Full text of Commercial and Financial Chronicle : September 5, 1946, Vol. 164, No. 4522, Section 1

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AOMUBRARX

B(jS.

SEP

I94f

ESTABLISHED ,1839

Final Edition

In 2 Sections-Section

Beg. U. S. Pat. Office

Volume 164

Number 4522

New

Looking Ahead
Ten Years
Mr. Babson

sees

now

buy securities. Looks for two or
three years of good business and
then a slump unless Republicans

.7,:
'77: 7 77®$
Noting how management's rights under the Fourteenth Amendment )
have admittedly been abridged, and labor's picketing is designedly 7
coercing government's legislative branch, the author, an industrial
relations expert, declares State Courts have become our last de- ;
fense against "the New Despotism." States as crux the. conclusion i

victorious;

.in

prognostica¬

that picketing as incidental to strike for unlawful aims, is itself
unlawful. Attacks New Deal theory that "human rights are above

tion

property rights"

predicated
reliability

as an excuse

for undermining

constitutional

our

system; contending courts are still correctly uphelding the principle

of old market

that

Holds

rules."

protection of property rights is indispensable to enjoyment

of individual rights.

Retiring from the National Labor Relations Board after five
fears of another years as a member, Mr. Gerard D. Reilly recently declared, "I think
a n
■ employer ■.:v
y7
:7"
war
brings

e o p

world

govern¬

ment" carrying
with it elimi¬
Roger W. Babson

nation of pres¬

tremendous

should

have

the

right to
speak
pretty
fully to em¬
ployees about
the long-term

aid'

tures

with ten

effects of

V®

prosperity,
BABSON

usual

twenty years of great

pleases "

Forecasts

Business

follows:

Two

years

carrying

business,

good

three

are

about 1950, after which there

to
will

The

Tile Layers

Anderson

paui E.

Protective

associated
picketing and
freedom of speech; Mr. Reilly's
ion)

statement

admission

that

one

has denied equal
constitutional rights to employers.
Indeed, Mr. Reilly confirms Mr.
Tom Clark's recent statement:

"We
and

index of

For detailed

tents

see

there is

national

international

By J.

van

Vacuum Concrete

our

neutral

On June 30 price control was abolished in the United States. On
July 3 Canada raised its rate of exchange. The revaluation of the
Canadian dollar by almost 10%e>
compared with that of the U. S. A. Mark in the near future as a
was followed a few days later by
means to aid German economy to
Sweden, which lowered the rates cheaper raw materials.
It is not
of exchange by 14.3%, and con¬ probable that Canada acted with¬
sequently revalued the Krona by out Britain's advice; at least, Brit¬
16.3% to the old parity with the ain is the country which perhaps
dollar. This last step created great seems to be promoting revalua¬
surprise and it was generally ex¬ tion, i.e., revaluation by others, so
pected that Switzerland would that it will itself be able to
get
soon follow suit, while
revalua¬

the

Prospectus

U. S. AIRLINES,

'>».

.
i

'•

;

•.

;

Hirsch & Co.
Successors

Prospectus

New

Exchange
and other Exchanges

25 Broad St., New York 4, N. T.
HAnover

2-0600

Chicago

Teletype NT 1-210

Cleveland

London

Geneva (Representative)

IB1 FUNDAMENTAL
INVESTORS

on request

Established

Stock

York

PROSPECTUS

1927

64 Wall

managed, and
inflation
%

James
.

Bond

Albany
Dallas

Pittsburgh

Springfield

IND

different

the

well under control and
toward

trend

Buffalo
Syracuse
Washington, D. C.

Scranton

Wilkes-Barre

DEALERS

TELEPHONE-RECTOR 2-6300

seems

definite

stability has been

New Haven

Woonsocket

IN C.O • P OI AT I D

WALL STREET

NEW YORK

634 SO. SPRING ST
LOS ANGELES 14

Bonds
».'tt Vv7

-7>7

•

Members New York Stock Exchange
Members New York Curb Exchange

-30 Broad St.
TeL DIgby 4-7800

NATIONAL BANK

New York 4
Tele. NY 1-733

*SoIar Aircraft Company

MARKETS

INCORPORATED

Members N. Y.

Security Dealers Asfn.

45 Nassau Street
REctor 2-3600

Philadelphia

New York 5
Teletype N. 7.1-576

Telephone:

Enterprise 6015

Bond Department

THE CHASE

^Detroit Harvester Co. Com.

Conv.

-''7

THE CITY OF NEW YORK

New England

Preferred

Public Service Co.
'

■

90c Conv. Preferred

Tel.

State and

Acme Aluminum Alloys, Inc.

& C°

YORK 5, N.Y.

the

(Continued on page 1283)

Hardy & Co.

from

HUGH W. LONG and COMPANY
48

Appraisal of Values
available upon request

*Twin Coach Company
*

Gearhart & Company
14 WALL ST., NEW

In the United States

established.

7'■'

FINANCE

STOCK EXCHANGE

countries.

wealth of Nations inflation

Conv.1 Preferred

MEMBERS NEW YORK

countries of the British Common¬

and Dealers

SECONDARY

BULL, HOLDEN

such

Brokerage

for Banks, Brokers

CORPORATE

BROKERS

In Some Of the

Mooney

belligerent:
Hungary and
Greece, inflation has erased cur¬
rency and credit wealth. There is
no uniformity in the inflations in
countries

Service

PHILADELPHIA

Baltimore

BOND

has

been kept under
control.

FROM

AUTHORIZED

Street, New York S

BOSTON

MAY

OBTAINED

INVESTMENT SECURITIEa

Troy

credit

System has
been
well

Municipal

R. H. Johnson & Co.

HIRSCH, L1LIENTHAL & CO.
Members

INC.

Common Stock

request I

money

and

Aerovox Corp.*
Havana Litho. Co.*

coun¬

tries, such' as
S w itzerland,'

inflation
result of

world war II.
In some of the

GALEN

conspiracy to
people, to discredit our
institutions, and to bring about tion rumors were circulated even into a more favorable condition
disrespect for our government." in South America, Argentina said for competition.
"No one but a complete to be
Those who remember the
raising the value of the
crack-pot can be deluded by what
Peso.
In Britain there was also psychological
influence
of
the
we see going on today."
some talk of a rise in the German
fascination raised by the return
It is indeed a change for govern(Continued on page 1288)
(Continued on page 1276)
:
divide

con¬

1263.

page

know

less

trends and cyclical fluctuations by monetary policy/ and by
political aim of maintaining independence from other countries.
Doubts whether Bretton Woods agreements will end discriminatory
practices of 1930's, asserting American domestic economic sta¬
bility is indispensable for free trade and exchange.

bureaucracy

(Continued on page 1282)

an^.

One of the most disturbing elements to economic and price sta¬
bilization is currency and credit inflation.
Every country in the
world has had
had more or

ness

Supreme
Court
(Senn

MASS—The

Motors,

■

Dutch publicist holds revaluation how is not intended as an instru¬
ment of trade policy, bat is motivated by desire to influence busi¬

unnecessary

PARK,

By JAMES D. MOONEY >7
Willys-Overland

Financial Editor, "Agemeen Handelsblad," Amsterdam

un¬

ionization

X77/;7;/'7-'y 7;v 7*■■■'.'

17The^ Revaluation Outlook

military expendi¬
national his plant, corelative
with
barriers, whole complexion
of therightof the
things would change and a better union to say
standard of 7 living would ensue any thin g it

ent

;

President Rhd Chairman of the Board of

Industrialist, holding that all conditions for dangerous inflation are
with us, recounts progress of inflation in U. S. since 1933 and out- ;
lines efforts made to combat it. j Says these efforts have done little
more than to advertise fact inflation danger signals are flying.
Prof V poses reestablishment of a free gold market as. a fundamental
stabilization factor and recommends as means of bringing a bal¬
j
ance between demand and supply of consumers goods (1) greater
>
capital investment; (2) refunding of short-term government debt
7
into long-term bonds; (3) restoration of competition without re¬
'
straints on production; and (4) return to sound money policies.
7

catastrophic

®fl®7, ^

1 9 48 wit h

"on

Copy

To Economic Stabilization

:i|:;7777?';7By PAUL E. ANDERSON

time to

A Free Gold Market Essential

Picketing Versus the Rights of
Management and the Public

By ROGER W. BABSON

Price 60 Cents

York, N. Y., Thursday, September 5,1946

Prospectus

request

HART SMITH & CO.
Members

Reynolds & Co.

Members New York Stock Exchange
120

Broadway, New York 6, N. Y.
Telephone:
Bell

REctor 2-8600

Teletype NY 1-635

New York Security Dealers Assn.

52 WILLIAM

fiT., N. 7.

HAnover 2-0986

Bell Teletype NY 1-895

New York

Montreal

Toronto

IRA HAUPT & CO.
Members Neva York Stock Exchange
and other Principal Exchanges
111

Broadway

New York

REctor 2-3100

10 Post Office Sq.
Boston 9

Hancock 3750

Tele. NY 1-2708
•

Direct

Private

Wire to Boston

THE COMMERCIAL & FINANCIAL CHRONICLE

1262

Trading Markets in:

Inflation, Price Control and Taxation

N.Y. N. Hav. Pfd. & Com
Havana Lith. Pfd. &

Dr. Lutz,

Alabama Mills
Prospectus

action to be
to

SECURITIES CORP.
1920

Established
of

Ass'n

40 Exchange

Dealers Assn.
Inc.

BBIaXi

worrying about inflation and the
future of prices. The popular con¬

Securities Dealers,

HA 2-2778

PI., N.Y. 5

followed, and contends only sound proposal is to effect

goods by producing more goods at lower unit co sts. Decries
purposes and concludes it cannot succeed in curtailing inflation.
The people have done a lot of<S>
—11

KING & KING
Nat']

not

has

cern

TELETYPE NY 1-423

been

with the

real

British Seek

with

rather

Balances

its- end results

use

revaluation of dollar in relation
of taxation for other than fiscal

The

May, McEwen

purpos^

& Kaiser

this

that

situ¬

.not
.

solution
volves

:Tn

hopeless.

Bought—Sold—Quoted

Mitctell^Compatty
;:

Stock

Baltimore

Harley Lutz

Dr.

;

the

deed

of purchasing
The growth of bank de¬

Mississippi Shipping
Electric Ferries

ing

Vanderhoef & Robinson
Members New

York Curb Exchange,1

31 Nassau Street, New

York 5

significant because it shows that
(Continued on page 1284)

Telephone COrtlandt.7-4070

*Reprinted

NY 1-1548

Bell System Teletype

permission

with

August 1946 issue" of
Review" issued by the
Tax Foundation.
v",
from

the.

Stock

Common

••••

■'

Campbell
Stock

Common

Columbian

Rope

Guaranty Co.

Capital Stock

Pennsylvania Gas Co.
Stock\"

Common

Struthers

Wells

Bought—Sold—Quoted

stock

Common

H. G. BRUNS & CO.
20 Pine

Street, New York 5

Telephone: WHitehall 3-1223
Bell

Home Title

ftflC PONNELL & Co.
Members
New

York Stock Exchange

New York Curb Exchange

Teletype NY 1-1843
120

BROADWAY, NEW YORK
Tel. REctor 2-7815

the

writ¬

British

dele¬

gation headed
by Sir Wilfrid
Eadie1 will
have to return

.direction,

any

agreement

Stamped Preferreds

General Builders Supply
Common

Northern
;

Preferred

New

frid

Reeve?, Bros.,

;

d e d. Of
it

oftep

happens in
U c h xsitua'4

co&prdmise is patched,
up somehow in the 11th hour in
order to avoid having to admit la
deadlock.'
But- at
the moment
tions that a

there

The

seems

of such

indication

compromise.

J
between

difference

main

country, and the question of
between the two countries.

trade
The

Government, on the
other hand, .wants
to negotiate
each question separately and in¬
dependently of the'; other ques¬
tions.
As no agreement has been
reached on this point, it was not

Argentine

British

Government rejected

Bell

St., N.Y..5

Hanover 2-4850

;

CANADIAN UTILITIES

Goodbody & Co. \
Members N. Y, Stock Exchange and Other

capital' and enterprise lin
Argentine.Dur.iqg his brief

the

term of office,

himself

shown

Colonel Peron has

NEW YORK 6, N. Y.
Teletype NY 1-672

ticular than most Latin American

dictators—which is saying a great
The British Labor Govern¬

deal.

ment has

dividend

love for the British

foreign investments.

although 'he

And,

and seldom misses an

Manufacturer

having a crack at ihe bond¬
holders; he mobilized the support
of the Foreign Office in an effort
to secure fair treatment to Brit¬
ish
investors
in the Argentine,
This is more than any of his Con¬

Stock

matters

financial

from

■;

,,.

Government

British

The

principle in

this

from

part

Members New York Stock Exchange

St., New York 4, N. Y.

HAnover 2-4771

de¬

the

Argentine then other

of the

Tele. NY 1-2908

York

Security

Dealers

Private Wires to

Detroit Int'l Bridge

Taylorcraft Aviation

Fred F. French Investing
Common & Preferred.

■'■■if.

•*'' 'i'.X

Frank C. Masteison & Co.
Members

York Curb Exchange

New

WALL ST.

Teletype NY 1-1140

HAnover 2-9470

Assoc. Gas & Elec. Corp.
All

YORK 5

NEW

Issues

: <

Chicago, Mil., St. Paul & Pac.

5s/2000
'

"5s/J975
Minneapolis & St, Louis R. R.
,l

All Issues

Consolidated Film Ind.

Gude, Winmill & Co.
Members New York Stock Exchange

1 Wall St., New York

5, N.Y.

Teletype NY 1-955

DIgby 4-7060

Attractive for Retail

;

Macfadden
Publications
-

Common
Circular on Request

v;;

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

120 Broadway, N. Y. 5,

REctor 2-7630

N. Y.

Teletype NY 1-2361

Jefferson-Travis Corp.
Western Union Leased Line Stocks
International Ocean Telegraph C<x

Common

Telegraph Co.
Co.

Pacific & Atlantic

Southern >& Atlantic Tele.

BOUGHT—SOLD—QUOTED

Empire & Bay States Teleg.
bought

sold

„

Co.

quoted

J-Q-White 8 Company

Arnhold and S. Bleichroeder

INCORPORATED

Association

NEW YORK 5

STREET

37 WALL

Trinity Place, New York 6, N. Y.

Telephone HAnover 2-2400

(Va.)

Stock

WARNER & SWASEY

Troster, Currie & Summers
New

Common

,■)}

holders would also demand inter-

Trading Market

Member

Central States Elec.

re¬

Request

Simons, Unburn & Co.
25 Broad

and

jected the proposal of funding the
blocked
sterling balances on a
2j/2% basis, on the ground that
it would create a dangerous prece¬
dent.
It aims at funding the bal¬
ances
on
an
interest-free basis,

Currently selling around 3
■Prospectus

bondholders have fo fend for

Phonograph Records
Common

N. Y.

has done;

predecessors

Inc.

York 4,

rule the Foreign Office keeps

COMPANY

Pathe Industries,

New

Socialist

System Teletype NY 1-1919

opportunity

for

speculation—
Banks, Brokers & Dealers

Broadway WHitehall 4-8120

Bell

hostile

even

towards foreign interests in gen¬
eral and British interests in par-*

(Continued on page 1288)

For

]

York Curb Exchange

Members New

problems, as part of the.
problem lies largely in the
secure fair treatment for

case
.

Members New York Stock Exchange

this

and is afraid that if it should

Principal Exchanges

Telephone BArclay 7-0100

Keynote
Recordings, Inc.

-♦

Coi

Edward A. Purcell &
;

British

; :

Teletypes—NY 1-1126 & 1127

A low priced

;;

Towmotor

desire to

themselves.

CANADIAN BANKS

115 BROADWAY

•

The

why London insists
treating all financial and com¬

aloof

Canadian Securities Dep't.

37 Wall

2V2%' loan.

The reason

the

Assn.

proposal out of hand.

as a

"A" & Preferred

Y. Security Dealers

Vacuum Concrete

proposal suggesting

the two Governments is two-fold. capitalist or industrialist, whether
his capital is invested .at home or
Regarding the general line of ap¬
But Chancellor of the
proach, the British Government abroad.
wants to treat all the outstanding Exchequer Dalton fully realizes
questions as part of the same the importance of v safeguarding
problem, and wants to ^negotiate what is left over from the once
formidable "British
investments
an agreement embracing the fund¬
abroad.
He knows that in Ine
ing of blocked sterling balances,
the treatment of British invest¬ changed situation Britain could ill
ments in the Argentine railroads afford "to lose the invisible ex¬
ports represented by interest and
and other British capital in the

Railroad Employees Corp.

Members N.

;

The other dis+
the funding of

into

same

h a

CANADIAN MINES

^reeneoniGompanu

Textiles;vIiic«,
Laird

mercial

course

Einzif

r.
on

verted

empty-

Paul

Eadie

Buencjs

CANADIAN INDUSTRIALS

branch offices

Envelope^ Com^ ' j

that these balances should be con¬

Aires

We Maintain Active Markets in U. S, FUNDS for

England Co.

our

^Soya Corp.1; "*** T\ 1.
") U..

Kingdorh

sterling, balances.
The Argentina
Government submitted to Sir Wilf-

servative

Maine RR.

Boston &

Direct wires to

pro¬

from

"The Tax

Byrndun Corporation

" ap¬

thatthe

■■■

Preferred

Common

In¬

time^of
•

rapid

Common

pears

great increase

expansion of these items
really began during the 1930's,
but by 1940 it was only a good
running start.
In Table 1: the
changes since the-end of Decem¬
ber, 1940 are shown, p
Here we have a measure of the
increase of purchasing power in
its most liquid forms. The situ¬
ation at the end^of August 1945 is

make* any

progress.

posits and currency may be taken
as a measure of this increase. The

Rogers Peet>

NY 1-1557 !s

New Orleans, La.-Birmingharo, Ala.

witji

first step, we begin
the root of the trouble, which is
power.

St., Now York 4, N. Y.

HAnover 241700-

Argentine for the settlement of their financial and commer-i
*'"•••
dal
relations3
V.;V'W",v.':,}.:f.
do not appear possible to ;make any progress ir?

p r (
prope

Members New York Stock Exchange

remedy.
As

.* *, 'V

•1

and the

application

Exchange

the

T.e a

Argentine

LONDON, ENG.—The negotiations between the United

1-1227

Bell Teletype N. Y.

difficulty

Broadway, N. Y. 5
WOrth 2-4230

120

t h

hour compromise.

correct

understanding

;

i. '

.s'.-

Analysis,-.on .Request

25 Broad

posal for. funding blocked sterling balances on a 2^2% basis on j
grounds it would set dangerous precedent. British aim at fund- j
ing balances on interest free basis. < Sees U. K. and Argentine j
commercial and financial negotiations failing, barring eleventh

show

our

ation

EINZIG

Steiner, Rouse & Co.

Interest Free Basi

PAUL

London observer states British Government rejects

paper

—-—

'T'fv

in the form of

price changes.

Bought—Sold—Quoted
i

funding of Sterling

inflation, but

•

Members

Manufacturing. Co.

though maintaining inflationary situation is not hopeless and that by wise and efficient fiscal

action, together with more incentives to production and lower unit costs, itrend may be changed, points
out serious factors which are allowing the dollar "to crumble in the dust."
Analyzes various lines of

Higgins,lnc.*

Members N. Y. Security

Rockwell

: Professor of Public Finance, Princeton University

Miss. Valley Barge

-J

By HARLEY L. LUTZ*

Com*
'

*With

Thursday, September 5, 1946

Tele. NY 1-1815

Tel. HAnover 2-9300

Buffalo—Cleveland—Detroit—Pittsburgh—St. Louis
f

■«

INC.

30 Broad St.

ESTABLISHED 1890

Teletype 1-376-377-378

WHitehall 3-9200

New York 4
Teletype NY 1-515

1263
I4f

Banks at New Threshold

I ND E X

By WILLIAM HURD HILLYER

Articles and News
r

Picketing-

Cover

JvA Free Gold Market Essential to Economic Stabilization

•

—James

Mooney----.^.—Cover

Looking Ahead Ten Years—Roger Babson__i_-.--_—Cover
Inflation, Price Control and Taxation—Harley Lutz—.1262
British Seek Funding of Sterling Balances on Interest—.
n f

.»

■'r

AND

banking, notably
i declines in excess -reserves, government- deposits and government
lr r bond .foldings. Sees an unduly large volume of money in circulation
! ^.compared to
aggregate of bank -deposits and suggests banks endeavor to draw circulating currency into their* deposit accounts.
Holds service charges and other costs levied on depositors disf. .courage.;: increase in bank deposits and retard opening of new
accounts.
Avers banks can employ additional deposits profitably
and concludes "the depositor is the bankers best friend."

Galen--

The Revaluation Outlook—J. van

qOMPANY

Mr. Hillyer analyzes recent trends in commercial

Rights of Management and Public

vs.

^-Paul E. Anderson
■

Page

WITHOUT

RESERVATIONS
wilt consider the

•--we

purchase of

any obsolete and' apparently worth¬
bonds

less

and

stocks.

'f
"

"Free Basis—Paul Einzig-__——i.--_1262
Banks at New Threshold—'WilliamvHurd Hillyer-iiiti^--i.l263
The Market Outlook—G. Y. Billard-——-————1264

Commercial banks in the United States are facing decision; They
must elect to continue their present role of Government
paymasters

The Thinness of the Market—Leslie H. Bradshaw-n;J-r-L--1264

Socialized

Via Free

Credit

Tax

Government Capital ^and

1265

Exemption—Howard Friend

tions

— - -

•■•i.

—Herbert

^
t

Bratter:

1267

1269

•

———

Place* of Public Works in National Economy
—Walter F. Stettner—

„——*

assist

and

Governors of NYSE to Consider Permissive Incorporation
';

—

■.v.'yv

the

::Tbday:'^;*'.i—v;
~
~
1264 "
Public-Debt Controls Prices—Norman Leonard, Jr.__———1265 f

Keynesian Economics

Price Control Policy Crucial for Business

Presents and

Industry

Prospects

Future

effects

WiHiani H. Hillyer

rec¬

earnings
deposits; the banks as
situated are peculiarly sus-

Permissive

————.1273
Price Controi__1292
Exchange Tickers to Show Symbols for Bankrupt Firms .—1296 £
Silverware Ceilings Suspended

—

Regular Features

*»',••• at* *?« N* *+■**>

—1—

>.-r

<n»

CERTIFICATES

interest.

Book Cadillac
Schulte Real Estate Pfd.

J. GOLDWflTER & CO

Members New York Security Dealers Assn.

;

39 Broadway

New York 6, N.

HAnover 2-8970

Teletype NY 1-1203

These circumstances be-

(Continued

on page

1278)

Pep Boys
Bought—Sold—Quoted

Incorporation Today

New Security Issues Calendar m. m. m*

m. m.

I NSTA. Notes

m,++m* mm m* ~

*. m. ~

:i27i

—p.rv»^y*^.l27-l

i>i ■ **<—*ri

Observations^A^.Wilfredl.May«ZI'^r^^-^^^>;-^&^'65;
1274

Our Reporter on Governments
Our Reporter's

Report.m*******, r*-

iion

lost

seems

for permissive incorpora-

case

before the Eoard of Governors takes ih

even

Prospective -Security - OfferlngSw-—

£• Public ^Utility^Securities^*^^*£^^r-^i^^c^Sw^l26S. ^
•".'Railroad-

Prospectus

J. F.

up. I

is lost

TWX NY 1-2733-4-5

Private WIrest

Boston

Request

Reilly & Co., inc.
-

Cleveland:

Los Angeles

before the Board- of Governors of the
New York Stock Exchange takes the question up for considera¬
tion this afternoon. Hardly any member of the Exchange, it seems,
wants incorporation.
Most of the comment which the "Chronicle"
•has received from-the members
of the
various Stock Exchange
incorporation

Exchange PI., New1 York 5

HAnover 2-4785

| decide to turn it dowu or at least to table it indefinitely.
:\
I ' Judged5 from all the available evidence, the case'for permissive

m.~~ -m »• mrnymm*

Mutual Funds

Chicago

New York.

even

TRADING MARKETS

firms, for instance, has been against incorporation. A partner in one
-very large .firm which- favors -incorporation has admitted that incofpbiation hasn't the slightest chance of being adopted,

Thiokol Corp.
Axelson

v;The proponents of incorporation- shot their bolt,: as it were, at
of the campaign for incorporation and apparently have
run out Of arguments. Only a small minority, it is evident, favor
incorporation. The proposition before the- Board of Governors of
the Stock Exchange today is whether.*tor submit the question to
the general- membership for a vote and it would surprise no one if

Mfg. Co.

the-start

1 ReaL Estate ■ Securities*^t-^*»-wVtL«^v^J^^^rv*U^I274r v
Securities^ Salesman's Cornef-i-t^L—^r^1284.''i.
Securities Now in Registrationj.U...—1297 ;
.

Tomorrow's Markets (Walter Whyte Says)»—^«.'i.L1296.
♦Not available this week*

Laclede-Christy Clay

•

TITLE COMPANY

Proposition before Board is. whether io submit question to general (
4' membership for a vote and it would surprise no one if Board $hould ^

Dealer-Broker;Hivestment Recommendations--^..^———.1270 -

economic
knowledge

plight had its origin in
prewar inflationary policies,
of
1934-40, with accompanying
emergence of artificially low in¬
terest rates. When war financing
sextupled the national debt* lowinterest plans were the more rig¬
idly carried Out.
Banks were
thereupon loaded up. with Govrernment
securities; : return
on
lbans was lessened, both as to rate
a!nd
volume;
Federal
agencies
lioached on the banks' preserves;
the
depositor dwindled, in im¬
portance and became a payer of
qharges rather than a receiver of

] Judged from all available evidence,

;

1278";::
Broker-Dealer Personnel Items.^A'.a—-W.—^-.-.1275
Business Plan's1. Bookshelf... ^,4.
—1307.
Canadian Securities
Lw«.LrtA»
a.
1282
Bank and Insurance Stocks-—

and

common

—

-Articles Exempted or Suspended from OPA

fiscal

Governorsioi NYSE To Consider

Aircraft Manufacturing

-1, :• Despite

how

1-1268

—

Postwar Demand for Capital Surprisingly Large———1273
.

in
n

and swollen

}i Green Light for Foreign Development Loans.
-——_ _——1269
v Transition Accomplishments No Cause for Pride..^j--_—.1269
,* ? Forecasts Revival of Price Support for Farm Commodities..1271

r>-

inflation.

ord

r____-__.-_-_126T7'

"You and the Atom"—John M. Hancock—

Official of Fund and World Bank.———i—^ - bi - -1267-^5
»

Telephone: WHitehall 4-6551

the

'choice

neutrali
'

WALL STREET, NEW YORK

that their

brings with it
an opportuni¬
ty
to regain
prestige, safe¬
guard profits

1267

Report Progress in Implementing Economic Provisions

latter

^—1266

Year
The Job Ahead of Us—Ira Mosher

T h

count;

to
It

ihifts.

de¬

posit and dis¬

—Philip Murray -.i uuiv^
i-- i ^
1266$ William Green Discusses Labor During Present and Coming : / : >
_

ceptible

func¬
of

Obsolete Securities Dept.

*>-

the ir

•proper

Long Range View—Lewi s Schwellenbaoh
_ „_—_1268
^Labor's Achievements and Remaining Responsibilities
Labor:

•

fully re-

sume

—1266

Truman Lauds Labor's Peacetime Record

should decide to turn down the questions, or at least to

the. Board

Comment on i the question
"Chronicle'* during the last week follows:' ;
r,

reqeived

table it indefinitely.

the

Products

Tfi

Ert.W6

¥ *■'■■■■ i~T'ft

£ to. INC,

ntBion

■4

rubllshed Twice Weekly

sessions, $26.00

FINANCIAL CHRONICLE
-

ftegr. XT. 8. Patent Office*

COMPANY, Publishers
Park Place; New York 8, N. Y.
RBctoil 2-9570 to 9576

WILLIAM B. DANA
*

Publisher
-WILLIAM DANA SEIBEET, President
WILLIAM D: RIGGS, Business Manager ~

HERBERT D. SEIBERT, Editor &

Thnrsday, September 5, 1946

Thursday (general news and ad¬
vertising issue) and every Monday (com¬
Evefy

plete statistical- issue —• market quotation
records, corporation news, bank clearings,
State and. city news,, etc.) .
.
;
Other Offices: .135, S, La Salle St., Chi¬
cago 3,
111. (Telephone: State1 0613); 1
Drapers' Gardens, London,* E. C., England,
c/0 Edwards & Smith.
,
•
_

Bank

3, 1879;'

and

Quotation

$25.00 per year.
1
Monthly Earnings

: r

When permissive incorporation; was first suggested some, years

ago, I was for it. I thought then that, admitting large corporations
tb membership in the New York Stock Exchange would both bring
5
^
(Continued on page 1294): / • : «

Haytian Corporation
Punta Alegre Sugar

Eastern

'
Record—Monthly,

Record

are

interested in offerings of

U.S. Sugar

High Grade

;v:.(' •/"

Public Utility and

••

^Fidelity Electric Co.

Industrial

PREFERRED STOCKS

Susquehanna* Mills

Spencer. Trask & Co,

~~How Long?,
The

Mid-Year

issue
B

u.11

"Geared

- •. - ■

25 Broad Street. New York

"Prospectus oii request

to the

Teletype NY 1-5
York Stock Exchange

Telephone HAnover 2-4300
-

Members New

DUNNE & CO.
Members New York Security Dealers Assn.

•

our

t i,n

Class A Common Stock'

BULL MARKET

„

American Bantam Car

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

Sugar Assoc.

Lea Fabrics

Monthly,

—

;-;■

•

Note—On account of the fluctuations in

•

■

BROKER No. 21

year;

Members New York Security Dealers Assn.

170 Broadway
WOrth 2-0300
Bell System Teletype NY t-84

kOther Publications

;

Copyright 1946 by .William B. Dana
;.V'Company
'Reentered-as second-class matter Febru¬
ary 25, 1942, at the post office at New
Yhrk, N. Y., uiider the Act of March.

in Dominion of
Canada, $29.00 per* year; South and Central
America, Spain,- Mexico and Cuba,- $29.59
per" year;: Great
Britain,, , Continental
Europe fexcept Spain), Asia, Australia and
Africa, $31.00 per year.^
per

$25.00 per year.

, -

Subscription-' Rater-'".

Subscriptions in United).States and Pos¬

The COMMERCIAL and

I
;

25 Broad St., New York 4. N. Y.
WHitehall 3-0272—Teletype NY 1-956
Private

Wire

Boston

„

News"" discusses

this

TITLE COMPANY
L.

....

...

•

stocks

Bond & Mtge. Guar* Co.

terestingpanies^.

Lawyers Mortgage Co.

Prudence Co.

Broadway.

NEW YORK 4

DIgby 4-8640

Newburgor, Loeb & Co.
».-i

Stock Exchange "

WHilehall 4-6330

'Teletype* NY-<-1*2033«

Service, Inc.

Shoes

Incorporated

com¬
*

Capital Stock

National Radiator Co.

Public National Bank &

Bought-^Sold—Quoted

Trust Co.
*

Board oiTrade Bldg.

;

CHICAGO 4
Harrison-2075

lldnclbsE:®|lii^^

Members N.

Direct Wire Service

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

Prospectus

Trinity Place, New York 6, N. Y.

Telephone:
BOwling Green 9-7400

upon

request

C. E, Unterberg &

Hstablkhed 1914

—

Teletype CO 13®

'
-

'"Miles

Security Dealers Assri.

Teletype NY 1-C32, 831

Fuller Houses, Inc.

f. ^:

STRAUSS BROS.
Members

N. Y. Title & Mtge. Co.

N.Y. 5

in¬

Lawyers Title & Guar. Co.

Members New York

Sales &

.humber. of

13 Broad St.,

*Parks Aircraft

the

review^

CERTIFICATES

timely
and

question

Teletypesi
NY 1-375 & NY 1-27&1

Co.

Y. Security Dealers Ass'n

Broadway, New York 6, N.Y.
BOwling Green 9-3568

Telephone

Teletype NY 1-1636

<T,.rXj

■

■'
,

THE COMMERCIAL & FINANCIAL CHRONICLE

1264
1

EST. W26

By G. Y.

BILLARD, Partner,

Market analyst

■■■'' '

J. R. Williston &

Fears

Sizable offerings thrown on the

American Bantam Car
Com.

Pfd.

hension

over

tional

pos-

aris¬

tance

Gordon

re-

Gt. Amer. Industries

what

justified
in

Hartford-Empire Co.*

factors, in
have

Jessop Steel

such fears

extent

shall

brief survey

market,

Asphalt

outline

upon

ings for

July and August, how¬
about equal to earnings
reported for the first six months.
On estimated September results,
based
on
the
existing outlook,
earnings for the third quarter will
probably be I better than $1 per

below

seem

the

stock
-

(Continued

1291)

on page

thin markets which work to detriment of investors.

reforms

Mohawk Rubber*

rfian-

one

;

Investment Research Organization sees over-regulation

;

Old Pfd.

The Thinness of the Market

f Michigan Chemical
Minn. & Ontario Paper
Missouri Pac.

point,

ever, were

are

Lanova*
Mastic

the

76c in the first six months. Earn¬

of the various

far as they

bearing

that

ufacturing concern we have in
mind, supplying equipment for the
automobile industry, earned about

Billard

rising costs, as well as
fears pertaining to the technical
position of the market itself.

j- Elec. Refrac. & Alloys

probably some dis¬

away.

To illustrate the

sistance to

Douglas Shoe*

ventories, and
consumer

pro¬

such lows are

man¬
ufacturers' in¬

District Theatrest.

•

mainly from

came

present, ~ is probably
near the lows, but if prospective
earnings turn into another mirage,

panding

Diebold Inc.

v;;

conclusion

market,

ing from price
control,
ex¬

Old Pfd.

■/

market

obvious

disputes, fur¬
price dis¬

ther

tortions

Will the

of
(growing labor

Barcalo Mfg. Co.*
Cinecolor

making for
Hopeful that

responsible for lack of broad markets will be eliminated;

at least modified.

;

The sharp break in the stock market on Tuesday, Aug. 27, (the
Dow-Jones Industrial Stock Average declining almost 6 points)
f oil owing®

N.Y. New Hav. & Hart.

22, and

July
exempli¬

undesirable

fied

the

those

Pfd.

N. 0. Texas & Mexico

ket's

Purolator Prod.*

sult of

Textron Wrnts. & Pfd.
American Gas & Pow.
Cent States Elec., Com.

Derby Gas & Elec. <
New England P. S. Com.

Puget S'nd P; & L. Com.
Southeastern Corp.

the
Leslie

Bradshaw

Editor

Revenue
'the

the

ably to avert

;

Reserve

'Re¬

tailed

■

which the

the

use

credit

Southwest Natural Gas
Standard Gas Elec.

and

1934

initially

40%

margin.

been

drastic outside

amended

Oct. 15,

effective

Oct.

providing

Regulation
several

times.

t Prospectus Upon Request
*Bulletin

Circular

upon

Trifle

Patient, Mr. Jones.'"

on page

1280)

*Crowell-Collier Pub.

American Hardware

*Gen. Bids.

Buda Co.

Oxford Paper Com. & Pfd.
*United Printers & Pub. Com.

Bowser Com. & Pfd.

Supply Com. & Pfd.

Bought - Sold - Quoted t..f\
9ProsPectus available

request.

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

Broadway, New York

theory that government should resort to
deficit spending to promote employment.

Editor, Commercial and Financial Chronicle:

lishing the following:

105 Went Adams St., Chicago

Telephone BArclay 7-0100

Teletype NY 1-672

request

of the system are meant

operates

the effect

the way

profits,
resulting
from the amount of money going

prices,

into circulation
the

and- production

uses

from

this

all

sources,

and the
rates of operation of industry, the
for money-lending and land-owning

has
On

•.

money,

classes.

These factors

are

mathe¬

matical variables.

By the principles of the system
meant

are

functions

the

its

parts (working, investing, moneylending, and consuming classes,

profits, land, monetary system,
taxes; government, and self-inter¬
est) and the rights and obligations
of

the

classes

members

tions.
Mr.

its

economic

derived from their func¬

-'."V

transposing all the factors repre¬
senting saving to one member of f
the equation and all the other facto

tors

dure

profits,

should

system

(see

Econ¬

omics Is An Exact Science).

etc.,

EST.

*The FR

Members N. Y. Security Dealert Assn.

120 BROADWAY, N. Y. 5
REctor 2-0700

Buff. 6024

Citizens Utilities
U. S.

resort

Envelopes*

FIRST COLONY CORPORATION
Members

New

Thrifty Drug Stores

show

measures

ployment.

should

are

other '

It is not enough, how¬

that the

ever,

measures

satisfy

system.

cord

that there

which will promote em¬

the
To

proposed

mechanics

correct

they must also be in

with

the

principles

and

ac¬

the

system, the functions of its vari-

(Continued

page'1294)

Great American Indus.

Avon Allied Prod.

Virginia Dare Stores
Capital Records
Great American Industries

York

Security Dealers

Association

Wall Street

New York 5, N. Y.

Tel. HAnover 2-8080

Teletype NY 1-2425

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

Members N.
REctor

1908

Security Dealers Assn.

2-4500—120 Broadway
Bell System Teletype N. Y. 1-714

deficit

Di-Noc Co.

Prospectus Available

Bos. 2100

^Stratford Pen

^District Theatres

Direct Wires to Chicago and Phila.
ENTERPRISE PHONES

*Hungerford Plastics

^Princess Vogue Shops

N. T. 1-1286-1287-1288

Jlartf'd 6131

Corporation

*Dumont Electric

1926

spending to promote employment
only from the saving-investment
formula.
The principles of the
system are ignored completely. By
deficit spending is meant govern¬
ment expenditures for consumers'
goods and services originating in
credit or fiat money.
Such ex¬
penditures will promote employ¬
ment.
However, a knowledge of
the
mechanics
of
our
system

useful

economic

prices,

Keynesian ; economists - derive
proposal that the govern¬

mechanics

our

obtain the values of

their

ment

the

by deriving an equa¬
containing every price factor
entering into the functioning of

can

selling

equation.

would

tion

other, we arrive at I
saving-investment
ex-:
Using the same proce¬

terms of the other members of the

saving-investment
statement is simply an expression
of one of .the manifestations ,of
the system's mechanics and not an
explanation of its mechanics. We
have been able to explain these
Keynes'

the

Keynes'
pression.

CTIVE MARKETS

Ward & Co.

In view of the articles recently appearing in the "Commercial I
and Financial Chronicle" on John Maynard Keynes, I believe that ;
you will be interested in pub-®*

1934 the margin require-

(Continued

Art Metals Construction

115

for

Board, which issued de¬
requirements
known
as

Regulation

Internal

regulation), but all reflecting the
philosophy of the present Admin¬
istration
which, while well-in-

:f.U«•,

worse

purchase or carrying of secur¬
ities was delegated to the Federal

Department,
and
by
Exchange itself (prob¬

Stock

that

cure

Spec. Part.

Reader takes issue with

re¬

the

by
the

Board,

serve

Timing"

control

re¬

SEC,

Federal

extent

The restriction with

put into

cent years,

'Investment

Aspinook Corp.*

You'd

Our capitalist economic system
public is perhaps most familiar is
has two phases, its mechanics and
that on margin trading. Under the
us
principles.
By the mechanics
Securities Exchange Act of 1934,

a num¬

effect

the

Margins

ber of restric¬

Upson Corp.*
U. S. Air Conditioning

Alabama Mills*-

such

people

than the disease.

and

tion is the re¬

tions

Vacuum Concrete

many

condi¬

This

•

United Drill & Tool "B"

form

mar¬

present

by-products

vulnerability.

Taylor-Wharton* 11

Aug.

thinness

Richardson Co. ;;t|
Tenn. Products

Dp Wish

Keyxtesiaxi Economics

tentioned, has impaired a hitherto
free market and brought* about

Old

•

Moxie

*»*r

business situation, the
principal question is simply this—
promising earnings pros¬
pects for the third and fourth
quarters materialize?
If so, the

situa¬

.sibility

Chicago R. I. & Pac.

domestic

interna¬

tion, the

Automatic Instrument

Considering the present position
of the market with respect to the

able to appre¬
the

-.•

Fundamental Question

trace¬

were

Amer. Window Glass*

■

.*..<.**».

widest break during the past

and

sources

h; !

i«.%-M

fessional

Art Metal Const.

•

Co.

if present earnings prospects materialize stocks
in buying and not selling range.

are

■;

•.

»\

•

BUSINESS BUZZ

says

The stock market experienced its
week -since May 1940.
; ;

1»"

■
*

'Thursday, September 5, 1946

The Market Outlook
;:f

iT iff* "

AvUVHMhx

]■

,■

SIEGEL & CO.
39 Broadway,

N. Y. 6

DIgby 4-2370

Teletype NY 1-1942

Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

1265

\V '.f

Harris

Public Debt Controls Prices
*

Norman Leonard, Jr. of Yale University stresses opportunity of
individual to reduce bank-held debt and prevent higher prices.

•

Also calls

local governments to

-DALLAS,

•

forego postponable spending.;

The crucial importance of

"Yale

"New s"^

g r a m

World

pro-

doxical.

bit

reduce the1 federal debt?

rises

'Leonard:

new.

•

-1

Well, Mr. Mullins, the

of 700% in the

recent debt reductions have been

^demand de-

made possible by payments from
the
Treasury working
balance.

posits

the

This Treasury balance

j credit of the
*

U. S. Treasury
and of 100%

'in

Leonard

pointed

out

necessity

mercial

individuals

and

local

well

governments

their

spending, to
resulting
upward

state

The

text

Leonard's

Mr. Leonard, the fact
federal
expenditures
con-

Most

emphatically

still

United

lending businesses counting annual loan volumes in

multi-billions

year—and

billion

reaching their

dollar volume of

customers

\
•

loans to other governmental agen¬
As

nesses,

end

•

•■

1945

cal

■

May

fis-

In their

size

these

year,

the

"pros¬
lending busi¬

extended in varying

businesses

i; indicated

Howard

loan volume to outside cus¬
(other than governmental

; agencies)

nearly

dollars

lion

the

six

end

the subsidy of fiee

survey

credit

funds

World

cago,

the

War III!

'77/7\7i77-7''//--7'

•

Lake
&

Brown

German

Donnacona

(Continued

1308)

on page

P., Ltd.

Company

Ltd. of Can.

Paper Co., Ltd.

International Paper & Pr.,
Minnesota & Ontario
Price Bros. &

Ltd.

Paper Co.

Co., Ltd.

St. Lawrence Corp.,
St. Lawrence P. Mills

Ltd.

Co., Ltd.

HART SMITH & CO.
52 WILLIAM ST., N.

7;}

Y. 5

HAnover 2-098C

Bell Teletype NY 1-395

7 Toronto

Montreal

New York

;■■■.. Vr'1,^-:?w!7/4/.
Coming to the ; Fore 7
7

Problem

Paper Co., Ltd. r

Consol. Pap. Corp.,

Curb and Unlisted

Germany and deliver
an important policy speech highlights the status of Germany which,
while absent from the Paris "agenda" of discussion, is in the fore¬
front of all the diplomats' minds. Whether the "inside story" going

Securities

MICHAEL HEANEY,

^:'"Ai:

WALTER
*

Direct Private Wire Service yh

Mgr.

KANE, Asst. Mgr.

/■

'• V

•

Joseph McManus & Co.
New

Members

COAST-TO
New York

Sulphur

Pfd.

COAST

Chicago

York Curb Exchange *
Stock Exchange

New York 6

39 Broadway

Teletype NY 1-1610

Digby 4-3122
-

Chicago

•

St Louis

•

Kansas City

Los Angeles

Jonas &

fac¬

Naumburg

Lane Cotton
Standard

Mills

Fruit

Com.

governmental

Department,
National
Equality'' Association, Chi¬
111.
Since it is a summary,

statements

made

neces¬

are

S/S

*'•

LOS ANGELES

Preferred

Utah Southern Oil

•

Dravo
'v

2-9335'

Teletype NY 1-2630

Reynolds & Co.
Exchange

NY 1-635

Corp.*
CORP.

Common

Tele. NY 1-2500

Stock

REctor 2-8600

HAYTIAN

Bought
•

—

Sold

—

Quoted

Established
MEMBERS N.
63

Quotations Upon Request

CO.

Prospectus on request

FREDERIC K. HATCH & CO., INC.

Broadway, New York 4, N. Y.

Tel. WHitehali. 4-6430

York

Bell Teletype:

American Maize Prod. Co.

PETER BARKEN
32

New

Broadway, New York 5, N. Y.

120

Preferred

HAnover

,v.v

•Prospectae ,oq f request

Members

•/•'//'7

American Beverage

Street, New York 5

Telephone:

Baker Raulang

JAMES M. T00LAN & CO.

* ,

American Insulator

Equity Oil

Telephone

Preferred

Kinney Coastal Oil

KANSAS CITY

Plodger & Company, Inc.

San Nap Pak

•„

Conv. Preferred

^Universal Winding Co. Com.

Bell Tel.—NY-1-493

Expreso Aerco
•".V:

Carondelet Bldf.
'r

$2.40

Baum, Bernheimor Co.

Company

New Orleans 12, La.

vrV

^Raytheon Manufacturing Co.

Harrison 2075
Teletype CG 129

ST. LOUIS

Members New Orleans Stock Exchange

Bo. 9-4432

Products, Inc. Com. & "A"

CHICAGO 4

DIgby 4-8640
Teletype NY 1-832-834

•

Pfd.

T. J. FEIBLEMAN & CO.
41 Broad St.

*Air

Board of Trade Bldf.

Broadway

NEW YORK

Corp.

Whits &

New York 4, N. Y.

STRAUSS BROS.

Members New York Security Dealers Ass'n

agencies, published by the

67 Wall

Abitibi Pr. &

British Columbia P. &

Indications that Secretary Byrnes will visit

1280)

on page

Com.

the

sarily broad in character, and do
not
include
the
explanatory,
modifying and substantiating data.

■

Stocks and Bonds

;77/77'7;

The

subscribed

Research
Tax

Pulp & Paper

narrow

use

public

Jefferson

bil-

♦Summary chapter from
tual

pri¬

system.

country has no diplomatic rela¬
"blackball-ers," while his satellite

admittance tactics of furthering their own indi¬
policies, as in their increasing propaganda activities,
the nations in the Security Council are contradicting their basic func¬
tion of representing all the 51 UN member countries.
In any event neutrality during World War II (even if not con¬
versely"; considered an asset) should be discarded forthwith as
reason for refusal of admittance to any peace-preserving organization.
And ideological sympathy with a controlling Power must be dis¬
regarded. For without universality UN will be nothing more than an
unstable, Power-politicsing military Alliance—precipitating us into

tomers
"

wire

Galveston Houston

Friend

ing

inter-connected

coast-to-coast

vate

or¬

total of 25

outstand-

-an

originally

de¬

(Continued

to firms

successor

his

that

tions with the

vidual national

to all of the governmental
agencies and to one group of

lending

in the firm.

ganized in 1895, has

ury

The

from the United States Treas¬

year.

these

McLean partner

Harris, Upham & Co., which is

the Federal Government:}/

grees

the

1. Has

the

contributions

perity"

credit, including

cies, extended during the

agencies hav¬
ing assets of
nearly 19 billion dollars

Wilfred

•v--

mental

.Houston

the barrier. The delegate of the USSR,
Gromyko, based his three vetoes on the bald

undesirable, the USSR itself should be
Generalissimo Stalin's glowing telegram
to Hitler at the conclusion of their joint campaign against Poland in
1939: "The friendship of Germany and the Soviet Union is based on
blood which has been shed commonly, and has all the prospects of
being enduring and steadfast."

ern

office

pass

nations whom they deem as
barred. Witness, for example,

The Federal Government is the
operator of and partner in a net¬

I' 22 parent gov¬

Pondrom.

States;

Surely the Soviet is no less selfishly war-like than nations
traditionally ever have been. Secondly, on the ideological standard,
which the Russian satellites are "throwing into the teeth" of applicant

State Chamber of Commerce

some

Texas

criterion?

Noting that Federal Government operates a network of money lend¬
ing agencies, with annual loan volume in billions, Mr. Friend main¬
tains that this free use of
capital, together with subsidy provided by j
taxation exemption of private
lending agencies, is adding to burden
of Federal budget. Says
government transfers "good risk" agri- ;lcultural credit business to
cooperatives, while retaining the "bad
risks," thus adding further to costs of existing socialized credit.
Holds tax exemption of private credit
agencies causes loss of j
$100 millions annually in taxes.

/through

States

By HOWARD FRIEND*

under the management of Charles

In the first

and

Capital and Tax Exemption |

fiscal

ond

that the "pariah" nations are not "peace-loving

•

Socialized Credit Via Fiee Govt

of dollars and

Sam

The firm is also establishing a sec¬

countries elaborated their objections into charges

investment

Mullins:

work of money

;

place, this so-called peace-loving standard has been,
still, fraught with absurd contradiction.
On the one hand
who, obviously, could be more peace-loving than the neutrals?
Yet
Savings Bonds. The obligations from the Charter's incubus onward, neutrals like Switzerland and Eire
have nevertheless been frowned on by the Soviet. On the other hand,
(Continued on page 1293)
how does the Russian blackballer himself, with his unceasing and ram¬
pant aggressions, even qualify as a member in good standing, under this

in¬

Research Director, Indiana

Savings

The wisest and most patriotic

no.

terview follows:

that

Building under the

the

excuse

Leonard:

Mr.

can

subservient

op¬

the Mer¬

vetoes of Great Britain and the
and
Portugal,
Ireland
and
Trans-Jordan by Russia.
Only Sweden, Iceland
and Afghanistan were deemed lily-white enough

Bonds?

J prices^v;^';?^

Bank

offices

United

countries

Up-

Exchange, have

branch office in

cantile

'■/•

•

;

turned down: Albania and Outer Mon¬

were

golia

M.
mean

Thus, of eight pending applications, last week
five

com¬

purchasing

stop

now

the

pressure

by the
1

Mullins: Does that

curtail

minimize

debt owned

banks.

;

Stock.

ened

them.

many

was

Alliance

Grand

national

N. H. Leonard, Jr.

for

the

;

continuing absurd actions of the Security Council toward
candidacies for UN admission are akin to the-obsolete mem¬
bership committee log-rolling and other political
shenanigans of our decadent "blue-blooded"< sor
rial clubs.
In lieu of exerting every effort to
build up an all-inclusive world organization, some
leading Powers are., indiscriminately using' the
blackball technique to weld the new league into

large as was believed
necessary in time of peace. Dur¬
ing the war it reached a very high
level; it is now being reduced by
payments on that portion of the

deposits,

Mr.

times

member

bank

York

True

direction

wartime

The

para¬

the

government's exf
are still greater than its
income, how have we been able

August
Citing the

18.

sound

Organization

makes

revenue-

penses

station

WTIC
f

exceed

headline

that

o v e r

p' radio

Policy Obstructing

tir.ue

Interprets the

UN Admission

TEX.—Harris,

ham & Co., members of the New

By A. WILFRED MAY:

the bank-held public debt was stressed
by Norman Leonard, Jr., economics instructor at Yale University,
<••'

Upbam Branch

■J,

SECURITY

Wall Street. New York S, N

1888

DEALERS

FARR &
Members
New
New

ASSOCIATION

Bell Teletype NY 1-897

120

York
York

New

York Stock

Curb Exch.

Exchange i
Member

Assoc.

Coffee A Sugar Exchange/

WALL

ST.,

NEW

YORK

TEL. HANOVER 2-9612.

THE COMMERCIAL & FINANCIAL CHRONICLE

1266

j ATI Head Discuses Labor

Tiumait Lauds Labor's Peacetime Record
President
In

statement

labor's gains'and

sion has been

Labor: Long

country."

SCHWELLENBACH*

•f-';'-: Secretary of Labor

that

•

the

Says Admimsfration determined after termination of war to return |
American system of free collective bargaining.
Sees need for
both management and labor to respect rights of each other at ]
bargaining table and to wield power sparingly.
Tonight, on the eve of Labor Day, I appreciate the chance Colum¬

ments belongs
to the workers

of the nation.

the

President Truman

further in¬
Com¬
of the President's state¬
issued by the White

its economic status.
as

House under date

and

of Aug. 31, and

that

night in
August a year
the

when

an-

nouncement

Japanese

sur¬

follows:

render; In ad¬

•

;

of great

This Labor Day is one

came

dition

the

importance. We can look into the j o y which
with confidence, but naturally re¬
not with tranquillity.
sulted from that event, there was
We still have a big job to do, a
general feeling that the end of
and a long way to go, to assure the the
war
in
its fighting phase
domestic prosperity and interna¬ would end the serious aud diffi¬

future today

understanding

utilize

must

necessary

them

to cult problems which the

our

experience,

are

was

that

conserve

and

war pro¬

But duced. Looking back after

ting

we know
impression.
We which held us together

the

done goes to

credit

the

for

job

the workers of this
of states and free

unidn
people.

great

;

Labor Day

for labor

day

the accomplish¬
of
working
men
and
and to re-state the aims

review

ments
women,

and

is a day set aside
by Act of Congress; a

ambitions

and

needs

all

those who work with their hands

but

the domestic

back*

Looking

war's

end

believe

must be more

our

curred since.

hensible

one.

one

that

now

that

incompre¬

seems

the

could

anyone

transition

from

the economy of war to an econ¬
omy

tions

could

peace

made without

and

have

been

difficulties] distrac¬

disputes. .Had. it been

otherwise, it could only have been

and minds;

achieved through the desertion of
Record Peacetime Output

Since last Labor Day these men
and women have brought produc¬

our

American

freedom

and

system of democracy.

our

Yesterday^ news services car¬
peace-time highs. ried the story that the problem
of reconversion had been com¬
has
produced
a
flood of goods to meet the needs pleted.
Actually, Americans are
of the people who did without producing more goods and ser¬
vices today than we have ever
many essentials and most com¬
in
peacetime before.
forts during the war years. These produced
During the second quarter of this
consumers have upheld price and
rent controls during the difficult year we produced at a rate 17%.
tion

Their

new

work

post-war

period

inflationary

and at the same time,
industrial and farm arid home

pressure,
as

workers,
fheir

they

stand

have

supported
with record produc¬

tion. ^

As
we

nation of

working people,

maintain and increase the
large production and nearly full
can

(Continued

on page

1291)

excess

continue

of
at

that of 1941. .If we
present rate, the

our

third quarter will bring us within
5% of the all-time peak which
was
attained
during
the war.
There are ten million

people

*A radio address by Secretary
Schwellenbach over the Columbia

Broadcasting System
ning of Aug. 31, 1946.

little

been accomplished

than a year.

during

accomplished

been

while

They

for

you

strikes

the

about

curred

talk

want

that

oc¬

were, mo^e

make

the

1947

tion and full

year

essentials to
ous
-'

On this La¬

the

eve¬

who went out

high
last

was

not as

the end of the

was at

world
but

detours

and

difficulties
ered

William

the

rocky

Green

road

[

back to peace and prosperity and

chart

the

progress

we ;

achieved,
a

that;

that there are in existence

still too much with us,

are

cannot

ican boys are still stationed abroad
to k^n the peace so dearly won.

after the fighting

year

(Continued

1295)

on page

Remaining Responsibilities
By PHILIP MURRAY*

♦.*

President, CIO

CIO Chief, in Labor Day address, bails achievement of individual
liberties by all classes in America.
Declares labor has enriched

tfcday

social progress, ended

exploitation of women and children^ reduced
working hours, and advanced security for the handicapped, aged,*.
and underprivileged. Declares labor's struggle must go on, parj
ticularly against Big Business' alleged attack on living standards.

;

■

Most of those

labor unions.

contracts

year's duration.
That means that almost 1,000 of
them expire every week.
They
have to be renegotiated just like
any other
contract. During the
war
the government itself very
largely took over the task of de¬
termining the terms of such con¬
tracts. After the war had ended a
are

decision

had

whether

to
not

be
the

made

government

should continue that policy or re¬
turn

American

the

system of
free collective bargaining. It was
a hard decision to make.
It would
to

have

been

much

easier

have

continued compulsion during

peacetime. Your government knew
that there would be many dis¬
putes and many strikes. The at¬
mosphere was ripe for them. Dur¬
ing the war everyone worked
long hours and at high speed.
Everyone
wanted
a
vacation.
Much more important than that
was the fear complex which in¬
vaded every segment of our pop¬
ulation.

Workers

were

fearful

they would lose their jobs

spite of its name, Labor Day, this day has become accepted
holiday and a day of rejoicing for all of the people. This day

all

our

people

now

farmers,

ute

teachers, busi¬

Washington

United States where not too many
ago a trade" union was re¬
garded as a sinister threat and
organization represented to work¬
ers
a
still unfulfilled yearning.
There are places in these free
United States where, within my
very vivid memory, the ordinary
elementary civil riehts of free
Americans were ruthlessly sup¬
pressed.
There are places where

cele¬

years

brating.
<

in the

labor

move¬

Lab

ment

o r

Day, of course,
has

particu¬

and

lar

spe¬

signifi¬
cance.
The
cial

Philip Murray

of k

observance

men

Day itself came about as
the result of the struggles and the
Labor

of,organized labor. The
struggle to set aside an offi¬
cial day as a tribute to labor has
been part of the struggle of the
advances

very

worker

American

exercise

democratic rights, to improve

his

the

community

through

organization.

over

ing

the

forts
the

momentary

advance

met

were

with

the
conspiracies of company
spies and provocateurs and whole-*
sale evictions.
The right to speak
lash

the

injunction,

unsavory

freely, to assemble peaceably, to
picket, to distribute leaflets, to
(Continued

;

Philippine

on page

1294)

of America

Domestic

Shirt Shop

Present Price 4

Montague Rod & Reel

CIRCULAR ON REQUEST

CO., Inc.

Members N. Y, Security Dealers Ass'n

6, N. Y.
NY 1-1026

Mining Issues

believe
are

that

of this
lower level

the

selling at

than the shares of any other fompany

MAHER& HULSEBOSCH

H. D. KNOX & CO.

Brokers
.

Broadway, N. T. 4
Tel. DIgby 4-1388

company

Soya Corporation

Canadian

N. Y. & Rich. Gas
National

speech by Mr. MurSept. 2,

ABC network,

1946'.

had to meet iri fear and ter¬

in the still of the

night, await¬
invasion of
armed sheriffs and their deputies
or
of blood r thirsty company
police.
There are many places in the
United States wh.ere labor's ef¬
ror

Properties

National Press Bldg.

Annually 1939-1945
Approximate Market 21 Vz-22l/2

likewise

Labor

important

—

*Labor Day

labor.

worth

rav

American Vitrified Products

proud that a day is
officially set aside as a trib¬

occasion, well

labor

$1.75
Annually 1939-1945

proud that through its struggles
popular liberty has been extended.
There are places in these free

nessmen

lot and the lot of all of the mem¬

Products

—

Labor

—

worker s,

bers-

Tennessee

democratic7 heritage, erected bulwark against tyranny, advanced

our

sand contracts between employers
and

Paid $1.50

rest of the

Labor's Achievements and

It is
understand

you

in the United States over 50 thou¬

DELAWARE RAYON "CLASS A"

BArday 7-0570

sound and prosper¬

Hundreds of thousands of Amer¬

have

Within

employment, the two
a

have encount¬

from such domparison.

important,

NEW BEDFORD RAYON "CLASS A"

111 BROADWAY, NEW YORK

and

escape them nor
dodge our responsibility for con¬
tributing to their solution.
This year the American peo¬
ple gave generously in time of
scarcity to save the people of
Europe and Asia from starvation.

the

Richmond Cedar Works

F. H. KOLLER &

way

The troubles of the

forget for the

little value would

But

war

come

strike

LOOKING FOR INCOME>

The
easier

economy.

bor Day let us
moment

should

numerous

(Continued on page 1293)

Approximate Market 21

mem¬

rapid from now on.
The
big reward ahead is full produc¬

fulfillment.

during last fall and winter.

and
they involved more people than at
any time in our history. I do not
attempt to minimize the serious¬

that

Paid

to its

year's ness of the difficulties we con¬
how false fronted. I could cite you figures
The unity to show that, considering
the
in combat¬ number of people employed work¬
but disap¬ ing under management-labor con¬
had been tracts, the percentage of those

dptimisiri at the
than by what has oc¬

surprised^by

message

foreign foe all
them.
peared when the foe
The largest part of reconver¬ vanquished.
This was true not
sion has been accomplished, and only on the international scene,

much

of the American

reconversion.

transition.

1940.

L. B. Schwellenbach

prevent depressions and war.
we can do
it if we keep in
minds constantly that people
our
most
important asset.

forward

period of let-down from the pentup emotions of a long war. It has
been accomplished despite the fact
that we have had many work stop¬
pages due to the inability of man¬
agement and labor to agree.
It
has ; been
accomplished in the
American way—the way for the
protection of which we sent our
young men and women to wage
battle in all parts of the world.

task

to go back

reported by the Associated Press,

ended, America has almost com¬
pleted the heavy and dispiriting

History will
year

has

the

tional

can

public:

the

All this has

want

M-

depression

Labor, addressed the following

bers
the

in August,

doing

with

previous gains and to

ment,

that
you

its

plete text

postwar

employed today than there were

take

future!

the

sured of main¬

crease;

record 1946 as

<$>-

year

Before

as¬

taining

bounds

Qn#Labor. Day, Sept, 2, William Green, President
tedeTation of

about some of the labor problems of

you
a
brief look into

time highs and
must

to talk to you

with

peace¬

new

last

and

brought

production

bia affords

Execu¬

ad ded,

tive

its

conceit-

asserts that unless W

Chief

tide breaks

avoided.

■

accomplish¬

Labor,

Urges labor

!rate greater effort to win public opinion, and

inflation

the

Range View#!

By HON. LEWIS B.

completed and
much

Daring Past and Coming Year

In Labor Day message William Green tells of
wage increases won
that offset higher living costs.
Says little progress was made on
legislative front and that enemies of trade unionism are active and
"seek to revive Fascism in this

Sept.

2, President Truman declared that
the
largest
part of reconver¬

credit for

Cites j

increased participation of workers in public affairs] j

urges

commemorating

the observance of Labor Day

asserted

date.

workers deserve much of the credit for reconversion accomplishments to

says

necessity of safeguarding

Thursday, September 5,1946

27 State St.,

Tele. NT 1-86

Established

Boston 9

Tel. Capitol 89S0
Tele. BS 169
1926

•

Investment

•62 William St.

Dealers

in the

Soya bean field.

Analysis

Request

Securities
New York 5, N. Y.

Telephone
WHitehall 4-2422

Teletype
NY 1-2613

PETER MORGAN & CO.
31 Nassau Street

New York 5, N. Y.,

Branch Office

113 Hudson St., Jersey City, N< J.

Tel. BA 7-5161

Tele. NY 1-2078

the

Number 4522

[Volume 164

The lob
M:

Ahead of Us

By IRA

Chairman of the

commerciyi^:

^
■■ ■;■ ■ ,,
Association of Manufacturers

MOSHER*

Board, National

financial chronicle

1267

Officials of Fond Report
on
Implementing
And World Bank
Potsdam Economic Provisions
.

(Nineteenth of

[

Series)

HUBERT ANSIAUX
Fund and Bank

i As

■

s ;

the

advisor

to the

Belgian

the

to
unification, but to timing it immediately.
building up German exports so as to relieve American taxpayers

can

ment in
ed by

considerable

ture and functiOllS.

Hubert Ansiaux

was

■.

Hubert Jac-

Nicolas

ques

Ansiaux

born in Brussels

He attended the University

1908.

of Brussels,
mercial

graduating as a com¬
1930.
Early

engineer in

1934, Mr. Ansiaux joined the
Banque Nationale de Belgique, his
country's central bank, in an ad¬
ministrative
capacity.
In ,y May,
1940, the time of the German in¬
vasion, Mr. Ansiaux went to Eng¬
land,? where he represented the
bank; i; By decree of the Council
of Ministers, he was made a di¬
rector of the Banque Nationale de
Belgique in December 1941, an
appointment
which
the bank's
general assembly confirmed when
fit met in liberated Belgium in

"You and the Atom

jl944..

'jj
'>
Mn Ansiaux has been
,

managing

director of the Institut Belgo-Lux-

^embourgeois du Change and VicejPresident of the Office National

Berlin, when interviewthe "Chronicle," expressed

the view that considerable progress
has
been
made
in
Ger-

struc-

their

and says
!

many's

economic

affairs

||||P-

the

past year, although there is still

S Staes' ofice of miltary govern-

B''

great deal to be desired, owing gffc
largely to the fact that the country is split into four zones dif- ■%,
fering in resources and with unsatisfactory
intercourse
with
a

^ In additiop to the above-men-

Herbert

tioned post,

Bratter

trol

Authority.
''

Gen. Draper is the

member

Directorate

the

Economic

Allied

Wm.

(Continued

TRADING

on page

1289)

MARKETS

"OLD"
Preferreds & Commons

Chi., Milw., St. Paul & Pac. ;i

Old Colony Railroad

Chi.T Rock Island & Pacific

Rutland Railroad

Denver & Rio Grande West.

^
!

Duluth, So, Shore & Atlantic

St.

Louis-San

St.

Louis

Francisco

Southwestern

: Nehl

Seaboard Air Line

Y., New Haven & Hartford

Western Pacific

Y., Ontario & Western

Wisconsin Central

Securities Comm.

Educational
I

Missouri Pacific

'LINCOLN,

;of Securities of the

G. A. Saxton & Co., Inc.

Display

NEB.—The

Draper, Jr.

Con-

Draper's British counterpart is Sir Percy Mills, who

du Ducroire.

70 Pine

Bureau

Street, New York 5, N. Y.

Hitehall 4-4970

Teletype NY 1-609

State of Ne¬

braska at the 1946 Nebraska State

Fair will have
hibit.

the 1944 Fair
and
a

the

display

<and

booth and

ex¬

experimental booth
Bureau
as

Corporate Under writings—1946

most successful

was

again

having

part of its publicity

educational program.

acro chemical products

|! air-borne cargo lines
payne cutlery corp.

For

united

Banks, Brokers and Dealers

★

Neville Island
.

Glass

Corporation
Company

Chalmers

Founded 1920
120;

Broadway, New York 5

^Phone

$A% Convertible Preferred

utilities

specialty

Inquiries Invited ★

Greenfield, Lax & Co.
INCORPORATED

Member

of National Association of Securities Dealers, Inc,

40 EXCHANGE
Tel.:

BArclay 7-5660

HA.

PLACE, NEW YORK 5, N. Y.

2-9290

Teletypes: NY 1-2323 —1-2926

(When Issued)

Teletype: NY 1-583

Bought and Sold

Prospectus on Request

Prospectus

on request

BRITISH SECURITIES

United States
Members New York Stock Exchange

Government
Amott, Baker & Go.
INCORPORATED

Securities

New York Curb
and other

Phila.

Utica

Telephone:

Boston

Exchange

Exchanges

Goodbody & Co

120 Broadway, New York 5

NEW YORK
19
J

REctor 2-5000

Members N. Y. Stock Exchange
115 BROADWAY

Congress St.
Telephone:

Boston 9

LAfayette 4620

and

knowledge

and points

help the AmeriArmy is now recruiting

country, Brig. General William H. Draper, Jr., head of the economics
|
division of OMGUS, the United

with

3ank

zone

Spon after his arrival from Germany for a short visit to this

came

Fund

Army, with its German task

such volunteers.

B aging director
siaux

■

Germany's eco¬
objection is not
Stresses need for

Savannah

Conference

the

during past year
organizing Germany for recovery. Says absence of French from
Potsdam Was a mistake and cause of much of recent difficulties.

of present burden of
supporting Germans in our
to need for more American business
executives to

Fund.

delegation

;

Thinks Russians would have
agreed last Fall to
nomic unification and believes that even now their

of the
Fund
and
Hubert
Ausiaux fills the place vacated by
Mr. Camille Gutt, when the latter
;i
became mandirector
Bank,
Mr.

executive

•..

much progress

sees

.Belgian Executive Directoi* of
\

By HERBERT M. BKATTEE

Economics Chief of OMGUS

Telephone BArclay 7-0100

and Other Principhl Exchanges
NEW YORK 6, N. Y.

Teletype NY 1-672

1268

THE COMMERCIAL & FINANCIAL CHRONICLE

I^V

!«•' '* "

.Thursday, September 5,1946

BALTIMORE

Price Control Policy
Crucial for Business

Bayway Terminal
Davis Coal & Coke
Emerson

Drug

Common

•

:•-'*•';

Analyzing government's price moves, National City Bank Letter
urges consistency, and end to criticism
by special interests. Pre¬
dicts further advances in manufactured
goods prices, whose extent j
will be determined
by wage and efficiency factors.

C. A. Reed
Class

■:

Common

Noxzema Chemical

stein bros. & boyce

The great importance to businessmen of current and future
Price
Decontrol policy is cited

by the National City Bank of New York in

■fits September Monthly Bank Let¬

Members New York & Baltimore Stock

Exchanges and other leading exchanges
S.

CALVERT

ter.

Pointing out the past elements
uncertainty, the Letter says:
"Both in pricing and decontrol the

DES MOINES

ST., BALTIMORE 2

Bell Teletype BA 393
New York Telephone Rector 2-3327

WHEELOCK & CUMMINS
INCORPORATED

Price

Control

cessarily

BOSTON

the

business

Iowa Power & Light Co.
Preferred

Boston Wharf

Preferreds

Sioux

Dwight Mfg.

and

men

and

concerned

were

made

the

decisions

Common

new

Price

Board,
required
by
Aug. 20, as to reinstatement of
ceilings on farm products. A sec¬
ond unkown quantity was whether
the Office of Price Administration

EQUITABLE
DES

CoiHif

BUILDING

MOINES

Phone 4-7159

IOWA

Bell Tele. DM 184

would interpret liberally or se¬
verely the provisions under which

manufacturers

and

distributors

could

Purolator

apply for relief from price
squeezes, under new formulas.
Apart from these questions, the

DETROIT

reestablishment

Electromaster, Inc.
Prospectus furnished on request :■

Descriptive Analysit

Shelter

■,

request

Report furnished on request

Mercier, McDowell

Pont, Homsey Co.
31

MILK

BOSTON

STREET

Detroit

With the

ex¬

ceptions stated in the Act, prices
of
commodities
under
ceilings
were automatically rolled back to

Stock

levels, irrespective of any
conditions that had developed
of the new provisions in the

new

Act. Immediate

adjustments were
required to let business go on—for
example, price increases to offset
^stoppage of subsidies, to allow for
advances in

Exchange

Buhl Bldg., Detroit 26
Cadillac 5752 :. Tele. DE 507

the

materials during

raw

interim

period, or to adjust
on imported goods to high(Continued on page 1292)

HANcock 8200
!•

Teletype BS 424
N. Y. Telephone CAnal 6-8100

Josephthal & Company's analy¬
(by W. T. Hyde, Jr.) takes a

less

SALT LAKE CITY

GRAND RAPIDS

optimistic

Gas & Electric and Minnesota

Power &
to

establish

Stearns Mfg. Co.

U. S. Sugar Corp.

Eastern Utilities Assoc. Conv.

parent
stocks.

basis

the

Members Detroit Stock

ing the

General Stock & Bond

Corp.

Telephone Liberty 8817

GRAND

BROKERS

Stock Exchange

MICH. TRUST BLDG.

Teletype GR 184

Teletype SD 67

Boston .Real Estate Trust

Louisville

Hubbard

;

'f 'ft

Company

75 Federal

Street, Boston 10
Private New York
Telephone
REctor 2-5035

Exchange

A.M.,

Pac.

from

probably be required
to meet the call premiums.
This
would leave only the equity in
the three northwestern properties
for the common stock.
Capital¬

izing these at 13 to 14 times earn¬
ings would give a value of only
16 V2-171/2
rent

for AP—about the

price,

System, of

cent distribution of assets
by Na¬

tional Power &

ington

the recent
market break.
It is pointed out,
however, that the issue has highleverage possibilities,
v : \
Josephthal & Co. have also is¬
special analyses on# Consol¬

sued

idated Edison (slightly bearish on
the stock at 30), Central Illinois
&

Gas, General Public
Long
Island
Lighting

Time:

Std.

other hours.

11:30

Sp-82

Electric

!«! BANKERS BOND ^

•

Secondary Distributions
•

Bank and

$17.

distributed to
of

Thus

value

the

1st

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

Bell Tele. IB 186

■

Brokers

would

Peyton

■>

Mr. Etherington points out that
Pennsylvania earned $1.14 for the
first half of
for

the

thinks
1946

the year against 830

full

that

1945,

year

might show $2.30

since

the

last

half

better.

In his analysis of Carolina Pow¬
& Light, Mr. Etherington esti¬

mates

1946

earnings at around
share, and with the con¬
tinuation
of
present
excellent
water conditions this might be ex¬
ceeded.
He thinks a $2 dividend
rate is possible making the stock
attractive at under $40 a share (it
is currently quoted around 36 in
the over-the-counter market).
$3.25

With respect to the general
for
utility stocks, Mr.

feels

John B.Miller With

that

which

worse

likely to

additional

be¬

offer¬

ings are brought on to an already
glutted market."
Baker, Weeks & Harden have
issued an anlysis of the proposed
new American Telephone & Tele¬
graph rights.
Eastman Dillon & Co, have is¬
sued a report on Southern Union
Gas

Co., calling attention to its
appreciation
possibilities
based
above-average growth oppor¬
tunities both in utility service and
in developing additional gas re-

Naess & Gummings
Naess & Cummings, New York,
Baltimore investment

Boston and

announce that John B.
Miller, formerly head of research

counselors,
in

the

fice

Lieutenant

Commander,

R., has joined the staff

the New

York

office

BOUGHT

—

Oneida Ltd.

Stix & Co.

Preferred

Utica & Mohawk

•

Insurance Stocks

INVESTMENT

Cotton Mills,

SECURITIES

Industrials—Utilities
509

olive:

Inc.

Light Common

SOLD

—

QUOTED

< {

Paine,Webber, Jackson & Conns
1879

Midland Utilities Common

Staley Common

INQUIRIES INVITED

street

Inactive Securities

F. t. PUTNAM <5, CO., INC.
Members Boston Stock
77 Franklin

MOHAWK VALLEY
INVESTING COMPANY
INC.

Street, Boston 10, Mass.

Tel.

Portland

ST.LOUISI.MO.

Exchange

LIBerty 2340

Providence

Springfield

Members St. Louis Stock
Exchange

238

Tel. 4-3195-6-7

Tele. UT 16
f

Gilbert J. Postley & Co.
29 BROADWAY, NEW YORK 6, N. Y.

Genesee St., Utica 2, N. Y.

that

S., has resumed his duties

in the Baltimore office.

A. E.

and

Edgar S. Jacob, formerly Captain.

Puget Sound Power & Light Common
,

de¬

the Philadelphia of¬

Smith, Barney & Co. and

recently
U.

advisory*

investment

partment of

UTICA. N.Y.

Common

year

or better,
seasonally

Building, Spokane

Kellogg, Idaho and Yakima, Wn.

and

the ' calendar

Underwritere

Branches at

aggre¬

Public Service of Indiana Common

Exchange

Spokane

Dealers

total

fractions

holder of each

National

v '

the

Federal Water & Gas Common

Members Standard Stock

England Coverage
•

"near-term,

CORPORATION
e;

Incorporated

New England Markets
..

near-term

ESTABLISHED

•

the

Pennsylvania Power &
Light at $30, Carolina Power &
Light, ■; at $50 and ' Birmingham

V--

STANDARD SECURITIES

ST. LOUIS

Retail New

Light, Mr. Ether¬

estimates

value" of

cur¬

following

(consult¬
comprehen¬

which several have been released
clients.
In analyzing the re¬

gate $13.78.

ments would

retiring

the preferred stocks at
par, while the company's working
capital and miscellaneous invest¬

Co.

preparing

Floor

10:45

Winn & Lovett Grocery

Megowan-Educator Food Co.

'•> !-.•

Gas Pref.

New England Lime Co., Com.

public)

Etherington

are

sive series of reports on the Elec¬
tric Bond and Share

Delaware Power &

of Orders

Quotes call TWX Sp-43

5onsolidated Lobster
i.

the

ants)

Corporation

stock.

SECURITIES
For Immediate Execution

Girdler Corporation

Merchants Distilling Co.

Eric

NORTHWEST MINING

American Turf Ass'n
-

sold

(includ¬

common

also issued

Boston Edison

Utah
Phone 5-6172

SPOKANE, WASH.

American Air Filter

■

15%

amount

LOUISVILLE

..amson

Building

Salt Lake City,

Teletype BS 373

Arlington Mills

1898

Members Salt Lake Stock Exchange

RAPIDS 2

Phone 94330

BIO P. 0. Square, Boston 9, Mass.
i

;

CO.

entire

has

Superpower

common

come

W.H. CHILD, INC.

Exchange

c a n

would be required to take care of

situation

Trading Markets

WHITE/ NOBLE &

exchange for the
company's
preferred
Mr. Hyde thinks these

"pressure from
stocks being sold by holding com¬
panies has created a weak market

MINING

Established

earnings can be capitalized at
only about 13 times, and on this

Hyde

STOCKS

M. J. Whittall Assoc; 2nd Pfd.

for

offered

outlook

Douglas and Lomason
UTAH

value

vice.

for

market

remaining stocks which would

firm

and Northern Indiana Public Ser¬

BROKERS and DEALERS

Boston Sand & Gravel

Light—the object being

the

Electric

TRADING MARKETS

Nu-Enamel

American

Light recently proposed
to sell 15% of its
equity holdings
in Texas
Utilities, Montana Pow¬
er, Florida Power & Light, Kan¬

Utilities,

Simplex Paper

view.

The

unfavorable report on Ameri-

Power &

prices

MASS.

& Dolphyn
Members

difficulties.

caused

June 30

Manufacturing Corp.

Inquiries invited

ceilings after
days of free markets naturally

Products

Torrey story estimates the potential break-up value of the

sas

those of the

were

stock at $40-50 (about in line with
fthe Bear, Stearns
serves.
analysis).
,
sis

Decontrol

City Gas & Electric Co.

Preferred

administrators,

analyses of utility companies have ap¬

peared recently despite the decline in market interest in the
utilitygroup.
Among these was a 19-page brochure on American Power
& Light by Cohu &
Torrey and a shorter analysis by Josepthal & Co.
(Bear, Stearns also prepared a study some weeks ago.)
The Cohu

ne¬

know what policies and standards
would be established.
Most im¬

portant

United Light & Railways Co.

Act

gave a good deal of lee¬

way

Extension

Recent Street Analyses of
Utility Stocks
A number of Wall Street

Direct Wire te Chicago

Volume 164

Number 4522

THE COMMERCIAL & FINANCIAL CHRONICLE

Green Light for

Place of Public Works in

Division of Research and Statistics
*

Board of Governors of the Federal Reserve System

Federal Reserve economist

public works have a two-fold eco¬
importance in that they supply certain public needs that
cannot be obtained otherwise and that they may be used to
ameliorate fluctuations in employment. Sees no clear-cut division
between exclusive spheres of public and private activity and, al¬
though maintaining public works programs contribute to employ¬
ment and national income, holds this should not be their primary
motive.
Holds public works are not principally an instrument of
fiscal policy or a substitute for other government economic policies
for full employment, and contends public works programs are im¬
portant to maintenance of private enterprise,

;

avers

>
The economic importance of public works and services is twofold.
They satisfy certain needs of the community which cannot be met

■

s'" '■

well in any ®

other way and

the volume of

more
prominent, if not always
favorable, attention. Now, in the
postwar economy, it will be nec¬
essary to set both the 'heed and
the employment aspects of public
works in proper perspective if ef¬
fective and beneficial planning is

employment.

to be carried out.

they
be

also

may

used

times

ameliorate
fluctuations in

;

the

first

these

Public

of
to

in¬

it impossible

(Continued

sufficient

the

on page

credits.

the

Another

that' the

pending

objection was
embarking on certain
projects before Ex-Imp

would increase scarcities of goods
in this country.

