Full text of Commercial and Financial Chronicle : September 4, 1941, Vol. 154, No. 3976, Section 2

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Ia 2 Sections—Section 2

Keg. U. 6. Pat. Office

WITH WHICH HAS BEEN COMBINED THE FINANCIAL REPORTER

New

Number 3976

Volume 154

York, N. Y., Thursday, September 4, 1941

Best in

loans, Discounts And Deposits
as

Loans and'discounts

of June 30,

reported by 13,423 insured commercial banks

1941, amounted to $19,913,000,000, the highest figure

of June 30,

1941, also were higher than on any other call date
during the existence of the FDIC.
Loans and discounts rose
$2,899,000,000, or 17%, since June 29, 1940.
This increase, chiefly
in connection with commercial and industrial or /'business" loans.,
may be attributed in considerable part to increased business activity
under the impetus of the defense program, it was explained,
v

The

comparative statement of assets and liabilities of all insured

•

favored

this

than

will be the largest in more
a

course,

decade. Cash farm income

and will not merely sit with folded hands awaiting;
It can and doubtless will proceed as it has

developments.

during the last half of 1941 will done in other
similar periods of perplexity to study the
the highest since the inauguration be about $1,000,000,000 more than
situation carefully, calmly and then to do what business cir¬
The
of deposit insurance and amounted to $65,617,000,000, an in the like period of 1940.
increase of $7,191,000,000, or 12% from a year ago.
Increase? Spread- between prices received cumstances permit taking what precautions it can to avoid
and prices paid by farmers has finding itself presently the victim of unforeseen turns ofin loans and securities of the banks, interbank redepositing
and a continued influx of funds from abroad have added to been narrowed this year, but the events.That is the
American way of doing things.
:
the existing large volume of deposits.
The expansion ol average^ of purchasing power of
farm
products continues below | >;: It is plain, howeverj that some weeks will elapse before•
deposits over the year period was chiefly in deposits of inan¬ it will be possible to see far ahead very clearly, x Aside fromdividuals, partnerships, and corporations, payable on demand: parity, x The Department's
which increased $5,432,000,000, or -almost 19%.
Deposits of nouncement further says: ■ xX; Xthe uncertainties inherent in the world situation as it exists
domestic banks, including certified and-officers'.checks and
Average of prices of farm prodcash letters of credit,' increased by $1,039,000,000, or about bets is only slightly higher now today, and, incidentally, in the state of domestic - politicals
,

The total deposits were

l.
5
:

I *

Many Years

will

winter

and

come

commercial banks issued by the Corporation also revealed the fol¬

lowing significant items:

Copy

continuing
high level of consumer buying
power, the Department of Agri¬
It has often happened in the
past that vacationists' {re¬
culture said on Sept. 1 in its re¬
turned to the Street after the Labor Day
holidays refreshedlease covering the ieatufes of the
current and prospective agricul¬ and ready to settle dpwn to the real work of the autumn and
tural
situation.
Department of winter only to find that the uncertainties which had per¬
Agriculture econmists look for no plexed them before
they left for the country still awaiting '
sharp advances in prices received
them.
It is more or less a certainty that this
history will:
by farmers during this, periotf,
but they say that total farm in¬ repeat itself this year.
The financial community can not, ofX

Chairman Leo T. Crowley announced on Sept. 2.
as

Farmers

fall

reported to the Federal Deposit Insurance Corporation, FDIC
Deposits reported

ever

Farm Income Outlook

FDIC Banks Report New Record
•

Price 40 Cents

than

Cash

and

funds

June 29, 1940 of
Y

X' '

due

from, banks showed

beginning

affairs, two major uncertainties immediately confront those
of mar¬ who make their living; in the securities business, the banks,:
fall har¬ iand the investor, both individual and institutional.
One of
of Sum¬

$1434,000,000, or almost 5% and amounted ketings: is increasing as
vesting of crops and marketings
on
Page 32)
of livestock get under way.
By
the ehd of this month, pearly 12,000,600 people will be working on
the farms—filling silos, picking

■(Continued

■

(Continued

AHEAD OF THE NEWS

winter

Rarely in the recent years of the great Government
trading been so dull, has interest in the
price trends of Treasury obligations appeared at so low an
ebb.
;
Glancing just at the day-to-date quotation sheets
or
talking desultorily with some professional trader, you

grains.

economists report |
A relative calm is likely to prevail over Washington for
foods will the next several weeks.
For one thing most of the mem¬
this fall and winter than bers of
Congress have gone off on vacations on a gentle¬
ilast, and that prices have not gone
men's agreement that no major business will be transacted.
up as much as consumer incomes
more
responsible was the<^
have increased.
A dollar buys But
Department

that the supply of most

be larger

get the impression thai^
iXXxX;XXxxlxx;y/l-^--i
creation of Mr. Roosevelt's latest
nothing
is
happening • — and over monetary policies (and over slightly less food this year than
nothing of importance is going the source of financial power in jlast, but people have more dol¬ alphabetical agency, the- SPAB,
lars.
Total food consumption in Not a single additional gun or a
to happen until the news from Washington).
If
that's
abroad takes a drastic turn one
true-—and
informed the United States this year is the single additional plane will come
off the production line but there
quarters believe it is—there'll be largest on record. About 45 cents
way or the other. ...
little or no Opposition to Eccles' iof each dollar spent by consumers won't be much, if any, more agi¬
But if you did get that im¬
tation out of
Washington about
strong desire to raise bank re¬ for food goes to the farmer; the
pression, you would be 100%
'needs" having been been grossly
serve requirements
at
least to remainder of the consumer's dol¬
■Awrong.
'■ >x:x <\X1X.:XxlxyXXand
unpatriotically -underestim¬
the present legal limit.
lar pay^ for processing and dis¬
h
These are crucial days in
ated.
'
(Continued on Page 29)
■
tribution.
the
high-grade
bond mar- } ■■■.;>\
■■■■■■■
v
;X"-' X
X The reason for this is that
x kets,!
in
the' Government
would

GENERAL CONTENTS
XXx xxxX Regular Features

•

Financial

Situation

(The)___

•

17'

From

Washington Ahead of * - *
fhe News_^-^._^__X._—17

Legal Oddities —ia
On

the

Foreign Front..

19'

Our. Reporter on Governments

Editorials' :\i

;X:

■

x v;;:xX;::;v:x;

especially. . ; . We're
in a waiting period
today,
true—but we're waiting for
news
that may be of vital
mart,

;

-v

subordination

vers

major reversal

...

now

Bank

it should

Inasmuch

kins-is still in
and
occasionally

Coal

bad
goes

general over-all pic¬
ture—in loans, business, banking
And in the

programs—events of prime
portance are shaping up. . .

im¬

Page 29

Agriculture Department Names Stamp Program Food List for September

places

health

World

War.

Permit

XXXXX-..
19
17-20
18-

Valuations.

Output_.____
Prices •— World

Coke

Crude Oil Production—June_

Oil Production—Week

Electricity.

away

Second

the

Trade

Review

and

Crude

London and
Moscow, Henderson is the un¬
challenged
Barney X Biruch ;

Index

19
State

Commodity

Hop-

19:

xxxx

Made

Debits

Building

in Washington is H-HHenderson to Hopkins to

Priorities
net

(The)'

Weekly

agency

Roosevelt.

Economy....
and

was

Bank..Statistics

the overall defense spending
R.

that

X X.

patent to everybody, that.

to the New Deal-

and from

for

Procurements

Dollar-

the

apparent to the closer obser-

in monetary
Above Year
Building Permit Valuations in July
Reports j
policies by the Treasury and the
Secretary of Labor Perkins,
i
Feaeral Reserve Board is in the
Page 20
offing.
/
XX A fundamental change in Gov¬
World Tin Production in July Below Year Ago Seven Months' Out¬ j
ernment financing tactics
is in
:
put is Ahead of Last Year.
'X
;
the making.

men

Mobilizing
Speech

For sometime it has been

•ers.
x

-of .11. S. securities.. v.....;X...;.Xl:';

a-Year

significance to every institu¬
tional and individual holder

the agitation has accomplish¬
ed its purpose: The complete

[

;

Farm

Output

Statistics

^__-_17-23

Gas

Utility Revenues
and Steel Operations—
Weekly Review

______

Iron

■. ■

_________

Lumber

-Production,- Ship¬
His rise in the New Deal, slow
Page 30
to make any de¬
ments, Orders
32.
at first, then by leaps and bounds,
predictions with any con¬
Nonrferrous; Metal
Market
Brazil Proposes Plan for Liquidation of Coffee Pledged as Security from an ordinary job with the
fidence of accuracy.
For the
Review
—25
for Outstanding Bonds of State of San Paulo 7% Coffee Real- Russell Sage Foundation, is one
chances
are
that
the
pattern
21
ization Loan 1930.
:
*
of'the country's outstanding suc¬ Portland -Cement Production
won't come out clearly until mid22
stories.
Henderson insists Railroad Car Loadings.—.:,x.X ■ .;Xx*
1 x/:r-"--x -•:iXx;';vx■ -: Page•• 19 cess
fceptember."
18he is no Leftist. :He once de¬ Sugar Marketing Quotas
Bqt here at least are the re¬
l.
29
A total of $12 railroads and systems show increase in freight load¬ scribed
himself
as
one
of the Tin, World Production
ports—for your information and
32;
most laissez fjaire members of the Aiigust Municipal Bond Sales
ings during week ended Aug. 23.
v
*
serious
consideration
between
Washington
Deal.' He X now - describes
Page 22 New
now
and the date that the first
^

'It's too early

finite

...

•

item breaks. >'

news

himself

U. S. Bureau of Mines reports that Portland Cement production and
i

The Reserve Situation

shipments continue higher than year ago.
•

lower

than year

ago,
To begin with, there's an au¬
thoritative story around: today Xy ''■. -xXXXXXxXXX :"XxX;;..that Secretary of the Treasury

Morgenthau and Federal Reserve
Board Chairman Eccles
solved

their

x, y1' xx

•

tinues above
'•v

year

:;XX.XXf x'X. X

ag©^

;

| ■/x:;:';:X'X.v"X'X

(Continued on Page 32)

•

as
^

These

"middle-of-the- President Roosevelt

World

Crisis

idealogical dis¬

.^25-28
nothing in Wash¬ Defense Production
ington these days.* It means lit¬ SEC Commissioner Healy on
Competitive Bidding
24
Page' 21 tle whether a man is a Leftist or
a
Rightist. He is a Bureaucrat Tax Bill reported by Senate

Stocks at mills 7.3%
/. ■
X-

tinctions

mean

______

Production, of bituminous coal and anthracite, for latest week

re-;

four-year-old fight

•

roader."

X.'-.

con¬

Page 22

■

PageX

...

■

FROM WASHINGTON

digging late potatoes, har¬
vesting rice, picking and husking
corn, preparing the seedbed in the
iPlairts. country for- ;neW xcrops of

fruit,

bond market has

30)

Page

!cqtton,;v cutting tobacco, picking

OurReporterOn^OTernments^

the

increase since mer, but the total volume

Committee
;
26*
and with a view to advancing
X
himself, quite understandable, he Tax.. Reserve* set aside by
-Corporations
^
—20
(Continued on Page 21)
,

Thursday, September 4, 1941

FINANCIAL CHRONICLE

;

' •• v

V..'.

•

ill"V '•

■■

•

Petroleum Products
Business activity

cline since

ODDITIES

It is pointed out that the decline will te
because industrial activity which

April.

levels in many quarters, is un¬
likely to make the usual seasonal gains/; The adjusted Federal Reserve Board index of industrial
production is estimated to have reached 164 per cent of the
1935-1939 average during August, a two point rise from the
preliminary index reported by the Board for July.
This
rise was due in large measure to the relatively heavy volume
of automobile production last month.
It is estimated that
output exceeded 200,000 units, production being maintained
at a high level because changes in models were limited.
-

THE

FROM

BACK

DEAD

material letup in retail trade

state that no

Observers

expected during the autumn. , On the contrary since
many elements are working toward higher prices, and since
there is no likelihood of an all-around wage decline, the
is

^Company

It is

familiar bit of "fireside

law" that
for

person

over seven

not heard from
by those par¬

years

alive, is

from him if he were

facts

pre¬

these

when

dead,

sumed

hear

would

ordinarily

who

ties

proved, his estate may

are

the

administered

Insurance V
' ,rW//.

the Dismay of an

Refined Products

/ *

Courts

The principal changes in refinery yields in June were an in-'
and closed as if he were known jcrease of 0.3% in gasoline, a decrease of 0.3% in distillate fuel oil, *
and a gain of 0.6% in residual fuel oil. * Tne changes for gasoline
to be dead, and if he has life in¬
and distillate were expected but the gain in the residual yield was
surance payable to his widow it
abnormal.
.//./.;■/.
' '
j '

usual

in the

collected

may

There may be unem¬
way.
ployment because of a shift from consumer goods to war
Jt is, of course, quite possible
orders, and there still are strikes in progress, but wage out¬
lays probably will tend to increase. „
, T^," ♦ M
// that, the absent one is: presumed
to be dead, there may even be a
//
This week the steel industry is expected to operate at
court order declaring him dead,
96.3 per cent of capacity, says the American Iron and Steel
the .widow
may
remarry,
and,
Institute, against 96.5 per cent last week, which is an indi¬
then the "dead" man return alive
cation of what the promise of overtime payment will do in
and well.
This situation has al¬
eliminating the usual holiday closings.,
• •
ready been exploited by; the late
The National City Bank of New York in its current
Lord Tennyson
in the familiar
monthly letter states that the boom in retail sales is an out¬
poem "Enoch Arden.""
V' .J ;
standing feature of trade reports.
In recent weeks it has
Now, suppose that the abscond-*
amounted to a rush by consumers to lay in supplies of many
kinds—not only durable goods, but apparel as well., v V* , er insures his life in favor; of his
f
One of the government agencies is said to have predicted mother, disappears, nobody hears
that 5,000 to 6,000 factories may be affected^by materials jfrom him ^
#djudges- him'
shortages, and Mr.:Henderson has stated his belief that the
greater trade activity.

chances favor

Crude-oil'

barrels, which was about 60,000 barrels above the average in May but
not up to the record months of March and April 1940.
The Bureau
further stated:
r
-V
V;
.•
/..
All the important producing States increased their production.
in June, with Kansas making the largest relative gain and Texas
the smallest.The upward trend in Illinois was resumed.
Even
Michigan, which had been slumping rapidly, made a gain in June.
:
Although crude runs to stills moved up to a new peak of 3,-*,
865,000 barrels in June, the gain in production and imports was con-"
siderably larger, with the result that about 3,500,000 barrels of crude.
iwas withdrawn from storage, compared with about 4,500,COO harrels //
an May.-;- Stocks of refinable crude on June 30
(259,075,000 barrels)
were nearly 3,000,000 barrels below the level of a year ago.
>V:

already at record breaking

During Mouth of June 1341

production continued to rise in June 1941, stated ther.
Bureau of Mines, U. S. Department of the Interior in its current1
monthly petroleum report.
The daily average in June was 3,834,200

statistical rather than real,

v-..

,r'^iv,-r:'r■;^,4?

;•

continues to hold at extremely high
levels.
However, it is expected that seasonally adjusted
business indices this month probably will show the first de¬

demand

The .domestic

for

June

fuel

motor

58,413,000

was

5% above: a year ago. .This comparatively poor
show ng for June 1941 resulted from a number of factors, chief of
kvhich were pre-tax buying in June 1940 and speculative buying over
ithe first 4 or 5 months of 1941.
Voluntary civilian curtailment may
ialso have been a factor. > Exports of motor fuel, exclusive of the
("shuttle" movement, amounted to 1,262,000 barrels, or only aoout
jbarrels,

only

and unfinished gas-,

jhalf the total of a year ago.; Stocks of finished
about 3,100,000

toline declined

barrels in June. This was less than
but stocks on June 30 (89,842,000

balf of withdrawals in June 1940,

ibarrels) were about 4,000,000 barrels below last year's level. Motor-ifuel stocks onl the East Coast were about the same as a year ago,
but it should be noted that developments in July and August have

days' supply in that area.

considerably reduced the number of

i;;v

Relatively, large gains in the domestic demand for other pro1940 were recorded^, kerosene being about the only

iducts over June

<*.'

v.;.;

(Continued on Page 28)

for,variation (gasoline is running :

jnotable exception.; The demand
;
'

collects the insurance money,.

Sugar Marketing Quotas Again Lifted

the

b ^ % The Department of Agriculture annbuiiced oh Aug: 29 that total
number of workers involved, and in part facing temporary
prodigal ^biows^iqtd town" some 1941/sugar marketing quotas: of the various. areas supplying the
unemployment, might exceed 2,000,000.
*
United States market had been increased from the 8,006,836 short
ikiej morning, alive, ;> weli,^rapd
f;
It is pointed out that this curtailment will not come unh
ilK
calling; f or ,food - and, Idrink/ .end tons,i:raw; value/ announced (Tuly1941, to .9,002,976 tons.
The quotas for the various sugar producing areas under the re¬
formly or overnight, or that it will necessarily develop more the town gossip reports the mat¬
vised figure compare with the former quotas as follows: :/
rapidly than the labor, or most of it, can be absorbed in de- ter to the insurance company.
* 4
*
f
"
Quotas Effective
Present
fense work.
It is further stated that in many cases manu¬
i
Area-•
'•
July 30,194f - . .;: Quotas r..
(Short tons, raw valuei
Can the company compel the
■H
facturers still have good stocks of materials on hand, accum¬
2,230,037
l,925,*99i'mother, -to return the / insurance 'Continental ^Beet:
/. 445,000 S
•445,0001
ulated during the last year, and these stocks will cushion the
.•Mainland '.-Cane.:
993,5221:
/
'

(

•

—

.*>

(continued on Page 29)

•

'■

money?

993,522*

Rico

Puerto

"That's

imagination

pure

couldn't happen in

—

real life," the

contend, but this ex-?

reader may

The index is built upon 40 basic commodities and
for each country in so far as possible.
Each

v; •

the list is the

commodity is
weighted uniformly for each country, according to its relative im¬
portance in world production.
The actual price data are collected
weekly by General Motors overseas operations from sources.de¬
scribed as "the most responsible agencies available in each country,
usually a government department.""
The commodities involved in¬
clude "a comprehensive list of several groups, including grains,
same

products, miscellaneous foods (coffee, cocoa,

&c.), textiles, fuels, metals and a list of other miscellaneous
(rubber, hides,-lumber, newsprint, linseed oil, &c.)."
Weights assigned in the index to the different commodity groups are
as follows:
Grains, 20; livestock and livestock products,'19; vege¬
table fats and other foods, 9; textiles, 12; fuel, 11; metals, 11; miscel¬

tea, sugar,
materials

S''i

laneous, 18.
The indexes,

which

of each country, were

(August, 1639=100)

•

■

based on prices expressed in the currency
reported Sept. 1 as follows:
are

Argen-

Australia

ada

land

Java

United

Swe- Switz-

yNew

ico

Eng-

Can-

tina

Mex¬

Zeal'd

den

erland

States

VI:

1940—

120

118

120

143

116

113

112

131

132

112

June

118

120

144

116

113

114

131

136

109

July

118

120

145

115

112

114

132

140

109

144

109

May

150

115

111

120

132

116

120

121

145

116

110

122

135

153

Qotober

123

122

145

117

110

120

139

158

114

November

113

125

124

146

118

111

118

142

164

December

113

126

149

120

111

119

144

168

150

rl20

111

119

144

rl72

147

171

119

118

August

September

120

118

114

127

February

114

126

127

150

121

March

119

122

129

150

123

114

119

April

121

131

150

125

115

119

May

126

120

134

rl52

129

117

120

133

121

137

155

131

119

136

120

142

158

137

123

January

_______

June

July

_____

113

119

: 120

120

154

176

122

156

180

125

156

189

129

121

155

193

13*

123

'156

194

137

Weeks end.:
rl33

July

Aug.
:

Aug..
Aug.
Aug.
♦

2
9

16
23
Preliminary.

___

123
126

121

141

rj.56

120

143

rl57

136
;'rl37

120

142 * *157

120

142

137

120/

142 ,*157

138

....

;»120

Revised

143

.*158

*157f'

154

♦194

rl35

156

121

134

136

c,—

134

rl56

136

—_

rl55

141

133

___

139

121

133

___

July 26

121

133

—

194

137

126

122

155

194

124

155-

194

137

138

rl23

123

156

194

graphs.

•

;4he insurance company,

for

the

137

/123
127

.138',.

1139

123:

,•

156

:*194
'

:i23"" 156

•T123

156

Wouldn't, let ,the

Court

mother hold thd insurance

man," the reader may con¬

live

clude, but, as a

matter of fact, the

decision was against

into

contract

based

have

parties

"Where

the company

retained the coin.

and the mother
;

entered

9,002,976

reallotted to other domestic areas and Cuba.
tops reallotted tp ; other domestic, areas and
"Cubft
'■ '
'
'
1 '•! 1 *.
'
•
. >
. 1 i ■/ 7 '
.* i''y .
tr n- .... '.I...,- .1.^- ■. t ■ ,1 .• f
♦♦Quota of 1,233,875 tons less 251,212 tons,'representing duty-paying-portion of
•
- quota, reallotted to foreign countries other than Cuba.
:
§ Quota of -566,038 tons lass 121,038 tons reallotted to other domestic areas and Cuba,
t Quota of 1,263,700 tons less 270,178 tons reallotted to other domestic areas and Cuba.

1,387,383 tons less 404,720 tons,
./reallotted to foreign countries

representing duty-paying portion of quota,
other than Cuba. -/'■•
■.'/•.•/'•vi" ~v.

quotas of^

^expected th6 Department sayi, fhat the total

vor

8,006,836

—

of 503,408 tons less 58,408 tons
Quota of 1,123,878 tons less 130,356

•.

in fa¬

"Well, the decision was

982,663d

2,750,431•;'440,804

t Quota

H Quota of

8,006,836 tons, announced July 30, would result in an available supply
to consumers this year of at-least 7,769,621 tons of sugar, or about. ..

1,000,000 tons in excess of 1940 sugar consumption. , While it is not /
present time whether the continental beet area, Puerto : V

known at the

Rico, and foreign

prevision will enable Cuba to
more.

T„

their increased quotas, the present

market in this country 375,609 tons <

mentioned in these columns

previous quota revision was

/The

Aug. 9, page

this year - :

countries other than Cuba will deliver

additional sugar as a result of

any

754..

arrangement

uncertain or continV

upon

gent events purposely as a com¬

promise of a doubtful claim aris¬
from

ing

them and

there is; no

of. bad faith,; violation
confidence, misrepresentation,

evidence
of

concealment,- or
able

conduct,

which

action

such
was

other :inequit¬
the

facts

upon

agreement or trans¬

I I Bank debits as

;

August

ended

27,

reported by banks in leading centers for the week
1941 aggregated $9,405,000,000. : .Total debits/

ended August 27, 1941 amounted to $132,594,000,^
cent above the total reported for the corresponding/:

during the: 13 weeks

000, or 31 per

period a year ago. At banks in New York City: there; was an in- I
crease of 30 per cent compared with the corresponding period a year/

reporting centers there was an increase of 31

ago/ and at the other
per cent.
/

SUMMARY

founded turn out very

137
,1— ' . v137

from

what was

;

_:".V

(In

> ,

DISTRICTS

FEDERAL RESERVE
millions of dollars)

TH-

.j.--.-. ■-

Week ended

ex¬

anticipated, this error,
miscalculation,
or
disappoints
pected or

Federal Reserve

Augi

District

ter of fact and

such

to a mat¬

not of law, is not

mistake within the mean¬

equitable doctrine as
the disappointed party to

of the

entitles

relief.

such 'classes t)f

agreements and * transactions the
parties are

supposed to calculate

//chances',.- .and /jthey

asume

rrce^tainly

the risks," said the; Court.

Aug. 27,

494

•

330

•

7.260

1,7,672

7,247

5,209
4,269

3,957
3,123

20,099

15,026

315

217

1,055

290

206

4.263

199

155

2,489

•231,

4.264

'; s

\TotelU274 Reporting
"

240

!-•!

3V2

City

Francisco

San

centers/^-

.Ne-w.-.Ynrk) .City

'V140 Other leading

;./!■: J: 133

5,445

9,672

1,453
.

Dallas

5; 654
41,402

St,- -Louis- .v---—----'7---

other

466
548

843

6,508

9,405 -

•

centers5*

I- -(■ 578

3,391

2,511

10,750

8,454

13^594

-t: 101,375

815

3,126
2,039
•

'/v* 3/322

centdrS

"1940

257

380

Chicago

Kansas

53,324'-

•

■"' ;r!

t'.Aug. 28,

499

738

________-

Richmond

1941

2,485

Philadelphia /
Cleveland

13 weeks'ended

)■

358

3,622

---

28,'

1940

519

York

the

Aug.

New

.Minneapolis^
any

27,

1941

Boston

ment, although relating

137

all

forth in the preceding para¬

set

r)36

rl26

•

"on

"imaginary" case

fours" with the

ing

1041,—

July
5
July 12

were

12,829
..

2,374,852
.282,859:

118

1941—
126

facts

—;

than Cuba

Foreign Countries Other
:
Total

the

differently
.

the

Court in a * case

Supreme

where

111

113

pOiht was passed upon by.

Iowa

livestock and livestock

■'

act

Islands

of, Philippine

Commonwealth

1,148,160

991,365
11,076 :
982,663**

Virgin Islands .c

Cornell University, which prior to the
European war had collaborated in the publication of a world com¬
modity price index, have resumed issuance of international price
statistics, but on a different basis than before the war. Instead of a
composite index of world prices, these organizations now are pub¬
lishing the information only as individual country indexes.
General Motors Corp. and

I V

■

48,497, '.'it

72; 791

•

* * i

^397./,;
'53,101^

11,305 H' < 8,876

■

ifiWWWWMSJU^ViCuMi

Volume 154

The
For

FINANCIAL CHRONICLE

Number 3976

Brazil Proposes Plan ;

Speech That Was Not Made

good while past interventionists in this country
in general and the conmientators in the press in particular
have been rather dolefully, not to say bitterly, complaining
that the American people have not been "sold on the idea"
that it is necessary for us to make the ultimate in sacrifice
if necessary to crush the German war machine.
In some¬
what more orthodox terms, the American people have, not
been convinced of the existence of danger to themselves in
sufficient degree to arouse them to give all that is in them
to accomplish this end.
Foolish people and some others
who should know better have been crying for an intensified

M!'."

campaign of propaganda and of stage management with the

arousing the American public as it is said they
Partly doubtless because a very large propor¬
tion of the people are wage earners in one sense or another,
and partly also without question because it has long been
evident that the groups which were, most luke warm-—as
measured in deeds rather than words—were those usually
called "labor," these discussions have in large degree cencame

tion

from time

time

of coffee

pledged as security for outstand¬
ing sterling and dollar bonds of

ment

plan

It is, of course,

easy

enough to assert, as countless

speechmakers did, that Hitler has crushed the so-called labor
movement in Germany, that trade unionism in that country
has been abolished and that long hours, probably in normal

of arduous labor have
been forced upon men and women en masse.
It is likewise
not difficult to-compare the present fate of the wage earn¬
er in Germany with the lot of the American worker and to
show that "the clock has been turned back a thousand years"
circumstances inhumanly long hours,

(Continue^

on Page.

27)

<•

•

ill Procurements I And Priorities if
wide-spread criticism of the defense program
should not deprive the defense authorities of credit for the
ndtable improvements being effected this month in procure¬
Current

class.

lowering the income tax exemptions
bring several million individuals into the tax-paying

If all these millions

gigantic Federal outlays at the very time when the national
safety demands that our resources be concentrated upon

tions for tenders

tional income have eliminated all

said
the
to

loan

;

for

retirement.

plan the Department
make the

000

armaments and at

total

Under

proposes

$600,immediately and a
$300,000 each month to
sum

available

further

Schroder

York

City
to
purchase
dollar
bonds, and 64.04% will be made
available

London

purchase
bonds of the sterling tranche.
;
The offer
inviting tenders is
subject to cancellation and with¬
drawal

time prior to ac¬

any

tual payment. From time to time
as

purchased bonds

are

cancelled,

pledged coffee will be released at
the rate of seventy bags of plant¬
ers
coffee per each $500 princi¬

pal;:: amount

bonds

retired,

which compares with the 85 bags

pledged to

now
■

each

12 months, at the
time the situation
sidered
made

the

$500 bond.

planned to ^invite
monthly for a period of
now

tenders

end of which
is to be con¬

The moneys to be

anew.

available

represent part of
of an export tax
the Federal Govern¬

proceeds

levied

by
of

ment

Brazil

coffee

ship¬

ments, under Federal Decree Law
No.

Nov.

also

13,

1937.

planned

to. utilize
part of the milreis balances now
blocked

with

Banco

time when

Schroder Trust Co., special agent
in
New
York,
and Messrs.
J.

soaring employment and na¬
justification for large re¬
lief disbursements, there is
every chance that the ruthless
pork barrel devotees in Congress can be effectively
squelched.
"

of bonds of the

This requires a mobilization, however, around the plan
of Senator Harry F. Byrd of
Virginia, just about the only
Congressman who sincerely seeks economy,, to cut the nondefense outlays sharply, by as much as
$2,000,000,000 a year.
Perhaps the most effective ; way of mobilizing taxpayers
around the

Byrd standard is to acquaint them with

a few
fiscal: situation.
Tax and
spending figures too often in the past have merely bored

of the facts

voters and

what

they

thereafter

about the

Federal

taxpayers alike, but the growing realization of
must pay next Mareh 15, and each March 15
should now finally make them
willing to listen.

Easily the most outstanding fact that needs to be driven
millions, yet a fact that all too few know, is
the steady uptrend of regular Federal
departmental outlays.
If all emergency expenditures of all sorts are
excluded, in¬
cluding defense, relief, and farm aid, the disbursements of
the executive departments, the courts, and
Congress itself
have soared alarmingly in the past ten
years.
Yet, despite
the crisis during the first two months of the new fiscal
year,
the regular departmental expenditures rose to
$158,000,000
compared to $152,000,000 for the same period in the preced¬
ing fiscal year.
home to the

Attention, Taxpayers!
Taxpayers should be made to understand that these
soaring outlays have absolutely nothing to do with defense
or relief.
Actually, during the first two months of the year,
<•

•

■

(Continued

Loan.
will

Any amounts not so used
on
deposit under

No. 2.

From half

dozen directions at once, both

Gas

Utility Revenues;
Higher for June Half

users

increased.

11.6

to- other

countries which

endeavors to group under the name
fresh examination in recent days.

5,000 factories, and 2,000,000

unemployment."
:
They are being cut off from their raw materials in two
ways.
Some of them have simply found that priorities have
face "priority

cut in so far

unable tp get
tal industry

ahead of them that in a short time they will be

the materials they need.' Others face horizon¬
cuts in their I output at; the s instigation M

President Roosevelt

quate and not at all in keepin, <$>the sweeping promises ana Americans
of
interests, privil¬
statements
made
by
President eges, opportunities and responsi¬

with

Roosevelt and his New Deal asso¬

The

ciates.

numerous

strikes in

key defense industries, and the
difficulties raised by the confu¬
sion in

priorities and defense con¬

tracts, present almost insuperable
obstacles to speed in this vital
task.
When this was pointed out

bilities.
Alluding to "enemies"
who, according to the President,
wish to divide

and conquer us

from within, Mr. Roosevelt stated
that
these enemies
know
that
"our

American effort

not

yet

enough, and that unless we step
up the
total of our production
and more greatly safeguard it on
its journey
to the battlefields,

Senator Byrd, the President
attempted a show of humor and
that
the
Senator had these enemies will take heart in
been "sold down the river," on pushing their attack in fields old
by

declared
the

matter

information.

Mr.

