate and
,

Sept.. 5

May 31 filed 500,000 shares of common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto.
Offer¬
ing—Shares will be offered to public at 75 cents a share.
Proceeds—Net proceeds, estimated at $300,000, will be
used for mining operations.
Business—Exploring for
ore.
' Y.
'

July 29 filed 100,000 shares of $1.25 cumulative con¬
vertible preferred stock (par $25). Underwriter—Blyth
& Co., Inc. Offering—Underwriters are making exchange
offer to holders of Class A preferred on share for share

price by amendment.,

common.

Mountain

Foster & Kleiser Co., San Francisco

basis plus a cash-adjustment.

Joe Dandy Mining

and J. C.

'June

1491

THE COMMERCIAL & FINANCIAL" CHRONICLE

Number 4526

Price—At market. Proceeds—For invest¬

Business—Investment house.

International Dress

Co., Inc., New York

Proceeds—Selling stockholders will receive proceeds.

Manufacturing Co., Chicago

July 24 filed 148,176 shares ($1 par) common stock. .Un¬

$8.87y2 fa
two

share.

stockholders.

Q'Connor

Co.,

1 Proceeds-!—Shares

Chicago.

Price,

sold' by
Offering temporarily postponed.
are

being

Harris, Hall & Ca.

(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co.
Offering—New preferred will be offered
on a
share for share exchange basis to holders of its
7% prior lien, $6 no-par prior lien, 6%
preferred and $6 (no par) preferred.
Of the common

outstanding

shares.
Stuart

Inc., New York, is selling 22,774 shares.
Proceeds
—Michigan will use net proceeds from bonds to redeem
$3,500,000 3%% series A first mortgage bonds, due 1972,
at 106.75 and interest.
Net proceeds from sale of com¬
mon and from shares of new preferred not issued in ex¬
& Co.

Aug. 28 filed 140,000 shares of common stock (par $1).
Offering—Price $10 per share.

derwriter— Doyle,

& Co., Inc.; Kidder, Pea-

body & Co.; The First Boston Corp.;

stock being registered, company is selling 40,000
Middle West is selling 57,226 shares and Halsey,

Underwriter—Otis & Co.

Jensen

Probable bidders include Blylh

change will be used to redeem $375,000 3Vz%
bentures, due 1951, at 101.2 and interest.
It
redeem

105 and accrued

shares of-prior lien
-.

and preferred stocks.

(Continued

serial de¬
also will

dividends all unexchanged

on page

1492)

»• •

-• ?

was«rtwwwawiN>i^witii»»iMfciiaiwrow»wMMiw»w»^^

Thursday, September -19, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

1492

Co., Inc. (jointly).

(Continued from page 1491)

Of the shares registered, 182,667 are

being sold by Midland Realization Co.; 54,426

Michigan Steel Casting Co., Detroit

land Utilities

27 filed 100,000 shares ($1 par) common stock.
XJnderwriters—Cray, McFawn & Co., Detroit. Offering—
To be offered publicly at $8.25 a share. Proceeds—Pur¬
chase additional facilities, expansion, etc. Offering in¬
June

definitely postponed.

Northwestern

Public Service Co., Huron, S. D.

Peninsular Oil Corp.,

26,000 shares ($100 par) cumulative preferred stock,
110,000 shares of $3 par common.
Underwriters—

common (par, $1). Under¬
Hughes, Ltd., Toronto, Canada. Price—
Proceeds—Net proceeds will be used to*
purchase drilling machinery
and other
equipment..'
Business—Exploring for natural oil and gas in the Pe- >
ninsula of Gaspe, Province of Quebec, Canada.

writer— Sabiston

60 cents

bidders include Halsey,

Mississippi fire, Casualty & Surety Corp.

($10 par)

stock, offering price $20 a share. Underwriter—
Clany M. Seay, Jackson, Miss, will undertake to obtain
signatures authorizing subscriptions for the stock to
create capital and surplus for operation of business.
common

•

share.

Penn Utah Mining Co., Beaver; Utah;

Sept.

Company is to be organized in Mississippi.

Ltd., Montreal, Canada

Sept. 3 filed 600,000 shares of

competitive bidding.
Probable
Stuart & Co. Inc. (bonds); Har¬
riman Ripley & Co., Inc.; Lee Higginson Corp.; A. G.
Becker & Co., Inc., Salomon Brothers & Hutzler, Dick
Merle-Smith, Drexel & Co., Harris Hall & Co. (Inc.)
and Stroud & Co., (jointly); Offering—Securities will be
sold at competitive bidding. Proceeds—Refunding.
determined

Airpark Corp.* Malvern, Pa.

For organization of airport business.

derwriting.

arid

Paoli-Malvern

Sept. 13 (letter of notification) 100,000 shares of $1 par
Class A common. Offering—Price $3 a share.
No; un-,,

$5,275,000 first mortgage bonds, due 1976;

June 28 filed

August 19 (letter of notification) 14,000 shares

•

by Mid¬

Co., and 146,923 by Middle West Corp.

(letter of notification)

($10 par).

5,472 shares

Ybrk
.:.,J^common. Offering—Price $10 a share, <No underwriting.
shares^ ($1 par) TCfinhp. IrMrnAtt':
common stock.
king capital; payment of ^mortgage installments
Hflnn
flTIn

Nugent's National Stores, Inc., New

June

Morrison-Knudsen Co., Inc., Boise, Idaho

July 22
shares
ferred.

& Co.,

Inc., and Wegener

Daly, Inc.
Proceeds^-Selling stockholders are of¬
fering 149,550 shares of the common and will receive

proceeds from these shares.
The company's proceeds,
together with funds to be provided from the sale of
$2,000,000 of 3 V?% debentures, due 1961, will be used to
! retire its certificates of indebtedness, outstanding pre¬
ferred stock and a portion of its bank loans. It also will
use the funds for investment in preferred stocks of sub¬

Pripe—Preferred, $50 per share; common,

sidiaries.
per

$16
<■'

share.
Mountain

85,000

Underwriters—Newburger & Hano, and Kobbe,

filed 249,550 shares ($10 par) common and 70,000
of ($50 par) 4%% cumulative convertible pre¬
Underwriter—Blyth

filed

TTiVrtAmx7rit.*>rc_JMAwhnrcfpr Ar

States Power Co.

RiplOy & Co.; The First Boston Corp. Offering—Shares,
are owned by
Standard Gas & Electric Co. and con¬
stitute 56.39% of the company's outstanding common.
SdlG Postponed—Standard Gas & Electric Co. asked for
bids for1 the purchase of the stock on Sept. 4, but the
sale has been temporarily postponed.

purchase 100% of the stock of two affiliates, and bal¬
ance
$197,000 for Other corporate purposes. The pro¬
ceeds from! the other 3,000 shares will go to selling
stockholders.
•

Ohio

Associated

(G. C.)

Murphy

Co., McKeesport, Pa.

Telephone

plus dividends. Indefinitely

ferred stock at $109 a share

postponed. -'"

;•

use

to redeem its $1,770,000 of

National Manufacture and Stores Corp.,

Atlanta

(letter of notification) 8,500 shares of common
stock.
Offering price, $35 a share.
Underwriters—
Clement A. Evans & Co., Inc. Proceeds—For redemp¬
tion of outstanding $2.50 class A non-cumulative stock.
June 12

Postponed indefinitely.

Newdulrgh Steel Co., Inc., Detroit
filed 30,000 shares of 6% cumulative convertible
preferred (par $10), and 30,000 common shares ($1 par).
Underwriters—O'Connell & Janareli, New York. Offer¬
AUg. 2

are

issued and outstanding and are being

Samuel Friedman, President
respectively, each selling 15,000
shares of preferred and 15,000 shares of common. Price
—$10 a share for the preferred and $6 a share for the
common. Expected late October or early November.
sold by Maurice Cohen and
and Secretary-Treasurer,

approved by the SEC, on June 24, 1946, which among
things provides for the elimination of all out¬

standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000
Price by amendement. Proceeds

shares.

—To retire outstanding securities,

3%% first

withdrawn Aug.

12.

Sale postponed indefinitely.

Northern Engraving & Mfg. Co., La Crosse,

Aug.

filed

70,000

Underwriter—Cruttenden

(letter of notification)

($2
Co.

par)

common

Wis.

behalf

Frank

stock.

Offering—All shares

holders.
Price—$16 a share. Proceeds—To
selling stockholders. Indefinitely postponed.

Northern

Indiana

Public Service Co.

maximum of 384,016 shares of common
stock, Underwriters by amendment as shares will be
offered under competitive bidding. Probable bidders in¬
clude Blyth & Co., Inc.; The First Boston Corp.; Stone
& Webster Securities Corp., and Harriman Ripley &
Aug. 28 filed

Co.

Inc., Brooklyn,

,'K;';vyv,y■;/•

Orange-Crush do Cuba, S. A., Havana, Cuba

selling 50,000 shares.

company will use its proceeds

Mich.

•

Rock

Bottling Co. of Youngstown,
Warren, O.