The decision

amounts

made

Bank
be

article by Dr. Stett¬

published

ner

nomic

the

"Postwar

Eco¬

Studies, No. 6," issued by

Board

Federal

Governors

Reserve

and

the

System, Wash¬

one.

the

struction, for which large amounts
of American capital goods would
be needed.

Various Ex-Imp Bank
officers and State Department of¬

ficials, including Under-Secretary
Will Clayton, favored accommo¬
dating the Brazilians. NAC gave
the

approval,
which
precedent for ap¬

necessary

naturally sets a
plication
elsewhere

Latin

America.
is

re¬

the

Office

and

will

out

Officers of the Bank would

soon.

like to

stock

see

the World Bank oper¬

ating

on a scale sufficient to take
the emergency financing task
which in recent months has rested
almost exclusively on the Exportover

Import

Bank—the

cepted.

These officers would like

loan

ex¬

Ex-Imp Bank to play the role
was envisaged for it at the
an

institution to promote

market

As
Government

"nobody
Bank

and

from

seen

carry

Transition

out this

principle.

What

we are

want

money.

grows

the other
cials

hand,

the

tal

market for capi¬

goods, of which the end of the
left this country with surplus

war

least

Accomplishment No Cause for Pride,
Says Guaranty Trust Co.

Bank's publication holds period shows record of lost
opportunities.
Blames rigid price regulations and other attempts at centralized

control of economic activities.

Forecasts unbalanced

government

and

less

What

disturbs

the

prospect

much

upon

-a

grants abroad.

going

fall

matter

comes

date in the

American

"Guaranty Survey," management,
monthly review of business and practices.

and

/'\A''

"It is

record of

opportunities

lost through ill-advised efforts to

prevent, 3 by
natural

arbitrary

decision,

necessary

and

economic

"In

difficult

be;

than

other

Undoubtedly

at centralized control and the im¬

perative

for escaping from
fully and as quick¬

Sustained

serious
but
not
irreparable.
Despite shortages, high costs and

was
expected to
respects, more so.
the most favorable

position to

hastening

the

when the last of the wartime
trols

can

laying
war

for
to

relinquished,

prosperity.
the hope

and

There is ground

that this will

decontrol

broad-minded

and

the

part

('%•«. "i

•

:;!»

tolerant

atti¬

labor and

their

the

armed

families

"Aorne".'

Well, they

home by the

came

hundreds of tboiisalids and their
homeward trek still goes on. All of
which brings this recorder to the

point of announcing to the friendly
readers of this column that 1410
out of 1869

employees of Schenley

and

company to enter

the armed forces,

have returned to civilian life. And

1243, or better than 88%, of these
home-coming veterans, are already
this company's payrolls.

not

seen

private

any

agency

govern¬

reports of

•yjfcjV.

num¬

original

'ip«i

tional
turers

employment.

Association

The

Na¬

estimates that

Manufac¬
about

50%

of industrial employees generally,
have resumed their jobs with pre¬

A-

war

employers. If these figures are
can be just a little bit,

correct, we

have become associated with

perhaps pardonably, proud of
Schenley's record of 88%.

large-scale

unem¬

Total output and total
have
been
rather
well

our

Trading Department

It may be of interest to

readers

veterans

military service under the

E. H. Rollins & Sons
New York

•

Boston

•

Philadelphia

pitalization, medical

Chicago

•

ness

V, San Francisco

care

and sick¬

and accident benefits.

In the meantime,

continuing its

the company is

program

of military

benefits to supplement service
pay
for employees—still in uniform.
And it is this recorder's
pleasant

are

duty, too, to pass on the informa¬
tion that 956 returned veterans of

pleased to announce„that.

the

has this

1243

former

skills gained

day been admitted

-y\£iin

our

as a

Schenley

General Partner

in the armed forces.

FREE—

firm

96-Page Book
containing reprints of

F. S. Smithers

in all Unlisted Securities for

Go.

;

'
■

ESTABLISHED

1857

earlier articles

subjects.

Mail

various

coupon

•'

•,

New York Stock

Street, New York 5

115

Broadway

September 3, 1946

■■■■•

members

Exchange

•

18A,

New York Curb Exchange

New York 6, N. Y.

MARK MERIT OF SCHENLEY

DISTILLERS .CORP..

•'

em¬

ployees who went into the service,
have been upgraded or promoted
immediately; the reward for new

MR. HAMILTON D. SCHWARZ

brokerage service

Telephone: WHitehall 3-7830

com¬

which includes life insurance, hos¬

Incorporated

S. Weinberg & Co.

Banks and Dealers

re¬

pany's retirement and benefit plan

3 40 Wall Street, New York 5, N. Y.

Members N. Y, Security Dealers Ass'n

60 Wall

these

our

ceive full credit for time spent in

cju

We render/a

know that

come

policies,

women

and

•••>

con¬

with wise and temperate

control

tudes

day

firm foundation for post¬

pass

rapidly in supplying pent-

demand,

Mr. Thomas J. McGahan

other problems, most divisions of

forward

are

? /

N.'V;>•

and

Government expenditures.
In
"Price regulation was desirable
some
vitally important industries,
as a temporary device for smooth¬
however, the transition has been
ing price readjustments that might
badly impeded by wage disputes
otherwise have been too violent.
and by governmental
regulatory
But it was not used for that pur¬
policies that have prevented the
pose.
It was used instead as an
prompt and orderly settlement of
Instrument for holding prices rig¬
those disputes.»The
resulting • de¬
idly at an arbitrary level without
lays and shortages seem likely to
-sufficient recognition of the need
continue to give trouble for some
•for adequate business earnings as
time to come.
Fortunately, there
an
incentive to production.
The
are
indication
that
price
and
result was that reconversion was
wage control policies in the future
impeded rather than hastened, and
may be based on a more realistic
inflationary pressures were
recognition of practical business
strenghened rather than allayed;
(Continued on page 1295)
v "The
damage that has been done

industry

,-i

eyes

thought was upper¬

one

ber of veterans returning to their

to announce that

■

feature of the record has been the

income

forces,

back

maintained, despite the sharp drop

ly as possible.

and

men

But the demands

Mr. Paul Ludlam

ployment.

respects the postwar
transition process has proved less

avoidance

need

^ A

some

readjustments," according to "The
Survey," "and it illustrates the
dangers inherent in all attempts

such control

pleased

are

came

most in the minds of millions of

conclusive surveys as to the

fiscal

sound

there

year ago

and when moist

yes,

dried,

were

ment

■*->''

Well

over a

We have

financial conditions.

Employment

sided;

schedule

investments

States, viewed

in its current

A little

budget.

"The record of the first year of postwar transition in the United
as a whole, gives little cause for
pride," states the
Guaranty Trust Co. of New York<$

Job

V-J Day. When the cheering and
the shouting and the laughter sub¬

such

it is of Ameri¬

realization

investors

not

advertisement which

Distillers Corporation who left the

pretty late

are

from the

By MARK MERIT

application of Amer¬

the impression gleaned from re¬
ports coming to Washington that

Back Home... and

of the offi¬

pass

Some readers of this may think
such

loan either

SCHENLEY DISTILLERS CORP.

of cure-all
ailments.
On

credits.

that

likely to seek

appear an

•

can

American

rowing country

"City

journal,

hope will be of interest to our fellow
Americans. This is number 141 of a series.

Ex-Imp's

human resources within the bor¬

political tool than it now is. But
they are not too optimistic about
achieving their purpose soon.

article

credits
may
not
actually
cripple, rather than permanently
benefit, the loan applicants. Re¬
covery, as these officials see it,
is

cited

financial

news¬

World

ican

rise

Export-Import Bank.

applications wonder whether

they favored the Brazilian
project mentioned above is that

it would make

the

from the World Bank

•

some

must

too generous

reason

view

Observer," to the effect that the
UK is

sort

national

who

also

paper

London

infrequently to regard

their

that

incorrectly

loan

can

for the reduced
of the Ameri¬

power

commodity prices here. The

economic and financial assistance
for

make

purchasing

applicant coun¬
tries are not giving much thought
to repayment possibilities.
They
not

Fund

seek additional dollar cred¬

Any amount will do, so
it is dollars' The impres¬

SCHENLEY DISTILLERS CORPORATION

wanted ; is

sion

Governor

NOTE—From time to time, in this space,
there will

long

seem

Britain's

waiting for the

•

Chancel®

'v;

heard

was

that

Exchequer Hugh Dal-

one

productive capacity.V They prefer
Ex-Imp to be more a commercial

ington, D. C.

its

World Bank to get started, ExImp is continuing to receive ap¬
plications for help from one place
or
another.
Recently, for exam¬
ple, a Macedonian cry from Vi¬

offices.

reported

the

vantagepoint,

bonds."

So, while

shivers

seems

"gangsters"

shrinks again.
U.

Government

now

blast at

may

international

out with

enna

Ex-Imp's next semi-annual
port

World

seems

gathering
where discord is being
Every time Isvestia comes

places,

the

con¬

get

Investors are discouraged by
daily reports from Paris and

other

port

communications

There

tool

sub¬

not

Bank, when he comes to
Washington late
in
September

Treasury De¬

ness about international
organiza¬
tions, of which the World Bank is

aired.

and

spondent
lor

growing attitude of cautious¬

hinged on a largescale Brazilian project for trans¬

outset of

1286)

have

Only last month (Aug. 17) the
Chicago "Tribune" London corre¬

American foreign trade. The main
*Part of

country and in Europe the

works

benefit

receive

} century, but the lack of properly planned
public

the

community as a whole is an ac¬
cepted goal of economic and social

public

using
public
works
as
a
factor
in
the
economy
has
recognized by the early part of this

l>een

which

came

1 Both in this

possibility
stabilizing

result

and that the big need abroad
present is for reconstruction

the

aspects

expenditures

war,

work and the limits within which

and

for

Board

securities.

policy and establishes the frame¬

come-creating

Reserve

themselves

ment

Stettner

Those in the Federal

"well-heeled"

public
works
plan¬
ning.* During
the depression
the
employ-

resources

outside
,

and

ment

inated

Services—A

and

The conservation and develop¬
of our human and natural

pects .dom¬

Walter

Works

Reflection of Changing Needs

as¬

ton,

time.

Printing

Until the thir¬

ties,

has been dividing differ¬
of the National
Advisory Council, especially on the
level, was decided in August in favor of the Export-Import
Bank's viewpoint. This issue was whether the Bank should
be mak¬
ing commitments for large development loans in Latin America at
members

staff

partment who said it should not,<S>
argued that Latin America was over

nomic

the

sided.

this

Economy

By WALTER F. STETTNER*

from

Development Loans

WASHINGTON, D. C.—An issue which

ent

The National

1269

350

Fifth

Devt.

Avenue,

1, N. Y.

Name•

Street.„

c—
City_

JZone

State_

&-FINANCIAL CHRONICLE

THE COMMERCIAL

Exchange Place, New York 5,

N. Y.

Trading Market

Dealer-Broker Investment

Hemphill, Noyes Go.

Lipe

Thursday, Septembers-, 1946

......

Rollway—Analysis — Ray¬
Co., 148 State Street, Bos¬
Mass.

Promotes Stevenson

mond &

Recommendations and Literature

Central Electric

It is understood that the firms

& Gas Common

to send

ton 9,

mentioned will he pleased

following literature:

interested parties the

Car Corporation

Magor

Manufacturing

pects—By Lt. Col. George Bryant
Woods—White, Weld & Co., .40
Wall Street, New York 5, N. Y.
—cloth—$5 per copy.

Established 1922

La Salle Street
CHICAGO 3

120 South

TsL

Bull Market—How

the News," discusses

Dealers

Securities

Long?—Mid-

this question

interesting companies—
Strauss Bros., 32 Broadway, New

Association

Member, National

York 4, N.

Middle West

UNDERWRITERS
/

MARKET

SECONDARY

DISTRIBUTION

tive

135 LaSalleSt.

;■

State 6502

$
•L

;

Consolidated Gas
Utilities Corp.

< •

.////:

"Timber

Co.,

>/•

Co.—Ask * for
Booklet C—William L. Burton &

•Wella-Gardner & Co., Com.

Timber

•••'V

'■

••

•

•<<!

" v -;

York 4,
' .r

American Power & Light Co.—

Snap-On Tools Corp., Com.

Special report—Cohu & Torrey,

Inc., Cook

Wall Street, New

Longines-Wittnauer Watch Co.:
/;
;; v
.-.Common
,
Request

■ \

Paint

Situation

Interesting

come—F.

K. Koller

•Ill

Mr.'

been

ber

mem¬

the

Hemphill,
N'oyes organi¬
zation

since

Vairnish

Interesting / possibilities

<
[:
Co.—'

•

*•-ft*-''«i —

■*:* —'

.-V y.f

Decker Manufacturing

cago 4, 311.
•
v Also
available

Press

■ are

analyses

ofi

Manufacturing;
and

Long Bell Lumber Co.,
Miller Manufacturing Co.

Co.;

Hoit,

Davis

Parke,

York 5, N. Y»

♦

■

service, Mr. Stevenson, for several
years,

was

assistant general sales

manager.

During the war, while on leav^
"absence
from the Hemphill*
Noyes organization, Mr. Stevenson
was a Lieutenant j.g. in the United
States Navy and served in active
of

combat

the

Pacific

area

is a grad¬
uate of Princeton University
He

destroyer.

and The Lawrenceville School. He

Council,-and is Secretary of

uate

The Lawrenceville School Alurani

Association. He is Reunion Chair¬
man

sales,

operating

1935,

Class

Princeton

his
a

member

York.
~Ul;'*

w 1

j;"1-

n.m HI' HI.

and current operations as

record

properties,
research, foreign business, man¬
agement,
advertising and sales
policies and financial positionFirst
of
Michigan Corporation,
Buhl Building, Detroit 26, Mich.,
and 2.Wall Street, New York 5,

-well

Stevensor

•

of the Broad
Street Club and :• of the Young
Co. —Survey
Men's Bqardvjc>£: to

containing tables and descriptions

Co.-/De-J of, earnings, and

Analysis^—Comstock & Co.;
South La Salle Street, Chi-<

;

Hemphill, .Noyes branch offices—r
Albany, *■■■ Chicago,
Indianapolis,
Philadelphia,. Pittsburgh, Trentou
and Washington. Prior to his war

tailed
231

—

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

"resides.at Griggstown, N„ J., is a
member of the Princeton GradT

■

Panama Coca Cola—Circular od;

;

Analysis-/!. <R. Williston &:&Co.;
115 Broadway, New York 6, N. Y;
■

Hydraulic

5t' N. Y.

Cook

industry

Cor, 25 Broad Street, New

•Prospectus Available

York

Bell Lumber
Cedar . Works,

Richmond

erhauser

N. Y.

Cribben & Sexton

for InCo., Inc.,
Broadway, New York 6, N. Y.
Also available is a circular on

of'

Chicago, Rock Island & Pacific
Railway—Circular—Bendix, Luit-i
weiler & Co., 52 Wall Street, New

Southwest Lumber Co., and Wey-

1 Wall St.

New Bedford Rayon—Discussion

with data qn Long

Randolph 5686—CG 972
New York Office

Stfeet, Chicago 4, 111.

;

Returns"—Brief 'resume

of the lumber and: timber

Exchanges

CHICAGO 4

So. LA SALLE ST.,

&
New

•V//; v*V;- v'' .si

Chicago Board of Trade
S31

Corp.—

Chicago 4* 111.

Salle Street,

Analysis of Interesting OutlookIra Haupt & Co., Ill Broadway,
New York 6, N. Y.
1
"'
.

HICKS 6- PRICE
Members Principal Stock

Utility

Analysis and Projection of Values
—Brailsford-& Co., 208 South La

Equipment Industry—

Railroad

Request

Public

Salle

111.

The-Muter-Co.

Man-

Stevenson has

1945, has bsen
supervising
'the< seven

:
Also available are memoranda'
Northwestern Yeast Company—
appraisal of Railroad Equip¬
on
the Muter Co. and1 Consoli-; Memorandum—Adams & Co., 231
ment
Certificates
and
City of
dated Gas Utilities Corp.;.. v.
South La Salle Street, Chicago 4,
Philadelphia Bonds.
■■■>■ ur -

■

Circular

Central

Stone-

Analysis—Kugel,

General

December,'

dealers

for

hiemorandum

only—Adams & Co., 231 South La

Street, Chicago 4, 111. <

National Terminals Corporation

—Late

Salle

and

/ Tho Chicago Corp.

CI—Fred W. Fair-

208 South La

Co.,

LA 255

CG 99

Utility—Discus¬

•v Chicago Corporation — A new, Delaware Rayon,;.;
.y, ./j analysis of the .company, which is.
now,listed on the N. Y. Stock Ex-;
New England Lime CompanyPennsylvania Legal Bonds—
change, with special reference to(
Compilation—Stroud & Co., Inc.; the Oil and Gas Division—Hicks & Ctescriptivev circular — Dayton:
Haigney & Co., 75 Federal Street,
123
South Broad Street, Phila¬
Price, 231 South La Salle Street,; Boston 10, Mass.
.
delphia, Pa."
f :
Chicago 4, 111./,:
Also available :is
a evaluation

650 S. Spring St.
Michigan 4181

man

New York 4, N. Y.

Co:, -Inc., 20 Broad- Street,
York 5, N. Y.
- \
-

LOS ANGELES 14

CHICAGO 3

1935 and since

Central Public

Earnings—Compara¬

1946 Bank

Walker

Beaver Street,

age'r.

Company Integration
Plans—Developments in Several
Situations—H. Hentz & Co., 60

For

Stevenson, Jr.,
Sales

sion—circular

Pacific Coast

—

the

appointment

National By-Products Inc.—An¬

Wholesale Distributors
Holding

Exchanges,
announce

Co., 52 Wall
Street, New York 5, N. Y.
-

ber

vestment bankers and members of
the New York and other Stock

alysis—Braiisford & Co., 208 South
Carolina Power & Light Co.— La Salle
Street, Chicago 4, 111.
Analysis—Ira Haupt & Co., Ill
-Broadway, 'New York 6, N. Y.
National Iron Works—Postwar
Also available is an appraisal of
Analysis—Nelson Douglass & Co.,
-values
of New England Public 510 South
Spring Street, Los An¬
Service. Co..•;v/,,v>/\. /., / •
geles 13, Calif.

and reviews the stocks of a num¬

GARTER H. CORBREY&C0.

quality railroad equip¬

Southern Utilities Company.

bulletin, "Geared to

Year issue of

De¬

—

investment

for

Blair F. Claybaugh &

study of Iowa

Also available is a

Tele. CG 271

Randolph 6960

Pros¬

Future

and

try—Present

& Co.

C. L Schmidt

155

Co.,

■

ment issue—ask for circular CC—

Montgomery
Street, San Francisco 4, Calif.
&

Strauss

Indus¬

circular

dealers

Aircraft

tailed

Hemphill,
Noyes
&
Co.,
15
Street,.New York City, in¬

Broad

Line —Current

Air

Seaboard

and

plant

Situation—Vilas
Wall Street,

Hickey,

New York 5, N. Y.

Sheller Manufacturing Cerpt

—

report—^Mercier, McDowell
&' Dolphyn, Buhl Building, De¬
Recent

N.-Y.- c. ; , ; •
troit 26, Mich.
' /
«
Detroit
International
Bridge
/•;ti.-'
vV.
-T •'•"'/
•:| American Window Glass Co.— Company — Recent study — F. J.
Fred B. Prophet Company—De¬
Showers Brothers Co.—Analysis
Analytical
brochure /indicating Young & Co., Inc., 52 Wall Street^
tailed
memorandum—De Young —Caswell & Co.,
120; South La
speculative possibilities — Knee- New York 5, N. Y. ; *
'';S ..n -V/. *-* • \ Larson & Tornga, Grand Rapids Salle
Street, Chicago 3, IjLl^ x
land & Co., Board of Trade Build¬
National Bank Building,
Grand
C. H. Button Company—Analy¬
ing, Chicago 4, 111.
L
Rapids 2, Mich.
Soya Corporation of Americasis for dealers only on 66-year old
Analysis—Peter Morgan & Co., 31
Company
with interesting pros¬
Red Rock Bottling Co. Of Cleve¬ Nassau 'Street, New York* 5* N. YV
j Argo Oil Corp.—Descriptive cir¬
cular—Seligman, Lubetkin & Co., pects—Moreland & Co., Penobscot land
Memorandum — Frank C.
Building, Detroit 26, Mich.
Inc., 41 Broad Street, New York 4,
Moore & Co., 42 Broadway, New
Steel Products Engineering Com*
N. Y.
•
* •
;V
York 4, N. Y. ' "
'
*
pany—Memorandum—Dempsey &
Dwight cMaiiufacturinff Co. ri Also available are circulars on
/
'
Co., 135 South La Salle Street,
analysis—du
Pont, ^ Rockwell Manufacturing Co.—
Tennessee Products and Wellman Descriptive
Chiqago 3/111.
;
Milk Street,
Engineering.
// :";////:/:' ■f Homsey C6., 31
Analysis—Steiner, Rouse & Co.,
Boston 9, Mass.
j'
25
Broad Street, New York 4,
Syracuse Transit CorporationAlso available is an analysis ,of
Aspinook Corporation—Circular
N. Y; • ///// /^'
Study of situation and outlook—
Boston"
Wharf • and
Purolator
—Ward
&
Co.,, 120 Broadway,
J. V. Manganaro Co., 50 Broad
Products.
New York 5, N. Y. /s
St. Louis Public Service "A" —
Street, New York 4, N. Y.
Also available are memoranda
Detailed
memorandum — "First
/
Foremost Dairies, Inc.—Memo¬
on W. L. Douglas Shoe Co.; Gen¬
Securities Company of Chicago
Warner
Company — Memoran¬
and 134 South La Salle Street, Chic-;
eral Tin; Hartford Empire; Lanova randum for banks, dealers
dum—H. M. Byllesby & Co., Stock
Corp.;r Mohawk ^Rubber;
New brokers—Troster, Currie.& Sum¬ ago 3, 111.
•,
/"/; V
Exchange Building, Philadelphia
Jersey Worsted; Oil Exploration; mers, 74 Trinity Place, New York
"

v",'

Pa al M.Davis &Go.
Established 1916
Members Principal Stock

Exchanges

Chicago Board of Trade

- -

10 So. La Salle St., Chicago

—

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

Tel. Franklin 8622

t" :

.i ii

FINANCIAL
ADVERTISING
All

Branches

Its
,

•

•/

Plans Prepared—Conference

Albert Frank

•

;

Invited

> t

Guenther Law

and Taylor Wharton Iron & Steel;

6, N. Y.

New York 6, N. Y.

Telephone COrtlandt 7'?C60
Boston Chicago

General Public Utilities Corp.—r

Mills—Report—Luck- Analysis—Hettleman & Co., 1 Wall
Company, 40 Exchange Street, New York 5, N. Y.

Avondale
hurst

;

Philadelphia San Francisco

Inc.Analysis of the
California Consumers Corpora¬ situation and prospects for appre¬
ciation—J. F. Reilly & Co., Inc.,
tion
Detailed report — J. S.
-

Higgins,

Central Public

Offered by Prospectus
'
."J ' ■" •" : *

•

■

•/

■

Schenley Distillers

they have

running in the Chronicleto Mark Merit, in care ot
Schenley
Distillers Corporation
350 Fifth Avenue, New York l

been

••

■' • '

2, Pa,,

•

ttt,

■

f. ■■■ '■■■■ /

f.'

n. Y.

Priced at $3 per

■

Western

Light & TelephoneMemorandum—Buckley Brothers,
420 Walnut Street, Philadelphia 2,
-

Pa.

Also
on

available

are

memoranda

Gruen Watch Co. and Eastern

Corporation.

„

—We Maintain Active Markets In—

DEEP ROCK OIL CORP. Common
F. L. JACOBS CO. Convertible 5%

Common Stock,/

1952

memoran¬

Corporatlor

—Brochure of articles

Southwest Merchandise Mart

Utility
514%

Milling Co.

write

Place, New York 5, N. Y.

—

Fred. W. Fairman Co. '
JMMHMHSINCE1908BMMMHIl

available

Barcalo; Haloid.

Incorporated
131 Cedar Street

Also

dum on Standard

Preferred

MOUNTAIN STATES POWER CO. Com. & Pfd.

Write for C 1,
A

208

discussion of this company.

SOUTH LA

CHICAGO

SALLE ST.

4, ILLINOIS

Telephone Randolph 4068
Direct Private
Bell

Wire to-New York

System

537

SILLS, MINTON & COMPANY

H. M.

Byllesby and Company 1
Incorporated

INCORPORATED
*

Members Chicago

Stock Exchange

209 SO. LA SALLE ST..
Telephone Dearborn 1421
Direct

Private

Wire

135

CHICAGO 4, DLL.
*
Teletype CG 864

G. WHITE

& CO., New York

Telephone State 8711

New York

•,•

So. La Salle Street, Chicago

Philadelphia

Teletype CG 273
Pittsburgh

Minneapolla

..Volume 164v Number 4522 - :

///

-THE COMMERCIAL & FINANCIAL CHRONICLE

8. The presidents of affiliates shall in all
mittee members.

•

1271
be National

cases

9. The
■

National

....

Committee

shall

abolished

...

and

Mam & McGabaa

Board

Directors,.or Board of Governors,'take their place.

Com-

The

mem¬

bers shall be the presidents of all

NSTA Notes

tive

Council

ex-officio.

The

Board

Directors,

Board

over all duties and functions now vested
in the National Committee.. Quorum shall consist of
two-thirds
of the eligible membership.

10. The

office

and

beauty of Washington State. The annual
convention of the National Security Traders Association is this
year
/being held in Seattle and in a reservation leaflet accompanying the
'

11.

Rollins

City,

announces

formerly

Warner

compensation

rill

Beane,
with

booklet

the Club states:

/.;/.:

:7yj. y/V/'77'.

12. The

and

trouble, the Weather Man reports:
temperature is 70 degrees high and

''For Sept.

17—average 53 year
During the same

54 degrees low.

•

period, it has rained 14 times.'"

must

the
be

amended from Oct.

the

Traders Associa¬

its first annual breakfast on Tuesday morning,

'Sept. 17, at 8 o'clock at the Associations Convention headquarters in
j Seattle.
Edward E. Parsons, Jr., Wm. J. Mericka & Co., President of
the NSTA during 1944-45, will preside.
~
;
"

the firm

before Jan.

of each

calendar year,

of each fiscal year,

Chicago have offered

gold and silver badges will be presented to all

firm

Mer¬

Fenner

its

associated

trading de¬

was

previously reported
22.

amendment

providing for the creation of the office of Executive Secretary
with specific allowance for expenses and traveling.

TRADING

MARKET

An executive session of National
Committee has been called for
4 p.m.,

Cliffs

changes.- Mr. Graham,
has asked

Pierce,

the "Chronicle" of
Aug.

Tuesday, Sept. 17, 1946, in Seattle, to consider constitutional
as suggested by certain of the NSTA affiliates,
counsel, Arthur Grafton of Grafton & Grafton, Louisville,
past officers. A brief report will; be heard from all officers for the
Kentucky, to check the present Constitution and recommend any
current year, and the proposed changes in the NSTA Constitution
changes or corrections as to form only. • • :
y
will be discussed,
I
f
3 The Constitution Committee, composed of Henry Arnold—Chair¬
INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA *
' man, Perry Brown, Stanley Hoggenburg," Jerry Tegeler, and Hon.
Fred Busbey, has been asked to have a
report ready for this meeting.
;
The annual meeting and election of officers and governors of the
The subject of the Constitution is a vital one and
very important.
Investment Traders Association of Philadelphia will be held Friday,
f

At the breakfast

Lud-

Arthur

Mr. McGahan's association with

partment.

NSTA.

paid

14. The Bond Traders Club of

The Past Officers' Club of the National Security

tion, Inc. will hold

members

13. Dues

NSTA PAST OFFICERS' CLUB

•;

Membership Committee shall be composed of Chairman,
Vice-Chairman, and members be; appointed from individual

"For those having wardrobe

♦

that' Paul

with

have v become

■

;

Incorpo¬

Co., Inc., and Thomas

Lynch,

Wording of Amendment No. 10 identical except amendment to
i

Sons

McGahan, formerly with

take effect Jan. 1,

1948.

lam,

Executive Secretary shall be
created, the duties
to be specified by the National Committee.
This amendment to take effect Jan.
1, 1947.

The Bond Traders Club of Seattle is
distributing a brochure illus¬
trated in color on the scenic

rated, 40 Wall Street, New York

...Governors, shall take

BOND TRADERS CLUB OF SEATTLE

With E. H. Rollins

affiliates, two members from
the; individual membership, and the 11 members of the Execu¬

Corp.

COMMON

Sept. 6, at the Benjamin Franklin Hotel, Philadelphia.
Which is for "members

The meeting,

only, will be ^.called to order at 5:30 p.m, and
Affiliates,
ofqlock. • - s, • »•.'. 7
'
4

will be followed by dinner at 8

The nominating committee, headed by Robert A; Torrens, Harriman, Ripley & Co., will present the following officer candidates: •

President, Alfred W. Tryder, W. H. Newbold's Sons & Co.
1st Vice-President, Frederick S. Fischer, H. N. Nash &
Co.////if,
2nd Vice-President, ;■ John M. i Hudson/ Thayer, Baker &- Co. - x
.Secretary, Wallace! H. Runyan, Graham; Parsons & Co.
*;77
Treasurer, .Paul C. Frederick^, Jr., Warren W. York & Co.

;

From

20...nbmihees, ^ nine governors

'three years, one for two years and-two for a one-year term.
to be chosem are threejtrustees^tpvadmihister
?

With pleasurable anticipation the
Of; the retiring

embellished 'remarks

Rambo, Close* & Kerner.

^IVV

Forecasts Revival of Price

AMENDMENT'S
Amendments io the Constitution

;

•

membership from Thomas Graham, Bankers Bond Co., President:
1.

;

ties

and

tentative forecast that

commodities,

3. Increase number of Nominating Committee from five to nine. The

.1 President to appointeight

numbers,

V 'v '

7.; ■]' r

■'

4. The Executive Council be enlargedto include Resident Or
-Vice^
'President of each affiliate (by choice of its oton members), to-

,r!

gether with the officers and retiring President, and that the
name "Executive Council" be changed to "Board of Directors.'*

Ten members of the Executive Council (or Board of Directors)

shall constitute
5. There

at any meeting thereof.

a quorum

shall be

added

the

of these

permanent committees of NSTA

have

ance

of official

Corporate
Each

after

Advertising
Publicity

committee

shall

consultation

have

with

Government Bond 7

•

the .President-of

•

This committee

shall

■

Council members shall be
affiliate shall be
-

the-affiliate.

Two

appointed from the individ-

•.

•

;

have

forecasts
the

6. There shall be added to the permanent committees a committee
in charge of the "Bulletin"—the
official publication of the
NSTA.

Vice-Chairman;

Chairman,

members of the committee may be

H /'tual membership

Educational

support

•

rather

of fertilizer and

and

use

cover

conservation
disease

tributed
tion. '
that

control,

The

of price
of

restraint

and

crops

and

better

member of this

*•.

•'

•

Request

i'lX' ■'''■/

•'

'■*

•,

••

•

'Mi

ADAMS & COi
231

SOUTH

SALLE STREET

■y/7;. CHICAGO

4, ILLINOIS

TELETYPE CG 36!

PHONE STATE

Aeronca Aircraft
*

Decker

010^

with
just
average
production of market¬
able farm products after the war
than it

was

Old
*

„

(Continued

1295)

Ben

Coal

Corporation

Mastic Asphalt Co.
*

Miller

Manufacturing Co.

Seven-Up Texas Corp.
St. Louis Public Service Co.

production has

on page

Inc.

Long-Bell Lumber Company

Trailmobile

increased it tends to remain high.
.

Hydraulic Press Mfg. Co.

to 30% greater

before the war,. Once

Corp.

Manufacturing Co.

Howard Industries,

con¬

weather,

the level of farm

one

7 -./, //f

J Circular

even

later

than

lime,

heavy farm produc¬
Department has said

will be from 25%

Common Stock

practices, pest

feeding of livestock have all

preponder¬
well as private

sooner

thq excellent
the current

"Detailed
••

Chairman,'the Executive
ex-officio, and the President of each

Company

analysis available
V

••

•

request.
-

•

COMSTOCK & CO.

committee.

CHICAGO 4

United Transit Company

Special Executive Committee which shall be appointed by the
President.
There shall be a Chairman, Vice-Chairman, and a

maximum of five individual members.

that

...

a
.,

use

creased

the

problem may be

7. There shall be added to the permanent committees of the NSTA

come,

improved crop varieties, the in¬
other

ing

ally

Municipal

creased

bumping against ceil¬

Chairmen, and at least five members. % A representative from

„

ter than average weather.
Shifts
from animal to tractor power, in¬

commodities, particularly

each affiliate shall be appointed on each of the above committees

the following:

for

•

ably not-more than one-fourth of

prices, with reports of sub¬
stantially
higher
than
ceiling
prices in black market transac¬
tions, recently futures trading in
major grains has been at less than
former ceiling prices. Though the
turning point may not yet actu¬

...

the wartime, increase in farm pro¬
duction can be attributed to bet¬

Whereas earlier in the year
were

solely

prospects

•_

The Department of Agri¬
culture^ has estimated that prob¬

crops

corn.

-7.

...

season.

this year and the
concurrent
partial recovery .of
production in foreign • countries
have brought about a fundamen¬
tal change in the market action
corn

rely

crop-

The prospects for record wheat
and

grains

not

products. According to the article:

Nominating Committee e^ch'year;

•

;

This view of the outlook does

Corporation i

September issue of "Business Comment" published by the
Northern Trust Company of Chicago, contains some
interesting state¬
ments concerning the future levels
of prices of agricultural commodi¬
priqe rises' for numerous farm

to 11; instead// of
imposing
price re¬
electing four by vote of National Committee instead of two as straints, as at present, it may be
at present.
found necessaryto restore prewar
2. Retiring ex-officio member of- Executive Council to be Chairman price supports of important farm

Trading Market in

Z&M ",/';/;/

The

Increase/Executive*/Council!ftSTA7^members:froih^Thine

;

Treasury and points out that once
level of farm production has increased, it tends to remain
high.

CONSWTKTIONAL

The following
of the National
Security Traders Association will be officially presented for vote of
the National Committee in September, according to a letter to the

Company of Chicago holds high farm output may
change trend toward price support rather than price restraint.; Says !
policy of maintaining parity prices of farm products could involve a
tremendous burden to Federal

Tele. CG. 28

ji
Terminals !'

■/./•

Northern Trust

-v.

National

Support lor Farm Commodities

Also

membership awaits the highly
President^ Edmund J. Davisi

Chicago 3y III.
Tel. STAte 4950

Active

thethewl^

Gratuity Fund;

135 South La Salle Street

(2)

All Past Officers,; (3) Chairmen of all Committees,
(4) All Officers and National Committee members signing the present
Constitution in 1936 at Los Angeles
Convention, where same was
adopted.
y
!

for

be elected, six

are

KITCHEN & CO.

The session of the National Committee will be executive.
Invited to
be present, in addition for advisory
purposes, are (1) Presidents of

A^77//77777y;77/

Common

—

So. La Salle St.

231

Dearborn 1501

Teletype CG

955

DEEP ROCK OIL

PETTI BON E-MULLI KEN

Cony. 5% Preferred

LOS ANGELES TRANSIT LINES
-

H-r

;

Macfadden Publications

BOUGHT
—

Gisholt Machine

SOLD

All Wisconsin Issues

* TENNESSEE GAS & TRANSMISSION

v.
-

Prospectus available

upon

request.

v"7

Prospectus

■

Member—CJhicago Stock Exchange

AiCAIIYN«®<^

INCORPORATED

135 SOUTH LA SALLE STREET

request

HOLLEY, DAYTON & GERNON

DOYLE, O'CONNOR & CO.
-v

upon

105

Incorporated

Teletype: CG 1200

Chicago

/New York

Boston

'r Milwaukee i/i Minneapolis

La Sadie

St., Chicago 3, III.
Central 0780

Offices in Wisconsin

CHICAGO 3. ILLINOIS
Tekpfaonet Dearborn 6161

So.

CG 262

Eau Claire

Omaha

Fond du Lao

Madison

La Crosse

Wausau

THE COMMERCIAL & ;FINANCIAL CHRONICLE

1272

determine'd last February

PHILADELPHIA

Western Light & Telephone
a

Gruen Watch Co.

Soon
as

Eastern Corp.

•

Memos

Request■'

become

;

dividend
to

independent operating company
result of distribution of its common stock by National Power &

completely

Light Co., Pennsylvania Power & Light Co. is receiving increasingly
widespread investor interest.
•,//■•
The common stock, actively traded on the New York and Phila¬

delphia Stock Exchanges, lends itself readily to comparison with long
popular Philadelphia Electric Co. common stock as follows:

BUCKLEY BROTHERS
York, Philadelphia and
Angeles Stock Exchanges

Members New
Los

Street,

1420 Walnut

enna.

Los Angeles
Haserstown. Md.
Telephone—WHitehall 3-7253;

Private Wire

Philadelphia, New York and Los

& L

Philadelphia

System between

Angelas

1421 Chestnut
Phila. Phone
Locust 1477

•

satisfactorily, this large, indepen¬

50 %

about

lies within

200-mile radius.

In¬

arising

,-;

and

rate of return

1945,

should

CERSTLEY, SUNSTEIN & CO.
and

Phila. Stock Exoh.

Members New York Curb Exch.

New York

(Assoc.)

Phone

;

Bell System Tel.
PHLA 591

Tidewaterl
Power Co.
Common

-y/'-Vv

stabilizing

fact

re¬

to■ coal
influence

that about

rived

LEWIS C. DICK CO.

Other important basic
served

National

debt

first
also

except

They

may

anticipate further growth in earn¬
ings as the full benefits of tax

savings, refundings and reductions
in

operating costs from

ment

equip¬

new

• f

Philco

Corporation

Ballantyne,

Philco

Corp.,

President

reported to stock¬
company's oper¬

holders that the

ations

"took

decided

turn

are

industries

steel, cement and tex¬
noteworthy, however,

for

the better in the second quarter of
1946."
1
'
An

operating profit of $164,787
was reported for the June quarter
despite the fact that the radio
manufacturing division was forced
close down in the latter part
April and early May in order
to accumlate parts for production
purposes.
In the first quarter,

operating

was! reported

loss

N.Y. Phone REctor 2-0037
205

service.

operating

For

the

30, 1946, only
revenues

Philadelphia Electric
Col The systems of the "pool" are
interconnected
by
high-voltage

lines

and

serve

central

Pennsylvania,

ern

Delaware

and

New

the

The

paid

vania, is considered to be highly
desirable from thle standpoint of

and

declared

company

dividends

the

and

rate

End

The

Jersey,

Baltimore-

Washington area. Total peak ca¬
obtained
from
gas
service and
pacity is about 4,250,000 kilowatts.
1.8% from steam-heating business,
Dividends
compared with 93.6% from elec¬
sales.

in
charge - of
manufacturing of The Budd Co.
*

'!';•;'!!!•;"'V;!f

the Line?

Those balky, recalcitrant under¬
of the Pittsburgh Railways

lies
Co.

system,

who

have

success¬

fully defended their rights as cor¬
porate entities for almost 50 years,
and in so doing have blocked at¬

reorganization

tempts

cents

per

July

such

1946/ the

April

amount

dividends having been

which

haps

preferential

prices,

Philadelphia

Receiver

that city

announced

tions

during

court

decision

and

ruled

that

interest" the un¬
could and should be

"in the public

Valuation and

Byliesby & Company

derlies

Appraisal

RAILROAD EQUIPMENT

brought under court jurisdiction

CERTIFICATES

PHILADELPHIA OFFICE

for the

tion.

monished

Valuation and

Stock Exchange Bldg. Phila. 2

Appraisal

CITY OF PHILADELPHIA BONDS

the

has operated
under 77-B since 1938, that it

ways

Tele. PH 73

of reorganiza¬
the court ad¬
Pittsburgh Rail¬

purposes

Moreover,

Co.,

could not

which

expect to conduct its

tax collec¬

$6,505,493

were

the

first

greater
months

seven

of 1946 than in the correspond¬

ing period last
year

917,311

against

the

end

Merger
Trust

Broad

Co.,

both of Philadelphia,
$50,000,000 banking insti¬
tution, is expected within the
into

next three months.

•

R. W. Brown, President, Read¬
ing Company, announced that the
road

had

placed

American Car &
General

orders

"v '!/''!! Y'
!

Copies

V^Y^YY'V!'.

Electric

Co. for 16

cost of

used

$1,753,500.

They will

supplement

present

equipment in Reading's electrified
suburban territory.
The

month

"stone-cold
and

August

in the

dead

Pennsylvania

traders

dealers

shedding

are

Incorporated

;

SO.

demise

that

brought the Dow, Jones in¬

dustrial

the

barren

down

average

BROAD

STREET

1528 Walnut St., Philadelphia
New

York

Boston

Chicago

San Francisco

PHILADELPHIA, PENNA.

120 BROADWAY

Allentown

Pittsburgh

Reading

NEW YORK, N. Y.

12.37

duction
and

in the last week.
at

home

labor

lags,

and

increased

dend announcements.

Optimistic
consoled

thought

Scranton

Williamsport

Private

Street,

pro¬

resistance to higher

than offset good

ings reports

Un¬

inventories

traders,

themselves

that

the

earn-»

divi¬
r

however,
with

reaction

the
was

technically healthful and would
provide
base for

a
a

broader

and

firmer

hoped-for resumption

of investment interest.

INCORPORATED

Locust

for

abroad,

difficulties,

rise

consumer

prices

and

RAMBO, CLOSE & KERNER
1518

month

period, 8.56 of which decline

CORPORATE and MUNICIPAL

Pennypacker 0100

over

the

Incorporated
123

and

tears

STROUD & COMPANY

L H. Rollins & Sons

' lies

market,"

SECURITIES

Bought—Sold—Quoted

addi¬

tional electric passenger coaches,
to be operated as two-car
units,

Request

Harshaw Chem. Co. Common

with

Foundry Co. and

PENNSYLVANIA LEGAL BONDS

Rockwell Mfg. Co. Common

Street

Mid-City Bank &

Compilation of

Phila. Elec. Go. Common

the

and

total

$70,-

$64,311,818
1945* -

July,

Co.

Trust

date

The
was

year.

for this

including

Third District reversed a lower

Available Publications

Taxes, W. Frank Marshall, has

certainties

cuit

Company

current quotations.

took place

7, 1946, the U. S. Cir¬
Court of Appeals for the

treatment

equivalent, well above

those

recognize

fully

rights,

On May

Sterling Motor Truck

Phone Rittenhouse 3717

termined, but public holders are
satisfactory and per¬

confident of

may, in The near future,
find themselves at the end of the

not

did

in possession

are

cash,
or
equivalent, in the
neighborhood of $23,000,000.
In
the event of distribution, settle¬
ment or reorganization, claims of

line.

So. Colorado Power

out¬

Vice-President

east¬

was

Territory served, embracing 28
counties in east central Pennsyl¬

Empire So. Gas

H. M.

':hat the trustees

that all industrial power sales ac¬

Gas Co. and

Total

standing bonds of the system held
by the public aggregate
about
$12,000,000 and, it is pointed out,

the parent company, Philadelphia
Company, and of other creditors,
would have to be judicially de¬

realized.

are

Power

operating revenues are de¬
preponderantly from sales

electric

4.6%

tric

Warner

all

holders have awaited.

Light Co.'s distribution

months ended June
1420 Walnut Street, Philadelphia 2

Bell System Teletype PH

tiles.

with

ination

mortgage bonds.

rate of mining.

The Company's Business

PEnnypacker 5-1787

mines,

sales

power

arises from the

into

translated

growth require¬
may
look
forward' to
a
progressively in¬
creasing equity and to the elim¬

$2,569,471.
|§!
count for
only 38% of electric
Mr. Ballantyne stated that he
& Light revenues compared with 55% de¬
believed the company will show
common last month, the public ob¬
rived from residential and com¬
satisfactory earnings for the last
tained 682,013 of the 716,159 shares mercial consumers.
v!V ;
six months of the year.
Over ! 90%
of
the
formerly held by National. Eleccompany's
ric Bond & Share Co., subject electric energy is steam-generated
to SEC and court approval, plans in 17 plants having a rated capac¬
IJ; The Budd Co.
soon
to
offer
1,050,072. shares ity of 408,462 kilowatts. The com¬ !
Edward G. Budd, President of
Pennsylvania Power & Light com¬ pany also owns a 40,000-kilowatt
The Budd Co., has reported that
mon to its own stockholders on a
hydroelectric plant and several
unfilled
orders
now
exceed
one-for-five ratio at a price equal smaller
internal
combustion-en¬
$159,000,000 of which something
to $3.50 per share less than the gine
plants, bringing the total
over
$100,000,000
represents
closing market price on the date rated capacity of all generating"
business for the automobile in¬
specified. Assuming the exercise units to 453,339 kilowatts.
dustry and the balance com¬
of
these
rights, Pennsylvania's
prises orders for more than 600
Pennsylvania Power & Light
2,500,752 shares will then be owned Co. is an operating member of a
stainless steel railway passen¬
85% by the public, 4.6% by Elec¬
ger cars.
Warren H. Farr, Vice"power pool" comprised princi¬
tric Bond & Share and 1.4% by
President of the former Budd
pally of its own facilities and
National Power & Light.
Wheel Co., has been appointed
those of Public Service Electric &
&

Pennsylvania

Net

unanimous,

This, it is thought, may re¬
relatively swift develop¬
ments which long-patient
security
sult

l|g;;||g

St., Philadelphia 7, Pa.

WHitehall 4-2300

spect

actual earnings with¬

connection

Power

reserves

40% of the load is for pumping,

Common

total anthracite

which goes on regardless of the

able earnings.

Midland. Utilities

213 So. Broad

the

future

Stockholders

John

served by the company.

large

over

ments.

supports

area

in Pennsylvania are in territory

computed

program

suited

mining industries.

out exceeding the level of allow¬

Common

Members

The

Harrisburg

It is estimated that about 83%

Pub¬

its

Wilkes-Barre,

Pennsylvania
utility
now
a
greatly strengthened and
improved capital structure, well

rich agricultural sections and con¬
tains
important
manufacturing

rVy-

with

the cities of Allentown, Beth¬

lehem,

$2.68 per share on

proceeds

increased

Iowa So. Utilities

was

i;here is

vail.

the'

mies

entertain the ap¬
decision of the

the

Court

has

next few years, resulting .econo¬

Paid

will

Since

dent

lic Utilities Commission in

expansion

6%s

peal.
Circuit

allowable earnings are

Inland Gas

whether

.95

the common stock. As the com¬

1st

5.
Upon convening Oct. 1,
Supreme Court will decide

Yield

year's refunding oper¬
;

pany

to be maintained.

the

4.10

requirements;

last

Aug.

re¬

5.00%

and Lancaster.

;-V

fixed by the Pennsylvania

Teletype PH 257

Price

Elec.-

base and the 6%

Street, Philadelphia 2
New York Phone
HAnover 2-2280

fore the U. S. Supreme Court and
all briefs were filed on or before

strictions and at least this rate
is expected

1.20

On the basis of fair value rate

H. N. NASH&CO.

within the limit of dividend

appeal has been taken be¬

$1.20

are

ation.

60% of cur¬
earnings, is well

its

delay, '

Dividend

cluded in the company's territory

from

Pfd. & Common

3-6s 2039,

resents only about
rent available

order without

"or else." T■.

con¬

annual
rep¬

the

1.90

dividend

Philadelphia Transportation Co.

a new

This amount

set

1946

profits taxes and by the sharp re¬
duction in interest and preferred

Stocks

rate of $1.20.

was

aiffairs

1946,

Having settled its financial, reg¬
ulatory and accounting problems

sulting from the repeal of excess

strued to establish

shelter

told

$2.28

business, by tax savings re¬

new

per

Present

Approx.

Pennsylvania Power & Light Co. charted a course designed to
stock equity to at least 25% of capitalization
)y or before 1959, and further to^
utility operation.
increase the efficiency of its oper¬ public
Total
ations and earning power over the population of the service area is
next few years.! The program is approximately 1,735,000, and oneseing aided by the rapid growth third of the national population

Bank & Insurance

Oct.

and

court.

the*

$1.14

Current

build up its common

Philadelphia

payable

cents

perpetually under the

protection

-'1946

^■..r

Pittsburgh, Pa.

business

con¬

a
strong feeling that the
appeal will be dismissed and that
;he Circuit Court
ruling will pre¬

1st Half

Philadelphia 2

New York

N. Y.

Earnings
(est.) j

Earnings

existing
.The .increase
in

ditions.

Pennsylvania Power & Light Co.

iii the

light of the then

Pennsylvania Brevities

!
•

.Thursday, September 5, 1946

Philadelphia 2,

Pa.

telephone wires to New York and Baltimore

.Volume

164

Number4522

THE

Present

COMMERCIAL

Aircraft

Postwar Demand for
Capital
New

Manufacturing Industry
Industry—Present

"The Aircraft
Manufacturing
pects, ' by Col.
George

hensive study of its
kind that has
yet appeared.
New York Stock

most

compre¬

$2,800,000,000 in

Published by the

Exchange house
City, it appraises

York

startling information
velopment

the

de¬

til

""push-button" aerial

warfare.

able

expansion

which

occurred

the

during

years, when production
a total
volume of

the

from

$16,000,000,000

among

dustries

American

industry

1939

known.

mated

ists
of

ranked

greatest
ever

veloped by physicists

$900,000,000

has

for

total

•

1,000

American

manned,
practical

planes,

at least

atomic

35,000

seats, will be in scheduled
domes¬
tic

and

international

service

bombs

1948

and

orders

for

such
with

and

to
a

series

rent

the

thfe

most

Iron,

future

;

private flying.

The program

$500,000,000
over

for

the next

airport

seven years

ever, expected to relieve this sit¬

uation, as presumably about 3,000
new airports and
airparks will re¬
sult from

the program.

and

page-size

the New York Stock
a

Paper and

been

with

the

i nvestment

banking field,
having started
with

the

old

Guaranty
Company

in
after

1927

Hamilton D. Schwarz

with

now

Trust

joined

air

strict

economy should become the con¬
trolling factor in future Congres¬
sional
policy, national
be bought at

curities

cannot

power in all its modern
phases, he
makes the point that even
if

can

Company,

.t;;i

maintaining

security
cheaper price

585",

First

Teletype

half

Second

half

PH 375

half -,r
Oo

t
99

134

397

28 '4

COrtlandt 7-6814

,;f. 472

and

N. Y. Phone
'

100

6 7777 V

745'

.4-'
*-

51 "

have

59
'«

current

interest

>»;

•;c77

•

v..

utilities
_

7-"til'':,

2"''

1 '
>

15 7u

13
and

/■ 25

services.

Private
7

COrtlandt

PH SO

N. Y. C.

and

the

over

•"

6-;-

Trading Markets in

VINCO

1%.

Common

the

Guaranty

which had been the
affiliate

Company,
fcstabrook

ing with that firm

Mr.
<Sc

Co.,

se¬

Guaranty
Schwarz
remain¬

until 1939 when

became associated with
Lazard
Freres & Co. He
terminated this
connection to enter F. S.
Smithers
& Co.

r;!,

Silverware Ceilings
Suspended

9\; One of the features

of the silver

Senate

Appropriations Committee

"Chronicle,"

the

was

the

Established 1895

"compromise" worked

earlier

removal

this

summer,

out in the

<!ko.

reported

silverware.

Following is

& ©o.

Philadelphia Stock Exchange
Exchange BIdg., Phila. 2, Pa.

Stock

silverware. The House refused to
accept the compromise
containing
that and other
provisions. Now the OP A has
removed the
ceilings

% Jtttjtlet*

Members

ceilings y on the prices of

Telephone HAnover 2-4552

Bell System

Teletype PH 220

nage from
two-thirds, to three
fourths of total aircraft
produc¬
tion.
World War II

from

four

demonstrated tha'

six

years,

are

re¬

quired to develop a new
airplane
obtain mass production and
built
an

air force "in

was

being."

the. drawing

The B-2f

boards, in

' r.'v

•

the text of its
announcement:

Sterling silver flatware, includ-^
ing knives, forks and
spoons made

in the cost of

sterling silver, has been indefi¬
nitely suspended from
price con¬
trol, the Office of Price
Adminis¬

tration announced
Aug. 30.

ling

silver

holloware,

sugar

bowls,

from

ber,

price

control

pitchers and

since

1945.

ting
bases:

verware

sold is

silverplated,

ling silver flatware

ster¬

insignificant

Western Pennsylvania
Issues
Direct Wire to New York

required to grant in¬
creased ceiling to
individual man¬
ufacturers in addition to

Decem¬

(1) As the vast
majority of sil¬

Trading Department Active in

Aug. 1, 1946, increase
ceiling price of silver from

would

Today's action, effective
Aug. 30,
1946, has been taken on two

The

substantially increases the cost of
manufacturing this silver. OPA

boats, has been exempted

cream

Silverplated

71.11 cents to 90.5
cents per ounce

gravy

(2)

in the

Ster¬

such

living.

flatware remains under
ceilings.

CHAPLIN

permit¬

industry-wide increase.

(Amendment No. 50 to
Supple¬
mentary
Order
126—Exemption
and Suspension of
Certain Arti¬
cles „of
Consumer
Goods
from
Price

1946.)

and

■

Bell

(Assoc.)

61
Broadway
YORK, N. Y.P
Bowling Green 9-3987

NEW

System Teletype—PG

473 7,

Pennsylvania
and New

pennsylvania

new jersey

Dolphin & Co.

Municipal Bonds
1421

CHESTNUT STREET

Philadelphia
RIttenhouse 6-25S0

Teletype
PH

Fidelity Philadelphia Trust Buildimf

PHILADELPHIA

Jersey

Municipal Bonds

A. Webster Dougherty &.
Co.

PHILADELPHIA
2

Telephones:
-

;

New York

BOwling Green

9-8184

Philadelphia—Pennypacker
New
Bell

Exch.

/v'

MUNICIPAL BONDS

New York Curb Exch.

419 Wood Street

Control—effective Aug. 30,

f
.•

COMPANY
Pitts. Stock

PITTSBURGH 22, PA.
Grant 3900

V
.

'Members

N. Y. Stock Exch.

•

City

severa

Col. Woods
declares, th<
production of Army and
Navj
planes and winged missiles shoul.
constitute dollar-wise and
in ton¬

through modernized air powe]
by any other means. At pres¬

years,

7-1202

V,v4 t

necessarily add to totals because of
rounding.

tLess than one-half
million dollars of

8200

Phone

transportation,

and public
utilities
Wholesale and retail trade

St., Philadelphia 3

Pennypacker
•

112

.1
24

"t"' t:

7 :'7

stocks

boenn1ng & co.

7 :7 " 4

other

♦Stems do not

Common

.-4 '

/". -2

185

;

•

1606 Walnut
:•

243

So. Colorado Power Co.

•.

mi'%

gas

'7";7' 20

American Wringer Co.

transportation

Paper Co.

7
7

' '

and

than
ent

Southern Advance Bag &

.v. .3

___

products

iMi

glass
products

10 7

■

and

•

■

123

leather

_____

and

■

208
'

3
5

-iC

117

and

;

apparel,

Miscellaneous

long

Notre
Dame.
After six years

afford to neglect
adequate appro¬
priations
for

Philadelphia Stock Exchange
Packard BIdg., Philadelphia 2

1946

100

127

metals

products, printing

publishing
Stone,
clay,

has

very fast aircraft and winged mis¬
Col.
Woods
pointed
out

half

781

561

leaving; the
University of

Warning that Congress

half

First

342

Railroads

identified

by gas turbines

that their knowledge is
available to all of the Allied
nations, who are about to
carry
on in
these developments
where
the Germans left off.
,

Members

1945

First

205

(

products
allied

Construction

German scientists were
well ahead of
those of all othei
countries at the close of
the wai
in jet and rocket
applications tc

adding

Samuel K. Phillips & Co.

partner. #Mr.

jets."

siles,

Phila. Western RR. 5s 1976

during

general

Schwarz

from
large
through ^fighters

powered

products,

Communication,

Exchange,

flotations

Transportation Pfd.

Phila. Transportation 3-6s 2039

new

Air
Forces
bombers down

L—

leather

Electric

"the

•

mill

lumber

Phila. Warwick 2s 1956

period:

1946

Second

622

products

Textile

New York City, members of

plane under development for the

estate

"Non-war" industries''
Food, beverages, tobacco

Hamilton D. Schwarz has
joined
F. S. Smithers &
Co., 115 Broad¬

conclusion is reached that
"prac¬
tically every type of combat air¬

will

1945

Philadelphian 5.8s 1960

Phila.

Per cent of total

292

PG 498

Bellevue Stratford 5%s 1935

Corporations by Industry*

■

Air

way,

security

•

Hamilton Schwarz

military planes
winged missiles is the subject
searching analysis, and the

Army

real

Hotel

\/-

well

momentum

postwar

'/'*i

Chemicals and allied
productsPetroleum products

S. Smithers Admits

;

•

■

The outlook for

•

and

non-ferrous

Mining

re¬

projects
is, how¬

money

the

Nonmanufacturing

cently announced by the Civil
Aeronautics
Administration, call¬
ing for Federal expenditures of

gathering

steel,

table, compiled
Research Department of

curity flotations,

war

Machinery, including electrical
Transportation
equipment
including
automobiles

deter¬

expansion

follows:

half

products

pri¬

airport situ¬

serious

"War" industries

already photographic reproductions of the
placed
manufacutrers, ex¬ latest type of light and
ceeds all
heavy
expectations, according
planes, helicopters and rockets.
to the
author, who regards the
ation

Teletyp#

Court 2380

following

the

291

aircraft

general overcrowded

'''

Manufacturing

mos

Telephone

BIdg.—Pittsburgh 19, Pa.

new

-j

Rubber

public

ivVv,c

Members Pittsburgh Stock
Exchange

Union Tr.

Bank, shows by industries1 the
raising of new capital through se¬

Nonfinancial

volume, which

the

;

guided

■

The

First

Industry
Total

un¬

rest

and

\ '

Finance, Insurance,

\ ^

available

copy,'.is

of atomic

use

seem

A feature of the

the

C. S. McKEE & COMPANY

flota¬

(Dollar amounts in
millions)

l^t',

man¬

In this

security

ty.;\7vv;-;v;yt,

postponed
replacements of

<->',>

RETAIL DISTRIBUTION

money purposes, at
1.4
billion, reached the greatest
volume since the late '20s or
early
'3°s.

ended

and

TRADING MARKETS

was

recon¬

rapidly growing
air lines, 15%;
fcompanies, 5%;

corporate

tions for

under¬

tries, the remaining 22%.
period

New Capital
Issues of Domestic

any future
likewise de¬

aircraft

missiles."

heavy postwar demand for
private planes, reflected in
50,000

would
on

likely to be

carriers

bombs,

marily

late

are

was

12 V months

general

and expansion of all other
indus¬

' one-third;

additions to

"long-rangt

manned

newly-organized

financing

the

industries,

defense against

fense against future

thatwith a load
factor of
only 66% an operating
total of 20 billion
passenger miles
will be attained
by that time, * r •

the V-2 and the

As to

approx¬

capacity of

capital

can

aircraft,' either

the

reconversion and
additions in

/
the atomic
bomb, he ex¬
presses the view that

350
transport
about 6,600
seats,
were in service
prior to the war.
Col. Woods
estimates that

industries,

■

develop¬ June, 1946, is weighted

weapons, and no
afford to forego the
necessary expense. for basic and
applied research to that
end," the
author declares. -

with

imately

new

supersonic

country

Approximately

with

these

capital needs

conditions,

major purposes, for which

taken

require highly ingenious

and

greatly strengthened
financially from wartime earnings
without a comparable
increase in
r

for

such weapons as
A-9 will

is still
nearly four times its pre¬
size and

planes,

Many

scientists

are known
to be
carrying
their work in the
Allied coun¬
tries.
"Adequate

war

•

years.

war

German

during the

capital has

The

chem¬

ments

1946, the industry

capitalization.1

former

business

ufacturing industries, one-fourth;

;

WESTERN PENNSYLVANIA

year.

productive facilities in other

very strong cash position in
the
face of unbalanced
inventories and
labor disputes.

esti¬

down

during the
the

responsible

the

world

Now, with the

production

in¬

become

the

former,

and

review

Commercial

Fed¬

previous prognos¬
tication made
by the Department
of Commerce.
The Bank ascribes
this
unanticipated
demand
to
management's desire to maintain

the hands of
Russia, and
various
other
jet-propelled
rockets and similar
missiles de¬

significance of this
growth is
emphasized by the fact
that aircraft
manufacture

forty-first

of the

Bank's

potentialities
V-2, the A-9, a

Reserve

business and
credit
such demand for
new
far exceeded a

un¬

enormous

German

York

eral

the

five years

The

the

now

stantial. According to the
Septem¬
ber issue of the
New

*•••

winged adaptation

war

rose

$250,000,000

1939 to

later.

position

war, its demand for funds
version period has
been very
sub-<f>

chapter on "push-but¬
warfare, Col. Woods empha¬

sizes

industry

Although .the financial
strengthened during the

the

ton"

Col. Woods traces
the remark¬

ready for actual combat

June, 1944.

Surprisingly Large

capital far exceed government's
previous estimates.
bank loans have risen

of
White, Weld & Co., 40 Wall
the prospects of the
whole and of
industry as a
aircraft
manufacturing stocks in general,
individual positions of
analyzes the
over
30$
companies
engaged in the produc¬
1939, but even under the stress
tion of
aircraft or aircraft
parts and
and also
urgency of war could not be
furnishes some rather
made

Street, New

1273

York Federal Reserve
Bank states reconversion demands for

and Future Pros¬

Bryant Woods, is
perhaps the

& FINANCIAL
CHRONICLE

4649

York—-HAnover 2-9389

System Teletype—PH 299

THE

COMMERCIAL & FINANCIAL

Thursday, September

CHRONICLE

5, 1946

rate payable on

savings

1274
and retirement funds, and the fact that the
bonds rises the longer they are. outstanding.

Peter McDermott

mitted

ffOur

McDonald

Admits J. J.
John J.

Co.

McDonald has been ad¬
general partnership in
/, the New York
Ex¬
firm of
Peter P. Mc¬
Dermott &
Stock

By JOHN T.

The substantial

;

which carried many

change

new

whether

and its

N ew

process

way,

York City.

Mr.

adjustment... //. The. market

months

ciated

asso

for
^with the '1 firm
the past
17

years,

President
the

Cashiers'

McDonald

St o ck

■''*'///

Ex¬

This

previously reported
"Chronicle" of Aug. 22nd.

Nevertheless, there had to be others
the market at that time to carry these obligations

that time.
in

for the sharp price

responsible in some measure

been

have

Firms, and Secretary of
the Wall Street Gold Association.
Mr.
McDonald's admission to
change

were

attained.

interest rates is the pos¬
they might increase rather than
decrease the volume of currency and deposits. . . . This would
result if investors reacted to higher rates by expecting that they
might rise still more and thus withhold putting funds to work..'./

rise at

R. McRee Davis VP

still believe
sizable vol¬

tered, the market has moved down to levels where some
they are not yet deflated enough to warrant purchases in
ume.
The feeling is still quite prevalent that further
.

Texas Bank & Trust

and Manager

of the bond

price de¬
will have to
in these

the over-all cost of

STRONG MARKET

district

Certainly

held
of

trend of the

The future

increasedJhe cost of
%

debt cost of the government has been rising since June
1945, when the over-all interest rate was 1.936%, compared
1.996% on June 30, 1946. . . . This is due to special Treasury issues
mond W. Young has been appoint¬ bearing higher rates that are being sold to government social
ed manager of the firm's trading
department.
1

However,

with

security

Government securities

markets will no

investors,
of a new
issue and the kind of new offering that will be made, (2) the trend
of bank loans, (3) the amount of short-term holdings by the banks,
(4) the trend of excess reserves of the banks (5) and use of credit,
governed by (1) the action of non-bank
guided in their purchases by the possibilities

doubt be largely
who will be

controls by the monetary

;

authorities.

...

opinion of some money

It is the

war

CHICAGO, ILL.—Remer, Michell & Reitzel, Inc., 208 South La
Salle Street, announce that Ray¬

is;

FACTORS

TREND

from % % to 2

ESSENTIAL

uncertainties have been eliminated. . . . There seems,
developing that the conferences that will be
in Washington this month will do much to clear the air of many
these factors of doubt. .V.

of large fi¬
this is
years Mr. Davis was a member
of James, Stayart & Davis, with¬ supposed to be the great cure-all for inflation. . . . This has created a
drawing
from
the
investment feeling among investors, that it would be well to wait and see
business in 1942 to conduct a fly¬ whether the Treasury will adopt a program of higher interest rates to
The market has continued to drift lower/ and
ing school in connection with the combat inflation, ;
effort.
•
'
"
the Treasury has shown no concern up to now about it; because -it
has not affected their ability to borrow at rates as low^ as\ during the

•

«•

■

to be a feeling now

The- demands for higher interest rates on the part
nancial interests is probably one of the main factors, because

Raymond Young Trading
Mgr. for Remer Mitchell

of the existing

period.,. ... . The market decline has not
financing and it won't as long as rates ranging
are still the pattern. .

■*

the
government,
it,
,government
put the,
all.

about

war

and be-;

dropping and reactionary government bond market
not conducive to confidence for either business or individual holders
of Treasury issues. . , . It is believed in some quarters that
monetary authorities, who put the speculator into the
bond market, and now have him pretty well shaken out of
may
now be showing some concern over, the current trend of
bond prices. > , . There appears to be a definite desire
market on an investment basis, which would be beneficial to
concerned.
Nevertheless this cannot be accomplished until some

be this great bearish feeling in the finan¬
long-term government obligations? . ..It
probably can be attributed to any one of a dozen different rea¬
sons, many qf which may never materialize... ,
/
cial

had such a sizable reaction
carrying the debt has risen. . . .

securities markets have

cause

Why should there

depart¬

Bank & Trust
Company, according to an an¬
nouncement by P. B.
Garrett,
President of the bank. For eight

ment of the Texas

;

some-/

ment

clines, ranging from orierhalf to a point in some issues
take place before there will be a wide-spread buying interest

DALLAS, TEX.—R. McRee Da¬
obligations.
vis
was
elected Vice-President
'

all-time highs were regis¬

of time since the

-•*:

though the money managers may be changing
toward the money markets, now that the govern-*

It seems as

In the short space

against higher

what their attitude

STILL LOWER?
v

Another argument

the firm was
in the

eased the financial;

sibility that, in the short run,

than speculators
to the levels that

of the war, has

stability which, since the end

tion....

generally
five

recession for government bonds, which are sup¬
relatively stable securities. '. • .
" *•
sure, there was speculation in these securities, which may

To be

business.
adds to

confused
the

is still very

price

sizable

INFLATION

problems of reconversion, both for the government and
. . . ,
Likewise, it was pointed out that stability of the bond market
business confidence and is an important factor in aiding produc-;

posed to be

ciation

ago

that

was
quite prevalent then that there were very good possibilities of gov¬
ernment securities continuing the advance.
*
;
/ /
It is evident now that the market was over-optimistic at that
time, because prices have declined more than four points from
the year's highs made the early part of April/. . . This is a

Section, AssoJohn J.

the question as to
market have about

carried prices too

who has been

•

decline in bank-eligible bonds in the last month, ji /. The reasoning back of this view is that a policy of tight money;
of these issues, and some of the restricted bonds, would interfere with the stability of the government bond market, -

unstable conditions, .which in the past have
far in both directions. . . . It was only about
that prices made all-time highs, and the opinion

created

has

/. *

Also it is reported that the Treasury is not so sure now
higher interest rates would be as anti-inflationary as many have been;
predicting. .
It is believed that the monetary authorities now hold
the opinion that a "tight money policy" might stimulate inflation,,
.

psychological condition is poor, largely because it is in
of transition from wartime to peacetime financing. . 0. .

McDonald,

CHIPPENDALE, JR.

lows for the current-move/has; raised
these securities and the rest of the

completed their

Broad-

Co., 65

INTEREST RATES AND

Governments"

Reporter on

market experts that quan-

in the past,

titative credit controls will not be as important as
since it would not he feasible to use these devices at this time
because of the large amount of money in the hands of the
public.//.

/;/

which;will be carried out principally
have to do with new issues, restrictive provisions

Quantitative credit controls
by the Treasury

will

Qualitative
Reserve'authorities
evidenced recently by.
the borrowing

securities and the debt retirement program. . . .
controls will be used within limits by the Federal
to curb inflationary tendencies. . /. This was
the changes made in Regulation W, which reduced
time for instalment loans. .

for these

"ELIGIBILITY" PAINS

the middle;
by nonwill be
much*
expected not so
Because of the declining trend for the bank eligible
In the past year sell-offs in corporate stock issues left high grade long ago.
real estate bonds undisturbed with markets almost completely on obligations, holders of the soon-to-be-eligible 21As of 1956/59, have
been taking advantage of present prices for this security and re-"
the bid side.
However, the precipitous decline in the market on
Tuesday resulted in a corresponding shrinkage in bond prices, rais¬ investing the proceeds largely in the 2%s of 1959/62. ;
The 2j/4%

due 1956/59,

which! become bank- eligible

has been under some minor selling pressure'
bank investors, who are not so sure now that there
as
demand for this issue from the banks as had been
of this month,

REAL ESTATE

ing yields to what

SECURITIES

ridiculously high levels.
solely of first mortgage fee
bid price and interest payments

might appear to be
the current

bonds and indicates
over the past year.

Approx.

Bid

*81
*70—

Broadway-Npw

Broadway-Trinity

BOUGHT

—

Interest

/Paid
•3%
3.25%

75
///

Gov, Clinton

*82

60 East 65th Street

...

■

Textile Realty

SHASKAN & CO.
Members New

40 EXCHANGE PI., N
Bell Teletype

.Y.

320 E. 57tli Street

/«.

261

74
*80
*112
70

6.68%.:
5.75%

r'4%;

group

debentures, due

debentures

6.50%

NY 1-953
*Bonds trade with

equity stock.

Commodore Hotel, Inc.
Fred F. French Investing

California & New York

Tudor

Real Estate Issues

i,
15S Montgomery

St., San Francisco

Lubetkin & Co.

Incorporated
Members New

EXbrook 8515

City—all units

Waldorf-Astoria Hotel

]. S. Strauss & Co.
Tele. SF 61 &

Pfd.

York Securityr

Broad Street, New York 4

Deqlers Association

Wtv

HAnover 2-2100

final step in

the financing/ the

to issue and
date
approximately $50,-

corporation proposes
offer to the
an

..issue

public at a future

stock.

000,000 of new preferred
,This phase of the program

are

Sept. 1, 1971. The
priced at 100 V2.

currently outstanding
of $80,000,000. -

loans,

the amount

for plant expan¬ (approximately $132,000,000 of
re-arrangement, and for which about $95,000,000 represents
increased
working capital
re¬ the cost of new facilities and
quirements to meet anticipated equipment, and the balance, the
cost of re-arrangement and re¬
peace time production loads. Pro¬
lated expenses. Up to May 1, 1946,
ceeds from the sale of the de¬
$35,000,000 had
bentures will be added to the cor¬ approximately
been expended in this connection
poration's general funds and used
and it is expected that approxi¬
to finance expenditures in con¬
funds

sion and

Markets:

;

Westinghouse's outstanding pro¬
This
offering
constitutes the
first step in a comprehensive con¬ gram, begun in 1945, involves a
total
estimated
expenditure of
templated financial program to
provide

Firm Trading

siz¬
de¬
were

is sub-,
.of 54 underwriters,
headed by Kuhn, Loeb & Co., is ject to approval by stockholders.
offering today (Sept. 5) to the With the proceeds from the pre¬
public a new issue of $30,000,000 ferred stock the company plans
Westinghouse Electric Corp. 2%% to retire the balance of bank
A

*93
*84

Fifth Ave

Wall and Beaver

Dlgby 4-4950

3.75%

2 Park 1st-/-

Exchange
York Curb Exchange

Members New York Slock

Realty—*79

Sherneth

Chicago member in- •

i
a

Offers
Westinghouse Debs. /

■

Rytin loeb & Co.

Industrial R. E. Trust

banks and the

buyers of government bonds in fairly
able amounts in the last three weeks, during the period of
clining prices. ... It is reported that these commitments
confined largely to the shorter and intermediate term maturities.

London Terrace,

QUOTED

City member

stitutions have been

6.75%

94
75
*80

Industrial O.

BUYING

New York

4.70%

*75.

Film Center
Fuller Bldg.—..__„

SOLD

BANK

following tabulation consists

The

nection

with this program.

Subject to market conditions,
the corporation expects to offer
in the near

of common
to

future 1,647,037 shares
stock for subscription

its present

mon

from
duce

preferred and com¬

stockholders. The proceeds
that sale will be used to re¬
outstanding. bank loans. As

mately

$46,000,000 additional will
before the end of
and about $51,000,000

expended

this

year,

thereafter.

debentures will have
the benefit of a sinking fund, to
begin Sept. 1, 1952, designed to
The

retire
of

the

new

$750,000,
issue

principal amount

annually thereafter;

.Volume 164

;

have

become

associated

(Special to The Financial

with

M. Fishman has been added to the

staff of Atwill & Co., 605 Lincoln

was

Road. He
LOS
to

Charles E.

LOS

to The

the

staff

Bailey & Co.,

ties

Penobscot Building.

of William

Company,

DeClercq

has

Keane

with

(Special

associated

Company, Penob¬

LOS

Building, after serving in the
Navy. In the past he was
with S. R. Livingstone & Co.

to The Financial

& Lester.

LOS

Chronicle)

ANGELES,-CALIF.

—Ed-j

F. Claybaugh

to The

Financial

DETROIT, MICH.

LOS

ANGELES,

ton V A.

Beall

Chronicle)

affiliated

LOS

■;

Penobscot

Marxer

with

Co.,

Building. In the past he was with
Van Grant &r Co.
(Special

Spring Street.

with

ert

ANGELES, CALIF.—Rob¬
Belden

and

Roy

Financial

Company,

(Special

to The Financial

MINNEAPOLIS,

—

Fred¬
The
East

with

207

with

Chronicle)

asso¬

Goldsbury

and

Loomis

(Special to The. Financial

Co., 210

& Co.,
Schramm, Eddels & Co.

to The Financial

26 V2

Co.,

(Special

to The Financial

Chronicle)

MINNEAPOLIS, MINN. —John
H. Rothgeb is with Johnson, McKendrick & Co., Ill Loeb Arcade.

son

Building.

Higgins,
-

(Special to The Financial Chronicle)

Alexander

-Brown has become associated with

G. II. Chance & Co., Helm Build¬

ing. Mr. Brown was formerly con¬
nected with Andrew W. Quinn and
prior thereto for a number of
years was with H. R. -Baker &
;Co.
.

(Special

WE ANNOUNCE WITH PLEASUKE THE OPENING OF OUR

Chronicle)

to The Financial

LEWlSTON, MAINE

—

Carl F.

Getchell, Jr. has become affiliated
with Morton, Ilall & Rounds, Inc.,
Main

226

Street, after serving in

the IT. S. Navy.
(Special to The Financial Chronicle)

LOS
rence

ANGELES, CALIF.—Lau¬

K. Reynolds has been added

the

staff

Conrad,

Bruce

(Special

DOS

to The Financial

DALLAS, TEXAS, OFFICE

Co., 530 West Sixth Street.

•

■■

•

■

Chronicle)

>v-

-fc' ? * 'Jri.1

>«' f$

•

;

V l?

' ?>'•

YiWO

ANGELES, CALIF,;

George L. Carey is

connected

now

BUILDING

305 FIRST NATIONAL BfiNK

with Crowell, Weedon & Co., 650

South Spring Street.
(Special

The

TELETYPE: DL 294

TELEPHONE: RIVERSIDE 2061

Chronicle)

Financial

LOS ANGELES, CALIF.—Fred
W. Reeve is associated with First

■

California

South

650

Company,

Spring Street.
(Special

LOS

Chronicle)

The Financial

ANGELES, CALIF.—Frank

II. de Breaulieu is with Flynn

Levitt, 411 West Seventh Street.
(Special to The Financial

LOS

Chronicle)

ANGELES, CALIF.—Hans

Klehmet II has become

JACK S. GARLAND, Resident Manager

affiliated

with Gross, Van Court & Co., 639

South Spring Street.

■

ANGELES, CALIF.—Ray¬

mond

Hartney

with

•

■

-v

•

LEWIS F. LYNE, Sales Representative

(Special to The Financial Chronicle)

LOS

Hill

Richards & Co., 621 South

Street.

Spring
previously with

was

Franklin Wulff & Co.

(Special to The Financial

LOS

Chronicle)

ANGELES, CALIF.— Al-

leyne C. Grubb and Robert DeW.
Tucker

have

become

Ilutton

Spring Street.
-

(Special

LOS
*

Co.,

to The Financial

W. Byrnes. Jr. is

South
-

ANGELES,

rill •;.! Lynch,

connected

623

Chronicle)

CALIF. —Ira

now

Pierce,

with Mer¬

Fenner

Beane, 523 West Sixth Street
(Special to The Financial

LOS

bert

Katz
&

Co.,

325

Street:

(Special

LOS

West

Eighth

Chronicle)

Smith has been added to
of

Francis

Nixon

Co., 607 South Hill Street.
(Special

LOS
ney

The

Financial

Chronicle)

ANGELES, CALIF.-^Syd-

W. Bell is with Paul D. Speer

& Co., 458 South

Two Wall St., New York City

:i:i

to The Financial

staff

322 Union St., Nashville/ Tenn.

ANGELES, CALIF.—Wil¬

liam J.
the

with

now

EQUITABLE! SECURITIES CORPORATION

Chronicle)

ANGELES, CALIF. —Al¬

Morris

•

Spring Street.

New Orleans

Knoxville

Chattanooga

Hartford

Central

Bank

(Continued on page 1296)

'333 South East First Avenue.

—

Chronicle)

OAKLAND, CALIF. — William
N. Barlow is with Wilson, John¬

LAUDERDALE, FLA. —
Claude M. Ewing has joined the
staff of Thomson & McKinnon,

FRESNO, CALIF.

Minnesota
V
.

FT.

North

Street.'

Chronicle)

to The Financial

Chronicle)

ULM, MINN.—R. L. Carl¬
is with State Bond & Mort¬

gage

Co;, 807 Marquette Avenue.

with Fox, Castera

was

Avenue.

(Special

Co., 807 Marquette

Goldsbury

—

Street. In the past

Chronicle)

Reiersgord is now with J.

son

MINN. —Ed¬

has become

J. Miller

ward

Chronicle)

CALIF.

Fairman &

West Seventh

(Special to The Financial Chronicle)

LOS

to The

ANGELES,

nected

connected

Gordon J. Young has become con¬

Rollin J.