Roosevelt

and

new."

achieved

much,

have

said

already

the

Presi¬

dent in this

address, but he add¬
ed that it is imperative that we
achieve infinitely more.
"We axe
engaged on a grim and perilous
task," Mr. Roosevelt continued.
"Forces

insane

been let loose

earth.

violence

by Hitler

We must do

have

upon

this

full part
in conquering them.
For. these
forces may be unleashed
upon
our

Revenues from domestic complaints that the real bottlesuch
as1 cooking,
water neck in American production is /this nation as we go about our
heating, refrigeration,' etc., were on the desk of the President, him¬ business of protecting the proper
interests of our country.
0.6% more than for the corres¬ self.
The
v:
;,v'
ponding period of 1940;.:
President, Roosevelt discoursed task of defeating Hitler may he
There are a
Revenues of the natural g,as in¬ at some length on the question long and arduous.
dustry for. the first six months of defense production and re¬ few appeasers and Nazi sympa¬
thizers .who say it cannot he
amounted;, to $231,753,000, a gain lated matters in a radio, address

2;1%..
uses,

a year ago." Rev¬ on Labor Day.1 Much was, made
iridustpial. ^usjes in-' in this address? about the rights
cr^sed ^.^ wMle revenues from Of free laboring; men and, women,
domestic uses decreased- 1.4%* - - and- the interdependence among

qf;4.Q%£from
enues "from

(Continued1 on Page 23)

of "democracies" gained
Such aid, as Senator
Byrd and others have pointed out of late, is far from ade¬

praised
the defense
per
cent, while revenues from production and asserted that in
Today, however, many find that though their order domestic customers declined .5%.
many
respects it exceeds plan?
books are filled as far ahead as they can see, their stock bins
Manufactured gas industry re¬ and expectations.
But over the
of raw materials are getting low and the scarcity of raw venues totalled $200,009,100 for last week-end admissions Were
the first six months, an increase made by the White House that
materials are getting low and the scarcity of raw materials,
of 2.1% from a year ago.
Rev¬ far more is necessary than so far
particularly of the metals, is becoming so acute that within enues: from industrial users of has been accomplished or is in
a few
months they face indefinite shut-downs.
Various manufactured gas increased 21.0% prospect. No notice was taken,
Washington officials have pointed out that within a few while commercial revenues gained on the other hand, of the ftiany
men

officially

unofficially, the problem of United States aid to democratic

weeks at least ten industries,

continue

the provisions of said Decree Law

commercial

•••

Page 29)

Brazil,
representing proceeds of this tax,
as well as future
balances, for the
purchase, at a maximum price of
75 milreis per bag, up to a total
of 3,GQO,OOOi bags of coffee of 60
kilos each, which Will be pledged
automatically as additional secur¬
ity: for: the Coffee Realization

threat of "priorities unemployment," and second, at further
Domestic customers served by
speeding up re-armament by spreading the work farther manufactured and natural i gas
utilities
totalled
through American industry.
17,025,300
on
The threat of "priorities unemployment" or "civilian June 30, an increase of 528,900
over the number
reported on the
industry mortality" has become quite serious this summer. same date a
year ago,, it was an¬
It is probably one reason for the setting up last week of the
nounced on Aug. 29 by the Am¬
new
seven man Supply,
Priorities and Allocation Board. erican Gas. Association
Revenues of manufactured and
Up to this stage in defense, the sharp spurt in civilian buy¬
ing buying has kept non-defense industry steadily busy, and natural gas utilities aggregated
$491,763,000
for
the
first
six
producers of civilian goods have not been much interested months of 1941. This was an in¬
in getting defense business from the government.
In fact, crease of 3.2% from the corres¬
many of them have been glad enough to be f^ee of the red ponding period of 1940.
Revenues from industrial ! and
tape and complications traditionally associated with, govern¬
ment business.

Britain and

changes are designed to enlist a larger share of
American industry in the defense program.
This is really
a
double aim.
It shoots first at alleviating the growing
These

of the facts about the

are aware

Sept. 2 said:;
;
To facilitate liquidation of the
coffee,. the National Coffee De¬
partment today published in vita-

ment methods.
/

so as

announce¬

issued

For the first time since the start of the national defense

Finance Committee in

the State of San Paulo ?% Cof¬
fee Realization Loan 1930. In ex¬

plaining the

drive, indeed for the first time since 1933; there is a real
possibility of stopping the steadily ascending spiral^! Fed¬
eral expenditures for non-defense
purposes.
Several devel-f
opments strengthen the hands of the economy advocates, but
by far the most important is the recent action of the Senate'

(an

Henry

helpless people during the past week-end concerning
the present war and labor there was not to be found even a
hint of adequate understanding of the subject to which un¬
told numbers of speakers addressed themselves.
If the ob¬
ject of the stage managers and the orators was to set forth
in convincing and enlightening form the bearing of this war
upon the man who works for wages whether in this country
or any where else, then wholf program must be set down as
a dismal failure.
The real story was not told; the essential
speech was not made,
, j
Easy Invectives
of

National

•

Coffee
Depart¬
instrumentality of the
Federal Government of Brazil)
has proposed a plan for liquidament

ly chosen as a suitable occasion to launch a campaign of
oratory and evangelism to convert "labor" to the cause.
Precisely what effect all this will have in enlisting full support of organized labor remains for the future to disclose,
but the thoughtful observer can scarcely escape the conclu¬
sion that amid all the balderdash poured out upon the heads

The

Mobilizing For Economy

Liquidation

Co., special
;
*
...■■■» ,,
agent in London.
Of this sum,
about that Labor Day this year was apparent¬
35.96% will ,be available in New

£ tered about them.
; So it

for Coffee

purpose of
should be.

done.
They even ask me to ne¬
gotiate with Hitler to pray: tor
crumbs
from
his
victorious
.

(Continued on Page 20)

Thursday, September 4, 1941

CHRONICLE

FINANCIAL

->■

tag Remit VataeiioRS Rise
I Urge Industrial Corporations Reserve
%% fibcve Sar>3 falti Last Yea* "h More Liberally For Taxes Than Smaller Ones

July

Building permit valuations

during the corresponding

Large

;

shall do everything in our power
forces."

•

months

Half

$889,572,839, a gain of 26% as compared

preceding year.
Over the same
"period new non-residential buildings showed a gain of 44%, and
additions, alterations; and repairs a gain of 8%;'/'Yyte
Then noting this the Labor Department's announcement further
*said:-'):/.'.?■).*
)■ V'
..• > v/jyr,: vY ■>,J'■.'■71-^'»'!
first

Nvmber

of the

Reserves as Percentages of Income

1£ku

1941

Companies

Tv7?.7;777'

Before Reserves

aif

After

Before

1st Huif

Taxes

1941

-1940

...

■

permit valuations include contracts

in addition to private
municipal construction. "For July 1941, Federal and State
construction
in* the
2,120; reporting cities totaled * $36,470,000;
for June 1941, $70,928,000; and for July 1940, $63,438,000.. t!
Changes in permit valuations in the 2,120 reporting cities be-;
tween July 1941 and July 1940 and June 1941 are summarized

•

below:

' V

•

-7

-.fcvv"/-.

-"-v

Class of construction

'•>&

Change from July 1940 to July
V'
Excl. N. Y. City

1941
'

■

-•

95 i

;;

$10,000,000 or. more

41.0

24.6

47.7

24.1

34 7,;

47.1

26.2

47.9

25.5

21:

49.5

22.1

+! -14

55.9

29.3

51.6

26.7

_^i_i-.77
.f.

275;

Total
*

71;
57 i

$500,000

$1,000,000 --.J-...
$1,000,000 - $2,500;000 7
$2,500,000 - $5,000,000
$5,000,000 -.$10,000,000 vL™
$500,000

; and
<

than

Less
-

;
The Bureau's tabulations of
Awarded by Federal and State Governments

ciu,ooii.icaiion: * 7. :. .''t'-

xuwouiKf

first half of 1941

net income for

his Nazi
';v-. f--*-

and

Hitler

crush

the

people- when I say that We

ican

:'Y.'•■■

;Thrs address was preceded by

with

determination of the Amer¬

and

•

ci^rent year amounted to

become

They do, in fact, ask me
the modern Benedict

table.

industrial corporations set aside higher percentages of
Arnold and betray all tvat I hold
their earnings ior Federal income tax reserves in the first half of
dear
my devot'.on to our free¬
1941 than small corporations, according to a study of 275 company
dom,
to our_ churches, to our
statements by the Division of Industrial Economics of The Confer¬
country.. • This course I have re¬
ence
Board.
Seven companies which reported net income. after,
jected; I reject it again. Instead,
taxes of $10,000,000 or more charged off 55.9% of their net income
I know that I speak the conscience
before taxes to Federal tax reserves, whereas 95 companies which
;

in July 1941 were 9% greater than
month of 1940, Secretary of Labor Frances
\ Perkins reported on Aug. 30;
"This increase was brought about by
a
gain of 23% in indicated expenditures for new residential build*
ings, and a gain of 4% in the value of additions, alterations) and
repairs," she said.* " "Permit- valuations for new non-residential
buildings showed a deeline of 8% over the year period," Miss Perkins
reported net
of less than
off
stated, adding:
'
— "' ..)4:\.'"
v(vy\<,),;)[■ date of Sept. incomeBoard further$500,000 charged 7; *, 41%. Under
4 the
said:
: •
,
,/■•;^.7,-/77;
'
July permit valuations, however, were 3% lower than during
Although the seven.large companies earned 83%, more before
'June.- Two classes of building construction showed decreases dur-*
Federal taxes in the first half of 1941 than in the first half of 1940,
'•
ing the month.
New residential buildings declined 5% and additions, their combined net income after taxes and contingency tax reserves
alterations, and repairs 8%.
In contrast, there was a gain of 2%:
was only 14%, higher.
The .95 small companies, on t^e other nana
in the indicatedexpenditures - for new ,non-residential, buildings;
earned 93% more before Federal taxes than in' the first-half of 1940
These comparisons are based on information received from 2,120
and after taxes their net income was 51% higher than in the first!
identical cities with populations of 1,000 or more which reported to
half of the last year. )■";,■•'' ;:%v) 77.Y7 '
77*7 ' a y;
'7:7\;U-7'
'the .bureau oi Labor statistics'in July
1940 and June and July
All 275 companies charged off 51.6% of their earnings this year
; 1941.
The total
population of these cities was approximately
to tax reserves, as compared with 26.7% in the first half Of 1940
•64,200,000, according to the 1940 census.
.),. t..)
5
Earnings before taxes increased 82%, but net income after Federa:
During the first 7 months of 1941, permits were issued in report-,
tax reserves was only 20% higher.
The following table gives a com¬
ing cities for buildings "valued at $1,657,973,348, an increase of 29%
• 7
- ' •
7 ' 7./ .7
-As' compared with the corresponding period of 1940.
Permit yalua- plete analysis of these precentages: 77 COMPANIES 7 7
777 .7777^ EARNINGS OP INDUSTRIAL
rvrcencage Changes, Federal Income Tax
tions for new residential buildings during the first 7 months of the
First
•

F®reign Front
(Continued from- Page 19)-*

made last

formal cbmmentSi

less

oaturday before neighbors at

the

Hyde Park summer home of the
President.
On that occasion, as
all

others,

Mr. Roosevelt did

sentiment
the, United States
as in extreme danger.*; The dan¬
ger has
increased of late,, the
President said, without indicat¬
ing that this is quite possibly due

his best to stir up war

picturing

actions

Washington

taken

respect to Japan and other
countries.
Although; Americans
with

for peace, the final decision
might not be theirs, Mr. Roose¬
velt- remarked.
The comments
pray

made

over

the

sioned some

week-end) occa¬

comfort in Great

Britain, and a good rleal of cri¬
ticism
in
Germany, : Italy
and

Even in London, how¬
there were rumblings of dis¬

Japan.
ever,

Iflll Member Bank Condition Statement

content with the course chosen by

Government.
following will be . found the comments of the Board oi S* United ■ states noted-in par¬
British observers
w
)-<+23.0%"-l
+23.1% ->
7: Governors of the Federal Reserve System respecting the returns o:
New residential
;
7.6%
7
— 3.1%
.7;7- the entire body of reporting member banks of the Federal Reserve ticular that the continual assert¬
'New non-residential
—*7
+ 3 9%
4.1%
ions in official American quarters
'/Additions, alterations and repairs
System for the week ended with the close of business Aug. 27: *
y to the effect that Britain is fight¬
+ 10.8%
+ 8.7%
All
construction
7
The condition statement of weekly reporting member banks in
ing for America, as well as herChange from June 1941 to July 1941
101 leading cities shows the following principal changes for the week
All cities
7 :
Excl. N. Y. City
self ought i^ny to be follow¬
5.3%>'■).:,
5.4%';7C-'•) 'C- ended August 27: An increase of $58,000,000 in "Other securities" ed by full American participa"New residential —.7—•____—___
V
and a decrease of $63,000,000 in reserve balances with Federal Re¬
■77+ 1.9%.
7' « ■
+ 0.5%
New non-residential .7;—
—- 7.6%
7 — 7.1% .7:77-7
serve Banks.
■
'•
\
^
- - • '•» -.'7 ^°n t1? ^conflict. Supplies from
Additions, alterations, and repairs
.:
the,United States,, it was main¬
•j
3.4%
'
— 3.8%
' \
All construction
7-^
Holdings of United States Government direct and guaranteed ob¬
tained, constitute a "stream and
cities reporting for the first 7 months of
Comparisons in permit valuations in
ligations increased $29,000,000 in the Chicago district, $12,000,000 in not a river/'
table:
\77
:r ;v7'77
: -v ■
Foreign Secretary
1940 and 1941 are shown- in the following
the San Francisco district, and $15,000,000 at all reporting member
Change from first 7 months of 1940
Anthony Eden pointed out last
Class of construction "
\ •
to first 7 months of 1941
-7 banks,; apd declined $25,000,000 in New York City.
Holdings of Saturday that the output of war
All cities
' Excl. N. Y. City
"Other securities" increased $58,000,000 in New York City and at all
materials by the Allied and assov7.;i;77 ' +31.4% C:
■ ]
r New residential 7
-J 7; +26.3%
reporting member banks. «-v
,
•
- . •.
+44.4%
;
f47.6%:
4
.,->7
New non-residential
7A summary of the principal assets and liabilities of reporting
n3-? States, still including short
^owers»
"the
+ 1.1%
'
7 7L*.',-- ' +10.1% .77
7V
United
falls far
Additions,- alterations, and -repairs — 7.
member banks,; together with changes for the week and the year
+32.8%
+ 28.7%
of British needs.); The problem
Alb construction
ended Aug. 27, 1941, follows: Increase (+) or Decrease (—)
now has been
complicated addi¬
7; 7 I^IeW housekeeping residential construction forr which permits
Aug. 20, 1941
: Aug. 28, 1940
tionally, he said, by the need fdr
|
;7;., V:~ i. ;-77i/:7 77;i 7-;'.">'•*
7"r'7>'77'. Aug. 27,1941
were issued in the 2,120 reporting cities in July 1941 will provide
$7
j'
+ 4,950,000,000
supplying Russia, as well. . . .:) ,
+ 82,000,000
: 38,194
dwelling units, or 7% fewer than the 41,205 dwelling units Loans and Investments—total _.^_»___29,107,000,000 • ,+ 9,000,000
+ 2,188,000,000
Japanese Aggression
reported in the previous month, and 18% more than the number Loans—total LL—.__.__^„I..i.u.-A--10,697,000,000
....

All cities

.7.77 In the

•

—

„

_—

—_____

—

■

Commercial, industrial and agricul'7.
'provided in July 1940.
Dwelling units in publicly financed houstiiral loans
6,183,000,000
400,000,000
■i ing projects authorized in the reporting cities numbered 3,005 in
Open market paper
Loans
to
brokers and
dealers in
July 1941, 9,403 in June 1941, and 5,051 in July 1940.
448,000,000
7
securities
Principal centers of various types of budding construction for
Other loans for purchasing or carry437,000.000
whmh permits were issued or contracts were awarded in July 1941 7. ' ins securities —
1,254,000,000
Real estate loans
U:
werfe:
East Hartford, Conn., a factory to cost $1,229,000; Hartford,
43,000,000
L^ans to banks L—

3,000,000
4,000,000

1,720,000,000

101,000,000

+ 4,000,000

85,000,000

the Far East plainly hung in the
balance as debate raged in Japan

2,000,000

30,000,000
39,000,00C

respecting the shipment through
Japanese-dominated
waters
of

+
—

•

■

Conn., a hospital to

.cost $5,000,000; Camden, N. J.,

1-family dwell-

ings to cost $708,000; New York City—Borough of the Bronx, apart¬
ment houses to cost $1,037,000; Borough of Brooklyn, apartment

Other
Treasury

_____

loans

bills

notes
Bonds

Treasury

2,000,000

270,000,000

1,932,000,000
1,079,000,000
2,279,000,000

3,007,000

15,000,000
3,000,000

367,000,000

+
—

7,'934)000)000

16 3. ooo. nor
+

5,000,000

1,372,000,000

D^ons as to peace or war in

American
resident

supplies

for

Roosevelt

Russia,

studiously

avoided all reference to the Jap¬
anese

expansionism

his

ad¬

734,000,000
.+ 2,000,000
apartment houses to Obligations guaranteed by U. S, Gov't 3,316,000,000
dress on Monday, which condemn¬
123,000,000
+ 58,000,000
cost
3,802,000,000
$1,375,000, and institutions to cost $2,668,000; Borough of Other securities
ed roundly the Hitler regime ijb
816,000,000
—33,000,000
51,000,000
+ 23,000,000
Queens, 1-family dwellings to cost $2,109,000, apartment houses to Reserve with Federal Reserve Banks 7-10,633,000,000
Germany.
The conclusion seems
Cash in vault -U_—;__7——7_
553,000,000
261,000,000
—33,000,000
cost $1,795,000, and a school to cost $1,000,000; Rochester, N. Y., an
warranted that the President stijl
^Balances with, domestic banks l._
3,462,000,000
institution to cost $849,000; Philadelphia, Pa., 1-family dwellings to
+ 3,400,000,000
+Liabilities—'ft: ,777'v7-7 .77777:77
• ' •
—'2,000,000
24,453,000,000
+
91,000,000 ten r *lien?te. Ja.°an from the
4,000,000
cost $2,949,000; Chicago, 111., 1-family dwellings to cost $2,790,000, Demand deposits—adjusted
Time deposits 'i7___^_i-_-___-__7r__7- 5,431,000,000
+
56,000,000
+32,000,000
nn^tc ?°?-61
' and many re~
and factories to cost $2,226,000; Indianapolis, Ind., 1-family dwell¬ U. S.v Government deposits
584,000,000
^-77777)7. 77:-.'.
+
823.000,000 confirm thi'/ view.
coniirm this
™atic Ample card^
„neS°tiations
ings to cost $717,000; Dearborn, Mich., 1-family dwellings to cost Interbank deposits:-^
3,000,000
Domestip banks
r9,215,000,000 7— 2,000,000
53,000,000
now
are
held by Mr. Roosevelt
$943,000; Detroit, Mich., 1-family dwellings to cost $6,084,000; Lan¬
Foreign, banks
—629,000,000
or playing this
sing, Mich., a school to cost $1,500,000; Akron, Ohio, 1-family dwell¬ Borrowings '
:■—1,000,000
dangerous game
smce the economic sanction?
ings to cost $759,000; Cleveland, Ohio, 1-family dwellings to cost
$1,069,000, and factories to cost $2,107,000; Columbus, Ohio, 1-family
posed upon Tokio could be re¬
dwellings to cost $897,000; Euclid, Ohio, a factory to cost $2,184,000; Francisco, Calif., $800,000 for 201 units; and Spokane, Wash., $499,OOC laxed in the event of "sweet rea■ .^,7.7>7'^7/Vl;:,);i;f>\^.,7:,i
7:.
'Minneapolis, Minn., 1-family dwellings to cost $579,000; Washing¬ for 160 units.
S SVJ -he-Island EmSUMMARY OF BUILDING CONSTRUCTION FOR WHICH PERMITS WERE
ton, D. C., 1-family dwellings to cost $1,435,000, and apartment
ISSUED IN 2,120 CITIES, BY GEOGRAPHIC DIVISION, JULY 1941
p/n p
Bnta,n 18 leavi"S the
7 houses
to cost $1,700,000; Sebring, Fla., a flying school to cost
New residential buildings
tt
otern Government ' was
to;- the
United States Problem
Percentage
No. of
Percentage
$2,015,000; Baltimore, Md., 1-family dwellings to cost $1,439,000;
v>
■' '7 "V77 *
No.
"
change from new dwell- change from
/ Arlington
County, Va., 1-family dwellings to cost $681,000, and
4. .-'77: 7-7,77:'
°f
:7'> .7
ing units
rhf6 Jnain .by Prime Minister
5*
cities_ Permit
apartment houses to cost $1,061,000; Norfolk, Va., a storehouse to
June ■
July
July
June _July
Geographic 7
report' valuation
ihl At!1 «n
s radio report on
1941
1940^1941
19411
1940
cost $2,300,000; Memphis, Tenn., 1-family dwellings to cost $592,000,
ing
July 19 41
division
fnatrv fn
conference, r.Wash¬
and stores and warehouses to cost $876,000; New Orleans, La., apart¬
2,120
$147,189,509 — 5.3 +23.0 38,194 — 7.3
+18.0 ington is pushing the issue per¬
All
divisions
143
8,062,013 -—49.7
—17.9
1,769 —56.0 —28.1 haps
ment houses to cost $6,120,000; Houston, Texas, 1-family dwellings New England
fortuitously,
asf a''con¬
539
29,341,137 — 2.9
+54.7
6,847 — 8.9 +55.3
to
cost
$1,129,000; Burbank, Calif., 1-family dwellings to cost Middle Atlantic
472
36,539,560
—
.1
+24.3
7,507 — 3.7 +12.8 sequence of gasoline shipments fo
East -North Central
197
8,292,646
+16.5
+23.5
2,337 +20 8 +28.0
$890,000; Long Beach, Calif., 1-family dwellings to cost $588,000; West North Central
thp
TV0St0k' to a have pitch of
243
:
19,587,878
+ 6.2
+
.3
6,106 +17.1 + 5.0 the Japanese which high aroused
Los Angeles, Calif., 1-family dwellings to cost $4,151,000, and apart¬ South Atlantic
'76
2,780,947
9.3 —48.4
1,113 —12.2; -47.4
resentment and anxiety.
ment houses to cost $1,331,000; Oakland, Calif., 1-family dwellings Easts South Central
In some
123,
14,651,141
+82.6
+78.4
4,588 • +71.6 +72.7
West South Central ,r-_-7
last
to cost $691,000, and a supply depot to cost $3,668,000; San Diego,
104
2,955,089 —14.7 — 4.3
882 —21.2 '—17.0 comments
Saturday,
Mr
Mountain
223
24,979,098
—23.1- +34.4
7,045 —27.1 /+ 31.1 Roosevelt remarked that decisions
Calif., 1-family dwellings to cost $875,000; South Gate, Calif., 1-family Pacific
Total building construc¬
as to peace or w$r
dwellings to cost $570,000; Portland, Ore., 1-family dwellings to
tion (including alteramay not lie in
New non-residential
tions and renairri
American hands, and it requires
cost $632,000; Bremerton, Wash., a storehouse to cost $1,391,000, and
buildings
" ' ,"
"
Percentage
PopulaPermit
Percentage
Permit
a
pier to cost $800,000; and Seattle, Wash., 1-family dwellings to
change.from
tion
,

houses to cost

$608,000;. Borough of Manhattan,

—

■

—

■

——

______

•

_____,_

—

,,.

■

...

cost

;

$1,713,000. 7
.
7 ,7
7
Contracts were awarded during July

valuation

for the following publicly

Geographic

July

1941

division

financed housing projects containing the indicated number of dwell¬ All divisions /__
ing units:
Etna, Pa., $1,008,000 for 250 units, Mifflin Township, New England
Pa., $2,047,000 for 450 units; North Braddock, Pa., $864,000 for 200 Middle Atlantic
E. North Central
units;. Burlington, Iowa, $1,188,000. for 375 units; Wheaton, Minn.. W. Nor. Central
$2,200 for .1 unit;, Albanv. Ga., $297,000 for 100 .units: Marnn, Ga.,. South' Atlantipc
E.
Sou.
Central
$665,000 for 250 units;- Wilmington, ,N. C.„ $758,000. for 300.,units; W; Sou', Cefitral
Alexandria, Va.+$10,600 ior -4: units:. Norfolk, .Va., $1,084,000 for 300 Mountjj^n
—
units: Dallas, Texas. $750.000 rior 234'units:^ Mineral Wells** Texas, Pacific

$87.681,0C0
12,421.892

■*

Mont., $310,000 for 80 units; San

1941

$269,767,381
23,786,205
51,537,069

—7.6
+12.1

65,798.434
v.rl2,652.004

38,467,899

6,349,036
1,820.905' n .65.6; 7-47.718.326.403
4,^49,329 .+
1.4 —25.5
5,264,9.76
18,210.928
+ 26.4
—23.4
47,585,355

(

1.9
+144.5
—
5.6
+ 22.2
t-

—30.6
20,432.003
+19.7:
2,322,620
— 85.3 ^—33.3
15,419,212 Y4" ,42,8 r;+1-1.5
2.465,285
—
6.2
+94.8
13,129.871

$238,000 for 100 units; Anaconda,

July

1-10 of 1%

July

June

—

3.4
2.2

(census
' 0/ 1940)

1940

1941
—

—

' valuation

change frpm
June
July
1941
1940

■

64,199,841
5,674,100

8.7
(i)

+10.3

19,298,641

,'+21.7
-7-52.4 ,.+ 2.1
+ 13.0
:,,+ - 3.2

,15,372.195
4,786,275
5,798.938

—

4.9

7.4

2,096,051

—15.9

3.3

3,716."17

-+30.6
6.6,.—10.9

+ 24.5
■^
—

8.3

+ .2.5

1,439,881
6,017.143

Zif
realize
ern

imagfration to
® ^ St

that he had the Far East

problem in mind.

,,T.°h10 reports said yesterdav
+3Lfresh protests are being made
at Moscow and Washington res¬

pecting
gasoline- shipment*
Vladivostok, which Japan obviousiy believes are designed to aid
any. Hussiaii move
(Continued

Page 21)

Volume 154

■

FINANCIAL

Number 3976

Pcrllanri Cedent Statistics for Month of

CHRONICLE

President Telis "Home Clab"

Dangers May vV

Foreign Front

Mi^i^MoisThan'.AI'Slart-ofWv

July I94i ar.t! for CKonihs ended June 301941;

^■

•

(CqntinUed^ fromPage 20)

extensiorr

•'.f!

*pf r the' ' Axis

President

.Roosevelt, in an address to member^ of the against the Communists to the
The Portland cement industry an- July, 1941, produced 16,000,000
Far East.
Such representations'
barrels," shipped 16,687,000 barrels |from the mills, and; had in stock Roosevelt Home Glub at Hyde Park, N. Y., on Aug. 30, said
were made
last
week, without
at the end of the month -21,178,000; barrels, according to the Bureau it is
"very possible" that the dangers to the world "may be success, and there is no reason toof Mines, U. S. Department of the Interior.
Production and ship¬ even more serious" now than when the
European War began believe .that more notice now will
ments of Portland cement in July,; 1941, showed increases of 30.2%
in September 1939.
Expressing the hope that next year's be taken of the Tokio objections.
dnd 24.1%, respectively, as compared with July, '1940.
Portland
The American decision to send a
gathering of the club.members will still be a peaceful one:
dement stocks at mills were 7.3%j. lower than a year ago.. : ,1
r

rl AM4AP««aw4A/J
4la
military mission to the. Chinese at
President asserted that "ai<s>was
followed,
late
know, it isn't all in our keep¬ contained in the Associated Press Chungking
last week, by a general Chinese
ing.
It isn't all our v decision." accounts.' '(?:(((((''(;(■■
('■■.' attack
upon
the Japanese - ag ¬
Mr. .Roosevelt went on to read a
Here- we are in

tliA

the

The statistics given below are compiled from reports of July,

The mill value of the

half of

shipmenjts-^71,644,000 barrels—in the first

1941,'is estimated at $105,440,000,

". -T

•

V: !

you

received by the Bureau of Mines, from all manufacturing plants: " V

this

letter he received from

whom

•

described

woman

"an

ex¬

that

scene

gressors, and Tokio doubtless will,
connect
the incidents, however;

essentially a scene! of peafce.
( living almost normal | lives.
A

According to the reports- of producers the shipments totals for,
scene vthat I
ceedingly good observer" whose
Suppose1 could be
the -first hall of 1941 inciude approximately-3,018,000 barrels of -highhusband's occupation permits her : duplicated, not the home cliifc
early-strengih Portland cement With an * estimated mill value of to observe
things all- OVer the ; part of it, but the fact of the
$5,606,000.
!
world
in "Europe. and
Asia, v gathering, the fact of the gen—

Africa and South America.

[ ,' In the following statement of relation of production to capacity
the total output of finished cement is compared wiih~ the*'estimated
capacity of 157 plants at the close of July, 1941; and of 160 plants at

said, .explains
a
little bit of what is -going on
from thej standpoint: of one who
Has seen things: in the world at
firsts hand.
The President read

pie close of July, 1940.

•

B-Vy,:;

RATIO

•

The

month

Toe

,/
1

55.9%'*.

months

ended

r
>;>>:
:

ilN

CEMENT, BY DISTRICTS,

(In thousands of

)

;■■■?■,-

"y.-

■■

;

JULY; 1940. AND 1941

Eastern-Pa., N. J, & Md. '•_•

1941

1940

:■

■

;

Wis.; til., Ind & Ky.
Va., Tenn.,Ala., Ga., La: &. Fla.
Eastern Mo., la., Minn. & S. Dak
W. Mo.jJNebr.V Kans., Okla. & Ark;

;

1,022
1,272

.—

995

1,241
1,518

.1,667

970

1,260

1,000.
.

853

Texas
-

Ca.iiornia

;

,1,214

1,844

494

•

436

i-y.

Rico.

451

1940

■;

:.i

10«

•

y„_

„

474 :

560

47'" 1 *

-'jy

13,442.

16,000

12,290

______

Japan and the democracies. For

676

16,687

-21,178

dent Roosevelt and Prime

ties—including our own—if we
f think ( back—-what?—50 years--

( through

peaceful

Think

the

•

by exploiting .social unrest,
exploiting decent human prog¬
ress by the use of armed power

PRODUCTION, SHIPMENTS, AND SHOCKS OF FINISHED PORTLAND

*,CEMENT,'BY MONTHS,'IN 1940 AND 19«

-yr;

K'44

■

'r y

(In.Thousands of Barrels).

-yf ..'J.

Stocks at End

■

Production

■

-•Shipments-

O/ MOUtil

for

their

own

1940

)

-1941.

1940

1941V

1940

—right

ako.

aggrandizement.

1 Having

U941

seen. ;

ringing

would

ment

the

_____

—

shipping
about

all

problems

the

received

the Bureau of Mines from

all manufacturing

supplemented by estimates by. the Bureau of Mines for five
plants for the first six months. * They do not include the price of
containers nor do they include cash discounts wnere allowed.
The
values may be higher for certain States where some special cements
have been reported by producers in addition to t^e ordinary siructura,

people

for
FIRST

SIX

MONTHS OF

UNITED STATES

this

which
attain

can

''n.

State

■
,

■

Number of
shipping

'■

•

■

Alabama

.Calilornia

;

3,251,000

2,338 000

Ipwa

Kansas

'i.—

Ohio

;

Texas

-Other

•'

—-Li

States b,
*

;iy.

-VH--\-«V> 'i}' *"District

y'V:r

A'^fi..-Pa.,',N. -J,;^ Mdi;

W:-

•

3,303,000

•

19,796.00': 360.00C

3.865.00C
.

