The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Final
Edition
THURSDAY
Vv
Section 1
-
V..T
■.
v
in 2 Sections
Beg. U. 6. Pat. Ode*'
Volume 156
Number 4110
New
York, N. Y., Thursday, September 24, 1942
Price 60 Cents
Copy
a
American Bankers Association
OUR
W
Convention In Print" Edition
REPORTER'S
REPORT
In
co-operation with the efforts of the Office of Defense
Transportation, headed by Joseph B. Eastman, to limit civil¬
ian wartime travel to
Observers report increasing evi¬
dence
of
convention
Print."
we
What
has
been happening in
bonds, that is those of
receivership and of com¬
carrier
roads in
panies which
came
the
the
brink
in
quite close to
last
decade, is
vividly set forth in the perform¬
of
ance
rail
the
bond
so-called
average,"
"defaulted
compiled
Dow-Jones & Co.
,
On Jan. 2 last
selected
worth
rently the
an
preciation of
a
Cur-'
of
.
May, 1940 at 7.23.
this time, as
important,
tax
new
provision
New
bill
will
include
permitting the carriers
by purchase in
market, without incur¬
tax liability on the differ¬
a
ential between the price paid and
the par of the bond.
Bank
Business,
Of
investors
chiefly
concerned
on
The
un¬
necessarily omitted at
valuable contribution to
a
war
War
have
been
time
,
.
That's not
.
less
or
the
theoretically greater protection of
New York
of
Central
.
—i
Y.
1078
Assistant
Chicago
Of
Impact
The
Banking,
First
Clyde
of
process
and
or
into
the
intermediate
DISCOUNT
,
.
AND
REPORTS
1080
D.
1082
Not
are
bonds
65th
issues
1082
,
is to
now
move
market.
"out
BUY UNITED STATES
anteed
Sanderson & Porter
ENGINEERSand CONSTRUCTORS
that
the
below
...
par
Not
.
INDEX
Page
liOC
Anniversary
of New
York,
prominent
a
Calendar of New
Security Flotations 1083
Investment Trusts
which
was
figure
in
the
Cnase, Secretary of the Treasury
the
Cabinet
of
1071
Municipal News and Notes......
Our Reporter on Governments
Our Reporter's Report.
The
Abraham
first
statement
of
Established 1927
INVESTMENT
(Continued
UNLISTED TRADING
Railroad
1068
Securities
Real Estate
.f........
„
1069
Securities..............
1068
Securities Salesman's Corner
.
Market—Walter Whyte
Says
1069
Uptown After 3..
1087
on
page
as
THE
of
CHASE
1086)
18S0
BANK
OF THE CITY OF NEW YORK
Brown
Company
Broaden your customer
,,120
"
Ybrlc Stock
Exchange
BROADWAY
correspondent
31
Telephone
N.
Teletype
REcior 2-2300
-
.
NY
Milk Street
Boston
Y. Phone CAnal 6-2610
Boston
1-1693
.
'
facilities
MAY & GANN0N
NEW YORK
.
Syracuse
Pittsburgh
Wilkes-Barre
;
Williamsport
service with Chase
Wertheim & Co.
Members New
SECURITIES
Buffalo
1071
Tomorrow's
Philadelphia
Transportation
PHILADELPHIA
Albany
Troy
v.
Securities of
DEPARTMENT
64 Wall Street, New York
BOSTON
1065
Personnel Items
Lin¬
Active Trading Markets in
San Francisco
,
1065
condi¬
published by the bank
against depreciation
prior to maturity)
-
'
1083
..
guar¬
R. H. Johnson & Go.
|
.
f'y.
..
in value,
52 WILLIAM STREET
NEW YORK
world
the
in
bit"
a
...
in the open market
important issues.
.;
big investors hold in huge quantities and that
(Continued on page 1086)
financial world of that period.
It
was named in honor of Salmon P.
1083
—_
(Series E and F are the only
Established
-
.
........
Bank,
tion
bonds
T
.
selling
anniversary of the Chase National
coln.
Transportation In WTartime, by Joseph B. Eastman, Coordinator
of Defense Transportation—
FINANCING and VALUATIONS
,.
.
.
NOTES
more
September 20 marked the 65th
in
the Dominion of Canada's National War Finance Com¬
WAR SAVINGS BONDS
are
% % level, which proved
,
today than most observers realize.
son,
National
Canada, by George W. Spinney, Chairman of
MANAGEMENT PROBLEMS
Chicago
things:
NATIONAL
In connection with
"V
Phone—Hubbard
Member
Federal
8360
Deposit Insurance
Corporation
Teletype BS 568-569
H. Hentz & Co.
Actual
Member*
New
York
Stock
York
Curb
NATIONAL BANK
Underlying Mortgage
aviations
of INDIA, LIMITED
Railroad Bonds
Exchange
Cotton
Trading Markets, always
Exchange
New
Exchange
New
York
Commodity
Chicago
New
Exchange,
Board
Orleans
And
of
Cotton
other
Bankers
Inc.
rails
Trade
Exchange
Exchange«
to-
Kenya
Head
Branches
NEW
Exchange Bldg.
YORK
Kobbe, Gearhart & Co.
INCORPORATED
Members
BOSTON
CHICAGO
DETROIT
PITTSBURGH
GENEVA,
SWITZERLAND
N.
Y,
Security
45 Nassau Street
Tel. REctor 2-36G0
Dealers
Colony
in
New York
Enterprise
6015
and
Reorganization Bonds
Uganda
26, Bishopsgate,
London, E. C.
in
India, Burma, Ceylon, Kenya
and
and
Aden
Capital. .'..£4,000,000
Capital
.,.£2,000,000
Fund....... .£2,200,000
Paid-Up
The
.
Bank
conduct#
banking
and
Trusteeship*
also
HART SMITH & CO.
.
every
description
exchange
and
Inquiries invited
Zanzibar
Subscribed
Reserve
Ass'n
Teletype N. Y. 1-576
Philadelphia Telephone:
Government
Office:
Colony
N. Y. Cotton
the
"""
industrials
.
issues for the time
tried, the chances
are
long-term
also
SURVEYS
.
on
bringing liquidity into the short-term mart
founded in 1877 by John Thomp¬
Harris,
President, First National Bank, Cape Girardeau, Mo.__
War Finance In
offerings
Chase Bank Celebrates
___________
by
.
issues—75%
these
us
the flotation before this.
on
.
1080
The
certificate
«
________
On
the notes—tell
on
shorter due date.
a
September
Treasury
1079
_____________——
Inflation
the
on
1078
„—
Vice-President,
.
.
more
attractive
W.
Ten Fundamentals Of Wartime Banking, by Herbert V. Proch-:
Bank,
.
any
There
Importance Of Savings In Our National Life, by Philip A. Ben- f
son, President of the Dime Savings Bank of Brooklyn,
....
N.
figures
certificates, 42%
THE
by Dr. Marcus Nadler, ; Pro¬
University, and Consulting
Hanover; Bank & Trust Co.,
City—__..I
To put
.
1076
,*
Economist
v.
allotment
the interest coupons will be around the
1073
____
.....
Policy,
.
has been all but completed.
The best move for the
Coiean, Research Director,
Fund, New York City
Banking, by
.
.
.
The market lias had sufficient certificate
so
by Miles L.
On
.'
The banks
.
The
Secretary of
City, Ponca City, Okla._—___
War
good.
so
.
care
being.
mittee, and General Manager of the Bank of Montreal-
AND CONSTRUCTION
..
.
want certificates—surely.
.
But they
especially whether a maturity is six or eight months and
they would rather have the extra few dollars' interest than the more
.
don't
1074
fessor of Finance of N. Y.
.
QUICK ACTION ON DESIGN
$1,500,000,000 issue, only $1,992,000,000 of sub¬
received.
V
by Henry W. Morgenthau,
Wartime Investment
with
paring
page 1071)
.
a
.
in addition, the large allotment percentage must give
Morgenthau the warning he needs.
Selling issues with such
minor
interest
coupons
is
a
delicate,
dangerous task
at
this
effort.
Record.
New. York
The
For
.
.
.
And,
Randolph Burgess,
Vice-Chairman of the Board, National City Bank of
now,
depression, insti¬
tutional
(Continued
It is not
In Wartime, by Fred C.
Eggerstedt, Second
Vice-President, Chase National Bank of New York—
Effects
A
.
were
mildly.
Protection
"Swapping" A Factor
Ever since the
Bankers'
Twentieth Century
a
open
ring
it
If
Lauds
Housing Era,
to retire their debt
the
of the Association, for making
of the papers
some
Roosevelt
Unfinished
;
perhaps equally
expectation that
the
thanks to
.
scriptions
study of the problems of banking in wartime and the
rail earnings, and
the
our
important part played by the industry in the
the rising trend of
on
organ
wish to express
they also constitute
of Ponca
Traders have been active in the
group for some time, basing their
operations
we
.
get
in full.
listed be¬
likely that it will be possible, to publish in future issues of
A
.
.
low, in January of 1941, of 10.78
on
prepared for the Association's
publication in the "Chronicle" possible.
53.3%.
some
.
offering to put it over.
Well, the issue did go
over, as naturally it would.
...1 But allotments were on a straight
75% basis for all subscriptions over
$25,000, and those were allotted
A Yearful Ahead, by Henry W. Koeneke, President of Ameri¬
can Bankers
Association, and President, Security Bank
around
.
behind the
1074
while the low for recent years was
set
limitations,
space
Those that do appear are
connection,
the "Chronicle"
the
banks outside of the big cities would
sidestep the issue, concentrate
on
the lJ/4% notes.
It was obvious country banks
wouldn't want an issue bearing so
slight an interest coupon.
„
Obvious New York City's and
Chicago's banks would have to
an
indicated ap¬
an
In
.
that, owing to
were
"Banking," the official
President
The average for these issues set
-
"Convention
a
INDEX OF ARTICLES
of ten
13.99.
worth
showing
which
When Secretary Morgenthau announced
he was going to sell
$1,500,000,000 of certificates of indebtedness carrying only 0.65%
interest, most experts were shocked at the "close shaving," predicted
instead
therefor,
ten bonds show
same
average
21.40
,
of
minimum, the American
give in this issue of the "Chronicle" all
•
group
defaulted liens had
average
v
a
by
articles
low and, in this
their
rail carriers.
substitute
"Convention In Print."
.1 business has been
exerting upon
i
the traffic and earnings of the
i
to
unable to
were
Presumably the public, which
of the
and
It is unfortunate
months.
latedly, becoming aware of the
revivifying influence which war
absolute
Bankers Association decided this
year to cancel its annual
growing public interest
in lower-priced speculative rail¬
road obligations which have been
in
a
rising trend
for
several
has had little interest in specu¬
lation in recent years, is, be¬
an
Members
New
52
York
Bell
ini
Security Dealers Assn.
WILLIAM ST.,
business
Executorship*
undertaken
©
N. Y.
Teletype NY
HAnover 2-0980
GUARANTEED RAILROAD
BO.
New
York
9f'$).
STOCKS-BONDS
1-395
Montreal
Toronto
Or.
9-6400
Telephone
NEW YORK
52
Broadway
N.Y.
1-1063
Teletype
Thursday, September 24, 1942
FINANCIAL .CHRONICLE
THE COMMERCIAL &
1066
Trading Markets in:
;
We Maintain Active Markets
in V. 5. FUNDS
Line
American Barge
Alabama Mills
t<
* ,t
Aircraft
Aeronca
DEALER
for
BRIEFS
Canadian Securities
Liberty Aircraft *'*:
Debardelaben 4s,
PI., N.Y.
40 Exchange
If anyone
that
Dealer Asks NASD Perlisienl Qaesiicn //
of
FOR UNCLE SAM"
ADEL PRECISION
*
NORTHROP AIRCRAFT
ROHR AIRCRAFT
SOLAR AIRCRAFT
TIMM AIRCRAFT
New
is
Announcement
business."
<
.r
is
or
man
.•
Philadelphia
something
who
recalls
says
one
direct
to
we
the
short-handed by
Penna. Co. for Ins.
charge of programs and schedules
announced on Sept. 19 by
of
made
&
relinquishing his
Mr. Eberstadt is
the
Nelson.
post as Chairman of the Army and
Navy Munitions Board in order to
accept the new assignment.
In
position he will have charge of
manufac¬
his
the flow of materials to
throughout
Securities Corp.; Mr. Canniff was the war effort, taking over the re¬
formerly held by
with Taylor, Bates & Co., and for sponsibilities
James S. Knowlson, another WPB
many
years
with Harriman &
Co.
Scott
Royal
and
and
turers
producers
Chairman'for
Co.,
ana
many
H. N. NASH & CO.
our
Teletype
,
Edward
Drexel
19^2-
the
in/ the
investment
term
Butcher
Schmidt,
Schmidt, Poole & Co., and Ber¬
tram
W.
Wilde, Janney & Co.,
D. Buzby, Jr.,
Walter
were
elected
Committee
to
for
A.
Executive
the
three-year
257
PH
cial world. If the reader in scanning
contemplating
Any investor
Thayer, Thayer, Baker & Co., was
named Secretary-Treasurer,
Sherrerd;
York Phone
2-2280 i
HAnover
1477
Locust
.
„
long-
a
terms.
will occasionally
files
old
flect
insurance
that. ha6
all
on
re¬
happened
"parlous times" he can
his port¬ hardly help concluding that the
casualty future will take care of itself if he
Also, we feel that in his will just keep plugging away at the
of fire stocks he should
job today and tomorrow.—Plumsince those
industry should include in
folio
a
stocks.
selection
of
list
selected
consideration to those
companies with strong casualty
affiliates.—F. L. Putnam, F. L. Put¬
give serious
fire
Purdham, Burns, Potter
P.
mer
Louisville, Ky.
We
Denver, Colo.
find .investment
We
inquiry
at
a
new
well
demand and
low, due, no
have
offerings
on
small
only to better
the
supply is limited.
We
are
for
local
securities,
■
Company Stock and Louis¬
& Electric Company 5%
surance
ville Gas
Subject
Preferred Stock,
expect
indef¬
war news, we
♦
nice demand
such as—Bel¬
also having a
knap Hdwe. & Mfg. Company Com¬
mon Stock, Commonwealth Life
In¬
fairly
gone
allotments.
experiencing quite a de¬
Municipals, but
are
mand for Kentucky
doubt, to war bond purchases by
clients, prospective tax increases
and lack of new issues.
Some few
flash
&
Company
& Company
nam
year
William
New
Phone
Phila.
optimism.—W. T.
Childs, Stein Bros. & Boyce
r
•
Philadelphia
Street,
Chestnut
1421
held
&
2039, Pfd. & Common
3-6s
our
have not lost
at its annual meeting
recently.
Sydney P. Clark,
E. W. Clark & Co., was again cho-.
sen Vice-Chairman and Albert R.
1943
Lives etc.
cn
Ihiladelphia National Bank
Phila. Transportation Co.
.
•
Bankers
Hopkinson, Jr., partner, in
•
Girard Trust Co.
ing- harder than ever and doing a
little in almost everything; and we
Pennsylvania
Eastern
Group of the Investment
Association
re-elected
>
Fidelity-Phila. Trust Co.
organization being
the armed service, we are work¬
members of
in
Bonds;,
War
into
are
Stocks
Bank
'
business
no
.
•
other hand,
the
while
By Pennsylvania 1BA
The
was
St., New York City, of
Eiger
and
George V.
Mr. Eiger was formerly
E.
miracle
spies' evil report in Numbers 13.
There is business to be had, not¬
Hopkinson Re-Elected
Appointed
WPB Chairman Donald M.
52 William
H.
a
-
there
Se^
be good enough
you
appointment ,of.. Ferdinand
Eberstadt as a Vice Chairman of
the
War
Production
Board
in
association with Hart Smith & Co.,
with
omitting
are
proposed rule X-15C1-10 of the
The
With Hart Smith & Go.
Canniff.
We
are
Text of the letter follows: withstanding the billions of invest¬
ment dollars all of us are helping
firm.
the
To New WPB Post
Stock Exchange '
Eiger & Canniff Now
William
N7 1-1557
the
Eberstadi
Spring St., Los Angeles
650 S.
Y.
New York, N.
Boston, Mass.
FAIRMAN & CO.
Los Angeles
BH 198
•
25 Broad St.
Written Request
Be Sent Free on
Members
request,
-.
Will
Booklet
16-Page
the proposed SEC . bid and
writer's
Commission, will
Exchange
continue in the securities
1
On
to
inform us whether the. NASD may have postponed the
payment
date of the membership assessment due ^ct. 1 for the fiscal year
Oct. 1, 1942, to Nov. 30, 1943? ; Obviously, if the proposed regula¬
tion becomes effective,
the majority of investment dealers will
have no need for membership in the NASD or further incentive to
DRYDOCIC
L. A. SHIP &
of Securities
the
of
that
and
name
and
curities
MOTORS
KINNER
else.
"Pending determination of
•
•
CASTING
DIE
HARVILL
his
both
CORP.
At
rule.
disclosure
either
with a copy
Philadelphia, concerning
Dealers, Inc.,
traders
boardroom
the
,
the National Association
to
them
by
sent
letter
a
asked
HARLOW AIRCRAFT
Direct Wire
keeping the order clerks busy, he is
firm has furnished us
dealer
State
York
New
A
"SHIPS and PLANES
AIRCRAFT ACCESSORIES
La. Birmingham, Ala.
New Orleans,
very
stocks, high grade bonds and preferreds, and speculative rails, and
TELETYPE NY 1-423
BELL
business is
you
the Free State of Mary¬
land, that there is a great demand
for Municipals, bank and insurance
Teletype NY 1-672
Telephone BArclay 7-0100
tells
Maritime Bldg. Brown-Marx Bldg.
in
good
NEW YORK
>'
Members New York Stock Exchange
Baltimore, Md.
and Other Principal Exchanges
,
BROADWAY
115
Dealers Ass'n
HA 2-2772
York Security
Members New
,
1920
-
Exchange
Members New York Stock
KATZ BROS.
Established
Steiner, Rouse & Co.
Goodbody & Co.
,
1957
O'Cara Coal Co., 5s, 1955
Missouri Pacific
5%s, Serial
;
We have also had quite a bit of
Boenning, Boenning &
initely.—Chas. W. Webb, Walter- activity in Railroad bonds that are
in
the process
of reorganization,
Combined
Production
and
Re¬ Co., was elected to fill the unex-r Webb & Company
in New York City, Montreal and
and have found people taking more
sources Board.
The change, it was pired term of Thornton C. Pray,
Toronto, and have for many years
and more to these.—C. A. Lucas,
Wurts, Dulles & Co., who has re¬
said, will leave Mr. Knowlson free*
The public in our territory are buy¬
been active in the field of Cana¬
Stein Bros. & Boyce
signed from the Committee.'
to devote his time to the work of;
ing Government Bonds.
Because
Smith
Hart
-
dian
offices
Co. have
&
securities.
deputy
Washington
MIn order that
Mrs. Nellie Tayloe Ross, Direc¬
\ :
tor
of the Mint, announces that
production of the new "Victory-
alloy"
five-cent
coin
began
on
Sept. 18 at the Philadelphia Mint.
The
coin consists of 35%
new
56%
ver,
and
copper
ganese, thus saving
all the nickel and
the
of
copper
9%
for
use
of
me
design will
new
coin.
The
Sept. 19 said:'
responsibility for
control of materials may
plained at the WPB, Ernest Kanzler, recently appointed Director of
Operations, will report to Chair¬
man
Nelson through Mr. Eber¬
stadt.
to
it
that
I
.
.
■'
"Duke"
J "Duke"
42
,
(
Hunter,
Jr.,
son
of
Hunter of Hunter & Co.,
Broadway, New York City, is
on
active
canal
area
"Duke"
drawn
making
for
responsibility
up
ma¬
these
pro¬
and schedules are tied to¬
gether by centering both respon¬
sibilities in Mr.
Eberstadt, Re-;
service
in
Guadal¬
the
sponsibility for following through
on all production schedules to see
that they are met is up to Charles
E. Wilson, recently appointed a
Vice-Chairjrnan."
is
a
member
of
the
U. S. Marine Corps.
Pittsburgh Bond Gluts
To Hold Fatt Outing
PITTSBURGH, PA.VThe Bond
of Pittsburgh will hold its
annual Fall outing on Thursday,
October
1st,
at
the Shannopin
Country Club.
A feature of the day will be a
golf tournament, the Bankers Cup
Associated Electric
Club
4/4* & 5s
Utilities Employees
Securities Co.
to
awarded
be
Greens
6s,
1981
fee
Join Ira Haupf
Newman Bros.
Claude
30,
S.
the
to
will
be
and
dissolution
of the New York Stock
Hi
i
PINE ST..
N.
Y.
with
u
G.
C.
St. Louis,
only qualified to comment
on
St.
Lours,
Kansas
City and
Southwest real estate securities and
We
However,
securities here
Exchange,
free
well
price
are
a
will become
Municipals
are
retail
scarce,
side.
Leonard
All buyers
are
good market
winter.—Edward D.
a
Jones, Edward D. Jones & Co.
pect very
pals offer too low a yield for
and
never
Good securities
We look for
fall
this
territory
our
income.
scarce.
bid
Glaser,
Vogel,
prosperous!
more
was
want
our
!■
and
Louis
on
F. W. Morrow Becomes
remained
has
—
Vogel & Co.
St.
mitted to
railroad bonds.
Consequently
on
the
clientele.
interest
it appears
Oct.
1. :,AlsO' ad¬ Christensen, Inc.
partnership in Ira Haupt
&
Co.
will be Jules
R., Gim- Our clients are investing liberally
Mu¬
bernat, Jr., who has been with the in Government War Bonds.
firm for many years in charge of nicipals are very scarce and we ex¬
change,
Mo.
are
that the bond man will
partners in Ira Haupt & Co., 39 have to trade in the "bid and
Broadway, New York, members asked" market for the duration.—of
the
New
York
Stock
Ex¬ Gerald Peters, Peters, Writer &
and Samuel E. Worms
little if any new financ¬
ing for the "duration" with very
little ref unding in prospect. Munici¬
St.
individual investor and we
clients looking towards
stocks with long dividend records
CLEVELAND, OHIO—Frank W.
find
proven
for
management,
Dealers
There has been
our
and
Louis
are
actively
en¬
gaged in the sale of United Stated
War Savings Bond and Tax Notes.
the
average
H. L Emerson v.-p.
in this
to
area
a
splendid
response
the Government of¬
ferings.
a
The municipal
market has been
member of the Cleve¬ more liberal return. — Ernest E.
quiet with a reasonably constant
land Stock Exchange, has become
Stone, Donald F. Brown & Com¬
demand for local and mid-western
a vice-president
of H. L. Emer¬
pany, Inc.
names of one to ten-year maturities
son & Co., Inc., Union Commerce
from banks and individuals.
Insur¬
Building, which has been elected
Omaha, Neb.
ance companies
have been more or
to the Cleveland Exchange.
Mr.
less on the sidelines as far as mu-,
Morrow was formerly proprietor No intelligent dealer can boast that
of Morrow & Co. in
Cleveland business is good, and undoubtedly nicipal bond purchases are con¬
cerned.—James F. Quigg, Missis¬
and prior thereto was a partner it is worse with some than with
in Cunningham & Co. and its pre¬ others. Some dealers have been so sippi Valley Trust Company
decessor Kraus-Cunningham & Co. adversely affected, or fear they are
winner.
$1.50.
going to be, that they are seriously
talking about the end of the finan¬
R. S. Harris Is New
Other
With M. A. Saunders
tennis.
Dinner
MEMPHIS,
TENN.—Richard S.
M. A. Saunders &
WHitehaH 4-4970
Teletype NY 1-609
their
of liquidation is of
Harris has become associated with
Reservations
issues
there
and
held
have
bers; guests, $2.50.
■r
new
nationally,
offerings to make.
few
the over-the-counter
& Go.
will be at 7:30 p.m.—free to mem¬
G.A.Saxton&Co.,Inc.
a
locally
and
minor character. accordingly we can state that we
have found an increasing demand
& Worms on Sept. Yields are excellent even after the
for this type of securities by our
Newman, member estimating the new tax bill. . Tax-
the
Following
sports featured will be Le Bocci,
Mo-Skeet-O
limited number of
to
Morrow,
in the Solomon Islands.
Jr.
condition
of
Newman & Worms Will
grams
'
"Duke" Jr. In Solomons
:
■
"
are
and
and the
programs
proper
terials available to meet
,
seeing
said, responsibility for
son
schedules
17, page 979.
.1
Nel¬
"Under the new set-up, Mr.
referred to in these columns Sept.
•1
cen¬
both in respect to the
program
determination and the
execution of allocations, it was ex¬
change in the metal composition
the new five-cent piece was
of
be
tralized,
"nickel."
present
be continued in the
man¬
war
2o%
The familiar Jefferson
sil¬
on
York
New
the
to
"Herald-Tribune"
continue
this
Henry D.
Special advices from
that board.
? New Nickel In Production
Nelson's
British-American
the
on
Mr.
and
Chairman
Vice
Keech.
should
Bodell,
be
made
Chairman
the
of
Outing Committee, Peoples^
Pittsburgh Trust Company. ' ! ' •
»
i\
m
■«.
Co., Inc., Union
Planters Bank Building. Mr. Har¬
ris for many years was
proprietor
which
discontinued' business/:
of R. S. Harris & Company,
has
now
Rails Attractive
The
cial world.
A
good
for
cure
current
defaulted
apprehension
situation
railroad
bonds
in
five
offers
possibilities for poten¬
and profit, according
distributed by
files of the "Commercial & Finan¬
cial Chronicle." An excellent place Pflugfelder, Bampton & Rust, 61
to
start
is about mid-1912 when Broadway, New York City, mem¬
bers of the New York Stock Ex¬
Woodrow Wilson was campaigning
Copies of the circular
for the Presidency.
The "Chron¬ change.
are available from the firm upon
icle" "then as now accurately por¬
request.^
• v
trayed the sentiment of the fiqan-i
y
about the future is to
spend
urday afternoon or two
\l
r
;
' 1
a
attractive
Sat¬
tial
reading old
'
•
I
•
'
■
'•
)
to
'
a
income
circular being
t
Volume 156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
1067
COMMERCIAL and
Halsey, Stuart Group
FINANCIAL CHRONICLE
U.
Reg.
S,
Patent
Office *
,
<i'
„
25
The
Spruce Street, New York
BEekman 3-3341
William Dana Seibert, President
Riggs,
Thursday,
24,
1942
Published twice a week [every Thurs¬
day (general news and advertising issue)
with
statistical issue
a
Other
Monday]
on
;
offices:
Chicago—In charge of
Gray, Western Representative,
Field Building (Telephone State
0613),
London—Edwards & Smith, 1 Drapers*
Gardens, London, E.C.
Fred
H.
Copyright
1942
by
William
B.
Reentered
as
Dana
in
United
States
In the rate of
exchange, remittances for
..
two
over
were
subscriptions
and
advertise¬
At the meeting of the Officers
National
Committeemen of
National
bid
98.929
Bank
for
Security Traders As¬
sociation in Chicago, after a com¬
by
the
Securities
.
Dick &
Co., Bacon, Stevenson &
Co., Coffin & Burr, Kean, Taylor
& Co., Hornblower &
Weeks, Geo.
B. Gibbons &
Co., Otis & Co., Inc.,
Tucker, Anthony & Co., Arthur
Perry & Co., Schoellkopf, Hutton
&
Pomeroy,
Inc.,
Newburger,
Loeb & Co., Alfred O'Gara &
Co.,
CERTIFICATES
issued
NEW
BANK
TITLE
&
&
by
YORK
TRUST
CITY
COMPANIES,
MORTGAGE
PRUDENCE
COMPANIES
COMPANY
40 Wall
New
York
St., N.Y.
Bell
Stock
NY
The
proceeds of this issue will
used
ties
to
by
redeem
time
<
conditions,
nament which has been played for
19 successive years will not be
held
this
according
by
Nevil
year,+
to
an
-The
golfers repre¬
senting about 40 investment firms,
established
by
the
late
Charles Hayden in 1922. Since his
it has been continued as a
con¬
to
voted
this
funds
of
association
their1 work.
to
Spiegel & Peiffer, commodity
brokerage firm, with offices at
Broadway, New York City, will
1, when
P.
Peiffer,
partner in the firm,
acquires the Exchange member¬
ship of Frank H. Davis.
L. P.
Spiegel
is
the
other
the firm.
member
Treasury of bers
the
cover
any
out
'
-
•:
■:
y
ner,
will continue in possession of
trophy until the tournament
the
The
ferred
(Special
to
The
$6
cumulative
the
at
Stock
first
DETROIT,
i
Orndorff
become
present
(Special
SAN
v-
to
The Financial
Chronicle)
FRANCISCO,
CALIF,—
Robert K. Bourne has become
sociated
-with
Lynch,
Beane,
221
Pierce,
Fenner
&
Montgomery St.! Mr. Bourne'
lorn many,
years
Hannaford
of
the
&
as¬
-Merrill
connected
Talbot
as
may
•
be
had
the firm upon request.:
from
-
common
Corppany,
hurst
&
Co.,
New York
Chronicle)
with
trading department.
In the past he served in the same
capacity with James G. Flaherty
•
;
j
dealers
stock
of
issued
Inc.,
Founda¬
by
60
Luck-
Broad
St.,
City, this stock offers
and
investors
particu¬
larly interesting possibilities with
sues
attractive,
may
is¬
are
dealers,
Nominating Rule
Exchange voted
228 to 1 in favor
amendment to the constitu¬
which permits an associate
member to nominate a
partner of
his firm for
regular
of
an
tion
in
the
the
Sept. 18.
The
Exchange
new
was
adopted permitting
to
An
i
interesting discussion of the
tax position of the insurance inT
Exchange orr Oct. T.* Mr. Meisel],
dustry has been prepared for dis¬ who has been office
manager of
tribution by Butler-Huff & Co.,
(the firm for some years, will act
from whom copies may also, jbe 1
as,, alterpqt^,,op ,tl?q
.
Exchange for
1959
earned
1941
—
Amount
each
$1,000
$3,263 behind
value
each
—
accumulated
bond
interest
CIRCULAR
ON
7.5
of;
par
carryingof $100.
REQUEST
CHARLES KING & CO.
an
transfer
charges
in
times
provi¬
a
member
due
5s
Interest
"In June of this
year an amend¬
associate
Distributors
an¬
says:
only $100 instead of the $1,000 ini¬
tiation fee required.
\
ment
Retail
BROWN COMPANY
membership
Exchange
Exchange,
on
Attention
61 Broadway, N. Y.
to
WH. 4-8980
Teletype N. Y. 1-142
regular membership without
pay¬
ing a transfer or initiation fee, if,
(Canadian
Bonds
and
Stocks)
at the time of his election
he paid
a fee of
$1,000 or more.
Prior to
the adoption of that
amendment
such
transfer fee
$500 if the
was
membership cost $2,500 or more,
and a
proportionately higher in¬
itiation fee
was
required
associate
than
membership
$2,500."
ORDER CLERK-
if such
cost
CUSTOMERS' MAN
less
Can
'
connection
permanent
medium size Stock
or
Thoroughly experienced.
bring
ness.
Financial
We
are
pleased to
announce
in
some
stock
Please address Box
Chronicle,
25
busi¬
H-15,
Spruce
St., New York.
that
Mr. William Eiger
(formerly with
•
;M,y;
H: E. Scott
Company
and Royal Securities Corporation)
""V
•
1
.
and
.floo^ojf (fh$
Barets O. Benjamin.
Mr.
WATER WORKS
SECURITIES
may
Irving Meisel will become a
partner in Benjamin, Hill & Co.;
1
Wall Street, New York
City,
members of the New York Stock
request.
,
NY 1-656
especially active1
I. Meisel To Be Partner
be
had from Butler-Huff & Co. upon
had upon request.
upon
Bell Teletype:
WHitehall 4-4950
Adopt
Exchange firm doing order-desk
be had from the
firm upon request.
which the firm feels appear
particularly
from
New York
i
work.
Co.,
650
South,
Spring Street, Los Angeles, Calif.,;
members of the Los
Angeles Stock!
Exchange, have just issued an at-;
tractive sixteen-page booklet:
describing the issues of some com¬
to
Copies of this interesting
bulletin, which also contains a
insurance
30 Broad Street"
&
shipbuilding and airplane man- *
ufacturing for the war effort.
tions.
KEIPER and ZIMM
,
price
wishes
in
of securities under present condi¬
some
the
;
Views," Butler-Huff & Co. of
California,
210
West
Seventh
Copies of the booklet, entitled,
Street, Los Angeles, sees a defi?
"Ships and Planes for Uncle Sam,",
nitely bullish outlook for the sale which will
prove of real; interest
of
BONDS
fullest
Good Dealer Situation
Fairman
panies which
In the current issue of "News &
discussion
LATIN AMERICAN
with small
manager
News & Views
'
Y.
1-1203
in
nominee would
have to pay a nominal
charge of
detailed analysis
a
W;
: ;
the
dasked
"The feature of the
Dealer-Investor Interest
the analysis may be
had
thereto- was. with;
Luekhurst
&
Alison & Co., and was in
Co.,
Inc.,
charge*
of
the
Detroit
office
of
Sills,; request. "
N.
NY
Members of the New York Curb
sion is that such
prior
Trcixell & Minton.
^
v
& Weeks, Pen-, the prospects pointing to tremen¬
Building. Mr.' Orndorff was! dous post-war. profits. 'Copies of
formerly local manager for Otis &
and
New
nouncement of the
stocks,
obscot
Co.,
Teletype
Specialists
was
bond
& Co.
Curb Members
time
with Hornblower
p Merrill Lynch Firm
to
an
utility
tion
associated
2-8970
mem¬
committee of
announced
of the
MICH.—.Carl
has
cooperate
rent quotations on unlisted
public
to
Robt. Bourne Joins
HAnover
Telephone:
pre¬
Guide" for
According to
Financial
Security Dealers Assn.
Broadway, New York,
.
Septem¬
ber 1942 just issued by G. A. Saxton & Co., Inc., 70 Pine
Street,
New York City.
Copies of the
"Guide," which also contains cur¬
of
Homhlower t Wseks
is resumed,
Co.'s
Participations
INC.
Security Traders Asso¬
ciation, which is studying the pror
according to a brief discussion of
the issue, contained in "The Pre¬
<
C. W, Orasotff With
Title
other
Trust
Members New York
39
Utility Attractive
,
ma
Corporation, last year's win¬
urging all its
posed SEC bid
disclosure rule.
The First Bos¬
ton
all
•
National
x
.
to
is
extent with the
ex¬
carrying
in
■
STANY
the
death
memorial to him.
Ctfs.
L J. GOLDWATER & CQ
possible.
make
committee
to
incurred
penses
possibilities
To Be NYSE Members
Ctfs.
Co.
The
are:
ferred stock of Mississippi Power
and
Light Co. offers attractive
become members of the New York
Stock Exchange as of Oct.
best
NSTA
available
...
Spiegel & Peiffer
Co.
Complete Statistical Information
are:
McLaughlin, White, Weld &
Co., Chairman; Tom Evans, Lee
Traders
Bowling League
Winthrop Pizzini, B. W. Pizzini will start officially on
Thursday,
Co., New York City, Chairman; Oct. 1, at the Bowlmore
Alleys,
Joseph W. Sener, Mackubin, Legg 110 University Place. All those
& Co.,
interested in
Baltimore, Md., and Wm.
bowling should con¬
Perry Brown, Newman, Brown & tact William Conary at B. W. Piz¬
zini & Co. at the earliest
Co., New Orleans, La.
"J
moment
Com¬
com¬
tournament, which
annually brought together some of
was
Railway
Title
Ctfa.
John
of
2
The
Wall Street's
amount
Ford,
Chairman of the tournament
mittee.
like
.
;,the Charles Hayden Trophy tour*
announcement
a
Elevated
authori¬
and
In
Co.
Mtge.
&
Bank
Invited
Mtge.
Lawyers
Bond
com¬
In
&
5% bonds maturing Decem¬
ber 1, 1942.
"
7:
;
Cancelled Due To War
war
district
Lawyers
com¬
Members of the committee
Specialists
Inquiries
the
mitteemen and gratuity fund trus¬
organizations
Members of the Committee
pany
Hayden Golf Tourney
Because of
the
nominating
Are
B.
the
be
1-2033
other
4-6551
ESTATE_SECURITIES
Associa¬
announces
in Higginson
Corporation; William
industry and to go Kuram, Dunne &
Co.; A1 Marsto
Philadelphia for conferences land, Wood, Gundy &
Co., and
with
the
Commission regarding Gus
Schlosser, Unioin Securities
the rule.
Corporation.
entire
Boston
,
with
Victory!
WHitehall
securities
and David F. Rice & Co.
Exchange
WHitehall 4-6300
Teletype
fer
the
Edw. Lowber Stokes &
Co., H. C.
Wainwright & Co., Wm. R. Compb
ton & Co.,
Mullaney, Ross & Co.
Newburger, Loeb & Co.
Members
Merle-Smith, B. J." Van. In-
&
gen
ALL MORTGAGE
'
,-,f
;.
Halsey, Stuart
Lehman Brothers, Blair
Co., Inc., Phelps, Fenn & Co.V
&
MARKETS FOR
/•
with
Traders
a
tees for the
year 1943.
and
pointed by the association to
94.54 for 1V2S.