—

Jeppesen

to The Financial

MINNEAPOLIS, MINN.—Ruben

Chronicle)

NEW

with

•

(Special

CALIF.—Wil¬

ler & Co., 453 South

become

has

Milwaukee

Buckley Brothers, 530 West Sixth

liam Hart is with Bateman, Eich-

Furbeck

MILWAUKEE, WIS.
erick

ciated

Chronicle)

to The Financial

(Special

(Special to The Financial

Michigan Street. He was formerly
with the Wisconsin Company.

(8pecial

& Co.

ANGELES, CALIF.—Graf¬

I Street.

Co., 650 South Spring Street,

Chronicle)

Financial

Spring Street.
In the
with Battson, Barnes

•

ward B. Forester is with Weeden

scot

The

was

(Special

Robert A.

—

become

past he

Sixth

West

3923

formerly with Blair

Chronicle)

MINN. —Don
R. Kirby is connected with Thom¬
son
& McKinnon, 231 South La
Salle Street, Chicago, 111,

ANGELES, CALIF.—John

South

618

Securi¬

Chronicle)

(Special to The Financial

DETROIT, MICH.

Walters

MacConaty has become connected
with Bogardus, Frost & Banning,

ANGELES,

Street.
ft

Chronicle)

Financial

CALIF. —
Philip M. Seifert has joined the

Lawrence

—

A. Wright has been added to

staff of

(Special

Chronicle)

The Financial

wac

to The Financial

MINNEAPOLIS,

(Special

Henry

previous¬

Mr. Loomis

Street.

DETROIT, MICH.

—

ly with E. F. Hutton & Company.

Broker-Dealer Personnel Items

f;-

Chronicle)

MIAMI BEACH, FLA.

Blyth & Co., Inc., 215 West Sixth

1275

•

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

•

Memphis

Birmingham

Dallas

Greensboro

THE COMMERCIAL & FINANCIAL CHRONICLE

1276

wards

Henry Crosby Company
Resumes Activity
GREENVILLE,

MISS.

—

Mr. Crosby
president of the firm, Henry T.
Crosby Company, which will act
as
dealers in local stocks, mort¬

South Poplar Street.
is

and real estate.

gage loans, land
Associated with

Mr. Crosby as
Rhodes Wasson.

sates manager is

the

even

Among the poorer performances being turned in so far this year
Erie, and it has caused considerable surprise among
of the rail analysts.
Gross revenues have not been off too
spectacularly.
The decline for the first half of the year was less
than that experienced by Baltimore & Ohio and Nickel Plate, just
about on a par with jthe showing of Pennsylvania, and somewhat
than

wider

Central,

that

New

have

discouraging aspect of

For the half year

the

transportation ratio was
50.9% compared with 39.4% dur¬
ing the like period a year earlier.

1st 3s,

boom got un¬

der way, in 1939-1941, the trans¬
portation ratio had been averag¬
ing
only slightly above
37%.
Moreover, in June when many of
the ' other railroads were begin¬
ning to show some evidence of a
greater degree of control over
their transportation costs, Erie's
transportation ratio jumped to

Gatineau Power
1970

Chicago Railways

56.7%.

Cons, "A" 5s, 1927

This

was

than

may

any

On the whole it

ings

around

the

year

levels

Tork

Stock

the first

half

the

year

adjusted income available
charges showed a deficit of

120 Broadway, New York 5, N. Y.

with available income of $10,263,826.
Adjusted income available

$1,890,306

for

contrasting

charges

stance

used

before

taxes and after

Federal

sharply

this

in¬

income

eliminating cred¬

its for deferred maintenance and

TRADING MARKETS-

debits for amortization of defense

Armstrong Rubber Co.
Magazine Repeating Razor Co.
Universal Match Corp.
?

Dixie Home Stores

Berkshire Fine Spinning
Tennessee Gas & Trans.

ago

above

the level of the last half of 1945 it
faces

most

discouraging earn¬
ings
picture.
Pre-income
tax
earnings averaging at the level of
last year for the full second half
a

of 1946 would leave the company
a

deficit of close to $2,000,000
available for charges

income

before

credits

for the full year.

For
for

231 So. LaSalle St., Chicago 4, 111.

year

substantially

taxes,

come

tation costs.

and other
leading Security and Commodity Excha.
Exchange

fore amortization and Federal in¬

and before Federal

can

Erie's

MEMBERS
New

hold

may

hope to show profits
under such a burden of transpor¬

Ernst&Co.

and

even though
many of the roads,
including Erie, got off to a very
poor start in July.
Unless Erie
manages to boost its earnings be¬

road

amortization

before

Federal income taxes for the last
half

with

It is obvious that

reason¬

seems

able to expect that railroad earn¬

in
no

projects.
earnings

sections

sharp de¬

the

list.

The full details of July
yet available
so
it is impossible to say just
what accounting distortions there
are not .as

any

maintenance

income taxes

admit—long after

the

our

damage

been

done

to
—

liberties

that

has

among others, abridge
of; management under

the rights

of Mr. Reilly
note the danger¬

subversive

even

abuses

picketing which the Board has

encouraged

develop.

The

State Supreme Courts have noted
the
existence
of
picketing for
or "purposes." Even
Supreme Court in Dorchy v.

Kansas observed that strikes may

credits

would

have

the

one

ad¬

vantage of adding to the com¬
pany's finances even though as an
earnings prop they would be ad¬
mittedly purely temporary and
would certainly not in any way
influence investment feeling to¬

Railroad Bonds and Stocks

illegal.
"But," noted Justice
Brandeis, speaking for the court,
"a strike may be illegal because
of its purpose, however orderly
the

which

manner

it is

con¬

courts

and

courts

chancery

have ruled extensively and

cred¬

itably on issues of illegal picket¬
ing. In fact, these courts have
been our great shield and buckler
against the undermining of our
constitutional ; rights
through
abuses of picketing.

been

characterized by- mass

Teletype
NY 1-1499

front of the homes of individual
officials

attempt to incon¬

venience and discredit them.

keting

pflugfelder, bampton & rust

common
-

4-4933

New York. 6

Bell Teletype—NY 1-310

GUARANTEED RAILROAD STOCKS-BONDS

New York 4, N. Y.

Telephone BOwling Green 9-6400
Teletype NY 1-1063

-»v.

■>

-y. -/ <

When issued profits discounted
When issued losses assumed

;• J'.

Wabash Railroad

Members New York Stock Exchange
120

4Vz% Series b

•

tain

if it could not have cer¬

employees in the plant.

local

Court Scores Unlawful Picketing

During

the

case

which

Chancery before Vice Chancellor
Kays, the union made an effort
to

that the company had
complied with specific re¬
quirements of the National Labor
Relations Act and rulings of the
snow

not

National War Labor Board.

these

attempts

Chancellor

failed.
that

held

acts

courts

ONE WALL STREET
TEL. HANOVER 2-1355

82 wall street

of Securities Dealers, inc.

HAnover 2-0072

jr. c.

8
.

even

manner

bodily injury, "the
picketing here con¬
ducted
by the defendants was
not peaceful but was unlawful."
He observed, too, "substantial
irreparable injury
to the
complainant's property will fol¬
low unless the relief here sought
and

out that
property
right in its buildings and equip¬
ment, the preservation of which
requires that it be permitted to
bring into the plant such persons;
as it may determine necessary far
that purpose."
Thus it is an "un¬
lawful act" to dictate the number
of

non-striking

employees

per¬

company's
premises during a strike. Mass
picketing
in furtherance
of a
strike is not an inherent right of
employees and unions.
' v
mitted

enter

the

During recent months there has
considerable discussion of

been

the practice of picketing to
or

uphold

support secondary boycotts, no
if the picketing itself be

matter

BOND BROKERAGE SERVICE

co.

Member of National Association

Both

The Vice

threats of violence did not result

Specializing in Railroad Securities

Street, New York 5

Hartford

was

heard in the New Jersey Court, of

Common

1. h. rothchild &

noit-

Violence

Members New York Stock Exchange

UNITED PUBLIC UTILITIES

Tele. NY 1-724

ets standing shoulder to shoulder,
forming "a wall of human bodies'*

of the

GETCHELL MINE, INC.

Philadelphia

highs.

Mclaughlin, reuss & co.
LONG ISLAND AIRLINES

Boaton

year's

Trading Markets in-—

Adams & Peck

se¬

Sojnetimes a hundred or enacted q so-called Hot Cargo and
1,100 employees of Secondary Boycott Act, which out¬
the plant would collect before the lawed the sympathetic strike, the
main gate. Often stationary pick- secondary boycott and picketing

Telephone REctor 2-7340

S3 Wall

the

rections.

BROADWAY, NEW YORK 5, N. T.

Due 1991

many

peaceful.
The
dangers
in the
employees who were guilty, par¬ secondary boycott and picketing
in aid of it is that once started,
ticularly if they happen to be un¬
ion
officials with responsibility no man can say where it will end*
for the fellow-workers.
In a re¬ It becomes not merely a publiciz¬
cent strike against the Westing- ing of a grievance or a dispute,
house
Electric
at Jersey
City, but also an endless chain of dicta¬
members of the United Electrical, tions to management in other in¬
Radio and Machine Workers of cidental industries, such as sup¬
America and others formed two pliers and customers and transpor¬
solid lines in front of the plant tation companies, and oth^r em¬
,
main gates every morning.
The ployes in no wise concerned.
The State of California in 1941
two lines patrolled in opposite di¬

SEABOARD

SUTRO BROS. & CO.

BOwling Green 9-8120

The

also.

haye held that picketing a man's
home is a violation of his person¬
al and property rights. It is ille¬
gal.
An arbitrator has held that
picketing in violation of the con¬
tract merits the discharge of the

20 Broad Street

violation of the conagreement between un¬
employers has been fairly

ion and

Members New York Stock Exchange

Broadway

Pic¬

tractural

Selected Situations at all Time*

are

consider these

is granted." He pointed
the "complainant*has a

Abuses

HA 2-6622

Telephone—DIgby

who

men

ducted."
The Dorchy case has
earnings that might be never been overruled. Indeed, it
shown by virtue of maintenance has been cited with
approval in
credits would be purely illusory, two of the free
speech decisions,
merely representing a bookkeep¬ namely, in Thornhill v, Alabama
ing entry and not even improving (310 U. S. 88); and Carpenters &
the company's balance sheet posi¬ Joiners Union v.
Ritteifs Cafe
tion.: At least any earnings that
(315 U. S. 722). Over the recent
might be reported through tax years, for obvious reasons, state

NEW YORK 5

SECURITIES

rail

manner

failure

others
and

ous

have

With this outlook there

curities still unattractive even at
their current wide discounts frorii

our

and

the

Telephone

RAILROAD

increasingly dif¬

ficult to visualize any earnings at
all at least for the current year.

"illegal aims"

the Four¬

teenth Amendment. What is miss¬

ing is

picketing, obstructing of the en¬
trance gates to the struck plants,
and similar practices. * In one or
two,
pickets
have
walked
in

ita

year,

striking employees from entering.
naturally resulted. Con¬
sequently the company feeling its
rights
of
property
endangered
sought an injunction against the
union. Obviously, too, the prac¬
tice of mass picketing and inter¬
posing a wall of human bodies
menaced the public as well, for
the company could not maintain
its plant adequately and in a safe

Many of the recent big strikes

Specialists in

stocks it becomes

bureaucrats,1 prevented supervisory and

Recent Picketing

72 WALL STREET

cover

thi3

particularly as estimates' as to
possible maximum tax carrybacks
are
not very high.
As for the

(Continued from first page)
ment officials to

Any

Van Tuyl & Abbe

even

interest

Picketing Versos the Rights of
Management and the Public

for the month to $147,194
$1,329,372 reported a year
obviously no basis for
optimism.

come

earlier is

points above their ratio achieved
June 1945.

all

bond

been.

from

war

Many people have begun to have
some apprehension as to the abil¬

Nevertheless,
the decline in net operating in¬

Even before the

before the recent

cline

ity of the road

York©-

The operating perform¬

The most

junior seflwities, from
stock rigrn through to

common

many

the road's operations this year has
been the inability of the manage¬
ment to get transportation costs

4%s, 4%s,' 5s

won¬

has been that of

Paper

Railways

;

exceptionally
results reported by the road

the income bonds, were subject to
considerable
market
uneasiness

under control.

■rw.

the

der that its

however, has been outstand¬
ingly poor and at least through
was
showing no signs of
improvement.

Canadian National

earning

income

view

poor

June

1st 5s, 1965

basic

in 1946 to date there is little

ance,

Abitibi Power

road's

power.

Henry

T, Crosby is resuming the securi¬
ties business from offices at 115

the

Thursday, September 5,1946

Tel®. NY 1-1293

NEW YORK S
TELETYPE NY 1-2155

Philadelphia Telephone — Lombard 9398

Volume 164
conducted
thetic

Number 4522

aid

strike.

toed the

The

the

was

ve¬

submit¬

ted therefore under refereumdum
to the people in the

general elec¬

tion

1942

and

approved

them.
In January
1946, the Upholstery
Supply Company of Los Angeles
was approached
by two business
agents of Local 389 of the Furni¬
ture Drivers, Packers and

Helpers

Union.
pute

There

They

was

labor

dis¬

controversy at the time.

demanded

a
closed
shop
Management pointed

agreement.

out that the union did not have

majority of its. 75 employees. In
February, the agents acting for
the

local

same

made

the

same

demand, threatening to picket the
plant.

Again

Finally
threw

they

refused.

were

March

13, the unions
picket line around

mass

"Thus

sympa¬

governor

bill, and it

THE COMMERCIAL & FINANCIAL
CHRONICLE

tations

state may impose limi¬

picketing

upon

concerted

action

from

being

loaded
docks in

and

doubt,

bodily restraint but also the right
sought' is not permissible under of the individual to
contract, to
state
law
and
public
policy, engage in any of the common oc¬
though any such limitations are cupations ot life, to acquire useful
subject to review by the United knowledge, to
marry, establish a
States Supreme Court, and will be home and
bring up children, to
annulled if they unreasonably in¬
worship God according to the dic¬
terfere with labor's right to pub¬ tates of his
own
conscience, and

licize

the

pute.".

facts

labor

dis¬

The court upheld the Hot Cargo
Act and declared that picketing

incidental
unlawful

thereto

was

aid

In the deci¬
sion, the case of Senn v. Tile Layers

purposes.

Protective Union decided May

1937

by the Supreme Court, was
cited with approval. This case is
not only interesting because it as¬
sociates free speech with
picketing
but also because of the

dissenting

plant, attempting to prevent

goods

Without

'end

opinion of Justice Butler. It ap¬
pears that Senn was a self-taught
employees
from
entering
the tile layer and worked on contract
plant. There was some violence. jobs he himself secured himself.
Thereafter, without rehearsing The union wanted him to join the
all
the details,
there were at¬ union, but he refused because he
tempts to prevent the company's would be prevented from working
the

nitely stated.

denotes not merely freedom from

other

the

his

own

jobs because the union

1277

ish the right of individual
private
property;
other
dictators
like
Mussolini and Hitler abridged the

rule

right and held

Firm Attitude by State Courts

the authoritarian
view that property is bestowed
by
the state and held on its suffer¬

The state Supreme Courts
have
stated plainly that state

It is fundamental to under¬
this distinction.

ance.

stand

Thus,

with

agreement

Madison

Papers, property rights

ture—and

congress,

the

are not

than

called

generally to enjoy those privi¬
leges long recognized at common

conflict

with

the

Dealers 'human rights.'
contrary, the court made

essential

the

orderly
pursuit of happiness by free men.
Meyer v. Nebraska, (262 U. S. 390,
399).
/
..

the

right of

nature

of-each—is

the fullest

ployment
other

the

have

been
to

pears

bored

are

property.

down

become

right

struck

arbitrarily interfered with,
is

cited

money or other forms of

this

individual

here,

line

there ap¬
important

uphold

that

the

view.

Can

Finally, the courts have inti¬
mated that if the legislatures will
outlaw
illegal
picketing
and
strikes to coerce or intimidate the

state Courts have
line of defense against

tyranny? Are they our defense of
the Bill of Rights?
-<
\

there

substantial impairment of lib¬

erty in the long-established con¬
stitutional sense.
The right is as

Picketing As

Coercion

legislative branch of government,
they will support the legislatures.
So saying, they assume a new and
great importance. The fact that
so many of them stand for the in¬

Government

shipped from the
Los rules stated that only journeymen essential to the
laborer as to the
Angeles.
Other
carriers
and could lay tiles.
capitalist, to the poor as to the
transportation
companies
were
Justice Brandeis noted, "whether rich; for. the vast
majority of per¬
threatened
by the union with it was wise for the State to sons have no other honest
way to
picket lines if they shipped or
permit the unions to do so is a begin to acquire property, save by
handled any of the furniture and
question of its public policy—not working for money." Coppage v.
finished products of the Uphol¬ our
concern.
The
Fourteenth Kansas, (236 U. S. 1, 14,)
stery Supply Company, either in Amendment does not
prohibit it,"
interstate
or
intra-state
com¬
that is Senn's working with his "Human Rights Above Property
merce. Customers of the
Rights" Issue Is Excuse for
company own hands.
and
Attack on Constitution
suppliers were likewise in¬
The
dissenting
opinion
was
timidated. The company sought in¬ broader in
It is evident that here the no¬
scope.
In part, the
junctive relief under the State's
tion of "human rights being above
opinion reads:
Hot Cargo Act.
1
"Our decisions have made it property rights," the
implied doc¬
Findings of the Los Angeles Court everywhere
known
that
these trine of the New Deal labor legis¬
Judge Willis of the Superior provisions (14th Amendment) for¬ lation and the Wagner Act, is

In the view

of these courts, it
that picketing is a
right conferred under the Four¬
teenth Amendment. It is the
right
to publicize in a peaceful and or¬
derly manner a strike and its

would

appear

dependence

vital.

the

judiciary

executive

against the

tyranny is

They,

Lord

too,

Chief

causes.

Court of Los Angeles wrote a very

erudite

and

the

illuminating opinion

legality

Act

and

picketing in connection with

sec¬

ondary

the

boycotts.

Speaking

strikes and picketing, he noted:
"The sympathetic or secondary

bid state action which would take
from the individual the right to

shown to be false and indeed

in common occupations of
life, and that they assure equality
of

opportunity to all under like

circumstances.

tance

Lest

wisdom

the

impor¬
these great

declarations be forgotten

California

recurrence

allowable

activities

for labor

organizations in apply¬
ing economic pressure in legiti¬

mate labor controversies.

Supreme
held

the

from

they

Court

that

has

such

rights

common

were proper

islative

action

Justice

repeatedly
stemmed

law

and

there

should be frequent
to
decisions of this

that

court

them.

neg¬

expou(nd

and

apply

"The

term has received much
consideration and some of it in¬
cluded

things that have been defi¬

ism

strike which

and

matter.-

treated

Recently we have
by Messrs. Reuther

Madison who noted that property
was one of the
rights Americans
fought their Revolutionary War to

Such

have

liberty and

strike of 1926.
incidental

the

their other natural rights.
It is significant to realize that
dictators, Lenin and Stalin, abol¬

substitution

government,

Such

the

They stand

ers.

of the foundations

at
authoritarian

commonwealth

the

consti¬

spoken outright, de¬
claring a public policy by outlaw¬
ing both the secondary strike and
the
secondary boycott together
with their incidents.

or as a

solicitation of

offer to buy

circumstances

any

to be

construed as, an offering
of these securities for sale
of such securities. The offer is made only by the Prospectus.

Of these in¬

cidents the chief

This advertisement is not, and is under
\

is the picket

line.".

one

...

NEW ISSUE

He cited with approval the de¬
cision which Chief Justice Gib¬
p

representing the entire court,
the James
Marinship Corp. (25 Cal 2nd
721). The opinion of the learned

son,

wrote in another case,

$30,000,000

Chief

Justice

called

California

was

comprehensive and il¬
opinion covering the
subject of unions and their activ¬

Westinghouse Electric Corporation

luminating
ities

which

concurred"

the

entire

court

v
And indeed, these
just since the case may
be studied with great care. Some
of the decision may be quoted for
the light they throw on picketing.

words

"It
the

are

should

outset

that

recognized

from

•ft

•

••

•

'P~

;r/

; ■*

-1

v.-"

\'s

** V

2%% Debentures

V-J«
-

' *

>■

'»,j'

.■

-Dated September 1,1946

;'r

Due

."s

;,u '->■

* I *

•

v '

September 1, 1971

union may use
various forms of concerted action
a

such

as strike, picketing, or boy¬
cott, to enforce an objective that
is reasonably related to any legi¬
timate interest of organized labor

(citing authorities).
"It

OFFERING PRICE 100!/2% AND ACCRUED INTEREST

equally well settled that

the object of concerted labor ac¬

tivity must be proper and that it
must be

sought by lawful means,

otherwise the persons injured by
such activity may obtain damages
or

injunctive relief,

miliar cases).

Copies of the Prospectus
writers named in the

may

be obtained in

Prospectus and others

any

as may

State only from such of the several under*
lawfully offer these securities in such

State.

(Citing fa¬

...

"In two recent cases, the court

upheld the state's power to limit
peaceful picketing
both as to
place and as to economic rela¬
tionship of the industry picketed.
Allen Bradely Local No. 1111 v.
Wisconsin E. R. Board, (315 U. S.
740); and Carpenters & Joiners
Union v. Ritter's Cafe} (315 U. S.
722.)

Kuhn, Loeb & Co.
September 5,1946.

the upholders
federal

of the

against the tyr¬
anny and degradation of the indi¬
vidual man.

constitutional

tyranny for liberty,

Herein the Legis¬

has

government

government and its derived pow¬

gen¬

strikes

picketing aim

for

government

that

Rights.

the

parlous days 'of
great confusion of the great

the

emerge as defenders of the people
and
their : three-fold
frame
of

premise just

eral

enjoy

Truly,

it and strikes based

and

forms

and the Bill of

conspiracy mentioned by Mr. Tom
Clark, the state courts seem .to

establish, recognized the right of English people opposed the
are

his

picketing is something that
American must resist. They

every
must oppose
on
the same

private property to be essential if

writing

laws and

the

stitutional

tain bureaucratic agencies to act
in a manner contrary to the con¬

gressional-determination.

without

overwhelming tyranny, the state
courts stand
upholding the con¬

and Curran and others to a series
of threats designed to coerce cer¬

use

acting

executive

limitation,

reviewing the laws
legislative agency for the
executive and advising him
to
sign or not to sign. Against this

This is an important aspect of
the

bureaucrat

the
;

the

for

own

been

rights" is indeed a veiled attack
our* ' constitutional
system.

check

government, pick¬

outlawed.

men

England once decried as the "New
Despotism." This is the despot¬

itself
it at¬

subjects of leg¬

within

tutional limits.
lature

But our

lected,

coerce

incident to
aims is

eting is dangerous and should be

stitutional sense. The theory that
"human rights are above property

strike and the secondary boycott
have
long been recognized in
as

aims to

con¬

engage

abuse.

tempts to further

con¬

trary to the long-established

Picketing

strike for unlawful

unlawful and

what
Hewart
of

oppose

purposes.

sign.
The state Supreme Courts
stand firmly on the
revolutionary
doctrine of the rights of man and
against authoritarian government.

the

our

picketing for other

overseeing and ambitious men, in
these days of foreign and internal
conspiracies, this is a wholesome

decisions stemming from Senn vs.
Tile Layers.
The states have la¬

which labor and
exchanged for

and

right. While only a few outstand¬
ing state Supreme Court decisions

that of personal em¬

services

sense

towards

Legislatures should outlaw illegal
picketing and strikes.. In these
days of pressure groups led by

enjoyment of private property in

per¬

right to
make contracts for the acquisition
of property.
Chief among such
contracts

hu¬

attitude

picketing.
say the courts, must

Legislators,

rights, no enjoyment of lib¬
erty;: without the possession, and

liberty and the right of pri¬
property—partaking of the

vate

can

passive

recognize the distinction between
picketing for publicizing a cause

man

•

"Included
sonal

it clear that there

are

legisla¬
by
implication, our
too—-must adopt more

the facts of strikes and

New

law

what

by bureaucracy for rule by

law and constitution.

CHRONICLE

THE COMMERCIAL & FINANCIAL

1278

1942; furthermore, First's increase
in

book

value

disappointingly

while net operating profits,
exclusive of security profits, show
a decline.
However, on the basis
of net earnings from all source^,
low,

Bank and Insurance Stocks
E.

!By
/

Stocks^
exhibited vigorous

have

commercial "banks

City's

York

New

Bank

This Week

performance was
Manhattan
with
103,7%, appreciation;
the
lowest was New York Trust with
45.9%. /V.
* ■; -y'A ■
-: *. ■:v :r'.j

turned in by Bank of

..Total

earning.
banks,
though
.

»-

the smallest

the other hand, shows

market

Best

growth during the three and a half years since Dec. 31, ,1942.
The
average book values of 15 leading institutions had increased by 21.3%
on June 30, 1946; average expansion in loans and discounts has been
64.9% and in total earning assets 34.4%.. Using aggregate totals for
the-15 banks, instead of averages, loans and discounts increased from

$3,807,000,000 on Dec. 31, 1942 to
$6,087,000,000 -on June 30, 1946
(64.9%), while earning assets ex¬
panded from $16,902,000,000 'to
$21,762,000,000, (34.4%). Further¬
more, net operating earnings per
share "averaged 37.9% greater in
1945 than in 1942, and the; aver¬

•

of. the
approximately

assets

•

from the
earning

and is fourth
in
growth
of

of 30.8%,
bottom

with

assets

increased

j
'

""1942

Net Oper.

Loans and

Assets

York

Bank of New

62.5

•8.8

54.2:i;

2d.3

52.1

Trust—

17.3

95.3

:
&

National'-—'—

48.4

Chemical Bank & Tr—

78.9

Corn

Exchange—^-—-

Irving

National

Trust-

83.6

87.1

.City--j—

6.3

3L6

40,a

' 64.9

28.8

:2,t

•

J:; '*• ,-4 '

-v-.^

„

62.4
46.6

.57.1 ,>.p
32.0

•

•'

„

45.9

*31.0

:§47.0-

i 5753.

• -

^1.3 V"

far

expansion

December, 1944,

depressed

the

loans

regards ex¬

pansion of total earning assets,
only five banks, viz: Bank of
iManhattan, Corn, Manufacturers.
National City and Public, record

foreign government with Federal"
Banks, thus reducing the

percent

of the group as a

been reflected in the

ference has

assets,

will

balances

In order to replen¬
member banks
S. securities to the Fed¬

accordingly.
U.

sold

lower than they were on

earning

Dec. 31,

BANK

In such wise",
$3,500,000,000
proportionate re¬

NEW JERSEY

INSURANCE

SECURITIES

credit- will be
duction

Government

securities

with

member banks,

Plans for

J. S.

Rippel & Co.

120 BROADWAY, NEW YORK 5, N. Y.

Established

18 Clinton

Telephone:^BArclay 7-3500

1891

St., Newark 2, N. J.

MArket 3-3430

1-1248-49

N. Y. Phone—REctor 2-4383 '

(,L. A. Gibbs, Manager Trading Department)

WHOLESALE MARKETS IN

holdings

in¬

have decreased

in member banks.
immobilizing part of the
loans,

requirements,

businesses, as
rency-plus-deposits

of INDIA, LIMITED

INCORPORATED

3-0782

CHICAGO 4

10 Post Office Square 231 S.

Franklin 7535

BS-297

CG-105

* LA-1086

{WIRE SYSTEM CONNECTING: NEW YORK,

SAN FRANCISCO 4

Russ Building
Sutter 6567

BOSTON, CHICAGO,

PORTLAND, Enterprise 7008 !

PROVIDENCE, Enterprise 7008

Branches

26, Bishopsgate,
London, E. C.

India,

Burma,

Ceylon, Kenya

Colony and Aden and Zanzibar
. .

SF 573

CLEVELAND, PHILADELPHIA, LOS ANGELES, SAN FRANCISCO
HARTFORD, Enterprise 6011

the Government ia

Office:

Head

Michigan 2837

Kenya Colony and Uganda

NY 1-2875

La Salle Street 412 W. Sixth Street

Hubbard 0650

PRIVATE

Bankers
■

LOS ANGELES 14

10%- of

cur¬

so1 owned at
the end of 1939 and not exceeding

base to the
circulation,

find that fully $10,000,000,000

thereof

abnormal

This

dant..

and

with

tallies

redun¬

the

siim

table; which

forma

pro;

insured i cpnunercial; fbanks

ad^

•

justed to (a) and (by, then rein¬

the defense' prepara¬ forced iri vaccdrd^nce with (c)

i 1%. during'

INSURED COMMERCIAL BANKS OF U. S.

Billions

Subscribed

Paid-Up
Reserve
The

Capital
Capital

Fund

£4,000,000
£2,000,000
£2,200,000

description
banking and exchange business

Bank

conducts

Trusteeships
-

.©Jt Dollars) /

every

,v.Vt

Item
No.

■

Deo. 31/

1945'

ASSETS—'

and Executorship*

also undertaken

Reinforced

Actual

f•

Cash

Securities, t

Ui;

't'S
and .reserves

51.5.

.1.5

1.5

135.3

145.3

LIABILITIES—

partnerships ;an<l.■)'

,.'6 v Demand deposits, individuals)
corporationsr-,
deposits

-Time

-f'i»-- 72.6<
—,'29.3''

Interbank

Certified

■

5.6.

Total

5.6

13v9

I3.a

2.6

,2.6

05.5'

100.5

deposits_>w—::,1173 /
deposits-.^-j—
iJL—L <30.1/

■Total time

V '1.5

2.6

etc—

Total' demand

77.6

34.3

1.5

13.9

_1—ir-~art***

checks,

}

29.3
>

*U.- 8. Govt; depositsi/'™w//,/-_-^■■' 23.8;.
3/gtates^.-et«., •'deposits—. '5.6 •'

•

72.6

tl2.4.
; 40.6

25.8

157.6

O 2£kB"

5 /Miscellaneous ^assets

:''

"463^

66.7
•

-CLwI;!1,A'-li

.'•4- Loans- and-discounts

30.1

35.1

'135.6

.135.6

—-—-C.-.: 147.9

deposits

ll.O

1.0

8.7

157.6

.135,3

145.3

1.0

Miscellaneous. liaWlities
L

papital accounts

*60%
■

of item 6 in same column.,
^

.■
..

The

.■

5 +15% of Item 6-in same column-.
1

44.3 >

34.3

.Govt.;/.-—
■

3'^ Securities.''t

with £

Adjusted

(1938 Base)'Currency

34.3

—.

V.1; *

J ^ J' *"

.
>

....

...

:•

aHotal ^operating ih«

primary adj ustment frorti j 000, making;

column 1 to column 2 in the table

come.

is the reduction of U. S. Govern¬

pared with $2,215,000,000 iri 1944,
To state it differently, the banks

ment

deposits (item 8) to approx¬
imately 50%
above a pre-war

(1938)

The other liability
will be noted, are I left

basis.

items, as
unchanged;

but

the

resource

side,* Federal securities are t re¬
duced by a like sum to meet the
Government
withdrawals
(Item

$2,613,00.0,006

"adjusted"

an '

forced"

com¬

and "rein¬

set-up are seen

earn¬

ing roundly $400,0.00,000 more pn

$12,000,000,000 less deposits.The postulated increase of nonFederal lending is in - line with
current " tendency/ ' "Business"

,■■!//:

2).
?•< Column

of the

table

loans have shown a steady, expan¬

reflects

sion upon

the banking
system of $10,000,000,000 curren¬
cy, half that sum being deposited

the

under

absorption into

corresponding increase in
and

non-Federal

invest¬

Allocating U. S. and other

'securities

that their respective

banking balance-sheets

during the past 12'months. A gen¬
eral 20% increase in commercial,

agricultural and industrial loans
is. reflected in the condition state¬
ment

<weekly?reporting mem¬
and the $159,000,000
ended Aug. 14

ber

banks;

rise

for the week

the

evidences

movement'sim¬

petus/ .This item mow; shows 'a
twelvemonth's * increase
of ' $2,-

340,000,000
change on

the -largest
the statement

Government,

deposits

are

plusU. J5.
con¬

trastingly down $6,370,000,000 and
ther.)
a corresponding decrease
in I&rbra! securities held by the
banks.*

;;

then, that the "ad¬
justment"
and v "reinforcement"
get—by way of a remainder— contemplated in our table are al¬
loanable funds two-thirds greater ready
well advanced: : Govern¬
than the
amount
in
column
1 ment- deposits and securities . are
(item 4). Put out at a 3.44% an¬ about equally down on opposite
nual interest return,- the 1944 spe¬ sides of the ledger; individual de¬
cial
ratio,
these
funds
would mand deposits and time deposits
yield
$1,396,000,000,
while
the
>*In respect to earnings ratios,
$59,000,000,000 of securities would
bring in $879,000,000 (1944 basis)*. 1944 figures instead of those for
1945 are here used, because the
Omitting
1944's
$107,000,000
of
service" charges on deposit ac¬ earnings for the latter year have
counts, we find that other opera¬ not been fully integrated in offi¬
ting earnings add up to $358,000,- cial reports at this writing.
ratios will be at 60%

and 16% to

•

individual deposits as in 1938 we

«f

> ?

'<71

loans

SEVER' k CO.
WHITEHALL

this

money

shows combined statements of all

least

NATIONAL BANE

Wall Street

Applying

non-bank

lowing

outside of banks and
owned by individuals

and

ments.

mal/

Treasury,

BANK and INSURANCE STOCKS

NEW YORK 5:

period before Pearl Harbor.
10% ratio may therefore be
as 'conservative, y mor-

The

regarded

raising
making
mandatory a certain percentage of, subject check (item 6) and half as
Treasury obligations as. secoridary. time-deposits'or savings (item 7j>
reserves against demand
deposits thus swelling these items by $5,—are high in the Board's perma¬
000,000,000 apiece. This currency
nent "agenda.
Likelihood that a would not be loaned or otherwise
portion of member banks' present paid out as such. It would be withk
deposits will be frozen, so far as drawn from circulation and go to
lendability [is concerned, under¬ swell the member banks' reserves
with the Federal Reserve Banks
scores the need for tapping addi(item 1), thus making possible ajt
tional'deposit sources.
reserve

tion

the currency

deposits

Banks—an

Reserve

Federal

other—restricting

BOSTON 9

These
factors
of /change—(a)
by -check.- /Ah official
Government
bal¬
for proper -currency- reduction /of
deposit ratios is deducible from ances, (b) reduction of U. S. obli¬
Federal "Deposit Insurance Cor¬ gations carried in the banks, (c)
poration's analyses -for, the year possible "corralling of loose cur¬
ended'Dec;-31,-1944. Thesev show rency—are reflected in the fol¬

•

cessive deposits

Laird, Bissell & Meeds

Teletype—NY

yardstick

banks' assets by one means or an¬

Bell

.'Vv

:■

be--closed

from $7,000,000,000 to
around $800,000,000, nearly a 90%
shrinkage.
Meanwhile
Federal
Reserve
Board
talent
is
being
concentrated on the..alleged ex¬

and

Exchange

;

1946.

mainder;ijq''pocketbooks; and recently mentioned by Elliott V.
hideaways, ■ or," financing
black Bell, New York State Superin¬
markets
and
clearing
various tendent of Banks, forC suggested
transactions that would ordinarily round-up by commercial banking.

in six years

;

outside-of-banks,
amounting ' to
more than $26,000,000,000.
Of this
sum, not exceeding $6,000,000,000
(pre-war basis) is needed for dayto-day trade and service. The re¬

the net result of the

Excess reserves

Members New York Stock

Most obvious reservoir of fresh
funds 'A l?'< money-ih-circulation-

eral Reserve system;

correspond¬
observed, are ing increase of such holdings by
total

National's

reserve

ish their reserves,

and

market action of their shares.

First

banks'

member

crease;
let
us
hope, liberally
shared-in by private investors.

STOCKS

Aug.E 28, against $2,901,000,000 on
July 3 and $2,830,000,000 on Jan.

$90,000,000. The

balances

Reserve

February, 1945.

and discounts is concerned, Bank

half of the list; but as

of Federal Reserve

reserves

member banks by

its

gain better than that
whole. It is in¬
of Manhattan, Central Hanover, teresting to note that the growth
Chemical, Corn- Exchange,- First registered by National City has
National, Manufacturers, National been substantially greater than
Cty and Public are in. the upper that of Chase, and that this dif¬
So

loan

drew $300,000,000 from
with member banks
and this sum was credited to the

stock dividend oi November, 1945.

SAdjusted for 10% stock dividend of
■

the

excess

""59.8 "

Among the lat¬

ter, British loan' operations•*are
currently active irr cutting down
excess reserves.
The first install¬

!<■ ment

Excessive Money in Circulation

puibhc debt, reductiojn

and other causes.'

68.4

j
.84.9 ". ;
;'.61.0
!
:

reason

Treasury

tAdjusted for 20% stock dividend of

District, there has de¬
tendency on the part
long

—-r-

^Adjusted for 25%

veloped

of the banks to increase their

•

—

New York

*..

noteworthy is the heavy

withdrawal of. Government- de¬
Appreciation posits. From an all-time; top of
Asked Price
i- " $29,441,000,000 at the beginning of
*(
<103.7
i
the
year,*, these
have
declined
York City
t53.6
j- roughly 50%, (New
banks'"deposit loss was .$2,400}I. ,..49.8 1 j
<-'48.3
'( "* 000,000) and are likely to undergo
*•/: $55.3
ia '' further
drastic1 shrinkage
by
'61.7! '

*30.3

•A!:--;
519.8 vi

34:4

59.9

15——

4-17.1

■

/
'

Totals

were

Most
•% -f'-i.

—78

;

22.6

128.0

142.4

64.5

38.5
:•

22.7 V"

45.Z '

Treasury Certificates and

ample,
Notes

rowing relative to' ■ Government compared with $9,325,000,000 on
borrowing, v Furthermore," accord^ July 3, 1946. Meanwhile, commer¬
ing to the latest report of the Fed¬ cial and agricultural loans reached
eralReserve
Member
Banks, a new/peak" of $3,223,000,000 on

30^ *

42.9

■

40.1

National——

Average

Trust—

••

12.4

25.9

63.1

New York Trust——I

Public

i /10.6*

18.9

31.7 ^

Trust———-I

"Manufacturers

•

♦

52.6

727.1 V N '■vS; $43.3

—1Q.8

3(1.8

'—

Trust

Guaranty

120.1

& 26.0

13.7

60.9

*18,5

60.8

'62.7

National—

First

72.4

t26s0

:19.8 i

■

26.7"

20.8

79.6

Chase

.27.5

301.1

HanoverJ——

Central

Aug. 28,'46

•

Book Value

%-'%

Bankers

Profit

Earning

Discounts

Manhattan-

■

% Increase
.

Inerease-f-

-period

might do well to summarize what
the. hanks face pr. may. expect, j'

Dec. 31, '42 to

1945 over

Dec.31, '42 to June 30, '46

reconversion

of ,; another

banks:

respectively." Guaranty Trust, on

plateau of potential earning capa¬
city/ Significant, in this connec¬
tion, are the changes that are tak¬
ing place in the make-up of their

maturing

Banks at New Threshold

18.9% ^increase.

Public's book value, penalized by

(Continued from page 1263) Vcapitalization, increased
got problems that are now aggra¬
21.3% average;)," vated
age market appreciation of the'15
by deposit'shrinkages arid
but its net operating prpofits per
stocks, from Dec. 31, .1942 to Aug<
the fear of possible Federal Re¬
share
increased 47.0%
and the
serve
28, 1946, was 59.8%; ■
"freezing" — problems
of
■'
While each bank in the group market price of its stock appre¬ financial structure, lending power
achieved a substantial increase in ciated 75.0%.-By way of compari¬ and
public relations.
; :
each of the five categories consid¬ son, Guaranty's book value per
How; can the banks re-assume
ered (with few exceptions), in¬ share, with no handicap of in¬
their traditionalf but: partly ab¬
creased capital shares, gained.only
cluding the - market price of its
dicated position?; Salmon P. Chase
shares, comparative gains were 12.4%; net operating profits in¬ when
Secretary of the Treasury
creased 17.1% and market value
by. no means uniform. ^ For Ex¬
wrote to Horace Greeley /follow¬
ample, Public National tops the appreciated 46.6 %.
The
accompanying. tabulation ing the Civil War: "The way to
list in loans and- discounts' and
resume specie payment—is to re¬
also in earning assets,' with in¬ gives the comparative percent in¬
sume." We-who are in the midst
crease achieved by each of the 15
creases
of
142.4% " and
126.0%,

Bank

such huge volume that they place
the banks, on an historically high

Governments

term

short terms have been eliminated
from
their
portfolios.
For ex¬

expansion in loans and discounts

19.0% (below the

ir:

10.0% lower than their.peak reg¬
on
Dec. 31, 1945, are in

istered

respectively ;$2,55.1,0C0,O00 and $1,412,000,000 gn Aug.
First's
1945 /, figure, was
28, r 1946,/ against
$2,972,000,000
$122.92
and $1,460,000,000 on July 3, 1946.
compared
with $97.94 in 1942,
which amount includes security earning assets, viz:, the growing On the other hand, U. S., Bonds
loses of $8.76 in that year.r' i
importance of commercial bor¬ were $9,474,000,000 on*.Aug. 28,

[VAN DEUSEN

Thursday, September 5, 1946

appears,

THE COMMERCIAL 8C FINANCIAL CHRONICLE
have risen

respectively $2 billion

viand

$1 billion
permitting the
above

crease

erick

large P?rt of

into

currency

would Seem to*

thip^avoaniv

the

b?' ^ order.

withdrawal
had

account 33 years ago and

Inflation
'

ef,

fects .of

inflation, at Profit to
themselves and the\ communvy,
by making their demand and time
'deposit services truly attractive,
financially and otherwise, the
imon using the fresh funds so
quired to (a) speed
and services

of bank

•use

creased

production,

capital" loans.

The

thus

will

banks

their rightful status as
of
liquid
and

er^

r®ga^n

chief lend¬
semi-liquid

due

several

causes,

which the two most important are

dependence upon Treasui y P
and the perennial threat of Go»
crnment
competition.
Fed<sra
agencies continue to encroach on
banking territory.
The

finance corporation u

Reserve auspices f

■

making of long terl]l
Secretary of the Treasnffy

Jl!

loans.

other,

question

the

whole

one

service

charge theory, insofar as it seeks
recover specific
costs, item for
Certainly no other business
seriously attempts to allocate its
to

overhead

parcels
ihat

the

./customer

makes

ac¬

recent

into

which

our

best

half-month

with

sales

since

running

its

guest

Efforts

toward

such

cuat

lt-

during

first

Total

year.

be improved, to
an
approaching half a billion
dollars. This figure does not take
into account any
recapture of in¬
come
from
domestic
exchange,

January,
35%

quarter, of

which many

banks seem anxious
relinquish and to have others
relinquish.
,•
to

Outlets

vious quarter and

public

example

was

know the answer, He. cites

trasting instances banks A ancl B,

often

has

pay

payjng .about the
salaries,
900,000
Yet
an

with
and

as con¬

at the low¬

since mid-1941. Time de¬

scale

same

respecitively

risen

moment:

with

10.20 at

balance may be - far mpre than Bank A. and 5.70 at-Bank B„ while
enough tp cover it) ,• or he |s Sub^ at' both hanks
"deposit tickets

;

'ampfe creditgfacilities"

two /times

checks,'-;

costing..exactly;

much

wartime'

as.

on*us

distinction

"being

Which -segregate
funds

oftime

money-changers'

example of the
savings bank
deposits has

Maine

$3,000,000

of-its 3,500-population town, a tract em¬
bracing some 150 acres, on'which
it will

develop a modern village.
40 houses is sold,
the bank will retain the
mortgage,
As each of the

thus selectively
building up its
portfolios and its tributary com¬
munity at the same time. In other

words, without waiting for
ulators

as to control it
against undue
competition. At least one more
country bank in the same State

ner

planning

]

similar project, i

the

portals

before

W'ti'fifberally

..n...,

matter what path is

their

will

de-

firm

prove

*Ray
E.
Bauder^ President.
Baker-Bau4er,< Inc., -addressing
Sixtieth: Annual

circulating ffioney,
banks will ' necessarily broaden
their solicitation bascandsol.d.fy
their. good-Will-

jn so domig,.»

gated,

Association,

June

Bankers

26, 1946.

: ?

long

friend,

^ n

and

..L--.

■* r. •••.

.4-

;

Vy '■

+.' j.*'■* \f

'V.'

" V- >'V"

K'F

' V

•

Sorrowers and

admittedly

identification
to

good

Price 100% and accrued interest

•

practice

introduction and

$1,242,300 Twenty Year 5V2% Cumulative

fully

investigate business ac¬
counts that might ask for credit.

intricate and restric
tanglement

■

Permitting

not to open
checking accounts for
total
strangers p without
proper

misnomer

deposito^

are

„

^ls end.are

Eve

Needed

Hew" Accounts •1

their own
Devices for achieving
:fotf«ed as "Seryice Charges,

^?hpv

Ease
'"

checkholders to the

$7,2S0,0()0 Collateral TrustPifteen Year
Sipterriter J,i96i V

the 'official

Income Debentures due/Januaryl, 1964
■,:"y <>■'■> j v w -■; }A:$lyy .'■'}'-0&'
iM': 4' ^

But in the laudable effort to cur¬
tail operations of,crooked checks
sters
—
which
are
relatively

against which both banks and depositors are struggling.,

■.■■

Prfie 100% and accrued interest'

negligible in volume — the banks
are
seemingly, making it difficult
embarrassing for many hon¬
this1- is
misleading. - Most est, currency-toting individuals to
become depositors. Bankers might
schedules charge a ''maintenance
do
well
to
re-examine
their
methods
of
opening individual

^Aetivity

-Charges"4 has been
suggested as a substitute term yet

and

Silmi

checking accounts, with a view to
bettering public relations as well
as
increasing
deposits :and
broadening the contacts of their

■E»%iSS saarss
Sds of

them perish,

wiped out.as a

■penalty for having continued to

^Fvervbody

the

South

hes

iheardofthe banking experiments
Nperoes some years

ago,

Su^afwhieh a duaky
•^as

in the

depo, cu

unwise as to leave: a tairiy
decent
balance." untcucboa
for
so

respective

Copies of the Prospectus
,

•

variant
of the introduction
card system
already
used
by
some
banks
through employers and present
depositors might prove a helpful
expedient..

;
in

•

These observations
a

are

offered

spirit the reversp of critical.

Because

American

banking's

ac¬

may be obtained from the
undersigned
only in St&tes in which tfie undersigned fa qualified to^
;ir\\aot as dealer in securities and in which such
■

institutions. A

September 4, 1946.

•'

•"

fa nq^ pndis under no circumstances to be
$ons(ryed as, an offering pf
solicitation of an offer to fruy such
securities*} "
T}rte pffsring. is 'm&dh only hy tho
Prospectus?
^

the

tending,money to ;the hank.

they

Shoulders of

upon prin¬
independently

more as if the applicant
trying to borrow money
bank than, in. effect,

were

from

compelled tp revise a poi_
have developed during
5hV cast 10 or 15 years—that of
•shifting the expense burdens from

lev

chosen, noqe

upward faring

tested. Gfoiqf of these is that the
depositor is the banker's besfc,

Convention

Michigan

ciples

■

fsion of excess

the

unless it be founded
f

these securities for sale or
a$ a

^fgihevSe

will be

which

country now stand
may;b£~new in time, but the
ground beyond js very old. No

lay-&way^ ^y

banks of this

announcepie n f

;

Regardless of specific diligence,

77jis

spec¬

mortgage salesmen to
bring the business in, this bank
is inviting it—and in such man¬

inflation

some

the " form

the

bought, in the outskirts

$1,-.

analysis showed, the "cost"

indicated

boxes,

above

level. To cite

product;'/stdmfrdng / partly - from
deposits. 'the custom ot:large; corporations

$1,400,000

I'km-us" check to be

were

people put money in savings ac¬
counts for physical convenience?
just as they hoard currency in

Deposits

is expected to exercise that tradi¬
tional ingenuity, without which
his calling
would
never
have

posits ;iriL;weekly reporting mem?
ber banks, the middle of last year,
were
$1,700,000,000 higher than in
mid-1944; but this twelve-month
tbey rose pn|y $t,5QO>000,000 re¬
flecting a taper-off of savings in

relations.

two will suffice. The bank

est rate

Increased

time deposits
upon which interest
is paid? Here is where the banker

foi

the period was only one-third oi
the amount saved during the pre¬

eovery result in paradoxes and
anomalies
that
do
not
improve

for

How can profitable outlets be
found for the fresh funds thus
acquired by banks, -particularly
r

this

$2,900,000,000

material

and

extent

and
unincorporated
having declined sharply

the

our

nonetneless

individuals
business

help in
maintaining
de¬
posits, in fact, it appears tnat the
aggregate banking income may

redemptions dropped to the low¬
est figure for 12 months. Yet sav¬
ings in general are not faring lo
well, the rate of accumulation by

lengthily

building

ahead of 1945. Meanwhile E^bona

course

table

some

deposit accounts — except, per¬
haps in relatively few cases of
gross disproportion — if such a

the

de¬

establishment .rendered
bill:

and

half

once

tabie and deductions therefrom, we
that the banks can well afr
ford to forego service charges on

find

"Harper's" Magazine
hundred years ago. This

scribed

after

—

savings

••

repatriate currency
channeled. Savings bond sales are
increasing. July has furnished the

microscopic

of the restaurant

manner

nearly

such

need
sees

to penalize every move

origin,
being set up to penalize the flight
from
checking fees. No matter
how justifiable legally and ethi¬
cally, savings charges do erect a
barrier- against the very type of
deposit which ; banks will most

-the

item.

poses.

Referring
Savings

(sometimes grudgingly and doubts
don't know of any
ingly bestowed), or the bank ac¬
4c not
being met. He still sees cepts it "for collection
only," in
within j which case tljo depositor is cdrnthe existing framework of.. pn- pelled
tp
Wait ■ an unspecified
-vitclv owned bunking.
?
number of days. Further obstacles,
SWM
likewise unlisted by FDIC, are
may be to operate .UbercW even frequently
encountered
by
the
?^ss. | average person in
the extent of
.opening
a
absorption
checking account, particularly in
^
iipdsred about by & rnuitituua
large cities. A formal application
Testrictions, supervispry, Phd -otftr must he filled out, with personal
character and business references;
<eyw.i§e>
previous banking connections -if
?
Effect pf Service Charges
any, and other information — all
To expand deposits for inclu- of which is
checked and investi¬

the

well

very

charges
are

posits for taxation and other pur¬

jected tp long delays while trying
to J get
an
offiper'S
initialing

Snyder, however, is frosty to the
bill and is quoted as saying.
,1

Jitter

may

Service
counts

service

hand and his

one

Accounts

any

controversial

from
three -to ten cents for the priv¬
ilege of cashing; in .person, .his
own cliecfe against
his .own solvent
balance at his" own. hank.
the
check |s drawn on another bank,
he either is unable tp cash it . at
his own bank (though his solvent

g"»ra"^„ate BPanking

-the

the

cost factors

own

advise

so-called

positor

Committee, in anticipation of the
next
Congressional
brushed the dust from the Mead
bill which aims to set up a smaii
der Federal

Service Charges

may

charge^ regimes, the individual de¬

•ctruction Finance Corporation
pursuing its
patioji plan. The Senate Banking

business

permissible

i
naired

upon

single and multi¬

•

presuming

banker

between

charges,
let us say, a $1.00 "monthly main¬
tenance" or "ready to serve" fee
to John Brown, the same as that
paid by the store or factory
wherein he works; although the banks. The higher income yielc
equipment ^and i laborisetrup" re? gf TJ. S, - Savings bonds as com¬
conditions
the movement of quired to handle the business ao pared with time deposits in com¬
count may be manifold5
greafeiv mercial banks must be the attrac¬
population and difficulties in esBrown suffers similar inequity as tion, now that wartime patriotism
tablishirig bank accounts
Il¬
to charges for
handling deposits. A is no longer/a motive. This tend?
legal transactions such as, 'black
Chicago
bank
analyst* ; v of * 40 to show that interest rate is a
market' sales." (italics are ours.)
The FDIC might have, added that years-?experience with 4,000 primary magnet in attracting savbanks when appealed to by a $2,- lings
deposits.- -Mutual -«savings
many i cKeck'-cashihg ^inconven¬
have
000,000 bank in a farmingj-indus- banks
always
advertised
iences
are
of the banks' own
trjal town for; "help" respecting their dividend rates as strong in¬
making without reference .to war
better
resuIts
from -service ducements; so have building and
or peacetime conditions; To
star|
charges, replied that- he did not loan associations. The notion that
with,
under
prevailing
service

financing

out

resultant

all

made

ple-item deposits."

be
deemed factual hindrances, With¬

and individual cash balances

ness

in^change of
through ireer

with

added

held in the form of currency" is
quite properly attributed by the
Federal Deposit Insurance Cor^
poration (Annual Report': dated
Aqg. 21, 1,945 X "to various factors,
including
the relatively
large income rises of wage earn¬
ers, many of whom have not' been
accustomed to maintain ^checking*
accounts;
the inconvenience
of
cashing checks
under * wartime

checks,

reconversion

what

itemising bows
from
the
head waiter,
use
of
accruals of interest for a third of
crystal goblet, enjoyment of so
a century, so that the sum had
much daylight, etc., to a total of
more than .doubled.
$12.63, winding up with one
A
Increased proportion of "busi¬
for a glass;of water.
faithfully

How Banks Can Counteract

Soods

$100 in a special
had for¬
gotten about it; but the bank had

war¬

the

continuance.

deposited

eyes

soundness

an Atlanta bank
(name on
application)
a
courteous
letter
stating that his inactive balance
of $247.61 was at his disposal, for

•

counteract

be'given', in effect, by

the most respectable white bank¬
ers to dilatory depositors in all

from

rant.'

can

their

charges

prised the other day at receiving

is way back to the issuing agency
in such sums and on such occasion

banking functions

shut

ply would

By 'way. of refreshing contrast,
writer was pleasantly surr

practically recalled, is
through the medium of the bank¬
ing system. Having been depos¬
ited in banks such currency finds

Banks

complishment?., are ^.unmatched,
believers iji its continued in¬
dependence and growth cannot

true

subject

the

proper

parts of the country. '

redun^

:
Little did the wise neighbors
Who laughed at these'colored peo¬
ple realize that soon the same re¬

The only way by which
dant currency—l. e-, the amou
in excess of legitimate nee s
can

When

ayear. ^

length he

his

hand, excess
ing, as we have noted, and money
in circulation is nearly $860,000,
000 higher than twelve months
ago.
The next objective,' namely,

•Juring

than

figures*,

demanded the sum of
deposit, he was blandly told:
noted. On the other 1
"Mistah Jones,-the in-trust has
]
reserves are shrink¬ dbnc .et yut money up!'- '
■
in round

Prpspectp§

poay

legaffy be distributed,

THE COMMERCIAL & FINANCIAL CHRONICLE

1280

traction

The Thinness of the Market
raised to 45%, and on
Jan. 24, .1936 to" 55%. On Nov. 1,
1937 it was restored to 40%, which

remained until Feb. 5,
it was

1945 when

Raised to 50%, followed by

further raise to 75%

July 5,

1945 and to 100% on Jan. 21, 1946,
thus

abolishing margin trading.
(The Exchange itself on March 5,
1945 prohibited" margin accounts
for stocks selling at or under 10,
and required $10 margin on stocks
selling between 10 and 20).
An analysis of 40 Well-known
Stocks including the 30 compris¬
ing
the
Dow-Jones
Industrial
Average and 10 other most ac¬
tively traded issues shows that
the spread between the bid and
asked prices on the whole varied
little following the several raises
in margins, and also that the vol¬
ume of trading is not appreciably
smaller today with margin 100%
than when it
But

while

was

individual

spreads are

stock

much

smaller. When low margins were

active stock would
be traded in 500- and 1,000-share
lets at a variation of Va
or
%
in

effect,

point. Nowadays anything above
i
500-share order in an active

stock, and less in an inactive one,
can result in a price change of 1,
2, 3 or more points.

has

factor

Another

the

been

of the capital gains tax,
provision for a maximum tax
of 25% on securities held for six
months or longer tending to defer
selling at times when it would
be desirable both in the holder's
interest and as a stabilizing in¬
fluence on the market. In fact, in
effect
the

of profits

postponing the taking

helped

for six months the tax has

lever, ac¬

celerating the price by discourag¬

ing sales, and decreasing supply
without decreasing demand.
Another factor tending to re¬
duce

RAILROAD

the extent of
purchases
and

liquidity

restrictions

directors in

officers and

sales of

the stocks of their

own

corpora¬

tions.

Being obliged to wait six
before taking profits, on
pain of being deprived thereof
if they act earlier, these "insiders"
are discouraged from such activ¬
ity, and hence the stability of the

STOCK

activities

Socialized Credit Via Free Govt.

trading for their own account
constantly on the floor of the Ex¬
change. Frequently a floor trader
would buy and sell several hun¬

Capital and Tax Exemption

dred

thousand shares of

(Continued from

sin¬

paratively

small

long

aged cooperative associations
which

short

position. Today he is on the same
100% margin basis as the public
and is required to be able to fi¬
nance each trade separately, and,

2. Has

months

market in such stocks suffers.

for

ent

one

of the par¬

governmental

agencies
of privately managed cooperative credit

and to two groups
.

associations

lowing day before he can take it.
On Aug. 10 floor trading was only

above and
of

—

the

500

been

dwindling in the operations of
specialists. The specialist's main

federal

accounts.

sub¬

system
of their capital
federal reserve
—

member

banks
include
part, but not all, of the FDIC in¬
sured banks.)
"Free"

Capital and Tax Exemp¬

tion Subsidies in Agricultural

Credit Field
In

the

reserve

i.7%

(The

system,

additional group

credit field—but not
similar

the

approximately 1,700.

recipients of the subsidy
of Federal tax exemption in the

The Specialist

same year, the income
paid by member banks of

taxes

noted

Also

year's volume.

1265)

page

(2) for the

amounted to

extended the subsidy of
income tax exemp-

tion to all but

'•

2.42% of the total, less than half

has

outlets

Federal

during the day, if he has a
profit he must wait until the fol¬

There

serve

governmental credit.

last

than 500 privately man¬

gle stock during one market ses¬
sion, ending the day with a com¬

while he may take a loss at once

Period

Holding

6 Months'

The

to act as an inflationary

40%.

narrow

quoted, the size of the market

still

the

floor traders, who formerly helped
to
maintain
close
markets ' by

(Continued from page. 1264)1
ment was

also

Thursday, September 5, 1946

one

credit field

tural credit

has

ment

—

agricul¬

the federal govern¬
established a complete
—

system of government credit fa¬

cilities for individual farmers and
sidy of government-provided cap¬
their cooperative business
organ¬
ital—are the group of privately
izations.
financed
and
managed
mutual
All told, these agencies in the
savings banks, savings and loan
agricultural credit field extended
and building and
loan associa¬
loans during the last fiscal
year
tions, cooperative banks and cred¬
it unions, with an estimated annual totaling $2,800,000,000 and had an
gross earnings volume of more outstanding loan volume at the
end of the year of
than 1 billion dollars, that have
$3,155,000,000.
I Numerous branches of this
won such exemption on the theory
sys¬
of their being non-profit in char¬ tem are in direct competition with
„

■

function

broker is to execute

for other brokers limit orders, al¬

though

called

is; sometimes

to execute market orders. As

upon

dealer he

buys and sells for his
highest
represented
by orders he is holding for execu¬
tion for others, thereby creating
and maintaining a closer market
than would otherwise be possible

account between the

own

bid

lowest offer

and

acter,

The

subsidy * of
provided
capital

governmentmeans

added

some

and

Federal budget costs borne by the

mortgage

and demand.

taxpaying public and a substan¬
tial
competitive
advantage
for
those branches of socialized credit

have

minimizing the effects of tem¬
porary disparity between supply
Today the specialist is allowed

that

to operate on a

areas

threaten the

existence of the privately
financed country bank system.
very

the field of long-term

indebtedness,

governmental

farm

federal
agencies

credit

advanced to the position of

in competition with com¬

are

holding approximately one-third
50% margin, but
mercial banking and credit in¬ of all the
hedged in by restrictions on
outstanding farm mort¬
stitutions.
his own trading. He must be able
gage loans in the country, with
The subsidy of tax exemption the
other
two-thirds
divided
financially to buy or sell for his
means lost revenues for the Fed¬
own account. He cannot buy or
among life insurance companies,
sell for himself as long as he has eral Government and further sub¬ commercial banks, private lenders
competitive
advantages and
unexecuted orders from customers stantial
miscellaneous
other
credit
governmental sources.
at the same price. If he accepts a for the exempted
market order he cannot act for credit agencies and private lend¬
In the field of shorter term nonhimself until the market order is ing institutions.
real estate agricultural loans, gov¬
executed. He can buy or sell to
The cost to the taxpaying public ernmental
agencies
again hold
himself on orders entrusted to him of the providing of public funds one-third of the total commercial
only if the floor member of the without charge to credit agencies business and commercial ( banks
firm giving him the order accepts treated in this study, computed hold the other two-thirds
al¬
the transaction. He is not per¬ on the basis of the going cost to
though these data do not cover
mitted to buy or sell for his own the Treasury of borrowed money, short-term loans extended
by pri¬
account at a
price which will is shown to be some $126,500,000 vate lenders such as dealers, fi¬
"elect" (i.e. make a market order) per year. To this must be added nance
companies and individuals:
stop orders on his book. He is losses sustained through the de¬
The only exception to the rule
also prohibited from "stopping" pletion of principal amounts of
of federal income tax exemption
stock on his book or on the book government investments in part
is provided by the intermediate
of another broker, for his own of the agencies.
credit bank system in the Farm
account.
'
The loss in potential tax rev¬ Credit
Administration.
These
is

Technical Factors

...

Contributing factors to the free
market were the volume of short

selling,
the
traders, and
specialists, all
keep spreads

activity
of
floor
the operations of
of which helped to
to a minimum and
market, especially

to stabilize the
in

periods of stress

either side.

A PROSPECTUS ON REQUEST FROM

Short Selling

YOUR INVESTMENT DEALER OR

When the market

Distributors Group, Incorporated
63 Wall Street

New York 5,

N. Y.

was

—

entirely

free, short selling contributed a
stabilizing influence, for it helped
advances when
stocks were bid up beyond their
to check runaway

One

real values and

of the

sellers
acted

Securities Series

spur

since all short

potential

are

buyers

cushion and hence

as a

protection in

NATIONAL

—

declines and

severe

to rallies.

Today
made at

the last sale and less than % above

likely that more satisfac¬

tory markets would be seen as a
result of larger

volume that could
anticipated if corporations be¬

the last different sale price, which
that the last sale price

Priced at Market

Prospectus upon request from
your investment dealer or

<
.

NATIONAL SECURITIES &
RESEARCH CORPORATION

While it has been pro¬
posed that memberships be incor¬
porated and that outside corpora¬
tions be allowed to purchase seats,

ican

STOCK Shares

came

(even if duplicated several times)
must itself be higher than the
previous price.
On last weeks break in Amer¬

PREFERRED

means

Telephone it

to make

was not

short sale

been at
not

lower

price, and it was
dropped
15 points that there was a
a

until the

close to

stock had

price at which

short sale could
t

short interest reported by
Stock Exchange on Jan. 15,

The

Now York 5, N. Y.*

the

1946
was
1,270,098 shares.
By
Aug. 15 it had declined to 732,649 shares, partly due to the 100%
margin requirement which has

curtailed the

held

amount of margin-

stock available for borrow¬

exemption of both govern¬
mental and private credit agen¬
cies and institutions is responsible,
estimated

paid by commercial
banks, is shown to be some 130
to 150 million dollars per year.

Implications

Exchange itself, have had
the effect of
turning a free and
Stock

market, capable of absorb¬

ing a large volume of transactions
on both sides, into a narrow and
vulnerable market much less sat¬

isfactory

and
We

beneficial

the

effects

the

believe that beforei

these undesirable by-prod¬
reform are likely to be
eliminated or at least modified, to
the

loans

;

There

the socialized credit trend on the

been

sharp

reservoir

agricultural

public's advantage. From Aug.

25%
and

of net income
reserves.

and federal tax exemption in their

Two

Corporation,
paid in 1944

ministration

tax

the
ex¬

emption to tax exempt credit
agencies are: (1) among commer¬
cial banks insured by the Federal

Insurance

Deposit

The

federal income taxes

amounted to 8.45% of gross earn¬

ings and 19.6% of net profits, and
■l-» »

over

their

fAdvantage

interest

"Free"

INVESTMENT

be obtained

COMPANY

Diversified Investment Fund
with Redeemable Shares

Prospectus

Request

★
GENERAL DISTRIBUTORS

R. BULL MAMAGEMENT CO., INC.
IB William St., New York 5

Total
of Both.

Exemption

1.1%

Production, credit
Land

Federal

Bank

Banks

for

2.1%

1-T

2.4

Cooperatives————s.—.----——

1.0

:——_——

Commissioner——

Bank

1.0%

3.3

2.6
.3

3.5
.8 v'/

.6%

The

of Intermediate

Credit Banks

"free"

capital subsidy is

reflected

in tho

but for technical reasons are not shown separately.

Farm

Credit

Administra¬

agencies, in other words, haye
on the average a competitive ad¬
vantage in terms of annual inter¬
est charges of 1.4% from their
"free" capital and tax exemption
tion

The

national

network

gov¬

ernmental farm credit businesses,

with their cooperative outlets, in¬
clude not only the parent agen¬

cies, but also

some

514 produc¬

tion credit associations maintain¬

This 1.4 %. is available ing 1,460 full and part-time offi¬
margin for interest rate re¬ ces; approximately 1,736 national
duction, accumulation of capital, farm loan associations, making
refund to borrowers or expendi¬ land bank loans; 12 land hanks;
making their own and land bank
ture on administration.
The dollar value of the two commissioner ; loans; .12
district
subsidies.

★
.

Distributors

Rate Terms From.

Tax

Capital

COMMONWEALTH

Con$rest Street, Boston 9, Mass.

commer¬

cial competitors by reason of these
subsidies: :■
v:-;.

Types of Loans-

♦Effects

INVESTORS

Keystone Company
of Boston

capital

competitive efforts to absorb the
agricultural loan business is
vividly illustrated by the follow¬
ing estimates of the annual in¬
terest rate advantages held by
agencies of the Farm Credit Ad¬

indicating

yardsticks

of federal income

value

government-provided

Regional Agricultural Credit Corporation---Emergency Crop and Feed----——

Founded 1932
map

local investment dealer

losses

average,

FUND Inc.

your

certain

con-

REPUBLIC

Prospectus

after

expenses,

The value to the governmental
credit agencies of the subsidies

Land

Custodian

from

borrowers.

Congress has
seen fit to recognize tax liability
and to impose a franchise tax of

♦Average

unds

In this instance the

published by the National Securi¬
ties & Research Corporation,

Floor Trading
has

other agencies making

deductions from

long
ucts

serve

credit for

cannot be measured.

Governmental authorities and the

investor.

the basis of federal

income taxes

Various restrictions, applied by

broad

banks

country's political, social and eco¬
nomic future are intangibles that

Conclusion

income

tax

29th issue of "Investment Timing"

ing.

eystone

of the Stock Ex¬

action has been taken.

the way

down from the.high of 197% until
around 183, because each sale had

be made.
120 BROADWAY

possible

members

change.

federal

which

for

enues

Corporate Memberships

short sale may be
price below the price of

NORTH AMERICAN SECURITIES CO.
2500 Run Building

Son Francisco 4, California

subsidies
above
tnnfplv

the

shown

agencies listed
to

$28 5ft0.flflft

approxi-

anmiallv.

offices and their branches of the
Farm Credit

ing

Administration, mak¬
crop
and feed

emergency

Volume 164

Number 4522

THE COMMERCIAL & FINANCIAL CHRONICLE

loans;
12
regional
and ,1,952
county offices of the Farm Secur¬
ity Administration, and numerous
branches of other agencies.
.

Thoroughness

C
of

the

coverage

the

agricultural; credit system
established by the federal govern¬
ment

raises

logical question of

whether it represents
tern

for

the

use

trial pat¬

government-

provided capital and tax
exemp¬
tion

weapons to promote wide¬

spread

extension
of' socialized
credit to other fields now served

;$ifl by

>T'

Ilidden Public
Financing of
Corporate Lending Operations

v.Va

use of public funds
during public ownership — but is
keeping for itself the "poor risk"
businesses./
; .;/■ ;v';
This pattern is particularly ap¬
parent in the production credit,
.

federal

The federal government's credit

system is replete with evidence of
of
the
financing
device
through which much of the oper¬
ating expenses of the govern¬
uses

mental

corporations and agencies
paid from the Treasury by

are

means of advancement of
capital
funds without charge and the re-

loaning
such

the

funds

corporations

the

Treasury
through purchase of interest bear¬
ing. governmental securities.
Through
this operation,
the
governmental agencies engaged in

lending businesses, which
ally hold themselves out

self-supporting,
substantial

gener¬
to

able to realize

are

amounts

operating
Income from the public
Treasury
without having to call on the Con¬
gress; for appropriations.
/ To describe the practice in sim¬
ple terms — it is that of accept¬
ance by the
governmental corpor¬
ations

Treasury

free

capital
and

from

then

the

investments

governmental

se¬

curities which produce interest in¬
come
for the corporations. This

opportunity to realize "hidden"
operating income from the pub¬
lic Treasury is presumed to be one

land bank

system,

the

commissioner loan

and

feed

and the

S. Department

terior.

I;,':; .'■V^y

eral

government,

government

was

$9,715,000,000.

the

federal

land

bank

tem, capital stock ownership is
being taken over by national farm
loan

associations through

com¬

pulsory system under which bor¬
must take out stock in the

rowers

loan

associations,

purchase stock
of June

lars

which
the

turn

banks.

30, 1945, 188 million dol¬
governmental funds

were

invested in capital stock and paidin

surpluses of the
banks, as
against 71 million dollars of capi¬
tal

stock held

sociations

by cooperative
direct

and

as¬

borrowers.

Title to the entire amount of

some

153 million dollars of earned

sur¬

pluses that had been accumulated
of

out

operating earnings, how¬
ever, was held by the cooperative

associations and direct borrowers.
All of the government-owned cap¬
ital stock of nine of the 12 fed¬
land banks had been retired

eral

June

these

30,

banks

1945, and five of

also

had

Out

sys¬

retired

all

but

the

one

capital

been retired.)
In

the

tem, there

are

credit

56 million dollars

capital invested by
the production credit corporations
in the capital stock of production
associations. An

31 million dollars of
of

the

additional

capital stock
is
privately

associations

deficits

the
as

the

approxi¬

billion

States

came

by the agencies.

as¬

debentures,

of the Pittston

Both the bonds and the de¬
were

priced at 100 and
J

gether

with

other

funds

ation

promissory notes totaling $2,000,-

company,

gross
of

excess

approaches

they

100
//

MOINES,

•

million

>/•
'■

000, payable in four annual instal¬
1947-1950.

" ments,

111

The

bonds

redeemable

are

prices ranging from 104
prior to Aug. 31, 1951, to

Day
IOWA

12th

the

debentures

The

—

of the day

sun-up

The Pittston Co.,

sidiaries
tion

amusement-

prizes.

eral

Cummins, Inc., Equitable
ing, Des Moines.

credit insti¬

savings and loan associations,
building and loan
a(id savings and loan associations

anthracite

and

Registration fee is ten dollars
Further details may be had from
Roy W. Leriche of Wheelock &

which rare exempt from
federal income taxes include fed¬

bituminous and

sub-bitu¬

minous coal, in the wholesale and
retail distribution of bituminous

including the awarding of ddor

Institutions

holding com¬
operating sub¬
engaged in the produc¬
a

pany, owns various

will be golf and tennis

other forms

and in

coal

and

fuel

income for

the

1945 amounted to $46,and net income for the

342,283,
same

period

$2,305,436. Total

was

Frank

and

its subsidiaries reported as of Dec.

Frank Nevins Dies

31, 1945,

Nevins, an associate
Brothers, Harriman &
Co., bankers, died at his home in
Port Washington, Long
Island, on

cal¬

endar year

current assets of the company

savings banks, coopera¬
tive banks, labor
banks, federal
credit
unions; and non-federa
credit unions.

oil

trucking and warehousing.

Consolidated

Build-*

state chartered

mutual

The

redeemable at any

unpaid
subject
to
redemption
through
operation
of
sinking
funds
at
prices from par to 104.

sun-up.
Festivities will begir
with breakfast at the Hotel Fori
Des Moines at 8:30 a.m.
Features
and

100, if
31, 1958, to¬

principal amount and
interest.
Both are also

are

at
or

time at their

Wakonda

Club in Des Moines from

gether with unpaid interest.

Investment Bankers Associ¬
will hold its field
day on

September

the

es¬

Field
Iowa

sale, to¬

of their exemption

well

reason

DES

Privately-Financed Credit

Priyately financed

1964,

redeemed after Aug.

income

will be used to pay the
company's following indebtedness:
a
promissory note for $6,000,000
payable in five annual install¬
ments, 1946-1950, and collateral

!ov?a favestm't Bankers

loans made

the

Net proceeds from the

borrowers, the

Jan.

Co.

business,

■_•/—mm—-

Federal Tax Exemption for
-

have

dollars annually.

Approximately two-thirds

from interest

may

measured

privilege

operating

Co.,

trust

cumulative

due

dollars, and that the fed¬

cape

total

gross

;

returns

eral income taxes which

operating ex¬
penses
(excluding
Commodity
Credit Corporation subsidy losses)
of 236 million
dollars, or net op¬
erating earnings of 103 million
the

accrued interest.

governmental credit agencies had
a
gross
income of 339
million

collateral

in the Treasury De¬

earnings of

making
$9,900,000,000 \ of
loans
during the 1944-45 'fiscal
year, including loans to other gov¬
ernmental
agencies as well
as

dollars.

information

incomplete, it

United

and

com¬

bentures

volume'

$5,971,000,000.

dollars

sumed that tax exempt privatelyfinanced credit institutions in the

proprietary interest in the agen¬

loans to individual

Blair

offered

liability

aeing

reduce the net book value of U. S.
cies to

banks

tutions

sys¬

of government

credit

earned

Pitfsfon Securities

tax

partment report are recognized as

mately $3,743,000,000. These losses

has

■;

production

investment,

commercial

represented

represented by excesses of expen¬
and by the government's share

stock

banks

this

income

;

ses

paid-in
surplus.
(Since the close of the fiscal year

■

federal

Since

agencies

Treasury has sustained losses

government

government-owned

the
;: »<

net

Inc., on Aug. 29
public $7,250,000
15-year sinking
parable volume of gross and net
fund 4 °Io bonds, due Sept. 1, 1961,
earnings would range from 70 to
and
$1,242,300
20-year
5 %%
77 million dollars.
of

loans, the total net investment of
'

Blair & Co. Offers

tax

institutions
had

approximately 394 million dollars.

Treasury

credit

returns

The

Including

.ex¬

making
earnings of

privately-financed

empt
the

approximately * 6V2

the

agencies

of mid-1945,
billion
dollars invested in
capital stock
and paid-in
surplus. For the most
part, this is "free" money for the
had

ministration, and the activities of
Security Administration.

the Farm

Department report indicates that
! the

treated in this report as being en¬
gaged in credit activities, the Fed¬

agencies.

crop

of In¬

In the 22 governmental

loan
program of the Farm Credit Ad¬

their

turning around and, in effect, reloaning it to the Treasury through

land

bank, banks for co¬
operatives, and federal home loan
bank systems, as contrasted with

privately-financed banking in¬

stitutions.

bursement for

1281

were

$14,702,625, against
$9,897,-

total current liabilities of

Brown

391.

Pittston's outstanding capitali¬
zation, giving effect to the new
Sept. 3. Mr. Nevins had been with
financing, will be as follows: Col¬
empt from federal income taxes the
parent over-capitalization of the
banking house and its pred¬
lateral trust 15-year sinking fund
governmental credit corporations million dollars invested in banks under, provisions of Section 101 ecessor,
Brown Brothers,
for 4%
of the Federal Internal Revenue
bonds, due Sept. 1, 1961, $7,as compared with
privately-capi¬ for cooperatives and borrowing
tjiirty-five years said the New
Code.
250,000; 20-year 5V2 % cumulative
talized financial institutions.
York "Times," which stated that
cooperative associations have $5,income debentures, due Jan. 1,
One of the most tangible ex¬
Data, compiled by the U. S. he retired three months
600,000 so invested. Here title to
ago on 1964,
$3,236,000,
and
common
amples of the use of this financ¬ the earned surplus is
divided, with Treasury Department from incom¬ account of failing health. The stock
($1 par), 586,092 shares.
ing device is provided by the fed¬ 32 million dollars
"Times" added: 1 V *
being credited plete returns filed by these insti¬
■/..>
eral
government's
production to the government and approxi¬
Born in Maitland, Fla., sixtycredit corporations
which, having mately lmilliori dollar^ to the tutions, as a result of the 1943 four years
Tecklin With Lewisohn
ago, a son of Dr. Rus¬
53 million dollars of
legislation requiring the filing of sell H. Nevins and
Treasury ad¬ cooperatives.
Lewisohn & Co., 61
the former
Broadway,
vanced capital and a substantial
In the federal home loan bank
information returns, show a total Catherine
Brown, Mr. Nevins was New York City, members of the
amount of accumulated
surplus, system, the federal government of
11,982 such institutions report¬ graduated from Yale in 1902. He New York Stock
have invested
of

the

explanations

for

the

ap¬

owned. Title to 34 million dollars

All of these institutions

of earned surplus is not clear.
The federal government has 178

are

ex¬

there

was

dollars

from

income

fiscal year of

600,000,

million

obligations

which

the

last

approximately $>1

than

enough to
meet the total
operating expenses
of the corporations
during the
year.

Other

governmental

quasigovernmental credit agencies with
substantial
ment

amounts

govern¬

provided capital and of in¬

vestments in U. S. interest
bearing
obligations include the production
credit associations, federal inter¬
mediate credit banks, banks for
cooperatives, federal land banks,
Regional Agricultural Credit Cor¬
poration, Reconstruction Finance

Corporation, federal home loan
banks, Home Owners Loan Cor¬
poration,. Federal Public .Housing
Authority and Federal Housing

has 125 million dollars invested in

capital

stock,

while

privately-

financed member institutions

own

69 million dollars of stock. In this

again, the full amount of
20 million dollars of earned

case,
some

surplus
is
credited
stockholders.
These

facts

are

business

cited

private

not

transferred

examination

the

"bad"

business
which

the

being reimbursed in full for

funds, and under which

the

owners

apparently

Cooperatives
most

Size

significant
ap¬

parent pattern, particularly in the
agricultural credit field, by which
the

federal

government

is" first

establishing its "good risk" lend¬
ing

businesses

basis and then

—together
•

substantial

turning them

with

accrued

cooperative

associations

over

profits

therefrom in some instances

—

while

it
retains its "soft credit" businesses
and directly foots the bill for the

losses
The

federal

government,

-other words, is

establishing "hare
on
a
going
basis
and
then
retiring
from
ownership without claiming reim¬
credit"

businesses

was

first

become associated with them. Mr.
Tecklin

Kidder & Company.

'j.

for sale

was

circumstances

solicitation of

be construed

as, an

1—1

r"'

Haskelite
...

tr;

vh'J

Manufacturing Corp.