1. "26.462 OOf
; $105,440,000

gone,

long after there isn't

Vv'-V';

'v";y

Minister

the

saying it.

covered

.»

that

the -Prime

alty

and do it again.

the]

shows

and two more, until they
to eight.
;
the fellows at Swamp¬

added it up
And

■

scott

were

deluged

with

tele-;

from Washington: "What:
about it?"r-v 'x-.-v-^,(
They couldn't find me.
They;
couldn't find me any place near?
there, but they were kept up !
day and all night, trying to;

all

find

had ■» gone,
chief of their air

me—in'•Swampscott.

Minis-

party like this, just as we are
doing it today, just as we hope

year,

that

So this

week, I knew they had
working awfully hard—;
they had really had no holiday,;
and - that the
andTtold them yesterday down*
corps had gone, ( in
.Washington
that
t her e r
.

and the chief lord of the Admir-

jove,

They not only put and'
together, hut they put two

more,

hotel in
there was

this, lawn—will be able to hold

back

two

;

; will! all (come

press.

staff

; we

And,

gone,, and furthermore
discovered that their chief of

enterpris¬

grams

ter. had

(

mo-;

-value and the brilliance of a freer

way

Swampscott, where
good
golf - and
boating,
and
everything else, expecting to get
a holiday. And then some enterprising person in: England dis-

that

gone, and the chief of naval;
operations, and General Arnold!
of aviation.
They had gone too.

It happens to be

They- went

sea

was

sup¬

ment. And then some

ing newspaper man in Washing-:;
ton found that my chief of staff;

been

and somebody
real
imagina¬
intelligence.
They
put those—all of those four fel¬
tion

had

must

gone,
have had

—

lows

wouldn't be any news on Satur¬

day afternoon from what I sard
to

real

Well, I

newspaper

miles

—320
:

the borne

club.

you

see-

how my hands are tied.
I want:
to tell you all about the pro- ■

(

together, and they figured
gram.
I want to tell you about?
The President's address had to ( out that they had all gone.
Dis; ; Japan. I want to tell you about [
do, in part with affairs and in¬
appeared.; Well, they made e
the meeting with Churchill, and;
cidents, local (to the community as ;
great
to-do
about
it. i Why
I can't do it.
.(•
■
well -as to his? recent conference
should : all
these four; people
Among those present at thewith Prime Minister, Churchill of
l disappear like- that.
; gathering were Harry Hopkins,:
England, and to the activities of
President's
: So they put something about the
special
adviser;
the
press
in
seeking to keep
it in the paper and sent it in over all defense aid by the Uni-;
abreast, of developments. ',*_ ; /
; (
to Washington and some terribly ted j States,. and ■' Munoz
Mavin, i'
In part" we give the President's ii enterprising newspaper; editors President > Of1) the
Puerto Ricah (
} ','fby i^eY'det-Ar3j.i;icfa^oj IH'L Ky.. I/v;,- M-tna.'-Md.u MinriV Mont
address or inforinal remarks 'as
around the country began send- Senate! 'in^-V^VF.
Nebf:; N/ JV Dkla., oreg.; S:! D:, btahWa., Wash., W. Va., Wis., and Wyo*."
...

Home Club any more, somebody
in this township — perhaps on

--y-'V''V

Well, they couldn't—I was 300

tied is this—it's
This group of ole

disappeared.

;

•.

telegrams to tne boys of :
mine up in Swampscott. "Where's;
the. President?" "
'
v :

that distant spot in th*-

that's

pose

.Mussolini

ing

was to give them a rest.
And they went up, while people

said I

(Continued oh Page 22)

Grea

•

true, I did..

any

are

press.

i:
'

waters

Chancellor

Premier

throughout last week
at various points on the GermanRussian front, according to a spe-.
cial statement issued by the Ger-

Atlantic

a
"

everywhere
and live in

America so-that in all the years
to
come,--long after we have

7.509 O0f

2.606.000

are

V went to

hearts

-r-

peace

far

and

conferred

and very good friends of mine
writing for papers, taking still?
grinding out movies, who travei
with me all the time; day anc"
night.
And the' reason that I

is the only way

peoples

the

of the totalitarian;
States of Europe held,
their long series of

personal discussions.
Hitler

my trouble.
My
tied.: The reason why

hands

my
the

;

We all feel down deep in our
that we want to keep

4,488,000

22
•
,
13 961.000
- | $
19.451.00f
12 .y* 5.035 000
,
7.055-00r
Ohio, W. Pa. & W. Va.
*
18
:
" 6 277.000
" V 8 445.00f
Michigan'
,10
: ,3.824.000
ry : 5.120,000
Wis:, III.. Ind. • &
11
:
" 6 828 ooo
10-380.00^
Va„,Tenn„> Ala):. Ga:: Fla.; 6f,ta_,---_t.__^__c_
18
V : 9.446 000 v
14.185.00C
R. Mo., ja... Minn. & S. D."
i11
■
,4.504 004.
:
.
7 349 OOP
W. Mo,,' Nebr., Kans„ Okla.: & Ark,
12
;,
; 4.303 000,
1
6 614.00C
Texas
-,, • 10* >•,
4 592 OOO;
7 509.00C
Colo... Mont.,i U.tahj .Wyo., Jk Idaho
V 8
1.682.000; L ■:, ,-3,125.000
California
*11
-k9.18*.000" i
f
12 487'00r
Oregon & Wash..
uiy
9 V
1.824 000.
;
■ 3,360.000
Puerto Rico
185.000
•• •
3«0 OOf
r
*
,
; !
.
153
71,644,000
J . $105,440,000
/<•
,>
; -• !
;
: ■, ;■
/y
•
New> York. ,&

16.768 000:
71,644,000

153
■

4,731,000

5,120,000
•; 8.782,000
' 6-658.000

;

•

4,592.000

v;:

; / V-

that he supposed the
letter voiced "the thought we all
have" the President concluded by
saying:
'
"
"

12,487,000

185.000
.

seems

Prime

hands

Declaring

.3655,000
3,224.000

3.376,000
14,180,000

Pennsylvania.
25
Puerto Rico '
' r '
1
V • >;Tennessee.6
W

1,955,000

ty, 2,176.000
•
3 824.000
'
i 2,365,000.
-V • 4,797,000

VV 6

New- York

••

9,181,000

Michigan
-uL-i-«,
- - 10 /
Missouri •' -, ' 5-,V

Estimated
mill value

minois;L_--4

that

peace.
Quantity
(Barrels)

plants

;

because

them that

1941, WITH ESTIMATED MILL

VALUE BY STATES AND DISTRICTS

lieve in America- despite all the
propaganda that is fed to them
They; know they will never; be
exploited, by
America.
They
pray daily
that America will
(save itself by helping greatly
to defeat Hitlerism.
They pray

cement.;:-'V-^y.y^y.VV'Vy'-:':V>";y-s;-::;-y,::--V:;::y:;:":::v':":;,v
PORTLAND CEMENT SHIPPED FROM MILLS IN THE

not aware of what
stands Vfort They be¬

are

America

ducers

•

aggressor

another

program;
to tell yoC
of the details of our

Minister

leaders

ence,

program.

But here's

;;

who have suffered abuse whose

plants in the first six months of the year.
: \
1
:
The values (lo.b. at the mills) are based on estimates of pro¬

airplane

...

Jctoosevelt
Churchill
concluded: their Atlantic confer¬
Prime

and

very

Britain, Winston Churchill.
7
would like to tell you all about
those things:.
•
;

very,

Soon aiter President

i-the Pacific; to tell you all kind.?
( of-details-about those Very won: derful
days — tremendously in¬
teresting days—that I spent wit!

•

'.Kf

( and the tank program, and the

ducers

■[

•••:•

Hitler and Mussolini

thi?

year;.

,m> — —'

■

•

about

town; 50
,

■.f'( '-.y; •'(

<•» ••

think

this

discussions

Washington and Tokio on FarEastern
problems
continued,:
meanwhile, and it is earnestly;
to be hoped that they will suf- ;
fice to prevent resort to war.. ;

you a great many
! things, such as the—the develop¬

•• x -

and

Fed¬
Tues¬

The dip-«
between;

Vladivostok.

lomatic

improvements,

I much to tell

back

Now

•_

with : my own
eyes*; the
cruel
and
ruthless
6,205
9,021
7,984
January
25,759
24,416
3,893
y 5,041
'.sweep- of the
dictator, armies
4,907
7,456:
-25,894
• 25,307
February
i 8,345
i
Ma.ca
9,915
7,918
7,716:
26,118,7 25,98
10,596
^
through Europe iri the first year
10,043
1JL196
.4.0,829
Aprty
14,132.. -25,348 - 24,056
n^ff - T*"•lt f - - f--rr - TiTfi—
of the war; having contact with
14,732
12,633
16,048
24,758
13,206
a22,74t
May __L'r_
the expansion of that sweep to
al5,223
12,490
16,109
24,010.
a21,86S
Jtme
•L4>
*i wi.w
jl-JL u'Z jL—
13,223
:
13,442
16,687
22,855
12^290
16,000
21,176
July
Africa and Asia during the sec¬
14,018
21,549
August
12,712
ond year of the war—and espe¬
19,921
14,741September ________13,105
15,776
October
18,008 :
13,935
cially becausepersonal, prac¬
•*10,372
20,353
November
12,725
tical experience proves the point
8,192
23,379
December*11,195
—I know that'world domination.,
130,315
Total
130,292
including of necessity the Amer¬
: (a) Revised.,
; ;
,v;:Vyy.V'yV^::V;,y::y:;^
icas, - is
the
definite
planned
v:''
V-y;^
:
;
i.-.■ *
'•
'
purpose of the dictators
'The following tabic shows shipments of Portland cement from
domestic mills in the first six months of 1941 arranged by States so iy
Finally, i want to say to you
that in Europe or Africa or Asia
far as permissible, and by districts.
,
.;
; .
The quantities are summarized from monthly reports of pro¬ 4 there is not. a nation of those
Month

■

called/

"defense

not merely the physical improvej. ments,,(but
the whole of the
- They cannot see that the-Hitstandard of life, the way it ha:
lers_of. the: world are- Waging
] improved in this past 50 years
war

yyyiyyy.-■

Japan

for the proclamation of a";
zone".to include waters,

day,

>4>.4;::'4;y:;yi..;,y:

noteworthy that the

eration

*•,.>,

Minis¬

"obviously is diffi¬

>owerful Asia Development

occurrei

processes

that half-century.

cult.

!. I cap do that—-some of you car,
too—we look back and think oi

the changes that have

Churchill (

ter

;

of
Presi-.-

the conditions indicated by

of the communi-

any

inordinately proud Japanese,!
the other hand, acceptance

ytbmed.,

-2

^2,855

the

•

Total

where

today:

They < put; themselves in
3,959 Tj 3,9i9
3,078
; a
posture where they cannot
1,176
2,030
1,928
-- l;67l.v 2,281
42,556
squawk about, what they don't
- 1,058
1,929
2.021 &want to see.
They-go about their
: 1,905
2,305
1,97*8
the
1,725
1,713 M.362 : "daily - dozens"" ignoring
1,411
2 998 j 2.604
rthroatening heel of human be931 ' 2,082
;
' 2,029
ings who-want to destroy the
914 ;
tM>3
i
473
C 492
v- 435 ; freedom;-" the * normal
life — to
-1,8244 1,621 , 4956
? which" they^; have-Vbeeri
acOus..

291

realize - that •" many of I with the thought that . there are
tens of: thousands of other com-people in their unruffled
existence seem to have no idea ]: munities, that the people living
of- what hangs over their heads I in them are equally proud of

53d

420

1,244
y.

i_______

Puerto

ington and London for permitting
shipments to pass, and the;
alternative may be war between;
such

; > 749

837

364

Washington

Oregon

I have 1 normal American scene of peace
a
community we art
proud of, but alwa'y.

.1,165

& Idaho

many

1,435

1,007

523

Colo;, Mont., Utah, Wyo.

1,019

.1,116''-1,484
1,108 'S 1,746
1,143 'i. 1,348

''-oi-Montii

1941,

2,625

Omo, western Pa. & W. Va.
Mlcnigan.

VV-.

resort

Summer

these

"Shipments

2,176 a 3,045

"___

New 'Yor«-9t;Maine

for

seen

ope,-.

barrels)

1940

Press:v'^vluyV;:;

at ..this

•

months;
It i and in
terrifying, coming -from EUr- i mighty

Stocks at EM.

.JDisiriet :!*>

* may
be in reality.'
Japanese:
air
raids'
against Chungking were noted last;
Sunday, as an obvious counterstroke
to .the: Chinese
move.
f eral picture of the. country-side Meanwhile, the_ initial ( shipment; (
I could probably be duplicated ir
of
gasoline
moved
steadily'
! 20,000 ( communities.,
iq:. the through the Pacific to the appoint- •
; United. States.
On- a millior
destination (at Vladivostok, and;
if arms, ' With ' good roads
going the
Japanese authorities appear-:
past them, just like this some*
ed to be
profoundly perplexed
what
overrburdened road out
by the fateful decision which is*
|- there. !'
t;- i
•
theirs to make.
Strong induce-;
; '
In other words it is a natural
ments can be held out by Wash-;

Extensive

Production.
>

not

PORTLAND

JULY

\,«.vv

the Associated

■

J■'-•y

.............

ft .:;!y:■.

[

follows, according to

with my children whom

■y.-Av:j.■■■■-In,".':.;

iS.-y-; ;;ii

the letter as

59.3%
€>56.5%

'57.4%".

r. PRODUCTION? SHIPMENTS, iAND STOCKS OF FINISHED

April 1941

May 1941

•

58.*3%;

T »

...

";v'j

■

•

!, >*69.4%

74.0%

59J.6'

June 19*41

47.9%

•

CAPACITY

July 1941'
74l9%_ •

JHly 1940

PRODUCTION

op.

This

letter the President

remote -they

...

-.:

~-T::.

Thursday, September 4, 1941

CHRONICLE

FINANCIAL

table is a summary of the freight earloah'ings for
systems for the week ended Aug. 23, 1941.

The following

increases when compared with
v:T!v00;.' 'A'0;.0KV;

During this period 112 roads showed
the

(NUMBER OF CARS)

"*'•

:
'

Railroads
'

District—

Eastern

Ann

& Maine—

—__

St. Louis

Chicago

Y.,

212

:•

2,004
10,608

2 613

2,292

4,953

4,014 : :

2,329

2,182

2,444 r
378
38

38,255

9,550

9,286

1,224

.836

7,174

5,851

6,126

!481

331

360

1,600

8,657

'7,460

5,182

9.266

5,767

5,784

4,930

6,349

579

847

305

: 420

369

344

472

216

1,023

828

2,662

1,883

628

1,218

Calendar year to

date c
1929

1940

1941

1940

to
:

10,750

10,740

8,883

307,944

1,792

1,790

1,480

1,537

5,619

201,723

1,661

1,423

6,333

334 761

285.411

■:

11,023

13,960

1,327

5,239
64

659

657

5,329

5,009

10,222

3,946

4,242

4,470

3,479

181,618

151,319

137,944- ,208,221

702.)

page

statistical

and

161,353

(

1,1

——2

Lake Erie

1941,

„

ESTIMATED PRODUCTION OF PENNSYLVANIA; ANTHRACITE
14

■

Week ended

Aug. 23,

Allegheny District—

! 785

510

427

1,089

35,031

30,417

22,430

18,274

Creek

Buffalo
Cambria

6,725

6,033

4,505

2,537

Central

320

283

1.647

9.104

6,801

5,479

Jersey—

Cornwall——

; •

688

617

126

11,523

74
47

1,598

1,548

2,103

58,965

58,155

12,523

23,789

19.301

19,332

11,416

6,193

4,642

3,608

3,269

8,974

161,683

132.028

144,703

Norfolk

VhK'f; " i '.-0 \

32,792,000

32,919,000

31,152,000

156,900

200

66,400

3,850,500

1,389,100

933

11,067

"19,167

6,iiii

44,180,000

;

24,886

13,161

' '

20,111

6,276

4,526

4,759

4,441

51,942

49,438

1,763

59,091

21,200

Weekended
'

State

Aug.16,

•

1940

1941

■■

Alaska

18,402

A'A

■

Alabama

.3:' V

344'

346 "*

■

Aug. 11,

1939

1929

223

1923

& Western

Charleston

',v.7 164

:•••■ ■■> 457

Florida .'East :Coasti.h-^'-^---—'ui-lV—

•

Midland

Louisville

Nashille——wui—--

868 :

Savannah——21

Dublin

Nashville,

Chattanooga

& St.

1,072

;

Seaboard

Air

Potomac--—

Line-————222k

System
Tennessee
Central
Winston-Salem
Southbound

Southern

—

14,229.

.'■r'

•*'•••

•

106

493

429

962

1,150

7k-» 347

382

;

,1,305

District—

5,502

7,951

18,994

Chicago

Milw., St;. P. & Pac.-i__
Chicago, St. P., Minn. & Omaha.——
Duluth, Missnble & Iron Rmge;
Duluth,
South Shore & Atlantic.—

454

|294

146

.160

1,932

1,071

1201,224

101,177

95,558

89,138

68,602

'•*

;

443

& Eastern
—
Ft. Dodge, Des Moines & SouthGreat
Northern—
1—_r__——
Green Bay & Western-—^.—
r_Lake Superior & Ishpeming—
Minneapolis & St. Louis—V-—-----Minn., St. Paul & .S. S. M.——
Jollet

Elgin,

Pacific

Northern

...

23,103

21,083

'•;>

2.622

I'-'';:.-:

848

673

21,156

4,440

4,550

24,671

21,540

11629
A ; r 540

547

1638

491

,.i

3,028

3.083

2,415

8,561

■

3.204

•'2,143

■;.

517

'22 2-

Washington

——-——i—.

152,151

3,451

.*:-

667

"rjy. 75
y
*

■{■

1,780

States c—'—l

Total

■

3,855

Top. & Santa

2,543

*; 1,705

63.268

47,889

Garfield

■

Grande WesternLake—.———.
Fort. Worth & Denver City.__—___Illinois
Terminal————————
Missouri-Illinois.—i———L
- u——;;
Nevada Northern—-_.T——_u—
North
Peoria

Toledo,

Salt

Western.Pacific—
&

Southern

Pekin Union—_a—
Pacific, < Pacific)".:^u.—'

Peoria

Western—_:s„—

«>

521

462

14.666

14.753

10.701

8,112

2,423

2.209

1,818

1.043

13,580

12 281

11,794

10.704

8.964

3,067

2,480

2,434

2 941

2.686

862

Illinois Midland.-.^.—
Island & Pacifio——

& Rio
&

2,028

656

Chicago & Eastern Illinois—..:
Colorado & Southern
—
Denver

5,756

3,173

•19.192

Chicago, Rock

Denver

8.409

2,928

—

Chicago, Burlington & Quincy——
Chicago

18,984

3,028

3,346
Bingham

>•

•-648

729

1,627

802

1,277

1,979
1 102

1.969

1,323
11

31,022

629

723

,734
1(077

3,776

5.065

3,747

894

•

4,455
20

891

1,759

3,036
r

1,138

1,278

833

2,157

1,828

101 \

1,602

800

430

1,622

961

129

153

922

788

633

419

24.981

25,477;

all

Total,
a

283

0
•"•
.

457

-vi-L-.: 1

••

<■?■

1,984 v A

r2 :V-; 95
j-;-.-

♦

246
4'.

1,515

2,028

875
711,
■:All i
">V!X&

*■> 89

-,' ,'r-"

U*'^-

.'"V

519

"• »

871,

3,734
v.-116

232

1,882

634

/2d

•

,284

V: 26

854

•

? 308

Includes operations on the N;
B. & O. in Kanawha, Mason,

iPanhandle

*T0;550-r:>'8,915'v* '7152022
952 rv:,

.-41,837 )

7.372

1-650

by ever

■i-383?fc

9,867

1,072

•

1,£26

8;303

.j 10,786

13,464

jk 0.;Wirglbian;- K;'-8r M.; B. C.'& G;; and
and Clay counties.

.6 Rest of dtate, including vne

counties,

c Includes

Arizona

[California, Idaho, Nevada, and Oregon.Data-for Pennsylvania anthracite from pub¬
Mines'::'?.->e:Average ;,weekly rate for sentire -month.
«f Alaska, -Georgia, North Carolina, and-South, Dakota "included with '"other; Western States.',5
I* Less

the- Bureau -of

than'l,OO0.[tons.;'"■'*

longer any apprehension of*
victory over ; the United
Kingdom,: To the embattled Bri- :>•;:
tish

measure

American

-17,638 '

System:.

Utah—

—

adequate, the prospects of
rapid-increase are there. U Grave

problems^ iremain,>1'-and*

'-T

1466--

Vi" 2,139'"^

14,596

,14,957' %
352

210

1,948

:- 2,005

£»

f.Total———w

.129,310

109,040

District—

Southwestern

' y v.;

;

ican activity, for it is now gen- 7 .;
erally conceded that Britain may >7
be able to, organize a suffi- v:

^S.tates/
a

The third year of the vast con-*

•.

flict,

which, promises. to

? 11,945
^

9,205
;

'V 3,334

2,226

106,149 yy 72,309

53,826

Gulf

Coast

heavy British aerial attaeks 70
German ports;i and indus:
cities,"' and the various ,stra^-0.:
tegic points of the German-held
'
.

Kansas

Litchfield
Midland

Madison

Gt.

Louis-San

St.

Louis

Texas

*2,057

1,392

and

did

1,686

t! 1,984

2,577

1,82*

but

the

numerous

226

372

849

j i6i

520

1,054

1,972

less

-1,970

1,358

all-out

1,427

939

;152

188

389

296
;

252

373

,602

298

-2,670

4,031

17,268

13,978

13,263

.3,723
12,505

.129

142

.4,475

8,852

7,100

:<• 2.707

2,215

2,417

8,409

—_

Orleans..—

7,007

6,479

3,872

Pacific.—:

688

2,839

-.1,699

; 4,769
r.

;;

1,767

1,922
y 385
;
504

>2,102

3,874
;

Southwestern—
New

■-,.2,597

■:

Lines——

& Pacific—
Francisco

Acme

3,564

3,326

•

ago.

ceded

decisive;: and this
leads

problem

4,489

3,310

the

of such

118

"J 157

sign

Warfare

260

47.899

46,905

" 46,893

33.109

T«tal_
.

5,037
Ncrte—Previous year's

„S

figure

revised.-^

♦

Previous'figures.', k'GulfyMobile & Northern only.

For

Southern..

are

to be

2,765

cities.'-

;

times,'
at Hull,'

the

one-

that

likely7

being

there

the

effort.*
is

by either side.'

high

consider-"

invasion

moves

tne

con-'

automatically to

time

not

far

were

during
just

ation

-4,162

Indeed, it is now
military -experts

aerial attacks alone

1 114

than

116
4,508

war

common

2,127

:•

5.670

6,365

3,752

8,527

year

damage
airplanes

attacks

Falls

attacked

some

Nazi

[Weatherford M. W. & N. W.—„

Wichita

other' Reich

2;727

—-

Missouri" Pacific.L.

^Quanah

and*7

Germans

'1*236

;

establishment.:-' Russian airplanes :
joined, Tuesday, in the attack on'; ^7
The

,"2,535

—

Missouri-Kansas-Texas

truction resulted in the Nazi

299

squad-: ?' ;

by day and night, and much des-"

171

Arkansas

Valley.—L——a
Arkansas———.——A

Missouri

over

2,134

Oklahoma <te Gulf—
Southern-.—
&

Mighty

bombing airplanes '" "f
the English Channel *

-3,781

City

Louisiana

coast. ':

of British

151

Northern.——

Upon
trial

jL.ines.-_——r———

in by

.f ■■■■■•■

■:

less perturbing and difficult than
the first two years, was ushered

105

1175

;

not

Berlin

among

00
;;

Island———.1'

them may be that of all-out Amer¬

invasion

Pacific—

Western

from

soared
Pacific

aid

already has been -extended, and ' J
although- such assistance <is far. 0

rons

briioh

The

Bri¬
tish Isles still hold out and there
■

f 11,536

9,714-

•

Mineral,•" iaind .Tucker

Grant;

and

District'

/
r

dent effort-without military par- v;.

/t*-.*

ai.914

coal

lished -records

>'•'
-

4,* 2,227.,;;
'

/13
383

"^83^

'35

difficulties.

•

;

■

2,262

-",1,174 ; :2'% 2.87.

anthracite

•Pennsylvania

■Kansas,
18.176 !

22,608

Fe System.:.—1*

so.
4

*...

322

District—

Western

Central
'

390

coal-_l-_ V 19,740-'

bltuminous

International-Great

Atch.

...

If 2

-45

conflict.

•

Nazi

;-A: 21

A 1,730 Vv 2,645 1
104
;
130- V '120 y;: "'107
A 18
."■..24.
,
*■L, 9-s V .10

-AT19 ^ *4110

Western

Other

828

47 472VV

-646

y' 29.'

Northern b

2,751

5,373

115.884

138,048

VV49VA A

,.-xiv
20

A'2,658":

Virginia—Southern o::_ V 2,258V

.West;

Burlington-Rock
Total.

two

3,005

•; 422

*«-1,66-0

"V.V48 >

the

likely to be attended

mounting

169

4,586

2,248

268 j:

273

7,617

362

A--' 15

:r;.:

their Ital¬
in

unremitting

765
1

;*■ 6,692

744

635

10,310

11,917

,259

;

2.048

8.360

13,639

;

4,579

171
.

2.679

2.356

10,049

485

22,248

260
555

6,808 A

27,666

4,926 V
:•

.1,179
; :

9,802

27,219

■1

13,452, ^

756

•-

■

7.930

10,705 -

4,298

10,843

3.375 V L.2,726

2,631

20,825

\n 10.439

145

years

allies

The hold of the aggressors upon
almost a -score of conquered countries: is precarious, however, and

217

925

other

and

15,750

13,775

18,410

3.083

25,228

—

Spokane International—:
Spokane, Portland & Seattle.-—.

2:405;

iWyoming..

561

100

243

V: 25 V.

-i

ton the

Chicago,

1,363

*•440
,

112
*.

"-778 "

27 V*

■

•

V 2,678 4

Virginia

4,674
:

117

•

3,136

:6,085

8.904

& North Western.
1—
Great Western—A-V-':—-

Chicago

V 648

-r.

•

147V

20,660

•.*

968

277

868

.Wj

;; >214

Dakota

bituminous

Utah:

Northwestern

y-.

±2———2-2--2-:

1.216

1,404

19,659

237

2,524

1,476 7

■V

•

375

359

> 3 .3"5

2,895

3,020

'.
,

385

10,246

/VTotal.——

>20

^2-Z.-^22i-22': :

'Texas

5,473

865

24,591

South

and
-

Tennessee

.-,11,296

8,103

21,239
■

125 ;

•

f'M>

56'

___

(Pennsylvania

3,15'4

'—

lOhio

428

65i

3.765

—

North

1,684

1,921

■:

346 y

";i_LA __L

Montana

New...Mexico

■

Richmond Fred.

■

.i:; 1 479
i 404

:
—

17:

52-

,218

33,

181

108

'•

Northern-—.:

Michigan

719

-h

793

20,237,

133:.*

200
i406

Southern———-i-22v-

Piedmont

927 '

;

22,585

;

Mississippi Central
Norfolk

xl,450 "

,20,597

1202

126

,242

104
~

665

V-V

338

.924

222

Maryland,.:__ jjZ wLh, 'u. 2-2 -

24,787

•

Macon.

3,169
.

v-W

t; 826

2h8t'

f - - v#

■;.yv:50V'*

•

132

V
"

966
1

•

579

•■>-.

-I 26,529
.

610

393 :: ::V

665

4(288

_::r"

304

55.

28;, 1
1,360 :

Missouri

.Western

1,796

400

180

402 :

11,388
Georgia & Florida^.-——
Gulf, Mobile bs Ohio———A--—r
Illinois Central ■.Svstem—————

2,738

.> 314 *

and

Kansas

Kentucky—Eastern

1,160

«•

L568

•

4; 1,045 i '■'< 1,020
A 403 V

•

Iowa

-.2,913

3,771

390

1,408

'•

223

is?

& Southern———-——

Galnsville

1,416: h

1280

[■

8,724

3,620
>»..

h; 435

1,903
:

Greenville——C—C-V——

Columbus &

104 *
t ■ r.{,

____—_AS'i -AAA 2"- 446 u -'.1
30,

Indiana

6«7

A 5,49,3

Illinois :

1,463

1,814
1.078

Georgia and North Carolina__

193

6,710

558

3.948 :

•

! ,474

i -■

737
,

9,045
V

4,705

Carolina——

ciihchf ieid —'vx:-uyvi.u--—__
Durham

874

10.866

Georgia-^—

Ceuirai

Line

Coast

Atlantic

700

i 874

253

284

218

j 889

& Coast

Birmingham

»81

124

118

Colorado:

i 442

R.R.

W. P.—W.

Atlanta,

& Northern
of Ala.——

Tennessee

Alabama,
Atl.

Oklahoma

District—

.Southern

and

Arkansas

V;V.;? .i-.':

ian

397

.J1'

by the Germans and

313

••

plunge into Po¬
Sept. 1, 1939.

taken

was

Most of Europe has been overrun

average
*■

the

when

were

land

AVSyG / '-v

268

and

the battles to date is, of
bitterly obvious, but the
they are just as far
winning the war as they

from

Aug.

Aug. 11, Aug. 19,

Aug. V,

1941

gains

course,

based on railroad carloadings and river shipments
and

are

the

and

of the period of hostilities.

That the Nazis have won virtual¬

offset is that

1,419

situation

losses

subject to revision on receipt of monthly tonnage- reports ■irom" district
State sources or of" final annual returns from the operators,) are

5,264

Virginian.——:

natural tendency to review

2^,1

BY STATES

(In Thousands of Net Tons)

estimates

(The current weekly

11,719

21,300

the third year began there

the

4,457,900

was
v

25,883

25.316

were

war

ly all

and

War

of the European
completed last Sunday,

and

40,999,000

average

29,249

Ohio-——

Western-,——-—

34,645,000

928,000

ESTIMATED WEEKLY PRODUCTION OF COAL,

—

District—

Pocahontas

Chesapeake &

.977,000

1,115,000

111,930

Third Year of

■

Adjusted to comparable periods in the three years,
b Includes washery and dredge
coal, and coal shipped by truck from authorized operations, - e Excludes colliery fuel.

7,236

198.096

——

1-22,-——

;

Total

1,174,000

26,150

u-—

DaiW

5,736

—

1929

X,IS?,0,00

Beehive Coke—

;

17.251

2,132

———

44,477

14.528

1940

produc-

United States Total—

1,627

70,479

18.193

Reading Co
Union
(Pittsburgh )t—j
Western
Maryland—

j ' tion

2,176

90,097

System—-—

1941

1940

1,258.000

Commercial

■v

1941

and

Anglo-American conference
eight-point declaration.

Calendar year to date

Two full years

fuel

Iiery

43
3,222

little more
offset to the

attempted

Anthracite—

Penn.

;,#;,!:A48

125

778

rW,

•

16,031

603

984

Ligonicr
Volley
Long
Island
:
—-—
Penn-Reading Seashore Lines--.

201

237

'305

Cumberland & Pennsylvania

Pennsylvania

722

22-

Aug. 24,

than

Total, including col-

2,480
-0

1,650

;

———-—

New

R.R.

330

1,843

Gauley—

Indiana

1941

998

42,807

Akron, Canton & Youngstown*—
Baltimore & Ohio
Bessemer & Lake Erie

Aug. 16,

generally

garded

AND BEEHIVE COKE

tams)

(In Net

will

exploitation

possibility of fruitful,-

the

peaceful and harmonious collabo¬
ration by all the peoples of the
European .Continent in the poli¬
tical, as well as in the economic
and cultural spheres," the dicta¬
tors said.' The meeting was re¬

the

convenience

of 34 weeks ending August 23,

: t Sum

corresponding weeks of 1940 and. 1929.

and

8,426

5,979

comparison

historical

purposes

(Minerals Yearbook 1939,

coal

1,184

for

Includes

Bolshevist danger and

plutocratic

148,504

202,165 i

production of lignite,
b Total barrels produced during the week converted to equivalent
coal -assuming 6,000,000 B.t.u. per barrel of oil and 13,100 B.t.u. per pound of coaL
Note that most of the supply of petroleum, products is not directly competitive wltl.

