Full text of Commercial and Financial Chronicle : September 27, 1945, Vol. 162, No. 4424, Section 1

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wrap

ADM-

jRAR*

Edition
»ii)l

Volume

V.

a

i" \

ESTABLISHED OVER 100 YEARS

162

Number 4424

New

Belgians Air Their
Economic Problems

By

A
Out¬

Financial Official Optimistic on
of Moves to Curtail Inflation

come

Accomplish Economic Rehabili¬
Is Dubious Re¬

garding the Link of Belgian Cur¬
the Pound.

rency to
*

BRUSSELS, BELGIUM

Bel¬

—

gium still feels the pinch of war.
But there is evidence that condi¬

tions

slowly improving.

are

£'.v

v.

An

example is
improve¬

■

the

the

in

ment

food situation.

|

Belgian

CHESTER BOWLES*

tinuance of Price

third
f?

Ever since Mr. Jordan invited me to speak to
you, I have been
pondering just what type of speech I ought to make. I could do just
:f- what I have^
done

•>

before..

situation, ex¬
plain the polf'.Icies ; and
techniques we

one-

more

'•

•

The meat ration
900

1

was

increased

to

Index

of

Regular

Features

1488,

-

.

I

is
called

for

ha
However,

tonight.

p s
on

thought, it seemed to me
that you were entitled to a more
forthright statement.
other

in

men

business,

are

I, and

many

Government

and

deeply disturbed by

of the conditions which

some

round

It seemed to

us.

♦An address

me

sur¬

only

why

we

ought to

evening is how
the wartime controls that still encumber

remove

^production.
|

Employment In
g| Exchange for
;

Waldorf

-

Astoria

Hotel.

;

whether

some

of these

controls
wise

By WALTER E. SPAHR
Monetary Policy

p e c

Dr.

t

RETAIL DISTRIBUTION

Bought—Sold—Quoted

and!

are

of

of

Henry Hazlitt

:

'

During

Enterprise and Individual Freedom; and (6) That
It Creates

a

Socialistic

Nature.

"Welfare State" of

a

Should the Full

•

L!

certainly a strong
argument for price controls!
The

Communistic-'

was

as

*An address
lore the

of

the

by Mr. Hazlitt be- '

General Session Meeting
National Industrial Con¬

ference

Board,
Waldorf-Astoria
Hotel,
New
York
City,
Sept. :
20,- 1
; i;
(Continued on page 1465)

Public Works.

the

the

there

war

Alternatives, the
Fostering of Fair Competition, the Narrowing of
Government Activities, an Ethical Monetary and
Fiscal System and Properly Conceived and Executed
Suggests

Employment bill become law,

,

people of the United States apparently will
importance has

find that something of far greater

Dr. Walter E. Spahr
happened to them than they now seem to suspect.
Although several competent analyses have been
/
made of this bill, their net effect may be extremely limited.. The

NEW YORK STOCKS,

INC.

Bond

interested in blocks

attractively

d

e

Spahr, Attacking the "Plausible Propaganda in the Full Employ¬
them, but that
ment Bill", Contends (1) That It Is Based on a National Budget
Concept would be be¬
side the pOat
Incapable of Accurate Measurement; (2) That It Is
now.
We still
a
Series of Assertions Cut Loose From Realities;
have some of
(3) That It Puts Into Effect the False Idea of a
these controls,
and the ques¬
"Compensatory Economy"; (4) That Its Execution
tion is what to
Will Be Controlled by a Small Group of Govern¬
do with them.
ment Statisticians;
(5) That It Impairs Private

State

We Specialize in

~

■

the

place, or
whether
they
a c complished
what wa£ ex-

(Continued on page 1480)

Instrument Corp.

were

in

first

Professor of Economics, New York University
on

It

in-

be

ask

'

Secretary, Economists' National Committee

might

teresting V to

Full

by Mr. Bowles be¬

New York City, Sept. 20, 1945.
[
(Continued on page 1476)

Common Stock
?

tha

of

p e r

second

%
1

around

fore the.271st meeting of the Na¬
tional
Industrial
Conference

General
t

a

two

corner.
think

some

Bowles

Chester

Board,

•1.

and

what

1 ies

f ihe

on

-

cope

or

about

e

1,500
grams
per
month. The 900-gram ration last
(Continued on page 1473)

page

guess

rations,
there
are

seasonally
large,, quantities of fresh fruits
and vegetables, and certain other
un rationed foods, as well as
sup¬
plementary
rations
for
heavy
workers, etc., and black market
food for, those who can afford it,

been

hazard

Wsic

availab

Herbert M. Bratter

have

using to
with
it,

the

to

the

;

inflatio nary

during

dition

on

to

up

date

previous
period. In ad¬

E

I

bring

Municipal

Brokerage

Service

situated

Bonds and Stocks.
»

Hirsch & Co.
Successors

HIRSCH,

for Banks, Brokers :

R. H. Johnson & Co.

to

LILIENTHAL Se

CO.

INVESTMENT SECURITIES

and other Exchangee
London

-

Geneva

Rep.

Prospectus on Request

64 Wall Street, New York 5

-i

25 Broad St., New York 4, N. Y.

tr

HAnover 2-OGOO

Teletype NY 1-210

Chicago

and Dealers

Cleveland

BOSTON

PHILADELPHIA
Buffalo -r Syracuse

Troy

Albany
Pittsburgh
Dallas
Springfield

Wilkes Barre

Baltimore

Woonsocket

BOND

HUGH

BROKERS

-

WALL STREET

NEW YORK

3&

14 WALL ST.. NEW

YORK 5,N^Y.

Solar Aircraft

TELEPHONE-RECTOR 2-6300




-

Tel.

REctor 2-3600:

Q

Ass'n

Teletype N. Y. 1-676

Philadelphia Telephone:

York Curb Exchange

Tel.

NATIONAL BANK

New York 4
OF

DIgby 4-7800

Conv.

Brook Water Co.
7

$6 Preferred

Enterprise 6016

Bell

on

Company

N. Y. Curb Exchange

Preferred
on

request

Exchange

Broadway, New York 5, N. Y.
Telephone:

NEW YORK

Scranton Spring

Dealt in

Members New York Stock

120

CITY OF

THE

Tele. NY 1-733

Alloys, Inc.

Reynolds & Co.

New York 5

45 Nassau Street

New

30 Broad St.

Preferred

INCORPORATED

Y. Security Dealers

THE CHASE

,

& Preferred

Kobbe, Gearhart & Go.

\

Hardy & Co.

Manufacturing
Corporation

MARKETS

Members N.

''1

Bond Department

<

Members New York Stock Exchange
Members

LOS ANGELES 14

Prospectus

f

;

Aireon

90c

BULL, HOLDEN & C2

,

634 SO. SPRING ST.

5

Common

SECONDARY
,

^

COMPANY

INCORPORATED

48

FINANCE
•

W. LONG ond

Acme Aluminum

CORPORATE

MEMBERS NEW YORK STOCK EXCHANGE

.

Established 1927

Members New York Stock Exchange

to

The subject that I should like to talk about this
and

often

so

could

the

*

.Concludes It Is Better to Have Maximum Production and Full

'

:

than

trols.

Condemns "Mild Inflation" and Promises Discon¬

Ceilings When Conditions Warrant.

.p e r

or

Unemployment, and Denies

Employment Than Price Stability, and That Remedy Is a Return
Prudent Government Spending and a Free Market Economy.
!r-

1,900

day,

Decontrol Will Hinder Production and Create

in Business Profits.

resent

calories
>

trols, They Are Not Suitable to Peace-Time Economy. Characterizes as
Unworkable "Black Magic" the Policy of Granting
Wage Increases
While Withholding Price Increases, and Says Formulas
Adopted Are
Complicated, Unrealistic and Unfair. Holds Present Policy of Gradual
That Price Fluctuations After Last War Were Due to Lack of Price Con¬

you

>v

•

and, if Not Curbed, Would Lead to Temporary Boom Followed by Severe
Depression. Defends the "Cost Absorption" Policy and Sees No Decline

period begin¬
ning Sept. 13
about

Copy

Mr. Hazlitt Contends That Whatever the Merits of War Time Price Con¬

Control, Despite Pressure Groups to "Crack" It, Points Out the Dangers
of Price Inflation Which He Contends Would Result From Control Re¬
movals.
Says Present Inflationary Pressures Are Greater Thau Ever

rations for the

rep

a

By IIENRY HAZLITT*

Administrator, Office of Price Administration

food

,

Price 60 Cents

Member, Editorial Board of the New York "Times"

Mr. Bowles, After Recounting the Accomplishments of Wartime Price

basic

The

from

!

Releasing Price Controls

Inflation

Belgium Eases Food Rationing.

tation. A Banker

York, N. Y., Thursday, September 27, 1945

Continued Price Control ta Retard

By HERBERT M. BRATTER

and

In 2 Sections-Section

i

REctor

Teletype

NY

HART SMITH & CO.
New

York

Dealers

52 WILLIAM ST., N. Y. 5

Bell

2-8600

1-635

Security

Teletype NY

ira haupt & co.
Members of Principal. Exchanges

Members

Assn.

HAnover 2-0980
1-395

111

Broadway

New

York

REctor

6

2-3100

10 Post Office Sq.
Boston
Hancock

9
3750

Tele. NY 1-1920

New Yor*

Montreal*

Toronto
Direct

Private

Wire to

Boston

THE COMMERCIAL &

1450

CANADIAN INDUSTRIALS

WANTED :r

v

.

Exceptional opportunity of¬
experienced
trader#

and liberal
Strictly con-

profit#.

Established 1920
Members

Dardelet Threadlock

A

Elk Horn Coal
Preferred

g

Van Alsfyne,
Major Gilbert

Banker, Asserting That Methods of Managing the Public
Debt Will Have to Be Changed, Points to the Heavy Service Cost as

1-1227

International

In

Savoy Plaza

I

"long

Vanderhoef & Robinson

f

Bell System Teletype NY

a

ma¬

Campbell

I

the

of

Limestone

!

Preferred

;

/

H. G. BRUNS & CO.
New York 5

Telephone: WHitehall 3-1223
Be a

Teletype NY 1-1843

Boston. & Maine,

We used to discuss
A.

G.

Lanston

ing held a number of years ago,
in ? which an outstanding banker
was

talked if the determination of
details

that,

almost

Cer¬

credit,

fiscal

of Government

investors

bonds.

whose

earnings

assets

rest, and will continue to
rest, largely on Treasury secur¬
ities, 'questions as to the nearprices and yields, the details of
Treasury financing, etc., are im¬
portant. During the past couple

1127

*An address

by Mr. Lanston at

the annual convention of the Sav¬

e

set

t h

e r

we

Buda

Company

Cleveland Cliffs Iron Co,
$s

Cliffs

at

the

New

Ocean

House, Swampscott, Mass., Sept.
22, 1945.
(Continued on page 1478)

/

Common

held

165 B'dway

4fcs, 1958

"full
employment"

as

.or

the national

ahead.

goal, foreign
trade
make

con¬

were

V-J

Day is still

gaged

a

re¬

a

sounding

the

Pacific.

William

S. Swingle

that

stubborn enemy carried
their duties so well that the

out

a

Unexpected

but

come

wel¬

news

to

of us. We look forward now

many

?An address by

Mr. Swingle be¬

Managers Club of
Chicago, 111. Sept. 20,

fore the Export

Chicago,
1945.'

*

trade.

foreign

in

Cross Company*
Liquidometer Corp.*
Delaware Rayon "A"*
New Bedford Rayon "Aw*
Great American Industries
Indiana Limestone, 6s, *52
San Carlos Milling Co.*
;* Analysis on request

help

nations

111

given to the

was

of

economies

the

friendly

ad¬

allied

could

be

or

most

Government
controls.
Secondly, while we assisted the
stringent

Government in all possible ways,
we were at the same time vigilant
on page

,

Y. Security Dealers

Ass'n

Broadway, New York 6, N. Y.

NY 1-1028

BArclay 7-0570

Punta Alegre

but

effectively maintained while our
own war economy was kept at a
peak of production, foreign trade
was
necessarily
subjected
to

(Continued

-

F. H. Holler & Co., inc.
Members N.

First,

justments which were exceedingly
difficult .and irksome.
In order

Americans

fighting

6

YORK

HAnover 2-9470

.

.

v

kept in mind by those en¬

tinued to operate in business,
found it necessary to make

vic¬

in

tory

NEW

'

-

winning of the war. Many for¬
eign traders entered directly and
voluntarily into Government serv¬
ice to work on problems of supply
and allocation. Many others con¬

Army, the
Navy and the
won

-:
; ■■ '■■■■' ■■■■■■
■ •; :
for the first time in six

maximum

recent
The

very

full em¬

,,

sub¬

a

York Curb Exchange

Members New.

Teletype NY 1-1140

During the war years we made
every effort to meet the existing
situation. Three major objectives

can

stantial

Frank C. Masterson & Co.
'64 WALL ST.

traders must not,
found unprepared
to participate to the fullest in the
peacetime
commerce
that lies

"prosper¬

ity"

-

Sugar Corp.

.

Haytian Corp.
Quotations Upon Request

CO.

FARR &
Members
New

New

York

Stock

Exchange

York Coffee & Sugar

120 WALL

Exchangs

ST., NEW YORK

TEL. HANOVER 2-9612

1483)

Pfd.

Corporation
Common

Segal

Detroit & Canada Tunnel

Lock & Hardware
<t

Morgan Engineering
Common

Preferred

Setay
Corporation

Engineering Co.4

Ohio Water Service
Common

DEALERS

Wellntan

Common

West

Great Amer. Industries

years. Foreign
and will not, be

ings Banks Association of Massa¬
chusetts

New Com.

Trade Council

make a distinction between the

to peace

surrender of Japan came as

Assn.

Hanover 2-4850
&

Government bond

of

trend

"A" &

Pfd.,

SWINGLE*

^

■■■■

-

Air Forces

Preferred

1-1126

WHitehall 4-8120

way

Concludes "We Need Be Neither Santa

event.

To

Dye Works

St., N. Y. 5
Teletypes—NY

science.

exact

Government

field

Members N. Y. Security Dealers

Wall

the contrary, it was

on

an

wh

tribution.

public

^reeuecmdCompoTYu
Bell

borrow¬

was
not
pretty much a
guess-work proposition. His reply

Was

term

37

Broad

Bell System Teletype NY 1-1919

"

Trade Outlook

It is difficult for me to

ployment.

public debt, and
policies com¬
prise a science of the first order,
and all of these are a part of the

Stpd. Pfd.

Plain Preferreds

&

Treasury

ings

New England Public Service

Common

of

tainly, the multitudinous problems

Luscombe Airplane

United Piece

55

interrupted by

prosperity, nowadays we talk about

two ideas..-But

that go into the sound operations
of private banking, private credit,

Botany Worsted, Com. & Pfd.

•

Exchange

Southern Colorado Pr.

Foreign Trade Expansion and
Claus or Uncle Shylock."

the

20 Pine Street,

Exchange

Members New York Curb

war.

Foreign Commerce. * Stresses Need of Increased Imports, Lend-Lease
Settlements and Clearing, Up of Sterling Area Problem in Promoting

Treasury

a

the

in

Finance meet¬

Issues

and

as¬

reminded

am

of

Struthers-Wells
Common

will

Hope That the Problems of Foreign Exchange and Dollar Securities
Be Solved.
Warns, However, That Foreign Trade Expansion
Should Be Conducted by Experienced Men With Knowledge of Factors

technical. Yet,

Common

All

Members New York Stock

for

find it not too

Common

Indiana

he

investment

,

Can

of the
public debt. I
hope you will

Caribbean Sugar
S.

Edward A. Purcell & Co.

Asserting That the Initiative in Foreign Trade Must Come From Business
Rather Thau Government, Mr. Swingle Holds That There Is Ground

pects

Byrndun Corporation
I 'i
Common
'

"

of

Forge & Socket

W. L. Maxson

theatres of war> As

business that was

By WILLIAM S.

I

broader

A.

most

in the African

European

Vice-President, National Foreign

to

like

some

■4-

:

spent

years

representative,

handle

it was suggested

The Foreign

jor portion of
my
time on

1-1548

_

4

Pearsall

Forging

Unspecified

American

—

view";

spend

Telephone COrtlandt 7-4070

me,

-—■

the

would

York 5

31 Na##au Street, New

Exchange,

syndicate managed and foreign
representative.

foreign

•

Metro West Side El 4s

Noel & Co., 52 Wall

and European

branch offices

Buffalo Bolt

Standard

as

long-range point of view,

range

-

because

York Curb Exchange

0

-

he

included

point of
Members New

McDougall kindly sent

am

that

glad

Y. Curb Exchange

N.

r:

Street, New York City, members

Major

ottr

National G & E

v

Army

tech¬

too

nical.

3/6s, 1956

•Traded on

letter which Mr.

a

and that I not
be

■'

Direct wires to

has rejoined

of the New York Stock

that I talk about Government bonds from a

7s, 1952-1957

•

the

Van Alstyne,

the last SV2

NY 1-1557

New Orleans, La.-Birmingham, Ala.

Pearsall, on

B.

from

service,

inactive

>

St., New York 4, N. Y.

t

Power Securities

<

*

■

Noel Co^

Predicts That Commercial Bank Holdings of
Debt Will Increase and That Earnings From This Source May Lead to
Adverse Political Action.
Looks For No Change in Bond Interest and a
Continuation of Low Short-Term Rates to Avoid "Political Vulnerability
of the Banking Situation." Directs Attention to Large Volume of Liquid
Assets as Inflation Potential and Sees Possibility of Qualitative Credit
Control Which May Mean Further Encroachment by Government on
Banking and a Danger to Capitalism.

Stock Exchange
5

■:J:

<1 Members New York Stock Exchange

Rejoins

Investment

120 Broadway, N. Y.
WOrth 2-4230

•' r'tl

Steiner, Rouse & Co.

prior to being retired

Air Forces
to

Glass

Teletype N. Y.

Request
•,

>

"Political Dynamite."

Members Baltimore

leave

terminal

•/

Corporation

Vice-President of the First Boston

Preferred

&

Common

LANSTON*

AUBREY G.

By

Mayflower Hotel

Bell

Quoted

2-7815

G. B. Pearsall

Long Range View

Kearney & Trecker
Kendall Co.

on

V

25 Broad

The Public Debt-

H. C. Bohack
& Preferred

Mississippi

•

HAnover 2-0700

Common

&

REctor

Tel.

-

YORK

120 BROADWAY. NEW

Teletype NY 1-672

Telephone BArclay 7-0100

>•

NY 1-423

BEX.L TELETYPE

Common

New York Stock Exchange
Nets York Curb Exchange-

,

NEW YORK 6, N. Y.

115 BROADWAY

HA 2-2772

Exchange PI., N.Y. 5

t

—

'Members

and Other PrinCiped Exchanges

Members N, Y. Stock Exchange

Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers, Inc.

Analysis

pONNELL & Co.

Goodbody & Co.

•

New York

40

Bought — Sold

Bought^Sold^Quoted

Canadian Securities Dep't.

king & king
*■

i CO., INC.

Rights

CANADIAN UTILITIES

'fidential.

P. R. MALLORY

Stock

CANADIAN MINES

salary

Good

'

Guaranty

CANADIAN BANKS '

fered

with contact#.

'share in

Home Title

U, S. FUNDS for

We Maintain Active Markets in

Two Traders

Thursdays September 27, 1945

FINANCIAL CHRONICLE

Common

G. A. Saxion & Co.. Inc.

*Circular

110 PINl ST., N. Y. S WHitehall 4-4970 I




Upon

•

.

Simons, Linburn & Co.
Members New York Stock Exchange

St., New York 4, N. Y.

HAnover 2-0500

Power Co.

Industrial

Bonds and Stocks

Common Stock
BOUGHT

—

SOLD

QUOTED

—

Request

Bought—Sold*—Quoted

25 Broad
Teletyne NY 1-609

Public Utility •

-

Virginia Water Service

Arkansas Missouri

Railroad

Bought—Sold—Quoted

Common
?

IN

Tele. NY 1-210

Troster,Curries Summers
Members N. Y.

74

Security Dealers Ass'n'

HA 2-2400

Trinity Place, N. Y. 6

Teletype NY 1-376-377

/

Private

Wires

Detroit

-

to

Buffalo

Pittsburgh

-

-

Cleveland

St. Louis

A

J-G-White & Company

onu

INCORPORATED

37 WALL STREET

•

NEW YORK 5

ESTABLISHED
Tel. HAnover 2-9300

1890
Tele. NY 1-1815

MEMBERS NEW

One

Wall

cVietf
YORK STOCK

Street,

New

EXCHANGE

York

5,

N.

Telephone BOwling Green 9-4800

Y.

.Volume 162

Number 4424

THE COMMERCIAL & FINANCIAL
CHRONICLE
The

a

COMMERCIAL

'

and

FINANCIAL CHRONICLE

Retail Dealers/ j

:

i'

j

;

I

Reg. U. S.

low-priced stock in the

Patent

Office

•

William B. Dana Company

;

We

interested in offerings of

are

Publishers

-

.

.

Industry

*

i

MICHIGAN

;•!

25 Park Place, New York 8

j

Herbert

T-\. ■7

'

STEEL

>

D.

Editor and Publisher

Report available

32

New

York

Security

Broadway

NEW YORK 4
•'

DIgby 4-8640

:

'<

; \

•»

•

(general

»
v

•

news and

..
.

"

a;

week

Thursday

tation

V:

Direct Wire Service

records,

""

-

!■

clearings,
Other

New

York—Chicago—St. Louis
Kansas City—Los Angeles

state

Offices:

Chicago

«

3,

and

111.

La

S.

(Telephone:

Reentered
25,

ruary

Salle

State

St.;

0613)}

York, N.
3, 1879.

Bond & Mtge. Guar. Co.

Y.,
•

-

for

Expanding World Trade.

and States Britain Will

,

the post office at New
under the Act of March
\
at

Cuba,

:

:

-a

..

nomic

$29.50

United

In

per

year;

Great

lems

St, N.Y. 5

Exchange

WHitehall 4-6330

Kpynes

and

himself

with

Assis¬

*

tant
o

f

Secretary
St ate,

William

NOTE—On account of the fluctuations
in 4;lie rate-of exchange-, reraittances for

L.

foreign subscriptions and advertisements
be

must

r

made

in

New

York

funds.

:

'

Clayton.

He '

empha-

iszed

!
—

I

that the

in

Halifax's broadcast follows:

v

y

•

' !'

-r

>

JL*

^

on Control of "Profit*," Com-i
Charges" Presents Numerous Al-I
.ternative Possibilities. Basis of Computation
Conjectured.
Problem of Small Business Involved/ Although Relaxed
Controls Are the Order of the Day, Securities Field Is
Being Further Regimented. On to Washington.

missions and Other

Lord

..77
nomic
.

radical

'

Halifax

-

serious

-

if

eco¬

situation, and. the need for

outside

New York 6, N.
HAnover 2-8970

back two weeks ago,

enough hap¬

pened while I was there to fill
ahy ordinary year—the change of
Government
in
England; I the
atomic

bomb

and

the

uncondi¬

j

Surprise,' that

.

themselves to the SEC and the NASD when the ultimate
effort is made—as it will be—to define "unreasonable

the securities industries

an

profit"

adherence to

•that definition.

We all know that in the

ordinary course of business,
^overhead is and musf be one of the determining factors in
the estimating of profit and unless due allowance is made for
this factor, the small dealer is bound to suffer intensely, j
,

We doubt whether the term "intense suffering" is ade¬

quate because any attempt to create uniform spreads with¬
out consideration of the cost of doing business, must result
in the extinction of a large number of the smaller dealers in
securities.

•

*

-

on

Request

should change
before the war

Bought—Sold—Quoted

wa6

over; and; shock, that Mr.
Winston Churchill, who had

j led

the nation

so

defeat to final

have

aid, he has not returned

been

incomparably fprom
victory, should not

chosen

(Continued

as

leader dur-

on page

J.F.Reilly&Co.
•

*

1457)

New

Members

-

\

York Security Dealers Assn.

HAnoVer

7

Bell

t

By PAUL B. WEST*
,

coming.

Haloid

going

are

to
be

very

Billings & Spencer

Bought

sold."

That's

to

agree

vice-pres¬

of

the

of

dustrial

cor-

poration

speaking.
"The selling

chal¬

said:

the

>

left

'Us

with

says.

stat.ed

at

.

Punta

Alegre Sugar

Eastern Sugar Asso.

;

Lea Fabrics

:

;

National Gas & Electric

DUNNE & CO.

"Production/ without aggres¬
selling, is as futile

*An address by

what

D.

E.

Teletype NY 1-84

supers-

as

sive and sound

.

is

This

System

said

Members New York Security Dealers Assn.

American
economy

Dealers Ass'%

WOrth 2-0300

coming closer to home,
may I restate what another —-;a
prominent research man — has

lenge that will
face

& La.m

York Security

And

services is the

great

New

Broadway

"Times."

and-

goods

o
170

the only instru¬
ment capable of keeping our fac¬
tories humming and our workers
employed. So reports a Washing¬
ton
dispatch in the New York

in¬

Sold

that the sudden ending

war

salesmanship

an

important

are

—

Est. 1926

Bell

Government economists

& Pfd.

Laclede-Christy Clay Prod.

port.

to

ident

outset of its latest re¬

it

Corp.

U. S. Sugar Com.

Mtmoers

the

They

have

C.

the
Paul

Mr. West before

Pittsburgh Advertising

Club,

Pittsburgh, Pa., Sept. 11, 1945.

B. West

(Continued

j

on page

; »

25

Broad

St., New York 4, N. Y.

WHitehall 3-0272—Teletype NY 1-956
;

;

Private Wire to Boston

}

1470)

The

attempt to regulate salesmen's and traders' spreads
to be another boomerang. There will be two
classes of salesmen and traders—those who are employed
will

PANAMA COCA-COLA

prove

V

Tby member firms of NASD, and,those who are not. The
iormer class; of course, will have to register with the NASD

,1945

7

compulsion unless by? some form of gregarious interpreta¬
the

Quarterly dividend paid July 16, 1945

—

Public National Bank;
$.50

'

& Trust Co.

DIVIDENDS:

.and be under control., As to the latter, there will be no such

tion

(to date) $1.75

—

1944 $2.75

—

National Radiator Co.

1943 $4.50

Approximate sellfng price—31

SEC attempts to impose upon all salesmen and

Analyses available
to dealers

New Analysis on request

only

traders, whether registrants or not, the edicts of the NASD.

Hon Rose STrqster

Otherwise, the securities industry may witness the anom¬

spreads and commissions, one for
salesmen and traders who are registrants, and another for

alous condition of varying
those who are not.

(Continued




on page

1477)

f

Bartgis Bros.

"Anyone who thinks that $140 billion worth of goods and services
to be bought in this country* after the war has

per year are going
another think

It's

'

TRADING MARKETS

Knowledge of Economics and Tells of Plan to Continue Work of War
Advertising Council.

of

j:

'

Chicago & Los Angeles

President, Association of National Advertisers

Stressing That It Is theJ Task of Advertisers to Maintain and Increase
the Growing Confidence of the People in American
Industry, Mr. West

the

2-4785

System Teletype, NV 1-2480

Private Wires to

,

fixing a "reasonable profit" what consideration will
foe given to the overhead of each individual member firm?
THow far will the position that a dealer has taken in a par¬
ticular security affect the formula? What attention will be
.given to the duration of that position?
\v.«. {_
These are but a few of the problems that will present

*

.

Prospectus

The Faith That Makes Sales

quotations circulated by the NASD?
In

^

;

we

government

our

CORPORATION

ing with "Safeguards Against Unreasonable Profits, Unrea¬ Maintains That Advertising Must Be Unified With Public
Relations, and
sonable Commissions, and Other Charges," presents some
Industry Must Be Public-Relations Minded. He advocates as Means of
intriguing possibilities.
Inspiring Public Confidence by Individual Concerns: (1) An Under¬
Upon what base will prices be fixed? Will it be upon standing of Its Own Contribution to Public Welfare; and
(2) Demon¬
*the bid side of the market or upon the offering side? As to
strations of Its Concern for Public Welfare.
Sees Need of Spreading
over-the-counter securities, will the National Quotation
.Sheets be used as a foundation or is it the intention to use

Y.

Teletype NY 1-1203

40 Exch. PL, New York 5, N.Y.

By-Law Amendment which authorizes the

.Board of Governors of the National Association of Securities
-Dealers to submit to the member firms proposed rules deal¬

and to force upon

t

39 Broadway

nf -a shock to many people here.

change
of
policy
in
England, and,

NASD By-Law Amendment

the

S CO.

,

iMembers New York Security Dealers Astn.

Although I only went to Eng¬
land at the end of July and came

Party

no

-By HENRY NORTON '

The recent

QUOTED

-

LJ. GOLDWATER

tional surrender of Japan.
j ;
'I fancy the result of the elec¬
tion was a surprise and somewhat

Labor

'

"

Complete Statistical Information

United States "with hat in
as a suppliant. *
The
complete
text
of
Lord

of

of

parley

Lord

Quotation Record—Mth..$25 yr.
Monthly Earnings Record-tMth.. .$25 yr.

:

;

f

.

hand"

yictory meant

BeU Teletype NY 1-2033

SOLD

-

r'

to the

the

the

Bank and

Newburger, Loeb & Co.

prob¬
and

purpose

Britain,

Other Publications

(>1,

BOUGHT

Denies He Comes "With Hat in Hand"

Speaking over the Columbia Broadcasting System on Sept. 22, the
Halifax, British Ambassador to the United States, described
Jy: f /'v .'1 v ■ ■
Britain's eco- 4
*
■
■—-

Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

Prudence Co.

Members New York Stock

+

.

N. Y. Title & Mtge. Co.

-

YORK

CERTIFICATES

Accept No Obligation Which She Cannot Honor.

Earl of

States and
Possessions, $26.00 per year; in Dominion
of
Canada, $27.50 per year; South and
Central
America, Spain,. Mexico,
and

Lawyers Title & Guar. Co.

"!

i

STREET, NEW

.

Subscriptions

Lawyers Mortgage Co.

i 40 Watt

?

TITLE COMPANY

Country's
Desperate. Sees Alternative
Sterling Area or Agreement With U. S.

of British Isolation Within the

C., Exig-j'

second-class matter Feb¬

as

1942,

for bids.

us
,

WALL

99

Call

.

' v

British Ambassador. Broadcasts Information
Regarding His
Economic Plight, but Says Situation Is Not

Company

CERTIFICATES

v

t!

Copyright-1945 by: William B. Dan*

TITLE COMPANY

V

.

.

:

"No Hal in Hand": Halifax

banking>

1 Drapers' Gardens, London, E.
land, c/o Edwards & Smith.
'

::

*

city news, etc.)

135

Teletype NY 1-5

Haven

a

Missing Cou¬

Telephone WHitehall 4-6551

'

corporation,

pons."
,

t-/.\

,

conducting

are

for "Bonds with

j

Monday

(complete statistical issue—market quo-i

Teletype CO 129

2-4300

Members New York Stock Exchange

-ifr

We

& Co.

Broad Street, New York

J..... 25

Telephone HAnover

^

advertising issue)

and every

v

Harrison 2075

twice

every

i

Ah'd

CHICAGO 4

Teletype NY 1-832. 834
,

Dealers

s

Published

Board of Trade BIdg.

Spencer Trask

i

Thursday, September 27, 1945

i

STRAUSS BROS.
Membra

<

William D. Riggs, Business Manager

request

on

>

BOND CLUB

f

.

•

MISSING COUPON

PREFERRED STOCKS

Seibert,

William Dana Seibert,'President:

CASTING

AND COMPANY

Public Utility and Industrial

;

REctor 2-9570 to 9576

'

llCHTEDSTEIII

"

High Grade

'

Automobile

1451

Established 1914
7

74

C. E. Unterberg&Co.
Members N.

61

Trinity Place, New York 6, N. Y.

Telephone: BOwiing Green 9-7400

Y. Security Dealers Ass'n

»

Teletype: NY 1-375

Broadway, New York 6, N. Y.

Telephone BOwiing Green 9-3565
Teletype NY 1-1666

& FINANCIAL CHRONICLE

THE COMMERCIAL

1452

Thursday, September 27, 1945

BOSTON

Greater N. Y. Industries

esT.

THE LE ROI COMPANY

YW0

im: :

Sheraton

Mi'//'.

in-

Taxes and

Year Ended

Net Income

Federal

Profit before

'•

& State

i

After

Share

Taxes

$15,217,868

$1,936,443

$1,453,100*

$483,343

24,892,545

3,489,206

2,599,268*

889,938** 4.91***

1943

21,754,819

4,410,655'

'3,235,870*

1,174,785** 4.21***

1942

■'■-'■M: vM 10,403,560

Hardware*
*
Com. & Pfd.*
Armstrong Rubber, Com. & Pfd. t
Automatic Instru., Com. & Pfd.
American

.

Am. Win. Glass,

|

'

,

Circular

$4.02

Established

Members N.
REctor
B-1J

We

post war refund of excess profits tax in 1944.
deducting $321,880 post war refund of excess profits tax in 1943.
deducting $ 10,620 post war refund of excess profits tax in 1942.

♦After deducting $273,695
♦After

•

'After

I

"Before
"Before

Assets

Current

Net

Buda Co.*
Du Mont Lab. "A"

$17.62

Per

.

I

Book

Value $29

Per

du

request

on

Underwriters and Distributors of

Pfd. /

Bendix Home

National Stamping Co.

Pont, Homsey Co.
BOSTON 9,

Building
Reports furnished %on request

MASS.

Teletype BS 424

Capitol 4330

Investment Securities

Mercier, McDowell

New York 5

70 Pine Street

Appl.

& Dolphyn

Teletype NY 1-2425

Hanover 2-7793

AHEADI

BUILDING

Members Detroit Stock Exchange

Liberty Aircraft
Oxford

Buhl

New England

Paper*

Polaroid

New

-

COMMON

interest

6

SIMPLEX PAPER

months ending June 30, 1945 over 4

6%.

CORP.

Yield at current market
Descriptive Circular

on

Request

about

Seligman, Lu bet kin & Co.

Lamson & Session

-

.

Members New

Cement*

Copimon Stock

Full 6% Earned

and Paid 1944

Report Furnished

*

York

We maintain

Security Dealers Association

trading market

a

in these bonds

white, noble & co.

HAnover 2-2100
84

Members Detroit Stock Exchange

si

86

-

Memorandum

GRAND RAPIDS 2, MICH.

Phone 94336

request

on

Reconversion of Automobile

Asphalt

Request

on

t~

Incorporated

Broad Street, New York 4

41

Maguire Industries
Majestic Radio & Tel.
Marathon Paper
Mastic

for

available

Earnings

Great Amer. Industries

Mfg.
Howell Elec* Motors
International Detrola

Tele. DE 507

grand rapids

Times Interest Requirements at

COMMON

Haskelite

Lawrence Port.

Lime Co.

Bonds Outstanding $539,950

FOUNDATION CO.
General Machinery

BldgDetroit 26

Cadillac 5752

3-6% due 1966

ARIZONA EDISON CO.

Kaiser-Frazert

1-714

General Industries Co.

Share

FIRST COLONY CORPORATION
&

System Teletype N. Y.

Maintain

Shawmut Bank

Com.

j

Broadway

<

Share.

Complete analysis

American Bantam Car

2-4500—120

DETROIT

Approximate Market 26

Electrolux*

1908

Security Dealers Assn.

SHERATON

provision for contingencies of $500,000 in 1943.

provision for contingencies.

Y.

Active Market in

an

provision for contingencies of $300,000 in 1944.

♦"After

Brockway Motors

Buckeye Steel Castings*

'

JiKJUce,Jr.&Co

request

on

4.13

495,203

1,277,417*

1,772,620

.

'}'<£{'■ ■'US-ill?'

'*

Irving Trust Co.

Realty
Corporation J

Per

'

Inc. Taxes

1944

' '

o'v

*

Franklin Fire Ins. Co.

General

Earned

Contingencies

1945 (36 Wks.)

'

Kingan & Company

V8

Net Sales

Sept. 30

INDUSTRIALS

\

'v

Corporation

important manufacturer of portable ah-compressors,
•v?stationary gas and gasoline engines,
and engine-driven generator sets

An

V *'
'

Tele. GR 184

Detroit Office,

Buhl Bldg.

Merck Co.

Michigan Chemical*

Industry at Crossroads

Moxie Co.
H. K. Porter,
Punta

By GEORGE W. ROMNEY*
General

Purolator*

*'*

Sheraton

Corp.
Standard Forgingst
Stromberg Carlson
Taca Airways*

Says Prices of; New Cars
Unpredictable and Denies Industry Seeks to Destroy the Labor
Unions. ' Holds Wage Demands Should Be Settled by Individual Com¬
Are

Travis Jefferson

Triumph Industries
Wickwire-Spencer
Winters & Crampton

panies' and Decries Organizations of Workers
We

war

novfr

are

during the
•

war.

made

"Boss"

Alabama Mills*

said,-

Spinning

"There

be

people are be¬
ing led to expectiso much."

Textron Warrants

me

Actual

American Gas & Power

of

Cons. Elec. & Gas Pfd.

An

complic

New England Pub. Serv.,

which

fProspectus Upon Request

e

d

never

invented

shower bath

his

Ward&CO.
EST

1926

chose

a

up
man

120

Dealers Assn.

or

He set this elaborate
on; the
stage and
from the audience

to try it.
Joe turned on the water
and
the
man
was
promptly
soaked.

Members N. Y. Security

that, according to

take baths without undressing

machine

Joe.

He

But

that, didn't

examined

the

baffle
valves

BROADWAY, HEW YORK S

REctor 2-8700
Direct

NY }:S

Wires to Chicago and Phila.
'PHONES

ENTERPRISE

Hartf'd 6111

Buff. 6024

Bos. 2100




states

the

*An address by Mr. Romney be¬
the General Session of the

fore

Industrial

Conference

Board, New York City, Sept. 20,
1945.

Giant Portland

this

and

does

sell parts of parts,

materials,nuts

not

number

*Riverside Cement
Members St.

bolts

Z;"•

semblies.;"
assure

you

that

I

approach

this assignment with no intent to

industry spokesman.
This is impossible since the motor
vehicle companies alone converted
to produce more than 3,000
sepa¬
rate war products.
No two com¬
panies' war production was the
as

an

Exchange

♦Circular Available

in

tion
I'm

LERNER 8: CO.
10

OFFICE SQUARE
9, MASS.

POST

Tel. HUB

and

consequently

them

has

identical

none

of

reconversion

problems.
Reconversion

is

problem for every
automotive

a

>

had

a

separate

automobile and

company.-

quently, I've decided to
the capacity of a reporter
ringside

seat

to

industry.

sort of reporter, how¬

because I «m going to ask
and answer them.

However* I'll try to be objective
by asking myself the hottest cur¬
rent

same

automotive

the

queer

the. questions

Teletype BS 69

1990

a

ever,
v

BOSTON

and
Y

;,v

Louis Stock

^Consolidated Cement "A"

which

other, essentials used in parts as¬
I

ST.LOUIS l,M6e

*Central Iron & Steel

include

semi-fabricated
and

>

STREET

OLIVE

Cement

*Kingan & Co.

are

incalculable

SECURITIES

MARKETS
509

approximately 4,000
separate ~ plants
located
in
32
process

pose

National

Springfield

INVESTMENT
TRADING

are
200 special .automotive
tool and die companies.
Involved
in
this automotive reconversion

Romney

^)lans, would enable people to

getting wet.

INC.

on

there
George

a

LOUIS

Stix & Co.

2,000 regular parts sup¬
pliers.
Some
parts companies,
incidentally, are larger than many
motor vehicle companies.
Then,

accomplish e d
anything. Joe
a

Circular upon request

t

a

464

LIBerty 2340

Providence

least

at

TELETYPE SU

Street, Boston 10, Mass.

Tel.

Portland

truck and bus manufacturers and

inventions

Com.
Northern New England Co.
Northwest Utility, Pfd.
Puget Sound Pow. & Lt., Com.

ST.

F. L. PUTNAM & CO.,

this subject
particular
reconversion problems of 10 pas¬
senger car companies, 60 taxicab,
authority

SYSTEM

Inactive Securities

would have to know the

and

Iowa Southern Util.

im¬

v

Utah

Industrials-^-Utilities

problems exceed those of any
other industry.

Joe

elaborate

BELL

1,

Oldest Investment House in Utah

Bank and Insurance Stocks

its

f

Cook gag. You
remember his

Conn. Lt. & Pr.

no

Salt Lake City

Secondary Distributions"

77 Franklin

con¬

a

is

There

discuss.

portant aspect of national recon¬
version which doesn't directly af¬
fect automotive reconversion and

ditions remind
me

to

established.! 899

160 s. Main Street

J

the

magnitude of the subject he asked

«

because

then

Nationwide Basis.

I doubt Dr. Jordan realized

lot

a

on a

EDWARD L. BURTON

England Coverage

■;

carefully and said: "I must have
overestimated my ability."

by

confusion

of

Consolidated Textile

or

Preferreds

& COMPANY
Retail New

<3>-

Ket¬

■

will

Aspinook Corp.

Bulletin

2-5035

New England Markets

period we talked so much about
One of the most significant predictions about post¬

tering when he

*

Utah Power & Light

Telephone

York

Rector

Portland, Me., Enterprise 7018

in the post-war

conditions

was

Berkshire Fine

New

IN

,

Tele. BS 596

diate Demand for 18 Million Passenger Cars.

Taylor Wharton Ir. & St., Com.

I

Private

WE SPECIALIZE

MASS.

10,

Tel. Liberty 6190

Asserting That the Automotive Industry Has Been Working Out Re¬
conversion Plans for Two Years, Mr. Romney Predicts That Except for
Strikes, New Cars Should Be in Dealers' Hands by December. Points
Out Serious Reconversion Difficulties in the Industry and Sees Imme¬

Setay Co.

I

BOSTON

Automobile Manufacturers Association

Manager,

STREET

FEDERAL

75

Com.

Alegre Sugar

SALT LAKE CITY

Dayton Haigney & Co.

Conse¬

talk in
who has
observe

public questions about auto¬

motive reconversion.

5

Until the last few days, the first

and

most

tion

was:

"When
"

Not

have

Can We
as

if

frequently asked

Get New

early

the

as

you

government

(Continued

on

ques¬

Cars?"

should
had ac-

page 1481)

Volume 162

Number 4424

THE COMMERCIAL &

FINANCIAL CHRONICLE

1453

Direct Private Wire Service
*

coast-to
Chicago

•

St. Louis

•

Kansas City

-

"

,-K

>

New York

'

coast

-

Los Angeles

-

-i

.

-

Bank of Montreal

w

,

Canadian Bk. of Commerce

"Dealer's Choice"

STRAUSS BROS.

Royal Bank of Canada

Members New York Security Dealers Ass'n
32

Broadway

NEW

YORK

r

DIgby 4-8640
Teletype NY 1-832-834

Andian National

Board of Trade Bldg.

'

4

CHICAGO

Harrison

Teletype

/

4

Many dealers choose

■4

Assoc. Tel. & Tel.

help thepajjnd that elusive

us to

2075

CG

security they need to close

129

deal. If

a

don't have the

we

Corp.

6% & 7% Pfd.

Brown Company Com. & Pfd.

secu¬

Canadian Pacific
White & Company
ST.

rity ourselves,

Baum, Bernheimer Co.

LOUIS

CITY

KANSAS

continual, wide contacts often help us keep

our

track of where it

can

be found. Much of

our

Electrolux

business is done

Pledger & Company, Inc.
with other

LOS ANGELES

tions

Rwy.

Canadian Western Lumber

Hydro Elec. Securities Com.
dealers, and

we

have always found such transac¬

mutually profitable. ■%

Internat'l Holdings, Ltd.

Internat'l Milling, Pfd.

L

;

International Utilities
Community Water Service 5 Ye
Crescent

Public

East Coast
Eastern

Service 6s

Public

Service

Minnesota

Pr.

;

Why not let

immediate,

you want

to-the-minute, usable facts? Next time

1948

1951

s

by letter, 'phone

on us

Minneapolis & St. Louis Ry. Issues
Securities Co. of N. Y. 4%

if

us serve you too,

Minnesota & Ontario

up-

^

1954

4s

5 Yt

L

1946

s

or

we can

help

you,

call

St. Regis Paper

Consols

HART SMITH & CO,

-

52

/

■;

.

R. W.

HAnover 2-0SM

Teletype NY 1-395

New York

Ohio Match Co.

■

St„ N. Y. 5

Bell

FREDERIC H. HATCH & CO.
'

.

WILLIAM

Sugar Associates, Common

-

Pfd.

Sun Life Assurance

teletype.

American Cyanamid Preferred

Eastern

Paper Co.

Noranda Mines

Montreal

Toronto

Pressprich 8C Co.

Incorporated

MEMBERS N. Y. SECURITY DEALERS ASSOCIATION
Wall

Street, New York 5, N. Y.

'

Bell Teletype NY

1-897

Telephone HAnpver 2-"i700
•

NEW YORK 5 *
201

State Bank of Albany

Devonshire Street, BOSTON 10

Members New York Stock

Securities

GOVERNMENT,

Albany

PUBLIC

AND
MICHAEL HEANEY,

WALTER

INC.
Established
52

William

St., New

WHitehall 4-3990

COMMON

BONDS

INDUSTRIAL

STOCKS

INVESTMENT

National

Mgr.
A';

KANE, Asst. Mgr.
¥

George R. Cooley&Co.

{y

Exchange

MUNICIPAL, RAILROAD,,

UTILITY,'

Common

San Carlos

1-J&3

L<?.: '£

Curb and Unlisted

Schenectady Trust Co.
First Trust of

Teletype NY

'■

63

68 William Street

A;.:'.

>■;

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Joseph McManus & Co.

COMMON

Members New York Curb Exchange

J924

Chicago Stock Exchange
York

5,

N.

Y.

39 Broadway
Digby 4-3122

Teletype NY 1-2419

New York 6
Teletype NY 1-1610

"Without

Help Britain

J;

91 A'

qAllen & Company

Must Be Socialist"

By DONALD B. WOODWARD*
Research Assistant to the President
Mutual Life Insurance Company of New York

By

SIR

NORMAN

Labor

Member

Telephone:

British Publicist and Nobel Prize Winner, Commenting

Last British

on

Election, Points Out That a Majority of Votes Was Not Gained by
Victorious Labor Party, and That the Crucial Issue Will Be Not
Whether Socialism or Capitalism Should Prevail, hut Whether There'll
Be "Foreign Help Today and Foreign Trade Tomorrow."
Asserts
the Reconstitution of the Role of Interest or the Creation of a Substitute Without Foreign Trade, Britain Will Be Driven to Socialism to Equitably
Technique. Points to the Task of Reconciling the Public Debt and the Divide an Inadequate Food Supply and Because of Dependence on the
Money Economy and Holds That Money and the Public Debt Are Now Empire "Bevin Follows Closely His Predecessor's Policy." Stresses
Power of British Trades Unions During War and Sees No Conflict Be¬
Practically Identical.
tween British Socialism With Nations Having Capitalist Organization.
I.
Any misconceptions which

exist about

may

my

viewpoint should

be cleared away at once so that they will not encumber our subse-

discus¬

quent
sion.
not

of

I

shall

a

tional

ing.
not

ing
the

lic

to

not

owe

out
debt

a

dirge
a

to

pointed
our

lives."

thirteenth
material

a

by

The

many.

power

to determine

The

BIS

annual

welfare

report:
need

live

we

said

in

its

"Man's

be

held

the

of

econo

m

i

Labor Government

was

possibility in the electoral offing

of despair that this

daemonic

destroyer of
The pub¬

all hope for the future.

lic debt is simply

Brobdingnagian.

 is simply
Most of all, it


a

fact.

Los

&

1-573

Angeles

WE BUY

bonds
Vv.Si'

V;y:

:

WITH

-

Coupons Missing
GUDE, WlNMILL & CO.
Members New York Stock Exchange

1 Wall St., New
DIgby 4-7000

York 5, N. Y.
Teletype NY 1-956

*

the Conservatives made both

Position

planned by the
Party

Labor

have

would

been

t h

o' u

real

brought
nor

about,
g

scribed

even

h

to

de¬

under

ferent

in

nature's

als."

nor

gift

by

insufficiency

of basic

materi¬

T. G. MacGowan, Firestone

*An address by Mr. Woodward
before the Financial Analysts of

Philadelphia, Sept. 21, 1945.
(Continued on page 1474)

even

Labor

Party

understand

if

the

H. K.

the

position of the Labor Party,
the motives which

are

Bought—-Sold—Quoted

likely

guide, in part at least, its policy

unless we take into account a fact

about the election which seems to
\

■

„

S;r Norman Anse"

had been returned to office. Much
of the socialization which Britain

had undergone this last

quarter of

century had been brought about

under

the

never

names,

Conservativ e s

a

of

We shall

somewhat dif¬

V

.

to

a

c

knowledge
Donald B. Woodward

1-1017-18

changes

back neither by lack of technical

And I.

is

That other fact has

our

our- '

Wire

Direct

political virtue and a political
advantage of impending necessity.

surroundings amid which

w e

shall not dole

under-

been

a

and

be within

matter

selves.

because

in

Most

for ourselves the nature of all the

does

it to

very

part

emphasized.

Brobdingnagian debt as
fact—and, in my opinion, with

CIO said recently: "It will shortly

with

because

world

been

somno¬

debt

post-war

another fact

argument
the pub¬

that

this

enter

.

no

with that

sooth¬

lence

bringing them about: the Conserv¬
atives introduced them precisely

historians, arid
of
right or
to the moralists.

mean

has had

a

y o u

-

a

real vic¬
tory for
de¬
mocracy
has

the

determination

We

shall

seek

seduce

into

Party

wrong

bless¬

I

NY

Teletypes:

the

does

Labor

to

not

that

Which

na¬

a

The significance of the British election as marking a revolution¬
economic transformation has been exaggerated and over-empha¬

significance as
constituting #a

us

the

public
is

ary

wherefore

praise that

debt

S

;

proceed from' there, leav*
ing the determination of why and

paean

the

»

Y.

HAnover 2-2600

sized, while its

Let

for

pour

you

**>■

YORK 4, N.

Parliament

of

Wealth Production Are Realized

Problem, Mr. Woodward
(1) Increased Use of
Automatic Machinery and Division of
Labor; and (2) the Preservation
of Institutions and
Techniques of a Sound Money Economy. Stresses
the Importance of Interest Rates and States That the Problem Is Either

STREET

ANGELL*

Essentials of Future "Plenty":

as

BROAD

NEW

and Therefore -the National Debt Will Be No

Lays Down

Established 1922

„

30

Former

Assuming That Predictions of Increased

a

Conservative

governments.

.♦Excerpts

from

an

address by
dinner-

Sir Norman Angell at the
forum

the

of

New

associate

School

of

members

Social

of
Re¬

search, New York City, Sept. 25,
1945

Reed, Lear & Co.
Members

Pittsburgh Stock Exchange

Grant Bldg.

Pittsburgh 19, Pa.
Tele.

PG

(Continued on page 1484)

52 William St.
New York 5, N. Y.
Tele. NY 1-1420

482

Private

,

HAnover 2-2823

Atlantic 0881

Wire

between

Offices

'

THE

*454

Thursday, September 27, 1945

COMMERCIAL & FINANCIAL CHRONICLE

Delaware Power & Light

Propulsion-How High-How Fast?

Jet

cusses

Jet

Aircraft

Industry.

While
has

prepared

.Common

Jet Propulsion is the

been made to evaluate

—

—

QUOTED

:Q;

Schwabacher & Co.

ESTABLISHED 1879

:

Members

-

copy may

be obtained on written request.

Curb Exchange

York

New

Chicago Board of

New York 5, N. Y.

14 Wall Street

Public Utility

Reynolds & Co.
Members New York

Stock Exchange

Securities

Teletype NY 1-928

COrtlandt 7-4150
Private
San

Southern Common

The Case for Commonwealth &

N.Y.

Broadway, New York,

120

Exchanged
(Associate)
Trade

York Stock

New

A

Executed on

Pacific Coast Exchanges

Paine, Webber, Jackson & Curtis

■

.

^

j

SOLD

Orders

main theme, an attempt
the potential peacetime

airplane manufacturers.

volume of

Common

BOUGHT

7>

<

v

Securities

Public Service of Indiana

an

,

Pacific Coast

Federal Water & Gas

illustrated booklet which dis¬
Propulsion and its probable effect on the

We have

V;r

Common

,

to Principal Offices

Wires

Francisco

Monterey

—

—

Santa Barbara

Oakland

—

Sacrament*

Fresno

Philadelphia is counsel for the new commit¬
tee of' common stockholders' of Commonwealth & Southern.
In a
recent talk before the New York Society of Security Analysts he
cited his reasons for demanding a change in the SEC-approved
recap plan.
The original plan called for a 80-20% split in the new
common stock between preferred and common stockholders. Due to
the protest of important institu-0
'
—1
" v1^'.1...——
tional holders of preferred §tock 1932 was cut to $5, which is still
this was changed to 85-15%, and maintained. The SEC proposes to
at that time the common stock¬ allow against this assets which it
By WALTER WHYTE
holders appeared to be dormant values at only 91 cents.
in defending their interests.
Commonwealth was formed in Market seems to be leveling
In
the
interim,
however,
general 1929 and today has revenues of
off
around
the
180
level!
Alfred J. Snyder of

Tomorrow's Markets

of $8 Billion in Incomes

Sees Drop

Says

For Last Half of Year
Secretary Wallace Summarizes

Commerce Department's Estimates

of

Manufacturers

Expects Continued Decline in

Effects of Reconversion.

Payrolls.
f

market

to a peace economy will re¬
drop of about $8 billion, or about 9%, in income payments

Reconversion from a war economy

sult in a

'

individuals

to

force

during the
second half of

generally over an abnormally
long work week.
pay¬

24

inflationary
pressure.
Some of the pressure will still be

by Secretary
Henry A. Wal¬

mediate

lace.

there, but that portion which re¬
mains will not be created by ris¬

The income

•payments
■reached

the

^highest

level

dn history—an

(annual rate of
approximate¬

ly $165 billion
Febru¬
XbliT A. Wa£!a»
ary.
Then
they began drifting downward,
and the average for the first half

1945 was $163 billion. The
present sharp decline began with
the surrender of Japan and the

ijof

accompanying heavy cancellation
military contracts, and is ex¬

of

rate

pected to reduce the annual

$148
billion. This will bring the year's
total to the 1944 level of income

for the second half of 1945 to

payments.
decline,"

Wallace

Mr.

reconversion, and in part the

easing
upon

tated

Share,

the latter.
Mr.

vgith the lowest.rates of any hold¬
ing company group in the coun¬

off of war-time pressure

the economy, which necessi¬

Court

.;

dered

common

war-time

tions of shares as low as

spending

drops,

and

In

highlights the problems which are
involved

in reconversion.

homes and schools into the labor

in

rise

income

(Continued

payments

on page

1463)

if

even

and

remits

and

The
plowing
back of earnings,
which would
normally have enriched the comhas

about

84%

of

duction

at

which

price

entire

con¬

cash

these

proportions. Orig¬

share contributed about $20 value

uncommitted

in

the

words

of

its

stockholders

mori

Mr.

the

a very

good profit."

output
pro¬

shrugged off. The Street was
no longer in need of excuses.
The market was up and every-

as

owners

strong,

long

Write

or

have

term, outlook. A

just been prepared by
ment.

our

call for

a

one. ■

A

philosophy, that strength
strength, is a human
a
comfortable one. Its

fosters

and

According to

estimates

Snyder the SEC

of future

earnings,

on

million dollars
Commonwealth's estimate of

recent rate of 212
and

can

lose

everything you ever

and the stock
the

books

at

thus carried

was

that

on

figure, but in

future 198 million dollars.

Commonwealth estimates of earn¬

ings : two years after the war
would work out at, $31,611,844,
though to be conservative,- the

;always greatest at a crest *

is

.

.

Company^ expert reduced this to
1
(Continued on page 1455)

the

or

approach to the crest.'

V

(Continued on page 1475)

maintain

active markets

Report

has

DELIVERIES
of

New

York,

.

.

.'

will be

Clearance

accepted at the Bank

Department,

street

Telephone Bond & Share

;

Telephone Bond & Share

[

'

*

Assoc. Tel.
TRADING DEPARTMENT

.

.

operating

as

&

Co.

Members N. Y. Security Dealers' Assn.

29




BROADWAY, NEW YORK 6, N. Y.
Direct

Wire

to

Chicago

A

;

-

"

& Tel. 7% Pfd.

usual

Gilbert J. Postley & Co.

New York 5, N. Y.

Pfd.

Class

level

Investment Research Depart¬

free copy.

Luckhurst
Exchange Place

in:

i

..

,

public appetite whetted by '

A

7%

excellent inter¬

Special

v

colloquial application "Never
bet against a champ" is wide¬
which the plan was based, were
ly quoted as a sound prac¬
far too low. The Commission as¬
tice.
Unfortunately it is as
sumed future revenues of 162
You
million dollars compared with the unrealistic as a dream.
:

DURING THE ELEVATOR STRIKE
an

.

will

accepted

Assoc. Tel. &

40

they

strong, became the

of

to the pre¬
ferred stockholders to the extent

the business, will go

ergo!

so

continue

President

ABOUT $3

and

re*

At its current price of

Trenton Valley appears to
mediate

were

the industrial averages man¬

We

"promises

The rally was

strikes

and

made, or have, by applying With
monwealth,
and
the,v preferred
that kind of reasoning to the
Federal income taxes at a straight
stockholders only 16%; the pro¬
40% rate (eliminating EPT) the market.
Market enthusiasm :
posed exchange ratio practically

Schenley Contract
for

through.

carried

been

future benefits, of all this

securities

reverses

Assures continuous full-time

broad refunding program

A

ital.

handles

stockholders

common

over

thing was going to be dandy.
pacity has been greatly expanded
philosophy of they're
without borrowing much new cap¬ The

16/10,000

cash.

Last week the market wasi

going to pot.

sponsible. That was the wide¬
bad position
spread •? belief. # But despite
is the rapid the then
prevailing pessimism

capital losses on sales of certain
properties^ but it has also built
up large reserves and surpluses in
the
subsidiaries, and plant ca¬

feels

also

sus¬

heavy» excess profits taxes. aged to move up from around
But despite the big tax burden, 173 and crossed 180.
Right
over a period of years 65% of net
away the strike scare dwin¬
earnings, (according to Mr. Sny¬
dled into nothingness and a
der) would have been sufficient
to pay the preferred dividends, new optimism took over. The
leaving 35% for common divi¬ fact that new and more seri¬
dends and surplus.
ous
labor disturbances were
Mr. Snyder admits that Com¬
in the immediate offing was
monwealth has written off huge

inally the holder of each common

contract

for the

they

with

pay

a

"A" Common

awarded

reason

1943

increase in Federal taxes—Com¬
monwealth and its subsidiaries

(at market value)
which originally went into Com¬

distillers

through March, 1947.

less than 60%.

The

that the pro¬
posed 85-15% ratio is entirely
unfair for the following reasons:
tributed

Just

but .in

of the common stock

receive frac¬

Commonwealth

sale

Snyder

The

trenton valley

85%

1933

in

and

old obstacle

viewed

be

not

leveling

picion.

and

(other than Federal taxes) con¬

However

around

process
must

reaction

nearby

though

indicated.

great as
fixed charges

as

costs

nearly
in 1930.

share, which will be a nuisance of 85%,
their

The

times

1930

is

consumers

ren¬

sumed 71% of gross revenues

Holders of small amounts of the
stock will

to

three

4

expenditures.
It also shows the
readjustments that take place as

from

workers

drawing

lows:

and the actual service

try,

Snyder

Circuit

compared with

141 million dollars in 1930.
The present revenues are obtained
only

were

appealed to the
of
Appeals
at
Philadelphia for a review of the
SEC ruling of June 30 approving
ing incomes; rather, it will grow
out of production problems, and the company's recap plan, but the
the way to relieve it will be three-judge court in a unanimous
decision refused a hearing and
through stimulating the required
Pre¬
production of consumer goods, stay in the proceedings.
sumably Mr. Snyder will have to
durable goods and housing.
await the regular hearing in the
"That means that the big prob¬
District
Court, when the SEC
lem today is to get production
takes the plan to that court for
started and to take care of the
confirmation.
It is rather un¬
aftermath of demobilizing soldiers
usual
to
by-pass
the
District
and war workers.
While the im¬
Court, as Mr. Snyder tried to do.
mediate curtailment of purchas¬
In the meanwhile, however, he
ing power will not be serious,
plans to carry his fight into the
prompt reconversion by business
special stockholders' meeting, and
and vigorous government action is
has applied for SEC permission
needed to prevent mounting de¬
to solicit proxifes in opposition to
flation and unemployment."
the plan (the date for the meet¬
The data developed in the re¬
ing has not yet been set).
Mr.
view give a clear picture of what
Snyder's arguments against the
happened. to the structure of plan may be summarized as fol¬
American income due to war-time

said, "represents in part the cost
of

resulting in the present
appeal by Mr. Snyder
(who, however, represents only
about 1% of the common stock).
The large corporate holders of
Commonwealth—Electric Bond &
ment,

militant

212 million dollars

•

!—last

f'This

side

,

view summar¬

i

their

have greatly
of the argu¬

conditions

favored

United Corp. and Amer¬
ican Superpower—which together
have a much bigger stake than
manufacturing industries. This
the Snyder group, have not joined
will not eliminate all of. the im¬
largely a decline in
the volume of wages paid in the
ments will be

Commerce re¬

Sept.

income

in

decline

"The

ing to a De¬
partment
o f

ized

labor's serv¬

utilizing

and

ices

accordr

1945,

Walter Whyte

Tel. 6% Pfd.

JAMES M. TOOLAN & CO.
67 Wall

Street, New York

Telephone HAnover 2-9335
Teletype NY 1-2630

,Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

^ Number 4424

*

PHILADELPHIA

Thermatomic Carbon Co.

Bausch & Lomb
*Gear

Grinding Machine

DIVIDEND

Buffalo Bolt
■

1936

—

*Memo

1937

—

$20.50

1938

1940

—

20.00
16.00

—

18.00

1942

request

on

—

16.00

1943

1945

BUCKLEY BROTHERS
1529 Walnut

Yield

Street, Philadelphia 2
Los Angeles

Pittsburgh, Pa.
N. Y.

1941

—

25. 00

1944

—

The Name of Our Company.

per

Hagerstown, Md.

Wire System

Will Be Changed From

MURDOCH, DEARTH & WHITE

annum

INCORPORATED

TO

V

^

1

t-.

Telephone—WHitehall 3-7253

Private

1, 1945

16. 00

request

on

OCTOBER

$10. 00

7%%

over

Circular

■

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—

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of $16

rate

current

at

Members New York, Philadelphia and
tLos Angeles Stock Exchanges

—

date

to

THAT *

TO ANNOUNCE

WISH

EFFECTIVE

RECORD

$12.50

1939

J'.

WE

STOCK

COMMON

McCRARY, DEARTH & CO.

between

Philadelphia, New York and Los Angeles

'

Established 1914

74

■;

.

,

• t;-

V v;

,

INCORPORATED

,

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

INVESTMENT BANKERS

Teletype: NY 1-375

I|es Moines 9, Iowa

1000 Des Moines Bldg.,

Missouri
Public Service
Common

-

'

American

:

W. L. Douglas Shoe Co.
:-V

An attractive

BOENNING & CO.
1606 Walnut

Private

possibilities.

St., Philadephia 3

Pennypacker 8200

Y.

N.

to

f

FRED M. LORENZ, Treasurer

**■;>':

Phone:

C.

ROBERT H. McCRARY, Vice President

;.

120 Broadway, New York
RE c tor 2-8700

PH 30

r

Phone

Secretary

with

company

outstanding

' '

President

THOMAS J. LANDSTORPER,

Pfd.

Management, Policy or Personnel

Represents No Change in

MICHAEL D. DEARTH,

Public Service
7%

This

Special Study Available

We

are

Tele. NY 1-2173 & 1-1288

pleased to announce that

COrtlandt 7-1202
Established

1926

Direct

Members

Wires

to

BOSTON

New

—

York

Security

HARTFORD

Dealers Association

PHILADELPHIA

—

Major gilbert b. pearsall

Dealer Inquiries Invited

has

American Box Board Co.

Franklin

Botany Worsted Mills pfd. & A
Empire Steel Corp.

com.

Pub.

Serv.

United Artists Theatre
Circuit

com.

ANALYSIS

ON

Byilesby & Company

PHILADELPHIA

New York

REQUEST

52

Successors

Stock Exchange Bldg. Phila. 2
Teletype PH 73

Established

Broadway, N. Y. 4

32

,

HAnover 2-8380

only

years,
about

which
50

would

cents

then
share

a

earnings for the common stock.
But under the plan the preferred
would get $15 a share (based on
the expert's estimate of earnings),

$10.15

according

to

the

SEC

figures, instead of the $6 to which
they would be entitled after ar¬
are paid.
In taking care of
-arrears under the plan, earnings
rears

on

the

We

as

stock

reduced

Housing Executive, Stating That There Never Has Been a
Backlog of Housing Demand, Stresses the Need by Private
Building to Make Ready for the Task of Early Action to Do the Bulk
of the Work.
Says There Is Still Need of Providing Low Cost Homes,

JOHN H.
Members New

and That All Factors Should Cooperate, to do the Job With Aid of
Government, None Claiming More Than Its Fair Share of Profit. Tells
of Plans of FHA to Assist in Movement and Expresses Confidence That
"the Big Job Will Be Done."
Never in

this country has there been a greater general

and

housing problems.

desires of

that need—nor

cents to less than 8 cents.

their

The modern trend
toward

of

use

to be

seems

se¬

Tjfhile Mr. Snyder

does not suggest it, it would seem
a

logical possibility for * Common¬

wealth

to

rights)

as

sell

retire

issuance

might be

as

the

of

of its Northern

many

subsidiaries
to

(by

necessary

preferred

•Then the. balance of

holdings in

pro

rata

to

the

stock¬

holders, meeting geographical
quirements
company

of

Section

would then

re¬

The

11.

continue to

hold the Southern group of com¬

panies
mon

the

as

in the plan, with

stockholders

equity; in

practical
necessary,

thus

that

matter,
if the

com¬

retaining

As

group.

a

it
might
be
rights method

used, first to reduce the

wieldly number of

common

un-

shares

by a 1-10 "reverse split,'! as Cities
Service did

some

years




ago.

:

in

there

force

its

and

vate

as

the

factor
better

:

As

a

ever y

in

Raymond M. Foley

where,

and

in the small towns
villages, and beyond into the
areas.

Never

the

when
sented

doing

has

a

a

human

there

opening

been

: a

time

future

pre¬

greater opportunity

for

vast constructive job for
betterment

in

meeting

its

Address delivered by

Mr. Foley

.

.

,

*

and

opportunities

in

housing as I saw them.
I can do
no other now or hereafter.
The

Post-War Housing Market

The

size

of

the

post-war new

market has been vari¬
estimated.
The smallest
estimates are
large.
A million

housing
ously

houses
From

a

is a common one.
Government's stand¬

year

the

and

point there is no underestimating
the importance of the place of

Sept. 12, 1945.

homes in the economic picture

before

Financial Chronicle, 25 Park

a

committee

of

Financial

Building Interests, Hotel Wal¬
dorf-Astoria,
New
York * City,

building

and

Request

F. BLEIBTREU & Co.,
79 Wall St., New

Inc.

York 5, N. Y:

Telephone HAnover 2-8681

Place, New York 8

improvement

of
of

The President's mes¬

the future.

estimate
fact

the

the Congress placed

to

sage

dollars

have

duties

on

,

to help

designed

of work in local
always; spoken
to private enterprise of

frankly

Commercial and

Box SS 920,

commissioned

years

I

fields,

It is

the cities,

rural

.

10

In

log of housing
demand.

Government

today.

back¬

greater

Circulars

Reorganizations

head of an agency

be national

improve the housing situation in
America, through individual in¬
itiative, I come to speak to you

has

been

recently

one

.; -

Mining

Mindanao Mother Lode Mining

Holding Company

peace

now

of

be¬

-

Never

there

ex¬

War emphasized

enterprise.
need;*

to

today
ever

fore.

generally

more

a

are

under¬

stood

than

has

accentuates
that opportunity and challenge.

economic

an

been

recent years

Benguet

San Mauricio Gold Mines

Public Utility

ing task of this nation is one to
be done for the most part by pri¬

social

production

in

never

y,-. ,y:

pressed agreement that the hous¬

housing
a

*

was

And

minds,

but

stock;

the Northern group could be dis¬
tributed

keenly

as

rights to retire

nior securities.

homes

better

Association

NEW YORK

Specializing

greater danger

a

^

Consolidated

in failure to meet it well.

for

VALENTINE CO.

Analyst Available

public

Not only are the personal needs

dividuals

c

September 24, 1945

lb-

expert's estimate of 50
cents to less than 13 cents, and
the SEC's figure is cut from 26

are

t

Department

YSecurity Dealers

50 BROADWAY

:

V

y:..

JUDGE

Manager of our Trading

Greater

consciousness of

ip announce

appointment of

Federal

millions of in¬

common

from the

pleased

are

MR. WILLIAM E.

By RAYMOND M. FOLEY*

f

Commissioner of the Federal Housing Administration

mated by the expert, all preferred
arrears could be paid off within

or

Tele. NY 1-2500

Problem

$17,-

With earnings at the level esti¬

mean

$

the

700,000..;.-

three

Philadelphia (2),

'•-VT

(Continued from page 1454)
Yet the
SEC
"as¬

of

Street

1500 Walnut

(5)

Broadway, New York 4, N. Y.

Tel. WHitehall 4-6430

$26,698,860.

figure

New York

PETER BARKEN

1904';

Public Utility Securities
a

Curb Exchange

Wall Street

to

CHAS. H. JONES & CO.

50

sumed"

Stock Exchange

New York

W. J. Banigan & Co.

OFFICE

Phone Rittenhouse 3717

CO.

Members

M. H. Rhodes, Inc.

H. M.

Syndicate Manager

VAN ALSTYNE, NOEL &

American Insulator

Bought—Sold—Quoted

common

us as

Eliminator

Issues

John Irving Shoe
Crescent

Railway

Supply Co.

Pittsburgh Railways Co.
All

rejoined

Carbon Monoxide

a

that

at

six

year

this

job of private
If American

to seven billion
and stressed the

primarily the

was

about

complacent

mands.

millions

If

their

de¬

veterans

fought for what the

who

word "home"

implies are not to be disillusioned,
cannot idle about.
The day

•we

for delivery has

dawned upon us.
to be

If American workmen are

fully employed,
our

we

must accept
it.

job in housing and do

of,
and at the task of getting ready.
There is much more to be done
All

builders must be aware

over-

Commercial &
25 Park

Chronicle,

Place, New York 8,

than merely to
a

in

securities.