(A New York; Corporation)

»/*-!-"*•*

•f.r

Fifteen Year 4l/z% Sinking Fund Debentures
'Due August 1, 1961;
Common Stock of the

purchase

Company

The governmental credit
system
includes not only the complete

system in the agricultural credit
field, but also the numerous lend¬
ing activities for business of the

Price 100% :

;
,
and accrued interest from August 1, 1946

Finance

Corpora¬
tion and lending activities in the
housing field by the RFC Mort¬

Company, the Federal Na¬
Mortgage Association, the
Federal Public Housing
Authority,
gage

the

Federal

Home

Loan

Owners'

Copies of the Prospectus may be obtained from only such of the under tinned
are
registered dealers in securities in this State

Loan

Banks,

Corpo¬
ration, and the Federal Housing
Administration, plus lending ac¬
tivities by such agencies as the
Export-Import Bank of Washing¬
ton, the Federal Works Agencies,

$1,100,000

Scope of Governmental

tional

NEW issue

Credit System

Reconstruction

formerly with A. M.

offering oj these

offer to buy any of such securities.
The offering is made only
by the Prospectus.
*'•
'
or as a

with detachable bearer Warrants
and

the

therefrom.

are

"Good

trends to be observed in the
gov¬
ernmental credit system is the

use

of public
new

War

stationed in Washington.

Treasury

securities

being retained;
Treasury is not

the

practices

Business
of

under which the C"good" business
is
being transferred, while the

under

World

This advertisement is not, and is under

into

falling heir in some instances to
earnings
accumulated
by
the
during : governmental
ownership.

One

analysis

agencies

Risk"

but they are
indicative of the need

first

Brailsford & Co.
August 30, 1946

an¬

that Joseph E. Tecklin has

nounce

lieutenant in the ordnance branch-

credit

approximately 834 million

Transfer

Administration.

entered Wall Street in 1910. In the

receipts vol¬

gross

dollars.

ownership,

set forth

for

governmental

ume

private

criticism of the general policy

permitting

Exchange,

ing for 1943

«■

vealed,- looking to

end of the

Looking Ahead Ten Years

conflict.
The Dominion Bureau of Statis¬

Canadian Securities
While it is very easy

labor conditions associated with reconversion from

tled industrial and
to peace, no

for even the experienced analyst of Cana¬

today to attach undue importance to the unset¬

dian business affairs

to be blinded to

one—least of all the expert—should permit himself

the fact that the economic skies

the land.

from

the -long

both

of Canada are bright

casting their shadows of uncertainty over

despite the dark clouds
Seen

tics

WILLIAM McKAY

war

Thursday, September 5, 1946

TM£ COMMERCIAL & FINANCIAL CHRONICLE

1282

and

the short range view, with due
regard for all the present frictions
economic

the

the pros¬
pects for the further and con¬
tinued development Of Canadian
be considered noth¬

commerce can

Canadian Securities

scene,

reported

Saturday that carloadings for the week ended Aug.
24 reached the highest figure for
any week this year, totaling 73,469 cars compared to the previous
high of 70,863 and the level of
74,329 cars for the corresponding
period of last year. The Dominion
Bureau of Statistics also revealed

that

store
sales in
17% below the level of
higher than sales

department

July

were

June

but

20%

July

this

the

19%

also

were

year

than

year.
Cumulative
first seven months

last

for

totals

sales

greater

the

for

•

(Continued from first page)

•

slump.

severe

Under

could have

this

good stock
market for 12 more months; but
the
stock
market usually
turns
theory

downward
Such

before

forecast is

business
on

should

above

dicated

fairly

safe.;c,0;-w;
BUY

turns.

HOME IN

"LITTLE

WEST"

THE

the assump¬

Investors living in large cities*
will
If, how¬ however, Should buy something
more than stocks and bonds. They
ever, 1948 should give a Repub¬
lican victory this should lengthen should NOW build a small house;
the period of prosperity, full em¬ with land sufficient for a kitchen
garden, in some small community
ployment and high wages. *
tion

that

Democrats

the

squeak through in 1948.

Perhaps Forecasters Are Wrong

Central

the

relatives

where

same

live.

The

above, however, does not
recognize that the whole world is
in the throes of a people's revo¬

months last year.
The index of wholesale

but securities in-,

greatly .suffer;

believe

West

South

n6w

friends

life

fire

and

insurance: but the most important

prices
insurance today for city dwellers
ments in the picture are more declined .4 to 109.5 (1926=100) in
lution.
It assumes that the old is to learn a trade and to have
significant than the negative fea¬ July as compared to June but the
market
rules
are
still reliable. a safe refuge to which they can
tures as even the briefest survey
July level was 1.1 higher than for;
This may be, or may not be, true. run if world conditions get too
of all the available facts is cer-; the * same month last year, the
Peace Conferences may had.
Dominion Bureau of Statistics also Perhaps
tain to show.- >
i^T ~
"
"
* ' i
upset business and stock market
The mere fact that the United
reported. Lumber production in
traditions as well as political and
719 sawmills east of the Rockies
ing

The

good.

but

positive ele¬

...

investment in

States

creased

MARKETS maintained in,
,

bonds.

executed

orders

net .!

New York Prices.

extended, that is, was able
as well as willing to extend, $235,000,000 in export credit and other
similar aid to British and foreign

Toronto and

take place

Buffalo,

in earnest. The demand

instance, is said to amount to tens
of thousands of tractors, combines
and trucks. '

Montreal

Donimox Securities
Corporation
40 Exchange
New York

Place

5, N. Y.

-y.

Bell System Teletype

423,000

also

Statistics
The

nounced.

Dominion

the

May,

Bureau

chartered

military, t Perhaps

the

world

v.-'• •i'-v*i

NY 1-702-3

Sciierck-Richter Go.

The
an-;
bank Paris,

fights now going on in
supplemented by fears of
"atomic
biologic - supersonic-

for

Joseph Sestfic Joins

entering a new era such as occurs
only once in 150 years.

•

ST:

LOtJIS, MO.

—

Joseph P.

Sestric, Deputy Regional Director
in charge of the Office of Admin¬

July, issued last an
week, revealed that savings on gaseoiis- hemispheric - Arctic and
deposit
in
Canada's
chartered sub-Arctic war" may bring about
banks on July 31 amounted to $3,- a
people's - World Government
410,865,000 against $3,363,474,000 with the elimination of present
-

istrative Services of the St; Louis

of War Assets Administra^
tion, has tendered his resignation
to assume an executive position
on June 29 arid $2,740,641,000
on tremendous military expenditures with Scherck-Hichter
Company,
and unnecessary national barriers.
governments. ' '
•
! July 31, 1945.
Landreth Building.
t
;J
•Labor Minister Mitchell report¬ If so, the resulting stimulation in
Canada
Mr. Sestric, prior to his appoint¬
materially
improved
ed last Friday that unemployment foreign trade, reduction in taxa¬
her manufacturing apparatus and
ment in May, 1945, by the Reconf
has been reduced in Canada from tion, increased production, lower
struction Finance Corporation, to
techniques to meet the needs of
267,000 on April 1 to 149,000 - on world prices and better living coordinate sales and accounting
war
and all reports and indica¬
tions are that now the industrial¬ Aug. 15. In the coal mines where standards for every one could give functions in the disposal of Sur¬
26,000 were employed, he said, us 10 or 20 years of great pros-,
ization of the farms is about to
plus War materials, was a close
for improved farm equipment, for;

Direct Private Wires to

board
with 169,-

211,483,000

statement

years

office

(for dealers, banks and Q
institutions) on the Montreal and Toronto Stock
Exchanges,

feet in June compared

seven

Canada

Canadian
external and internal %,

Stock

amounted

ing moment, too, is the news that
up to the end of July this year,*

stocks

all classes of

by $735,000,000 during the

is in itself a most
encouraging sign that can't by the
logic V of
things be
completely
brushed aside. Of more than pass-1

last

bonds

in¬

Canada

Consideration

should

also

given to recent reports that many
Canadian corporations are enlarg¬
ing their facilities. The Aluminum
Company
of
Canada
has
an¬
nounced, for, instance, that it is
spending $450,000 to increase the
aluminum sheet capacity at its
Kingston, Ont., mill. The Packard
Motor Corp. of Canada expects its
new
$300,000
office, '^shoWroorrt
and warehouse at Windsor, Ont.;

skilled

could be used.

men

perity.

associate

The combined net earnings of the
Canadian National

and

Pacific^ Railways

for

the

Big Boom

Canadian

months of this-year, how¬

seven

they

half

approximately

Were

ever,
what

first

were

in'the like period

a year ago, according to informa¬
tion released by the railroads. The

net

combined
seven

during

first

the

months of this year totaled

$34,602,000 compared with $69,598,000 in the same part of 1945.
The Dominion Bureau of Statis¬
forecast

has

tics

bumper

crop

half-way
and

10-

Chaos

old

20-year cycle theory can

General

Postmaster

Hannegan,

.Robert

The

program.

the

when

served in St. Louis as Col¬

latter

later

Internal

lector

and

Revenue

Washington

Commis-r

The business

out¬ .sioner, had been with the Internal
Big Four Revenue Bureau for seven and a

discarded.

certain that there will be

It is
no

■

look

depends upon the
Paris, and not upon Wall Street .half years. He was appointed head
or Congress or labor leaders.
Sec¬ of the Income Tax Division by
retary Wallace talks about "Boom Hannegan in January, 1943, and
AND Bust."
1 say that we are when Hannegan became Commis¬
facing either "Boom OR Bust." sioner he moved to a post in the
Secretary Wallace's advisors are planning section of the Internal
making a big mistake.
Revenue Bureau in Washington. ;
As
chief of the Income Tax
If so, now is a time—during this
'-international scare" of 1946—-to Division he introduced a number
in

yield this
season may amount to as much as
of new procedures to expedite the
15,940,000 bushels. All provinces buy securities as it was smart to
to be completed by Jan. 1. A new
except Nova Scotia are expected buy stocks during the depression handling of taxpayers' returns,
$4,000,000 pulp mill is planned at
scare
"of the 1930s"; and again and in 1944 conducted an income
to share in the increase.
Edmundston, N. B., by Fraser
tax school, the first of its kind in
The general tone of the stock during the "real estate collapse"
Companies, Ltd.
Another new
of a few years ago. On the other St. Louis, for businessmen, tax*,
markets
was
better in
Canada
pulp mill, to cost $10,000,000, is
payers and accountants Who as¬
than in New York during the last hand, unless the Big Four get to¬
being planned for Blind River;
gether to give the people a World sisted others in making returns.
week,- The industrials weakened
of

The

apples.

apple

CANADIAN BONDS

GOVERNMENT

east

PROVINCIAL

the

Huron

South

St. Marie,

Ont., by

Products

Forest

Co.

The

Goodyear Tire & Rubber Co.;
plan¬
a $2,000,000 expansion of its
plant at New Toronto.

of Canada is also said to be

MUNICIPAL

ning

CORPORATION

Salle

Extension

Bulletin that in Canada "the

outlook

months of the

year."

Signs are visible,
only feebly,
that

A. E. AMES & CO.

nears

ance

INCORPORATED

in
C.

cause

Canadian

much disturb¬
industrial

ers':

NEW YORK 5, N. Y.

Union, went to

New

general

Potter & Cooke in N. Y. C.

Ottawa last

Potter

Cooke,

New

Stock Exchange member

120

will

acquire

Mr. Cooke in the

by Mr. Potter.
was

& COMPANY

All

Whaley &

Potter; Talcott, Potter & Co., and

individual Floor
-

Bonds

3-1874

Mr.

Cooke and Junkin & Cooke.

Dominion of Canada

TAYLOR, DEALE

partner in Sierck

re¬

Ex¬

the Stock

change membership formerly held

past

Issues

and

Government

tarism,

are

we
War III.

This could

eliminate

mili¬

headed for World

come

within five to

10 years

and would surely result
in wiping out the big cities of the
world.
Boston, New York, Phila¬
delphia,
Baltimore, : Washington,
Pittsburgh,
Buffalo,
Cleveland,
Detroit, Chicago, San Francisco
and Los Angeles could be smashed
first

the

hours of the war.

Hence, I say we are headed either
Great

for

Prosperity

else Ter¬

Shall U. S. Investors Do?

What

people of our
small rural communities, especial¬
For

the

once

ly in the South and Central West,
away from large cities, are in an
enviable position.

They need now

only invest in a diversified list
of well-selected industries which
—like certain chain store compa-1
nies—have their assets distributed

SECURITIES

securities should be kept in atomic

Incorporated

Government

Municipal

Provincial

Corporate

14 Wall

and

important .contracts

surely

deposited

with

Street, New York S

Direct Private Wires to Toronto & Montreal

safe

rural

Photostatic copies of wills

bank..

Wood, Gundy & Co.

posal of surplus properties, as well
WAA, Mr. Sestric instituted

procedures

many

chasers of surpluses

ing

soonen

peace
.

aiding pur¬
in reconvert¬

operations

time

;

Prior to his tenure in

govern¬

Mr. Sestric was
with St; Louis financial houses for
ment

service,

six years.- -

•

his

Besides

reputation

athletics

for

many

Vice-President

and is
Municipal

years

the

Athletics ,A£SOCiation of

St.,Louis.

H. L. Lind Elected
To Beard of IBA
PORTLAND, ORE.—Herman

several hundred interior com-<

else in a vault of some safe

CANADIAN

Finance

Corporation, forerunner of War
Assets Administration in the dis¬

Lind, partner in Camp & Co., has
munities.
Then if World Peace been elected a member of the
Board of Governors of the In¬
comes, they should greatly profit
vestment Bankers Association of
thereby; while "if Chaos comes
America for a three-year term.
they will have saved their lives.
Mr. Lind will take office at the
People of large cities should
Associations annual convention in
also have their funds in such se-^
curities as above outlined.
These Association's annual convention in

bombproof safe deposit vaults or

Bought—Sold—Quoted

Reconstruction

the

With

outstanding tax expert, Mr. Ses¬
tric has been active in amateur

rible Chaos.

A. Brendan Cooke,

Potter and

who

New

Partners will be Earl

York City.

broker.

not

firm, is

Broadway,

were

York

being formed as of Sept. 12th with
offices

did business as

which

but

unchanged with

were

cials there and the government it¬
self advanced new proposals, the

York,

volume restricted.

Potter was a partner in

details

WHitehaU

week to discuss the general labor
situation with government offi¬

NY-1-1045

84 Wall Street, New York

cir¬

H. Millard, National Di¬
rector of the United Steel Work¬

TWO WALL STREET

RECTOR 2-7231

the

cles.

too, even if
a
settlement

in the steel strike which has

been

for

relatively stable
conditions in both agriculture and
industry with an upward trend
in many lines for the remaining

CANADIAN STOCKS

Canada

University

has pointed out in its recent Busi¬
ness

the golds were firm. Both Cana¬
dian external and internal bonds

country

comes,

bank;

corporations

of their assets in

should
some

Florida

December,

Fred M. Blankenship

succeeding

of Blanken-

ship, Gould & Blakely,* Inc. Mr.
is one of two members of

Lind

the board from the Pacific

North¬

west

District, which includes

Ore¬

gon,

Washington, Idaho and

Brit¬

Chaos ish Columbia, the other being Lyle
Wilson of Ferris & Hardgrove,

having most

large cities will

Seattle.

kVolume 164

Number 4522

THE COMMERCIAL & FINANCIAL CHRONICLE

.mi

of currencies in

other.

■"

exchange for each

—

Firm Name

Changed to
Gearhart & Co., Inc.

I T

(Continued from first page)®.

xYe have

s®

funds

ury which resulted largely from

all the seeds of in-

sown

the

flation.Some stabilization efforts
have been ; undertaken, - but at

„

present

the

all

the, Treas¬

accumulated

fact that the last bond

brought in

drive

the

money than

between

supply and demand as
as possible.
v
Surplus liquid funds in excess
of goods at present prices should
soon

v,v;vj

with

are

Treasury needed.
*
/• :
'■
>
Funds for speculation have been

us.

Inflation lit the United States $

Mi'M

■

•

In March

be directed into

restricted

conditions: for

dangerous inflation

badly "needed to increase the
production of consumers' goods.

are

for

1933, the United States

and

100%

cash basis.

installment

commitments

new

sales

Credit

has

down

been

profitable produc¬
through capital investments

tion

large part of the government

Treasury
ments.

iff

tightened.

payment has been increased and
the duration of the payments re¬

These short-term debts should be

duced. The Reserve banks

refinanced

suspended
gold
pay¬
Since 1900 all forms of

■

money issued by the United States
had been as good as gold because
they were convertible into gold at
the definite
weight and fineness

-liiM'f

of the

gold dollar established

Congress
monetary
pension
-

measure;

gold

States

in>

The

use

would

from the banks

remove

through

must

free

the

through

government

the

conversion of
debt - into
money

country's

of keeping the banks sol¬
vent in case a crisis should arise

cipal assets to pay their demand
deposits.' M\ ' '
•'
M'M
Costs and prices will be brought
into balance by the laws of com¬
petition when production balances

and

World

are

maintain

Company will
maintain

the

offices

same

Fund

dependable

firm.

Nassau

Street,

their

New
City.

York

icies of free markets for gold can
currencies of the world be

Mr.

Gear¬

the

hart has

brought into -a definite relation¬
ship with respect to a common
unit, of measure, and thus stabi¬
lize international prices in terms

in Wall Street

money

rates

foreign

and

terms

of; gold

for

about

Gearhart, Jr.

and

years

since 1930 has been associated with

exchange

convertible into gold.
A
free
gold market

been

predecessors of the present com¬
pany.
About three years ago the

money

firm

added

underwriting

to its
trading
and v
Since that time
gets at the real causes or
countries would speed up the sta-, it has
progressed steadily in the
supply against demand1/ The pres¬
dangers of inflation.- The infla¬
bilization of prices and the foreign field of
financing to a point where >
tion potentials are in the; excess ent scarcity o£ goods and the re¬
exchanges. No other factors could the firm estimates that today it is <
to
money and credit. Except for the straints
productiori,' coupled
do so much, in my opinion, to
doing better than 90 % of all small
reduction in the government debt, with the money buying power in
stimulate trade and economic re¬ financings.
the stabilization efforts have done the hands of the people, and the
covery as free markets; and al¬
The firm has headed and par¬
little more than advertise the fact spiral of wage and price increases,
that inflation danger ; signals are can only result in more dangerous lowing the law of supply and de¬ ticipated in more than $20,000,000
mand to take its natural course.
in underwritings during the first
price and cost inflation malad¬
flying in all directions;
The success of the World Fund in
eight months of 1946.
justments.
carrying out its technical stabili¬
j
Dangersof Inflation
® Among the helpful steps to re¬ zation of the currencies will be
j The pent up possibilities of fu® strain the
present.inflation threats determined
by the freedom of the
ther inflation lie in the excess Would be
a return to sound money
markets. : Free gold markets and
liquid funds and their potential and sound financial, policies; free
free money markets are the keys
velocity
if an
excited - people, markets, and freedom for compe¬
'
to the stabilization of the, foreign
either from fear or prosperity il¬ tition
to
determine
prices and
CHICAGO, ILL.—Detmer & Co., '
lusions, make up their minds that costs. No other forces can do so exchanges and international
105
prices.
South La Salle Street, an- re¬
;;
they had rather spend their money much to
speed the processes of
nounces that John A. Frederickand get some use out of it now
production and investment in new
[I gratefully acknowledge
son, has become associated with
than take the risks of holding on
capital as <the; stimulus of profits
them as a member of the firm.
to it while prices rise. It is im¬
j my indebtedness to Dr. Ivan
and freedom of qreative opportu¬
I Wrjght, economist, New York,
Frederickson, a La Salle Street v
possible to! state accurately ^ the
nity.
)
figure for thirty years, began his
J for valuable help in preparing
full extent of this potential in¬
}
•

•

United

States

and

all

the

usual

other

business

•

arbitraging, etc.

Frederickson Joins

Detmer & Co. Staff

the

increased

In June,

Banks

held

$2.6

billion

flation because the present liquid
funds are so much larger in rela¬

government

bonds, and by June, 1945, the
holdings of the Federal Reserve

tion

Banks had increased to $21.8 bil¬
lions. During the same
period the
commercial banks increased their
ownership of government bonds
from $15.7 billion to $84.1 billion.

purchased than

from

[ The annual rate of turn
demand

Gity

the

1929, the turn-over of demand de¬

posits
17.6

in 1940.

York
one

in 1940.

A glance at these records of de¬

small- compared with to¬
vast unused liquid' funds,

readily

debt

has

been

brought about by paying off gov¬
maturities with surplus

ernment

maintain¬

Exchange Member

will become

great contribution to the stabili¬
rates and in¬
In order to
bring about stabilization of money
values
and
international prices,
the first essential

seems

to be for

each country to put

its own money
price structure in order. To
do this it is not necessary for each
country to return to a fixed gold

ress

will

Stock

National

currency

N. Y.

in this endeavor it will have made

zation; of exchange
ternational prices.

debt,

Weinress & Co. to Be
-} CHICAGO,

Federal

ILL.—Morton Wein¬

acquire

Bank

with the First
1933, when ?

until

he became associated with Demp-

]

sey-Detmer & Co., more recently
changed to Dempsey & Company,
where he has just resigned to take
up his new duties.

A. M.Kidder Wire to

the New York

Exchange membership of
Melville 'F. Sachs and

the' late

Buffer-Huff & Co.
: A.

Kidder

Co., 1 Wall *
Street, New York City, members.:
New York Stock Exchange, an¬

partner in Weinress
& Company,; 231 South La Salle
Street on September 12th. Other
partners in' the firm are William

nounce

service

Weinress, member of the Chi¬
cago Stock Exchange and Chicago
Board of Trade, and George R.
Joslyn,
', : ®
„

fast coast-to-coast

Co., 210 West Seventh Street,
Angeles, California.

Los

standard. There are three wellknown types of gold standard—

the gold coin, gold bullion, and
gold
exchange
standard. ;; Each
country should establish a type of
money system andmoney value
that serves its needs best. It is
neither

that

necessary

the

fixed

nor

desirable

price of gold be
unchangeable.
Gold

money

and

the

conclusion

goods- and

-again

services

be"

left

free

and" its- price

the attempt to peg the price of
gold, in inflated currency; we are

witnessing today

many

hundred

different

prices for gold, in the same cur¬
rency? all over the world.
In

Switzerland, for example, gold is
selling for 50% more in the black
market

in Swiss money than the

for

present

credit

and

excess

available,

money

almost

any

effort the government might" make
to
control' inflation" by. holding
the prices of essential

tive

goods would be

;

* '

•"

waving
'

flag at

a
-

con¬

ineffec¬

cyclone.

Policies to Mitigate Inflation

In this country, as in the whole
world, the outstanding economic
need is to
bring about a balance

INVESTMENT

BANKERS

different

price in almost
every country in the world.
But
this difference in the dollar price
of gold is a reflection of the scar¬
city of dollars and dollar ex¬
change available to buy American
goods.
A free gold market in
which gold would be sold at the
market price in. dollars or any
other
currency
would
quickly
bring about a "correct evaluation
of currencies in terms of gold and
a

)

Members New Yorlc Slock

Other

Exchange and

•

■

Leading Exchanges

UNDERWRITERS AND

DISTRIBUTORS OF

..INVESTMENT SECURITIES

BROKERS OF BONDS, STOCKS,

Private Wires

•

wire

through the opening of a .V
direct private line to Butler-Huff

and

standard price fixed for gold. In
American dollars gold is selling

sumer

re¬

for

exceed

Federal

and

psychology should manifest itself

the

duced by about $10 billions. This
reduction in the debt has been

countries

inflation.]

ing this; stability with a greater
amount ofiflexibility than
the
rigid international gold standard
of the past. If the Fund succeeds

withthe

$1.8

to indi¬

war

the supply of; goods pos¬
sible under the best, production
conditions.
If such an inflation

from

the

member

continuing

the

would

gross

per cent

down
end

society so well. The World Fund
how in-process' of organization is
charged with the functions of sta¬
bilizing
the
exchanges
of
the

with the Sate Bank of Chi¬

cago,

about

| bank deposits and

the gold standard, no other money
has been as stable or has served

must

rela¬

was

j the .'20's, the

V Our Stabilization Efforts
the

spite of:the imperfections of

career

tion

subject to supply and demand as
any other commodity. Because of

credit

and

money

demand

cate the trend of the potential in¬
flation in the United States.

Since

was

that if: the turn-over: should
reach the velocity of

one

leads

lions in 1939, and increased year
by year until in 1944, these ex¬
penditures amounted to $99.4 bil¬
lion. During the same period the

serve

1944

tively

and services amounted to $16 bil¬

annum

the

day's

per

for

record

I In

this outline and for informa-

;

posit turn-over when the volume

the Federal Reserve
Bulletin of November,
1945, gov¬
ernment expenditures for
goods

These facts

January, to 17.9 in

The

A Ffee Gold Market

Ac¬

cording, to

billions

22.9 in

spending far exceed the supply of
gpods to be purchased or invest¬

billion.

17.4.-

busi¬

private

for the

cities

leading cities reporting
17.9 in January, 15.5
May, 18.7 in June, and 15.2 in
August,.and 20.4 in December.
in

activity and speculation. The
liquid funds made available for

declined

and

other

hundred

ness

expenditures1 for
capital formation

20.5

was

May, 24.3 in June, and 30 in De¬

goods and

ment opportunities of merit.

other

1943, the rate for New

City

cember.

velocity of

non-war

hundred

from

money.

hundred

During 1944, the monthly average
rate for New York City varied

elsewhere, the excess
supply drives down the price, or
iri this case, the rates for
as

held

declined

in 1929, and then declined to 18.8

keep interest rates
declining. In the money

the restrictions

York

increased from 32.2 in 1921 to 40.5

credit to

money and credit was
check by the scarcity of

New

cities the annual rate of turn-over

and

the

deposits in ! New- York
from 54.9 in 1921,;'to

the collapse of the speculation in

ernment bond collateral have fur¬
nished the ample supply of
money

war

over

1929, and this was pri¬
marily a credit - inflation specu¬
lation spree in securities.
After

bonds

During the

in¬

rose

124.4

in bank deposits and the increase
in the
supply of Federal Reserve
note currency issued
by the Fed¬
eral Reserve Banks
against gov¬

market

some

spending,

purchase of
by the banks.
The propelling force in the
money
and credit inflation has'been the
government deficits. The increase

low and

be¬

experience in

our

dication of the effects of increased

the increase in bank
deposits

resulting

had

ever

However-,

the twenties will furnish

circulation,

government

to the supply of goods to be

fore,

The real inflation dangers in the
United States lie in the great in¬
crease in
currency in

gross

<'."*•

zation

from $16.2 billion in 1930 to
$279.2
billion
in
February 1946. & The
debt has been reduced to
$267.2

$10.9

the

None of these efforts at stabili¬

and

branches- of

economy.

June

ess

while the banks are large holders
of government debts as the prin¬

in \ all

liability of the government pay¬
able in gold before the
suspension

Reserve

•1

price.
gold for settling in¬

deposit li¬
refunding proc¬

essity

against buying land at the
present prices. Similar measures
orlsuggestions have been extended

July.

Gearhart

President
the

ternational balances either direct¬

Such

warned

June 1946. Bank deposits are li¬
abilities of the banks
payable in
currency, just as the currency was

at the market

abilities.

revision of the price stabili¬
zation law.
Farmers have been

than $144 billion in

Federal

Jr.,:

assets and reduce bank

the

currency

the

Gearhart,

and the money readily exchange¬
able .for goods and other moneys

which might result from the nec¬

inflation the total deposits of all

1930

by the member banks. Price reg¬
ulations have been eased through

member banks have increased from

billion dollars

Frederick

market must be free

money

•

nouncement

stability. Only through these pol¬

suspension of gold payments
purposes until now
circulation is about $28 bil¬
lions. In addition to the

Government

bank

the

currencies

domestic

Federal

given

the debts from the

Co.,
changed to Gearhart & Company,
Inc.,
accord;
ing
to
an¬
by

this

have

the threat of paper money infla¬

the

of gold
payments.-, ."The gross direct debt

the member banks and

the Reserve Banks be

This would

underwriting
of Kobbe,'
Inc., has been

firm

confidence

until

markets

million

require¬

reserve

debts

order

tion

and

900

the

term

Gearhart

money of current use must
have the confidence of the people.

the holdings of government bonds

long

years.

the

name

investment

and

the

currency in circulation was a
little more than five; billiori: dol¬
lars. The circulation has
steadily
increased: since the* devaluation

billion

into

five

The

bridging temporary emergencies.
Nevertheless, each country must
fit its monetary system to its eco¬
nomic needs.
For price stability

the

declined

content.
At the time gold pay¬
ments were suspended the amount
of

1933, to

increase

commercial

within

mature

remove

that

dent reduced the value of the dol¬
lar officially to a little less than
60% of its pre-devaluation
gold

$36

banks

the

and sold to investors.

ments

January 1934, when under powers
granted by
/Congress, the Presi¬

for

owned

sus¬

payments,

foreign

are now

debts

tion "visualized through the World
Fund can be of great .help in

increased powers to buy and sell
government bonds and manipulate

Upon the

dollar

amount

proposing that they be authorized

standard unit of

our

United
value

The

International cooperation is es¬
sential and the type of coopera¬

COMMODITIES

Home Office: Atianta

•

Phone i.D-159

12841

THE

COMMERCIAL & FINANCIAL CHRONICLE
One thing is certain—nothing
If

The only
(Mr. Eccles included) and
those in the Congress and the one in the White House will ever
put
our fiscal house in order is when
they see American investors giving
them back their 1V2% bonds until the reserve
banks, the treasury
time the

By JOHN BUTTON

problem which this nation must solve eventually,
and that is, "how can we reestablish faith in the soundness of the
one

American dollar?"

Some may argue

that to question the soundness
of the national currency is heresy—or that it is foolish to lose faith
in the nation's money and that all such talk is
demagoguery of the
worst type.
But the plain facts are—and practically every invest¬
ment banker, broker, securities dealer and salesman in the nation
knows this to be true—there is
soundness

country.

the

dollar

among

appalling lack of faith in the future
substantial investors in this

many

' ''
T:- '•''v.V-'
people who make the wheels go round, who put up the
capital for new industries, and who buy the bonds which supply our
state and federal governments with the funds that they use to cover
their ever reoccurring deficits ARE WORRIED ABOUT THE FU¬
TURE PURCHASING POWER OF AMERICAN DOLLARS.
That is
..

■■

■

The

why they are gambling in low priced equities in the hope of achiev¬
ing large percentage capital gains which are subjected to lower tax
rates, or buying farms, or tangible real estate, or black pepper and
other non-perishables such as art treasures and precious stones.
is why they are buying platinum and raw metals.

That
They have been
years and they are still doing it.
These people are not
isolated cranks but you will find them in every city and county in
the land.
They are the people of means—the ones who know the
lessons of history.
They are the savers and the wealth creators.
They know that the dollar is losing ground in the free gold markets
of the world.
They know where it is in Egypt, Siam and Sweden
today—and they are worried for good cause.

doing it for

They are worried because they know that it is an axiom of his¬
tory that when a nation once prohibits the conversion of its paper
money into gold, such as was done by this government in 1933, the
tendency is for it to go on and on to further deficits, more and more
unsound fiscal

policy, until at last complete repudiation of the cur¬
became inevitable, and in many cases final extinction of such

rency
a

government

They

even came

politcians in the federal

country becomes so involved in the process that the
Administration will be compelled to reverse its unsound policies.
Drastic medicine indeed—but nothing else would be more effective.
You

figure out what

can

their friends.
that

They

told that such talk is

are

lot of political eyewash

eight years ago and the country's not busted
All the while those who make such statements see no connec¬
tion between prevailing unsound fiscal
policies and curtailed produc¬
tion the lowered quality of merchandise which exists
or

YET.

today, the regimented economy which isn't solving shortages, and the higher prices
in every field of business and in the case of commodities.
Those
who fear for the future of their assets know the one true
lesson, and
that is, MONEY IS WORTH NO MORE THAN THAT WHICH IT
WILL BUY,

This is not intended

discourse upon a difficult and involved

subject, that is completely beyond the scope of this column which
devotes itself to problems pertaining to the retailing of investment
securities.

But

one

thing

salesman of securities

people

and

certain—the'writer

from his

own

happens to be a
experience he knows that
,

worried

today about the soundness of our nation's cur¬
rency.
He knows people who have bought platinum, farms, works of
art, stocks and real property—and they are not fools, neurotics, or
are

nincompoops—they worked hard for the wealth they have

accumu¬

lated and ABOVE ALL THEY DESIRE TO KEEP IT AND NOT SEE
IT FRITTERED AWAY IF IT CAN BE AVOIDED.
One of these customers

whether

asked the question the other day as to

not the writer believed

he should sell

some

government

bonds, stating that those he bought he only did so out of patriotism
during the war, and that he honestly believed he had far too much
invested in such

security.

security salesman in this
has

ever

The next question is whether

instance

learned about balance in

should
a

/':•<

his

eyes

all

securities

other factors with which this investor was
advise the retention of government bonds

siderations.

not

portfolio, and all the
concerned, and by so doing
regardless of all such

con¬
'

He knew

;

meant, and incidentally, it is our opinion if every one of us
of our own obligations those who are entrusted with the
soundness of our money would some day wake up to the fact that we
would insist that they put our currency back where it should be, on
a convertible basis into gold where no man or group of men could
manipulate its value and destroy our faith in this nation's promises,
care

its future.

debt

That not only means a balanced budget, but years of

reduction

before

reestablished.

convertible

Otherwise

could

currency

faith

have

again be

once

the

eventual

equity stocks think this

and

over

if well selected

see

stocks

common

not still one of the best methods of

are

depreciation.
he

v"'

worried about temporary price recessions in sound

are

you

can

Into what else

protecting your assets against
investor put his dollars where

can

convert them into cash if he desires at any

little inconvenience?

Meanwhile he

obtain

can

time, and with
income and

even

have

Common Stock
on

request

ii-

\tt

LIBERTY

STREET, NEW YORK 5, N. Y.

Inflation, Price Control
a

further $10 billion increase had

occurred

ties

from

ended

time

the

hostili¬

May 31, 1946. In
addition to the deposits and cur¬
rency, the people still hold a large
quantity of savings bonds which
redeemable

are

long

demand.

they are held,-they are not
for spending purposes,
though they may be regarded by
as

available

the

owners

set

view

feature.

highly liquid
the

these

Were

as¬

redemption
bonds

increase

over-all

107%, but
chief com¬

was

the rise of some of its

ponents was definitely more pro¬
nounced.
; The
largest
shares,
namely

salaries and wages, and
proprietors, rose
total of $60.6 billion in
$137 billion in 1945, an
of 127%. By comparison, v.

note

that the total

$83,564

Payment of taxes by means of
on
taxpayers'
accounts

transfers the deposits from

into

accounts

then used

funds were

increase of

deposits, namely
was
just about

there

million,
to the rise of total bank
holdings of government debt obli¬
gations in the same time. Once a

private
government's

the

To the extent that these

account.

debt

held

would

to redeem

the

and corporate

It should
noted, however, that the de¬
cline of total deposit obligations
would improve the reserve posi¬
tion of the banks, since a given
amount

subsequent spending never causes
it to disappear. Spending leads to

higher ratio to the diminished to¬
tal of deposits than it had to the
former, larger total. As the free

one

account to

his

an¬

would bear

reserve

expanded, the

reserves

excess

banks

other

create

1940 to May'31, 1946

'yy-fy/y U--;'.Total Amount

/ ^

addi¬

for

tional bank accommodation.

Deposits and Currency from Dec. 31,

Item—

Their dis¬

would depend

demand

the

and

look

ty&J,.-:.'(Millions)

principally upon the business out

much, the total of

Bank

thus .to

and

loans,

other deposits.

position

TABLE

Growth

position

would

make

loan by giving a check
account.
This transaction
so

!-y I

"v'-vi'.

■

Demand

Increase

May 31,

Dec. 31,

deposits

deposits
S. Govt, deposits

—1.

1945

1946

1940-46

$74,000

$78,500

$43,555

46,000

51,100

23,362

$34'—5

Time

outside

Aug. 31,

1940

27,738

753

17,300

17,400

16,647

7,325

25,900

26,400

$70,761

——

"The

Federal

National

$163,200

$173,400

$102,639

Reserve

Bulletin,"

•

July,

(Billions)

National Income Components—

-—

Supplements to salaries and wages
income of proprietors
Agricultural
;
Nonagricultural
—

Net

corporate

$114.5

119

48.6

111.4

129

profits—

113

12.5

184

7.6

7.5

*16

13.1

■V

11.8

Source:

♦Decrease.

Data

Income

purchasing

lack

power,

But the fact

despite

indicate a great

deposits.

expansion of the total

is that the purchas¬

ing power represented by the deposits and currency is not static.
There is a continual turnover of

enough of the deposits to repre- /
sent total transactions much in
excess
of the grand total.
The :
change in the

deposit
been as

annual rate of bank
since 1940 has •

turnover
follows:

Rate

Annual

Deposits,

Government
'

y
.

17.1
18.6

Year,
1945

May, '?
1946 ;

24.2
16.1

24.5
15.8
M:

% yyy^.yy

The real pressure on

prices de¬

pends on the quantity of available
purchasing power and the rate at
which it is used. The figures in

that, on the aver¬
dollar of bank deposits

Table III mean
age, every

in the New York City banks was •
used
in some
sort of business
transaction which moved
one

it from

account to another 17.1

times

during the year 1940, and so on.
The rise in the New York turn¬
over
rate since 1940 reflects the

growing influence of the pro¬
longed stock market rise and"the1'
great increase in the scope of the
trading.! For the country at large
there

has

the rate of

been

some

decline in

deposit turnover since

1940.
The

total

spending,

use

purchasing power, which is
indicated,
includes
all
of

here
the

spending for business purposes
and
operations as well as the
spending by consumers. The sig¬
nificant point in this connection is
of deposits by

busi¬

resulted in an advance

of to¬

that the use
ness

tal

and wage payments
$48.6 billion in the year 1940

salary

from

$111.4 billion in the year 1945.
months of 1946

For the first four

total

were

4.5

150

$77.6

$161.0

107

i f '
City
cities—

York

Year,
1940

leading

100

—Annual Rate—

Banks in—
New

9.0

of Turnover of Demand
Except Interbank and

v"-V•

4.5

compiled by th? Department of Commercee.

evidence

the

1.8

46 Front Street, New York 4V N. Y.
Total national

and

5.8

•"

—

contended that

file of wage earners
other small income recipients

the rank and

4.0

—

Corporate savings

3.1
25.6

4.4

—

Dividends

3.7
-

rents—————.—.

Increase

12.0

—

Net

net

1945

$52.3

compensation of employeees
Salaries and wages---

and

;

1940

Total

Interest

1946.

Income, Calendar Years 1940 and 1945
"

Hence, it would be

19,075

banks

Compiled from

argument is that the bulk of the
deposits is\owned by busi¬
ness concerns and. by a relatively
few rich and wellMo-do persons.
bank

dollar of bank deposit credit
created in this way, its

dispel one

argument that is likely to be ad¬
vanced by those who seek to make '
a case for still higher wages.
The

banks,

has been

transfers from

Deposits and Spending

similar reduc¬

tion of the deposit total.

equal

new

into

account

checks

principal source of the rise
deposits from December,
1940 to May, 1946, has been the
borrowing which was done
through the banks. It is striking
bank

government

private accounts.''

The

all forms of bank

expenses, there
transfer of the money

growth of the investment in¬
namely interest, net rents,
profits, was at dis¬

the

comes,

current

would be

from

bank deposits or of currency held
outside banks.

for

used

presented for redemption in large
quantity, the process would in¬
volve an equivalent increase of

For 33 Years '

Taking

1940 and 1945, the

calendar years

These data serve to

deposits and also the
total of its assets. Repayment of
the government debt held by the
banks would operate in the same
way. In Table I the government's
total deposits were $17,400 mil¬
lion. If these deposits were used,
as has been done in recent months,
to redeem debt paper held by the
banks, the grand total of deposits
would be thereby diminished. On
the other hand, if some part of the
government deposits were to be

Over-the-Counter Quotation Services

San Francisco

May, 1946.

national income for the

the total

Bank

bank's

the

TABLE

power

(Continued from page 1262)

Source:

■

huge

tinctly slower rates.

and Taxation

Total

Chicago

figures for the calendar years 1940
and 1945 are given in Table II.
Here we see the effects of the

advance

Established 1913

credit.

expansion of purchasing
power may be expressed, also, in
terms of the national income. The
The

Currency

NATIONAL QUOTATION BUREAU, Inc.

inflation

/.,»•«

Co., Inc. i

repayment. The things .that hap¬
pen to prices and incomes because
of the increase are only the re- ^
suits or effects of the underlying

1940

p:;r

Herrick,Waddell

dition, unless and until it can be
reduced by the process of debt

from

reduces, by

Prospectus

As just

explained, this is a permanent ad-"

WORLD.

deposit credits.

and bank

the net income of

repay the

; ;

5V2 years, $100 billion was added'
the nation's supply of money

an opportunity for a gain in the number of his dollars during a
period when dollars themselves are losing value ALL OVER THE

by repayment of debt obligations
held by the banks. An individual
who owes money to a bank can

5% Cum. Conv. Pfd. Stock

inflation
In about

end of .1940 to

talk

but the total of deposits is
thereby changed. The only
way by which a given total of
bank deposits
can^be reduced is

Oberman & Company,

by Table I.

assertion.

All

it.

convert

can

man

money or

not

•

is indicated

decrees, price control or any other artificial methods is meaningless
drivel—history gives us indisputible proof of the accuracy of this

the government bonds into which we may
controlling inflation through government

our

other

of Inflation

Basic Aspect

The basic aspect of the

increase
of
purchasing
that was indicated by the
expansion of bank deposits and
currency in Table I, the total of
which increased 145% from the

soundness of

present

heard it six

customer—YOUR FIRST

our

took

to pass.

day fiscal policies of the federal government
are not completely
reversed. They hear themselves shouted down
every time sentiments and statements such as these are voiced among

told

OBLIGATION IS TO YOURSELF AND YOUR FAMILY!
what

see

if the

reserve

and the whole

the majority of the citizenry of this country completely
oblivious to the possibilities of financial chaos which someday will
result

is gained by playing the hypocrite.

ever to get back on a sound fiscal basis again it will

be' because the investors of this country WILL FORCE IT.

Securities Salesman's Corner
There is

(this nation is

Thursday, September 5, 1946

wage and salary payments
$33 billion, a decline of ap¬

proximately $1 billion per month
corresponding period of
1945,
but
nevertheless a rate
which would, if sustained, produce
from the

[Volume 164
a

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

total of wage and salary incomes
some $100 billion for the entire

income

be prevented.

recipients, including those
receive dividends, for the
amount they have received has
risen by only 12% since 1940; and
those whose income consists of

1946. If there should be no
further prolonged interruption to
year

employment, the total income

also

who

for

1946 may not fall
very far short
of that for 1945,
Incidentally, we
have here a measure of the total

interest and rents, for their
net receipts have gone up by

cost, to wage and salary earners,

compared
with a rise of 129 % in total .sal¬
aries and wages, and of 184% in

of the

various kinds

57% in the Same time. These rates

of interfer¬

employment and pro¬
duction that were experienced in

the

the first four months of 1946.
Thus, the fact that an individual
does not now own any part of the

income

net

are

agricultural

OOkO^'OOO::

proprietors.

The Course of Prices.

huge total of bank deposits does
not

increase

with

ence

total
only

final aspect of this statis¬

consider the
share
in the purchasing power course of prices In terms of in¬
which these deposits represent. If dex numbers, .the record since the
he is employed he is getting in¬ end of 1940 has been given in
all

mean

that

has

tical summary, let us

Table IV.

use,

somewhere in the economic
system of the purchasing power

series of index numbers compiled

which

by the Bureau of Labor Statistics
will serve to indicate the trends.

sent.

the

•

bank

deposits

repre¬

samples from the entire

They relate to the more impor¬
tant groups of commodities, from
the consumer standpoint, and they
include also those series which
have shown the largest increases,
It is clear that there would have

•'V;;,.■:

Human nature being what it is,
there are few persons who are
ready to admit that the income
which they receive is enough, and
more than enough, for their
needs,
their plans, or their ambitions.

greater price increases than

been

Rising prices increase this sense
of insufficiency. Judging from the

those actually recorded

record, the groups who would
have the best case for higher in¬

controls

Numbers

Price

that

rationing

maintained

were

during the war.

table
Index

had it not

been for the price and

this ground are the fixed

comes on

1940

May,

1946

1946
Increase
-

Bldg.

Farm

32.4

111.5

69.8

Mat.
94.8

73.8

70.4

137.5.

PART B

Textiles

Foods

67.7

78.6

; 111.0

May,

127.8

108.8-

41.1

33.0

35.0

Cost of Living
B.L.S. 1935-1939

100
House

Furnish-

Date—

Year, 1940
May, 1946
Increase

All Items

us see, now,

methods, a vast number of dol¬
lars.
The natural result of that
action was to make each dollar
worth

in relation

less;

to goods

services of every kind. The
extent of this decline in the value

and

fa***

Food

will

which

action

restore

some

part of the exchange value of the
dollar that has been lost during

Another way
saying this is that we wish to
prices somewhat lower, or
certainly no higher, than they

the past few years.
of

see

how

are.

There

tion

...

lines of ac¬

various

are

but

that might be followed,

only

that

ohe

sound

economically

One way
diminish, by some

sensible.

and

government

write-down

either at some
such as 10%

decree

could

a
deposits,
proportionate rate
20%, or by reduc¬
bank

—

given date, and subsequent

ings

101.7

100.5

155.4

withdrawals could be subjected

152.4

31.3

-T —--

Source: From "Federal Reserve Bulletin," July,

46.0

53.7

51.9

strict
sort

1946, pp. 804, 805.

The significant inference to be
from
a
comparison of

Table

and

Table

income

has

national

tively,

much

protecting

;

that

risen, rela¬
than prices.

This is notably true of those com¬

ponents of the national income
which consist of wages/ salaries,
and farm incomes.

;■

Thef temporary

suspension of
price control produced confusion
and

considerable

emotional reaction.

amount

The

our

war

bonds worth more

has

been

authorized.

insurance

penditures for the fiscal year 1947

policies
and savings deposits worth more
If we can produce enough goods
we can raise the real standard o:
to. make

our

usually become necessary in
stages of exces¬

the real. value of
provided by law for

the

ex¬

Will exceed the revenues to be ex¬

laws,

tax

existing

under

pected

there should be tax increases.

In the second place, an increase
living by this change in the pur¬
chasing power of our dollars. Ii of taxation would do little to curt*
does not require that there should
the inflationary potential already
never be any more wage or salary
existing, except to the extent that;
increases.
The correct and sen¬ the funds were applied to the re¬
sible policy with respect to wages duction of bank holdings of pub¬
is to relate them to efficiency and
lic debt, and provided that the
productivity, but a policy of shar¬ banks did not offset this decline of
ing the general gains from; great¬ deposits by expanding private
er
productivity through lower loans. This was clearly perceived
unit prices would
promote the in one suggestion that a restric¬
upon the creation:
credit, as an accom¬
paniment to the increase of tax¬
ation.
Though effective, this

tion be placed

The fruits of technological
advance must be shared by all.

private

would
End

slow

process,

for

Deficit Financing

budgetary surplus of $5 billion in«
a
year would, be^ a
tremendous
feat, while a decline of as much,
flation of bank credit by deficit as $5 billion in deposits in a year
financing; It is also plain that the would still leave an enormous to¬
validation of the dollars we now tal outstanding. Moreover, such an
have, granting that we succeed in increase of taxation would accom¬
stopping their further creation, plish nothing toward an increase
cannot be achieved by prolonged of production because its burden;
interruptions to production, or by would be likely to fall, in large •
relying on government to bail us part, upon those whose active ef¬
out. It cannot be done with mir¬ fort in securing larger produc¬
rors.
It will take work;, thrift, in¬ tion is most important.
vestment and enterprise.
The advocates of functional, fi¬
It will
It goes without saying that there
must be an end to the further in¬

take

teamwork

fair

and

play all

around.

■

have

nance

For the accomplishment Of our
goal by this means, price control

lines

taxation

really unnecessary and it may
be a positive hindrance. The di¬
lemma ol such control

is this—if

of action

Briefly,

answer.

first

the

involve

It would,

the

the use of

some

remove

surplus purchasing power.
der

wrong

dealt with above.

would be

effective,

the

money

the price ceiling is set high enough

thus collected should not be
out

cover

reasonable

paid}

that it would be, in
substance, a cancellation or de¬
struction of the excess purchasing
power thus taken in.
If it were
applied to the reduction of debt
held by the banks, it would not be;
again,

peculiarly, a tenet of functional

possibly, then there is nq produc¬ .finance,

has only the melancholy satisfac¬

the;

In or¬

for

to tion, or at least no sale in the points to the
control. Drastic steps of this legitimate market. The consumer

the final, extreme

derived

price control, but ok
expenditures which,

total

production costs plus a
profit then no ceiling
is needed, for the operation of free
of paper money could be called market forces would eventually
in and exchanged for new money establish that price. If the ceiling
at 70 or 80 cents on the dollar. Or is set below the point at which
bank deposits could be frozen as costs; and reasonable profit
are

ing large accounts relatively more
than small ones/The large amount

96.6

Clothing

the

ceive.

142.6

the fate

validation of the dollars which all
riiembers of the community, re¬

is, in its power
in exchange, is
of price
changes given in Table IV. What
we
need, as a solution of our
problem, is a policy and course of

100.2

•>»■» •«

of the dollar/ that
to command goods

131.5

lO:0,

if we can bring
together the various elements of
our problem into a simple, non¬
technical
explanation.
As
the
data presented in Tables I and II
indicate, we have created, largely
as a result of the war financing

the

Products

modities

1940

Let

proposals looking to this end have
been made, but none has gained
serious attention.
For example,

100

All Com-

Date—
Year

means

incomes worth more, tc

PART A

B.L.S. 1928

;0-O:O'. 0:1 Factors

force, the total number of
dollars now in existence. Several

Wholesale Prices

A Summation of Inflationary

tour de

Commodity Indexes

dollars

our

make

would

Changes,

To validate

make

indicated by the summary

come, and both his employment
and his income depend upon the

These

proposing that price increases

128$

orthodox
end.

finance

same

Taxation for Fiscal Purposes

tion

seeing

purchasing power, but they prices posted
would not be tolerated here under
sive

list

ceiling
empty shelves.

Only

t The rub

and the pinch,
The new price control law pro¬ would come, in determining which,
veterans and their dependents;
present conditions mainly because
persons had the excess purchasingvides no way out of this dilemma
of keeping faith with purchas¬
they are not at all necessary. Our
With respect to agricultural com¬ power and were using it to the
ers of United States War Bonds,
situation is by no means so far
modities, for example, it states detriment of their fellow citizens,
and of making possible a suc¬ out of hand as to warrant them.
that there shall be no price con¬ and in devising tax methods for
cessful transition to a peacetime
Another line of action would be
The
trol over agricultural commodities taking it away from them.
economy of maximum employ¬
to give all of the people, or se¬
unless they are in short supply. average person would react vio¬
ment, production, and purchas¬
lected groups, more dollars. This, In
other words, where the farmers lently to the suggestion that be
ing power under a system of
of course, would defeat the main
find
the
price and the return had too much purchasing power.
free enterprise;
And yet, the proposed taxation,
purpose of raising the exchange
adequatq, there shall be no con¬
(2) that unnecessary or un¬
value of the dollar generally in
trol because production will be would need to cut fairly deeply
duly prolonged controls over
relation to goods. If more money
sufficient; but where they cannot into the average income if the
prices and rents and use of sub¬
were handed out all around, no
and
withdrawal
of
or
will not produce enough of a diversion
sidies
would
be
inconsistent
one would be any better off than
with the return to such a peace¬
commodity because of costs or money were to be on a scale ade¬
he is today and it would be a
other conditions, the price con¬ quate to produce the effect de¬
time economy and would tend
question of the printing presses trol authorities are to
to repress and prevent the at¬
step in and sired. This scheme, like all others
keeping up with the price in¬ set a
tainment of this and the other
ceiling price. Such action purporting to prevent unwise use
crease.
If certain groups were to
will assure that the production is of income or accumulated funds,
goals herein declared; and
be given more dollars, for exam¬
breaks down because of the im¬
not increased.
(3) that adequate prices are
ple, through the procedure of
possibility of identifying
those
necessary stimulants to the pro¬
granting further wage increases,
Problem of Increasing Taxes
persons who are most likely to en¬
duction thus desired and the ex¬
the result would be to increase
When the legislative jam" over gage in the practices deemed un¬
peditious attainment of said costs of
production and thus to
the price control legislation devel¬ desirable, and also because of the
goals.
s
compel, eventually, further price
oped, there was talk of increasing equally impossible task of devis¬
This is a constructive declara¬ increases.
But
benefits

over

comes;

following

facts,; however, may be noted:
first, supplies of meat, butter, and
other goods began to come into
the market, whereas they had
been virtually invisible
before;
second, prices were higher than
the former ceiling prices,
but
probably not as high as black
market prices.
Moreover, there

goods at these open market
prices. Third, some part of the
price' increase represented the
subsidy which had formerly been
paid as a means of keeping down tion of purposes. Like all such"
the
final
price
tov consumers. legislative preambles, it suffers
Fourth, and perhaps most impor¬ from the vagueness usually to be
tant, there was a beginning of found in a broad, general state¬
free market operation in which ment/and it fails to tell the whole
the natural forces of demand and story. Moreover, it lacks internal
supply could establish equilibrium consistency, but that lack derives
from the conflict of purposes in¬
prices.'
v
The reenactment of the price volved in price control. For ex¬
were

■

control ; legislation

rested

upon

arguments and policies which need
not be entered into here.
Some
statements

the

declaration

objectives in the new law are of
Interest. They are the following:
The Congress hereby affirms:
i

(1) that because of abnormal-

realize that the abnormal

ex¬

rapid attainment of production thing that

equal to the public demand is

any sort of

the necessary and urgent
Objectives for the prevention of

istrative action, for it has already

one of

inflation
■

and

for

the

achieve-

additional

ther from the

primary goal, which
is to recover some part of the ex¬
change value which the dollar has
lost in relation to goods, or at
least to preserve such exchange
value

has.

taxation in the event that renewal

ing tax methods that would dis¬
completely
tinguish between beneficial anil
Fortunately,
this suggestion was not taken se¬ harmful amounts of funds. How¬
riously.
That it could have been ever the matter is approached,
made at all, however, warrants there is no
escape from the con¬
of

should

enactment.

some

And

control

the

fail

comment.

a na¬
clusion that the taxing power can
increase ? if The particular kinds * of \: new be
safely used only for the pur¬
taxes or tax increases that would
of
money
incomes
all
around
been
ample, we may ; agree entirely would be merely the case of have
proposed were hot pose of financing the needs of
with point (3) as to the necessity handing out more money to every specified, beyond one fleeting, sug¬ government, and that all attempts
of
adequate prices as essential one.
gestion that the excess profits tax to use it for non-fiscal ends will
stimulants to production, and with
be restored.
It becomes backfire or miss
A third line of action, and the might
fire, or hit the
point (2), that unduly prolonged
only sound one from an economic necessary, therefore, to speak in
This is true of
controls will defeat the attainment
general terms of the efficacy of wrong targets.
standpoint, is to effect a revalua¬
of the desired level of production.
as
an
instrument
for taxation as an instrument for the
tion of the dollar in relation to taxation
But in point (1), there is a failure
goods by producing more goods at dealing with such a situation as control of inflation.

excess purchasing power in
relation to the presently available supply of
commodities,

;

any

price increase would carry us far¬

cess

real

inflation.

purchasing

happened.

This

can

power

is the

is not

some¬

prevented

legislative
As

the

law

admin¬

uses

the

now

tionwide campaign for an

lower unit costs.

The reason

why

was

before

us.

The

alternatives

before us are

dollar will buy so little today is
that there are so many dollars
and so few goods. Since we can¬

it is always
plain and the wise choice between
proper to maintain taxation at a
sufficient level to cover the ex¬ them is clear. We can lick our in¬

not

penditures

equalize the situation

would like by destroying part of
the dollars, then the wise and
proper course would be

to create

In the

most

first place,

and,

unusual

except

circumstances,

the

provide for a systematic program
of

debt

retirement.

flation

to validate

Failure

all

be licked by it. We can

our

dollars

crumble into dust.

let them?

We have put a

lot of our future on the cuff but
As this happens collect enough revenue to balance
ment of a reasonable stability term, "inflation" means price in¬ ipore goods.
in the general level of prices creases, which are only the end prices will fall, and a fall of prices the budget involves further bor¬ by wise- and efficient, action we
| and rents, cost of living, and result of the genuine inflation. means that the dollar will buy rowing/and to the extent that the can write it off again. Unless the
more.
In other words, its value banks participate, it means the
costs of production (including
American genius has been sold
The inconsistency of objectives
■! "■ labor costs), for,;the
in relation to goods will become creation of more inflationary pres¬
purposes
down the river, the right choice is
lies in the, admission, that ade¬ greater.
sure.
The case for tax increases

;

set forth in section 1 of this Act

and for the further purposes of

quate prices

are

necessary

while

This

challenging thought.

tViie

timn

Hnpc

rmt

rpct

assured

1286

,THE COMMERCIAL & FINANCIAL CHRONICLE

Place of Public Works in the National Economy
public works and
services has to be developed.
of

program

At any
tent

particular time the con¬
public works and serv¬
program depends on the eco¬
of

the

with

(Continued from page 1269)
a

of public for example, went hand in hanc
and public with the construction of a hardbodies at the various government surfaced highway system, and the
levels. ;v ;V'v, 1 ■
'
provision of public airports may
;V
Notwithstanding the gradual ex¬ be expected to parallel the growth
and

cooperation

agencies

private

primarily the ones felt

pansion of public works and serv¬
ices, modern civilization has been
characterized by a lag in the sat¬
isfaction
of
community
needs.2
While the general need for in¬
creased public activity is recog¬
nized by large parts of the com¬

by the people as individuals and
provided for by private enterprise.
With an increase of wealth, the

munity, different groups disagree
on the relative urgency of partic¬
ular projects. The projects finally

ice

nomic

early stage of eco¬

development when capital

nomic
is

of a

cultural progress

and

nation.

only

scarce,

These

are

urgent

most

the

needs

economic

satisfied.

can

desire to satisfy community needs undertaken usually reflect com¬
increases, and the allocation of a promise on many issues, and thus
growing portion of the country's often fall short of the community
need.
resources to community purposes1
Public inertia, lack of informa¬
becomes possible.
y
•
The steady rise in the general tion, disagreement on financial is¬
standard of living, for example, sues, and legal or ^administrative
obstacles also cause delay. These
has been accompanied by a grow¬
conditions account in part for the
ing awareness of social responsi¬
fact that public works and serv¬
bility for the assurance of mini¬
ices undertaken in the past are
mum
living standards. The need
not necessarily indicative of the
for expanded community facilities
extent of past needs or of what
and services, such as health and
people at large would consider a
education,
is
widely
accepted.
desirable program. Extensive in¬
Sanitary housing and other needs
needs
which formerly had been thought vestigation of community
to

concern

the individual only are

becoming vested with public, in¬
terest.

;

■

A-rising national income,, how¬
is no assurance that needed
public projects will be under¬
ever,

income

the

and

satisfaction

public needs differs from the

of
re¬

lationship between individual in¬
and the satisfaction

comes

of in¬

dividual needs. Despite prosperous
business
conditions
during
the

twenties, the nation emerged with
serious

deficiences

requirements

such

basic

housing, schools,
and medical facilities. In apprais¬
ing economic well-being,* it is not
as

Activity

Private

and

!:• An objection ^frequently made
public works and services is
that they represent a less-efficient
to

use

achieved-

the

would

alternative

One

uses.

than

resources

private
for this may be

reason

difficulty

obtaining

full

on the desirable scope
public program. The dispar¬
of interests represented and
the diversity of needs to be served

agreement
of

wihicjh

our

those who
in

its

affords

economy

are

wealth.

least able to share

Thus,

the

general

level of

health, education, and liv¬
ing conditions should weigh heav¬
ily in the final appraisal.
-

Other factors leading to an in-,
crease in public
activity relate to

the

growing

complexity of, the
Heavy concentration of
population in urban centers has
economy.

created

host of

needs

new

for

public works and services. Tech¬

nological

changes such
importance of

growing
power

have created

bilities for

responsi¬

new

resource

the

electric

development.

Intensive exploitation of

best

our

agricultural and forest lands has
created

ects.

need for

rigation

The

large-scale ir¬

flood-control

and

proj¬

increase

in ability to
works, therefore,
has been accompanied by a closely
related, though not always equiv-

for

pay

public

alent,

growth

them.

•^Vvlv

the

need

for

The term public works has been

traditionally
construction

applied

public

projects only.

How¬

public construction projects
are
only a part of
broader public functions. To carry
ever,

frequently

education

and

functions, schools
needed, but so

are

public health
and hospitals
are

the

serv¬

ices of teachers and doctors. Pub¬
lic services must thus be con¬
sidered
A

discussion

public
be

cannot

works,
limited

to public construction
projects of
more traditional
type,, such as

the

highways
but

and postoffice

must

also

include

buildings,
broad

im¬

provement projects, such as urban

redevelopment
ment

the

develop¬

river

valleys. Actually,
these are not new types of
public
activity, but the modern counter¬
part
canal

completely
Private ac¬
tion often leads to similar results,
compromise

Federal

and

participation in
highway construction

dating back to the early part of
the last century. Individual
proj¬
ects, moreover, must be considered
as parts of a
comprehensive pro¬
gram and planned on a broad basis

that

satisfactory to

no one.

the failure of many a business

venture

attests; but since the de¬

sires of the

community

consulted

seldom
disap¬

are

the

advance

less

is less vocal and

pointment
evident.

also

difficulty in
comparing the relative returns
from public and private enterprise.
Business calculations, for instance,
with

concerned

are

demand

They. cannot
deal with needs which may be
supported by inadequate purchas¬
ing power but which are never¬
theless economically and socially
important. Moreover, they do not
take account of many costs which
are borne by the
community as a
whole, but do not show up as
terms

money

business

only.

expenses.

Balance

sheet

profitability, therefore, does not
always indicate whether the bene¬
fits of

moreover,
business enter¬
new op¬

the landlord while most
costly to
society. The contention that pub¬
lic
works
and \ service
outlays
should be limited because -they

represent

efficient

is thus not

resources

eral

less

use

and private uses of resources must

considered

merits.

No
can

their

specific

clear-cut

line

•

division

be drawn between

for

are

dustries

will

example, make available for
private
exploitation
land
and
power
resources
that
formerly
were undeveloped or inaccessible;
roads,
sewers,
waters works,

orbit

are

bring

necessary

fringe

within

areas

the

expanding private busi¬
ness activity; and urban redevel¬
opment revitalizes dead areas by
b

t o

works

s o

block

tion

and

create

the

tract

induce

open up

new

popula¬
markets,

combinations

new

labor and natural

enterprising

to at¬

resources

manufac¬

turer, retailer, and builder. More
than is generally realized, private
business follows the public dollar.

Compared with the
of

large

area

mutual

support, the points of
conflict
between
p p b 1 i c
and
private activity are few; They are
based

largely

misapprehen¬

upon

sions. An expanded public works
and service program, for instance,
need not

mean

business."

in
and

"more government

Most

public

works
are

actually planned and carried

out

private

tractors.

engineers

and

lify y -$$0

often

there

kind

which

for

services

been

growth

which

the

both

and

public
functions,
supplement each other in

meeting

new needs and

providing
more
adequately
for :' existing
needs. Indeed, new public works
are often a
necessary condition for
private expansion. The develop¬
ment of the automobile
2 Needless

works
all

grew

public

connected

say,

larger

the backlog of public
during the war when

construction
with

the

industry,

war

poned for the duration.

not

immediately

effort

was

post¬

of full employment'"«
competitive demands,',;;
resources.;
'
v
v, >. v ?

upon our

;"> In either

it is

case

well

to re-';?,

consumer.

must be

and

works

contribute

national

service

Once

ernment

policy

cannot be

overlooked.,

Clearly, expenditures
reduced when

connection

with

private investment

increases.

kind

not

private in¬

policy

accentuates

cyclical

minimum

public

works

require¬
service

and

should be maintained at

stable level

ovir

the cycle. The

time

same

continuity

has

this

however,

Recently,
ment

been

argu¬

into

expanded

rigid principle of counter-cyclical
timing. According to this principle,
public works and service expen¬
ditures should be increased when

private

investment

ment

off

falls

private invest¬
rises. The difficulty is that

the rigid application
of such a
principle might involve a conflict

the

oetween

need

and

the

em¬

of public pro¬
grams. If the level of income and
employment in the post-transition
period should remain high, for in¬
stance, public works and services
would not be a necessary part of
ployment

aspects

policy.

Yet a sub¬
stantial volume of such expendi¬

employment
tures

will

still

required

continuing
needs
though employment is at

even

high

execution of the program, first of

level.

all, result in

poned until some future depres¬
sion occurred, the development of
essential
community
functions
would be delayed.

demand.

direct addition to

highways are con¬
structed, jobs for highway workers
are
created and the products of
the construction industry have a
market.

new

The

additional

paid out will raise the total
income received by the commun¬

and

this
,

increased

in
,

turn

will

program

afford extensive

ity.
Accordingly,
the
level
of
private expenditures will tend to
in

the

were

post¬

of course, that during
period of depression the com¬
munity is in a better position to

come

rise

It is true,

in¬

works

and

notice and

at - the

plans'

present;

largely nonexistent or in;
preliminary stage. A large num-;«
are

extent, however, that pub¬

projects

during

resources

assured

demand, output, and without such

with

or
,

programs.

At such

the

between

ects

this

period

rate

which

proj-;

be initiated and the rate

can

•

at which they are

needed. So long v
as this margin exists and projects *
are
planned sufficiently in ad¬

their execution may be ac- »
celerated when conditions require, *

projects of in¬

without reaching into

dubious

value

social

make-

work character,.

Once the most urgent needs for

public works and services are met, ■ 1
possibility of postponing cer- *
tain parts of the program during
J;
business prosperity is likely- to;
become greater.
the

Paying for Public Works and

Services

one

any

•

the financing >

year

and services will;
have to be planned in accordance
with general fiscal policy consid- %
erations which apply, equally .to ;
the other items of the budget.
In Zri
of public works

the financing of pubservices does not *

this respect

and

works

lie

other

from

differ

budget expendepends altogether

and'

ditures

upon
the requirements
economic situation.4
the

extent

that

ice

com-

expenditures itself may deterwhether preference should

mine
be

»
•

the *

patible with general budget considerations, however, the character of the public works and serv-

•

£
.

given to taxation or borrowing. *
recurrent expenditures on ,

Where

public services are involved, taxation would appear the more ap-

propriate way of financing. In the
case
of larger capital outlays on
and public improve-

construcion

Federal Works
the Interde¬
Construction
to defer those types of. Fed¬
construction which would compete foi
Feb;

13 On

12,.. 1946

Administrator

eral

materials

and

men

the

that

the
the

reclamation

thermore,
tion

4 For
see

with

the

demands

program

projects* river and harbor im*

and

flood-control

project^

forward.
The Committee, fur¬
pointed out that the construc¬

certain

streets,

essential

that

Committee

provements,
should

the

for veterans^ Howralso
recommended
construction of highway projects,

housing

ever,

reported

Committee

partmental
had
agreed

serv¬

ice
programs
than in times of
prosperity when full employment

result

be:

cannot

program

short

preparations

time

and

when

decreased

the

and

stability

Expenditures for goods and, meet

services

started

vance,

public

works and services should

in the development of an effective

several

(extensive

compete with urgent de-I
mands, such as for housing, their

public works and service program
will be possible.

pro¬

a war V t'

to be small at this time since an'

lic

nationl income in times of depres¬

immediate'':

would

budgets, their role in a
of
cyclical
stabilization

sion. At the

run

the

peacetime economy. The com- " V
petition of public works and serv-]
ices for limited resources is likely
a

To the

in an impor¬
segment of total economic
activity will place a floor under

employment

income

employment.

tant

Employment

and

operate

ices composing a substantial part
of Federal and non-Federal gov¬

resulting

public enterprise or owner¬
ship is thus a separate issue, with¬
out direct relation to an expanded
public works and service program.

Public

during

period of reconversion from
to

lem of

Public Works and

continue

Relevant

Neither of the two aspects of
postponement is obviously justi- ■
public works and services —• sat¬ fied.3
;
isfaction of community needs and
If after a few years unemploycreation of employment — pro¬
ment should again assume con¬
vides by itself a sufficient guide to
siderable proportions and be of a ",
planning; Extensive public works
less transitory character, the ex¬
and service programs are needed
ecution of public works and serv¬
aside from their effect on employ¬
ice
programs could
be speeded
ment,
But program timing must
allow for fluctuations in the gen¬ up. The current backlog of needed
eral level of income and employ¬ public works is so enormous that
there is a considerable margin
ment. With public works and serv¬

programs

according to the
principles of
private profitability and their cost
accounting must provide a fair

ways.

has

the

in¬

Public Works and Cyclical
Fluctuations

ment,

public works and services
may, to be sure, be designed to
compete with private enterprise.
This may be the case where pub¬
licly owned institutions are es¬

such instances, they

new

to the economy.

sound.

Some

tive

permanent

fluctuations and is altogether un¬

private

exclusive

historically,

periods

higher level of output can be ex¬ ber of public
projects, further-'
pected.
There is nothing transi¬ tnore, make
only an insignificant;
tory about these factors; they are demand
upon
the resources*'
designed to give a permanent lift needed for
private' construcioiur

this

suppliers.
Even in those areas where public
programs furnish goods similar to
those traded in private markets—
as
in the field of housing—the
public program will aim at sectors
of the market, such as low-cost
dwellings, which are unprofitable
to private enterprise.
are

con¬

developed, these in¬

pro\lid6

vestment

Similarly, the goods' and serv¬
ices provided by public programs
are

will be

falls and raised when

con¬

the

the working efficiency of the pop¬
ulation is raised, a permanently

development projects, though

financed by the Government,

The

private

bnd

structures

nature. Once markets for

new

these

shifts,

grams

fact,

mentioned

maintained, the latter type of

dustries

spheres of public and private ac¬
tivity. Both are closely related
and dependent upon each other.

important

supply

preceding
paragraph ~ will
con¬
tinue only while the program is
tribution

valid gen¬ standard of competition. The prob¬

principle. Alternative public

ing

because

are

portunities for private investment.
Regional development programs,

private undertaking out¬
as
weigh its cost to the community. tablished
competitive yard¬
The maintenance of urban slums, sticks
to
combat
monopolistic
for instance, may be profitable to practices and assure more effec¬
a

part of those who

effects

ment

initiative,

stimulates

prise by creating entirely

There

jointly with public works.

furthermore;

often

ity

which could not be afforded dur¬

expenditures

the funds. The way in which the

enterprise on
potentially valuable land. Public

the position of the most fortunate jin any community often lead to a
members of the community which
is decisive, but the kind of life

V Public

which

Enterprise

the

;

removing
Public

the level

programs

velopment of river valleys.

urban

■

tion

times, therefore, programs
can
well be expanded to include use-5
ful
public
works
and
services:

ment levels will prove

taken. In this respect the relation¬

ship between the level of national

the aircraft industry.

schools

discussion.

employment. An over-all increase
in income,
however, will .- come
about
only if the projects are
financed in a way which does not
involve
a
corresponding reduc¬

financed is, there¬ member that the level of
public* An expanded public works and fore, of vital importance for their works
and
service programs
is'i"
service program to meet existing employment effects.
; ; -;
only one of the instruments of fis-'>
There is a further and perhaps cal policy. If a
needs does not mean infringement i
high level of pub- ',
upon
private economic activity more important way in which lie works is necessary
during a't
On the contrary, it means that public works and services may
prosperity period, possible infla-; I
private enterprise is certain to affect the. level of employment tionary effects may be
mitigated >
benefit. It will benefit, for in¬ and output. A broad program of by
a
proper
financing policy.11
stance, from the increase in labor, public works and services will, in Similarly, the problem of a de-r?
productivity resulting from ade¬ the course of years, develop the pression cannot be solved by pub-1
quate public health and hospital nation's natural and human re¬ lie works alone; full
employment'
pare, from the preservation of re¬ sources, add to its productive, ca¬ must also be approached
through'
sources
pacity, and create new opportuni¬ other channels such as tax reduc¬
through
flood - control
ties
for
business
enterprise. tions.
measures, and from the supply of
' :*
'.a./-' '
•
;
>.T
cheaper power through the de¬ Whereas the income and employ¬
Some special considerations are • ■'
of

and

problems at. various govern¬
helpful in
providing the
necessary
back¬
ground for informed community

.Thursday, September 5, 1946

j£L

the

further

Richard

community facilities such
and water works, was
construction of housing.

sewers,

discussion

Musgrave,

this

point

"Fiscal Policy,
in "Pub-

Stability, and Full Employment,"

_iic
Finance
and
Full
Employment,*
Pamphlet No. 3 of (this series.

.
-

f
,

Volume 164

Number 4522

THE COMMERCIAL & FINANCIAL CHRONICLE
.

merit programs, on

the other hand,
preference may be given to bor¬
rowing, and the

annual

£hd amortization
be
distributed

the

services

interest

payments could
the period of

over

rendered

these

structures. Irrespective of general
economic

conditions

Would hold

this

method

particularly for small

government units whose financial
resources, are limited.
During a

budget period in which their
penditures

ex¬

reach
a
temporarily
high level, due for instance to the
-

construction
6

small

outside

schoolhouse

community,

reliance

will be necessary.

sources

,By repaying the debt in gradual
Instalments the cost to the local
Community
may
effectively
spread over time.

dealing with the

nomic

cost

broad

involved

has

eco¬

certain regions and
for subsidies. A

the need

vigorous program of slum clear¬
ance
will raise budget expendi¬
tures temporarily, but as a result
other cost items, such as fire and
police protection, health and hos¬
pital care, may be greatly re¬
duced in the longer run;/v./
3'The merits of public works and
service programs and the magni¬
tude of the projects which the
community can afford, therefore,
must be appraised not on the nar¬
basis

row

cash

direct

framework
and

economic

development. In

welfare

where

cases

immediate increase in national

income

and

tax

expected,

cannot

revenue

longer

range

pro¬

grams may

still be eminently de¬

sirable

the

nomic

interest

eco¬

social

and

States and localities to provide the
needed services.

development.
Only the government is in a posi¬

their

much broader scale

immediate usefulness.

other

needs.

where

the

resources

used

Where

high level of employ¬
independently

ment is maintained

of the public
programs, the ques¬
tion is one of

choosing between

the

satisfaction

needs.

priori
one

the prospects of
immediate monetary return. How¬

repeat, there

reason

for

another

should be

alternative

assuming
of

use

resources

less

that

desirable,

merely on the grounds that it is
aimed at the satisfaction of
public
or private wants. If the
people feel
that the construction of a
public

hospital is to be preferred to an
expansion of private plant, addi¬
tional public expenditures
"can
be

afforded"; if the plant is pre¬
ferred, they cannot. As will be
shown

the

subsequent discus¬

sion, the United States

not

only
pub¬

"afford" an expanded
lic works and service
program
but is urgently in need of it,
can

The

This presentation of the
issue,
however, tends to overstate the
cost impact of a public
program
the economy. It makes no al¬
lowance for the fact that the
pub¬
lic works and
on

improvement

grams themselves will
a

permanent

economy's

pro¬

contribute

increase in; the

output

and

hence

.•the level of national income. Out¬
lays for public services further¬
more will be reflected in
greater
health and efficiency of the
popu¬
lation, and increase its ability to
.produce and to earn larger in¬

Thus

comes.

the

competition

for
short period
reduced. An in¬

•resources even over a

.of

time

will

in the public debt will

crease

volve

additional

;results in

sion

charges

the

burden

corresponding
national

in¬

expan¬

income.

The

then be financed from
.the increased yield of the
can

existing

taxes. Debt
financing of public
/Works
and
service
programs
•therefore is sounder in the
long
•run. than debt financing of cur¬
rent

oulays which induce

per¬

manent rise in income.

many

cases

the

original

•

:money cost of a public works and
•service program results in corre¬

sponding savings to the commun¬
ity, without increasing total out¬
lays,. Highway construction ex¬

for

additional

taxes

lower income group
;— °

which is exempted from the additional tax payments, any benefits
he enjoys from the public outlays will increase his real income,

If he is in

higher income group
where he pays more in additional
taxes than he receives in direct
benefits

from

the

public

expen-

ditufes, his real income will deincrease in social cf^ n k? £*£2
stability a d
opportunity for private investment brought about by the public
-

the

projects.

gard

self-liquidating

projecte,

the

public budget it¬
self. Soil irrigation programs may
on

; greatly increase agriculture's pro5 This,

inefficient

course,

provides

program

planning.

excuse

able

the

therefore

Mr* Bryson:

cases,

tenon

for

services,
in

useful

clearly no
desirability

the

specific public works projects. The
contribution which publie works
services

render to ecodevelopment,
as has been pointed out,
cannot
be judged on these grounds. For
a
large number of highly useful
improvement projects, specific almay

welfare

nomic

xxcxo

and

UV.V,,

location of benefits is Quite impossible and fee finance therefore
not

feasible.

ing

Even

where

financ-

self-liquidating basis

technically

possible,

applica-

its

frenently be .u,adesirabl? because it would interfere
with the
*?ay

of the

purpose

project.

Outlays for child welfare, for mstance, might conceivably be financed on a fee basis, out this
would

undermine

which

services

tion

other
may

objective

people not-im a posipay on a cost basis. In

cases

some-Tee

financing

be called for, but it may be

undesirable

in this

cost

their

part to provide free

The

defray the

for fee

case

entire

finance,

the

whole, is stronger for State and
'
6.
,,

....

local governments than it is at the

and

borrowing

oftert

can

onlv
only

capacity,

finance

thrnimh
through

needed

the
the

issue
issu

of bonds to which the project re-

ceipts

are

pledged

Parking lots
are

examples
examples,

collateral,

swimming

The
ihe

pools

nossihiiifv
possibility

of
Of

paying for such projects without

having to increase tax loans furthermore

gives

incentive

without free and

unhindered

ac-

ing,
or
plans
bombs.
The U.

to any atomic energy activity
wherever; located.
The ADA

cess
—

must of course be free to

the

survey

possible

ownership

all

atomic

energy

activities

potentially
dangerous
security should be enthat. Authority. Would
you tell us,a"bit more why this
is necessary?
"to

Hancock:

The

must have al* the
needed

make

that is

that, while
energy is being used for
peaqefpi purposes, it cannot be

the

sure

warlike

power

ends.

Authority
control

thorium-and

have

uranium

and

their

prevent

moment

must

di-

ends__from the
from

move

their

ift

nature right through
stage of atomic energy pro-

duction

not

enough simply
Why ig this
materials,
0perati0ns, and plants required to
ptd; at0mic energy to peaceful
ugeg can easdy be turned toward
^be IIlaK1I1g UA atomic bombs.
uie makjng 0f CUUIIUU
uumua.
ail
In
to Qutlaw the

g0?

the

be built up.

can

The very

vided by

most that can be proconvention simply out-

•*,w*

T —

control

possession of atomic

bomb

Because

use,
atomic i
Plan provides •

Authority

power

of atomic energy I

sources

to
S.

hindered

atomic

this,

terial-suitable for

ma¬

bomb,
seizure of any plant belonging to
the Authority, or any willful in¬

same

terference

with

use

Brailsford & Co. Offers

the

Authority's
operations. Complying states must
ndvc
have ample warning ut,uu.u, any
ainyit
wax*x,„b
against
(
Brailsford & Co. and Associates
0ther
words, all sizable atomic possible preparation for use of on Aug. 30 made a public offering
energy activities are
potentially atomic weapons and they; must'of a new issue of $1,400,000 15dangerous
unless
carefully have the assurance of swift and year 41/2% sinking fund debenwatched and properly safeguard- certain
punishment. By no device/ tures, due Aug. 1, 1961, of Haskeled
jj. ajj comes down to a ques- can any nation be allowed to es- ite
Manufacturing Corp. of Grand
^on
^ ^be jntent of a nation and
cape the prescribed penalties. The Rapids, one of the country's leadjtg

citizens.