8,029

"The destruc-"

European wars.

create

1,739

plan

dictators

two

tion of the

988

—

11,349

16,452
2,326

.■

spirit of close
des¬
European order
common

will, it was indicated, as
far as possible remove the causes
that in the past have given rise

—-—

Wheeling

•

1941;r
1941

7 '

The new
the

that

•/

6,368

41,463

52,244

41,985.

1,210

and

forge

Aug. 24,

Aug} 16,

1941

1
Total; including mine lueL~
Daily average
—1—:
t' Crude petroleum b ;i ,:; j:
Coal equivalent of weekly out-

12,381

examined, according to

were

tiny.

OF
PETROLEUM

THOUSANDS

OF CRUDE

All mat¬

conclusion."

successful

the statement, in a

coal a

Bituminous

212

6,235

Rutland

Aug. 23,

1,748

■

SL892

Pittsburgh & Lake Erie
——V
Pere
Marquette
——u_
Pittsburgh & Shawmut—
—
Pittsburgh, Shawmut & North.—,
Pittsburgh & West Virginia--—-—

PRODUCTION

Week ended

6,908

DATA

SOFT COAL,

PRODUCTION

COMPARABLE

WITH

1,424

8,253

2,432

Y,, Susquehanna & Western——

TON3

NET

1,853

2,535

/ 1,744

8,712

6,458

''..''

Lines—-i----—-

STATES

UNITED

ESTIMATED

2,886

and their

continue the war to a1

leaders to

comradeship

7,073

and
"per¬

were

by the unalterable deter¬

meated

12,851

8,712

N. H. & Hartford——
York, Ontario & Western—

3.536

15,711

1,792

3,233

Y„

New

194

187

248

appeared,

conversations

ters

the

discussed by the

mination of both peoples

The U. S. Bureau of Mines reported that the production of Penn¬

duration

and
were

dictators,

the

162

3,536

;

4,954

two

1,108

11,571

2G9

13,525 "

4,913
:

Monong&hela
—.
Montour—j--——"I

7,082

2,458

•.

7,377

1,290

■

2,071

•

8,631

375

1,442

•

York "Central

9,007

! 315

-i

2,634

417

in 1929.

political questions bearing on
.course

World War

sylvania anthracite for the week ended Aug. 23 was estimated' at
1,258,000 tons an increase of 84,000 tons over the preceding week
(about 7%).
Output in the corresponding week of 1940 amounted
to 977,000 tons.
>
,
i

2,373

■"

9,466

10,923

■

1,745

10,412

1,156

8,433

15,533

Valley.

New

200

2,509

5,392

the

1,234

260

13,239

320

•Ironton-^__r-—-Liner-------

Central——

•V'

•:

5,612

million tons over that

1,350
'■

■■

1940

1941

1,895

Western———i
"Lehigh & Hudson River—.
.— ;
Lehigh & New England
——.
Maine

9,972

Trunk

Lehigh

1,213

1,491

Erie--—Grand

1,448

7,053

Toledo Shore

1.U

.■

;

—.

Lackawanna & Western—
Mackinac—

Toledo

Detroit,
Detroit

724

7,016
1,728

1!,730

Indiana---

868

7,239

•

Louisville

Delaware & Hudson.
Delaware,

861

9,090

.: •

Central "Vermont—_l—.L

Detroit

•f

697

612

563

Connections

from
1039

___—

Ontoago, Indianapolis &
Central

1940

of the circumstances. All military
and

production since the middle of July. The average weekly rate of
output during the past six weeks, however, has been approximately
2-miIlion tons above that in the same period last year, and almost a

Total Loads Received

Revenue

10,750,000 net tons, approximately the same figure as for the preced¬
ing week, and in comparison with 8,883,000 tons in the corresponding
week of 1940.
There has been little-change in the trend of soft coa)

[ Freight Loaded

Aroo.;took^_r_-;---iu_;i-^r'r—

Boston

Total

1941

Arbor

Bangor

AUG.

ENDED

-WEEK

:-:/0

AND RECEIVED FROM CONNECTIONS

FREIGHT LOADED

REVENUE
V

■year1

week last

same

High Command. The Italian
journeyed over the Brenner Pass
on Aug. 24 for this meeting,
and
when the talks ended on Aug. 29
the world was informed briefly
man

Department of the Interior revealed that the total production
bituminous coal in the week ended Aug. 23 is estimated at

from Page 21)

(Continued

coal report of the Bituminous Coal Division

The current weekly

the separate railroads and

Foreign Front

Weekly Sea! OaJpa! Geiiiinees Above Las!
Freight Sars Loaded And Received
From Conneetioss During Week Ended Aug. 23 Years Figures During Week Ended Aug. 231941

Revenue

seas

the

background ' during
hays, obv bu^lv because *

{Continued;on'Pdgei23)

was

recent '

sink-"
<

;i7

for the Germar
revived if and
encounter ends.
Britain needs
and desire^
war
materials to enhance
Atlantic,

effort well may be
•when the Russian
That
more

against the Nazis wa?

effort

the

indicated, last Saturday, by For¬

Anthony... Eden

Secretary

eign

production

who called for greater

and the United
States. -Some British spokesmen
now call frankly for full military
Britain

both

States.

;

United

the

by:

'participation

■

-* /

Soviet Front

' r,

Time and the nearing Russiar
plainly are becoming ever
important factors in the wai
which the Nazi Germans extend
winter

Communist Russia on June

22, for reports of the fighting sug¬
gest that a decision may be lcnfc

In the center of the bat
tlefield of 1,650 miles stretching
from the Baltic to the Black Sea,
Russian counterattacks
held up
the Nazis in recent days.
At the
extreme northern
and southern

'delayed.

Reich

may

easily

the fierce and dog¬

turn out that

in the centei

push

Russian

ged

progress.

some

made

admittedly

forces

the

however,

line,

the

tips

determine
the
immediate
course
of the
entire
campaign
will'

the line to be

therefore

and

months. to

harsh

the

for

tablished

es¬

wintry

So sharp was

come.

Moscow claim¬

the Soviet attack,

ed, that German divisions had to
be rushed from occupied France
to aid the

exhausted Nazis already

German High
little about the
maneuvers
in the Gomel area,
where the Russians claim to be
Russia.

The

said

Command

advancing, but Berlin sources ad¬
mitted strenuous efforts by their

neither Ger¬
can be

Since

adversaries.

Russian sources

nor

man

fully trusted, there is a possibil¬
ity that the news is being some¬
what distorted or colored with a
view to inducing Britain
to at¬

of the Contin¬

tempt an invasion

Apart from such considera¬

ent.

is plain that
suffered
heavy losses > in their sustained
battle against the vast armies of
it

however,

tions,

# PROCUREMENTS! AND PRIORITIES n

unemployment—the defense authorities have been/ taking
some
decidedly constructive Steps this month.
.

have

the

aggressors

the

'•>

VfV' *•'

••

(Continued from

Pat/e

19)

Soviet Union.

„

refrigerators, and nearly 100 per cent in silk.
type of situation the defense authorities
have simply stepped in with a horizontal.cut in order to pro¬
rate the shortage throughout: the industry, with the added
possibility that the smaller units can be allocated a some¬
what larger proportionate ^share of output in order to spare:
them from premature drowning in red ink.
f;/
,
M
y J But whether the impending shut-downs are due to
spo¬
radic and unpublicised shortages or to .official horizontal
cuts makes little difference ;to employer or employee; in
either case' they- face: hard times in the midst of prosperity.
;7>
As a result, for the first time since the defense program
started, Washington is being deluged with frantic requests
.or relief from the economic'consequences of re-armament.
Mayors, city councils, chambers of commerce and labor or¬
ganizations are asking that, something be done to find their
people work. A resolution for an investigation was consid¬
ered by the Senate Commerce Committee on Wednesday,
and the issue has become politically quite "hot."
y.
On the other side of the picture, the defense program
has now spread out approximately to the limits possible
without a change in procurement methods*.
For various
reasons the first year of the defense program saw
a very
heavy concentration of orders. About half a dozen single
firms obtained nearly a third of all the defense contracts
jet; some .56 firms received 75 per cent of the total, and 600
firms got 90 per cent.
A huge backlog, of idle facilities,
sither carried .over from the pre-defense period or soon to
;o be made idle by raw material priorities, can only be tap¬
ped for defense by a change in the buying, methods of the
Army and Navy.
Up to the present, there were numerous good and valid
reasons for the recent buying methods.
The services found
it easier to place a few large orders than to place and super¬
vise a multitude of small ones.
During their previous
in mechanical

In this second

...

of financial drought they had done business with com¬
paratively few firms, had learned to rely on certain of them,
and so preferred to continue doing business with them rather
than shop around With unknown companies.
Moreover the
system of competitive bidding, developed to avoid the costplus scandals of negotiated contracts 25 years ago, contrib¬
years

-.the

sector

appeared steadily to be

drawing the: net tighter--around
the
vitally i important
Cityof

Leningrad, which Russian military

spokesmen
admitted ten days
ago-to be Seriously threatened*
That the Moscow-Leningrad Rail¬
way

has been cut is no longer dis¬

From the north the Finns
Karelian Isthmus*

puted.

drove down the

.and last Saturday

considerably more

"scheduling" of raw materials.
Charges are fre¬
quently heard that armament companies, and even the armed
services themselves, are using loopholes in the priority sys¬
tem to pile themselves up inventories of raw materials in
excess of their scheduled requirements, "just in case.'-'
The
cure for this, unfortunately, means a more careful system
of official scrutiny not only of who gets what materials, but
how much.
This is already in effect in aluminum, where
the principal supplier must make detailed monthly reports
of all deliveries, so that the authorities can tell whether the
priorities privilege is being abused.
Another step was tak¬
en
recently in General Metals Order No. 1, stipulating that
certain

tories

consumers

scarce

metals shall not increase inven¬

"beyond the amount needed in the normal operation

of business."

And further

being prepared. The
supplies go further,
either to more defense plants or, if there is anything over,
to non-defense industries badly in need of a few pounds or
tons of some scarce item in order to keep plants and men
occupied. '
'
result should be

make

steps

the

are

scarce

A second type

the

of change involves sub-contracting, which

achievements

in this

direction of such firms

Pratt

Whitney, Sperry, and Allison indicate can be much more
widely practiced. 7 The British have developed a good deal
of favorable experience in this line, and the automobile in¬
dustry is reported ready to sub-contract as much as 45 per
cent of its present backlog of
$2,000,000,000 of defense
orders.
'
The Defense Contract Service of OPM has been lifted up
to

authority.

Contracts Over $50,000 must

the percentage to be sub-contracted or "farmed
those over $250,000 must give this information
As Mr. Knudsen said at

v"We try
same line to

from

recent press

now

state

out," and
in detail.

conference:

experience with other firms in the
see whether there is a
way to get them to in¬
crease that ratio, see? ^ Say we have two contractors mafeing a 9-cylinder engine. • If one has got 20 per cent (sub¬
contracted) and the other has 40 per cenf, we will go to the
fellow with 20 and say, will you give us 35."
our

Prime contractors
due

are

to be reimbursed for added costs

sub-contracting. They are to be given bonuses if
uted to this concentration of business; certain companies
they can achieve earlier delivery by sub-contracting. The
could do the work cheaper because they were big and be¬
use of
"key sub-contractors,": making a specialty of sub¬
cause they were familiar with government requirements.
contracting, is to be extended.
-'
1 The defense authorities tried valiantly to encourage sub¬
Other changes are intended to make it easier for small
contracting, but with little success; out of some $2,500,000,- firms
and those heretofore unfamiliar
with government
000 of orders recently placed, only $26,000,000 was sub-con¬
specifications, to handle defense orders.
Performance bond
tracted.
.

requirements are to be modified.
Inspection at plants will
Undoubtedly some of the current complaints and forespeed up payments.. Calls for bids for large quantities are
warnings of "priority unemployment", are considerably ex¬
to be broken down into optional smaller units to let the
aggerated. The American Federation of Labor, for instance, smaller fellows bid.
Where i possible, specifications are to
warns that by October first" 1,500,000 men will be out of jobs
be relaxed and tolerances lowered.
/;
.
•
•
in the metal-working industries alone, and other labor or¬
Negotiated contracts are to be permitted at prices up to
ganizations'have mafeeyei&fyrbad^
15 per cent above going rates* when approved by Defense
ities are not shutting materials off'that fast, and new de¬
Contract Service, so that defense work can go out into com¬
fense orders are still putting fresh men to work by the thou¬
munities which without it face early - shut-downs for lack of
sands.
Social: Security^Administrator McNutt estimated
materials.
Arrangements are to be made for local manu¬
recently that defense would need 487,000 more workers by
facturer "pools" to bid on work which can then; be
spread
the first of October; .and while it-is estimated that the cur¬
. 7;Vv7;
rent program for: automobile curtailment will cost 90,000 among different shops owning the necessary, toolsj ;
These local pools have been in formation for some time,
jobs, three large • defense IpIahtsMn Detroit will shortly
be taking on from 46,000:-to 150^000 fmen, with additional many of them instigated by the National" Association ;of
V

■

northern

the

preparation for

meticulous

Germans

First of these is

r
-

.ings of merchant ships occurred.
It may be tqo early, however, to
claim the winning of the Battle
the

i
'?■ ■?

(Continued from Page 22)

CHRONICLE

FINANCIAL

Number 3976.

Volume 154

took the City of

■

thousands to be added

Viborg, which they had surrend-

over

the winter:J

Nevertheless, the problem is

real and

Manufacturers..

-;
a

serious

one,

In addition the defense authorities

are

en¬

couraging "defense clinics," where small would-be defense

contractors can meet the representatives of the
large prime
expansion and the need for alleviating contractors; such clinics have recently: been held in New
York, Brooklyn, Hartford, and many upstate New York cities.
t-iat the main waterworks of the now
has,sizable •<;, contingents
In; addition, the U. S. Census Bureau, under the di¬
mors
circulated for a time that city have been taken.
"lose to the borders of Asiatic
The diffi-.
rection of the defense authorities, is now taking a census" of
peace might be restored between culty of- the Russian supply prob¬ Turkey.
These forces emphasize
Russia and Finland. ' These
ru¬
lem. was illustrated, by. the un-i sharply :.the
diplomatic tug-of- the facilities of 65,000 small manufacturers to make avail¬
mors'.were quite circumstantial, heralded arrival at Nome, Alas-; war * which now rings Turkey able a pool or file of information in
Washington of where
and the United States Ambassa¬
No matter what the work can be
ka, of two Russian airplanes bear-; completely.
placed, similar to the pool of registered skilled
dor to Britain*..John G. Winant
!ng 47 - Russian; military experts Turkish" decision may be, howand semi-skilled available workers made last year
by the
.was. said
to be an intermediary. on their way to Washington.^
: ever, the fact remains that Bri¬
U. S. Employment Office, and the pool of information on
tain and Russia
But; the Finpish
now
have
as¬
General, Len- '•:^vV <;§ v*V.:i;-.7y.
nart Oeseh, maintained ,on Mon^- V. '«>- *. i Middle Eastern,,Crisis •- t. J sured a supply line from the Per¬ scientific
specialists built up by the National Research
Russia last year.'

Much re¬
joicing was occasioned in Finland
by this recapture,
even
though
Viborg was devastated, and ru¬
ed

and with the

prospect of killing two birds with

one

stone—

the-need for defense

■■

day that the .struggle must con¬
tinue,
Reich forces captured the

•

Although British

and. Russian

have, fortified their
former Estonian capital, Tallinn, holdi
upon
the- / Middles East
last Friday, and Russia admitted through the conquest of Iran, the
the. loss yesterday*.
Baltic Port danger of a more widespread con¬
and other towns also fell to the flict in that region, is not yet sur-,
advancing Nazis, who claimed the mounted.;.* In the unlikely event
troops

now,

43 Russian merchant
ships and 17 Russian warships in
'these, actions,/; which -completed
the German
investment
of the
sinking

Baltic States. At the southern end
of

the

sians

tremendous

claimed

the

line

the Rus¬

establishment

bridgehead over the Dnieper,
but the Nazis scoffed at such re¬

sian

Gulf

which

doubtless'

will

play an important part during the
forthcoming campaigns. Slim as
it is; this supply line may prove
vital

with

to. the

Russians

Nazi

Germany

the

war

continues*

This meeting took place at Sinneh,
early German victory over Iranians to the Anglo-Russian in¬
Russia, the. Nazi^r :an be expect-: vasion ended-quickly, and by last
ed to drive-toward Iran over the Monday a junction already had
land route; '.*, More
immediate-is been effected of the British, mov¬
of

„

the problem of

Turkey, which ap¬ ing from the south, and the Rus¬
pears to be subjected-to extraor-* sians,,/moving from
the north.
dinary
pressures • from ; London This meeting took place at Sinneh,
and Berlin, alike* < Heavy concen-: in the western part of the coun¬
.

trations

troops have! try. Outlines of a working agree¬
recently • on- the ment between the Iranian author¬
siege, . but-soon may fall if there border. of European Turkey; and! ities and the Anglo-Russian forces
is truth in a new German claim it is no secret that Great Britain 7777 (Continued on Page 24)

ports*

Odessa

remained

under

been

German

reported

Council.

Lastly, the so-called "Buffalo plan" is being pushed by
OPM.
Under this plan some 2,300
men released by the closing of a Chrysler automobile
factory
are to be re-trained under a program sponsored by the lccal
employment services and the personnel managers of defense
plans, in and around Buffalo, to be re-hired in these defense
plants when the training is completed.
7 ;
It is ironic that after the government for many years
has been favoring little business at the expense of big
through the tax and anti-trust laws, and in fact has been
trying to "atomize" or "pulverize" big business into little
ones, it should now find the gearing of little business into
the defense program so much greater a problem than the
gearing in of big business.
7
"
the

Labor Division of

FINANCIAL CHRONICLE

,24

Thursday, September 4, 1941
and

Foreign Front
'••

•

(Continued from
i

...5

■ 'I..

.I.ff.j,

reported

were

•aday,

Page 23)
'W

•

.v'.V..

>
V.

London, Tuesnearing completion.

Franco-German Collaboration

dissidents

the
interMar¬

side.and by numberless

aral

shal

Henri

the other,

Petain

Philippe

endeavors to

find

(continuing the

some

still
of

means

hold o:'

precarious

;his regime in Vichy upon France
The unrest prevalent in both oc

zetipied
and
unoccupied
France
plainly, has reached the breaking
point, with drastic action to be
•expected- if disorders continue.
Other

which

countries

the

liberating influence of our competitive bidding Barrel! stock for Russian oil drums, however, have been given an
enterprise and competition in a field A-l-A priority and the material; allocated to several sheet mills,
which has long been characterized by concentration cf the constitutes a "rush shipment."
(Already exercising stnet control
over plate mill rolling and shipping
schedules, the OPM is expected
management and underwriting of new securities in the soon to extend
this treatment to structural steel products and pos¬
hands of a few firms," it was asserted on Aug. 28 by Robert
sibly hot rolled bars.
Practically all pig iron shipments in Sep¬
E. Healy, a member of the Securities and Exchange Commis¬ tember will be for defense
projects. '
sion,

addressing

Nationa l

the

establish

precedents for

OTnuch of Europe in t" ese d fficult

Almost

/times.

has

since Marshal Petain

/gone by

fuIL month

an¬

"collaboration"

nounced

i-Berlin

the

with

the

vague

hinew order" of the Nazis.

Such

Government

•collaboration

still

remains

however, and in the
^meanwhile objections have reach::
nesl the point of Bpen revolt.
This
isslhe only interpretation that can
lie put
upon
the shooting and
wounding- at Versailles, Aug. 27,
established,

-atf Pierre Laval and Marcel

fby

Paul

Communist

alleged

the

Deat

Commissioners
Advices

Minn.

.he

St.

from

St.

Paul

Tribune"

Yoik'"Herald

New

Paul,

thus

quoting Mr. Healy like¬
wise reported him as saying: • • /
.n

"Since Rule U-50 became effec¬

issues

dise

ittoe situation. Marshal Petain an¬

that the Le-

nounced last Sunday

^ion of War Veterans will be en¬
larged
and
will
carry; on -in
Hrance the necessary political ac¬
tivities.
Whether tnis delegation
•sett' power

to the semi-fascistic Lewill tend to quiet France
iseems doubtful.

jgion

-J8L Y. Stock Exchange

Weekly Firm Changes
'

The New York Stock Exchange
announced

weekly

"Thomas

jproposed
ick

following

tne

changes:

firm

«v

has

Barcsch

; o

been

alternate for Freder¬

Hard,

under Section. XI,
will be consid¬
September 11, 1941.
-

j&rticle II, whicn
ered

Transfer of the Exchange mem¬
bership of Sheldon T. Coleman to

Thomas Jordan will be considered

September

15,

the

traditional

Am¬

of the Sherman Act,

/he Clayton Act, and the Federal
Trade Commission Act.
All of

suppress

competition, the
that

fundamentals

and to keep
/

"These

endangered." t The adoption

backed

1941.

was

Goldstone

will

September 11, 1941.

$Dean Witter & Co. will continue
«as
>

Exchange

William

member

Sheffield

firm.)

Cowles

gen¬

eral

partner in Wood, Walker &
to., New York City, became a
fecial partner August 30; 1941.
David
E.
Levey,
Exchange
member, retired from partnership

iin

Bernard

Goldstein

iNew

York,/City

3Ust.

The

Btock

dout

firm

has

Exchange

will

retired

member

continue

Co.,

August

the

firm,
securi¬

ties business.:

Harry

Rice

Kimbark, Chicago,
partnership
in
'Harris, Upham & Co. on: August
from

-withdrew

'36th.
-

;■

Haul

Brady

withdrew

from

X. S. Kerr & Co., New York City
aas
of August 30th.

iAuchinclcss
SYerk

Coleman, New
dissolved as of Au-

City,

36Bst 20th.

■

'<$?. H. Prince &

dissolved

I.,

Co., Providence,
as cf June
17,

2941.
E.

JEdward

ipartner-in

Adams,

special

Hut ton

Co.,
died on August
:23rd.
/ •/ ':•//■■'■■
■/■>'•
'Philip W. Rufese-11, allied mem"New

York
.

City,
-

ifeer,

Merrill Lynch,

iTjer

sdied "

Beane.

Pierce

Now .-York

August 24th.

FenCity,

;

„

••

Is- :i

Fabricated

emptions,^competitive bidding in

City, Utah,, for a small arms plant for Remington Arms Co.
tons for a foundry at; the Ford River Rouge plan New
Structural, steel projects, of 25,750 tons are slightly higher than last

the issuance and sale of securities

week's.

of registered gas and electric pub¬
lic utility holding companies and

their subsidiaries.

and

St. Paul, Mr..

tons

representatives

are among; underwriters."V
the foundation stones of our dem¬
The account of his address, in-

week
month

One -year

Let: the "Times"/Continued: ' - / r
"With respect to the formation
thought that Rule U-50
of syndicates to bid on securities
merely a matter of business
of capitalism.

procedure.

(Continued

Page 26)

►./.•■2'2.

The "Iron Age" in its issue of Sept. 4 reported that a long, step
toward unification of U. S. defense efforts was taken last week in
the President's

third shake-up of the government's defense machin¬
At first glance the reorganization represents progress for the

ery. -

deal and

new

setback

of industrialists who .15

months

ago

were

1939

„•

A?U-fir.*'>-Xolo
i
Sep
2
2.3Q467C. Sep
2i
Jan.' 2 -2.24107c. Apr 16!
Jan «-32.26689c.'May 16'

/}<•*
•
High
1941' -U2.30467C.
1940

,_2.3Q4B7c.

1939 —2.35367c.

1938 ^2.58414c.,-Jan
1937 __-2.58414c. ' Mar

1936~__'2.32263c,"Dec

2.27207c.- Oct

2.32263c.

t,2.07642c.

.Oct-

1934

.i.2.15367c.

Apr

1.95578c.

a_l.89193c.
99629c.

-.2.25488c.

J.75«3«C.

Mav

Jan

1.83901c.

Mar

1.86586c,

L»ee

;

^ " _V'Pig Iron."

^
•

•

Sept. 2, 1941 $23.61

Oct

22.61

Sep 19

20.61

2^ .25

Jun

21.,

19.61

23.25

Jlai

9 "

20.25

Keb 16

month

One

ace

average

iron

18.73

1935

•_—-18.84

Nov

17.83

17.90

May

16.90

!3ec

13.56

Jun

1934

1933

i4.8i

Jan

13.56

Dec

1941.:

15.90

Jan

14.79

Dee

18,21

.Jan

Mar 20

23.45

Dec

22.61

1930

1929

i_.

:■•/

;v. -

15.90

Dec 17

year
on

heavy
,

melting
p.n,aJ-ip.iia,

steel

quotations

ancj

Caicago. ;

1940

7 2

Jan

$19.17

Apr 10

21.83

Dec 30

16.04

Apr

22.53

Oct

14.08

Nov 22

11.03

Juu

21.92

Mar 39

12.92

N-.v

1936

_Af i7.73

Dec 21

12.67

_______

3 /

1^-5

Id i

'932
1931

While

small

find themselves in a hopeless
position until the shortages of material like steel pass—and they will
pass—other non-defense plants may owe part their difficulties to
their own inertia.
At Chicago the defense contract service this
week warns such non-defense plants to stick out their chins and
some

plants

may

19-0

1929

la.uu

17.53

.13. >J

Chicago

sub-contractor urges:

"Keep

plant

are

never

back."

Sep 25

6.75

Jan

6.43

Jiy

8.50

5
Dec 29

Jteii 18

11.25

Dec

Jan 19

14.03

Dec

The

American Iron and Steel Institute on Sept. 2 announced
teiegraphic reports which it had received indicated that operat¬

that

right now is the biggest sales prospect in the world
and go after his business as wolfishly as in regular trade channels."
To many non-defense plants, such advice looked easy to give but
hard

take.

Attacking

points, or 0.2%, from the preceding
Weekly indicated rates of (steel operations since Aug. 5, 194J,

week.

follow:

-V'.;./

1946—

Nov

-96.9%,'

Feb

from

another

•

-3.

„96.9%

May

-5____
12

_90.5%

Nov

11-

.96.1%

Keb

10_

-97.1%,

May

19—_ _—99.9%

_89.5',»

Nov

18_

_96.6% •

Feb

17_

__94.6%:

•>.«>'

Auk

.89.7%

Nov

25-

_96.6'/o

Feb

24-

—96.3%

Jun

-91.3%

Dec

_96.9%>

Mar

-97.5%

.Hill

9—

Aug

ikiig

••

12—_ —99.2%

98.6%

—

99.2%
98.6%

.82.5%

'♦•c

_96.-J%!

Mar

10-

—98.8%

"vUtl

Sep
Sep

-91.9%

Dec

16-

-96.8%.,

Mar

17-

—99.4%

Jun

Mar

24_

-99.8%

Jun

Mar

31-

-99.2%

Ji.V

Apr

—99.3%

-92.9%

UfC

2__

_80.8%

Sep

23__—

-92.5%'

Dec

30.

.195.9%,'

Sep

.92.6%

Sep

1941-

.94.2%

Jan

.97.2%,

Apr

14_

-93.3%.

Oct

-94.4%,

Jan

13-

-98.5%

Apr

21_

—96.9%

21—

.94.9%

Jan

20-

-96.5%

Apr

28_

-94.3%

Oct

.95.7%

Jaii

27-

-97.1%'

May'

-96.8'.i

The
rne

7——

Oct

the attitude that

the government

99.0%,

23_

30.

„___91.8%
94.9%
95.2%
21
96.0%
28—_.
97.6%
7

Jiy
a a*

j'v

Auk

Auk
Auk

95.6%
96.2%

96 5%

2—_

revisions
revisions

in
in

me
the

weeks reflect the

ruies
rates

pubMshed

recently

of 'the

iuuzL-ascu
oupaoity
for', increased capacity
announcd lof Juno 30, 1941.

»uu.»irju

ivi

industry,

96.3%
rated

"Steel" of Cleveland, in its summary of the iron and steel

dislocation of industry
not having defense orders, the OPM is surveying communities and
industries struck by material shortages, and the army and the navy
will be asked to place contracts in these areas on a basis of OPM find¬
ings.
A preliminary list of such industries shows stove, electrical
appliance, washing machine, zipper, aluminum ware,' metal of.ice',
furniture, refrigerator and such consumer goods industries particu-1
iarly hard hit.
The OPM hopes to convert these industries to war
work as some aluminum pot and pan makers were recently con-:
verted to rolling brass shells and drawing cartridge cases.
direction, the

Sept. 1, stated:
Breaking precedent of

kets,

mar¬

years, steelmaking units generally
Day, though some finishing capacity
will be idle.
This action attests clearly appreciation of necessity
for full production, since Labor Day has been a "sacred" holiday.
One effect will be to assure consumers that every effort is being
made to provide for their needs..
•;
Great confusion exists as to application of full priority on steel,
which goes into effect today (Sept. 1).
Reclassification of orders to
conform to the new situation is, going forward as rapidly-rs pos¬
.,' Difficulty in getting supplies has extended to the vital machine sible but is far from completed. : It appears definitely that defense
cool industry.
A recent survey of such plants showed that 20 out will absorb so much tonnage on high priorities that civilian con¬
of 85 reported troubles in obtaining sufficient materials, parts and sumers, will have little chance to obtain shipments for some time.
other supplies.
Some steelmakers, after study of the priority order and observa¬
j
At the same time 61 of the 85 machine tool plants report-short-;
tion of its preliminary workings, believe' it will clear the situation
ages of skilled, men and 24 found a scarcity of supervising per-: materially.
T'iey expect civilian supplies will be severely restricted
sonnel.
'
for perhaps 60 days and after that be in better position than during
/
Steel producers, endeavoring to make enough of that metal *oi the past few months, with more steel available for such use.
Apolication of Form PD-73 is expected to ration steel more equitably
go around, this week found another customer, Russia, inquiring for
than formerly.
large tonnages of almost all types of steel.
In the face of such a
demand from so many places, Labor Day this year meant little as.
Many consumers have sent in orders without necessary forms
These orders mu9t
production holiday and ingot output for the country dipped only: attached and in other cases not fully executed.
be sent back.
Consumers covered far.-in advance have failed to file
\ point to 96.5% from the 97% rate prevailing last week.
The steel industry as a whole closed August order books with
Form PD-73 and have been notified of the requirement.
total specifications equal to or slightly greater than the July ton¬
Mill difficulty varies with the proportion of defense business
Makers of special steels find distribution relatively easy
nage.
Some companies reflected gains last month as much as 30%, on books.
-

•

July, w'th orders in the past week particularly heavy for
plates, shapes, bars and oil country goods. The steel compan'es are:
expected to provide a comolete report on shipments, orders and

un-illei backlogs to the OPM about Oct. 1.
will recapitulate information-mow being
earners

form PD-73.

are

many

operating through Labor

above

This report apparently
steel con-!

supplied by

All steel orders how must carry this for.:.:

Apr 29

9.50

Jan 12
Jan
6

11.33

:T>

Aug

8.50
_______

Jun

/a/;

Mar 13
:

Oct

your

V/';JYVv

1937

•

Itlay 16

15,UJ

•____

19-9

Aug

improvement.

■iif,

low

_I_^_i_$22.00

This represents a decrease of 0.2

peting requirements of both defense and non-defense plants,
W/'
Meanwhile
the
plight of plants facing possible
extinction
through the workings of the complicated priorities system shows

v;:?/-

19.08

ago

No.

Pittsburgh,

7-man board.