927,

M

Financial

There is

•

of

the-counter

give service

orders

execute

and

Box

enterprise.
families are to live

happily and securely, they must
have real homes, and we cannot
be

UNLISTED. TRADER
Wishes position to

N. Y.

»

wait for materials.

big immediate task of

organization

—

of

planning

—

of

early
action.1
The public needs a vast improve¬
ment in its housing situation. ? It
make-ready

expects that

with

place

and

improvement to take
reasonable despatch,

though not all can be done

even

today

or

tomorrow.

evidence in

It expects an

the early tomorrows

the job is being tackled

that
"

*

4

*•

.

i

v

in-

SPECIALISTS

SAVOY-PLAZA, 1 nc.

in

2nd Inc.

Real Estate Securities
Since

REAL ESTATE

:vA;,:;;AAAA'-:

3-6s, 1956 W. S.

.

1929

Circular

Request

on

SECURITIES

Walter

Seligman, Lubetkin & Co.

Primary Markets in:

Murphy, Jr.

Co.

&

Incorporated

165

4's

HAnover 2-2100

Street, New York 4

Broad

41

Are the 40 Wall Street

N.Y. Athletic Club2-5's
Beacon Hotel, 4's

Situation.

<

Exchango
York Curb Exchange

Members Now York Stock

40 EXCHANGE

PL.,N.Y.

Bell Teletype

about 194 feet.
The entire plot comprises a total ground
of about 33,590 square feet, roughly 23% owned in fee and the

averages

Dlgby 4-4950

area

30, 2022.
Building—The corporation owns

buy and Sell;

the

building erected

70-story

on

plot. The building is of mod¬
fireproof
construction and
contains 63 stories of office space
the

Certificate/*

ern

and

TITLE CO.

Mortgagee

and 7 additional

rentable

Net

PRUDENCE AND

penthouse floors.
approximates

area

845,000 square feet. The Bank of
Manhattan occupies banking and

REAL ESTATE BONDS

other

under lease

space

May

to

1, 1951 at an annual rent of $1,000,000, with ' options to obtain
three renewals extending 71 years.
be

one

Dlgby 4-2370

2V2%
interest
shall
be
(a)
credited to reserve for working

capital and contingencies, or (b)
applied to the sinking fund, or (c)
added to gross cash income for
the next six months' income pe¬
riod,

Broadway Motors Building
;;
4-6/48
t
>

1.939

,

Governor Clinton
2-4/52

*

for

Midtown Enterprises

n5/64

165

W.

1944

Broadway Building

4

shares

Teletype 8F 61 & 62

of

Common
in

eliminated

The

Aldrich to Address

I

N. Y. Stats Chamber
Winthrop

W.

Aldrich,

equity

available

six months'

any

used 80%

'

J

fund,

and

For

Stock

As

bondholder

in

affiliates

as

terest

for

1945,

in

charges

a.

first

1937

mortgage
held no

he

there

1945

In

$210,000
income;

were

are

no

fixed

in
in

interest

and 20% for sinking

charges but earnings are sufficient

of the 80% fund

to provide for interest in excess

any excess

C4.JL ^

O

O

Paul V. McNutt

Comment

—Huff, Geyer & Hecht, 67
Street, NeW York 5, N. Y.

is¬
sue of "Railroad
Securities Quo¬
tations" issued b.y B. W. Pizzini
& Co., 25 Broad Street, New York
is

available

Also

Boston

new

a

Prospects for Gold—Discussion
situation, with particular ref¬
erence to United Gold Mines Co.

six-

—B. E. Simpson

the

pertaining to

analysis

Also available a

Stock.

ence

the

and

stocks—White

insurance

ee,

NSTA Notes

fall

meeting of the

Securities—Revised

&

plan

of

Hopes for Railroad Se¬
Holders?—Reprint of talk
by Artnur C. Knies available to
dealers—Vilas & Hickey, 49 Wall
Street, New York 5, N. Y.
Also a leaflet of ICC Comment
011
Transportation Statistics.
What

amending the fourth edition of
"Guide."—Pflugfelder, Bampton

Commerce

of

York 6,

the

of
at

on

SECURITY TRADERS ASSOCIATION

Liberty St.
Oct. 4. Mr.

Aldrich

ing

American Agricultural Chemical
common—Analysis—Brady & Co.,
49 Wall Street, New York 5, N. Y.

Review—Containing com¬

parative

data

Market
Funded

Cas-

Fire and

on

__L

nates to be voted upon at

the

Council of the

International

New

Broadway,

N. Y.

Nominating Committee of the Security Traders Association
an open meeting at the New York Produce
Luncheon'Club on Wednesday, Oct. 3, from 4:30 until
5:00 p.m.
A;
.•/ ; A,A:
AA. \A/.,AA.■
The purpose of the meeting is to give all members an opportun¬
ity to recommend to the committee candidates for five Officers, three
Directors, two Trustees of Gratuity Fund, four Members of the Nom¬
inating Committee, three National Committee Men and five Alter¬

meet¬

of

61

Rust,

News

debt

Exchange

presided
the

&

of New York will hold

re¬

London where

at

OF NEW YORK

The

cently
re¬
turned from
he

for

railroads—McLaughlin, Baird
Reuss, 1 Wall Street, New York

curity

the

Chamber of

York

Reconversion

Railroad Reorganiza¬

to

Guide

address

State

the

the

reorganization of New York, Sus¬
quehanna & Western RR. Co.—
The second in a series of revisions

New

in

Railroads

8, N. Y.

of

65

show¬
properties, etc.

Period—study of the outlook

issues.

tion

first

colored map of

&

Co.,
Mississippi
Valley
Trust
Building, St. Louis 1, Mo.
Also comarative figures on cer¬

Chamber

the

Colo.

Cripple Creek district

ing location of

Flexibility—Discussion of bank

California

& Co.,

Building, Denver 2,

Maine $7 Prior Prefer¬

&

Wall

of

4, N. Y.
page

operating results

ualty Insurance

Secur¬

Railroad

on

ities—Contained in the current

tain bank and insurance

Chair¬

to send

understood that the firms mentioned will he pleased
interested parties the following literature:

ft is

International

will

1479)

Recommendations and Literature

of the Chase National Bank
of New York and President of the

m e r

past week the

the

Dealer-Broker Investment

man

Com

"during

(Continued on page

Man¬

War

the

of

arm

in¬

fixed

1937

available,

of

excess

period is to be

that

regional directors of the United
States Employment Service have
been
meeting in Washington to

McNutt

his

than

c

the

cessfully during the war years."
Continuing, Mr. McNutt, said

•

t
e,"

n

began, "which
was
the
op¬

the

of comparison

the equity; in 1945 he
pro-rata share of 100%
of the equity. In 1937 the funded
debt was about $5,770,000 more

were

i

v

r

'

I

of

part

owns

reorganization.
income

basis

a

concerned.

1,200

net

in rental income
the loss of former

'

*

e

Em-

y m e

of $1,251,-

following schedule is of interest
as it shows the improved situation
as far as the debenture holder is

for interest (not to ex-

ceed 21/2%)
o

the

mos.

and

owner

tenants.

10

par

capital stock

Preferred

of

1st 6

drop

*Sharp

indebtedness.

shares

on

occasioned by

Wall
a

on

"The United

erating

500.

$5,387,000
principal amount of General Mort¬
gage1 bonds together with 32,500

J. S. Strauss & Co.
Bell

on

job of the United States
Employment Service is far from
done.
In fact, it faces bigger and
more
complicated problems than
those with which it coped so suc¬
But

nemploy-

2,503,0001"

:

tBased

rate of 2 shares per

at the

other

Montgomery St., San Francisco

6's

____

1945

$1,000 bond represents the equity
acquired by the bondholders. No
consideration was given to any

4»/a/58

155

The

basis.

par

issued

s.~

Leasehold

i

Commission has ended.

Manpower

n g

figures on reconvers

of

is an

1,971,000
2,302,000

1943

Corporation First Mortgage

and

Fee

w. s.

some

t i

Now it

week.

integrated part of the nation's
peacetime organization for full
employment. The job of the War

re¬

e s

Mr.

1942

Forty

intefc-

the

was transferred' to
States
Department

last

Labor

Philip-

leased

S

has little government

and is in an enviable com¬
petitive position.

Street

1

1938

1,814,000*
1,840,000*

of

United

Commissioner

p

$2,676,000
2,587,000
2,206,000

1937

Not Available

holders

duction,

and

pines,

the

while

Commission

power

mightiest labor force of all times
was being mobilized for war pro¬

High

of the

reconversion lay-offs
to peace time

of war workers and veterans

Com¬

power

now

States

1941

to

the Mutual Network on

Man-:,

mer

u

survey

1940

issued

over

ment.

debentures are the
result of a reorganization of this
property as of Dec. 1, 1940 after
a
default in the payment of in¬
terest on May 1, 1939. They were

MARKETS:

reporting

jobs, Paul V.
McNutt,
for¬

come:

The present

FIRM

In

and prospects for return

of conditions reveals
the following trend of rental in¬
A

space

Teletype NY 1-1942

of Directors

Board

the

as

shall determine.

property is considered to

structures,

39 Broadway, N. Y. 6

amount sufficient to pay

an

of the finest office building

This

SIEGEL & CO.

garding Reconversion Unemployment and Says Bulk of War Plants Are
Reconverting to Civilian Production. Holds U. S. Employment Service
Will Aid Veterans in Getting Jobs.

missioner

under *■
over
ground leases extending to April
balance, roughly 77% held

NY 1-953

Concern Re¬

Manpower Commissioner McNutt Expresses No

Former

(actually

property owned by Forty Wall Street Building, Inc.

by the holders of the Debentures of 1966) consists of:
Land—A plot having a frontage of 150 feet on Wall Street and
209 feet on Pine Street extending the full depth of the block, which

SHASKAN & CO.
Members New

Building, Inc. Debentures of 1966 Which Carry

100% of the Equity Underpriced at Current Levels? Comparison of
Markets and Facts Relating to This Property Discloses Interesting

The

'

NY 1-1440

Says Lay-Offs Have Passed Peak

Real Estate Securities

(Park Central Hotel)

■.

Teletype

HA 2-6470

Broadway, 4H's

870-7th Ave. 4K's

We

NEW YORK 5

49 WALL STREET,

York Security Dealers Association

Members New

Hotel St. George,

W.

W.

Aldrich

subject of his address at the New
York Chamber will be

The

assist

Chamber. The

announcea

later.

Weinberg ISlow Partnership
Celia

Weinberg has .been ad¬
partnership with Sam¬
Weinberg in S. Weinberg &
Co., 60 Wall Street, New York
City. Philip Weinberg was for¬
merly a partner in the firm.
mitted to
uel




Committee

them

will

in

the annual election in December.
welcqme

promulgating
joining year.'. -A
\

a

recommendations

any

strong
'

group
V

that

will

of candidates for the

Summers, Trustee, Cur-

rie & Summers, chairman; Arthur W. Bertsch, G. A. Saxton &

Co.,
inc.; Charles H. Jann, Estabrook & Company; T. Frank Mackessy,
Abbott, Proctor & Paine; Harry-F. Reed, Van Tuyl & Abbe.

following have been elected officers of the Seattle Bond

Albert

O.

Foster,

President,

Foster

position of the stock:

%

'

Deficit

for

'«

&

.

Marshall;

'

Edwin

/
Mott,

Vice President, Bl.yth & Company, Inc.; W. L. Stein, Treasurer, Bramhall & Stein; Robert M. MacRae, Secretary, MacRae & Arnold.

*1945

charge

interest

610,000

:

None

323,220

6%
80%

based

on

488,000

of excess
210,530

charges

sinking

income

doubt exceed

"2,503,522

802,000
689,370

6%

mortgage

interest
after

-

700,000

560,000

charges

mortgage

General
Income

'

585,120

2,676,590

.

interest

1st

100%

None

,

income

$11,106,500

700,000

1
taxes

Excess income before interest charges
Fixed

9-24-45—64 bid

"$16,876,500

rent

estate

■

1945

1937

4-27-37—71 Va bid

Equity with bonds_^.——

Real

&

1485)

WALL STREET COMPARISON
\-l

Ground

and Socket—

Cirp,,1"r—Vnun®.
(Continued on page

r.-A-'/A vA

40

fund_____.
Bonds retired since reorganization in 1940

Traders' Club for the coming year:

American Forging

dis¬

equity value

count to increase the

Available

SEATTLE BOND TRADERS CLUB
The

$120,-

and to provide over

for debt retirement at a

000

Rental

.

Members of the Committee are Willis M.

of 4%

122,000

$1,251,700 for first

$2,503,522.

.

--

383,000

six months

Total

for

year

will "no

,

We believe the future

prospects are bright for this property and
levels around 64 are un-

that the debentures with stock at current

utrppcea and merit

(approx. 4.4%)

None

None

consideration.

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

162

SCHENLEY DISTILLERS CORPORATION

FRANCISCO TRADING IN NEW YORK STOCKS

SAN

''

.

" I™ '•
forty-eight stocks traded

Exchange are also traded

Stock

'

;

1
.

NOTE;—From time to time,in this space,

•

there will

'

on

5:30

l

appear an advertisement uhich
hope will be of interest to our fellow'

we

Americans.

(E.W.T.) ; :! ;

p. m.

a

series.

A list of these stocks is available upon request

,

V'\ - Kaiser

is

an

article of

extra

Private Wire

Unfinished "Business"

Co.

«.

This
"

SCHENLEY DISTILLERS CORP.

Quotations and executions promptly handled over our Direct

J

" ",y7'

.

the New York

the San Francisco Stock

on

Exchange between the hours of 10 a. m. and

'

,,?■';

»

...

One hundred and

7

1457

MEMBERS

NEW YORK STOCK
NEW

20

pine

NEW

street

YORK

YORK CURB

EXCHANGE

1

'i.

.

/

By MARK MERIT

EXCHANGE

15DO RUSS BUILDING
SAN FRANCISCO A

$AN FRANCISCO STOCK EXCHANGE
"

5

They're comir.g home by the ship¬
load, and the trains and buses arc
crowded too. They've been wait¬

"No Hat in Hand": Halifax
ing the coming years of peace.
They thought the British—to say
the least of it—ungrateful.
Per¬
haps they also thought the result
would
mean
revolutionary

changes in
I've

that

whatever

doubt

no

field of policy.

every

an

Overwhelming majority of Britons
of all parties remember, and can
never
forget, the great and in¬
deed unpayable debt that we, and
I think
the world, owe to Mr.
Churchill.
have

we

hot for

going

But under

a

try

system

our

party and

a

and they were not
discharge their

man;

to

for

vote

to

to

for
to the

great personal debt by voting

party, if they had come

one

that

conclusion

to deal with all the

that

came

as

soon

That

they

mean

that

in

He has a place

history and in the hearts of his
which no man
take from him.
His fame is

it be said
said of Abra^
ham Lincoln, that "now he be¬
longs to the ages."
Most truly can

&f him, as Stanton

7'No' Rash

Experiments

7 Nor should it be assumed that
the

government

new

perhaps can hardly
happily have never
at their gate or
waited
nightly upon death.
I
went
to
the
great
service
of
thanksgiving in Westminster Ab¬
bey, and was moved by the mem¬
ory that the last time I was there
was
just before Dunkirk, when
we
were
interceding for a great
army of our fellow
countrymen
almost, but not quite, caught in
the closing jaws of the Nazi trap.
had

is going to

plunge into all sorts of rash ex¬
periments.
In England we have
a
strong tradition of continuity,
and, after all, many of the lead¬
ing men in the Labor Party were
in
the
War
Cabinet with
Mr.

those

to

with

fulness to God who had

So

V-J

celebrated

we

Britain;
of

having

and,
the

to

facing

less

so,
task

formidable

were

Black Monday
after.
To begin
a

the morning
with, we were short• of every¬
thing: of manpower, having suf¬
fered over 940,000 casualties out
of a population of 47,000,000 and
having
mobilized
for
war
a
greater proportion of our people
uian any ouier United Nation; of
houses, having had more than a
quarter of our houses destroyed
or damaged by enemy action, and
needing in addition about a mil¬
and

make

half

a

houses

new

to

those we had not
built during the war; of food, of
fuel, of clothing, of all the things
that

for

up

life

make

bit

a

comfortable,

more

and

easier

and

that

we

,

.

as I did, without
quickly to have high
for
their patriotism and
manship.^
During
the

be

will

there

months

Human nature being what it is,

coming
regard people
states¬
coming

plenty

of

differences of
and

opinion about ways,
but not much, I be¬

means,

lieve, about ultimate ends. I need
not labor the argument.
You are

You

democracy, as we are.
iuiow how the democratic
'a

sys¬

had
hoped
that
peace
lighten some of these dif¬
ficulties.
But what actually hap¬
pened was that one minister told
us
we were going to be short of
coal
this
winter,
another that
our
clothing ration must be cut
would

which

bomb,

here, was greeted
feelings—of profound
that
this 7 earth-shaking

Britain,

as

with mixed

.relief
weapon
us

had

been discovered

and not by the enemy;

and

horror

even

at

the

by

of awe
terrible

it unloosed; of

destructive power

Lope that it would bring, as it
did, a speedy end to this war and

;thus save more life than it de¬
stroyed; of fear of what would be
the future of the world if we did
not

end

now

find

all

to

a

means

It

war.

to make an

lays,

blinding certainty, an even
ier load of
fore

on

with

heav¬

responsibility than be¬
shoulders of those

the

will be to ensure
And I suppose that here,
too, it is the prayer of all think¬
ing people that this time our po¬
litical wisdom will not lag behind
our scientific invention; and that
now
at last the first will learn
how to
use
the second for the
world's welfare and not for its
whose

duty it

peace.

destruction.
'*

Peace

V

-

followed quickly,

ing to our

bombed and beleagured




because

bering,
reaction
when

of

it

many

explains the
of our people

few days later they heard

a

that Lend-Lease

was going to end
immediately and that the
shortages were therefore likely
to be even greater than they had
supposed.
No
one
questioned
your right to stop Lend-Lease as

almost

soon
we

the

the

as

war

was

had not expected
because

soon

so

had not expected

we

to end

But

over.

it to end

and when
got this news on the top of
everything else, it hit our people
a
bit hard.
I think that against
a
similar background we would
war

so

have

this

seen

or

As

any

the

:

all about.

"V,;

7/:77'7 ;"

reaction

in

Our economic situation in Brit¬

ain is serious.

It's not desperate,

;

your
were

sands

before

about

representatives.

finish

when

ain. 7 Our

position then

very

was

A lot of people here and

serious.

elsewhere
But

of Brit¬

said

it was desperate.
through.
What we
is really a second bat¬

came

we

are

in

now

tle

of

Britain, and I haven't the

that,

as

In

.;
one

;

have gaade our

sense, we

able

to

work,

live

or

long

so

because your people and ours had
known all along that when the

try

was

to

won

handle

we

should

some

nomic problems.

have

tough

import. We can only im¬
so long as we can pay.
We
only pay by our exports or
services like shipping.
And
cannot export or revive our

port
can

we

great

.

,,

matter.

carrying #trade

until we
have reconstructed our plants and
restored our merchant navy. That
is

the

vicious

circle

have

we

to

the

as

peoples

and

sterling
whom we

area,
can

and

marketable foreign in¬
to

for

pay

them.

In

this country alone we spent some
way.
Then
along; we no
longer needed to pay cash for
weapons; and so we let our ex¬
port trade go the way of our for¬

$6

billion

in

Lend-Lease

investments, i Incidentally,

eign,;
we

this

came

never

had

the idea

of Lend-

Lease I have sometimes heard ex¬

here,

Christmas

as

from
We

world.

a

present
Uncle
saw

it

kind of huge
all the year
Sam

to

rather

the
as

a

great pooling of Allied resources,
which
and

placed the weapons where

by whom they could best be
And

used.

Lend-Lease, for all
its saving virtue as a war instru¬
ment, allowed us to forget our
export trade while the war was
on.

It

so

enabled

us

to

make

our

country into an arsenal only sec¬
ond in output to yours; to help
ourselves and also to help our
Allies; for to you alone
in reciprocal aid nearly

we
as

gave

much

in relation to our national income
as

you

gave

us

in

Lend-Lease.

much

and

as

That

as

restrictions.

could

we

little

means

as

we

from

them

could outside.

controls, barriers ana
It may not be the

solution, but if it seems to be
the only way out, whether we
want to or not, we may have to
take it.
you

The other solution is that

and

should try to

we

can't work

we

gether
and

that

out something

will

expanding

the belief that if

in

the

long

run

be better off.

This

is

not

see

make

for

il

to¬

freer

world
we

trade; in
can get this,

everybody

will

/'7,7'7'r ^VV';7
only our

looking for jobs, too.

are

have

would

your

It's

these fine lads and

sincere"

our

wherever

that

possible

lassies ought

back and finish that "job"
just as magnificently as they fin¬
ished that other job—in Europe
to

go

Pacific

the

in

and

and

in

American training camps, '
It's not

an

easy

the

v

.

thing to do,

ex¬

cept to say it as we're saying it

"Go back and finish your
get that degree you
wanted." Life is a long pull and
now,

education;

now

that they

have done

much.

so

for others, these young men

now

and

they should do something

women,

for

themselves.

They'll

reap

the benefit—all of their lives!

FREE — Send
corp.,

postcard

a

or

letter to

SCHENLEY DISTILLERS

MARK MERIT OP

350 Fifth Ave., N. Y. 1,N.Y.,

and you will receive a booklet contain¬
a man puts a fence around
ing reprints of earlier articles on various
garden, he's doing two things
subjects in this series.
—he's
keeping himself in and
other people out.
It's your prob¬
lem, because before the war Brit¬
to the large nations for economic
ain was your best customer, tak¬
in
peace,
as
they
ing about $500,000,000 a year in leadership
American goods; and when yoif turned to them for military lead¬
have
ership in war.
satisfied
the
accumulated
'We are not coming to you hat
demand of your own consumers
in hand as suppliants.
We do not
you will be looking for markets
want
to
ask
anything of you
outside.
It concerns everybody:

when
his

because the other

people will turn

which

you

not satisfied

are

is in

the ultimate interest of your own

We shall not accept any
we are not quite sure
we
shall be able to honor.
Nor,
of course, are we holding out a
gun and suggesting that you must
country.

obligation

Over-the-Counter Quotation Services

do this

For 32 Years

that

or

or

take the

conse¬

All these courses would
not only be stupid, but would be
quences.

complete misreading of the sit¬
What we are doing is to
come
to you as your allies and
a

uation.

comrades

NATIONAL QUOTATION BUREAU,

Inc.

48 Front

Chicago

ous

war;

Street, New York 4, N. Y.
San Francisco

in

to

then

can

a

great and victori¬

to tell

make

you our

from

learn

and

and

Established 1913

;

completed their col-/

education.

problem,

problem, but something
which vitally concerns the whole
world.
It's our problem because
or

their

number of them, here

a

*

best

and

men

Schenley, wearing"that button." \

They

buy

having to pay in dollars
have not got.
We should buy

we
as

from

young

interrupted

.Under normal circumstances they,

the

without

say some¬

armed forces. We've

our

already met

garden, dhat

important

formal education to don the uni¬

at

own

>

.

who

women

Broadly speaking, we have two
courses now open to us.
One is
our

this

'

form of

cultivate

on

feel

to

reason

thing about the

Britain's Alternatives

to

plans and efforts

However, we'd like to

break.

had to be won,

vestments

re¬

want

you

?

There's

feeling

gold

have

get the answer,
decent job." No need to

a

women.

known

whatever the cost,
nothing else mattered.
In
the early days, when we badly
needed equipment and food from
overseas,
we
sold most of our

they

optimistic about

and

to

eco-(

as

lege

war-

ask

you were to

of American business and
our government, to do everything
possible to provide employment
for our glorious young men and

is to say, to develop our
}rade as
much
as
we
can
with
what is

The

another

the part

present difficulties for* ourselves
by what we have done in the
war.
We put everything into it,
kept nothing back.

go

tens of thou¬

Before

after

review all the

pull througn
pulled through in

we

answer,

has passed, we'll be able to

"I want

least doubt we snail

1940.

are,

them.

most?"—you'd

won, our foreign
have
largely gone,

The

Lend-Lease,

of

turned, "Now what do

foreign trade is mostly gone,
47,000,000 people,
living on a small island, and only

by

the first battle

and

the

VI want to
,

those1 boys,

victory is

investments

planned long
had been said
of

.

,

course

anything
the

.

"millions." If

say

put all our efforts, our man¬
and our plants to the single
purpose
of
victory;
and
now,

power

1940

other country.

of

heard

Phone LD-159

•

We

"desperate" suggests de¬
spair, and no one in Britain feels
that.
We remember the days of

know, Lord Keynes is
over here now, and he and I are
at the moment engaged in talks
talks

have

"Speedy Victory

we, can

because

and

Question,

"What do you want most?"—you

and we are still

Situation Not Deperate

you

with

the

put

our

i

in all parts

a year or so ago,

had

would

soon;

same

esteemed

ours,

..

we

war

bring¬

anything about what is hap¬
pening in these talks,- but I will
say a few words as to what it is

round

did

Home Office Atlanta

me

right to tell us, but the

news

•

You won't expect to hear from

.

pressed

you

atomic

the

Then

in

and

works;

world,

you

year

down, and a third that we should
have less to eat.
They were quite

don't quit bring us down with a bump from
the relief and rejoicing of V-J
trusting
it
even
if - it doesn't
always seem to work quite the Day.
I think this is worth remem¬
way you think it should.
tem

people of

had made

these

among

Well, here they

in

Day

done

cheerful

of the difficulties

some

These

of

lion

if

SZ55B SSSZZgZfiBSSSZ ZZSSSSZZ52ZZ

I

Churchill; so that the policy of
the old government was theirs as ing the years of war.
well ; as his.
And no one could
Britain Suffers from Shortages
have
sat
in
that Cabinet with
them,

Private Wires

months and

you

home!"

given us

victory and peace.

turned

of the

DISTRIBUTORS OF

BROKERS OF BONDS, STOCKS, COMMODITIES

thank¬

and

If

.

INVESTMENT SECURITIES

overwhelming

an

deliverance

of

survey

Service

Leading Exchanges

UNDERWRITERS AND

One looked back from these days

sense

and

a

enemy

had cheerfully gone without dur¬

very

Other

who

the

7 decided did not
they were ungrateful enough to make
so

can

;

certainly a sense Qf relief,

ahead.

fenow countrymen

secure.

Members New York Stock Exchange

those

,

realize

of

problems

crowding in upon us
the war was over.

Mr. Churchill.

to

rea-

they wanted another lot

sons
men

as

various

for

that

many

for several years.

(Continued from page 1451)
island

ing for this for

BANKERS

INVESTMENT

to

see

our

great a power for
been for war.

you

if

situation
of yours;

together

we

partnership
as
peace as it has

1945

Thursday, September 27,

CHRONICLE J

COMMERCIAL & FINANCIAL

THE
1458

It would retain the with¬

dends.

Trading Market in

—We Maintain

Central
Electric & Gas

& SO. BEND RR. Com.

POWER CO., Com.

MOUNTAIN STATES

MANUFACTURING CORP., Com.

GALVIN

Common

payment of taxes.
It would con¬
tinue to permit married persons
the
option of making joint or
separate returns.
The Committee
recommends no present change in
the tax treatment of capital gains.

Active Markets In—

CHICAGO SO. SHORE

Incorporated

and

tax

impose

Proposes Post-War Tax Redactions

of, Securities

Dealers

Wholesale Distributors
Middle West

Corporations With a
taining Excise Taxes.

Pacific Coast

—

the^

to

able

downward as

Taxation

enue

650 S. Spring St.
CG 99
Trinity 3908

*and

to Treas¬

ury

officials
"Post¬

by

a

19081

,

Stock Exchange
Board of Trade

Chicago

tary

Treasury.
The

Write For M-3—

208 SOUTH

from the

CHICAGO 4, ILLINOIS
Telephone Randolph 4068
Wire to New York
v

taxes

Corp., Come

•Burton-Dixie

Com.
•Gibson Refrigerator Co., Com.
Globe Steel Tubes Co., Com.
Com.
•Wells-Gardner & Co., Com.
•Oak Mfg. Co.,

'Prospectus Available on

Request,

Paul H.Davis &Co.
Established 1916
Members Principal Stock Exchangee
Chicago: Board of Trade
■

10 So. La

Salle St., Chicago

3

Teletype CG 405

Tel. Franklin 8622

lndiananotis, lad.

Rockford, 111.

-

AVAILABLE NOW

the

on

.

lief

Long-Bell Lumber

of

get, to eliminate deficit spending,
and to reduce the national debt at
the earliest

.

in

tions

with

and

Consolidated Gas
Utilities Corp.

with

the

During the "transition period.,"
at

two

Stock Exchanges
Chicago Board of Trade

Members Principal

SALLE ST., CHICAGO 4

Randolph 5686—CG 972

1 Wall St.




years,

individual
burdens the repeal .of the 3%

tax

Request

-

three

Committee recommends

first

Corp.

HICKS 6- PRICE

York Office

to

the

step

to

tax.

1.

as

a

relieve
This

would

free

people,
principally in the low income
brackets, from paying any Fed¬

approximately

New

tax

will follow.

normal

231 SO. LA

to

"transition

a

post-war

range

estimated

The Chicago

revision
period,'r
"normal,
longperiod"
which

regard

deal

condition under which govern¬

9,000,000

continually seeking to
illusion of prosperity

is

ment

the

public debt."

by adding to the

Individual

post-war pe¬

the

riod, the Committee suggests,

individuals
should be set at between 15 and
tax

initial

rate

on

upon the level
Federal
expenditures

depending

which

The

set.

range

25-30%

rates

would

then

progressively upward to
at
the
$8,000-$10,000

40-45
$25,000-$50>000

per cent at the
bracket and 49-

the

$75,000-$100,000

bracket,
54%

at

with a top rate of
72% at the $1,000,000 level.
bracket,
This

with

contrasts

rates which begin

,

is

board.

retained
These taxes the
be

should

war.

views

desirable

as

to

diversify the sources of tax rev¬
enue and to stabilize the tax yield
in

of

Taxation

leave

and

States in

the in¬

the financial
independence of the States in the

and local

performance *>f State
functions.

the Committee makes
recommendations concerning the
Finally,

personnel
the-

of

administration

and

Internal

of

Bureau

67-

Revenue

Department, urg¬
ing more adequate salaries and
security of tenure to attract com¬
of the Treasury

present

000.

of

Corporation

Finance
tion

of

Willow

the

major por¬
bomber-

a

Run

plant and at the outset the cor¬
poration intends to have its prin¬
cipal place of business in the De¬
troit area.
The management may
in the future consider plans for
manufacturing

or

assembly oper¬

localities, including

ations in other

the Pacific Coast.

of

Chicago Personnels

Members

Committee
Members

the

Committee

(Special

on

The Financial

to

Chronicle)

CHICAGO,

Fairchild, Knox Professor of Eco¬

ILL.—Edward
K*.
Hardy, Jr., has rejoined the staff
of
The
Illinois
Company,
23 X

nomics, Yale University; Rowland

South La

Policy are, in ad¬
Mr.
Magill, Fred R.

Post-War

dition

Tax

to

City Bank of New York; Victor

President,

Stempf,
stitute

N.

Tarleau,
Bar

York

and

and

member of
former Tax

Legislative Counsel, the Treasury
Department.
•

to The

(Special

H.

American In¬

Accountants,

of

Thomas
New

Salle Street.

Comptroller, National

R. Hughes,

is

Financial

1

Chronicle)

CHICAGO, ILL.—Peter L. Maes
now with Republic Investment

231
South La Salle
Maes was formerljr
with S. R. Miller & Co.

Company,

Mr.

Street.

^

The

work in pre¬

background

perts under the direction of Dr.
Harley L. Lutz, Professor of Pub¬
lic Finance,, Princeton University,
who served as Director of
Re¬
search

on

Parker,

the project, and

who

rector.
The

Tax

■.

Committee

Policy

May, 1944.

came

Alfred
Di¬

Associate

was

Merrill Lynch
CHICAGO,

on

into

Miller has become associated

Chicago

in

Miller

It was the result of a

economists and presided

by Dr. Henry M. Wriston,
President of Brown University.

Har-

resident partner of Merrill'
Lynch, Pierce, Fenner & Beane,.
announced
today
that
Thomas;

Post-War

being

in Cgo.

ILL.—Homer

grave,

Board

special conference attended by a
score
or
more
of the nation's
leading

Thomas Miller With

the

,

firm,
Mr.

formerly

was

with

the

Building.

office

Trade

of

of
a

partner of.

Winthrop, Mitchell & Co.

B. H. Sincere Resumes

the

as
7 \

Harold Gibbs Joins Staff
of J. Walter Thompson
CHICAGO,

W.
associated

ILL —Harold

$500 for Gibbs, for many years
each taxpayer and for each de¬ with financial advertising on La
eral income taxes.
The Commit¬ pendent.
It would alleviate the Salle St., has resigned from Doretee would establish a single set present double taxation of cor¬ mus & Company to join the finan¬
of progressive tax rates on indi¬ poration dividends paid to indi¬ cial advertising staff of J. Walter
viduals, eliminating the present viduals by allowing a credit to Thompson Co. in the Chicago of¬
combination of normal tax and stockholders receiving the divi¬ fice, 410 North Michigan Avenue.
exemption

corporation has arranged to
the
Reconstruction

over

ing the 3% norpial tax, and range
up to 91% on incomes over $200,-

present

The

lease »' from

petent career men.

at 23%, includ¬

The Committee would keep

public financing, the com¬
pany's outstanding capitalization
will consist of 2,200,000 shares of
common stock, par $1.
' '

the

of preserving

terest

it at $10 per
effect to.

Giving

cash.

in

share

would

the 48

to

gifts

estates,

Committee

the

gasoline

The

chased directly from

strain.

times of financial

|

,

corporation presently has
outstanding 500,000 shares of com¬
mon
stock, which the Kaiser in¬
terests
and Graham-Paige
pur-|

paring the Committee report was
done by a staff of research ex¬

Taxes

In the long-range

are

recommfend,a-

Committee

The

basis of national insolvency,

create

at

Revision

Tax

a

20%,

possible date.

Dearborn 1501

Teletype CG 257

a

of

favor

in

on

clear'

a

continued ef¬
forts to balance the Federal bud¬

CHICAGO 4

on

"through

only

private enterprise."
The
Committee takes

stand

Com stock & Co.

Circular

can

the
encouragement and re-energizing

Brochure

Salle St.

"achieved without sac¬
individual liberty,"

attained

be

Second Edition

231 So. La

of

rifice

healthy and vigorous

a

economy,

Company
Four Page

that

the

after

of

number

reasonable

a

taxes

on

Motors

•

excise

and Mr. Frazer
behalf of Graham-Paige
Corporation, of which he
President and Chairman of the

acting

proper

moved,

August,

in

Kaiser Company,

sance" excise taxes should be ie-

Proper

.

on

organization

the

in

corporation

1945, Mr. Kaiser acting on behalf
of Henry J. Kaiser Company, The
Kaiser Company and California

While most of the wartime "nui¬

.

Central Steel & Wire,

a

the

of

report suggests that there
place for excise taxes.

The
is

for
reduc¬ penditures by the Federal Gov¬
ernment should be reduced rap¬
both corpora¬
idly to the point where a bal¬
tions. and individuals are included
anced
budget is possible.
The
in
the
report.
Federal taxes
Committee, recommends further
ultimately would be reduced to
.tax relief' both for corporations
from $15 billion to $22 billion a
and individuals at this time.
year,
compared with war rev¬
"Our interest," the Committee
enues
which reached a peak of
declares, "is in a tax program for
nearly $47 billion in the fiscal
a
solvent America.
By national
year ending June 30, 1945.
•
solvency we mean that the Gov¬
The report cautions, however,
ernment can and does live within
that the extent of tax reductions
the
fiscal
resources
which are
after the war should depend upon
provided for it by the people
how much Federal Government
through taxation.
In a funda¬
spending isreduced, and how
mental sense a government is in¬
Soon—that "if a: policy of free
solvent if it regularly and habitu¬
spending is followed, very few
ally provides public benefits in
choices among taxes will be pos¬
excess of the amounts which the
sible."
"Expenditures
are
the
people are able—and willing—to
key," the Committee states, "and
pay in taxes, v .
.
:,
irresponsible fiscal policies in the
"The goals of high living stand¬
post-war period would prove not
ards
and national
solvency are
merely
costly,' but
unsupportlinked together.
.
There can¬
able."
Vnot
be
high level, widespread
The
Committee
cites
as
its
prosperity and a general advance
primary aim high production and
in personal and family well-being
employment and stresses its be¬
in

tax

Messrs. Kaiser and Frazer were

-

instrumental

Recommendations

Other

Recommendations

tions

automotive

prominent

Frazer,

would

repeal the penalty
consolidated returns.

In the post-war period proper,
Committee believes that ex¬

,

inter¬

It

dividends..

.

Committee

Post-war

on

tax

also

years."

war

Foundation.

CG 537

Belt System

•

the

remove

corporate

necessarily, "have
in mind the permanent tax sys¬
tem to be maintained in the post¬

under a special grant
Maurice and Laura Falk

working

LA SALLE ST.

Direct Private
>'

Magill

Roswell

excess

would

mittee declares,

;

composed
of
leading fiscal
authorities

Utilities

study of Midland

In keeping with the objective
alleviating the double taxation
on
dividends,
the
Committee

reductions, the Com¬

All of these

4

Commi t tee t is

Midland Realization
A

the

of

trialist,. as Chairman of the board
of
dL-ectors,
and
Joseph
W.:

of

surtax, with the application of a
lower rate on small corporations.

Secre¬

Under

Midland Utilities

■■

former

gill,

Members

Chicago

,

profits tax; gradual reduction of
the
corporate normal tax
and

Ma¬

Roswell

indus-J

widely known West Coast

executive, as President.
The cor¬
to a level equal or close
poration plans to produce cars in
to the initial individual rate. •
• <
the low-price field.

profits tax now that the war has
ended; repeal of the capital stock
tax and the declared value excess

headed,' by

Kaiser,

Henry J.

includes

which

tually

include

the

of

repeal

immediate

Com mi t tee,"

Fred.W. FairmanCo.L-

transition period

the

were assurances
later be reduced,

to 35 or 331/2% in the
second transition year and even¬

,

.

Tax reductions on corporations
recommended by the Committee

for

Tax

war

I SINCE

.

ac¬

cording to automotive authorities,
becomes the most important new
entrant into the automobile in-v

perhaps

tax returns go.
would be scaled
the Federal budget
as

is reduced.

Rev¬

Internal

would

it

that

rates

Committee on

LOS ANGELES 14

State 6502

far

so

tax

The

there

provided

report, were made avail¬

gressional

DISTRIBUTION

135 La SaUe St

surtax

Con¬

Joint

MARKET

SECONDARY

to fit the

Corporation,

Kaiser-Frazer

This dustry in several decades and will
be in the hands of a management
could

level of 40%.
Committee feels

present

the

launching,

formal

its

With

Repeal of the excess profits tax
at

rate,

share.

per

stand for the first transition year,

the Federal tax system

contained in a 275 page

post-war years,

UNDERWRITERS

i

its

The stock is priced at $10

tion.

would promote

feels,

Corpora- 1

Kaiser-Frazer

formed

would leave the corporate rate

Advocates Re-?

Progressive Reduction in Rates.

Recommendations for revising

For

CHICAGO 3

Would Fix Initial Individual
Would Impose but a Single Tax on

15 and 20% and

Tax Rates Between

(Incorporated), First Cali- *
Company
and Allen Sc I
Company of 1,700,000 shares of 1
common * stock
of
the
newly k
Co.

&

fornia

employment and production by
equalising the tax burden on all
types of income.

Headed by Roswell Magill

A Committee

National Association

Member,

recom¬

single tax on

a

>

fering by a nationwide under- «
writing syndicate headed by Otis

simplifica¬

of

with the of-

scheduled for today

corporate income,, the goal to be
the same rate as the initial rate
on
individual income.
This, the
Committee

CARTER H.C0RBREY& CO.

Computtee

program

a

j

fi¬

public

largest

the

of

nancing operations "in the history !
of
the
automotive
industry
is "■

It would eliminate the sur¬

tion.

Teletype CG 273
Pittsburgh? '
Minneapolis

Philadelphia

New York

Tele. CG 271.

mends

One

.

the long-range postTwar

the

period,

y

Street, Chicago 3

Telephone State 8711

CHICAGO 3
Tel. Randolph 6960

So. La Salle

135

Salle Street

120 South La

Byllesby and Company

H. M.

& Co.

1922

Established

By Otis & Co. Syndicate

corporate

with

connection

In

>

/ s

Common Slock Offered

Corporate Taxes '

taxes for

C. L Schmidt

Kaiser-Frazer Corp.

current

and

principle

holding

Sincere Go, Partner

CHICAGO,

ILL.

—

Henry-

B.

Sincere has resumed an active in¬

terest

Co.,

as

231

members

Chicago
the

a

partner of Sincere &

South
of

the

Stock

La

Salle

New

Street,,

York

Exchanges.

and

For

past year and a half he has
with
the
Psychological

served

Warfare

Division

of

Supreme

Headquarters in England, France,

Belgium and Germany.

*

•

Volume -162

■

Number 4424/J THE COMMERCIAL & FINANCIAL CHRONICLE

.

.

1459

'

1

.

We have

prepared

a

me

norandum

on

,

Copies available

upon request

•M

\>

.■'

:

(;

INCORPORATED

,;

,

^

■:

Telephone: Dearborn 6161

•

,

Airlines

kitchen & co.

'A&:*

j

CG 1200

135 South La Salle Street

Chicago 3y III.

New Jefferson Hotel Co. 4-6% Bonds

.

if' ;

..

*

Mastic-Asphalt Co. Common:

-;;;"
<< Teletype:

t

r

Hydraulic Press Mfg. Co. Common

CHICAGO 3, ILLINOIS
T,/.

Mid-Continent

Consolidated Gas Util. Corp. Common

SOUTH LA "SALLE STREET

).

Chicago & Southern

Bausch and Lomb Optical Co. Common

/'•' ■>.

I

'•

.•

.•

.

MARKETS

.

Anheuser Busch Inc. Capital

:

DOYLE, O'CONNOR & CO.

•

.

American Service Co. $3.00 Part. Pfd.

:*.D

•

continuing interest in the following:

American Barge Lines Co. Common

r,

MIDLAND UTILITIES COMMON
:'fl.

TRADING

We have a

MIDLAND REALIZATION

(ST.

Tel. STAte 4950

LOUIS)

Tele. CG 573

'

Textron Inc. Common and Warrants

links Inter-American

;

b.

''

■

With World Peace

'

!

7

Solidarity I
<*

'

Trailmobile Co, Common

,

Western Light & Telephone Co. Common

WE

•r,,

lfc',

'

*

'*<

ARE ACTIVE

Galvin

'

Senator Connally Tells Pan American Society the Inter-American Sys¬
tem for Providing for Settlement of Disputes Is Integrated With ibe

IN

Mfg. Corp.

•

.

"United Nations Organization.:;

X-f

In

address at

•

•/;,

Stifel, Nicolaus & Company

:,,••••/r"-?:-'-- v

INCORPORATED

Hotel
York

City

a

in New

■/'* ■■■{''

o

the

£

t

o

tern

will then

for

Conex¬

sx n

hope

future

k of

Pan

American

Connolly

the:■;/./.■

K::".v

the
.leadership of Dr. Leo S. Rowe, to¬
gether with other similar inter:
.American organizations is a pat¬
.solidarity and could be integrated
into

a

"related world-wide organ¬

ization," the United Nations I Or¬

ganization.

<, \

•,

-

.

„

steps have been
; taken to integrate the inter-Amer¬
ican peace machinery with the
;
United Nations Organization,"
Senator Connally said.
"As you
know I am a firm believer in the
world security
system.
In: the
i

•

"Satisfactory

the

future.

I

the h great

Briand,

of

"words;

is

'There

not

for
;Furope and another for Asia, but
one peace for the whole world.'
in line with this philosophy I did
•everything in my power at San

"We

;

are

ture, but

'.

building

-

;
*

?

speedily

"This

-way

make

we

secure

~

To

ment.

we

shall erect

in

mean

of

in
any

the inter-Ameri*

machinery outlined in
the Act of Chapultepec," Senator
•Connally continued. ".On the con-r
trary it has been strengthened by
the
specific recognition in »the
peace

Charter of the useful

role which

played in the settlement

be

*«can
"

«of disputes
character

Moreover
;

of

xence

of a local or regional
by regional agencies.
in case of the occur

an

armed* attack,

the

'

American Republics
-

'

always have

right of individual and coif
lective self defense until the Se*
the

•curity Council has taken the nec¬
measures

essary

to restore peace

Vjand security.'*..7.*

■

*•; 7"*.' • I
j "In recognizing, as it does, the
permanent authority of the Se*
'

.•

curity Council in enforcement ac»tion, as well as the inherent right
of self defense against attack, the
thus paves the way for
effective integration of our

Charter
'

the

regional / system with the
world system of security.
r

wider

we

LOS
ris

'

.

merly

White

Harve

(Special

H.

The

Financial

Shanahan

with King &

is

Building.

^

Preferred

j

&

Preferred

ij
j
|

Common

/"American Service Qo.
Mohawk Liqueur Corp.

Mr.
with

with H. R. Baker & Co.

The

Financial

:

Chronicle)

•W

Preferred, Class "A" & Common

j)

&

Common
•Circular

t

South

231

.

\

La

\

,

request

Sal!« Street

j
j

Chicago A, Illinois

LOS ANGELES, CALIF.—Ray¬
mond B. Fox and John Macbeth
have become affiliated with Slay-

on

i

adams & co.

V.¬

Teletype CG 361

Phone State 01011

.

:

ton & Company, Inc.
(Special

Nominees Presented/i
For NY

erick

the

executive

New

York

vestment

committee

70

Association

America:'

-

'

with

Pine

CONN.
has

E.

W;

Shaw

W.

Fred¬

—

become
Clucas

(Special

asso¬

&

:

Co.,

&

in

the

past was with

& Co. and prior
thereto was head of. F. R, Shaw,
Inc., in Hartford. 4
;

of

.

—

of
'

-

;

John

C.*

Tucker, Anthony & Co.
Vice-Chairman:

JACKSONVILLE,

Maxwell,
1

>

/

..

Secretary-Treasurer: Hearn W;
Streat, Blair & Co., Inc. ^
.f
Ranald

H.

Macdonald, Dominick & Dominick, and Clifford
Hemphill,-Hemphill, Noyes & Co.,
were

nominated for

the IBA to

serve

governors of

one

•

,,::' v

.

Wickliffe-

three

Shreve,

committee

years..

Frank

'

Yorl^

Lehman

a

to

1

Financial

member, of

serve one

the

exec¬

become
H.

Chronicle)

KANSAS

Bragg
H.

has

&

EL D. Allen in Baltimore 1

Co.,

with
and

The

Wisconsin

Paine, Webber

f /(Special

•

(Special to ThE Financial Chronicle) ;

seph

DeHoben

is

now

is

Barton

The

Financial

formerly

a

Allen & Co.

Alien.

was

partner in Edward D.

He has recently been
serving in the U. S. Navy.

Chicago Philadelphia San Francisco

WIS.—Earl
with

now

J

Chronicle)

The

C.

Mil4

igan Street.

Mr. Barton

was

pre¬

viously with The Wisconsin Com¬
pany and the First National Bank

j

of Madison.

Jo¬

affiliated

•

*

(Continued

on

''

-

page

<

SECURITIES

LeRoi Co.

OF

James

;
/
Koehring Co. r"f.\

(Special

The

Financial

Chronicle)

OHIO —Russell
N. Chase has opened offices in
the Union Commerce Building, to
engage in a securities business.

\

Gisholt Machine

Manufacturing Co.
.

Standard Silica Co.

■■■]■'■'

to

CLEVELAND,

Macfadden Publicatiohs

CONTINUOUS INTEREST IN:
THE

Chase Opens in Cleveland

1463)

t,

■

All Wisconsin Issues

National

Tool

Northern

Paper Mill* Co*

Compo Shoe Machinery Corp.

Froedtert Grain & Malt. Co.

^Wisconsin Electric Power Co,

'■

;

\

Hamilton

Co.

HOLLEY, DAYTON & GERNON

Mfg. <^o.

Member—Chicago Stock Exchange

I

Mr.

>'

New York 6, N. Y.

Telephone COrtlandt 7-5060

&

waukee Company, 207 East Mich¬

::::.I

":C"--i-

to

MILWAUKEE,

~

7,'•

Guenther Law

-

Incorporated
131 Cedar Street

Boston

BALTIMORE, MD.—Edward T>,

Street.

Albert Frank

was

I

rejoined the staff of
Company; 23 West

10th Street.
Mr. Bragg has rer
cently been serving in the armed
forces.

**.

•

CITY, MO.—John C.

Peet &

O.

Its-Branches

if'.''

/

Co.

Nekoosa-Edwards Paper Co.

; ■

All

In

1

;

associated

Harrison

Schroeder Hotel.: Mr. Murrie

Wisconsin Power and Light Co.

utive committee.

ADVERTISING

*

serve

Willard,
retiring chair¬

Reynolds & Co., as
will automatically
as

to The

A.

man,
year

(Special

has

Carter

formerly
Company

v;; f J KANSAS CITY, MO.—John

Brothers, and Reginald W. Pressprich, Jr., R. W. Pressprich & Co7
were named
^ as members of the
executive

with

year as ex^

officio members of the New
group..,

.

"7- •

(Special to The Financial Chronicle)

\

Murrie

FLA. —Jo4

seph L. Naftaly is with Thomsori

Manning
Barr, Barr Brothers & Co., Inc.

FINANCIAL j

MILWAUKEE, WIS.—Glenn FI / Plans Prepared—Conference Invited

& McKinnon.

W.

vj-V/;! .'.-iQi-Vl'-'"-

'

~

Chairman:

!

Chronicle)

COi,

.

.

:-7.4

4 (.Special: to- Thk Financial Chronicle)

-

FinatAcial

The

has joined the staff of
Cohu & Torrey, Alfred I.
duPonJ
Building.

R.\ Bull

v

to

MIAMI, FLA.—Frank L. Eden4

field, previously with Clark Davis

New York City,

Street,

Mr.

Group of the In¬

Bankers

Financial

Shaw

R.

ciated

Group of IBA ;

The following have been nomi-f
for officers and members
the

The

7 HARTFORD,

nated
of

to

Redwood




I

Engineering Corp.

be^

with Fairman

\

first of all if

-t

'"Howell Elec. Motors

Carter, Clarence D. Hague

business, from offices at 225 East

necessary

&.

Common

CALIF.-4

point there is no con¬
The - delegates at Mexico

are

Common

i

The financial Chronicle)

ANGELES,

(Special to

i

Chronicle)

!

1234-8

.

York

Franklin County Coal Corp.

>

:

Company, Michigan

National Bank

affilif

Carter
-was
previously
Walston, Hoffman &
Goodwin.
Mr.
Hague
and
Mr.
Snedicor

connected

now

become

Co,, 650 South Spring Street.

&

Chronicle)

New

l

previously with Dean

was

associated

come

RAPIDS, MICH.—Cyril

'

V

-

to

has

and Howard T. Snedicor have

,

GRAND

Geggie

LOS

were

are

'

.

to

ACTIVE TRADING MARKETS

ANGELES, CALIF.—Mor^

' (Special to

;

^

Co.;
Bank

Schouten,

.V'

>

Interstate Aircraft &

Bradbury-Ames

with

CG

'

wire

Witter & Co. and Bancamerica Co.

RAPIDS, MICH.—Her4
Johnson has became asso¬

Co.

'

-

^National Terminals Corp.

.

Chronicle)

,:

R.

Geggie

with

was

8800

.

i

'

to The Financial Chronicle)

ated with Nelson Douglass & Co;,
510
South
Spring , Street.
Mr.

RapidsNational
Building/- Mr. Johnson was for4

enduring struc¬

We shall not fail."

.

i,

Chronicle)

Allen has resumed his investment

City and San Francisco all real¬
ized that world peace and secur¬

ity

he

past

'

'

FLA. —William

'

"On this

flict.

Grand

tlpon this rock

an

(Special

govern¬

their ambition

behalf of peace,

the

ciated 'with

adding that of hemispheric secur¬
ity and hemispheric solidarity in

ture.

In

bert F.

their conceptions of

.

not

the/ fu¬

liberty and constitutional

Fxnanctal

;

\,

■

:

endeavoring to

are

Field BIdg., Chicago 3
Randolph

H. Phipps is connected with Her-

& GRAND

we are not

ington,
O'Higgins

that we have weakened the

effectiveness
ean

'

does

decisively

and

;

time of crisis."

for

Chroniclrj

(Special to The Financial

I

•

forgetting the
In the spirit of Wash¬
Bolivar, San Martin and

strong

Security; Council endowed with
enough authority and strength to

'.•act
;

,

Financial

Greene & Brock.

heroic past.

'

a

ice.'

one

one peace

Francisco to- help, create

men

now, baye little cause, to
that their struggles have

been in vain.

to The

The

rick, Waddell and Co., Inc.

DAYTON, OHIO—Lawrence G.
has rejoined the staff of
Grant Brownell & Co., Winters
Bank Building.
Mr. Frantz has
recently been in the armed serv¬

past would, could they be

think

(Special to

LAKELAND,"

-

have

well, and the-great

HIDKEY& CO.

Direct

Frantz

us

.

Frenchman,

(Special

a map

we

of the

.

'peace for America,

have

we

think

:

-

Prescott,
Wright,
Snider
Company, 916 Baltimore Avenue.

OHIO —George

'

"T/J

with

international

successful

of

under

Union,

"Thus, I believe,

builded

.

L. Minning has become associated

of the

>-tv /

*

with

the past was with W. D. Gradison
& Co. and Thomson & McKinnon.

for

Sen. Tom

"wor

tern

i

.

with Harrison & Company, Union
Trust Building.
Mr. Minning in

-

the

;

-CINCINNATI,

Chronicle)

templt*

one

pillars in the

new,-worlds

d security,
d ^pointed

out that

:""..(Special to Th> Financial

coming conference will add great¬
ly to the spirit of the -unity and
harmony already developed in the

yorld peace
a n

become

.

,

of

of

'

.

purpose

the

permanent

United

Terence,
pressed

If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
-

Will

'fRepublics

peace built at San Francisco.
I have high hopes that the forth¬

the San Fran-

; Nations

Broker-Dealer Personnel Items

representatives of

American

into

*

vcisco.

O'Gara Coal 5/55

J

r

permanent
treatyregional peace machin¬
ery contemplated in the Act of
Chapultepec. Our hemisphere sys4

U.S.

a

y

•

-

„

again for the

form

tions Commit-

Delegate

October

21

•

putting

Foreign Rela¬

.

'•

convene

Senate

C tee and

"In

•

Texas,

Chairman

;ihe

Cosden Pete 5/47

Louis

\////'?.'/''.'-V^. j

}

attack.

ator Tom Con¬
„

Chicago

the Americas are to be free from

on

Sept. 17, Sen¬

nally,

Michigan Chemical

Founded 1890

testimonial dinner to Dr. Leo S. Rowe by the
JPan American Society of the United States at the Waldorf- Astoria
an

Seeger Sunbeam

.105 So.

CG

225

EAST

MASON

PHONES—Daly 5392

ST.

MILWAUKEE

Chicago: State 0933

(2), WIS.

Teletype

MI

I

Central

'

0780

Offices in Wisconsia

Eau Claire

486
„

...

La Salle St., Chicago 3, 111.

262

-

Fond du Lac

Madison

-

-

La Crosse

Wausau

Standard Stoker Co.

It's

Stores, filed a registration statement with the SEC covering proposed
issuance of 20,000 shares of cumulative convertible preferred stock

the dealers seem to be concerned

interesting situation:

an

trying to figure out how much the market is off now from a
month or two ago, but the banks, in Ohio at least, seem to be little
concerned about the market.
From a recent trip around south¬
with

Steep Rock iron
Mines Ltd.

western

otis & co.
Tower

Terminal

.

Phone

CHERRY 0260

toward

ings

the

fact

Watch, Com.

a

Sport Products

they

Whitaker Paper

as

year

a

Certificates

ing

Globe Wernicke Com.

few customers

& Pfd.

able.

even

the

CINCINNATI 2

supply of bonds with an

feel they have
surplus funds for investment,
—

buyers.
have

do

and

Engineering

some

29

Building

CLEVELAND

14

Cleveland Stock Exchange
Teletype CV 594

•.

NEW YORK 6

BROADWAY

past.

other

BIdg.
CINCINNATI

Union Cent.

CLEVELAND

Tele. CI 150

1.1

1.18

12

1.38

1.58

5

1.40

1.62
1.66

1.23

.43
.43

•

Aug. 22

1.45

1.67

1.23

1.40

1.62

1.17

July

1.22

1.42

1.02

.40

June 20

1.20

1.39

1.01

.38

16

1.19

1.35

1.02

18 E. 4th St.

trading

the

with

Webster

department of Stone &
and Blodget in Chicago.

„L';

1.34

,31

1.03

-

veterans

o

f

armed

the

i

be

t

and

.32

in

Jan.

17

1.33

1.49

Dec.

13. 1944
15

18

13

CLEVELAND, OHIO

.32

1.17

1.34

1.51

1.18

.33

1.36

1.53

1.19

.34

1.35

1.53

1.18

.35

1.32

1.50

1.14

.36

in 1946, announces

1.41

1.58

1.23

.35

a

Jan.

1, 1943

1.83

2.01

1.65

.36

Jan.

1, 1942

1.92

2.13

1.70

.43

1, 1941
1.88
1. 1940— 2.30
1, 1939
2.78

2.14

1.62

2.58

2.01

3.33

2.24

5.1, 1938— 2.98

3.42

2.55

.52

.57
1.09
.87

Index for 20 bonds
tlO
grade bonds. tlO higher grade bonds,
between highgrade and lower

•Composite

Paul H.

&

1, 1944

;

—

Co., Chicago investment
house which marks its 30th year
Davis

the opening of
Union

in the

office

Cleveland

Commerce Building.
Dean

*

;

a partner of
1939, has been
of the new office.

Francis,

D.

Cincinnati.

GILLIS|°'"°JRUSSELLC'ol

Mr.

been

has

Francis

13

for

lander

years.

a

Cleve-

'v..

■;

■

t

J; R. Johnston With

|
R.

Johnston, a member of the bond
department of the old Union Trust
Co. from 1922 to 1928, and who

Industrial Brownhoist

C. H. REITER & GO.
Cleveland

Union Trust BIdg.

14, Ohio

land

returns

after serving

the
tion

Office

in

Wire




485

to

Troster,
-

New

Currie
York

&

Summers,

Co.

in

1941'."

-

of

New

New
A

<

to

Cleve¬

three years as

administrator \ of

Price

York

with

connected
CI

employer

gation

on

and the Veterans'
There is no obli¬

the part of an employer
trainee for any spe¬

to retain the

Administra¬

City.

He was

Smith, Barney &

York

from

1933

T''

to
'L

period and should the

of any other

It

is

for

in

same

similar

and

it is

action

business

expected

.a

leading
•'

the

to

train¬

academic

as may

•

Administration.
i

;

(c) A series of lectures to be

J/given all trainees by competent
members of the industry.

of

the

NSTA

.

'

4. It is

agred that the Cleveland
Stock
Exchange will act as a
clearing house to receive veteran
applications for placement, and it
is further agreed that all dealers

this

under

registered

program

will furnish statements indicating

their employment needs.

program '

veteran
himself

of

„

the
-

afore¬

the

afford

avail

to

planned training
he embarks upon a

a

as

in

will

opportunity

an

program
career

that

believe

We

5.

going

the

securities

business.

A.

Cayne, Chairman of
the Public Relations Committee
of the Cleveland Stock Exchange,
in

calling

a

meeting

the plan, addressed

the

to

note

by all

members

to

initiate

the following

and

other

ties:

along

lines will be taken up

affiliates
come

procedure

Morton

the sponsors
first plan to.be

the securities

veterans,

that

employee.

claimed'by

that theirs is the
offered

instruction

be recommended by
the
employer and the United
States ; Government
Veterans'
ing

Administration.

case

Building.

Commerce

deputy regional
Commerce BIdg.

not

trainee
has had 20 years of experience in
prove unsatisfactory the employ¬
the security business, has become
ment may be terminated as in the
associated with McDonald & Co.,
Union

Quoted

the advantage
qualified trainee,
entirely dependent

a

upon
his position's income for
complete sustenance.
The train-*ing will consist of "on-the-job"
instruction supplemented by such
related academic training as may
be recommended and approved by

the

business.

as

retaining
is

are

be:

(b) Related

plan

employer has

who

Mr.;Johnson

1341

the

cific

ALL ISSUES

MAIN

the

named manager

CLEVELAND,. OHIO—John

Trailmobile

in

vet¬

of

"On-the-job"

objective.

to

he begins his career
securities business.
Thus

ing period

of

.

The

business.

opportunity

an

the company since

§Spread

Cayne

affords
the veteran
whose income is supplemented by
the Government during the train¬
ties

shall

and
A.

Morton

securi¬

the

the

programs

is consistent with the details

as

local positions

;

object

follows:

as

(a)

ne d

.33

!

CINCINNATI

lined

placed in

r a

the

training

To train

will

services

McDonald & Company

1020-26

Cleveland Stock Exchange

qualified applicants
in a
reasonable period
of time
through a planned program.
3. The planned
program
out¬

and

trainees

'•

•

•"'

:

1.11

Members Cincinnati Stock Exchange

of

15

members

To obtain competent person¬

2.

which

under

1.14

Union

Cleve¬

Sept.
the

to

nel for the securities

1.43

—

dated

addressed

1.

a

1.47

Sold

With

supervisor,

priorities

and

formerly

Dealers,

plan has been

1.19

—

letter

a

Dealers,

1.30

Bought

Cooperation

in

announced

Jan.

Philip Carey

a

stated

Paul H. Davis Opens

Foregoing data compiled by J. A. Whit#

.

*

Securities

grade bonds.

Drackett

for*

1461)

on page

an

and

1.27

& Co..

Organizations

Form

National

the

18

lower

(Continued

common

erans'

Jan.

CI 494

stock at the

common

Association of

as

Jan.

MA 1627

vertible into

rate of two shares of

National Association of Securities

Jan.

Cincinnati

preferred stock of $25 par
value, of Leland Electric Co. of
Dayton, O. The new stock is con¬

ciation

Oct.

Cincinnati Stock Exchange

cumulative convert¬

ible

man,

14

.

Curtiss, House

& Co. of Cleveland offered 25,000

E.

In-

Mar. 14

Jan.

♦

and

shares of 5%

In

Sep.

Inc.

G.

to

*

Co.

E. E. Parsons Jr., District Chair¬

Nov.

Members

of its

f

Feb.

W. E. FOX & CO.

was

that

&

Otis

sponsorship of the Cleveland Stock Exchange, the
Cleveland, the Cleveland Securities Traders Association

o

the

both

.33

—

1.3

since

♦

E.

Cleveland

.45

„

has

and to Cleveland members of the

i

.44

Aug. 17

SECURITIES

River

debt

of the

.40

1.19

1.44

Apr.

whose

vestment

was

"•

CINCINNATI

of debt

Rocky

Bankers Asso¬

ager,

.40%

1.18%

Aug. 29

May

two others

are

free

be

and

Berea

TOLEDO, OHIO —Leonard C.
Cooper
has
become associated
with Goshia & Co., Ohio Build¬

«

t

t

Sep.

18

will

soon

while

and

suburbs

cashier and bond trader.
Mr.
Cooper, who
has recently
been with a war plant in Chicago
as
cost accountant, credit man¬

1.38%

Sep. 19. 1945

that

other

are

the

members

Goshia & Co. in Toledo

ing,

Sep.

Tele. CV 174

Deeper With

Price Index
*

Lakewood

the

and

Municipal

Date—

Under

Bond Club of

ended.

Ohio

Field, Richards & Co.

Toledo, etc., are
usually
by the banks in Ohio
(Continued on page 1472)

words,

bonds

Cleveland

Investment Dealers Veteran Placement
Organization, Under Chairmanship of Morton A. Cayne.

bought

yields at which they would
bought a few months ago.

G.

each

Dealers

Securities

land Stock Exchange

land,

definitely

are

Local

it seems to be
like Akron, Cleve¬

large,

true that bonds

many bankers
interested in high
grade
municipals especially of
new
names,
at about the same
yields as prevailed before the war

In

and

the

went

output

the

meet

East

been whittled down sharply.

concern

and

1919

said

He

Veterans' Placement Program

.

By

and

to

when due.

Cleveland Dealers Announce

price would seem to be that the
yield be about in line with that
which has interested him in the

the bonds were available.
Naturally, a little better yield
makes the bonds the more attract¬

same

Union Com. BIdg.

cleaner

ing such a bond if he can find it,
the only requirement as to

only

in

with

city

reserve

between 40 and 50%

time

and

have

SECURITIES

founded

debt.

without

interested in buy¬

that he is still

ive, but it would seem that many,
if in fact not most, of these bank¬
ers
would
actually buy at the

OHIO

small

some

or

■

cash

outstanding

84,864

■' *

■

Auditor of
Cuyahoga
County
(Cleveland),
reports that Cleveland Heights, a
Cleveland suburb, is practically

of

,

for

Cleveland

The

but good
district, it would seem to
us from conversations with sev¬
eral
such > customers
last week,
town,
school

the

*

Zangerle,

Co.

shares of Vacuum Cleaner.

seat

lay, some other good county

of

share

one

shares

Find-

of such bonds as Columbus,

nicipals at about the same price
levels at which they have bought
such bonds in the recent past, if

INCORPORATED

-

or

apparent fact that they would be
willing to buy such suitable mu¬

WM. J. MER1CKA & CO.

about

A.

$1,028,928 in January, 1940.
at
present the city has a

sale

of

terms

*

*

..

And

pro¬

proposal, it would acquire the as¬
sets for 65,918 G. E. shares, or

it mat¬
him .whether the

to

the

Under

A,

.

the

of

has

proposed

dissolution.

Akrons due in 1952 is
1.40%. If he is a buyer

on

1.20%

because of lack of

now

little

ters

"out of

are

past few years,

won't buy Akron bonds,

yield

worthy of note is the

most

and

Members

who

even

er

funds," are still interested in see¬
ing offerings of municipals of the
type and quality in which they
have been interested in the past,

Circular on Request

Commerce

comes

periodically with most
M o s t
bankers
who
funds for
investment,

the market

Company

Union

thought

this

and

goes

the

vote«on

that the
unusual
appeal is small indeed. If a bank¬

no

and

-

the same as

today,

true

for the

now

Wellman

is

It

as

several years. Some

Tele. CI 68 A 274

Tel. Main 4884

same

with

contract

Cleveland company.

assets

Co.

200,000.
A special meeting of the Cleve¬
land company's stockholders will
be held in New York Oct. 15 to

of

usual run

the

are

that have no especial ap¬

its

was

planning

was

now has only $185,000
c--h} bonded indebtedness as compared

Cleaner

Vacuum

G. E.

as

cancel

to

The

Cleveland, for approximately $3,-

peal, even at reduced prices.

appeared to be about
they have been for

Comments

Terminal Building 'v.;

Dixie

least,

names

nicipal prices.

New York and Cincinnati
Exchanges—N. Y. Curb Assoc.

Members

Stock

at

of mu¬

course

J. Austin White

of the

.

the

all

buy

to

Electric

Ohio's

market, most of the

the

future

the

Electric

General

posed

But

municipals that have come into"

about

talked

W. D. Gradison & Co.

the bonds that are avail¬
by far most of the

ago, on

who

Pfd.

stock

the
date

effective

the

registration statement*
■

Philip Carey Com. &

the underwrit¬

offering

group

after

market
more lib¬

of

Co.

&

Merrill-Turben

two months

eral than was true

found

We

un¬

advisable

John

Cleveland head

question but that the

is off, and yields are

an

:' f:-

'."V

name.

tified stockholders the sale
:

profits and cash

broken record of

There is

moderate extent.

a

no

;V;

ago.

Land Trust

to

two

or

has

company

dividends.

and, of course, they have been
successful in doing so, at least

same

d e

u

Since its incorporation in

the

1928,

cheaper—

bonds

buy

81 /retail

the present

to

outlets.

Moreover,
have
their price ideas in an

to

effort

Director Maynard H. Murch no¬

panded

of the larger buyers

reduced

lat-

the

under

'/r Chairman Julius Tuteur and

ter's

1928, Gray Drug has steadily ex¬

concession

a

edge off the market.

in

had

11 it

is

some

month

a

two ago,

or

Gruen

m u-

as

had

a

sold

was

in

the original six stores

From

in price.
This fact necessarily takes the

offer¬
they

nicipal

to
suitable offering unless

there

attitude

same

Cleveland 13, O.
Bell Teletype
CV 496-497

buy

the

had

1889

which

Teath, Inc., operators of a chain
of 27 drug stores in Pennsylvania
and New York.
v £ ••

buyers ex¬

some

,

used to retire indebtedness incurred in the
acquisition of Widmann &*>-

recent

cept better yields, and refuse

least

at

Ohio

Admittedly,

of

balance

—

t

company

total of $570,000 will be

found that by far most of the bankers in that section
assume the same thoughts would prevail with
■'/. bankers in the «*

;

■/.:
V.j''•< '
said of the approximately $1,000,000 proceeds, a

value.

par

The

we

(Incorporated)
ESTABLISHED

of $50

of the state—and we

Request

Memorandums on

Ohio,

formerly Weinberger Drug

Gray Drug Stores, Inc., of Cleveland,

'"va.

'

WHITE

By J. AUSTIN

Ohio Brevities

Comment ||

Ohio Municipal

U. S. Truck Lines, Inc.

Thursday, September 27, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1460

and be¬

nation-wide, program.

We

are

all

aware

(Continued

of the

on page

par¬

neces-

1469)

Volume 162

THE COMMERCIAL & FINANCIAL

Number 4424

made

Ohio Bievifties

of

each

of

for

share

preferred

five

and at the rate of five shares

for each three pre¬

common,

ferred

shares

the

years.

Manufacturers of

for

electric

motors

ranging up to 5 h.p. the
company has its main plant at
Dayton
and
a
subsidiary
at
Guelph, Ont. The Canadian plant
produces practically all the gaso¬
line pump motors sold in Canada.
j-

,

■/

: '

'

■

J*1'

9

■

1966, inclusive. They were reofprices to yield from 0.70
to 1.65%, according to maturity.
fered at

#

National

City

Bank of Cleve¬
land submitted the top bid of par
and $651 premium for lV^s for
$100,000 Shaker Heights series P
refunding bonds. The proceeds
would be used to redeem

a

lar

coupon

of

amount

higher

simi¬

*

The employees will meet at
thelplant this week to vote com¬

authorization

pany

to

chase the stock which
at

$100

share.

per

repur¬

sold

was

The

stock,

President William S. Jack said,
is

held

under

agreement

voting

trust

that two-thirds

and

of the class A holders must ap¬

the plan,

prove

\ Class

will

also

"at

such price as the of¬
determine" but not in
of the $100 par value for

excess

each

share.
:.• ;■

•

,

Metropolitan Paving Brick Co
Canton, informed holders of
the
company's 750 outstanding
of

7%

;

take

to

callable

cumulative

next Jan.

pre¬

1

at $201

a

share, including $91 dividend ar¬
rearages. Redemption agent is the
Harter Bank & Trust Co., Canton.
'■

9

*

Three

James

Co.

his

on

a

director.

