Full text of Commercial and Financial Chronicle : September 6, 1945 : National Security Traders Association Convention, Vol. 162, No. 4418, Section 2

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162

Number 4418




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v

BOND

THE COMMERCIAL & FINANCIAL

and

CHRONICLE

STOCK BROKERS
Specializing in

Reorganization Securities

Railroad Securities and

Publishers of

"Guide to Railroad Reorganization

Securities"

Special Interest In Defaulted and When As and If

Issued

Railroad Securities

PFLUGFELDER, BAMPTON & RUST

T

V'- -

1 '

Bonner m
Verniers
JKCemlcrs

York Stock fixchangc?

Chicago Stock Exchange

"

30 PINE STREET, NEW YORK S, N. Y.

Telephone WHitehall 3-9030

i

Teletype NY 1-86S

Thursday, September

fi

1945

.Volume'162

Number 4418

.
...

.!

THE COMMERCIAL &
FINANCIAL CHRONICLE
•

••
-1

i

National

-

Security Traders Association
Newly Elected Officers

Secretary

Ist.VicerPresident

..

President

2nd Vice-President

Treasurer

WTO

Edward




H.

Welch

R. V.

Mosley

Thomas Graham

Harold B. Smith

Firmin D. Fusz, Jr.

Retiring Officers
President

Ed.

E.

2nd Vice-President

Parsons, Jr.

John E.

Treasurer

Sullivan, Jr,

J.

G.

Heimerdinger

Executive Council
The Executive

Council is composed of

the

Officers; retiring President; Wil¬
liam Perry
Brown; Josef C. Phillips
and W.

Perry McPherson.

*

,

Wm. Perry Brown
Josef C.

Phillips

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1068

To All Members of the

NATIONAL SECURITY




H 'ill1
''

1

To

a

the

Special Wish

A.-;?""A' ' ' AA

■

'*

:r,,

" '

I. 2#i

Boys Miho Did

V-E and V-J

to Bring Us

Days

INCORPORATED

CHICAGO

NEW. YORK

SAN FRANCISCO

Greetings From N S T A Officials Past
ED. E. PARSONS, JR.
'

The 12th Annual

Association
one

Meeting of

comes

at

the

your

end

of

of the ^ most difficult periods

in the
us on

country's history; and puts

the doorstep of the time that




tions because of
my past and pres¬
ent association as a
member of
the official
family of the NSTA.
Under

the

the

-

able

outgoing

ward

E.

ation

leadership

of

President, Mr. Ed¬

expected

a

elect

and his official
family. The
membership is justified in placing

their utmost confidence

Parsons, Jr., the associ¬ administrators

accomplished much for the
membership and industry as a

whole.
It is impossible for the
President of the NSTA to give out
a
detailed report on all of the

activities

and

about

the

for

benefits

brought
membership.
The

President and his co-workers have
been
unselfish
and

untiring

and Present

member of the Ex¬
ecutive Council to the
President¬
as

greater NSTA.
-

t

?.

•.

towards

in

these

an

even

~

Wm. Perry Brown

J. GENTRY DAGGY

Presidential

C-

-

Greetings to the National Se¬
curity Traders Association's Elec¬
tion Meeting
at Mackinac and

Greetings

in

their efforts and have
given many
days of their valuable time at a

personal
and

sacrifice

their

to

businesses

belief that

a

themselves
in

the

firm

better

understanding
can be had
of exactly what the
NSTA stands for, not
only for

Thomas Graham

those within the
industry, but also
for those who are the ultimate

The National

customers, both sellers and buyers
in corporate and
municipal secur¬

derful

opportunity to be of service

ities.

By

word

of

mouth,

the

Security Traders Association
to

our

the investment business in the
post-war

press

has

a

y

won¬

country and to
and it is the

era

fixed intention of your
officers, members of the Executive
Council and the National Committeemen to
do

possible to make the next
J.

.

heartiest

Gentry

Daggy

ization.

congratulations to Tom
the new president, who

Graham,

weir epitomizes the "atomic force"
within the organization.
.

It

is

matter

a

satisfaction
find

to

of

in

officers

the

to

Associa¬

tion and its work is not only well
sustained but continues to grow

with the passing years;
a

There is
personal touch about this volun¬

tary

association

that fills
to

a

itself.

of

causes

old

one

an

Your

to

the

power

ing

time

when the lifting of travel restric¬

tions will again enable

so

new

our

a

we

organization will be

is the

hope that
an

aggres¬

helpful to all phases of

industry.
administration

will

We ask for the help of

can

organ¬

man

we

do

everything in its

to further the best interests of the NSTA

year.

our

organization is the

With this thought in view,

and that the results will be

the investment

espoused in

everything

for

saying that "the test of

Likewise the test of

this administration of

individuals

the constitution is beyond question
or argument.
look forward

an

fight it makes.

sive

one

•:WSB

fight he makes."

niche entirely peculiar
I feel that its worth in

promoting the

Let's

There is

fruitful

considerable

earlier

that interest

o,;.

year a

our

in the com-

entire membership

accomplish the things that should be done, i

to rally

us

1,000 strong!
J.

(Continued

on

Thomas

Gentry Daggy
page

Graham.

1142)

Established

1856

New York Cotton Exchange Bldg,

HANOVER

STOCKS

SQUARE,

N.

Y.

BONDS

New York

Stock Exchange

COMMODITIES

New York Curb Exchange

New York Cotton Exchange

Chicago Board of Trade

and other leading exchanges
Branches
CHICAGO

We

maintain

stocks

of

an

many

DETROIT

active

public

market

utility

in

the

companies

Paine, Webber, Jackson
ESTABLISHED 1879

PITTSBURGH

&

Curtis

GENEVA, Switzerland

f

Si

R

i 1 roads

a

time"

securities

what

is

I

am

in

McGINNIS*

the

a

f

verages

closed

at

ap¬

proximately
172, and the
railroad

Jones

Dow

a ver¬

closed at
55,
a
spread of 117
points.
This

ages

Stresses Reductions of Railroad Fixed

Taxes.

about

would

Charges^ and Imand Predicts Higher > PostAVar Dividend

wh|o

indi¬

lieve

be¬

trial

railroad

stocks

j

If

if y
prices
and yet ;, rail
stocks
by
can

That is not the

time.

indus¬

u st

the

take

we

stocks

those

Jones

Dow

in

to

in the

case

five

the,Dow

railroad

Jones

As

aver¬

used
been

industrial

Jones

have

no

stocks among

averages

the 30 that

up the averages that are hot
dividend payers. Every stock in

make

the Dow Jones average

dividends

for

a

has paid
period of

long

Yesterday those stocks closed at
Dpw^Jones industrial average is a
weighted
.

,

*An address by Mr. McGinnis at
Annual Meeting of the Na¬

tional

Security Traders

Associa¬

°

.

-

47

°

_

^

$81.50. In other, words, what

you as an investor are interested in
is: How

stock?

much
The

do

I

pay

arithmetic

the other.
control

a

partner

of

made

1938, the railroadsV.have

Since

.

a

motive

that

•

ml

i.

has

time

1:

City, members of the New

was

Stock

elaborate

Exchange.




101.

I

am

going to

this

a

had

to

.,

.

.

;

Ar»i«iAr»

Kr}

t»onlo/ioH

opinion,
will be replaced,
either by Diesel, iriiproved steam,
my

gas

in

man

a

central

guides the entire
of those trains
within
200-mile block, and
trains

that

meet and pass

each other without

stopping,- enter the siding and
through;;*<

go
.< .• >

That ! decreased

limitations.

its

•example, -going

toh&Maine,

a

j-,7::"

-

i Central Traffic Control

For

'

•

'

•

before the

"central traf¬

war was

fic control." Most of your trackage

west; of

the

Mississippi is single

railrpad steam locb'4 jtrack;? On the heavy, density divi-

unheard

was

of

before the

the

of

One

heaviest

costs

;when^adipose;;joinfcrit^urs

•and
one.

section
In

is

the

rail in

one

the ?

than

higher than the
days when

olden

joint, became lower

a

other,

the danger of
became present;
and it became necessary to take
that rail out, cut off the end, and
put it out on a side track. Then
"snapping

off'

in late 1940 a company

developed
"spot welding", and in 1941 it
was developed to the point where
the weld could be hardened suffi-

regular load sions/ a: freight train would- be

(Continued

page

on

1071)

HIE
-H'V

.

Aii address

of

prestige is

here have'found that;

The firms listed

sound investment.

a

headquarters in the Field Building, located

in the heart of the financial

goodwill, and distinction.

district, pay dividends in convenience,
;

:

..

•:

-r.; 'H;. /-.v.;

■.■

FINANCIAL BUSINESS TENANTS IN THE FIELD BUILDING

;

Bache

&

Co.

:t

...

Glore, Forgan fe Co.

Bacon, Whipple & Co.

Bear, Stearns & Co.
Blair

&

F: |

v.-

Halsey Stuart & Co...

'

Corp.-

Blair, William & Company

Blyth & Company,
.

Inc/'"v":';y

.1 \ ]

;

"

m.

Cargill, Incorporated
*

Cavanee,: Clark M.

J*.

"

y>

Central-Illinois Securities Corp.

>Chlcago XJorporation, IThe
Commercial

&

C.

Dickson,

R.

J.

S.

Co.
&

Eastman, Dillon & Co.
&

>

.

Inc.

Co.

■'

;

Scott

*

•

r

•'>

Forge, John G. & Co.

H. C.

v

& Sons Co.

& Roe

Straus

.

&

Blosser

.

.

Trask

&

Valiquet

-

Co., Spencer
&

Co.

Van Ingen &

Martin, Burns & Corbett, Inc.

"

Co., Inc. B. J.

Van Strum & Towne, Inc.

f

Weeden & Company

Molloy, Edward P.

Welsh, Davis & Co.

.■O

Woodruff, Hayes & Co.

v

Yantis & Co.,

Moseley, F. S. & Co.

F. S.v/-

■,;

Complete Information, Address ROBERT CARPENTER, Manager

135 So. LaSalle

:

•

Swift, Henke & Co.

;

Thomas, E. W. & Co.

Milwaukee Co., The

-

Company4

Stranahan, Harris & Co.

^

Mesirow, Norman

\

.

Selected Investments

Stein

LaSalle National Bank

/

Inc."

Speer,

'

Mason, Moran & Co.;

•

Wyandt, Inc.

.

;

Security Supervisors,

Shields & Company

Ladd, Henry

•:

4

Slayton & Co., Inc.

McMaster, Robert F., «te Co.
-

&

<

Kidder, Peabody & Co.

Lizars, Rawson & Co. <

'

-

Bons; Inc.

Johnson, Joseph M. & Co.

Fiduciary Counsel, Inc.

For

^

4

v

Federal Deposit Insurance Corporation

Gerwig & Gerwig

;

Mabbett, R. H. & Co.

;

-

Co. ^

Lewis, Benjamin & Co.

Inc.

Co.

&;Co. i V

Lillig, George J.

:-'V'

&

Doyle, O'Connor & Co.

Fahnestock

:

^

^

""

Dempsey & Co.

Rothschild.^ Co.

La

Financial Chronicle

Corbrey & Co.

Devine,

;

Harris, -IJpham

Kitchen & Co.

,

,.

Rolltak

HrischC&r

Tbo

Ranson-Davidson Company,

^

.

Harriman Ripley & Co., Inc.

Jacoby, Louis

ByUesby,^H. M. A GqJ.
Carlton; F. A. & Co.

-OtU & Co.-'

Hickey & Company *

■

Boettcher & Co.'
Brown Brothers, Harriman & Co.

Nuveen, John & Co.

r

Graham Parsons & Co.

-

Company, Inc;

Blair Securities

Mullaney, Ross & Co.

Gofen & Glossberg

Street, Chicago

*

'"HSU.

iri

railroading is the maintenance of
rails.; Eventually a joint loosens

other.

'^Another thing we did not have

from ,Bostonlto

motive' carrying "a

That

war."^he^War Pibdrictiori Board
allowed ipnly;a Yery^mall;amount
of it to be built, during the war.

turbine or jet propulsion.

costs.

railroads is

motive

try

-,

The ambition of engineers

grades

bit and attempt

-

,.

mw'i

in

averages ;

on

Then too, we may have
turbine and jet propulsion.
majority - of our Steam

locomotives are obsolete, and .in

-

.

York

-

.

it has

and

gas

This is tremendously injiportant,
railroad ;■ motive
because it is one of our greatest

revolutionized
power.

1

introduced

been

period; of

tm

on

A* great-

is in1 *«_
as good shape as it ever has"
been in history. The Diesel loco¬
l.

it than have been
the- steam• locomotive; in
on

25 years.

about 2 billion • dollars on
their fixed plant. • The main line
of
railroads today
c- the American
.—
—
spent

of: the Mechariicsville,.> which-is near Al¬
Pflugfelder, Bampton & Rust, New five, regular dividend paying rails bany ondhe main line of the>Bosr
York

One

tower

movement

provements

method

$81.50, arid the;

is

all
single track,! several
going one way and several

tion,
trains

Pennsylvania claim has more im¬

always to reduce
because the steam loco¬

Mr.

sevbral

v

on

average of the stocks in the Dow
JoneS - averages" yesterday.; was

McGinnis

Leijjs assuiriey

"riian ^hours'? saved; were

Railroad Improvement ?

for the

tion, at the Grand Hotel, Mackin¬
ac Island, Michigan, Aug. 29, 1945.

;

...

out/

go

you

share each Of

one

the Dow Jones averages, they will
not cost you. $172; they will cost
you

.

the

If

average.
.

today and buy

course

they might have had

trains running in a 200-mile sec¬

^

on

The railroads in peacetime

week.

—

,

Dow

the

transportation
impres¬ cost by large amounts. It has made
sive. Dieselizationhas also caused single tfaek almost as efficient as
are
going to be so different, in
y
improvement' in the older means double track.
my opinion, from the railroads be¬
The "corollary to that is that
of transportation, the steam Iocck
fore the European war started,' in
central
traffic
control
motive.
Last year the Pennsyl¬
can make
1939, that there is hardly k resem¬
vania built ' a- new steam loco¬ obsolete one track of double track
blance, either financially or physi¬
or
two
tracks
of
motive / WhichVB^dwih ;and the
quadruple track.
cally.
' J;
' -v.

which have regularly paid
t h e Pennsylv a n i a,
which has paid dividends for 98
•Patrick B. McGinnis
their price inyears; Union- Pacific, which has
d ic a t e that
paid dividends every year since
their period of success is over,
it was organized in 1895; the Nor¬
i
Without any intention of trying folk & Western, C&O and L&N—
to belittle the Dow Jones average, the only- time that any one of
in my opinion, it does not indi¬ those five stocks have not paid a
cate the difference between* in¬ dividend was in 1933, namely the
dustry ; generally and railroads,* L&N. Those are our five regular
because in
the
first place the dividend paying railroad stocks.
ages,

dividends

bit

a

In

Several;, companies •
developed
method * of central traffic
con-

a

this Dow would have to split the train three
times to go over the mountains.
j, v *A single Diesel pulled a regular
you know, it is constantly
load all 'the way non-stop from
against the rails, and lias
The
used more so in the -;last Boston ' to Mechanicsville;

enlighten you

again.

of 200 miles

Jones average.

averages.

switch

to do that many times.

Groups of Railroad Securities.

in

deal

.

.

the

proved Management
Payments.
Analyzes and Gives Opinion on ^Various

cate that those

securities

going along, another freight train
comings toward; it, arid they would
Have, to stop brie train, manually
throw
the ; switch, go - into
the
siding, wait, get out and throw

Railroad

going to try

today. Yester¬
Jones industrial

Dow

;

.

Security Expert, Commenting on the Disparity of the Dow-Jones Rail
and Industrial Averages, Points Out the Defects in ;Using These Averages as ;
a Basis for
Judging Values. Calls Attention to Physical'Progress Made by :.
the Rails and States That They Will Be Enabled to Meet Competition,
«
§
Though Earnings Will Decline in Post-War Period. ; Notes That Rails
Have Been Paying Less in Dividends Out of Earnings Than Indus¬
trials and Will Be Relieved of Heavier Payments of Excess Profits

peace¬

to forecast to you

day

Peacetime

in

By PATRICK B.
"Railroad

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1070

:

;

,

'.•.

A

A ttac k

n

o n
By EMIL

As

for ;"some

tention

focused,

time

has

Mr. Schram,
Noting the RecentAttention Focused

been

to S an

unusual' extent,
upon the securities' markets. Many
persons, espe"
' 14
daily those
engaged in the
-

*e<?

•

i

iti

business,
this

Exchanges Are
Board Are

es

find

Course

difficult to un-'

to

derstand, con¬
sidering thef
fact that

ket

Reported.
'Voltirtie

mar¬

last

and

of

two

no

1940

•_

1939_._

normal

1938

proportions;
that is, if
it
be

can

that
any

the

1937_J._
1936

1935___

said

there

is

norm

in

1924

1933-.1932

business.
has not

1931—

Emil Schram

securities

1930—

Certainly,
been

the

1929—

volume

of

exceptional size
when compared with the business

List at

Year-end's

1,492,277,716
1,489,367,030
1,470,502,630
1,463,295,021
207,599,749 •<" /1,454,761,737
262)029,599
1,435,404,562
297*466,722
1,424,252,369
409,464,570
1,412,002,738
496,046,869
1,360,349,902
381,635,752
>1,317,847-662
323,845,634
1,305,421,004
654,816,452
1,293,299,931
425,234,294
1,311,881,157
576,765,412/
1,318,729,621
810,632,546
1,296,794,480
1,124,800,410
1,127,682,468

1941___

more

than

on
.

263,074,018
278,741,765
125,685,298
170,603,671.,

1943-_.
1942

has been

years

».

The question often is put to

me:

(Why is it that the stock

that" was done "in; our markets in
'the years prior to
1940, \ <
•

| whenever
attracts

it becomes at
much

so

market*
all active,

public attention?

I Here

gestions for further restrictions

on

our

market, the New York Stock
Exchange and" other units of the

other

in that

now

public scrutiny; and interest.
The. New York Stock Exchange
-

arid other securities
organizations,
for very obvious
reasons, are more
anxious
than
any
government

speculative

past, and that there is not

widespread margin

any

ulation

such

as

we

In spite of the fact that
any in¬
crease iri market
activity brings

1944, inclusive:

well-intentioned but unsound sug¬

Railroads in Peacetime
(Continued from page 1070)
streamlined
trains, all coaches
to steel.
Now ! with reclining
chairs, and recapwhen you get a joint like
that,* a 1 ture a great deal of the business
maintenance man goes out with a i which
they lost to the busses.
gadget and shortly the joint is
^Frankly, I dbn't\ think the; busses

ciently to adhere

restored.

will

/Another thing that has been de¬
veloped since the war is the Sper-

have found out that their profit is
in "short haul'' travel rather than

•,

rail.

One

detecting
of

the

fissures

greatest

in

care

much, because they

very

"long haul."
I

causes

think

the

air

lines

will

take

spec¬

witnessed

in

the 1920's.

The New York Stock Exchange
and the Federal, Reserve Board
have proof of this. At the request
of the Board, which has
authority
to fix margin requirements, the
Exchange recently asked its mem¬
ber firms to report the total of
open margin accounts on their

would be*: disastrous.

books.

We may be
reasonably sure that many of the
abuses of: the 1920's will not recur.
I say this because
manipulation

The total of all such

to

use-

prevent excessive
of credit in our markets.

No
that

one can

we

In

will

1944

cess

Atchison

profits

share/

To

say, with certainty,
will not have an¬

or

tax

paid in
alone, $48

mention

a

few

are

for the end of

Federal
have

Reserve

this

number

this

more,

somewhat astounding. There

Atchison

paid,

last

year,

as

mar¬

no

period
tively engage in business.

finance
This in¬

to

loans

does, not

and

debit

indicate

for the Board

man

the

press

quoted in

was

was

hoped that the increased margin
requirements

would

quieting influence
I

this

take

Board

to

act

as

a

the market.
mean
that
the
on

expected

that the action
might reduce public participation
in the market or that it
might re¬
strain prices. ■> Whatever the pur¬
pose, the step is an- attack on
symptoms.
Unfortunately, t K e
gesture may lead people to believe
a realistic effort to pre¬
inflation. It is not realistic

that it is
vent
in

I

sense.,

any

Federal

Reserve

realize

over

tential

which exists,

the

is

the
con¬

inflationary po¬

but I

to

the

pursue

is

that

Board

cerned

strongly^that t;he only

ac¬

ex¬

saying that it

as

not

to

bal¬

any

of credit. The question

use

did

incentive in!

reconversion

used

transactions.

brokers'

The

margin accounts

wise there will be

In addition to that, in
1944, in
overtime payments, the figures

again,

information

of open

feel

course

to

which would reach

one

the root cahses of the
problem.

•

expect higher wages on the rail¬
roads, and likewise higher rates.

There is no reason why the rail¬
Before the war, railroads were; roads; can't get higher rates if the
automobile companies are
under
going
industry
generally
in;
to be allowed to charge
substan¬
wage payments.
Now they are!
over

industry

fore the

were

Board

per

•

November,

1938, when the total of open
gin accounts was 256,504.

ex¬

the
Coast
Lines
paid.
*$39
a
share; the Nickel Plate almost
$50 a share; the Illinois Central
$26 and the Union Pacific, $47
a share.

ac¬

counts, as of June 30, 1945, was
only 137,752.
The most recent
previous comparable figures avail-'
able

being

arises, therefore, as to the Board's
purpose in. increasing margin re¬
quirements at this time. A spokes¬

ex¬

agency - or other organization or
group, to prevent a repetition of
1929; It is well to keep in mind
the experiences of 1929 because a
repetition
of
those
experiences

power

the list

on

year, from 1929

for

credit

of

We do know, however,
there has not been, in the

that

inform¬

formation, reflected in the record

citement.

recent

business are., fortunate
they are exposed to close

of

season

i

course, as to the amount

securities

ances,

securities

r

total number of shares
at the end of the

car

of

Symptoms" and Asserts That Only
.Offset Any Inflation Potential Which Exists Is

.

ry

promulgated, on July 5,
increasing margin require¬

ation, of

on

i$ the record of reported I do riot have the answer. 4 would
has been outlawed and because
share volume on the New
York guess that one explanation lies in the Federal
government today has
Stock Exchange, together with the
recollections of 1929.
the

to

it

rule

ments from 50% to 75%
The Board
did
have

Avoid Repetition of
Margin Rules of the Federal
to

Reach the Causes of the Problem.

Total Shares

for the Year

1944..".

ha If

a

to

Government

as

Says Recent

"Attack

when
a

cessive

activity in

the

an

Pursue

to

the Securities Markets, Con-

on

Been Normal in Last Decade and That the

Anxious

as

l^nditionv
Preceding 1930.
Reserve

little

a

Stock Transactions Have

p

,

sec u r

s

President of the New York Stock
Exchange

knows, public at¬

everyone

Symptom

SCHRAM

war

generally.
they were not

petitive
with
and
duPont,
and

General

workers

were

Be-;
com-,

tially

more

for

cars

than

before the war.

After

the

last

they did

Dow

Chemical

Allied

Chemical

somewhat

Electric.

Railroad

had wage

increases, between 1920

underpaid in rela¬

and'1930.

Now that all transpor¬

the

war,
we
had
situation. We

same

in overtime, $10 a
share; Chicago tion to industry generally. Now tation is regulated, rails will not
the'major..portion of .the Pullman
North Western, $11' a share; Nickel they are above the
headaches to the railroad engineer!
average for have to worry about raising rates
business; and I rather hope they
is that steel, under certain tern-?
do, because, in my opinion, the Plate, $18 a share. Those that industry. So the rails are no longer because we might lose business
were hit the hardest
peratures and pressure will fraic-' railroads" lose
by EPT will in that vulnerable position. Per¬
money on the "long
gain the most by the repeal of sonally, I think prices and wages to competitors. If railroadi rates
ture. It just shatters like sand,
[ haul" Pullman business. In the EPT. If we
know anything about are going" higher. I see no other are raised, trucking rates will
If you bought 20 miles of
bp
rail, second place, the air lines tell us
let's say, in 1940, and you devel-> they are going to get the rate taxation, we are going to get the way of servicing 300 billion dol¬ also.
complete repeal of EPT. Other¬ lars worth of debt. Therefore, I
oped four or five fissures in it,: down to 3Vz cents a mile.
It's
(Continued on page 1134)
of wrecks and

of the greatest^

one

in normal times the alarm was so
great that the entire 20 miles of

AVz cents

rail

would

3*4 cents,

and

1941

veloped

be

the

taken

Sperry

this

people

Now

car.

In 1940

up.

you

fissure

a

in

the

rail

operation alone has
of rail maintenance

Passenger

cut

business.

cost

about 50%.

be

Better

passenger

Ordinarily the railroads
a year
carrying pas¬
In my opinion, the cars

or

travel

to

you

for

were not

fit, ordinarily, for
occupation ;• yet the rail¬

human

roads were forced

to

run

them.

Island.

extent

The

the

on

Hock

Island

Rock
man¬

agement, rightly -so, said, "If we
must run these
trains, let's, give
the public
something to ride in."

They

now

are

point where

approaching

about

passenger trains

50 %

are

the

of

the
their

stream¬

lined,
air-conditioned
Rockets.
They were making money on
them-—even before the war, and
I

believe they will after the
In

my

ger

opinion, all the

cars

which

and

1939, with

me

streamliner

dismantled
should
ient
I

be

existed

exception of
cars, should be

"junked,"

Pullmans

of

a

mile

with

a

an¬

should

rate

of

a

air-conditioned




Railroad

that

are

the

v;

■

interested in

■

./:/;

.

,:v

• -

t,

'

.

/

-

offerings of

High Grade

Management

:

y

the

in

better

Public

most

Utility and Industrial

In any event, railroad man¬

agement is
fact

that

conscious of

now

they

the

have

PREFERRED STOCKS

nothing to
service to the

but

service,
public, and the public is going to
uses the service which they prefer

regardless; of

arguments

/

about

subsidization.
'

On thei question

railroads

are'

ofstability, the

service industry,
as industry
generally. Competition with truck¬
ing and bus services in - peace¬
and

they

time

are

will

ICC

and

,a<

as

be

by

erating

ratio

stable

regulated
the labor

Even before the

war

was

s

Spencer Trask & Co.

by the
unions.

Members New York Stock

the truck op¬

up

to

changed,

Exchange

Members New York Curb Exchange

r.,......

\

•-*

7

/

*

around

25 BROAD STREET

96% and unless the working rules
are

taxes reduced,
and rates increased, I doubt if pri¬
vate money will ever again try to

135 SO.

NEW YORK 4

g&s

—

"

Bell

LA SALLE STREET

CHICAGO 3

Telephone HAnoVer 2-4300

finance trucking companies.

Prospective Reduced
On

railroads

so

t

We

Telephone Andover 4690

System Teletype—NY 1-5

f

as

vintage.'

believe the

eventually introduce
pent

1938

the

and

the

war.

passen¬

in

business

been for

cases.

sell

The revolution that is going to
occur has
already .happened to a
considerable

that
years

will change over the next two
three years. In my opinion it

or

has

offered

five

Almost all railroad management
has changed in the last decade,

sengers.

were

hopes

or

railroads will at least break even,
which means a gain of millions

lose millions
which

have
four

in net income.

change in

the

at

by

I

next

sufficient

Business

Another tremendous
peace time will

the

by

cents.

the

over

Pullman

you can travel

the equipment which the railroad
offers will bring back to the rails

it

dumps a bit of whitewash and
they take the rail out. That one

when

Therefore,

this car, or you buy one. It
goes
along the rail and when it dis¬
covers

travel

air at

de¬
hire

I question whether

now.

will

you

the

question

of

Costs

Albany
excess

profits, the railroads were hit the
worst; far worse than any other
industry.
11:

Boston

Glens Falls

Schenectady

Worcester

I

THE COMMERCIAL & FINANCIAL

Atlanta Bond Club

MEN IN

NSTA

Craig Barrow, Jr.

Thursday, September 6,

CHRONICLE

1945

Bond Traders Club of

SERVICE

Kansas

City (Mo.)

King Baker
W. E. Bilheimer, Jr.

Frank A. Chisholm

Harrison Clarke

Laurence B. Carroll

Malon C. Courts

Jack F. Glenn

Francis G. Kulleck

^

Remer Y. Lane

Claude

McDonald

Frank J. Meyers

Russell

Sparks.

Gary Steinback
Jack

Baltimore Security Traders
Association

Strandberg

Jack Wheeler
A1

Wolfgang

•

<

Bond Traders Club of

William H. Boggs

William A. Brown

Portland (Ore.)

Robert P. Chambers
Jack C.

-

;
-

Creech, Jr.
Alan F. Daneker

Homer J. Bateman

Wallan E. Frazier

Bernard E. Eberwein

'

jj

Hess ;

J.

John

Lloyd R. Freeman

.

Pierre Kosterman

Malcolm G. Keech

Llody E. Ligge
John Littlehill

Howard L. Kellerman

\

David C. Kratzer
David G. Mcintosh V*
:

-

•

Bond Traders Club of

Benjamin Mitchell, Jr.
Joseph T. Netter, 2nd

Seattle

Charles A. O'Connor
William C.
Albert N.

-

f

,

C.

J. West

Salters

R. E. Daniel

;

K.

F.

Powhatan

Jack Rhode

Julien F. Weber

Conway

Municipal Bond Club
of Memphis

Alff

Arthur F. Bosworth

„

Glenn B.
Lester

Early Mitchell

Brown

Hugh Sinclair

Fedderman

Jack W. Fuler
Norman

F.

Saunders, Jr.

M. A.

Clark

D.

Galbreath

Jack

Alfred G. Brown
F.

Zwiebel

Gordon

Bond Club of Denver

Donald

Meyer

Muckley

J. E.

Charles C. King

7 John

Easter, Jr.

Donald A.

J Albert C. Brocar
'

i

Easter

K.

Edward

Thompson, Jr.

Bond Club of Louisville
•

Campbell

A.

Colin

Roberts, Jr.

Security Traders Club

Godbe

Jackson F.

King
Channing F. Lilly, Jr.

of Saint Louis
J

Leon Macart

Thomas

Raymond W. Maxwell

Victor Battefeld

Jack N. Mowbray
W. F. Nicholson

Joseph

Donald L.

Ayres

Charles Baucom

Bronemeier

,John Bunn

Patterson

Joseph Raichle

Clyde Clark

Fred

Earl

H.

Wood

George S. Writer

Bond Club of Houston
Robert B. Moroney

Walter W. Todd

Wilbur Frederiking

Lewis W. Pollok, Jr.

Milton R.

,

Underwood

Security Traders Ass'n
of Los Angeles

Oscar W. Rexford

^

Herbert M. Roach

OVER-THE-COUNTER

Wm. H. Taussig

Kenneth Theiling

Goldschmidt

Vincent Zerega

Max Hall
Parkman Hardcastle

Dallas Bond Club

J.

Partner

in

DEPARTMENT

Charge-—!). Fred Barton

Utility Bonds—

Street

Public

Albert W.

O. V. Cecil

McCreedy
Elmer E. Meyers

Lewis

William A. Miller

Wm. N.

Kenneth H.

Landon

MATTHEW

/

Thompson

A.

Foreign-

J. McCABE

HENRY S. BARTOLD

Industrial Stocks—
WERNER G.

JENSH

*:-;>yVv

W.

Baum

■;

.

Walter

Cooney

Wm. P.

•

Chicago

•

&

William

Co.

A.

Grigsby

Charles J. Hofer

New Orleans

Fred

F. Johnson

W. W.

Teletype NY1-752
•

Reading

•

Easton

•

Paterson

•

Hartford

Ed

Private Wires To Our

First California

Nelson

Correspondents

Company, San Francisco"
Douglass & Co., Los Angeles




,

'

•

Rogers & Tracy, Inc., Chicago
Scherck, Richter Co., St. Louis

Dunbar

Wesley Gleason

Jr.
Manion

f

Leon Newman
Morris

W. Newman

Rudolph Schjott
Palmer

E.

Liening

Smith

Roswell J. Weil
•

Paul M. Ohnemus
M.

Walter D.

;.F.

A. M. Leary,

Leahy

Nathan

Ladd Dinkins

Charles W.

Lawlor

Donald R. Muller

Security

Ford Hardy

Hugh Kearns
Clyde H. Keith

STREET, NEW YORK 5, N. Y.

Los Angeles

vl,v.

Smallwood

Traders Association

Edward A. Leinss

Philadelphia

Miller

Fritz Stewart

James E. Czarnecki

William

,

Jr.

Miller

Richard Cooley

MEMBER NEW YORK STOCK EXCHANGE

■

A. Jackson

Will

Wade W. Clutton

*

Halsey Settle
•

J. Smith Ferrebec

BOwling Green 9-3151

Jr.

Huguenin

Jack G. Moss

B.

J. N. Faust

15 BROAD

B.

N.

Jack Danner

<

A. Freear

Frank

Frank H. Buller

JOHN W.BAIR

HARRY W. DELITCHER

Eastman, Dillon

Diamond
Edwards

Joseph G. Ballisch

George Fabian Brewer

Institutional Securities—
CHARLES F. PRELLER

Carroll

W. C. Jackson,

Paul J. Bax
.

Beckett

John P. Hall

of Chicago

Utility Stocks—

HENRY ROBSON
,

James S.

Thomas

The Bond Traders Club

HENRY E. GRAY

Industrial Bonds—

Earle Jardine, Jr.
Joseph LaPuma
Henry F. Link

R. R. Gilbert,

Representative—

J. LACHMAN

Stein

Elliott H.

.

Pierce R. Garrett
Paul G.

Jr.

Frank E. Pelton,

Davis

Donald D. Foss

Newcomb

Lowell

Tarleton Redden

Fred B. Callender
Preston R.

Murphy

James B.

Milton C. Brittaih

TRADING

Morfeld

Edw.

A. W. Snyder

Gordon Crockett

CARL

Moore

Wickham
Fred P. Hamill

V

.Public

Haverstick, Jr.

Hay ward F. Hoch
Edw. J. Holstein

Henry Biessner
Claude H. Crockett

Essert

Edw. E.

Silberman

George R. Torrey
George R. Wahlquist
Richard J. Wallace

Walter

Weil, Jr.

Boston Securities

Traders

Association

7

Thomas J. Walsh

Edward S. Amazeen

Raymond C. Wauchop
Chapin Wright

H.

Hale

Atherton

/Pnn+irtnpH

on

.

13303*"

'

Number 4418

162

Volume

THE COMMERCIAL & FINANCIAL

CHRONICLE

1073

Expanding Post-War Investments
By

American
war
has
brought in its wake an expansion
of
speculation and
investment.
Even after the Revolution, more
Every

than

a

tury

and

cen¬

a

capital¬

ism"

was

i t

infancy,

s

there

in

was

distinct

Estate

Participation Ventures as Well as Renewal of Foreign
Investments. Urges That Both Investment Dealers and Traders as
Well as the Public Be Better Educated in Investment

a

and

awakening of

change

specul

dence

t i

a

v e

May

on

of

all

1792

17,

is

evi-

this.

enterprise and
dented
risk

i

taking

ventures.

only

n

Not

were

trade

the

and

shipping projA. M. Sakolski

t

e C

which

S

interrupted by
the
and expanded, but

were

renewed
fields

of

material

sought after.
then

almost

ica,

and

prised

gain

unknown

in

became

field

of

either non-in¬

ment

speculative

activity.

Yet
soon

invest¬

in this pe¬
gained
the world wide reputation of be¬
ing venturesome speculators and
riod

that

It

and

unconscionable

cuniary gain.
period, when
and

bank

was

Americans

And it

stocks

Hemisphere.
tion

of the

was

The

pe¬

in this
bonds

first pub-

were

born

was

after

Government

lically dealt in, that
market

first

seekers

a

securities

in the Western

first

New York

organiza¬
Stock

received

stimulus,
shares

a

and

of

sort

violent

bonds

new

and

were

vestment
ened.

Ex-

trading
sorts

in

the

securities

of ventures became

of
a

all

fash¬

ion, and dominated the American
spirit for gainful enterprise and
risk

taking.

The field of invest¬

ment

was

fied.

It comprised not only lands,

broadened and diversi¬

urban real

estate, banks and rail¬
roads, but spread into public util¬
ities
was

and

industrial

concerns.

It

at this time that the great

in¬

dustrial

"trusts"

were

born

and

developed rapidly—expanding in¬
sorts of undertakings, from
whiskey production to rope mak¬
ing.
Securities markets and se¬
to all

curities
many

trading

localities

sprung

up

have

and

in

been

Aftermath

outburst

of

with
sive
it

was

in

spirit of

by restrictions, reg i

the

very

nature

have

been

fruitless

of economic

complaisance, looking

tion be curbed?

provision for

Can specula¬
If abated in one

their

material

(Continued

old
on

their

and

their

page

1140)
»H|

Congratulations!

of

Born

dividual becomes possessed of in¬

He

creasing wealth, the spirit of risk
taking among the population does
should

become

more

in

West

Union,

Out

Iowa

way,

is the President

Of

wide¬

He

spread.

So, it was no abnormal
phenomenon to see a larger pro¬
portion of the ordinary people
ever

NSTA!

lives in Kentucky,

Of Louisville fame,

With

before buying securities

The Bankers

Bond

Co.,

and

indulging in speculations with
their surplus
funds. The sale of
Liberty Bonds to millions of the
people
may
have been
partly
responsible
in
stimulating
this

Tom Graham's the name!

Head

of the traders,

He'll

now

lead

the

way,

movement.

Now,

we

aftermath

will
of

soon
a

Backed

have another

victorious

public

seek

new

by all traders

war!

Of

Thomas Graham

the

care

welfare,
age

NSTA!

fields
Can

spirit of striving for greater

szsy*1

WIRE

SERVICE

BETWEEN THESE CITIES

IN PITTSBURGH

TRUBEE, COLLINS & CO.

TROSTER, CURRIE & SUMMERS

YOUNG & CO., INC.

WESTERN NEW YORK SECURITIES

OVER THE COUNTER SECURITIES

WESTERN PENNSYLVANIA SECURITIES

IN CLEVELAND

IN DETROIT

IN ST. LOUIS

GILLIS, RUSSELL & CO.

BAKER, SIMONDS & CO.

FUSZ-SCHMELZLE & CO.




t io n,

a

merely to government to take

field will it not crop out in a new

IN NEW YORK CITY

MICHIGAN SECURITIES
.

t

cratic paternalism that the popu¬

and

EFFICIENT SERVICE MAINTAINED

OHIO SECURITIES

m e n

ven¬

stifled

so

pensions, doles and other bureau¬

detrimental, to the national spirit.
As time progresses and the in¬

the

IN BUFFALO

whole

Nothing else could have
expected—and
repression

INTER-CITY
FAST AND

the

of

But, in line
optimistic and progres¬
spirit of American enterprise,

for the investment of funds?

the

will

of in¬

ulation

throughout

Or

turesome enterprise be

still further broad¬

Will

centers

curbed in speculative activities at

specu¬

maintained in all the leading pop¬

nation.

have another

Americans, if

recounting.

things.

than

we

Will

home, seek "easy money" abroad?

wealth be subdued?

the

was

and

Will

What happened then hardly

needs

been

pronounced and active

a

another

would

,

were

ects

I

lative fever, and the field

not until after the Civil War that

Amer¬

bearing or in default.
these, along with wild lands,

de¬

war

existing securities com¬
the
state
and
federal

debts, which

same

new

were

terest

much the

was

widely distributed
among the population. But it was

were

Corporations

There

velopment after later major wars.
Following the War of 1812, man¬
ufacturing ventures, as well as
canal, turnpike and mining proj¬

War

Following the first World War,
many now living know, there

was

in¬

dulgence

as

The Post Civil War Expansion

unprece-

World

direction?

Florida boom?

lation will be led into the serfdom

Principles.

widesp read

a n

SAKOLSKI

Speculation Activity After Our Major Wars, and That, in Line With Our Past
Progress and the Spirit of American Enterprise, Increased Investment Will
Follow This War Unless It Is Prevented
by Stifling the Spirit of Risk
Taking Through Governmental Restrictions and Paternalism. Sees Prob¬
ability of Growth of Properly Regulated Investment Trusts and Real

half ago, when
so-called
"fi¬
nance

M.

A.

Dr. Sakolski Points Out That There Has
Always Been Increased Investment and

MISSOURI SECURITIES

&(

"0'
■■

Inquiries and orders invited

ST?

THE COMMERCIAL & FINANCIAL

1074

Thursday, September 6,194s

CHRONICLE

The

Medium and low Priced Shares Outlook

Advertising Committee

By L. D. SHERMAN
Co., New York

L. D. Sherman &

of Expanding Corporate Earnings, In¬
vestment For Appreciation, Rather Than For Fixed Return Offers Greater
Advantages, and That There Are a Great Many Smaller Corporations Whose
Securities Offer Opportunities for Substantial Profit

Mr. Sherman Holds That With Prospects

dramatic

The

minating" in
have

war

years,

a

close.

relocation

of

We have

decline in the volume of business

the

in

and

ure,

yet with
prodi¬
gious expenditures, our

posits.

all

considerations.

our

on

far

a

import

to

our

Into the

a

We
basis
for

Let

close

find
of
many

envy

able

is

the

fact

can

for

be

made

practical

limit.

without

no

potential amount of

which

credit

to

The

individuals

The
.

as

avail¬

purposes

resources

evidenced

of

by

savings bank deposits and life in¬

of
Lee Sherman

surance,
ume

un¬

employment and post-war depres¬
True, there will probably be
unemployment

during

the

period of adjustment, necessitating

have increased to

a

vol¬

before attained.

never

Industrial requirements for res¬
of
capital
assets,
for

toration

installation

for

goods

of

addition

and

plant and equipment

to

greater'

are

the

and

of the

economic

advantage.

own

restricted

Thru

institutional

or

pur¬

their

funded

redeemed- their

debt

preferred

also

us.

recog¬

its most
financially.
your efforts in assisting
Advertising Committee,
1945

high for

W

as

year

have made

we

Harold B. Smith

outlook

Except for

poses,
investment for apprecia¬
tion,, rather than for fixed return,
seems more advantageous on the
eve
of
a
period of expanding
corporate
earnings.
Numerous
corporations have reduced or re¬

tired

the year

nize

problem of the investor is
application of

will

NSTA

outstanding
your

promising

responsibilities before

The

course—the

to his

be

upon

projects with vision are needed/"
and our organization, through
a
membership of individuals,
will demonstrate its acceptance

promises to become the
of the world. All this, to¬

The
—of

will

world

to assist in their
development. Constructive

prosperity.

billion

hundred

three

to

dollars.

called

technical progress and

market

financial

the

gether with the proposed down¬
ward adjustment of the corporate
tax structure, augurs well for an
extended
period
of
sustained

from

grown

billion dollars. Our
public debt has expanded from
about thirty-two billion dollars to

sion.

some

has

circulation

twenty-four

basis.

of

be realistic: our currency

us

Many new fields of industry
will, be established, and we of

services

about five billion dollars to almost

war

domestic

i*

con-

destruction^

-

products insure a. large con¬
sumers'
demand.
In
brief, our

the

of

entry
war.

the dire proph¬
ecies

history

in

about

peace

the

in

prior

transition

from
a

of industry,

Amazing historv

,

Railroad equip¬

new

United States.

Much has

written

greater

the well defined pros¬

are

period

more

been said and

our

transient

far

1945 has been most .outstanding.

year

being recorded and unbelievable inventions have brought about
J.
ditions that mankind is now
endeavoring to : reconvert
to
benefits
for
civilization—not

industry
is
on
the
threshold of the greatest expan¬
sion in a decade.
In every field

which will dwarf any peace

ness

rests

than that pre¬

vailing

are

Of

before.

'

.

building

pects for a volume of peace busi¬

basis

solid

these

ever

The

ment, way and structure is in
urgent need of replacement. The

of bank de¬

velocity

Yet

than

re¬

tooling, there may be a temporary

sacrificed much in life and treas¬

economy

Pending

labor.

victory,

triumphant

drawn to

cul¬

Fellow Members:

our

a

new

all-time

Alfred W. Tryder

treasury.

accomplishment has been due to the energetic efforts of

This

District Chairmen: Bert H. Horning, Stifel, Nicolaus & Co.. St.
Louis, Mo.; Josepf C. Phillips, Pacific Northwest Co., Seattle, Wash.;
Ray P. Bernardi, Cray, McFawn & Co., Detroit, Mich.; Don E. Summerell, Wagenseller & Durst, Los Angeles, Cal.; Joseph H. Weil, Weil
your

and

stock

Bear, Stearns & Co
Members New York Stock

STATE

AND

Exchange

MUNICIPAL

Bert H. Horning

BONDS

Josef C.

Phillips

Ray P. Bernardi

U. S. Territorial and Insular Bonds

NEW YORK

CHICAGO

Underwriters and Distributors

D.

E. Summerell

T. G. Horsfield

Joseph H. Weil

&

Arnold, New Orleans, La.; T. Geoffrey Horsfield, William J. MerCo., New York, N. Y., and Harry Barclay, Caswell & Co., Chi¬
cago, 111., in cooperation with Hal Murphy, Ed Beck, A1 Reynolds,

icka &

and
our

we

F.

V.

Reilly

To

Reynolds & Co.
Stock

Exchange

"Financial

heartily for

New York Curb

Exchange

Chicago Board of Trade

Commodity Exchange, Inc.

A. W.

a

convention year.

capital

obligation.

of

common

stock

issues

mount

occupying

OFFICES

a

leading

position
industries

their

respective
selling at prices

PHILADELPHIA, PA.

ALLENTOWN, PA.

LANCASTER, PA.

SCRANTON, PA.

POTTSVILLE, PA.

YORK, PA.

popularity. There

EAST

MORRISTOWN, N. J.

BRIDGETON, N. J.

great




SYRACUSE, N. Y.

the

and

choice of proper media is of
para¬
importance.
Stocks
of
larger, well known enterprises

NEW YORK CITY

not

many

well

the

public whose securities
so-called
gory

and

general

are

in the

"medium-price"
it

in

reflecting their

to

is

in

relatively r greater

this

profit

field

#

ing

provides an

power

factor

of

leverage.

low-priced
the

common

serious

investor's

important

Medium and
stocks merit
consider¬

are

are, however, a
smaller corporations

known

may
be found.
The
capital structure, of these
enterprises and the anticipated
substantial increase in their earn¬

for

small

There are, of course, thousands

The Sherry-Netherland

Committee,

Tryder, Vice-Chairman, Advertising Committee,
Co., Philadelphia, Pa.

until their common stock is their

ORANGE, N. J.

support and

W. H. Newbold's Son &

sole

Broadway

BRANCH

Herb Seibert,
say—"Thanks;

Smith, Chairman, Advertising
Collin, Norton & Co., New York, N. Y.

Chicago Stock Exchange

Empire State Building

and

Harold B.

Philadelphia Stock Exchange

120

Chronicle,"

recognition.

your

K. I. M. next year
may be

Members
York

the

advertisers and boosters, may be praise your

our

thank you most

New

of

fellow member, Publisher and Editor.
May we
are most
deeply grateful for what you have done."

cate¬
that

opportunities

ation.

indiscriminate

While
tive

purchases

mended,

it

opinion that
funds

be

ment in

priced

is
a

are

our

portion

diverted

to

not

specula¬
recom¬

considered
of available
the

invest¬

medium-priced and low-

common

shares.—

Volume

Number 4418

162

THE COMMERCIAL &
FINANCIAL

CHRONICLE

1075

By THEODOR M. VOGELSTEIN

"t

Mr.
is

There

at

present

Vogelstein Noting That Though Many Americans Seem to Dread
Investment
Abroad, Asserts There Will Be a Necessary Trend for the Richest
Country,
Like the Rich Individual to Seek Investment
With Surplus Funds. Points, Out
C That, as in Private
Finance, Successful Foreign Investments Need Not Re¬
quire Redemption or Liquidation by Transfer of
Funds, Since a Rich
Nation Does Not Wish to
Repatriate Its Capital. * Argues That Great

curious

a

contrast between the American and
the

British

attitude

toward

xor^

c

eign investments. The British are
worried
the

over

de¬

great
in

crease

for¬

■

realistic.

while
the

holdings

which

they

pelled to give
up

part

as

nations which will

(including

their unfavor-i

have

able

fellow cannot help it. -He must go

foreign"

balance

ing

the

same

in:

the

first

War.'

But

during

the

inter-war

1931

with

full,

a

until

they had

tried

remarkable, if not

in bonds and shares which
may go
down, or leaves all in bank bal-,

do the

a

success

to reestablish their old

position as
international creditors and inves¬
tors.

Despite

some

former Key-

nesian

theories, the English are
longing for the day when their
foreign holdings and foreign lia¬
bilities will again be in balance.
(
A great number of Americans
seem

to dread the idea of becom¬

of. dollars

ances

devalued

or

which

in

similar to
to

many
a

Or

man.

with

a

phobia
the

assume

countries.

one

one may

role

could

of

the

It

is

have
rich

compare

it

sighing how happy he

man

when he earned $50 a week
and when he borrowed
$5,000 for
was

be

seize.