Aug. 16 (letter of notification) 199,000 shares (50c par) v
common and warrants for purchase of 125,000 additional
common.
Offering—Price $1.50 a common share and

July 22 filed 75,000 shares of $1.50 par common. Under¬
writer—Elder, Wheeler & Co.
Offering—Price $8 a
share.
Proceeds—Of the total company is selling 25,000

Red

inked ribbons and related products.

shares and stockholders are

Arbor,

plant, and the balance wall be deposited with gen¬

eral funds.

filed 140,900 shares ($5 par) common. The
shares are being sold by three stockholders. Underwriter
—The First Boston Corp., New York. Price—By amend¬
ment. Business—Manufacture of record Hectograph car¬
19

bon papers,

of Ann

baler

Treasurer of the company.

n. v.

Co.

5% cumulative convertible
Underwriter—Van Alstyne,"
Noel & Co. and associates; Price by amendment.
Pro¬
ceeds—Of the net proceeds, $250,000 will be used to pay '
3% notes held by National Bank of Detroit, $75,000 to
reimburse treasury for sums spent in acquisition of the
electrical division plant of the company, $30,000 for con¬
struction of space for executive offices in the economy-

571,000 shares (5c par)

Old Town Ribbon & Carbon Co.

Parts

filed 75,000 shares
preferred stock ($10 par).

cent a warrant. Underwriters—Frank C. Mobre
Co., New York; and Hall, Tattersall & Co., Philadelphia.
purchase of additional ,:
equipment and for working capital.
"
; *
:a
one

For payment of plant mortgage,

The

for equipment.

Republic Foil & Metal Mills, Inc., Danbury,
Conn.

Co., Portland, Ore. July 10 filed 100,000 shares ($100 par) preferred stock.
Underwriters—By amendment. Probable bidders include
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney &
Co. (jointly); The First Boston Corp., W. C. Langley & Co.;
Harriman Ripley & Co.
Offering—Company proposes to
issue the 100,000 shares of new preferred for the pur¬
pose of refinancing at a lower dividend rate the 67,009
outstanding preferred shares of Pacific and the *47,806
preferred shares of Northern Electric Co., in connection
with the proposed merger of Northwestern into Pacific.
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged
Pacific Power & Light

v'-

6 filed $500,000 of 3V2% notes, due 1966; 2,509
of 31/4% preferred stock (par $100) and 15,000
shares of common stock (no par).
Underwriting — No ■
underwriting.
Offering—The" securities being registered
include notes, preferred and common previously sold to :
private subscribers for an aggregate price of $464,384.:
The company is offering to repurchase these securities
with interest and reoffer them to the public.
The pur¬
pose of the remission offer is because the earlier secur-;
ities were not registered with the SEC. Price—The notes
will be sold at 100, the preferred at $100 a share, and'
Sept.

the

common

will

share for share, with cash adjustments, for the new pre¬
ferred stock of Pacific, the surviving corporation. Offer¬

added

10 cents

share.

Proceeds

—

Proceeds

general corporate funds.

Republic Pictures Corp., New York

Pacific

originally filed July 31 covered 184,821
shares of $1 cumulative convertible preferred ($10 par)'
and 277,231 shares (50c par) common stock, with Sterling,.'

Telephone and Telegraph
J
^ *7.

Co.,

San

Francisco

Grace & Co. as underwriters.

Sept. 6 filed $75,000,000 of 40-year debentures, due 1986.
Underwriters—By competitive bidding. Probable bidders
include Morgan, Stanley &

Co., Blyth & Co., Inc.,

the

registration stated.
Pal

Blade Co.,

par) capital stock.
Inc.
Offering —
225,000 shares are outstanding and are being sold by 10 ,
stockholders, and 2,500 shares are being £old by A. L.
Marlman to all salaried employees. Indefinitely post¬
poned.
'
..1
_

Corp., Washington,

D. C.

16 filed 4,000,000 shares (100 par) preference
stock. Underwriting—Tellier & Co., New York. Price
50 cents a share. Proceeds—The company will use esti¬

August

for purchase of a hew
factory near Punta Gorda, Florida, at a cost of about
$951,928. It will set aside $150,000 for research and de¬
velopment purposes and the balance will be used as

mated net proceeds of $1,473,000

operating capital.

„

5 to the extent of one share for each five held. Issue -yvill
not

underwritten.

Reynolds Pen Co., Chicago
May 4 filed 400,000 shares of common stock

(no par),

of which 100,000 Shares are being sold by company and

300,000

stockholders.

amendment.
—Net

June 28, 1946 filed 227,500 shares ($1
Underwriters — F. Eberstadt & Co.,

Palmetto Fibre

454,465 shares of common stock only, which will be
offered for subscription to stockholders of record Sept."

Underwriters—Names

Offering—Terms by amendment. Proceeds

proceeds to the company will be added to working-

capital.

Inc., New York

Company has decided to:

issue

Halsey

Co., Inc. Proceeds—Net proceeds will be used
to reimburse its treasury for previous expenditures for
extensions and improvements to its plant and plants of
subsidiaries. Remaining proceeds will be used to repay
outstanding advances from American Telephone & Tele¬
graph Co., parent, which are expected to nearly equal the
amount of the proceeds from the sale of the debentures,
Stuart &

issued and outstanding and being sold for the account

of present

Transit

July

Myers, President and
Offering—Price at market.
Underwriting—Inter-Mountain Shares, Inc.; Proceeds—
Go to the selling stockholder.
common

are

purchase

bank loans, and other corporate purposes. '
(Ore.)

Precision

Colo.

aggregating $34,998,-

Bids for the purchase of the bonds and the common
stock which were to be received by the company Aug. 13

500.

were

Proceeds—

Registration

other

new common

$1,250,000 4% convertible debentures due
June 1, 1966, and 200,000 shares of common stock (par
$1); also an additional 128,750 common shares for con¬
version of debentures. Underwriters—First California Co.;,
Scherck, Richter & Co.; Weeden & Co.; Allen & Co.,^and
Rauscher, Pierce & Co. Proceeds—To complete payment
of purchase price for the capital stock of Portland Trac ¬
tion Co. and the properties of the Interurban Railway
Division of Portland Electric Power Co., working capital,
etc. Offering price of debentures $105; price of common
to public, $8.25 per share.
■

England Gas and Electric Association

Jfuly 11 filed $22,500,000 20-year collateral trust sinking
fund Series A bonds, and a maximum of 1,568,980 com¬
mon
shares ($5 par);
Underwriters—By amendment.
Bidders may include Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody & Co. (jointly).
Offering—Bonds and common stock are being offered in
connection with a
compromise recapitalization plan

pay

Portland

ing price—To be supplied by amendment.
New

Sept.

4y2% cumulative preferred
stock ($100 par), 250,000 shares of common stock ($1"
par) and warrants for 28,960 common shares (attached
to preferred stock).
Underwriters—Stone & Webster
Securities Corp., and Bosworth, Chanute, Loughridge &
Co. Price by amendment.
Proceeds—Shares are out¬
standing and are being sold by stockholders. Tempora¬
rily postponed.

June 14 filed

$937,518.in letirement of its 6% cumulative preferred
owned by General and to reimburse its treasury for
funds previously expended.
; =
;
:

Dehydrating & Milling Co.,

June 28 filed 28,960 shares of

ing—Shares

bonds, 2%%

•

Lamar, Colo.

;

equipment,

mortgage bonds, due 1970, at 107V2%; to repay $1,450,000 in bank loans; to pay
General Telephone Corp.

•.

Alfalfa

National

Marion, O.

Co.,

being sold by the company and the remaining

will be

New York

a share; common, $4 a share.
Proceeds from sale of preferred will be used to

Offering—Of the preferred being registered, 21,-

Aug. 5

250,000 shares of common stock (par $1).
Underwriter—Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬

14,000 are being sold by General Telephone Corp. Price
—By amendment. Proceeds—Net proceeds to the com-;
pany

VrvV ";

^Preferred, $10

Sept. ,11 filed $3,250,000 of first mortgage

are

Molded ArtSr Inc.,

Aug. 27 filed 60,000 shares of preferred.stock ($10 par)'
and 75,000 shares of common (par 50c). \ Underwriter—
Herrick, Waddell & Co., Inc.
Offering—Company is
offering the preferred stock to the public, while the,
common is being sold by certain stockholders.
Prices—

series, due 1976; and 35,000 shares (no par) $2 cumulative
preferred. Underwriters — Paine, Webber, Jackson &
Curtis and Stone & Webster Securities, both of New
000

Plastic

Oklahoma Oil Co., Denver,
June 13 filed

and 0thi6r expenSCS

Co., Inc.

York.

140,614 shares of common stock (no par).
Underwriters—To be determined by competitive bidding.
Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb
& Co. and Smith Barney & Co. (jointly); Harriman,
June 6 filed

Gearhart

Price, $6.75 a share.
Proceeds—Net pro¬
ceeds to the company from 62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred stock; $41,649 to'
&

Rheem Manufacturing Co.

26,1946 filed 200,000 shares ($1 par) common stock.
Underwriters—Blyth & Co., Inc. Offering—Company
will sell 130,000 shares to the public through the Under¬
writers and 70,000 shares to Bethlehem Steel Co.* PriceBy amendment. Proceeds—Working capital, Temporal
rily postponed.

June

Rowe

Corp., New York

i00,000 shares common stock. Underwriters i
—Hayden, Stone & Co. Offering—The selling stockhold¬
ers, who include Robert Z. Greene/President, are offer¬
ing the shares to the public through the underwriters,

July 29 filed

for their own accounts

indefinite.

