Full text of Commercial and Financial Chronicle : September 4, 1947, Vol. 166, No. 4626

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MWODkCAC ROOM
!

SEP 5

194/

OBiiiwt Ubrary

UMV.OFMICH.

ESTABLISHED 1S39

■■

____

Commercial
inancial
Reg. U. S. Pat. Office

New

Number 4626

166

olume

to Achieve

ean

Peace: Ti uman

By WILHELM ROPKE, Ph.D.

bankers' and

Professor at the Graduate Institute of International

agricultural outlook. Says farmers are generally
of debt and have a backlog of cash resources, though produc¬
costs have risen. Looks for continuation of high agricultural

out

tion

Willremain strong to opagpessioti and aid world re-

Western Hemi¬
peace

ment.

•

role and prom¬
ises

•

economic

co¬

operation.

the;

to
American -Le¬

message

g o n e

vaults

President
President

Truman

too

are

in an

man,

ference

and the mod¬

Sept. 2, outlined the position and
responsibilities of the United
States in the move to maintain
and combat aggres¬
sion. Pointing out that a number
of nations "are still subjected to

world

peace

of foreign domination
which we fought to overcome," he
stressed the objective of keeping
the nation strong to be in a posi¬
type

aggression and
enforce peace, and he urged the
members of the Cohference to be

tion

oppose

Contribute to lasting

prepared to

■

&•

■

to the

31)

page

ex¬

was

withering corn in his fields, who
walked into the backroom of the
Trust

First

Union

Savings

Bank in Sigourney, Iowa.

plenty tough on, us,"
he said, mopping his face.
"But,
brother, I do pity the city folks
when they buy meat six, eight
"This

Baylor,
the
nodded agreement.

almost three decades at the bank's
helm

has

times

come

and go.

and

good

Sitting for

his

almost

sound

•'

the

mainly by the
war,

Prevention

Futile "Cures"

/'Eat what you please—and take our specially prepared
bicarbonate of soda with a highfalutin name."
It may be
that in days gone by some of the fly-by-night makers of
patent medicines came rather near giving such advice to the
public in an endeavor to sell their wares. Were they to do
so today, however, they would, one hopes, be laughed out of
business—or even, perhaps, be brought before the bar of
justice for violation of laws for the protection of gullible
elements in the general public.
So far have we traveled in
knowledge and understanding of the principles of physical
well being and health.
It is unfortunate, indeed, that our education has not

progressed correspondingly in matters economic. If we had,
so
many of us would not be suggesting and government
would not be so often arranging and giving effect to pro¬

which are based upon this very principle of first in¬

grams

sort

another.

these are brought forcibly to mind
at the moment by the current appeals to veterans to
refrain from redeeming their so-called "terminal leave"
Such thoughts as

(Continued

ties

been

has

caused

which

•

filled

has

somehow.

They speak of
"soft"

curren¬

cies in Europe
as

they

Wilhelm

Ropke

Act

were

God.

believe

They

they

are

clever when they refer to
the "scarcity of dollars" as some¬
very

thing which would be almost on
the same line with the "scarcity of
rain" in the Sahara.
.

fail to realize that

Such people

economic life is a

which

process

orderly, balanced and
continuous,
and thus guarantee
the
maximum
production
of
wanted commodities —- or which
might be exactly the opposite. It
is, of course, true that Europe has
been enormously impoverished by

might

(Continued on page 24)
r

25)

page

deficit

commodi¬

■•s

everybody in the county)

not

may

bad

seen

with Mr. Baylor (Chas.
checks but Charley to

morning

V,'

jecting harmful elements into the business system and then
expecting to "cure" or prevent inevitable economic illnesses
bank's
by dosing the public with quack economic nostrums of one

months from now."

State and

most

(Continued on page 25)

Havana

Municipal

AMERICAN MADE

Lithographing Co.

STATE

AND

MARK! I is

MUNICIPAL

R. H. Johnson & Co.
v

—

feeling

general

pressed by a big farmer, his face
scorched
browner
than
the

Charley

Inter'-Americap Conference for the
on

The

scar¬

city than with
a surplus.

Kramer

Dale

president,

Mr. President, delegates

(Continued

with

follows:

The text of the address
,

feels safer

mankind.

for the benefit of

peace

farmer

ern

Brazil, on

Petropolis,

debt

is off

pressure

closing session of
the Inter-American Defense Con¬

deposit

Ancient

at the

address

well tToaded.

Harry S. Tru-

the

notion that,

and

safety

stand.

ament

ac¬

counts

arm

em¬

bodying

We See II

years.

mechanical
terms

by-

Bank

gion, President
reasserts

„

EDITORIAL

conster¬

nation

and

static

Streets, * but
nothing 1 i k e

—

Main<&

-and

GENEVA, SWITZERLAND—Far too many people seem to have
quite a wrong idea of the present destitution of Europe.
They are
^thinking in
,

SIGOURNEY, IOWA.—The shriveling of Midwestern crops in the
worst drought of more than a decade has caused alarm on the farms

u r e

"soft,"'not

by "Act of God" but because of maladjustments created by
unsound economic policies.
Declares repressed inflation as fur¬
thered by Socialist controls is stifling all-important production
throughout Europe.
k

sphere

Studies, Geneva

Political economist holds that European currencies are

prices and triple A program but sees farmers and Main Streeters
alike watching political maneuvering for 1948 without much excite¬

Cites

Tells of effects of drought and

farmers' views

peace.

from Sigourney, Iowa, regarding conditions in

the Middle West.

address

pOse

By DALE KRAMER

Mr. Kramer reports

Rio, the President as¬
serts U. S. is prepared to stand by
United
Nations
and strive for

Copy

Repressed Inflation—Economic
Cancer of Europe

Report from Main Street
,

Price 30 Cents

York, N. Y., Thursday, September 4, 1947

Established

CANADIAN

■

;

Bonds

; i h

^SECURITIES/

BONDS

1927

*■
INVESTMENT SECURITIES

Bond Department

Hirsch & Co.
Members New York Stock Exchange
and other Exchanges

25 Broad St., New
HAnover 2-0600

Chicago

York 4, N. Y.

Teletype NY 1-210

London

Cleveland

Geneva

64 Wall Street,

Albany

Buffalo
Dallas

Baltimore

Wilkes-Barre

Scranton

Pittsburgh
Williamsport

OF NEW YORK

Syracuse
Harrisburg

Springfield Woonsocket

Bond Dept. Teletype:

WagensellerSDurstJnc
Investment Securities

Distributors of

SPRING

ST.

ANGELES

Corporate

Municipal

HAnover 2-0980

New York

1-395

Montreal

NATIONAL BANK
OF

THE CITY OF

NEW YORK

Toronto

PASADENA

*Georgia Hardwood

Securities

•Prospectus on

BER LOS ANGELES STOCK

EXCHANGE

TELETYPE:LA 68

(Incorporated)
Established 1899

REDIANDS

•

CLEVELAND
New

York

Cincinnati

Denver
Toledo Buffalo

Chicago

Columbus

Bond Brokerage
Service

Portland General

Electric Company
Common Stock

for Banks, Brokers

Lumber Co.

„

and Dealers

When

Distributed

„

Common

OTIS & CO.

Co. Com.

Common

TRinity 5761

•

WILLIAM ST., N.

Freight Corp.

Emery Air

Underwriters and
and

EMONT

NY 1-708

Inc. Com. & "A"

Air Products,

Detroit Harvester

IOS

Security Dealers Assn.

Bell Teletype NY

SINCE 1927

THE CHASE

Members

New York

(Representative)

SERVING SOUTHERN CALIFORNIA

626

SMITH & CO.

THE NATIONAL CITY BANK HART

PHILADELPHIA

BOSTON
Troy

New York 5

request

Reynolds & Co.
Members New
120

York Stock

Exchange

York 5, N. Y.
REctor 2-8600

Broadway, New
Telephone:

Bell Teletype:

NY 1-635

Hardy & Co.
Stock Exchange
York Curb Exchange

Members New York
Members New

30 Broad St.
Tel. DIgby

4-7800

New York 4
Tele. NY 1-733

haupt&co.

ira

York Stock Exchange
Principal Exchanges

Members New

and other

Broadway, N.

111
REctor

2-3100

Boston

Y. 6

Teletype NY 1-2708

Telephone:

EnterprUe 1820

Mailory & Co.

Metal

Thermit*

FINANCIAL

CHRONICLE

Thursday, September 4, 1947

Alabama &

and the Marshall Plan

Food Pfd.

Maxson

Future of the Bank foi International Settlements

Co.

Campbell

COMMERCIAL

THE

(906)

ERNEST

WEINWURM

Louisiana Securities

*Memo

Writer holds attacks by officials of the U. S. Treasury against the wartime activities of the B. I. S.
are found to have been unwarranted.
Says the Bank is in a sound financial position and may have

request

BOUGHT—SOLD—QU OTED

B ought—S

important part in bringing about closer economic cooperation in Europe. Maintains the B. I. S.
should be given a place in the Bretton Woods institutional set-up and it may also be useful in
directing
American private banking funds toward assisting European reintegration into international trade and
an

New York Hanseatic

Corporation

Steiner, Rouse & Co.

carrying out proposed Marshall Plan.

120 Broadway, New York 5
BArclay

Members

The Bretton Woods Conference in Resolution No. V of its "Final Act" recommended

1-583

Teletype NY

7-5660

liquidation of the Bank for International Settlements at the earliest possible moment."1;

This

was

Savoy Plaza

to be

the

fendant

3/6s, 1956

death sentence.

Department and the Treasury had
been divided over,

present its
side
of
the

Savoy Plaza

plaintiffs

be abolished.

Vapor Car Heating
Common

raises

interesting

would adopt the

the

Members New York Curb Exchange

of these

31 Nassau Street, New York 5

plain¬

The

Teletype NY 1-1648

special

correspondent
the "Com¬

mercial

and

Financial

Public Service of Indiana
Conv.

23/4s, 1962

Woods

reported

that

1 "Commercial and

July

27,

Prospectus

Request

July 20, 1944.
3 Parliamentary
Commons, Oct. 13,
4

B.I.S.
1947.

21,

McDonnell
York
York

New
'

Stock
Curb

■'<

fact, little atten¬

and

discussed

these

opposition
founded

the

B.I.S.

when

ex¬

June

Continent, rather than

• ■

The

Exchange
Exchange

The Dangers of Our
U.

Senator Malone attacks Truman
in

Treasury Depart¬
V '

...

Members Baltimore Stock

"Chronicle"

same

who

covered

corre¬

Eng. Electric System
Gen'l Aniline & Film "A"
•

•

com.

Northern

United

New

Piece

United

Trust

3H-4?

England

Dye

Artists

\ (Continued

siphoning off

resources

the

are

Wks.

Theatre

can

Common

our

own

feet

and

Detroit Int'l

ence,

two

,Two

today,

with

then only by a drastic reorganiza¬
tion of their way of life.
The 18 million veterans of the

have

in world

affairs.

decision

our

Bridge

World

Wars

face

tremen-:

tions

Established 1923
'

Members New
WALL

time

treaties

ten

They

years.

will

witness

complete

same

ing it lip service

dous responsibility over the next

making

trade

World War

world

Moxie Common
Hood Chemical
Foundation Co.

Haytian Corp.
Int'l Detrola
Lea Fabrics

Time, Inc.
Argo Oil

&TeeneroA(iomp<mi}
Members N. Y. Security Dealers Assn.

—not
not

based

—

not

ate future could

Russia

economic

fifty-five.
They
are
and

;

the

United
States.
1

When

United

vitally affect

Geo. W.

The veterans of the

Wars
Malone

the

Nations

major

nations,

cluded

three

France

and

survive

through

recognized

that

number

countries,

in¬

England,

China, that
our

five

can

only

support—and

are

brackets

and

wheel

ance

before

the

Senator

Disabled

Curb and Unlisted

will

World

active

form

during

the

this

the

by-passed
everybody giv¬

MICHAEL HEANEY, Mgr.

WALTER

KANE, Asst.

individual

trade

the

world.

independent

Joseph McManus & Co.

the main, that Russia
fur¬
nish her with
the necessary raw
materials and that she
process

Members

New

York

Chicago

"isms"

and

government

"trick"

Broadway

Digby 4-3122

currently

infesting

the rest of the world.
■

United
The

United

New York 6
Teletype NY 1-1610

and manufacture
goods and return them to
Russia.
This will include
jet planes and
other war materials.

War

Most of

tion

time by most of the

being

(

■

Nations

Veterans Annual Convention, Las

wars,

and

our

and

Peace

people naturally

as¬

■

by-passed

will

stronger

this'
na-

between,

casual

reveal

been

organiza¬

has

peace

prevailed in this nation.
Even

Nations

Vegas, Nevada, Aug. 19, 1947.

Exchange

these materials

bal¬

forms

Curb

Stock

period.
This coun¬ sume that all of the world is at
try, in the hands of the veterans,' peace most of the
time, since this
can be made safe from
the vari¬ country'has only had its
periodic
ous

Mgr.

and at the same

treaty with Russia provid¬

yage

trying

Securities

was

throughout

construction

Malone

American

two

the

^Address

our

standard of living and the whole
future of this nation.

Trading Markets in

the

upon

economic trends — and
the decisions made in the immedi¬

and

Hanover 2-4850
1-1126 & 1127

affairs

natural

three—

five

Exchange

NEW YORK .5
HAnover 2-9470

es¬

ing,; in

Newmarket Mfg.

Curb

Teletype NY 1-1140

living,

manner

England has made

reorganization and realignment in

York

ST.

national economy

standard

in 'the

emerged from

Warner & Swasey

City Units

Frank C. Masterson & Co.

foreign nations

League of Nations
in the early
20's;

five to

major

Tudor

since the Declaration

decent

Punta Alegre Sugar

Bell Teletypes—NY

(Va.)

•

<S^-

influ¬

some

geared to

powers

N. Y. 5

Stock

•

only nation in the world,

stand

Aetna Standard Eng.

Central States Elec.

26)

page

•

wealth and

our

The United States of America is faced with the
gravest
We

Boston & Maine R.R.

37 Wall St.,

2-4230

Teletype NY 1-1227

Senator from Nevada

"Doctrine"

Independence.

Dumont Laboratories

„

Bell

Foreign Policy

definite foreign policy "by Americans for Americans" that

that

rts.

Guaranty

Boston Terminal
:

tablishing

Hooker Electro Chemical
«.

WOrth

arid " elsewhere
stigmatized
the
B.I.S, and its American war-time

misplaced effort to stem communism.

Stubs

New

Title

Exchange
Broadway, N. Y. 5

120

Bretton

Advocates

Holding

Sweets Steel

"irra¬

Criticizes State Department for
permitting exports of oil and
materials to Russia and holds American
capital and skill invested abroad would do more than gov¬
ernment loans in rebuilding national and international
integrity of nations of the world.

Taylor Wharton Iron & Steel
U. S. Finishing com. & pfd.
&

Huron

were

war

drtual Tdafket J Qn

Bd.

and

Harry
D. White,
then
Assistant Secretary of the Treas¬
ury, in public press conferences

fhe

By GEORGE YV. MALONE*

120 BROADWAY, NEW YORK 5
Tel. REctor 2-7815

Electric

Scranton Lace

May, McEwen & Kaiser Co.

rations,

facts.2

Henry Hudson Hotel%

Woods in 1944 wrote recently that
"during the Bretton Woods prepa¬

was

dominated

the U. S.
-

spondent

Germany

branch offices

our

;

there

But who

—

suspicion regarding its
possible future policies, at a time

House

prejudice

with

prejudice"?
According tc
above-mentioned report thej

sat in

Parlia¬
An

gentlemen

ment."

fall of 1942 clearly shows that the

Financial Chronicle"

Debates,

Direct wires to

deep

NY 1-1557

La.-Birmlngham, Ala.

tional
the

State, tended debate
in Commons in the

Financial Chronicle"

been

irrational

Exchange

Reiter Foster Oil

Members

New

the

1942.
I.B.R.D. Cooperation,

and

matter of

ment at various occasions.

1944.

2 "Commercial and

Bought—-Sold—-Quoted

Bretton

have

against the B.I.S.4

vation

Chronicle"

Stock

pever

Institutions

apparently

Great Britain, however, its poli¬
cies were kept under close obser¬

Ernest H. Weinwurro

Woods

seems

Norwegian view¬

tion was given to ■ the war-time
activities of the B.I.S. as far as the
United States was concerned.
In

tiff -judges.

Telephone COrtlandt 7-4070

ton

point.2

identities

New Orleans,

opportunity

some time ago that
"among some
of those who
sponsored the Bret-,

defended the B.I.S. But it
appeared
that
the
Conference

question about

Vanderhoef & Robinson

Norway had opened
some
time before,

question

York

St., New York 4, N. Y.

HAnover 2-0700

Yet there was quite a different
attitude in the United States. The
London
"Economist"
observed

(B.I.S.) should

edly

This

but the Dutch and British repeat¬

well.

the

Bell System

the

judges

the question

tional Settlements

had

set themselves
up

or an

The ; British
Government
failed to defend the B.I.S..

to whether the Bank for, Interna¬

The

case.

Class "A"

It had been decided upon without trial

de-

New

25 Broad

Vthe

for

old—Q uoted

historic

that

there

period

over

review
has

never

the

five

thousand years of recorded
history

when

all

the

(Continued

world

page

was

Members
New York

(

Security Dealers Ass'n

29)

Railroad
Public Utility

We Maintain Active Markets in
U. S. FUNDS
for

Canadian

Industrials

Canadian Banks

Industrial
STOCKS & BONDS

Canadian Mines
Canadian Utilities
Canadian

Securities
Department

PUBLIC SERVICE
COMPANY

United Kingdom 4
%

Rhodesian

*90

Selection

Raytheon Manufacturing Co.
$2.40 Conv. Preferred

OF INDIANA

Solar Aircraft

Common

Gaumont-British

INDIANA GAS

Scophony, Ltd.

WATER

*Twin Coach

COMPANY
Common

British

Securities
Department

Bought4-

Sold

—

Teletype NY 1-609

Goodbody &. Co.
Members

Stock

115 BROADWAY
Telephone BArclay 7-0100

J-G-White

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

*Universal Winding Company
90c

Quoted

Teletype NY

1 -672

*Prospectus

request

Reynolds & Co.

NEW YORK 5

ESTABLISHED 1890
Tel. HAnover 2-9300

Conv. Preferred & Common

6 Company

INCORPORATED'
37 WALL STREET

Company.

$1.25 Conv. Preferred
..

G.A.Saxton& Co., Inc.
170 PINE ST., N. Y. 5 WHitehall 4-4070

90c Conv. Preferred

Company

Members New
120

York

Stock

Exchange

Broadway, New York 5, N. y.
Telephone:- REctor 2-8600

Tele. NY 1-1815

Bell

Teletype:

NY 1-635

COMMERCIAL

THE

Number 4626

166

Volume

INDEX
Page

New York Curb Exchange

Inflation—Economic Cancer of Europe

Repressed

Ropke

—Wilheim

An Ineffective

and News

Articles

Securities Acts"

Street—Dale Kramer
Cover
of the Bank for International Settlements and the

;

dent of AFL

•

Hording Jordan-,
World Not at War But Without Peace
\ \ \"

The

Sleeping Brass—Philip

Clague

•

Tells American Legion Convention That
Peacetime Training Is Essential—
1

Truman

Ineffective Apologist

Barclays Bank Sees Permanent

Development-...

Promulgates Plan for State's Business
'

Level

Prewar

Herself

Correspondent Says Switzerland Has Financed

That

Acts

Dewey's Stand on Compulsory >

Correspondent Says Easy Money Rates Are Not

Bank

and

Stocks—_—12
40
18

Insurance

Bookshelf

Business. Maa's

Canadian Securities

Securities

Salesman's 'Corner—L-'-'

Securities

Now

Real

"Bluff

the

Standard"

Ahead of the-

Washington

News—Carlisle

Bargeron—

38
16
22

Activity—

Business

Indications

Funds

Mutual

Banks and Bankers—.

About

Published

Twice

Other

articles

Reg.

WILLIAM

S. Patent

DANA COMPANY,

25 Park

Place,

New York 8,

2-9570

REctor

OERBERT

D. SEIBERT,

WILLIAM

Office

DANA

WILLIAM D.

Bank
$25.00

Publishers

9576

Editor & Publisher

SEIBERT, President

RIGGS,

corporation news,

Other

city news, etc.),

Offices:

Chicago 3;

I1L

135

(Telephone:

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

-Coypright
Reentered
ary

Salle

the

under

find

Bankers" the aim
unvarnished display of

post

the

•

ISubscriptions In United States, U. S.
Possessions, Territories and Members of
pan-Americaa Union, $35.00 per year; in

Co.

Lawyers Mortgage Co.

Dana

office at New
Act of March

Subscription Rates

QUOTED

—

FIRST COLONY
CORPORATION
New York 5, N.

52 Wall St.

Tele. NY 1-2425

Tel. HA 2-8080

the National Associa-

view" that are
within the

purview of our American way
not a restriction upon

points of
and come

of life; "new points
our system of free

enterprise.

;
However, the
'

1856

H. Hentz & Co.
Members

Stock

Exchange

Curb

Exchange

Cotton

New

Exohange

York

New

York

New:

Inc.

Exchange,

Commodity
Chicago

Trade

Board

New Orleans Cotton Exchange
And, other

with progressive "new
helpful to the securities industry

of view" that are

Established

fault

Exchanges

N. Y. Cotton Exchange

Bldg.

NEW
CHICAGO
*

YORK 4, N. Y.
DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

regimentation of those in the securities
(Continued on page 37)

York funds.

Lawyers Title & Guar.

SOLD

—

OFFERING WANTED

in offerings of

Central States

High Grade Public Utility and Industrial
!
PREFERRED STOCKS

Elec. Corp.
5s, 1948

Central States
Elec.

Co.

Corp.

S'/as, 1954

5. 1879.
•

•

Publications

Earnings

Y. Title & Mtge.

Co.

Prudence Co.

second-class matter Febru¬

CERTIFICATES

St.,

BOUGHT

Amendment in particular

' ••!'

of view."
We

by William B,
Company

25, 1942,
York, N. Y.,

been to arrive at

We are interested

State 0613);
E. C., Eng¬

1947

year.

Record—Monthly,
(Foreign postage extra.)

Bond & Mtge. Guar.

opinion,

TITLE COMPANY

bank clearings,

Missouri State

Life Insurance

its regimen
practices in
I limiting to members only the sharing of commissions in trad! ing and underwriting, its previously despicable practices in
1 connection with disciplinary proceedings—such glaring
omissions, it seems to us, were intentional.
\
Said Mr. Truslow, "Any glance back over the last 50
years of the securities business will reveal that business has
exhibited a remarkable capacity to accept change and to
adjust its procedure to increased demand and to new points

„

year.

New

York 4, N. Y.

WHitehall 3-0272—Teletype NY 1-956

lacking and servile.

Business Manager

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
and

per

made in

«tate

per

Record — Monthly,
(Foreign postage extra.)
Note—On account of the fluctutations in
the rate of exchange, remittances for for¬
eign subscriptions and advertisements must

Thursday, Sept. 4, 1947

Records,

$38,00

Quotation

year.

Monthly

$25.00

N. Y.

and
per

$42.00 per year.

Other

FINANCIAL CHRONICLE

40
page

Canada,

Countries,

and

COMMERCIAL

The

and You

Washington
"""See

•-

Markets

(Walter Whyte Says)

Members New York Security Dealers Assn.

25 Broad St., New

tion of Securities Dealers, its pricing activities,
itation of securities salesmen,, its monopolistic

Trade and Industry..

The State of

Dominion

Weekly

20
Registration—34

DUNNE &CO.

Securities

Estate

Tomorrow's

Notes

NSTA

' 8
14

Binzig—Suspension

News

Utility Securities————
Securities
—,,—-—

Investment

Recommendations

Prom

19
37
37

Reporter on

Sugar

Susquehanna Mills

over-the-counter
Suggesting the obvious remedy that
should be removed, he implies that they

An omission of all reference to

Governments—
Our Reporter's Report_i;_^_—
Prospective Security Offerings—
Our

Railroad

Field

Dealer-Broker
..

Observations—A. Wilfred May-..—

Public

Investment

the

Events

Coming

Cover

(Editorial)

the facts.
Page

Page

U. S.

a fatal blunder.
address to "Junior Investment

our

should have

Regular Features
As We See It

was,

Result of

Deficit Financing

Alegre Sugar

Lea Fabrics

type attempted by the President of the
Exchange on the subject of the Securities
should have omitted the Maloney Amendment..

—,

Punta

Instead of

Training

Military

Broadway

Teletype N. Y. 1-714

Haytian Corporation

remedy lie in removing the objection¬
Act provisions and the regula¬

The failure to deal with that

<5ov. Harold E. Stassen Lauds

Bell System

No talk of the

Investors

Security Dealers Assn.

2-4500—-120

New York Curb

Selling of

Federal Reserve Bank Foresees Increased

REctor

should be further extended.

22
22

Canned Dog Food Starts Comeback

U. S. Securities by Foreign

Established 1908

Members N. Y.

regulations to be applicable to the

We find Mr. Truslow's address

Alleged Danger to U. S.
Economy of Britain's Dollar Crisis
-m

N. Y.

J.K.Rice,Jr.&Co.

same

these restrictions

National City Bank Disputes
/

Central Hanover Bk0 & Tr.

say

securities.

21
21

...

Haile Mines

U. S. Finishing Com. & Pfd.

securities which do not exist with respect to

Reports Foreign Oil

Domestic Supply—.

Topping

20.

—

Cuaranty Trust Co. of New York

Hoving Corp.

lack of sportsmanship is evident in Mr.
Truslow's dealings with borrowing on securities. He indi¬
cates that there are certain restrictions on loans on listed
\

Credit Far Below

Commercial Credit Co. Sees Consumer

STREET, NEW YORK

Jack & Heintz

"because I am hamstrung,. I want the other
hamstrung" is a. sorry position to adopt and
shows particularly poor sportsmanship. .

us!

See

Aeronca Aircraft Com. & Pfd.

fellow to be

Need for "Sterling Area'^

rules and

same

President of Kentucky Chamber of Commerce,

E. R. Muir,

controlling listed securities is the apparent purpose
improve the position of the Curb Exchange and to detri¬

Rather does the

want*

Telephone: WHitehall 4-6551

able parts of the Securities
tions in the first instance.

at 50% Above 1939 Level—'— 17

Recession.—

Sees

nobody

over-the-counter market.

Report

Electric Co.,

practices, the

proxy

those

Charles E. Wilson, President of General

same

for the

Assets

them?

99 WALL

ing that because these requirements and regulations have
been burdensome as to the auction market, it will be a cure

Secretary Snyder Releases Italian

bid for

There can be 110 question that as to listed securities the
requirements of the Securities Acts have been particularly
burdensome. The answer certainly does not lie in proclaim¬

Continued High Production Level
Estimates New Home Building

mentally alter the position of the over-the-counter market.

Air Line, Sees South

Purchasing Agents, Headed by Robert C. Swanton,

needed.

beem

have

that

until

around

kicked

stocks

any

officer and director ac¬

—

Erroneously

Margin Case Reported

servile effort where

same

Workers' Down„

Farmers' Buying Power Up,

countability and liability of insiders to recapture of profits

Reports Mortgage Bankers

Mortgage Debt Rising Sharply,
Association of America

whole,

KICKING IT NOW"
Own

reporting requirements,

.International Statistical Conference to Meet—
Legh R. Powell, President of Seaboard
Making Economic Progress

the

Drawn for Redemption—.—

Oslo Bonds

same

1——i:

(Editorial)——

free markets and free enterprise

the-board securities under Vie

Cover
Compulsory
32

Truman

to Achieve Peace:

We Mean

■

"I WONDER WHO'S

The

Mr. Truslow's genuflection before the Securities and
Exchange Commission comes as no surprise to us, recogniz¬
ing, as we do * that the head of; the New York Curb Exchange
has an ax to grind which is intended to bring into realiza¬
tion the adoption of the so-called principles, misnamed
"equalization."
■
i
The motive behind Mr. Truslow's desire to bring of£-

AND OOMTAWY

Acts—A Few Problems and Some Guesses."

t ;

;

■

Recently, the Junior Investment Bankers and Brokers
was addressed by Francis Adams Truslow, who
chose as his topic "The Securities Business, and Securities

—

—-—

—

Communists Really Want?' ' : /
.
—Robert Thompson and Eugene Lyons——

"The

Association

Bonds Well Above Prewar Level
\
—Ralph C. Baker____
_______
9
Full Building Production Ahead—Morgan L. Fitch—
« 9
Smaller Meat Supply p-nd Higher Prices Ahead
—Charles A. Burmeister——;
—
1, 13
The Low-Down on Europe—Roger Babson
—
13
Government in Economic and Industrial Relations
Ewan

;

Real Estate

What Do the

should have been dealt with.

7
<
7

El Dewey_^__

—Gov.. Thomas

His talk

and NASD to control: "Spreads" also negligently omitted.

courage was

LicHTcnsTEin

B. S.

Failure to deal with the Maloney
missing an opportunity. Attempts by SEC

effect of the Securities Acts

—6

—

Apologist

President's address before Junior Invest¬

inadequate.

Amendment scored

Weinwurm
^
%
The Dangers of Our Foreign Policy—Sen. George W. Malone
i
Gold and Inflation—Thomas I. Parkinsoni , 4
T)ie Bureaucrats Don't Know How Securities Are Sold!
/ ■'
—John Dutton
*
/—
4
Freedom Is Our Heritages-Gordon D. Palmer-,X
—6
Laber Day Statements by Earl Bunting, President of NAM;?
President Harrmy S. Truman, and William Green, Presi,
Marshall Plan—Ernest H.

(907)

Brokers Association discussed.

ment Rankers and

—Cover

Report from Main
Future

CHRONICLE

FINANCIAL

Spencer Trask & Co.

Members New-York

25 Bro»d

Newburger, Loeb & Co
;

Members

15 Broad

New

York Stook

St., N T. 5

Bell

Stock Exchange

Street, New York 4

Teletype NY 1-2033

135 S. La Salle St., Chicago 3
Tel.: Andover 4690

Tel.: HAnover 2-4300
:

Teletype—NY 1-5

Exchange-'

WHiteh.II 4-6330

Members New York Curb Exchange

Albany

Boston

* Glens Falls

C. E.

Unterberg & Co.

Members IT. Y.

Security Dealers Ass'n

01 Broadway,

New York 6, Nt Y.
Green 9-3565

Telephone BOwlin*
Teletype

Schenectady

- ■>

Worcester

NY 1-1666

THE

(908)

COMMERCIAL

& FINANCIAL

CHRONICLE

Cold and Inflation

ward & co.

Thursday, September 4,
1947

BUSINESS BUZZ

By THOMAS I. PARKINSON*

President, The Equitable Life Assurance Society of U. S.

1st. 1926

Insurance executive, taking note of rumors that

Treasury price of

gold will be increased from $35 to $50

per ounce, points out such
inflation, increase our gold supply and tend
to give foreign nations more of our resources without value to us. *
Says it would be typical example of New Deal policy of treating
economic ills by ice packs and stimulants instead of
permanent cure.

action would add to

The

Abitibi Power
"

inflation

our

Alabama Mills

the

sources

American Hardware

Banks

that

further

gold purchase

has

enabled

them

bapk credit -and
thereby maintain the money sup¬
ply at a higher point than would

Our

otherwise have been

policy

the

purchase
than

$15 billions of

has

been

that

newspapers

possible.

announced
a

gold, attracted

in London that the United

Treasury will

try by the in¬

this

coun¬

crease

Elk Horn Coal

General Dry Batteries
General Machinery
Hooker Electro Chem.

Lanova*

Lawrence Port. Cement*
'

Liberty Aircraft Prod.
Majestic Radio & Tel.
Michigan Chemical
Minn. & Ontario Paper
Moxie

Nu-Enamel

commercial

cess

And

war.

Stand. Fruit & Steamship
Standard Ry. Equip.

Sterling Motors*
Stromberg Carlson

Treasury

United Artists*

j United Drill & Tool "B"

less

than

the

their expansion of loans be¬
the Federal Reserve Board
war-time

Federal

cates
the

its

Reserve

that

Banks

will

market. It is this freedom of
the commercial banks to
dump
their
short
term * Government
paper
in
the
Federal
Reserve

son

release by Mr. Parkin¬

distributed

Continental

Press Syndicate.

results

will

The Treasury's balance

(1.)

automatically increased by $15
per
ounce
of
gold
heretofore
bought by the Treasury and still
in its possession. This windfall to
the Treasury would amount to
ap¬
proximately $10 billions. This ad¬
dition

would

the

Treasury's balance
and require
Congress and would
for

immediate

The Bureaucrats Don't Know
How Securities Are Sold!

Armed Forces Leave Bonds which

nearly $2

billions.

It would also provide the
means,

without

crowding the Treasury,
paying the balance due on the

results of
for

increasing the price paid

gold

would

seem

first

thought to be helpful—certainly
helpful to the Treasury. But that's
not the whole

story.

(2.) The increase in the
paid by the Treasury for
would promptly increase the
of gold to this
country and

further, expansion

credit

That
a

and

would

the

flow

that

supply.

inflationary with

The banks whose
administrators
ought to be wary of such further

expansion

probably

our

(Continued

paper

money

along because of

page

19)

officials

and in volume of

concerns

concerned

sell securities.
would be

From the tone and tenor of
the address, one

justified in believing that*

as was

bureaucratic mind which believes that

Art Metal Construction

General

Cen. Pub. Util.
5y2s, 1952

Oxford Paper Com. & Pfd.

Sold

honest until proven innocent;

Quoted

Goodbody & Co.
Members TV. Y. Stock
Exchange and Other Principal Exchanges

115

Broadway, New York

105 Went Adams

Telephone BArclay 7-0100

St., Chicago

Teletype NY

1-672

Graham-Paige Motors Corporation
4%

1-1286-1287-1299
Direct Wires to

Philadelphia

am] Dos

enterprise

„

Uartf'd 6lll

mean

Mr. Hanrahan in this

Angeles

phones

JBuff. C024

Bos. 2100

To.
*•«:»

we
put the genial and likable
category, but he should get somebody

speeches that has had

some
experience selling
attempts to tell others how they should
■

;

investments.

Co.

New York

■

They

skeptical of

Members New York Security Dealers Association

41 Broad Street

that

;

are

in the main

securities and those who
attempt to sell them

As Mr. Hanrahan
said, the public does not know very

INCORPORATED
*'

dis¬

it may seem,
people don't line up in front of
your office to buy securities.
They don't go out looking for
someone to sell them stocks
and bonds.

request

Seligman, Luhctkin

are

givers.

This does not

Strange

Osgood Company "B"

people

down to
Washington and get jobs that enable them to satisfy
their frustrations
by threatening other people and assuming
roles of sanctimonious advice

do it.

Tennessee Products & Chemical
Analyses

Convertible Debentures due 1956

Fashion Park, Inc.

Security Dealers Assn.

most

is a strange
thing that so many hook worms, pseudo
intellectual geniuses, and other
malcontents somehow drift

to write his

BROADWAY, N. Y. 5

thief, deliberate sharper and
speaker only indi¬
thing) suffers from a type of

done in this address the

cates that (whoever wrote
the

Bought

ghost who had

Now it's all to the
good to shake the stick once in a while
and tell the members of our *
rapidly shrinking industry that
the SEC still has its sleeves
rolled up and one
eye open. But
when you use such words
as

Durez Plastics & Chem.

1926

M Y,

some

sold securities in his life
had tried hard to
put some
ideas across to the
boys assembled there but again he missed
the mark.
never

Cen. Vermont Public Serv.

Machinery Corp.

Aug.

Again this well meaning new Commissioner of the SEC had
some, things to say about how a
security salesman should

American Hardware

request

REctor 2-8700

investment capital needed.

Security Traders Association.

"huckster"

Ward & Co.
120

new

Mr. Hanrahan made another
speech in Boston
14, 1947, before the National

securities before he

Membtrs N. Y.

in number of investment

banking and
business, writer attacks SEC
ignorant of securities business.
Says SEC should be
with problem
facing American industry of raising the

brokerage

gold

wallop.

will

pointing out drastic decline

billions of dollars of

of. bank

money

By JOHN DUTTON

price

would again provide the commer¬
cial banks with additional
re¬
serves which would be
.available

for

BALLET "

ex¬

penditure. It would make easy the
task of the Treasury to cash the
total

automatic

action by
available

OSCOt-

Aetna Fire Insurance

Puget S'nd P. & L. Com.
Standard Gas Elec.
Tide Water Pwr. Com.

rule

Treasury Bills and Certifi¬
fropa the member banks, at

*From

immediate

British loan and any other similar
loans to foreign countries. These

cause

continues

and

policy. From the

been

this lack of
reserves, the commer¬
cial banks have been able
to con¬
tinue their purchases of bonds
and

will

is,
required

reserves

New

by law to be maintained against
their
deposits.
Notwithstanding

Cumberland Gas
Federal Water & Gas
New Eng. Elec. System

upon

subscription
by pur¬

and

especially those in
Chicago, have

Amer. Gas & Power
Cent. States Elec. Com.

Circular

issues

what

results

available for expenditures will be

the market.

and

Vacuum Concrete*
Wurlitzer

billions

short of reserves and much of the
have had a deficit, that

take

Tokheim Oil Tank
U. S. Air Conditioning

•Bulletin

time

the

Taylor-Wharton*
Textron-Pfd. & Wts.

this

Since V-J Day the commercial

Rockwell Mfg.
A. E. Staley

ex¬

just prior to the late

bonds both

banks,

Purolator Prod.*

;

the

occurred.

was

consider

follows:

of reserves that enabled the banks
to buy many billions of Govern¬

York

Though

stage, it is in¬

point of view of the United States

the

rumor

of the

some

re¬

than $7 billions of

reserves

chases

Polaroid

$35

It was largely this
purchase of
gold, one of the New Deal's prin¬
cipal
financial
policies,
which
provided the commercial banks

with

the

teresting
be

ounce,

built

to $50 an ounce.

ounce

others of such

banks, enabling them

ply which has

Philip Carey

Taca

Parkinson

serves

ment

■

ounce

to extend credit, which increased
bank deposits and provided most
of the increase in the
money sup¬

Hoover Co.

still in

paid by
Treasury
from
$21
an

Gt. Amer. Industries

•

the

States

the

price
gold from $35

which it pays for

the

price

increase

the

persists

rumor

Diebold*
•

expand

Cinecolor

years

middle 30's.

Aspinook Corp.
Brockway Motors
Buda Co.,

> •* *"
■

supply during the past few

money

which has taken it from $60 billions to $165 billions had as one of
its
principal

(Continued

page

20)

4, N. Y.

*In

1933, before the SEC

and the NASD

came into being, there
6,614 firms in the stock and
bond business maintaining 2,24^
branch offices whereas
today there are 26% less firms and 20% lest
branch offices.
And 1933 was a
year of depression!
If comparison it
made with prior
years, the decrease is even more
were

appalling.

166

Volume

Number 4626

THE

.'(909) r-5

CHRONICLE

FINANCIAL

COMMERCIAL' &

e
Production

Electric Output

•

Observations

Carloadings

State of Trade

Retail Trade

and

■ i

Commodity Price Index

s===

Food Price Index

Formed in Cihrcago

CHICAGO, ILL.

Business

THE

Failures

SEC

PUBLIC

AND

of Kitchen &

| the partnership

Auto Production

Industry

MISCONCEPTIONS

■*

mission's

Securities and Exchange Com¬

York
anni¬
of the event) did not bring forth more decisively-stated
conclusions, and has not elicited wider public

report of its investigation of the behavior of New
Stock Exchange trading on Sept. 3, 1946 (just released on the

Commodity price trends have again resumed their upward course
following a period of general stability when some prices touched
lower levels, states the "Business Bulletin,", a
monthly paper of the
La Salle Extension University of Chicago.

versary

circulation for those conclusions which it

says they are very
#nd only a moderate rise would sustain the rate

being sustained by four major ones,and that the
of them will determine future trends.

con¬

It adds that

they are the factors to watch closely during the remainder of this
year, for among them will be the first signs of a reversal which,
according to present indications, may be deferred longer than was
generally expected earlier this year. - *
•
<
'

These
to the

influences, which continue to be predominant, according
"Bulletin," are:

(1) Extraordinary demands from domestic
and

services;

(2)

for goods
large spending by business concerns for new
consumers

plants, for additional equipment and machinery;
shipments abroad, greatly in

(4) large volume of construction, which, in spite of

return; and

high costs, is scheduled to
close to

excess

(3) enormous
of the imports received in#

establishing

new

surpass

last

year's

and

come

very

peace-time peak."

The paper

observes, that "while not all these forces can be con¬
at present levels, they do not yet show any
marked signs of falling off.
These large shortages and the unfilled
demand occasioned by wartime restrictions on output of certain goods
have only gradually been met and in some lines the unfilled orders
are increasing at a rate faster than production.
sidered

permanent

Concluding, it states: "Only a marked change in consumer atti¬
and
different buying policies in connection, with business
spending and exports will greatly moderate the current rate of
activity.";
•" •
tudes

political motive behind the raid on the market
against sound stocks with high sustained earn*
ings and good prospects. The people have a right
to know if the real reason is not alone to reap
tremendous profits but also to affect the coming
elections."

Wilfred

May

'«

•

steel industry was hampered
a lack of pig iron, and th£
necessity for mechanical repairs on steel mill equipment which con¬
tinued to prevent a substantial increase in steel output.
t

steady and at a record high. The
last week by the steel scrap shortage,

engineering construction totaled $136,943,000, an increase
a week; ago.
Lumber production for the week ended
1% to 205,099,000 board feet.
New orders for
lumber declined 5% and shipments declined T%.
Civil

Aug.
I,

above

16 .decreased

Chemical

production increased again last week with output of

reaching record proportions. Apparel
output rose considerably as the manufacture of woolen goods proceeded at
capacity.
Shoe production, however, increased only
slightly, with some shoe manufacturers reporting difficulty in keeping pace with the large demand. ,

certain
■

;

types

chemicals
•

•

RATE—RAW

STEEL PRODUCTION CONTINUES AT HIGH
MATERIALS TIGHT

week bore earmarks of wartime days.
materials for steelmaking were
tighter than ever according to "The Iron Age," national metalworking weekly, in its current survey of the steel trade.
Further
plaguing the steel companies was a cycle of repairs to overworked
equipment which might, before it was completed, add more weeks to
already deferred deliveries.
The steel industry the past

■

Demand

was

the increase but raw

shortage and the
hot weather, says the magazine, took such a toll in the past few
months that most steel firms were somewhat behind on promised
deliveries with carryovers increasing with every major producer
and some firms reporting as much as 8 to 12 weeks delay in original
The bad effects of the coal strike, the scrap

promises.

New

H. Murphy

James

the Chicago
to
Kitchen & Co., 135 South La Salle
Street.
Partners of the new firm
are W. T. Kitchen, J. H. Murphy,

Murphy, members of
Stock

•

Exchange,

successor

summarizing its currently-issued
report states > that it "reaches no conclusions.^ and A. L. Godie.! Mr. Kitchen was
While forthrightness and integrity in abstaining from unwarrantec previously a partner in Kitchen &
inferences are to be commended, it is unfortunate that after a full Co. Mr. Murphy and Mr! Godie
year of study by its staff,' resulting in a 69-page report replete with
were with Cruttenden • & Co., in
statistics and charts, the Commission feels that it cannot decisively which Mr. Godie was a partner.
\
answer and stifle once and for all the above-mentioned charges which
are so frequently aired.
The SEC in

Pussyfooting

that

short

the subject of
was

selling may [italics ours] be less than that of
a similar volume of sales against inventory."
And the above-quoted
abstention from definitive conclusions is made in the face of a find¬

net

effect

short

ing elsewhere in the report that "we find no evidence that market
prices depended at any moment on manipulative activities. Nowhere
does it appear that the overall market action resulted from planneo
or concerted action by any group."
Limitations Acknowledged

tells

us.

Drawn for Redemption

that
than

We shall continue

other additional information

it may not be possible to reach a more
one has
yet been able to achieve, of

sinking fund
bonds, 'municipal

19-year 4%%
loan'

external

April 1,

external loan of 1936, due

notified that $191,-

1955, are being

by lot for

bonds have been drawn

fund

these

amount

principal

000

(Nor¬

City of Oslo

Holders

way)

sinking

through the

redemption

Despite its year-long investigation, the Commission admits
"more needs to be known, and we propose to find out more
this highly intensive but limited study
also to consider whether, with this and

(Norway)

Bonds of Oslo

short-selling, although its figures show

for only IV270 of the day s volume, int
decisive than to say: "Consequently the

sales accounted

Commission

rolls

Kitchen

Oct. 1, 1947 at par.

Re-1

at the New
of Kuhn, Loeb & Co.,

demption will be made
York office

fiscal agents.

with such movements as that of a year ago
important factor than are the price changes. For

the market in connection

weeks.

Unemployment insurance claims continued to decline with pay¬

of 25%

precise definition than any¬
what constitutes a fair and
orderly market within our tradition of free markets."
If the delay in coming to such conclusions has been warranted,
/
Reviewing the trend of total industrial production for the past
at least let there now be no further procrastination by the Com¬
■week, it is noted that output rose moderately, assisted as it was by a
mission, after 13 years of existence and flow of reports, in definitely
reduction in the number of vacation and hot weather closings which
The technical orderliness of
enabled some manufacturers to schedule output at a higher level stating its principles in this sphere.
than in the previous eight

;

Even
:

15 years, was insti¬

actually

holdings at low prices are again cooperating to
unload so that they can again accumulate the
same shares at low figures. .
There must be

good in most lines
of activity above .the high level of 1946.
The differences between
the two years, it notes, are steadily growing less and little further
advance is looked for until some of the; major■;maladjustments in
prices, incomes and costs are corrected.
:
»
; '
: ■;:< :
Ij

business

the widest

break,

upjthe prospects for fair business, its

tinued strength

gated by Representative Adolph Sabath's not
uniquely voiced charges that "those professionals
and some of the big holders who acquired their

Referring to strong supporting influences and their relation to
present high level of business activity, the "Bulletin" says that

mission's investigation of that day's three-millior

it continues to tilt downward.

•>/

•

It will be remembered that the Com¬

reached..

Continuing, the "Bulletin" notes that industrial production and
business volume at the same time have declined a little, but both
remain within 5% of the postwar peak reached earlier this year.
Pointing out that the plateau on which all activity is taking place
is still high, being over 80% above the average of the prewar
years,
-Taking

Announce¬
formation of

—

ment, is made of the

By A. WILFRED MAY

It is indeed unfortunate that the

the

Kitchen & Mwphy
Steel

The

much more

castigation of the Sept. 3 decline in the
188 to 180 as "unwarranted," subsequently
prices declined another 17 points, and even nowl stand at the lower
the

despite

' u":' V. '
');
question of market structure are the
floor trading rules; which the Commission shotild either defend or
propose to amend. I
<
V'
I ' ;
v - V: ,";I 'V
Th® Tax Factor
...
■/.
Of greater importance to the market's liquidity, however, are
margin regulation, in controlling activity, and the heavy tax on
short-term gains and on short-sale profits, and the 25% tax ever
on long-term gains.
While stock market credit regulation and tax¬
ation may .not be technically within the province of the SEC, surely
these factors should be at least referred to by it as positive influences.
In further studies the SEC also might well exhaustively go int^
the short-sellers' behavior over the long-term. Such a study could
throw valuable light both on the much-mooted effects of the active
bear, as well as on the alleged wisdom of the more professional
trader.
Statistics fpr.thp eggi;egate short interest going back through
the last decade as previously cited in this colurhn, and by the find*,

"distress" figure.„

ritibi Power & Paper

Brown Company

■

Closely coupled- with the

•

Minnesota & Ontario

52 WILLIAM

correct, the bears, contrary to popular
"insiders" who are more often
wrong than right on the market.
In any event, a correct and authen¬
tic conclusion by the Commission would surely be extremely worth¬
If such data are

represent another group of

Toronto

dealers only

brokers &

banks,

For

1-395

Montreal

New York

National Union Fire
•'*•••••'

.!;*»< >'■

* V,.»

••• r it I

Insurance
Pittsburgh

15 years the size of the short position has
greatest at times of low market prices and smallest during

credo,

HAnover 2-0980

ST., N. Y. 5

Bell Teletype NY

during the past 10 to

high markets.

Paper

HART SMITH & CO.

interest in individual stocks contained in Robert
Shadoan's article in the "Chronicle" of Aug. 14, last, indicate that

been

Consolidated Paper

ings for the short

while.

equipment which was to have been

widespread

Dow Jones average from

Stock and Rights
Bought
\

—

Sold

—

Quoted

•

«*

qAllen & Company
New York 4

30 Broad Street,

Telephone HAnover
Teletype NY

installed this year to

2-2600

1-1017

(Continued on page 32)

Ohio Match

LAMBORN & CO.,Inc.
Universal Match

Portland General Electric

Tennessee Gas

(When Distributed)

Stock

& Transmission

Bought—Sold—Quoted

Exchange Contracts

WALL

5, N. Y.

SUGAR
Raw—Refined—Liquid

Stryker & Brown
50 BROAD

Tel.

HAnover

ST., NEW YORK 4, N.

2-397Q

;

FREDERIC H. HATCH & CO.,

INC.

Exports—Imports—Futures :

Established 1888

Teletype NY 1-1582

STREET

NEW YORK

MEMBERS N. Y.
63 Wall

SECURITY DEALERS

Street, New York 5,

N. Y.

ASSOCIATION

Bell Teletype NY 1-897

DlKby

4-2727

Some Conflicting Lator

Freedom Is Our Heritage
By GORDON D. PALMER*

banker extolls Constitution

priceless

our

Sees dan¬
ger in both ideological conflict of Russian communism and our own
democratic system and in present labor-management conflict that
is impeding production.
Says statements regarding high business
profits are distorted and points out need for capital investment to
heritage, and reviews attacks on free enterprise system.

Mr.

took

place in the latter part of the 18th Century
which have had the greatest influence on mankind. One was mechan¬
ical.

steam

the

engine
James

tion."

by
Watt,

other

was

litical.

po¬

where

United

the

States
America.

events

bear

would

greater

hu¬

heaviest

the

could enjoy an
things.

numbers

abundance

material

Un¬

these

men

burdens in providing an ever in¬
creasing supply of goods, so that

Constitution
of

free

instead

machines

mans

the

political

might work out a pattern of life

Conven¬

gave

and

which

within

power,

tion which

given us
order

has

law

with effective control of

was

the Philadel¬

phia

which

bulwark

framework

Gordon

their

were,

Frequent Changes

Palmer

two

The

in¬

combined

since

era

the

Constitution,"

our

creation

160

ago,

years

fluences have been in close rela¬

has been the least static period in
tionship in the remarkable devel¬ history.
Change
has
been the
opment of our American way of order of the day in science, reli¬
life.
1
gion, economics, education, indus¬
In
the
July
"Atlantic," Eric try and government. Nothing has

•

President

for

plane

Truman

issued

following ' Labor, Day

•,

state¬

ment:

address

dent

of the

spoke as follows:
Labor

-.Labor

Day
us

tunity

your

cial

to pay

spe¬

working
and

men

women

the

contribution

United

would quickly

the free work¬

This

ing

been set aside

think

through

much

and

men

States.

day

the

women

of the

propag a n d a

United

States

tion's

with which he

have

their country's

being bom¬

barded

this

one

the

our

try's

bor

great-

Earl

ness.

Bunting

1 9

would

inevitably reach thd
conclusion that, in spite
of all
the hubbub about high prices, he
has made encouraging progress ip
the goods value of his wages and
consequently in his standard of
living, despite the limiting influ¬
of

ences

long

depression

and

five years of war.

<■

■

evaluate

during
to

Truman

is
to

accomplishments

and reconversion, and

Labor Day,

therefore, should

Jpe a holiday not alone for cele¬
bration of past accomplishments,

Johnston

made
for

declared,

the

"America has

distinct

two

contributions

betterment

the

indeed,
same

concept of the dignity

One is the

world.

their

address

made

Mr.

Palmer at University of Alabama

summer^ commencement exercises
•on

August 29, 1947.

born, but it is essen¬
document today it
was
in
1787. Strangely enough,
"the youngest of the great nations
of the globe enjoys the oldest gov¬
same

scholar

the

their

Coke

18th

Century
current map

upon a

world

difficulty
tions
by

Bayway Terminal
&

of the

looking down
of

concluding
better

would

have

great

in identifying the na¬
their boundaries
and

governments

than

current

things

are

casual

events

to him

would

;

Despite decreased value of the
57%

Cotton

advance

Take, for example, the head of
family of four averaging $23.86
week

1939

and

Some Examples

May,

1947

and

sonal

Exchanges
6

York

and other

Baltimore

Stock

leading exchanges

CALVERT ST.,

BALTIMORE
Teletype BA 393
New York Telephone REctor
2-3327

$48.46

income taxes and

the cost of

after

deducting

Central

America

and

was

dominated by the Spanish. In Eu¬
rope,

Great Britain is almost the

only

government

proximates

that
(Continued

that

Bell

even

1787,

ap¬

yet

government statistics.

It
it

ridiculous

believe

power

1 Bulwark

boston

the

Republic—Hendrick.

st. louis

the

that

face

purchasing

United

States will

fail, if employment remains at
its present level of 60,000,000
per-^
and production continues to

sons

rise.
and his
are

earnings and whether they

prices,

nore

INVESTMENT SECURITIES

Preferred

worker

;

...

•

street

••

•'

Walter J. Connolly & Co., Inc.
Street, Boston

billion

annual
power

earnings

are

same

high

now

fact

spokane. wash.

Consider H. Willett

NORTHWEST MINING

SECURITIES
For
or

Immediate Execution of Orders
Quotes call TWX Sp-43 on Floor

Murphy Chair
Company
Reliance

Varnish

Co.

Exchange from 10:45 to 11:30
A.M., Pac. Std. Time: Sp-82 at
other hours.

STANDARD SECURITIES

I!!E

BANKERS BONO
Incorporated

1st

Floor, Kentucky Home Life Bide

LOUISVILLE 2, KENTUCKY
Long Distance 238-9
Ben

CORPORATION
Members Standard Stock
Exchange
of

Tele. LS 186

Brokers

Spokane

Dealers
Underwriters
Peyton Building, Spokane
-

Branches at

Kellogg, Idaho

and

increase

which

this

$30

repre¬

Yakima, Wn.

level.

wage

should

people
ever

not

at thg
There ar

earners,

working

before and

thi

ignored whe_r
considering whether prices are loo
high- to move all the goods which

being produced.
The danger which lies herein

are

inflation; not fear that
ican

the Amer¬

people

power.

lack
purchasing
And this danger will con¬

tinue unless the American
people

has

and

men

proved

But

these

^possible

con¬

have

rewards

only

because,

Wherever

labor

movement

industry

respon¬

flourishes,
produc¬

prospers,

increases,

the

and

living

standards of the

community, State
or "region improve.
The

right

join

union

and

Behold the thriving cities of our
country, the broad highways, the

swift

transportation
lines, the
mines, the mills, the factories and
the
towering
office
buildings!
These
the

are

skill

lasting monument

and

the

know

that

while

earn¬

ings of individuals were going up,
prices were advancing, with the
inevitable

result

(Continued

that

the

page

dollar

33)

American

workers.

America

has

been

endangered, labor responded will*
ingly to the call for service. This
was

especially

last

true during the
War, when American

World

workers

broke

production.
nation

records

for

any

workers

the

world

came

close to the high standard of

even
war

all

production efficiency set by

the workers of the United
In view of this record,

spread
the

attacks

State

labor in
and the

against
Legislatures

•

States.

the-wide¬

Congress of the United States
through the enactment of vicious
and

repressive
legislation,
are
deeply resented by the working
people of our country.

which
are
being
held
throughout the nation.

unquestioned

ment

problems is indispensable to

mon

our

democracy, 'and must be
safeguarded against any "attempts
by

misguided

groups
or

ill-intentioned

individuals to

weaken

replace it.
Good

cannot

relations, however,
brought about by leg¬
They are created by the

islation.
and

men

women

concerned,

co¬

operating sincerely and earnestly
within

the framework of

amount of

mini¬

regulatory law. I

believe that enlightened labor and

Americans.

satisfied' with
of

will

less.

Day rallies

spirit of honest

for the

and

manage¬
concern

welfare of all the people,

will speed
and

labor

the

lockouts

day

when

strikes

discarded, and
labor's freedom to

are

will safeguard

solve its problems without restric¬
tive government regulation.

Government, also, has a respon¬
sibility for promoting the.welfare
of

all the people

by pointing out

and eliminating injustice and in¬
equity.
In order „to enable the

stitutional

and

Department

discharge its
legal

duties,

Labor

mental functions which

propriate

part

con¬

the

must

are

ap¬

are

across

will

the nation,

stirring protest against
this new wave of hostile, antilabor legislation.
register

short-sighted employers and
reactionary
lawmakers
believe
they are rendering a public serv¬
ice when they seek to destroy ah
agency like the American Federa¬
Do

part of the economic

who

workers

tion

operation

many

gathered here and in other Labor

possible through legislation.

ment, in

never

The

enlightened management, working
together, can accomplish far more
by peaceful bargaining than is
Co¬

today

labor
is
rallying its
forces to fight against oppression
and
depression.
Our goals are
freedom
and
security
for all

Today,

thousands

labor
be

adequately staffed, and be given
jurisdiction over those govern¬

all

the

table at which labor and manage¬
sit to work out their com¬

choice is

stabilized at levels which are
and reasonable to both the
producer and the consurtjer.
;

and

This large and impressive gath¬
ering, here in Soldiers Field, is
typical of many similar meetings

own

government to

fair

resourcefulness

brains

today^ and is sanctioned and pro¬
tected by law.
The bargaining

one's

buy what they need, rather than
all they
want, until all produc¬
tion pipelines are filled and
prices
are

service

labor

other

the wheels of indus¬

try to 'turn.

tion

im¬

stronger, they de¬
increasing responsibility

for helping

sible

with higher

great

made

growth,
progress
achievements of America.

grevy

veloped

there

work¬

rewarded

women

the

Whenever

shorter hours and
working and living

ditions.

mum

purl

record, but 33%
wage

family than

louisville

American Air Filter

nation'^

the

Not only are the workers of the
country
receiving
the
highest

people
Members St. Louis Stock
Exchange

Tele. BS 128

American Turf Ass'n

to ig^
15-millionr

prone

the

sents.

St. Louis 1,Mo*

Tel. Hubbard 3790

are

addition

chasing
509 Olive

24 Federal

entirely

labor force since 1939 and the

Boston & Maine RR.

Traded in Round Lots

talk of the individual

sufficient in the light of pres¬

ent

Stix & Co.

Prior

America

wages,

While

ing

discount¬

ing the effect of the sharp rise in
living, the actual pur¬
chasing power remaining to this
worker at present prices is 27%
higher than in 1939, according tb

30)

page

per¬

future,

hope which that future

organized labor movement

unions

large part of North America

Members New

The

been

living since 1939, the dou¬
earnings during
that- time
has
given
American
workers
a
substantially
higher
actual
buying power than they
had eight years ago.

Portugal, in 1787,
both monarchies, ruled all South

STEIN BROS. <5, BOYCE

in the

the

holds for mankind.

bling of annual

Mills

and to the

indicate—

this day.'

dollar and

per

Spain

Lane

survey

America.

Common

lot

and appreciate more fully the fitting tribute that all America pays

would be less

familiar to him.

Jacksonville Coach Company

that

cost of

ernment."!

BALTIMORE

Coal

Consti¬

our

was

tially the

Davis

Few peoples,
living under the
which
governed

now

ancestors when

tution

*An

are

systems

„

He would find ample cause for

mutation.

escaped

dedication

for

Green

the

■

but

William

contribution

to*

plan for the peace we still must

win.

the part of

and

enemies in battle,

our

war

government

appropriate moment for

and

appreciati
President

47,
two
after we
our

rec¬

ognition

years

defeated

It is

formal

Bay

efficiency

of labor.

ship. This La¬

coun¬

na¬

tribute

the dignity

and

leader¬

world

has

' the

prosperity and

basic elements
of

made

p r O g r e s s;

day of tribute

holiday of

the

Day
holi-:.

day—the

oppor¬

Statement

Chicago on
Day, William Green, PresiAmerican Federation

Labor

tribute/to

World War II,

see

the

leaving

yearly

1939

before

and

Brazil,

offers

situ¬

....

Thus, our Constitution has been

The

inventor.

the citizen, the other is
technique of mass produc¬

man,

the

the Scottish
f

with his
ation

was

the invention

Before

If every

American worker would
devote a small part of his Labojr
Day holiday to an objective revieVy
of where
he stands financially,
a s
compared
*.

William Green's

Statement

following is the statement
of Earl Bunting:—
*
i

high level of employment. Holds taxes are destroying
incentive and bureaucracy is impeding progress.
Says free enter¬
prise is hope of world.
events

President Truman's

Bunting's Statement

The

maintain

Two

Day Statements

Among the conflicting Labor Day statements issued over the week-end this year ty
"Chronicle" has selected for publication the statements of Earl Bunting, President of
the
National Association of Manufacturers, of William Green, President of the American
Federation of Labor and that of President Harry S. Truman.
'
"
"
"
•«!

President, First National Bank of Tuscaloosa, Ala.

Prominent Southern

Thursday, September 4,
1947

& FINANCIAL CHRONICLE

THE COMMERCIAL

trial

Labor,

life

stands
wark

can

our

unshakeable

defense

system

way

The

vital

and indus¬

terprise

which

and

country

bul¬

the free

en¬

our

Ameri¬

and

•

of life?

people cher¬
ish their freedom, liberty, and th6
fruits of democracy.
They will
not remain
passive while these
masses

blessings
vaded

They

are

our

undermined and in¬

by anti-labor legislation.
will not tolerate the at¬

tempted
unions.

destruction

their

Now that the war is over,

they will

longer subject them¬

selves to government controls and
domination, 'Instead, this gigantic
Labor

Day rally here in Chicago,

the center of the nation,

notice

of labor's

will serve

determination to

department

fight

never

fought be¬

created to foster, promote, and de¬

fore!

Our efforts will

be concen¬

velop

trated

the

earners

welfare

the

wage

.of the United States.

continued

page

33)

Mil-

it has
toward.

maintaining

the

(Continued

preserving
full
on

and

promise of

page

33)

Number 4626

166

ime

The

THE COMMERCIAL

Sleeping Brass
By PHILIP HARDING JORDAN

Writer opposes

asleep at switch when they

men are

It is said that tmany

(911)

A Woxld Not at War But Without Peace
Mr THOMAS E. DEWEY*
t

Contends higher

argue

CHRONICLE

compulsory military training in peacetime. Estimates

cost at three to eight billion dollars.

& FINANCIAL

up military
for basic military training.

Governor of New York

•

Speaking
♦

to the American Legion m New Tori City, Republican Presidential
aspirant advocates a proinvolving participation by all able-bodied young men under
military training. Praises biparti¬
foreign policy.
••
•
„
<

gram

Americans

are afraid that an enemy power
will make a second "Pearl (Harbor" sneak attack upon the United
•States and that1 we will not
—
—

san

—

Party is trying to foist upon
boy of 18 in America one

of compulsory universal mil¬

man

case

.every

year

Marshall said that it
take
perhaps one year

would

mobilize

trained

universal

reserve

around,
the

This is longer than the time

itary training: They are trying to

at the seams and the ball

military

fight back in

of war,

happy to welcome you to New York.
youcameand hope you have a wonderful time.

General

prepared to meet it. At least this
is the ballyhoo by which the Tru¬

rants

re¬

parks

and

with rifles and ideas that

organizations. They

comes?

do this in

ups

are trying to
spite of the following

facts:
?

(1) The Pearl Harbor tragedy
not caused by a lack of welltrained men in the ranks.
The

was

who picked up the Jap planes

man

in plenty Of time was in the ranks.
Pearl Harbor was the fault of the

obsolete

ready

Yet

some

al¬

are

another

cannot
t

war

the

build

ing to a special group could easily
guard our country from surprise

attack for centuries to

hotels,

can

hauntingly

are

conquest of the world. So they
pushed and crowded and stole

But

territories

assure

you

scene

seemed far gone in
self-indulgence
and
weakness.
The. despots of the world devel¬
oped a contempt for them and
saw no obstacle in
their path to

new

taxicabs.

which

world

and

then

slaving millions

the

dictators

nations, en¬
of people.
The

believed

that

free

the

This heartiest
of
nations could never develop the
group would
consist of highly- all ' welcomes
discipline and willingness to sac¬
higher ups, who (much like those trained scientific technicians. They by
Thomas £. Dewey
people
rifice which was necessary to save
in France) were asleep on the would be stationed in small' groups who are
deepthemselves.
That was the fatal
job, both in Washington and in at strategic points all over the ly grateful to those whose courage miscalculation
of
dictatorship
come.

Hawaii. That is almost always the continental United States and its
result of large peacetime compul¬ possessions. They would be trained
sory trained armies. They lull the to be always on the alert.
They
people into a false sense of secu¬ would be continuously and at ail

rity while they themselves fail to

times

remain

and

The

alert.

This

known

Sleeping Brass.

(2) The cost of the plan has
been variously estimated at from
$3 to $8 billion per year. The lat¬

supplied
latest

with

scientific

the

their
I

instruments

Victory in the past. France, had it
before, the Second World War.
What good did it do her? : Russia
had it. for years under, the. Czars

They

never

yet it did not forestall her defeat The Guardians of America. They
by. Japan" in the Russo-Japanese: Would' not be the Sleeping Brass.
War nor.by Germany in the First
World War. Neither did it prevent
the terrible and bloody revolution First
in Russia that followed it. In fact,
the

only two large world

that have

major

been defeated in

never

compul¬

never, had

war,

powers

sory military training during all
the years of their success. These

two nations

Great Britain and

are

the United States,

have

atomic

rocket

and State veterans services, all of
which

the

trainees

the universal

under

trained

compulsory training

plan-would have to be retrained
in case of war.

had

share of the

some

blame for permitting the
that free nations would be
over

for

That

aggresors.

illusion
a push¬
was

and external
ments

pressures.

Govern¬

collapse,

dictator¬

finally

ship is installed and

mil¬

lions of people are enslaved. The
worst tragedy which could befall
would

world

the

were

again to appear that the free peo¬
ples are to weak, morally and

physically, to defend themselves*
Destiny

has

the

made

States the leader among

United

the free

nations of the world in the strug¬

gle for peace and human liberty.
A first requirement for that peace

is that

in America be

tragic mistake on our part. It was
3
mistake which the r American

enough

that

(Continued

strong

nation

page

will

23)

announce

the formation of

ASPDEN, ROBINSON & CO.