Nevertheless, he is striving and
flourishing with his worries even

his

estate

will

some

ories
as

the

that

news

Kalamazoo

Thunderstorm shares have opened
10% up and he ought now to de¬
cide whether to sell
In

days

our

investments

or

given

to hold

or

long-term

restore

to

ever,

tion
the

be

may

or

health and the power
and thus may be indi¬

production

credits.

leaving out these
credits,

one

investment

has

How¬

consump¬

to

suppose

of

means

to

or

not.
now

pay¬

ing only a token cash dividend to
its shareholders, and
yielding to
its

stockholders

much

Government bonds, is

un¬

sustain

to

the

work

rectly

order

exports)

at least not

Government

severe

re¬

on

kind of normalcy in a short

Redemption in

entrepreneur may

Thus the Sun Oil Co.

credits

are

But under certain conditions such
in

The

whether he issues additional

shares

on.

normally not
consumption purposes.

for

years,

any

could

case

of

tive

with

a.m.

debtor should have the

tax

public companies or as private
firms act that way in the
period

simply not pay dividends and wiil
keep all profits and certainly de¬
preciation in his business irrespec¬

at

or

as

methods.

California

inheritance

-

some

time.

7

to

had to worry over his investments
and his income tax and even the

now

grow¬

during

trip

automati¬

consumption
and
quick rehabilitation.
They will
not produce such
export surplus in
the near future, and
they should
not, if we wish the world to reach

All growing industries

his

capital, if not
misdirected, should provide not
only for replacement or deprecia¬
tion but also to yield above that
a
surplus.
In other words, the

,his first business,; while he

without

not

export surplus

"invisible"

few

strictions

ing businesses, whether conducted

if his broker disturbs him

consumption credits

ments

time to come, he can pay
only interest and amortization by

purchasing power by a general
in prices — or if he hoards
gold which the Government may

avoidable

invest¬

increasing investments

a

any

the

European

not start for
some; time to come
development.
They
make and even interest will have to be
profits, large profits, but they are paid by additional borrowings for
new
borrowings or new capital unable to pay them out, unless the first few
years.
This, anyhow,
issues or by asking his creditors
they make complementary cap¬ is nothing unusual and unheard
of,
or shareholders to leave
not only
ital additions from other sources.
since it conforms to
early periods
amortization of the loan but even
Otherwise, the "transfer" of prof¬ of development in "colonial" and
the interest and dividends in his its to
the capitalist—the domestic similar countries.
In this connec¬
business for ploughing back.
capitalist—would restrict the prof¬ tion, we may leave the ques¬
This may be effected by various itable
enlargement of the business, tion open whether or not the
for

rise

the

of

may

or. warrants

at least lose in

may

capital) and

also to pay interest or dividends.
But supposing his business needs

worrying whether he. invests

ing the great creditor nation and
foremost "holders

amortize the loan (or

rich

poor

war.;

td

period
Theodor Vogelstein

But the

pay.

on

had

World

to

dur-j

They

within

-

fof

payment

war-torn

&»

J

correct, t for

overlooks

run

cally produce

Britain WiU Be Able? to Recover and
Again Become a Creditor
Nation, and That the Best American Opportunities for Investment Will Be in Great Britain and
Western Europe.

com-i

were

partly

plight of the

•

eign

The optimistic opinion,

only
long

ample of

less
a

good

than
ex-,

big concern acting in
that way. Certainly, if there were
no
taxes, they could just as well
pay out all profits and increase
the capital by new
issues; or if
there

were

and

ers

a

profit

no

no

private sharehold¬

fear

of

undistributed

taxes,

American
II

There

are

at

present two

the¬

existing in the United States
foreign investments, both of
which, in the opinion of this
writer, do not fit present conditions.
to

The

one

turn

to

holds

that, with. the

orthodox

finance,

re¬

.

sound

monetary policy and compara¬
tively free trade, every debtor
country will automatically be able
pay interest or dividends and

to

also

the

creditor
The

capital

refund

the

other

one

or

less

lost

considers
as

any

dubious and

beforehand

if

they could stop all
dividend payments as long as the

the

business

ments by its exports to the United

can

needs

the

amount

and

profitably employ additional

capital.

debtor

country cannot prove
its ability of repaying the invest¬
States.
Both

approaches

would

allow

th,e

Certainly this does not mean
that the individual
enterprise, i.e.,
a
power station or a steel
plant,
should not be amortized; the
only

question

is whether or not this
amortization is transferred or re¬
invested in the same or some other

enterprise of the debtor country.
The pessimistic
theory is still
less

realistic,

even

if the facts it

presumes are correct not

only for
years
of transition but for
decades to come. The whole idea
that credits and investments
ought
to be repaid and
liquidated and
that interest and dividends have
the

nation.

foreign investment
more

to

tariff

debtors to send enough goods here
for interest and
liquidation.

do

not

actually

to

be

transferred

from

one

country to the other, shows
that the protagonists of this
doc-

seem

(Continued

on

|

1113)

page

I




trading

markets

Coca-Cola Bottling Co. of New York
Coca-Cola

Bottling Co. of Los Angeles

Coca-Cola

Bottling "A" of Cincinnati

Coca-Cola

Bottling Co. of Chicago

Coca-Cola

Bottling Co. of Stl Louis

Panama Coca-Cola

Bottling Company

Red Rock Bottlers, Inc.

hoit,

rose

&

trost

er
H\

ESTABLISHED 1914
Members New York

»

If

Security Dealers Association

I
B

74 Trinity Place

New York 6, N. Y.

i

•j
:

Telephone: BOwlinfi Green 9-7400
ATLANTA OFFICE:

s

Teletype: NY 1-375
First National Bank

Telephone: WAlnut 0025-6

—

hi

Building

•i.

*

Teletype; AT 468

,

_

M
M

'; it
i

V

\
•

?v'

.

V

\

"1

ij

THE COMMERCIAL & FINANCIAL

1076

Thursday, September 6,

CHRONICLE

The Post-War Pattern of American
By FREDERIC

Banking

EDWARD LEE
University of Illinois

Professor of Economics,

the
,

l-

lies ahead for American

What

in

banking

the

early

Proposed Possible Changes in Banking as (1) Resort to
100% Reserve Banking as Put Forward by Professor Irving Fisher; (2) the
"Eccles Plan" of Fluctuating and Varying Regional Reserve Requirements;
and (3) the Complete Nationalization of Banking and Credit as Contained
in the Program of the British Labor Party, Points to the Large Commer¬
cial Bank Holdings of Government Debt as a Motive for Nationaliza¬
tion of Banking and Elimination of the State Banks and Warns
That When Banking and Politics Mix "It Is Always Bad for
^
Banking." Sees More Government Control Ahead.

Dr. Lee Analyzes the

post-war

period? Will it be "100% Reserve
Banking," with the Government
doing

all

most

of

or

the

Will

lending?

bankers be
civil

servants

working for
the

Govern-

in

ment

a

government-

^

^

owned

Shall

tem

we

dual
of

a

opinion

these

ized

categorical or final answer to
questions, but the answer
to them is so important and vital
to our free enterprise banking

ing system?
our

lose
sys¬

bank¬

structure

ing, which, in
a sense, has

involved

characterized

ought

sible

American-

banking for,
155 years

since

Dr.

Frederic E. Lee

the First Bank
of

the

United

States

was

state banks then

or

our

less

superor

four

existing in 1791?

results

and

consequences

the

of

mass

the

people — the

altogether
indifference to what

rank and file—there is
too

much

happens

to

Bankers

our

banking

themselves

•

system.

have

been

timidated

apathy of the public generally

to many
be

of

of these questions needs
by the creation
educated
public opinion

eradicated

an

after the facts of the situation

are

carefully weighed.
Public Opinion on Banking
Is Inarticulate

deed, who would attempt to give

With

ent

to

post-war era?

prophet, in¬

great

is unorgan¬

banking

inarticulate.

out as many of
them have been far too much in¬

system provide for more
branch banking in the

He would be a bold

that, before the things
to pass, the pos¬

come

on

and

be faced squarely and
considered carefully. The appar¬

to

imposed upon the three
Shall

floor

of

Congress.

The
ter

real

lies

in

fact

that

sade

by the demogogic cru¬

against them in the early
They remember too well

'thirties.

"dog house."
hearings on
the Bretton Woods proposals when
organized bankers expressed
themselves through the American
their

days

Even

in

in

the

the

recent

and the New York Bankers Asso¬

difficulty in the mat¬
the

hesitant to speak

public

ciations, some of the old familiar
epithets were hurled against them.

In

a

period such as the present it
enough to say that the public
or does not want any of these

is not
does

developments in banking to take
If an educated or enlight¬
public opinion wants 100%
reserve
banking or governmentowned
and
controlled
banking,
place.

ened

then the

public

what

wants.

it

can

ultimately get

What

is

made

a

at

more

intelligent method *01

a

few years ago to
get

arriving at the nature of public
opinion on certain economic ques¬
than

tions

votes in

an

pression

of

that

Opinion"
tional

be

is that these questions

to

considered

consider

these

matters

before

fait accompli.
public election do not
adequately reflect public opinion
on
an
economic issue, and the
same might
be said for votes on
they

become

Votes in

a

interpreting
as

real

a

ex¬

public sentiment
A
Survey
of
Public
made

was

Industrial

Board.

by

the

Na¬

Conference

Twelve

thousand editors
and farm journals
series of questions

of newspapers

asked

were

of

election

"Statistical

a

regarding the public attitude, as
they interpreted it, toward cur¬
rent economic and social

in

their

sand

communities.

and

fifty

problems

Five thou¬

replies

were

re¬

ceived. One of the questions
asked

"Does public opinion in vour
favor government

was,

community
taking
replies
tion.

the banking system?"

over

In the

needed

should
dispassionately in
the light of cool reason and re¬
flection, while there is still time
now

Attempt*

were

com¬

mercial bank¬

1945

5,050 returns made, 4.756
made

were

to

this

ques¬

Of these replies, 1,691 were

favorable to the government tak¬

ing

the banks of the country
opposed, and 226 were

over

2.839

were

doubtful.
ed

These

educated

least

figures represent¬
opinion at

public

the

on

part of the editors
replying. They had probably given
much more thought to such ques¬
than

tions
their

the

Put

majority

on

a

basis, these figures

age

in

had

readers.

36%

of the
in

resented

opinion

that

mean

communities

the

favor

rep¬

public

survey,

to

seems

of

percent¬

govern¬

ment

ownership and/or control of
banking.
Only 59.7, or roughly
60%, of the communities were

opposed
5%

to

such

listed

were

action, whereas
doubtful. These

as

4,756 replies to the question
from editors with

were

combined cir¬

a

culation of 22,744,000 papers.

On
figures given, again reduced to a
percentage basis, 39%, or news¬
papers with a circulation of 8.842,000, were favorable to a govern¬
ment

control

53%,
of

of banks; roughly
those with a circulation

or

12,153,000,

about 8%

This
of

opposed, while

were

listed

were

as

doubtful.

the considered judgment
editors concerned as to

was

the

what

would

be

the

of

sentiment

their readers at that time

on

this

important question. Heated con¬
troversy and bitter partisan prop¬
aganda might easily warp or mold
public sentiment on such a ques¬
tion

one

way

What of

another.

or

100% Reserve Banking?

One Hundred Per Cent Reserve

Banking,

as defined by its advo¬
cates, may take one of two forms.

In

either

form

revolutionize

it

tend

would

to

banking
practice. Perhaps the plan that is
present

most familiar is that embodied in

Professor

Irving Fisher's "100%
Money," published in 1935. This
plan would require all banks to
hold 100% against their demand
deposits—"checkbook money," as
Fisher calls, is—in the form of
Currency
States

Commission

inconvertible

United

or

No

notes.

loans could be made

credit

ex¬

tended in any form from these

de¬

or

posits.

To get the Currency Com¬
mission or other notes the banks
would

sion

ntrance

e

turn

over

to the

Commis¬

bonds or
other assets to bring their reserves
up to 100% of their checking de¬
enough

their

of

posits. There would be no more
"derivative deposits," i.e., deposits
which arise out of the process

extending

of

loans

Capital

credit.

could be made out of savings de¬

posits, which, according to Fisher,
would have

ditional

only 3% re¬

to have

which

serves,

was

reserve

on

the

old

tra¬

time and sav¬

ings deposits in the Federal Re¬
serve

time.
their

system
The
own

at

prevailing

bankers

that

lend
capital

could

money—their

—- as
short term loans,
but presumably beyond that Gov¬

resources

ernment

lending

(Continued

V

\




on

agencies
page

would

1084)

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

-

Social

Credit

In

1077

Alberta

By JAMES E. LE ROSSIGNOL

Dean, University of Nebraska, College of Business Administration

the depression of the
the provinces of Sas¬

During

Thirties,

katchewan and Alberta suffered
more than the rest of Canada be¬
low

price

wheat,

expen¬
trans¬

sive

Alberta Is

portation,

drought, frost,
hail, insect
pests,
and
debt; so it is
not surprising
that

various

forms

of rad¬

icalism

have

the

pink

cialism
C
E.

J.

a

n

d i

a

wealth

and Alberta has
with

mented

the

a n

Fed¬

experi¬

who

ter,

for

Institute

carried

on

and

Premier

of

the

Wm.

Aberhart

radio

had

became

later, he

years

of the Scottish

convert

a

using

evangelical
the year 1926

broadcasting since
and when, several

engineer,

been

his

for

levy of 5%

crement,"
their

became

the

the election of Oct.
found him

the

to

Premiership, which

retained

he

14, 1935, they

his

until

office

death

on

May 17, 1943.

Douglas scheme, but part of the
rapid money plan of Silvio Ge-

a

point of the Douglas
that, under the present
system, there is neces¬
sarily a current deficiency in buy¬
ing power as expressed in the "A"
and
"B"
theorem,
"A"
being
wages
and "B," other costs of

doctrine is
economic

production.

But inasmuch

is

to

the

be

and

an

average

the

right

courts

were

of 4.89% to

of

denied to the creditors.

was

Mr.

Aberhart

levy

•

believed

circulate

rapidly—at least

year—and that the
yield as much as

a

would

$120,000,000

that they

for

the

payment

of

certificates

loans in actual cash at from 3J/2 to

principal!

the
a

affixing
sales tax in

and

action,

Scheme in

the

as

was

trans¬

by the banks, nor ac¬
cepted outside the province, and
the legislators declined to take
in part payment of their

them

their

salaries,
limited

and

circulation

brief.

The

therefore,
provided
for
their redemption and finally, in
April, 1937, decided to abandon
them altogether, and to redeem
those outstanding—approximately
$12,000—at their full value. Nat¬
urally, many of them have been
kept as souvenirs.
The

same

of

Action

act

Social

Credit

Measures

Act

the

province the full benefit of

chartered

As

the

summer

down.

power

to

This

also were

act also gave

the Lieutenant-Gover¬

to declare

nor

debts

New

scaled

a

moratorium, not

only as to past debts, but as to fu¬
ture debts as well. The only relief

granted to the necessitous

cred¬

itor, the forgotten man, was that
he

might apply to the Debt Ad-

(Continued

on

page

1118)

Credit

Alberta

provincial

Holsapple & Co.
MEMBERS NEW

issued about

part wages to laborers in relief
and for other government

and were expected to
rapidly as the holders
were required to
put a one cent
stamp weekly on every dollaf bill
which, in the course of two years
would provide a redemption fund
circulate

$1.04.

applied to the reduction of the

provided for the

the

MEMBERS NEW

registration un¬
der which about 350,000 persons
are said to have registered as the
first
condition of receiving the

expenses

of

might have been expected,

registration did not provide the
desired dividends, but the impa¬
tient registrants, many of whom
were debtors, were placated later
by the Provincial Securities In¬

be

to

YORK STOCK EXCHANGE

The act also provided for a sys¬

$262,000
in
"prosperity certif¬
icates," otherwise known as "scrip
money"
or,
"rapidity
dollars."
These certificates were paid out
as

banks.

tem of voluntary

Under this act the Government

during

and

only

certificates.

de¬

signed "to bring about the equa¬
tion of consumption to production
and thus to ensure to the people

a

said

is

by its
friends to have brought about a
reduction in the taxes charged by

bank under
The scheme pf Mr.
Aberhart the
Treasury Department with
was not strictly followed after the
power to establish branches, re¬
election, but in April, 1936, the ceive deposits, and make loans
provincial legislature passed the without interest in non-negotiable
House,

largely

interest

5%

was

Govern¬

ment,

creation

The

stamp
every

welcomed

dividends.

basic

applied

not receivable for taxes, nor

As

as

deals

farmers
and
resident
home owners, in case of debts in¬
curred before July 1,
1932, in¬
terest was wiped out from that
date and later payments were to

really
were

and

to

access

cut
%
the

with the co¬
operative associations, as well as
with individuals, has deposits of
about $20,000,000 and does some¬
thing more than 10% of the total
business of the province. It makes

sell.

work

The main

assumed

a

As the buy¬
ing
power
of
the
certificates
would expire at the end of the
year
following receipt of them,

ac¬

and raised him

seat

a

by

selling prices.

their association."

Aberhart

backed

tween the cost of commodities and

of the

knowledged leader of the Social
Credit Party and when they won

be

to

were

the "unearned in¬
the price spread be¬

gospel of social

credit. Presently

to

neces¬

on

C. H. Douglas,
he began to teach his
large fol¬
lowing and many others the new
Mr.

Major

and

House

twelve times

years

minors,
bare

"non-negotiable certif¬
issued
by
a
Provincial

Aber-

province.
the

in

of William

and

Dean

as

dividends

These

paid

would

political activities
of The Prophetic Bible

religious

the

under

hart, B. A., sometime schoolmas¬

to

the

as part of the "cul¬
heritage" and to make up
shortage of buying power.

Credit

Social

leadership

so¬

of the

Common-

LeRossignol

eration,

n

to

securities

guaranteed
from

government

and

bonds

vincial

the Road Toward Financial Rehabilitation.

tural

Credit

turned

them

sities of life

flourished

has

payments
for

secure

there.

katchewa

former law interest rates on pro¬

By the latter act, which
smaller

icates"

Sas-

on

of

By the

Act of September.

Debts

He Shows Why the System Failed and Recounts the Constitu¬
tional Difficulties Which Finally Resulted in Its Collapse. Says Social Credit
Party Still Survives, and That With a New Debt Refunding Program,

of

Settlement

and

Reduction

Douglas.

the

of

cause

1936, and the

terest Act of June,

Professor Le Rossignol Tells the Story of the Social Credit Party in Alberta, Can.,
and the Legislative Efforts to Put Into Practice the Theories of Major C. H.

This, to be sure, was not

YORK CURB

EXCHANGE

(ASSOCIATE)

long awaited basic dividends and
a preliminary step toward the
price-fixing system. In thus reg¬
istering, for example, a farmer
agreed to sell part of his crop for
credit
certificates, when
called

as

30 PINE

Similarly, employ¬
take part of their
wages
in certificates and mer¬
chants agreed to accept the cer¬
tificates and deposit them with
the

TELEPHONE—DIGBY

to do so.

upon

ees

STREET, NEW YORK 5, N. Y.
4-4960

agreed to

Credit

The

TELETYPE—N.

Y.

T-22t

N.

Y.

1-2224

House.

Credit House

did

not long

operate according to plan, but it
still exists, with some 34 branches

"A"

as

whole

of

buying power, it can never be
large enough to buy goods which
cost "A"
new

plus "B," and, therefore,
power must be intro¬

buying

duced

to

make

the shortage.

up

The theory surely is unsound, as

rent, interest and profits
of

the

and,

national

such,

part
income

are

money

Canadian Securities

buying power,
Then, too, Major
Douglas, in advising the continual
issue of new buying power, has
as

even

as

himself

set

are

wages.

insoluble problem:

an

to find artifical

buying

not

from

borrowing and will

from

come

that

power

does

taxation

or

not lead

Government

to inflation.
!

In

justice

to

who has been
tile

in

Douglas,

Provincial

Alberta,

it
report
the Government in
June, 1935,

should be
to

Major

blamed for the fu¬

experiments
said

that

in his

Municipal

he expressed doubts

as to the suc¬
of Social Credit in the prov¬

cess

ince

because

of

constitutional

limitations, the rock
later

was

wrecked.

noted also that

regulate
sues

of

wanted

the

the

be

downward - and
producers by is¬

irredeemable

whereas

should

Douglas wished to

prices

compensate

Public Utility

which it

on

It

farmers

currency,

of

Alberta

higher prices.

Wood, Gundy &

In Mr. Aberhart's "Social Credit

Manual,"

published
before
the
election of 1935, he gave an ex¬
position of his own scheme, of
which

the

chief

features

Incorporated

were

basic

dividends, non-negotiable
certificates, the unearned incre¬
ment

14 Wall

Street,

*

4

>

The promise of; basic dividends

which,

together

with

bitter

de¬

nunciation of the banks and other

money lenders, won the election,
was for

to

monthly payments of $25
bona fide citizen and

every


http://fraser.stlouisfed.org/
t
Federal Reserve Bank of St. Louis
'

New York 5

levy, and price control.
Toronto

Montreal

Winnipeg

Vancouver

London, England

1\».

THE COMMERCIAL & FINANCIAL

1078

Thursday, September 6, 1945

CHRONICLE

.(

i

I

Savings

Future of Postal

The

By LOUIS HOUGH

.

Associate

Professor

of

Economics, Miami

University, Ohio
only

Special Advantages of Postal

of Postal Savings Banks as a Means
of Encourging Thrift and Securing the Safety oft Small Savings, and Estimates
That It Is More Profitable to Holder if Postal Savings Certificates Are Held
Less Than Six Years Than if Same Funds Are Invested in E Bonds. He also

Professor Hough Recounts the Advantages

Savings

] Why does anyone have
in

account

This is

a

savings

commercial

a

bank?'

real

a

question

and

deserves

careful

Postal

swer.

savings
pays
2% simple in¬
terest,

war

bonds

pay

2.9%

com¬

terest,
few

Receptive to Abandonment of Postal

in¬

pound

and

a

longer hours per day.

savings banks
or
building
and loan
4'.i
'Iri'

5i'

still

are

has been completely

trying to

pay

2%

3%.

Histor¬

ically

a

or
>'

Louis

S.

Hough

those

-

y

:

days

are

not likely to
The

return in the visible future.

it j.

."in;'

banks

must

be

ex¬

Comparison of Postal Savings

bonds

equally
made

chief

difference

| In addition to the 2% yield on
I savings the depositor has
safety,

and

immediate

is. enforced.-

A

number

of

and have

liquid.

equally

in

is

now

the

The
yield.

war

bonds

The

interest

runs

somewhat lower than 2% for

the

paid

on

first

six years.
These bonds
2.9% only if they are held to
maturity. Figure I shows the re¬
lationship between the amount
pay

other special services are offered.

accumulated
years

in

savings

postal

secure,

The post

office is open more days
the year than banks and other

Bonds

E

and

been

liquidity for small amounts.
For
large withdrawals, overnight no¬

IS

Series

and

War

of their customers.

postal

lower

and

the

number

of

the investment is held. The.
postal savings system, does not

a

war

It becomes clear that it is more

profitable

to

postal

buy

savings

be held
less
than
six
years,
but more
profitable to buy defense bonds if
they are to be held longer. When
the postal savings account is com¬
pounded annually (as is permit¬
ted) it grows slightly faster, but
this adds only 36 cents over the
ten years. Either form of invest¬
ment helps the war effort as much
as the other, and each is unques¬
tionably safe.
a

Com¬

mercial Bank
In the first

bank
its

can

depositors.

ence

and

place,

a

commercial

If letters of refer¬

occasional

small

loans

important, there is consider¬
able
advantage
in keeping the
savings account in a bank.
The
post office does not supply credit
references for its depositors and
will not lend them money.
The
are

h;

iS

H*.

i

v"%

■*'¥
.u:

bank is much

Underwriters and Distributors

&■

funds

more

available

likely to make

when

disaster

strikes.
One major disadvantage of the
postal savings system is the diffi¬

'Jfc
W'

culty encountered in getting the
money
out when the depositor
suddenly dies,
or
becomes in¬
capacitated. These funds may be

30

60

or

days,

could

be

removed

time., Few depositors
they exist. \
>

any

the limit of $2,500 is
the post office can offer'

;; When

depositor government bonds.
This is a fine thing during the
dangerously inflationary

riod,
the

war

vices of the banks may again be¬

come
highly valued. Banks also
savings account, and handle government bonds, and
to
suggest somewhat
joint accounts are not permitted. are able
Societies, partnerships, corpora¬ more remunerative securities in
tions,
associations,
and
other addition. Higher yields are likely
groups may
not open recounts, to be attractive to individuals
nor
children younger than ten wealthy enough to save amounts
years of age.
No trust accounts running over $2,500.
Privately owned banks try to
may be set up up to take care of
courteous,
considerate,
and
young or incapacitated benefic¬ be
iaries.
flexible, since they value custo¬
Families sometimes keep their mers' good will. Post office em¬
postal savings in two or more ac¬ ployees typically meet the special

postal

counts.

There may be one for the

father,

one

one

each

terest

the mother,

for

the

for

children

There is

no

and

needs

and
older

loss of in¬

such

involved, and such an ar¬

employees personally liable
deviations from standard¬

for any

it possible for

the household to save more than

ized

the

administrative

portant,
can

ents

im¬
funds

more

in

some

case

of the

either

of

is

there

convenience

a

or

incapacity
both

involved

in

bank some

a

would

they must go to the
case to cash their
Postal
savings requires

parents.

ment because

of in¬
sending

bank

in

any

checks.

to the post office

customers

to

carry

dangerously

large amounts of currency to and
from
the windows.
Within the

accounts. Privately owned
banking facilities present no such

problem.
Most private banks compound
the interest automatically, while
in the case of postal savings it is

safety

the commercial bank
customer can shift
from savings to checking
of

the

building
funds

vaults;

deoosit

Safe

accounts.

to make a trip to the

traveler's checks, cashier's checks,
bank
money
orders, and other

post
office
during
the
right
month, withdraw the interest and
redeposit it.
This is permitted

services

are

readily available. For

(Continued

on

page

1099)

Municipal Bonds

4

BONDS

STOCKS

GOVERNMENT

PUBLIC

and other investment securities

UTILITY

PROVINCIAL

AND

MUNICIPAL

INDUSTRIAL

Canadian Government
Provincial and

Municipal Bonds.

Markets maintained in all

classes of Canadian external

and internal bond issues.

Slock orders executed

Exchanges,
i

•

.

or

on

the Montreal and Toronto Slock

net New York markets quoted on request.

>

DIRECT

PRIVATE

WIRES

.

CONNECT

OCR

MONTREAL

Harriman

Ripley & Co.

NEW

YORE,

BUFFALO,

TORONTO

AND

OFFICES

BELL SYSTEM TELETYPE

NY 1-702-3

Incorporated

63 Wall
BOSTON

•

Street, New York 5, N. Y.
PHILADELPHIA

•

Representatives in other Cities




CHICAGO

Dominion Securities ©rporation
Buffalo

40

EXCHANGE PLACE, NEW YORE

Philadelphia
London, Eng.
Ottawa

Telephone WHitehall 4-8161

be

depositors will prefer the
bank savings depart¬

Some

to open

necessary

In

offtcial

commercial

or

great deal

all these persons

procedures.

available for consultation.

emergency
be withdrawn by the depend¬

death
But

Still

limit.

$2,500

of depositors

requests

adhering impersonally to the
letter of the Federal regulations.
Enactments and precedents make
by

United States Government

Utility, Railroad, Industrial

pe¬

in the post-war world
investment councilling ser¬
but

*1

Public

at

know

,

Dealers in

State and

but.

the

rangement makes

offer credit standing to

for

reached

than ten.

Advantages of Saving in

availability of commercial
savings may be legally de¬

withdrawal

Savings.

one

bond.

twelve¬

effect, commercial bank liquidity
is immediate, and the legal reg¬
ulations
concerning
notice
of

bearing certificates greatly needed to help meet the

$25,00

each

few banks find it necessary to ask
for any advance notice at all. In

any

certificates if they are to

are

tice

bank

ferrable

amount less than one emergency which has arisen, but
dollar, but for purposes of com¬ their availability is delayed until
parison it seems most appropriate the full term of the legal admin¬
to calculate 2% interest on $18.75, istration of the estate.
No one may have more than
since this is the original invest¬
for

income
brackets, and for children.
the

for

plained by their extra services,
their convenience, and the habits

maximum

filled it may

issue interest

ment in

continued attraction of savings to

commercial

sav¬

exchanged
for
an
interest
bearing certificate. This arrange¬
ment is convenient for impulsive
savers,

bank

could offer better rates of interest,
but

open

be

com¬

mercial

It is
Postal

ings stamps, which carry no in¬
terest, are sold
for ten cents.
When a card of ten such stamps

asso¬

ciations

institutions.

savings

insured

The

t

Compares Postal Savings With Commercial Banks, Thrift Accounts, and
Though Admitting Latter Has Many Advantages to the Depositor,
Holds That the Postal Savings System Should Still Entice Many of
the Public.
Notes Sporadic Growth of Postal Savings and Con¬
cludes That at This Time the Political Atmosphere Might Be

a

an¬

during

once

month period.

Toronto

5

Montreal

Winnipeg
Vancouver

:1

Volume

Number 4418

162

THE COMMERCIAL & FINANCIAL
CHRONICLE

1079

The First Tear After World War I
A

Retrospect Of The Year 1919 As A Guide To Post-War Planning
By Investors, Industry, Banking, Finance, Government and Labor
I Since V-J Day there has been such a
widespread demand for
copies of the ' Chronicle" in which this
review

originally

day named, only
the

ap¬

After

World

Armistice

on

necessity

of

cessation

of

War

I

Nov.

11,

was

formally ended with the

1918,

absorbing

our

economy

was

the

signing of the
confronted with the

2,000,000 men in the armed forces in
France and the 2,000,000 additional
ones in
training camps in this
country—We had to contend with
lay offs brought about by the
the

manufacture

of

munitions and other
special work
incidental to the prosecution of the
war—Then, too, while the war
was in progress our domestic
economy was subjected to
,

widespread
result of the Controls and restraints imposed on
industry by the. Administration—The
nation is now
undergoing even more radical changes in its
fundamental structure

dislocations

business
than

as a

and

the

in World War I—For
this and other
reasons, we
believe it very timely and pertinent to
present now a review of the
situation which prevailed on the "home
front" during the year
1919,
the first year after the previous
conflict. The record for that
period
as it appeared in the
"Chronicle's" Financial Review is
reprinted
herewith:
was

The

case

1919

in

document

few hours after

a

had

activity and

been

sive nature of the arrangement.
Hence 1919 —

notwithstanding

the
in

negotiations

and

some

noteworthy de¬

clines in commodity values.
Labor,
which had been scarce up to the
time of the armistice the previous

signed,
took occasion to
say, "The war
thus "comes to an end,"
thereby
indicating the absolutely conclu¬

peared that it is being reproduced in
full in this issue.—Editor]

proceedings

Europe and in the United States

—constituted

the first year. after
the world war. It is for that rea¬
son the course of the
year
nomic affairs.
be

It

was

itancy

at

the

which' the

again
that

beginning,

forward
It

resumed.
the

was

of

the

readjustment—of

at

the

was

many

whole

belied

all its

early in¬
dications—the
trade and
nomic

eco¬

indica¬

tions

which

were

so

con¬

spicuously

in

evidence
when the year

opened.
n

The

tiations

ego

between

the

Allied
A

s s o c

and

i

a

Powers
the
'

.

Pres.

wnsoji's

many. The definite failure to ob¬
tain ratification after;
lengthy de¬
bate
and
many
formal
and
informal

negotiations, in commit¬
committee, and on

tee and out of

the part of members of both
par¬
ties acting on their own initiative
to prevent such a

result, occurred
November 19, and on the same
day the special session convened
by the President six months be¬
fore adjourned.
on

Accordingly the

for

the

military

forces

terms of peace
the Cen¬

Sec'y

upon

7

that

the

framed

peace

and

the

by the
embodying

which

the

Powers

Treaty, as
conferees

until, June

not

Elbert

closed

or¬

ganization of

a League of Nations,
practically perpetual and

unlimited

powers over its mem¬
the scope laid down.
The objections
urged against this

bers within

League
would

of Nations were that it
involve virtual abandon¬

ment

by the United States of the
Monroe Doctrine, that it would
deprive the
country
of sover¬

eignty
cal

its

over

occasions

insuring
United

affairs

own

and

perpetual

States,

this

it
in

on

criti¬

that, instead of
the

to

peace

would

embroil

country
all
European
troubles and would thus be a fla¬
grant disregard of the
warning
against "entangling alliances" ut¬
tered by
Washington. The opposi¬
tion
found
expression
in
the

United States
Senate, and was
vigorous and pronounced and

so

deep-rooted

of

that

ratification

so

the treaty
by the Senate became
out of the
question,

except by the

attachment

of numerous "reserva¬

tions"

and
"interpretations," and
these the Administration Senators

(acting

at

the

instance

of

Presi¬

dent

Wilson) would not accept,
they taking the ground that these
modifications
alter

League

the

would

so

materially

constitution

of

the

of Nations that the Peace




in this country meant the release
of

2,000,000

had

would

more—

ensure

plentiful supply of labor, while

a

the

cessation

of

the

manufacture

>

V

,

(.

-I

;
■
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v.

.ft'

,vft.
%

v

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ft.*'.. \

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v';''-'-

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;

ft;: j'ftft; ft; :•

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'

tlttWiillilllfiiiil

nor¬

accen¬

great

advance

lower; instead they
higher.
It was be¬
the

cost

of
living
instead, it
further upward.* Nothing
be

leaped
seemed

reduced;

certain

more

than

wages would have to come

that

down,

antecedent

advances proved
circumstance to the new

a

advances

that

1919.

place

In

to

were

of

labor, there

in

come

the

previous

was now to

an

and

scarce
own

war

was

was

terms.

the
re¬

able

credit expansion of
to be followed by

different
fulfill

out

far

to

was

inflation; actually the

to

to

The great

ex¬

in

so

a

the year
expectation and
way

differently

without

what most people had counted
it opened.

the

United

surprise

a

in

mercantile

and financial affairs did not grow
out of any developments in con¬

on

nection with the Peace

because

the

of

the

States
there

Senate

Treaty,

attitude

Senate

was

(and

reason

reflected

to

the

or

the

of

in

think

bulk

of

popular sentiment) with regard to
the

same.

Outside

the

United

States the Peace Treaty was never
in jeopardy and if received the

The explanation for the differ¬
ence between
expectation and re¬
sult

is found in the circumstance
that the war, besides the havoc
and

destruction it wrought, exer¬
cised a profoundly

disturbing ef¬

fect

in

itself

other

respects.

The

on

November

11

of the

previous year.
Were there the
slightest doubt on that point, the
authority
of
President
Wilson
himself might be invoked in sup¬
port
of
the
statement, for the

smile

and

beaming

attendance

doggedly

at

the

into

the

Peace
work

Conference
of

gained

in

and

momentum.

mind,

of

steadily

been in

training to be sent

over¬

With the release from mili¬

seas.

come

in.

It is true the

If

transitory nature. When
opened, some of the post¬

characteristics

war

fairs

which

looked for in industrial

been

were

in evidence and it

supposed these

had
af¬
was

steel

naces

trades

banking of fur¬

became prominent and with

stocks of the metal

himself

write

a

There

slackening of

munitions

incident

the

war

and

to

other

the

special

prosecution

would turn

loose still

more

labor and

gress

toward the restoration

normal

course

thus make prog-

of affairs not

natural

but

In

early period

this

easy

consideration

probabilities

of

and

a

inevitable.

of

the

Of

only

the

year

immediate

freighted maimly with discussions as to the best
were

means

cotton goods were announced and

for

raw

demand

cotton

were

so

also suffered

a

sharp

reduction.

Thus early

dications

in the year the in¬
pointed
strongly
to¬

wards trade reaction.

The

causes

tory, as already noted, though this

ybar.

of

the leading cities and towns the
municipal authorities and publicspirited citizens interested them¬

the

in the whole

resentatives and the Senate

of

work

so large
inconsequen¬
tial this was found impossible and
prices rapidly drifted away from
control of the producing interests.
Sharp reductions in the prices of

and

'come

of industries throughout the
a

to

to employ for
procuring
booking of new orders re¬ work for the large numbers of
ported less than half of current men so suddenly released from
production the steel mills were military
duty
and
from
war
engaged to only about an average manufacturing. The problem as it
of 60% to 65% of their capacity. presented itself then was
how to
Copper
production
had
to
be find jobs for the many applicants
sharply curtailed, and though the for the same. Great anxiety was
large
producers
of
the
metal manifested as to whether suffi¬
sought
to
maintain
the
price cient work could be found for all
agreed upon the previous month, the returning soldiers; and in all

however,

was

thrown

Conference

the

premonitory

range

to

and

were

joint session of the House of Rep¬

was

had

Peace

trip to

During his first

.

...

nothing

a mere

the year

.

.

League of Nations Covenant into the Peace
Treaty itself.
At home
were lining up to prevent our
entry into the League.

this is idleness was by no means uni¬
strange form, being pronounced mainly at
will be found in the annuals and centres where special war work
the experience of the year. Never¬ had been
done, and often little
theless, the striking contrast be¬ noticeable elsewhere. In the iron
in

borne

President

others

began to

motibn

confidence,

Wilson

persuading the

tinued

in

with

Europe following the Armistice of Nov. 11, 1918.

tary duty of such large masses of
men
reports of growing idleness

of what

the

broad

a

war

President^ when announcing the
terms of the armistice, before a
on

With

Wilson is pictured as he left for Brest,
France, to attend the
Conference in Versailles in April, 1919.
It was his second

thing of the past. The
agencies and influences growing
out of it, or which were called
into being to deal with
it, con¬
was a

assent
of
enough of the other tween the conditions and
pros¬
leading Powers to make it effec¬ pects at the
beginning and those
tive, though lacking the formal which marked the later course of
support of the United States. Ger¬ affairs cannot be
ignored, for it
many had been rendered helpless
constitute^ one of the significant
by the terms of the armistice and features of the year's
history. It
hence was forced to yield, assent
serves, moreover, to explain why
to any terms of peace that its vic¬ sentiment and
opinion with refer¬
torious enemies might see fit to ence to the
probabilities of the
impose, no matter how harsh or twelve months, based on the
apsevere—and, as a matter of fact, ! parent outlook at the
opening of
the
peace
terms
actually
laid 1919, went so far astray. A cur¬
down were both harsh and severe
sory review of the situation re¬
—and a renewal of the war being vealed
in
the
opening
month,
thus out of the question the rest
January, will serve to indicate
was of little consequence.
Forrrfal how largely public sentiment was
conclusion of peace might be and affected at that
time by causes
was
delayed. But the war itself and circumstances which subse¬
closed
with the signing of the
quent events showed to have been

armistice

Wilson Leaving For Peace Conference

from

when

Gary

having

proved

United

with

H.

become a definte
party to the Peace Treaty.

which

the

2,-

the

r

included

Covenant for

that

would

turned

imposed, but because the Treaty
a

still

lieved

failed

But the fact that the year 1919

The opposition arose, not because
of objections to the terms of
peace

soared

hundred

States

war.

tend

contraction, and deflation

fication

Not only that, but from the very
first there was strong opposition
to the Treaty in the United States.

further

act reverse occurred. And

year

mally terminated the

previous

succeed

ally signed at Versailles, and not
until January 10 of the new year
(1920) that the certificates of rati¬
exchanged putting
into effect which for¬

their
would

the

28

were

of

was supposed that
prices
goods and manufactures after

currency and

that the Treaty of Peace was actu¬

the treaty

of

dictate its

willing to conclude

Versailles,

return

from France and the

men

tuated. It

mained

peace with Germany, was handed
to the
German plenipotentiaries
at

of the Ameri¬

a

history.

months, ^experience proved
precise* contrary, ' and labor

terms upon
and Associated

Allied

were

meant

army

over-supply (so the argu¬
ment ran) but, except in the
early

negotiations not always run¬
ning smooth or placid. It was not

May

customary duties—

mal, the abnormal became further

be

the

until

ap¬

discharge of those who had been
in training at the
military camps

;ft.'ft■«.': ftftftftftft;--v

S

...

return

human

read¬
It

normal.

■

of

one

return to the

a

pronounced* and

dearth of

tral
Powers,
and
more
par¬
ticularly
Germany,
were
very
protracted, being prolonged far
beyond expectations, the course of

in

war

gradual

a

was

by

greatest

But far from

hardly

imposing

which

their

000,000

in the United States of

human endeaver in every
part of
the
world, engendered

but

purpose

of

Joseph P. Tumulty

ted

the Allied and Associated
Powers
for approval of the
changes made
and be resubmitted also to Ger¬

con¬

continued demobilization

camps

to

men

activities and in

war

to
the
respects, and perhaps it would be
normal after the abnormal
entirely accurate to say in all respects, a distinct
state,
surprise. Certain of
things, in every branch of trade
it is that the
and industry and in
every line of
year
as
a
Treaty would have to go back to
year

the

peared plausible enough to argue
that the return of so
many young

making of

supposed

be

of

to

time

after

march

would

year

and

the

at

must prove one of

can

and

period of reaction in busi¬
ness; instead there was only hes¬

reaction

justment

theory

discontinuance
nected with

expected to

year

the demobilization

munitions and of other work

a

the

that the

November, now appeared to be
becoming plentiful, and it seemed
likely that this situation would
continue, in part because of the

proved part because of the return home
surprise in industrial and eco-. of American soldiers from France

a

support

was

time.

proved

recognized
Close

merely
by

few

transi¬

at

the

reasoning seemed to

selves in

establishing agencies and
headquarters for the purpose of
bringing together those looking
work

and

those

having it to

offer.
Even thus early there -Was a
manifestation of the spirit on the
part of labor that was to have a

controlling influence on affairs
to change wholly the course

and

and character of the year,

it

a

making

prolongation of the war's de(Continued

on

page

1101)

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1080

3.

Rail

Revenues

Decline

to

By GALE B. CRUTCHFIELD
Vice-President, B. W. Pizzini & Co., Inc.
Let

look to the level of gross

us

clue

as

revenue

the railroads

0.-

during the period of
ad¬

post-war

justments.

rr:

A
fal¬

common

lacy is to keep
the

eyes

the

fl:

net

ating
It

oper¬

been

produced

time

proven

and

on

income.

has

nues

again that
of

railway

I

ments

are

to

trying
down

up

in

it

against

Gale B. Crutchfield

cut

in order to keep

expenses

costs in line with revenue intake.

!
I
ffi!

1

P,

Rigid costs are pretty high right
Moreover, the managements
would like to spend a lot of money

how.

on

deferred

ii
J if

■h*.

iY!.

lit
Ite

I

and

in

It depends in great ex¬

tent upon

the level of gross oper-,
ating revenue—not on net income.
During
the
war
period
the
railroads, as well as many industrail concerns, were denied mate¬

rials necessary to provide main¬
tenance of

the

level

properties in line with
of

business.

the tax rates

more,
a

I

maintenance

buying new equipment. Whether
they will feel inclined to do this
right away is a matter for con¬
jecture.

Further¬

were

such that

considerable part of the inflated

earning

power was captured by
war-time
levies.
In
other

the

words, capital has been devouring
itself

during

years.

the

Sooner

or

past

several

later it will at¬

tempt to regain the lost fat if tax
and, in the case of the rail¬
roads, the governmental policies
rates

allow

this to

be

Statistical

1944,

132

TIME.

ALL

FOR

A

WAS

This

dence

that the

indicate

to

seems

level of gross operating revenue is
in for a considerable decline.
In

Comparison

Class

I

railroads

income passed down into equities.
These
tactors
look
good when
examined

the basis of several

on

of constant growth in gross
operating revenues—but they cer¬
tainly will not look good during
a period when the gross operating
revenue is dropping!
years

It

is

ating

1944

in

oper¬

for the 132 Class I
to $6,282,000,accruals to $1,846,-

expenses

carriers
000

that

noted

amounted

and

200,000

tax

fact, during the near-term future

leaving a net railway
operating income of $1,106,300,000.
This amount of "earnings avail¬

it is hard to visualize any amount

able

of consumers' goods

about

freight move¬
ment that would replace as much
as 50% of prospective loss of war¬
time heavy-goods traffic.
Therefore, it would seem that
railroad managements will shortly
be faced with the task of cutting
down operating expenses to bal¬
prospective sharp drop in
the railway's gross operating rev¬
ance

a

level.

enue

despite

It

operating
from

creased

observed

that

in gross
1942

operating

expense

ratio

between

revenues

the

is

increase of about two

an

billion dollars

66.6% in 1944.

61.6%

and

in

1944

in¬

1942

to

The expense ratio

went up—not down—with the in¬
crease

of

in revenue!

course,

was

A part of this,

attributable

higher wage rates.

In

to

addition,

the tax collector has been taking

nearly 20%
intake

of the gross

during

the

revenue

past

several

Up

to this time we have not
mentioned the items that have
to
be
all-important to
railroad analysts—the level

—

for

capital"
$200,000,000

in fact,
than in

was,

less

1929 when the level of gross rev¬
enue

of

smaller

was

the

to

extent

$3,157,300,000.

net

railway

operating

income

after taxes and the amount of net

four

tributable to

of

dreds

goods production and to di¬

war

version
and

traffic from highways

of

for

which

Now

the

routes,

boat

coastal

you
war

well aware.
goods production

will stop; and the diverted

traffic
is apt to gradually leave the rails.
A logical guess is that traffic will
drop back to the 1937 level—let
us

that

assume

cushion

against

We will add to the 1944

revenue.

net

degree of
decline in gross

operating income of $1,106,-

300,000

about
income"

"other

$170,000,000
which

will

give
available
for

$1,276,300,000

us

of

charges. These fixed charges that
you hear so much about the rail¬
roads

being burdened with, they
to a mere $5-36,000,000, or

add up
not

two

granted
such

times

in

the

increases

increase
mention

wage

1943, not

to

granted

in

1941.

Deducting the fixed charges, the
carriers

were

left with

a

net in¬

of

$667,600,000 in 1944—less
of gross. A good part
this net figure was used to, buy

come

than

62/2%

in bonds
to

and

reduce charges

and

fortify working capital.

Expected
After
let

us

Gross

this

Revenue

statistical

proceed with

a

Drop

mouthful,

few guesses

though

$5,000,000,000,

to

drops

revenue

gross

this could be increased by freight
rate

If it

boosts.

enough,

ings in
ments

drop in
virtually wipe

$4,436,800,000

a

margin of earn¬

The manage¬

many cases.

would

be

not

able

what

happened

That
and

1930

in

cut

to

costs fast enough.

expense

is

suddenly

came

out the railroad's

certain

a

reasons

are

this

affords

into

dollars

of

no notion of picking on
W.; but it is in excellent

current

condition.

through

come

and

1944

in

It

has

just

reorganization

a

fixed

its

earned

charges 6.44 times.
Gross oper¬
ating revenue in 1944 attained a
level of $166,966,000 and the road
had $24,345,000 available for fixed
charges.
A 40% drop in traffic
would lop off about $69,000,000 in
revenue.
A guess would be that
the management could hardly pro¬
tect half of the earnings level.
This might wipe out equity in
earnings for stocks for

a

time.
have

we

a

is

we

have painted it. There

much better side in the longer
term
outlook
for
railroads and
a

railroad

side

to

securities.
the

The

picture

better

should

arise

after adjustment of current oper¬

ating

extended
traffic
nues.

taxes

and
"normal"

expenses

and

gross

to

outlook

operating

an

for

reve¬

The DROP PERIOD is what

hurts because it is

difficult job

a

a

prac¬

tical monopoly on traffic.
A reg¬
ulated rate structure was set

up

based

could

days

what each type of traffic

on

reasonably bear.

shipper

a

need

over-all

In those

assumed

was

railroad

manufactured

could

freight rate of

bear

a

to

service.

High-priced

goods
more

than 2 cents per ton per mile be¬

the

freight charges repre¬
only a minute addition to
the selling price of the articles.
On the other hand, coal and
heavy
cause

sented

goods

to

plants

_

fraction of

a

ton-mile.

per

the

run

brought in at

were

cent

a

Thus the rate struc¬

ture was adjusted to the
railway
operating cost basis. Higher wage

costs
in

meant

profit.

allow

by

reasonable

a

That is why

railroads
tent

higher freight rates

to

order

found the

we

capitalized in large
bond

ex¬

issues.

In late years we found the auto¬
motive

vehicles

running
well

We have

buggy"

days the railroads did have

rate structure

ter than

as

the
the

the traf¬

as

The railroads

on

into

re¬

were

quired to maintain over-all freight
service.

that

We

not

are

the situation

vision;

not

too

hopeful

faces early re¬

while

the

war-time

earnings of the railroads
referred

idea

to

now

as

an

The

for

more

call

to

seems

be

can

example.

super-highways to facilitate truck¬
ing by avoiding the cities and for

super-airports—largely paid for at
public

Sooner

expense.

there will be

or

revision and

a

later
a

na¬

tional

transportation policy. Ob¬
viously the public as a whole is

paying

for

transporta¬

high-cost

tion—and the railroads represent
the lowest cost transportation.
If the nation's transportation as
whole

a

put

was

cost-rate

on

a

straight

regardless of
commodity classification the sit¬
ton

per

uation would quickly become ap¬

parent.
not

Then

demand

tion

service

give them

shipper could
transporta¬
railroads,

the

over-all
from

his

the

coal

and

crushed

rock

traffic, and

and

airways for hauling his silk

use

the highways

goods, manufactured articles, and
the private car for

The railroads
the

for managements to keep costs
go¬

Secretary of the Treasury-1861-1864

Transportation

Back in the "horse and

fic level.

very harsh picture.
In
fact, it could work out much bet¬

CHASE

monopoly.