Holan, who founded the

continues

Greiner has

Mr.

Treasurer.

as

acquired

a

substantial

interest in the concern.

:

;

7

.

American

the

new

A.

manager

is

Hornaday

of national ac¬

Steel

ident

of

onel

President
He

of

recently

Far

East

will

quarters
Cleveland.
former i

.

■
.

continue
.

to

be

has

been

for

most

of

staff

of

MacArthurr

dressograph

-

.

Multigraph

Corp.

advanced four of its sales
.

.

B. J.

.

execu¬

Stone is assist¬

ant sales manager of the Addressograph division, T. H. White in
the same post with the Multigraph division, Albert F. Wike

statement,

a

of

de¬

specialized in

to

individuals,

a

The

dealers

listed

in

Wharton

and

World

War

I

while, at¬

tending high school, and was in
the Argonne and St. Mihiel. He
graduated from the IL S. Military

Academy at West Point in 1922.-

;

and
.

.

Sales

is

now

eral

as

Vice-President and gen¬

Colonel Tappan joined the serv¬
ice as a Captain in July, 1942. He

ganization for officers and
ployees and
is active in

Vice-President

Co.'s

and

gen¬

of Ohio Bell Tele¬
northeastern

Greene

•

area

Stephens,

succeeds
now

Franklin

President

',*''7.'';".:.'" *

'/*

assume

in

of the

at

Wright
shipped to

Colonel

and

this

full

a

year.

Mexican

in

Colonel

in

served

on

He

border

^

the fall

in

World

War I.

Kansas

veteran of the

first World War, was manager of

stoire.

Wood

City district of the OPA

Federalv; Reserve

served

♦

The
.

K

firms

*

..

is Harry Morine,

of

the

This is under

Co.'s

&

participation

amounted to

Morine

is

Cleveland

Valve

member

a

Chamber

of

Co.

circumstances to be construed

district,

Presi¬

dent Ray M. Gidney of the Cleve¬

as an

&

First

and

had

A

and

club

providing a $2,000,000 loan to
Maguire Industries, Inc., to in¬
crease
the
company's
working
capital for peacetime operations
and acquisition of companies with
peacetime
earnings,
President
Russell Maguire announced.
Savirjgs Bank oi
participating to the
extent of $1,600,000 with the Mer¬
cantile Bank of Dallas, providing
the remainder.
The company's
oil properties in Texas and Kan¬
sas were pledged as security.
The
Society

for

ident;
and

G.

B.

White,

Courtney

offering of these Debentures for sale,

or as an

;/V;

will be 4%

interest rate
be

to

and Telegraph Company

Thirty Year 2 Vi% Debentures
Dated October 1,1945

•

'

.

Interest

payable April 1 and October 1 in New York City.

with the

repaid in three

100Vi%and Accrued Interest

Price

years

by monthly payments.
9

9

9

Shareholders, of Tappan
Co.,

Mansfield,

of

five-for-four

split

pany's stock
share

new

O.,

on

of

Stove

voted

the

the basis of

for

each

a

com¬

four

one

held.

Copies of the Prospectus may be obtained from only such of the undersigned as may legally offer
these Debentures
in
compliance with the securities laws of the respective States,

The company

issued an additional
31,562 y2 shares, increasing
the
total
outstanding
to
157,812^

MORGAN STANLEY & CO.

shares.

Stockholders
Co.

of

week

of

Cleveland

Ward
will

Baking

meet

to take action on a

plan of

Board Chairman
Russell reported.
*

*

;

Clark

& Co. and

.

was

suburb

WEBSTER AND BLODGET

STONE &

SMITH, BARNEY & CO.

including Na¬

awarded

■r

.

,

F. S. MOSELEY & CO.

$600,000

stated the

project

PAINE, WEBBER, JACKSON & CURTIS
DREXEL & CO.

waters polluted by steel and

other

help purify the lower reaches of
the river.

The bonds will mature $30,000
annually from Dec. 1, 1947, to

DEAN WITTER & CO.

HARRIS, HALL & COMPANY

WHITE, WELD & CO.

CO.

HEMPHILL,

(Incorporated)

HORNBLOWER & WEEKS

industries into sewers in order to




.Incorporated

l!

LEE HIGGINSON CORPORATION

includes diverting Cuyahoga river

*

*

W. E. HUTTON & CO.

A. G. BECKER & CO.

UNION SECURITIES CORPORATION

Bank of Cleveland,

Cuyahoga
Heights
Cuyahoga
River purification 1%% bonds
on a bid of 101.53.
The

v

incorporated

and Stranahan, Harris & Co., of

Toledo,

Incorporated

LAZARD FRERES & CO.

KIDDER, PEABODY & CO.

HARRIMAN RIPLEY & CO.

♦

A syndicate headed by Fahey,

tional City

GOLDMAN, SACHS & CO.

BOSTON CORPORATION

this

reorganization,
Faris R.

THE FIRST

BLYTH & CO., INC.

September $5,1945.

the

are.

Secretary,

W.

Treasurer.

is

Cleveland

loan

American Telephone

Co.

Com¬

officers

bank

are

of

Vice-President;
Harry West, Second Vice-Pres¬

Corp.

Texas

■■

Webb,

$160,000,000

Cleveland

.

the

new

Elmer

offer to buy; or as a solicitation of an offer to buy, any of such Debentures,
The offer is made only by means of the Prospectus..

$100,000.

..

Other

$150,000

Cleveland

.

Cleveland Athletic Club,
Club, and the ; Shrine.

$4,000,000; Wm. J.

Mericka

,

no

.....

of

Vice-President

Powell

Wm.

were

bonds.

the

Cleveland Sales Executive Club

Halsey, Stuart &
which offered $75,-

group

or¬

em¬

Commerce.

President

new

the

on

Rotary

*

V

has

Junior Chamber of

merce,
*

Fred O. Kiel, economist of the
for the last year, has become in¬
dustrial economist in the Fourth

Bankers Trust Co. of New York.
a

1943

of

of the

charge

stationed

Lieutenant

the position of

credit department

Colonel Kyle,

a

the

Kyle

of the Tappan Stove

Field, Dayton, being
England late in 1942 where he
was
made a Major.
He became

March

| ' Colonel William Harvey
will

first

was

of

Wisconsin Telephone Co.8.

consumer

duties

bank's educational and social

succeeding John A. Greene, pro¬
to
operating Vice-Presi¬

;

Wood, formerly First Viceof
the
chapter, was
named to succeed F. J. Blake,who
resigned
his
Federal
Reserve
Bank
post* to join Sterling &
Welch Co., Cleveland department

Co. of Mansfield.

moted

dent.

for many years.

Training

manager

phone

Cleveland, now
presides over the Cleveland Chap¬
ter, American Institute of Bank¬
ing, in which he has been active

eral manager

department.
Leroy E. Lattin, Cleveland,

.

Central

of

National Bank of

*

'

<■

and

Penn¬

Mr.

Tappan who has resumed his old

new

Wood

of

President

Addresso-

the

econo¬

Finance

University
H.

Wallace
en¬

of

School

Commerce,
sylvania.

significant part in

reconversion

industrial

former

mist, Orin E. Burley, resigned to
become professor of marketing at

His election

post-war business."
The
new
Vice-President

appointment^, Mr. Gidney
to carry on an expanded
of research and public

are

relations in the fourth district.

bank

graph Methods and Sales Train¬
ing department, and R. A. Dooley,

of

ice since 1932.

program

Another Ohio industrialist back
from the wars is Colonel Alan P.

manager

has been with Ohio State Univer¬

said,

"Prior to the war, Col¬

play such
financing

Ad-

.

Colt

inaugurates Bankers Trust Co.'s
entry into this field which will

ZVz

General
.

Sloan

and small business.

procurement,
reciprocal lend-

and

the

on

Douglas

C. T. Gilchrist,

Clevelander,

Railroad.

S.

in

Kyle

credit

back from the

came

world's

His head¬

Erie

Vice-

headed

lend-lease
lease

the

where

he

elected

was

bank,

an¬

sity Agricultural Extension Serv¬
The

clared;

Cleveland,

the

bank

pointment of Claude I. Hummel
agricultural specialist. Hummel

medal..
President

Reserve

as

He had been serving as aide to
Secretary of War Stimson and is
the holder of the Legion of Merit

Brigadier General P. W. Johnston
of

Army

April, 1942.

Jersey Council of
Electrical Leagues since 1942....

soon

varnishes.

Co.

New

Vice-President

largest manufacturers of

Wire

&

lighting and germicidal fixture
manufacturer. He has been Pres¬

counts for Sherwin-Williams Co.,

paints and

also Chicago,

.

M.

MORE NEW FACES IN HIGH

PLACES—John

sales,

Federal

a

000,000 Great Northern Railway

Otis

duties

new

business, moves up from the pres¬
idency to Chairman of the Board
and

nounced. Gidney also reported ap¬

9

Cleveland

members of

over $1,000,President.

He also becomes

ferred stock that the shares would
be

a new

He is Allen T. Greiner, a 40year-old engineer from Salem, O.,
who
has
resigned
as
General
Manager of Salem Engineering

(

of

shares

reported valued

;

«

v■'7

■

now

company

of

Henry G. Clum is sales man¬
ager for Art Metal Co., Cleveland

.

tives.

Cleveland

000, is to get

be

ficers may

*

American Coach & Body Co., a

Oct. 1.

holders

A

*

37-year-old

Co.,

r,

asked to approve a company res¬
olution allowing repurchase of the
shares

Sutherland
&
Co.
of
Toledo bid $637 premium; Wm. J.
Mericka $444.44; Halsey, Stuart
$427, and Braun, Bosworth, To¬
ledo, $333.
Ryan,

funds.

reserve

land

partment of the Cleveland Trust
in

years

,

the personal loan and finance de¬
Co. when he re-entered the

for

bonds.

Management of Jack & Heintz,
Inc., is planning to repurchase
from present and former employ¬
ees 105,912 class A shares sold to
them by the company to provide

general manager
Chicago and ~H. A.

in

President

~

five

next

assistant

sales

1461

Squibbs is assistant to the Vice-

(Continued from page 1460)

years

CHRONICLE

R. W. PRESSPRICH &

CO.

Turney,

Thursday, September 27,

FINANCIAL CHRONICLE

THE COMMERCIAL &

1462

Seaboard Railway

Railroad Securities in Peace Time

Republic Pictures
Corporation

Company

Chicago, Milwaukee,

Denver & Rio Grande

St. Paul & Pacific R. fc

Western R. R. Co.

Chicago, Rock Island &
Pacific Railway Co.

Chicago, Indianapolis &
Louisville Railway Co.

by Patrick B. McGinnis

An Address

i Copies .on WRITTEN request

losses in the above

We will discount profits and assume
'

1965

Debenture Income 4s,

"when issued"

pflugfelder, bamft0n & rust
;■

Common

Stock Exchange

York

New

Members

Preferred

61 Broadway

;

-

1 •

,

contracts

,

SUTRO BROS. & CO.

New York 6

Bell Teletype—NY 1-310

Telephone—DIgby 4-4933

1945

Members New York Stock Exchange
120 BROADWAY, NEW

(When as and if issued)

YORK 5, N. Y.

Telephone REctor 2-7340

Railroad Securities
The

in

change

of the proposed new

prospective nature

the

Chesapeake & Ohio preferred stock has put a somewhat different
complexion on the contemplated merger (or consolidation) of this
road with its affiliates, Pere Marquette, Nickel Plate and Wheeling
& Lake Erie.
It is now proposed that the new Chesapeake & Ohio

preferred would carry a dividend rate of $3.50 a share and be con¬
& Ohio *
in the ratio of 1.6 shares for each at the recent price of 55 the buyer
share of preferred, the equivalent of Nickel Plate preferred would
creating the new preferred
of approximately 62% for Chesa¬ be
peake & Ohio common.
One of stock at a price of 91. On a simi¬
lar basis purchasers of Pere Mar¬
the weaknesses. is that the pre¬
ferred would be callable at 105 so quette prior preference stock at
vertible into Chesapeake

{.

MEMBERS

:

York

New

Stock

Exchange

and

other

leading Security and Commodity Exchs.

New York5,N.Y.

.120 Broadway,

Chicago 4, 111,

LaSalle St.,

So.

231

that at least theoretically

holders

deprived of their
participation in the potential rise
could readily be

in the value of the common

Specialists in

This weakness could be

stock.

removed

by the simple process of

making
period

Selected

-

'''

'V

•'

all

Situations at

the

New York 4, N. Y.

>

Smith Barney Offers

Armstrong Cork Md.
Smith,
Barney & Co., Kidder, Peabody &
Co., and Mellon Securities Corp.
Cork

underwrote

Co.'s

recent

stockholders

of

Armstrong

offerings

a

new

to

issue

shares

of

on

were

subscribed for by holders of sub¬

scription
shares

the

warrants

were

45,076

taken in exchange

holders of

4%

* and;

the

cumulative

ferred stock.

by

company's old

convertible

pre¬

Subscription rights

and the

exchange offer expired at

3 p. m.

(EWT), Sept. 25.

The

underwriters

are

:

-

••

purchas¬

ing the balance of 107,620 shares
not subscribed for

change and

are

or

taken in

ex¬

publicly offering

these shares at the public

offering

in this group which has appar¬
ently ^voiced the strongest objec¬
tions to the plan.

Plate

pf the - preferred be¬

valuable,

comes

Taking

preferred at

Nickel

plan is consummated it is
likely to be under less

now

higher which would reduce the
potential cost of the new preferred
to present buyers of the old pre¬
ferreds.
As against the low price

that such

at

considerable

a

premium

over

of the old preferred
working on the further

Buyers
stocks

are

does

settle this claim in full.

the actual

With

an

indicated $1.50 to $2.00 a share to
be addqd to C. & O. common earn¬

ings there are a number of an¬
alysts who consider this well
within the realm of possibility in
a

strong preferred with
feature would sell

a

conversion

a

including dividend accumulations
through the first half of 1945
would be for $184. It would there¬
fore take a price of 80 for the
Chesapeake & Ohio common to

With

least,

chances

apparently, ? at
moderately improved for

a

consummation

of

the

consolidation there has

considerable

acceleration

of real investment interest in the

ally

of eventu¬

creating

the new preferred
prices. Nickel Plate
preferred has been selling around
129%.* Taking C. & O; common

Southwestern
'

'

1st & Kef.

Moreover,

cloaks.

neutral

the- Germany industrialists
pro¬
vided posts for Nazi spies abroad.

conspicuous case is IG Farben.
Though we have taken this con¬
cern
over, we have not demili¬
A

tarized its
The

war

potential.
problem

haven

safe

basic

Thus the Farben's Swiss
company
still sur¬
vives.
The military, recognizing
the weaknesses created on Sept. 12
under
Colonel
Bernard
Bern¬
stein's
decision ; to
investigate
German
economic
concentratior
still unsolved.

is

foreign assets, but a mere in¬
vestigation
is
believed
to
be

and

fruitless

German

the

if

third

Many

war.

cases

Latin American dummies of

the

general belief that the offer

adequately provide for

not

value of the

claims of

Under such

old stocks.

con¬

ditions the

assumption is that the
market would put a higher eval¬
uation on the old preferred stocks.

William

Judge Heads
Dept. for Valentine
John

H.

Valentine.

Broadway, New York
William

Co.,

City,

that

E.

po¬

war

tential is permitted to survive for

Swiss

Swedish,

j o!

and
Ger¬

man companies are being conclu¬
sively unearthed in Frankfort. The
Allies are relying on diplomacy

to

Potsdam

the

to

business

men

flying

Britain will face
outlook pending the in¬

to Europe and to
a

chaotic

determinate resumption of

an¬

Judge

airlines.
its

at the end
men:

at

civilian

When ATC discontinues

traffic
of September business

intraeuropean

revenue

Embassies

Company
First Refunding Mortgage

?

Due

have

become

virtually valueless here, and busi¬
as
manager of the trading de¬ ness'men contemplating flying to
partment. Mr. Judge was previ¬ this side of London should stay
home until the situation clarifies.
ously with Bonner & Bonner* < •

Gold Bonds

that, In ac¬
cordance with the terms of the said Bonds
and of the First Refunding Mortgage dated
January 3, 1905, executed by Southern Pa¬
cific Railroad Company and Southern Pacifies
Company to The Equitable Trust Company
of
New
York,' as Trustee
(under which
Mortgage The Chase National Bank of the
City of New York is now Successor Trustee),-'
Southern
Pacific
Railroad. Company has
elected to exercise its right to redeem, and
will pay and redeem on January 1; 1946, all
of the Southern Pacific Railroad Company
First Refunding Mortgage Gold Bonds, due
January 1, 1955, outstanding under and se¬
cured by said First Refunding Mortgage at
105 per cent, of the face value thereof, with
accrued interest thereon to January 1, 1946.
<
On January 1, 1946, there shall become
and be due and payable upon all of said
Bonds, at the agency of the Railroad Com¬
pany, namely, The Chase National Bank of
the City of New York, Successor Trustee
under said Mortgage, 11 Broad Street, NewYork 15, New York, the principal thereof,together with accrued interest thereon to
January 1, 1946, and a premium of five per
cent.
(5%) upon the face value of said
Bonds.
From
and after such redemption
date of January 1, 1946, all interest on said
Bonds shall cease to accrue, and the cou¬
pons
for interest maturing subsequent to
said date shall be and become void.
Holders
and
registered
owners
of the
above-described Bonds should present and
surrender them for redemption and pay¬
ment as aforesaid on or after January 1,
1946, at said agency of the Railroad Com¬
pany, with, in the case of coupon Bonds, all
coupons maturing subsequent to January l,x
1946,
attached.
Coupons due January 1,
1946,
may
accompany said
Bonds when
presented for payment or may be presented
for payment in the usual course.
In the
base of registered Bonds, where payment te
anyone other .than the registered holder is
desiredi- the Bonds should be accompanied
by proper instruments of assignment and
•

transfer

-

7.-j-

v/ v».- r *1--

By J. a.

bated:

SIMPSON, Treasurer,

September 26,1945.,

PREPAYMENT

j

Holders

and

above-described

PRIVILEGE.
owners of the
to leceive

registered
Bonds

desiring

prior to the redemption date payment of
the full redemption price
(including pre¬
mium and accrued interest to January 1,

1946),

may

do

so

upon

presentation and

the manner pre-y
foregoing notice,
at The
Bank of the City of New

surrender of said Bonds in
scribed
Chase

the

in

National

York, 11 Broad Street, New York 15,
York, the agency of the ttndersigned.
!
SOUTHERN PACIFIC RAILROAD

COMPANY,
By J. A.

V

railroads in

KEYES FIBRE

5s, 1965

,

•

:

.

v

.r

i

•

-

-

■

Circular

-

|

[

upon

.~\

request

EXPRESO AEREO
Mclaughlin, baird & reuss

Adams & Peck
63

Wall

Street, New York 5

BOwiing Green 9-8120
Boston

Tele. NY 1-724

Philadelphia

Hartford




.•v^:

1. h. rothchild &
Member

of

co.

of National Association
Securities Dealers, Inc.

52

wall

street

HAnover 2-9072

St.

y.

0.5

tele. NY 1-1293

Members New York Stock Exchange

ONE WALL STREET
TEL.

HANOVER 2-1355

'

New
«,

-

s

SIMPSON, Treasurer.1:

the reconversion period

Class A and Common

*

PACIFIC RAILROAD
COMPANY,

SOUTHERN

•

7

-

January 1, 1955.

NOTICE IS HEREBY GIVEN

haven

pronouncement, but some Amer¬
ican diplomats will need Wash¬
ington prodding.
\
American

50

REDEMPTION

Holders and Registered
Owners ot

Southern Pacific Railroad

;

imple¬

safe

neutrals

persuade

ment

Railroad

!

often

other foreign concerns

to the

nounce#

means

stock at low

:;

of Nazis and a
reciprocal - reward / in industrial
loot, including shares in American

American,

has become associated with them

a

includes; the in¬

which

dustrial, support

a

preferreds

El. Paso

!

covered

summated the failure will be due

Nickel Plate and P.ere Marquette
as

and
outside Ger¬
Evidence j has been un¬

domestically
many.

theory that if the plan is not con¬

reasonable time.

been
J

those

rather than

par,

call price of 110, their full claim

merger or

'

If the

Under the plan Nickel Plate
preferred is Offered one share of
at which the stock can theoretical¬
preferred and 7/10 shares of C. &
O. common, or the equivalent of ly be created it is generally agreed

successful

price of $102.75 each. ~

!

preferred, at recent prices of 88
would potentially be creating the
new C. & O. preferred at 82%.

under

conversion

announced

8,826

having been declared by the
directors last week.
Finally, pur¬
chasers of
the Pere Marquette
tion

and

2.3 shares of C. & O. common if

that

of

prevailing or
with
Chesapeake & Ohio common sell¬
ing below recent price levels. On
the contrary, if the plan is to be
consummated
it
is
likely that
Chesapeake & Ohio common will
have to be selling considerably

preferred
Sept.; 26

spring

'

investigations
ol
western
Germany have verifiec
the conviction of the intimate col¬
laboration of German industries
with the Nazi Wehrmacht, both

the

American

hardly

161,522 shares of $3.75 cumulative
stock,

.

To

for security,

the Allies there to

pressing

take action.
.

OF

NOTICE

The Russians, domi¬

nated with the desire

favorable market conditions than

Nickel Plate preferred holders. It

The syndicate headed by

which

stocks to make

the

1945, the third quarterly distribu¬

transportation are avail¬

there.

however, that the increased earn¬

Teletype NY 1-1063

,

Mar¬

Pere

or

in

resumed

were

stock

recreation

industry, once

of the German war

ings that would accrue to Chesa¬
peake & Ohio in merger will bring
a
Sufficient market 'rise in. the
share in the interim before stock¬
holders will vote on the plan to
make the terms palatable even to

Telephone BOwiing Green 9-6400

;

Plate

acceptance of the terms by stock¬
holders feasible.
It is possible,

INCORPORATED

;

Nickel

quette preferred

qUARAWTEEP «AILK0AD STOCKS-BONDS

25 Broad Street

today the

change in the provisions of the
preferred stock, giving it a con¬
version
option, does not suffi¬
ciently improve the treatment of

Times

Dividends at the regular
the prior preference

on

Americans deplore the possibility of the

their zone, some

able

deindustrializingj

While the Russians are

machinery beneath.

the

are

rate

As the market stands
:'-•?■,

is reliably learned here that Ger¬
concentrated in the west was not
materially destroyed by bombings. Industrial damage was principally
confined to the easily repaired buildings, while debris often protected
PARIS, FRANCE, Sept. 25.—It

many's war potential which was

current income on the stock pur¬

chased.

j

(Special Cable to "The Chronicle")

coal and

the stock non-callable for a

SECURITIES

would be

109%

Germany's War Potential

paying the equivalent of 91% for
the new Chesapeake & Ohio pre¬
ferred.
In this instance there is
the added advantage of getting

of years.

RAILROAD

of

levels

recent

I

:

NEW YORK 5

j

TELETYPE NY 1-2155

1463

*

on

Broker-Dealer

British Election

New School for Social Research Hears Views

on

Effects of Labor

Personnel Items

Party's

Rukeyser Ascribes Labor's Victory to War Weariness and
Warns That Britain's Precarious Finances Are Inconsistent With a Vast
A

at

lively controversy

stirred up on

was

the implications of the British elections

over

(Special

to

The

Financial

NEPTUNE

F.

Alan

Tuesday evening, Sept. 25, by opposing speakers

(Continued from
for the

(Continued from page 1459)

Victory.

Scheme of Investment. A. Wilfred May Presides Over Proceedings,

Sees $8 Billion Income Drop

if
i|

BEACH,

Pike

has

/

?

the staff of Merrill Lynch,

FLA.—
Pierce,

Fenner & Beane.

dinner-forum held under the auspices of the Associate Members
at the New School for Social Research.
*

:

a

,

,

I

,

Sir Norman

Member

Angell, Nobel Peace Prize winner and former Labor
Parliament, delivered the principal address which is

of

crease

.(Special to The Financial Chronicle)'

hxiii

concentrated in three fields

—manufacturers'

JbUi/icH,

UJUJC*

Hfalford

W.

Dupree

is

first

spending began in 1940.
At the start of that year, total
income
payments were slightly
below $80 billion.
Starting with
1940, they rose 23% a year for
four years, with most of the in¬

added to

been

the

defense

,

pay

with Thomson & McKinnon.
creditor cannot

close

our

eyes

At the

to

Other speakers included Dr. J.
Raymond
Walsh, Director,
De¬
partment of Research, CIO Polit¬
Action

Dr.

Alvin

the

New

Committee, and Redvers Opie, economic adviser to the
British Embassy in Washington.

chairman

Johnson, President of
School, introduced the
of

the evening,

Mr. A.
Following the ad¬
a
general dis¬
cussion lead by Henry Hazlitt of
Wilfred

dresses

May.

there

was

NEW

Roland

Robinson,

member

of

Parlia¬

ment
'

A. Wilfred May

Merryle S. Rukeyser

for Blackpool, and Elisha
Friedman, economist and author.

to

The

Financial

Chronicle)

:.j

HAVEN, CONN.—Edward

with Ckas. W. Scranton & Co., 209

!

Church Street.

it did not enter
(Special Io*The Financial

Chronicle)

the pattern

similar decline.

a

Military payments kept on grow¬
ing, and since they rose faster
than manufacturers' pay rolls de¬

!

•

SAN

FRANCISCO,
CALIF.—
Adrian W., Miles has joined th£
staff of First California Company,

clined the total volume of income

300

payments kept on going up until
early this year.
;
>

Montgomery Street.

^

New York "Times"; Chaim
Raphael, noted British economist;
Conservative

1943

Manufacturers'
pay rolls leveled off and then be¬
gan in decline slowly, even though
the peak of the war effort had
just been reached.
Agricultural
income also leveled
off, though

Rudden has become associated

J.

the

Commander

of

began to change.

(Special

ical

end

When the

(Special to The Financial Chronicle) ./• '

was

SAN

FRANCISCO,

CALIF.—

Swift

Street,

&

Co.,

490

.

ended the effect

drastically in

most

manufacturers' pay rolls.

Andrew W. Lerios is with Henry
F.

war

first and

pay

California

rolls of

Military
began to drop,

course

but this drop was offset to a large
extent by mustering-out pay. But

y

the decline in manufacturers' pay

covered elsewhere in this issue of

The "Chronicle," page 1453.

.

Merryle Stanley Rukeyser, ecoriomic

•

New

for the

commentator

"Journal - American"
International News Service,

York

•

-another speaker.
the vagaries of
the

and
was

He asserted that
the

of
raised

program

British

Labor
Party
questions in the minds of Ameri¬
cans

to

as

what

we

being

were

asked to finance.

•

"At a time," Mr. Rukeyser de¬
clared, "when the British Finan¬
cial
Mission, headed by Lord
Keynes is seeking over here an
advance of. $3,000,000,000 to $6,000,000,000 on the ground that
Britain's finances are in a pre¬

Li-Col. Charles J. Hodge, with
the army since 1940, has returned
to Glore, Forgan & Co., 40 Wall
Street, New York City, members
of the New York Stock Exchange,
as
manager
of their sales and
trading departments, v As Com¬

SAN

FRANCISCO,

II.

Mr.

265

for

the

majority party in
Britain to be embarking on a vast
scheme of investment by the Ex¬
chequer in home industries now
privately owned. To do so will
the

the

risks

and

Exchequer

(Special to The Financial Chronicle)

tries, by and large, pay better than,
peace industries. In addition, war
brought extensive overtime pay¬

ments; the 40-hour week gave way
to something which, on average,
much closer to 48 hours.

was

But

the

with

whole

coming

high-wage to low-wage in¬
At the same time, the

dustries.

work week is being re¬

pre-war

stored.

These

would

cut

factors

two

by about one-third, even if
the total volume of manufactur¬

remained

employment

ing

But

same.

the

volume

total

the

tries.

1

•

All

in

all, therefore, a sharp
drop in income payments, cen¬
tered in the manufacturing field,
is under way. Hand-in-hand with
this drop is coming a drop in mil¬
•

itary
to

rolls. - Offsetting both,
extent, will be expanded

pay

some

veterans' benefits, and unemploy-t
ment compensation.

Normally, the anticipated 8 bil¬
drop in income payments
have
had
a
depressing

lion

would

effect

the result in the

increase

rise in

T

i

"

"

on

retail

in

the

elections

British

"War

exhaustion

the

left

has

British Isles with acute economic

,

The issuance and sale

expressing war weariness as
as
ideological preferences.

well

In the

em¬

sion of retail trade to

0] these Bonds

*

are

such

as

on

coal.

long as
are

incomje and employment,
' • V'y*'

curtailed.

if

ft

-

7

Company |

-

■?■'*y"?:;

-• •

Due October

I, 1990

subject to authorization by the Interstate Commerce Commission

opinion oj Counsel jor the Company, the Series B Bonds will be legal investments for savings banks under the
of the States of California, Maine, Massachusetts, New Hampshire, New Jersey, New York, Ohio "
and Rhode Island, and for savings banks organized under the general laws of Pennsylvania.

sick in¬

But

Price j04%

such

legalistic changes are not enough.
Important technological changes
to raise the productivity of the
British miner
'

are

The

indicated."

assume," Mr.
Rukeyser continued, "that the So¬
cialist label, on the one hand, or
money manipulation and subsidies,
such

as

the

Lord

Keynes

will

other,

term

British

there

should

new

solvency.
a
businesslike

be

orientation.

A

BLAIR & CO., INC.

BEAR, STEARNS & CO.

1

OTIS &. CO.

< R. W. PRESSPRICH

(INCORPORATED)

& CO,

«

fundamental

blueprint for reconstruc¬
be prepared.
Instead
dodging the basic issues, the

of

HALSEY, STUART & CO. INC.

assure

national
tion

Offering Circular may be obtained in any Sfate in which this announcement is circulatedfrom
0} the undersigned and other dealers as may lawfully offer these securities in such Slate.

advocates,

longInstead

and accrued interest,

only such

"It is frivolous to

on

should

British should objectively face

the
popula¬
and of fur¬
agriculture,
lines advo¬
Party in its
"The Land

L. F. ROTHSCHILD &

COJ SCHOELLKOPF, HUTTON & POMEROY, INC.

VV. C. LANGLEY & CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE

E. H. ROLLINS & SONS
~

INCORPORATED

WERTKEIM & CO.

need of exporting surplus
tion

on

the

one

hand,

ther cultivating home

the

other,

along
cated by the Liberal
classic study entitled
on

BURR

& COMPANY, INC.

RKARRIS, HALL &. COMPANY
i RUB.&

COFFIN
INCORPORATED

SPENCER TRASK & CO.

i

>

|

(INCORPORATED)

PUTNAM & CO.
.

AUCHINCLOSS, PARKER & REDPATH

\-

GREGORY & SON
INCORPORATED

and the Nation."
"As
not

a

good neighbor,

meddle

in

we

British

should

"However, if politics bear direct¬

ly on Britain's prospective capac¬
ity to honor newly incurred fi¬
nancial
commitnjents, we as a




BAKER, WEEKS & HARDEN

R. L. DAY &. CO.

GRAHAM, PARSONS &. CO.

internal

politics," Mr. Rukeyser concluded.

full-em¬

a

capism through the device of put¬

ting the Socialist label

GREEN, ELLIS & ANDERSON
September 27, 1945

the

ployment level will be delayed as

laws

problems," he said, "Rather than
face
the
hard
realities,
there
.doubtless was an attempt at es¬

dustries

For

trade.

immediate

According to Mr. Rukeyser the
voters

is

going down too, even though some
of it is being offset by expansion
of employment in service indus¬

Refunding Mortgage 3% Bonds, Series B
'

the

long-wanted goods which are now
beginning to appear on the mar¬
ket. On the other hand, expan¬

of

Union Pacific Railroad
Dated October I, 1945

pay

rolls

$81,602,000

hazards

alone

manufacturers'

I

Certainly, from the standpoint of
the predictable receipts and ex¬
penditures of the British Govern¬
ment, the impending socialization
program does not make Britain a
more
inviting place for foreign

were

of peace

has gone into
The shifts are occurring

reverse.

from

the

process

-"St'
*

re¬

indus¬

hoprs, over-time pay and the war¬
time shift from low-wage to highwage industries.

half

TOLEDO, OHIO — George L.
Another way of saying the same
Cavalry Squadron (Essex Troop),
Case is with Slay ton & Company,
thing is to point out that there
Lt.-Col.
Hodge served
in the
North
African, Italian, French Inc., Ill North Fourth Street, St. would have been a heavy increase
in manufacturers' pay rolls" £ven
and German campaigns.
Louis, Mo.

assumes.

investment."

war

future, however, no
such effect is likely to be noticed,
since it will be overshadowed by
the rush
of consumers to buy

was

viously with Stone & Youngberg.

new

increase
which

manufac¬

The

same.

ployment and in basic wage rates.
The, other half was due to "longer

Montgomery

117th Mechanized

mander of the

because of the reasons

so

Roughly

Easterling was pre¬

carious state, it seems inconsistent
'

-

This is

Easterling have become

Goodwin,

Street.

for sometime to

for the original rise in
turers' pay rolls.

connected with Walston, Hoffman
&

on

mained the

come.

CALIF.-i

William E. DeWitt Jr., and Law¬
rence

will go

rolls

(Special to The Financial Chronicle)

Hodge Returns to Desk
it Giore, Forgan Co.

manufacturing industries had

rolls, agri-

JJ'JLAJ— icultufal
income, and payments by
connected
the military.

such relevant factors."

1454)

whole has rf the number of workers in the

a

since

tremendous

been

Chronicle)

as

economy

in Last Half of '45

page

KEAN,TAYLOR & CO.

E. M.NEWTON & COMPANY

27, 1945

Thursday, September

FINANCIAL CHRONICLE

THE COMMERCIAL &

1464

NATIONAL BANK
PRIMARY MARKETS

Active

trading markets maintained in

STOCKS

BANK and INSURANCE

Bankers

Huff, Geyer & Hecht

First California Company

Chicago 4

NEW YORK 5

67 Wall Street 231 S. La Salle Street
HUbbard 0650
WHitehall 3-0782
FRanklln 7535
*v.1-2*75
'<}■' CG-105

.

francisco, seattle

HARTFORD,

Enterprise

*

7008

Enterprise

PORTLAND,

6011

7008

Enterprise

PROVIDENCE,

:

Insurance Stocks

—

;

By: E. A. VAN DEUSEN

On Sept. 20, 1945 the stock of Home Insurance was

asked; ten

quoted 26 asked.

quoted 29%

at the low point in the market of 1935, it was

years ago,

stock dividend in

After adjustment for a 3,45%

16.8% above the 1935

1937, today's price is equivalent to 30% and is
It is of interest to compare

the market change of two other lead¬

in the fire insurance field, over the same

ten year period, viz.:

Hartford Fire and Insurance Co. of North America.
as

follows:

'

Fire

v.—

has

J

.

It is also

that

interesting to

taken

place

61%

<

A—

N.

16.8

30% (Adj.)

2b

of

% Change

Sept. 20, 1945

April, 1935 Low

Home

Hartford

The comparison

.

-

Ins.

1199433568—_

193487

of

99.05

and

a

Stock

was made on Sept.
prices to yield 0.90 to 2.40%
for April 1 and Oct. 1,1946 to 1960
maturities, subject to approval by
the ICC and formal award by the

82.9
84.7

112

99V2

53%

.

■

the growth in liquidating values
period, as shown in the following

compare

the

over

Dec. 30, 1935
'

J

-

"

!

"

<

J

I \

)

.

/

/

-

>

<

Hartford
Ins.

'

i,

'

.

.

of

Fire

N.

;,'••• %,'■*

J

-

>!•"-

Home

69.90

10.3

120.13

.'<

"I

G2.3

113.46

77.76

7

•••

32.13 (Adj.)

29.13

—

A

% Change

Dec. 30, 1944

7

54.5

The discrepancy between Home's record and that of the other
two is

startling, and will bear

Three tabulations

investigation.

some

therefore presented which show the ten year earnings records of

pre

each company..

All figuresjire on parent company basis.

record is shown in Table 1, as follows: V
TABLE
v*

7%

I

HOME INSURANCE CO.
Total Net

1935

v

$3,797,000

;936

5,178,000
"

527,000 ::
2.354,000

-

1939
1940

Profits »Dividends
$5,580,000
$6,911,000
6,062,000
3,625,000

Fed. Taxes Operating

Inv. Inc.

4,331,000

2,677,000

1938

4,500,000

721,000

4,925,000

■;/

5,451,000

6,685,000

1942

—173,000

4,873,000

2,152,000

5,288,000

4,345,000

2,734,000

1944

;

4,800,000

5,441,000

-

5,259,000

4,800,000

5,911,000

4,800,000

6,681,000

$1,326,000
205,000

1,422,000

v

4,760,000

5,978,000

1941

1943.

Total

Total Net

$3,114,000

884,000

v

—

.'■V Total

Total Net

Uiider. Profits

1937

Home's

\

-

—

;

.

4,800,000

2,548,000
:

;

4,800,000

6,899,000

4,800,000

764,000

4,318,000

505,000

4,577,000

3,600,000

$18,261,000

Total

$46,354,000

$6,922,000

$57,693,000

$46,365,000

It will be observed that dividends have been earned 1.25 times,

and that total net operating profits exceed them by $11,328,000, which
amount

has^been ploughed back

over

the

years

to increase stock¬

holders' equity and to provide additional capital funds for investment.

Despite this, the trend of investment income since 1936 has been
downward.

It is of interest to note that the aggregate undistributed

earnings are

in

equivalent to $3.77 per share, compared with

liquidating value of $3.00

per

a

growth

share.

'

The record of. Hartford Fire Insurance Co. is shown in Table II,
as

follows:

*

.

Street,
Bunyan

FIRE

INSURANCE

CO.
Total Net

Total

Total Net
Inv. Inc.

$4,789,000

$2,616,000

2,569,000

2,584,000

$586,000
'712,000

4,168,000

2,727,000

716,000

'

.

___

3,048,000

2,740,000
3,192,000

3,452,000

2,699,000 •:

,3,600,000
3,638,000

4,696,000-

3,881,000

1941—

.

1942

1943———

;•

2,746,000

$32,685,000

...

2,400,000

5,105,000

-

2,400,000

•

.3,000,000

4,989,000
.

'.

5,765,000

-

938,000

-

6,063,000

-

$8,510,000. '

3,000,000

rv

3,000,000

536,000 Vv-';-" 7,000,000
4,867,000
1,470,000
6,778,000 •
1,799,000*

4,255,000

$33,840,000

,

Total-—/-

2,400,000

6,179,000

534,000

3,945,000

4,441,000

536,000

2,847,000

,7

—

Dividends

$3,000,000

$6,819,000
■r.

683,000

2,333,000

1940

Total

_

Profits

Fed. Taxes Operating

Under. Profits

1935„_-v41936__J_wQ-

3,000,000
;

.

3,000,000

• : -

$58,015,000. '

3,000,000

$28,200,000

Hartford's dividends have been earned 2.05 times, and total un¬

earnings over the period have aggregated $29,815,000;
equivalent to. $24.85 per share. Nj»t investment income has shown a
steady increase over the period, and in 1944 was approximately 63%
above the 1935 figure.
is

In Table III the record of Insurance

Company of North America

presented:

.f.,,/.';/

TABLE

■

-

III

Fed. Taxes Operating

Under/Profits

Inv. Inc.

$2,702,000

$3,098,000

940,000

3,487,000

1,588,000

3,748,000

GERMANT0WN FIRE INSURANCE CO.
V

Common Stock

,

5•

$20

Total

r

preferred for each 20 shares of
common stock held after giving
effect to the three for one split-up
of common stock approved by the
shareholders Aug. 21.

Dillon, Read & Co. Inc., headed
group
of investment houses
which underwrote the issue. The

a

taken

on

'

&

Offered at $100 per

Dividends

Profits

$3,000,000
3,000,000

5,336,000

3,000,000

Westvaco Chlorine Products Corp.

,

Walnut Street,

4,445,000

3,000,000

at

4,822,000

3,000,000

idends.

5,608,000

3,300,000

1941

2,077,000

652,000
591,000

5,921,000

3,600,000

$100 a share and accrued div¬
The offering is the por¬
tion of a total
issue of 97,000

4,604,000

271,000

4,392,000

3,600,000

shares

4,801,000

1,564,000

7,429,000

3,600,000

2,474,000

4,185,000

1,205,000

6,454,000

3,600,000

$18,569,000

$40,700,000

$4,635,000

$54,634,000

$32,700,000

4,435,000

59,000

1942——.

4,192,000

Total.;

"

Dividends by North America have been earned 1.67 times on a
parent company basis, which, though not as favorable a ratio as Hart¬
ford's, is considerably better than that of Home. Heavy war oceanmarine losses in 1942 cut rather deeply into underwriting operations.

of undistributed earnings is equivalent to
$18.28 per share.
Investment income shows, as in the case of Hart¬
ford, a strong upward trend.

The

aggregate amount

note that Home's underwriting record

It is also of interest to

on

the other hand, has a relatively steady underwriting

vestment income.

Insurance Company of North America

is

record,

occupies

a

fairly steadyAmderwriting record, except

1936 and 1942, and with total underwriting profits over

period aggregating approximately 45.5% of investment income.
At current prices,' Home's dividend yield is 4%, Hartford Fire

3.0%.
Relatively
speaking, Home is a high-yield stock, while Hartford and North
America are equity-growth stocks.
You pay your money and you

yields 2.25%

take

your

and

choice.

remaining; following

(All earnings figures have been obtained from
of Insurance Stocks.)

BANK

and

$4.25 preferred shares not ex¬
changed.
The new $3.75 preferred is re¬
deemable at $104 a share prior to
Nov.

16% of consolidated
income, whichever is greater,
annually for the

of $145,000, or
net

is to be set aside

purchase of new preferred stock
at prices
not exceeding $101 a
share.
Westvaco ^ Chlorine's out¬
standing capitalization, after giv¬
ing effect to this financing, will
consist only of 97,000 shares of
$3.75 preferred stock and 353,132
common

PHILADELPHIA, PA. —Henry
Welsh is back at his desk at




& Co., Packard Building,
serving 38 months in the

S.

Navy

mander.

the

lease

had

Members New York Stock Exchange

7-3500

Y.
-

,

,

Members

York Stock Exchange

New
other

leading

exchanges

;

,

Bell Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading

*

assigned to

Department)

I

WALL ST.
Telephone

NEW YORK 5
Dlgby

4-2525

Department

Navy

ington

Telephone: BArclay

Lieutenant Com¬

with

the International A Division

Bought—Sold—Quoted

.

120 BROADWAY, NEW YORK 5, N.

as

.

Mr. Welsh was last

STOCKS

_

shares.

Henry Welsh Back at
DeskWiihLilley

U.

INSURANCE

;

at $102.50 a
A purchase fund

and

1950,

1,

share thereafter.

after

Bank of

Laird, Bissell & Meeds

PENnypacker 9400

of its out¬

standing $4.50 preferred and $4.25
preferred stocks. The proceeds of
the financing will be used to re¬
deem on Nov. 2, all of the $4.50

C.

Philadelphia, Pa,

ex¬

piration of an exchange offer by
the company to holders

Insurance of North America

and
*

(no par) of the

preferred stock

$352,000

Members New York and Philadelphia Stock
Exchanges

1508

& Co. on

Sept. 21 offered to the public 56?018 shares of $3.75 cumulatiye

4,262,000

Co.
Exchange

Sh.

banking -group

investment

An

3,277,000

request

Associate Member New York Curb

•

Weslvaco Pref. Shares

3,803,000

Established 1865

Bioren

*

4,427,000

and
;

up

writers.

Lilley

Prospectus available

6,909 shares have
by the under¬

unsubscribed
been

$5,800,000
'

share

per

Mills, Inc. were privileged to sub¬
scribe at $100 per share for one
share of the 3%%
convertible

1,993,000

the 1945 edition of Best's Digest

Price

offer,

of General

1,371,000

the

50,000 Shares

company's

the

stockholders

1,168,000

for the years
'

stock

1940..:..

middle position, having a

of record only.

3%% convertible preferred
under the

headed by F. Eberstadt

,

Total Net

Total

Total Net

With total underwriting profits fractionally exceeding total net in¬

appears as a matter

of

issue

1939——.

ford,

having all been sold, this advertisement

shares of a
100,000 shares of

total of 93,091

a

new

I

■

,

INSURANCE COMPANY OF NORTH AMERICA
Total Net

i

These securities

largest package cereal companies
in the United States, subscribed
for

distributed

exceptionally erratic and that total underwriting profits for the ten
years aggregated only 39.5% of total net investment income.
Hart¬

^

war¬

General Mills, Inc., larg¬
est flour milling and one of the

ynder
II

1939—™—

LIQUIDATING VALUE PER SHARE

&

Angeles

Los
Mr.

subscription

of

Holders

common

HARTFORD

i:

company's subscription
offer extended to common stock¬
well, Marshall & Co., with which holders of record at the close of
The subscrip¬
firm, and its predecessors, he was business Sept. 7,
tion warrants expired Sept. 19.
connected for many years.

TABLE

Total Net

business

rants of

formerly R partner in Max¬

was

company.

1937_.

figures:

Spring

the
Exchange.
of

members

Re-offering

Edgerton, Wykoff

South

621

Co.,

rate of. 2%.

e#

description

Dillon, Read Underwrite
General Mills Pfd.

CALIF.—Wil-

LOS ANGELES,

with

•:

Trusteeships and Executorships
also undertaken

liam P. Bunyan has become asso¬
ciated

Zanzibar

CITIES

(Special to The Financial Chronicle)

Halsey, Stuart & Co., and asso¬
ciates
submitted the only bid
for an issue of $3,810,000 of Seatboard
Air Line Ry.
equipment
trust certificates, naming a price

Bank conducts
every
banking and exchange

The
_

Angeles, New York and Chicago

CALIF OH N I A

PRINCIPAL

IN

26 at

price.
ers

Teletype LA 533

Ceylon, Kenya

£4,000,000
£2,000,000
£2,200,000

Paid-Up Capital
Reserve Fund

Halsey Stuart Offers i William P. Bunyan Is
Seaboard Air Line Clfs, With Edgerton Wykoff

Bank and Insurance Stocks
This Week

'

San Francisco, Lot

Private Wires between
OFFICES

650 South Spring Street
LOS ANGELES

^

'

Teletype SF 431 •432

[ ^

TELEPHONES TO

;

.

Street

SAN FRANCISCO

Chicago,

new york, boston,

wire system connecting :

philadelphia, st. louis, los angeles, san

is

300 Montgomery

.

.

Private

India, Burma,
and Aden and

Colony

INVESTMENT SECURITIES

in

and Uganda

Subscribed Capital;

,

■

the Government

Office: 26, Bishopsgate,
London, E. C.
,
in

Branches

INCORPORATED

10 Post Office Square

to

Kenya Colony
Head

Boston 9

LIMITED

of INDIA.

California Securities

connection with

in

and

in

reverse

Wash¬

lend-

lend-lease.

He

previously been in charge of

the fleet service

delphia.
Lilley

&

section in Phila¬

He was associated with
Co.

to the war.

for 20 years

prior

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

still has
it

tically

on

materials

i

tion

brought about prac¬
unlimited demand for

that

often

were

out

against

any group,

taint

a

that such

very

a

of

and with-,

politics. «I admit
is apt to seem

premise

limited in -supply.
There was a a little academic to some of you,
|>oint beyond which even the but I think we ought to make it
£« '*.
highest prices could not have to clarify our thought.
stimulated increased production of
Now there is no point in as¬
these materials*
But if we had suming a price control that would
fixed merely the prices of mate¬ fix prices exactly where af free
rials and services heeded to fight market Would place them in any
the war, we could have brought case. That would be the same as
hbout precisely the opposite of the having no price control at all. We
real

that

end

For

vx

the
war

trying

were

achieve

to

possible

greatest
output.

must

seeking.

were

we

volume

duction

the

to

limited

goods,

national

with

efficiency.

hands of the public is greater than
the supply of goods available, and

that

If

had

prices- are being held down
by the OPA below the levels to

war

we

merely the price of

which

free

a

Now

necessities of

we

would

market

them.

merely the price of the
life, then we would

or

they

as

./
hold

cannot

put

of any commodity below its mar¬
ket level without in time bring¬

those

ing about two

goods without limiting the
wages and the
profits of those

The
first is to increase the demand fof

who

nonessentials

that

ultimate

reduce

were
making
luxuries.
The

sult

of such

policy, if

a

commodity/ The second is to
the

controls had been adopted, could
have been to discourage the pro¬
duction of war goods and civilian

about

necessities

modity.

and

stimulate

to

output of nonessentials
This

uries.

posite of what
do.

The

case

op¬

trying to

for the control of the

the

control of all

prices

; Both the case for narrow and
and the case for broad price con¬

means

that

trying

to

trol,

points,

part

merits may have been in

their

wartime,

completely
disappeared on
the
day that Japan capitulated. From

Jhat moment there baa been only
real

question. What is the
best method of terminating the
wartime controls and returning to

pne

a

free

peacetime

omy?
f

market

//.

So

miracles

many

still

are

that it is worth

amine

for

what it does.

amination

And

administered

that this

so

ex¬

precisely
ex¬

be

may

that this

assume

ex¬

many

while to

moment

a

so

expected of it,

our

fair, I shall
price control is

without

tional favoritism to

or

free

is

system
the

do,

of

any inten¬
discrimina¬

a

Government

^

it
is?

have

done

dark

picture; but it

trol.

>

Abroad,;

of the

some

errors of the bureaucrats
have been mitigated
by the black
market. And at home it is obvious

kets, therefore (and I confess that that we have not had and are not
a
rather
large assumption), going to have nonpolitical
price
continued ^ price
control .-.would1 control.
I shall
deal, therefore,
drive us to the rationing of more with the
actual price-control pro¬
and^ more commodities. • This ra¬ gram as it has been outlined by
tioning cannot stop with con¬ the
Presjdent^ by vMr. John W.
sumers/

In

it

war

did

not

stop* Snyder, b,y Mr. William H. Davis,
applied the Director of Economic Stabil¬

with

consumers; it was:
first of all, in fact, in the alloca¬
tion

ization, and by my fellow guest
of;raw materials to producers.; tonight, Mr. Chester
Bowles, the

'The

natural

consequence

of

a

over-all -price
control which would seek to per¬

petuate.

level,

given

a

in

historic

price
that of

short,

whether
1942 or any other past
year, must
ultimately .be a completely, regi¬
mented economy. V Wages- Would
as

be -held

to

down

as

rigidly

prices.

Administrator of the OPA.
Mr.
out

a

Davis the other day gave
most remarkable lecture on

economics

porters.
he will

the

to

Washington

It appears from this that
issue new wage-price

substantial

intended
wage

to

permit

increases

with¬

out, however, affecting the gen¬
eral price level. When the
ques¬

Labor would have to
bo rationed as ruthlessly as raw
tion
materials. The end result would1
be that the Government Would hot

only tell each

was
raised
whether wage
increases would not
automatically

increase

the

prices

precisely,

consumer

of

commod¬

hardly knows where to
begin in analyzing such black
magic.
Imagine,
for
example,
how simple and easy it would be
(and what a wonderful contribu¬
tion

to

grant

labor

harmony)

To allow the OPA to
decide, with¬
out
the
most
rigid

standards,

whether
a

manufacturer could add

a

increase

wage

to

in wartime

when

cratic

discrimination

And

cided

on

more

When
down

sion,

a

of

could, have.and what

labor.

Competitive

workers

could

no

with

the

a

final

be

more

tol¬

abandonment

of

all

traditional liberties-that

have

we

known.

half ago,

"A

costs.

At all events, the

Gov¬

quantity of ernment's postwar
economic pol¬
bidding for icy is to raise

power over

to

man's

a
a

power

wages 40%

to 50 %

Within the next
out

five; years with¬
increasing the cost of livingi

Under tbe
the

War

asked
wage-

new

wage-pric£

Labor

to

Board

consider

increase

will

policy!

is

how

to

be

a

-given

affect

costs.

The OPA will be' asked to deter-*
mine whether a wage increase re¬

quires
it

a

can

price increase or whether

be

"absorbed."

The

OPA

will be forced to cancel any

vol¬

untary wage increases made

un¬

der

the

new

wage

policy if

employer subsequently

how

a

countless other factors.

comes

an

dustry

or geographical section be
expected placidly to accept such
a
program?
v;
;

The truth is that the WLB and

OPA

are being asked to decide
something that cannot be decided
by anything but an open com^
petitive market economy.
The

formula

of

granting

quire

fact,
Workable.. It is

a

political, not

economic formula.
irt

a

handful!

rials

the

of

power

(Continued

to

an
It would place;

appointed offi-»
of making or

on page

Mortgage Gold Bonds

chronically

SERIES E,

41/2%, DUE JULY 1, 1977

Railway Company has irrevocably directed The First National
City of New York to publish appropriate notices calling for redemp¬
tion on July 1, 1947 the entire issue of the above mentioned Series E Bonds
then outstanding at 105% of principal amount plus accrued interest to said date.

NOTICE OF REDEMPTION

holders of

Great Northern

Railway Company hereby offers to purchase said Series E Bonds
up to and including December 31, 1945, excluding
Saturdays, Sundays and holidays, at prices dependent on the date of delivery for
from

NORTHERN PACIFIC RAILWAY COMPANY
AND

IMPROVEMENT

SERIES

NOTICE IS
to

redeem

and

Improvement

gether
with

with

HEREBY GIVEN
pay

tbat

off on January 1,

Mortgage 6%
accrued

Bonds,

interest

Northern

1946, all

Series B,

such

on

MORTGAGE

BONDS,

6%

'

Pacific

principal

purchase," such prices decreasing from 111.99% of principal amount

Railway Company has elected;

the above-mentioned Refunding and
of their principal amount, to¬
amount to said date, in accordance

110%

the terms of

said bonds and the provisions of Article Ten of the Refunding and
Mortgage, dated July 1, 1914, from Northern Pacific Railway Company
•to Guaranty Trust Company of New York and William S. Tod, Trustees, and that on'
January 1, 1946, there will, become and be due and payable upon each of said bonds at
the office of J. P. Morgan & Co. Incorporated, in the Borough of Manhattan in The
City of New York, N. Y,, tjie ..principal thereof, together with a preniiutA "of iQ%' of

Improvement

offer

should

prihclpar amount, and accrued interest on such principal amount to ta^d. date.
Prom and after January 1, 1946, interest on said bonds will cease to accrue and
any
•coupon for interest appertaining to any such bond and maturing after said date will

New York

become

as

be

null

and

void.

-

Bonds

on

deliver

their

Bonds

with

all

unmatured

appurtenant coupons to

The First National Bank of -the

such

and

as to

September 24,1945 to 110.93% of principal amount as to Bonds deliv¬
ered on December 31, 1945, to yield in all cases J^% to July. 1, 1947$ the date
of redemption. Accrued interest at 4J^%. per annum from July 1,1945 to the
date of purchase will be added in each case. The Company has prepared «t table
showing the price so payable as to Bonds delivered on ;each day (other than
Saturdays, Sundays and holidays, which days are not delivery dates) from September
24, 1945 to and including December 31, 1945 and will be glad to advise bond¬
holders thereof upon request. Holdefs of said Series E Bonds desiring to accept this

of

at

the holders thereof

delivered

B, DUE JULY 1, 2047

,

City of New York, at its office, No. 2 Wall Street,
15, N. Yj against payment of the purchase price and accrued interest

aforesaid.

'

'

/

■

Coupon bonds should be

presented and surrendered for payment and redemption
payable July 1, 1946, and thereafter .attached. Coupons
•due January 1, 1946, may be detached and presented for payment in the usual man¬
ner.
Interest due January 1,
1946, on fully registered bonds will be payable only
upon
surrender of such bonds for redemption.
Registered bonds, in
cases
where
payment to anyone other than the registered owner is desired, must be accompanied;
by proper instruments of assignment and transfer.
•/;'/
as

aforesaid

with

all

coupons

I--,*

3%%, DUE JANUARY 1, 1967

'

Great Northern

Railway Company has irrevocably directed The First National
City of tiew York to publish appropriate notices calling for redemp¬
on
January 1, 1946 the entire issue of the above mentioned Series I Bonds
outstanding at 104% of principal amount plus accrued interest to said date.

.Bank of the
NORTHERN PACIFIC RAILWAY

By
New

SERIES

COMPANY,

A. M. Gottschald,

tion
then

"

York, N. Y., September 26, 1945

Secretary'

OFFER OF PREPAYMENT

Holders of said Series I Bonds may immediately obtaiii the full redemption
price thereof including accrued interest to January 1, 1946 by surrendering such
Bonds with all unmatured
appurtenant coupons to The First National Bank of the
City of New York, at its above mentioned office.

Holders

desiring to receive immediate payment of the full redemption price includ¬
ing interest to January 1,, 1946, may do so upon presentation and surrender of said
bonds
in The

at

the

office

of J.

P.

Morgan & Co. Incorporated, in the Borough of Manhattan
City of New York, with the January 1, 1946, and subsequent coupons attached.




GREAT NORTHERN RAILWAY COMPANY
■

St. Paul, Minnesota,

By F. J. GAVIN, Presidtnl
.

September 24/1945.

-

«#.

re¬

increase in prices is, in
neither
determinable
nor

increase.

General

increase

an

It

in
excess
of supply.
If you ration
one
commodity, and the public
cannot get enough of it, though it

an

in wages wherever it will not

Great Northern

REFUNDING

com¬

a wage increase
that would put its competitor out
of business. Is each
company then

Bank of the

to the

One

pany could absorb

it is supported;

is

caprice.

affect

while

prices are arbitrarily held
by Government.... compul¬

demand

or

given wage increase
prices?
Evfefy com-r
pany has a different margin of
profit per unit of production, de¬
pending on its relative efficiency,
location, volume of output, and
Will

a sense

difficulties

its

or

what basis will it be de¬

of crisis, i
longer it is in effect the

b.y patriotism and
But the

for

prices

whether he would have to absorb
it in profits would
put every man¬
ufacturer at the mercy of bureau¬

the supply, as a higher
price would have done.
Now price-fixing may seem to
short time.

to

price'rise, to reduce Wages again!

lating

a

first

wage increase and then,
the employer asked for a

a

when

ities, Mr. Davis replied that such
thinking was fallacious economid to pay different
wages? And will
•reasoning. Wages, he assured hii the workers getting less than the
manufacturer
precisely - what
listeners,- are not a major part highest wages paid in a
given in¬
quantity of each -raw material he

how much of each commodity he
could--have; Jt, would tell each

through prices. I say only part of; subsistence amounts
the job, because it merely limits:
over his Will."
the demand without also stimu-t

be successful for

requests

One

re¬

soon

regulations

and

A Policy of Black Magic

;

con¬
more

fantastic

and do prevent black mar¬

the
Government
higher prices.

con¬

is

a

ra¬

a

be remembered that I have

describing perfect, long
tinued, and nonpolitical price

that

assume

For, as- Alexander
by coupons
or: Hamilton
pointed out in the Fed¬
the; job that a; eralist
Papers a century and a

would

market

If-

adopted,-

can seem to work well

were

pected of price control,,
miracles

econ¬

.■

com¬

ultimately take

how it shall be rationed.

tioning

whatever

that

To mitigate that Conse¬

and all wages.

however,

of

we

erated than competitive bidding
Gov-> for materials.
The result would
ernment to say who shall have
be a completely petrified totali¬
priority
in
buying
that
com¬ tarian
"jedonomy, With every busi¬
modity, or to whoni and in what ness firm and
every worker at the
quantities it shall be allocated, ori
mercyr_ of the Government and

prices of war essentials, therefore,
plausibly be stretched to a
for

we can

If

is

1465

been

commodities

further step, which is for the

could
case

shortage

a

quence we must

lux¬

and

were

we

ing, therefore, would be tb bring

the

precisely the

was

consequences..

supply of that com¬
modity. If we did nothing else,
the consequence of the price-fix¬

re¬

other

no

unrationed

that .remain.

have
the price

have limited the wages and prof¬
its of those who were making

and

the?

That

possible

lowest

consistent

health and

.they

as

during the war and

now.

This
must

must put more and more pressure
on

is, we must assume
•thorough-going
that the purchasing power in the

We were trying to
keep down ordinary civilian.pror

level

conditions

assume

were
are

of

purchasing power,

will

turn to
some, substitute.
The rationing of each
commodity
as it grows
scarce, in other words,

(Continued from first page)
in effect

war

excess

1467)

/

THE

mrsday, September 27, 1945

CHRONICLE

COMMERCIAL & FINANCIAL

accompany
the
This fund, which

Fund

Fidelity

announcement.
founded

was

in 1930, had 310,855
outstanding on June 30

shares

this

comprising

year,

asset value of
date.

total net

a

$7,743,463 on that

K

//-•

■■

V;;?

bulletin

Bullock's

Calvin

on

Dividend Shares comments on the
13th

$55,000,000.

"In these

Co.

Lord, Abbett &
'

>

.

.;j,\.

INCORPORATED

;

NEW YORK

CHICAGO ♦ ATLANTA

»

historic years the

13

total cash dividends paid to share¬

have

holders

on request from

Prospectus

amounted

to

$26,-

■Y^

521,820, of which $9,179,772 was
profits realized from sales
of securities owned by the Com¬

LOS ANGELES

•

assets

has

now

than

more

this fund,
totalling

of

anniversary

which

from

Principal Underwriter

pany."

INVESTORS SYNDICATE

Mutual Funds

T iming

Minneapolis\ Minnesota

Selectivity Plus Vigilance

folder

for continuous supervision of
investments we suggest that he read the summary of an ar ic e
y
Thomas S. Gates, Chairman, University of Pennsylvania, presented by
Selected Investment Co. in a current memorandum on Selected
If

an

the need

doubts

investor

American Shares.

•

points out that an
bonds of the six strongest nations <S>
Gates

Mr.

at the turn of this century

in

short

the

Railroad Stock

->•

A Gloee of Group

investor

Gates shows that had an

•

without interruption;
two have paid no dividends in 10
of the last 20 years and only nine
of these corporations
are suffi¬
ciently representative to be in¬
Dow-Jones
Thirty Industrial Stocks today.
W

the

"We

compelled

are

to

con¬

clude that capital cannot be pre¬
served

broad diversi¬

either by

fication of risk

by the pur¬

or

chase of securities which in the

judgment of informed men rep¬
resent sound investments at any
one

the

given time.

It

application

attention

and

of

the

is only

by

unremitting
exercise

of

continuous sound judgment that

;

.

■

«•

-

DISTRIBUTORS

ments

,

the original

cipal

can

be maintained or in¬

Co.

re¬

profits of
Selected

The Di¬

proximately $2,900,000.
rectors

to

set

of

Selected

aside

have decided

special reserve of

a

$300,000 in U. S. Treasury bonds
for "possible capital profits distribution" and should additional
profits be realized between now
and the end of this year this re¬
serve
will be increased accord-

Incorporated

the

in

Corporation

Parker
on

a

Investors

performance

of

15

standard stocks chosen by a lead¬

ing financial publisher during the

Building

•

Phila. 7, Pa.

You

alone.

expert management, too!"

A

of

measure

is

shares of Wellington
showed
a
gain, of 218%
the

Fund

with
140%
for the
Composite Average.

compared
Dow-Jones

Angle

period
from
Pearl
Harbor
(12/7/41) to VJ Day (9/2/45). In
this period the stocks analyzed
showed percentage gains ranging
from a high of 212% to a low of
18.1%, with an average gain of
67,6%.
In the same period In¬
corporated Investors recorded a
net gain of 148.8%. Only three ol

current Invest¬
Affiliated Fund
interesting
"angle"

an

on

showing

of the

the course

market in compari¬

with that of the last two ma¬

jor bull markets. Both in point
of time and rate of climb the pre¬
vious
bull markets far outdis¬
the

tanced

performance

of

the

date.

present bull market to

closely

very

to

the

If the present

these

conform

to

will

only

not

1921-1929
trend is to

precedents

have

to

upward, but also at a
ably more rapid rate."

it

continue
consider¬

One

Earnings

Capital Stock of

NATIONAL

Custodian

Priced at Market

Prospectus of

Incorporated

Investors may

be obtained

from investment dealers or

•

»

Dangers

PARKER
ONE

BOSTON,

STREET

MASSACHUSETTS

from




New York 5, N.

Y.:

your

The

is not past in its
Notes. A

have

we

a

vestors

.

.

.

.

,

.

on

Corp.— Sep¬
National
In¬

Broad

and

ing Corp.

.

Street Invest¬

.

Distributors Group

—Current issues of Industrial Ma¬

ceased.

similar

Sales

letter

tember

rise dur¬

hostilities

after

Street

Broad

expe¬

rience this time it is obvious that

chinery News and Steel News;
basic

vised

folders

Shares

Machinery
Shares.

.

.

Company
"These

on

Steel

and

Selected Investments

.

—

re¬

Industrial

Current

Things

issue

Seemed

of

Impor¬

tant."

still with

inflation danger is

us.

Dividends

Massachusetts Investors Trust—

Income

"In the

12

last

months," writes

Group, "Institutional

Distributors

Shares

paid regular div¬
equivalent to 3.7% plus
extra dividends of 1.2%, for a to¬
tal return of 4.9% on the current

Bond'

A

quarterly dividend of 200 a
payable Oct. 20, 1945 to
of record Sept. 28.

share

shareholders

idends

offering price." The sponsor adds
that in these days of declining in¬
come
from
quality investments,
income at this generous rate from
broad

vised

and

continuously

portfolio

of

-

super¬

York

New

"legal list" bonds should be high¬
ly attractive.

Business Man's
Bookshelf
Directors and Their Functions—
John Calhoun Baker—Division of

Research,, Harvard

Guideposts to

Hugh W. Long & Co. has issued
stockholders

of

notice to

Book

Economy

McGraw-Hill

—

$2.00.

In addition

Fund.

Free

a

Harley L. Lutz

—

Manhattan

important dividend

an

Business

School, Soldiers Field, Boston 63,
Mass.—paper—$2.50.

Manhattan Bond Fund

Co., Inc., New York City—
,

-

to the
Private

Monopoly—David Las-

15, 1945 ser—Harper & Brothers, 49 East
to stock of record Sept. 29, the
33rd Street, New York, N. Y.—
Directors have declared a special cloth—$3.00.
fiscal year-end capital gain div¬
idend of 750 a share. This capital
Should Price Control Be Re¬
gain dividend is payable at the tained?—Harold G. Moulton and
option of the shareholder either in Karl
T.
Schlotterbeck
The
cash or in capital stock of the
Brookings Institution, Washing¬
fund at its asset value.
ton 6, D. C.---paper---5O0.
The sponsor believes "it is to
the advantage of the great major¬
South American Handbook—An¬
ity of shareholders to receive ad¬
payable Oct.

share

per

at

its full

their

level."

A

printed

folder

contained in

addressed

to

may

be obtained

local investment dealer

Paul

50

that

or

Keystone Company

Congress Street, Boston 9, Mass.

has

to

guide and book of reference

the

and

countries, products, trade

resources

of

Cuba,

Mexico,

Central and South America—The

W.

Wilson

Co.,

950-72

Uni¬

versity Ave., New York 52, N. Y.

Davis

&

Edward

C.

H.

Mr.

nual

H.

stockholders.

of Boston

120 BROADWAY

*

Invest¬

ditions World Wars I and II."

Fidelity Fund

CORPORATION

COURT

Research

with the price rise
this war
shows, significantly, that 20% of
the World War I price rise oc¬

a

•

RESEARCH CORPORATION
THE

4.50

for this conviction is

Prospectus upon request from
your investment dealer or

NATIONAL SECURITIES I

10.18

ditional stock and maintain

Funds
Prospectus

*

Research

of

Timing continuing its dis¬
impracticability of
the full employment bill.
Cal¬
vin Bullock—September issue of
Perspective discussing "A Com¬
parative Study of Economic Con¬

compared

the

issue

cussion of the

detailed discussion of the reasons

.**

-

4.07

2,08

Current

.

investment

Shares

(S-3)_

(S-4)_

—

Literature

Fund

Securities &

ment

which has taken place in

Should

ago.

year

—

Securities Series jj
INCOME SERIES

6.57

regular quarterly dividend of 100

Corporation devotes
the current issue of Keynotes to

of the

3.80

chart showing the price

all

Keystone

Shares of

(S-2)_

current issue of National

curred

August this year to $12,- '
with $10,636,-

compared

National

Corporation states flatly that the

Bond

Common Stock

$7.96

inflation danger

a

Lord, Abbett concludes, "So far
the 1942—? pattern corresponds
record.

$4.92

National Securities &

Abbett's

Bulletin

contains

chart

Inflation

as

a

Mutual

Tinw-PrifPfl

Common Stocks

Generous

Lord,
ment

616

Corp.

Common Stocks
AH

an

Elim.

ing and after the first World War

long-term

the

management record of this fund

present bull

analyzes

220 Real Estate Trust

a

period

The

or

or

in

with an addi¬
appreciation
the portfolio amounting to ap¬

months of this year,

letter

investment dealer

investor

average

605,500

Appreciation

40

as

tional net unrealized

eight

"From Pearl Harbor to Peace**

your

operating such

diversification

need

son

Prospectus from

invest¬

given by a comparison of its per¬
formance during the war period
from
1939 to 1944.
During this

American Shares in the first

ingly.

A MUTUAL INVESTMENT FUND

The

doctor

from

Investments

in

is

companies

close of

E.P.T.

(S-l)_

Common Stocks

quarterly report shows

increase in total net assets at the

40 Income

lawyer. Good in¬
vestment results are not secured

a

creased."
Selected

it

duPont.

fund's

High Grade

30

as

needs expert financial advice just
as much as he needs the advice of

value of the prin¬

ports total net realized
almost
$350,000
for

in

as

setts Investors Second Fund—This

Adj. to

Taxes

General
Motors, American Telephone and

new york s, n. y.

•

1944 Earn.
After Present

by experienced in¬
personnel."
Massachu¬

vestment

present taxes and the same earn¬
ings adjusted to eliminate the ex¬
cess profits tax.

let¬

a

just

is
handling

management

successful

supervision

given for the four Keystone Stock
Funds showing 1944 earnings after

Common Stocks

important

group, Incorporated

stock

common

earnings assuming elimination of
the excess profits tax. Figures are

follows:
"Good

63 wall st.

in

to answer the question as

goes on

•

of

analysis

an

Wellington Fund, and then

ter on

Securities, Inc.

Prospectus on Request

have in the meantime
been reorganized with a large loss
to the stockholders; only six of
the 20 have maintained dividend

payments

V

V-.

porations

among

Important?"

asks W. L. Morgan & Co.