Stack Exchange

Members of Philadelphia

PHILADELPHIA %

1421 CHESTNUT STREET,

happy to
say, was worked out in the closest
cooperation with the leadership of
program,

In peace as

Michigan

Coleman

Mark

and

Creek

office

cago,

conduct

general investment

business

dealing in

which

States

Gur

for

years

PENNSYLVANIA MUNICIPAL BONDS

the American

advocated

interest

the

listed

CORPORATE SECURITIES

United

Maintaining Peace

nation

now

facing the

victory in

permanent peace. More
than two years have passed since
the end of hostilities, and the hard
fact is that genuine peace seems
further away than ever. We are

under

BONDS

GENERAL MARKET MUNICIPAL

programs

whole.

task of converting your
war

name/ dealing

war,

genuinely in the inter¬

as a

Task
:

investment business in

Creek

own

has
are

the

Silas C. Coleman has been con¬
Battle

est of the veteran as a citizen and

same

Battle Creek.

are

Legion

Grand Rapids, Bay City and

his

admitted

nation,

membership and of its leadership.

kill

Eisenhower

acquainted with

ciation wth them of Silas C. Cole¬

ducting

General

World

second

Saratoga, where you will, see

Corporation,

First

stating that in an atomic war
It would take only one night to

that

No aggressor starts a war un¬
less he thinks he can win, and as

the

are

But
of a most
reception from the people

Detroit, has announced the asso¬

outside offices in New York, Chi¬

40,000,000 Americans.

World

and

proud of the Legion in
New York as in the Nation, of its

when

second

after

again seeing weak
impoverished
nations
at¬
tacked
by internal penetration
War

you

ects and become

BATTLE CREEK, MICH. —The

about

the

Universal Training

Now,

warfare

they finished' their training than
they did at the beg;nning.
Dr. J. R. Oppenheimer is quoted

finest; State-operated veterans
camp in America.' Many of
you .may also have time to see
the State Veterans Housing Proj¬

Head New Branch Office

any more

for none of these

war,

boys would know

rest

Security Bank
location as that
occupied by S. C. Coleman for the
past several years.
The First of
Michigan Corporation
now
has

in the future should

Department
of the American Legion.

Arcade, the

come

make

never

the New York State

useless in the kind of
Would

must

the
;

resident managers of their Battle

which

led

everywhere you go.
If you do travel through the
State, I hope that you will visit
beautiful Mt. McGregor, outside

Michigan in
Coleman

Worse yet, the training of
all these boys would be virtually
war

will

I cannot promise you

assume

can

cordial

Battle Greek;

man

(4)

City of New York

facilities

its

mistake

again.

that the fish will always bite.

would

fall asleep on
They would be called

job.

all

New York,

the power to alert the gov¬
ernment and the army and navy.
the

the

which
War.

magnificent forest preserves, trout
streams and lakes of the State of

have

They would

won

disposal and I also earnestly
hope that while you are here you
will linger long enough to visit
some
of the fine
beaches, the

tended to contradict the evidence

command.

twice

your

globe and* would have a special
squadron' of airplanes or space
ter figure is twice the amount of ships at their command for ob¬
the tax bill that President Truman servation purposes.
They would
yetoed. This would be a nice sum work very closely with the F.B.I.
for the Truman party political and with our foreign intelligence
machine but it would give little system butthey would be trained
protection to the American people. to take no man*s opinion when it
their

have

freedom.

am sure

and

newest

for the detection of possible enemy
attacks from any quarter of the

I
(3) Compulsory military, train¬
ing has never been a guaranty of at

sacrifices

and

Legion warned us against time
after time, year after year. It was

free peoples

weather,
enlarge the

(5) We can prevent sneak at¬
tacks,. Fifty thousand men belong¬

the

ike those which followed the first
World War.
In those years the

the

higher
asking for it. This is
known a.§ The Sleeping Brass.
are

—

conditions

con-

going

witnessing

will

put oyer such a law with the aid quired in any previous war. What probably be
of all sorts of newspaper, radio good will it do to force our boys
p
r. e
t t y
and magazine propaganda backed to undergo basic military training crowded.
We
by certain elements in the army
and some misinformed patriotic

are

<$>—

restau¬

AH 14 million people of our State are glad
From what I hear, the hotels are bulging
to be full. The taxis won't be quite enough to go

NEWTON J. ASPDEN

Telephone

ROBINSON

Rlttenhouse 6-8189

General Partners

into

OLIVE M. ASPDEN

Limited Partner

September 2, 1947

and unlisted stocks and bonds. Mr.

Mark H.

Coleman has been

asso¬

ciated with him since 1940

address

Governor

having
previously been in the securities

Dewey at the Convention of the
American Legion, New York City

business in Detroit since 1929.

Aug. 28, 1947.

.•

J. H.

W.T. KITCHEN
L.

MURPHY

GODIE

'•

Artkraft

Manufacturin g Corp.
.*•

>■

Current

Outdoor

establishing

Public

Industrial

Advertising

and

are
:

■:

-■'

•<

Teletype CG

KITCHEN
SO.

135

LA SALLE

CHICAGO 3,

AC.AUTN»®COMPANY
Incorporated

Dearborn ISO!
355

■

NEW YOEK

BOSTON

OMAHA

KANSAS CITY

SEPTEMBER 2,

MILWAUKEE

PHILADELPHIA
*

TELEPHONE STATE 4950
*

CHICAGO

CHICAGO 4
^ ,..4,,

'•

Municipal

CO.
STREET

ILL.

only

COIMSTOCK & CO.
231 S. La Salle
St,;;

STOCK EXCHANGE

■,

r;: v

brochure

illustrated
dealers

■

SUCCESSOR TO

Railroad

and /earnings
near ? records."

available to

YHPRUM8

KITCHEN

Utility

MEMBENS CHICAGO

Approximate price 2%
Descriptive

PARTNERSHIP

sales

SECURITIES

Manufacturer*, of
Maytag
Home
Freezers, Commercial
Beverage
&
Food
Refrigerators, Liquid Vending
and

FORMATION

THE

Limaf Ohio

COMMON STOCK

Machines
Signs. :

ANNOUNCE

INVESTMENT :

19477

MINNEAPOLIS

INDIANAPOLIS'

'J1

TELETYPE CG 28

THE

(912)

COMMERCIAL & FINANCIAL

CHRONICLE

Thursday, September 4,
1947

WUSm

Publicity Committee: Normrm
Stabler, A. Wilfred
-May, S
colm Forbes, J.
Mindell.

*,.«■_

Dealer-Broker Investment

Chairman

Tennessee Gas Transmission
This

Company

chance in title.
In 1946 deliveries
averaged about 260,000 MCF and

Under the

ization

half

and to

1947

288,000
MCF
(not
including
deliveries
made through the Big Inch
lines,
temporarily leased from the gov¬
ernment

—April
been

delays in getting pipe,
hopes to increase its
by the end of the year

to 400,000 and

600,000

Because

huge demand for
no

gas

transmission

the

extending to 1970.

become
owned

providing

deliveries

available.;

subsidiary,

for

nancing
has

been

Webster

the

in¬

Stone

was

capacity throughout
With the anticipated
expansion of opera¬

year).
in

remains

sumably

indefinite,

during

period.

pre¬

expansion

The stock is
currently

Corp.
and
White, Weld & Company, acting
the company's bankers.
$35,-

18-19V2, the

range

hank loans

Stock

shares
uary,

was

split

were

1946

Later

7-for-l.

and

puts

the

Son

Also

Co.—Memorandum

available

Eastern

—

and

Exchange.

calls

formerly

New York

—

City.

t
a

New York Stock

the

Broad

QUOTED

Power—Common
on

Co.—analysis—Loewi

request

Jackson & Curtis

Established 1879

Inc.

Mohawk

Circular

—

new

Street,

ica

Analysis — Hayden, Stone &
Co., 25 Broad Street, New York
4,
N.Y.
' •
7--V1

Gilbert J. Postley

Diebold

Incorporated

Recent

—

5, N. Y. 7

board

Also

available

are

for

Direct Wire to
Chicago

making

its

vast

industrial and

activities,"
Line

Legh

some

Railroad,
time

same

the

Sea¬

said

road's

dis¬

plans

further

aiding the develop¬
territory.*
Seaboard, he stated, is now
in the process of
carrying forward
a program of
improvement to its
properties and is buying new lo¬
'The

Secretary Harriman will
delegates at White

greet

comotives and

House Sept. 8.
The

some

International

Conference

which

Corp.;

Lawrence

ment;

Sterling

Lamson &

Portland

Ce¬

Motors; "Diebold;

Sessions Co.

meet

the

Inter-American

The

International

Conference;

Union

for

gation

The

Statistical

Insti¬

Joint

State
U.

the

S.;1 The

American

the

National

Committee;
tistical

The American
Association.

Sta¬

Also

American

National

Stuart Rice is Chairman of the
Joint

Arrangements Committee,
Henry Caulfield, Jr. acting
Secretary-Treasurer. Hospital¬

with
as

are

Company

analyses of

"B,"

Wellman

Engineering Co.* Tennessee Prod¬

ity

committees

function

York and points
of entry so that the visitors
may
not

ucts & Chemical.

will

Washington, New
only

assisted

but

enter¬

Graham-Paige
Memorandum
of

Motors

1956—A. M.
Co.,
Wall Street, New York
5, N. Y.

Howell Electric Motors—Memo
randum in the current
issue of the

"Adams Journal"—Adams &
Co.
105 West Adams
Street, Chicago
111.

two days of
sightseeing
meetings will open formerly
in Washington on
Monday, Sept.

the

with

luncheon

Central

Railroad

the

current

issue of "Railroad

Quotations"—Adams &Peck
Street, New York 5, N. Y

Metal

Thermit
York

Memoran¬
Hanseatic Cor¬
—

Broadway,

New

orandum for dealers
only—Adams

Co., 105 West
Chicago 3, 111.

Adams

Street

Prentiss-Wabers Products Co.—

Analysis—Adams

Co.,

231

the

Hotel

Shoreham and a reception at the
White House, where in the ab¬
sence of President
Truman, Secre¬

tary

Harriman

will

receive

the

guests.
The

New

York

Secretary of State

of the State of

gess; Pierre Bretey; Shelby
nelen

Dickinson; Martin
brugh;
Lucien
Hooper;

coaches,

-7

are

new

of 50 tons

top

all-steel

capacity each
such

cars,

are

delivered during the first part of
the year and are now in service,

Additions
line's

fleet

all

from

are

power

diesel-electric
type
1,500 horsepower road
locomotives
to
the

switching

3,000 horsepower diesel-

electrics

which

powerful

single-unit

tric

the

made

motive

the

mammoth

the

most

the

are

locomotives

liveries

diesel-elec¬
built.

ever

De¬

locomotives'

new

have commenced and
they are ex¬
pected to be completed within the

"Several

Bur¬

last

South

one

made

showed
of

the

during

that
sections

the

country most likely to enjoy
high level of activity in the
postwar years," Mr. Powell stated.
"Those predictions are material¬
izing and every indication points
a

continuing

along

Gains-

lines.

Helen

surveys

war

was

our

Davis;

hughes; Malcolm Forbes; J. FW
A. Wil¬
May; Joseph Mindell; Ragnar
Naess; Ernest
Oberhumer;
Joseph Pogue; Mrs. Byron Price;
L. H. Rothchild;
Henry Sanders;
Bradford Smith; Norman
Stabler,

Dewhurst; Royal Ryan;

Rufus Tucker.

included

tavern-observation

order

open

the

Chairman: Helen Slade.
Committee: W. Randolph

and

road's

Meteor

next seven months.

York; Grover Whalen.

fred

the

hauling coal and similar
commodities, as well as additional
closed top hoppers built for the
handling of phosphate rock. Spe¬
cially constructed cars for trans¬
porting bulk cement have been

Hospitality

Honorary Chairmen: Hon. Wil¬
liam O'Dwyer,
Mayor of the City
of New
York; Thomas J. Curran,
New

Silver

used for

After

Corp.

the debenture 4s
Kidder &

the

and

cars

and

tained.

service

-7-

Also
and

has accepted the Chairman¬

new passen¬

the lightweight

are

have

year

diners

Commerce, W. Averell Harri¬

the
Committee.

Motors

available

this

box

ship- of

auto¬

and the Silver Gomet. New
light¬
weight cars already received and
placed jn service in those trains

Secretary

man,

for

streamliners,

cars.

President Truman is
Honorary
Chairman and the U. S.
of

equipment

signed
Com¬

riding

new

all-room sleeping cars now under
construction1 and
especially de¬

Problems;

Government

smoother

Heading the list of
ger

Econometric

mittee is composed of representa¬
tives from The
Department of

sec¬

provide greater

signals is also being made
portions of the road.

over

Income

Society.
Arrangement

and

number of

matic

International
Scientific Investi¬

Population

of* track

qualities. Installation of

The

the

various

strength

The

Osgood

tions

tional organizations'/the Interna¬

Institute;

being placed in

following interna¬

Statistical

much

lineal yard, is being
points over the
system. Additional ballast is alsa
laid

Washington from Sept. 6 to 18 (in¬
clusive) is composed of represen¬
tatives

Heavier rail,
as
132

cars.

weighing

pounds per

Statistical
to

memoranda

Taylor Wharton Iron & Steel;
Purolator Products; Upson
Corp.;
United Artists; Vacuum
Concrete;
Fleetwood
Air. Flow;
Lanova
on

National Terminal Corp.—Mem-

NEW YORK
6, N. Y.

both

Air

closed

Statistical

The

Fairbanks Co.—Circular—Ward
& Co., 120
Broadway, New York
5, N. Y. ; .<
•' >'
'77':-

Bond

Co.

today. At the

tional

Company, 120 Broadway,

dum—New

road
more

Powell, Jr., President of the

—

poration,
120
York 5, N. Y.

BROADWAY,

strides in

ley Investing Co., Inc., 238 Gen¬
esee Street, Utica 2. N. Y.

Celanese Corporation of Amer¬

63 Wall

When Distributed

and

new

ment of its

Portland General Electric
Com.

develop¬

South

agricultural

Conference to Meet

funding 5s of 1955—Memorandum

fis, 1950

agricultural

equipment.

Cotton M11U

Committee consists of:

Portland Electric Power

and

by improvements

and installation of

Mohawk Val¬

Celanese Corporation of Amer¬
ica —- analytical
memorandum

Illinois

and

New York.

Light—Common
Electric—Common

Prospectus

trial

memoranda

Corp.—
Analysis—Seligman, Lubetkin &
Co., 41 Broad Street, New York 4.

Puget Sound Power &

are

Corporation

Indiana—Common

*Wisconsin Electric

says his Com¬
is preparing for its indus¬

pany

Street,

Int'l

New York

business in

Federal Water and
Gas—Common
Public Service Co. of

*Tucson Gas &

Spring

Southern Production Co.

an¬

of.J.

guaranteed

Offices

Hrm will be at

SOLD

South

"The

Graham-Paige

BOUCHT

Seaboard Air Line,

Co., 225 East Mason Street, Mil¬
waukee 2, Wis.

Street, New

shipments—

formation

members of the

were sold at
$18.65 in April. The
present amount is 2,100,000
shares.
The company has
recently reg-

647

Trane

N. Y.

Ward &

Opens

Durham,

Durham to transact

238,000

350,000

nounces

the

offered at $12 in Jan¬

Wall

Co.,

Utica &
Bird

year

partner ih Balson & Durham,

nancing) bought additional stock
$72 through exercising
rights
1945/

Jules

interest

ment

Billings & Spencer Co.—Memo¬
randum—Bond
& Goodwin,
In¬

Broadway, New York 4, N. Y.

Put & Call Business

«t

November,

bulletin—Giving earnings for first tute;

J. H0 Durham

Exchange

■

Legh R. Powell, Jr., President of

Sterling Electric Motors, Inc.—

Los Angeles 14, Calif.

six months and
indicating annual
return on basis
of

were

points

Advancing

Memorandum—Maxwell, Marshall

Street, Chicago 4, 111.

last year

20-15.

incurred. Hold¬
ers of the
original common stock
{which represented
private
fi¬

Manufacturing Corp.—

selling at

000,000 first 2%s due 1966 were
sold in April 1946
together with
$10,000,000 4.10% preferred
stock,
and during the
year $15,000,000

entertain¬

Sees South

Service

developments —
J. G
Vilas & Hickey, 49 Wall Street, Company — Memorandum
White & Company, Inc., 37 Wall
New York 5, N. Y. '
Street, New York 5, N. Y.
*
#
*

Colonial Mills—MemorandumEdward
A.
Purcell
&
Co., 50

approximating 22-12 and this

Securities

Corp.

the

.7
4

about

special

Shelby Davis will conduct
visi¬
tors through the
Exchange.

are
analyses on
Textile, Inc., anc

Stern

other

New York.

—

policy

instalment basis,
The financing

and

Trusi

available

Southwestern Public

Current

—

—Buckley
Bros.,
1420
Walnut
Street, Philadelphia 2, Pa.

$1.64

the final result.
No divi¬
dends have yet been paid on the
common stock
and the dividend

Com¬

the

affect

funds.

1947-8 it appears likely
earnings may reach or exceed
Laird, Bissell & Meeds, 120 Broad¬
the $3 level,
though rising costs way, New York
5, N. Y.
'
and FPC
regulatory policies may

;

handled

Developments

York 5,

tions

Tennessee Gas has done its fi¬
As it needed

100

that

September,
develop oil

and gas leases.

Week

La Salle

$134

substantial

wholly

Coast

pany, Was formed in
1946 to acquire and

Cable

Railroad

corporated, 63

the

facilities

shares)-..

share (suggesting an annual rate
of $2.66, since the line is
expected
to operate at

The principal

iary of Columbia Gas & Electric,
Hope Natural Gas, subsid¬
iary of Consolidated Natural Gas.
These sales are also under
longcontract,

Rome

Also

and illustrated bro¬
chure—Comstock & Co., 231 South

earned, and
in the first half of 1947
$1.33 per

and

crease

1946

Gas, subsid¬

term

Stern

Bank

N. Y.

company's capital structure
operations it is difficult to
appraise the exast earning power
in terms of the common stock.
In

customers at the other end of the
line are United Fuel

National

Certificates—List

Mortgage Co.

the

which the company has a contract

Public

—Amott, Baker & Co., Inc. 150
Broadway, New York 7, N. Y.

and

gas is purchased in Texas
Louisiana, principally from
Chicago
Corporation
with

Street, Chicago 4,

Co.—Analysis—C. E. Unterberg &
Co., 61 Broadway, New York 6

Descriptive

Because of the rapid changes in

load.

South La Salle

Illinois.

Artkraft

the

The
And

set-up the capital¬
approximately as

Total

there will be

Stocks—Circu¬

depressed values
in a rapidly expanding industry
—Laird, Bissell &
Meeds, 120

the

ments arranged for the
guests arean outdoor
gathering at the home
of Mr. Forbes at
Morristown, N J •
a dinner at the
New
School; Tours
of the New York Stock

—

(2,100,000

difficulty in disposing of the

increased

Common Stock

by the end of 1948

MCF.

will

Preferred Stock

the company

capacity

new

Millions
First Mtg. Bonds___w_
$75
Bank Loan
15

some

Insurance

discussing

provide construction funds.

follows:

during the period Dec. 2
30).
While there have

Fire
lar

offering in September

(Operations
in
1944,
delivering $40,000,000 first mortgage bonds
about 200,000 MCF per day of na¬ and
100,000 shares of preferred
tural gas.
In 1947 it was incor¬ stock.
Proceeds will be used to
porated. in Delaware with a slight retire a $7,500,000
temporary loan,

first

Among

Broadway, New York 5, N. Y.

7.
7
..."
'
The company was incorporated ♦>
Tennessee in 1940, and began istered for

the

was

United States.

May.

formed to construct and operate a pipeline
system which runs in almost a straight line from southern Texas to
West Virginia.
It is designed mainly to supplement the declining
supplies of natural gas from the Appalachian field, which for many
years served a substantial part of the northeastern area of the
company

Arrangem^f

Committee'

A. Wilfred

It is understood that the firms mentioned will be pleased
to send interested
parties the following literature:

/'-

Hotel

Committee: Royal
Ryan.
Chairman Advisory

Recommendations and Literature

new

and

sound
These

locomotives

freight

healthy

and
recent

growth

constructive

purchases

and

equipment,

passenger

together

with other parts of the broad im¬

provement program the Seaboard
now has under
way, will be im¬

portant factors in adequately tak¬
care of the present and future

ing

transportation needs of this pro¬
gressive area."

Volume 166

THE

Number 4626

COMMERCIAL

FINANCIAL

CHRONICLE

By RALPH C. BAKER

Bankers Association of America reports notwithstanding
Federal agencies continue to get out of the mortgage field,
while private interests expand their mortgage holdings. Increase of
mortgage debt expected to continue through year.

Mortgage

Vice-President, Amoti, Baker & Co., Inc.

increase,

Total mortgage

The holders of real estate bonds have
ments.
nent

debt of the country went up last year, reversing
and stood at $34,720,784,595 on Dec. 31,

For all of the past

America announced on<*
Since the 1946 trend is

ciation of

Aug. 31.
continuing this year,

addition

debt

the

and

the

decline

agencies

continued to

get out of the mortgage field at a
rapid rate while private interests

expanded their holdings. Federal
agencies
held
mortgages of

estate

the

30%

idea

that

near

construction costs, the demand for
on

market
some

construction should

new

thus assuring a good
for mortgage funds for

up¬

month

these

month

food

First Boston Offers
Pacific Finance Stock

$7,059,000,000, or 20% of the total
mortgage debt for 1946. Fraternal
societies and associations held less

$21.50

from

per

the

share.

sale

be added to the

The proceeds

the

estate

bonds

ran

from

alternatives

costs

decline

and

other

somewhat

whereby
will

items
rents

move

higher to a point where the rela¬
tionship will be more consistent.
It seems clear from any careful
and

the

bids on

followed

suite

estate picture that any

are today covering in¬
requirements, before depre¬
ciation, is 2.52.
With
earnings currently at a
level such as indicated above, it

it not difficult to understand why

is possible for so many build¬
ings to be reducing their bond is¬
sues
rapidly. In fact, within the
past year many corporations have
found it possible and expedient,
as
a result
of increased earnings
and improved financial positions
to arrange for whole or partial re¬
financing of existing debt through
institutional

loans

of interest.

lower

rates

Since real estate bonds

An interesting characteristic of
are cur¬
approximately the real estate bond market is that
more
than recovered their June three times their pre-war level, it many of the presently outstanding
is logical to wonder whether so reorganized issues carry shares of
1946 level and there is consider¬
substantial a price rise has not ownership which, as
a
general
able evidence that there is justi¬
reduced the current yield of these rule, trade with the bonds as a
fication for further price strength¬
This
stock
interest
has
securities to a point where they unit.
ening.
cease to
have attraction. For an caused some units to be priced
Real estate bond prices in Au¬
well above the 100 par value of
answer we selected a representa¬
gust reached a new high of $757
tive list of 25 of the most active the original issues and explains, in
per $1,000 bond, according to the
New York City issues and found part, why so many discriminating
Amott-Baker Price Averages. The
this group
to be selling at an investors, in search of income as
previous high, as indicated above,
average price of 73 V4 and yielding well as capital growth possibili¬
was
recorded on June 30, 1946
currently approximately 5.7% on ties, have become buyers of real
when the Averages stood at $753.

will

company's work¬

ing capital stock to be used pri¬
marily in the acquiring of instal¬
ment

two

present level. Per¬
probable that there
compromise between

holders of real estate securities.

average,

nearly so severe and it was
relatively short-lived; And now,
real estate security prices have

>.The First Boston Corp. heads an
Savings and loan associations underwriting group which is of¬
thus have replaced the life in¬ fering to the public today (Sept.
surance companies as the largest
4) 150,000 shares of common stock
single class of institutional in¬ of Pacific Finance Corp. of Calif,
Mortgage portfolios of life inu r a n c e
companies
totalled

until

at
approximate¬

1946,

September,

real

21%.

vestor.

Baker

yield

Moreover, it is
in spite of the

terest

not

the

9.46%.

properties

will

but the extent of the decline was

$8,000,000,000 or 23%
and savings and loan
associations third with $7,200,000,-

rise from their

ly three times their prewar level.
When stock prices broke sharply

mortgage

second with

things is bound to occur:

intelligent study of the real
adidtional
gains in rent must add millions of
dollars to the gross revenues and
earnings of existing properties.
This
in
turn
spells
increased
profits which should
benefit

Ralph

come."

time to

to 115 and

3.98%

haps it is

ruption

real

will fall sharply
future.

One

prevail.

significant that
high yield and relatively moderate
items must break sharply in the price level
of these bonds, the
foreseeable future or rents must average number of times these

after

"Second,
unless
a
builders'
develops because of high

of the total,

the

two

will

in price of from

range

Either the cost of food and other

ward

strike

companies and other lenders were

000

to how much longer

moved

shown renewed

values

difference

had

compris¬
ing 200 issues,

ages,

selling,

increase,

Aver¬

were

class of lenders, banks are
supplying most of the mortgage
money. Their holdings on Dec. 31
Individuals,

Bond

Price

issues

$10,268,962,000,

Realty

these

loans

total.

30, 1946,

Amott-Baker

present interest rate level, and

other 94%.

the

this

without inter¬

rejection

were

jure doubt

four

This activity during the past year
indicates
an
acceptance of the

$1,968,099,550 on Dec. 31 or 18%
Private lend¬
ers' holdings stood at $32,752,685,-.
045 a gain of 14.5%. Of total U. S.
mortgages, government . agencies
hold 6% and private lenders the

less than a year ago.

sues

June

increased
of

have

—

ending

the mortgage market.

reason

mortgage bonds have occupied

of these years'

Asso¬

interest

good

end there is every reason to con¬

through

13.4%,

companies,

to feel content about their invest¬
a preemi¬
yield and capital gain are concerned.
The record

and

years

will show that$>

federal
another rise
holdings, the annual MBA survey
in mortgage debt in 1947 can be
noted two other significant trends.
expected. The study is the only
one
made in the country of the
"First, private investors, parti¬
total U. S. mortgage debt.
cularly individuals and mortgage

Federal

five

position in the market insofar

trend of recent years,

1946, as against $30,417,975,387 a year earlier, an increase of
according to the annual compilation of the Mortgage Bankers

Real Estate Bonds Well Above Prewar Level U

Mortgage Debt Rising Shaiply

the

(913)

obligations and receivables.

The August advance moved

the

rently .selling

such

average

price. These 25 is¬

estate

securities.

Averages ahead 0.6% and marked
the third consecutive month in
which

The

real

estate

worked

have

current

security prices

price

higher
levels.
represents a

Full Building Production Ahead

By MORGAN L. FITCH
The company, incorporated in
recovery of 6.2% from the law of
i President, National Association of Real Estate Boards
Delaware in 1931, as the successor
$709 to which the market declined
agencies reduced their
to a California corporation organ¬ between June 30, 1946 and Sept.
Only a very few months ago our entire system of home produc¬
holdings in urban and farm mort¬
ized in 1920, ranks as the fifth
tion was in the firm grip of government planners. They planned what
30, 1946.
gages, $432,258,741
during 1946.
The August price rise was on a
they
called<$>
HOLC continued its liquidation largest automobile instalment fi¬
nance
"abundance" manded lower
prices
for
new
company
in the United relatively broad front with no
and alone was responsible for al¬
States and the largest such unit
and got scar¬ houses,
but prices climbed on.
special class of issues receiving
most 50%
of this decline.
The
on the Pacific Coast. Directly and
city. They set Now, as peak volume building
particular favor. In the classifica¬
RFC Mortgage Company and the
ambitious rolls ahead, the bulk of produc¬
Federal National
Mortgage As¬ through subsidiaries the company tion by type of property the aver¬
operates in California, Oregon, ages show increases of 1.1% for
goals for home tion is going into the moderate
sociation reduced their holdings
Washington, Idaho, Utah, Arizona, 36 apartment building issues, 1%
production, priced market range.
over $27,000,000.
Texas and Oklahoma.
We still hear the advocates of
but produced
for 28 hotel issues, 0.7% for 87
In the field of farm mortgages,
housebuilding com¬
mostly
regu-^ government
building issues and 0.6%
For the six months ended June office
the Federal Land Banks' holdings
1 a t i o n s, re- plain that private industry builds
for 26 apartment hotel issues.
30, 1947, the volume of loans and
declined approximately $102,000,stric tions, primarily for the well-to-do. This
In the classification by
cities
discounts acquired was $113,464,000 and those of the Federal Farm
orders, rul¬ was never true, and taday it's
the primary group comprising 127
496 with $64,626,052 outstanding
Mortgage Corporation about $92,ings, interpre¬ being drowned out by the govern¬
New York City issues increased in
at the end of that period, these
ment's own figures. The median
000,000 during 1946. The Farmers
tations.
value 0.8% while gains of 1.1%,
figures comparing with $57,017,Home
Administration
reported
Gradually value of homes being purchased
0.6% and 0.4% were recorded for
597 and
$33,380,848 respectively
these con¬ under FHA mortgage
mortgage
holdings
of
slightly
insurance
11
Boston, 26 Philadelphia, and
for the six months ended June 30,
more than $6,000,000, due in part
trollers of is under $8,000. Most of the fami¬
12 Pittsburgh issues, respectively.
1946, Net income was $395,546 for
to its assimilation of the assets of
lies who are buying these homes
Morgan L. Fitch
p rod uction
For the year to date real estate
the six months ended June 30,
the Farm Security Administration.
have
been have annual incomes of less than
bond
prices have increased by
1947, against $130,952 for the cor¬
3.7% but all classes of bonds have discarded along with their dull- $3,500. Each week more houses
The compilation shows that the responding period of 1946.
Earn¬
witted restrictions and red tape. priced under $6,000 are offered
large volume of mortgage financ¬ ings per share on the common not shared equally in the advance.
For
example,
office
building Now at last homebuilding is free, for sale in the real estate ads.
ing done by private institutional stock based on the average shares
higher, and we are finally getting the Builders are begining thousands
lenders during 1946 not only made outstanding during such periods bonds are selling 5.3%
results
that. everyone
wanted of new houses that will be offered
amounted to.,$1.06 and 24 cents hotel issues are up 3.3%, apart¬
up for the decline in the holdings
for sale with down payments of
ment hotel bonds have made a while we floundered under Washof federal agencies but caused the respectively.
only a few hundred dollars and
gain of 3.1% and apartment build¬ ton-directed programs.
mortgage debt to increase sub¬
Giving effect to this financing ing issues have advanced 1.3%.
A year ago the controllers called modest monthly carrying charges.
stantially for the first time in sev¬
the company will have outstand¬
We are beginning to produce
In New York City, where rent for high-volume production, while
eral years.
ing 460,000 shares of common control is probably tighter than holding tight to their restrictions, ourselves into a condition of hous¬
Private mortgage holdings in- stock.
Also outstanding are 37,- in
and they got only a trickle. Now ing plenty
on the plan of free
any other area throughout the
icreased by approximately $4,300,- 000 shares of preferred stock and
country, it is not difficult to find without this kind of government building under competition. This
000,000 during 1946. The savings $6,000,000
of
funded
debt,
A many properties producing the "planning" we are getting the plan has given us housing sur¬
and
loan
association
made the quarterly dividend of 35 cents per
highest gross income in more than highest rate of homebuilding we pluses in the past. It still produces
greatest
gain,
increasing their share on the common stock was a decade. A recent survey of the have had in 20 years and daily for Americans more housing, bet¬
mortgage
holdings
more
than paid Sept. 1.
housing,
and
more
home
apartment building situation approach a volume that will break ter
32.1% over the 1945 level. Com¬
ownership than exist anywhere
shows that a large percentage of all records in history.
The prospectus states that the
mercial
banks
increased
their
else on earth.
the tenants who
occupy
apart¬
A
year
ago
bureaucrats decompany
will make application
mortgage portfolios by 22%, while
ments
in
the
larger buildings
for listing of the common stock
holdings of mutual savings banks
situated in the better residential ACTIVE MARKETS
on the New York Stock Exchange
increased
9.5%.
Life insurance
areas
have signed up — or are
within six months after the de¬
Amott, Baker & Go.
companies increased the value of
INCORPORATED
about to — for the voluntary 15%
livery date of the stock.
It is
50
their mortgage portfolios during
increase. >
the- past year by 7%. Fraternal presently listed on the Los An¬
Bonds and New Common
President Truman's Economic
societies
and
associations
de¬ geles Stock Exchange.
Report, released in July shows
Wholesaler and Retailer of
creased their mortgage holdings
than

1%.

Federal

BROADWAY

up only
1935-1939
average whereas food costs are up
90% and the total of all items of
living expense has advanced about
57%. Consequently, as compared
with pre-war standards, rent rela¬
tively is probably the cheapest
item in the average American's
budget today. This wide differ¬
ence between rent and other liv¬
that

by 2%.

"Others," which includes mort¬
gage companies and individuals
primarily, showed one of the most
significant increases among pri¬
vate lenders.

gages held by

Continues in Inv. Business
CHARLESTON, S. C. —John C.
has

offices

The value of mort¬

Townsend

this group increased

63 Broad Street to continue in the

$1,200,000,000 during 1946, which investment
almost

about

John C. Townsend

makes up

for the $1,600,-

000,000 decline in 1945.

formerly

Townsend.

opened

business.

was

partner in Silcox and

rents

10%

have

above

ing costs is an

gone

the

unusual condition

80 JOHN ST.
4

1950

Investment Securities
Our

Trading

Department

specializes in real estate bonds

Bought—Sold—Quoiod

and

stocks, title company and

bank participation

SIEGEL & CO.
89 Broadway, N.

Y. 9

Teletype NY

Dlgby 4-2870
1-1948

150 BROADWAY

Boston

certificates.

NEW YORK 7, N.

Philadelphia

(914)

THE

Bird & Son, Inc.
Eastern

Trustee Offers New

■t

New

Philadelphia
Los Angeles Stock Exchanges
Also Member of
New York Curb Exchange

1420

York,

Wire System

and

will

held

The

between
Los

raised when hearings are
the amendments.
Trustee

tention

Angeles

proposed

i.e.,

recommends

the

$10,000,000

to them

the

bonds,

standing

old

which

disturbed.

Stocks
Philadelphia Transportation Co.
2039, Pfd. & Common

Philadelphia %

Nno York Phones
HAnover 2-2280

257

WHitehall 4-2400

Botany Mills

tribution, the Trustee
formula

values

new

has followed

employed' in

nor

$11,000,000
and

the

the equity

new

some

rolling

equipment purchased

stock
the

over

last 10 years.

Empire Southern Gas

Pittsburgh Rys. Co.

cover

ties

and

all

Stock Exchange Bldg. Phila. 2
Telephone
Teletype

has

removal

expenses and
000 for new

reserve of

The

remaining
to

is stated

Ben Franklin Hotel Com.

The

use

•

and

following amendment:

Phila. Transportation Issues

Riverside Metal Co. Com.
East Penna. RR.

Samuel K. Phillips & Co.
Exchange

Packard Bldg., Philadelphia 2
Teletype
'
N. Y. Phone

substantial
made

nies

lessor

claims.

1421

ways Co. to the extent of

...

com¬

Philadelphia

Trust

assets in respect to
in compliance

„...

sums

Besides

its

ownership

of. all

the

York—HAnover 2-9369
System Teletype—PH 299

Bell

Phila. Elec. Co.
Common

*123 Public

•Roberts & Mander
Common;
•Atlantic City Elec. Co.
Com.

PHILADELPHIA BONDS

Price-Earnings

Ratios and Yields

Bought—Sold—Quoted

E. H. Rollins & Sons

PEnnypacker 5-7330

York

Boston
San

Francisco

Chicago

AllentoWn

Pittsburgh

cash

and

;

$62,000,000, and
as

has

gen¬

excessive.

However, the capitalization

the

proposed

new

company is
approximately half this

only

amount, and, by the same yard¬
stick, adequate depreciation
than
of

certainly

half

the

add

$2,055,245.78

in effect. This

transposition

approximately

$1,000,000

another

$3.30

per

earnings to the proposed

new common.

Now what is the market value
of

assigned it

fronted with the
lem

on.

file

con¬

with

the

their

own

extending
figures accordingly. *" if

the

Markets Are Erratic

Although

Direct Wire

the

Trustee's

pro¬

submitted, are far from
consummation,
are
certain > to
meet well-organized
objection and
may, indeed, be entirely rejected,
as

their publication has caused mar¬
ket flurries in
many of the secu¬
rity issues involved. Individual
issues
receiving
comparatively

favorable
are

treatment
in

good

issues
have

prices.

under

:the

demand. qt ad¬
Bids
for
these

severely

"down-graded"
lowered, although
appear
willing to "sit

been

holders

tight" and: await

developments.

favorable

*•

SEC to Sit In

;

Last December the Securities &

Exchange Commission

entered an

order

against Philadelphia Com¬
pany to show cause why it should
not simplify its
capital structure,
further
integrate
its
operating

subsidiaries,

or,

liquidate and
phia

in the alternative,

dissolve.

Company,

its

Philadel¬
response,

proposed its own plan for simpli¬
fication which included a strong
plea for retention-of Pittsburgh

Railways Co. system. Prompt, fair
and

equitable

reorganization* of

railways properties

promised.

Issues

The SEC

was
r

thereupon amended

of its own rules permitting
it to supervise*
amend, revise or
one

to Neu) York

City

•

CHAPLIN

and

somewhat academic.
the
P Ian,
as

proposal

interesting prob¬

arriving

vancing

are

have

price of three times
earnings—$10 to $20 per share.
More
optimistic
analysts' esti¬
mates range as
high as $40 per
share. Security holders are con¬

Plan

their holdings.

Western Pennsylvania

and

COMPANY

rewrite any reorganization
plan
for the

railways system.

—

120

Members

BROADWAY

N. Y. Stock
Exch.
Pitts. Stock Exch.
New York Curb
Exch. (Assoc.)
lOtb Floor,
Peoples Bk. Bldg.
61 Broadway

NEW YORK 5, N.
Y.
"

the street

Incorporated

PHILADELPHIA 9, PA.

New

ties

erally been conceded

company

Trading Department Active

STROUD & COMPANY

PEnnypacker 5-0100
*

capitalizable value of the
proper¬

posals,

allotted

1528 Walnut St.,
Philadelphia 2

agree¬
ment in 1926 and has
remained in
ever since. It
is. based on a

effect

•

Request

123 SO. BROAD
STREET

new

ment.
Until or unless it
is re¬
written or
superseded, it provides
the only
available basis for
comparative computations.
Since
the Trustee's proposals embrace
the distribution of
cash, general

)

Incorporated

public

subordination is finally and
judicially: determined, the present

♦Offered only by
prospectus
.

the

Utility Common Stocks.

Copies

Penn¬

amended, represents the only

Valuation and Appraisal

New Common Stock
1
Until the
all-important question

crete

RAILROAD EQUIPMENT
CERTIFICATES

•Nor. Ind. Pub. Serv.
Com.
Harshaw Chem. Co.
Common

deal¬

Federal Court, and, as
such, pro¬
vides the
only basic framework
for; further
revision, or amend¬

CITY OF

act

The

any

Valuation and
Appraisal

com¬

equa

with

are

dividends

proposals

5-4646

New

connected with

stances,

subordination*! of

the

depreciation charge
$2,055,245.78. This purely arbi¬
trary figure was adopted
by

four

securities of less value than
the
unpaid, accumulated interest or

*■

his

of
minority publicly held secu
rity owners, who in some in¬

Philadelphia Company claims.
Therefore, in
V
t
s m m j
J
Pf°~
...

retained

this point which is cer¬
tain to be the
local point of
spirited resistance on the
part

outstanding securities

was

allocation

entire

limitation

has

pany's fixed

Army of the

cash and
securities.

all

improper relations between Phila¬
delphia Company and - its sub¬
sidiary which would warrant

improvement,

prior

underwriters

participation

system. In a pre¬
report, recently made j in
compliance with a Court
order,
the Trustee found no
evidence of

however,

Philadelphia Stock

firm will

new

and

the

Pittsburgh Rys. Co. preferred and
common
stocks,
Philadelphia
Company owns approximately

Pittsburgh

posals, the Trustee accords Phila
delphia Company full and

Subordination Disregarded

and

Phillips

constituting
income, ; the

annual

Trustee

conclusions

paid out

with its guaranties.

Telephones:

Philadelphia—PEnnypacker

average

should

sylvania1; and
General
Marke
Municipal Bonds, Corporate secu¬
rities, and as members of the
Philadelphia Stock Exchange.

tS^3' ^

•

Building

Prior to his

earning power

share."

Trust

ers

^substitution Philadelphia Company is granted full
participation in the distribution of

allotted

PHILADELPHIA 9

specialist

average
per

sources

Dolphin & Co.
Fidelity

■

service in the

The

taxes,

earnings,
estimated

a
transportation company stock
Department
of -the ;with a book value
of $55 per
Pennsylvania Company for Bank¬ share, earning $3.30 (or
$6.60) per
ing & Trusts.
share? Wall Street

the

Available Publications

with of¬

as-

United States

bond interest and rentals
paid.'
u

share. Tn

Here, however, crops up
another
the alleged
"inequalities" at-

would

Exchange

subrogated to the

the

common

per

estimated
"Based on

ributed to the
Trustee's methods
of calculation. In
arriving at his
figure of $1,500,000 as

now

years

panies against their respective
lessees and the
Pittsburgh Rail¬

that

Co.

Haverford Township.

Nevertheless,
i

Chestnut Street has

member of the

making

guaranteed

new

annual

connection
with
Schmertz & Robinson.

Com¬

the

$3.30

Mr. Aspden has been associated
with Mr. Robinson in their
former

companies

Philadelphia

en¬

paid

rights

result
many of the
underlying
companies find that
sums

leases,

pany has been

extensions, intercompany
claims
?nd investments. The net

Pennsylvania
and New Jersey
Municipal Bonds

previously with r: the Phila¬
delphia office of Guaranty Com¬
pany of New York. His residence

vious

property

fices

Robinson

and

distribution* Philadelphia Com¬

charges
have
been
against the several
dbmpa-

for

the

their

pany

"Each of

-instances,

municipal financing.

performance

the

assigned to

64%

many

of,

made

was

I
E.

Philadelphia

payment

the component
companies of the
system, except Pittsburgh Motor
Coach
Company, is awarded a
share of the funds
for the use
and
occupancy of the property
which contributed
to the pro¬
duction of
j income
during the
Trusteeship. The share of each
component company in the
fund
is determined
by the use of the
same
method as was
adopted
for
determining shares in the
pooled assets of the

COrtlandt 7-6814

In¬

accrued under the provisions of
such
leases. As each

Railways Company."

Keystone Com.

Phila. Warwick Com.

Oliver

certain lessors the
taxes, bond
interest and rentals which had

occupancy

Mount

In respect to payments made:

dorsed

component

$14,260,000.

Trustee states:

guaranty

aside

acquired by the
against any of the
companies or against

"After May 10,1938, Philadel¬
phia Company, pursuant to its

$2,500,-

balance
the

for

says,.

the

sheet, as of
1946, indicates a
book

31,

have

been announced.

the

construction.

extinguish' all

facilities proposed

companies for

375

set

value

Trustee's

balance

income of $1,500,000, the common stock
would

with
by connection
Phillips,
Philadelphia Company after May Schmertz &
Robinson, he was as10, 1938, pursuant to its guaranties sociated
w i t h
A
Webster
on
leases, the Trustee proposes Dougherty & Co. for twelve
years

abandoned,* reorganization

distributed

also

Guaranteed Issues

principal claims of creditors
entitled to priority under
the Six
Months' Rule, Tort
Creditors, cost

Philadelphia Stock

the
v

share. The

per

forma

General partners are Ellwood S.
Co., Pittsburgh, Canonsburg & Washington "Ry. Co. and Robinson, formerly a
partner of
Washington and Canonsburg Ry. Phillips, Schmertz &
Robinson,
Co. be rejected'and that the
op¬ Newton J. Aspden, with Olive M.
erating agreement of West Penn. Aspden, a limited
partner.
Rys. Co. be affirmed.
Mr. Robinson is well known
in

pay

Byllesby & Company

Members

arT

contemplates the

approximately $55

cline Rys.

liabili¬
of

$67

Dec.

Aspden, Robinson

Cash

indebtedness,

pro

agreements

estimated to be sufficient to

sums

Cement

PHILADELPHIA OFFICE

Hotel

to
of

value

stock

mon

company,

obligations

Trustees.

Warner Company

approx

attempting

is¬
of 303,000
shares of com¬
with a stated

suance

component
the new company itself. It is
pro¬
posed
that
leases
or
operating

to $23,149,315. Against
this,
George has made deductions

Mr.

estimates

common.

average

properties

original plan. No consideration is
given to any increase in
property

ing

Empire Steel Co.

RIttenhouse 6-3717

can

market

The Plan

un¬

outstanding

1946 annual
report shows
cash and government
securities in
the hands of the
Trustees amount¬

American Box Board

H. M.

new

the

respect

terminated '-as

The

Nazareth

praise

not available for dis¬

are

ob¬

trust

are

\ Total

Distribution

Sterling Motor Truck

firm

further rights and liabilities which
could
be
asserted
against
the

arriving at his proposed dis¬

the

;

H.N.NASH&CO.
Locust 7-1477

investment

tercompany contracts shall be

general

new

imately $31,676,000.
In

Teletype PH

the

The Trustee proposes that, upon
confirmation of the Plan, all in¬

plan,

capitalization would be approx¬

Chestnut Street,

ratios,

imated without

Intercompany Contracts Cancelled

303,000 shares

equipment

ligations

Bank & Insurance

Phila. Phone

PHILADELPHIA, PA.—Forma¬
tion

and

ultimate value

value

of new common with a stated
value of $67 per share plus out¬

Philadelphia

1421

tribution to their security holders.

re¬

capitalization

under

mortgage

3-6s

amounts

Is Formed in Phila.

Pittsburgh Railways Plan

New York
Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
Private

mortgage bonds and new
common
stock, albeit in highly
disputable

Owners of the publicly held bonds and stocks of the
underlying
companies have been quick to differ with the trustee's method ot
allocating cash and securities of the proposed new company and it is
certain that vociferous objections'o
—

Walnut Street, Philadelphia 2

Philadelphia, New York and

-Thursday,- September 4,
1947

Aspden, Robinson, Go.

Aug. 7, but not distributed until last week, W. D. George,
trustee, has submitted his proposed amendments to the 1942 Plan
of Reorganization for
Pittsburgh Railways Co.
•
'

BUCKLEY BROTHERS
If embers

FINANCIAL .CHRONICLE

Dated

Request

Pennsylvania Bievities

Corporation

Southern Production Co.
Data

COMMERCIAL

REctor 2-6528-29'

Lancaster

•

PITTSBURGH 22, PA.
Grant 3900

Scranton

Bell

NEW YORK, N.T.

Bowling Green 9-3987
System Teletype—PQ 473 *

Public

security

holders

derive

considerable comfort from the fact
that the governmental

body stands
ready to safeguard its interests.
•'

Fare Increases Impend
was

announced last week that

THE

Numbef 4626

166

Volume

company

for Pittsburgh Railways
would petition the Pennsyl¬
vania Utility Commission for an
inci-ease of fares. The petition will
State that the street railway sys-

trustees

Co.;

000.

COMMERCIAL

Jeannette

Broad

Glass

PITTSBURGH

—

Omits

Locust

CHRONICLE

(915)

stockholders

by the sale
Building,

Sts., Philadel¬

phia, to the Broad-Locust Corp.,

(

will
be
given the
right to subscribe. Proceeds will
be used to pay off bank loans and
increase working capital.

subsidiary of General Realty &

dividend

last week

of the 20-story Mitten

into cash

$245,-

approximately

■

FINANCIAL

*
,

•'

according to

during July,

cycles

the Commission's monthly report.

364,648
vehicles
superhighway during
the month, compared with 285,125
in July, 1946. Revenues for the
mcnth amounted to $497,992.

total

traveled the

Investment Corp., for $1,875,000.
teni has been granted no increase actipn was taken by directors of
; Duquesne Li^ht
Postpones
Philadelphia Transportation Co.,
in fares in 20 years and that op¬ Jeannette Glass Co. at the August
In order not to Conflict with
occupying 11 floors of the build¬
erating costs, including wage in¬ meeting. Previous dividends have
competitive bidding for $60,000,;
ing, will remain as a tenant.
creases, have advanced more than been paid at the rate of 50 cents
With Edgerton, Wykoff Co.
000 Detroit Edison bonds sched¬
50% in late years. On the basis of per quarter. Sales have been run¬
Special to Ths Financial chronicus
uled for Sept, 9, Duquesne Light
similar representations, the Com¬ ning at about 50% of last year.
Co. has postponed its offering of
LOS ANGELES, CALIF. — F.
mission recently granted fare in¬ For the seven months ended
Joy Manufacturing Co.
July
$75,000,000 new issue originally Dwight Leslie has become associ¬
PITTSBURGH
creases ; to Philadelphia . Trans¬ 31, net after taxes declined to
"In order to
ated
with
set for the same date.
Edgerton, Wykoff &
portation Co.
$204,000, less than $1 per share, provide flexible and suitable
>is
s!<
*
Co.,
618
South
Spring Street,
—

compared

with .a net profit of
$765,000, or about $2.72 a share in
1946. Continued sales at about the

JNew Cars Sought

Pittsburgh Railways Co. have
asked SEC for
permission to issue $1,750,000
to $2,500,000 car trust certifi¬
cates to defray the cost of 100
new
P.C.C.-type
streamlined
trolley cars. If granted, this will
bring the system's fleet of new
cars to 656, the largest, numeri¬
cally and
percentage-wise, of
any street railway system in the
of

Trustees

current

Unfilled

for

means

present

its

financing securely
future business

and

re¬

the

expectation.

quirements," Joy Manufacturing
Co., in a letter to stockholders,

orders

are

reported

announced its

rate

$545,000.

proposal to increase

Commonwealth

The

Pennsylvania
$50,000,000
pose

intends

members of the Los

various pur¬

new

Philip Williams Opens

bonds for sale on Sept. 23.

authorized capital stock from 1 to

million

*
i

mon

Transit Investment Corp.

Turnpike Traffic

and 100,000 shares of $100 par

preferred. The first step contem¬

A substantial asset of Transit

plated

Investment Corp. was converted

issuance

the

preferred

40,000
which

CHARLOTTE, N. C.—Philip T.
is engaging in a secu¬
rities business from offices at 2201
Radcliffe Avenue.
Mr. Williams

Williams

com¬

par

Angeles Stock

Exchange.

offer

Traffic

Pennsylvania

the

Turnpike showed further gains in
all classifications except motor¬

was

previously

with

the

country.

Philadelphia Exchange Seeks

Listings

Governors of the

The Board of

Philadelphia Stock Exchange has

appointed a Special Committee on
Fiscal Agencies to develop ways
and
means
of obtaining appro¬
priate primary listings from qual¬
companies in the Exchange
area. Chairman is A. L. Hallstrom,
former President of the Chamber
ified

bf Commerce and Board of Trade.
Other members

James A. G.

are:

Campbell, Jr., member of the Ex¬
change; A. Alison Scully, VicePresident,
Corn
Exchange Na¬
tional Bank & Trust Co.; M. S.
Altemose, Vice-President, Fidelity

Philadelphia Trust
Co.;
H. L.
"Walters, Corporate Trust Officer,
Girard Trust Co.; H. L. Hayman,
Assistant
Secretary,
corporate
trust

department, Land Title Bank
Co.; F. C. Fiechter, Jr.,
Corporate Trust Officer, Penna.
Co.
for
Banking & Trusts; H.
Townsend Bengardt, Trust Officer,
&

Trust

As¬

Russell,

Malcolm

Trust. Co.

Bank

National

Tradesmen's

Serving the Nation's
Fastest-Growing Market

sistant Secretary, Provident Trust

Co.; William Lange, Trust Officer,
First National Bank, Archibald De

B.'i Johnson, Corporate Trust Ofiicer, Philadelphia National Bank.

j Samuel

K. Phillips, Chairman

Admissions,
over 450
Issues with trading
privileges
on
the local Exchange, 201 of

of the Committee on

there

that

states

are

"Southern

registered odd-lot
<fcalers. About 50% of the Ex¬
which

have

BACK in 1914, when steel roofing was some¬

directed
to substantial tax savings avail¬
is

Attention

amounts.

able in respect to
ecuted locally
in

COMPANY

Georgia,

Savannah,

roofing.

•

small

began

business

ing and

simple toggle press and

and siding,

foot-powered shears, the
made their product with

With

their

operating revenues
for the first half
«of 1947, the best of any half year
in the company's history, it is
likely that the full dividend will
f)e paid on the 32,320 shares of $7

tion and eight

understood that

•completion

building

and

drums,

cups

1946.

that

used in

industry completely to

and aprons

metal

S. C.,
Ga.

house, the Com¬

million rural and

property-owning families in 13 south¬

states.

plants- are

per

' •-

V;;

is in contact with over a

eastern

cent of all
used by turpentine and

furnishes 70

branch warehouses.
■■

leading Southern mail order

small town

the Company succeeded

•

warehouses

Sales

located at

and

branch

Raleigh, N, C., Columbia,

Nashville, Tenn., Ilattiesburg, Miss., Albany,

and Orlando,

Fla. Net sales for 1947 are ex¬

pected to reach $18,000,000.00.

in this country.

Net profits for
over

Another

to $2,618,094, equiva¬
lent, to $38.31 a share compared
$13.67

development of steel con¬

the wooden barrels then

today

rosin producers

ago

balf, of

and all types of roofing

company's

the

program.

the first half increased 44%
year

the

buildings and aluminum roof¬

It distributes building products,

pending

share,

converting

drums,

preferred .arrearages which aggre-

$55.62 ,per

tainers to replace

plan has been

the naval stores industry,

agreed up,on for liquidation of the

Avith

it on.

_•

pany

Turning

However, jt, is

preferred, stock.

hands, sold it, helped put

gross

$63,478,512

fafe

own

expanding

vigorously

through a south-wide dealer organiza¬

'■
i

Curtis Publishing Company

now

including paint, insulation,

equipped with a

founders of the/Company

siding.

and sale of aluminum metal fram¬

ing for homes and

and sale of sheet metal

building

States"

♦he manufacture

IRON

STATES

small mail order house

devoted to the manufacture

orders ex¬
the many

Issues dually listed.

SOUTHERN

new,

ROOFING

round

volume

change

thing

Southern
ern

advertisement in the series by
industrial developments.

industries,

share in the first
Operations of the

ready

featuring
South¬
supplying others with capital funds.

Equitable Securities Corporation

Equitable has helped to finance many

its part in

company are reflecting increases
in 'circulation and higher adver¬

tising rates.

*' '

' '
NEW

NASHVILLE

•>.Hajoca Corporation
Offered

record Aug. 29,
scribe

rights to

additional

Hajoca Corp.

ratio

one

per
share

"Will

than

be taken

up,

HARTFORD

BIRMINGHAM

GREENSBORO

CHATTANOOGA

NEW ORLEANS

pur¬

share in the
for each

7,000

yielding the

sub¬

shares held/ It is expected that

slightly^ less

will ex¬

pire Oct. 1. Rights are to

chase at $35

YORK

MEMPHIS

KNOXVILLE

common

stockholders

PROWNLEE O. CURREY, PHE8IPINT
322 UNION

STREET, NASHVILLE 3, TENN.

First

Securities Corporation of Durham.

TWO WAIL STREET,

NEW YORK S, N. Y.

12-

(916)
ond half comparisons should bet¬
ter those of the first half."

Bank and Insurance Stocks

Though

both

these

investors'

services agree as to the favorable

prospects for bank earnings, they
do not see eye to eye on selec¬
tions. Moody's current preferences
are: Bankers Trust, Central Han¬
This Week — Bank Stocks
over, Commercial National, Corn
Despite factors in the banking situation which favorably affect
By CARLISLE BARGERON
Exchange, Manufacturers Trust,
prospective gross and net earnings of banks, the bank stock market
LOS
National City and Public National.
ANGELES, CALIF.—In Los Angeles you
shows little sign of awareness.
True, it did perk up a little for
see, perhaps in
Standard and Poor's preferences greater focus than
any other place in the country, one of
the reasons
£ while after July 2, when the Federal Reserve "unpegged" the rate are:
Chase, Manufacturers and why the taxpayers are overburdened.
;on Treasury bills and announced that after July 10 the rate on new National
!•
A case has
City, First National of
just come to light revealing the
bills would be permitted to find its own market level.
Lately, how¬
rottenness of the
Boston and three California banks
administration of relief.
New York City lifted its
ever, the market has sagged back^
eyebrows a few
as follows: American
Trust, Bank months ago over the discovery that the city had been
to its April 1 level, and is well 1month 1% notes are not being re¬
taking care of
relief fam¬
of-America and Security - First
:
:—•—
below its 1946 year-end price of ceived
enthusiastically, because
National of Los Angeles. On such ily in a hotel.
444- As measured by the "Ameri¬ they are to be exchanged for
y$2J45, not excessive at all in view
;t
differences
of
was
not
opinion markets
of
the
can Banker1' daily index, the re¬
three-year 1V4% and four-year
"atmosphere."
But
the
thrive.
made
c 1 e a r;
-V. '■*
M»% Treasury notes due in Sep¬
taxes, listed by the operator
pent course of bank stock prices
E. A. VAN DEUSEN

187 267185

1VO

AJVA

<•

Index

f.p ate

July 2—-39.6

3—-39.9

7-—40.0

i[\

40.2

9—.40.0

;;; ; io—140.0

*11.—40.5

—

direction.

13—41.3

16—-40.6

and

felt

40.6

Lh'

40.9

22_—40.7

41.0

^;^23—_41.0

41.0

24—_41.1

40.8

25——41.3

40.8

41.0

40.8

40.7

'V,J

V: V!

;

31—41.4
,

Treasury,

14—41.1

18—41.2

^ Since the unpegging of Treas¬

The

interest

term

15—41.5

40.6

jjfivi

of this

meals

Reeves Brothers, Inc.

floor

rates,
is

short-

set by the
been raised,

now

effect

the

has

for

already

being

business rates.

For example, on Aug. 7, the Na¬
tional City Bank of New York
announced
visions

series of upward re¬

several

categories

brokers' and dealers'

V\%.

The following day, Bankers
Trust and Chemical Bank & Trust
announced an increase in dealer

loans, collateralized by short-term
Governments, from 7/a% to 1%.

ury bills from the fixed rate of

stock

$2.82

after

the

Phenix
close

Mills,

last

ylMW
'

.—0.752

fisca*

Treas¬

program,

t,place of
ecate irate

about
a

7/e%

the

$7
one

billion.
year

cdrtifi-

Treasury is issuing

12Vk month 1% notes, and also a
%%
certificate, thus
^raising its one year money rate
&from %% to 1%.
So far as the
are

stock

already

in¬

caused

prominent investors' service,
viz; Moody's, to revise upward its
classification of bank stocks from

Group

III

nounced

concerned,

the

12V2-

II,<

'an¬

Stock

Sur¬

vey under the'caption "Improving

Oiltlook for

B&nl^ Earning" It is

also, of interest that Standard;, and

Poor's latest survey of banks, un¬
der

the

of the previous
year.
John
M.
Reeves,

states

caption "Earnings

Hold¬

ing Up Well," predicts that "sec¬

BANK
and

NEW JERSEY

INSURANCE

SECURITIES

the

crease

that
on

the

fellow

carpentering

wouldn't

facilities

5, N. Y.

1891

18 Clinton St., Newark

Telephone: BArclay 7-8500
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager
Trading Dept.)
Bell

.MArket
N. Y.

2, N. X

that

over

Phone—REctor 2-4383

in the newspapers,

problem

his

case

would

for

been

there

would

have

But

pondered

physically
would

whether

able

work.

phtt atyttt ppitta

him

Then

the

would

work

and

sports

clothing,

for

many of the heavier fabrics
per¬
fected and produced in
volume
during the war.
In preparation
for a further

kets,

widening of its
said, the

Mr.

Reeves

mar¬

WHITEHALL S-07S2
BOSTON •
• Post

CHICAGO 4

expansion

this

direc¬

Then
would

hPPbGen * ad£

vertically
manufacturing

textile

emphasized

the

importance

modernizing textile manufac¬
turing processes. He stated tha
-newer, more efficient machines
perfected "it is proposed
to

install

these

substantial
machines in

numbers
the

mills

largely

use

^
+i

the

following
various

days

Sd *£3
^

around

there

poses

Offia Stfuart

MUBbamd OCkO

231 S.

CaSaUt Strut

n*A*m.inT»®»

CG-ioj

two

cipal

devoting

small part of its

day's activities

taking

the

has

Head

Vest Sixth Strict

HtCMMAMtSST

LA-iot*

„

SAN FRANCISCO 4

Jbtss

yet

this

been

Blizzard

«tfrTM •••»

"•

WUVATE
SYSTEM CONNECTING:
NEW YORE. BOSTON.
CHICAGO. ' '
CLEVELAND. PHILADELPHIA. LOS
ANGELES. SAN FRANCISCO
TELEPHONES TO:
Hartford, Enterprise 6011
Portland, Enterprise 7008
r*rn"td<«nce. Enterprise 7008
Detroit, Enterprise 6066
WIRE

26,

Reserve
The

Bank

Fund
conducts

banking

and

Trusteeships

every

Kenya

trariness

employers
to

take

would

Executorships

also undertaken'

buslness

Philadelphia under the firm,

name

of Herbert H. Blizzard & Co.

from the re¬
After his obvious con¬
and
pure
cursedness,

formance

seems

and

COMING
EVENTS

reluctant

quite likely

Investment

Field

repeat his former per¬
of

not

showing

welfare

department

head

Sept. 4, 1947 (New York, N. Y.) '
Tee-Off
Golf
Tournament of
the

announces

tire

rather
blandly
that
perhaps his department is not
being conducted as it should be^
and

says he is

appointing

investigate.

com¬

\ ' i

New

York

Curb

Exchange

Five and

Twenty Club for the en¬
membership of the exchange
at the Garden
City Country Club,
Garden City, L. I.
Sept. 19, 1947 (Chicago, 111.)
Municipal Bond Club of Chi¬

Outing at Knollwood Coun¬

cago

creased

Sept. 26, 1947 (St. Paul, Minn.)
Twin City Bond Traders Club
Annual Golf Party at the South-

their

sales

taxes.. Some levied

taxes,

some

hoisted

their income levies and
others did
both.
In

exchange business
and

officer of Hess,
Co., Incorporated and

written, he has not

him

new

£4,000,000
£2,000,000
£2,300,000
.description

Blizzard

About half the State
legislatures
in session earlier in
the year in¬

Bishopsgate,

Subscribed CapitalPaid-Up Capital--

d,d
^

removed

lief rolls.

care

mission to

Zanzibar

BuSJlnf

ar-srj

Office:

London, E. C.
Branches In
India, Burma, Ceylon,
Colony and Aden and

him.

The

to the
Government in
Kenya Colony and Uganda

Herbert

re-

Gently "been" an

employers. Not only
city been bilked out of
$5,000 but now the city gov-

the

seemedutot be

firm,

earnings re-\they did.

LIMITED

Bankers

room

Blizzard, prin¬

him

of INDIA.

'rre

Herbert

being/taken

business."

NATIONAL BANK

979o

three city authorities to "interview
had

prospective

" -examination.

following day there
another photograph of

ernment

tained

NY1-2S74

him fit to work.

some

Wall Strut

LOS ANGELES t4

aDDliration

him, this time with the examining city doctor, and various poses
of
the city doctor
pronouncing

com¬

pany has continued to
expand its
research facilities
and
proposes

physical

though, to have got a
thought out of the experience. He

Rli

was

There
Dr0£rres<.

photographs

scar-

mafjon

instead, the welfare depart-

ment

PHILADELPPHIA, PA.
nf
+£?,T~ For~
Se tradlnS firm of

question about his being
immediately taken from relief.
no

does seem,

NEW YORK 5:

Herbert H. Blizzard to
Resume Own Firm

the

department. Once
brought to light you

was

given

through the

INCORPORATED

amazing commentary

rellet rolls,

along with the

constituted

think

kets,

*****

CEYER k CO.

pf manpower, little or no dent
fta£: ?eeP. mac*e in the country's

city's welfare

that.> the

part of

BANK and INSURANCE
STOCKS

It is

period of several days
his activities were duly reported

developed new mar¬
especially in the field of

modernization program.
It is expected that
the cost of this
program will be AAJLiUULL/U
financed

WHOLESALE MARKETS IN

~fve,;

this,

company has

are

3-3430

units

Established,

all.

en¬

larger,

Rippel & Co.

being

principally

which

first observations

a*fec+tl0£at.ely referred to hereaoouts, but the great majority are
capable of work. There are
posters all about the park offerln& employment. But living off
his trade reiiet has been made too attrac-

Perhaps, the most interesting
phase of this whole episode was

integrated

J. S.

was

work

offered

Mr. Reeves
pointed out that the
trend
toward

Members New York Stock
Exchange
130 BROADWAY, NEW YORK

and returned to

grinning and the welfare department officials
abled'the company" to furnish
grinning as they
the
types of textiles i most in demand. announced solemnly to fthe waiting reporters that he was to be
.:J(Mr. Reeves reported

production

tion.

Laird, Bissell & Meeds

job as a carpenter something that with our
employand failed to report for work on ment
at the highest peak
ever
the day agreed to.
known, with there

in¬

higher margin of profit made
possible in part by
flexibility of

sanjis of men loafing in a public
Park. Some of them are oldsters,
°L a?mor citizens" as they are

was

lower

supporting him entails.

a visitor to this city is the thou-

President,

due

was

our

F1?.

and unless he could work at

further

STOCKS

report

earnings

sales volume
to

Group

in its recent

!>J0-month

banks

has

and

bank

one

Following the action

Involving

for

news

vestors

ury bills by about six weeks, the
(
Treasury announced on Aug. 17
/ its
September refunding
:

good

which

Carlisle Bargeron

should have to support
amorous
friend, and
particularly the bureaucrats

cocktail

relief in

that

year

even

repented his illicit
a forgiving wife. The attendant publicity
brought him several offers of employment. He insisted, however,

—0.741

think

j drinkers

IT such

why he had been

The

"v>

don't

question

romance

Net sales for the latest fisca
Aug. 26, three New York
.%%, the average yield has risen banks, viz: National
City, Chase year were $49,025,066 compared
!from 0.594% on July 10 to 0.752% National
with $54,190,878 reported in the
and Manufacturers Trust,
on. Aug.
28.
According to the increased rates on bankers' ac¬ pro forma statement of the
previ¬
^"American Banker" the weekly ceptances from 7/8% to 1% for 90 ous year.
figures have varied as follows:
The company's balance sheet as
day paper, from 1% to 1 lA % for
of June 30, 1947, showed
Date
Average Yield 180 day paper, etc.
working
It appears safe to say that the capital of $11,029,343, represent¬
July 10
_0.594%
trend toward lower interest rates ing the excess of current assets of
17
0.737
t''
has been definitely arrested, its $15,717,073 oyer current liabilities
24
—0.740
direction reversed and that the of $4,687,730. This compares with
31
0.740
0.740
period of excessively cheap money working capital of $8,883,267 re¬
Aug
7
,1
14
has finally come to an end.
.——0.741
This ported in the pro forma statement
hiV,>o.
"

buy.. But
.

per

acquired

the

you

on prac¬

$5,000.

share for the year ended June
30,
1946.
These earnings do not in¬
clude
results
of
operations
o"

Eagle

paid

[ this fellow made them visible and
divided them up for you. '
Vy

the
of

experi¬

are

the first place. Over a period of
some three
years he had drawn

This compares
forma consolidated net
or

An¬

relief

the

outstanding.
pro

ence;'The taxes

tically everything

family of ten,
eloped with a
teenager. This
brought up

consolidated

Los

recipient,

net
profit,
charges and taxes, of
$4,129,050, equal 16 $3.63 per share
on
1,137,238 shares of common

with

per¬

father

all

loans, effec¬ profit of $3,209,203,

tive Aug. 11, of between Vs % and

geles

and its subsidiaries since comple¬
of its integration program,
after

I C:*tk'

their

much,'. State so much
janid City so much, came to $1.00 1
onj the $2.45. You don't have to go
to night clubs to have
this

haps not..

tion

shows

rooms,

of operations of the company

year

Federal

were

them

their

served

Earns $3.63 Per Share

12—41.3

40.7

40.6

whether

is, in
improve in¬
Date
Index
come, the banks are tending to
Aug. 1____41.4 increase their holdings of "the
4
41.0
longer term Governments at the
5
41.4
1
expense of the short term.- Ob¬
The annual statement of Reeves
6—41.3
viously the Treasury has deter
Brothers, Inc., manufacturers of
7
41.5 mined to
proceed cautiously even textiles, for the year ended June
8—41.5
though in a significantly upward 30, 1947, covering the first full
11
41.4

One result

tember.

order to protect and

14.—40.7

of the News

-r—j

has been as follows:
&'»: •'

Ahead

Hollywood this writer went
night club, something he very

seldom

does

but

man

it.

more or

Three

visiting fire¬

less called upon to

Dry

Martinis

cost

try Club.