Security
directors,
the bid and asked disclosure rule
proposed
or
are
Nearer
STREET, NEW YORK
We
REAL
mittee to select candidates for
the
election of officers,
Exchange Commission (Rule X
15-C1-1Q), a committee was ap¬
or
99 WALL
of New York
appointment of
plete discussion of the aspects of
95.079 for IV2S. The First National
of New York bid 98.35 for
Associated
Real Estate Bonds
tion
the National
and
l%s
The
and
Bank
& Co.
Exchange
Week
STANY
l%s,
foreign
ments must be made in New York funds.
'1
One
Appoints New !
Study SEC Proposal Nominating Committee
b
Chase
AXIS
'
Teletype NY 1-5
NSTA Committee To
1967,1
1.70% for Oct. 15, 1943 to
The
Street, New York
Members Neiv York Stock
-
1
'Bye 'Bye
Telephone:
,:
the successful
maturities.
associates
25 Broad
*
WAR BONDS
& Co.
Telephone HAnover 2-4300
made, at the l%% rate and reoffering was started immedi-;
ately at prices to yield 0.50 to J
and
V
;
naming
a
price
of
100.40 for l%s, 97.50 for l^s or I
93.28 for 114s.
The award was!
1879,
Possessions $26.00 per year; in Dominion
of Canada, $27.50
per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except
Spain), Asia,
Australia and Africa, $31.00
per year.
NOTE—On account of the fluctuations
SP encer
bidders,
second-class matter Feb¬
Subscriptions
,
in
Bay, Buy
1
21 associates
ruary 25,
1942, at the post office at
New York, N. Y., under the Act of Mar.
8,
market
Halsey, Stuart & Co., Inc., and
Company,
t
the
months..-.-
AMD COMPANY
PREFERRED STOCKS
ing bids from three syndicates em¬
bracing many of the important
firms and banks
specializing in
municipal financing.
It was the
largest purely municipal issue to
reach
LicHTinsTfin
B. S.
Public Utility and Industrial
yesterday on a bond is¬
$8,286,000, the sale attract^
of
sue
,
offerings of
High Grade
Dis-f
low rate
Business Manager
September
Metropolitan
and planning in
Boston and 13 adjacent
communiT
ties, obtained close..to a record
Herbert D. Seibert,
D.
Boston
transit financing
Editor and Publisher
William
interested in
are
trict, formed in 1929 to facilitate
1
•
We
Offers District Bonds
William B. Dana Company
Publishers
Bonds
George V. Canniff
Preferred Stocks
(formerly with Taylor, Bates & Co. and Harriman
&
Keech)
Complete
are
now
Statistical Information
associated with this firm.
Inquiries Invited
HART SMITH & CO.
52
New York
/.
,
,
CRAIGMYLE, ROGERS & CO.
WILLIAM ST., NEW YORK
V
(
.
Montreal
t:,
Members
,
.Toronto
New
ONE .WALL
.
?<..:]
York
ST.,
Stock
NEW
Exchange
YORK
*
Telephone' ^VHiCehail
4-5290
i
?
Thursday, September 24, 194-2
FINANCIAL CHRONICLE
THE COMMERCIAL &
1068
PUBLIC UTILITY
INDUSTRIAL
Real Estate Securities
"
RAILROAD
If
Analysis
MUNICIPAL
contemplate making additions to your personnel, please
particulars to the Editor of the Financial Chronicle for pub¬
you
send in
request
on
lication in this
column.
*
'
t
BONDS
A
(Speclal
'
ACALIYN«®COMPANY
:<
•
v..'
4
CHICAGO
Boston
Detroit
a
Incorporated
-
••
York, Security
»-
Milwaukee
-r1 w,
Dealers,
41 Broad Street
Philadelphia
New York
>
Members New
INCORPORATED
•»>;».
•
•
New York
,,
...
,
-i
*
IE-
business in Leadville since, 1890.
DALLAS
to The
REM ESTATE SECURITIES
Sold —Quoted
Dr.
A.
;
Insurance
All Texas Utility
us
on
RAUSCHER, PIERCE & CO.
TEXAS
showed
purchases
Antonio
1941
period. The "following table
teresting:
'*■[:
,
1942
1941
$2,023,000,000 $588,000,000
R. E.
Mortgages
541,000,000
538,000,000
Public
Utility.,
344,000,000
676,000,000
Railroad
99,000,000
195,000,000
State
&
Munic.
33,000,000
139,000,000
Type of Security
Real Estate Securities
,
Insurance Stocks
A
trict
Municipal Bonds
Co.
esting facts about downtown
•
-
*
"
'
J. S.
'
!#
,
of the financial dis-r
prepared by Schlang Bros.
in 1941 contains some inter*
survey
;
considered
New
York
3-3430
to
*
The survey
showed the district
feet occupied, about 20%
space occupied by
rented
the
509 OLIVE ST.
;
j
Company,
Bank
(Special
IND:—Myran
Federal
the war,
now
in
to The Financial
Chronicle)
SAN
Due
to
than
more
amount
this
Cleveland, .Ohio.
Mr.
excess
Co., Inc., 150 Broadway, New York
City, has been commissioned a
First Lieutenant in the amphibian
engineers corps.
Porter,
&
Dick
Merle-
from
space
possibilities
future
Also, due to war
conditions, it has been necessary
for many large industrial organi¬
zations
to
expand
and absorb
not easy
properties
Some
Current
that
have
i occupancy
to the staff of Blyth &
Go.)
West Sixth Street.
what
happen to the district at the
question
is,
end of the
LOS
to
Financial Chronicle)
The
with
South
Spring
Wyeth. &'■
647
Co.,
of
Sobel & Company, 52 Broadway,
New Cgo. Exch. Member
New York
City, has been ap¬ 1
CHICAGO, ILL.—Marshall For¬
pointed a captain in the Adjutant
rest, Executive Vice-President of
General's office and will report to
Ames, Emerich & Co., Inc., Chi¬
the Adjutant General School at
cago was elected to membership in
Ft. Washington, Md. on Oct. 1.
The
Chicago
Stock
Exchange by
the Executive Committee, it is an¬
H.
Buchanan
&
Co.,
has
become
associated with Bankamerica
Bank of America Building.
nounced. Mr. Forrest has been
sociated
with
Co. since it
CALIF.—Albert R.
Wright, formerly a partner in H.
Co.,
Irving
Bank^
his
Emerich &
organized in 1911,
Ames,
was
member
Exchange.
company
The Financial Chronicle)
to
i OAKLAND, CALIF.
—
years
and
has been slow
creating earnings which
are
now
bringing traction bonds into favor
previously
railroad bonds have come
and profitable popularity
" '
request.
Result Of Treasury
F.
Bill
Wm. Cavalier
to The Financial Chronicle)
Offering
has joined
staff of Townsend,
Dabney &
the
to
The Financial
has
DeVawlt
Chronicle)
become
affiliated
for the expulsion of with Edward D. Jones & Co., 705
Mr. DeVault was
Wright, New York City Olive Street.
broker, as a member of the New- previously with Alexander & Co.,
York Stock "and Curb Exchanges, and prior thereto for a number of
Philadelphia and Chicago Stock years with John J. Seerley & Co.
order
Exchanges, and the Chicago Board
of Trade, has been reaffirmed by
the Securities and Exchange Com¬
mission, the order to be effective
Mr. Wright had been or¬
to The
(Special
ST.
Chronicle)
F L A.—
with
Torrey, Walgreen Build¬
PETERSBURG,
Lawrence
Cohu
Financial
&
R.
Leeby
is
announced
that
tenders
the
now
...
The details
.
charges of
manipulation of the market in an
'
■
(Special to The Financial Chronicle)
-
are
as
Total
applied for—$795,564,000.
accepted—$400,037,000. >
Range of accepted bids: (ex¬
cepting one tender of $20,000).
High—99.925, equivalent rate of
discount approximately 0.297 per
Total
cent
a
year.
Low—99.905, equivalent rate of
discount
a
approximately 0.376 per
year.
Average
ago
of this issue
follows:
cent
ing.
on
for
or
banks.
MO.—John Baker
LOUIS,
Sept. 21
$400,000,000,
thereabouts, of 91-day Treasury
bills to be dated Sept. 23 and to
mature Dec. 23, which were of¬
fered ori Sept; 18, were opened on
Sept. 21 at the Federal Reserve
genthau
Charles C.
airplane stock in 1935.
past 20
with
Bond & Goodwin, Inc.,
Expulsion
from the exchanges on
the
for
to realize that new conditions are
Franklin
Tyson, Fidelity Building.
years
by
from the firm upon
PORTLAND, MAINE — Ray¬
mond F. Hooper, formerly with
DIGBY 4-4950
four
a
Secretary of the Treasury Mor-
Teletype NY 1-953
expelled
par¬
Carl E.
1404
Co.,
&
(Special
dered
to
issued
.
SHASKAN & CO.
Oct. 15.
appear
during the past two years." Copies
of the memorandum may be had
.
Hutton & Co., and
& Co.
as¬
is the fourth
corporation - dealing in
securities with the public to be
admitted to membership in the
and
■
.
(Special
The
Corporation
as
with Frank Knowlton & Co., E.
REAL ESTATE
Bell
'
new
• •
Street.: Mr. Oliver was
MARKETS IN
SECURITIES
.
Transit
into
Davies
PL.,N.Y.
Interesting
ticularly attractive at this time ac¬
just
Street.
Oliver has become associated
40 EXCHANGE
Transit Co.
"Securities of the Third Avenue
Mr. Phair
(Special
TRADING
•
heretofore witlr Blyth & Co.,
was
How much of the
war.
Sobel, proprietor
SAN JOSE,
H.
National
the investing public
-CALIF.—
ANGELES,
nected
ST.
Chronicle)
rejoined
First
Co.,
.
Thomas F. Phair has become con¬
yields run as high as 15%,
SEC Reaffirms
The Financial
&
house'
(Special
approximate 2,000,000 square feet
to
Lee
cording
••
Membert New York Stock Exchange
natural
sion of the U. S. Army.
(Special
has
Scofield
>
.
space.
The
City, has joined the artillery divi¬
Wright With Bankamerica
'
•
JOSE, CALIF. —John F.
detailed memoran¬
Arthur Wiesen(Special to The Financial Chronicle), /•' *
berger & Co., 56 Beaver Street,
i LOS ..ANGELES,
-C ALIF.-r New York City, members of the
New York Stock Exchange.
James A. Trane has become asso¬
In
ciated with Fairman & Co., 650 this memorandum, .which, supple¬
South Spring Street.
Mr. Trane ments a previous study of the
was
formerly with - Fox, Castera Third Avenue Transit*'Corpora*
and Co., Barbour, Smith & Co.; tion, current operating results are
"Traction
and R. C. Wade & Co., Inc.
securities,"
In the included.
past he was an officer of Squires Arthur Wiesenberger & Co. states,
"have been in the proverbial 'dog
& Co.
'■
Inc.
to rent.
will
S.
SAN
dum
of the; propT
shown*' increased
E.,
Inc.,' 215
erty.
ordinarily
Smith, 30 Pine Street, New York
George
/.(Special to The Financial Chronicle)
,
added
equity values, are-underpriced,
considering current yields and the
of many properties well in
of 90% and has created
revenues
more
Arthur
been
"
Chronicle)
Financial
to The
ANGELES, CALIF.—Wal¬
Plettner, previously, with
Bankamerica Company, has been
ter
ab¬
pancy
&
has
Company, 300 Montgomery Street.
three
of space,
vision of the Air Force.
Baker
CALIF.—
Isenhour
added to the staff of Bankamerica
;
LOS
bonds outstanding* selling m
the present market at consider¬
able discounts, which even taken
in relation to present real estate
had the effect of increasing occu¬
Amott,
Co.
FRANCISCO,
Green
Jacob
Corporation, whose main oft
(Special
of course, these agencies
occupy
times
buildings.
Lieutenant in the intelligence di¬
Kamel,
local
was
with the First Cleve¬
now
,
Many of these downtown prop*erties. have real estate, first mortf
:
Hirsch,
Lilienthal
&
Co.,
25 sorbing space in many properties,
Broad Street, New York City, has not the choice space but.,lower
received a commission
as
First floors and lower priced. This has
John
prior thereto
and H. R. Baker &
A.
Hayden was formerly with Merrill
Water Works,
than
partner
Chronicle)
for Fox, Castera and Co.
manager
.
Englander,
and
erts
affiliated
become
fice is in the National, City Bank
-———
In The Armed Forces
Financial
tional Building. Mr. Passarino was
LANSING, MICH.—Edwin Hayden is
__—
Ernst
The
'
Mr. Crane in the past was
(Special
on space oc¬
to
National
Florida
:
formerly with Wheaton and Rob¬
Meyer and was an
officer of C. O. Robinson & Co.
land
Inc.,
Building:
SAN DIEGO, CALIF. — Irving
Passarino has become .associated
&
Securities Co., Circle
Straus
with. Fred
& v Southern,
Exchange
has
Crane
Tower.
quite
,
Members St. Louis Stock
.
Chronicle)
Financial
The
INDIANAPOLIS,
J.
with
Commonwealth through -leases to r Government
Columbia Gas & agencies and through expansion
of present tenants are:
Electric,
Associated
Gas
and
Approx.;
Present I
Electric,
and
Allied Chemical,
Occupancy
about 15% by lawyers, and only
80%
Broadway Barclay Bldg.„_~_
about 15% by the securities and
85% ; ; ,.J
80 Broad Street——
stock brokerage business. At that 165 Broadway
4"
]
82%
time, about 500,000 square feet 40 Wall Street
120 Broadway
(Equitable Bldg.)
90% +
of space was occupied by Govern¬
42 Broadway
90%
ment agencies in buildings other
Wall and Beaver_—a.
84% <
can
<
Teletype—SL 80
System
Copper, Phelps Dodge,
Anaconda
International- Tel, & Tel., Amerir
SAINT LOUIS
>
-
'
,
about 40% by industrial,
utility,, shipping firms, etc., some
of them being Bethlehem Steel,
International Nickel, U. S. Steel,
Bell
CHICAGO
Lynch,''Pierce, Fenner & Beane, Building. Mr. Scofield has recently
cupied, j./'the... financial ^district?,
been with the Bankamerica Com¬
W. E. Hutton & Co., and Otis &
may be in for better times than
Co.
-tv,.:
{':Li 1 j pany. .v.'.,it has enjoyed for many years.
banks,
5TIX''it Co.
to
the area, so called, Building,
rented, more than 20,000,000
84%
square
*
Incorporated
t
,
with Wesley Hall & Co., First Na¬
(Special
gage
of
1
•
,
possible that
wrongfully based
&
Turner,- SaChs
with
leases.
but
•'
..
Securities Co.
prior
Bros.
Sutro
to The financial Chronicle)
(Special
Government
including the 130
buildings, eight or more
in height.
■ •
■!
stories
ST. LOUIS
'■
and
Co.
the Battery,
major
2-4383
Phone—REcior
Cortlandt Street south
from
area
MArket
Of the survey, the
for the purposes
1891
Newark, N. J.
18. Clinton St.,
and
renting
Rippel & Co.
Established
prominent firm of
managing ,, agents
the financial district
This
estate.
:
is
Vr,
.
&
with
was
formerly
Co. : W
no
It
Thompson Ross
joined the Staff of Kennedy-Peter¬
son, Inc., 75 Pearl Street, All were
doubt, be gradual. On the
other hand, is it not possible that
expansion after the war in the
many industries which, will return
to
normal* production ; of "..their
products, together with the natr
ural following increase in exports
and shipping create a demand for
space far in excess of that m^de
available through cancellation of
real
Smithy
with
HARTFORD, CONN.—Calvin K.
Glover, Clinton T. King,, Stuart G,
Segar;.and William P. Spear have
occupied by Government agencies
will be retained.
If given up," it
is in*
V' will,
-—-Purchases
'
:
aovernment
•''
j
ahv increase
corresponding
the
over
NEWARK
New Jersey
,
President of the Insti¬
tute of Life Insurance, which showed purchases' for the eight mohths
of life insurance companies is interesting in that it shows the possible
degree of confidence placed in various types of securities: Naturally,
purchases of Government securities were the heaviest, with purchases
of mortgages second and being the only other type of security where
Preferred Stocks
Ft. Worth-Houston-San
Real Estate
report of Holgar J. Johnson,
The recent
SECURITIES
H
^
-
Southwestern Securities
DALLAS,
^
Companies' Investment
Occupancy Upswing of Downtown
'j Southwestern Life Ins. Co.
Dallas Ry. & Ter. 6% 1951
Check
'
Co.
Ins. Co.
AND INDUSTRIAL
Russell A.
—
>
*
.,
Building1,
previously- with
was
Kidder
M.
thereto
Com. & Pfd.
now
Mr. Kuhnlein
Republic Insurance
Great Southern Life
RAILROAD
PUBLIC UTILITY
Hague &: Co., Penobscot
Pepper
New Mexico Gas Co.
is
Chronicler
Financial
DETROIT, MICH.
Kuhnlein
Bought
MUNICIPAL
Building.
Mr;
been in the insurance
Casey has
.....
(Special
J
^ mossmmsmmmmmmsmmmmmsmmmmmammmm
,
National '* Bank
■
Teletype NY 1-592
Telephone HAnover 2-2100
Omaha
-
Association'
Fhiaucial Chronicle!
The
DENVER, COLO. — George Wj,
'Casey has become associated with
AmOs C. Sadler & Company, First
[
Seligman, Lubetkin & Co.
n'
to
lent
rate
price—99.906,
of
discount
equiva¬
approxi*
F L A.— mately 0.370 per cent a year.
(19% of the amount bid for at
joined
the staff of The Ranson-Davidson the low price was accepted.)
ST.
Frank
PETERSBURG,
A.
V?n
Deren
has
Volume 156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
1069
We Maintain Active Markets in
'
'*
i
.& Sault Ste. Marie
.
4s &
Walter
Five Defaulted Railroad Bonds
Minneapolis, St. Paul
Tomorrow's Markets
i
Whyte
a
for Potential Income and Profit
5s, 1938
Chicago, Rock Island
Circular
& Pacific R. R..
.
4s,.1934
&
4»/2s,
Says
1952
:>■
Roggenburg &
J
advance, in
Look
request
Abitibi P. & P. 5s, 1953
Brown Co. AH Issues
!
Canadian Pacific Railway
PFLUGFELDER, BAMPTON & RUST
Co,
Assh.
I"j
Members N. Y. Security Dealers,
Rail
on
i
for
Broadway, N. y.
phase.
industrials, to
Present
over.
last
action
Bell
NY
J
t
.
*'
Broadway
'
3s
Bell
RAILROAD
REORGANIZATION
1945,
3%s
1951,
4s
1959
International Hydro-Elec. 6s 1944
'
New York
Telephone—DIgby 4-4933
7v,'
1-1928
take
shows
61
Tel,„WH(. 3-3840
Teletype:
Members New York Stock Exchange
Mirin.-St. Paul & Sault Ste Marie
Teletype—NY 1-310
4s
SECURITIES
1938, 5%s
Ry.
7 }'
1978
Minnesota & Ont. Paper All Issues
;
r
y
?
t
•
.
:.
■
t
Montreal
improvement. All "stops" still aged to • keep slightly above
the previous lows, but
got
appiyV; K
down into the
Light, Heat & Power"
3s
1956,
'63,
'73
.
By
'
•
7
United Securities
105-106; levels.
'
WALTER
;V.
>
■
f
WHYTE
3 ,ef' •<
fy;<
!■:" 5
/
-
..f,
:
..'/-"jj;
A
♦-
ff
-v.'
*
■
•.
7
j ' On Sept. 12, it began to re¬
the stock market acted
press
-.
.
■.
Up to the time this went to
r
f
than
in
;
,
Canadian Bank Stocks
- -
Canadian Industries "B" & Pfd.
With the recent vastly increased speculative interest in reorgani-
peat its-performance of the
zatiPn'rail "bonds and the
sharp recovery in prices, many rail bond
period previous swing: a side drift men have
begun to recommend a more cautious attitude on the
early July rise. Yet, with gradual advances. From theory that many of these issues have
approached,-if not passed,
what might; be considered as reasonable
despite' its good action its Sept. 12 until last
tops on the basis of proposed
night, Sept.
behavior is negative rather
reorganization treatment.' In particular; the
Chicago, Rock Island &
23,
it - f recaptured;' about
2
Pacific General 4s,
than positive; by itself not a
1988, are con-^>—r.————
points, once' again' poking its sidered as.
falling in, this category ~ ——
bad sign.
head a g a i n s t the 108-110 at present
J-7:-7:
\
We maintain net trading markets in most
prices
better
any
4
*
%
}'■
*
'
v77
levels.*
According to all yardsticks
and barometers, news, as well
;
7 77,7;7 7V
•
'!
-
•
;
as
technical,.♦ the
30:;
I:;a7;
tion plan
strange thing about only $83.51
this performance is the fact it 4s,
$454.14
day it
happened during a period
first reached the 108-110 level
of news headlines,
which, to
back in the week of
July 11. say the least, were far from
It seemed like
only a question
assuring. A Congressional
of time
cations would be
.
*
■
...
*
ir.f
-
■
"
•
*
■
•
justified.'.'
r-f
-
•
but its
■■
-v
';> As the days dragged
price level did recede.
high of 108.91 (DJ.)
a
•
-
-r
lassitude
on
dled
this
Aug.
8.
It- then
back to about 108
the
Nazi
rallied
successes
of
-severity
80
V
*
••
death with the fear the base
,/,
.
:'* '■**,"
*
wouldn't
hold.; J-This pendu¬
swing from J wild eyed
August 24- the averages
had - receded to;; about
106. optimism to glum faced
Again the market was in a pessimism has gradually nar¬
critical zone, but this time on rowed.','.-'
V|.V' 1:^- -:;T.
■7
■
lum-
On
,
.
the downside.
action
was
serious
a
re¬
hold.
must
Today
It
mists
have both pessi¬
optimists arguing
we
and
did hold. But instead of
prices their * points.
What these
moving away from their lows points. are is no concern of
they just drifted sideways for mine; "I'm
primarily;: con¬
•
the next two weeks'.
In this
-- -
the
have
1st 4s,
been
cerned with the action of the
the
for
*
'»*
■
*
A
:■?
'
;>
■
confused
»■>
f After making
high
of
on
it, does
only be¬
so
it reflects the confusion
cause
a?
.
-
*4:
*
people in high places.
This, time the sell-off
-
.
that business is
i
completely at
sea
7
In
controls
NEW YORK CITY
exists.
matter
the
of
same
inflation
confusion
Congress, according to
dictum, has until
executive
r:
/
'•
Oct.
SUGAR" V
1
to
come
up
with
a
workable plan. I needn't tell
i
Exports—Imports—Futures
you
how- far
moved.
of
DTerby
4-2727
,
a
To
top it off
our
talk
just
that—talk. Small wonder the
(Continued
ir,
iii-
tv;'
■.v.)
".or--m::
*>:c1
K<
Ic o.vi' uv
-•:<!
,■
/,
Congress- has
second front remains
■
r-i:
u
and
on page
.vuvl
r--V
hl c'jIn
1087)./■
ja
llr:
>,
•
1
WALL
STREET,
WHltehalt 3-3450
underlying Mortgage Issues
Bought—Sold—Quoted
YORK'
NEW
Teletype: NY 1-2050
Van Tuyl & Abbe
of
securities,
new
the
plan..•
provided in
as
72 WALL STREET
V;
"J;'7.• - '.f,<
If the Court holds to this
1
the¬
/
'
NEW YORK
it appears that the only in¬
terest disbursement that could be
little
a
-However, they
obviously not sell at a par¬
ity with the new securities until
the - reorganization • was consum¬
mated, and would not sell near to
k parity until the
reorganization
had
progressed
stage
of
District
In
,
it
well
initial
arbitrage
20 %»; with
spread
the .possibility
high:
as
and
St.
interest
•.
least
that
30%,
it
it
has been in other
reorganizations
in
the
past.
Figuring
as
such
arbi¬
profits,
and based on
projected prices for
above
new
as
the
the
bonds; allocated
General
by
securities.
be-for-
District
the
on
Even this will
time
some
Court
will
yet
act
plan at least until
Court
ruling has
preme
made
on
one
until
earliest.
It
Su¬
a
until
tualities
dure
prices
St.
the
ex¬
when
the
to
reorganization
that
rate
prices
low;
The
year.
road
The
one
to
pears,
holders
in this
used
tured
be
can
preciable
two
also
rapid
with
the
present
no
participate
It
the
pay
is
)
ma¬
'
v
-1
i
t
'
I'
-i:i
Company, offer
Bank
Baltimore
Insurance
and
partment:7
Stock
-
Ex¬
v;
"
De-
Stocks
:
7;
.
Weller With o^elveny
(Special
to
The
Financial
LOS
ANGELES,
Weller
Stevens
have
•
■"
and
626
South
Exchange.
Both
with Howard
of
Charles
become
G.
J.
associated
Spring
members of the Los
1
CALIF.—
O'Melveny-Wagenseller
Durst,
&
Street,
Angeles Stock
formerly
were
Rath
Company,
which Mr. Weller. was manager
of the bond
1st 5s/45 Bonds 8c Ctfs..
Chronicle)
"
odd lots of
6s/45
Bor.d-3
department.
Defaulted rr
'■
of
Rust,
co.
City,
specialists in rails
1
11 wall street
WAnover 2-9175
1
c
i
k, t
a
n.y.c.
Tele. NY 1-T293
I
>
I
J
.5 \i i.r;
Bond Index I
Pflugfelder,
Bampton &
61. Broadwav7 New York
shows
Jpu.
^
■
The defaulted railroad bond in-
Ctfs.
&
1. h. roihchild &
i
-
particularly *
Md., members of the New
dex
j
Con-
changes. Copies of these memory ?
be had upon request by;
writing to Mackubin, Legg & Co.?s
new
date
claim
in
in¬
6s/35 Bonds 8c Ctfs.
Consol.
effectively
situation
current
■.
Good
anda may
Invite inquiries
or
;
«
)
we
blocks
p
Ins. Stocks
Georgia & Alabama
Payment of
,
?
on
.
'
and
the
'SEABOARD AIR LINE '
:
thereby distort the allocation
Ml
-
with
brokers
;
'
-
re¬
for allocation to
greater proportion of
4
York
interest.
,
(Jan.-1,, 1942) without
■: f
back
t
ap-,
not
may
effective
would
of
'
\
more,
in
,! Seaboard All Florida ^
,
directly
reduce the. amount of each
-and
attitude
HIGHEST GRADE RAILS
generally
cash
nullifying the plan.
interest
by
We also maintain nei markets in
bond
off interest
prior to the
'
;
excess
that
a
As
with
conditions.
way
extent.
to
Court's
"
just issued by Mackubin, Legg & l
Company, 22 Light Street,' Balti-{
which
determined
reorganizations.
i-r
wc
.
Goold
accumu¬
rate
t
.
ance
.
and
railroad
.
attractive possibilities at the pre7
ent time according to memoranda 7
this
prosperity to any
that
of .the plan
such
times
of
*■
General
Mortgage
and... other,
bonds. Substantial cash payments
make
trouble is that there
ap¬
new
believed
be
would
is
a
do
to
under
revision,
be
off prior claims, thus
additional new fixed
terest bonds
earn¬
look
than
more
pay
leasing
ridiculously
old;, fixed;; charges will be
earned
lie
appear to
Moreover, cash, could be utilized
con¬
It is true that the road is
a
only
Rock
Paul
account
011
close to ultimate
uphold
thq
remanding theSt.
Paul
reorganization
to
the>
ICC. This is contrary to the
ex-;
pectation of most close followers:
Deposit Co., Fidelity & Guaranty
Fire Corp., Fidelity-Phenix Fire
Insurance Co., Fireman's Fund In-j'
demnity- Co.,
New
Amsterdam '
Casualty Co., and Security Insur7
position to petition for, and re¬
ceive, substantial cash payments
sight. "
ing at
present
the
will
in
tinental Casualty Co., Fidelity and
ac¬
a
so
Court
due
status of
the
a1
Su¬
".ViVv";
case, the bondhold¬
would then presumably be in
ers
out
in
,
for
Supreme
the
fall
of
even
in
would
probably
the
at
early
is
not
appeal
not
that considerable market risk
in
themselves,
bonds
appeal.
being pointed
is
Court
Circuit
f
of reorganization proce¬
speculative
the theory that the
on
preme
The
and reorganization
bonds
revised
would have to be predicated.-
balance,
income 7 bond
Considered in the light of
^
will
of the
are
The
a
obviousl^*
give the bonds
speculative move. Never¬
mainly
April 1.
Commission
been
the other
or
old
to
in the possibility of rejection of
the plan by the District Court. If
the plan, was sent back to
the
the
even
not
as
the
interest which would not be
Island
not
to
amount
1, 1943.
$20.43, 7represents
the
new
'will
Jan.
the
,
4s
cases.
accruals
only
$23.77 per bond. Of this amount,
only the fixed portiqn, $3.34 per
bond, would be due and payablq
securities,
the
Generals
might logically sell between 27 V4
and 29% when
trading started in
;
Paul
in
would
to
theless, the expectation of such
move
the North
1942,
expect
at
followed in
Western
trading
to
of
;
been
bonds
calculated
wide
a
policies
have
the
by
be
the
on
interest
reorganization
securities from the effective
date of the -plan. Similar
Through
r
reasonable
by; earnings
fixed
new
on
-
when-issued
be
might; be
;
represented
the
beyond
approval
mere
Court.
would
an
*
it-i
Mtf
market.
LEROY A, STRASBUR6ER & COi
would
funds
the
bond
than *35%.
nothing
1
99 WALL STREET
current, coupon
less
lating cash at
[ LAMBORN & CO.
\
RAILWAY COMPANY
ojfer
roads
expected by holders of the Rock
Island General 4s would be that
indicated value of
summation
industry, for example,
know from day to
day
what to expect in the
way of
taxes.
So many plans have
been suggested and discarded
man-
to
these
an
can-
-
able
of
have
reorganization ^values
No
Toronto
ory,
ists
"::
about
Sept. 5, the influence of
overhanging stock in the 108110
level again came -into
play.^ The market sold:'off.
bonds
prices for the new se¬
curities, the old General 4s would
expected
■"
*
-
fi>.'-
area.„
-W '■
generally
at substantial concessions
from
On these
20
resistance
■
are
registered,
preferred
for the common.
reorganizations now on
Supreme Court: rulings
£
We
in¬
4V2S,
5
aimless drift - enough stocks
market, more specifically its
managed to sort of ease their future than its past. Yet cer¬
way up to bring the averages tain things cannot be - over¬
gradually back to the upper looked." For if the market acts
j, '
1-395
SEABOARD AIR LINE
'
Southern Pacific, etc.
around
40 'for the
and
trage
to be avoided the
level
105-106
If
trading,
for
come
,
■?
IIAnover 2-0980
NY
Montreal
.,
Specializing in
Lehigh Valley
common.
in projected
two weeks,;
giving: isigns of Yet all Jhe market/ actually
penetrating the upper level. did was to go up to a previ¬
Apparently the "signs"•*were ous; resistance point and give
merely .hopes expressed in us all lovely dreams of at-lastr
market terms, for instead of it-is-here
type, and back down
going through prices again to a base and scare us half to
Y.
Teletype
Illinois Central
.
considering that income has
sued
would
news
Bell
Lackawanna
,
before Stalin¬
some
WILLIAM ST., N.
V
New York
Jn the \ early stages of when-is¬
the face of such
.
of
And to add to all
r
;
4%s,
is
have been considered normal.
•
income
52
"
Bonds,
-
mud¬
the upper zone for more than
.7
in
deliberate
inflation c h e c.k
a
August
16, with prices remaining in
turned down.
mortgage
been accruing on the new securi¬
ties for less than a year (the pro¬
dreary news'/of the
decline
shares
and
grad and in the Caucasus.A
on
allocated
1st
HART SMITH & CO.
particularly obligations of
On the basis of past
experience,
program;
on
are
new
Sun Life Assurance
New York Central
posed effective date of the plan
Jan. 1, 1942), the most optimis¬
tic estimate of the possible
prices
for these new
securities, at least
measures.-
July
1,6 it went down to about 105
on
tax
8.36
anything
re-election
own
the delay
From
on
towards
in
the medium-priced Rail
-
$445.98 in 5% preferred stock and
all
when the bearish indi¬
of
--
,
before the District
now
Court, these .-.bonds
The
market
showed down from the
only fractionally
Under the reorganiza¬
below
Dominion Stores
.
since the
hi:-"i;
Sy2s, 1952
SI'
>-7-i
1,
the following
1^9.
datp;
1
t
,
range 1
high—
42%; low—14%; Sept. 23 price— t
42%.
;
■.
- ^ v.- .
•'
v
-,l!r
3-;(.
(
tU
f
t" tit
iiihui L
t-
»
v s.
ti
THE COMMERCIAL & FINANCIAL CHRONICLE
1070
either
Originally,
it
Insurance
Preferred
Regulation V
Stocks
Steam Shovel
try's smaller
pro¬
turing
of
care
the
but
concerns
that
it
Members
York
New
other
Stock
leading
1 WALL ST.
Telephone
Exchange
120
exchanges
-
York
Stock
NEW
Exchange
YORK CITY
soon
of
Telephone: BArclay 7-3500
Bell
L. A.
4-2S2S
Teletype—NY
their
banks
most
Gibbs, Manager Trading Department)
of
with
1-1248-49
Regulation
under
these
will
be
to
The
burse
war
decade, bankers have been made to feel very
very
uncomfortable.
Their
unenviable
position
constructed
"dog-house" of po-<$>
a
of
ear-marks
nent.
had
all
becoming
the
perma¬
;..\a
,
5
Considerably
chastened
and
considerably
more
circumspect,
the banking industry is now pre¬
pared-—both psychologically and
mechanically'—to play a promi¬
nent part in the war effort.
No
longer does it "sulk in its tents"
endeavor
or
to
tion 'Which,
more
the
all
less
or
been
Old
evolu¬
has
along,
been
Most
Guard
retired
resigned to
come
the
inevitable.
so-called
either
resist
the
have
have
or
which, for better
is now their heritage,
be¬
order
new
of life
of
or worse,
thorizing
work.
or
40%
of
3.
interest
col¬
The Government will repur¬
unconditionally within 10
days after demand the guaranteed
portion of any loan. Such demand
be
can
made at any time prior to
maturity
and,
in
not
event,
any
and
of
Executive
orders
Enabling Acts were placed in
as
early as 1940 to help
effect
expense
at
assets
close
available
Australia and New Zealand
in
i '
a
rate
gross
I
(ESTABLISHED
i
of
Paid-Up
Borrowing
has
already
tional
the
War
Loans
Committee
From April 1, 1941, to
1942, approximately $6,000,000,000 in war loans were
loan in the
portion
proportion
same
of
a
the
as
percentage cancelled bears to the
of
total
unfilled
orders.
cancelled,
termination
as
of
If
all
might
oc¬
the
war,
automati¬
would
cally become 100%.
left
unfinanced.
much in
cerns
It
helping
!
should
small
many
:
do
con¬
it
and
efficient
traders
47
only
faint
a
beginning
expansion
loans
alone
15
10,
the
ultimately
the volume
bonds
means
Street,
ination
U.
S.
V
Office
Commercial
BY
run
which
of
Thus
banks.
dustry
comes
FULLY PAID
RESERVE
;
'-%.y
and
6
ex¬
and
is
7
CAPITAL
FUND
%
.
own
,
again:
,
William
Branches in all the
principal Towns in
will not be fought
in vain.
,
E'%
.
V;,
before
needy manufacturers, who would
normally be
ineligible for or¬
dinary banking credit, but the
broadest
,
measure
V"
tion
so
that known
is
of
the
far
promul¬
"Regula¬
as
Federal
Reserve
•
Some
sions
are
of
set
as
the
forth
principal provi¬
in Regulation V
E.
MANUFACTURING
EGYPT
of
Directors
of
the
and
Stock
y
of
the
ly
October
September
1942
to
18,
follows;
ders.
war
2.
is eligible for a V loan;
Loans are guaranteed by the
actual
Service
Maritime
(Army,
Commission,
Navy',
etc.)
au¬
and
Its
his
has
The
own
of
outstanding
might be summed
"1.
banker
cancellation
ROBERT
-
B.
ber
14,
close
of
1942
to
L UNITED
}
SUDAN
stockholders, of
business
\
October
V;# -y
j,
record
23, 1942.
R. FAST,
Company.
Both
Stockholders
of
_
BROWN,
"
Treasurer.
MINING COMPANY-
the
at
dend of
134%
(#7 '/j■•cents
a
per
quarterly divi¬
share) on the
Preferred- Capita! Stock, and a dividend of
One Dollar ($1.09) per-share orr the Com-
Canitaf Stpck<- both payable on.October
to stockholders of rectird at the
rnoii
1.5,
1942
close of business
October 1, 1942.
MIXTER;
Treasurer,
GEORGE
September 22, 1942,r
*
j
Secretary.
International Minerals & Chemical Corporation
up as
borrower
~Y "Call for
or¬
International
follows:
deals
with
bank of account just as he
against losses
cancellation of contract
Stock,
Philip Morris & Co. Ltd. inc.
sufficiently broad as to elimi¬
nate any hesitation on the part of
able
tember 9,
of
record
the
at
15.
close
of
on the
1942.
of the U.