Industry recalls that Mr. Nelson has frequently advo¬
of a civilian planning board to pass on com¬

■A
■f

39.17

ago

ing rate of steel companies having 91% of the stecL capacity> of; thei
_nuustry will be 96.3% of capacity, for the week beginning Sept. 2,
compared with a revised f.gure of 93.5% one week ago, 96.3% one
month ago (likewise revised) and 82.5% one year ago (unrevised)..

establishment

.}:\r

Steel Scrap

month

1941

:T / |

Jail

Dec 16

18.21-

R. Stettinius, Jr., former OPM director of priorities, and John D.
Biggers, former OPM director of product.on.
One of the ablest
men
10
rise in the reorganization is Donald Nelson, former OPM
director of purchases who becomes executive director of the new

cated

{(&>":

}

j.2j.61

1940

1931

Low -L
$23.45
Jan

-3

1932

and

.2 /

High

—

-5-

Cincinnati.
'

•f-'X-'

Aug 17
May 14
Jail 27

C iica-o. P ihc
I-' j- 3 934
13.00
Southern ' iron" 193312.25

Valley

Not 24

One

tor basic iron at Valley furn¬

foundry

Jiy

I— 19.74

1! Based

ago__.aa__.—-i.-____2L.__ 2. .61

B f .alo,

Sep 12

1936,

?i
29'

22.61 i

and

phia,

year

Based

__u_

—

1938
One

Low.

19J8"_-_.

One

Gross Ton

■

1937

2»

1.973^9c. .Dec

May 28 * 2.26498c.

V ;(}6ept.'.2i 1941, $ 19.17 a dross Ton
8! One/;week;/:bga22222L^Liui, .LWLL$19.17

Jan

10'

Jail

,1.95757c.

Oct
Jan

"„2.3i773c."

Mar

•

High

,2.06492c.

jJly

18:

Jail

'2.05200c."

1935

drafted to get the national defense program under way.

The "Iron
Age"/further reported:
Wnile the hew super board has potentialities for smooth'ng the
allocation of defense and civilian supplies; it removes from the
domestic picture two key men recruited from industry—Edwari

Lb.

weighted index based on steel bars', beams.
tan* piates,,;wire, .rails,
black .pipi, hot and!
cold-rolled sheets and strip. These products:
Trepresent- 78%. of the United States output.1

1929

Receive Additional Steel Defense Orders

30467c.:

>1930

Small Plants To

ago

1931

A
.

26,900 tons against 27,700
-/Vv\-.V.
PRICES
!

COMPOSITE

ago30467c.,

1933

Reorganized

AGE"

^^-2.30467c.i

ago

1932

0PM Board

awards/total

"IRON

Sept.;2,. 1941, .2,30467c.
One

■

not

steel

ago.

Finished Steel

~ '

One

than 20 New- York

Reinforcing
week

Healy, .according

Aug.
"after the first three

sent

both; interview

•v

the New York ''Times", of

29 stated that

4,900

I'THE

In his remarks

major political parties;
ocratic system

structural steel awards of 20,900 tons are more than
a
week ago..
Sizable lettings are .7,000 tons at Salt

Lake

12, page 2316; as indicated there¬
in, it requires, with certain ex^

Heonard

come

double those of

noted in these columns "April

successful

strict adherence to 'ceiling prices.
From various cen¬
reports to the "iron Age" that the usual large inven¬
tories built Up each fall at consuming plants as a hedge against
cold weather (when collection is more
difficult) are lacking,
a

the ' SEC. of

fight.
"Don't stop soliciting after submitting a list of
facilities," the defense agency said.
"Too • any firms
heard from again.
The aggressive firm keeps coming

^considered

OPA for

ters

Rule U-50 under the Public Utili¬

The transfer of the Exchange
membership of Harold W. Scott,
ipartner in Dean Witter & Co., to

•

the

are

ty Holding Company Act of 1935

that competition fair.; mission

laws,

midweek, the iron and stpel scrap trade, with orders taken
at prices above the OPACS ceiling cancelled, awaited
the imposition of mandatory control over that
commodity. A lull
in shipments set in following th'e Sept. 2 deadline proclaimed by
before Sept. 1

very

system
',

deals under Rule U-50, which was
-hem aim to preserve competition!
enforced on May 7 last, -the Com¬

them, but a false move
might quickly change

Vichy

dies

follows

system of free enter-:

prise and when practices are al¬
lowed to develop which eliminate

echo

but the attack will

grimly in French councils. Ger¬
man : authorities
appear disposed
'to treat' the incident as of no
iby

(frequently

erican pattern

concern

the

without rela¬
tion to past affiliations) and in the,
cendering of bids., The insistence
upon competition in the sale of
this particular kind of merchan¬

proponents of collaboration" with
now: are reported out ol

^danger,

formation of groups to bid on new

hitler

both

bankers

vestment

The two leading Frencn

Colette.

"Ours is

Association of Railroad and Utili¬
ses

un¬

•epitomizes the problem, and alsc
to

feeling

"The

tive, there appears to have been
questionably are moving toward p.ctive
competition between in¬
the same situation.
But France
tends

week sheet mills, consumers ,of their. products, again
the pressure, of the defense program and w;ere having
production cut because of the allocation of plate tonnage.

This

were

their

held

are

militarists

German

by Oct. 1. most of the unfilled steel tonnage on company books
be properly-catalogued and (classified for the OPM.

will

rule will foster free

Harassed by the Germans on
*>i*e

Says Liberating Influence of Competitive
Bidding Rule Fosters Free Enterprise

practically all their production goes to defense.
Mills making a
variety.of commor steel have heavy orders from customers
in the H class and difficulty is being experienced in deciding how
much of this tonnage can be released.
as

wide

Consumers

without defense or essential

have been able to get

civilian

bu°;ness, who

by until now, face the necessity of

obtaining

i
'

'7'

"JTfW; vnTrtirmwiwiwaw

FINANCIAL CHRONICLE

Number 3976

Volume 154

President Calls For Increased Armament

clearjy and decisively—

the

Tungsten Is Placed Under Full Priority—

fact that

all of our! rights
interdependent.
/ The right of freedom of wor¬
ship would mean nothing with¬
out freedom of speech.
And the
rights of free labor as we know
them today could not survive
without the rights of free enter¬
are

Prcdiidion; Everything E'se Is Secondary
Labor Day radio broadcast on Sept. 1, President
Roosevelt asserted that "we shall do everything within our
In

to crush Hitler and his Nazi forces" in order to "build
on enduring foundations."

power

democratic world

Stating that American labor "bears a tremendous re¬
sponsibility in the winning of this most brutal, most terrible
the President as-*>
holiday—we celebrate the rights
that the reason why we
of free laboring mem and wo¬
are determined "to devote our en¬
men. /.///■ './/''■//'
."'■'•..'■■v"v
tire industrial effort to the proses
/ Tue
i, preservation
of
these
cution of a war which has not yet
rights is now vitally imports tr
touched our own shores" is "due
not only to us who enjoy them
solely to our recognition of the
all

wars,"

serted,

fact that

—to the whole future of Christ¬

fundamental rights,

our

American

Mr.

that

said

further

•

all

our

rights "we have been able

defy and frustrate the eriemies."
While stating that the products of
American industry are "moving

to the battlefronts

ism

day"
our

effort

American

was

•enough and that the total of our
production must be .stepped up,;
since output of "the weapons of
determine

will

;>7jAj freedom

that

precedence

must

over

Mr.

Roosevelt
do

full

part"

maintenance

the

/v''-• •,/ •; / -■
■
'!■'
Why are we doing this? Why
are we determined to devote our
entire industrial effort to the

We are not a
We. have never
nation

warriors.

interested—as

not

are

are—in

conquering the "forces of insane
violence" let loose upon the earth

not covet

one

With regard to those
who urge a course of negotiation
with
Hitler, the President said

territory

by Hitler.

would

Benedict

not

become

Arnold

and

that he holds dear.

President's

The

Labor Day

gram,

was

all

made

observance pro¬

arranged by the Office for
Others
program included British

Emergency Management.
Minister

•i

Labor" Ernest Bevin,

from London; William
Green,
President
of
American
Federation of Labor;
James B.

speaking

Carey, Executive Secretary of the

These

all

ment in

Production Management,
following is the text's of
the President's address, according

icans

The

the Associated
On

this

American

the

over

has

There

our

were

been

mo¬

times

fight for

and
,

national

emer¬

wu^

•

of labor, at least temporarily.
A shift in demand for shapes

plates is evident as p
construction nears-completion and .production gets underway,
accent is shifting from building material to steel for fabrfeatio.
the new plants, a trend to be intensified in the future.
Outlook for pig iron for use outside defense work is dark,
*

That

what

unites

us—men

ley

all

sections, of
all races, of all faiths, of all oc¬
cupations, of all political be¬
liefs. That is why we have been
able to defy and frustrate the
enemies who believe they could
women

divide

and

within.

conquer

These

eries

all

that

These enemies know that if those
navies

and

•

destroyed, the

are

American Navy cannot now, or
in the future, maintain the free-

dom of the

seas. against

all the

know that to¬

day the chief American fighters
the battles now raging are

engaged in American in¬
dustry, employers and employees

course

production

these

But

that:

each
'

•

enemies

also

•

know

.American effort is hot

our

infinitely
The

yet enough—and that unless we

step

the

duction

guard

total

and

heart

tack

give

ourselves

fields

and

blocked

and

halted,

making

lbled

force—to

into

mergy

throw

job

the

dence

and

defeat¬

of world conquest and
thereby end all talk or thought
of any peace founded on a com-;
promise with evil itself.
know that

over

free la¬

for its

table.

This results from

widespread disregard of price schedules in the effort to obtain
larger supplies in the present period of scarcity.
Exports of steel and iron products in June fell off for the fourteenth consecutive month.
Excluding scrap, shipments totaled only
398,667 gross tons; compared with 617,181 tons a year ago.
How¬
ever, exports for first half, at 3,016,668 tons, is somewhat above

2,764,943
.

tons shipped'-in first half last

- iv/:high rate, 39 935 unitr;

year.

Production of automobiles continues at

being-made last week, compared with 45.525 the preceding week
and 27,645 the corresponding week last year.
-'
Ingot production last week gained ^-point over the revised
rate of the preceding week, to 96f£%.
Birmingham, Ala., showed
an increase of 5 points to 95%
and Wheeling 1 point to 93% - The
remainder were unchanged;
Chicago,
101 ty;
f8; c,+

dictatorships
out all the
principles and standards which

•.

.Louis, 98; Eastern Pennsylvania, 95
Buffalo, 93; Pittsburgh, 100;
New Ehgland, 90; Detroit, 92; Cleveland, 93; Youngstown, -93.
Revision of steel making capacity figures bv the American Iron
j and
Steel Institute from 84,152,000 net tons, the base during first
<-half, to 86,148,000 tons as of June 30, the base for second half, has
rhad the effect of reducing the per cent of capacity operated about
itwo points. . Rates have been revised from the beginning of July
to give effect to the new base.
Composites are* unchanged* prices being frozen a£ OPACS levels.
-Finished steel
posite is $56.60, iron and steel, $38.45 and steel¬
works scrap $19.16.
/
\
■

r./ •'

own

philosophy

trade

For

un-

ionism demands full freedom of

expression

peaceful
unionism

and

as¬

sembly.
Trade
-has
helped to give every one who
toils
the* position
of
dignity
which

The

his

present position of labor

this

with

crumbs

nation

aim

Hitler—to

from

his

modern

Benedict

our

betray

churches— to

our

country. -This course I have re¬
jected—I reject it again.
Instead, I know that I speak
the

conscience

tion

about

ican
ness

nation

Hitler

way.
work

has

not

the

say

and

determina¬

American

that

people

shall

that way.

worked

farmers,. ■ American
men

men—all

that

great
build

nies all

privilege
a

ing. of the church. He has abol¬

that

ruthlessly

V-'/ •- "!'!
/v

■//••

laboring

President
we

fully and well.

to
en¬

on some

the

did

'■/-;
future

during foundations.

May it be said
Labor
Day
by

trade unions

together—have

democratic world

rights to individuals, he
must deny all rights to groups
—of labor, of business, of learn-1
ished

busi¬

and American church-*

the great responsibility and the

not—he cannot
Just as he de¬

not

He Will

come

■'/;■/"//;' 1 '

zinc for

common

the

week ended Aug. 30 amounted to
3,177 tons, with shipments in the
same period of
7,334 tons. Unfill¬
ed

orders'of

zinc

common

stand

67,298 tons. The trade is await¬
ing clarification of the recent, or¬
der from
to

Washington to seil zinc
with

consumers

defense /or¬

ders, whether or not preference
rating is stated by the consumer.
Prime Western zinc continued at

7^4c., St. Louis.
Cadmium
Leon

Henderson

Aug.

have

indicated

that

continue

announced

major

sell

des

and

95c.

direct

sell

willingness

cadmium

prices not above 90c.
sticks

producers

their

pound for
pound for ano¬

sales

and

users,

dealers

at
discounts
which will permit resales to con¬

at not above 90b, and

respectively,
Prices

these

levels

held to be excessive and
ers

have

what amounts to

been

Cadmium
cessive

are

consum¬

requested

not

premium-.

asked to pay ex¬

users

prices

should

report

OPM, Mr. Henderson said.
at

95c.,;

the shapes named.

above

Con¬

unable to obtain cadmium

the

prices

indicated

should

communicate with OPA.

domestic

and

imported

ore

Tin

•;

Nearby
made

the

for

last

' :

;

tin

being unavailable
quiet market during

week.:

Prices

remained

tures

by chance.
It has been an evo¬
lutionary process of a healthy
democracy at work.

the

dom—to

and

American workers and Amer¬

American

unchanged at the fixed ceiling of

Arnold

terdependent unit in the Jife of

States

United

Sales

victorious

everything in our power to crush
Hitler, and his Nazi forces.

the

of, the

*/"/////////1 /'/" 2int;

pray

in¬

basis

Smelting & Refining Company,
and at 5.70c., St. Louis.

They do, in fact, ask me

become the

when

due.

settling

all I hold
dear—my devotion to our free¬

forbidden

under these rule "or

dictators.

ruin

small, totaling 3,731 tons, against

4,547 tons in the previous week.
The quotation held at
5.85c., New
York, which was also the contract

•

negotiate

preservation and ad¬

Trade unionism is

prece¬

private

re¬

weye

wipe

vancement.

of the first

one

Axis

Reserve

concentrate.
By this action bet¬
about our business of pro¬ ter control over prices is
expect¬
tecting the proper interests of ed, trade authorities familiar w th
our
country.
the situation hold.
An allocation
The task of defeating Hitler
system has been set up to regul¬
may be long and arduous. There ate distribution of
ferrotungsteri,
are
a
few appeasers and Nazi
tungsten
metal,
and
various
sympathizers who say it cannot tungsten salts.
be done.
They even ask me to
for

the

been

by: Metals

labor has been able to establish

acts

take

must

every

For these forces may be

them.

bor system is the very founda¬
tion of a functioning democracy.

has

leased

sumers

every

unleashed

We. know that

[

over

private interest
We are engaged on a grim ana
//'/'/ •'//// '
Tungsten
/!////
perilous task.
Forces of insane
Tungsten
ore
or
concentrate
violence have been let loose by has
been placed under full prior¬
Hitler upon this earth. We must
ity, it was announced during the
do our full part in conquering! last
week.
The order covers both

menace

The defense of Amer¬

freedom

ica's

ing him—to end for all time the

And

smal

cannot hesitate, we can¬
equivocate in the great tas*
us.

••'■'//;;

•

holiday week excluding metal

pay

before

a very

the

representatives to consider
allocations
of
foreign lead for
September.
Sales /'during • the

pro¬

of free

We
not

that

Lead ..-A'

■

sumers

the

pass.

danger¬
ous
assumption.
When in any
war
your enemy seems tq be
making slower progress than he
did the year before, that is the
very moment to strike with reare

determine in

anc'
jointly

length cf the ordeal
which humanity mus

the

through

new.

warning

solemn

those who think that Hitler has

they

dom will

part

discount

Producers met yesterday
(Sept.
3) in Washington with govern¬

duction cf the weapons

old

which

with

aedicate

these enemies will
pushing their at¬

battlefields,
take

small

I/'.//

stake ir

singlemindedness

its journeys' to the

more.

sacrifice

of our pro¬
greatly safe¬

standards

their

means

mean:

labor—wha

thr
preservation of the fundamenta
freedoms, in the continuance 0
democracy throughout the world
We have already achieved much
it is imperative that we achieve

against Hitler-

increasing volume

the world

No group has a greater
the defeat of Nazism,

gains and that the product
of these industries is moving to

day.

Chicago / area.
Casting
coppei?
normally sold on a refinery basis;

living, their freedom, their lives

mous

ism

group

domination of

in the past year has shown enor¬

the battle fronts

coppei

has

than has organized

,V;/v ■
know that the

American

f.o.b.

persecuted religion
of Americans ha:
realized more clearly what Nazi

those

These enemies

casting

of / Valley

ference with suppliers and consumers last week.

now

and

refinery
basis.
OPA
stated that Lake, before ceilings
is

alike.

differentials

11.75c.

electrolytic,

our

Army is increasing daily in its
instead
all-'round strength.~
/ j
These enemies

and

ment

copper

delivery

same

possession of large stocks by some consumers has been
OPM and this may bring adjustment to relieve
needs of other melters less happily situated.
Notice that ceiling prices on scrap will be enforced after today
by application of full government powers is the outcome of a con¬
although

revealed by reports to

eppper, though held at a celling
of 12c. Valley, may be sold at the

rest of the world.

These enemies know that

premium.

in the domes¬
tic market during the last week
totaled 22,294 tons, against 13,62^.
tons in the previous week.
Sale;
of domestic metal during August
involved 85,763 tons, which com¬
pares with 99,912 tons for July.
All of the
business
during the
seven-day period was booked 01
the basis of 12c., Valley. M/v!,/ V
OPA
on
Aug.
28
amende:
Schedule /No. 15
so
that Lake

strong Navy—gain¬
ing in strength.
They know
that that Navy—as long as the

other

anc

deliv¬

:Copper
Sales

know

sold

Western

September
copper
from
OPM
The publication further stated:

'•

enemies

electrolytic,

allows

Consumers receive allocations for

from

;

basis

therefore

We possess a

fact is brought home

prime contracts or subcontracts carrying priority.
R&baMy con¬
siderable delay in switching to defense work
result in/disloca^
tion

and

been
a

history when Amer¬
not restdy to stand

gency, one

world.

never

free men
their rights.
up

Press:

day—this

nation.

rights

ciate Director General of the Of¬

other

anv

our

seas

fice

looting.
We do
square inch of the

were established
forefathers,.on the field
of battle.
They have been defended-r-at great- cost .but with
great success—on -the field of
battle, here on our own soil, and
in foreign lands, and. on all the

Congress of Industrial Organiza¬
tions, and Sidney Hillman, Asso¬

dic¬

to rule the world.

the

effort, and the unity
of purpose which inspires that
effort, are due solely to our
recognition of the fact that our
fundamental rights — including
the rights of labor-^are threat¬
ened by Hitler's violent attempt

talk

Our vast

modern

betray

warlike people.
sought glory as

We are
interested in aggression. We

not

tators

of de¬

shores?

that

asserted

also
our

and I developing new
of unprecedented power

prosecution of a war which has
actually touched our own

private aim
private, interest."

every

"we "must

now

not yet

over every

and

And this nation is

mocracy.

take

interdependence pf cadmium at - 90c. a pound fo.$>—
——,
■ /.
'—/
' ' ■ ;<■
were set, sold at a small
OPA
interests, privileges, opportun¬ sticks.
premium
definitely
place
overLake copper price on same Val¬
ities—interdependence of rights.
electrolytic in the Valley

Russia exist—can together guar¬
antee the freedom of the seas.

toward

;

defense

"the

fronts

these weapons are

the world

devising

great task before us," the Freshadded

battle

Navies of the British Empire and
the Netherlands and Norway and

weapons

of the ordeal

America's" freedom

the

all

•

the air.

throtigh
which/ humanity- must
pasS."
Declarihg that we "can¬
not hesitate or equivocate in the
dent

we are

us—all

between

re¬

prices is expected by this action. Leon Henderson announces
major producers of cadmium are willing to continue selling

That is the indestructible bond
is

Sept. 4

ported that both domestic and imported tungsten ore and
concentrates were placed under full
priority, under Prefer¬
ence Order M.-29,
during the last week.
Better control over

Americans:

being dispatched, by day and by
night, over the seas and through

small part the length

7W--V

buildng weapons
scale great in its magni¬

not

arsenals
on

President warned that

the

responsibility

factories and shops and

our

tude.

against Hitlervolume " each

increasing

bears

now

the winning of this most brutal,
most terrible of all wars.

be¬

interdependence of

the

cause

the world."

rule

Roosevelt

labor

tremendousf,

•

tempt

civilization.

ian

including the rights of labor, are
threatened by Hitler's violent at¬

"Metal and Mineral Markets" in its issue of

prise,
that

•

Cadmium To Sell At 80c. Per Pound

•/

our

some

future

United

States

work

faith¬

52c.

for

Straits.

Prices

for

fu¬

also 52c.

were

;'//;
World production of-tin (on ore
basis) for July was estimated at
18,100 long tons, against 19,900
.

tons in the

same

according
seven

month last year,

the

Institute.

Tin

Research

Production in t.e first

months of ttiis year totaled

146,900 tons, against 125,100 tons
the Jan.-July period of 1940./

United
for

States

August

which

tons,
575

tons

deliveries

amounted
compares

July and

13,625
with 12,—
12,470 tons

in August last year.

.Straits tin for future arrival
as

tin

was

follows:

Sept.
Aug. 28 ____52.000
Aug. 29 S—52.000
Aug. 30 _i.l_52.000
Sept.. 'll_.tr.-

Oct.
Nov.
52.000
52.000
52.000
52.000
52.000 * 52.000
—Holiday

Dec.

52.000
52.000
52.000
—-

Pent.

52.000

Sept.

3 ;;__52.000

52.000

CHRONICLE

FINANCIAL

mine how much

Senate Committee Tax Bill

Reported; Yieldpstimates Vary
The Senate Finance Committee

completed its action

the yield<$>
approximately $4,500,-

000,000.
Press

from

accounts

ap¬

$15,000,000,000

effort

items

erable

Senate

debate,

committee
amendment

Senator

approved

would

measure

revenue

in substantially its

would

present form
difficulty

little

the

considers

mittee

measure.

•

George

and

Senate

House

taxing

An item

bearing

Committee's action

peared
b'll

Aug.

Senator

asserted

"grim patience
high patriotism" in bearing
burdens;

tax

Press

eight

the

burdens

interest

still

should

"to

for

seek

not

paralyze the driving force of

individual

effort

and

initiative."

and

another

[ minority 1

ing bill

taxes

proposal

committee

refused

the

bill

hodge¬
podge of inconsistencies, with no
underlying principle of taxation
whatsoever, except that like many
previous tax bills it 'plucks the
goose that squawks the least.' Un¬
fortunately the small individual
taxpayer who will dig deep into
his pockets to pay these bills has
not made himself\heard."
He

eral

said

that

fiscal

the

"proposed

problems.

intolerable

finitely
and

the

"It

conviction," he added, "that
pending bill, which makes,

the
an

add

The

tax."

tax

15%

sound

structure

in¬

should be rejected
thoroughgoing revision of

tax

should

tax

worse,

structure based

upon,

the

principle of ability to pay
be".- immediately
under¬

taken."

•

/';■

■" '

ollowmg:
,

wording

for

corrections

advices

Sept.
from

Senator
ber

possible

/'V

also

the

technical

certs

voted

wr,ere

stated:
mem¬

[Senate]

committee,
told reporters that he would file
a minority report criticizing the
measure. Mr. George announced
that
Senator Clark, Democrat,
to

Missouri, reserved the right
file

minority report in

op¬

position to the committee's de¬
cision
tax

to. broaden- the

income

by lowering personal
deductions from $2,000

base

3o0

84,200

72,100

369,550

389.750

450

218.800

374,900
183,350

400

288.300

189,600

.+;7',91)0./ 1,444.050

X2Q5.050

289,650

Louisiana

1,449,300
254,000

1,600
5,000

249,050

324,500

325,081

333,900

+6,600

326.600

80,700

74,428

79,900

_—

•

150,600

391,100

Ind.)-; to.

21,806
377,800

Montana

20,050

18,450

91,100

88,85b

750

95,150

85,000

20,000

;••/'

•

5,250

84,750

33,000

-•

47,250

4,350

1,550

83.600

72,150

20,350

98,900

Michigan' to-toto-to /

Colorado

the negotiated

4,400

—

112:900

Mexico
of

East

Total

" •
"112,900

•3,299,000 -V.

Calif.

,20.350

.1, 17,460

basis.^ V

630,400:

4,004^700

3,940,000

States

100,700

33,450__3,317,700 "2,905,350
r~
"596,000
4,200
643,650^
+

L".

United

•'Total

3,500

111,750

":ioo

113,800

3,374,300

53,350

43,500

3,900

641,600"7Ui610,006

California

73,756

49,000
374,800

5,500'

—

120,250

22,100

—toto":

2,600

+
'

inol.

(hot

Wyoming totototo..—

New

210,300

274,900

74,200

300

74,650

25,200
390,100.

Mississippi 'L__to_to

going to'start to form;
group by approaching those;

64,000

77,550
"

to_-

Illinois

;

§1,404,665

Louisiana' .to—

Eastern

28,950

195,900

1,200

219,200

—

Indiana -to

30.750

272,900

95,250

84,950
—

Louisiana

+29,250C- 3,961,350

3,501,350

"It is to be expected

that this:

of Mines' calculations of the requirements of domestic crude oil
policy will generally be followed U- based upon Certkirt.'premises outlined in its detailed forecast for the month of
S v .> AugUslt'- As- requirements may be supplied either.-from stocks, or from new proin the industry.
It appears fur¬ -Eduction, • contemplated withdrawals from crude oil; inventories must be .deducted
ther to be the inclination on the •iik^fronu,the Bureau'^ estimated requirements; to determine the .amount of new crude
Bureau

;t These, are

major
tations

exempt from

tax

civic

profit

bankers

historical

from

to v October

for

the

that

economies

can

organizing

ef¬

Individual income tax exemp¬
are lowered [.surtaxes range

the

first

$2,000 of
taxable income upward to 77%
on

taxable

income

over

group

mal tax

dividuals

still

banker,
know

may

claim

but

over ;

group to

and

the

his

10% earned income credit. The
for dependents is left at

can

also

others

bid

the
Ijkely. to

sooner

issue

intended

than,-, others

therefore start forming

grodp before others

cide what

not

course

can

to take..

de¬
It is

however, that as
time
passes
these
advantages
will tend to disappear as the ties

a year.

special step to aid the mil¬

lions of low-bracket income tax¬
payers

was

whereby
than

adoption of a plan
earning less

persons

$3,000

24 and 31st;

with

few

•

year

may

deter¬

issuers

and
are

between

their

tra*;

broken by

(Continued on Page 27)

GASOLINE

FINISHED

AND

GAS

AND

0lL"> WEEK ENDED AUG. 30/1941
A

!Daily Refin- '> Crude Runs
to Stills

ing Capacity

District

Re-

ten-

;

166

East vCoast .11.'-to to i
111.

Gklk.

•

x
•

Unfin-

413

-"•

Rocky Mountain

—

Reported

AUg.
s.

u.
j

,^3;

963

96.4

155

104.7

337

.,51

108.5

158-

sifiual.

Gaso- /••• hDisz .:»oil i

9 127 E

§33

;

L 6,672

1,951

2.057

442
.

3,128
•v

378

6,413

330

8,107

1 765'

411

•

132?

1 320 ;

1,539 "
/,'•

•

Interior

C'st

3,142

;

80.9

252

1,050

1,623

13,734

12,443

65.472

3,716 *. «.94.7

1,733

11,932

76,1'22

44,251

93,552

6,903

'86.4

354-

11,330:

•

5,550 I

,.,,127,.

1,100.

427

Calif.:

'.1,500

365

"
'

'4.070
'

13,292' 181,672

45,351
.

13,220

3,975

82,566 /44,282'

94*308

7,268

.-§3,508
Jill,408
84,047;
to///;-0* ,011^ 44,678 107,155
107,155,

7,192
-5,760

Mines !basis;;.'. 4At, refineries, bulk terminals, in transit 'and
ttllncluded: in finished and unfinished gasoline total. . SAug 1940 dniiv
week's productionhased on the.U, fi.: Bureau of Mines/dallv' kvlr
tFihished, 73,746,000 bbl.; unfinished, ,7,926,000 bbl,
* to ,

Estimated• Bureau, of
pipe lines.

70^

2^ v

86.2

55
616

90 9

k('\

Coast

634

5,207

2,243
11,148

'^line

20,261'.-15,296

Hon•

Fuel:" Gaso-

14,438

:.oo3
3,099

-average, "ttThis is a
age

Oil

line■ i , filiates

'*•

Ar/ia*-

of m.'.

30, 1940
30f

309' to92.8 -'< 1,242

1941 — ! 4,538
-23,'' 19414,538

tAug.
to Aug.

30,

1,654
2,497'-

.and >■/"'.>

95.7 ,•/ 437 " 13.070r V

80.7;-

95 <: 49.9"
136
50.1

Unreported
. ?' ?
tot. U. S-:*

Aug.

■

637v1003

•

tEst-,

1133

94.2

787

California

Blended

644 to! 95;7;,

83.8 :

91.0:

—

Est;

-Aoer, .a<.ed

•" V

* Stocks ^Stocks

Gas

■<;•••

ished" v

Oper--Natural

M-.

•iiaaddv-i.ti./asi, 4-.-P J»~
Texas Gulf
1,097
156
Louisiana
Gulf
&' Arkansas'

IncL'

;P. C.

R4 4 -"*-

nr.o

Kans/- Mo.'_-,r

No. La.

■

100.0

_____

Ky.:

Fin-tj y, of

ished &

■■■

Rqie/.,y ing..
673

Stocks^"Stocks'>*■■

Gasoline

Produc'n

at Re-,

/•*••tialijpott- 't? Daily

r-H '

f..-.

;'1 -Jr
'
f. '

•

/.;.f y.A:/; fineries

ifi^.Po?;: P. C...

•to-v..r;,

Appalachian

■'.! 1

FUEL

(Figures? lh.Thousands of Barrels, of 42 Gallons Each)

'.4;«•••».z....

unlikely,

ditional bankers

STILLS, PRODUCTION OP GASOLINE AND STOCKS

com¬

because

banker
the

somewhat

creuit

$400

17,

they would
about the situation/;,
present time, there¬

headed by the 'informed'

traditional

$5,-

The existing 4% nor¬
rate is retained, and in¬

000,000.

This is so not only
because of the tendency of the
larger participants to adhere- to
the historical group, and the in¬
clination of others to join in the

•

10*

...

'RUNS

CRUDE

for the

petitively.

where
be

the

been; the

advantage

some,

the

budget bureau;
on

fore, the traditional banker has

Sep¬

had

who

bankers

"At

advanced

August 3,

are

■

the

con¬

goes

levy.

also

new

:+£'i"made; -Panhandle' shutdown^ days

-to

know

will increase

''■[

allowable as of August 1st but experience indicates
wells are completed, and if any upward revisions are

31-day

basic

net

the

that it

■' '

August 27th.

a. m.

Other
bankers
ex¬ to •: .exceptions,,the rest of the state was ordered shut down on August 2, 3, 9, 10, 16,
[ ' ' ; ;;
^.'^U
'
pressed ; the view that,« other to; "17, 23, 24, 30 and 31st. ' ; ', ;■
^Recommendation' of Conservation Committee of California Oil Producers! •: •' '
*
things being equal, they would;
NOTE:—The figures indicated aboVe do not include any estimate of any oil which
prefer to accept 'the invitation:
might have been surreptitiously produced.
of that group which was led by

It
previously
exempted agricultural fairs

tember

§• This

provided;

figures are for week ended 7

Miss; and Ind.

pations.

stockholders.

from the

proffered,

they receive satisfactory partici¬

Kans., Neb.,

4 Okla;,

'?'•

^ '•"

tradi¬ 7:'oil to be produced. /

of such

members

tional'groups to accept the invi¬

30,700

Texas

»'to 111,

150

"65,000
•r

274,350

Arkansas toto--------

On business where we*

10^,400

6,300
"

Texas

Coastal

are

had

from

Washington

U-50/'>

<*jjj8,O50

200

176,900

246,200

5,300

100,000

Total

past have headed a group)
negotiated basis, we are go-!

reason

Associated Press

LaFollette,

to Rule

250

80,300

t7,350

;

420,550

421,800

250

1940

1941

Week

J254.300

Texas

North

Ended

Aug. 31

242,800

Totai Texas Ito—— 1,361,000

Page 24)

Ended

Aug. 30

Texas

Coastal Texas

from

—

Southwest Texas

who-were associated with us on

tions

that

—to

■

admissions

Under

Sept.