■

:•

view Country Club.
Nov. 30-Dec. 5, 1947

(Hollywood,

Fla.)

Investment Bankers Association
Annual Convention at the
Holly¬
Beach Hotel.
i

wood

•

Number 4626

Volume 166

Smaller Meat

& FINANCIAL

COMMERCIAL

THE

The Low-Dowxt

Supply and Higher

...

Prices Ahead
By CHARLES

A. BURMEISTER*

ily

and
sup-

previous
The

during

of largest slaughter.
total that ; year ex¬

al¬

war

•

that

large slaughter,- cattle

The best meat

bers

decreased

sure/ did

n o

expe c

those

prices to

be long mainmarkets

.became

of this year

almost certain
least

total

operate
un-

restricted

and

selling. The price declines which
followed during the winter ap¬

all

cautious

usual

planning for the
future. Past experience has taught
them
that
prices
can
change

quickly and that the movement is
not always upward. The poor corn
prospects complicate the situation
still more. *
X.";
It Is
your

formation

to bring to

purupose

attention
we

some*

in¬

the

3eopie

the

million and

ine

cattle

calves

and

have in the Depart¬

this

for

statistics of

Agriculture

relative

homes

much ashamed. Today

high

ing

because

wages,

themselves find no

what

prices

may

evidence

ther

do J

that

the

situation

the livestock

from the price
level, is the very large number of
cattle
and
calves
going
to

aside

Records

slaughter.
Under'

slaughter

Federal' inspection,
estimates

conservative

and
other

slaughter, show more cattle and
calves going to slaughter than in
any
previous year. During the
first 7 months, the combined total
was

about 5%

greater than in the

corresponding period of 1945, the

have

the

been

lightest

they

the

number and

and railroads, however, are
so bombed out,
and gasoline and
trucks
are
so
scarce
that this

tain

other
be

heifers

slaughter

even

Even

•

when

farmer

will

not

francs

Poland

The

take

and

100

who

well

behavior

the

for

cows.

*From

address

I* think
Upon ask¬
ing for his reason, he replied
"Why you have Truman for a
Mr.

"Really,
Japan

Babson,

the war."

won

leader

and

have Mac Arthur."

An unconscious

the" delegates

question among

these

United

States

continue

by Mr.
Annual

The high

them and stolen from them.

however*

down¬

believe that

bed

Here

the farmers have been rob¬

even

carts

cattle, horses,

of; their

what little machinery they
had.
Still worse,/'the people of
and

these

countries,

their

character,

sense

of honesty.

Lying

now

are
fast losing
morals and all

;

clothes,

that

unless

against

30,000 Shares $3.75

well

our

about.

selfish

smugness,

the

Bow,

(Continued on page

...

the securities herein mentioned.

Cumulative Preferred Stock

30,000 Shares Common

dividends

Price $33 per

F. Eberstadt &

TWIN CITY BOND TRADERS CLUB

The date of the Annual Field Day of the Twin City Bond

;
i

and. J5t.> Paul; voriginaUy. announced

advanced to Sept. 26,1947;

: v

for Sept.

-V

Co; Inc.

Traders

Club to be held at Southview Country Club, located between Minne-

L—\apolis

Copies of the prospectus may be obtained from the undersigned only
in states in which the undersigned is qualified to act as a dealer
in securities and in which the prospectus may legally be distributed.

NSTA Notes

Stock

Without Par Value

27)

19/ has been

September 3,1947.

people of Europe
haplessly * wandering

are

Products Corporation

share, plus accrued

is a

needs and this applies

Without Par Value

Price $98.50 per

It is religion that this

us.

old world

Westvaco Chlorine

long this rate can be maintained.

Broken

Aug. 29, 1947.

there

voluntary levelling off, the whole;
world -will
someday
gang
up

who

recognized

beauty

taverns and strike

rate of cattle and calf

Neb.,

Association,

"live

Riley," wasting on food,
entertainment,
unneeded

the life of

Cow

Convention of the Sandhills Cattle

the

fifty na¬
in the

How long can we

tions is:

he construed as an offer to sell or as an offer to buy
The offering is made only by the prospectus.

slaughter during the last 8 months
causes one
to ponder as to how

before

our

Allies, the Germans and:the
Russians have all double-crossed

terribly

are

the

NEW ISSUES

slaughter, however, has been un¬

of,

One Japanese said to me,

troops.

usually large since March.
Burmeister

says

grudge
They wel¬
and speak

people have
Americans.
our
occupation

come

just back
that

person

its

bad

Balkan repre¬

hearted. These people

This announcement is not to

may

parlors, drinking
picketing while
the rest of the world is starving?
You readers can answer this ques¬
tion as well as I. It seems to me,

sentatives i

buy food, the

take

will

to clear up the debris.

years

Parisian gets out

into the country to

rate

present

reconstruction

to cause trouble
X /'
"

they can to

and unrest.

the

tell

Hiroshima

against

for

statisticians

Nations

that

whatever

I talked with
from

big cities which will

our

that,

France; but there the Communists
are in control and they are doing
all

United

There should
in
Southern

cities.
enough
food
large

exchange

itch"

cities

mean.

things
to
the
will not
accept

money)

big

damaged

severely

atomic

someday be in the same mess that
these
German
cities are today.

and the

cannot get to Paris

food

the

why I am advising U. S, young
people to settle in the country or
on a
small farm away from cer¬

ways

propor¬

slaughtered. The
smallest rate of increase has been
in

This is another illustration

food.

The high¬

meat, milk and butter.

exert

since

and

down

are

Stocks, bonds and bank ac¬
counts have been wiped out.
In

war

these
(who

farmers

bombed; but there is a plenty of

they
averaged nearly
50
pounds lighter than a year earlier.
The most phenomenal increase
in cattle slaughter this year has
in the

families

wealthy

year

./-•

the

offering

talking with those from

Northern France has been heavily

getting separate weight records on
steers, which was in 1938. This

tion

the

out.

imported china, etc. These
were stored in the homes
of German politicians and offi¬
cers.
Now these city people are

paper

Department of Agriculture began

been

all

products.
Most farm
reported to be in good

things

France, I am told that its trouble
is
more
one
of
distribution.

ing a strong pull on cattle to the
Large Slaughtering
/
Probably, the most outstanding markets. Slaughter steer weights
year,

and

are

before

scarce

very

sugar

Japan

our

ware,

food to eat.

While

//;•:

this

coffee,

and

present

demand and price level are

feature of

are

the Germans
robbed France, Belgium and Hol¬
land of their fine pictures, silver¬
During

Fats

are

officers

our.

terrible.

tions

liv¬

places to sleep

7 months.

first

the

well

imported

bread.

of the poor people of
better off today than
war.
Of course, the

ing in the cellars of ruined build¬
ings or in temporary shacks. It is
true
that
carpenters coming * to
these wrecked cities are demand¬

classification of cattle slaughtered

during

in
and

fact, most

all their troubles onto us.

hate

cornbread.

Steer
payment except at a big discount.
livestock • numbers and trends in slaughter ...under Federal inspec
He really wants either American
livestock production which will tion during that period was equiv
dollars or English pounds. If gold
enable you. to appraise the live-. alent to nearly 62% of the esti
stock supply situation, not only mated number of * steers in the oh silver is not available for cur¬
for this year but for next year, country at'•■thev'beginning of the
rency/he wants gold jewelry or
and possibly 1949.1 shall comment year.:The previous high figure
silverware; or
something else
only briefly on the demand situa¬ recorded in 1942, was 56%. The
light weights . of the which he can use as barter to buy
tion and make no attempt to fore¬ unusually
cast possible changes in demand steers slaughtered this year is fur
ment

farmers

have enough to eat. In

They

have to stand in

millions of British people are

the cattle supply

the

see

I feel very

shown

said

The;

shape.

fishermen

crime, gambling and prostitution
still reign.
The principal com¬
plaint of the Japanese is "the

future to take
strong current
demand as expressed in the pres
ent level of cattle prices.
Evidence
of
the heavy drain
is

however, everyone is
They are mad now and

Japan

the

very

being made

city.

Rural

ly in ruins and the housing condi¬

the

for

the

American

small

restaurants and most U. S. homes,

however, exceedec
average of the prewar years
by only a little more than 20%
The large increase in slaughter
this year is being obtained
by
going heavily into the reserves of
cattle normally carried for fur¬
ther
growth, replacements, and
expansion. This does not mean
liquidation in the usual sense, but
indicates that we are using up
of

not complaining.

family in the country or In

your
a

condition; but the cities are large¬

year,

supplies

reason

the waste in hotels,

the

care

moreover,

major industry. This
for bringing Up

is another

good

blame

beans.

burnt

are

the

clothing

griping.

for hours to get even these

When I

preceding the war, and
that the output of beef and veal
has increased by the same rate.
Cattle numbers at the beginning
of

made

things with a loaf of black

slaughter this year than it did in

held at levels
higher than most of us thought
they would be.
A price situation so widely dif¬
ferent from anything previously
experienced naturally causes
than

1941

coffee

the 5 years

have

stockmen

less than 26

was

appears

that it will be

now

million.

during

50%

proved to be much stronger than
was
generally realized and thus

prices

head.

the late thirties it
ranged from that figure down to
slightly less than 24 million.
Slaughter yecords show that the
cattle industry is marketing about

peared, therefore, to be a natural
readjustment
by
which prices
would return to levels where they
would
reflect more correctly a
lower
balance
between
supply
and demand. Demand, however,

far

million

near

Germany,

rilled with

\ buying

eggs are pow-

China;! the best sausages are
oatmeal; and the best

from

forces

;

countries

dered eggs

grand total for the year would be

competitive

C. A. Burmeister

W.' Babson

Roger

same

last year as

over

best

tina;. the

food

said to be

England and France both the
food and shelter problem is very
serious but the people of these

Argen¬

for

parents say "Well done."
Here
again conditions, are worse ip the
big cities where prostitution is

meat

horse

from

occurred in the first 7 months, the

fully

ing under

mil¬

should show the

of increase

rate

./adjusted j to

{

than 3

lion head by the end of the year.
If slaughter during the remainder

/tairied, ditce"
the

num¬

soldier

posit box!

home.

plies mar;keted. Almost

running and mixing like wild anir
mals. If a girl can sell her virtue
to
an
Allied
or
even
Russian

currency,

jewelry, silverware and diamonds
hat you can take with you if you
though they
now have the
suddenly are forced to escape
satisfaction of from some big city at the begin¬
having fathers ning of World War III, You won't
and boys safe¬ have time to visit your safe de¬
the

and

Europe sexual restraint has been
thrown
aside
and
millions are

Keep hid¬
at all times a
gold

city dwellers.

certain amount of

all Europe as being
right; but in Eastern

hroughout
normal

lesson for all

in your house

den

machinery,

is certainly a

lere

U. S. big

ceeded 35 million head. Because of

everyone,..

blankets

clothes,

Eng¬

are

bad

year

yearly

land

the

ordinary fam¬

Last summer when price controls were removed, prices of live¬
records

for

tions

stock and meat rose to levels that seemed fantastic when compared
with .previous
with

if?.

Condi -€>-——

supply specialist points out present high rate of slaughtering
and reduced corn crop portends higher meat prices next year. Says
lamb and mutton will also be in short supply because of sharply
reduced breeding flocks and that lower income groups, because of
better earnings, are in market for more meat than formerly.
Meat

/"•j

By ROGER W. BABSON

in New York

Europe

City trying to get the low-down on the real conditions abroad.
Truly they are very discouraging. It looks much like the case of our neighbor's house being
on fire when, if we do not help him to put his fire out, our house will burn down also,
I

Agricultural Economist, U. S. Dept. of Agriculture
+

(917)

CHRONICLE

P***"

THE

(918)

COMMERCIAL

FINANCIAL

CHRONICLE

;

Thursday, September 4,^1947

Government in Economic and Industrial Relations
'V

By EWAN CLAGUE*

•

Commissioner of Labor Statistics
can be no definite answer to problem of government's role in industrial relations, Labor
Department official holds various kinds of governmental action are essential in modern industrial order,
Says collective bargaining is established principle and must be upheld, but in area of employer-union
relations, compulsory powers of government should be kept at minimum.. Advises establishment of procedural arrangement for settling disputes and dissemination of information and economic
knowledge.

Asserting there
securities as a

abject pessimists towards railroad

Even the most

disaster for the industry in mounting
costs and the pending wage decision, are inclined to adopt a more
constructive view towards Union Pacific common stock. , At recent
levels somewhat below 140 the stock affords an income return of
around 4.35% on the well protected dividend rate of $6.00 per annum.
and those visualizing

whole

has the company

1905

since

Not

;

—

paid less than that in any one year
and certainly regardless of
the

year will more than cover all requirements coming ahead of the.

present wage negotia¬

2,222,910 shares of common stock.
These prior requirements are cur¬

outcome of

Paci¬

tions the outlook for Union
fic's

earnings

far

now

in the de¬

favorable than it was

pression period of the 1930s. As a
matter of fact, most railroad an¬

pretty, well convinced
more liberal dividend pol¬

alysts
that

are

result, its wage

relatively low.

roll taxes accrued

Based on pay¬
far this year,

it is indicated that

labor costs of

Union Pacific

(wages plus payroll
taxes) absorbed less than 45 cents
-out of every revenue dollar.
On
this basis a 12%% increase for the
■■■

first six
the

months would

only
millions.

little more
Allowing for

company

than

$10

cost

have

the accompanying saving in Fed¬
eral income
taxes the
net cost
would have amounted to less than

$6.4 millions.
of

Earnings per share
stock

common

would

have

Union Pacific

when

hand

stock earnings have av¬
$12.40 a share over the
past
ten
years
and
in
1946
amounted to $11.90. On the basis
common

eraged

results

far

considered

likely that 1947 earnings will ap¬
proach the $20.00 a share level,
not

far

from

the

peace-time
peak of $20.37 reached in 1929.

amounted to around $5.50 (almost
the

full

year's dividend require¬
ment) as compared with the $8.37
actually reported.
Union

Pacific

soundest

has

of
in

the

industry.

Since June 1, 1946 the
company has paid off with treas¬
ury
funds $168,327,500 of non-

equipment debt, the latest retire¬
having been $100 millions of

ment

1st 4s on July
1, 1947. The nonequipment debt now stands at less

than $180 millions
of it

with

the bulk

carrying interest at less than

3% and the rest at 3%. Even with
the substantial payments of ma¬

turing

bonds,

mained

finances

have

re¬

exceptionally strong. Net

working

capital

estimated

Farmers'

financial

make

that

ings

Buying Power

Up, Workers' Down

Farmers have

more purchasing
today than a year ago, but
city dwellers' "real income" is de¬
creasing, according to the monthly
Investors Syndicate survey. "Real

income"

revenue

the

relationship

living costs.

today

dollar

every

wages

are

year

only

dollar.

every

$1.29 for
ago, while
to $1.19 on

are

Farmers'

income

PURCHASING POWER
-Year

Today

ago

Another important element of
strength in the Union Pacific pic¬
ture is the substantial income de¬
rived from the oil

properties.

far

these

earnings

have

has

addition

important

East

Los

fields.
from

come

year

the

the four

little

over

preceding

net

than

an aver¬

INVESTORS SYNDICATE, MINNEAPOLIS

For the

income

ran
a

is 99 cents

age

and this was
largely, if not
entirely, attributable to increasec

last

oil and gas operations.
There is little question but
tha.
gas operations alone this

oil and

from

year

aver¬

compared with

year's dollar,

and for wage-

earners

it is

dicate's survey shows. While in¬
come
is up to $1.18,"
living costs
have risen to $1.19. Shelter is
at
a

year

ago,

clothing at $1.19 and miscellane¬
ous costs at
$1.22.

"Prosperity

the farms and
farmers' increased
purchasing

Bonds

strengthen a segment of our
that
over
the
pas

power

Special Securities

economy

quarter-century has had
periods of

serious

weakness," said E. E

Crabb, Chairman and President of
Investors
ward
guaranteed railroad stocks-bonds
25 Broad Street

New York
4,

N.Y.

Telephone BOwling Green £-6400
Teletype NY 1-1063

century governments be¬

active role

in labor matters.
But

intervention

government

not confined to legislation for

was

the

improvement of working con¬
ditions.
While
the
legislative

trend

urban

some

Syndicate.
of

areas

questions

the

present

"The

power

may

give rise to

continuance

volume

lines of business."

many

under the National Re¬

Administration.

employers

Recently,

make it

nomic

have

urged the

government to

assume

great reg¬

ulatory

over

its function

vital factor in

life.

But

the

thd

institution

and

power

trade unions

Time

circumstances

the

ence

there
to

and

definitive

problem

relations.

the

government in the
trial

But

influ¬

function

its best until it is given
able assurance that the

reason¬

principle

and

the

dustrial

and

actual

conduct

of in¬

relations.

The

answer

would

role

of indus¬

area

cannot

eco-

unioii

its right to exist is
fully and
completely accepted, both in' law

Recognized

opinions of all of

can

the

employer-union relations.

Principles

our

labor

the

prin¬

such

application

principles

these

existing, conditions.

First, there must be general
recognition of the fact that gov¬
ernment has

third
principle
that
I
suggest is that in the areq
employer-union relations the

compulsory

powers

should

keptat

of government

.minimum.

field

the

working .conditions.

own

back

the

1920's,
a

judicial history of the
realizes that "govern¬

one

ment

Looking

by injunction" was more
figment in the minds of a

few labor leaders.

Thus, in spite of

legislation,
large
began to

segments) of

workers

ernment

consider

instrument

and

about

now

defining

merely suggesting
acceptance of the principle
am

best

interest

the

However,

earners.

those

who

among

even

existing
of op¬
pression, there were wide differ¬
ences of opinion as to the proper
role of government.
Within our
own
generation we have
wit¬
nessed significant :reactions from
these divergencies of belief.
of

answer

Karl

Marx

is to be found in wage-

taking

the

over

govern¬

establishing a dictator¬
the proletariat. .Others,

of
as

the

try,

the

and

the

land,

I.W.W.

this

coun¬

syndicalists in France,
guild socialists in Eng¬

repudiated

the

desirability

and

necessity for strong nationa
governments. They contended tha
modern

industrial

be best administered

(brain

ers

society could
by the work

and brawn) in each
without benefit of

centralized

political government
except, perhaps, for military pro¬
tection.

The

American

trade

union

movement, as we know, re¬
jects both these extremes,
al¬
though it leans toward the policy
of

"the

less government

in labor

relations, the better."
Just

there

are

ernment.

government in econorhics

industrial

relations

affairs

Tart of

an address
by Commis¬
Clague before, the LaborManagement Conference of the

sioner

New York
trial

and

N. Y.,

State School of Indus¬

Labor

Relations, Ithaca,

Aug. 22, 1947.

what

certain

stamp "out
abuses in the

regards

compulsion

under

of industrial

relations. It

is not easy for the citizens of one

generation

to weigh the conse¬
of their collective action
in the light of the < previous,
ex«j
perience of former generations, otU
quences

never

even

the

some¬

ence

of other nations and

contemporaneous experi¬

peoplesf

about

should

from

eliminated

;

mit that this should not and
not be done. The

can¬

problem then is

define

the

scope

nature

action,

not

simply

deny its existence.

lective bargaining is a
recognized
and
established
principle.
This
means
a

law

simply passing

saying that this is

can

than

passed

repealed. Far

so.

laws

and

Laws
b

can

important than

force

through

solution. But
matter

no;

what

provocation

some "

must all

the

drasti6
realize; J

immediate

is,

that no law or
government compulsion can pro-*
duce good employer-worker rela^
tions

any

marriage

than

laws,

Second, it should likewise be
accepted beyond dispute that col¬

the legal expression of the Na¬
tion's belief in collective
bargain¬

ing (although that particular

ex¬

no
matter how strict,. can
insure happy marital relations. * |

Compulsory Arbitration
When

we
are going through
a
period of unusual turmoil, as we

are

this

adjustment

postwar

period,

there is likely to be a
great deal of talk about compul¬

especially fo£
employer-labor disputes

arbitration,

sory

those
which

disturb

and

the

affect

general

the

econ¬

convenience

pression of it is very important)
is
the
genuine
acceptance
of
collective bargaining by both em¬

omy

ployers and

leaders in the

who want to be fair to both em-?

day-to-day administration

ployers and workers, argue > that
their differences should be settled

actual

union

of industrial relations. Confidence
in collective

bargaining must exist

in the hearts of
the statute
in

well

books, if it is to work

not

must have

society,

say that we
collective bargaining

that

order

could

time when there

was

not

exist.

As I
was

little col¬

and we

progress.

some

kind

means

was

OJ:

bargaining, and still there

economic

that

other kind

already indicated, there

lective

have

the

order.

die

features

economy,

o:i

however

decided that collec¬

bargaining
for

provides

the

better kind of indus¬

Likewise,

sacred

there,

unchangeable
about the corporation as a busi¬
ness
organization. 'There was
time

when

we'

got

along

with

partnerships and individual en¬
terprises. We might decide in the
future to strengthen these other
forms and to go back to
them; or
we might devise new forms which

imagine would be better. All
wish to emphasize here is that in
we

and stability of the entire coun¬
try. Many well-meaning persons,

authorized

impartial agencies

make

decisions

which

the

parties to the disputes must accept
as

mean

economic
have
a

men

actual life.
I

nothing

have

the field. Upon
thought, however, they ad¬

second

trial

and

deny this, but

talk

unanimity of opinion on the
employer side with respect to the

strikes

or labor
Oftentimes the first thought of the ;
man
when
keeping the average
confronted'
government out of management- with a tough problem in industrial
labor relations,
they seem to relations is to turn to the com¬
express the thought that the gov
pulsory powers of government and

leaders

tive

differences,of

governmental

times when businessmen

belief among workers there is also

rule

order.

governmental

weapons

followers

ndustrial

leard anyone

wage

suc¬

functioning of the modern

inimi¬

considered
as

kinds is essential to the

ous

cessful

of sthe

therefore

cal

gov¬

use

prevent

conduct

talking
hat role; I

entirely
palliative

some

to
to

not

:;he

and

public seems to have
willingness in recent year!

shown

circumstances,

that governmental action of vari¬

employer-labor disputes in such a
way as to restrict the collective
action pf workers to improve their

ciple.'The

significant role to
play in industrial relations. I am
a

judicial branch of the government
in this country was intervening

down¬

purchasing

regulations

acting protective labor laws, the

lower, Investors Syn¬
industry,

$1.04 for each dollar

Guaranteed Stocks

The overall "real income"

lier

$1.24

ago,

year ear¬

net from

about

bargaining agent' ha3
sufficiently accepted tq

was

to assume a very

gan

such

$7,600,000 in

years.

$6,000,000 above,

the 19th

ship

profit

amounted

first half of the current
year total

non-Operating

earners

Rangely

$6,622,000 compared with
age

the

ment and

and

operations

wel¬

development

imperative that1 ciples of government which I out- This seems to be
generally ac-<
ined earlier in my lecture have
government intervene and estab¬
cepted by businessmen and labor
lish laws and regulations regard¬
any meaning thon we should be
leaders, but I am not so sure that
ing hours, safety and other work¬ able to apply them to present-day the
public generally,
including
ing conditions. Thus, under the industrial relations. Let me try to individual
employers and tradq
so-called laissez jaire economy of summarize some of the highlights
unionists, have accepted this prin¬
nation,

the

future

Clague

have adhered to his doctrine that

company

interests

Angeles

Last

oil

the

popu¬

fare ' of

Ewan

The

largely from the Wilmington field
but

masses

the

governments

may go to stockholders.

provided

lation and the

employers

so
many
analysts believe
larger share of future earn¬

large

government

they

fit."

saw

than

This shift is reflected in the fact
that food costs

which

reserves

.busi¬
as

abor union and

become

protect the

power

close to $100 millions at the
pres¬
ent time.
It is the conservative
debt structure coupled with the

large

their

run

branch of the government was en¬

the

structures

debt

one

"to

stage

dented

many

.free

his

/:'

;—

■

state

collective

covery

was

collapse in 1933, most em¬
ployers welcomed the unprece¬

were

given

nesses

business

em¬

ployers

always been a
highly profitable operating prop¬

Without any adjustment for pres¬
ent
reduced
fixed
charges 1 the

existed

which

has

erty and good earnings from this
source are expected
to continue.

em-

ployment

.:—■■

—

litter

condi¬
of

tion

Aside from its outside interests,

rate in relation to gross revenues

securities held.

—

When

erable

rently running at an indicated an¬
nual rate of $9,732,000, consisting
of $5,750,000 of fixed charges and
$3,982,000 of preferred dividends.
As recently as 1944 the company
accrued
fixed
charges of over

for

condone

long the mis¬

$15,000,000. In addition to oil and
Union Pacific enjoys the longest gas operations the-company last
year also received non-operating
average freight haul of any rail¬
income of roundly $9,000,000 rep¬
road in the country. Also, it car¬
ries a considerable volume of high resenting dividends and interest
freight. As

and "natural" laws of free

icy is in fairly near term prospect.

class

Regardless of economists': pronouncements about the "iron law of supply and demand"
competition, the moral judgment of the community could not

■,

...

final. Comparison is

frequently

made to the functions and powers
of courts, which settle civil.dis*
putes and impose penalties for

violation of the laws.

This comparison between
and compulsory arbitration
dustrial disputes has only

;

courts
of in¬

limited

validity. It is inappropriate in the
majority of disputes which have
to

with

tions of
be

the

terms

and

condi¬

employment which are to

included

employer-union

contracts, although it might have
some cogency with
respect to the
enforcement of the terms in exist¬

ing contracts. Courts function un¬
der

laws

which

express the will
and
the
courts
merely interpret and apply these

the

people

laws in individual situations. The

people of this country have never
expressed their will in legal code
as

to how

should

the income

distributed

(Continued

page

business
between

28)-

Volume( .166 : Number,4626

CHRONICLE

COMMERCIAL & FINANCIAL

THE

Do the Communists
By ROBERT THOMPSON*
State

Thompson

Mr.

foreign
,

Denies communists

agents of

unpatriotic.

power or are

line

every

well

American

by-

policy.'

key industries.'
You
find

free peoples

Communists

ace

Communists

■

amazing

meaningless. There isn't a single
item in it which the -Stalin gen¬
eral staff for America wouldn't

•

fight

against

hundred times before. / —

Ask

Amer¬

the

Negro people Who

them

aces

Robert Thompson

men¬

today, Eugene Dennis

I think many

somebody

h i s

the lynch mob?

Is it really

question.

advance

John Rankin? The Communists

Russian

It's

bear.

Wall

Lyons will tell

But

the

you

the

same
am

old

ready

the

match

Engene

patriotic record of
American Communist Party
r

the

their

people hasn't the slight¬
to what's really in
minds.
Communists,
you

must

relation

legitimate revolutionary

They

with

but

pride. What

the

just

clear
of

sense

world war?

how

sang

Yanks

few min¬
smoke screen

heard

you

utes ago was

and

weapon.

it not only with

use

conscience

off

their theme song, "The

Are Not Coming"?

ripe for yet

was

Stalin

longer

lend-lease. The Amer-

our

could, therefore, go
trouble-making, to
bigger and better strikes, to fo¬
menting class and group hatreds,
o
throwing
more
monkey
wrenches into the machinery of
American life.
Red imperialism
was on the march in Europe and
Dack to prewar

Asia.

red fifth

The

column

hero

play. It had to
clamor
for
the
withdrawal
of
American troops.
It had to de¬
its

had

part

nounce

that

Moscow's

interfere with

schemes.

expansionist

The Communists have the

talk in

the

policy

American

every

threatened

name

gall to

of the workers.

Why, they sell the workers down

stooges

they
picketed 1 the
"war-monger" in the White House
Recall

understand, regard the lie as

touched

which

tell

Communists

American

est

Moscow's

day that Hitler and Stalin made
their bloody
pact of friendship

guessed right.
the

f;;

became ardent isolationists

listeners and I

What

happened

It's

forgot their hatred of Hitler and

his

with

Moscow.

how

Recall

some

you agree

story all over again.

driving him
We demand a special ses¬
for

program

hoax

minute

another,

that

remarks

would

much that I have said.

about

guessing in

from

I'm

And

not

guessing.

you

morning if

ordered

Street wolf.- The Communist Party

away.

tomorrow

renounce

entirely safe

that the animal outside your door

program

tonight is utterly

But I did feel

and

need to fear? According of you may still think Communists
io a recent poll, 24% of the Amer¬ are a menacfe because you have
ican people put the high cost of been
told that they are agents of
living as the number one menace a foreign; power and told it so
today.Don't let anyone tell you often that you believe it. In just

has

outlined

foif free" elections

lynching

Communists

The

orders.

heard

here at home in the lahd of Dixie.

blse you

They just

philosophy.

obey

greed and their

the

defend the

particular
to
his
rather

myself. I'll
skip
those.

'■

ica.

look at this

claims

ventions about

men-^

Let's take

a power
machine centered in
Moscow. Its American agents, one

of whom you heard tonight, don't

of Wall

men

myself
to his specific

switch.

agents

can

pre¬

America and to you?

in and
day out you
are
told that
day

we are a

throughout the world

home.w Are not the

the

dress

mad delusions the real menace to.

Yet

causes-

free trade unions here

Street with their

good

many

well

needed

prepared this talk I didn't know exactly what the Com¬
munist official who preceded me was saying.
I couldn't, therefore,
pared text ad¬

super-pa-

even

Then the time
another

When I

our

They have

policy as
Taft-Hartley domestic
They are out to shackle

Vvorkers^in

active

power

Taft-Hartley foreign

waged

bemg

war-making"

enemies of yesterday.

struggle

b i g

They

out of danger.

blind alliance to Moscow power machine and Communists here are
prating about liberalism while seeking disruption of our economy.

became

embraced pri-,
vate enterprise and Wall Street.'
That lasted until Russia was safely

■;a

The Communist Party, is very much in the news these days. Even
the anti-Communist press can't help reporting the fact that we're
<*»the front
in.
the

riots.

Asserting Communists regard the lie as a revolutionary weapon, Mr.
Lyons accuses them of aiming to destroy our free economy and
democratic government by violence. Says Communism has become

should

are

comrades

The

Utopia"

Author of "Assignment in

instead of fearing the Russian Bear

says

Really Want?

By EUGENE LYONS*

Chairman, Communist Party

fear the "Wall Street Wolf."

(919)

Recall

how

the river without blinking an eye¬
lid

Kremlin's

the

when

policy requires it.

foreign

They've dono

it before.

really
written

What do the Communists

want?

The

answer

large in words of blood

wherever

they have seized control—in Bul¬
garia, in Yugoslavia, in Poland and
in Hungary, above all in Russia
itself. So they prate of liberalism

suddenly overnight on June
22; 1941, they switched from iso¬
and play with the words about
lation to advocacy of immediate
Wall Street. They're, in fact, the
war?
Why?
Had America, per¬
poisoned spearhead of the black¬
haps, been attacked? Nothing of
est reaction
in the present-day
the sort.
Pearl Harbor was still
world. What do they want? They
months in the future. No, their
are under orders to prevent eco¬
real fatherland, Soviet Russia, had
nomic stability and to promote a
been attacked.
So a new party
new depression, to strip our coun¬
line was in order. The theme song
try of military strength, and to
was altered slightly to read "The

sion of Congress to deal with the

with

hi^h cost of living. We want the
steel industry declared a public

goal which is to destroy our free
When 3,000 of us were fighting economy and our democratic gov¬
Fascism in Spain, Mr. Lyons was ernment, to replace them with a
Soyiet-type dictatorship.
Every
defending the bombing of Spanish
Communist is a member of a great Yanks Are Not Coming Too Late."
(Continued on page 16)
women and children by Hitler and
conspiracy to turn America into
Mussolini. Which;of us was acting
another Poland or Hungary and to
in the interest of a foreign, power
put it under the iron heel of the
then?
When 15,000 members, of
despots in the Kremlin.
Under
the Communist Party were fight¬
This is under no circumstances to he construed as an offering of these shares for sale, or as
theircamouflage phrases about
ing on the battle fronts of World liberalism and Wall Street is their
,
an offer to buy, or as a solicitation of an offer to^ buy, any of such shares.
War II, Eugene Lyons was slan¬ clear and' oft announced
The offer is made only by means of the Prospectus.
purpose
dering our Commqnder-in-Ghief of precipitating a bloodyfrevolu¬
backers

utility in order to lower prices
and expand production.. We want

speculation in grain and livestock
ended.
and

price controls

want

rationingrestored

the

dairy and

products of the grain,

big

corporations
this

pfraid, of

are not
Street 'wolf;

Wall

Mr.

the

day

any

and his

Lyons

bust.

menace,

eign affiliations.
Take Standard
Oil of New Jersey, for example.

blame Wall

Street- and its party not the work¬

ing class and its party.

them

the big

say

the

menace

Taft-Hartley

corporation was fined
failed to contest Depart¬

In 1942 that

Fifteen million American trade
Unionists

law.

after

ment of Justice

ican

and

Standard

its

allies

the

Wall

gave

Democratic

what

Street

charges of main¬

taining cartel relations with Ger¬
man trusts.
Just today the Amer¬

Wall Street wanted this slave la¬
bor act.
The Republican Party

Party

the

men

partners

Oil, "The master build¬

the

ers

cartel

the

German

Wehrmacht,

who made the war pos¬

sible."

movement.

anti-Communism don't expose the

have

part in

But well paid hucksters of

the*open-shopper's plot to destroy

cartels to sell American down the

it.

river for

•

give

all

support

our

labor's

fight
to
defend
itself
against this act.' In common with
other

sections

progressive

labor

the

movements

and
are

interests.
I

will

tell you why Mr. Lyons

-v•'■

Lenin,

machine and its re¬
placement by a new one."
His
American
disciple,
William
Z.
Foster, Mr. Thompson's boss, has
said, and again I quote, "We teach
the workers that only by violence

stories about Com¬
They are trying to set
for you the same booby trap in
which Hitler caught the German

revolution

the

can

accom¬

partisan Truman-Hoover doctrine

which is financing and fomenting

This

his

the

what

these wars, in China, in Greece, in
Indonesia, and in Palestine. Wall
Street
is 'busy
throughout the
World

helping

laborators

make

the wartime

can

anti-Fascists. They want Wall

Street

win

the

elections.

1948

col¬ They want to make the rich richer,

enemies

Axis

our

and

the

poor,

poorer

now,

and

our

years ago.

bolstering
Greece, a
China

Fascist monarchy in

corrupt

and colonial

donesia

and

tyranny

empires in In¬

Palestine.

Wall Street wants,

take Mr. Lyons'

latest hint on how to
munism. If you

fight Com¬

want What I think

and

they„

are

rebuilding

*A statement by Mr. Thompson
In radio

-6n,?

program,

broadcast

Broadcasting
1947.

"In

over

System,

My OpinColumbia

Aug.

28,

you

want don't be scared because

1 Yes,

Common Stock

preceding

($10

Communists

want

and

for the same things you

member

the

Germany.
here*

do.

fight

merely the American branch of a
world-wide machine for propa¬

Don't

let

happen

value)

Price 2521.50 per

ganda with headquarters in Mos¬
cow.
It's not a party. It's simply
Stalin's fifth column in the same

German-American

our

Hitler's fifth column in

midst.

must

time is

put

it bluntly

short.

because
Communists are

piece did

the

Kremlin

Copies of the Prospectus may he obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as
legally be distributed.

dealers in securities and in which such Prospectus may

mouth¬

few

for - the most
illiberal ideas and policies in all
human:: history—for the kind of

camouflaged

imposed by police terror
in Russia.
Democracy,, to the Communists,
means
a
one-party - police state
with its blood purges, its concen¬
tration camps, its forced labor and

system
on

Shields & Company

Hornblower & Weeks

Pacific Company of California

William R. Staats Co.

theory,

*A
radio

statement by

program
broadcast over

The Milwaukee Company

Sutro & Co.

Crowell, Weedon & Co.

Lester & Co.

Mr. Lyons in

"In My Opinion,"
Columbia Broad¬

casting System, Aug. 28, 1947.

Barret, Fitch & Co., Inc.

G. Brashears & Company

Bingham, Walter & Hurry

Bateman, Eichler & Co.

Pacific Northwest Company

Rotan, Mosle and Moreland

Rauscher, Pierce & Co.
J. Barth & Co.

have

practice it is
longer a specific set of ideas.
has become a blind allegiance
in

Schmidt, Poole & Co.

Walston, Hoffman & Goodwin

murder.

Whatever Communism may
been
no

Corporation

the helpless masses

mass

The First Boston

word

Re¬

tragic story of Nazi

par

goal. The very name of
.organization is a lie.
The
American
Communist
Party
is
neither American nor a party. It's

minutes ago. Lib¬
paralyze the great body of Ameri¬ eralism, to the Communists, is a

Allies of two
when
the
depression they are
-The Truman Adminis¬
tration and its GOP advisors are breeding, comes. If you want what
war

of California

;

real

workers,

politics, and

Corporation

his

munists.1

action in the realm of

Pacific Finance

speaker did not tell you. That's
why I charge that his talk was a
fraud from A to Z. He concealed

lying when they~ use words like
Four wars are already wag¬
They want to split the "liberalism,"; "progressive," "de¬
ing—raging in this war-weary people.
mocracy"
rind
talk about the
WorId. Wall Street shaped the bi¬ trade unions, defeat progressive

War.

plished."

that the

agent

150,000 Shares

state

geois

was

eign

September 4, 1947

NEW ISSUE

violence, destruction of the bour¬

Bund

Repeal of this infamous law.

prophet,

and I
quote, "Proletarian
revolution, is impossible without

sense

spy scares

••" =;'...

said,

and for¬

original

No.

their

and others of his kind repeat their
not

great, body of Americans
fear the menace of a third world

Their trade is

price.

white-washing these big business

forking for the speediest possible
The

tion. >.•_

Nuremburg

prosecutor

called

wanted.
Communists
helped to
build the modern American labor
We

Communist

If you think another de¬

pression is

real

the

conceal

week.

Jle's outside your door, not theirs,
strhis year the trusts Will rake in as a stooge of Marshal Stalin. Who
$17 billion^ in profits, $7 billion was acting in the interest of a for¬
above the peak war year of 1943. eign power then?
,N ' ; •
v
The men .In/Wall* Street offices
Of course, there are persons and
don't care how much you pay for organizations here in the United
eggs.
They want to profit, boom States who have dangerous for¬
or

meat trusts.

\ ! The

that

Schwabacher & Co.
Mitchum, Tully & Co.
Hill Richards & Co.

Irving Lundborg & Co.
Stern, Frank & Meyer

THE

(920)

16'

COMMERCIAL

FINANCIAL

ferent.* "National"

chases,
each
of
monthly income.

group

which

CHRONICLE

pur¬

cur¬

rent levels of the

market, annual
return ranges from 3% to 7 %%
with

the

ranging
82% in

The Henderson Brothers of Boston

100

By HENRY HUNT
"Ernie"

and

George Henderson love bargains and know a good
one when they see it. It was back in the early '20s
during the collapse
of German currency that your correspondent—then a
college sopho¬
more—first

Brothers.

At that time

making the

inflation,
many for
in

Henderson <§>—

the

met

most

they

of the

German

buying

goods in Ger¬
few cents that retailed

America

Their

were

for
$1.00 or
"headquarters" was

hole

in the wall off Scollay Square that
resembled a pawn shop in utter

eopfusion.
and

open

Counters

boxes

were

covered

filled

were

man

with

make.

Needing additional capital, the
Henderson

Brothers

from their

profits

friends, paying half the
interest.

•

borrowed

Your

put'up $200 and six
later, when a tariff bill

killed the lucrative racket, got his

back plus

money

$500 "in¬

some

terest"!
It

RAILROAD

also about this time when

was

"Ernie,"

obtained

maybe it

one-week

was George,
option to pur¬

chase for $3,000 a Sunbeam
(Eng¬
lish) auto from the First National
Bank of Boston, which had ac¬

BOND

quired

closure.

through

loan

fore¬

Three

days later, the
Brothers found a buyer at
$4,000
a buyer who
happened to be a

Group Securities, inc.

Vice-President

the

First

are

high grade stocks would have to
rent

prices to sell on. the
ratio of price
to earnings

the Henderson Broth¬

doing today?
They're doing
all right, it would
seem, control¬
ling the Sheraton Corp., a hotel
holding company, and the World
prospectus

request

from your investment dealer

Distributors Group, Incorporated
63 Wall

Street, New York 5, N. Y.

Investment Trust,
with the fabulous

turning

over

50%

ing appreciation,
tion in

mutual

record
a

fund

re¬

includ¬

year,

for

the

six

include

prices

1938,

that

the

have been purchased with

earning

yield

that

the

present.

now

interest

that

can

has

last

not

eighteen

existed

during

since its incep¬

1931.

tal

recent

Investors

ation

out

that

its

net appreci¬

distributions,

1937 market

whereas

from
the
high to July 15, 1947

the

Dow

Jones

Indus¬

trial

Average declined nearly 5%
during the same period.

Similarly,

•

with

Corporation

issuance

Calculator

of its Program
dealers. * This sell¬

In¬

ing gadget enables the dealer to
determine quickly the dollar di¬

versification, security diversifica¬
tion, and income return

Prospectus?
your

upon

RESEARCH

24 dif-

same
can

record

boast

Few

Things

Seem

Impor¬

published by the Selected
Investments Company of

points out that

CORPORATION

some

eory

s20 broadway, new york 5. n.
y.

PUTNAM

Management; investment
com¬
panies to its legal list for
/trust
investment but limited their
use
to

FUND

Chicago,
"Nebraska, which

time ago added
securities of

trusts

moves

over

$50,000,

that limitation.

now

re¬

Investment

companies registered under Fed¬
eral Investment
Company Act and
qualified for sale in Nebraska

d&odon

are

eligible for trust investment
with¬
any limitation or other re¬
quirements."
out

eystone

Prospectus upon request

The

Putnam

Fund

Distributors.

Ino

Rnotnr

cents

1947

Dividend
share

amounting to 20
payable. Sept. 30,

stockholders

Sept. 17. Ten cents

Certificates of Participation in

Fund

has de¬
clared its 71st
Consecutive Quar¬

terly

/.Funds

•

Wellington

per share was

■

any

the

sec¬

event
case

the

were

intentionally.

defendants

consent

The

the

missed.
ROBERT N.

COMPANY,
Corporation,

basis

and

the

WILKIN, D.J.

For the Securities and

record

Exchange Commission
(Signed) LOUIS LOSS
Louis Loss, Chief Counsel
Trading and Exchange Division
(Signed) FRANK D. EMERSON

agreement of

Frank D. Emerson

the basis of the
representation
said defendants that

the

they

have not

directly

indirectly

•

Franklin

ex¬

Entered Aug.

connection

with

they

knowingly

gage in any acts or practices

en¬
con¬

stituting
violations
of
Section
7(c)(1)
of
the
Securities
Ex¬
change Act of 1934 or Regulation

System

under

all

stances

the

thereunder,
facts

and

circum¬

surrounding this action, it

per

share from net realized
securities
profits.
>
\
The Parker
Corporation of Bos¬
ton points out that
from June 30,
1938 to Dec.
31, 1946, shares of

shown
value

Investors

net

increase

Issue Marketed

By Eberstadt Group
F. Eberstadt
a

38%

for

Fund which

the

relies

have

77%

Vassar
on

Plan

less automatic formula.
National
lished

Notes

...

No.

National

Research

gain of

424,

pub¬

Securities

Corporation, includes
.

tabulation

metal

&
a

stocks

the

over

same

period

current

110%

last

prices

are

year

31%

group

made
ber

Co. Inc. headed

underwriters

public

offering

30,000

cumulative

preferred

which

Septem¬
of

$3.75

and

stock

30,000 shares of common stock of
Westvaco Chlorine Products Corp.
The preferred stock was offered
$98.50

per

dividends and the

and

-The
will

plants

$33

V;;\

proceeds

accrued

common

share.1 '

per

used

the

financing

complete

new

under construction for

now

soda ash and insecticides, for ex¬
panding production of other prod¬
ucts and for working capital. The
company is an important producer
of

compared with

19, 1947.

Weslvaco Chlorine

declared from undistributed ordi¬
nary net income and ten cents

Incorporated

Powers

the

purchase or sale of securities for
approximate 1 y- twenty-four
months and since a date
approxi¬
mately two months prior to the
filing of this action and that

serve

Attorney.

credit whatever
Richard Brown or First
any

will not hereafter

—

(Signed) FRANKLIN B. POWERS

Mahoning

tended

below 1946 highs.

(Series B1-B2-B3-B4)

element

Exchange Com¬
mission, plaintiff, and Joseph G.
Attorneys
•
Butler, 111., et. al., individually For Joseph G.
Butler, III, et. al.,
and
doing
business
as
Butler, individually and doing business as
Wick & Company,
defendants, and Butler,: Wick & Company

although

BONDS

that

Consented to:

/Defendants
the

and

purposes
of this judgment
only. '
y
(2) The action is hereby dis¬

MAHONING

action

extending

Brown

foregoing finding and conclusion

BROWN, and

fact

Butler, Wick & Company,

Ohio

1934

Mahoning Company. With¬
determining whether as a

violations

said

JOSEPH G. BUTLER,
III, et al.,

the

for

individually and doing business

FIRST

Richard

have

finds

EXCHANGE

for the portfolio of Na¬
tional Metal Shares. It
shows that
first half
earnings were

■M

investing their capital

matter of law intent is

Plaintiff,

RICHARD

7(c)(1)
Exchange Act

not committed

selected

■

AND

defendants

of the offense under the said
tion or regulation, the Cohrt

COMMISSION,

record

INVESTMENT FUNDS
Y

said

only
Notes

Custodian

out

Court:—

COURT

said

Section

Regulation

credit
First

T, promulgated by the Board of
Governors
of
the
Federal
Re¬

Legal for Trust Funds
tant,"

SECURITIES

mutual

better perform¬
than
Fundamental
a

during the past decade.

"These

from

period.

funds
ance

request from

investment deafer,

NATIONAL

Industrial
Average advanced 99V2%
during
the

ac¬

Civil Action No. 23475

SECURITIES

Company in

Fundamental

new

Research

the

DISTRICT

The

the Securities and

25%, including security

profits

and

complete text

judgment of

THE

points

following is

tne

this

bulletin, Fundamen¬

shares have shown

was

DISTRICT
OF
OHIO EASTERN DIVISION

years.

Fundamental Outperforms Dow
Jones Industrials
In

(1)

violated
Securities

NORTHERN

the

Program Calculator vestors had
been purchased at the
in the field of 1942 low, an
appreciation of 152%
mutual fund
selling was intro¬ was
shown
on
July
15,
1947,
duced recently by National Secu¬
whereas the Dow Jones

rities

relationship

The "National"

Something

The

ob¬

tained from high grade
corporate
bonds. This also is a

that

injunction

made permanent and that the
tion was dismissed.

high

-provide equity
earnings about five times as large
as,

Regulation T,

years,

astonishing is the fact

stocks

and

depressed
1931, 1932,

1942, we can find no
period, other than during recent
months, in which stocks might
an

unintentionally

THE UNITED STATES FOR THE

and

Even

violated

7(c)(1) of the Securities
Exchange Act of 1934 and

same

war.

stocks

have

Section

aver¬

"During the last eighteen
which

cur¬

preceding

years

entry into the

our

ers

approximately 70% from

age,

Butler, Wick & Co., Youngstown, O., had violated
unintentionally
the margin regulations
imposed by the Federal Reserve
Board and
that an injunction in the case was
made permanent.
It appears from
the
following statement of the«>
judgment of the Court that
al-,is hereby adjudged and
decreed
though the defendants were held as follows:
to

earnings, the value of

stocks commanded

statement based on
Judge Robert N
Ohio, held the firm of
a

Under the above caption Hare's
states: "In relation to esti¬

such

Aug. 28,

reports was made that a decision rendered
by
Wilkin of the U. S. District Court of
Northern

press

—

Ltd.

rise

In the issue of the "Chronicle"
of

Na¬

tional Bank of Boston.

What

purchases.

group

"Opportunity Is Still Knocking"

corre¬

spondent
months

stocks. More than

different issues underlie each

these

mated 1947

flash lights, razors, fountain pens,
cameras,
binoculars,
automatic
pencils, and other goods of Ger¬

more.
a

security diversification
from 58% in bonds to

common

Margin Case Reported Erroneously

affords

Based

Thursday, September 4,: 1947

industrial chemicals

alkalis

and

solvents,

chlorine,

magnesium

chemicals

including

phosphates,
and

barium

and

insecticides, in-,
eluding DDT. Plants are operated
in South
Charleston, W. Va.; Car¬
teret, N. J. and Newark and Mo¬
desto, Calif.
:.Net

sales

for

the

six

months

ended June 28,

1947 totaled $11,874,744 and net profit for the pe¬

riod

was

with
the

$1,264,408,

$8,784,386

compared
$549,144 for

corresponding period of 1946.

The company's
of

and

outstanding shares

$3.75 preferred stock

mon

stock

listed

are

York Stock

and

com¬

the

New

Exchange.

PREFERRED STOCKS
(Series KJ-K.2)

(Series

What Do Communists

WELLINGTON

COMMON STOCKS
S1-S2-S5-S4)

Really Want?

tJ^FUND

(Continued from page 15)

Prospectus from
your

local investment dealer or

MUTUAL

INVESTMENT FUND

INCORPORATED 1928

Tke

Keystone Company
50

This

HUGHW. LONG & CO.
JNCO#»0«AUC>
48 WALL

2500 RusS

BVda

San

Francises 4

20c

per

(10c from ordinary net income and
10c

from

net

realized

profits) is payable

STREET, NEW YORK

ANCIUS

dividend

stockholders of

Sept.
record

Philadelphia

Sept.

chaos, all
that they can.

17.

President.

let

rre

make

didn't

German-American
our

1947

point.

to
the

the

one

think

necessary to invite officials of the

30,

WALTER L. MORGAN

vital

securities

5. N Y.
fur

isolationism,

new

all

warfare

In conclusion,

Quarterly Dividend

Congress Street

Boston 9, jM-assachusetts

class

71st Consecutive

of Boston

encourage
churn up

Bund

use

national radio facilities.
we

extend

that

Why
privilege to

officials,of the Russian-American
Bund?
That's something for all

Americans, including radio
tives, to think about.

execu¬

THE

Number 4626

Volume 166

Purchasing Agents Report Continued

Estimates New Home

High Production Level

United

for possible change in trend if export volume declines.

But look
See

Construction of

Greatest

than 50% greater than in 1939,

last year was more

Syndicate
^

survey

of housing con¬

struction just released.

increase

pver

1939

over

increase
was

housing

the

South

Atlantic

home building over 1939, while
-j several showed marked decrease.

four

states, where more than
times as many units were

built

1946

the

prewar

England, the. East
North Central states, West NortL
Central and Pacific Coast, build
In

year.

San
Francisco, showed
a
de¬
when
According to a composite opinion of purchasing agents, compris¬ civilian home building got undpr crease of about 20% under 1941 in
ing the Business Survey Committee of the National Association of way late in the year, was 410%. the number of units built, from
Purchasing
Total new housing units built jn more than 7,800 to about 6,150.
quickly change to critical or near- these
Agents,
key communities in 1946 Peoria, 111., built only about 15%
critical with any sharp upswing
as many homes in 1946 as in 1939,
t. h e a d e d
by
was approximately 412,455 against
of domestic or foreign demand, or
Robert
C.
101,511 in 1945. *'
j-: slightly more than 200 compared
could go to easier supply with de¬
Swanton,
with nearly 1,500.
Other places
At the same time, average cost
cline in demand.
showing decreases from 1939 were
:
Director of
Price reductions: alcohol, tur¬ per unit has increased by 45%,
i Purchases
of
New York,
Kings and
from about $4,725 in 1939 to $6,870 Bronx,
pentine, fats and oils, some lum¬
Queens counties in the New York
the
Win¬
in 1946.
ber,
menthol,
cotton, synthetic
chester ReCity area; Chattanooga and Knoxr
There has also been a sharp
resins, rubber, steel scrap.
ville, Tenn.; Jersey City; PhilaT
peating Arms,
Price increases: coal, coke, fuel swing away from apartments to
Corporation,
delphia; Tulsa, Okla; El Paso,
oil, corn, wheat, fine papers, steel. one and two-family homes, the Texas, and New Orleans.
there
is a
Soda ash tight; sheet and strip Investors Syndicate survey shows.
distinct
note
Areas in which increased home
The

Building 50% Above 1939

homes in 115 key metropolitan areas of the

according to the annual Investors <$>-

noticeable change in price trend, with exception of coal
•
:

and steel.

States

new

(921)

CHRONICLE

FINANCIAL

COMMERCIAL

1945,

New

ing was about double the
level, while increases of about
50% were registered in the Mid
die Atlantic, East South Centra;
andTtocky Mountain areas. In ihe
West South Central region build¬

■

ing fell to

only half of

the

level.

'3J
;

busi-

well into the fourth quarter.

August, due to vacations and extremely hot weather, the "slight

.downward
trend"
reported in
June has changed; those reporting
while the majority,

timism is coupled with a warning
recommending caution.
v
Decline in export volume

and

domestic conditions dras¬
....

Except for coal, steel, and steel

particularly

fabricated

items,

to hold down ad¬
is noted as a healthy sign

ibut the tendency
vances

.steel have not set off a

Coal. and

general price inexpected.
Competition is becoming more
effective each month; substitutes

sharp spiral of
ilation

how

Syndicate,
"indicate
seriously rental restrictions

have

affected

Investors

the

construction of

Cin¬
cinnati
Cook
County (Chicago), 111.;' Milwau¬
kee; Minneapolis, St. Paul; Atlan¬
ta; Nashville and Memphis, Tenn.;
Camden, N. J.; Birmingham; Palm
Beach and Miami, Fla.; Ft. Wayne,
Gary, Indianapolis, South Bend,
and Mishawaka, Ind.; St. Louis;
Richmond, Va.; Greensboro-High
Point, N. C.; Kansas City; and
Toledo,
and Dayton, Ohio;
Akron,

many

higher-cost products are available in greater volume.
;■ ■'

■■-'I

•'

■.

space.
a

Whereas it cost about $3.50
foot to build in 1939, in
was around
$6 to $7—an

square

1946

increase of around
"The

70%

over

come."
that there has been a sharp shift
Investors Syndicate is one ; of
construction in 1946
Woolen mills picking up after
away from public housing.
Al¬ the largest holders of home loans
was exceedingly
spotty, the sur¬
though 13% of all housing conr
sharp decline in second quarter
in the United States and Canada,
vey showed. Despite the fact that
structed in these key areas in 1939
Both skilled and unskilled labor
demand was great in virtually all
was publicly built, only
5% was with total holdings of more than
short in several areas. 1
•
of the centers studied, a number
I $225,000,000.
of them showed little increase in public construction in 1946.
many years

costs.

Housing

Canadian

Over-all
better

than

business is
Pur¬

last reported.

chasing Agents feel
off on present high
immediate future.
Prices have

it will leve
plane for the

increased, particu¬

larly in domestic items.
Inventories
better
with trend to

balanced,

reduce.

Employment high, indications o
higher levels.
Purchasing
policy:
"hand-tomouth" to 90-day commitments.
even

SUMMARY OF ANNUAL

Snyder Releases

REPORT

INC.

BROTHERS,

REEVES

months. Those previously reduced to operating minamums are maintaining that posilion. Further reductions are being
past several

made

become

materials

obtainable
readily
V schedules. ...»
A

■

Manufacturers, Finishers and Converters of

Following the midyear 'inven¬

tory taking, industrial inventories
eontinued their downward trend
at about the same rate as for the

...

greater

shorter

number report raw
are now in
production re¬

materials inventories
balance

with high

quirements.

announced on
Aug. 29 that Italy has been- added
to
the
list of«countries
whose
blocked accounts may be released
under the certification procedure
of General License No. 95.
The
unblocking of Italian assets in the
United States is provided for in
the
overall financial agreement
recently concluded between the
United
States
Government and

Textiles

Secretary Snyder

This

report covers

the first full year

of operations of the Com¬

and its subsidiaries since completion of the integration pro¬
ceedings in 1946. As at June 30,1947 the Company's consolidated
balance sheet, as audited and presented in the annual report to
stockholders, shows total assets of $21,936,473.42; total current
assets of $15,717,073.31; total current liabilities of $4,687,729.73
pany

Government of Italy.

the

Today's step was taken after an
exchange of letters between Ivan

M. Lombardo, Chief, Italian Eco¬
Policy
nomic Delegation, and Secretary
indication of longer- Snyder similar to those written in
term commitments evidenced in connection with the defrosting of
the June reports
are not con- the countries previously named in
firmed in August. 90% are under
that license. Copies of the letters
three months, with a high proportion in "hand-to-mouth" to 60- are available at the Federal Re¬
serve
Bank of New York.
The
>day limitations.

and earned

surplus of $12,362,082.49.
1
;

;

J. M, Reeves, President.

Buying-

The slight

■;
-

speculation is reported and
-extreme
caution is advised by
No

In some instances,
yesterday's "shorts" may be to¬
day's "longs," but a close watch
•of
sales estimates and covering
many

buyers.

«only for scheduled production are
the

general policy.

Italian

out

which will
investigative and
responsibilities under

certifying

the

the letter of assurances

and Gen¬

eral License No. 95.

Specific Commodity
-

Changes

decline
interrupted by the
sharp upswing of coal and steel
prices, considered by many to be
mildly inflationary, but the spurt
Has not reached other commod¬
ities not materially affected by

^vas

Joins R. H. Johnson

Fiscal Year ended June 30, 1947

Gross

rudely

Special

to The Financial chronicle

SPRINGFIELD,' MASS.—
Robert H. Burns has joined the
staff erf R. H.
Johnson & Co.,
Third National Bank Building.

With Baumann Inv.

coal and steel.
*

table

oils.

Some

these

could

„

(ypecial to The Financial

226

provision for State and

Federal taxes

Provision for State

and Federal Income Taxes

..........,

3,127,161.54

Net Profit—before

minority interests

•.. •

$4,131,330.03

Net Profit—before
on

Carondelet Street.

$7,258,491.57

income

2,280.04

••••••«I*••••fiMMii timi*<••«••• •«•

Earnings per share on Common

$4,129,049.99

Stock.... * $3.63

of the Annual Report, which includes the financial
statements of the Company, may he obtained upon request.

A copy

Co.

Chronicle)
yNEW ORLEANS, LA. — Victor
ply is coming into balance with
M. Guest has been added to the
demand, are: copper, brass, lead,
lumber, alcohol, plastics, vege¬ staff of Baumann Investment Co.,

4 ---Important changes, where supr

$49,025,066.01

Sales, less discounts, returns and allowances..

Staff

The trend to level off or

STATEMENT OF INCOME

Minority Interests

CONSOLIDATED

Government has not yet

designated the agency
carry

CONDENSED

Net Profit
-

to 100%.

increase in building costs

Inventories

actual

ducing areas and otherwise cut¬
ting corners, per square foot costs
tell
the
actual
price of living

for
*

the

construction

Canada

products, the price trend has not
changed noticeably. The full impact on prices from ,these com¬
modities has not yet been felt,

■:

figures," declared E. E.

rental housing. Although the de¬
mand
for
apartments
is very
principally steel, ac¬ great, builders cannot find it prof^
few reporting lower itable
to
erect
multiple-unit

Commodity Prices
J

building was most marked in?
eluding Baltimore; Cleveland,
Columbus,

housing

costs, said Investors Syndicate, is
a
comparison of the cost per
square foot. While some unit costs
can be lowered somewhat by re¬

fewer

30%

were

the past several years," said
Crabb, "has been inevitable in the
light of increases in commodity
count for a
prices, transportation costs and
employment.,; ;
apartments
and
have
concen¬ Los
labor costs, and the scarcity of a
Angeles.
Housing construction is boom¬ trated on single-occupancy homes
Cities which built approximate¬ number of key items essential in
for sale.
The small volume of
ing, while business construction is
ly as many housing units in 1946 completing a building. In addi¬
lagging.
Some reports show
apartments built during the war
tion, strong demand for housing
as .in 1939 include Boston, Provihold-up or abandonment of large and under rent ceilings will un¬
indicates there will be no relief
industrial expansion programs be¬ doubtedly affect the housing situ¬ derice, Detroit, and Seattle.
Investors Syndicate also found for a number of years."
cause of high wages and materia
ation for
to

disturbing foreign situations could
tically in a few months.

were

home built as

Seasonal declines and lack

ment.

60%, indicate no change in the
high level of production prevail¬
ing over the past several months
However, the expression of op-.

change

"These

there

many

Crabb, chairman and president of

Many com¬
highest peacetime enroll¬

of materials,

increases now run two to one over

;

1939, there
apartments.

reached.

previously

1946

cent report increases, with
others
maintaining
high levels
ment

than twice

per

the decreases,

While

Employment is up. Twenty-five

Despite the irregularities of pro¬
duction and shipments in July and

improvement

Employment

Robert C, Swanton

their continu¬
ance

for

considered good.

and for

tions

;

bottleneck in many indus¬

Outlook

condi-

ness

tries.

current

general
.

steel

optimism

of
on

indication

Best

increase

REEVES BROTHERS,

INO

54 Worth Street, New

York 13, N. Yj

the essential
lubricant of the world's foreign trade machinery. In its absence the
wheels of international commerce are grinding slowly to a standstill.
Not only Britain and Western Europe but also the comparatively
prosperous British Dominions and the countries of South America are
compelled to introduce restrictive foreign trade measures in the
universally acceptable medium

}

adequate supply of<$

International

The

which

Fund

Monetary
to fill

destined

was

the

breach in the difficult transi¬
tion period from war to peace¬
conditions

time

forded

has

far

constructive

This

whatsoever.

linked

other

exchange.

rency.

devised

ir
also

suffers

There

now

is conducted

basis of

com¬

keep in
machinery.

the

lies

possibility of

motion the existing
has always been

ideal foreign

method

problem of multilateral currency
convertibility is a practical

ultimately to produce suf¬

further

ada which

area

nor

continuing the present

indiscriminate

Bluff

welltrick

they will be

repayment before maturity,
hope that their creditors
be
duly
impressed
and
not therefore, avail them¬
More

often

not this time-honored

than

bluff

"Your money is due in

off.

comes

months'

two

offer.

the

selves

but

time,

you

have it tomorrow if you

can

want it,"

brings forth the reply:
my dear man, why should I

usually
"But

it?

long

with

it is safe

know

Keep it

basis

the cart before

confess

like!"

as you

that

he had

lated.

ternal and external sections of the

miscalcu¬

the radio,
announcing the Government's de¬
pathy with the clouded interna¬ cision to suspend the converti¬
tional situation.
Free funds also bility of sterling, Mr. Dalton said
eased to 8^%
following the de¬ he had expected that the holders
clining demand on tourist ac¬ would not avail themselves of
market continued to

but

range

there

activity

gold stocks

was

their

right to convert.
statement, he admitted

nar¬

con¬

By
that

this
the

decision not to

apply for a post¬
ponement of convertibility rested
not on any inherent economic

speculative

result

his statement

in sym¬

Stocks continued in

siderable

CANADIAN BONDS

ease

favor¬

able

PROVINCIAL

The

):■! ?

change

A. E. AMES & CO.

tournament
the

Country

will

course

Club

City, Long Island.
first such

TWO WALL STREET

the

held

causing

Garden

attention

Government
Provincial

Municipal
Corporate

the

rate

will be
of

this

for

sterling

than

sidered

would

absolutely

They

needed

what

gance. But the

materials

which

Britain

was

being

his

word and hastened to collect
their claims while the
going was
good — which was not for very

long.

deliver.

That

weakness.

the government realize that
what
needed for

Francisco

the

Other members of
committee

the

include

hundredth

thing

tourna¬

•

viduals

Louis J.

but

John J. Gillies Dead
J.

Gillies,

partner

fair to

disastrous

of 67 after

illness of

who

pany,

sojourning
that

saw

im¬

mediate reces¬
sion

ness

ahead,

and

one

them

Treasuries

and

And it is perhaps
assume that they

fairly well acquainted with

busi¬

blamed

e c o n

omists

wrongfully
predicting de¬
pression." He
stated
Charles E. Wilson

come

saw

likelihood

that

would

even

before the press

turning to the Gold Standard in
1925 was subject to much Criti¬
cism.

It took many years

before he

materials
also

city,

stated that he

not,

may

prices

down for the present,

unit

costs

are

first

Mr.

six

Wilson

Electric

that

though we

this

months

profit than

no more

did

less

than

General

announced

was

contemplating con¬
siderable West Coast expansion.
The 9,700 employees on this coast
would grow to more than 16,000
next year and the San

Plutonium

Jose, Calif.,

pilot

plant operated
government contract, oc¬
cupying two acres, would eventu¬
ally spread over a 57-acre tract
under

owned

now

R. L.
Special

by the company.