519 GARRISON AVENUE
*
FORT SMITH, ARKANSAS
•
per
Septembsr 22,. 1942,
of
One
Dollar
and
Twenty-five
share • ($1.25) on the preferred stock
Railway Company has today been
payable November 2,. 1942, to stock¬
of
record
at
15,
1942.
in payment
Cheques
mailed
to
addresses
registered
holders of
Common
i
,
/
all
the
close
of this
stockholders 'of'
of
dividend /wilL.be';
recdrdat Itheir
they appear on the books: of- the
Company unless 'otherwise' Instructed in writing,E.
Preference Stock, or
&
Cherpical
Corporation stock
Corporation
7%
or
of
Prior
International Minerals & Chemical Cor¬
tificates
A.
MCCARTHY,-.Secretary.
for
exchange to Bankers Trust Company, 16 Wall
Street,- New York, N. Y., in order that they may receive
dividend to which
business
as
C.
Minerals
poration No Par Value Common Stock should send their cer¬
COMPANY
Southern
holders
October
Building & Loan Assn.
registered holders of 4% Cumu-
York,
dividend
cents
of
declared,
United
International
.
RAILWAY
New
A
for Trust funds.
and
Holders of Internationl Agricultural
L. G. HANSON. Treasurer.
SOUTHERN
S. Government.
Stock
1942.
Earn semi-annual
regularly—
Ideal
Preferred
Corporation.
holders of Common Stock
at the dose of business on
September 28.
agency
record
to
record
of
dividends.
Cumulative Preferred
Stock, Par Value $5, of International Minerals & Chemical
Common Stock, payable Oetober
1942
15,
an
the $5 Par Value Common
the 4%
1942.
Checks will be mailed to the
lative
business on
lar quarterly dividend of 75c per share
by
on
September 22, 1942, were declared by the Directors on Sep¬
There also has been declared a regu¬
sured
share
Stock, payable September 30, 1942, to stockholders of
Series, have been declared pay-,
November 1,
1942 to holders of
October
Save
per
Preferred Stock of the respective series
CURRENT DIVIDENDS
Up to $5,000 In-
and $1
"
dividend of $1.06tV
per share on the Cumulative Preferred
Stock; AVx'/e
Series,
and. a regular
quarterly dividend of $1.12 Va per share
on
the
Cumulative
Preferred Stock,
A regular quarterly
is
4VzV*
INSURED SHARES
Dividends of 50 cents per share on
September-16, 1'942>
Protection
through
Agricultural Corporation
New York, N. Y. r
always done in peacetime;
"2.
Formerly
PHILIP MORRIS"
benefits
:
V
V
"
.
SMELTiiNG
STATES
REFINING AND
DIVIDEND NOTICES
alike,
;
>
American
Last
war
'•
„
,
the
1942.
The Directors have declared
in defense produc¬
Regulation. V
has
van¬
quished the bugaboo of losses for
through
-
t
COMPANY
C.
'
tion.
1.
Any borrower engaged in or
about to engage in work neces¬
sary for the
prosecution of the
?
production.
December only 10,000 of our 184,000 industrial establishments were
contractor
Board, dated April 6, 1942.
war
-
r
»
participating
gated
to
pay¬
August, 1942.
weather the transition from
civilian
days
; '
,
war
business
■,
Street,
However^
if the war can bring home, to. all J,'.;
INDIANA PIPE LINE COMPANY
i;,
;
,26 Broadway,, New York
of our conflicting elements;"their,
Lv:'1
,V
September 19," 1942.'*dividend of Thirty
(30) Cents per share
complete
interdependence
and
has, been declared on the Capital Stock
($7.50
mutuality of interest then; per¬ par-'value) of this Company, payable Novem¬
haps, the
clear
18th
Common
payable
to do it.
war
'
OPPENHEIM, Secretary.
House, Egham, Surrey.
Board
record
only regrettable that it
needed the
M.
the
on
y £3,000,000
£3,000,000
.
.
LONDON AGENCYKing
V,
,
its
30th
•
Manufacturing Company has declared the regu¬
-
:
the-banking in¬
into
'
ORDER,
The
,,
banking
undreamed
an
the
on
r.nd
West, Streets,
Brooklyn, New York
,
*
lar quarterly dividend of $1.25 per share on tha
Preferred Stock and a dividend of 50c per share,
of Govern¬
the
payable
Noble
Cairo
they
;
made.
AMERICAN
1
No.
be
DATED
A.
Cairo
Register
which
to
paid.
half-yearly
five
is
ment
^ of EGYPT
Head
is
(excluding Saturday)
C.
Berkeley Square, W. 1
the
corre¬
Bank, Limited, Savoy Court,
Strarid, London, W. C., for exam¬
these
E,
the
cial
investors,
in
also
Rusham
pansion in the earnings assets of
it
to
from
dividend
usual
NATIONAL BANK
system will be expected to carry,
the
complete
interested
in the Press,
Coupon No. 190
that
detached
the
D.
20 billion dollars if
is
greatly
prolonged.
war
this
service
but.
4
Coupon No. 78 must be de¬
posited with the National Provin-;
OFFICES:
throughout
of
history.
is
or
Added to
ment
in
may
most
No.
September, 1942.
Agency arrangements with Banks
what promises to be the greatest
credit
Australia,
exchanged
Talon
announced
entitled
will
ovet
I
LONDON
figures
above
banking
the
Threadneedle
29
429,050,262
1941
873,389,314
1941
1,079,884,680
1942_„- 1,559,327,173
1942
2,056,919,762
the
are
V
$248,191,668
With
for
dividend'
21/2% on the 5% • Preference'
Stock (less Income Tax) for the
year ending 30th
September next
Papua and New Guinea,
offers
'•
of
y
to
of
Wales Is the oldest
States
travellers
and
682,323,755
Obviously,
to
-
FIJI,
London,
countries..
Sept. 30,
Dec. 31,
Mar. 31,
June 30,
all
in
be
The
Manager
of New South
New Zealand,
follows:
as
been
are
largest bank in Australasia.
branches
3
Warrants
not
deposited Talon No. 3 with
Guaranty Trust Company of
when
30th
George Street, SYDNEY
and
outstanding
30, 1941
unguaranteed
and
870
by quarters since the end of 1940
June
of
cancellation, the
banks are further protected by a
step ladder clause which reduces
case
The Bank
ob¬
to
sponding Talon No. 4 and cancelled
by the Company in London as and
DAVIDSON, K.B.E.,
General
Office;
No.
Stock
have
notified
___£ 150,939,354
ALFRED
Head
ABA.
are
'
Talon
have
will
8,760,000
of
June 30,
made and the amount
Assets
Sept.,. 1941
SIR
expanding rapidly as indi¬
cated by the report of the Na¬
31, 1940-„_
31, 1941
In
;
Stock
which,
£23,710,060
<
Aggregate
.
must
\
of
who
are
6,150,000
___•
Bearer
made.
has
£8,780,000
Liability of Prop.
C
of Government bonds.
purposes
Capital
Fund
Reserve
\
New York in New York, in
accord-;
ance
with the arrangement
1817)
Reserve
2%%, if it so
wishes, either through Regulation
V loans or through the holding
war
is
the
banFof
i new south wales
earn¬
the
30th September,
on
dividend
Holders
Bearer
to
Mar.
the
The usefulness and significance <
perhaps, the greatest wisecrack of of Regulation V is thus summar¬
all times, to wit, that we had bet¬
ized by Mr.»Mark A. Brown of
ter hang together or most assur¬ the Harris Trust & Savings Bank,
edly we shall hang separately. Chicago, in an address to the re¬
Symbolic of the new sense- of cent ABA convention: "It should
mutual responsibility and cooper¬ be clear that Regulation V is good
ation being manifest is the pro¬ for the bank and good for the
gram
of
financing now. being borrower, meanwhile performing
worked out by the Government its vital and patriotic function of
and the banks to assure all war Speeding war production.
It is a
producers of adequate credit for good guarantee and under it no
factory construction or full scale contractor producing- something
which the services need will be
operation.
number
bank's;
therefore, that the
Dec.
4.
Ltd.
Glyn Mills & Co.
therewith.
turity;
guarantee
A
their
later than the 60th day after ma¬
the
shall simply be following
advice contained in what is,
the
chase
which
we
ings
pretty
lected, according to the degtee of
responsibility accepted;
:
rnent
.:
Bank,
of
this
.
been
to
on
Thus
for
proportion of its
10%
cur
deserve.
:
a
Deacon's
-
on
deposit;
Coupon No. 190 with the GuarantyTrust Company of New York,
11,>
Birchin Lane, London, E. C., for ex-,
amination five clear business days
(excluding Saturday) before pay-'
ASSETS
Associated Banks: *
Williams
banking industry, will now be in
position to employ the greater
for
orders are
richly
v/ " '
on
dividend
1942.
£98,263,226
y
a
ing bank or banks to the Service
arm
involved and ranges from
will be permitted to pass, unwept
and
unsung
into
the
oblivion
so
"specially
a
contracting for the
paid by the loan¬
the
they
in
A fee is
any event, the olive branch
is now waved cordially and em¬
phatically on all sides—and it is
hoped that the old antagonisms
j. In
and
unnecessary
them
It is evident,
is
manufacture
the
to.
interim
Holders
Ac¬
actually used plus
third
tain
TOTAL
;
WARRANTS TO BEARER
will be payable
64 New Bond Street, W. 1
/■
loans.
expanded.
allowance
connection
has wrought many changes in the modus vivendi of
banking. One of the most important and remarkable
the improved relationship between the banks of the
country and the Administration at Washington. For the better part
litical
Charing Cross, S. W. I
{ Burlington Gardens, IV. 1
(•
covering unused credits, to reim¬
Bank Stocks
American
of
Smithfield, E. C. I
present
amount
certain
these
8 West
V,
interest rate of about 2Vz %
the
A
HOLDERS
ORDINARY AND PREFERENCE
Ordinary Stock for the year ending
30th September, 1942, of tenpence
for each £1 of
Ordinary Stock, free
of United Kingdom Income
Tax,
Bishopsgate, E. C. 2
49
indications,
most loans of this type will carry
an
of
3
ultimately
be replaced
V
greatly
cording
Bank and Insurance Stocks
—
LONDON OFFICES:
it
Also,
the credit
these large producers
available to
This Week
find
also
and
Regulation
OF
STOCK
the
many
may
NOTICE OF DIVIDENDS TO
throughout Scotland
be¬
units
with
TOBACCO COMPANY, LIMITED
OFFICE—Edinburgh
Branches
mobile, aviation and shipbuilding
manufacturers have already ar¬
ranged so-called revolving credits
,
NEW YORK
DIgby
New
BROADWAY,
HEAD
coun¬
Some of the leading auto¬
would
BRITISH-AMERICAN
Incorporated by Royal Charter 1727
de¬
largest
Laird, Bissell & Meeds
and
Royal Bank of Scotland
that
useful.
Unlisted Issues
Memoers
DIVIDEND NOTICES
weaker manufac¬
or
evident
came
felt
was
was primarily
signed to take
Inquiries invited in all
Bought—Sold—Quoted
lender
or
ceeding, with all due dispatch, to
work out any needed
financing."
Bank and
Marion,
borrower
Thursday, September 24, 1942
they
are
ROBERTP. RESCH,
the
entitled.
Vice-President and Treasurer.
•
t
Volume 156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
Our
The Securities Salesman's Comet
Reporter's
Report
NATIONAL SECURITIES SERIES
Bond Series
(Continued from first page)
PEP UP!
down their
holdijrigs,of a wide list
obligations in the be¬
of railroad
so
v
A
greatest organization builders.
did
20
tend
^
The advice holds
Most certainly there, are
ago.
years
"l
than
discourage anyone enin, the Securities business
gaged
7
have
we
things
sible
to
the
PREFERRED
The: regular
share, pn
Power
quarterly
the
&
STOCK
$6
DIVIDEND
$1.59
of
Stock
of
dream
per
SI iViP30N,
Coast
Ten-Tear
•
May
Issued
under
'rreasurer
1 rust
<
Trustee,
.'V; Section
V
right
Article
Pour
of
as
call
for
redemption
barking
December
15, 1942. all
notes issued under said
Indenture, which notes
are
dated May 1,
1935,,are due May 1, 1945,
' bear interest .at £►%' per annum, and are now
outstanding in the aggregate principal amount
,
of
on
great
amount thereof
and
date
together
with
per
cent (2%)
All
owners
sent
;
and
said
notes
surrender
demption
accrued
interest
are
their
requested
notes
to
dase
-
notes
coupon
with
thereto
May
1.
coupons
appertaining: maturing on and aftar
1943, and said notes will be paid at 102% of
their principal
amount" with
accrued v interest
*
?5 1942, to such redemption datefrom November
aforesaid. Accrued interest ($6:111111 per
,
•> $1,000 note)
will also be paid to the holders
notes.
Registered sdtes. must be
b* oroper instruments of assign-'
transfer in. blank.
>
ipf registered
accompanied
i
Mnent.
."••aid
on
notes
will
1
and
on
t
December
Rew
the
15.
1942.
j
;
H.
.
York,
L.
Borden.
N.; Y.f
Since the
will
for
belief
send
that
out
/
19/ 1942. /
(
THE
ALABAMA
GREAT
RAILROAD
To
■
The
/.:;/
-
,
the
SOUTHERN
COMPANY
Stockholders
Alabama
Great
of
Southern
Company:"'
NOTICE
IS
Railroad
'./v.
.
HEREBY: GIVEN
that
I
sponsors of all sorts of
bids, to be opened /
Great
the
Stockholders
Southern
called
and
of
bv
Railroad
resolution
will
be
held
of
at
The
New
a
Dealer
and
Board
has
of
/Company in the City of Birmingham,
the
Alabama,
on
Friday, October 23, 1942, at 11 o'clock
to
consider
gage
under
the creation
be
to
time, outstanding .of
any
lien
a
physical
of
A. M.,
.new.First. Mort¬
a
dated as of November
stitute
hold
of
providing for ..the issuance of bonds therefrom time to time, limited to a
principal
amount at
C
been
Directors
principal office of
upon
the
all
1, 1942, and to
the
railroad
property,, including
interests,
rights,
Company,
and
and
fully
more
con¬
other
equipment,
privileges
as
$15,000,000,
lease--
franchises'
described
in
-
said
and
'
First
conditions
Mortgage,
;/■ be issued; of
of
Bonds
which
upon
Company's
and sold to pay or acquire
maturity,. December
now
to
necessary
retire
obtained from
the
-outstanding
the sale of
bonds
of
Series
A
$15,000,000 less $ny
the
purpose
.(•of
1943,
the
other
of
or
Bonds
not
these $9,500,000 Series
^ A bonds to be .supplied from
,' the Mortgage will provide for
■
I,
Firs| Consolidated Mortgage
Bonds
outstanding! in the hand3 of the public in
principal amount of $9,518,000 (any funds
.the
•of
shall
$15,000,000 • principal amount
authorized,
$9,500,000
principal
3lA%> Bonds, Series A. to
before
or
Bonds
25-Year
/'..be immediately issued
on
said
the terms
the
so
of
amount
and- providing
Treasury
the
other
cash);
future
issue
(up to
series
bonds then outstanding)-foi-
of; financing
properties,
(a)
(b)
the
acquisition
construction,
new
or
(o)
improvements, at not to, exceed 60% of
cost
thereof, except that in the case of
double
track
7 thereof
pot
bj
may
^dempticn,
issuid
76%
financed,
s»
retirement
theretofore
than
more
or:
under
the
new
'
take
-1
all
to-the
such
other
creation
of
id)
or
new
the
of
acquisition
the
cost
the
of
re-
Bonds
Mortgage;
to
further action In. re3p«ct.
said First Mortgage as may
or
income before.the
the
and
of
;
meeting;..including approving
provisions of said First Mortgage,
approving all action taken by the Board
form
and
Directors
such
in
the
premises;
other ^business
fore .said
as .may
and
to
transact
"properly, come
Special .Meeting;or
be¬
any -adjournments
thereof.
(The
Stock
o'clock
:
P.
M.,
reopened at
> 24, 1942.
By
*
■X
Dated
Ttansfer
10
of
the
.C. .ft.
September
will
October
o'clock A.
)
(
order
Friday,
Books
M.
9,
It
an out¬
A.
22,
of
and
at
is
will
he
'
•
Directors..
.*
•
•
McCARTHY. •'Secretary,
1942.
-
•
.
-
.
-
common
factors
out
ac¬
ticular
requirements of the Pub-
ferent
tirely
for one-to-ten
included, were
of
a
par¬
factors
whereas
set
se¬
legion. Un¬
are
of.
group
dominate,
Utility Holding Company Act.
sense
influencing
of' conditions
set
under
conditions
may
dif¬
a
an
en¬
different
group of factors
wield the greatest influence.
may
device
shares, of additional $2.50 cumula¬
would be -absorbed
J; ''" :
It
was
«'
readily.
It
is
com¬
sale at
the
The
only
used
interest
that
makes
work
a
pleasure and keep your organiza¬
going, is to acquire the view¬
point, that after all you are doing
tion
than
more
this,
we
ation, the
.
trustees
some
the situation
charged
with
that
handling
of the large forms of philan-
tnropicf funds, such as college-en¬
By dowments, are doing considerable
Switching in an endOavor to ob¬
merchandising oper? tain, a higher return on funds in¬
a
that the securities
same as any
other busi¬ volved."
v/
/ 77/7/7: v'::,7i.'7. /
only difference is, that
/ Such operations are an out¬
.instead of selling
Tangibles/ you
growth, in part at least, of the
are
selling advice. You are min¬
tapering / off 7 which
has ^ de¬
istering to the financial welfare
of your fellowmen and this is one veloped in such contributions in.,
consequence
of Steadily rising
of the most,important matters
that; 1' tax liabilities of wealthy indihuman beings must
cope wit'h.all
viduals in recent years. - :
throughout their lifetime. Then,
Selling of this nature has been
for this reason the
only thing that
any
sincere,
honest
individual visible; it is: contended, in certain1,
The
ness.
,
,
who
is
could
possibly
whole
mind
task of
ties
engaged
in
do
and
business
our
is
to
effort
put
into
-
his
the-
selecting the right securi¬
to, the
best
of
his
ability/
After you select what
you wish to
sell, then there is the job of find¬
ing the market, which is an in¬
teresting task if you go about it
scientifically.
high-grade
railroad
and
utility
bonds where the yield has become
"extremely/small.
/
The
to
vert
portions
portfolios into
high-grade preferred stocks./ : "
7 Where^such bonds
appear on the
market, however/they have found
ready takers among institutions
which.,are Reeling.the dearth, pf
Then, z when' you
market, comes /hew offerings.
the job of convincing .others that
they should do business with you.
have
found
All of this involves
planning and
effort.
The job can be done
by
an
organization
interest
as
'
your.
in
Henry
"Couldn't any
that
what
still
it
Doherty
more
is
takes
doing;
put
V:
;
to
a
King
h£lp' hustling
York
circular
&
the
by
re¬
las.
These formulas sor measure¬
applying the lessons
experience
be
to
problems.
confused
fetish
of
They
with
5s,
due
invest¬
are
the
not
to
particular
Securities &
Re¬
Corporation under its Di¬
recting Economist, Dr. Fred It.
Macaulay, has contributed exten¬
sive
research
studies
to
the
issued
Co., 61
by
Charles
Broadway, New
City, from whom copies
be-had upon request.
may
'
;"
dealer," is the
of
am-1
Selected
Company,
American
indicators.
The company's wellInvestment Timing Index
outgrowth of this work; In
known
is
an
contrast
to
the
ishes; which
E.
"one-factor" fet¬
are
common/ this
so
H.
In¬
of
sponsor
Shares,
Inc.
Details of
spect to
be
Total
(2)
^Investment
(4)
Pro¬
Construction
Con¬
will;
shortly.
number
outstanding
of
j
shares
are
of
Se-;
currently
reported to be in.
of the number
excess
outstanding
/ y
of the end of last
year.
as
$
Purchases
$
■
,
balance for Affil¬
iated Fund in the period between
on
July 10 and Sept. 5 of this year
to
$2,984,288.
These
purchases brought- the "invested
amounted
position"
the
(J); Industrial
dealer relationships
lected American Shares
Grade
Bonds,
company
at
retail.1
further steps with re-i
announced
from
duction,
division ofi
Sons, Inc., which:
latter firm will sell shares of the
investment
Index is made up of eight
compo¬
nent series
covering (I) Medium-
Confidence,
Rollins &
de¬
velopment of comprehensive trend
stock
of
the
Fund's
(leverage)
103%
as
common
up' to
of
148.9%
last; May when
of reinvesting cash
begun. The remaining
(Continued on page 1084)
program
assets
was
tracts
Awarded, (5) Bank Activ¬
ity, (6) Technical Trend Indica¬
tor, <7) High-Grade Bonds, and
(8) Stock Yields.
,;/;7
'-In
the '
Sept.'
Investment
17
issue
Timing,
of
published
tion of the Index and of its
eight
It is re¬
Custodian Funds
;
components is discussed.
ported
now
that
all
indicate
upward
nent to
a
eight components
basic,/* longrterm
trend/
The
last
compo¬
was that
Stock Yields and the date of
the signal avas
Sept. 16, 1942,.
bulletin
the
also
points
intermediate
out
trend
of
Jstock prices is 'indicated/afc being
down.
7.///..
This
forecast,
taken
to¬
bonds
7
Busiitess Men's Investment Bond Fund
Medium Priced Bond Fund
Low Priced Bond Fund
Speculative Bond I'und
give this signal
of
that
1959, offer
for
objective
Selected
financial "wizard."
some
National
search
current
.
interesting possibilities, according
it;
than they could
help breathing."
Co.
Frequently
standardized
ments aid in
The
Interesting Situation
:Brown
deal
!
investor/
with the Mid-Western
is
,
of
best
for
Last week this sponsor announced;
the merger of its retail sales forced
prices.
weekly by
National.Securities &
tendency Research
Corp:, the present posi¬
con¬
thus far has been to seek to
investment
vestments
ducing it to certain basic formu¬
7';///•/'■'/
indications
report
"Best
decisions
/
Those who follow
closely
of
or¬
before forming judgments
the probable trend of se¬
i
.
Investment Company Briefs
volved
The
(
shares.
pany
constant
bitious
a
to
for purchasers of investment com-1
technique of reaching investment
the
selling securities;
mean,
businesses
from
Seeking Higher Yields
other
thing that we
suggest that will help rekindle
the
derived
some
ganizations to weigh and consider
of the pertinent factors
in¬
curity
price of 51V4, were to be
augment
the
working
capital of the issuer.
A change will help you
and regain your
perspective. / ,:r/'
/.:/•'";; 7/;'
clear your mind
can
be
on
all
ment
to
forecasting
based
endeavor
bona fide investment research
of
Funds
is
damentally unsound.
as
expected that bankers
any market
which
.
or
.
./
just plain
one
handling the financing would
One of the first things we
would
/ open subscription books today.
suggest, if any of our reader's
This is the second block of the
belly has begun to fill up to the
issue to be marketed, an equal
brim, and he Is getting ; ready to /
amount : having / been
offered
call it a day, is to take a
trip, and -! publicly several months
ago. ;
go away from the' business for a
any
3
point
"remarkable
curity price trends
der
Government job and live off 'the
taxpayers; thereby adding to the tive, convertible preferred stock of
Mills
Corporation
general confusion, or he can stay Burlington
Saturday, October
/•-.■•
Board
close
of
that/the
Inquiry in advance of the actual
..offering indicated that the 50,000
the doers and continue his
to
——•4
•
Burlington Mills Offer
get /a
movements
Thus, the
"crackpot"
to
factors but ignores others is fun¬
Alabama
Company
the
the
of
able
are
instances
j
-
indicators
hiiQinp^4 in thp rifVit wavITp
DylSiness
come
broad
device
Obviously,
rignx way., lie Can
" A
'11*
either ----- up with the *
join
barkers;
throw up his hands and
quit/be¬
their
———
curacy" in the operation of their
particular fetish.
f
'
recapitalization plan
by the company to
a
000,000,./ running
years/ originally
pnn
in
down -f
is. there left for any man who still
desires to conduct his securities withdrawn for private sale.
Special
a
:
Meeting
.,
limited
are
or
fantastic
.correct half of the time.
Serial notes in the amount of $5,-
pletely.
//./
most
in¬
,
MEETING NOTICE
"the
the
an
financing which is
undertaken
lie
"averages"
only two directions—up
—even
few weeks. Get away from it
RAILROAD
Vice-President.
September
current
meet the
of
present, day
investment business.:
v
.
of security price trend
forecasting there are many
Chart patterns, time cycles, even sun
spots have their ad¬
herents who believe with almost
religious fervor that the full solu¬
tion to the delicate and
complex problem of forecasting lies in one
of these factors to
.the exclusion of all other factors!
/
■
advancement
the field
Company calling for for
forecasting trends has the
financing.
mathematical probability of being
thirty-year bonds.
gage
Knowing all these things, what
accrue
COMPANY
V
by
the
effort.;'//' ;*+•/://•;///:''7;< /;///
among
to
cease
COAST " LINE
■' 7
7-V:
?
after
ATLANTIC
J;7)
-■
,
Interest
■-
.
end
Central
about the middle of next
month,/
on its $14,500,000 of first mort-7
.
of
is
vitation
anything of value
or
quarters, bank¬
fcevej-al - groups • already have
continuallyv find;
institiw .been gathered together to compete
material
country
war
t:
.v
the
the
re¬
? 1942,
to
December
15,
1942i—one
month and fourteen days—$6.111111 per $1,000
note), at the agency ol the Railroad Company,
Room
900,
71
Broadway, In the- Borough of
iManhattan, City and State of New York, in the
It
company
class
of
Bldg., San Francisco
its projected
on
growth of
date,
taccompanied
by
ownership
covering accrued interest from No¬
Certificates
vember
1,
bids
doing busi¬
in this country, there are few
pre-
said
on
Maine Power
for the
to
a
Again
from discussion in in¬
month passes without the
other <
/ primarily
who
mass
that contribute
to
premium
of
two
the principal amount thereof.
en
of
appears
bunders,
Russ
::
TRENDS WITHIN TRENDS
In
go.
market
ness
,Accordingly, all of said notes are called for
redemption on December 15, 1942, at the prin¬
cipal
the
at
Broadway, New York
Investment Trusts
are
fault with the established
tions and methods of
$11,317,OOP.
Bald
vestment
we
busy building, creating ond develoDing, while the other class
itself
letting
Maine
/ Judging
is
manifests
Much of this busi¬
going to be more than a
little, disappointed if the current
One
request
fetishes.
ers
the barkers.
as
about
Central
Nation,is dividing itself
classes .of- people.,. One
could : probably be desig¬
group
May
1,
1935,
between Atlantic
Coast
Line
Railroad Company ana
Guaranty
Trust
Company
of
New
YoTk,
Trustee,
notice
Is
hereby
given
that
Atlantic
Coast
Line
Railroad
Company
has
daterminjd
to
^
tion
two
group
reserved
under
of
that
Indenture
upon
CAPITAL STOCK
-
the market reaches up
wnenever
!'
it/ almost
120
to/values fixed for disposal of a
given issue there is little hesita¬
operation
as
advan¬
as
Prospectuses
-
NATIONAL SECURITIES & RESEARCH CORPORATION
"swap¬
ping" with the aim of improving
the quality of issues held.
But
without
business
7
has taken the form of
ness
every
nated as the builders and the
the
qarrier liens.
affect
the
into
1945,
May
that
Company
and
of
Near', York,
Company
securities
Sorhetimes
Notes,
/
to*'
1* of
dated
i
Company
5%
1939,- due
May
1,
indenture, dated as of
sa.d
the
continued
have known it.
..
Railroad
Trust
between
Guaranty
OF
the
of .arbi¬
.
volume
your
threaten
1',
1935,
Pursuant
'
Line
Collateral
dated
1,
HOLDERS
future,
a
COMMODITY CORPORATION
however,
Series
little to the recent substantial
in secondary and lesser
no
tongue in your cheeks
hand, there are the
many so-called reforms that the
SEC has promulgated within the
past few months
that
directly
of
TO
Atlantic
pos¬
On the other
REDEMPTION NOTICE
/ /.
which
practically
about;
having
National
been
declared
lor
payment
1942, to holdera of
record at the close of business October 15, 1942.
ALEXANDER
of
been,
to trade themselves out
enterprise.
In
other
words, it is no longer possible to
has
Company
November' 2,
future
not
Income Series
.
Low-priced Common Stock
'j
FIRST MUTUAL TRUST FUND
tageously as possible.
/ Such operations have contributed
..the
business
Company
dividend
Preferred
Light
decision^
ernmental
DIVIDEND NOTICE
has
appreciable volume
trary / liquidation.- • On the con¬
trary such interests have sought
feel that any confidenceplaced in the many gov¬
be
can
Sfi
'.' There
any
analytical
economic facilities
of
country, that if is ,no longer
efforts
7 the uncertainty of events beyond
National Power & Light
best
the
today hamper our
is not difficult. There is
1
of the
power
1
sides.*//
it
that
—~
the
which
/
-
factors
more
minds to Accurately forecast. PoW
iticians have made such a mess of
known before.
ever
V yTo enumerate just a few of the
5
true today as.
as
even
to
Low-priced Bond Series
Preferred Stock Series
"There is no need to make a drudge of yourself. You should be.lief. that, many roads faced in¬
jumping keen about your work that you couldn't any more help
creasingly lean years ' what with
hustling than you could help breathing."—Henry L; Doherty/-: : •'*, 4
•/'
competition
This advice was given to his key men by one of the
growing • from- ' all
country's
•
1071
,
.
Bi
*
.
.
,
.
.
.
.
.
B2
»
.
•
*
.
•
■
B3
B-L
•
preferred stocks
Income Preferred Stock Fund
.
.
.
K1
.
.
.
Appreciation Preferred Stock Fund
.
k2
common stocks
Quality. Common Stock Fund
.
•
•
51
.
Income Common Stock 1
un^
Low Priced Common Stock Fund
.
•-
52
.
Appreciation Common Stock Fund
.
53
.
.
Si
gether with the longer-term fore¬
cast, anticipates the familiar phe¬
nomenon
trend."
prove
of
"a
-Should
correct,
proaching
an
trend
both-
within
a
ProspetliLs
may
be obtained front your dealer
or
The Keystone Corp.. of Boston
forecasts
the market
is
50 congress
ap¬
ideal "buying spot"
fron
street, boston
THE COMMERCIAL & FINANCIAL CHRONICLE
Steel's 174
Peacetime research in U. S.
GOSH, a days! A camelahas no privacy in
meadow her own
these cow can't call
the desert! Even
a
crab
on
the beach may
of American
full-fledged airfield over¬
get chased away by a crew
soldiers building a
night—thanks to
a new
invention developed
Now any
can
be
erous
an
airport,
sand
This
piece of fairly leveled ground
or
even
sible for the nation To
May aunit of United StatesSteel
broke a world's
by the multiple launching
of four United
steels that make our
more
bombers
our
destroyers
a
destroyers' turbines
powerful. New steels that help
make
States destroyers
New
rigorous mechanized warfare.
for
were
in 50 minutes. In July three more
launched, by the same company in
brief 28 minutes... these are
toughest
on
earth.
their
sorrow
UNITED
a
STATES
backbone of steel.
ing mat made up of hundreds of light¬
FACTS WHICH WILL NOT GIVE
AND
together. One company of soldiers can as¬
semble
the
or
dismantle it in
a
few hours. And
portable airfield travels right up to the
front, by truck,
One top
railroad
or
barge.
Air Force officer called it "the
Since the
steel
STEEL
AID
COMFORT TO THE ENEMY
war
began in Europe, America's
annual
capacity has increased nearly 8,000,000 tons.
This increase alone adds
more
AMERICAN BRIDGE COMPANY
steel than Japan's
BOYLE
yearly capacity.
MANUFACTURING
CORPORATION
DIVISION
year's greatest achievement in aviation."
This invention has been made
available to
important steel fabricators—so war pro¬
duction will be
speeded.
A
new
way
of making bomb shells (developed at a
by other plants) speeds bomb production many
over.
..
.
..
•
UCTS COMPANY
.
•
AMERICAN STEEL & WIRE COMPANY
COMPANY
•
CARNEGIE-ILLINOIS STEEL
COLUMBIA STEEL COMPANY
•
.
CYCLONE FENCE
FEDERAL SHIPBUILDING & DRY DOCK COMPANY
TUBE COMPANY
plant of United States Steel and now being adopted
times
,
bring
only America at peace—but
America at war—has
weight perforated sections that lock tightly
in addition to other
ships launched singly and in pairs.
safely home. New steels that
tanks the
Our enemies will learn to
that not
new4'magic carpet" is a steel land¬
made it pos¬
get the right steels
laboratory organizations has
though it's treach¬
boggy pasture.
In
record
our
by U. S. Steel research.
Thursday, September 24, 1942
.
OIL WELL SUPPLY COMPANY
•
»
•
NATIONAL
SCULLY STEEL PROD.
TENNESSEE COAL, IRON & RAILROAD COMPANY
UNIVERSAL ATLAS CEMENT COMPANY
.
VIRGINIA BRIDGE COMPANY
United Stales Steel Export Co,, Export
Distributors
Volume 156
Number 4110 3
THE COMMERCIAL & FINANCIAL CHRONICLE
of
M.
the
-V;
;
\v
:By HENRY W. KOENEKE
'■
f;
President, American Bankers Association, arid President," Security
;V Bank of Ponca City, Ponca City, Oklahoma ;
War
last
:
war.
of
The events of the past year have been the ^ most dramatic and far reaching in the
history of the American Bankers Association. When this administration of your Association
'began 11 months ago, we were still a nation at-peace, though we lived in a world at war.
shadow of
Chicago, Sept. 28 to Oct. 2.
hearts
that
knew
we
A review of those deliberations would indicate that in
by
Board
in
type
of
the
fuelless
methods
con¬
accept therri, make the
therh,
and
as
we
substitute
instance,
in
our
activity, service to
deferment
building
too ' numerous
we were
to
greatly increas¬
ing the supply for essential
cutting off supply for
our
turn^
time,
For
a
of
be
may
expected
did the last
as
we
can.
Association
our
members
to
increase
rather than decrease. With
a
grow¬
ing transporation shortage and in¬
meatless, sugar¬ creased movements of troops and
days, and, in ways supplies, and the utilization of
and
mention,
shall
we
best
He wrote:
less,
hastily arming to defend itself i should defense become ; necessary. The
hung over the deliberations of our last general, meeting, the. convention in
was
war
given
struction .except that
indispens¬
able to the prosecution of the war.
We had gasless,
^
The nation
was
Industries
every
,
v.
this
Baruch, chairman of
"We had instituted
'
f
of
some
Bernard
1073
uses
by
non-essen¬
hotels for
war
workers and army
personnel,' it is obvious that large
meetings
tions
.
of
will
convention
proporr
be out of the
question
shall have
tials..
Had the war gone on
for the present.
So we
during the bitter winter of; another year, our whole civil pop¬ to substitute for such meetings
ulation > would
by every step,' they have initated' nec¬ T917-18"~the" people in the North
have r gradually gatherings of a smaller and differ¬
resolution, we expressed our de- essary wartime banking service, suffered•'- heatless Mondays with: emerged in cheap but serviceable ent type, such as the clinic type
V *
termination to
uniform;
they have been ready ahead of fires either banked or out.
Types of shoes were to of meeting devoted to a single or
Al¬
m e et
what¬ time to ; render'-; whatever;,'assistt
though motor cars were not in! be reduced to two or three.* The; limited number of subjects.
In
might
at
come
many
our
moment.
any
unofficially
ways,
In
.
ipated the needs of the nation at
.
And
and
-
trials
ever
should
to
come
\ and
us
to
has been needed. ;.They rep-;
ance
resent the
change-over from:.peace
service to war service. *'They also
deal
*
•
y
7
with
represent the banks at their best-
them
effec¬
alert, flexible, able to anticipate,
tively.
-S
As the
and
ready to meet everything
re¬
'closing •"•ex -' quired ; in their v area of activity.
p r e s sion
of And they represent, too; the ef¬
that
by
fectiveness of the
conven¬
tion
said
we
vided
resolution:
by
the
leadership
American
pro¬
Bankers
manufacture
uniVersal use, the production ofautomobile tires was drastically!
mobiles
of
to
pleasure
auto-;
lieu of
our
annual convention the
Flaps from! membership will express itself in
reduced as .to number, .of styles! pockets and unnecessary trim in: regard to the business and policies
and sizes.
The same thing was1 clothing would have disappeared.' of the Association
through the
Steel had already been taken out
true of agricultural'"
Executive Council.
The Execu¬
implements;
;was
cease.
and machinery.
The variety and of women's corsets."
styles - of • clothing was ' likewise!
The
deprivations
curtailed and the
ated.-
A
brief
quality deterior-; in the last
but
war
will
tive Council is the
experienced
undoubtedly
sharp picture be multiplied during this
next to the
in convention.
V (Continued
But
one.
governing body
membership assembled
It consists of
on
page 1081)
Association and the state bankers
•
"We
Of
d
for
1940,
to
liberty
have
and
justice for
unbounded faith
the
all.in
the
of
enduring confidence in the
ability of the American people to
of
defend
and
and democratic institutions."
And in the address in which
-acknowledged
■presidency of
tant
in
for
the
govern¬
for
programs
delivery of
supply, impor¬
winter's coal
needed
their respective
on
during "such" times
Therefore, in
...