Atomic

energy

Haskelfte Debs, at 100

—^

uged

and

nature

extent

these

by a nati6n for either
good or evii# That is why we are
convinced that an international

ing
manufacturers
of
plywood
by' products.
The debentures were
the Atomic Energy Commission.
| prices at 100% and accrued inMr. Bryson:
Do the scientists terest from Aug. 1,194-3, and carry

agency must do the job and that
jts powers must be equal to its re-

believe that such

sponsibilities.

der> bld

This
gee

can

big

Mr.

bombs will

rj»be worjd js

benefits

tists

accept them

tive Grids
nir

Mr.

Bryson:

what

■

Mr.

Hancock,

circumstances

When

worked

this

that

the

facts

so^

purposes,

its

punishments

have been set up for violationsa11 as the result df a treaty ¥&t~
jn

keepjng

Mr. Bryson:
>n:

to point

you

WitH

constitutional
Anoxner
Another

mentioned,

our

significant

that

use

Mr*

es-

imporiani
important

Han-

apprwi*

fmanpind

TnG

GomDanV

the I

will

while making

for

the

benefit

that

the
an

this money for
and equipping

the

con¬

of a fir

plywood plant on the West Coast.
portion of the proceeds will be
used for the purchase of machin¬

arid equipment Owned by the

ery

War

possible
of

use

struction

now

Administration

Assets

leased by

balance

man¬

kind.

processes

Mr.

•

(-f ®m

Plan represents the minimum that

has been
and put into effective

.fied

par common

mately $1,285,000 to be received
tUn

the

weapon

tablished

chase 30 shares of $5

for each debenture held at
^
^
per s^are r111*1!

Quate systern of* control of atomic is required to prevent thd misuse
energy mcludmg the outlawing of of atomic
energy for destructive
tbe bomb as a
agreed upon
operation and when

warrants entitling holders to pur-

scien-

recognize that

ade-

The

Energy Commission both
a system of effec¬
tive control and a system of safe¬
guards are essential. The U. S.

our

prepared
to
cease
production of atomic bombs?

Hancock:

Yes.

" ''!

Atomic

un-

government

Mr.

have

•

mter/ds to "se $750,000 for' t
Moscow Declaration signed by the Purchas6°f the preferred Sto4c of
Soviet Union, the United King-', Humboidt plywood
(Co^P:, 150% of
dom, and the United States, as i
comm°n st<^k of whi ch is ^
well as the Resolution of the Gen-1 owned by
eral Assembly which set up the 1 essa.ry> .t0.
Aoa£,adi„ib£n?L£f^
to Humboldt. The latter company
lution.

the risk of diversion to destruc

d£r

who

concluded

waiting to enjoy the
to

Hancock:

problem require this kind

prevented,

atomic-energy, but it

afford

plan of inter-.

problem—and all others who have 11i
really studied this matter—have!

other, that the production of

atomic

national control is feasible?

or-

ofhgj. way

pen-

alties remain to be worked out

assure the
world, on the one hand,
that peaceful uses can be
exploited jor the benefit of
man, and on

the

•
,

adequate; lawing the use of atomic bombs is
including un¬ punishment after the bombs have
inspection, which may been dropped. This is not enough.
be irritating and onerous, We fully It does not even
comply with the
recognize' that the United States orders the United Nations have
will, over a period of some years, given us. We must erect a system
be the primary country subjected of control which makes it
possible
to Such inspection.
to prevent violations at an early ,
Mr. Bryson: Are any penalties stage
before the bombs can be
against a nation that violates the used.
,v••;•; v/V'/-'.VV.
We are not opposed to a treaty
agreement provided in the Amer¬
ican Plan?
outlawing the bomb. We merely
Mr* Hancock: - We havd pro¬ insist that the job be done com¬
The resolution of the
posed that certain acts should be pletely.
General Assembly which gave the
defined by treaty as international
Atomic
Energy Commission
its'
crimes.
These include not only
marching orders and indeed the
use of an atomic bomb, but also
such preparatory steps as unau¬ peoples of the entire world will be
satisfied with nothing less.
thorized
system

world

trusted to

through which this con*,

means

fidence

materials anywhere in the world,
In recommending an

cannot

manner.

rushes to nations for peaceful use which
they
are
entitled.
This
would, en¬ will be subject to strict license
problem can be solved only by
comprehend, with the
right of inspection. The building up the confidence of the
detect, misuse right of inspection is meaningless
world that no nation is produc-

tioned that managerial control or

every
en-

energy

You have

plaCe

C*o

all

spoken
0f the proposed international development authority.
You menof

of atomic energy.

thls nations whenever theyat,WlU
s°rt have been br0^n have
by

which

—

ADA

^Mby.the^SeIS
While fee finance

services
services

cussions

atomic

vergion to warlik

and

in¬

activities.

that is, projects financed not out
of general revenue but from fees

some

through

previous promises or

It means exactly
felt it was to their advantage to
Inspection is an indispens- do so.
able part of any system aimed at
j
Merely to outlaw atomic bombs
preventing the misuse of atomic while permitting nations to enenergy.
But by assigning to the gage jn other atomic energy ac- ;
Authority
and to the Authority tivities without a system of sualone
direct responsibility for all
pervision and control would place
dangerous activities, the need for too great a strain on the faith
inspection would be reduced. Any 0f
nations, for it would not give
materials that the Authority furthem the genuine safeguards to

world

licensing

uses

diverted to

v?Srf f ^ £ Question of fi-

nancmg technique arises with re-

0^iectivls

chanee

I?. cnanS®•

every

Hancock:

through active research and de-

nevertheless, eveh in this

crease;

ards of violations and evasion.

this case, we were not directed to
follow the old-fashioned practice

that.

po¬

Three—Fostering the benefi¬

and

life and property. Improved health
of rworkers lowers labor costs at

given level of wage rates.
Finally, public works and serv¬
ice programs have direct reper¬

and

atomic

cial

re¬

available, his real in¬
will be roughly unchanged.

taxing

any

other

Control

—

otherwise

arid business. Flood control
proj¬
ects reduce the annual losses of

for

Two

all

over

activities

dangerous

velopment

If he « in
is

Assembly
establishing the
Energy
Commission
is
perfectly clear in requiring us to
propose a system of control and
effective
safeguards
to
protect
complying states against the haz¬
Atomic

development facilities in
'
all country of the world?

over

and

energy

ceives from the government goods
and
services
which
were
not

come

y control

materials

atomic

the individual will not necessarily
his real income. If in re¬

penditures, for instance, reduce Federal level. State and local govtransportation costs to individuals ernments are more limited in their

•

One—Tight

raw

affect
turn

eral

are

to, the maintenance of the private
enterprise system.

increased tax payments of

•

ever,

would

otherwise have been
unemployed.5
public works programs of
tiie. thirties largely fair into this
group.

Tfce

Its powers must include:

same

the

The first is that the

reasons.

will of the world expressed in the
unanimous resolution of the Gen¬

merely drafting a treaty and
stopping there.
Second, nothing
in the past history of the world
gives us any reason to believe
(Continued from page 1267)
that simply outlawing the use of
peaceful purposes. The ADA must cock,
was
that
the
Authority
any
weapon
without
adequate
have very broad powers to carry would have
powers of inspection.
preventive controls can be ef¬
cut these twin objectives. It must Does this mean an
inspection sys¬
fective over any long period of
be a truly international
organiza¬ tem that would allow representa- I
jr^durine which Governments
tion, the operation of which can¬ tives of the Authority free and
are Ukelv
not be thwarted by any nation.
unhampered access to all atomic

spection

for

used

Yes, for two Very

token, no direct cost arises how this affects the income
community is involved of the individual.

satisfaction

By the
to

good

in¬

Mr. Hancock:

"You and the Atom"

tentially
security.

also

plans for

services

existing at the present time. Such
a
program
is fully compatible
With, and indeed very important

However, a comprehensive
likely to make an im-

until the full results of the
program become effective," exist¬
ing taxation may have to be in¬
creased. The question therefore

cannot

and

urgently
necessary to meet the deficiences

program is

ice programs involve an
economic
Cost because the resources thus

the

They

stitute for other government eco¬
nomic policies for full employ¬

applied

works

that, although a beginning
has been made, preparations on a

primarily an instrument
of fiscal policy and are no sub¬

ment.

;

safeguards that will prevent

its use?

dicates

not

are

limited

of present

public

panded public works and service
program. Public works and serv¬

review

works, public services,
development projects are im¬
portant to the economy because of

and does not have to

whether

afford

can

and

Public

tion to take account of these longer

community

and

range needs

question

portant contribution toward eco
nomic stability and social prog¬

Conclusion

the

Jl iOI

ress.

ex¬

.With

•

outlays

profitability, but in the broader

As distinct from matters of
financing technique, a second is¬
sue

ductivity
reduce

will

the
be

company.
used

for

and

The
addi¬

tional working capital.

Bryson:

Then

you

Net profit, after

insist

bomb

but

—

adequate

must

system

also

set

up
-

all charges and

provision for taxes, for the year

treaty must not only outlaw

ended Dec.
•
^

31, 1945

,£.-,00^00

was
in

$288,953,

1Q44

controls as against $180,590 in 19 4.

1288

THE

COMMERCIAL & FINANCIAL CHRONICLE
fruitful division of labour, but this
demands
an
international
ex¬

The Revaluation Outlook
(Continued from first page) '
to the old parity, such as was the
endeavor
ropean

the

after

powers

World

War,

Western

wealth and can thus dominate the
other country's
economy,
It is this idea which forms the

Eu¬

the

first

background of numbers

the wave of de¬
after
Sept.
21,
1931,

valuation

ures

when Britain abandoned the

tain

its

balance

can

zation.
If

the

Between

Germany but also in

trolled

industries.
Although all
favouring revaluation (gen¬
erally by a manipulation of the
those

value

promoters
now.

will

differ¬
the

self-sufficient,

expected

develop¬

ment.

Revaluation such

gested

now

is sug¬

is clearly a means of
business trends and

influencing
especially the cyclical fluc¬
tuations by monetary policy.
: ;

becomes

affairs

especially

examines the

one

The

clear

state

tories
from

whilst in Canada and Sweden the

price-level has not risen

much

self in

after

the

franc

dollar

than

lower

than

before

the

One

war.

would therefore think first of a
further devaluation of the
guild¬
er.
The fact that this does not

happen, but that,
talk

people

the

consequence

that

one

should

and

economy

protect

from

against

prices.

are

brought forward in favour

>■.:

the

Wars
a

Napoleonic
"■

certain

which began
overseas.

to look for markets

Britain, for that

reason,
supported the efforts of the South

American colonies who wanted to
free themselves of the
antiquated
Spanish

colonial regime. Britain
in favour of free trade in all
it needed thein for its

the

■

same

position and is fol¬

similar

trade

and

policy, that of
abolition of colo¬

government, or in any case,
"open door" policy in overseas
which

mostly

hitherto

reserved

for

had

those

European countries which had

dominating

political
those regions.*

re¬

position

the object

to promote
export,

tion

import is the thing. Instead
of striving for
cheap exports, the

new

The Bretton Woods
Agreements

now

aim: is

import

cheaply,

Crisis of Plenty" has turned
a "Hunger for Goods."
On

International Trade Organiza¬
carry all the marks of the

American
Woods
creates

into

10%

the

other hand we see in¬
stead of import quotas a
tendency
in the exporting countries—in
or¬

der to oppose the
devaluations
to export quotas to counteract
the

larger buying by countries which
increased the exchange value of
their currency in order to
buy
cheaper.

without

Hidden behind these
arguments,
however, there are other motives.
We have already mentioned influ¬

encing of the monetary cyclical
fluctuations. But beside this there
is

not

enced

less political

allow oneself to
or

dominated

desire

influ¬

another

country.
It

unduobted

fact

that

"free

trader"

than

exercised fatal influences
world trade in the '30's.-

is,

however,

questionable

whether ratification of the Bret¬
ton Woods agreements
will suc¬

preventing these practices

whether
even
if
countries
confirm these
agreements, means
will not be found to
evade

side

influences which

are

out¬

neces¬

sarily and logically consequences
of

participation in
international traffic.
of

world-wide
The

clause

the

"most favoured nation"
which seemed to offer a
guaran
tee
for
equal treatment of al
countries in the '30's was invali

poor

country.
The latter fears to be
dominated by the wealthy country; the rich country penetrates

the

which

wealthy country finds it easier to
be

discriminatory monetary
practices,!.all of them •regulations

and

Political Background

consultation

tions and

*It

should

noted

that

The

Netherlands never followed a pol
icy of excluding other couhtries
from business in its

overseas

ter

ritories but always maintained
_w
_
"open door" policy.

found

intended
international
free

agreements

soon

agreement

conditions of the

become

irksome

for

change currency; (2) For free ex¬
change it is also necessary that
both parties are indeed
free, that
"s to say that they are not under
any economic coercion.
This last

factor is partly of a
psychological
character and will
undoubtedly
have to be taken into
consider¬
ation.

country concerned. ; :
<;v )
We already see a
beginning of
these
attempts
in
revaluations
which have

Business

Confidence

;he economic

taken place.

now

U.S.A.

Necessary

the

stability

development of the

It is true that Canada has
kept
within the limit of 10% prescribed

strong psychological character.

the Bretton Woods agreements.
But, in the first place, the agree¬

It should be admitted that
plans
made for the achievement of dur¬

ments

able

in Article IV, par. 5)

rule from

(in Article XX, par. 4 and
leave a few
openings and moreover - Article
VIII, par. 3 speaks only of discrim¬

inating monetary practices, thereay leaving open all sorts of possiailities

for

import

hidden

export

subsidies

duties,

versa.

vice

I';

■■

Theoretically the policy of the
United States—promotion of free
traffic between countries

much

possible—offers the best chance

restoration

prosperity

the

speedily

world's

possible

doubtless there is nothing so
ikely to promote peaceful coop¬

and

eration

between

ternational

3ut there
he fear

countries

in¬

commercial

traffic.

curbing factors and
complete dependence.

are

This fear caused

recent question

of "The Economist": "Does Amer¬

ica

guarantee

not

that

crisis

tempts to establish

trade.'

tional

feared that

idea

it is

inflationists rise in

promoted by the U.S.A.
increase
the chance
of
a

crisis.

The consequence is that by
this difference in view the healthy

idea

and

the

desire

international

free

understandable

trade

national

for

full; employment and
prevention of a crisis clash with
each other. /
.

Synthesis Between "Free Trade"
and

"Social

Security"

The

main
question
involving
fruitful international cooper¬
ation in the future will concern

the

finding of a synthesis between
the desire for-"national
security"
and "free trade."
At the present
time the two political endeavours

diametrically opposed to

another

valuation
way

one

is evident from the

re¬

policy. We are still a
off from an actual con¬

national

able

How

economy.

difficult will it be to

control

efficiently

world

economy or to induce na¬
tional economies to follow a uni¬

versal

plan.,

-■

'■

Yet it will appear in the future
the U.S.A. will have a pre¬

that

dominating

influence

world's economy.
all

over

the

Notwithstanding

attempts to fend off the influ¬

ence

outsiders

national

it will be found impos¬
sible to resist it, unless one adopts
a
system like the Russian; and
economy

then

even

whether

true

questionable
influence can be

the other hand it

that

warded off.

that

world

the U.S.A. will act

side of
ent

economy

the heavier

balance with two differ¬

weights

economical

U.S.A.

will

the scales and the

developments
exert

the

incomparably

more influence abroad than those
in any other
country in the world.

But,

conversely,

the

not be able to form

U.S.A.
world

will

econ¬

omy
without partners.
This is
only possible if exchange can be
effected to mutual advantage and
if, moreover, the economic devel¬

opment in the U.S.A. gives
sonable

expectation

rea¬

stability.

The whole matter
depends there¬
fore on the fulfilment of the fol¬

lowing
trade

The

of this lack of confi¬

cause

tion

deliberate opposi¬
plan to a natural

every
of economic

course

development.

One wants to force water
uphill.
cannot be successful.
One

That

tries to make
good the lack of full

employment

spending

money. That leads to
of the national
debt,

financial

balance

stability of the
change.
N
financial

good

fore

the

endangers

rate

ex¬

•

policy there¬

to it that

sees

action

public
increase

upsets

and

the

by preventive
right time cyclical

the

fluctuations

cushioned.
Up till now these actions have
mainly
consisted
in
monetary
are

measures,

tions,
and

quantitative

credit

control

suggestions to business,

Switzerland
ment

where

well

the

govern¬

banks

have

advised

industry not to continue
expansion, but to invest profits in
or to participate in
foreign
undertakings.
•; >

There

are

efficient

•

ways

for limitation of unbridled
expan¬
sion.
•
'."'v-:
In The Netherlands the
•

govern¬

ment

one

discount-adjust¬

British Seek

Balances

is at the

prices

employment suffer

dence lies in

free interna¬

This

oack of the revaluation scare,

trol

with

great fault: the lack
of realistic confidence
that they
are
going to be successful.
;
!

said—makes most European counries shy in
joining American at¬

are

factor

con-

Apart
that, liberal methods have
developed like Treasury regula¬
from

now
intends to strengthen
the legal position of the
workers,
so that after a fixed
period

they
summarily dismissed. If

cannot be

not

inflicting an unbearable bur¬
on
industry, this and similar

den

measures may

pansion

curb unbridled

ex¬

undertakings and ex¬
aggerated hiring of labour which
eventually leads to a crisis and
large scale dismissal of employees
who

them

become

burden

for

the State.

If undertakings were to
bear the burden of
unemployment

benefits,
more

they

;

surely would be
expansion of

careful

with

business.

It is, however, not our
intention
to discuss here effective means
for influencing-cyclical fluctua¬
tions.
is

We mentioned it because it
very

interests

present.

difficult matter which
great many people at

will

have

find

something in

this direction, and
direction opposed to re¬
covery of the world's prosperity.
not

the

offing?" This fear of
crisis with accompanying un¬
employment — "security primes
wealth" as Adam Smith already

will

full

also

ments and qualitative credit
trol by the free market.

'-■■",1..; stocks

the

International Monetary Fund. I.
forbids foreign
exchange restric¬

ceed in
;

policy.
Bretton
an
internationa

exchange currency and allows no
changes in parity of more than

"the

will

means

establish

trade

quota-system,
camouflaged by
undoubtedly in

and

circumvent

much

and the plan for the institution
of
an

practice

long

valuation are an exact mirror re¬
flection of those which were used
in the '30's for devaluation.
Then
was

the
was

any

present time the U.S.A.

nial

now

still

ing loom and in U.S.A. of the
cotton-gin machine, a powerful
industry developed in England

free

The Present Hunger for Goods
which

Napoleonic Wars.
Thanks to the invention of the
steam engine, the automatic weav

been

arguments

the

controlled

U;;;;'

;';;;; v-U. territories,

The

with

after the

lowing

influ¬

Revaluation
effective pre¬

it did

mention

After

is in the

further rise in

There

against

injurious

outside.

is believed ot be

ventive

inevitable

war

industrial expansion.

opinion

the

parallel be¬
tween the present position of the
United States and that of Britain

lead the national

supposedly

any
ences

the

would

countries

revaluation, is

similar crisis

Not

was

the contrary,

"30's.

:S-T-

notwith¬

standing the guilder's parity with
the dollar had
already been fixed

England

the- Swiss

75%,

the

the State.

the "black

and

The

similar situation

business

guilder is exchanged
considerably below par, compared
the

field

greater chance of foreign political
clashes owing to the fact that

market" the

with

markets.

final result of

th4e

beginning of 1946.

economic

consequence of this is bound to be
that the world again will find it¬

as in the
U.S.A., the rise in both
wholesale and retail prices in The
Netherlands is greater since

the

world's

Netherlands,;: For

in any case not quite free terri¬
which are partly cut off

In those days devalu¬

value of the currency was already
too high; whereas at the present
time it is thought that one should

This

certainly
their purpose—the

promote the division of the world
into a number of

of revalu¬

simply an act of com¬
mercial
policy > and the conse¬
quence of
the opinion: that the

when

deny it

result of their efforts will in fact

was

anticipate

the

influence,in cyclical fluctuations)

devaluation

ation

currency
abroad
intention of achieving

the motives of the

30's and the promoters

ation

their

do not realize this—and

important

between

ence

and

the 1930s

There

other Euro¬

countries, are revived in an¬
other form, namely in state-con¬

uncer¬

Now

direc¬

systems which before
flourished not only in

war

with
^

this

pean

tain level of prices and wages, one
heard suggestions in favor of rise
in the value of the guilder abroad.

Differences

cartel

and

only main¬

very

continues

one

tion it appears that private trust

payments by stringent foreign ex¬
change and other financial regu¬

lations; which has

■

"dumping"
devaluations

As for instance: indus¬

trialization,
import
and
export
regulations, organization of indus¬
try in public law communities
and, going still further, nationali¬

international

meas¬

being taken by "poor"

now

countries.

gold

standard, will not have been sur¬
prised when, after the first sheep
went through the gate of revalua¬
tion, more followed. Even in The
Netherlands, which now must be
counted
among
the
financial
weaklings, with an exorbitant na¬
tional debt; which

dated

Thursday, September 5, 1946

two conditions:
is necessary for

(1)

Free

the

best

possible exchange of goods and

J
est.

However,

position

Funding of Sterling
Interest-free Basis

(Continued from

admittedly,

the

Argentine

ence.

stronger than that

of most other
holders of sterling
balances.
For
one
thing, the Argentine sterling
balances are guaranteed

against

devaluation

sterling;

carry a gold clause.

What is

they
more

important, British capital invested
in the Argentine is about
twice
the amount of the
Argentine ster¬
ling balances.
For this
reason,
Britain may
eventually agree to
grant
to
the
Argentine excep¬
tionally favorable terms. Sir Wil¬
frid Eadie's mission

tries,

this

Peron

could

meat and

ances

meat

grain.

and

would like
to get the best of both worlds
by

taking full advantage of the sell¬
ers' market while it lasts, and
yet

safeguarding
market.
other

for the Argentine
traditional British

their

exports

The British

view, on the

hand, is that if the Argen¬
the

values

Britain

steady purchases

good

years

and

then the present temporary

state of affairs should not be

ex¬

ploited for demanding top prices
which

Britain

ford to

pay.'

cbuld

now,

ill

af-r

spite of his lack of experi¬
ence, Colonel Peron must be dimly
aware

the

advantages

steady market.

The

reason

why

in spite of this he is not prepared
to conclude a bargain based on

"give-and-take" is that he hopes
to
play up the United States
against Britain. Having achieved
power with an anti-American pol¬
icy, he has now struck a distinctly

strengthening
Britain.

thereby

his

bar¬

position
He

in, relation
bases his hopes

to
on

the principle of non-discrimina¬
tion in international trade, which
the United States insisted on in¬

relies

prevent

nating
and

against

Argentine ;: meat
the

world

into

would

has

buyers'

mean

would be prevented from
use of the
only effective

that,

making
bargain¬

ing

weapon at its disposal,
threat to rely in future on

the.
the

Empire for meat and grain unless
Colonel

Peron

takes

conciliatory attitude.
The

experience of these nego¬

tiations has made official circles
others in London realize the

and

disadvantages
entailed ;in :; the
abandonment of Britain's right to
use the buying power of the Brit¬
ish
consumer
as
a
bargaining
And

weapon.

doubt

that

Argentine
fluence

there

the

negotiations

can

little

the

will

in¬

outcome

slight degree the
Government's
attitude
towards
non-discrimination at the interna¬
tional

trade conference.

Logan McKee V.-P. of I
Herrick, Waddell Go.
Logan
the

St.

discrimi¬

idly applied, the Argentine would
now be safe in
driving the hard¬
est possible
bargain, and Britain

the

fro,m

This

now

States

should non-discrimination be rig¬

its

determined

/'•'/,

when

once

British

Peron

United

Britain

market.

the

Colonel

the

wheat

turned

though

is;

is,

Waddell

meaning

un¬

practicable from
to
1

corporating both into the Bretton
Woods
Agreement
and
in
the
Washington loan agreement, even
practical

realize

terms,
Britain
transfer her pur-;

Argentine
Dominions.

friendly note in his dealings with
Washington,
in
the
hope
of

gaining

harsh

the

sellers' market his coun¬
try would be able to drive a very
hard
bargain when selling
its

;

reasonably high prices for exports
to Britain, and if he insisted on
the funding of the blocked bal¬
simply

present

made

grain by demanding

as soon

to Brit¬

Britain

that if he treated unfairly British
capital and enterprise, if he exploited the present shortage of

chases

Regarding trade, Colonel Peron
knows it only too well that in the

yet

discrimination,

would

ish capital.

bad,

non

would hold most of the trumps in
the present negotiations.
Colonel

how¬

granting of fair treatment

tine

In the absence of the
principle
of

to make any concessions in
respect conditional on the

ever,

1262)

page

year's international trade confer¬

Street,
been

St.

McKee,

Louis

office

manager

Herrick,
418 Locust

Co., Inc.,
investment bankers,

elected

firm.

Mr.

has

Vice-President of

McKee

Louis office in

opened

May, 1943.

tho

■Volume 164

Number 4522.

THE COMMERCIAL & FINANCIAL CHRONICLE

1289

ment

Report Progress

Potsdam Economic Provisions

(Continued from

•systems For example, in our zone
page 1267)
bis- wartime government we have gone in more for
turning
service was a scale
manufacturer, responsibility over to Germans.
bis % French
r "If
before

Germany is become selfsupporting again, so as to relieve
us of supporting
her, exports will
have to be developed, as is rec¬
an able engineer.
General Draper ognized in the level-of-industry
commented on the friendly rela¬ plan.
In the American zone we
tions prevailing at the meetings of have been trying to perfect ar¬
counterpart
is
a
the Ministry
of
Finance, Rene Sergeant; and
his Russiancounterpart, Koval,

•

civil

servant

from

these four.

•

Governor
leave

;:;V'

;

General
M.

from

Draper that
Szymczak, on

the

''Chronicle" General Draper said:
"This past year has been a period

men

Whenever

the

ago

whole

Germany was

^completely devastated, the cities
; In

ruins,
communications
dis¬
rupted. Confusion reigned. In the
Fall there was a big question

S about the crops: who was to har¬
vest them?

The

slave labor had

mines,
three out of every four workers
had similarly gone.

y scattered. And in the Ruhr
;

"In these circumstances

vived rationing and

we re-

price control.

Women and children pretty well
got in the harvest.} The Army

;

helped in its distribution. We got
through the winter.
"The problems which remain
are largely those of slanting Ger¬
many's economy and political out¬
look properly. We should be much
farther
©f

these

the road to

questions

solution

had

France
been invited to Potsdam. As it is,

from this country to get into
French
zone
of
Germany

the

the rest of us had agreed upon a

vis¬

organization of Ger¬
last September or October

the

meanwhile

the Russians

v»"

i ?

"Unlike any previous war, rep¬
arations under Potsdam are lim¬

ited to capital goods; not money,
not the products of the country,
but
was

■

connection with

and Co.

op¬

men

Germany

who have gone

were

their

cause

Dillon, Read

•

"While the

selected

experience

be¬

and

ability," General Draper contin¬
ued, "they have without exception

zonal and

looted property, and reparations.
OMGUS has five other divisions,

generations and the men on the
staff recognize this great respon¬
sibility.

sentatives

with

nies

American

compa¬

investments

direct

Germany to come over and have a
look at their property. The State
Department of course has been
very helpful in that matter. Such
visitors have been in the Amer¬
ican, British and French zones.
Many American branch plants in
Germany are in operation today,
being run by Germans. Of course,
they are part of the local econ¬
omy, which- is completely con¬
trolled, and the American owners
cannot

anything about their

say

operation or the disposition of
their products.
In the U. S. zone,
this is controlled by OMGUS.
"Coal
most

course

one

of European

vital

of the

products

and in Germany its dis¬
tribution is controlled by quadri¬

today,

partite agreement. It moves into
all four zones, and some into other
countries. Apart from a few addi¬
tional allocations under quadri¬

agreement,
out its own

precision instruments,
jewelry.

and costume

"When all four zones are

present,

"At

German exports
foreign cur¬

sold in terms of

are

There is

rencies.

necessary re¬

lationship between the rate of ex¬
change for exports and that for
imports. Germany has no rate of
exchange yet for foreign trade
purposes.
In our zone OMGUu
fixes the prices, with the advice
of the U. S.

Commercial Company.

be two or three years
have
that problem
licked, but by then we hope the
Germans will do the worrying
:

"It may

before

about it.

"The Potsdam

agreement calls

central
German * agency
covering y th£
whole country, with Germans in
the position of State Secretaries
for
industry, foreign trade, fi¬
nance,
transportation, communi¬
for the establishment of a

cations—and in the U. S.-UK area
we

are

ture.

adding Food and
■

■

and

agriculture,

commerce

(both inter¬

international), industry,
decartelization, and restitution of

lives

such

as Finance, Manpower, etc.
point especially developed by
General Draper during his inter¬
view was the real need which the
Army has for business executives
to help it in its tasks in
Germany.
•

The following is General Draper's
comment on this subject:
"World War II was fought in
order to control Germany and the
.

other

enemy nations so that the
future wars could never be waged.

"'The United States finished half
its job when it won the war.
second

The

the

job—that of
controlling Germany — is today
our
country's greatest responsi¬
bility and calls for the best talent
this country has.
y ;f Ilvr1;
part

"In the U. S. zone of

Germany

American

military and civilian of¬
ficials, with their staffs, have the

each zone
arrangements. responsibility

exports from our zone
concerned, we have sent out

So far as

silverware,

trade and

month ago.

demilitarizing

of denazifying and
Germany and at

the same time

providing an econ¬
omy
under which the Germans
will be given the opportunity to
rehabilitate themselves, gradually
improve their living conditions
and eventually become a peaceful
member

the

nations

tween the complete

demilitariza¬
tion of Germany and a working
economy
calls ; for ; brains t from
many
different fields. ? In fact
there is no important element of
American enterprise that is not
required in order to carry out the
military government of Germany.
"American businessmen who are

the

wise

sponsibility
selves

operating their econ¬
the Germans accept
responsibility the job of
military government becomes in¬
creasingly one of policy making
and control. This naturally calls
for the highest caliber of men in
the staff of U. S. military govern¬
ment.

organization of this kind
'just happen.' It is due
careful planning and to a
very intelligent selection Of per¬
sonnel. In the spring of last year,
to very

Mr.

McConnell

Robert
100

about

nessmen

selected

extremely able busi¬
persuaded them to

and

Agricul¬ giveaup their business connections
for
and go to Ger¬
Among the group he se¬

year or so

-V

many.

the

a man may undertake.

He deals and

livesTnot only with
competent men from other busi¬
but he is constantly associ¬

ated

with

British,

French

Russian delegation and has

an J

great

many business contacts with im¬

portant

representatives

prac¬

tically every nation in Europe.
"The

living conditions in, Ger¬
many for the staff of military
government are extremely
pleas¬
ant.
Comfortable and well-fur¬
nished houses are
provided and
there is

such

thing

the

ser¬

vant problem. The food is excel¬
lent and inexpensive and the so¬

cial life is all that can be desiredL
Most of the parties have an inter¬
national flavor and you will find
present

British, French, Russian,
Dutch, Belgians, Danish and other
foreign nationals. Every facility
of comfortable and
is

provided. V.-/,
"Many of the

ness

pleasant living:

important

busi¬

executives who have gone to

Germany have stated very frankly
that they gained from their ex¬
perience

there

much

than

they gave to the military govern¬
ment of Germany. They have not
only a pride in having a part in
carrying out their country's mis¬
sion in Germany, but the great
satisfaction of having played a
part in a highly important enter¬
prise. They feel that they have
gained

knowledge of conditions
which will help them to
understand world conditions bet¬
a

abroad

"The level of

industry for Ger¬
many having been established it
is now important, to build up an
export trade for Germany in or¬
der to obtain funds to pay for the
food which
is
being imported
from the United States. This, of
course, requires that German in¬
dustry be developed so7 that the
needs of Germany will be met and
thb surplus production provided
for export. No man in American
business

has

had

ever

such

ter

above all, they feel that

and

they have had
contribute

the

of the world."

National

Riled

by NLRB

two to

peace
;

Talks

fin't-GID
Unfair

opportunity to
ultimate

■.

one

Labor

decision

the

Relations

Board
Aug. 28 that Clark Broth¬

challenging job or such an inter¬

ruled

esting

Company,
Inc.,
of
Oieanr
N. Y., manufacturers of gas en¬
gines, had engaged in unfair labor
practices in compelling employees
to assemble during working hours

and, of course, no one
has ever had a job in which there
is involved such great responsi"In

one

determining a policy or ap¬

a method many elements
not involved in the ordinary busi¬

proving

America are
First of all the policy

procedure

ness.

involved,
the method must

thought
out from the viewpoint of Amer¬
or

this having been
the policy must be

ican policy, but

established,

discussed and negotiated with the

British, French and Russian mem¬
ment.

does not

policy of placing re¬
on the Germans them¬

omy, and as

naturally good organizers will be

"An

the

proud and interested to know that
the organization of U. S. military

ly stated and a splendid spirit of
teamwork is evident throughout
the entire organization.

and

for

bers of the

government in Germany is r a
stream-lined, effective and fastgoing one. The broad problem of
the control of Germany is thor¬
oughly understood by the staff,
definite responsibilities are clear¬

Germans,

"General Clay is carrying out a
very

the

To strike the balance be¬

world.

returns

"The work in Germany is im¬
portant-to the country and to the
world. It is the most interesting:

quadripartite govern¬

These discussions are com¬

plicated by the language difficul¬
ties and by the obvious different
national
policies. ; Compromises
must
be
made; and agreement
reached and in reaching the agree¬
ment, clear

and fast thinking is

reqmred;;v<^';v:7:^

nomic Division at the present mo¬

personnel consists

military men and
two^thirds of civilians. GreatprogT
ress has been made in the estab¬
one-third

to listen to

the

"anti-CIO" speech,
Press
reported

Associated

from

Washington.

Dissenting

member Gerard D. Reilly asserted
that the
majority opinion was

contrary to Supreme
ings that employers

Court
can

rul¬

outline

their views to workers about unions
if

they avoid attempts to enforce
them, but Chairman Paul M. Herzog

and

tended

John

that in the

employees

Houston
case

con¬

involved

compelled to lis¬

were

ten to the "anti-union speech" an
hour before a bargaining election.

In the decision it

was found thai
the company's labor relations di¬
rector conceded that the firm un¬

dertook

"The. government of Germany is
fast passing from a military to a
civilian nature and in the Eco¬
:

ment the staff

ers

government in Ger¬
many and in rehabilitating the
German ; economy
but
greater
problems remain to be solved. Of¬
lishment of

"an aggressive campaign
against the CIO."
That election
was

set aside but the CIO United

Automobile Workers again lost in

subsequent election held April
9, said the Associated Press, which
a

added;

The ettiplityeefc tyoted 617 to 261
the
Employees' Association*

for

•

ten

the

obstacles

seem

insur¬

mountable,' but that, is precisely

Inc., affiliated with the Confed¬
erated
CIO

Unions

union

took

America.

the

case

The

to the

NLRB,
The

firm

pleaded

freedom of

"When .the American and Brit¬ lected were men from
; u-y: 7'
':.'7y
The Board's opinion said
every im¬ why men of ability are required. speech.
"Another of the economic pro- ish zones are fully merged, the re¬ portant
"Whether We like it or not, the it was "clear that the company's
industry
in
America:
sources of both zones will be al¬
Visions of the Potsdam agreement
Wysor, from the steel industry; United States is now in a position campaign was designed to go be¬
located within the two on the
was that the proceeds of all Ger¬
Strike,' from the construction- in¬
where it is an integral part of yond
basis of need. In keeping with this
mere
persuasion and to
man
exports abroad would be
dustry; Hoover, from the econom¬
aim, there will be in the merged ics
used in the first place for ap¬
department of Duke Univer¬ world operations and it behooves achieve a restraining and coer¬
zones
a
common
export-import
American
businessman
to cive (effect upon its employees'
proved imports. Naturally, since
sity; Hoogland, from General Mo¬ the
the characters of the four zones plan.' The proceeds of all exports tors; and Cisler, of Detroit Edison. learn
as much as he can
about free expression of their organiza¬
from the two zones will be used
A number of these men have com¬
differ, it is very difficult to' bring
the conditions in Germany as well tion will." ■
on a need basis for the whole area
order out of chaos without eco¬
pleted the basic job in Germany
thereof.
Each zone commander
as in Europe.
Mr. Reilly, who has resigned
The businessman
nomic coherence. Insofar as the
and have returned to America,
will supplement those export pro¬
"Mr. Frederick Devereux, Dep¬ who joins the- staff of U. S. mili¬ since the case was heard, said in
American and British zones are
ceeds, with imports as necessary.
In process of being merged eco¬
uty-Director of the Economic Di- tary government in Germany not a dissent, the CIO's complaint
and

factories themselves.
That
the Potsdam understanding

mer

the successful operation of mili¬
tary government in Germany will
affect the peace of the world for

of Germany have

achievement of note.

General Draper himself is well
known in Wall Street for his for¬

;

shall Vassily D. Sokolovsky, Gen.
Joseph-Pierre Koenig, Sir Sholto found that their individual re¬
Douglas, and Gen. Joseph T. Mc- sponsibility was far greater than
Narney."
777/\'V7^:7777'7y^y:7''Vy it had been at home. Decisions
According to Gen. Draper, an made every day by the staff of
export exposition was held at Mu¬ military government affect the
a

nesses

handling■;food

number of repre¬

in their

developed
a strong zonal government operated by Germans.
* \
"The most difficult problem we
have had to deal with has been
that of reparations, and the level
<©f industry. Potsdam gave us un¬
til February 2, 1946, to work out
a plan.
Prof. Hoover worked up
one for us, we modified it to suit
other
American
official views,
and in the end that plan was fur¬
ther modified by the other three
powers, so that it was not until
JVlarch 26 that all four agreed
upon a level-of-industry plan for
'Germany. This of course has not
solved all the problems, but the
:fact »of • agreement was itself an

never

when

assignment

ready helped

zone

have

him

United States.

branch and Dr. George Scatchard.
for the Control of Scientific Re¬
search in Germany."

economy of Germany and Europe
as well. It
may really be said that

united.
we could have made much prog¬
Germany will make progress to¬
ress.
At that time the Russians ward the goal of Potsdam. I am
; Would have put up no obstacles, hopeful that in the meeting of the
In my opinion.
foreign ministers scheduled for
"But that was not to be, and this Fall all four zones will be
many,

Russians

them

among

The Economics Division of OM¬
GUS is subdivided into branches

economic unity are
and to set up a provisional gov¬ such
commodities as hops and
ernment, France did not want to lumber;, and we hope to be ex¬
!v go along. This set back the prog¬
porting some manufactures before
ress very materially.
Had there long; such things as chinaware,
not been this French situation

's—-".

Y:"

"The

organizations;

Governor M. S. Szymczak of the
Federal Reserve Board, who wil
head up, the Trade and Commerce

nich about

central agency for

a-vis

increase interzonal trade in Ger¬

ness

export capacity exists.
"Apart from this effort to as¬
sist American buyers, we have al¬

partnership
only afterwards; Was given the
i; veto power without being bound
by any rules as would otherwise partite
have been the case. Thus, when works
France was taken into

subject ""up* "in the Control
Council, the British accepted the
proposal, but the Russians said
they considered it would be a step
away from unity. They suggested
that all four powers rather try to

posed central agencies as such,
but only at this time. The Con¬
trol Council is made up of Mar¬

During his interview with the

emergency in Germany, but
we've pretty well got through it.
'{/,■ The situation is somewhat clarified. The lines are laid. A year

the

zone—and later when it is merged

OMGUS also will assist business¬

now

the lan¬

many. "

reports as chief of the
Trade and Commerce Branch of
the Economics Division of OM-

Board,

Reserve

look

rangements under which Amer¬
ican importers can get into our

fully with the British—into that
zone as well to place orders for
goods. Until now, Germany's lim¬
ited postwar exports have been
operated only on a zonal basis.

Federal

would have to

guage of the Potsdam provisions
on this point.
When we brought

in Germany.
He has obr
twined quite a few, more from im¬
portant governmental and busi¬

agreement.

■

nomically, some progress at least
is to be expected to result. This
merging takes a little time to ef¬
fectuate,; since they. have , in the
past' been

operated oh; different;

"When about six weeks ago at

the

vision,

has

returned

from

Ger¬

foreign ministers meeting
Secretary Byrnes proposed eco¬

many recently in order to recruit
businessmen to take the places of

nomic

"unification,

some

said

something

Mr.

Molotov

indicating

of the men. who have

he pleted

com¬

only has the opportunity to dis¬

charge

he will gain

their first year's assign¬ which

should

have

duty to his country but tirely "as
a

business experience

will be

well

extremely helpful cedent."

been

dismissed

ihatter of policy

en¬

established judicial pre¬
.

^«

WaKfc It. W •i' 'W '■

w wf'WAWi'W

jwjms,

1290

THE COMMERCIAL & FINANCIAL
CHRONICLE
mm in

I'f mi.im.iuii

w- +

-*■

u.; .""'i "•'

^.i-m m

if it

...

■

;

Thursday, September 5, V-Wt

•

■

had been the Galveston

;

■ ■ i ■■'.

united

Last fall they said—with

(Continued from page 1267)
A pnysiciaii, for example, has as
exacting and exhausting a work¬
ing day as any "high pressure"
business

¥et he

executive.

must

keep abreast of all developments
affecting the public health. When
it is jeopardized, he does not wait
to be mobilized; he goes into ac¬
tion under his own steam, spear-*
heading the fight, providing lead¬
ership, teaching, preaching, work
ing
unself-shly for
the public
good.

good neighbors; the men in offices
(ments of federal paternalism. De¬
and factories who know their own
spite crippling controls, and with¬
associates and employees.
out increasing the national debt
Frankly, jf we can't make our by a dime, free
enterprise has al¬
own team—from customers
tp of¬ ready produced and delivered to
fice

boys,

from

farmers to file
veteran mechanics
youngest .apprentices

clerks,

from

the

understand

what

the

score

don't

think

is,

claim to
If

can

understand it ourselves

can't

economic

make

neighbors

our

and fellow townsmen take

per

The

(

health

economic

this

country is an equally serious mat
ter.

But

one

businessman,

association—-not

tire

even

the

profession

of business man
maintain healthy
economic conditions unless public
opinion is aroused to the point
will

shoulder

work

shoulder with

So, just as it is
doctor's bus.ness to educate and

us.

marshal public

opinion when the
public health is threatened, so it
is our job to rally public opinion

;/v;<

economic

when

V Too

health

dangered.

en¬

>.,VA

for
granted thac, because we see the
symptoms of epidemic disorders
in our economic life, they must be
apparent to all. This just
am t
of

many

so."

one

man

cure our

}'"'}

Many, of
no

take

think that because
group of men can

economic maladies single-

is nothing we can
do. This is another fallacy.
;:
■
When an epidemic breaks out
anywhere, every doctor is in there
—-pitching. Every medical asso¬
ciation is in there—pitching. With
more work than any individual or
group can do, each does his best
and is glad to get whatever help
he can.
Yet, in spite of these
pressures, each finds time for the
educational
job
that must
be
done.
If the public is not in¬
handed, there

•

V.' i".

they inform; them,
in
understandable, forthright, con¬

formed,

vincing terms.
Can

Economic
.

Health

Economic health is
death

Crucial

Responsibility

■

do less?

our

life

responsibility. We survive
with it, or everything we

only

stand for and have built up

ishes with it. Nor

are we

per-*

express-,

jug just a selfish interest. Without
a healthy economy no American,
whatever his station in life may
he
?

can prosper.-

;

Don't

you think : that people
ought to be informed and aroused

.when symptoms of acute danger
to the public interest become ap¬
parent?
:
We think so, but sometimes the
question arises—told by whom?
/ Personally
I don't think that
this question is even reievent, be¬
cause it suggests that
providing
-

the American

break

them, no one can
inform and arouse public opinion
for us. For these people are the
American public—period!

no
en¬

agement—-can

where

interest in things that wil

make

Public Opinion Must Be Aroused

sonal

Today

people

making

are

cisions which will shape the fu
ture of this country for genera¬
tions to come.
The Administra
tion in

Washington is taking ful
advantage of this fact. OPA alone
has kept a staff of four thousand

can

be delegated

group of individuals.

It's too big a responsibility. Every
business organization, every busi¬
ness

man

make

others

and

every citizen, must
job—and persuade
make it their job—to

his

understand

just what is happen¬

the bureaucrats will.
convince. "

that

business

goes

the

rest

stand

for

will

lost forever from the face

earth,

•

of the

■

But there's another face to this

coin.
to

the

While

our

clear duty

diagnose what is wrong with
way our economic system is

being crippled, bled, and injected
with

alien

ing to America's economic life;
what simple, basic steps are im¬
perative to restore good health.

The

real

danger

small part of
come

saturated

knowledge.
mous

that

not

the public
with

that

be¬
detailed

may

enor,

schedule. It is hard for them to
justify spending billions of dol¬
lars for jobs which already exist
but they are trying their best.
From

the

Deal's

New

fabulous

hat

confidence

their

litter.

This is

that

our

productive

power

the

essential

pay

their bjls for fifty-two weeks
Their rent comes due

year.

month: out of the twelve.

every

Any industry worthy of the name
support its workers, and

should

management faces np more im¬
portant job, as I see it, than to
devise ways to spread the payroll
over
fifty-two weeks a year,: .

served well

threat
as

unem¬

-made

•

to. heat the drums of. bigger and
better bureaus.
"
:

These

desirable

But

did

not

suit

the

CIO

leaders'

version,

high

Enterprise

System has

shown

one

the

they
can!; be
fr$
by one.-'"/'VV'

one
*

•

'k>;'

'',

■

Strike Abuses

What can be done about the
epir-y.
demic strikes?■■
'Wi
A small group of labor

are

now

auctive

with

coal

plays

Mr. Lewis
deciae>'
be mined.
Mr. ..

a mouse.

when

leader? f

using mis country's proT
as
a
cat

economy

may

lets

out for such muddle-headedness—

federal

not

officials

Three things stand in the way
of this goal. The National Assoication of Manufacturers has con¬

when

suits

him.

automobiles

when

his

and

groups

joined

individuals

•

in the fight.-' A

victory

by any one of them is a victory
for alfe-a yictory for pur nation's
have been victories.
More and

there

And
-

•

;

leaders in other

citizen/

rr;

Simply
epidemics

Mr.

demands

Reuther

made

only

met.

are

trains stop when Mr.
Mr. Johnston

Ail

Whitney and
A totalitar¬

say so.

ian

state could
scarcely be more
dictatorial. >
•
' rt '
v-1'- ■•
Monopolistic powers, in matters
,

which affect the economic
life of

every.

American, have fallen into

the hands of

through the

complete

our

few labor leaders
failure of

government

establish

fair,

consistent
labor
relation?
policy. Yet it is possible to esr
tablish a fair policy that is jn the
interest of every -worker, organ¬
ized or not, as well as in the

pube

lice,interest.'

Such a policy cannot be
achieye#
through the makeshift
measure?
proposed to date by those
who
jockey for power at the expense
nf
the public's Vital interest in
Some of these pro-.'

peace.

posals bear attractive names, and

itisnotenough,formanagement
to say that we
.
oppose them.
must also make the
general

lie

understand
them."

why

•

pubr

oppose

;

To get down to. cases,
a, major*
ity of industrial management

op^

the

poses

intervention of "fact¬
boards"—not at all

finding
cause we

putes

be-tk

oppose settlement of dis/

basis of the facts in¬
volved, but because in practice,
such boards have
simply rubberon

stamped wage increases
with the Administration's

line

arbitrary

formula, arrived

Industrial management, by

overwhelming
majority, .: favors
prohibiting employers from coin Kt?'.
tribating to worker-welfare funds
controlled

does not

the

mean

unions.
This
that management
,

funds for workers',* wel-T
fare, If does mean we realize.that'
controlled by such union
as John. L. Lewis are far
opposes

from

implementing .industrial

peace,-

•

•
--

*•

Compulsory Arbitration No JIelR
'We

must also make the
generals
public -understand
why-manage.

ment believes that
compulsory ar¬

bitration is no belp-^and
tional. hindrance — to

out

these

plagues

the

campaign against
gives them added strength.

hindrance be*,
the Adminis¬

tration practices
it, tends .toward
either a deadlock or
government

operation, until management ac¬
cepts whatever terrns government,

and

labor

decide

can

be forced:

down management's and
the pub¬
lic's throats.

;}■ .•;;■

>/;

Management accepts}- collective
bargaining and practices if in the-,
spirit, as well as in the letter, gl
the law. It js
acutely aware that
the public interest
demands bar-"
mony between labor and
manage¬
ment. But in recent
years

ized labor has
shown an

organ-,

increas¬

them,
-

These three epidemics from the

Potomac

controls,

strikes, bureaucratic
and deficit spending.
be wiped out. It is our

are:

Special privileges

the expense of all other
is

labor, nt

citizens/

unsound for American
work^

ers as

it is disastrous to
.economic

health. A

national labor policy
Which j? fair to all, and
partial to"

none,
can
be achieved1
can
only if
business and the business of every public opinion insists
upon it ;It

They

It is po
ject? both coercion and a third
element in the essentially two*.
/.
sided give-andrtake, of collective,
peace.

„

stamp

addf- '

industrial
help because it in¬

stated, - threes aerious
sapping every citi¬ abandoned
its role of impartial,
zen's hope
to enjoy -the good
umpire. It has even taken to
do-,
things of life. John Q. Public—
ciding major issues before collec¬
you and I and our neighborsr^can
tive bargaining has begun. -: • i
will. Every day that we delay our
own
wholehearted participation

-1.

ing reluctance-to bargain out its.
differences, And government has.

are

at without any
regard for the real facts
involyed,

sistently • and persistently fought bargaining.} It is
cause arbitration,
these three evils. Other business

organized labor—have come to
realize that production is the way
to get what all Americans want.
Anything which stands in the way
of prodction at this time darkens
the.; future of eyery /American

thing they have sup¬
President with advice
which has resulted jn more ? bad
guesswork than this country can
For

plied

•"■■■..'

how

see

them-*t

They declared that not only must
the
government
employ
many
more
millions—wages must be
raised too, from 15 to 50%. They

top

■a'/

■!

our

Murray lets the country have steel

groups—even in government and

employment,

throw

against

wiped out,

; /,

equally fervent wish to
entrenchthemselves
in
power.

things—recon¬

wages, steady work with a future—
have not been, and cannot be,. ac¬

•:

Let's

deflation

stick with which

economic ; suryival,

Federal Agencies Cannot Be
W;. ■
Effective ■>/y}^'

It has taken the great hurdle
vaguely and impersonally
that they are remotely af¬ of reconversion in its stride.
afford.
fected, or that anything is wrong.
American
manufacturers
are
In business, as with the medical paying the
The Administration has been at
highest wages jn our
profession, national and state and history,
he mercy of bureaucrats, who
exceeding
even
the
local associations have their work
hourly wage in any wartime year. first beat the drums of deflation.
cut out for them—plenty for all,
The
enterprise
system
has Their bureaus were sacrosanct,
and a ceaseless job, too. But the achieved an
heir jobs were inviolable because
extremely high level
groundwork
for
confidence
in of employment in one postwar --so they declared—deflation was
business, as jn medicine, begins year, instead of the five years upon us. The subject was news¬
with the local practitioner; with which
Henry Wallace proclaimed worthy. So the tax-eaters of the
the businessmen in'every Amer*
necessary—along with his vast Administration rode their imaginican" community, the men who are
make-work, pyramid-like monu-: ary ebb tide with as much fanfare

only

everyone—that
insurance was

The

quate.

but

our
economy—not complished by federal agencies.
Yet the vast Janisariat of the JP,otear it down.
'y.v:};;y / //v/omac
has not been idle.
What
Despite the tremendous strains
which have been put upon it, the have they been doing?

soundness

part of the public is at best healthy and robust resilience,

aware

for

ployment

they have pulled
another
magic rabbit.
At a time when came out not only for sweeping
production is checked and handi-; wage increases—prices must be
capped by them in its desperate controlled and rising costs must
effort to catch up with
demand,; be (quote) "absorbed" (unquote).
they have added another theory; Any poor freshman would flunk

mean

People must be made

realize

And I

viruses, let's not fall
into the trap of adding to public
confusion and anxiety. Let's build

Suppose we do overlap a little.

was wrong.

five years ahead of their job

are

work

down in the "Dead Sea of Collec¬

job which

that their timing

strength

now!
/

citizen

behind schedule—that it was
to the government to make

tivism, everything which they and

people, • those mil¬
jobs which the bureau¬
crats promised as a long range
project. Wrong-guess Wallace and
his die-hard New Dealers admit
of

was

people with infor¬

American

straight face—that eight
million people would be jobless
by Christmas—that employment

who
is "disastrous¬
propagandists ly" great, and our purchasing fouled up the production lines of
expert,
effective
industry from the Gulf to the
busy, spending thirteen million power
insufficient
except
for
dollars of taxpayers'
money
to (quote) "a number of fortuitous Great Lakes and ocean to ocean.
sell the public its glittering brand circumstances,"
By the time their guesses proved
(unquote),
:
Reconversion in
record
time
Of gold bricks. But it would be
groundless, they had accomplished
thejr purpose.
"carrying coal to Newcastle
to top wages and high employment
This jumbled ideology of the
enumerate the -endless array .of were;; not; / accomplished
by / ?
broken-down
economic
propaganda set-ups in this coun
system coalition of bureaucrats and labor
leaders would be laughable, ex¬
try which are today working dill
destined for the scrap heap. These
gently and skillfully I might add, essential needs of the American cept for the fact that their ac¬
to remake America to their likmg people
were
met by
business tivities have dealt this country a
—and profit.,
body blow.
Our economy has
management.
;
'
But how many of the American been hit with such a mixture of
In
country
after
country
througout the world, individual people do you suppose realize "bolts and jolts" (sleeping
and
benzedrine) that nothing
freedom, as well as the freedom this? One-tenth of one per cent
of individuals who band together would be my guess. How many not even a unique case of infltibeen told,
in their own tionptry deflation—is impossible if
to conduct a business, has been have
such medicine men continue to
terms, by their own business lead
auctioned off to the highest bid
hold the public pulse.
der—to
increasingly,; powerful, ers? The only possible answer is
•not/enough.
highly
centralized,
collectivist
The Responsibility of
states. No group in the world to
Businessmen
Management Must
day is promising so much, or de¬
Regular Employment
Businessmen do not have
livering so little, as the collectivto gef people to listen
It is as much our responsibility
ists.
In fact, they have done a
to foresee and meet the economic them. But they do have to speak
flourishing
business
m
They do have to diagnose
needs of the American people;,as up.
promises.
it is to keep busihess solvent and what is wrong, without guess
Industry, on the othe
meet the weekly payroll. One of work. They do have to lead this
does not have to promise more
basic needs which manage¬ country back to economic health.
than it can deliver to the Amer¬
ment can foresee and on which it It is our business; our direct re
ican people every hour of every
can take resolute action is regular
sponsibility; yours and mine. If
day. But it does have to take its
we don't, we should no more call
story directly to the public—m employment.
ourselves a part of business man
I feel that industrial manage
terms of what is good lor John Q.
ment's next big job—starting now agement than a doctor who fails
Public himself.. •}};},; .
is
to
undertake : to - provide to visit his sick patients is worthy
Having the best product is not
of his profession#
steady employment.",.It is a " '
enough unless the public wants it
As industry sees it, the cure for
which only management can "do.
—enthusiastically. We have got If
there must be temporary shut¬ what ails the American people lies
to keep on improving competitive
in production, j\lore production.
downs and cutbacks in industry,
enterprise.
We have to
management should figure out Uninterrupted production,
it so that each generation finds
Once maximum productivity is
some
way to carry the workers
it attractive as well as -reliable.
through such operations, Industry achieved, the flow of goods that
And we have got to make it our
must also help the worker, build our economy cgn turn out will
personal responsibility to demons
adequate ■ unemployment
insur¬ knock the wind: out of inflation.
strate, beyond the shadow of a
ance, pension funds and sickness It will drown black marketeers
doubt in the public's mind, why
and
health benefits- for himself like rats. It will stabilize prices
it is the best economic system on
at a level where people bould af
and his family.
the market and how it serves the
ford to live well. It will maintain
j Year-round employment is cer¬
public interest.
- y"
tainly not easy to achieve through¬ the steady high level of employ¬
the
better
provide
out all industries.
Maybe not at ment and
Out-Convincing the Bureaucrats
chances to get ahead which all
If we don't convince the public, all in some. But workers have to
Americans want.
: ^
eat 365 days a year. - They must

mation essential to their survival
as free and prosperous
individuals,
to any one

the

lions

a per

'■

' 1

American

/
-

A."ar»r

basic

absolutely

and
duction. 7

industrial

uninterrupted pro¬

peace

bankrupted their citizens as well
themselves.

alone

* spark-plug
business
communit¬

can

where

ies

public

Nobody; gains from a strike that
stops production. ; The General

astronomical federal debt is owned

ing shaped.

citizen in this country—
drastically reduces his ex¬
penditures. He has to. It hurts,
but it has to be done.
•
/,
\

I could say

Motors strike cost labor $112,896,-

COO in lost wages.

It cost the com¬

and the automobile users of
this country 400,000 cars, with a
retail value of $500,000,000.
J
v
I do not believe that the rank
and file of American workers are
pany

responsible for what is happening
yto our. economy. I do not believe
that men with any freedom of
choice would stay' on strike tor
117 days over a difference of a
few cents a hour, if they realized
that it will take therm fourteen
,

I years to

make

that

labor

what

for the pay they
from the job. Yet
leaders call

lost while away

"winning a strike" for the Westinghouse workers.
j.The establishment of a sound

impartial national Tabor' relations
policy;which restores equality at
the bargaining table is imperative.
It is at the ton of the list of things
which must be done to achieve

production,-and tp in-r

maximum
sure

healthy progress for all of us

-^Including

every£ Americap
i
*
?,'R' ii!
*
j*>

worker.

Controls

Bureaucratic
;.:i •;r .tute

What

Substi-

be done about the epi¬
bureaucratic • controls

off prosperity?-

choking

are

for "Tree' 'Market

can

demic
that

■■■

Specifically, what ; can be done;
about government substitution of
the

OPA for

market so

free

es;-

? .
OPA is not price control; it is
profit control. OPA does not pre¬
vent inflation; it merely -hides it.

sential to economic health?
-

■:

have

restrictions

OPA

many

sabotaged nor¬
production and distribution.
Yet OPA is still with us. Black
cases i

completely

mal

every

are

still with us.

be¬

Nothing that you or
to thousands of peo¬

ple who are,,as yet, unconvinced
in those communities, could pos¬
sibly carry

mind.

..-T),>*;^

is widespread

suspicion that such
earnings are purely temporary,
et be balanced before this coun¬
obviously lower prices would be
(Continued from page 1266)
try's economic health can be re¬
in order.
This situation is typical
stored,, the budget must be bal¬ employment which we have at¬ of many, in that present prices
anced at a level which American tained, if we carry on together
discount at least partially, though
families
can " afford.
President as we did during war time.
not completely, potential earnings
Labor, management and farm¬
Truman
recently increased
his
and dividends.
;
:
official estimate of what the gov¬ ers, with the help of government
Applying this specific illustra¬
ernment would spend this year wherever it could be useful, have
tion in its broader aspects, we
made
this
great
start toward
from 35; to 41 billion dollars.
might point out that earnings of
Forty-one b;i 1 lion dollars peace-time readjustment. If we the stocks that
comprise the Dowamounts to one -quarter out of continue to co-operate, to work,
Jones
Industrial .Index
(now
and to produce, we can attain a
every income dollar produced by
priced at 19Q) were equal to $1.88
this; country's work; I think that richness of life that will be a
for the first quarter and to $3.05
every "family in This land would credit and a benefit to*all of us
for the second
quarter, making
think twice before it decided fed¬ now living, and a real hope and
$4.91 for the first six months. The
eral
services
were t worth "that
promise to those who come after
index is high on such earnings,
:
much money—a charge of $900 us.
•'£ v. and
certainly the present price
against the income of each family
Safeguard Labor's Gains
discounts considerable improve¬
of' four.
..:-yy1
,We must retain the safeguards ment in earnings.
However, if
A dollar taken in taxes is a
against exploitation which labor anticipated earnings materialize,
dollar removed from production.
wan
after' : the
last
depression. the Dow-Jones Index would ap¬
The civilian employees added to
Labor must continue to have the pear to be capitalizing earnings on
the-federal Tjpayrottd^
opportunity, through free collec¬ about as low a basis as at any
seven
years have cost the tax¬
tive bargaining and free political time during the past few years
payers $3,397,000,000 a year plus
action, to improve the lot of work¬ and the obvious conclusion is that
the possible production of one and
Not only must

Record

the federal budgw

This

ers

increase

and to

their partici¬

ZiV:
pation in public affairs. yy-'^-y^y
plague of deficit spending

half million people. ;

•

can

perhaps more than any

Labor,

other group,

has consistently sup¬
ported the objectives set forth in

Franklin

Roosevelt's

memor¬

•

buy

us—-must

and conservatively until
supply is given a real chance to
wisely

told the truth about this.
'

They have been frightened by

match demand.

I «'

not, and it cannot,
balanced economy. No

OPA could

maintain

government agency can ever re¬

them.

what may happen to

They

know that their indi¬

deserve

and prosperity can

vidual security

only on increasing pro¬
They must be informed
to what stands in the way of
built

duction.

place competition as the natural as
policeman of prices. But the fight production.
They
must
under¬
against a controlled economy can stand the simple, direct steps ne¬
be won—and it will* be won—if
cessary for a healthy economy.
•
the American people keep ever-,

lastingly; < at ; it, L Freedom;.; to;. be
productive is in sight, but it will
take every effort we can throw
into the balance To win through
to solid ground, ■;£:£
,*[2!
'

.'.-.■.T'' /
The
V

■'

What

about

the

spending

deficit

-•■•T V

ment?

'When "a

Spending

epidemic
our
■■'.v

To reach them with this infor¬

mation is the number one

job of

every
businessman - andevery
business association.
It is a man-

job, with more to do than
of us can ever accomplish. We
f 'ifvTjiT''1;-:';- need all the help we can get. Un¬

Epidemic of Deficit

govern¬
■

government has lived

size

any

like organized labor,

I know that

and do
not intend to let any "jurisdic¬
tional" disputes stand in the way
of serving the public interest.
you

cannot afford

and I

beyond its means for some fifteen
years the condition might well be
diagnosed as. chronic. Our govr
ernment is not something sepa¬
rate and distinct from us.
If it
debt,-we are in debt.
lives beyond its means, it is
is

If it
living

someone

does

It is

other

business

usualy asks, "What good

talk

to ourselves?"

fair question and deserves

fight too.

thing

like the time our govern¬
has " been '*■ spending
with

Other gov¬
tried it have

tives:

This is too big a
us

alone.
your

alone,

But yuu

job for

any
are

associations.

„••

any one

group

of us

key men in

and

remunerative

jobs for all; incomes high enough
w provide adequate
food, clothing
and

fair

the market is in
than

recreation; freedom from un¬
competition and domination

by monopoly;

adequate
health
more effective Social

protection;
Security
measures;

Foreign Situation

How much of the recent hurried

selling

area.

buying rather
On the other

liquidation
fears

hostilities

attributed

can

outbreak

the

Europe

actual

moot

question.
Recent

developments in Yugo¬

slavia probably merely represent
the prelude to a more serious
showdown.
It is apparent that
the real crisis in the making is in
Russian-Turkish relations,
with

Russia demanding revision of the
Montreux pact to provide equal
control

Dardanelles.

the

over

Heavy

Soviet forces are known
to be in the Balkans, and the Rus¬
sian policy of first taking over
and then

expressing a willingness
affairs naturally cre¬
fears, since an overt
act
against Turkey would very
probably bring Britain into the
picture militarily through its mu¬
to

discuss

ates

some

tual assistance pact.

Investment
include

calculations

recognition

must

the

fact

that the foreign situation may be¬
come

more,,

menacing,

but

rather
than
less,
serious repercus¬

sions businesswise
more

than
The

As far

Money

position

remote

not appear

possibility.

Question

the present technical
the market is con¬

cerned, there is unmistakable evi¬
dence that the supply of funds
available for investment has been

insufficient

support

the

price

structure.
This

is manifest not

only from

the situation existing in the new
issue market but also from the

hand, collapse of the earnings convulsions resulting from the is¬
picture would no doubt bring a suance of "rights" to stockholders
substantially lower price level.
to subscribe to additional stock.

V.4What's Needed

Rights."

forward

move

now

useful

y It

'?■'"

should be recognized, as has

a healthy bull market, financ¬
ing by corporations through
"rights" leads to buying rather

frequently pointed out by than to selling, but with present
previous occasions, high tax rates and with the ex¬
that the present economy is prob¬
isting ban on borrowing on stock
ably in the early stage of a dis¬ collateral, it is virtually impos¬
sipating consumer's boom. Latest sible for wealthy investors to
available data compiled by the build
up sufficient funds to take
been

the writer on

Federal

Board

Reserve

that

manufacture of non-durable goods

large

offered

blocks

via

stocks

when

the

"rights" process.
Hence,. Targe investors are, faced
with the prospect of either selling
the ''rights," thereby depressing
the stock, or else liquidating other

running at record levels
and educa¬
since V-J Day.
Inventories have
all. .;,
been building up and better qual¬
Labor, too, has been in the fore¬ ity goods are becoming rapidly
front of the battle to end intoler¬
available, so that much of the der investments
to
needed
obtain
ance
and wipe out bigotries of ferred demand will be
satisfied, funds.\■ •••.*>/■>■•'
race, creed and color,
before long.
/:>//;/
■ ■://;■ -Ty
Considering the huge volume of
I salute the hosts of labor for
On the other hand, a similar inr
prospective offerings needed to fi¬
their magnificent job in war time dex
of
durable
goods indicates
nance postwar plans of industry,
and in the beginnings of peace, that production since V-J Day has
the real test of the absorptive
at
and urge them on a further ef¬ been
near-depression levels.
power
of
the market still lies
forts in. behalf of the rights and However,
during recent months ahead.
Until it is demonstrated
numerous price adjustments have
dignity of mankind,
.'y&y*.
that ample investment funds are
been granted by OPA and cessa¬
available to finance industry's re¬
tion; of
strikes
has
permitted
Non-Citizens in U. S. to Be marked expansion in durable quirements and at the same time
to provide funds to finance a ris¬
goods industries.
Industrial out¬ ing price
Under Freezing Controls
trend, a defensive rather
put in July, for instance, estab¬
than an offensive investment pol¬
;The Treasury Department on
lished a new postwar record, with
Aug. 27 took action to place prac¬
icy would appear warranted.
the FRB index of industrial pro¬
tically all foreign persons in the
duction estimated at 174, com¬
United States in the same posi¬
with 159 in May when
Buckley Brothers Open /
tion under the freezing controls pared
strikes severely restricted produc¬
as American citizens.; Its. advices
Wilkes-Barre Office ^
tion in heavy industries.v Much
in the matter added:
of the increase in July was due
WILKES-BARRE, PA. —Buck¬
This
was
done
through
an to the
high level of activity in ley
Brothers
of
Philadelphia,
amendment of General,, License
steel mills which operated at al¬
members of the New York Stock
No. 42 which unblocks any indi¬
most 90% of capacity throughout
vidual in the United States who
the month.
Auto and truck pro¬ Exchange and other leading Ex¬
has been

tional opportunity for
"

•

■

was

not

Oct. 5,

blocked

1945, and

blocked
of such

because
an

any

country on
the

interest

individual.

engage

trans¬

actions

with, or involving prop¬
erty of blocked nationals.
Fur¬
thermore, by an amendment of
General

Ruling No. 11A issued to¬
day, General License No. 42 will
not apply to German and Japan¬
ese
citizens or subjects who on
or since Dec.
7, 1941, have been
within
Germany and Japan or
within any other territory while
it was occupied by those coun¬

You and you' tries."

new

postwar

highs and by the end of the month
was

persons licensed under
License No. 42 are not

authorized

reached

duction

organization

"Treasury officials pointed out
under
other
similar
that, : as
General

operate at a loss for any¬

which

must

Bill"1 of

4»11 achievement of those objec¬

licenses,

many

and

men

could

ernments

"Economic

leaders,

a
straight answer.
It doesn't do
its
taxpayers'
means. any good unless we reach and
convince
the
general
public—
Every dollar it spends comes out
people
who
are
at best
only
Of your pocket and mine. ' '
^
No business and no individual vaguely aware that this is their

reckless extravagance.

able

trips around the
country, talking to key association
In

beyond

ment

the
for

Trsiman Lauds Labor's

But

consumer—all

(Continued from page 1264)

production for further repercussion in the stock
fourth quarter is larger than market, at least at this time.
the third, so that earnings in
Scheduled

share.

•

opinion

much weight as the the final three months should be
It hurts bureaucrats to balance direct, informal and informed en¬
at least equal,
and most likely
the
federal
budget within; the thusiasm of their local business¬ better than, in the preceding three
bounds of what the .taxpayers of men, ' talking
about the things months. Thus, barring unforeseen
the nation can afford. It means that they believe in. There is no
difficulties, demonstrated earning
that many of them would have other way I know to do the job
power appears in nearby prospect
to leave the government payroll
before us.
■■ /.
■,y'"~y that would not only justify pres¬
and
find productive work.
Let's all pitch in — now — and* ent
But
prices but substantially higher
public opinion is still stronger work with John Q. Pubilc to wipe prices for this particular common
than bureaucracy.
If the public those three epidemics — strikes, stock. Such earnings, if witnessed,
insists that their government live price control and deficit spending would most
likely be translated
within their means—or else!—ex¬ —off of this country's slate.
into a larger dividend disburse¬
travagant borrowing and spending
ment
before the year end.
If
will stop,; no mat'er how agoniz¬
earnings do not materialize for
ing it may be to the bureaucratic
one reason or another or if there
•

be stopped if you make : it
management's unremitting your business to tell your ^neigh¬
fight against1;.'a: state controlled bors what it means to themiif > ^
' T, /
^
<Y #
economy, and all that goes withdt, ,'Vv ^
r
•
Industry's Educational Job
has not been lost. More and more
The job - before
us is
fundad
people— more and more of our.
leaders have come to realize that mentally T that ; of
making
the
American people understand' how
maximumV- production,
js i this,
country's economic salvation.
,
they can get what they want and
We -cannot come
out of the need. They are being told many
storm of wartime stress and strain conflicting stories by those whose
until wartime controls are com-, efforts, if successful, would* add
pletely .eliminated. But there is up to total state ^control, not just
reason to hope that more realism
of business, but of every phase of
"
;
'
'
will now be displayed by the Ad¬ American life.
ministration in removing some of
Part of our job—yours and mine
the factors which Throttled pro¬ —is educational. We have simply
duction up to last June.
.
' got to get across to our neighbors,
Congress has decided to keep our employees, our customers and
OPA for anotheri year, so the job the whole American people, the
before us is to tighten our belts truth about what is happening—
as it concerns
and keep production moving as
fast as the halter of bureaucratic
They believe that business earns
controls - permit.
The American fantastic profits. They must be
markets

The Market Outlook

leaders in hundreds of

citizen is in debt—and the

1291

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4522

Volume 164

annual rate

4,000,000 units.
in

basic

ther momentum,

parted to

the

up any

gathers

as we

fur¬

presently

the stimulus im¬

domestic

should continue to

sumer

about

If this expansion

industries

believe it will,

economy

than take

slackening in strictly
industries.;

con¬

The foregoing

will suffice to illustrate the point
that
is

far

as we can

foresee there

changes,
an

announce

office

the opening of

Wilkes-Barre

at 503

Bennett Building.

The

new

office

management
MacDermott.

under

the

Bruce

Robert

r."Vv/'

In addition to their present of¬
fices in Philadelphia and

in New

York, Buckley Brothers maintain
offices in Los

Angeles, Pittsburgh,

Hagerstown, Lewistown, Hanover,
San Diego

The

and Long Beach.

firm's

other

Exchange

nothing in the domestic busi¬

memberships are New York Curb

picture that would warrant

Exchange, Philadelphia Stock Ex¬

untoward fears regarding

change and Los Angeles Stock Ex¬

ness

any

business relapse that would have

change.

THE COMMERCIAL & FINANCIAL CHRONICLE

1292

Price Control
the most

abroad.

markets

main

the

changes have

necessary

been
made, although there are
glaring exceptions, as in the hide
market; a refusal by .OPA to raise
cattle hide prices despite sharp
advances abroad and the higher
cattle

has

here

prices

down

cut

drastic¬

of hides

movevment

the

leather and shoe
production, and left the situation
curtailed

ally,

chaotic."

■

lists

Letter

The

voiced

criticisms

the

various sectors of
community, as follows:
by

decision of the Price

"The

Board

control

while

the

ceilings

restore

leaving

and

grains

dairy

..products free of control, is being
criticized in many quarters.'
For
those who believe in the philosophy

control,

subordinate

all

who

would

considera¬

other

tions to

keeping prices down, the
decontrol of dairy products and

grains provided

On the other

sion.
•

control of meats

free

price

of the

hand, the

re-

discouraging

was

All

system.

branches

and livestock

meat

indus¬

tries, and many consumers as well,
have
protested strongly against
the

•

led

;

and

Decontrol Board's decisions based
on

ment

"In

for

abundant

these criti¬

cost

these

products, and

during

August.

ing.

New crop corn will be wide¬
ly available in another month to
six

and the price of $2
brings in the current
spot market will pass into history.
corn

market

corn

anchor to hold

will

down

act

very

con¬

siderable segment of the food cost
of living. March wheat futures at

$1.88

10 % cents under the old

are

ceiling."
The

policies
meat

Price

Decontrol,

Board's

regarding livestock and
are analyzed by the

prices

Letter,

follows:

"The

Price 7. Decontrol
Board
that
livestock
and
meat

had

risen

unreasonably
above June 30 ceilings
plus sub¬
sidies, and on that point its deci¬
to

with

the

recontrol

them

instruction

accorded

Congress

the

cable

law

to conform

was

that

—

and

regulation of

meats

practi¬

was

enforceable.

If demand is not held

supply

gress, and a bill was passed which
irrespective of its merits or de¬

the

merits

tioning, but

Decontrol

Board

super¬

this

only

other

prices,

logical

way

check it would be to reinstate

ra¬

the

suggests that

one

American

dure

people would
rationing under existing

en¬
con¬

ditions.

claimed,

and the appointments
generally praised.
The
common interest requires that its
decisions
be
accepted
in
good
spirit and that people work to¬
gether to make the best of the
program adopted.
"This principle should rule out
criticism based on special inter¬
ests or
mere
recalcitrance, and
limit discussion to objective ap¬
praisal of the probable effects of
the
decision
and
the
reasoning

forced

to it

meat

for

tities

desired, and that the func¬

which

and

ments

governed
as

Such

it.

made

that

state¬

by the

cost-

of-living committee of the Con¬
gress of Industrial Organizations
—that the decontrol of grains and
dairy products constituted 'a dis¬
mal failure to recognize the seTiousness of increasing
food

ther burden

inflation of

costs,' which 'will add
on

fur¬

the workers' bud¬

get' — make strange reading in
light of the language employed by
the Board.
Far from being insen¬
sitive

the

seriousness

food

price rises, the Board recontrolled
prices were
'unreasonable.'
It left dairy prod¬

meats mainly because

ucts uncontrolled because it found

The OPA view is that

rough

kind
by

the

in the

thus be dispensed

with.

this

unavailability is

But

what leads to the evasion of ceil¬

ings, the diversion of supplies into
inefficient and costly distribution
channels, the waste of valuable
products in black market slaught¬

ering, the inequities
law-aiding being the
the

butcher

enforcement

been

problem
heretofore has

third

would
with which every¬
agree, and it pointed to
the indisputable fact that prices
of new crop futures had not ad¬
vanced, but on the contrary had
dropped in most cases below June
30 ceilings.
This answers the CIO
will

pret

meaning

finding by the Board

products,

the

given

swollen

satisfied.

time,

demand

Were

June

can

prices
reasonable, from the viewpoint of
encouraging production?
Secretary Anderson's

View

answer

dicated

that

ceiling prices would
essentially to June

be rolled back

levels,

Mr. Anderson
that those prices

mended

creased

$1.40

recom¬

in¬

by $2.25 on cattle and
hogs. This recommenda¬

tion is binding.
He called atten¬
tion to the flood of
underweight
and

unfinished

market in

back,
prices

livestock

sent

anticipation of the roll¬
evidence

that

higher

needed to make feed¬

were

ing profitable and. encourage meat
production. It may be added that

hogs marketed

proportion

included.
feed lots

To the extent
were

sows

ab¬
was

that the

denuded and breed¬

ing stock reduced, the meat sup¬
ply already has been shortened.
Consumers

will

Meanwhile
been

the

distrust

sufferers.
OPA

has

increased, and the feeling
insufficiently concerned

that it is
with the

effect of prices

duction will be

pro¬

widespread.

"Whether the Secretary's action
will preserve order in distribution
and

inImports and

removed where

has

their

imports below

effect is

our

needs,

raised

ceilings on paper,
coffee, shellac, and goatskins, re¬
moved the ceilings on pepper and
other spices (also because they are
unimportant in living costs), and
expected

to take action
on
It has raised ceilings both

cocoa.

for

manufacturers

tors

many

and

cases

rea¬

amend¬

so.

"On

distribu¬

where

new

ing

the

other

hand, it is tak¬
stiff attitude toward appli¬

cations for decontrol.

It is formu¬

lating rigid standards, and the es¬
tablishment
by
the
Decontrol
Board of the

principle above dis¬
cussed, that goods must be abun¬

language, and it prompts serious

dant not by quantitative standards

questions.

but 'at reasonable prices,' arouses
concern in 'the industries as well

meaning into

(which
and

alone

the
can

demand), how
ever

prices'?

'reasonable
as meaning
below those

free

can

prices

those

costs,

in agriculture.

by orderly mar¬
suffer from any
conditions that create instability.
The
primary interest
of both,
however, is in the efficient func¬
tioning of the economic organiza¬
both

and

air conditioning equip-*
controls, valves and pipe
fittings. Controls have also been
suspended from an extensive list
or
industrial
machinery
and
equipment whose annual sales ex¬
ceed

have

been

their

recover

raised

They

vances.

the

man-hour

costs.

Costs

output of workers
over

vast

metals
of

are

covered in prices,

industrial

organization

prices on the
high as they
The farm group in the

that

average

may

going.

are

Bureau

farm
be

Statistics

daily

price index of basic commodities
reached its peak as long ago as
down

by the adjustment of corn
and by the

ceilings

reestablished
"

for
"

live¬

increase
the

were

Price

the

items

cost

used

are

suspended

Control

the

Act

Extension

1946, but other items (i.e., petrol¬
eum,

poultry, dairy products,

tobacco
moved

and

whole

re¬

by the terms of the Act

"Price
fresh

eggs,

grains)

remain free from control.