Day & Co. Adds
to

The

Financial

BOSTON, MASS.
Foster, Jr. has been

lowered.

staff

Referring to the electrical busi¬
ness, he said:

the

"On top of

$200,000,000."

production,

70%. Taxes are

$537,000,000 worth of business
the

and

mass

result

year, we made
in 1940, when

upward spiral of prices
might continue "unless food costs

housing costs stop soaring,"
unless, through technical im¬
more
efficient
provements and

"The
did
in

are

up.

and that an

Devonshire
New

Street,
and

James

added to the

Day

York

Chronicle

—

Co.,

members
Boston

Ill

Stock

Exchanges.

recent increase in steel

sev¬

For

experiment

all, have been wasted.

everything else, the
prices has
comments complained of by Mr.
jumped manufacturing costs. Our
Dalton had appeared.
j- j • average prices are up about 35%
Mr. .! Churchill's
since the last pre-war year, .1940.
action in
re-

Bacon, Stevenson & Co., New
York City, died at his home at the
eral weeks.

with

Central Banks.

the situation

John

time?

the

decision whether to
withdraw the sterling balances or
not rested not with private indi¬

evening..

ment

during the debate not for
first time,, but probably for

bluff, but
work, then the cost of the

serious

after

Daltonian

despitch to the New York "Times" from San
Aug. 28,""Charles E.„ Wilson, President of the General

deficit, of

men¬

not

Electric Com-3>

the dollar loan

other unfavorable facts

production.

According to

quacy
the

meeting the situa¬

tion

raw

C. E. Wilson Sees No Recession

But

being used up, of the inade¬
of the coal-output, and all

was

playing for pos¬
trophy donated

new

trade

at which

convertibility crisis made

General Electric head blames
Washington economists for predicting
depression and holds prices will increase with
wages and higher
housing costs unless we have more efficient mass

blissfully ignorant of the
Britain's

If the

the

creditors, knowing

position, refused to be im¬
pressed. They took Mr. Dalton at

un¬

able

his

only too well their debtor's finan¬

for

food

generous

cial

con¬

needed

must have made

Possibly the

repay

have

urgently

deceived by it.

debt, he sought to impress his
creditors by a display of extrava¬

was

pay
and

him¬

people

terms of the
Egytian, Indian and
settlements were part of
the hard-pressed debtor's
bluff.
At the same time as
pretending
to be willing and able to

unavoidable.
to

few

Irak debt

they

dollars

were

statements

Dalton

the

foreign claimants

never¬

holding

such

one

them think.

payments, most

holders

Fre¬

others had been in¬
clined to be
impressed, the reck¬
less extravagance with
which Mr
Dalton gave away his dollars
to

really strong currency in its
own right and not
merely enjoy¬
ing for a short time the reflected
glory
of
the
dollars
obtained
through its convertibility. Even
reason

was

Even

most

make

who

opportunity
for converting their
sterling into
dollars, simply because they were
in urgent and
imperative need of
dollars.
Suppose for the sake of

balanced

reserves.

Probably Mr.

self

holders of sterling could have been
induced to forget all about the

seen

for

liquid

not

true.

get

then

foredoomed to

probable, how¬

substitute
and

does

his

argument that sterling in 1947

were

seeihs

quent repetition by
officially in¬
writers of assertions
such
as
' sterling is now
dollar-hard"

away with his bluff, it would not
have saved his position. Even if all

of them would have taken
theless the
earliest

possible.

spired

valuation.

British balance of

ade¬

What Mr. Dalton failed to real¬
ize was that even if he could

seriously believe that but

tioned

age

for

were

strength

size

years.

Drevers, Jack Feinstein, Walter E.
Kimm, Sr., and Jerry Re.

CANADIAN
SECURITIES

his

soon

quate

was

holders of sterling would have re¬

outing to be held since

a horseshoe
pitching
contest.. Prizes will be awarded at
a dinner in the

•

own

take

suc¬

deceiving them about

sterling

trade

himself

Wash-

there will be

Wall Street, New York 5

"some

by the club for the player turn¬
ing in low gross score for the day.
In addition to the
golf competition

•

could he

mained

session

COMPANY

had

ever, that they would have failed
even
in the absence of a
dollar
famine. 'Propaganda is no

for the publicity given to the de¬
bate on the economic situation,

It will be the

twenty-five

NY-l-1045

WHitehall 3-1874

to. consider

and
the
press
for
withdrawals by drawing

Garden

the club's formation last
April by
members who have held a
.seat on the
exchange for at least

nament

all

Parliament

Golfers competing in the tour¬

would

Loan

Curb

5, N. Y.

TAYLOR, DEALE

that

pretend

been

over

RECTOR 2-7231

has

City

INCORPORATED

debt

failure.

could

Mr. Dalton must have been only
changed
to
Thursday, Sept. 4, 1947, Frank E. .*00 painfully aware of Britain's
Herma, chairman of the commit¬ inherent economic and financial
ter on arrangements, announced weakness. On Aug. 20„ he made a
half hearted attempt at
today.
blaming
The

NEW YORK

external

capable of shouldering the addi¬
burden,
and
everybody

fore the date stipulated under the

date originally set for the
Golf Tournament to be

Agreement, and would ac¬
held by the New York Curb Ex¬ cept this gesture as the evidence
of strength that inspires confi¬
change Five and Twenty Club for
dence.
the entire
membership of the ex¬

in¬

Instead,

Tee-Off

CANADIAN STOCKS

foreign

gone.

gesture

In the
circumstances, Mr Dal¬
ton's efforts to
inspire confidence

tional

Coif Tournament

CORPORATION

ined
to

Change Date for Curb

MUNICIPAL

were

Dalton's

hold¬

ings

hardly have been
weaker. In spite of this, Mr. Dal¬
ton relied on his bluff. He
imag¬

drilling reports principally
from the Rouyn area of Quebec.'; benefit to Britain nor on any fi¬
nancial strength represented by
the possession of ample liquid re¬
sources, but solely on the assump¬
tion that holders of sterling would
be duly impressed by the gesture
of offering convertibility even be¬

'ML,

Most

annum.

realizable

was

position

Dr. Paul Einzig

the

per

easily

there

Standard,"

offer

something like £5 billions, most
of it floating debt. The technical

to happen when he restored the
convertibility of sterling in rela¬
tion to many countries long before
the date of July 15. But his bluff
was called, and on Aug. 20, he had

row

repay¬

adverse

vestments

This is what Mr. Dalton expected

count.

his¬

tory
as
"the
suspension of

Even

Mr,

the real position of
sterling, thev
would have converted
their

£ 600

the

It is

based

was

ceeded

was

known

estimated at something like

On this

in kind.

During the week both the in¬

Can¬

case, what did it matter
whether
they trusted sterling or not?

external indebt¬

balance

you.

ultimate

cash

thus placing
the horse.

ling bloc but is nevertheless vital-

•

Britain's

down

want

and

in the Ster¬

GOVERNMENT

world¬

bluff.

tain

the

strong technical position. In 1947,

eventually the entire
trading edifice could grad¬
ually be rebuilt instead of pursu¬
ing the present global schemes

figures neither directly

in the Dollar

consti¬

world

disability has been
situation

pool which would

foreign

millions

will

solid

has

concerted group.

anomalous

chequer

will

ment in

country and the British CommonA

was

Aug. 20 is cer-

expectation

situation

been given to the possibilities of
direct
negotiation between this

the

lor of the Ex¬

tiative in underwriting U. S./British Commonwealth trade with the

consequently the difficulty of
stabilizing sterling on a practical

the

are

dollar loans and gifts, this
country would thus take the ini¬

and

unable to meet their liabilities to

whole

wide

trading areas. Hitherto
primary objection to the "Key
Currency" approach has been the

Wealth

of debtors who know

system

Sterling

thought

found

been

Instead

the

Insufficient

has

tute the first step in the direction
of a universal exchange medium.

method of merging the Dollar and

basis.

Chancel¬

dollar

endeavor

British

the

ficient exchange to justify the im¬
mediate establishment of a U. S.

obvious that the key to the entire

weakness of the

ment made

currency.

means

plans it is essential to

yet in 1925,
trade was bal¬

edness, but £3 V2 billions of foreign
investments. The return to gold

Commonwealth

before embarking on fresh global

And

an¬

thus

and

essence

it down.

Britain's

would
permit
the
free
functioning of world trade.
However, within the British

question that time

the

lived

The

which

quence of its broad and somewhat
vague form.

the

sumed

anced. She had

whereby an adequate volume of
such
exchange can be created

conse¬

comfdv

farce.

cable

fundamental

History often repeats itself in a strangely distorted fnv
originally a tragedy is apt to recur in the form of a
The
i
the suspension of the British gold standard in 1931 is witnessed
once more—but
thisfime
was

cheap

by reason of its im¬
portant share of U. S. trade which

anticipated by most practical ob¬ exchange basis—a common world
In effect world trade
servers
who have always been currency.
Convinced
concerning the falli¬ today is conducted freely only
where it is possible to operate in
bility of the global approach to
U. S. dollars.
So far no practi¬
currency stabilization.
Moreover

fashion

LONDON, ENGLAND.

What

this country

the attainment of

the Marshall Plan which has been

Harder work.

Therein

was

British

Senior

™

form

support

however

the

groups.

the

scores

permitting convertibility

Dominion has the closest tie with

mon

af¬

both

hand

policy of British Chancellor of Exchequer in not postponing
convertibility of sterling
before) July 15, as a bluff to inspire future confidence in British
Says failure to maintain convertibility will make British realize need for
meeting situation b

Einzig

and

Multilateral convertibility of currencies constitutes

of foreign

Bluff Stsnd&vd"

By PAUL EINZIG

By WILLIAM J. McKAY

Thursday, September 4,
m7

Suspension of the

Canadian Securities

absence of

FINANCIAL CHRONICLE

COMMERCIAL &

the

(922)

Since

100%
of

then, labor has gone. up
(and labor represents 45%

every

dollar

spend)

and

With R. H. Johnson
Special

NEW

The

Wadsworth

Johnson
Boston.

Financial

Chronicle

BEDFORD, MASS.—Leon
is

now

Co.,
-

•

with

State

Street,

Sees Permanent Need fcr

Gold and Inflation
(Continued from page 4)

Reporter on Governments

Our

By JOHN T.

supply
which has already occurred.

inflation

income.

maturities in order to maintain

longer

Market

the

probably

would

They

money

not

in the recent past, are the longest eligible 214s, the 2Vis inclined to emphasize for public
consideration
the fact
that we
due 1956/59 and the intermediate-term 2s. . . . The 2%s due 1960/65
would be repeating what began in
are also being well bought.. ... The ineligible issues have been buoyant
with investors taking on the longest 2%s because of the belief that 1934, and with much more danger¬
ous
possibilities because of what
these bonds will be more attractive than the new issue of nonhas
already
been
done.
They
marketable bonds. . . . The uptrend in the restricted obligations is
would not want the selfish short¬
bringing .yields of these securities more in line with the return that
sightedness of their policy to be
is expected in the non-marketable issue. . . .
leaders, as

too

to be substantial for most
Treasury issues, there is not the same desire to step up and buy
ut advancing quotations as there was a few weeks ago. . . . The
high level of prices makes for some caution1 at this time. . .. Also
there is a feeling that important happenings may be witnessed in
is reported

demand

Although

future.

markets in the near

the mon«y

, * .

The feeling

is that the

announcement of the

to retard the monetiza¬
at a rapid pace since
September financing. . . .

happen in the money markets in order to com¬
trends and debt monetization is something that the
authorities alone must decide and as yet they are not ready to show
their hand.
Limiting of the credit base is considered by some to
be the crux of the looked for developments in the money markets. . ..
What is likely to

.
. This
was not as
of the inflow of gold
from circulation. .. ,

deposit institutions.

currency

CERTIFICATES AND

nouncement is made on

important part

injected into the picture by
the certificate rate to fluctuate, instead of repegging
slightly higher yield basis....
Treasury bill is

The

being watched

allowing
it on a

closely because there is a

the future.
shortest-term
than the

feeling that this security may be much more important in
It is being noted th^ a yield $f
the
issue seems to make that obligation much more attractive
...

0.766%^or

certificate.

(

...

gales of bills to the member banks by the Central Banks
would be one way to curtail the credit base and at the same time

HIGHER

debt.

monetization of the

cut down the

market will most

interest rates.

now on.

RUMOR MARKET

\
,

expected
some

that

•

com-*

had

been

upon

anything like the scale indicated
by the eventual growth of their
sterling assets.

sterling for making payments in

balances.

conception of the sterling

area

one

which has seldom been

properly appreciated abroad. The
connotation "sterling bloc" which

pay

gold. Do we

any

area

currency

to the release

in the world,

in free sterling of

accumulated balances and
removal

other British institutions, and be¬
the undefined,

came

highly elas¬

tic, adjustable system which de¬
rived its character and strength
not from conscious planning but

••

ease

that it would not be

necessary

explain

to the

treatment of seri¬
politic by ice

ills in the body

rosy

prosperity that might be

engendered
by increasing
the
price of gold would never be
worth the price that the American
people would

be
to
It is believed by

to the

"any

machinery of the sterling area in
its wartime trappings and to use
that
machinery for
negotiating
bilateral commercial and financial

price

people, and the selfish cooperation
of the commercial banks could al¬
most certainly be counted on.
This is a typical example of the

market. ...
one of the ways in which inflationary forces can be re¬
addition to higher interest rates, is by creating uncertainty

happenings in the money

This

and stimulants instead of
permanent cures. The short period

Operations," according to some observers, will
prominent in the not distant future as a supplement

''Open Mouth
much

their sterling

packs

...
'

stable—

been

to agree to make
loans to the United Kingdom on
called

ling

acquired

area

agreements with other countries.
It is, however, a school of thought
which can have little understand¬
ing of the conditions on
sterling area was built,

which the
little re¬

spect for the position of sterling
as a world currency and little ap¬

preciation of the position of Lon¬
as a great international bank¬

don

ing centre.

Keynes
effectively an¬
swered those who hold this view.
Lord

The surest way to

dismember the

inevitably have to

never

the

had before; a

basis

currency.

fully convertible

This was an inevitable

Convertibility could not be

loss.

and dollars
safeguarded and re¬
served for absolutely essential re¬

maintained when gold
had

quirements.
In a fight for sur¬
vival, convertible sterling was one
of the trimmings—albeit an im¬
portant one—that had to be

sacri¬

ficed.
The

sacrifice must surely

have

to be a temporary
and distasteful necessity.
Yet it

been

deemed

began to appear to some, both
outside and within the country,

pay.

Tillman-Whitaker Co.
ATHENS, GA. — Ti llmanWhitaker Co. has been formed

development that might have
it a character of perma¬
nence.
In the United States, for

as a

about

as it ever was.
Britain's external

what it had great today

statutory defi¬
tion 8
nition. But it also lost — through
of 1934, Amended Section 3700 of no fault of Britain—something it
the Revised Statutes), would not had always had before, namely,

ous

nonetheless, could still mean somewhat
higher yields for certain of the Treasury obligations, without dis¬
turbing the equilibrium of the government market too much. , . .
There seems to be a growing feeling that further price advances
in the long-term end of the Treasury market will be more diffi¬
cult from

to
in

In the United States, the fear
sterling, to hold their external re¬ that these arrangements might be¬
come permanent found expression
serves in sterling, fo convert into
sterling their other foreign ex¬ in the Anglo-American Financial
of December, 1945,
change earnings, and in turn, to Agreement
obtain any foreign exchange they with its repeated references to
might need by drawing on their the free availability of current

said

New Deal type

...

interest rates,

Low

cause

link between their currencies and

to go to Congress (Sec¬
of the Gold Reserve Act

likely be the focal point
undoubtedly will be broad enough
to have an influence upon the trend of prices of the longer-term
obligations.
Higher interest rates are in the making and sooner
or later they are bound to be felt in most sections of the government
list.
This, however, will all take place within the limits of low
.

reasonably

had

Colonies

and

minions

not rigidly unchanging—

though

necessary

operations, the effects

for future

the

sterling area and destroy sterling
previqusly occurred, in its lbn£
as
an
international
currency
to $50—or more, why not?—would
history.
But, until 1939, the es¬
be to continue into the
balance the budget for the mo¬ sence of the sterling area mech-l tvould
ment, including the payment 'of anism was the complete and un¬ peace the defensive mechanism
into which the sterling area had
the soldiers' bonds and our British
restricted convertibility, or "exto be converted during the war.
and other foreign loans. All this
pendability," of sterling through¬
the need for defense may be as
would be accomplished with so out the world.
In 1939, the ster¬
much

. . .

RATES IMPEND

While the short-term

The members of the

pleted—in other words, if the Do*

that now suggests a
from the very needs out of which
to be paid by the it
grew and which it helped tc
United States Treasury for gold.
satisfy. The sterling area acquired
But this device as a means of
more
recognizable shape
after
sustaining the heavy expenditures
sterling left gold in 1931 and when
of our government has long been
many countries, both within and
known to be available and has
outside the Commonwealth, faced
long been under consideration in with the choice of following gold
government circles as a possible or sterling, chose sterling.
That
"easy way" to avoid the difficult was an
amalgam of conscious de¬
problem of decreasing govern¬ cisions
which
crystallized
the
ment expenditures and balancing
sterling area or sterling bloc more
the budget with real income.
definitely than anything that had
The increase in the price of gold

market, and some clues as to
be forthcoming when the an¬
the handling of the Oct. 1 maturity. . . .

Uncertainty could be

higher

expected move in the money
likely to take place might

the

what

successful) as had
and the return of

believed, will play an

impelled by reasons

were

maintain

London rumor

NOTES

certificate rate, it is

The

•

war.

transactions

the

of convenience and self-interest to

gold that badly?
above it is only a

want the

the authorities resorted to the partial redemptions
certificates in order to restrict the loaning ability of

been anticipated because

because

them more for their

In the past

the

resources

our

of bills and

of the sterling area

mobilized

discrimination
arising from the so-called sterling
came to be applied to it after 1931
area
dollar pool."
Those condi*
brought with it a suggestion of inmore to foreign countries and pro¬
tions were accepted by the British
s u 1 a t i o n
and
discrimination
viding them with the means of
negotiators and the arrangements
against others which, in effect, it
making payment. In other words,
which were due to culminate on
never possessed until the compul¬
from this point of view the in¬
15th July last gave expression to
sion of war finances demanded it.
crease in the price of gold would
them.
There may be a school of
In its evolution it followed the
be just another means of enabling
thought in Britain which would
line of development of so many
other countries to acquire more of
have liked to maintain intact the

bat inflationary

by the fact
price would

which

higher price we pay for their
gold would increase their dollar
purchases in this country, but that
is just another way in which we
bolster
our
economy
by selling

CREDIT CURBS

sterling area is more and
reverting to what it was be¬
fore 1939: a wholly voluntary, un¬
defined
association of countries
The

the

of total

give them increased dollars which
they want for exchange purposes.
Of course, it would result that

monetary authorities will take more

trend of commodity prices
and consumers' loans, particularly after the expiration of Regulation
W on Nov. 1.
The inflation factor is of paramount importance to
the powers that be and there is no doubt that steps will be taken
from the monetary angle to retard this trend, . . ,
.

increased

been

1931, and the institution of the effect made a contribution to the
"Sterling Bloc" during the war war effort on a scale that might
have caused some apprehension if
years, the article pictures the fu¬
ture of the sterling area in the the figures involved had had to be
envisaged before, and not after*
following language:

problems. Canada,

be* improved

our

resources

area, through their readiness
accumulate sterling assets, had

gold standard by Great Britain in

could get $50 an ounce for
the economy of all
those countries which have gold
that

the

following the abandonment of the

it." Moreover,
would

the "Future of the Ster¬

had

if they

. ,

Review," the quarterly pub¬
the great private banks of

ling Area."
After describing the
development of the sterling area

gold mines which could afford to
take out greater quantities of gold

should not be lost of the

Also, sight

article

and other parts of
Empire have great

British

the

England, contains an anonymoui^-

South Africa,

vigorous action in the not distant future
tion of debt, which has been going on
the

The August issue of "Barclays Bank
of Barclays Bank, Ltd., one of

gold would unquestionably be
help in dealing with

their financial

J
;~-

lication

welcome

non-marketable bonds.

issue of

a new

of view of other

Urges British export drive for renewed

currency.

convertibility.

countries this increase in the price

'
'
Higher short-term rates in conjunction with impending develop¬
ments are quite likely to have an important bearing on the trend
of government security prices, according to some well-informed fol¬
lowers of the money markets. . . . It is believed that only part of
the picture was unfolded in the September financing and the offering

FUTURE IMPACT

broadly publicized.

From the point

"Sterling Area"

;;

fully convertible

now

badly needed because of the in¬
crease in expenses caused by the

spite a minor let-down in activity. . . . Demand is reported to be
sizable as shifting of positions continues to go on, with the trend still
into

consequent

earnings,

bank

increase

securities hold near their top levels de¬

of government

Prices

CHIPPENDALE, JR.

the

and

investment

Barclays Bank, leading British financial institution, holds it should
be restored to its status before the war, when the basis was a

assets available for

increased

the

(923)

& FINANCIAL CHRONICLE

COMMERCIAL

THE

Number 4626

165

Volume

threat

The
re¬

is possibly more dangerous
than it was in the heroic days of
serves

the pres¬
less artifi¬
cial or transient causes than those
with which Britain was contend¬
ing before lend-lease and mutual
aid came to the rescue.
But the
way to meet that threat is to rem¬
edy the fundamental causes of
Britain's present balance of pay¬
ments difficulties—to hasten the
productive effort of the country
to
canalize every possible
re¬
source to a renewed export drive,
if necessary to make drastic cuts
in certain imports and in the level
of domestic consumption.
The ills
will not be cured by raising the
outward defenses, whether they
be
tariffs, exchange control or
discriminatory financial arrange¬
ments.
The return of sterling to
current convertibility and of the
1940

and 1941, because

sure

today arises from

College Ave¬ example, it was widely feared that
Britain
would
never
willinglv
James L.
sterling area to something like its
forego certain advantages which
Talk about what might happen or could take place does not
classic conception are admittedly
Whitaker, President; Thomas M.
the wartime operation of the ster¬
Tillman,
Vice-President and
help to create confidence and this is what the money markets
acts of faith; but they are acts of
ling area mechanism had con¬
have been up against in the past, when "Open Mouth Operations"
Treasurer;
and Robert G. Ste¬
ferred.
Among these, that which faith that must be justified if
were going strong....
phens, Jr., Secretary. Mr. Tillman interested the United States most
Britain is to retain her position
was
formerly proprietor of
The effectiveness of rumors that are well circulated is too well
was
the element of discrimina¬
as a great nation and as the head
Thomas M. Tillman Co.
known to be dispensed with as a factor in the money markets. . , .
tion
involved in the fact that,
;f
while
payments remained free of a great family.
OFFICIAL SELLING LOWER
within
the
sterling area, they
George R. Compton with
were
controlled
and restricted
Sales of marketable obligations by government investment ac¬
George Floyd Opens !'
Glore, Forgan & Co.
between that area and the rest of
counts during August, according to some estimates, were considerably
George R. Compton has become
OKLAHOMA CITY, OKLA.—
the world.
Another of these ad¬
under the July eliminations of $609,000,000. ... . It is believed that
associated with Flore, Forgan &
George Floyd is opening officesjin
disposals amounted to about $300,000,000 or about one-half as many Co., 40 Wall Street, New York vantages which found apprecia¬ the First National Building to en¬
tion in certain quarters in Britain
as were sold during the record month of July, . . . The smaller sales
City, members of the New York
gage in the securities business.
was the financial ease with which
by the powers that be, accounts in part for the higher prices that Stock Exchange.
were in evidence last month in the longer Treasury issues.

tarded, in

in the money

markets.

...

with

...

nue.

offices at 128
Officers

are

THE COMMERCIAL & FINANCIAL CHRONICLE

(924)

dents

sections

the

cdnsiderable

time

will

spend
of

each

Plan for Kentucky's Business

the

offices of member firms in Pitts¬

Securities Salesman9s Corner

burgh.

Muir, President of Kentucky Chamber .of Commerce, issues
brochure setting forth goals to provide more
jobs, larger payrolls

corollary to the Gov¬
meeting, there will be a
meeting for all employees of the
Pittsburgh member firms at which
will be discussed the philosophy
Also,

The Bureauciats Don't Know How

as a

behind the New York

and

new

sources

much about financial matters.

These

things all add to the
difficulty of merchandising investments. For this reason it
lakes salesmen to go out in the highways and byways and
convince the average small investor that he should RISK his
money in American industry. Of course this does not mean
that a salesman should misrepresent anything to anyone. No
self respecting businessman in ANY LINE of endeavor will
tolerate such sales tactics because he knows that it is not the
best way to

build

up a

will

held

afternoon.

each

Board of

morning

addition

Governors

Kent

and

will of that customer.

I don't

care

what

counsel,

coordinati

Wymond Cabell, Branch, Cabell

community.

Serve

mation.

-will

tions
Earl

offered

Muir

the

and

of-State

The

plans

and

dustrial

itself

concern

public

service and member
brochure

in¬

relations, the

What

says.

may
be
Categories

done, under each of the
is

State.

with

outlined for all to

see.

;

communities

dustrial
able

data

and

listing avail¬

industrial property.

Encourage

community

indus¬
local

required

surveys

by manufacturers.

T'he research part of the
gram-embraces

'-/•

pro¬

study of Ken¬

tucky in comparison with other
States competing for new indus¬
try,

an
assay
of raw materials
and natural resources, a
survey of
market
possibilities
and
the
State's locational

relationship to
nearby major markets, an educa¬
tional program to foster agricul¬
tural

processing and local service

industries

The

guidance in the collection of in¬

all

development, * research,
relations,
organization

local

available-labor

Commerce

{

businessinterests.

Serve

trial foundations and aid in

Common¬

out of the

Chamber

communities,
to
the
civic organizations of
Kentucky, and to individual busi¬

infor¬

•

and

nessmen

clearinghouse

community
..:
v'

•••

Bring Kentucky's unlimited op¬
portunities to the attention of out-

wealth's

trade

.7."

State

industrial

func¬

These

Sidney J. Adams, Paul Brown
Co., St.

service.

and

SEC Commissioner says about & Co., Richmond; Lyon Carter,
giving over "body and soul" to the cause of full disclosure, Estabrook & Co., Boston; William
W. Cumberland, Ladenburg, Thalthere is not a securities buyer
yet born that doesn't have a
mann & Co., New
York, Richard
subconscious mind full of doubts and suspicions towards
P. Dunn, Auchincloss, Parker &
security'salesmen in general. They have read too much dur¬ Redpath, Washington, D.
C.; F.
ing the past 14 years in the papers about sharpers, thieves, Dewey Everett, Hornblower &
sharp practices, etc. They have seen too many political blasts Weeks, New York; Albert D. Farwell, Farwell, Chapman & Co.,
against American industry and Wall Street by publicity
Chicago;
Harold P.
Goodbody,
seeking Congressmen,
Attorney Generals, and sundry Goodbody & Co., New York; M.
bureaucrats. They are a scared and
suspicious lot. That is Donald Grant, Fahnestock & Co.,
New York.
another reason why the investment business is
stagnating
Benjamin Griswold, III, Alex.
today while the rest of American industry is humming with
Brown & Sons, Baltimore; James
activity.
E.

program

are:

listed

any

The, under¬
lying tenets of
t h

Co., New York.

•

outlined.

below:

business

Kentucky

Governors of the Association of

lasting business.

offers

the

Exchange will attend.

why make such a fetish over this thing as to whether Bache & Louis; Harold L. Bache,
Co., New York; George
or not your custodier
fully understands the difference be¬ E. Barnes, Wayne Hummer & Co.,
tween acting as an agent or a principal in a transaction? Chicago; D. J.
Bogardus, BogarAlright if you feel like it, sit down some day with your cus¬ dus, Frost & Banning, Los An¬
tomer and explain the dry dusty details of your business geles; J. C. Bradford, J. C, Brad¬
ford & Co., Nashville; Sydney P.
to him.
Go ahead and do it, but be careful you don't over¬
Bradshaw, Clark, Dodge & Co.,
complicate an otherwise harmless situation and bring doubts New York; Springer H. Brooks,
and hidden forebodings out of the recesses of
your customer's Piper, Jaffray & Hopwood, St.
Paul; Gilbert U. Burdett, Laidlaw
mind which may cause you to lose the confidence and
good &
But

Educate Kentuckians to the
ad¬
vantage. modern industry

for

progress

President of the New York Stock

are

Day"

which

the

Association, Robert P. BoyIan, Chairman, and Emil Schram,

Exchange Firms

k y's

program

of the

Stock

Greatest

Officers

and

program.

"Tomorrow,^

;

Stock Ex¬

of the Board

; Business sessions

Kentucky's improvement

Kentucky Chamber of Commerce, through its
President
Muir, has recently issued an attractive brochure entitled

(Continued from page 4)

for

revenue

The

change public relations advertis¬
ing program and its results.

Secuzities Are Sold!

Development

E. R.
.

ernors'

By JOHN DUTTON

Thursday, September 4, 1947

dependent

communities

now

goal to provide more jobs,
larger payrolls and new sources

outside sources, es¬
tablishment of a Kentucky Busi¬

Index to gauge commercial
and industrial progress and an ex¬
amination of hindrances to growth

for

revenue

requires

program

into

the

tries

improvement
the* bringing

now

State

indus¬

selected

decentralizing. To reach
this objective, the
Chamber of
Commerce proposes to;
7

ness

and

the

formulation

eliminate

these

programs

deterrent

fac¬

tors.

Sees Consumer Credit Far Below Prewar Level

Commercial Credit Company compares present consumer credit
Hogle, J. A. Hogle & Co., Salt
j
City; Wilbur G. Hoye, Chas. ; ratio to disposable income with 1941. Sees basis for large expan- i
sion of auto and other instalment sales credit.
functioning government agency it should be thinking about W. Scranton & Co., New Haven;
{
:"
'
William E. Huger, Courts &
V
'' ^
the problem which faces American
Co.,
industry over the next
According to a study made for A. E. Duncan, Chairman of the
Atlanta; James M. Hutton, Jr., W.
five years. That problem is how we are
going to raise billions E. Hutton & Co.,
Board of the Commercial Credit
Company, automobiles and other
Cincinnati;
of dollars of new
capital from the people of this country.
George R. Kantzler, E. F. Hutton instalment purchases are small <S>& Co., New
spendable incomes of $169,600,- *
;
We certainly won't do it
York; Thomas F. Len- when compared to the total na
by sitting down and explaining
non, Delafield & Delafield, New tional " consumer
credit,
much 000,000. As of May, 1947 there:
the difference between
"principal" and "agent" but we will York; Laurence M. Marks, smaller when compared to the was $10,664,000,000 in consumer
do it by simply
saying "This stock will cost you $25, let me Laurence M. Marks & Co., New total national disposable income credit outstanding. Against this
hnd could not possibly play any
there
was
in
total
put you down for a thousand shares" (even though we know York.
instalment
our customer can
Leonard D. Newborg, Hallgar- large part in producing inflation credit, only $4,747,000,000; of this
only buy 500). He will like the compli¬
which might bring on a depres¬ automobile instalments made
ten & Co., New
up
ment
York; Joseph M.
regarding your high estimate of his financial status a
sion.
only $810,000,000 or .47%.
Scribner, Singer, Deane & Scrib¬
lot more than a
Consumer credit, according to
"To be on the same basis with
long dissertation on how y6u will confirm ner, Pittsburgh; Laurence P.
the stuff after he
buys it. If we are correct in our belief that Smith, Bennett, Smith & Co., De¬ the study, consists of such things the., Dec. 31, 1941 figure," Mr,
as personal loans and loans made
Duncan reports, "automobile in¬
the Commissioner's
speech was ghost written, then some day troit; Winthrop H. Smith, Merrill for:home
repair or modernization stalment sale credit outstanding
Lynch, Pierce, Fenner & Beane,
if the fellow who wrote it wants
proof of our view of the New
under FHA
insurance; charge ac¬ on May 31, 1947 would have to be
York; Walter W. Stokes, Jr.,
average investor's attitude, there are quite a few security
Stokes, Hoyt & Co., New York; counts, such as department, store $3,578,000,000 or a further in¬
salesmen who will be
glad to take him out and give him a Gardner D. Stout, Dominick & and other accounts; service credit, crease of $2,768,000,000."
such as that extended
"There has been an increase in
free demonstration.
by indus¬
*
Dominick, New York; C. Newbold tries servicing the public — laun¬ outstandings as of Dec. 31.1941 in
Taylor, W. H. Newbold's Son & dries, dairies, dry cleaners, etc.; instalment loans, including Fed¬
sion plan, preliminary studies of
Co., Philadelphia; Homer A. Vilas, automobile financing and the fi¬ eral Housing Administration loantf
group health and hospital insur¬
nancing of the other articles such for repairs, etc., from $2,176,000,Cyrus J. Lawrence & Sons, New
as
kitchen ranges,
ance; public relations and office
refrigerators, 000 to $2,824,000,000 on May 31,
procedures, including preliminary ;York; John Witter, Dean Witter radios,, etc. •
7 —
1947;
in single payment loans
I
& Co., San Francisco.
The recent analysis made for
of
standard
The Board of Governors of the studies
(non-instalment consumer loans
accounting
If the SEC is

seriously concerned about its future

Lake

•'

•*

Exchange Firm Govs.
To Meet in Pittsburgh

Association

Firms will hold
in Pittsburgh,

Stock
its

Exchange

Fall

meeting

Pa., on Oct. 6, 7
8, it was announced by James
F. Burns, Jr., President.
Joseph
M. Scribner is the
Association's

and

Pittsburgh Governor.
Major matters
the

the agenda for

Fall

meeting will be, among
others, employee relations
in¬
cluding preliminary reports of
—

studies of

industry-wide

pen¬

practices.
As

Mr, Duncan

dents of the Association's sections
in New York City —

Accounting,

Cashiers, Margin Clerks, Order
Clerks, and Purchase and Sales
will conduct panel
meetings with
members of the staffs of Pitts¬

burgh members to discuss
and

efficient

office

modern

methods

and

procedures. In addition, the presi¬

Over-the-Counter Quotation Services
For 34 Years

way/New

Mr.

City,

Johanson

Rheen

Broad

pany

has

been

Manufacturing Com

their manager of adver

public

B.
as

ten

relations

was

with

years

Keplinger
an

the

charge accounts from $1,764,000,000 to $2,840,000,000 on
May;
31, 1947; and in service credit

and

the

from

Governors

Reserve

Board

the

individual

incomes

after

payment

years

and

of taxes), from the
1929 to the end of May, 1947
breaks down the different

types of credit outstanding.
In 1941,
according to the an¬
alysis, Americans had
$92,000,were

$9,895,000,000

total

their

automobile

granted

10.75%

$610,000,000 to $874,000,009
May 31,. 1947. Charge accounts
are
largely current transactions

which
and

cluded

total

"The

mobile
credit
to

this,

above

and

probable

consultant.

Mr.

spendable

San

Fran¬

.Vice-President
.

and
.

Pacific

whiles other

instalment outstanding time
chases amounted to
or

pur¬

$1,802,000,000

1.95% of the incomes.

During the

mated,

year

Americans

will

have

also

income!

sale credit

the

indicate

and

other

based

volume

the

Thesd
larger

expansion

outstanding

1947, when
mated

the prolonging

depression.

future

automobile

1947, it is esti¬

personal

on or

business

000

incomes,

other instalment salef

bringing
a

and

combined

that

show

outstanding in comparisort

advertising

the

credit

consumer

figures

disposable

the

out¬

be^ in¬

not

could not materially affect either

2.11%

cash basis

the very small
percentage of auto¬

figures

should

outstanding.

time ""purchases

incomes.

almost

are

probably

standing amounted to $1,942,000,-

Doremus

Manager.

Statis¬

Midyear Economic Report of tne
President, the latter dated July 21,
1947.
It gives the total national
disposable personal income (the
total

Research and

San

cisco office with Ronald C.
Brind-

Coast

Board

banks, etc.) from $1,601,000,009
$2,203,000,000 on May 31, 1947;

Johanson will make his
headquar¬
ters

tics,

credit of

joining Rheem, he
for

Division

000,000 to spend and

tising and public relations.

Livingston

San Francisco

Company, 120
York

by William H. Long, Jr
President.
For
the
past seven

Francisco

Street, New York 4, N. Y.

nounced

Prior to

Established 1913

•

Carlton A. Johanson has
joined
Doremus &

associated

NATIONAL QUOTATION
BUREAU, Inc.

was based on
figures
percentages obtained from
Department of Commerce, the

Federal

Doremus & Go.

with

Chlcag0

the

C. A. Johanson With

years,

46 Front

and

corollary to the Governors
meeting ih Pittsburgh, the presi¬
a

upon

instalment

May 31*

anything

current

esti¬

disposable income for thQ

1947 period."

THE

Number 4626

166

rolume

COMMERCIAL

oil and concludes reserves are ample, but new
distribution problems arise because U. S. reserves are being drawn
on three times as fast as foreign.
Foresees coal and natural gas
as source for future U. S. oil.

cnnnlies

rate of 8% of reserves.

Ac-

discussed.

At this

Icording to the "Survey": Vv :
question of future oil sup¬

The

recognized as a major
problem, has taken on

ply, long

rate

our

reserves

are

be¬

ing drawn upon faster than those
of
any
other major producing

national
even greater importance as a re¬
sult of the war.' The vital neces¬

nation.

■

-v. v

■■

increased

Reserves

from

equal to less

20.1

billion barrels in 1942 to 24.2 bil¬
lion in

proved

temporarily im¬

has been

serves

peded.

Domestic consumption has

continued since the war at a rec¬
ord-breaking volume.
War and

have, for the

postwar conditions
being,

time

virtually halted the

long-term growth of our reserves.
Foreign
have
now

meanwhile,

reserves,

increased rapidly and are
nearly twice as large as do¬

mestic

foreign

while

reserves,

remains substantially
than that in the United

production
smaller

certain past pre¬
based on existing trends

States. Although
dictions

and known

have proved

reserves

has

maintained

been

rise

increasing demand at higher
prices. The consumption of natu¬
ral gas has increased more than
60% in the last five years.
Even
at the higher prices now prevail¬

production and shortages
of
manpower,
materials
and
equipment for drilling.
There is
some
basis for confidence that,
once the material shortages have
been relieved, the situation will
prove to be more favorable than
it now appears, since the rate of
new discoveries may be expected

reserves

is the

shelf—the

areas

in the outlook for

continental

vast

average

exceeds

rate

The

1950.

predicted earlier for

increase in consumption

from 1946

1947, estimated at 4% early this
is now placed at 7%.
The
rate of demand puts a strain on
to

year,

is a

present facilities, and there
distinct

the next year or more as a

that

bottlenecks

water

along our

coasts. Although no

important dis¬

areas

have been

in methods
drilling, which

shallow-water

sea-

of present techniques.1 For
being, however, existing

range

the time

have been upset and the
future progress has
been obscured by the recent deci¬
sion of the Supremq. Court indi¬
cating that off-shore areas belong
to the Federal Government rather
than to the States that have leased

programs

for

outlook

have

result
devel¬

oped in materials and engineer¬
ing.
The unprecedented growth
in demand has occurred in spite
of the retarded rate of automobile

almost

have

products

properties to private concerns.
Expansion of Facilities

As in the

United

case

States

of crude oil,

has

the

doubled

this

the

category

in 1942 to 4.3 billion in

changes, accompanied by
additions and improve¬

these

level that
is high in comparison with that
during the decade before the war

however, is in excess of operating
capacity in some districts, espe¬
cially in the Middle West. ; Runs
to stills are at a new peak, ex¬

but not in relation to the cost of

normal

ments, no difficulty \ in meeting
postwar requirements would be
experienced. The present great
and

generally unforeseen demand,

teplacing domestic reserves.
De¬ ceeding the 1946 average by 8.5%
The
spite recent increases, the price and that for 1939 by 50%.
level for petroleum and its prod¬ large excess capacity that existed
the
ucts has risen less than the aver¬ before
war,
including un
topping
units
and
age for all
commodities and is economical
still below the 1926 level.
shut-down plants, has been ab¬
The in
crease in prices has been approxi¬
sorbed; engineering departments
are overworked; and materials are
mately equivalent to the rise in
in short supply.
Under these con¬
costs.
ditions there is believed to be no
Production in the United States likelihood of an early return to
continues at about two-thirds of the extremely easy supply situa¬
the world total.
of

The

present* rate

tion of the prewar years.

barrels

Transport conditions vary wide¬

daily not only exceeds all previ¬

ly in the different parts of the
country. Tankers, which supply
about 95% of the demand on the

than

5.1

million

ous records but is more than one-

third above the 1941 level.
is

Yet it

barely sufficient to keep

pace

day

East.

reduction

exports

from

the

United

last

in¬

1945.; Al¬

low-cost volume products,
synthetic rubber, plastics

such

East

Coast, are available in am¬

ple numbers.

The interior pipe¬

there
not

giant

few

are

refineries that

are

urgently in need of modern¬

ization.
a somewhat
At present this
supplied
largely by

Transportation is in
similar

position.

service

tankers.

While these

short

come

are

not now

supply, they might be¬
if additional oil from the

Middle

East

should

required.

Total proved world reserves ap¬
pear

to be more than adequate to

meet demands for

but

United

States.

extremely

long period,

distribution

the

these

re¬

has been

radically altered
in recent years. From the point
of, view of the United States, the
serves

fact is

serves

are

domestic re¬

that

being

drawn

upon

nearly three times as fast, pro¬
portionally, as foreign reserves.
Past experience indicates that the
outlook could change greatly as a
result of unexpected discoveries
or
other
developments.
Mean¬
while, however, the industry is
proceeding 011 the basis of known
facts and is preparing for the use
of new processes to supplement
existing supplies at the lowest
possible costs. The production of
liquid fuel and other products

doubtful,

however, in view of
shortages and political uncertain¬
ties, whether all these plans will

from natural gas on a

commercial

scale is expected to begin within
about a year, and there is authori¬

out within the five- tative opinion to the effect that
period. If they are, refinery high-grade motor fuel can be pro¬
runs will be
increased by about duced in this way at a cost com¬
1.2 million barrels daily. This is paring favorably with that of sim¬
equivalent to an increase at the ilar fuel from crude petroleum.
rate of 10% a year for five years, Reserved for use in the not too
as
against a rate of increase of distant future is »the application
about
18V2%
in
the
10
years of like processes to coal, shale and
preceding the war. Important con¬ other carbonaceous materials.
struction is now under way in the These
processes
give
eventual
Middle East, Far East, Venezuela, promises of very great and reason¬
England and France. With the ably economical additions to the
exception of refineries in
the oil supply.

carried

year

Letter to the Editor:

insecticides.

plants on is¬
lands off the coast of Venezuela,

was

: As the result of a number Of
factors, including wartime de¬
struction of facilities, coal short¬
ages and the possibility of a sharp

pounds, the economic importance
of chemical products is greater
than their physical volume Would
indicate. Research has developed
many

two

central

though this is equivalent to only
about 1% of the annual output of
crude
oil
when
measured
in

Continued

growth in this section of the in¬
dustry is anticipated."

maintained its

heavy consumption and the
disappearance of surpluses, prices
of crude oil and refined products
have advanced about 67% in the
last 12 months.
The rise of 70
cents a barrel in crude oil has
a

Preparations for Future Growth

creased from half a billion pounds

year was

1938,

output

Poinis Out Switzerland Has Financed Itself
Dr. Frederick
errors

Conditions Abroad

brought the price to

of 11.2 barrels

leading producer in Venezuela
a range from 5,000 to
10,000

dle

condensate, with the result
that, while oil reserves have in¬
creased only slightly, gas reserves

with

billion

barrels for most wells in the Mid¬

position as producer of approxi¬
The great disparity in consump¬
mately two-thirds of the world's tion
per capita between the United
total volume of petroleum prod¬
States and the rest of the world
ucts. All but a small fraction of
production.
Among the causes of
has, for the time being, been in¬
the
refining and manufacturing
this growth have been high em¬
creased by the war. Demand in
capacity is domestically owned. this
country last year amounted to
ployment
and
income
levels,
Capital expenditures during and
571 gallons per capita, as against
widespread farm prosperity, rapid
since the war have been large and
installation
of
oil
burners
and
95 gallons in the rest of the West¬
have been devoted for the most
diesei engines,: almost insatiable
ern Hemisphere and only 14 gal¬
part to the addition of catalytic
lons in the Eastern Hemisphere.
public demand for automobile
cracking units. This development
travel, and heavy industrial, mili¬
Consumption in the Eastern
has resulted in only moderate ex¬
tary and export demand. One of
Hemisphere, which was abnor¬
the results has been to cause the pansion of over-all capacity, but it mally low in 1946 as a result of
has greatly increased the flexibil¬
Department of Commerce to remany factors growing out of the
ity of the refineries and has per¬
impose export controls as of July
war, is believed capable of great
mitted the production of a higher
X, 1947.
potential growth, particularly in
v..
percentage of middle products at
\
1
I' "•.
view of coal shortages, which are
the expense of fuel oil, besides
Prices, Production and Reserves
expected to continue for a number
As a consequence of large in¬ making possible a great increase of
years.
in the yield of gasoline if desired.
creases in costs and the termina¬
Although total foreign produc¬
It was
anticipated that with tion last
tion of price control, combined
.

24.2

and

gas or

and

the

of temporary

possibility

shortages from'time to time over
of

shallow

has brought considerable areas of
the continental shelf within the

the

56%

produced in 1946, as against a re¬
ported average of 280 barrels for

dustry also has expanded rapidly
in recent years.
The volume of

now

about

billion barrels, while re¬
in the United States have

about

East,

the

and

this

American-

are

United States and the Middle

Four large pipeline projects with
(or 20.9 billion exclusive
a total capacity of more than 1.2
of natural gasoline and conden¬
million barrels daily, to be com¬
sate). The average production per
within
five
years,
are
well varies widely in different pleted
areas.
In the
United States an planned for the Middle East.

recent discoveries has consisted of

enhanced by progress

and

1.8

barrels

four years.
The chemical division of the in¬

war

reported thus far, the possibility
of future development has been

least

con¬

coveries in these

consumption

which

States, the major inter¬
national oil
companies both
tracts than were customary be¬
American-owned
and
foreignfore the war.
Further potential
owned, have embarked on projects
to increase with more men and
growth for this division of the in¬ for
refinery construction, esti¬
material available.
dustry is indicated by the fact mated to cover a
five-year period,
A potentially important factor that an increasing proportion of
that greatly exceed those for the
shorter-term

carriers under

that this country must
alternative of
depending on foreign sources of
supply or relying on higher-cost
substitutes for natural petroleum.

domestic

43.5

risen

prospect

The

those

are

Foreign reserves,

serves

large majority of the important
oil companies experienced only
light withdrawals from their re¬
serves
during the period of in¬
active
demand
and
very
low
prices but are now selling gas, as
produced, in larger quantities to

eventually face the

products
slackened
petroleum
only temporarily at the end of the

two-thirds

States, foreign

owned, have increased by approx¬
imately 270% in the last decade

Demand

all

primarily to this disparity in cost.

despite the

unreliable, recent developments
seem
to have strengthened the

Large Postwar

large

country.

A striking feature of the indus¬
try's history in recent years has
been the rapid growth in the na¬
tural-gas division.
With the ad¬
vent of new processes, the true
value of gas as a fuel is receiving
recognition in the form of swiftly

has been small, the total

reserves

reserves
as

35%

1946, largely because of the
liquid fuel in national de¬
ing, the average cost of gas at the
fense has received new emphasis; inclusion in the latter year of 3.3 well-head, on the basis of heal;
billion barrels of natural gasoline
domestic oil reserves have been
units, is very low in comparison
drawn upon at an unprecedented and condensate not reported for¬ with that of oil.
The huge de¬
merly.
Although the increase in mand that has developed in due
rate; and the discovery of new re¬
sity of

than

that in the United

Industry

Company of New York, contains an analysis
which the<$—————-—: 1 ' ;
—with a current demand that is at
Of the present and future
the annual
of oil is

expected increase for

times

the Guaranty Trust
of the oil situation in

I sotirces

the

producing fields combined.
Unlike
production,
which
is

Growing Divisions of the

August issue of the "Guaranty Survey," published monthly

The

(925)

other

developments in

CHRONICLE

inadequate because of the impos¬
sibility
of
obtaining
sufficient
quantities of additional pipe and
is being supplemented by the use
of high-cost tank cars.

Trust Company of New York analyzes war and postwar

Guaranty

FINANCIAL

line system, on the other hand, is

Foreign Oil Topping Domestic Supply

Sees

not

Bek-Andreae, of Credit Suisse, in calling attention to
July 10 issue, says his country has

in "Chronicle" article in

only made cash investments in this country and South America,
granted loans to European countries.

but has also

Editor, Commercial and Financial Chronicle:
Number 4610
our

(July 10) of your periodical reached in these days

country and on page 2 there is a very interesting article from the

of
Clinton
Davidson
or.<£"Argentina—the World's No. 2 knows Switzerland and the his¬
Garden
Spot"
which
contains tory of our country realizes easily
that in the last 40 years we not
more than one error, which please
rectify in one of your next num¬ only made cash investments in
the U. S. A., in Argentina and
bers.
but we made very im¬
The United States of America Brazil,
portant loans to France, Belgium,
and Argentina are not, as David¬
Holland, Norway, Italy and other
son states, the only two countries
countries.
in the world which are financing
It may be useful to remember
themselves without outside assist¬
that only once in this century
ance,
but there is also a little
did Switzerland ask for a loan
country in the middle of Europe
abroad and that was after the first
which
much
before
Argentina
World
War in
1921, when we
and even U. S. A. was able to fi¬
37% larger than
asked U. S. A. for a loan, which
nance
itself without any assist¬
abroad has not
was granted and paid
back in a
ance from outside and this coun¬

maintained the prewar average

pen

short

time

the

satisfaction of

that in the try is Switzerland. You will re¬
both parties involved.
United
States.
Outstanding in¬ member that Switzerland has not,
These facts should be known by
like U. S. A. and Argentina, a rich
creases in Venezuela and the Mid¬
your readers as the Swiss market,
dle East have been more than soil; we are not at all favored by
while certainly not the biggest (as
and
we
could not live
offset by declines in Russia and nature
we have only a population of 4 to
the Far East. These declines, how¬ in luxury during the war, while
5
million), is the most trust¬
nations suffered privation
ever, are believed to be only tem¬ most
worthy, with an unbroken good
porary, since the potential capaci¬ and starvation.
record in the history of commer¬
The wealth of our nation lies in cial relations between U. S. A. and
ties are very
large. Venezuela,
the
hard
work
we
accomplish the oldest republic of the world.
now producing
about 1.1 million
every day and which enables our
I am, dear sir,
barrels daily,
is believed to be
people to put aside economies,
Yours very truly,
approaching its peak output from from which we could even fi¬
FREDERICK BEK-ANDREAE,
present fields. Potentials, how¬ nance the big electrical works in Berne, Switzerland
two-thirds

about

are

ever,
are

The

development pro¬

Middle

East,

has the largest potential

of any known

region of the world.

Development plans call for an in¬

LOS

The second error in the

of Mr. Davidson is, that

article

only Ar¬

gentina and U. S. A. are able to
buy for cash investments in in¬

dustries; and the third error, that
of about a only these countries were able to
million barrels daily in the next make large loans to various gov¬
crease

five

production

years,

Lingenberg With Staats
Special to The Financial Chronicle

though Electricidad.

producing only about 750,000 bar¬
rels daily,

like the Compagnia
Hispano-Americana de Electricidad and the Italo-Argentina de

large that increases Argentina

expected

ceeds.

ANGELES,

CALIF.—

Ralph L. Lingenberg has become
associated with William R.

Co.,

640

South 'Spring

members of the Los

Exchange.

Mr.

Staats

Street,

Angeles Stock

Lingenberg

wa»

previously with Cruttenden & Co.
approximately equal ernments, because everybody who

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Aug. 28, page 848 the office of the
Comptroller of the Currency in its
Aug. '25 Bulletin indicates that
the Exchange National Bank of

News About Banks
consolidations

First

Effect of British Crisis

new

Bankers

and

officers, etc

revised

capitalizations

National

Bank

Under present conditions decline in

Dover,
consolidated

(Capital
$100,000)
Aug. 15, effective as of 3:30

counterbalancing

benefits
National City Bank.

p.m.

(EST), Aug. 16, under the charter
of the Exchange National Bank of
Dover and under the title of "The

Robert

elected

McKim

the

has

board

been

Syracuse, N. Y., to

directors

increase

of the Chemical Bank and Trust
Company of New York, it is an¬
nounced

director of Associated Dry
Goods Corporation and a director
of
Hahne
&
Co., Newark and

National

Retail

♦

Irvington

Dry

Reynolds,

dent of the Chase
of New York and

board

New

National Bank

♦

Banking
Department reports that as of
Aug. 19 the liquidation of the

affairs of the Port Morris Credit
at 391 East 149th
Street,
New York was
Union

completed by the
of
Banks,
the

Superintendent

idea to encourage
spending

domestic economy may well
be
of the National^
City Bank. The following factors

sustaining the United States

St.

Louis

when

are

"Unexpended
credits

proceeds

that

pa*hy,

will

come

our

way,

grants of funds
here may be

spent

mechanical banks of his collection
Television Station KSD-TV.
Mr.
Long was interviewed

International

Bank.

th*

buying
a

exist in

drop in for¬

What the effects
on
sentiment
be if exports- grow
progres¬
sively smaller is hard to
foresee,"
the bank declares.
"If
may

institutions, notably

the

exchange crisis

unwarranted, according to

some
lines, to offset
eign purchases."

and

available through
existing author¬
izations and

over

dollar

many

asserts

second, that possibilities of
expan¬
sion in domestic

still

gold produced

new

additional loans

are

economy,

understanding, first, that such
a
development would have its
bless¬
ings as well as its
evils; and

busi¬

enumerated:

previously granted

considerable,
Long, will largely

Commerce Bank and Trust Comtold of some of the rare

structure

ness

Vice-President of the Mercantile

exports tyould entail

More¬

develop¬

ments should lead to

by over', work onr programs to
cancellation
imple¬ of plant expansion
Eschen, Director of Special ment
and improve¬
Secretary Marshall's pro¬ ment
News Events, over Station
programs, to general bearKSD posals
is still in the
beginning ishness, deferment of
and
Station
KSD-TV.
In
the stages, and what
buying and
may grow out of
course of the
declining prices, the direct
interview, Mr. Long it cannot now be foreseen."
effects
would be
demonstrated the mechanical acmultiplied. For the pres¬
"The second
Frank

point is that the
business of this
country is in posi¬
tion to withstand a decline
in ex¬

tion of many famous
banks. The
cast iron mechanical
banks

first

made in

were

1869,

some of

ent, however, this would be

Aoo

gloomy

view."

taking

which

ports, perhaps better than at
The Domestic
any
reflect various phases of American
Situation
other time in its
history," the "Let¬
life until the
Several strong points
early part of this ter" continues.
on
the
"This statement home
century. It is stated that there are does not
ecomonic front are
cited.
imply that a drop would
"In the domestic
collections
of
these
banks
in be
situation the
refrigerators, washing ma- several
welcomed, for the world needs
supporting influences, in the
museums, and outstanding our
chines, stoves,
goods, particularly productive of
way
radio-phonographs, private collectors have
accumulated orders and
television receivers and
included equipment to assist
de¬
other ap- | the
reconstruction
late Henry Ford and
mands, and
Walter and rehabilitation.
pliances. It is noted that the
record-breaking em¬
But from the
idea p.
ployment and income,
Chrysler,
of
narrower
continue
displaying
merchandise
on
viewpoint, it is never¬ strong," the
"Letter" continues.
theless
banking room floors is not new
true
that
exports have "Merchandise
Ben R.
in itself, a number
buyers during the
Meyer, President of the been an inflationary
of commercial
influence, past few months have
Union Bank & Trust
banks having
shown more
Co. of Los and will continue to be so if
already used the
the readiness to
plan to promote consumer
Angeles, Cal., announces that P. E trade continues so
pay the prices asked
credit I
drastically one¬ in the
markets, despite their un¬
business, however, the Western
Vice-President, has sided. When goods are shipped
certainty as to what the public re¬
Saving Fund Society is the first arranged to visit a number of the out of the
country the purchasing action will
be when the
principai cities of Western
savings bank in
goods are
Europe, power created by their produc¬
Philadelphia to hy[r
offered across the
devote floor pace to
Neuschaefer will sail from tion and sale remains
counters. Ap¬
merchandise
in the coun¬
parel
New York
manufacturers are under
displays. Briefly the plan will
Sept. 3 on the S.S. try, and when we
opship more goods pressure for
erate in this
queen Elizabeth with an
shipments. The shoe
manner: Each month
itinerary than we receive the total purchas¬ factories
I wiiiCh will
and
soft woolen mills
take him to
London, ing power increases relative to the are
Dec.
stepping up operations after
31,1948, a different merchant Paris, Milan, Genoa, Zurich, Lu- supply of goods."

State

corporation dissolved and the
porate existence terminated.

U.S.

domestic

"Monthly Letter"

interesting event took place

its 101st year. The
displays inelude items which
throughout the
war
and for
many months after
the cessation of
hostilities were
either
entirely
unavailable
or,
hard to get—such
things as electrie

York

•

monthly exhibits of merchandise
placed on display immediately after Labor Day in the banking rooms of the Society, now in

Aug. 31 to return to law
practice as a member of the firm
of Shearman &
Sterling & Wright.
V The

was

our

Forecasts of dire effects of
Britain's

of $175,000.

$10

Society, with the cooperation
of retail merchants in the
vicinity
of the
branches, the first of 16

Secretary of its
directors, would resign

for

our

Dover,with

capital stock of $250,000,
divided into 25,000 shares of the
par value of $10 each, and surplus

the

Aug. 28 that
Vice-Presi¬

value

par

common

saving' was put into
Sept. 2, by the Western
Saving Fund Society of Philadelphia. Under the plan launched
by

indicated

was

the

Bank

well

effect

Goods Association. He is also a
trustee of the North River
Savings
Bank, New York.

'"V It

N.
J.;
Stewart Dry
Company, Louisville, Ky.,

the

from

each.

Montclair,
Goods

stock

National

$125,000, consisting of 5,000 shares
the par value of
$25 each, to
$200,000,
consisting
of
20,000

and

capital

Baxter Jackson,
Chairman. Mr. McKim is President
and

certificate of

Business Discounted

Dover, (Capital $100,000) and the

new branches

Thursday, September

cor¬

Neuscha'efer;

•

brochure

relating

the

County Trust Co. of White Plains,
York, the* largest bank in
Westchester County, has been is¬
sued by
Hayden, Stone & Co. of
New

"New

York.

The

brochure

fT?r IrS1 *6 ™ont?s' en2m?

covers

the

history, business and progress
of the
institution, and presents a
record of its
earnings, financia"
condition

and

prospects.

The

will

Aug. 7,
the

town
sell

page

for

.development

and

A special

holders

be held

60-year-

& Trust Com¬
N. Y., with Se¬
The
Rochester

Trust.

nouncement

Bernard
of

the

meeting

Philadelphia

Trust. The merger has
been
approved

Board of Directors
and

the

each

Superintendent

which

approval

firmation

has

and

con¬

given,

been

the

Citizens Bank

& Trust
Company
will become the
Dansville office of
the

Security Trust Company. Mr

Finucane said he
hoped final
rangements

will

complete

Oct 1.

Under

ar¬

the

plan

George

and the entire
staff of the
--•Bank will
continue
ent

in their
pres

posts.
*

•

Aug.

by the

Rnwprclv11

Bowcrsox

is learned
tha

approval

Department

was

given

the Indus

trial Bank of
Central New York

the

mand

the

Western

nounced

can

slack

ports,"

aS°-

domestic de¬
take up at least
part of

that

the

may

come

"Letter"

asserts.

San

with

an-

ket

sold at

effect

for all

sure

-4'M;

they

can

produce, and

with most of the
capital goods in¬
dustries still

"In

having heavy back¬
construction
activity
better than the pessimists

logs

and

holding
of last
Spring expected, the likeli¬

home,

automobile

"The automobile and
steel man¬
ufacturers continue under
pres¬

that

automobiles, for example,, it is
plain that the cars now
being sold
abroad could all be

Anglo-

California National Bank of
Francisco,
Calif.,
it
was

to enter the automobile
business,

mar¬

hood

conditions

that

industrial

production

get

Deposit Comat

duties

Baltimore

aa?

-ra

ia
Ronald.

San

Francisco

has had
experience in the

?T ? a?ir?vCe"

und.

tember.

llan9e
nGctcd

1935

Sep-

years

banking and fifields, and has been conwith

He
0f

the

Anslo

Bank

director

and

Ifn JoL

they had previously
occupied the
positions of Associate
Manager,
Assistant Manager
and
Special
AfW ThA AffiAA
Agent The office onntinnoo
continues
undei

the active direction
of William H.

ment, subsequently
working
1934

travelling

was

Mr.

F
a

up to

joined

D's

Chicago organization
clerical capacity in
1933.

Supplementing
ing

merger

the

auditor.

banks, appearing in

associated

past

the

Bank-

Mr.

office

manager

Hall

Assistant Manager of

bank's Bakersfield
office, who
becomes Vice-President.

Canned dog food
absence during the

The

starting

war, when

■

cans

Company shows

war

absence

come-back

were

national^-

after a complete
urgently needed for other
—-

American

Can

survey, which covered
5,950

families

throughout

the

farms and in cities
of

country
all sizes,

ned dog
food.
In
addition, the
survey discloses that
about 2,800,000 other
dog owners say
they in¬
tend to start
giving their pets the
canned food
they, enjoyed before
the
war.

The

Board of Directors
of The
Pacific National
Bank of

Seattle,
item regard-1
Wash., announces the
election on
Ohio, Aug. 28 of
Caspar W.
issue of

steel

and

early future,

estimated that almost half the

canned

food

now

being

going to dogs on farms
non-farm! homes.

sold

in rural

Mr.

Dover,
our

coal

rather

capacity for indicates that
However, the largest potential
there are approxi¬
Calkins mately 664,000
postwar market for
canned dog
dogs who are now
food
that Mr. Smith being fed balanced
apparently lies among urban
diets of can¬

years.

Jose

now

Anglo

Can

potential sales after

Dodge-Ply- Company.
with

the

than retro¬
gression from the 178
figure is to
be expected."

Survey for American

clearing purposes,
according
Barnett, survey made for

indus¬

Canned Dog Food Starts
Gome-Back

executive

succeeded

San

Jacobs,

the

Board's

For the

improvement

Past-Presi-

Joge

shutdowns.

nop

distributor in Santa
Rosa,

been

further announced
will

assigned to Chi-

Fuermann

Association.

Bank in
the

Reserve

month

should not welcome

Community

California

ers Association and
dent of the San

has

accounting depart-

trial

were

Trea<;

Chairman

Group DIof.

who will become
the

con-

Federal

steel

less

our

Chamber of Com-

merce, director of the
Chest of San Jose,

mouth

connected with its Chicago office. Mr. Bowersox
started
with the F & D
in
1928
as

0f the San Jose

House

Hansmann, Vice-President.1 Mr.
Neal joined the F
& D in
September, 1930 and has since been

the position of

cars.

a decline
exports of the
commodities
which the world
needs so
acutely
But realistic
appraisal requires an

Merchants
ChloagodoHfcpS\nntho nr^gernamed
cago office. In the order
°f ^Association, Second Vice-President

member of its

another, to

new

production index stood at
Smith, now Vice-President exported, production of automo¬
178
and Manager of the
and
(1935-39=100), against the
bank's San biles
many
other
articles March
.Jose office, will assume
peak of 190, but
his new would be larger. We repeat tha
July was
the

cago.

ing Department if

the automobile and
activities of

nancing

bank

still present."

follows

| Mr.

Maryland

Weekly Bulletin Aug

22 of the New York
State Bank
on

From the
•4

Citizens

"It

comprising
equipment fi-

tinuously

Plummer,
President;
Paul
E
Wamp, Jr.,
Secretary-Treasurer

Si:

department,

W; J
Fuermann, to the respective
positions of
Manager, Associate Man-

bank

quote also stated in
part:
"When final

^ °r

the

of Banks

of the State of
New York.
The press
advices from

pany

by
President

Security

already

South¬

W. H. Smith has been
appointed
in charge of the
contract

and its varied

rnj
The Fidelity and

proposed

was made

Finucane,

accounts

the

curtailment, and

"Conversely, relaxation of industries will
give more support
export pressure will
produce to
employment and purchasing
a more
normal and
orderly situ¬ power this Fall
than many people
ation. Domestic needs
will be bet¬
considered likely a few months
ter
supplied, in cases where short¬

Vice-President

some

community life."

"Times-Union"
reporting this in
its Aug. 28 issue
said that an an¬
merger and

that

the

from

the

ages are

purchasing

savings

depositors,

via

prices,"

months

cotton mills have
orders in many
lines for months
ahead. Thus it
seems evident that
the soft goods

Aug. 16 by Allard
except a possible
Saving Fund Society
during the Fall will stay fairly
decided to A.
decline in the
Calkins,
President.
take this
Mr.
premiums above lis
close to the
pioneering step as we Smith will succeed Ivan M.
prices which so
Spring peak is now
Barenter our second
many people have
to pay, in one
generally accepted. For July the
century of serv- nett, who will resign on
ice to
Sept. 30
way or

approve an

Dansville,

curity

in the

power
our

America

incentive

and
boosted
states.

ampton Oct. 14.

to promote

was

turn

Mauretania, sailing

Cassatt,
Society,

the

to save, as well
as to release
the
vast
latent

Bank

pany of

cities he will visit
banks with which his
institution
maint.ains correspondent
relationships. Mr. Neuschaefer will re¬

the

Bank
will refer in-

N. Y., will

the

sell

display.

;hrift, by providing

Sept. 15 to

agreement
merging
old Citizens

points out that "it

meeting of the stock¬
the
Security Trust

Company of Rochester,

attempt to

Vice-President

ex¬

pansion oi; its services;
'

even

personnel, however,
crested customers to
dealers.
announcing the plan A. J.

541, increases widely
opportunity of the County

Trust

merchandise

issue of

our

par-1

the plan at the down¬
offices. The bank will
not

some

cerne)
Basel, Geneva, Brussels,
"Export
demands
have
pro¬
Antwerp, Amsterdam and Rotter- longed and intensified
shortages
dam
j^'these

glven the allotted floor
the Society's office m
the

:icipating in

Yonkers—a reference

to which
appeared in

community he serves. Two central
city department stores are

appraisal of its

merger

recently
completed of the County Trust
Co., the Washington
Irving Trust
Co. of Tarry town
and the Bank of

Westchester,

area

Chairman of the Board.

Clarke,

prewar

Government
sales

600,000,000 units

ran
a

estimates

high

year.

Some canned
dog food is being
sold to
farmers, despite the fact
that the
great
majority of farm

dogs have
always been fed table
scraps,

the

survey

indicates.

dog owners, for it

approximately
the

dog

was

found that

three-quarters

owners who

they in¬
feeding their pets
canned
food, now that it is again
available, live in towns from 2,500
tend

say

start

population

upward.

The total number
of dogs in the
United States was
estimated at

17,700,000. Two
farm families

dogs,

out of
every

were

three

found to have

compared with only one

out of
every five

city dwellers.