-plans for the
everything
may
to
us
reservation—
be changed to
do
our
defense
our
ahead, we have
year
fundamental
nation's
developing control of
as
,
meas¬
due
in
part
in
entirely to the
banks,:- which
have>
,
chase
of
their
all
government
account.
own
bonds
And
■'
for
There
the
render
other services in the off¬
the
as
war
goes
on
formed
is too great when¬
the nation's interests
ever
upon
Uncle
us
Sam
in
as
now
are
im-
depend
past, for
can
the
this organization is still the Amer¬
ican Bankers Association."
Two
months
later
the
sword
fell upon us.
We are now at war
in all the corners of the earth.
Ordinarily it might be expected
that in
a
message like this one the
events of the Association's
year
-would be set forth in detail, show¬
ing
how
stepped
far
to
up
:But there is
its
a
no
program
was
win-the-war pace.
point in doing that
herein since those dramatic events
chronicled and pictured else; where in this convention in print.
I should like, however, to
say that
are
the American Bankers Association
and the banks themselves have
:
amply fulfilled the promises made
'in
the
words
quoted.
Indeed,
they
were
already
performing
outstanding service to the prepar¬
atory war needs of the nation
•
when
these
things
When the blow fell
were
we
said.
were
al¬
ready deeply engaged in the proc¬
ess of helping the
nation to arm
is
time
a
citizens
do
cost
service
of
not
when
patriotic
to
their
country.
other contributions to
the crisis of
We
upon
banks
can
the
so
well prepared for
when it
war
look
back
manner
have
risen
in
to
came.
with
pride
which the
will
of extra duties yet
they will .also consist of
consist
unseen,
the omission of
been
to*
the war-time
*,T-v:.'£ '"-•v.
"■
i
to current
:;'c•'
'• '•
'
needs. Production
and sub-contractors, made in
conjunc¬
Government, expedite maximum output.
constantly adapting " their services
;
total
war
doing their
to
utmost to
meet
unprece¬
help speed the
effort.
things they have
to
doing and
This Bank
joins the other banks of the Nation in pledg¬
ing cooperation
to
the Government and
to
industry in the
primary job of fighting this
war to
victory.
business community, to all of the
population, as we are learning,
through the effect of priorities on
business, through shortages of all
kinds, through - the cessation of
automobile and other manufactur¬
ing, and,4.hrough the rationing of
tires, gasoline and sugar, and, as
we
shall
ing to
Bankers Trust Company
learn, through the ration¬
come
NEW YORK
of other
ing,
possibly,
transportation.
things, includ¬
the rationing
of
In common with
other business and social
organiza¬
we have
already felt the re-
tions
trictions
of
war
in
many
ways.
One of
supplies,
an
wartime
transporation authorities
omission asked by the
themselves.
To many of us such experiences
They have performed with
marked success every assignment
given to them. They, have antic¬
last
gearing their services
are
accustomed
substitution of other activities for
them.
That applies to the entire
are
sion.
demands. The banks
While these contributions
occa¬
every
.
dented demands.;.
war
efforts.
them, for instance, is the
inability to hold the customary
itself. And because we were so en¬ conventions,
important as such
gaged, it can be truly said that at gatherings are, an omission made
-no time in their long
history has necessary in order that adequate
either the American Bankers As¬ transportation be available for the
sociation or the American banking movement of
troops and military
system been
are
stop to count the
Its preservation is their first con¬
sideration.
The banks will make
many
effort.
j Individually, and through cooperative effort, the banks
these.
This
;
to contractors
tion with the
which they will do just as well as
the record shows they have per-'
•periled.
.
vj'i.-'-"T'• :»*'
loans
and
fort,
or money
pace
to war
quickly adjusting operations
ing which banks may be asked to
are
war
win it,
Credit in ample volume at low cost aids industry in
p.
to the armed forces.
men
;;; to
requirements of Government and of industry.
;
things, the banking fra¬
has contributed its full
share of
of survival
above
other
ternity
a war
closing ranks behind the
converting production
keeping
sold 85% of all the bonds
sold),
and, of course, the continued pur¬
en¬
The
program.
almost
of.
Xhis is
;
.
Industry is winning the fight against time by all-out speed
the
sale
of. war
savings
(the success of which has
service
,
tite entire Nation, is
consumer
anti-inflation
an
welfare of the country transcends
all else;
No sacrifice of time, ef¬
•
'
assistance to the government
ure,
are
"organizations
•
War of Survival
aliens,
promotion
execution of
been
its-citizens and
able
in¬
bonds
Association, I
your
•to render patriotic service where-
<
It
enemy
plants, assistance to
credit
emergency * hours.
The government must
depend on
this
at
•
"These
ever
rescue
is- impressive.
lending
next
I
•added:-
;
the
*
organization- and
tion
election to the
my
list
ment
to
democracy
preserve
and
*
financing of war housing, han¬
dling of payrolls of war produc¬
policies
government
"
goods orders and the expan¬
sion
of manufacturing facilities,
rights and
effective
to
programs
France
war
privileges which they enjoy in this
free republic. We pledge our full¬
support
in
the national de¬
as
ing of the funds of
have
end
began
cludes the identification and freez¬
capacity of this coun¬
try for meeting to the fullest its
obligations in this trying hour. We
est
of
The
re¬
and
preserve at any cost the
feat
Dunkirk.
We
the
soon
service
Harbor,-but
fully revealed by the attack
Belgium and Holland, the de¬
on
principleso f
sources
as
This
Pearl
was
acy
holds
fast
after
fense program was initiated, when
the nature of the German menace
privilege
living in a
e m o c r
which
Henry W. Koeneke
not
erlastingly
e v
grateful
; the
associations.
are
not
entirely
new.
During the
experienced a sugar
control, and business experienced
war
we
both priorities and price controls.
'
Member of Federal
Deposit Insurance Corporation
116
i.;
THE COMMERCIAL & FINANCIAL CHRONICLE
1074
win the
President Roosevelt Lands Bankers' War Record
in a congratulatory letter to the members of the American
praised the bankers' "record of accomplishment" made during the past
but warned that "we have only just begun to fight." Saying the "convention in pri$t"
was helping to conserve vital transportation and other facilities, the President told
the bankers that, if those on the home front are to be worthy of their fighting forces, they
"must carry on the battle of production, wage war on inflation, combat complacency and
year
plan
He added that bankers, as v-
fear."
community
and
unique
can
leaders, "have a hearts, For over a year they have
opportunity to promote played a distinguished role as
that unity and teamwork Which volunteers in the promotion and
sale of War Savings Bonds.
is so necessary to success."
They
*"• The President's letter
prepared
for the. "Convention in print".was
addressed to Henry W. Koeneke,
President of the A. B. A., and is
Mr. Koeneke:
"Please extend my
gratulations
American
on
tion.
the
to
the
tion
It
is
of
»:,v
•
con¬
members
of
Associa¬
Bankers
conven¬
appropriate that the
year
your
of historic
and
fight against inflation; not only
through the sale of savings bonds
to the people but by putting into
effect
restrictions
on
consumer
credit and combating unnecessary
expenditures of all kinds.
have
we
"The bankers of America have
been
indispensable
They
in the
must
carry
production,
the battle
on
wage
war
on
of
infla¬
great obligation and great op¬ tion, combat complacency and fear
portunity to serve our beloved
a
with
Country in this hour of peril and
they have answered the call to
service joyfully and with stout
\T
so
necessary
"With
the
and
sacrifice
spirit of courage
same
which
with
meet the enemy
on
they
land and
YOU
cah't buy U
"Involved
values
too
in
this
conflict
precious
to
be
wishes,
congratulations,
again
and
'
■
,
•
are
J
.
"
"Sincerely yours,
ex¬
(Signed)
.
r
,.
.
.,
FRANKLIN D;v ROOSEVELT."
By The Honorable HENRY W. MORGENTHAU
/:/>
Secretary of the Treasury
n0>n
sea
v
We have come through a year of stress and strain since I last had the
privilege of
addressing the American Bankers Association on the subject of our financial and economic
problems.,.,
V.
When I spoke to you in Chicago last October,
coming • events were already casting
their shadow.
At that time, and in the light of our financial experiences in the former
World War, I reviewed the perils of inflation facing us, and I asked
you to constitute
yourselves
of
sentinels
the
na-^-
banks and $19,300,000,000 m the first quarter
your own communities, to guard and an average of $12,800,000,000
against any private encroachment in 1941.
These results would not have
upon the resources of materials
in
tion,
of
or
your
credit
needed
tional effort.
If
this
such
own
for
the
na¬
v/vvl.
,
not
were
a
moment
deadly seriousness
for
been possible without the volun¬
tary
cooperation
of Americans
our
State
arid
of
millions
representing every
section, every occupa¬
,
nor has the Government
been able to draw upon such
ment,
this effort without
thought of any
ever
compensation except the knowl¬
a wide variety of funds.
We have edge that they were helping their
not
only raised
$13,000,0()0,000 country in its time of greatest
from taxes, but we have also bor¬ need.
rowed a net amount of $3,000,000,I have said before on repeated
000 through the sale of Tax An* occasions that we at the Treasury
ticipation Notes.
We have not are deeply grateful to the Federal
only resorted to the conventional Reserve System and to every in¬
forms
of
borrowing from
the dividual banker who has helped
banks and regular investors, but the program of war financing, and
have
we
enlisted
also
additional
types of securities, and we have
sold War
of
slackening the determination
American
the
this
and
taxes
not
people
and win it
war
our
handcuff
win
Our
to
outright.
borrowings must
hands already
the
I should like to express my thanks
once
more
for a splendid exhi¬
bition of cooperation and patriot¬
ism. ; v":.
"; ■:
You would, I. suppose, like me
to give you some guidance as to
the methods by which the Treas¬
to raise these truly
I wish that I could
ury proposes
colossal
give
sums.
that
you
guidance,
but
frankly,
than
the
a
none of us can see more
few months ahead through
murk
of
this
dictable of all
most
unpre¬
Besides, the
wars.
decision in all cases does not rest
with the Treasury alone.
I would not venture to
guess,
for example, what the new tax
bill will
that
yield, although I know
the
American
ready for
are
pro*
In fact, they are ready to
gram.
bear
people
courageous tax
a
even
greater
burdens
than
the
Treasury's minimum proposals
$8,700,000,000 in new revenue
Would impose upon them. I would
of
not hazard
of
guess as to the future
a
rationing,
deeply that
although
we
I
feel
shall have to
ex¬
tend the scope and the
rationing
ended.
I
may
before
•
severity of
this year has
•.
however, offer what I
call broad hints, based upon
can,
the principles whidh 'we have
fan
followed*' in
financing
and
upon
so
wartime
»our
the
dimen¬
sions of the task in which
we
are
now
engaged.
You may take
that
shall
it
for
continue
granted
to
seek
funds both from current and
accu¬
we
mulated savings.
Savings Bonds to some
In the field of
Yet we cannot afford to con¬ taxes, we shall follow the enact¬
20,000,000 Americans to a total
$6,000,000,000 in the fiscal year gratulate ourselves at this critical ment of a new revenue bill with
just ended.
stage of the war.
Whatever was renewed efforts to make the col¬
Without wishing to seem com¬ accomplished in the past fiscal lection of taxes more effective.
placent—for complacency is as year is of little relevance when To this end we must intensify the
of
Utf
dangerous as a
dozen
of
the we remember the size of the
enemy's mechanized divisions—-I financial as well as the military
think it only right to call atten¬ job ahead of us.
*
>
It would be carrying coals to
tion to these unprecedented bor¬
Newcastle to explain to the bank¬
rowings, so smoothly carried out
that the country as a whole has ers of America the magnitude of
hardly become aware of their the financial problem confronting
Government
this
year
in
magnitude.
We are surrounded our
at this moment by economic as meeting the many and urgent de¬
well as military dangers, yet it is mands of the war. You know that
Accounts Opened With Amounts
cause
From $5 To $7500
for
inflation
Interest From The 1st Of Each Month
BUY YOUR WAR BONDS AND STAMPS HERE
out
of willing to work for victory.
nation and for all free men, I tion, every national background,
might be tempted to think that race and creed.
;
In this voluntary program. the
we had not done too badly in our
war financing in the year that has
bankers of America have stood in
passed.
They have given
By "we" I meaq, of the forefront.
course, the American people, but the equivalent of 25,000 full-time
also, in a special sense, the Treas¬ employees to the sale and pro¬
ury, the Federal Reserve System motion of War Bonds, and 85% of
and
the
bankers, working to¬ the sales made have been through
gether
in
a
new
partnership the banks. They have been fight¬
which we have entered into for ing in the front lines of our battle
the duration of the war—indeed, I on the home front by carrying
hope for a much longer time, for out the restrictions of Regulation
our partnership must look beyond
W on consumer credit, by keeping
victory to the peace we shall have a careful watch on all applications
to win together,
for non-essential loans, and by
In the fiscal year that ended helping to freeze foreign funds
June 30, $3.6,000,000,000 poured which The enemy might have used
into the Treasury in tax revenues to spy upon our war effort, to
and in all forms of borrowing. sabotage our production, or to de¬
There is no parallel in our history moralize our people.
They have,
for this money-raising
achieve¬ given their time and energy to
institutional funds by issuing new
BUY u
's
/
.
TO
best
success.
battle
meeting in this
decision should
,
which is
teamwork
to
or
We, like they, pressed in economic or financial
thought than to terms. They include all those in¬
conversion necessary to Win
of production.
They
the
reflect the determination of Amer¬
war.
interest
have met unprecedented demands
from industry for the expansion
freezing of foreign funds to pre¬
vent
their
use
directly or in¬
directly by the enemy, I mention
ican bankers to leave nothing un¬ all this in the past tense not be¬
done that can in any way con¬ cause the job is done but because
tribute to the object we all have even now it represents a record
in view—the defeat of our ene¬ of accomplishment of which you
mies.
By holding this 'Conven¬ all may be justly proud.
tion in print' instead of assem¬
"But no one knows better than
bling together as you have done American bankers that we have
for more than half a century, you only just begun to fight,
Amer¬
are
helping to
conserve
vital ican fighting forces are moving
transportation and other facilities into battle on lines that encircle
at a time when they are taxed to the globe.
If we on the home
the utmost by the demands of the front are to be worthy of thenf,
manner
air.
other
no
war.
private
■
hearty
this their annual
the
have been in the forefront of the
given herewith as follows:
"My dear
in
have
All considerations
tangibles which make the name
personal America a Synonym for freedom
comfort : must
give way to
a throughout the world.
Faith in
single-minded devotion to that freedom, in the honor and integ¬
aim.
As
community
leaders, rity of the common man, is what
bankers have
a
United
unique oppor¬ sustains us a" Nation.
tunity to promote that unity and in this faith we are invincible.
of
President Roosevelt,
Bankers Association,
Thursday, September 24,1942
TOO1
satisfaction
some
has. been
more
that
effec¬
tively controlled to date in this
war, in the face of a production
and expenditure program of im¬
mensely greater dimensions, than
in the corresponding stage of our
participation in the World War of
25 years ago.
sale
of
Tax
Anticipation Notes,
which afford millions of taxpayers
the
easiest possible method of
saving in advance for the taxes
that will be due next
Spring.
borrowing from the people
directly, we intend to make every
In
effort
to
reach
and
surpass
our
announced goal, of $12,000,000,000
from the sale of War Bonds
and
have to borrow more Stamps in the fiscal year that
$50,000,000,000 in one way ends June 30, 1943.
As I write these lines, the sales
or
another in the present fiscal
year, even if Congress enacts a figures for July, amounting to
tax bill to yield $8,700,000,000 of more than $900,000,000 in a month,
additional revenue, as we at the give us real ground for encourage¬
So also does the fact that
Treasury have urged.
Without ment.
shall
we
than
elaboration from me you can
appreciate what the borrowing of
any
the
sales
the
smaller
of
Series
E
bonds
denominations
in
have
just seen an estimate by
Department
of
Commerce
showing that the people's savings
shown a striking increase in re¬
$50,000,000,000 will entail.
Most encouraging
The
problem
itself
involves cent months.
more
than
simply raising the of all is the increase in the num¬
in
money
I have
the
The Dime Savings Bank of
Brooklyn
FULTON STREET AND DE KALB AVENUE
BENSONHURST: 86th STREET
AND
19th AVENUE
FLATBUSH: AVENUE I AND CONEY ISLAND AVENUE
the first two
quarters of 1942
great as in; 1941,
due partly to price ceilings, credit
restrictions and to the growing
shortages of many kinds of con¬
sumers' goods, but also in very
large measure to the people's
awareness of the need for saving.
were
The
BROOKLYN, NEW YORK
twice
as
estimate
savings at
an
shows
this
year;
as
cal
.compared
To begin ber (of workers purchasing War
have to manage our fis-' .Savings Bonds through payroll
to pay the bills.
we
affairs
so
that
the
financial
deductions.
There are now more than 110,achieving this, we must avoid 000 firms, employing over twentyfive million workers, that have a
any maneuver that threatens to
hinder the maximum efficiency payroll savings plan in operation.
In the month of July alone more
of our war production.
burden
is
distributed
equitably.
In
Above
individual
annual rate of $24,-
400,000,000 in the second quarter
of
with,
means
of
our
all,
we
must
find the
than 18.000,000 workers subscribed
$200,000,000 out of their
than half
national income this year
War Bond
yet with¬
deductions
to
with solely to
devote more
war purposes,
pay
for
purchases, and payroll
are
increasing at the
Volume
rate
of
c
month.
We
the
156" Number 4110
about
$40,000,000
Uv>." •.<*
•
THE COMMERCIAL & FINANCIAL CHRONICLE
triumphs,.^ they
per
confidently expect that by
end
of
1942
well
The successful
20,-
over
that
It. is
$400,000,000
$350,000,000 to
month would be de¬
a
:
our
I
As
told
Committee
ducted
voluntarily from - payrolls
hext' year
to
buy War Bonds.
During 1943, on this basis, nearly
by
■' j ;;
vinced
the
in
up
that
Senate
July,
I
to
sacrifices
American
as
a
the
upon
sources
that the American people
It
also
indi¬
as
group are
war
skill
ready
demands
of
as
him-
and
his
to
sacrifice above and beyond
a
private interests.
own
same
time, its
his
In
may
anxious
and
to
the
re¬
never
a
before.
leadership
us
a
is
not
of
our
spirits
are
and
Wilson
anything
It
us.
that
a
brought
dark
days
consists
common
right."
century ago,
it
a
all
of
us
and it
only
banded
as
together
enterprise: the
en¬
terprise of liberty and justice and
a
These
•
were
of
being tested.
is something only
the words of
great American at another time
when the fibre of
said, "America
if
consists of all of us;
consist
in
crisis
moments
each of
it
can
is essential
success
quarter of
Woodrow
if
At the
survival.
another
effort is call¬
and the leadership of the
American banker
con¬
greater
know
put forth any effort that
ing
Finance
I
bankers
be needed." Our
-
am
for
imagine.
we
viduals and
to
:'
•
ready
are
than
M
must do it.
we
problem, and it is
to solve it. ;;
us
lost
be
-C-:
financing of the
job,; and
our
It is
fi;om
•*..
is, therefore, vital for victory.
war
000,000 employees will be regu¬
larly investing at a rate approach¬
ing 10% of their gross earnings
through payroll savings.. This will
mean
can-
-;y financial; blunders.
■■
1075
our
They
nation
are
a
word for every American
was
watch¬
today.
$5,000,000,000 worth of War Bonds
would be purchased in this way—
all out of current wages and sal¬
aries,
we
and all representing what
regard as non-inflationary
can
^ Information of definite value to credit-worthy
borrowing at its best.
companies engaged in
'
Even
if
the
all
realize
my
War
Bond
sales
expectations,
■..t
,
The
members
Bankers
the
rely
than is
'
commercial
V f/?
\
^?"^.w" I""1'"" y-V*.
AN EW
•
we
run
if
y-
:-y
WAR
necessary on
the sale of Government securities
to
-
armament
-hry:-*..**
production.
*. ..*• ***
'*
•
'
A.V;V'r."'
iv.
f
...
WAY
T O
S I MPL IF Y
acutely
are
hazards
more
>••••',"'
American
the
Association
,of
aware
we
sources.
of
..
we
shall have to borrow increasingly
and
in -, Utterly - -unprecedented
amounts -from other
'•{• t:-'
banks.
I
CONTR ACT
FI NAN CI N G
often
think, however, that the distinc¬
"...
tion between sales of Government
securities:
and
>
i:
to:: commercial ^banks
;Ito^>dthei^vv:is., :over-;
saiesr
v
emphasized.
What
we
are
trying to do is to sell,
proportion f. of
our
possible, in such
I*-.'njjoa?
?*"
really
.
large a
securities-:; as
.
as
that their
proceeds, when spent by the Gov¬
ernment, will not constitute a net
addition
the
to
a
the
way
total
econamy; v*-"
★
★
★
★
spending of
\-JV-
z
'*
>
.f
*
I
think
that
it
of
sales
worth
Government securi¬
ties
to
commercial
add
to
the
remembering
banks
do
not
total
spending of the
economy if they are offset by de¬
in
creases
the
vestments in
loans
banks,
other
in¬
if they
are
or
or
offset by the accumulation of bal¬
ances
in
the
banks
which
are
It
;
is
therefore, that
Treasury should go far
the. unusual,
necessary,
at the
we
If
^
genuine savings of depositors.-
deeper
than
the
,
superficial
concerns
dis¬
nate
to others and that
sources
of the
The most desirable
funds.
of
is, of
from
...
arranging for
bor¬
course, money
the
current, savings
country.
the
•
A -substantial
::/
;
proportion of the proceeds of-all
classes
securities
Government
of
sold—including
some
to
banks—comes
commercial
source.
/
,
Yet inflation
tax bill
borrowing of vast
savings,
of bold and
borrowing.
find
it
a
adopt
to
or
form
yet
to
applied.
prepared for
I
sacrifices
new
into
a
as
and
new
We
have
You
-
often
can
made
are
are
from
possible
—
assured of prompt payment.
so
lately
about > the
finance
in
you
on a
—
cash basis.
in
checking
reducing
to
your
advantages of buying for cash with¬
functionwar
—
Using
cost
bank balance until delivery is made.
a
Domestic Letter of Credit is simple and the
that
on
not
decided
are
win
by
Domestic Letter
bank
Letter
an
of
Credit
protects
you
order.
You
have
financial
You
strengthen
security,
assures
as
possession of..the
prompt payment.
financial position with
your
/
your
a'Letter of Credit prior to delivery of,
and payment for,
your
product.
concerns are
cordially invited
to find out how
a
Chase Domestic Letter of Credit
can
importantly to simplifying and speeding their business operations. Sound,
credit-worthy
enterprises in the New York Metropolitan area may inquire directly of the Chaser out-of-town firms
through Chase correspondent banks.in their communities.
one
themselves
a
checking and investigating.
contribute
I
do
policies
confirmed
bank if you
possess
is moderate.
Established
of
and
should like to clear the air
of
.r
*
talk
point.
Financial
A
buyer's Letter of Credit
—
intense
inflation
that buyers obtain
against cancellation of
.,
—
You have all the
—
moves
much
winning this
You may
request
of Credit and eliminate much
buy advantageously because purchases
ever
out
war
more
heard
Chase
To the.Seller
phase.
•
■
*
r
controls and
the
concerns, a
should
than
more
new
qualified
more
spend¬
another, than
dangerous, but I do want
be
suppliers because they
predict at this stage,
prediction is
to
Buyer
You obtain immediate considefation
—
—
ing, in
like
cur¬
intelligent taxing and
necessary
anything
To the
rWIIPl
We undoubtedly shall
one
required:documents, with the Letter, of..Credit'.' Andy
ADVANTAGES
combination
a
important. You "eliminate protracted, and often repeated, credit investigations.
be quickly consummated. Payment is made promptly by the bank when the seller
cour¬
from
sums
by
or
buyer and seller has specific advantages to both parties when days
are so
curbed
consumer
for
the
\]
be
drastic control of
not
to
domestic instrument is less understood. But this method of
xI Domestic Letter of Credit, offers.other J
by the successful
or
payment between
h°urs
even
use as a
this
\
;
cannot
an<^
delivers the
di¬
-
from
,
merely by the passage of
rent
business; its
-Transactions may
of those sold
indirectly
rectly..or
ageous
conduct of their
source
of. funds
rowed
„
should look
we
closely at the real
..y,;/
pressing conditions of today are such that your company is transacting business with
may be little known to you, you can save time,
speed your war production and elimi¬
many troublesome credit problems by using Chase Domestic Letters
of Credit. yyfy'C-:
yThose in the import and
export trade know how vital the Commercial Letter of Credit is
tinction between sales of Govern¬
ment securities to banks and those
which
<
Wars
wars.
battles.
But
.
,
the
necessity for winning battles does
not
diminish
the
.
importance
of
THE CHASE NATIONAL BANK
^aisingthe-money to fight them.
Nor
does
it
lessen
our
"response
bility for raising the/money in
,
way
of
of
that
husbands- the
the: civilian
economy
be:
won
•
war?
by "financial
OF
instead
.wasting it.'T For though
may ~ not
a
strength
c
J * >« a">> T.
-v-* ~
*
\..."k
•M
L V
i
-r.r-I
t
-t-*' .Atv-l *'
f
t'l
y r
u
J.
;
THE
CITY
Member Federal
OF
NEW
YORK
Deposit Insurance Corporation\
^
:rr>ir.
■■■
J
I .!■' i
V
«
i
vi
1 •'"![/
»'
1
i
,1
L^'niUnn::.nHUT:s:::t:r:tr t.;:
-:
v.
Tlr. :-V
r
l:
•:
r v r
r
1
r
i
:
i
THE COMMERCIAL & FINANCIAL CHRONICLE
10 76
here
A New
the
Thursday, September 24,1942
resemblance
the
to
de¬
pression stops.
.In all other ways,
the conditions likely to be present
at the beginning of the post-war
Housing Era
By MILES L. COLE AN
era
.
:
..
Research Director* Twentieth Century
.
-
•.
out
of
labor
business.
being forced<e>
Housebuilding
is being dispersed in other
'
even
of/the
~~
the
increased
income-is
ex¬
existing, stock... of ceedingly
Owing to the difficulty dition of
broad; and savings, par¬
in making repairs, the. con- housing continues to. decline. 1Bu| ticularly in the middle and lower
activity.
that
we
are
Considering
the
effects of the wartime suppression
of building, the accumulation of
faced during the early,.thirties.
war upon housebuilding, with its challenge to technical ingenuity, dts y_.
1J Hbusefrents instead- of. desupply," and its piling up of unsatisfied demand, already -suggests botfcthat -clihirig will be kept "from' soaring
the post-war period will be one of unusually large building "activity'and that this activity only by rigid control—a. 'control
almost1.certain to .be carried over
may be carried-on in ways "and under1 conditions .quite-Unlike those of the thirties., ;
ihto,the new period.
•
/■■■
In a few respects the effects of the war on housing are similar to those of the de¬
y 2.. The. general level of income
is; steadily rising; the distribution
pression. Private building is rapidly declining. Building organizations — particularly
-The'impact of
ones—are
houses
with.
strikingly from those that savings and increase in incomes,
there»is likely,■.-.to be a,great deal Let: us .look; at. some of them.'>v of this, kind of',
building. .The '$7,-
Fund, New York City
curtailment of
the small
built
familiar
vary
we
custom
rnchme groups, are piling up.. De,TOand;'t instead of drying up,", is
0Q0
to;$10,b00
dr
$12,000 house will:
probably ; 'be: much
For
a
in
demand'.
few years at least it', should'
provide ample business for build¬
following "more or less,,'tradw
ers,
tional methods of operation:
v V-
But, this class; of dwelling
can-,
not be counted upon to go far in
meeting
the
Then,
previously, the bulk, of
the
.as
post-war
potential; market
from
the
families
merely hidden behind the barrier
.
in
demand".
will
<
tome
the
lower
three-quarters
of
the. "income
scale, who have'never been ade^ 3." This demand for housing , is quateiy /served with new dwell-*'.
made/more; pressing by the in¬ ings./V;1 And it/is this'"group -that/,.;;
creasing shortage of housing. The stands1 to- benefit, most, from the:
of-war restrictions.
.y
■
;
.,
.
V'.//-
<•
,
,
\
i*
;•"
u
.
•.
I
t
4as|fdecade
saw.
farm' houses
fy_
;
.
f
,
U *
■
'
•
,
additional
•/>; ^
^
r
for
non-
each
families.1
few,
were :
only, two,
built
five
.
There
'replacements of old
chouses/ and the census of / 1940
■/
,.t-
'showed that, the
technicaUprogress-'that: has been?
made during the?"war. period; -'/ y
VThe
,war
.
housing.
>
has
program
demonstrated;; that
simple,.; com^.
fortablevahd attractive: houses can*r
general condition be built; /even under the difficult •
-
•
of; the
existing stock was even -and expensive conditions; createds
than had; been revealed .by by the existing shortages;', at prices
thetReal Property Inventories of around .$4,000
(and
sometimes;
1934..
;
less) a unit, including a reason-,
4. Although
the typical small able allowance for the land.
It';
worse
:
.
housebuilder
forced
of
from
the
past may be
the
picture, the
housing program has at least
ceeded
fairly
war
suc¬
in
keeping a number of
large organizations active.
The pressure for' speed' and econ¬
has
omy
served
down
old
velop
alike
break
to
new
time
and
restraints
to
de¬
techniques.
The war¬
housebuilders,
experienced
in mechanized
mass housing oper¬
ations, will be ready and eager to
carry on their activity in the post¬
war period.
5. Competition
for
peacetime
markets among producers of war
materials should not only create
favorable
^priees but also-make
materials and new uses
many new
available
of: materials
house¬
to
building.
Lumber, steel, alumi¬
num,*;. magnesium
and
plastics
"should alL figure ..in the drive to
make
use1 of
excess
productive
capacity.
:
t /
V
'.Thus in sharp contrast with the
first years of the last decade, it
.
.«4
likely that we shall enter
post-war :era with a very
appears
The Titna Life Insurance
Jthe ;
Company
strong demand for
The iEtna
new
does this all
Casualty and Surety Company
the demand. What
in terms of the
mean
quantity and kinds of housing?
Forecasting the housing market
in -*• normaltimes
The Automobile Insurance
The Standard Fire Insurance
houses and
the beginnings of an industry cap¬
able of meeting
enough.
Company
is
difficult
Under the rapidly chang¬
ing conditions of
a
war
economy
has / :■ demonstrated
housesl
that.:; these
susceptible of/mass-:'
production under highly mechan-;
ized methods of operation.
are
.
The large building organization;
which was a factor of increasing /
importance;during, the/past dec-/
ade, is even more .characteristic 1
of -housebuilding under war con-,*
ditions.
Projects of -500.to i;OOG
units are a commonplace, while
developments of 2,000^.3,000 and. '
even
5,000 units have been car-/'
ried.on as single operations.
Anc(
the
factory, which before the war.
only beginning to be. used iq
the pre-assembly of house. sec-.
tiOns, has become almost the key¬
note "of war production.' Whether^
placed temporarily on or near the
site of a large project, or operat¬
ing on a permanent basis, inde¬
was
pendent
of
any • of
the several
from time to time be/
serving, the factory seems to have 'V.
been firmly established as an in-'
sites it may
of
strument
house
production;
While, in terms of; size of
organ¬
ization, //housebuilding may not
yet have become big business, thd
wrar
has certainly made it a
business
than
it
bigger
during the
was
Thirties when the average produce
tion per builder - was something
around four houses
a
year.
These
industrial
changes are
likely to result in the capture and
extension
of
the
market
for
low
and with the many unpredictables
that war occasions, it becomes a
job for the foolhardy. -Yet on the
basis/of certain 'assumptions we
may at least get a glimpse of pos¬
sibilities.
"We may, for instance,
assume a fairly high level of na¬
Company (
priced dwellings by the large pro¬
ducer whether he be the
project;
builder, constructing
tional
income
war—current
somewhere
1940
the
at
close
estimates
$110
near-
of
the
place
billion
it
at
perhaps
safely assume that the relationship
of-housebuilding to national in¬
come might be similar to prosperpus.years'in the past—in 1925, the
prices.
We
may
numbers
of
houses
considerably
in
one
loca/
tion, or the factory prefabricator
serving a number of locations/and
reaching even into / the.. smaller
be needed.
It is not unlikely that
important part of the demand
for more expensive
houses—rang/
ing to $12,000 at the 1940 price V
level—will / gradually be met" in
the same way.
The small scale/
an
handicraft
is apt to be more and more
con/
fined to a limited market demand-;
was 7.2%, and for the
building cycle
(19191935) the average was 4.5%,:
builder
in
the
future
b; On' this
-
every
ious
classes
struction
form of insurance and bonding protection
-
basis -it may be esti-. ing
a - '..thoroughly
custom-built
a- post-war production
article!
'i
-!1 ••
upwards of $5,000,000,000 to, say,
If such a ..shift in fhe method of
$6,500,000,000 is/well within possi¬ house production / takes place, it j.
bility.,;, How such an expenditure is bound to bring with it many
would be divided among the var¬ new banking
problems.
The fi¬
mated that
Companies write practically
;
where only a fewj
separately erected dwellings may
complete
■
.
,
communities
relationship
•
These /Etna.
•
;
is
of
residential
again
con¬
question on
which estimates rpay widely vary.
Assuming an average cost (ex¬
clusive of land); of $3,400 for a
non-farm dwelling unit, we might
(at the $6,500,000,000 figure) pro¬
duce over 1,300,000 new non-farm
houses and still have nearly $2,*000,000,000
left
for
new
farm
houses, housing repairs and alters
a
>ations and miscellaneous residen¬
tial1 construction.
Assuming such
-
■
to be
housing is
likely to be produced?
A part of
it, obviously, will be for families
in the upper end of the income
possible what
a program
sort
of
scale—the typical custom or semi-
nancial
needs
of
the
large
pro¬
ducer, for both the production and
the marketing of his product, are
far
different
from
those
of
the
traditional
house-by-house build¬
er.
Housing finance must, there-^
fore, face modifications that will
permit it to meet the special re¬
quirements resulting from the.in¬
dustrial change.
•
Traditionally the mortgage has
been the instrument - of housing
finance, both for the producer and
the purchaser.
Either the pros¬
pective buyer obtained a loan or
a
commitment to make
fore
construction
a
loan be¬
started,
or the
builder, if operating on his own
(Continued on page 1080)
~r \
■
'
Volume 156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
.......
_
1077
.
--jf
Mll
1
'
"
■■
ctf.W ->Aw- ■
r
,
'
v
,
'
..
g'^/-
(^B£S€«v
\
*
'
•
**
'
'
i
*
V '
4'"
;;.„* it
•
1V /.' SI i-
H'"
,
V'
•^ /
•,
-
4 *
R^?l
>
.<
i.»:
^
I*. j
■
-
.4,
•'
v":';
v."
'
11 >->-
•
'
V
demands Industrial Teamwork
To attain
•••'*.
our
Teamwork
,
* '
;
■
" ^
'
structural
''
'
."//y'-V
world's
' f''
i
*1**;
men
■->
in
tion
:»
to
Yet
be carried
days of
'
so
much
of
the
hope depends,- the cooperation of all
all yards is essential to
bring produc¬
its highest,
record-shattering tempo.
even
this is not
be
enough. Industrial Team¬
carried
the yards—to
outsid
supply the builders
their stuff of industrial life
and outside
'
♦
un¬
not create the
which
on
I'm
4.
point
shapes alone will
the other industries which
X
a
Steel plate and
work must
with
to
peace.
carriers
ocean
'l'..
shipbuilding goal, Industrial
must
dreamed of in
.
"
the
shipbuilding
Both in
...
Insurance
areas,
contributes to and unifies Industrial Teamwork.
■r
;
V
■
>r--
Insurance Aids
C
Virtually
every part
Industrial Teamwork
of
benefits from Insurance
mize
hazards
to
a
gigantic shipbuilding program
planning. Scientific
surveys mini¬
plant and facilities. When disasters do
dollars become available, permitting early
occur, insurance
resumption of production otherwise frequently impossible.
MS
V
/
'°ye*S
m*.
t.
a
V
FIRE
r
•-
%
"'V.AJN*-1'
'
.
' NE W
YORR
AUTOMOBILE
•
^
THE HOMEm
%j
* V
V
'
"> V"
<
4
"
,
*'
^
•
V
^
^
MARINE
'
__
V
s
INSURANCE
r
V
"SvV**
*
v-
SxV
.Miis^tftw&cw&m i"
Protection in
Bank
'
tered
V\
Department.
adjacent
buildings
special air-raid alarm bells sound throughout the floors of
the various buildings comprising our Head Office organization, thousands of staff members
arrive in orderly fashion in their safety areas, cash and securities have been moved to the
vaults, records and other valuables are under cover, windows are open, lights are out,
emergency medical quarters are staffed, fire brigade trucks are manned—and we are ready
cation.
ing,
which it is logr
most vulner¬
from the
air, our air-raid defense program
was put into effect soon after war
to
able
was
attack
enemy
declared.
Nevertheless, it is
still in the process
of refinement,
ning based
upon
Civilian
general
certain
instructions issued by the
Office of
Defense! and».the New
York City Police Department. Any
bank can readily accomplish the
same result by a study of its own
v
particular.. circumstances.
Sur¬
prise tests frequent enough
to
keep the organization alert will
effectively
disclose
any
weak¬
nesses of the plan.
Safety of the staff must be given
first consideration; next comes the
,
safe-guarding
and records.
upon
this
cash,
of
securities
Our plan was based
premise.