Price, by amendment

Offering

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4526

Volume 164

Southwestern Public Service

San-Nap-Pak Mfg. Co. Inc., New York

July 24 filed 80,000 shares ($1 par) common stock. Underwriters—Dunne & Co., New York.
Offering—Price

Halsey,
amend¬
proceeds, with other funds, will
be used to redeem $17,500,000 of 3%% first mortgage
bonds, due 1974, at 106y8%, and to purchase the electric,
water and ice properties of West Texas Utilities Co.
located in the northwestern portion of the Texas Panhandle for $2,135,000. 7 /
> V7"' 777'
;

director, and Harry Preston, board Chairman, Secretary
and Treasurer, will receive net proceeds as selling stock-

holders^1;H;l'\;"''
Sardik Food Products Corp.,

New York 7

/May 29 filed 175,000 shares of capital stock (no par).
Underwriter—George F. Breen, New York. Offering—
: Stock will be offered to public at $14 a share. Of the -ft

28 filed

18,000

shares of the issued and outstanding
by them. They are also selling to Hallgarten & Co., for $1,500, plus $360 as a contribution
toward the expenses of issuance, options to purchase an
additional 18,000 shares of the issued and outstanding
owned

common

Proceeds—Net proceeds for the

common.

shares (par lc) common stock.;
amendment.
Proceeds—To repay RFC
loan, to buy Canton Mills, Inc. and for working capital.
Price by amendment.
7 7
•
7-';'
-

Aug.

375,000

tion and Television fields at

(9/23)

Co.

Scovill Manufacturing

Standard Brands,

Aug. 15 filed 149,548 shares ($25 par) common
Underwriters—Morgan Stanley & Co., New York.

Inc., New York

Sept. 6 filed 220,000 shares

Upper Michigan Power & Light Co., Escanaba,
Mich.

July 18 (letter of notification) 5,500 shares of 4%% first
preferred stock series B ($50 par). Offering price, $50
a share.
Underwriter—First of Michigan Corp., Detroit.
Proceeds—For enlargements and improvements of power
plant facilities.
; 7::

—

preferred $10.75 per share; price of com*

Price of

State

$5,625 per share. Proceeds—Company is selling
the 25,000 shares of preferred to the underwriters at
$10 a share and stockholders are selling 244,000 shares
to the underwriters at $5 a share.
The registration ;
stated that 24,000 of the 244,000 shares of common are
being reserved for a period of four days following the
effective date of the registration for sale to employees,
officers and directors at $5 a share. .The company also-;:

mon;

;

Street

Exchange, Boston, Mass.

July 1, 1946 filed $1,750,000 second mortgage 4%
cumulative

income

non-

1961. UnderwritersRoger W. Babson, Wellesley Hills, Mass., and Charles F.
Ayer.
Offering — Company will issue $750,000 of the
bonds,

Velvet

due

for the account of certain stockholders.

company's real estate and the remaining $1,000,000 of the bonds will be offered to the company's
stockholders in the ratio of

one

bond for each unit of

200,000 stock purchase warrants to executives
3% shares of stock held.
Unsubscribed shares will be
of the company at 50 cents a warrant.
Company will
sold to underwriters.
Price to stockholders$27.50 a
use its proceeds for general corporate purposes.
Offering ; share and price to underwriters $26.50 a share. Proceeds

:v^^V/V

date indefinite.
^

A®i/W:

'
"*■»■/

"i*

„

Seaboard Finance Co.,

}

<„

•>;

Washington, D. C.

Aug. 29 filed 240,000 shares of common stock (par $1).
Underwriters—Van Alstyne, Noel & Co., and Johnston,
Lemon & Co.
Offering—Certain stockholders are sell-

company's 100,000 shares proceeds will be used
reduce outstanding bank loans and commercial paper

corporate purposes.

and for. other

finance business.

the

whom any underwriter may be included, at the
public offering price, less certain concessions. Price $10

among

Business—Personal

Stern & Stern

Wilmington,

Seaboard & Western Airlines Inc.,

Pel.

•

.•

Sherman Industrial Foundation;

holders

;77;7

mon

par.7 77 7/7/77, :y§:7;

Aug. 28 filed 102,759 shares common stock (par $5).i
Underwriter—Goldman, Sachs & Co.
Offering—Eight

r'. Commerce have agreed to take the stock for the pur-

pose

ment fund. For purchase of industrial

;

buildings for purpose of attracting additional industries
to Sherman.
;
/
; V "

sites and build /

Silica Products Co.

'.
:

Sept. 9 (letter of cnotification) 300 shares ($100 par)
capital stock. Offering price, $100 a share. Underwriting
—The shares will be sold through agents. For develop¬
ment

represents a
holders. Indefinitely postponed.

Inc., Tacoma, Wash.

and

production

agricultural

lime, feldspar, and silica.- '
-

- '

•'

•

Swern

Price by amendment. /•

facilities in the amount of $600,000; for additional inven-

& Co.,

Trenton, N. J.

shares common
Underwriter—C. K. Pistell & Co., Inc.
Aug.

filed

195,000

initially.

■;;7\'V;'v 7--;'Z

:;"7' ' -7

Tampa Electric Co., Tampa, Fla.

•

7 7'

con-

note to

preferred share for each five shares of

one

unsubscribed shares will be sold to underwriters at

price.

Price

—

Public offering price

common

shares by amendment. Proceeds—For expansion of plant,',

;

v/7l

■'./■• 7-

changed to Nashua Manufacturing

V7'\ 7,;'

* *

Co.

prior to

Taylor-Graves,

—Amos Treat &

Co.

a share for common. Underwriter
Proceeds—For payment of notes,

mortgages and for general corporate purposes.

Underwriting,

Western

Inc., Saybrook, Conn.

preferred and .75 cents

Co., Venice, Calif.

the

company

Tin

and officers. For
petroleum gas.

Mining Corp., Washington,

August 16 filed 315,185 shares

(one cent par)

stock. Underwriter—No underwriting.

July 12 (letter of notification) 44,300 shares of ($5 par)
cumulative convertible preferred stock and 44,300 shares
common stock (par 50c).
Offering—Price $6 a share for

held
same

of unsubscribed

facilities and for additional working capital,

share.

and to finance construction program.

share in the ratio of

further drilling operations to develop

Equitable Life Assurance Society of the U. S.,

Inc., Chicago. Offering—To be offered to common stock-1
subscription at $25

■....

share of preferred and one-half share of convertible.

Western Crude Oil

Aug. 27 filed $7,500,000 first mortgage bonds, series due
1976.
Underwriter—Goldman, Sachs & Co.
Price by
amendment.
Proceeds—To prepay a 2%% promissory

vertible preferred. Underwriter—Ames, Emerich & Co.,

holders for

-r.Vv..''

-7-

Sept. 4 (letter of notification) 250,000 shares of coipmon
on behalf of the company and
100,000 shares on behalf
of Henry L. Rath, President. Offering price, 10 cents a

(9/25)'

Manufacturing Co., Detroit, Mich.

Sept 3 filed 40,000 shares ($25 par) 5% cumulative

new company. Net proceeds, together with $2,300,000
representing the proceeds from the sale of 50,000 shares
of convertible stock to the underwriters and 525,000
shares of convertible stock to Textron, Inc., at $4 a share,
will be used as follows:
approximately $13,000,000 for
payment of a portion of the purchase price of the assets
to be acquired from the old company, about $100,000 for
organization expenses, and about $1,100,000 for working
capital.

tory amounting to $400,000, and for additional working
;

■7':* !•«.*•

the

,«

Soss

effective date of registration) was incorporated June 27,
1946 to acquire the operating properties and certain

stock (par $1).
Offering—Com¬
tion pf outstanding series A convertible preferred stock J pany is selling 45,000 shares, and eight selling stock¬
holders are disposing of the remaining 150,000 shares.
7' which are not converted into common stock.
Such proPrice—$10.50 a share.
Proceeds—From 45,000 shares
ceeds-also will be used for additional manufacturing
sold by company wi\l be applied to working capital

capital.

will

Price by amendment. Proceeds—Weetamoe Corp. (Name

\vorking capital, purchase of machinery and

equipment.

Proceeds—Net proceeds will be applied for the redemp-

balance

Weetamoe Corp., Nashua, N. H. 7;7;

one

The

ferred and convertible stocks will be offered in units of

•

ceeds—For

Solar Manufacturing Corp.

of $1.12% cumulative con¬
vertible preferred stock, series A (par $20).
Under¬

dividends.

Sun Electric Corp. of Chicago
other assets of Nashua Manufacturing Co. which was
Aug. 28 filed 7,000 shares (par $100) 6% preferred stock.
incorporated in 1823. The new company was organized
Underwriter, none.
Stock will be sold by company's
at the instance of Textron, Inc., and is wholly-owned
officers to employees and business acquaintances. Pro-7
subsidiary, Textron Mills, Inc., which are promoters of

June 14 filed 80,000 shares

writers—Van Alstyne, Noel & Co.