Mr.

a new

Institu¬

vide timing in the selection of
that type of securities which is
currently most desirable; security
selection based thereon and daily

,

Management

"Is

placed his funds in the 20 com¬
mon
stocks which comprised the
Dow-Jones Industrial Average in
1924 his position today would be
unsatisfactory. Two of the 20 cor¬

cluded

outperformed the 15 stocks,
a group, by better than

as

Wellington Fund

■

example,

another

Citing

did as well as the
Incorporated Investors

two to one.

portion in French Govern¬

ment bonds.

of

taken

respect to half of the investment
and a partial loss with respect to
that

stocks

the

which

of 20 years,
total loss with

of

emphasizing

the thesis that these shares "pro¬

shares

would,

published

shares

the

on

tional Securities, Ltd.

.

investment in the Government

space

have resulted in a

■

Hare's Ltd. has

Co. reports
Johnson 2d

recently resigned as vice pres¬

—fabrikoid—$1.25.
State Aid and Shared Taxes in

.

ident of Incorporated

New

%

order to

Expenditure Survey of New York

the

Investors in
devote his entire time to

presidency of Fidelity

Fund.

Folders, giving the historical rec¬
ord and the current portfolio of

York

State—Citizens Public

State, 100 State Street, Albany 7,
N. Y.—paper.

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

162

that

Releasing Price Controls
'

'

-

-

any given labor
business firm by granting or

holding

effects

Its

increase.

evident

increase or

wage

a

30%

wages,

in

increase

even

above the wartime level,
with

Companies like Ford and General
Motors, like Westinghouse and
Electric

General

any

there

to

else.

scores

of

but they ought to be
own decisions

case,

free

must be not a penny increase in
the price of cars or of anything

and

others, depend utterly upon pub¬
lic good will. They cannot afford
to exploit shortages.
They must
price as closely as they can in

together

that

insistence

an

the

of
a

for

automobile / unions

hourly

with¬
price

already

are

demands

the

in

soon

(Continued from page 1465)

breaking

make their

in the

light of their own intimate
and immediate knowledge of what
the situation is. The whole plan
reconversion

in fact,

As for Mr. Davis's opinion that
are not a major part of
costs, one may get a rough esti¬

of

mate of the truth

down toward the
lowest workable long-term level.

pricing,

,

wages

by recalling that

from 1929 to 1943
wages and salaries accounted for
an
average of 69%
of the na¬
tional income.
These wages and
in the

15 years

salaries had to be

paid out of the

If we carry the
analysis far enough, indeed, prac¬
tically all costs can ultimately be
traced to labor costs* past or pres¬
national product.

real

The

ent.

fallacy is to look

only at the labor costs of a par¬
But

firm.

ticular

the

its

of

cost

ignores the enormous role of com¬
petition in controlling prices and
bringing them

abandonment of

immediate

An

they will "eliminate ration¬

ing and price controls
commodity after another

in the reconversion
and luxury field would simplify
the task of OPA enormously.
It
would reduce it to controlling

price-fixing

only the most necessary cost-ofitems, and a few other
items still being rationed.
Even
on these it should no longer make

living

rigid effort to "hold the line."
Rather the
Government should
any

materials,
its
machinery, give way month by month in al¬
moderate
increases
in
transportation, -light, beat
and lowing
power
(assuming that these are prices, liberalization or removal
of the rationing that remains, and
supplied from the outside), must
in turn be broken down into labor tapering off or removal of sub¬
raw

supply

as

comes

with demand."

long

as

one

just

as

into balance

But this overlooks

that the very price
as

on

control itself,

the basic

causes

of in¬

flation

this

If

trol,
to

continued

though the

even

the

prevent

War.

duction.

adhere to this

that

This

the

as
the danger
past."
But this
again is a criterion that would
mean perpetual price control. The
soon

is

danger of inflation will not be
past
until deficit financing is
brought to a halt; and even when
that happens prices, will have to
catch up with the level that the
excess
purchasing power in ex¬
istence has already made inevit¬

able^
any

-

-

budget deficit

try to cure inflation by price

control

is

to

the.basic

continue

of inflation while

causes

trying to

program

*

as¬

control

.

riot

is

justified,

affecting

1919

in

example,
that

said

There

number of factual mis¬

a

conceptions
it

1921.

to

this

comparison.

frequently hears

one

there

was

40%

a

to

50% increase in commodity prices
after

the

last

Actually the

war.

of wholesale prices from

advance

the high

point of the war in No¬
vember, 1918, to the high postwar
point in May, 1920 was only 21%.
The

pattern of prices after the

last

war,
mined by

the

ter

prices

moreover,

deter¬

was

the policies followed af¬

last

It

war.

carried

were

is

true

in part by

up

and

excesses

that

in*

by

ventory hoarding. But the mem¬
ory of the bad consequences to the
speculators and inventory hoard¬
1920

of

ers

will

to prevent

themselves

tend

the repetition of that

particular

boom, however,
have

been

After

the

of

a

for

the

1920

seems to me to
different nature;

.

,

the

reflected

labor

in

increase

productivity in the meantime. We
can

continue to raise wages in re¬

lation

to

tinued

only by

prices

increase

in

labor

states and localities can be warned

well

is

it

that

for

them to take the job over.

con¬

a

advance

in

But, it will be asked, how are
we going to fight inflation?
How
are
we
going to prevent a run¬

to get the credit for this progress.

away

A

this

in

increase

productivity

can

take

price rise?

workable

need

talk

of

the

from

price control "gradually." I
that I am a little suspi¬

confess

cious

myself

word.

It

can

hear

I

harmful

for

excuse

when

this

too easily become an

delay

do think there was a good

but

I

deal to

be said in favor of an orderly and

properly synchronized release of
price controls. With the virtual
the

of

removal

controls

over

however, this orderly and
s.ynchonized removal of price con¬
wages,

fight

icit financing leads to

own
are

is

longer

no

safe

This

announcement

in

It

-

should

immediately,

there¬

fore, abandon completely any at¬
tempt at overall price-fixing.
It
should
not
attempt for a day

to

fix

the

think

should

be

they should

revised;

I

be abandoned

altogether. ,If they are applied to
a

multitude

of

small

companies

they cannot be enforced, and in
the case of really large companies

they

are

altogether unnecessary.




an

unfunded

total of

debt

to

than

Government and private loans fi¬

is not to he construed

to a

more

Together

these

borrowing

as an

offer to sell

or as an

offer

to

This def¬
heavy Gov¬
from
the

merely by fixing prices
doing anything about the
causes
that
were
working
on
prices. The result of such a course

in 1919 would

probably have been

to make the situation much

than

it

It

was.

worse

might have dis¬

couraged the increased production
that helped to
bring the price
rise to

a

halt.

It would have been

even,

greater folly to try to

vent'

the

Prices

fall

of

prices

then

were

in

pre¬

1920.

merely adjust¬

ing themselves part way back to
the prewar level. While it is de¬
sirable
is

have

to

much

price stability, it
desirable

more

to

have

maximum

production and maxi¬
mum
employment. To fix prices
below the point where a free mar¬
ket would place them, discourages
production by cutting off profit

margins.. To
where

a

fix

prices

above

free market would place

discourages
consumption
production. Thus both
price ceilings and price floors re¬
duce production and bring about
economic strains/and maladjust¬
.

and hence

ments..

;,
,<
What does all this lead to? It
leads, it seems to me, to only one
conclusion.
ger

We

can

solve the dan¬

of postwar inflation, not by

price-fixing,
turn

to

but

only

by

a

spending and by

a

return to a free

market economy.

buy the securities herein mentioned.

offering is made only by the prospectus.

,

^

"1

v.

97,000 Shares*

Westvaco Chlorine Products

ing from the banks puts into cir¬

deposits and
means,,;r.in
other words, a constant increase
in the supply of money in rela¬
tion to the supply of goods. That
must inevitably reduce the value
of money in relation to the value
of the goods.
We can put the
matter in another way by saying

that

It

the

Government

is

$3.75 Cumulative Preferred Stock
Without Par Value

'Pursuant
to

to an

exchange offer of the Company, 40,982 shares

holders of $4.50 Cumulative Preferred

Stock. The remaining 56,018

ing the volume of monetary pur¬
chasing power in relation to the
of goods. It is the Gov¬
ernment's own policy, in short,

the
this

is forcing
war

it

whole

part

up

could

Sf'ii.7

Price $100

the

we

per

share

plus accrued dividends

prices. During
argued that
was in large
Government's

Copies of the prospectus may be obtained from the undersigned only
in states in which the undersigned are qualified to act as dealers

•

-cannot, solve the

problem by more deficit financ¬
ing, by continuing to pump new
money or to pour new excess pur¬
chasing power into the economic
system at one end and then sit¬
ting on prices at the other. That

and in which the prospectus may

in securities

And there is no other way.

/Certainly

being offered by the Underwriters.

be

process

beyond

are

to be issued

Stock and $4.25 Cumulative Preferred

increas¬

volume

that

shares

are

legally be distributed.

F. EBERSTADT & CO.

COFFIN & BURR

■

E. H. ROLLINS & SONS

RITER & CO.

//77: '/:.4'-//7/ • Incorporated

Incorporated

G. H. WALKER & CO.

/

LEE HIGGINSON CORPORATION

EASTMAN, DILLON & CO.

-/ rv/:..

•:

PAINE, WEBBER, JACKSON & CURTIS

LAURENCE M. MARKS & CO.

ALEX. BROWN & SONS

EQUITABLE SECURITIES CORPORATION

SPENCER TRASK & CO.

ment.

Mr. Bowles and other Govern¬
ment officials have
two criteria

control.

quote

frequently set

They have said —and I
President Truman's

from

message to

HORNBLOWER & WEEKS

/

,

STARKWEATHER & CO.

for terminating price

Congress of Sept. 7—

September 21, 1945.

1

li*.

re¬

prudent / Government

culation added bank
currency.

to

could have cured

this

NEW ISSUE

inflation

luxury or semi-luxury.

formulas

dol¬

Europe

we

all

unrealistic

and

we

or

price of any
It should is like pumping gas inlto a balloon
not attempt to fix the price of any and trying to keep the balloon
article that was out of production from expanding. If you hold it at
during the war. The OPA's recon¬ one part, it merely expands all
version price-fixing formulas are the more somewhere else. By try¬
.complicated, unrealistic and un¬ ing to sit on the lid, by trying to
fair. They can only have the ef¬ control inflation through holding
fect of holding up reconversion, of prices, you merely put the na¬
delaying, not stimulating, pro¬ tional economy in a strait-jacket
duction. But I do not believe these and bring about mass unemploy¬
longer

of

same time private in¬
dividuals, banks and corporations

extended

naive

and not

lars. At the

The

possible.

short, has made it
get rid of price-fix¬
ing with the least possible delay.
policy,

billions

several

$3,500,000,000.

encouraging wages to rise while

necessary to

of

that

finally,

By- control. But now at last we are
in a position to start bringing the
sitting on prices we can only re¬ federal budget into balance. The
duce production and create unem¬ sooner we do it the sooner we can
ployment. The Government's wage solve the problem of inflation.
trols

Allies

United

the

continued
to
to its European

Govern¬

by the

policy.
told

advances

is

This Government borrow¬

banks.

added

great deal of
of
emerging

no

deficit financing.

tainty, to reduce production and
to bring, about the very unem¬
ployment that the Government
most wishes to prevent. *

a

is

to

way

ernment

Decontrol

created

make

except to stop the basic cause of
inflation.
That cause is Govern¬
ment

We have heard

The answer to

there

that

is

place, can only work to wipe out
profit margins, to create uncer¬

Wage Increases and Gradual

ment's
We

tivity, brought about by a pro¬
gressive market economy. But Mr.
Davis wants Government officials

wages and keep down prices by
Government edict, faster than this

be

war

Treasury

It

believe that

Fight Causes of Inflation!

produc¬

hasty effort, however, to raise

will

States

last

September of 1920 of $6,600,It was this export boom
by credit that mainly
led to the 1920 price rise. In ad¬
dition there was a great wave of
wage
increases
which
carried
wages far beyond even war levels.
When the export boom, based on
credit, came to an end, prices here
began to drop.
\ < 7
000,000.

financed

them,1

error.
main reason

The

of exports to
the end of 1918

excess

and

be shown

can

conditions

•' ; speculative

•

continue the

To

we

sev¬

It

prices in the present period are
essentially the same as those that

For

"as

unless

assumption

that

often announced by OPA officials
is that price controls will be ter¬
inflation

kind

however, unless it

are even

of

between

pricfes the pattern of price changes
now will
be essentially the same
as the pattern from
1919 to 1921.

criterion, we never will terminate
price control. The other criterion

minated

an

Europe

assumptions.

existed from

we

nanced

Now this view involves

eral mistaken
sumes

So if

con¬

is over,
of violent

price
war

price fluctuations that took place
immediately after the last World

continue, will prevent sup¬
ply from catching up with de¬
mand.
It is precisely the func¬
tion of free prices in a free mar¬
ket to bring supply and demand
into balance. But a price below
the free market price must en¬
courage excessive buying at the
same time as it discourages pro¬

is well prevent the symptoms. It is like
the
patient's
fever
To promise to raise wages and managed, the OPA could get rid increasing
while trying to make him look as
to keep down prices would no of/75% of its present price-fixing
doubt be the ideal political for¬
job before the end of this cal¬ good as ever by holding the ther¬
mometer down to normal. To the
mula—if
it
could
be
made to endar
year.
It could liquidate
extent
that
this policy is4 not
trork; To prove that it can, Mr. ; practically all the rest well before
counteracted by a growth in black
Davis points triumphantly to an June 30 of next year when its
increase of average hourly wages present legal life expires. If it is markets, it means that profit mar¬
from 47 cents to $1.02 from 1919 still thought necessary to control gins will be cut or wiped out, that
reconversion will be delayed, that
to 1944, with the cost of living home rents in existing houses and
production in many lines will be
virtually unchanged. But this im¬ apartments—and I shall not now
provement required 25 years.
It discuss the wisdom of this — the discouraged, that unemployment
sidies.

costs of other firms..

have

must

1467

f.

THE COMMERCIAL

& FINANCIAL CHRONICLE

1468

CANADIAN BONDS

Dominion

Principal and interest

1, 1962

payable in New York,

Price

to

REPORT

Guaranteed

of Canada

4% Bonds, due January

GOVERNMENT

Canadian Stocks

Rly. Co.

Grand Trunk Pacific

Canada or London

yield 2.70%

*

involv¬
deben¬
tures, gave the investment world
good insight into the current
phone & Telegraph Co.,
ing $160,000,000 of 23/4%

Incorporated
14 Wall Street,

Direct

New York 5

Private Wires to Toronto &

prevailing previous to the

surrender of Japan in

AMES & CO.
INCORPORATED

•

pointer still swings

that time was

4

STREET

NEW YORK 5,

RECTOR

N. Y.

NY-1-KM5

2-7231

ply in the world.
This greater dependence on

quotations!

Exchanges,

or

furnished

net

at

New York

99.559 and the re-

Prices.

000 total.

time,

This

slightly

the

on

the

undertaking,

smaller

Direct Private Wires to Buffalo,

com¬

Toronto and Montreal

again received two bids of
which the higher was 99.8199, a
shade better than two months
pany

/,
dull and free
funds fluctuated narrowly around
Internals

the

on

Montreal and Toronto Stock:

offering price to the public was
at par for the $175,000,-

with the SEC,

im¬

ex¬

fixed

untapped resources can fill the breach More¬
over, as the Dominion's mineral deposits are largely located in the
Laurentian Shield, which is also<^
that the proposed public offering
the seat of Canada's unrivalled
in this country in connection with
hydro-electric power, this region
the Alberta refunding plan will
is the lowest cost source of sup¬
shortly be filed for registration
almost inexhaustible

TWO WALL

Stock orders executed

the

sale,

first

the

of

com¬

on

pressed a bit of disappointment
that the issuer had not received
a
bid of at least "par" for its
debentures.
The high bid at

WILLIAMS

northward. Further confirma¬
tion of the depletion of commercial sources of supply of minerals
in this country is given in the recent report of the Interior Depart¬
ment,
This development, however, is by no means tragic.
Canada's
The economic

A. E.

BRUCE

the

commenting

in

terms

mid-August.

of

Treasurer

pany,

Canadian Securities
By

with con¬

market as it compares

ditions

Montreal

The

CANADIAN STOCKS

Tele¬

financing by the American

Wood, Gundy & Co.

CORPORATION

large piece of re¬

week's second

PROVINCIAL
MUNICIPAL

surrounding this

Circumstances

but still not quite in keep¬

ago,

ing with the hopes of the com¬

were

Dominion Securities

ports- of raw materials can also
pany's fiscal boss. The reofferto be by no means a detri¬
ing price was fixed at 100 % and
(ORPORATION
factor. It can be instru¬ 10%. The terms of the $lx/2 bil¬
the bankers reported the entire
mental in creating a more natural lion Ninth Victory Loan showed
issue placed in considerably less
no departure from previous^ pol¬
40 Exchange Place, New York5, N. Y*
balance in this country's inter¬
than an hour, setting a record
national commerce, and its eco¬ icy of - maintaining the low in¬
for an undertaking of such pro¬
terest pattern by extending the
V B«U Syitem Teletype NY 1-702-3
; 1
nomic benefits can far surpass
portions.
those secured by the more or less maturity instead of decreasing the
The slightly better price, which
artificial
absorption of foreign coupon. Consequently, the offer-:
CANADIAN
ings include the customary 1%% cut the underwriters' spread to
gold and silver.
.;
Sound Power & Light Co.
At
In this connection the recent and 3% bonds maturing in five around $4.30 a $1,000 bond from
east
one
large banking group,
Bought-—Sold—Quoted
oh the earlier occasion, headed
boost in the price paid for foreign years and 20 years and 10 months, $4.40
by midrwestern interests
probably reflected the lesser pro¬ is
silver
will
aid
Canadian pro¬ respectively.
forming for the competition.
ducers of the metal, and notably
portions of the business.
With regard to future pros¬
Next largest would be the re¬
Consolidated Mining and Smelt¬
As
far
as
the
investment
pects, the only unfavorable fea¬
financing projected by Pennsyl¬
CHARLES
world is concerned;, however,
ing Co. This further enhances the
ture of the market for external
vania Power & Light Co. which
Members Toronto Stock Exchange
bright prospects of this company,
bonds is the scarcity of supply
the operation indicated clearly
plana to sell $93,000,000 of new •
61 Broadway, New York 6.N.T.
which is the world's largest lowthat
which will curtail activity. Any
the
shift. from war
to
•bonds and
$27,000,000 of de¬
WHitehall 4-8980
cost producer of lead and zinc,
peacetime
conditions has not
large scale replacement orders
bentures.
and in the past few years has
in connection with the redemp¬
changed
the
status
of high
greatly increased its output of
tion of the Dominion 3s of 1968
grades.. Investment funds are
Kaiser-Frazer Stock
1 ■>
sulphur,- sulphuric acid and fer-, and anticipation of the possible
still around and since the bulk
The first sizeable issue for the
tilizers, in addition to making a
call early next year of the 3s of
of new financing
coming to
purpose of raising new venture
large contribution to the United
hand represents refunding, the
1953, 1958 and 1967, will be dif¬
capital was due on the market to¬
Nations' supply of mercury.
ficult toisatisfy and only de¬
supply of new securities of such
day in the form of 1,700,000 shares
Its strong basic position is fur¬
mand at higher prices will stim¬
>
The Bank of Montreal's weekly
type, outside U. S. Treasuries,
of $1 par value capital stock of
ther aided by the company's farulate the supply. The internals
is if anything, inclined to taper
survey of crop conditions in Can¬
the Kaiser-Frazer Corp.
ada dated Sept. 20 says that early flung interests in newly discov¬
section is likely to remain dull
off a bit.
In view
of the widespread
wheat'returns are grading satis¬ ered gold fields, which will be de¬
until the currency situation is
publicity which the new ven¬
Closing Big Month
factorily except in the dry areas veloped as soon as labor and ma¬
further clarified.
ture has received through the
but
the quality, of unthreshed chinery are available.
This week brings to a close one
Kaiser affiliation and its move
The
of the biggest months in recent
promising position
of
grain may be lowered in sections
prove

mental

ALBERTA BONDS

STOCKS

1

KING & CO.

•

Satisfactorily

Grading

has

Bond Club of N. J.

ing Co. directs favorable atten¬
tion to Canadian Pacific Rail¬

of the

moisture

excessive

Cutting,
completion and
under way in
Central ai;eas. Frosts

Prairie Provinces.

is nearing
threshing is well
it say,

Northern

in

at

report. Wheat
Prairies is es¬

297,000,000 bushels
with 410,600,000
in

grains at 430,-

compared with

556,309,000.
Province of Quebec, says

In the

of a
satisfactory grain crop is well ad¬
vanced and threshing is general
the

report,

Smelting, this vast Canadian

the harvesting

tremendous

inevitable

expan¬

ner

corporate

of

with

1

—i-_t

will be features.

olferlngs reachcd market.
Including Union Pacific

Rail¬
road's $81,620,000 of refunding
mortgage

bonds,

which bids

B,

series

on

opened yester¬

were

day, the total for the month was
expected to approximate $770,-

previous

week,

in this

portion of
plant

Bomber

Run

Willow

operated by Ford Motor for the
? during
the war,
the outcome of the current of¬

Government

fering should reveal rather fully
the
disposition of the public

>

toward such securities.

The

the

interests-and

Kaiser

have

already

interests

Frazer

subscribed for 250,000 shares

each

fixed for public

at the same price

in charge
of ar¬
offering, namely $10 a share,
000,000 provided, of course, no
consists of: John J.
rail or other issue, momentarily
Schermerhorn, Milliken & Pell;
unscheduled,
develops
before
C. M. Haight, Jr., Tripp & Co.;
next Monday.
J. William Roos, MacBride, Miller
American Telephone's financ¬
& Co.; P.' S. Russell, JrM Glore,
organ & Co.; John J. Ryan, J. B. ing stands as the biggest single
Ted R
Gamble, National DIacu
xv.
vjainoie, i\ational DiRanauer & Co.; Richard F. Saf- undertaking for the period, with,
Southern Pacific's $125,000,000 rerector, War Finance Division, has
fin, Boland, Saffin & Co.; and
financing running a close second, announced the appointment
of
Laurence W. Souville.

strength
was
translated
into
greater activity: As anticipated,
following the call of the Dominion
3s of 1968, high grade externals
were
firm, but offerings
were

There is very
doubt that the replacement

the

rangements

latent

negligible.

in leasing a sizeable

Committee

Turning to the market for the

lem

field

exceeded only in July last when
f
t" 1' '
mnrp than <t1 Ann nnn nnn _ „
annuaT field day'on I Xrin^rJnhMPffi °f "

Club of New Jersey

J

Sept. 28, at the Rock
Spring Club, West Orange, N. J.
The outing is for members only.
Golf, softball, horseshoes, riding,
swimming; luncheon and a din¬

sion.

past

,

Friday,

participate largely in Canada's

compared
1944, and coarse
991,000 bushels
-

The Bond
i.^1
will hoTd its
•11

&

accord¬

ing to the Bank's
production in the
timated

stock.
Owning a 51%
interest in Consolidated Mining
transportation system, which is
an integral part of the Domin¬
ion economy, can not fail to

occasioned little damage,

the total of
new
issues offered having been
exceeded only in July last when

the

in

underwritings,

way

Saskatchewan have

Southern and

years

To Hold Field Day

Consolidated Mining and Smelt¬

lately been reported.
The Bank
reports that wet weather contin¬
ues to delay harvesting over most

where

War Finance Division

little
prob¬

section will become

Ontario increasingly acute.
Officers of the club are: Wil- and Consumer's Power's $113,825,- Morris M. Townsend as Assistant
issue standing
of the'Baking and
iam C. Rommel, J. S. Rippel & 1000 issue Ktanrimcr well up'near
grains has
There was a resumption of de¬
vestment Section under Director
the top.
President; Frank R. Cole,
mand for Montreals, which still Co.,
been practically completed with
Stanley W. Prenosil.
Campbell, Phelps & Co., ViceOctober Holds Promise
below-normal
yields
generally appear to have scope for consid¬
,v Mr. Townsend
was Executive
erable
improvement.
Albertas President; Alexander Seidler, Jr.,
October bids fair to run the Secretary
for War Financed iii
reported. In the Maritime Prov-, were active but there was little Julius A. Rippel, Inc., Secretary;
In

districts.

most

in

of

threshing

In!

spring

,

<■.

,

.

,

inces
<

harvesting of a below-aver-

grain

age

quality
British
has

is

price.

change in

It is expected

and J. William Roos, Treasurer.

prevailed during the last two

rainfall in the

Taylor, Deale
•

&

->

YORK 5

•

I

•

»

"

'

k...

....

*

\

.

i

weeks

CANADA—

of The Canadian

Commerce,

has

been

Vice President of the

Bank of
elected

bank.




there

is

>.

a

in

or so.

a

Government

♦

Provincial

•

Municipal

*

Corporate

j

he

Army in December,
he

attached

was

the

next

Courier

He

to

issue

Service
....

of

-

•

also

was

y

in

-vrT7,

the Army
Washington.

given assignment as

between the War

Finance

Committee and financial

institu*

tions in the

three

if it material¬
izes, as now expected, would in¬
volve the .transfer to public ownership of the properties of Puget
operation,

•

1943, where

—

liaison

The

This total includes

State of Washington.

This

City and Long Island
volunteered
for the

York

before

tt-

issues slated to move to

prospective

the

canadian securities

New

~..t

around
$135,000,000 - of revenue bonds
by Public Utility Districts of

a

Stanley M. Wedd, General Man¬
ager

new

investors
.i.\....

Bank of Commerce
TORONTO, ONT.,

in

potential
backlog of close to $500,000,000
Already

in

WHitehall 3-1874
%

race,

as

start about a month hence.

Company

64 WALL STREET, NEW

lower mainland.

Wedd Elected V.-P. of

volume,

of

t

Columbia cooler weather

weeks, with some

close

a

corporates
push to get their refunding operations through in advance of the
•
Victory Loan Drive scheduled to
point

fairly good
well, advanced.
In
of

crop

month

current

new

formerly
firm
is

Assistant Director was

with

of W.

well

Capital.

known

banking circles.
citation

the

for

Wall

Street

E. Hutton & Co.

in

and

investment

He is holder of a

distinguished service

rendered in the 7th Wat Loan in

the District of Columbia.

ft

Volume

THE COMMERCIAL & FINANCIAL

Number 4424

162

pared with $44 billion at the

Holds Banks Can

Expand Credits

Guaranty Trust Survey Points to Contribution of Banks in Supplying
and Maintaining at the Same Time a Strong

Government Financial Needs,

Position, Which Enables Further Expansion

the

contribution

sources

,

Government

war

$19 bil¬

and

banks,

commercial

present position of the bank¬
ing system to supply both Gov¬
ernment and business with cred¬
its.

contribution

the

banks

the

of

Federal

is, of course, out

unprecedented financial of all proportion to its numerical
because in purchasing
made upon the nation's amount,
banking
system
during
nearly Government securities the Re¬
four years of participation in the serve banks place additional re¬
serve funds at the disposal of the
war have been met without seri¬
ous
strain,"
says
the
Survey. commercial banks and thereby
enable the latter to expand their
"Although the task of meeting
those demands
has resulted in own security purchases.
"The
principal
objective
of
broad changes in the condition of
the banks," continues the report, Federal Reserve policy during the
bank¬

ing system as a whole in a strong

finance reconversion
supply the credit require¬
ments of post-war trade and in¬
dustry. The main financial prob¬
lem during the next few years
will not be to provide adequate
position

to

and

but

facilities

credit

that

often

so

*

financial

were

war

which

with

success

enormous

the

dis¬
from

Position

Financial

Strong

*The

and

credit expansion."

wartime

,

the

avoid

result

instability

monetary
order

to

the

exigencies of

met was due partly

could

such part of the
needs as
readily be met from

not

of member banks,

reserves

which

$3.8 billion at the
time of our entry into the war,
were allowed to decline gradually
about

totaled

loan

war
no

/

/

Cleveland

Investment

who

veterans

I•

program,

You,

well

as

to

dealers,

and

brokers

invited

other

all

as

attend

meeting
on Friday,

a

to be held at 3:30 p.m.,

Mid-Day Club,
will have the
pleasure of hearing J. E. Crouch,
training officer of the Veterans'
Cleveland Security Traders Asso¬ Administration,
and
Dr. J. E.
Com¬
ciation; the Investment Bankers Jones, vocational adviser.
Association (Cleveland members), plete details will be disclosed and
and the National Association of all necessary information will be

placement pro¬
gram is being sponsored by the
Cleveland Stock Exchange; The
Bond
Club
of
Cleveland;
the

21,

Sept.

factors,

the

expansive possibilities inherent
in the present banking position

Ac¬

would
of

deposits, against which
is required) averaged

be

be far in

to

excess

probable demand in the
As far as can now
foreseen, the short-term credit
any,

near

$89 billion, leaving a pos¬

seem

futyre.

needs

will

reconversion

for

be

the

at

At this meeting we

furnished

uncertain

these

for

reserve

about

are

center for all of the
qualify under our

Cleveland

The

tual member bank deposits in the
second half of June (exclusive of

The excess

serve

placement

Dealers' 'veteran

requirement

to $278 billion.

or

reserve,

will

ministration.

against all member bank deposits
is about 15%%, so that member
bank deposits could be expanded
to
times the amount of the

financial

non-jDanking sources.

reserve

average

land

States Government Veterans' Ad¬

deposits. With non-member de¬

The

Dealers, Inc. (Cleve¬
members).
The Exchange
as
the clearing and

Securities

personnel.
A rare oppor¬
tunity presents itself to our pro¬
fession by virtue of the "G.I."
Bill
of
Rights and the United

ing

posits at $2 billion, there remains
$42.8
billion . available
against
member
bank reserve deposits.

supply

to

additional securities business both from the
reconversion standpoint of clerical and produc¬

At 25%, this reserve is
sufficient to support $44.8 billion
in

into the

new men

any

deposits.

has, in effect, been to keep
the commercial banks in a posi¬
Government's

sity of bringing

billion, of which only $6
billion
is
required as reserve
against notes, leaving $11.2 bil¬
lion available as reserve against

war

tion

(Continued from page 1460)

be made avail¬

$17.2

demands

"it has left the commercial

meet

a

Veterans' Placement Program

that
and
post-war industrial expan¬
sion may bring.
Reserves of the
Federal Reserve banks now total

"The

.

can

requirements

lion, or 6%, by the Federal Re¬
serve banks.
The importance of
Reserve

which

to

able

of the

the

Cleveland Dealers Announce

Expansion

possession of large amounts of re¬

No Large

banks to
financing and

for

.

"The financing of the war has
left the Federal Reserve banks in

Demand for Commercial Credits.
The September issue of the "Guaranty Survey" published by
Guaranty Trust Company of New York contains an analysis of

the

•

Capacity

Sees

of Credits if Needed.

end

1941.

of

146?

CHRONICLE

regard

in

to

pro¬

our

gram.

...

note the

Please
of

meeting, and we hope to
full cooperation of all

this

have

date and time

the

Cleveland.
plan to
be offered to our industry, and
not only will it be copied in other
large financial centers, but we ex¬
pect it to be given nation-wide

brokers and dealers in

This is the first organized

billion in
moderate,.
Industry will require
deposits and hence in loans and
large amounts of fixed capital
investments.
The capacity for
and
considerable
quantities
of publicity.
&
to about $1 billion at the end of expansion could, if necessary, be
Very truly yours,
1943 and have since been held at made much greater by reducing working capital, but business as
a
whole is in a strong financial
Cleveland Investment Dealers'
or
about
that level, with only member
bank reserve require¬
position and seems likely to meet
Veteran Placement Program.
temporary fluctuations above and ments to the legal minima (which
a substantial
part of its require¬
below.
Morton A. Cayne, Chairman,
were in effect from 1917 to 1936)
ments
without
assistance* from
and by numerous other means at
the commercial banks.
A recent
Federal Reserve Operations
the
disposal
of
Treasury and
iS
survey
by
the Department of State Laws Governing
"The main instrument of this
Federal Reserve authorities.
Commerce indicates that utilities,
1*1
policy has consisted of purchases
"This calculation is based on railways and manufacturing com¬ Mortgage Investments
of Government securities by the
the assumption that other factors panies will spend nearly $6 bil¬ Analyzed in Booklet
Federal
Reserve
banks.
Such
will remain unchanged.
In par¬ lion for fixed capital requirements
The Mortgage Bankers Associ¬
purchases have been sufficient to
ticular, it assumes that no further during the next 12 months and
increase the Reserve banks' hold¬
ation of America has published
outflow of gold will occur and that manufacturers will increase
"State Laws Regulating the In¬
ings • of Government obligations
that there will be no further in¬ their working capita^ by nearly
vestment of Mortgage Funds," a
by nearly $21 billion ^ince the
crease in the amount of money $5 billion during the same period.
end of 1941 'and, supplemented by
book summarizing the legislation,
in. circulation.
The validity of The industries surveyed, however,
smaller
amounts
from
other
in all states affecting mortgage
these assumptions is open to ques¬ apparently intend to finance from
sources, v have
poured
enough
lending. The study includes leg¬
tion.
The volume of funds .held their own resources and from the
funds into the money market to
islative-changes made
by the
in this country for foreign central cash proceeds of current opera¬
State Legislatures .this year* and
supply an increase of more than
banks and governments and for tions three-fourths of the antici¬
shows the action taken by these
$16V2 billion in the amount of
private owners *(the latter con¬ pated
expenditures
for fixed bodies on G. I. loans. The study
money in circulation, to meet a
mostly
of
short-term assets and the increase in work* was made in cooperation with the
decline of nearly $2% billion in sisting
banking funds) represents, in the ing capital.
In the case of the states' * banking " and
the gold
insurance
stock, and to provide
aggregate, a large potential claim utilities, less than 1% of the con¬ commissioners. -The limits withip,
more than $3 billion in additional
against the gold stock, Although templated financing is scheduled which state banks, trust funds, in¬
member bank reserves.
This last
there is a very substantial off- to come from bank loans.
surance
companies and savings
amount, together with the excess
- „
sible expansion of $189

•

jto tjie use of much sounder fi¬
nancing methods than were fol¬
lowed during W.orld War I, but
even
more largely
to the good
the

had ~ placed

that

fortune

United States in

possession of the

strongest monetary' base ever en¬
joyed by any nation in the world's
history. * From the time of the
devaluation of the dollar in Jan¬
1934,

uary,

the entry of

to

nation into the war in

the

December,

1941, the gold stock of the United
increased from $7,036 mil¬

States

$22,774 million; the ratio
to deposit and note
liabilities of the Federal Reserve
banks rose from 65 to 91%, as
lion

of

to

reserves

against a legal minimum of 35%
against deposits and 40% against
notes;
and
excess
reserves
of
member
banks
increased
from
„

about

$900 million to more than

$6,900 million in October, 1940,
declining thereafter to about $3,800 million at the time of our
entry into the war.

v

seeking
to avoid a repetition of the mis¬
takes made in financing World
I, has consistently aimed at
the twofold objective of meeting
War

large a share as possible

cost

the

of

war

of the

through current

of borrowing as
much as possible of the remainder
from
non-bank
investors.
Mr.
and

taxation,

Morgenthau, upon his retirement
the
Secretaryship of the

from

Treasury in July of this year, was

report that 'in contrast
with World War I, when less than
one-third of our expenditures was
able

to

from

financed

taxes

and

other

non-borrowing sources, we have
in this war financed 41% of our
total

expenditures

1940,

*

from

such

since

July

sources

States in¬

has been sufficient to

commercial

banks

to

permit the
absorb the

1,

and

as

"The

commercial banking sys¬

supplied about 26% of
the financial needs of the Gov¬
ernment during the war period,
has

-




As

1

supplying

"In

these

and further inroads
into

made

the

end

1945

seems

likely,

therefore,

governmental

tinue to come from

rather than private sources. Even
if the latter prove more important

than now appears

<

need be

no concern as

of credit

any

reasonable allowance

ity

not

to

Washington Street, Chicago.

by any

shortage

This announcement appears /or purposes
sale

legal minimum. The Federal
Reserve Board accordingly rec¬

the

or a

solicitation of

ommended legislation providing
for a reduction in the reserve re¬

61

M.

Loeb, Rhoades

Broadway, -New

October 3.

oj record. It Is not an o/jer oj securities /or
an

oj/er to buy securities.

excess

General Mills, Inc.
3%% Cumulative Convertible
,

Preferred Stock

$100 Par Value

Stock and 93,091

99,758 of these shares were offered by the Company to holders of its Common
shares were subscribed for upon exercise of Subscription Warrants issued to such holders.

purchased by the undersigned and associated
severally. No general public offering of such shares is contemplated by the
balance of 6,909

shares has been

of the figure at

with an increase
than $60 billion in hold¬

the end of 1941,
of

more

ings
and

Dillon, Read & Co. Inc.

of
Government securities
comparatively small declines

September 21, 1945

{.

1

& Co.,

City,

Exchange, will admit J. Herbert
Higgins to partnership in the firm

100,000 Shares

quirement to 25% in gold certi¬
against both notes and de¬
posits, as against the existing
figures of 40% in gold certificates
against notes and 35% in gold
certificates
and
other
lawful

in

York

-

members of the New York Stock

ficates

billion

j

Carl M« Loeb to Admit
Carl

ort

facilities."

.

——i—i

of

be impeded

Copies are available on request
the Association at 111 West

to the abil¬

peared.
"With

industrial

invest ii*

mortgage loans are detailed.

probable, there

the banks to supply the
necessary funds.
Smooth, orderly
and rapid transition from a war¬
time to a peacetime economy will

in

end of the war

and loan associations can

demand for bank credit will con¬

were

the ratio by
would be near

reserves,

of

it appears to have
generally assumed that the

"It

that for some time the principal

payrolls at
would result
in a diminution of demand for
currency
for hand-to-hand use;
but no such tendency has yet ap-

deposit and note liabilities was

abated

amount of money in

the

decline

the

require¬

gradually approaching the minimum figure required by law.
It
was
calculated that, if the de¬
mand for currency continued un¬

for

been

ments, the Federal Reserve banks
found that their ratio of reserves
to

in

circulation,

already noted, at a general
of about $1 billion.

of the Treas¬
in other investments and in loans.
ury to rely to the greatest pos¬
Deposits exceeded $141 billion, as
sible extent on other sources of
funds.
About $70 billion, or 20% against less than $82 billion three
Demand deposits
of
the
Government's
require¬ years earlier.
totaled nearly $92 billion, as com¬
ments, has been provided by the
despite the efforts

sults

level

of 46% in the fis¬
cal year
1945.'
The success of
money against deposits.
The pro¬
the effort to borrow from in¬
posed reduction became effective
vestors other than banks is meas¬
on June 12 of this year.
ured by the fact that, of the $211
"The
principal effect of war
billion increase in the interestfinancing on the condition of the
bearing public debt from July 1,
banks has been to produce a very
1940, through July 9, 1945, about
sharp rise in holdings of Govern¬
$122 billion was absorbed by nonment obligations and a roughly
bank investors and about $89 bil¬
lion by commercial and Federal equivalent increase in deposits.
Total' loans and investments of all
Heserve
banks.
banks in the United States at the
end of 1944 were more than $58
Contribution of the Banks

reached a peak

tem

demand

amounts of Government
securities and at the same time

necessary

further
foreign

in case
for American goods re¬
an export trade balance.

offsets will appear

to maintain their excess reserves,

"The Federal Treasury,

as

.

by member banks^setting factor in United
vestments
abroad,
and
at the time we entered the war,
held

reserves

The
underwriters,

underwriters.

THE COMMERCIAL & FINANCIAL CHRONICLE

1470

Thursday, September 27, 1945
It

The Faith That Makes Sales
Radio & Electronics

Corp.

hen

china egg.

Unless
the urge to buy is as great as the
urge to sell, there can be no great
prosperity
The war's end is a

Common Stock

a

on

a

...

Prospectus

on

signal to put our selling and ad¬
vertising
activities
into
high
gear."

request

There

salesmen were given an

immediately

went out

5, N. Y.

has

tremendously big—
important—job to do.
Yes¬
terday it was thfe production ex¬
perts and the scientists who were
essential to the national health,
safety and welfare. Today yours

few

a

Several of these customers have given him repeat business.
The sales volume derived from this particular group of leads has
accounts.

paid him for his effort and just a bit more.
:

right out and make his calls.

salesman did not go

second

The

a

the

is

lead

stopped and investigated FIRST. He took each name and checked
revealing facts about the prospect be¬
fore he made his calls. First he checked occupation by using the
He

to see if he could find out any

Your No. 1
is to

move

undoubtedly
merchandise—as

job

now

your

inexpensively

possible and as
possible—from the
factory through to the ultimate
consumer.
This challenge is so
great that it seems presumptuous
to suggest
you
must undertake
another job. But, in fact, unless
you undertake this other job, your
chance of succeeding in the first
much of it

as

as

.

conducted b.y some of his friends and customers. He called his
to find out if they knew those particular individuals,

were

customers

discovered

While digging around for pre-approach information he
that two of the prospects were very substantial investors

AND ONE

WHICH HE

HAD AT¬

WAS

TRUSTEE OF

A

This

TENDED.

this' valuable

with

Armed

,

UNIVERSITY

THE

turned out to be

man

large security buyer.

a

he

information

set

sales

campaign. He went forth to battle with a reserve force of sales
equipment which the first salesman did not possess. He also had sev¬
objectives that IF THEY COULD BE TAKEN WOULD

eral marked

HIS

GIVE

FORCES

S'i:

OVERWHELMING

AN

After about six weeks

tion

actual

and

INSTEAD

VICTORY

SKIRMISHES.

WINNING A FEW

OF

of this

work

sales

gave him more profit than
salesman number one.

in

field—he

made

sale

one

the combined sales which

that

made by

were

"

rt-

The

not

trustee

only handled his own investments but also
supervised the portfolio of securities owned by the university.
This
knew his

man

business.

When the salesman

prepared to talk in

was

HERE
ON

A

WAS

HIS

CALLING LIST.

Most

call he

first

never
man

spent over
learned the

cussed

a

letter which

a

was

stockholder. 'He"asked his firm for the privilege of mailing
to his prospect.
Permission was granted. A photostatic

a

copy

copy

prepared and along with it
the salesman.

was

was sent a short and

The prospect

friendly letter from
acknowledged its receipt and stated he

ested at the time.

It

a

company

circular which

a

in which his firm

inter¬

was

the type of

was

security that his prospect liked
(he knew this because of his revealing first interview). Along with
this analysis he sent another letter asking for an interview to discuss
the

situation

in

detail.

made and it alone

The

interview

was

granted.

The

sale

was

worth more in commissions than all the little
sales the first salesman had consummated.

This

was

from

account

now

on

will

bring salesman number two

a

large volume of business, and it will take less of his time and
energy,
salesman number one will expend in months of
patient and
unintelligent plodding.
;
,

gloomy

people with dark
forebodings about the security of
their jobs.
All the evidence—public opin¬
ion polls included—shows that in¬
dustry again has a reasonably
good standing with the public.
It seems plausible to say the
for this is the "miracle of

|bclishing War Time
'

Standard

to

time,

of

result

a

the

clocks which
hour in
ated

as

a

and

back

one

Congress
means

provide

daylight working
turned

set ahead

1942 when

fuel

signed by

Sept. 25. As
new
legislation
on

were

wartime

serve

was

hours,
hour

at

to

one

cre¬
con¬

longer

on

the

House

Sept.

12

House

Committee

-Without

voted

that's

other half is that

industry (1) has

war production story
intelligently and effectively to the
public and (2) has demonstrated

presented its

its

in the

interest

public welfare
by its advertising sponsorship of
official

war

programs.

one

index

attention

more

of

much

how

industry

paid

to

end

war

its story during the war
years is a compilation made by
the
Bureau
of
Advertising.
It
shows the dollars spent for in¬
dustrial public relations advertis¬
ing. An increase from one million
in

1939

17

to

These totals
stitutional

are

million

by

1943.

for so-called in¬

to

Tribune,"

said:

say

most modern sense—not

our

pre¬

concept of it.

war

In

Albany it was explained that
the signing of the Federal bill
ending war time at 2 a.m. Sunday
automatic

an

return

to

Standard time in New York State.
An

act

creating

New

York,

with

the

war j.

passed

State

in

War

It is

time—

the

acted.

Congress

be in

effect."

time

in

connection

Emergency

'Way unanimously approved by the

.

.

shall

cease

y..

to

passed

meeting

resolution

a

its

at

calling attention

New York

end

of

as soon

war

as

this

as

need?

we

If

last

to

the

time

in

the Federal

provision had been passed.

\

>

people in its

toward

condition should be allowed

eral

thinks about business in gen¬
is a mosaic of his feelings

has

businesses

the

has

and

contact

with' which

which

of

he

has confi¬
dence in these businesses, he is
likely to have confidence in busi¬
ness in general, and if he does not
have confidence in the particular
knowledge.

If he

businesses

he knows about, then
likely to be critical of all
industry
"Actions
speak
louder
than
words, but words are necessary
because we must bring our story
to millions beyond the direct in¬
fluence of the things we do."
>

he

is

.

..

*

to

worse,
any interest of
sales, purchasing power or
markets will be purely altruistic.

grow

in

ours

Much

of

the

oughly sold

on

public is thor¬
the merits of our

advertised branded products.

But
still quite far short of
being entirely sold on what is be¬
hind the product—the corporation
are

that

makes

it

and

the

system

Another

one who, as
a re¬
expert, has delved deeply

search
into

—

the thinking and

aspirations
earners—has well said, in

of wage

similar

which permits the producer of su¬

its

or

officers

and

directors.

reports "Printer's Ink" in

a

So

recent

issue.

Industry is still—and will
always be—in a very real sense—
trial before

on

the

bar

of

public

opinion in this country.
Many of you, I trust,

vein:

*

"The company

;

that will talk to

I

am

Methods

of Maintaining

Public

Confidence
There

is

of

ap¬

occasions in the last

numerous

decade.

It

their

is for

large industrial
pool their resources—

to

concerns

their trained man¬
and sometimes agency tal¬

money,

power

ent—to

carry

out

a

program

in¬

structing the public in the merits
of free enterprise, the American
way, freedom of competition or
opportunity, and so on.
Many of these jointly sponsored
helped create pub¬

programs have

lic

understanding.
Some
have
particularly good—especially
those designed to serve as a back¬
drop for advertising on the same
theme by
individual
companies
cooperating in the program.

been

is

in

ordinated

certainly
such

no

fault in¬

cooperative,

co¬

programs.-But I would

that

caution

method

this

alone, and not

as

a

if

used

backdrop for

individual efforts, can never do
the entire job that needs doing.

of

are

public

and

to fathom
relations

entirely separate in his

organ¬

Perhaps it is sometimes
wishful thinking that causes us to
try to separate advertising from
public relations. There are still,
unfortunately, a few of us who

thinking this method alone can
effectively persuade the public to
preserve the good in our economic

the public did not judge us by our

We in industry want to
stick to our knitting—mind our
business. Which is making things
and selling them, isn't it?
We
don't want any public relations,
thank you — certainly not if it

advertising—if all

means

would have cause for

were

rejoicing if

our advertising
inevitably and insepara¬
instrumentality of public

not

an

is

another

I

might

statement

even

It's

more.

the

still too often made

ists—that

we

lie relations

say

about
me

statement-

by industrial¬

don't have any pub-,

or we

public relations.

don't want any

have to

do

extraneous

things like teaching higher
nomics.
ens

Parenthetically,
there

system.

we

So

a

eco¬

help support doz¬
of organizations to carry the
we

whole burden of

bringing to

pass

millenium in business relations.

But
any

we're

really not supporting
of them if we try to shift the

whole

responsibility

shoulders.
There

is

after the
surprised at the
speedy spread of interest and en¬
ployment
war

.

on

to

their

-

primary

.

and

wages

will be

...

not. inter¬
of business
interested
in General Electric Company, for
earners

are
ested in the programs

associations.

They

and

in¬

Maybe, as with dispensable way to inspire faith
other kinds of relations, we don't in American industry and in our
Want
any—but, like it or not, system of industrial democracy.

are

individual

an

en¬

The G. E. trade mark is
something they know, which they
have seen on the products they
buy and use.
That is something
real.
So are U. S. Steel, and hun¬
tity.

dreds

manufacturers.

other

of

Companies are individuals which
be comprehended.
They are

can

abstractions

which

shy

associations

and

intangible

are

which the
to

man

away

and

from

in the street tends

and suspect. So the

story of industry's planning must
be presented to the wage earners
by
individual
companies
over
their

own

names.

"Advertising is the most effec¬
tive means for doing this impor¬
tant public relations job. It then
becomes
a
direct,
personalized
message from a responsible per¬
son.
It is straight and ungarbled.
It is handled

tends

Let

as

the advertiser in¬

It

carries

trade

name."

it.

the

of

the

prestige

"Amen" to the
advertising is a
most effective means of getting
our story over to the
people.
In¬
me

statement

say

that

deed I don't
could

we

know how

ever

on

earth

without

succeed

harnessing the advertising meth¬
od.
The
advertising method, if
properly utilized, can
get our
story across because, unlike any
other method of communication,
it starts by finding out through
research what people want and
what
appeals they respond to,
what they are confused about and
where

they

dramatizes

misinformed—it
simplifies
the
terms of the other
are "

and

message in
fellow's interests—it channels the
messages to the desired
in predetermined units
or

audience
of

space

time and at desired intervals—

and it

repeats and repeats until
sinks in, until ideas

the message

moved, from

are

another...,

one

mind

to

,

In the infancy of public rela¬
tions, all of the various publicsstockholders, dealers, employees
and so on—were neatly labeled
and treated as separate and dis¬
tinct

one

.

"Wage

not

method

one

what that company -is planning to
do to maintain production, em¬

that to them is

do not
tilting at windmills.
So let's consider together how we
should go about maintaining and
increasing that public confidence
which is indispensable to us.
think

advertising

me

public relations which startles

.:

The State War Council likewise

authorized

ending daylight saving

.

.

of our Gov¬
enough confidence

master

much

us—as

aroupd
that the

Ever and again some of us in
industry keep making the mistake

quite beyond

relations.

act of

public—the

is

reflect

the mind of any one who says that

ization.

means

this

ernment—has
in

'take'

average

Does

herent

that I use the term
relations"
here
in
the

me

should continue in the1 state until
"the advanced time fixed by the

Commerce




"Herald

the

and

65%."

There

advertising only.

Advertising and Public Relations

Act, provided that advanced time

previous
day,
dissent having similarly

The bill

sent

With the sign¬

.

York

instance

he

to

telling

be

unanimously

Interstate.

the New

For

on

a.m.,

Sept. 30.
The

and

others.

are

proach often proposed and utilized

drives, bond sales, nutri¬
But
only the half of it.
The

bly

will
2

20,

ing of the bill by the President,
Press -advices
from
Washington Sept. 25, published in

Associated

The
bill
passed by Congress
abolishing war time, or daylight
saving time on Sunday next, Sept.
30, when the nation will return

President Truman

Sept.

on

•

business, is
largely by its feelings
by intellectual con¬
viction," he says. "What any per¬

about

its

"public
Senate

the White House.

of the

mass

son

now hanging up.
Also
standing has been en¬
hanced because of the public ser¬
vices industry performed — with

that

Let

Signs Bill

"The

attitude

Leslie Gould, Financial Editor of
the Hearst newspapers,
reports:

'is

dustry

than

President

concern

thusiasms.

visions of better tomorrows

Just

A few weeks later the salesman sent the trustee

its

gen¬

demon¬

Perhaps this hardly needs say¬
ing. I hope so. But I am reminded
that
Ralph Starr Butler, vicepresident
of
General
Foods;
thought it worth saying.

there

—

appreciated this information.
analyzed the securities of

actions

its

the

to

for the general welfare.

they will
buy and keep on buying.»
If
that
isn't
reason
enough,

that

tional education, and so on.

written to his firm by the president of a certain company. This com¬
pany was one of the several which the prospect had discussed in
the first interview. The letter was informative and of interest to a

by

to

(2)

moved very
rather than

—so

its scrap

holdings AND HE REMEMBERED THEM.

strate

and

with

raculoj^s reconversion record in¬

saw

in

own

salesmen get into his office once,
This salesman consumed two hours

month after this interview he

a

faith

welfare

to

understanding of

contribution

own

eral

is for

(1)

perior merchandise to grow big
security. This confi¬ and sometimes prosperous. By way
more
of example, 65%
of newspaper
to do with product sales than all editors say that
people generally
the figures on pent-up demand regard the products of a large
and dammed-up savings.
People corporation more favorably than
are
markets
clear-eyed people they regard the corporation itself
in their

production," and the equally mi-

15 minutes. During that first interview the sales¬
basic preferences of this investor—he also dis¬

few of his

About

people

ing to increase the people's faith

reason

the first call—those who didn't get the opportunity to call again

on

give

public

It

way.

concern

the wage earners in terms of their
own
interests
and
aims, about

HAVING

WORTHWHILE

—.

will

future

they

•

that convinced the trustee that

WHO

and only a few more than once.

made his

van-

,

WAS

manner

a

SALESMAN

.

J-1bis secom1 task is to maintain
and i:ncr<ease the growing conhdence ol the American people
American industry—and by so do¬

not

kind of pre-approach investiga¬

the

public-relations
to inspire a confidence

dence—this faith—will have

his

up

con¬

be

to

which

primary

today is cutting it¬
self in for anywhere from 50 to
80% of the net profit in business,

telephone directory (Doctor, Lawyer, Merchant, etc.). He looked up instance
may diminish to the
several leads and found these prospects to be interested in lines j^iantemay
of business that were allied with other types of businesses, which*r.

:

tinue

the

on

and

in industry must

we

a

"Government

role.

Advertising Tasks

he automatically opened

have touched

I

reason

their

and

equivalent number of leads. One
and made his calls.
He concien-

and

lead

followed every

tiously

any

conducted

mutually satisfactory
profitable basis.

minded

By JOHN DUTTON
Two

be

are

a

on

of you

The Securities Salesman's Cornei
salesman

to

seem

The only question
are going to assure

that such relations

controversy at all—not even any
doubt—about it, gentlemen. Each

Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW YORK

doesn't

is whether we

obvious

industrial

its

we've got 'em.

the

create

(Continued from page 1451)
as

is

every

compartments.

This meant

basing public relations
est

denominator

of

on

the low¬

common

in¬

terest.
As -R; T.

Haslam,

a

director of

of

Company

Oil

Standard

the

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

.Volume 162

New Jersey, has

pointed out: ;v
v.; "We just can't lump people into
classes by labeling them 'capi¬
talist'

man'

'common

or

any¬

or

teach economics to people of av¬

An

mentality.

erage

impressive
anti-

start has been made with the

inflation

Back in 1942

program.

Coun¬

when the War Advertising

cil first undertook this campaign,

One

topic about which people
want authoritative in¬
formation from industry is the

currently

Industry fully

Supply situation.;

recognizes that it is to the inter¬
est of all concerned to give peo¬

be a cap¬
some
economists warned it was ple this informatipn in ungarbled
savey—but he is
form * thrOugh
Advertising. To
also many other things—a citizen, hopeless to try to repeal the law
of supply and demand. We didn't avoid confu&on by assuring that
a father, a Presbyterian, a Demo¬
WPB and industry's statements on
crat, a worker with his hands, a exactly repeal the law, but we
haven't- had the runaway infla¬ the availability of consumer goods
consumer."tion they predicted either.
After are in accord, a special commit¬
this campaign had been running tee of ANA, under the leader¬
{ Finding the Highest Common
Denominator
—thanks to generous space do¬ ship of Charlie Carr, has been
working in an advisory capacity
The advertising method recog¬ nated by the magazine publishers
to WPB, with excellent results.
nizes this and sets about to find —Elmo Roper made a survey and
found that people had grasped the
the highest common denominator
Competition for Leadership of.)
inflation
would
among
the public—in interests, reasons w h y
Public Opinion
threaten their security and that
hopes, aspirations. It remembers
If industry should turn its back
as a result people had taken the
that we are all pretty human. It
A

thing else.

man may

italist—that is

a

knows that the best way to
unfounded

suspicion

avoid

among

em¬

in the local community
and with the public at large, is

ployees,

take these folks into our

to

fidence—for example, by

con¬

render¬

them in
not just
stockholders.

an annual report to
terms they comprehend,

ing

stopping with the
The advertising method, too, has
found through research that stock¬
holders don't mind at all receiv¬
ing

an

interesting

and readable

annual report.

relations like char¬
ity begin at home.
Some public
Good public

i

relations

programs

are

concerned with all the

so

much

hypothet¬

publics that they forget all
about
people — the
people on
whom a company depends most—

ical

its

employees.
Amazing things would happen,
I am sure, if when talking about
their company and its manage¬
,

began saying not

ment, workers

but
"we"—and
really
thought it and meant it.
Much that is good is being done
in this field.
One of our member

trouble to learn the seven simple

they personally

ways

the subject.

interest

ing them what they want to know
if - we intend to demonstrate that
concerned with
important rev¬
olution took place in business
public relations during the war.
Many businesses stopped using
their advertising to protest de¬
fensively that they were in the
public interest and began demon¬
strating that they actually were.
They demonstrated it by sponsor¬
ing official war advertising pro¬
grams, such as war bonds, con¬
servation
and
recruitment,
in
really

we

are

their welfare. An

cooperation with the War Adver¬
tising Council.
These

to Jtnow;

and, second, of
telling them what they want to
them

ing job because its program is
soundly based on the enlightened
self-interest both of the employ¬
ees' and the company.
Let me

sive—they

it's typical:

member of the Shell
family will make just a few good
friends, and will have a good
word for his associates and his

within

company,

a year

the Shell

family will have thousands of new
friends and supporters.
And a

good, strong, well-liked company
is a mighty fine guarantee of a
good, steady job."
Why not continue in this post¬
war era to use some of your ad¬
vertising to tell about the com¬

pany's employees, to tell a little
perhaps about the ways in which
their
company
recognizes their
services, to explain what provi¬
sions the company is making for
employing veterans.
And when
you talk about new products, why
not suggest that these mean more
jobs and better ones,
i
But let's not stop there.
The
need goes deeper.
It has been
well put — and, interestingly
enough, by one outside of the bus¬
iness, with an understanding of
human relations, namely, Dr. Mc¬
Carthy of Notre
"We

must

use

advertising

to

not mutually exclu¬

have been.

never

America have been doing a mag¬

job
of
providing the
straight facts the people want—

nificent

infla¬

know—about

to

need

and

we

what then?

Don't worry,

plenty of
leadership

other
of

welfare,
there are

candidate's for
public
opinion.

sense

policies

increasing their
particular time.
foresee

can

far

so

at

this

time—perhaps

it

away—when

may

a

the

"Radio TVA"

operating a radio net¬
as a "yardstick" by
which
private
radio could be
judged.
Here is the CIO issuing
bulletins,
pamphlets
and
its
monthly Economic Outlook, show¬
ing that American industry made
a
"profit" of $24.9 billion "during
not
1944—but
saying that this
work to

serve

being kept as a reserve

the rest

expansion or maintenance of
employment
and other proper
purposes. Next, there's the United
Automobile Workers (CIO), which
has already applied for its first
F. M. radio station licenses in six

for

.

the expressed

"concentrating

of

educational
.

with

cities,

intention

features,

on

including

economics, political and so¬
Then there's the

,

sciences."

cial

labor press,

with its circulation of

million.

18

their
room

not

it

war

the

of

leave

efforts—and
for their

for

more

food

that I do
believe that

a

moment

of

the

proper

techniques.

mat¬

of adver¬
Charlie Carr,

use

etables

the

more

fruits and veg¬
It

sell.

of

making people
sponsor, with
whom
they
were
previously
uncon¬
cerned, as deceitful or ridiculous.
I believe a public relations pro¬
gram such as I have outlined will
pay for itself and ultimately re¬
duce

Such

costs.

there

evidence

as

is bears out this view.

now

Here, for instance, is

a

since 1937

cents.

is

cereal

a

advertising

product

and

public

relations advertising—but instead
should recognize that alLadvertis-

ing

can

and does by its very na¬
an important effect on

ture have

public relationships—that, in
truth, every advertisement can do
a constructive public relations job

our

When

who

—that it pays to devote a signifi¬
cant
part
of
his
advertising

Here

lit¬

for its sponsor.

during the war—

who has found, in fact,

more

fallacious distinction—between

no

brewer

distribution

national

distinction—or to be

no

erally true, that we should make

manufacturer

have

we

fully

learned

advertising will resemble a
small
city
in
Eastern
Europe
described
by
another
West, Rebecca West.
It was, she
says,
"so civilized that it could

this,

certain

4

conceive of

a

God who would be

pleased not by the howlings of His
worshippers and the beating of
their breasts but by their gaiety,
by their accomplishment, by their
restraint and

dignity."

in that

brand

finds

consciousness

at

an

all-time

high, from identical pub¬
polls made before and near

lic
the

end

of

the

I

war.

leave

to

imagination the effect this

your

will have on sales.

Placing Welfare

on a

Profit Plane

Thontas Rose Joins
Dallas Rupe & Son
DALLAS, TEXAS—Thomas A,
Rose, Jr., has joined the invests
ment banking firm of Dallas Rupe
& Son, Kirby Building, as head of

our

was

Department.

Mr»

formerly with the Prov¬

of Phila¬
delphia in the security analysis
department.
He
attended
the
University of Texas and the Uni¬
versity of the South at Sewanee
and received his master's degree
in the Harvard Graduate School
Trust

ident

This business of being interest¬
ed in the friendship and the wel¬
fare of

Statistical

the
Rose

customers has too long

of

Company

Business.

served

as

In

Dallas

he, has

chief accountant for the

He
altru¬ was released from the Army in
where August, after service with the Air
it belongs—on a plane of profit.
Transport Command, stationed in
We at ANA are undertaking a
Dallas.
research to get some evidence as
to whether it does pay in cold
cash to do an intelligent job of
Spear & Leeds Partner
public relations and public serv¬
Spear & Leeds, 54 Pine Street,

been

Central Contracting Company.

on a plane of
It should be placed

placed

ism.

advertising.

YOrk

New

York

admit James

also preparing soon to
comprehensive study of
the corporate functions of adver¬
tising, a study based on a thor¬
ough examination of a cross-sec¬
issue

City, members of the
Stock Exchange, will
Crane Kellogg,13rd,

New

are

a

We

Exchange member,
in the firm on

to. partnership

Oct. [1,

construed
offer to buy,

record only and is under no circumstances to be

<

as an

in the
processing

that

to

risk

its

bridged because we are rap¬
idly learning that there should be

was

1,700,000 Shares

to
give people the
wanted—and needed to
know—about Crop Corps enlist¬
so

the

runs

regard

.

be

offering of these securities for sale, or as an offer to buy, or as a solicitation of an
any of such securities. The offering is made only by the Prospectus.

companies

would have

a

doomed to ultimate failure and it

This announcement appears as a matter of

facts they
ments

If

order

public relations pro¬
gram, that program is at best fore¬

ice

success.

good public relations is all a

public and business to run adver¬
tising
encouraging
people
to
spend. In the public interest, be¬
cause
it will help provide more

During the

in

highly competitive, trade¬
mark-conscious
field
running
public relations advertising over
the corporate signature because
such advertising brings results at
the cash register.
ft
After four years
of straight
"profit"
becomes
$8.5
billion wartime public service advertis¬
after taxes, of which only $4.3 ing, while it had no products to
billion was paid to stockholders, sell, Westclox with its Big Ben

tising

interest

undertakes

requisite.

is not

and

establishment of

ter

kets.

primary

business of

considered
Commission on

the Freedom of the Press for

well be in the interest of both the

jobs; in the interest of business,
because it will help create mar¬

the

whose house

by putting Government into the

the so-called

by

Let me make it clear
a

one

budget to strictly public service
themes. Not that it pays in some
intangible known as good will or
consumer acceptance but that it
pays off in actual sales—in dollars

There's the plan being

petition for leadership of public
opinion.
Our abdication would
but encourage others to redouble

ing for

main

finds—not just

public

..

.

time to demonstrate our
the

tion

of our membership by McKinsey & Co., management con¬
lic relations as—first, the ethical sultants.
The
report will offer
conduct
of
one's
business; and practical suggestions about how
second, the intelligent presenta-' managements can bridge the gap
tion of that conduct to co-work¬ between .public relations and ad¬
ers,
customers and" competitors. vertising.
:
Ethical conduct, will always re¬
That is a gap which will have to

in

no

Yes, there is no dearth of com¬

because it shows people

with that genius of his for put¬
ting first things first, defines pub¬

with

profitable kind of advertis¬
the insurance companies
the sound
of taking out insurance or

most

not

that

has been the

But this also

tion.

I

have

large

During the war and at present
the Life Insurance Companies of

processors

Kaiser-Frazer

now

appears

will soon authorize
plan
for
lowThis may well
processors
a
further

that Congress
a

Common Stock

food-stamp

income

Dame—that:

objectives—first,
want

two

of telling people what we

know—are

"If every

{^

We can't stop with telling peo¬
ple only the things we want them
to know, either—we've got to use
some of our time and space tell¬

companies is doing an outstand¬

by this company—and

struggles

competitive

/

be¬

busily obsessed with our

so

come

prevent inflation, the seven ways
that were listed in every ad on

"they"

paraphrase a statement from a re¬
cent booklet issued to employees

could help

national problems—if we

on

1471

families.

food

offer

Par Value $1 Per Share

explanations of what opportunity (1) to help the pub¬
corporations are; how they come lic by giving the facts about this
into existence; what they do in plan and (2) at the same time
to move their own merchandise^
providing employment and better
To assist business to continue
goods and services for all: how
they are a principal source of tax the same high order of statesman¬
revenues; how they promote the ship, the same concern for the
best interests of all of us through public welfare which it demon¬
strated during the war, we are
a free competitive system; where
their ownership lies; and finally, going right ahead with the War
I
don't
how they
are the
indisputable Advertising Council.
know—not with any certainty—
source of continued national well

make simple

"It is not

enough to say these

and to assume they
will be understood and accepted.
They must be said again and
again.
They must be said effec¬
tively in simple form so that ev¬
eryone, no matter what his or her
level of education or intelligence
or prejudice is, will understand."
things

:

,

national

what

being.

once

Importance of
-

Economic

Knowledge

No longer

need

six months
We

never

problems.
order

to

a

there

And
meet

will

a




as a

Speculation

Share

Copies of the Prospectus may be obtained from only such
of the undersigned as may legally offer these Securities in
compliance with the securities laws of the respective States.

now.
war

such

be

I know that in

the need for pub¬

lic enlightenment, we must main¬
tain

being Offered

Price $10 per

about

year

are

H

people

from
knew during the
or

But

Cither.

problems

be. informed

to

mechanism

to

these

spot

problems, coordinate information
them, suggest how the prob¬
lems can be presented
through
advertising and disseminate this
information to industry, advertis¬

Otis & Co*
(Incorporated)

:

-

First California

September 27g 1945.

Company

_.

Allen

on

fall back on
alibi that we can't ing agencies and media.

can we

the time-worn

will

These Securities

&

Company

-LV

V;;

THE COMMERCIAL & FINANCIAL CHRONICLE

5T472

Municipal News & Notes
With the sale

scheduled for to

(Thursday), of $5,379,000
refunding bonds, the City of Long
Beach, N. Y., will conclude the
final chapter of a program de¬

Ihorrow

this abdut*
to-be reached goal were initiated
in 1938 when the city concluded
a
general
refunding exchange
program.
One of the fundamen¬
tal purposes of this operation was
to allow for a systematic and
eventual elimination of floating
Indebtedness. Obligations of this
nature had been incurred with in¬
creasing regularity subsequent to
1929, with the result that a peak
level of $1,052,329.44 had been
The initial steps in

attained by 1936.

partial debt refunding.

a

The

000.

population

summer

former was the

The

BA.

to

B

credit rating from

bond

Beach

heretofore en¬
joyed by the Long Island com¬
highest

the

rating

munity.

experienced
by
the
municipal
trade for quite a spell. Paced by
the $8,000,000 San Diego, Calif.,
financing, the volume of new is¬

task of cor¬

to

ap¬

formed by
Co.
This
group acquired the bonds on a

properties,

bid

In

Four syndicates

made by an account

finally able
to liquidate the amount volume
of floating indebtedness in its
entirety, with' the last of such
debt having been extinguished
In 1943. This was accompanied
by a reduction in funded debt

■

■

pi about 7% from its peak.
had
inSure against a repetition of such
h problem. Accordingly, effective
With the 1941 budget, the munici¬
pality began to conduct its oper¬
ations pursuant to the cash basis
law, the effect of which is to pro¬
Earlier, however, the city
taken the necessary steps to

hibit

statute the creation of

by

of

interest

interest

forts, the city was

&

for

100.0527

of

tion

of these ef¬

consequence

Stuart

Ilalsey,

to

cost

combina¬

a

rates,
the

the

net

city being

1.9375%.

The

price

successful

of

100.18

bid

a

was

for

VA&, while
sponsored
by the National City Bank of
New York, specified a price of
the

offer,

runnerup

100.06

for

$1,384,000
$116,000 lMs.

The

l^s

and

the

financing will
be used by the city for new-cap¬
ital

projects, with $6,000,000 to be
employed in extending the mu¬
nicipal water system. The bonds
mature serially from 1946 to 1976
inclusive.
The three unsuccessful bidding

headed, respectively,
National Bank of
New York, Phelps, Fenn & Co.,
and Blyth & Co., and the various

little

else

to

to

be

have

buy

in

rates
taxes

bond

to

take

will

and

be

in

Ohio

municipals

keen

it

as

time

selective.

more

demand will continue

nection with proposed

nicipals
-

tricts

because

of the Puget Sound Power
Light Company properties.

with

Lending force to the apparent
imminence of the undertaking
the

is

that

disclosure

forming a syndicate
the projected is¬
sue.
In addition, company offi¬
cials are said to be agreeable to
recommending to Puget Sound
districts to purchase

the

on

utility

the basis of $18

for each share of common stock

recently
prices.
The

dealer, of

concerned

than is

market

investor

rant

of

consider

prices

while

he

price

the

when

may

he

The ban

on

conventions, group

month,

buys,
to sell

hour after he

hence,

state

of

the

awarded

be

tomorrow

Thus the
city is committed to the redemp¬
1946 to

tion
next

13

debt over the

were

from

received

investment

$2,500,000 of

the Chase National Bank of New

zy2%

of

on

the new re-

erage debt

next

the

against an average
past 14 years of $524,-

$478,493,
for the
(655.

service payments for
14 budget years is

as

;;■

contributing importantly
toward early retirement of mu¬
nicipal funded debt, is the unlike¬
lihood
that
the
city
will
be
obliged to undertake any material
new debt issues.
Underlying this
Also

bid

all

miles

a

nancial prospects are additionally
brightened by the growing trend
toward expansion of the taxable
list.
In this regard, it is offi¬
cially reported that over $1,500,000 of properties have been re¬

block

was

made

by

Associates, which paid

a

price of 100.339 for 2s. The bonds
mature

in

Offering,

1995

and become op¬
The balance of the

comprising

$2,450,000

non-electoral bonds of similar

ma¬

turity, Were taken by the City
Sinking Fund, the only bidder, as
2s, at 100.163.