Every
em¬
an
emergency,
cific
main build¬
our
was
event, of
in
air
raids.-
therefore, to
necessary,
such
ment,
It
pro¬
safety areas in our main
building for the employees in this
low the street
doctors
and
building.
We have been informed that all
but the upper
of a steel and
bers of
aid
have
and
courses
been
concrete
safe
structure
from
bombs,
is 45 feet above street level.
After
issued,, meetings were held
small groups
and depart¬
ments, at which our program was
outlined
in
detail.
Suggestions
were
ap¬
with
proved for emergency; service by
our Medical Department.
Our planning was made com¬
.
to
with
floors
safety
v
,
control of wardens, move person¬
in most cases,
corridors providing
Building engineers and porters
our fire brigade trucks, and
man
they, are thoroughly drilled in the
handling
of
incendiary bombs,
30
fire
about 24 billion dollars
fighting
pair work.
controlled from
are
watch
with all floors
cen¬
qf all; buildings and?
in; simultaneous vwarning
results
of the
face.
our
which connects
room,
danger we are prepared to
.
'
-V'.v.v
They
present holdings.
than
less
a
spite higher
now own*worth, and A
from
year
to
they
day
sell
to
excess
of five billion dollars.
serves
vigorous
efforts
they had
ago
year
re¬
To¬
in¬
48
that
-
with
rates
of
ratio
re¬
With¬
required
of
for -The
-
corresponding
expansion of deposits. The aver¬
age percentage of reserves to de¬
There is no posits in the United States is just
question about under 20% and if this ratio is
doing the job; maintained it will take nearly five
there
implies—someone with whom you
correspond. On the other hand,
may represent
thoroughly alive to
a
relationship,
a
your
interests
spirit of mutual
profit.
to
load.
Excess
clined
and
down
point.
But the
and
new,
for
because
task
sion
they
to
Economic
of
the
analysis
be
the
Even
and
Bankers
made
were
effect
the latest
Member
on
the
of
banks
a
and
of
6-30,«
6-30,*
1942
1943
Investments:
Loans
16.7
18.0
18.0
Governments
18.1
23.6
48.8
5.8
6.0
6.0
40.6
47.6
72.8
58 5
64.9
87.9
5.8
6.0
6.2"
9.2%
7.0%
12.6%
8.5%
Other
Investments
Total
Liabilities:
Deposits
Capital
Capital
•
-
...:
Funds
Funds
To
Loans
;
and
•
-
Deposits
To
:
Ratios:
9.9'j
Invest¬
ments
14.3%
One
painful subject for envel¬
jottings is bank reserves.
Where
will
the
banks
get
the
money to buy all these securities?
!
face
be.
will
be
one
of
a
of
re¬
banker's
tasks-^just
This
strated
Federal
the
extra
Reserve
reserve
they needed.
That could
again.
But there are
alternatives.
The legal re¬
of funds about the country, some
♦Estimated.
ope
position.
In
the management
reserve
mean
readiness
of
the
Reserve
System to put out additional re¬
funds support the full par¬
ticipation 6f all banks in the fi¬
nancing program.
serve
done
other
Trends
1941
Loans
not
neglect its
the period
Another
figure
bankers
are
working out on the backs of en¬
velopes is their capital position
serve
requirement could be re¬
after another year or two of ex¬
duced, thus freeing reserves for
As the foregoing table
the new load to be carried.
Or pansion.
shows
there
will
be
quite
a
the'Federal Reserve System could
shrinkage. '
buy government securities, thus
Of
course,
the old standard ,
pouring reserve funds into the
ratio between capital and deposits
banks.
was
not
a
wholly
satisfactory
The banks will carry through
measure of soundness.
It was only
this big undertaking with more
good if you could assume that all
confidence if they do not have to
funds
were
employed at equal
borrow heavily and continuously.
risk.
How much capital a bankThey are reluctant, and with rea¬ needs
depends <ki the risk of loss,
son, to be borrowers for extended
and that is a question of character
periods.
In the course of this
huge program with its great shifts of assets. If a bank holds mort-'
be
Security Purchases on AH
Assuming
Continuance
of
.
dol¬
money
(In Billions of Dollars)
Total
eight billion
about
from
the
needed.
course, this does
bank can afford to
essential
most
the govern¬
spending and
revised upward.
Current
dollar.
banks
6-30,
Member Federal Reserve System
three
past 12 months.
is drawn from the
up reserves, dollar
rowed
budget estimates:
Banks,
uses
financing
following table shows the
probable
it
the report was
war
as
for
6c
Member Federal Deposit Insurance Cor(mation
almost
In World War I the banks bor¬
Effect of Government
Charter Member New York Clearing House Association
rose
Will they come from?
an
press
estimates
The
Broadway, New York
the
as
Of
as it used to
problem, however, has
greatly eased by the increase
lars of extra bank reserves are
in
the
outstanding
volume
of
likely to be needed before the end
bills
and
certificates
of this fiscal year (assuming the Treasury
readily saleable at any time.
present two billion of excess re¬
These facilities and the demon¬
serves
are
maintained).
Where
Policy Commis¬
Spring
'
been
under¬
done
American
last
of
borrowing
Founded 1824
in
Thus,
their share in it.
coming off the
TRUST COMPANY
circulation
in
con¬
being forced to sub¬
They
have
responded
ment
bank
able
Treasury issues.
As
Secretary
Morgenthau testified the banks
problem.
Chemical
payrolls and rising prices.
There
also some hoarding.
Currency
serves
the
,
separately from
those of other groups of banks. "
The net of all this is that every
we
Association
banks of the Nation.
tral refeerve cities
banks
The
associations, old
fi¬
When currency
willingly
re¬
the passage of legislation
giving;them greater flexibility in
dealing t with j reserve
requirements.; / The
new
amendment
gives them the power to change
the requirements of banks in cen¬
billion
not
new
curing
is
vanishing
banks have
the bulk of
required—by reduction in
reserve requirements, and by Fed¬
bank may go ahead and buy its
required, for currency de¬ share of the new government is¬
with
mand has. been increasing under, sues
assurance
that
ad¬
the stress of huge production and ditional
reserves
will be
avail¬
of profit
the
to
ways
serves
will be
the
issues has been
stood
building
of
other
tinued to enter their subscriptions
for the larger and more
frequent
scribe.
relationship is the goal
nance
have„ de¬
margin
new
pared
were
of the Chemical Bank in
share
reserves
the
successive
on
its
carry
to
reserves
the
purchase of 24 billion
Each dollars of government securities.
is pre¬ Actually even more reserve money
bank
pared
of
dollars
billion
be
can
holding
back.
W. R. Burg-ess
sort
increase.
no
merely what the word
less risk of unstable money
if the banks can obtain in
spelling it all out, the central eral Reserve open market pur¬
The Reserve System has
point is that when banks expand chases.
their loans and investments, they given clear indication of moving in
must be able to put up at the Re¬ that direction, by substantial pur¬
serve
banks the reserves legally chases; of gov£rments and by se¬
"X"
same
doing its share
bank
Government's
out
one,
more
the
to credit expansion.
serves
is
be
encounter
we
economics—the
in
There
or
a
the
most
confusing and perplexing concept
Here
dollars
all.
in
only
have
lion dollars of cash?
over
sign that
financing
two billion program.
But that program will be car¬
dollars.
How can you buy 24 bil¬
lion dollars of bonds with two bil¬ ried through more smoothly and
de¬
now,
and
taxes
of
tral
for
financing and tax programs.
\
;
C)
The Under Secretary of the Treasury has just told the Congress that by next June
the member bank holdings of Government securities are likely to be about double their
the
165
Alternates
boards.
appointed
are
,
years
the
bulletin
and
Government
.'y-
two
with
partment has its own specific plan
posted prominently on the walls
days are using spare minutes to jot down figures on the backs of en¬
are
interior
velopes, the corners of newspapers and even on table cloths.
They are trying to figure
maximum protection from
blast
how their banks will look in deposits, earnings, and capital position-t as a net result of the
damage and flying glass.
may
its
the
enter
employees
new
they receive a copy of the
original instructions, and each de¬
Vice Chairman of the Board, The National City Bank of New Yorkt
not
a
As
bank
Bankers these
These safety areas,
And
Such
tory.
rBy w. Randolph burgess
v.
securities.
service and
moved
highly satisfac¬
was
areas.
of government
by
and' valuables
evacuated
to the vaults
Effects Of The Wax On Banking
:
hold
and actuated
The
alarm.
vaults located be¬
billion
it
surprise
were
speed with which the floors were
bells
instructions
individual
vestors, banks
are
likely to
be
floors
all wardens,
and we therefore have arranged to
monitors and first-aid volunteers,
evacuate these levels.
Personnel who act in case the
principal is
on the ground floor and below are
unavailable through illness or ya-/
moved to our second floor, which
cation,
or iat 1 luncheon.
Alarm
staff have taken first-
our
four or five floors
relatively
are
phone outlets are located at many
points.
Several hundred mem¬
level, others to take
nurses
to v first aid
while others- under the
stations,
nel
as
bonds
can
all-out
an
all
After
effected.
an
•
were
function, several to take se¬
curities to the
and emergency re¬
Our portable trucks,
instructions which specified the
compact
enough
to
enter
the
safety areas in our various build¬ elevators, carry 60 items of equip-
ployee received a printed card of
our
to
Adjoining
as
unsafe
fire-fighting ap¬
paratus, shovels, pickaxes, sand,
hose, lamps, fuses, asbestos pads
rather than return to their par¬ and gloves, and other items.
They
ticular quarters.
One of our early are located at strategic points in
our
tests pointed to the logic of this
buildings.
Each
floor
has
been provided with first-aid sup¬
point.
plies, buckets of sand, and fire
Each level Has a floor warden,
-and
-emergency
and in addition there are a num¬ extinguishers
employ¬
ees who may be away from their
desks go to the nearest safety area
In
frequent surprise tests bring¬
ing to light minor imperfections ber of monitors on each floor to
in the plan.
As is the case in any conduct personnel to safety areas.
organization which must consider Those assigned to take care of
the many differing factors, such cash and securities are provided
as
type of building construction, with
containers
which
can
be
available safety areas and total filled quickly and taken to the
personnel, our program was the vaults. Each elevator in the var¬
result of careful study and plan¬ ious buildings is assigned a spe¬
with
drills
vide
ings.
to presume are
found to
example, is an eightstory structure which we consider
for whatever may come.
In common with other organi-^
nation's seaboards,
tested, each group of buildings had
were
main
one of which is cen¬
commercial banking ac¬
our
tivities and in the other
Vice-President, The Chase National Bank of New York
cities along the
over-crowded dispersal areas were
these
large
bank
were a further compli¬
Head
our
two
in
located
buildings, in
Within 10 minutes after
zations located in
Trust
Our other buildings
is
Office
By FRED C. EGGERSTEDT
Second
.
invited, and many " were
be helpful. <"• Thereafter
staged, a floor at a
time, to test the plan, and minor
changes resulting from delays and
by the fact that
plex
ical
Thursday, September 24, 1942
THE COMMERCIAL & FINANCIAL CHRONICLE
1078
have to borrow at
They should do so freely
when necessary* Under these cir¬
cumstances^ borrowing- will be a
banks
may
times.
-I.
t-
t
.
i!'
?
I
:
•'
gages,
bonds,
or
or
longrterm
corporate
is heavily loaned
up,
^
the
risk is much, larger and the cap-LE1
(Continued
>:.t
).;
i
i
on page 4^084)^
i'i
<
i
i •«.
^
.Volume 156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
1079
be
determined by its size and lo¬
the investment prob¬
lem of an institution located
into the traditional
cation, since
in
By DR. MARCUS NADLER
'
;
;
the
Professor of Finance at New York University and
Consulting
Economist of the Central Hanover Bank and Trust
Co., New York City
.
;
v
-
•
market center
money
materially from that of
.
tution
As the financial needs of the Government
grow, holdings of Government obliga¬
tions by the banks are bound to increase.
It has been estimated that
during the present
fiscal year the banks
may be called upon to absorb between 25 and 30 billion dollars of
located
in
differs
an
rural
gories
-
community.
the
of
purpose
study, the investment
policies of banks may be divided
COMPOSITION OF DEPOSITS
OF
their
deals
one
with
securities
the
to
of®
purchase
be
by
the Government, while the other
All
itself with the ; manage¬
concerns
ment of the
a
preseht portfolio.1
The broad investment policy of
bank should - be based on the
following
(2)
principles:
liquidity
withdrawals
to
of
ings.
Safety—United
ment
try.
tions
States
obligations
safety,
terest
when
of
an
deposits will
not
that
profits, it is clear
The
price fluctuation.
In this
The capital of
as
only risk
the ratio of capital
accounts
deposits, which is already lower
than before, will decrease
rapidly.
losses
its
on
short-term
V
Banks
94.3%
78.9%
TO
64.3%
4,698,677
5.7%
RATIO OF CAPITAL ACCOUNTS
$17,252,843
11,101,519
17,541,379
1,236,686
,
Banks
$22,240,056
20,283,018'
19.8%
Member
Banks
$21,519,704
12,086,687
'
_
Country
6,151,324
'
TOTAL
21.1%
35.7%
DEPOSITS
Central
Reserve
AH
City
Member
Member
Member
Banks
Banks
Banks
-
^
Total
Total
Government securities subject to
a
.
1
City
Member
Reserve
Per
price fluctuations.
policies of
►
.
80.2%
■
earning assets is in a better
position to acquire longer-term
deposits
capital
of
cent,
investment central
bank will also in part
;
total
deposits
of
the
city member banks
less
than
6%
of
City
Country
Member
Banks
$21,519,704
$22,240,056
$17,252,843
1,943,813
1,980,953
2,004,792
9.7%
time
reserve
represent
$61,012,603
5,929,558
accounts
Whereas
the
•
48,925,916
total_,___i.,.^
„
its
Furthermore,
of
against
9.0%
total
in the
their
8.9%
11.6%
deposits, they aggregate 21%
case
of reserve
(Continued
on
city
page
Since
Government
obliga¬
tions carry no risk
whatsoever, no
cushion is necessary
against them.
Hence, the smaller the ratio
capital accounts of
of the
institution
an
to
however; certain factors
deposits the greater will be the
considered; namely, incentive on the part of the banks
should
be
.
HI)
that during
some
time
the war, and for
thereafter, the
money
market will be
entirely dominated
by the needs of the Treasury and
that
the
monetary
authorities
have the power to
keep money
rates at
any level they may de¬
sire; (2)
repetition in the Gov¬
a
ernment
bond
market
of
what
to
keep
assets
part of their
liquid form.
in
Maintenance
of
earning
Earnings—The
earnings of the banks will be de¬
rived
and
more
vestments
from
more
since
the
in¬
volume
loans, particularly of the
institutions, may decrease.
made for the purpose of
of
.
.
.<?l
■*.
smaller
Loans
Petroleum
financing
happened during 1920 when the
Liberty Bonds witnessed a sharp
durable
possible;
Industry Division
inventories is gradually curtailed.
Since the earnings of the banks
consumer
goods may dis¬
entirely within a reason¬
decline is not to be
ably short period of time.
It is
expected, and
(3) a repetition of the decline in also
likely that loans made for the
Government bond prices, as oc¬ purpose of
enabling merchants to
curred during the
banking panic, carry consumer goods inventories
under present
conditions, is im¬ will be reduced as the volume of
be
HenCe, while it
denied
that
fluctuation
the
does
risk
cannot
of
exist
price
in
long-
appear
will
term
Government bonds, these
fluctuations can and
probably will
be on only a moderate
scale.
%;
depend
and
more
more
on
investments, their investment pol¬
icy should be
the
assure
formulated
so
as
to
individual institutions
Liquidity—The increase in the sufficient earnings not merely to
holdings of Government securities meet overhead'expenditures and
by the banks will be
accompanied
a
corresponding rise in the
volume of deposits.
A general
by
decrease in deposits can be
caused
a wholesale reduction in
by
loans,
sharp increase in the volume of
a
currency, and the liquidation of
a
large amount of securities held by
banks.
None of these
develop¬
ments
on
considerable scale
is to be expected.
A reduction in
the
any
volume
of
deposits
also
can
take place if the
refunding opera¬
tion, carried out by the Govern¬
to pay
dividends but also to
mulate
plus.
Since
in
are
position to adopt
a
safety combined with
erate
hard
suit
and
the
of
lems
fast
rule
investment
since
with
which
it
must
best
manner
needs.
But
vestment
each
in
bank
solve
suited
the
in
however,
possibility
that
war
effort will find their
deposits
increasing at
a
rapid
more
pace
on
the fol¬
(1) Composition of the deposits,
i.e., time deposits versus demand
deposits.
Furthermore,
vulnerable
diate
and
subject to imme¬
withdrawal.
The
assumes
swing in
affected
a
more
normal character.
Similarly, the sharp increase
income of the farms will
material
certain
increase
farm
during the
able
deposits
communities,
a
in
since
they will not be
purchase durable con¬
to
war
sumer
goods
as
equipment to the
before.
in
in
cause
After the
well
same
war
as
farm
extent
as
when these
commodities again become avail¬
able
their
acquisition
by
the
farmers
is
outflow
of
An
a
bound, to
lehd
deposits.
~
-
to
an
•
institution which maintains
portion
of
its
assets
in
liquid
(2) Composition of the existing
assets must be
carefully analyzed
before a definite investment
pol¬
icy can be adopted. It is obvious
that
bank
the
investment
whose
assets
far
as
policy
of
a
consist
to
are
■
i
r,
are
(
mo¬
possible and
wartime problems
day'
■;v;■ ; ;
Major adjustments in refining tech¬
are
required to produce aviation
gasoline. Transportation systems must
be
adapted to changing demand and
the hazards of
war.
Pipe lines
must be
operated at top speed—some reversed.
Tank
be
cars
the
strategic
will
bank
be
different
supply substantial
for
are
that
primarily of self-liquidating
mercial
loans
and
of
of
and transport trucks must
necessary
short-
com¬
Be
and
medium-term Government bonds.
(3) Ratio of capital to total
earnings assets will also play an
important role in determining the
V.
gaso¬
fuel oil keep machines in many war
plants turning. "And
services of
more
than
the
continued
15,000 Pure Oil
dealers help the motorists of America
"care for their cars—for
try." Now,
knows the
sure
more
with Pure
than
their
ever,
coun¬
America
meaning of the words, "Be
with Pure.".
Company is fully
sure
for wartime requirements.
Pure Oil industrial lubricants and
a
composed
amounts of the
synthetic rubber, high octane
a
from
assets
in
government's requirements for bases
extent of mortgages
long-term commitments
whose
owner
Southeastern Pipe
Oil refineries will enable the
company
to
considerable
and other
substantial
new
Line. A construction program in Pure
kept rolling.
The Pure Oil
a
line, explosives, and other products
facing the petroleum industry to-
nique
Pure Oil is
re--
part of the nation's trans¬
these
cooperating in solving these prob¬
lems.
portation system
a
deposits, i.e., the amount of de¬
by the war. posits that an individual bank
may
Part of
these deposits may be lose
within
a
relatively short
lost to
other sections after the
period of time also must be taken
war, when tfye national economy into consideration.
favorably
that
bank
must also take into consideration
what proportion of its
deposits is
than others located in sections not
/
the private automobiles
preserve
the
own
individual
an
based
as
a
•
helping motorists maintain and
is
main, the in¬
policy of
meeting the needs of the
toring public
prob¬
its
to
is,
sections of the
country may
,
before
all
lowing considerations:
lose deposits after the, war. Banks
located
in
communities
which
have greatly benefited from the
•
supplying the increasing
1
of
different
bank should be
some
I
any
would
needs
a
a
,
ever
quirements of the armed forces
mod¬
as
which
deposits is bound to remain large
There
I
de¬
impossible to lay down
for
considerable period.
„
higher pitch than
earnings.
It is
institutions,
large scale, then the volume
fair
a
of liquidity, as well
gree
confronted
a
Keeping industry rolling at
in¬
an
vestment policy which would as¬
sure them the
greatest degree of
to transfer
banks to ultimate investors.
If
this is not done, and it is doubtful
whether, it can be accomplished on
sur¬
the
Government ; is
offering short-term as well as
medium-term obligations, banks
ment after the
war, are intended
obligations held by the
accu¬
moderate amount of
a
mem-
1084)
potential
earning assets.
of
seen
1, 1942
bank is intended
a
cushion
a
cent,
be
may
APRIL
City
$61,012,603
—
deposits
Time deposits
Per cent, of total-^^__—
of
to
^The
•respect,
undivided
safest
longer the maturity
obligation, the greater is the
risk of
and
coun¬
attached to Government securities
is that they are
subject to fluc¬
tuation.
outflow
be accompanied by a
correspond¬
ing increase in capital,. surplus
the
in
principal and in¬
due.
this
,
in the volume of
Govern¬
The holders of these obliga¬
are certain that
they will be
paid promptly,
meet
without
Furthermore, since the increase
the
are
available
to
Per
naturally will be hesitant to ac¬
being; forced to quire assets Subject to risk or wide
sell medium- or
longer-term Gov¬ fluctuations.
On the other
hand,
ernment
obligations which are an institution whose capital re¬
subject to price fluctuations.
sources are large in
proportion to
possible
deposits, and (3)
satisfactory earn¬
maintenance of
securities
(1)
meet
sition
r:! deposits
-
deposits
Demand
as
Reserve
Member
Banks
;
,
Total
investment policy of a bank.
An
institution whose ratio is small
an
Central
Member
—
form, i.e., in short-term Govern¬
ment obligations, will be in a
po¬
from
composition
MEMBER BANKS
Reserve
'
offered
apparent
the
deposits,
•
new
of
from the table below.
ALL
•
„
become
analysis
the present
newly issued governments.
The banking institutions throughout the
country must there¬
fore adopt an investment
policy coordinated to the present needs of the Government.
Such a policy divides itself into two
parts, both aiming at the same objective.
The
'
For
re¬
The investment
problems of the
institutions in the different cate¬
insti¬
small
a
classifications;
namely, central reserve banks,
serve city
banks, and others.
THE COMMERCIAL & FINANCIAL CHRONICLE
1080
Thursday, September 24,1942
The latter percentage
is small, but systems can be developed so that
of such in¬ banks in various sized ciassifica/
come
in relation to the: capital tions can measure their operating
stock is very important.
efficiency.
In some States, such
Some banks now show as high as Ohio, the bankers' associations
Importance 01 Savings In Our National Life
By PHILIP A BENSON
President of The Dime
Savings Bank of Brookyn, New York
as
offers a challenge to every savings bank¬
er.
We now have the opportunity for a truly great service to our country, for the reaffirma¬
tion of our faith in savings and for demonstration of the vitality of savings banks and their
There is
doubt that the present situation
no
popularity as agencies of thrift. It may have been thought within recent years that-the
old-fashioned virtues of thrift and savings were becoming out-moded. Such is not the case,
of their gross earn¬
to 20%
10
1%
additional
every
have
commendable
8. Examine
studies
The
and
in
proposals
the
light of experience and fact
rapid and far-reaching re¬
which
adjustments
and indus¬
financial
all
economic
many'communities today substan¬
tially increased farm
made
in this field.
in service charges.
These
charges are a necessity in the
sound operation of banks whose
local loans decreased greatly in
the < last
decade.
Moreover, in
ings
accompany
and
postwar periods invari¬
however, for the value of savings in our national life stands! out as a fact of constantly in¬ trial income is resulting in-the
ably bring conflicting proposal^
creasing importance. Savings is
retirement of loans.
Bankers may
for changes in our financial and
The present time
of the national war effort.
Some ment channels.
necessary element in our present
thus find it necessary to reexam¬
economic systems.
Confronted by
banks—The Dime Savings Bank can well prove to be a golden op¬
program for it is a major factor
ine their service charges, including
these proposals, it is not sufficient
in financing the national war ef¬ of Brooklyn is an example—are portunity for the savings banks those for
handling checking and
simply to insist on a dogmatic
fort.
Savings also emphasizing the fact that sav¬ to increase their prestige and in¬
savings accounts, issuing drafts adherence to what
may be anti¬
is a necessity ing now is of especial advantage fluence.
and cashier's checks,- collecting all
quated :do'ctrinesY.rNor,! :bn .-the
also in the sta¬ to the individual in that it is first
Another problem that strikes me
types of items, making telegraphic:
other hand, can a banker blindly
bilization
of being loaned to his country, and as being of great importance to;
payments of. money, safekeeping
acquiesce: in obviously; unsound
our
entire later, as it is returned to him, it savings bankers is that of building;
securities, stopping payments, re¬
economic
for
structure
it is
definite
a
of
preventive
disastrous
f 1
t i
a
In
words,
savings is not
virtue
only
a
and
an
c
i t i
evi¬
of
dence
z e
and
good
nship
good
character;
in
has
those things
it
these
when the war is over.
banks in promoting savings
the war effort and for the pur¬
for
of acquiring funds for post¬
expenditures is to make it
clear to all those who are receiv¬
pose
war
salaries and wages that sav¬
ing
ings
must come
from current
earnings and not from past sav¬
Past savings are already at
and
are
invested in the
Government or in the
ings.
work
signi.fi cant
bonds of our
country's
national necessity.
of
the
major problems
State, as a group, are doing this in
Statewide plan of advertising
a
using newspapers, radio and mo¬
tion pictures.
Individual banks
industries
in mort¬
or
It is the creation of
of current earnings
do the really im¬
portant job for the country and
for
the individual,
and savings
loans.
out
gage
of
the savings bank in the present
emergency is therefore to realize
the vital necessity of savings and
the
important part each bank
plays in promoting it; to do its
utmost to preach and to teach the
gospel of savings and to proclaim
its urgency on every occasion and
through every possible medium.
The savings banks of New York
One
problem of the sav¬
Part of the
ings
days become a
Philip A. Benson
purchase
that are unobtainable
and which will be available
now.
in-
o n.
other
will furnish the means to
savings
that is going to
banks have
in
great responsibility
a
educating people to this fact.
Savings banks must also make
it clear that in promoting savings
strong
Just
and well
as
and
rendering
other
is always
services for
,
a
experiments:' There
sound middle ground
reaction
rank
between
so must we increase our
which banks may fairly ask re¬
strength and efficiency for what-; imbursement. The booklet of the
ever
responsibilities
may
lie American Bankers Association on
service,
and
rank
From the-breadth of
radicalism. '
his financial relationships with all
kinds
of industry arid: business,
analysis
and from the wide variety of eco!We own some real estate and;
plan for checking accounts is rec¬
nomic problems which confront
are perhaps still acquiring it. This
ommended.
v:
,Y
him, the banker is in a position
property should be reappraised
4. Conserve earnings and build to bring balanced judgment and
and
increased
efforts
made
to
clear thinking to each new pro¬
r'//
up reserves
/'///;'/'/
liquidate it.
We must 'continue
posal.
:,
/:/;//"/./ ; y'
every effort, to put our mortgage; /; To the extent that earnings per¬
•'
ahead.
■
the
100%
complete
or
,
.
.
•
,
portfolio on a sound basis, both
by placing all mortgages on an
amortized basis and by building
up reserves.
Mortgage
problems are very
real and urgent, and they must be
faced courageously
must also continue
mit, wisdom dictates the building
of
strong internal reserves,
A
period of great world economic
change and transition carries with
it the
possibility of some un¬
anticipated losses.
i'
and firmly. We
improving our
portfolio, eliminating second
bond
grade bonds, substituting govern¬
ments for them. Wehave frequent
opportunities of investing in new
government bonds.
issues of
;
I
anticipate
5.
customer rela- y
Strengthen
tionships
'
'
his
a
9. Promote the sale of Govern¬
ment securities
For
United
relationships
with
assisted
and
ent difficult war
to
be
in
he
that
which
the public of
obli¬
Government
States
full
lend
activities
all
to
war.
his
cus¬
them
con¬
a
which
is
it
have
problems is cer¬
an
advantageous
said
over
10.
structure
Use
;
now
V;
.
opportunity
every
to
to the public the
functions
of
our
banking system in the na¬
present
proper
Government
90%
financial
sound
and in the future.
ample, agricultural sections today
agencies
the financing of the
Thus, he will help to assure
gations for
There are, for ex¬
position later.
in
every
thoroughly familiar, it
imperative
support
which
with
reasons
banker is
is
to the pub¬
/•;/;/.
lic
war
tomers
tain
•
assist in the sale to
-
finally will end, and
the banker who has strengthened
The
structively in handling their pres¬
great future; for
Savings are
the,viewpoint of the value of^sav¬ our savlrigs banks.
vital to a healthy national life. We
ings to the national economy. We
must watch to see that no other
are
not seeking our own advan¬
agency
takes the time-honored
tage nor are we trying to increase
place of the savings bank in the
profits. We are offering our banks field of thrift and savings.
We
as agencies through which savings
must play our part now as good
they are doing so solely from
now
theories and
banks;; turning
Items, paying overdrafts,
managed
soldier trains for active;
a
war
tion's life
To
of the
extent
the
that
and
men
understand the operation
and
to
supplementing the State effort
are
using advertising media
promote savings for the benefit
from
pay
sources
envelopes
into
flow
may
and
other
govern-
4\
By HERBERT V.
Assistant Mice President,
Today
we
live in
one
workmen, as
true Americans.
PROCHNOW /Y/;
Bank, Chicago
•
.
disadvantageous to its sound
agricultural conditions have
their
loan
positions
relatively well and have reduced
Government competition.
<'
The First National
of those intense hours of history
and will be free from those vexa¬
maintained
Banking j
Ten Fundamentals Of Wartime
/./:> V:;
sections, bankers who aggressively
worked .with;farmers ■: to develop
soldiers, as efficient
women
local
are
agricultural loans.
Some of these loans are, of course,
not bankable. - However, in some
non-real estate
* <
im¬
in which the world seems
the
1940 will
patient to crowd the changes of a century into a cbecade. Vast and confusing as were
pressing problems of the 1930's, one may suspect that the decade beginning with
present bankers with responsibilities of even greater magnitude.
. '
' •
One thing is certain, the direction of our thinking now must be dictated by
primary objectives: first, how can bankers assist in the winning of a war that seems
6. Urge the
public to
save
of
tious
system,
banking
our
have
widespread
public
It will
support
which would
problems
functioning/;.4" More
proper
be
and
than
in the years to come, the
processes of banking and business
will be assessed and evaluated in
ever,
terms
of public
service.
instances, bankers have
been shortsighted in recent years
In
some
in not
urging the building of sav¬
ings accounts by the public. The
inability to obtain adequate earn¬
A New
Housing Era
(Continued from page 1076)
;
these accounts has been account, obtained funds by mort¬
the
customary reason-given for gaging the property on which he
this attitude.
Actually, however, was working. Through the trans¬
tined to change so significantly^
the
failure to
promote savings fer of that mortgage to the ulti¬
1. Maintain a flexible and com¬
A
consideration of
mate purchaser, the same instru¬
more aggressively would seem to
every nation in the world; and, economy?
petent staff of employees
these
objectives
indicates that
reflect a lack of understanding of ment frequently served the pur¬
second, how can bankers operate
The longer the duration of the
their institutions so that when the there are at least 10 practical fun¬
the significant role of savings in poses of both producer and con¬
damentals to be observed in war¬ war, the greater will be the loss
Commercial credit
war is over the banks may take a
banking
and
in
the economic sumer credit.
of trained personnel to the armed
time: /:/;//
in the ordinary sense was not
major part in reconstructing our
progress of a nation.
forces. ' Every employee should
used for con¬
There is no means by which a characteristically
be trained in one or more jobs in
struction purposes, and, when it
people can escape the necessity
addition
to
his own.
In other
at least a commitment to
for thrift.
It is through the me¬ was,
make a mortgage loan on the com¬
words, every position should be dium of
saving that a nation
two
ings
on
des¬
■■
covered
two
by
or
em¬
more
ployees.
2.
such
Increase
With
a
operating efficiency
fairly long
war
and a
progressively greater shortage in
persons
available
for
employ¬
ment, it is evident that operating
efficiency must be increased. The
inability to employ adequate per¬
sonnel may necessitate each em¬
BANKING In
New
ployee
Jersey
This
h
taking
can
be
over
more
work.
accomplished
greater efficiency on present
MINUTES
by
jobs.
FROM CORTLANDT ST.
and services to
profitable operation
3. Analyze costs
maintain
For
this large, modern New Jersey bank has
important corporations? unincorporated companies and
over
served
40 years,
individuals to effect certain economies.
Full information
on
request.
COMMERCIAL
TRUST COMPANY
»SSS»
of NEW JERSEY
N. J.
15
Exchange PI., Jersey City,
^gS.
Three minutes from Cortlandt Street
Member Federal Reserve System
and Federal Deposit Insurance Corp.
creates the instruments of
as
capital,
machinery, hydroelectric
and factories.
Economic
progress and thrift are as insep¬
arable as liberty and democracy
plants
in the United
There
are
States.
approximately
47,-
000,000 savings accounts.
It is
through these savings accounts
that many banks have their prin¬
cipal financial relationships with
the people in their communities.
A public responsibility of such
vast
proportions is one which
needs constant cultivation and en¬
pleted property was usually pre¬
sent. ■■/:'/
V : .//
■
/•
In dealing with the small build¬
.
er
without any
appreciable invest¬
plant or equipment and
usually with no certain prospects
for continuing in business, a form
of security that looked beyond the
credit of the producer to the value
ment
in
itself was essential.
of the product
Morever, for such a
builder, this
type of financing was usually
isfactory.- It took care of his
sat¬
im¬
capital requirements, and
it usually provided him with a
relatively painless escape in case
his sales or rentals did not mater¬
mediate
couragement, for here in no small
1931, over 58% of the gross sense the hopes and fortunes of
ialize.
;
earnings o.f our national banks multiplied thousands of men and
% The customary modes of hous¬
(which may be considered typical women have been placed in the
ing finance are not so well suited
of all banks) represented earnings banker's care.
to the large producer, whose cred¬
from loans and discounts; in 1941,
7. Work cooperatively through it needs are likely to be greater
the figure was reduced to 48.7%.
the American Bankers Asso¬ and more various than those of
In 1931, 24.5% of the gross earn¬
ciation and State associa¬ the
small
builder.
Since
the
ings came from securities; in 1941,
tions to improve operating large mechanized producer must
32%. In the same period, interest
have a considerable investment in
procedures
rates were steadily declining, the
average
yield on United States
By exchanging experiences with plant and equipment, he may need
credit to help provide these es¬
Government obligations decreas¬ other
banks,
inefficiences
can
sentials.
Since he must purchase
ing approximately 33%.
In that be eliminated and weak points in
materials on a large scale, he will
decade, also, service charges on operating procedures can be im¬
need credit to finance his inven¬
deposit accounts increased from proved.
By mutual cooperation
cost
accounting tory. - Since a considerable part
1.6% of the gross earnings to 4.8%. more' uniform
In
„
.
,
.
'
Volume 156
his
of
Number 4110
will
work
done
be
THE COMMERCIAL & FINANCIAL CHRONICLE
*
toward the latter in the war hous¬
away
from the building site and perhaps
considerably
in
advance
ing program.
assembly, he will need credit
to help tide over the period of
production.
He may also" find it
assist
to
in
that
extent
continues,
financing
real estate tend to
of
this
trend
the
dwelling loses its
quality as real estate, and the con¬
cepts of ownership, transfer of
title, and financing applicable to
dealers.;
For
the
To
of final
site
necessary
lose,
to suf¬
or
fer modification in, their applica¬
these
operations
does the mortgage on the individ¬
ual house or group of houses fit
the purpose.
For the most part
bility to the dwelling. The dwell¬
ing
as
a
repossessable
chattel
subject to such instruments as the
the
■
conditional bill of sale is
none
need
will
be
short
for
intermediate
.and
term
a possi¬
bility not to be ignored in the de¬
velopment of the financial pat¬
terns of the future.
!■
" -"/ "
V
commercial
loans, secured by the general as-;
sets and credit of the1 producer!
:
1081
.
The
! rather than his completed or par-;
ted
jtially completed products, -' Here
"should be
important new field: housebuilding
an
are
I of banking business.'! Since' large
production7;
.scale
has not only
war
business-as-usual
far
as
home finance
and
concerned; it
.
elimina¬
so
promises to
even
"us technically beyond
a
point where a return to business-!
as-we-have-known-it will be pos¬
necessarily:
carry
greater. concentration,
the
,financing too is- likely to be coii-;
New housing construction
■centrated. in fewer and -larger in-; sible.
!stitutions than!the..ordinary dwell-: privately financed can play a vital
ing construction loan ;of.' today.!; role in the period, of post-war re¬
*
The post-war period is likely to; adjustment.; The greatness of that
.means
"
'.bring changes not only in"the type role and the success with which
of: producer's "/credit .but ".in the, it can be played will depend upon
how well the new problems are
ways of financing- the purchaser
Jas, well. Although.;* it is possible analyzed and how thoroughly the
That, wartime savings may,, for a .needs for! new methods and new
."time and especially for The more points of view are anticipated, •'
.costly types of houses, result in, a
/greater than;usual proportion of
$lo^" ratio loan$/ii Js hardly likely;
*
jthat/
any
large: volume - of - low
'.priced house /construction can -be
maintained without- the low down
-payments and -long payment per-'
"iod
,
that
characteristic; of
'were
'home purchase-loan?In the .thir¬
ties.