Why not take Chicago & North
Western Railway as an individual

painted

P.

Still Basic

the idea

on

are a

cutting

We admit that thus far

SALMON

a

super-highways

C. & N.

other

are
usually
problems of jockeying
rigid cost structure and

1931.

example to illustrate the picture?

rules*

and

rate structure based

Rails

happen

to

easy

union

estate

that the railroads

was

billions

real

to

Managements

between
a

largely at¬
the pumping of hun¬

years

to

taxes.

not too

are

owing

faced with

big gross revenue during the

the
last

with

partly

reasonable to assume that

seems

level

expense

deal

starts to fall.

when gross revenue

It

to

likely

is

gross revenue could

seemed

of

what

to

as

Naturally, the
income taxes in 1944 were $1,449,500,000 higher than in 1929, and

of

years.

many

In

THIS

done.

Anyway,
for a time the prospects for liberal
net earnings do not look too in¬
spiring.
A

aggregate amount of

1937, generally considered to be a
fairly good business year.
Gross
operating revenues amounted to
$6,279,500,000 in the "bull mar¬
ket" year of 1929.
Thus, the evi¬

begins to

drop

reve¬

compared with gross oper¬
ating-revenues of $4,166,000,000 in

manageV:.'

operating

amount

'itr
•

the

in

PEAK

gross

operating rev¬
enue

gross

$9,436,800,000.

the

when

level

ing downward in line with declin¬
ing revenues.
Rigidities in the

Decline in Gross Earnings Which Be¬
Immediately Offset by Lower Operat¬
ing Costs, Points Out That Although in 1944, Gross Earnings Were at an
All-Time Peak, the Excess Was Largely Absorbed by Higher Operating
Costs and Taxes, So That Net Earnings Were Less Than in 1929. Says
Reduced Earnings Will Not Cause Widespread Bankruptcies, But
Rail Equity Securities Will Be Affected Adversely.
Warns Against
"Dumping" Good Railroad Securities.

Railroad Analyst Looks For Substantial
cause of Expense Rigidities, Cannot Be

for the first
to what might happen to

operating

v

basic

form

(Continued

are

of
on

personal trips.
apt to remain
transportation
page 1141)

Industrial, Utility and Municipal Financing

State and

Securities

Municipal Bonds

Bought and Sold

on

Commission

i

Dealers in
i

Industrial, Utility, Railroad Bonds

ana

Stocks

Foreign Dollar Securities

THE

CHASE
OF THE

NATIONAL

CITY

OF

NEW

KIDDER, PEABODYSfCO.

BANK

FOUNDED

EMembers

YORK

and
BOND

DEPARTMENT

New York

Pine Street Corner cf Nassau

albany

Tel. HAnovcr 2-6000




Bell

System Teletype NY

1-1010

new

JA(jzv York Qurb Exchange

Boston
providence

bedford

1865

!N^ezv York and Boston Stock Exchanges

—

Chicago

Philadelphia
newport

springfield

New York

baltimore

v lowell

Teletype NY 1-193

scranton
■

reading

Volume 162

Number 4418

-

THE COMMERCIAL & FINANCIAL

CHRONICLE

^

1081

and Peacetime Futaue of the Coal

Industry

By JOHN WALTERS
Bituminous coal, source of half

Writer Points Out That
Despite Its Fundamental Importance, the Coal Industry
Had Been Losing Ground Just Prior to War and That
the Profits From Coal
Production Were Declining Notwithstanding Technical
Improvements and
Expanding Use of By-Products. Holds Coal Mining Will Continue as a
Vital and Huge Industry, Though Confronted With

annual energy require¬
ments
of
the
United
States,
reached an all-time production
the

of

peak of 620,000,000 tons last year.
When manufacturing, transporta¬
utilities

the

tion

and

they

lean primarily
coal

ous

and

as

bitumin¬

the

national

forward

moves

economy

front, demands
must inevitably expand.
Anthracite coal is the

additional 8

9%

or

on

for

broad

an

fuel

need

on

Increasing Com¬
petition of Other Fuel and Power Sources, and Sees No Reason Why
Its Profits Should Not Be
Improved.
Gives Facts Regarding
British Coal Trade and Its
Competitive Situation.

a

coal

source

of the

of

ceeding

na¬

30%

derived

is

mainder

and

the

from

re¬

water-

and natural gas. Anthracite
output in 1944 was 64,112,589 tons,
approximately the same as the
previous year, but well below the

Character

power

million

80

all-time

of

tons

high

of

1927

coal,

as

That

the

1917.

mineral, has been known for cen¬
turies, it is only within the past
fifty years that it became the
basis

of

of

one

livelihood

the

great indus¬
Directly affect-

of

than

more

half

million

various
vast

states

and

literature

the

has

nation.
grown

actual

minous coal distribution for
as

A

How Used

Locomotive

are

im¬

ovens

fuel

also

and

equally

between

purposes and railroad fuel.

The coal

plies

divided

was

fuel

industry not only
for

provides
are

than

railroads

them
of

source

coke

volume

the

with

traffic.

moved
any

sup¬

in

other

but

their
Coal

category of freight. Out of a total
42,983,200 cars of freight moved
last year, 8,694,100 were made
up
of coal, as
compared with 8,493,154 for the

preceding year.
loadings have increased

steadily every year since
began. This traffic, which
million

cars

war

29

the

last

Coke load¬

year.
a

comparable

trend.

They amounted to approx¬
imately 550,000 cars in 1940, 678,000 the following
year, 731,000 in
1942, 751,000 in 1943 and 756,000
last year,

(steel

Deposits of anthracite,
the
single
state of
Pennsylvania, make up about V2

coal and

lignite.
production

figures

other

second,

many

Russia

Britain

fourth.

It

from

aver¬

2,000 to 4,000 years.
Including sub-bituminous coal and

during the

lignite, authoritative reports show

third

true

faces in the peacetime future, will
be the essential concern of sue-

of territory conquered
beginning of the war, was
slightly in excess of the United
States, but this advantage was
resources

at

the

reau

In

1942, the first

that comparable figures
made available by the Bu¬

year

of

Mines, production of coal

in the United States
lion

tons, Russia

247

millions

behind

and

with

580 mil¬

was

second with
Britain not far

was

215,900,000

curaov.

(Continued

on

1138)

page

13.4

25.4

100.0

Source Markets Available
Coast

UNITED STATES GOVERNMENT BONDS

Coast in:

to

Securities of the

•STATE AND MUNICIPAL BONDS

United States Government
and its instrumentalities

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State and

Municipal Bonds
Offices ,.v

Public

Utility
BOSTON

Railroad and Industrial
Bonds and Stocks

BUFFALO
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Teletype NY 1-208S

Foreign

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'

I

•

NEW YORK 5, N. Y.
Teletypes: NY 1-1032,

Telephone: WHitehall 3-5300

CHICAGO

FIRST BOSTON

Exchange (/lssoc.)

Chicago Stock Exchange, Chicago Board of Trade

•

BOSTON

NEW YORK

NY 1-1680
;

^

.

*,

CORPORATION
Executive

Offices

tons.

German production cannot be es¬
timated with any degree of ac-

all

Total

in

single year 1939 Germany's
output of coal, augmented by the

20.6

and

and

that

the

were

50% of the world's coal, it is cur¬
rently estimated that the reserves
of the Unitecf States are sufficient

is

indus¬

uses

on

that in normal peace¬
time years, the United States has
been in the forefront with Ger¬

18.2

ing
Manufacturing

over

in

Domestic and office heat¬

must, per¬
force, be limited; an analysis of
the economic phases of the indus¬
try, together with the problems it

de¬

scattered

are

quickly ended.

These facts emphasize the im¬
portance of coal reserves in this
country and abroad.
Possessing

last

energy

coal

states.

located

war

U. S. Coal Reserves

to

which

of

coal show

ings have followed

larger
single

of

Coal

million

bituminous

22.4

try)

report

balance

less

or

bituminous coal

reservoir

of

% of Total

Coke

pressive.- This

more

our

posits

3.2

to

Approximately 44%

vast

consists

World

8.7

of

the

aged 6.3

Electric power utilities

assembled

1944

follows:

try and the statistical data which
been

bitu¬

of

this

amount

reserves

ing 55% consists of sub-bitumin¬

while

bers 58%

greatest

estimates the

decade

of

ous

output was used in manufacturing,
by the utilities and metallurgy,

is

use

num¬

total

of 1% of the total and the remain¬

30's, rose to 6.8
million cars in 1940, increased to
7.6 million in
1941, to 8.4 million
in 1942, to 8.5 million in 1943 and

will

an

that in round

means

heating

stitute

up

This

important degree
indicated by the
present character of consumption.
In a
typical year the railroads

to

coal,

around these aspects of the indus¬
have

is

amount, and the balance will go
for manufacturing and other
pur¬
poses.
The Bituminous Coal In¬

families, the problems
of the coal industry have had a
profound influence on social and
political
developments
in
the
a

civilization

industry from 18 to 20%, domestic
and
office
heating
a
similar

the

tries of America.

Consumption

approximately 20% of
the country's bituminous coal out¬
put; the electric utilities will re¬
quire another 12 to 15%, the steel

carbonaceous

a

of

industrial

based

upon

approximately

100 million tons in

While

and

Bituminous

operations, because of their im¬
portance, will be treated more
extensively.

tion's energy, petroleum provides

approximately

comment.

that

trillion tons.

K

Private Wires to Offices in Principal Cities

"

BOSTON
r

—i—

PETTIT

By KARL D.

Co.," Investment Counsel

Pettit &

Senior Partner, Karl D.

Thursday, September 6,1943

CHRONICLE

FINANCIAL

THE COMMERCIAL &

1082

<

Mutual Funds Differ in Their Objectives and
in Their Methods, Comparison of Their Performance Is a Dangerous Proce¬
dure.
Maintains That the Only Equitable Comparison Should Be Confined

Mr. Pettit Points Out That Because

The vast

of the
pany

growth in recent years
regulated investment com¬
has
invited an
unusual
of

amount

'

i

and

study

to

scrutiny
of
these funds.

Many attempts
been

have

made to evaluate the various

%

BHMMMI
BwWl|PpMl

referred to

ance."
This

is

a

dangerous

procedure.

Others

as

"perform-

•

A.

||BBfc
||m|
I

.

.

.

.

.

.

.

.

.

^

'i

KarI D' Pett,t

the

are

are

methods may be
meeting the prob¬
created
by
these cyclical
in

funds whose principal

funds which endeavor

keep fully invested at all times,
relying on their ability to select

managements
decrease the equity
Some

of

character

.

to

by

selves,

them¬

equities

the

dustries,
t

or

both.

Ordinarily
with

tendant

risks

great

first

the

are

at¬
last

and

phases of a bull market. A man¬
agement in order to successfully
cope with these phases would be
likely to make a poor perform¬

sound and intrinsic values.- Others

attempt to use "timing," the ob¬

ance

jective being to participate in the

attempting to meet the problem,

N

A management tak¬

view must ignore

term outlook.

near

by fiscal > year or
portion thereof disregards ?alt

Comparison

any

foregoing

the

comparing a
bear market

by

only

is

It

it.

the complete bull or
.(from peak to peak or from trough
to trough) that we can determine
if a management's objectives have

changing

either

performance

considered.

the
;

relation

in

to

another

not

successful.

been

ened to

a

It

-

may

lik¬

be

long distance race. Each

competitor

his

have

will

own

method of timing and running

his

The winner is judged by the

race.

result of

the completed race

not by any

A

and

portion of it.

common

fallacy is to

select

periods for comparison.
The year, the half year or quarter
year, are merely traditional peri¬
ods } useful for purposes
of ac¬
counting; The market • disregards
this convention and calendar peri¬
ods begin and end in disconcert¬
ingly -meaningless --times - in the
market cycle.

-

•

To Brokers

.

Dealers

.

.

to

85

and

back

to

100/ and

100 to 50 and back
to 100; then it would normally, be.
fconcluded that stock A had; more

Quality ;than. /B

because

greater stability.
the

In

-

w

,V\

-of its
J - "

final

analysis, results
satisfactory, but it is the
integrity, philosophy and methods
be

must

of

management

which must be
It must be determined if

judged.

the risks undertaken by the

agement

man¬

were commensurate with

the results achieved.
It

would

seem

from

the

fore¬

going that comparison, as such
might * be characterized by the
SEC as objectionable as it does
riot present, ".
; all the relevant
.

such

in

facts

manner

will

as

without due effort

on his part."
understanding of a
comparison of funds ~ would re¬
quire not only a real effort on the
part* of the investor but also a
person extremely well versed in
the field of security management,
i
It is evident that if comparisons
are undertaken, then it should be

between

It

is

suggested that

a

Fund and the investor.

almost

undeniable

that

vestment

companies

by

comparing periods when the
general market approximated the
same level at the beginning as at
the end.

should seek to

satisfactory method is obtained

those

to

obtained

are

by

emphasize.

UNLISTED TRADING DEPARTMENT

STATE

Insurance Stocks

and
Established 1812

Canadian Securities
Direct
We

maintain

active

Wire

to

Montreal

MUNICIPAL

Department

and

Toronto

Trading Markets in all seasoned Canadian

BONDS

Securities
MEMBER

FEDERAL DEPOSIT

INSURANCE CORPORATION

Goodbody & Co.
Established 1891
Members New York Stock

Municipal Bond Department

Exchange and other important exchanges
Head

NEW YORK 6
115

CHICAGO 3

Broadway

BArclay 7-0100




105

Tele. NY 1-G72

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West

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55

Office:

The National

Wall Street

New York

331

CG

of New York

City

UNDERWRITERS —DISTRIBUTORS —DEALERS
Net markets to institutions and dealers

railroad bonds

utility bonds

•

•

on

reorganization securities

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Quotations Furnished — Inquiries Invited

HIRSCH &
Successors to
Members

New

CO.

HIRSCH, LILIENTHAL & CO.

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Other Exchanges

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CLEVELAND

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Main

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HAnover
"

J

GENEVA

J.

2-0600 J

TELETYPE N. Y. 1-210

(Representatives)

City Bank

St.

Tele.

—

1

the

achieved by regulated in¬

Throughout the United States and Canada

Industrial, Railroad, Public Utility Securities, Bank and

be

clearly understood by the investor

superior
the indi¬
vidual attempting to meet his in¬
vestment
problem.
It
is
this
achievement
that
the
industry

a

Banks

.

100

Stock B from

results

>

It has also been

Over-the-Counter Securities

For example, if stock A ha¬
bitually moved over its cycle from

/Obviously

calendar

EFFICIENT SER VICE In

the

security

riod.

quality of the securities or by
Changing the concentration in in¬

used

the methods and means

must be

There

comparison may

inequitable,

to ' attain

...

»..•

judge

individual

an

only by its price at the begin¬
ning and end of a period, but also
by its behaviour during the pe¬

considerations. It
would appear therefore that the
increase or
position depending upon the phase only equitable comparison should
of the cycle. Other managements be confined to a complete bull
meet the problem by varying the pr bear market and no segment of

on

ratios.

••

.

Many different

fluctuations.

distinguished from

as

•

„

lems

Some com¬

objective may be income, others
appreciation.
These two objec¬
tives may of course be combined
to produce any number of varia¬
tions of management policies.

objectives differ,

be

ratio

ing a long range,

7

both stocks and bonds on a

There

the period ot

concentrate

individual field.

:

|p

.

funds

other

flexible

re-

veals that,

to

confined

are

ket.

employed

stocks.
bonds.

common

Still

fixed

Mgr

to

some

bine

Bfl

cursory examination of the

problem

adhere

Some

single phase.

of

hot

comparisons were limited to a

if

opportunities afforded by the cy¬
characteristics of the mar¬

clical

methods and philosophies of
management as there are funds.
Funds vary in their composition.

of the results,

the

may be stated, almost with¬
challenge, that there are as

many

manage-

ments, usually
by a measure

It

out

basic r objections./v We
merits

Says Mutual
Investors.

Complete Bull Market and Not Upon a Periodical Basis.
Funds Should Emphasize Their Superior Advantages to

a

sThis method, while superior to
used, still has two

other methods

,

135 South La Salle St.
State 8770

—

Direct Wire to Chicago and Cleveland

Teletype CG 1219

162

Number 4418

THE COMMERCIAL

r. •

& FINANCIAL CHRONICLE

■

'

:

-

i

:

.

i_l

i'

of

my

"

•

y

-•

•

'

it:*::. '

itt

m

be

mem

From

e e

rs.

this,

; 1

received

some

valuable

comr

and

ments

especially
d

b t

e

d

e

Loeb,Rhoades
&

Co.

for

his

suggest ions.
This
prelim¬
inary
outline
provided
for
20

1

tures

e c

and one addi¬

Paul I. Moreland

tional

period

for

exam-

i

an

n a

t i

o n

or

testing session.
On the basis of suggestions from
brief¬

ing, I believe fifteen lecture

pe¬

riods with time for discussions of
two hours

each with

ing period

adequately
the basic ground.
can

cover

The

4.

A.

and

Communications

Mar¬

Systems

and

of

Corporate Obligations;.
Bank, Insurance, and Mutual
Security Issues.
10. Municipal Issues.
11. United States Government
and Foreign
Security Issues.
9.

It

it

we

Trading Knowledge in Rela¬
tion to Other Departments of the

is

made
who

the

SEC,

the

Commis¬

)

this

lack
a

of

booklet

available
elect to

one

less

of

was

in.

at

cost

to

such

a

on

be

those

course.
ma¬

pre-

1137)

page

f

Associa-

tion'

a m o n

the

"Grass
Con-

stituents"

o

f

the prin¬
reason

•

i n

W.

Kingsbury

have

been

Boren Bill
of

no

ever

g s

•

were

the

on

of
the

the Boren Bill above

referred to only one had the dis¬
tinction of

being introduced pub-

lically to members of the Commit¬
tee.

of such

Before

mentioning

see

an

a

stand and let

man

important congressional

committee.

You gentlemen
have, no doubt,
gathered
that
your
Municipal

Committee
this

would

attended

he

whose Con¬
gressman drops his
pressing duties
to introduce a
frieqd to members

there

possibility of the
reaching the floor

who

neighborhood

please, Mr. Graham

mind,

on

had

the

are

only

on,
not

are,

at

thing

are

other

no

important to

municipal

we

have!

and the only thing:
going to stop working

is the BOREN BILL.

vinced that

that

we

glad to plead guilty.
thought we have had in

of your committee

so

one-track

a

time,

The only

we

has

To that charge

worked

persons

hearings

„

everyone

mind.

interesting to note that

neighborhood, regard-

what

It

might also be added
that this is the first recorded in¬

held. Had they
not been held

Congress.
It is

in the

stance of everyone in the
neigh¬
g; borhood not knowing him. If you

that the hear-

J.

and

o

our

cipal

knowledge

form

take

(Continued

Post-War Committee

;

stance of him not knowing every-

year, and by
indiv i d u a 1

as

Congressmen

is

topic.

year

last

Roots"
-

part

Further, it seems to be the
jority consensus that no

sions.

well

;members

the

graphed

Business.

State

job

the

h

^

,

this

;

as

mem¬

thought of this Com¬
mittee that, once all the briefs
are
prepared, they should be com¬
piled into an inexpensive mimeo¬

13.

&

Committee's

how to brief

on

Commodities.

NSTA

on

also

j

;

—,'V"!
'
'
.'j."..,
municipal rep--gentleman's name, if such mention
.resentatives is necessary, let it be observed
working with that this is the first recorded in-

was

falling-down

the

and

Fund

NASD,

'

prob¬
ably due to the press of business

of

of

]

of

at the

Committee

The

:

.,

r!nrv>mi f

ber, Israel Zippin has cooperated
by. submitting a review on For¬
eign Securities.

7. Corporation Bonds.
8. Real Estate Issues and
Special

Functions

|

*

_

Insurance Issues and,
instance of one

5. Common Stocks.
6. Preferred Stocks.

14.

j

Bank

Trading, Quota¬

'

,

have far to go. I
personally, have
briefed three of the
topics and
Irving Rice has submitted one
very excellent brief. John Hecht
has submitted a review on

tions, Trading Methods and Prac¬

12.

;

r

gram;; is the actual briefing
these subdivisions and oh this

tices.

Types

Committee's report submitted
by Chairman J.

pro¬

!

Uses.

Position

Security Analysis.,

Review and Examination.
;< >The laborious part of this

Offering of New Issues

Their
B.

final test¬

a

Over-the-counter

15.
16.

of Securities.

Committee members and work in
connection with the actual

The

3.

to

Harry Reed of

Sv

ket.

am

in-

pro

posed are as, follows:1
1
•
:
n ;1. Organized
Security and Com¬
modity Markets.
;

;^2.

'

i

•

as

■

Com

The fifteen subdivisions

or t s

Your Committee
points with pride to, and modestly takes credit
for,
the
hearings; held in February, 1945, before the Interstate and :
Foreign
Commerce Committee of the House of
Representatives of Congress on the
Boren Bill.
;It is generally agreed that the work done by members of this

Mid-year Meeting in Chicago.
Following the Mid-yean Meeting, I prepared a
preliminary outline of
suggested
lecture course td be termed "Security Trading'f and submitted
''J'"
this outline to

Following is text of the
Kingsbury:
\
«

W.

under date of Jan. 31, 1945 to the

each

Rep

-

Bond

Following is report of the NSTA Educational Committee, Chairman of
which is Paul I. Mor eland:
j
'
t-'r^
l; This report will serve t<j> supplement my report which; was submitted

a

'

it tees

o mm

■

1083

......

'

Volume

and

our

Members

firmly

one

business, both

corporate,

(Continued

on

con¬

thing is

page

Report

at

1141)

this

|

;

Following is text of report of NSTA Post-War Committee, headed, by William M.

1

Summers:

Your Post-War

Committee, after careful deliberation, has concluded that

add to the recommendations that

of record, we repeat

we

submitted to the Association

a

them herewith:
an Employment Committee in each of

(1) The establishment of

/

>

,.

../-v.duty
be

will

it

assist

to

members

our

the

farmed forces
to

either

turn

re¬

the

to

position which
-

held

they

their

prior to

enlistment

or

place them in
positions.
(2) The es¬

new
-

classes
the

under

super¬

vision

of

affiliates
Willis M. Summers

teach
m e

veterans
mentals

or

n,

our

t

o

The feasibility of these sugges¬

and

ethics

of

advertising the desirability




/

affiliates, whose

confirmed

by

a

Exchange to inform the
public of the workings of that
organization and also by the an¬
nouncement

recently by the Asso¬
Exchange Firms
appointment of a com-:
mittee
to
place
returning war
veterans in positions.

ciation

of Stock

the

of

Your

wishes

Post-War

Committee

to

emphasize once more
the desirability of the Association
carrying out our recommenda¬
tions, especially those that relate
to the
our

veterans.

war

security business
It

doldrums.
for
and

entered

men

during the past three
years, during which time, thou¬
sands of our
men,
both young
and old, were
away on the battlefronts of the world:

those

of

certainly

who

not

in the

discouraging

was
us

an

were

in

it

attractive

business for anyone to enter as a
career.

We

are

all

Does

this

ligation
to

put
to

us

heavy ob¬

a

do

familiar with

the change for the better that has

Public Utility Stocks

all

we

can

that these

see

return,
soon

not

on

are

as

boys, when they
placed in positions as

possible?

Many

of

the

younger men have never been in
the business world.
The security

business

to-day

established

has

itself

as

once

Copy

oim

request

again

essential

an

profession in the economic world.
It

should

career

sented

offer

a

bright

future

to these young men if pre¬
to them properly.

When many*
The war is over and thousands
the service, of men will be
discharged from
was

for

taken place

Stock

either

trading in

been

program started by the New York

of

(3) The development of a pro¬
gram

tions -has

the

Over-the-Counter securities.

as

investments.

young

otherwise, the funda¬

Peacetime Outlook
x

of Over-the-Counter securities

v

tablishment of

matter

a

❖

returning
from

our

cannot

we

As

year ago.

the armed forces
few

months.

concentrate
now,

if

we

The
on

are

Bear, Stearns
Members New York Stock

during the next
time

for

this work

to

show

us

Co.
*

to

is right
our

«

Exchange

NEW YORK

ap¬

1

CHICAGO

preciation for the sacrifices they
have made for us and strengthen
our trading fraternity.
m

.v..

Seligman, Lubetkin & Co

!.

INCORPORATED

>:

y

?

•;

K
H

41 BROAD STREET

NEW YORK

4, N. Y.

Specialists in Railroad Securities
• Guaranteed Railroad
•

Stocks

Lease Line Railroad Securities

•

Underlying Mtge. Railroad Bonds

•

Minority Railway Stocks

•

Reorganization Railway Bonds
Selected Situations at

GUARANTEED

RAILROAD

all

Times

STOCKS-BONDS

INCORPORATED

25 Broad Street

New York 4,

General Public Utilities

Corp

Common Stock

To be Issued Under the

Associated Gas and Electric Plan

Trading Department

Members New York Stock
120 BROADWAY

NEW

Telephone

YORK

5

Teletype

REctor 2-2300

NY 1-1693

WITH

OUR

Kobbe, Gearhart & Company
INCORPORATED

Members Netv York

45 NASSAU STREET
TELEPHONE:




RECTOR 2-3600

.

Security Dealers Association

NEW YORK 5

PHILADELPHIA TELEPHONE: ENTERPRISE 6015

f

BELL TELETYPE: NEW YORK
1-576

Volume

Number 4418

162

THE COMMERCIAL & FINANCIAL

(Continued

page 1084)

with

maintained

Agger,

banking

*

held

by

and

banks

the

the

deficit

of

New

the

post-war

period

dangers that it has

ary

increasing their

of governments at
almost $2,000,000,000

Or

month.

With

the

banks

$100,000,000,000 of
billion

300

per

saving

holding

prospective
public debt, a

be

commercial

made

and

ital

stock

of

and

both

that

Reserve banks

If

lead

method

and/or

another the

or

control

mercial

and

of

our

of

Effect

on

Dual

System

of Banking
As to

The subject is

developed
that

here,

to

state

our

more

the

of

place it will

takes

of

the

of

economic

Bank

credit

peculiar

feature

good

another's.

as

of

guess

our

become, civil

may

Without

the

of

advantages
this

point,

divided

l«t

standing

me

or
demerits,
disadvantages

or

system

that

state

banks,

sees

our,dual

sion

the

become

"But in this

coun¬

of local in¬

branch

.

banking

secrets

happen.

we

will

Members

therefore,
for favoring

UTILITY

PUBLIC

and

ization
banks
as

a

and

afford¬

as

New

York

Members New

York

49 Wall Street

Stock

Curb

Exchange
Exchange

New York 5, N.

Telephone: HAnover

Y.

2-7900

Teletype: NY 1-911

responsibil¬

an

expan¬

almost

anything

But in my opinion,

probably

than

control of

quiry Pamphlet No. 2, on "Ameri¬
Banking and Currency Stabil¬
ization," pp. 8-9.

can

—

Vilas & Hickey

.

banks,

costs

may

rather

MUNICIPAL

BROKERS

reserves—would

banking

of the opinion that
of branch

own

assuming all banking

6In the Monetary Standards In¬

E.

BOND

a

less

have

more,

governmental

banking, with national¬

of

our

Federal

always

Reserve

looming before us
possibility.
Branch banking

qAllen

&

Company

Established 1922

RAILROAD

—

INDUSTRIAL

SECURITIES

We
Direct

maintain

contact

active

with Markets

%

trading departments
in

principal financial centers
30

BROAD STREET

NEW YORK 4, N. Y.

Telephone:

E. H. Rollins & Sons

Bell

HAnover 2-2600

Teletypes:

NY 1-1017-18 & 1-573

Incorporated

NEW

Bell

WHitehall

PHILADELPHIA

BOSTON

YORK

40 Wall Street

Tel.

75

(5)

Federal

Street

Tel. Hubbard

4-4860

System Teletype NY 1-490

Bell

System

Tel.
Bell

La Salle Street
Central

Tel.

Teletype BS 142

SAN

CHICAGO
135 South

Walnut Street (2)
Penny packer OlOO
:
System Teletype PH 268-269

1528

(10)

5500

Bell

FRANCISCO
Direct Wires

Russ

(3)

Tel.

7540

System Teletype CG 530

Bell

Building

(4)

Exbrook 7900

System

Teletype SF 370

1
:

;

!

Offices

or

Representatives in Other Principal Cities Throughout the Country




to

Los

of

banking

What does the future hold for
American banking?
It keeps its

and

E.

our

system is confronted.

banking on a re¬
gional, or perhaps intra-federalreserve-district,
basis
would
strengthen our present system of
banking.

With the Gov¬

losses, banking would be carried

Dr.

are

servants working for

ers'

in current trends

many

banking.
If bank¬
ing remains independent of gov¬
ernment ownership or
rigid gov¬
ernmental control,
however, many

banking, and out of taxpay¬

money

questions with which

Beyond that the post¬

to

ities of branch

twelve

whc

system.

in

general.

few of

become,

or

out¬

strong possibility of the ending

of

will

ten

an

is interested in both national

a

from

answers

the average

have special reasons
the 100% system, both

the bank¬

authority

say

banking

10%

branch

independent

ernment taking the profits, if any,

this

at

over

past

Government,

going into the merits
the

system—i.e.,
on

.

the

they have feared they might

as

the

own

thought-provoking and vital

He

of

years

be

has

the

INDUSTRIAL

in many localities, be of
doubtful benefit.
The small

than

If

ones.

Government takes

chartered

from

would,

mixing of
The Labor

been

banking system, one's

about

dependence,

socializa¬

such a system, be given
weight in the extension or

withholding

give its

always

banking."

try, with its traditions

or

purely

nationally

period will probably have to

war

of

PUBLIC UTILITY

continuation of

a

10%

make

banks

have

branch

-*■

present

more

threatened."

for

a

small

they

system of keeping

char¬

what

1791,

our

sub¬

ing system bankers

in

the

save

something

of

1863-4, and in a very real sense
since the First Bank of the
United
States was set
up

also

the

control

nationalization

under

what may happen to our
system of banking in the
United States, which, since the
National Banks were started in
dual

and

RAILROAD

banking?
100%" system, if adopted, would
"save the big banks from some¬
thing which they dread; it would

private

credit

and

system
of
branch
Fisher claims that the

ing the greatest safety and as af¬
fording an escape from branch
England and the
Joint
Stock banking." (pp. 145-146.)
Banks by a political
Putting the argument on a more
party is a
case
in point.
One is reminded realistic basis, many of the larger
of the old
adage, "When politics banks in Chicago and New York
and banking meet it is
always bad feel that with their widespread
for banking."
Political consider¬ correspondent system, they have
ations may and
frequently will, most of the advantages but with

banking.
Possible

dual sys¬

our

said

nationalization

com¬

extended,

dual system

in the post-war pe¬

way

Party's program in Britain of the

one

systems

widespread

relation

inevitably to a
politics with banking.

ownership

both

reserve

by

to

in

financing continues to be

$164,399,000, ignor¬

over

ing give

riod and be superseded by a more

points out that

tion

Government to take

A

in

"When Politics and Banking Mix"

ing the other capital items. Hence
the
possible
incentive
for
the

be
our

Branch Banking?

dreaded

is

state

of

essence,

now.

more urgent,
degree that direct fed¬

banks

in

develop

national

for

govern¬

future

unit system of bank¬

our

and to the

Federal

12

be

be

that

Shall

bank credit becomes

tered

banks

The total cap¬

the

What About

nationally char¬

dent existence of

our

13,268 FDIC
only $7,990,000,-

of

to

may

by

policy which,
political.

is

is

financing
through normal banking chan¬
nels—to that degree the
indepen¬

our

member banks is
000

if

reserve

nationalized.

were

it

stituted

of approximately 2y2 bil¬
a year in interest bur¬

could

large

but

eral

lion dollars

den

too

degree

our

dollar

banking field

tered institutions.

market operations,

open

may

tem of state and

adding about 7 billions a year,
better than $500,000,000 per

are

crisis

the

month, while the "Feds," in their
one-way

the

guided

mental

financing based on borrow¬
ing will have the same inflation¬

the maintenance of

of

it

as

be

to

the

And federal

now.

mercial banks

rate

bor¬

hotly debated

special

holdings

Jersey,

versus

as

banking systems.
That total has
already been reached as the com¬
are

probably

lematical.

State

"Taxation

being debated

commercial

will

banking institutions remains prob¬

governmental
control.
Bankers would not need to "sense

Banking and Insurance

rowing will be

ment

footing under bureau¬

tend

for

our

on on a new

the pulse of industry" to see what
its credit heeds were, but would

of

the

in

and

Department

sioner

Banks combined reached 100 bil¬
lions it was time to look sharply

eral Reserve

the

cratic

writes :6

Reserve

signs of impending govern¬
ownership of both the Fed¬

of

Economics at Rutgers Univer¬
sity, and concurrently Commis¬
for

commercial

Federal

Head

of

classes that when the government
debt

1085

The Post-War Pattern Of American
Banking
from

terest burden on the "huge post¬
war U. S.
Government Debt."
I
have

CHRONICLE

Angeles and New Orleans

EUROPEAN AFFILIATIONS:
Anglo-Continental
Adler

&

Co.,

A.-G.,

Exchange
Bankers,

Limited,
Zurich

London

(Switzerland)

30 BROAD ST,

NEW YORK 4
Bell System

Teletype NY 1-515

GRACE NATIONAL BANK
OF NEW YORK
COMPLETE

CLEARANCE
•

FACILITIES

FOR

LOCAL AND OUT-OF-TOWN

Acceptable Everywhere

Brokers and Dealers

Write for details

to

Underwriters Trust Company

Security Clearance Department
HANOVER SQUARE, NEW YORK
5, N. Y.

HOME OFFICE

50
Member Federal
Deposit




Insurance Corporation

BROADWAY

NEW YORK 4, N. Y.
Member

F.D.I.C.

COAST TO COAST WIRE
SERVICE
New York

-

Chicago

-

St. Louis

-

Kansas City

.

.

-

Los Angeles

' \

I

Specialized Dealer Service in Over-The-Counter Securities

STRAUSS
Members New York

32

Broadway

NEW YORK 4

BROS

Security Dealers Ass'n

Board of Trade Bldg.
CHICAGO 4

DIgby ,4-8640

Teletype NY 1-832, 834

Correspondents: White

Harrison

2075

Teletype CG 129

& Company, St. Louis—Baum, Bernheimer Co., Kansas

City—Pledger & Company, Inc., Los Angeles

Volume

162

Number 4418

THE COMMERCIAL & FINANCIAL
CHRONICLE

Association BOOSTERS
ADVERTISEMENT

ADVERTISEMENT

FAROLL & COMPANY

(Continued from page 1086)
Lancelot Howard

(N. Y.

208 S. La Salle St.

C.)

CG 156

Frank H. Hand (N. Y. C.)

Willis

(Phila.)
J. Gentry Daggy (Phila.)

A1

Paul W.

135 S. La Salle St.

Salle St.

La

S.

(3)

Randolph 3941

Central 5690

CG. 1122

FIRST

Harold Barclay
Elmer

SECURITIES

COM-

PANY

,

39

CG

..

,

S. La Salle St.
540

(3)

'Randolph 3900

S. La Salle St.

CG

257

Dearborn

1399

>5F*

Salle St.:

(3)

Andover 1520

Donald B.

Stephens

Arthur

Sacco

C.

-

"

-

!

:...

,

(WILLIAM A.)

William

Comstock

& CO. I

Fuller

A.

Wallace T. Combiths

(CARTER H.)
S. La Salle St. (3)
State

CG

La

209 S. La Salle St." (4) "
CG 146
Dearborn 5600

CORBREY

99

S.

FULLER

'

1501

Edward P. Renier

CG

COMPANY

Arthur II. Botlien (on war duty)

(4)

Erling J. Hansen

135

134

George W. Smith

231

F.

SECURITIES

George F. Hummel

COMSTOCK & CO.

Daniel

(3) '

>

OF CHICAGO

W. Hammell

CHANNER

Security Traders Association of New York, Inc.

Spink

FIELD BLDG.

CASWELL & CO.
120

(4)

Andover 1430

& CO.

6502

Jerome

F. Marquardt

Audran

J.

Richard F. Abbe

Joseph T. Fuller

.

Carter H. Corbrey

135 S. La Salle St.
CRUTTENDEN & CO.
209

S. La Salle St.

CG 35

CG

(4)

115

R.

R. Tuerk

GREENEBAUM

John W. Eustice

10 S. La

Salle St.

CG,405

Franklin

CG

1368

(3)

135

S. La Salle St.

CG

1200

8622

:

&

CO., INC.

(3)

Central
Alfred
John

Dearborn 6161

'

(3)

J

Randolph 5360

HARMET (A. A.)

Leo J. Doyle
Fred J. Casey

& CO.

(4)

9744
A.

J.

Harmet

Michael J. Heany

Colnitis

135

S. La.

CG 1234

&

CO.,

'

"

Monroe St.

St.

-

-

William J. Lawlor, Jr.

Andover 2424

Charles E. Enyart

Wm. A. AndersonBernard

R.

t

Keegan

Raymond J. Friss

Jean A. Horacek

(Continued

on

page

i

Dealer Markets In

1088)

BANK STOCKS

—

Supplemented by
answer

Bacon, Stevenson & Co<
■Members ?<{ew
Members New

a
dealer

INSURANCE STOCKS

sales-statistical service designed to
inquiries and promote sales.

Inquiries invited

Yorf{Stoc\Exchange
Tor\ Curb Exchange

MUNICIPAL

HUFF, GEYER & HECHT

BONDS
Boston

9

NEW YORK

10 Post Office Square
HUbbard

0650

Chicago 4

5

67 Wall

Street

WHitehall

3-0782

231 S. La Salle Street
FRanklin

PRIVATE

Broadway, New York 6, N. Y.




WIRE

PHILADELPHIA,

SYSTEM

ST.

CONNECTING:

LOUIS,

Telephone DIghy 4'4100

LOS

NEW

ANGELES,

TELEPHONES

YORK.

CANADIAN
Government, Municipal and Corporation Bonds

REctor 2-1545
NEW YORK

Bell System

mmmmm

5, N. Y.

Teletype—NY 1-69

CHICAGO,

SEATTLE

TO

PORTLAND, Enterprise 7008

PROVIDENCE, Enterprise 7008

Two Wall Street

BOSTON,

FRANCISCO,

SAN

HARTFORD, Enterprise 6011

F. B. ASHPLANT & CO.

7535

CG-105

NY 1-2875

39

D. Frederick Barton

T. G. Horsfield

Wil¬

,

(In service)

(3)

Willis M. Summers

A. C. Allyn &

Randolph 8800
Hickey, Jr.

C. Rogers

Harry J. Peiser

Gibbs, Laird, Bissell & Meeds; Secretary: John S. French,
Co., Chicago; Treasurer: George V. Leone, Frank C. Masterson & Co.; Directors: P. Fred
Fox, P. F. Fox & Co.; Micheal J. Heany, Jos. McManus & Co.; Thomas A. Larkin, Goodbody & Co.;
Frank A. Pavis, Chas. E. Quincey &
Co.; Harry J. Peiser, Ira Haupt & Co.; Willis M. Summers, Troster,
Currie & Summers; National Committeemen: Thomas G.
Horsfield, Wm. J. Mericka & Co.; D. F. Barton,
Eastman, Dillon & Co.; Michael. J. Heany; Richard F. Abbe and Willis M. Summers.
■ ■

(3)

Mathew J.

John

CAMP

Salle

Frank A. Pavis

President: Richard F. Abbe, Van Tuyl & Abbe; First Vice-President: Chester E. de Willers, C. E. de
lers & Co.; Second Vice-President: Louis A.

HICKEY & CO., INC.

Thomas D. Casserly, Jr.
J. C. Culhertson

965

]

INVESTMENT

208 S. La Salle St.

DOYLE, O'CONNOR

CG

j

H. Kant

Herbert

T. Leo Reynolds

100 W.

P. F. Fox

Leone

-

39 S. La Salle St.

(PAUL H.) & CO.

VAN

George

CO.

Murray C. Mathews

INC.

French

William J. Becker

Murphy

James E. Hitchcock

ENYART,

(3)

'

L. J. Thorseu

Milton R. Blohm

DAVIS

S.

Montgomery

Fred

H.

John

*

Harold C. Nelson

Walter W. Criittenden

James

Louis A. Gibbs

Andover 3000

Thomas

Dearborn 0500

I

!

GLORE, FORGAN & CO.

George W. Schultz

C. E. de Willers j

Cavanaugh

lv

I

J

National Security Traders
ADVERTISEMENT

1;i

(Continued from page 1087)

Ward

231

S.

La

CG 972

Salle

St.

LAMSON BROS.

Randolph 5686
King

CG 262

LINK, GORMAN & CO.,

CO.

&

Lawrence

Central

GERNON

&

LEASON

&

CO., INC.

MUNICIPAL BONDS

105

LEBENTHALfi CO.
135 BROADWAY, NEW YORK 6, N.Y.

•

MUNICIPAL

REctor 2-1737

^

{OldestHouse in America SpeciBONDSj
alizing in\

S.

(CARL)

Bell

■

(3)

S. La

Carl McGlone

CG

900

M.

System Teletype NY 1-2272

C.

TRUST CO.

GRADISON

JACKSON

&

Gordon

Inquiries Invited

RICE

1'

$■
i

i) ■

CI

D. Gregory

THOMAS

(4)

Wi

W.)

(E.

COM¬

AND

135 S. La SaJle St.

Linder

CG

(3)

Franklin

1795

(DANIEL F.)

AND

29 S. La Salle St.

Timothy Collins

Arthur A. Green

C.

(3)

208

S. La

Salle

CG

1268

Andover

&

St.

CO.

John E. Joseph

1811

KATZ AND

WELSH, DAVIS & CO.

25
■-M-:

CG 225

BROAD

BROS.

&

ST., NEW YORK 4, N. Y.

ZIPPIN &

HUTZLER

CG

'

120 S. La Salle St.

CG 1070

J

Zippin

&

Dixie

BROCKIIAUS

Pete Dunne

POHL

Cincinnati, Ohio

State 5850

Union Trust

CI 385

J. Stenger

Albert

Davidson

L.

Cherry 6422

Roy C. Nelson

& CO.

(3)

r-l

CI 366

(4)
Randolph 4696

451

Israel

SHILLINGLAW, BOLGER
Private Wire to Boston

NELSON, BROWNING & CO.
Carew Tower (2)

COMPANY, INC.

208 S. La. Salle St.

Howard

Teletype NY 1-956

'! • f:
;

<

Central 9020

Edward Roob

WHitehall 3-0272

Harry C. O'Brien

John F. Partridge

231 S. La Salle St. (4)

CG 840

(2)

Arthur V. Katz

Franklin 3161

William C. Kegley

SALOMON

O'BRIEN

Main 0138

CI 489

135 S. La Salle St. (3)

Andrew R. Williams

CO.

(2)

Main 4640

(4)

Carew Tower

'

Members New York Security Dealers Assn.

4th St.

E.

CI 567

State 4151

Herbert J. Burke

I

Smith

Kenneth

JOSEPH (JOHN E.) & CO.
18

WEBBER-SIMPSON
ROGERS & TRACY, INC.

CI

COMPANY, INC.

Terminal Bldg.

381

6515

Main

(EDWARD) & CO,

Edward F. O'Connor

William L.

Main

1300

Jack

We

C.

Pohl

Robert A. Jameson

REITER

Siegman

always interested in Offerings of

C.

H.

Ray

Industrial & Public Utility Stocks

CI 485

Oilier

Clifford

J.

H.

We

have

substantial

& CO.

Main 1341

George R. Happley
Korte

Thomas J. Hughes

Arthur W.

Paul W. Glenn

Percy W. Yovvier

(In Service)
R.

SEUFFERLE

Ruzicka

1st

Nat'l

CI^

284

W.

Power

(2)

Bldg.

Clifford H. Reiter

Grischy

Horan

Carew
CI 263

CLANCEY (W. P.) & CO.

for retail distribution.

(C. H.)

Union Trust

(In Service)
are

(2)

.

Bldg. (2)

Edward Brockbaus

•4

Jr.

George C. Riley

(3)

Randolph 2977

Ralph S. Longstaff

&

(2)

Main 2560

Arch F. Montague

O. D. Landis

DUNNE

CO.

&

Bank Bldg.

James M. Hutton,

UNION SECURITY CO.

120 S. La Salle St.

a

1433

E.)

(W.

Nat'l

First

2434

COM¬

Board of Trade Bldg. (4)
CG 1276
Webster 4200

CG 917

>'>!?■

Main

Clair S. Hall, Jr.

HUTTON

CI 586

Paul J. Skepnek, Jr.
Fred E. Ungeher

*

156

PANY

State 0860

Kenneth A. Ellis

SUGAR SECURITIES

if

I

& COMPANY

Henry J. Arnold

PANY

In All

;v'

(CLAIR S.)

Union Trust Bldg. (2)

Ray Harrell

;>"
■

(2)

George H. Phillips
HALL

Steffes

Bradford W. Shaw

John D. Murphy

;5

& CO.

George B. Benson
James W.

209 S. La Salle St.

Evar L.

Back

(W. D.)

Main 4384

CI 68

CURTIS

CG 1247

1627

Terminal Bldg.

Dixie

Swift

Charles

(2)

Main

494

Edward W.

0811

Dearborn

E. 4th St.

Leo J. Nussloch

(3)

Harold Blumenthal

Franklin 7070

Ruggles

WEBBER,

Salle St.

Wilson
& CO., INC.

James E. Madigan ' '

Louis C. Henke

(90)

George J. Vojta

PAINE,

18

Loveland, Jr.

S.

(W. E.)

CI

SWIFT, 1IENKE & CO.
135

CG 368

FOX

Andover 1200

Franklin 3848

(THE)

O.

Becker

H.

Fred

Cheyney

INODD-LOTJ
MUtNTHALfrCA'.;

Franklin

& CO.

Salle St.

La

Richards

C. A.

SMITH, BURRIS & CO.
120 S. La Salle St. (3)
CG 878

(2)

Main 3776

150

Welch

H.

Thomas J. Purcell

(4)

CO.

&

Central Bldg.

Union

State 2400

Edwin P. O'Brien

Springer

50 S. La Salle St.

ODD LOT MUNICIPAL

iimnthalhol.;,

FIELD, RICHARDS

Elmer W. Erzberger

NORTHERN

BONDS
IH-OM'IQTS;

COMPANY
S. La Salle St. (4)

Albert Leritz

State 6693

McGLONE

(2)

AND

(CARL) & CO., INC.

CG 1124

Street

Cherry 4070

Lee R. Staib

CI

Andover 1343

William P.

560,

Capt. George Eustis

Edward

Raymond F. La Pak

208 S. La Salle St.

CI

Frederic F. Latscha

CG 252

(RAWSON) & CO.
S. La Salle St. (3)

MARKS

E.

Clark J. Robertson

231

LIZARS
135

(GEO.) & CO.
4th

18

Arthur W. Parker

SINCERE

Hartwig

CG 245

Dearborn 1421

CG 864

EUSTIS

(In Service)

S. Torgerson

Carl A.

(3)

State 6001

CG 982

State 7844

CG 1213

La Rocco

39 S. La Salle St.

0780

(4)

208 S. La Salle St.

Frank

(3)

INCOR¬

PORATED

(4)

Wabash 2400

Forrest Laidley

105 S. La Salle St.

COMPANY,

&

INC.

Lowell Niebuhr

141 W. Jackson Blvd.

Cunningham

HOLLEY, DAYTON

MINTON

SILLS,

Harvey G. Leason

Dayton

ADVERTISEMENT

ADVERTISEMENT

209 S. La Salle St. (4)

(4)

Thomas E.

Bernard J.

W.

Ernest A. Mayer

HICKS & PRICE

Association BOOSTERS

ADVERTISEMENT

ADVERTISEMENT

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1068

Bank Bldg, (2)
Parkway 2300

(WM. C.) & CO.

Tower

(2)

Parkway 4664

Wm. C. Seufferle

Morris W. Berman

Clancey

(Continued

on

page

1089)

placement

for issues of "growth" companies.

Bonef

&

Goodwin

INCORPORATED

W. I. BANIGAN & CO.
SUCCESSORS TO CIIAS. H. JONES

&

Established 1894

CO.

Established 1904
BOSTON 6

50

Broadway

New York 4, N. Y.

Tel. HAnover 2-8380

8

Tele.

S. Hanover Street

Scranton, Penna.

1050

Telephone

Teletype Carlisle 2!>8




1-2864

First National Bank Bldg.

Carlisle, Penna.
Telephone

NY

30

Teletype

) *5

.

•*.,\ r : A:,

.

i', 4

■'

3-1155
SN

15

Federal Street

NEW YORK 5
63

Wall

Street

PORTLAND
120

6,

ME.

Exchange Street

Number 4418

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

National

Security Traders Association BOOSTERS

ADVERTISEMENT

ADVERTISEMENT

Frank J.