■

commercial

and

•..

accrued

July 15 filed 200,000 shares ($25 par) $1.20 cumulative
pfd. stock, 100,000 shares of ($1 par) convertible stock
and 650,000 shares ($1 par) common stock. Underwriters
—Blair & Co., Inc., Reynolds & Co., New York and Max¬
well, Marshall & Co., Los Angeles. Offering—The pre¬

Under¬
offering
part of the holdings of the present stock- '

and

/.'>"• 7; /v-v;' :V

;

/■.*7'

July 17 filed 197,500 Shares of common stock.
writers—Glore, Forgan & Co.
Offering—The

•

proceeds from the sale of the company's
its "building construction and;

Street & Smith Publications, Inc..

added to general corporate funds.;,

will be added to

improvement fund." •

of establishing a post-war planning and develop-

will

preference stock at $110 a share and accrued dividends,
and 1,386 shares of second preference stock at $100 a

Stix, Baer & Fuller C6.* St. LbuiS
f

Sherman Chamber of

of the

Members

brokers.

Son,

and

by shareholders.
The respective
supplied by amendment.
Price by
amendment.
Proceeds—Company will use about $210>000 of its net proceeds to redeem 645 shares of its prior
company

amounts

Sept. 6 (letter of notification) preorganization subscripselling stockholders are disposing of 62,000 shares, and
tions aggregating $105,000 which will be surrendered in
the company will offer 40,759 shares initially to its pre¬
exchange for 2,100 shares (par $50 each),-of common.
ferred and common stockholders.
Price by amendmentOffering price; $50 each. Underwriting, Colwick and; Proceeds—Net

the

■

shares by the company will be used to
reimburse treasury for funds spent on June 26 to retire

■' '//7..7.;;

Sept. 3 filed an unspecified number of shares of com¬
stock (par $1).
Underwriting—Loewi & Co., Mil¬
waukee.
Offering—The shares are being sold both by

5,000 shares of preferred stock, $100

■

7 /Webster Electric Co., Racine, Wis.

the sale of 51,000

Inc., Sherman,

Textiles, Inc., New York

are

shares.

share.^ Proceeds—It is presently anticipated that

$437,500 will be used to acquire the capital stock of Wil¬
liams Stores, Inc., and Levitt Millinery Co.
The bal¬
ance
will be applied to general corporate purposes.
Issue temporarily postponed.

offering 51,000 shares and selling stock¬
disposing of 140,000 issued and outstanding
Price by amendment.
Proceeds—Proceeds from

Company

v-Sept. 16 (letter .of notification) .100,000 shares ($1 par);
common.
Offering price, $1 a share. No underwriting.'
♦'
For purchase of surplus aircraft from War Assets Administration by a group of present and prospective'
y- veterans, to
equip. and operate passenger • and Cargo
air service.

will

Aug. 29 filed 191,000 shares of common stock ($1 par).
Underwriter—Carl M. Loeb, Rhoades & Co.
Offering—

•

•Vv

corporate pulses.

per

available for general
For details see issue of April 4; 7

and

funds

general

.-v.'.. '•

,-7

Offering—Underwriters propose to offer the shares in
part to the public and the balance to certain dealers,

Steep Rock Iron Mines Ltd., Ontario

—From

■

July 3 filed 90,000 shares of 5% cumulative convertible
preferred stock, ($10 par).
Underwriters—Newburger
& Hano; Kobbe, Gearhart & Co., Inc., and D. Gleich Co.

—Company will pay $225,000 to the two banks holding
its mortgages and the balance will be retained for neces¬
sary repairs to its real estate.
* "
1

March 27 filed 500,000 shares of capital stock (par $l)i
ing 140,000 issued and outstanding shares.
Company is
Underwriters—Otis & Co.
Offering—Price to public by
offering 100,000 shares; Price by amendment. Proceeds amendment.
Proceeds—Net proceeds will be added to

7
'

Virginia Dare Stores Corp., N. Y.

to be sold

are

Underwriters—

Sherck, Richter & Co., and Straus & Blosser. Offering—
Of the total, 200,000 shares will be sold through the
underwriting group at $8.50 a share, and 3,500 shares
will be offered to certain employees at $7.50 a share,

bonds to two banks which hold two first mortgages on
all of the

Freeze, Inc.

July 24 filed 203,500 shares of stock which

is selling
i'

Cincinnati, Ohio

Aug. 25 filed 24,000 shares ($4 par) common. Under¬
writer—Benj. D. Bartlett & Co., Cincinnati. OfferingShares will be offered to the public by seven stock¬
holders, who will receive the entire net proceeds.
Price by amendment. Offering date indefinite.

> lanta.

advantageous time.

United States Shoe Corp.,

(no par)

cumulative pre¬
ferred stock.
Underwriters—Dillon, Read & Co. Inc.
?
and Blyth & Co.
Offering — Offering is subject to an
offer of exchange to holders of company's 200,000 out¬
j:
,
standing shares of $4.50 cumulative preferred.
In the
:
subscribed shares will be sold to underwriters. Proceeds
event the public offering price of the new preferred is
; ?
—Company will use net proceeds to pay bank loan and'?
$100 a share, holders of the old preferred will be grant¬
to finance the purchase of additional machinery, equiped the opportunity to exchange their stock for new pre¬
7/ ment andbuiidings.:;^ii.'^/:^ fr/7
ferred at the rate of 1 l/10th shares of new preferred for
each share of old preferred.
Price — By amendment.
Scripto, Inc., Atlanta, Ga.
Proceeds
Company will use net proceeds from any
*
Aug. 7 filed 25,000 shares ($10 par) 5% cumul. converti¬
shares sold to the public to redeem all unexchanged
ble preferred stock and 244,000 shares ($1 par) common i
shares of old preferred at $110 a share;
stock. Underwriters—Clement A. Evans & Co., Inc., Ati

com¬

•

stock,
Offering—Common is offered for subscription to stockholders
of record Sept. 5 at the rate of one share for each seven
shares held at $30 per share. Rights expire Sept. 20. Un-

sale of

pany's 75,000 shares will be used for increasing working
capital, with a view to entering the Frequency Modula¬

Underwriter by

Temporarily postponed.

purchase

> Soya Corp. of America

company is selling 155,000 shares and
V the remaining 20,000 shares are being sold by two stock;
holders.
Proceeds—Working capital, purchase, equip-

7.7 total being offered

plant, etc.

the underwriters at 7 cents per option warrant options to

ment and

Proceeds—Net

ment.

Corp., New York

Aug. 1 filed 210,000 shares of common stock (par 50
cents).
Underwriters—Hirsch & Co.
Offering—Com¬
pany is offering 75,000 of the shares registered.
Eleven
stockholders are selling 135,000 issued and outstanding
shares, for their own account.
Offering—Price $6.75 a
share.
Options—Selling stockholders are also selling to

Probable bidders include Dillon, Read & Co. Inc.;
Stuart & Co. Inc., and Blyth & Co., Inc.
Price by

Proceeds—Nat E. Heit, President and

\'t by amendment.

Tele-Tone Radio

Co., Dallas, Texas

July 24 filed $20,000,000 of first mortgage bonds, series
due 1976.
Underwriters—To be supplied by amendment.

1493

public. Price—$1
work
,

Offering—To the

share. Proceeds—To do

tract of land for exploration

D. C-

common

geographical

of tin ore. Business

—Development of tin mine.
f

(Continued on page 1494)

HTDaiH

the

1494

Commercial

financial1 chronicle

Thursday, September 19, 1946

(Continued

Westinghouse Electric Corp.

<j,

White's Auto Stores, Inc.,

from':pa]gev1493)''
,

Aug.

14 filed I;647,037 shares ($12.50. par) common.
XJnderwriter—Kuhn, Loeb & Co. Offering—Stock will be
offered for -subscription to holders of outstanding pre¬

share for

ferred stock and common stock in ratio of %

each share of

Gas

Co., Lima, Ohio

top holding company

(letter of notification) 48,000 shares ($4 par)
fcommon. Offering, to common stockholders for subscrip¬
tion at $4 a share in the ratio of one share for each five
shares held. No underwriting* To be added to general
■,

dissolution of
•

tAug.

Louisville,

$400,000, together with $87,125 from the sale of 10,250

share for each two shares held.

purchase* of

contract

Wisconsin Power & Light Co.,

Madison, Wis.

May 21 filed 550,000 shares ($1,0 par) common Stock to

(letter of notification) 10,000 shares ($5 par)
rcommon, to be offered for subscription to stockholders at
$10 a share in the ratio of one share, for every five
shares held.
No underwriting.
For retirement of bank

amendment.

Toans and expansion program.

Forgari & Co., and Harriman Ripley & Co.

sold

bidding.

competitive

Probabie

bidders

Pierce, Fenner & Beane;

White, Weld

Co.;

10,995

company's 625 shares of $100

Underwriters—By

include Merrill

shares to J. William Anchell, Vice-

common

share, will be used partly for the
shares of capital stock of Island
Needlework, Inc., of Puerto Rico, out of a total of 11,000
outstanding shares. The shares will be purchased for a
total price of $220,522 from Mrs. Gertrude S. Korsh, sister
of Herbert L. Miskend, President and
Treasurer of
Yolande Corp.
Of the remaining proceeds, $68,750, plus
dividends, will be used to redeem at $110 a share the

common

Proceeds—To retire a conditional
obligation held by the Reconstruction
Finance Corp., pay off bank loans of $600,000, and for
working capital.
'
sales

Ky.*'

Mich.