;,:!!'.•
,
7,/ .Such change
there is likely to
be from this pattern will probably
as
be in the direction
down
payments.;
of
lower
even
In spite of the
•
!; (Continued ..from page 1073) ' v
bankers coming from all sections
of the country,- most, of whom are
elected to the Council by the state
bankers associations.
The Exec¬
utive
Council
York
sider
will
the -business
ciation
in
meet
New
September 28-29 to
on
and
policies. ,;.,
of
the
con¬
Asso¬
give direction to its
1 !//■!/!!/! 7..!/;
■
The ..problemsand. .situations
an unusually; high
savings, the years follow¬ .which will arise to-confront banks
ing the war are likely-to be unset-! during the war will probably be
-tied ^ears7; During the process of more - difficult' and; acute - than
probability of
level of
•reconverting war industry ..arid ;df
developing new peacetime ; pro¬
ducts, employment {opportunities
•.are likely -to ; shift, rapidly-'.new
migration may- occur/!aha- the
"those
will
arising Try peace: time, and
therefore
call "for
closer
t
" •
r'i.
as~>
sociation between the ABA and its1
members, and require
even
more
active service on the part of the
'.prospect of moving will at;least be ■Association.; Because, of this, As¬
present. In spite of their savings, sociation activity may be expected
.therefore,..large numbers, of :fam-! to increase,;..!And .in * developing
.ilies may be unwilling; to enter new avenues; of service, perhaps
we shall. .even: improve on what
into long term.contracts involv¬
has been done, in the past. '..
ing much risk of their, capital. 7
/.At .the -same time the; building y, The months ahead will 'call for
be
,'of rental; housing will undqubted,- resourcefulness. .! There,! will
problems growing out of the war¬
,ly continue to be handicapped, by!
time fiscal operations of the
gov¬
the;-same difficulties That,Tn/-spite
ernment, the drying" .up of. the ci-;
.of a great increase; in; the;
rental; viliah
economyj rising taxes- and
demand,- held it.back during the;
r
.
thirties.
The almost certain
tinuance
of
rent
con¬
restrictions into
the post-war years.may add to the
difficulties
dwellings
drdduciug.ntpewi
a"Vstraight > Rental:
.basis;-;-Thet;:;esqape^ffoip^tbiis i
dilemma may
velopment
be"' through the" d^-5
of
various
forms
of
the
continued
the
loss
of
things.'
low
interest rates,
manpower'arid other
Howeyer,
they
not
are
problems that will be insoluble- to
resourceful
'Already!
men.-
-resourceful -bankers
are
III e ;E a g I e; IS a s
C1 a ws
V .'!
many
meeting;
of; these i'difficulties! by! in- j
genious methods and practices,
some
operating
within the
lease purchase plan, under which
the down payment may be virtu¬
of good
ally
than
now
framework
ever
before. This is
undoubtedly )
operations to
eliminated
after
the
and
requisite
title
regular monthly payments.
The
working
passed
number
out
of
-
such
schemes will involve considerable
financial
ingenuity, me property
be mortgaged, but
possibly
in
the
may
builder's
owner's
name.
rather
Or
than
the
new
types of
housing operating companies may
evolve, which would initially own
the projects, gradually transfer¬
ring them to the purchasers—in¬
volving not only new methods of
financing but new forms of trus¬
tee relationships.
Or, following
the pattern of the Metropolitan
Life Insurance Company, financial
institutions
themselves
may
creasingly undertake directly the
ownership of housing properties.
A
different!
type of financial
problem may grow out of the new
technology.
The construction of
large sections of the structure in
a
shop
or
factory gives the house
new
demountability and mo¬
bility that was not inherent in the
a
traditional
stage
house
rooted
to the ground
on
at
every
which
it
stood.
While of course, it is pos¬
sible to fix a prefabricated house
as
firmly to the soil
as
its prede¬
cessor, it is also possible so to con¬
struct it as to make it readily and
trend
.<
effectively
"We
today than
are
may
we
the needs of the
peace¬
are
way
have
dual obligation as
a
vate institutions.
It is to
these
serve
institutions
tively as
as they do
ism.
As
and to
wartime
a
effec¬
remarkable
mechanism
the
people will they
war
their
instance,
effort
times
for
and
effort.
also
To
function
for
united
bankers
that
the
ations,
who
provide
bankers
w
-
military might is the
free economic system, and
great
our
matter
of life insurance, for
one
our
of
planning ahead
our O
great assets now.
;
es¬
!
"We of The Penn Mutual family
our
command
to meet per¬
It is reflected
fighting forces, in the miracle of
production lines, in the indomitable morale of
are
using
our
func¬
our
people.
every resource at
to
help make America stronger today for
stronger tomorrow for peace!
associ¬
these
of
'
I
five times as much protection as we did in 19171
the heroism of
in
associ¬
therefore, quite
sential
power
our
"This American characteristic of
leadership of that
the
It is,
we own
sonal emergencies is
D
provide these is the
of
ations.
call
a mighty
fighting Navy. We
con¬
tinued place in society.
The
a great,
known.
individual Americans.7 In the vital
war
needs of the
assure
productive
before.
supporting this system is the increased financial strength of
peacetime mechan¬
as a
ever
"Behind
that
see
as
they help to win the
serve
JOHN A. STEVENSON
ever
building the largest air armada the world
o
o
has
pri¬
that America is
true
training and equipping
Army, We have
as
of life/
Otherwise it
not tolerate them. Therefore
war
—
tions, have the continued whole¬
hearted
cooperation
of the bankers
and
support
generally.
In this
(/
President
respect the American Bankers As¬
sociation
to
serve
is
thoroughly equipped
you.
In
months ahead it will
your
marked
as
serve
ever.
a
needs
they
There
been
its
time
quickly removable at small cost.
has
stronger
requires that private institutions
serve
in¬
But it is also
true.
new conditions.
That is what all of us must do.
War is an intolerant taskmaster.
It
of
banking yet adapting their
behalf
more
the
critical
carry
on
intensively than
....
THE
Penii Mutual
LIFE INSURANCE COMPANY
in
INDEPENDENCE
SQUARE, PHILADELPHIA, PA.
Hi
THE COMMERCIAL & FINANCIAL CHRONICLE
1082
have
The
foresight,
>
Girardeau, Missouri
Shall
in
the
is
During this com¬
public.
taking
in
place
price
the
of
that
in
farm commodities?
we
living in
are
short, that
to
expect
inflation to a lesser or
extent, followed by de¬
flation.
The extent of the defla¬
fers
more
greater
does
equal to and In in¬
the extent of the
inflation which we have.
The old
flation
they once
possible to minimize
were.
We adjust ourselves to in¬
was substantially increased.
Sur¬ inflation if drastic enough steps
higher
prices
and
are taken in time.
But regardless creasingly
plus'and undivided profits, ac¬
v 1
all
the
Safeguards that are throw caution to the wind.
counts and reserves ample to meet of
I know of no business that suf-1
thrown around us, we must still
any contingency were built up.
favorable
These
It may be
for
conditions
operation of banks might have
been expected to continue had not
the
portion of the world's
population become
engaged in
war.
Nothing so disrupts the
economic
world's
equilibrium
followed
must
our
industrial
If you can tell
inflation
have
we
to¬
income
creased
able
taxation
possible
71%, and the price of all
|
wno
ily
-
i.1
J
1* *
HT
i
^1 J
continuously until corn
selling at $2 per bushel;
and
was
a
/tit
of
ployer
prices,
paid for
prices
the
land almost doubled
farm
the world
also
can
short
war
period.
that
remember
in
us
the
accept
made
securities,
of
10
months
notoriously
of
us
armed.
Best of all, most banks
today are, operating upder capable*
and
experienced
management,
:
management thoroughly awake to
know
Too
many
of
the ag-
vision,
the
■v-';.ST ; H-.-i'V.
conditions
undesirable
us
other
and
loans
eliminate
to
large
a
measure
munity safety and national great¬
ness.
un¬
y
'
mm
ap
in
rests
•••'
m
■■ ■
Finance In Canada
-
)
W. SPINNEY
GEORGE
By
,
'
V
•
>Vyy;| -
-
National War Finance Committee and General Manager of the Bank of Montreal
Chairman of the Dominion of Canada's
inflation
y
in oin it
a
the
war,
whether
em¬
war.
.
■
With
or
"
•
...
'
Government officials,
'
the
enlisted for home defense and in
and
war
Outlay in :
agencies making an effort to en¬
armed
the
1940i_:__-.:
year,
each
and
year
.
;
548 4
'570
the
*
current
total outlay
in the current finan¬
'.yy
:
...
y./'
the
of
outbreak
barely
income.
In
1%
purposes
national
the 35% level
passed.
And this year the
upward trend continues, the level
of- 50%
lurking just over the
horizon.
These figures become
even
more significant when it is
were
of the
1941,
was
85%
over
throughout
•
Vice-President
the
more than the wholb
income
in any- of
thb
1932 to 1935,'inclusive.
mobilization
The
for
resources
war
and
over
Founded
$180,000,000
realized that Canada's national in¬
this
will probably be
year
about 70%
largely
and
greater than 1938, due
to increased production
employment.
The magnitude
the
and
by-year increase in assets.
holders during a critical
of Canada's con¬
is illustrated
war
depressions of
It is
in taxation and
well
as
borrowing,
the introduction of
non-financial
kind, while new to Canada, and
involving
great
administrative
difficulties, in the main are pro*
during the desired results.
%
Taxation and borrowing have
been
the
main
instruments
war
over
a
a
century.
company
has
With
never
the
exception
failed to show
of two
a
year-
significant tribute to the confidence of policy¬
31, 1929.
r
y;
of Boston
George Willard Smith, President
-
Member Federal Deposit Insurance Corporation
life
insurance
company
of
civilian
spending since the start of the
war,
although the non-financial
(Continued on page 1083)
1
1836
mutual
■
of manpower under a selective
service program.
Controls of this
NEW ENGLAND MUTUAL LIFE INSURANCE COMPANY
first
ex-r
controls,
such
as
over-all
price control,
stabilization of wages and salaries,
priorities, rationing, foreign ex^
change control, and the direction
;
period that total insurance in force is now 40% in excess
of that reported on December
The
fight
against inflationary development?
have
required
tremendous
in¬
Government control
the fact that during the
(1854 and 1878), this sturdy old
-
L
Canada's
of
and Cashier
Chairman of the Board
the
,
are; tribution to this
wars
for
of
1938, and to
national
years
hostilities,: tensive
expenditures for defense
to
entire national income in the year
as
At
-
disbursements
in the present fiscal year arb
equivalent
creases
^
'
\
income.
STEADFAST PROTECTION
years
George O. Vas»
-
in
national
serve
in the
President and
:
31, 1939.
Expenditure for
comprises over 85% of
cial year.
j. by
Bankers, their clients and friends
Nation's Capital
:3,330
alone
war
pur¬
thereafter,
-2,479
war
;
year,
in the last pre-war fiscal
ended March 31, 1939, and in
fiscal
3,027
outlay
come
set out below:
opportunity to
Total
March
Govern¬
non-war
__
494-
expenditures in
10% of
Further,
did not exceed
year
prospective
>
ending March 31,
1943,. is nearly seven times the'
level of outlay in the year ended
Canada's national income.
war
.(Budget)
any
war
the
569:;
1,186
3,900
(Preliminary)
financial
purposes by the Do¬
Government, and by the
relationship of these amounts to
for
4
1943
'
minion
ment
—
1914-18
$540.
235
..
.
!
of
War-1
/ $34
804
1,680
1942.
war
the
,
$574
.
of
-
■
v
,'Non-
War
Total
Na¬
United
.
.':
Ending
March 31-i—:
are
of
forces
;
Millions ot Dollars
Year
and munitions
in use by the
weapons
made in Canada
y
'y;yy.....
-• -
-;
'
mobilized into wartime activities,:
public press, and numerous other
-
units/
reserve
Today more than 40% of Can-'
ada's economic energies have been:
poses
.
,
,
On
Disbursements
Resources
uncer¬
story of what tomorrow will
W*
avail¬
Washington, D. C.
of
bring in personal happiness, com¬
(4) Take advantage:of present
favorable
of the
little
need not worry about
we
gregate.
War
lay for
Robert V. Fleming
investments, such as
the fact that in this day
from
welcomes the
of. inflation may go
toward minimizing it;
way
making loans, we can
keep in mind how each individual
poor economists.
not students of
are
history of prices.
.
in
long
a
for to be forewarned is to be fore¬
(3) In
August, 1920, to June, 1921, prices
Banking Service
to the dangers
discourage
our
wild and
can
to lose both farms later.
of
lighten the public to the dangers tions in practically every theatre
of inflation, it is probable
that of war in the world.
*:y:;"'
of farm commodities tumbled pre¬ we may prevent inflation of the
Supplies from the United States;
cipitately. The price of hogs and worst type. -But is is such a have played a vital role in the
cattle fell to four cents per pound subtle and insidious thing that it
building of Canada's war produc¬
in this brief period.
Everyone creeps upon us before we are tion.
In
additioii, Canada and
The price level does not
remembers the effect of this de¬ aware.
the United States for some time:
advance by leaps and bounds, but
flation period on banks in agri¬
past have followed joint programs
cultural states.
From 1921 to 1927 in a gradual, steady climb. Prices
for
the
defense
of
the
North
more
than half of the banks in that seemed high a year ago or American
continent, for the co¬
two years ago now seem perfectly
agricultural states had closed.
ordination of war production, and
Many are now asking the ques¬ normal. After a while we become the efficient utilization of raw
tion whether the stage is being accustomed to higher prices and
materials.
;
• y,.;;;
set for a repetition of what hap¬
begin to think that the price level
The tremendous growth of war
will always remain as it is now or
pened during and following World
activity, and its impact on the
Canadian economy, may be meas¬
ured by the record of dollar out¬
space
to
sound
need
Government Agencies
help when the next emergency
it, as was done
during the first World War, only
existing conditions as
We
bankers
have
If it were
the' extra
employee, applied all
this, increase to paying for the
during
Most of
be
such
in
to call upon
the farm adjoining
danger
and into investment in
'i
.
cause
cents.
will
that
themselves
upon us.
endeavor
Sept. 9, 1939, the Canadian people, through their elected representatives in Pai>
be greatly minimized. In
ittAVt/I
+K
11f
words, the profits arising liament, decided to declare war on Germany and to join in the fight against Hitlerism.
At
our war
effort would go a
that time Canada had only 11,000 men in her armed forces, and virtually no war industry.
way
toward financing the
Today Canada's active1 Navy, Army and Air Force number nearly 500,000, all of
cost of the war itself if all who
receive an increase in income be¬ whom have volunteered for service anywhere in * the world: - Many thousands more are
pound
high
to
into taxes,
wheat at
$3; hogs at 18 cents per
and prime steers aL 20
As a consequence of these
to
The
distribution
wide
Bonds.
divert all
managing' Government
are
a
should
condition that they will not
enough profits
from making
unnecessary
reason
terms
place
fall
are sure to
Banks
tainty the banker's responsibility
lies in that
loan will be affected when defla¬ is boundless; that on the integrity
we
bankers
forget that • prices
tion: sets in.
If we make each of his character, the soundness of
which exist today will not exist a
year from now.
We are too prone individual loan on a sound basis,! his judgment, the clearness of his
prices.
because of the war program
today were in the banking j could
+L
business during the first World other
War and can remember how prices from
long
of farm products increased stead¬
H
and.
of War Savings
in
to do business
mortgaging the home farm to buy
against values—
measured
values
economics and
Certainly there is no better way
to forestall inflation than through
us
lend
(6)
make
to
We
(2)
the greatest dan¬
is true for the
This
banks
Most
progressed.
As an
example, Bureau of Labor Sta¬
tistics show that within the past
three years average factory weekly
earnings
have: increased
50%;
prices on farm products have in¬
already
of
that
been
has
Most
with.
days that
The answer is "No;">
at least our operating ex¬
customers
that banking has to contend
ger
destructive is the rapid pace
so
at which it moves.
banks
It is
inflation.
feature about deflation that makes
not realize the extent to which it
commodities 31%.
should
Or,
rather,
I
say, from the period of de¬
which inevitably follows
permanent.
it
than
banking.
day, I can tell you where we will
have
deflation
tomorrow.
The
Many do
threat, it is a reality.
where
me
preparation first for de¬
fense and now for carrying on the
war.
Inflation is no longer just
a
goes
up
still true.
of
equal proportion.
ma¬
in
chine
is
prices may be ex¬
pected wherever there has been
inflation and in an approximately
by
acceleration of
"whatever
down"
come
Deflation
inevitable defla¬
tion.
Right now our economic
stability is threatened by the in¬
flation
brought
about
by
the
is
to
that
adage
as
be
ratio
verse
War brings inflation which
war.
will
tion
the greater
as
inflation
from
sufficiently large to meet the evil
■i
re-;
never
pay
good
a
But we can raise our for
1
.*
'*;■
requirements.
If
we arises.
ll .banks
will
observe
these
loaned
up
to three-fourths the
value of cattle when prime steers; practices,: there •* is ample reason
were
selling at eight cents per for believing that the banks of
pound, we can perhaps loan one-; this country will be' able to take
half or less of their present price* the next deflation period in much
What part can we as bankers better stride than they did the
play in preventing, or-at least in last two major depressions. Banks
minimizing, inflation?
■
',i have never been in better con¬
(1) First of all, we can avoid dition to meet any emergency
making loans that tend toward that may arise. The fact that we
inflation.
are being so thoroughly educated
.>!,./
era—i
a new
will
we
conditions
turn
a
is
margin
conducting1^
War J.
Will land prices again re¬ perhaps continue to advance. - It:
sound, profitable banks, and to
is
onjy a step to the conclusion;
furnishing a well rounded service spond to the spectacular rise that
to
and
penses.
withdrawals by depositors, bankers were able to devote themselves to de¬
paratively short period the capital
structure of well managed banks
order
to
to
loans,
in
we are
must continue
We
our entry into the present war were as nearly satisfactory as this generation of
will ever experience.
Freed of the worry of maintaining cash reserves, and the
veloping
of
men
assets. " This
to
liquidate all slow assets.
(5) Pursue a conservative pol¬
icy in paying dividends, to the end
that we may build up reserves
making loans
period of high
cease
price levels?
preceding
fear of abnormal
timfe
reason
judgment,
good
we
because
intention, nor am I capable of entering into a profound discussion of the
of inflation.
I am interested in considering only the impact of inflation on banking,;
Conditions affecting the operation of banks during the five-year period immediately:
bankers
other
were
we
desirable
banking
the
some
vision.
,
It is not my
causes
into
*
for
because
than
By CLYDE D. HARRIS
President, First National Bank, Cape
gotten
business
Impact Oi Inflation On Banking
Thursday, September 24, 1942
chartered
in
America—1835
Volume
156
Number 4110
THE COMMERCIAL & FINANCIAL
CHRONICLE
War Finance In Canada
Transportation In Wartime
(Continued from page 1082)
controls
have
ward,
in
hands
multiplied and in¬
importance with the
growth
of
pressure
on
creased
steady
Canada's
rials
budgets
to
the
Commons
each
have
been
since
the
of which
to
budget
designed primarily
the rising tide of
civilian spending.
The
proportion
of Dominion
Government outlay - covered by
in
Sep¬
tember, 1939, was relatively mild
in its tax proposals, as idle re¬
sources
were
present
large
scale and there was no pressing
need to discourage civilian spend¬
ing.
Over the next three years
production
for
on
a
surged
war
the
June, 1942, imposed
extremely heavy tax increases, all
has
war
in
hold
ended March 31, 1939, and in
each fiscal year
thereafter, is set
out in the following table:
1
* y
(Millions of Dollars)
Year
•••'■,
.
L L
Ending March 31
iv<-v:rt-: (•Prelimi-'■
Total outlay
Per
cent,
Li—
outlay
-1943
' i $1,080
$3,027
L $3,900
857
1,462
2,050
W
75
51 %
269
•
.v
823
.
1,565
,
most
middle
expected to produce four times
the volume of income that it did
ih
the
last
fiscal
31, 1939.' -
pre-war
ended March
'
The
tremendous
taxation
since
1,850
began is due to three
have
for
in
a
The
war
the
levels,
substantially as a
conditions, have been asked
relatively large contribution.
severity
of
the
taxation
on
be
causes:
been
have been raised and their
income
upper
from the
seen
which
increases
in
personal incomes may
sets
out
following table
a
comparison
personal income taxes payable
cover¬
of
on
extended; third, the bases of various incomes at
pre-war rates
practically all taxes
have
ex¬
and at the new rates established
panded due to increased trade,
by the budget just brought down
employment and income.
{
age
.
While tax increases have fallen
INCOME
June
on
TAX
Nil
1,000
Nil
1,250
$11
.1,500; VV
L..-v 2,500
10.000
940
50,000
-Under
the
35,703
81,137
\ '
800
'■
Under
taxpayer.
shows .the
which lis
tion
of
of
amount
refundable
level.
come
The above table
.
total
at
taxes
each
This refundable
total
taxes
is
in¬
por¬
refundable
qf life insurance premiums, prin¬
cipal payments on a mortgage, and
fund payments; the bal¬
if any, being refundable to
the taxpayer after the war ; with
pension
ance,
accrued interest at 2%.
In effect,
tjiis refundable feature'
operates
.
as
mirjimum
a
savings, require¬
ment as it equalizes the base from
which voluntary savings start and
able
to
years
amounts, by
save
of
way
life
insurance, mortgage payments,
pension funds.
In
-
have
the
field
tion,
income
tions
in
_
,
,
.
of corporate
taxes
the .last
on
or
taxa¬
corpora¬
fiscal
pre-war
these
taxation
duced
1939, pro¬
$85,000,000.
In the
about
about $770,000,000.
rate of tax
40%
of
profits,
profits
excess
Which
20%
is
and
produce
The minimum
corporations is
on
and
the
is
tax
rate
100%,
refundable
corporation after the
now
of
of
the
to
January,
Each of these four public bond
issues
was.) successfully
over¬
subscribed.
The
Victory Loan
operations' in June,
September,
June,
1941
February,
the cooperative efforts of
18,000 persons throughout
Canada, including about 1,900 per¬
some
•The
1940
1941, and in
from
sons
the
investment
In
general,
work
first
in January
were
same
ment
bond
distributed
manner
issues
sold
as
in
much
pre-war
.
the
Govern¬
loans, individual investment
dealers
and
loan, 't
others
being free to
aver¬
people
subscriber to this
a
.1
say
I
can
the
the
and
this without boast¬
carried
was
out
by
which
had
of
took
the
Loan
had
and
the
been
over
1941
cooperated
so
The rail¬
be
to
Those
the proposition
on
to
freight is
rolling and that
move
cars
sin
loaded
unloaded
is
allow
to
which
when
far
there
breakdown and
cannot
they
reach
has
been
no
serious conges¬
no
tion in domestic
Vic¬
with
the task of
promoting the sale of
War
Savings
Certificates
and
Stamps since their introduction in
May, 1940.; - The National War
been withdrawn and the railroads
are
carrying not far from 800,000
barrels per day, much of it from
the remote Southwest.
Much of
the coal moving to New
England
has in tne past
come
ton
collier
Roads
The
submarine
first
grams
were
people
entertained
the
to
railroads
<
do
engaged in establishing
started,
the
be
would
many
America
are now
moving to Gulf
ports and thence by rail to east¬
ern destinations.
A great deal of this diverted
traffic must necessarily be hauled
long distances.
Because of this
the further fact that
and
being loaded
to
traffic.
public throughout the en¬
this continuous effort to
of
at
than
more
;
The (fate of each of these
the
amount
money
of
bonds
issues,
com¬
Yet
in
up
under
the
rapidly increasing
1941, they set an
record
of
ton-miles
You
to
sold,-
new
and
number of
ports
y;;
L
V;-
New
Money
$200
—
'yy
•
Number of
Conversion 'Subscribers
$50
300
25
730
107
845
152
178,000
ports
151,000
[•'•
dian
968,000
living standards
1,681,000
compete for subscriptions.
In
the period
following
of
freight
tember, 1940, Canada's war effort
experienced sharp expansion and
the
.
trend
( clearly that
of
events
indicated
Governmental
expen¬
car was
cars
year
traffic
put to
expansion.
There
on
of
any
the
are
of
in
that
one
cars
equal to
and
compared to
1929.
the general increase
has
continued
and
wards.
...
cooperation
United
Nations,
-
grimly
sacrifice
resolved
and
with
the
other
Canadians
to
make
are
every
to
bear
whatever
burdens may be necessary to win
this all-out
struggle for survival.
the
an
railroads
extra and
a
have
very
in
been
heavy
ex¬
to any
lines
condition.
present
no
accumula¬
at
cars
The
case.
liquid
a
ports which
are
our
East and West coasts
It is true
overseas
freight
important extent in freight
so
it is not interfering
the
domestic
movement
of
traffic.
Freight
must
cars
not
be
used
for storage and
they will not be.
Storage depots of large capacity
have
been
and
are
being con¬
structed
by
the
Army;
much
ground storage made available by;
the railroads is being
used; the
storage and warehousing industry
of the country has been well or¬
ganized to give effective aid. You
need not be alarmed when
you see
war
products in storage.'It does
not
that
mean
has
system
the
our
transportation
broken
beginning
down.
From
knew
that it
would be necessary to store
great
we
quantities of war products in this
country, not only to maintain ade¬
quate reserves but until deficien¬
cies
be
in
overseas
shipping
could
P;::
overcome.
Vv
While the railroads have done
splendid
been in
job,
a
they
would
plight if they had
help of their erstwhile.
the trucks
and
buses.
of this country
carrying
a
have
sorry
not had the
at
ton-miles
as
The
have been
least 13% as many
the railroads (I be¬
lieve this to be
an
underestimate),
and much of it is the kind of traf¬
fic
that
is
railroads
most
to
difficult
handle
for
the
economically
and
efficiently. The buses have
large extent taken the place
of local railroad trains, and they
which
between
alarming.
way
and
to
formerly moved by water. For a
long time no ships have operated
a
serve
thousands
have
of
little
communities
or
service.
no
railroad
The
fact is,
also, that the railroads themselves
are
among the largest users
of
passenger
The
trucks
railroads have had to take up the
entire burden of transcontinental
woven
traffic
will
through the Panama Canal.
the Cana¬
headed down¬
are
overseas
considerable
of troops, but also because
they
have been called upon to carry a
great volume of freight which
popula¬
Civilian wartime
economy.
statements
seen
the
on
in
are
tions
tensive and continuous movement
.
In
Sep¬
in
public borrowing operations have
expanded to unprecedented levels.
Direct controls
of
many
kinds
imposed
longer
no
This is not the
are
trucks
war
being in the armed
Rates
of
taxation
and
have been
or
blocked.
l'oes,
This
now
conversion, and the
forces.,
subscribers, are set out
of
car
large
freight
leading
to ports, thereby
creating the im¬
pression
that
the
ports
are
at
use
strain, not only because of the
tion
is
effect that there
accumulations of
a
one-third
are 1
male
week
have
may
the
cient
steadily
growing in' strength, nearly 15%
adult
rate
accurate index of railroad per¬
formance. It understates the facts.
year,
tionary
Canada's
the
The number of
an
freight carried, and because of the
rapid circulation and effi¬
gest and most important jobs.
In¬
dustry has undergone a revolu¬
of
double
loadings.
loadings per
cars
more
Canada's big¬
and
on
car
with
addition
forces
are
heavily,
able
In the past three
stand
the
all-time
tire year,
change
cars
the average more
ton-miles are increasing
be
not
that the railroads would not
to
armed
im¬
creased. Many commodities which
formerly came into eastern ports
by ocean from the Gulf and South
that
their
able
strain
service and
has
menace
paired that method of supply and
the movement of coal by railroad
to New England has
greatly in¬
fear
predictions have been
years,
mon
an organi¬
province through¬
war
from Haftip*
and barge.
is in storage at the ports and else¬
where. But it is not being held
zation
are now
by
that it has been called upon to do.
When our great production pro¬
out Canada which will undertake
the sale of Government securities
the
—-—*—-——
in
well maintained.
tional War Finance Committee is
in each
—'
day by tank cars to this territory.
Today the tankers have largely
transportation. It
has done adequately and well all
committee
entrusted
based
way
Thus
committee
directed the
United
their destination, and thus to con¬
vert them into storage facilities.
Committee.
committee
new
functions
the
carriers.
unforgivable
cars
in 1942, the Dominion
Government established the Na¬
the
have
keep the
be
Early
Finance
are
the
the
being
done by the other members of the
organization.
War
did
plans
re¬
with
work
canvass
who
of
had their plans ready.
and
to
general
the
not
that
brokers,
about
„
shippers
the
cruited from the staffs of invest¬
and
until
forget .the lessons
taught them by the last war. This
time they were
well organized
large
persons
the
roads
organizational
of
created
well with
brokers.
canvass
not
States,
Canadian
and
corporate and individual investors
The...
997
two
The
age: one out of every seven
in Canada was
325
and September, 1940,
ranks of
dealers
.
837
i
domestic
come
to
February, 1942, established new
be
supplemented, from time; to
highs in the dollar amount
time, by large scale borrowing
of bonds sold..
L
operations comparable to the First
! Further,
in total number of
and Second
Victory Loans.
subscribers,, the Victory Loan of
From
this
brief
February, y 1942,
exceeded
review, it is
any
$250
1942
portation
functions
somewhere
near
100% in efficiency.
The major credit for the excel¬
lent performance must go to the
carriers and their employees and
was
record
Total
1940
gether is transportation. We can¬
not fight a war without
it, and we
cannot fight our best unless trans¬
,
-(Millions of Dollars)
Date of Issue—•
that
thing
one
part.
For
several
willingly with the knowledge that Finance
Committee, staffed largely years, in the face of declining
these
policies,, while involving by
persons
who had previously traffic and a great increase in
short-run' hardships, will produce
been associated with the
Victory competition from other forms of
the best; results over the longer
Loan
Committee % and
the
War transportation, the railroads had
term...,,
V\
j."
: Savings Committee, now has the permitted their
supply of both
In raddition ; to these
large tax
responsibility of promoting maxi¬ cars and locomotives to decrease
increases, a substantial amount of mum
voluntary savings by all materially.
For example,
com¬
borrowing has been necessary, and classes of
Canadians, and of chan¬ pared with 1929 when traffic was
by far the greater part of it has
neling these savings to Govern¬ at a peak,, freight cars available
come
from non-banking sources.
ment use:;,
through the sale of for service had gone down in
Public
borrowing
operations Government securities.
number more than 30%, and to a
since the start of the war have
The first big borrowing
lesser degree motive power had
opera¬
consisted of four, large bond issues
tion; conducted by the National also decreased. Both cars and lo¬
which L produced
v'$2,075,000,000 War Finance Committee was the comotives seemed old
and the im¬
of new money, net ;sales of War
Second Victory Loan in
February, pression was widespread that be¬
Savings Certificates amounting to
cause
1942.. ; '
of
the
years
of poverty,
over
$150,000,000 up to July, 1942,
road-bed and track had not been
•At the present
time, the Na¬
and net sales of non-interest-bear¬
below:
war.
The
first of this year.
volved
obvious that
will
opera¬
created to distribute this issue in¬
production
tax
popula¬
resources
possess.
1939.
borrowing
entire
transportation
reasonably close
to such a performance ever since
the beginning of the
emergency in
cooperative method of sell¬
tory of the Dominion.
profits
all
that ties all of these activities to¬
Our
ing Government bonds to the pub¬
other public bond issue in the his¬
excess
the
and
nations
the
was
income
on»corporations
of
tions
—
but
to the
current.year it is:estimated that
tax
navies,
ing, since I have had compara¬
tively little to do with it, for the
Office of Defense Transportation
which
accepted
and
.
ended March 31,
year
armies
loan, or First Victory
Loan, in June, 1941, marked the
change-over from the competitive
tory
1,000
in
———
the
system has
'vV;V-.y'v
1,000
•
increases
it
The third
1,000
78,987
or
without creating hard¬
ship for those who are obligated
war
34,553
;
that everybody; in one
another, saves a reason¬ ing certificates amounting to over
minimum amount during the $9,000,000 up to the present time.
assures
way
circumstances,
Governmental
tions.
This
500
1,000
.
currently to the extent it is offset
by payments in. 1942 on account
these
come.
became obvious that the Canadian
108
462,954
tremendous
to the
time to
some
people would have to greatly in¬
crease
their savings and that an
organization sufficiently large to
tional
"250
Y
4,762
39,921
of total income taxes is refundable
a
Nil
'
317,925
part
budget,
increase for
to
$25
K
1,878
f779-
Candians
new
Nil
651
'
;
•
14,944*
r;;
Refundable
Nil
V& 217
$22
177
\
and Governmental
war
borrowing needs, would continue
the
Budget
3U $50
Nil
-
,
; 8oo
473,104
*
.
:Nil,
•'
•Nil:
y •;
800
1
,
/> Nil
.
800
■;•
40,416
318,600
,
120
400
'
5,112
15.330
100,000
500,000
:
•>: 200
2,128
,ir
80
826
•
.
265
-New
; ioo px
-
367
/
&
74
i;;
;•
;;V
267
.
22
LJ
5,000
-
'
■
Total
Pre-War,,
Nil
,
$20
172
,r
v.;
•/ -
-Married Person—No Children-
$40
■
;
23, 1942.
-Single Man-
$700
only
ment-dealers
PAYABLE
-New BudgetPre-WarTotal
Refundable
Income Level
not
lic. ;The. organization which
result of
very
first,
introduced;
second, the rates of existing taxes
taxes
new
in
on>persons
lower income groups, whose
aggregate earnings have increased
war
the
and
have to-^-
we
have to be established for future
!
52%
the
year,
expansion
revenue
heavily
as
productivities
diture for
;
; Taxation in the current fiscal
year ending March 31, 1943, is
such
war
every potential purchaser
of: Government securities would
(Budget)
'
.535
,
8T/'o
Borrowing" needs
V1942
$804
,499
receipts of
19*1
1940
$574
:Taxation, receipts
Total
day brings into action,
canvass
nary);
1939
I
greatly appreciate the way in which the American Bankers Association has
co¬
operated with the Office of Defense Transportation.
Not only has our suggestion been fol¬
lowed that vacations be
spread and arranged so as to begin and end in
mid-week, but the
Association has also called off its annual convention.
Instead of the
convention, it is point¬
ing in this magazine the papers which would have been read at the
convention, and I find
it a pleasure to add one of
my own.
;'v:
were
year
v
Coordinator of Defense Transportation
.
down
taxation in the last pre-war fiscal
up¬
•
increased
the fourth in
first
j The
which
income
public
ments, the second budget in June,
1940, the third in April, 1941, and
pre¬
Canadian House of
war'.began,
pushed taxa¬
higher levels.
;
;
V
of
tion to
the
greatly, and shortages of resources
began to multiply with increasing
rapidity.
To meet these develop¬
of men, mate¬
machines.
resources
and
Four
sented
By JOSEPH B. EASTMAN
spendable
of
1083
at
a
time
when
our
war
with
Japan has made it exceed¬
ingly heavy. In the past, the East¬
ern
Seaboard
has
been
supplied
with
petroleum mostly by tank¬
operating on the ocean from
Gulf ports.
During the week of
Pearl Harbor, the railroads car¬
ers
ried about 70,000 barrels of oil a
and
buses.
They
have
them closely into their rail
operations
and
their
efficiency
drop considerably if they are
deprived
of
the
use
of
such
vehicles.
However, the job ahead is big¬
ger
and
much
has gone before.
son
harder
for this lies in the
critical
materials.
(Continued
than
what
The primary rea¬
on
shortage of
There
page
is
1084)
not
-
J&WubkJ sirflfe.jk&L&JIIUA u l/i/I-wl^/iliiiuiid*
fttt«WW>flWfcB^«^^
Wv^s^smtr^WTft^^is^wwwiw^ssmtwi^a^
*1
Mft
and for
war
A Wartime Investment
after,
Policy
been
central
in
than
districts
to
counts
creasing
earning
at
capital
ac¬
is
assets
rapid
a
uncertain
so
and when the ratio of
de¬
As
rate.
a
rule, banks should invest only in
high-grade obligations.
reserve
in¬
is evident that the
cities^-it
is
future
the
at present
as
necessary
so
when
4
vestments of the reserve city, and
ing prospect.' It is
k'
bed of roses
no
acquisition of Government But this is not a period when any
securities
can
be
free
of risks;
by the banks should business
follow a definite policy based on When the whole country faces the
careful study of the
a
institution.
policy
A
requires
that
of
without
the
war
enough
In the whole program
the
the major
banks
principal danger is that this
not
as
ijmge outpouring of buying
deposits
being forced to sell me-;
this prodigious expansion
power,
of bank
In this connection the question dium—or
long-term.;obligations. Credit, will force up prices and
particularly of the country, banks often arises as to whether 'they This can be achieved by spread¬ the cost of living—in other words,
must carry a higher return.
The should buy AAA corporate bonds ing the maturities over, a period;
>jvill bring inflation upon the
central reserve city banks must or Government obligations.
As a of several years.
;v:
•;
; Country. '■,'
also take into consideration the general rule one may state that '
;
We have been living with this
The increase in investments will
fact that they are bankers' banks tne best AAA cOrporates should
be accompanied by a "corresponds fear so long that we have become
We com¬
and, that, therefore, their daily yield at least one-half of 1% more ing rise in deposits and by a re¬ a little hardened to it.
switijg ,in deposits percentagewise than Government bonds with a duction in the ratio of capital fort ourselves with the thought
is bound to be greater than that comparable maturity.
that nothing serious has happened
There is accounts to earning assets.