The advices

Commission.

power

from the Office of Defense Trans¬

portation further said:
"Until
the

War

tions

permission of

17,

Aug.

Committee

on

or

non-local

participants.

fact

liberalization

Bank

that

the

account

Chase

National

outbid the

City

Sinking Fund for the $2,500,000
portion of, the offering, the lat¬
ter having made the second best
offer of 100.20 for 2s*

Another Pennsylvania unit that
to the day's activity
was
Allegheny
County,
which
awarded $1,500,000 bonds, matur¬
ing from 1946 to 196$ inclusive, to
syndicate headed by Harriman
Ripley & Co., Inc., on a bid of
100.641 for l3,4s. Next best offer
of 100.539 for 1% s came from a
a

group

formed

by Halsey,

Stuart

& Co.
The

Maryland

with

more

increased

than

50

A recent
the

at¬

tendance, limit to 150 persons and
permitted State-wide gatherings
of any size.

"Col.
thanks

contributed

Conven¬

required for the hold¬
ing of any meeting of non-local

Johnson
to

the

expressed
convention

his
and

trade

groups and to the nation's
hotels for their cooperation during

the

period the restrictions have

been in effect.

"He

said

..|j

that

the

scheduled

lifting of the ban by the War
Mobilization Director is not an
invitation to travel, 'nor can it be
considered
an
assurance
that

transportation

available.'
asked

capacity

The

i sponsors

ODT
of

will

be

director

meetings and trade shows to

defer

meetings whenever possible

and

to

small

keep

necessary

until after the

meetings

peak of the

at

price concession. No one, of
course, knows how valuable tax
exemption will be next year, or

hence, to an individual
or to a corporation.
The consen¬
sus of opinion appeared to be two
weeks

that early tax reduc¬

ago

buyers.
More' recent
for more worthwhile

tax

reductions may very possibly
be made for political effect.
It

if

would

indeed

serious

so

matter

as

become

a

and

tax

be
so

reduction

certainly require heavy taxa¬
tion, even if expenditures are cut
to a sound and reasonable level,
and

one

has

reason

to

wonder

expenditures will be cut to such

if
a

level, which doubt increases the
probability of continued heavy
-

taxation if the income is to meet

expenditures even before consid¬
ering enough income from taxes
to reduce the Federal

In
as

the

well

taxes

as

debt.

discussion of tax

relief,

raised < to

became

fewer

into

provide

a

the

of

at i

and

support.

number

who

bonds

is

sufficient

to

case

at

a

(1)
suitable

upon

fill

port¬

seem

folios, which does not
in the

in

back

come

level, will depend
whether the supply of

likely

of unusual names, and

(2) whether buyers generally will
to
be
willing to pay
about as much as in the past for

J

tax'exemption, which

'

continue

answer.

It

..'.

buyers

many

one can

/

.

obvious,

seems

that

no

are

at

<•

the

moment willing to pay about as

much

previously for tax

as

emption

really

in

like

and,

of

funds

supply

which

bonds

ex¬

they

certainly, the
available

■

for

investment is plentiful.

Exchange Firms Group
to Hold Fall Meeting
The
of

fall

meeting of the Board

Governors

T)f Stock
held

on

of

the

Association

Exchange Firms will be
Oct. 8 and 9 at the West¬

chester

Country Club, Rye, N. Y.,
it is announced by W. Wymond
Cabell, President.
A feature of the meeting will
'

a

dinner

on

Oct.

8

at

which

members of the Board of Gover¬
nors

of the New York

Stock

Ex¬

change and members of the staff

heights, one can scarcely avoid
the double-barrel blow at those of

will be guests of the Association.
John
Coleman, Chairman, and

our

were

citizens

fortunate

early next year."

incomes.

v

who are seemingly
enough to earn sizable
Progressive tax rates

■

,

\;

however,

present

,

.

market, and

broader

lower

be

in past discussion when

names

Again, however, the number who
might drop out now, and the

Cer¬

will

back

thus

should

tainly tax relief is important, but
a proper
servicing of the Federal
debt is likewise important.
In
fact, the balancing of the Federal
budget is probably more impor¬
tant
than
any
other
post-war
problem. - To balance the budget

levels

come

regrettable
important a

political football.

.

buyers who dropped out of
the market as prices went
up, will

tions would be only quite moder¬
ate. at least for the general run of

municipal
proposals

usual

of the

five years

troop movement, which will come
—

perhaps

some

conventions,

group

albeit

for

Naturally, if only a few
of these remaining
buyers decline
to buy, for any reason, the
price
level may be expected to decline;
However, as it does decline, some

demand, they will prob¬
ably continue to fill it with the
names,

>

.

demand

fewer.

fill their

usual

M

At 'usual prices* and; that as
.such conditions prevail*

as.

.

these

Yet, it does not seem that the
supply of unusual Ohio munici¬
pals will be sufficiently large in

was

character

.

State
Roads
Commission offering of $1,500,000.
Chesapeake Bay Ferry System
stored to the tax rolls thus far improvement
bonds,
due from
In fiscal year 1945, and the esti¬ 1947 to 1960 inclusive, attracted
mate is that another $500,000 will considerable
interest, with the
have been added before the end award going to the Union Se¬
of the fiscal period. Tax collec-, curities Corp., New York, and
tions for fiscal year 1945 are ex¬ Associates.




re¬

rec¬

posed, effective Feb. 1, 1945. The
committee set up to consider con¬
vention
applications was
com¬
posed of Col. Johnson and repre¬
sentatives of the Army, Navy, War
Production Board and War Man¬

An interesting aspect of the
Philadelphia financing was the

already

With floating indebtedness now
relic of the past, the city's fi¬

tlria

tional in 1965.

of the

city's streets
paved; water and
sewer
systems
completely
in¬
stalled, and an incinerator in op¬
eration for the disposal of gar¬
bage and refuse.
In all, it is
noted,
the city has $8,000,000
worth of municipal improvements.
50

for

York and

favorable outlook is the fact that
are

on

Mobilization and Reconversion, at
whose instance they
were
im¬

complish this objective, inci¬
dentally, finds support in the
fact that, assuming an interest
rate

scheduled

by the City of Philadelphia, bids

electoral obligations. The winning

funding debt, the estimated av¬

The lifting of the

was

ommendation of the Office of War

Its ability to successfully ac¬

r

11.

Sept.

strictions

Of the $4,950,000 bonds offered

bankers for only the

years.

and

1.997%.

1959, inclusive.

its funded

of

1.96%, 1.9804%

are

scheduled to mature serially from

j

war-,

maturity, the number
buyers for even such, names

'

to

time, to

some

year

or

two months hence.

or

*

,

tinue to try to sell under condi¬
a

of

many

should be sufficient,to,take such
bonds at prices only slightly, if
any, lower than have prevailed. '
In closing, howeyer, one must
admit that' as the municipal mar¬
ket continued to go higher and
higher, to the point where the
"unusual" names, that have good
appeal in Ohio, afford only a
1.00% yield for a 10 or even 12

future

expect

an

tions prevailing a week

Lifted After Oct. I

cause

continued demand for such

the

may find, and some¬
does, that he has been too
optimistic and that he must con¬

Ban on Conventions

"

predict

a

long

ac¬

course

to

measure

to be filled for

the

for

cannot

are

usual

more

dealer who buys for his own
must

simply

However, on the basis of
conditions,. it seems that
enough buyers of un¬
names, who are not likely

there

is

because

count

in

present

high

is

course,

about

the

gaining

value to them than it has been in

valuable

prevailing

his merchandise

outstanding.

exemption

been

names

at

are

the utility

tax

*

the past.

(2)

or

con¬

municipal buyers to feel that tax
exemption will be of much less

to warrant continued purchases

to underwrite

shareholders the offer made by

that

names

longer sufficiently

no

Ilalsey,

select

-

man ap¬

whether tax reduction will be

becoming filled

(1)

even

feeling

Stuart & Co., and John Nuveen

Co.,

of

is

and when taxes

pay,

have

sufficient

buyers drop out of the market

&

taxes;

man

a

favor during the past few years.

not

or

at

pay

allowed the average voter. It is
small wonder that tax free mu¬

keen in

whether

upon

rich

parently is to be allowed

the future will probably depend

largely

when

the

decreased, the rich

same

acquisition
by Washington Public Utility Dis¬

words,

siderably less reduction than is

Whether
as

to

One

months ago, but is at the

con¬

is

other

%

;;

•:

quired to
are

two'

was

percentage basis, 4

basis would give the
greater tax reduction

considerably
higher rate than others are re¬

However, if the

Thus it would appear that de¬

as

a

increased,

made

from that at which he has bought
in the recent past.
for

flat
a

dollars than it gives the aver-

are

offering be of a bond for which
the buyer really has an appetite,
probably would be little
need for a yield much different

still about

lowered, the satoe
forth to "soak

*

there

mand

*

comes

a

man

In

keen

no

appetite, and nat¬
urally it takes a price concession

place

made

be

age voter.

ing of a bond for which he really
has

in the
near future, according to present
indications.
The offering is ex¬
pected to consist of"* $135,000,000
bonds

in

offer¬

an

municipal meetings and trade shows will be
fhny floating indebtedness. By vir¬
tue of strict adherence to the pay- bond market. 'As against the removed Oct.
1, Col. J. Monroe
hs-yOu-go principle in budget op¬ 1.9375% net cost provided by the Johnson, Chairman of the War the next
year to fill the demand
erations, the city has had a surplus successfulj Halsey, Stuart syndi¬ Committee on Conventions and
now existing for such names.
And
every year since 1941.
cate, the comparable figures con¬ Director of the Office of Defense as
long as buyers cannot get
in
the
three
competing
The $5,379,000 refunding bonds tained
Transportation,
announced
on enough of the unusual names to
tenders were
unsettled

on

rich

Since V Day
inclined to give

times

the winning bid, considering the
size of the issue and the rather

will

made

names.

of these refusals to

Q

was

the rich" again with the conten- %
tion that reductions should not be

ings of these

the buyer is more

income

considerably higher
than the average citizen.
when it is expected that

since such

one

sizable

a

j

raised to

peaks, the

pay

philosophy

buys it, he

not too far off from

to

were

time

war

Now,

always been easy for a bank¬
say he is "out of the mar¬
ket," waiting to see what de¬
velops," "has no funds," "has his
limit of them," or to give any of

by the Chase

were

with

made

to

groups were

offers

for

highest

man

has
er

of course, been a
"soaking the rich,"

always,

medium

and when tax rates

Ohio

the

to sell the bonds.

largest municipal revenue
utility
underwriting
is

scheduled

&

of

Proceeds

else

It is true that there has

the other stock refusals to offer¬

Big Day

end, attention was focused on the
{angled real estate situation, with
particular reference to delinquent
-

Telephone 3-9137

$135,000,000 Washington
Utility Districts
Tuesday of the present week
Financing in Prospect
was one of the most active days
A

recting the basic cause of the un¬
favorable fiscal status.
To this

to

Bell System Teletype: RH 83 St 84

;

Emphasizing the greatly im¬
proved status of the city's fi¬
nancial standing was the recent
action of Moody's Investment
Service in increasing the Long

submitted of¬
fers for the San Diego offering,
with
the
winning
bid being

turned

cials

RICHMOND, VIRGINIA

placed at 40,000.

financial bur¬
sues
awarded amounted
dens provided by the 1938 re¬
proximately $15,000,000.
funding, however, municipal offi¬
With'the relief in

!

CRAIGIE&CO.

is

little

of banks in Ohio, a considerable
sales resistance to such names. It

F. W.

in 1940, and at pres¬
ent is officially estimated at 12,-

is

during the past year, and during
the past month, but there has al¬
ways been, with the general run

1930 to 9,036

,

The need for interim credit had
Its origin following the 1929 busi¬
ness debacle, which brought in its
wake large-scale tax delinquen¬
cies.
This condition ultimately
reached a point where the city
in 1933 was obliged to negotiate

been

MUNICIPAL BONDS

increased from

there

bought.

CAROLINA

permanent population
a total of 5,817 in

The

(Continued from page 1460)
when

NORTH and SOUTH

standing on a

area.

Municipal Comment

VIRGINIA—WEST VIRGINIA

place its financial long since taken on the character¬
permanently sound istics of a suburban residential

to

signed

Ohio

Dealers in

pected to reach 98%, as compared
with 93V2% in the earlier period.
Although Long Beach, in its
earlier history, was primarily a
summer resort community, it has

Thursday, September 27, 1945

Erhil Schram,
Presided! of
Exchange, will make brief
dresses.

the
ad¬

.1
*

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

§

Belgians Air Their

trade.

Economic Problems
'•

fresh

and

meat

like

a

of I

amount

.

and Canada, which is a creditor
Lend-Lease account.

on

grams of fresh

canned

thereby

tion

pork

The

month

this

1,500-gram ra¬
of

consists

700

meat, 500 grams of
meat; 100 grams of fat

and

choice

a

200

between

"

of pressed head, 100 grams

grams

of sausage,

mopped up about 1,800
million francs.
Now, if some¬
thing like Lend-Lease takes its

pate de foie, or steri¬
lized meat, or 50 grams of pure

place, we can continue to mop up
public purchasing power by sup¬

meat sausage.

plying goods in that manner.

The

•

.

margarine ration

lowbut¬

was

*

ered from

750 to

increased

ter

500 grams,

from

200

250

to

115. grams

200 grams.

tion

of

to

In view of the addi¬

fat

pork to the meat ra¬
tion, there is little change in the
total ration of fats

The

bread

fats.

as

remained

ration

400 grams per day,

at

at one
kilogram per month and potatoes
at nine kilograms per month.
sugar

Belgium's Financial Problems

Lease

the

Belgian
stated

views

Ministry

to

of

Fi¬

writer

this

his

follows:

as

;

"Belgium's
biggest
financial
problem on liberation was to solve
the legacy of monetary inflation
left by the German occupation.
The then Finance Minister, Camille Gutt, did solve this problem
quite effectively by drastic meas¬

.

which at the time

ures

were

un¬

popular, but which the public is
now coming .to
appreciate when
it

looks

the

at

.France.

Gutt

circulation

situation

reduced

from

the

in
note

approximately

100 billion francs to about 30 bil¬

lions.
*

4
;,

Under

bank

his

reduced

from

billions,

60

making

compression of
105 billion

-

October
paper

which

currency

denomination

.

receive

Lend-Lease.

All

this

be

deposited
designated banks.
Those deposits and all bank deposits above
balances existing on May 10, 1940,

I were treated
blocked
were

*

as follows: 60% were
indefinitely and the rest
d e c a r e d
'temporarily

blocked.'

V

"In

the

beginning

the

public

reaction to those steps was excel¬

lent, but later there was grum¬
bling, which is now giving way
to praise, as it
is realized that
these

severe

the

Unfortunately, the

Governmbent
to carry

saved

measures

Belgian franc.

has

not

been

able

out its original intention

to

gradually unblock the 'tempo¬
rarily blocked" deposits, except in

certain

individual
for

reasons

this

The

cases.

have

been

that

supplies of goods have not been
coming on to the market and that
there has occurred

the

direction

the

.

a

been

here.
and

There

movement in

inflation

requirements

forces
>

of

of

Those

,

still

due

to

allied

the

forces

fairly

are

have

large.

in Belgium about 69,000

are

fact

making
francs available
foreign
armies for troop pay here and
the receipt
by Belgium of the
equivalent in dollars or sterling.
As much as 8 to 1/ months may
elapse before payment is received
and goods bought out of the pro¬
ceeds

imported.

"Total

•

large numbers

on

leave

of these foreign
their payment in

presence

requires
francs, which when spent for nec¬
essary supplies and entertainment
f- swell the volume of purchasing
power in the hands of the Bel7 gian public.
For this reason pri¬
marily the note issue outstanding
has increased from the low point
of 30 billion francs to the
present
63

billions.

Bank

rally have
increase
when

it

Belgian
over

to

deposits natu¬

expanded,

"

is

easy

is

to

too.
This
comprehend

remembered

Government
the

Allies

for

that

has

the

turned

trooo

pay

in Belgium some 14 billion francs
and has supplied reverse Lena-

-

Lease
*

and

to

total

a

reciprocal Mutual Aid
of

some

15

billions

Belgium is the only country, other than the United States

more.
.

out
to the

K

Lease

-

supplied by Belgium to date ap¬
proximates 178 million dollars
the

received

by

net

Lend-Lease

aid

Belgium comes io
only about 40 million dollars.
"With the seeming termination
of Lend-Lease on V-J Day, we
used about $15 millions of our
$750 millions gold stock to fi¬
nance
purchases -in the United
States.

The

gium

was
and had a

revelation

this

of

disturbing to the public
weakening effect

on

the

franc.

"We

before

in.

came

have

now

1,500

need, the only

American nation to receive repay¬
of

mission' in

a

Washington which is going into
all important economic and finan¬
cial questions, including the mat¬
ter of Lend-Lease, a 30-year Ex¬
port-Import
Bank
loan,
the
of surplus American
military supplies located in Bel¬
gium or elsewere and payment
of amounts already owing to Bel¬
gium.
After those discussions in
Washington are completed, the
Belgian franc will be on a firmer

the

for

for the

way

war

not

of

The

"Belgian

a

banks

Recent Decisions

chief

worry
of Belgian
today is the cost of doing
business, according to Mr. Albert
Janssen, President of the Belgian
Bankers Association, who was in-:
terviewed
here
by this writer

Our

deposits

tions

and

keep

our

cial

determined

are

banks

borrowers

term

liquid.
must ,go

institutions, such

chair-j

"Another

as

of

man

Belgian

mortgage

last; mentioned

agency
of bank

60%

having

an

in New York.
"Salaries
employees have gone up

since

and

1940

the

lower-

paid personnel will now get an¬
other 20 %.
Thereby, the banks'
profit margin is reduced," said
Mr. Janssen.
Mr.

continued:

Janssen

cut¬

the

off

business.

These

restrictions

also

cut

into

business.

Now, however, we
find that business is reviving and
our

with

it

the

demand

for

bank

:

credit.

"In Antwerp a marked revival
of the diamond trade already is

apparent, with between 6,000 and
7,000 persons at work in diamond
cutting. Of course, a great num¬
ber of such workers went to New
York

during the war. Before the
Antwerp
employed some
15,000 to 20,000 in that. work;
New York is able to compete with
Antwerp on large stones, but high
American wage rates give Ant*
werp
the advantage on small
stones. *' 05 *•
5:
war,

"The

business loans to veterans.
is

There

agitation for that in Bel¬
gium. For very small firms, em¬
ploying say five workers, we have
special small-loan institutions en¬
joying Government support, like
no

the

Caisse

Central

Credit

de

Diamond

Bank

which

I

In

.




'

the block¬

with

connection

ing of Belgian bank deposits as
part of the Belgian Government's
attack on the inflation problem,

during

August

certain

decided

measures

by
the
Representatives. The
new program calls for the taking
over
by the Government of the
60% of all bank deposits which
were
blocked, these to be taken

were

upon

Chamber of

a

as

loan

forced

Govern¬

the

to

In

ment.

exchange, the owners
of the deposits will receive se¬
curities which, in the beginning,
at

least, will not be negotiable
which, commencing next Jan¬
uary, will bear interest at pro¬
gressively increasing rates.
The
special securities will be usable
for payment of the extraordinary
taxes
which
are
to
be
levied
and

under the program.

The second part of the program
for a 5% capital levy, but

calls

Asked for his opinion on inter¬
economic and financial

"We

from

also

of all foreign-exchange
Also, the stock ex¬
change was closed down from
September, 1944, until this spring.

ting

•

Professional."

suffered

have

.

American

banking
problem of which we have no
counterpart here is the matter of

Diamantaire Anversoise,

Banque
the

is

Mr. Janssen

two

to

Longto spe¬

institutions.

banks, the
Societe Beige de Banque and the

such loans.

demand obliga¬

are

we

on

Blocked Deposits

are

banks refuse to make

bankers

this week.

advocate of inflation."

an

day; during the
we handled only one or two
day. 5^/0''
\

a

of

inflation

little

level, it would be help¬
Belgium.
Of course, I am

ful to

war

foreign loans is in the
goods and services.
If

States

United

the

a

the price

ready to
Americans are unwilling ever to resume commercial lending when¬
have an import balance of trade; ever opportunity presents. We do
they might just as well stop lend¬ not have here, as you do in the
States,
agitation
for
banks
to
ing and pushing exports abroad.
make capital loans to businesses,
Views of a Belgian Banker
whether small or large.
Belgian
form

have

would

handled

often

we

checks

if

think

"I

During

the war, of course, we had nothing
to do in that bank.
Whereas, be-

of t)he

countries

boat; all
sterling area.
same

of

stock

sent abroad

was

Germans

-

in very

war

our

the light.
Ex¬
cepting for the importation of
gold which the United States does
seen

;

Lend

reverse

whereas

the

since

with

certain

exemptions.
Then;
a- tax
increasing

national

there

is

to

be

matters

from

70

to

95%

point,

profits; as well as a 100%
tax on all profits made out of
business
with
the
occupying
forces of the Nazis.
Finally, there
is to be an amnesty on fines, .etc.,
incurred by persons who failed
in 1938 or thereafter, to d^te, to
pay
taxes; so long as the indi¬

from the Belgian view¬
Mr. Janssen, who was in
Belgian
Finance
Minister, served on the financial
committee of the League of Na¬
tions, and on the Dawes Bank
Committee, said: "The opening up
of
trade
here
depends on the

the

twenties

United

Of

and Great Britain.

States

we are

course,

to

most

anxious

get rid of controls over busi¬
and finance.
We are tired

ness

of

doing

work for the Gov¬

paper

ernment, utterly'tired.
"We are much interested

intend

know whether the British
•:W-

to

•'

.

'

where

i

the

keep
it

'Vf

• /v.'-,

i-'y■

pound-dollar

now

is.

The

vidual concerned

rate

Belgian

pays

many

countries would be in the

for¬

and

5/;_

"temporarily blocked"
but which as yet have with npnor
were

exceptions not been released, jit is
probable that those funds
released

soon

If mentioned
the
pound
should
decline,
it
but
this
would be very difficult for Bel*

In fact;

comes

40% of bank deposits

As -to the

franc is linked to the pound.

gium not to follow suit.

now

his liability,
the back taxes due. -

ward,, declares

which

to,

wartime

all

on

excess

measures

is

availability
of

after

wjpj

the

be

above-

become lawi;

predicated

on

the

quantities

of greater

goods for sale to the public/"

/

acquisition

This is under

no

construed as an offering of this Preferred Stock for sale, or as an
solicitation of an offer to buy, any of such Stock.
offer is made only by means of the Prospectus.

circumstances to he

offer to buy,

or as a

The

NEW ISSUE

basis.

161,522 Shares

"Concerning the Bretton Woods
it must be realized that
it is only one element in the pic¬
ture.
The point is that we want
to finance our purchases abroad
by whatever means are available.
program,

We

$3.75 Cumulative

not alone in this.

are

countries

lars,

ARMSTRONG CORK COMPANY

Many
payment in dol¬
them such countries

want

among

(without

par

Preferred Stock
value)

Argentina, Brazil, and to some
extent Canada.
Whether we get
dollars
through Bretton Woods,
Lend-Lease, soldiers' pay, or a
loan, it is all the same in the
as

end.

Bretton

Woods

other

things, one
dollar exchange.

is,

way

>.

f

U *

.ft-

among

Share

Price $102.75 Per

of getting

:•

fJ&.l

!k

possible

"The

,

time

considerable

that

between

Bretton

in

forces

->

..

thing that has com¬
financial situation is

our

elapses

here

and in transit.

-

.

"One minor

American
and
65,500
British
troops, apart from those who come
:

for

ment of the National Bank of Bel¬

in
;

'substitute'

a

expenditure of gold in the state¬

required that all
above 50 francs

must

no

why Belgium, also, should

reason

not

out

25

to

decree of' last

a

eco¬

total
comof payment

a ;

francs*

done under

were

billions

•

means

of

was

also,

program,

deposits of all types

international

their

in

nomic life and if they work
a formula there seems to be

the

Commenting on the Belgian fi¬
nancial situation, a high official
nance

ffom

to its termination.
The
British
are
aparently
seeking
something to fill the gap of Lend-

plicated

of

view 1 of
conflicting
Washington re-

in

statements

to' lating

vegetable oil from 92
and lard from 100

grams,

The

exact status of Lend-Lease is not

clear,

shape,

diamonds

American

the

think

people have

ment

"So

long as Belgium was re¬
ceiving Lend-Lease supplies, it
gold them on the market here and

canned meat.

I

out of the

came

good

not

(Continued from first page)

-

mouth consisted of 450 grams of

head

tirely on whether the American
public is willing for the country
to
have
an
import balance of

147?

"Belgium

is fully in favor of

Woods

and

is

it

i.;

quite

:

that we shall soon take
steps to ratify it. We would like
Britain
to
ratify first.
We are
hoping that the British will rat¬
ify, and it is hard to see how in
the end they can stay out of it.
But in any case we plan to go
ahead and ratify, v■--

'I

As described in

v"What Belgium would like from
the Export-Import Bank would
be

30-year loan of $300,000,000.
This it would be quite within Bel¬
gium's
capacity
to
repay,
for

the Prospectus,

set

„

~s

offered for subscription to the

forth above.

f.

V' i

Offv

of the above-mentioned stock

108,528 shares

holders of the Company s Common Stock
and 52,994 shares were offered in exchange to the holders of the Company s
Four Per Cent. Cumulative Convertible Preferred Stock.
8,826 shares were
subscribed for pursuant to the subscription offer, 45,076 shares were taken in
exchange pursuant to the exchange offer, and 107,620 shares-are being purchased
by the several Underwriters and are being offered at the public offering price
were

V

'< *

-_-;v

v

'.

-'h.

;

,

a

normally
with

a

visible

Belgium/ is a country
favorable balance of trade,
and

invisible.

far

So

Copies of the Prospectus may be
as

may

obtained from such of the several underwriters, including

legally offer this Preferred Stock in compliance

the undersigned,

with the securities laws of the respective States. «

as

Belgium, such a loan by
the Export-Import Bank would be
eminently sound.
There can be
no question of that.
"Whether •• in
the
aggregate
concerns

America

recovers

on

the

loans it

is about to make in various
tries

of

the

world

coun¬

depends

en¬

Smith, Barney & Co.'

Kidder, Peabody & Co. Mellon Securities Corporation
r

September 27,1945

-

THE COMMERCIAL &

1474

.

increas¬

—and, until the war, an

(Continued from page 1453)
Rubber Co.'s manager of

&

market research, said in a study

the Bankers Trust
"After the war

by

published

Co. of New York:

shall

we

ductivity
per
worker rise to
heights which would have seemed
fantastic

T.

few

a

ago."

years

Dr.

Schultz of the University

W.

stated: "We are going
to have a much larger volume of
farm products than we had before
the war.
Taking agricultural out¬
put as a whole, it means onefourth
more
than
we
had
in
of Chicago

1939."

mist"

.

the

,

centenary

its

in

spoke

issue of

"London Econo¬

the

And

ing poverty and insecurity, which
this
generation is the first to
If these men, and many

others

speaking in the same
vein, are right—and I believe that
they are—this other fact is the
who

are

promise of plenty. Never before
in history has that promise ex¬
To this

outside of dreams.

isted

generation, the first in all time,
that promise, I believe, is real.
These
of

facts—the existence

two

the

of

existence

debt and

public

gigantic

our

the

in¬

almost

credible

promise—play upon each
other
with
a
primeval signify
.cance.
If we can realize the
promise, the debt is no problem.
Jf we can appropriately manage
the debt we shall have an excel¬

under

was

requires

freedom of the individual and

of

business, and it requires willing¬

work for value produced.

to

ness

These

requisites for utiliza¬
and, as

two

division of labor,

tion of

well, the necessity for equipment
of the worker and for urbaniza¬
tion, I assume, require no discus¬

sion, being, surely, so obvious as
to be visible to the naked eye of
the most

even

myopic of all God's

creatures.

But there is

which

may

division

This

final requirement

a

be

not
of

evident.

so

entails

labor

the

Only

economy.

a

un¬

jack-of-all-trades
can
what he requires
and to do the slight exchange he.
needs
by
barter.
The skilled
urbanized workman, utilizing the
skilled

seek to produce

tools

provided

invest¬

large

by

ment, must exchange his labor for

and

money

for

goods

the money, in. turn,
and services he re¬

quires.
Indeed, that exchange
through money is an essential
part of his freedom.
As F. A.
Hayek says in his popular "Road
to Serfdom": ".
money is one
.

.

the

of

It

is

instruments

greatest

freedom

invented

ever

opens

by

of

man.

existing
astounding

which,

money

society,

in

an

of choice to the poor man—
greater than that which not
many generations ago was open
to the wealthy."
The miracle of war production

lent chance to realize the promise.

range

Here

range

is

the

with

challenge,

a

highest stakes in all history.

88|S8l 31irThe American

has in
its progress reached this benefi¬
cent promise of plenty by the
partial dnd, thus far, very inade¬
quate exploitation of the tech¬
nique of the division of labor. In
economy

the

division

becomes

of

labor

everyone

specialist and, as a re¬
productive than the
jack -of- all - trades. Essentially,
this ^specialization is attained by
sult, is

a

more

the

and

unprecedented promise
of the future, while properly at¬
tributable to the division of labor,

therefore, just as attributable
operation of the money
economy.
The money economy is

are,

the

to

just as requisite as the division of
labor—they are but the reverse
sides of the

coin.

same

<

This money economy has func¬
tioned in the development of the

vast investment in tools and facil¬

country through a series of finan¬

ities,

cial

vast

for the specialist requires
equipment. It is by the use

of vast

t

equipment that he is more

productive.
A striking microcosm was given
by Frank D. Newbury, VicePresident

tric, in

of

Westinghouse

Elec¬

recent speech before the

a

i^nerican

Management Associa¬

tion,

institutions

is

niques have been, and are being,
profoundly affected by the rise in
the public debt.
That rise in the
public debt, as a part of war fi¬

of

57.8 cents

hour in

tech¬

These

matic machines by relatively un¬
skilled women. In 1924 the aver¬

creased to

to

the money economy.
institutions
and

are

has

nance,

hourly rate for this class of
labor was 37 cents; it had in¬

much

too

not

in regard to the household
incandescent lamp. He said: "The
work is done largely on auto¬

age

and

techniques.
say
that
these institutions and techniques

It

them

had

which

strikingly:

the

ernment

upon

statistics

rising

which

assets

impact

an

the

show

proportion

consist

securities,

operations of business and
To
perform these
functions
in a
developing and

ficient

individuals.

upset the Government, se¬
curity market and the manage¬
ment of the public debt.
2. The Federal Reserve System,

economy,
the
banking system has
exceedingly flexible.

changing

rapidly

commercial

specialization

This

money

possess."

percentage

10%, is striking.

for end¬

means

the

when

manufacturing pro¬

see

raise the percentage

ably would

The contrast with Colonial times,

rigidified in public debt, and. the
Charybdis is that their efforts to

Gov¬

of

the

prepon¬

derant

degree to which

Govern¬

ment

securities

constitute

the

and

had

be

to

Deposits and assets have had to
rapidly from section t.a sec¬
tion of the country and within
sections.
The
proportions
of
assets
devoted to varying pur¬
move

have had to change freely.
clearance and
operation have had to be rapidly
developed and rapidly changed to
fit
the
country's requirements.
poses

New techniques for

Deposits have had to shift in form
between
time and demand and
savings, and there has had to be
extensive
interchangeability be¬
tween
total

deposits and currency. The
volume of credit provided

by the system has had to change.
Extensive losses have had to be

because

partly

taken,

of

loans

poorly made, but also to a very
considerable
degree because of

The essence of
bank
functioning,

commercial

been
flexibility.
weaknesses
which
have
has

therefore,
The

commercial

marked

various stages

banking

at

of our history have

from inability

essentially arisen
be sufficiently

to

bank

surplus—else

resulted.

failure

flexible..
flexi¬

In the future the need for

this group of institu¬
tions, so essential to the money
economy, will surely not be less
than in the past, and may more
in

bility

likely be greater.
It is at this
point that the expansion in the
public debt becomes so signifi¬
cant.
Ere long the commercial
banks are likely to have threequarters of their assets-in Gov¬
ernment securities, and most of
the balance in cash at the Federal
Reserve
banks—which
is
also
Government

realistically,
that

prospects

the

are

long time after
and its immediate after¬

for

the

And

securities.?

very

a

war

passed, the volume of
Government
securities
which
must be held by the banks will
math have

significantly diminish;
in¬
during the next two or
three years bank holdings must

not

deed,

expand very considerably—prob¬
ably
more
than most bankers
realize

or

for

prepared

are

mentally.
is,

therefore,

degree of flexibility

The direct labor cost per lamp in

rate

international finance

which is so

if the money economy

the

1940

a

1940,

or

to 158%

only 19% of the corre¬
cost 16 years earlier,

was

sponding

and hours per
duced

lamp had been

12%

to

were

prices

lamp

1924,

and

case

reduced.

re¬

wage

better
sold

The

60

for

sold
a

size

same

In this

re¬

hours

increased, and selling

were

watt

the

of

quired in 1924.
rates

of the 1924 rate.

in

cents

lamp

for

100-

of

15

the

cents

1940."

in
,

of

so

how

large,

great, and its knowledge
to go far farther is so
the miracle of war

that

production could be realized and
the

promise

of

plenty can come
within view.
This specialization
is the key to the future, just as it
has

been

lifted

the

our

fulcrum which has

society from the serf¬

dom of the past.

and

mechanism
are

of

involved

in the public debt.
I shall not
stop to recount the figures here;
most of you are doubtless fully

familiar with them, and they are

easily

available

in

the

"Federal

Reserve Bulletin" and the "Treas¬
ury

Bulletin."

But

while

statistics

the

show

the impact quantitatively, they do
not

With this specialization of ade¬
quately equipped labor, the pro¬
ductivity of the economy has be¬
come

structure

adequately the tre¬
mendous implications to the func¬
tioning, both present and future,
convey

of this vital money economy.
III.

"If

tained.

which

favorable
appears
may

we

the

are

is

constitute

is

85%

under

conditioris.

non-farm
of

all

ahead




it

families

ilies by the end of 1955."

jection still further

main¬

likely

economic

that

going when

trend

fam¬

A pro¬

prob¬

years ago

Central; mechanism

the

of

that

mechanism

promise of
plenty requires that the institu¬
tions and techniques of the money

In other words, the textbook defi¬

beyond
possibility of disentangling.

the
.

L

American
there was no

In the long stretches of

bank,

central
tions

which

in

history

monetary
opera¬
exceedingly
spotty
the function¬

were

•

and often impaired

the

of

ing

three

In

economy.

when

periods

a

those
central

bank has existed, the record is

bal¬

on

the need for a central bank

ance,

operation of the

facilitate the

to

yet

spotless;

means

no

by

beyond

seems

economy

money

function

adequately.

the

management
will

in

determine

function.
more

very

large

specifically

1. The
a

money

the.... public
measure

whether
they do so
This may be illustrated

by
'.'riV.;:

amples:
been

of

commercial

vital

five

in

have

banks

in

instrument

economy

two

first, they have provided

a

ex¬

the

banking will continue to be the
holding of whatever (large) part
of the public debt at whatever in¬
terest rate is necessary to comply
with official requirements.
Pre¬
sumably, the banks will continue
to

exercise

this

function

volun¬

tarily. The entire system, includ¬
ing
the
Federal
Reserve,
has
given hostages (or has had them
taken from it), and it will be a

ways:

long

time

major

turned."

before

these

are

re¬

The Scylla in this pic¬

goods and services has
them

make

ef¬

more

therefore,

and,

ficiently

more

cheaply, so the primary way to
provide more adequate life insur¬
ance is
to make it cheaper.
An
essential in the mechanism of life
insurance is

interest return

an

funds.

on

lower is

The

return,

reserve

the

the

Occidental

the

of

fornia, put it in
"The

terest

has

rate

provision of flexibility.

the

expansion of the pub¬
the necessary reli¬

With the

and

debt

lic

Treasury upon the
commercial
banks,
the
central
bank also has become the instru¬
ment
of final
reliance for the
the

by

ance

The commitments, re¬

Treasury.

garding marketability, converti¬
bility, price and yield, on the

debt which

public

and is making

made

has

in

fulfillment

their

for

the Treasury
depend
final

upon the Federal Reserve
System—the "Treasury is making

essence

commitments for someone else to

validate.
In the

past the obligation of the
was the provision of

central bank
the

necessary

flexibility

the

for

commercial banks as a means of
bounteous

the

of

operation

the

facilitating

In

economy.

money

the future 4a second obligation is
added
by the public debt, and
that

obligation

the

is

the

to

farm

The Federal Reserve System to

greater degree than the
commercial banks is now filled
with Government securities as a
even

of war finance and
expansion of the public debt.
Its
statutory
restrictions
have
re¬
cently had to be relaxed to per¬
mit it to carry the load.
But. this
consequence

to

meet

immediate requirements by

of

resources

tory alteration is only an episode
and is not a coping with the basic

problem.
That basic problem, to
repeat, is the reconciliation of the
two obligations which the central
bank must carry.
The develop¬
ment of a technique and under¬
standing of how this can be done
is urgent.
essential

third

institution

is life in¬
agricultural so¬

of the money economy

In

surance.

ciety

an

played

insurance

life

a

the
instrument of. social security and

minor role since the farm was

provided
and

a

means

retirement

for

of
old

livelihood
age

and

In an urban society,
which is so necessary an aspect
of division of labor, a substitute
dependency.

be JEpyiid for the farm.
This substitute was the sharing of
risks of death and the provision

had

for

to

old

through

age

and

dependency,

life insurance.

minimum for an urbanized

people.

governmental institution
not and -camwt do the entire

But this
does

last

decade

substitute

increasingly

the

for

expensive

American citizens.

The

to
in

trend

direction is accentuated by
growing proportion of assets
which must be held in Govern¬

this
the

issues

ment

the fixed pattern

on

of rates and maturities.

life

But

an¬

which is

one

challenged, by
what,
Hogben used

in
in

Lancelot

"Science

his

fulfills

insurance

role—though

words

another

Citizen"

the

for

connection,

".

is

in
»

.

a

theory with nothing to commend
but the elegance of flawless

it

reasoning
have
a

well

view

which

premises

from

foundation in fact."

no

by a contrib¬
January, 1945, issue

the

utor to

It is

stated

of

"Foreign Affairs," as follows:
"It seems generally agreed that
the chief difficulty in the United

States will be to
which

led

has

the trend

reverse

the

to

extraordi¬

narily high level of savings."- As
a
major substitute for the farm
for social security, life insurance
through the reserves accumulated
by the millions of small savers
has become a major pool of capi¬
tal in the country.
It surpasses
in size by a wide margin all. of
the

institutional

other

capital

pools —savings
banks,
building
and loan associations, trust com¬

It is the instrument

panies, etc.
by which to
the

greater degree than

a

the

other

any

millions

savings

small

converted

are

of

info

job, because
minimum—not yet
provided for- a%;of. the popula¬
tion—is
whblly
Inadequate
to
meet the varying

quirements

desires and re¬

of Sa^free. diversified

specialized, highly productive and
enterprising people. Furthermore,
as the standard of living rises, the
economic need for life insurance
increases.

which

by

production

mass

and

division of labor operate to their
munificent

capital

converted

been

securities,

as

pool

the

have

Government

into

that

so

con¬

a

finance,

war

this

of

assets

&ut

ends.

of

comitant-

war's

at

end

perhaps two-thirds or more of
this pool will consist of Govern¬
ment paper.

statu¬

3. A

the

over

the capital equipment of industry

Treasury.

an

Cali¬

of

recent paper:

is to make
cheaper and
to

that

made

being

requirements; it is
the institution of final resort for
bank

Life

a

provide contingency funds." Con¬
sequently, the decline in the in¬

central

the

of

required

It is the epitome of com¬

expen¬

of interest

job

insurance

life

other

greatly

more

sive is insurance, and vice versa.

argument.
The flexibility required of the
commercial banks is even more

-

to

to

As F. M. Hope, Actuary Emeritus

So vital
was the requirement for a substi¬
economy — inseparable
Siamese nition of a bank is now badly out tute for the farm tjrat, in addition
twin of the division of labor— of date."
Later, on Aug. 28, 1944,
to private life i'ris'urance, a public
which have brought us to the it said, of the American scene,
social insurance system had to be
periphery of the land of promise, that: "The primary function of provided in oixier..4o assure some

debt

says:

the banks were
trading institutions like others,
with
particular
responsibilities
for probity and caution, but with
no closer organic connection with
"Thirty

Today they have been caught up

the

of

National
it

suppose

now

in

Realization

specialization
entails
a
high degree of urbanization of
population. A recent study of the
shows where

public debt will neces¬
very few will
question the use of that word
"necessitate":
in any event, the
"Economist" seems aptly to have
described the condition.
Its cen¬
tenary
issue pointed out that:
I

sitate.

State than many other industries.

continue

Housing Administration

which the

the

Since the public debt has such a
tremendous
impact upon them,

This

adequately to function, and at
same
time carry that large
volume of Government securities
is

been

important to the economy in the
way and for the same rea¬
sons
as
the commercial banks.

same

expansion

great
problem in the development of a
technique whereby the commer¬
cial banks can maintain the high
There

more

interest

change within our country, and
these have had to be covered by
or

is

the basic method to pro¬

as

vide

functionally a part of the com¬
mercial banking system and is

bank.

reserves

bank,

central

nation's

the

as

mercial

necessary

money

cally

economic, technological and social

capital markets, and
the degree to which the interest

per

the economy with suf¬
flexibility will sporadi¬

provide

Just

banks will become

ture is that the

ing proportion of—the medium of
exchange, and second, they have
financed the short- and mediumterm

Accounts to Fate—the Public Debt
Tire

Thursday, September 27, 1945

FINANCIAL CHRONICLE

the

Before

these

war

institu¬

tions had the requirement of pro¬

viding life insurance as cheaply
possible and of transforming
savings to capital equipment of
industry.
As a consequence of
the rising public debt, a third ob¬
as

ligation has been added, which is
participation in the support of
the public debt.
Reconciliation
of this obligation with the most
a

desirable

functioning

beneficent

of

life

in¬

essenlial part of the

surance as an

is an

economy

money

urgent problem.
4. The

of

structure

rates has

played

in the operation of our

based

system
labor

and

economic

division of,
Differentials

upon

money.

securities

between

rate

in

interest

most vital role

a

of

somewhat similar term have con¬

stituted

a

market evaluation of
and the where¬

relative. risks

withal
carry

to

establish
of

securities

to.

comparable

measured

have

quality

reserves

Differentials be¬

the risk.

tween

the

dif¬

ferences in risk and in reward re¬

quired for differing time periods.
Alterations
of

time in the level

over

these rates and in their

inter¬

relationships have constituted the
method by which the complex of
economic forces in
tended

have
funds

to

greater

of

.areas

or

a

free economy;

attract additional

to

less

need

vigor.

with

Fluctua-"

tions in the rate have constituted
the

economy's

more

savings

from

abroad

signal to attract
to pull funds
or
to
discourage
or

savings and let funds go abroad.
Changes

in rates

and rate

rela-

v

Volume 162

Number 4424

COMMERCIAL & FINANCIAL CHRONICLE

THE

tionships

over

time have been the

has operated at least since the- in¬

and

method

by

which

dustrial

paper

institutions

with funds to invest

been guided

lend have

or

to the disposition

as

of

these funds most appropriate
to the economy*
Fluctuations in
rates have expanded or dimin¬
ished the earning power of the

revolution,
and -aside
from the past, they are the in¬
escapably necessary techniques if
the division of labor is to be fol¬
lowed.

The reconstitution of

an

inter¬

exchange in

were

of

forms

many

which

of

public securities
the less important.

among

As this economy shall emerge
from the war, none of these facts
will be true.
The public debt and

the money system will be in fact
identical.
The public debt will

make

national monetary system of ex¬
change has been recognized to be
an
essential of post-war world
organization which few question
to be a prerequisite for any en¬
during
hope. ' But
the
inter¬
national
monetary
organization

their needs felt by those who had

cannot be divorced from the do¬

funds to lend

system to

mestic

gree, will be

financial institutions in broad ac¬
cord with
success by which

their

functions

filled.
rate

were

being

ful¬

Fluctuations in rates

differentials

various

of

users

•While

in

have
funds

small

these

economy

to

invest.

or

a,

and

permitted

and

simple

economic

func¬

tions

monetary
organization
since, indeed, they are but pieces

of the

whole.

same

For there to

international

an

system, the
monetary systems of narticipating
countries impinge at least periph¬

plexity of the American

the

and of the world of which it is

a

part,, make the conscious per¬
formance of these functions al¬
most inconceivable; ' However ex¬

tensively staffed by whatever de¬
gree of expertness, it is hardly
cfonceivable that any institution
on Wall Street, or Locust
Street;
or in Washington can
completely
know and adequately
evaluate
.

the relative needs and desires of

every

and

money

capital-using
Unless

segment of this economy.
some central

body of experts can
know
and • adequately
evaluate
and
determine^' priorities,
the
money system must' have a mech¬
anism through fwhich this func¬
tion
can
be 1 performed.
That

erally.

A relation exists between

interest rates and yields, between

quantities of

qualities

of

these

and

Costs

the

and

money

through
in the

money, and
other factors,

of

production and prices,
and thus, the volume and terms
of

trade.

*;

v

I. Clearly,

then,
system

the
and

domestic

monetary
its tech¬
niques arC integrally related to
the international monetary sys¬
.

tem.

And, therefore, the policies
of public debt management and
interest rates have a most sig¬

\ With

the

and the vast ex-:

war

pansion of the ; public debt,
rigid if ication of interest rates

a
on

Government

securities has been
desirable. - This rigidifi-

deemed

cation has been
to

applied, not only

rate, but to the entire struc¬

a

ture of rates.
The open market
personnel of the Federal Reserve

ities."

world order.

therefore, there

Here again,

is^. problem of

reconciling the needs and desires
of

the

Treasury and of domestic

purposes

to the world order.

But

•

we

I

certainly do not

mean

tion of
ate

it

have functioned

to

perfection

in the past, or that they are likely
to do so in the future.
But these

functions must be? performed, and
unless we,

time

to that

come

debt

the

of

period with

large that

so

We

peace.
a

public

great social

a

interest attaches to the level and

of

structure

than

greater

interest

to

come

on

And

public interest,
with

peace

structure

before.

ever

because of that

rates—far

the

we

interest

Government securi¬

ties

substantially rigidified on a
from
% % to 2% %v • and
with
maturities
limited
to
25

curve

Because of the functioning

years.

of financial; institutions

as a

country, intend to

is

inconceivable if

to

maintain

the

wish

we

even

present standard

IV.
In short, the orientation of this

to peace presents the
problem of how to reconcile the
major new factor of the gigantic
economy

public debt with the functioning
in an econ¬
omy
whichoperates
by
the

of the money system

division

of

is

more

labor,

v The
problem
complex than the
examples* in>the preceding sec¬

even

tion

suggest because those
examples are all bilateral, i.e., re¬
may

lationship
function

between
or

public debt.

this rigid- tionships

are

the

indicated

institution

and

the

In fact, these rela¬
all multilateral, and

Government

every

substantially
rigidifies
of high quality,
and, subject to varying concepts

other.

Of risk, the rigidity is imparted to
lower quality securities.
In this

niques of the monewFSvstem than

situation

illustration

ification of rates

on

paper

rates

all paper

on

the

complex

but

vital

economic role of the interest rate

the money economy has been
almost non-existent.
I do

in

made
not

to suggest that interest

mean

rates

too

are

rect—even if

Of

high, or that they
that they are cor¬

too low, or

are

at'

these

would

be

time in

a

they
the

moment,

at

another

one

any

were

they

different

a

different environment.

The problem faced, therefore, is
either the reconstitution of the
role of interest; to perform the
peace-time function, or the crea¬
tion of a substitute technique to

perform

that

function
that

will

or

substitute

series

somehow

reconstitution

It

function.

or

must

of

is

a

functions
The

occur..

invention

provide

of

a

the

for

performance of the indicated eco¬
nomic functions and, as well, for
adequate
consideration
to
the
Treasury, and therefore the social
.

need.

■

:

5. The division of labor and the

have not been
phenomena of the domestic econ¬
omy alone." They have been the
money

process

economy

by which world economy




il

ever increasing de¬
shaped and will be
by the management
of the public debt.
The task, therefore, of recon¬

an

:

ciliation of the debt and the

functioning of the

essary

system is not
is

not

a

nec¬

money

small one, and it

matter

of

slight adjust¬
previous tech¬
niques.
It is, instead, one of the
most difficult, even the most dif¬
ficult, which the nation faces and
a

reattain

to

ment

is in many respects the most por¬
tentous for the country's future.
The institution of

day of prayer
for the, officials of the Treasury
and the Federal Reserve would
a

hot be,

inappropriate.
The public debt accounts,

V

therefore,

may,

Masefield's words
used in the title of this paper, be
in

"accounts

called

fate." v The

to

"The

from

Widow

•"The

time

.j

early or late,

^ >

for

payment

one

interplays

Not

only

every

upon

this

does

plexity exist, but there

are

com¬

in ad¬

dition other institutions and tech¬

those which

are

incy^ated in the

comes,

are

given

a

.

above

and

part of the complex

many

cases,

a

negligible

pro¬

change

might fluctuate due to
many
changes,
and
in
most
periods, the public debt was a
minor

one.

financial
form

Before

institutions

their

function

the

war

could
of

the
per¬

clearance

will do

But

it.

the

so

even

still greater prof¬
It visualizes a pic¬ original sell half position is
sound.
The
time
to
buy
ture of plenty it eventually
them back is not when they
comes to believe in and so is
are
going up, or everybody
convinced of its truth.
But
truth and stock markets sel¬ thinks they are going up. You
dom have anything in com¬ buy them when they are go¬
and
everybody
mon. First of all truth as we ing % down
know it is a market chimera. thinks they are going lower.
profits

sees

its ahead.

It is made up of a great many
little facets few of which
have any

apply

basis in fact.

it

as

So to

determining

a

factor to stock market value
is the

height of naivete.

A

stock

worth

is

dollars

ten

selling for

a hundred.
Anothe rstock worth a hundred

is

selling for ten.

the truth? The

both stocks

Which is

answer

is that

selling for ex¬
actly what they're worth, no
are

The latter is

few

a

even

broad market

don't

which

fractions

commissions.

pay

;;:V *

*

The list still remains

If this sounds screwy

more.

a

philosophy which doesn't al¬
ways work.
But close appli¬
cation usually leads to more
profits and involves you in
fewer mental whirlpools.
In
any case none of the stocks
you hold has done anything
outstanding since last week.
At best they managed to add

fol¬

as

try converting your hundred lows: A. M. Byers, bought at
19, stop, 16, half sold at or
dollar stock into cash.
about 21.

For the past few weeks this
column has been saying that

&

Rest hold

Jones

...

Laughlin,bought< at

35,

stop 33, half sold in the 41
area
(actual high was 40%;

public debt, account to Fate, and
accounting will determine in
very
large degree whether we

a
point either way is sell¬
ing zone).
Hold rest. . . •
in last week's article, that
though attainment of this Paramount, bought at 30%,
figure indicated a reaction, it stop 28%, half sold across 35.
Other half to be held.... U.S.
need not be a major one. But
Steel, bought at 56, stop 65,
as the writer had and has no

^e^^jthe promise of plenty,"

information

half sold

This

economy,

- >..

this

society,

is

the debtor, and the time for pay¬
ment is come.
We shall, with the
our

of

Amer.

Telephone Issue
Quickly Sold by Morgan
Stanley Syndicate
•

Morgan Stanley & Co., heading
of 100 investment banking
firms, purchased at competitive
bidding > Sept.
24
$160,000,000
American Telephone & Telegraph
Co. 30-year 2%% debentures due
Oct. 1, 1975 and completed sale
of the issue to the public in less
than one hour after the post ef¬
fective amendment of the regis¬
a

group

tration

statement

was

the Securities and Exchange
mission.
The

bankers

paid 99.8199 for
issue, an interest cost to the
company
of a little less than
2.76%. The issue was reoffered to
the

the public at 100

less

than

bid

was

received

the

for

group headed by
Securities
Corp.
and

tures,

a

Stuart

& Co.

or

any

he

reaction,

to the

as

extent

other future

offering 99.6811 for

if certain

and

as

reached.

These

areas
areas

were

posi¬

tions will be

*

before the ink in last

But

week's

column

was

from the mid 170's to
180.

Readers

their

who

across

sold

half

—Walter

Bernard

mitted

to

J.

Conlin

will

partnership

in

be

ad¬

Bond,

McEnany & Co., 60 Beaver Street,
New

New

York

York

October 1.

City, members of the
Stock
Exchange, on

WhytQ

expressed in this
article do not necessarily at any

[The

time

views

coincide

Chronicle.

with

They

those

are

those of the author

the

of

presented at

only.]

lots

and

across,

the

LAMBORN & CO.
99

WALL STREET

NEW YORK 5, N. Y.

market

the 180 obstacle

doesn't eliminate

Bond, McEnany to Admit

or en¬

the

on

it

'<

replaced,

that the 180

it

-

74. Remainder

White Motors,

presumption tirely^disposed bf, is too sooi$
figure would be to say. When the market in¬
seen or at least
approximated. dicates
something definite,
Fortunately things worked
you will be advised.
t
out all right and profits were
*
*%
*
"'!<• I
I
available.
*
*
More next Thursday. *
based

will

:

.

were

as

come.

.

at 29%, stop 28#
protected by the process half sold across 35. Hold the
of selling half holdings when,
other half.
When full

proved nothing.
position is sold
presupposes a reaction but

Company officials regarded the
price received from the bankers

.

be

may have started
wondering if they should get
back in again. Before going
deben¬
Mellon on, this column's reply is a
Halsey, flat "No!" In coming back to,

the bonds.

across

to be held.

advised profits bought

to yield a lit¬
One other

2.74%.

tle

that

dry the
Com¬ the market came back again
with a vigor that brought it

cleared by

so in 35-year debenture 2%s to a
great that the very nature of the
Morgan Stanley group late in
public debt is different: a dog
July, that issue also going to the
evolved to
elephantine propor¬ public rapidly. With the present
tions is no longer a. dog,
but
financing the parent telephone
something else.
Before this war
company has completed refunding
the public debt was a modest, and
operations
for
some
time
to

portion of the assets of the insti¬
tutions in the money system. Be¬
fore the war the medium of ex-'

Says—

(frSH a^ed uiojj panuijuoo)

but

•

Quantitative increase has been

in

Waller Whyte

the 180 figure would be a
tough obstacle. It also added,

No earthly debtor but accounts

1

"quite satisfactory." Proceeds
be used, along with other
iInterplay..
funds, to retire on Dec. 1 at 105
The
task of reconciliation
of and interest the company's $160,the public debt to the money sys¬ 000,000
outstanding
debenture
tem is not a simple one of absorb¬ 3V4s of 1966.
*
ing into the monetary system a
The rapid sale of the bonds was
new factor among other factors,
attributed to country-wide inter¬
nor-is the magnitude of the task
est in the issue on the part of in¬
indicated by the fact that the
stitutional buyers of all kinds, in¬
public debt will be some six cluding
insurance
companies,
times larger than it was prior to
banks,
savings
banks and
the
the war.
The public debt has not like.
,•
only increased quantitatively: the
The company sold $175,000,000
which

Speculation is now start¬
ing about this market reach¬
ing the 190-194 range estab¬
lished in 1937.
Perhaps it

Tomorrow's Markets

in

Street," is:

abandon division of labor—which

reconstitu-

financial system to oper¬

a

in

the

and

which must,

determined

to sug¬

gest that the money economy or
the institutions which constitute

have reached de¬

now

the

and

progress,
utilize
the
labor and the money

Ito Fate."

*

mobilization

of

the Bye

a

ise of plenty.

:

system

to

division

tute

of

were

is

it

quotation,

living, to say nothing of im¬
specifically ordered,
as
the annual reports show, to proving it—the great problem is
if possible, im¬
carry on operations "for the pur¬ to restore and,
pose
of .maintaining: about the prove their operation. Unless we
present general level of prices can do so, we can hardly hope to
and yields of Government secur¬ jrealize the pulchritudinous prom¬

System

economic

nificant bearing upon the success
failure of efforts to reconsti¬

tor

'

function has been the structure of
interest rates.
'y'

system,

money

„.

be

might conceivably be per¬
formed consciously, and without
the interposition of
changes in
rate,
directly
by
those
with
funds, the magnitude and com¬
economy,

the

be

money system will be the public
debt* And the functioning of the

1475}

When

half

a

the pos¬

sibility of further rally.
market which is

in

a

as

this

with

one

Exports—Imports—Futures

thin

rallies may come

suddenness, and

further

as

And

SUGAR

DIgby 4-2727

so may

spills.

Public Service of Ind.

$48,000,000 3Vs% Bd.

H. Hentz & Co.

Issue Over-Subscribed

Membert
New

York

Halsey, Stuart & Co. announced

New

that the $48,000,000 3ys% series F

New

first

Commodity

bonds of Public
Service Company of Indiana, Inc.,
mortgage

had been over-subscribed and the

1858

Established

York
York

Chicago
New
^

Orleans

Stock

Exchange

Curb

Exchange

Cotton

Exchange

Exchange,

v

Inc.

of Trade
Cotton Exchange

Board

And other Exchanget

subscription books closed. A syn¬
dicate headed by the above-men¬
tioned
the

investment

bonds

for

house

public

offered

investment

Sept. 21, at a price of 102.46.
subscription books were
closed in quick order and the
bonds have since been quoted at a

N. Y. Cotton Exchange Bldg.
NEW

YORK

4,

N. Y.

on

The

premium over the offering price.

CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

raising of rents and the raising of gan sharply to reverse itself. By
June the boom was in lull swing.
prices came from business men.
Manu¬
Almost invariably the attacks Prices increased rapidly.
of these business men have been facturers, wholesalers and retail¬

Continued Price Control to Retard
Inflation

■

prefaced by a statement that in¬
flation was a bad thing which,
like wife-beating, should be dis¬

(Continued from first page)
that I should lay some of
before you.
tnat, in doing so, I am

prope?

those worries
1

know

making a few
peoples mad.
The things I say
will be misinterpreted by some.
Because the picture, as I see it,
is not wholly pleasant, I will be

running the risk of

being

of

accused

addition

in

of

bureaucracy.

bungling
I

will

that

sure

am

you

perhaps

However,

result of
across-the-board
discussion about the condition of
our country as I see it, and par¬
ticularly the position of business
in the period which lies directly
ahead."
we'll all feel better as a
the frank, open,

Let4

interesting to note that
production and retail
iales during the period of effec¬
tive price control have reached
by far the highest levels in his¬
There are many economists
that price control made
effective contribution to this

tory.

who
m

production because it sta¬
bilized business costs.
I'll be con¬

point out simply that there
is no evidence that price control
has stood in the way of our in¬
tent to

dustrial effort.

be
man

by

farmer, business
Government official, has

or

the last few
has* supported price and

years

rent control

and
But when the chips
red

shortages,

oureaucrats.

Mr.

down

jire

American way

traditional

the

n

over

It has griped

firmly.

today most

their vigor¬

support to, this anti-inflation

ous

prices throughout America were
rising rapidly.
Each month the
prices of household equipment,
food, raw materials and finished

program.
Our
farmers,

products were pushing, upward, as
America grew closer to war.
Then, as 'now, most of our
people knew that inflation was
dangerous business.
But only a

the balance be¬
tween wages, prices and profits.
Labor believes that wages have
prices

limited few seemed t# think that

been held

Some said Congress could never
induced
to
pass
a
strong

tightly, while too

merrily upward.

pressure
wreck it.

induced to

were

America

too selfish

was

claimed.

labor
business

groups,

pressure

and

groups,

immediate

higher

and profits.

Others

pressure

s

in

any

on

way

of

compensation

•

.

control

America

effec¬

that
was

impos¬

because

it

simply could not be administered.
Our country was vast and complicated.
No governmental or¬

ganization could possibly be built
which
could
keep
the various
price elements in proper relation¬
ship.
The whole operation, they
said, would certainly fall under
its own weight.
But these defeatists, as in the
bf

case

the

other defeatists in
were wrong.
In fact,

many

past,

they

were

record

wrong,

very

clearly

In the last

the

as

proves.

war

from 1914 until

Armistice

Day, four years later,
prices rose nearly 100%.
Many prices rose 200, 300 and
even *500%
above pre-war levels
average

In

this

war,

vaded Poland in

Hitler

since

1939, five

have .risen only 30%
of the rise that
.

third

enced

That's
we

one-

experi¬

Even

fact

.j

fhat

impressive

three-fourths

is

of

the

in the first half of the

the
war

Only one-fourth of the
price^ise in World War Two has
occurred in the last two and

half years.
we

see

one-

•,

what

the

defeatists

impossible has uo to the
present time been accomplished.
In fact, to be very frank, price
and

stiff

rent control have

been

even

been

among

porters.

\

Once the
sidies




sup¬

lend

their

support

Over and

gram.

leaders

have

over

shown

statesmanship

pro¬

again, these
the

utmost

in

.

Labor, too, while sincerely feei¬
that the balance between

ng

prices and. wages has been unfair
:o them, has solidly backed
price
From

fought

side

hold

down

cost

of

and

:he

of

the

war

appliances,

leaders
to

of

of

"rents

business

forward

come

price

during
strong

their

express

records

:ew

us

support

control.
that

But

indicate

me that they personally
behind us to the limit.

were

of

fought
our

who

nesses

who

groups

at any

to

cost the pressures applied
by .other members of the

us

business community.

Conscientious, enlightened

rep¬

resentatives of business groups in

Washington

also

have

told

me

both through the mail and in per¬
sonal conversations that they felt
that

tooth

those

and

program.:

appeared

who

nail

The

last

to

wit¬

spring

either

the

were

elimination
of

the

or

price and rent
largely
business

The tens of thousands of
elegrams that poured into Wasti¬
■

ng torn.

irresponsibly,

urging'

*.

the

months'

few

a

time

one-

entire working forces

we were

right and that above

our

unemployed.

were

three

next

That

was

bling,
for

Because of

same

critics

group

—

removed

were

ferent

in

more

who

make the headlines.
As

result I

a

afraid millions

am

of average

to

come

whole
and

citizens have wrongly
look on business as a

as

rent

the arch enemy of price
control.
This fact is

clearly brought out time and time
again by letters which the little

people all over the country write
to us by the tens of thousands.
It
is brought out overwhelmingly in
the conversations with everyday
citizens who constantly visit our
local
offices
throughout
the
country.

prices

return

for

But

the

to

the

subject
let's

moment

look ahead.

What

Deflation Ahead?

ahead?

lies

one

Obviously,
possibly know. Some

can

experts predict devastating defla¬
tion over a period of the next 12

months, with 12 to 15 million

un¬

employed.
Others
feel
the
present inflationary pressures will
continue without let-up in all but
fields

few

for

months

to

middle

ground

many,

Others

come.

and

many

take

suggest

a

that

inflationary
and
deflationary
pressures in the next year or so
are likely to follow the same pat¬
that

encountered

we

after

prices

of

rational.

!

Anyone who attempts to choose
dogmatically between these vari¬
ous
prophecies is a brave man.
I believe,- however, that all of us
should

thoroughly
happen
vigilance.
-

what
our

could

understand
if we relax

Opposed to these favorable in¬
dications, however, there is the
hard fact that inflationary pres¬
sures today are infinitely greater

On

vember,
were

Armistice

Day in No¬

1918, what few controls

then

in

existence

quickly pushed aside.
feared

inflation

were

Those who

work

a

is

unem¬

week

of

hours

44

or

hours, the loss of
overtime has deprived many mil¬
lions more of our people of the
extra income which they enjoyed
during the war itself.
Farmers foresee the possibility
of falling prices on many items
which they sell.
These sagging
prices would, of course, enable us
to lift our ceilings.
But their re¬
longer

to

40

duced income would increase this

which they would face if

squeeze

the prices of things they buy
the store loomed upward..
Believe

in

gentlemen,
our
country today is uneasy, and I
believe with good reason.
Our

people

me

earnestly to

looking

are

their

than

which

those

I still have many business¬

firm.
men

tell

me

else

we

must

US.

that above everything,

not give in to the
that threaten to engulf

pressures
V

ple

that

read

such

caused

business

some

attacking our program
and rent control with re¬
newed vigor. One retail group has
urged the complete abandonment
of
our
cost
absorption pricing
groups are

of price

standard which has enabled

us so

far to keep inflation in check.
This standard has been develop¬

ed

over

a

has

been

period of three years.
approved by the
courts.
It has been endlessly de¬
bated and finally approved by
Congress. It has been established
in executive orders by the Presi¬
dent.

The Fed¬
eral Reserve Board has estimatec

The Cost Absorption Principle

that the total of all liquid assets

In effect, this cost absorption
principle requires manufacturers

havoc in 1919 and 1920.

this

country has reached

staggering amount of more
300 billion dollars.

farmers

the
than

Our workers,

and

our

far

veterans,

better

organ¬
ized than they were 25 years ago.
If living costs and the prices oi
are

houses and equipment

new

start

upward, their own de¬
mands
quite properly will in¬
crease at a rapid tempo.
Let me repeat that I lay no
claim to being a prophet as far

moving

as

our

cerned.

the

-

is

economic

future

But I

impressed with

am

that

fact

those

con¬

who

so

blithely pooh pooh the danger of
inflation rarely carry any public
responsibility. If they should hap¬
pen to be wrong, they would un¬
doubtedly fmd s^e way to ra¬
would be

error.

on us

But disaster

nevertheless.

balance

to

cost

increases

against

certain pre¬
cise limits.
Certainly in normal
times
manufacturing
cost
in¬
cost decreases within

not reflected automat¬

creases are

Any

ically into price increases.
practice in
would
,

theoretical

set

.

.

distributive

the

In

competitive industry
find himself in hot

a

soon

water.

that

follows

who

manufacturer

trades

margins

,

the

allowed

by the manufacturer were rarely
actual
percentage
margin
wh ich
the
retailer
receives.

the

Trade-ins, markdowns and other
elements

cost

extra

tracted to

were

sub¬

make his actual real¬

ized margin.
To

cost

the

follow

retailer's advice

abandon our principle > of

and to

absorption

now

in favor of

plus pricing would be to fly
face of experience.
But the recent attack of this re¬

charged
responsibility which rests
on our shoulders, I have a feeling
that they would be far less dog¬

cost

matic.

program

If these gentlemen were

with the

Certainly our friends, Mr. and
Average Citizen, are wor¬
ried rightly or wrongly over the
potentially inflationary dangers
Mrs.

One.

who

fear that they too will lose their
jobs. As we have dropped from

It

•

Greater

r

tionalize their

.

are

Present Inflationary Pressures

our

or

man

But in the newspapers our peo¬

high and othei
too low, the

too

are

perhaps

moreover,

Inflation

that

from

prices under OPA

in general is
Finally, our pro¬
ductive powers during the last
generation have increased more
than 100% and there is a larger
supply of raw materials.

in

shall

ways

many

some

pattern

special

seekers

before; the winter is over.

every

ployed or who will be unemploy¬
ed, there are many others who

VV-V."'

While

ceilings

a

So

tomorrow.

many
observers, including the
New York "Times," have pointed

the majority view¬
point among our business men on
this subject of inflation control.
advantage

For

degree has repeated itself
after each major war for the last
a recent Gallup report which in¬
5,000 years.. There are some who dicated that three out of four peo¬
Say that it has caused as much ple feel that prices should be
human misery as war itself.
firmly held in line for the present.
I do not prophesy, and I have
But what are we hearing today
never prophesied, that a sweeping
from business? I am "still getting
inflation would inevitably follow many letters from businessmen
as it has in the past if controls
which tell me that we must stand

of 1919.

pressure

million

stroy their savings and wreck
their chance for a prosperous fu¬
ture, Their fears are reflected in

lesser

the

not

present total of four million is
expected to grow to roughly nine

pattern in greater oi

1920s and

out the economic situation is dif¬

we

lost

these next few months could de-

for

prosperity of the
collapse of 1929.
This

section in Amer¬
some people
their jobs.
The

today

are

have

the

delayed

was

years.

laid

was

there

who

The ground¬
the -jittery

full

two

our

In most every

ica

government for continued
protection against the savage in¬
flationary forces which during

reconversion

work

World
fum^

after

returned

War One.

who represent

no

years

must hang on. \
believe it is these men—and

all

these

and
the
spring of 1944 before
congressional committees to plead

nen..

business

many

have urged me with deep feeling
to stand by my guns and to resist

leaders who have,
Most of you are familiar with
their vigorous outspoken
and backing have been what happened after World War

by

Within
sixth of

J. have, talked to the presidents

Post-War I Inflation

outnumbered

weaken

•or

men

telling

business

?iven

sin¬

letters

World War One....

housing.

he

received thousands of
from business

have
cere

side with

the cost of living, the

also

Factory payrolls fell 44%.
Cor¬
poration
profits
disappeared.

veterans

tern

usto

bankruptcy.

into

majority of business men.
Not
by any means!
During the last three years I

other, labor has

by

home

hacking

ar

end

one

the

busi¬

thousand

106

than
went

nesses

the sorry spectacle on
the domestic front to which our

the

refusing to go
after
short-range
advantages
which
they knew would only
jeopardize the whole anti-infla¬
tion campaign.
1
>
;

country to

More

Government's price and rent
control
program
represent the

I

to
anti-inflation

Government's

period.

war

the

later.

full

wipe out completely the business
accumulated during the

reserves

foreclosure.

,

been
clearly estab¬
anti-inflation weapon,
leadersL came forward to

their

higher.
In May,. 1920, came the inevit¬
able collapse.
Inventories were
clumped for whatever they would
bring.
The loss in inventories
alone In a single year amounted
to 11 billion dollars—enough to

leaders who have fought to crack

as an

control

esti-*

a

had

lished

de¬

men

Prices

inventories.

for

During the
450 thousand
farmers lost their farms through

of consumer sub¬

use

emasculation

coun¬

fought

strongest

our

of 1941 would have dared hope—
in the face of the greatest infla¬

tionary pressures that this
try—has* ever seen. - It is

They
,

morebeffective than the ontimists
>

of sub¬

use

the price of

battle, and they almost won.
since that time they have

But

have

said was

the

on

retail.

at

have
more

period.

So

vigorously

sidies to hold down

Several

price rise during World War Two
came

prices. Two years ago
coming winter they fought

this
us

control

food

over

business

wild

a

soared higher and

But it is the noisy critics and the

;

groups,

Government

resented

during the World War One

period.

been

after nearly
20 years of consistently depressed
times, very naturally looked on
the war period as a chance to
even things up.
For this reason,
particularly in the early stages of
the war, many of them sharply

control.

in¬

years

this month, consumer prices

ago

Our farm

food

maintained

inflation

sible

Farm

pressure

groups would gang up
effort to stand in their

tive

pass an

anti-inflation law, the
groups would be sure to

and greedy, they

<

have

rigidly,
they
say,
while
have been allowed to go

wages

enough law to enable the Admin¬
istration to hold prices in check.
Some said that even though

.

the situation

seen

Prices

be

Congress
adequate

to

leaders

scramble

into

forced

were

ers

nouncing their action.
Now let me make myself abun¬
dantly clear.
Very emphatically
I do not believe that the business

I

reverse.

held

many

allowed

been

have

Industry has
in

vent it.

men

about

plaining

anything could be done to pre;-v

business

our

have also done some group com¬

other

from

go up.