Price by amendment.

Aug. 6 filed 46,400 shares (no par) common.
Under& Co.y Boston.
Price, by amendment,
proceeds—Shea & Co. is selling 26,400 shares for its own
account and the remaining 20,000 shares are being sold
; by Allen & Co., New York, with Shea as underwriter.

„

Courts & Co., Atlanta; Irving Rice & Co., St. Paul, and
Maxwell, Marshall & Co., Los Angeles and New York.
Price—$10 a share.
Proceeds—Estimated net proceeds

President, at $8.50

one

filed 50,000 shares ($1 par) common stock,
Underwriters—Headed by E. F. Gillespie & Co., and in¬
cludes Childs, Jeffries & Thorndike, Inc., New York;

additional

holders at the rate of

iVriter—Shea

Mayonnaise' Co.,

Co.

Company is initially offering the stock to its

'■

Wheatley

West Utilities

Yolande Corp., New York

Sept.

Winters & Crampton Corp., Grandville,

Virginia Water Service Co.

North

Aug. 28 filed 119,337 shares of common stock (par $1).
Underwriter—E, H. Rollins & Sons, Inc.
Offering—

West

stockholders oLNorth West Utilities Co., parent

erence

Sept. 10

.funds,

Proceeds—

West Corp.,
of the System, and part by pref¬

of Wisconsin, who elect to sell such shares of Wisconsin
common which will be distributed to them
upon thai

are

common

dividuals for their own account.

porarily postponed.
West, Ohio

The Wisconsin Co.,- and Dillon; Read & Co.
Part of the shares are to be sold by Middle

Outstanding and being sold by four in¬
Price by amendment.
Proceeds—Proceeds from the sale of the preferred stock
will be used to provide funds for a wholly-owned sub¬
sidiary, retire loans from banks and from White's Em¬
ployees Profit Sharing Trust, and for additional working
capital.

preferred held. Unsubscribed
^shares will be sold to underwriters. Price—By amend¬
ment, Proceeds-r-To reduce bank loans. Offering tem¬
common

Wichita Falls, Texas

Aug. 29 filed 75,000 shares $1 cumulative convertible
preferred stock ($20 par) and 50,000 shares common
stock "(par $1).
Underwriters—First Colony Corp. and
Childs, Jeffries & Thorndike, Inc.
Offering—Company
is offering 75,000 shares of preferred; the 50,000 shares

ferred stock.

Lynch,

The

par

balance will

cumulative pre¬

used

reimburse

the company's treasury for previous
expenditure and for

additional working capital.

Glore,

(jointly);

Business—Manufacture and

Wholesale distribution of lingerie, /

•.

„

Prospective Security Offerings
(NOT YET IN REGISTRATION)
•

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

[EDITOR'S NOTE—The strike of truckmen in New York City,
we have been obliged to

having cut off delivery of newsprint to us,

effect certain economies in today's issue in order to conserve stock
on hand. Accordingly, we are limiting our coverage of "prospective"
financing in this issue to only those undertakings which have come

omitting the items of this nature
We regret
the necessity for this action and will resume the usual complete
tabulation as early as circumstances permit.]
t 4'
to hand during the past week, thus

which

were

previously carried in our columns on Sept, 5.

•

American

Bosch

Corp.,

Springfield,

116,000 common shares expected to be offered in
units of one preferred share and two common shares
at $5.10 per unit. Underwriters will be W. H. Bell & Co.
and Henry C. Robinson & Co.

Sept. 18 the Alien Property Custodian stated that it is
expected that the 535,000 shares (77.24 %) of the stock
of the corporation held by enemy aliens will be offered
Tor sale this Fall. Probable bidders include Glore, For-

electric lines.
*

•

•
/Georgia Power Co.'
(jointly), and Blyth H
'A Co., Inc., and Merrill Lynch, Pierce, Fenner & Beane I Sept. 10 the possibility of new financing seen in connec¬
tion with company's announced new $47,000,000 elec¬
5jointly).
■
.
.
,
: ,
4
trical expansion program, bringing planned improve¬
1
•
ments to $99,000,000 to meet Georgia's growing indus-,
Ex presoAereo Inter-America no, S. A.
trial needs and to provide power for the State's farmers.
I July27 company announced agreement to acquire con¬
The new $47,000,000 program is scheduled for completion
trol of two Cuban Airlines.
Stockholders on Sept. 17
by 1949. This new expansion is in addition to the pro¬
/Voted to increase the authorized common from 1,000,000

& Co. and Lehman

'gan

■

$32,000,000 for new transmission and distribution lines
and substations, and $1,750,000 for 1,300 miles of rural

and

Mass.

*>.

•-».

tures. Traditional
•

•

Muhlebach

underwriters.

of which

Housing & Development Co.

.-Sept. 16 reported early filing by notification of 58,000
^shares of 7% cumulative sinking fund preferred (par $4)

Power

are

1 ■;

United States Government,

Commission.

The

$47,000,006 ' construction

com-

•

& Co.

State, Municipal

.and

a';'*!/

Corporate Securities

INCORPORATED

Underwriters and Distributors

Blai R 6* CO.
INC."

BUFFALO

PHILADELPHIA

•

CHICAGO

PITTSBURGH

Armistice,

land Edward S. Rogers; Chairman
of the Board of Sterling Drug,
4

Inc., have been elected members

f of the Board of Directors of the
f Commerce and Industry Associ-

ation

IJew York, it

was anSept. 4 by Thomas
Jefferson Miley, Secretary of the
nounced

graduated

Association.
ican

A pioneer of Amer¬

aviation, Mr. Trippe is the

founder and,

since its inception,

(lias been head of Pan American,.
f

left

Yale

during

the

first

World War to enlist in the Naval

the steps of his
Charles White
Trippe, an investment banker, he
served as an apprentice in the
firm of Lee, Higginson & Com¬
pany, but left to devote his time
to

small air line he had estab¬

lished in Long Island.

In 1925, he

organized Colonial Airways. Cre¬

ating Pan American Airways he

-■'"

■

(10/1)

Company is inviting bids for $1,720,000 of equipment
trust certificates dated Oct. 1,
1946, and maturing from
April 1, 1947, to Oct. 1, 1956. Bids must be received be¬

erating

over more than 90,000 air
A member of the Institute

instituted the first U.

S. interna¬

internationally

Transport Commission of the In¬
ternational

of the Aeronautical
a

Sciences, Mr.
director and the Vice

for the U. S. of the Air

Chamber

Com¬

authority,

became

trade

Chairman

Board

1941.

received

his

August,

tional Air Traffic

LL.B. degree from the University

President of the Interna¬
Association, the
directing body for international
air,
transport
throughout
the
world, and is a member of the
executive committee of the Busi¬
ness

Advisory Council for the De¬

Mr. Rogers has been serving as
of

the

Committee

the; War Ser¬

into the aerial network of vice Committee of the Commerce
and

of Michigan in 1895. He also
the

honorary

(University
LL.D.

holds

LL.M.

Michigan,

1910),

degrees

(University

Michigan,

1930) and Pharm. D. (University

partment of Commerce.

Chairman

merce;

route*between Key West Protection of Industrial Property
and Havana4ate in 1927*
wfyich has and as a m.ember ,pf

Pan American World Airways op¬

nized

as a legal
marks, fair
trade and patents, he was counsel
to
Sterling
Remedy
Company
even before its transition in 1900
into Sterling Drug, Inc., of which

miles.

tional air

grown

4;,.C\v-";VVa:v;:-

fore 12 noon E.S.T. Oct. 1. The company
stipulated that
bidders must name a price of at least 99.

I' Juan Trippe, President of the ica. Following in
| Pan American World • Airways, father, the late

California and Nevada

School, where he organized the Trippe is
first student flying club in Amer¬ Chairman

Regis Paper Co.

Wheeling & Lake Erie Ry.

Head Office: San Francisco

Returning after the

he was

probable underwriters.

St.

Co.

Offices

1920 from the Sheffield Scientific

Named Directors

Our Sixteen

Serve

CLEVELAND
ST. LOUIS

Air Service.

Trippe and Rogers

:vr

.; =.;;

new york
BOSTON

"■i't'i'r-L,

Sept. 18 stockholders approved changes in the capital
structure designed to provide funds for
financing ex¬
pansion program and increasing working capital. As an
initial step in refinancing program, directors have called
for redemption on Oct. 1 all of the company's
outstanding
5% cumulative second preferred stock. Stockholders au¬
thorized an issue of 250,000 shares of new
preferred
stock, ($100 par) to be issuable in series, as the directors
may deteripine. Probable underwriters, White, Weld &

First California Company

Indianapolis

ept: 13 repSrtecT company contemplating*somemew'fi¬
f nancing! Early registration expected with Ames • Emerich

prises $15,000,000 for four new steam generating units,

- •

Realty Co.,

cbhtingeiit upon^Eipprdval by* the Federal*r

•

A.)