The
df banks located in smaller local¬ po credit risk attached to the lat¬ smaller this ratio
But inflations are cumula¬
is, the greater is yet.
ities. Central reserve cities, there¬ ter, they are eligible for discount the
necessity to improve the qual¬ tive and the present course of the
economic trends is painfully like
at the Reserve banks (at present
fore, have endeavored to hold a
ity of the existing assets. A bank
considerable proportion of their at par) and thus can readily be should never sacrifice "quality for that of the first World War.'
■ '
,
securities
Government
total
in
obligations. In fact,
end of December, 1941, of
shorter-term
the
at
Government holdings of
the total
York
New
City
banks,
member
Further¬
cash.
into
converted
is well known, the Gov¬
more, as
ernment
in periods
market
bond
supported by the Fed¬
authorities whose
of stress is
eral
Reserve
including direct and indirect obli¬
open
market operations have been
consisted of bonds,
22%
of notes, and'4% of bills.
On the other hand, of the total
direct and guaranteed obligations
held by the country banks, 67%
in
50%
gations,
The banks in
consisted of bonds.
the central reserve cities will con¬
tinue the same
policy.
'
The problems that confront re¬
:
approxi¬
those con¬
fronting the banks located in the
large financial centers.
However,
banks
city
serve
mately
the
their
since
of
volume
de¬
time
since their
subject to the
and
larger
posits is
deposits
are
as
same
are
not
swings, they
in a posi¬
amount of
medium-term obligations.
same
tion
to
buy
Both types
endeavor
are
larger
a
of institutions should
diversify their Gov¬
to
holdings with maturities
of one to 10 years.
The banks
in the central reserve cities will
ernment
fay
emphasis on the shorter
more
^maturities while those in the re¬
serve
cities can absorb a larger
of
maturities.
In
each case the percentage of longer
or shorter maturities will depend
amount
longer
I.X1C
UUSIUUU. of
UIC individual
the position Ui the JL1IU1V1UUC11
institution and on the amount 0f
On
VU
earnings desired by , the manage¬
ment.
;
..
:
"
■..
banks of necessity
The country
of
Based on
the type of securities outstanding
how, these institutions would be
will, buy
percentage
larger
a
longer-term maturities.
advised
well
maturities
with
eighths
1%
of
This
21/4%.
to
imply that in¬
should not hold longer
maturities.
since
However,
difference in
yield between a
the
12-
maturity and a 25-year ma¬
turity is relatively small it is
year
banks
whether
doubtful
Medium-grade - bonds
should
have a place in a bank's
..
the
reach out for
would
longer maturi¬
;;i The amount to
be invested in
each maturity will depend on the
type of deposits of an
individual
the composition of
Institutions operating
bank and upon
its
assets.
time
With
assets consist only
tent
of
larger
and
deposits
mortgages
whos^
to a small ex¬
-
may
invest
a
proportion in longer-term
obligations.'
A carefully thought
through policy of maturity distri¬
bution offers a high degree of
liquidity
combined with
earnings,
safety
and satisfactory
converted into
cash without
loss and thus afford a
any
high degree
The longer maturi¬
while 'f subject to
moderate
of liquidity.
ties
offer"
fluctuations
return.
;
satisfactory
a
"
.
:
should be util¬
banks to put their
assets in as strong a position as
possible.
A sound portfolio is
always advisable but has never
;
The war period
ized
by
the
tate,"to ultimate investors is
now
desirable than ever, because
more
addition
the
strengthening
leads
it
banks
to
to
reduction
a
in
!-.•
great economic and social changes.
Medium-
It has already increased the pror
tirely without analysis.
grade obligations of those "cor¬
porations whose credit position
has improved as a result of the
war
and whose outlook for the
satisfactory.' should
is
future
'
kept for now.
Real estate obviously
real estate.
not
liquidated
should be
and
is
as
fast
as
As regards mort¬
the increased national in¬
possible.
gages,
utilized
the
financial institutions to accelerate
should
come
be
auctive
capacity
,
of the
country,
stimulated the production of new
materials
caused
and
great
dis¬
locations in industry and trade.,
is
banking system
strong
A
sound national econ¬
a
by
a
meas¬
butside
This
tion.
are
J>
,
.v-
11
not
merely
that
emergency
meet any
arise but also
to
may
assist in the conversion of
industries
to
peacetime
our
produc¬
tion after the, war and to finance
the
huge
consumption of civilian goods
movements
ing with savings deposits. ?
could
also
Banks
volume
of
production
cal
the
desired
maturity distribution.
Be¬
deciding on a definite" invest¬
ment policy the management of
each bank' should ask, itself the
fore'
over?'7
in
a
A
very
the
itself
favorable position after
if its
war
find
will
bank
(Continued from page 1078)J
earning assets
greater than if the bank
liquid.
•
• ;
•'
Within the past decade the assets
of banks have changed markedly.
smaller
proportion is in loans,
larger part in cash and govern¬
ment
securities.
Mortgage
and
a
security
corporate
ital'funds
are; smaller,
virtual
for
bank
well
securities
distributed
maturity, other high-grade
obligations to which there is very
little
credit
no
or
risk
attached.
smaller institutions, particu¬
The
but will be in a
arise in the future
position to finance
the
needs
gency
that
may
..legitimate
of its, cus¬
/
tomers.
Although
every
effort is being
made to finance the deficit of the
Government 'through
War
the
Bonds to
banks will be
absorb
a
the sale of
ultimate
huge amount of Govern¬
ment securities.
The existing ex¬
cess
reserve
balances
that
will
created
market
be
authorities
operations
lowering of the
and
those
by the Re¬
through
or
and
open
through the
absence
of
a
Bank
stock.
such
vestment
as
to
attract
market
earnings
new
"
in¬
capital
New
money.
be earned. '
must
j
ex¬
can
into in¬
on
do
politi¬
a
which
the
The
little.
very
at the
also
are
tion
not in his special
field.
;
But one* responsibility lies di¬
rectly at his door/ It is the sale
of government securities outside
the banks in the greatest possible
amounts to'lessen bank credit'in¬
flation/ Bankers
front
.
/
A commonsense general view,
and
recognizing sharp differences
between ibanks, is that this situ¬
ation is not alarming but does
suggest certain precautions:
1. Banks need to husband their
capital
by
conservative dividend
in
are
out in
way
getting; this Job done.
a fine start both
They have made
their
in
their
i'h
and
customers
with
offices
own
giving leader¬
ship to the War5 Savings; Bond
organizations/ and 1 the ./Victory
Fund committees.,'
•;."
We
have
shall
bankers
buy for
be
to
the
bonds
not sold to others. / But
that is in many ways the easiest
ready
to
our
banks
the
require¬
banks to
at
about
the
prevailing
Treasury
rates
of
terested in
For those
bonds.
in¬
list of the individual
a
securities, it is suggested that in¬
quiry be directed to Lord, Abbett
& Co., .Inc.; 63 Wall Street.
Ask
for the Sept. 17 issue of Abstracts/
*
*
*
J;
•
Letter of Sept.. 16
News
Shares
Business
American
The
C
advisesj
"Buy diversification and manage¬
when
buying /securities.".,....
New additions to the portfolio in
ment
Tobacco,
Hubbell; '
American Telephone 3s, 1956. In¬
creases were made in holdings of
August were American
Wool worth,. Harvey
Commercial
Investment
,
Continental
Oil,
" Trust,
Cork
Crown
&
Cutler
Hammer,
General;
American Transportation, ' Gobd? '
rich, Gulf Oil, Macy, Pure Oil, R.
J. Reynolds, Chesapeake & Ohio,
American Water Works 6s, 1975,
Associated
'Electric
4%s/ 1953,'
Electric Power & Light 5s, 20301.*
/
Seal,*
Eliminations
'
Great Northern
were
5fe 1952, and Kansas City South-'
ern
5s, 1950, while holdings of
Central
York
New
decreased. ;
were
3V2s,
1952,:
7'^%\/C5;
:
"How much protection for divi¬
dends?" asks the current issue of
A chart is shown to
the estimated dividends
groups with their
estimated net earnings after taxes
Keynotes:
compare
stock
four
of
this year.-
J'/,/
J
;
"Despite the generally lower
trend," adds the bulletin, "there
is still a generous margin of pro-
'
tection for current dividend pay^
ments."
The
dividend
and
earn¬
ings estimate given apply to the
four groups of stocks represented
in : Keystone:
Custodian^ Funds
Series
and
<
: >
"SI," "S2," "S3" and "S4"
"/
follows:
are as
Dividend and
*
^
•
i r;
Earnings Estimates
>
:
/for 1942 (% of current market);/
*Stk; Group—
Divs.
/-•
-
Earns.:
5.4%
"Sl"__.
.
:
7.4%'
-• 16.2
'V
part of our task/ Our greatest re¬
"S3'L5.2
14.2 ; ;
sponsibility is selling bonds to the ;; ;"S4"u3.8 ;19.4;.
people.,, / J::,:; J'T- /'
^Stocks.held';in Series indicated.;
8.5 /
.
.
'
i—
Wartime Transportation
(Continued from page 1083)
enough rubber, steel, copper, and
other materials to go around. We
must bear in mind that this
coun¬
try is engaged in the most gigan¬
.- .In conclusion, the bulletin states 7
that, /."Since turrent prices. ap-> "
parentlyv reflect over - pessimism I
taxwise, improvement in stock
prices/seems
highly
probable/
Waiting until good
has
been
never
of production in his¬
It is creating, mechanizing,
and arming great military' forces
of its own.
It is providing arm¬
aments and
supplies for our allies.
building great numbers of
ships which can carry the troops,
the armaments, and the supplies
to
the
uttermost
parts
of the
earth.
It is creating great naval
and air forces which can protect
It
is
,
should
while
doing vigorously the war
lending required.
1 3. Maturities of securities, even
the
governments, should be relatively
short-. r
'
:/ //;•■/
is known /
profitable
Bond
<
V
/
;
Fund's
Sep-/
tember
report
on r investment
holdings .also
contains a', table'
showing the year-by-year growth;"
.
.
record of the Fund.
Here it is: v
.
•
.
'
.
Net Assets",' s; •./
Date—;
July, 1„ 1938
July.. 1, 1939-
$36,014.21 v. /
2,828,227.80
July 1, 1940___._ 5,661,312.19 - ;
July. 1, 1941_
8,242,883.46?
of the enemy.
policies.
•.
v//'•/■';-■
2. Venture assets, old and new,
be
scrutinized
closely,
i
„
4.
Earnings should be adequate
to
provide a steady increase
capital and reserves.'
in
It is
place of hundreds of thousands
of square miles of rubber planta¬
tions which
of
allocating
of
critical
needs
ceed the
high taxes. •;
millstone
the
task of
materials
which greatly ex¬
supply, is banking on the
ability of the railroads to carry
on • and
do
the
ever-increasing
among
rates and the
nether
But
terest
even
and
at present rates
of in¬
Nashville, Chattanooga &.
Ry. 1st 4s, 1978, have ;
been added to the list approved >
for purchase by the Fund.
>
St.
Louis
NYSEtWmfcers'
which
work
lies
ahead
without
.with .the. taxes ,now
suggested,
■
t
\
j
.
»
i
„•
V
V
■>
ifbT
t
V J
!-
T
i
Will;-:;
Jo 6wa Sargainingi:
The New York-Stock
Exchange "
recoenize collective bargain- '<
ing in labor relations for1 the first -
will
time in its history, as a result of
election held by the Exchange's
an
Independent Employees' Associa¬
auspices of the Na¬
tion under the
tional Labor.Relations Board. The:
Employees'
election
r
to
Association
represent
won
floor
the
;
em-'
ployees as collective bargaining
agent by a vote of 367," with five
votes cast for no union organiza- '
lion.. The Association is affiliated :
With neither American Federation
of ;Labdr nor
dustrial
>
1
»•
:
the Congress of In-?
Organization.
1
• k. - ■ 'tr ■
<
i i» t
-
Board,
has the prodigious
1| 19429,603,928.60
The
,
•v
Production
The •' War-
:
which
their
stone of low money
Sept,
'
fer.
course, are
masters
in the hands
now
There are just not
enough of these critical materials;
Necessarily, some needs must suf¬
not wholly
earnings.
They.are between the upper mill¬
Banks, of
the
are
•
as
*
-
"-'J- 'I":
i1
Manhattan
.
these
.ships against submarines.
building plants for the manu¬
facture of synthetic rubber to take
news
as
knowledge and foresight."
tic program
tory. ;
any like expansion of facilities.
the prospective added
This confidence is flattering to the
volume of government holdings
interest.
Government
securities
should yield, enough income for railroads and to my office and I
are the safest
assets a bank can
most banks to retain, something- sincerely
hope - it is
justified.
acquire, and the only risk at¬
close to their recent rates of earn¬
tached to them is that they are
Certainly, we shall all do every¬
ings, enough to show some small
subject to fluctuations. These are
increase in capital funds against thing in our power to justify it
bound
to be
and I know that there is much
only moderate in ka large increase in
government
character, however, during the ^holdings. It is not a very pleas¬ that can be done.
meet all the needs of the
,
ported were spread over 65 sep¬
arate/issues/of commons,
pre-*
ferreds and
of the infla¬
core
The banker as cit¬
izen: shares
responsibility
with
others in these areas, but they are
problem.
.
reserve
ments, will enable
$2,343 per $1,000 of investment. -;
The on—balance purchases re¬
amount and character of taxation
the
earnings prospects have not
been
investors,
called upon to
but
The problem is complicated by
;
the
to
are
It is true that the cap¬
reduced.
are
as
holdings
risk to be covered is much less, v
composed of sound loans, Govern¬
ment
•
is very
A
for
That is
about
situation
banker
i
ital need
during
present period readjust their Gov¬
ernment
holdings to obtain the
head
run
flation controls.
Effects Of The War
;banks, particularly those operat-
banker.
the
er wages, shorter hours, more rec¬
ognition, when farmers have been
gaining ( some control over toolong depressed farm prices. These
constantly
and/are
before,
them
i
of
surge,
fought political struggle for high¬
in moder¬
FHA mortgages
,
amounts,- properly serviced,
satisfactory; investments for
ate
,
one
the realm
inflationary
ample,. comes when wage earners
have just been winning" a hard-
hand, strengthens
that we may rightfully expect to
the mortgage and, on the other,
take place, once law and order
reduces purchasing power, - ;thus
counteracting the forces of infla¬ prevail in the world. V
the
ure, on
cos¬
so
a
-
r
ever
to
are
broad stream of move¬
ment both political and economic,
that we seem almost helpless be-;
fore them.
Much of it is largely
mic, such
The assets of the banks are
already
sounder
than
perhaps
omy.
The inflation forces
r.
pre¬
a
and
Such
amortization.
the
1
,
asset being improved,; This will enable
satisfactory bank
a
.
The war will bring in its wake
requisite to
A
V
of mortgages as well as
amounts
is
be
considerable
hold
Banks
serve
ij; The shorter maturities can be
assets, bonds as
gradually
sale " of
such
well as real es¬
deposits.
tion not merely to meet any emer¬
/•■
The
;
-
12 years.
liquidated.,'
be
portfolio.;; It would, however, be
inadvisable to liquidate them en¬
,
Over
should
never
Furthermore, - thus far the larly those which have-; time, de¬
Treasury has offered to the .banks posits, may add a well selected
medium-term obligations and has list of mortgages properly amor¬
tized and FHA mortgages.
An
relied
on
insurance
companies
fend savings banks to absorb the institution which adopts its policy
obligations with a maturity- of along these lines will be in a posi¬
ties. ;
and those' assets
return
vestments
in
12 years
to
one
statement does not
stitutions
Government securities orderly.
question:/'In what position should
ranging from three- my institution be when the war is
from
return
a
their
toward keeping
directed
part
.
diversify
to
,
high
a
considered unsuitable for bank in¬
invested
the
increase
to
position of the buyer from $1,489
per
$1,000
of
investment
to
such.
is
The
a
to
must
banker
(Continued from page 1071) "
potential leverage' (reserve buy-*
ing power) of the Fund now held
in Government bonds and cash is'
well.
as
risk
be
bank
a
its
of
amount
of
face his hazard
investment
sound
able to meet the withdrawal
certain
hazards
composition
liabilities of each
of the assets and
investment Trusts
and calls for careful management..
The
(Continued,from page 1079)
banks, and almost 36% in the
case of country banks.,
Since in¬
terest is being paid on time de¬
posits and the rate as a rule is
higher in the reserve and country
ber
considerable period
a
V
•
Thursday, September 24, 1942
& FINANCIAL CHRONICLE
THE COMMERCIAL
1084
<
-
:<)
rif ,'f
:
iu
.i/Jr.i
,
.Volume 156
Number 4110
.
THE COMMERCIAL & FINANCIAL
CHRONICLE
VIRGINIA
Wire Bids
FLORIDA
FLORIDA
city.
CAROLINA
*
•
'i»*
i
'
i
*
.-ik
ii*
t
'
'
i
•
'
■
''
.
v
*
t
k
.
1
...
\
.
»„-*»•.'
..
•
'
*
Our
da
7
MUNICIPAL BONDS
♦
'
-j.*
■.').«
•*
.!>.*
•
lf
F. W.
'
Ion# experience In handling Flori¬
issue*
to
—
answer
them
Corporation Bonds .7:77
gives
us
pass a revenue bond
comprehensive
a
at
Inquiry
any
for general
regarding
Canada's Third
obligation.
no
■
-
■
.
,
CRAIGIE&CO.
System Teletype:
RH 83
'
'
»AtfftSt»C\
1ST NM
F. B. ASlfPLANT & Co.
Two Wall Street
•
'
v
:2
•;
i
r
Oct. 19
Canada's Third
on
Vifctory
l^t' Fri¬
sured
Hector 2-
period
rate."
at
•"
fixed
a
'
■
'NEW-YORK
Of
the
hands
•
•
•
Bell System
-
Teletype—NY 1-69
of
an
session
to
bonds
in
/
the
of
4.227 to
reduced
was
3.085%.
226,328,
rates
•7
Municipal
submit
to
rule
the
not likely to
men are
any
tax status of the
alternative
proposals
propounded by .the
authority and similar public
the-counter
customers
dealers to
the
best
disclbse to
and
transaction, according to
eral opinion.
TWhile
quotation
municipal
the
legality, municipal
opinion
that the
•
would tax future State and
men are
is
of
of the
/the
imprac¬
They maintain that the field
in which to endeavor to obtain the
check, they say, through hundreds
of dealers in various cities
might
and
reveal
best
the
asked quotations.
-
involved
expense
complying
with
the
rule
the
small
now
;
that
many
forced out
with
the
dealers
of
in
operations of
Such
a
dealer,
a
check
it
dealer.
houses
quest for the best quotations
specific
neglect
bond,
v
to
but
contact
-
firms-
more
closely identified with markets
that
security.
N. Y. Port
that
on
in
Authority Tax
Status Awaits Action
S. Treas¬
ury
Department to determine the
he
the
tax
status
in the next month
two.
or
fore the lower court in New York
City later this year, it is felt that
decision
not
may
be
reached for
some time, as the mat¬
undoubtedly be carried to
the Supreme Court.
ter will
This case,,, originated in March,
1941, when the Treasury Depart¬
ment sent deficiency tax notices to
seven
bondholders of the
authority
who did not include interest from
the
bonds
filed March
in
a
their
15, 1938.
stated that the
as
ler's
topic will
Economic
be
"The
Present
Situation and the
look for Interest Rates."
Interest Exempt from Present Federal Income Taxes
.
of Massachusetts Taxes
Metropolitan District
7-'7/7^7f ;/;i 7;7'7.77 Due serially October 15, 1943
Legal Investment, in
p/. /^
to 1967, inclusive
//7/Jp7;'7
our
opinion, for Savings Banks in New York
and Massachusetts
These Bonds, to be issued to
provide funds for the
the
on
000 bonds of the Boston Elevated
77
•7
of
ment of which its full faith and credit
7,7:;7 District, of which
saved
|
p
,
"
cities
neither the rate
nor
are
,
Massachusetts.
All amounts received
District for the pay-
pledged; and taxes
amount is limited by
;;ad valorem basis and levied through the Treasurer
•
of
on
law,
the
behalf of the
to be
are
on an
Commonwealth
by the District from interest
upon
of
the bonds
of the
Boston Elevated
Railway Company purchased by the District are to be
applied to the payment of principal and interest of these bonds and bonds here
$18,000,-
which
purchase by the District of $8,286,Railway Company, in the opinion of counsel
will constitute valid, direct and
general obligations of the
re-!
Novem-1
question
charges on the
debt by
refunding
for
/
§§ mil 2 II i%%pohdsS||||llllill
;
confident,
was
7-7
¬
tofore issued under Chapter 567 of the Massachusetts Acts
of 1941.
Prices
to
yield 0.50%
sold
pal
Finance
Officers
Association
yip./
test .action
tax
It
move was
on
returns
was
then
intended
the part of the
Treasury, to. determine the income
These
bonds
rate
offered when,
are
and
maturities
of
by
the
legality by
p7ipV,17/•.-' 7■'.':,'p
as
and if issued and received
Massachusetts
Messrs.
whose
to 1.70%
7
and subject to the approval of interest
Department of Public Utilities and to the approval
Ropes, Gray,
opinion
ivill
by
be
Best,
us
Coolidge
furnished
&
upon
Rugg, Boston,
delivery.-
Mass.,
■
7p/77/■
p
777p>//7:
reports.
Now these cities
can-
as
—
did
indirect, influence on the general Philadelphia—call in bonds
pay¬
standing of municipal securities. ing 4 and 5% interest and refund
While the litigation will come be¬ —or
re-issue—them at the
final
luncheon meeting of the
tomorrow, Sept. 25. Dr. Nad-
of
The ruling in this case is under¬
stood to have an important, albeit
a
first
Fall
Railway
At the general election in No¬
of7
special vember, the voters of San Fran¬
saving indicates economies
-
Marcus
Nadler, professor
banking and finance at New
York University, will address The
Municipal Forum of New York at
its
Francisco/Seeks
MASSACHUSETTS
; i
obligations of the bonds with the "call" feature sev¬
Port of New York Authority is eral
years
ago
at high interest
expected to be ready for court rates then
prevailing, the Munici¬
action
San
Dr.
of
//>■
$83,398,200 of callable municipal
bonds.
77,7 7 7/ //'/ 7 77,77':.,: t'j.
The
State's
the
interest
bonded
possible
/
Government," J
Philadelphia has
000
7
-
fosters
$18,000,000
Interesting by Refunding
city's
Meeting Friday
Sinking Fund
;7vp
Market Street
New
Phila. Saves
-
Test action of the U.
of
a
deliberately
-
of
present
low interest rates of 2 to
2.15%.
In
June, 1941, holders of Phila¬
delphia bonds from 30 different
.
issues—callable from 1942 to 1947
—were
ones, to be retired
1943 to 1950.
annually from
<
the
first
call
dates
of
the
old
to
bonds, and a lower rate—214
31/4%—thereafter. Thus bond¬
holders
BLAIR &CO.
INC.
B. J. VAN INGEN & CO. INC.
COFFIN &, BURR
:
KEAN, TAYLOR & CO.
p. INCORPORATED
•
INCORPORATED
OTIS &. CO.
would
■
HORNBLOWER & WEEKS
TUCKER, ANTHONY & CO.
(INCORPORATED)
NEWBURGER, LOEB & CO.
EDWARD LOWBER STOKES & CO.
Chicago
■
ARTHUR PERRY &, CO.
INCORPORATED
SCHOELLKOPF, HUTTON & POMEROY, INC.
ALFRED O'GARA & CO.
7,
i
/ /
GEO. B. GIBBONS & CO.
PHELPS, FENN&CO.
BACON, STEVENSON & CO.
H. C. WAINWRIGHT & CO.
■'
■
.
The new bonds were to bear
the
old rates of interest—4
to 4%%—
to
LEHMAN BROTHERS
offered
opportunity on a
"first come, first served"
basis to
exchange their bonds for new
up
HALSEY, STUART &, CO. Inc.
DICK &, MERLE-SMITH
have
the
full
equivalent of -the-old bonds-until
WILLIAMR.COMPTON &CO.
INCORPORATED
Dated October 15,
MULLANEY, ROSS&.COMPANY
Chicago
1942.
DANIEL F.RICE AND COMPANY
,
Chicago
Principal and semi-annual interest, April 15 and October 15, payable in New York
and Boston.
Coupon bonds in denominations of $1,000, registerable as to
principal only.
The information
contained herein has been
carefully compiled from sources considered reliable, and while not guaranteed
as to
completeness or accuracy, we believe it to be correct as of this date.
September 24, 1942. '
.
V
7
Municipal Forum
unobligated surplus
in the general fund amounts to
$18,639,880.
7
7 7/;';7-:
Boston
called
a
State
vision be placed
ber 3 ballot.
in
on
people
Constitution
Edison' said
lature
-
p/;pl77:: $8,286,000.777777//
that / the
hearing
committee i
would recommend to the
Legis¬
asserted,
was
j
could
sponsible
indebtedness
.
wasteful, complicated and irre-;
be
total
K).:y7y:r'i'V; / r. Of
/
long line of
"testify from
personal experience that our 98year-old
a
7.77;7v'-c Exempt from Commonwealth
|
Edison
revision
a
Declaring that
•
dishonest
several
the
desire
Governors
dren payments.
makes
State
a
constitutional
Revenue Fund for old age assist¬
ance and
aid to dependent chil¬
The
a
State's 98-year-old Constitution.
The point also,is made that the
rule would not work to eliminate
could,
whether
Jersey
result
might
/*
showdown vote at
the general election in November
nar¬
business.
and
call for
V
Charter
Governor Charles
margin of profit
obtained,
a
!
•
.
last week for
also
would be large and further
row
House leaders
ficials, issued
now
proposed
$29,000,000
annually, or $58,000,000 for the
biennium, out of the State General
bill currently pend¬
revenue
Vote On New
on
* -"
-
.
bid
,7p It is. contended that the book¬
keeping
and
N. J. Governor Asks
independent bid and asked
prices was practically limitless. A
to
•
general fund is
a
amendment to set aside
mu¬
ing.
best
fail
be
Such moves thus
far have been unsuccessful and
no such clause is looked
for in
tical.
well
could
nicipal issues;
question
rule
matter
pay¬
in the hands of the
.
entire
At the general election on Nov.
3 the voters of Missouri will
pass
on
7:'77777;v
indebtedness
Commission.
would
dropped by the Treasury should ;
it succeed in its
attempt to have \
Congress enact legislation which
Dealers, Inc.
aside
:
debt.
State's
$18,159,000.
However,-against
these obligations there is a
large,
but officially undisclosed balance
payment
The
tions, it is definitely expected that
proposals will be offered by cor¬
porate
dealers,
presumably
through the National Association
Leaving
7
>
State
.
the total
*
Plan Up For Vote
of
$18,082,424, since
funds.
,
Missouri Old Age Pension
This
old
$7,906,200 of the refunding bonds
were
held in municipal
sinking
upheld by the Supreme
ask Congress to
scribed.
; In
addition
bonds
outstanding payable from high¬
way funds amount to $3,428,000.
city . would have paid
$75,829,814 interest during the
same
period.
The actual saving
exempt
not expected to offer any
sugges¬
?
it
abate
gen¬
men
of Securities
were
the
exceed
$14,731,000.
Va. Special Session On
'||:7-i
of back taxes, to
Debt Liquidation
7
;
;
outstanding ~ issues from
-Governor Colgate W.
'; taxation and to begin taxation of
Darden,
future issues. \
'
•'
V;.
Jr., after a conference with Senate
are
before
''
the
tion
the
details of
and funds in the
Sinking Fund Com¬
now
able from the
$56,-
;
as
Court
under
no
far
The
the
in intrest cost is
announced
next
the treasury
of
time the Treasury was
saying that if its posi-
that
quoted
independent
bid
asked
At
over-
each
cor a
porations.
Securities and Exchange Commis¬
sion; which would require
obligations of the
whereas
General
noon
mission
•/
bonds will total
new
at
hands of the
from?
mature, the interest
the
the
/The Governor, gave
of
From the time the reduced in^
terest rates become effective until
the new bonds
on
of
convene
plan in his brief public state¬
ment last week, but the unobli¬
gated surplus in the general fund
the
interest
Finance 7 Minister
by
his,
public, 62.65%
were exchanged
by the deadline
for refunding, which was June'
15, 1942, and the average rate |
j
day
as¬
77,/,' 7,,*777
eligible
was
Ilsley.
Assembly The Second
Victory Loan, sold
Tuesday, last
February, was for $600,000,000,
Sept. 29, to consider a plan to
but over
interest
$950,000,000 was sub¬
liquidate the State debt.
have tax-exempt bonds for
'
I
-
.
Loan, it
they were subject to redemption
by the city," and thereafter would
y
.
With an objective of
$750,000,000, subscriptions will be opened
CMtCACO IUINOIS
/
Telephone 3-9137
•
.v
RE Crummer L Company
84
&
•
k
Victory Loan
/#%\.
RICHMOND, VIRGINIA
Bell
;
issue, whereas
two-thirds majority is
required
obligation bonds?" ' \
a
background of familiarity with these
municipal bonds.
We will
be
glad
:
1
■
The bonds would be retired
from future
earnings of the rail¬
way.
A simple majority vote can
y
Government, Municipal and
"V
the proceeds of which
would be
used to finance the
purchase of the
Market
Street Railway in that
MUNICIPAL BONDS
.■> NORTH and SOUTH
'
..
cisco, Calif, will pass on a proposal
to issue
$7,950,000 revenue bonds,
on
VIRGINIA-—WEST VIRGINIA
^p/CANADIAN/p
1085
Out¬
...
7
■
ItfrftlXtt? ita^wiw
UftStffcMM
THE COMMERCIAL & FINANCIAL CHRONICLE
1086
it.1
Thursday, September 24; 1942
Calendar ol New Security Flotations;
R.
OFFERINGS
Dickson
S.
Merrill
&
York, and
& Beane,
Inc., New
Co.,
Pierce,
Lynch,
Fenner
New
York.
The amounts which the un¬
CORPORATION
derwriters will subscribe will/be furnished
Burlington Mills Corporation has filed a
registration statement with the SEC cov¬ by amendment
Offering—The offering price of the $2.50
ering
50,000 shares of cumulative con-,
series preferred stock will be supplied by
vertible preferred stock, $2.50 series, with¬
amendment.
The 113,637 shares of com¬
out flar'value; stated value, $50 per share,
mon stock are reserved for conversion pur¬
and'113,637 shares of common stock, $1
poses
■
par value, including scrip certificates for
Proceeds—The net proceeds from sale of
fractions of shares
Address — 301
North
Eugene
Street, the preferred stock .will be added to the
general working funds of the company
Greensboro, N. C.
Registration Statement No. 2-5043. Form
Business — Corporation and subsidiaries
are
engaged
in
manufacturing
woven A-2 (9-15-42)
Corporation on Sept. 22 filed an amend¬
fabrics from rayon yarns and rayon mix¬
ment
to
its registration
statement fixing
tures,
and to some extend from cotton
the price at which the preferred stock is
yarns, and in manufacturing to some ex¬
convertible into the common stock at $21
tent full fashioned hosiery;
throwing and
per share of common stock.
The redemp¬
dyeing rayon, cotton, and silk yarns; dyeing and finishing cloth and knitted fabrics, tion price was also fixed at $53.25 per
share if redeemed at or prior to Sept. 1,
and selling the manufactured goods ?
Underwriting—Principal underwriters are 1946 and at $52.25 per share if redeemed
at any time thereafter, plus accrued divi¬
Lehman Brothers; New York; Werthfeim &
Chase Bank Celebrates
BURLINGTON MILLS
G. Becker & Co., Inc.,
Securities Corporation,
Hallgarten & Co., New York;
New York; A.
York; Union
Co.,
New
York;
New
in
dends
each
Lehman
stock
*
-
the
•('
Anniversary
$3,595,451,030
June
on
list of issues whose registration state¬
These issues
a
filed less than twenty days ago.
grouped according to the dates
are
tion statements will in normal
which the registra¬
on
become effective, that
course
in the case of the secur¬
foreign public authorities which normally
is twenty days after filing except
ities of certain
become effective in
Government
States
when
obligations
first statement
the
is¬
was
sued amounted to $125,000,
where¬
the latest published total was
as
P.M. Eastern Standard Time
Offerings will rarely be made before the day follow-
trust
SUNDAY, SEPT. 27
CLUB
UNIVERSITY
30,
Sept.
deben¬
2105
Address—76 East Monroe
Street, Chicago,
111.
Business—The
its
club
in
organization
continue
operated
has
and
1887
since
to
intends
operate as an organization for
to
educational, social and fraternal purposes.
capital stock and is not operated
for pecuniary profit but is operated solely
It has no
benefit of
for the
its members
Offering—At the time of construction of
operated by the
club there was organized under the laws
the
of
State
of
known
tion
tion
funds
the
club
obtained
so
the
corpora¬
members
by
the
used
construction
o£
The club now proposes
debentures—being
4%
its
that
association
for
club building.
offer
to
of
subscribed
the
and
a
shares
The
largely
were
the
of
the
as
Association.
stock corpora¬
University Auxiliary
Illinois,
the
se¬
registered hereby—in exchange for
curities
outstanding shares of the association,
other than shares of the association owned
the
by the club,
and upon acquisition of such
shares, or such proportion thereof as shall
be
approved
th,e
club,
dissolved
to
the
cause
and
of
directors of
association
of the
is
of the club in such
"reorganization" within
a
for
of
amount
principal
debentures for
each
will
When the Chase National Bank
organized
was
in
John
1877,
well
was
The
known.
in
interest
financial
for
record
the
principal
owned by Mr. Thompson
Samuel
son,
C.
three
was
and his
who
Thompson,
became its first President.
were
Our
will
principal and premium in
105% on Oct.. 1, 1942,
of $1,494,000 face amount of first mort¬
gage, 4%
series, due 1960, of Cumberland
Power, $1,538,060; to pay principal and
premium in the redemption at 105V*% on
used
date
a
to
pay
at
redemption
1942 to be
in
bonds,
Cumberland
mortgage
1966
of
to pay bank loans
$9,784,348 and
by the company which were incurred
made
the
for
due
series,
County
first
amount
face
000
3%%
announced of $9,275,-
purchase
facilities
construction
and
of
$2,650,000.
proceeds of the serial notes and the
common
stock will be
used to pay par
and premium in the redemption on a date
to be fixed in 1942 of an unspecifed num¬
of
shares
of
ber
preferred stock and
of shares of 5Mj%
of Cumberland
stock
preferred
6%
number
unspecified
an
County at
of which
and 110%, respectively, all
shares
to
are
be
called
County
for redemption
prior
by
proposed
to the
and converted under the agreement
obligation of the com¬
pany to deposit the redemption price there¬
of in trust for the holders of such shares.
The amount to be utilized in such redemp¬
of
into
merger
will
tion
be
an
supplied by amendment.
proceeds from the sale of
stock will be used
Additional net
serial notes and common
acquire 300 shares of the common stock
$6,000 face amount of 5% debentures
to
and
1, 1936, due Aug. 1, 1956, of Nepsco
Services. Inc., and 10 shares of common of
the club
,
Registration Statement No. 2-5042. Form
$9,100 and
of the 650 outstanding shares
capital stock of New England
Pole & Treating Co. $110,000.
Balance of net proceeds of the series M
bonds, the serial notes and common stock
will be used to redeem at $120 per share
or
otherwise retire on or before Oct. 1,
1942, an unspecified number of shares of
7%
preferred stock of the company and
for
the
purchase
and
construction of
facilities for the carrying out of the com¬
pany's business..
'
Registration Statement No. 2-5024. Form
other
E-l
(9-8-42)
OF OFFERING
UNDETERMINED
We
a list of lssnei
statements were filed
ago,
but whoae
have not been deter¬
below
present
whose registration
days
offering
mined
or
dates
or
Nepsco Appliance Finance Corp.
to acquire all
of the no par
DATES
twenty
of Aug.
more
unknown
are
to
us.
(6-29-42)
A-2.
CENTRAL MAINE
Central
Maine
tration statement
and
first
general
maturing July
M,
POWER CO.
Power
Co.
filed
regis¬
with SEC for $14,500,000
mortgage
1,
bonds,
Series
1972; $5,000,000 ten-
serial notes, maturing serially on July
1 from 1943 to 1952, and 261,910 shares of
common stock, par value $10 per share.
Address—9 Green Street, Augusta, Maine
year
Business—Company is an operating pub¬
lic utility
and engages in the electric, gas
business, entirely within the
filed
State
of
withdraw
request with the SEC to
of decision to
10July
amendment
proposed issue of $5,000,000
serial notes at private sale.
On
the
sell
year
company
filed an
SEC to
withdraw the
1942,
16,
proposed
notes
from
registration and such with¬
drawal was approved Aug. 19, 1942
Amendment filed Sept. 10, 1942 to defer
the
with
effective date
EASTERN
Maine
Underwriting—The bonds and the notes
■will be sold under the competitive bidding
rule of the Commission.
Names of under¬
writers and amounts and offering price to
public will be supplied by amendment
Offering—Public offering price of the
bonds and notes will be supplied by amend¬
ment.
The 261,910 shares of common are
first to be offered to the holders of the
company's outstanding
common
stock and
at $10
preferred stock for subscription
share in accordance with their pre¬
emptive rights.