Labor

since

which

Evidently the principal rise in
the cost of living hereafter will be

suggest

group

stock and
meats, cottonseed, flax¬
seed, mixed grains and soybeans

fiency and the output of goods and
services will not reach maximum.

in ; processed
and manufactured
goods, for recent developments in
the
markets for farm
products

highest effi-

the

non-ferrous

"The Price Decontrol Board
has
re-established ceilings on
live¬

prod¬

not function at

ucts,
will

several

minerals and

purposes
and represent a small
part of the
business costs of the industries in
which they are used.

not merely on an average or over¬

all basis but for all needed

Supple-*
suspended

principally for industrial

Unless these higher in¬

dustrial cost

129

miscellaneous

living

companies reporting, labor
efficiency was lower than before
war.

and

expected

1,000

the

OPA

than half of

announce¬

metal products.
officials have declared that
suspension of such items is not

it should
made by the
and
Factory',

be;
one
survey,
magazine
'Mill

His

Order

control from

"Manufactured goods, however,
provided, subject to qualifications,
ever be
accomplished under such that manufacturers'
prices on any have not fully reflected the ad¬
a formula?
Is any jyice reason¬
in
raw
materials
and
product should equal the average vances
able which will not balance
sup¬
price received for it by typical wages and doubtless will show an
ply and demand?
producers in 1940, plus average upward tendency for some time.
If quantitative criteria are
increases in costs since. By all re¬ The main ^responsibility for the
ap¬
plied to determine whether sup¬ ports, the burden of costs
figures rising cost of manufactured goods
ply is short a different answer is and other information required falls on the wage and efficiency
obtained.
The available supply from petitioners under this
The
provi¬ factors above mentioned.
n

"Amendment

industry is lower than

showed that in

billion.

mentary

per

section

ment also said:

by wage ad¬
kept high be¬

are

that

out

of mechanical

terials,

producers in the economy

must

pointed

ment,

so that it can deliver to peo¬
the
maximum
benefits of
capable at any given

cause

Miley

equipment have
been
suspended from Price Control, in¬
cluding specific types of hard¬
ware, cast and sheet inetal ma-*

benefited

are

kets,

stock.

■» *».»«

of mis¬

building

Mr.

business. Both

amendment.

■

number

hundreds of items

decontrol

•

petroleum and

ducers want to do

'at

amendment

Control.

goods;
they also want employment. Pro¬

July 17, and now is being pulled

This

removal

Price

cellaneous items.

pro¬

to the new crop basis

reason¬

supplementary

trial machinery and
equipment,
foods, minerals, tobacco products,

want

Consumers

ducers.

and

case

supplement
variety
of
apparel
items, building materials, chem¬
icals, electrical equipment, indus¬

profits has not been
sufficiently stressed. Actually the
long-run
interest of consumers
with

product

authorizing

includes

tortionate

identical

particular

obtainedr from
official OPA Orders and from the
Federal Register. The

producers

living

and

avails

Office

suspension from
Information was

maintain stability and prevent ex¬

"OPA seems to be taking an
equally stiff position toward ap¬
plications under the Barkley-Taft

can

the

above that of consumers, and that
the need to restrain inflationary

supply
supply and

equate

balance
How

market

-interest

made

reference is given in each

say at this point
discussion has empha¬

the

been

public by the

classified

are

may

our

yet

the

Orders

"Some

rises

has

of Price Administration. The lists

factors:

"All

"Turning now to price moves
in other fields, OPA has acted
promptly to carry out the provi¬
sions of the Act where they are
concrete
and
mandatory. * Re¬
sponding to the requirement that
ceilings on imports must be raised

able

time.

the Act not conveyed
by its own
For

and consumers,
predicts that the prices
of manufactured goods will ad¬
vance
for
a
considerable time;
and that the responsibility there¬
for rests on wage and efficiency

sized

were

index

producers

the Bank

Manufactures

to limit

lists

guide to business men, Mr. Miley
stated, because no such classified

which it is

formulas in the Act require it to

guage of the Act the Board added
its own words, not included in the

covering articles dethrough June 15. The
specially compiled as a

controlled

Stressing the identity of inter¬

ple

Association

greatly responsible for
shortages.
It is imperative

such

it was

Aug. 30 by Thomas
Association
Secretary. Containing 22 pages,
the new
catalogue supplements
those previously
prepared by the
on

Jefferson Miley,

to break these bottlenecks."

tion,

Moves

announced

been

established in free marke.ts."

Price

Association of New
York,

they

single products often stops other
production.
Unrealistic
pricing

augment the supply despite
ceilings remains to be seen. If
so, the credit will go to the fact
that the prices set by him come
closer to the prices that would be
the

complete supplementary list
of more than 1,000 articles ex¬
empted or suspended from OPA
price
control
from
June : 15
through Aug. 20 is being issued
by the Commerce and
Industry

The importancce of the im¬
is that a shortage of

are

Exempted

provement

that

j
I

OPA Price Control

would incur a loss,
stronger position before
OPA than they had prior to June

est

Suspended from

like to

written in this Letter last

was

has

'■

Articles

month, 'the industries, where they
producing some products at a
loss or not producing them be¬
cause

sonable prices.' This is
ment which reads a

•

case,

are

30.'

authority to

any

said, however, it
considered true that,

must still be

exercised

his

uncertainties

many

cleared up as early as pos¬

have

this last question in the negative.
OPA had prematurely in¬

months.

"After this is

"Secretary of Agriculture An¬
derson, over OPA's protests, has

After

supported by gains in productive

sible.

that 'the supply of. meat has been

Act, 'in relation to demand

have

available to increase output of

are

demands, not

ity;,;vrRf^*^\*';:*/R'77■, ,>r

15% increase in output

which manufacturers will

breeding stock

raising'

report says OPA will inter¬
the i word
'substantial'
as

press

the

and will continue to be short.'
To
this statement based on the lan¬

able

adequate,

un¬

necessary if the terms of
the law were to be observed—was

found

harvest of the current crops

raised

—also

demand

one

manageable.

necessary.

of feed and

sources

established

reconsider

the

sufferers—

which

and

with

—

shop lines.

is interpreted

As to grains, the Board
that the supply after the

cur¬

can

substantially

situation

that prices balance

the

absorb the

without

costs, and the way to main*'
stability is to withhold fur

tain

needed products.

quan¬

tion tff prices as the means to

prices

the

tail demand

prices'

ceiling plus subsidy, and for no
reason; and it will watch

eration is

reasonable profit, un¬

substantial

output of equally
OPA has much
latitude under this provision. A

in-

Reestablish June 30
Were June 30 prices rea¬
sonable, in view of this inflated
buying power?
Another consid¬

rationing is en¬
unavailability of

everyone

specifically that prices had not
risen unreasonably above the June
other

and

prices.

within the

free

sede-OPA in deciding when to re¬
move
controls was generally ac¬

were

ther excessive wage

normal
—

limits

Price

reducing

among the

expressed in the Act.

"The Board also found

examination

represented the judgment
Establishment of the

OPA has desired

tended

kets, demand inevitably will ex¬
ceed supply, for demand is ex¬
panded by unnaturally low prices.

of Congress.

credit.

weeks,

which

increases

unit

tures down another 10 cents

$1.30,

efficiency and

wage

expansion of
production is practicable without

that

around

crease

cost

animal

of costly strikes.
The watf '
stop the spiral now is to in-*'

less

prices have continued easy, with
quotations on Chicago corn fu¬

This is 15 cents under the old ceil¬

effect, at the ex-*'

pense

required if prices
total current

average

are

basic

into

with this great supply is that
is swollen by the infla¬
tion of incomes and of money and

plus

increases

wage

put

were

such

even

there

largest in all our
The price of feed is the

demand

mand, but by stimulating produc¬
tion and increasing supply.
Re¬

people j must abide by
final
decisions,
submerge
their
differences, and cooperate in try¬
ing to make the decisions work.
The price controls had thorough
Con¬

cover

to be fed is the

point experienced opinion, outside
OPA, is entirely skeptical.
At
prices below those of free mar¬

adjustment
now

short

six

ciety someone must have the last
word, and that if society is to

debate

within

livestock

and

meat

reason

markets not only by curtailing de¬

cisms, the principle should be laid
down that in any organized so¬

function-

The

age.

relative to the number of animals

had to if recontrol

commenting

output of

livestock and dairy products, and
the prospective
supply of feeds

special interests, the Bank con-

tinues:

cost

living is hard to overestimate.
An abundant supply of corn and
other grains is the first require¬

sion

Pleading against criticism of the

record-breaking

found

and

the

ification in the law is that

whose importance in the

prices

black markets."

;

tor

controls

discouraged

disrupted distribution
to widespread evasions

tion,
:

had

more
important, OPA is
making a strict interpretation of
the qualifications. The main qual¬

'runaway

will leave

fact,

produc¬

reinstatement

which

wheat, corn and oats crops grown
this year will be a stabilizing fac¬

who put their faith in a

to those
■

"In

time to have been concerned
about
it, and to have averted it, was
when the excessive

even

prices of meat per person in the country
is officially estimated to be 18%
con¬
tinuous problem into 1947.'
above the five-year prewar aver¬
; 7;

Labor The

target.

unions and representatives of con¬
sumers' organizations have aimed
criticism at this part of the deci¬

that

grains

history.
De¬

livestocks, meats and oilseeds,

Policy Crucial for Business

statement

(Continued from page 1268)

Thursday> September 5, 194(3

sion will be onerous; and, what is

suspension

and

frozen

extended

from

definite.'

fish

Control

suspended

Aug.

certain

has

been

'In¬

also

been

removed from fresh

pears, table and juice grapes (ex¬

cept

Concord

grapes

sold

for

processing) and dried fruits."
The original list of articles
moved

from

Price

Control,

re¬

to¬

gether with supplements, is avail¬
able

to members

tion

without

stated.

Copies

may

non-members for
*

*'(

Ayte

-j#

# •,

of the

Associa¬

charge, Mr.

«V l "t &

Miley

be obtained by

$1.00.
irt*

*■X

^ ■'

;

uts^ vmwsrwstsibffl* MM

M'iiWi'il'lV1 Hr'ff fA

■;<■::;>:■ y[: [ ^4'^ ;,K'';''%;

**»<!!*•

[Volume 164

'"V
■-■ «

».•■'- :.;

...■:,.

:
:..

v,i*

'I'j;

.••'<<

' t-\'

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•

that

from page 1265)

contributory cause to the present
upswing of prices.
Now that's something

that calls for

bit of

Mr.

Leonard.

has

the

explaining,

What

connection

deposits

bank

Bank.

being retired are shortterm obligations held by commer¬
cial banks. The large amount of
these bank-held obligations is a
are

Mullins:

how

the

cured

cost of the

se¬

than one-half of

government

the

by borrowing. The

war

commercial banks

for

called on

were

50% of this amount. They

over

received

government

from the

Treasury, and in return
deposit account at their

created

bank

own

could

obligations

which the Treasury

draw.

Since

there

ernment

securities

can

send them to the Federal Reserve

from

posits.

This

increases

merical banks
On

the

Bank,

the

com-

with

the

increased

Federal

commercial

bank

can

posits to secure
curities; it then

customers.

ble

its

government

customers*

Mullins:

Let

don't

Banks

possi¬

securities

increase its

can

them

use

and then

reserves

basis

available

rein¬

funds

influences

exerting

upward pressure on prices.

Mullins: And
in debt

cial banks

the process?

reverses

check

This
mand

held

its debt by

can now pay

the

commercial

reduces

the

de¬

deposits, reduces the bankdebt, and therefore

federal

reduces

the

upward

venting

pressure

The

•'prices.

are

purchase

banks

retirement

debt

Savings

Bonds,

anti-inflation

because

prices.

How

those

two

high

causes

reconcile

you

conclusions,

Well,

Mr.

Mullins,

make

things. The purchasing

The

of
reduced,
and the purchasing power of the
government

has

power

been

increased

amount. The govern¬
then pay off a part of its

same

can

Mullins; What is gained by bor¬
rowing from individuals to pay
the banks?
Leonard: We have discussed how

purchase
the

Savings

funds

the

Bonds

individual

spend and increases the gov¬

ernment's
ernment

ability to spend.
from

borrowing

mercial

banks

different.

When

merely
count

credits
of

Gov¬

the

bank

buys

the

bank

funds,
deposit

the

it
ac¬

the

government. There
reduction
of
purchasing

in the hands of the banks,
yet there is increased purchasing
power

in the'hands of1 the

power

ernment.

Since

pendible

funds

surplus of

then

gov¬
ex¬

increase

Savings Bonds
to reduce the

indebtedness

Mullins:

Well,

and
gov¬

banks,.

Mr.

Leonard,
you've made it clear that we help
the government and ourselves by

continuing
Is

purchase

there

any

Savings
further ad¬

vantage

retiring as much as
possible of the bank-held public
debt?
Leonard:

there

is.

required
certain

the

This

Yes,
law

reserve

credit

reserve

to
their

action in

courageous

avoid

national

the

tures.

possible

all

postponing

Federal

govern¬

refuse to spend

and

construction

effective

local governments

for

expendi¬

government action

made

other

post-

—

bank

deposits, our insurance poli¬
bonds, and our future
prosperity.
We can
buy more
Savings Bonds so that the amount
of bank-held public debt can be
cies,-

our

reduced.

Lastly

price increases

state

uct

local

and

should

taxes

not

reduced.

lated

Surpluses accumu¬
will fight inflation and
source of funds when

now

provide a
prices are

and

lower

public

penditures desirable.
Mullins:

;

individuals

Mr
that

you say

do to assist

can

service

not

refuse

can

to,

whatever prod¬

sell. Self-denial

preserve

popular phrase, but the
sacrifices we have already made
way

C-

conclusion,

Leonard, what would
we

ex¬

make any but the most necessary

ponable needs. At the same time

Labor:

to continue retirement of the
debt is through sub¬

inflationary spiral

and the
consequent collapse.

Mullins:
creased

But,

our freedom and our
of life must be supplemented
self-denial for a short time

In this

longer.
tribute
more

way we

can con¬

stable

and

the

decreased expen¬

homes;

find

jobs,

and

clothe

that if

them.

Returning vet¬
that
they

erans

Leonard: Yes, they would, Mr.
Mullins.
The
administration
in

would not find jobs.
was fearful because

Washington

that

present

tax

hopeful

rates

will yield
originally es¬

than

revenue

timated. If

seems

production

not

they did

they would not pay
enough adequately to feed, house

ditures, wouldn't they ?

fearful

were

to labor's

ability

Management
of its

with

scores

labor

inated, the national

American people generally would
be if reconversion were impeded

ries.

unpopular.

tax

rates

and cause

are

ybu* think higher
probability?

They are certainly a
possibility, Mr. Mullins. In- his
message to Congress On the OPA,
the President suggested that if the

price control law

not

were

successful in

impatient the

public.

knew

business

Strikes

are

They inconvenience
hardship to the general
from

talking

executives

that

there

them who for va¬
not willing to
accept the principle of collective
bargaining—at least during the
early stages after the war's end.
were

Leonard:

new

how

result of strikes.

ance

Mullins:

executives, and
plants and facto¬

the

knew

occurs

Treasury surplus.

tions of

which

does

not

many of

rious

reasons

Some

told

security and say it will
happen again.
We must
counsel ;r together.
Management*
labor and the general public must
join with government in the rec¬
ognition by each of the responsi¬
bility which each has. If the col¬
lective bargaining process is to
work, it must be understood. Both
management and labor must re¬
smug

the right of each other at
bargaining table.
Collective

spect
the

bargaining does not mean collec¬
bludgeoning.
A conference

tive

were

frankly that they

over

labor

contract

calling

insinuations

not

threats

important and courageous act,
whether the Congress would
agree to higher tax rates is prob¬

last January because on that date

gain; The right of

the

lematical.

bank-held

Mullins: In

case

taxes

new

are

profits tax

eliminated.

was

Some told

that they wouldn't mind

frankly
delay

labor

arrived

to im¬

motives. Fair bargains are

proper

weren't interested in getting into

excess

dispute is not advanced by name-

production until after the first of

but

however,

mean,

This would be

were

sit back in any sense

can

holding prices within
limits, he would seek
rates.

ago

year

war.

That

that
of

business

present tax rates may bal¬
the budget; or even cause a

rapidly being filled by

are

geared to the production of muni¬

never

talked

workers

probably continue to rise. If this

peace

factories

tivity.

in¬

will

bargaining and have reached
point where the pipelines of

the

to maintain or increase its produc¬

leaders,

income

page 1266)

tive

doubts

willingness

terrupted by labor-management
disputes and if other obstacles to
higher production can be elim¬

result

to either side of the bar¬

fuse to work must

nized.

individual*

of individuals, to re¬

group

The

fully be

possession

recog¬

that

stantial and continuing budgetary

found to be necessary, what kind

in reconversion if, as

would be desirable?

price control might be eliminated.

use

On the other

gaining, mediation and' concilia¬

Mullins:

recent

years,

have heard some
talking
about
the
benefits of public debt and some
about its dangers. I suppose this
question
of
retiring
bank-held

Leonard,

economists

public debt
a

now

has created quite

controversy.
Leonard.

There

differences

substantial

are

opinion

about the
advantages of an annually balanced
budget. There is
on

bank-held

the

debt

retirement

followed

by
economists,
they
that reduction of the bank-

agree

held
to

debt is important if

use

all of

our

weapons

are

Mullins:

the group

whom

the

have found

point in

other

planners,"

othewise

spend

Therefore

the

would

the

Mr.

talk about the
tion

that, type

be¬

there's

"unequal distribu¬
Wouldn't

now.

taxation

aggravate

the situation?

have

the

;

higher

same

income

time. We

can¬

and

bor

fully explored. La¬

practice self-restraint and realize
that

deserve power

have done so,

have

sistent

been

with

which the
your

hard

incon¬

utterly

the

principles

war was

fore,

however,

for

fought. There¬

answer.

the

government chose

both must

management

riod.

American
ished the

those

who are willing to

sparingly.

use

democracy only

Probably

fervently

cher¬

right of free speech than,

did Mr. Justice Holmes yet it was
who

it-better than

I was in the
how

load

levied

were

the

addi¬

low

ex¬

income

easy

the

The

tax yields resulting from
against the higher income
groups could be applied on the
bank-held debt. They would have
the same effect in reducing the
base for credit expansion as funds

the

prospering, and

unfavorable

customers.

when

there is

over
supply of
causing general

obtain

be
new

higher tax rates. We
effects

extremely
taxes

are

our

and

all tired
business.

advantage

were

pointed

that

out

passage

that

Italian

people

along

1923

The

law.

with
the

first
road

labor

fact.

stresses

our

must

Admitting

and

strains

through which

however to reject higher taxes Jf retain

people

forget this fact. Manage¬

and

ment

American

not

forget

fully
the

is not

arts.

It rises out of the love of

which led them to destruction and

must not

all

the most

science.

totalitarian

the

together

harmony is

It is beyond the realm of

caused

take

difficult

living

art

and

peace

yeil

crowded theatre.

science.

the

The

how

know

impatience

same

strikes which

this

right did not permit one to

failed

forget, however, that it

this

despair.

sources.

probably

people

the

government

strikes.)-

could not

step

else.

anyone

it was for many persons to

groups.

levies

were

middle of it. I know

impatient

demand

was

months

seven

:yjth disputes $nd Relays. I "firp" in

suppress

that

controversy

inevitable if tire

not

attempted to force compul¬

plicated by the

will

easy

sion during this reconversion pe¬

would, and it is

business

power

tion have been

So, it would have been

The

when

be in the form' purchasing

opportunity to

foment strife.

when

will

bar¬

process

every

tion have been exhausted and the

not afford to have this question of
bank-held debt retirement com¬

until

possibilities of voluntary arbitra¬

reason

from other

un¬

in the situation an

that it < is probably- filled
desirable to have additional taxes know

for this

groups.at the

side, in certain

right, however, does not justify its

Leonard: Yes it

clusively

planners"

Leona'rd,

income"

be¬

"economic

income

result of it,

ions there were elements who saw

would

Mullins:

conservatives

ment credit.

lower

groups.

tax

war

amount.

taxes, should

tion of their current income. This

tional

this

new

primarily against those
who spend a relatively large por¬

Mr.

should

re¬

levied

have,

or
other grave
national emer¬
gencies. They believe that this
policy encourages private indus¬
try and strengthens the govern¬

The

taxes should be to

new

lieve that the public debt
be reduced except during

purposes

purchasing power in the
hands of individuals, who would

would

fhey

the

duce

common.

Yes,

The

of econ¬
call the

the

and

"economic
a

Leonard:

Mullins.

might

One

levied

in the

struggle against rising prices.

'•conservatives"

of the

disagreement

time. Whatever the
economic philosophy

present

political

Leonard:

Mr.

deposits

America.

prosperous

Long Range View

(Continued from
their

in¬

course,

would have

revenues

effect

same

of.

of wartime taxes, and know their

are

maintain

against

may

re¬

there is relatively little or no un¬
employment of men and machines,

banks

:''1'

responsibility

our

work

payments from this source.
Treasury
working
balance

approximately $11 billions on
August 1st. The really effective
way

ex¬

rehabilitation

difficult to

MullinS,

Well, Mr. Mullins,
indefinitely

the

lieve that debt policy should vary
with business
conditions. When

Mr.

Commercial

by reducing the
even more?

was

group,

ernment

larger

causes

desirable

the funds

re¬

continue

gov¬

us can help by
spending, so that the
pressure on prices can be lessened.
We can pay willingly the taxes
levied on us
can
pay them
knowing that they are necessary
to
safeguard the value of our

reducing

govern¬

higher tax

make

construction

are to

if the debt
substantially

Certainly

veterans, and for the loans

reasonable

omists

sales

diffi¬

necessary
for our
the
implementation

for

prices to
rise, government borrowing from
commercial banks is inflationary.
Borrowing from individuals is not.

Bonds.

Can't

Leonard:

com¬

fundamentally

government securities
does
not
surrender

debt

The

with

■

surpluses.

debt to the commercial banks.

reduces

were

Treasury balance
cannot

individual

The

made

influence

Mullins:

not then spend his money on other

use

not

larger.

Savings Bonds are sold to indi¬
viduals, and the individual can¬

inflation.

debt retirements

Leonard:

by the

could

important

Mr.

Leonard?

the

influence.

date

effect

retirements

debt

to
certainly

are

toward

tendency

the

can

Unfortunately the amount of the

tirement

the

inflationary

which increase the national debt;
then you say we should reduce

ment

pre¬

great enough to offset the present

Mullins: First you say we should

the

influence

The debt payments

commercial
anti

payments on the
debt then, Mr.

local

ment, but state and local govern¬
can
assist by reducing or

operating expenses. More
vigorous action is important if we
'

pur¬

rise in prices.

Leonard:

certainly

by orders to reduce

and

federal

Leonard,

banks.

amount

Leonard?

Mr.
and

state

Leonard:
rests

na¬

■!■'

about

ernments?

mental

and higher prices.

power

Mullins:
bank-held

Leonard: Yes, Mr. Mullins. The

Treasury

chasing

commer¬

effect

and

government

securities
originally obtained by the bank
through the creation of a deposit
The

purely

problem,

How

and

debt

Leonard: All of

this

bank-held

the

prevent higher prices? °

ordering postponement of certain

government

account.

the reduction

now

holdings by the

Mullins.

cently taken

Correct, Mr. Mullins.
are
pyramided on a

loans

our

Mullins:

can

duced. President Truman has

ex¬

crease

Leonard:

possible now
military and re¬

necessary to revive world trade.
But
expenditures
must
be
re¬

for

Bank

credit

their gov¬
ernment securities in cash, they
let the government have a check¬
ing account. After the bank gets
the

over

this

penditures

get this right.

pay

receipts

of the peace. Few criticize the

Mr.

defense

se¬

million to

other

expenditures?

whatever

them to in¬

uses

its reserves, making
further extension of

crease

unusual,

would deny the armed forces

one

The commercial bank creates de¬

mand deposits to the credit of the
U. S. Treasury rose from $1,451

forced

cult,

further expand the deposits on its
books to the credit of

Leonard:

higher tax'rates.
tional

ments

large

our

conversion

Reserve

excess

Mullins:

reserves.

basis
at

the

reduce

The

expenditures.

pand loans to other customers.

$12,363 million, an in¬
of over 700%. This in¬

debt.

public debt should be reduced by
a.
budgetary
surplus
resulting

gov¬

banks

our

of prices. We will lose
much more by inflation than by

public

situation

present

Bank and thus increase their de¬

corresponding reduction of pur¬
chasing power elsewhere, these
new expendible funds tended
to
cause an increase in prices.
Be¬
tween January 1942 and April 1946
member bank deposits rose from
$32 billions to $63 billions. De¬

the

bank-held

government in this effort to

they become necessary to stop the

that protagonists of long
standing
agree on this point. The bank-held

buy

deposits. After obtaining the

was

banks

the

1293

spiraling

price increases, they would reduce

Reserve

familiar with

commercial

reserves

The

commercial

Federal
now

government securities by creating

Treasury debt with rising prices?
Leonard:

the

the
are

bank-held

amount

'f •'■

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

"]'"l (Continued

itw

•

Public Debt Controls Prices

•

'•

the

times

went, we

did

system of free collec¬

man

for

his fellow

know the message

men.

to us in the first hour of

mas.
ance

was

We all

that was sung
Christ¬

of assur¬

message

which marked out for us the

path we must follow if we would
have
and

peace

will.

The

peace.

the promise
on

The

promise
now,

then,

is that of

earth to men of good
art

living

together

and, therefore the art of democ¬
racy

itself

art

which

can

only be perfected by men of good
will and

men

;of good will.

who wish to be men
,

THE COMMERCIAL & FINANCIAL

1294

without

Laboi's Achievements and

Governors of NYSE To Consider

Exchange and would enhance the
value of seats on the exchange. However, to me, the matter of per¬
missive
incorporation is no longer important. Millions of new
shares have come into the market and the Stock Exchange no longer
needs to go out looking for new business. I have found, too, that
the value of a seat is determined more by the general atmosphere
on Wall
Street .than by any other single factor. Whatever reasons
might have existed for incorporation in the past no longer exist.
Besides, incorporation would expose the business to the influence
of future demi-gods in government.
The Stock Exchange, as at
present constituted, operates under a unique charter and this free¬
dom which the Exchange has is of greater significance to the mem¬
bers of the Exchange than any possible advantages incorporation
business to the floor of the

new

and

have

bor

has

society.

.r '

erty is likewise our continuing responsibility. Workers today are
again
threatened
by
a
bitter
squeeze between rising prices and '
reduced
earnings.
Our
living
standards are in danger of being ;
economic

threatened

In short, the
liberty of all of us is
by greed and prof-

iteering..
malefactors

Those

who

bent

are

grea;t"
de- 1

upon

spoiling our economy and appro*- ;
priating its fruits must be check- *
ed.
The
legislative
spokesmen 1
the" N.A.M.

for

its

and

satellites

who wrecked OPA and who have

further

designs

agents of

informa¬

public

tion.

Already, through

Labor has enriched
heritage.
It has
veritable
bulwark

prices

secure

pressure

profits,

the

living

the

upon

All of our

polls.

people must join in a crusade-—
worker, the housewife, the
veteran—all of those whose mod¬
the

est needs for a decent life are be¬

must

profit-hungry

thwarted

ing

band

bread, milk and meat are being

lobbies

lars and cents, your

D. Roosevelt, and

together in a

difficult, too, for the Stock Ex¬ erected, a
taken from the mouths of Amer¬ people's movement to restore our
Corporations would be continually against tyranny.
ican children. Those of you who economic liberty, in a movement
dragging the Stock Exchange into court to prevent it from execut¬
work for wages
know what is for a better America.
Labor's Great Contributions
ing a disciplinary order and the likelihood is that the corporation
We must raise again the banner
happening, through your experi¬
Labor's
contributions
to
the
laws of the state would prevail over the Stock Exchange rules.
ence at the grocery stores.
In dol¬ of that great crusader, Franklin
change to discipline its members.

incorporation, banks would become members of the Ex¬

Under

change. In time, they would dominate the industry. In Europe gen¬
erally where banks can belong to exchanges, the banks run the
exchanges, holding all the important offices. In Berlin, the Stock
Exchange was a minor back office function of the banks.

BROKER No. 23

cause

rights

find

the

I! am try¬
it now, I

business

neither

but

one

have

any

permitted
us in this

real opinion on

the sub¬

Exchange most

ject at the present time. I am on the floor of the
of the time myself and I can't say that the subject
cussed much there, either.

has

dis¬

been

BROKER No. 24
Despite all the meetings that have been held on this subject,
despite all the thinking that has been done on it, I feel strongly that
the question has not yet been adequately explored. The tax advant¬
age is held up as the main argument for incorporation but I just
can't see that such an advantage exists.
-

The junior partners of the very large firms think that under
incorporation they would be less dependent upon the senior part¬
ners.
However, the junior partners can build up their interest in
the business now through the use of subordinate capital—limited

liability capital that, of course, has prior claim upon the
'of

the

firm.

partnership form of organization, however,

A weakness in the
is the fact that

firm

one

tions of

earnings

partners can not be bonded. Thus, the partners of any
protection against the mistakes or the indiscre¬

vancing
those

days when organized labor was a
hunted and oppressed group, the

definitely

opposed

incorporation.

permissive

personal

industry where
that

the

the second place,

130

relationships figure

prominently. The

wholly professional in character.

The limited

corporation would harm this relationship.

liability of the

ration

the

gle and its
of

the

would

buying

into

the

New

York

obvious

seats only to

that

many

be able to

over-the-counter firms

give the impression

having New York Stock Exchcange approval of their activities by
using the

of the Exchange in their letterheads?

name

Beside,

any

capital which

unwholesome capital since
and

authorities

conceivably might be

built

tax-free
where

it would be subject to all kinds of legal

interpretations. But I doubt
are

going to allow

any

merely by changing its

under

certain

it is

spirit of boastfulness that I say that we in the
CIO are particularly proud of our
a

contribution to the welfare of all

people"
advisedly, for only the zealots and
our

the

people.

fanatical

say

"all

much whether the tax

very

present firm to retain earnings

name

circumstances—for

corporation. I

instance,

holders, needing money, declare a dividend two

Where

can

see

stock¬

three years after

baiters

labor

can

public welfare.

Advance

toward

and

living, and

little

must

organize,
educate, we must vote.

must

learn that

Keynesian

over a year.

Economics

Congress' and OPA's failure to
control

prices
increased

year."

The report indicates

not

easy.

also

that cash dividends in April, 1946,
10 %

were

higher than in April,

1945.

City Bank, show that profits are
almost

those

double

first

the

porations will make 1946 the Best

competing
ceived

American

Meanwhile
are

spending their meager savings
ends meet.

make

workers

Federal Re¬

Board

serve

reports show that
American families in

1945 had

less

than $2,000

year

The top 50% of our fami¬

income.

at all.

the

war

1945 saved 97% of all

sav¬

This leaves the lower 50%

ings.

with only 3% of the savings. And

lowest

the

30%

had

savings

fects
on

Living

Standards

•

We need only recall the fate
Truman's
program

of
in
Congress—what happened

President
the 79th

minimum wages, social secur¬
ity, housing, FEPC, and OP A—to
to

the

renewed

aggres¬

sion of Big Business and the

NAM

against the living standards of the
people.
In order to

powerful

portray to you how
these interests are, I

might summarize their control of
American economy.
Five of America's largest finan¬
institutions
the
Morgan,

cial

—

worker

Each

entitled

Jhis
contribution to the production of
goods. Non-productive money by
as

that

measures

with .the

money

re¬

reduces the pur¬

wages

chasing power of this money and
thus unjustly deprives workers of
a

fair wage.

This conclusion also

applies to investors with fixed in¬
comes

based upon the

bonds,

notes,

ownership

and

preferred

stock.

The liquidation of the debt con¬
tracted

through

productive
ness

the

money

of non¬

use

depresses busi¬

Thus the stimu¬

conditions.

lation its issue creates will be off¬

ended, they can return to profit¬
Obviously, this study in con¬
eering and exploitation.
more
than its ef¬
: trast involves
Big Business' Attack

of the dollar.

Profit Year.

now

while

compensation

lies in

that

The savings-invest¬
expression will still be true
this is going on as it ex¬
presses monetary
relations irrerspective of the purchasing power
of exchange.

quarter, and 12% higher than dur¬
ing the same period of 1945,;
There is every indication that
as
full capacity approaches, cor¬

people are not
all vanquished. The forces of spe¬
cial
privilege are flushed with
power, arrogant in their wealth,

convinced

purchasing power of the dollar as
to reduce its value as a medium
ment

Reports for the second quarter
of 1946, according ts the National

47% of our

goals

ou r

security

Mellon, Rockefeller, DuPont and
deciding to withhold earnings—it would be possible to be required
a small
banking group control 31
to pay as much as a 111% tax on these earnings. If a firm needs of
the largest manufacturing cor¬
extra capital, let it go out and get another partner.
porations.
These large corpora¬

ings in

our

deny the contributions of the CIO
to the

understand

withholding earnings through the device of incorporation would be

rules

just

progress

free public school system
19th Century.

It is without

Exchange, then I ask why haven't these houses sought ad¬
Isn't

Century are
its strug¬

with

proud of its role in the creation

Stock

20th

identified

if it is true that with permissive incorpo¬

companies would seek admission

mittance before.

our

The enemies of the

place, the corporate form of organization is not suited to our

work

minimum of protec¬

forever

peace

BROKER No. 26

of your

have
liquidated
(Continued from page 1264) I
hourly earnings.
exploitation of women and chil¬ your
ous parts and the rights and ob¬
Living costs have increased around
dren, to reduce the work day from
ligations of its classes.
in
one
month, with, even
16 to 8 hours, to promote condi¬ 6%
In order to satisfy its functions
tions of work that are safe and greater increases in food costs.
money must be issued in the pro^
healthful.
Labor is proud of its
duction of goods and measure the
The Greed for Profits
pioneer role in the field of wel¬
value of the goods thus produced.
It is this greed for profits, this
fare legislation,, of its role in ad¬
refusal to stabilize our economy, Non-productive money, money is¬
vancing the cause of security for
sued
without producing
goods,
which
will ultimately kill the
the handicapped, the aged and the
derives its purchasing power bygoose which lays the golden egg.
underprivileged.
it away from the true
Producers of radios, cars, refriger¬ taking
I need not spell out the long list
money.
As the amount of non¬
ators, etc., cannot sell their prod¬
of legislative strides we have made
productive money i1 ssued in¬
ucts itomen - andwomenwho do
in the direction of a better econ¬
creases, the purchasing power of
not have the money to buy.
the unit of money, the dollar in
omy.
Laws such as the Social Se¬
Profits are up. A Department of
the United States, declines. Whilfe
curity Act, Federal Employers'
Commerce report indicates that
a certain amount of non-produc¬
Liability Act, Wage and Hour Act,
"over-all
corporate profits for tive money can be absorbed, its
and the Workmen's Compensation
1946 will be equal to any previous
Acts in the various States, are now
continued issue will so reduce the

vances

in the business probably favor incorporation be¬
cause it provides a certain guarantee of continuity to the organiza¬
tion With which they are affiliated—a continuity which is not to
be found in the partnership to any appreciable extent. It is my own
hope, however, that those who vote on this issue will consider it
from the broad viewpoint of the entire industry, keeping in mind
that it is the greatest good for the greatest number which should
be the paramount consideration in this matter.

in spite

factory workers have suffered an
over-all cut of 18% in real earn¬

bread

people. Labor
is proud that these legislative ad¬

men

$4.02,

rededicate ous~

selves to his ideals.

Wage increases. Add to this cut
in money earnings the rise in the
cost

women

their

loss

considered

difficult for us to make up our minds on this subject.
a purely selfish point
of view, our firm would have every¬
thing to gain from incorporation.
From the point of view Of the
best interests of the industry, however, the partnership is probably
best. There is no question but that the unlimited liability rule of the
partnership gives both the industry and the public the greatest pos¬
sible protection.

;

harsh
and
degrading.
Through labor's struggles protec¬
tive
legislation was enacted in
the various states to prevent the

tion for all of

From

were

another, v,

men,

earned

one

BROKER No. 25

which

not get

It is very

first

children

and

April, 1945, to $43.10 in June,, 1946,

distant

too

not

and

weekly wages

have been reduced from $47.12 in

ad¬

social progress.

our

dark

can

Young

counterpart

achievement of labor in

conditions

question at all. In fact,
ing to find out something about it. If I had to vote on
wouldn't know how to cast my ballot.
If incorporation is
and it works, our firm might try it. There's just two of
I have given no thought to the

their

civil
in

and

democracy

buffed

other

democratic

Incorporation would make it

seriously depressed."

standards of America must be re- "

to a

owe

men

'•/

nation

highest

the

performed

service which free
free

few

plan and without a pro- '/

struggle for economic lib¬

between

struggle for popular liberty.
vindicating its civil rights, la¬

These

Today labor stands almost alone
you and complete domi¬
by these powerful forces
who control the radio, press and

lasting satis¬

much

corporations.

of the American workers.

entire associa¬

Our

wealth

producers employ nearly one-third

the victories of labor in

American jobs are dependent on
the whims of absentee owners of

giant

tion with the labor movement has
me

and /

monopolies^

station in life.

Nothing

wear—are

grown, manufactured and sold by

people, whatever their occupation

our

anteed.

and

country* en¬

most sections of our

joyed not merely by workers who
struggled and sacrificed to safe¬
guard them but by all of our peo-

the

inability of
the junior partners to build up capital out of their earnings but
permissive incorporation is no solution to the problem. I can see
no tax
advantage from incorporation that can be absolutely guar¬
which is created by the

gobbling up the smaller
day.
products,
food,
meat,
clothing—the things you and I eat

by the
American work¬
rights are today, in

These

ers.

every

Dairy

given vitality

been

are

ones

bitter struggle of

faction

BROKER No. 22
recognize the problem

tions

organizations for mutual aid
benefit—all of these rights

form

given

-might give them.

(Continued from page 1266)

(Continued from page 1263)

gram.
v

Remaining Responsibilities

Incorporation Today

Permissive

1946

' Thursday, September 5,

CHRONICLE

set in the future

Non-productive

by its liquidation.
money is in fact

industry and the worker.

not money (receipt for goods) but
small busi¬ concealed tax demands, a method
nessman
who is being squeezed of taxation.
The method is un¬
to the wall, every white collar fair. It is most unjust to the wage
worker
living on a subsistence earning classes as it demands from
level, every farmer, is joined with them through higher prices^ a
on

The destiny

ours.

We
in

every

have

•.

made

advancing the

much

progress

of popular

cause

relatively unfair part of their irrcome.

There

;;-v

are

other

reasons

deficit

is not over. The struggle

And there are measures that

dom is

everlasting

for free¬
if it is

one

assure

spending
continuous

why

undesirable.

liberty but of course that struggle

full

to be preserved and made mean¬
ingful to all of us.

ment that are in accord

The struggle for social progress

New Economic Library,,

will

employ¬

with the

principles of our
economic system.
They are de¬
Social Security Structure
: scribed
in
the
aforementioned
Needs Overhauling
"A"'/:''
: '"■'■■■.v';
-Yf-i, book.

is not

over.

structure,
in need

for

Our Social Security

example,

of overhauling.

sadly

We face

dangerous national health hazards

mechanics

and

1270 Broadway,

New York City, N.

•

Y.,

Aug. 27, 1946.
JEROME LEVY.-

Yt.t

■

,\'V: Hi

^lji!'-" '

i/i'il'il'^i'•,

»#S Wat,

1295

Volume 164

THE COMMERCIAL & FINANCIAL

Number 4522

CHRONICLE
posal also, progress is slow. Gov¬
plants sold or leased

ernment war

AFL Head Discusses Labor

Forecasts Revival of Price

During Past and Coining

ISnpport for Farm Commodities

Year

prior to May 31 of this year ac¬
counted, on an original-cost basis,
for only one-eighth of the plants

expected eventually to be
of. About half of the
potentially surplus plants, account¬
ing for more than two-thirds. of

that

are

disposed

(Continued from page 1266)
ystem and for the inauguration of
It is part of our job to help the
shows determination. A variety of sup¬ weaker nations to
health
insurance,
but the government's financial invest¬
get back on national
mechanisms have already
clearly the great expansion' of port
their feet, and we will not count Congress failed us. We strove for ment, have not yet been declared
employed.
Recently
the
farm output during the last few been
the
enactment of a long-range Surplus.
the price too high if by these ef¬
announced
price support levels
years—far ; higher as compared
program
which would
"The process of contract termi¬
forts we serve the cause of last¬ housing
with prewar than in World War I. for many commodities have been
permit the construction of mil¬ nation has progressed more rap¬
above parity, ranging up to 130% ing world peace.
Although it is obvious that pro¬
lions of badly needed new homes idly, although it is by no means
Above
all
we
recognize the
duction of some farm commodi¬ of parity for milk and butterfat.
during the
next 10 years, . but completed. Work on more than ,
truth that war is the greatest en¬
ties, such as meat, is not currently Thus, a reduction in the support
Congress fell down on the job. On 90% of the number of contracts
prices
for
certain- commodities emy of mankind and that without the other hand, labor was forced
large enough to supply the de¬
in the 'V-J Day load'—contracts
be announced where
the enduring peace the strivings of to defend itself against a series of
mand at ceiling prices, it is also may
pending settlement on that date or
labor to raise the standard of life
true that purchases of wheat and previous support price was above
hostile moves by Congress which canceled
thereafter — had
been
and work of the nation's wage
livestock products for relief and 90% of parity. Although the law
would have undermined the free¬ completed
by the end of May,
earners can be of no avail.
other export purposes have been is not clear, it has been inter¬
dom
of American workers and 1946."
an
important market influence. preted to allow the Secretary to
handcuffed the trade union move¬
Workers Must Produce
production
adjustment
Factors in the supply-demand sit¬ impose
ment.
Fortunately, the worst of
During the early part of this
conditions related to changes in
uation vary considerably with the
these measures were defeated or
year, the members of the Ameri¬
needs.
This would
commodity, but it is well to take a production
vetoed.
can Federation of Labor won sub¬
look at the commitments for price make the position of the Steagall
In
the
year
ahead, organized
commodities comparable to that stantial increases in wage rates to
support and the means of imple¬
labor
must concentrate
greater
of the basic commodities.
With compensate them for the loss of
mentation, should these become
effort to win public opinion to its
The buying rate for
bankers'
pay
which they en¬
respect to price support/for com¬ overtime
necessary.
side. The trade union movement acceptances has been raised by
modities other.than the basic and joyed during the war production
The law now provides that for
drive.- However, the soaring cost enjoys the confidence of the Na¬ the Federal Reserve Bank of New
Steagall
commodities, the law
two years following the Jan. 1
of living has, to a large extent, tion's workers to a degree never York with the establishment of a
provides that lending and pur¬
after the President or the Con¬
before attained. This is evidenced minimum
rate of 1% effective *
chase operations shall be carried cancelled these gains unless prices
gress has declared the end of hos¬
out to the extent that funds for can be pushed back to their nor¬ by increasing memberships and Aug. 24. The previous rates had
tilities the government will sup¬
the results of collective bargain¬ been %% for 90 day paper; %%
such
operations
are
available, mal levels. This can only be ac¬
port prices to producers for basic
ing elections. The membership of for 120 day paper and 1% for 180
after taking into account the op¬ complished by greatly expanded
the American Federation of Labor
qrops at 90% of parity (92*/2% for
day bills.
The new rate is the
erations with respect to basic and production to end existing short¬
now stands at an all-time high of
cotton); that it will support prices
second upward revision since midSteagall
commodities and
the ages. It is, therefore, to the in¬
at not less than 90% of parity for
more than seven million.
July when % % was quoted on the
ability of producers to bring sup¬ terest of all American workers to
Steagall amendment commodities;
boost production by every means
90 day bills; %% for the 120 day
ply into line with demand.
Enemies of Labor
and that it will give price protec¬
paper, and 1% for 180 day bills
Another main feature of farm possible.
tion to other products on a com¬
We believe that "when the pub¬ said the "Wall Street Journal" of
Fortunately, the mass unemploy¬
lic generally understands the high
parable basis.
The basic com¬ price legislation is the marketing
Aug. 24, which went on to say: ;
Several laws ment which loomed threateningly goals sought by labor and the val¬
modities are those named in the agreement system.
"The
Reserve
Bank's
action
authorize the Secretary of Agri¬ after V-J Day failed to material¬
uable services rendered to the. followed an increase Thursday by
Agricultural Adjustment Act of
Despite the return of mil¬
culture to enter into marketing ize.
1938
as
amended
and
include
Nation by the trade union move¬ banks and dealers in acceptance .1
agreements with producers, proc¬ lions of members of the armed ment, it will reject the flood of
corn, wheat, cotton, tobacco, rice,
rates.
£
3
'
essors,
and distributors. These forces to civilian life, jobs are anti-labor propaganda which re¬
and.peanuts. The Steagall amend¬
"The Reserve Bank normally
plentiful. As production hits high
ment legislation, approved in 1941, agreements, in effect, regulate the
actionary* forces have poured out quotes a somewhat higher buying
gear, the gateways to more and
directed the Secretary of Agricul¬ market in such a way that pro¬
against
us.
Our enemies are rate .than that prevailing in the
ducers' prices are maintained at better employment opportunities
ture, whenever he found it neces¬
making a last-ditch fight to halt open market for acceptances to
desired levels.
These agreements will increase. Unless the tide of
the clock of progress and revive
sary to encourage the production
discourage member banks from
inflation breaks/ bounds &nd en
of certain crops, to support the frequently include provisions for
Fascism
in this country.
They discounting bills to obtain addi¬
affecting prices by the diversion gulfs our economy, the danger of are backed by vast wealth and
prices thereof and to give advance
a
postwar
depression will be abundant resources. Bu$ the truth tional funds.
notice should a downward adjust¬ of supplies to special channels,
"In setting the new minimum
•
such as relief consumption, in¬ avoided.
ment be necessary later.
The sowill
overcome
them.
And the rate of 1% the bank discontinued
dustrial utilization, and exports.
called Steagall commodities are
Legislative Program Defeated
quotations ? on
various
American people, endowed with specific
Funds are provided
by various
bogs, eggs, chickens (with certain
classes of bills as determined by
On- the legislative front, labor
laws for surplus removal activi¬
good common sense, will recog
exceptions) and turkeys, milk and
their length of maturity. Thus in
has attained little progress during
nize
and understand the
truth effect it served notice that it will
butterfat, dry peas and dry edible ties, including a provision that
the
year.
We had hoped for
beans of
certain varieties, soy 3Q % of annual customs receipts
accept a discount of not less than
broadening of our social security I before long.
shall be made available to the
beans, peanuts and flax seed for
1% but may seek more. ■=•
oil,
American-Egyptian
cotton, Secretary of Agriculture for this
"The new minimum rate of the
potatoes,
and sweet
potatoes.
bank is^ Vs point higher than the
purpose.
Among the numerous other agri¬
dealers' quotes on 90 day paper.
The commitment to support all
cultural commodities for which

(Continued from page 1271)

chart

accompanying

Rate for Bankers'

Acceptances Raised

No Cause for Pride,
Says Guaranty Trust Co,

Transition Accomplishments

prices have been an¬
are wool, naval stores,

Support
nounced

beets, sugar cane, certain
friuts and vegetables for process¬
sugar

commodities

farm

important

90%

of parity

(the support price

for

Steagall

commodities
of

parity)

may

exceed

others.

comparable price could involve a

Present

authorizes
of imple¬

legislation

three principal means
menting these price support com¬

mitments.

modities

For

the

basic

Commodity

the

Federal

difficult

Corporation is directed to make
available loans at the prescribed
fates, if producers have not dis¬
approved marketing quotas for
the
commodity.
Thus' growers
can store their surplus under gov¬

term

burden

Treasury as well as

problems

com¬

Credit

financial

tremendous

the

long-

adjustment of supply to de¬
The support prices, as

mand.

de¬

high¬
profitable to the farmer and

fined, are in most instances
ly
are

hence conducive to

sustained

Other factors
ernment loans, which are of the mentioned previously also tend to
non-recourse type.
If farmers do maintain farm
output, if not to
them, they can
government
take s the

high

production.

not wish to repay
let

the

pledged

crops

have no further

payment

liability.

it.

increase

and country,

Poten¬

tially, therefore, the loan program
is
a
purchase program.
When
acreage allotments and marketing

High prices in this

moreover,

domestic

well

the

reduce

the foreign

demand for American farm com¬
modities.

Much thought is being

outlined in given to alternative programs that
the Agricultural Adjustment Act would eliminate some of the dif¬
of 1938, loans at the prescribed
ficulties :;;of
maintaining
farm
quotas are in effect, as

rates are available

only to cooper¬

ating farmers, as are the conserva¬

prices

uneconomically

needs than they have been

in the

1269)

found it

impossible to grant with¬
to compen¬

out some assurance as

at a past.

ing, barley, grain sorghums, and

90%

(Continued from page

"Bankers

are

used

get

seller draws a

the

The

draft on the buy¬
amount involved

er's bank for the

entered the satory price adjustments,
for payment on a certain date.
"The resulting wave, of strikes
it
The bank stamps the draft 'ac¬
quickly attained a magnitude that
was believed that the most critical
guaranteeing the pay¬
forced
a
hasty revision of the cepted,'
problem to be faced would be that
ment.
Accepted drafts have a
of maintaining employment. With government's wage-price policy—
ready sale to banks and others."
a revision that was 'too little and
war
production about to drop
too late.'
'
swiftly, and with millions of men
"Although the great nation-wide
and women about to be discharged
from the armed services, it seemed strikes are over for the time be¬ Stark Succeeds Gottesman
impossible that industry
could ing, innumerable scattered dis¬ In N. Y. OPA Post
provide enough jobs soon enough putes have continued to hamper
Sidney S. Stark has been ap¬
The ag¬
to keep the labor force occupied. the industrial transition.
pointed Chief Enforcement Attor¬
gregate effect of the disturbances
Happily, these fears have not been
ney of the New York district of
borne
out.
The unemployment cannot be precisely measured, but the Office of Price Administration,
it has unquestionably been to de¬
peak," according to official esti¬
it was announced on Aug. 29 by
mates, was reached in March at lay reconversion in some vitally David J. Williams, District Direc¬
2.71 million; and by May the figure important industries for a period
tor, according to the New York
had declined to 2.31 million.
As of months. The National Associa¬ "Times" of Aug. 30, whose advices
tion
of
Manufacturers
recently
a
result, total* wage and salary
continue, further said:
payments
declined only
about estimated that more than 100 mil¬
"Mr. Stark will take over on
lion man-days of labor had been
13% between the second quarter
Sept. 3 the duties of Callman Got¬
strikes since 'V-J
of 1945 and the first quarter of lost through
tesman,
who is resigning from
Day' and that basic industries
this year.
OPA to resume the private prac¬
were from 21 to 73% behind their
tice Of law.
Wage-Price Policy and Industrial 1946 production schedules. v> ,,
"Mr.
"When the country

reconversion period a year ago,

Stark,

Disputes

high

Governmental Transition

\ "In other
directions, the fears
payments. Marketing quotas levels and yet that would at the
"The
government's transition
proposed by the Agricultural same time return to the farmer an expressed at the beginning of the from war to peace is still far from
transition period have proved only
Adjustment Administration and income commensurate with that
too well warranted.
The wage- being completed. The fiscal year
can be put into effect only if two1946
ended on June 30 with a
obtained in other economic pur¬ price " policy
announced by the
thirds or more of the producers
President at the end of the war budget deficit of about $22 bil¬
v(
who vote in a referendum are in suits.
and the President's labor-manage¬ lion, resulting from expenditures
favor.
These
devices
are
the
of $65 billion and receipts of $43
ment conference on industrial re¬
means on which the government
billion.
War expenditures alone
lations failed to provide a foun¬
Frederic Cammann Dead
may in the future have to rely
were
running at the annual rate
dation for the industrial harmony
in reducing the
loan funds re¬
Frederic A. Cammann, retired that was recognized as essential of $22 billion during the last quar¬
quired and therefore in alleviat¬
New York investment broker, died to
quick reconversion.
Instead, ter of the fiscal year. Early fore¬
ing the. burden on the Treasury.
casts for the current fiscal period
in Mercer Hospital, Trenton, N. government officials and agencies
For
Steagall commodities the
issued
statements
concerning indicate another deficit, and ef¬
J. after a brief illness. Mr. Cam¬
Secretary of Agriculture is au¬
forts now seem to be concentrated
wage-price relationships that were
thorized to support prices through mann in the past was a partner
on
achieving a balance in 1947interpreted by labor organizations
a
commodity loan, purchase, or
make 1948.
in Tappin, Rose & Cammann and as a virtual invitation to
other operation/It leaves the par¬
"In the matter of surplus dis¬
•/; ~ wage demands which management
ticular method for administrative Rose, Cammann & Co.

tion
are

•

acceptances

sellers of merchandise to
money for their goods before
buyers are ready to pay.

been with the
was

District

38 years old, has
OPA since 1942. He

Enforcement Chief at

Trenton, N. J., before
New York as head of
State

trial
tion.

coming to
the five-

regional apparel and indus¬
materials enforcement sec¬
More recently

he has been

deputy regional enforcement ex¬
ecutive here.
Mr. Stark received
his A.B. and LL.B. degrees at the
University of Pennsylvania.
"As District Enforcement Chief,
Mr.

Stark

will supervise

all liti¬

gation against price and rationing
violators in this city and the coun¬
ties of Nassau, Suffolk, Westches¬
ter, Putnam,
Rockland."

Dutchess, Orange

and

myifv :a l*rt' f tj il i''

1w [ *'m

1296

THE
which

may

COMMERCIAL & FINANCIAL
CHRONICLE
about

come

longer consider import¬
through better business or ant) it
signalled a new phase.
through new: developments, It now
points to a possible de¬
i.e., inventions, that will be cline to around the
180

Tomorrow's

Markets

level,

translated

Walter

Thursday, September 5, 1946

into better busi¬ and no
certainty of holding
We all know that there
there.
Action is similar to

ness.

Whyte

(Continued from page 1275)

huge backlog of potential market of 1937. If
(Special to The Financial
Chronicle)
you want
demand in existance
Ray¬
today— to know what happened then, f PORTLAND,: MAINE
mond
B. Dunn and George R.
that should mean
bigger prof¬ look it up and draw

=By WALTER WHYTE;

your own

its and

higher stock markets. analogy* \
have been
taught
during a period of inllaIt's not

Market break through all
pre¬
vious
points
of
resistance

that

Meehan'

•

to pull away

easy

changes picture radically. tion common stocks must in¬ from a market that
has
Good stocks may be
bought evitably go higher. So we changed its complexion, but
back cheaper. Bad stocks are have the two requisities necthat is exactly what I'm ad¬
e s s a r
no
bargain at any price.
y for
an
advancing vising you to do. I think
market.
So why,
you ask, there will be a
y Now
that the market is
rally but I
does the market
down they're all
go down?
don't know how far or how
coming out
*
*
of

woodwork

with

planations and theories.
most

widely accepted theory

is that the Russians

ing the

are

peace and that

inevitable.

shak¬

war

know
ture

little

about

the fu¬

market.

Warehouses

of New

This

drives

clamoring for
a

who

son

I have

a war.

likely to be
However, I re¬

pulled into it. y
call, and it doesn't take
feats of
war

any

memory, that the last

was

anything but bear¬

ish; neither

the

was

fore that.

war
*

be¬

able

for

the

home

equally confused. Stocks go
in anticipation of earnings

NEW YORK 5, N. Y.

[The

that

bust

marks
era

the

boom

longer

of the future.

market

When

York

Commodity
Chicago

last

already committed. Last

Thursday the stock tape took
on

color I didn't like.

Friday its
er

course was no

long¬
Having broken

in doubt.

New

Orleans
And

Securities

ican
of

Cotton

Exchange
Exchanges

CHICAGO

DETROIT

N. Y.
PITTSBURGH

GENEVA. SWITZERLAND

FRANCISCO,

CALIF. —
Carrithers
is
now

Wilson, Johnson & Iliggins,
Montgomery Street.
to The Financial Chronicle)

tutor

for

Japan.;
as

only

the

ST.

one

several

this

literature.

effect

contained

were

Co., Boatmen's
was

formerly
Stifel, Nico-

3 (Special to The Financial' Chronicle)
ST.

LOUIS,

serve

tutor

The

Financial

Building.

for

ST.

The

Financial

Chronicle)

PETERSBURG,

Jack

Evans

with

Lynch, Pierce, Fenner &
Central Avenue. * "

The

attends

understanding

sons.,of

Merrill

Beane,

and

Members

Chicago Board of Trade

Teletype NY 1-928

Private Wires to
Principal Offices
San Francisco

Monterey

—

Santa Barbara

Oakland
Fresno

—

Sacramento

that

she

Prince

and

Heagerty

SAN

and

affiliated
&

Co.,

with

Florida

American tutor for the Crown

Prince/ appeared in
April 18, page 2135.

our

issue
..

notice

receipt

that

the

Ex¬

authoritative

has

company

gone :

bankruptcy or receivership
proceedings, the New York Stock
Exchange sends out a ticker no¬
tice to this effect. Beginning
Sept.

9, the ticker symbol for stocks and
bonds of such companies will be
changed by the addition of the
preliminary letter 'Q.' This pre¬
fix

'Q' will indicate that the f is-*;
suing company (or the company
assuming the issue) has been re¬
ported to the New York- Stock
Exchange to be in receivership or
proceedings for reorgani¬
zation, arrangement or liquidation
under Federal statutes relating to
bankruptcy or to the relief of
debtors. It will not be used in

nection

with

for

new

the

ticker

securities

plan

con¬

symbol

issued

pursu¬

securities unaffected by

reorganization or ar¬
rangement which has been con¬

firmed,

though

even

proceedings

have not yet been finally termin¬
ated.

Stock of Central Railroad of

mon

New

Jersey/ heretofore
NJC, will appear

The

Financial

tape
Stock

heretofore

The

Childs

the

Com¬

Company,

designated CDI, will
be
designated QCDI.;

hereafter
The

QNJC.

Common

Stock

EQ,

designated
companies

Equitable

will

hereafter
QEQ.
Bonds

be
of

undergoing
proceed¬
ings of like nature will be treated
in

similar

'Q'

manner

Adopting

Chronicle)

FRANCISCO, CALIF.

desig¬

nated as

prefix

and also
—

added to the staff of BacOn

Co.,

256

(Special

SAN

William

the

by adding the
symbol."

usual

same

beginning

Montgomery

to The

Financial

Chronicle)

FRANCISCO,
II.

Street.

CALIF.—

Slocumb

has

been

York

procedure,

Sept. 9, the
Excchange has
it too, will pre¬
on

The

Street.

tion;
5%

(Special

SAN

to The

Financial

Chronicle)

FRANCISCO,

CALIF.—

M. C.

Cozzens, Henry S. Miller and
Robert S. Scalley have become af¬
filiated with Dean Witter &
Co.,

Financial

SAVANNAH, GA.

—

Chronicle)

Richard M.

Stone is with Southern Securities

Corp.

and

States

certificates
bonds

bond

issues

due

Corpora¬
deposit for

of
1927

ferred

stock

Childs

Company;

and various bond issues of the In¬

ternational Power Securities Cor¬

poration.
the

prefix

'Q'

issuing

will

indicate

company,

The

SOUTHERN

Financial

Chronicle)

PINES,:

C.¬

the

company assuming the issue, hag
been reported to the New York

Curb Exchange as being in
ceivership or in proceedings
reorganization,
arrangement
_

(Special

Electric

of Chicago
Railways Company; the 7% pre¬

that
to The

Curb

and issues coming
ruling will be the va-,

stock

"The

Montgomery Street.

the

"Companies
under this

Central

Montgomery

announcement

Exchange also said in part:

rious

300

that

bankruptcy
proceedings with the letter "Q."

added to the staff of First Califor¬

Company,c

Curb

announced

nia

(Special

Reference to a request by Em¬
peror Hirohito made to members
of the American
Education Mis¬
sion, then at Tokyo, to recommend

The

change, by John C;- Korn, Acting
Secretary, further said:

cede the symbols of all companies
in
receivership
or

nations

statistical

New

Longfellow
thoughts and

war

and

newspaper

been

as¬

knew

emphasis will be

world without

FLA. —R.

F.
Kelly,
William
F.
Ja-, Osgood, P. R. Palmer, Emil Pikich,
and. Van Syckle Trefethen have

has

agencies to designate securities of
companies in this category by a
special symbol in their quotation

Alfred

pri¬

working together for peace."
Mrs. Vining, who will be the
Crown
Prince's
only American
tuotor, will leave for Japan in the

Chronicle)

American
The

Financial

the

fan.

New York 5, N. Y.

COrtlandt 7-4150

said

Crown

companies, supplementing
practice on the part

Office Building, heretofore desig¬

•

Theatre Building.

English.

ideals.

14 Wall Street

Vining
the

The

Craig Rowland

present

School,

PETERSBURG,

(Special

Prince

Peers'

vate, ■institution <for

Washington

Schwabacher & Co.

(Special

ST.

Crown
the

adopting this practice
efforts in keeping

its

present

nated

quite awed, but happy,
hope I can contribute to the

and
world."
;

"is

listed

the

mon:

F L A.—

568

feel

peace

further

ticker
(Special

responsibility," she said today.
She is vacationing at a farm here.
"I

pro¬

"As an example of how this des¬
ignation will be made,, the Com¬

Chronicle)

:i! ST.
PAUL, MINN. — Cecil J.
Manahan is with Feromack Secu¬
rities Corp., Pioneer

the

and I

being in

bankruptcy

(Special

by her selection by the State De¬
to

New

security holders and the investing
public informed of the status of

MO.—Kenneth W.
Kuhiman has joined the staff of
Herrick, Waddell & Co., Inc., 418
Locust Street.

lowing: *;;v i
Mrs. Vining, a widow and who
hails from Philadelphia and is the
author of children's
books, was
happy, but somewhat astonished,
partment

ant

take the fol¬

Building.

for many years with
laus & Co., Inc.

Press
account
from
New London, Conn., published in
the New York
"Times," of Aug.

28, from which

Bank

tutors for

Advices

MO.—Franklin H.
has become affiliated with

Goldman, Sachs

the 12-year-old Crown Prince and
that she would teach English and

American

LOUIS,

White

Mrs. Vining was re¬
saying that she Would

the

to be in

(Special to The Financial Chronicle)

the Amer¬
Crown fPrince

reached," she
will
teach him the stories
every Amer¬
ican school child
knows; stories of

(Associate)

Exchange Bldg.

SAN

study
he
explained. "I

York Stock
Exchange
New York Curb
Exchange

NEW YORK 4,

Washington

that

"Upon

;

ST. LOUIS, MO. —Thomas II.
Kelley has become associated with

Mrs. Elizabeth Gray Vining has

;

into
(Special to The Financial Chronicle)

Fusz-Schmelzle & Co., Boatmen's
Bank Building.
He was previ¬
ously with J. WV Brady & Co.

"I cannot say just now where I
will begin until I find out
just
what
stage
of

New

N. Y. Cotton

presented as

securities

ceedings will be preceded by the
letter "Q." The New York Stock
Exchange announced on Aug. 27,

advice

;

some

Pacific Coast
Exchanges

Exchange
Exchange

Trade

Hill

300

sumed

..—jr.. •.:. ;,.fv

Exchange
Exchange,
Inc.

other

are

pan's nobility.

Orders Executed

with

Sept.

Exchange

receivership

Montgomery

been chosen by the State Depart¬

week's

Cotton

Board

Members

New

Co.,

—

with

They

■

H. Hentz & Co.
Curb

CALIF.

Whyte

views

ment at

1850

Stock

York Stock

tables."

Chronicle)

For Hirohito's Son

Pacific Coast

York

Truman

Mrs.

York

Financial

Graham

■

significance

I wrote

New

Richards

(Special

It is here.

through the 195 figure (which

New

The

American Woman Tutor

and

DIgby 4-2727

Established

FRANCISCO,

Street.

Crown Prince. She is going to
writing the mar¬
Japan, her first visit to that coun¬
ket
looked
okay. I didn't try, filled with zeal for her
unex¬
know if it would be
okay a pected assignment. J
few days later.
The market
"It is a great opportunity and
were

Exports—Imports—Futures

(Special

SAN

those of the author only,} ■

gradually becoming apparent.
sfi

Building.

Chronicle.

night¬

has become associated with Kirch&
Arnold, Inc., Insurance

Monday,

ticker symbols for
companies reported

II. Cutts

ofer

expressed in this
article do not necessarily at any
time coincide with those of thi

ported

gave its own answer, but we

SUGAR

Beginning

;• -

RALEIGH, N. C.—Fred

Thursday.
—Walter

market

column I said that
up to the
moment of

99 WALL
STREET

Building.

Bankrupt Firms

Chronicle)

(Special

losses, but
be better than

may

More next

LAMBORN & CO.

now

fantastic. The spiral of
prices Associated

Its

Financial

mean

are

buy
slowly but surely be¬
ing drained off for necessities.
The. price structure isvnow

♦

Domestically the picture

The

Kingdon

for the

cars

may

losses

the money with which to
them is

mare

Pacific Northwest
Company, Wil¬
cox

losses later.

export
By a process of trade.
; They wanted to buy
reasoning that is mysterious the
cars themselves.
But as¬
to me a war is
interpreted as
suming that cars were avail¬
bearish.
God knows
arms.

I'm not

Show Symbols for

PORTLAND,
ORE. — Leonard
W. Andrus has joined the staff
of

Jersey at 76. On rally
buying price get out.

back to

force of

Exchange Tickers to I i

Chronicle)

Wilcox, U. S. Bank Building.
(Special

public Steel 36 and Standard

are

with

—

being courted.
The po¬
tential American
: How the
buyer is be¬
whole thing will
disregarded either
work out, whether it will be ing
through intent or accident. A
across a conference table or
few days
ago we read that an
a
battlefield, I don't pretend auto
company | had • • labor
to
know.
But
already the trouble because
its workers
calamity howlers are scream¬
refused- to put
right hand
ing that it will be through
*

Financial

will

jammed and foreign markets

this writer.

connected

Co., 191 Middle St.

fo The Financial Chronicle) "
foreign pic¬ now have Bethlehem' at 107
RALEIGH, N. C.
Paul
O.
disregard it as a (I'm taking median prices on Latham
is with First Securities
market factor.
But the do¬ all r an
g e s), International Corporation, 111 Corcoran Street,
mestic angle is
a
different
Paper 46, J ones & Laughlin Durham, N. C.
story It's no secret that we 47, N. Y.
Shipbuilding 18, He(Special to The Financial Chronicle)
r
have

ture

inflation.
There
are
My pipelines are all snafued
two factors,
so
however,: which
nothing comes through,
either from
Moscow, Wash- nullify its effects.
ington or the; Paris y Peace
Despite the tremendous de¬
Conference. But I'll venture
mand for
a
goods, producers
guess that the boys who are
are
not
producing for the
shouting off their mouths

yy;

Because I don't know what
to maker of the

The

long it will go.
On rally I
suggest % liquidating.
You

ex¬

now

PORTLAND, ORE. — Bruce
Kelly has joined the staff of Sloan

the

are

Timberlake
(Special

also

'Jv;

have been added to the staff of
J. II. Goddard & Co. of Boston.'

—

re-*

for
or

liquidation under Federal statutes

relating to bankruptcy

James W. Causey and Anton Reese
relief of debtors."

..
..

-v'•h

...

the

1297

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

[Volume 164

Now

Securities

Registration

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

•

132,740

Offering—Price

writers.

($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four selling stockholders
filed

Only preferred being offered. No under¬
$10 a -share.
Proceeds for

sion privilege.

(10/21)

Cuba, N. Y.

./ Acme Electric Corp.,
June

purchasing

plates,

royalties,

authors'

dies,

rights, etc.

;

is.*

publishing

(9/16)

Manufacturing Co.

from the sale of 63,860 shares.
Company
sale of 20,000 war¬
rants for common stock to underwriters at an aggregate
also will receive proceeds from the

one

will be used

•

Finishing

Metal

; American

Grand Rapids,

Co.,

Mich.

publicly. Proceeds—For plant expansion and to increase
working capital.
'

Aug. 26

of notification) 42,000 shares ($1 par)
(restricted).
No underwriter.
39,309
$1 a share; 2,700 shares to

(letter

common

with

proceeds,

dividends.

Rights expire Sept. 12. Unsubscribed shares will be sold

Of the net proceeds ($292,940)1 $50,000
current bank loans; about $20,000
will be used for machinery and equipment, and the re¬
mainder for working capital.
,

Proceeds—Net

amendment.

funds, will be used to redeem $20,000,000 of 7%
cumulative preferred stock at $115 a share plus accrued

preferred share for each seven common shares held.

price of $200..

to pay

(10/1-4)^

other

July 26 filed 359,373 shares ($100 par) cumulative con¬
vertible preferred stock is being offered for subscription
to common stockholders of record Aug. 26 at the rate of

the proceeds

New York

July 18 filed 100,000 shares each of $100 par prior pre-i
ferred stock and $100 par convertible second preferred
stock. Underwriting—Union Securities Corp., New York.
Price

Allis-Chalmers

Locomotive Co.,

American

stock

shares to be sold for cash at
•

Acme-Hamilton Mfg. Corp.,

All Metal Products Co., Wyandotte, Mich.
be issued to pay for services rendered prior to incorpora¬
i.Vri
Aug. 14 (letter of notification) 13,000 shares of class Bl; tion.^ Proceeds for working capital.
common on behalf of Mary E. Reberdy.
Offering price,
•
American Paper Goods Co., Kensington, Conn.
$5.50 a share. Underwriter—Andrew C. Reid & Co.,

Trenton, N. J. (9/17)

5%' cumulative preferred
shares ($1 par) common
Underwriters—G. L. Ohrstrom & Co. and S. R.

filed 50,000 shares
($20 par) and 82,000

Aug.

stock

stock.

Detroit, Mich.

Offering—Company is offering the

Livingstone & Co.

Proceeds—To

selling stock¬

to the

holder.

$11.50 a share for the common. Proceeds—Company will
apply the proceeds from the sale of the preferred stock
to fully discharge secured demand notes, mortgage notes
and partial discharge of debenture indebtedness.
Busi¬
ness—Principal products are the manufacture of con¬

Aug. 16 filed 199,101 shares (no par) common. Under¬
writing—No underwriting. Offering—Shares will be of¬

veyor

belting, tubing and hose.

American Brake Shoe Co.,

New York

debtedness.

American Time

fered for subscription to common stockholders in the
ratio of one addition share for each four shares held.

Unsubscribed shares will be

Ill

improvement program,

Watervliet,<N. Y»

August 19 (letter of notification) 5,745 shares of com¬
mon
stock (no par). Shares are being offered by the
company to stockholders of record Sept. 5 at $10 per
share, in ratio of one new share for each share held.
Eights expire Sept. 30. Proceeds for expansion of build¬

;■

7 7- 7 7,7;:

!•:;

7v;-7.

....

7.-...;.:.;7.7

common.

Corp., Bedford, Mass.

tooling.

Inc., N. Y«

Broadcasting Co.,

27 filed 950,000 shares ($1 par) common stock.
Underwriter—Dillon, Read & Co. Inc., New York. Offer¬
ing—A maximum of 100,000 shares may be sold by com¬

June

sults of competitive bidding are known. Underwriters—
be filed by amendment.
Probable bidders include

Co., Chicago. Offering—The debentures will be of¬
publicly.^ The common shares will be issuable upon
the exercise of stock purchase warrants for purchase of
common stock at $2 a share above the bid price of such
common on the effective date of the registration.
Com¬

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.
Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds (ta
be sold privately) are to be issued to acquire certain
assets of American Water Works & Electric, liquidate

capital.

ac¬

quire radio station WXYZ, to construct broadcast trans¬
working

mitter for station KGO at San Francisco and for

July 8 filed 196,500 units comprising 196,500 shares of

pany.
use

ing—Price

rants

Price—Debentures at 100. Proceeds—Company will
$1,025,000 of proceeds of debs, for payment of an
indebtedness to Bankers Trust Co., New York. Balance,
estimated at $373,680, will be added to working capital.
'

,>,,l

r-,v

«'<•

.'a

{''<

•

</~fy

a- Z'd*

i-i " /)"

Transport Corp., Now York
June 19 filed 400,000 shares ($1 par) common stock.
Underwriters—None. Price $3 per share. Proceeds—Of
the proceed^ company will use $60,000 to repay a bank
loan, about $500,000 for new equipment and $250,000 for
ground installations at various points in the United

voting
voting
1

common

of voting common

Proceeds—Net proceeds esti¬
will be used to pay a mortgage on
plant, pay accounts payable, purchase equipment, for
building alterations and working capital.

(
"

f\'_'

*
_

*Vi '' *'«,

,v'\i

* J?

Atr Express Internat'l Agency/ Inc., New York
July 22 filed 125,000 shares of 50-cent par common.
Underwriters—Newburger & Hano; Kobbe, Gearhart &
Co., and Burnham & Co., all of New York.
Offering—
The shares will be offered publicly at $6 a share.
Pro¬
ceeds—Estimated net proceeds of $656,250 will be added
general funds.

American Coils

writers—None.

Aug. 27 (letter of notification) 2,000 shares of $100 par
6% cumulative convertible preferred and 500 shares (no
par) Class A common. Offering—Price $100 a preferred
share and $95 a common share.
No underwriting. For

cash

and to increase

obligations

funds.

Price

ment.

York

(9/10)

July 26 filed $1,700,000 of 5% sinking fund debentures,
due 1962, and 120,000 shares of 5 %% cum. conv. pre¬
ferred stock ($25).
Underwriting—Herrick, Waddell &
Co., Inc.
Price—Debentures 99, preferred stock, $25 a
share.
Proceeds—To purchase on or before Sept 17 all
issued and outstanding capital stocks of David G. Evans

American Fabricators, Inc.,

•

/:•/;• vi.i#.-. J..U- ' y:

-Wi,

"■

*■'-V '

•

•:

.'•••'• ■' -*

-Vu'"\

St ■

■

'■■■

J>.V

;/ A y/•!£'?'» \ > V./;

±A

Algonquin Publishing Co., Inc., New York

shares of 5%
and 25,000 shares of
of which 10,000 share are reserved for conver¬

Aug. 28 (letter of notification)
cumulative convertible preferred
common,

10,000

Louisville, Ky.

(letter of notification) $100,000 of 15-year con¬
debentures, due 1961. Offering—Price $1,000 a
No underwriting.
For additional working capital.

Aug. 5

vertible
unit.

American

Empire Biscuit Co.;1 San Jose Packing Co.;
Supply Co., and for working capi¬

tal. '
{

the

initially will be added to general funds, however,

Food

Frozen

Plains, N. Y.

and James A. Harper
"

Proceeds—Net proceeds

amendment.

Lockers,

White

Inc.,

Aug. 22 (letter of notification) 5,000 shares of 6% con¬
vertible preferred stock ($10 par) and 70,000 shares ($1

,-ri■», 1;.*

SPECIALISTS

—

v«w "

Offering—To the public in units of

;

/wood-working .machinery
Business—Manufacture;.: and

and

for

sale

phonographs and radio-phonograph
Arkansas

Western

working
AC-DC

capital.

electric

combinations.

Gas Co.

shares of common stock (par $5).

filed 33,639

Underwriters—Rauscher, Pierce & Co. Inc., and
Rollins & Sons Inc.,

E. H.

Offering—Stock will be offered to

Shares are being sold
,

■

CORPORATION

■INC.

48 WALL ST., NEW

Chicago

•

Boston

•

V Cincinnati

Corporate and Municipal
Securities

Kidder, Peabody

'
•

■

YORK 5, N. Y.

•

St. Louis

•

Founded 1865

HAnover 2-2727

Philadelphia s Pittsburgh

•

San Francisco

;

Members oj the

Cleveland
.

77;;/

v:'7;'.7 77.7;

C. J. DEVINE& CO.

FIRST BOSTON

☆

share of pre¬
a share for

preferred and $1 a share for common. Proceeds—To re¬
tire bank loans of approximately $100,000, to purchase

State and Municipal Bonds

The

one

Prices—$6

ferred and one share of common.

Underwriters and Distributors

United States Government Securities
/

{ V„. .1':

'
(Continued on page 1298)

7-;,'-'h-' '-.Vr;

•

'.A

☆

Public Financing

New York • Pittsburgh
and other cities

Proceeds—Proceeds to go to
' ,V
.
' 1

Golan.

Of Ansley Radio Corp., Trenton, N. J. (9/17)
i
Aug. 29 filed 70,000 shares of Class A cumulative con¬
vertible preferred stock ($5 par) and 120,000 shares of
common
(50c par).
Underwriter—Amos Treat & Co.

■

•

of company, who

President

Golan,

selling stockholder.

and inventories.

—

Boston

the public.
par) common. "No underwriters.
Offering—Prices $10
Price by amendment.
a share for preferred and $2 a share for common.
Pro¬ I
by six stockholders.
ceeds to pay off notes and loans, and for working capital

!☆"

Corporate and

Louis

will be retained by

June 5

7.y

Mo.

($1 par) common.
Under¬
Offering—Shares being registered are

$432,000 of notes of the company. About;
60,184 shares will be offered to stockholders of the com¬
pany, including remaining shareholders of Cook's Impe¬
rial Wine Co., at $3.60 each and at the rate of 12 new
shares for each 26 held.
The remaining 59,816 shares

V..'"'*.1

it. J.

12 filed 30,00 shares ($100 par) cumulative pre¬
ferred stock. Underwriters—To be supplied by amend¬
Aug.

company

Airline Foods Corp. of New

Coffee Co.;

Co., Clifton,

cellation

the

American Colortype

Co., St. Louis,

acquired them last June 5 upon the surrender for can¬

Co>V Newark, N. J.

payment of certain

issue of April 4.
Wine

American

held
•

see

July 24 filed 120,000 shares

anticipates it will use the funds for its building
and expansion program.

,,•,

details

For

$6 per unit.

;

mated at $1,179,000

Air Cargo

States.

subsidiaries,

Ohio Cities Water

Co., of Pittsburgh

stock ($1 par) and 589,500 shares of non¬
stock ($1 par), each unit consisting of
and 3 shares of non-voting
common.,. Underwriters—None—the company intends to
distribute its common stock directly to the public. Offer¬

will sell warrants for 25,000 common shares to the
The remaining war¬
will be sold to officers and employees of the com¬

Community Water Service Co. and
Corp., and provide cash working capi¬
tal.
Common stock is to be offered initially for cash
to common stockholders of parent and to public holders
of preferred stocks of Community and Ohio in exchange
for their shares.
Stock not subscribed or issued under
exchange offers are to be sold for cash to underwriters.
two

American Cladmetals

Inc., N. Y.

2,343,105 shares of common (par $5) plus
additional number determinable only after the re¬

March 30 filed

fered

underwriters at 10 cents a warrant.

American Water Works Co.,

American

amendment. Proceeds—To prepay notes payable to

pany

York. For additional

& Co., Inc., New

inventory, manufacturing facilities and machinery and

7, S7

-77; v.

Aug. 22 filed $1,500,000 of 5% sinking fund debentures,
due 1961, and 50,000 shares
($1 par) common stock.
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
&

(letter of notification) 60,000 share (10 par)
Offering price, $2 a share. Underwriters —

Kobbe Gearhart

pany to persons, firms, or corporations with whom the
corporation had network affiliation agreements on March
31.
The remainder will be offered publicly.
Price by

ings and facilities.