(Continued from page 1088)
Ill

:

Bldg. (2)

R.

Main 5072

CI 188

Marion H. Woody

Ray Houston

;

E.

G.

Horsfield

Union

Union Commerce
CV 67

CLEVELAND

&

CV 443

L.

&

Ed

Warren

Otto

Canavan

C.

E.

Jim

Jacques

Rex

Cromwell

Maloney

Ray

M.

Bennett

Harold

Stone

Pearson

(Continued

CO.

Commerce Bldg.

B.

Pierce

on

page

1090)

(14)

Main 6865

Columbus, O.

CO.

CV 496

Emile A. Legros >

Joe

Rupe

Snowden

George Placky

Bldg. (14)

(THE) COMPANY

51 N.

Terminal Tower (13)

'

S.

Rauscher
C.

Rupe

Gordon

T. G.

Bobo

Rogers
J.

D.

Main 6800

Harry Gawne
OTIS &

(14)
Prospect 1571

Dallas

(1)

(1)

Central 9127

Leo J. Schultz

CO.

OHIO

Nat'l City Bank Bldg.

John

Bldg.

Riverside 9227

II.

Julian

Bank

J. R. Gatewood

(L. J.)

CV 255

MERRILL, TURBEN

186

Thomas

Stiver

SCHULTZ

(N.Y. C.)

t,

/

(THE)

Alvin J.

(13)

Robert T. Jones

F. M. Asbeck

Cleveland, Ohio
FIRST

Jr.

CO.

Borton

Thomas

G. Heimerdinger

John

Edward E. Parsons,
7C. II. Doerge

&

Terminal Tower Bldg.
CV 283
Prospect 4500

William J. Mericka

HEIMER-

Mercantile
DL

Charles

SAUNDERS, STIVER

(DALLAS) & SON

DL 395

RAUSCHER, PIERCE & CO.

John

George E. Jaffe

(WM. J.) & CO., INC.
Union Commerce
Bldg. (14)
CV 594
Main 8500

DINGER

Dixie Terminal

(.14)

Cherry 6000

Robert W. Thornburgh

&

Union Commerce Bldg.

MERICKA

RUPE

Kirby Bldg.

QUJNN (W. P.) & COMPANY

Main 6400

ADVERTISEMENT

Crum

Dallas, Tex.

Corwin L. Liston

Benjamin J. McPolin

Parkway 6820

F.

William D. McCabe

(14)

CV 490

Wesley C. Thornburgh

WOODY

(14)
Prospect 6300

CV 97

Edward G. Taj lor

WALTER,

James

Guardian Bldg.

Mcdonald &
company
Union Commerce Bldg.

TIIORNBURGH (THE W. C.) CO.
18 East 4th St. (2)
CI 260

ADVERTISEMENT

PRESCOTT & CO.

E. 4th St.

Cherry 0450

>;

ADVERTISEMENT

Schuite, Jr.

George F. Opdyke

(EDW. G.) & CO.
(2)

TA*LOR

1089

Cherry 0260

Clarence F. Davis

John A. Kruse

Edwin F. Ehrhardt

Daniel M. Hawkins

High St. (15)

CL 296

Adams 5191

TRADING SPECIALISTS IN

VERCOE & COMPANY

REAL ESTATE SECURITIES

Huntington Bank Bldg. (16)
CL 281

Adams 7131

Martin J. Long

Service)

(In

GOODBODY & CO.
Nat'l

City

Bldg.

Bank

SHASKAN & CO.

(14)

-Members—

Prospect 6677

New

York

Stock

int
Exchange

New

York

Curb

Exchange

George Huberty, Jr.
GRACE (ARTHUR

3262

Arthur V.
GREANY

L.

M.

Bldg. (14)

Bonds

•

7'..\

Commodities

-

Tel:

DIgby 4-4950

■'v:;'

'

'

Bell

Teletype NY

1-953

DEALERS IN

U. S. GOVERNMENTS

& CO.

(14)

.

FOREIGN

AND

AND

MUNICIPALS

CORPORATE BONDS

5228

Special and Secondary Offerings

Greany

C. W. Whitwell

Private Wires to Branch Offices and

GREEN, WOLFE & CO., INC.
N. B. C.

Bldg. (14)

Correspondents in Princi¬

pal Cities in the United States. Foreign connections in Europe.

■

Cherry 6035

E. F

HUTTON

Albert B. Green

& COMPANY

ESTABLISHED

Ira Haupt & Co.

1904

MEMBERS NEW YORK STOCK EXCHANGE

Robert L. Erb
MEMBERS

Union Commerce Bldg.

61

(14)

COMMODITY

TELETYPE

NY

Albuquerque
Pasadena

LEDOGAR-IIORNER COMPANY

•

•

Beverly Hills

Phoenix

•

AND OTHER PRINCIPAL EXCHANGES

EXCHANGES

WHITEHALL 4-2100

1-1675

CABLE

LOS ANGELES

Don W. Plasterer

CV 383

STOCK EXCHANGE AND OTHER

SECURITY AND

BROADWAY. NEW YORK 6

BELL SYSTEM

Prospect 2700

Commerce

NEW YORK

PRINCIPAL

HORNBLOWER & WEEKS

Union

Place, New York 5, N. Y.

Grace

(L. M.)

Fidelity Bldg.
Main

Stocks

V.) & CO.

Union Commerce
Main

40 Exchange

ADDRESS: TONHUTEF

SAN FRANCISCO
•

San Dleao

El Paso
•

Hollywood

San Jose

•

•

Santa Barbara

Long Beach
Santa Monica

Oakland
•

Tucson

MUNICIPALS

Bldg (14)

Cherry 3800

Norman V.

Cole

NEW JERSEY

ARKANSAS

ALABAMA

LOUISIANA

MISSISSIPPI

TENNESSEE

Clearance Facilities

GENERAL

MARKET

for

New York and Out

of Town

corporates

OVER-THE-COUNTER

brokers and dealers

RAILROAD BONDS

UTILITY BONDS

SHORT TERM BONDS
UTILITY PREFERRED STOCKS

Inquiries
sional

or

are

invited regarding

regular

Trust Company

use

of

of

occa¬

our facilities.

foreigns

North America

Securities Clearance Division

111

BROADWAY, NEW YORK 6, N. Y.

Teletype NY 1-1920

115

BArclay 7-1300

Broadway, New York 15

Complete Domestic and Foreign




Member

Federal

Deposit Insurance

Banking Facilities
Corporation

10 POST OFFICE

Telephone REctor 2-3100

SQUARE, BOSTON 9, MASS.

Telephone Hancock 3750

THE COMMERCIAL & FINANCIAL CHRONICLE

1090

National Security Traders

Association BOOSTERS
"

advertisement

(Continued from

C. A. Pettibone, Jr.

1089)

page

BAKER, SIMONDS & CO.

Ralph E. Smith
W.

McCABE, IIANIFEN AND

Buhl

I. Tucker

Paul W. Gorham

COMPANY

Cherry 4509

SUDLER

.

(AMOS C.)

First Nat'l Bank Bldg.

William

DN 490

SCANLAN

Horn

Edward T.

E. McCabe

(EARL M.)

(2)

A.

Guy G. Wedthoff

Keystone 0101

Paul Ilardey

(2)

Anics O. Sudier
Phillip J. Clark

Earl M. Scanlan

New Penobscot

Cherry 3140

M.

Everham

Marion

& CO.

Colorado Nat'l Bank Bldg.
DN 90
Main 3211

Claude G. Porter

E.

J.

Stanko

Edward

Frank

MeCARTY

CO.,

&

DE

DE

366

M.

Christiana Securities

P.

Bldg.

C.

(26)

Gilbert

Don

HASTINGS, H. RUSSELL

Randolph 8400

National Bank

V

Cadillac

Fehr

HOOD

(26)
Randolph 6842

-A*'"

A

Ford
DE

'A"

Bldg.

540

Bldg. (26)

Buhl

*

George A. McDowell

George J. Elder

(THE)

CORPORA¬

MILLER,

TION OF BOSTON
418

(26)

Penobscot

Cadillac

Cherry 6828

Bldg.

Analysis

upon request

Bernardi

(26)

John

Henry VanderVoort

Cherry

Francis L duPont&Co.
MEMBERS

YORK STOCK

NEW

SMITH

&

EXCHANGE

Gerald

NEW YORK 5, N.Y;

•

MORELAND

&

CO.

Penobscot Bldg. (26)
DE 75
Randolph 3855

LIVINGSTONE <S. R.) & CO.
Penobscot Bldg. (26)
336
Cadillac 4333

Paul

DE

I.

Moreland

Edmund F. Kristensen

J. Albert Mahoney

;

Pochelon

,

Byron L. Powell

George
George

„

FIRST OF MICHIGAN CORPO-

~

BOWLING GREEN 9-6000

Shannon

E. Miller

Julius
r

'

ONE WALL STREET

B.

Reginald MacArthur

4320

Myron D. Stein

1 COMPANY
Penobscot Bldg. (26)
DE 465
Cherry 5525
Harold R. Chapel

L. Kenower

Jones

& CO.

Penobscot Bldg. (26)

COM¬

Bldg. (26)
Randolph 3262

DE 475

(A. M.)

&

Penobscot

5340

George C. Marxer

CROUSE, BENNETT,

KENOWER

PANY

N. D. "Hump" Humphries

KIDDER

Bldg. (26)

C. Edwin Mercier

T. Hood

KEYSTONE

.

,

Cloud L.' Cray
P.

&

Cadillac 5752

Josph J. McFawn
Ray

Miller

mercier, Mcdowell

CO.

&

Jesse V. Worboys

Chapin

CRAY; McFAWN & CO.

Common and Preferred

(L. T.)

LeRoy

Howard F. Carr

F.

W.

-

;

.

(26)'
Randolph 5242 *

Penobscot Bldg.

Roy

Currie

William Moore

Buhl Bldg.

CARR, CHAP1N & CO.

Company

2815

S.

dolpiiyn

K. Watson

DE 529

478

Joseph F;
Harry A. McDonald

Stoepel

Ray Temple

'w

CO.

Bldg. (26).
Cherry 9565

E. Voorhies

INC.
Buhl

&

Penobscot

John Brabson

Ralph

(26)

McDONALD-MOORE

Howard Ilindes
Herman A. Kauhl

CAMPBELL,

Penobscot Bldg.

John B. Alcorn

Welch

Quirk

George C. Mavxer

Herbert L. Waller

L.

Buel

MARXER AND
COMPANY

Bldg. (26)

Wynn Wakeman

BUHL BUILDING

:

Bennett, Jr.

Howard L. Parker
Victor P. Dhooge

'

Meyer

GOODBODY & CO.

Pierce A. Hastings

& CO.

Edward A. Hahifen, Jr.

Milton A. Manley"

"

Ralph W. Simonds

Security Bldg.~(2)
DN 360

advertisement.

Campbell
W. S. Gilbreath, Jr.

Frank

Cadillac 3670

4

H.

Douglas

Clarence A.

Bldg. (26)

DE 189

advertisement

,

.

Detroit, Mich.

Robert D. Mannix

Denver, Col.

•

advertisement

advertisement

Thursday, September
6,1945

RATION

E. O'Brien
Hays

Robert

L.

Snell

1

O'DONNELL
MANLEY

Buhl Bldg. (26)
DE 292
Randolph 2055

(M. A.) & CO.

Buhl Bldg. (26)
DE 92
Randolph

(it.

C.)

COM¬

&

PANY

Penobscot

1890

Bldg. (26)
Cherry 7040

DE 443

Ray C. O'Donnell

Larry II. Dilworth
Frank

H.

Kemp

j

Bill J. Axtell

Mervin I. Gardner

BOND

■

BROKERAGE

PARCELLS

Underwriters—Distributors—Dealers

&

A.)

(CHARLES

COMPANY

Penobscot

Bldg. (26)
Randolph 5625

DE 206

SERVICE

John A. Daniels

I

Bcrtrand

tfur

for Banks, Brokers and Dealers

Trading Markets Maintained Through
Private Wire System connecting our 86 Branch Offices

Fort &

Griswold Sts.

Cadillac

RONEY

QUOTATIONS FURNISHED

Buhl

INQUIRIES INVITED

DE

Members Neto York Stock
Exchange
Members New York Curb

Merrill Lynch, Pierce, Fenner & Beane

Bldg (26)
Cherry

167

6700

Roney

,

.

\

■

...

70 PINE STREET

•

/...

Harold

G. Montgomery

Melvin

G.

Kingstrom

Robert Wallace

Principal Security Exchanges
''•**.
'

i).

Telephone DIgby 4-7800

C.

Warren T. Olson

Members New York Stock and other

New York 4

v

& CO.

John K. Roney

Exchange

30 Broad St.

^

8800

(WM. C.)

William

Hardy & Co.

Leppel

PENOBSCOT BLDG.

Active Nation-wide

SATTLEY

#u

INC.

& CO.,

(H. V.)

Hammond Bldg. (26)
DE 141
Cherry 6363

NEW YORK 5, N. Y.

Teletype NY 1-733

Hale V.
Murel

Chas

Sattley

J.
C.

Sancrant
Bechtcl

(In Service)
CO.

SHADER-WINCKLER
Penobscot

Bldg.

(26)

Cadillac 7680

Dealers

in

Bank and Insurance Stocks

Special Situations,

William
L.

G.

H.

Gordon

Luchtman

Richard Brand

Railroad

-

Public

Industrial Issues

Utility

SMITH, HAGUE & CO.
Penobscot
DE 427

Called Bonds & Pfd. Stocks

and

Hal H.

Larry
Short Term

Industrial Securities

f

Bldg. (26)
Cherry 5535

/

,

,

Smith, Jr.
Gareau

/

Securities

WATLING, LERCHEN & CO.
Ford

Trading Department, LOUIS A. GIBBS, Manager

DE

Bldg.

105

(26)

Randolph 5525

Bert F. Ludington

Laird, Bissell & Meeds
MEMBERS

Van Tuyl & Abbe

120

NEW

YORK

BROADWAY,

STOCK

NEW

YORK

5,

Fort Worth, Tex.
McCULLOCH,

EXCHANGE

N.

Y.

72 WALL
STREET
Telephone

NEW YORK 5
Telephone
HAnover

2-6622




Teletype
N.

Y.

1-1499

Wire

Systems:

BArclay 7-3S00-—Bell

Day,

Stoddard

Teletype NY

FT

WH 540

de

*

St.

Mich.

young, larson &
tornga

-

Co.

2-4737

Grand Rapids,

—-

-

&

Worth Nat'l Bank Bldg.

1-1248-49

&

Williams, Inc. - New Haven
Tifft
Bros.
Hartford - Springfield —- Schirmer, Atherton & Co. - Boston —
Lockwood, Peck & Co. - Baltimore — Hendricks & Eastwood
Philadelphia
White

BARRON

Ft.

Louis
.

G. R. Nat'l Bank Bldg.
GR 84

98261

(2)

^ *

~

(Continued

on

page

1091)

(2>

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

Volume 162

1091

BOOSTERS
ADVERTISEMENT

ADVERTISEMENT

INDIANAPOLIS BOND AND

(Continued from page 1090)
Young
; \

Herman Tcrnga

Market St.

129 E.

.

IP 298.

JUacNAUGHTON - GREENAWALT

912, Baltimore

KC 399

•

•

Market 432.1

John

;

SIIUMAKER,
INCORPORATED
V

RISER,

(2)
v ;

COIIN

Circle

Carl Hofman

IP

HONEY (WM. C.) & CO.
G. R. Natl Bank Bldg. (2)

494

'

:

FAIRMAN

1

Ave.

L.

KC

Market 2481

375

Earl

J. Riser

W.

-

Ave.

(6)

Victor 2195
Price

LIVINGSTONE & CO.

,

639

.

FEWEL

CO.

&

S.

(14)

Spring St.

Charles

Livingstone

R.

MAXWELL-MARSHALL

453 S.

Spring St. (13)
LA 456
Trinity 4191
George II. Earnest

'

■

Harold F. Beale

Trinity 4121

Richard O'Neil

& CO., INC.

(E. W.)

William Wright

Herbert C. Irish

*

ADVERTISEMENT

CO.

Ralph DeFoe;

Meyer

Baltimore

1004

&

Sprang St. (14)

LA 29 ;

Latshaw

PRICE

;

650 S.

(6)

Victor 6622

Theodore Wagner

&

Tower™ (4)

Julian

.

Edward

Edwin J. Wuensch

'

& CO,
\
Michigan Trust Bldg.
GR 466
9312T : \
'

(6)

ADVERTISEMENT

HARRIS, UPHAM & CO.

SHARE CORPORATION

Neil De
,

ADVERTISEMENT

647

CO.

&

S.

Spring St. (14)
201
Trinity 4911

LA

-

Scott

B.

Oliver

.

'

•

•

...

-

•

93277.

,

Melville

S.

J.

Fred

Cohn

f

LESTER

William J. Dyer

,

Arthur I. Webster

Shumaker

;

W. Frank O'Bryon

184

GR

.

94336,

.

.

,

.

.

.

INVESTMENT
•

Leonard A. White

Bldg.

•

V':-.

Los

Russell II. Goodrich

Pearl St.

Jacksonville, Fla.

(1)

7-3261

HF 464

PIERCE

v'

F. Eisele

George

Nat'l

Clyde C. Pierce

HO

(2)

Walter
Frank

Todd

(In

L.

,

Vandike 1071

1092)

securitie

Primary Markets in Bank & Insurance Stocks

I

I

A. Akin

Specialists in
BAN¬

&

K

NEW YORK TRUST

BANK OF NEW YORK

1

U. S. TRUST

Spring St. (14)
Trinity 3661

I

LA 999

STOCKS OF ALL CONNECTICUT INSURANCE
I

AND INDUSTRIAL COMFANIES.

City, Mo.

CASS

service)

LA

6432

Harrison

472

Robinson

Indianapolis, Ind.

Edward

ESTABLISHED

Spring St. (14)
LA 38
Trinity 0281

DOUGLASS

V

I

1865

510 S.

I

Members New York Stock

Exchange
leading exchanges

and other

James D. Cockburn

(6)

Victor 4900
Mader

K

Shipley

S.

650

Board of Trade Bldg.
KC 263

I

CROWELL, WEEDON & CO.

CHRISTOPHER (B. C.) & CO.

V

Norman

I

ASSOCIATES

Tucker 5151

25

Forest W.

Hay ward H. Hunter

Eldridge

(QUINCY)

523 W. 6th St. (14)

Rieger

F. Lyon

E.

W.

KC

Core

J.

Herman

Spring St. (14)

LA 23

629 S.
.

BAUM, BERNHEIMER CO.
1016 Baltimore Ave (6)

Preston 1276

13

639 S.

Thomas

•

S. Pierce

Kansas

V. Christie

B.

page

Maxfield E. Brown.

& CO.

Bank Bldg.

on

NING

Houston, Tex.
1st

(Continued

Angeles, Calif.

BOGARDUS, FROST

5-3680

Thomas

(B. Y.)

COiyP.
(1)

(CLYDE C.)

JK 181

Albert J. Middlebrook, Jr.

CHRISTIE

■

Barnett Nat'l Bank Bldg.

J. Depatie

Oscar

2121

AKIN-LAMBERT CO.

COBURN & MIDDLEBROOK
49

Madison

unlisted

>

20405

Hartford, Conn.

33

(N. Y. C.)

Victor 1421

SECURITIES

National Bank

LA

R. Wittich

(6)

Dwight Bldg.

COMPANY

Chester M. Kolkoski

Wilbur

S., Spring St. (14)

WAIILER, WHITE & COMPANY

Jackson, Mich.

JVHITE, NOBLE & COMPANY
Michigan Trust Bldg.- (2).
;

& CO.

621

(NELSON) & CO.

I

Telephone Digby

1 Wall Street. New York 5

Spring St. (13)

4-2525j

"

CITY

COR'PORA-

SECURITIES

TION

COMMERCE

(Bond Dept.)

Circle Tower (4)
IP 489
Lincoln 5535

10th

Cecil W. Weathers

Miss

&

Victor

LA

TRUST COMPANY

Walnut

Sts.

349

Madison

^ '

Clifford L. Hey

(6)

Robert Keane

2392

r

~

Private

-

Cable Address:

telephone to: Conning &

Bridgeport

Montreal

Detroit

Company and Ballard,

Thomas Euper.

-

and MUNICIPAL

Hartford, Conn.

j
,

,

Mclaughlin, baird & reuss

SECURITIES

Members New York Stock

Exchange

securities
Unlisted - Trading

department

BOND BROKERAGE SERVICE

called securities
Specializing in Railroad Securities

Laurence M. Marks & Co. ;

rights & scrip

NEW YORK 5

ONE WALL STREET

Exchange t

Members New York Stock

Curb Exchange (Associate)

New York

Telephone HAnover 2-135S
49 Wall

O0O

Street, New York 5, New

York
1-2155

Teletype—NY
Telephone HAnover 2-9500

PV-

Teletype N.Y. 1-344

V

Brokers and dealersin general
unlisted Bonds

and

*n

specializing * in

particular

stocks

and

WHEN-ISSUED" securities.
Dealers in

-OQO-

FARR

ArdenFarms Com. & Pfd.

CO.

&

Boston &

Members
New

Josephthal & Co.

New York

New

New

York stock

York

Chicago

BROKERS IN

Trade

Commodity Exchange, Inc.

RAW & REFINED

System Teletype

Congress St.
Tel.

Pacific Airmotive

SUGAR

Ernst & Company

SPECIALISTS

NY

1-319

IN SUGAR

SECURITIES

Quotations Upon Request

Boston 9, Mass.

MEMBERS
NEW

YORK

NEW YORK CURB

STOCK EXCHANGE

COMMODITY

Investment Bends and

Stocks

120

EXCHANGE,

INC.

231

Broadway

Telephone
and

Private

Correspondents

in

New
Wire

York
System

Principal




to

to

Cities

120 WALL

ST., NEW YORK 5,

Tel. HAnover 2-9612

Direct

So. La Salle St.

Chicago 4

New York 5
Boston

EXCHANGE

CHICAGO BOARD OP TRADE

CHICAGO STOCK EXCHANGE

Lafayette 4620

Bell System Teletype BS 360

Direct

f-

N. Y.

./ REctor 2-5000

19

\

Broadway

New York 5,

Bell

.

*i

Interstate Bakeries Com. & Pfd.

Exchange
of

Corporation

Dictaphone Corporation Common
International Ocean Telegraph

Exchange

Curb

Board

120

(Associate)

Coffee & Sugar Exchange
New. York Cotton Exchange

New York

members

Albany R. R. Common

Delta Air

York Stock Exchange

Curb Exchange

i
i

'■x :'

AMKO New York

Joel Middleton

7500

Emma M. Hall

INDUSTRIAL, PUBLIC UTILITY, RAILROAD

reorganization

Rutland

Burlington

I

private wires to Chicago, 111., Los
and

Birmingham,

Alabama

Angeles, Ccd.

■

advertisement

TURNER-POINDEXTER & CO.

(Continued from page 1091)
Spring St. (14)

650 S.

r:

FORNIA -

•

.

:

yv^.

St. (14) >£.■
17"Michigan 6611

LA

Donald

Joseph L. Ryons
Joseph F. Gallegos

S.

382'

ALMSTEDT BROTHERS

•.

.

Sam

Green

Jack

Alexander

(WILLIAM R.) CO.

STAATS
640 S.
i

;

John M. Burge

LS

BANKERS

Spring St. (14)

'.LA 13.. Trinity

R. Burkholder

(THE) BOND CO.,

INC.

Kentucky Home Life Bldg.
LS 186
Jackson 0226

4211

Robert D. Diehl

(2)

Holman R.

y
r

•

Wilson

y

^'v^'-

&

CO.,

Drinkard

Wm.

0171

"

O. Alden

MEMBERS N. Y. SECURITY

& Co.

415

(2)
* ";

61 BROADWAY, NEW

9-3565

■

Madison

at

Gordon

(2).

(1)

Maynard W. Rue4 ; ;
William T. Howard

<

Wagner

Russell Ebinger

First

Dunlap Wakefield

ME

Nashville, Tenn.

Sinclair

COMMERCE UNION BANK

(GORDON) & CO.
Natl Bank Bldg. (3)

292

.

Merrill M. Cohen

Crossett

E. F. Mitchell

MEEKS

:

& COMPANY
Rand Tower- (2)
MP 73
Atlantic 8141
(J. M.)

DAIN

NATIONAL BANK

Joe H. Davis

St.

Kermit B. Sorum

Second

Bldg. (2)

Oscar M. Bergman

5-3637

283

ME

H. F.

Tele. NY 1-1666

■

•

Atlantic 3475

163

MP

Smart

William
Tel. BOwling Green

FIRST (THE)

-

Wabash 4191

John W.

YORK 6, N. Y.

-.'.T." '
,

Northwestern Bank

Frank D. Schas

y

W. Jefferson

LS 292

;

.

Minneapolis, Minn.

5-3501

ME 88

SMART & WAGNER

DEALERS ASSOCIATION

"

>i
<

BULLINGTON-SCHAS & CO.
First Nat'l Bank Bldg. (3)

Clem P.vTheiscn

C. E. Unterberg

Riley

Charles F. Jacobson

Memphis, Tenn.

W. Market St.

Jackson

-

W. Thurman

Walter G. Mason

1

O'NEAL-ALDEN & CO., INC.
429

(2)
Daly 6500

Bldg.

Clarence E. Taylor

Joseph W. Parks
Dale F. Linch

National Radiator Co.

:

ALLISON-WILLIAMS CO.

Reimer

Berges

.

.

.

RILEY & COMPANY

Ml 260

_

Berwyn T. Moore
J.

English

L.

;

.

: >:

Milwaukee, Wis.

Edwin B. Horner

Oscar B.

Jackson 7346

-

■v

•

First Wisconsin Nat'l Bank

3075

Ludwell A. Strader

Bldg. (2)

COMPANY, INC.

7 George M. Corrigan

;

MASON,

&

&

3-2137

80

MM

Bldg.

LY 82

T.)

-.

Security Bldg. (32)
-

INC.
Law

INC.

Public National Bank & Trust Co.

,

Miami, Flau

CORRIGAN

Edward

HORNER

SCOTT,

H. Allan Watts

Marion E. Taylor

(1)

8-7744

^.

:

/ V \'

Lynchburg, Va.

(BERWYN

ME 99 >

-

Walter Trinkle

& CO.
235 S. 5th St. (2) ;
LS
96
Jackson 1101

LS 88

Jr.

*.

(W. L.)

MOORE

\

Madison Ave.

Jr

Trust Bldg.. (2)
6818
r
"

Wabash

Hugh Miller

LYONS

69

Louisville

Marion H. Cardwell

>

NATIONAL

BANK & TRUST CO.

;':> V(Bond Dept.)

v;"*;

WILSON-TRINKLE COv

Jackson 0181

J.

J.

v

Otto C. Ruthi

Andrew P. Gies

(2)
Wabash 3264

I

James G. Lancaster

SON
(2)

St.

W, Jefferson

419

•

fc6-

;

Henry Uhristman;

425 W. Market St.

81

;112 S. 5th St. (2)
Jackson 4331'.

-

IIILLIARD (J. J. B.) &

'

Mutual 5231

Sedley

PLANTERS

UNION

C.) &

WILLSON <JAMES
;

•

^Snnimerell 1

Louisville, Ky.

(14)

Spring St.

>
w

Jim Fetter

LS 284

PLEDGER & COMPANY, INC.
LA

E.

v

.

^Edward F. Goldsmith
"'K

'..

Elinore

BOYCE

Arcade (2)
Wabash 5331

Chester A. Eneas

^
Louden

Lewis

C.

E.

Mrs.

Spring St. (14) '
68v Trinity 5761 • A•

;

:

Howard D.

626 S.

623 S. Hope

639

LS 281

McNair

John D. Faison

>

WAGENSELLER & DURST,
INCORPORATED

'

LA

•

,

Willard P.

G. Gordon Meeks

Starks Bldg.

Wood Hannah
.

Clifford E. Poindexter

;

OF CALL

COMPANY

PACIFIC

STEIN BROS. &

Thomas Graham

,

Stephen C. Turner

;r -V
•

.

639 S. Spring St. (14)
LA 35
Madison 2266

advertisement
ATyVWRTTS1PX(rV>

V

^,,TT,nrr>Tr.TP**c-NT'r'

.

advertisement

H. W. Bohnert

Vandike 2201

LA 155

•SA. S. McOmber

•

,

(REVEL) & CO.

MILLER

•

advertisement

advertisement

,,

Association BOOSTERS

Traders

National Security

5-8258

.

-

400 Union St.

Paul

(3)

6-6101

NV 93
4

Frederick

O.

,

Stamps ;r

R.

James

1

SECURITIES

EQUITABLE

CORPORATION

CANADIAN SECURITIES

v

Broad Street
NEW YORK 4

Phone:
2-8770

Department

Partner in Charge Trading

]\y 1-1979

Saint John

Swan

American

London, England

NO 95

Cl

r

BROADWAY, NEW YORK 6, N. Y.

;

Securities

t

(12)

Magnolia 3575

R. Jeremy Glas

G.

Price

Crane

KINGSBURY &

.

Railroad

and Industrial

Bonds and Stocks.

Mortgage and Terminal Bonds

.Equipment Trust Securities

A. Lester Alvis

J.

Bank and Insurance Stocks

Wallace

NO

*

Underlying Public Utility Bonds

189-

Wm.

Charles

(In

'

YORK TELEPHONE

PHILADELPHIA

TELEPHONE

NEW YORK HANSEATIC CORPORATION

WHiteball 4-3344

Established

Rittenhouse 6161

1920

Capital Funds over $2,008,000

Magnolia 7211

1

Jack Kerrigan
J.

1

CO., INC.

Bldg. (12)

Perry Brown

W.

Morris

NEW

Kingsbury

326 Hibernia Bank

Foreign External and Internal Securities

'

(12)

Canal 1655 ;£

NO 382

NEWMAN, BROWN &
>

o:'"

^

ALVIS

Hibernia Bldg.

Public Utility—Railroad

v-

-

(N. Y. C.)

CRANE

&

NO 298

United States Government

(12)

Raymond 3329 .;..

.

Whitney Bldg.

COMPANY

& CO.f

(T. J.)

T. J. Feibleman
S. L. Feibleman

GLAS

Dealer in

(12)

Bank Bldg.

Carondelet Bldg.

'y:

.

&

La.

Raymond 9977

FEIBLEMAN

Toronto

Cornwall

•

FREEMAN

.

New Orleans,

NO 165

Ottawa

Kingston, Jamaica

6-0171

B.

D'ANTONI & CO.

MONTREAL
Moncton

194

Teletype:
J-

W. C. PITFIELD & COMPANY, LIMITED

Vancouver

NH

CO.

Stephen G. McKeon
Frank J. McDcrmott

MURRAY LERNER

Affiliated With

Halifax

209

(CHAS. W.) &
Church St. (7)

SCRANTON

Leslie

W. C. Pitfield & Co., Inc.

Conn.

New Haven,

Street, New York 5

HAnover 2-9780

Traded in American Funds

Hanauer

B.

Jack

(2)

Blvd.

Mitchell 2-4995

NK 370

Neiv York Stock Exchange

15 Broad

(J. B.) & CO.

Raymond

1180

Members New York Curb Exchange

Mining

;■

-

(3)

Pettey

HANAUER

Adler, Coleman & Co.

Industrial

Municipal

St.

6-7171

Newark, N. J.

Members

HAnover

190

Herbert

Public Utility

Government

,

Union

NV

STOCKS

BONDS

Corporation

322

Breaud, Jr.
Newman

*

-

Service)

SCHARFF & JONES>

Whitney Bldg. (12)
NO 180
Magnolia

INC.

:

..

1271

:.

James E. Roddy

WEIL & ARNOLD
Bell System Teletype—NY 1-2288-89
.*




120

New

Broadway i

York 5, N.

Y*.

....

Telephone: BArclay 7-5660

Teletype:

Canal

Bldg. (12)

NO 175

NY 1-584
-

•

Raymond 0711;

(Continued on page'

1093)

:

162 ' Number 4418

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

National

Security Traders Association BOOSTERS

ADVERTISEMENT

ADVERTISEMENT

Joseph H. Weil

NY

Wilson Arnold

II.

New

York, N.Y.

ACKER (JAMES H.) & CO.
Broad St.

(4)

George

E.

BOUCHER
39

COLEMAN & CO.
15 Broad St. (5)
'

ADLER,

Nelson

(J.B.)

Broadway

(WM. L.)

Broad

NY

St.

1-295

William

C.

ADVERTISEMENT

CO.

&

(4)

Hanover

2-2575

Brandis

:

BYFIELD
61

CO.

&

Broadway

65

(6)

Lacy

St.

William

76

(5)

30

1-2624

NY

Bowling Green 9-3530

Broad St.

1-973

Frank

Frank W. Aigeltinger

& JOHNSON

NY

(4)

Hanover

2-0660

1-1010

72

Wall

NY

(C. A.)

ALBERTS

70 Wall St.

BRUNS
20

Hanover 2-7025

NY 1-1843

Alberts

Chester A.

(II. G.)

(5)

1-2310

NY

& CO.

Pine

St.

&

CO.

St.

1-2178

Broadway

2-6000

1-2642

Wall

1

NY

(6)

:

St.

(5)

1-1073

Whitehall

4-5290

(In service)

D'ASSERN

CO.

&

20 Pine St. (5)
NY 1-983
Hanover 2-4562

Walter Mewing

II.

Whitehall 3-4794

(Continued

page

on

1094)

*

(BLAIR F.) & CO.

'

(5)

(on

Whitehall 3-1223

:

Whitehall 3-0550

duty)

war

George Dedrick

Henry G. Bruns

Richard Shipman

Edgar J. O'Leary
COMPANY

ALLEN &

St.

Broad

30

(4)

.

Hanover

1-1017

NY

2-2600

Larry Wren

S. Weinberg & Co.

Harry A. Michels

Blair

Frank

H.

Irving

Koerner

V>•'

'

60

MEMBERS

WALL

Allen

Herbert

Merritt

AMES
2

NY

St.

SECURITY

NEW

DEALERS

ASSN.

YORK

WHITEHALL

BELL TELETYPE

Coleman

(A. E.)

Wall

YO^K

TELEPHONE

F. William Harder

C.

NEW

STREET,

NY

5,

N.

Y.

3-7830

1-2763

& CO., INC.

(5)
Rector

1-1045 '

William S.;

Ridley

Render

2-7231
.

a

brokerage service

in all Unlisted Securities

AMOTT, BAKER & CO., INC.
150 Broadway (7)
NY 1-588
Barclay 7-2360

John T. Cusack

DER,

Dealers*

;....

John Miller
ARNIIOLD

for Banks and

..

S.

&

BLEICHROE

„

i

INC.

30 Broad St.

(4)

N. Y. 1-515

Whitehall 3-9200

HENRY B. BOLAND

Arthur Hatz
Fred V. Loeliger

MUNICIPAL

WILLIAM H. BOLAND

(F. B.)
2 Wall St. (5)

ASHPLANT
NY 1-69

STATE

RICHARD F. SAFFIN

CORPORATION

BONDS

New York State

& CO.

Rector 2-1545

ALL ISSUES

Edwin F. Peet

BACON, STEVENSON & CO.

Bought

39 Broadway

(6)
Digby 4-4100

NY 1-91

Frederick

W.

(W.

—

Sold

Quoted

—

MUNICIPALS

v

•f .>?***

Liidwig
Vi-

BANIGAN

Municipals

NEW JERSEY

Charles W. Goodeve

Jj

\ ■•If

Brokers

& CO.

50 Broadway (4)
NY 1-2864
Hanover 2-8380

Dealers

and

in

all

Corporate Issues

George D. Walsh

Boland, SafEin & Co

BEAR, STEARNS & CO.
1 Wall St.

NY

(5)

1-633

Established

Digby 4-8500

52 Wall St.

1-501

(5)

NEW YORK

30 Broad

WHITEHALL 3-3414

5, N. Y.

Hanover 2-8820

Co.

&

Street, New York 4, N. Y.

Telephone WHitehall 4-5770 ; 1

Bell System

Stanley C. Eaton
Joseph Hecht
Cornelius Lipsky

Gordon Graves

TELEPHONE

52 WILLIAM ST.

BENDIX, LUITWEILER & CO.
NY

e

1920

„

Teletype NY 1-17:-

,,:

Teletype—NY 1-535

1

Frank McGivney r

Edward Plotkin

Michael Cappa

benjamin,
1 Wall St.

hill & co.

WHOLESALE DISTRIBUTORS

UNDERWRITERS

(6)

Digby 4-0964
Willard S. Gourse

Essential Facts
''

"

r

r

'

'■

John J. Vogrin

on

New

DEALERS IN

birnbaum

& co.
60 Broad St.
(4)
NY 1-2230
Hanover 2-6790

Railroad

Public Utility

•

Industrial

•

'

'

*'M

{ "

r-

'

'

'

*

■

h

Jersey Municipals

included in

Gustave L. Birnbaum
Nahum Birnbaum

our

monthly publication

"The New Jersey Municipal Bond Market
A

Bonds and Stocks

copy

will be mailed regularly

upon

9}

request

BOLAND,

SAFFIN & CO.
52 William St.
(5) 1
NY 1-535 " Whitehall 3-3414

J. B. HANAUER & CO.
1180 Raymond Blvd., Newark, 2, N. J.

BOND

& GOODWIN INC.
63 Wall St.
(5)
NY 1-360
Whitehall 4-8060

Telephone

J-G-White 6 Company

Andrew R. Stevens, Jr.
Arthur C. Murphy (Boston)

2-9300

INCORPORATED

„

HAnover

37 WALL STREET

J.

bonn <w. t.) & co.
120
Broadway (5) v,
NY 1-886

Wesley

T.

'

,,i-

Cortlandt

In

Kirchofer &

7-0744
raleigh, n.
;




U

association

c,:.:

.

NEW YORK 5

.

,.

New York Phone REctor 2-0150

Teletype

Chicago Correspondents:;

NYI-1815

STRAUSS BROTHERS

1890

.

,

♦

Bonn

Lester F* Gannon

•

ESTABLISHED

Jtenry F. Griffin (Boston)

•

Telephone Mitchell 2-4995
belisystem

Board of Trade Bldg.

•

>.

;

•

with

Arnold, Inc.
charlotte, n. c.

,r ;

Joseph F. Guiton

Whitehall 3-9895

St.' (5)

Wall

NY

^

CRAIGMYLE, PINNEY & CO.
(JAMES D.)

COBURN & MIDDLEBROOK
1

(15)

Sullivan

Blair F. Claybaugh

(5)
,

Hanover

CLAYBAUGH

S. Bennett

of Nassau

corner

J.

•

Walter C. Kruge

(THE) NATT* BANK OF

Pine St.

Carey

James D. Cleland

L. Kux

CHASE

G.

Mitchell

NY 1-115

THE CITY OF NEW YORK

NY

John J. Farrell

R.

COMPANY

Whitehall 3-6644

CO.

&

(6)

BROWN, BENNETT

David

'

John B. Boucher

AIGELTINGER & CO.

Robert

CLELAND

Richard J. Murphy •*

ADVERTISEMENT

Edwin Jacobs

Wm.

Hanover 2-4357

2-9780

Hanover

25

Whitehall 3-9030

Robert J. J. Kelly

2-5872

Hanover

1-865

BURTON

William II. Gregory, Jr.
E. Michael
Growney
•

25

ADVERTISEMENT

BONNER & GREGORY
30 Pine St. (5)

(Continued from page 1092)

1093

I

Bell TWX

-

NK 370

Thursday, September 6, 1945

National Security
I

(C. E.) &

A. E.

V

I

•

120 Broadway

ij

r

NY

:b

(5)

Rector

1-2361

2-7634

Chester E. de Willers

;i

7

C. Single

Henry

30 Broad

St.-

63 Wall St.
..

GROUP, INC.

Wall St.

.1

NY

(5)

& CO.

(5)

1-1181

Bowling Green 9-6000

William

Frank

D.

Harold

Noke

*

40

120

St.

Whitehall 4-8161

'

(5)

v

Bowling Green 9-3100

(4)->,~

j

.-•>

j

-•

!

1-493

NY

NY
Leo

Bowling Green 9-4432
S. L.
j

»■

FIRST

DEALERS AND BROKERS

'

(5)

H.

'

70 Pine St.

'v.

•

.

•

}

i

>

v

t/

\

*

V

•

-

■

,

Wall St.

40
^ ft'-■

j' '

;■

■

1-2425

f,

'

ti^.'

1-2073

•

(5)
Whitehall 3-9060

FREDERIC H. HATCH & CO.
.

63 Wall

;INCORPORATED

,

Street

•

.

.

...,

.

New York 5,
Bell

/,

/

N. Y.

NY
System Teletype NY 1-897

P.

(6)

•-

Rector 2-3100

G.

Carrington, Jr.

HAY, FALES & CO.
71

Broadway (6).

James Cleaver

Theodore Wechsler
HELBIG

Orlando

NATIONAL

Bowling Green 9-702"?

(BARON G.)

60 Broad St.

BANK

& CO.

(4)

Hanover 2-8457

OF

Baron G. Helbig

YORK

7 Hanover

Square (5)

Whitehall

4-5420

NY

HENTZ

60

(II.) & CO.
St.

Beaver

1

(4)
J

1-999

NY

& CO.

Bowling Green 9-8420

(4)

1-17 : Whitehall

4-5770

John J. Meyers, Jr.

Allen F. Moore

}

(5)

Fred Fox

37 Wall St.

(5)

NY

Hanover 2-4850

1-1126

&V;|.

HERZFELD & STERN
30 Broad St."

GREENE AND COMPANY

Rector 2-7760

1-944

1-1920

William

CO.

& CO.

120 Broadway

Broadway

Milton F. Lewis

Barclay 7-0100

30 Broad St,

;

(P. F.)

CO.

&

Ill
NY

"

Alfred F. Tisch
FOX

Whitehall 4-2400

(IRA)

Harry J. Peiser

GRAVES (GORDON)

Frings,

Wm. D. O'Connor

1-897

NY 1-61

NEW

CO,

(5)

Thorns A. Larkin

Frank J.

&

*

HAUPT

Broadway (6)

GRACE

•

,

J. George

NY

& CO.

.

FITZGERALD & COMPANY

SINCE 1888

•:

,

c :
Hanover 2-7793
'

George A. Searight

NY
.

(5)

(FREDERIC H.)

63 Wall St.

Wechsler

1-672

.

INC.

John J. O'Mara

CORPORATION

FIRST COLONY
NY

J.

NY

2-2600. !

Rector

1-417

...

Over the Counter Securities

Arnold

115

Channell
Edward H^ Ladd, 3rd

py

Frank

GOODBODY &

(THE) BOSTON CORP.

Clifford

HATCH

Coldwater

J.

'/

Bowling'Green 9-5000

(6)

Isadore

Cook

NY 1-600

Hanover 2-8970

1-1203

Feibleman

100 Broadway
NY

-

Webster
J.

HARRIMAN RIPLEY &
CO., INC,
63 Wall St. (5)

>

(L. J.)

Broadway

F.

Rene

&

2-9650

GOLDWATER

2-9612

41 Broad St.

W.

(4)

St.

Kilmer

Hugh

-A,.

FEIBLEMAN (T. J.) & CO.

(5)

■■i

Broad

Hanover

Wall St.

Kenneth Roome

1

;

GOLDSCHMIDT, SAM'L

39

NY 1-752

Exchange Place (5)

NY 1-702

Broad

15

John II. Gertlcr

25

EASTMAN, DILLON & CO.

CORPORATION
i

-•

& CO.

FARR

Barrett

.

•»

(5)
Hanover 2-8333

1-926

NY

Gerald F. Monahan

Hanover

SECURITIES

(THE)

49 Wall St.

(JOSEPH) & CO.
Broadway (6)

•Whitehall 3-1417

Clifton B. Smith

DOMINION

Barysh

GERTLER, STEARNS
COMPANY

FAROLL
*29

NY 1-815

Curry

Thompson

CO.

30 Broad St. .(4)
NY 1-733 4 Digby. 4-7800

G. Patterson

Howard

j

Eisele

R.

Frederick

Barysh

Murray L.

Bowling Green 9-1420
A.

F.

HARDY &

V

Philip II. Ackert
James F." Colthup

(5)
Cortlandt 7-5600

1-1137

NY
Max

\

(FRANCIS I.)

du PONT

DISTRIBUTORS

3-0272

Kumm

William

J.

Hanover 2-6213

NY 1-266

Dunne

Frank

(4)

Joseph S. Nye

McCabe

S. Bartold

120 Broadway

(4) *

Whitehall

1-956

NY 1-2288

;

William

(6)
;
Whitehall 4-3344;

Broadway

k

ERNST & CO.

CO.

&

61

;

,

Matthew J.

NY

& CO., INC.

(R. S.)

(

John C. Calef

25 Broad St.

DICKSON

Fred W. Preller

John M. Macdonald

DUNNE

'

Charles F. Preller

ADVERTISEMENT

Irving A. Greene

COMPANY

FREEMAN &

Fred Barton

D.

Oxley

Norman

COMPANY

ADVERTISEMENT

ADVERTISEMENT

,

Saunders

F.

Walter

(Continued from page 1093)
de WILLERS

BOOSTERS

Traders Association

ADVERTISEMENT

ADVERTISEMENT

(4) '

'
2-8646

Hanover

1-1059

NY

Emanuel Koerner
HIRSCH & CO.
Broad St.

25

•NY

Maurice

(4)

TROSTER

HOIT, ROSE &

:■

-.

•

••■••••• RAILROAD

-

INDUSTRIAL'

F. H. ROLLER &

CO., INC.

Trinity Place (6)
NY 1-375
•' V/"
Bowling Green 9-7400:

WATER

L. Tatro

Edwin

Members New York Security Dealers Association

STOCKS and BONDS

HOLS APPLE
30 Pine St.

DEALERS

WHOLESALERS

—

—

TRADERS

1-221

NY

Charles

SITUATIONS SUITABLE FOR

HUFF, GEYER
67

New York 6, N.

Broadway

(5):
Whitehall 3-0782

1-2875

George
John

Y.

-

^

L. Collins

H.

R.

Butler
O.

Fred

Teletype NY 4-1026

BArday 7-0570

j WHiteh.ll 4-4970

St.

Wall

\

Wilbur Krisam

III

NEW FORK S

'"r

HECIIT

&

George Geyer

BUYERS OF BLOCKS OF SECURITIES

j

E.| Klein

John W. Flanigan

NY

70 PINE ST.

(5)
Digby 4-4960

.

RETAIL DISTRIBUTION

G. A. SAXTON & CO.. INC.

j

'

CO.

&

P. Gahan

John

ASSOCIATED GAS and ELECTRIC ISSUES

\

74

i Established 1925

"""■

-

Jr.

Meyer,

Julius D. Brown

Trading Markeis in
UTILITY

2-0600

Hanover

1-210

HUGHES

Teletypes 1-609 & 1-610

Cloyes

& TREAT

40 Wall St.
NY

I

Warren

* .r

(5)

1-1448

!

'
-

-

•

•

1

Bowling Green 9-4613
Hugh J. Devlin
HUNTER & CO.

We Offer

42 Broadway (4)
NY'1-110
Whitehall 4-2968

a

COMPREHENSIVE INVESTMENT

Wellington Hunter

AND

HUTTON
61

DEALER SERVICE

(E. F.)

COMPANY

&

Broadway (6)

NY

T

Whitehall 4-2100

1-1675

in

HUTTON

ALL

CLASSES

OF BONDS

AND

STOCKS

JOSEPH McMANUS & CO.

14

NY

including
PUBLIC

W.

UTILITY—RAILROAD—INDUSTRIAL

We Are

FOREIGN—MUNICIPAL

New York Curb Exchange

Particularly Adapted

Chicago

to Service Firms
With Retail Distribution

Your

Inquiries Solicited

T.

100 Broadway

D,

39

BROADWAY

DIgby 4-3122

\

YORK 6

Teletype
VNY

NY

Telephone




')

Brown;

St.

(5)

& CO.
-

Hanover

1-1262

2-0800

JOSEPHTHAL & CO.
120

1-1610

NY

Broadway (5)
1-319

Rector
Serlen

BROADWAY, NEW YORK 5, N. Y.

REctor 2-7760

;?//

(5)

(R. H.)

Lewis II.

120

'

V

7-6800

Howard

64 Wall

NEW

::V

SNYDER;

&

Cortlandt

Exchange

CO.

&

(5)

Rector 2-3300

Maddox, Jr.

JOHNSON

Telephone..

P. F. FOX & CO.

Stock

St.

1-560

INGALLS

'Members

(W. E.)

Wall

2-5000

^

.

.

v

JOYCE, KUEHNi.R & CO.
Teletypes

29

NY 1-944 & NY 1-945

NY
-

i

-

Broadway
1-2236

(Continued

(6)

Digby
on

4-5544

page:

1095)

:

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4418

162

Volume

1095

National Security Traders Association BOOSTERS
ADVERTISEMENT.

Bond Traders Club of

Portland, Oreg.

ADVERTISEMENT

Benj. II. VanKeegan
George V. Leone

i

NATIONAL

I

1 Wall St. (5)

:

NY

1-2155'

j

John F. McLaughlin

j
j.