1941

4,400

——

Panhandle

Week

4 Weeks

Change
Previous

J427.650

West Central Texas

pursuant

ap¬

obliga¬

fected.

its

ab'.es

Kansas

North

Aug

415,000

492,400

—

Nebraska

ing to form a group la bid, and

consumer;"' v'-r

arranged

study

Week
Ended/

State

Cdmmittee today adopt¬
ed a provision calling for a $1,
000 fine for persons who claim
in advertising that they absorb¬
ed taxes imposed by the bill in¬
stead of passing them
on
the

Federal

date

The

to furnish information

that the Senate

29,

slightly.

testified that:

Washington, Aug. 29 we take the

Aug.

I,:-'"'

■

A loll)-

(August)

the bill by the

one

From United Press advices from

generally

Aug.

•■to-....

lated

will mo-

Healy declared, "an officer!
of the large underwriters!

Mr.

tions.

it was reported
Committee, while
approving the bill on

'■

of M.

Require-

noted in these columns

was

issued

be used

lend-lease

reduce

deadline

■■■''

) 'f

fi ments

Admission

(Continued from

accruing

would

tax

"-T

Says Bidding Rule
Fosters Free Enterprise

"lend-

would

Revenue

from such

pay

East

that

amendment

computed.

patchwork" would not solve Fed¬
firm

bill"

the

lease

said

ply after, the total income tax

"The bill" he said "is

Ca.Cc

in the

Nye

offer

would

ible."

;

•

Actuai Production

East Central

for this,

authority

accounts,
Senator

his

"inadequate, inequit¬

UXto

West Texas z.tJ:—---

United Press Washing¬

ginning,"

in my opinion indefens¬

Aug. 9, page 769.

"just the be¬

was

tax"

raised

are

House

Nye, (Republican) oi
Dakota, declared on Sept.

that

will

owners.

The adoption of

time

60, starting in

over

The

North

report that the pend¬

was

able and

said

is estimated to have

compan.es

Auto¬

Oklahoma

articles.

potential
the

was

torboat

idded:

LaFollette

f
v'-; ' to; ' '
•'"to ' "
AVERAGE CRUDE OIL PRODUCTION (FIGURE3 IN BARRELS)

to. '

DAILY

present 3 Vz %

also

motorists

Senator

/'>.

;

made

are

added.

are

ones

new

annual $5 "use

incorporated this in the bill,
but Senator Downey
threatens
to raise it on the floor.

ton

Senator

taxes

tax instead of the

in¬

tax

by taxation

"nuisance"

and

provision
sharply
the excise levies

persons

1944.
was

groups
of tax¬
be increased, Senr+^r George added that Congress

by all

13,292,000 barrels during the week.

oeen

mobiles will be subject to a 7%

and

Downey, 'Democrat, of
California, to write into the tax
measure a $30-a-month
pension

all

of gasoline produced

amount

Excise taxs—Numerous excise

Ari¬

Senator

should

payers

start

but under the bill would

property

Texas,

manufactured

Still

new

that

■.

community

consumer

and

the Senate that it

national

•./-f:;

permanent others are increaseu

The

part:

Telling

owning 86.3% of the
4,538,00U barrel estimated daily potential refining capacity of the
United States, indicate that the industry as a whole ran to stills,
/ on a Bureau of Mines'
basis, 4,070,000 barrels of crude oil daily dur¬
gift taxes—The ex¬
ing the week,: and that all companies had in storage at refineries,

creasing

indicating this likewise re

ported

;■

barrels at Philadelphia.

Reports received from refining companies

3%.

controversial

:/•?•>-"*'//

stances;

Associated

The

at New York and 64,000

the

isting $40,000 exemption is con¬
bulk terminals, in transit and in pipe lines as of the end of the week;
tinued but rates are increased'
Ti.e total
slightly. They now start at 2%N dl,672,000 barrels -of finished and unfinished gasoline.

must

demonstrate

35%

points
// '•};
The provision eliminating the
right of husbands and wives in

George

all

that

up.

Estate and

Other

some

opened

who

New Mexico, California,
Washington and Nevada
—to split incomes in filing theii
returns,
a
procedure
which
means lower taxes in many in¬

began yesterday (Sept. 3). It

was

would

$20,000

Idaho,

the

all along the line—i. e.,

tax

zona,

the bill ap¬

Senate debate

1208.

page

issue

our

profit tax rates would
by
10 percentage

of income subject
to the excess profits tax instead
of 25%
as
now
provided,,:and

States—Louisiana,

the Senate

30. totaled
207,143 barrels, compared with
a daily average of 244,714 barrels for the week ended August 23, and
221,429 barrels daily for the four weeks ended Aug. 30.
These fig¬
ures include all oil imported, whether bonded or for domestic use*
but it is impossible to make the separation in weekly statistics.
Receipts of California Oil at Atlantic Coast ports during the week
ended Aug. 30, totaled 138,000 barrels, a daily average of 19.714 bar¬
rels, all of which was Gasoline, 74,000 barrels having been received

boosted

the

raise

receipts in bond at

1,450,000 barrels* a daily average of

com¬

mittees, could begin its work
week from today.

from

reported by the Institute follows:

principal United States ports, for the week ended Aug.

■„

by the U/S. Department of the Interior to be

Imports of petroleum for domestic use and

tax—Despite

profits

Excess

points

were

said that he
hoped
the
conference
group,
composed of members of the
Senator

the

Senate
changes
conference com¬

adjusting
a
joint

tails

less

■:/•;

;

tained.

first

turns»'•

cent

ing excess profits taxes, it is re¬

approximately
$300,000,000 annually and would
require
6,000,000
additional
persons to file income tax re;>•

and

The current week's figures were above the

culated

earnings method of comput¬

age

$2,000

and

persons

:Vy

corporate

new

per

Excess

$800 to $750 the exemption for
single
persons.
The
change

•

when

married

high mark (the third one in three
gain of 29,250 barrels from the output of
new

was a

preceding week (the previous all-time high record.)

the

income and seven

$25,000

would ;

Saturday

from

to- cut

consecutive weeks)

treasury opposition to the aver¬

taxes.

$1,500 the income exemption

for

night (Sept. 6). He said that if
the; bill — carrying $456,400,000
more
than the Treasury-estim¬
ated House total—were passed
there

their

lower

six

vided.,

the list of Senate
changes > was
an

Topping

several controver¬
develop consid¬

•«

may

George appeared optimistic that
the

004,700 barrels. '<• This

cent on larger income is pro¬

per

Although
sial

than

tax.

surtax

committee amendment prohib¬

year.,

normal

iting husbands and wives in the
so-called
community
property
States from dividing income in

correct,

would

revenues

proach

proved

yield

Federal

4,-

crude oil production for the week ended Aug. 30, 1941, was

age

3,940,000 barrels cahthe total of
be increased slightly, with the restrictions imposed by the various oil-producing States during Aug¬
rates starting at 14% on the firsc
ust.
Daily average production, for the-four weeks ended Aug. 30„
$5,000 of income. Larger corpo¬ 1941, is estimated at 3,961,350 barrels. / The daily, average output for
rations will pay the same 24%
the week ended Aug. 31, 1940, totaled 3,501,350 barrels.
Further de*

porations—whose earnings are
Tess than $25,000 a year—woula

Senator Connally reserved the
right to report in opposition to

that ? if
$4,500,-

said

George

calculations

000,000

The American Petroleum Institute estimates that the daily aver¬

Tax rates for smaller cor¬

too.

individuals.

Washington

Sept. 2 said:

\his

in-

tax
wouldbe
other taxes here,

10%
with

merged

for married persons
$800 to $750 for single

$1,500

and from

Associated

this,

Senator

•

bill would

revenue

special

Finance Committee,

Would

Ended Aug. 30, 1941, Continues Higher

yA;
"

1941

on >;.■ corporated with the surtaxes.
;■
Corporate income taxes—The

proposed tax bill on Aug. 29; the measure as it comes
from its hands, and formally reported to the Senate on Sept.
2, will, it is estimated by the Treasury yield $3,672,400,000
in revenue through the proposed taxation to be imposed,
while, according to Senator George, Chairman of the Sen¬

Daily Average Crude Oil Production for Week

the

ate

from;

owe

simple, standardized GhaitsVprepared by the treasury, r • ' ,V
The special overall 10% de¬
fense
tax provided
under the

•

they

Thursday, September 4, 1941

Volume 154

The
r

FINANCIAL

Number 3S76

Speech That Was Not Made t

(Continued < from Page 19) -

CHRONICLE

to suppose

into

that a new heaven and a new earth have come
existence under Lenin ariS Stalin.
The average Amer¬

ican workman would still have found it in

•

early 1941

most

"backward"

Fosters Free

Enterprise

country.
'
if the assumption is made that such
/ (Continued on Page 26)
In Italy and Germany "democracy" failed, failed not sc
the force 6f competitive bidding.
things can be measured simply in hours worked per week,
"The syndicates that were or¬
wages received analhe like.
To shout to high heaven much politically, and certainly not by reason of any neglect
ganized to bid oil the first three
that should Der Fuehrer conquer and enslave this country of social reform and or labor legislation, but failed
by rea¬
issues offered under Rule U-50
he would abolish forty-hour weeks and do a good many son of the fact that these nations were unable under the
were quite large.
The three synother things which would not please the wage earner here, newer regime to do their share of the work of the world. ./ dicates that bid on the securities
of New York State Electric and
The
is, after all, rather flimsy and cheap pseudo oratory.
It is The result has been first Fascism and then Nazism.
Gas
cheap to add that precisely this is the intention of that latter has found a way to get things done, but, of course, has / 81 Corp. consisted of 44, 50 and
members, respectively, Sim¬
former house painter.
Such assertions can neither be proved made several serious blunders. One of them is found in its
ilarly, the two syndicates which
or disproved-—never mind what Mein Kampf may have to
bid on the Philadelphia Com¬
perverted delight in turning the energies of its people to
pany securities had 31 and 91
Say on the subject or what the opinions of war-minded gen¬ the production of instruments of destruction and to the em¬
members, respectively.
Despite
tlemen formerly residing in Germany.
To add that he may ployment of them for that purpose. Another almost as fatal
this experience several bankers
well succeed in such designs if we do not make more stren¬ error consists of the fact that in achieving production it has
expressed the view that as time
uous efforts than we have been making places too great a lor the time being at least crushed the human spirit and
goes on the groups will tend to
be smaller in size on account of
sacrificed much that the
human being will not
strain upon credulity no matter how the story is told. "very
the tendency of bankers to de-.
long do without, and thus has built its magnificent house
;
But all this leaves the real story wholly untold. - One
mand
larger participations in"
In France those who had been exploited,
would suppose from all the Labor Day oratory that we have upon the sands.
competitive syndicates than they
or thought
they had, took so much pains to exhibit their dig¬
were
accustomed to receive in
found a solution of what is often termed the labor problem,
negotiated underwritings in or¬
that we had been able to banish from this country all those nity and to be certain that they were no longer exploited
der to make up for those issues
that the country became economically and in a military
evils that Nazism claims to have eliminated from their do¬
lost.
;
sense
helpless. The plane of living suffered, and when the
mains.
"It is the view of others, how¬
Nothing, however, could be further from the truth.
test came the alleged exploiter and the allegedly exploited
ever, that, while there may be a
If the cold truth be told, we are about as far from having
both fell victims to Nazi efficiency and production.
/Eng¬
tendency to the formation of
remedied the situation as has Hitler or Mussolini, or, for
smaller groups, there is a rea¬
land, always flexible and easy going, yielded to labor's de¬
that matter,. Stalin.
Indeed it is. conceivable that we are
sonable
probability : that
the
mands again and again, found itself sliding deeper and deep¬
further from that goal than is Germany at least. Both are far
pressures will be such that the
er into the economic quagmire, and when the crisis came, dis¬
bidders for each issue will in¬
enough, however, in any event. It would be going too far,
covered that it not only had not been producing but had
clude at least one large group
perhaps, to say that Fascism and Bolshevism both represent
composed of bankers who were
very nearly lost the art of doing so.
an effort to find a solution of the labor problem, and that
in Hitler's

•

domain,

•

;

•

excluded from the other

Nazism, while embodying other goals, particularly object¬
In This Country, Too
inspired by the Treaty of Versailles, likewise in substan¬
convincing one, to
//// Here in the United States we have had similar influ¬
would not be very
ences at work,
strongly at work since 1932. We have beer
wide of the mark. / We do not like such solutions, and we
so much engaged in seeing to it that what was produced was
are of course well warranted in not liking them, but have
distributed more to the liking of the masses, so much en
we made any very substantial progress in the matter our¬
grossed in efforts to make certain that there would be no ex¬
selves?
ploitation, so enamored of various panaceas from which
Historical Perspective
millenniums are promised that only the utmost ingenuity
This whole subject will be best understood if consid¬ and energy of industrial managers and of applied science
ered in its historical perspective.- ;; What is known as the has saved us from economic chaos—and it is by no meant
clear that all this can very much longer save us. , .An in¬
problem of labor relations emerges from the dim reaches of
definite continuation of present policies in these matters
history; from the time when the; world was composed of
master and slaves, passes through those eras when property can have only one result regardless of war or rumors of war.
was owned
hot by him who created it or even * inherited That result is a progressive worsening of our economic sta¬
from those who created it so much as from those who seized tus until presently we shall in desperation do much what
other countries have done, select a dictator to solve problems
by violence. Slaves became, serfs, then free men, but largely
..without property and without much voice in the manage- ;which have manifestly been too much for us—-unless meanment of public affairs. ^ Customs,/laws, traditions, and the !while somehow we come to our collective senses and place
inertia of the masses-made-exploitation- possible; and it was at least as much emphasis, not in our governmental affairs
jor through governmental agencies, but in our daily lives,
/Zperhai^thejT
// masses liberated themselves politically speaking,and in more [upon ppntinuous, efficient production of the good things oi
than a single instance have taken the reigns of government [life as.upon their division among the various groups aftei
they are produced, and more emphasis upon good, hard
[painstaking work than upon avoidance of it.

ives

tial part is likewise one answer, if not a
the labor problem, but such an assertion

•

«•

Robert H. O'Brien, new Director
of the Public Utilities Division of
the

SEC

Paul

also

addressed

•

'achieved had it not been fdr the work of those who

H inay

employ
likewise be conceded that as over against the
/thent aecomplishitientsralmbst -wholly independent oL lhe ?mbdern, large corporation the * individual* alone and unasso*
v wage earner;; one -iriight say with Substantial truth, in
spite ciated with his fellow workers is at a disadvantage.
The
pfhupi; v^SuchdS/theik^tu^today^hethend
[stubborn fact, however, remains that both entrepreneur anc

wage
ir:A the

earhefeih

danger that the

lands are

likely presently j to land dpOn our shote and oblige the

»facL/

iemplo^ are dependent for their economic welfare upon the
^fecfiyehess and the efficiency of the production; process
and the plain
remains that labor unions, in this country
at Jail events, have never been; willing to give more than lip
service at most to this essential fact;

Indeed it is much

often; that they formally or informally, with plain intent oi
;t worker, along with^^
asTord ahd
master.:; It •lies rather iw thefact that it is to subh plausibly otherwise, act to limit the effectiveness and the efficiency
•With which goods are created for their own and their em>
;
*

presented solutions that -uhthihkihg^ and frail human beings
So long as organized labor takes the formal
turn in despair When they have; made a -mess of managing' :ployers use.
their own 'affairs, and we here in the; United States have position that production is- the responsibility - of manage¬
Shown in recent years a most lamentable weakness to act ment, and the informal and often denied (but actual none¬
theless) /attitude that management must solve production
precisely as other people in other countries have acted in
the past in this respect.
In Russia long years, even, cen¬ problems not only without its aid but despite its restrictions
and hindrances, economic progress must be severely limited
turies of tyranny, exploitation; inefficiency, and persecution
.

/
;

;
v

matter how

much the record may show

of "benefits"
finally resulted not only > in rebellion of the persecuted and
achieved by the labor leaders for their followers.
the;exploited, but in seizure by the viptims of the reigns of
What is much more serious is the fact that at the insti¬
government and acceptance by them of responsibility to set
the country in order—-a responsibility, incidentally, which gation and under the guidance; of professional reformers and
not all those who complain have been willing to assume; cunning politicians, labor is moving steadily toward some¬
no

St.

discussing the
in the simplification of

progress

holding
Manly,
Power

systems,
Basil
member of the Federal

company
a

Commission,

was a

speaker

at the Aug. 26 session of the Na¬
tional Association of Railroad and

Utilities Commissioners. From St.
Paul special advices to the New
York
"Times" reported him as
saying that increased profits of
public utilities resulting from ca¬
pacity production during the na¬
tional emergency should be used'
as

"rainy day" stake by being
to inadequate depreciation

added

reserves.

He also told the Commissioners
that in his opinion the executives
of American utilities did not "de¬

sire or expect" to earn excess
profits from meeting the demands
for power

arising out of the

added,

according

"With

exceptions

rare

the

"Times" advices:

cooperated

they

wholeheartedly

with the government in meeting
defense* demands
and
in ; those
cases

where efforts-may be made-

to convert the nation's power re-

•

■'

>;*'i

i
V

quirements into additional dollars
of

excess

profits, the regulatory

processes, of the State and Federal

Commission

should be, and will
be, exerted effectively to restrain
'■ V

them,"

In the St. Paul "Pioneer Press"

stated

was

adopted

proposal

that

delegates
opposing a

the Inter¬

empowering

Commerce

state

the

resolution

commission

prescribe sizes andweights of
trucks
operating
in
interstate
commerce.-

•

Another

■

resolution

adopted
President of the
association to appoint a commit¬
tee to investigate conditions faced
empowers

the

by public utilities

result of

the defense program.
J.
D.
James, Missouri

public

Utilities Commissioner, was elect¬
ed President of the National Asso¬

ciation

Railroad

Securities

and

Public

Commissioners

Col. Frank W. Matson of St,

and

Paul,

Chairman of the Minnesota Rail¬
road and Warehouse
was

elected

of the

first

Commission,

Vice-President

Association; other officers

elected;

were
Wade O. Martin,
chairman of the Louisiana Public

Compared with the chaos of 1917 or 1918 conditions in Rus- thing approaching union monopoly of work in this country Service commission, second vice
are doubtless -greatly improved, and * the achievements of Heretofore, large elements of unorganized workers in most president; Ben Smart, Washing¬
ton, D. C., reelected Secretary;
the nation since attacked by the German legions strongly ^industries tended definitely to hold the unions in check
and
John
C.
Benton, also
of
suggests greater ; accomplishments^prior to ? that time-than /The- time now appears to be approaching when he who un- Washington, General Solicitor.
zvoisiihi. W; (Ctnitinued on
Page 28)
had been commonly supposed to exist/ but ik> one is likeiy
York City, ceased air-tiff August
sia

na- ra¬

tional defense program.

•

the

convention,

have
/ j There
they have acquired: "the dignity to which they are entitled.';
always has been, there is now, and there alway.
But have they acquired a relatively: more independent and iwill be so:
long as private enterprise continues, a legitimate
:
secure existence^ economieally*
speaking? ^The question is field of competition between those who undertake business
?
Certainly an open one,/except So' fart as avoidanee • of ex- ventures and those employed in their execution./; It, oi
.ploitation is concerned :-- Such improvement of their econ* course/concerns the division of the products of the joint en
V;omicstatus as has occuFred certainlyveould never have been deavob./There is and there can be no complaint about the

•

syndi¬

cates."

CHRONICLE

FINANCIAL

chat Labor Day

Statistics For Grude Petroleum And Refined

to make

serve

Petroleum Products During

Month of June 1941

higher.

J-F;/:*':-':t

The

4,392,000 barrels, hence the operating ratio was 88%, compared with

sacrifice too

great,

liberty and the heritages
dear shall thrive and

that

19401,

68% in May and 84% in June

snail defend our dem¬
the utmost, with no

and

hold

of the

spread for the good

peo¬

ples of the earth."
DEMAND

AND

SUPPLY

;»tA* New Supply—

June

••
'

Domestic

-production:;;'

Dally

.jiNatural

•

;

115,027
•

gasoline

Benzol b

Total
A

Ia boud

Decrease

ill

stocks,

Demand—

3,866

earners

21,800 '

3,488

1,850
V

1,500
■*-

1744

127,322

129,494
-

><1,134

3:125

d2,416

'A./Aii;

7,167

V
-

754,378

4,145

4,101"

•

that

might

demand

-ftpaily' average
Exports c:
•

Crude

•

Refiued

'"' A

.A—
" ;

•

fuel

Residual

r. Lubricating

3,918

oil *^_i

—

168

Road

-..JO

r.:

Losses

/ * ^A

55,453 A 308.834

s*.

•

•_

188.014

•

;-2,146

144
3.011

866

*-*:•.• 78-

525
-

597
A.

509

3,751

3.347

3.137

13,176

10.369

r.1,275

-2,573.!

6,759

7,059

6,418

36,821*

35,837

207

2.487

812

1,159

8,845

106.416

707,287

642.80V

3,897

3,547

3,908

that

3,532

petroleum:
fteflnable in U„ S.

259,075

in California
gasoline

Heavy
Refined

259,075

13.334

10,711
6.235

7,000

276.415

283,905

276,477

283,905

555.623

"566,210

552,4^8

566.*1*

occasioi

rededicate

our¬

133

145

;'■! 127

132

n.>,

141

Coal

b From

ail other

Bureau of Mines:

Division,

Economics

Imports .of

crude

reported

imports and exports from Bureau of the Census,

ing with

their
:

CRUDE

BY STATES AND PRINCIPAL FIELDS'

PETROLEUM

(Thdusands :of barrels)

and- management

from

June 1941

turns from

the

Total
Arkansas

_______

California—Kettleman

Hills-

January—June

Daily av.

1940

1941

Dailyav.

;1 . 2,16372.1
.-'.1,152
- v 38.4

-j—1,233'^V-'!41.3
.Wilmington /.-X—
:
' 2,491 "
83.0
Lpng Beach

Total.. California

Colorado
lilinoiJ

———

Indiana

—

•'

T_—^

Kentucky

u,:,

Coast

Rodessa

have

willingness and eagerness
our nation fully in the
made

the

them

upon

needs

Rest* of

4.9
338.7

State—;--—:

13,260
-

82,371

111,849

210.2

14.5
56.1

781

14.6
53.9

those

37,612

2,550
3,681-

•> :

2,746
9,844

8,659

55,325

Tctixl Louisiana

-•:*

;

9,696

323.2

314.5

6,964
4,240

♦

8,721
52,023

4. 1,614

11,057
1.341

•

our

ponding period .of last year.
In¬
from marketings of $4,899,-

the

returns

animals, dairy
poultry, but re¬

products,and
from

turns

from .cotton, anc^

meat

cottonseed,

all

groups

world. '

;

613

3,575

3,348

3,272

109.1

108.7

3,094

19,127

20,121

14.1

14.0

402

2,499

2,611

Americans and

1,501

the

blessings

and

Mexico—,

Ifew

Qhio

Total

East

Coast

Texas

—

><nRest

co' have

totaled

Total

—

State——

18,664

—

A;44.8

.379.6;

honor

65,411

44,314

free

men

367.9

10,549

65,741

72,088

free

1,766

13,026

,13,375

13.5
311.1

518

2,595

3,820

8,848

1,403.7
1,400.3
38,178
,280* ',! 9.3 A- 9.4
276
;'A 799- : ,26.6
27.2 .A
776
427
-f 14.2 A /
14.0
! "1 416

54.885

>41.6

A, 45.4

A" ;82.4

86.6

Total

-Wyoming

------

2,472-

—-—139'.

£> Total United St^tei——

4.6

3.834.2

115.027

918

7,261,-

3,773.4 A 111,690

Tae

than

usual.

larger-than

the

687,901

Only

Includes Missouri

(4), Nebraska (134), Tennessee

Let

God

(1), and Utah (—) In June 1941.

spend

Uninterrupted Production Of Defense Weapons
President Roosevelt,

By President In Statement
in

here in America thank

today

these

for

Labor Day statement made

blessings
great
gains we

Apd let

July

income

in prospective ♦ supplies
.for. the principal farm*
product? Since- mid-June, when-

Changes

and prices

was

that

estimated

income

farm

about
about

cash,

total

farm

from

fom 1941 -would

ings

market-"

- to
$10,000,000,000, have been,
as. expected and the present

amount

estimate of cash income from farm

marketings for'the present-calen¬
dar year

is unchanged froih' that

made in June.y

Government

the

slightly largei

was

After

the, different

rom

products,

The

payments-

are

ex¬

in¬

rest

.of

this0 calendar

year."

probably will' eqtiat or -exceed
slightly those of ifoo same? period
in 1040,

.jn..

y.-

Speech That Was Kol Made

terms

(Continued from Page 21)

economic

venture must

■,,

If the unions

remain inactive.

accept union dictated
are

already exhibit¬

ing the infirmities now commonly observed, what will their
attitude be when they no longer have to trouble themselves
abcut

:*:ntly

the

last

eight

us on

alone,
not

united
we

are

the "growing pains" of the

farmers

and

hibit

mation
more

that there must be full and uninterrupted produc¬
tion" of the weapons and materials needed for?national de¬
fense and for the nations resisting aggression/ - .

liberty

our

utmost, with-

sacrifice

and

too

the

people

labor and
so
tha"

heritages

hold dear shall thrive and.spreac
for
the

the good ;of the peoples' o'
-eartH^ifo'f
r.--v*

move¬

consum¬

devoutly to be wished," but a glance at the older

"aristocratic" elements, such, for example, as the rail¬

road brotherhoods which have been mature for many years/

and

incidentally

enjoy

complete

monopoly,

scarcely

prompts a feeling of great assurance on the point..
many

productivity, of labor.
to be

ing

Ger-:

We do not for

a moment believe it

desirable one, or in the least likely to be an endur-,

one,

but candor compels the statement that

the

opposite direction.
shall

sooner

Indeed

we seem to

pur

decay,

or :

cherished institutions in

deadly danger than they

solves doomed to economic

are

now—or else our--

perhaps, both, quite:
aggressive intentions in our direction*
or,

regardless

which may

be entertained by Hitler; '

any

even

be moving in

-It must be solved satisfactorily,

later find

,1'

•

;

/./But. nothing of all this was heard in any Labor Day ad-'
dress of which we can find a record/dim

in this

country, so far from having found a solution, have not

seriously tried to find one.

much

has for the time being at least solved this problem of-

democracy

great,

set of qualities.//"'Tis/a

wholly different

alone,

alone, but

determined

defend

"labor

ment," that when labor unionism comes of age it will ex-?

workers

employers

not: as

shall

not

It is often said by apologists that what we. are now ex¬

periencing

that

resolve

to the

Pointing cut

social

this Labor
Day of 1941 make anew the high

public at the White House on Aug. 30, asserted that labor
management ''realize now and I am sure will continue

to realize

and

made

years.

and

the

and freedoms and for" the

economic

Is Demanded

dem¬

hear uncensored radio programs.
v

have

free

to read uncensored news and to

5,035
51

adjustment for
the seasonal variation in income

workers—

women

11,984

667,338

free

worship,enjoying
right to speak their minds,
in

day

2,600

14,588
673

and

fellow-countrymen

255,357
1,707
.4,349

democracy

: a

could workers and their

ocracy

56.349

243,220
v/ 1,681
4,768
r 2,559

'2,110

4.4

Other

to all. the world

country.

75.9

tobac-/

increase

of. more.than tbe usual seasonal/
amount
from - July, to F August;

: U//.; -.•*A; pected -to. increase substantially,
increase In income from in the next few months, and for

June

crystal clear to all

millions

64,107

42,866

76.8 /

the

needed
needed

democracy could there
day set aside to do

6,583

9,914

>13.3
f 312.7.

9,381

*9,059

such

254.4

42,110

8,117

1,335

Only in

78,800

,364.1

400

.1,246-A

State..

45.4

38,182

75,875'

377.5,..

un-

emphasize its freedoms.

257.2

2,302

i.,

to make

serve

21,402

'40,067

12,752

■

Texas

—

Rest

3,358
6,195

415.6

com¬

result

-earlier.

year

This Labor Day of 1941 should

19,216

220.3

10,924

—

A—
West Virginia -A—..:
,—
Wyoming—Lance Creek —___
Salt Creek!
„_1

v :•

421.7"

7,715

—

—-

222.2

-■

11.388

Texas

Rodessa-

! 260 •> 1.616
;-3,199
17,144

92.3
105.94*:: 103.0

651'
1 345/

Panhandle
-

9.5^ 44:9.2

—

Pennsyl^anH
/West

6,664

Oklahoma

Texas^—Gulf

19.7

t {93.6

-2,809

of. State—

--Rest

Uity-»-_

—3.178

JSeminole

■i

284

—

Oklahoma—Oklahoma
•

422 i /

.-.compared

responsibility for the advancement of production.

36.8
29.1

New 'York"-——

^ ! 38.9
' 28.6
4}- 20.6

317

modities except gra ns and

realize

production

1,169
Mississippi
853
Montana
—IIj——617

Michigan

with,
last
year.
Although
marketings
of
grains A were restricted somewhat
in July by the small movement of
wheat, the increase in income
fromgrains from June to July
was
greater than usual.- Income
average

*96.0 in June and 71.0 in July

unorganized groups of workers? The time has evi-i
come when these organizations, which without ques¬
also by the nations engaged in
tion could be a powerful factor for economic advancement/
opposing those who would do
*ave careful reconsideration to their policies, and came to
ajyay with the liberty and happi¬
a decision to take upon themselves their due share of the
ness of free peoples all over the
for

39,691

568
1,462

and,

now

must be full and

and materials
protection and

weapons

31,323

2,420
42,735

419
6,629

of the:

99.0%

was

come

nation*

our way

continue

will

f interrupted

1,732

of life is

They realize
sure,

636

3,376

1924-29

—>'

—

July

dertakes

A that there

78.745

.-,

5,343

13.0

79,241

111,221

O *

60.954

347

246.9

j ;

121 :

15,194 jf<

17.6

230.3

8,128

8,717

14,895 -AA 15,135

r—

for

life.

12.664

7,563

whose way

1940

12,846
7,020

18,524

623.2'

>.,17.7

434
1,684

;

2,534-

460.7

' i 12 8
.7,5781 ,1252.6

Kansas

Louisiana—-Gulf

530
6,908
9 *5'.