Corp., Springfield, Mass.

: (9/9-13)

August 19

sold to other persons in¬

officers and employees.
Price, $35 a share.
Proceeds—Net proceeds, estimated at $6,915,285, will be
used to defray part of the cost of its plant expansion and
cluding

Adirondack Foundries & Steel, Inc.,

Aerovox

common.

ceeds

■

(letter of notification) 6,000 shares ($25 par)
Underwriter, none.
Price—$48 a share. Pro¬
forworking capital and payment of bank in¬

Aug. 27

shares of preferred, while the 82,000 shares of
common are being sold for the account of certain stock-.
holders.
Prices—$20 a share for the preferred, and

50,000

New York
.

Co.

New York and Boston Stock Exchanges
Boston

Philadelphia

Chicago

THE COMMERCIAL & FINANCIAL CHRONICLE

1298

(Continued from page 1297)
Arkansas

Western

Gas

Brooklyn

<VGv;G,

filed

93,430

Underwriter—E.

Co;'''.2

Rollins

present common stockholders at $10 a share in the'

shares will be sold to underwriters.
time of

Unsubscribed

each 4 shares held.

ratio of 3 shares for

Proceeds—At

same

Brown & Bigelow,

first mortgage sinking- fund
Funds from the sale of the
$840,000
3%% bonds and $210,000 serial promissory note.
It will
also deposit $600,000 with the trustee under the inden¬
ture securing the first mortgage bonds.
Remaining pro¬
ceeds will be added to general funds.

$1,500,000

bonds, 3% series, due 1966.

and

shares (no par)

cumulative first

preference stock, Series A; 300,000 shares of convertible
second preference stock, Series A, and 1,355,240 shares
common stock
(par $5).
Underwriter—Kuhn, Loeb &

not issued in exchange will be sold
to underwriters. The 300,000 shares of second preference
of first preference

GGG- >;

publicly.

G'k'ky

Blyth & Co., Inc.; The First Boston
Ripley & Co.
Offertae-Stock is being sold by
Gas and Electric r Co., parent, of California.
Bids Rejected—Standard Gas & Electric Co.. rejected
man

bids for the purchase of the stock

will be offered

and

ceeds—Net

Ben-Hur

Products,

Los Angeles

Inc.,

at $4.50
ing 120,000
Price $4.50

ers

July

common.

ceeds to

Bell,

& Co., Inc., Chicago

the

by amendment.
Lehman

Public

Service

Co.,
corporation.
Glore,

merged

Possible

bidders:

Brothers-Lazard

Freres

Co.

First Boston Corp. (jointly). Price by amend¬
utility holding company..
/

Central Soya Co., Inc., Port Wayne, Ind. (9/17)
August 21 .filed $4,000,000 3% sinking fund debentures.
Due

1966, and 90,000 shares (no par) common. Under¬
—
Glore Forgan & Co., Chicago. Offering —

writers

will

stockholders

be
at

publicly.

offered

rate

for

Common

subscription

one

for

each

common

; held. Unsubscribed shares will be sold to underwriters.
Price by amendment. Proceeds—Of net

com¬

pany will use $2,132,000 exclusive of accrued interest,
G for redemption of
outstanding 314% sinking fund deben-

stock

(par $1).
Offer¬ f tures, Due 1951. And $858,500 exclusive of accrued interest, for payment of bank loans. Balance will be added
ing—Shares will be offered to public at 75 cents a share.
to working capital.
*
Proceeds—Net proceeds, estimated at $300,000, will be
used for mining operations. > Business—Exploring for
Central Steel & Wire Co., Chicago
ore.
common

Lw>

'**«

.V,

August 19 (letter of notification)

common stock

(par $5)
public of $100,000;
3,846 shares at. an estimated price on behalf of Mandel
Aug. 28 (letter of notification) 140 shares of preferred
and 4,200 shares of common.
Offering—Price $1,000 a G Lowensteine, President of the company, of $26 a share.
Offering price at market. Underwriter—Paul H. Davis
preferred share and $10 a common share.
No under¬
& Co. will act as broker in distribution of the stock from
writing.
The company will receive proceeds from the
sale of common and from the sale of 80 shares of the ; time to time. Offering temporarily postponed.
preferred.
The remaining shares of preferred are being
sold by stockholders.
Century Electric Co., St. Louis, Mo.
The company will use its pro¬
•

•.

Liquors, Inc., Omaha, Neb.

Capitol

not

exceed

total

price

to the

;

8,742 shares ($5 par)
Price—$12.50 a share. Pro¬
increase working capital. '

(Philip)

American

Blyth & Co., Inc., Stone & Webster Securities

May 31 filed 500,000 shares of

Public

Underwriters—Sabiston-Hughes, Ltd., Toronto.

No underwriter.

Blum

American

proceeds

(letter of notification)

(9/5)

ceeds

150,000 shares

July 26 filed

for

Co.;

initially

Candego Mines, Ltd., Montreal, Canada

Greensboro, N. C.

Inc.,

Smith, Barney & Co.-Harriman, Ripley & Co.

Debentures

share.

Proceeds—$75,000 is earmarked for pur¬
machinery and equipment, and tools, jigs, dies
fixtures; balance will be available for corporate
a

such shares

consummation: of

upon

issuer

ment. Business—Public

Ltd., Toronto

purposes.

y/-;G;..G■■■

stock, ($100 par) and 100,000 shares ($1 par) common
Co., Inc., and H. M.
Byllesby and Co. Offering—Shares are issued and out¬
standing and were purchased from the company by the
underwriters at $96.50 a share for the preferred- and
$10.70 a share for the common.
They will be offered to
the public by the underwriters.
Price, $100 a share for
the preferred and $12.50 a share for the common.

&
(jointly);
(jointly);
Corp/ and
Forgan

and

July 29 filed 20,000 shares of 4.25% cumulative preferred

Blue

Underwriters

the

issuer and

exchanged

stock. /. Underwriters—F. S. Yantis &

•

shares of the
not

into

Co., to provide funds for retiring the preference

chase of

Black, Si vails & Bryson, Inc., Kansas City, Mo.

Aug.

Service

merger

stockholders of Admiral Corp.

common

(Del.)
Prospectus will be Issued
public invitation for sealed bids

with the

.will vbe constituted

same

proposed

150,000

will be offered to

Proceeds—To redeem old debentures and

-k

filed

connection

shares ($1 par) common stock.
Underwriter—Dempsey & Co. Offering—Stock initially

reduce bank loans.
:

& South West. Corp.,
in

being offered by the company.
Proceeds—Company's share to pay

Canadian Admiral Corp.

°f bank loa" and for construc-

for the purchase of a sufficient number

Government, and for additional working capital.

(with detachable common stock warrants attached), due
June 1, 1966. Underwriter—P. W. Brooks & Co., of New
York. Offering—$263,500 5% debentures offered in ex¬
change for like amount of 5% convertible debentures
at 100 with premium of 5% on or before Sept. 3. Unex¬
changed plus balance of issue to public through under¬

share.

per

•

are

share.

$28.50

-Central ^ South West Utilities Co.
(9/18) ,.;
Aug, 30 filed Its ($5, par) capital stock. Company's name
is to be changed by post effective amendment to Central

The remain¬

own account.

3 TnZZSl,*

::-'uo" purG/Ses P y

renegotiation refund in amount of $180,000 to the U. S.

<9/9)|G|

July 11 filed $1,000,000 of 5% sinking fund debentures

writers at 100.

issued

not

Unsubscribed shares, to the extent of 1.500
shares, will
be1 offered to officers, directors and
employees. Any re¬
maining shares may be sold for cash to underwriters.

Co., Grand Haven, Mich.

share for their

proceeds from sale of shares

rate of one share for each four held at

July 29 filed 220,000 shares ($1 par) common stock. Un¬
derwriters—Kobbe, Gearhart & Co., Inc.
Offering—Of
the shares registered, 100,000 are issued and outstanding
and will be sold to the underwriters by three stockhold¬

stockholders will be offered to employees
Price—$10 a share. Proceeds—The company
estimates it will use $300,000 of the proceeds to purchase
additional space and equipment, and $350,000 for manu¬
facturing facilities. The balance will be added to work¬
ing capital.
*
'
'
of company.

de¬

are

Central Louisiana Etec. Co., Inc., Alexandria, La.
July 24 filed 20,000 shares ($10 par) common stock.
Underwriting—Not underwritten. Offering—Shares are
offered for subscription to common stockholders at the

(9/16-20)

for by common

stock

exchange will be used to redeem old preferred at $110
share and accrued dividends.

satisfactory. Blyth & Co., Inc., and First Boston Corp.
$28.33 a share, and Harriman Ripley & Co. bid
Stock will again be put up for sale
when market conditions improve;

shares not subscribed

basis to

bid of

any

share for share exchange

posited for exchange the number of shares to be ex¬
changed will be pro rated. Shares of new preferred not
issued in exchange will be sold to underwriters.
Pro¬

un¬

than 150,000 shares of old
preferred

The remaining 2,734 shares

Springfield,

holders of its old preferred stock other than the Middle
West Corp. which holds 38,564 shares of such stock.
If

of $24,031 a share.

Camfield Mfg.

& Co., Inc.; Smith, Barney & Co.,
White, Weld & Co.;
Glore, Forgan & Co.; Lehman Brothers and Lazard,
Freres & Co. (jointly).
Offering—New preferred stock

elude

August 16 filed 151,367 shares (no par) common. Under¬
writers—No underwriting. Offering—Of the total, 148,633
shares will be offered for subscription to common stock¬
holders in ratio of one share for each two shares held.

Savings Bank, Chicago, bal¬

pre¬
Underwriter—'ro be determined by com¬
petitive bidding. Probable bidders include Dillon, Read

''G ■'

Standard

two

(par $1).
Curtis, Chi¬

ferred stock.

May 24 filed 312,000 shares of common stock (no par),

June 25

Jackson

Aug.'14 filed 150,000 shares ($i00 par) cumulative

Stock will be sold through competitive bidding.Under¬
writers—Names by amendment.
Probable bidders in-

Philadelphia

Artloom Corp.,

St. Paul

•GG'^v/GG'' G/GG GGG GGGg/GG G G

-v

stock

common

Central Illinois Public Service Co.,
III.

California Oregon Power Co.

The 1,355,240 shares of
common
will be offered for subscription to common
stockholders of the company in the ratio of one-third
of a new share for each common share held.
Unsub¬
scribed shares of common will be purchased- by the
underwriters.
Price—Public offering prices by amend¬
ment.
Proceeds—Net proceeds will be used to retire all
unexchanged shares of $6 prior stock and to redeem its
outstanding 7% preferred stock. Temporarily postponed.
stock will be offered

working capital.

ance

public offering. Price—Preferred $103.50 a
share; common $26.50 a share. Proceeds—Net proceeds to
the company will be used to redeem unexchanged shares
of 6% preferred at 110% arid for • increasing general
corporate funds.
1
•

preferred stock at the rate of 1.4 shares of first prefer¬
ence stock for each share of $6 prior preferred.
Shares

cago and Harris Trust and

for

writers

off $3,000,000 loan from First National Bank Chi¬

pay

outstanding capital stock of Consolidated Printing Ink
Co., Quality Park Box Co., Inc., and John Beissel Co.,
which will become subsidiaries. In addition, stockholders
of the company are selling 322,521 shares to the under¬

Co., New York.
Offering—The 350,000 shares of first
preference stock will be offered in exchange to holders
of its 532,996 shares of $6 cumulative convertible prior

and 175,000

cago. Offering—The stocks will be offered to the public
at prices to be supplied by amendment.
Proceeds—To

ing—19,079 preferred shares will be offered to 6% pre¬
ferred stock on a share for share exchange basis. Shares
not issued in exchange plus 15,921 additional will be
offered to the public. Of the total common, the company
is selling 67,500 shares to underwriters for public offer¬
ing and 55,177 shares are to be offered in exchange for

Co., Chicago

July 12 filed 350,000

share,

Underwriter—Paine,Webber,

July 19 filed 35,000 shares of 4^% ($100 par) cumulative
preferred stock and 427,558 shares ($1 par) common
stock. Underwriters—Reynolds & Co., New York. Offer-:

bonds and common stock will be used, to retire

Armour

,vv. '*•

stock offering, company intends to sell

common

institutions

Union Gas Co*

May 3 filed 70,000 shares of cumulative preferred stock
($100 par). Underwriters—To be filed by amendment*;
Bids Rejected—Company July 23 rejected two bids re¬
ceived for the stock.
Blyth & Co., Inc., and F. S. Mose- <
ley & Co. and associates submitted a bid of 100.06 for a
4.30% dividend. Harriman Ripley & Co. and Mellon
Securities Corp. bid 100.779 for a 4.40% dividend.
In¬
definitely postponed.

($5 par) common stock.
Sons, Inc., New York.
Offering—Company is offering the stock for subscription

Aug.

(N. Y.)

.Thursday,' September 5; 1946

additional

Aug. 7 (letter of notification)

working capital.

($1 par)) common stock.
Underwriters—F. S. Yantis & Co., Inc., and H. M. Bylles¬
by and Co., Inc. Price—$17 a share. Of the above 15,000

shares will be

25,941 shares of $10
a share.

par

June 24 filed 400,000 shares of common stock.

reserved for

a limited time for possible
and employees of company and subsid¬
iaries. Proceeds—Payment on bank loans and notes and

sale to officers

for

working capital.

.■

•

.»

•

■

Briggs & Stratton Corp., Milwaukee

Aug. 9 filed 76,000 shares (no par) capital stock. Under¬
writers—A. G. Becker & Co., Inc., Chicago" Price by
Proceeds—Shares

amendment.
holders.

h";

are

being sold by stock¬

G.vG ,/G.- /;vk:,

_;..v •... -■

•<

•

iJM.

Carscor Porcupine Gold

...

Mines, Ltd., of Toronto,

UnderCincinnati (O.) Gas & Electric Co. (9/lO-li)
writer—Registrant will supply name of an American G July 25 filed 2,040,000 shares
($8.50 par) common stock.
underwriter by post-effective amendment.
Offering—
Underwriters—Blyth & Co., Inc., and The First Boston
To the public at $1 a share in Canadian funds.' Proceeds
Corp. Offering—Shares are offered for subscription to
—For a variety of purposes in connection with explora¬
common stockholders of Columbia Gas &
Electric Corp.
tion, sinking of shafts, diamond drilling and working
of record Aug. 22 at the rate of one share for
each six
capital.
I..; v.•
'
'
held. Rights, will, expire Sept. 9. Unsubscribed shares
,,,

will be sold to underwriters.

Central Electric & Gas Co., Sioux Falls, S. D.

May 29 filed 35,000 shares of $2 cumulative preferred
stock, series A (no par), but with a stated value of $50 a

Price $26 per share. Pro¬
ceeds—Columbia Gas & Electric Corp. will receive
pro¬
ceeds.

G^''v:y- '-V- ^

The Marine Midland Trust Company
Industrial, Public Utility, Railroad
Municipal Securities

'
4

•

Members New York Stock

NEW

YORK

PHILADELPHIA

ALBANY

PITTSBURGH

Agent

TRENTON

■

Public

Distributors

•

Municipal—Railroad
"G"";'
Utility—-Ind[astrial Securities

Trustee

•

Direct centact with Markka ia

principal financial cantera.

ONE HUNDRED TWENTY BROADWAY
'

•

INDIANAPOLIS

NEW YORK 15,

\ *

WASHINGTON

•

N. Y/

E. H. Rollins & Sons
G,'-

RECTOR 2-2200
-""'Vr

-n

Exchange

CHICAGO

Registrar

•

Underwriters

G^G;.;:.G v-;--;::G - of GGG .G'

Hemphill, Noyes CS. Co.
«■

OF NEW YORK

Transfer
4

underwriting.

Ontario

UNDERWRITERS—DISTRIBUTORS—DEALERS

and

Offering—Price minimum of $10
For working capital.

common.

'•

•.

\'-

New Torfc
•

•

♦

■

•

• *

•

Incorporated

40 Wall Street, New York 5, N. Y.

Boston

Philadelphia

Chicago

•

San Francisco'

■

t::*v

v. •

:,«rr; rn ^

12931

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4522

'Volume 164

Consolidated

(9/23)
\Sept: 2 filed 150,000 shares 5fe% cumulative convertible
preferred stock (par $5). Underwriting:—Maxwell, Mar¬
shall & Co., Los Angeles. Price—$5.25 a share. Proceeds
—Net proceeds, estimated at $650,000, will be used to
repay a $90,000 bank loan, to construct a factory and
office building at San Gabriel, Calif., at a cost of about
$250,000, and to purchase additional equipment, esti¬
mated at $250,000.
The balance will be added to work¬
ing capital. Business — Production/[of adding machine
Clary Multiplier Corp., Los Angeles

multiplier and other products.

V'V

'i: i

Climax

Si 4

-'v\

■' '•*

: &

•

'4 t; 'h

'l-*

■

Consumers Power Co.,

convertible cumulative

Aug. 28'filed'150,000-'shares 5%'

•

indebtedness to
Corp., purchase equipment and real
to pay company's

Proceeds of preferred

Finance

General

ceed to the company, in the [amount ,o£ $20,000,000. y

^estate-and for additional working-capital.
vjri

;

,•>

<^:V

')v.<

J#*

such

for purchase of
provide for

the exercise of options

.company upon

pany's manufacturing

Price—Options already issued

stock.

the. purchase of the capital stock at $16.66% a
proceeds—To.be added to general funds.

ceeds will be used to pay a

with other

N. Y. ( 9/16-27)

Car

Chicago,

Co.,

III.

Dictaphone Corp., New York
July 25 filed 65,347 shares (no par) common stock. Un¬
derwriter—Merrill Lynch, Pierce, Fenner & Beane, New
York.
Offering—Stock will be offered to stockholders

plants, acquisition of additional
for additional working capital

at rate

of one-half share

shares will be

scribed

Temporarily postponed.

for each share held.

Unsub¬

Price by

underwriters.

sold to

Proceeds—To be

amendment.

Continental-United Industries Co., Inc., N. Y.

added

to
,

general funds.

Drayer-Hanson, Inc., Los Angeles (9/23-27)

Aug. 12 filed 80,529 shares ($1 par) class A stock, con¬
vertible into common stock (par $1).
Underwriters—

Maxwell, Marshall & Co., Los Angeles. Price—To public
$10.25 a share. % Proceeds—Net proceeds, estimated at
$694,761, will be used to pay off loans and accounts pay¬
able. [

and balance to working capital.

•

Motor

60,000 shares of common stock (par $2).
Shares are being sold by certain stockholders. Underwrit¬
ers—Hallgarten & Co. Offering—Price based on market.
For details see issue of April 4.

;

Aug/: 2 filed 80,000 shares of cumulative' sinking fund
preferred slock {$25 par) and 350,000 shares ($1 par)
common.
Underwriters—W. C. Langley & Co. [and
Aronson, Hall & Co. Price by amendment.
Proceeds—
$1,510.,833; to* repay notes and obligations.; $1,600,000 to
/purchase
S . Treasury savings notes to fund to that
extent cuirent liability t>f; company for /Federal taxes,

August 15- filed 300,000 shares ($1 par)" common sidckV
[Underwriters—Emanuel, Deetjen & Co., New-.York. Price
by amendment. Proceeds—Company will receive pro¬
ceeds from the. sale of 150,000 shares and Generoso Pope,
i President of company, who is selling the remaining 150,»
IjOOO shares will receive proceeds from these shares. The
company will use its proceeds for payment of mortgage
frotes, open account indebtedness and for purchase of
^additional. equipment. Any balance will be , added to

Diamond
March 29 filed

requirements.

The remainder,

bank loan.

funds, will be used to expand a drilling and

exploration program. Indefinitely postponed.

tools and facilities; and

share,

•

-Colonial Sand & Stone Co., Inc.,

Derby Oil Co., Wichita, Kans.

July 8 filed 250,000 shares 4%% cumulative convertible
preferred stock, Series A ($50 par). Underwriters—Van
Alstyne, Noel & Co.
Offering—Price by amendment.
Proceeds—For rearrangement and expansion of the com¬

60,000 shares of capital stock'(par $1).
Underwriters—No underwriters.
Offering—The shares
will-be-offered to executives and key employees of,
filed

i t

July 19 filed 131,517.3 shares ($8 par) common stock.
Underwriting—H. M. Byllesby and Co., Inc., Chicago,
and Nelson Douglass & Co., Los Angeles.
Price by
amendment.
Proceeds—Part of the estimated net pro¬

Continental .Motors Corp.,' Muskegon, Mich.

Inc., St. Louis

Clinton Industries,
June

•'

•"

•

competitive bidding. -Probable, bidders include Morgan
Stanley & Co.; Lehman Brothers; Shields & Co.; Harriman Ripley & Co. and The First Boston Corp. (jointly).
Price by amendment. Bids Invited—Company will re¬
ceive bids up to noon EDST Sept. 10 at office of Com¬
monwealth & Southern Corp. (N. Y.) for the sale of
additional common stock as will produce net cash pro¬

($10 par)' and 250,000 shares ($1 par) out¬
standing common stock. Underwriter—Brailsford & Co.
Offering— company is offering the preferred and Gen¬
eral Finance Corp., issuer's sole stockholder, is offering
the common for its own account. Prices by amendment.
preferred

stockholders of record July 30 are given the

;

(9/10)

Jackson, Mich.

indication that there would be any.

mon

Aug. 9 Tiled • an unspecified number of shares (no par)
common
stock. : Underwriters—To
be determined by

Chicago %

Inc.,

Industries,

Offering—Com¬
right
to subscribe to the stock at $23 per share. Rights expire
Aug. 9. Proceeds—Proceeds, together with other funds,
will be applied as loans to the company's three Connec¬
ticut subsidiaries: Derby Gas & Electric Co.; Wallingford
Gas Light Co., and the Danbury and Bethel Gas and
Electric Light Co.
'

Los Angeles ;

Inc.,

($25 par) 4%% convertible
preferred stock and 150,000 shares (50c par) common.
Underwriter—Lester & Co., Los Angeles.
Price—$25 a
share of preferred and $9 a share of common.
Proceeds
—Of the total, the company will receive proceeds from
the sale of 851 shares of preferred. The remaining shares
of preferred and all of the common are being sold by
Ben Weingart, President and director.; Company will
add the proceeds to working capital.

'
5$44•■% f

Hotels,

Aug. 9 filed 97,363 shares

•

"•*

,**V >*

•' <

,•<9/17)
'

' y

'.J*.*'1

Colorado Milling &
—

;

•

;

•

«\

1 -»

Elevator Co., Denver,- Colo;
:

•

Aug. 2ft filed 70,000 shares ($50' par) -cumulative con¬
preferred stock.
Underwriter—-pniqn Securir
;ties Corp., New York. < Price by amendment.
Proceeds

vertible

'MPidor:\» tiy the'<: proposed • issue: •. of preferred stock, the
company plans to call its $3 cumulative convertible pre¬
ferred stock for redemption at $55 a share plus accrued
dividends.
Funds for the redemption will be supplied

.Proceeds from the sale of
preferred; i together: with other funds, will be used tp
by

short term bank loan.

.repay

-V

the bank loan.

Columbia AircraftProducts
N. J.

June

Inc., Somerville,

(9/L8)

150,000 shares ($4 par) 30c cumulative
preferred stock, convertible into common
of 1% shares of common for
share of preferred.
Underwriters—Floyd D. Cerf
26

filed

stock in the ratio initially
each

Offering—Company offered 59,585%

subscription to present common(stockholder?
6 at $4.50 a share in the ratio of one share

shares for

of record Aug.

preferred- for each share of common held. Rights
expired Aug. 20. The offering to common stockholders
'.excluded the two principal stockholders who waived
their rights to subscribe. The remaining 90,414% shares
and shares not subscribed to by common stockholders
/will be offered to the public through underwriters. Price
of

—$5

share.

preferred.
Underwriters—Otis & Co. and
Co.,, Inc.
Offering—To the public.. Price—
$25 a share. Proceeds—Estimated net proceeds of $1,356,200 will be used to redeem its outstanding 4% deben¬
tures, due 1967, to pay certain debts and for additional
aquipmeio^y manufacturing ; space and working: capital.
convertible

$250,000 for payment of a loan;

Brothers Engines, Inc., a
subsidiary, balance working capital.
$50,000 as a loan to Palmer

Columbia Gas & Electric Corp.

(9/9) §

,Aug, 8 filed $77,500,000 of debentures, due 1971, and
.$20,000,000 of serial debentures, due $2,000,000 on each
(Sept., 1, 1947 to 1956. Underwriters—To be determined
by competitive bidding.
Probable bidders include Mor-gan Stanley & Co.; Halsey, Stuart & Co., Inc.; The First
iBoston Corp.; Glore, Forgan & Co., ; W. E. Hutton & Co.
for both issues and Salomon Brothers & Hutzler; Shields
& Co., and Dick & Merle-Smith, (jointly) for the. serial

Invited—Company.will receive bids for
the purchase of the foregoing debentures up to noon
EDST Sept. 9,,at its office 61 Broadway, New York City,
.the coupon rates, to be specified on the bids.
debentures.

Bids

Commonwealth

Investment Co.,

Aug. 8 filed 250,000 shares
Underwriter: North American
cisco.
Price—At • market. *
-Business—Investment house.

($1 - par)

San Francisco
,

common

stock.

Securities Co., San Fran¬
Proceeds—For investment.
'

Inc., East Orange, >"

;

of notification) $100,000 7% cumulative
•(non-convertible) preferred stock and $100,000 class B
•common stock.
No underwriter at present, but one ex¬
pected.
Price, $50 for preferred and $3 for common.
.Proceeds—For purchase of equipment and for operating
July 29 (letter

capital.

offered by Dumont Electric Corp., and 69,Dumont Electric Co., a limited partnership.
Price by amendment.
Proceeds—Net proceeds from the
sale of the company's 25,000 shares will be used for gen¬
eral corporate purposes. Business—Manufacture of radio

000 shares by

Price

New York.

July 29 filed 140,000 shares ($1 par) common stock, of
which 40,000 shares are being sold by two stockholders.
Underwriters—By amendment. May be placed privately.
Price by

working capital.

capital.

Crawford Clothes, Inc., L. I. City, N. Y.

(9/16-20)

ceeds from the issuance of

•

Danly Machine Specialties,

—

(par $2)

for

common

24 filed 200,000 shares ($1 par) common stock.
Underwriter—Van Alstyne, Noel & Co. Offering—Offer¬

July

ing does not constitute new financing but is a sale of
currently outstanding shares owned' by members of the
Meyers family, owner of all outstanding stock. After

proceeds, together with a $1,000,000

loan, to purchase machinery, buildings and to retire

bank indebtedness. Temporarily
Dansaire Corp.,

postponed.

giving effect to the sale and

in part,

Dansville, N. Y.

common

Collieries Corp.,

shareholders.

Fidelity & Guaranty Fire Corp.,

Baltimore
stock.

Aug. 14 filed 100,000 shares ($10 par) capital
t Underwriter—United States Fidelity & Guaranty

Indianapolis, Ind.

Baltimore has entered into an

of notification) $300,000 5%% sinking
debentures. .Underwriter—City Securities Corp.

pany

of the stock not sub¬

stockholders.
Offering—Stock will be
to stockholders at. $40 a share.

offered for subscription
;

;

20,066 shares (no par) common stock. Un«.
derwriters—No underwriters were named and there was

Co. of

agreement with the com¬

to purchase at $40 a share any

scribed

of equip¬

ment.

Derby Gas & Electric Corp., New York

($1 par)

7,604 shares

behalf of the company and 6,896 shares on

(letter

Offering—Price $97 and interest. For purchase

Offering—Price $14.50 a
share.
Underwriter—Livingston, Williams & Co., Inc.;
First Cleveland Corp.; and Cunningham & Co. Company
will use its proceeds for purchase of additional machin¬
ery and equipment, plant improvement and other cor¬
porate purposes.
v /

Aug. 30 Stuart I. Whitmarsh, trading as Debutante Reg¬
ister Club (letter of notification) 1,000 units of partici¬

Plymouth, O.

(letter of notification)

behalf of selling

Debutante Register Club, New York

unit.

Fate-Root-Heath Co.,

Aug. 20

outside of New York State in violation of the

pating membership.
Offering—Price $100 a
underwriting. For operation of business. ;, [

assuming exercise of certain

option, the Meyers family will retain
ownership of approximately 58% of the common stock.

I warrants and

,Aug. '29 (letter of notification) 300 shares of 7% regular
preferred stock, 3,000 shares of 7% participating pre¬
ferred stock and 1,700 shares of common - stock (7%).
This is a recission as the stock was inadvertently sold,
.Securities Act of 1933.

Philadelphia., Price, $101. Proceeds
additional water properties or their

Frocks, Inc.

Fashion

stock

pBolger & CO., Chicago. Price by amendment. Proceedsuse

purchase'of

securities and for other corporate purposes.

III.

40,000 by company and 31,950 by certain stockholders.
Underwriters—Paul H. Davis & Co., and Shillinglaw,

Company will

Stroud & Co., Inc.,

July 26 filed 62,000 shares ($25 par) 5% cumulative pre¬
stock and 71,950 shares

June 24 (letter of notification) $275,000 4% debentures
due 1971.
Underwriters—C. C. Collings & Co., and

Explor¬

Inc., Cicero,

capital,

Engineers Waterworks Corp., Harrlsburg, Pa.

ing—Shares will be offered to the public at 75 cents a
share.; Proceeds—^Net proceeds, estimated at $300,000,
will .be used for mining operations. Business
ing for ore.

stockholders.

Engineering Laboratories, Inc., Tulsa, Okla.

Proceeds to increase working

May 31 filed 500,000 shares of common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto.
Offer¬

fund

Aug. 26 (letter of notification) 60,000 shares of $5 par
common.
No underwriter.
Offering—Price $5 a share.

Cyprus Mines, Ltd., Montreal, Canada

Aug.

♦.'

50,000 shares of the common

ferred shares will be sold by present

selling stockholder.

•

v»

remaining 100,000 shares of common stock and the pre¬

9 ,filed 300,000 shares ($5 par) common stock.
Underwriters—First Boston Corp., New York. Price by
amendment.
Proceeds—Go to Joseph Levy, President,

bank

U stock which will be used to increase productive capacity,
add new lines of products and expand the business. The

ferred

;

Aug. 28 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock, (par $25)
and 150,000 shares of
common
stock (par $1). Underwriters—Van Alstyne,
Noel & Co. Proceeds—Corporation will receive the pro¬

Copper State^ Life Insurance Co., Tucson, Ariz,

Aug.

•;

Empire Millwork Corp., New York

August 9 (letter of notification) 2,000 shares ($100 par)
class B preferred. Offering price, $150 a share. Under¬
writer not named. For setting up legal reserve for opera¬
tion of life insurance business.
"

amendment. Proceeds—From sale of company's

100,000 shares for purchase of inventory, payrolls, and

Inc^

writer—E* H. Rollins & Son,

Delta

Consolidated Air Transit,

—

shares being

by amendment.
Proceeds—Of the shares being offered
company is selling 100,000 shares and 15,000 shares are
being sold by a stockholder. The company will use its
proceeds to* provide additional factory space and pur¬
chase machinery and equipment and to construct a new
office building The balance will be added to working

•

//Commonwealth Aviation Corp., New York /
June 28, 1946 filed 150,000 shares ($10 par) 4%% cumu¬
lative convertible preferred stock. and 300,000 shares
($1 par) common stock. Underwriters—To be supplied
by amendment.. Price—$12 a share of preferred and $7
a share of common.
Proceeds—Estimated net proceeds of
$3 ,420,000 will be used for working capital.

;

(9/17)

York

| and electric capacitors.
\
\
,
Copco Steel & Engineering Co., Detroit
/
Aiig. 19 filed 115,(idO shares' (|l par) common.: Under¬
Electronic Laboratories, Inc., Indianapolis, Ind.

Proceeds—Approximately $55,000. for pay¬

ment of Federal taxes;

Electric Corp., New

Aug. 29 filed 94,000 shares of common stock (par 10c).
Underwriter
First
Colony [ Corp.
Offering — 25,000

Prescott &

convertible

•Co., Inc., -Chicago.,

• / Dumont

July 17 filed 60,000 shares ($25 par) 4%%; cumulative

working capital.
O'"'

Cooper Tire & Rubber Co., Findlay, O. (9/16-20)

Proceeds—Proceeds will be used to increase
and surplus

of the company.

the capital
^

June 19 filed

(Continued

on page

1300)

THE COMMERCIAL & FINANCIAL CHRONICLE

1300

stock

(Continued from page 1299)

purchase warrants to the selling stockholders at
entitling them to purchase up to Aug. 1,

Thursday, September 5, 19461
—Price

$125

unit

consisting of

10 cents a share

Aug. 15 (letter of notification) 1,250 shares of 6% cumu¬
lative preferred ($100 par). Offering price, $100 a share.
Underwriters—Maurice Welch, Belleville, N. J.,
and

and 25 common shares.

1949, cqmmon stock of the company at $11 a share. Price
Business—Manufacture and distribution

N. J.

Fidelity System, Inc., Newark,

ment of

ladies'

snods,

scarves,

turbans

other

and

headwear and accessories,

Secor, East Orange, N. J. Proceeds—For the pur¬
chase of real property, chemical equipment, salaries,
advertising and sales promotion of the products Fiedel-X
Termite
Kill, Fidel-X Mothproofing Compound and
others to be developed under the trade name Fidel-X.

novelty

•v.;v

Gloria Vanderbilt Corp.,

($1 par) common.
Under¬
writer—Elder, Wheeler & Co., New York. Price—$3 a
share. Proceeds—Estimated net proceeds of $727,000 will
be used for remodelling and equipping a manufacturing
plant, for purchase of inventory and for financing a pro¬
motional campaign.
:
'
*
*

shares ($5 par) class A stock and
300,000 shares (10 cent par) common stock, of which
200,000 shares reserved for conversion of class A. Each
share of class A stock is initially convertible into 2
shares of common stock. Underwriters—Herrick, Wad-

June 25, filed 100,000

dell

Co., Inc.,

:'V"

•*;.

...(j''

mon

share and $5

For

'/VlA'!"' ''''.C li

'■

Order Co.,

Inc., Baltimore, Md.

continued

sale

remaining proceeds, together with
funds, will be used for production of educational
' '
!
'
' '
*

•

30 filed for maximum aggregate payments of
$5,160,000 under periodic payment plans with insurance
protection, referred to as "DW" plans; $11,460,000 under
periodic payment plans without insurance protections,
referred to as "DWN" plans, and $3,380,000 under fully

Grand Valley Oil

Underwriter—Leven

plans, referred to as "DWP" plans.
Planholders
periodic payments of various amounts under the
different plans.
The periodic payments are made to a
bank which acts as custodian and, in turn, purchases
paid

Greens

for each

Fund,
which

York.

International

•

wholesale and retail distributor.

equipment

now

Grolier

par)

common

being acquired by the

company.

Society, Inc., New York

planes, ten flying boats, reconditioning of flying boats
and working capital.

shares of

Philadelphia

Inc.,

(9/17)

shares for each preferred share held; and 120,shares of $1 par common stock.
Underwriters—H.

Byllesby and Co., Inc.
Offering—Underwriters to
purchase from the company 18,500 shares of preferred
and 20,000 shares of common; and from Fred P. Murphy
and J. C. Graham, Jr., 100,000 shares of issued and out¬
standing common. Prices, preferred $100 a share; com¬
mon
$14 a share.
Proceeds—To retire $6 cumulative

Aug. 5 filed 60,000 shares ($15 par) cumulative preferred
stock.
Underwriters—Eastman, Dillon & Co. Price by
amendment.
Proceeds—To be used to redeem 15-year
3Vz% sinking fund debentures, due 1959; and $2.50 cum¬
ulative preferred at $53 a share.
to working

capital. 1

Balance will be added

preferred,

Foreman Fabrics Corp.,

New York

(9/23-27)

Jensen

preferred;

balance

for

Kalamazoo

expansion, working
amendment

Industries

Milwaukee,

Wis.

July 31 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock series A ($20 par) and 150,000 shares
(10c par) common, all issued and outstanding and being
sold by eight selling stockholders.
Underwriters—Van
Alstyne Noel & Co.
Price by amendment. Proceeds—
To selling stockholders.
Business—Manufacturers of

junior miss wearing apparel.
•

Glensder Textile Corp., New York

Co., Chicago
par)

held.

Price—$15

share.

•

Lake State Products, Inc., Jackson, Mich.
Aug. 27 (letter of notification) 100,000 shares ($1 par)'
for

common

benefit of

Co., Detroit.

issuer.

Offering—Price

Underwriter—Keane

$2.50

share.

for working capital to enable issuer to

Proceeds

produce its prod¬

uct, an automatic dishwashing machine in commercial
quantities.

Lime Cola

Co., Inc., Montgomery

Hano, Philadel¬
phia, and Kobbe Gearhart & Co., Inc., New York. Price
—$5.50 a share. Proceeds—Working capital.

Liquid Conditioning Corp. of New York

Under¬

par)

class A

common

for its temporary quarters in New
York, for furniture
and fixtures, equipment and other
corporate purposes.
Mada Yellowknife Gold

June 7

Mines? Ltd., Toronto

filed

250,000 shares of capital stock (par 40c>.
Underwriters
Names to be supplied by amendment.
Offering—Stock will be offered publicly in the U. S. at
—

(Canadian money).
Proceeds—Proceeds,
$75,000, will be used in operation of the
Business—Exploring and developing gold

estimated

common.

($10

Underwriters—No underwriting.
Offering—Price,
Proceeds—Proceeds will be used to pay

share.

company.

June

cost

$213,258, exclusive of accrued divi¬
dends.
It also will use approximately $402,000 toward
the purchase of a manufacturing plant in Chicago; bal¬
ance
for working capital. Offering temporarily post¬
poned.
/
'
'
<
;

(9/17) /

June

Inc., Los Angeles

Maine Public
25

100,000 shares ($1 par) common stock.
Underwriters—Van Alstyne, Noel & Co., New York, and
Johnston, Lemon & Co., Washington, D. C.
Offering—

filed

Service Co.,

150,000

Underwriters—To

Preque Isle, Me.

($10

determined

par) capital stock.
through competitive

bidding.
Probable bidders include The First Boston
Corp.; Kidder, Peabody & Co., and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co; Coffin & Burr and
shares

filed

Lynch, Pierce, Fenner & Beane. Proceeds—The
being sold by Consolidated Electric and Gas

are

Co., parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
Holding Company Act.
.

To be offered to the public at $8

a share.
Proceeds—
Company is selling 60,000 shares and stockholders are
selling 40,000 shares. The company will use its proceeds
to pay the costs of opening additional stores and to ex-Y
pand merchandise in its existing stores.

Hayes Manufacturing Corp., Gr. Rapids, Mich.
Feb. 27 filed 185,000 shares of common stock ($2 par).
Shares are being sold by certain stockholders.
Stock

acquired by selling stockholders in exchange for 432,000
shares of common stock (par $3) of American Engineer¬
ing Co. Underwriter—By amendment. Offering—Price by
amendment.

Jfolt

(Henry)

& Co., Inc., New York

(9/23-27)

June 28,1946 filed 20,000 shares of 4%%
($25 par) cumu¬
lative
convertible
preferred stock and

33,884 shares
($1 par) common stock. Undrewriters—Otis & Co., Cleve¬
land, Ohio. Offering—Company is selling the preferred
shares and stockholders

Price—$25

are

selling the

common

shares.

share of preferred. Price for the common
Proceeds—Net proceeds will be added

Aug. 28 filed 355,000 shares ($1 par) common, of which

by amendment.

55,000 shares are reserved for issuance upon the exer¬
cise of stock purchase warrants.
Underwriter — Van
Alstyne, Noel & Co.
Offering—The 300,000 shares are
issued and outstanding and being sold for the account
of certain stockholders.
Company has also issued 55,000

to general funds.

$500,000 short-term bank loan, to make loans
to The KVP Co. Ltd., a
subsidiary, and to increase work¬
ing capital, Business—Converter of paper products,
f

Merrill

Corp., L. I. City

Inc.,

($1

Co«

mining properties.

Hartfield Stores,

plant, and for working capital.

Industries

five

estimated

Inc., New York

preferred stock ($25 par). Underwriters—W. C. Langley
& Co. and Aronson, Hall & Co.
Price by amendment.
Proceeds—To pay cost of acquisition, construction and

Glen

Jacksonville, Fla.

approximately 200,000 shares have agreed to waive

Instrument

Parchment

ment.

115,000 shares of cumulative convertible

new

each

writer: Paul H. Davies & Co., Chicago. Price by amend¬
Proceeds—Net proceeds will be used to redeem
its outstanding 6% cumulative preferred stock at an

Inc., N. Y.

(par 10) common.
Offering—Price $5.02 a unit consist¬
ing of one share of preferred and one share of common.
No underwriting.
For leasing a plant, purchasing and
installing machinery and for working capital.

equipment of

to retire

$10

Aug. 8 filed 80,000 shares

(letter of notification) 44,000 shares ($5 par)'
6% cumulative convertible preferred and 188,000 shares

General Bronze

for

stock.

Hammond

capital,

Aug. 29

July 26 filed

a share.
proceeds, estimated at $300,000, will be
mining operations.
Business—Exploring for

for

Vegetable

Sept. 3 filed 100,000 shares ($10 par) common stock#
Underwriting — No underwriting.
Offering —For sub¬
scription to common stockholders in the ratio of one

40c

Garval

(par $1).
Offer¬

their preemptive rights.

Aug. 6 filed 100,000 shares ($1 par) capital stock.
Un¬
derwriter—Van Alstyne, Noel & Co., New York.
Price
by amendment.
Proceeds—The shares are issued and
outstanding and are being sold by Ivens Sherr, President
and A. I. Sherr, Executive Vice-President, who will re¬
ceive proceeds.
'
•

(Mich.)

(9/23)

July 3 filed 70,600 shares

Dividend rate and price by

Fownes Brothers & Co.,

stock

Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬
fered to present shareholders at $3 per share.
Holders

29 filed 100,000 shares of cumulative preferred
stock (par $25). Underwriter—Blyth & Co., Inc.; Pro¬
ceeds—Approximately $1,060,950 for redemption of class

etc.

common

by;

June 28, 1946 filed 225,000 shares
(10 cent par) common
stock.
Underwriters—Newburger and

loan.

Gulf Atlantic Transport'n Co.,

July

ore.

Co., San Francisco

(9/17-20)]

Offering temporarily postponed.

used

17, filed 280,000 shares ($1 par) common stock.
Underwriters—Peltason, Tenenbaum Co., St. Louis. Of¬
fering—Shares will be offered publicly at $11.25 a share.
Proceeds—Net proceeds go to the selling stockholders.

Co., Inc., N. Y.

common stock (par
$1).
Offering—Price $10 per share.
stockholders will receive proceeds. ; »

Proceeds—Net

(9/10-16)

June

Foster & Kleiser

Dress

Manufacturing Co., Chicago

stockholders.

•

ing—Shares will be offered to public at 75 cents

Co., St. Louis

redemption
treasury funds,

July 24 filed 148,176 shares ($1 par) common stock. Un¬
derwriter—Doyle,/O'Connor & Co., Chicago.
Prioe,
$8.87 Vz a share.
Proceeds—Shares are being sold

Underwriters—Sabiston-Hughes, Ltd., Toronto.

Forest City Mfg.

notes, discharge

May 31 filed 500,000 shares of

pay

Gubby Mines, Ltd., Montreal, Canada

July 29 filed 110,000 shares ($1 par) common stock, all
outstanding. Underwriters—Cohu & Torrey./ Price by
amendment.

$4.25 preferred to purchase at any time 64,750
common stock at $16 a share at the ratio of
3Vz

common

000

Food Fair Stores,

the

Proceeds—Proceeds, estimated at $1,500,000, will be used

July 29 filed 18,500 shares at $4.25 cumulative preferred
stock ($100 par),
with non-detachable common stock
purchase warrants entitling registered holders of shares
the

stock.

May 6 filed 300,000 shares common stock (par $1). Un¬
derwriters—J. F. Reilly & Co., Inc., and Courts & Co.
Offering—Price to public $3.50 per share.
Proceeds—
Proceeds will be used for the purchase of six land

prior
added

(letter of notification) 9,340 shares (no par)
Underwriter—Gardner F. Dalton & Co., Mil¬
waukee, Wis. Offering—Price $20.50 a share. Proceed?
for working capital.

Flying Freight Inc., New York

common.

two

Co., New York, and
Bolger & Co., Chicago.
Offering—Price.
$3.50 a share.
Proceeds—Net proceeds will be used
partly for working capital and to pay for production

incorporated investment company for
the sponsor (First Investors Shares Corp.) acts as

will

Jacobsen Mfg.Co., Racine, Wis.

Shillinglaw,

and

common

Aug. 27

Proceeds—

Ready Built Homes Inc., Rockford, III.

filed 350,000 shares ($1
Underwriters—R. H. Johnson &

planholder shares of capital stock of Wellington

Inc.,

Brothers, New

(9/16-20)

July

into

balance

Proceeds—Selling

Corp., New York

For direct corporate purposes.

make

The

Underwriter—Otis & Co.

(letter of notification) 300,000 shares ($1 par)
Of the total, 85,590 shares are to be exchanged
overriding royalty interests in leases and fee prop¬
erties formerly operated by R. E.
Leyendecker, Inc., and
operations to be carried on by the issuer. / The balance,
214,410 shares, will be offered publicly at $1 a share.

Aug.

converted

date.
•

mer¬

common.

New York

Decatur, III,

Aug. 28 filed 140,000 shares of

general

Aug. 28

First Investors Shares Corp.,

;

June 17, filed 200,000 shares
($50 par) cumulative pre-i
ferred stock and 966,870 shares
(no par) common stock.
Underwriters—By competitive bidding. Probable bid¬
ders include Blyth &
Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and W.
E.
Hutton & Co. (jointly). Proceeds—Net
proceeds from the
sale of preferred will be used to
reimburse the com¬
pany's treasury for construction expenditures. Net
pro¬
ceeds from the sale of common will be
applied for re¬
demption of 5% cumulative convertible preferred stock

distribution

for
•

;

Power Co.,

No underwriting.

preferred share.
and

Illinois

not

chandise.

stock at $100 a share;
films.

Aug. 12 (letter of notification) 22,500 shares of common
and 3,000 shares of preferred.
Offering—Price $2 a com¬

publicly at $8.10 a unit consisting of one share of class A
stock and one share of common stock.
Proceeds—$201,000 for retirement of 2,010 shares ($100 par) preferred
other

:j:-''..

Gordon Mail

Offering—To be offered

New York.

(9/9-13)

New York

Aug. 5 filed 300,000 shares

(9/23)

Inc., New York

mining claims.

preferred share
For develop¬

one

underwriting.

by amendment.

M. H.

Films

Idaho Calcium Corp., Mountain Home, Ida.
Aug. 8 (letter of notification) 150,000 shares ($100 par)
preferred and 37,500 shares of $1
par common. Offering

May McEwen Kaiser Co., Burlington, N. C.
(9/16-20)
Aug.

filed

175,418

shares, ($1 par)
Sachs & Co.,

common

stock.

Underwriters—Goldman,

and Hemphill,
Noyes & Co. Price—By amendment. Proceeds—Net pro¬
ceeds go to 11 shareholders who are
selling the stock
being registered.
Business—Manufacture of women's

hosiery.
•

•:....,^/v

Mercury Messenger Corp., New York, N. Y.

Aug. 28 (letter of notification) 93,000 shares of capital
common
stock (par 20c).
No underwriting.
Price—
$2.70 a share. Proceeds will go to expansion of issuer's
business.

Metal

,;.v7.

Forming Corp., Elkhart, Ind.

■■

(9/10)'

July 29 filed 60,000 shares ($1 par) common stock. Un¬
derwriter—First Colony Corp.
Offering—For the bene¬
fit of 11 selling stockholders. Price, $7.50 a share,*
Metal-Glass Products Co.,

Belding, Mich.

Aug. 20 (letter of notification) 175,000 shares ($1 par)
common and 25,800 shares of the same which
may be
issued in exchange for 2,580 shares of its 6% cumulative
preferred ($10 par).
Offering—Price, $1.25 a share.
Underwriter—Carr

Co.,

Detroit.

reduce

bank

[Volume 164

Number" 4522

1301

THE COMMERCIAL A FINANCIAL CHRONICLE

loans, retire mortgage securing them and for additional
[working capital.
•

Mica Mountain Mines, Inc., Salt Lake City
Aug. 28 (letter of notification) 200,000 shares of common

New Issue Calendar

stock. Offering—Price 25 cents a share. Underwriting—
Howard R. dinger and Oscar M. Lyman, both of Salt
Lake City.
For payment of accounts payable, working
capital and re-purchase of stock previously sold.

(Showing probable date of offering)
September 5, 1946
Blum

September 17, 1946

-':

(Philip) & Co., Inc.-

Acme-Hamilton Mfg. Corp.—-Preference

Common

Michigan Gas & Elec. Co., Ashland, Wis.
June 24 filed $3,500,000 of series A first mortgage
bonds,
due 1976; 14,000 shares ($100 par) cumulative
preferred
stock and 120,000 shares ($10
par) common stock. Un¬
derwriters—To be determined by competitive bidding.
Probable bidders include Blyth & Co., Inc.; Kidder, Peabody & Co.; The First Boston Corp.; Harris, Hall & Co.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co. Offering—New preferred will be offered
on

for

September 6, 1946 ^
Scovill Manufacturing Co.™.......™.
Sun

filed

preferred not issued in

accrued dividends

100,000

Stern & Stern Textiles, Inc

(noon—EDST)

($1 par)

capital and surplus for operation of
Company is to be organized in Mississippi,

Airline Foods Corp

Cincinnati Gas & Electric Co.™i™
Consumers Power Co.

(9/9-13)

(noon—EDST)

•

Allis-Chalmers Manufacturing
Camfield

(

Aug. 23 (letter of notification) 500,000 shares of

common

non-assessable

capital stock. Underwriter—L. F. Hachez
Co., Spokane, Wash. Offering—Price \2Vz cents a
Share. Proceeds for exploration, drilling, equipment, etc.
and

Crawford

Smith

Barney & Co. (jointly); Harriman,
Ripley & Co.; The First Boston Corp. Offering—Shares,
are owned by Standard Gas & Electric Co. and con¬
stitute

56.39%

the

company's outstanding

common.

Sale Postponed—Standard Gas & Electric Co. asked for

bids for the purchase of the stock

Co., Inc

Sept. 4, but the

sale has been temporarily postponed.

Common

September 24, 1946

September 28, 1946

Common

Westinghouse Electric Corp.——Common

—Capital Stock

--Preference and Common

Soya Corp. of America--

Steep Hock Iron Mines, Ltd
Sun Electric

Service Co

Co.,-Inc.^ Detroit (9/23-27)

convertible
preferred (par $10), and 30,000 common sares ($1 par).

Murphy ( G. C.)

Co., McKeesport, Pa.

Underwriter—Smith, Barney & Co.
Price by amend¬
Proceeds—Redemption of outstanding 4%% pre¬

ment.

ferred stock at $109
•

share plus dividends.

National Aircraft Corp.,

Hagerstown, Md.

Aug. 26 (letter of notification) 2,000 shares of common
stock.
No underwriter.
Offering—Price $100 a share.
Proceeds for general corporate purposes principally for
research, experimentation and perfection of patents.
National Alfalfa

•

Dehydrating & Milling Co.,

Lamar, Colo, v

June 28 filed 28,960 shares of 4%% cumulative preferred
stock ($100 par), 250,000 shares of common stock
($1

par) and warrants for 28,960 common shares (attached
to preferred stock).
Underwriters—Stone & Webster
Securities Corp., and Bosworth, Chanute,
Loughridge &
Co. Price by amendment.
Proceeds—Shares are out¬
standing and are being sold by stockholders. Tempora¬
rily postponed.

July 11 filed $22,500,000 20-year collateral trust sinking
fund Series A bonds, and a maximum of 1,568,980 com¬
mon
shares ($5 par).
Underwriters—By amendment.
Bidders may include Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co.

(stock only), First Boston

Corp., White, Weld&Co.-Kidder,Peabody & Co. (jointly).
Offering—Bonds and common stock are being offered in
connection with a compromise recapitalization plan

Evans &

Co., Inc. Proceeds—-For redemp¬
$2.50 class A non-cumulative stock.
Postponed indefinitely.
*
tion of outstanding

1946

stockholders.
Business—Manufacture and sale
nameplates, instrument dials, clock and watch,

of metal

dials, etc.
Indiana

Northern

Public

Service

Co.

maximum of 384,016 shares of common
stock. Underwriters by amendment as shares will be
offered under competitive bidding. Probable bidders in¬
clude Blyth & Co., Inc.; The First Boston Corp.; Stone
& Webster Securities Corp., and Harriman Ripley &

Aug.

28 filed

Co., Inc. (jointly). Of the shares registered, 182,667 are
being sold by Midland Realization Co.; 54,426 by Mid¬
land Utilities Co., and 146,923 by Middle West Corp.
Northwestern Public Service Co.,

Huron, S. IK,

$5,275,000 first mortgage bonds, due 1976J
26,000 shares ($100 par) cumulative preferred stock;
and 110,000 shares of $3 par common.
Underwriters—
To be determined by competitive bidding.
Probable
bidders include Halsey, Stuart & Co. Inc. (bonds); Har¬
riman Ripley & Co., Inc.; Lee Higginson Corp.; A. GL
Becker & Co., Inc., Salomon Brothers & Hutzler, Dick
Merle-Smith, Drexel & Co., Harris Hall & Co. (Inc.)
and Stroud & Co., (jointly); Offering—Securities will be
sold at competitive bidding. Proceeds—Refunding.

June 28 filed

stockholders.
Northern

Aug. 23
common

Engineering Works, Detroit, Mich.

(letter

of notification)

7,450

($1 par)

owned by the two individuals viz.: William W.

Peattie and Reed C. Zen.

Underwriters—Mercier, McSmith, Hague and Co., Detroit,
and Investment Securities Co., Jackson, Michv Offering
—Price $7 a share.
Proceeds to sellers,
Dowell & Dolphyn and

•

O.D.

Keep Associates, Inc., Los Angeles

(letter of notification) 30,000 shares

Aug. 26

preferred

and

15,000

Price—$5

underwriter.

to finance new

Northern Engraving & Mfg. Co., La Crosse,

Wis.

(9/17)

Aug. 29 filed 70,000 shares
Underwriter—Cruttenden
are

issued and

($2
Co.

par)

common

stock.

* Offering—All shares

outstanding and being sold for the account

present holders.

Price—$16

share.

Proceeds—To

($5

par)

semi-monthly magazine to be known as
-

Eploration Co., Spearfish, S* D.

O-F

•

Aug. 28 (letter of notification)

180,000 shares of common

Offering—Price 50 cents a share.
writing.. For development of tungsten mine.
(par 10c).

;

($5 par)

common.
No
share for each class. Proceeds

"Fortnight."
•

Clement A.

approved by the SEC, on June 24, 1946, which among
things provides for the elimination of all out¬
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000
of new common shares.
Price by amendement. Proceeds
—To retire outstanding securities, aggregating $34,998,500. Bids for the purchase of-the bonds and the common «. wfr Nugent's.NationalStores, Inc., N. Y, (9/9*13)
June 21 filed 85,000 shares ($1 par) common stock;
stock which were to be received by the company Aug. 13
Underwriters—Newburger & Hano, and Kobbe, Gearhart
were withdrawn Aug.
12, Sale postponed indefinitely.
& Co., Inc.
Price, $6.75 a share. Proceeds—Net pro¬
ceeds to the company from 62,000 shares, estimated at
North American Acceptance Corp., Philadelphia
$350,200, will be applied as follows: About $111,300 for
Aug. 22 (letter of notification) 11,600 shares Class A ' retirement of outstanding preferred stock; $41,649 to
stock.
Underwriter—W. H. Bell & Co., Inc., Philadel¬
purchase 100% of the stock of two affiliates, and bal¬
phia. Offering—Price $4.50 a share. Proceeds for work¬
ance
$197,000 for other corporate purposes. The pro¬
ing capital to conduct finance business.
;
ceeds from the other 3,000 shares will go to selling

National Manufacture and Stores Corp., Atlanta
June 12 (letter of notification) 8,500 shares of common
stock.
Offering price, $35 a share.
Underwriters—

England Gas and Electric Association

other

June 13 filed 250,000 shares of common stock (par $1),

selling

Underwriters—O'Connell & Janareli, New York. Offer¬

Friedman, President
and Secretary-Treasurer, respectively, each selling 15,000
shares of preferred and 15,000 shares of common. Price
—$10 a share for the preferred and $6 a share for the

Acme Electric Corp.——Common

ing—Shares are issued and outstanding and are being
sold by Maurice Cohen and Samuel

14, 1946.

October 21,

Common

Aug. 2 filed 30,000 shares of 6% cumulative

Preferred

——

Plastic Molded Arts, Inc.—„———Pfd. and Com.

Common

————

1, 1946

October

—Preferred

West Virginia Water

Newburgh Steel

October

American Locomotive Co

^-Capital Stock

Corp

Swem & Co

-Common

Pfd. and Com.

Tampa Electric Co.————Bonds

l™™Common
...

Sardik Food Products Corp

New

Vegetable Parchment Co.——Common

Newburgh Steel Co., Inc.—

Common

-May McEwen Kaiser Co.-

Corp.—-——-—Common

& Co., Inc.——Pfd. and Com.

Preferred;

Clothes, Inc.-..

Greens Ready Built Homes Inc,

common.

Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb

Holt (Henry)

Common

Cooper Tire & Rubber Co

Mountain States Power Co.
June 6 filed 140,614 shares of common stock (no
par).
Underwriters—To be determined by competitive bidding.

Fabrics

Forman

;

Preferred

Manufacturing Co

Soupto, Inc

Inc., Helena, Mont.

Films Inc.—————————CI. A and Common.

Kalamazoo

and

September 23, 1946
Clary Multiplier Corp.—————.Preferred

.Common

Drayer-Hanson, Inc.—-———-CI. A Stock

July 22 filed 249,550 shares ($10 par) common and 70,000
shares of ($50 par) 4lk% cumulative convertible pre¬
ferred. Underwriter—Blyth & Co., Inc., and Wegener
& Daly, Inc.
Proceeds—Selling stockholders are of¬
fering 149,550 shares of the common and will receive
proceeds from these shares.
The company's proceeds,
together with funds to be provided from the sale of
$2,000,000 of 3%% debentures, due 1961, will be used to
retire its certificates of indebtedness, outstanding pre¬
ferred stock and a portion of its bank loans. It also will
use the funds for investment in preferred stocks of sub¬
sidiaries. Price—Preferred, $50 per share; common, $16
per share.
v

Stock

-Common

September 16, 1946

•-

Montana Silver Star Mines,

September 20, 1946
Savoy Plaza, Inc.———CI. A and CI. B

.^Common

stock.

business.

-v

Stix, Baer & Fuller Co.—————^-Common

__Debs., Pref. and Common

Metal Forming Corp..

Morrison-Knudsen Co., Inc., Boise, Idaho

Co.

September 18, 1946

Forest City Manufacturing Co.-.™:™™_Common

create

"Com.

September 10, 1946

ex¬

August 19 (letter of notification) 14,000 shares ($10 par)
common "stock, offering price
$20 a share. Underwriter—
rClany M. Seay, Jackson, Miss, will undertake to obtain
signatures authorizing subscriptions for the stock to

•;•••

Common

Columbia Aircraft Products Inc.———Preferred

Colonial Sand & Stone

•

Common

Inc.—Preference and Common

Willett (Consider H.), .Inc.™»__™..™—Common

all unexchanged

common

Common
—

Central & South West Utilities Co.—Capital Stock

Mississippi Fire, Casualty & Surety Corp.

•

White's Auto Stores,

—--Common

Co.—

Nugent's National Stores, Inc.™„™_..™Common

Underwriters—Cray, McFawn & Co., Detroit. Offering—
To be offered publicly at $8.25 a share. Proceeds—Pur¬
chase additional facilities, expansion, etc. Offering indefinitely postponed.
-

™_.Debentures

Morrison-Knudsen Co., Inc.—Preference &

Michigan Steel Casting Co., Detroit
27

Northern Engraving & Mfg.

Corp.

shares of prior lien and preferred stocks.

June

International Dress Co^—

Gloria Vanderbilt Corp.

change will be used to redeem $375,000 3Vz% serial de¬
bentures, due 1951, at 101.2 and interest. It also will
105 and

rnniwion

Net proceeds from sale of com¬

and from shares of new

Corp.—Common

Columbia Gas & Electric

Proceeds
—Michigan will use net proceeds from bonds to redeem
$3,500,000 3%% series A first mortgage bonds, due 1972,

redeem at

Corp....™„...

———Preferred

Stores, Inc.—;

Glensder Textile

Preferred

Corp.—-————Common

Ben Hur Products, Inc.™—™.™-..JDebentures

exchange basis to holders of its

& Co. Inc., New York, is selling 22,774 shares.

mon

Electric

Dumont

Corp.™..™__._..™_... .Debentures

American Time

———Debs, and Com.

Co., Inc

Colorado Milling & Elevator Co.—

Food Fair

7% prior lien, $6 no-par prior lien, 6%
preferred and $6 (no par) preferred.
Of the common
stock being registered, company is selling 40,000 shares,
Middle West is selling 57,226 shares and Halsey, Stuart

at 106.75 and interest.

Chemical

Central Soya

..Preferred

September 9, 1946

outstanding

aiid Com.

Ansley Radio Corp.— —Preference and Common

(Continued

on page

1302)

No under¬
\

1302

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued from page 1301)
Oklahoma Oil Co., Denver,

(letter of notification)

3% notes held by National Bank of Detroit, $75,000 to
reimburse treasury for sums spent in acquisition of the!
electrical division plant of the company, $30,000 for con¬

Colo.

571,000 shares

(5c par)
Myers, President and
Treasurer of the company.
Offering—Price at market.
Underwriting—Inter-Mountain Shares, Inc.
Proceeds—
Aug. 5

common

Go to the

Frank

behalf

selling stockholder.

;

Red

of South Africa

Bottling Co. of Pittsburgh

{1, 1947. No underwriting. Price
Proceeds for working capital.

similar number of ordinary shares

shillings, South African currency (U. S. $2,017). Un¬
derwriters—None.
Offering—To be offered at $5 a share
to stockholders of Newmont Mining Corp. on the basis

Rock

one

cent per warrant.

•

Red

comply with the list¬

ing requirements of the New York Curb Exchange as to
distribution of shares.
O'Okiep has pending an appli¬
cation to list the American shares on the New York

cent

one

warrant.

Underwriters—Frank C.

Moore

For

distribution of these shares

Curb

may

Exchange.

Co., New York; and Hall, Tattersall & Co., Philadelphia.
payment of plant mortgage, purchase of additional
equipment and for working capital.
>.
.

Republic Pictures Corp., New York
Orange-Crush de Cuba, S. A., Havana, Cuba

will

company

;

share for

share, with cash adjustments, for the new pre-

Solar

June

Pal

Blade

writers and 70,000

225,000 shares

•.

($1 par) capital stock.

J Marlman
i

•«.

i ■

all

Palmetto

August
stock.

Fibre

employees..

-v'\. X-f?-v. v.v: .\

Corp.,

•••

Offering—Price

*• -

ceeds also will be used for additional
manufacturing
facilities in the amount of $600,000; for additional inven¬

tory amounting to $400,000, and for additional working
capital.
'
•

Southern

Washington,

new

Punta

Pateros

Mining Co., Spokane, Wash.

(letter

assessable stock.
a

share.

notification)

392,000

No underwriters.

Proceeds

mining properties
•

to
now

for their
•
4

Aug.

shares,

non¬

Offering—Price 25c

held by issuer. ;

Inc., New York

account.

Price, by amendment.

Business—Investment house.

;

holders:

;

Noel & Co. and associates.

Products

Corp., N. Y.

(9/16-20)

5% cumulative convertible
Underwriter—Van Alstyne,
Price by amendment.
Pro¬

pay

(-s

' \x<

r \r>^ /I \ ^

,'i

--V*

July 1, 1946 filed $1,750,000 second mortgage 4% noncumulative income bonds, due
1961.
UnderwritersRoger W. Babson, Wellesley Hills, Mass., and Charles F.
Ayer.
Offering — Company will issue $750,000 of the
bonds to two banks which hold two first mortgages on
all of the company's real estate and the remaining $1,000,000 of the bonds will be offered to the company's
one

bond for each unit of

3% shares of stock held.
sold

Unsubscribed shares will be
Price to stockholders $27.50 a

underwriters.

share and price to underwriters $26.50 a share.

Proceeds
—Company will pay $225,000 to the two banks holding
its mortgages and the balance will be retained for neces¬
sary repairs to its real estate.
^
;

Lid., Ontario (9/16«20)j

general . funds and will be available for general
corporate purposes. For details see issue of April 4.. /;/^v
Stern & Stern Textiles,

Inc., New York

(9/17K*

Aug. 29 filed 191,000 shares of common stock ($1 par)>
Underwriter—Carl M. Loeb, Rhoades & Co.
Offering-

ment and plant, etc.

5,000

Manufacturing Co., Waterbury, Conn.

the

$30

Company

rate

one

will

for

each

seven

held

net

proceeds to pay bank loan and to finance
purchase of additional machinery, equipment and
use

offering 51,000 shares and selling stock/
disposing of 140,000 issued and outstanding '

the sale of 51,000

shares of preferred stock, $100 par.
Business-^Company's subsidiaries manufacture broad silks, rayons
and nylon fabrics which are sold by the issuer.
* "

Atlanta,

Ga.

(9/16)

Aug. 7 filed 25,000 shares ($10 par) 5% cumul. converti¬
ble preferred stock and 244,000 shares ($1 par) common
stock. Underwriters—Clement A. Evans & Co., Inc., At¬
lanta. Price by amendment. Proceeds: Company is sell¬
ing the 25,000 shares of preferred to the underwriters at
$10 a share and stockholders are selling a minimum of
220,000 and a maximum of 244,000 shares to the under¬
writers at $5 a share. The registration stated that 24,000
of the 244,000 shares of common are being reserved for
a period of four
days following the effective date of the

(9/18-19)

Stix, Baer & Fuller Co., St. Louis

stock (par. $5)*
Offering—Eight
selling stockholders are disposing of 62,000 shares, and
the company will offer 40,759 shares initially to its pre¬

Aug. 28 filed 102,759 shares common
Underwriter—Goldman, Sachs & Co.

Price by amendment.
the sale of the company's
will be added to its "building construction and

ferred and

common

stockholders.

Proceeds—Net proceeds from
shares

improvement fund."
store.

Business—Operates

department

Street & Smith

Inc.,

Proceeds—Proceeds from

shares by the company will be used to
funds spent on June 26 to retire

reimburse treasury for

per

Scripto,

Mich.

proceeds, $250,000 will be used to

< ,

Price by amendment.

buildings.

„

ceeds—Of the net

•

shares'.

the

properties of the Interurban Railway
Co., working capital,
etc. Offering price of debentures $105; price of common
to public, $8.25 per share.

July 5 filed 75,000 shares
preferred stock ($10 par).

/ V

Steep Rock Iron Mines

share. Rights expire Sept 20. Unsubscribed
shares will be sold to underwriters.
Proceeds—Company

and the

of Ann Arbor,

375,000

are

Division of Portland Electric Power

Cp.

28 filed

holders

Scherck, Richter & Co.; Weeden & Co.; Allen & Co., and
Rauscher, Pierce & Co. Proceeds—To complete payment
of purchase price for the capital stock of Portland Trac¬

Parts

shares (par lc) common stock.
amendment.
Proceeds—To, repay RFC
loan, to buy Canton Mills, Inc. and for working capital.
Price by amendment.

•

(par

Precision

$2,135,000.

Underwriter by

August 15 filed 100,000 shares ($100 par) cumulative
preferred stock and 149,548 shares ($25 par) common
stock. Underwriters—Morgan Stanley & Co., New York.
Offering—Preferred will be offered publicly. Common
is offered for subscription to stockholders of record Sept.

•

an additional 128,750 common shares for con¬
version of debentures. Underwriters—First California
Co.;

Texas'

Soya Corp. of America (9/16)

Aug.

•

Food

(9/6)

$1); also

Co.

•

May 29 filed 175,000 shares of capital stock (no par).
Underwriter—George F. Breen, New York. OfferingStock will be offered to public at $14 a share. Of the
total being offered company is selling 155,000 shares and
the remaining 20,000 shares are being sold by two stock¬
holders.
Proceeds—Working capital, purchase equip-

June 14 filed $1,250,000 4% convertible debentures
due
June 1, 1966, and 200,000 shares of common stock

tion

Southwestern Public Service Co., Dallas,

Sardik

Sulphite & Paper Co.

Co.

par), !

the

(10/14)

Aug. 28 (letter of notification) 25,000 shares of common.
Offering—Price $11 a share.
No underwriting.
For
construction of warehouse and railroad
siding and for
working capital.
Transit

($1

The stock
share.
These

March 27 filed 500,000 shares of capital stock (par $1).
Underwriters—Otis & Co.
Offering—Price to public by
amendment.
Proceeds—Net proceeds will be added to

Scovill

(Ore.)

July 24 filed $20,000,000 of first mortgage bonds, serie^
due 1976.
Underwriters—To be supplied by amendments
Probable bidders include Dillon, Read & Co. Inc.; Hajsey,
Stuart & Co. Inc., and Blyih & Co., Inc.
Price by amend¬
ment.
Proceeds—Net proceeds, with other funds, will
be used to redeem $17,500,000 of 3Vs% first mortgage
bonds, due 1974, at 106%%, and to purchase the electric,
water and ice properties of West Texas Utilities Co*
located in the northwestern portion of the Texas Pan-*

stockholders in the ratio of

equipment, pay. bank loans, and other corporate purposes.

Portland

at $12

director, and Harry Preston, board Chairman, Secretary
and Treasurer, will receive net proceeds as selling stock-

Preferred, $10 a share; common, $4 a share. ProceedsProceeds from sale of preferred will be used to purchase

(Mich.)

five purchasers

State Street Exchange, Boston, Mass.

New York

San-Nap-Pak Mfg. Co. Inc.* New York

Aug. 27 filed 60,000 shares of preferred stock ($10 par)
and 75,000 shares of common (par 50c).
Underwriter—
Herrick, Waddell & Co., Inc.
Offering—Company is
offering the preferred stock to the public, while the
common is being sold by certain stockholders.
Prices—

Port Huron

Webster, Inc.

July 24 filed 80,000 shares ($1 par) common stock. Un¬
derwriters—Dunne & Co., New York.
Offering—Price
by amendment.
Proceeds—Nat E. Heit, President and

Under¬

drilling
machinery
and
other equipment.
Business—Exploring for natural oil and gas in the Pe¬
ninsula of Gaspe, Province of Quebec, Canada.
Molded Arts,

own

vestment.

purchase

•

sold

S. C.

5,000

writing in the present sale and proceeds go to the sell-?'
ing stockholders.
'

Sept. 3 filed 600,000 shares of common (par $1),

behalf of Stone &

'■

Russell Berg Fund, Inc., Boston

Ltd., Montreal, Canada

writer—Sabiston Hughes, Ltd., Toronto, Canada. Price—
60 cents a share.
Proceeds—Net proceeds will be used to

Plastic

share. Proceeds to operate and

Sept. 3 filed 51,394 shares ($1 par) capital stock. Under¬
writing—Boston Safe Deposit & Trust Co., holds in cus¬
tody all moneys and investments and it alone is em¬
powered to make collections and disbursements of prin¬
cipal and income.
Price at market.
Proceeds—For in¬

purchase equipment and develop

Peninsular Oil Corp.,

July 29 filed 120,000 shares common stock. Underwriters
—Hayden, Stone & Co. Offering—The selling stockhold¬
ers, who include Robert Z. Gre'ene, President, are offer¬
ing the shares to the public through the underwriters,

Gorda, Florida, at a cost of about
$951,928. It will set aside $150,000 for research and de¬
velopment purposes and the balance will be used as
operating capital.
?•
;
/
•

$500

Rowe Corp.,

share. Proceeds—The company will use esti-

near

Co., Charleston,

of notification)

the notification stated, may reoffer the shares
publicly at the market price.
There will be no under¬

D. C.

mated net proceeds of $1,473,000 for purchase of a

vfactory

Ice

(letter

■

persons,

establish general golf and- country club business.

••••

writers—Van Alstyne, Noel & Co,
Price by amendment.
Proceeds—Net proceeds will be applied for the
redemp-1.
outstanding series A convertible preferred stock
which are not converted into common stock.
Such

16 filed 4,000,000 shares (100 par) preference
Underwriting—Tellier & Co., New York.; Price

50 cents
>

salaried

:.y'..\y,v-yT

''1

Business-j-PersonaiV/i

tion of

handle for

Club, Inc., Alexandria, Va.

Aug, 23 (letter of notification) 349 shares of Series A
common, par $500 and 249 shares of Series B common,
par
$500.
No underwriting presently contemplated.

Co., Inc. p. Offering —
outstanding and are being sold by 10

are

stockholders, and 2,500 shares are being sold by A. L.

shares to Bethlehem Steel Co. PriceProceeds—Working, capital. Tempora¬

Rosehill Country

■//.p;///V!;;//,'■/:

Manufacturing Corp.

Co., Inc., New York

June 28, 1946 filed 227,500 shares
Underwriters — F. Eberstadt &

D.. C.

80,000 shares of $1.12% cumulative con-,
vertible preferred stock, series A
(par $20).
Under-"

will be

be underwritten.

By amendment.
rily postponed.

for

14 filed

common

| will sell 130,000 shares to the public through the under-?

!.£ ferred stock of Pacific, the surviving corporation. Offer¬
ing price—To be supplied by amendment,

—From company's 100,000 shares
proceeds will be used//
to reduce outstanding bank loans and commercial
paper"
and for other corporate
purposes.

Aug.

July 10 filed 100,000 shares ($100 par) preferred stock.
Reynolds Pen Co., Chicago
Underwriters—By amendment. Probable bidders include
May 4 filed 400,000 shares of common stock (no par),:
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney &
Co. (jointly); The First Boston Corp., W. C. Langley & Co.; / of which 100,000 shares are being sold by company and
Harriman Ripley & Co.
Offering—Company proposes to
300,000
by
stockholders.
Underwriters—Names
by ■
issue the 100,000 shares of new preferred for the puramendment. Offering—Terms by amendment. Proceeds
—Net proceeds to the company will be added to working
pose of refinancing at a lower dividend rate the 67,009
outstanding preferred shares of Pacific and the 47,806
capital.
preferred shares of Northern Electric Co., in connection
Rheem Manufacturing Co. >
with the proposed merger of Northwestern into Pacific.
June 26,1946 filed 200,000 shares ($1 par) common stock.
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged
Underwriters—Blyth & Co., Inc.
Offering—Company

proceeds

Co., Washington,

Pacific Power & Light Co., Portland, Ore.

Finance

its

use

ing 140,000 issued and outstanding shares. - Company is
offering 100,000 shares.
Price by amendment. Proceeds

issue 454,465 shares of common stock only, which will be
offered for subscription to stockholders of record Sept.!

The

y.;,/■v..-

common stock (par $1).
Underwriters—Van Alstyne, Noel & Co., and
Johnston,!/
Lemon & Co. * Offering—Certain stockholders are sell¬

not

selling 50,000 shares.

are

its proceeds for equipment.

use

will

Seaboard

5 to the extent of one share for each five held. Issue will

shares and stockholders

Company
purposes.

pro¬

Registration originally filed July 31 covered 184,821
shares of $1 cumulative convertible preferred ($10 par)
and 277,231 shares (50c par) common stock, with Sterling,
Grace & Co. as underwriters.
Company has decided to

;

July 22 filed 75,000 shares of $1.50 par common. Under¬
writer—Elder, Wheeler & Co.
Offering—Price $8 a
share.
Proceeds—Of the total company is selling 25,000

warrant,

corporate

finance business,

Aug. 16 (letter of notification) 199,000 shares (50c par)
common and warrants for purchase of 125,000 additional
common.
Offering—Price. $1.50 a common share and

O'Okiep is to effect such

shares of

Rock Bott I ingCo.of Youngstown,

vv1Warren, O.

■

ordinary share of O'Okiep for each 10 shares of
Newmont held. Primary purpose of the offering of
one

106,329 American

cents

general

Aug. 29 filed 240,000 shares of

Aug. 23 (letter of notification) three-year warrants for':
purchase of 100,000 shares common stock (par 500) at
$1.50 a share; not assignable or exercisable before July

106,329 American shares representing a
of the par value of

filed

registration-for sale to employees, officers and directors;
at $5 a share. The
company also is selling 200,000 stock
purchase warrants to executives of the company at 50

•

Ltd. of the Union

O'Okiep Copper Mining Co.
July

struction of space for executive offices in the economy:
baler plant, and the balance will be deposited"with gen-/
eral funds.
«

Thursday, September 5, 1946

Publications, Inc.

Under*
offering /
part of the holdings of the present stock¬

July 17 filed 197,500 shares of common stock.
writers—Glore, Forgan & Co.
Offering—The

represents a
Indefinitely postponed.

holders.

Sun Chemical Corp.,

New York

.,.

(9/6)

July 31 filed $4,000,000 2%% sinking fund debentures,
due Aug. 1, 1966.
Underwriter—Shields & Co. Price by
amendment.
Proceeds—Net proceeds to be used in part
to redeem

19,000 shares of outstanding $4.50 preferred

stock, Series A, 1,050 at the sinking fund

redemption

•Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

4522

" Number

Velvet

price of $103.50 and the remaining 17,950 at the optional
redemption price of $106.50 a share, plus accrued divi¬
dends in each case. The balance of the net proceeds will

be added to general
•

Sun

(9/16)

Chicago

held. Rights expire Sept. 27. Unsubscribed shares will be
sold to underwriters.
Price—By amendment. Proceeds—

?
Underwriter, none.
Stock will be sold by company's
/officers to employees and business acquaintances. Pro-,'
ceeds—For working capital, purchase of machinery and

•

Trenton, N. J. (9/16)

195,000

common

(9/24)

Fla.

Aug. 27 filed $7,500,000 first mortgage bonds, series due
1976.
Underwriter—Goldman, Sachs. & Co.
Price by
r

amendment.

;

Proceeds—To

and to finance
*

V \f<

•

prepay

2 3A% promissory

Equitable Life Assurance Society of the U.

note to

' [

;,r t *

♦

i \

S.,
vl

the

•

White

July 12 (letter of notification) 44,300 shares of ($5 par)
cumulative convertible preferred stock and 44,300 shares
common stock (par 50c).
Offering—Price $6 a share for
preferred and 75 cents a share for common. Underwriter
tAmos Treat & Co.
Proceeds—For payment of notes,
mortgages and for general corporate purposes.

Mayonnaise Co.,

underwriting.

Stag Mfg. Co.,

(9/17)

Aug. 29 filed

Under¬
amendment.

underwriter.

Louisville,

Ky.

For retirement of bank
N

Portland,

Ore.

...