Frank J. Brady
Alvin J. Delaire
Frank Kane

Edgar M. Adams

John G. Galbraith

John G.

Galbraith, John Galbraith

& Co.; Secretary-Treasurer: Pan
V. Bailey,,Foster & Marshall.

/

Maurice

(5)

Otto

1094)

William H. Joyce
Ilanns E. Kuehner

St.

1-1979

PIZZINI

NY

St.

1-1063

John

M.

NY

Thos.

J.

Frank A. Pa vis

& CO., INC.

REYNOLDS & CO.

(4)

i20 Broadway (5)

•

NY 1-635- Rector 2-8600

|

Edward I. Becker

•

James A. Donnelly,

Jr.

Joseph V. Farrell

G.

;

Conary, Jr.
ROBINSON

Broad

*

2-4410

W. Gurden Halsey

§5

Steindecker

f

.

Hanover

*

St.

(FREDERICK S.)

&

CO., INC.

(4)

52

Henry R. Schmitt

St.

William

NY 1-905

(5)

Hanover 2-1282

(Continued

on

page

1096)

,;

Broadway (5)
1-2860

Rector 2-7640

Homer

O'Connell

"

Stark

Dealers and Brokers in

Robert A. Torpie

O'KANE, JR. (JOHN J,) & CO.
42 Broadway (4)

Verian
&

(4)

PULIS, DOWLING & CO.

Hart

H.

Laver

J.

Joseph Janareli

Walter J. Murphy-

R.

John

Whitehall 4-8120
Dimpel

T.

B. Winthrop Pizzini

Wilfred

& CO.

Broadway (6)

QUINCEY (CHAS. E.) & CO.
25 Broad St. (4)

Hanover 2-6286

120

Mayer

NY 1-1919

Hanover 2-8770

(B. W.)

25 Broad

.

O'CONNELL & JANARELI

McGahan

;

.

Allen Broomhall

Chas. K. Marsico

Frank

<

.

Whitehall 4-1212

MITCHELL
page

Whitehall 4-6300

Broadway (5)
NX 1-584
Barclay 7-5660

LYNCH, PIERCE,

65

Ralph

Bowling Green 9-6400;

J. S. Duga

Eugene

(6)

(EDWARD A.)

!

Irving P. Grace

120

ADVERTISEMENT

(Continued from

(5)

1-2033

NEW YORK HANSEATIC CORP.

FENNER & BEANE

NY 1-1264

40 Wall St.

Harold F. Rees

McManus

St.

&

Digby 4-4933

Pflugfelder

Broad

30

NY

David Goldstein

Walter V. Kane

Pine

1-310

NY

Michael J. Heaney

70

BAMPTON

PURCELL

PITFIELD (W. C.) & CO., INC.

Bowling Green 9-1000

Broadway (6)
NY 1-1610
Digby 4-3122

MERRILL

Broadway

NY

Wm. H.

(15)

NEWBURGER, LOEB & CO.

39

Y.

CITY BANK

NY 1-8

McMANUS (JOSEPH) & CO.

Joseph

(THE)

OF NEW YORK
55 Wall St.

Hanover 2-1355

ADVERTISEMENT

.

RUST
61

Mclaughlin, baird & reuss

President: Edgar M. Adams, E. M.
Adams
&
Co.;
Vice-President:

PFLUGFELDER,

Louis E. Walker

Harold J. Pollack

!

|

ADVERTISEMENT

.

Capt. Graham W. Walker

COMPANY

N Y 1-1525
John

Irving L. Feltman

Harry D. Casper

,

J.

Railroad, Public Utility & Industrial

Digby 4-6320

120 Broadway (5)
NY 1-1227
Worth 2-4230

O'Kane, Jr.

Philip C. Kullman, Jr.

Bonds & Stocks

Cornelius B. Sheridan

JUNGER

(S. H.)

CO.

Alfred I. Abelow

40

Exchange Place (5)
NY 1-1779
Digby 4-4832
Samuel II. Junger

St.

MOORE
42

(5)

(FRANK C.)

BUREAU

Henry

J.

CO.

Keiper

46 Front St.

Rudolph W. Zimm

NY

1-1900

JACKSON

&

;

25 Broad St.

(4)

NY

Hanover

1-1600

Broadway (4)

1

2-5540

,

Ingalls & Snyder

Harry L. Arnold

NATIONAL QUOTATION

Whitehall 4-4950

WEBBER,

CURTIS

Whitehall 3-9784

keiper and zimm
30 Broad

PAINE,

Kenneth V. Leibert

Ernest A. Dahlgren

Members New York Stock Exchange

Ernest

Members Neto

N.

Robb

INCORPORATED

Gustav J. Grindel

(4)

George

Whitehall

3-4200

David

100 BROADWAY

Brooks
J.

York

!

Curb Exchange

NEW YORK 5, N.

Y*

Lewis

KIDDER (A. M.) & CO.
1

Wail St.

(5)

NY 1-1310

Digby 4-2525

We extend the

William C. Mueller, Jr.

Our

kidder, peakody & co.
17 Wall St.
NY 1-193
James

(5)

40

OVER-THE-COUNTER

"Special Situations"

TRADING

Department

F. Kelly

king & king

DEPARTMENT

Exchange Place (5)

NY 1-423

Martin

I,

our

••

Hanover 2-8900

,

complete facilities of

to

Hanover 2-2772

Banks, Brokers and Dealers

King

is maintained for the

accumu¬

lation

of

or

placement

blocks of Over

Samuel H. King

-

the

;

Counter

Orders executed

Casper Rogers
on

a

commission basis.

Compliments of

large

Bendix, Luitweiler & Co.

Stocks and Bonds.

kobbe, geariiart & co., inc.
45 Nassau St.

NY 1-576

Frederick

D. Gearhart,
George W. Hoffmann

Salkay

Frank H. Roller, Jr.
William G. Riley

37 Wall St., New

120

.

1-1248

Tel. HAnover 2-4850

Teletype Bids & Offerings at
TELETYPE—NY

our expense

1-1126

&

1127

meeds

&

Broadway (5)

NY

5, N.Y.

York Security Dealers Association

York 5, N. Y.

BELL SYSTEM

laird, bissell

New York

SfeetveonifiompaTw^
Members New

KOLLEPv (F. II.) & CO., INC.
Ill Broadway
(6)
NY 1-1026
Barclay 7-0570

,;v

52 Wall Street

Jr.

Earl Hooper
Zoltan

Members New York Stock Exchange

(5)

Rector 2-3600 5

7

Barclay 7-3500

L. A. Gibbs

W. T.

Schmidt

C.

Williams'i

W.

5

S. F. Beswick

lebentiial
135

Roggenburg

Broadway

NY 1-2272

&

C

& co.
Members New

(6)

York

Security Dealers; Association

Rector 2-1737

Brokers and Dealers

Louis S. Lebenthal

Leroy Klein

xuckiiurst
40

Exchange

NY 1-1825

RAILROAD BONDS

Frank C. Masterson & Co.

& co.

Place

(5)

Members New York Curb

Exchange

CORPORATE SECURITIES

Hanover 2-0270

Herbert Singer
Bob Mackie
Herbert Lax

fiti

.

-

'..«.■ x•'

64 Wall Street

Specializing in

Irving Wasserman
Gerald F. Kane
Jules Bean

New York 5,

All

N* Y.

marks (Laurence m.) & co.
49 Wall

St.

NY-1-344

Foreign Bonds & Stocks

»

A
A'*r
\ 1

FOREIGN BOND COUPONS

(5)
Hanover

•'»

FOREIGN BOND SCRIP

2-9500

•f
!>

.Charles M, Zingraf

masterson
64 Wall St.

NY

1-1140

%

(frank c.) & co.

29

BROADWAY

(5)
Hanover

2-9470

Frank C. Masterson;
Joseph C. Eagan




Telephone: WHitekall 3-3840

NEW
Bell

YORK

I

6

Teletype: NY 1-1928

FINANCIAL

THE COMMERCIAL &

Association BOOSTERS

National Security Traders
•

2

St.

Rector

;

Lloyd E. Lubetkin
Edward

John F.

ROGGENBURG & CO.

N Y

Howard R. Bouton

Carl

,

NY

1-490

INC.

Bertsch

H.

Fraser

Frank

,

LUBETKIN & CO.,

SELIGMAN,

Gurley

INC.

Kadell

(5)

7

Irving Gersten

Arthur V.

41

E. Mulligan

Broad St.

NY

George D. Doherty

Pine

1-592

(4)

(L. O.) & CO.

St.

,

William

:,777 '7;7'77;.

Irving Stein

William

T.

39

Digby 4-2370

60 Wall St.
NY

(HART) & CO.
William St. (5)

& co.

20 PINE STREET,

Teletype—NY 1-1843

Telephone—WHitehall 3-1223

72 Wall St.75)
7)
1-1499
Hanover 2-6622

.

v

E. Everett Van Tuyl

F.

Richard

Jr.

Abbe,

Hanover 2-9340

Charles

(4)

2-4300

Hanover

49 Wall St.

Wall

St.

& CO.

Rector 2-6800

(6)

Trinity Place

Hanover

1-376

NY

Broadway (5)

2-7900

CO.

(5)

Digby 4-6994
Albert H. Week

F. Bryan

Wall

60

St.

(5)
Whitehall 3-7830

NY 1-2763

2-2400

& CO.

(S.)

WEINBERG
74

'

Hanover

(ALBERT H.)

WECK
60

♦

(5)

1-911

NY

& CO.

(SPENCER)

1-5

NY

& IIICKEY

VILAS

(5) '

Broad St.

25

Eiger 7

(A. L.)

Unterberg

Greenberg

NY

TROSTER, CURRIE & SUMMERS

120

'\

VAN TUYL & ABBE

;7

;

Joseph P. Simmons
STAMM

NEW YORK 5

E.

Thomas

(5)

1-2260

TRASK

2-0980

Hanover

Win. Hart Smith

h. g. bruns

Clarence

Charles J. Thornton

SMITH

William

V

THORNTON & CO.

Bernard Weissman

NY" 1-395

(C. E.) & CO.

Broadway (6)

NY 1-1666

II. J. Lacy

Nathan A. Krumholz

52

Schlosser

Bowling Green 9-3565

S. Courtney

Harry

Sidney A. Siegel

BONDS and STOCKS

61

*/

Hanover 2-8660

NY 1-325

(6)

Sandbach

J.

UNTERBERG

STUBNER & CO.

Broadway 16)

NY 1-1942

Gustave

Hanover 2-3970

60 Wall St.

CORPO¬

Hanover 2-4800

A.

James

Frankel

V.

•,

,

SECURITIES

NY 1-2086

Elbridge H. Smith

Erickson

SIEGEL & CO.

Industrial,-Public Utility and Railroad

(4)

65 Broadway

7

Service)

1-1582

NY

(5)
Whitehall 3-5300

NY 1-1052

DEALERS and BROKERS in

(15)s-

.

STRYKER & BROWN
50 Broad St. (4)

SHIELDS & COMPANY
44 Wall St.

(In

a

NORTH

RATION

Donadio '

F.

OF

UNDERWRITERS TRUST CO.

UNION

Burian

'

COMPANY

50 Broadway

Robert Strauss

Whitehall 4-7970

Lee Sherman

.

(In Service)

(5)

NY 1-2218

Hanover 2-2100

-7'yv

Barclay 7-1300

Digby 4-8640

NY 1-832

Abraham Strauss

30

-' 7>

115 Broadway

*

STRAUSS BROS.
32 Broadway (4)

Bowling Green 9-0040

SHERMAN

7'

Brennan

Digby 4-3883

Joseph

George W. Kirtland
Allan

Herman Wallach

NY 1-1862

Barbier

Leslie

;

44 Wall St.

Warner

Walter R. Johnson

Whitehall 4-4860

TRUST

Charles E. Stoltz

SIIEPARD, SCOTT & CO.

W.

W.

Schrank

7

AMERICA

Hanover 2-1762

1-2532

NY

Stolle

Frank

Digby 4-4950

1-953

Joseph

Whitehall 4-4970

1-609

Arthur

ROLLINS (E. H V& SONS,
40
Wall St.
-5)

NY

CO., INC.

/,

Oliver J. Troster
-

Hunt *■

STOLTZ (C. E.) CO.
25 Broad St. 14)

Place (5)

40 Exchange

(5),—

Pine St.

70

Rector 2-3860

1-1061

NY

SHASKAN & CO.

Sammon

SAXTON (G. A.) &

Roggenburg
Stanley L. Roggenburg
F.

>

W. Russell

fy

James I.

STARKWEATHER & CO.
i
111 Broadway (6)
. •;
George V.

29

Harry

advertisement

y

>

Bowling Green 9-3575

-

Broadway (6)
NY 1-1928
Whitehall 3-3840

& CO.

(6)

7 NY 1-1388

Edgar K. Sheppard

"

(J. F.)

SAMMON

(Continued from page 1095)
Herbert T. Redmond

•

£.»y*y 7'v ;

A.i Frankel

Adrian

advertisement

;

<

advertisement

advertisement

advertisement

Thursday, September 6,1945

CHRONICLE

Samuel Weinberg

W7illis M. Summers

Walter Wohleking

Milton

.

CO.

WERTHEIM &

Currie, Jr.

James

Harry Rosenbaum

120 Broadway

Pinkus y "

(5)

Rector 2-2300

1-1693

NY

Stanley M. Waldron
Edwin

KING & KING

Wall

37

Markham

J.

St.

(5)
Hanover 2-9300

NY 1-1815

;:yEstablished 1920

O'CONNELL & JANARELI

•'

Members

New

120 BROADWAY, NEW

'-^7

■■

YORK 5

York

National

Security

Association

of

WIEN
Association

Dealers

Securities

Dealers,

NY 1-1397

UAL

ACT IVE
★

•

★

Joseph J. Lann

Trading Markets in All
Oyer-the-Counter Issues

Terminal Bonds

—

Guaranteed

Stocks

Enterprise

on

any

yy

Enterprise 6170

r

Enterprise 4000

>

PITTSBURGH
WZ

10808

WOOD, GUNDY & CO., INC.
14 Wall St. (5)
NY 1-920
Cortlandt 7-6080

Enterprise 6170

DETROIT

CINCINNATI

Industrial Stocks

—

SYRACUSE

ROCHESTER

7

Allison W. Marsland

f

Enterprise 6089

ST. LOUIS

Norfolk, Va.
AYCOCK & COMPANY

Enterprise 8800

EXCHANGE

PLACE

Telephone: HAnover 2-2772

(10)

Royster Bldg.

2-6301

NF 282

40

2-4994

John Witkowski

Unlisted Security

OUT-OF-TOWN 'PHONES

6109

CO.

&

(4)

Hanover

NY 1-1211

BUFFALO

Railroad

St.

Broad

25

Distributor inquiries

(JOHN)

WITKOWSKI

★

We invite Out-of-Town Dealer and

Railroad Mortgage &

CO.

&

Place (5)
Hanover 2-8780

Melville S. Wien

Teletype NY 1-2860

REctor 3-7640

S.)

(M.

40 Exchange

Inc.

Foreign Exchange Brokers Association of N. Y.

Telephone

& CO., INC.

(J. G.)

WHITE

NEW YORK 5, N. Y.

Henry Isaacs

Bell Teletype: NY 1-423

Orlando, Fla.
(THE)

CRUMMER

COMPANY,

INC.
1st Nat'l Bank Bldg.
OR

2-3101

81

& CO.
Bldg.

LEEDY, WHEELER
Florida Bank

DOMESTIC

„„d

10

OR

FOREIGN

5161

Loomis

TRADING MARKETS

C.

;»>■

Leedy

F. Monroe Alleman

Philadelphia, Pa.

SECURITIES

BARNES & LOFLAND

(2)

1420 Chestnut St.
*

Rittenhouse

347

PH

Walter

K.

BATTLES
1528

PH
E.

m.

s. wien &co.

Luckhurst

ESTABLISHED 1919
Members

New

York

40 EXCHANGE
Telephone HAnover 2-8780




Security

Dealers

Association

60 Broad

PLACE, NEW YORK 5
Teletype NY

&

Co.

Members N. Y. Security Dealers' Assn.

1-1397

Street

New York 4, N. Y.

&

St.

9500

Service

(W. II.)

& CO.,

1500 Walnut St

PH 16

INC.

(2)

Pennypacker

Arnold

BELL

COMPANY,

Walnut
184

0730

Barnes

INC.

.(2)

Pennypacker 8328

Benjamin
Edward J.

A.

Brooks \

Caughlin

Randolph C. Fernon
Joseph E. Morley

(Continued

on

page

1097)

•

Volume

Number 4418

162

THE COMMERCIAL & FINANCIAL
CHRONICLE

1097

Security Traders Association BOOSTERS
ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

„

(Continued from page 1096)
bioren
PH

574

M.

PH

(2)

L.

1420 Walnut St.

PH

St.

(3)
Pennypacker

30

F.

Harold

Scattergood

Lincoln-Liberty Bldg.
Locust

Walnut

1529

265

St.

(2)

F.

&

LILLEY &

PH

366

MILLER
123

2700

Wm.

Rittenhouse 2324

J. McAtee

Albert

II.

(E. W. & R. C.)

1518
PH

PH 73

Rittenhouse 3717

J.

(E. W.)

Locust
PH

at

430

John

(2)
Kingsley 4000

,

M.

Flynn, 2nd
Charles C. Bradly

1517

PH

Bldg.

1419

CO.,

PH
Wm.

(2)

306

Alfred

TOWNSEND,

Locust

McC.

Edward

.

"

y

YARNALL

1528

Zuber

•

&

••

:..v

••.' /;

7

v.-r' "•*' '

CO.

Walnut St.

(2)
Pennypacker 0300

PH 22

Harry B. Snyder
Herbert V. B. Gallagher

1716

Samuel K. Kennedy
Robert L. Clements

Charles A. Taggart
W. Fred Endy

YORK (WARREN W.)

& CO.

Land

WAPLES

(RUFUS) & CO.

1510 Chestnut St.
PH 492.

Title Bldg. (10)
PH 556 Rittenhouse 9393

(2)
Paul C.

Locust 4110

Lawrence J. Colfer

Fredericks, Jr.

(Continued

on

page

1098)

St.' (9)

Kingsley 0650

SHERIDAN, BOGAN CO.
Walnut St.

CHAS. E. QuiNCEY & Co.

(3)

ESTABLISHED 1887

William Ward,

3rd

MEMBERS
NEW

Walter R. Moyer

YORK

STOCK EXCHANGE

NEW

YORK

CLRB EXCHANGE

.

CO.

(2)
Pennypacker 8383

PH 25

6200

NEW

STREET

YORK 4

Joseph Markman

Schreiner
SNYDER
Stock

Ciszek
S.

(E. W.)

25 BROAD

Lewis Tower

(2)

Blaustein

E. Walton

CROUTER & BODINE

Bldg.

"

Yeatman

Kingsley

Pennypacker 0100

S. Broad

1616

Lescure

Walnut St.

Charles J. Campbell

Packard

Walter B. McLear

1343

Kingsley 4400

NEWBURGER & IIANO
&

Samuel

&

123

SMITH

1333

DeHAVEN

CO., INC.

John T. Pairman

(W. II.) SON & CO.

Alfred W. Tryder

■

Packard

H.

WOODCOCK, McLEAR & CO.
I 1518 Walnut St. (2)
PH 197 Pennypacker 8916

(2)

Kingsley

Campbell

William J. McCullen

Charles W. Collom
William Raffel -/? ■
•

Locust

268

PH 538

St. (2)
-Pennypacker 1234

James

&

A.

SCHMIDT, POOLE & CO.

1477

Locust
44

Marguerite

Campbell

St.

(6)

B. Newton Barber

(2)

Frederick S. Fischer

NEWBOLD'S

COLLOM, RAFFEL & CO.
Fidelity-Phila. Tr. Bldg. (9)
PH 37
Pennypacker 7930

INC."

.

Harold N. Nash

St.

DAWKINS, WATERS

PH

(H. N.) & CO.
Locust

325 Chestnut St.

Ergood, Jr.

16th

G.

'

Lombard 7600 ,v

TAGGART (CHARLES A.) & CO.
1500 Walnut St. (2)

Davis

Harry S. Maneely

257

242

(2)

WOOD, JR. (A. C.) & CO.

John E. Nash

:

& CO.

16th

S.

PH

PH

Knapp

Lightcap

(GEO. E.)

Exchange

220

&

CO.

Bldg.

Rittenhouse

(2)

0308

Thomas J. Love

(2)

Locust 6770

Joseph O. Barnes
DICK

(LEWIS C.)

1420
PH

Walnut St.
205

Trading Markets In

CO.

(2)

RAILROADS

Pennypacker 1787

Alfred M. Dick
Hilda Williams

DOLPHIN &

PUBLIC UTILITIES

L. D. SHERMAN 6• CO.

CO.

INDUSTRIALS

Fidelity-Phila. Tr. Bldg. (9)
PH 299
Pennypacker 4646

30 PINE ST., N. Y. C.

Leo M. Dolphin
Walter H. Schumann

113

WHitehall 4-7970

HUDSON

ST.

JERSEY CITY 2, N. J.

Freeman H. Grant

DOUGHERTY (A. WEBSTER)

&

Bell

^/it$(jevuld (Sl (Company

System Teletype—NY 1-2218

40 Wall

COMPANY
1421
PH

Chestnut St. (2)
70
Rittenhouse 2580

Elwood

s.

Bell

Teletype—NY

Direct

Robinson

Street, New York 5
Telephone—Whitehall

1-2073

Wire

to

DRAPER

SEARS

&

3-9060

CO., BOSTON

George II. Wyckoff
FITCH (E.
M.)

& CO., INC.
S. E. Cor. 15th &
Locust Sts.(2)

Pennypacker

8700

Francis M. Roberts, Jr.

fogarty,

R. H. Johnson & Co.

frank j.

Commercial Trust Bldg.

PH 426

(2)

SUNSTEIN & CO.

213 S. Broad St.
PH 591

(7)

Pennypacker 0534

Bernard H. Tobias

Mam,
1421
PH

Chestnut
292

St.

Locust

S.

15th

428

120 BROADWAY
Tel. WOrth 2-4230

St.

&

•

NEW YORK 5. N. Y.
Boll Teletype N.Y. 1-1227

64 WALL STREET

NEW YORK 5

^

& TURNER, INC.

*. Wm.
Goodman

Springfield

Baltimore

SECURITIES
are

specialists in the retail investment field.

retail

salesmen

in

10

states

enable

us

distribute, among real investors, large blocks
of
attractively
situated
bonds
and
stocks.

..




Wilkes Barre

Woonsocket

to

HECKER & CO.
Liberty Trust Bldg. (7)
♦

Buffalo

Pittsburgh

Troy

Dallas

Our

Spruce 7200

Philadelphia

Washington, D. C.

OVER-THE-COUNTER
We

6200

T. Allen

Boston

Albany
Syracuse

(2)

Walnut St. (2)

Rittenhouse

*

CO.

Pennypacker 5360

Raymond

INVESTMENT SECURITIES

(2)

1100

Prank A. Kates

H^PER
1411

ShycA
Qaltinuyu.
&XjcAmzoji

CjflsLrn&aijb

hALL, TATTERSALL
225

Mitchell & Compiuj

parsons & co.

Wallace H. Ranyan
Wm. F. Mills

PH

Established 1927

Rittenhouse 0172

GEPVSTLEY,

&

Robert L. Whittaker

&

St.

Charles L. Waliingford
Edward J. Jennings

PH

CLARK

CLOSE

Henry B. Warner

Chestnut St.

220

Pope

(9)
Pennypacker 7400

1421

Willis

J.

L.)

OTtourke

Laird

Russell M.

Ethan

(E. H.) & SONS, INC.
1528 Walnut St. (2)

123 S. Broad St.

NASH

Gentry Daggy

A1

J.

J.

(9)

Russell W. Schaffer

MONTGOMERY, SCOTT & CO.

Exchange Bldg. (2)

63

Ruckdeschel

ROLLINS

Fenstermacker

Stock

& CO.

(2)
Pennypacker 2800

Edmund

Elwood W. Miller

(It. M.) AND COM¬
PANY, INCORPORATED

Locust

1420 Walnut St.

Michael J. Rudolph
Allan Foard

Robert

KERNER, INC.

& CO.

(9)
Pennypacker 1570

K.

(ROBERT

CO.

Kingsley 2963

William Z. Suplee

RAMBO, KEEN,

George S. Compton

BYLLESBY

S. Broad St.

I

Mosley

SUPLEE, YEATMAN

Fred C. Phillis

Jr.

R. Conover Miller

J. Nichols

Jr.

Kingsley 3311

S. Broad St.

PH 84

Kling
George s. Burgess

123

Lilley,

3HERRERD

Edward W.

James

Phillips,

(9)

L. Wister Randolph
John R. Hunt

■

J. Phillips
Service)

(In

Bldg. (2)

-

(2)
Pennypacker

4

Heffelfinger

K.

St.

WIIITTAKER

Pennypacker 7330

Thomas F.

Edward

CO.

Packard

Walnut St.

1500

PH

(7)

6226

William
BUTCHER

L.

Samuel

Broad

Frank

ADVERTISEMENT

CO., INC.

Victor

John

Spruce 7000

RAKESTRAW, BETZ

Weller

Walter D. Fixter

Harry

4488

Almon L. Hutchinson
John

222

(1)

S.

PH 296
R.

Chestnut Sts.

(SAMUEL K.) & CO.
Packard Bldg. (2)
PH 375
Rittenhouse 1700

Norman A. Lafferty

Rittenhouse

&

PHILLIPS

LAIRD, BISSELL & MEEDS

BUCKLEY BROTHERS

123
i

L. Keyser

(2)

Pennypacker 4075

Joseph A. McNamee

J. Fred Underwood

PH

J.

John Gibson, Jr.

8200

ON

ANNUITIES
15th

HOPPER, SOLIDAY & CO.
PH 593

STROUD &

LIVES & GRANTING

PH

Krug

Whitley

Walnut

3600

Richard W. Howard

BOENNING & CO.
1606

FOR INSURANCES

(9)
Pennypacker

39

ADVERTISEMENT

PENNSYLVANIA COMPANY

& CO.

John G. Hopkins

Doits

Thomas B.
Frank

St.

Pennypacker 9400

Russell

(JOHN G.)

123 S. Broad St.

co.

&

Walnut

1508

HOPKINS

.

•

Association BOOSTERS

National Security Traders
INC.

Pittsburgh, Pa.

I

■■

SL 46

Garfield 2113

Grant Bldg. (19)
PG 482 Atlantic 0881

John F. Zaegel

.;£j

"'1

Community Nat'l
Bldg. (14)

:

Chestnut 6111
,

Emmet J. Brennaii

Bank

'

I:

BANKERS

BOND

?

407 North 8th St. (1)

SL 144 Garfield 0727

CO.

W. Edwards

Chapin S. Newhard

,

B. L. Schlueter
Richard J.

E.

Olive St.

Ray C. Bond

Jos.

St.

i

SL

387

I

'

Wm.

Garfield 0225

i

Gordon

Scherck

'

Henry J. Riehter

Stix Friedman

Dempsey

William H. Hartnett

|

J. II. Heller

:

320 N. Fourth St.

SL

i

THE.COUNTER

67

Central

;

R.

408 Olive St.

i

Main 0634

i

(2)

Joseph F. Hahn
James B. Patke
E. K. Hagemann

Elmer B. Klein

Edward Holstein

Edward Havertick

Roy W. Jordan

John Isaacs

SIMON (I. M.)
315

& CO.

Mississippi Valley Tr. Bldg. (1)

1

Albert E. Beyer

Julian M. White

George M. White

Rudolph Rubirt

Theodore C. Honig

Elvin K. Popper

Max

Michael J. Sestric

Hiram Neuwoehner

METROPOLITAN ST. LOUIS CO.
718 Locust St.

FRANK C. MOORE
42 Broadway, New York
i-.:;

John B. McHugh

CO.

i

NEWHARD, COOK & CO.

4, N. Y.

Telephone WHITEHALL 3-9784-5-6

-

!

4th & Olive Sts.

Teletype NY 1-2628

SL

152

Herbert

D.

SL 392

Garfield

Louis J.

Nicolaus

(2)

WIBBING

1980

John J. Niemoeller
j

(2)

Central

314 N. Broadway

5585

*

(O. H.)

& CO.

319

North Fourth St.

SL

158

Central

(2)

8880

Russell Gooding

Bert H. Horning
E. Wm. Darmstatter

San Antonio,

Herman Brocksmith

Condie, Jr.

Kaplan

Walter C. Engman

STIFEL, NICOLAUS & CO., INC.

(1)

Central 8250

SL 499

Central 0282

SL 477

(2)

Central 3350

Louis Barklage

(2)

COMPANY

WHITE &

N. 4th St.

SL 288

Boatmen's Bank Bldg.
SL 469 Central 5730

Clarence J. Maender

^

(2)

Mel M. Taylor

8116

j •"

Rudolph Graf

Harris

i

AlcCOUKTNEY-BRECKENRIDGE
j

SECURITIES

(1)

Central 0838

SL 84

SEMPLE, JACOBS & CO., INC.

& CO.

^ 3

(G. II.) & CO.

Locust St.

503

Charles W. Halm

Irwin

Robert C. Lesser
i

II. Frahm

Herbert

WALKER

(2)

SL 456

Morris M. Moss

•1.

-

Elmer F. Barkau

Robert H. Matthews

^

Garfield 5258

HARVEY, KLEIN & CO., INC.

OVER

Garfield J. Taussig

S. Fischer i

Landreth Bldg.

(1) "

Charles St.

(1)

Garfield 1721

SL 62

Tenenbaum

SCHERCK, RICIITER COMPANY

!

Timothy F.

(2)
Central 9626

Harry

•

Clarence F. Blewer

i

506 Olive St.

Landreth Bldg.

Paul E. Peltason

Newell

FRIEDMAN, BROKAW &
i "
SAMISII

R. Emmet Byrne

Herman J. Zinger

(2)

Central 4045

Edwin R. Waldemer

Steube

Richard H. Walsh

SL 486

B. Tilghman

711

(1)

Garfield 0514

TAUSSIG, DAY & CO., INC.
1

G. Redman

'

Olive St.

509

SL 80

PELTASON, TENENBAUM CO.

!

418

STIX & CO.

'

Robert A. Walsh
<

Andrew S. Mills

|

Hamilton

Frank

j A.

"

Jerome F. Tegeler

SECURI¬

&

&

I

Mo.

CO.

TIES

Central 4744

Presley

W.

DEMPSEY TEGELER

St. Louis,

SL 475

James

29119
Clarence J. Nephler, Jr.

,

Joshua Harvey

J. Reid Kinseila

Eugene A. Parmenter

Robert M. Guion

i

F. Howard White

Dempsey

I

SONS

(1)

409 N. 8th St.

BRENNAN, KINSELLA & CO.
i
418 Olive St, (2)

(W. H.) COMPANY

PROTIVA

Central 7250

EDWARDS (A. G.) &

William R. Foley

Pontiac, Mich.

(4.)

Joseph G. Petersen

!

Dunbar B. Abell

*

Dumont G.

1811.South Broadway

(2)

Fred S. Kelly

j Henry M. Cook

INC.

Boatmen's Bank Bldg.

REED, LEAR & CO.

& CO.,

ECKHARDT-PETERSEN

BR AMMAN - SCHMIDT-BUSCH,

(Continued from page 1097)

i

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Thursday, September 6,1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

1098

Tex.

RUSS & COMPANY
it: a

South Texas Bank Bldg.

LISTED

Ki

SECURITIES

€I

San

traded advantageously

f.-r!

Dealers in

Francisco, Calif.

FIRST CALIFORNIA CO.,

»

BRITISH SECURITIES

f

John F. Sullivan
Albert A. Hewitt

j

I

ESTABLISHED

1920

Members National Association

John F. Egan
Warren Hansen

of Securities Dealers, Inc.

20

S.

Broadway, Yonkers 2, N. Y.

New York City—MArble 7-9667

YOnkers

Walter F. Schag

J

SERVING DEALERS FROM COAST TO COAST

FOREIGN

Donald

K.

E.

A. O. VAN SUETENDAEL & CO.
AND

Yukon 1551.

SF 431

i

i

DOMESTIC

3-0355

KAISER & CO.

Bell Teletype—Yonkers 2318

Pvuss Bldg.

MINING ISSUES

'

SF 29

Russ

Members

New

York

TWO RECTOR

Exbrook 7900

Thomas W. Price

7% Preferred Stock

STREET, NEW YORK

HOwling Green 9-3575

Bldg. (4)

SF 370

Central & Southwest Utilities Co.

Security Dealers Association

Foley

(E. I£.) & SONS
INCORPORATED

ROLLINS

We maintain active markets in

SAMMON & CO.

(4)

Douglas 0773

Edwin R.

J. F.

INC.

St. (20)

300 Montgomery

:?

(5)

Fannin 4324

SA 23

SUTRO & CO.

O

407 Montgomery

Minnesota & Ontario Paper Co.

Teletype NY 1-1388

SF

308

(4)

St.

0900

Exbrook

Tony Bottari

Common Stock

! I
"3

Seattle, Washw
FOSTER

A

THORNTON & CO.
60 Wall

UNDERWRITERS

&

MARSHALL

1411 Fourth Ave. Bldg.
SE 145

Albert O. Foster

Street, New York

(1)

Seneca 0680
,

Sidney J. Sanders

HAnover 2-9340

DISTRIBUTORS

GRANDE & CO.,

INC.

Hoge Bldg. (4)
SE 362

TRADERS

Terry

HARTLEY ROGERS &

Dealers In

ANALYSTS

Main 6832

Thompson

COMPANY
1411 Fourth Avenue

Over -The

-

Over-The-Counter

Counter Securities

SE 168

Bldg. (1)

Seneca 2000

Jack E. Jones

Securities

PACIFIC

NORTHWEST

COMPANY 7

Exchange Bldg. (14)
w
■

SE

187

2611

Seneca

Josef C. Phillips

Robert B. Moore

C. E.

HUGHES & TREAT
40

Telephone
BO

#-*013

Wall

New York




Street

City 5, N. Y.

Shreveport, La.

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

Teletype
NY

1-1448

'

Telephone—HAnover 2-1762

BARROW, LEARY & CO.
515

Teletype—NY 1-2532
r

Market

SH 83

St.

(80)

2-8351

.

.

.(Continued

on

page

1099)

-

Volume

162

Number 4418

THE

The Future oi Postal
savings

small

page

1078)

account®

uxe

'

in-

t'erest. rate is unimportant, being
overshadowed by considerations
of

convenience.^. • 7.7;
- f
In spite of these logical advan¬
tages pf the' commercial bank j it
appears that the, postal. savings
system •• could entice many depos¬
itors "away if a careful "compari¬

(

son* werei made.-

that

able

most

It

seems

families

prob¬

do

not

weigh airth^ aitdrnatiyfes,^or per¬
haps are" not - even aware of the
precise '• differences. "Traditional
household behavior

patterns may
account for the fact that the shift
to postal savings has not

yet

come

landslide.

a

its historical

conception the
postal savings system was a pro¬
gressive piece of legislation and
met a real need, although private
banking reform might have met
this

need

better.

even

The

first

postal savings bill was introduced
into Congress in 1871. Opposition
was
vigorous, however, and for
over a quarter of a
century suc¬
cessive proposals

Congress.

80 bills

some

rejected by
this
period

were

During

discarded.

discussed and

were

Eight

different

masters-General

and

Post¬

several

Presidents actively promoted the
adoption of these plans, but their

weight of authority, or their po¬
litical power, was insufficient.
Supporters
of
the
proposals

argued, quite correctly, that there
were

many ignorant and illiterate

foreign-born

in

nation

our

did not understand

therefore distrusted them.

These

immigrants had formed the habit
keeping their savings at a post

of

office

in

Many

their

of

were

the

to

countries.

immigrants
sending i deposits

newer

actually

abroad

home

their

home

town

offices, in which they had
faith.
bills
laid

In most of the

advocated
on

the

post
great

congressional

much

stress

«

!

j

increase in

1099

'■

Security Traders Association

T.

^he total volume

I

of Connecticut

of saving Was also
expected, and
many of the arguments sound like
the modern social
security!
pro¬

posals.

ThCre

was

a

genuinej

'for. the old age

cern

ofj the

con¬

work¬

ing class strata. Much,of the dis¬
cussion portrays the
hardships of

involuntary ...unemployment,

the

-

virtufes of

thrift,: and the evils of
improvidence.? j
j
On both sides of
jhe debate

there
that

precognition

was

a

pf the fact
permanent and -more

more

satisfactory

-

soliition ' to

-

these

the

cent enactments this
government
sponsored savings program
\^as a

less
temporary attack on
the current symptoms of
economic
disorder, having little or no effect
more

on

or

the fundamental

was

principle that deposits

Leonard O. Ritter

Another argument of historical

importance in the development of
postal savings was the proposition
that savings institutions were
not
evenly allocated
geographically.

In

1910

few

there

areas

banks.

have

may

inadequately

been

served

recognized

accepting savings, but only

1,542 for each post office. There
were 5.4 post offices to each
such
bank.

There

miles of

there

area

was

270

were

for each

of

to

no

use

as

through both houses

Congress.

The

established

mercial

became

mand,
banks

Request

Members New

York Stock

Exchange

Private

Wires to

.7' 7

v7,

'

Buffalo 2, New York

Bell

System Teletype BU

46

>•,

Tucker, Anthony & Co., & Wertheim & Co., N. Y. C.

of

deposits

on

de¬

and
many
commerical
had failed. Dissatisfaction

With the existing savings facilities
a popular sentiment. This

com¬

to

on

inadequate reserve system exist¬
ing in 1907 many savings banks
had found it
impossible to meet
withdrawals

come

Circulars

Liberty Bank Bldg.

was

1910, and began
operations in 1911. Because of the

adequate op¬
savings banks

yet

organization

Request

on

DOOUTTLE, SCHOELLKOPF & CO.

of

in

country. Their dis¬
quite commonly over¬
looked the
availability of savings
departments in their local com¬
not

Descriptive

sav¬

to carry it

cussions

had

Cook

HOTELS STATLER

|

postal

the kind which had
developed
Eastern sec¬

panies

Aaron

BUFFALO BOLT

ings movement sufficient impetus

Southern

Insurance

Andrew L. Tackus

Prospectus Available

The reaction after the
panic cf
1907 finally gave the

in the Northern and
tions of the

banks.

Murray

savings institutions.

Savings System

and Western States held
that their

constituents had

J.

Sporadic Growth of the Postal

square

discernable.

portunities

Frank

DUREZ PLASTICS & CHEMICALS

bank, while

post. office for each
50 square miles. A
growing tend¬
ency for savings
institutions to
cluster in the cities was
clearly
from

Graham

Still more significant is
the fact
that postal savings
deposits today
are
concentrated
in
the
larger
cities, where banks are also avail¬
able.

a

Congressmen

E.

a

by

Professor

Kemrnerer has
pointed out that at that time there
was a
population of 8,370 for each
bank

John

President: James:P.
English, Cooley & Co., Hartford; First Vice-President:
Bros. & Coi,
George A. Dockham, Hincks
Inc., New Haven; Second Vice-President: Leonard O.
Ritter, Paine, Webber, Jackson & Cur¬
tis, Hartford; Secretary-Treasurer: John E.
Graham, Brainard, Judd & Co., Hartford; Governors: Frank
Murray, Day, Stoddard & Williams; Andrew
Tackus, Putnam & Co.; Aaron Cook, Putnam &
Robert Calvert, Tijft Bros.
Co.; and

causes.

who

banks and

our

FINANCIAL CHRONICLE

foreign born to the proper
use
cjf existing American sayings
be¬
institutions*, Like many morje re¬

Original Objectives of the Postal
Savings System
In

-

i

An

&

Savings

'

(Continued from

*

COMMERCIAL

be

(Continued

on

page

UNDERWRITERS and DISTRIBUTORS

1100)

to be made available for in¬

were

vestment purposes in this country.
It was believed that an Amer¬
ican postal savings system would

prevent the hoarding of currency.

of

FREDERICK S. ROBINSON £ 00.

INVESTMENT SECURITIES

INC.

ADVERTISEMENT
52

NSTA Boosters

WILLIAM

STREET

NEW YORK

Teletype—NY 1-5)05

5, N. Y.

Special Interest in All

Western

New

York

Issues

Telephone—HAnover 2-1282

(Continued from page 1098)

Spartanburg, S. C.
law (a. m.) & co.
Andrews Bldg.
SPBG 17

152
RANK

Andrew m. Law

&

INSURANCE

SECURITIES
/ "

h. j. Blackford

EDGAR

K.

SshoeHkepf, Hitton & Pomeroy,

INDUSTRIALS & MISCELLANEOUS

STOCKS

S. F. Cannon

SHEPPARD

■/

' —o—

HERBERT

T.

63 Wall Street, New York 5

Washington S060

BOwling Green 9-1860

REDMOND

Toledo, Ohio
collin, norton

&

.««.

70 Niagara Street, Buffalo 2

<

y

co.

508 Madison Ave.
(4)
TO 190
Adams 6131

Toronto, Ont., Can.
brawley,

Dealers In

catchers &

We

-company
Canadian Bank of Commerce

Bldg.
,

Elgin 6438

,

Over-The-Counter

Servicing

McLEOD, young, weir
company, limited
Metropolitan Bldg.

Securities

from

Patent Cereals Co.

Skenandoa Rayon Corp.

Bank

&

Oneida Ltd.

...

clast

Utica, N. Y.
(2)

Member

WALL STREET, NEW YORK 5, N. Y.

Tel. WUitehall 3-0550

Yonkers, N. Y.

*

van sijetendael
(a. o.) &

7

Utica

Knitting Co.

Oneita

Utica

&

Knitting Mills

Information furnished

on

Mohawk

Valley Ry. Co.

request.

Mohawk Valley Investing Company, Inc.

>

238 Genesee Street

Pittsburgh

Miami Beach

UTICA 2, N. Y.

co.
Own

20 S.

*

Tele. NY 1-2173

Syracuse 7.7':Harrisburg
*.

Co.

York Security Dealers Ass'n

—

72

Hotel

Utica & Mohawk Cotton Mills Inc.

Philadelphia Stock Exchange

Member New

4-3195

Utica

Trust Co.

Oneida National Bank & Trust Co.

BLJUR F. CLAYBAUGH & CO.

Mohawk valley investing
company, inc.




YORK

Bossert Company, Inc.

First

Dominion Bank Bldg.
Adelaide 7936
-

Broadway (2)
Yonkers 2318 Yonkers

NEW

Duofold Inc.
Daniel Green Co.

Coast

limited

i

CENTRAL

Securities

Dealers

midland securities

238 Genesee St.

&

&

Elgin 0161 ;

ut 16

UTICA

Specialize In

Private

Wire

System

Bell

Teletype UT 16

Telephones 4-3195-6-7

3-0355

V;

THE

Thursday, September 6,1945

FINANCIAL CHRONICLE

COMMERCIAL &

No bank is permitted to

System.
receive

$25.00

(Continued from page 1099)
might have brought about some
rather obviously needed reforms
the

in

structure and

a

part of the segment of
the population served by this in¬
stitution.;-'.
vvv

renewed emphasis

free

trend
; In

its

early

the postal

years

geographic
institutions
were less convincing historically
and in our modern economy they
have lost any significance they
The criticisms of the

savings system grew much slower
than had been expected. It even¬

have

may

profitable for the banks dur¬
the decade of the twenties,
as
it turned out' they were
rather glad to have this business!
was

ing

and

I >

savings

of

allocation

•*'

confirmed.

was

*

possessed.

once

depositors"
balances increased from $164,000000

1933

and

1929

$1,209,000,000. the greatest

to

regulated
life. insurance
companies in every State.
War
bonds and other government se¬
curities are available everywhere.
It seems clear that the postal

spurt in the history of postal sav¬
ings. The inflation and popula¬
tion growth of the 1930's did not

proportionate increase in
depositors' balances after 1933.
By 1939 the total had only reached savings system no longer meets
a
real need.
It does, however,
$1,279,000,000. But by May of 1945
offer an investment which is be¬
depositors' balances stood at $2,607,000,000. During the war years coming increasingly attractive as
postal
savings
deposits
have the yield on high grade bonds
doubled. There is reason to ex¬ drops lower and lower, forcing
pect a strong post-war growth at private institutions to pay lower
the expense of privately owned rates on savings deposits.
The bulk of the postal savings
institutions
if
the
law is not
a

cause

receipts

changed.

as

A

Modern

Evaluation of

though

Postal Savings

The

arguments supporting the

savings legislation seem
very plausible when they dwell
the facts about immigrants in

the working class. But these facts
have changed today.
Our immi¬

gration laws Ond our educational
efforts have rapidly reduced the
number

In

ers.

some

60%

of

the

probably

money

22.00

~

ing and made their way through
safety of postal savings into
the

productivity

commercial

hoards

reached

have

never

of

Such

channels.

the

.

21.00

During the banking crisis of the

tt •

»

►

•

•

tr

money

Fortunately the great bulk of this
outflow
was
immediately ; re¬
turned to the banks in the form

5

tj

government deposits.
Much
that
would have been
hoarded
was
returned
to
the

of

wa!r

•>

r

money

bc ND

CSERI E5

E)

banks

19.00

this

by

aAA

into

entirely

banks they

are

deposits

such

insure

required to
or
pledge

ity. In addition, they are

6

5

4

3

1

7

9

8

10

an

We

2V2% interest on the aver¬
daily postal savings funds car¬
in time deposits, unless the
maximum rate set by the super¬

age

ried

vising authorities is less. Prefer¬
ence is given to banks in the neigh¬
borhood of the post office and to
members of the Federal Reserve

funds was invested in
government bonds, and about 86%
was
redeposited in banks. Since

opportunities

investment

1933

unattractive that

have become so

few banks have accepted
deposits. Furthermore, the
Roosevelt Administration has al¬
very

such

required

the postal savings

needed

the annual

deficits.
Accordingly
the dominant investment of the

Treasury

DEALERS & BROKERS

everywhere
particularly

Y your

has become
The
Treasury has spent the proceeds
from the sale of these securities
on public relief, reflation projects,
and the present war effort.
If
postal withdrawals should exceed
deposits the Treasury will return
this money out of tax receipts, or
more probably by borrowing else¬
where. In this respect postal sav¬
ings certificates are just like de¬
fense'bonds. It is equally patriotic
postal savings system

j

invite

-

y'.,',

in

.

inquiries in:

UNLISTED SECURITIES

BILLINGS & SPENCER

LANDERS F. & C.

CONN. I.T. & POW.
NEW BRITAIN MACH.

Securities

Specializing in

RUSSELL MFG. CO.

SCOVILL MFG.

new england issues

TORRINGTON CO.

either.
only about 4% was re-

to buy

COBURN & MlDDLEBROOK

49 FEDERAL STREET,

"

Teletype HF 464

„

One Wall St., New York 5
New London

7-1288

2-1135

,,

Hubbard 0810

Hartford

Hartford Tel. HAnover 2-5537*

1

BOSTON 10, MASS.

„

New York

Portland, Me.

303

4-2693?

was

made available

Telephone—HAnover 2-9238

postal savings system as

Telephone—Enterprise

1944, appears as follows:

9120

WASHINGTON

PHILADELPHIA

Norwich

about

for gov¬
ernment
spending by the pur¬
chase of government bonds.
A
simplified balance sheet of the
90%

Teletype BS 189

;

and

banks,

in

deposited

INCORPORATED

N. Y. Tel. HAnover 2-5537*

Hartford Tel. 7-3261

In 1939

W. H. Bell & Co.

St., Hartford 1

securities.

States

United

AETNA LIFE

Municipal

new

savings
to pay

AM. HARDWARE

New Haven

rela¬

tionship in recent years.
In 1931 about 8% of the postal

Bank

N. Y. Tel. WHitehall 3-4794

The

procedure.

postal savings system was thus
supplementary
to the
existing
banking structure at one time, and
not directly competitive with it.
The situation has been allowed to

CONNECTICUT

49 Pearl

the

drift

Industrial- Utility

State &

from

banks and put it in postal savings.

V-

T

depositors

many

their

withdrew

20.00
K.

1930's

early

sav INGS

required reserve must be in law¬
ful money, and amounts to 5% of
;he total postal savings deposits.
When funds are offered to selected

MARKETS for Dealers

-

banks

ings system.

a*

P0 STA

receipts to help meet

Insurance

would
.

without the aid of the postal sav¬

ways

Primary

of

sums

came out of hid¬

the

special legal reserve for

enough approved government se¬
of unassimilated foreign-, curities to guarantee their liquid¬
1916

postal

the Treasury

ocal

!

Considerable

boxes.

liquidity has always been held at
in Washington. This

postal
on

a

the

bowls, dresser drawers, and strong

originally invested
in local banks,

was

that

system
prevented
the
of currency in sugar

savings

deposits

time

historical validity

some

argument

hoarding

v

quite common all over the nation
Annuities,
computed
at
good
rates of interest, are sold by care¬

fully

the

to

tually

tween

is

There

23.00

The

Federal Reserve System, rigorous
reached a 1918 peak o::
$168,000,000 in depositors' bal¬ examinations, and Federal Deposit
Insurance have made our com¬
ances. After the first World War
mercial
banks
safe.
Insured
it declined in volume until the
building and loan associations are
1929 panic gave it new life. Be¬

its

capital and surplus of each.
The handling of these depositi

2400

the major

competitive enterprise. In¬
stead, a governmental institution
was
created, and the socialistic
on

were

foreign born, but at the present
time native Americans make up

banking

contemporary

depositors

savings

postal

of

excess

capital plus half of its surplus
Deposits • are
to
be
allocated
among the qualified banks of the
community in proportion to the

Savings

The Future of Postal

deposits in

of June,

Assets—

Cash
U.