'volume

I947

Number 4626

166

THE

COMMERCIAL

convertibility of current
sterling—convertibility which had

York Federal Reserve Bank forecasts increased tempo of such
liquidation to satisfy world needs for more dollars. Rise in foreign
drain traced.
Effective utilization of dollar resources claimed to

many

depend

crisis
§ to

—

government

The

Reserve

"Review"

year,"* the

millions

asserts.

holdings,
and
in
recent
months of Dutch and Latin Amer¬
ican holdings also. The rate
of

liquidation

increase,

may

how¬

made cash advances to the

Philip¬
pine Government, of, which $60
millions is outstanding at pres¬
ent."
:
•

since the Netherlands Gov¬

ever,

France has

requistioned American

securities held by French citizens,
and Sweden has recently taken a
of

census

domestically held for¬

Foreign Holdings Rise to

$3.5 Billions

The

Board

amount

countries

may

liquidating

that

able

"the

foreign

$400

millions

British credit that
is not to be drawn upon
pending
further British-American discus¬

sions," the Board points out that
"there

still available to for¬

were

mitments.

that

the

balance of the

these

commitments,
$504

unutilized

American

long-

Norway

$50

"There

census

of foreign-owned

as of June 14,
1941, adjust¬
ing the figures for net purchases

assets

and sales since June 1941 and for

in market prices.
On
14, 1941, the market value of
foreign holdings of United States
changes

June

securities amounted to

$2,700 mil¬
lions, of which 1,843 millions were
common
stock, 306 millions pre¬
ferred
rate

stock, 219 millions corpo¬
bonds,
and
the
balance

mainly United States Government,
State, and municipal securities.
At the present time the value of
such holdings, after the adjust¬
ments

amount, Europe accounts for about
<$2,100 millions 5and Canada for
$600 millions, the rest being dis¬
tributed throughout the.' world.
Among the European countries,
the United Kingdom holds more
.

present

credit and

increased ,by
$136
year ended June
1946 and by $423 millions in the
following year."
outstanding
in

from

the United

bank's

assistance

re¬

abroad

the

net

dollar

and

that

states

small

countries

postwar

its findings the
"in

drain

contrast
on

resources
a

year,

other

involving

purposes

whole

the

gold

of foreign
in the first

in the

months

only

No War and No Peace

We
is

living in

are

is not at
no

$600

millions

and

Switzer¬

tion, moreover, depends
.willingness of the foreign

the

owners

unutilized

traditional

another

and

sists

dollar

urgent need for foreign countries
in that period to draw heavily
unon their gold and dollar assets.

requisition

them

exchange control
the

powers.

British-owned

curities

are

still

under

their

Part of

American

pledged

se¬

col¬

insure

currency

sizable

reserves

portion

con¬

to New

have

one

York, I find they all
thing in common. They
brave men, these leaders of

are

cause

where

of freedom in countries

lose an election means
to lose your head, They represent
the hopes of hundreds of millions

when

the

rest

of the

lateral for the Reconstruction Fi¬
nance Corporation loan granted in
July 1941, of which $205 millions
was
outstanding
as
of
March

1947."
The

The

Drain

Cash Credits

"Review"

points out that
"apart from utilizing their own
gold and dollar resources, foreign
countries
have
been
obtaining
dollars

by drawing

American
cash credits, particularly the Ex¬
port-Import Bank loans and the
on

special British credit.

As is indi¬

cated in the table, the dollars pro¬
cured from United States Govern¬
ment

cash

credits

amounted

only $514 millions in the first
post-V-E Day year, this total rep¬

resenting net drawings

port-Import Bank credits.
second

the Ex¬
In the

tiful

military
We

gram,

training.
such

not desire

pro¬

has been suggested, to

the place of our

take

educational

system or to teach our young men
teeth. Hard as mili¬

to brush their

it is a pow¬
against far greater

tary training may be,
erful bulwark

hardship—war itself.
For the defense of the peace we

permanent mili¬

must maintain a

Nations.

The United Nations rep¬

in danger,

are

Freedom

and

peace

the

tries',

process

purchases

the

States increased. Third,
ican
in

United

the Amer¬

price level rose considerably

the

second

postwar year, so
that the available gold and dollar
assets, as well as the proceeds of
American cash credits, have

been

than

had

utilized
been
war.

cent

much

faster

expected after the end of the
The rapid exhaustion in re¬
months of the British credit,

which has been drawn

upon

at a

than

rate

greatly in excess of the nor¬

$3 billions was-obtained by draw-

mal

flow of current

postwar

year,

transactions,

are

our

pared to make sacrifices for them.
We must become strong enough

prevent attack.
Our foreign
policy should become genuinely
bi-partisan. We must unite to make
that we shall not again be
weak and ignorant as to stum¬
ble into the paths of war, but that

instead

munism, and I congratulate you.
As a Nation we can live in har¬

with
gardless of
mony

its

other nation, re¬
form of govern¬

tion

every

rights of

the

respect

But

do so.

fundamental that

na¬

other

to freedom and self-gov¬

people

ernment.

that

any

We propose to

ment.

fundamental

also

nation has

right to

and

shall be strong enough
enough to follow

courageous

firmly

the paths which lead to
It is deeply gratifying that

peace.

the American Legion is so patri¬

otically committed to this

sembly immediately ahead.
Free Societies

Imperiled

know

where

the

congratulate you and wish you
great happiness at this Conven¬

tion and progress for America and
the world in the year to come.

con¬

ness.

Sfassen Lauds Dewey
Stand
"Training"

peasement.
We

war.

not

the

Those

road

ap¬

roads

have followed

them

are

Aug. 29, Harold E, Stassen, a

tender

Gov,

with

past. The institution of human
they be not
followed again.
*
v
The road of peace requires that
freedom requires that

home

united

are.

Everyone knows that there is now
a
movement which is advancing
an

ambitious well-organized pro¬

gram

then

and

undermine

overthrow the free societies of the
world.

We have

nation crumble
its

active

own

seen

nation after

before it.

revolutionaries

see

our

Hemisphere and here in the

United

States

find

its

The

ovprajl, results,

not

been

latter's

organs

for

because

military
training
a n -

sory

nounced

the

important
matters there has been virtually
no
consultation and bi-partisan¬
ship has been ignored. On many
the country has been
confronted with fully elaborated
programs which it had no choice
but to accept or present to the
world

picture of

divided

first

na¬

tion.

for
time

Aug, 28, in

address be¬

fore

the

Con¬

vention of the
A me rlean

take
sen

stand

is reported

commenting

to have said, thus
his previous crit¬

icism of Governor
he

had

definite

accused
stand

"He

bo
be¬
ginning to
things," Mr. btasmay

however,

in many

stand

compul¬

Legion.

good as they could have

o n,

applauded the

the

essentials of foreign policy

Harold E. StaMsn
:

President i

nominal i

Bi-partisanship Ignored

are

con¬

Thomas

Dewey for the
Republ lean

the

occasions

dangers

course.

overthrow the govern¬
ment of any self-governing peo¬
ple.
The road to peace is not easy.
on
It is not a road of self-indulgence,
According to a statement in the
of unpreparedness, or of weak¬
New York "Herald Tribune" of
spire

broad

the

today

resents

foreign

of reconver¬
sion
in
this
country advanced,
with the result that foreign coun¬
as

is in

uninterrupted flow of goals and it is time we set about
achieving them, We must be pre¬

their foreign trade."

judg¬

countries
In addition to waging the peace
to conserve their gold and dollar
resources
temporarily, thus con¬ through sacrifice, through strong
tributing greatly to the mainte¬ military defenses and vigorous
support of the United Nations, we
nance of international liquidity in
have another obligation. We must
the
immediate
postwar
period.
Second, goods became more plen¬ honestly face up to the facts and
enabled

grants

world

danger of being enslaved, we, too,

(Continued from page 7)
again make the mistake of
ing us to be weak.

credits and

The earlier American

the

statesmen of the free world who
come

sure

peoples of the world. As a nation
must hope that prevention of
aggression
will
make
further
strides in the meeting of the As¬

and

there

But Without Peace

American grants and gifts,
consequently there was less

right

which

As I visit with

peace.

credit

working balances that
preserved in order to

have to

has, nevertheless, made progress
in mobilizing the opinion of the

to repatriate the securities or the
ability of the foreign governments

world which

and surplus-property ar¬
rangements, as well as from out¬

lease,

but in

war

hopes
and
and for three years our two great
aspirations of all men and women
land
somewhat
less
than
$600
political parties have worked to¬
for the rapid rise in the utilization of good will the world over. It is
millions,
the
Netherlands
over
a
product of the work of many gether at the conferences of San
;;$400 millions, and France about of gold and dollar assets and
Francisco,
London,
New York,
$250 millions. In the face of the available dollar credit lines. First, hands, and I am happy to say, in
Paris and Moscow. Both are en¬
current large
British, Canadian, for a year or so following the end part of the bi-partisan foreign
titled to credit for many of the
French, and Dutch balance of pay¬ of the war in Europe foreign policy which I undertook to create
developments in the implementa¬
ments
deficits, the holdings of countries obtained American during the summer of 1944. Beset tion of our
bi-partisan foreign
American securities are thus of goods and services on
deferred by obstacles and frustrated by
limited importance. Their utiliza¬ terms under war-settlement, lend- constant use of the Soviet veto, it policy.
than

the

A World Not at War

and

credits, government and private,
was $3.5 billions."
Continuing, it
adds, "there are several reasons

All
the
things we take foe
Furthermore," the Board
granted in this country are now
concludes, "even, countries that
denied to many hundreds of mil¬
still have gold and dollar assets
and are endangered over
available cannot actually utilize lions,
most of the rest of the world.
the entirety
We»
of their resources,
since a large part represents legal have learned the bitter lesson that

long-

t|ie drawings on tary establishment adequate to
the defense of this country at all
dollar 'assets
amounted to $3.3 billions, while times and also sufficient to perthe utilization of American cash form our obligations to the United
gold

which foreign

Congress

lines.

reconstruction or

ended June 1947

foreign

assets

(including aid already
extended) is about $1 billion dur¬
ing the first year of operations;
none
of it, however, is intended
for

in the
United States.

depends,
the aggre¬ of people for
peace and for per¬
gate size of such resources, but sonal
dignity, for a chance to edu¬
also on their distribution
by coun¬ cate their children, to
work, to
tries, which is highly irregular. live with their
families free from
The countries that are in
greatest fear. They want the
right to wor¬
need of American food, raw mate¬
ship their God as they please, to
rials, and manufactures are in
speak the truth as they see it and
many instances not the countries
to learn the truth from a free and
that hold large gold and dollar
unfettered press and radio.

dollar aid

used

resources

moreover, not

There
are, however, legal and practical
limitations upon the rate of lend¬
ing by the Fund and the Bank, as
well as
upon
the purposes for
which their facilities may be used.
The
Fund's maximum
potential

must

countries may still draw

before the end of the year.

available

the elected representatives of the

people

the

financial

makes

"The effective utilization of the

States

uncommitted

Bank

dollar

addition, the World
Fund and Bank may grant addi¬

tional

in dollars),
dollar funds that

be raised by the sale of de¬
on the United States in¬
vestment market.

Kingdom, and
(as of July 31,
1947) $944 millions of undisbursed
of the Export-Im¬
port Bank, and $807 millions of
that

paid

was

bentures

commitments

sources.

that

first

Government credit to the United

the

In summarizing

Board

the

also $400 millions still

loans,
To win the peace we must re¬
credits, mostly short-term,
have
been
extended
to
foreign main strong and become stronger
countries by the Federal Reserve I urge that it is our duty to pro¬
vide a program involving partici¬
Banks
(against gold collateral)
and
by
American
commercial pation by all able-bodied young
men
under universal
banks. The total of such credits American
Bank

Export-Import

millions

tions

Any additional

cash,

mentioned

above, is esti¬
mated
at
approximately $3,500
millions; the increase since 1941
is due entirely to the rise in mar,ket
prices.
Of
the
aggregate

British

"Besides the
the

are

available

lands $7 millions), the rest being
mainly assigned to Latin America
($241 millions) and Asia ($179
millions).

Treasury

British

its

worth of American long-term se¬
curities," the "Review" continues.

land $22 millions, and the Nether¬

can

the

lions in gold and short-term dol¬
lar assets and about $3.5 billions'

millions, Fin¬

estimated

securities

by
meet

"At present foreign countries as
whole still possess some $17 bil¬

obtain Jiad $202 millions, Italy $105 mil¬

lions,

taken

Europe
still had
(of which France

millions

the basis of the United States

term
on

explains

dollars

"Apart from

eign countries at the end of July
1947 some $944 millions of undis¬
bursed Export-Import Bank com¬

eign securities."

...

Export-Import Commitments

ernment is promoting the volun¬
tary liquidation of American
securities
by
Dutch
citizens,

currently being dis¬

bursed each quarter. The Recon¬
struction Finance Corporation has

''These sales represent mainly the

liquidation of British and Cana¬
dian

are

Aug,

economic crisis.

credits.

increase in the rate of utilization
of the British
$3,750 millions cred¬

capital
only about $725 millions (repre¬
senting the 20% paid-in subscrip¬
tion of the United States
plus the
2% of other countries' subscrip¬

of the emergency

one

Government

the New York Federal
Bank for September.
"Aggregate net sales, however, it has been particularly rapid, the
have so far been rather small, se¬ total used having increased from
curities worth $234 millions (at $600 millions at the end of 1946
market prices) having been sold to $3,350 millions at the end of
As to the Exportin the first post-V-E Day year, August 1947.
and $223 millions in the following Import Bank
loans, some $250
view"

partly abandoned

measures

securities by foreign countries is**pointed out in the "Monthly Re¬ ing

the

20, 1947

their distribution by countries.

view to increasing their dollar balances, the
likely con¬
tinuation and increase in the liquidation of their American long-term
With

term

loans,
according
to
the
Fund's Articles of Agreement. The
Bank can lend from its own

lateral

New

asserts

FINANCIAL CHRONICLE

has been due in part also to the
gradual reestablishment of multi¬

Foreign Holders Selling U.S. Securities
1

Dewey, whom

not

any

taking

important

national issue,
Gov.

Dewey, in substituting for
M.
Baruch, made the
second address of the day at the
Waldorf Astoria Hotel, before on
Bernard

The people of America have re¬
cently endured the bitterest of all
wars.
Everyone who /wore the

assembly of 1,600 legionnaires.

uniform of the United

Taggart Co. Is Now

States has

taken part in foreign relations as
an

active participant in world af¬

fairs.
our

Our people and particularly

people are acutely
of
the
problems of

young

scious

world and

are

con¬

the

entitled to full and

Phila. Excj!. Member
PHILADELPHIA, PA.—Charles
A. Taggart & Co,, Inc., 1500
nut

Wal¬

Street, has been admitted as

member
corporation
of the
information with regard a
threat to the peace. Philadelphia Stock, Exchange and
Moreover, if we are to maintain also has been admitted as a mem¬
the
bi-partisan nature
of our ber of the Stock Clearing Cor¬
foreign policy and the essential, poration of Philadelphia. John P,
unity at home which these diffi¬ Hart, Vice-President and Director
Charles
A. Taggart,
is the
cult times require, we must have of
member of the Philadelphia Stock

regular
to

every

of propaganda and its tightly or¬
ganized agents, vastly more pow¬
erful than their numbers, using
fellow travelers in every walk of
life.
You, the American Legion,
as a group, have
long and vigor¬ pie fullest participation in the
ously fought this menace of Com¬ shaping of policy in advance by

Exchange.

(928)

THE

COMMERCIAL & FINANCIAL
CHRONICLE
j-iiiusuay,

„

KepieSSea

—

most

orderly,
unbalanced
and
hap¬
hazard, and are stifling produc¬
are

eoing

between

course

and

the

United

order

understand
the
deplorable condition of

present

Europe

member

not

that

enough

has

re¬

been

im¬

poverished by the war. What we
must realize, in
addition, is that
there is something
fundamentally
wrong about the economy as a
process
a
functional
deficiency
which
deprives most

European

countries

potentialities
is

even

using
still

economic
or

which

aggravating the impover¬

ishment.

Unfortunately,

little

efforts

give

the

have

right

deficiency, and
the

the
left

present

far

been

made

diagnosis
I

too

this

submit

generous

Mr.

that, if
project of

Marshall
materializes, as
first step an international
counci
of economic

other:

are

the

rates

that

The

Collectivism The Root
It is this

new

inflationary
by

pressure,

and

Financial

1947,

Chronicle"

analysis of the

Feb.

27,

worst case

which is that of
marized my
that

the

Germany

can

catastrophe of
understood

the complete
breakdown of a pol¬
icy of repressed inflation. But if
Germany is the worst case it is
not the
only one in Europe. Re?
pressed inflation is,

indeed,

economic
of

cancer

the

of the most
part

also

the

inflation

machinery

because

combination

and inflation has the

„.

J.A.

the

created

hard

work

who

artificially

by
doctrinaire

have

been

amaz-

ingly successful in
solving the
difficult problem of
how to make
a
"hard"
currency "soft." It has

This

collectivism

the

ground that it is the

and

because

true.

case of

England

which

making
^on bas

flationary
Secondly,

the

less

ever

disproportion

repression.

Then

until,

ary

the end, distribution

becomes more unjust
might have been without

governmental
pressure the system of
will

the

than

ever

country

^
a

wullt+J
country

pro-

will

so^

iust

"""vvin

present-day Europe.

as
+/-.

rich

fYfYY*

consequence of the war and of
bad economic
management after
the war we observe
almost

trust
the

i^coM^nt ^ dtsobe dience^1 dis
and

bewilderment

coverSt

ohoipp

admit

has
its

Finally

inly

defeat

Prime

Minister

through the
end

both to

repression. The
a
Y
f
P? axamPie °f a. coanl*y
wnicn let tne opportunity slip is

ifteFJ also the foment
rep^sfecl in^a""

•

?aLe
potential

hid

been kept

checkduring the
n VnecK aunng ine occupation by
ny
a

ruthless

regime

of ; price

and

wage controls. But instead of set-

ting France

com-

„

too late to
say 'it can't
here.' It has
is

with

stroke

one

sound

m0netarv and

....

happened."

economic
first

„

it ever
was,

eyen

any

act

conditions
of

the

almost

new

the

government

semblance

through. At

success
*

defend

trol of
wages.

All those

who

the crossroads of 1944
T

are

of still being
impressed by the Hitler
evoking the bogey, experiment of
repressed inflation
of the rich who, without repressed
-in fact

William Elwell with
Loewi Trading
Dept.

have recourse to the
most
brutal mea- inflation> w°uld not leave
socialists, planners,
every
sures
enough, and
where in
advocates
of
and Stalin There to eat for the rest
Europe a serious infla¬
^controlled"
of the
P°Pula" economy all
can hardlv be
tion in the sense of a
over
anv doubt that
the world
noticeable
untion< 11 is surely grotesque to do
-fshould not
less repressed
increase of the volume of
forget that a fairly
inflation will be this in the "doux pays de
mopey
France." successful control
relative to a very slow
stopped in time it sets in motion Wken the
of wages has
MILWAUKEE, WIS.—Loewi &
good king
recovery
Henry -IV pf been an indispensable
a
of production. If the
Co.,, 225 East Mason Street, has
cumulative process
^
which fin- France promised the French
government
pmrt of the
the formidable
would admit an
machinery of repres- announced that William C. Elwell
"open" inflation ally may end in the complete Proverbial chicken for
every Sum- sion of the
has jolned its
this
disproportion between the decay of the economy and in the
Third-Reich But they
Trading Departwe may safely presume that must also not
volume of money and that
practical dissolution of
overlook the: awk- ment
of com
democratic
notmmd to achieve this ward truth that such a
Mr. Elwell has been
modifies would result in
government.
y
with the
the well
control of
J
modern combination of wages can
known consequence of a
Not to see this
iNot to
hardly be enforced for trading department of The Miltms vicious
genera
vicious circle of meat
circle oi
coupons and inflationary any length of
increase of prices,
waubee
Company for the past
-fene, against the
incomes, and repressed inflation has been in- pressure.
*
three
formidable pressure of
foreign exchanges. Now our
s
He is a graduate of
variably the iiiciiii CHUT of those ..France is a
inflation
vailawi-jr
uic
main error ui uiubc
b
.
gov
+b
and in face
very
bad
ernment has the
TTnivpr^tv of Wisconsin,
of the
ease, «"d m face of
who argue that it is
nressure
pressure of
university ot Wisconsin,
praiseworthy in
pt
preferable to
tention to avoid this
n°t so bad, of course, as organized labor,-without
having a
catastrophe continue this policy • until pro- Germany. But what
of an open
about Eng- government which, like
inflation. On the other duction has increased
^
that of the
With
enough both ^an(^- ff we analyze her economic Third
Fitch & CO.
hand, however, it does not
in order to
Reiclr, - supplements
act
relieve the pressure situation we find
the
special to the financial
chronicle
indeed that here economic by political
against the
of inflation and
repression.
inflationary dispro
to make it
possiaa°fber case of repressed inflaKANSAS
portion between
money and goods ble to dismantle the
^nce the control of wages col- Harvey hasCITY, MO.—Frank C.
machinery of tl0n ^hose consequences are not laPses, however, the
become
either, be it that it has not the repression.
associated
whole system
They fail to realize essentially different from
with
those in °?
w,
strength to do so (as the
Barret, Fitch & Co.,-Inc.,
repression will soon
^
A_
go
to 1004
Italian that it is exactly repressed
and
Baltimore Avenue.' He was
infla—|
or Germany. As time goes pieces and give way to
French
governments being tion which is stifling
open innroduction
on
becomes more and more nation
pestered by the
and that the
camouflaged perhaps by previously with Hebrick, Wadd'eli
longer
communists), be
& Co. Inc
wait to doubtful whether the
it that it will
remnants of effective
economic
not give
break up the vicious
price control
''
*
up
an
;
circle the
on
economic
particular markets
more
policy ("full
can still be
(especially i
r*
illusionary becomes the hope exPlained entire y by the
employ¬
r>
•
for
r\
mment,
r\cc'M
hous^ rents) and by a still
cheap money policy," or that increased production
poverishment brought about
Office
may
expensive socialist
by working machinery of
solve the
the war, and
problem
exchange In
experiments)
more and more
which
automatically.
Nev.
k
is
ex¬
'
incompatible with a Most of these advocates of
perts come to the
re¬
sound
conclusion that
RENO, NEV.—L. E. Grimes will
monetary system. In other pressed inflation
Wage control is
in
certainly the engage in a
France, in it is again the combination
words, our government
securities business
of key-stone of an
wants to Germany, and elsewhere—are still
effective system from
have it both
offices at the Hotel
socialism and
Golden,
ways. What does it
inflationary pres- of repressed inflation and, there- In the past he
ao?
consideping the problem in terms sure
was associated with
fore, of socialism in
Remembering the example of of a
(caused
general. As
by
the
"cheap long as this
Walston, Hoffman & Goodwin and
besieged fortress where a
is
being enforced it is H. R.
money" policy) which is
Baker & Co. of
stifling generally possible to
San Frankeep the cisco.

^f hitler

^y
h?ud

„

Jough

...

Barret,

•

succeeds

was a wage
and more
increase of 40%. At
difficult to enforce the
thG
different controls.
m
ti
mnqt
;
/
' '
f. ^ time, most exnensive
expepsi
Repressed inflation cannot
have hationalizations were
e&rrifid

the Sreatly damaged prestige

thi socialism
to

tried

after the end

carried

11LC\*l"&

destruc-

linlonn

unless

which seized the
opin
time
is
Belgium

war

Widespread European Inflation
Let us
briefly recall what we
mean by
"repressed" inflation. As

also

now

At the
§ame time, we observe that
also in
England it becomes more

only repressed inflation
explains the
strange fact
a country like France, whose

that

through the ordeal

immediately

^he

+?r

fact remains that
the
physical basis of our
liberties has
been cut
right away, The government. controls it all.
The Parliamentary basis is fast
going. The
mechanism for the total

happen

that, after
the effects of

inflation,

PqiiCy 0f making

are

is already

the
open

breaking

convinced,
wittingly take advant- f raYc?l.

tioij of j freedom

outstanding example in Europe of

not

of the power

age

plete. It

which

duction, chaos, and stagnation

imperative to do

sound monetary conditions,

compulsory

become

away with repressed inflation and
to. re-establish a competitive order

Counter-

fictitious. Lack of balanced

destitution

which makes

vicious circle where
with increased
inflationary presa

and

who,

wages,

unused

up the vicious circle
in which it is
now involved. The

this

they have: unfavor, i.e. the just distribution of
witfrngly they have already done
goods becomes ever more illusion- so.-put the

to increase the counter-

entering

men

collapsing. Once

passes

infiation

infla-

when the system
of

moment

bas to pass

only ln less production

would not

moment, then, for

come

between money and
goods while
the least that can
be claimed in its

effect

an end of
repressed

repressed

check,

consists

stagnation

the

kaving experienced

in-

for

price

success

repressive
to over-

country is on the road
inflation which means

productivity
keep the

been

the point of

this

seems even

pressure

control, especially that

Crisis

price

had

crjtical

worse than Professor Jewkes
si»gFirst, it
seems
doub ful
whether even at the

downward spiral of
it will be possible
to

the op,

repressed inflation.

•

y
The

depression

contrary, if

way
economic 1

the

come

had to reckon
again with
nature of man. Unfortunately,
it
is
the
Rritisn
population which has to
pay for
this lesson which the
socialists

Ftie-lanir* Inflation

ing the economy
controls it is the

normal

have to learm

mopping up that excess
a
policy of free-

cannot be made
the
war
was

Once

prices
economic

is combined
with

over we

the

making an end
inflation before
the
money has become
ac-

the
eration of

X-r

European countries is char-

pressure

values

tive.

ever,

flationary pressure tends to mount
any resteadily. But the more it increases pression at all. So,
contrary to the
the more will the
government be theory of "distress
socialism,it

sure

excess

They

liberties.
is that just the
opposite is .un this point we read
TD
in the ex4
-PI
+ i«r.
Repressed inflation—which follont T.nnHAn IXTOolrlfr
cellent London
"Tima
weekly "Time &
is practically identical with
social- Tide" (March
8, 1947): "The presism today—not
only stabilizes but ent government
is composed of
even
increases the

•,

acterized by the fact that the in-

are

permanent.

tendency to become fashionable to defend the
socialist policy of all these
counephemeral
tries

time.

peace

and

depression. There is

the extreme national

dreaded

decreasing

incomes

but also in
impoverishment which leaves no the even
.more irighttul
compulsorily enforced, other choice. Our
sacrifice portunity
conclusion, how- of elementary rights and
.^ieh
longer it lasts the

values

many

logical atmosphere

situation

been

socialists

fictitious such values tend to become,
because they
correspond
ever less
truly to the real scales
of

just distribution because

European countries practic-

also

appTy'a'term wS

to be feared
from
0f repressed

collectivism was a
collectivism must be sue-

emergency of war one can appeal
to the spirit of sacrifice and
selfdenial, but this hectic
psycho-

with the main exception of
Sweden where a similar

involve the national
economy in
progressive disorder and economic
paralysis. It is a system, of
fictitious values
The

cessful

war,

keep down

pressure.

ugly

and

war

forget that

production
defeat the pur-

ing repressed inflation have been
devastated or impoverished
by the

collectivist

controls which tries to
the
inflationary

success

to"

thus

money with its
consequences of

the total cake

that

result of his efforts.
It has
always been the greaUmistakes of
British socialists to believe

balanced

even

pose of a

having

and

ought to be reserved
for the
op,
eration
of
reducing an active
volume of

his

because

the progressive
dissolution of the
whole system enhances
the importance of the black

budget deficit or by a
"cheap money" policy. We have has

Germany. I sum¬
findings by saying compelled

economic

better

but

Softening Hard

either

greater share

only

stultify the aim

and

money. Since this
surplus has
not

efforts-and that he will
get

own
a

it,

problem

All

repressed

however,

markets
with its exorbitant
prices.

type of repressed

inflation which corresponds to our
age of rampant collectivism. We
have inflation because we
have
collectivism which, as all
experiences
prove, leads invariably to
caused

question is how

overlook,

goods/ Any prolonged
policy
repressed inflation tends not

upward

do so and what
hannen in the meantime.

will

They

depends

LpluT,

inflationary

Jownward produc-

individuals to work harder unless
each one feels that his own standard of consumption

abol-

were

The unfortunate governis sitting
tight on the gusher

inflation

question of
would be able to

is.one of increased
production instead of the just distribution of a given amount

and

transactions are being made on
diagnosticians ought the
basis of these fictitious
values,
together in order to
The process of
define precisely the illness
repressed inflabefore
any treatment is applied. As a tion as we observe it today in

contribution to this
task,
published in the "Commercial

the

which

to be called

first

vicious

that, unless we want to make the
misery permanent or aggravate

costs,

upward

"control"

neutralize

now

pressure

driving prices,
of

ished.

working

long it is able to

maladjustment,
however,
those
are
largely responsible
themselves, because they insist on

War Not The Cause

men?

countries

States.

each

nressure

tries

There

pressure

masses

live if the repression

nressure

this

policies which keep their internal
price and cost structure out of
balance with that of the United

exchange

the

inter¬

For

the British Labor Govern-

how the

"planof all

reality,

coercion

inflation

and

countries

States.

sorts

against

conditions

these

two

and

t
moppinl

o/pretending

bylhe" chalSiiging

while
euphemistic

the

''control"

consist

sorts'

Europe be¬

economic

nfng"

fundamental mal¬

adjustment
of
regulating the

under

names

—like the Swiss franc—is "scarce"
in most countries of
a

t'he

ninsablei0mea1uresUwhTch,

cause they are such
by nature and
necessity
but
because
certain
policies make them so. The dollar

there is

emergency
"
Iffe&ual

combining

pean currencies are "soft" not be¬

cause

mon?,

and

poor not

lost

warf^ias

only be¬
much, but also
because we have, here in Europe,
not the right policies to replace
what we lost, as much and as
quickly as possible. Most Euro¬
cause

nifts

vitiated by policies which are dis¬

tion. We

checiTii

obvious,-however,
_

ii--

European
has been

process

Xllliupc

andlt%hieSplace

Tielp. In addition to that, however,
a

FllVAltA

needs

the economy
countries as

19«

«■

LCOnOXulC

iniI«HO»

and that, for that reason,
the
largest possible

war

she

production. As Professor J. Jewkes
at
pressure of
Of the
inflation in
vauvcl 01
University of Manchester it
has recently stated it
^
in the April
that «
Hitler, it forbids the ™ nf.,iWn ™t of noods
excess
of given amount
pressed inflation
goods has to be issue of "Lloyds Bank
must be
utjmanu
demand
to
Review : before
^
result
in
increased distributed
attacked
wage control break, a
rationally. They clmg ''We succeed merely m
breaks dS
rat**
preventing For before
thV" melancholv' ideal"
tore prices
thP virions
Prices and
of
a
the vicious upward sniral nf nrirps
linward
ana
at
spiral of prices hAon
xne
wages *2
2
free prices "poor-house
piaces of
ox.
xxc
been adjusted
y
.? Udvfi
p
to +u~
the
socialism"; they de- at the cost 9f having a vicious
which are
inflations!
automatically balancing fend their system bv arguing that downward
increases of the
oVstrm by
volume of
spiral of productivity,
it is still
Qn the endeavors
possible to restore
aC°
of the Labor
tv
another
svstem misery
equilibrium between
equally (if they do not go Government to exhort
the workers
which
money
ditting the
of
en to
commodities by
length
to more production he comments:
the
simply
been both
like
up
the

(Continued from first page)
the

September 4

DaMVACCAiI Tlttl a tion — fl

France

we^

•

d^cultjes in England

Opens

C0wr0l'„

Reno,

—

{Volume 166

^Number-4626

THE

COMMERCIAL

neutralized.

the time to have thought of all this

politicians, almost without exception,

the

win. favor in this

appeal

now

source

reservoir of

enormous

loan of

hasten¬

effort to

nomic Indian "medicine man" than of

not to make use of these bonds (except
trifling investment income or

almost

But

as a
as

near

economic

war

many years,

the

hygiene.

now

If this

this

almost said

nearly all of it—rests logically upon reasoning
very similar to that here under analysis.
President Truman
is commonly supposed to have "deserted" the New Deal.
In
a certain sense
possibly he has, but an examination of his
policies strongly suggests that in this respect he has no
clearer insight into the basic nature of economic processes
than had his predecessor.
Economically, the government in
Washington is still much inclined to insist that the voter
"eat what he pleases," and then
belatedly to think of the
bicarbonate.

hypertension in political circles

about the danger of "inflation"—a term which in popu¬
lar and political usage is synonymous with higher prices,

particularly higher retail prices of the necessaries of life,
What is at the bottom of these higher prices?
What is

the real basis for expectation that they may rise further
f in the months to come?
If we wish to reach a real
i

understanding of the subject we must, of course, go behind current persiflage about "backlogs," "profiteer-

j
7

ing," "conspiracies," and the like. "Backlogs" do not
just rise up out of the bogs at night to plague man like

•

the "miasmas" of years gone

by.
"Profiteering" is not
normal, competitive economy.
"Conspiracies" are likely for the most part to be figments of
the imagination under conditions such as those which
now exist.
/:
'

long possible in
■

j
■j:

Effects of War

"total

war," without sowing the seeds bf inflation, would be
very nearly if not wholly beyond the ability of ordinary men
The point is that the war did create these
inflationary ele¬
ments—did

system and

inject these toxic substances into the economic
no concoction, whether bicarbonate of soda or

some

other, unless it be a treatment which eliminates the
poison will in the long run prevent these causes from pro¬
ducing their natural effects. Least of all, appeals to labor
leaders and labor unions not to press the advantages pro¬
vided them

by law and current conditions, and requests that
business voluntarily reduce, or at all events, stabilize prices
at the
expense

mark.
,

of profits,

are

likely to fall far short of the

stock,
notably
brood
sold for lack of feed.
Since prices will be much higher

prices upward are the outgrowth of unavoidable (human¬
ly speaking) war pressures.
Some of them stem from
the years prior to the outbreak of World War II; some of
them
war;

are

and

the products of avoidable blunders during the
some

of them have

events which have

come

their roots primarily in

to pass

since the

war. *

A brief

inspection of record will make the situation clear.
after the New Deal

was

Soon

installed in Washington in 1933,

when

than the

opinion
with

method

taking

interview
white-haired,
genial

poll.

the

But

banker

Street

"Fi¬

the

for

The hitch will

you-hit-the-nail-on-therhead let¬
ters to

guarantee his backroom as
trustworthy sampling place.

"We
year

hit

bound

were

bad

pretty soon," Mr. Baylor said,
over the brown grass
courthouse square.
"As a

looking out
of

the

matter of

lot of people be¬
too good to be
true, certainly too good to last.
We may not be exactly hog fat
out here, but we've got enough
fact,

lieved things were

meat
a

several of them."

year

bones to sit out

our

bad

of
merchants
in deposits and then
dropped into the backroom for a
chat bore Mr. Baylor out. SigourThe

testimony

who brought

population 2200, is the seat
County in the south¬
corner of Iowa and depends
existence solely on the farm

Keokuk

east
for

Quite a few merchants have

trade.

to get hold of enough
material during the last year for
managed

and other reno¬

store fronts

new

None boasts an escalator,

vations.

super-markets
and
landmarks
of
up-to-date
but

other
mer¬

chandising are here.
household

dealer

appli¬

reported fairly good luck in

ances

stocking washing machines, which
are
selling readily for cash, but
the demand for cooking ranges

refrigerators is far beyond his
ability to meet. From all he can
learn from manufacturers, it will
and

another three or four years

to fill his

There

present orders.
reasons

are

for the great

demand other than war-time ces¬

sation of manufacture and

cash.
The
is revolutionizing her

ervoir

consumer

wife

farm

kitchen.

res¬

high

she

line

to buy—an
electric range, refrigerator* vacu¬
um clearer**and other appliances.
If .electrification
in
the
near
future, appears unlikely, she is
is

buying—or trying

grams

of action" included not only tangible acts on the

huge

range,

differs

With disappearance of the
wood - and - coal - burning
the modern farm kitchen
not a whit from that of the

con¬

very concepts it now finds troublesome if not dangerous.

"Under-consumption"
One of these

the doctrine of

"under-consumption."
This notion still crops up now and then.
It involves not only
an
imaginary want of "purchasing power," but some sort of
ill-defined disinclination on the part of the people to con¬
sume—a failure which may and often does induce depression.
was

the world food situ¬
it is, the farmer

Either way,

men have simi¬
Automobile dealers
charge blackmarket
fellow-merchants or

hesitate

prices
other

customers

must

live

for

the

include

And

cessories.

dealers
ment

with whom they
long

maximum
talk is

blackmarket

with

They
of

ac¬

that some

agree¬

miles

away

By selling 30
wrath of

the

consumer

impact

major

will

the

Brood
market
be

sows

will

soon

moving to

the farmer

can

roughly sure of the size of his

crop

which ought to be soon.
the crop of fall piga

—

That

means

which would have been ready for

market

six

eight

months

curtailedwhile," Mr. Baylor said. "The Shortage of corn also means less
cattle feeding. Should corn go to
wet spring kept farmers close to
their fields once they were able $3 a bushel, which seems possible,
the price of meat on the table
to get into them. But bank clear¬
will almost surpass belief.
ings have gone along about the
If drought hangs on for several
same.
In the 'twenties the mer¬
,
. well, nobody talks about
chants were mostly in debt when years
that.
the depression hit.
Now they've
"Barring real bad luck," Mr.
got a nice cushion for a recession
or
a
bad year—and there's
no Baylor said, "we're in a strong
certainty that the drought means position out here. You've got to
credit
the
farmer
with
being
a bad year for them."
smart this trip.
He paid off his
The
farmer readily expresses
debts, put money aside, and he
sympathy for city dwellers as corn
has tried to buy the basic things
and
consequently hog prospects
he needs. In short, he's been but¬
Worsen.
(The Aug. 22 copy of the
toning up for a storm. Don't get
Des Moines "Register" lying on
the impression that he's rich. But
Mr. Baylor's desk bannered "Corn
I think the farmer is more inde¬
Crop to Hit 11-Year Low," and
than he's been in 40
the weatherman offered no glim¬ pendent
will

tremendously

of hope

mer

inside

But

week.)

jab the farmer on the sore point
of last year's high food prices and
he jumps irritably. He is extreme¬
ly sensitive to any implication of
his profiteering.
city fellow doesn't take a
things into account," the

"The
lot

expressed

"In the first
place, cost of production has gone
up 200%, maybe more. I pay my
hired hand $175 a month besides
house and garden.
And, brother,
I come mighty near throwing in a
sympathy declared.

Farmers

'sir' when I address him.

coining money the way

aren't

people

ting the dirty end of the stick all
through the 'twenties."

Baylor, a keen observer of
farmer psychology, thinks there
Mr.

be a deeper-lying reason.
Most farmers decry soil conserva¬

may

payments and other sub¬
excusing their acceptance
with a, "Well, everybody else is
taking them." But in their hearts
farmers
expect
another "bust"
and consequently they have a fear
perhaps unconscious — that the
agricultural
program
will be
scrapped if the nation gets an
idea that farmers are rolling in

tion

sidies,

never

man

out

anti-Triple

clared Mr.
himself

lican.

platform,"

de¬

Baylor, who describes
a conservative Repub¬

candidate

trying

"That

Presi¬

to pick

He cited the
ary.

checks."

ever-normal gran¬

Last year farmers were able
their corn and receive a

seal

towns

our

means

are

coming back into their own," he
,

went

"Every store building is

on.

occupied and not a house is va¬
cant.
Buildings are going up as
fast as materials become avail¬
able. I don't know whether there
is

movement

big

back

to the

small towns and farms, and there

There's all kinds of

ought to be.
where

the

near

solid

luck

the last

Main Street will be on

few years,
as

If farmers hold any¬

here.

work

basis

half

century

ago."

Streeters

Main

and

Farmers

alike

watching political

are

ma-

neuverings for 1948 without much
President
Truman

excitement.
has

gained from his low ebb of a

year

doubt

ago,
that

outside

but

there

appears

at least
vote Re¬

Midwest,

the

cities,

the

will

Polls show Dewey still
but that seems to be

publican.

in the lead,

because no one has struck
a real spark.
Most people say they
would like to see a dark horse—
only

but they

have no one in mind.

Doubtless the apathy stems to a

large extent from discouragement
with world affairs.
The UN is
still

supported,
but
diminished notice¬

strongly

faith in it has

ably since last year—not because
of anything it has or has not done,
but owing to the emergence of
Russia and the United States as
the

world's

overshadowing

and

seemingly opposing powers. There
is more talk of the inevitability
of

war

than a year ago,

desperate

hope

that

with the
can

avoided.

farm state delegates by prom¬

ising to cut out benefit

Congress¬

getting elected on

"And I don't see any

dential
up

heard

here

years.

think. Anyhow, I
didn't see the city fellow rushing
to the rescue when we w.ere get¬
of

lot

colleagues in adjacent

trading territories.
or

time.

the

drought.

druggist or somebody without
big backlog of orders—will re¬
port business off a little for a

Other business

lar backlogs.

that the

sure

suffer

wealth.

town.

vince the rank and file of the country of some of the

less.

—

chasing power," but "educational" propaganda to

longer but the expense would

take

body economic.

farmer who had earlier

range.

part of the authorities to "create" and distribute "pur¬

is extravagant,

It the cost

ished.

brought him enough

summer

"programs of action"

"pro¬

course,

profits taken from this year's, sales
will be wjped out. In a pinch the
farmer can always rebuild from
a small breeder base.
That would

last

build

These

come,

when farmlots have to be replen¬

neighbors is avoided. The same
holds roughly true of the farm
implement trade.
"Occasionally a business man

nancial & Commercial Chronicle"

aiming:
at
a
kerosene-burning
refrigerator and a compressed gas

them.

priginal cost, momentary

profits will be great.

(Continued from first page)
scientific

it adopted certain tenets and proceeded with abandon to
upon

are

sows,

Report irom Main Street

take

But not nearly all the forces now tending to drive

The cash take

breeding

feels

ney,

Of course, the current situation is
largely dominated by
the effects of the war and the
way in which it was conducted
and financed.
It may be conceded that to fight' a modern
»

aren't

farmers

ation being what

Main

Take this current

true of the

That is one

poor crop.

reasons

will be increased when part of the

The way to physical health is not found in "eating what
please," but in avoiding injurious foods. For such sanity
action, nostrums are no substitute.
All of which is

the

greatly distressed.

year's

begins to pinch the attack is directed not at the
union monopolies but at employers!
This procedure to
many of us appears on a par with the administration of
large doses of quinine in the hope of curing cancer!

the

only instance of essentially this sort of
procedure, it might be passed by as of secondary importance,
but unfortunately there are many, many more.
Indeed, if
the truth be told, a large part of the New Deal — we had
were

price of hogs to be fattened
help offset the loss on

with it will

the shoe

Many Other Instances

drought-boosted price for
year's corn and

The

what is left of last

and trouble¬

And

$2.25
farmer*

average

ernment help.

spects stronger than government itself.

the water."

the

able to hold his corn without gov¬

"purchasing power."
They in pur¬
carefully laid plans, created a large group of
monopolies in the labor field—monopolies in many re¬

swim provided she did not "go

was

better off than for
might not have been

though

even

suance

bushel.

The

bushel.

and during the

than create unnecessary

amounts

some

of reserve for emergency) will appear to many
holders very much like the permission given the "dar¬
a

developments before the

hostilities did

sort

ling daughter" to take

sane

The

$1.09

farmers have been selling at

up" purchasing power, as well as those
now
being made the recipients of more of it in the form of
"terminal leave" bonds, to forego use of their funds on the
strength of the word of the politicians that over-consumption
(or attempts at it) rather than under-consumption is the
danger of the day.
All of which smacks more of the eco¬

votes.

give expres¬
notion, omitting mention of it ordinarily only
they fear "inflation," have now to persuade the
this

millions with "stored

when

was

were

ing to issue these bonds to the veterans in

biggest crop in history and a lot
of it was sealed.
Lately many

when

bonds—in the thought that in this manner the introduc¬
tion of a highly inflationary factor into the economy at
juncture could be prevented

(929)

Somehow the authorities who ate not hesitant to

(Continued from first page)

course,

CHRONICLE

sion

As We See It

this

FINANCIAL

And so,

solvent but worried, the

Middlewest has a wistful hope
that a miracle man will turn up
in the election race

next year.

(930)

THE

COMMERCIAL

FINANCIAL

CHRONICLE
BANK

Future of the Bank for International Settlements
and the Marshall Plan
(Continued from page 2)
j
President [Thomas H. McKittrick,

spring of 1946 to locate
international institutions
in Washington rather than in
New

National

Bank]

for

with Hitler'

ness

ther

'doing

and

busi¬

stated

that
'the U.
S.
time criticism has

war

tne

vice president of the Chase

now a

given

not

fail

its

first

proved
rect"

year

that

not be

business

airlines

and

The

railroads

and

general

•

Washington
parently
able

the

two

officials

all

answer

"The

questions

satisfactory

Federal

tives

full

re¬

the

are

arguments

ignoring the Bretton Woods
lution.'^

in
for

reso¬

Dr.

White, the protagonist in
fight against the B.I.S., was
eventually
appointed
American
the

executive director of the
Interna
tional
Monetary Fund; but he re¬

signed

from

that

position

some

time ago and has left
Government
service apparently for
good. The

Bank,

the other hand, has been

able to survive all
the attacks
from official and
unofficial
quar¬

ters and has continued operations
on

small scale.

Thus, the struggle has ended
with victory for the
defendant
and

retirement

the

The result
having
mined in this

plaintiff.

been

deter¬

fashion, the

matter

might be considered closed.
How¬
ever, it may be worthwhile
to

look beyond the
surface to deter¬
mine the real forces and
interests
engaged in the argument.

Treasury
in

vs.

Wall Street

The fight against the
B.I.S. was,
fact, merely an incident in
the

New

Deal

Main

antagonism

Street

between

(as

represented by
and
Wall
Street

Treasury)

(represented by the
banks). Durjg
the 'twenties the Central
"anks

had

dominated
internaiional financial
policies and
they
mainly responsible for the
<
rganization of the
B.I.S. as a
eans of Central
Bank cooperaion.

were

The

great

depression

led

New

of
the
banks
in
the
nited States while
the Treasury
rose
to
a
dominating position.
bus, the Tripartite Pact
of 1936
which was
designed to stabilize
the rates of
dollar, pound sterling
a^d French
franc was
r

ment

agree¬

among national treasuries
rather than the
central banks as
'--eviously (however, the plans
f~r the Pact
largely originated a
P I.S.

headquarters

When

the

Basle).

plans for post-war
stabilization were
pre¬
which

both

York

operation

assure

between

financial

Three

after

years

eventually

culmi-

ated in the
Bretton Woods
agree¬

ments,
rnd

the

Treasury

careful

tion

was

preserve

supremacy.

This,
ever, required
elimination
F I.S.

which

enpeared the
f"<r

carrying

how¬
of

the

out the

stabilization

the

a
strong posi¬
institutions. At

two

the same
time, those influences
which opposed the B.I.S.
have disappeared from the
public scene,
As a
result, there seems to be
a
chance, at last, to discuss problems of the B.I.S. in
an
atmos-

phere of calm
one

and

reason

rather

emotion

and antagonism.
This is quite
important at a time
when the Marshall Plan
may offer
the Bank new
opportunities for
useful activities., In
order to determlne as to whether
such op*1
mV
portunltles actually
exist, it will
be
necessary to discuss briefly the
Bank's organization and
present
financial situation.
...

^
11—

—

-J-

•-»-

Organization
*

+'' '+}

K>ven

Bank

various

B.I.S.

and

Accordingly,

one

its
as
as

some

other minor
reparation pay¬
This close connection
with
German reparations is
empha¬
sized by an
express provision in
the statutes (Art.
55)
that the
Bank "shall not in
any case be
liquidated
before
it
has
dis¬
charged all the obligations
which
it has assumed under
the Plan."
ments.

Sometime

and

problems of
Germany's ex¬
ternal and internal debts
and obligations will have to be
settled,
The future of the
B.I.S.

accusations

the

them

30%

are

United

Japan.

will

hold

17%.

some

The

have

BI s

iarge

elect

may

fact,

additional

maximum

the

director on the board
since the
Bank started
operations.
At this time the board
consists
of 11
members from the
following
countries:

Belgium
France

Great Britain

'Sweden

;

....

activities,

both

reparation

not

influence
"umcucc

The second
important task
to

promoting
the

the

B.I.S.

was

that

cooperation

European

appears

directors

virtually

pean central banks

the

activities of

and

are

that

rate, the Western Euro
countries together with the
United States have
sufficient vot

Dur-

participated in

the

B.I.S.

the

most

also

important

including the statutes
tensive

This

bibliography.

the

official
as

years.

helpful guide

Bank's

presents

well

peculiar
texts

documents
as

power

to determine the
pollB.I.S. in accordance

the

own

ex¬

interests.

total

future of the B.I.S. will have to
give consideration to its
financial
position.
Thus the most recent
financial statements of
the Bank

wil1 be analyzed briefly,
shall

provlde that tte
be

kept

in Swiss

gold francs; this practice
tinued even after the

was con

franc

valuation
rencies

are

1936.

valued

Other

official

the basis of
price for gold
s
Treasury Department.
The following
statement shows
in
addition to the
amounts
in
Swiss gold francs the
equivalent
in U. S. dollars at the
_

of the jj

conversion

rate of $.3244 for

one

franc.

125.00

40.54

19.87

6.45

161.91

less

assets

than

continue
tions.
1

and

of the Bank

intends

ments

become

opera¬

ment."

V '

expand

due

•

for

According to

Second, and

closely related

ance

ment

almost

60%

Note

"the

'iV:!

the Bal¬

Bank's

commit¬

respect to the Annuity
Account Deposits
is not

Trust

clearly established, but it is stated
at its maximum
amount in Swiss
gold francs.":
>

Yopng Plan; investments in Ger¬
represent

Sheet

repay¬

,
L

the

many

furnish it with fair

compensation before making any
final
settlement by whicn the
long-term deposits of the Govern¬

first
question, the, balance
sheet Js dominated by the Bank's
activities in connection with the

total

given it special rights
guaraniees.
Any change on

legal position created
in 1930 must,
therefore, in all cir¬
cumstances fully respect tne rights

$50

(excluding

need additional funds if it

also

ments in the

re¬

assets.

additional

presented

The Bank's latest annual
report
discusses these items at consider¬

gard

information

the report

with re¬

the item "Contingencies)
Miscellaneous." If the B.I.S,

and

con¬

has

followed a commbn practice
version of Reichsmark into
Swiss
of banks on the
gold francs has been made at the
European Con¬
tinent this item should incliide
rate
"as defined' in the
Hague
Agreements"; this means on the mainly part of the Bank's own re¬
serves.
This is made probable
basis of gold marks.
by
the remark
in the 'report that
The German claims are broken
there has been "reinstated a
sum
down as follows:
which had hitherto been
applied
Millions Swiss
to

Gold Francs

Reichsbank and Golddiskontbank
German Treasury
German Ry. and Postal

70.2
to

Administrations

shown

are

has

been

par

added

since

(76.2

the

mill.

Swiss gold
francs) is practically
equal in amount to the
long-term
deposit of that Government

(76.3

bill. Swiss gold
francs)."

There is
of

the

need

for

long-term depositors
the^Bank

discus¬

value

The

makes

this
i

main

the

and,

cular, the

currency
repayment when

observa¬

every year

annual

Bank.

currencies

sheet

and

can

the

not

Seventeenth

1947,

new
•

■

ration
need

Since all of the repa¬

creditors

are

urgent

new funds from
abroad,
there should be no
difficulty in in¬

and

when

the

need

"current"

in
or

dollars

consist
with

and

ex¬

Swiss

investments

forward

repur¬

chases of gold." "The Bank holds
assets in gold at each of the
places
where gold deposits are
repayable
and in short-term and term funds
in the same
currencies as the cor¬

responding

deposits, in nil cases

substantially

Report

April 1,
Basle, Junev 12,

furnish unconditional declarations

obligations, but posits

Annual
31,. 1947.
159-161.

March
pp.

placed

of preference in
favor of the new

connected

the

doubt, how¬

only

...

kind

some

Such result
may be achieved by
having the Young Plan creditors

francs,

Agreement
documents forming part

thereof have

offer

mainder is at short-term and

that the Hague

the Bank certain

1946

investors.

pressed

•

"There
ever,

have

assets
of
the
B.I.S. consist Of gold held
"chiefly
Berne, New York and London
and almost the whole of the re¬

the

in the Note

balance

parti¬

deposits
become due have never been
clearly defined as has in fact been
stated

special safeguards to such

The

may

the

will

rations

conditions

it
of

should arise.

"The

deposits

ducing them to sign those decla¬

cir¬

connection

these

procedure

provided for in the statutes.
and when the Bank should be in¬
terested in attracting new

depositors.
a

realizable

German claims.

cumstances.
tions:

question."

The legal situation with
regard
the assets and liabilities under

ly a complex one and probably
will have to be settled
eventually
under the arbitration

15, 1945 when payments
discontinued.
"The
direct

these

ac¬

the

the Hague Agreements is certain¬

and

claim which the Bank has
German Government

sion

and

from

291.2

interest
were

assets

109.9

■

April

deducted

amount of the assets in

105.1

—

i,.

revaluation

cordingly

cur¬

|i the official selling

and

comparatively

and

question refers to .the
rights of the

Financial Position of the
BXS.
All
proposals
regarding > the

The statutes
accounts

114.92

the part of the Creditor Govern¬

those invested in
Germany) about
$67 million. This raises the ques¬
tion as to whether the Bank will

claims

pean

as¬

the study still
is
introduction to the

amount

have

the

Bills and bonds
evidencing the

all

from countries now
at the Paris confer-

At any

with their

all Euro-

important

problems.

serves

are

Capital

First,

provided for in the Bank stat
utes have never taken
their seats
on the board.

^ling

between

central banks.

mg the 1930s

amounts shown

■

ofefht»yp^i"^"^.-.e„l0pment|eieS
future.
of the Bank in
the

signed

figures.

small.

Switzerland

31.06

—

able length 8 It is stated that

Italy
Netherlands

74.26

97.62

■

some

nationality

sheet

ance

million,

70% of the voteg> The
head of
each v/jl these
0f iriicoc luunuics
countries' remicu
central
bank is director ex
officio; he has
the
right
to
app0int
another
director of his own
heads

228.91

issued

and

Two important facts are
appar¬
ent from an analysis of the bal¬

and

control

<;':V

themselves

3.12
5.88

—-

— — — —

200,000 shares of
2,500 Swiss gold francs each 25% paid in
Reserves

(Belgium,
Great
Britain,
Italy,
Germany, Japan) which

among

•

Authorized

the

among

commitments will

Capital—

stockholders

France,

9.61
18.12

499.13

—

now

directors of the
ia dominated
by the seven

u.s.A

161.91

354.26

—

Deposits received in application of
provisions of the Hague Agreement of 1930
Provisions for Contingencies and Miscellaneous

The position of these
30%
in the balance and will
to
be
determined in the
board

.16

ong term

stock)

Germany

94.45

—\ >r

—-

peace treaties,

The

67.30

.50

Liabilities and Capital—

remaining

distributed

States,

present and future.
This discus¬
sion is based
upon the assumption
that such
segregation is
actually
feasible and that these

3.28

291.16

—

Short term and sight
Deposits—
Various currencies
Gold

now

499.13

In that event

institution

participating
greatly affected by the
possibili- ence
on the Marshall
ties of
Plan. Inci
segregating these reparation commitments
dentally, the American directors
form its curbanking

1930-

some«way

the

rent

principal tasks has been to act
Trustee for German as well

ment

ex¬

Netherlands,
ILLSSweden and Switzerland have had
German repa

Plan
agreement
rations.?

Thus

discusses

the

explanations
documents submitted
by the
representatives referred to
before.

in
■

the

directors

•

Ibid. Mr.
Better's article

the central banks
and France can appoint still another
director). These

■

rm,e
Against

declined

European nations

cast

11.48

10.12

Other assets

exer¬

of Germany

Bretton
a. coordinating
Woods
agency
agreements continued
the Treas
7 The
'""y's dominance.
leading American study on
the
This victory was B.I.S. is still
"The Bank for
confirmed by the hard
International
fought de¬ Settlements at Work" by Eleanor Lans¬
cision of the
ing Dulles (sister of
Savannah ConferRepublican foreign
affairs adviser John
Foster Dulles)
pu
5
lished in 1932.
"Clarification of International
Though the book dea.~
•an
Settlewith
developments during the first
T.Tnts Bank" by Herbert M.
two
Bratter, years of the Bank's
ommercial
and
operations
Financial Chronicle." these
only,
"'y 10, 1947.
were
its
most
6

J nrJn ndirectors
Vn!m« nine; in

has

financial

may

(the

and Duties ;

of the BIS

rp.

position

the

(all

again attained

tion

35.3§

3 months.—

in Germany in 1930-31 in ap¬
plication of provisions of the Hague agree¬

operation to prepare data for sub¬
mission
to
the
United
States
under the Marshall
Plan cast a
total of 53%
of the
votes; the
nations within the Russian
orbit

Treas¬

29.07

207.47

taking part in the Paris confer¬
ence
on
European economic co¬

ury's "decisive"
victory have been
largely lost and the banks have
once

Over

so.

The

Bretton

the

many observers
ready-made nucleus

rims.

Indeed,

eager

its posi

12.98

Up to 3 months...

high standing has been
designated

to do

institu¬

27.59
cn

iTunds invested

ercise this function.

and

and Acceptances—.—
interest

Bills (3-12 months)
Other Bills and Sundry Investments—

banks.

bank

co¬

domestic

Woods, the fruits

ime Funds

.50

Bills

reasury

were

another

•

currency

pared,

smooth

9.14

of the

central

representa¬
Fund and the

the

international
tions.

; ownfall

82.69

—

current acct. with banks

other

originally placed, except where

York.

Washington, had to be
replaced by banking
experts from

manner.

accepted

New

cials from

Reserve

appears
as

Bank, originally government offi¬

Bank of
New York has examined
carefully
these documents submitted
by the
B.I.S. representatives and the de¬
fense

office

institutions

countries where the shares

Moreover, American

were

garding the Bank's wartime activ¬
ities

open

Rediscountable

to the war;
banks were

meeting. Voting rights are
cised by the central banks

tually, the International Bank had

manager,
visited
and New York.
Ap¬

Francs

hand and

Sight funds at interest..

con-

The shares
carry no' right either
to attend or to
vote at the annual

caused

chairman, and Mr. Roger Auboin,

banking

than central

new

1947

acquired by banking groups

and

large travel
expenses for round trips between

American

Cash

In the case of Japan
the United States the shares

were

brought considerable addi¬

one.

Bank

SETTLEMENTS
March 31f

Gold in Bars and Coins-—

outstanding prior

European central

and

New York and
Washington. Even¬

its

neces¬

tional

practical

the

Sheet

Million

stockholders.

authorities until a few months
ago
when Mr. Maurice
Frere, its board

were

theoretically "cor¬

solution may

Balance

Swiss Gold

sists of 200,000 shares all of which

operations

set up

re¬
was

opportunity

case

proposed

sarily

but

official

present

The

seems

attacks

these

been

resentative Lord Keynes.

"who-

angle of the story
to be pretty well settled.
did

been

bill

dun-it"

B.I.S.

had

fur-, by most of the other member
countries, including Britain's rep-

never

supported by a
particulars'Thus the

The

York,

capital

INTERNATIONAL

Assets—

Europe may be particularly
important at this time,
The

FOR

Condensed

for

new

Treasury's

formally

pudiate

in the

ence

Thursday, September 4, 1947

greater than the de¬
in ouestion."
*

Up to 1942, the Bank was able
to distribute regularly a'dividend
6%; a reduced amount was paid

l of

Number 4626

166

Volume

COMMERCIAL

FINANCIAL CHRONICLE

(931)
r

V r

following years and
1945. I'or the last
three
years
amounts , available
after deducting the cost of admin¬
the two

for

since

none

assume

that his influence
has pre¬
up to now an agreement
between the Fund and
tne B.I.S.

Fund,

fairly

approximately 1.9 mill. Swiss gold
($ 62 mill.).

francs

the Bank's
financial situation leads to the
conclusion that there is no finan¬
cial reason why the Bank should
This brief review of

»'

Couritr

Austria

some

the decisions reached at the Bret-

Woods

ton

Conference, the \ fact

that

remains

the

whether the B.I.S. will need addi¬
most

institutions

the

without

clearer

following

tional

Paris

national

____

_~I

Belgium

•f

+
+

-j.

Great Britain

Greece

•

—

«...

national

Bank
has
granted
issued bonds, the Inter¬

active

last

those

facts

into

institu¬

regional institution

Europe.

It cannot have

policy-making
if

longer,
;

ever

rather, will
down

over-all
the

function
it had one,

have to

implement

any

Switzerland

policies

laid

side

the

question.^ It
exchange of views be¬

Yugoslavia

Danzig, Estonia, Latvia,
The

tional

ence j

discussions

the

led

of Mr.

1947.

1946;

fol¬

Mc.Cloy

agreement

put in writing

was

continued

were

lowing the election
and

fall

which

of April 17,

Accordingly, "the B.I.S. has

declared

itself ready to facilitate
all its possible means the

with

members

are

Fund

and

there has been

which

the

However,

well-known

not

are

B.I.S. had

tary

Europe especially by putting its

re¬

members

the

ment at the

disposal of the Inter¬

national Bank by furnishing to its
officials on .duty in Europe all the

system

Yet
the

Russian

"satellite"

members

to any

tendencies

have

into two parts.
be

in order to

take full advantage of

the experience of the B.I.S.
in

cers

the

troubled

European economics
On

the

makes

other

agreement

with

and finance.

hand, the report

reference

any

offi¬

fields

whatever

the

cooperation

International Monetary
This is surprising for sev¬
eral reasons. First of
all, the acti¬
vities of the B.I.S. are much more

Fund.

Closely

those

the

Fund in the short-term field than
to

those

the

Bank, which,

| fact, is hot

a bank in the custo¬
mary sens$ but rather an invest¬

ment company which makes long-

term loans out of funds which it
raises through the sale of its own
debentures. It seems almost in¬
conceivable that the B.I.S. should
he

able

siderable

operate
scale

coordination
•

Moreover,

any

with

the

con¬

closest

without

General
Was

ever

Manager of the Fund,
B.I.S. director until he took
his present assignment and,

thus, is probably

much inter¬
of the
two organizations.
However, this
apparent puzzle can probably be
solved by
remembering the fact
that the
leading antagonist of the
"•FS. has been
holding a leading
ested

the

very

cooperation

Position with the Fund until very

recently. It is probably correct to
9

Seventeenth Annual Report,

pp.

able

7-8.

may

significance at

split the Continent

If the B.I.S. should

have

This should be

trying.

cau¬

venture worth

If it should be successful,

Smaller Meat

who, in the future, should cast the
American»

votes

American
their
as

seats

the

two

should

those

countries

board

possible.
B.I.S. and Marshall Plan

One

principal

Marshall

nations

of "

Plan

the
the

slaughter of 36 to 37

the

whole

Europe

interests

common

Continent

least

ing

work

out

end of the year of 4
This decrease

million head.

the number of cattle

head, or to
hand at the

about the number
beginning of 1942,

right after our entry into the war,
and would be 9 million less than

gravely attempts to expand in¬
ter-European
trade
and
hurts
so

every European

the

country.

record

peak

reached

at the

end of 1944.

ing ground and organization for
executing such decisions as the
Paris Conference may be able to

ities under the Marshall Plan.

agree

unique meet¬

Cows

Slaughtered

It hardly seems physically pos¬
sible to have a slaughter as large

upon

•

it will also be

nec-

to decide whether the Bank
should be continued as an outfit

sary

in order to avoid

Fund
and

confusion

the

Marshall Plan is still in

preliminary stage and thus there
is
no
way
of determining the

by representatives of the Govern¬
ments themselves as are the In¬

specific spot where the activities
of the B.I.S. could be fitted in to

Fund and
the International Bank in accord¬
ance with the Bretton Woods de¬
cisions. Since almost all the Euro¬

usual

proportion during the
next 4 months, it hardly seems
likely that the high rate of cattle
slaughter maintained during the

competition.

The

be staffed

greatest advantage.

of the central

ternational

Monetary

central

pean

banks

have

been

nationalized, the alternatives have
hardly
The

only

material significance.

any

United

States

exception.

should

may

any

determined

rate,

the

forthwith

collateral

case

debtor

country's default.
The

B.I.S.

may

assigned

prominent part in such

scheme.

It may

itself serve as trustee or it
may have supervision of the com¬
pany in charge of actual opera¬
tion of the plan.

Evidently,

could be

B.I.S.

the

helping to
carry out the
intentions of the
Marshall Plan for European re¬
habilitation; it might render im¬
portant services in a number of
ways. There will be a good many
extremely

useful

difficult problems, legal, economic
and financial. «But a satisfactory

defeatist manner.
Marshall

10 The

Plan—Aid

In¬

the

ternational Bank. "Commercial and Finan¬
cial

Chronicle," July 24, 1947,

recent

first half of the year can

be con¬
tinued to the end of the year, and
it

seems

Means Higher Prices

will propose to set up a com¬

mon

dollar pool to make possible

some

certain that it cannot be

According to long continued into 1948.
reports, the Paris Confer¬

ence

condition.

view

number

cattle

smaller

the

Assuming the present strong de¬

sort of stabilization of Euro¬

mand

for

beef

will

continue this

currencies.
If these pro¬ fall, and at present there are no
posals should be approved by the indications that it will not, one
Conference and the U. S. Govern¬ is justified in expecting very acment, the B.I.S. would be the tive packer competition at that
most appropriate organization to i time to obtain cattle that are in
pean

the

country

this

year

of steers,

years.

basis of indicated

the

sup¬

plies, there is reason to anticipate
that fewer cattle will be available
for

purchase

feeders this fall

number

the

that

and

as 36 or 37 million head without
a
considerable
increase
in the
toward the goal of
slaughter of cows this fall. Cows
any rate, it now represents one
European cooperation.
Its loca¬ are marketed for
slaughter in
of the strongest links still exist¬ tion
in the very centre of the
greatest numbers during the fall
ing between Western and Eastern Continent makes it easily acces¬
months, September to November,
to
all
European capitals when most of the herd
Europe in the economic and finan¬ sible
culling is
cial field.
particularly in comparison with done and stockmen are preparing
Certainly, there is a need for far-away Washington.
for winter.
Considering the in¬
redistributing shareholdings and
Moreover, the B.I.S; and its vestment value of a cow as a calf
voting power in the B.I.S. in ac¬ staff have long experience and producer and the current prices
cordance with present conditions. many
personal
contacts
with of calves, along with present in¬
But this will probably be feasible European governments and finan¬ come tax
rates, one can well ap¬
only within the framework of a cial institutions and it is fully preciate the cattleman's problem
general
reorganization
of
the aware of and familiar with their in deciding whether he should sell
Bank
including a settlement of peculiar and complex problems more than the usual proportion
the Young Plan accounts. It will and difficulties. Yet, as stated be¬ of cows this fall. You people out
then be advisable to eliminate the fore, there should be no compe¬ here in the
range country are in
Japanese participation and make tition between Basle and Wash¬ better position than I to guess
the Bank an exclusively European ington and no doubt regarding the what his decision will be. If cows
institution with the only excep¬ subordination of the B.I.S. to the are not marketed in more than

out

other recent

reduction in cattle num¬

would bring

practical

some

cellent and almost

States.