New England Public Ser¬
vice Co. has subscribed for and agreed to
take the 261,910 shares, less any shares
as may be subscribed for by stockholders,
and to pay therefor in cash at $10 per
share provided the proposed merger be¬
comes
Proceeds—Statement
issue
of
the
says
that prior
to
securities now registered,
Cumberland -County 'Power ■ & * Light- Co .*,* *
public
utility
incorporated
in
Maine
in
WHOLESALE,
Cooperative Wholesale, Inc., filed
a registration statement with the SEC for
$150,000 4%
registered debenture bond*
maturing July 1 of each year from 1944
to 1956, inclusive (exclusive of 1950). Com¬
states
that $50,000 in
maximum
principal amount which shall mature in
1944
and $30,000
is maximum principal
amount which shall mature in any one of
pany
the
Kent
Ave,,
Business—Wholesale
allied
related
products,
activities,
Brooklyn, N. Y.
in groceries
dealer
including,
among
warehousing
and
other
pack-
aging
Underwriting-—No underwriter named
other
92,000
There
original stock¬
Fur-
shareholders.
incident to
them facts
development
the
bank's
available
made
are
follows;
as
the
holders
securities are being sold
Cooperative directly to its stock¬
and
friends
interested
in
the
cooperative movement without the interp-ofilI6ft iraM/OKd^rft'eY/dealfef; 'bfoket'
salesman, at 100. No commission will
or
ters
117
at
business
Broadway, but
months later the bank
on
notes at below par
Here they
>/
the
to
first
is not
a
of
floor
at the
accounts written
A
the
of
of
Board
Donald
Directors
Campbell is Pres¬
view
Ih
bank.
time,
one
quaint figure to those who
door,
a
not familiar
and
of
manners
earlier genera¬
an
ings
were
of
the
days
"dickey."
three
At
regularly each afternoon
started. Tor home, taking the
Madison
Avenue
stage
v/hich
principal methods
transportation uptown in that
one
,
.
.
.
.
.■
A/y
V':.' /
,
.
7
'V
interest rates in the short-term market
appears to be over.
.
That's the first important point. . . j. y,
And the fact is that purchasers of high-coupon bonds, tax;exempt or taxable, must look forward to heavy amortization pro¬
grams and possibly other tax factors nullifying the advantage these
have
discount bonds.
over
It's
'
tunities
...
good idea to get
a
discount—on
a
.
.
all
notes
the
most
now
discount,
a
for
attractive,
.
,
.
.
.
.
at
discount bond—that you bought at V
and then.
The oppor¬
a
books
your
happen rarely.
they
bear
of
Is
the
the
March
highest
I
1946,,
*
15,
and *
coupon
''77
'
Also, if you're interested in the note market generally, you
might consider building up your position in the new l%s while
they're still right around the par level.
A
.
Premium at the
sell
almost
full
a
point below
par.
.
.
.
.
.
moment is only
get up
a
bit.
2/32.
.
.
It won't be much more, but it should
.
,
Maybe to 4 or 6/32 or around there. '
.
.
.
'.
.
THE TAX ANTICIPATIONS
Secretary Morgenthau's tax-savings system is the most generous
Treasury in the world. ;>/'V .
No other nation, as a matter
of any
pares
was
o'clock
.he
.
But the upward swing in
collar
The
1850.
a
.
■■:
.
of
type known in Civil War
as
.
.
maturity date.:v.
but of the
immaculate
of
the
displayed,
freely
was
/
,
.
Home-knitted woolen stock¬
fashion
:<d
with the dress
tion.
linen
of
,
v;
J :'A
But notes.
A . i.
purchase of some of these
at this time.
.
..
•
•
.
.
appear
might see the venerable John
Thompson at his desk near the
move
.
high-
the
wise
are:
The
Of
three-story building at
104 Broadway.
Here, according to
•
v
At around 9912. , ,
%s, due Dec. 15, 1945. 7
At around 98%.
...
' •
J The Is, due March 15, 1946.
At around 99V8. . .
.
'
f
The CCC l%s, due Feb. 15, 1945. . .
At around 99%. J . j.
Admittedly, all these notes are taxable.
.
Admittedly, any
purchaser of them must look forward to paying a capital gains tax
i
moved
was
' J
1
wartime
/'■'> The %s, due Sept. 15, 1944.
few
a
stooped,
of the
fact, offers a combination savings-interest plan that even com¬
with ours.
The new Series A notes, at 1.92% interest
a three-year maturity, of course, are for smaller taxpayers.
.
Purchases limited to $5,000 in <any one year.
.
.
.
"The new
Series C notes, at 1.07%
for a three-year maturity are for big
investors, institutions and individuals, v . . And they're so much
more attractive than the last series of tax-savings notes, that again,
.
.
.
for.
comparisons
are
unproductive.
;
'
.
.
.
•
Incidentally, the boost in interest available on the tax savings
.era.'..', 7;''\7vV7 A\7:A^^
H:;y notes for big taxpayers reflects the tightening which, has occurred
When
the
Chase1 Bank
wel¬ since January in the short-term market..
.
On first series,
comed its first depositors, there called "Bs," the interest was 0.48%.
.
On this one, the "Cs,"
of
.
clerks
four
were
on
staff to
the
the interest is 1.07%.
.'-A
;
.
V-:V-'
■'
good buy, should bring out the huge amounts of
than 6,000 men and women are cash corporations are earmarking for tax payments in 1943.
employed in the Chase organiza¬ Recommended highly on an investment as well as tax savings
;
Notes are eligible for collateral behind a loan.
.
A .
tion.
During the war period up¬ basis.
ward of 700 men from the bank's If turned in for taxes by any holder except a bank that accepts
staff
have
entered
the
armed demand deposits, the owner gets purchase price plus interest.
.
; .
These are good.
Offer is generous.
...
Sales?
services of the United States and
Well, on. Series A notes, Treasury did badly in first nine
their
places
have
been
filled
months of plan.
Sold $82,000,000, received back $17,000,principally by women.
000 in taxes, still has $65,000,000 outstanding.
Chances
Other
facts
which
the
anni¬
are sales will go way up, may double if enough little taxpayers '
versary of the Chase Bank brings
are educated to the virtues of the notes plus the idea of saving)
to attention, one of which relates
for taxes.
' •
'
to the passage
of the National'
On Series C notes, response should be tremendous.
Banking Act, are indicated as fol¬
handle the business.
Today,
Notes
V;:
more
are
,
a
.
.
,
.
.
.
.
.
.
lows:
For
years
many
Civil War and for
a
prior to the
period there¬
after, John Thompson published
Thompson's Bank Note Reporter,
which
was
principal
a
information
of
source
the value
on
of
ing Act in 1863, it will be remem¬
bered, State banks issued notes,
the v value
and
of
those
notes
varied according to the soundness
individual
the
of
it
made
fact
This
banks.
necessary
for
the
public to protect itself, so far as
possible, by keeping constantly
informed of current quotations on
various
the
As
notes.
Secretary
Salmon
of
Chase
P.
y
paid
to
anyone
in
long
a
conjunction
1
loans and also to reduce certain
accounts payable now outstanding for cur¬
rent merchandise, the balance to be used
private
working
capital
(5-27-42)
Registration
on
Aug.
Statement
1. 1942
as
effective
list
is
1 p.m.,
of 5:30 p.m. EWT
juiy' isr 1942v::r *"•** ^ ~
(This
Maybe $1,000,000,000 will be sold in next 30 days alone.
INSIDE THE MARKET
.
<
\
- - * - - tr.
incomplete this
.
.
.
r
:
.
;
,
/
week)
V;
Stability of prices in face of all
Market dull .as usual.
news,
derful
all financing jobs/all developments is still something won¬
to behold.
Except that there's not much profit in
...
trading—or
even
these days.
.
.
in keeping the wires open for investment orders-=And dealers feel this deeply.
.
.
.
'J
.
expenditures totaled $5,182,000,000, as compared
$4,794,000,000 in July, rise of 333.3% over that month a year
ago.;
;.
: TV.-. •
/;• '
1
' •.
'
7
' 7
Reserve Board will cut requirements of New York and Chicago
August
war
with
.
.
banks
by another 2%
soon,
ending spread between requirements of
these banks and other banks in similar reserve classification.
It's coming.
.
-
.
,
hanks
Chicago
a
.
.
.
.
/
As Board cut requirements of New York and
t
bulletin carried story
,
few days
ago,
Reserve
saying Treasury would borrow $4,000,000,000 a month during rest:
of fiscal year.
Figure that out in terms of bank reserves
.
.
.
what's the trend in requirements.
...
,
Still much talk around about what bond maturity and coupon
and you'll know
will
be
Treasury's choice
the
next
month.
.
Some-feeling
.
.
bond, talked of by a few informed sources, won't be
tried because issue would hurt outstanding 2s,
>7
And the
that
2V4%
a
.
.
Treasury has been trying for months to get the 2s to stand on their
own.
Federal Reserve Open Market Committee reported
.
Registration Statement No. 2-5002. Form
EWT
$1,186,000,000, leaving $3,675,0p0,000 outstanding. .
.
Guess is in next few months twice as many Cs will be sold.
with
ssls
Proceeds—Will be used to repay .certain
3-2.
.
of
Next will be general cut in requirements for country.
light to secure passage of the Na-^
tional Banking Act which, with
such
.
Victory Loan Committees, various bond selling agencies are going
to'*get behind them.
Response in first nine months to Bs
indicated total sales of $4,861,000,000, tax payments in form of botes
;
the Treasury,
won
.
.
.
cur¬
rency
issued
by
State
banks
throughout the country.
Prior to
the passage of the National Bank¬
for
Offering—The
/
(Continued from First Page)
now
be
other years
Address—135
by
effective
COOPERATIVE
INC.
Eastern
per
the
a
trust indenture data in view
water
and
6%
Aug. 5, 1942,
Central Maine Power Co. on
a
ident
building at
the
of
man
and H.
considered keynoters of the market.
And the question arises as to whether
holders, whereas today the stock
the bank is owned by more
was
Net
•//
■■
/
Reporter On "Governments"
}■
at
as
1 • •
•
■
Statek,
Caribbean
the
Winthrop W. Aldrich is Chair¬
are
sagacity
bank
new
were
used
be
$100 par value,
than shares of the Association owned
Bhare of the Association of
by
merger
proceeds of the series M bonds
Net
be
to
proposes
exchange
•'
merger
offer its 4% debentures
shares of the University
Auxiliary Association on the basis of $100
club
the
commission
the
follows:
the financing in ac¬
plan recently
from
with
Cumberland
exchange of securities by the issuer thereof
securities
of
another
issuer."
The
V>:
proceeds
with
ex¬
for
In
Net
cordance
filed
'
"
the
purview of the definition of that term set
forth in paragraph 5 (1) of the rules as to
the use of Form E-l as constituting "the
an
ceased
130%
that the issuance
debentures
change
be
to
liquidated.
considered
It is
4%
the board
by
acquire,
thereupon
agreement of merger, the
business and all the rights, powers, etc., of
Cumberland.
After
the
merger
has be¬
come
effective, the business of the com¬
pany will include also the business, fran¬
chises and properties of Cumberland, the
separate
existence
of
which
will have
the
the club building presently
will
Maine
pursuant to
4%
amount.of
principal
due
tures
CHICAGO
OF
Club of Chicago has filed a
statement with the SEC for
University
registration
$802,500
Central
bank's
in
conditions,
no
special
recognition of the anniversary is
(
I
Equitable Trust Building planned at the bank.
were
Sept. 20, 1877, the Chase National
Bank occupied temporary quar¬
will be merged into the company and
area.
Streets, with the
department housed in the
former
Similarly,
loans
$652,516 in
1877 compared with $822,753,458
in mid-year of 1942.
discounts
and
When it opened for
1909,
in the
City
them
of
most
Pine and Nassau
than
dates, unless otherwise specified, are as of 4:30
as per rule 930(b).
These
located
32 branches
and
nine
are
York
New
branches outside the United
Natu¬
by State banks.
Street, also owned
There
$1,573,405,156.
of
days.
seven
in
The head office of the Chase is
1942.
30,
The bank's investments in United
his
Following is
by Chase.
supplementary
legislation
a few years later, finally
brougt an end to the issuance of
currency
Thompson was 75 years old, and
ments were
at 11-15 Broad
passed
rally, Secretary Chase was greatly
admired by Mr. Thompson, who
(Continued from first page)
Dec. 27, 1877, showed deposits of long had been an advocate of a
••
$615,686,
which
compare
with unified currency system. 7
.
and associates offered
public on Sept. 24.
the
to
case
Bros,
65th
some
,.
.
against a 214% bond at this point..
As of today,
.
.
..
-
'
!
-
:
there are $6,204,000,000 certificates of indebtedness
outstanding and $8,189,000,000 notes outstanding. ■
Short-term stuff-te -keep- market in good liquid sha^e/ 7
^IjCnoygh
'
.V
Volume 156
Number 4110
THE COMMERCIAL
& FINANCIAL CHRONICLE
I omorrow's
Markets
through
tween
Walter
Whyte
iays-——
PLAYS
'y '
.*
"
'
■
' • • *
'(
"Show Time," a vaudeville show, presented
by Fred F. Finklehoffe at the Broadhurst
Theatre, N. Y., with George Jessel, Jack
Haley, Ella Logan, the DeMarcos, the Berry Brothers, Bob
Williams,
Lucille Norman, Olson & Shirley and Con Colleano.
mind
cannot
as
to
4s
somewhere
and
116,
I
-
be¬
.
don't
any more from present ac¬
tion.
make
up
that
arrangements
worked
out.
Associated
date
we
were
being
Washington
From
Press
quote:
accounts
*
that
•
The Navy Department said in a
Hold all positions in the in¬ statement that a circular
"is being
terim. ' You have been
distributed without delay to all
given
its
"stop" and profit taking ships and stations," giving the
official wording of an
application
prices, in all stocks recom¬ for an
trend.
4S
to
112
see
(Continued from page 1069)
market
.
1087
4s
absentee
The future of the market is
ballot.
Tor the
mended here with the
excep¬ more remote ships and stations
hazy as1 it was last tion of Pittston. You hold these instructions are being''dis¬
week or the week before. Un¬ this at l3/4. Its now 2%. For patched by radio, the Navy said. ;»•
Since the first of the
variety shows opened on Broadway there
The Navy decided to do
til some of the
away
has been an influx of vaudeville
problems men¬ the more venturesome Pitts- with the distribution
hoping to cash in on the revival;
of printed
Some of them were good, some just so-so and others
just plain bad. tioned above get real answers ton might be held; for others application forms to save
time, so
St wasn't until Fred
I suggest
Finklehoffe, who helped write "Brother Rat," it will stay that
profits across 3 or that ballots could be obtained
way.
came East with his "Show
Time" that variety began to look
up again.
45
45
4s •
early enough for return to this
better.
."Show Time" has real
performers who know show business and their
country to be counted by Election
.way around a stage. Jessel's performance
But if news has a
More next
(he's seldom off the stage)
Thursday. "
depress¬
Day.:.: ;• r ' •
v '
::
"
is tops.' Almost
everybody has seen or heard Jessel's phone conver¬ ive effect certain market in-!
—Walter Whyte
sation with his mother, still his
showmanship-is so good even his
[The views expressed in thi:
dications, based purely on
old material leaves the audience
limp from laughter. Jack Haley's
Extends Filing Time
irticle do not
necessarily at an\
■style is a perfect foil for Jessel; Haley, who also knows how to tell performance, have an influ¬
time coincide with those
On Capital-Stock Tax
stories and do the little bits of business which
of tht
ence.
For example, the rails
make for good show¬
Chronicle. They are presented a:
manship, is always amusing.
The Senate passed on
In j"Show Time" he outdoes himself. mentioned here from time to
Sept. 17
those of the author
His operatic version of
only.]
and sent to the White
"Chattanooga Choo-Choo," or his reading time as
House a
being in a move posi¬
of a letter he received from
the draft board, are comic
resolution extending until Nov. 28
gems.
Ella
tion, have gradually acquired
Logan, the Scotch burr present in her husky voice, almost
the time for
Soldier Vote Bill Signed
brings the
filing return of cap¬
house down with her "Tipperary."
ital-stock tax in 1942, These taxes
The DeMarcos skim gracefully a following.
This means that
President Roosevelt signed on
.and
beautifully through their dance interpretations. Bob
were
more and more rails will now
normally due on July 31 but
Williams,
Sept. 16 the bill giving the mem¬
of the infectious
grin and lazy dog, soon has his audience eating out come
the Treasury extended the
in for public attention, bers of the armed
period
of his hand.
Lucille Norman sings
services, both to Sept. 29. The House
pleasantly. The Berry Brothers,
had passed
within
With the market in the
and
without
the colored
the
conti¬
dancing trio who have been seen in many movie
posi¬
the measure on Sept. 15.
musicals,
Repre¬
knock themselves out with fast
tion it is I don't think the nental limits of the United States sentative
steps.
Con Colleano does the im¬
Doughton (Dem., N. C.)
the right to vote in
possible on a wire, rope.
primary and Chairman of the
Olsen & Shirley, a handsome couple, do group is worth
Ways and Means
following any general elections by absentee bal¬
.acrobatic steps with skill and abandon.
Its a well rounded
Committee, said that another 60
The rails are now in lot.
show, more.
Passage of this bill by Con¬
superbly performed by some of show business's master
days' extension was necessary in
craftsmen, their
last third of the ad¬ gress was reported in these col¬
Of course, as Jessel
view of a pending
succinctly put it, "If God forbid, you should hap¬
proposal to re¬
umns Sept.
pen to miss it, you don't have to shoot
vance. This
17, page 989.
phase is frequent¬
peal the law.
In urging the ex¬
yourself."
But if you want
Secretary of War Stimson on
.laughs pile3 on laughs, then "Show Time" is
your dish.
: ly
tension, Mr. Doughton explained
accompanied by increased Sept, 17 reiterated the
War De¬ as
follows:
dividends, v bullish talk and partment's objection to mailing
THE MOVIES
"The House tax bill amended
better than
average market the necessary ballot-application
/
still
as
-
--
-
-
~
.
''
'
r
-
I
.
i
.
'
There have been times
when'Hollywood tried to make what it
called "starless"
pictures. Other times it made pictures with lots of
•stars.
But until
somebody else comes up with something
new, 20th
Century-Fox's "Tales of Manhattan" will stand
out as the movie in
which every part
starring, featured or supporting, is handled by a
star.
In a series of five
sequences the actors get an
opportunity to
romp across the screen in
drama,
the
-
-fantasy.
If there is
cards and ballots to soldiers
activity.
It's good while it
lasts, but the end of the phase
seas,
brings danger to
tion
that much closer.
because
and
volved.
the
melodrama, comedy, tragedy and
star
saying it would be "unfeas¬
ible"
buyers
new
over¬
the
technical
He
Army
ister the
of
transporta¬
problems
in¬
present law
for
an
than
annual
a
so
as
to
provide
declaration
declaration
rather
third
The Senate committee has
adopted a tentative provision wip¬
every
year.
added, however, that ing out the capital-stock tax.
prepared to admin¬
was
new
law within the
con¬
the
Senate
provision should
If
pre¬
vail, this resolution is
The industrials on the other
necessary.
tinental United States. 3
Otherwise the corporate-tax pay¬
hand have yet to move ahead.
Although Secretary of the Navy ers would have to file their re¬
Knox had earlier expressed sim¬
With the 108-110 level
turns, pay the capital stock tax,
widely
ilar views as to the
impracticabil¬ and should the Senate provision
advertised I think
it
very
ity of attempting such voting out¬
Boyer's butler, Roland, Young,;to Eugene
prevail, the Bureau of Internal
Pallette, butler to Cesar likely that within the next side the
Romero.
Because of some letters Romero's
country, the Navy De¬ Revenue would have to refund the
fiancee, Ginger Rogers, few weeks the market will
partment announced on Sept. 18
go
jilts him and marries best men,
payments."
Henry Fonda. Tail coat turns up in
a
in
"Tales
of
Manhattan"
tail coat which travels
it's
an
elegant
through the nation's social scale bringing good
disaster to others.' It's first delivered to
Charles
Boyer, a philandering matinee idol, who is shot
by Thomas Mitchell
because of attentions to his
wife, Rita Hayworth.
Coat is sold by
luck
to
and
some
pawnshop where Elsa Lanchester buys it for her
hushand, Charles
Laughton, to wear in his debut as conductor of own
symphonic com¬
Coat tears and audience howls with
laughter.
But Victor
position.
Francen
audience, sympathizing, shed coats.
triumph. Coat is now in Bowery Mission
by James Gleason, who persuades a
bum, Edward G.
Struggling
run
to
to the rescue and
comes
This advertisement
composer has a
it to class reunion at
Waldorf-Astoria.
mates and he gets new start.
wear
construed
Robinson,
Coat impresses class¬
buy
as
any
appears
an
as
a
matter
offering of these
of such securities.
of record only and is under
securities
The
Finally, the coat is stolen by crooks, who
A fire breaks out in plane used by
escaping crooks
and coat, stuffed with
money, is thrown out. It lands at feet of
.wear
it to
sponsible, Boris Morros
no
circumstances to be
solicitation of an offer to
offering is made only by the Prospectus.
and S. P.
Eagle,
Negro
well conceived
producers
re¬
were two years in
getting the
best writers, Ben
Hecht, Ferenec Molnar, Donald Ogden
Stewart, Samuel Hoffenstein,
Alan Campbell, Ladislas
Fodor, L. Vadnai, L. Gorog, Lamar Trotti
and Henry
Blankfort, had a hand in writing the story and
thirty
names, all top performers in their own
right, did their best. It's a
good best resulting in an excellent picture.
In an attempt to
cover the
and
or as a
holdup.
sharecroppers, Paul Robeson and Ethel Waters. It's a
;picture, expertly handled and well acted.
The two
.story
for sale,
the cast
together.
Ten
of
the
screen's
Burlington Mills Corporation
50,000 Shares
...
home
effort MGM has produced "The War
Against Mrs.
Hadley" in which it tries to picture a hard-shelled
anti-New Dealer
who believes the war and all its
problems are merely personal in¬
conveniences aimed at her
by an unfriendly Administration.
Stella
Hadley (Fay Bainter), wealthy widow of
newspaper publisher, is in
her Washington home
celebrating her birthday when news of De¬
cember 7th comes over the radio.
Edward
war
Arnold, a War Department
official, and her son, Richard Ney, who works in the
Department,
hurriedly. Mrs. Hadley is piqued. As the war
develops, Mrs.
Hadley continues to keep-aloof. Her
son, a playboy, is drafted and
Mrs. Hadley blames Arnold.
She turns against all her
v
Cumulative Convertible Preferred
Stock, $2.50 Series
;
(without
:
'leave
Price
$51.25
-
friends and
disowns
.'even
her daughter
(Patricia Rogers) because she marries
(Van Johnson) who is a social
nobody.
It isn't until the
papers print story of her son's heroism and
the award
a
value)
per
Share
(plus accrued dividends from September 1, 1942,
to date of
delivery)
*
soldier
that she
comes
Hadley"
is
American
out of her shell
by
no
version
of
means
"Mrs.
of isolation.
Copies of the Prospectus
Min¬
exists.
30 CENTRAL PARK
The
United
Building
&
Loan
Smith, Ark., will be glad to
send
investors, trustees, and other
fiduciaries
more
interested
about insured
in
learning
Federal Sav¬
ings & Loan investments full
ticulars.
of- 4%
Gurrent
A
a
most
unique
restaurant
in
beautiful location,
overlooking
Central Park
to
per annum.,
State from such of the several Underwriters,
in such State.
Wertheim U Co.
Incorporated
Union Securities
Serving
best
A. G. Becker U Co.
the north.
food,
skilfully
prepared.
R. S. Dickson & Co.
Incorporated
Entertainment after 11 P. M.
par¬
dividend^ rate
;"• * ^
any
lawfully offer the securities
Lehman Brothers
Association, 519 Garrison Avenue,
Fort
as may
SOUTH
Adjoining The Plaza
Insured Investment For
Investors And Trustees
be obtained in
The Penthouse Club
it's a good movie
fine purpose.
a
may
including the undersigned,
that respect
serving
of the DSC
"The War Against Mrs.
an
iver."
It doesn't have to be.
It
does speak out against a situation
which sadly enough still
In
par
September 24, 1942
Telephone PLaza 3-6910
Corporation
Merrill
Hallgarten & Co.
Lynch, Pierce, Fenner & Beane
1 »
,
„•
•
.
.
Thursday, September 24, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1088
*
,
Ft. Pitt
FOUNDATION COMPANY COMMON
Penn. Central Airlines
(Estimated by Standard
1942„_u.$3.65
Tax
WE MAINTAIN A POSITION
38c.
1941
Earnings:
Base
Post War Prospects: Point
approx.
*
c-v
Statistics)
$4.
.
v
IN
-
•
•
Convertible Preferred
.
.
Mexican External
FOUNDATION COMPANY STOCK
and Internal Loans
study of
every
Sent free on
dealer and investor.
request.
.
Bought—Sold—Quoted
.,
BUCKLEY BROTHERS
LUCKHURST & CO., INC.
New
Members
STREET
BROAD
'
'
1529 WALNUT
M. S. WIEN & CO.
^
ST., PHILADELPHIA
Members N.
Ass'n
Dealers
Security
York
Tel. Rittenhouse 4488
NEW YORK, N. Y.
;
Teletype PH. 265
4
Lehman
Company
the
Foundation Company from visible evidence.
The achievements of
this great engineering
and construction enterprise literally are
carved in the skyline of Manhattan itself.
Wool worth, Federal Re¬
serve Bank, Bankers Trust, Municipal, American Telephone & Tele¬
graph, Liberty Tower and many other New York skyscrapers are
spectacular
advertisements
to <§>
with but 165,000 shares of
American industry in general and pie
fraternity, like the rest of the world, know
accomplishments
the
particular.
in
tion
of Founda¬
The founda¬
structures
tions for these colossal
typify the work performed
throughout the world by
The
Foundation Company.
The Foundation Company
is
en¬
gaged in a general engineering
and contracting business, special¬
izing in foundation and construc¬
work, including subaqueous
work of all kinds, the building of
tion
plants, power develop¬
hydro-electric
develop¬
ments, railroads, bridges, harbor
and river terminals and general
building construction.
The Com¬
industrial
ments,
the
in
directly
operates
pany
United States and insular posses¬
and
Central
Cuba,
sions,
South
An
Indies.
America and the West
enterprise of such cumulative ex¬
immediate
perience, capacity and
qualification is bound to play a
major role as a defense builder
and in the post-war reconstruc¬
tion.
>
■
Capitalization is extremely sim-
New York Stock
Exchange
Weekly Firm Changes
Exchange
announced the following
The'New York Stock
has
weekly firm changes:
v : \ :
Transfer of the Exchange mem¬
of J. Grenville Bates,
James B. Taylor will be
considered on October 1. Both are
bership;
to
Jr.,
Bates & Co.,
York City, which will con¬
as
an
Exchange member
partners in Taylor,
New
tinue
firm.
proposal
The
William C.
that
alternate on the floor
of the Exchange for Bayard DomiBeach act
as
partner in Dominick &
Dominick, New York City, will
be considered by the Governors
II,
nick
of the Exchange today.
Eugene M. Thomasson
withdrew
partnership in Elder & Co.,
Chattanooga, Tenn., as of Sept. 1.
Stephen J. Stroock & Co., New
York City, dissolved as of Sept. 19.
from
stock of $1.00
common
debt
New
The
Forum
curity Analysts, Inc..-will ..'hold
their railroad group forum on Fri¬
day, Sept. 25, at 56 Broad Street,
New York City, at 12:30 p.m. Mr.
Tierney of the
ern
cumulative
value
ing. The small capitalization gives
Foundation Company stock
the
the Foundation Company ap¬
for
be
to
pear
General
The
taking
place.
Investment
ganization proposals and prospects
Milton has re¬
headed
by David
cently
announced
the
intended
liquidation of this investment trust
sales less discounts, re¬
turns and allowances for the nine
months ended June 27, 1942, of
had gross
industrial
year.
new
company
order
enter
to
Corp.
the
&
Lynch, Pierce, Fenner
Beane.
and
tary
civilian use
depend
must
on
domestic production
of all natural
substantial
possible,
rubber
',v,
mili¬
of rubber
imports and
report states, "Current
the
Mills, directly and amounts of synthetic rubbers, and
subsidiaries, is en¬ a maximum of reclaimed rubber."
gaged in
manufacturing woven Most of the
study treats less of the
fabrics
from
rayon
yarns
and
actual
manufacture
of
rubber
rayon mixtures, and to some ex¬
tent from cotton yarns; throwing
products, and more of the poten¬
and dyeing rayon yarns, and to tial
supplies and sources of rubber,
some extent cotton yarns; dyeing
synthetic, reclaimed, and natural.
and finishing cloth, and selling the
Stressing the importance of re¬
manufactured goods.
The busi¬
ness
is integrated from the pur¬ claimed rubber, the Armstrong re¬
chase .and throwing of yarns to
port says that the patriotic cam¬
the
finishing
of
manufactured
paign for scrap rubber brought in
products and their sale and de¬
livery, either in the greige or in 454,155 tons, which at normal
the finished state, to the consum¬ yields should make approximately
ing trades. Burlington Mills oper? 380,000 tons of reclaimed rubber.
ates 44 principal plants and prop¬
The potential supply of reclaimed
erties, located in North Carolina,
rubber, from 168,000,000 automo¬
Virginia and Tennessee.
I'.
Burlington
through
its
and
bile
Rubber Industry Study
j
<
Based
that
of reclaimed
official announcements
on
synthetic rubber capacity
new
872,000 long tons annually had
been authorized by Aug. , 1, 1942,
it is evident that the announced
of
contemplates
program
90%
that over
of that capacity will be used
producing buna S and butyl
rubbers, according to a study of
the rubber industry just released
for
George S. Armstrong & Co.,
Inc., 52 Wall Street, New York
City,
industrial
engineers
and
management consultants.
by
The
try
study of this critical indus¬
undertaken
several
and in its present,
was
months
ago,
completed
fourth in
form
a
constitutes
the
series entitled "An En¬
is estimated
tires
truck
the equivalent
as
of 825,000 tons
rubber, says the re¬
derived from
port, "and with scrap
products should be almost
other
sufficient, if wisely
produced and
distributed, to continue the opera¬
20,000,000 cars for
tion of at least
The Brookings In¬
the duration.
stitution
minimum
sary
of
estimates
to avoid serious
economy
our
this
derangement
and war effort."
Copies of the study,
sued in the form
brochure,
the
is
number of cars neces¬
may
which is is¬
of an attractive
be had upon
quest from George
York Stock Exchange
N.Y. BOwlin? Green 9-7030
Teletype MX 1-61,,
r.
J,
re¬
P. Armstrong
& Co.
in North and South
be
able
to
struction
which
America, will
obtain important
con¬
work, the production of
Foundation Company
the
ing up not only Brazilian produc¬
tion but may well accentuate the
upbuilding of practically
American
South
all of the
countries
on
a
expected
is
the Foundation Company
York, and
of
name
of
of New
thereafter assume the
Foundation
pected
Industrial
Investment
General
that
plan which requires a twoconsent
of V the
common
to
with the Foundation Com¬
of Delaware, a subsidiary
pany
mutually satisfactorily
thirds
.From
stockholders.
reliable
only 50,000 shares more
common
stock are needed to
sources,
of
make this
total
It
plan effective, out of a
of
719,000 shares necessary.
is expected that the Founda¬
tion
Industrial
with
its
and
its
Engineering
Co.
strong financial position
very
important
contacts
possesses
important South Amer¬
ing.
position,
not only
for the present but for post-war
times/ plus a good tax base and
for the building of roads in Gosta distinct possibility of a substantial
Rica, according to official sources. dividend payment by early 1943,
ican contacts.,..
,
example, the Company has
just closed a $2,500,000 contract
with the United States Government
For
With Brazil actively
engaged in
II, the United States
Government is interested in build¬
World
improved financial
An
j
War
important new contacts,
makes
mon
Foundation Company Com¬
appear
to possess unusually
at this time.
attractive possibilities
Bought
any
Sold
—
—
Quoted
<
pfd.
HAY, FALES & CO.
and Merrill
circumstances,
present
Under
Wertheim
Co.,; R. S. Dickson & Co., Inc.;
&
000.
Ward & Company
Established
.
the
Foundation Cc). of N.Y.
Susquehanna Silk Mills
...
are
Co.; A. G. Becker & Co., Inc.;
Union Securities Corp.; Hallgarten
and the Foundation
United Piece Dye, pfd.
71 Broadway
in the offering
&
Company of New York is expect¬
ed to put in approximately $165,-
COMMON
Members New
Associated with Lehman Broth¬
ers
preferred stock during that
"■,
•
;• ,■
lative
R. Hoe & Co.
Boston & Maine, 1st
of
basis. Pros¬
The General Investment Corp. of New York is expected to com¬
engineering field. As a first step stockholders are now expected to plete on ^"mutually satisfactory pects for construction in South
America, therefore, after the war,
in this'direction, the General In¬ meet on October 13th for approval contract arrangement. In addition,
the Foundation Company already may be said to be indeed promis¬
of this
in
Corp. will place $1,000,000 in the
for that road.
Interpretation
upon
Corp.
now
Colorado & South¬ Engineering Co., Inc.%. It is ex¬
Railway will discuss the reor¬
preferred
convertible
$2.50 series (without par
value).
The corporation, which
stock,
$61,064,148,
as
compared with
necessary qualifications for favor¬ $63,165,310 in the fiscal year ended
September 27, 1941, plans to add
able market action.
to its general working funds net
The Foundation Company is ex¬
proceeds to be derived from the
pected to complete approximately
sale of this stock.
Based on this
$25,000,000 of construction work
increased volume of business, the
in 1942.
This includes the con¬
additional funds will be needed
struction of shell loading plants,
and
used, it is anticipated, to
magnesium products plant, float¬
maintain
cash balances and
to
ing dry docks and shipbuilding
assist in carrying inventories, ac¬
and repair facilities.
Because of
counts receivable and other cur¬
the essential nature of the busi¬
rent items, and to provide for the
ness, priority ratings are high and
corporation's future requirements.
no material shortages are expect¬
The $2.50 series preferred stock
ed.
Then too, contracts on a costwill be convertible into common
plus basis assure profits despite
stock
of the corporation at the
higher material and labor costs.
price of $21 per share of common
Reflecting the large volume of
stock-taking the shares of $2.50
heavy construction, revenues from
series preferred
stock at $50 a
contracts in the first six months
share.
Stock of this series will be
of 1942 were only 13% less than
redeemable in whole or in part at
the revenues for the, full
1941
$53.25 per share if redeemed at or
year.
prior to September 1, 1946, and at
Earnings for the half period to¬ $52.25 per share if redeemed at
taled $1.55 a share in contrast
any time thereafter, plus accrued
with $0.38 a share for all of 1941. dividends in each case.
It is interesting to note that con¬
As a sinking fund for the bene¬
servative, estimates
of earnings
fit'of the $2.50 series preferred
for the full 1942 year place earn¬
stock
the corporation is to -set
ings on the common stock in the aside
annually, commencing with
neighborhood of $3,60 a share, by the fiscal year beginning on or
Standard Statistics.
about October 1, 1943, so long as
In
the
past
few years,
the there shall be outstanding any
Foundation
Company's
finances shares of the
series, an amount in
have been strengthened in a sig¬
cash, subject' to- certain credits,
nificant manner apparent in many
equal to 2% of the consolidated
ways besides the retirement of its net
earnings of the corporation
RFC and Chase Bank loans.
;
and its subsidiaries for the next
Important and far reaching de¬ preceding fiscal year, after de¬
velopments concerning both the ducting interest on all funded debt
near term and post-war prospects
and dividends paid on the cumu¬
merge
Se¬
York Society of
corporation
Offers Pfd. Stock Issue
There is no funded
preferred stock outstand¬
or
gineering
1-1U#7
Y.
N.
completion of Economic and Financial Aspects
this
financing
will
consist
of of American Industry" by the
$6,000,000 3% promissory notes, Armstrong Company.
As sum¬
payable serially; 73,813 shares of marized in the press the emphasis
A
banking group headed by cumulative convertible preferred
of the Baruch Committee's recent
Lehman Brothers is offering today
stock, $2.75 series; 50,000 shares of report is most properly on public
at $51.25 a share and accrued divi¬ cumulative convertible preferred
policies which, in the Armstrong
dends a new issue of 50,000 shares
stock, $2.50 series; 659,969 shares study, are treated only by infer¬
of Burlington
Mills Corporation of common stock.
ence.
outstanding.
vestment
N. Y. Analysts
par
Syndicate
Dealers Ass'n
N.Y. -HAnover 2-8780
Teletype
Outstanding capitalization of the
The investment
Y. Security
25 Broad St.,
Teletype—N. Y. 1-1825-1826
The Foundation
Cfs.
Mexican Interest Arrears
Prepared by our Research Dept., is worthy of the
Analysis:
60
•
tremendous post war business.
to
Bridge Works
Common & 6s of SO
120
Telephone—REctor
PRIVATE
WIRES
2-8700
TO
EARL E. I WIND
1926
BROADWAY, NEW YORK
BOSTON,
-'
Incorporated
Teletypes—NY 1-1288—1-2173
HARTFORD. PHILADELPHIA, LOS
ANGELES
Hartford* Conn.
Of IVarl Mlrwl
:
.
1
@FedFRASER