(George) Brewing Co., Kansas City*

Mo J

o,»

General

(R.

liquidating trustees for the Fletcher American Na¬
tional Bank of Indianapolis will receive bids up to 10
a.m. Oct. 4 for the purchase of 1,302 shares of
Lemcke
common stock (par $100).
j

to 2,000,000 shares (par $1).
posed $45,000,000 hydro-electric project at Clark's Hill,
Probable public
offering > of over 300,000 shares with Van Alstyne Noel 4 above Augusta, on the Savannah River, and the $7,000,■

Lemcke

The

'shares

underwriters, Dillon, Read & Co., Inc.

.•

„

& Co.

Goodyear Tire & Rubber Co., Akron, Ohio

Sept. 16 reported possible refunding later this year of
outstanding $5 preferred stock ahd privately held deben¬

Brothers

Southern

California,

During

the first World

was

member

the

1938.)
War he
Patent,

enemy

alien, jpatents seized at

that time,

Mr. Rogers was Amer¬

ican

delegate to the Inter-Amer¬
Conference

Convention

Commercial

1931);
and

negotiate

Trademarks

Names

American

member

(1929

and

representative
the

Executive

Committee of the Inter-American

Commission for the Protection of
Industrial

Property

(1931-1941);

Past President of the

Committee

Industrial

•

for the

Property

Permanent

Protection of

(Paris), and

member of the National

Advisory

Trade-Mark and. Copyright Board

Council to the Committee

of the Federal Trade

ehts'pf 'the' U. S. HOusVUf Repre¬

Commission,

Industry Association. Recog¬ having to do with the disposition sentatives#.

.__.L„-

Pat-

it with $20,working capital.
This
sale, : incidentally,
will
provide a price basis for work¬
ing out disposition of Common¬
wealth
&
Southern
Corp.'s
holdings. As parent concern it
owns
all common stock now

representatives of the Czechoslo¬
vakian Ministry of Finance to ne¬

outstanding.

the

provide

stock

000,000

new

service

has

weathered

rather

equity prices

period

Telegraph
is slated to market $75,000,&

Pacific - Telephone

Co.,

speculative liens have gone pretty
much along with stocks but this
cannot be said of the gilt-edge

000 of new 40-year

debentures.

the part of
Bell System companies, is de¬
signed to provide part of the

bargain - hunters,"
and these include chiefly large

funds needed by the company

institutional investors, have had

little,

ture.

for the chance what with funds

of attractive
,

if, California, Washington and
utility boards clear the
track. Since American Telephone

have given up
minor fraction priceVa.

Telegraph owns 89.34% of the

Those used in Moody's aver¬

for

compilation,

age

selling

were

prices

yield

average

rently
the

down

Broken

into

stock which was left

the

sue

picture works out pretty much the
same.
Best grade public utility
obligations were offering a return
of just about 2.50% on Aug. 20
and

they

The

measure

reces¬

sion, the yield on the August date
having been 2.59%, while current¬
ly it is around 2.65% to the buyer.
Industrials sagged a trifle more
to increase the yield ; about
11
basis points in the same period, or
from

2.41%

2.52%

current

basis..

'v; ■;:/•

the

With

fall

••

stock

prices
poten¬

having sidetracked many
tial equity offerings, including the
*

derwriting
task

leaving the un¬
the

marketing

with

banker^

which

stock

Consumers

16 it

"Times",

npted:

was

quently, sold by him to Americans,

transfers."

received

interest

since

"The British Council of Foreign
Bondholders also is recommending

the

that

sterling

the

holders

proposal."

bonds accept the

Power

said:

which

The

company

sale

indefinitely.

contemplates the

sufficient

amount

;

Lives

posed of well over 500,000 shares
of their holdings, which; would
mean
that - upward of • 1,100,000
shares of the overall block had

Manager

definitely placed.

Plans for

tion located in

City with
is

its

copy

to handle

person

advertising, preparation
for

pamphlets,

newspapers

direct

mail

and

Council

der which it will be

following

plan:

^ '

experience
or

required.

female

over

May

27 years of

age.

Write Box S 19, Commer¬

cial

Financial

Chronicle, 25

stating
tions,

experience,

age

qualifica¬

and salary expected.

under

35, designating the
Corp., -Spring-

Bosch

public sale

certain

published,

sion Trust Plan

Kincaid

modified

terms

will

detail

debt

that

;

record

C.—Leonard
First

which

Reserves

Due

Notice

;

Cent.

Mortgage "

Gold

October

described
the

accumulated

for

been

Y.,

employee or

officer who does not survive to re¬

tirement

age

whose

ment ends before 20 years

ice

will be

available

employ¬

of
the

serv¬
em¬

Sep-

letter
the

Interest

ALLAN,
Secretary and Treasurer

should

usual

100,

Company. '-•>
October 1, 1946,
collected

large

Government."

Trust

As to the Greater Prague Mort¬

asset

Loan of 1922, the Protective

Penco Pension
Plan affords a stability in
values and interest yields
fund,

tained.

Also definite economies in

operating costs

can

be effected.

the
"•

;

RAILWAY1.

v,.

COX,
>i

i-—:

Secretary.

■

,>v

WESTERN

LION OIL

COMPANY

Common Stock

A quarterly dividend <

Board

The

kansas

Western

declared

Gas

half

35<1

Directors

quarterly

and

twelve

Ar¬

tional

September 15,

mailed

from

the

The

First

Capital Stock

Company, payable'

September 27,

1946.

The stock

transfer

books will remain open.

1946. Checks

E. W.

ATKINSON, Treasurer

Na¬

September 10, 1946

Bank

of this

share has been de-1

October 15, 1946, to stockholders of record

(la'Ac)

share,
payable September
30,
1946, to its holders of common stock
of record

per

clared

Company has
dividend
of
cents

per

Chicago on or about
1946.
L.
BAXTER, President

September 30,
L.

United Shoe

Noble

The

West

and

Brooklyn,
of

Board

Manufacturing

COMPANY

25c

York

New

Directors

Preferred

clared

the

American

Company

per

books

Transfer

1946.

ROBERT

will
B.

remain

dividend

Streets

has declared a divi¬
share on the Common Stock,
payable
October 1,
1946,
to Stockholders of
Record at the close of business September 19,

dend

clared

Directors

Machinery Corporation

this Corporation have de¬
of
37*/2C per share on the
stock.
They have also de¬
of
62y2c per share on the
Common
capital
stock.
The
dividends
on
both Preferred and Common stock are payable
October 5,
1946, to stockholders of record at
the close x>f business September 17, 1946.
The

MANUFACTURING

AMERICAN

capital

dividend

WALLACE

KEMP,

Treasurer.

open.

BROWN, Treasurer.

FINANCIAL NOTICE
Dividend

ARUNDEL

THE

Notice

Md.
September

Directors

this

day

CORPORATION

Baltimore,
Board

The

1946

16,

the Arundel

Cor¬

the regular

EASTERN RACING

declared

25 cents per
quarterly dividend on the
no
par
value stock of the corporation issued
and outstanding payable on and after October
1, 1946, to the stockholders of record on the
corporation's bocks
at the close of business
September 20, 1946.
MARSHALL G. NORRS, Secretary.
has

ASSOCIATION, INC.
The

Co.

the
of

DIVIDEND
A

dividend

capital
clared
of

stock

No.

this

record

September
LIONEL

1946

19, -1946.
W.

the

been

de¬

share
has

Company

Eastern

Colony

Trust

Bank

and

of New

Co.

to stockholders
--

UDELL,

»<'■-

•

Treasurer.

been

ap¬

pointed Transfer Agents

189

fifty cents per

payable October 15,

Old

Boston

Manhattan

The

UNITED FRUIT COMPANY

Directors

Racing Association announce
that

the

which could not otherwise be ob1

Dividend Notice

point out that by pooling many
relatively small funds into one

service

attached

Philadelphia, Pa., September 4, 1946.

CAS

Trust

and

WESTERN

AND

will

sheets

manner.

—v

ARKANSAS

Mortgage,

COMPANY,

presented
the

April
1,
1947, to
inclusive.
Form of
may
be obtained at

due

detached

NORFOLK

Philadelphia 32, September 6, 1946

above

Corporate

coupon

both

Bankers

No.

the

due

1996,

transmittal

office

Coupon

ployer in the form of a credit
against future contributions. Offi¬
cers of the Pennsylvania Company

proposed by the Czechoslovakian

•

16 Wall Street, New York; 15,
after October 1, 1946, for the

under

Company,

of having

October

that

should

Trustee

Trust

covering

stockholders of
on

bonds

Successor

purpose

H. C.

poration
an

Bonds

1996.

,:o

hereby

given

Department,
N.

Stock, payable Septo

Bankers

tember 16,1946. Checks will be mailed.

constructed

have

Securities

First Consolidated
Four Per

the close of business

participating institutions will
required initially to draw

fits.

"The City of Prague authorized

the Common

tember 30, 1946,

■

heavily on capital funds in order
to provide for past service bene¬

the

Council says:

with

Corporation, 111 Corcoran Street.