International

lion

procedures to cut through the
maze of red tape which hampers

However, it is not pos¬
predict future develop¬
ments
particularly if the B.I.S.
should assume certain responsibil¬

tion of the United

the

trust which,

and calves down to 76 or 77 mil¬

bers by the

part which is willing to cooperate.
The Paris Conference is now try¬

tinuation.

at the beginning of
and the large number
heifers, and calves since
taken for slaughter, the supplies
now remaining for slaughter and
to go to feed lots this fall must
be considerably smaller than in

sult in

the

that

sible

that

implement the
was suggested

Bank1** should set up and

million slaughter

head of cattle and calves this year,

should be able to provide an ex¬

recently

(Continued from page 13)

induce

purpose

this

members,

Plan,

Prices Ahead

soon

fact alone would warrant its con¬

active

Bank

Marsnall

Supply and Higher

take

and

directors

There is no doubt that the B.I.S.

continue

At that time

Fund.

Mr. Camille Gutt, the

This

are

time when there are such strong

to be appropriate."

International
Bank
has
established a permanent liaison
with B.I.S.
headquarters in Basle

countries

the B.I.S.

considerable

other form of cooperation
which in the future might appear

The

to be

interesting fact that all of the

essential facilities and every use¬
ful

information, without prejudice

seems

tional

important

beyond the limits of a

integrate
independent mone¬ their domestic economic, financial with the usual death losses and
at the time of
and monetary policies with a view practically no imports, would re¬
ijs

organization.

Monetary and Economic Depart¬

both

luctance to join the Fund by the
countries that were neutral in the
last war.
Most
of
the
nations

task of the International Bank in

;

B.I.S.

the

tious and reasonable credit policy.

Lithuania

with the activities of the Interna¬

say,

not

tween the B.I.S. and the Interna¬
in

of,

...

and solution does not appear to be im¬
one possible and the advantages are
hundred million dollars for de¬ clearly apparent. There is time to
posit with the B.I.S., each bank's tackle the problem of the B.I.S. in
share would be quite small and a positive rather than in a mere

together

fund

+
;

majority of the countries
participating at the Paris confer¬

Bank

busi¬

international
band

contribute to

Hungary

should

ness

Poland

Its

European urgent demand

interested

Rumania

The B.I.S. with

for such funds. If American banks

Finland

important

reports

and the

Bulgaria
i-*

tremendous need

to relieve the U. S.

experience in the Euro¬
financial field may perhaps

pean

;■+•+

Albania

Czechoslovakia

way

furnish the bridge between Amer¬
ican
private short-term capital

but

The Annual Report of the B.I.S.
makes some interesting comments
this

Sfe/M

years of

and

other

JL-

"***:*••-j-'

any

execute

Atlantic.

• +

and

reluctant

resume

construction.
..

Portugal

are

to them

foreseeable

Treasury from part of the respon¬
sibility to finance European re¬

+44

world-wide in scope, the
B.I.S. will have to be subordinated
for

account.

Since the Bretton Woods
tions

spring.

Therefore, all plans for re-ac.tivating the B.I.S. will have to
take,

—•

Monetary Fund has also

become

rather

to find

—

the

caution.

ternational
loans and

But there is
Ireland

operate

lending oper¬
ations in Europe; experience dur¬
ing the inter-war period quite
naturally suggests a good deal of

-J-

been

rightly

•

+
■v

funds

have

France

The B.I.S. may also furnish con¬
siderable assistance in connection

finance
in turn, would rent
needy European countries
future.
various
kinds
of
transportation
On the other hand, the B.I.S.
equipment and perhaps also agri¬
may perhaps offer an excellent
cultural
equipment.
The Bank
vehicle
for
making
available
through the trust would retain
American banking funds for the
title to such equipment until full
revival of Europe's international
payment has been received and,
trade. Up to now, American banks
in this manner, would have full

_j,

order

effectively. Serious students

tional

B. I. S.

Denmark

of cooperation in the first
place and it will not need addi¬

*|- '

funds

opinion

those

Inter-

Conference

of the situation feel that the activ¬
ities of the B.I.S. will always be

respective

for Economic V Fund
Monetary
Cooperation

or¬

ganized in the meantime and have
become fully operative.
The In¬

differences

European reconstruction

become

then contemplated have been

appropriate

furtner

comparison of their
membership rolls.

>.4

one's opinion

regarding the wisdom of

may warrant.

will

—

the

with the Marshall Plan. There are

for

pool

benefit of all of Europe.
There will be other possibilities

oppor¬

even

such

for using the B.I.S. in connection

meeting of the
European Members of -the International
Monetary Fund, the Bank
tor International
Settlements and the Paris Conference
for European Economic
Cooperation

B.I.S. and the Bretton

Whatever may

administer

ested

co¬

coming Governors'

expand the scope of its activities.

Woods Institutions

tion and integration of the several
international organizations inter¬

operative agreement between
the
Fund and the B.I.S. The
forth¬

in business or

not continue

held

inex¬

make

decisions

working out the terms

and there
is
every
expectation
that it would, there will be possi¬
bilities for increasing these de¬
posits as conditions at the time

tunity

similar to that
arrived at with the

will

Europe, should afford

credited to a International Bank.
4"In view of the
"Special Suspense Account" which
urgency of the
amounted to 4.5 mill. Swiss gold European economic situation
no
francs ($1.45 mill.) at March 31, more valuable time should be
lost
Expenditures have
been
stable over the years at

which

cusable delays.
The possible scope of coopera¬

vented

istration have been

1947.

cattle

going to feed lots will be less than
a
year earlier. The present rela¬
tively unfavorable crop and feed
prospects further confirms this
judgment. Based on present in¬
dications of feed crop prospects
and the carry-over of feed grains,
the supply
of feed concentrates
per animal unit will be much less
than that available at the begin¬
ning

the

marked

feeding

Past

October.

season

records

tendency

the

number

the part of
or

de¬

cattle

fed

cattle finishers to increase
crease

last

show

each year

to about the same ex¬
tent as changes occur in the sup¬
ply of feed grains available per
animal unit. It is yet too early to
appraise the prospective feeding
situation in its entirety, but the
information at hand indicates that

might anticipate a reduction
possibly 10% in the number of

one

cattle fed for the

1948 market. A

similar reduction in beef and veal

output next year appears also to
be a reasonable guess in view of
all

the

conditions indicated.

Records

other

what

occurred

following short corn
crops show a rather marked ten¬
dency for the effects of a feed
shortage
to
be
reflected most
acutely in the supplies of live¬
stock marketed during the sum¬
mer
following a crop failure or
shortage. Scarcity of feed tends to
cause
producers to shorten the
feeding period and to market their
stock
earlier
than
usual.
This
years

(Continued on page 28)

THE

(932)

COMMERCIAL

FINANCIAL

CHRONICLE

(Continued from page 14)
capital and labor. In settling
there

are

therefore,

best

example which

this

country

base decisions in individual
In

the

date

jJ
*

absence
to what

volved

the

ployer

man¬

this

"fair"

are

forces

government

cases.

profits,
"reasonable"

President

wise

decision
of

character

the

ment—the

new

all-

the

in¬

shall

how

industry

allocated.

the

civil

suits

addition
be

However, in my opin¬
ion we are still a long way from
having
reached
the
optimum
amount

and

district

believe

form

unions

means

that

lations..

directing their major ef¬
toward securing favorable

certifies who

sent the

workers

Mediation

shall

tion

which
and

render

repre¬

this

vital

government
service

func¬

can

which

per¬

it.can

improve industrial

re¬

Compulsory

arbitration

inevi¬

tably

means government control of
labor standards and the
injection

politics

When

into

and

wages

conditions

other

working

other government
both labor and manage¬

agencies,

must

action

disputes.

determined

are

labor courts
ment

labor

rely

political

upon

protect

their

interests.

Inevitably, compulsory arbitration
leads

labor

arbitration

versus

em¬

party

refused

by either
dispute
should
substantially to interrupt

and

threaten

the

points

emergency board to in¬
facts and report to

vestigate the

him within 30 days. The law does
not require compliance with the
recommendations
of
the
emer¬

gency board, but the publication
of the findings and the

pressure

public

not to accept its recommendations.

unions,

well

this

most

Constructive Services of
Government

country,

employers,

The

are

opposed to compulsory arbi¬
tration. In some other
democra¬
cies, such as in Australia and New

Zealand,

organized

labor

compulsory arbitration.
nificant
ment of

that

since

favors

It is

the

sig¬

establish¬

compulsory arbitration

these
countries, so-called "labor
governments" have beeh in
power
most of> the'time. 1 * +
\ ;
*

Regardless

what

the

i im¬

mediate situation
may be, we must
ever
keep in -■ mind that in a

democracy
tion

compulsory

cannot

disputes.

whose
cause

a
totalitarian
eliminate strikes,
these
governments

can

prevent

slow

accumulated

greater

loss

complete, but
stoppages. So long
women

clowns
may

production

brief,

work

free

engage

undertakings,

effects

than

and

arbitra¬
individual

Only

government
and
even
cannot

prevent

there

men

economic

will

al¬

fourth

and

absolute

dominance

one

group and abject servility of the
other group — a situation
which
makes for stagnation rather than
progress.

Disputes

need

not

lead

principle

which I want to discuss
with how it can be

(together

implemented)

has

with

constructive

tion.

can

positive

not

and

which

render

the

fact-finding and
am

finding in the
term, as when
is

the

services

government
field

the

educa¬

referring to fact¬
of the

narrow sense

settle

• a

by both

the

that,

forts

should not be made to
pre¬
them from
occurring. The
government as a third
non-parti¬
san agent is in
a position to
render
a
peculiar service in
vent

preventing

work

stoppages and in
shortening
those which have
taken place.
The
government can approach
its task from
several

First,

directions:

can

procedural
the parties

—

establish

certain

arrangements
which
to the
disputes must

arrangements which

en¬

courage
and
provide
time
for
mediation by outside
persons after
ployer - labor
disputes.
Under
failed; and, second, it can
proVide adequate
mediation services

once

entered

into,

conscientiously

adhered

Statistics, I have
in

strong
importance of
information which

governmental agencies such
Bureau of Labor

not

should

that

say

the

Statistics

and

vital

economic

supply,

the

supply.

can

This

management

bargaining process, knowledge

which

government

could

supply.
this, and still
a

time

when

facts

agency
assume all

can

say that there comes

unbiased, concrete,

information

wages,
and
other

productivity,
be

can

weighed

and

ap¬

praised by the parties
themselves,
and used to effect a
settlement.
Effective joint use of
economic
facts around the
bargaining table
is much better
collective bargain¬
ing than the presentation of
ular

reg¬

economic'

impartial

briefs

before

arbitrator,

which

in
turn is better than
resort to strike
or

lockout.

Need More

John Stuart Mill, the great 19th
century liberal, was a firm be¬

have

Economic Knowledge
may I take

knowledge. If

free society then
the
decisions

few

we are

must

wages,

prices, profits, etc., made
by the
millions

and

advocate

the all

educa¬

important requisite

democracy.

based

government

universal

workers,

nevertheless

the

for

trained

tween

the

political
growth

good

and

the

political

19th

great

movement

be¬

bad

Parallel

in the
-

informed

discriminate

affairs.

the

democracies

century, there

was

toward

through

mass

public

school

great

Organized labor

program.

ciated the

values

and

amounts

the

appre¬

political de¬

need

for

to industrial

throughout most
also

cannot

democracy,
industry. It

survive

unless

its

constituents are educated in the
field of economics and trained to

discriminate
and

the

tions.
It

between

bad

the

good

industrial

rela¬

gratifying sign of the
times that both
employers and
unions are coming to a
greater
appreciation of the value of edu¬
cation
in
industrial
relations.
Numerous regional and national
conferences

are

which

year

are

being held
attended

tions

directors.

short

can

be cited

tion

and

Associa¬

the

here

notable
now

the1 way

ferences

Bay confer¬

New

of
for

union
in

are
are

remarkable

one

York

Unions

examples.

doing

workers,

Silver

week

regional

union

numbers

and

night

well

are

phlets which deal with

labor-management

farmers,. Jiave

methods
.s*

wide

for
as

all

kinds

problems

of. solution.

circulation

These
,

Prices

cattle

follow¬

summers

Years

crops.

fed

that

examples of such

are

1925,. 1935,. and

livestock,

needs to be

one

bold

forecaster to predict higher
prices
next summer, but in view of the
rather, definite indications of
smaller meat supplies at that time
I would hesitate to

predict
lower.

prices would be
In

that

conferences—to1

subjects under
I

partic?

upon

discussion.

Commissioner,

the

of Labor

rea.u

Statistics will 2
tinue to render
assistance in ,»
of

these

constructive

proera

whenever

requested
management or labor.

situation

for

this

fall

consideration

year,

and

needs

given to probable supplies of

com¬

peting meat animals. From early
1942 to the end of
1946, sheepmen
reduced

their
breeding
flocks
nearly 17 million head, or 34%.
Sheep numbers now are down to
about

the low level reached in
1923 after the first world
war, and

the

lamb

this

crop

year

near

the smallest of record
going back
1867. Slaughter of

sheep and

lambs

this

has been about
smaller than a
year earlier.

25%

year

Supplies of lamb
are

and

and mutton next

•
expected " to
since the late

will

continue

the

twenties

small

for

least 3 to 5 years.

eith.

only about

iy2% larger than
the 1946 crop. Because of the short
corn
crop, hogs will be marketed
earlier and at
lighter weights than
the previous

year.

Pork

sup¬

plies this fall and winter,
^there¬
may
be less than a year

fore,

earlier.

Hog

Situation

early June, farmers reported
in the
Department's pig survey
that they intended to
keep 9%
more

for

fall

with

the

sows

compared

farrowing
number

far¬

rowed last year.

During the spring
months, when these intentions
were
being formulated, the rela¬
tionship of hog prices to corn
prices

was

relatively

prices.

This

have

may

dis¬

couraged farmers from carrying
out their plans to increase
the fall
crop. Supplies of hogs for mar¬
during the period April to Sep¬

tember next year,
therefore, may
be somewhat less than
was indi¬
cated by the
breeding intentions

made

survey

weights

hogs

June.

this

Market

year

been the heaviest of record.
cause
of
the
short
corn

weights next year
be

are

recent

years

have

the

and

aver¬

possibly

below the average of
prewar years.
The short crop and
high price of
corn

also

may

farmers

cause

Total meat
output this year is ex
pected; to. be 'f about 23 billio

pounds and

194& would
or

reasonable guess fo

decrease of

: Short

more.

* feed
supplies
would tend to reduce
the propor.
tion of
highly finished cattle mar.

keted, hence the better grades
beef will be

supply
this

in.relatively,

than

may

total
to

appear

smaller

meats.

While

gloomy

prospect for meat

consumers, meat
supplies will be large in
compari.
with

son

those

prewar

years.

Allowing

for somewhat smaller
exports than this year but in ex.
of prewar, a total
production

approaching

would provide
for

domestic

pounds

less

billion
per

use

than

pounds

capita supply
about

the

seven

large

very

supply indicated for this

year. In

1940 and 1941 the
per capita con*

sumption averaged about
less than this year.

15pounds|

Consumers tend to appraise thel
meat supply in terms of the
prices]
they have to pay, and since cur¬
rent

prices

far

are

above

levels, there probably is
ly general belief

and the

fair¬

consum¬

are

directly

to the level of

prewar|

now

among

"that meat supplies
Meat prices are
ers

consumer

short.

related
incomes,

high prices paid for meat

flect

with prewar, re¬

compared
the

great increase in con¬
sumer incomes
resulting from
the]
higher level of wages and salaries!

paid and the marked increase in

employment.

Disposable income
capita (that left for spending

per

after deduction of taxes) is more
than double what it was in 1937-

1941,
the

and" retail

year

slightly

prices for
averaged
double- the

meat

date

have

than

more /

average of/that

period.: There are

definite indications that the lower
income groups now receive a larg¬
er share of the total income than

they did in the

prewar

period, and

this makes it possible for them

compete

fully for available

food supplies.: This means a more
even

distribution of the total meat
means

also that mid¬

dle income groups

probably get a

supply.
smaller

proportion of the supply

than they did formerly.

With Bogardus, Frost

produce fewer spring pigs in 1948
they did this year, even

Co.

(Special to The Financial Chronicle)

LOS

ANGELES, CALIF.-*
Garraway is now witn
Bogardus, Frost & Banning, 6H>
South Spring Street, members ot
the New York and Los Angeles
David

Stock Exchanges.

With Thomson &

McKinnon

Be¬
crop,

expected to

considerably below

age

of all
types o
cattle, hogs, and
sheep

favorable,

but since
early June, corn prices
have risen
sharply in relation to

hog

supplies

meat from

now,

Supplies of hogs for slaughter
this fall and winter are
expected
to be
only slightly larger than last
year, as the 1947 spring pig crop
was

smaller

cess

appraVing the cattle supply

(Special to The Financial Chronicle)

GA, —Charles MCary B. Wilmer,
Thomson

ATLANTA,
Grier

and

have joined the staff of
&
McKinnon,
Healey

Arcade.

Mr.

with

was

Fenner

Wilmer

Merrill

Building

in the

pas

Lynch, Pierce,

& Beane.

•

than

issuing though the prospective decrease in
other meat supplies indicates
pam¬
that

stimulating

and

addition, both

employers and unions
attractive and

and

for

cities
as

con¬

stewards

officials,

officers.

job

schools

summer

rank and file members

union

the

sup¬

1937. In view of current
prices of

pig

annual

market.

prices

corn

occurrences

ket

Management

American
ences

The

ing

em¬

conferences

slaughter

summer

have occurred in

each

ployers and company labor rela¬

February

increase

the

smallest

and

frequently 3

Supply and High,

plies of both cattle and
hogs dur¬
ing the winter and to reduce them

year

well

govern-

mem& 1

are

attend these
ture and advise

(Continued from page 27)
tends

constituents

are

with

staff

Prices Ahead

suffrage can
survive, he maintained, unless its

courses

moments to set forth
my faith in

have

—

letter and in spirit.

other

At this point

economic

are

intelligent citizenzy. During the
past decade, we have established
collective
bargaining,
or
what

Labor

work
stoppages, however, and factual
maintaining
the
privilege
and prices,

to
engage
in strikes and
lockouts does not mean
that ef¬

contracts,

of discipline by
seeing that the

mocracy

belief
the

exercise

parties

Commissioner

the

conduct

of their
It need not
surprise

negotiations.
you

in
can

systems. It is ever to the credit
of the American labor movement
that it pioneered in this

help

facts

fact-finding panel

dispute.
I
refer
to
the
broader aspect of economic facts
in general, those items of
infor¬
mation which are needed
parties

economic

established

remain

Smaller Meat

relations.

education

labor

right

and the

both

final

and

necessary than in

industrial

employer-union contract; skill in
the art of negotiating
contracts;

tion

labor must
disputes, between em¬
rely wholly on
ployers and employes. A complete government information. Each of
the
absence of disputes for
parties,
and
both
any period
parties
of time would indicate a
condition jointly, bring vast knowledge to
ways

liever

industry and

field

Knowledge

government also controls the
ditions under which

operate.

education
the

conduct

order that the wisest decisions
be made and incorporated in

opinion makes it ex¬
tremely difficult for either party

unions

human

notifies

ployer political party
alignment,
for whichever
group controls the
con¬

area

inter-state

commerce, the Board
the
President who ap¬

them,

should

advances

Closely allied to the furnishing
decisions from government
tri¬ tive bargaining.
On* request of
of facts and interpretive analyses
bunals instead of trying to arrive either party to a
dispute involvr of economic data of air
kinds, is
at
mutually
satisfactory terms ing changes hr pay, rules,) or
aid to education. Indeed, educa¬
through direct negotiations. Every working conditions, or on its own
tion
may
be
considered
as
a
arbitration hearing tends to be¬ motion in cases of
emergency, it broader
phase
of
come
fact-finding.
a
battle of wits, in which intervenes and
attempts to bring Webster
gives as one definition of
bitterness is intensified as each about a settlement. If its mediat¬
education "the impartatiOn or ac¬
side inveighs against the other in ing efforts mail*
the Board tries
quisition of knowledge,- skill or
order to impress
public opinion as to get the parties to submit their
discipline of character."
well as the arbitrators.
Surely
controversy
to
arbitration.
If
no

these

usually- reflect this supply situa¬
tion, _?tnd ..some ..of ..the sharpest

their collec¬

industrial

While

kind

of fact-finding
bargaining negotia¬
tions.
It is simply not true that
"we have too many statistics." I

Board, also provided in the Act,
holds
elections ,and
by
other

forts

about

for collective

Under compulsory
arbitration,
litigation supplants collective bar¬
gaining,
with
employers ; and

The.' National

there is in. business

can and
should lend
a hr.i
hand, whenever
request.!
glad to say that

ing

useful.

enterprise.

courts.

unlimitedly

value

understanding

facts

law of diminishing re¬

turns here

Federal

undoubtedly

problems.

ment

undertakings of management
unions, and their control and

and

There is

application of agreements.
." Its
decisions
may
be enforced; by
.

economic

but

mutual

direction

and

interpretation

are

educational

be measured

knowledge

relations

decisions

their

Perhaps instead of "more
say "better facts."
would not argue that the un¬

The

out

better

and

union
?*..

of inestimable

are

promoting

system.

putes "growing out of grievances

the

deter¬

they

to me

sense

facts" I should

arrange¬

hours,

wages,

working conditions
mined.

It makes

will be for the nation's

basic

States,

that

particular indus¬

United

trial situation and render

come

respect

with

Adjustment
Board
provided in the Act handles dis¬

the

step into

can

distinction

the terms of

over

specially appointed agent of the

clear

terms

that in general the more
facts that the people have to work

and
,

such

statistical

other

and

to argue

Under

effect

cannot

knowledge.

em¬

...

programs

disputes; that is, those over I
the interpretation and application limited
of existing
agreements, and those would

is clothed with the habiliments of

assume

which

The

in the light of their best

groups

labor

parties in¬

dispute

role

disputes.

with

differences

compulsory

the

Act,

have

the

can

labor

made

accept
decisions based solely upon what
arbitrators deem to be expedient.
And no arbitrator, no matter if he

'-I

public

"just" wages, and
working conditions,

arbitration

members..

economic

businessmen

1926,
is the

1934,

laws upon which to

controversy,

wage

The Railroad Labor Act of
and as amended in'

supervisors

company

Government in Economic and Industrial Relations

Thursday, September
4, ^

increase in pork output would
be desirable.
an

Summarizing
situation

for

the

meat

supply
year,: the evi¬

among dence indicates that there will be

Two With Herrick,
Special to The

KANSAS

Financial

Waddell
Chronicle

CITY,; MO. —Asa A-

Hammons and Freeman B.
endall
with

have

become

connecte

Herrick, Waddell & Co., In®*

1012- Baltimore Avenue.

)er

4, l9«olume 166 : Number : 4626

(Continued

the Italian reparations
agreement

page

lace

Even

Jashes

in the Far East ranging all

there

now

six

are

civil war, as be-

\e way from

Leen

the so-called Chinese Com-

[unists and the Chiang Kai-shek
trees in China, to the East Indies

[

Pacific where

the Southwest

Dutch

again engaged in

are

Sbduing the Indonesians.
people, weighing
)Out 75 pounds wringing wet,
!t owning a country which is
little

Those

rich in many of the things

jry

needs, which include
spices,rubber and many
Irategic and critical minerals and
laterials needed badly by this
ountry, have a national pride
world

id want to run their own coun-

sheepwy:

just ratified by the United States
Senate
that
and

Netherlands

the Dutch

ation is known to be an empire

have

nation.and

.rinded

always

which

materials

raw

provided

from

other countries

Russia

are

processed
by Italian workers without
wages
of

kind

any

reparation

pay¬

ments, leaving someone (mean¬
ing Uncle Sam) to feed them
while they are
doing the work for
the Russians
during a period of
seven

years.

Fourth: The World Bank is
set
up and now

functioning to

sell

curities

the

nation

whose

investors

this

money

se¬

then

loaned to foreign nations
upon the
sole judgment of the
current bank
officials with every
prospect that

insurance
sands

The

COMMERCIAL

country
the

companies

small

and

thou¬

investors

this

will lose their money in

same

manner

the

govern¬

ment loans

are lost, since there is
intention among such nations
to repay the loans, •»

xploited" other nations just as
Ingland:; arid France have done
ver several generations,
and are

till

Department

mairitain

'to

trying

their

satellite nations.

tatus in their

The

FINANCIAL

CHRONICLE

Dangers of Our Foreign Policy
from
2)

he
.

THE

of the Indonesians

wages

mount to about two to five dol-

Fifth: The proposal of the State

divide

the

mar¬

kets of this country with the for¬
eign nations through the so-called
reciprocal trade program.
More

month in our money and
goods produced under the
jutch supervision are sold to us

harm may be done to the
economy
and
standard
of living
in this

high prices. It is a trade inter¬
est that the empire minded na-

tion

had

per

ions have in other

nostly

countries, and
the low cost

exploit

abor in these

areas

for their

own

integrity and that they selling

We have five other small wars,

armed

rebellions, going on in
Europe, six such disturbances in
he

East

near

Latin

wars

now

total

in progress,

would

lead

conflict,

Austria *in

another

War

Domestic and Foreign
After

two

[generation

world

where

get

still have

policy. We

Policy
in

wars

nite clear-cut domestic

our

defi¬

are

always have. Our State
even yet, apparently
nothing wrong with furnish¬

as we

Department,
sees

manufacture the
at

waging equipment, yet

war

the

moment

same

are

spending $400,000,000 in Greece to
train an army to stop Russia at
the

border.

This is the

tvhich
as

Administration

same

1933

recognized Russia

blood brother

without safe¬

guards of any kind whatsoever;
it is also the same Administration
that

continued

and scrap

shipments

iron to Japan

oil

to the
time of the Pearl Harbor
calamity
and then sent the
boys out in the
Pacific to catch that same scrap
iron

their

came back

bare

out of

hands

Japanese guns.

In the

meantime, the wealth of
States
is being
siphoned into the European and
Asiatic countries on the theory
that money, alone will
stop com
the

ing

taking

our money

and crawl¬

under the Russian trade tent.

Six Methods of Siphoning the
Wealth Out of This Country

Some of the well developed and
*nost popular methods of
siphon-

Jng the wealth out of this
try

into

the

hands

coun¬
European

and Asiatic countries
are:,

First: The

put
fey

direct

appropriation
of the United States Treasury
the Congress of the United

States, laughingly
Second:

called loans.

the' Export-Import

Earik spigot out of the

pf this
loans

country

■

Treasury

through which

are

continually being made
*o
foreign countries, without the
approval-of Congress. • •
; Third: Slave labor treaties like

To this

only
the

sub¬
world

sell anything and
unless we have

win.

necessary
money
and
credits to the United
States—they
took stock and shares in our rail¬
roads and industrial

enterprises

and

this

manner collected
in¬
their money and repaid
amortization charges.

terest

allowed to

are

indefinitely

can eas¬

form of

collective

could

time

could

throw

ever

Government
'

authoritative form

require generations

•'

overcome

vs.
'

off, if, in fact,

about to be treated to

are

repetition, of

the

loaning

and

spending technique * which pre¬
vailed during the decade just pre¬

ceding World War II.
It is expected that the two

ad¬

encourage

nations—purported

$5 to $8 billions per
for five years and running

year

the national debt up

around $300

manner

the national WPA

necessary
and

to rebuild the national

international integrity of the

nations of the world.

There is

was

plenty of private investment
capital in the United States to re¬
build

the

without

countries

the

world

dime of government ap¬

propriations, just the
same
as
English business men and private
investors furnished the safe, sub¬
stantial financing for our trans¬
continental

railroads

and

heavy

industry following the Civil War
because

they knew

that./jthis na¬

and

than

French

nations

for

half

a
century. The
United States cannot afford to
be¬

come

party to subduing weaker

Americans, and establish
foreign policy that makes sense

geared to our national
that wb can
support

economy

through good
help our less
fortunate neighbors to help them¬
selves,
but
not
dissipate
the
times

and

bad

and

wealth of this nation and wind
up
with the same low standard of

living

as now

prevails throughout

the world.

These European and Asiatic na¬
tions were old when we were

will

using
the target.

remembered

the versatile

was

that

Henry Wallace,

then Vice President of the United

States, who made such an inven¬
tory after the folks got a little

jittery,
reached
came

United

when

national

the

billion

with the
States

debt

dollars,

that the

answer

could

and

stand

that

announced

the

was
good for a 133 billion
dollar debt; and then we were in

and the wraps were off.

doctrine of the early
to foreign countries.

doctrine

■

30's applied

because

it[

election

had

form

same

people have

temerity to suggest that Eng¬

land and British citizens and other

European nations included in this
area
just described might well

tion.

still

not

answers

and

that

Disabled American
the

veterans

wars

come

sidered

in.

these

that

have

the

where

two thousand

indication

of them will

some

much
future.

very

the

change it

foreseeable

the
em¬

252,

Amends the Armed Forces Leave
of 1946: Amends
the Armed

Act

Forces Leave

Act

1946,

(1)

permit

applicants to elect pay¬
ment for terminal leave in cash
in
lieu of payment in

bonds,

provide
the

that

Act

(3)

bonds

shall

(2)

issued

•

under

redeemable at
after Sept. 1,
1947, and
for one year

any time

extend

(to
Sept. 1, 1948) the time allowed for
filing applications for terminal
leave

pay/

(P.L.

254,

approved

July 26, 1947.)

two

It is time

problems

anc

world

they
and

con¬

in¬

The following veterans' legisla¬
was passed
and has become
law through the
action of the

first session of the 80th

Congress:

National Service Life Insurance
Act Amendments:

Authorizes

original issuance of permanent in¬
surance and

extends time for rein¬

stating lapsed insurance.
signed Feb. 21, 1947.)

(P.L. 5,

-(P.L. 85, signed May 31, 1947.)
Vocational

Rehabilitation:

creases

from

million

dollars

thorized
loans

1 xk

million

the

.!
In¬

amount

au¬

revolving fund for

veterans

rehabilitation

for

vocational

(P.L.

courses.

115,

signed June 25, 1947.)
Service

Workers:

and

War

Columbia

Appropriation Act, 1948—Appro¬
priates $107,100 "to provide serv¬
ices

ers."

25,

veterans

(P.L.

and

237,

work¬

war

approved

July

1947.)

Terminates

limits

various

some

It
some

sense.

time
that
somebody or
group—and there is no bet-

the

rates

and

Civil

their

SpanishWar

dependents.

(P.L. 270, approved July 30, 1947.)

the proposed Veterans' Ad¬
ministration
facility at Clarks¬

burg, W. Va. (P.L. 288, approved
July 30, 1947.)
Recognition of Retiring Offi¬
cers:
Amends Section 200 of the
Act of June 29,
1936, so as to per¬
mit recognition of retired
officers
and enlisted men as
representa¬
tives of veterans
organizations in
the presentation of claims
to the
Veterans
Administration.
<P.L.
316, approved Aug. 1, 1947.)
I

favor universal service

legis¬

lation, and the plan by the Veter¬
ans seems the most
reasonable andi
effective

practical

suggestion yet

made.

hearings

not

on the legislation
completed before

been

end

Congress and did not
come before the
Senate. A care¬
ful study must be made of a com¬
bination of such

training, includ¬

ing
education,
national
guard,
military schools and regular army
to

determine

atom

bomb

the

and

type

most

needed
effective

study of the proposed legisla¬
will

ond

session

resumed
of the

the

80th

sec¬

Congress.

Make Our Own System

the

inventions

training

and which will

The

effect

other

Government Work.
The
greatest
recommendation
possible for a svstem of govern¬
ment is to make it work.

clear

from

our

own

scattered

money

taxpayers' pockets

random

the world is

It should

that

now

not

throughout

the answer.

to you, like Churchill
said to his people when some one
suggested that England relinquish
can

say

her domination

Asiatic
become
to

over

peoples,
the

some

that

kind's

of her

did

first

not

minister

liquidate the British Empire; I

to you with equal candor

say

that

did not

the

become

United

member

States

Senate

dissipate the wealth of the United

cluding
the
following
provided for veterans: (1)

States.

in¬
benefits

readjustment

and

Rights,

(2)

benefits

under

loans,

education

the

under

certain
Sec.

Bill

al¬
of

insurance
201

the

We must make our system of
free enterprise continue to work—

keep

allied nations,

strong

bility
tion

for

vocational
the

under

1943,

(5)

war-time

Act

rehabilita¬

of March

24,

period for certain

war

rates

disability or
death compensation, and (6) ef¬
fective period of insurance pro¬
visions

under

the

Soldiers'

Sailors' Civil Relief Act. (P.L.

and

239,

approved June 25, 1947.)
Benefits of the Missing Persons
Act:

Extends

the

benefits

the

our

keep

(4) period of eligi¬

armed

our

continue
ments

Social Security Act of 1946, (3)
reciprocal services to veterans of

methods

nation

the

Philippines. (P.L.
241, approved July 25, 1947.)
District

the

District

Columbia:
of

Columbia

Amends
Unem¬

forces

strong

laboratory

secrets

our

that

are

—

warfare-

ourselves

ever

—

experi¬

knows

how

establish

and

maintain the best intelligence sys¬
tem in the world and know what
other

nations

ready
with

at
all

taining

all

are

time

other

doing — stand
to cooperate

nations

main¬

in the
world and in raising the standard
of living of our
less fortunate
permanent

peace

neighbors, and above all things
begin to turn the spotlight on our¬
selves and determine the effect of
our

Missing Persons Act to members
of the organized military forces of
the Government of the Common¬

make

Way

Civil War

emergency and war measures,

wealth

and

can

Emergency and War Measures:

Increases
>

Veterans

District

Payable

and

payable

Veterans

housing construction under

the National Defense Housing Act.,

Pension

American

tion

Housing: Authorizes $35.5 mil¬
lion to complete veterans' tem¬

sisted that the national and inter¬

begin

Veterans:

the

tion

pension

had

Veterans' Legislation

national

policies

Rates

Spanish-American

The

the

Veterans

the

there

and

years

lowances

Some of these
the

living in the last

porary

integrity through

free

na¬

tion

war

born. Most of them have not
per¬
ceptibly changed their standard

ap¬

utilize the approximately 20 bil¬
integrity at this time. None of the
lions of
dollars of
investments
nations
receiving our loans or
they have in the United
donations intends to pay anything that
States in the process of rehabili¬
back; therefore, business invest¬
tating Europe.
ments are just not being made.
I am taking this
If the spirit of fairness, indus¬
opportunity to
give you what I consider some of
try and honesty could be reestab¬
the problems confronting this na¬
lished there is plenty of money
and

af¬

unemployment

democratic

investment

cannot

operated in the early 30's,

government.

the

practical

to reestablish the
empire system
';hat has prevailed with the
Dutch,

English

employer's
ployment experience. (P.L.
approved July 26, 1947.)

for

such

from

their national

operation of such capitaHt is

States

loan

definite purpose and for the same

United

some

continuity of

Congress does not know how to
reason the so-called Marshall plan
lend money, it only knows how to
is not a plan.
give it away. Private business not
only knows how to lend and in¬
A United States of Europe
vest money but it also knows how
Many informed people believe
to collect it and make investments
that nothing can be done for the
pay dividends.
29 European countries, containing
American private capital invest¬
250,000 square miles less than the
ments in Asia, Europe and South
area
of
the
United
States and
America, • backed
by American
three times as many people, until
brains, ingenuity and know-how
they band together in a United
could and would gradually raise
States of Europe for their mutual
the standard of living throughout
the world and provide unlimited protection and pool the lines of
royal and inherited kingdoms and
opportunities for our technically
trained
and
business people if dictatorships into one strong na¬
tion of 2.9
separate states, and
given the opportunity and incen¬
through this method reestablish
tive.

and

The

by
service

shall not be deemed to
break

Integrity

and insist that they

approached
basis.

Act

military

The Truman Doctrine

National and International

his country

that

ex¬

government, and
begin to examine the problems of
oe

Compensation

providing

Acquire Certain Land: Author¬
izes the Veterans' Administration
to acquire certain
land as a site

Foreign '; The Truman doctrine was never

Loans

our

ployment

visory committees headed by Mr. countries and
allowing other na¬
J. A. Krug, Secretary of the In¬
tions to make a profit from
their
terior, and Mr. Averill Harriman, low paid
labor, as the Dutch have
Secretary
of
Commerce, 1 ap¬ always done in the Dutch
East
pointed with the announced pur¬ Indies and the
South Pacific, the
pose of determining the amount
English in their empire
countries,
of money and goods that we can
and the French in New
Caledonia
safely loan and ship to foreign na¬ and other
possessions.
tions, will read the menu back¬
It-is time that we
established
wards
and
come
up
with the an American
policy by Americans
amount that they have determined
and for

it.

Private

discourage this
great fascination that
any foreign

in my humble opinion, to
Loaning and Spending Technique
'end money
throughout the world

government that we would not
ape apparently to be subjected to
knowingly vote for—some kind of a
repetition of the lend and spend

the

and

ford,

sources

ily spend ourselves into

United

hiunism. At the present time they
are

can

money,

If these methods

other

you

continue

production of high octane gasoline
for-war planes,, and heavy power
she may
atom bomb and

the

market

can

that

which

vote.

one

have

the

ing Russia with oil refining and
cracking equipment necessary for

equipment with

operated

nation seems to have for
ecutives in our

the

proximately 89 billions of dollars;
previously loaned that nation the
then, when we were close to that
money with which to pay, and
amount, it was the world econo¬
since we have only one vote out
mist, Leon Henderson, who after
of 55, it is difficult to see how
profound study of the national re¬

foreign

still playing both
sides of the foreign policy street

just

Since

stantial

Pearl Harbor in World War II.
1

World

supposed to be
granted the power to allocate the
production and markets of the
world.

and

the

now

Organization

tions, each with
organization is

done

was

World

organization

back

give

the 55 members of the United Na¬

of which might light the

that

world

and four

America, making

)f 21 small
anyone

fuse

and India

There

Trade

profit.

Sixth:

America

Americans

country by the State Department billions.
■'
Geneva during the next three
In effect, it amounts to a world
months than Congress could re¬ wide WPA using communism as
pair in several years.
the whipping boy
in the same
course

group than the 18 million vet¬
erans, of the two World Warssize this situation
up and begin

could profit from the
investment.
These nations did not loan or

,rs

(933)

actions

and

on
are

communism

America's future,
really looking for

and

reds, it seems
that the hunting is pretty good in

some

parts of this country and

could practice here, while getting

ready

take

Communists.

the

Russian
'

(934)

THE

COMMERCIAL

bears

little

France

the

rule

resemblance

exceedingly
George III.

personal

has

had

three

nomic

We may
well ask what has
brought about this great change
which gives acceptance of a doc-

pulsions

was

acts

in 1787, but its
constitution dates back

two

after

World

in the East

War

just

are

was

carved

of free
competitive enterprise< Someone has said that the

English
oniy

encj in

changes
impressive

;

constitutes

greatest

essential

an(j uniess

-y

the

wnTwJf ritftrmpcc 2
born, regardless of

aid

necessary

abroad that

was

economy is

work

limited.

the

world

Any

should

limitation

H(JW

wf are as a na~

tl0n depends

upon how

much

Produce as a nation." 3 Restriction
Republic"
says,
"The
political
labor and output can never
form which European statesmen by sheer force without regard to
moral principles is
of the 18th Century regarded as
reactionary in bring prosperity to a nation. Temthe

transitory

test

the

supreme

trial to

and

our

dividual

freedom

where the state

have

opinion

-verv

challengl
in

the

peared

this

ber of society it has implemented

its minor imperfections,
♦

The

17th

seriousness

and
you

That

the

government

managed
get more

your money

945.

question

first put

was

much

18th

were

which

have

,we

liberal

witnessed

thought and action. Both
home, liberal doc¬

That

have

been

under

attack.

have

lived

One of the

sions

minority,

free

have
in

for

they

"Liberte,

(

Can

misunder

the

ago in

statement

long

men

they continue to believe

in absurdities.

living

wage

the

worker

in production
if there is

well

Normal

which is the

more impor
the procreation pf

Both

our

wages

workers realize tti'fit
not

are

go forward

only
ample investment in
productive ~ equipment

are a

profits not
increased wage, if at

time

the

inflationary
pay

benefits to both

his

workers and the

inflationary.. The

re^

wage
cannot escape the
fact that
is also a consumer.
;

There is

the

has

been

same

century

broad

i ;

misconception

the
portion of our national
product which goes to
projfts. In
a nationwide
survey of ttie

opin

Understanding

nomics—Willard

Business

and

Eco-

Chevalier—"Commercial

anJ Eight Errors
jVn,*.ncjal Ch™n^u>" 7/24/47Vk<
4
Our Economic
in

ing—Sumner
"Times"

Think*

Slichter—-New

Magazine, 8/10/47.

United States.

business ventures.

have

diminishing

already

That
passed the point
returns is very

y '■
Clark, General Chairman

Fred

American Economic Foun¬

sniping and punitive

(

tax

economy.

■ -

.■; •.;

■ •

•..

■'

•

-V*:

Another potent

this

approximately
country for

com¬

pete with their government. There
too many
of the
are

The Jaws of
immutable.

eco¬

governing private business. Then,
too, private business tnust be .ef¬
ficient to survive, whereas the
taxpayer absorbs the losse§ when
government

owned business op¬
a.loss. One
only needs
to contrast the "
operation of the
railroads in World War J
by- the

erates

day, Dean Bidgood taught

his "Outlines of
Economics" he

said, "Man
nature
The
are

can

with

get but little from
his unaided hands.

instruments which aid him
called capital; in other
words,

capital is every product which
used

held

for

the

trowel

Capita!

are

Makes

purpose

Employment

amount

York

industries,

Penalties
Frank M.

Economic

Ignorance—

Surfaco—"Commercial and Fi¬
Chronicle," 7/17/47. **
Capitalism, the Creator—Carl Snyder.

nancial
6

ment

World

War

II,

get a

convincing conception pf the tre¬
mendous costs which accrue to so¬
ciety when the state undertakes

business ventures.

Notwith¬

uneconomic

aspects
'government in business, we do
not have to look farther than the
of

confines

current
dustry.
an;

Alabama

;

witness

attempts to

socialize

one

spot

in¬

state

our

effort is now being made to
facilities with government

build

funds

which will compete with
private" capital," although private
enterprise stands ready and will¬
ing to do the job at a more eco¬
nomical

„

of
capital required per worker
in the industries of
this nation. A
few years
ago it took an average
$6,300 of capital for each worker
in
manufacturing.
For
each
worker
in
chemical
5

government, with what the rail¬
did under private
manage¬

roads

project

capital.

Few, indeedr,realize the

standing the

respect the opinions of Dr.
Richard T. Ely, and I
remember
in

and

•

they do.
are

advantages in favor
latter, such as tax exemp¬
immunity from laws

tion

(4) The rate of growth of tota
wages and of total
'product has
been nearly the
same, so that over
long periods the .share of the

lieve

government in business. Govern¬
ment in business
becomes monop¬
olistic and few
citizens can

ditional capital.

nomics

impediment to
expansion of our production
the constant
encroachment

the

cost, than
can

the

proposed

hope to do.

-Britain's Crisis

For .any who
may have leanings
toward the socialistic
way of life*
I

suggest

study of

"belt-tightening"

the

program

recent
offered

by Prime Minister Attlee for Brit¬
ain

at a closed "crisis"
meeting of
thp: Members of Parliament late
in
July." The Socialist Govern¬
ment, having spent most of the
7 The

Life and

—M. B««r.

Writings «f Karl M#^

Bureaucracy Another Impediment

the

service

tinuation of that trend
:would im¬
serious problems for our

more, indicating that
an increase in
the product is de¬
pendent on the provision of ad¬

■

$("

family in

$1,$7,009 for each

pose

aggregate

earner

error,

debt

determined in thelong run
by
the capital investment
per worker
(3) The rate of growth of
cap¬
ital investment and of

mason's

left
over

- America's
stock
of
tools decreased
20% from the 1930
level. '.
It marks the
first pe¬
riod in our
nation's history that
our tools did
not increase." Con¬

fairly fixed

and

suit

900

capita debt of

legislation,

Unless, then, the: product can be
increased, the level of wages can

producing or acquiring wealth."
Thus, the carpenter's saw and the

Otherwise, the

administer
July 1, 1941
1947, we spent

already " owed,

per

years of

share of the value of the
product

public, they must be accompanied
by a greater production of goods
services.

and

dation, said recently^ "After eight

(1) Taken broadly, real wages
determined by ' the product

worker, and

ac¬

investment.

with

we
a

of the

are

expressed in

power. The worker

same

what
with

likely.

increase

years there has
been ample statistical evidence
to
conclude that:

per

encourage its

$370 billions. We
raised 46% of
this by taxation
and
borrowed
$200. billions, which

can

in¬

about

for investment is

investor.

that

destroy those

war

important to the
to

important

which

ant with

Productive Investment
A

not to

a
$258 billion
require heavy taxation
for years, but it
is important
that
the tax burden be
held to a point
where it will not
dry up the in¬
centive to take the
risks attend¬

was

will continue to commit
atrocities

product

Washing

family wjth
more economic goods and services,
If wage increases are to carry real

thought-provoking. They

contribution
1,„
J
make to «„unk!ii»0Rnrf +V.O
rehabilitating the
currently disorganized world. Ecoit

pay and
debt will

ignor¬

(2) The product per worker is

management

not the least. There

are

truth

some years

will not provide

Communism
Americanism only

margin

Economic

about

not.

spiral increases the prices of the
necessities of life so that his

and

enterprise, the contribution it has
made to mankind, the
contribution
it made to the
winning of two
world wars and the
!A

tJiXSXSc!Hte"ibiU,y 10 Capi

ing

indicate the great need of broad
education on the values of free

its

memory by
FraEaglite,
ternite" removed from
hundreds
of
buildings which they had
graced for
many decades.

are

much

at all

not

sizable

the

between

and labor

the

zeal and education."
am

strife.

dangerous. I believe

Karl had
capital instead
of

government from
through June 30,

believe

Voltaire who commented that

dollars arid
cents, but in purchas-

prepared to defend
the
accuracy of Dr. Link's sur¬
veys, but even making allowance

sough'

even

promises, propaganda, mission¬

ary

all over France.
Not satisfied with
a
repudiation of this liberal
motto
the forces of
reaction have

having

excelled

ance

impediments to

production

Few of

apparently remain a
with apparently one-

"Socialism

says

Egalite, Frater

to extinguish

believers

serious

standings

real

Corporation, who conducted these surveys,

Expressing France's libera
philosophy, they were inscribed
conspicuously on public buildings

trend

Dr. Henry C.
Link, Vice-President of
Psychological

World War I, was the
universa
employment of the three
great
words, "Liberte,

dustrial

credited

"If

Destroying Incentive

owners of
business get
in profits than the workers
receive in wages. With such
gross
misconceptions in the minds of so

many wage earners, there is little
wonder that We have so much in¬

lot

To win the

the

of the workers

said,

our

third of the population
uncertain
one
way or another.

vivid impres¬
from France in

nite."

figure

Opinion Research report indicated
64%

had the
win

cumulation and its

representative group of cor¬
porations was 7.6%.s
A
recent

hat

manufacturing
have

care

hat

lot

centives

ex¬

belief

capitalism

most

carried

showed

However, convinced

of the 40 bil¬
lion people who have
lived on thj:
earth since the
beginning of thi
era,

war,

the

high

good

that "less than
3%

lives." 2

the

take

exceed¬

the

having

living,

goods,
capital
or.
(
elements being es
sential, it should challenge the
product going to labor has re-1
best efforts of
industrial and laboi mained
nearly constant.'^ /,;■
j
leadership to effect harmony in
In the long run strikes or
their
lockrelationships. I am per
Puts have
little effect on reai
suaded that much of the
strife
wages. Likewise, neither the mil¬
between these two is due to
la6K
itant labor leader nor the
of
tightunderstanding of economise
fisted employer are able to ex^
verities on both sides.
siert nearly as much
influence on
Purchasing Power Essential^ wages as they would have us be¬

in private enter¬
guarantor of the greatest
for
the
greatest
number,

prise

; Christian

Aasun8 peace'

labor."

economic and social
which has followed the

toward

this

soon

uncertain.

over

systems
end

challenge should come
a
thought provoking
phenomenon. However, it is not
too
surprising when we realize
so

were

probably influenced by the great

abroad and at

trines

ownership.

debate

can

the human
race, the male or the
female, I will tell you which is the
more important in the
production
of
ecoomic

under government
ownership.Later
samplings
of
opinion,

tant elemen* in

socialistic. Of the colege students, 63% were
convinced
they would get as much or more

astounding de¬
velopments of this, the 20th Cen¬
tury, is the widespread reaction

impedi-

jtS WeI1"being and

tell

College students among the 5,000

government

Nineteen percent

among . which were the English,
American and French revolutions.
One of the most

the

by a priest whose name I haye
forgotten. Said he, "If you wlf

under

Century with a notable list
accomplishments included

remove

ton

time, 43% (4Kt°bei!i
thought

At that

great beginning of liberal thought
policy. It bore fruit in the

electrify the
world wlth our contribution to its

made

never

men can

must

writing

work

capital, it
would have been
much better."? *
Since a constant
flow of
capital
into the tools of
production is
most essential to
a
high level of
production and a
high standard of

Throughout the

industries,

or
less for
than you do now?"

they would get

ingly
for

American economy"4 and its ca"Tpacity to produce. If we have the

enterprise,

profits
In 1945,
profitable year.,

10%,

new

Labor-Management Conflict

question:

would

and

°* appreciation of the "enor-

with

made

1945.

reality,

and

period,

ceeded

"if every

wide

1944

mous dynamic possibilities of the

to liberalism is reflected

magnify

Century witnessed

'ack

wisdom to

democracy."

following item which apin the
July 24 issue of

owned

have

"Free Enterprise: Five thousand
Americans—a cross section of the
national population—were asked

and encouraged free enterprise. It
has stood the test of time and we
would do well to stress its
great

means, but

fral prosperity. '3 There is

Trends":

living enjoyed by

than

such selfish

one attempted to get rich by producing less, the result would be
Seneral poverty rather than gen-

not

percentage of invest¬

profit of less than 4%

investment

small, for in
country about 30% of
all new
businesses fail to last
over a
year
and by the end
pf a
five-year pe¬
riod, 70% will have
folded up.
Karl Marx's
mother is

PrSfits Distorted

percentage of net worth in

ments to the
expansion of private
The

is the servant of

porarily, a small minority can
Pr°fit aJ J*1® expense of society by

which

Challenge to Liberalism

any
people.
Emphasizing
the
value of the individual as a mem¬

rather

of the great
people, it is distinctly

to know

come

society

growth unequaled by any other
nation and have created the high¬

strength

destruc-

Instead

violently against that interest,
destroy the very founda-

public

the people and not their master
Under its system of checks and
balances
we
have
enjoyed
a

est standard of

priceless heritage. It is a great
document, designed to protect in¬

well

tions upon which free institutions
rest and would
substitute some of
the many forms of
despotism for
bli.au
that
JLCC
free
tVf
government
vuioujjiJi
through

Heritage

Constitution

excellence.

It would

which

European governments have been
unequal—that of civil war."
Priceless

all

of the

mass

circumstances, to be
the most lasting. It has endured
even

being in the interest

governed'—has proved, in the vi¬
tal

extreme,

tive

that based 'on the consent of the

imposed

sales

yepr

assistance

g°°dS a"d S6rviCeS iS
,

made

their
a

strong

are required to presystems still sympa-

those

serve

and

as a

4,1947

this

representative group of manufacuring and mercantile concerns

world

our

and the
opportunity to save
the courage to
and
take the
risks in¬
volved which are

thought

ment and net
worth. In

shall not be in position to give

ciples and moral ideals, and those
alone, by which an individual's

has suffered little change. Burton
Hendrick in his "Bulwark of the

the most volatile and

and half

stability and
"Charity begins at home,"

peace

someone

Amount

handicap

-vssssTSt.«.

charter

our

the

put

interviewed

About half of
f^ose expressing
an
opinion
were
thinking
of
profits as a percentage of sales

sja

BXr1aidD"ItNif morarprin-

counter revolutions and discarded

Only

Socialism

transition which must
private property system

total

peacetime?"

profits exceeded ,25%.5

state.
The
conflict
between the philosophies of Rusand the United States
today
or

"J™ ?n ^r^)1^ary cIasai"

which he

since 1787, his¬
tory has been a record of chang¬
ing governments, revolutions,
constitutions.

experiment in
a
a

those

34% and 50%, and a total of
40%
of
those
interviewed

tern

C°.ntr01

The
as

com-

are

^r°iUtf

In the 160 years

ideologies, the Russian

opinion, Of those express¬
ing
an
opinion,
11%
thought
profits
exceeded
50%; another
4% thought -they were
between

mUnistic concept of a way of life
an(j the American democratic sys-

makes

was

$17
000; in printing,
$5,800; in mining
$8,650; in railroads and
steel milk
$25,000. Thus, before

rough guess, what
say the average manu¬

wo-thirds

Today we are eye witnesses to a
great drama, the struggle between

only to 1874. The Holy Roman
Empire, extant when our Consti¬
tution was being pieced together,
gave
way
to
the Austro-Huni^~Ca+ied common man Iby making
garian Empire of the Hapsburgs him the pawn of the state, or the
to be followed later by the small
nations into which it

facturer

here

as a

would you

dis-

despotism, to lasting world peace and
prosacclaimed loudly to be
perity. If we fail to exert proper
in public interest.
Always, these leadership in this critical hour
in
restrictions of freedom are said to
WOrld history, the drama
may bebe beneficial to the common
man, COme a
tragedy,
but in truth they have
exactly the
A strong
vigorous America is
opposite effect. They exploit the
which

republic

present

and

must

had

regimes,
two
empires, substitutes permanent class groups
for a
three
philosophy truly reflecting
republics, a
directory, a
the
ideals
of
real
liberalism?
consulate, and numerous constitu¬
tions. Italy in 1787 was a group of There is always danger in over
kingdoms, duchies, Papal states simplification, but I am inclined
to believe
the answer is to be
and
republics,
most
of" which
found in the disregard of moral
were under foreign control. Ger¬
laws and principles. When force
many was an aggregation of king¬
doms, principalities, and duke^ and coercion replace religion and
doms. In the last 60 years it has morals, the result is chaos, behind
been an empire, a republic and which the forces of reaction opa
fascist
erate, invoking restrictions, comstate.
Russia
was
a

"Just

was,

Ideological Conflict

archial

medieval autocracy and is now a
Communistic society. Switzerland

ignorance

Thursday, September

white collar and,
produc¬
tion workers, one of the
questions

pelled

trine of social organization which

mon-

CHRONICLE

Heritage

Moral Laws Ignored

FINANCIAL

ions

Freedom Is Our
(Continued from page 6)

O
>

;

THE

Number 4626

166

Volume

United

COMMERCIAL

FINANCIAL CHRONICLE

States

they predicted we high record for employment in the
which \ve loaned
would have from eight to ten mil¬ United States."
Britain, with production still low,
lion unemployed in the spring of
The answer to world economic
tells the English worker he will
1946.
Socialists and Communists ills is
not
have to work longer hours, that
Socialism, nor is it
throughout the world were in Communism. Neither have been
many workers will have to change

$3,750,000,000

non-essential industries to
essential ones, and that a large
pprt of production hitherto chan¬
neled into the domestic market
will hereafter be sold to other
countries.
That's not
a
very
pretty prospect several years after

from

agreement that American democ¬
stand

the

strain.

Russian

Com¬

munists set about creating all the
confusion possible in world trade
and British Socialists

end of the war.
The
ability of the

stated

by New York "Times"

handicaps of
taxation, gov¬

in¬

British

not proving to be the
the workers expected it

dustry

Utopia

ex-director of one of
nationalized mines, on
meeting one of his former em¬
An

be.

the

sia.

The official admission of the

British crisis last week
simultaneous

with

appeals

now

ployees, asked him how he likes
the new regime.
"Not so good,"

replied .the miner. "L thought I
going to be where you. were,
but I've only got a new boss."
was

almost

was

for

countries

nouncement

with

the

new

and
of

system

an¬

1947.

sacred

which

and

not

the

forget

the

seedling in
We
obligations

our

charter,

shall

nor

If acceptable

Russian Worker Unhappy

Russian worker
making out these days in the
U, S. S. R. in the land of Commu¬
nism? In an enlightening survey
recently published, Alan L. Of¬
ten said,
"The Russian worker,
like the Red Queen in Alice in
Wonderland,
is haying r to run
faster than ever, these days, „to

determined

record

of the

armed

our

been

not

use

upon

us.

may

tensions

stay in the same place."
"His wages are an average

gentle¬

and

men:

distinguished privilege to

final

session

address

the

historic

conference.

You

this

of
are

as¬

—

S. S. R. is having diffi¬

The U.

culties in attaining the

duction goals set for

high pro¬

its last five-

year plan. Drastic steps have been
taken to try to boost production,

which include:

drive

wages

pay

piece rate basis wherever possible.
3

"Reinstitution of 'collective bar¬

gaining' agreements by which the
workers agree to produce just as
much as possible and management
promises to introduce the latest
speed-up methods."9
:
Reestablishment of extra bene¬

efficient, high

fits for workers in

have

form

worker

Russian

the
time

hard

rubles

his

making

has

buy

minimum of food and clothing

He is none too happy.

his family.
■

Russia in
lines is still far behind its

Production
many

for

today in

.pre-War level.

possible ag¬
the American re¬
publics are determined to support
one
another against attacks. Our
nations have provided an example

Benefits of Free Enterprise

country does the indus¬

trial worker enjoy as many of the
comforts of life as in America

free

democratic

the

under

system

of good

he was far out in front of
any of his counterparts in other
•nations.
In 1940 he could get a
war,

(moderate

automobile

priced

•exchange for 853 hours of labor.
In England, it took 3,522 hours for
similar
car;
in Germany, 5,054

hours,

7,295

France,

and

hours.19- That shows what Ameri¬

enterprise

can

Aided

can

greater number of
production than for¬
eign workers, an American coal
by

can

justly

achievements
I

and

noble

the

commend

conference

this

cordial

President

desire

visit

this

land has allowed me to

beautiful
fulfill

spirit

efforts.

invitation

gracious
Dutra

the

proud

which has inspired your

I have long

cher¬

ished. I consider it most fortunate
that

with

also

enabled

the

foreign

meet

ministers

and

his

heart, the desire for per¬

manent

•We

world

peace.

determined that, in the

are

shall

of, our friends, we
achieve that peace.

company

We
the

determined

are

belief

our

because

in the
basic hu¬

people

principle that there are
man rights which all men every¬
where should enjoy. Men can en¬

joy these rights—the right to life
itself, and the right to share fully
in

bounties of

the

modern

civil¬

has

war

been

ended

forever.

Rights Essential to

Human

World Peace

miner's

British

four times

much steel

ish steel worker.
ers
ers

produces
as a

Brit¬

Our auto work¬

outproduce foreign auto work¬
and our textile workers beat

British
a

one.

worker

textile

two to

one

workers

by about

ratio.

attainment

The

world-wide

respect for essential human rights
is synonymous with the attain¬
ment of world peace.

earth

the

The peoples

want

peacefu

world, a prosperous world and a
free world, and when the basic

rights of men everywhere are ob¬
and respected, there will

served

be such a

Left-Wing Theorists
At the conclusion of the war the

in most of the
dominated largely by

economic thinking

world

was

left-wing

theorists.

Street

Here

in the

Journal"—July 30,1947.

9 Ibid.
10

Factory
page 66.

Management—July

1947

the

hearts of

people everywhere there
is a deep longing for stability and
for
settled conditions
in which
common

men

8 "Wall

world.

know that in

and

can

selves

know

attain

personal security

decent livelihood for them¬

and

that

their

there*

children.
are

aspirations

military

There

certain

are

our

vital in

our

search for permanent

peace.

l./•'*■..

•

policy which

vide economic

prepared

our

effectively

But

this

our resources

We must

apply
they can serve most
to bring production,

and

world.

best to pro¬

help to those who
help themselves

not unlimited.

the

aver¬

part to live

our

gations

others

the

charter

take

determination

to the obli¬

United

Nations

invitation

liberties

the

foundations of international peace.
Our military strength will be re¬
tained

evidence of the serious¬

with

ness

which

view

our

which

our

confidence

This

back

undertook

individual basis in the

of Greece and Turkey,

the

course

country is endeavoring to follow.
important
our

that

success

have

been

are

and

young

nations. At times we
have been impetuous in our rela¬
tions with
been

another. There has

one

natural

to exhibit the

tendency

same

differences and

ences

for

exuberance in
our

criticisms

friendships. Wide differ¬

our

background and tradition

have had to be overcome.
But I believe that we may

view

with sober satisfaction the general

history of

our

hemisphere. There

steady progress in the
development of mutual respect
and of understanding among us.
As
the
United
States
acquires

has

been

greater

I need not tell you how

overlook

have

vigorous

with

All

future.

lack

that

past and will
continue to be encountered in the

our

it is to

and each other.

where

are

•

We intend to do

are

Our

this

the

encountered

read

important

elements in

are

obligations.

victory.

ence
our

the

maturity,

becomes

its experi¬

deeper and richer,

people gain in appreciation of
distinguished cultural tradi¬
which

tions

flourish

among

our

understanding, support and neighbors in the Western World.
The problem is in the I hope that as your acquaintance
deepest sense a common one for with us broadens, you will appre¬
this hemisphere. There is no im¬ ciate our fundamental good will
portant aspect of it which does and will understand that we are

your

counsel.

not

affect all
it

which
I

us.

solution

can

fully successful in
do not all cooperate.

economic power

unique in human

history.

have

already mentioned
collective responsibility for

trying to bear with dignity and
the responsibility of an

decency

our
eco¬

■•.t

There

are

concrete prob¬

many

where
lems ahead of us on. the path of
nomic assistance. By the grace of
specific
inter-American
relations.
They
God and by our united armed ef¬
problems of limited scope and of
will not be solved with generali¬
forts
our
countries
have
been
peculiar urgency. But it was evi¬
ties. or with sentimentality. They
saved from the destruction of war,
dent, at the time that decision was
will call for the utmost we can
Our economies are intact, our pro¬
made early this year, that this
give in practical ingenuity, in
ductive powers undiminished, our
precedent could not be applied
patience and good will. But their
generally to the problems of other resources not even fullv explored. solution will be easier if we are
In consequence, our collective im¬
European countries. The demands
able to set our sights above the
elsewhere were of far greater di¬ portance in the affairs of a dis¬ troubles of the moment and to

case
we

were

confronted

mensions.

was

all.

for

quest

Thus, in a sense, I am
visiting not only Brazil, but I am

miner turns out four tons of coal
a

the

would not be able

visiting all of your countries, since
each of you carries his country

for

other leaders of the American re

American^ steel

freedom

the tools of

plied

world, and in our association to¬
gether we have strengthened the
fabric of the United Nations. You

the quest

pursue

less persistence and
less determination than we ap¬

them

ization—only when the threat of

do.

shall

with

neighborliness and inter¬
national amity to the rest of the

Even before the

enterprise.

that

gressor

publics.

•;■':■

•

made

Chapultepec. You have

made it clear to any

The

Even with the incentive extras,

commitments

the

the Act of

production plants.,!

accomplished
permanent

successfully

the task of putting into

gression.
We

than they were a phere which have been banded
But in the same period together for over half a century
prices of rationed foodstuffs — in the inter-American system. You
where most of his money goes

humanity.

know
and the world knowsthat these aspirations have never
been promoted by policies of
ag¬

peace

the

year ago.

have risen about 166%."8

finer life which

to all

common

representa¬

here

that

misunderstand¬

desire

difficulties

the

con¬

determined

are

have

sion to violence must not be mis¬

better and

are

tives of the nations of this hemis¬

higher

25%

for

—

It is

sembled

continental peace

ladies

ing in these matters.

(Continued from first page)
security,

But

there shall be

life

Overcome

interna¬

the further development

our

tinue to go far out of our way to
avoid anything that would
in¬
the

then

look with high

can

Inter-American Differences Must

shall

contribution,

community
hemisphere.

that

resolved

it that

hopes

made

has

conference

security

political

signal

armed

world

work

at the building of that great

differences

The

continue

can

believe that we

believe

conflict,

depend

heritage.

has

ours

have

strong.
The

threat.

international

present
will

remain

past speaks for

nation

great

force.

way

reluctant than

Mean to Achieve Peace: Truman
and

crease

maintenance of

and

this

This is in

solutions of these
be found,

economic problems can

which

are

and

with mutual confidence and cour¬

policy

our

the

nations

American

edifice

carrying out

eco¬

within

these problems will be ap¬
proached by us with the utmost
good faith and - with increased
vigor in the coming period.

tional life.
And how is the

that

to the needs of increased

our

are

You

that

mighty oak.

recover

war.

assurance

solemn

in Washington are not oblivi¬

age

kept

embodied in

have

Determined to Remain Strong

changing condi¬
tions and changing
requirements
without sacrificing the basic free¬
are

cherish

hope

permit others to forget theirs.

meet

doms which

must

under

operating in public
must keep the
flexibility which
has always enabled the American

all-time

"Times"—Aug. 10,

have

We must be careful not

prejudge it by this unfair test.

shall

system
interest. We

Constitution
York

11 New

which

infancy in almost continuous

the

the American competitive

American aid from Russian satel¬
lite

principles

system
which
has

and

countries

family

ernment competition and inter¬
ference by misguided bureaucrats,
the American competitive

Socialism, not to speak of the per¬
manent depression of Soviet Rus¬

European

from the destruction of

collaboration

and not to make
It has been embroiled

peace

the peace.

the

high

the

ous

conflict.

abnormally

United

that

nomic

the

in its

con¬

the

tain

perfections

and

recognize

signed to bear. Its role is to main¬

socialistic Correspondent Russell Porter, u of free enterprise,
planners is exposed when you on Aug. 10: "Economic crisis has given the American people the
realize that the loan, which was to come to the world but it has not highest
productivity
and
the
On the contrary, it highest standard of living of any
be used over a five-year period started here.
to stabilize British economy, has is the stability of the American people, is the hope of this trou¬
been almost exhausted in about free enterprise that is now threat¬ bled world.
a
We must hold fast to moral laws
year, and its terms have been ened by the instability of British
drastically modified.
Nationalization of

United Nations has been subjected
to a strain which it was never de¬

vitality and pro¬
ductive ability of our system of
free enterprise.
With all its im¬

trol at home.

the

gained

fidelity

Nations.

able to match the

and free enterprise could not

racy

peace,

(935)

with

clear

that

to meet them

equally clear that the
peoples of Europe would have to
get together and work out a solu¬
tion of their common economic
It

was

problems. In this way they would
be able to make the most of their
own
resources
and of such help

tressed

has

world

become

im¬

mense.