*

and

workers

industrial

our

business

other

courageously
came
forward
to
support the price control pro¬
gram
they
were
immediately
swamped with wires and letters

tape*

Mrs. Average

and

Citizen have offered

right to be proud of it.
Just four years ago

Groups

The public during

worker,

a

Support of

Price Control Had Full

strongly

rents

or

When Eric Johnston and two or
three

say

record

prices

upward.

It is also

nctustrial

All

reviewing
briefly the record of war-time
price control. It's a good record,
and every one of us, whether he
start

me

push

first World War.

Control

a

skyrocketing prices of the

astrous

Record of War-Time Price

;

times greater

five to seven

those which caused tne dis¬

than

...

of

many

emphatically, with

disagree
I say.

what

usual charges

the

to

scaremonger

a

i«44 and 1945 have been

uunng
3ome

But this statement of
support for the principle of price
control has invariably been ac¬
companied by a proposal which,
if accepted, would only serve to
couraged.

that inflationary pressures

mated

Thursday; September 27, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1476

which surround

us.

in

the

tail

For instance a group

dreds of letters pour

hun¬
into the Of¬

of landlords

•ecently •aim'-ned an attack on me *
because I stated that rent

in

congested

sential.

Each week hundreds upon

on
the anti-inflation
is only one of many.
;

group

ine

Can you

what

control

would

were

control

still es¬
gentlemen imag¬

areas

was

happen

if rent

thrown out the win¬

fice of Price Administration from

dow in Detroit

little

matter

people throughout America

in

today? Of for that
Pittsburgh, Cleveland,

ties during the months of Decem¬

that their rents will not be raised,

or right here in New
City, where there is hardly
vacancy to be found?
The in¬
tentions of many landlords are

ber, January and February..

anxious

assured

rather

In

sharply in

March,

quickly re¬
prices
dropped

were

when

some

1919,

commodi¬

however, as
workers returned to their" job's in
peace-time- .plants; this trend be¬

—farmers,
consumers,

workers, housewives,
small business men.

These people are

anxious to know

Los

Angeles,

York
a

that» clothing

made

clear

prices will not be allowed to go

many

tenants

that food prices will remain

being

asked

up,

stable.;

to

'

know

'

••••>•

-

">

by the leases which
in New York are

These leases say

«

right now.;
in effect, "I, the

to- sign

-:>

THE COMMERCIAL &

Number. 4424

tVolume 162

tenant, hereby agree that as soon
OPA rent controls are with¬

-as

increased
That's not a partic¬
ularly reassuring message to get
from your landlord just after you
to 10%."

by the inevitable collapse.
Do business men allow the pub¬

V

have lost your job.

lic

impression that
they are fighting price and rent
control because they have failed
to make good money during the
war
or
because
they sincerely
to

the

get

Fourth,

fol¬

lowed

drawn, my rent may be

up

boom

major .inflationary

a

of

substantial

a

business

FINANCIAL CHRONICLE

number

Problems in Profit Controls

while

agreeing
theoretically with overall price
control, feel that a 5, 10, or 15%
increase in the general price level
would
and

men,

not

might

constitute

be

even

a

147.7

(Continued from

As

inflation,

good thing.
have even

Some respected people
claimed that it would

have said

we

NASD and the SEG to

sonable

profits,

other

on

1451)

page

occasions, the efforts of the

provide "Safeguards against

unrea¬

unreasonable

commissions, and other
furnish a
fear that industry will be un¬
r\
The Construction Industry ;
charges" will cause plenty of grief, not only to the regulators
Today the construction industry profitable in the future? v Again healthy stimulus to our economy. but also
to the regulated.
•
;
V
;
"Gentle Inflation" Dangers
I
represents one of our greatest op- that cannot be the answer.
Manufacturing ; profits
after
;;
portunities for the future. With
At first blush this point of view
We predict that many a member firm of the NASD
good judgment and cooperation taxes were in 1944 more than may seem reasonable.
But in which voted to approve this By-Law Amendment will in the
double their pre-war level.
on the part of labor, management,
Be¬ reality it is
highly dangerous. It future wish that it had exercised better judgment.
^ * •
fore taxes, they went up nearly
and government, we can sustain a
ignores the fact that one man's
:
1
;}■ price is another man's cost.
^
If the NASD intends ultimately to shave salesmen's and
^ building boom in this country for 400%.
It
traders' spreads and commissions, the
Moreover, the action of the
at least ten years. We can build
tendency will be for
ignores the fact that once the gen¬
'

■

t

t

from

million to one and one-

one

1

annually.
industry under such -condi¬

half million new homes
This

good

jobs at

steady

offer

could

tions

to 41/2 million workers.
profit op¬

pay

It could offer excellent

portunities to tens of thousands
of architects, builders, contractors,
and suppliers.
//According to a recent survey by
Architectural Forum, mijlions of
Americans are looking

they
expect to pay
averages
$5,500.
But mark this warning.
If the price is even as little as
$1,000 higher, more than 40% of

that they will have to

them say

put off building or abandon it
completely. And yet many building associations, speculators, and
promoters are demanding that
we sharply modify or even elimi¬
nate
price ceilings, on lumber,
bricks, tile, shingles, mill work,

.

and all the other items which go

into home building.

.

Mr.

and

will also
that

Average Citizen

Mrs.

see

in their daily paper

business

some

are

men

de¬

manding that we abandon entirely
all price control on vacuum clean¬
ers, washing machines, radios and
automobiles; and that, if we must
continue price ceilings, we should
set them 20, 30, and even 50%

-

above

the

the

levels

before

had

we

war.

While

automobile manufac¬

one

publicly stated that the

turer has

whole

as a

look¬

are

forward
to
substantially
dividends and profits in
1946.
This is indicated particu¬
larly in the action of the so-called

eral

movement

the

situation

ing

times

blue chip investment

stocks which
have been moving steadily higher.
As a matter of fact, if. excess
are removed the in¬
undoubtedly right.

profit taxes
vestors

are

No, gentlemen, I believe that the
that

fact

so

business men

many

willing to give the impression
that they are opposed to price

are

and rent control is due to a com¬
bination

of

several

too

First,
fail

many

principles
I

things.'
business men
the
pricing

understand

to

which we operate.

upon

amazed to find some who are

am

that

of

prices begins,
rapidly get

would

out of hand.

higher

forward to

building a new home in the im¬
mediate future.
The price that

.

stock market would indicate that

the investors

I have stated many

while

creeping

infla¬

tion may seem harmless and

desirable,
which

I

it

There

know
be

can

of

no

even

in

way

administered.

is another

reason

why 1

say that those who advocate a
"gentle" inflation are talking pure
theory.
They fail completely to

take into account the attitudes oi

the

other

groups

which

to

go

make up our economy.
Labor is saying today with in¬
creased emphasis that labor pro¬

ductivity is bound to increase
rapidly during the next two years
and that many wage increases are
possible with no corresponding
increase in prices.

the abler

men who seek
adequate reward for their talents
gravitate toward non-member firms. The short-sighted
policy of the NASD Board of Governors will result in this
penalty being placed upon members.
As all industry has its small business problem, this is
true, too, in the securities field during the present period
of reconversion and reconstruction. The
duty to give small
business a leg-up is apparent. NASD and SEC rigidity in the
regimentation of dealers and their employees is a stumbling
block which has injured and continues to injure dealers and
has placed a stigma upon these enforcement agencies'.'
.
Fortunately, the present controversy over the recent
NASD By-Law Amendments has created a revival of cour¬
age among dealers and brokers and their employees. It seems
that the fight to disarm the NASD and the SEC has just
begun.
*
*
*

to

They point to

The NASD

is Washington bound.
It is removing its
Philadelphia to the National Capital.
This movement is worthy of appraisal.
It fits in well
with that organization's determination to extend power ovet
the industry, for in the national capital is the seat of legisla¬
tive activity.
It makes possible vis-a-vis negotiation. Add to
this, the use of funds to cover a substantial budget which
member firms are providing, part of which goes to the inter¬
ment of some of their freedoms, and you have a ready facil¬
ity for further extension of power.
■
/
How much longer will dealers and brokers and hiheir
prices.
I know them
wholly wrong conception.
well, and I can assure you that
<
;
On the contrary,
our
pricing they will not tolerate for one in¬ employees be taken in?
It is high time that they emulated the example set by
standards and procedures are con¬ stant
a
situation in which farm
stantly under review.
We have incomes were
their policemen and placed themselves in close proximity to
going down while
changed them promptly and we industrial profits were
going up. the national capital where their commercial destinies are
will
change
them
again when
Moreover, our farmers do not lay
being settled.
(
conditions indicate the need. This their
demands on the bargaining
Cannot they who pay to be clubbed also'pay to be pro¬
principle of flexibility to meet table.
They go straight* tb Con¬

still

of

basic; pricing the fact that the
price levels to¬
guarantees each day are
roughly equal to 1919,
industry
price
ceilings
high while
hourly wage rates have
enough to at least achieve their been doubled.
average peace-time profits.
With
Wages are definitely not my
our present shortage
of goods in job.
But I believe it should be
most fields that actually consti¬ clear to
anyone that the proposed
tutes a floor under profits.
10 to 15% "gentle" inflation in
Many business men, moreover, prices would
multiply the de¬
feel that we are completely rigid
mands of labor many times over.
and unrelenting.
Once we fix a
Nor would our farmers accept
policy, they believe that it will for one moment this increase in
never
be
changed.
That is a industrial
unaware

our

which

standard

offices from

•

v

is

there

so competitive that
need for any OPA

is

industry

no

price control whatsoever, another
manufacturer has re¬

automobile

quested a' 55% increase in the
price at which he sold his car
in
1942, even though his 1942
price was already substantially
higher than he charged six months
before that.

-

repeat

In

trying to say.
business

groups

all-out

this

control

are
on

worries

me

inflation

mi¬
But

men.

is

are

am

staging

small

represent a
business

their voices that

I

opinion the

my

who

attack

there can

what

of

nority
what

so

about

mistake

no

that

it

is

being heard,

majority of busi¬
ness men sit by in silence.
Gentlemen, if price control is
while the great

eliminated

.

too

soon,

as

it

was

the
speculative excesses of an infla¬
tionary boom followed by the
bankruptcies, the foreclosures and
the unemployment that we had in
1920-21, the experts may differ
after the last war, if we get

.

as

the

to

come

until the cows
But I am afraid the

cause

home.

citizen will have no such
„; uncertainty. Remembering clearly
the bitter attacks on price and
rent control by many business
average

groups, he is likely to lay the
blame for the disaster squarely on

.

*

the doorstep

That,

^

we

-

will all agree, would

Why then do the
majority of business men sit by
silently while a handful of men
carry on a campaign which is lit¬
erally packed with dynamite? %
Is it because the majority of
business men feel that they have
no
personal stake in controlling
inflation?
Certainly you and I
will
agree
that that is non-

.

^• K>'-' ■'-■ v."'.-; ■;.■1
Our business men have a bigger

sense.

i/-

stake in inflationary control
any

clearly

laid

Truman's executive order.

f

control

Believe

nitely.

prices indefi¬

over

gentlemen,

mew

that is nonsense.

than

single group. It is they who
capital investments.» It

have the

There is

group

who have had the difficult

we

as

and distasteful job of

administer¬
ing them through four difficult
war-time years.
We are sick to
death of our task, and the sooner
is

?t

completed

will be.

happier

the

we

have eliminated
two or three
hundred non-essential items.
De¬

control

control

will

on

follow

item

control
will

others

the

during

Price

essential

of

thousands

on

months.

be

coming
on

any

first

sus¬

pended and then removed as soon
supply and demand conditions
the price to sag below ceil¬
ings. This same holds true of any

as

cause

rental

sufficient

to

bargaining

vacancies

when

area

restore

the

are

normal

relationship' between

landlord and' tenant.
It is my feeling that

controls on
relatively important items

many

Let
a

getting

pretty fair

what

measure

against which

this proposal of

(assuming that

we

are

likely to be

Several groups of economists in

Washington
for

effort

have

several

been

working

months

determine

to

economic
are

the

conditions

in

an

kind

which

likely to face during the

of
we

com¬

savings.




tion of the

war

one

vary

While their figures
in dfetail, the extent of agree¬
between

ment

them

is

remark¬

and the return of the peace.

regimentation are being enforced. Why? Are the dealers
nation?r

■

-,

■

-

retail

mounts.

.

granting

could

it

controlled

be

and administered) pause

for sober

prices move upward, mil¬
lions of people may seem tempo¬

volume

was

roughly that of 1944—by far the
biggest year in history.
In 1946
retail volume will equal that of
1945.

Then

economists

expect

a

drop in the sale of some food
products and non-durables, and a
substantial
consumer

If the

increase

in

sales

of

profits tax is re¬
moved, they tell us that profits
after taxes will reach the high-*
est point in history.
Dividends
excess

will rise.

There will be

a super¬

But millions of

rarily to prosper.
others

will

Sooner

or

later

and

hurt

it is

aster

be

will

be

sooner

will

We

and

my

that it

guess

rather

have

bitter.

will meet dis¬

we

than later
boom

our

all

There is no question about

right.

We

that.

will have the specula¬

the zooming prices and the

tion,

durable goods.

of superficial pros¬
perity.
But when the inevitable
collapse
finally comes it can
appearance

shake

our

whole economic foun¬

dation.

•

I have talked to you

'

•.

V. \

frankly to¬

quickly
than some of you people think.
At the. same time, it is only fair

ficial atmosphere of free spend¬

ing and widespread prosperity.
But under the surface, they say,

night and as freely as I know how.

to state that the shortages of elec¬

the picture will be far less

ments which may not sit too

appliances, building ma¬
terials, radios, automobiles, and
other
consumer
durable
goods

These

with

nine million

will remain acute and dangerous

anticipate

removed

be

more

trical

>

.

for

many

months to come.

business men sin¬
cerely feel that their business is
Third,

many

different

They
all

from

anyone

are well aware of the
danger: of
inflation

anxious to

see

that

we

else's.
over¬

But somehow many of them

that

an

exception

can

and

prevent it.

feel

and should

experts

agree

middle of the winter

happy.
that by the

we

shall

unemployed.

see

They

drop of some 25 bil¬
lion dollars in gross national in¬

come.

a

Thev

expect

that unem¬

^ '

.

of the policemen is "on to Washington" then
those that are being policed had better adopt the same slogah
or else the policemen will ride and the policed will be their

dustrial

1945

boys of the

^ 1

,

If the cry

like this:

In

re¬

^

and brokers and those who serve them the bad

thought and reflection.
If against this background in¬

The Economic Outlook

being

are

In the securities field additional irksome controls/>and

; '

sneaking,
the
n?oture to them looks something
Generally

nation, controls

of the evidences of the termina¬

ing months.

I

so

have

made

some

some

of you.

blunt

state¬

well
I have done

because I am deeply impressed

with the real dangers which
lieve

we

We

are

are

and

men

that

have

forebearance.

opportunity to do
who want to farm

men

opportunity to m.ake a
living and support their

decent

in" reasonable

They

equally determined that

are

when
able

wants to start

a man

he

business

shall have

a new

reason¬

opportunity to survive and
They know what we

and

amount

no

in wartime

of argument can

persuade them that we can't do it
in peacetime

too.
They simply are not going back
to
the unemployment,
the 'loW
-

the low farm income, the
capacity, the high rate 6f

wages,

idle

business failures

before the war.'

V All of

us

which

we

knew

;

little tired and

are a

edgy after four long years of war.
It's hard to keep our patience and

understanding

our

the prob¬
"/ *!' '

of

lems of others.

During the next few months we
be tested — labor, farmer,

business,
have

government

during peacetime.

then, will

people are seek¬

—

as

we

tested

before

If

been

never

flying colors.

should

we

will be

fail to meet this test, it

a

calamity for all mankind.
I

am

that

full
to

deeply, ardently confident
shall come through1 with

we

we

stature

as

For then, and only
have come to the
a

nation—entitled

the full respect of a disturbed

future of peace and pros¬
and worried world.
perity for us all. . They are de¬
a

a

prosper.

have been able to do

to do.

The American

comfort.

families

will be veterans.

am

ing

want to

who

an

speaking of all of us.
Our
workers, our farmers, our busi¬
nessmen,
and our
government.
The world is watching eagerly to
see what we do and what we fail
I

.

will

passing through diffi¬
all

tolerance

that

work have an
so,

I be¬

facing.

cult times—times that call for
our

i

-

,

.

termined

ployment will decrease gradually
through the year and will still re¬
main as high as six million by a
year from this coming Christmas,
According to their best estimate,
half of the unemployed in 1946

I maintain, gentlemen,-that this
who have the bulk of our be made in their case, by allow¬
It is they who would ing their own price to move up¬ situation should give those who
moderate inflation (even
; urge ;a
eventually lose the most .through ward. / %

is they

-

In other activities of the

laxed. 1 This is said to be
us

"mild" inflation

hard

tected?

they

it could be controlled) against the
kind
of
economic
background

able.

,;t

Already. we

price

of

record

a

operating in 1946.

in all Amer¬
ica who are quite so anxious to
eliminate price and rent controls
no

they have

want.

business
men
honestly feel that the Adminis¬
tration wants to continue Govern¬
ment

gress, and

niany

Second,

will

of all business.

-be.a calamity.

-

of production is
down in President

problems

.

Now let me

be

-

the

4

•,.»? v. -■

THE COMMERCIAL & FINANCIAL

&478

CHRONICLE

tirement

The Public Debt—

ments of which must come

5| A Long Range View
(Continued <rom page 1450)

of years, when most such details
have been circumscribed by the
well-established limits of a war¬

.

it is not surprising
major attention should
have
been
largely restricted to
them.; In other words, insofar as
Treasury securities and the public
debt are concerned, we perhaps
have become used to thinking in
terms of a fairly rigid basic pat¬
tern for such things and, conse¬
quently, we may have tended to
time economy,

that

our

(confine

our

of

view

the

future

problems and possible solutions to
too small a sphere of possibilities.
For example, too many discus¬
sions of these problems and solu¬
tions may have been erected from
a base
in which banking, credit
and related subjects are held in
the status quo of our pre-war
economy. It is my conviction that
from here

on we

will have to look

at these matters in an increasingly

different light and on a far broader
plane. The methods which have
been used for the management of

public debt operations will have
be
changed.
The problems

duce

which will

be coincident in those

changes will create forces which
could result in profound changes

over-all social and eco¬
nomic machinery—changes which
could be surprisingly revolution¬
ary
if they * are not thoroughly
understood beforehand.
fn

our

gentlemen,
as
savings
bankers, can appreciate that the
elements of private banking, pri¬
vate credit, public credit, public
debt; and Government fiscal pol¬
icies comprise an interlocking and
You,

intricate

machinery
lyhich, for successful operation,
Requires a considerable degree of
technical training and practical
piece

of

experience. Men are not endowed
by their intuitive senses to, make
correct decisions in these"fijelds,
'nor are the best decisions likely
if they are derived from training
which
is
predominantly gained

three

The

considerations are:

First, the debt itself, with re¬
spect to its general character, the
financial burdens it imposes, and

tem.

First, with respect to the debt
We

itself.

costs

the

that

know

(other than debt)
will require in the form of taxes
a larger portion of our annual in¬
come
than anything which fol¬
of Government

This seems

War I.

lowed World

likely to be true for some time.
But, on top of this, we will have
to add the service costs of our
public

These service costs
heavier than heretofore

debt.

will

be

also

and

sit

will

top of the
expendi¬
tures like the ghost of the gargan¬
tuan beast of War. There will be
whole

on

Government

of

long and continuing cries for
increased tax relief, and these debt
service costs will become the sub¬
many

ject of accelerating attack. Conse¬
quently, I have tried to measure
the relative burdens of debt im¬

posed upon us by World Wars t

There is
pressing need, today, for all
of bankers,
through both

kinds
their

individual

and

efforts, to assert

a

tive

their

joint

the

interest

in

sincere and

ac¬

larger prob¬
lems involved in the management
of the prospective 300 billion dol¬
lar debt of the United, States.

Importance of Debt Legislation
The

weight of this debt (finan¬
cially,
economically and polit¬
ically) will inspire many propos¬
als with respect to it which will
find their way into the commit¬
tees
and
sessions
of
Congress,
Many of these will be inadequate
and unsound. Yet, some measures
eventually will be adopted. - If
bankers fail to provide sound and
constructive (as well as expedi¬
ent)

proposals

ment

of

the

consequences

for

the

manage¬

public debt,
the
to banking and to

yourselves
sible

to

as

assiduously

as

pos¬

of
these; larger
and suggest that
you use every possible means to
some

-problems

now,

make available to your Represen¬
tatives and your Senators in Con¬

general knowledge and
ideas you may devise for a
sound approach to the manage¬
ment of the public debt.

gress your
.

any

This

morning I shall attempt to
three major considera¬
tions
which
conceivably could
give
a
dangerous direction to
Congressional legislation in the

illustrate

broader

ment.

were

interest¬

0

At the end of World War I and

during the decade which followed
it, the general situation with re¬
spect to debt was as follows:
(1)
The total Federal
debt
reached a peak slightly in excess
of 25

billion dollars.

fields

of

debt

manage¬

Such

legislation may, or
may not, give a clear picture of
its ultimate results at the time it

is considered.

It is quite possible
that legislation may be proposed
which might have as its origin




service

other

the

receipts

from

franchise

(3)

produced was approximately

come

billions.

71

be

terest rate at the end of the

4.18%

was

and there

was

war

no

up¬

ward

change in the cost of bor¬
rowings. On the contrary, a mi¬
nor

decrease

witnessed

was

dur¬

ing the ten-year period.
(4) The decrease in the service
costs

of

the debt (brought about
by the decrease in the
amounts outstanding) was a con¬
tribution of some degree to the
steady
reductions
in
taxation

partly

which

were

characteristic

period.
seems

lows:

(1)

of

the

:V.':t.;.''J.i

At the end of this
ation

war

likely to
v/

■;

v".

the situ¬

be

as

fol¬
v;'

.

The peak of debt, after

a

substantial reduction in the Gen¬
eral

Fund

balances,

seems

likely

to reach 300 billions.

.(2) The philosophy with regard
apparently has
undergone a change. With a 25

to debt retirement

billion dollar

debt

us

assume

that

the next ten years the aver¬

over

age

Let

national income produced will
billions. I jwould like to

150

to

always

your

a

it is

income

lower

more

realistic to

meas¬

the annual burden of debt in
terms of national income than in

ure

absolute figures.

we

were

bold

total of Treasury
interest payments that tends to
reach a 6 billion dollar figure i§
bound to be a subject of strong
political attack. Consequently,, I
would like to spend a little time
to show how difficult it is (under

tirement,

any

achievements, with respect to

the lowering of the relative inter?
est costs of the two Wars.
Not

only is the rate of 2Vz% substan?
tially below the comparable rate
of World War I;
taxable income

it represents fully
to the recipient
and, consequently, a lower net
borrowing cost than a simple rate
comparison would show. The real
means, however, by which the low
borrowing costs of this War were
achieved, was the substantial use

enough to attempt to pay it down
fairly rapidly and we met with

of short-term securities offered at

considerable

lor the circumstances.

success,

although

rates

which

were

unprecedented
The corol¬

individual

-

owner¬

holdersto

and

the

com¬

Federal

Reserve
Banks. Where such a change takes
place through marketable secur¬
ities,.:?^ substantial change will
result in. the interest payments
made by the Treasury. (This is, of
course, subject to the premise that
in

;

the

transfer

of

such

holdings

the market

market

will, remain favorable
Treasury.k There is.every

the

to

maintained under the
prospect that this will be the case,
compulsion, then it nec¬ and that
the Treasury will take
essarily follows that when the
steps to insure thai it is.)
supply placed in the market as a
|
Second, to the extent that rewhole, exceeds the buying which
comes
into that market (within [ demptions of E, F and G bonds are
t refunded with • longer-term max*?*
the rates determined upon) that
ketable securities (such as 2%'s >i
the remaining needs must be of¬
♦and 2V2S)
the reduction in the
fered with
a
higher degree of
total interest payments by the
1

'

compulsion attending them . As - a
Treasury would be insignificant
matter of market mechanics,, this
if any.
was
wisely accomplished in the
Third, if substantial holdings of
shortest section of the
market.
I
The banking system was asked to E, F and G bonds are refunded
recognize the needs of War and into the commercial banks with
short-teriri certificates, then sortie
to cooperate in this and all the
other objectives of Treasury War "decrease;in the total of Treasury
l interest payments might result, ft
finance. - ;
;
is hard to say/how much of a re¬
As a matter of fact, the 2:%.%
duction would take place undefr
long-term rate was an accident of those
circumstances because the
.

•

*

^

,

It

Harbor.

that Pearl Har¬

seems

bor found us as wholly unprepared

with

respect to; Wartime -finan¬
methods^ and fiscal policies
as we were unprepared in a mili¬
tary way. If there were ever to
be any chance (under such initial
circumstances) that at the end of
cing

short-term

form

that

so

too

not

Treasury accounts

This'

cash basis.

are

The difficulties with
are

is

now

confronted

that

not

such

in.

which

heavy

we

debt

our

use

was

made of short-term securities. Our

difficulties

basic

originate more

means,

the

and

F

bonds

are

and

rates

War
and

borrowing decisions i
borrowing pattern of
..

methods

two years to
Wartime tax
slow

took

..

almost

fully develop.
policies were

of formdlation.

Both

•

Fourth,

reduction

any

the

will have to be delayed (in

effect)
of Savings
Notes, and' E, F and G bonds have
been refunded into longer-term
obligations.r Consequently,
any
significant 'reduction in the cur¬
rently high 12 months liabilities
of the Treasury seems* unlikely
except over a fairly substantial

that is
are

was

so necessary

crease

in

ments.

:v

To

the

total

interest

pay-

kept from pyramiding
not always in evidence.: Pert

haps this was due in part to the
necessity of obtaining agreement

up,

prospect

there seems very
of reducing -the

total of interest payments with .a
debt structure of the type that
in existence last Aug.
if

shorter .and

the

Slst-^-

longef-

financing rates are held at
present levels. If any reducthe total .of. payments is *
tp be effective^ (except by sub-4
tantial debt reduction) it .could be ;:v
term

their

tion

in
..

accomplished, only by increasing
the short-term debt already out¬

standing, or by attaining an even
lower level of interest rates (par¬
ticularly in the up-to-one-year
classification).' r.
'7> v.-. \ iff

Treasury Financing
^

Here

are a

Costs

I'

few interesting side¬

lights on what actually has been
happening to the costs of Treas¬
ury financings.
On Aug. 31st, a
ago, the average computed
interest rate on the debt then out¬

among

the unusually large num¬

year

ber, of

persons
consulted—both
and without -the Govern¬

standing

within
ment.

On the whole, our

difficul¬

largely the result: of fi-nancial unpreparedness;
of "too
little and too ,late," and a lack of
ties

are

adequate
We

v

technicalproficiency.

are' entering

lems of Peacetime

into the prob¬
management of

.

'•,,'■.

sum

littile

if small errors

be

to

:

" / •

any

relationships

interesfcrate

and

:

reduction
in, the" present actual' short-term
debt,, via refundings into longer
securities, would require an in¬

even

fastest rate under

the

until after redemptions

was

time efforts, namely

in

short-term 'debt; othpr than Sav¬
ings Notes and Savings Bonds,

also

to tap adequately the segments of
individual income which grew at

ac¬

Thus, the say¬
ing rhight be more apparent thaii.
i eal
at this time.Furthermore,
any savings %that Resulted would
exist only so long as the floating
debt is held at its currently high V
figure. J

The

failed

into

taken

each year.

count

from the combined effect of other

fiscal

handled oh

for ex¬
ample, that only the increase ih
redemption values of the E
a

holders would be hurt by
any upward revision of interest
number of years.rates that might" seem to better
4. Fifth, obviously
fit our peacetime conditions.; ,
>
many

our War4
those $5,000
and less. The Treasury pushed a
customary handling of debt) to little hard, perhaps, in the direc?
reduce the total of those payments
tion of low borrowing costs when
except via heavy debt retirement. it established its Wartime rates.
The Treasury has been proud; The
high degree of technical
and in some respects justly so, of knowledge of market mechanics

its

,

that

transfer of debt from business and

be

to

;

The

is taken with respect to debt re¬

'

.

probable

ship will be witnessed. One prin¬
cipal change is likely to (be the

degree of

free

-

seems

substantial shifts of

some

maximum

the
a

attention here that
produced" is
figure than the
one
which has been popularized the War either the Government or
by Government economists, the market could read j ust Treas¬
namely, "gross national product." ury interest rates that were thus
A figure of 150 billions on the
accidentally imposed—the entire
basis given, barring a substantial situation had to be flexible.
The
inflationary increase in the price j only way that we could have a
level, is admittedly a reasonably flexible situation when hostilities
optimistic one. I have given jou ended, was by having a substan¬
these national income figures be¬ tial
portion of the public debt in
call

"national

No matter what eventual action

The average computed in¬

some

If

provident. We cannot wholly rely
the long-term upward trend of War because that was the; rate
national income to outweigh the
employed by the Treasury for its
costs of future emergencies.
financing operation in December
In the decade following World
1941; an operation that was hardly
War I the average national In¬ concluded at - the time of Pearl

en

it

threat of

than

World War I.

Reserve Banks, etc.

requires
of

are

smaller

Federal

the

of

lower sinking fund

First,

illustrate

happen to interest pay:-,
changes in the. debt

as

structure occur.

one

controlled1 interest-rate

A

characteristics

of future tax reduc¬

1%, but it must be said that any
sinking fund seems im¬

the

can

ments

mercial

"compulsion."

stand

may

within

It is worthwhile to

what

classification. Consequently,
may be said (in at least a tech¬

market

Perhaps, under such an
outlook, political expedience will
a

sues.

sound as though one
of the outstanding weaknesses in
our
financing policies has been
the heavy use of short-term se¬
curities.
This is not necessarily

tions.

call for

higher were it not held
down.by the very large percent¬
age of short-term low-coupon is¬

This may

materially

nations,

foreign

taxes

words—they

way

liabilities

.levy would

far

be

licly held issues outstanding as of

annum,

The comparison
shows, nevertheless, that with a
1% sinking fund and the prevail¬
ing low rates of interest, the
average
annual
burden of thedebt following World War II will
be almost four times (in terms
of our income) that which was
borne in the ten years following

in General Fund balances,

creases

will

charges

in

per

Aug. 31st represented a 12 months
Treasury liability.
;

decrease over the next ten years.
In

.88%

was

nical sense) that 50% of the pub¬

figure provides for a

a

dollars.. J This annual

debt

year

sinking fund so small relatively,
that there is no prospect (under
normal conditions) that the debt

cause

(2) During the ten years fol¬
lowing the war we reduced the
debt by almost 9 billions but, of
this reduction, less than three
billions came
from the general
receipts of the Treasury — we
might say, from taxes. The re¬
mainder, or bulk of the debt re¬
tirement, was provided for by de¬

•

the country can be severe. I urge
each of you, therefore, to devote
.

The results

such

prospective in¬

the

Savings Notes and 43 billions of

true.

problems

„

ture., We have a

term liability, the. Treasury also
had
outstanding 10 billions of

it

force#

were

debt

terest burden bf close to 6. billion

In addition to this short-

annum.

mand

we

Our major concern, however, is
not with history but with the fu¬

E, F and G Savings Bonds. These
represent, in varying degree, .de¬

dollars per

billion

9

but

bor.

The

future

with

coincident

as

Wartime

interest cost on this por?

of

tion

months.

12

exactly
the

by the Jap attack oh Pearl Har¬

cushion for the in-i

some

and

Size and Nature of the Debt

The

within

average

emergencies. One figure that has
been suggested is 1%, or three
billions per annum. Others think
that such a figure represents too
large an annual drain on rev-^
kgygSt pclidj
1 enues.
Since, however, 1% aver¬
Second, the vulnerable position age, debt retirement over a period
of the commercial banking system
of ten
years
would reduce the
as
the largest single holder of
debt by no more than 30 billions,
I have presumed to use such a
ings banks seem likely to be a figure in this comparison.
beneficiary, in one degree or an¬
(3) The average computed in¬
other, of this vulnerability of the terest rate as of August 31 vyis
commercial banking system); and
1.95%.
This is a low average
Third, the degree by which the rate. It may be possible to reduce
accumulated potential purchasing
it further but the total of interest
power, which has been created by
payments by the Treasury seems
our
wartime fiscal policies and
likely to approach 6 billions per
wartime efforts, may complicate
annum.
:
1
the achievement of sound debt
(4) The prospective total ser¬
management and perhaps even vice
charges on the debt are,
threaten the private capital sys¬
therefore, somewhere between 8

prehensive minds, of great

a

provide
creases

debt
into

is

Aug. 31, last, 36% of the

poses,

possible effect on total in¬
terest payments of various changes
in
the debt and the rates of in-

ing and emphasized to me the de¬
gree by which the service costs
of the debt may be the subject of
future political scrutiny.

pressures, are necessary,

re¬

degree of debt re¬
will be determined by

the

and II.

tical experience, operating with
; relative
freedom from political

drastically

we

The

it.

debt

public marketable issues may be
said to mature, for practical pur¬

simple solutions to some tirement
problems yet prove to be the. the consensus of political opinion
platform from which more dras-i as to how much we should, at¬
tic changes would be propelled.
tempt to retire debt in order to

from text books and charts. Com¬
prac¬

As of

debt

to
v

that

suggest

the

on

to be found in its structure.

largely

from taxes, there seem to be few
bold enough, or rash enough, to

rather

cost

low-interest

With

taxes.

from

billion dollar debt, retire¬

300

a

was

therefore, to the resulting

lary,

only "a minor portion of the re¬

Thursday, September 27, 1945

v

-

<1.928%:
On Aug.
31st of this year the average rate
was

had increased to 1.945%.

In spite

j of the low rates which have
companied

the

War

ac- i

financings,

and in spite of the sharp increase
in short-term liabilities, the aver¬
age rate on War-issued securities

Volume

is

THE COMMERCIAL & FINANCIAL

Number 4424

162

.than

less

1%

of

well known, namely, the relative
increase in the potential purchas¬

ing debt. The rate of absorption
by the commercial banks of recent
debt increases has been, however,

Note that this is only

1.84%.

TQ/lOOths

the

rate on the debt outstand¬
of Aug. 31st. The average
rate on the securities sold in the
Seventh ! War
Loan Drive
was

average

ing

at

as

higher

a

rate

I

would

(Continued from

defend these figures. I know that
estimates of the
kind which I
shall

discuss these
of

could be made the sub¬

use

.

watched, is at¬
tested to by the Treasury's acqui¬
escence to the lowering of market
rates
that has * taken
place in
bank-eligible securities this year.

The

being

was

.been reached that the per¬
centage of bank holdings of pub¬
lic issues may approach 45% or

consistency with which the Treas¬
has been refunding maturing
obligations with %•% certificates,!
and by the omission in the Vic-i
tory Drive of any marketable is¬
sues between
%% and the bank-

more.

30%

almost

1944

is

re-

the

cial banks, will continue to be re¬
funded—and I am inclined to use

In

solely—solely with cer¬

the word

tificates.

should

Certainly

•

remove
political de¬
any future increase in
short-term interest rates.
Also,
from

we
realm

the

of

sirability

growth
the

any

desirable, over, the
to reduce the

reason

next

five

•

years,

present and prospective floating
debt, it will be necessary to de¬
crease
the rates; on short-term
securities or witness increases in
the total of Treasury interest pay¬
ments.;
•

might sum up here
some of the things which we have
been
over
with respect to
the
structure of the debt, etc.:
Perhaps

we

First, I think it has been clearly
of

costs

our

service

annual

the

shown' that

Public debt will be

item in our Peacetime
expenditures and potentially the
Subject of major attack in Con¬
major

a

gress.

payments

interest

Treasury

and that it will be very difficult
to

lower

the

total of

ments under any

these

pay¬

increase in short-

term interest rates.

J Third, that to avoid

increase

an

in the total interest payments

also

requires that we either continue
indefinitely with our present high

percentage of floating debt or
bring about a further decrease in
the interest rates on short-term
securities.

Fourth, that the Treasury is ap¬
parently quite conscious of the
political dynamite provided by
our
large total of interest pay¬
ments and may, by consistent re¬
liance upon shorter-term secur¬
ities, starve the intermediate mar¬
ket and thereby bring about an
even
lower rate of interest for

;

(I might

bank-eligible securities.
; add

that it is

here

opinion

my

will not attempt
reduce the long-term 2%% rate

that the Treasury
to

ineligible bank securities and
that the continuation of this rate,
on

together with a lower rate for
eligibles, is practical over
an indefinite period.)

•

net

bank

Commercial Banks and the
We

will

now

take

up

our

Debt
sec¬

should

fact

,

-

■-

■

,

;

that the holdings
commercial
banks of
securities
has
been
brought about largely as a matter
of Treasury policy and Wartime
needs, and that the position of the
commercial banking system (both
with respect to: its holdings and
the rates in the bank section of
the market) was taken involunbeginning

by
the
Treasury

tarily and, in largest measure,
response

t

banks
•

'•

roughly Yz of the total

outstand¬




com¬

approximately
250
billions
compared with less than 100 bil¬

we

cannot

there
the

that

lions

reconversion

the

at

the

start

crease

and

of the

war.

such sharp in¬
in the liquid assets of busi¬

Obviously

the

special obli¬
extremely low

an

most of these
possibilities
of legislation which miaht have a
drastic

but

open

effect

up

any

individuals

and

nesses

accommodation

makes

it

mental controls

to be in¬

appear

ordinately low, particularly when
one
considers
the
element
of
credit risks involved in peacetime

operation, the additions to gross
income

interest

may

well

come

along in the years 1946, 1947, etc.,
v/hereas the bulk of losses may

postponedHmtil

be

Thus the

later years.
net result of loan¬

true

ing operations would not show in
those years during which Treas¬

etc.)

(rationing, wages,
being lifted.
Whether
large total of liquid
will be held out of the

are

this

not

or

assets

market until such time As peace¬

production is capable of ab¬
sorbing it without an undue in¬
crease
in the price level,
is a

time

of conjecture.
Certainly,
dependent, in this respect,
two things:

matter
we

on

are

(1) On efficient cooperation be¬
tween business, labor and Gov¬
interest payments may be a
ernment sufficient to give us a
source
of
maximum
political
fairly speedy attainment of rea¬
scrutiny.
full peacetime produc¬
It is perhaps pertinent also to sonably
point out that if a fairly substan¬ tion, and
(2) Upon the whims of mass
tial redemption of Savings Notes
and Savings Bonds takes place, psychology.
This situation is important be¬
with a corresponding
refunding
cause
if things work out unfor¬
into short-term issues to be ac¬
quired by the commercial banks, tunately, that is, if mass psychol¬
ogy took an adverse turn, or if
that an increase of as little
as
Y\ to %% in the short-term rates business, labor and Government
(tip to five years) would, of itself, were unable to work sufficiently
increase the gross income of banks well together, we could precip¬
itate some kind of explosion in
by an amount equal to the net
ury

profits before taxes for the year
1944..
To

gone

.

summarize

our

before,

on

second

.

•

i

con¬

!'■'

we

!■'■:"!'

might

say

.,

First, the principal recipient of
Treasury interest payments is the
commercial banking system, and
Second,

that

any

increase

short-teFm interest rates will

the

on

free

opera¬

tions of a private banking
private credit system.

and

the

litical
terest

labor

Consequently,
seen

some have fore¬
the ultimate need of quali¬

tative

controls.
Qualitative con¬
might be governmental re¬
strictions
applicable to various
types of credits, such as those
used to regulate borrowing
on
securities. But, the moment that
we get into
qualitative controls,
particularly when we are faced
with the
we

kind of

a

workers

tion rate
this

force

in

released

from

month

the

the

from

to

450,000 discharges
about 800,000 by

end of this. year.

the

next

•

four

lish

themselves.

Each

day finds

the reconversion program further
ahead with employers calling for
workers to return to the machines

which

will

turn

out

peacetime

%

products.

situation that

"For

example,
the v United
Employment Service has
completed a survey in the

States

just

Southeastern

States

find

to

duction.

dustrial
survey

Only 23 of the 410 in¬

plants included in that
reported they expected to

discontinue

production

entirely

as

a

It

was

ually compress it without pop¬
ping it.
In
other
words,
legislation

definite plans to reconvert

which starts out with the osten¬
sible purpose of

meeting the rela¬

in

vulnerability
situation as po¬
Treasury in¬
payments increases.
,
banking

concern

Purchasing

over

Power

and

Management

Debt
*

made

tiriie • of

at the

least

unpopular

their

in
the

instigation.

good

efficient

utilization

of

our

pro*

able to
avoid any such unforturiate situa¬
tion, it seems that at some time
ductive facilities,

we

are

1

in the future it will be necessary

?

to

place upon our economy some
which will avoid repeti¬

brakes

tion of our experiences
World War I.

following

respects that the
economic and the fiscal problems
It

of

is

in

these

Government

clash.

It

is

gen¬

erally conceded that quantitative
controls for such purposes (such
as

upward revision of Federal Re-

war.

that 377 plants had

within
time; 166 planned to re¬
a future date; 150 had
no
reconversion problem and 4?
had
already
completed reconj-

a

short

convert at

version.

^

'V,*

"Reconversion plans are chang¬

ing rapidly,

the

survey

showed,

a

Government

then it

production,
that

we

to

seems

me

have truly come face to
a most sincere danger

face with
to

the

private capital system.

It

is the

private capital system upon
which
many of
our
individual
freedoms depend.
A peacetime
production that is satisfactory to
cannot

Americans

attained

be

in operation.
The same situation
prevails in other parts of the

country.
-

meeting

"In

the

problems

of

post-war employment the United
States
Employment
Service
is
taking full advantage of the tech¬
niques
and
procedures
which
were
developed during the war

without it.

years.

Therefore, I say to you, gentle¬
men, that interest rates (as such)

the

seem

to me to be the least of our

worries.

if there
changes in

But,

prospective

are

any

interest

Most important of these is
spirit of cooperation and mu¬
tual understanding at the com¬
munity level through which labor,
managements
and
the
public
work together for the solution of
their common problems."
;

powering position of Government,
the obvious

ernment may

termediate

desires

bring about
areas

of Gov¬
a

lower

rather

in the peacetime

the broad problems of
public debt management.
Any
general lack of understanding of
these can permit unwise legisla¬
tion to strike at the heart of the

years

are

system.
I hope
individuals, and
acting jointly, will concentrate as
private
each

of

capital
you,

as

iriuch time and effort as you pos¬

sibly can on the larger and more
important aspects of public debt
management and its related fields
and I hope that every Congress
man
and
Senator will see you
more

often,

often, hear from you more
and receive more of your

assistance

than

ever

before.

Kalsey, Stuart Sells

than

higher ones. The longer rate I
expect to see unchanged.
The
most important obstacles which
lie ahead of us

if, by good fortune, and
individual judgment, and

Even

found

further encroachment by that they had no plans to con¬
into the
fields of tinue operations nfay secure work
private
banking
and
private which will enable them to do so.
credit.
"Within one week, for example,
If the private banking and the six plants which at first did not
private / credit systems are not expect to continue , production,
kept free of further encroach¬ later notified the United States
ments by Government, or if they Employment
Service that they
had received orders which would
prove, in their operations, inade¬
quate to the needs of peacetime enable them to keep their plants
bring

interest rate in the short and in¬

be

result of the end of the

quite
quickly
in
measures
of 'and there is a possibility that
qualitative controls which might some of the employers who stated

behind this ex¬
plosion, and any sufch attempts by
would

out

how many war production plants
would reconvert to civilian pro¬

with both hands in order to grad¬

and

struct the forces

war

ployment Service must be .pre¬
pared to help more than 2,500,000
veterans find jobs and re-estab¬

have with respect to our

stances, fairly sharp actions might
be taken by Government to ob¬

Government

the

com¬

months,
therefore, the United States Em¬

rates in the offing, then the over¬

the direction which would be

we

year,

General Marshall has in¬

"In

price level which could be
devastating. Under such circum¬
our

ac¬

centuate the political
of

the

Congress that the War
Department is prepared to in-,
crease
the monthly demobiliza¬

needs of busi¬
possible for very severe i pres¬ tivelysimple problem ofTreasury
ness, consumers,v agriculture, etc.
sures to be placed under the price
interest
payments and interesi;
Unfortunately," while the rates of¬
structure at a time when govern¬ rates
could
become
involved
fered by banks for such credit
credit

peacetime

of

"The return of veterans to

debt
structure, its ownership, and the
importance of .Treasury interest
payments, we are on dangerous
with 66 billions at the end of 1939.
ground.
It might be compared
From another source, the Life
with trying to reduce the size of
Insurance Companies of America,
a toy balloon by pushing a finger
a
survey
published last August in one side of it. We
quickly find
estimated the combined liquid as¬
that we must attempt to surround
sets of businesses and individuals

consideration, namely, the degree
by which the accumulated poten¬
tial purchasing power of the coun¬
try may complicate sound debt
management and perhaps even
threaten the private capital sys¬
tem. I shall use some figures here
to
illustrate
something that is

in our War effort.

rate;

alternatives

liquid assets of businesses
and individuals totaled 194 bil¬
lions at the end of 1944 compared

cooperation of the

of ,the

interest

bined

Now with respect to our third

end of last year all
commercial banks held 77 Yz billion of the 213 billions of the pub¬
lic issues then outstanding.
This
was
37%
of these issues, and
•As

To put it another way and us¬
ing dollar figures, the Federal
Reserve estimated that the

to the Government's re-

quest for the

•

in

liquid assets of

were

1939.

that:

the

the

260% greater at
the end of 1944 than at the end of

■largest single holder of our debt,
I would like to emphasize in
•

end

The Federal Reserve study also

f

alterna¬

trols

individuals

end

formed

1944.

showed that

the

anticipate a steady decline in the
weekly rate of separations.

gations bearing

showed that this had ex¬

1939 to 46 billions at the

it

plants.

corporations

S.

de¬

week

ing weeks will greatly outnumber

time the

of

sideration and tie it into what has

.

U.

of

been

Last

to

bank-held debt into

a compilation of
in the net working

of

position of the
-commercial banking system as the
vulnerable

the

same

week,

1,800,000,

release has

of

civilian

panded from 25 billions at the end

additions to

some

from

tem

ond consideration which concerns
'

capital

income of the banking sys¬

gross

At about the

first

the

totaled

steadily.

terest

375% of

were

fol-

weeks

tives have been advanced, such as
the refunding of a part of the

liquid

the

four

since

down

before

Some

job

con¬

only 160,000.
And,
although approximately 1,000,000
additional
layoffs are expected

Reserve

payments.

first

war

cancellations.

the entire surface of the. balloon

the

be

surveys

rate

clining
was

rediscount rates,

Federal

from

and

layoffs

tightening
credit, etc.)
cannot be used except at the ex¬
pense of increasing Treasury in¬
of

at

connection

that

last,

the

ever

the

confirmed

telegraphic

our

serve

published

which

to increase.

In

Tn

have indicated—that the nation is

of

assets

resulting

cutbacks

owing the Japanese surrender
some
2,500,000 layoffs occurred.

who

women

Hawaii

and

what

study showed that

31,

increase

the

only

was

This

Dec.

1939.

SEC

1943" the

In

profits

States

those which existed at the end of

slightly greater than the amount
of * Treasury
interest payments
to
the banks, and in
1944 the
net
profits
apparently
were
wholly offset by Treasury inter
est payments. It is not a question
of whether the net earnings of the
banking system are greater or less
than can be justified from an eco¬
nomic, banking or equitable point
of view. The point is that politi¬
cally, Treasury interest payments
will be a subject of increasing
concern and that the earnings (be¬
fore taxes) of banks will continue

overlook

Second, that the principal item
represented

Of service costs is that

by

millions.

tract

when

just prior to entrance
War
and
subsequent

assets of businesses

time, recent bank
earnings have been as follows;
For the year 1943 net profits after
taxes were 638 millions, and in
of

of

as

same

751

the

thereto.

come.

amount

the, liquid

in

years

into

per¬

payments received by them
—certainly for several years to
the

"ayoffs

But

businesses and individuals during

terest

At

pos¬

and

men

well beyond the crest of

than 1,750 free, full-time employ¬
ment service offices in the United

made of the rapid

a measure was

centage of the debt increases fur¬

recognize
that if
it
it should prove practical or, for
1944,
must

we

the bank

as

its

to

"These

1456)

page

now

are

direct the operations of the more

study published last June
Federal Reserve Bulletin,

a

the

in

ther, some increase will occur also
in the percentage of Treasury in¬

belief that

as

problems, which

vital

sibilities.

annual interest pay¬
ments; In spite of what seems to
be Treasury policy of refunding
existing bank holdings with cer¬
tificates, the rate of increase in
holdings is sufficient to justify

fundings, in which the maturing
issue is held largely by commer¬

debatable

not

the

of

Treasury

every

that future

believe

to

is

There

2Y4S.

ineligible
reason

-

of

is

important. There¬
fore, regardless of any differences
based on grounds of strict accu¬
racy, I believe the general outline

According to estimates which I
commercial bank¬
ing system was receiving at the
end

which

such

importance to the
nation, the States, and every in¬
dividual community in the re¬
conversion period.

accuracy

size

•

ury

my

friends.

economist

of the figures is
not important. It is their general

have made, the

costs

erudite

more

has

This has been underscored by the

ject of considerable debate by

1479|

Lay-0fis Have Passed Peak

of business and indi¬
not attempt to

power

viduals.

than the 37%
percentage of holdings. Because
of this, and because of the pros¬
pective shifts in ownership (from
1.99%.
*r,
"
iThat interest payments are a corporations, individuals, etc., to
political consideration, and that commercial banks) chances favor
this slight increase in borrowing that when the Wartime debt peak

ing

CHRONICLE

A

banking

group

headed

by

Stuart & Co., Inc.", on
Sept. 26 was the high bidder for
an issue of $81,602,000 of 3% re¬
funding mortgage bonds due 1990,
offered by the Union Pacific Rail¬
road Co., in competitive bidding.
The group bid 103.3599 for the
bonds, with a second syndicate,
headed by Kuhn, Loeb & Co., Of¬
fering to pay the road a price of
Halsey,

103.209 for the issue..
The
fered
same

;

Y"

syndicate reofthe issue publicly on the
date at a price of 104, sub¬
successful

ject to formal award and approval
of the Interstate Commerce Com¬
mission, and was

oversubscription
the books

able to announce
and closing of

in a matter of minutes.

Full Employment

"continuing full employment" be
applied to seasonal workers, spe¬
cialized workers, migratory work¬

In

apprentices,
incompetents
are
discharged, and those

ers,

who

Is not the need
employment greatest

jobs?

changing
"full"

for

(Continued from first page)
ture to increase employment and,
of the proposal haye the
to
the
extent
that
these are
means by which they can smother
likely to prove insuf¬
such analyses while, at the same thought
time, they can give wide dissemi¬ ficient, he is to provide a program
of Federal investment and expen¬
nation to glittering statements and
diture.
His recommendations are
plausible propaganda in favor of
to favor the utilization of private
the proposed program.
A farenterprise "except where the per¬
reaching propaganda machine is
formance of such work by some
in operation, and it is steadily
other method is necessary by spe¬
gaining momentum.
cial circumstances or is authorized
Furthermore, the proposals in
by other provisions of law."
the bill are presented in a manner
If,
conversely, the estimated
that will tend to win approval
aggregate volume of investment
more or less automatically and to
and expenditure is more than is
disarm those who may not read be¬
supposed to be required to assure
tween the lines or grasp any dan¬ "full"
employment, the President
gerous implications which the is required to present a program
plan may contain. The principal designed to contract this volume.
device
employed to accomplish
He is also authorized to submit
this aim is the incorporation in
the bill of a lengthy declaration supplemental or revised estimates,
Eponsore

or programs, or legislative recom¬
of mendations to Congress "from time
to time."
He is required to re¬
a preamble; and this is not law,
view all Federal investment and
despite the fact that it follows the
Enacting clause.
"Legislating by expenditure quarterly to ascer¬
tain
any
changes
supposedly
preamble," a device that has been
needed in the volume of Federal
employed extensively in Washing¬
ton in recent years, cannot be de- investment and expenditure, and
iended in legislative law; and it "the rate of Federal investment

supposedly-admirable purposes.

of

Such material is in the nature

Is dangerous because it is
mislead a trusting public.
,

It

that enters

material

and

of

chiefly into

pose of assisting in assuring con¬
discussion of this bill
tinuing full employment. . . ."
\
and is utilized, because of its
This National Budget is to be
emotional appeal, in the organized
propaganda now being brought to prepared' in the Office of the
in
consultation
with
bear upon the general public and President
members of Congress by certain the members of his Cabinet and
A d m i n i s trative, Congressional, other heads of departments and
jan<t yarious other pressure groups, establishments. In addition, there
the major defects or virtues is to be a Joint Committee on the
National
Budget
composed
of
tbis bUt are not found in the

announced purposes.
They are in
the mechanism designed to pro¬

Senate
and fifteen members of the House
of

members

fifteen

the

employment.
And who are supposed to study the
since
this
mechanism involves Budget and to report to Congress
complex questions regarding sta¬ by March 1 of each year.
tistical measurements and intricate
The bill provides that nothing
causal relationships in the eco¬ in it shall be construed as calling
nomic world, many economists for or authorizing the operation
and others opposed to the social¬ of plants, factories, or other pro¬
ization of our economy fear that ductive facilities by the Federal
the general public may not be in government; or the use of com¬
a position
to weigh the factual pulsory measures in the distribu¬
evidence which reveals the merits tion of manpower; or any change
'or dangers in this program.
Re¬ in existing procedures on appro¬
garding many, if not most, of the priations; or the carrying out of,
basic assumptions made in the or any appropriation for, any pro¬
biU, some of our most experienced gram set forth in the National
and reputable economists are en¬
Budget,
unless
such
program
tering vigorous denials as to their shall have been authorized by
accuracy or practicability.
some law other than this bill.
"full"

The arguments that have been

Provisions of the Bill
The bill provides for a "National
Production and Employment Budg¬

et," shortened to "National Budg¬
et"—a budget which far exceeds
in complexity of concept our large
and complicated Federal Budget.
It is to include the estimated size

of

the

labor

force

and

ably,

the

esti¬

mated aggregate

volume of invest¬
expenditures „by private
enterprises, consumers, and state,
local, and Federal governments
supposedly required to produce
the gross national product deemed
necessary, at expected prices, to
provide full employment opportu¬
ment and

offered in behalf of this program
are

essentially those set forth in

the bill's declaration of purposes.
The

the

significant considerations for
people of the United States

those raised by analysts who
have studied
the bill carefully
are

and

in

position to appraise
implications with accuracy. In
general, their queries and obser¬
vations, thus far, follow closely
the following summarization.
are

"

This

bill

cal data

directs

Is

able

statisti¬

our

complete and reli¬

were

or

President

the

though

be

can

available

made

when

needed.

make

predictions

It

him

directs

to

the basis of
and

on

data known to be incomplete

unreliable:

It

proceeds upon an

assumption that a deficit in What
is supposed to be the "proper"
amount of spending and invest¬
ment can be stated with accuracy,

that

and

lated in

this

deficit

definite

a

or

re¬

to the

which has pre¬
be predicted.

unemployment
vailed

be

can

manner

may

Assertions Cut Loose from

National

the

Realities

for exports and imports as
affect the volume of the gross
national product.
•
The

President

is
required to
budget to Con¬
gress
at the beginning of each
regular session. The Budget is to
be applicable to the ensuing fiscal
year or such longer period as he
may
deem appropriate.
If the
estimated volume of prospective
investment and expenditure for
any fiscal year or longer is less
transmit

such

a

volume

investment

of

how

states

govern¬

mental
policies are to promote
private enterprise, how they are
to bring about the desired activ¬
ity on the part of business, how
they will assure "full" employ¬
ment, how consumers' expend¬
itures

will

increased

be

creased

as

outlays

of

desired,
business

creased

or

decreased

and

so

just

on,

of

tions

as

de¬

or

how
will

capital
be in¬
needed,

though asser¬
type in a law can

this

as

effect the ends desired.

The bill incorporates what has
be known

to

come

satory * economy
soundness

a

as

which

of

compen¬

the

program,

has

been

challenged repeatedly by many of
our most responsible economists.
Provision

is

made

for

govern¬

spending to take care of the
"deficits" in the National Budg¬
et.
No consideration is given to

ment

the effects of taxation or borrow¬

ing

In

the private economy.

on

far

so

the theories in this bill

as

go, taxation and borrowing

character.

of

a

are

in¬

questionable

Most of these concepts

.

than

the

quired

to

estimated

volume

re¬

"full"

employ¬
ment, the National Budget shall
provide for correction of the de¬
ficiency.
The President is to set
forth ways of encouraging nonassure

Federal investment and

expendi¬




are

matters

economists
and

as

curate

to

of

both

the

dispute
as

to

among

definition

possibility

of

ac¬

measurement.

"full-time"

employment —
many days per week must
cne
work, how many hours per
day, how many adult members
of
the family must work, how
many holidays may there be, at
what age may one begin work,
how

debt

might

heavy

and

dis¬

possible size of the Federal
to other unfortunate dis¬

or

which
the
proposed
government policies and actions
probably
would
cause.
Under
this plan we could have a series
turbances

of deficits until the

of

doubt

Many

there

that

is

in economics, or in
economic history, for such an as¬
sumption. They insist that much
of our thinking in the late 1920's
was
of this
type.
We thought
then, they say, that if we could
maintain a stable price level and
continuej certain other "enlight¬
ened" policies, which our govern¬
ment was supposed to be pursu¬
ing, we could escape a secondary
and severe postwar reaction. We
were soon taught the foolishness
of those notions.
Today we are

just

in the late 1920's.

as

How

Much

There

is

is necessary to put a certain num¬
of

people to work. For in¬
during the days prior to
the pump-priming program of the
1930's, when the Federal budget
was
approximately five billions
of dollars, what was the relation¬
ship of this budget to the number
of
people
employed?
Accord¬
ing
to
fairly conservative es¬
timates, the best we can expect
in the way of a "normal"-time
postwar budget is one of, say, 25
billions of dollars. With a budg¬
stance,

of

et

times

five

the

pre-pump-

what would be
the relationship of this extra 20
billions of Federal expenditures
to
the
number
of people
that
priming budgets,

and

would

ployed?

would

be

not

'

em¬

difficulties• in

"solving" the
unemployment
by
government action: A government
is

Compensatory Economy

slow

in

launching

The bill, like the general run of
comments

it by its proponents,

on

to reveal

clear under¬

no

mental expenditures, The flow of
clined

to

the lowest
the

time

new

a

level

trickle.

record

on

embarked

we

armament

enterprises de¬

mere

The

up

upon

the

to

at

its

would

sponsors

warrant

theories

on

asking

to

a

More¬

none

that

for the
which it rests.
They
the

United States to

the

offer

the

support

of the
accept the bill on
people

basis

declaration

of

of

public

works.

of

assertions
purposes.

•

small

ot managerial statisticians *
them, and that both Con- *
gress and the President would act
upon such estimates.
Otherwise,
they would be defeating the chiefpurpose
of the program.
The /
,

probable
the

would

consequence

be

that, through the
of this bill, we had in¬
stituted in large degree a Feder¬
ally-managed economy with the
management actually in the hands
of a small group of statisticians.
discovery

passage

Question

of

Another

Individual

Freedom

serious

question in¬
volved in. the program is whether
security in the form of assurance
of "useful,
remunerative, regu¬
lar, and full-time employment"
be

can

given to individuals by
without at the

government

any

same

time

sacrificing, to an undesirable"
degree, the freedoms which indi¬
viduals must have if they are to

forward In the best possible

go

The bill does not face

manner.

the fact that

an individual cannot
have freedom without, at the same

time, incurring risks. It assumes
that the people
of the United
States have reached a stage in
which they are willing to sacriguarantees of freedom
a

spuri¬

guarantee of employment. It
embodies the doctrine that every
is entitled to obtain

person

a

liv¬

ing from the government regard¬
less of whether he has the ability
or
the willingness to produce

enough to justify the pay. which it
is proposed that he shall have.
Just how does the Federal gov¬
ernment propose to see to it that

the

person who desires "useful,
remunerative, regular, and fulltime employment" is to get it?
Who will decide whether the
job

is "useful" and What is "remuner¬
ative"?

a

Will rates

of

differ

pay

will

they be uniform? What is
"regular" and a "full-time" job,

or

and

how is

are

where

The

to

get it if there
in the fields
qualifications
lie?

one

openings

no

one's

net

vague

meaning of
words—"useful,

all

these

remunera-

tive; regular, and full-time
ployment'.'—can be nothing

em¬

but
of

regimentation

those people who may be so un¬
fortunate as to become the vic¬
tims of the system

by

its nature,
institute.

which this bill,

apparently

The fact is that if

an

will

attempt is

to be made by the government to

provide

employment

with

in

accord¬

unemployment ' and,
therefore, labor often must be
moved to distant points and per¬

vaguely-worded
promises in this bill, the govern¬
ment, of necessity, must deter¬
mine

when,

what

conditions

areas

ects, once
started, are rarely
stopped when the need for such
employment
disappears,
partly

ance

the

employment

where,
may

because of the waste involved in

or

for which there may be

or

no

little

or

demand. The .supervisory bu¬

reaucracy is wasteful, expensive,
politically minded, and tends to
perpetuate itself and to expand
its undertakings. There is a ten¬
dency to compete unfairly with
private enterprise and to cause it
to shrink or die, which, in turn,
provides the "excuse for still fur¬
ther
expansion of government
employment activities.

Shortcomings of

a

Program

Despite
and

other

:

provision for advisory
committees, the pro¬

posed National Budget would be
,n control of a small group of stat¬
isticians who would devise pro¬

of

grams

based

national expenditures
their statistical esti¬
is hardly reasonable to

upon

mates.
suppose

It

that the thirty otherwise

busy members of the.

Joint Com¬

be construed
authorizing "the

of

This fact

as
use

calling for
of compul¬

of any type what¬
determining the allocation

sory

measures

ever

in

distribution of manpower." The

existence of

a

■

painful amount of

unemployment will supply all the
compulsion that is necessary. This
bill opens the way to

.

far-reaching

government action to insure such

employment as it may see fit to
provide.
The government could,
and probably would, enter many
fields of activity that are not
proper functions of government—
if

we

of

Statistical
.

under

seekers

work.

may

enterprises.
There is the question of how to
utilize the products or services

incompleted

and

the

is not altered by the statement in
the bill that nothing in the plan

the

the

proponents of this bill.

over

are

—

reached

this

gave

and

It is- difficult to start these in the

our

point
depth
of the depression in July, 1932.
Facts of this type are ignored by
program

that

machine

haps

in the Past

,

of

cumbersome

a

• advisory
the Presi-

group

government

:

The

problem

other

'and

ous
;

how much government spending
ber

estimates.is that this

on

to obtain what is in fact

Is

nothing in the pro¬
that would indicate

plan

count

groups, Congress, and
dent would take what

fice their

Spending

Necessary?

posed

Committee

such

in

be provided with special
housing and other facilities. Proj¬

public credit

collapses.

faith—on

notion

postwar reaction.

bas>is

,

and

wthe

severe

economists

the

exceedingly

and at what ago may or must one
can

economy

to the

retire?

How

smooth

a

peace

turbing. No consideration is given

below

What, for instance, is "regular"
and

effect
a

plan fails to recognize what
qualified economists know to be

be

velocity of hank deposits; which
In general reflects people's op¬
timism or pessimism, declined to

statistical data

can
to

measures,
transition

level is being stressed

It

which

and

govern¬

stable price

realities.

capital into

our

that

series of assertions cut loose from

penditure, regular and full-time
employment, and so on, regarding

adequate

available,

assump¬
The importance of a

concern¬

ex¬

one can

tions made.

Budget?

and

used

What

is

any

and
ootain
a
genuine <
understanding of the nature and
shortcomings
of* the * raw / ma- 4

terial

to

-

ticians

as¬

more

and enable the country to escape
a

mittee of Congress would go behind
the reports of the - statis-

in the light of the evidence

sume,

that

persons
reasonable

is

it

that

seeing essentially similar

standing of the net effects of sim¬
ilar government policies in the
ing the concept of the National past, as, for example, during the
Budget. Its reliability and value, 1930's. When a policy, much like
nities.
It is also to contain esti¬
quite apart from matters of pur¬ the one proposed, was tried in this
mates of the contemplated invest¬
and practicability of ad¬ country during those years, the
ment and expenditures of these pose
economy was
so
disturbed that
groups, apart from the National ministration, rest upon other con¬
those of gross unemployment remained at a high
Budget program, including such cepts ; such as
national product, the aggregate level despite the heavy govern¬
foreign investments and expendi¬
tures

qualified

Indeed, the bill is essentially a

a

questions arise

things

volved, the central government,
"p.v; if it will only take appropriate

the basic elements in¬

on

volved

seems

Serious

which this
There are
who maintain

the

do

bill takes for granted.

ques¬

■/

■

to proceed as

its

What

difficult

more

even

tions.

expenditure may be varied to
whatever
the President may deter¬

mine to be necessary for the pur¬

really

.

manner

the popular

vide

living standard of peo¬

considera¬

important

/ Another

tion is whether a government can

ple is lowest, and least when their ments will make serious mistakes
standard is highest? Does not the and cause maladjustments than it
idea oi "full" employment dissoci¬ is to assume that they will al¬
ate
wages
from
productivity? ways act with wisdom and proper
Are not prosperity and produc¬ foresight.
The hill takes for granted that
tivity, rather than "full" employ¬
even
ment, the major considerations?
though a nation has been
Some
of
the
other
concepts plunged into a severe war, with
mentioned, such as that of gross all the attendant serious and rad¬
national product, involve, prob¬ ical
adjustments
that
are
in¬

whatever extent and in

preamble-type

this

is

used to

when the

Thursday, September 27, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1480

are

to maintain the system

private enterprise.

Although
is

purposes
a

the
not

declaration

law,

but

of

rather

psychological

trick, the state¬
one of the
purposes of
plan is to "contribute to the

ment that

the

full utilization of

sources",

our

national

re-

symptomatic of the
unhealthy nature of this bill. No
well-informed person could possibly expect to have or to want
"full utilization of

sources."

-I

is

our

national

re¬

Such utilization would

s

(Volume 162

Number 4424 "

THE COMMERCIAL1 & FINANCIAL CHRONICLE

1481

P

the end of all conservation

mean
v

and

would

leave little
for future generations.

Creates

or

stacles.

Reconversion of Automobile

nothing

"Welfare State"

a

Industry at Crossroads

Despite the great concern re¬
peatedly expressed in the bill over

(Continued from

*v the ■ preservation, and fostering of

of

faith

in

the

year
ago
in a speech entitled,
"Idle Talk Means Idle Men."

strength of private enterprise. The
in

the

so-called

to

maintain

private enterprise in

many

the state itself." This bill

provides

ties

April of

conclusion

is

"It

was:

al¬

ready apparent that pacing of re¬

probably the boldest attempt
yet made in this country by gov¬
ernment "planners" to usher in a
Federally - controlled
peacetime

has been too slow for

conversion

early achievement of volume
production."

any

Despite
these
obstacles
de¬
by the Mead Committee,

economy.

scribed

"Continuing

full

employment"

be assured in

a

two

free soci¬

rather

than

increase

have

Ford

strikes

is

in

down

because

plants of 23

suppliers

and Hudson is down because of

foreman

strike

and

strikes

plants of six suppliers. Other

a

in

pro¬

an

..1J

that would

one

1

•_

*

-

-

yx

i

.

t

.

nhveipal
cirlo
rt-f
onfrimnHtro
physical side of automotive

The

u«r
must
employ the most people.
This reconversion is
peupie.
xms,
sufficiently mascould easily lead to huge Federal |
tered to state that we are over
spending, huge bureaucracy and the
hump in automotive reconpatronage, and, finally, to national version and that means we are
bankruptcy.
over the hump
nationally. So far
Although
the
bill
reconversion speed has exceeded
expresses
again and again an aim to encour¬ industry and government expec¬
age and to ^urtilize private enter¬
tations.
prise in carrying out the proposed
program, escape clauses are in¬ to narrow the
scope of individual
variably provided which would freedom.
They should regulate
enable the President, with the co¬
in the interests of peaceful settle¬
operation of a majority in Con¬ ment of
disputes rather than en¬
gress, to do practically anything deavor 1o
produce and to direct.
he pleases.
In addition, there are
They should narrow rather than
various broad and vague provi¬
enlarge
government
activities.
sions under which those respon¬
They should encourage hard work,
sible
for
the
proposed policies
prudence, saving, and self-reli¬
could attempt almost anything in
ance.
They should cease to cul¬
the way of instituting a Federallytivate the enervating notions that
managed economy.
self-reliance is no longer a virtue,

What

that the government owes all citi¬

Alternative?

job and

zens a

The alternative to this bill does

doing nothing to. com¬
unemployment—a matter of
great concern to all enlightened
people.
There is, as qualified

that

bat

economists

well

native that

can

the
and

know,

an

much

In

desire

to

it function
the

causes

result

in

best

and

of

can

pru¬

be too

unemployment, might accomplish
small benefits; but there is
no
basis for supposing that the

preserve

benefits

can

ever

be

comparable

to those assumed in this bill. Such

what

works,

when,designed primarily
provide employment, besides
being too expensive, rarely pro¬

maladjustments that
unemployment.
Then

to

they should endeavor to create the

duce

atmosphere favorable to the best
functioning of the system.

their

:

anything that leads to con¬
tinuing employment. At their best,

accomplishments
compare
poorly with those resulting from a

Specifically, they should foster

free

and

fair

competition.

They

small

fillip in the private
prise system.

should not compete unfairly with

rather

than

disturb

It

than in

type

that

the

our

rfepute believe the road to
higher standards of living,'greater
individual freedom, and greater
national well-being is to be found.
A

the needy aged and helpless
without undermining their selfaid

should

see

self-respect.

to

it

that

those

by

ethics.

science,

invention,

and

seek

to

and

learning,

broaden rather than




question

people
the

ities

are

tion

of

bill

thinking and activ¬

preserving and enlarging
of

the individual

or

War

w

Europe.

sources are

facts

conviction is that we'll be getting
tin

from

quicker than Government officials
apparently expect.
WPB
been
for

action

has

textiles

on

relatively slow but, except
osnaburg and burlap, there

to be no need for major
on

Unnecessary

Products,

Materials

Raw

started

more

I

than

two

efforts
are

off now.
Companies which
had pre-termination agreements
are
particularly well set.
Tn©
company which spearheaded this
industry in pioneering the devel¬
opment of pre-termination agree¬
ments has virtually completed its

job,

month after
clearance
program is working.
Barring a
breakdown in case disposal agen¬
cannot

one

The plant

take the full load in

get

dis¬
cuss prices as a group.
Even if
prices were not regimented and
knew

tomorrows

price of important elements like

steel, just to name two
myriad fluid cost .factors, no
would be possible now.
I

answer

doubt that any

has

company

car

received

prices from all of its
suppliers.
Manufacturers seldom
announce
car
prices until they
have stocked their dealers with
cars and are ready to sell them.
Based even on Mr. Bowles' car
price formula, with which I am
not familiar in detail, car prices
will be

higher—how much higher
depending on considerations too
to enumerate.

days, we

30

next

could not

Bowles

the automobile companies to

of

pay¬

ing

clearance

has in his possession.

now

Mr.

anticipate

numerous

with

reconver¬

industry is
of creat¬
ing a better product at lower real
prices.
New cars will be among

interferences

sion from this quarter.