Accumulated Surplus of the Company a
dividend of fifty cents (5-50) per share
on

not be

formalities have

by the par¬

With First Sec. Corp.

with, it is under¬

giving

ticipating banks. The Penco Pen¬

Outstanding

announcement

composed

committee

three members elected

dollar tranches are

complied

investments will

subject to the approval of

pension

figure excludes bonds,held by the
Czech Government, certain Czech
institutions and nationals, which
bonds are to be cancelled.
"After

company

„

Purchases

DIVIDEND NOTICES

Quarterly Dividend

■

also attend¬

interest.

the

trustee.

because

time this fall."

some

DURHAM,

NOTICES

184th Consecutive

and sales of all

reported at about $1,723,300. This

The Directors have declared from the

sound actuarial basis and will be

Company

American-held dollar bonds have

gage

No.

Order

administered by the Pennsylvania

Bondholders,

Foreign

President, James Grafton
Rogers.
Since Oct.j 1, 1939, tfye

Park Place, New York 8, N.Y.,

issued

time

"The fund will be established on

time, Mr. Mark-

same

this

ployees and officers of participat¬
ing institutions

its

stood

the

■'

to assure em¬

are

holders

expected that it will be offered at

The Electric Storage Battery

the

regarding

say

the

Railway Company

administered,

try, says the announcement from
the company, which also has the

The Council was represented

been

ration

The Penco

ing fund of its kind organized in
the banking history of the coun¬

by the Custodian,

Pennsyl¬

the first state-wide participat¬

dam Stock Exchange

and

relations. Copy writing

public
male

New England

250,000 population

seeking

all

■,

Pension Trust Plan, the name un¬

Servicing; Bg;

Bondholders Protective
Inc.,
and the
British

Foreign
Council,

bonds

addresses

and

To Holders

throughout the State;

transfer of the stock.

order, each key corpo¬

Norfolk and Western

Of Czech Bonds

received

growing financial institu¬

will

restrictions

DIVIDEND

and

p "Its objectives

record of the stock vested and sold

the resale of the vested
1

American

Granting Annuities, it
was announced on Sept. 13.
Invi¬
tations to join the plan are being
sent
to
banking
institutions

made

statement

ration. is, ^eqihrqd jtp/fpunish the
APC periodic lists of the names

vania Company for Insurances on

by the 232 member underwriting
group indicate that they have dis¬

ed.

New Business

the sale

old age retirement benefits
employees' has

established by the

representing

prohibitions and restrictions

Under the

officers and

been

balance

Recent tabulation of sales

its

plan of service on the
external bonds of the Czechoslo¬
vak Government. Representatives
of the Committee of the Amster¬

Advertising-

defense

the

of the United States
will be designated 'key corpora¬

pension
plan which will
any bank in Pennsylvania

to pay

1,447,525 shares to the pub¬
lic at the same price.

regarding

HELP WANTED

vital

are

General Order

:•

economy

ham

By Pennsylvania Co.

all certificates

issued

"Mr. Markham pointed out that
regulation—APC General
Order No. 35—provides that cer¬ American Bosch
Corp. was the
tain business enterprises in which
only firm designated a key corpo¬
stock is held by the APC
and

tabled

11'\J' ■>V]'

ex¬

"The

shares.

Plan Announced

advices from the

Property Custodian further

"At

of the

tions";^ and

State-Wide Pension

been

Alien

shares of vested stock

every

hereafter

ownership, and control as
The

went

key corporation,
directed by the APC, will

stamp

the result of intermediate sales or

been

found at the time of. World

were

enemy

1939.

when

cor¬

seized by the Alien
Property Custodian during
the
First
World
War,
and
subser

plan, includes the exten¬
sion of the Maturity of both bond

have

domestic

Markham

plain that

porations

reasonable in-r;
come-at retirement age, in addi¬
tion to Social Security benefits,
?
week will be centered on the dis¬
and to
increase
personnel effi¬
The Foreign Bondholders Pro¬
tribution,. of
$7,500,000
Tampa tective
ciency by thus eliminating the
Council', Inc., made known
Electric Co. first mortgage bonds
financial worries of old age. All
on Sept. 16 plans which it recom¬
of 1976.
This issue is scheduled
mends for servicing of the bonds permanent employees and officers
to reach the market on Sept. 25,
of a participating institution will
of the Czechslovakia State Loan of
and the company will use the pro¬
be eligible to enter the plan upon
1922, Series A and Series B, stat¬
ceeds to repay
certain existing
meeting the service requirements
ing with respect thereto that:
:
debts and provide for new con¬
established by their respective or¬
| "Negotiations have taken place ganizations.
struction.
'' -■>?:
:V \V
Normal retirement
recently in London between rep¬ will be at 65
years 6f age for both
The
above-mentioned Con¬
resentatives
of
the
Czechoslo- men and women.
:
^
'
sumers Power Co. undertaking
vakian. Ministry of Finance, the
has

stock

"Mr.

order, ex¬
instances

many

citizens who

resident in the United States.

are

War II to have again come under

"The

the

large block of additional common

..Co. , )vas originally, scheduled to
sell," via competitive bids, next
Tuesday, interest in the coming
,

company

592,475

same

of Sept.

pub-,

owned by American

enable

originally of¬
fered
2,040^)00 shares of the
Cincinnati stock at $26 a share,
to
its
holders, who acquired

high-grade rail list shows

about the

In the New York

lished.

in¬

has been moving along to

The

about 2.56%.
V

unsubscribed

vestors.

selling to yield

are now

would

service

the

that

plained

placed

by Columbia Gas & Electric Corp.,
shareholders, are well .. satisfied
with the manner in which that is¬

groups

'•

the Cincin¬
nati Gas & Electric Co., common

„.

very

*,,

handling

Bankers

bonds averages around

same

2.58%.

clearly

Cincinnati Gas Offering

indicated return

the

debt

indicated
2,50%. Cur¬

return

last

quite

largely cut and dried.

example,

Aug.

part of the

stock outstanding this

program
f

■ '

Oregon

category
very

Wise.

and

Taken pn a yield basis corpor¬

ate bonds falling into the triple A

rating
only a

certain

after

that

„

had
been
complied
with details of the modified terms

formalities,

issuing
"in

ham,

after

Council,

and modifL
With the debenture sale com¬
cation of interest payments as well
pleted the company plans to offer as sinking fund and redemption
to shareholders 328,125 additional
provisions. Holders of the Amer¬
shares of common stock, when as
ican-held
bonds
of both
issues

they doubtless have been hoping-

the

stated

posals

represents a, new mopey, ven¬

positions

i piling up for want
outlets.

corporations, seized by the APC,

being transferred to or ac¬
quired by " any person 1 not an
American national."
Mr. Mark-

As in the case of the Czechoslo¬

bonds

or
corporation having its
principal place of business in the
United States provided that 75%
interest
in
the
organization
is

from

issues to Oct. 1, 1960,

opportunity, to
though

any

their

better

in the United States, any partner¬

ship *

to be cancelled."

are

any
individual
of and resident

citizen

which

The

Outstanding

1939.

who

the United

subdivision

any

thereof,

agency

of the United States was
Sept. 10 by Mr. Markorder prohibits "any
interest in stock in designated key

ported at $604,000. This figure ex¬
cludes
bonds
held by the city

work accumu¬
and

with

ahead

issued

bonds of the dollar tranche are re¬

lated during the war years

Potential

May

States

defense

the

American national'

ham.

interest

presenting a summary of the pro¬

other

undertaking,

This

field, Mass., as a key corporation
within the meaning of the orddlr.
In general terms, the order defines

ec<?nomy

bonds' of

dollar

this City have received no

vital

held

and

The

City of Greater Prague;

since

external bonds

the

vakia

(similar projects on

given
only slightly and grudgingly.

list where ground has been

fashion. True,

convincing

issue

nounced quiet until the

the

storm

the

break

recent

market

bond

investment

Electric issue

of' pro¬
early part
month when, on Oct. 8,

faces

market

The

general order prohibiting the
transfer or acquisition by an alien

of stock
of corporations seized
and the British Council of during the war by the Alien Prop¬
Foreign Bondholders, for a plan of erty Custodian, James E. Markham,

American-held

out'of the way, the. new

May Not Have Slock of Seized Corps.

Inc.,

;

the Tampa

Aliens

gotiate in London recently With
representatives of the
Foreign
Bondholders
Protective
Council,

Pacific Telephone
After

1495

THE COMMERCIAL & FINANCIAL CHRONICLE

Number-4526

tVolume 164

and

York

have

Dividend
for
tion

today

Disbursing

Eastern Racing

Agents

Associa¬

Preferred Stock.