1,951,000,000

bonds__.

Cash

•Direct Hartford-New York 'Phone

$9,000,000

banks—

in

S.

135.000,000

funds_____.

reserve

$2,095,000,000
Liabilities—-

Deposits
m

Other

"Golden

{
FIFTY

-

FIFTH YEAR OF DEALING IN

$2,095,000,000
Conclusion

Primary Markets
Statistical Information

<

Send for this list immediately
prepared

a 5-point program expressly to meet your
needs—today, tomorrow, and right through the
reconversion period. The stocks listed are divided into

investment

groups

and arranged according to

of investment
We

are

specific

our

best present estimate

timing.

purpose.

a

Each will find its place in the investment

should be making

now

for the next months

j
I

|

Members New York Stock Exchange

209 CHURCH STREET, NEW HAVEN 7, CONN.

Bell Teletype—NH 194

t
.

Telephones: New Haven 6-0171

York CAnal

6-7870

.

Hartford 5-2410




a

is

war

real need.
over

directed at the

STANDARD & POOR'S

CORPORATION

New York 14, N.Y.

]"■/

668-127

again be

expansion of

with full
a

the

indi¬

A balanced econ¬

employment will

vigorous flow of pur¬

selling
bonds
will surely cease. At this time the
political
atmosphere
might be
quite receptive to proposals for
of

Offer open to new readers only.

Now that

government propa¬

ganda efforts may once

high

the

ings.

1.

savings no longer

that postal

chasing

mittee's program for the near-term and the
long-term
issues of The Outlook, a Service for Investors."

345 Hudson Street

New

ers

require

Also. 3
,

social work¬

increasingly clear to

omy

Tear out and mail this ad with your name and address
and $1. We will send you the 5 lists of stocks,
important
studies of each list and our Investment
Policy Com¬

genuine

a

spirit of free

vidual spending.

and perhaps years.

Chas. W. Scranton & Co.

is

of the

meets

offering 5 lists, totalling 160 stocks. Each list is for

program you

|

renais¬
enter¬
prise, this particular form of gov¬
ernment in business might find
itself without support. It will be
there

If

sance

We have

SECURITIES

$2,034,000,000
61,000,000

...

t

To Consider now

CONNECTICUT

"I-

—-

Age" of Peace and Prosperity
Already Beginning

l

power.

Pressure

interest

abandonment

savings

of

postal sav¬

Volume

Number 4418

162

THE

COMMERCIAL & FINANCIAL CHRONICLE

Boston Securities Traders Association

The First Year After World War I
(Continued from page 1079)
bauch instead of

steady ebbing
back to a peace or ante-war basis.
During the war the labor unions
everywhere
had> acquired
the
habit of. asking for higher wages
a

and for shorter hours of work, and

interruption

no

as

activities

could

while the

of

industrial

be

permitted

conflict continued

(out
of a fear of the effect upon the
war), labor largely, in fact almost
entirely, had its own way. It got
a

shorter day and it got repeated
in wages, this indeed

increases

being one of the main factors in
the great rise in prices which at¬
tended the
It is

war.

customary for labor union

organizations to emphasize labor's
contribution in winning the war.
They would have it appear that
labor made special concessions so
as to help the Government in the
prosecution of its great undertak¬
ing. Very few men have seen fit
to challenge the statement, and it
is being repeated with such per¬
sistency and frequency that there
is danger that among the unin¬
formed it may in the course of

be accepted

years
seems

proper,

here, in
the

the truth. It

as

therefore, to state

review and analysis of

a

events

and developments of
and the period succeed¬

the war,

ing

its

conclusion, that, so far
having been especial¬

flict

ceased.
Labor, under the
guidance of labor union officials,

in

saw

the

tunity

and

limit.

It

rupted
tion

not

activities

to

be

This

was

that

the

allow

in¬

inter¬

be

to

anywhere,

had

utmost for the
war.

obvious

could

since

produc¬

stimulated

to

the

prosecution of the
not

so

merely at

munition

works, but everywhere.
Government
requirements,
of
course,
had their
ramifications

everywhere, for the

army had to
fed, as well as sup¬
plied with the tools of war, and
in the present instance an extra
be clothed and

responsibility

rested

Government in

the

the

upon

circumstance

which

the

United

States

was

from

the

Government's

Government, the

cise opposite was the
it would be
that

no

case.

pre¬

Indeed

exaggeration to

say

labor

indulged in the most
unconscionable profiteering while
hostilities

were going on and
tinued the practice after the

con¬

J. F. McCormick, Jr.

James R. Duffy

direct

be maintained to their fullest limit
if the
cess

war

was

to be made

The labor leaders
to

a

suc¬

mm

beyond peradventure.
were

not slow

this and they were gov¬
accordingly. By strikes or
threats of strike, shrewdly based
upon the
knowledge of the in¬
ability of the producer and manu¬
see

erned

facturer

to

resist, it being indeed

felt

tions of the

Engdahl

needs, industrial activities had to

Government during the war and
having refrained from action that
opera¬

Arthur E.

sociated, needs which this country
alone could supply, had also to be
considered.
But
entirely apart

be allowed to resist in view of the

the

A. N. Winslow, Jr.

as¬

ly considerate of the needs of the

with

Walter J. Connolly

that the needs of the Powers with

self-evident that

interfere

!!!S!llli"»Jll

great oppor¬
of it to the

availed

was

Government

dustrial

its

war

from labor

might

1101

they would

not

virtual pledge that every producer
under that output must be

fully maintained,
in enforcing- all
whatever nature,
way of increased

labor succeeded
its demands of
not only in the
wages and re¬
duced hours, but in the way of
numerous
other
concessions, all
(Continued

on

page

1102)

John W. Altmeyer

Herbert C. Smith

R. M. Whitcomb

Sumner R.

Wolley

President: Walter J. Connolly, Walter J.

Connolly & Co.; Vice-President: A. N. Winslow, Jr., Perrin,
West & Winslow; Treasurer: Arthur E. Engdahl,
Goldman, Sachs & Co.; Recording Secretary: James
F. McCormick, Jr., Mixter & Company; Corresponding
Secretary: James R. Duffy, Paine, Webber, Jack¬
son & Curtis; Governors: John W.
Altmeyer, Hay den, Stone & Co.; Harold R. Beacham, Josephthal &
Co.; Herbert C. Smith, Blyth & Co.; Lawrence M. Stevens, Graham, Parsons & Co.; Reginald M. Whitcomb, Spencer Trask & Co.; Sumner R. Wolley, Coffin & Burr.

con-

J

r*

Established

NEW ENGLAND MARKETS

1926

GENERAL MARKET ISSUES
Retail N. E.

H.D.

$

Coverage

i,

1

Secondary Distributions

K

i

TRADING MARKETS

N 0X

Banks-Ins-Ind.-Utilities

Inactive N. E. Securities

& CO.
MEMBERS
New

York

Security

Security Dealers

Ass'n

Dealers

Ass'n

of New England

F. L. PUTNAM &
77

DEALERS AND

Franklin

CO., INC.

Street, Boston 10, Mass.

148 STATE STREET, BOSTON 9,

Teletype—BS 497

Telephone—Liberty 2340

BROKERS IN
PORTLAND,

ME.

PROVIDENCE, R. I.

r ■

SPRINGFIELD,

MASS.

N. Y.

Telephone

t;

MASS.

Telephone

HAnover 2-7914

CAPitol 0425

OVER-THECOUNTER
SECURITIES

Chas. A. Day & Co.
Incorporated

TEXTILE

LISTED and UNLISTED
BONDS and STOCKS
Particularly of

NEW ENGLAND CORPORATIONS
11

Broadway

NEW YORK 4

Telephone DIgby 4-1388
Bell System
Teletype NY 1-86

LOCAL SECURITIES

Inquiries invited from Dealers
and Financial Institutions

Maintaining

a

Retail Department
England

with Distribution in New

WALTER J. CONNOLLY & CO.

27 State Street

BOSTON 9

Telephone CApitol 8950
Bell System Teletype BS 169




INCORPORATED

1923

WASHINGTON AT COURT STREET

24

Member Boston Stock Exchange

FEDERAL ST.,

Telephone Hubbard 3790

«*<* *»

1 *¥ 1»we

BOSTON 10

Bell System Teletype BS-128

-»

1

i

wholly unpropitious
either in

moment was

The First Year After World War I
(Continued from page 1101)
f Labor Board hence had practical
that
he
would
be
tending to add to the cost of pro¬ assurance
ducing. And this occurred over granted some advance.
*
It was supposed that the high
and over again. The process was
repeated many times and always
with absolute assurance of success.

The

ostensible

mands

was

of

basis

the

de¬

invariably the higher

of living, which in the last

cost

analysis was due, even during the
war/ to this process of raising
wages and shortening hours in one
line of human activity after an¬

would belong merely to the
period of the war, and that with

wages

the

close

hostilities

of

i

wages

would

even

to

Indeed;
of the wage increases had

a

many
been

if only

gradually tend

lower level again.

tics,

tion

it

1919

be

must

admitted,

who

advantage
still further.
early in the year, when

were

tions appeared

put forth without any. refer¬
relevancy to the cost of

for

of

Labor Board

for

iI

had

purpose

been

As

Its main function seemed td

to

tone, down
in

wages,

first instance

were

proposed ad¬
which

in

the

made unduly

high so as to allow room for ton¬
ing them down. The War Labor
Board did not

care

to

was

run

the risk

n

the

G.

Grace

doubted

that

established
during the period of the war
would
easily < or quickly
come
down again. But at least hardly
any ~ one
imagined
that wages
would rise still higher—that on
top of the increases made during
the war and arising out of that
emergency there would be fur¬
ther

and

creases

wages

even

than

striking in¬
those
already

more

granted.
And herein lies one of
view of the imperative the main reasons for the mistake
made
in
need
of
prognosticating
the
keeping
the
laboring
classes satisfied and contented so course of the year. The labor cost
that there should be no cessation of an article, constitutes as al¬
from work, and the employee in ready stated, by far the greater
submitting his case to the War part of the total cost of such
in

situation

in

the

cline.

also

suffered

Production

On

cotton

centres

were

curtailment

dence.

Print

to

that

in

evi¬

two

every

25%

to

9.25

cents;
on

Jan.

Jan.

cents;
Jan.

on

27

to

to

8

30

on

Jan.

on

21

to

8.50

Jan.

or

18

8.75

to

a




MEMBERS, NEW

Private

Wire

Bell

9
on

of

found they could not grant

increase of 25%.

12V2%,

price of
cents.

a

raising

This offer

EXCHANGE

MEMBERS

LOS

STOCK

EXCHANGE

System

New York,

Philadelphia

and

Los

Angeles

N.Y. Telephone—WH 3-7253

Philadelphia Telephone—Ritt. 4488

the

was

EXCHANGE

STOCK

an

They

increase
weaving

cut of cloth up to 44.98

Hagerstown

PHILADELPHIA

Teletype—PH 265

of

prevailing.

further

MEMBERS

ANGELES

increase

additional

STREET

STOCK

the early months of the
until on March 7 it was down
Thereafter, however,
improvement began, and by the
end of the year the quotation was
during

year

to 6.75 cents.

The extreme urgency
for goods made

14.50 cents.

demand

the

of

possible this great advance in
price. Early in 1919, following the
signing of the armistice the pre¬
vious November, when prices were

had

there

still

for

looking

been

cancellations

lower

orders.

of

prices,

extensive

very

Contrai-

wise, when it was seen that

pectations
not

were

ders

be

lower

realized

in

land

as

of

force

the
all

week

New Eng¬

against the previous 54-

secure

obtaining
was

or¬

excess

48-hour
over

hour week—and all

very

were

anxious

prompt deliveries.

The

of prompt deliveries
difficult, and in numer¬

instances

ous

new

capacity of the mills to take
the same—especially on

now

to

ex¬

prices

of

basis

the

to

still

began to pour in, in

of the
care

of

quite

impossible,

ing additional orders, purchasers
seeking to provide for future de¬
mands
by
placing orders well

cotton

Pittsburgh

YORK

cut of

one-day strike

PHILADELPHIA 2, PA.

Los Angeles

re-

operatives at Fall

BUCKLEY BROTHERS

New York

they

and this had the effect of bring¬

did, however, tender

Though the

WALNUT

and

other increases.

'I'

1529

a

64, 28-inch

on

turers

cents;

cents, and

cents.

16

x

By this time,
manufacturing indus¬
try was on a highly prosperous
basis again, the demand for goods
having outstripped the produc¬
tion and sent prices of goods sky¬
ward; nevertheless, the manufac¬
the

high price in 1918
a yard, reached
May; at the opening of 1919
the quotation was 9.75 cents per
yard; on Jan. 13 there was a re¬
cents:

the

1

an

ready

in

9.50

64

top of the prodigious ad¬
previously made and the
unprecedently high wage scale al¬

had been 14 cents

to

weaving

vances

three days. The

duction

for

Manufacturers' Association to

grant

at Fall River

down

workers. This

because of the refusal of the Cot¬

was

effect
was

cloths

marked

were

the

Dec.

ton

reduced and advices from all mill
further

cents

River engaged in a

sharp de¬

a

Lawrence, which
15 weeks and in¬

at

some

demands for still

year

of textiles

strike

to

printing cloths
compared with
only 22.71 cents at the beginning
of 1916. Even that, however, did
not suffice to prevent subsequent

goods trade was decidely cha¬
otic, and during January sharp
reductions in the prices of cotton
goods were announced, while raw
cotton

a

39.10

mills of New Eng¬

opening of the

end

served

last

This

cloth 47j/2 yards of

everything else

year.

At the

June-2;

volved about 25,000

that

labor

tive

advance made the new wage basis

indication of this there
the demand of the operatives

1919

Eugene

of

part

goods

a

had lasted

one

land.

of incurring the displeasure of la¬

bor,

the

dominate

in the cotton

cre¬

disputes between employer
and employee. This Board, howf
ever, really had no more freedom
of action than the employer him¬

on

to

was

of passing

upon

vances

f.

the

de¬

manifestation of the

a

position to enforce their claim,
be folly not to avail of
the opportunity.
While the war
continued in progress, the purpose
was not thus openly avowed, but
subsequently all disguise in that
respect was cast aside. A special

be

•

was

during the

self.

I? I

of

cause

there

spirit

War

further

of

laboring classes be¬
military demobilization

good things of life, and now that
they were, by reason of the war,

ated

Even
condi¬
to be unfavorable

assertion

later on

cotton

the

voluntary increase was
granted to virtually
all cotton
mill workers, and became effec¬
May

mands by the

it would

\it

the

workers

turned to work the next day. v
The price of printing cloths at
Fall River continued to decline

of plunging downward with such
worked. great rapidity and everybody was

jtrade improved and the following

already
pressing its

it insisted on

in

outlook

the

On the contrary, as

noted,

in

&

jot of the ad¬

a

vantage it had: gained during the

living, but made on the general
theory that the work people were
entitled to a larger share of the

.

not

mill

the

parly in February on the basis
pay for the time actually
As it happened, however,

Labor

1918.

and

1917

abate

pay

hour

had been

of

ence

4

of

war.

ing served as the pretext for many
labor's demands, I. often
they

l?-f

were as numerous as

would

While the rise in the cost of liv¬

I,

The

the

at

quite generally elsewhere the 48week was put into effect

previous great in¬
wage demands of

the

after

week,

they were then
receiving for 54 hours.. At Law¬
rence, Mass., a strike actually re¬
sulted because of the refusal of
the manufacturers to comply with
the demand. At Fall River and

as

flation.

those

other, thereby increasing the cost
of producing and manufacturing,
in which labor cost ] is in nearly
every instance the largest item.

they demanding a 48-hour
but

prices, and in turn
prices remained at
such high levels, with the tendency
higher instead of lower, there
could be no contraction, no defla¬
long

this very time

operatives launched a
movement
for
reduced
hours,
cotton

the

reduction in

so

of shorter hours or in¬

way

creased pay, yet at

ing still further, instead of di¬
minishing, as had been supposed
would be the case, there could be
no

labor demands,

new

the

tions, and with this labor cost ris¬

definitely limited to the pe¬
war. There were skep¬

riod of the

for

relatively few excep¬

article with

Thursday, September 6, 194$

CHRONICLE

THE COMMERCIAL & FINANCIAL

1102

accepted by

ahead

of

prospective needs. " In

this cotton goods trade the situa¬
tion

finally became

so

acute,

ow¬

ing to the inability of the mills
to provide supplies for immediate
delivery, that prices no longer
were any consideration.
In other

words, purchasers were willing to
almost any figure if only they
could obtain the goods.

pay

The

experiences of the cotton
operatives in New England
in the matter of wages was dupli¬
mill

cated in

practically all other lines
with one or two ex¬
ceptions. Not only was labor able
to retain the high wages of 1918,
granted while the country was

of industry,

(Continued on page

1103)

Volume

Number 4418
'■

162

THE COMMERCIAL & FINANCIAL
CHRONICLE

Investment Traders Association of

The First Year After World War I
(Continued from page 1102)

continued far in

ment stores

demands

simultaneous
creased

and

wages

other

in¬

decreased

hours, and with rare exceptions
succeeded in getting at least the

portion

major

of

what

it

asked

•

for.

the result of these repeated
increases and the exceeding¬
ly high levels of wages thereby
As

wage

established the weekly income of
the wage-earning classes, who of
constitute

course

the

bulk

of the

population, was raised to figures
which previous to the
war
no
of

one

them

hope for
Men

who

$3.50

a

$6

$7

or

And

would

had

been

day could
or

they

have

dared

in his wildest fancy.

even

$8,

getting $3

or even

or

command

now

$10

proceeded

a

to

day.

spend

these large earnings with the ut¬
most

prodigality.

The department

stores in the different cities
did

never

larger nor a more profit¬
able business, they were in the
heyday of their prosperity.
That
a

class of the population dependent
upon fixed incomes which cannot

be readily changed—such as col¬
lege professors, school teachers,
post-office
employees and mu¬
nicipal and State officials, as also
the

widow and other dependents
deriving their main support from
the

income

vided for

the

of

special funds

high cost of living

drawback
Not

ence.

pro¬

their protection—found
to

a

serious

comfortable

exist¬

the

so

laboring classes,
with their new-found
ability to
fix wages to their own
liking and
as high as they
pleased. As al¬
ready
stated,
they
spent
the
money as freely
as
it came to
them.
They seemed to feel that
they had come into a new privi¬
lege. Saving, economy and thrift
thrown

were

into

bought only the

limbo.

most

They

expensive

luxuries

fix

to

Silk shirts and
what

were

ap¬

pealed to these peoples, now sud¬
denly blessed with large incomes

excess

for

'

not slow

were

prices accordingly.

—incomes

of the supply.

The return to their
ordinary pursuits of 4,000,000 ro¬
bust young men from' the army
did not operate at all to produce
any over-supply of labor as had
been
feared might be the case
when 1919 opened. Thus labor was
in position to command its own
terms.
And, as already noted, it
pushed its advantages to the ut¬
most.
It made, in many cases,

Philadelphia

things and showed contempt for.
low-priced articles.
The depart¬

engaged in military opera¬
tions, but to get still further in¬
creases.
Wage increases followed
one
another in rapid succession.
As it happened, too, the demand
still

for labor

1163

surpassing that of the

professional

man,
enjoying the
advantages of a college education
and long years of training and
study—and
nothing
seemed
so
high-priced as to be beyond their

reach.

Buying without stint and in the
most reckless
and

over

fashion, they foun$
again

over

that

even

the extra large income they were

enjoying dicj not suffice for
needs
according
to
the
changed habits they were now
indulging.
Instead. of
realizing
now

Russell M. Dotts

Alfred

W.

Tryder

their

John M. Hudson

FloycJ, E. Justice

R. Conover Miller

m

that

they were indulging in an
orgy
of extravagance and that

virtually the whole laboring

com¬

munity

same

thing,

doing
difficulty

the,

were

the

of

making
even an enormously
enlarged in¬
come cover their swollen
outlays
simply bred and paved the wayfor

demands of further wageAnd
so
the
process

new

increases.
went

Each wage increase led
extravagance and greatr
recklessness of expenditure, and
on.

to further
er

the

inevitable

greater

pay

lowed.

of

still

undeviatingly

demand

fol¬

Labor union leaders made

charges

of

profiteering

against

the manufacturer and trader, and
or less
profiteering was un¬

James J. Morrissey

more

questionably indulged in — the
seller raising his price not only
sufficiently to cover the added
labor cost, but to leave a little
extra profit for himself—but in

R. V.

Mosley

George J.

S.

Muller

K.

Phillips, Jr.

President: Russell M. Dotts, Bioren & Co.; First Vice-President: Edmund J.
Davis, Rambo, Kean, Close
& Kerner; Second Vice-President: Alfred W.
Tryder, W. H. Newbold's Son & Co.; Secretary: Frederick
S.

Fischer, H. N. Nash & Co.; Treasurer: John M. Hudson, Thayer, Baker & Co.; Governors: Percy Davis
Ayres, Merrill Lynch, Pierce, Fenner & Beane; John G. Barton, Smith, Barney & Co.; Charles J. Brennan, Blyth & Co., Inc.; Harry H. Fahrig, Jr., Parsly Bros.; Paul C. Fredericks, Jr., Warren W. York &
the last analysis the trouble was
Co.; Richard Heward, John Hopkins & Co.; Floyd E. Justice, Butcher & Sherrerd; James J. McAtee,
with
the
laboring man himself Butcher & Sherrerd; Wm. McCullen, W. H. Newbold's Son &
Co.; John P. McFadden, Smith, Barney <&
his

and

own

family.

wages

By

raising his
again,

and

over

over

and

thereby adding to labor cost,
and doing this in one line of in¬
dustry after another through the
whole

made

of

gamut
advances

industries,

in

prices

necessity and by supporting
high values by his own reckless
unrestrained

buying he en¬
those having goods to
dispose of to make inordinate ad¬
couraged

in

vances

Thus

price levels.

labor

victim of its
still

and

really
own

became

greed for

And

the

more

all the
time labor had the remedy within
its

own

time

more.

hands.

have

It

forced

yet

could
a

at

IT

he
ab¬

an

solute

and

Co.; Joseph McNamee, Hornblower & Weeks; R. Conover Miller, E. W. & R. C. Miller & Co.; James j.
Morrissey, Becker & Co., R. Victor Mosley, Stroud & Co.; George J. Muller, Janney & Co.; Samuel K.
Phillips, Jr., S. K. Phillips & Co.; Wallace H. Runyan, Graham, Parsons & Co.; Harry Snyder, Yarnall &
Co.; C. L. Wallingford, Jr., E. H. Rollins & Sons.

the

economic world everywhere were

high cost of living if it had
entered upon a policy of studious¬
ly declining to purchase highpriced articles. Then such articles

against

would

there is not

have

become

unsalable,
would have become a drug upon
the
market, making reductions
necessary in order to dispose of
the goods instead of permitting
further advances.

Leaders

in

the

urgent

saving,

thrift

the

as

and
soverign remedy
cost of living,
but
economy

one

the

record

on

a

single in¬

stance where labor union

the

officials

advice or recom¬
practice of similar
virtues.
Instead they urged fur¬
ther wage increases, and the la¬
gave

mended

same

the

boring man was taught, that the
employer was helpless as against
the united and concerted demand

of the employee.

Wage
creases

such

'

increases

succeeded

and

one

undeviating

price

regularity

ally referred to as the operation
(Continued on page 1104)
&
.

in

Greetings and Best Wishes
from Philadelphia
We specialize in

TRADING DEPARTMENT PERSONNEL
R. Victor Mosley, vice president

General Market Securities
r. Victor Mosley

Tax Free in

Equipment Trust Certificates

Pennsylvania

Frank J. Laird

L. Wister Randolph
railroad Bonds

Allen B. Foard, jr.

City of Philadelphia Bonds

Thomas F. O'Rourke

Public Utility

John k. Ruckdeschel

industrial

Frank J. Laird

Bonds ft Stocks

guaranteed pleased R. R.

Russell m. Ergood, jr.

Michael J..

Pennsylvania Turnpike Bonds

Municipal bonds

Rudolph

.

...

John R. Hunt

sales order department

Edward F. Hirsch

Statistical Department

William Prescott Watts

Railroad

Felix E. Maguire

bell System Teletype

Yarnall
Members

Philadelphia

Stock

New

Exchange

York

Si Go.

Stock

New

Bond Consultant

field

New York Wires

-

-

Ph

representative

296-297

REc. 2-6528-29

Exchange

York Curb Exchange

(Assoc.)

Stroud & company
1528 WALNUT ST.,
,

Bell

PHILADELPHIA 2, PA.

System Teletype

-

PH 22

Direct New York
Telephone to Montgomery, Scott &




v

INCORPORATED

123 S. BROAD STREET

Co.—REctor 2-0790

-——r-

new york

pittsburgh, pa.

allentown, pa.

PHILADELPHIA 9. PA.

scranton, pa.

that

the matter finally became gener¬

any

reduction

j

in¬

another with

williamspgrt, pa.

reading, pa.

THE COMMERCIAL &

1104

prior to the war, which at that
was worth 500 cents, is to-day
worth
approximately,
judging
from competent
authority, only

The First Year Alter World War I

time

railroad

situation

was

becoming

complicated because railroad
employees who, in 1918, when Mr

very

McAdoo

was

Director-General

of
The
statement ary should prices continue to
$2.15." They said they did not Railroads, had been awarded such
that a widespread soar." To this, they added the fol¬
"believe that increasing the com¬ prodigious
wage increases were
said that late in the summer a spirit of unrest existed among all lowing significant remark: "We
pensation
accompanied
by
a again active in trying to secure
glimmer of intelligence did seem classes, especially among wage- believe the true remedy for the
On July 31
greater increase in the cost of additional increases.
to dawn upon the heads of at earners
"whose
wages
will no situation and one that will result
commodities of life, will produce William G. Lee, President of the
least one large labor body as to longer
provide
adequate food, in lifting the burden under which
lasting benefits to our craft or to Brotherhood of Railway Train¬
the working of this "vicious prin¬ shelter
and
raiment for
them¬
the American citizen in general." men, announced that a resolution
ciple." On July 30,. Warren S. selves and families." The belief
They sought an audience with the adopted the day before by a speStone, Grand Chief of the Brother¬ was expresed that this situation
President and his Cabinet for the
hood of Locomotive
Engineers, had been brought about "mainly
purpose of laying this situation
and the other members of the Ad¬ by conscienceless profiteering by
before him.
visory Board of that Brotherhood, the
great
interests
who have
presented a statement, which was secured control of all necessaries
There appeared some prospect

(Continued from

,

Thursday, September 6,1945

CHRONICLE

FINANCIAL

1103)
It is to be

considered.

ly

page

of the "vicious circle."

went

addressed to President Wilson and

of

"Gentlemen of the

declared

reference to the
of

living

statement

meeting
held
an

commodities."

of

in

the

we

This

that

Advisory

Cleveland

increase

the

in

"commensurate
tions

out

at

the

there

of

of

condi¬

find because of the

stantly increasing

cost

commodities" had been

men

that

upon

seemed

to

"should

living
thorough¬

this

relief

the

be

be

granted

tempor¬

advantage to be derived from
in
wages
where
at¬
tended
by renewed rise in the
cost
of
living.
Unfortunately,
however, Mr. Stone did not show

much much

own sugestions, and
quickly became apparent that
the railway unions, the Brother¬
hood
of
Locomotive
Engineers
among them, were aiming for the

it

the

continuing interest in-

g

is

whole

for

$4.00 Pfd.

some

Penna. Telephone Co.

$2.10

Pfd.

duce

5%

Pfd.

of life to

James River Bridge w/s 2-6s
Continental Diamond Fibre 4s
Penna. R. R. Ser. Sec. 4s
No. Penna. R. R.

adequate
the

a

1960

considered

1954-1964

forced

to

we

feasible

represent

of the

Graham, Parsons & Co.
MEMBERS

NEW

YORK

NEW

YORK

AND

BOSTON

CHESTNUT STREET,
LOCUST

BOSTON

STOCK

BELL
READING

EXCHANGES

TELETYPE

PITTSBURGH

PH

292

PROVIDENCE

that

those

YORK

control

system

to the submission of
very radical

propositions
labor.

be

In

on

this

behalf of railway

new

endeavor, the

employees of the railroads were
perhaps no more dictatorial than

whom

be

the

wage-earning

classes

gener¬

ally had become, but the compre¬
the purchasing price
hensiveness of the scheme for

dollar, be that what it
can

may,

Frank W. Mondell

cial committee of 16 appointed at
then recent convention of the

a

trainmen

at

less money than prior to the
war,
as "a daily
wage of $5

portunity for launching their pro¬
posal in the circumstance that the

inasmuch

ministration,
by

mands

of

t

ESTABLISHED

We

offer

to

Brokers and

Security Dealers

an

experienced department for handling the

1837

clearance of security transactions.
are

of the

is very

cost

Members of
New York Stock
New

Our

best and the

Curb Exchange
Philadelphia Stock Exchange

for

"a

in

the

increase

Inter-State

on

and

Foreign Commerce, and to Sena¬
tor Cummins, of the Senate InterState Commerce Committee, rec¬
ommending that Congress create
a

Board empowered to investigate

and

pass

all

on

problems.

railroad

wage

The President's letter

prompted

by

communica¬

a

Hines, the new Director-Gen¬
Railroads, calling attention
to the wage demands of the Rail¬
road Shopmen, and suggesting the
creation

of

such

a

Board.

The

President endorsed the suggestion

on

Lives and

Granting Annuities

York, Pa.

gested

Member

the

that

Board

proposed

be

empowered to fix trans¬
portation rates.
Since the ques¬
tion of rates

the

was

so

closely allied

problem, the Presi¬
expressed the hope that it

dent

wage

would be possible for the commit¬
tee addressed
"to consider and

PHILADELPHIA 1, PA.

legislation which will

recommend

Member

Federal Reserve System

urged it upon the attention
Congress.
The President sug¬

also

to

15th and Chestnut Streets

3-4000

substantial

very

wages."
August

eral of

The Pennsylvania Company

New York WHitehall

de¬

and

For Insurances

to

on-the

D.

moderate.

Inquiries Invited

Locust at 16th Street,
Philadelphia 2, Pa.

Private Phone

1

Brotherhood,

Thereupon (namely
on
1), President Wilson
addressed a letter to Representa¬
tive Esch, Chairman of the House

of

Lancaster, Pa.

Administration took

October

tion he had received from Walker

Exchange

York

❖

Ohio,
unless

that
wages of the trainmen either be

was

facilities

Associate Member

that

saying

the Railroad
action

Committee

CLEARANCE FACILITIES

E. W. CLARK & CO.

Columbus,

would be sent to the Railroad Ad¬

bringing the whole carrying in¬

be

easily determined
by competent authority."

PHILADELPHIA

1100

CHICAGO

pres¬

will

railroad

increased or the cost of living re¬
dustry under the dominion of the duced, steps would be taken look¬
employees served to arouse pub¬ ing to the enforcement of the de¬
mands.
The Railroad Shopmen
The
Brotherhood
men
con¬
lic attention to what was
going were also
tended that the members of the on and
asking concessions of
resulted in the defeat of
various kinds, including a request
Brotherhood were really earning the
scheme.
The unions saw op¬

which

Established, 1896

PHONE

necessaries

we

the

of the
country by the employees, Grand
Chief
Stone's
petition
to
the
President proved only the prelude

re¬

granted an in¬
in wages to meet the de¬

terioration of

1421

to

figure that the

urge

1953
crease

BELL

of

take

to

measures

of the

cost

complete domination and

struggling

are

Government

ent wages and income of the
peo¬
ple will meet. Should this not be

1967

(cpn.) 3.3s

people

the

Heyden Chemical Co.
Tacony Palmyra Bridge

confidence in the ef¬

ficacy of his

Warren S. Stone

-We have

growing ad¬
Grand Chief

in

increases

have

but

request

the

wages

ren

the laboring world

would

from

Stone's attitude regarding the bar¬

—and declared that they felt that

con¬

of

in

vances

appeared the first glimmer

sense

dawned

relief

of

they

went

compensation

with

Brotherhood

The

that

mounting cost of living."
They
further, however—and here

a

Board

matter

life."-

found, them¬
selves obliged "to again request
an increase in wages to meet the

Cabinet," with
"increasing costs

pointed

to say

on

Federal Deposit Insurance
Corp.

provide

a

body of the proper con¬

stitution, authorized to investigate
and

determine all questions con¬
cerning the wages of railway em¬
ployees, and which will also make
the decisions of that body manda¬
tory upon the rate-making body,

Established 1910

and

Butcher

Sherrerd

&

Members New York Stock

Montgomery, Scott
MEMBERS
New

York

Stock

Exchange

New

York

Curb

Exchange

123

Chicago

STREET

120

—

Philadelphia Stock Exchange

Board

of

Trade

Exchange, Inc.

PHILADELPHIA,

New York Curb Exchange (Assoc.)

CORPORATE TRADING DEPARTMENT

A. H.

Fenstermacher

NEW




YORK

2-0775

Director-General

Hines, in his communication, had
urged that any general increase to
shop employees would result in
demands
for
corresponding in¬
.

ployees. Viewed

Edward W. Kling

REctor

and
operating

wages

class of
situation,
therefore, he asserted, could not
be viewed except as a whole for
the entire 2,000,000 railroad em¬

MUNICIPAL TRADING DEPARTMENT

PHONES:

any recom¬

in

to every other
railroad employees. The

BROADWAY

NEW YORK

cover

increases

the railroads."

creases

James J. McAtee
"William J. Nichols

PA.

mended

therefore in the cost of

Exchange Xi

OP

Commodity
Philadelphia Stock Exchange

SO. BROAD

& Co.

provide, when necessary, in¬

creased rates to

George S. Burgess

as a

increase

of

meant

increase of

an

one

whole, every
an
hour
$50,000,000 a

cent

year
in operating expenses for
straight time, with a substantial

PHILADELPHIA

Pennypacker 7400

addition

for

necessary

overtime.

The increase of 12 cents per hour
asked for by the shop employees
1500

WALNUT

STREET

•

PHILADELPHIA 2, PA.

Philadelphia Telephone

Teletype

Pennypacker 2700

PH 4

New

York

Telephone

Barclay 7-4641

would, if applied to all employees,
mean
(including necessary ov®r"
time)

an

$800,000,000

of

increase
per year

(Continued

on

probably

in operating

page

1105)

Number 4418

Volume -162

the commercial & financial chronicle

benefited

The First Year After World War I

benefit.

not

represent the pub¬

lic, five to be elected by the
operating officials, and five by
the classified employees.

to

stand," and embodying
propositions of their
own for
dealing with the matter.
They said: "Our proposal is to
most radical

operate

the

railroads

affairs, the. nation has

ticipated in

a

world war."

per-

They

added: "President Wilson declared
in

his

for

the

May 20, 1919
democratization

of

message

'genuine

of industry,
based upon a full
recognition of the right of those

work, in whatever rank, to
participate in some organic way in
every decision which directly af¬
fects their welfare in the part
they are to play in/industry.' He
Frederick H. Gillett
spoke plainly in behalf of a 'genu¬
ine cooperation and partnership
the House had proposed to take based upon real community of in¬
with the consent of the Senate terest and participation in con¬
(which was engaged in discussions trol.'" The employees then'went
of the Treaty of Peace), beginning on to demand Government acquis¬
August 2 and
continuing until ition of the railroads and their
September 9, be postponed until operation on a profit-sharing basis
for
the
benefit
of
a later date.
employees.

once

and

different Brotherhoods.

tems and

surplus at

On Aug¬
6, 14 of the principal railroad
unions, acting as a unit, presented
to

Mr.

Hines

their

demands

increased wages, at the

expressing
the

3. Equal

their

President's

for

time

same

disapproval

the end

after operating

visions

of

bill

the

4.

had

instructed

been

at

Atlantic

over,
in a letter from Senator
Cummins, received on August 7,
the President was advised that

City the previous June 17 to co¬
operate
with the
organizations
representing the railroad employ¬
ees.
This it had done, and Samuel
Gompers, President of the Amer¬
ican
Federation
of
Labor, was
Honorary President, and Warren
S. Stone, head of the Brotherhood
of
Locomotive
Engineers,
was
President

the

of

Plumb

while

the

Senate

Committee

Inter-State Commerce

of the situation, it felt
Congress had already given
Executive
"complete
and

the gravity
that
the

plenary authority to deal with the
existing situation and that addi¬

Plan

as

(Continued

"Labor's bill."

on

1106)

page

Issues

Automatic

reduction

of

5.

operation

Regional

as

to

extensions at
the
communites

& (En.

Philadelphia Stock Exchange

STOCK EXCHANGE BUILDING

PHILADELPHIA 2, PA.
Philadelphia

of

of

expense

Members of

a

unified system.
6. Building

Gkn. it. gmijiier
Bell

Telephone

Rittenhouse

New

Teletype

•

PH

0308

220

York

Telephone

HAnovcr 2-4552

recommendations

that

a special Federal Commission
be constituted to settle the prob¬

lems
of

arising out of the demands

the

railroad

workers.

They

STATE & MUNICIPAL

also asked that the Director-Gen¬
eral

the

endorse

so-called Plumb

Plan,

providing for Government
ownership of the railroad systems
of

the

with

country

a

share

BONDS

in

We

their management and

the workers, as

profits for
embodied in a bill

sentatives

on

dealers

August 2 by Repre¬

sentative Simms.

employees

blocks

on

pennsylvania and general

securities

of

market issues

In their letter to

Mr. Hines they declared that rail¬
way

solicit correspondence from
Specializing in

placed before the House of Repre¬

entitled

were

for

suitable

retail

distribution.

to

compensation which would at least
re-establish the pre-war purchas¬

Established

1844

ing

power of their wage.
They
would not admit that rates of pay

W. H. Newbold's Son

to

employees and transportation
charges were in any way corre¬

lated.

"Minimum

rates

should be sufficient

to

to the most unskilled

adequate living

of

employee

an

amounts as will meet
the necessities incident to old
age,

injury,

sickness and death, and
higher rates based upon the skill,
responsibility and hazard required
and involved.
Also these wage
rates should be such
pare

as

favorably to the

BATTLES & COMPANY

will

& Co.

York Stock Exchange
Philadelphia Stock Exchange
New York Curb Exchange (Assoc.)
New

Philadelphia

1517 Locust Street

2, Pa.

INC.

with such

wage,

additional
•

Members

pay

guarantee

1528 WALNUT

BROAD

90

STREET

STREET

Philadelphia Telephone

Pennypacker 1234
NEW

PHILADELPHIA

YORK CITY

Bell System

New York Telephone
Bowling Green 9-2210
Teletype—PH 44

com¬

wages

paid

for similar service in other indus¬
tries. '

They could not sanction

UNLISTED

the

plan proposed by the Direc¬
tor-General and approved by the
President
for
a
Congressional

Committee, for the

reason

that it

meant months of

Railroad, Public Utility and

delay at a time
when the questions involved reqiured
immediate
settlement.

Industrial

SECURITIES

Dealers Exclusively in

MUNICIPAL BONDS

With reference to the Plumb Plan

embodied in the Simms Bill, they
urged that if enacted into law it

We

are

interested

in

block

offerings

securities either for our own

would

give
to
the
Inter-State
Commerce Commission its orig¬

through

our

of listed and unlisted

account or for distribution

organization.

inal

authority over transportation
rates, and employees could not
hope for increases in rates of

except
omy

as

and

due to their

In

own

collective efforts.

the' meantime,

however-—

and this proved the most
disturb¬
ing development of all, because
it

ESTABLISHED 1914

pay

they resulted from econ¬
efficiency in operation

BOENNING & CO.
MEMBERS

disclosed

so plainly the purpose
object in view — the four
brotherhoods of railroad employ¬

ees, with the ten affiliated railway

organizations
of
the
American
federation of Labor, claiming to




CURB EXCHANGE (ASSOCIATE)

1606 Walnut Street

and

PHILADELPHIA 3, PA.
PENnypacker 8200
Race 3266

A. Webster Dougherty &

PHILADELPHIA STOCK, EXCHANGE

MEMBERS NEW YORK

on

recognized

of surplus,

employees' share
of surplus is more than 5% of
gross operating revenue.

The pro¬

presented

of

division

rates when the

of each year

paid.

body for dealing with wages and
rates, the President did not urge
the suggestion any further. More¬

Labor

of

Gompers

public and the employees.

costs had been met

and fixed charges

added

Federation

paying fixed charges and
operating
costs,
between the

share for labor of the

a

Simms

that the Executive Council of the

after

a

ust

.

Transportation Co.
Samuel

President's proposal,

of

In view of the -attitude of the
railway r unions
regarding
the
President's suggestion of a special

Philadelphia

how¬ Among other things which the
brotherhoods now demanded were
special Board to deal at
with the question of wages representation on a directorate of
rates did npt appeal to the 15 which should operate the sys¬

The

,

the

American

characterized

who

ever,

proportion to

League, formed to urge the Simms tional legislation at this time can
nothing whatever to your
Bill before the country. As a mat¬ add
In the
ter of fact, in a statement issued power in the premises."
meantime a considerable number
on August 4 at Washington by the
Railway Brotherhood leaders, set¬ of railway employees had gone on
ting forth the demands of labor strike, against the advice of their
respecting a change in industrial national leaders. Accordingly, the
management and policy, the pro¬ President the same day (August
posed legislation for the reorgani¬ 7) addressed a letter to Mr. Hines,
zation
of
railroad
management authorizing him to say to the rail¬
shop employees that the
embodied in the Simms Bill was road

democrati¬

cally, applying the principles to
industry for which, in interna¬
tional

in

r

Representative

(Continued from page 1104) *! represent altogether 2,200,000 Congress on behalf of the four
were
outlined
expenses. It should be added that workers, had on August 2 issued brotherhoods
by
statement at Washington an¬ Representative Simms as follows:
the President considered the rail¬ a
road wage situation so serious that nouncing that they were "in no
1. Purchase by the Govern¬
on
the same day (August 1) he mood to brook the return of the
ment
on
valuation
as
deter¬
lines
to
their
former
also sent a letter to Speaker Gilcontrol, since
mined finally by the Courts.
all
the
lett of the House of Representa¬
plans suggested for this
2.
Operation by Directorate
tives and Majority Leader Mon- settlement of the problems leave
of 15, five to be chosen by the
labor
dell, asking that the recess which
essentially where it has
President to
stood and where it is determined

1105

Bell System
PH

Teletype
30

New York Telephone
COrtlandt 7-1202

philadelphia

Co.

laid

was

Vif

consid¬
Direc¬
tor-General himself, but only in
conference
with their duly ac¬
would
ered

taken

be

on

up

and

its merits by the

a

threat

a

strike

in

force

to

order

the

] adoption of the ideas embodied in
Plumb

the

proposition. The atcredited
representatives.
The j tempt to influence legislation by
President at the same time stated such reprehensible methods met
that "concerned and very careful

is

consideration
the

by

given

being

the

to

Government

entire

question of reducing the high cost
of living."
The statement given out by the
four Brotherhoods on August 2
•

and

joined

by

in

Federation

the American
declaring

Labor

of

"in

that railroad employees were
no

mood

to

brook

of

the return

the lines to their former

control,"

expressing adherence to the
Simms Bill embodying the Plumb

and

turning the operation of
the roads over to the employees
and their unions was construed
Plan for

with almost universal condemna¬

the press and
from all
quarters. Accordingly, the heads
of the different railway organi¬
tion

on

the part of

evoked indignant protest

August 9 thought it
best to issue an explantory state¬
zations

ment

on

labor's stand on
In this they de¬
clared
that
"in
proposing
the
elimination
of
capital
and the
tripartite directorate we have no
purpose of intimidation," and say¬
ing, "we appeal to the states¬
manship of America and to the
regarding

the Simms bill.

sense

common

of American

hood and womanhood.

man¬

To prevent

DIRECT PRIVATE WIRE

that

assertion

scheme

the American Federation with the

after

that

same

of the

Council

extended

the President

which

Federation
three days,

over

had

concluded

"We

this it was presently to
that they had gauged pub¬

sentiment

and

the

the

Administration

ton

aright.
the

cost of

be inclined
of

cause

on

labor
so

to

espouse

unions

many

ferred

occasions in

past, but he was nevertheless
proceeding to aim a body blow

to

from

would

REED, LEAR & CO.

15

only

further

of

Branch

labor.

hour and

X

Offices:

MEADVILLE, PA.

It

•

hour

an

PITTSBURGH

pi

sued

on

with

a

will

serve

to result in still

the

costs

men

63

and

68

cents

hour.

In statements is¬

day by him,

report

by

eral of Bailroads

along

Director-Gen¬

Hines, emphasis

lowered

there

tions

of

production and of

[here

settled

are

the

so

condi¬
com¬

President

took

of the opportunity to
the Senate to action on the

spur

Peace

re¬

per

be

as

advantage

of

demanded 85 cents

now

that

had been

certainly

soon

merce

The

cents per

WASHINGTON, PA.

cents

increasing

ceiving 58,

!pf

27

production and therefore the cost

Members Pittsburgh Stock Exchange

\H

to

are now everywhere
concerted and carried out.

being

that the demands of the railway
shopmen for increases amounting

4

potent

efforts which

new aspirations.
On Au¬
gust 25 Mr. Wilson made it plain

'j! ti

very

indeed," but added:
is, the cost of living has
certainly reached its peak and
will probably be lowered by the
"The fact

at their

H

"a

as

argument,

he

as

this

to

the

samuel k. phillips 6- co.

•

..

ESTABLISHED

Treaty], that is, so soon as
of Peace is ratified

operation, and merchants,
manufacturers, farmers, miners,
all have

tion

as

would

a

certain basis of calcula¬

to
be

what
and

their

what

business

the

condi¬

tions will be under which it must

MEMBERS

Members Philadelphia Stock Exchange
>

Continuing

in this
pointed out

President

that the demands of the
and all similar demands

shopmen
in

were

effect this:

"That

we make
increases in
which are likely to be
permanent, in order to meet a

wages,

temporary situation which will
last

nobody

how

long,
bility only
Increases

can

but
for

certainly tell
in

all

proba¬

limited time.

a

in wages

certainly

over,

will,

result

more¬

in

still

further

increasing the cost of
production and therefore the
cost of living, and we should
only have to go through the
same
process again.
Any sub¬
stantial

increase

of

in

wages

leading lines of industry at this
would

time

utterly crush
campaign
which

general

is

Government

vigor

energy,

.hope of

the
the

waging,
and

with
substantial

to

reduce the

success,

high cost of living. And the in¬
creases
by the cost of trans¬

portation which would neces¬
sarily result from increases in
the wages of railway employ¬
would

more certainly and
immediately have that
effect than any other enhanced
ees

more

Only by keeping
production on its

costs.

wage

the

of

cost

level,
by
increasing
production and by rigid econ¬
omy and saving on the part of
the people,
can we hope for
large decreases in the burden¬
some
cost of living which now
weighs us down."
present

In conclusion the President

the

pressed
"to

that

belief
it

circumstances

thoughtful

every

be

would

ex¬

in

the
clear

American,

including the shopmen themselves
when

second

taken

have

they

thought, and to all wage-earners
of every kind, that we ought to

between

11

V'

the

6,194s

postpone questions of this sort till
normal conditions come again and
\ve have the opportunity for cer¬
tain calculation as to the relation

Lilley & Co.

1904

strain

Treaty

and in

-<$>

It

be conducted."

fall

must

the

deepest sympathy with

labor and

which

taxation

of

urged in support of their claims
very serious increase in the
living. The President re¬

Washing¬

The President might

the

we

upon the people of the country
in general."
The shopmen' had

attitude of

at

corporations merely;

in effect determining the bur¬

den

all

In

appear

lic

the proposition.

on

issue,

the

not studying the balance

are

sheets of
are

action

determining

in

that,

final

defer

to

dealt with the de¬

mands of the shopmen and stated

namely

August 28, 29 and 30, announce¬
ment came saying that the Coun¬
cil

other to the
In the latter,

the

public in general.

Executive

the

and

shopmen

in

conference

a

of

Washington

on

men

identification of

the

and

representatives of the shop¬
August 25 the President
issued two statements, one to the

with

Plumb

the

against

an

this, it subsequently

Even

developed, would add $45,000,000
to the annual payroll of the rail¬
roads.
Following
a
conference

parite control." It was significant
of the hostility that had rapidly
developed

additional

cents

4

shopmen
hour.

the

NEW YORK CITY

•

impress

to

none

Administration

the

the public by violence or by
threats our proposal that the rail¬
roads be nationalized under tri-

had done
-t

had

have

and

of other railroad employees,
awarded the

pay

have no desire

we

upon

have

V

hand, in an endeavor to effect an
adjustment of the wages of shop¬
men
to conform to
the basis of

the

on

asked for
On the other

met.

not be

could

part of the any misunderstanding as to the
union leaders to tie up the rail¬ policy of the organized railroad
road system of the country with employees we unite in a definite
as

the fact that the de¬

on

mands for the increases

The First Year After World War I
(Continued from page 1105)
question of wages they had raised

Thursday, September

FINANCIAL CHRONICLE

THE COMMERCIAL &

1106

PHILADELPHIA STOCK EXCHANGE

and the cost of
the duty of every
country to insist

wages

living.