72.1 r 2,119 £
38.5 .
- 1,407
41.5
-'1,323""

82.5

14,286
* 476.2
19.168
.638.9
A '"153
5.1
10.40511:- 346.8

Rest

.11

re¬

crop?

increased

protection of the Americas

and
June

The increase

co±e

resulted largely
marketings
of from fruits t-and meat
animals
corn, fruits, and vegetables and also
increased, more than usual,
the redemption of cotton former¬
from June to July whereas the
ly placed under loan/ whereas re¬
change in income from most 'of
turns from all groups of livestock
the other groups, was about nor-A
and/livestock
products
were mal for this-period of the
-year. /
sharply higher than a year earl¬
During August large quantities
ier.
Government
payments
in
of wheat have been placed under
July amounted to only $15,000,JG0 compared with $35,000,000 in loan, and the movement of othercrops to market has made about:
July last year and $25,000,000 in
the /A usual.;; seasonal - yincrease.•June.'*""
yA-^;/*/-» Prices received
by farmers appar¬
f' 'For the first' 7 months/of 11941
mid-July
•cash income from /farm market¬ ently, increased/from
to
mid-August.
Higher
'prices
ings > and Government payments
and a normal movement of farm*
totaled
$5,242,000,000
compared
with $4,532,000,000 in the corres¬ products^ to; market probably will,
Jrom

May 1941

anc
anc

Sharply higher than a year earller, oven though a myen .smaller
than
usual -.proportion - of
the
wheat crop was sold or placed

'
•

/A-a/! <fc-

crops

serve

demands

have

shown and will continue to show

to
PRODUCTION

American heritage
a
part tq play.

our

all

Labor

d Increase.

successful completion—

its

-—we

Revised,

such

and you and I know it will br
successfully completed in keep-

276.477

;

13.334

7,000

.11,241.
5,856

supply

ore

particularly fitting

take

Labor. Day to

261.971

6.235

all oils'

'j Days'

261,971

552.498

products

'/Total,

262,111

10.711

■

Natural

selves to the task that lies ahead.

•,

CJrude
'

ion.

10,022

120,816

Dally; average _L:

?;StOCk3—

900

1,696

121,296

demand

and

America

both

selfishly and unstintingly dedi¬ with $445,000,000 a year earher.
cate himself and herself to chat ,The greatest increases in income
/cause in full measure of devo- ifrom
market, ngs
have
been

2,387

15.043- -11,806

says:

Returns

from livestock and livestock pro
ducts
in
July this year
were

serving that democracy and we, !j00,000 was $812,000,000
(20%)
too; will, offer; our utmost in Aiigher than in the corresponding
labor and sacrifice just as our
:period of 1940, but Government1
fathers and our fathers' fathers
payments so far' in 1941 have to*
did.
Every one of us will un¬ Taled only $343,000,000 compared

169,057

25,048

wor-

speech

faced with the great task of pre¬

84,887

4 043

domestic

Today

35,048

2,732

freedom of the press...

278,622

92,626

770

Total

419

gas> ■'

ship,'. freedom

35,042

Miscellaneous

•

3.952

30,372

freedom of

believe in

26.415

-A:

happiness

and

liberty

cherish
and

43,716

;*"*: A 1356

oil

& fctlu

15,793
30,458

7,028

4,105

;u_i.

4xX*

v-.*- -

8,516

4,501-

580

Aspualt-

11,074,

3.171

wax

59,325
-

29.200

y OokO-

3,917

5.692
•

'*'••*:

•'

10.842

oil

-4,163

•':'

5,473

58,413

oil

given

keep

712.938-

753,538

-".*"4,021" -

4 339

5.217

120,624

1
3.934

*.//.;/J

—

.-A
■'

Itiei -*__;•

Motor

Distillate fuel

4,214

-A?

Kerosene

4.348
•

petroleum
products

Domestic-demand•

■-

130,628

■■//•• ".i.::''A:-;:'

' ■

130,447

freely

alight The
altar of democracy for all who

J\ \J.' ■; l:y /.'*'//, y;TX

haveJ been

icans
a

d41.440

,11.456

.A-';''i."

The labor and

sacrifice of generations of Amer¬

12,400
8,116

4,100

123,040

4,177

742,082

942

great democracy.

790

.14,193

2,056
^

1.633

17,352

214

Tdt'al

rec¬

of the nation's wageand their work in help¬

ognition

3,933

;•

spirit

ing to build our country into a

oils-«-.-^-i.

all

3,860.

>:$ 200

4.244

•

715,720

3,878

serious

established in

/ of the holiday

1,478

698,708

—

i"—

average

"-1,749

116,354

3,950

4,332

263

1941

and

Buieau
i

ander loan. :

than in all of the 54-year history

:> 26,341.

29,621-

-4,401-

288

4,013

"*1

5,181
v.

122,445

average

y Refined, products: lor domestic use
/v ;/'■*■
••
-In bond
Ifcotal; new supply, all oils-—
-f. Daily

3,780

274

Day

thoughtful

687,901

Roose¬

follows:

was

called upon to observe

are

Labor

1940 '

3,687
'

"■■■■■'

667,338

3,723

120,396

'production

•

111.690

3,773

5,095

Imports c: '
■ :
OCrude petroleum;' For domestic use
■-IS

..1940

.1941

President

message

January—June

116,976

3,834

L_______—

Daily

1941

.i.

•

-I//——

average

June

May

1941

petroleum

y Crude

velt's

text

The

ALL OILS

//-A/,/A/ (Thousands of barrels)

marketings and Government

July last year, and $104,000,000 more than the
$798,000,000 fGr June 1941, the Bureau
of Agricultural Economics, U. S.
Department of Agriculture/
reported on August 26; Aln its details of the situation, the

resolve

labor

farm

than in

united and determined

income from

revised estimate of

years".

ocracy

was

last

eight

people

by data in this report

Cash

payments in July totaled $902,000,'0C0,.$194,000,000 (27%)'
great

the

for

and

the

that "as

crude-oil capacity represented

Skyrocketing Over Preceding Months' Total

bless.ngs

also called for a new

1941 was 59.9, compared with 55.3 in

May 1941, and 50.0 in June 1940.
:;vn

economic and social gains we have

K-/'%A/*;'-

According to the Bureau of Labor Statistics, the price index for

petroleum products in June

these

for

freeuoms

ana

made
'*

July Gash Farm Incsme Wet! Above Year Ago

world

President

ahead of last year but stocks are also nearly that much

the

emphasize its freedoms", the
urged that we "thank

.-v

God "today
about 40%

Vshould

year.

all

the blessings of a democracy and

(Continued from Page .18)

this

crystal clear* to. all

and -to

Americans

Thursday, September 4, 1941

Volume 154

these

/,?*v ' V' i(Oontinu'ed ' from

Page

jdepartments spent another $94,000,000 fcr so-called

defense purposes

that was not charged to their regular bud-f
gets.
And every voter should understand too that these
outlays have risen because Congress itself has been spending
more on investigations, cn beautifying the Capitol grounds;
etc., and because suych reform agencies as the SEC, the Fed¬
eral Communicating-Commission, the Anti-trust division of
the

Department of Justice, and others,

adding lawyers
long since been

were

and

professors to their staffs which had
swollen to record proportions.
7

have continued to mount

•

ments of the Veterans

despite the

crisis. Disburse^
for pensions and

arms

Administration,

other purposes, in the first two months of the new fiscal yeaf
footed up ;to $91,493,000, ^ slightly, above last year's , peak

totals, and the distributions handed out by the Social Se¬

curity Board, for pensions, and various other aids, rose to
i $96,000,000, almost 10 per cent more than in the preceding

£ fiscal
v

year.

„

tin in July 1941, is estimated at 18,100 long tons, compared with 19,300 long tons in July 1940-.
Production for the first seven months
of. 1941 was
Of 1940.

-t

147,900 tons against 125,109 tons in the first

seven

months

j gi;

current

Congo

June>

1,254

3,531
French

Or reduce

Indies

Not

130

—l.CSlj

4,091

—17,050

4,935

5,074

yet

available

>..••••.,.

3,948

1,748

-V

+2,161

3,803

1,075

—6,692

;

United States deliveries totalled 12,575 tons in July 1941, against

14,880 tons in June 1941.

For the first

states

92,947

deliveries

totalled

the corresponding period of 1940.

The average cash

ibly
is

was

£258.<i

•

month if

the

V
If.

mo¬

inflation

danger Mis

reserves

The Market

excess

■

cut

are

$1,000,000,000, the market is

l-940vi*'fr:,x-

The sales of $17,000,000 bonds
by New York City banks in the

Page

18)

third

from

cer¬

THE STATE OF TRADE
(Continued,

tain to react bearishly
for a
time, anyway.
Already some
selling has been based on antici¬
pation of a requirement boost.

: i

Y-

week

stance,

August,, for in¬
attributed directly

were

this report by traders. . .
L
And although surplus funds of

priorities while the shift to defense work goes

$4,000,000,000 still

•

precipitate decline in residential construction from
the high levels of previous months is anticipated by build-l
era
during September^ cBefly- because of > increasing tight¬
ness in
supplies.;
)\
not
Building materials suppliers report that the armed ser4

down

below

level?
of

tremendous

are

when

remember

—

-A

the

they

were

billion-dollar

the psychological effect
step alone would be en¬
to knock down prices a
—

this

ough

point or more.
*
\
they are not gainfully employed whether or
Another
angle is that excess
they are in need. '
* " .
'
;
_
:
' . < vices are commandeering materials, and that private con¬ reserves are
unevenly divided.
This committee itself estimates that its plan would sadSome banks are feeling the
struction is being deprived of supplies.
Builders expect that
die upon the Federal Treasury a cost of $3,000,000,000 to $4,homes costing more than $7,000 will be discouraged by de¬ pinch of skyrocketing loans right
now.
A further reduction in
000,000,000 a year, yet of the committee of seven, only one, fense officials
through priorities on materials.;
their
surplus
funds
certainly
Senator Green of Rhode Island, dissented from the brazen
would run over into their bond
....#! Latest advices from Washington state that the adminis¬
proposal. - Naturally no justification can be advanced fcr tration
portfolios.
today gave defense absolutely first call on all the na¬
the Downey scheme in view of - the fact that the United
Finally, the market is thin.
tion's industrial resources, and .consumers were told they It's sensitive.
It's dominate*!
States already makes the most generous provision for its
could expect to feel the pinch soon.
Mr. Roosevelt an¬ by a few traders and a few large
.aged of any. nation in the,world and in consideration of the nounced that still more
institutions.
:r
money would be expended for de¬
need'for slowing down the rapidly rising burden upon the
While the move is being dis¬
fense orders—the program already tops $50,000,000,000 —
counted today,
Federal Treasury of the existing program.
it seems highly
Nevertheless, it with the
objective of producing still more supplies and of unlikely that Government bonds
is all too clear that unless taxpayers mobilize effectively and
would accept news of this kind
getting two and three shifts to work in the plants.
What
quickly, they will not only be unable to slow up the rising was inferential in Mr. Roosevelt's
H;
statement, the new super- without some reaction.
trend of pension costs, but will actually be forced to carry
board stated in so many words: ■
Financing Tactics
heavier burdens to satisfy the Townsendites* demands, which
"Cur general policy is simple," the board announced;
The point is, then, what about
are
being pressed regardless of the danger that they might
outlining its plan of operations.
"Production shall be stim¬ Secretary Morgenthau's Septem¬
ber financing?
bankrupt the nation or interfere with its armament effort. ulated and
Would Mororganized to the limit of the nation's resources.' genthau
permit a declining mar¬
But there are other soaring Federal expenditures, which
ket at a time when he Wants to
are even more difficult to
justify than the rising pension day, however, these stocks must be liquidated, perhaps at a refund and borrow a few hun¬
costs and certainly the gigantic farm relief budget is out¬
price that would add many millions of costs to the current dred millions?
Offhand, the answer is "no".1
standing. : During the past year, Federal purchasing and expenditures for growers handouts and loans.
And that leads to the con-,
While the pension and farm costs are outstanding, par¬
price-pegging loan programs have driven the index of farm
elusion
that
the
Reserve
products prices some 32 per cent higher, at a time when ticularly since Congressional blocs in each case are constant¬
Board's action on excess re-'
other commodities were advancing by less than half as much.
serves will depend entirely on
ly pushing fcr further increases rather than reductions, there
the Treasury's September fi¬
This huge jump has given the nation's producers their longT are numerous other
examples of unjustifiable Federal ex
nancing plans..
5+
sought goal of price parity and will provide them with a farm penditures. With industrial employment now well above
If Morgenthau
skips the Sep¬
cash income of $10,000,000,000 this year, twenty per cent
39,000,000, and several millions greater than in 1929, there tember financing date, a cut in
more than in 1940 and about the same or perhaps more than
can
simply be no justification for WPA disbursements run excess reserves probably will
.-»

the

...

can

getting a serious hearing
Washington and Eccles' posi¬

effects of the

that every investor in Amer¬
ica is well aware of.
•
v*

for Straits tin in New York was 53.66 cent?
per lb. in July 1941, as against 52.69 cents in June.
The average
price in July 1940, was 51.59 cents per lb.

on.

reduction

one

Y; ^ The average price

$1,885,000,000

tion

ton in July, 1941, compared with £262.9 in the previous month
£ 265.8 in- July,

^
the

now

price for standard tin in London

$4,- *

in September—if that poss¬
be arranged—for Eccles

Step

j }' World stocks of tin, including smelters'. stocks and carry-ovei
increased by 327 tons during July 1941 to 56,302 tons at the end o
the month.
Stocks at the end of July 1940 amounted to 48,830 tons:

per

about

\
;
The feeling is, incidentally, that
the Reserve Board will take this

months of 1941,'United
tons compared with 57,934 tons ii!

.v:'. v.

place in New. York,
surplus funds amount 'to

ment.

seven

re¬

banks.

1,103

jLe Institute announcement further stated:

the

take

where

only

most

would

4,536
10,243

1,406

.r-™--

Thailand

And

♦

slash

excess

them to

000,000,000.

Jvl'ti

—2,793

130

—

Bast

-•ffgeria

End

1,845

8,243

Indo-China

Malaya

July

4,007

total

of member

serves

May

Belgian

would

move

about $1,000,009,099 from

Exports from the countries signatory to the International Tin
Agreement, and the position at the end of July 1941 are shown be ?
iow in long tons of t.n:
-

expenditures for pensions have mounted steadily;
of course, because the law's benefactions naturally become
: available to
increasing numbers of the population as it ages,
and in addition Congress, and the legislatures of the 48 states
have "liberalized" the original pension statutes to increase
the number of recipients and the amounts each receives!
:But despite the skyrocketing trend of the Social Security
•.Board's outlays, many Congressmen are still bitterly dis¬
satisfied.
A Senate Committee : headed byv that eminent
Townsendite, Senator Downey of California, has just come
out with the bald-faced proposal that every individual in the
nation over 60 should receive a minimum pension of $30 a

Reporter On

(Continued from First Page)
That

and
-

The

t'er

According to the-current issue of the "Statistical Bulletin!" pubf
lished by the Tin Research Institute, London, world production of

payers should be told that expenditures for purposes dear tq
the heart of all politicians and especially to Congressmen,

Ncth.

Turning from the regular departments, voters and taxm

CHRONICLE

£&>^MUMI FOR E)»^.; IrWorM Thi Prffiduciicafrqps Sefcw,
^'.'V
>*•.
w

r'Af-

FINANCIAL

Number 3976

...

.....

...

(

•

in 1929.
In the face of all this

vrrB

'••V

,7.;
£

prosperity have the emergency
relief disbursements for farmers been curtailed materially?
While it's a bit difficult for any but the most expert account¬
ants to determine the exact course of expenditures of the
dozen or more emergency agricultural agencies a casual in¬
spection of the Treasury reports indicates that agricultural
relief outlays during the first two months of the new fiscal
year amounted to about $120,000,000, slightly below the
$140,000,000 for the same period in 1940.
Now in view of
growers' prosperity and the huge cost saddled upon con¬
sumers by the boost in farm prices, it would appear that tax¬
payers have the right to ask for a genuinely sharp reduction
in outlays for farm relief, ■/ However, as was the case with
pensions, unless taxpayers mobilize, they may have to ab¬
sorb higher farm costs.
Wholly unsatisfied with the terrific
'boost in farm prices the voracious farm bloc recently at¬
tempted to jam through a law further increasing quotations
by requiring that all government stocks be kept off the mar; ket for the duration of the emergency, regardless of how high
prices rose.
Fortunately, • President Roosevelt vetoed this
outrageous grab. .This step serves to remind taxpayers also
that the current budget by no means reflects the total actual
cost of the farm programs'."1 Current high wheat and Cotton
■

$90,000,000-a-month clip,

come

this

month.

And

the

as they have been in the
market may be helped by a Treas¬
With the current acute shortage of stee'i ury announcement that there will
and building labor, taxpayers certainly are entitled to chal
be no quarterly
borrowing "be¬
lenge Federal outlays for reclamation projects, which in the cause of the size of tax anticipa¬
tion note sales and defense sav¬
first two months of the new fiscal year were almost 20 per
ings bond subscriptions."
;!i!
cent higher than in 1940, and for the same reasons they have
If he doesn't dare
postpone, a
the right to ask why expenditures for road and highways cash borrowing to later in the
Fall, the cut in excess reserves
should continue to increase despite the emergency,
v.':k :President Roosevelt has endorsed the Byrd economy may be delayed until October pr
November.
move, and has even set an example by vetoing a highway
It's all supposition, admittedly.
But the point is that informed
pork barrel bill (which Congress passed over the veto) as
well.as his veto of the farm bloc's grab, 7. True, in view of sources are becoming convinced
a
reserve
requirement boost .jof
the New Deal's responsibility for the state of Federal fi¬
some size is near.
; '
' ' "
'
And that conviction implies a
nances, Mr. Roosevelt rather than Senator Byrd should have
taken the leadership in the move, perhaps by pointing out recognition of the fact that to
prevent
just which sections of the budget could be cut. j thorities inflation, Washington au¬
are resigning themselves
•Nevertheless, the fact that the number one New Dealer to narrowing of the * nation's
has endorsed economy, combined with the proposed bring¬ credit base—to some reversal in

ning at

past two months.

an economy drive.
The keynote for such a drive might
well be the almost unbelievable fact that non-defense expen¬

ing of new millions into the ranks of taxpayers, and the na¬
tional emergency make this a most propitious time for start¬

the

major

policy of

easy

that has been part of

money

the Roose¬

velt Administration since 1933...

ing

The

Refunding

Ordinarily,
postponement
of
are now running more than $8,0007
the quarterly borrowing would be
virtually-double the total of all disburse¬
iniprob^ble;,,. foij
^lorgenthau's
prices are possible only." because*, all-time record /surpluses ments, defense, relief and regular; during the last year-before' avowed' poROv1 is to refold Govare being kept off the market under government loan.
(Continued on Page 30)
!*
Some the New Deal took over.

ditures of the

000,000

Treasury

,a year or

FINANCIAL CHRONICLE

Our

"Governments"
ernment

maturities

note

prior to the
whenever possible.
.

But

the

three

dates

due
.

December

note

Delaying

of the Administration

rate is only 1% per cent.

pon

refunding of

this issue, therefore, wouldn't

much.

mean

the

September borowing

undertaken, we should expect a
$500,000,000. to $700,000,000 cash
borrowing to -accompany it. > . .:.

•

Agency Borrowing
One thing

appears fairly sure
(in this time of uncertainties in

all policies).

And that is that

•

the HFC will be back to the mar¬
ket

to borrow

$300,000,000 to
$350,000,000 of new money.
.
.
The British Treasury is draw¬
soon

ing heavily on its recent RFC
loan of $425,000,000. »
.
It al¬
ready has taken out $100,000,000
and is. taking another $100,000,000 soon, according to reports.. . .
The
RFC, therefore, will be
needing more cash in the near
future.
And this major Government agency may enter the
market for funds any time this
.

month.

.:.

■

maturities go, the
refunding on the
calendar until mid-October, when
As far

hasn't

RFC

is expected to refund $300,000,000 %% notes, due Novem¬

ber 1.

Other Refundings

USHA has

On November 1, the

$112,000,000
too.

due

notes

These may be repaid in

cash, for the amount is so small.

November 15, the CCC

has

$204,000,000 of 1% notes due. . . .
A refunding and cash borrowing
is considered likely.
v
And that just about covers the
refunding calendar until 1942. . . .
Considering the fact that Mor.

possibly

couldn't

genthau

have

back in
the mid-3Qs, his division of ma¬
turities is turning out beautifulabout the

known

ly-

•

Dealer Opinions

■

Of six dealers checked: ■>"*!.
Four looked for lower prices
over

the next six weeks or so;

expected a continuing- ;
ingly
dull and fairly firm
market until later in the fall;
All except one. admitted consid¬
erable concern
over
the longterm trend of bond prices. . . .
Two

from the

show that while first half net for

regards banking and credit, par¬ corporations making aircraft and parts show a 6 per cent
ticularly central banking and suggested restrictions of credit. decline in earnings after taxes as compared with last year,
although before such taxes they show a gain of some 127%.
Entering A New Period
Fifteen chemical companies included in the Board's list did
Clearly we are now upon the threshold of a period when not do. quite so well as last year after taxes despite a 58
the course of corporate earnings will differ quite materially
per cent gain before taxes.
A number of other groups re¬
from those of the: past year, particularly the course of earn¬
vealed but slight gain despite higher rates of activity.
Only
ings which corporations are permitted to retain. For a con¬ a few, such as the steel and iron, and rubber products show
siderable period after our armament program was launched,
gains after taxes comparable with what appears to be the
indeed until rather recently, there appeared to exist among
impression in some quarters, and it is to be remembered that
many the rather easy assumption that despite the Presi¬
large percentual gains do not necessarily mean large profits
dent's repeatedly reiterated determination that no one
by any means.
Whatever may be the increase in volume of
should profit largely by our preparedness effort, most of
business done, and whatever may be the earnings showing
the larger corporation with substantial war orders, and many before Federal
taxes, it is clear even from the record to date
other enterprises whether they received such orders or not,
that the armament program is not proving and will not prove
would find a way to make very substantial sums of money, an
unexampled boon to corporate profits. .■■ •
if not indeed to grow rich at the expense of the "emergency."
But as all students of the course of earnings well know
Labor has been repeatedly pointing to enlarged corporation
the record of past performances is but a poor guide to what
earnings as supporting its demands for higher wages and va¬ may be expected of the same enterprises during the next
rious other concessions.
First half results have, it must be
year or two, and it is to future, not past, profits that the
said, lent a certain plausibility to this view, possibly even financial
community must look for guidance in considering
when the enormously
enlarged burden of taxation is taken investment programs, and the like. Aside from taxes which
into account.
Competent students of such matters have, of are a study in themselves, and of which it might almost he
course, not become unduly elated, but there has been a feel¬ said that
they affect each corporation in a way and in a de¬
ing of some satisfaction with earnings, particularly when gree different from any other, there are four major factors,
they have been compared with the prices of securities of the all of them more or less indecipherable at: the moment,
companies in question.
which are certain to leave their impress on corporate earn¬
But however all this may be, it is plain that we are now
ings during the months' and the year or two to come.
The
reaching a new stage as regards corporate earnings. 4 Higher first is one Leon Henderson (possibly presently aided and
taxes and costs, especially labor costs, have even now
begun abetted by sweeping new legislation) who after the manner
observably to take their toll.
Recent studies by the Division of General Johnson is strutting and screaming and acting to
of Industrial Economies of the Conference Board indicate
control the prices at which manufacturers may sell their
that the tide turned early this year. The Board's index of cor¬
goods. The second is like unto the first except that it oper¬
poration earnings after re-allocation of Federal taxes applic¬ ates in reverse.
It is the tendency among the New Deal
able to the first and second quarter stood for the latter at 159
managers, and perhaps even more so far as agricultural
after taxes and for the former at 144 compared with 163 for
prices are concerned in Congress not only to wince and re¬
the fourth quarter of 1940.
The rate of business activity lent and refrain when farm product prices and wage rates
was, of course, much higher this year than last.
Figures are under discussion, but in many ways even to encourage
same

Stamp Program Food

September

of Agriculture
announced
Aug.
2? the foods
which will be nationally avail¬
able during September for pur¬
chase with blue stamps by famil¬
ies
taking
part in
the Food
Stamp
program.
These foods
The Department

obtainable

are

source

local

Electric Output for Week Ended Aug. 30,1941,
Shows Gain of 17.8% Over Like Week Last Year
The Edison Electric Institute, in its current weekly report, es¬
timated that the production of electricity by the electric light and

industry of the United States for the week ended Aug. 3Q, 1941,
3,223,609,000 kwh, The current week's output is 17.8% above
of 1940, when production to¬

power
was

the output of the corresponding week
taled

2,736,224,000 kwh. The output for the week ended Aug. 23,
estimated to be 3,193,404,000 kwh., an increase of 17.7%

1941,

was

the like week a year ago.

over

PERCENTAGE

INCREASE

New

England

Central

Southern

States

Coast

Total
x

./i

15.1

13.2

15.5

19.4

21.0

17.5

19.5

5.4

X9.0

X8.7

17.8

17.7

16.6

data under revision.

RECENT

WEEKS

May 10

whole

self-rising flour, en¬

1941

The

dealers
-

best

and

interest

investors

security

would be

1940

1941

1939

1938

2,493,690

+ 17.8

2,243,986

2,050,101

2,529,908

+ 13.9

2,234,908

2,016,227

2,528,868

+ 13.6

2,265,216

2,499,060

17.1

2,244,039

2,010,121
1,995,555

2,503,899
2,515,515

+ 16.4

2,224,723

+ 18.3

2,550,071

+ 17.0

2,238,826
2,234,592

2,588,821

+ 16.3

2,477,689

18.0

2,277,749
2,186,394

May 3,1
7

3,042,128

2,598,812

+17.1

2,328,756

2,056,509

3,066,047

2.664,853

+ 15.1

2,340,571

2,051,006

June 21

3,055,841

2,653,788

+ 15.2

2,362,436

2,082,232

June 28

3,120,780

2,659,825

+ 17.3

2,395,857

2,074,014
1.937,486
2,154,099

—

Apr.

May 17
May 24
June

—

June 14

July

——

July 12

-—

July 19

July 26
2
Aug.
9

AUff.

—

____

Aug. 30

____

2,866,865
3,141,158
3,162.586
3,183,925
3,226,141
3,196,009
3,200,818
3,193,404

3,223,609

2,425,229

+ 18.2

2,651,626

+ 18.5

2,145,033
2,402,893

2,681,071

+ 18.0

2,377,902

2,760,935
2,762,240

+ 15.3
+

2,743,284

+ 16.5

2,426,631
2,399,805
2,413,600

2,745,697

+ 16.6

2,714,193

+ 17.7

2,736,224

+ 17.8

that exchange would have a bet¬
ter market and wider interest if

16,8

2,453,556
2,434,101
2,442,021

customs and

in vogue, but what will their
when they are obliged very
substantially to curtail their normal business and devote
their time instead to 'the production of tanks, machine guns,
military cars, and all the rest under a variety of terms and
conditions never before experienced in American industry?

income

practices

statements

were

look like

1937

2,218,798
2,218,615
2.229,866
2,237,542
2,225,194

2,030,754

2,251,995

1,936,597

2,176,399
2,266,759

2,242,421

2,249,305

2,260,771
2,287,420
2,285,362

2,139,281
2,358,438

2,152,779
2,159,667
2,193,750
2,198,266

2,321,531

2,206,560
2,202,454

2,365,859

2,216,648

Separate Problem

The point

1,992,161
2,019,065
2,023,830

■

ly so long as they were able to make and sell to the general
public large quantities of goods for which they are, and have
for a long while, especially organized and equipped, and in

Each Case A

(Thousands of Kilowatt-Hours)

2,312,104

2,341,103
2.360,9*0

2,351,233
2,380,301

trend

indicating that the larger
Exchange broker is en¬
handled
over-the-counter.; The deavoring to acquire all the busi¬
Curb market does not represent ness and drive the small dealer
Stock

the discontinuance of
Exdiahge, it is believed
by D. A. . BalfoUr . of Russell,
entirety out; 'sihfce every
list*
irig
securRy kdhritted to iiplistHoppe, Stewart & Balfour,* Wjtlcox
Building* -Portland, Oregon, tends io contract rather than ex-, ed trading; -privileges; helps the
"
!
since many of the issues traded on pand dealer interest, the present large Exchange broker/ *
served

the Curh

are

16.5

2,937,585
2,882,319
2,873,710
2,926,445
2,914,882
2,975,024
2,982,715
3,011,754
2,924,4601

Apr.

Aug. 23

producers

danger of being caught between the upper millstone of
fixed prices for their products and the nether millstone qf
higher material and labor costs.
The
third
factor
concerns
priorities, / hoarding of
materials and other closely allied matters which endanger
the supply lines of many enterprises, and the fourth with
the as yet undetermined profitability of armament orders.
The motor manufacturers, for example, have not fared bad¬

: "

1940

Aug.

Would Abolish Curb

from

Fresh, pears,
plums, prunes, apples, oranges,
and
peaches,
fresh
vegetables
(including potatoes), corn meal,
shell eggs, raisins, dried prunes,
hominy (corn) grits, dry edible
beans,
wheat
flour,
enriched
self-rising
flour,
and
wheat (Graham) flour.

15.9

3.1

xlO.3

FOR

12
19
Apr. 26
May
3

riched

21.8

4.5

xlO.5

Change

Apr.

wheat flour,

24.2

8.5

should be higher;

DATA

Percent

complete
list of "blue stamp
foods," for the period Sept. 1
through Sept. 30 in all stamp pro¬

21.9

16.2

___

Week Ended

and are the same as those
available
during August.
The

is:

Aug. 9, '41

20.2

24.8

_—

.—______________

United States

Percentage

23.0

12.1

Rocky Mountain
Pacific

20.1

Week Ended

16.0

—

ber,

areas,

It thus arises that many

increases in both.

both the manufacture and sale of which established business

YEAR

19.3

—~

Industrial

Central ;

West

22.5

———

Atlantic

Middle

PROM

Week Ended Week Ended Week Ended
Aug. 30'41
Aug. 23'41 Aug. 16 '41

Major Geographic
Regions

stores

throughout the month of Septem¬

gram

;:V:

List for

group

war

■

;

large

cent above

f^nlr

maturity this time amounts to
only $204,000,000.... The cou:

(Continued from First Page)

(Continued from Page 29)

months

of corporations before taxes was some 82 per
1940, these corporations will have only 20 per
cent more when they have paid their Federal taxes—assum¬
them has primarily to do with corporate earnings, not mere¬ ing, of course, that reserves set up for this purpose prove
ly the prospect for profit in American industry in general, adequate, which in the present state of things cannot be
or even of large groups or departments of that industry, but
counted as a certainty.
•
.
the outlook facing each enterprise—so diverse are the ef¬
Wide Variations
fects of current developments upon each corporation likely
to be,
The other concerns the attitude and probable policy
But such g&neral figures tell only half the story.
Six

THE FINANCIAL SITUATION

Reporter On

Thursday, September 4, 1941

here is not so much the difficulties thus im¬
posed upon industry, >or the effect these are likely to have
upon the volume of corporate earnings taken all together
as it is the problem of determining the
consequences to this
or that particular corporation or group of
corporations, Cer¬
tain enterprises or groups of enterprises may be so fortunate
as to be in little
danger of severe priorities harassment, but
be large employers of wage earners who are quite definite¬
ly "on the make." Another may use substantial amounts of
materials on the "critical" list, but have large supplies oh
hand.
Still another may be engaged in making goods or
rendering services the prices of which are of secondary con¬
cern to
Mr, Henderson and his colleagues, but use
large
quantities of agricultural materials whose prices are high
and rising, and at the same time operate in a situation where
competition is more effective than Mr. Henderson or Con¬
gress in: preventing corresponding increases in what is asked
of the public for the goods in question.
One corporation may
employ chiefly unskilled labor which is in relatively abun,

mense

ramament

order^^sibly; from the British- v mav

^j^-^ri^AContinued'on>Page\Zl)''\-!h^>rr

Volume 154

r''<-

/&?
* »'£■■&>
\y- 4-. £
have obtained them oh terms which leave a clear

;;

Continued from

possibility

good profit (at least before Federal; taxes) while another
may have even larger orders but has not proved so good a
bargainer in obtaining them.
The terms and conditions un¬
der which American industry has undertaken its defense
task are infinite in their variety, and concerning many of
them little of consequence is generally known;
Evidently
;> all those who must evaluate securities, whether he be invest¬
or, broker, dealer, or banker cannot in these circumstances
permit himself to grow mentally sluggish or expect to have
an easy time of it.
•■•/•/•,''••;
a

•

j;1/ When

picture

we
least about

turn to the banking and credit corner of the
find a somewhat different, but for the moment at
equally uncertain prospect. It has for some time

evident that "inflation"

been

has been

word to

conjure

Fear of its arrival (as if in reality it
had not been with us for a long while past) has set the Chair¬
man of the Board of Governors of the Federal Reserve Sys¬

with in

Washington.