75,000

shares $1 cumulative convertible
preferred stock ($20 par) and 50,000 shares common
stock (par $1).
Underwriters—First Colony Corp. and
Childs, Jeffries & Thorndike, Inc.
Offering—Company
is offering 75,000 shares of preferred; the 50,000 shares

•

common

are

outstanding and being sold by four in¬

dividuals for their

own account.
Price by amendment.
Proceeds—Proceeds from the sale of the preferred stock

share and accrued dividends,

1,386 shares of second preference stock at $100 a
and accrued dividends.
The balance will be

and sound distribution

White's Auto Stores, Inc., Wichita Falls, Texas
:V;

will be used to provide funds for a

wholly-owned sub¬
sidiary, retire loans from banks and from White's Em¬
ployees Profit Sharing Trust, and for additional working
capital.
-i
1
>->

funds. Business—Manufacture of ignition transformers and fuel units for oil
burners and related industries and intercommunication

Price,

Aug. 26 (letter of notification) $300,000 4fy% cumulative
preferred stock.
Underwriter—Conrad, Bruce & Co.
Offering—Price $100 a share.
Proceeds for additional
working capital.
•

/ and

Boston.

(9/16)

common.

loans and expansion program.

added to general corporate

Taylor-Graves, Inc., Saybrook, Conn.

shares held.

proceeds to redeem 645 shares of its prior

will

preference stock at $110
and

elsewhere in Connectiut.

amendment.

company

amounts

Co.,

(no par)

(letter of notification) 10,000 shares ($5 par)
common, to be offered for subscription to stockholders at
$10 a share in the ratio of one share for every five

by shareholders.
The respective
supplied by amendment.
Price by
Proceeds—Company will use about $210,-

000 of its net

j $26.50. Underwriter — Putnam & Co., Hartford. The
^ shares initially will be offered for subscription to pres¬
ent stockholders. Unsubscribed shares will be offered
\ to the public. Proceeds—Company will use proceeds for
construction of a new foundry in Windsor, Conn., or

preferred

Aug. 16

Webster Electric Co., Racine, Wis. (9/23)
Sept. 3 filed an unspecified number of shares of com¬
mon stock (par $1).
Underwriting—Loewi & Co., Mil¬
waukee.
Offering—The shares are being sold both by

(letter of notification) 11,250 shares of 4.32%
.cumulative convertible preferred stock.
Offering—Price

Wheatley

;

/•

».

Taylor & Fenn Co., Hartford, Conn.

by Allen & Co., New York, with Shea

•

Proceeds—Shea & Co. is selling 26,400 shares for its own
account and the remaining 20,000 shares are being sold

construction program.

Aug. 30

writer—Shea

Virginia Dare Stores Corp., N. Y.
July 3 filed 90,000 shares of 5% cumulative convertible
preferred stock, ($10 par).
Underwriters—Newburger
& Hano; Kobbe, Gearhart & Co., Inc., and D. Gleich Co.
Offering—Underwriters propose to offer the shares in
part to the public and the balance to certain dealers,
among whom any underwriter may be included, at the
public offering price, less certain concessions. Price $10
per
share. Proceeds—It is presently anticipated that
$437,500 will be used to acquire the capital stock of Wil¬
liams Stores, Inc., and Levitt Millinery Co.
The bal¬
ance
will be applied to general corporate purposes.
Issue temporarily postponed.
,

Tampa Electric Co., Tampa,

Aug. 6 filed 46,400 shares

v,..

West Virginia Water Service Co.

Co.

Manufacturing

common

To reduce bank loans.

■

stock (par $1).
Underwriter—?C, K. Pistell & Co., Inc. - Offering-r-Com^
pany is selling 45,000 shares, and eight selling stock¬
holders are disposing of the remaining 150,000 shares.
'Price—$10.50 a share.
Proceeds—From 45,000 shares
sold by company will be applied to working capital
; initially.
Business—Operates general department store.
.Aug. 28' filed

Vernan

stock

ratio of Va share for each share of

(Inc.), Johnstown,
Pa.
''////. //yyV.
y
Aug. 29 (letter of notification) $50,000 41/2 % debentures.
Due 1946.
Offering—Price $500 a unit. No underwrit¬
ing^ For expansion of business.
1
j ■<.
\

Swern & Co.,

for subscription to holders of outstanding pre¬
and common stock of record Sept. 10 in

ferred

Sherck, Richter & Co., and Straus & Blosser. Offering—
Of the total, 200,000 shares will be sold through the
underwriting group at $8.50 a share, and 3,500 shares
will be offered to certain employees at $7.50 a share.

Aug. 28 filed 7,000 shares (par $100) 6% preferred stock.

equipment.

offered

Inc.

July 24 filed 203,500 shares of stock which are to be sold
for the account of certain stockholders.
Underwriters—

funds.

Electric Corp. of

Freeze,

1303

equipment and apparatus.

Willett

(Consider H.),

Inc., Louisville

(9/9)

;

H.. /
Aug. 21 (letter of notification) 20,000 shares ($5 par)
common.
Underwriter—Bankers Bond Co., Louisville.
July 15 filed 200,000 shares ($25 par) $1.20 cumulative
Price $15 a share. Proceeds will be used to install con¬
pfd. stock, 100,000 shares of ($1 par) convertible stock
'**'%'
''
,0!
~
%
^' ,•» ~1>,
f
and 650,000 shares ($1 par) common stock. Underwriters
veyor systems in two plants, for new machinery and
Tele-Tone Radio Corp., New York
—Blair & Co., Inc., Reynolds & Co., New York and Max¬
working capital.
'
,
Aug. 1 filed 210,000 shares of common stock (par 50
well, Marshall & Co., Los Angeles. Offering—The pre¬
:•• Winters & Crampton Corp., Grandville, Mich.
cents).
Underwriters—Hirsch & Co.
Offering—Comferred and convertible stocks will be offered in units of
!" pany is offering 75,000 of the shares registered.
Eleven f- one share of preferred and one-half share of convertible.
Aug. 28 filed 119,337 shares of common stock (par $1).
stockholders are selling 135,000 issued and outstanding
Underwriter—E. H. Rollins & Sons, Inc.
Offering—.
> Price by amendment. Proceeds—Weetamoe Corp. (Name
shares, for their own account.
Offering—Price $6.75 a
to be changed to Nashua Manufacturing Co. prior to
Company is initially offering the stock to its common
share.' Options—Selling stockholders are also selling to
effective date of registration) was incorporated June 27, % holders at the rate of one share for each two shares held.
: the underwriters at 7 cents per option warrant options to
Price by amendment.
*1946 to acquire the operating properties and certain
Proceeds—To retire a conditional
purchase 18,000 shares of the issued and outstanding
sales contract obligation held by the
other assets of Nashua Manufacturing Co. which was
Reconstruction
common owned by them.
They are also selling to HallFinance Corp., pay off bank loans of $600,000, and for
Incorporated in 1823. The new company was organized
\ garten & Co., for $1,500, plus $360 as a contribution
at the instance of Textron, Inc., and is wholly-owned
| working capital.
;
<
v
~ v
/
1
, •. *
'<■
toward the expenses of issuance, options to purchase an
subsidiary, Textron Mills, Inc., which are promoters of
/ additional 18,000 shares of the issued and outstanding
Wisconsin Power & Light Co., Madison, Wis.
the new company. Net proceeds, together with $2,300,000
i common.
Proceeds—Net proceeds for the sale of comrepresenting the proceeds from the sale of 50,000 shares
May 21 filed 550,000 shares ($10 par) common stock to
pany's 75,000 shares will be used for increasing working
of convertible stock to the underwriters and 525,000.
be
sold
at
competitive bidding.
Underwriters—By;
} capital, with a view to entering the Frequency Modulashares of convertible stock to Textron, Inc., at $4 a share,
amendment.
Probable bidders include Merrill Lynch,
< tion and Television fields at an advantageous time.
■
| will be used as follows: approximately $13,000,000 for
Pierce, Fenner & Beane; White, Weld & Co.; Glore,
payment of a portion of the purchase price of the assets
Forgan & Co., and Harriman Ripley & Co. (jointly);
United States Shoe Corp.^ Cincinnati, Ohio
to be acquired from the old company, about $100,000 for
The Wisconsin Co., and Dillon, Read & Co.
ProceedsAug. 25 filed 24,000 shares ($4 par) common. Under¬
Part of the shares are to be sold by Middle West Corp.,
organization expenses, and about $1,100,000 for working
writer—Benj. D. Bartlett & Co., Cincinnati. Offering—
capital.
top holding company of the System, and part by prefShares will be offered to the public by seven stockerence stockholders of North West Utilities
Co., parent
Western Tin Mining Corp., Washington, D. C.
holders, who will receive the entire net proceeds.
of Wisconsin, who elect to sell such shares of Wisconsin
August 16 filed 315,185 snares (one cent par) common
Price by amendment.
; ;
common which will
be distributed to them upon the
■:/
.
stock. Underwriter—No underwriting. Offering—To the
.

Weetamoe Corp., Nashua, N.

•

public. Price—$1 a share. Proceeds—To do geographical
work on tract of land for exploration of tin ore. Business

Upper Michigan Power & Light Co., Escanaba,
Mich.
T

—Development of tin prune.

'July 18 (letter of notification) 5,500 shares of 4V\% first
^preferred stock series B ($50 par). Offering price, $50
a share.
Underwriter—First of Michigan Corp., Detroit.
Proceeds—For enlargements and improvements
;

plant facilities.

Westinghouse Electric Corp.
~

of power
'

dissolution
•\

World

West

North

Co.

Utilities

Investment Trust,

Boston

//,•/,/>-

Sept. 3 filed 200,000 shares of beneficial interest, $1 par
value.
Underwriting—Furst & Co., Boston.
Price at

(9/28)

Aug. 14 filed 1,647,037 shares ($12.50 par) common.
Underwriter—Kuhn, Loeb & Co. Offering—Stock will be

market.

Proceeds—For investment.

Business—Invest-

/ ment house.

Prospective Security Offerings
(NOT YET IN REGISTRATION)
•

Airborne

/.Corp.
'

Air

Cargo Lines, New York

Aug. 12 with change of name from Hoosier

Air Freight

additional financing for purchase of

planes expected, with Greenfield Lax & Co.

? derwriters.

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

additional
Inc. as un-

Commuting,

Inc.

;

July 16 possibility of same new financing seen if the
Civil

Aeronautical

made by two

tablish

Board

approves

recommendations

of its examiners of company's plan to es¬

extensive airplane commuting service

radiat¬

ing over the New York City metropolitan area of West¬

chester County, New Jersey,

Staten Island, Long Island

and Connecticut.

;

Transvaal Corp.

American Anglo

Ladenburg, Thalmann & Co. and Lazard
announced Aug. 13 that they are forming

Freres & Co,
the American

Anglo-Transvaal Corp., a $20,000,000 company, for the
further expansion of mining and industrial activities in
the Union of South Africa. The two New York concerns
have invited Lazard Brothers
& Co. and J. Henry
Schroeder & Co.,

both of London, to participate in the

subscription of an initial capital of $9,000,000 for the new,
company. Operations of the new company will be man¬
aged by the Anglo-Transvaal Consolidated Investment
Co., Ltd., under the general direction of the board of di¬
rectors of American

Anglo-Transvaal, composed of rep¬

resentatives of the New York, London
interests.

and South African
'./.-

,:'•••/

•

American Bosch Corp.

April 16 reported that Alien Property Custodian may
shortly ask for bids on 535,000 shares, (77.24%) of the
stock of the corporation.
Probable^ bidders include
Glore, Forgan & Co. and Lehman Brothers (jointly),
and Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner
fContinued

naffe

1304)

--V-

THE COMMERCIAL & FINANCIAL CHRONICLE

1304

(Continued from page 1303)

; ; consultants, and his associates offered to

•,

(1) rent the

outstanding

lines for 40 years

& Beane

The Wallenberg financial interests
of the stock now vested. in Alien
Property Custodian, have brought suit to recover the
stock or the proceeds thereof,
(jointly).

of Sweden, owners

■

•

American Power & Light Co.

Aug. 7 reported
•in

future

company expects to

file with the SEC

plan for retirement of its preferred
stocks which would include the sale at competitive bidy
near

ding of 15% of the common stock of each of the follow-,
ing subsidiary companies: Florida Power & Light Co.,
Kansas Gas & Electric Co., Minnesota Power & Light
Co., Montana Power Co', and Texas Utilities Co.
American
:

Progressive Health Insur. Co., N.

Oct. 16 stockholders will vote on creating a new issue
of convertible debentures not to exceed $351,000,000, and
on

increasing the

authorized

million to 35 million.

common

from 25

Debentures would be offered to

shareholders in proportion of $100 debentures for each
six shares held.
Up to 2,800,000 shares of stock may be
issued and sold to employees.

(Sidney)

*•

in the ratio of

one new

for each two shares held.

;

Offer¬

a small, .lowautomobile, announced that it would move its
plant from San Diego to Birmingham, Ala. Said Company proposes to lease the Becntel-McCone plant in
Birmingham from the War Assets Administration. Com¬
pany proposes to finance its expansion through the issu¬
ance of capital stock. Reported Floyd D. Cerf Co., Chi¬
cago may be underwriters.

priced

•

Booth

(F. E.)

Co., Inc.

would

Probable

favorable.

are

underwriter,

■-

•

needed.
•
'

•

Babbitt

(B. T.),

3 reported
300,000 shares of

Sept.

Inc.

Stone &

Ohio

;

programs may then crystallize, the Baltimore & Ohio is
named as a leading prospect, now that all barriers to
the consummation of its $500,000,000 debt adjustment

plan have been eliminated. Other portions of the debt
now thought to be attractive possibilities for a refinanc¬
ing operation besides the $76,900,000 of first mortgage
4s and the $67,800,000 first mortgage 5s.
There are
$37,200,000 of Southwestern Division 5% bonds, $36,800,©00 Pittsburgh, Lake Eriti & Western 4s, and
$10,000,000
Toledo-Cincinnati Division mortgage series A 4s.
Prob¬
able bidders, if refunding operations
crystallize, are
Kuhn, Loeb & Co., and HMsey, Stuart & Co. Inc.

■

•

Coty,
It

"/".I-'

reported

company intends
stock in near future.

that

sell

20,000

Chicago

underwriting is contemplated at a future
date of probably $200,000 debentures and 156,000 shares
of common stock (par $5).
J
^:y';;
Detroit Edison Co., Detroit, Mich.
16

March

committee

directors

formed

consider

refinancing of $65,000,000 3M>s and 4s. Probable bidders
include: First Boston Corp., Dillon, Read 3c Co* Inc.,

reported that a refunding of the $21,-

Coffin 3c Burr,

Halsey, Stuart 3c Co., Inc., ^nd Spencer

Trask & Co.

Dl Giorgio Fruit Corp.

September 5 -stockholders Will consider
a new

a plan to create
class of non-participating preferred stock, $3 cum¬

ulative and junior to the present $3 cumulative

partici¬

pating preferred in respect to both dividends and assets.
It is planned to offer present preferred stockholders an
opportunity to exchange their shares for shares of such
new preferred and class B common stock on the basis of
one share of new preferred and one share of class B com¬
mon for each share of outstanding $3 cumulative partici¬
-

Dow Chemical Co.

May 29 reported Estes, Snyder & Co., 'may underwrite
offering of common stock following merger of Century
and Continental Geophysical Service Co.
/

opments when arid if the merger of Chesapeake 3c Ohio
Ry. and the Pere Marquette Ry. is approved will be

refunding operation to take in the debt of both roads.
O., it is expected, will take steps to, refinance the
■refunding and; improvement 3%s, due in 1996, of which
$37,500,000 series D and $27,600,000 series E were outstanding at the close of 1945. The Pere Marquette has '
a

C. &

constructed during the war by the government at a cost of

Aug.

August 6 company has authorized new plants and addi¬
tions costing an estimated $40,000,000 over the next
three or four years. Probable underwriters of any new
issues include Smith Barney 3c Co.
f

Chesapeake & Ohio Ry,

gas producers . were amongst the ' 16
bidders who submitted bids to the War Assets Adminis-

E. Holley Poe, head of natural gas

;

Inc.

shares of treasury

June 18 reported that probably One Of the early devel¬

Leading, natural

about $145,000,000.

underwriter.

pating preferred.

; tration for the "Big" and "Little Inch" pipelines
.

Century Manufacturing & Instrument Co.

equal amount of bonds under new mortgage, through
competitive bidding.
Probable bidders include Harri¬
man, Ripley & Co., Inc.; Lee Higginson Corp., and
Halsey, Stuart & Co. Inc.

Corey Corp.

(
Carolina Power & Light.Co.
/
...
'
Aug. 8 Electric Bond & Share Co. will probably offer
420,000 shares of Carolina Power 3c Light Co. common
stock for sale at competitive bidding, which will accrue
to Electric Bond & Share pursuant to the plan for dissolution of National Power & Light Co. Probable bidders
include Morgan Stanley & Co.; Dillon, Read & Co. Inc.,
W.
C. Langley & Co. and The First Boston
Corp.
(jointly); by Smith, Barney & Co., Blyth & Co., Inc.,
and Kidder, Peabody & Co. (jointly).

;

For the purpose

Culver Corp.,

Bangor & Aroostook RR., Bangor, Me.
April 16 stockholders authorized new mortgage. Com¬
pany contemplates refinancing one-third of outstanding
funded debt (Dec. 31, 1945, $12,665,000) through sale of

"Big" and "Little Inch" Pi pel in es.

was

series.

and

shares of

2,200,000

Aug. 29 reported that plans were under way to register
177,000 sharjes of common stockholders on behalf of sell¬
ing stockholders, with Glore, Forgan 3c Co. as principal

400,000 first mortgage 4% series A bonds of 1965 is seen
as a possibility/ Probable bidders include Kidder, Peabody & Co.; Halsey, Stuart & Co. Inc.

of bond refundings. Among the roads whose
refinancing

•

Carolina, Clinchfield & Ohio Ry.

June 26 it

ley 3c Co.

RR.

was

authorize

authorization of new

Buckeye Incubator Co.

reported that one effect of the railroad
freight rate adjustment is expected to be a stimulation

when

will

of saving taxes on the
shares, it is proposed to reclassify
811,110 shares of old preferred stock and 1,388,890 shares
of common stock, which are authorized but unissued,
into the 2,200,000 shares of new preferred.
Company
plans to issue approximately 2,000,000 shares of lhe: new
preferred at not less than $100 a share.
The precise
method of refinancing the present $5 preferred stock
and of issuing new shares of preferred has not been
determined and will depend on market conditions pre¬
vailing at the time of issue.
If approved these steps
would be undertaken after completion of $290,000,000
bond refunding. Probable bidders include Morgan Stan¬
or

Aug. 20 stockholders voted to increase authorized com¬
mon from 250,000 to 300,000 shares (par $2). The addi¬
tional 50,000 shares will be offered for sale subject to
preemptive rights of stockholders, at such times and in
such amounts as determined by directors.

underwriters.

Baltimore &

stock

stockholders

cumulative preferred stock to be later issued in one

new

early

registration expected of some
common stock, of which 50,000 shares
on behalf of the
company and 250,000 on behalf of sell¬
ing stockholders.
Lehman Brothers, Goldman, Sachs &
Co. and Wertheim & Co. are reported to be the principal

June 22 it

common

Consolidated Edison Co. of New York, Inc.

Oct.

additional 450,000
new capital is
Probable underwriters, Hincks Bro. & Co.;
Webster Securities Corp.; Hornblower & Weeks

April 23 stockholders voted to issue

Smith,

its

call

$179,240,000 of callable mortgage
discharge of mortgages covering $15,869,000 of non-callable bonds.
In another part of the
plan the company proposes to refinance the outstanding
2,188,890 shares of $5 cumulative preferred stock. Prob¬
able bidders include Morgan Stanley & Co.; Halsey,
Stuart & Co. Inc. (bonds only), and Blyth & Co., Inc.

ditions

then

bonds and obtain

Aug.; 28 The California, Corporation Commissioner authorized company to offer a new $4 cumulative preferred
stock on a share for share exchange basis for its $3
Atlantic City Electric Co.
', cumulative preferred, on which accumulations are $14.75
July 9 the offering of 1,150,000 shares of common stock
a share.
Redemption and liquidation price of the new
(now owned by American Gas & Electric Co., parent)
issue will be $65, against $55 for the present shares.
seems probable in the Fall, in compliance with the Utility
Holding Company Act. Probable bidders > include The
Boston Store, Chicago
•
First Boston Corp.; Blyth & Co., Inc.; Harriman, Ripley
July 15 ownership of the Boston Store changed hands
& Co.
formally when a syndicate headed by Edgar L. Schnadig,
Chicago, purchased all of the capital stock of the operatAtlantic Refining Co., Philadelphia
ing company, the Boston Store of Chicago, Inc., and cer¬
May 7 stockholders approved proposal to increase the
tain real estate rights for $14,000,000.
Funds for the
company's indebtedness from time to time by additional
purchase, in addition to the syndicate's own money,
amounts not in excess of $50,000,000 in aggregate. The
were
furnished by a secured loan of $3,500,000 from
purpose of the plan, it was said, is to place the company
Penn Mutual Life Insurance Co., a long term loan of $1,In a position to fund bank loans, add to working capital
500,000 from the First National Bank, Chicago, and $5,and to provide funds for capital expenditures. Probable
1000,000 in a short-term loan from the Union Securities
toderwriters include Smith, Barney & Co.
Co., New York. To retire the short term loan the com¬
pany, it is said will issue preferred and common shares
Atlantic Refining Cc.
to be sold publicly through a syndicate headed by Paul
Nov. 1. stockholders will vote on authorizing 650,000
H. Davis & Co., Chicago and Stroud 3c Co., Philadelphia.
shares of new preference stock (par
$100), of which
; r
an undetermined amount will be sold when market con¬
Bridgeport (Conn.) Brass Co.
Barney & Co.

Consolidated Edison Co. of New York, Inc.
i
July 3 company formally submitted to the New York
Public Service Commission its plan to issue $290,000,000
of new mortgage bonds as part of a plan to redeem
$304,240,000 of callable mortgage bonds and debentures
and $15,869,000 of non-callable mortgage bonds due in
1948 and 1949—a total of $320,109,000 of long-term debt.
The $290,000,000 of new mortgage bonds would be sold
by bidding in three separate issues in rapid succession^
the first two to be $100,000,000 each and the third for
$90,000,000. After issuing the first series the company

Bobbi Motor Car Corp.

Arkansas Power & Light Co.,

New York

Citizens Utilities Co.

Aug. 27, corporation organized to produce

Probable underwriters E. H. Rollins & Sons.

Co.,

July 24 company is negotiating with investment bankers
relative to the sale of a new long-term first mortgage
bond issue, with which to retire $4,200,000 bank loan
obtained to retire the 5Vz% bonds of 1948, called for re¬
demption Sept. 1, 1946,

ing will not be underwritten.

;;

Service

July 17 it is suggested that when and if the outstand¬
ing debt is retired through proceeds of its utility equities;
that preferred stockholders might be offered a new 4%
preferred in exchange for the old issues, in the amount
of call prices plus arrears (approximately $113,486,250).

& Co., Inc.

)

first
mortgage bonds, proceeds from the sale of which Would
be used to redeem first mortgage 4% bonds, 1994,r
is expected to be postponed until late this year. Earlier
plans were for the retirement of the bonds July 1.
Three investment banking groups were set up to enter
competition for any new offering, viz.: Kuhn, Loeb &
Co.; The First- Boston Corp./ and Halsey, Stuart & Co./

Sept. 19 stockholders will vote on increasing authorized
common stock from 250,000 shares to 500,000 shares (no
par).
Approximated 119,706 new shares would be of¬
fered for subscription to stockholders at $10 per share

Apex Electrical Manufacturing Co.

Little Rock, Ark.;
March 30 reported company planned to issue 290,000
shares common; stock (par $12.50) and $5,000,000 in
promissory notes, for purpose of paying current promis¬
sory notes and finance expansion program.
Probable
bidders include Dillon, Read & Co. Inc.; The First Bos¬
ton Corp., and Blyth & Co., Inc.
•

Chicago Milwaukee St. Paul & Pacific RR.
Issuance by the road of $58,900,000 lower-coupon

Cities

Blumenthal

Aug. 26 stockholders approved a plan which provides
for changing each share of outstanding common stock
(no par) into four shares of $1 par value.
Company
would then have outstanding 340,000 shares of common
stock. In addition, company proposes to create a new
issue of 110,000 additional shares of common stock and
40,000 shares of cumulative preferred stock ($50 par),
which will be offered for sale through underwriters.

the Pere Marquette issue would be undertaken promptly;
following consummation of the merger.
;j
■ ' ^:

(1) on authorized refund¬
ing of $3 cumulative preferred stock with new issue of
■150,000 shares of convertible preferred, to be issued in
series; (2) on changing par of common from no par to
$3 par; (3) on splitting common on a two-for-one basis.
An initial series of 30,000 shares of preferred will be;
offered publicly to refund $3 preferred and working
capital. Probable underwriter, Van Alstyne, Noel & Co.

series

3%s,

proposal, W. H, Wenneman stated that refinancing of

•

Blauner's, Philadelphia

$59,749,000 first mortgage

due in 1980. At the ICC hearings" in April on the merger

Oct. 8 stockholders will vote

—

American Telephone & Telegraph Co. ;.

at $6,500,000 a year—a total of $260,000,000—or (2) purchase the lines for $80,000,000 with
"a potential additional deferred payment of $20,000,000,
depending upon the gas earned by the lines." It also
was said that the banking firm of Dillon, Read & Co.,
Inc., would head a group of underwriters for the public
offering of stock incidental to the financing.
The Big Inch Nafural Gas Transmission Co., of which
Robert J. Bulkley, former United States Senator from
Ohio and sponsor of the Natural Gas Act, is President,
offered to pay $85,000,000 cash for the lines. Halsey,
Stuart & Co., Inc., and Otis & Co., it is said, would head
the syndicate which would underwrite the securities.
V' Both Offers ^agreed to maintain the lines for immediate
reconversion to oil delivery in case of a national emer¬
gency.

Sept. 4 expected filing by notification-at early date for
60,000 shares 30c participating preferred stock, to be
offered at $5 per share with B. G. Cantor & Co. as
underwriter.

Thursday, September 5,1946

t-.y+ii

r. t\

\-i

x-,>

tb'.'ly

•
;

Duluth,

Missabe & Iron Range Ry.

Sept. 3 coiripany, a subsidiary of the United States Steel
Corp., is planning to issue $19,200,000 of serial bonds
maturing over 16 years, In connection with the retire¬
ment on Nov. 1 of the road's first mortgage 3V2S of 1962.

competitive bidding.1
Morgan, Stanley 3c Co.

Bonds will be sold through

able bidders include

1 't

<w-

Prob«*

J.'*

{' ''

'" "

[Volume 164

{//

-J^w^ **//

>f * ^

*■ I '

'■

,i\«

'■ ■'}

V:VC,/

Number 4522

•'.

-v

. .

THE COMMERCIAL & FINANCIAL CHRONICLE

1305

Le Danne Footwear
now * •
Inc., Boston
'
;
exhaustive budget study to determine what;' Sept. 4
expected early filing by notification of 59,500
additional capital will be needed to finance an expansion
shares .of 35c/cumulative
preferred stock and 59,500
program..//.
•'
;. •,-*:/' ;• 7 •; ■ y //...
shares of common
/ • .
stock, to be offered in units of one

Eastern Stainless Steel Corp., Baltimore:////>: before September, The management, it is said, is,

'Aug. 20—The management contemplates filing in the' / making
future

near

registration statement covering an addi¬

tional 64,000 shares of stock, to be offered to present;,
stockholders in the ratio of one share for five. Negotiant

share of each of $5

//,;/

Gulf States Utilities Co.
'
:??/•?/ ?' New
tions are proceeding with a group of
underwriters "
York,
May 24 in connection with plan of dissolution of Engin¬
headed by Kidder, Peabody & Co., for the purchase of
ladies' shoes.
eers Public Service
Co. part one of the plan calls for
shares not subscribed by stockholders.

Ekco Products Co.

^^"';.v''v.•

reclassification

plan to creates a ;

The

Gulf

issue of" $7,500,000

new

stocks

common

two

subsidiaries,;;

Gulf States Utilities Co. and El Paso Electric Co., and fortheir distribution to Engineers common stockholders.

>..;■>///:;//

Sept.; jS, stockholders, will consider

Utilities

States

stock

would

•

distributed

preferred stock and to increase V
through issuance of rights.
/>/•':;y.ryi/
1,500,000 shares
to permit a two-for-one split of outstanding common
Henke & Pillot, Inc.
'■
y': /
stock. It is proposed to offer publicly $6,000,000 of new
Aug. 7 company advised that it will probably do some*
convertible preferred and 40,000 new common shares, c financial in the near future but that no definite
plan
Union Securities Corp. is expected to head the under¬
has as yet been formulated.
•'///- y
" writing group. Part of the proceeds from the financing
will be used to retire *4%% preferred stock at $110 a
Illinois Power Co., Decatur, III.
share, and the remainder will be added to general funds
July 2 company has filed a recapitalization plan with SEC
to replace amounts spent for new plants and equipment*
pursuant to Section (11) E of the Utility Holding Com¬
authorized

stock from 750,000 to

common

!,//??/7/f/:./'

Act.

•

El Paso Electric Co.

(

Sept 3 company,

subsidiary of Engineers* Public Serv¬

ice

Co., Inc., is considering refunding its $6,500,000 first
mortgage 3%% bonds, series A, due 1970. Present plans
call for the issuance of new 30-year first mortgage
bonds, with the interest rate to be determined by com¬
petitive bidding; ! Among the banking firms Expected to
form groups to bid for the bonds are Halsey, Stuart &
Co., Inc., and Stone & Webster Securities Corp.

Empire District Electric Co., Joplin, Mo.
May 3 company filed application with the Arkansas P. S,
278% first 7

version into

common

basis of two shares for

mortgage bonds due in 1976. Proceeds would be used for

additions and improvements to the company's properties
In Missouri, Arkansas, Kansas and Oklahoma. Probable

order to sell the amount of

bidders include The First Boston Corp.; Halsey, Stuart

Engineering & Research Corp.

June 14 reported company, manufacturer

of air

contemplates the issuance of 300,000 shares of

stock, with Hemphill, Noyes & Co. as underwriters;

lower-cost

new

clude Lehman

securities.

underwriters

Probable

company announced agreement

;

trol of two Cuban Airlines.

low-grade

San. Manuel

• i

Hopkinson, Jr., Drexel & Co. attorney, expressed
can

mar¬

natural-gas
pipe line. ;' The company completed direct testimony
Aug. 19 before a Commission examiner on its application [
to build a $48,000,000 line from the
Hugoton Field of;
Texas and Oklahoma.
Mr. Hopkinson said it
might be
possible to reduce from 374% to 3% interest on $30,000,20-year first mortgage bonds which the company ;
Initial financing as outlined by the company also

would include

$17,000,000 of common stock. Fourth year i
financing would call for issuance of $14,000,000 of 5%
preferred stock to be retired through a sinking fund
/over 20 years and $12,000,000 in 3.14%, first mortgage/
bonds.

Mid-Valley Distilling Corp., Archbald, Pa.

in¬

August 7

Brothers; Blyth & Co., Inc., and Halsey,

near

company expects to file a registration statement
future covering an issue of stock, with E. F.
Gil-;

lespie & Co., New York, as underwriter. The proposed
offering under Regulation' A Filing has been withdrawn.
Missouri Public Service Co.

Aug.

27 reported company plans to issue $750,000 of
27/8% 30-year first mortgage bonds. Proceeds to be used
for improvement of plant facilities.
May be placed

provisions of the amended
/ privately.
Probable bidders include the First Boston Corp.;

plan.

to acquire con¬

company's large
body in Arizona.

Pipeline Co.

Stuart & Co. Inc.

S. A.

the

ket its securities to finance construction of

the company to carry out the

Inter-Americano,

the opinion at a hearing before the Federal Power Com-'
mission that Michigan-Wisconsin

Expreso Aereo

July 27

Edward

000 in

Aug; 9 expected early filing (by notification) of 59,500/
$1)
common
stock.
Offering
expected
Interstate Power Co. (Del.)
at $5 per share with B.
G. Cantor & Co. as under¬
May 21 pursuant to amended plan filed with SEC comwriter.
Company
is
an
18-year-/ old radio ■ manu¬ 7 pany proposes to sell through competitive bidding $20,facturer. It manufactures radios under private brand*
000,000 new first mortgage bonds and such number of
names, i.e. Macy's, Bloomingdales, Spiegel, &c.
3,000,000 common shares as may be necessary to enable

shares : (par

Michigan-Wisconsin Pipeline Co.

plans.

Indianapolis (Irid.)/Power & Light Co.
was reported that company probably will
replace its $32,000,000 first 3y4S due May 1, 1970, with f

Espey Manufacturing Co., Inc., N. Y.

Probable underwriter, Allen & Co.

copper ore

?! April 24 it

coupes,

common

ment

Probable

include Merrill Lynch, Pierce, Fenner &
Beane; Otis & Co., and the First Boston Corp..

Shields & Co. and Lehman Brothers. |

shares will be offered to stockholders at
prices and
amounts to be determined by directors. The
purpose of
the financing is to provide for development and
equip¬

stock needed to pay

conversion.

Magma Copper Co.
Aug. 29 stockholders voted to increase the authorized
capital shares to 1,200,000 from 410,000. Of the ad¬
ditional
790,000 shares,
between
200,000 and 250,000

one. *

underwriters

& Co. Inc.;

common

..■»«/

•

underwriting will be arranged for the conversion in

off the preferred not tendered for

Lytton's, Henry C. Lytton & Co.

expansion.

The

Commission for authority to issue $2,000,000

per unit, with B. G. Cantor & Co.*
underwriter.
Company manufactures

Aug. 28 stockholders voted to create an authorized issue
of 100,000 shares of preferred stock
(no par) issuable in
series and increased authorized common
(no par) from
500,000 to 1,000,000 shares., Company plans initially to
issue 50,000 shares of preferred, proceeds to be used for

plan differs in one essential from the
financing application filed with the Commission last/
April. It calls for complete cancellation of the interest
held in the company by its statutory parents, North
American Co. and North American Light & Power Co.
These holdings comprise stock, dividend arrears certifi-7
cates, Central Terminal Co. notes and warrants to pur-:
chase an additional 300,000 Illinois Power common shares.
The plan follows the financing application in providing
for issuance of $10,000,000 of new preferred stock to raise i
funds for paying off the $11,596,680 of dividend arrears
certificates and in calling the existing $24,175,000 pre¬
ferred stock for redemption in order to force its con¬
pany

Halsey, Stuart & Co. Inc. (bonds only); Dillon, Bead &
Co. Inc. (stock only).

;

National Blouse Co.

Stockholders will vote Aug./
Aug. 14 reported company planning sale of common stock
increasing authorized common from 1,000,000 shares f, 3;y,V'V. r
y.r
•' '■, y;
;?
*• \
y* yI ;',,V-rr >, /:
'0-: 'V/:. \ ;'i-'
with "First Colony Corp. as underwriter.
Kansas City Power & Light Co.
2,000,000 shares (par $1). Probable public offering of
vii'V*"
/-vf>*>.'•• ir) :''3' /.
..>•
33*' N'V^.V•// v'i'over
300,000 shares with Van Alstyne Noel & Co. as
July 9 it was reported that company may in near future
National Container Corp.1
underwriters.
/refund its outstanding $38,000,000 bonds and 40,000 shares
16

•

year

the

plan,; New Mexico Power Co., Las Vegas
Light & Power Co. and Deming Ice & Electric Co., would ;,
be merged into Albuquerque Gas & Electric Co.
Albu-1
querque's name would be changed to Public Service Co.
of New Mexico.
903 shares
now

aries.

The

Kansas Power & Light Co., Topeka, Kan.

owns

common

all the

number

stock of the subsidi¬

common

Probable

securities.

stock, all held by Federal,
resulting from?'

bidders

securities

are

sold

Public offering of stock expected.

in¬

clude Halsey,
Boston Corp.;

Stuart & Co., Inc. (bonds only); The First
Blyth & Co., Inc.; Kidder Peabody & Co.;
Harris Hall & Co. (Inc.).
*

first

Corp.; Otis & Co., and Harriman Ripley & Co.
/?/

Flagstaff Foods

■

Aug. 14

company plans sale of 125,000 shares ($10 par)
convertible preferred and 60,000 shares of common stock..
Proceeds of preferred will be used to further along com¬

pany's program of expansion which

recently included /

the acquisition of three additional wholesale grocery con¬
cerns. Sale of common stock will be the initial distribu¬
tion of securities of this previously privately held con¬
cern in more than 40 years; It is expected that Luck-

hurst & Co., Inc. will head the syndicate of underwrit¬

handling the issue,

ers

;

Fresh Dry Foods Inc., Columbia, 8. C.

May 29 reported

a registration statement covering 650,common stock (par $1).
Expected to be
early date with Newkirk & Co., New York, as
principal underwriters. Public offering price about $5 r

000

shares of

filed at

per

Keystone Steel & Wire Co.

Prov¬

bidders include E. H. Rollins & Sons; Rauscher,
Pierce & Co., Inc. Blyth & Co., Inc.; The First Boston :

share.

ganization.

V•

Foundation,
'

._3 f»'

Probable
:

•

under¬
't

/"•'•,

'•

•

company

lien

collateral

trust bonds by using the proceeds
$2,100,000 secured bank loan, and the repay¬

new

ment

of this bank loan with funds to be received
by
the corporation as a result of the refunding of the bonds
of its wholly-owned subsidiaries—National Utilities Co. !
of Michigan, and Industrial Gas Corp. of Ohio. The new '

August 6 reported negotiations are under wajr between
certain stockholders of Keystone and a group of secur¬
ities firms headed by The First Boston Corp. for public
sale of 182,316 shares of Keystone stock held by the
former group. The stock is understood to represent hold¬
ings of W. H. Sommer, former President of Keystone,
and of Forest Park Home

V/)>"'*

filed with SEC a voluntary plan of
simplification and recapitalization calling for retirement
of the company's entire funded indebtedness
through a
series of financing operations.
The plan provides, initi¬
ally, for redemption of the presently outstanding 5%
/ of

able

reported that company may refund it»

new

National Gas & Electric Corp., New York

June

the merger equals the number of Federal common shares

outstanding.

3/'

; *

May 31 reported company probably will replace out¬
standing bonds and preferred stock with new lower cost

The merged company would have 524,-

($7 par)

was

with

lower-cost securities.
writers Van Alstyne, Noel & Co.

(bonds only); The First Boston Corp.;
Harriman, Ripley & Co:
. :
>
;
' •
.; -

on application proposing merger of four
New Mexico subsidiaries of Federal will be held by SEC.

which

outstanding $4,300,000, 5% debentures due 1959 later this

Stuart & Co. Inc.

Aug. 23 hearing
Under

May 23 it

of preferred stock, with securities carrying lower coupon
and dividend rates.
Probable bidders include Halsey,

Federal Light & Traction Co.

charitable

or¬

$980,000 first mortgage 3% bonds of the Michigan sub¬
sidiary would be sold privately at par and accrued inter- /
est through an investment group consisting of Battles"

•

Kimberly-Clark Corp., Neenah, Wis.
Aug. 9 stockholders approved an increase in authorized
common stock from 1,000,000 to 3,000,000 shares-and
a
two-for-one split in outstanding shares. On completion
of split-up, 1,800,480 shares would remain for use in fu¬
ture financing. Stockholders also authorized a new issue/

& Co., Inc., Philadelphia; G. H. Walker & Co. of Provi¬
dence, R. I., and Smith, Landeryou & Co., Omaha, Neb/1
Under the plan, National Gas &vElectric also would?
dispose of its holdings in Northern Indiana Fuel &

Light Co.

^ "

;

Neptune Meter Co.
Sept.

stockholders

will

vote

on/changing

250,000*

shares common (no par) to 250,000 shares common
(par
of 125,000 shares ($100 par) preferred stock to be subor-k
/ $5) and Von increasing authorized amount to 350,000
dinated to the present 472% cumulative preferred as long
shares.
It is proposed to offer for sale 67,454 common,
as any such stock remains
outstanding. The additional
shares and 9,723 unissued $2.40 dividend preferred stock
common stock may be offered for sale later this year in
to provide additional capital funds.
Probable underconnection with the company's expansion program. Prob¬
7 writer, Riter & Co.
able underwriters include Lehman Brothers, First Wis¬
.

consin Co. and

Hallgarten & Co.

New

York Ontario

& Western

Ry.

;/v

V|, July 29

company asked the ICC for authority to issue
/ $2,600,000 of 3% equipment trust certificates. ^ Proceeds /
will be used to help pay for four diesel-electric
July 11 it was stated that the forthcoming $50,000,000
freight.
locomotives and 23 diesel-electric switching locomotives. •
bond issue to be floated by the Netherlands Government

Kingdom of the Netherlands

Goldring Merchandising Co.
May 28 reported prospective financing being discussed
with Merrill Lynch, Pierce, Fenner & Beane, as under¬
writers.

'•

// "; ./■/

Gordon

July

;//•;

//;/

;

-,/v;

Foods, Inc., Atlanta, Ga.

reported

company

plans

the

common

& Co.

syndicate of investment
banking houses headed by Kuhn, Loeb & Co. will carry
an interest rate of 372% and will run 25 years. Although
it

sale

20,000

shares of convertible preferred stock and 100,000 shares

the American market

intended to file the issue with the SEC the week

was

of July 19,

the filing has been delayed due to unsettled

market conditions.

stock, with Johnson, Lemon & Co. and Allen

underwriters.

Oct.

May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additional
new stock, but it is likely that no action will be taken

Probable bidders include Halsey, Stuart & Co. Inc., and
Salomon Bros. & Hutzler.

;/''::///////■ ////Y

•

New

York

State

Electric

Gas

//^

Corp.

'*// ■://-!/;■-

Sept. 3 company's recapitalization plan filed with New
York P. S. Commission proposes the issuance of $13,000,000

Grand Union Co.

France

others)

1st mtge. bonds due 1976, interest not to exceed
27/8% and $12,000,000 preferred stock, dividend rate not

Industries

stockholders

will

vote

approving

(among

the creation of 71,273 shares of 4% cumulative

convertible

preferred stock

(par $20), which company
preferred stock (par

proposes

to exchange for the 6%

$100)

the basis of six new for each share of old.

to exceed
000 3%%

Plan

also

4%, the proceeds to be used to retire $13,000,bonds and $12,000,000 5.10% preferred stock.

provides for
,

issuance

of an additional

(Continued on page 1306)

$3,-

■

THE COMMERCIAL &

1306

(Continued from page 1305)
000,000-preferred

against

applied

cost

construction.

Republic

of new
':■//

Natural

FINANCIAL CHRONICLE

Co.

Gas

for

•

April 17 reported that company has under consideration
the refunding of its $45,000,000 series C 3%s with issuer
of about same size carrying lower coupon rate. Probable
bidders, Halsey, Stuart & Co. Inc., and Harriman, Ripley
&

Co.

Roos

St. Paul, Minn.

was

Public Service Co.

Ohio

Toledo

plans sale of preferred shares

company

new.-

May 28 it

(Ohio)

Edison Co.

reported

that a refunding program isi
$2,000,000, with Lehman*Brothers., as
contemplated at an early date for this company to be<
probable underwriters;
Company operater^parfcmetttrfollowed later by sale at competitive bidding of the cornstores in the West Coast.
|
M mon stock now held by Cities Service Power & Light'Coi:
in

the

Louis

Service

the

(Mo.)

Public

company

Commission

S6fvic0.i,C%m-»'-:i';^Tucker Corp., Chicago.

petitioned; the

MiMouri-PubUc

*****

August 7 negotiations with an investment .house to
simplify its' flnariciai
sU^uCture/.:.:' cierwrite an initial public issue of about $20,000,000 to '
interest and sinking fund*ehattges*,v-«fjn;ance his
venture into the automobile field with
retire current funded; tiebt-<$1
rear-engine passenger car has been completed by Presup to $10,000,000 new bonds,, but
ton Tucker. The, name of the investment house was
not'
$6,000,000.
Probable, bidders in¬
made public but1 it was stated an announcement of
the'
Co.; Blyth & Co., Inc.,. and- First
financing would be made public in about five weeks. - V
'
.

including reduction in
Company proposes to
640,683)

was

amount

April 19

reported April 10 that company has under con¬
sideration the refunding of $55,000,000 collateral trust
4%% bonds due 1975 and the issuance of a new series.',
of collateral trust bonds.
Prospective bidders, Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and Kidder,
Peabody & Co.
It

one

make

Brothers, San Francisco, Calif.

Sept. 3 reported

St.

Northern Pacific Ry.,

If conditions" warrant, company intends to
public offering of from 50,000 to 75,000 common
shares later this year.
Negotiations for underwriting
such public offering are not yet
completed.

\'y

Aug. 29 reported directors considering refinancing of the
present long term debt to provide additional funds for
property development.
!
' : '
,

Public Service Co.

Indiana

Northern

Thursday; September- 5, 1946'

and to issue

limited

originally to
White, Weld &
Boston Corp.
'
clude

/
Union Electric Co. of Missouri
St. Regis Paper Co.
May 28 it was reported that early sale by Cities Service
It is rumored that company contemplates
refunding its,
Power & Light Co. of its common stock holdings of Ohio
oepu lo siucaiimaers will vore on proposed cnauges in
Sept. 18 stockholders wni. vote
pruposea changes
^^outstanding" $90,000,000 ?%s bf 1971 with lower cost
Public Service Co. was probable following the virtualy the capital, structure designed(- to provide funds for fiobligations. Possible bidders would include Dillon, Read'
nancins
nrnsram
nancing exnansmn
expansion program and ,-mcreasmv
and increasing wnrk,nr«»s
completion of the refunding program of this subsidiary.
working
CO.,InC, iuid Halsey,' Stuart & Co, Inc.
This is one of the few remaining steps prior to com¬
capital. As an initial step in refinancing program, direc¬
,

plete divorcement of - the Cities Service Co. from the
utility field in compliance with the Public Utility Hold¬

tors have called for

ing Company Act.

stock. Stockholders will be asked to

Ohrbach's, New York

pany's

redemption on Oct. 1 all of the com¬
outstanding 5% cumulative second preferred
authorize

Union Pacific RR.

of 250,000 shares of new first' preferred
stocky ($100 par)
to be issuable in series, as the directors
may- determine.
Proable underwriters, White Weld & Co.
,

Aug. 26 reported that present stockholders may dispose
of some of their shares, with A. G. Becker & Co. as

Savoy Oil Co., Tulsa, Okla.

underwriters.
Oklahoma Gas &

Electric Co.,

Company contemplates at

Oklahoma City

time Standard Gas &
Electric Co. sells its holding of common stock (in ac¬
cordance with SEC regulations) to sell approximately
140,000 shares of new common stock, proceeds of which
will be used to reimburse treasury and retire bank loan1
used in redeeming the 7% preferred stock.
Probable
bidders will include Merrill Lynch, Pierce, Fenner &
Beane; The First Boston Corp., and White, Weld & Co.
same

July I stockholders increased authorized common from
150,000 shares (par $5) /to 300,000 shares - (par 25c);
Shareholders will receive rights to;subscribe to: 100,000 w

optioned to directors at

same

;;|

May 9 it wa? reported officials are considering the question of meeting the $100,000,000 first mortgage railroad
and land grant 4's due July 1, 1947. However it is felt
maturity date is too far away to determine now whether
issue will be paid off in cash or will be refunded. If
company decides to refund through new issue probable
bidders will be Kuhn, Loeb & Co., and Halseyr Stuart

issue

<& Co. Inc.

$epfc 30

price.

' United States

•

Finishing Co..

stockholders will vote

recapitalization plan j
class of 63,000 shares (no par)/,

which provides for a new

common from 200,000':
Shares .to 500,000 shares (no par). Holders of outstand->;
ing.7% preferred will have privilege of exchanging their,
on Sept. 20 a block of'1,944"** stock for new
$4 preferred and common on basis of 1%
shares of class A common stock and
27,350 shares of
shares of new preferred and 1% shares of common for
class B stock of Savoy Plaza, Inc.
According to-the court ;> each-share of old preferred. If plan is consummated a
order permitting the sale the securities must
bring in
total of 123,142 shares of common stock will be availableat least $677,863. There also .will be
granted^to tbc. pur.*^; - for subsequence issuance.
•

Savov

PIara

f"v®y Tu

Npw

Inr

„

$4 convertible stock and increase in

Ynrlc

Sept. 4 the Sheraton Corp.
will sell at public auction

America announced that,it

Pacific

Lighting Corp.

June 7 directors authorized the management to prepare

plans for refunding the corporation's 200,000 shares (nopar) cumulative $5 dividend preferred. Blyth & Co. will'
probably be underwriters.
V
*

chaser of the A shares

additional

irrevocable option to

of the A

2,346

purbhase

stock^TOwnect

action

company's proposal to sell 328,125 shares (par
$100) common stock, the latter to be offered for sub¬
scription to preferred and common stockholders pro I
on

rata.

Debentures are to be sold competitively with Mor¬
Stanley & Co.; Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., as probable bidders,
v
:
gan

•

Pantasote

Sept. 3
tasote

Plastics, Inc., Toledo, O.

Pantasote

Plastics

will

consist

2,000,000
($1 par) common stock, 150,000 shares of ($20 i
par) $1,125 cumulative convertible preferred stock and
50,000 shares ($10 par) 4tVz% cumulative B preferred
istock.
Of these, 20,000 B preferred shares would be
purchased at par, or an aggregate of $200,000, by the
principal stockholders of Pantasote Co. Share exchanges,

following effectiveness of a registration statement soon
to be filed, contemplate the issuance, in addition to the
B preferred, stock,
of 1,183,917 common shares - and
47,146 4/5 convertible preferred shares, as follows: Pantasote's 385,158 outstanding common shares would be
exchangeable for a total of 770,316 Pantasote Plastics
common

shares in the ratio of

for

the

two

latter.

one

share of the former

Textileather's

117,867 outstanding
common
shares would be exchangeable for a total of
353,601 common shares and 47,146, 4/5 convertible pre¬
ferred

shares of Pantasote

Plastics

share of the former for three

of preferred

5,000 outstanding
for

Pharis

Sept.

one

the ratio
shares

one

and 2/5-

Astra

Realty's

shares would be exchangeable t
shares in

common

share of the former for twelve of" the

Rubber Co.

stockholders
stock

common

will

the

vote

basis

on
an

split-up

Van Alstyne, Noel & Co. and G. L. Ohrstrom &
Co.

parent)

stated that the 236,819 shares of

was

(now
may

invested

construction,

Southern

Co.'s

owned

Portland

Electric

be publicly offered later this

common

Power

year,

pliance with the Utility Holding Company Act.

Co.,
com¬

Prob¬

subsidiaries

and

new

Electric

May 10 pursuant to substitute plan for retirement oi
preferred stocks of Electric Power & Light Corp., filed
with

SEC

common

stockholders

Electric

Power

200,000 shares (par $50)

common

from

2,000.900

new

2.500,000

and

inating 72,000 authorized but unissued convertible
preferred stock.

s.-

elim¬
first

issue.

coupon

bidders

Possible

include Halsey,

Co., Inc., and Kuhn, Loeb & Co.

Waitt & Bond, lnc.,
June 12 it
tion

i-'

Newark, N* J.

reported company has under considera-:

was

refinancing program. Announcement expected at,

•.

Oct. 2 stockholders will vote
of 350,000 shares of new
tends to issue

200,000

share.

preferred stock.

Company

shares of

$4.50 preferred.

new

Company in¬

preferred

new

con¬

dividend rate not above

plans

$4.50 preferred would be given

change their stock for the

Probable

•

refund
Holders

underwriters

\ .5'

Western

•'

>x*'' Vf..

•->

Maryland

May 22 reported

;

£{•>!•'

v
r

^yV

•

».

v
-.-'v.
J

Ry.

company

working

$44,901,000 first mortgage 4s.

plans to refinance

Probable bidders include',

Kuhn, Loeb & Co., and Halsey, Stuart & Co. Inc.

}

outstanding
Western

of present.

opportunity to

preferred

•

approval of the creation

initial series of the

sisting of 220,000 shares with
$3.50

f_1

on an

ex¬

equitable

Dillon, Read

Pacific

RR.

April 11 ICC conditionally authorized company to issue,

$10,000,000 first mortgage bonds, series B, due Jan. I*'
1981, proceeds to be used to refund a like amount of;
first mortgage 4%

bonds due Jan. 1, 1974, and held by

Interest rate to be specified in bids.

RFC.
tors

Co. Inc., and Blyth & Co., Inc.

The direc¬

rejected the conditions attached by the ICC but

re-hearing the ICC July 19 affirmed its original order.
Stetson

July 5

(John B.)
was

•

Producing Co.

Texas

Gulf

long-term loan of $2,500,000.

merger

of Fohs

Oil

Co.

into

Lynch,

Blyth

Pierce, Fenner & Beane;

Glore, Forgan & C.

Co.,

Merrill

Inc.-;

Shields

Co.,. and

Sept, 5 corporation, as a final step in its' current

the

Texas

Gulf

:"'G;KWestinghouse;:;Electri<J>Cb^

Sept. 27 stockholders will vote on creating 50,000 shares
($100 par) convertible preferred stock and on approving
the

bidders. include

Probable

Co., Philadelphia

reported negotiating for the pur-.;
chase of Mallory Hat" Co.
This transaction and other
phases of the company's' expansion program will, it is
company

Pro¬

j^inanc-:

ing plans, proposes to issue and offer to the public at
a

future

new

date

preferred

Loeb &

Co.

issue

stock.

„

approximately $50,000,*000 of

Traditional-underwriter;-Kuhn,-

;>•' V :"J;".v.

;'r *

Mc-.

issue

preferred stock; increasing

re-

$47,000,000 first mortgage 3&s of 1971 with

Juan and New York.

•/ Standard Brands, Inc.

•

authorized

reported that company may possibly

ducing.
The new preferred will be issued to retire
$9,757,667 of indebtedness to the Guaranty Trust Co.

lower

Railway

was

Light Corp., would be given rights to subscribe to United
early date;
Gas Corp. common stock and stock of the new
holding 7
company Southern Electric System, Inc. The latter com¬
Watprman Airlines
'
pany would be formed to hold the stocks of Arkansas
July 17 reported company contemplates new financing. '■
Power & Light Co., Louisiana Power & Light Co., Mis¬
Company intends to conduct a non-stop air cruise be¬
sissippi Power & Light Co., and New Orleans Public
tween New Orleans, San Juan, Puerto RicO and San
Service Inc.

It is expected that Lehman Brothers, and Kebbon,
Cormick & Co. will underwrite the preferred.

Republic Aviation Corp.

fund its

System, Inc.

able bidders include Blyth & Co., Inc.

Sept. 27 stockholders will vote

Wabaslf

May 4 it

Stuart &

Southern

•

said, necessitate

Portland General Electric Co.

stock

exchange of two

($20 par) preferred stock. Probable underwriters

July 9 it

Co. (to be successor to Commonwealth
Corp.) proposes to sell for cash (whem
Commonwealth's recapitalization plan becomes • effec¬
tive) sufficient common stock to realize $10,000,000, to

ing preferred.

shares for each old share, and on
authorizing 100,000

Southern

Arrangements will be made with underwriters for /
the sale of shares not taken by holders of the outstand¬

Tire

Co.; Ladenburg, Thalmann Corp., and Lee Higginson

Southern

basis.

latter.

new

common

latter.

total of 60,000 Pantasote Plastics

the ratio

the

of the

stock

common

The

Corp.

Southern Co., New York

company is to be formed through merger of Pan¬
Co. and Textileather Corp. Authorized capitali¬

zation

Aug. 14 reported company, manufacturer of women's
underwear/ planning sale of preferred stock with First
Colony Corp. as underwriter.

Verney Corp., Boston, Mass.

July 3 the management has under consideration the
simplification of the company's preferred stock and debt:
structure.
Nothing definite as to the types of securities*
that may be issued has been reached as yet.
Under- ::
writers may include F. S. Mosley & Co.; White,
Weldj

Seamprufe, Inc.

issuance of $75,000,000 40-year debentures but postponed

]

Sheraton.

Pacific Telephone & Telegraph Co.

Aug. 29 California Railroad Commission authorized the

' "

;

•

Wisconsin Public Service

May 20 it
Thatoher Glass Manufacturing Co.

Aug. 29 stockholders of Thatcher Mfg. voted to, change
name to Thatcher Glass
Mfg. Co. and increased author-,
ized capital stock from 750,000 shares (no par) to 1,500,000 shares (par $5) and the exchange of two old shares

Co.

was

Co.v Milwaukee, Wis*

reported that Standard-Gas & Electric'

expected to sell at competitive bidding some time

this year

its holdings of 1,099,970 shares of common stock-

Probable bidders include The Wisconsin Co.; The FirstBoston, Cerp.;

Harriman Ripley & .Co. ;

Volume 164

A victory day

;•

statement by Reconversion Director

advices

workers

$30,000,000,4
.000 since V-J Day, the'' anh'iversary. report .' Stated, ' while "'"total
construction has jumped almost
.

were

and

of-1945, Steelman continued,

there is reason to. expect, the birth
'of new concerns at a high rate. J]

•••?"

payments

income

,1_

nation as a whole

the

For
' "

total

■ JJ

compensation,

Lt.^Col. George Bryant Woods

slightly higher -than the
total for the year 1944, but it was

that

taxes "were .at

.the

record."

highest

and

the

exhaustive

of the "suitability clause."

must take suitable work

person

liberal.

Unem-

interpretation, he said,

is "placing a

premium

loafing."

DIVIDEND NOTICES

E. I. du Pont de Nemours

Ability

the

"Wages—Fred

<®pp

to Pay

FaircEild—

Rogers

for Economic Educaf

Foundation

New
tion

York—'paper—500
.quantity orders).

this day

The Board of Directors has declared

(reduc¬

WELLINGTON

<$► FUND

J4 a share on the outstanding
Preferred Stock, payable October 25, 1946, to
stockholders of record at the close of business

dividend of $1.12

' i

& Company

Wilmington, Delaware: August 19, 1946

Inc.,J Irvington-on-Hudson,

total; * In the
decline was only

annual

1944

West

his

that

announced

plans

clause, which specifies that

that

—

TvV'tr-?1'*li,;r
Profits

Far
5%.
r
■* "Total income payments to * In- The * three states sustaining the
:
dividuals today equal or exceed largest relative decline from 1944
the war peak of $163,000,000,000 to the last quarter of 1945 were
i'i and have climbed more than 60% Washington,- Oregon and Michi¬
In. each state the decline
J over the .peacetime..peak of .1929. gan.
was
approximately" ^one - tenth.
pesgite the high production
These were among the five states
level; attained, - supplies z are not
sufficient to meet demands-; for where the role of war production
most consumers'
items.'; In :the in swelling the volume of indiincomes after 1940 was
case of automobiles,
many other vidpal
The ? other • two states
:* goods using steel, some types of greatest.
were Connecticut
and New Jer¬
clothing, and housing, prewar volsey. In all' other states where
ume of output still has not been
production was exceptionally im?
^reached.
v
*
portant in contributing to the war"Some shortages (will continue
period expansion of total income
""the rest of this yeaf^and longer,"
payments, the rate of income pay¬
levels

the State

workers

many

when offered, has been given such

Security Committee, pointed

Stiegel, Chairman

under

Stiegel

Committee

This

out

security

New"¥brr5, N. Y.—cloth— $5.00;

'after

which

from

social

must be deducted.

State analysis

cial

was:

foreseen; the profits pf heavy $4 billion less "than the quarterly
'industry' sagged: sharply because peak mate in early 1945r.In all
contracts and areas .except * the Far West, Tthe<
.the high cost'of reeonversiom but fourth quarter 1945- rate of inin the rest of the .economy "profits conie
payments approximated the

Illinois

'--Aircraft Manufacturing Industry

—Present and Future Prospects—

*'■

I of; the loss" of'• waT;

Mr.

unemployment;

the

job,

and

Unemployment Compensation Act,

of the Chamber of Commerce So¬

the

billion.: White, Weld & Co., 40 Wall Street,

annual rate of $151

.an

This

90 cents an hour

drawing

are

sons

taking unfair advantage of the

are

though 80,000 per¬

even

Leonard

fourthadjustment, were equivalent
garter-of
J. , "
sonal
to

more,

about

jobs,

hour

Suggesting that

House, Inc., 214, North Charriber of Commerce announced
Michigan Avenue, Chicago 1, 111; after, a spot survey."
—dabrikoid (board covers)—$4,004

the

k Jl/vy.

1 A /t g

cent

withholding

lacking

186,940

for

Act

draw a maxi¬

This compares with $36 for a 90-

Clearing

royalties and ' other
items such as veterans' benefits,
military family-allowance and dependency allotments.

250,000 jic W: businesses
v )UU U
new
established in the last half

Nearly
lj

Taxation—George T. Altman and
Frank M. Keesling — Commerce

diiri'derids,

...

'four times.
Al Col

State

Income

yearly production rate pf come from unincorporated busigoods4 and services 'Jor ; civilians nes and farms, net rents,, interest,

Allocation

The

has soared more than

industry

;

half of which pay

retirement" The Department further reports;::?
,The*As&b- V: 'Included ' iri' the income pay-.;
ments are wages and salaries, insaid;

iciated Press further

Journal"

; taxes

Illinois

and >; debt
maintained.

controls

Street

said:;
•

Compensation

person may

of $20 a week for 26 weeks.

mum

above head,

the

"Wall

the

Aug. 28 from its Chicago bureau

must

future,"; Mr^Steelmam>went

assert, according to Associated Press Washington advices, that
policy of high ..taxes, re-*
..
;
;
:
.duced public,expenditures, credit cline from 1944to 1945 was

jobless

Compensation

Under

Warning that the "threat of infla¬

"fiscal

ployment
_

lowing the cessation of hostilities.
tion still casts a shadow over the

Prefer

Business

John Li. Steel-

Aug. 13 declared that the United States had achieved "sub¬
stantially full employment" and record profits during the year fol¬
man

130?

Illinois Workers

Year's Gains | >;

Steelman Reports on

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4522

••

iO, 1946; also $1.75

October

for

dividend

interim

third

share, as the

1946,

to stockholders of record at
business on August 26, 1946.

1946,

Wages LI 11 de r N atio n al and Re ^

INCORPORATED 1928

the close of
'

Quarterly Dividend

perience in- Seven Industries—In¬

"Section, : De¬
partment of Economics and Social

dend of 20c

Princeton, N. J.—paper—$1.50

net

nary

Irving Trust

Institutions, Princeton University;

ber

30,

per

income payable Septem¬
1946 to stockholders of

September 18, 1946.

record

Company

WALTER

DIVIDEND NOTICES

L MORGAN

President

V'5;

f'"

declared a divi¬
share from ordi*

The Directors have

■

;

■'•

Relations

dustrial

67th Consecutive

W. F. RASKQB, Secretary

gional Collective Bargaining—Ex¬

•

MUTUAL INVESTMENT FUND

the out¬

payable September 14,

standing Common Stock,

One Wall Street, New York

the

director

reconversion

dieted.

r -

pre-

ments

1945

was

likewise below the 1944

peacetime year since we became

industrial nation," the report
\ stated, adding that no significant
? increase' in' joblessness
is exf pected for the rest of this year.'?
|

The same advices

serted,
increase

RKO

Demobilization—The absorption
"i of 10,400,000 veterans into the

Day has "genand rapid." ■
|
Housing — Despite considerable
? progress
in the emergency houseconomy since V-J
; erally been smooth

{

ing program, the shortage in many
areas today is more acute than at

■.

any

time during the war.

Fiscal

Policy—The government

depending on ; cutting public
construction projects as the major
means of reducing Federal spendis

>
>■

regular quarterly dividend for
of $1.1824 per,
share, payable October 1,. 1946 toj
the current quarter

holders of record at the close of

For

record

dend

Company

has

poration payable phjOctoberL;

share,

.1946 to stockholders of record

common

the

to 62y2 cents per share on the
2,205,643 shares of common stock of
this corporation presently outstand¬
ing, payable on September 30, 1946
to the holders of said stock of record

the close of business

extra

divi¬

dend of fifty

of business

on.

of the

stock

Com¬

payable on September
1946, to stockholders of

27,

September 13, 1946.
J. MILLER

cents (500) per
the
outstanding

pany,

alent

1944, to hundreds of thou¬
sands of war-plant employees and
their families these three months

declared

the Common Stock of the Cor¬

the close of business Sep¬

A dividend of $1,378,526.87^equiv¬

1945 was as high

quarter

COMMON STOCK

Wentworth Manufacturing

quarterly divi¬
pf 30 cents per share on

declared

tember 16, 1946,

although in most states the total
income of all individuals in the
fourth

'"THE Board of Directors has

of $1.75 per share,
payable October 1, 1946 to holders of

example,

The Board of Directors of

regular quarterly dividend for

the current quarter

Also,

experience of all income groups,

populations.

CORPORATION

STOCK

7% SECOND PREFERRED
The

they do not reveal the differing
experiences of various classes of
the

RADIO-KEITH-ORPHEUM

busi-

nesstSeptember 16, .1946. >

they represent the average

since

The

regional income totals conceal the
severity of .readjustment prob¬
lems in some local areas.

MORSE G. DIAL,

Secretary and Treasurer

84.75 SERIES

The Department of Coihmerce
those "necessary to
production and to com¬ ipointed out that the state end

{

Seventy-five cents
share on the outstanding
capital stock of this Corporation has
been declared, payable October 1,
1946, to stockholders of record at th©
close of business September 6, 1946. '
per

FIRST PREFERRED STOCK

are

bat inflation."

A cash dividend of

(75^)

THE Boardthe Directors has this day :
of following dividends:
declared

i 0H3

Avenue, New York 16, N. Y.

180 Madison

CORPORATION

September 9, 1946. .V

CORPORATION OF AMERICA

-A

CARBON

AND

STEPHEN G. KENT, Secretary

CEIANESE

larger than 3 to 6%.

the leading features

<f ;i

CHEMICALS

of business

summarized ter 1945 income payments result¬
of the report ed from mustering out payments
other gains in 12 months of to discharged servicemen and un¬
I peace, as follows:
employment benefits, a sharp rise
I
Agriculture — "Farmers
a r e in income paid out by trade and
J looking forward to bumper crops service
establishments stemming
and can sell at good prices all the from record consumer spending,
| foods and fibers they can grow." and a continued advance in in¬
■f 3 Federal
Controls —?The
only come payments by other private
1 ones
remaining,
Steelman ' as¬ non-agricultural industries.
|

per

stockholders of record at the close

high levels of fourth quar¬

The

.^1

CARBIDE

UNION

share on the capi¬
Company, par
$10., payable October 1,1946, to
cents

tal stock Of this

Jersey, Indiana, Ohio, Kansas and
California.
However, the decline
of total incomes in those states
was no

of 15

TICS

i
The proportion of unemployed is total. States in this category Conr*
| "prpbably the lowest for any necticut, Maine, Maryland,. New
r

August 29,1946

day declared a quarterly dividend

quarter, of

fourth

the

;

The Board of Directors has this

J> TEXTILES

record

the

of busi¬

September 16, 1946.

ness

WALKER
Secretary

Checks will be mailed.

August 27, 1946
JOHN E. McDERMOTT,

September

'T"

16, 1946.

.Secretary.

„

R. O. GILBERT

:■ i

Secretary

brought—if only for a short time
j irig by $2,200,000,000 in the fiscal —unemployment and reduced av¬
year ending
next June 30, but erage income. '•
j
~
other means of reducing Federal
X' An item bearing on the average
expenditures will be developed."
per capita annual income of in¬
dividuals apepared in our issue of
'
Aug. 29, page 1182.
;

September 3, 1946. '

IV i ;11...

Safeway Stores, Incorporated

f ?

( :

j .1;:

AMERICAN

Preferred and Common

*•

hdiridaal Incomes in

mm—' 1

1944

Universities to Give

This
increase in the dividend is made
tax.

income

free

Stock

by the current reduction
The Directors are of

year course

Despite

war

slightly exceeded the 1944 record,
the Department says.
It adds that
"even in the Far West, where tre¬

growth' of shipbuilding
afid aircraft production was the
predominant factor in a spectacu¬
lar war-period expansion of in¬
dividual income, the income de¬
mendous

porated, on August 23,1946, declared
quarterly dividends of 25c per share on
the, Company's $5 Par Value Common

One Pound of Ordinary

each

Stock

Life Ins. Course

Department of Commerce said on
Aug. 25. In every region except
the Far West the individual in¬
comes in 1945 either matched or

of One Shilling

Marking

ment in the
ance

possible
in

important develop¬

history of life insur¬

training, five major Ameri¬
universities will hold a one-

sufficient

resources

has

University of Connecticut, Purdue
University,
Southern
Methodise
University and Texas Christian
University, according to an an¬
nouncement made jointly by the
Life

Insurance

Manage¬

Agency

ment Association and the National
Association
on

Aug,. 30.

Life
• V

Underwriters
•' •'

•

• r

•

* •

18,1946, and $1.25 per
the Company's 5% Preferred

Stock, payable Oct. 1,1946, to holders

velopment of its business and that

consequently the increase does not
in life insurance mar¬ offend against the broad general
keting beginning .this fall. They, rule laid down by the Chancellor
are
the University of Alabama, Exchequer. Coupon No. 198 must

can

On
one

July
and

COMPANY
stock

30, 1946, a quarterly dividend of
three-quarters per cent was declared on

the Preferred Stock

this

Company, payable

October 1, 1946, to Stockholders of record at the
close of business September 12,. 1946. Transfer
Books will remain open. Checks will be mailed.

R. A. BURGER, Secretary.

business Sept.

de¬

the

for

payable Oct. 1,1946, to holders

preferred

of such stock of record at the close of

taxation.

the opinion that the company

CAN

ISlptice is hereby given that the Board
of Directors of Safeway Stores, Incor¬

30th

decided to pay on September
Interim Dividend

the sharp contraction
production' following the
surrender of Japan, the volume of
Income payments to individuals in
1945 approximated the 1944 levels
in all regions of the nation, the

Stock Dividends

meeting of Directors held

August 27, 1946 in London it was

for

1945 Equal

of such-stock of record at the close

business Sept.

GUARANTY TRUST COMPANY OF NEW
The Board of

terly

18,1946.

MILTON L, SELBY,Secretary.
August 23,1946.

YORK

;• York,
September 4, 1946.:;
Directors has declared a quar¬

"'■>New

dividend of Three Dollars ($3.) per share
Capital Stock of this Company for the

the

quarter ending
September 30, 1946, payable
on
October • 1. 1946, to stockholders of record
at
the close of business September 11, 1946.
MATTHEW T. MURRAY, Secretary. ;

be used for Dividend.
All

transfers

London

29tli will be
of

order

received
or

DIVIDEND

Notice is hereby given that a dividend at the
rate
of
$1.00 per share on the issued and

shares without par value of the
Stock of Western Tablet & Stationery

outstanding
Common

BRITISH-AMERICAN

Corporation

September

TOBACCO COMPANY, LIMITED

such

„

been
1946, to

has

30,

September 16,

August 27,. 1946...

HOMESTAKE MINING COMPANY
DIVIDEND NO. 861

CORPORATION

in time for payment

dividend to transferees.

NOTICE

WESTERN TABLET & STATIONERY

August

before

the

declared payable on
the holders of record
close

business

1946.
E. H. BACH,

Treasurer.

The Board of
No.

861

Directors has declared dividend
cents ($.40) per share of

forty

par value Capital Stock, payable Sep¬
tember 20, 1946 to stockholders of record 3:00
o'clock P. M. September 10, 1946.
Checks
will
be
mailed
by Irving Trust

$12.50

Company,

Dividend
JOHN

August 27,

1946

Disbursing Agent.
HAMILTON,

Secretary.

THE COMMERCIAL & FINANCIAL CHRONICLE

1308

federation of Western Europe
which she is now occupying.

Observations

Thursday, September 5, 194#

including the whole sector of Germany
'

(Continued from page 1265)
the rounds to the effect that the United States and Great Britain

are

already putting the screws on France to join their German zone with
ours,

is correct

not, Mr. Byrnes' is
discussions

November

the

.of

between

wise
the

move

in anticipation

Western

and

Powers

Molotov Intensifies Soviet's Stalling Tactics

Surely the

Soviet's

in delaying the peace-making look
Coming right after his proposal for
postponing the UN General Assembly from Sept. 23 until January,
M. Molotov's sensationally sudden flight from Paris to the Kremlin
is ominously helpful to the Soviet's purpose of "keeping 'em talking"
while intensively consolidating and infiltrating all over Europe.
•
successful

than

tactics

ever.

While—the veto privilege not being involved—the General As¬
sembly's meeting at Lake Success probably will open on schedule,
further delay at Paris must

additionally hamstring the chances for the

desperately-needed peace-making results
V;"v'V
'•
/ • V-..'

sides
■■ '■

both

lantic.

the

At¬

Geyer
New

that

be made before his return—whether

can

reparations;

over

Italy;

Trieste;

complaint

the

Co., 67 Wall Street,
City, has opened an

the

Russ

Francisco, and
tember

10th

Pacific

Building, San

Coast

about Sep¬

will

open

office

second

412

W.
Sixth Street, Los Angeles, in or¬
der to provide more convenient

facilities

dealer

institu¬

and

tional customers.

example, in Paris Molotov's absence has caused indefinite
postponement of the Big Four Foreign Ministers' meetings, to which,
because of the stalling in the open sessions, hopes for
achieving some
progress had been shifted. Whatever show Paris manages to put on
in Molotov's absence, it is certain that no progress whatever in break¬
ing the various stalemates

York

office

For

Geyer & Co. Expands
On Pacific Coast,
f.
Opening New Branches

against

Greece; Yugoslavia; the United States' impounding of Danubian ships;
or reorganization of the German occupation zones.
If the Paris

meeting lasts until November, as seems likely, an¬
other ironic contrast in proceedings will be provided.
For beginning
Oct. 28 and lasting through November, the United Nations Educa¬
tional, scientific, and Cultural Organization is inaugurating in
Paris
a > series
of
educational,
scientific,
and .cultural
dem¬
onstrations i:| under i the
name
of
UNESCO
Month.
Side
by
with
crucial
and % realistic
side
Power.. Politics' i wrangling
there
will
be elaborate
programs
of
lectures
on
".world
problems,"
concerts,
drama,
festivals,
painting
exhibitions,
lectures on the progress of education—and many other activities
to demonstrate the supposed progress achieved in the educational,
scientific and cultural life of the world.. 1
<

Walter C.
tain

Gorey, formerly Cap¬

and with 15 prior
of specialized experience in

years

the analysis and sale of bank and

insurance stocks, will be in charge
of the Pacific Coast offices.

Geyer & Co.'s

;

Los

Angeles

branches in

new

San

and

Francisco

will be connected with the firm's

New

York,

Boston

and

Chicago

offices by direct private wire, and
also

private

spondent
and

wires

firms

with

Philadelphia.

corre¬

Cleveland

;

| Geyer & Co. act

wholesale

dealers only,
specializing in bank
stocks and insurance stocks exclu-

sively.r'';\-rjii ,y::;/?

Also in the field of atomic energy is there continuing delay. It is
understood that no decision has as yet been made regarding the next

meeting of the Atomic Energy Commission, because of uncertainty
availability of a place for the meeting.
Ar:; - ,

over
'

Looking Forward

Reprinted with permission from the Washington, D.'C.j

Russia.

For

these

will

the

first

"Evening Star"

of Aug. 22

direct

peace-settlement nego¬
tiations off the periphery of the location of the War.
In the definitive settlement of

Germany—the genuine settlement

Europe—it must be realized that today Western civilization ends

at the

Elbe River,

which marks the dividing line between the two

sections of Europe.

It also should be realized that the Russians must

be put

out of Eastern Germany, and out of Austria, with that country

taking its place
the

state in

as a

Emlen

Newbold,

Jr.,

COLO.

John

—

heart

attack

suffered

while

Jr.

Bank

viously

with

Harris,

Co.,

•

was

pre¬

Upham

was
vacationing at his summer
Company, First National home in Bar Harbor. Mr. New-

Building.

ment

the

In
in

business

past

Mr.

bold

his own invest¬

Goode conducted

many years.

joined the Drexel Company

for

1912

;

Denver

the

■

and

had

firm

been

since

partner

1922,

Old Reorganization
Rails I iU
^rtjjs.

Commons & Pfds.

NEW ISSUES
HAnover 2-0050

Kobbe, Gearhart & Company

Teletype—N. Y. 1-971

FOREIGN SECURITIES

INCORPORATED

Abitibi Power &

Paper Co.

;

Brown Co.
announces

Minnesota & Ontario Paper Co.
Bonds

and

the

M.S.Wien&Co.
ESTABLISHED 1919
Members N. Y. Security Dealers Attn

r.ARL MARKS & r.O. Inc.

Gearhart

New York 4, N. Y.

45 NASSAU
telephone

Pneumatic
Sub Elec.

Hat

Thompson
Nat

4':)

r:-.

>•'

•

Investment Trust Issues

Com.

Spa

bell teletype

Enterprise

601S

£■ new york 1-576

5K"A"

Analysis

New York

BS 328

124 FEDERAL
v;:

Teletype

Hanover 2-7913

are

pleased io

announce

ihc af}()oinlmenl

148
TcL

State St.,
CAP. 0428

STREET, BOSTON 10

Established in 1922

Tel. HANcock 871S

RAYMOND

Boston 9, Mass.

Teletype BS

250

Telephone HAnover 2-7914

"Seaboard Fruit

on
xmanager of

Eastern

Sunshine Consolidated

•

Corp.

(

"Susquehanna Mills

Engineering Co.

our

trading CDefjarlmenl

Convertible Preferred

Pressurelube, Inc.

Co., Inc.

"General Products

GROWTH COMPANIES

Grinnell

W. YOUNG

Tele. BOston 22

Empire Steel Corp.

and Common

*Prospectus
U. S.

request

Specialists in
New England Unlisted Securities

Ralph F. Carr & Co., Inc.
Milk Street, Boston 9, Mass.

New Eng. Market

(We

Boston

Frederick C. Adams & Co.

Hubbard 6442

Stock :

Recent price 8 V2

Public Utility Stocks and Bends
TEXTILE SECURITIES

Securities with

Foods

HA. 2-8780

1-1397

LIPE R0LLWAY

STREET, NEW YORK 5

'[/•'

1 »■

Insurance and Bank Stocks
Industrial Issues

Scale

Sec.

Rogers Corp.
Merrimac

| '•'!T

September $, 1946

We specialize in all
,

philadelphia telephone

REctor 2-3600

Worumbo Mfg.

Members New York Security Dealers Association

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

•

Company

INCORPORATED

...

50 Broad Street

Exchange PI., N. Y. 5
TaletTM

SPECIALISTS

FOREIGN SECURITIES

name

III

;

change of the firm

Radiator,-Pfd.

request

REMER, MITCHELL & REITZEL, INC.

Fleetwood-Airflow, Inc.
Common

208

W. T. BONN & CO.
120

Broadway

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-8S3

SALLE

STREET

•

CHICAGO

4, ILLINOIS

Hill, Thompson & Co., Inc.
Amos Treat & Co.
40

Wall St.

BO 9-4613

New York 5, N. Y.

Tela. NY 1-1448

Markets and Situations for Dealers

September 3, 1946

'a'

associated

now

Goode has become associated with

Otis

;

Geyer & Co., Inc., 412 West

Sixth Street. Mr. James
a

partner in Drexel & Co., died of

DENVER,

James,

with

Newbold, Jr. Dead

Arthur

Staff of Otis & Co.

•

LOS ANGELES, CALIF.—John

;

As in other sectors, Mr.

firm stand against the Soviet, and insist

A. E.

Western union, together with Bavaria,

Rhineland, the Ruhr, and the Saar.

Byrnes should take

John H. Goode Joins

James With Geyer & Co.
R.

120

Broadway, New York 5

Tel. REctor 1-5626

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : September 5, 1946, Vol. 164, No. 4522, Section 1

FRASER