The

which
Western

Hemisphere can¬

not alone assure world peace,

without the
no

bear in mind the

peace

but

Western Hemisphere

is possible.

The Western

our common

New

prosperity and

destiny must rest.

of
the
World. That it is the New

This
ours

great truths upon

our common

Western

Hemisphere

is usually referred to as

World is clearer today than ever
prosperity, but without the before. The Old World is ex¬
Western
Hemisphere no world hausted, its civilization imperilled.
as they might receive from others.
Its people are suffering. They are
prosperity is possible.
confused and filled with fears for
European Recovery
Inter-American Economic
\
the future. Their hope must lie in
The representatives of 16 na¬
Cooperation
this New World of ours.
tions are now meeting in Paris in
In so far as the economic prob¬
an effort to get to the root of Eu¬
Hungry Nations Threat to Peace

Hemisphere cannot alone provide
world

lems

common

the

nations

economic diffi- North
The sick and the hungry cannot
and
South America are
of
build a peaceful world. They must
concerned, we have long been
European recovery based on help¬
have the support of the strong and
aware
that much remains to be
ing 'themselves and each other.
the free. We cannot depend upon
done. In reaching a solution there
They will then make known their
those who are weaker than we to
are many subjects which will have
needs in carrying this program to
achieve a peace for us to enjoy.
to be discussed among us. We have
completion. Unquestionably it is
The benefits of peace, like the
been obliged, in considering these
in the interest of our country and
crops in the field, come to those
of the
Western Hemisphere in questions, to differentiate between
who have sown the seeds of peace.
general that we should receive the urgent need for rehabilitation
It is for us, the young and the
this appeal with sympathy
and of war-shattered areas and the
good will, prepared to do every¬ problems
of development else¬ strong, to erect the bulwarks
The problems of coun¬ which will protect mankind from
thing we can; within safe limits, where.
that will be helpful and effective.
tries in this hemisphere are dif¬ the horrors of war—forever.
Our own troubles—and we have
ferent in nature and cannot be
The United States seeks world
many—are small in contrast with
relieved
by the same means and peace—the peace of free men.: I
the struggle for life itself that en¬
stand with us.
grosses the peoples of Europe. The the same approaches which are know that you
nations of free Europe will soon in
contemplation for Europe. Here United, we can constitute the
make known their needs.
I hope
the need is for long-term eco¬ greatest single force in the world
that the nations of free America
This is a for the good of humanity.
will be prepared, each according nomic collaboration.
We
approach our task with
to its ability and in its own man¬
type of collaboration in which a
ner, to contribute to lasting peace
resolution and courage, firm in
much greater role falls to private

rope's continued

cutlies and to chart a program

for the

benefit of mankind.

Another
our

important element

policy vital to our

search for

citizens
case

and

groups

a program

than

the

designed to aid

the faith of our

Lord, whose will

(Continued on page 32)

(936)

THE

just

Markets

Whyte

4
h
'(•

.I1*

did.

the

their

familiar

and

would

At this
of my readers can

have

"When

did

averages

185

you

anything to say?"

before

was

during this period the

ii.

side.

favor

Earnings

looking

maintained,

do, that

old

take

mar¬

A headline

the

place of

the verge of
it can't take the

was on

are

fashioned.

supposedly

It's

theoreti¬

cally all cash now. And speak¬
ing of margin calls it seems to
that with credit bars down

the

same

may

conclusions, let
that I have
tion and

has

no one

H
To get

In a message to the
American
Legion Convention in New York
City on Aug. 27, President Harry

S. Truman repeated his
advocacy
universal compulsory

military

training,
ing

only

sufficient

meet

"the

let

seemed to be
in

the

was

and

up,

there

improvement

prognosis,

fact that

The latter part of last

week didn't

seem

official

duties

pressure

prevents

was

Securities

expressed

not

111

h
,

Pacific Coast Exchanges

Members
New York Stock
Exchange
New York Curb
Exchange
San Francisco Stock

(Associate)

Exchange
Chicago Board of Trade

14 Wall Street

New York 5, N.
Y.

GOrtlandt 7-4150

Teletype NY 1-928

Private Wires to
San Francisco

Monterey

—

Principal Offices

—

Santa Barbara

Oakland
Fresno

—

Sacramento

stock

are

all
ttie

in the steel trade
who believe that
and other
auto maker
large steel users have placed their
so high
operating schedules nn
a plane that periodic
shutdowns are bound
to occur
known that
It
many steel fabricators and
processors are
much higher rate than a
operating at a
year ago and are still
steel.
clamoring for more
In the past few
months pig iron output has
been somewhat
actual requirements.
below
This has been
one of the
reasons
why steel
companies have been unable to
some

any

of the
They are presented as
those of the author onlyJ

—Walter

men.

and

where

chaos

remains

war

possibility the cost of
ty

will

time

remain

high
We

come.

our

are

for

some

to conquest;

open

In the two years since V-J
Day,
he veterans of World War II
have
made
long
and

rapid
strides
readjustment.
This
en¬
couraging progress of the veteran
today is marred, however, by two
major obstacles to full readjust¬

felicitations

Since

your

last

Francisco
to

greetings.
convention

one

year

ago,

sig¬

steps have been

augment the security of

ment.

These

high prices and
housing. All of us
are

nsufficient

know that these problems are not
imited to any one
group of citi¬

veteran,

armed

almost

total
a

morale

forces,

then

the

overcome

strug¬
impact of

/demobilization,

are

volunteer basis, high in

and with

increasing mili¬

tary efficiency. At home and over¬
seas they are
performing national
missions in
to

a way that does
credit
nation and its
people.

our

gress

and

which

which
the

Con¬

members

your

supported, makes per¬
manent the coordination
and serv¬
ice

teamwork
war

developed

during

that might well have been

peacetime

departments.
vantages in

ibility, the

under

separate
obvious
ad¬

With

command

measure

and

gives

flex¬
every

promise of eventual
the fields of

savings in
administration and

supply.

recently

housing

prices he can afford. The coun¬
try will await an expression of

judgment on this
problem
of
insufficient

housing.
Upon

the

veterans

falls

the

heavy responsibility of maintain¬
ing the fruits of victory in the
ahead. This is the veterans'
Its future is in their

years

country.
hands.
It

should

apparent

—trained,

however, is the
security structure
disciplined manpower

each

the

readjustment

men

have

of our
young
to normal
peacetime life, we
a

broad

and

sponsibility
shall

not

compelling

to do far more.
have fulfilled our

numbers

fill

the

civilian components
provide a broad base for
civil defense.
Against the possi
bility of total war, we must have
the
certainty of total defense, us

sponsibility to veterans

until

re¬
we

have guaranteed them
the oppor¬
tunity to find and hold the

homes,

-and security
their stake in this
which

jobs,

which

are

democracy for

they have fought.

can

will

assure

initial

that sufficient forces
available in the critica
phase of another

have

and

multiplied; its

speed

war

weapons have

somewhat I
I

significant change in the

This

was

ago.

Monday

week

steel

one

year ago. ' This represents

decrease of 1.0% from the
preceding week.

)

The week's
operating rate is equivalent to
1,&16,900 tons of
steel ingots and
castings compared to 1,633,700 tons
one
week
ago, 1,660,700 tons one month
ago, and

!
r

1,489,200 tons one year ago. j
ELECTRIC OUTPUT
12.2% AHEAD OF A YEAR AGO
The amount of electric
energy distributed by the electric
light
and power
industry for the week ended Aug.
30, 1947 was 4,939,801,*
000 kwh.,
according to the Edison Electric Institute.
This compares
with 4,952,876,000 kwh. in
the
preceding week and was 12.2% in ex¬
cess of the
4,404,192,000 kwh. produced in the
corresponding period

of last year,

RAILROAD FREIGHT LOADINGS
LATEST WEEK

Loadings of

1.8%

OVER YEAR AGO IN

revenue

freight for the week ended Aug.
23, 1947,
totaled 900,895 cars, the
Association of American Railroads
announced.
was an increase
of 5,410 cars, or
0.6% below the
preceding week.
This represented an increase
of 15,940
cars, or 1.8% above the cor¬
responding week in 1946, and an increase
of 47,469 cars, or 5.6%
above the same" week in
1945.
^
AUTOMOTIVE OUTPUT IMPROVES
SLIGHTLY OVER
!
WEEK AGO
This

•

The

automotive industry last week still
found itself struggling
its contemplated
production goal.
The shutdown the past
week of two
important producers fojr
inventory and steel stock¬
piling barred the way to
any substantial upward revision in car
to

attain

and truck

other

and

production, notwithstanding gains
independent producers.

made by Ford, Chrysler

Output in the United States and
Canada during the past week j
totaled 86,958 units,
compared with a revised
figure of 84,726
units for the previous week
and 74,960 units in the
comparable t
period of last year,
according to Ward's Automotive Reports.
Last week's output
comprised 81,521 vehicles made in this :
country and 5,437 in Canada. The U.
S. total included 59,942 cars
{
and 21,579
trucks, while the Dominion figure showed
3,502 cars ;
and 1,935 trucks.
week
week

and

was.

of the previous
moderately higher than that of the
corresponding
Retailers generally were anxious
to enlarge their

year ago.

inventories of Fall goods but
continued to purchase discriminate^.
Some improvement in
deliveries was
evident, but a few types of
merchandise
were

difficult to obtain.

BUSINESS FAILURES UP A
LITTLE
After

failures

the

roses

lightly

week's

Bradstreet, Inc.

and industrial
Aug. 28, reports Dun &
as compared with 50
corresponding week a year ago.
While fail¬

A total of 64
last week and 28 in the
ures

were

decline,

commercial

in the week ending
concerns

failed

higher than in the comparable weeks
of any of the past
were only one-third
as
many concerns failing as in

four years, there
the same week of

prewar 1939.
'
The small increase this
week occurred
entirely among small fail¬
involving liabilities of less than $5,000.
Fourteen of these small

businesses failed,
doubling the

N. Stein Joins Staff
Of Rosenthal & Co.
Rosenthal
&
Co., 60 Beaver
Street, New York City,
members
of the New York
Stock

and

Exchange
Commodity Exchange, Inc.,

and associate
members of the New

York
that
come

weight

year

seven reported a week
ago and more
tripling the four of last year. Failures with
losses above $5,006
continued to account for a
major portion of the week's total failures.
At 50, concerns
failing in this size group were down two from the 52'
in the
preceding week but were twice as
numerous as in the cor¬
responding week of 1946 when 24 concerns
went out of business with
liabilities in excess of

than

qmer

gency.
The

being in
training

this

result it may be
necdown on quotas for
this
a

the
operating rate of steel companies
having 94% of
capacity of the industry will be
92.4% of
beginning Sept. 1, 1947, as compared with capacity for the
93.4% one week
ago, 94.9% one month ago and 84.5%

ures

ing every resource of our
the effort.
Only universal

this

the

re¬

our

and

Wholesale volume continued at
the high level

that, although we have come
a long
way in repairing the terri¬
ble damages of war
by aiding in
us

lacking,

foundation

deliveries.

week

your considered

Service
unification,
twice recommended to

only

serious

The

oward

hearty

one and all

secur

must

ingot output

scrap markets last
week
in line with
changes made at other
Most steel officials are
still
anxiously
watching the trend in scrap prices but
there was no evidence
week of any
this
sharp drop in quotations in the near
future.
The American Iron and
Steel Institute announced oriv

still

strong that no aggressor, however
rash, can persuade himself that

was

except a dip at Buffalo.
locations a week or so

dread

promised sheet

essary for this and other firms
to cut
product in the first quarter of
1948.

world

behind

Whyte

the skill and courage

continually .keep

danger that steel production will
slip sharply
but demand is so
strong that even a three or four
point decline
will be enough to force a
complete revamping of
present steel
quotas. One large
company expects to end

Chronicle.

face of his substantial needs and
by the lack of adequate

send

warmest personal

adequate

Schwabacher & Co.

are

There

those

and

ranks of

and

this

necessarily at
with

returned to normal peacetime ac¬
tivities, who is hardest hit by re¬
duced purchasing power in the

Still
on

i„i

mv?

are

•

Orders Executed

time

being pushed to the
hilt
are still
complaining about the steel
shortae*
shutting down in some instances until
banks of

There

American Legion.

lost

in
*fST

the

year»!

facilities

peak levels.

zens, but we must not forget that
it is the

the

Pacific Coast

•

much

states.,

built upon.

Thursday.

from attending in person the 29th
annual national convention of the

improve untiringly

the market's chances.

lit

assur¬

forces

Only the unremitting
of

it, last gling

duly mentioned in this

space.

means

armed

critical

stage of an¬
other emergency."
The full text
of the message follows:

back to the market

infected the market for

long,

of defense and offense is still de¬

the United States.

week the drab outlook which

had

become horrible in their destrucive power. But the effectiveness

President, in Message to
American Legion Meeting,
Urges Peacetime Training

now

coincide

exists

taken

and what's in store for

can

shall be peace on

nificant forward

«|:

time

for

they

dissuaded, and we
diverted, from our

San

can

(Continued from page 31)
it is that there

whispered

me.

inside informa¬

anything to

jump at

point out

Mean to Achieve Pence: Tinman

lifting of restrictions

be extended the security

markets/ Before you

1}'

article

and

in itself is

news

margin calls

than

long

profit.

saying that
place of a margin call, but

views

cannot

[The

pendent

only thing I didn't

the market itself.

meaningless where the

> i

If that is

were

ket is concerned.

More next

efforts to achieve His will.

The

which

bought.

We cannot be
shall not be

still

readily

ings

have

out
quite
if held long
enough, but I still prefer the

earth.

was

turn

steelmakers at
major flat-rolled

but steel consumers

the

situa¬

running

equipment nl
!
be installed much
before the middle of
next vDonl

not

the trade magazine

Un¬

profitably

sold

will

There

good and
for better earn¬
continued well in the

still

best.

individual

issues

were

Present rolling mill

are

look

may

behind promises made
placed.
It now looks like

order

news

the

that

the

months

leaders

tions

the prospects

fore.

up on gen¬

doubtedly

then

seen sooner

individual
run-ups in the next few days

discern¬

ible either remained static

expect.

start

pointed down. I know that all

The
stocks

meeting any real
It is possible that

resistance.

The fact remains,
however,
that for the past few weeks
what little trend

rally to about 183 to

this may

continued

move

active

Last week this writer said
that
the
market

sound; off:

194?

■

If it hadn't there would

some

alleviate

cline.

significant.

way

Indostn

(Continued from page
5)
flat-rolled steel situation is

best

that

point

i'U

stocks don't

be careful.

eral

closed up a point on the
day.
This in itself is
nothing to

fortunate that Tues¬

was

category,

points

result

have been little to
say.

ter

averages were up

day's market acted the

Thursday, September

The State of Trade and

stocks you have are in the lat¬

Tuesday's market pulled write home about.
But the
prices back from the edge. fact that it
happened on a day
Last week's signs confirmed
when a small crisis was in the
by recent action.
cards, made it particularly
It

CHRONICLE

strength, the chances are
about two they will lead a general de¬

the

Says—

Tuesday, however, the pic¬
ture
sharply changed with

ssBy WALTER WHYTE=

FINANCIAL

repetition of the drab with some stocks refusing to
share in the
days that had gone before,
rally.
If the

Tomorrow's

Walter

COMMERCIAL

Mr.

Curb

Exchange,

Nathaniel

associated
Stein

Stein
with

previously

with Cohu &

announce

Torrey.

has

be¬

the

firm.

had

been

$5,000.

JULY

INCORPORATIONS 8.6% BELOW AVERAGE

FIRST SIX MONTHS OF
1947
The number of

new

during July slightly

exceeded

below the average of

to the latest

businesses

the

first

the

incorporated
June

total,

six months

in the United States

but
the

was

year.

almost

According

compilation by Dun &
Bradstreet, Inc., the number of
stock companies formed
during July amounted to
9,041, a decline
of 24.6% from the
July 1946 total of 11,987.

WHOLESALE FOOD PRICE INDEX 7
CENTS IN LATEST WEEK
A general rise in food
prices, with advances in individual com-

THE

166 - Number 4626r-

Volume

numbering 11 as against only 2 declines, pushed

modities

COMMERCIAL

the

i.-

Continuing the increase of the

Some

(Continued from page 6)

index reaches new
will

previous three weeks, the daily

not

before

the advance begun about a month ago
reaching sharply higher levels during the week.
Cash corn reached an all-time high of $2.52 per bushel and then
turned slightly lower toward the end of the period as reports of
rain and cooler weather in the corn belt were received. Wheat
prices remained firm largely because of the poor condition of
the corn crop although heavy government buying was also an
important factor.
Good progress continued to be made in the
harvesting of the spring wheat crop.
Grain prices continued

demand for flour remained light.

The domestic

;his

dislocation

the conflict.

abor

out

any and

construction

Trading consisted

almost

and

manu¬

dictatorship

eft.

have

supports

with 34.71 cents a week earlier.

salaries

can

ahead of prices and taxes.
feeling of uncertainty has

This

the

robbed of all
iheir hard-earned savings.
Second,
we
insist
on
sound

American

stalwarts

American

free

en¬

'round

after wave of in¬
creased wage demands which in¬
evitably have been followed by
wave
after
wave
of price
in¬

brought wave

peace,

collective

bargaining contracts
employers
and
em¬
which we hold sacred

ployees,
and

inviolate.

when

the

this

believe

with

regulations

freedom

and

Fourth, we must increase the
present minimum wage. Under the
present ldw, the standard is only
40 cents 'an hour for a 40 hour

that

controls

the freedom

the

for

homes

comfortable

and

American people.

bureau¬

and

broad

will encourage

government intervenes

procedure,

cratic
our

year-

call for enactment of
housing program which
and speed up the
construction of millions of new
Third,

promoted through the negotiation
between

full,

standards of living.

can

maintain

employment at wages com¬

mensurate with decent American

industrial

this country are

measures

Labor

the people

must be halted before

We believe true

and

the

policy

democracy can
be advanced through
free, demo¬
cratic trade unions and free, dem¬
ocratic collective bargaining.
We

wages

the

system.
This cannot be
said of any other organized labor
movement in Europe or Asia.

will continue to rise and whether
not

our

believe

keep

right

bring the cost of living gradu¬

ally down to a more reasonable
e v e 1.
Price-fixing monopolies
must be
crushed
and inflation,

terprise

prevailing feeling of
uncertainty as to how long prices
or

domestic market declined slightly during
the past week with future contracts on the New York Cotton
Exchange dropping 82 to 106 points from the closing levels of a
week ago. Spot cotton closed at 34.13 cents a pound as compared

not

Furthermore,

by government
employees. Only the earnings of
such
groups
as
teachers have
lagged behind.
There is

Federation

made

been

This

the

demand that action be
prices

aken to reduce exorbitant
and

workers in many other nations.

strides

Great

well.

First,

in¬

all forms of totalitarian¬

Communist

have

perfect

dictatorship

tripled for full
in agriculture and
related fields.
In trade, the rise
las been over 75%, with workers
in the transportation field doing

facturing;

few years.

ism, whether they be the Fascistic

record

contract

the

opposed

today.

country

stands

strument for this crusade because
it opposes and always has

doing rather well in

are

betterment, measures
Congress has consistently
defeated or ignored in the past

free, dem¬

our

ocratic form of government.
The
American
Federation

time employees

Cotton prices in the

platform for 1948 calls for
other positive measures for

which

Americanism and

We are get¬
quantities
of
goods for
private consumption.
Earnings have doubled in mining,

sible for the advances.

economic

the

ting

generally of small-lot purchases of hard wheat flour, with most
bakers hesitating to buy beyond their immediate needs/
The gov¬
ernment's purchases of flour were light due mainly to the fact that
its prices have not advanced with the same rapidity as marked prices.
Lard prices, both cash and future, rose during the week.
The belief
that the lard supply early next year would be smaller because of
lighter feeding of hogs due to a smaller corn crop was mainly respon¬

buy

caused by

with all grains

human

(Continued from page 6)

much as before.
This is true after every war, with
wages and prices eventually staailizing at a higher level than

But

Our

By William Green

many

index, compiled by Dun & Bradstreet,
Inc., "advanced to a new postwar high of 275.64 on Aug, 22, 1947.
The'index closed at 273.70 on Aug. 26. This compared with 274.17 a
week earlier, and with 229.60 on the corresponding date a year ago.

(937)'

Conflicting Labor Day Statements

By Earl Bunting

wholesale commodity price

CHRONICLE

v-v

■

& Bradstreet wholesale food price index for Aug. 26 to $6.64
from $6.57 a week earlier.
This represents an increase of 22.5%
over the $5.42 for the corresponding date a year ago and is only
1.2% below the all-time peak of $6.77 established on March 4, 1947.

Dun

daily wholesale commodity
postwar peak.

FINANCIAL

How

week.

can

wage-earner

any

support a family on $16 a week
at present prices? This situation
is an economic blight upon our

the nation's industrial life are vi¬
inquiries were creases.
mostly for spot and nearby deliveries. The demand for print cloths
The reasons for this futile race olated.
remained strong and order volume was retarded only by the scarcity between wages
Why should a great labor fed¬
and prices are
of offerings.., Most mills were reported as being sold up through
really quite simple. Wages must eration which stands * for these
March 1948.
There was a considerable demand for fine-combed be examined from at least two high principles and constructive
yarn goods but offerings were very limited and prices continued to general points of view.
On one policies be assailed and persecuted
advance.
"!
,•
nand, they are income; on the through the enactment of reac¬
other they are costs.
One man's tionary State and Federal legis¬
Activity in the Boston wool market lessened slightly last

Trading in cotton textile markets was light and

nation and cries aloud for correc¬

enemies

the

but

tion,

labor

refuse to listen to reason.

•

.•

covered in regard to fine domestic wools. Finer grades of foreign wools were in demand but
offerings continued to be very scarce.

week with most mills being well

record

The

v.„,

The heat

wave

some

areas

abated last week and resulted in

Retail volume rose slightly above the
level of the previous week, and moderately exceeded that of the
corresponding week a year ago, according to Dun & Bradstreet, Inc.,
in its weekly review of trade.
Response to promotional Sales im¬
proved, though the resistance to increased prices and poor quality
merchandise was considerable in some sections.
Collections were
improved

interest.

consumer

prices r and
due to the simple
fact that wages are costs and not
income when it comes to deter¬
trends,

line. * Labor costs add

the

along

to something like

of all costs upon

;
1

requested.

beer continued to be heavily

The arrival of cooler weather

helped to lift Fall apparel volume

due to high temperatures. The
substantial and interest in wool
and crepe dresses revived.
Men's topcoats and heavyweight suits
increased in popularity and men's shirts, socks and neckwear sold
well.
The demand for both men's and women's shoes was large.
which had slumped in many locales
demand for back-to-school garb was

home furnishings were in

steady call.

The

heavy demand for better known major appliances continued to

Furniture and lamp promotions were instrumental in increasing volume in many stores.
The turnover of
paints and carpenter tools was very large. Extensive vacation

exceed the supply.

!
'

travel enlarged requirements for tires and automobile

accessories.

Retail volume for the country in the period ended on Wednes¬

><r

day of last week was estimated to be from 2 to 6% above a year
ago.
Regional estimates varied from those of a year ago by the
following percentages: New England declined 0 to 4%; Middle Wes ;
-4 to 8%.
Increases were: East 2 to -3%; South 5 to 9%; Northwest
3 to

7%; Southwest 4 to 8%, and Pacific Coast 6 to 10%.
generally steady and at a high level
remained at the level of the previous week

Wholesale trading was
last week.

Volume

corresponding week a
order
backlogs continued to be fairly large. Retailers purchased cau¬
tiously and some buyers endeavored to enlarge inadequate invenand

was

year

moderately higher than that of the

ago.

tories.

Deliveries improved slightly in some lines and

Quality merchandise was preferred.

With

<ended

below

the

same

period of last year.

This comparec

similar decrease in the

Aug.

23,

1947,

sales

preceding week.
For the four weeks
decreased by 3% and for the year to

date increased by 8%.
Retail trade in New York last week had the American Legion

Convention and the approaching Labor Day
with but department stores did manage,

report sales for the week at
week

holiday to contend
notwithstanding this, to
similar

level 'slightly less than the

year ago.

According

Reserve Board's index, department
City for the weekly period to Aug. 23, 1947,
same period last year.
This compared with
(revised figure) in the preceding week.
For the

the

Federal

store sales in New York

decreased 1% below the

decrease of 12%
four weeks ended
Aug. 23, 1947,
to date rose

by 8%.

be based.
constitute a

fixed
dollar

proportion
price

the

the'product in the long run.
Some

may

persons

argue

tha

prices should return to the 1939
level, but no one wants, nor exwages
to do the same

Dects,

thing—yet the two are inevitably
linked together.
-Production and improved serv¬
ices

only

the

are

guarantees

adequate real wages. We cannot
have things that we do not pro¬
duce. We can get more only by

producing more.

would mean more to
this country, there¬

the future of

fore,
every

than a firm resolution by
member of the production

sales declined 5% and for the year

That

Over the

has

By President Truman
(Continued from page 6)
lions of our unorganized workers
are
living, in this day of high
national income and high profits,
on sub-standard wages,
A promp
increase
in the minimum wage
Our social secur¬
and must be broad¬
ened by extending its benefits to
a
greater number.
Nor can we
long delay, without incalculable
rates is

needed.

the establish¬
adequate system Oj.
All these prob¬
lems deserve the attention of the
Congress early in its next session.
It is fitting that on Labor Day
we should acknowledge
the deb'
this country owes to its workers
of hand and mind, and that a ;
the same time we should solemnly

loss

ment

the nation,

health insurance.

recognize

our

common

responsi¬

bility to preserve and strengthen
the democratic principles which
have

made labor and

strong.

the nation

big

ques¬

of labor
-

learned

use

its

eco¬

effectively. Wages
working conditions have been
vastly improved by the organiza¬
power

tion

into

workers

free

trade

unions.
But

the

labor is

economic

progress

being threatened by
the enactment of restrictive antinow

which
would
outlqw the basic terms of collec¬
tive bargaining contracts negoti¬
labor

legislation

ated for

than half a century

provide for the imposition of

and

penalties upon employ¬
ers and employees who negotiate
these contracts willingly and, vol¬
criminal

ourselves

better future for

and

children,

our

must

strengthen and improve our social
security laws so that no worker
can be cast on the scrap heap in

and be forced to take a
pauper's dole. The new Social Se¬
curity program, which the Ameri¬

old age

Federation

can

Labor

calls for the inclusion

urges,

sound

system of health insurance, a for¬
ward step which is essential not

well-being of indi¬
our country's fu¬

to the

only

but to

viduals

ture security.

These things are

worth fighting

Certainly they are worth vot¬

for.

ing for!

Today, in spite of full employ¬
ment and high wages, labor in
than

disturbed

deeply

America

ever

before in

—

my*

The rising tide of prices
purchasing power of
wage-earner's dollar in half
wage rates are lagging behind
cost of living. At the same

memory.

has cut the
the
and
the

workers of the

the

time,

nation

organized at¬
tempt to undermine and destroy
purpose —to make strong unions the only
instrument which has
weak—weak unions weaker, and
faithfully and successfully served
make it difficult for all unions to to
protect their interests over the
function. Typical of these is the
years-r-their labor unions.
Taft-Hartley Act, without ques¬
The task and responsibility
are

alarmed by the'

untarily. Such laws have one main

tion

the most offensive

and most

reprehensible law ever .enacted
against the nation's workers.
,

It is the

constitutionality

challenge the

reprehensible legislation
courts of the land. We are

this

in the

the

Bill
be

and policy of
Federation of Labor

purpose

to share.
*

is the

and

firmly

both

chaos

past half-century, la¬

the American

—

good but

this Labor Day, 1947.

management
and
labor—to keep America at work
with everyone producing more so
that there eventually will be more

team

ity system can

Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index for the week ended Aug. 23, 1947
decreased 6%

which consumer

wages

sales

the

Nothing
Housewares and

75 to 85%

prices, as a whole, must

comparatively
weather commodities.

confusion?

can

result

tion raised by the voice

bor

interest

purchased large quantities of foods with

warm

which

bound

nomic

Increased amounts of
fresh fruits were bought for home canning.
The resistance to
high meat prices resulted in a slight price decrease in some areas.
Stewing meats, pot roasts and other less expensive cuts were
favored. The volume of canned meats, cheese, macaroni and fresh
vegetables rose.* Frozen foods, dairy products, soft drinks and
on

Nothing is made and nothing is
moved without labor somewhere

Therefore,

Consumers

lation

mining what prices must be.

generally slow.

centering

wages

explaining

toward

price
retail and wholesale trade exceeds level of
week and year ago

man's costs.;
goes far

income is another

if we hope

and finally,

Fifth,
for

that many of
of the Taft,-Hartley

convinced

sections
are

held

unconstitutional and will
invalid

by the

Suoreme
In ad¬

Court of the United States,

dition, we will seek the repeal of
this
most
highly
objectionable

legislation.
Our con¬
centrated efforts will be directed

anti-labor

toward the

accomplishment of this

labor

organized
will

ahead

the

not be to

ofj
months

arouse

.the

the
the
of that spirit

spirit of retaliation among
membership,
but to
keep

spontaneous surge
within disciplined bounds. For our
own

good and the welfare of our

country, we must keep

production

going at full blast and the wheels
of industry moving without seri¬
ous
interruption. We must fight
our
enemies, not with ill-con¬
sidered strikes, but with ballots,
the

peaceful, democratic,

American
I

have

sense

and

way.

great faith

of the American

in the good

people, and

of fairness that
animates them. It is my opinion
Furthermore, we will call upon
if labor upholds its responsibilities
the membership of organized la¬
to the public, the public will up¬
bor and all its friends throughout
hold labor. Within the few short
the nation to defeat all candidates
months since the enactment of the
for
reelection to Congress and
Taft-Hartley Act, the tide of pub¬
State Legislatures who voted for
lic
opinion already has swung
the passage of reprehensible leg¬
against it. Tests of public senti¬
islation.
Special detailed efforts
ment which have been taken re¬
will be put forth to prevail upon
cently show that a majority of
all workers and their friends to
the American people favor im¬
qualify to vote in the election and mediate revision or repeal of the
to
see
to it that nothing will
Taft-Hartley Law. I predict that
prevent them from casting their
as the evil provisions of the
lawballots on election day. In order
become more fully understood, a
to
make this possible,
we will
tidal wave of opposition will roll
seek
to
establish a holiday on
up against it and crash down upon
election day.
If we succeed in
the
heads of its sponsors and'
this
effort,
no
worker or the
supporters on election day, next
friend of a worker will have any
year!
excuse for failing to vote.
purpose.

the

spirit

(938)

THE

COMMERCIAL & FINANCIAL CHRONICLE

Securities

Now

Thursday, September

4,1947

Registration

»•

•

I'-

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

it-'
y

A. B. C. Vending
Corp., New York (9/22-30)
June 30 filed 105,134 shares
($1 par) common. Uitfer-

-{•I

writer—Reynolds & Co., New York.
ment.

Inc., and Smith, Barney & Co. of $16.30 per share were
submitted.

Price by amend¬

New York
June 17 filed
$3,000,000 15-year sinking fund debentures,
due 1962, with non-detachable
subscription warrants for
purchase

ment of loans

($1 par) common stock.
Waddell & Co., Inc., and First
Offering—To be offered publicly at $5
1 share.
Proceeds—Company will receive proceeds from
the sale of 58,880 shares
and four selling stockholders
proceeds from the sale of
rants for common stock to

war¬

Air

Purchase of

Underwriters—None.

aircraft, etc.

for

i'i

i'f

I'!
H

offered to employees of A.
T. & T. and those of 38
of officers, at approxi¬
mately $20 below the market price.
Payments are to be
made in instalments at
rate of

subsidiaries, with the exception

beginning December, 1947.
struction programs.

$5 per share per month,
Proceeds—To finance con¬

}<•
i

y
U

*■»
*

e*t

any shares not acquired

•

Carolina

manage¬

Telephone

stockholders

each five
par.

with

the

financing

purposes

connection

stock (no
par).

purchase

Stockenberg,
or

lease

the

New York.
number

presently being operated, etc.

Aug. 21,

1946,

Divco Corp., Detroit
April 30 filed 34,963 shares

writers—Reynolds &
both

itely postponed.

New

York.

Drackett Co., Cincinnati
April 28 filed 14,300 ($1
par)
writer—Van Alstyne, Noel &

FIRST BOSTON
CORPORATION
New York

Chicago and

other cities

Pittsburgh

common.

and

Price—$2

payment

indebtedness,

will be
of

new

Claude Neon,
March 28 filed

;

through
stations
-

pi|

'•§ <•§

PI §1 iiiiii
<;■

Sp |

\ 4

par)

through offi¬

For

equipment

and
~

Inc., New Yerk

226,454 shares ($1
par)

Duraloy Co., Scottdale, Pa.
March 12 (letter of
notification) 25,000 shares ($1 par)
common on behalf of
the issuer, 12,500 shares
($1 P»r)
common for the account
of Thomas R.
Heyward, Jr,
and 12,500 shares
($1 par) common for the account of
Mrs. Thomas R.
Hayward, Jr. Prioe—At market (ap-

Underwriter-

Under¬

added to general funds to
pay part of the cost
construction.

of common

To expand

purchase

shares.

Proceeds—Stock

Names of any brokers or
dealers en¬
gaged to help in distribution
will be
supplied by amend¬
ment.
Underwriting discount: 30 cents a share.

working capital.

Co.

30-year first mortgage bonds.
Underwriting—To be determined by
competitive bid¬
ding.
Probable bidders include:
Kuhn, Loeb & Co. and
Smith, Barney & Co.
(Jointly); Halsey, Stuart & Co.Inc.;
The First Boston
Corp.
Proceeds—To redeem $70,000,000 of first
mortgage 3V2% bonds at 103 Va. The balance

;

automobile

To be sold

Under¬

Duquesne Light Co.,
Pittsburgh* Pa.;
Aug. 1 filed $75,000,000

capital, etc. Offering indefin¬

share.

directors.

common

amendment.

Challenger Airlines Co., Salt Lake
City, Utah
Aug. 26 (letter of
notification) 150,000 shares ($1
cers

common.

being sold by Harry R.
Drackett, President (6,929 shares)
and Charles M.
Drackett, 7,371 shares). Price — By

•

The

($1 par)

Co. and Laurence M. Marks &
Co.,
Price—By amendment. Proceeds-

Shares are being sold
by a stockholder. Twin Coach Co
Kent, O., which will receive all
proceeds.

program.

Offering—Shares

Proceeds—Working

Corp.; Halsey, Stuart & Co. Inc.; Coffin &
Spencer Trask & Co.;
Dillon, Read & Co. Inc.
Proceeds—To redeem
outstanding mortgage bonds, series
<"F," due 1965, to repay bank
loans, and for property
additions.
Bids—Bids for purchase of bonds will be
received up to noon
Sept. 9 at company's office, Room
1702, 60 Broadway, New York.
\ f
'

shares for

Initially will be
offered for
subscription to common
stockholders at
rate of one share for
each 7% shares
held. Unsubscribed
shares will be sold
to underwriters.
Price by amend¬
ment.

•

17.

First Boston

Co« "nc., Fort
Way*#. Ind.
filed 90,000 shares
(no par) common.

Underwriter—None.

Chicago

($10 par)

Burr;

•

Frank V.

Aug. 18 filed 700,000 shares
($1 par) common. Under¬
& Co., Detroit.
Price— $1
share. Proceeds—To
purchase mining
equipment and
for working
capital.

July

Casualty Co.,

100,000

Boston Corp., New York.
Price ftf
amendment. ^Proceeds—Go to
Joseph Levy, President
felling stockholders. Offering date Indefinite.
py
Detroit Edison
Co., Detroit (9/9)
'
I
June 27 filed
$60,000,000 of general refunding mortgage
bonds, series "I," due 1982. Underwriting—To be deter/
mined by competitive
bidding. Probable bidders: The

«.

Inc., New York
notification) 10,000 shares
Price—$26.50 per share.

filed

Underwriters—First

writer—Davis, Hunter, Scott

Casabianca (H.),
Aug. 27 (letter of

bids

with

pro¬

•

Business—Mining.

expansion
advertise for

Price—$40 per share.
Proceeds—For
surplus accounts.
r
:
»
Crawford Clothes, Inc., L. I.
City, N. Y.
Aug. 9, 1946, filed 300,000 shares
($5 par) common;

exploration, sinking of
shafts, diamond drilling and
working capital.
Carshaw Porcupine Gold
Mines, Ltd., Windsor.
Ont.

expire Sept.

1946, filed 400,000 shares of common.
Under¬
writer—No underwriters.
Offering — To the public at
$1 a share in Canadian funds.
Proceeds—For a variety
of

Boston

construction

business.

its capital stock and

June 24,

finance

basis of one new share for
each five shares held.
Un¬
subscribed shares will be offered
to the public.
Rights

Under¬

Carscor Porcupln* Gold
Minos, Ltd., of Toronto,
Ontario

rejected. A joint bid
by The First Boston
Shields & Co.; Drexel &
Corp.;
Co., and White, Weld & Co. of
$17.68 per share and a
joint bid by
Dillon, Read & Co.

new

(9/23)

(9/18)
:
capital stock.
Underwriters—Glore, Forgan & Co., and William Blair
& Co., both of
Chicago. ' Offering—Shares are offered
for subscription to
stockholders of record Sept. 3 on

Telegraph Co., Tarboro,

the basis of two

Proceeds—To

Bids—Compaiiy expects

Continental

Aug.

shares held of record Oct.
1, 1947. Price—at
repay short-term bank loans in con¬

Business—Telephone

Atlantic City (N. J.)
Electric Co.
vfarch 19 filed
522,416 shares ($10
par) common, being
a+'fered by American Gas &
Electric Co.
Underwriters—
To be determined
by competitive
bidding. ProceedsOffering is part of American's
plan to dispose of its
holdings of 1,150,000
outstanding shares of Atlantic
The shares
City.
remaining after the public
offering will be
distributed as dividends on
American's common stock.
Bids—Bids for the purchase of

Corporate and Public
Financing

Co., Jackson, Mich.

Sept. 12, to be opened Sept. 23 at 20 Pine
Street, New
York.

Proceeds—To

nection

Langley & Co.
gram.

Sept. 3 filed 21,250 shares
($100 par) common/ Under¬
writers—No
underwriting. Offering—To be offered to

common

Power

Aug. 22 filed $25,000,000 30-year first
mortgage bonds.
Underwriting—To be determined by
competitive bid¬
ding. Probable bidders include:
Morgan Stanley & Co.;
Halsey, Stuart & Co. Inc.; White, Weld &
Co.; W. C.

proceeds to redeem $2,;■

•

Consumers

new

were

use

800,000 of bank loan notes.

classes of preferred
stock. These new stocks
were designed to
carry a lower rate of dividend
than
the present
preferred stocks and the
consequent reduc¬
tion in annual
dividend requirements was and
still is
regarded as a major
objective in the best interests of
'he
company and its shareholders. We
look forward to
Hie
accomplishment of this objective in the
near future."

Proceeds—To pay off indebtedness
and to finance
expansion of business.

by other stockholders. Proceeds

—Washington Railway will

contemplated nearly a year ago when
the share¬
holders at a special
meeting authorized the issuance of

the stock
submitted

—

Par.

ratio of
two shares for each
share held. The North
AmericanCo.,
holder of 50,197 of
Washington Railway's outstanding
65,000 shares of
common, will receive warrants to pur¬
chase 90,394 shares of
the offering. It also will
purchase

Associated Magazine
Contributors, Inc., N. Y.
Aug. 27 (letter of
notification) $100,000 3% convertible
1 otes due
March 25, 1948.
Price—Par.
Underwriters—None.
The notes will "be sold
direct to two individuals.
To increase
working capital for use in publication
of
"47—The Magazine of the Year."
n

Corp., Chicago (10/1)
July 25 filed $800,000 10-year first
mortgage 4%% sink¬
ing fund bonds.
Underwriters
Illinois Securities
Co.,
Joliet, 111., and Mullaney, Ross & Co.,
Chicago. Price-

group of banks.

Capital Transit Co.,
Washington
|
; " ^
Aug. 11 filed 120,000 shares
($100 par) common. Udderwriting — No
underwriting. Offering — The shares are
being offered by Washington
Railway & Electric Co. to
its common
stockholders at $20 a share in the

Proceeds—For investment.

Conlon-Moore

■u

market price.

(jointly).

common.

capital

stock. Underwriter—North American

—
Shares will be
offered only to those
stockholders who exchanged their
holdings of common for preferred in
1945.
Price—$35 a
share.
Proceeds—For corporate
purposes.
Business—
Manufacture and sale of textile
products.
:

clusion it will not be
necessary to issue any additional
shares of common stock"
as part of
company's refinanc¬
ing plan. In connection with
the sale
privately of $35,000,000 3Vz%
debentures
announced
July 17, 1947,
George A. Eastwood stated: "The
debenture sale permits
immediate accomplishment of
some of the
objective of
the
refinancing plan which the directors and

two

Louisville, Ky.

Securities Co., San
Francisco, is the general distributor. Price—Based
on

Callaway Mills, LaGrange, Ga.

Aug. 28 filed 123,306 shares
(no par)
writing—No
underwriting. Offering

common stock
(par $5).
Co., New York. George Underwriting—Kuhn, Loeb &
Eastwood, President, in letter
to
stockholders, Dec. 22, said: "We have come to the
con¬

ment

Armour and Co..
Chicago
July 12, 1946, filed 350,000 shares
(no par) cumul. first
^reference stock, Series
A; 300,000 shares of convertible
second preference
stock, Series A, and 1,355,240 shares

which the
company has negotiated with

of one

amendment
interests in oil

Commonwealth Investment
Co., San Francisco
Aug. 11 filed an unspecified amount of common

the securities scheduled
for May 20 and
postponed to June 18 further
delayed.
It is reported
company has abandoned sale of preferred
for a construction
credit and term loan of
$9,000,000

American Water Works
Co., Inc., N. Y.
March 30, 1946 filed
2,343,105 shs. of common (par
$5)
plus an additional number
determinable only after the
results of competitive
bidding are known. Underwriters
—To be filed
by amendment. Probable bidders
include
Dillon, Read & Co. Inc., White, Weld &
Co., and Shields
& Co.
(jointly), and W. C. Langley & Co. and The
First Boston
Corp. (jointly).
Offering—Price to public
by amendment. Bids are
expected to be advertised some
time in September.

additional

offered fo>

basis

Proceeds

bid of 100.06

Fenner & Beane and
Harriman, Ripley & Co.
Bids—Bids for the purchase of

Price

—The shares are being sold
by Corning Glass
Works,
New York, and represent 88.8% of
the total
outstanding
common of the
company.
Offering indefinitely post¬
poned.

4.30% dividend. Harriman
Ripley & Co. bid 100.779
for a 4.40% dividend.
Indefinitely postponed.
California Oregon Power Co.
March 26 filed 60,000 shares.
($100 par) cumulative pre¬
ferred. Underwriters—To be
determined by competitive
bidding. Probable bidders include: First Boston
Corp.
and Blyth & Co. Inc.
(jointly); Merrill Lynch, Pierce,

American Telephone &
Telegraph Co., New York
Aug. 15 filed 2,800,000 shares
($100 par) capital stock.
Underwriting—No underwriting.
Offering—Shares will

,i:

($5 par) common.
Underwriters—Harriman Ripley & Co., and Lazard
Freres &
Co., both of New York. Price by amendment.

share of each.

cost

held.

Mar. 28 filed 182,520 shares

Brooklyn (N. Y.) Union Qas Co.
May 3, 1946 filed 70,000 shares of cumu.
preferred stock
($100 par). Underwriters—To be filed
by amendment.
Bids
Rejected—Company July 23, 1946, rejected two
bids received for the
stock. Blyth & Co.,
Inc., and F. S.
Moseley & Co. and associates submitted a

Commuting, Inc., New York
Aug. 29 (letter of notification) .966 shares
of capital stock
(no par).
Price—$100 per share.

will

stockholders

Cohart Refractories Co.,

Price by amendment.
Proceeds—For pay¬
and for other corporate purposes. ~

cent

one

each

leases.

Brockway (Pa.) Glass Co., Inc.
Aug. 11 (letter of notification) 5,000 shares of
5% cumu¬
lative preferred
(par $50). Price—$50. Underwriters—
None.
Proceeds—For additional
working capital.

underwriters at an aggregate
price of $2,000. Net proceeds will be used to
pay current
bank loans and for
working capital.
•

Name

Underwriter—White and Co., St.
Louis, Mo. For expansion of operating facilities and foi
working capital.

Company

20,000

—

Flying Service, Inc., Robertson, Me.
(letter of notification) 50,000 shares ($1 par)
cumulative, convertible preferred and 50,006
shares (10c par) common.
Price—$5 per unit, consisting;,

(9/10)

64,366 shares.

Underwriter

Brayton

Underwriters—Herrick,

stock.

for

Proceeds—Towards

March 24

27 Vz

Colony Corp.

sale

common

amendment.

Vending
Co., Philadelphia, and Sanitary Automatic
Candy Corp.,
New York. Name
formerly American Vending Machine
Corp.

the proceeds from the
also will receive

Offering—Shares
common

Barium Steel Corp.,

Proceeds—Of the total, 120,000 shares are
being
sold by
stockholders; 20,124 are being issued to A. J.
Morris for services; 25,000 are
being sold by the com¬
pany. The company will use
proceeds for organizational
purposes, which includes the merger of Berlo

Acme Electric
Corp., Cuba, N. Y.
June 26 filed
123,246 shares

writing—None.

subscription to

common.

Under¬

Number 4626

Volume 166

THE COMMERCIAL

offered through registered brokers and dealers.
Offering
—To the public in the United States and to owners of

NEW ISSUE CALENDAR

blocked sterling and Palestine pounds.
Price—$395.92
.per unit.
Proceeds—To make first mortgage loans on

September 5, 1947

•

& FINANCIAL CHRONICLE

real property in Palestine and to finance
operations of
the General Housing
Association, Ltd., a firm

{Stereo Pictures CorpNotes and Common
September 8, 1947

organized

to erect

Illinois-Rockford Corp....
Common
McPliail Candy Corp
-Pref. and Common
September 9/1947
Detroit Edison Co.," noon (EDT)
BondsFlorida Power & Light Co—Preferred"?
General Telephone Corp—————Preferred
J
September 10, 1947
Acme "Electric Corp——Common >
Pan American Export Corp—-—Class A Common T
.

dwellings for rental to the public in Palestine.

General Telephone Corp., New York (9/9)
Aug. 19 filed 200,000 shares ($50 par) cumulative pre¬
ferred.
An unspecified amount of common also was
registered for conversion privilege of preferred. Under¬
writers—Paine, Webber, Jackson & Curtis, and Stone &
Webster Securities Corp., both of New
York, and Mitchum, Tully & Co., San Francisco. Price by amendment.
Proceeds-—To finance construction programs of its 30-

Payne Cutlery Corp—---———-Common
Russell tF. C.) Co——-—-Common
Seaboard Finance Co.——-——
——Preferred
Tennessee Gas Transmission Co
-—Bonds & Pfd.

subsidiary telephone companies operating in 17 states.

September 15, 1947
Revere Racing Association Inc
Common
Standard-Thomson Corp
Debs, and Common
Monongahela Power Co.——Bonds and Preferred
September 16, 1947

exercise of stock purchase warrants.

Glansdar Taxtlla Corp., N*w York

•

--——Common

September 18, 1947
Continental Casualty Co.—_Capital Stock
.•

;

•

Hooker Electrochemical Co

September 22, 1947

Underwriter

Corp.—1—

Common

—

;

September 24, 1947

—

October 1,

Conlon-Moore Corp
October

common

—

Debentures ~
Bonds ':

proximately $3.25 per share).
Underwriter—Johnson
Johnson, Pittsburgh, Pa., and The First Cleveland
Corp., Cleveland.
The company wiU use its proceeds
for working capital.

balance will be sold at public or private sale.

pany. Proceeds — For corporated purposes including
modernization and Improvement of the manufacturing

amendment.

•

working capital,

Philadelphia

Helicopter Air Transport, Inc., Camden, N. J.

withdraw as .such. Price—$3.50 a share. Proceeds—Net
proceeds will be used-to pay obligations, purchase helicopters and equipment and for working capital.
Hooker Electrochemical Co.

shares ($5 par)

replacfogoriginal program (filed June 26) to
sell 110,000 sharesof cumulative, Series A (no par)
preferred stock. Underwriter — Smith, Barney & Co.
will be principal underwriter for purchase of-common
not subscribed for by the company's common stockhold¬
ers.
Offering—Shares are offered to common stockhold¬
ers of record Sept. 2 on the basis of one share for each
five shares held.
Rights expire Sept. 17, Price—$21.50
per share.
Proceeds—For general corporate purposes
including the financing of a portion of the company's
plant expansion program.

Federated Department Stores, Inc., Cincinnati
July 31 filed 584,470 shares (no par) common. Under¬
writing—No underwriting.

Offering—Of the total 102,in exchange for common?
stocks of Wm. Filene's Sons Co.; Abraham & Straus,
Inc.; Bloomingdale Bros., Inc., and the F. and R. Lazarus
and Co., all subsidiaries of Federated.
In addition, the
registration covered 482,174 shares of common'for a ten¬
tative public offering by 18 stockholders.
These may be
offered

Illinois

Fowsr Co..

Decatur, III.

June-17, 1946 filed 200,000 shares ($50 par) cumu. pre¬
ferred stock and 966,870 shares (no par) common stock.
Underwriters—By competitive bidding. Probable bid¬
ders include Blyth & Co., Inc.; The First Boston Corp.;
Florida Power & Light Co. (9/9)
; W. E. Hutton & Co. Proceeds—Net proceeds from the
June 24 filed 100,000 shares of $100
sale of preferred will be used to reimburse the com¬
par cumulative pre¬
ferred.
Bids—No bids submitted for purchase of stock
pany's treasury for construction expenditures. Net pro¬
which was advertised for sale on
ceeds from the sale of common will be applied for re¬
July 29.
Financing
Revised to cover sale of 100,000 shares of preferred with demption of 5% cumulative convertible preferred stock
The First Boston
not converted. into common prior to the redemption
Corp., and Smith Barney & Co. as
underwriters.
date.
The balance will be added to treasury funds.
sold from time to time at the market
Stock Exchange.

kin, Jacobs & Co., New York. To purchase new machines
and equipment; to
pay off some current liabilities and
to add to
working capital.
•

General

Mortgage Bank of Palestine, Ltd.,

Tel-Aviv

Sept. 3
in

filed

$3,578,389 4% debentures. Debentures are
Series L, $548,389, maturing 1958-1966;
$1*010,000, maturing 1958-1966; series M.
maturing 1952-1967.
Underwriters—To be

three series:

020,000,

Company bag asked the SEC to defer action on its fi¬
nancing program because of present market conditions.

Illinois-Rockford Corp., Chicago

(9/8*12)

July 24 filed 120,000 shares ($1 par) common.

Under¬

& Blosser, Chicago.
Price—$9.25 a share.
Proceeds—The shares are being
sold by four stockholders and represent part of the stock
the sellers will receive in exchange for" their holdings
of four furniture companies to be merged with the regis¬
trant. The merging companies are Toccoa Manufacturing
Co. and Stickley Brothers, Inc., both Illinois corpo¬
rations, and the Luce Corp. and Stickley Bros. Institu¬
tional Furniture Co., both Michigan corporations.
writers—Birailsford & Co., and Straus

Glass Co.

Koch Chemical Co., Winona, Minn.
July 22 (letter of notification) 60,000 shares ($1 par)
common.
Price—$5 a share. Underwriter—H. P. Carver
Corp., Boston.
To retire debt and for working capital.

La Plant-Choate

Manufacturing Co., Inc.,
Rapids, Iowa
April 30 filed 60,000 shares ($25 par) 5% cumul. con¬
vertible preferred. Underwriter—Paul H. Davis & Co.,
Chicago. Price—$25 per share. Proceeds—To be added
to working capital and will be used in part to reduce
current bank loans.
Cedar

Legend Gold Mines, Ltd., Toronto, Canada
filed'300,000 shares ($1 par) common treasury
stock.
Underwriting — To be supplied by amendment.
Price—50 cents a share. Proceeds—To develop mining
properties. Business—Mining.
June 27

Liberty Loan Co., Inc., Buffalo
Aug. 26 (letter of notification) $250,000 debenture notes

(inclusive of $63,700 notes issued without being regis¬
reoffered). Operation and expansion of.
Underwriting—None.

tered and being

business.

Falco Manufacturing

Co.,

Inc.,

Little Falls,

July

3l"

(letter of notification) 5,000 shares ($2 par)
To be sold at market.
Underwriter—Birn& Co., New York. Shares being sold on behalf of

common.

baum

two stockholders.
•

Co., Inc., Lutherville, Md.
(letter of notification) 41,500 shares ($1 par)
Price—$1 a share.
The stock is to be sold

LuMont

Aug. 27
common.

through Harrison G. Montell,

President, who will receive

compensation 4,150 shares of common not included
in the public offering.
To purchase site, erect and equip
building for manufacture of canned dog food.
as

•

Majestic Radio & Television Corp.,

Elgin, III.
Not
dis¬

Aug. 27 (letter of notification) $100,000 common.
on behalf of the company; person selling stock not
closed. To be sold at market.
No underwriting.

the New York

Florida Rami Products, Inc.
(9/29-10/3)
Aug, 1 (letter of notification) 100,000 shares ($1 par)
class A common.
Price—$3 a share. Underwriter—Bat-

(Pa.)

N. Y«

common

loans.in the amount of $1,295,000 to Bankers Commer¬
cial Corp., New York, and for additional working capital.

(9/18)

Aug. 20 (by amendment) filed 134,034

with $755,000 of other bonds, will be used'to repay the
balance of $34,000 of a property mortgage, to pay off

Reed Corp.,

(letter of notification) 8,000 shares of $1.50
cumulative preferred stock (no par) and 16,000 shares of
common stock (par 50c).
Price—$25 per unit, consist¬
ing of one preferred and two common, plus dividends
on
preferred.
Underwriter—Coffin, Betz & Sullivan,
Philadelphia. Working capital, acquisition of additional
capital equipment, payment of $35,000 funded debt and
expenses of projected sales campaign.
26

March 14 filed 270,000 shares of capital stock. Under*
writer—Strauss Bros., Inc., New York. Underwriters may

•

Feb. 26, filed

will

Harmonic

Aug.

par) common on behalf of officers and stockholders. The
80,000 shares will be sold at $3 a share. The 15,000 shares
will be sold to L. D. Sherman & Co., New York, the

Price—By

Proceeds—To purchase capital stock of its

subsidiary, H. & H. Candy Corp., and to redeem its out¬
standing 5% preferred stock. Business — Manufacture
of chewing gum.

plant and machinery and eauinment.

Price—$7.25 a share.
The registration states princi¬
pal stockholder has granted the underwriters an option
to purchase 45,000 shares of class B ($1 par) common
at $7.25 a share, exercisable for a period of three years.
Proceeds—Proceeds of approximately $870,000, together

Hemphill,

18,500 shares of common will be offered to officers and
employees and an unspecified number of common shares
.will be offered to officers, directors and partners of the
underwriters and to certain of their customers.
The

Edelbrew Brewery, Inc., Brooklyn, N. Y.

Unsub¬

Kentucky Utilities Co., Lexington, Ky.
May 9 filed 130,000 shares ($100 par) cumulative pre¬
ferred. Underwriters—To be determined by competitive
bidding. It was announced July 25 that the company hat
instituted conversations with The First Boston Corp.,
Lehman Brothers and Lazard Freres Co. (jointly) towara
underwriting the stock. Offering—Preferred stock ini¬
tially will be offered in exchange for outstanding ($100
par) 6% preferred and ($50 par) junior preferred. The
basis of exchange will be one share of new preferred,
for each share of 6% preferred and one share of new
preferred for each two shares of junior preferred/ Shares
of new preferred not issued in exchange will be sold at
competitive bidding. Proceeds—Proceeds from the sale
of new preferred will be used to redeem unexchanged
shares of old preferred. Bids—Bids for purchase of stock
advertised for July 14 postponed.
Expected that offer¬
ing will be made end of September.

class A shares will be offered in units of one share each.

Dec. 31,1946, filed 5,000 shares ($100 par) 5% non-cumul
preferred. Underwriters—None. Offering—-To be offered
at par to customers, officers and employees of the com*

"Federal Electric Products Co., Newark, N. J.
150,000 shares ($1 par) common class A
Underwriter—E. F. Gillespie & Co., Inc., New York.

reduce

•
Gum Products, Inc., Boston
Aug. 29 filed 175,000 shares class A ($5 par) 60 cent cu¬
mulative convertible stock; 273,500 shares ($1 par) com¬
mon, and 350,000 shares of common reserved for con¬
version of the class A stock.
Underwriter—Blair & Co.,
Inc., New York.
Offering—175,000 common shares and

principal: underwriter, at 60 cents a share. The under¬
writing discount for 80,000 shares will be 50 cents a
share. The company will use its proceeds to increase

Jeannette

loans.
-

-Debentures

Empire Projector Corp., New York (9/22-30)
Aug. 21 (letter of notification) 80,000 shares ($1 par)
common on behalf of the
company, and 15,000 shares ($1

stock. Underwriters—Riter & Co. and

share for each five held.

Aug. 4 (letter of notification) 420 shares of 7% cumula¬
tive preferred stock,
Price—$105.
Underwriter—Mc¬
Laughlin, MacAfee & Co., Pittsburgh. Working capital.

Noyes & Co. Offering—Underwriters will purchase from
the company 70,000 shares and from Fred P. Murphy
and J. C. Graham, Jr., 100,000 shares of issued and out¬
standing common.
Proceeds—For reduction of bank

——Bonds

21, 1947

Pacific Tel. & Tel. Co.——

296

($1
stock.
Co., Los Angeles. Offering —

share. Proceeds—For business expansion and to

new

City Gas & Electric Co, Proceeds—For
construction and expansion of system. Bids—Bids for
purchase of securities expected about Sept. 16.

Society, Inc., New York
April 2, 1947 (by amendment) 170,000 shares of $1 par

1947
-

at the rate of one

Grolier

--Capital Stock

September 30, 1947
Metropolitan Edison Co
New England Tel. & Tel. Co.

der, Peabody & Co. and Blyth & Co., Inc. (jointly); The
Corp.; A. C. Allyn & Co.; Harriman Ripley
& Co., and Equitable Securities Corp. (jointly).
The
common will be offered to the company's stockholders

First Boston

short term indebtedness.

September 29, 1947
Florida Rami Products, Inc.————Common

new construction
Bids expected about Sept. 24.

109,866 shs. ($15 par) common. Underwriters — To be
determined by competitive bidding for the sale of the
bonds. Probable bidders: Halsey, Stuart & Co. Inc.; Kid-«

subscribed shares will be offered publicily at $2 a share.
The underwriters will receive a commission of 25 cents

Bonds and Stock

National Union Fire Ins. Co.—

Fewel &

retirement, finance

Iowa Public Service Co. (9/16)
Aug. 6 filed $3,500,000 of 1st mtge. bonds, due 1977, and

Shares will be offered to stockholders at $2 a share in
the ratio of one new share for each two now held. Un¬

—Bonds

————

Interstate Power Co

—

debt

scribed to Sioux

Common

Empire Projector Corp..
September 23, 1947
Consumers Power Co-

ceeds—For

Angeles
par) capital

^Aug^ll^filed^249,972 shares

A. B. C. Vending

reserved for issuance upon the
Underwriter—Van
Offering—The 300,000 shares are

3Sj

Interstate Power Co., Dubuque, Iowa
(9/24)]
May 13 filed $19,400,000 of first mortgage bonus, due
1977, and 3,000,000 shares ($3.50 par) capital stock.
Underwriters—To be determined by competitive bid¬
ding,
Probable bidders:
Lehman Brothers, Goldman,
Sachs & Co. and The First Boston Corp.
(jointly);
Halsey, Stuart & Co. Inc. (bond only); Harriman Ripley
& Co., and Dillon, Read & Co. Inc.
(stock only). Pro¬

Great Western Biscuit Co., Los

Common

i_—-:

are

AJstyne, Noel Ac Co.
lamed and outstanding and being sold for the account
of certain stockholder*.
Company has also issued 55,009
stock purchase warrants to the selling stockholders at
10 cents a share entitling them to purchase up to Aug.
1,
1940, common stock of the company at $11 a share. Price
by amendment.. Offering temporarily postponed.

Iowa. Public Service Co-^-i__Bonds and Common
San Diego Gas & Electric Co

55,000 shs.

(939)

Inglewood Gasoline Co., Beverly Hills
< <|
July 7 (letter of notification) 100,414.8 shares ($1 par)
capital stock. Price—$1 a share. To be offered to stock¬
holders, Unsubscribed shares to be offered publicly
through Bennett & Co., Hollywood. To purchase equip¬
ment, liquidate indebtedness, and for working capital.
An amended application may be filed in near future.

and for working capital.

Aug. 28, 1946, filed 355,000 shs. ($1 par) common, of
which

Manhattan Coil Corp., Atlanta,
Mav 20 filed

1957; 12,000

$500,000 5%

Ga.

serial debentures, due 1949-

shares ($25 par) 5^4% cumulative

converti¬

preferred and 85,000 shares ($1 par) common. Tnderwriter—Kirchofer & Arnold, Inc., Raleigh, N. C. Price
—The debentures at 102.507, while the preferred shares
will be offered at par and the common shares at $4
each.
Proceeds—To retire bank indebtedness^ and to
finance purchase of machinery and other plant equip¬

ble

ment.

Manontqueb

Explorations, Ltd., Toronto,

April 10 filed 300,000 shares ($1 par) common.
writer
F. H. Winter & Co. Price—40 cents
Proceeds—For exploration
claims.

Can.

Under¬

a share.
and development of mining

Business—Mining.

Mays

<J. W.) Inc.,

Brooklyn, N. Y.
common.

Peb. 28 filed 150,000 shares ($1 par)
writer—Burr & Co, Inc, New York.
Proceed. Of the total, 100,000

ment

■old by aeven

Under*

Price by. amend¬
shares are being

stockholders. The remaining
(Continued on page 36)

50,000 shares

(940)

THE
"

are

(Continued from page 35)

SEC to

being sold by the company, which will use its pro¬

ceeds

for

general

Aug. 25

& Co.,

11,100 shares

Underwriter—Granbery,

Lord, New York.
McPhail

Corp.,

Chicago

tion and

Underwriters—Brailsford

Bolger & Co., Chicago.

Price

—

and $6 a common share.

(9/8-12)

it to

pay off bank loans, buy new equipment and for
working capital. The common stock is
being sold by
Russell McPhail, President.
•

Metropolitan Edison Co., Reading, Pa.
Aug. 29 filed $4,500,000 of first mortgage bonds.
writing

—

determined

(9/30)
Under¬

by competitive

be advertised for
•

Mojonnier Bros. Co.,. Chicago
Aug. 27 (letter of notification).
20,000 shares (no par)
common, stated value $10 per share.
Price—$10 per
share. No
underwriting. For general corporate purposes.
'

unit
-

ance

when,

for

will

share; 165,259 shares

are

offered

reserved

for issu¬

having conversion

features shall be converted into
shares of capital stock.
The reserved shares will
not be underwritten. Proceeds

—For

general corporate

Rochester

(par

None.

$5).

Price—$5
manufacture toy

National Union Fire Insurance
Co. of
Pittsburgh,

Pa.

[Aug.

(9/29)

5 filed 180,000 shares

•

($5 par) capital stock.

Un-

(N.

fehares
"hrice

nine

expire at 10

will be offered

$25

a.m.

Sept. 29.

••

Unsubscribed

Proceeds—To

funds for investment in
securities.

added

porary financing measure toward
construction costs; and
to finance further
construction costs.
Bids — Company
intends to invite sealed
bids to be delivered to
company
at 195

Broadway, New York, by Sept. 30.

Old
Mar. 31

Poindexter Distillery,
filed

50,000

Inc.,

working capital.

postponed.

Class

common

Class A

common.

warrants
per

and

are

warrant.

New York.

Pasco

23,250

for

Price—$2,625

par)
purchase of

per common share and
sold to the
underwriter at one cent

Underwriter—Henry

For expansion.

Mining

Corp,

Ltd.,

Canada
Aug. 8 filed 333,333 shares of

Rosenfeld

Montreal,

Co.,

Quebec,

common, nominal value of
Underwriter—Mercer Hicks &
Co., New York
Price—30 cents a
share, Canadian funds. The
write r
under¬
ives a discount 0f
7% cents a
funds.
share, Canadian
$1.

Proceeds—For exploration

•

Payne

~2n
90c).

(par
of

mining'

property.

Cutlery Corp.,

Brooklyn, N. Y.
K2tification) 14,000 share? of
Price—$1,875

for benefit of
named

per

underwriter.

share.

Greenfield,

JuiyPM1b,i®KS®7,ce
2b, 565,553
i

Co-

Offered

(par $10),

common

behalf

lssues an order

Thp
^ltfi«catlPn plan aPProved
PtAX7"r

now

soon as the U. S.
enforcing its cor-

by the SEC last June.
vy me
laSlJUne.
N™ Fnl J D is in connection with the
New England
plan. Aug. 15
Public Service
Co. filed
application
cnlo

with

preferred,

•

advertised Aug. 5.;t

Royal

Gorge

Manufacturing Co.,

Canon

Aug. 27 (letter of
notification) 780 shares (no par) com¬
and 1,000 shares
($100 par) preferred.
Price—
per

ery,

unit.

equipment,
Russell

♦

underwriting.

and

For additional machin¬

buildings.

Co., Cleveland

(9/10)

Under¬
amend¬

stock

Underwriter—Eastman, Dillon & Co., New York. Price
by amendment.
Proceeds—Shares are being sold
by 13
stockholders who will receive
proceeds.

San Diego Gas &
Electric Co.
(9/16)
Aug. 21 filed 300,000 shares
($10 par)

common.

Under¬
writing—To be determined
by competitive
Probable bidders
bidding.
included Blyth &
Co., Inc.; White
Weld & Co., and
Shields & Co.
(jointly); The First Bos¬
ton

Corp.

Proceeds—To reimburse

expenditures heretofore

an amount equal to such

treasury funds

made.

net proceeds to

program.

16.

Daniel,

(Canadian funds).

Toronto.

Price—50

Proceeds—For

Seaboard Finance
Co., Los Angeles
Aug. 20 filed 100,000 shares
ible preferred.

amount

conversion

common

new

issued

upon

preferred.