Only one
point of field criticism is being
heard.
It is that disposition de¬
cisions are not being made rapidly
by
one
or
two
procurement
agencies; in other agencies, con-,
tracting officers are showing that
it
can
be
done, by doing it.
Fortunately, the automotive in¬
dustry made an issue of plant
clearance starting two years ago,
because
today's
performance
compared with plant clearance
during the war—is its own justi¬

Nevertheless,

our

committed to the policy

America's

this

and

values

best

will be the result,
years

primarily, of 45
of competitive mass produc¬

tion and distribution.

Perhaps this will make it clear:

12,-

approximately

years,

cars
will
be scrapped.
will leave our national car
,

<. substantially
below
levels.
I estimate that the number of
:
cars registered will rise to a 40,000,000 level by 1960. It does not
appear
likely that current and
pent-up demands will be met be¬
fore 1952.
By that time, if pre¬

inventory

prewar

pared and programmed
State and local highway
ization plans are carried
peaks of car use should

national,
modern¬
out, new

begin to

reflect themselves in still
car

greater*
Getting cities out of

demand.

muddle

traffic

their
almost

much

as

in

occurs

the

mud

because 85%

World War I

mean

can

getting

as

of

out

country

the
after

of

car

cities.

Surely by 1952 foreign markets
on an economic basis

will be back
to

nobody in the in¬
dustry can answer that one au¬
thoritatively. Mr. Bowles is per¬
haps the
only
person
in
the
country who can, because indus¬
try prices are completely and
thoroughly regimented.
I have
little knowledge on this sub]ect,
certainly much less than
Mr.

labor and

be¬

years

war

Pay for

Cars?"

At present,

Even

three

000,000
This

use

score.

New

manufacturers

fore the end of the

cancellation.

this

"What Will We Have to

Pro¬

Delays

planning

Fortunately,

no

rouch

Indies

East

the

appears

the Plants?"

cies

:

concern

and Production Equipment from

purchase

needed

and

cars

Economic de¬

trucks in volume.

is
commencing
in
American,
African
and

velopment
South

Asiatic countries where

geograph¬

ical and

population dispersion re¬
quire
highway
transportation
development along the same lines
as
this country.
This has never
been true of Europe.
: 7 :
Remembering the effect that

high level automotive production
of commerce
industry and remembering,
too, that the most conservative
estimate of postwar national in¬
come is $125 billion a year, one
cannot
determine
when output
has upon other fields

and

will

level

off

or

at

what

new

plateau average anndal
production will tend to sta¬

higher
car

bilize.^The

of

effect

higher

national and individual income in
terms of automotive

production is
revealed by
consumer expendi¬
ture
studies made by the Na¬
tional
Resources
Committee in
Those

1939.

studies

that

people with annual incomes
$1,000 spend only $100
year for cars, while those with
2,000 nearly $700 and those with
$3,000
about
$750.
This,
of
course, includes maintenance, re¬
pair, and operating costs as well
as purchase price.'
I
'
4
Yet,?'for some* reason, certain
of less than

and individuals are pic¬

groups

turing the automotive industry as
planning to hold production to
prewar levels and of being fearful
of over-abundance.

scrapped
upwards of

The average age of cars

,

ment?"

try?"
established

the

under
Act

Settlement

Contract

1944 have been well tested,

mount

tinue

Navy Department co¬
operation in working out termina¬
tion
regulations was excellent.
Between V-E Day and V-J Hay

procedures
and many

wo'Vk

the

are

still

ahead

statement

of

of

us

that

the

do its end of the job by

Year's

if

contractors

get

the

to

and

nies

to

workers

"What

Inter¬

ducted

the

materials

Governmental

regulatory

road
oo-

must

of

car

edge

^

to

Car Pro¬

Wartime

Been

Demands

Met?"

market

surveys

independently

by

con¬

indi¬

indicate an

bile

of the industry, I don't see

.

production, it is certain that all
companies will manufacture cars
at a loss during the early months
of production.
You may be sure,
believe

and

I

feel

sure,

over

that

will

panies

tance

and

buses.

Based

on

production plans, this
probably represents about three
years' output, but during those

Bowles

must

automobile com¬

spread

early losses
<

demands
raise
such public impor¬

wage

that it

is hard to see how

be settled on any basis
other than determination of public
interest.
The people who have
most at stake are the buyers of
automobiles—the
public
as
a
whole.
Certainly, no one expects
they

can

increase in our indusjtry to
Buyers of all manu¬
products
would
ulti¬
mately be affected and the rela¬
tionship between industr^1 and
(Continued on page 1482) *■
a

trucks

Mr.

long period.

a

stop there.

company

for any automo¬
absorb further

increases without reflecting
it in their prices.
Because of the
magnitude of the reconversion
problem of each company and the
time it will 'take to reach volume

000,000 passenger cars—exclusive
of

to

company

wage

immediate demand for about 18,-

j

my

how it is possible

Union

vidual manufacturers

materials

of

employed
advance

Will Happen

Several

fere with Production?"

great 30b in

in

duction and Employment When

Pent-up

a

are

weeks

be passed during

Have

done

Un¬

shutdowns.

but based on

questions of

involved.

have

force

the specific; facts,
general knowl¬

of

knowledge

strike situation.

where hundreds of subcontractors

Except for tin and textiles, no
shortages or abnormal
difficulties have appeared.
Mr.
Kirug and the War Production

to

January or
February and new peaks set by
April or May, depending upon the

Some compa¬

Materials Shortages

continue

should

and

rapidly unless strikes con¬

six

can

may

"Will

f

dustry prewar employment levels

have
difficulty in
meeting his deadline, particularly
are

\

assembly,
employment
should
advance rapidly. Automotive in¬

Navy
New
their

claims in by October is hearten¬
ing and his effort has met with
favorable reaction.

/

be manufactured from two months

paper

Adrniral Mer-

agencies.

war

ring's

volumes

'

-

employment is less than predicted
and need not approach govern¬
ment estimates.
Because parts for
sub-assemblies on which 90% of

got a real workout
bugs were eliminated.

Tremendous

rise

to

in

uub,

and

War

'

Employment has already started

.

a

.

Procedures

>

established

In the past few days, there has
during the war is
been a marked change in the type
10 V2 years as against an average
of questions we are being asked.
of 6V2 years in 1925.
Mileage of
Leading the list is this one:
scrapped cars runs more than
81,000 against 21,750 20 years ago.
JI"What is the Industry Going to
fication.
Do
About
the
Union's
; These factors, together with lower
30%
We know that Robert W. Hinck- i prices, have reduced cost per mile
Wage Increase Ultimatum?"
ley Office of Contract Settlement performed by 80%.
Each mile in
Now, my honest answer is, I
Director;
General
Hauseman, 1925 cost 4.4c. compared to .9c. at
don't know, and I don't expect to
Chief
of
Army's Readjustment present, or, in 1925, 23 miles were
know because the answer is one
Division, and Admiral Merring, obtained for each $1 of retail
for each company individually;
I
Chief of Navy Industrial Read¬ price, compared to 112 miles for
am
inclined to believe that gen¬
justment Branch, must feel as cars scrapped during the war
erally they recognize "the farfive times as much!
happy about this as we do.
reaching
consequences
of
the
"What Is the Industry's Expe¬ "What is the Employment Out¬ answer to this question inflationwise
and
otherwise.
Without
look in the Automotive Indus¬
rience
with
Contract
Settle¬

clearing

'

reopened. It has
presented by industry en¬
gineers within the past few days
and has promised that where tin
is
definitely needed to Permit
production, it prob&bly will be
made available on appeal.
Tin is
an essential in body solder, some
types of pistons, bearings and
some other applications.
My own
eign

Bowles

Board

'

production

in Clearing Government-Owned

the

tin is still
it will not

for

There

"Are

of

tarian

are

500,000 before the end
of the year is a fair estimate.
By
February, production could be at
prewar levels and by late spring
at a new all-time peak annual
rate of 6,000,000 units, which is
60% greater than 1940 and 33%
greater than 1929, the industry's
biggest year.

whether they are to follow those

Socialist-Communist-Auihori-

pro¬
still scarce and

should be available for sale.

is

to continue in the direc¬

the freedom

\

presented to
United States

of the
Employment

Full

whether their

who

people's money ad¬
the highest standards of
They should encourage

to

basic

the

They

handle other
here

proposed in this bill,
non-Socialist economists

of

operation of the system of private
enterprise.
They should protect

and

directions, rather
national planning of

more

the

the weak from the strong and give
careful consideration to ways to

reliance

is in these

post-war

duction of

can

private enterprise.
They should
provide the nation with currency
and fiscal systems in which the
people have confidence and which
facilitate

enter-$|

tooling

strikes, new cars
reaching
dealers
hands in October and by Decem¬
ber a very considerable number

some

and to encourage private enter¬
prise and private capitalism, they
should give more attention to what

makes

lack

bad thing.

a

for

says

start

Except

and executed in times of unusual

government of¬

our

to

They should do other things of
a
similar
nature.
Some
public
works, if they are needed and if
they can be properly conceived

be helpful and at

time actually preserve
strengthen private enterprise
a healthy
economy.

brief, if
really

mat tnere

saving and that "over-sav¬

ing" is

alter¬

and foster
.

attach

may

dence, and that there

same

ficials

living,

a

distinct limits to the penalties

are

not involve

Certain

Come

spots for several months.

some

should

of

"full"

tion would be the

in

may

will

this will interfere with

already

explicit responsibility ducers were
planning to start
employment, and for production within the next few
unemployment, in this country. weeks. All but one or two models
jricauiiiduiy, uie uesi, /\uiiiirusuaPresumably, the best Administra- j could, be in production in October,
for

needed

production.
Both are in
position to step up output nearly
as
rapidly as in prewar years,

The
have

.

items

be
cases, attainment

faster.

a

non¬

government
employment.
Federal
government
will

companies

but

peak

producion

much

started

ety.
If this bill should become
law, the probable effect would be
to discourage rather than encour¬
age private enterprise and to de¬

assumed

until

year."

Its

careful critics regard this program

withheld

was

this

as

crease

as

for¬

carried

be

without
interfering
with
production, but official per¬
mission to go ahead on almost all
of the significant and important
phases of prereconversion activi¬

for much less, not more, freedom
from
the
State.
Indeed,; some

cannot

authorized

be

could

ward

freedoms

,

it

war

wish, except freedom from

you

work

soon

as

initial

duction levels

version

promises freedom from

want—as

worry,
as

production

advocated that essential prerecon-

country.
"The slave state,"
says the British economist Hayek,
"always starts out as a welfare
It

some

of

"The automobile industry early

this

state.

slower in

lems said:

who wish

to those

while

Committee) "after pointing
out
government's procrastination in
dealing with reconversion prob¬

"Welfare

poses.
And the true nqture of
the "Welfare State" is a matter of
concern

issued just

com¬

has
resulted
in
their
tacking the -full job. As a result,
panies

before V-J Day the Senate Mead
Committee (formerly the Truman

State," a fact adequately demon¬
strated by the declaration of pur¬

grave

pleted by most automobile

In its annual report

faith of the sponsors of this bill
lies

Arrival of V-J Day before par¬
tial reconversion had been com¬

and

virtues

1452)

page

cepted industry recommendations
which I described to you just a

free, competitive, private enter¬
prise, the program in its essence
is a monument to a striking lack

Apparently
and WPB

scarce

be freed for civilian use until for¬

wage

factured

'

1945

Thursday, September 27,

THE COMMERCIAL & FINANCIAL CHRONICLE

1482
i1

Reconversion of Automobile

Industry at Crossroads
(Continued from page 1481)
agricultural
become

a

would

again

issue.

I be-

prices

national

managements

automotive

lieve

economy

must be determined and

public interest in arriving at their
decision. .Without regard to the
current issue—what is the indus¬

this part

played in a responsible
we are to continue our

undertake

ascertain

to

It was best
expressed by a pioneer who said
that $50 a day is not too high if it
is earned, but $1 a day is too high
try's wage attitude?

A sound wage

if it is not earned.

policy must relate wages primar¬
ily to production.
This industry
the first

was

of any consequence

past record of economic progress.
Misconstruction of our industry's
bring this about does
not aid the attainment of this ob¬

efforts

in which
a $5 day minimum factory wage
was
adopted.
It pioneered in
adopting the 8-hour day and in
modernization

the

factory

of

buildings and the use of labor
lightening devices.
An industry
executive
recently pointed out
that, whereas after World War I,
there was not a single worker in
the automobile plants of Detroit,

South Bend or Kenosha
car out of his
earnings, nearly every automobile

Toledo,
■V\':

who could buy a

■ihf!

worker

is

a

now owns

his

own car

and

of a

prospective purchaser

"Why Don't the

Automobile Industry,

the

or

Any Automobile Company, Trying to Break the Unions?"

v
•

If
labor

harmonious
-

and

management

workable

relationships

to develop on a permanently
effective basis, the right answer

are

to

this

question

rately given

and

recommended
to
the
Investigating Com¬
mittee
a
strengthened national
labor policy comprehending these
points:
"
industry

carefully
considered
policy that would retain or re¬
store to management the ability
(2) Protection
of
workers
coercion by unions and

from

coercion;
to unions in cases

A reversal of the ten¬
dency toward centralization of
labor policy administration in
Washington;
(5) Decentralization of indus¬
trial unions and designation for
(4)

as production and prices.
To
together to bargain collec¬
tively, the automobile companies
would have to delegate to some

such

working

and

spiring to control production and
prices.
This is true in England
and

it is

true in our coal

indus¬

on an

indus¬

There is no effort
being made by the automotive in¬
dustry to destroy the unions.
On

It

l|st spring the entire

ihdustry auth6rized

me

to

make

this statement to the Senate War

continuation of the
pattern of managementunion
disagreements
which
would

0

?

established

t

ments

bargaining is an
process ip this in¬

dustry and individual

manage-

ment-labor

more

strikes

CIO and UAW have

conscientiously

t

:Si.'

■

.

organized."

asked.

I have checked within the
past
few

days

;

WMC

The second part of the question

with the heads of the
automobile companies and I found

f

:■

is;

all of them sure that unions are
here to stay and that
they have a

the unions?"

potentially

permanent




construc¬

"Why

companies

don't
get

the

automobile

together

to

fight

There not only is no desire on
the part of automobile companies

Chairman

McNutt's

far-

sighted decentralized approach to
these
problems and under the
administration

sound

of

Edward

Doing

the banking monopoly.

up

To
their usefulness in¬

did not destroy the banks.

so

the contrary,

creased.

management

as

lay out the tasks.
Manage¬
ment's obligation to labor is si-,
who

multaneously

.

When, at the end of the Nine¬
Century,
the
American
were
confronted with a
vast
network of strangling mo¬
nopolies in the fields of railway
transportation, meat-packing, food
processing, steel-making and oilrefining, the measures which the
people
took
to
break
those
strangle-holds
did
not
destroy

possible wages;

highest

the

pay

has

pro¬

at low prices and

cars

paid

high wages because its manage¬
ment had and made effective the
concept of machines and method^
designed to produce high volume
in relation to the expenditure .of

teenth

human
work

affected

the

On

industries.

the

contrary, those measures created
the

ground-rules

necessary

that

enable those industries to render

public service than they
been
able
to
supply

greater
had

ever

without those rules.

editorial from yes¬
terday's Detroit "Free Press":
"When

they (the union lead¬

ers) publicly proclaim that they
will block the return of national

prosperity unless they get what
they
want
they
are
putting
themselves in the same position
as Big Business of another gen¬
eration
when
'the-public-bedamned'

the

was

of

order

the

damned

be

ticians
The

ability to manage men and mate¬
rials effectively.
,
;
„

Management's discharge of its
obligation to workers is being
thwarted by-a widespread and

also from the
"The

productivity.
Pro¬
of
the
things
people want is the source of
wages. Labor and customers must
join with management in seeking
increased productivity if the. job
and wage goals of America are .to

from

tected

from

as

And

I

basis

helpfulness can expand
dynamic economy.
*
(2) Industry-wide agreement
on wages and hours inevitably
leads to
industry-wide agrees
ments on prices and production'.

our
46

Politi¬
the

Big

prosperity is at

tricks."

ment's

Manage¬

Obligation

Primary

to

The

automotive

lieves its

industry

be¬

primary obligation is to

the public interest ahead of
everything else.
The public in¬
put

terest

national

or

the public
automobiles.

course,

buyer

is

the

selfish

this

for, of

interest

interest.
You might
enlightenment,

industry's

of

is

the

One measurement of the etxent

management meets its
obligation is the number of cus¬
its

values

attract.

With¬

there can be no
jobs. Management alone doesn't
make jobs, it must have the co¬
operation of customers, workers
out

customers,

and

the
are

These

owners.

groups

and in America

public

they

also the government.

industry's postwar ability
to produce cars at a price that
customers can pay is in jeopardy.
Government

union

and

interfer¬

reduced management's

have

step

employee

It I;

sound and become tradi¬
in this country.

tional

word, un-American.
step would be to
in
this
nation
the
growth of that very evil against
which this nation has just waged
It

is, in

a

this

take

encourage

the

destructive

most

all

in

war

Xj.

history.

Weinberg Resumes
Duties at Newborg
served

as

§

C.

Weinberg, who
Lientenant Commander

J.

Frank

Navy, has resumed his

in the

dii*

partner of Newborg & Co*,
30 Broad Street, New York City,
members of the New York Stock

ties

as

Exchange.

■

.

rVi

are

Our

ence

-

contrary
to
every
standard of
social-economic good that has beeq

which

tomers

first

fatal

a

employer

conspiracy against the consumer;
That is not only illegal in this

To

Public?"

the

be

an

proven

Automotive

is

"What

to

would

toward

country, it is morally wrong.

am

tions:

call

on

mutual
pro¬

going to ask and
attempt to answer two basic ques¬
now

made to develop' a
which cooperation and

being

are

It

card

effort is being made

by the industry or any automo?
bile company to destroy unions.
On the contrary, sincere efforts

are

"Shuffling the cards in the
Department of Labor is not the
answer.
The people are also
of

nowhere

May I emphasize, in conclusion,

stskc

tired

is

that:

Business Politician.
"Our national

This

true than in the automotive

industry.

has

be

Union

the

well

as

output

realized.

be

more

editorial:

should

the

wages.

upon

ductive

Leaders."

same

of

Wages come
from production and productiori
results
from
customer demand.
Customer demand depends upon
need and cost.
Cost depends pri-j
of

source

can

statements

worker

misconception

growing

Poli¬

Business,

by

Union

or

following

cian

public

liked the idea that it

responsibility and

management's

(1) No

American

"The

elsewhere, but.

they did produce more because o

day.
never

didn't

Workers

energy.

harder than

marily

To quote an

the.

produce

to

greatest quantity of quality goods
that customers will buy and .to

people

ability to manage. Restrictions on
the freedom to organize the use

New York Stock

Exchange

Weekly Firm Changes

j

Exchange
following firm

The New York Stock
has announced the

changes:

p
Crowley will retire

J.

William

partnership in Hirshon :&
New York City, effective
Li

from

of tools by workers are

Co.,

their

Sept. 29.

cars

restricting
industry's ability to produce

customers

can

afford to buy.

The
and

manufacture, distribution
use
of motor vehicles pro¬

vided

one

before

the

job out of eyery seven
war; this was because
managements organ¬

W. Eppink retired

Harold

from

partnership in George D. B. Bonbright & Co., Rochester N. Y., on
Sept. 13.

automotive

ized

mass

production
for
any

for
the Bowen to Represent
class or Smith Barney in Albany

masses,

not

classes.

^

We believe this is in the

public interest.
ers,

Y.—Smith, Bar¬
& Co., members of the New

owners—the

work¬
public and the

Government—fail

to

realize

ney
York

the

how

of

their Albany repr^.
with offices at 90 State

as

sentative

being

announcC
Edmund ,J.

Exchange,

Stock

appointment

Bowen

organize, to man¬
crippled.
The second questions is: „
ability to

is

N.

ALBANY,

We know it can¬

not continue if customers,

age,

how de¬

known

workers

duced

this

has explained

"labor" is used to designate
who perform the
tasks laid out for them, not the
workers

the-

The automotive industry

rector.
one

the past

been decentralized.
early days we had to break

our

Cushman, Detroit Area WMC Di¬
No

ob¬

have

this question, the

In answering
term

In

trally managed economy for our

present competitive system;
"(3) Adoption of the recom¬
mended national labor policy to
establish
cooperative
labor-

tre¬

Primary

Obligation to Labor?"

and they have

the direct substitution of a cen¬

powered to "determine and put
into effect," production and other
non-collective
bargaining
pro¬

units

economic

tained excessive power in

and

dismanagement relationships on a
] charging their obligations under grams on an industry-wide basis.
voluntary basis that would per¬
What reason is there to believe
7
existing agreements. I know of
petuate a free and competitive
"that
industry-wide
bargaining
no
industrial system."
policy-making
individual,1
would stop with wages, hours and
;
company or organization in the
With responsibility for collec¬
working conditions when "a voice
j
automotive industry that optive bargaining equally decentral¬
in
management"
is already
a
poses the organization of rankmajor union objective?
As long ized, it was anticipated that indi¬
and-file employees."
vidual managements dealing with
as unions are organized on an in¬
*
During the Committee's ques¬ dustry-wide basis, granting them union representatives responsible
tioning, the Chairman, Senator this demand would mean that solely to the workers of the par¬
Mead, asked, me, "Are you per¬
through the union the manage¬ ticular company involved could
sonally antagonistic or are you
and would work out effective co¬
ments of all companies in an in¬
personally in favor of the setting
dustry would be interlocked, a operative relationships of mutual
up of these unions in these plants?
thing Americans have opposed in interest to the workers, the com¬
How do you feel about it per¬
pany and the public.
any other form.
sonally?"
Automotive companies are op¬
National
and industry
unions
My answer was, "Senator, I
would require all their present
don't believe that these plants in posed to cartelization on any basis
and are for a competitive eco¬ facilities to adequately play their
this
industry, operating on as nomic
system based on individual part
in
servicing
autonomous
large a scope as they do and on
responsibility and voluntary co¬ member unions and developing
as large a
scale, could operate ef¬
operation under economic policies needed cooperation on programs
fectively and efficiently without
fixed
by government.
Union- that serve the public interest.
their workers being organized."
cooperation
must Their services would supply sepa¬
He then said, "So you favor or¬ management
come quickly, but not at the sacri¬
rate member unions the economic
ganization?"
''#fice of these fundamentals upon background and advisory assist¬
I replied, "Yes, I have tried to
which our past is based and our ance needed for intelligent and
make that clear to the best of
my
future depends.
responsible collective bargaining.
ability in these hearings."
We are confronted with the per¬
How can union responsibility at
This week I was told by one plexing situation where central¬
contract
levels
develop
when
LOf the leading officials of a lead¬ ized unions are growing vastly
union representatives of workers
ing company that, "If we did not more powerful than decentralized
covered by a contract are not as
have
unions
in
our
plants, it employers. According to Interna¬ fully responsible as management
would be necessary for us to or¬ tional
News
Service,
Walter for the contract and performance
ganize them.
In fact, before the Reuther last
Saturday said the under.it? On the proposed basis,
present unions were even dreamed planned union blockade to en¬
I am convinced that invaluable
of by their organizers, we were in force its, demand would "wreck
voluntary cooperative labor man¬
the. process of helping employees the business of any industry af¬
agement relationships on an in¬
to
set
up
Under those cir-p
organizations in our fected by it."
dustry and national basis can be
plants to bargain with us collec¬ cumstances, it is easy to under¬
developed. In fact, such coopera¬
tively. We can't operate in mass stand why this question about the
tion did develop in Detroit on
production without workers being companies
getting
together - is manpower problems as a result of
are

"Other

-and further reduc¬
productivity;
"(2) Achievement
of union
objectives, either through the
intermediate step of industry¬
wide collective bargaining or in

government-manage¬
representatives
em¬

the

growing eco¬
nomic, political and social power
of industrial unions is in accord
with
American
public
policy.

stoppages

advocated industry councils com¬

.-"Collective

mean

of

still

and

is Management's

"What

with

Decentralization
mendous

tions in

demands.

of

can

can bargain
centralized in¬
dustrial unions without losing the
individual freedom and responsi¬
bility on which competitive enter¬
prise is based.

centralized industry

collectively

"(1) A

signed to bring about industry¬
wide bargaining.
It is one of the

posed

only three pos¬
union-management
take."

past

de¬

Investigating Committee when it

in industry and
organizations.

are

courses

relations

organized on
an
industry-wide basis and its
tactics at present are, according

held hearings in Detroit:

"there

sible

The auto union is

For years

union

the industry's viewpoint

was

that

concentra¬

undue

power

national

cartelization.

to its own official statements,

of

tion

organized unions jointly con¬

the

from

unions

re¬

and

this

repre¬

senting
the employees
of a
single employer;
(6) Protection
of
separate

con¬

has

Elsewhere

purposes

exclusively

unions

of

on

sulted in organized employers

bargaining

collective

organization the power

hours

of penalties
of irresponsi¬

bility;

get

individually

Application

(3)

industry-wide or national basis,
is a first step in getting together
in the same way on other things—

them

,

protection of unions and man¬
agement
from
Governmental

on

ditions.

A

(1)

wages and hours, to
deal with unions organized on an

wages,

War

Senate

Industry-wide collective bargain¬
ing, has proved a big step in

try-wide basis.

the contrary,

develop a formula un¬
peaceful
and pro¬
ductive labor-management rela¬
tions would become possible, our

gether on collective bargaining?"
Experience abroad and at home
demonstrates clearly that getting

bind

objective effort

sincerely

a

which

apparently simple question

or

the

of each

help

der

actually has two parts.
Its first part is, "Why don't au¬
tomobile manufacturers get
to¬

together

and

responsibilities

to manage;

widely under¬

other

any

In
to

Demands?"
"This

manage¬

be recognized.

can

Fight
Unions'

the

try and elsewhere in this country.

be

I

ansWering

and

Unions

the

and

accepted

be

can

separate

Automobile Man¬

accu¬

must

believe I can be more
definite and positive and certain
in answering this question than in
stood.

ment

ufacturers Get Together to

to

"Is

•

question in this field
that is asked today is:

group

new car.

;

;

third

A

operating policy on an
acceptance of the fact that work¬
ers are customers.
It was, there¬
the first industry

to

jective.

to base its

fore,

if

manner

of unions

interests

play in our economy;
that as a new economic force, in
America, their proper part in the
tive part to

the

will

"to fight the unions," but there is
positive belief that pur economic
progress will be ended and the
attainment of new job and wage
levels blocked if we fail to de¬
velop a basis on which collective
bargaining can work, the mutual

-*!

Street.
LL■
.

.

.

•.

/\..yrv:;
*■

-w

.

.

Lo.

•: r
."

.

"-V'V

?■

'•

'

nyt.fr

"fx

•

I

: * ;•*»•

[Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

162

President's

The Foreign

the

Trade Outlook

accounts.

ments

(Continued from page 1450)
to

that

permanent change
took place in our basic free en¬
terprise methods of doing business
with foreign countries. Top policy
see

no

officials of the Government gave
from time to time that

assurance

I wartime controls and regulations
would be relaxed at the earliest

I feasible moment.

We note with

these pledges of
Government
have
already

satisfaction
the

that

been fulfilled in many
we

but

cases,

must continue alert to see that

reconversion includes

laxation

prompt re¬

elimination

and

of

re¬

study which

say

This

relations

third objective to which we

have

devoted

war

evident need for

very

discussion

much

throughout the

the
expanded
is

years
an

post-war foreign trade, linked as
it is to our hopes for prosperity
and

high level of employment.
The time has no$ come. The job
a

is here to

do, and

to-do it.

tive

free

I submit that the initia¬

in

from

we are now

foreign trade must come

business

Government,

rather

than

from

is
much careful thinking and plenty
and ' that

,

there

of hard work to-be done if we are

to make the most of

nities.

our opportu¬
policies, I believe, can

Our

be formulated with the

assurance

that

cooperation will be forth.ccming from the Government, but
should

we

ment

to

look

not

to

Govern¬

the

set

plan or provide
the leadership for the greater for¬
eign trade relationships that can

be

attained.

traders

must

Experienced foreign
take this responsi¬

bility.

dollar
when

fli One

decidedly

de¬

velopment came about during the
war
period. Looking over these
very recent years, we note that
foreign trade has achieved a na¬
tional and a world status as es¬
sential to sound economic prog-

Jress. Today's public recognition

of the importance of foreign trade
is* most heartening. It has made
itself strongly felt in Congress,

.

arid, although it
what

may

seem some¬

to do so, it
truly said that the nation

be

has

come

turity has

of age.

With this ma¬
responsibility and

come

determination to take

tive

place

world.

exist.

We

of

leadership
Reciprocal

The

Agreements
last Spring

Act

by

was

large

rela¬

our

in the
Trade

renewed

majorities

be

into

put

-Woods

become

apparent as
negotiated and
effect.
The
Bretton
are

international

measures were

fi

na n c

i

a

1

likewise approved

rby large Congressional majorities.
The San Francisco Charter of the

United

Nations

has

upon

favorably.

haps

the

been

These

acted

are

per¬

outstanding ^examples

which demonstrate that the United

States will pursue a course of in¬
ternational cooperation and that

foreign

trade

will

receive

the

/^cognition and encouragement it
should

have.

This

new

emphasis

international commercial
^relations is certainly most weloil

our

come.

.

-

The desired expansion
achieved by words

porter.

plant

Manufacturers

capacity

Lend-Lease

will
and

have

orders

with

told

new

of

me

they handled

during the war, and insisted that
they therefore are in a position
to continue to do export business.
While this was a healthy indica¬

tion

of

interest

in

foreign

busi¬

ness, the complete lack of appre¬
ciation of what constitutes export

selling and distribution was ap¬
palling.
No thought of market
analysis, adaption of the product
for the market, terms of
sale, for¬
eign exchange, shipping or other
important factors seemed to be in
their

minds.

There

will

be

increasing

an

from the

tive

of

owners

capacity

is

and

now

demand

idle produc¬
labor to

from

and

consider

the foreign markets as
ready solution to their problems
to

insist

that

in

some

way,

possibly by Government purchase
and distribution,
their products
be sent abroad, irrespective of the
result of such action

on

our

econ¬

omy or that of other nations.

terest

in

bined

In¬

with

exports

must5 be

com¬

experience.
Fortu¬
nately, there exists both here in
this

and

throughout the
the required experience

area

country

and know-how to make

of

foreign

success

a

trade.

Much is said about dollar funds
created

by

purchases
abroad, owned by foreign gov¬
ernments or foreign nationals and
available

our

for

the

dency to

purchase

There is

become

of
ten¬

a

over-optimistic
as the $4,000,-

when such amounts

000,000 available to Latin America
considered.
that

We

the

must

Latin

bear

in

American

countries

will, in all probability,
judiciously to de¬
velop and build up their econo¬
mies along the lines which they
use

their funds

think

most

are

selling

job

there

effort

more

anticipate.
merly
tinue

desirable.

than

occupied
to

for

dollars

essential

severe

pay

■

trade.

The Tariff Commission

cently
issued a
of imports
and

re¬

detailed study
their probable

effects on domestic
 production,


a

overwhelm¬

While

possessed

amounts
both

of

not

surplus

and

here

is

much

of

abroad.

commercially

usable, there remain vast quanti¬
ties, covering literally millions of
items of American-made
be

goods, to
The method and

disposed of.

effect of such disposal can easily
determine for years to come the
course

of

export sales in many
will
be
little

our

markets.

There

chance to sell products of current

manufacture

in

a

market

where

surplus equal to many years' de¬
mand is disposed of or overhangs
the market. There appears to be
little integration between the dis¬
posal'of surplus located abroad

of

channeled into foreign markets to
the detriment of the
domestic

There is a correspond¬
ing fear that the new ciyjjian
production will be almost totally
absorbed
by domestic demands,
that foreign customers will
neglected to our long-range
disadvantage. The best thinking
thus far on this problem is to
leave decisions to competent in¬
and

be

a

who

manner

will

in

to

it

see

balance is struck and main¬

foreign markets. It is
believed that this approach would
be more effective than any effort
to

establish

national

overall

an

policy of export quotas. Experi¬
enced export executives can offer
highly useful advice within their
own
companies.
Foreign
trade
potentialties will be attained far
more rapidly if private enterprise,
through the exercise of sound
business
judgment,
is
allowed
freedom to

move

ahead.

toward

question
of the
is extremely im¬
Negotiations
looking
solution

favorable

some

going on. Without for¬
getting that there is just so much

are

now

end.

an

which

madq.

we

can

What

meet

the

conduct

trary

demands

be certain

will

be

be done in this
large part of the
answer might be to cancel all the
debts still existing as a result of
the first world war, and to refrain
from demanding dollar payments
in Lend-Lease settlements. At the

situation?

same

avoid

time,

can

A

it

would

be

misundertanding

well

of

to

the

needs, and appropriate ad¬
justments and changes must be
made.

of the element of

Because

cannot be stated
flatly that central trade control
agencies cannot be established.
However, this procedure should
not be actively encouraged by our
Government.
The operation of a
foreign purchasing agency cuts
off-the normal trade relationship

it

sovereignty,

of exporter,

agent, distributor and
importer.
We must study very
seriously any procedure whereby
agencies of the United States Gov¬
ernment are used to carry out the
buying
for
foreign
purchasing
missions.
It is altogether likely
that

should call for the
continuance of this system.

dis¬

we

A number of

effected

by

the other has still to be worked

on

at

a

a

an

its

Other

There

Problems

also

problems, and
acute ones, in international com¬
munications, in aviation, in petro¬
leum, in restoring Far East trade,
in developing a sound policy on
the Middle
East, and in many
are

fields

other

sound and

too

arbi¬

We must arrive
sane

basis for the

clearing away of the sterling area
problem, guided by the goal of
freer and expanding commerce.
Reparations Complicated
The complications arising out of
reparations, war losses and their
tax treatment are almost

endless.

Such groups as

the Foreign Prop¬
erty Holders Protective Commit¬
tee and the Tax Committee of the

Council

are

giving these matters
Some of the ma¬

intensive study.

jor items of concern cover access
by American firms to their prop¬
erties abroad; restoration of prop¬
erties

to

their

owners

for

man¬

assessment of damages
other
determinations;
the

agement;
and

provision of adequate and accept¬

The

direct

of

business

small

As

will

concern

to

must

for¬

be

of these problems as
with in three days

dealt

Wash¬

of

19 issued its re¬

port showing cotton consumed in
the United States, cotton on hand,
and

active cotton spindles
of August.
:

month
In

month

the

in. the
,

.

of August, 1945,
amounted
to

consumed

cotton

of lint and 84,255
linters, as compared with
of lint and 102,732
bales of linters in July and 841,540 bales of lint and 126,203 bales
of linters in August, 1944.
In the 12 months ending July
739,811

bales

bales of

673,087

bales

31

cotton
consumption was 9,575,829 bales of lint and 1,481,063
bales of linters, which compares

with

9,943,370 bales of lint and
1,364,794 bales of linters in the
corresponding period a year ago.
There were 1,833,487 bales of
lint and 231,745 bales of linters
on hand
in consuming establish¬
ments
on
Aug. 31, 1945, which
compares with 1,962,602 bales of
lint and 245,998 bales of linters
on
July 31, 1945, and 1,709,924
bales of lint and 269,999 bales of
linters on Aug. 31, 1944.
A v,
On hand in public storage

and

at

compresses on Aug. 31, 1945,
there were 7,839,009 bales of lint
and 28,465 bales

of linters, which
with 8,372,539 bales of
lint and 26,980 bales of linters on
July 31 and 7,970,446 bales of
lint and 42,893 bales of linters onj
compares

Aug. 31, 1944.
There

22,170,180
cotton!
during
July,
which compares with 22,030,280
cotton
spindles
active
during
July, 1945, and with 22,240,676
active cotton spindles during Au¬
gust, 1944.
<
}
were

spindles

active

News Agency in State Dept*
Office of International In-*

The

fdlmation

Cultural

and

Affairs

has been created within the State

cy to make known to the world's
peoples the United States view?
point. Tn establishing the new!
agency, which will begin opera?
tions Jan. 1, Secretary of State
James F. Byrnes gave the follow-*;
ing as its announced objectives,

according to the Associated Press
report from Washington, Sept. 17*

the

uled

Thirty-Second
in

meet

to

Nov. 12, 13

York

New

on

di*

and

polof action iit

the taking

icy

and

the

field

international

of

infor*

mation and cultural affairs.

,

)

*

programs
information
3. The

The

cverstressed.

of

attendance

delegation

of

foreign

Chicago area will
great deal to the
of the Convention,
Last
a

than a hundred of you
attended, and we hope that that
fine record will be bettered this
year more

year.

people.
of

,{

interna*

tional
interchanges of persons,
knowledge and skills with otheri
countries.

,

of

grams and activities
eral agencies in the

j

the ; pro*

of other Fed-!

international!

interchanges of persons, knowl*
edge
and
skills with over-all
United States foreign policy.
f
Establishment

traders from the
contribute

among

furtherance

4. Go-ordination

of the Conven¬
tion; coming as it does just when
we are entering a hopeful new era
of
peacetime trade, cannot be

large

of policies and!
promoting freedom o$

and 14.

The importance

success

co-ordination

1. The

rection of the formulation of

the program

in

included

be

National
Foreign Trade Convention, sched¬

a

Bureau

Sept.

on

2. Development

many

be

can

of

Census

ington

mulated.

International

Affairs

Cultural

Office of

of the

and!

Information
was

announced!

simultaneously with the swearingin

of

William

Benton, of South-

port, Conn., as Assistant Secretary1;
of State in charge of cultural and

public relations.
Great Opportunity Ahead

hardly seem
importing nation

trade in

fashion.

Aug. Cotton Consumption

Department as a permanent agen-

out.

would

It

continue

insufficient to

time

for

that

to

that
the
Export-Import Bank's
$3,500,000,000 lending capacity is

.

and in the

executives

responsible

advisable for

to accept goods, to be
paid for with funds already avail¬
able or obtained through loans.
It is already apparent, however,

quate treatment.
The system of bulk purchasing
and foreign buying missions must
be examined in the light Of peace¬

tained between sales in the home

dividual
a

that exchange now that the hard
necessities of war have come to

was

,

foreign traders. There is the car¬
tel question, the need for modern¬
ization of the Foreign Service of
the United States, and the prob¬
lem of insurance. Helpful policies

help,

for imported materials.

compensation
when
war
damage has occurred; the tax
treatment of war loss recoveries
on a basis which will not penalize
those
who
have
already taken
write-offs for war losses. Progress
has been made in establishing our
position and every possible step
is being taken to the end that the
property rights and interests of
Americans receive fair and ade¬

economy.

dollar exchange available, we can
seek a reasonable re-allocation of

some

able

changes have been
the development of
and that located in the United synthetic
products
under
the
States but available for export. stress of wartime necessity. Fur¬
Two different governmental agen¬ thermore,
there is the related
cies are involved.
There should question
of stockpiling of im¬
be an integration of the whole ported strategic materials. Large
surplus disposal operation as it scale production in this country
affects
goods
which will ulti¬ of goods formerly imported does
mately find use abroad. While it reduce the possibility of balancing
is a most difficult and complex our trade through sufficient im¬
problem, every effort must be ports,
while huge Government
made to prevent, as far as pos¬ stockpiles might well have an ad¬
verse effect on the price struc¬
sible, the hindrance to trade and
Considerations of security
employment which surplus dis¬ ture.
enter into the picture. This entire
posal inherently holds.
question of stockpiling on the one
There
is
the
fear
that
new
hand and production of synthetics
peacetime
production
will
be

to rebuild
UNRRA has

accompanied by Mr. Crow¬
ley's offer of a method by which
former recipient countries could

exports, have established import
departments within their own or¬
ganizations. This type of progres¬
sive action
presents great pos¬
sibilities for a more stable foreign

itself

finds

ment

portant.

The termination of Lend-Lease

imports.
Necessary imports
present both a problem and ao
opportunity to which much con¬
structive
thought is being de¬
voted. Our tariff policies already
have been revised and strength¬
ened. Some farsighted executives,
formerly concerned chiefly with

our

ing productive capacity and the
relatively sudden coming of V-EDay and V-J-Day, our Govern¬

con¬

diffi¬

Lend-Lease Settlements

vn

eliminated.

area

the relatively
available to them

be

to

whole

imports

will

is

result of

The

but in the long run those unfor¬
tunate sections must find means to

.

Stress is • rightfully being placed

trade
a

sterling

public thinking which can also be
regarded as sound and helpful.
,

As

for¬

use

their economic life.
been arid

require

There has been another shift in

«

States

perhaps
and

will

areas

encounter

culties and must

limited

will
some

Devastated

the

So

contribute

our foreign trade
well be considered ap¬
propriate.
There should be no
hardship imposed on any friendly
nation of the world, but we are
entitled to settlements by which
discrimination
against United

war

American goods.

mind

will

'warning

Experienced foreign traders
A few shipments do
not make an exporter or an im¬

is

agreements

of foreign
hand, and
may
be in

at

needed.

are

Additional tariff bargaining power
provided, the significance of
which

of

is

talk.

in both the House and the Senate.
Was

which

may very

materials

era

an

expansion

order.
not

that

sense

word

a

not

may

staggering
Warning Given

dollar pay¬
be
expected,

promotion .of

solved

be

can

we

•

presumptuous

cafn

a

scarcities

must

and

fortunate

sale

a

consider, and effectively
operate, our foreign trade rela¬
tions on the "two way" basis that

a

Public Opinion Shifted

business

sale is

no

concerning
Lend-Lease

strategic security and to the

our

problems of foreign exchange and

trade

4 The

sound

a

until the goods are paid for. There
is solid ground for hope that the

throughout the

)

world.

reflects

attitude because

maining Government controls af¬
fecting trade and American com¬
mercial

busi¬
to
de¬

.

of

Although

settlements

aid many

can

who,, attempt
velop import trade. It is safe to
that foreign traders no longer
think just in terms of exports.

nessmen

statement

cancellation

1483|

occasions, we need no subsidy for
foreign trade, either in cash or
in thinking.
What we do need,
and it appears now that we shall
have it, is the opportunity to take
full advantage of the possibilities,
rising to meet the demands of
the future

done

in the

portunity,

past. Given this op¬
American
foreign

will

traders

have successfully

as we

and

face

solve

orderly

of

achievement

the

and

an

world

expanding

trade.
The
is

one

outlook

for

foreign

trade

of great opportunity.

whole world needs goods after

destruction

and

devastation

The
the
of

the
United States have the productive
capacity, know-how, and financial
war.

Fortunately,

we

in

versity of Chicago, succeeds Ar*
chibald

MacLeish.

resources

to

lead

> '
in

the

world

tpde of the coming years.

We

must

plan and operate so that we
merely take advantage of
a
temporary situation but build1
for a lasting and stable basis of
do not

the ^American

problems of the transitional pe¬
riod, and move steadily forward
toward

Mr. Benton, former New York
advertising executive and assis*
tant to the chancellor of the Uni¬
.

other

As I have emphasized on

national

participation in inter¬
commercial

relations.

Certainly, there are problems to
and'

be solved but the future can,

should, be bright if we are willing
to adapt ourselves to the realities
of a changing world, use common'
sense, and exercise fair dealing.
We need be neither Santa Claus
or

Uncle Shylock

unless

our per¬

spective becomes so out of focus
that we forget our rightful placq
in the world.
u

THE COMMERCIAL & FINANCIAL

1484

And

wholeheartedly,

and

telligently

be carried through by
concerned
in
the post-war
will

and

ail

Because it has heard pri¬
enterprise claim the whole

years.
vate

job

its own, the

as.

the

do

it-to

work,

great

public expects
bulk of this

i
.

has already

enterprise

Private

,

,

t

in hous¬
ing families of low income than
is generally acknowledged.
Un¬
done

great deal more

a

FHA program alone more
than one-half of the million and a

der the

half

home

purchasing

owners

single family houses are now pay¬

for them in monthly instal¬
ments of less than $40.
In 1941,
the last reasonably normal build¬
ing

100 own¬

ing year, 40 out of every

paying for their homes
and
meeting all fixed charges
with monthly payments of $30 to
were

ers

$40, while 28 out of every 100
were paying less than $30.
But the public, with its great
need pressing upon it, now wants
private enterprise

to know—does

to attack the whole hous¬
ing field, or only some of the
easier and more quickly profitable
parts thereof?
propose

.

Will

it be enabled by

conditions

within and without the industry
to

in

ahead

steadily

move

the

;

,

unify an assemblage of sepa¬
rate businesses, crafts and profes¬
to

and

generally accepted plan

constructive

agreement; on

purpose and action?
I am convinced private

enter¬

prise can and will do these things,
and so weld its tremendous forces
into

still

one

Who

asks

who

Doe,

John

is

tremendous.

more

He is the

of moderate in¬

man

sized family, aver¬
age eagerness for work and for
leisure.
He generally sees'security
represented
by
continuing
comfort at home.
That John Doe
wants to know whether he can

come, average

place to live, that
he can buy and keep—or a decent
place to rent until he is ready to
buy. He believes in home owner¬
ship, but wants it—at a price and
on
terms he can afford.
Maybe
he wants to be on a farm—maybe
have

in

a

a

decent

small

-

town—perhaps

in

a

suburb—or perhaps in the
heart of a city. Possibly he wants
to go a bit beyond the suburbs
city

and have

little land for

a

or

reaily applied

to it even the means ana metnods

already

we

possess.

of 10 years,
and that in many other parts of
the country, convinces me that
when the building industry says
it is ready and willing and able
My

own experience

a

vege¬

But

sincere.

is

the

with the speed John
ought reasonably

degree and
Doe

and

wants

And it raises this
question to be examined care¬
fully—is private enterprise now
fully ready and fully equipped?
to

expect.

What's Needed for the
I

made

be

can

the

convinced

am

ready

industry
able

and

to

greatly its field of actual
housing production in the prob¬
lem zones, as it has done in all
other zones, if we assume certain
premises.
These are:
(1) That it will strive to be¬
come
one
totally
constructive
force—embracing
men,
money,
methods

materials,

and

serve

common

a

steadily

a

ment * of

manage¬

purpose

growing

whole

the

housing

That it will recognize the
areas of housing as fields
in which to work,
rather than
avoid or neglect them.
(3) That it will study out, make
known, and intelligently press for
(2)

problem

provision of such action and aids
Federal,
State and local
governments as may be legiti¬
mately useful for it to do the job.
(4) That Government responds
properly and adequately, and
(5) That labor will study the
contributions of efficiency it can
make, and labor and management

together, neither claim¬
than its fair share of

ing more
profit.

And right here let me say par¬

enthetically
of

that

a

basic premise

Government's

the

reliance

private initiative to accom¬
plish its allotted task is that man¬
agement is entitled to its fair
share of profit and labor to a fair
—a living wage; but that neither
upon

one

the other should seek

nor

or

expect

advantages to the detri¬
of the consuming public of

ment

which they themselves
a

of subsistence

part.

are

in fact

In its own long-range in¬
private
business
should

terest

If his income is very small, he : avoid adopting any shortsighted
doesn't relish the suggestion that«policy of excess profits to be
private enterprise may have little gained from the present tempoto. offer him except substandard rarily unbalanced supply and de¬

rental

property—or

shell,

new

or

substandard

jerry-build

mand condition of the market.

For

struc¬

He is part of what has been in¬

adequately called the middle mar¬
ket, but it is middle only in that
it lies, between two extremes.
Look

around

our

central

;

areas and you will find
the evidence that John Doe won¬
about

when

private enter¬
prise .claims the low rent housing

must

remember

con¬

The best long-range in¬

terest of the

consumers

of hous¬

ing is the best interest of all
others concerned—be we in man¬

agement, in labor,
ment.

blighted
ders

all

stantly :

tures,

'•

*

or

in govern¬
"

; ;

The problem

areas,

as

-

I vision

them, are in the low-rent market,
in proper shelter for our minority

whether private enterprise means

groups, in low-cost mass market
for home owners, in rehabilita¬
tion of existing houses, in rural

merely private ownership.

home

field

its

as

He

own.

Look at the immense

wonders

inventory

of sound urban housing in grow¬
ing disrepair, and you will realize
there

exists

tunity for

a

large

very

oppor¬

better organized, bet¬
ter operated branch of private in¬
a

dustry in rehabilitation work.
"Look around the fringes of our
cities and you will see in many
areas^ the
ness

the

results

of the

unreadi¬

of private interests to handle

lower ranges

of that market

sufficiently in the past—the brave,
unaided
income

efforts
to

of

Look
you

small

provide their families

some.sort of home.

and-

of

men

around

will

the
find

-

V

rural
an

areas

housing

inventory

below-

our

vaunted

standards—because

we

haven't,

 private enterprise,

as

betterment

and
country
in urban redevelopment,
and in the sphere of veteran aids.

homes,

That is an imposing list.
It
challenges the bbst;,, minds in the

industry.

This -means not only
that part of the industry of whom
we think when the word "builder"
is

mentioned.

It

means

also

Must Be Socialist"

The

Federal

It is generally agreed that un¬
me, the FHA has
progressively successful
It began in depression days

preceded
a

job.
to
ter

promote employment and bet¬
housing and better home fi¬

nancing.
Through 11
organization has met

the
changing
conditions with sound success.
It
has

well

served

in

years

the

the

purposes. Th# Labor
achieved its victory
without
violence, or hate, or
purges, or threat of concentration}
camps or the liquidation of any¬
body or of any class. This surely
is a test of political maturity, re¬
vealing a spirit on both sides of
the
political fence which gives
good hope for the post-war world
of the atomic bomb; particularly
as the one of the only two great
powers which are democracies in

If

it.

for

than

three

the

main

parties—Labor, Liberal, Conserv¬
Parliamen¬

obtained

by proportional repre¬
sentation,
according
to
voting
strength, the Conservatives and

demands

Its

would

Liberals

have

had

ma¬

a

jority in Parliament over Labor.
This anomaly is common in British
elections and is explained mainly
by the difference in the numeri¬
cal size of the parliamentary con¬
stituencies.
In 1924 it gave the

the

lish

speaking nations which are
democracies—Switz¬
Sweden, Norway, Derimark and others; but they are not
great powers.
There are other
great powers in the world, but
they are not democracies in the
political sense, thtmgh they may
become so one day. This partly
erland,

election Labor, with a 48% of the

it happens, under my di¬
rection—it
approaches the tre¬

poll, has secured a majority of
nearly 200 seats. The Brtish pub¬
accept this anomaly as being
satisfactory in Parliamentary prac¬
tice because with a good working
rhajority in Parliament a govern¬

now—as

mendous

job of helping to

meet

vastly greater housing need in

a

time of reconversion and of peace.

The

an

industry

building

How far will

asks:

rightly

the FHA be

of help to the people
in the new period?
you proposing to func¬

agency

to

and

How

us

are

tion?

all

reply:
We intend
authority and respon¬

we

ing field with you insofar as pos¬
We are inventorying now
all of our resources of procedure,
sible.

device

mechanics

and

further

what

mine

aid

deter¬

we

can

authority;

that

within

provide

to

ascertain wether, in order

to

there needs to be
suggested to the Congress amend¬
help most,

additions

the

In

recent

lic

has

ment

to

clear

assume

of

a

crucial

issue

fair chance

the German forces would have
triumphed
in
Africa,
pushed
through the junction with the
Japanese in the lndiSn Ocean and
the totalitarian world would have

confront the Labor government is
not one as between socialism and

capitalism in England, but foreign
indebtedness (caused by the war),
foreign help today and foreign
trade
tomorrow.
A
completely
socialist Britain deprived of for¬
eign trade would be a. starving

triumphed
world gone

Britain.

Yet

Britain,

a

FHA, it

the

to

sent

to me, must pre¬

seems

public

ample,

but

order

divide

to

produce.

in the

under

in view of the job to be done, and

still be true to

our

trust.

headquarters
and
field
staffs have been depleted by war.
We

to

intend

of

strengthen .them
to

where needed

unite

all parts

operation into a single im¬
plement of action—fitting into the
our

unified plan and purpose we are
urging private enterprise to adopt
in the housing field.
Whether it be for rehabilitation

he,

labor, coming to

on

power

a

so¬

down he went.

a

—

a

decisive electoral

through Title I
or provision for better
reasonably priced rental

Control

Three features

perhaps,

accommodations

207,

under

Section

provision to that
homes, or larger

or some new

end,

or

small

ones,

or

for improvement on the
for country homes, we

farms,

or

hope very soon to have a com¬
plete, workable plan being ac¬
presented in a generally
fashion, locally adapt¬

tively

uniform

had

And

freely

available,

and

are

the

again
rigors

and

engaged

successfully

more

to¬

gether^-than ever before! in hieet^
ing, through the channels of pri¬
vate enterprise, the great accumu¬
lation of varied private housing
needs, which today constitutes a

S. Byfield will become
partner in Adolph Lewisohn &
Sons, 61 Broadway, New York
City, members of the New York

Stock

Exchange,

firrn

name

other, and could at any moment
compel the official and his Prime

Oct. 1, and the
changed to
Lewisohn & Co. Mr. Byfield was
a partner in
Byfield & Co., which
on

will

will dissolve

on

an

economically sound

but

practicable basis.
We serve
one
group—but all groups
that make up the public using or
not

any

buyer

way

or

of

reaucracy, more

contributing to the
housing—the

home

tenant, the lenders,

ma¬

terial

suppliers, land developers,
labor, and many others.
Our

duty

tion from all who

wider usefulness.

land.

of

It applies to labor, to mu¬

nicipal
tax

developers

building

authorities
in

departments,
and

charge of
health safeguards.
'V
For

a

solution

to

governing
zoning and

involves

•

.•

all of

these, and calls for efficient, un¬
derstanding application of effort
by all concerned.

are

terested in the home

In

dustry.

its

directly in¬

I

oledge you all the aid the Federal
Housing Administration can-find
room

and

In my

building in¬

performance

give within its authority
keeping with its responsi¬

ter

bility.
For
agency,

than

before.

to

in

It's
It

is

a

is

a

public

service

conceived and operated to

it

ever

"

vast and

kind

•.
_

been

done
A.

,v-

challenging task.
undertaking in

of

initiative

American

enterprise
their

has

"

the

which

FHA

opinion the big job can
together bet¬

be done by all of us

have

-

always

Labor Party has fully ac¬

these* constitutional fea¬
obviously intends to be
guided by them. They are a guar¬
that

Britain

the

strength and grown stronger.

which

socialism

develop will be of a
British brand.
That is to say, it
may

will have little of violence or ex-.t.

tremes; if will be gradualist,

tol¬

erant, compatible with full co¬
operation with nations of a dif¬
ferent economic structure; with
that

nations

may

and

proved

administrative

cepted

antee
*

.

upon

bureaucratic abuse.

tures and

constant

the American public demands ac¬

the

a

The

involves

effective perhaps
in the world.

detail as questions in Par¬
liament
constitute
a
constant
Such

daily check

to each without detriment to the

that

,

than anywhere else

or

duty is to give maximum service
others—and

'

give an account
of their stewardship and could
turn out the government from one
day to another if the account
proved unsatisfactory.
There jte *
in the parliamentary mechanism
the possibility of a very direct
popular control over the acts of
an
administration or of its bu¬

of Sept. 30.

as

*

Minister alike to

be

inventors

and

of a Cabinet pre¬
Tory Prime Min¬

important of all—the Parliament
which granted these powers could
rescind them from one day to an¬

Robert

a

review, constant alert¬
ness against
fixation in our ap¬
proach which might prevent a

public problem,
v *
To the performance of that task

Parliament

a

provision

and

a

ister, incidentally the grandson of
Duke. Third—and perhaps most

W

in

busily

official

powers was part
sided over by a

find

more

First, they;
to a Trade

composed predominantly of Tor¬
ies. 'Second,
that the working
class
official
who
applied the

every chance
parliamentary majority

its

use

repressions of war have com¬
pletely passed, I believe we can
ourselves

granted
by

to be noted

to

serve

of the country.

when materials

been

are

powers:

jority, will be given

able,. through our field offices in
every area

those

about

ma¬

Union

housing,

and more

Parliamentary

of

Power

The

forth—although not having

so

behind it

floors, she

canteen

mon¬

archy, hereditary House of Lords
and

to

was

we

as

organized
in a coun¬

of ancient tradition

Duchess

the

that

if

triumph

based

If'
issued

department,

his

or

orders

did so,
or the
Eton boy to go down the
coal mine and work underground,

keep in mind the fact that
party

years,

official, Ernest Bevin.

Union

govern¬

The Labor victory is seen

democratic

six

For

uniform.

soul in Britain, including
the
children, has been at the
orders of a working class Trade

of the great inventory of old but
usable

of

army,

every

scrub

great

try

an

out

pos¬

ment.

cialist

Our

into

If help is denied, Brit¬
largely socialist, even
Conservative

the needs of war
partly in and partly

been turned by

ain must be
a

of

is the word to use in the case of a
nation which for six years has

sible the inadequate food it might

simple and practicable procedures
to be used by builder and lender

public's interest in this de¬
veloping new situation.
We pro¬
pose to make our equipment as
complete and usable as possible

as

not

won,

cooperation, if indeed "class"

class

under

fairly

as

has

by virtue of a class war, but

foreign trade would be compelled
to apply socialism or communism
—equal distribution of goods—in

any

democratic

and the
under.

Labor Party

The

-

bills now pending.
To carry out the purpose of
the
National Housing
Act, the

plated in

not

predeces¬

up,

whatever government, that had no

or

his

pire after the fall of France in
1940, Britain could not have stood

will

which

contem¬

ments

Bevin

that

fact

closely

wealth and Empire. If there had
been no Commonwealth or Em¬

The Crucial Issue
The

so

sor's policy, since the security of
Britain is very closely linked to
the maintenance of the Common¬

and

decisive majority of seats.

a

the

for

accounts
follows

definite responsibility for its pol¬
icy and, if condemned, give way
to the government of a rival party

sibility placed in and on us by the
Congress to attack the total hous¬

to

parties.

which also will have

that

To

within the

and

other

There

countries apart from the Eng¬

still splendid

liamentary seats of about 200 over

difficulties of war-time.

task is nearly completed, and

in which Jefferson and

sense

Gladstone used that word.
are

Conservatives, with a poll of 48%
of the voters, a majority of Par¬

war

has

party

tary seats

der the three Commissioners who

done

for socialist

neglected,

universally

ative—had

Housing

Administration

have

almost

be

namely, that in the recent elec¬
tion a greater number of votes
were cast against the Labor Party

keepers of investment capital.
It
means the suppliers of materials,
the fabricators, the designers, the

bodies

immense

Housing Act, perhaps most prom¬
inently among Federal agencies.

to

seg¬

market.

will work

Help Britain

and

Job

increase

those other

means

ex¬

same

perience also convinces me that
the industry and those financing
it have not achieved success to the

table garden, small live stock and
that will make him self-sufficient.

Housing Administration and the
powers conferred by the National

and to serve a much
larger part of it than heretofore,
it

to

need

ing

"Without

(Continued from page 1453)

private building, that signi¬
most of you the Federal

in

the total field of hous¬

attack

to

calls

time to time.
fies

from

questions?

these

cione,

.

Is it making sufficient progress
In the movement already started

a

job to be

ment with

problem areas?

sions in

really recognized the scope of the

Thursday, September 27, 1945

Government

for an intelli¬
gently realistic and sympathetic
approach within existing law and
authority and amendments or ad¬
ditions which may be made from
it

agencies

(Continued from page 1455)

Federal

in

CHRONICLE

place
italist

to

free

give

enterprise

organization.

large

a

or
:

cap¬

*

.

,Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

Readers' Views of

Employment Problems

"the

Affecting Profits; "An Old-Fashioned American" Says
Right to Work is a Meaningless and Dishonest Phrase."

Over the

radio, krthe

Tornga,

and from the platform, Philip Mur¬
ray and other CIO officers have made their position clear.
There
is to be no reduction in the hourly wage rates and no increase in
the hours of labor. An increase in wages and a shortening in hours
of work is to be the objective sought.^ Also there must be no increase
in the cost of living.Without questioning the sincerity of Mr, Murray and his sup¬
porters I think the time appropriate for a demonstration. The CIO
has at its command millions of idle dollars. The government has
manufacturing plants for sale- By buying and operating one or more
of these plants the CIO can demonstrate to the public that they can
pay the increased wages they advocate, work the shorter hours sug¬
gested and sell products manufactured at ceiling prices.
To prove their contention and to make this a fair and just test the
corporation should be operated for a number of years in competition
with others in the same industry.
Whatever product, or products,
made should bear

no

press

must be

on

The records and books

mark of identification.

to be open at all times to an

Taxes, dividends, etc.,

impartial C. P. A.

ah average with other firms

Spartanburg, S. C.

in the

same

line.

Grand

Rapms i^uunai
Grand Rapids 2,

Building,

Mich.

invidious conclusions therefrom/

Co.—Descriptive
circular—Seligman, Lubetkin &
Co., 41 Broad Street, New. York 4,
New York.

Also

"71

„

.

.

detailed

a

circular

somebody else should furnish him with a job—why
doesn't he go out and make a job for himself? ; ;
}
There is something in this latter question that makes a strong

put another man to work? Why shouldn't every man in a free coun¬
try be expected to take care of himself, to create his0own job oppor¬
tunity?
Or, if he hasn't the ability and initiative to do so, and must
look to some one else to "give him work," why shouldn't he be an
appreciative and loyal employee of that other man?
'Of course every man has "the right to work.." But "the right to
work" is not synonymous with "the right to a job."
A "job" involves finding something useful to make or do which
some one else is willing to pay for.
It is a two-sided transaction call¬

But the "right to a job" is something else
again—something that so far our politicians have not dared to prom¬
ise and cannot deliver without abandoning the free enterprise sys¬
tem to which they still pay lip homage.
They know they have no
to compel the owners of private business enterprises to furnish
employment. They know that under our system of free private capi¬
talism no one has a "right to a job" unless he makes that job for
himself. That is why, in the last analysis, the proponents of "the right
to work" are driven inexorably into some form of totalitarianism,
either of the Left (Communism) or of the Right (Fascism or Nazism).
The

government which undertakes to implement "the right to
and regiment privately owned industry,

work" must either control

industries itself.
of the free en¬
terprise system and at the same time promise everybody "the right
to work," or, what is implied, "the right to a job."
Freedom of any kind involves risk.
The man who would be free
or

expropriate the private owners and run the
It is

must

thoroughly dishonest to declare one's support

Fortunately,

degree of opportunity,

and the highest

freedom

work but to prosper, go hand in hand. It has yet to be
demonstrated that any form of totalitarianism can guarantee as many

not only to

satisfactions to the average man as

freedom of individual initiative.

"AN OLD-FASHIONED AMERICAN."

York., '
copies

Also available are analyses oi
Liquidometer Corp., Delaware

Rayon and New Bedford Rayon.

memoranda

and

Following is text of a letter
the Federal Reserve

which the Board of Governors of

System has sent to Senator McCarran, Chairman
of

Senate*

the

Committee on

Judiciary,
also
to

the

and

Representa¬
Manasco,

tive

of

Chairman

General

the

ing

Office.

Accounting

-

r

The Board desires to call the

attention of
the

the

Committee to

enclosed excerpts from the

Board's

Annual

Report of 1938

Expenditures

emphasizing the need for reor¬
ganization of the Federal bank¬
ing agencies, in view of the

Exec¬

confusions and conflicts inher¬

Depart¬

existing diffusion of
and authority in the
Federal bank supervisory and
regulatory agencies.
^
/

the

House

Committee on
in

the

utive

with
regard to re¬
organization
legislation: ;
ments,

The Board
has

noted

with

ap¬

proval

the

ent

in the

powers

The

Board

enactment

has long

of

reorganization
measure
that would give the
President a free hand, subject
to
Congressional approval, to
a

endorse¬
Marriner

S.

Eccles

initiate

necessary

ment by

tions

the

the

Comptroller General and by the
Director of the Budget of reor¬
exemption

legislation without
of any Government

or

department, except¬

ganization
/

agency




favored

The

in

Board

requested

reorganiza¬

Executive Branch.
had

and

not

does

wish exemption from
ation of such

The

previously
not

now

the oper¬

a measure.

^

Board, therefore, favors

September

the

New England

on

tric Light & Power Co.

companies—

Co., 208 South
Chicago 4, 111.

available

dealers

Garrett

on

brochures

are

information'•* for

statistical

Corporation

and Magnavox Company.

*

Lines—Analyt¬
Co.,
Inc., 70 Pine Street, New York 5,
ical study—A. W. Benkert &
New York.

Also available to private invest¬
is
a
special
analysis
of

ors

Western Pacific RR. Co.

Dunningcolor—Descriptive cir¬
cular—J. F. Reilly & Co., 40 Ex¬
change Place, New York 5, N. Y.
available

Also

dum

is

memoran¬

a

International Detrola.

on

memoranda

are

San Mauricio Gold Mines and

Radiator

National

Co.—Anal¬

ysis, for dealers only—€. E. Unterberg & Co., 61 Broadway, New
York 6, N. Y.

Mindanao Mother Lode Mining.

Corp.

Memorandum

—

J. G.
—

Co., 135 South La Salle
Street, Chicago 3, 111.

Columbia Gas & Electric Corp.
—Study of proposed plan of re¬
capitalization
and
possible en¬
hanced

value

for

from—Eisele

there¬

common

White &

Co., Inc., 37 Wall
Street, New York 5, N. Y.

Kitchen &

Franklin Railway Supply Co.—
Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Y.

Gear Grinding Machine—Mem¬
orandum—Buckley Brothers, 1529
Walnut Street,

Consolidated

Cement

Corp.

—circular—Adams

&
Co.,
231
Street, Chicago 4,

South La Salle

111.
/

'

Also

dum

available

memoran¬

a

Electric Motors

Howell

on

and American

is

/

Co. ^

Service

New England Lime Co.—Circu¬

lar—Dayton Haigney & Company,
75 Federal Street, Boston 10, Mass.

Philadelphia 2, Pa.

&

King,
Libaire,
Stout & Co., 50 Broadway, New
York 4, N. Y.

National Terminals Corporation

Federal Machine & Welder Co.

—Study of situation and outlook—

Old

General Industries Co.—Recent

report — Mercier, McDowell &
Dolphyn, Buhl Building, Detroit
26, Mich.
—
;
;
B \
Also available a report on Na¬
tional Stamping Co.

Coal— Descriptive

Ben

data—Scherck, Richter Company,
Landreth
Building,
St.
Louis
2, Mo.

:

■

.

,

Class

A—Bulletin

de¬

recent

on

velopments—Lerner
&
Co., ,10
Post
Office
Square, Boston
9,

.

Gro-Cord

Also

available

Central
Co.

Iron

and

&

circulars

are

on

Steel, Kingan

Riverside

&

Cement.

111.

The

Utilities

Gas

and

Salle

Aviation

Continental

neering—Study
is

&

Engi¬

outlook

of

this

for

factor in

a

Also
randa

New

available

field

the

York

Scovill

of

120

on
a

Thermatomic Carbon Co. and

analysis of Panama Coca-

new

Cola.

Motors;

Mills,

Corp.; Detroit Harvester; Bow¬

Continental

Roi

Le

Inc.; Mohawk Rubber Co.;
TACA Airways; American Win¬

Dayton

lative

Avia¬

Chemical

York

prospects for
Hentz
&
Co.,

as

purchase

—

—

Study

sound

a

of

specu¬

Colony

First

5, N. Y.
are

studies

of

-Railways,/ Simplicity

Co., Inc., and Winters &

Pattern

Crampton.

>•

Lehigh Coal & Navigation Co.—
memorandum—Herzfeld

&

30

Stern,

York

Staff of Lobdeil Co.

Broad

Street,

New

4, N. Y.

Arrowsmith,

available

is

stddy

a

of
-

H. K. Porter Company—analy-r
sis—Sills, Minton & Company,
Inc., 209 South La Salle Street,
Chicago 4, 111.
available

Also

memoranda

on

statistical

are

Liberty Loan Cor¬

poration, and Serrick Corporation*
-'•f

Public

National Bank

Company—Analysis—for

&

Trust

dealers

only—C. E. Unterberg & Co., 61

Savoy-Plaza,

Inc.

—

Circular

—

Walter

Murphy Jr. & Co., 49 Wall
Street, New York 5, N. Y. ;
>
Schenley Distillers Corporation
—Brochure of articles they have
been running in the Chroniclewrite

Mark

to

Merit, in

care of
Corporation,

Schenley

Distillers

350

Avenue, New

Fifth

York

1,

N. Y.

who

He was previously
proprietor
of
Arrowsmith
Co.,
Inc., 165 Broadway, Newi York

Corporation

vs

Gen¬

eral Realty

Corporation—Descrip¬
tive circular—au
Pont, Homsey
Co.,
Shawmut
Bank
Building,
Boston 9, Mass.
* ■ Simplex Paper Corp.—reportWhite, Noble & Co., Michigan
Trust Building, Grand Rapids 2,
Mich.

Lipe Rollway Corporation—Cir¬
has
been serving as Lieutenant Com¬ cular— Herrick, Waddell & Co.,
mander in the Naval Air Forces, Inc., 55 Liberty Street, New York
has recently returned from duty 5, N. Y.
in
the Pacific, and has joined
Lobdeil & Co., 20 Exchange Place,
Long
Bell
Lumber
Co.—de¬
New
York
City, in an official tailed brochure for dealers only—
capacity. Mr. Arrowsmith was in Comstock & Co., 231 South La
service from December, 1941, to Salle
Street, Chicago 4, 111.
E.

Also

Baltimore & Ohio.

Sheraton

available

Pittsburgh

Detailed

John Arrowsntifh Joins
John

.

Corporation, 70 Pine Street, New

of

appreciation—H.

Company

stock

common

Manufacturing

Rubber

Co.—Discussion

High—

Propulsion—How

Jet

Propulsion and
its probable effect on the aircraft
industry—Copies on written, re¬
quest— Reynolds
&
Co.,-120
Broadway, New York 5, N. Y.

Industries;

Manufacturing—analysis
—Raymond
&
Co.,•»148
State

Broadway, New York 6, N. 'Y. *

let discussing Jet

Hardware;
Southeastern

Shoe;

Glass;

memorandum

a

Y.

ser,

dow.

74 Trinity Place, New
Y.

Also available is

memo¬

Alabama

American

Douglas

N.

& Trpster,
York 6, N.