It

is

citizen

of

the

truce in such contests un¬
intelligent settlement can be
and made by peaceful and

upon a

til

i

made

PUBLIC UTILITY

44
Til

—

INDUSTRIAL

—

effective

RAILROAD

REAL ESTATE —TRANSIT

mands

cautioned

Yr> i:

of

UNLISTED SECURITIES

BANK AND INSURANCE STOCKS

i": :•; 3
p t a

Hi

the

country
and

bring

about

to

nothing else
to

contribute

the

Philadelphia Real Estate Issues

v

intended

statement

his

which is

Packard Building,

Philadelphia

Bell System Teletype

New York

Philadelphia 2, Pa.

BITtenhouse 1700

PH 375

BEctor 2-0037

4-

and
prosperity,
of our people

Exchange Place, New York 5, N. Y.

kind back to

after

Industrial

process." The Presi¬
hestitate to say that
"efforts to bring the cost
living down should fail, after
not

have

we

tablish

Markets in

blunder

the

of

SECURITIES

if we

us

war

the

than

greater
upon

dent did

if
•

normal basis

fail in the

or

alfred m. dick

Railroad

a

greatest

finitely
brought

Dealers and Brokers in

•

got

upheaval known to
history, and the winter just ahead
of
us
mav
bring suffering in¬

'■ ?!•:

Utility

We have now

nothing less than bring our
industries and our labor of every
the

-4

Public

itself.

war

and
than

to do

Branch Office:

40

the

a

the life,

even

0,

the shop¬

"we
situation
likely to affect the

face with

more

happiness

1315 PACKARD BUILDING, PHILADELPHIA
2, PA.

to

the President told them
face to

are

Main Office:

res""j

very

remedy."
In

men

>(

as

thus

could

All Issues

•

made and pas¬

unwisely

which such demands are

Philadelphia Transportation Co.

I-'!-:

that

sionately insisted upon at this time
menace the peace and prosperity

ISSUES
,

The
"de¬

counsel."

common

President

had

time enough

either

success

or

to es¬
failure,

to
living
permanent basis of adjust¬
ment, and railway wages should
be
readjusted
along
with the
it

will, of

be necessary

course,

accept the higher costs of

New Jersey and General Market Municipal Bonds
Electronic

and

Guaranteed

Television

and

Equipment

Leased

Trust

Securities

Line

as

Local Securities

rest."

Stocks

and

Obligations

Insurance

★

All that

he

was

now

urg¬

insisted, was that 'we
should not be guilty of the inex¬
cusable inconsistency of making

ing,

★

Bank

a

★

Stocks

he

general increases in wages on

the

assumption that the present cost
living will be permanent at the
very time that we are trying with
great confidence to reduce the
of

Charles A. Taggart & Co.

Lewis C. Dick Co.

cost of

1420 Walnut

Investment Securities
PHILADELPHIA




that

it

living and
is

able to say
beginning to

are

actually

fall."

1500 Walnut Street, Philadelphia 2

KINgsley 1716

Street, Philadelphia 2, Pa.

Pennypacker

NEW YORK
REctor 2-0037

1787

Bell System
PH

Teletype

President finally ventured
opinion that legislation deal¬
ing with the future of the rail¬
The

the

205

Race 5596

roads would

(Continued

vwra

-V

^

.-.4

in

explicit terms

on

page

1107)

ai-

Number 4418

162

Volume

THE

COMMERCIAL

& FINANCIAL CHRONICLE

The Fiist Yeai After World War I

ministration

was

taking, they both

which

advised all members of their
re¬
spective unions that a sympathetic
strike would not be
countenanced
and indicating the
penalties that
had been visited
upon offenders
who had engaged in
unauthor¬
ized strikes.

the

(Continued from page 1106)

11071

to

to

influence the decision of ques-

cases

without

deed

some

disturbing.
kind

importance, and in¬

of them

proved quite
instance of this

An

occurred

in

out

California
August, just about the time the
Railroad Administration was en¬
in

grossed in the consideration of the

railway shopmen's demands, and
the identification of

the brother¬
hood and other
railway organiza¬
tions with the Plumb Plan for the

"democratization" of the railroad
industries.
A strike of the em¬

ployees

of

the

Pacific

Electric

Railway, controlled by the South¬
Pacific, but not under Govern¬
ment
operation, led to a sym¬

ern

pathetic

strike

of

workers

on

ernment

controlled

the

certain

of

railway
the

Gov¬

lines running
Angeles—the Southern
the Santa Fe and the

out of Los
John

J.

Esch

Pacific,

tions

arising between the man¬
of the railroads and the
railway employees. The employ¬
agers

rest assured that during
my term of office, whether I am
in actual possession of the rail¬
ees

1

may

roads

or

exert

the

not,

I

shall not fail to

full

Executive

to

influence
that

see

of

the

justice

is

done them."

The

most

about

that

the
it

that

quickly

his

would

encouraging

President's

feature

action

was

became evident
to 'the shopmen

appeal

be effective.

Salt

Lake

lines

Government

—

operated

and

caused

by
the

complete

tying up
of railroad
operations in parts of California,
Arizona
strike
some

Hines

and

had

Nevada.

been

in

After

for
General

progress

days,
Director August 28 issued

on

ultimatum

to

the

the

an

strikers,

com¬

manding them to return to

work.

After

pointing out that the

adjustment of all causes of
complaint in an orderly manner
without suspension of work, Mr.

Hines

notice that

gave

all

who

one

interfered

with

be

committing

the

ingly.
this

and

This

derived

and

would

The

strikers

encouragement

officers of
Brotherhoods from

Railway

of

the

the

usual

Brotherhood

any

a year

submitted

to

road

Administration, in submit¬
ting this proposal, announced that
the policy adopted the previous
August of not considering in¬
creases
in the general level of
railroad wages until a reasonable

opportunity had been afforded to
ascertain the result of the efforts

(Continued

on

page

1108)

Railroad, Public Utility and Industrial

was

SECURITIES

of

that,

not author¬

penalties

of

accompanying

action

the

ESTABLISHED

the

Chief

Locomotive

neers,

got

knowledge

ance

attitude

of

the

the

1872

the

HOPPER; S OLiDAXc .Co.
MEMBERS

PHILADELPHIA* STOCK EXCHANGE

strikers
142 O

might take." When, however, Mr.
Lee and
Warren S. Stone, the

which

was

Lee,

stating

of

alleged,

G.

Brotherhood

Grand

or

the

unauthorized strikes would not be
exacted in this case in connection
with

$36,000,000

or

payroll,

UNLISTED

Railroad

W.

hood

being presented

in

the

Trainmen,

"while the strike
ized

month

a

the

representatives of the four big
Railroad Brotherhoods. The Rail¬

yet they repre¬

August 24 by Los

Angeles

President

to

had

stages of the movement
from a telegram claimed to have
received

slow freight service, and which it
estimated would add $3,000,-.

000

be

early

been

higher

was

a

prosecuted accord¬
proved sufficient in

instance.

a

offense against

an

United States

arrested

satisfactory

We invite inquiries in

im¬

or

at all

November

of the earnings of the rail¬
train service men engaged in

way

considerable sum in the
aggregate. We have already re¬
ferred
to
the
wage
increase
granted the railway
shopmen, and

peded the running of trains would

ployees on the steam railroads
had quit work without
any griev¬

em¬

strik¬

ing employees who did not report
for duty by August 30 at seven
in the morning would be
regarded
as
having terminated their em¬
ployment and their places would
be filled. Not only
that, but any¬

Director-General,
sented

tion

In

scale, embodying equaliza¬

wage

foregoing. There were special and
stating that the action of
ford adequate protection for the wage
increases, but no general these strikers was a violation and
interest of the employees of the ones, and the special increases
repudiation of the agreements be¬
roads, but, quite apart from that, were mostly claimed to be by tween the
employees and the rail¬
it was clear that no legislation
way of adjustment. Unauthorized roads
upon which
they worked
could make the railways other strikes, that is where the men
There were a number of
and also of the national
wage
agree¬
than what they are, a great public quit work without the sanction ment
adverted
between the U. S. Railroad adjustments
to
above.
interest, and it was "not likely that or in direct opposition to the
While the amounts involved in
Administration
and
the
chief
of
the President of the United States, wishes
their
leaders, were executives of the organizations to none of the cases were of the
whether in possession and control summarily dealt with. These un¬
prodigious
which the strikers
magnitude
of
the
belonged, such
of the railroads or not, will lack authorized
strikes, while of spor¬ national agreement providing for wage increases made the previ¬
opportunity or persuasive force adic occurrence, were not in all the
ous year when Mr.
McAdoo was

not

was

them.

Brother¬

Engi¬
of

Railroad

WALNUT,

STREET^

PHILADELPHIA
Telephone—Pennypacker

4075

Bell System Teletype—PH 593

the
Ad-

While it had

been
decided on August 26 to
put to a vote of the local unions

the

question of accepting or re¬
jecting the President's appeal to
the shopmen to defer their de¬
mands

for

higher wages,

communication

to

the

later

a

local

n-

TRADING

ESTABLISHED

ions, by the heads of the organi¬
zations
involved,
issued
on
August 28, recommended that the
question
left in

of

the

suspending
hands

of

the

BIOREN & CO

DEPARTMENT

un¬

PHILADELPHIA 2, PA.

CORPORATE

work be
officers

Members

EDMUND J. DAVIS

New

of these

organizations, "with the
understanding that no strike order
will be

absolutely

necessary

the conditions

meet

New

York

York

Stock

Curb

Philadelphia

issued unless such action

becomes

18C5

1508 WALNUT STREET

Exchange

Exchange
Stock

MUNICIPAL

to

RUSSELL W. SCHAFFER

TRADING DEPARTMENT

arising from

the present
situation, or joint ac¬
tion with other railroad

Railroads

organi¬

zations

for

crease."

gust

a

general wage in¬
instructions of Au¬

The

28, which

in

were

much

a

RAMBO, KEEN, CLOSE & KERNER, INC.

more

conciliatory tone than those
issued August
26, also stated that
"it is our honest
judgment that a

fatal mistake
our

would

members

to

be

made

assume

the

by
re¬

1518 Locust

Street, Philadelphia 2

sible

to

evidently doing all
reduce

the

-

Thomas

B.

Krug

-

Real Estate Bonds

Russell

M.

Dotts

-

Municipal Bonds

Public Utilities

Bell

New York—REctor 2-2820

PH

System
PH

Pennypacker 9400

T eletype

2800

63

Private Phone W. E. Burnett &

up the rail¬
roads at this time when the
Presi¬

is

Frank L. Whitley

Telephone

T elephones

Phila.—Pennypacker

sponsibility of tying
dent

(Assoc.)

Exchange

Teletype

574

Co., N. Y.

HAnover 2-9438

pos¬

high cost of

living."

The instructions to the
local shopmen's union on
August
26 had
been sent out after Direc¬

tor-General

of

Railroads

Walker

D. Hines had
been advised by rep¬
resentatives of the railroad
shop

craft committee of
100 that "know-

iv ,^en^ment
the

ship,'

of

the

committee

accept

as

basis

a

of

member¬
could

not

Over

-

the

-

Counter

II

c

Invite

Inquiries

settlement

the rates
established in his propo¬
sition

submitted by the Presi¬
Previously a vote in favor
strike effective
September 2
had been
taken and it was stated
dent.

.

.

.

Securities

a

on

August

26 that 95% of the

r®gistFed in favor of a
Prestoent's overtures
ted

at4

sod

to

set aside

to

put

men

the

men

strike,
oper-

this strike vote

question

to

the

anew,

oide

who then agreed to
by the President's decision,

ne

unauthorized strikes
nopmen in different

of

For

the

ailroad
y

the

*

gradually

NEWBURGER & HANO
Members

aban-

New

York

Stock

the

parts of the

WGrG

doned

E. W. SMITH CO.

New York Curb

and

Exchange

of

the

year

Administration,

the

.backed

President, consistently ad-

ered to the
policy laid down in




*

{I1

LEWIS TOWER BUILDING
PHILADELPHIA

NEW

2

.1419 Walnut Street

PHILADELPHIA 2

Telephone Pennypacker 8383

Teletype PH 25

HARRISBURG

LEBANON

39

YORK

CITY

6

Broadway

HAnover

ATLANTIC

I

;>■

(Associate)

LOCust 6200

rest

'>*-

Philadelphia

Exchanges

»l
V

2-5300

SCRANTON

i

Thursday, September 6, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1108

ber

The First Yeai After World War I
paid.
Returns compiled by us,
covering the returns filed with
the Inter-State Commerce Com¬

(Continued from page 1107)
of the Government to reduce the
cost of living, had not been de¬

railroads having

parted from,, and that the pro¬
increase was merely with
the view "to correct unjust in¬
equalities as between different

mission

classes, of railroad labor."

for the twelve months of 1919,

' demands,
pouring in, and

an

New

,

kept
on November 28
the general chairmen of the Bro¬
therhood

of

Locomotive

and'Enginemen,
Cleveland

at

of
an

Firemen

of $401,609,745, net
for 1919 was $143,479,608 smaller
than for 1918, and this came after
a loss in
1918, as compared with
1917, in the huge sum of $284,771,620. These are the results be¬

demands of their organization for
a

increase

wage

Their

demands

sented

the

to

of

40

had

to

45%.

been

pre¬

Railroad

Adminis¬

tration in

September, but

had

received.

been

hood

of

fore

reply

demands

the cost of living.
From what has been said it will

Nor

an

under

easy

one.

railroad

developments
favorable in other respects. With
were

railroad
mount

with

and

backs,

continuing
to
with other
railway employees

wages

upward,

concessions

to

and

other

numerous

draw¬

further large augmenta¬
tion
in
the
expenses
occurred,
still further diminishing the net

4

remained

cloud the whole year and

a

railroad

credit

continued

im¬

paired throughout. Entirely aside
from the direct loss incurred by
the Government in the operation
the

of

roads,
control

ment

continued
not

was

The service

with favor.

Govern¬
regarded
was

un¬

than under
private
control,
the
discipline
more lax, with a marked impair¬
income out of which the Govern¬ ment of efficiency and capacity on
ment guaranteed rental had to be the part of the employees. Outside
a

Henry G. fciaaes

questionably

V. J.

poorer

C. L. Ivey

Aycock

Local and General Market

Issues
Dealer

who were naturally
perpetuate and extend
these benefits to themselves, there
and

roads,

ment in favor of

was

Government

the

tel.

control at

in

with

Federation

of

and

way
The

efit.

received

the

even

it

reduced
seemed

ready
the

little, since they them¬
engaged in a move¬
ment
to obtain
a
further large
increase in their wage scales and
thought that the support of the
a

•

<9

inclined to frown upon

was

In

on

but this

State Commerce,

Inter-

was

not

until December 20. The President
then

stepped in and gave Con¬
two months more of grace
perfect the necessary

gress

in which to

dent fixed March 1

"The
over

railroads

to the

will

be

at the

owners

the date for

as

directors

Government

time to elapse be¬
issuing of the procla¬
mation and the date of its actually
taking effect." Therefore, trans¬
fer of possession back to the rail¬
road companies was fixed so as to
the

March
upon

the

with¬

of

reasonable

tween

become

end of the calendar year."
Of course, it was not possible to
turn the properties back to their
and

termination

the

effective

1, 1920.
Houses

a.

m.

depended
the part of

now

the conferees

two

12.01

at

It

on

of

Congress

to

legislative provision
that would permit the step, since

reconcile the differences between

two years of Government
opera¬
tion had so completely altered the

promise

entire

not

making

railroad status that

it

the

two bills

and

submit

a

com¬

This

proved a
long and difficult task, and it was

was

measure.

until

Feb.

compromise

question to hand them

18,

bill

1920,
could

that the
be

sub¬

willy-nilly.
The President mitted to the House of Represen¬
hoped that by giving the legis¬ tatives, which then set Saturday,
lative body long notice in advance Feb. 21, for action upon it, when
of his intentions it would have it passed that body by the decisive
ample time to perfect the needed majority of 250 to 150, notwith¬
legislation. But Congress dilly¬ standing vehement opposition on
dallied

and

tinated

so

delayed and

that

with

no

the

year

new

acts

procras¬

actually

bor unions to the labor

the

on

the part of the American Federa¬
tion of Labor and the railway la¬
in

the

bill.

The

statute books for dealing with the

passed the bill

matter.

of

It

was

not

until

Novem¬

similar

provisions

Senate

Bell

in

turn

Feb. 23 in face

on

opposition

on

& F. CASSELL & COMPANY

the part

Teletype 86

Charlottesville, Va.

Lynchburg, Va.

112 Second St., N. E.

609 Krise Building

Phoiics «JG ftnd 83(>

Scott, Horner & Mason, Inc.
LYNCHBURG, VIRGINIA
Municipal Dept.

★

★

Ai- ML LAW & COMPANY

-

-

West Virginia
-

-

South Carolina
■'

'

'•

.

'

.

*.■

.

**'

_

~

Municipal Bonds and Corporation Securities

out

in

strike

in

begun

on

of

Labor, which had
to

organize

and

bring

all

them

un¬

steel
under

control, thus carrying
long announced threat
that respect.
This was not a
their

strike

for

for

was

Steel

increased

the

gaining

the

purpose

United

Corporation

but

wages,

avowed

from

of

States

recognition of

labor unionism and the

of the "closed

compensa¬

tion) and advancement in position
regardless of merit; and some¬

times, by the dictum of the union
leader, called out and prevented
from working for days or weeks,
although he has no real grievance,
and he and his family are suffer¬
ing for want of the necessities of
life."
Judge Gary declared that
the country would not stand for
the "closed shop."
It could not
afford it, he said, adding, "in the
light of experience we know it
would signify decreased produc¬
tion, increased cost of living, with
initiative, development and en¬
terprise dwarfed. It would be the
beginning of industrial decay and
injustice to the workmen them¬
selves, who prosper only when
industry succeeds."

an

Judge Gary declined to
a

committee

union

of

receive

threat of

a

sent

men

to discuss the matter with

him on

non-compli¬

strike for

first because he did 'not be¬
lieve the men were authorized to
ance,

speak for large numbers of the
Corporation's employees, and sec¬
ondly because it seemed to him
that
a
conference
with
them
be

them as a
"closed shop
method
of
employment.,
The
President sought to prevail upon
treated

recognition

by

the

of

but

the effort proved unavailing. The
union men in control of the move¬

of very rad¬
John Fitzpatrick
chairman of the National

ment were made up

thinkers,

Organization
American

the

for

the I. W. W.
of

the

in

★

★

★

(Industrial Workers

World),

Richmond, Va.

;

Roanoke, Va.

-,

Charlottesville, Va.

Blueficld, W. Va.

who

some

written a

book
writ¬

had

"Syndicalism,"

entitled
social

revolution

of

together with

Teletype SPBC 17

and

collaboration with other

before

years

destruction

SPARTANBURG, S. C.

and the com¬

comprising among others
William Z. Foster, who had for¬
merly been active on behalf or

mittee

ers,

n'->




was

Federation

which

1892)

Bel|

it

was

Federation of Labor,

Virginia
*

■

which

meet with

of Steel Workers of the

North Carolina

Distance St

It

Committee

SECURITIES

(Established

substantially

The

industry

workers

being

A

SOUTHERN

Long

be

request

compliance.

dertaken

ical

' T

not

the leaders to defer the strike,

Corporate Dept.
Teletype LY 83

Teletype LY 82

f;

disappointed

first would

22.

would

Phone 6112

TEXTILE

at

eration

of Chairman Cummins,

the work

of the Senate Committee

a

a

brief but wholly unqualified

closed

•

hence

workers
affiliated with the American Fed¬

B. Cummins

Albert

over

Virginia Unlisted Stocks and Bonds

of
the

principle
shop." Judge Elbert
control. The statement given out
such projects, some radical prop¬
H. Gary, Chairman of the U. S.
agandists were talking wildly of by the President's private secre¬ Steel Corporation, took a firm
the impending nationalization of tary, Joseph P. Tumulty, in con¬ stand in
opposition to the prin¬
nection
with
the
proclamation,
both the railroad carrying indus¬
ciple of the "closed shop," point¬
after adverting to the message of
try and the coal mining industry.
ing out that it "means that no man
the President the previous May.
The President himself was never
can
obtain employment in that
indicating
the'
President's
inten¬
iri doubt as to public sentiment
shop except through and on the
tion to restore the roads to their
with reference to continued oper¬
terms and conditions imposed by
ation of the roads by the Govern¬ owners at the end of the calendar the labor unions. He is
compelled
year
1919, went on to say that "in to
ment.
While still in France, he
join the union and to submit to
the
present
circumstances,
no
took
occasion
when
the dictation of its leader before
addressing
Congress, which had been con¬ agreement having yet been he can enter the place of business.
reached
by
the
two
Houses
of
vened by him in extra session on
If he joins the union he is then
May 19, to notify Congress that Congress in respect to legislation restricted by its leaders as to place
on the
he had made up his mind
subject,
it
becomes
neces¬
of
ag to the
work, hours of work land
date when the roads should be sary in the public interest to allow therefore
amount of
public

out of the

ICIPALS

were

inaugurated at
the instance of the leaders of
the
unions of iron and steel

In
a
proclamation
railway employees might be use¬ legislation.
issued on December 24 the Presi¬
ful to that end. Indeed, before it
became apparent how severely the

events

matters

a

—

steel

Sept.

railway

were

and

living could

unions quickly began to

selves

notable

the

other concessions until he
had had
opportunity to see if the cost of

to

see that
nothing was to be gained by en¬
deavoring to push the scheme,
though the coal miners coquetted

in

the

abeyance for the time
being de¬
for
wage
increases and

and for their own ben¬
proposal was so coldly
that

the

labor

in

and

Feb. 28.

on

mands

the employees to operate in their
own

law

the later

to

over

ineffective,
a

the expectations raised in
August
when
the
President
requested
labor
organizations to hold in

All this

them

Among

months,

the

turn

this move

proved

bill became

steel
industry and
the bituminous coal
miners' strike
These both occurred in

bold proposition that the Govern¬
ment should acquire ownership of

the roads

also

1919

American
Labor made their

connected

vote beine

The labor unions
sought
to prevail upon the
President to
veto the
measure, but

strike

relinquish

early date.

an

^'®b°r "n,ions. the

47 to 17.

turn, passed a substitute measure,

pretty well established before
the
different
Railroad Brother¬
hoods
and
the
railroad
unions

out
2-6301-02

Senate,

was

shareholders

TWX-NF-Z32

The

there

desire

general

pretty

a

have

handed

BLDG.

radical and undesir¬

Government re¬

tention of the roads—rather

simply:

NORFOLK, VA.

some

features.

practically no public senti¬

was

manner, he announced his con¬
clusion
in
that
respect, saying

AYCOCK AND COMPANY

bodied
able

anxious to

very

For Local Markets

ROYSTER

so

returned to private control.

Inquiries Invited

618-620

profited

Government

with

securities

Railroad

running and administering the
not

and

deduc¬

461,738.

have been gathered that, the task
was

taxes

these

made, the remaining net in¬
fell
$377,037,622 short of
meeting the Government guaran¬
teed rental, which was very much
larger than even in the calendar
year
1918, when the loss to the
Government amounted to $169,-

the result of the efforts to reduce

of

of

With

come

time,
were
advised,
as
noted
above, that the time was not op¬
portune and that they must await

railroads

deduction

items.

tions

the

at

the

other

The Brother¬

Railway Trainmen, who

similar

made

no

an

expenditures

the

discussed

On the other hand,
augmentation in

of

because

about

and

as

1918, of $258,130,137, following
increase in 1918 over 1917 of

$863,892,744.

180 in
met in separate session

number,

earnings

increase in the gross

compared with the twelve months

however,

wage

all

by

gross operating revenue in excess
of $1,000,000 per annum, showed

posed

themselves,
much through
administration of the

of railroad employees

who had

17, shortly before the ending
long extra session, that the
House passed what was known as
the Esch Railroad Bill, which em¬
of the

the

*n

and the

system,
radical doc¬

wage

other

trines, was advocated. As ina£
eating
Chairman
Fitzpatrick
views, he was emoted as havin0
(Continued

on

page

1109)

Number 4418

162

Volume

THE COMMERCIAL &
FINANCIAL CHRONICLE

The First Year Alter World War I
(Continued from page 1108) J,

•

said, after the adjournment of the
committee meeting, on Sept. 18,
when a motion to rescind the ac¬

hands of
Oct.

an

outside

-6, -the

Conference

capital,

On

agency.

National

He

ers.

Industrial

of representatives

fixed

of

should not be

labor
and
the
public,
President
Wilson • had

promised,

,

Baltimore Security Traders. Association

declared

opinion

he

was

that

of

the

arbitrated,

nor

1109

or com¬

action

any

the

strike

taken

tion

which

ginning of the fight. We are going

of the
meeting of this industrial complishing nothing.
It
split,
conference, Samuel Gompers, the nominally on the question of col¬

previously taken calling the
by the Conference bearing upon
strike was vpted down, notwith¬ called some time before, to "dis¬ the subject. In the
end, the reso¬
cuss
fundamental
means
of bet¬ lution was
standing the President's request
defeated, the Employ¬
to that effect: "We are going to tering the whole relationship of ers'
Group and the Public Group
and
socialize the basic industries of capital
labor," opened
at voting against it.
The Industrial
Washington.
At
the
the United States. This is the be¬
very outset Conference itself succeeded in ac¬
representatives on the
Board} of Directors of the Steel
have

to

Corporation.
President
Wilson
has promised that, in effect, in his
program for the placing of indus¬
try on a better basis." In testify¬
ing before the Senate Committee
on
Labor and Education, which
undertook an investigation of the
causes
of the strike, Chairman
Fitzpatrick
admitted
that
the
strike

called

was

the result of

as

referendum vote in which only

a

100,000 of the 500,000 steel work¬
which he sought to involve in

ers

Chairman of the Labor Group, in¬

troduced

the
to

a

resolution

appointment
whom

should

settlement the

of
be

committee

referred

for

the

to

be requested

ment

the

to

return to work

feated

not refrain from

The

striking when re¬
quested by the President) and the
employers were to reinstate them

to

defeat.

rescue

of

the misled

steel

work¬

After being de¬
this issue and on the

on

Steel resolution the Labor Group

quit
next

the

Conference

Conference

on

Oct.

adjourned

22.

the

day.

ence

to

meet

ginning Dec.
ference
a

in

Washington be¬
The

1.

new

Con¬

called in response to
recommendation made to the
was

President by the Public Group of
the old Conference.
Unlike the

latter,

the

new

Conference

was

The number of steel workers who

far less

than had been

conflict

the

strike

it

was

certain

was

strike assumed

the

seen

fail.

to

Gary
had

steel

to

the

be

not made up

invitation, "should have

concern

that

b,e|

the people as a whole.

tice

persons were named

plants

called

the

out

KEYSER BUILDING

Seventeen

new

industries may

with

and

workman

body;
representatives,"
President, in his letter of

"all of the
said the

new

our

ducted

duced

con¬

such regard for jus¬

fair

dealing

will

feel

that

the

himself

in¬

to

put forth/his best ef¬
forts, that the employer will have
(Continued op page 1110), y

&

Co

Baker, Watts

BALTIMORE 2, MD.

Established

to

At

DEALERS AND

notwithstanding

Committee

of

the

BROKERS

Associate Members
-•

'

•

_

Commission Orders Executed On

Baltimore Stock

New

York-—REctor

2-8194

Pittsburgh, proclaimed a strike
at these plants, too (to go into ef¬
fect Monday, Sept. 29), after E. G.
Grace, the President of the Com¬
pany, had declined to accede to
a

" '

Exchange

served

2800

Bell System

absolute

fizzle.

strike

The

|

Curb

/.''•* :

Exchange
/

' '

Teletype BA 497

CALVERT AND REDWOOD STREETS
BALTIMORE 3
West Virginia Representative, Union National Bank Bidfg.

Clarksburg, W. Va.
New York Telephone:

Baltimore Telephone:

ther to demonstrate the weakness

affair, for the strike
Bethlehem plants proved

*■.•'.

Active Markets In Local Securities

fur¬

of the whole

New York
•

Listed and Unlisted Stocks and Bonds

Philadelphia—-Pennypacker

conference with

merely

•

Maryland County and Municipal Bonds

The outcome in this

instance

the

■

Baltimore-—SAratoga 8064

at

the unions.

i.'i

1900

Government and Federal Land Bank Bonds

Telephones

Iron

and Steel Workers, at a meeting

the demand for

Go.

Members New York Stock Exchange
Members Baltimore Stock Exchange

suppress

resulted.

successes

National

&

military

plants of the Bethlehem Steel Co.
were not included in the original
order, but on Sept. 27 the

an

groups.

by the Presi¬

dent to function in the

strike

at

of distinctive

all the conferees were
appointed to act in the interest of

Instead,

Members Baltimore Stock Exchange

tem¬
at the start, the
strikers quickly lost ground.
The
porary

last

William F. Coleman

Edward B. Freeman,
Lockwood, Peck & Co.; Treasurer: E. Elwood
McCIure, Stein Bros. & Boyce; Secretary: William F. Coleman, Harry
M. Sheely & Co.
r

important dimen¬

disorders which

points,

Harry M. Sheely

The

sions only in the West, and at the

all

E. Elwood McCIure

sup¬

posed might be the case, and with
the beginning of the second week
of

Bradley

the ranks of the strikers

joined
was

R. Emmet

President: R. Emmet Bradley,
Mackubin, Legg & Co.; Vice-President:

.

On November 20, the President
called a new Industrial Confer¬

were

foredoomed

was

employer.

(which npw, with
certain defeat ahead,
they were
willing to do, although they would

voted, though he in their former position.
Fortu¬
50,000 more nately, however, Judge Elbert H.
by the time the vote was counted. Gary was able to thwart this
In the end the strike proved a audacious move on the part of the
blessing in disguise, for after it Labor Group.
Mr. Gary firmly
had been inaugurated it quickly opposed the attempt to have the
became apparent that the move¬ Industrial Conference come to the
there

claimed

"butting in" and repre¬
senting workers banded together
under shop organizations and en¬
gaged in bargaining directly with

controversy. Pending
findings of the committee, the
were

on

Labor

questions at issue

in the steel

workers

bargaining, but actually

the right of outside organizations
like the American Federation of

had

strike

the

lective

proposing

a

CAnal 6-7162>

Calvert 6200

Teletype BA 395

MEAD, IRVINE & CO

leaders kept putting forth claims
of

important

.successes

end of the year,

put

of

iron

both

until

the

but while the out¬
and

steel

was

Investment Securities

substantially reduced in October,
the strike practically ceased to be
an influence after that month.
As

late

as

Dec.

13

and

Dec.

We maintain active
in

the

14

presidents of 24 unions connected
with

the

steel

Orders Executed

thing of the past.
til Jan. 8 of the

strike
It

It

new

not

was

to

be

un¬

that the

year

noticed

FIRST NATIONAL BANK BUILDING

Maryland and Kentucky Municipals

BALTIMORE 2, MARYLAND

Surety Guaranteed Mortgage Bonds and

that

early in October the leaders in the
steel

workers'

strike

BALTIMORE and LOUISVILLE OFFICES

STOCK EXCHANGE

BALTIMORE

officially called off.

was

deserves

on

industry voted to

cofitinue the strike, though it had
for some time been virtually a

Trading Departments
our

sought

to

all local securities

Telephone Lex. 0210

avert the defeat of the
movement,

which

hy

a

even

then

MEMBER:
was

BALTIMORE

EXCHANGE

STOCK

F. H. A. Insured

impending,

clever attempt to secure in¬

dorsement

of

their

cause

at

Mortgages

Commission orders executed

the

Baltimore Stock

on

the

Exchange

SteinBros.&Boyce

Mackubin, Legg & Company

Established

it

1853

ESTABLISHED 1899

6 S. CALVERT ST., BALTIMORE 2, MD.

Telephone: PLaza 8400

INSURANCE

STOCKS

STARKS BLDG. ARCADE, LOUISVILLE 2, KY.

Telephone: LD 180
MEMBERS

I

I
DIRECT

WIRES

TO—

PHILADELPHIA

NEW YORK CURB EXCHANGE (ASSOC.)

NEW YORK STOCK EXCHANGE

<

\ SAN

CRUTTENDEN

Yorlc, Pa.

CONRAD,

BRUCE

Hagerstown, Md.

Cumberland, Md.

YORK*

u

all

Washington, D. C.

ill

CO.

MEMBERS OF NEW YORK STOCK EXCHANGE

CHICAGO

&

FRANCISCO—LOS

%\

CO.

and other

ANGELES

leading exchanges

1:

Mi




8e

NEW

■

t» 1-

(«•••.* A

'*•••♦ A-'

♦ *t ** '■

'■

*-•

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(TK

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r.

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r

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—

•

n1110

THE COMMERCIAL & FINANCIAL

announced

was

agreement, it public interest becomes the para¬

to reach an

unable

Atlanta Bond Club

would

conference

which

subcommittee,

of

composed
two

miners

four

States

thus

to

would

Brooke

J.

Julian

Fleming Settle

R.

Hirshberg

1,

1920,

Dec.

President: Byron Brooke, Brooke, Tindall & Co.; Vice-President: J.
Fleming Settle, J. H. Hilsman & Co., Inc.; Secretary-Treasurer: Julian
R. Hirshberg, Norris & Hirshberg.

peace.

for

was

officially

and

for

The First Year After World War I
v.*'/

this strike at the soft coal mines.

(Continued from page 1109)

The

encouraging profit, and that
the public will not suffer at the
an

miners'

demands

formulated

at

the

Convention

of

the

had

been

International

work

Sundays

on

strike.

order,

The

calling

upon

and
in

class." This new
Conference, after having met on
the date set deliberated privately,

•v
More
strike

serious
was

bituminous
uous

efforts

than

the
coal

the

strike

were

steel

of

miners.
made

the

Stren¬

by

the

authorities at Washington to avert

United

Workers of America at

Mine

miners

un¬

strike

all

union

tion of the railroads. A joint
wage
of the miners' repre¬

conference

sentatives and the coal operators
convened

week

of

at

Buffalo

Sept. 25.

during the
Having been

statement from the

House
he

Oct.

strike

steps
are

must
be
considered a
grave
moral
and legal wrong
against the Government and the
people of the United States." The
people,

and

said it
underwriters

distributors

dealers

was

of

CORPORATE

BONDS

1,

the

people."
He
"proposed to abrogate

was

as to wages which
made with the sanctioh of the

Administration, which
during the continuance
the war but not beyond April
1920."
He said he felt con¬
to

run

vinced

BONDS

that

when

the

manner

were

mental

attack,

welfare

COLA

BOUGHT

COMPANY

of

added:
to

SOLD

our

a

involve

is

wrong

upon

the

upon

the

country."

"When

reaches

CLASS A
-

and

a

He

movement

point where it appears
practically the entire

productive

capacity of the

try with respect to

one

coun¬

of the most

vital necessities of
and

Clement A. Evans 8c Company
incorporated

First National Bank

ATLANTA
Augusta




3,

Building

daily domestic
industrial life, and when the

is asserted in the cir¬
cumstances I have stated and at a
time and in a manner calculated

movement

to involve the maximum of
danger
to the public welfare in this criti¬

GEORGIA

cal hour of
tel.

Main

1921

Bell Teletype at

our

country's life, the

Macon

all orders

Nov.

1

looking to

and

strike

a

whatever

take

to

of work.

officials of the United

strike

of bituminous

not be

avoided; the issue had been

made

and

upon

the

consumer.

Another

of

the

conspicuous

labor troubles of the year involved
the printing trade in New York

City.

Owing to a combined lock¬
strike, extending to the

and

out

whole 250

or

in

engaged

more

establishments

book

and magazine
job work throughout the city,
involving all the pressmen

and

assistants

and

the

press

if

it

miners

be

must

can¬

settled

the field of industrial battle,

responsibility rests fairly and

squarely
had

The

recourse

and

on

the

upon

alone."

barons

coal

Government
to

Oct. 31

then

legal proceedings

an

order

was

issued

the petition of C. B.

Ames, As¬
Attorney-General of the

sistant
United

States, by Federal Judge
Anderson, at Indianapolis,
enjoining officials of the United

A.

B.

Mine Workers from enforcing the
strike.
Unlawful conspiracy
to
limit the output and facilities for
the

transportation of coal was
charged in the proceedings. Hear¬
ing on the injunction came up
Nov.

8,

and

directed

the

the

recall

Court
of

the

then
strike

order, to which the mining leaders
rendered compliance,
though in
the meantime the strike had gone
into effect Nov. 1.
The view of

this

action

the

zens

of

the

Government

comment

of

President

guaranteed

under

the

Con¬
stitution and defined by
statutory
ever been issued
by

law that has

any Federal Court."

It

recall of

a strike
order, but quite
different thing to get the strik¬

ers

ter

to return to work.

of

fact,

number

of

only

a

back

As

very

the miners

parts of the country
and

Albert B. Anderson

feeders employed in these

a

mat¬

limited

in various

saw

fit to go

resume

mining.
The
great bulk of the strikers
simply
stayed out.
In the meantime
Administration
authorities
newed their efforts to

Typographical

Union,

bers of that union

in

engage

mem¬
unable to

without the

strike

a

the

were

body'

sanction of the international

therefore,

would

have

involved the risk of

expul¬

sion

from

and

to

strike,

body, but large
numbers of these typesetters took
that

work.
both

The

demand

The

in wages, with a reduction
number of hours from 4o

The employing
$6 wage in¬

week to 44.
printers offered

per

crease,

and

the

a

adoption of the
May 1,1921.

The

let

the
to

44-hour week

on

unions

were

willing

re¬

matter

of

increase

in

to

pay

go

arbitration in accordance with

an

adjustment of the wage
troversy
between
miners
operators,

Brooke, Tindall & Co.
1140-50 C.

& S. Bank Bldg.

ATLANTA 3, GA.

basis

J. W.

Tindall

Long Distance 75

Byron Brooke

be

again
found

failed.

a

and

No

acceptable

to miners and
operators alike.

As

expedient, the Fuel Admin¬
istrator, Dr. Harry A. Garfield,

by
President's

the

members

Cabinet,

of

the

prescribed

the conditions which
both miners
and operators would
be obliged
to

request
would

accept.

the miners

Under these conditions
were

to get a 14% ad¬

of

the

employers,

submit

not

the question of the

troduction
The

last

backed
Teletype AT 98

but

could

con¬

ever,

to

related

hours of work.
asked for a $14 in¬

unions

the

that
froim

and

wages

crease

in

instead, and in
to
abstain

managed

way

trus

bring about

estab¬

lishments, virtually all the week¬
ly and monthly papers and maga¬
zines found it impossible to get
out their customary issues.
The
typesetters, also, in great measure
joined in the movement.
Under
the
rules
of
the
International

"vacations"

quickly appeared that it was
thing for a court to direct a

one

a

and Stocks

the

Mine Workers remained obdurate,
and on Oct. 29 announced "that a

Lewis, to the effect that he re¬
garded "the issuance of this in¬
junction as the most sweeping
abrogation jof the right of citi¬

Corporation Bonds

advance in the price of coal to

no

vent any stoppage

by

Municipal and

plan, as stated, provided a
14% wage advance, but it virtual¬
ly precluded any further advance
beyond this, since it was made
with the idea that there should be

and

taken by the miners was indicated

596

Harry A. Garfield

field's

steps might be necessary to pre¬
But the

returned

Administrator, and the
President then appointed
Walker
D. Hines in his place.
Mr. Gar¬

and

on

which

morally and legally,
rights of society and

COCA

time

considered the pro¬
posed strike constituted "a funda¬

STOCKS

COMMON STOCK

wel-

comfort

S. Fuel

was

MUNICIPAL

economic

domestic

of

coun-

agreement

an

U.

the

the

call
on

gravest

proposed in this

ever

health

and

characterized

"one of the

affecting

ry

He

25.
as

White

Dr.

Fuel

as

at

a

immediately

work.

however, tendered his resignation

C. B. Ames

Cleveland,

sued

settlement of other
questions
This proposition dis¬

dispute.

to

the

bituminous

work

the
and miners, to
decide
further increase in
wages

a

thereupon

coal
miners to stop
law would be enforced and means
midnight Oct. 31, was would be found "to
protect the
issued to 4,000 local unions on Oct.
interest
of
the
nation
in
Ohio.
The Convention closed on
any
15 by John L. Lewis, as Acting
and in the new year put forth Sept. 23, after adopting
emergency that may arise out of
resolu¬ President
of,
the
United
Mine
a rather ambitious project for pro¬
tions for nationalization of the
this unhappy business."
In the
Workers.
Secretary Wilson con¬ circumstances he
moting harmony between capital coal mines through Governement
"solemnly" re¬
tinued his efforts, however,
and labor.
bT^ quested both the national and the
purchase of the mines, and for a
all to no purpose.
Finally, after local officers and also the in¬
working alliance with railroad
an all-day meeting of
Strike
of
the
Bituminous
Coal
Jthe
Presi¬
dividual members of the United
employees to secure the adoption
?
dent's Cabiriet, the President is¬
£tr
Miners
of the Plumb plan for nationaliza¬
Mine Workers of America to re¬

hands qf either

the

a

official

upon

the

as

a

remitting in his endeavors to avert
the

of

soon

operators

holi¬

and

Secretary Wilson of
Department of Labor was

behalf
as

:

wera

half for overtime and double time

days.

Attorney-General Palmer

trict representatives of the
United
Mine Workers at a
conference de¬
cided to accept, and the

day, and

week, with time

ob

wholly dissatisfied): he would
ap¬
point a commission of
three, in¬
cluding ; representatives
of'

ad¬

promulgate

six-hour

maximum

a

a

however

,

returned to work on
the
basis of the 14% increase
in wa^es
(with which
the "miners

The demand of the miners
a 60% increase in wages,

five-day

6

miners

April
President

the

until

or

The^ miners,

announced,
on
President, that,

that the existing wage

should

days

virtually amounted to
modification of these
terms
On

a

scale would not expire until
Byron

six

tained what

journed.
The operators the same
day (Oct. 11) issued a statement
asserting

;

j£

is,

for

appealed to the President
and

the

be

day

suffering

and that

agreement

an

eight-hour
week

Oct. 11 that it had been unable to

conference

operf

to sell coal
at the
same
before, the hours of labor
remaining unchanged, that
were

price as

with the consequent
and distress of all our

Ohio, Indiana, Illinois and West¬
Pennsylvania, met at Phila¬
delphia on Oct. 9, and after a
three-day session announced on
come

tors

the country,

ern

the

in

of this strike and
paralyze the industry of

to

namely,

represented,

wages, in addition to
the
large advances obtained
by them
October, 1917, while the

his

out the purpose

was

of

each

it

clare

operators and

two
from

vance in

said

duty "in the public interest to de¬
that any attempt to carry

9, at which time a sub-com¬
mittee of the conference would
renew
the consideration of the
miners' demand at Philadelphia.
Oct.

This

He
felt

he

that

furthermore

until

recess

consideration."

mount

Oct. 2 that the

on

Thursday, September
6,1945

CHRONICLE

of

the

the

but

to arbitration
immediate in¬
44-hour week.

Typographical Union, bowmeeting on Sunday, Nov.

23, decided to let the question oi
the

week go to arbitra¬
along with their wage de¬
mands:
Only the previous Sunday
the members of the
"Big Six

44-hour

tion

Typographical Union, at a mass
(Continued on page 1111)

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162

Volume

1111]

The Fiist Year After World War I
it may be questioned whether the
volume .of business in thei
aggre¬

(Continued from page 1110)

essential

Florida Bond Traders Club

industries

full

to

limits

could not have been maintained
voted to stay away
from their jobs until their de¬ gate was fully equal to that of the and might have been checked al¬
mands should be granted. But by previous year when the war was together.
To guard against con¬
this dime
the' number of the still in progress and all energies tingencies, coal production had to
were
employed in the endeavor be stimulated even beyond imme¬
"vacationists" had increased to
such an extent that the employ¬ to bring production in what were diate requirements, otherwise the
termed the "essential" industries
ing printers
finally refused to
consequences
might have been

meeting had

to the top-notch—"essential" here
meaning indispensable to the con¬

duct of the

In what

war.

are

or¬

dinarily considered basic indus¬
tries, more particularly iron and
steel

as

one

another,

and

coal

production

mining as
heavily

was

reduced. The output of bituminous
coal in the United States in 1919
is put at

very serious.
What was involved
in the coal trade in the change
from

a

&i5*
Ik.

basis to

war

a peace basis
recognized when the
armistice was signed in Novem¬
ber, 1918, for coal production was

at

was

once

immediately allowed to fall
In the first part of

\1

off.

1919 the loss

from the corresponding months of
1918 was very striking, and in the

only 458,063,000 tons, as
579,385,820 tons in 1918, case of the anthracite shipments
551,790,563 tons in 1917; and the exceedingly mild winter, as
the
production of Pennsylvania contrasted
with
the
extraordi¬
anthracite for 1919 at 86,200,000 narily severe weather
experienced
tons, as against 98,826,084 tons in during the early months of 1918,
1918 and 99,611,811 tons in 1917. came in as an
additional factor

against
and

In

the

was

a

case

very

of copper, too, there
considerable diminu¬

tion in production—the

H. A. Garfield

Dr.

continue negotiations with the of¬
ficers of the

union, and protested
the International Typographi¬

to

that the

cal Union

"vacationists"

action

of the

equivalent to

shrinkage
600,000,000

while

863,580,381 pounds, against 2,476,077,401 pounds in 1918 and 2,507,663,067 pounds in 1917. According

cessation

to

the

American

Iron

Steel

and

held

was

their heads

over

a

in the

the labor troubles just referred to

in

the

same

it lasted reduced

duction

the

to

small

of

matter
of

war

coal pro¬

proportions.

iron

and

steel

peace

of

elements

products and

their chief

no

now

be

merely
in
longer have

in the turning out

materials.

war

mation

use

In
the

activities meant

that iron and steel would
constituent

The

transfor¬

here

quite obviously was
more
decided than in any other
industry and that circumstance
alone

duce

inevitably
a

tended to pro¬
state of quietude such as

the characteristic of the early

was

event of failure to

comply.
This tended still further to cut down months of 1919. In addition, dif¬
In the case of coal, ferences of opinion with reference
Following the the output.
action
of
the
Typographical mining in 1918 had been pushed to the new and lower schedules
Union,
the
pressmen's
and to the utmost since without ade¬ of prices to be put in force, and
feeders' unions, who had seceded quate supplies of fuel, arranged some sharp disputes between Gov¬
from their International!
bodies, for in advance, operations in the ernment bodies as to what the
voted to rejoin the latter.
Work
proved

Robert H. Cook

George U. Robson

direction.

In the closing months of 1919 the
strike in the bituminous regions

being figured at over
pounds—the production of refined
copper for 1919 being put at 1,-

Institute, the make of pig iron in
strike.
As a result, the Executive 1919 reached only 31,015,364 tons
Council of the International body which compared with 39,054,644
issued
a
mandate
peremptorily tons in 1918 and 38,621,216 tons in
ordering the "vacationists" to re¬ 1917. In all these instances a fall¬
turn to work, the threat of penal¬ ing off seemed natural as a result
ization by the International Union of the cessation of hostilities; and
was

operating

E. W. Jackson

President: E. W. Jackson, Thomas M. Cook & Co., West Palm Beach,
Fla.; Vice-President: Robert H. Cook, B. J. Van Ingen & Co., Miami;
Secretary-Treasurer: George U. Robson, Cohu & Torrey, Mami.

effective.

new

prices should be, served fur¬
un¬

In the building trades there was
naturally a tremendous revival of
activity.
Following the entrance

Here, too, labor trou¬

of the United States into the war

ther to promote the disinclination
to engage

in ordinary business

dertakings.
bles—both

in

the

steel

industry
itself, and later in the coal indus¬
try, this last serving to deprive
iron and steel making concerns of
needed supplies of fuel — acted

in

further to reduce production after
the early period of quietness had

to

the

in

order

given place to

would

for

and

all

leading

steel

urgent

a

and

renewed demand

products

character.

elimination

of

of

now

all

of

iron

quite

a

In copper

the

demands

war

April,

1917,

the

of

erection

buildings for private use had to
almost completely eliminated
except so far as new structures

be

had

to

nary

for

be

erected

conduct
that

have

of

the

as

an

the

incident

itself

war

that

materials

into the ordi¬
buildings might be available

war

gone

As

uses.

enforced

result of this

a

restriction

a

great'and

scarcity of hous¬
accommodations developed—

unprecedented

necessarily entirely changed the
aspect of that trade, the more so
as huge stocks of the metal accu¬

ing

mulated in

Property valuations consequently
went up and so did rents—at first

tion that
the

War

1918 on the supposi¬
they would be needed by

Department,

were

now

not alone for dwelling purposes,
but for office and business needs.

in

freed for other uses.

a

slow and cautious way

continued on,page

(own1112)
;

was
generally resumed Nov. 24.
Throughout the strike, the Inter¬

national

Printing

Assistants'
the

Union

Pressmen
had

and

supported

employing printers, and had

BUSINESS

ESTABLISHED

1924

offices here to recruit
pressroom
workers
to
fill
the

places of those who,

because

>

FLORIDA

opened

of

X

HUMCIPAIIBONDS
FLORIDA

MUNICIPAL

Brokers and Dealers in General

BONDS

Unlisted Securiiies

Corrigan & Company
Incorporated

LEEDY, WHEELER & CO.