*•

•

Get Margin Rules Changed

Schram to Try to

stock market is no time
to bring pressure on Federal Reserve for resumption of margin ,
trading, Association of Customers' Brokers at annual meeting
yesterday nevertheless believed question of margins to be of such '
important timely interest as to warrant lengthy discussion. Associa¬
tion's unsuccessful efforts since last spring to have the Federal
Reserve change its policy and make a public statement to that
effect long in advance of any lowering of requirements were re¬
Though feeling the period of a declining

be,
it was thought, should make the
next move to try to get the Fed¬
eral Reserve to lower the margin
requirements. The Association's
unsuccessful
efforts
since
last
spring to try to get the Federal
Reserve to change its policy and
to make a public statement ;, to
that effect long in advance of any
lowering of requirements were
reviewed.
;
;
'
A
committee
was
named to
study the probable efforts on the
securities
market,
particularly
with regard to the welfare of cus¬
tomers, of the threatened shut¬
down of the New York Stock Ex¬
change by its unionized employ¬
ees. The members of the Associa¬
tion
were
worried
over
what
could happen in the event of a
strike in a critical market and
felt that they should be informed
as to what steps are being taken
to meet
any
eventuality which
might develop. Another commit¬
tee was named to look into the
feasibility
of
indicating
short
industry

sales

the tape.

following

The

elected:
Witter

can

anyone

covered
toward

officers

were

M. Ross, Dean
President; Archie

Richard
&

Co.,

Harris, Merrill Lynch, Pierce,
Fenner & Beane, Vice President;
N. Leonard Jarvis, Hayden Stone
F.

tive

Named to the execu¬

firms

indicated)

Lester

were:

Either he

town

with

Das

Volk"

the

(with the people,
~
grapevines

hothouse

The
stretch

themselves

Souci.

sleepily

warmth

terraced

their

the eye
is

Old Reorganization
Rails

distracts the ear. For here

being

history

This

made.

is
Commons & Pfds.

election day in Potsdam.

for

still
in

although not all of them
whole.
Many contain paint¬

are

.'-V

v*4'

•' V

\i •

U V-*

•

*.'»•

•

Chronicle)

to Thk Financial

(Special

Lynch
FOREIGN SECURITIES

;•«v

;' SAN

CALIF.

FRANCISCO,

—

ings and art works which the na¬ Willard R. Griswold, Jr. and Ralph
say

Russians have

the

although

natives

admit

not

questioning

that

German

troops plundered Russia and other

been added to

J. Preminger have

the staff of Merrill Lynch, Pierce,

M. S. WIEN & Co.
ESTABLISHED

Fenner & Beane,

301 Montgomery

Street^'

Members
40

$508,946,845 as
figures % of
$598,394,909 on July 31. Details as
given by the Exchange follow:

Aug. 30 aggregated

1919

Ass'n

SecurityDealers

Exchange PI., N. Y. 5

HA. 2-8780

Trading Markets in

compared with •; the

total

vy. .■yyyyy y y.y.'

■y

•

Artkraft Manufacturing Corp.

borrowed

money

y'<-

■ •

banks, trust companies and
other lenders in the United States,
from

Baltimore Porcelain Steel

excluding borrowings from other
members
of
national securities

148

Higgins, Inc.

(1) on direct obliga¬
tions of or obligations guaranteed
as to principal or interest by the
United States Government, $203,exchanges,

York

reported

of the close of business

".y%"
v.; The
total of money borrowed,
compiled on the same basis, as of
the close of business July 31,1946,
was
(1) on direct obligations of
or
obligations guaranteed as to
principal
or
interest
by
the
United States Government $241,957,420, (2) on all other collateral
$356,437,489* Total on July 31,
-v--

$598,394,909.
v

•

P^1

Merrill Lynch

INCORPQItATEO

CHICAGO,

rill

Lynch,

REctor

V"t

Worumbo Mfg.

Association

Enterprise

2-3600

6015

Rogers Corp.

B ell teletype

new

Sub Elec. Sec.

york

Merrimac

1-576

Hat

Com.

Thompson Spa

-3 Nat Foods

MINING and OIL STOCKS

.V;;;

Sold

Bought

—

fftl

Ralph F. Carr & Co., Inc.

Quoted

Milk Stroot, Boston 8,

Boston

Mass.

,v.

Toletypo C

New York

...

Hubbard 6442

Hanover 2-7913

BS 328

James ft E.

—

Fenner

Beane, Board of Trade Building.

Wmi&BmMmi

*
*
SS 'V.

y'y

W# specialize in

ft S

'V'. ;

111 Morris Stein & Co.ff|
Established

C50 BROAD ST.,

HANOVER 2-4341,

TELETYPE—N. Y.

1-2866

;

Investment Trust Issues

Public Utility Stocks and Bends

ft.- TEXTILE

Teletype—N. Y. 1-971

and. Bant Stocks
Industrial Issues
;

J924

N.Y. 4

nil

Insurance

Teletype BS 'm

..t

Pneumatic Scale

Pierce,

NEW YORK 5

philadelphia telephone

telephone

Adds to?Staff

ILL.

0425

Y, Telephone HAnover 2-7914

45 NASSAU STREET,

to Thk Financial Chhonicli)

(Special

Pep Boys

Members New York Security Dealers

''.•?■.< -..'V-':i.■

„

Gearhart & Company

August 30, 1946 aggregated $508,946,845.

State,St.* Boston 9, Mass. *

CAP.

Member

Exchange

Stock

Firms

The

Tel.

collateral
by New

955,727 (2) on all other

$304,991,118;

2-0050

member

A. Schroeder are now with Mer¬

HAnover

NEW ISSUES
Two with Merrill

palaces still

The Potsdam

German yguide

American visitors about

the

1455.

page

summer

past centuries and their kings. But

Sans

The

late

stand,

the

(1950),
Eastman, Dillon & Co.; Fred C.
Rugen (1950), Cohu & Torrey;
Co.; Donald C. Blanke

tells

were

Volk, Fuer

Dem

people).

Dewey, James G. Hull, and Paul

All

chill

this

grounds

see

and

through the parqueted halls

directed afternoon.

were

voters.

"Mit

coln

taken*,

(1950), Francis I. duPont

Robins

was

contents

index

strolled

officers

and

e r s

:-y C.y.

of the close of business

The

d i

•-

detailed

For

sol-

Soviet

■;

Stock Exchange
4 that bor¬

reported

rowings

the

women

»'

Sept.

expire in

(terms

committee

year

Delafield,

a.yi

Delafield

Secretary.

The New York

INDEX

/"|

bemedalled

Much

•

cleverly worded with many selfmemorizing rhymes. One of them
indeed seemed to plagiarize Lin¬

Andrew W. Shu-

& Co., Treasurer;
man,

Borrowings on NYSE
Lower in August

Day

1460)

page

fellow

appealing for
the, Christian

sign
CDU,

for

tives

announced

parade,

one-man

quite brave or a knave.
./
Some of the SED slogans which

Schram,

I saw very lands. Outside the orangerie is a
few
campaign posters of other weathered cardboard notice: "Who
parties. Yes, in one street I did plunders will be shot."

ties

(Continued fr<

Democratic Union.

of a declining stock market is no time
the Federal Reserve for the resumption of mar¬

President of the
New York Stock Exchange and
as
representative- of the securi¬

ion

sign of the red flag.

votes

gin trading, the Association of>»
John A. Hevey (1950), Ira Haupt
Customers' Brokers at its annual
& Co.? James F. Hughes (19481,
meeting late yesterday afternoon
Auchincloss, Parker & Redpath;
at Oscar's Oldelmonico's Restau¬
Frank P. Rinckhoff (1949), E. F.
rant on Beaver Street neverthe¬
Hutton & Co.; Kenneth I. Walton
less believed the question of mar¬
(1949), Bache & Co., and Alfred
gins to be of such importance and
M. Elsesser (1949), Kidder, Peatimely
interest
as
to warrant
body & Co.
j
,
lengthy discussion.
Emil

...

carrying

Feeling that the period
to bring pressure on

see

Officers elected.

viewed*

Potsdam

■•!.

Thursday, September 19, 1946

FINANCIAL CHRONICLE

THE COMMERCIAL &

Customers' Brokers Believe It Is Now Up fo

Securities with

SECURITIES
a

•

New Eng. Market ;

Firm Trading Markets

FOREIGN SECURITIES

Frederick C. Adams & Co.

New
•:

Xlnlisted Securities

;•1

■;

Specialists in

■ yt:-

England Unlisted Securities

24 FEDERAL

STREET, BOSTON 10

Established in 1922

r.ARL MARKS & CO. INC. '
FOREIGN SECURITIES

Tel. HANcock 8715

•

Tele. BOston 22

Bank —" Insurance

SPECIALISTS

50 Broad Street

New York 4, N. Y.

AFFILIATE: CARL MARKS & CO. Inc.

'"Seaboard Fruit Co., Inc.

Utility—Industrial— Real Estate

Public

CHICAGO

General Products Corp.
Grinncll

Fleetwood Airflow, Inc.

Gerotor-May

; '"Susquehanna Mills

and Common Stocks

COMMON

Sunshine Consolidated

PERIOD

Pressurelube, Inc.

1st quarter

•

BOUGHT—SOLD— QUOTED

U. S, Radiator,

Pfd.

2nd quarter

237,299.55

260,026.16

REMER, MITCHELL &
208 SOUTH LA
•

••
.

120 Broadway

New York 5

Telephone COrtlandt 7-0744
Bell Teletype NY

1-886

Amos Treat & Co.
40 Wall St.

BO 9-4613

5147,321.36

2 Mos. Ending Aug.

W. T. BONN & CO.

Empire Steel Corp.

NET SHIPMENTS

New York 5, N.

Tele. NY 1-1448

•

SALLE ST.,
\

...

request

REITZEL, INC.

CHICAGO 4 - PHONE

WESTERN UNION TELEPRINTER

Prospectus

•

RANDOLPH 3736
'

■ .

"WUX" * BELL SYSTEM TtyETYPE

;

CG-989

Hill, Thompson & Co., inc.
Markets and Situations for Dealers

120

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : September 19, 1946, Vol. 164, No. 4526

FRASER