"
Un¬
a

pur¬

preferred and

one

stock

mon

The
'

debentures with

com-?

warrants

common

debentures.

attached will be offered publicly*.
shares will be reserved 'for
conversion of

Business—Manufacturer of aircraft and au¬
tomobile equipment.
Upon completion of financing com¬
pany will merge its wholly-owned

subsidiary, Clifford

State Bond and

Mortgage Co., New Ulm, Minn*
Aug. 26 filed $1,000,000 of Series 1305
certificates; $1,-

915,200 of Series 1207-A
certificates; and $19,706,400 of
Series
1217-A
certificates.
Underwriting to be sold

through officers
sales

and

employees of the company and its
headed by its sales manager,

organization,

Price—Series 1305 certificates, $1,certificate; Series 1207-A cer¬
$1,000 face amount certificate, and

000 per $1,000 face amount

tificates, $957.60
Series 1217-A

•

selling face
Stereo

Aug.

notes

per

certificates, $856.80

Proceeds for

per

investment.

$1,000 face amount
Business—Issuing

amount certificates.

Pictures

(letter

and

Corp., New York
notification) $150,000

(9/5)
5-year

5%%

150,000 shares of common stock
(par 10c).
Price—Par, for notes with bonus of 100 shares of com¬
mon
stock with each
$100 note.
Underwriters—None.
Working capital, etc.
Strauss Fasteners
Inc.,
March 25 filed 25,000 shares of
vertible preferred.

New

York

60 cents cumulative con¬

Underwriter—Floyd

D. Cerf Co. Inc.,

one

Offering—The shares
initially will be offered
common stockholders of
Segal Lock
Inc., parent, at $9 a share in the ratio

of preferred for each 30
shares of Segal
held.
Unsubscribed shares of preferred will be
offered publicly at $10 a
share. Proceeds—For additional
working capital.
,

Tennessee Gas Transmission Co.
(9/10)
/ Y
Aug. 18 filed $40,000,000 of first
mortgage pipe line
bonds, due 1967, and 100,000 shares
($100 par) cumula¬

tive

(9/10)

exercise

cumulative

common

($50 stated value) convert¬
Company also registered an
unspecified

privilege

J.'

mortgage bonds.
by competitive bidding.

for subscription to
& Hardware Co.

cents

corporate

first

(par $1). Under¬
writers—Lee Higginson
Corp., and P. W; Bropks & Co.»
Inc., New York. Offering—The

Chicago.

Santa Maria
Mines, Ltd., Toronto, Canada
Aug. 4 filed 250,000 shares
($1 par) capital stock.

derwriter—Mark

for

finance, in part,

Bids-Expected

Newark,

Standard-Thomson Corp.,
Dayton, O.
(9/15)1
Aug. 27 filed $1,750,000 5%
sinking fund debentures, due
'1967, and 272,500 shares of common

use

plans to

Co.,

Southwest Lumber
Mills, Inc., McNary, Ariz.
11 (letter of
notification) 40,000 shares ($1 par)
capital stock. Price—$7.50 a share. To
be offered to
stockholders. Any shares not
purchased by stockholders
will be bought by
Imperial Trust Co., Ltd., of Montreal,
Can. To restore
working capital.

and

capital

Gas

Aug.

certificate.

Salant & Salant, Inc..
New York
March 28 filed
240,000 shares ($2 par)

Jersey

Hermann T. Tucker.

by stockholders

who will receive
proceeds.

South

own

(F. C.)

Aug. 20 filed 113,678 shares
($1 par) common.
writer—Mconald & Co., Cleveland.
Price—By
ment.
Proceeds—Shares are being sold

capital

program.

Mfg. Co., Boston.

City,

mon

$100

Co., and J. H. Hilsman & Co., all of
Atlanta,
Ga.; Johnson, Lane, Space & Co.- and
Varnadoe-ChisCo., both of Savannah, and Putnam &
Co., of
Hartford, Conn.
For payment of indebtedness
and to
defray part of the cost of its expansion and
improvement

Price—$12.50 per unit. Under¬
writer—Southeastern Securities
Corp., Jacksonville. For
working capital.

off de¬

pay

manual to automatic dial
oper¬
in Rochester.
Bids—No bids submitted
for pur¬
chase of the stock when

poses.

owned

Co., filed with SEC.
terms of offering

h^Ta?d
District CouTi?
New England as

Will

cumulative

rts_ 1947, construction

New Hampshire
shares

first

telephone system from

opened Sept.

Lax & Co.,
Inc., who is

pKublic. Service

ation

common

series

notes, and for property expansion and
conversion

Offering indefinitely

warrants

4Ms%

mand

Colo.

Pan-AmCrican Export
Corp., Newark (9/19)
Aug. 14 (letter of
notification) 93,000 shares ($1

pre¬

Robinson-Humphrey-Co.; Milhous,

share ($10 par) 6%
share ($1 par) common.

permission

& Co. (jointly); Blyth &
Co., Inc.;
Glore, Forgan & Co.; Shields & Co.
Proceeds—To redeem

par) 5% convertible
cumulative preferred and an
unspecified number of ($1
par) common shares into which
the preferred is conver¬
tible.
Underwriters—F. S. Yantis &
Co., and H. M.
Byllesby & Co., both of Chicago. Price—At
par. Proceeds
—To be added to

SEC

competitive bidding. Probable
Pierce, Fenner & Beane and

bidders—Merrill Lynch,

Louisville, Ky.

($20

Underwriting—By

Kidder, Peabody

writing — To be
Probable bidders:

asked

Fla.

17, due
New York P. S. Commis¬

Gas

July 29 (letter of notification) 8,000 units
consisting of
one

June

ferred.

Co.

of 35-year debentures.
Under¬
determined by competitive
bidding.
Morgan Stanley' & Co.;
Halsey, Stuart
& Co. Inc.
Proceeds—To repay money advanced
by its
parent, American Telephone &
Telegraph Co., as a tem-

Instead company June

announced

Rochester (N. Y.)
Telephone Corp.
4 filed
67,500 shares ($100 par) cumulative

England Telephone and
Telegraph

(9/30)
'
Aug. 29 filed
$40,000,000

financing, it was
"unacceptable" conditions of

to issue unsecured
notes.

cash
,

New

proposed

sion.

publicly through the underwriters,

share.

per

shares for each

Atlantic

Southeastern Development
Corp., Jacksonville,

•

(to subscribe at rate
.held.
Rights

Proceeds —For

work and for

•

Probable bidders:
Halsey, Stuart & Co. Inc.; The First
Boston Corp.
Proceeds—To redeem
outstanding securi¬
ties of Atlantic
City Gas Co., and Peoples Gas Co., which
were merged to form
South Jersey Gas Co.
BusinessPublic utility.

,derwriter—The First Boston
repay $3,500,000 bank loan and to
finance new
Corp., New York.
Offerconstruction.
fing—Stockholders of record Aug. 25 are
Corporation has temporarily abandoned
given the right'., the
,

share.

Sept. ,3 filed $4,000,000 30-year
Underwriters—To be determined

Inc.; Glore, Forgan & Co.; Merrill
Lynch, Pierce, Fenner
& Beane; Harriman
Ripley; Lehman Brothers; The First
Boston Corp. and
Smith, Barney & Co. (jointly). Pro¬
ceeds—To redeem all of its
outstanding $7,675,000 bonds
and to

Under-

holm &

•

Co.,

and rifle.

gun

50,000 shares ($100 par) preferred
stock.
Underwriters—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &

9,000 shares of capital
share.
Underwriters—

per

;
common.

—

due 1977,

N. Y.

notification)

stock

cents

•;

Y.) Gas & Electric
Corp.
May 26 filed $16,677,000 first
mortgage bonds, Series L,
and

purposes.

My-Fal Toys, Inc., Bronx,
Aug. 29 (letter of

South

•'

'/Martin &

will receive all net
proceeds.

•

Kaslo,

Tine, both of Seat*

Price —50

Aug. 22

;

Racing Association, Inc. (9/15)
July 29 filed 140,000 shares (no
par) common.
Under¬
writer—Bonner & Bonner,
Inc., New York. Price—$5.75
a share.
Proceeds—The shares are being sold
by stock¬
holders who

purchase warrants issued and
exercised, and 52,000 shares are re¬
issuance if certain loans

•

...

\ common.
offered to common
stockholders at $8.50
per unit on the basis of one share
for each five
shares
i held.
Underwriters
Clement A. Evans &
Co., Inc.;
Courts & Co.; The

Revere

are

Columbia

Ltd.,

working
^
//-• I
" " "v \"
Co., Savannah, Ga.
(letter of notification) 22,400 shares
($5 par)
To be

capital.;

184,823
shares of $1 cumulative
convertible preferred
($10 par>
and 277,231 shares
(50c par) common
stock, with Sterling
Grace & Co. as underwriters.
Company decided to issue
454,465 shares of common stock
only, which were to be
offered for
subscription to stockholders of record
Sept.
5, 1946, to the extent of one share for
each five held.
Issue not to be underwritten.

publicly

Wash.

per

Co.,

Aug. 13 filed 200,000 shares ($1 par)
writers—Elmer J. Edwards arid Van
tie,

Republic Pictures Corp.. New York
Registration originally filed July
31,1946, covered

as and if stock

issued

served

total

Mining

! mining equipment, development

share of preferred and one
share
used in organization of

one

Charleston

British
!

$105

Corp.

capital.

Slocan

Precision

Proceeds—To be

business.

Musicraft Records, Inc., New York
Aug. 15 filed 317,259 shares ($1 par)
capital stock. Un¬
derwriter—To be sold through brokers and
other agents.
the

sold

Y-)

Domestic

(letter of notification) $300,000 of
5%
sinking
convertible debentures and a
maximum of
66,666
shares of 40 cents par common for
conversion of de¬
bentures. Price—$95 : per debenture to be
offered to
; stockholders:
It is contemplated that after
Sept. 2 they
! will be offered to the
public at not mpre than
$100. No
underwriting. For additional working

Y.
Underwriter—East¬
man, Dillon & Co., New York. Price
by amendment.
Proceeds—To retire
outstanding bank loans.

consisting of

common.

(N.

Aug. 13

will

Creek

j fund

Morris Plan Corp. of
America, N.
|ifar. 31 filed $3,000,000 debentures.

Offering—100,000

stocks

Corp.

Silver

(no par) common. Underwriter
Vice-President and director of

Rolph,

Price—The

company.

,...

at $2.50 per

Martin

1y," '

Credit

Bottling Co. of Cleveland
(letter of notification) 149,700 shares
($1 par)
common
of which 39,140 shares will be
sold at $1.50
each upon exercise of warrants
originally offered by
Red Rock
Bottling Co. of Pittsburgh and Red Rock
Bottling Co. of Youngstown, both of which are
being
merged into the registrant. The
remaining 110,560 shares
are to be issued in
exchange for the outstanding .com¬
mon of the two
companies being merged with the issuer.
No underwriting. Proceeds from
the sale of
39,140 shares

—John
.

Corp., Albion, Mich.

convertible
($1 par) common.
Under¬
writer—Smith, Burris & Co., Chicago. Price—$25 a
pre¬
ferred share and $10 a common
share.
Proceeds—Pro¬
ceeds, together with funds to be provided
by a term bank
loan, will be used to discharge indebtedness

Feb. 3 filed 25,000 shares
($100 par) 6% cumulative pre¬
ferred and 25,000 shares

Sept. 30.

Proceeds-^

working capital.

preferred and 53,962 shares

Rock

working capitals

preferred not

issued
exchange will be offered publicly.
Price—For pub¬
offering to be supplied by amendment.
Service Caster & Truck

director oi
Proceeds—For explora¬

Refrigerated Cargoes, Inc., New York

purchase or
Bids—Expected bids will

facilities.

new

share.

exchange for outstanding class A
and B
Shares of new

April 10 filed 32,000 shares ($25 par) $1.40

Montreal,

development of mining property,

will be used for

bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; The First
jfiioston Corp.; Drexel & Co. Proceeds—For
construction of

Soden,

stocks.

To redeem old preferred and for

Aug. 22

Proceeds —^ Company will re¬
ceive proceeds from the sale of
preferred only and will

use

Red

preferred share

lic

surveys.

Co., and Shillinglaw,

$10

issued

Red Lake Mines, Ltd., Toronto, Can.
June 9 filed 460,000 shares of stock.
Underwriter—Mark
Daniels & Co., Toronto.
Price—25 cents a share.
Pro¬
ceeds—To finance diamond
drilling and land

July 25 filed 100,000 shares ($10 par) 5%% cumulative
convertible preferred and
200,000 shares ($1 par) common.

Raleigh

Candy

Underwriter—Robert
company.
Price—500

To be

Marache

Thursday, September 4,
1947
preferred

(10c par)

behalf of Clifford S.
Strike, President.

market.

CHRONICLE

Quebec Gold Rocks Exploration
Ltd., Montreal
Nov. 13, 1946, filed
100,000 shs. (500 par) capital stock.

Hartford, Conn.

(letter of notification)

common on

sold

(F. H.)

FINANCIAL

alternative plan instead. New
England has employed
Blyth & Co., Inc., and Kidder, Peabody & Co. to solicit
exchanges of prior lien stock of New Hampshire under
alternative plan.

Co., Inc., Baltimore, Md.
Aug. 13 (letter of notification) 1,400 shares ($100 par)
5% cumulative preferred. Price—$100 a share. No un¬
derwriting. For additional working capital.
McGraw

change its plan to sell stock competitively and

use

corporate purposes.

McCormick &

COMMERCIAL

the

It also

will sell
$1,250,000 of 4% subordinated
notes, due 1951, to Mutual
Life Insurance
Co., New York.
Underwriter—The First
Boston Corp., New
York.
Offering—New

preferred will

preferred. Underwriters—Stone &
Webster Secur¬
ities Corp., and
White, Weld & Co., New York. Price by
amendment. Proceeds—To finance
new construction and
repay $7,500,000

otoutstanding

Texas Co., New York
Aug. 14 filed an unspecified

$25)

notes.

number

(pat
shares). Un¬
Offering—Shares will

(maximum number,
2,248,&32

derwriters—No underwriting.

common

Volume 166" Number 4626

THE

COMMERCIAL

offered at below the market price for subscription to
stockholders. Price by Amendment Proceeds—1To be
added lo general funds for corporate purposes.
Electric Service Co.,

•

Fort Worth

not

exceed

Probable

•

American

3%%.

Proceeds

for

($25 par) 5%

convertible

Maxwell, Marshall & Co., Los Angeles.- Price by
Proceeds—For payment of $3,950,000 of
bank loan notes; purchase of two notes issued by a sub¬
sidiary, Textron Southern Inc. in the amount of $1000,000 each, and for working capital. Offering date
indefinite.
v
'■-> :•
'
and

amendment.

„■

Light Co.

Thomascolor Inc., Los Angeles

July 9 filed 1,000,000 shares ($5 par) class A common..
Underwriter—No underwriting.
Price—$10 a share.
Proceeds—To purchase production facilities and for

One group is led by The First
by Halsey, Stuart & Co. Inc., and one
by Harriman Ripley & Ccfc; Inc.
The 75,000 shares of
new preferred stock scheduled
by the company for sale
simultaneously with the bonds probably will attract com¬
petition from The First Boston Corp., and Harriman
one

Ripley & Co., Inc.

working capital.
V

Utilities & Specialty Corp.,

United

•

Boston

10 filed 75,000 shares ($10 par) 5% cumulative
convertible preferred.
Underwriter—Herrick, Waddell

July

Co., Inc., New York.
Price—$10 a share. The under¬
writers will receive a commission of $1.50 per share.
In
&

addition, they will be granted warrants to purchase 50,000 shares of the issuer's common at $5 a share.
Pro¬
ceeds—For additional working capital.

conversion

covers

112,000 shares of

common

reserved for

Underwriter—Carver

of the debentures.

Co., Inc., Boston.
Price—Debentures 98; common $3.75
per share.
Proceeds—For plant construction, purchase
of

equipment

and for working

capital.

Co.,

registration

South

Bend,

statement

for

Ind.
new

Moseley
& Co.; Glore, Forgan & Co., and Merrill
Lynch, Pierce,
Fenner & Beane.
Filing with SEC expected about the
middle of September.
Associated

Telephone

company

mission

that

Co.,

Ltd.

has advised California Utilities Com¬

intends

Probable

underwriter,

Paine,

Webber, Jackson

Curtis.

Central

Illinois

Public

Service

Mar. 31 filed 500,000 shares ($1 par) common.
Under¬
writer—Name to be filed by amendment. Price—50 cents
e share.
Proceeds—For general operating expenses.

competitively $7,000,000 30-year first mortgage

the SEC for authority

Langley & Co.
Corp. (jointly); Lehman Brothers;

White, Weld
Sept. 15.
•

$10,000,000 bond issue.

new

De¬

Probable bidders

Kidder, Peabody & Co., and
(jointly).
Bids expected about

Co.

National Tea Co.

v i

Oct. 1 stockholders will vote

preferred stock.
writers are:

Hemphill, Noyes & Co., and Merrill Lyh&h,

Pierce, Fenner & Beane.
Pacific

■

Telephone & Telegraph Co.

(10/21)
*
Aug. 26 California P. U. Commission authorized com¬
pany to sell $100,000,000 40-year debentures on a com¬
petitive basis.

Probable bidders:

Halsey, Stuart & Co. Inc.

East Coast

Amended

ing—Shares will be offered for subscription to Weber's

Public

stockholders. Certain shareholders have waived

reduce

bank

Proceeds—To retire preferred stock
loans.
Reported July 16 that the

present plans will be entirely changed.

July 30 (by amendment) 10,000 shares of common stock
(par $10) tb be sold by Middle West;Corp. The original
statement filed*May 21;-1946 covered 550,000 common
Shares.
".'.-V
•,t-' :■
■

used

due Oct. 21.

Providence

& Worcester RR.
(9/17)
purchase of $1,500,000 first mortgage
bonds, series A, due Oct. 1, 1967, will be received up
to noon (EDT) Sept. 17 at office of Walter A.
Edwards,
for

the

President, Room 491, South Station, Boston.
•

Texas

Eastern

Transmission

Aug. 22 at hearings before FPC

Corp.

company's applica¬
"Big Inch"
gas pipelines, President R. H.
Hargrove stated company plans issuance of about $120,000,000 first mortgage bonds and $32,000,000 stock. Prob¬
able underwriter, Dillon, Read & Co. Inc.
r •<
for

certificate

and

own

operate

Inch" natural

,nV

United States

plan

Electric

Co.

Government,

State, Municipal

SEC Aug. 28 by East Coast
provides among others for the sale
to underwriters of 15,000 shares (par $10) of Electric
common.
Former plan to sell 60,000 shares (all owned
by East Coast Public Service Co.) would be abandoned.
•

Wisconsin Power & Light Co., Madison, Wis.

proceeds will

Telephone & Tele¬
graph Co. and help meet plant construction expenditure^.
Registration with SEC expected about Sept. 20 with bids'

Corp.; Salomon Bros. & Hutzler,

Mar. 31 filed 108,763 shares ($5 par) common.
Under¬
writers—Blair & Co., Inc. and Wm. R. Staats Co. Offer¬

Morgan Stanley & Co.;

The

to repay advances from the American

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
Kidder, Peabody & Co., and Smith, Barney & Co. (joint¬
ly); Glore, Forgan & Co.; Lehman Brothers; The First

•

subscription rights.

changing and increasing,

issue is floated, probable under¬

new

include:

Boston

and

to issue"

Harriman Ripley & Co. and Lazard Freres & Co.
(jointly)
(bonds only); Glore, Forgan & Co. (bonds only); Halsey
Stuart & Co Inc. (bonds
only). Blyth & Co. and Gold¬
man, Sachs & Co. (jointly); Merrill Lynch, Pierce, Feaner & Beane
(bonds only);

Weber Showcase & Fixture Co., Inc.

common

and sell

and "Little

Co.

through the sale, possibly in November

cember, of

(9/15)

company asked

tion

Aug. 27 reported company plans to raise additional

Ltd., Toronto, Canada

Monoitgahela Power Co.

Bids

to apply within the next few
months for permission to sell additional preferred stock
and bonds to finance improvements and expansion pro¬
gram.

Probable

Aug. 11

•

money

Dufault Mines,

issue of approximately 200,000 shares ($10 par), common
stock is under preparation.
Underwriters—F. S.

Registration

statement became effective June 28.

Vauze

Investment

reported

Aug. 28

Utah Chemical & Carbon Co.
Dec. 20 filed $700,000 5% 15-year convertible debentures
due 1962, and 225,000 shares ($1 par) common. The state¬

ment also

Associates

Sept.

determined, he said.

in November.

Corp.,

sec¬

underwriter, A. G. Becker & Co.

and The First Boston

Appalachian Electric Power Co.

October

new

ond preferred stock to be voted
upon by the sharehold-*
have not yet been

Aug. 28 reported three investment banking groups plan
to enter competition for $28,500,000 of new bonds that
company expects to bring to market, possibly late in
Boston

deben¬

or a

bonds and 40,000 shares
($100 par) cumulative preferred
stock.
Probable bidders include W. C.

$10,000,000 preferred stock.
•

preferred stock

both, B. R. Armour, President, disclosed
The dividend rate, conversion
rights,

ers

bidders:

Power &

issue,

stockholders.

redemption price and other particulars of the

new

Aug. 26 reported Howard L. Aller, President, is nego¬
tiating with investment bankers for the early sale of

Underwriters—Blair & Co., Inc., New York,

second series of its first

pected in October.

Textron Inc., Providence, R. I.
28 filed 300,000 shares

ture

Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; Drexel & Co.; Lehman
Brothers, and Blyth & Co. Inc. (jointly); Harriman,
Ripley & Co.; Goldman, Sachs & Co.; Lazarus Freres
& Co., and Equitable Securities
Corp. "(jointly)." Ex¬

penditures.

preferred.

rate

(941)'"37
Ip addition to the issuance of shares of the new second
preferred stock, the corporation is considering the sale

Power Co.

construction.

Corp.; Halsey, Stuart & Co. Inc.;
Hemphill, Noyes; & Co., and Drexel & Co. (jointly);

Feb.

Alabama

interest

ly); The First Boston

& Co., and W. C. Langley & Co. (jointly);
Harriman, Ripley & Co., and Stone & Webster Securities
Corp. (jointly); White, Weld & Co., and Lazard Freres
& Co. (jointly).
Proceeds—To finance construction ex¬

CHRONICLE

Sept 2 company has applied to the SEC for permission
to sell competitively
$10,000,000 first mortgage bonds,

27 filed" $7,000,000 30-year first mortgage bonds.
Underwriting—To be determined by competitive bid¬
ding.
Probable bidders include: Blyth & Co., Inc.;
Smith, Barney & Co., and Kidder, Peabody & Co. (joint¬

Aug.

Glore, Forgan

FINANCIAL

Prospective Offerings

Texas

*!i

Blair

fr.

Corporate Securities

Co.

Heyden Chemical Corp.

Go.

INC.

NEW

informed stockholders of plans to
$6,000,000 and $10,000,000 through the sale
of preferred stock and debentures. A special meeting of
stockholders will be convened soon to authorize 60,000
shares of a new second preferred stock.
;
:
30 corporation

Aug.

and

filed with

Service

raise between

BOSTON

•

BUFFALO

YORK

•

CHICAGO

CLEVELAND

•

V""
i.><:
...
' ' \
't>' ."U
PHILADELPHIA •
PITTSBURGH •, ST. LOUIS

:,:j

FRANCISCO

SAN

•

in the various

An Ineffective
...

Apologist

(Continued from page 3)

business is

States, in cooperation with us, will ply you Chicago Transit Authority's of¬
fering of $105,000,000 in serial and
more exacting questionnaires.
term bonds, with the term loan
Mr. Truslow would have done well to guess less, adhere
rising to a premium of iy4 points,
the facts more, and give more of the pertinent facts to has reacted as a strong tonic for

with

particularly reprehensible "new point of view"
superimposed upon a group of non-members of the NASD
Who are required to conform to a code of practice which
they had no hand in making, all of this a palpable product
a

increasingly

the Junior Investment Bankers and Brokers.

econ¬

emphasis on "One World" and demo¬
Truslow failed to point out the many
ways in which the administration of the Securities Acts
of duress.
•
violate democratic principles and the American way of life
Mr. Truslow's ignoring of the correlated and, inter¬ and, hence, he lost a splendid opportunity.
related activities of the Securities and Exchange Commis¬
He became a special pleader on an occasion when he
sion and the National Association of Securities Dealers on
could have acquired substantial stature by being equal and
price fixing is yet another grievous fault.
responsive to this, his opportunity.
This has to do with the very life blood of the securities
position where their capital was
industry and we have always felt that the five percent yardsubstantially tied up by inabil¬
Stick, which the NASD seeks to apply to "spreads," was and
omy which is laying
cratic processes, Mr.

ity to

unforgivably vicious interpretation.
Mr.

Truslow

seems

exonerate

the

move

substantial portions

of such offerings.

Securities

Acts

other way

around. Although
slight back¬

and the Securities and

the

them from any responsibility

there had been some

securities business

ing

view, the present position in which the securities
a very large measure, to the
Unreasonable hardships which have been placed upon it by
over-regulation, unnecessary burdens, excessive costs of
.

Registration, and the persistent threats which

are being
culated by members of the Commission themselves to

cir¬
dog

Jhe dealers.

Impose
inflict

£lse

a
a

are

told '/be good boys" or else we will

"full disclosure rule", "be good boys" or we
"minimum

we, or

Passing of the Labor Day holi¬
day which normally writes finis
to the period of summer lethargy

will

capital requirement"; be good boys or

the NASD for

us, or

the local Attorneys

General

the

finds

erally in
of

mind

time

effect, they

offerings has

provided opportunity for cleaning
up of the bulk of such loose-ends.

our

investment
va

world

gen¬

much different frame
prevailed at this

than

year ago.

out to include

both
are

spree of
blossomed
host of "light¬
a

which
a

issues, bankers and

new

dealers

found

comparatively

there

recent

are

themselves in

clear.

smatterings of

instances

last

the

True
few

issue.
the

steadily,

rapid

York

New

But

these

left-overs

well spread and moving

The

offerings around, as for

example

but

weight"

shelves of
underwriters and dealers
the

Consequently

Telephone

Then, winding up

underwriting

subscription

the

quick

over-::

reported

for
the*
$15,000,000 of Libby, McNeill &;
Libby 2%% sinking fund de¬

bentures, offered at 100 Mj. and
the
quick sale of the P-O.OOO
shares

Ltd.,
the
as

Philip

Chicago
an

Morris & Co.
distribution

secondary

success

indication

taken

was

strong

In¬

vestment demand.

Facing The Barrier

Although institutional investors
little

the

this

securities

way

week

their interest indications

new

arouse
are

that

the situation will be different next

of new undertakings mid¬
week.
through the summer, the

recent slack in-fresh

industry finds itself is due, in

generally.

with

way

tor the future.

Along

found

Currently the situation is quite

Exchange Commission and to relieve
for the funk in which the
finds itself today. He is also an optimist

the market

are

slowly,

the trade reports.

distribution

the

Definitely

the calendar are

two substantial undertakings

which

will

up,

one

for com¬

petitive bidding and, very likely
for

ultimate

the other a

public offering, and

negotiated deal sched¬

uled for sale.

Detroit Edison Co. is expected *
to open

bids

Tuesday for its

$60,000,000 of new 35-year gen¬
and

eral

bonds

refunding
redeem

mortgage

outstanding

(Continued on page 39)

(942)

THE

COMMERCIAL &

FINANCIAL CHRONICLE

Thursday, September
4, i941

Indications of Current Business

Activity

The following statistical tabulations cover
production and other figures for the latest week
shown in first column are either for the week or month
ended on that date, or, in cases of

month available

quotations,

AMERICAN IRON
Icdlcated

steel

AND

STEEL

operations

Latest

Sept.

Equivalent to—
Steel

ingots and castings produced

AMERICAN PETROLEUM
Crude

runs

Gas oil

and

Residual

fuel

IVvoXUUcU

.Sept. 7

(bbls. of 42 gallons each).
(bbls.)

average

—

(bbls..).
(bbls.)

distillate
oil

fuel oil

output

(bbls.).

Aug.
.Aug.
Aug.
Aug.
Aug.
Aug.

UiJ,

Month

1,616,900

Ago

94.9

1,633,700

Latest

ALUMINUM

84.5

1,660,700

wuv^/uv

5,159,150
5,202,000

5,083,650

16,056,000

16,142,000
1,884,000
5,708,000
8,738,000

5,217,000

16,539,000
2,091,000

23
23

5,892,000
8,674,000

2,093,000

6,061,000
/

8,831,000

4,836,150
4,953,000
15,055,000
1,854,000
5,405,000

Aug. 23
Aug. 23

5,162,000

•

Total

ENGINEERING

All

19,981,000
53,118,000
54,978,000

84,983,000
18,808,000

51,685,000
54,000,000

85,812,000
16,807,000'
47,097,000
52,497,000

construction

Federal

(U.

BUREAU

906,305

682,753

686,019

919,928
694,618

(in 000 kwh.)

693,469

Electrolytic

AND

INDUSTRIAL)—DUN

Lead
Lead
Zinc

(St.

43,391,000

52,530,000
32,775,000

19,755,000

19,671,000
7,448,000

EDISON

1,194,000

133,200

11,750,000
1,060,000
*
129,100

11,800,000
1,117,000
123,600

Aug. 23

241

■>225

Aug. 30

4,939,801

4,952,876

Aug. 26
Aug. 26
Aug. 26

Govt.

—

Aug.
Aug.
.Aug.
Aug.
Aug.
Aug.

27
27

$37.92

$40.83

$19.17

27
27

t '

21.425c

80.000c"

80.000c
15.000c

15.000c

14.800c

14.800C

10.500c

Bonds

Group

122.49

121.95

117.00

122.86

121.88

117.20

118.20

121.88

120.02

121.88

120.22

116.80

109.79

116.80

109.79

110.15

112.37

112.19

118.40

112.56

118.40

114.66

118.60

120.43

118.80

120.63

121.04

2.79

2.56

2.65

2.64

2.64
2.81

3.18

3.16

3.05
2.73

2.62

—

Grains
—

Livestock

—Aug.
Aug.
Aug.
Aug.
L—Aug.
;
Aug.
Aug.
—...Aug.
Aug.
Aug.
Aug.
.Aug.

Fuels
——

Miscellaneous commodities
Textiles
Metals
«,

Building

—

materials

Chemical and drugs
Fertilizer materials

—„

Fertilizers
Farm

machinery

All groups combined

NATIONAL

PAPERBOARD

NEW

2.92

224.2

186.6

176.4

255.8

195.1-

256.4

258.2

323.3

344.4

2.60

182.4

250.7

182.4

180.1

163.4

163.6

216.2

167.7

217.0

159.1

220.7

159.2

230.4
149.7

--Aug.
.—.Aug.
Aug.
Aug.

PRICES—U.

DEPT.

I
'

and

metal

Building materials
Chemicals

and

149.7

130.8

149.8

130.8

135.5

129.6

135.5

135.0

127.1

207.1

127.1

206.8

206.7

23
23

149,464
177,712
100

Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
-Aug.
-Aug.
-Aug.
-Aug.

438,848

100

470,581

163,539
176,856
-

458,672

139.7

IIIII

141.2

allied

H
products—

153.5

152.7

181.4

150.6

181.4

172.3

182.0

172.3

167.1

182.3

140.1

114.1

23
23

147.0
179.1

177.8

173.6

139.7

138.6

111.0

108.9

146.7

178.9

INCORPORATIONS
INC.)—Month

193.7:

Member

154.2
145.2 :

143.6
174.8

carrying

121.4

Zinc

:it4;T

die

676,856,879
$69,365,088,855
140,762,829,432

650,858)923
$66,547,890,733
140,148,124,599

80.3%
"

Manufactured products

gure.

$79,132,265,907
141,407,058,263
95.8%,

77.3%

Govt.

103,724,970

206,010,690

col-

(DEPT.

pounds)
pounds)

PAINT

--'T

AND

DRUG

COM-

241,957,420

32,986

Cement—Month

Shipments

end

(at

628

756

36,772

31,839

1,079

966

1,227

140.4

142.5

136.6

13,389,000
15,326.000
•19,388,000

11,894,000

•

PRICE

MINES)—

June:

(bbls.)—
month) (bbls.)

used

30,855-

83,160

33,892

Z-_

(bbls.)
from-mills

Stocks

37,400

90,054

613

pounds)

356,437,489

;

REPORTER

209,679,122

84,604

;

15,951,000
18,179,000

17,180,000

81%

14,564.000

66%.

51,116

14,489,000-

51,007

73%

PRIMARY ALUMINUM
(BUREAU OF MINES)—
Month of
May:'
"
~
*
.'
:
-

Production"

148.1

•'

STEEL

•

(tons)

—

CASTINGS (DEPT.

96.7

Month of June:

113.7

Shipments- (short

24,850

COMMERCE)—

117.4

131.9

115.6

117.2

132.0

115.5

117.9

132.9

For

98.3

tons)

For

131.3

114.0

116.4

101.5

sale

(short

139,031

tons),

"""""

prWt5--—l-ZZZ
and-

an ,arm Products

market—previous

103,779

89.533

31,095

31,989

443,225

354,367

200,656
112,046

210,772
115,743

164,921
DETAILS

95,029

121,523'

STEEL

.Aug. 23

°Ser tton~farm
*No

140,874

103,888
35,143

88,608

;

producers' own use (short
tons)—_
Unfilled- orders for
sale
at
end of month
(short tons)

materials

.Semi-manufactured articles"

A§

.62,477,937.

445,475

IZ~"~~

Special groups-

♦d.T?!?

398,012,323

—r--"

(thousands

Finished

140.4
115.0

11,987

-$550)048,993
,

credit

other

402,198,852

free'

PORTLAND CEMENT
(BUREAU

—136.2

160.9

67,801,711

INDEX—1936-30
AVERAGE=100—Monthly
average—moq.th of August.

146,057

Zl68,120

8,922

$564,139,538

12-31-24--—100—
on

(thousands

Lead

862

9,041

ire

listed shares—
listed bonds

index,

87,591

1,628

debit

MERCE)— Month of June:Aluminum (thousands of
pounds)_1_J
Copper (thousands of
pounds)
Magnesium (thousands of

115.4

128.4

1,806

209,333,920

121.4

100

91,810

margin

net

NON-FERROUS CASTINGS

127.5

878,276

297,633
209.180

July

—

?
—
borrowings

lateral

*400,562
*307,124

97,818

borrowings

•™i3s!?es
Member

(DUN

124.5"
177.4 •:

1379,083
1279,459

EXCHANGE—

customers'

price

___

——

Production
139.5

-Aug. 23

211.8

OIL,
165,092
182,090

LABOR—1926=100:

products.

Housefurnishing goods
Miscellaneous commodities
Raw

216,1

trucks—
coaches—

-uw
balance
'-Market value of
Market value of

Capacity

Foods
Hides and leather
products.
Textile products
Fuel and
lighting materials.
Metal

158.4

225.8

u. s.

—

extended to
customers,.
on
hand and in banks

Stock

205.9^'

FROM

.....

customers'

^balances

-J

SALES

cars

STOCK

'""Total

342.3

$22,600,000,000
13,600,000,000

vehicles—

firms

"2Jbtal

230.1
212.8

...

at.

All commodities
Farm products

250.5

246.7

Aug. 29
WHOLESALE

270.2

248.2

OIL, PAINT AND DRUG REPORTER
PRICE
INDEX—1926-30 AVERAGE=100

BUSINESS

Member

191.6
U

$11,800,000,000
10,800,000,000

(AUTOMOBILE MANU¬

As Of July 31:

326.6

223.9

30
30

$1,952,159,000

of' motor

iFoRK

NEW

2.71

419.1

passenger

...

—

$1,856,682,000

ASSOCIATION)—Month

""accounts—

*417.2

224.5

268.9

$1,829,937,000

$22,700,000,000'
13,100,000,000
FACTORY

BRADSTREET,

ASSOCIATION:

Orders received
(tons)
Production (tons)

Percentage of activity
Unfilled orders (tons)

$1,343,402,000
323,861,000
284,896,000

—Aug. 30
fij
Aug. 30
Aug. 30

349,725,000
291,212,000

10,800,000,000

2.52

2.72

2.63

312.7

————

Farm products
Cotton :

$11,900,000,000

No.

ASSOCIATION—WHOLESALE COMMOD¬
——

$1,189,000,000

312,863,000
328,250,000

No^of^motor

GROUP—1935-89=109;

oils

$1,210,569,000

2.74

SGash
and

1.131*

_I—Z

—

Nqvf>f

Foods
Fats

July:

;

PLANTS IN U.

INDEX

FERTILIZER

INSUR-

Sales^u.

1.55

3.03

2.73
2.63

419.7

1.277

PURCHASESLIFE

MOTOR: VEHICLE

3.04

.Sept. 2

$1,208

1.138

Total

2.75

1.55

—Sept. 2

Industrials Group

39.7

1.294

Non-durable

2.64

2.81

3.04

—Ilieptl

—

1.51
2.80

3.18

PublicaUtUi11 es^ Group—--I

40.1

40.5

39.6

$1,220

TotatZnumber

1.51
2.80

2.81

40.1

40.5

Durable

118.00
112.37

Sept.

INDEX BY

—1

120.22

Sept. 2
Sept. 2

51.71

44.93

Inventories:

122.71

120.43

$48.46

July:

122.55

2.56

ITY

52.39

SALES (DEPT, OF
COMMERCE)—
Mohth of

117.00

NATIONAL

goods

—

Total

"■

37,022,918

WEEKLY
DEPT

goods

FACTURERS
July,;
■

15,185,008

$277,103,700
35,148,142

$48.91

MANUFACTURERS INVENTORIES

.«

COMMODITY

June 30

manufacturing

Industrial

8.250c

Sept. 2

—

MOODY'S

Ordinary

MOODY'S BOND YIELD DAILY
AVERAGES:

Average corporate

17,610,274

8.100c

10.500c

Sept. 2
Sept. 2

$310,024,600

goods

LIFE

8,250c

Sept. 2

Railroad

of June:

52.000c

.Sept.

17,546,119

45.08

Nondurable

16.250c

80.000c

127.9

$309,630,500
37,242,938

goods

Durable

■

14.150c

21.425c

15.000c

kJ,

231,527

Sept. 2

—

Govt.

manufacturing

$28.13

Sept. 2

omitted)

manufacturing

Durable

-Durable

2.70711c

$36.38

Sept. 2
Sept. 2

—

Baa

(000's

'"Nondurable goods

2.88239c

21.225c

LABOR—Month
Earnings—

)4,404,192

$37.35

31.225c

'•

consumers—

—

255

3.19141c

Bonds

Group
Public Utilities Group
Industrials Group

ultimate

$37.10

corporate

Number of ultimate
customers

QUOTATIONS):

——

Average

June

INSURANCE
INSTITUTE OF

(East St. Louis) at

sales

FACTORY EARNINGS AND
HOURS
AVERAGE ESTIMATE—U.

3.19141c
$37.83

INSTITUTE:

Revenues from ultimate
customers—month

12,154,000
1,273,000
120,400

MOODY'S BOND PRICES DAILY
AVERAGES:
U.

ELECTRIC

Nondurable goods*
Hourly Earnings—
—

1-56.1

324,137

All
59

92.1

128.4

*139.0

•••••*

Hours—
64

*181.9

—

213

4,805,740

110.5

92.4

*142.4

139.1

COTTON GINNINGS
(DEPT. OF
COMMERCE)—
Prior to
Aug. 16:
Running bales

108.5

*117.7'

91.7

52,786,000
27,119,000

11,950,000

179.3

143.0

$79,905,000

183.5
125.4
126.4
136.2
157.2

109.2

117.7

ice

*185".0

182.6

add

ANCE—Month

York)
York) at

Louis)

fuels

188^
200.5

109.2

66,216,000
34,618,000
25,840,000

copper—

(New

sweets—

$100,834,000

8,778,000

207.0

181.3

65,991,000

BRAD-

—

(New

205.0

122.1
134.0
7 147.8
147.1

—

171.5.- ^
178.9
■"

188.3

refinery at.
refinery at

Straits tin

and

$109,382,000

—

Domestic

Export

.L_
-

—

84,413,000

41,274,000
2,117,000

203.9
«-

185.7

All

Finished steel (per lb.)
Pig Iron (per gross ton)
Scrap steel (per gross ton)

vegetables

oil§_!

$136,943,000

Aug. 28

171.5

183.0

COMPOSITE PRICES:

(E.

INC

METAL PRICES

133.3
145.6

187.6*'
154.2

179.7

month

•

IRON AGE

Fuel, electricity-and ice
Gas
and
electricity

884,955

•

216.9

Rent

900,895

—

Fats* and

EDISON ELECTRIC INSTITUTE:

STREET,

and

Beverages

156.0

190.5
154.6.

.Aug. 23
.Aug. 23
-Aug. 23

——-—

(COMMERCIAL

products

Kilowatt-hour

STORE SALES-—FEDERAL
RESERVE
SYSTEM—1935-39 AVERAGE=100

FAILURES

157.1

products

Fruits

18,473,000
52,230,000
52)036*000

90,137

■

15:
j.

bakery

Eggs

DEPARTMENT

output

June

;

MINES):

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
Beehive coke (tons)

Electric

•;>v!

HousefurnishingS"

Aug.
..Aug.
Aug.
Aug.
Aug.

municipal

COAL OUTPUT

and

foods

quotation

21.225c.

.Aug.
.Aug.
.Aug.
.Aug.

167.7
149.5

148.3

147.4

136.6

FORGINGS (DEPT. OF
COMMERCE)—
of June:,
t
Shipments (short
tons)
Z

166.8

166.0

147.2

145.3

147.8

145.0

146.5

135.4

143.7

133.7

LARGE

—

Meats

86,039,000
*-

►106,681

MODER-

—4.

Cereals

Dairy
83)915,000

FOR

construction
and

—:

foods

Year
Ago

Month

91,845

Miscellaneous

construction

State

items

All

NEWS

Private
Public

pound's)—

FAMILIES

CITIES—1935-39=100—As

7,938,000

- -

INDEX

INCOME

Other

CONSTRUCTION,

RECORD:
;

(thousands

(DEPT.

June:

Clothing

(number of cars)
freight rec'd from connections (number of cars)

ENGINEERING

Sugar

Revenue freight loaded

CIVIL

ATE

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

PRODUCTS

shipments

Total

1,489,200

Month

WROUGHT

COMMERCE)—Month

CONSUMERS ffKICE
5,152,800

date):

Year

Ago

93.4

output \(bbls.)
M■■
23
Stocks at refineries, at bulk,
terminals, in transit and In pipe lines—
Finished and unfinished gasoline
(bbls.)
.Aug. 23
Kerosine (bbls.) at.Aug. 23
Gas oil and distillate fuel oil
(bbls.) at—-—.
.Aug. 23
Residual fuel oil (bbls.) at
.Aug. 23
iUvt

92.4

(net tons)

stills—daily average

Gasoline output
Kerosine output

Week

INSTITUTE:

oil output—daily

Crude

Week

INSTITUTE:

(percent of capacity)

(dates

of that

are as

144.9
111.3

For

123.6
121.2

Month

For

sale

111.0

(short
—^

(short

producers'

-rUnfilled

orders

tons)

own

for

tons)>

*Corrected

figure,

use

(short tons)

sale. at end

month,,

avail¬

;

638,535

IPreliminary figure.

not
"

able

662,579
iii

/ JP

THE

Number 4626

Volume 166

Our Reporter's

additions

essary

Report

capital.

(Continued from page 37)
That

the

day

situation with

Transmission Co. will
offer, through a banking group,

are

issues

sched¬
same

schedule which

avoided this conflict.
times

the

not

too

petitive

irked

by the piling

issues for bids

the

same

poses.

new

Quick Operation

pleased

decidedly

with

was

the

tion

out¬

30,000

preferred

cumulative

and

!vaco Chlorine Products Corp.
at

Priced

$98.50

and

$33

re-

•

widespread demand and under- j
writers

•

able

were

report

this

both

had

the later company's

Detroit

the

Edison's

and

should

fully

assure

of such

success

SEC

sale. will

.provide the company with funds
for new construction and for nec¬

Looks

and

de¬

now

operation,

Exchange

Commission, reportedly moved by
the

aloofness

less than

here

SEC

the

has

which

permit

forceful

NOTICES

J. I. Case

Company

COMPANY

$1.75 per share upon the out¬
Preferred Stock of this Company has
declared payable October 1, 1947, and a
dividend of 40c per share upon the
outstanding

$25 par

held August 25, 1947, a dividend of
one dollar ($1) per share was declared
on

the Cumulative Preferred Stock

Convertible 4% Series A of the Com*

payable November 1, 1947, to

pany,

of investors toward

"prime" utility preferred

the

PETERS,

business

Secretary.

dividend

will

paid

fifteen

NO.

20, 1947, to

and

Hecla

cents

ord

record

1947.

the

Checks

will

mailed

from

Boston,

Colony Trust Company,

Checks will be mailed.
C. A. San ford, Treasurer

Old

Mass.

J. H. ELLIOTT,
Mass., August 28, 1947

the

Secretary.

of
GUARANTY TRUST COMPANY OF NEW YORK

the

New York, September 3, 1947.
of Directors has this day declared
quarterly
dividend of
Three
Dollars
($3.)
per share on the Capital
Stock of this Com¬
pany for the quarter ending September 30, 1947,
payable on October 1, 1947 to stockholders of

of record

the close of business October 6,1947.

REYNOLDS

The Board

record

the

business

September

METALS
COMPANY

10,

1947.

Checks will be mailed.

MATTHEW

MURRAY, Secretary.

Reynolds Metals Building

Richmond

IIOMESTAKE

MINING

No.

' '•

•

has declared

($.50)

regular dividend of one dollar
thirty-seven and one-half cents
($1,375) a share on the outstanding
5V2% cumulative convertible pre¬

dividend

per

value Capital Stock, payable Sep¬
1947 to stockholders of record 3:00
o'clock P. M., September 8,
1947.
Checks will be mailed by Irving Trust Com¬
pany, Dividend Disbursing
Agent.
JOHN W. HAMILTON, Secretary.
August 19, 1947

#>CHEMICALS]^

1§f'3

PLASTICS

ferred stock has been declared for the

quarter ending September 30,

1947,
payable-October 1, 1947, to holders
of

record

Present positions available are as

Private
?

years

Secretary

CELANESE
180 Madison

Dividend

declared

Lawyer:

born
"

and

FRED W. I1AUTAU,

dividend of

will

Twenty-five cents (250 J**
October 15, 1947 on the

be paid

Stock of the Corporation, to stock¬
holders of record at the close of business Sep¬

Treasurer.

tember 30,

1947.
Joseph L. Martin, Treasurer

regular quarterly dividend for
quarter of $1.75 per share,
payable October 1, 1947 to holders of
record at the close of business Sep¬
tember 16, 1947.
the

current

Irving Trust

share, payable Sep¬
1947 to holders of record

cents

per

tember 30,
the close of business

Company

September

16, 1947.

One Wall Street,

New York

WARD BAKING COMPANY

R.O. GILBERT

August 28, 1947

Secretary
;

September 2, 1947

The Board of Directors has this

day declared
1

of 15

cents

$10.,

DIVIDENDS

has declared
the quarterly dividend of $1.37H «
share on Preferred Stock and a divi¬
dend of 15 cent# a share on the Com
mon
Stock both payable October 1,
1947 to holders of record September
12, 1&47.
T
The Foard cf Directors

quarterly dividend
share on the capi¬

per

tal stock of this

HELP WANTED

Company, par

payable October 1,1947, to

stockholders of record at the close

TRADER-SALESMAN

man

experienced

wants

basis,

Place,

L. T. MELLY,
Treasurer

September 8, 1947,

475 Fifth Avenue
New York

STEPHEN G. KENT, Secretary

17, N

complete facilities.

Financial

729,

trader-sales¬

of business

Salary and liberal

with clientele.

commission
Box

over-the-counter

established

Long
firm

Park

N. Y.

Chronicle,

around 45 years; a natural-

age

diplomat, impressive in speech and manner, persuasive
Convincing, well-educated, and forceful.

Cashier and Head Bookkeeper: 35 to 50 years of age,
thoroughly conversant with the bookkeeping requirements of
the Securities and Exchange Commission, and the traditional,
accepted methods prevailing in the leading Wall Street
underwriting,- investment banking, and Stock Exchange

houses.
*

The.

young,

Relations Man:

Dividend No. 0

September 3, 1947,

preferred.

1947

Common

August 28, 1947

the close of busi¬

COMMON STOCK

New York City and elsewhere; one able to prepare attractive
and compelling financial sales literature and advertisements
Public

1947, to stockholders of
September 10,

books will not close. Checks

September 16, 1947.

ness

Publicity Man: age anywhere from 35 to 50 years; must

Please

not

this advertisement unless you

in a position
conveniently to invest at least $1,000 in the stock of the
Company.
Address reply,

of business experience, pres¬
ent occupation and references, and, if possible, your photo¬
graph, all of which will be received and held as strictly confidenal, to
with

resume

Progressive, Box S-94, The Commercial
Chronicle, 25 Park Place, New York 8, N. Y.

SITUATION WANTED

Financial

The

SECURITY ANALYST
Experienced,

have the qualifications described above and are

CORPORATION,

will be mailed.

regular quarterly dividend for
the. current
the -current quarter of $1.18}4 per
$1.18 A
./share, payable October 1, 1947 to
share,
holders of record

appearance,

be adept and experienced in writing newspaper releases, and
have strong and influential contacts with financial editors in
.

FINANCIAL

1947. The transfer

-ecord at the close of business

1% SECOND PREFERRED STOCK

conversant with modern
practice of corporation law and the Law on Contracts, to
attend to all such legal matters as might need immediate
attention and action in the office, but at all times and under
every condition under the supervision and upon the advice
of Chief Counsel, who-has already been designated.
Corporation

■

payable October 1,

The

PREFERRED STOCK

cated, of dignified, impressive,- and attractive personality;
able, because of cultural background and the observance of
conduct, and deportment, skill¬
fully and diplomatically to handle men of large interests
,

Company.

Corporation

the Common .Stock

84.75 SERIES

FIRST

the highest form of etiquette^

THF, Boardthe Directors l dividends:
of following a i this day
declared

speller and grammarihn, possessing culture and re-

and affairs.

not

mailed

WicniTA River Oil

quarterly dividend of 50 cents per share in

cash has been

Receptionist: between 30 arid 45 years of age, well-edu¬

will

Common Stock

Avenue, New York 16, N. Y.

follows:

of pleasing and attractive- personal
ambitious and well-poised. ' '/•,/
; C

will

C.I.T. FINANCIAL CORPORATION

CORPORATION OF AMERICA

to the President: between 30 and 45

finement,

business

ALLYN DILLARD, Secretary

of age; must be an expert stenographer and typist, pro¬

ficient

books

Manhattan

Dated, August 28,

the

1947.

Checks

Bank

the

transfer

closed.

September 22,
The

DIVIDEND

The

$12.50 par
tember 19,

" " .''' .
In the organization of the working staff of the Corpora¬
tion
there are openings for top
individuals desirous of
obtaining high-class, congenial, well-paying, worthwhile
positions.
On the basic theory that greater interest incentive
and efficiency can be obtained by the process of giving the
entire working staff a proprietary interest in the business,
its future, and in the profits made by the Corporation, every-.
one connected with the operating staff will be required to
purchase at least $1,000 worth of its stock at par.

•'

■ ;;

COMPANY
865

No.

The Board of Directors
865
of
fifty cents

Open for

19, Virginia

PREFERRED

Secretary

TEXTILES

27, 1947.

New York, August

cents

Cumulative Preferred Stock 3.75%
Series B of the Company, payable No¬

incorporated wholesale invest¬
ment securities house is about to open fully-equipped offices
inthe Wall Street district, under forceful, highly experienced, aggressive and able leadership.
Founder has been
identified with the securities business; since 1901, "and is N
academically familiar with every phase thereof.
He is well
and favorably known in the "Street," where his connections
are
innumerable and of high order and importance. ; He
already has large and profitable financing business under

rec

the close of business on

September 8, 1947.

($0.15) per share

23, 1947, to holders
stock of the Calumet
Copper
Company
o!
business
Septembar 9,

Consolidated

payable September

stockholders of

September

the Preferred Stock has

been declared

the outstanding capital

195

quarterly dividend of $1.50 per

share
B.

DIVIDEND

Boston,

business October 6,1947.
At the same meeting a dividend

Rinety-three and three-fourths
($.9375) per share was declared

1947.

12,

CALUMET AVI) HECL4 CONSOLIDATED
COPPER COMPANY

meeting of the Board of Directors

record

No.

Dividend

Preferred

value Common Stock of this Company
declared payable October 1, 1947, to

been

WM.

important

Treasurer.

ELEVATOR

dividend of

September

Qualified Men and Women

••

OTIS

Racine, Wis., September 3, 1947.

DIVIDEND

way.

BONNYMAN,

NOTICES

DIVIDENDS

PREFERRED

A«f tut 15,1947

and

RICHARD ROLLINS

new

Co.

7, 1947

closed.

sales

DIVIDEND

not

THE ATLANTIC REFINING CO.

August

DIVIDEND No.

has declared a dividend
of 50 cents per share on
the Common Stock
of
the Company to stockholders of record *t
the close of business September 15, 1947, pay¬
able September 30,
1947.
Transfer books will

standing

WANTED

Unusual Positions

Pacific

Mexico,

STOCK

Company

(Incorporated)

DIVIDEND

vember 1,1947, to stockholders
HELP

at¬

fee

Mountain

New

Raton.

above

effort.

How¬

Things Over

Securities

and

Rocky

Louis,

COMMON

The

not

will

been inclined to go along though

issues

avoiding needless congestion.

The

financing.

yield

stockholders of record at the close of

DIVIDEND NOTICES

com¬

been

offering

velops, will await clearing

projected

naturally favor

has

involving $75,000,000

thus

the books in short order.

from

react

scheduled for next Tuesday.

oversubscription and closing of

Proceeds

not

Duquesne Light

ever,

spectively these shares attracted
i

bidding

Accordingly Detroit Edison and

30,000 shares of common of West-;

did

its

Bankers

situa¬

design.

holders

$3.75

stock

which

was

waived

has found it necessary to re¬

pany

day.

to their benefit.

of yesterday's public offer¬

come

ing

to realize that this

fraternity

has

undertakings.

And the issuers apparently came
A

petitive bidding to let a deal go
through. But more often the com¬

com¬

allowed to go through negotiated

distant past bankers have been-

occasion

tractive

financing is not suited to

channels to
Several

(943)

St.

The banking fraternity has con¬

had

day, to work out

of $100 preferred to provide for
repayment of construction loans
and for general corporate pur-

investment

to suggesting

tended right along that this type

which

uled for competitive bids the

$40,000,000 of first mortgage
pipeline bonds maturing in 30years along with 100,000 shares

The

eye

remedies.

issuers

new

utilities

Tennessee

Gas

potential

FINANCIAL CHRONICLE

working, stocks, is reported surveying the

growing marketwise seems to be
indicated by the decision of two

properties. *
next

•-

Changing Trends

bonds, bank loans and to pay for
The

its

■

COMMERCIAL

knowledge

underwriting procedure.
Good
tion

writer.
with

Seeks

connec¬

progressive

or¬

ganization

requiring

ices of

possessing sales,

man

analytical

and

serv¬

promotional

ability. Box M 94, Commer¬
cial

Financial

Chronicle,

25 Park Place, New York
N. Y.

Chesapeake and Ohio Railway Co.

A dividend for the three

months ending October 31,1947,

and one-half cents per share on 3lA%
Preferred Stock will be paid November 1,

of eighty-seven

Convertible

1947, to stockholders

of record at the close of business

October 8, 1947,
A dividend for the third quarter
cents

per

of 1947 of seventy-five

share on $25 par common

October 1, 1947, to

stock will be paid
the close of

stockholders of record at

business September 8,

1947.
close.

Transfer books will not

H. F. LOHMEYER, Secretary

and Treasurer

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Thursday, September

First of All, What Is It?
"The Marshall Plan may not be

11...
Behind-the-Scene Interpretations
from the Nation's

No plan

ever

"With

those

two

Holds

deficit

alternatives

Don't be influenced yet by inside information from the tipsters
UUU I
UC
UUlUtuov,u
j
(1) the Marshall Plan; (2) a special session of Congress; (3) tax
revision, and (4) 1948 wage demands.
All are in the exploratory
phase.
It's tenable to discuss them in terms of possibilities, unwise
to accept or form positive views which may shape your judgment and

writes
low interest is due to

adjustment,
and

The

Marshall

—idea of what it is to be.

month

along

pass

the President may

how

word

would tailor the plan. But that's

only

man's theory.

one

ber:

Remem¬

Congress will have the fi¬
of how many dollars

nal

word

dished

are

out

co-ops

this

ahare-our-wealth episode. That's

probers

prove

less
the

co-ops

are

interested

fact

western

big

enough

that

than

farm

hurt

are

sional candidates.

into
our

was

"It is true that

tacit agreement among western
Republicans
last
session
that

American dollars.

wouldn't be griddled un¬
the Presidential elec¬

coops

Now they're mad, and it's

safe

not

the

investigating
There is—and this is definite—a
committee will get high up or¬
growing worry in Congress over
ders to curb its prying.
whether the U. S. good neighbor
ohower of dollars may not cul¬
minate in a drought for all of us,
Here's another memo on inves¬
Europe included.
That is what
tigations. Last session Connecti¬
liasretarded the Marshall plan.
cut's
Republican
Senator
Ray
And more delay is in sight. You
Baldwin fought fiercely for an in¬
can be sure of (1) long congres¬
quiry into high prices, overcame
sional hearings, and (2) long con¬
opposition from Senator Taft, got
gressional debate before the Sec¬ the
probe
OK'd, ~ got
himself
retary of State learns how many
of

our

dollars Congress feels
abroad without

divvied

can

collapse at home. That's to be
important decision.

Right

special session of
Congress looks unlikely. Here's
now a

why. The President knows long
hearings will preface a vote.
He

knows

idle

Congress,

in session, would only pyramid

political mischief while its
mittees

studied

program.

have

the

hearings

reports

when

shape

recom¬

Congress
in January.
events

will

up.
*

•

definitely

rumor

stage. It's tied up
with Marshall plan
spending, with
the
on

impact

declining

industry and Federal

with

politics.

That

of factors

makes

wise

unsound.

and

appears

conclusion

combination

predictions
Here's

the

un¬

what

justified

only

the

exports
revenue,

moment;

there

Labor

economy.

talk

our

wage

boosts.

agree

demands

will

may

seek
of

Despite

labor's

howls

Taft-Hartley

given

1948

Congress

fair test.

it.

makers.

Act,

by
The

against

it's

Don't expect the

tinker

Congressman

squelched

but

less

law¬

committee

efficiency through adminis

trative rather than
legislative
tion.
You can look for a
the
■

over

agencies

dominate the

administering
4i

Now

noisy
whether Congress or

President is to

happy

re¬

price

maintenance

GOP

about

the law.

The

♦

the

inquiry

un-

know what

this

are

many

♦

Small

getting

Business

primed

industry

that

event, the com¬
mittee staff will go to work on
egislative recommendations cal¬
culated to

inspire the desired
in

argement

spokesmen
Chairman

facilities.

meet

Sept.

Wherry in

bout.

nary

utilities last

en-

Steel

with

prelimi¬

outstanding capital stock and
bonds slightly,
according to a
Federal Power Commission

alysis.

4»

98%

of
country.
from

now

such

apparent

the

Ad¬

reciprocal

They

prevent

this

Capital stock declined
to $5,939,-

Common stock declined
$3,879,314,000 to $3,774,and

preferred

$2,071,133,000

528,000

cut from $5,762,$5,745,344,000.

Want

the

authoritative

tale

why farmers raise pigs? The Ag¬
riculture Department has wasted
a lot of
time, a lot of manpower,
and 143

printed pages
ploration of
factors

hog

farmers

marketing."

"An

ex¬

year

this

trade

urns

that

claimed

war.

off

the

beaut

farmers raise hogs

money.
4s

favored

95%

They argued it would promote

small

finding of the National Federa¬

the

Presidential
authority
to
rates will be made sub¬
ject to congressional veto.

slash

Federal lenders aren't satisfied
that closing the RFC's

secondary

market
won't

for

guaranteed

discourage

The RFC market
June 30.

was

out

had

lions

real

into can't

worth

such

Federation

national
says

its

Inc.,

poll.

The

question¬
en¬

terprise men, that of those

re¬

plying 95%

were

for the Tobey

That's

the

eral

Man's

legislation.
why the

real

reasort

President last week

ousted

Fed¬

Security Administrator

Wat¬

Bookshelf

son

Miller, replaced him with
ndiana politician Oscar
Ewing.
4s

Administrator
competent,

How

Miller

was

easy-going

career

bureaucrat

who figured Con*
should pass the laws and
he should help administer
them.
gress

Attorney Ewing, formerly Vice-

Story

ers—The
tute

Avenue,

Tell Your Company's
Employees—Stockhold¬
Public—Research Insti¬

America,
New

Important

fact is that Ewing is close to
the

drug

industry,

lobby

for

probably

socialized

won't

17,

Madison

paper.

Chairman
of
the
Democratic
National Committee, knows
pol¬
itics and
politicians, has been
commissioned
by
the
White

enacted.

292

York

Old

Reorganization
Rails

Domestic & Foreign
Securities

medicine,

probably will engineer

New Issues

com¬

Taxwise, here's
in

state

and

individual

what happened

national
and

collections

corporate

m.S.Wien&Co.
'

come

last fiscal year

with

the

State

collections

compared

fiscal

period

ESTABLISHED 1919

Members N.
40

Security Dealers Ass'n

Exchange PL, N. Y.

corporation
levies increased
4.3%, Federal col
lections declined 13%.

HA. 2-8780

Teletype N. Y. 1-1397

Individua
income taxes mounted
7.3% in the
states, 3% in the nation.

Seaboard Fruit Co., Inc.
HAnover 2-0050

Teletype—NY 1-971
Firm

Trading Markets

FOREIGN SECURITIES

General Products Corp.

Susquehanna Mills

Empire Steel Corp.

All Issues

committed

paper

P.ARL MARKS & P.O. INC.
FOREIGN SECURITIES

now

being honored, that the
impact on lending volume
measured

the

naire went to 119,000 small

30, that such commitments

That's

Business,

lending

their agency to
buy about $80 mil¬

June

based

Small

Business

terminated

But RFC officials

they

loans

July loans continued

the June level.

point

such

businessmen.

tion

until commit-

international postwar stability.
isn't. That doesn't mean the
law will be allowed to
expire
June 30, does mean it will be
modified. There's a good chance

promise.

•

the

Get set for a resolute drive
by
the Administration next
session
for
national
health.

Bank holding
company legis¬
lation

City, Mo.
Aug. 28, 1947.

House after riding
through the
Senate last session.

didn't

stalled

measure

health law

astonishing conclu¬

Tobey

production

Fresh

(

yours,

Kansas

House to smash the
congression¬
al deadlock and
get a national

bureaucratic

the

nearly
" By
comparison, year
changes in the gold stock

at that time were
small.

motivating

their

C. W. BIGELOW.

stock

was

$5 biUion.

bank holding company
bill, 4%
against, and 1% undecided. The

$2,029,-

Volume of bonds out¬

standing

for

assayed.

utilities

Congress next session a
failure insofar as two
major claims of its authors can
would

an¬

embraced

$6,062,262,000

840,000.

sion

study

157,000.

press,

It's

The

and

electric

threatened shortage of

Very truly

reduced their

year

Reserve

uations in the amount of the
gold
it is pertinent to observe
that the above
change in. the law
reduced gold requirements

misers"—

Federal

stock,

"Marshall

world

reduced by law

Incidentally, in discussing fluc-

who would like to

adequacy of the gold
June, 1945, reserve re¬

were

avoid

gold.

knowledge.
us
"appearing before the

As to

from

Senate

decline.

are

share his

156,000

expand its capacity by 10 or 15%
Top steel men are expected to

officers

banks

Governor

If so, there

quirements

Plan" is?

from

Hartley

apt

volatile

special

much

created to watch the
law's opera¬
tions probably will be
content to
seek

debate

for

Miller-Tydings law

would

others

fore

they
shaped

the

policy in providing member

stock.

appear before the, world as
misers, we
will never be successful
advocates of freedom."—

proven

with

(2)

through state fair trade acts.

continuing rise in liv¬
ing costs, will be voiced before
existing contracts expire next

the

encourage

ammunition

the

authorizing

leadership, we can¬
stopping of com¬

Europe.

Privately-owned

consumer

want

Privately,

stop

Does

deliberately
strikes,

may

ministration's

the

year.

ings by regional subcommittees:
(1) some committee members

round

don't

the

"If

financing;

reserves
were
the reasons
for easy
money. The only
limiting
factor that threatened at
any time
was
the

the

deficit

The gold stock and
Federal Re¬
serve

bank

But it is also

Governor Harold E. Stassen.

program is to pass in review be¬

leaders

about

munism in
■

Now

Watch for two possible devel¬
opments during the price hear¬

may be revision but there can't
be much reduction of the overall

tax load

expect either freedom

it is to laugh!
depart for Europe on
a junket—at
taxpayers' expense
and be absent through
October ments are
exhausted and the buy¬
while
his
subcommittee
holds
ing of mortgages actually,'sus¬
public hearings on why prices
pended.
are high.
*
*
4s

recommend that the steel

revision remains

the

subcommittee.

Committee
*

Tax

re¬

for

how

ernment

he plans to

peal

the

and

convenes

may

conduct

during

mendations ready
That

prefer

committees

have

com¬

Marshall

would

their
cess,

the

named

guess

cannot

fundamental

contrary, money rates were
easy
despite deficit financing, t

purchase freedom with

communism with American dollars.
true that unless we
give aid and

after

implicit in it. Easy
money
have not been due to
gov¬

rates

-It is true that

opinion

error

economic shell and
ignore
responsibilities abroad.
\

cannot

SPECIALISTS

50 Broad Street

Referring to the article "Inter*
Possibilities" by
Sigurd
Wendin, in your issue of
Aug.

21, in

domestic economy here in Ameri¬
: But we cannot
pull ourselves

Harold E. Stassen

est Rates
R.

give
strong

Financial

Chronicle:

must

Commercial &

Every Le¬

"Chronicle"

adequacy

Editor,

weak

ca.

congres¬

There

can

primary consideration

Re¬

campaigners

"We all know that

The

co-ops

publican

tion.

want

have hurt small enterprise.

til

the catch.

undertaken by the House

Small Business Committee.

give

can

faint—and sound

any

even

exists

plan

Nobody

only.

name

you

evade the issue.

gionnaire and every citizen of
America should give his
support
to the Marshall Plan.

action.
♦

gold stock.

for its constant modification
and

Financing

Correspondent

before us, we can either
support
the Marshall Plan and then work
on

Easy Money {I

Rates Not Due to

perfect.
But what alternatives have we?
We have just two alternatives: the Marshall Plan
for Europe, or the Communist plan for
Europe.

And You

Capital

perfect.

4,1947

New York 4, N. Y.

AFFILIATE: CARL MARKS & CO. Inc.
CHICAGO

Hill, Thompson & Co., Ine.
Markets and Situations for Dealers

120

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : September 4, 1947, Vol. 166, No. 4626

FRASER