First Page)

Report New Record ;s

control

try.

©' '

•

indus-

and

business

over

(Continued from First Page)

■*/

$24,998,000,000

on June 30, 1941.
This represents a reduc¬
$1,292,000,000, or almost 5% since Dec. 31, 1940; '
Investments by the banks in United States Government obli- v
gations and obligations guaranteed by the United States
Government
increased
from
June
of
last
year
by $3,470,000, or almost 22% and amounted to $19,371,000,000;/

•

■

tion
'

Notwithstanding

Henry

that

•

Wallace is made chairman of the

SPAB,
it.

Henderson

Wallace

He
is

the

missionary

with

Knudsen.

business

:,4.

Nelson

amounted

$68,000,000,

$3,551,000,000 on June 30,- 1941, a gain of
2% during the year period.
Investments in

other securities,

Federal

executive

Invegtjqp^pts in obligations of States and political subdivisions

•

Stimson

Knox.

type.

give the New
in the event

Donald

man"

executive

majority

trouble

and

dominate

will

not

the board to

Dealers
of

Loans, Discounts and Deposits

is out to increase the Government's

FDIG Banks

If From Washington

,•,,l (Continued from Page 30)

FINANCIAL CHRONICLE

-Number 3976

exclusive of foreign securities and stock in
banks, continued to decline and amounted

Reserve

'/to $3,039,000,000, a reduction of about 2%; during the year
period;
■
.>.'■/;■•■ •'
•
f"v'
5. Holdings of other real estate acquired in settlement of debt
and not used as bank premises, were reduced during the year
period by 17%, or $63,000,000;
6. Total assets amounted to $72,984,000,000 on June 30, 1941, an

//./

director and much has been made

■

of the fact that he is to be

really

the board's top man.

He got the
job because he could uget alone
with
Henderson," as the New
Dealers
said
when
they
were
agitating
for
him
to
replace

increase since June 29, 1940 of $7,395,000,000, or 11%. Of the
assets held by insured commercial banks on June 30, 1941,

Knudsen
remain

Stettinius.

the

He
now

board

will

just

34%

■

cash, reserves, and funds due from banks, 36%
securities, and 27% were loans and discounts;
capital accounts, of the insured commercial banks in¬

were

again, and effort, of which he seems to be the lead¬ as long as he can "get along with
er, is again being made to obtain legislation which would Henderson."
Business men thinking of offer¬
empower the Reserve Board to perform further radical oper¬
ing their services in Washington
ations upon member bank reserve requirements.
Existing should
contemplate
the
exper¬
reserves of member banks, even when considered in relation
their
ience/which
predecessors
to their deposit liabilities, are still so large that the figures have had. The truth as to whe¬
have little meaning, but the subject cannot be lightly dis-; ther defense needs were under¬
missed for all that.
For one thing, bankers have become ac¬ estimated will likely never be
known.
It
would
be
worth
a
customed to large "excess" reserves* and are much inclined
pretty penny, to know on just
to grow resxive when they even threaten to approach mod- what the needs were based in¬
if
there
is
erate levels. ' In such times as these in particular careful asmuch
anyone
in
-bankers have no desire to place themselves in a position of Washington who knows just what
this Government is going to do,
dependence upon the Federal Reserve—certainly not while even including Mr. Roosevelt, he
the present New Deal management is in the saddle;;. For an- is
yet to make himself known.
) other thing, "excess" reserves vary' in amount in
Mr.;/Roosevelt, throughout the
agitation,- frequently indicated—
parts of the country, as does the need for them.
A
and impatiently—that production
"in this "excess" which left the banking system a
aw/]
was
satisfactory to him—oh not
tem agog

Total

the year pleriod, reflecting in¬
profits, and reserves, which
retirements of preferred capital.
Total

creased

by $167,000,000,

creases

surplus,

than

offset

over

undivided

-"capital accounts amounted to $6,773,000,000 on June 30, 1941,
/

equal to 9.3% of book value of assets, compared with 10.1%
on
June 29, 1940.
The following is the preliminary statement issued by the FDIC:

STATEMENT

ASSETS

JUNE

LIABILITIES

AND

30,

V/;'-

1941,

1940.

31,

DEC.

INSURED COMMERCIAL BANKS
AND JUNE 29, 1940

(In Thousands of Dollars)

;:V.f.///;■;;'///

•'/:/; ' ■■'.•■/ '

ASSETS

■

well

cern

protected*/could /very /easily

and disturbance irivNew York

be straining every effort.

•

•:

upon a

believe

that

can

continuation of the policy of coddling the farmer and
The President's courageous veto of the

/—It
if

of cotton and wheat

excellent

was

far

it went; f

defense

than

Dealers

Government will

ther

freely,

stock go

sometime,

actually let any substantial part of its
into the market. But as to any program of effective¬
ly controlling farm prices or of placing a restraining hand
upon labor, the situation needs not "clarification,"- but ac¬
tion, which it will not obtain.
It should not take a great

has

ment
;

length of time to determine whether the new priorities
ganization will buyable and 'willing to do, anything really
effective.
A clearer picture of the effect of priorities and
kindred restrictions; upon the great rank and fil^ of Amer¬

Total

s//

Arnold

income

his

big

for some time to come and, of course, corporation re¬
ports wilL not appear until still later, but the corporations
holding these contracts should be in a position before very
long to form a fairly accurate judgment of how well they are
likely to fare, and, of course, such information has a way
of "getting around."
As to banking and credit develop¬
ments, it is possible that the head of the Treasury will give
some inkling of what is in the wind when he announces his
t:;
intentions concerning fall offerings, but it may be that fur¬
ther developments in Congress will have to be awaited.
\

Big

; One
thing which to most observers seems rather defin¬
ite, barring the wholly unexpected. \ That is that despite all
itbo alarmist talk about, priorities unemployment -And".; the

goods generally,wfU, fully; Jnaich
production of 'them within the foreseeablee*''

li% demand .for,

consumer

real

estate,

17,014,372

42,560,744

136,861

real

bank

assets

premises

estate

the

But

ness.

have

been

the

with

122,184

multitude

Act,

for

labo?i leaders
the

are

IDealers

towards

and

•

Deposits

-220,504.
1,889,636

70,719,525

65,589,180;

DeiJ.

1941

34,330,943.
:

32.400,488

28,899,054-

15,207,488

15,002,076

14,779,568.

V "•

730,726

735,463

4,009,655

'3,820,595

money

689,562

65,616,648

and

10,675

;11,481

94,387

liabilities

Total

Liabilities

-—i-

Liabilities

Miscellaneous

Total

counts

98,056

96,114

".rW 489,296

467,432

447,332

595,358

576,969

557,290

66,211,006

64,046,139

58,982,681

2,858,363

2,872,040

2,892,233

.'• 2,603,327

2,563,263

2,483,865'

,—

Capital

(excluding

Ac¬
—

___—

Capital Accounts—
f
Capital stock/ notes, and debentures __
Surplus (paid in by stockholders or ac•/
. cumulated
from earnings)
______

up,

Undivided

Total

898,317
413,099

838,125

836,841

399,958

393,560'

6,673,386

6,60^,499

72,984,112

70,719,525

65,589,180

Accounts

Capital

6,773,106

profits

Total Liabilities and

•

set aside for contingencies, etc.

Amounts

58,425,391 '
13,844

bills

exchange
Other

706,739

63,469,170

—

9,609,331

708,993

—

acceptances

829,606
3,601,093;

10,801,555

10,648,274

—

___.——

Outstanding

are

Capital Accounts

,—

:v
: '/ • /
" v\. .: ..>■/
S. Treasurer's time deposits, open account. '

too

keep in

much trouble to

organized

labor's

Biggers

are

like¬

so.

He's

anti-trust

the

that

held

anxious to do their stuff but they

being held

in'check.

Arnold

Govern¬

has

lot of friends

in Congress, both

right ;with , the

wards- Labor,

the

fellows.

They

his

the
or

are

Dealers

New

later

run

has

graces

suit

been

ever

since
the

justvas
was

The

likely that
will

sooner

him out of town.

against

union

paign

campaign.
more

the

their

bad

filed

carpenters'
1949

beginning to

cam-,

warm

up.

The purpose of Justice Frank
Murphy's
secret
talk
to
the
Knights of Columbus convention
in Atlantic City was to reassure
,

are

Walshexample.
The

—

laws

organized labor.
got about 400 young lawyers
apply

ceed

chances

line.

shelf

those who

aii|/teeirfi. attitude

little

136,913

250,649 1

1,868,434

'72,984,112

—

banks

Borrowed

associates,

money.

Healy

123,168

218,580

1,794,073

and

Foreign

Total

help Little Busi¬ didn't
the cards against it

regulations

;• -

—__

____

•

/'/

>—

Assets

political subdivisions
Domestic
banks,
certified and officers'
checks,
cash
letters
of
credit and
travelers'
checks outstanding
:—

they
towards

his

ment

370,033

303,755

States

Little
difficulty is to comply

Business'

1,081,082

partnerships,
and corpor-ations, payable on demand
.___
Individuals,- partnerships,
and
corpor¬
ations deposited for periods of time __
U. S. Government and postal savings ©

stacked

.Individuals,

become

81,104

1,071,414
-339,563

.>1,067,130

Deposits—„

the theory
control,

defense

tried

indirectly

owned

Arnold, restless at being on the
to. which he has been put
particularly John D. Biggers have
by the course of events, is agitat¬
taken
a
lot
of
abuse
on
the
ing among his friends in Con¬
grounds that they permitted Big
gress for legislation' overturning
Business to gobble up the bulk
the Frankfurter
decision which
really

83,640

79,424

then

moving

and

:;.Af/;

—j.——

assets

Assets

39,835,661 '

customers

acquired in settlement
other

and

Total

the

out •or;;

businesses

easier

Miscellaneous

gotten

fervor

Since

been

Knudsen

New:

18,397,472

June 30,

him

Business

that

204,332

3,096,416

46,191,782

•

not used as banks premises

debt;

Other

Thurman

scarcely

pull

ones.

have

3,482,795

194,802

/140,295

Total

end.

beyond

and

little

make

degree of profitability of armament contracts, since
operations under many of them will not be under full head¬

3,038,851

over-

account of acceptances
owned
and
furniture

premises

other
^

off with
the explanation that they had
decided it was impossible
t<p

way

(including

securities

and

Investments

New Dealers began

Securities

and

•representing

headline stage, was

had

when the

statements

discounts

"crusade"

this

trust-busting

trying

the

-15,900,885

3,157,791
138,539

•.'■•:

_______

fixtures

Other

for

day

the
at

little

short-lived,

banks

Reserve

banks on

and

ra¬

been

have

But

got

newspaper

will probably slowly emerge as the autumn
The extent to which Congress is willing to J
place real power in the hands of Mr. Henderson or of the
President as to prices should be much clearer within a few
weeks.; Considerable time must elapse before the public
from actual

Loans

Banks

1938 when they

sion.

will be able to determine

and

///;>/ and

which

ican enterprises

16,204

3,608,270

3,551,281
/V/ 177,472

Federal

Guarantees

fling at endorsethe anti-trust laws

back

;

19,913,169

The

saying

are

that

They took

17i063,870)

—_____________

securities •:

..Loans

contracts

faring.

been

Business

Little
•

•

securities

'..Other

•

Stock

had
to do something to divert atorf;: tention from the 1937 reces-

months pass.

possessions

-Foreign

prior¬

from

now

New

few weeks whether

23,863,883

10,042

obligations and obligations
the U. S. Govt,.
Obligations /of
States/apolitical sub-divisions, /'' territorial
and1
insular
guaranteed by

•

fare

will

Business

not the V

doubtful

exceedingly

Little

should be clearer within

•■>

:'V-v.?.

ities

7,540,087

26,290,347

,___

__________

due from banks

Govt,

-U.

•

But he

now.

any/better

wholly unwarranted attempt to "freeze" government stock

banks

Securities

and

Loans

the wage earner..

8,204,279
11,750

24,998,257

19,370,714

banks

domestic

faster

count

foreign

1,573,048
13,750,656,

13,991,733

12,958,527
8,298,541;

—_—_—

observers

other

With

time.Most

With

banks

983,888

1,235,263
2,847,322

2,488,529

of collection

Federal Reserve

Total Cash and Funds

sonable

process

With

13,480

Banks

vault

-1

'**■

13,423

_____———i—i

from

Due

13,438

1,242,618

because it ne¬
We always must

be. ;

ver would

banks

Funds

and

•

cause^con^grd^Ie^conrr .quite;-satisfactory

in so

'•' Number

•.

Cash

darge a degree bankers" banks; and where Tn ..so
\gasi never alarmed as seemingly
large 'a^ddgptee
were
those responsible for the
to say of the world where any freedom or discretion remains. agitation. He should be in posi¬
tion .".."to* know the needs—needs
Moreovery there is no disguising, or avoiding the fact that
the Treasury must come into the market for huge amounts for j ust what, war abroad or
whatnot, more than anybody else.
of money in the year or two ahead, and, unfortunately, there
r,' v/..The experience of the i)olis no very great likelihood that it will be able to raise the
larra-Year men, now climax¬
i funds it needS' Without calling on the banks in one way or
ed
with their utter eclipse,
has
been
one
of
the
most
another.
'/;'V:.|: -/: ^
:•;
'/•'*••'
/
fantastic
spectacles seen
in
//Such in bold strokes is the nature of the situation by
| Washington in a long time.
* which the' financial>
cbmimuhitys'isif
Presumably,
the
guns
and
planes- will - figuratively roll
day period is over. It is by no means improbable that the
but only figuratively, much
state of affairs will considerably clarify itself within a rea¬
are

June 30, 1941 Dec.

ness
.

personal and

hold his views to¬
and

Big

..hut f it\ would,

Washington if he were

the Catholics

the Administra-.

tion's attitude toyvards Commun¬
ists. Many of them have thought

Busi- |
amaze;,,/ there was
to sue- / friendship.

I- decidedly; too much
' "
v '*'•
?

FINANCIAL CHRONICLE

Thursday, September 4, 1941

Weeks Lumber Output

IN THIS SECTION

Practically Unchanged

New issues of long-term State and
id the aggregate - principal amount'- 'of

municipal bonds were sold
$43,477,722 during August.
Lumber production during the
Sales in the previous month were $54,844,829' and in August, 1940,
veek ended Aug. 23,' 1941;* was
the total was $75,019,089.
'".K/'■/
e same as the previous week;
The feature operation last month was conducted by the City of
shipments were 4% greater; new
Tacoma* Wash., which awarded an issue of $4,000,000 iy2% and -3% business 2% less,
according to re¬
light and power revenue bonds to a syndicate headed by John Nuports to
the National Lumber
veen & Co. of Chicago.
Competition for the loan was exceptionally Manufacturers Association from
keen.
The successful bid figured a net interest cost of 1.7488%, while
regional
associationscovering

"v-'V

■

•(Continued from Page 17)

Lumber production and. shipments 'during Week
; :f- show little pchange from preceding week.
•

ended Aug. 23, 1941
^

:■;//

■

'//Page 32

the next best tender was based on a cost of
tered bids for the issue.

Eight groups en¬

1.76%.

the

•-v

ing

adjusted

debtedncJss

'■'*

•

York,

New

1.20s,

interest

cost

Re-offered

•

1.748%.

yield

Bonds

0.30%

from

optional beginning Jan. 1„
1.85%, according to. maturity,

1952.

are

from 1942
The lVaS
of 0.25% to 1.55%, according to maturity,

$1,446,000 public relief and permanent Improvement, maturing
to 1961 incl., sold at 1.70s, at 100.21, a basis of about 1.67%.

were. re-offered from p yield
and the 1.70s on a basis of

;

from

0.25%

1.80%.

2,540,000 Dade County Special Tax School Districts, Fla., school site'and building
bonds, bearing 4% interest, were taken by a- group headed by Blyth &

Loans and

.1941

the
pro¬

and

139%

daily

of June,

month

during

The Association's

President Roosevelt

re¬

Years,

How-y

Agrlculture-^-Hlgher Costs

Says Present Dangers to World May be
Sea

Conference

and

Club at Hyde

Press.

Pagre' 21 ■

y/v.;II 'M:/:

Comparisons

President Roosevelt Calls for Increased Defense Production to Crush
Hitier and Nazi Forces—In Labor i>ay Broadcasts Says Defense
of America's Freedom Must Take Precedence Over All Private

1 }■

/:■ <;■/ Aims.

:Pa8:c 25 f

16% above the orders of the

Conference

ls4u period.
For the 34 weeks of
1941 to cate, new business wat

Board

Study

1.1-

production, and sh pproduct.on.

President

■;;-' ■-1i- ■/l^% "^-1:;;

RoosCvelt Calls

Page 20 -:

%'k//^/;/:

•

Labor and

for Uninter-;
rupted Production of Defense Weapons—In Labor Day State-:
ment. Urges Renewal of Resolve for Sacrifice in Defense of
v/%./ Democracy
-■
/;//

Supply and Demand Comparisons

Reserve 56%:
Companies Set Aside 41%.V

Large/Corporations

Shows

of Income for Federal Taxes—Small

ments were 6% above

Management

•

of unfilled

The ratio

with Best Income Prospects in

Serious than When War Began—Addresses Home

Park, N. Y.—Refers

corresponding - weeks
o:
1940; shipments were 17% above
tc e
shipments and new orders

Page 17.

above

-i:: 17

Reported production for the 34
weeks of 1941 to date was 14%

PD1C—Deposits Also at>

-v-.:.:ivv;*.■

According to Department
ever- Cut'Into' Prices.' '

were

Commercial Btnks as of - June 30, <

Reported

Ever

Farmers Begin Fall Harvest

1935-39 shipments in the

Year-to-Date

Highest
.

corresponding

1935-39

Discounts of Insured-

were

Record Amount

orders

Co;., Inc.•, -New York.
An issue of $2,250,000, due 1942 to 1961 incl.,
gross stocks was 43% en Aug. 23,
'•'•//> ;■«
brought a price of 107.777, a basis of about 3.16%, and a clock *
V;-V; .$290,000, maturing 1942 to 1971 Incl., optional May 1, 1961, was sold at 1941, compared with 27 % a year
ago. Unfilled orders were
34%
V
107.853, a basis of about 3.16%.
The bonds were re-offered to yield i'rom
j 1% to 4%, according to date of maturity.
//■/ /'/■
greater than a year ago; -gross
l,866,000 New Hampshire (State "of) %% hospital, relief and other purpose bonds
Stocks were 15% less.
%
f
sold privately to'a group headed by White, Weld & Co., New York, a.*ui
re-offered to yield from 0.25% to 0.90%, according to maturltiy.
Bonds
due serially• from 1943 to 1949 incl. '//:>'/" ■'.
]
Sdftwoods and Hardwoods
>
1,165,000 Delaware (State of) public improvement bonds, due from 1942 ta 1964
^
incl., optional Aug. 15, 1950, were purchased, by a syndicebe headed h* i
Record for the current week
B. J. Van Ingen <fc Co., Inc., New York, as 1.10s, at 100.333, a basis of
enaed Aug. 23, 1941, for the pre¬
/'..
about 1.05%.
Re-offered from a yield of 0.15% to a price of 99.50,r
vious
week and for the corres¬
depending on date of maturity.
a--'
; •V

continues rise

reaching 3,834,200 barrels. ;
Page 28

ports further showed:

production

mills.

2,716,000 Minneapolis, Minn,, bonds purchased by Phelps, Fenn & Co., Inc., New
,
York, and associates, as iollows: $1,270,000 llh% refundlngs, due from
1042 -to
1951- incl.,
at a price. of 100.157,
a
basis of about 1.47%;

;

the

week.

same

softwood

average

of)

awarded

Oil

average

3% above proorders 13 % below

new

duction
week

Rural Credit Deficiency Fund certificates of ina syndicate headed by the National City Bank oi
a price of 100.283, a basis of about "1.10%.
Due
1
serially from 1945 to 1947 incl.
The certificates were not re-offered for
public investment as they were taken for bank investment.
4,000,000 Tacoma, Wash., light and power bonds sold to an account headed by
John Nuveen & Co., Chicago, on a bid of 100.002 for $1,425,000 3s, due
semi-annually from July 1, 1942 .to. July 1, 1950 incl., and $2,575,000
V/id, due semi-annually from July 1,. 1950 to July 1, 1901, making a n<u
(State

$4,050,000 Minnesota

Crude

duction was 16% greater, sh pir.ents 16% greater, and new busi¬
ness 24% less.
The industry stood
at 120 % of the average of pro¬

included .the following items .of $1,-

Financing during August
000,000 or more:

;

:
Page 19

representative

production. Compared with
corresponding week of 1940,

bonds."

milestone in the favorable record of bridge revenue

far first

were

d uction;

viewed ih investment circles "as constitut¬

was

and

Shipments

was

hardwood

Speaking of revenue bonds, it is of interest to note that the re¬
cent month witnessed the acceptance by the Washington Toll-Bridge
Authority of the Offer of the insurance companies to settle, the Ta¬
coma Narrows Bridge claim -for $4,000,000. plus salvage.
Use and
occupancy insurance in the amount of $249,000- was paid last April.
It is believed that the Authority will apply the proceeds of the: re¬
cent Settlement toward the redemption Of $3,750,000 of outstanding
revenue bonds.
The relative speed with which the complicated
claim

operations

Manufactured and natural gas Utility Companys'/ revenues
six months show gain of 3.2% over year ago. - - V'
^

•

■

•

■

Page 28'

Edison

Institute Reports That Current Weekly Production of Elec-tricity at 3,223,609,000* KWHS is 17.8% Above Year Ago.

Page

30;

Domestic and Imported Tungsten Placed/Under Full Priority* Cad¬
mium Still to

kPage 25 '

Following is

lows

August.^ Page Number of the Chronicle is given for reference pur¬
poses:

1023
1305

Report

$285,000

County, Texas_i—
1
2%% ':
Gallatin County S; D. No. 3, Mont.^__not-exc. 6%
Montgomery County,. Md. •r_-„;„___._v\.^not exc. 5% '
Nankin and Dearborn Twps. Frac. S; D.
Bexar

1161,

10.000-

120,000

1306

-13.000

—i.—-.—not exc. 5%

3,000

Towner,

Dak.

Mills

Production

Bids rejected
Bids rejected

O.aers

No bids

Bids

Mills

Orders

...

financing was undertaken during

in the last five years.

Perm,
*

loans

(U.

loans

Temp,

Can.

loans

as;

Placed

S.)

Canaaa

69,059,582
155,875,000

65.831,351

52,720 544

54,605,090

44,369,803

1,081,500

2,810,900

1,759.217

Bond3

75,01$9,Q.89

(perm't):

Placed

-4,510.011

•

171,591,571

-None

None

S._u—

None

"* 500.000

None

Poss'ns.

None

•

240.000
*

None'

30,000,000

None

450,000

None

Non:

Gen. fd.

bids.

(N.Y.C.)

Total

216,828,510

157,748,926

None

256,016,082

123,697.341

97.330.352

temporary securities issued by New York City, $55,000,000 in August.
1941; $45,000,000 in August, 1940; $35,000,000 in August, 1S39; $30,000,000 in August,
1938 and $30,500,000 in August, 1937.
'
'
.

♦Including

The

number

history,

For

the

••/.

8 Months

August .>

J941

$43,477,722
75,019,089

707,133,410

69,059,582
65.831,351

1938

1936-—^-

52,720.544
56,769.681

1935——

J, 65,703,316

1934-,-^.

27.708,331

1933^^,.

41,602,539

1937

„

1932.

$705,062,995

1940

1939——

-j
%

•

Month of
August

For the

8 Months

$37,839,967

1931
74,963,933 I
879,206,862 M930-——I—% 98,068,445
621.140.132
192g-iii^-_r-i 80.872,773 "
693,246,190 * 1928
68,918,129
■

713,522,262

1927_r_„
92,086,994
753,182,433
1926
71,168,428
642,092.065 ; 1925—_—83,727,297
298,422,720 , ■ ■
...
'.V,..V,
,t..

975,963,112
-7 836,370,593

928,136,644
1,060,936,272
909,425 840

980,196,064
.

of the "Chronicle.")

- •

„./r

(Details of the individual issues sold during last month' Will appear in
issue

$594,140,739
1,022.918,595

never

before

'a
1

future
.

t -

^/k1'/k:• k■:4;:;;k/:vkk'/Lk
f. ■;

Page 24

Debits for Week Ended Aug. 27,

J,-;//:/. v;;V/-;%//.;/ /./;.

^Federal

Reserve System
a

/vr%%'X'•-■■■■ Page 20,.

44% Above

Year Ago.

Page 181

/ /'//- /% - ?-'%/-/'; .v---'

Daily

Average Crude QU Output Sets New All Time High Mark—
4,004,700 Barrels—For Third Consecutive Week.
;/■.;,:■'•//%.

''/:%,:/'/)V' ■/./::v/%:.-:

the.r

^.f/

Pa£e 26

/>;■..v

Tax Bill Completed By Senate Finance Committee
Reported to Sen¬
ate—Yield Estimated By Committees at
$4,500,000,000 and Bv
TVodCiivi)
of
C9
4AA AAA
<f,
Treasury at $3,672,400,000.

Mortgage Bankers
of America
pointed
Aug. 30. Banks and trust
companies made about a fifth of

Association

lout

the

nearly $2,250,000,000 /of

ban

mortgages

first half
ciation

it1 is

recorded

of this

data

stated,

year,

indicated.

insured

Page 26

the

V%^-'jPage:18t
OPM Board Reorganized.
'//.//; Orders.

commercial

representing

Commercial

tr.e

enlarged their
gage portfolio by around 11%, or
by
nearly
$186,000,000.
This
compared with a gain of only
71/2% the year before, illustrat¬
ing, said Dean R. Hill, Associa¬
tion
President, the greater at¬
tention banks are giving mort¬
gages as investments
and reve¬

Small Plants to Receive

Additional Steel

.?/:/:'''/:://^;// /:,l'!'%V'-://

94%

of all
nation,
residential mort¬

banks

Prices Remain Steady

Worid

ur¬

the Asso¬
-,'
In 1940,

Banks

Investments

ers

Giving
and

Greater

Revenue

$450,000,000
/"v■■

Page 24

Mortgage

Loans

Producers, Says Mortgage
^-- :%/:'a,/' ^

Bank¬

Savings, Building and Loan

Attention

Association /:;/%. ;;>:/,■ ^;./.:

A.;-:

' Page 32

'
' "
Associations

Paid Back

Members

First Half of 1941

■

^'/-, ':/v■ /./;.';^%.i%'I.I.:v'^v'./':/^ v -:/%/ A-//;;: -/;■l/:;'

Pase 32

August Municipal Bond Sales

^^'V'
capital originally saved up or in¬
vested in lump sums in the thrift
and home financing institutions,
$40,000,000 of it represented cash
dividends paid on share accounts

$450,060,000

and

for Their Past Thrift

Page 32

A $450,000,000 reward for their
in past years materialized

for

savin gs, I building

and

Joan

ginally saved it,

had been in a
continual turnover to home
own¬
ers
to help them

buy, build

modernize,
association

$ 10,009,000 represented loans

obtained

witn

security.
thrift

"./•/:':,l-;

The

outflow

share
/.-

accounts

ana

out

owner

again

back

into

the

montnly payments
into

other

home

hands, while it stayed in

during the period

in proportion to to¬
tal shareholders
interest in the

was

then
in

the institution.

./'/.:/.a

normal

DIVIDEND NOTICE

association members the first six:

savings and loan associations of
JERSEY CENTRAL
POWER A
LIGHT
TA
1941, as this amount this country, Mr. Endicott point¬
1-REhEjitiED STOCK DIVIDENDS
°*
flowed back into their hands from ed out, and it was 40 % less than f lT^® ^oard °i Direccois. has declared the
following
regular
quarterly
dividends :
* the
Qtry.
div. of $A»75 on the 7f,h PrpfAppa4
the associations, the United States the half year inflow- of new funds.
Stock;
the
57th, qtiy*
div
of
fu
Savings and Loan League, Chi¬ It is added that the. $400,000,000,
6J, ti7«Trred
and 'the ^lst qtly (Uv®
investors found
cago, said .on Aug. 30.% Paul En- fori / which, the
dieott, President of the League, either an emergency use or the Of record- at
months

said that

$400,000,900

■a "

■

of Tt

was

i
-i

"?■

Page 18;'

the

places in the United

Month of.
,

SEC

Complete Returns of hlember Banks of the
%
for Week Ended August 27.

Bank

bonds and the number of separate issues made

Bidding Rule Regarded ByJ
Fostering Free Enterprise-

nue-producers.

States selling permanent
during August, 1941,
were 250 and 281, respectively.
This contrasts with 339 and 392 for
July, 1941 and with 275 and 343 for August, 1940. ; For comparative purposes we add the following table 'showing
the aggregates for August and the eight months for a series of years.
In these figures temporary loans, New York City's "general fund"
bonds and also issues by Canadian municipalities are excluded:
■

463

banks are buying
investing in mortgage loans

almost

commercial

1937

77,719,826

43,477,722

S.)-_,

(U.

,1338

•

296,112
29?,373
265,422

Commercial
and

banks,
1939

./.,/

450

255,518
263,184
341,432

Commercial Banks

1940

Healy

Competitive

Buy More Mortgages

August.'
A comparison is given in the table below of all the various forms

1941

Pare.28
'

Agriculture Department Again Increases Sugar Marketing QuotasCurrent Rise Amounts to 996,140 Tons.
-'•;/"

of securities placed in August

450

.pmcnis

.•■/

«•-'

r:;'

Prev.
Week

296,358
304,040
258,853

....

Production

plan satisfactory to the province and to the bondholders."
Approx¬
imately $147,000,000 bonds: are outstanding,, including maturities in
Possession

1940

Week

•

:■

Comments at St. Paul.-:

(Rev.)

Project abandoned

development during the month was announcement of the creation
of a- joint committee, representing bondholders and the Alberta
government, to consider "ways and means of evolving a refunding

States

118

/.v

Influence

Commissioner

11,702
ll.lOZ

1941

$666,000" 3s, was underwritten by Wood, Gundy & Co., the Dominior.
Securities Corp, and A. E. Ames & Co., all of Toronto.
An important

United

100%

108
lUd
and Hardwo-ds

Week

I-

rejected

only $1,759,217, of which $1,416,000 was accounted for by the Pro¬
vince of Manitoba.
This offering,
comprising $750,000 3V2s and

10,9.9
12,851

v 1

boitwoods

bills.
Principally as a result of these operations, the grand total of
financing-for "the month reached $171,591,571.
Other relatively large
sales, -were made by -the States of California and Massachusetts. /
Sales of Canadian municipal bond issues in August amounted to

•

...

I::vv

Liberating

■

100%

10^
l»vul
2»7,j91* ' O I
87

Offering canceled

; Short-term borrowing by States and municipalities during Aug¬
ust included the sale by the State of New York of $100,000,000 0.20%
notes and the issuance by New York-City-of $55,000,000 revenue

■■

Ago and $104,000,000 Higher Than. Last Month*

;■/:/ / /
Week

285,419
291,195

Shipments

;

default.

Hardwoods
:

1041

37,500

No. 2, ;Mich.
X
Nyssa, Ore.:_u_u-%_not exc. 4%

873

Amount

Int. Rate

Name

Page
1028

Softwoods
Week
376

lsrtl'

•%"•'//

Cash Farm Income in July Totaled $9^2,000,000, Repbrfs Bureau of
Agricultural- Economics—Amount Is $194,000,000 Above Year

a year ago> fol¬
thousand board feet

ponding week of

report of the issues unsuccessfully offered during

be Had for 90c.

purpose

for which they had ori¬

r'"

the^lose^of business sfifr iO.™
BQLLINOER,
Treasurer,

Full text of Commercial and Financial Chronicle : September 4, 1941, Vol. 154, No. 3976, Section 2

FRASER