How Fast?—An illustrated book¬

Brockway

Mfg.;

in¬

on

-

American

Great

Electrolux;

5,

late

are

V

on:

of

„

Corp.—Circular

Ilajoca

and

company

jet propulsion—Ward & Co.,
Broadway,

study

a

teresting possibilities—Hoit, Rose

Street, Chicago 4.. 111.

which

is

available

Mississippi Glass Co.

Corp.—Circulars—

Chicago

Hicks & Price, 231 South La

possibilities

Co.—recent

Rubber

analysis—Caswell
&
Co.,
120
South La Salle Street, Chicago 3,
Also

Consolidated

Pollak

Street, Boston 9, Mass.

Mass.

Also

System Makes Public Letter to
Senator McCarran Stating That Bill Authorizing President to Reorganize
Executive Offices Should Not Exclude His Own Organization.

La Salle Street,

Street, New York 5, N. Y.

Also available
on

realization

Fred W. Fairman &

Power Association and Iowa Elec¬

H.

and Purolator Products.

Urges Revamping Federal Banking Agencies

;

.

of

Inc., Ill Broadway, New York 6,
N. Y. -W
:

79 Wall

and

Missouri Pacific

issue of the Preferred Stock Guide

prospects—F.

Midland

and

of opinion pointing
liquidation of utili¬

consensus

Also

Dictaphone
Corp. — Analytical
discussion—G. A., Saxtori & Co.,

Also

and

tion & Eng.; Michigan

Chairman Eccles of Federal Reserve

memo¬

Develop¬

post-war
Koller & Co..

Inc.;

accept the risk as the price of his freedom.

and

Utilities

near-term

and

politician's promise.

power

Letter

recent Utility

on

by
to

ties

ments and ETnited Drug, Inc.

Company—An¬

condition

.

ing for initiative, intelligent planning, and the use of capital, and in¬
volving some degree of risk.
"The right to work" is a meaningless and dishonest phrase, a typ¬

randa

New

Baker-Raulong
alysis of

;

New York 4,
New York.
■/.■'
Also available is the Fortnightly
Square,

Midland

Realization Company—A study of
Values and Distribution, prompted

Inc., 70 Pine Street, New York 5,

that

appeal to the typical independent American.
Why, indeed, should
one man be expected to furnish the brains, initiative and capital to

ical

on

Foundation Co.

Cliffs

Also, certain leaders of American business have rather quer¬
ulously raised the question as to why any man should demand as a

page 1456)

iianover

Investment

Arizona Edison

Benguet Consolidated Miningcircular—-F. Bleibtreu & Co., Inc..

Editor, Commercial and Financial (Chronicle:
Thd* "Full Employment" pill how before Congress asserts "the
right to work" as a fundamental governmental policy, and critics of
the measure have been quick to point out that the constitution of
the U. S. S. R. contains a similar declaration of policy, and to draw

"right"

Bank

„

,

S. CRAIG LITTLE

'

Recommendations and Literature
(Continued from

Editor, Commercial and Financial Chronicle:

randum—Doyle, O'Connor & Co.,
Inc., 135 South La Salle Street,
Chicago 3, 111.
'"

Dealei-Biokei Investment

S. Craig Little Challenges CIO to Demonstrate That Wages Can Be In¬
creased Without

1485

•

*

.

;c

Southeastern Corp.—special an¬

alysis—Allen
<Kr
Company,
30
Street, New York 4, N. Y.

Broad

Sterling

Engine

circular—C. E.

Also available is
on

—

Descriptive

de Willers &

Co.,
Broadway, New York 5, N. Y.

i20

a

memorandum

Macfadden Pub. Inc.

/

/

August, 1945.

City.

;.!

-

enactment

of

a

P.

Mallory & Co., Inc<—
discussion — Steiner

R.

Analytical
Rouse

&

Co.,

25 Broad
New York 4, N. Y.
,

Street,

bill which does not include ex¬

Mary land Casualty Company-^

emptions, except for the Gen¬
eral Accounting Office. Such a
would make possible a
reorganization of the Federal
banking
agencies
which
the
Board feels is urgently needed
to meet the needs of the post¬

Report—Cruttenden & Co., 209
South La Salle Street, Chicago

war

world.

/

N

4, 111.

:

§

r

Bros,
32
New York 4, N. Y.
Midland

land

Realization

Utilities

memoranda
Co.

Mines, Ltd.
Wellman
tive

and

on

Standard

Steep Rock

//>//■:/'.' ■,'

Iron
•.

Engineering—descrip¬

memorandum

—

Wm.

J.

Co., Union Commerce

Building, Cleveland 14, Ohio,

i

.

Broadway,

'

Sincerely yours,
/
(Signed) M. S. Eccles, Chairman

Also

Mericka &

-

Michigan Steel Casting—report
—Strauss

&
Co., Terminal
Tower, Cleveland 13, Ohio. //V'

Stoker

reorganization

measure

U. S. Truck Lines, Inc.—Memo¬
randum—Otis

and

Mid¬

Common—Memo¬

Weyerhauesen Timber Company
—appraisal
of
the
situation—
Amott, Baker & Co., Inc., 150
Broadway, New York 7, N. Y/

THE COMMERCIAL & FINANCIAL CHRONICLE

1486

CO.

NEW FILINGS
registration
twenty
grouped according to dates
registration statements will

of

List

«(o,

which

on

normal coarse become effective, un¬

In

,

v.

sec.

•

;

SOUTHWESTERN
BELL
TE1EPHWNE
on Sept. 8 registered $75,000,000 40year, 2%% debentures, due October, 1985.
Details—See issue of Sept. 13.
Ofiering—Offering price to be filed by
amendment.:
Underwriters—To be sold at competitive
CO.

_

"y.'y"y;-yy ;• V;•/

bidding.

& ELECTRIC CO. on

GAS

CINCINNATI

8 registered $45,500,000 first mort¬
bonds due 1975 and 280,000 shares
of cumulative, $100 par, preferred stock,
/
Details—See issue of Sept. 13.
Offering—Offering price of bonds to be
filed by amendment.
The dividend and in¬
terest rate on preferred and bonds will be
filed by amendment.
Company will offer
the 280,000 shares of new preferred stocK
In exchange to
holders of the presently
outstanding 400.000 shares of our.preferred
etock on a share for share basis,
New
preferred not taken in exchange will be sold
to underwriters.
'
.
Underwriters—To be sold at competitive
Eept.
gage

bidding,

for the 39,221
shares of 4%% cumulative preferred stock
at rate of one share of preferred for each
four shares of common stock held.
Pre¬
ferred shares not taken by common stock¬
holders are
to. be offered to holders of
company's 5% preferred stock in exchange
for their present holdings on the basis of
2 1-10th
shares of 4%%
preferred stock
plus $5 in cash for each share of 5% pre¬
ferred presented for exchange.
Underwriter*—White, Weld A Co. named
scribe

$50

at

share

per

shares
$20

with

par

filed
for 250,000 shares

Kuhn, Loeb A Co., include A. G. Becker &

Co., Inc., Blyth & Co., Inc., Glore, Forgan
& Co., Harriman Ripley & Co., Inc., Lee

stock and on un¬

Higginson Corp., Lehman Brothers, Merrill
Lynch, Pierce, Fenner A Beane, Smith,
Barney A Co., Union Securities Corp., and
White, Weld & Co.

/ DEVOE

on

Sept.

A stock

of

of

shares of new class A
for subscription to

and

class

filed

by

share

amendment,

of

class

for
correspondingly

presently outstanding class A
B stock, at offering price to be
4 shares of

class A for each

new

held

A

basis of one

the

on

and

each

for

A

of

share

one

class

new

shares

20

named principal un¬

©lore, Porgan & Co.
derwriters.,

.

V. t. JACOBS CO., on Sept. 10 filed a
registration statement for 60,000 shares of
cumulative convertible preferred etock,
par $50.

'

i

i

13.

amendment.
Underwriters—H. M. Byllesby & Co., Inc.,

head underwriting

:

.,

.

-

MILLER MANUFACTURING CO. <m Sept.

registered $600,000, 5% sinking fund
debentures, dated Dec. 1, 1945 and matur¬
10

issue

Details—See

of

13.

Sept.

99%% as to $160,000 maturing
inclusive, and 99%% as to
$152,000 maturing 1966 to 1970 inclusive.
Underwriters—P. W. Brooks & Co., Inc.

Inclusive;

-

1965

to

companies

asset

net

relative

of

as

of

the

unless

31,

of

the

values

Oct.

basis

the

on

,

two
ex¬

change offer shall be extended for 30 days
in which case the relative net asset values
of

the

used.

not

Offering—100% plus interest as to $288,000 of debentures maturing 1952 to 1960,
3961

the

be

ing serially from 1952 to 1970.
-

,

International

American

•'■

§roup.

a

■

Offering—Price to public to be filed by

and E. W. Clucas & Ca.

14

Corp.
-v '•
•...»
V Details—See issue of Sept. 20.
Offering—Adams Express Co. which now
owns
398,900 (39.8%) of the outstanding
stock of American International Corp. will
offer
holders
of
the
remaining
601,100
shares
of
common
stock outstanding of

.

issue of Sept.

Details—See

Sept.

maximum of 450,000 shares of
common stock
(par $1), certificates of de¬
posit for a maximum of 601,100 shares of
common
stock of American International
registered

■

-

on

shares of

301,100
the

unless

effective

become

On

initial

The

are tendered.
relative
net
asset

the

values of the two

companies as of Aug. 31,

1945

each

been

exchangeable

of

share

minimum of

a

American

of

basis

will
will

as of Nov. 30
exchange offer

companies

two

American

for 0.71

have

would

of

share of

a

Underwriters—None.

■{.

SUNDAY, SEPT. 30
Bept.

11

registered

Offering—Offering

on

shares of

100,000

price

$10

13.

Streets,

Underwriters—Kuhn,

Loeb

&

ELECTRIC

CO.,

LTD.

on

11 registered $5,000,000 first mort¬
gage, Series E bonds due Oct. 1, 1970 and
250,000 shares of Series C, cumulative pre¬

Sept.

bonds

stock.

The

interest

and preferred

\

.

Details—See

issue

of Sept.

Offering—Offering

price

bonds

and

preferred stock will be supplied by amend¬
ment.
gtock

The Series
will be

cumulative

C

offered

for

sale

preferred

to

common

stockholders on the basis of one full share
of

preferred for each

mon

stock

held

on

2%

£9, 1945.
Underwriters—Dillon,
And

Dean

Witter &

shares of com¬

record

of

date

Read

Co.

will

&

Sept.

Co.,

each

of

payment

Magnin
of

of

one

Co.;

to

be

applied
mortgage
loan,
of

payment

to
I.

$2,200,000

presently outstanding 39,853 shares of
5% cumulative preferred stock
$i02.50, and balance will be added to

at

funds of

general

V

8-1.

Inc.

— Blyth
&
Co.,
principal underwriter.

is

(9-14-45).

offering—Offering

Sept. 20.
price to be

&

filed

by

A

Co.

and

Chas.

!W. ©eranton & Co. named underwriters.

of

MANUFACTURING

CO.

on

unspecified number

an

shares without par value./
Details—See issue of Sept. 20..
common

•'

Offering—The offering price will be sup¬
plied by amendment;
Company will offer
present common holders right to subscribe
new

common

common

would

for

have

to

basis

on

each

utilize

of

%

held.

share

31,001 V*

share

of

Company

common

to

make this offer.

shares

of

Underwriters—J.
named

principal

Arthur

-:

A

Warner

Co.

MANUFACTURING

CO.

underwriter.

on

Eept. 12 registered 100,000 shares of $2.40

'■

cumulative preferred stock,

tered 50,000 shares

Details—See issue of Sept. 20.
Offering—Offering- price to be

CANDY

CO.

on

Sept.

17

regis¬

($1 par) common stock.
Details—See issue of Sept. 20.

supplied

by. amendment.Underwriters—Reynolds

CHASE

:

Offering—Stock

to

be

offered

to

&




Co.

named
.

-*•'

per share.
Underwriter*—Berrlclb Waddell
named principal underwriter.

Inc.

filed

CO.

SERVICE

St.

OKLAHOMA

OF

first

$22,500,000

registered

off

of

preferred
the

and

by company

will

not

are

be used

to pay

fact

a

the

and

Co.

the

at

Laclede

adjusted

Proceeds—Proceeds

plus
used

to

sale

from

Power

purchase

sold

redeem

at

$1(#300,000

the

106.50

Address—8505

born. (Detroit
;

competitive

3%%, due Dec. 1, 1969 of the Southwestern
Light & Power Co.
Preferred stock not
taken in exchange will be sold and pro¬

estimated

has

par

West

registered

Warren

manufacture

of

Automo-

estimated

$41.25 and

offering price of

the

basis

presently
outstanding
convertible preferred stock on

of

shares

two

of

cumulative

$2

preferred for each share of $5.50 preferred..
Proceeds—Company intends to use pro¬
ceeds from sale of 12,000 shares of stock

capital.
Underwriters—Norris

man

Co,,

&

&

'
Hirshberg,

tered

Inc.,

Wyatt,

Tindall & Co.

named under¬

are

$8,028,800 will be held

(9-20-45).

Otis

—

MONTANA

NEW

YORK,

registered 100,407 shares of com¬

INC.

has

mon

stock,

will

Proceeds

New York

veilings

and

go

to

principal

H.

Johnson

&

Co.

underwriter.

$44,202,000

first

30-year

amount,

principal
Electric

stock, Series

$25,' and

'

Jose

8, California.
utility.
Offering—Offering price of

-

Business—Public

bonds to be
filed by
amendment.
Company will call
139,000 outstanding shares of 6% cumula¬
tive preferred stock, Series A and Series B
offer holders option of
exchanging their stock on a share for share
basis
for
new
Series C preferred stock.
Common stockholders will be offered rights
to subscribe to the new common at $30 a
and

at

same

time

share on the basis of
mon

for each

V* share of new com¬

share of common held as of

8, *1945.
Proceeds—Proceeds

-

will

be used to

sale

of

each

to

to

pay

retire

($1.50

divi¬

exchange.

^

-

Dallas

Trust

INC.

5%

has

registered

200,000
preferred stocfc

convertible

4

•

808

—

3,

Turks

Head

Rhode Island.

Building,
*%,.

••

Business—Weaving and knitting of yarn*.
Offering—Offering price to the public,
■

Proceeds—Proceeds
deem
cost

*

,

will

be

used

to

-re¬

outsanding prior preference stock at

of $532,980,
to purchase and install
high speed flat knitting machinery'for

the

production

fabrics
the

to

of

fine

supplement

corporation
and

at

the

quality

the

knitted

other

lines, of

estimated

an

balance

of

cost, of

the

proceeds

will be held available for further
expan^iojjr

of

its

operations

the

and

acquisition

of

by stock control, when available
at reasonable prices.
•
f;'*"
Underwriters
Blair
&
Co.,
Inc. and
Maxwell, Marshall & Co.
Registration Statement No. 2-5932. Form
or

—

(9-24-45).

F.

L.

JACOBS

r.
--'*#•

has

CO.

registered 40;000
shares of $1 par common stock.
Address—1043

Spruce Street,

£

Detroit!

Michigan.
Business—Manufacturer
for

automobiles

metal

trucks.

and

Offering—Price

of

to

part*

•»

•

'«•.$},

to be filed' bj

public

amendment.

j

Proceeds—Proceeds

will

to

go

selling
*'4?

stockholders.

Underwriters—H. M. Byllesby & Co., Inc.
E. W. Cfucas & Co. n&med
principal

underwriters.

Registration Statement No. 2-5933. Form

and
Co;

and

Power

Underwriters—To be

$1,748,000

re¬

5%

1951.

at competitive'

bidding.

■'*"

STATES

50,000

POTASH

shares

(no
i'

CO.

has

par)

regi

common

■

Address—30 Rockefeller Plaza, New Y'brk

20, New York.

■

<•

.

•

?

.

.

Business—Mining, refining and distribu¬
tion

of

potassium

salts.

Offering—Offering

'

.

price

be

to

filed- by

amendment.
Proceds

—

Proceeds

stockholders.

'

Underwriters

will

to

go

selling
:v.v-

-

•

Lee

Higginson

Corp^
principal underwriter.
;
.*
Registration Statement No. 2-5934. Form
S-l. (9-24-45).
—

named

Registration Statement No. 2-5927. Form
S-l.

UNITED

istered

at

Butte

non-callable

sold

(9-24-45).
■'

com¬

(9-21-45).

ARIZONA

CENTRAL

THE

POWER

pf

has

CO.

LIGHT

registered 840,000

stock,

common

Address—Title

no par.
A Trust

Bldg.,

&

shares

Phoenix,

DATES OF OFFERING
UNDETERMINED
Si

Arizona,

utility,

Offering—Price

to

filed

be
will

Power

A

Light

stock.

go

by

Company,

•

to

amend¬

We present below
a
list of issues
whose registration statements were filed

American

owner

of

•

-

be

sold

bonds

redeem on Nov. 6, 1945 at

twenty days or more ago, but
offering dates have not been

the
,

mined

or

are

unknown

to

wbo*e
deter¬

*

us.

by competitive

;

bidding.
Registration Statement No. 2-5928. Form
S-l.

(9-21-45).
ADAM

filed

SATURDAY, OCT. 13
POWER

PENNSYLVANIA

&

LIGHT

CO.

registered 1,818,719 shares of common
stock, no par and 1,818,700 subscription
warrants entitling holders to purchase such
stock

$10

at

share.

a

and

Hamilton

Streets,

Pa.

utility.

will

of

shares

entitled
of

the

turn, offer

in

subscribe

%

of

all

outstanding common
Power & Light Co.
subscribe to 1,818,700

share

of

new

stock

on

right tp
the basis of

Pennsylvania Power &
for each one share of Na¬

new

&

Light

held. Electric Bond &
to take the number

Co.

common

Share Co. has agreed,

its

^common
holdings in
National
(46.56%T and National has agreed to take
the
shares
not
taken by its remaining

to

-

<

stockholders.

>

warrants. Of the stock to be

capital to strengthen

also

its capital structure.

Registration Statement No. 2-5929. Form
(9-24-45).
—v:;;
■,./

offered, 95,009

and

Treasurer,

The

state¬

50,000 warrants of which
being sold to certain officer*
and employees of the company and
25,01
tp underwriters,
v ;V
25,000

covers

are

Details—See "issue

Offering—The
$8.50 per

of Sept.

price

to

6.

the

public

1*

share,

--y
underwriting group
headed by Van Alfctyne, Noel & Co. -

Underwriter*—The
is

ALLIED CONTROL CO.,

filed

a

shares
stock
mon

registration
of

(par $8)

and

INC.,

statement

55-cent

on

for

cumulative

20,000

Sept. 1
100.009

preferred

shares of

com¬

(par $1).

Details—See

issue

Of

Sept. 6.

Offering—The securities

Underwriters—None.

of which

dent, and 5,000 shares by Harold E. Lustig;,

-

proceeds will be used by
Pennsylvania P. & L. to provide new equity
Proceeds—The

S-l.

ance

stock

of shares proportionate

$1,

par

are to be offered for sale for
50,000 shares reserved for issui
upon
the exercise of stock option'

anxl

shares are being sold by Elias Lustig, Presi¬

National will

common.

new

to- the

Power

to

its stockholders the

Light common
tional

the

Pennsylvania

of
be

stock,

common

100,000 shares
cash

ment

Offering—National Power A Light Co. ae
stock

HAT STORES, INC., on
Aug 29
registration statement for 150,000

of

Vice-President

Business—Public

holder

a

shares

.

from

in

Union

StOCk.

with

debentures

first mortgage gold bonds due

SERVICE CO. has

Address—374 West Santa Clara St., San

,

regis¬

and

5%

$10,589,900

Address—Ninth

29,142 shares of common
Stock,' par $25.
Dividend rate of pre¬
ferred stock to be filed by amendment.
par

has

CO.

refunding mort¬
bonds, 2%% series due 1966 at 105%;

gage

(9-20-45).

shares of cumulative preferred

C,

Cali¬

has
R.

Registration Statement No. 2-5922. Form
S-l.

First

cash will be used to redeem and

pany

selling

stockholders.
—

of

Address

S-l.

Underwriters—To

of

and

preferred

$25.

Providence

$40,000,000 first mortgage bonds due

by amendment.

named

Co.,

be filed by amendment.
Proceeds—Proceeds
together

nettings.
•
T^T",
Offering—The offering price will be filed
—

avail¬

Offering—Offering price and interest rate

$1.

par

16, N. Y.
Business—Manufacturer

Proceeds

&

POWER

Proceeds—Proceeds

OF

of

used

(9-24-45).

par

ment.

FABRICS

offered

Dallas

S-l.

general corporate purposes.

Business—Public

LIBERTY

old

for

Rupe^ <ft
Co.,
Rauscher
Pierce & Co., Inc. and Pitman & Co., Inc.
Registration Statement No. 2-5931. Form

Address—40 East Broadway, Butte, Mont.
Business—Public utility.

Registration Statement No. 2-5921. Form
S-l.

not

of

be

Underwriters—Include

Son,

as

1975.

Inc.,

Evans

Brooke,

dend)

will

refinancing

shares

cash ad¬

a

.

i

& Co., Inc., J. H. HilsThe Robinson-Humphrey
Neal
A
Waggoner,
and

A.

Co.,

Clement

of

with

shares

preferred.

company

utilized

(9-21-45).

tire

company's

prior

old

and

to

remainder of stock will be offered to hold¬

preferred

fractional

of

one-tenth

.

THE

Offering—Company will sell 12,000 shares

of

be

Co... and Allen & Co.
I
Registration Statement No. 2-5926. Form

Business—Operates chain of retail furni¬
stores.

%

for

and

one

prer

tliei^

exchange

to

of

•

to. the
to

fornia

Gft.

ers

$15,028,800

at

for

S-l.

$5.50

at

&"%TORES

MANUFACTURE

registered 40,756 shares of $2
cumulative
preferred
stock with stated
value of $25 a share but no par value.
Address—619 Forsyth Building, Atlanta,

at

share

per

$2,000,000
for
machinery
and
equipment; $1,750,000 for tools, dies, jigs
and
fixtures; $1,500,000 for prepaid ex¬
penses;
$1,750,000,
and
the
remainder
able

5%

right

basis

directly

follows:

has

public

of

justment

four shares

S-l.

Proceeds—Net. proceeds

(9-20-45).

NATIONAL

4j?

shares

the

the

additional machinery and businesses, either

to public.

Underwriters

Registration Statement No. 2-5920. Form

ture

on

Dear¬

Ave.,

Offering—To be offered at $10

bidding.

CORP.

stock

shares

stock.

common

bile>.

S-l.

ferred

A

price

32), Mich.

Business—The

principal amount of first mortgage bonds,
Series A. VU %, due F^b. 1, 1971, and to
redeem at 104.75 the $6,581,100 principal
amount cf First Mortgage Bonds, Series A,

applied toward redemption of old
5% preferred at $110 per share jjSlus ac¬
crued dividends.
I fi.
Underwriters—To be sold at competitive

service

outstanding $1.50 dividend cumulative

new

at

CORP.

1,700,000 shares of $1

bonds

0£

Houston.

and

{1*

£500,000,

funds of the compaiwf to be

general

Street,

supply

Offering—Offering price
to
be
file<L
Company will offer holders of its presently

prop¬

(9-21-45).

KAISER-FRAZER

preferred.

Maury
well

$25.

1945 of the

March
business of

Registration Statement No. 2-5925. Form

Offering price of bonds
and stock will be filed by amendment.
old

MATERIAL

business.

TEXTRON,
which

preferred and the redemption Frl.ce of

new

FIELD

has

shares

utility.

proceeds

$8,439,909.

S-l.

-C('
OIL

Boulevard.

bidding.

difference

price ^of

Twelfth

Underwriters—To be

exchanging holdings for new preferred
stock on the share for share basis* plus a

Oct.

Co.,

North

purchase in

Light

Offering—Company proposes to
of its 5% preferred stock privilege

offering

of

bonds

on

outstanding promissory notes of

erties

•

Texas.

of
$9,000,000 maturing Dec. 28,
1945, and to finance on a permanent basis

the

whieb

competitive

CO.,
registered 12,500 shares of 5%%
cumulative ($100 par) preferred stock.'.
INC.

amount

of

initial

shares

interest rate

1, Missouri.

estimated

holders

the

first

40,000

at

amendment.

Louis

k

the

MIS¬

series

and

The

by

%
^ffer to

Business—Public utility.

between

OF

$13,000,000

Offering—The

f ulsa 2,

Oklahoma.

representing

CO.

collateral trust bonds

Business—Public

mortgage

Address—600 South Main Street,

payment

ELECTRIC

Address—315

ment.

public
&

at competitive

dividend rate on the preferred stock will be

due July 1, 1975 an$ 98,500
shares of cumulative preferred st^ck, par
$100.
Interest rates to be filed by
^amend¬

at $8

Underwriter.

sold

registered

and

Allentown,

registered

17

stock.

<

CALIFORNIA WATER

1

RAYTHEON

has

has

1975

due

Inc.,

Co.,

registered $11,282,000 first mortgage 3%%
bonds Series C due Nov.
1, 1975, 139,000

....

Underwriter*—Putnam

t

Eberstadt

.

SATURDAY, OCT. 6

to

of

Amendment.

r

SOURI

and to construct-

sold

be

Proceeds—Proceeds

UNION

com¬

bonds.

„

(9-21-45).

mortgage

(9-20-45).

Underwriters

Registration Statement No. 2-5915. Form

company

,

bonds series A,

.

issue

Details—See

i

trust.

investment.

?'

company.

Underwriter*
named

bonds,

mortgage

the

re¬

yXi

THE

lien

i

HOUSTON

those

N. Y.

market.

Address—244 Madison Avenue,

will

$290,886

of

A

NASHUA

Sept. 12 registered $15,000,000 first and
mortgage 3% bonds, series K,
1980.

basis

to

amount

^y
be

of

the $16,000,-

first

and

/>"■'

expenses

Underwriters—F.

Inc.

refunding
«Jue

the

for each four shares

by

stock.

writers.

company's

CONNECTICUT LIGHT AND POWER CO.

-

on

common

S-l.

principal underwriter.
Registration Statement No. 2-5919. Form

presently held.

common

Sept.

1

new

Proceeds—Proceeds

under¬

MONDAY, OCT. 1
On

stockholders

common

share of

write one-half of the issues.

■

Seventh

unsecured notes payable and to redemption

20.

of

and

Los

Offering—Offering prices will be supplied
by amendment.
Preferred to be sold to
public and common to be offered to present

the

on

stock will be filed by

Amendment.
,

rate

Hill

Broadway,

—

Angeles 55, Calif.
Business—Department store.

prin¬

Co.

cipal underwriters.

ferred

Address

supplied

be

to

and 237,775 shares of common

$100,

stock.

t>y_ amendment.

HAWAIIAN

INC. has registered 80,000
shares of 3%% cumulative preferred stock,

BULLOCK'S,

par

par common stojck.
Detail*—See issue of Sept.
1

INC.,

LINES,

MOORE-McCORMACK

applied

of

1967,

Underwriters—To

by underwriters to redeem that portion of
$5.50 preferred not offered in exchange
and
balance
will be applied to working

Adams.

filed

Registration Statement No. 2-5S24. Form

named

the

due

■*:?■• ;-V'""';

104%.

FUND,

ceeds

EXPRESS CO.

ADAMS

THE

Minne¬

principal

refunding

series

Lidding.

cash

20.

offered

be

will

of Sept.

issue

Offering—35,827
stock

holders

preferred shares of¬
the old preferred
reduced.
The ex¬

new

exchange

in

(no par).

Details—See

preferred.

number

RAYNOLDS CO., INC., on
40,437 shares of Class

&

registered

14

3%%

funds

redeem

to

facilities
approximately $10,179,000.

Address—1524

be

to

be

to

$75,000,000

and

first

of

INC., has registered
1,000,000 shares maximum of $1 par com¬

PUBLIC

by

headed

Underwriters

—

1975.

presently outstanding, at redemption price

Proceeds—For

general

used

mortgage

Business—Oil

of

interest

Registration Statement No. 2-5930. Fdrna
(9-24-45).
:
i
^

has

1,

Street,

rate

Proceeds—Proceeds

TUESDAY, OCT. 9

mon

with

be

first

Series A, 3%%, due 1961,
additional
property and

.

CO.

Minnesota.
utility.

demption

(9-18-45).

CHEMICAL

will

000

amendment.

of

by amendment.

Underwriters—Smith, Barney & Co. and

Y YiV!:

S-l.

Offering—Offering price will be supplied
Underwriters

POWER

Fifth

Offering—Interest

par)

and

filed.

together

pany

Business—Public

A-l.

20.

of Sept.

2,

apolis

cumula¬
preferred stock at $105
plus accrued
dividends.
Aggregate cost
will be $3,035,463
and additional funds
will be supplied by company.
Underwriters—To be filed by amendment.
Registration Statement No. 2-5918. Form

or

writers.

•

proceeds will be applied
1, 1945 the 28,502 out¬

South

*

v

price

S-l.

STATES

Address—15

CO.

V-S;;
Proceed*—Proceeds, estimated at $24,750.-

registration statement for $75,000,-

a

tive

($100

be

to

will cost

WEDNESDAY, OCT. 10
filed

GAS

utility.

Offering

—

bidding.

Dec.

on

Offering—At

of class B held.
Will be
Shares not taken by present shareholders
change offer will expire on Oct. 10, 1045 j
and
the
remainder
not
offered present
and the balance of preferred not taken in
shareholders will be sold to public.
exchange and still exchangeable for pre¬
Underwriters — Shields
A
Co.
named
ferred stock will be sold to the under¬
principal underwriter.

.

redeem

named

(9-20-45).

standing shares of company's 6%

MEXICO

DE

ELECTRIC A

100 pesos.
Details—See issue

The company provides that
gf more than 24,085 shares of old preferred
»re offered in exchange for the common,

^

to

Address—39 Broadway, New York 6,

registered 197,500 American
value of approximately

14

Sept,

on

shares of $6 cumulative preferred
a share-for-share basis, and the
company
will also offer an unspecified
jnumber of common shares to holders of
60,000 shares of the old $6 cumulative pre¬
ferred stock on the basis of an unspecified
number of common shares for each share

the

sub¬

to

rate

000,

Corp.

(Inc.)

Offering

Underwriters—To

supplied

be

to

Securities
Co,

000 first mortgage bonds, due Oct.

Business—Investment

274,085

fered

rights

stock

to

offering

is

company

common

price

A

NATURAL

,

Business—Public

and

Registration Statement No. 2-5923. Form
S-l.

amendment.
Proceeds—The

WEDNESDAY, OCT. 3

specified number of common shares.
Details—See issue of Sept. 13.
Offering—250,000
shares of
the new
cumulative preferred stock will be offered
to
holders
of
the presently outstanding

©f

of

INDUSTRIA

WILSON & CO., INC., on Sept. 10

•A;'.=V

Offering—The
holders

Hall

NORTHERN

_

te registration statement
of cumulative preferred

etock

by

lative convertible

Union

—

principal underwriters.

for railroad

company

Offering—Offering

registered 39,221 shares of 4%% cumu¬
preferred stock (par $50).
Detail*—See issue of Sept. 20.

13

$2,000,000
and

bonds

securities.

Sept.

on

principal underwriters.

SATURDAY, SEPT. 29

i

adelphia, Pa.
Business—Holding
CO.

COLORTYPE

AMERICAN

fund

trust serial notes.
In¬
terest rates are to be filed by amendment.
Address1—135 Independence Square, Phil¬

principal underwriter.

named

sinking

trust

$500,000 collateral

preferred stock and ac¬
cumulated and unpaid dividends thereon.
Underwriters—Hemphill, Noyes A Co. is

THURSDAY# SEPT 27

/

MUSKOGEE CO. has registered

collateral

share of

shares of common for each

cumulative

7%

will

common

NORTHERN

Address—Acquila Court Building, Omaba?
1, Neb.
™

preferred at

augment working capital
general funds of business.

Harris,.

and,

6%

to

to

Underwriters

SUNDAY, OCT. 7

22,932 shares

remaining

Proceeds from sale of

added

THE

has registered $25,000,00.0 serial debenture*.

not

retire

used

be

due

Proceeds from sale of pre¬
taken in exchange will be

1961.

stock

to

£26.25.

Co.

A

principal underwriter.

named

stock on the basis

first preferred

7%

of

of six

at the discretion of the

less accelerated

of Sept. 20.

Davis

H.

bonds, Series B,

mortgage 4%

1,

ferred

be filed by

to

used

Underwriter*—Paul

offered

pany's presently outstanding

price

first

May

df Sept. 20.

issue

Offering—Offering

plus accrued interest all company's
$11,882,000 principal amount

outstanding

amendment.

Offering—The shares of common will be
in
exchange to-' holders of com¬

statements were filed less than
days

common

issue

Details—See

whose

issues

of

shares

137,592

105%%

17

of

Details—See

registered
stock, par $1.
13

Sept.

on

Sept.

on

150,000 shares of capital stock

registered
(par $1).

TUESDAY, OCT. 2
WARNER

CORP.

BORG

W.

GEORGE

Calendar Of New Security Flotations

Thursday, September 27, 1945

ally offered in units of
ferred

and

one-fifth

are

to be

'V

,j

inittx

share of pi*

one

share

T"

of

common

ai^

price per unit to be filed by
amendment.
Underwriters—Ames,
Emerich
&
Co
Inc., and Dempsey & Co. are named prij&
a

cipal

underwriters.

~

••••

•.«

'hit
'/-U

j

Vblume

AMERICAN
ING

stock,
*

i

135

filed a registration
shares of common

142,154

$1.

Offering—The
stock

is

company

the

offering

for

subscription by its common
Stockholders on the basis of one additional

share

each 2%

for

The sub¬

shares held.

will be filed by amendOf the total, 85,304 shares will be

scription!
taent.

offered

price

Aviation

stockholder,
56,850 shares will be offered to other
stockholders.
Any- shares not subscribed
by other stockholders will be purchased
by1 Aviation Corp. - to

Corp.,

as

and

named,

'$ Underwriters—None

j

INC. on July 17
statement for 505,000
shares of Class A capital stock, par $1,
and 250,000 shares of Class B stock, par
ANCHORAGE

filed

HOMES,

registration

a

Details—See issue of July 26.

in

of

units

of

to be offered

shares Class B

50,000

shares

Sept.

filed

9

sale of

CORP.

statement for

v

C.

A.

include

underwriters

of

shares

10

Class

B

at

Class

and

A

2

price of $60.20 per

a

'

unit.

Co.,

Inc.;

Julien

W.

Langley

C.

Emerich

Ames,

Collins

&

Xz XZfX f J J-;v' ••

Incp*

General Corp.,as the purchase price of

FARMS

CO.

filed

31

Aug.

on

registration statement for 50,000 shares of
cumulative and participating preferred

thares of

$3

-Details—See

^-Offering—The
holders

of

its

Sept.

of

issue

937,500

shares

General

pursuant to

Plan

share

has
granted
stock rights to

subscribe to
of

the new preferred at the rate
share for each 2'/2 shares held at

one

$52

Unsubscribed shares shall
such price as fixed by the board

share.

per

be sold at

of directors.

of

The

filed

be

(Underwriters—To

by

amend¬

CORK

CO.

Aug.

on

25

statement for 161,522
shares of $3.75 cumulative preferred stock
J[rio par).

^Details—See issue of Aug. 30.
Offering—The company is offering 108,-

holders of common stock of
Sept. 13, 1945, in the ratio of one
for each 13 shares of common held

528 shares to
record
share
at

$102.75

25.

The

shares

per

stock

preferred

will

offer

expire

cumulative

any

unexchanged shares at a

by amendment.
Underwriters

underwriters

The

—

are

Co., Inc.; Drexel & Co,; Eastman, Dillon &
Co.; First Boston Corp.; Goldman, Sachs
& Co.: Graham, Parsons & Co.; Harriman
Ripley

Lynch;

Singer,

Webster

and

Stanley

&

Reynolds

Co.;

&

&

Deane & Scribner; Stone &

v.':.,

Blodget,

'

Inc.;

Stroud

refunding
bonds

and
July

1945,

Details—See

The
offering
public will be as follows:
At 100.50, $84,000 of 3V4S
$281,000 of 3!/2S at 101.

v,

sinking
2,

serially Jan. 1, 1946 to July 1, 1957.
issue of Aug. 30.
'

due
**

serial

Offering

—

Underwriters—B.

Ziegler & Co., West

is named underwriter.

Wis.,

Bend,

C.

price
to thi
$75,000 of 3s
at 100.75 and

share

filed

a

shares

stock

statement

registration

cumulative

4.40%

of

for 15,00f
preferred

issue

of July

holders
at

of

preferred for subscrip¬
Subscription will be accepted

present

par.

taken

not

preferred

Shares of

in

for

share

each

1st and 2nd preferred

exchange

will be sold

to un¬

derwriters.

Underwriters—Blyth

Co.,

&

prin¬

Inc.

up to Oct, 15,.
Unsubscribed stock up to
11,000 shares will be taken by Brooklyn
Trust Co. as trustee for investment.

EVERSHARP, INC., on July 9 filed a
registration statement for 32,500 shares of
stock,

common

the

of

account

Shares are Issued
are being told for

$1.

par

outstanding

and
certain

Details—See issue

stockholder.

of

July 19.
f
Offering—The price to the pu$ic will
be filed by amendment.
j|
Underwriters—Lehman
Brothers^ headf
the

underwriting

5%

group.

|

REFINING

FRONTIER

filed

CO.

Aug.

on

25

sinking fund • debentures,

1950.

due <6ept,
;.■**-■■■

issue

Details—See

of

Aug. 30.

the

to

1,

V

5. I.,

;

CENTRAt OHIO LIGHT & POWER CO.

n

filed

28

Dec.

a

registration

statement

11,972 shares of preferred stock, cumuitive ($100 par).
The dividend rate wlL'
»r

e

filed

&

Christensen,

&

will

be

Peters,

Co.,

Inc.,

and

Simons, Roberts & Co.

Sidlo,

- —.

FINANCE

GENERAL
filed

CORP.

to invito
to be rendered tc
; In obtaining acceptances of the exchange
ffer of new preferred stock for old preerred and for the purchase from it of
uch of the 11,972 shares as are not exhanged pursuant to the exchange offer.

;

Offering—Company

roposals

for

proposes

services

CREDIT CO. on June 7
registration statement for 250,000
hares of preferred stock ($100 par). Divlend rate will be filed by amendment.
Details—See issue of June 14.
Offering—Company is offering the holdrs of the 121,938 shares of 4V\%
cumula¬
te convertible preferred stock to exchange
COMMERCIAL

[led

heir

a

stock, share for share, for the new
The underwriters have agreed

referred.

the 250,000 shares of
in exchange for outtanding preferred.
Company will call anj
f
the old
preferred at $105 per share

j

any of
not issued

purchase

referred

accrued dividends.
Underwriters—Kidder,

lus
nd

Ipal

First

Boston

underwriters.

Corp.

-

Peabody & Co
named prin■?'

are

CONTAINER ENGINEERING CO. on June
registration statement for 25,000
hares common stock (par $10). • :
Details—See issue of June 21.
•
•

5 filed a




he

for

the

ber

each

entire

share

and

to

Morris

be

last

the

on

of

new

that

so

as

Secretory

nized

Morris

be

CONSOLIDATED

the

NATURAL GAS
COMPANY

out¬

par

Tk

OF AMERICA On Sept.
registration statement for 104,500
shares
cumulative
preferred
stock,
4%
series, $50 par.
Details—See issue of Sept. 13.

business October

the

Oct.

at

shares

11

100

each

1945,

8,

of

rate

stock

common

shares

record

Sept.

agreed

to

prior
share at the
preferred stock, for

of

of

26.

stock

common

The

purchase

held

underwriters

15, 1945:

Extra cash dividend of

share.

COMPANY, INC.

50^ per

Checks will be mailed.

of

E. E. DuVall,

The Boaxd of Directors

September 26, 1945

>

Company, Inc., today declared,'
a
regular quarterly dividend

CENTRAL

-

AIRLINES

AMERICAN MANUFACTURING

registration
$10,000,000 15-year conver¬
tible income debentures due Sept. 1, 1960.
The interest rate will be filed by amend¬
Sept.

on

filed

5

a

Noble

for

:

of Sept.

and

of

COMPANY

Streets

West

an additional dividend of
fifteen cents (15c) per share

of the American
Manufacturing Company has declared a divi¬
dend of 50c per share on the Common Stock
of the Company, payable October 1,
1945 to

13.

Stockholders

Offering—The price to the public will be
filed by amendment.
Underwriters—The underwriting group is
headed by White, Weld & Co., and Carl
M. Loeb, Rhoades & Co.

of

Directors

at

Record

September

ness

the

1945.

18,

close

of

stock

The

Capital Stock
Company, payable^
31, 1945, to Stock-?
holders of record October 15,
on

will

October

busi¬

record

of

be

September 18,

the Common

of th-e

closed for the purpose of trans¬
Common Stock at the close of business

books
fer

of

Board

twenty-five (2 5c) ,per share,

plus

.

.

Brooklyn, New York

v

A

The

ment.

issue

Offering—The price to the public will
be
filed by amendment.
Underwriters—Paine, Webber, Jackson &

principal

Curtis,

DRUG

GRAY

filed

underwriters.
STORES,

registration

a

1945.

1945 until October 1, 1945.
B. BROWN, Treasurer.

INC.

also

registered
for

reserved

common

filed

Sept.

on

statement

be

will

for

6

20,000

stock.

by

The

amendment.

40,000

shares

of

Sept. 13.
the public

to.

Vice President

Turben
&
Co.,
heads the underwriting group.

be

reserved

RESISTANCE

for

CO.

conversion

preferred stock.

on

of

issue

Offering—The
units

of

the

•

Details—See

stock

Sept.
will

share

per

unit.

-

of

C" •'

$5
•

,

V..

Newburger & Hano', and Kobbe, Gear& Co., Inc.

hart

on

Aug. 9 filed

Details—See

SULPHUR CO., INC.,

registration statement for

a

167,OOu shares of
5

stock, $1 par.

common

issue

of

Sept.

on

at

$9.75

on

the

its

3,

the

1945,

share

per

basis

stock

common

of

for

right

of

record

subscribe

to

additional

seven-tenths

of

one

shares
share

each share held.
Subject to the prior
rights of holders of subscription warrants,
of the corporation,
who are not
directors, and employees will be entitled
for

officers

subscribe

to

to

June

29

RESERVOIR

filed

$3,343,500

1,

stock,

a

4%

1970, and 4,458

no

&

POWERNCO.

registration statement
income debentures due

shares of

common

par.

Details—See issue

of July 5.
Offerinsr—Company is offering,

ers

of

sold

$3,343,500

3%

income

due

Oct. 1, 1959, units consisting of $750 of 4%
Income bonds and one share of its com¬
mon
stock,
outstanding

in

exchange

income

bond,

for
in

each

$750

connection

with the plan of reorganization.

Underwriters—The Dunne-Israel Co.

M.

„

at

record

8, 1945.

SUN-KRAFT,

close of

the

INC.

DIVIDEND NOTICE

Treasurer.

August

on

stock and

declared by the Board
of Directors on September 12, 1945,
for the third quarter of the year 1945,
equal to 2% of its par value, will be
paid upon the Common Capital Stock
of this Company by check on October
15, 1945, to shareholders of record aC
the close of business on September 28,
1945. The Transfer Books will not ba
A cash dividend

preferred

Offering—The company is offering the
83,784 shares of preferred stock in ex:hange for the 29,182 shares of 7% and
34,602 shares of 6% preferred stock now
outstanding on a share for share basis
with a dividend adjustment in each case
and $5 in cash for each share of 1% pre¬

of common re¬
the preferred.
>
Aug 16.
Offering—The price to the public is $5
per share. In addition to the 90,000 shares
which
are
to
be
offered
to the
public,
10,000 shares of the preferred are, to be
issued by
the company to the estate of
Eben D.
Norton in exchange for
100,000
shares
of
common
stock owned by the

ferred

estate.

—

The

has

company

re¬

RED

registration
of
«

common

OIL

May

31 filed

issue

of

shares

990,793
7.

June

registered Ben¬

Co.,

ad¬

;

i

statement.

TOWING COMPANY on July
11 filed a registration statement for $500,000 serial 4Vr%
equipment trust certifi¬
'

'

T

-

<

issue of July 19.'
!
Offering—The price to the public of the
different
series
ranges
from 99 to 102.
The average price to the public is given
as 100.47.
'
Details—See

/

Underwriters—S.

Louis, Mo,

and

K.

John

Cunningham, Inc.,
Nordman Co., St..
'■

'■

Octo¬

on

CO.

stock.

A

'

of

the

Of

Thomas
'

•

Secretary-Treasurer

shares

the

'

New

Co.

of

to

165

,

is

Is
-

■■

Gil-

June

24

220,000

RED

filed

a

shares

LAKE

MINES,

is

United

60 V2

registration statement for
capital stock,
par $1

of

Issue

cents

States

of

Aug.

2.

York.

Common

have

1)4%

Stock.
FRANCIS FISKE,

Canadian

or

55

Louis,

St.

Treasurer.

cents

Burnside Sc Co.,

Rocky

Mountain

St

Pacific

Raton, New Mexico, September 22,
COMMON STOCK DIVIDEND No.

Co.

j945.

88.,

has declared a dividend
of fifty cents per share on the Common "Stock
of the company to stockholders of
record at
the close of business September 27,
1945, pay¬
able
October 15,
1945.
Transfer books will
not be closed.
P. L. BONNYMAN, Treasurer.
The

funds,

Underwriters—Willis E.
New

COMPANY

declared a quavfcetly
(87}/2 cents per share)
on
the
Preferred Capital Stock
payable
on
October 15,
1945 to stockholders 'of
record at the close of business September
29, 1945. No dividend was declared on the
of

LTD. on

Offering—The offering price to the pub¬
lic

Directors

SMELTING

M1NSNG

September 20, 1945

(Canadian).
Details—See

STATES

Broadway,

York, N. Y.

VIRGINIA

The

dividend
\

f

16.

the public
■Z'z.zX.i

underwriter

Texas,

t

r

,

Offering—The
price
$12.50 per share. ■

UNITED

REFINING AND

Foun¬

Gilcrease

Details—See issue of Aug.

Oil

.

1945

September 25,

13

Aug.

on

v'

C. E. Beachley,

statement for 143,659

Underwriters—The

ROBERTS

-

class

dation.

crease

.

of

'

„

OIL

OSAGE

registration

a

behalf

for

payable

1945, to stockholders of record at
of business on October 6, 1945.

Checks will be mailed.

registered 113,468 are being sold by the
registrant and 30,191 shares are issued
and outstanding and
are
being sold on

Sept. 10 to determine whether a stop order
should be issued suspending effectiveness
of registration

Stock of the Company,

15,

clcse

shares

of the registrant.
Principal underwriter

set

meeting held today, declared a quarterly
cents per share on the Com¬

at a

dividend of 25

the

VALLEY

for various obligations

COMPANY

COAL

(Incorporated in Delaware)

ber

filed

heretofore been

Hearings—Hearing

of the

C0N3CU3AT10N

mon

underwriters.

Inc., in exchange

Issued to Bennett & Co.,

Order

,

a

issue of Sept. 6.
Offering—The price to the public will
be filed by amendment.
Underwriters—Eastman, Dillon & Co.,

of common regis¬
530,823 shares of

100,000 shares
The balance of

stock being registered have

Stop

Beckett, Treasurer

is

Co.

Details—See

Bennett & Co.,

for all of Federal's stock.

Inc., Is the sole underwriter as to an

—

'•

,

Cerf

D.

E. J.

San Francisco, California

holders.

with the

Underwriters

'

closed.

~

common

STORES CO* INC. on
registration statement for
25,000 shares of 4'/2% cumulative preferred,
series A ($100 par), and 150,000 shares of
common
(par $1).
Of the total, 16,259
shares of the preferred will be sold by the
company and the remaining 8,741 shares
of
preferred and the 150,000 shares of
common
will
be
sold by
certain stock¬

acquisition of 54%
stock of Seatex Oil Co.,
Inc.
In
addition, 150,000 of the shares
registered will be issued to stockholders of
Federal Steel Products Corp. in exchange

tered.

retired and cancelled.

filed

Aug. 28

a

Inc., parent of Red Bank, will
receive 209,970 shares in return for a like
number of shares loaned to the registrant

ditional

of

.

The Board of Directors

on

statement for
(par $1>.

In connection

shares

THRIFTY DRUG

CO.

Offering—Of the shares
nett &

„

named principal underwriter.

acceptances of

stock

Details—See

100,000

Underwriters—Floyd

offer.

BANK

These

to be

are

tained Alex. Brown & Sons as dealer-man¬

to aid it in obtaining

of

Details—(Bee issue of

exchanged.

Underwriters

200,000 shares

conversion

for

Dividend %o. 119

Common Stock

filed

8

registration statement for 100,000 shares

served

ELECTRIC CO.

PACIFIC GAS AND

*

,

SCHILLER,

registration statement for 63,784 share*
preferred stock (par $100).

Details—See issue of April 26.

Pittsburgh,
■

of

of 30-cent cumulative convertible

cates.

to hold¬

bonds

15,1

has been declared payable October

stockholders

business October

interest

Bennett & Co., Inc., Dallas, Texas.
& Co., New Or¬
the principal underwriter.

MARICOPA

May

the

to

1945

a

Underwriters—D'Antoni

leans, is

for

with

to be

share on

Company

POTOMAC EDISON CO. on April 19 filed

21,287 shares at $9.75 per

share.

on

are

per

will

of the outstanding

of Aug. 29.

Offering—The company is offering to the
holders

30.
the public

ment.

stock

-■kl

Sept. 11, 1945

of twenty-five cents (25c)
all the outstanding stock of the

A quarterly dividend

bonds

bidding,

and Treasurer

Milwaukee, Wis.

Dividend No. 161

in

for

stock

common

competitive

the exchange

offered

Underwriters—The principal underwriters
are

at

consisting of one share of preferred
one

Offering—The price to
filed by amendment.

ager

6.
be

THE SUPERHEATER COMPANY

rate named by the successful bidder. Names
of the underwriters will be filed by amend¬

be

Aug. 31 filed a registration statement for
175,000 shares of 6% cumulative converti¬
ble preferred (par $5) and 525,000 shares
of common (par 10 cents), of which 350,000
to

CO.

of 4y2%

will

by amendment.
Underwriters—Merrill,

INTERNATIONAL

LIGHT

1, 1965.

Details—See issue of Aug.

be

the

filed

are

debentures due Oct.

a

issue

Details—See

&

of

of

conversion

preferred.
Offering—Price

POWER

20 filed a registration statement
$93,000,000 first mortgage bonds due
Oct. 1, 1975, and $27,000,000 sinking fund

Aug.

R. CORD

ALVIN

ROBERT

for

Underwriters—The

Shares of convertible preferred
rate

PENNSYLVANIA
on

of,,

Froedtert Grain and Malting

Lerchen & Co.

PENNSYLVANIA

statement

DIVIDEND

Secretary

Underwriters—The underwriting group is
headed by Harriman Ripley & Co., Inc.,

Watling,

STOCK

COMMON

have

shares.

and

,

"Largest Commercial Maltsters
in the World"

:

unsubscribed

any

*

GRAIN

and MALTING

Regular semi-annual cash divi¬
of 501 per share; and

per

Treasurer.

FROEDTERT
;

dend

for subscription

$50

value,

par

Stock of the

the fol¬

holders of record at the close of

104,500 shares of preferred to the holders
its

L. G. HANSON,

declared

day

of two shares

$5

value of $10.

lowing dividends on the capital
stock of the Company, payable
on November 15, 1945, to stock¬

a

offering

this

Stock

Common

directors

of

board

he

MURRAY CORP.

is

new

for each share of Common

Dividend No. 4

has

of

of

New York 20, N. Y.

outstanding.

company

will be recog¬
for any

1945,

$5 per share, on the basis

30 Rockefeller Plaza

Underwriters—American General Corp. is
underwriter.

Offering—The

1,

until surrendered, and a Cer¬
tificate or Certificates for new Com¬
mon
Stock of the par value of $5
each shall have been issued therefor.
Holders of Certificates for shares of
Common Stock of the par value of $10
each are therefore urged to exchange
such Certificates, for Certificates for
new Common Stock of the par value of

pro¬

common

October

after

purpose,

result 591,165 shares

a

would

common

old

resolution adopted at

a

1945, no Certificate representing a
share or shares of Common Stock of
10,

the par value of $10 each

par $5, to 3,500;000, par 10 cents
each, and to issue four shares of new com¬
of

1945.

Pursuant to

changing the author¬

share

1945.

15,

the Stockholders' Meeting held on July

holder* of record November 1, 1945.
WILLIAM S. COULTER,

October 1,

on

stock

common

200,000,

each

October

on

dividend

October 15, 1945 to holders of Common

ized number of shares of old common from

for

declared

Stock of record at the close of business

of

provide

been

of 37 VW per share on
the Common Stock, ($5 Par), payable

common

of

month

would

Plan

sold, by

of

share

one

has

There also has been declared a quar¬

terly

each four shares

for

business

of

share

is payable November 15,1945, to Stock¬

not

number

Series,

1,1945, to Stockholders of record at

The extra dividend

preferred and
do

Ltd., Inc;

the close of business November 15, 1945.

entitled

Industrial

plan announced

stock

29

Aug.

on

registration statement for $2,000,000

a

15-year 3%% debentures, due Aug. 1, 1960.
Details—See issue of Sept. 6.

JEFFERSON LAKE

4, 1945.

will

4%

Stock,

Each regular dividend is payable Decem¬

18.5

.

payable November 1, 1945 to holders of
Preferred Stock of record at the close

v

amendment.

by

Details—See issue of Jan.

A

that

■

public

Underwriters—Boettcher
Writer

and

underwriters.

of

25 cents per

and the holders

shares

common

Details—See

f

'

Plan,

vided

CORP.

registration statement for ;$400,000

a

Clevelar-J,

BURRILLVILLE RACING ASSOCIATION
n
Aug. 28 filed a registration statement
jr $1,000,000
6% 20-year debentures due
ept. 1, 1965, and 10,000- shares class A
tock (no par).
'
Details—See issue of Sept. 6.
t Offering—The
public offering price for
unit consisting of $500 of debentures and
ive shares of stock is $500 with the un¬
derwriter receiving a commission of $25
Underwriters—Barrett & Co., Providence,

0.40

purchase

per

value)

chore

COMMON STOCK (extra dividend)

com¬

preferred of In¬
to

Industrial

purchase

Morris

to

cipal underwriter.

Company

19.

a? Offering—The stock is being offered to
tion

second

dividend

(par $100 >.

Details—See

of

held.

now

BROOKLYN BOROUGH GAS CO. July 11

''

of

will

v.

f ''r"\

regular quarterly dividend of $1.00
share on the Cumulative Preferred

A

to

standing

13.

-

Offering—Price

dated

mortgage
series A

con¬

100.50.

registration statement for $440,000 first

fund

filed

is

25 conic per

covered

6 filed

BENSON HOTEL CORP. on Aug. 22 filed
ft

7%

Philip Morris & Co

share '-zXYZYXY

COMMON STOCK ($1 par

■

"J

'

pw

;f.

■

,

Y,,ZZXXX:

stock

common

ferred of Industrial 12.50 shares

mon

of Sept.

new

entitled

stockholders

to

529,655 shares of $5 preferred on the basis
% of a share of 1st preferred and Ya

& Co.,

<■

.

issue

of

Inc., and Union Securities Corp.
fur-T-'V-iV'-jy.

be

will

preferred

$8

Corp.,

1.60 shares of

of

In the event that 7%

Plan.

of
The

at

N

September 19. 1945

and

4% CUMULATIVE PREFERRED STOCK

named

Co.;

Leonard

Moore,

Brothers;

Morgan

& Co.;

Loeb

Kuhn,

Inc.;

Co.,

&

Lehman

stocks

Second

shares

sale

extra dividends:

with

by the offer they will be
exchange their shares on the
following basis: for each share of 7% pre¬
of

cumulative
stock.

be

purchase

Offering — Company
will offer 353,103
shares of new first preferred and 176,552
shares of second preferred convertible stock
to
holders
of
the
presently outstanding

and

Smith, Barney & Co.; Kidder, Peabody &
Co.; Mellon Securities Corp.; Blyth & Co.,
Inc.; E. W. Clark & Co.; Dillon, Read &

the

on

amendment.

Details—See

exchange

in

The exchange

25.
The under¬
unsubscribed or
price to be filed

Sept.

offer

will

writers

4%

its

of

for share basis.

share

a

also

holders

convertible
on

Rights expire Sept.
is offering 52,994

share.

company

to

preferred

for

Finance

holders of

of Industrial

vertible into common.

registration

a

second

rate

dividend

by

•ARMSTRONG

Z'

preferred

com¬

Sept. 6

on

353,103 shares -of*
stock
and
176,552

share

will

entitled

X:
The

named.

Industrial

common

to

hai declared the following regular

or for exchange under certain
Under offer one the holders of

each

for

shares

■

agreements

Corporation

than

elect

to market its own securities.

New York

the

stock of Morris Plan Corporation,

common

,

ZELLER#ACH CORP.

CROWN

registered
cumulative

ment.

filed

per share.
Underwriters—None
pany proposes

are

CORPORATION

The Board of Director* of this Corporation

the prospectus.
offered by Ameri¬

can

held.

'

'

MILLS

by

shares for each share held

Offering—Price to the public is 30 cent!

6.

company

preferred

'

stock.

common

Details—See issue of April 26.

is

stock, without par value.

covered

The

dustrial

COVENTRY GOLD MINES, LTD. on ApriJ
21 filed a registration statement for 333,333

a

shares

937,500

be entitled to purchase

' :XX'XXX

par

Offering—The company on Aug. 21, 1945,
$7,500,000 in cash from American

mon

&

stock,

common

PHILIP MORRIS"

for

received

held.
ARDEN

of

"Call for

on

statement

10 cents.
Details—See issue of Aug. 30.

other

Inc.;

Co.,

VI

D widml
Notice

OF AMERICA

registration

a

shares

937,500

conditions.

Inc.;

Co.,

&

DIVIDEND NOTICES

value

common

and Mason-Hagan,

Co.,

&

&

Pierce

PLAN CORP.

filed

24

per

Co.;

&

Dewar, Robertson

Co.;

Rauscher,

Moran

Mason,

&

Cdi heads the underwriting group.;

Co.;

Webber,

Pancoast;

Saint-Phalle

de

&

Jackson & Curtis; E. H.
Rollins & Sons, Inc.; First Cleveland Corp.;
First Trust Co. of Lincoln; Stifel, Nicolaus
&

MORRIS

Aug.

Morris

Allyn & Co., Inc.; H. M. Byllesby &
Central Republic Co., Inc.; Paul

Davis

Paine,

:°r'

-v

Underwriters—Andre

H.

DIVIDEND NOTICES

■

■

Underwriters—»-Blyth & Co., Inc.

,

100,000

Underwriters—The

on

a registration statement for
shares of common stock (par

issue
of
Aug.
2. '
'
Offering—Price to the public will be filed

cumulative

$100, and

CO.

filed

by amendment.

preferred stock,
shares of common,
no
par.
The interest rate on bonds and
dividend rate on preferred will be filed by
amendment.
Of the common stock regis¬
tered,
50,000 shares are being sold by
Nathan Cummings, President and the re¬
maining securities by the company.
Details—See issue of Sept. 13.
*
Offering—The
offering, prices
will be
filed by amendment.
shares

40,000

UTILITIES

148J

Details—See
on

$6,000,000 15-year sinking fund debentures,
par

25

.

XXYXr

registration

a

entire

the

GROCERS

CONSOLIDATED

,

Offering—There is to be presently of¬
fered to the public 250,000 shares of Class
A and

will manage the
-.C ■
:;v%;' vv

Co.,- Inc.;

10 cents.
.

223,351 4-6
$5).
;

issue.

Details—See issue of Aug. 24.

new

July

Louis,

for

par

MONTANA-DAKOTA

Offering—Price to the public is given «•
per share.
Underwriters—William
L.
Ullrich, St

MANUFACTUR¬

CENTRAL

CORP. on Aug. 24

statement

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4424

162

above

company

Thursday, September 27, 1945 /

CHRONICLE!

THE COMMERCIAL & FINANCIAL

1488

1

"

New England

4.

Trading Markets in

Foreign Securities

Ironrite Ironer

Baltimore Porcelain Steel

Lear Inc.

Bendix Helicopter

Majestic Radio & Television

Bendix Home

c

U. S.

Wilcox & Gay

Corporation

50 Broad Street

Members N.

40

AFFILIATES CARL MARKS & CO.

Inc. CHICAGO

Y.

Security Dealers Ass'n

Exchange PL, N. Y. 5
Teletvoe

HAnover
2-0050

•

& Co.

ESTABLISHED 1919

New York 4, N. Y.

•

WiTn

M. S.

SPECIALISTS
Telephone

v

-

Lear

Utah Idaho Sugar

Globe Aircraft

FOREIGN SECURITIES

Telecoin

:

Majestic Radio V

Mississippi Central Common

Appliances

Clyde Porcelain Steel

1-971

.

v

Finishing

Seeger Sunbeam

Du Mont Laboratories

NY

Du Mont Laboratories

:?r

:

Amalgamated Sugar

MARKETS

Public Service
Appliances

Bendix Home

Y.

N.

HA. 2-8780

1-1397

Kobbe, Gearhart & Company
INCORPORATED

"Our Reporter on
:

Membert

Governments"

.

.

TELEPHONE

with somewhat
the bank eligible
The demand for these

1%% due 1950, the 2s and the longer 21/fcs.

.

.

.

buying by institutions that wanted

larger return than was available in the % % certificates offered in
exchange for the partially exempt 2%%:; bonds on Sept. 15. . . .
The restricted obligations have shown only minor fluctuations with
indications that these securities at present levels have quite fully
month.

.

.

financing that gets underway the end

of next

.

The June and December 2s of 1952/54 and the 2'/ks due 9/15/67/72
are still liked for appreciation and income.
.
.
One of the large
dealers is advising the sale of the 2V2S due 1956/58, and the pur¬
chase of 2V2s due 9/15/67/72, for appreciation, and taking down of
j

.

CO?

premium.

4

;

'
It was also pointed out that in an unsettled market the de¬
fensive position of the longest 2^s should be superior to that of
the

.

,

*

,

2i/2s due 1956/58.

The restricted 214%

.

'

.

positions.

.

.

investors.

.

,

ralph f. carr & co.
BOSTON 9, MASS.
Beaton

New York

Teletype

Hubbard €442

Hanerer 2-7913

BS 328

.

,

created will tend to de¬
to expand
.

.

.

..

We specialize in all

.

it is

To prevent

this development, the Federal Reserve Banks, would

their wartime policy and reduce thir holdings of Gov¬
ernment securities.
Central banks holdings of Government obli¬
have to

.

.

Industrial Issues

reverse

.

.

.

Investment Trust Issues

.

gations consist principally of bills and certificates maturing within
less than a year.
.
They can dispose of these holdings to member
banks.
With excess reserve at high levels it is not expected that

Public Utility

..

any

Securities with

and

V/2s with

obligations,

v

a

.

Frederick C. Adams & Co.

On the other hand if the latter are unwilling to buy more

Specialists in

have to issue
longer-term yielding securities to the banks to pay off Treasury
bills and certificates held by the Reserve Banks. ...
of

the

short-term

obligations, the Treasury

may

.

"New England Unlisted Securities

24 FEDERAL STREET, BOSTON 10
Established In 1922

In/either event, this policy would check the increase in excess

restricted 2t4s

.

Indications

presently outstanding in the amount of

RATE

AVERAGE

exempt bonds, which are declining and will be
;'v
.

UP

.

.

doubtedly something will be done to bring it down after the Victory
The elimination of the Wz% and 2% bonds which played
an important role in the various War Loans, and which were pur¬
chased in the open market, after the drives, by the commercial banks*
.

.

amounts have been excluded from the coming campaign.

as

the unrestricted securities.

means

arid bonds, which

certificates,

or

will tend to lower the

commercial bank eligible obligations.
Thus it seems as though

V

J

.

.

.

.

ARREARS
par

.

.

.

interest rate.

.

.

.

Bank

and

Insurance

Broker-Dealer
Business

Stocks...

Items <—1459

Personnel

Bookshelf

Man's

Calendar of New Security

Canadian

Securities

Dealer-Broker
mendations

.1466

Flotatlons.1488
1468

Investment
and

Municipal News
Mutual

.

Our

Reporter on Governments.....1488
Reporter's Report
1468

Public

Utility

Railroad
Real

Securities

Salesman's

Tomorrow's

Recom¬

Securities.

1472

1944 Earn. After

1470

Corner

Markets—Walter

Whyte

1458

Notes

taxes.

?):

Oliio Securities Section

1466

Funds

on

..
.

.#64.43
21,88

>

Earnings since 1939 range
#12.82 to #57.33 a share

1454

1456

Notes

1944 Earn.

........1456

Says

Literature

and

Bef. Taxes .
Taxes

1454

1462

Securities.....

Securities

Estate

from
after

-

V.

•*;?.

•

page

y':

■

'X"'-

* *

Recent Price:

1460.

b' V

:r

r^

Write

or

53

'7,■ av'./

.'•%

call for Analysis on

Maine Central

...

Preferred

money

Specializing in Unlisted Securities

the commercial banks should

result in bringing down the interest burden. '.

.

.

At the

same

148

BANK

time

policy will concentrate bank holdings more largely in the short-

—

INSURANCE

Tel.
N.

PUBLIC UTILITY

—

INDUSTRIAL

—

State

St., Boston 9, Mass.

CAP. 0425

t

YTelephcne

:

Teletype BS 259
HAnover

2-7914

REAL ESTATE

thus maintain the high degree of liquidity of

the commercial banking system.

Columbus Auto Parts
Eastern

Our

Page
1464

The sale of % % certificates and other

short-term low coupon securities to

securities and

a

Page

INDEX
■■

rate for

the Treasury is preparing the

of

Efsg:and Comoany

the outstanding
average

the 5% $190

on

preferred

New

,

established in 1C82.

market for the time when it will be possible to check the rise in the

term

.

that these institutions will have to confine their

'after drive purchases to the %%

this

.

Accordingly, in order to be assured of greater marketability,
it is reported that the savings banks will not be disposing of size¬
able amounts of their unrestricted issues, despite the attractive

NSTA

This

average

.

substantial positions in the restricted
obligations, do not feel that these securities have as good a market

greater use of the restricted obligations by the Government

.

notes

been believed by some.

had

as

levels at which they are now selling.

the deficit has increased the debt burden slightly. . . .
interest rate has risen from 1.92% last December, to
1.94% at the end of June.
The level of interest rates is still
the most important element in the Treasury's financing, and un¬

in large

that the savings banks may not be as large sellers

These institutions, which have

average

...

are

unrestricted securities

of the

in financing

Loan.

.

.

.

.

further decreased in the next year.

The

Tele. BOston 22

Tel. HANcock 8715

SAVINGS BANKS

.

of the partially

The

\

"

by shifting part of the Federal Reserve Banks portfolio of
Government securities to member banks.

$38,284,000,000 and from indications, in the near future, will be al¬
most as large as the commercial bank eligible taxable bonds, which
now aggregate
$47/794,000,000 and will not be increased during the
drive.
The restricted obligations are already considerably in
excess

New Eng. Market

reserves

slightly longer maturity than the outstanding

The restricted bonds are

a

trouble disposing of these securities to the

member institutions

.

in order to attract funds from individuals

:> and non-bank investors, the Treasury will offer

Stocks and Bonds

TEXTILE SECURITIES

.

Federal,, will have

the principal increase in the marketable

Insurance and Bank Stocks

,

-

*

Haile Gold Mines

CENTRAL BANKS

.

1945, will be in the restricted obligations.

Loan, since

Trading

Northern New England Co.

.

This vydU add further to the nation's inflated money supply.

During the Seventh War Loan these bonds increased by $13,235,000,000, consisting of $5,277,000,000 of 2Y4% due 6/15/59/62, and $7,958,000,000 of the 2Vz% due 6/15/67/72.> , ,
'
. >
,
I;
These securities will again be added to during the coming
Victory

Campbell Common

Oceanic

-

.

.

year

;

.

:

Aside from certificates,

.

press interest rates further and to encourage hanks
their investments and loans and thus their deposits.

RESTRICTEDS MOUNTING

issues for the

the United States.

The high excess reserves that will be

.

.

doubt be followed by a

no

.

.

.

attention in the
not distant future.
It is reported that some of the larger banks
are
watching this section of the list very closely and undoubtedly
will be making commitments in these issues, with an easing of the
reserve

will

lend-lease

of

Now that
our export trade is to be placed on a commercial basis for the most
part, a large cash export surplus is certain during reconversion
period, with consequent heavy gold imports. , > . A renewal of the
gold flow into the United States will effect money market condi¬
tions here.
Gold imports cause a corresponding increase in bank
excess reserves, as gold certificates are deposited in the Federal Heserve Banks by the Treasury against the newly received metal.
.
.
At the same time, excess reserves will be swelled also by a return of
currency from circulation.
rf

due 1956/59 is still being recommended by

Although the note market has not been too active recently,
.

termination

The

reversal of gold shipments from

.

.

A. S.

GOLD INFLOW

believed that these obligations will be getting more
.

Worcester Trans.. Assoc.

,,

shrewd market followers, for non-commercial bank
'

Norma Hoffman Common

/new york 1-576

Waltham Watch Common

a

new

A

Enterprise 6015

5

BELL TELETYPE

A good tone is evident in

.

securities probably reflects some

discounted the

YORK

NEW

TELEPHONE

PHILADELPHIA

•

Association

Dealers

Security

STREET,

REctob 2-3600

market continues firm

Government bond

The

reduced volume.

York

NASSAU

45

By JOHN T. CHIPPENDALE, JR.

New

.*

»

v" V

LUMBER & TIMBER

F. T. Ley & Co.
Electric

States, Pfd.

Steam

BONDS, PREFERRED AND COMMON STOCKS
WANTED

Sterilizing

Eitingon Schild

BOUGHT

—

SOLD

—

QUOTED

Blocks

Robert Reis Co.

Pressurelube, Inc.

Vacuum Concrete

U. S.

Radiator, Pfd.

IL C. Godman Convt. Pfds.

Globe Oil & Gas

REMER, MITCHELL & REITZEL, INC.

Southwest Gas Producing

208 So. La Salle

Copper Canyon Mining

RANdolph 3736
WESTERN

W. T. BONN & CO.
120

Broadway

Now

Teletype

NY 1-883




Established

York 5

Telephone COrtlandt 7-0744
Bell

Morris Stein & Co.
50 Broad

1924

Street, NEW YORK 4, N. Y.

Teletype NY 1-2866

HAnover 2-4341

of Securities

St., Chicago 4

UNION

TELEPRINTER
"WUX"

BELL

SYSTEM

TELETYPE

CG-989

Hill, Thompson & Co., Inc.
Markets

120

and

Situations

for Dealers

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

IL-