SECURITY BLDG.,

MIAMI 32,

FLA.

Florida Bank Building

ORLANDO,
Bell

A.

their

Mitchell

Bell Teletype MM-80

Telephone 3-2137—L. D, 52

Long Distance 27

Palmer

the

four

unions, had

been
The

affiliations

FLA.

Teletype—OB 10

with

outlawed

local

refused

re-employment.

number of recruits obtained,

,

UNDERWRITERS

how¬

-

DISTRIBUTORS

-

Hi

■

DEALERS

ever, had proved very small. The
strike
and
lockout
had
begun

Specializing in the Origination,

October 1, and the trouble, there¬
lasted
pretty
nearly two

fore,

Distribution and

months, during all of which time
nearly all the leading weekly and
monthly publications found it im¬
possible to
and
Were

text

being

*

m-i
■

•

KANSAS

•

OKLAHOMA
Firm Bids

reproduced

plates made from photo¬
graphic - copies
of
typewritten

—

Firm

Offerings

—

h

IIS

Quotations

Municipal Bonds

V5;>'S

I

V?,

I

•

:

* i

Inquiries Invited On Florida Corporate Issues

manuscripts.

The arbitration re¬
sulted in giving the typesetters $9
week

! if |
f|

DISTRICTS

ALL ISSUES

TEXAS

from

a

COUNTY

FLORIDA

two of them,

one or

notably the Literary Digest,
issued in reduced size, the
matter

i"*?;

MUNICIPAL

bring out their regular

issues, though

Servicing of

i

and Local Securities

MI

increase, raising the scale

of pay from

$36 to $45, but on the
basis of the continuance of the 48hour week until
May

The Volume of Business

While the

year

riod of undoubted

1919

was

a

great trade

1ST.

pe¬

tivity—taking

trade, as a whole
regard to- conditions in
h^any separate industries—and of
and large profits,




Long Distance 47; 5-3680

_

Bell Teletype JK 18lj

Teletype—OR 81

JACKSONVILLE

ac¬

Without

advancing prices

i

The Crummer Company
NAT. BANK BLDG.
„V%^/^0RUND0- Fl0R'DA

1, 1921.

Chicago, III*

Wichita, Kama*

Kansas City,

1, FLORIDA

Missouri

Branch Office: ST.

PETERSBURG

THE COMMERCIAL & FINANCIAL CHRONICLE

1112

Thursday, September 6,

1945

Memphis Security Dealers Club

The first Year After World War I
labor troubles^ kept on record for any calendar year),
arising in the buildings against $496,537,914, the excep¬
trades, constituting a formidable tionally small total for 1918, and
been unsalable); and then at the obstacle in the carrying out of $819,241,507 for 1917.
new
As regards business generally,
very close of the year with great
projects. In addition, money
rapidity.
All this served to re¬ rates were ruling high and real it is exceedingly difficult to say
lease
estate
in
pent-up energies in the
particular case whether
any
mortgages were not easy to
Nevertheless despite all the volume of business in 1919
building lines.
At first it was a obtain.
these
drawbacks
new
work
on
a
was
question how far builders would
equal to that of 1918.
Ex¬
go in the attemps to relieve the very extensive scale was planned pressed
in money the business,
and
in
no
small
with
shortage.
The cost of materials
degree carried to
relatively few exceptions,
was
high,. Jabor. unruly and de¬ completion, this last being due to was unquestionably larger, but
the
fact
that
that
has
little bearing upon the
manding steadily increasing com¬
owing to the scarcity
pensation and insisting on shorter of housing accommodations pur¬ volume of business transacted—
hours along with other conces¬ chasers finally got into a mood the
number ; of
separate
units
sions which made the labor cost where they were willing to pay handled and dealt in—since prices
almost prohibitory, besides which, almost any price in order to sup¬
ruled so very much higher that
(Continued from

page

1111)

fact,

succeeded-- in

ers

getting good
prices for parcels which had long

on

account

of

the

attitude

labor, contractors had to

new

steadily

of

assume

ply their needs, thus enabling the

that circumstance alone tended to

builder to

raise the aggregate sales value to

all his

outlays
profit besides.
Care¬

recover

great risks in venturing upon en¬

and make

gagements

looking to the future
since a seeming gain might be
turned into a serious loss by fur¬

fully compiled statistics published
by the "Commercial & Financial
Chronicle" show that at 286 cities

was

ther labor demands which would

in

classes

have to be granted as the alterna¬
tive to a strike and a complete

plated
sued

during

stoppage of work involving

1919

aggregated

more

serious loss.

As

a

even

matter of

a

the United

outlay

$1,505,317,260

States the contem¬

under

the

permits

12
no

is¬

ever

of

with

months

less

(the heaviest

heavily

than
total

increased

levels.

because

the

received

before and

wage-earning
higher pay than
spent the money

the greatest
with recklessness.

President:

Robert H. Jordan

DEALERS

Gordon Meeks & Co.

ment stores to the doors and were

margin.

wholly indifferent

to the prices

merchandise exports for 1919 was

charged.
It was because of these
large sales at retail that the de¬

$7,922,150,592 against $6,149,087,545 in 1918, $6,233,512,597 in
,1917
and only $2,113,624,050 in 1914.

upon

as

jobbers

whole¬

and

$3,904,406,327 in 1919
$3,031,212,710
in
1918,
$2,952,467,955 in 1917 and only
$1,789,276,001 in 1914. Here, too,
the higher prices played an im¬
portant part in swelling the totals
—not so very much so in the com¬
ports

The Country's
In

reached

RAILROAD

the

INDUSTRIAL

1917

Foreign Commerce

foreign trade the totals
unprecedented' figures,

our

high

record

established

being surpassed by

parison

in

but

wide

a

was

against

goods, wholly
irrespective of prices.

PUBLIC UTILITY

In brief, the value of the

The total of the merchandise im¬

salers, and in turn upon manufac¬
turers, was so urgent and the
main
consideration
everywhere
seemed to be to get

U. S. GOVERNMENT

MUNICIPAL

Gordon Meeks

C.

freedom—even

As pointed out
above, they crowded the depart-

DISTRIBUTORS

Lancaster

James

Lancaster, Union Planters National Bank &
Trust Co.; Vice-President: R. H. Jordan, R. A. Shillinglaw &
Co.;
Secretary: H. C. Ross, Leftwich & Ross; Treasurer: Gordon Meeks,

mand

UNDERWRITERS

C.

J.

Retail

business, it seems safe to say, sur¬
passed all previous records. This

between 1919 and 1918,
accounting for the greater
(Continued on page 1120)

SECURITIES
MUNICIPALS
Direct Private Wire Nashville

to

New York

Tennessee, Mississippi & Arkansas
FIRM BIDS

—

FIRM OFFERINGS

Detailed

mciAuziHC

information

on

—

QUOTATIONS

request

IN

/"

\
!llE»HONtS
lllll
5 Mil

NASHVILLE
322 UNION

TWO WALt, ST.

Mm
ton
OF

TEL. 6-7171

TEL. RECTOR

NEW ORLEANS

KNOXVILLE

BIRMINGHAM

MEMPHIS

CHATTANOOGA

ID III

mums
Willi

MEMPHIS

Willi

2-6565
MUNlClfAl

HARTFORD

ID-Ill

In

NEW YORK

ST.

MEMPHIS t. TENNESSEE

IONDV

V

GREENSBORO

*

Southern
Local

Municipals

Corporate Securities

Gordon Meeks

&

Company

FIRST NATIONAL BANK BUILDING

MEMPHIS, TENNESSEE "

BOND DEPARTMENT

TELETYPE

ME

292

COMMERCE UNION BANK




NASHVILLE 3, TENNESSEE

ACTIVE TRADING MARKETS
TENNESSEE

New York Correspondent

Davis Kales

MARKET

GENERAL

MISSISSIPPI

SECURITIES

ARKANSAS

ALL

MUNICIPALS

STOCKS and BONDS

LOCAL

70 Pine Street—Phone WHitehall 4-1877
Bell

System Teletype—NY 1-2643

Bullington Schas
-

&

Co.

FIRST NATIONAL BANK BUILDING
MEMPHIS 3, TENN.

BELL TELETYPE-ME 88

TELEPHONE 5-3501

/

Number 4418

162

Volume

THE COMMERCIAL &
FINANCIAL CHRONICLE

New Orleans

1113

Security Traders Association
*>'f

■

T.

J.FEIBLEMAN 6- CO.
MEMBERS

t:

NEW

ORLEANS

STOCK

Carondelet Bldg.
NEW ORLEANS 12,
Raymond

41

LA.

Breckinridge

P.

Robert M. Woolfolk

Frank

Burkholder

Joseph H. Weil

.

Walter D. Kingston

Street

3329

Bowling Green 9-4433

Teletype—NY

1-493

Harold Dane

•"

:

■

Broad

NEW YORK 4, N. Y.

Teletype—NO 95

F.

EXCHANGE

>:1P

V

President: F. P. Breckinridge,

Whitney National Bank; Vice-President: Robert M. Woolfolk, Woolfolk,
Huggins & Shober; Secretary-Treasurer: Frank Burkholder, Equitable Securities Corporation; National
Committeemen: Joseph H. Weil, Weil & Arnold; Walter D.
Kingston, Lamar, Kingston & Labouisse;
Alternate: Harold Dane.

Specialists in

Future American
(Continued from page 1075)
not yet learned to be
creditors. If they would study the

trine have

of the rich

attitude

judge

they would
international position

the

What does

clearer.

better and

his

their do¬

investments

mestic

rich

in

who

man

live

can

a

If
of

20th

rely upon a repetition
experiences in the 19th or

ished

we can

our

Centuries,

least

for

only

the

from

former

rich

temporarily

MISSISSIPPI

Eu¬

and

it themselves and after

(Continued

impover¬

on

U. S.

business, and there¬
surplus capital in
oil or steel, in railways or public
utilities, really want from these

KINGSBURY 6- ALVIS

regular

shares

bonds

and

tions?

On the

one

Hibernia

D'ANTONI & CO.
Investment

?:

New

Telephone:

Orleans Stock Exchange

either at the

power

he chooses

shorter

after

or

and

Bell

NO 382

Teletype JN 84

RAymond 9977

Teletype NO 165

City of New Orleans Municipals
Trading

mo¬

fixed

a

Bldg.

JACKSON 112, MISS.

12, LA.

Specialists in State of Louisiana

wants command of money, of pur¬

chasing

Bell Teletype

'

,

Lamar Life

Bldg.

NEW ORLEANS

NEW ORLEANS 12, LA.

Members

hand he wants

capital appreciation or as much
security against depreciation as
possible; on the other hand, he

ment

Securities

AMERICAN BANK BLDG.

participa¬

or

Housing Authority Bonds

1114)

from

fore invests his

MUNICIPALS

number

a

page

.

AND

Britain, France, Holland,
Belgium will, after a period of
transition, not need any additional
foreign capital. They will supply

including the
1918-1939,
everything would be very simple,
now

Western

of

countries

rope.

even

inter-war period

at

LOUISIANA and

Foreign Investments

longer period.
If he
instance, the Sun Oil
shares mentioned above, the cash
yield on his investment is almost
negligible, but in his true balance

JEFFERSON

LAKE

STANDARD

FRUIT

or

and

other

markets in

COMPANY

SULPHUR

CORPORATION

SS

&
local

securities.

for

owns,

sheet

(not

the

poses) he has

for

one

tax

capital

more

NEW

ORLEANS

Bought
Blaise

S.

D'Antoni

BANK

Sold

Anthony

STOCKS

Quoted

Specialists in

y

Erwin

Ciaccio

R.

Schweickhardt

L O UISIA NA

pur¬

MUNICI PALS

every

At the same time, he can
dispose of his investment any day.

year.

Not that

he

has

a

claim

Dealers in

against

the company, but there is a ready
market for the shares and if he

Dealers in

LOUISIANA, MISSISSIPPI and

needs money to buy a

house or to
enlarge his business, there will
always be somebody who is able
and by all probability willing to
buy his shares.
The

analogy

to

nation is evident.

fundamental

change,

of

rich

a

NEWMAN, BROWN & CO.

As long as the

conditions

rich

a

this

Municipal and Corporation Securities
OTHER SOUTHERN MUNICIPALS

nation

do

INC.

326 Hibernia Bank

not

does

wish to repatriate its

satisfied

with

Barrow, Leary & Co.

not

NEW

capital. It is
having it on its

Building

ORLEANS, 12

SHREVEP0RT

Teletypes NO 189 & NO 190

Long Distance 101

books, provided the investment is
reasonably safe and profitable.
The individual capitalist wants
to have a
regular market where
he can dispose of his investment.
But this market
may just as well
be in New York and not in the

80, LOUISIANA
Teletype SIH! 83

Telephone 2-8351

2mm

of all Securities

RETAIL DISTRIBUTORS

.Listed and Unlisted

country where the industrial plant
mine is situated
legal domicile.
If this worked for
or

vestments
in

on

all

and

has

its

TRADERS in all

European in¬

continents

We

would appreciate
to

SCHARFF

JAMES

E.

DANIEL

RODDY

L.

SCHARFf

the opportunity

cooperate

reason

for

so

origination
IKE D.

and

dozens of countries, there is no

valid

Municipal and Corporate Issues

of local

States.
Atnca

why it should not do
investors in the United
For many decades

was

not

able

to

GLAS

South
repur¬

chase its
mining shares, especially
when the successful
entrepreneurs
have moved
their
offices
from

&

CRANE

LOUISIANA and MISSISSIPPI

INVESTMENTS

NEW ORLEANS 12, LA.

333 WHITNEY BLDG.
Bell

MUNICIPALS

System Teletype—NO 298

Johannesburg
to vThrogmorton
Street and their residences to Park
■Lane and their
Surrey Estates.
Perhaps
Pay

or

the

Netherlands

buy back
vestments rather

tania

or

its

soon,

Iraq will need

will

foreign
but

in¬

or can

Immediate Firm Bids

Southern Municipals

Ruri-

Corporate Issues

use

advantageously additional capital.
When—contrary to expectations—

Local Slocks

Lritam needed its
foreign invest¬
ments for the settlement of her
Irade balances
during both World
Wars, there were naturally coun¬

UNDERWRITERS

having favorable balance of
Payment who were potential and
buyers.
There can
adverse balance of one

be

—

BROKERS

Schartff L Jones

WEIL & ARNOLD
CANAL

WHITNEY BUILDING

TELETYPE
NO

180

&

181

NEW ORLEANS

12

L. D. 25

MAGNOLIA

BUILDING

no

country
without the
complementary favor¬
able balances in
other countries.




DEALERS

INCORPORATED

tries

actual

—

NEW
Phone

Raymond

0711

ORLEANS

SIIREVEPORT, LA.

12, LA.
Bell Teletype—NO 175

■HHII

—

JACKSON, MISS.

1271

Thursday, September 6, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1114

and,
often-quoted per¬
over-critical British report

ernization of her steel works

Foreign Investments

Future American
(Continued from page 1113)
of years produce a

consumption

and

surplus above
home in¬

new

capitalistic creditors, export capi¬
tal br repay foreign capital. China,
India or Iran, the South American

Republics and Eastern Europe
may be legitimate importers
of
capital for 100 years — as the
United
States
had
been until

first

the

before

shortly

World

War.:^®
h

If

on^

ican

should predict the Amer¬
balance of 1970 — or

trade

mer

perhaps of 2000—he must expect
it

have changed

to

a

great deal.

times

as

well

as

future years.

be
open
to many
doubts, but nevertheless will be
found
fundamentally correct in
their relative position.
These

may

inhabitants,
of life, i.e.,
will hardly
Britain is said to have had a
agricultural
total national income before this
products, nor of mineral oil, nor
war
of 22-25 billion dollars of
pf many finished products, for
which the high American wage which she saved, i.e., used for net
about 2-2%
billion
level cannot be compensated by a investment
dollars.
This British income in¬
productivity of labor which the
cluded
$1 billion from foreign in-:
other
countries
have
not
yet
achieved.
If that should then be vestments which have since been
say 160 million
highest standard
of consumption, there
be
any
export
of

With,
the

the

the

case,

interest

received

frcjm foreign investments may be

Used to settle the difference be¬
exports and imports, i.e.,

tween

the United States would cease to

partly sold, and partly are still in
enemy hands and may not yield
any profit right after liberation.
It also included the shipping in¬
come which in the first few post

years is expected to stay
increase its foreign investments.
This assumption is certainly just 9t least at pre-war levels; and the
U marginal case of zero.
The sit¬ banking and insurance services
uation may be like that in Eng¬ which in all probability will bring
land before 1914, in which part considerably less until the British

bellum

of the interest received

was

trans¬

ferred, and part reinvested abroad,
or it may be as in the years just

before this war in England, when
foreign investments ' on balance
decreased and the repatriated cap¬
ital was used at home for the socalled

industries.

new

haps
on

economy

is restored on a secure

basis.

will

she

etc.—are

expect that
the British industry and largely
expanded agriculture with a high
one

can

rate of

employment and many ex¬
and improvements made
during the war will not fall betensions

stocks

sums

her

own

of wool,

ac¬

cocoa,

for capital forma¬

raw

materials for which she pays

with finished

goods, shipping fa¬
cilities, etc., and she will furnish

herself by far the greater part of
the capital goods for her domes¬
tic

But then she will be short

use.

SECURITIES
-

Distributors

-

Dealers

dollars.

These years were a pe¬
substantial
construction

of

for the

new

industries and of 300,-

000 homes per annum.

The

needs

on

Rogers

the

for

the

reconstruc¬

tion of shattered cities

as

well

as

ization of British industry will be

years, since it would be difficult
to find the skilled labor and the

may

consume" will somewhat increase.

and 1930.

After

chinery, etc., i.e., its marginal util¬
ity, will be very high if the capi¬
tal is employed most efficiently.
This certainly will be true when

industry, "suffer¬

ing for decades from the diminu¬

/

\

This

the

domestic

condition

the

come

perts hope for the construction of
300,000 to 400,000 new homes per
annum at an average cost price
of

adjust¬

the possibili¬
rationalization and mod¬

$3,000 to $4,000 with a much

the first one or

smaller figure for
two

years.

IV

increase

be

true

reached

years to
of the British

To

inside

of six

to

this^ expenditure will!

ten

capital

d^ihdle lo

amounts, a fact
today worries the

British who would like to have

a

large labor force in the building
industry at present but cannot

reconstruction, mod¬
replenishment of

for

ernization

and

demand

This

stocks.

well be satisfied in a

can

a great extent from the United
States, but to a certain degree also

,

from Switzerland, Sweden, etc.
a high productivity reached
through such investment, Britain
will soon be able to finance her
needs alone despite higher con¬

With

will

She

sumption.

with say $10
capital imports (plus

enormous

Bell

Teletype SA 23
Teletype

Established 1915

5

new

Western Union Phone

;

HOUSTON

foreign

accounts

less

retained

by British

of her liabilities,

k

DHL1HS

The

Sir

Beveridge

William

not

TELET YPEE

are

BELL

consume

SYSTEM
-

396

Investment Securities
MERCANTILE BANK BLDG.

Branch

BUILDING

i




★

DALLAS, TEXAS

HOUSTON

DALLAS 1, TEXAS

Offices
SAN ANTONIO

^

of
Keynes
but wiU
and

(now Lord)

going to save,
everything
they

can.
improbable.
Keynes, like Picasso, has had so
many periods that one cannot m
fairness use an argument of the
theorist of 1936 against the states¬
man and
director of the Bank of
England of this hard year of 19*0.
Despite the understandable des"".e
of the English laborer to raise his
standard of life, one can safely
predict-;'that the wish and the
political necessity to restore pl¬
ain's
wealth
and
international
position 1 will for the next few
years dominate all economic arm
financial decisions.
This should
be largely independent of which
political party will be in
It
concerns
the men in West¬
This

RAUSCHER, PIERCE & CO

KIRBY

.

counter

only

John Maynard

395

y

/.argument
against this reasoning would be
that one may-expect the British,
under an economic psychology of
y

•

billion

blocked

investments
subjects and
companies)
will gradually de¬
crease and soon she will not only
be richer internally but her in¬
terna tiorfal
balance will rapidly
improve either by an increase of
her foreign assets or a decrease

Telephone Fannin 4324

2L It. Christie & Cn.

DLS

richer

be

The percentage
of foreign capital in Britain, never
than she is now.

SOUTH TEXAS BANK BUILDING

Western Union

very

few years

to

years,

small

even

recapitulate, Britain has an
demand
for foreign

enormous

the construction of 2 to 3 million
homes

of Britain's prospec¬

model

tive recovery.

for

population will be rather slow or
even negative, irrespective of pre¬
dictions what the post-war period
will
bring about in birth and
death rates.
At any rate, aftpr

relatively

are

will

because

sooner

which

large units with all
implements.
Only mod¬

most optimistic British ex¬

(the

Nobody is asked to accept these
figures as absolute truth.
But
loans and shareholdings of for¬ fundamentally they are approxi¬
eigners in the United Kingdom. mately correct and -constitute a

ganized

in

much smaller

bor needs will be so

t

these

tive size of many mines is reor¬

a

period, the present capital and la¬

over-

even

ments, Britain will soon come to
the point * when it will be more
profitable for her to invest part of
the savings either in enterprises
abroad
or
in
repurchasing the

(bricks,
etc.)
for
a
of building, repair¬
ing and installing of machinery—
beyond the normal replacement.

ties for

or

optimistic.
They are in range
with the experience of the United
States in the "Twenties" and cer¬
tainly of Germany between 1924

pace

the British coal

fantastic

all

at

material

erately smaller

SAN ANTONIO

Ray

Directors: R. A.

change

Underwood, R. A.
Underwood & Co.; R. A. B. Good¬
man, Schneider, Bernet & Hick¬
the same time, the British peo¬ man; B. F. Houston, Dallas Union
ple will become less willing to Trust Co.; W. A. Jackson; Secre¬
save
instead
of
raising
their tary - Treasurer: Rogers Ray,
standard of life, or to use Keynes' Rauscher, Pierce & Co.
expression,
"the
propensity
to

for the reconversion and modern¬

modern

HI SS & COMPANY

Robt. 'A. B. Goodman

point

somewhat.
The marginal productivity of ad¬
ditional capital will decrease.
At
situation

The productivity of the new ma¬

STOCKS, BONDS and MUNICIPAL

.

that

foreign exchange to pay for her Presuming that from the sixth Bond Club Of Houston
imports.
year on, only 3 billion dollars will President: Ed. Rotan, George V.
During the last years of the be saved with an increase of the
Rotan Co.; National Committee¬
inter-war period, this domestic
national product at first of 500
man: Charles B. White, Charles B.
capital investment in England— million dollars, going down slowly
White & Co.
net capital formation—for produc¬
to about 200 million dollars Brit¬
tion goods as well as housing, etc.,
ain will accomplish inside of ten
was estimated at more than 2,000
foresee work for all of them for
years in increase in production, of
million dollars, or perhaps taking
If,
30% above the level of the first more than five to ten years.
into
account
the
disinvestment
post-war year, or 20% above pre¬ on the other hand, the residential
outside of Britain, at 2,500 million
war levels.
Such figures are not building is spread over a longer

quicker

Trading Markets Maintained in All Unlisted

sources.

about

of

million dollars in the average of
each of the first five post-war

TEXAS SECURITIES

domestic

one

foreign, one half from

from

From

merely a bookkeeping
view. In reality, Britain will have
to import consumption goods and
is

This

invested,

been

have

would
half

tion.

riod

Anyhow,

with

pay

cumulated

large; but speaking in 1938 prices,
they ought not to surpass 4,000

Underwriters

great part, cer¬

textiles for a

status provided tainly not all of these industries.
the necessary raw materials are at
If 4 billion dollars per annum
Some practical men with a great
hand.
In other words, the de¬ are invested for five years and
disdain for theory and an ardent
crease of the British national in¬
the British economy is working
faith in their own intuition will
come—in pre-war values—is cer¬ full
speed, one may safely pre¬
not be convinced by the foregoing
tainly not supposed to be larger dict that the productivity of Brit¬
arguments,
which anyhow can
than the two billion dollars per ain will be raised by about a bil¬
only scratch the problem and can
annum
..formerly
sayed.
That lion dollars per year, in each of
not explicitly confute the so-called
means that Britain will be able
the first five years. On that basis
historical arguments of the interto cover her consumption needs the Unitsd Kingdom will have a
war period.
Perhaps the following
including regular amortization or surplus of one billion in the sec¬
remarks which try to give some
replacement of capital goods from ond year, two billion in the third,
examples or a kind of a model of
the very beginning of the post¬ three billion in the fourth and
what may be expected in the fu¬
war
period.
What she needs— four billion in the fifth from her
ture will find more favor with
aside from the temporary financ¬ own
production for capital forma¬
them.
These remarks are based
ing of raw materials, part of which tion.' Or in five years 20 billion
on certain estimates covering for¬
low their pre-war

hi

•

vestments,
i.e., they will, with
their
traditional
psychology of

Dallas Bond Club

according to the

seems

minster

as

entirely

well

(Continued

on

as

employers ana

page

1115'

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162.

Volume

1115

Bond Club of Louisville

Future American

Foreign Investments
(.Continued from page 1114)

unions, all of which have fourth, and fifth years. .This will
certainly much to learn and some- practically cover all American
labor

thing to forget in
Britain on a safe

order to rebuild

agricultural

basis.

nanced

of foreign

estimated need

The

the first

capital of four billion in
1 year,
; in the

fi¬

exports
to
be
by the Government.

A. second

of

financing
capital
needs
will
spring from the large American
companies with present or future
European
affiliations,
through
source

European

three, two and one billion
following years for the pur-:
pose
of capital investment in
subsidiaries
or
! Britain, as we have said, before, is wholly-owned
participation^
a bookkeeping
figure.
In fact;; even i minority
Britain" will import only a small \Yith the exception of Germany,
of capital goods and on
will even export capital

the reconstruction of these Amer¬

balance

goods.

Presuming a net capital

tions

amount

moderate

capital formation of 6 to 7 billion
dollars she will not need—and
than a limited

machinery,

of

and

etc.,
about

than
one
to one and half billion, including
ore
and metals, timber and the
relatively small quantities of textile materials which are used in
capital goods or even durable
consumers' - goods
and housing.
not

even

The

more

equivalent

physical

of

the

foreign capital investment in a
bookkeeping - sense will have to
consist of foodstuffs, raw materi¬

consumers' goods and for

als for

first

the

two

or

one

even

years

consumers'

finished

.some

goods.

For this very reason

there will be
only a limited opportunity of di¬
rectly connecting the export of
American goods to Britain with
the capital
transactions—as for
instance can be done by building

.

a

;

railway in Ruritania or

station
.

in

-

a power

Urbania—which,

fact, will also not

that

mean

in

more

than one-third of the money

can

.be

spent outside of the country
of use except for such articles as

rolling, stock

railway

auto¬

and

motive vehicles.'

?.

„

If foodstuffs and

raw

,

>

materials

will be shipped, to England from

countries

other

•they

may

United

the

as

it

may

In

States.

United

the

in

ceeds

than

Australia, Argen¬
be said that
spend part of the pro¬

•States, such
tina, Brazil,

fact, they will do so if our sup¬
position is correct that Britain
Continental

and

Europe

for

are

the moment unable to satisfy the
demand of the

agricultural coun¬
tries for capital: goods and more
less durable consumers' goods.

or
>

plants and installa¬
Europe will require but

foresee

import

.

in

formation of 4 billiop and a gross

cannot use—more

.

ican-owned

One

amounts.

that

new

some

tions will be established between
American

machinery,

John

Berwyn T. Moore

D.

motor

and

chemical firms with both old and

Inc.; Vice-President: John D. Faison, Bankers Bond
Co., Inc.; Treasurer: Urban J. Alexander, Urban J. Alexander & Co.; Secretary: Hugh Miller, J. J. B.
Hilliard & Son; National Committeeman: Thomas Graham, Bankers Bond Co., Inc.; Alternate: Mrs. Ora
M. Ferguson, Merrill Lynch, Pierce, Fenner & Beane.
'
,
President: Berwyn T. Moore, Berwyn T. Moore & Co.,

.

European factories of simi¬
lar kind.
But many , legal and
psychological obstacles on both
sides of the ocean will keep this
sort
of
participation
within
new

bounds.

V

A wider

rubber

and

shares

Likewise, it is

.

representing

a mere

expediency

whether

shares

in

sold

this

question of
the foreign

the viewpoint of the American
individual—may be the appropri¬

country com¬

mines

lished

and

estab¬

oil wells

or

in

providing capital for the exploi¬
of European-owned mines
and oil wells in other continents,
especially in Africa and Asia.
While this may also come under
the following two categories of
private purchases
of
securities
and special holding companies, it
will certainly be easier until the
American public is more accus¬
tomed to foreign investments to

Mines and SubNigel, giving thereby the British

let the Standard Oil

sellers

the

tation

or

the Texas

be

developments which will

new

That

started.

cided

has

to

be

de¬

single case
according to' the calculation and
market opinion of the seller and
the buyer or the American issu¬
ing house.
In foreign exchange
it

the

all

is

in

upon

every

same

whether

New

York buys Rand
the

ing the capital for the new exten¬
sion of the South African Rand

all

selection

formalities

be

can

in

whether

the

the

American

investment will

for

whole

our

However,
the

a

foodstuffs

England

export
beginning—

western

will

•Iii

substantial part of
and
commodities
well

as

as

throw them
next

minor

next bear

Theory

come

participates directly
developments.

as

least

HOLMAN R.

through
industrial com¬
through special holdinvestment

Foreign

the big American

panies,,

or'

friend

*Cf.

his

House
and

testimony

Committee

the

Banking

or

t

UNDERWRITERS

Direct

DEALERS

-

ISSUES

LOCAL

•

Private Wire

W. L
Members:

New

to

& Co., New York

Established

J878

LYONS & CO.

York Stock Exchange and

Other Leading Exchanges

235 South 5th Street, Louisville 2, Ky.
Bell

Jackson 1101

Teletype LS 90

:1?/ i.fV

FIRM MARKETS IN

and Many

Si

Other Issues of National Interest

BERWYN T. MOORE & COMPANY
INCORPORATED

INCORPORATED

MARION E. TAYLOR BUILDING
LOUISVILLE 2, KENTUCKY

DEALERS and BROKERS
★

as

It may be just as

Louisville Trust Bldg.,

Louisville 2, Ky.

to leave this
part

question

these

of

stocks

ments

either

Telephone—Wabash 6818

these

S1

INCORPORATED

long-term pay¬
keeping them here-in

or

on

J. J. B. HILLIARD

commodity exports will be

made

le?se

under

the

name

under new
another
title.

or

with

.

if

-even

of.

marketing,

collars

is

being

financed

paid

for

manufacturing

the

and

to

we

»•

..

.

York Stock Exchange

Louisville 2, Ky.

Hilliard Bldg.

St.

Teletype—LS 284

cotton used

estimate this agriexport from the United

uitural
states

goods

u

Long Distance 197

& Western Union Phone

INVESTMENT DEPARTMENT

Active Markets In

ALL LOCAL

SECURITIES

KENTUCKY MUNICIPALS &

the

first

year,

1,000 mil-

million

each

in

the




third-

Thomas

Wood

Graham,

BRIDGE REVENUE

BONDS

♦P.

Mgr.

Hannah, Asst. Mgr.

•Charles C. King

Europe at 1,500 million

7?n
th.e .second, and about 500ou

KENTUCKY

Stock Exchange
vAssociate Members New York Curb. Exchange

419 W. Jefferson
Bell System

1872

LOUISVILLE 2,

& SON

Members Chicago

■

British and continental
exports

finished

New

Members

agreements

Assuming
only cotton for the home
consumption of Europe is ex¬
ported on
long-term credits (or

4®n5~!f.a?e)» and the

Founded

lend-

of

that

Penod-

BANKERS BOND 3

exporting

warehouses at Government
expense. It is immaterial whether

J.

wire

to

Wood, Walker & Co.,

Telephone, Telegraph or

Write us

N. Y.

M.
D.

Conway
Faison

Howard D. Louden

J.

•On Leave

Private

the

in

Financial

and

Chronicle," April 26, 1945, page
1825, and May 10, page 2054.
(Continued on page 1116)

MUNICIPALS

«

the

wheat,

the

before

on

reprinted

Currency,

that^

Palyi*

Melchior

"Commercial

Carl M. Loeb, Rhoades

WALTER TRINKLE

American Treasury is in¬
volved, since it is more or less

*or,

my

COMPLETE TRADING FACILITIES

for the

n

conditions when
England and Holland could take
it.
But as much as I agree with

United Fruit and Cerro de Pasco.

Wilson -Trinkle Co.

of financ¬
direct Government agree¬
ments.
No new outlay of money

of

right

perfectly

be

ordinary

★

ing to

the

-

KENTUCKY

Hill, Katanga, Shell, and
Anglo-Iranian as with Interna¬
tional
Nickel, Cuban Sugar or

WILSON

the

for

directly owned

the farmers.

the

in

would

trage
under

Kentucky Securities

fPatrolled
by virtue of the loans
to
well

or

market, which the Dow

BROKERS

Broken

or

•cprn and the cotton are finan¬
cially and physically in the hands
of
the
Federal
Government,
either

the market in the

recession

predicts and its faithful
aggravate. In this

from the United States.

at

on

followers duly

countries

continental

fact,

as

resell them

to

could

enough from, the very
she would not need any foreign
capital to rebuild her economy.

'for

well

quick in his decisions—one may
rather say erratic.
Even if he
buys
his
foreign
shares today
with a long-term view he will

Other¬

argument.

Britain

as

reason.

speculator is very

new

ought'just as well be possible to
acquaint the average American
investor * ' with
East
Geduld,

participations in the
leading industrial companies of
Europe, such , as Imperial Chemi¬
cal, Distillers, Guinness and simi¬
lar
French
and
Belgian
com¬
African

The American investor

business, expecting them to pro¬
vide
expert knowledge in the
of foreign shares which
at
present are not familiar to
them, despite the fact that it

overcome

if it consists of South
gold shares, Dutch; oil

more

would

the arbitrage operator

to London or
Amsterdam, where the big mar¬
ket for them may be.
Such arbi¬
try

large part of this
one

prefer holding companies or
investment trusts for this kind of

in

panies,

for

will

especially if it will be found
possible to comply with the rules
of
the SEC.
For foreign
ex?
change purposes, it does not mat¬
consist

business

Perhaps here in America, even
more than in London, the
public

and

ter

America
these

ate form for a

case

possibility of supply¬

Corp., the Anaconda or American
Smelting act as financier.
For
the period of transition the typi¬
cal American investor will prefer
an American company with large
foreign assets to the Creole Pe¬
troleum
Co.
or
Chile
Copper.
Anyhow, we can expect the in¬
troduction of some foreign shares
in the American market provided

or

investment

and

companies

trusts—indirect investment, from

prise participations in old

field will be found in

ing

countries.

other

in

investments

And this supposition is the basis;
wise—if

Ora M. Ferguson

Thomas Graham

Urban J. Alexander

Faison

may

connec¬

M.

—

Fetter

U. S. Army

Willard P. McNair
H. W. Bohnert
E.

C.

Lewis

*

Thursday, September

& FINANCIAL CHRONICLE

THE COMMERCIAL

1116

free

values which sets

Future American
(Continued from page 1115)
of capital movements is
which

the ideal

reach,
will take

5to

should strive

we

rather

or

some

it

regain,

to

until the

years

'European market and the nor¬
malcy of bank loans on interna¬
tional securities is well enough
reestablished

to

allow such sud¬
We are not

it, it will

i basis

f of

be only

The

other restrictions
in
] transactions of goods and inter¬
national capital transfers,

:ilt

advisable

is

switch

original

for

well

known

the

rule

in

in

America

Holland

and

even

American tranche which

tS r

61

TELEPHONE:

traded

Exchange.

Stock

his

on

There

similar

Such

if

interna¬
we

all

almost
as

countries
kind

of

regained
financial strength

the United States
Senate, one serious impediment
of foreign investment has been
removed.
But if America, comes
to the conclusion that an exten¬
sion of foreign investments dur¬
ing the next few years is desir¬
able, there are plenty of methods
available to give such movement
a good start.
One of these would

in

of

approval

for

treat

to

of

income

a

direct

companies,

blocked/

tax

purposes

the

bona fide

long-term

foreign

securities

in

investment

capital repayment either for a
years

or

until

is amortized to a cer¬

the caoital

This privilege could

extent.

tain

of

number

confined to special

companies

organized for this purpose and to
other

permanent
investments of American corpora¬
tions.

and

or

Or it could be granted

special

for

and

cases

be

in

individual
made

de¬

participa¬

countries,

industrial

pendent upon certain restrictions
as
to the administration of the

for

some

or., may

'

,

New
New

Members

York

Stock

York

Curb Exchange

Exchange

Chicago
St.

capital and the minimum period

by private agreement, will
make special legal restrictions to
years

Stock

Exchange

Louis Stock Exchange

a

of investment.
There is

great extent superfluous.

Chicago Board of Trade

Despite the desire for

the

such

di¬

versification of risks and the lure

r

Active Markets in

of

countries

far

be

found

normal

tain
more

ST. LOUIS

in

away,

there

times

a

can

erence

of

investors

for

would

privilege

cause

tal

export

large,

.

the

become

privilege

could

Municipal Bonds

—

Corporate Securities

St. Louis

Stock

—

Bank Stocks

Taussig, Dau & Company.!

Exchange Issues

Newhard, Cook & Co.
UNDERWRITERS

MEMBERS
•

LOUIS

1924

STOCK

EXCHANGE

'"f'■
•
'V—'.VV*-' v=-'

.
V

ST.

-

.

and

DISTRIBUTORS

n<J
CN9

•'

••:•
"

•'

York

St.

Stock

Exchange

New

Louis Stock Exchange

.

Bell

New

York

Underwriters—Distributors

Exchange (Associate)

Dealers

SAINT LOUIS

Teletype—SL 152

L. D. St.

Correspondent, Clark, Dodge

&

Co.,

Louis 340,

61

Wall

Street

STREET, ST. LOUIS 1, MISSOURI

Teletype—SL 62

ON

ALL

GArfield 1721

DEPARTMENT

YOUR
ST.

debtors
We

The

.

wish

not

the

to

discuss at

question

when,

be withdrawn.
Let
that as long as the

may
say

States

is

place

considered

politically

nancially,

■

the

Exchange

Teletype—SL

includes

for

used

of

payment

In

goods.

fact,

American

nothing but the

danger of devaluation of the dol¬
lar will drive them away. Statis¬

tically it would amount to
crease

if

ers

tion

country draws
balances

cotton

motor

or

de¬

a

in assets owned by foreign¬
some

American

to

on

its

for

pay

locomotives

or

but such transac¬

cars,

would

not

by itself disturb

the foreign exchange market.
The thirteen billion foreign in¬
vestments

really

are

for

amount

the

small

a very

American

Britain

omy.

tion

alone

econ¬

had

once

twenty

ought to be made from these

forty billion dollars for duplica¬
tions, inasmuch as French, Dutch,
Swiss and Germans had invested
ish

in Britain and Brit¬

money

foreign companies,
neighboring continen¬
tal
countries, and vice versa).
Whatever way one figures it, the
American
• foreign
investments
organized

in their

small

for

the

richest coun¬

This becomes
even more pronounced if one de¬
ducts
the
4,375 million dollars
American
capital
invested
in
Canada which, despite the politi¬
cal
and
monetary frontier, are
considered as like a domestic in¬
in the world.

capitalists (all

not include tha
debts nor the lend-leasQ

figures

war

this

do

■

$

capitalist of
country, which until the first
individual

World

War

iluenced

G• CO.

tude

Louis Stock

Exchange
Chicago Stock Exchange

144

Garfield

Eckhardt-Petersen

&

0727

was

debtor

; a

by

be in"

motive of grati¬

any

towards

European capi¬

the

helped to develop the
railroads and industries of Amer®

Co., Inc.

ica, and, who, despite many losses,
a
good profit on balance.
Neither will
the individual
in¬
made

1811 South Broadway

:

CEntral 7259

Bell

St. Louis 4, Mo.

consideration the

vestor take into

Teletype SL 46

whole
for this
country, which will spring from
favorable

world,
the

and

the

for

results

quick

"and

underwriters

fi¬

mone¬

talists who

St.

(Associate)

safest
as

tarily, by far the greater part of
these foreign owned assets will
either stay here as-such or be

The

Members:

Stock Exchange
New N^York
York Curb

only

United

well

as

which

us

country, will certainly not

DEMPSEY-TEGELER

for

purpose,
and under what
conditions these foreign
balances

old

ISSUES

HERMIE ZINZER

*ra

and
per¬

what

these

BOB WALSH

EMMET BYRNE

in
bal¬

nationally.

nor

do

length

amount

bank

advances of this war).

JERRY TEGELER

over

foreigners

creditors
the same

not

vestment by many

INQUIRIES

LOUIS

of

similar

a

are

sonally

try

506 OLIVE

SOLICITS

States

investment

securities,

etc.

ances,

look

341, 342

•it-

OUR TRADING

capital
countries

?

about

own

American

some

Chicago Stock Exchange

£ FOURTH & OLIVE STREETS

gross

figures
and in¬

United

hand,

or

York Curb

the

thirteen thousand million
dollars.
On
the
other

•

•

Members
New

be

ex

billion dollars of
foreign .v investments,
and
the
European continent probably at
least as much (a certain deduc¬

ESTABLISHED

u

a v

foreign

about

MIDDLE WESTERN SECURITIES

r

too

for future transactions.

abolished

domestic

should

AND
<r*.

too

trary to our prediction, this capi¬

nostalgia of securities or,
correctly expressed, a pref¬

have

of

American

to fear that

reason

no

great an export of capital and a
scarcity at home.
But if, con¬

cer¬

the

r

,vi

dividuals

found a new normalcy.
The ac¬
quisition of foreign securities by
special holding companies, invest¬

American

should', exceed

pected amount.

the United States and
the United Kingdom awaiting the

subsidiaries

of

the new. treaty

With

question.

and international valuations have

trusts

with foreign
This \ is
the
tax

between

be

have

could termitime if the caoitai

According ^ to
latest
published, the companies

fixed

disappear, one
say b automatically
soon as
the Euro¬

even

export

point to be

a

decree

it

erated

and

easily provide that

nate it at any

more

one

could

presidential

investments.

as

tions

7826

free

is

One

cleared in connection

be

which

transactions

ment

SPRINGFIELD, ILL.

to

There

do. not like will certainly be mod¬

some

TELEPHONE:

the

before
•

barriers

4744

NEW YORK, N. Y.

were

loans

War.

first World

pean

WHITEHALL 3-9394

MYERS BLDG.,

not

the

he preferred

ordinarily

securities

disappear,

CENTRAL

BROADWAY,

was

quoted in London, or vice versa,

may

1887

459 NORTH EIGHTH STREET, ST. LOUIS 1, MO.
TELEPHONE":

Certainly a
buy the

could

Exchange of the creditor country

ESTABLISHED

I-

formality

a

Germany.

investor

con¬

as

V /'V

to

versa,

arrangements for certain Russian

A. G. EDWARDS & SONS
•

than

more

for

loan

British

tional

.*

vice

and

costing time and expense, and
allowing a profitable arbitrage
business to the experts.
One may remember the various
issues of the Dawes and Young

but

certificates

of

not

was

certificate

from

share,

Government

was

some

issue

the

tendency

a

soon

as

ditions warrant it.

foreign shares which alone may
be good delivery
at the Stock
is

etc.

for

and

loans

external

ternational sales.

the

on

The

respective capital markets
worked as a relative, though not
absolute, obstacle to untimely in¬

few years, or if we

Ihave

:

of.

the

going., to have an absolutely un¬
restricted foreign exchange mar¬
world,
a

This is nothing new or

unheard

were often re¬
stricted to foreign ownership and
the issue of separate tranches in

ket in most countries of the

at least for

guards.

of many nations

disturbances.

den

Foreign Investments

years
unavoidable, therefore, to
keep the repatriation of such for¬
eign investments within bounds
or to surround it with some safe¬

freedom

repatriation

of

6, 1945

least

not

in

Britain

western

Europe.

recovery

continental

not a sud¬
change in
proportion of the national
spending
and
saving,
one
can
hardly expect a high marginal
But providing there is
den and fundamental

distributors

the

•

Fifty-Five Years of Investment Banking

Retail outlets for

UNDERWRITERS

-

DISTRIBUTORS

-

DEALERS

UNITED .STATES GOVERNMENT

securities

INDUSTRIAL, PUBLIC UTILITY, RAILROAD
REAL ESTATE, BANK and INSURANCE SECURITIES
LISTED and UNLISTED BONDS & STOCKS

Teletype

SL 436




Building, St. Louis 2, Mo.
Central 9626
L. D. 240

additional

great

American

the

of

more.

the

not

all

This

claim,

the

some

as

pessimistic view
future.
It does

"selling

short."

is

not,

is

a

American

mean

States
it

in

To

the
United
contrary,

the

of the very
American eco¬

outcome

consciousness

of

strength
and productive
capacity and of the wish of the
people
to
increase
their indi¬
nomic

Peltason, Tenenbaum Co.
Bell

or

people
STATE and MUNICIPAL SECURITIES

the

which

probability would
like to save, i.e., to invest out ot
a
national income of 125 billions
people

over-the-counter

Landreth

for

return

amounts

Stifel, Nicolaus & Company
I

ST. LOUIS

NCO RPORATED

•

vidual
All
scale

CHICAGO

fined

savings.
arguments for a

our

investment
to

have

western

the

Scandinavian)

(Continue^,

European
on

page

1

•

large-

been con¬

(and
coun-

1117)

v*

1117

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162

Volume

Future American

Security Traders Club of St. Louis

Foreign Investments
(Continued from page 1116)

and

especially to Britain.

are

good reasons for put¬

ting them

into the foreground of

tries,
There

have peace in Europe
time
and, "after
the

considerations; 1 First, their
resilience, their prospect ;, of re¬
cuperation, is for superior to that

our

other
countries.
Secondly,
from -Russia
and China,

of

for

a long
defeat of
Japan, also in the Pacific, even if
some

nations do not exactly
other

each

or

certain

hate

patriots

love

individuals

some

their

of

com¬

own

than anybody else.
possibility

more

consider the

aside

But if

which: are: special cases of more

of

political decisions and
therefore in the main of govern¬
ment financing, or what comes to
the
same,
of the . International
Bank for Reconstruction and De¬
velopment, the amounts which

permanent international tension,
not to speak of actual war* in this
case it will be of even greater im¬

less

or

needed and can reasonably be

are

during

invested

the

five

next

are so much greater in
these western European countries
years

South America or* other

than in
more

agricultural regions, especi¬

ally if we include the mining and
oil drilling. in British :and Dutch
colonies
and- dependencies and
the British Dominions.
Third,

these

countries, especi¬

portance

first

the

Make them solvent,and able

from Brazil, Argentina,
India and Iran, and most of the

problems of the South American
Asiatic

and

with

solved

will

countries
very

be

-moderate for¬

eign capital for years to
Contrariwise, if Europe is

now

on

will be
for

the

this military aspect,

one

of

line

defense

Herman J. Zinzer

E. K. Hagemann

Joseph G. Petersen

As

to

Eckhardt, Petersen & Co.; First Vice-President: Walter

President: Joseph G. Petersen,

River,

souri

can

the

from

separate your¬
problems of the

they had better look at the
enough

Rockets,

experience of this war.

in

Europe,

through space 250 miles.
In

another

war,

.

.

are

.

it

...

yours,

or

enough to

brave

say

landing
You cannot be iso¬
won't

be

of Europe
whether we like

So the problems

lated.

bold

you

are

here?

shooting

were

or

rockets

those

before the termination of hostili¬

ties

Co.; Second Vice-President: Mel Taylor, Semple, Jacobs

ours,

not."

WHITE & COMPANY

a poor

i. m. simon & co.

ture of these colonial countries to

Mid-Western and Southern Securities

Chile

V"

■

•

-VV'K" eft V*'£/.

•

PRIMARY

financing

no

and

..

.

consumer

of Guate¬
prevent a
world depression, and such de¬
pression would
make the new
railway or the improved agricul¬
terials,

mala

Exchange

Members St. Louis Stock

come.

and a rela¬
of raw ma¬

of foodstuffs

buyer

C. Haeussler, Paul

& Co.; Third Vice-President: E. Ken¬
neth Hagemann, G. H. Walker & Co.; Secretary: Herman J. Zinzer, Dempsey-Tegeler & Co.; ^Treasurer: i
Eisenhower's words:
"If there be
Robert M. Guion, Newhard, Cook & Co.; National Committeemen: George M. White, White & Co.; Bert
a few misguided people that be¬
H. Horning, Stifel, Nicolaus & Co.; Jerome F. Tegeler, Dempsey-Tegeler & Co.
,
lieve even you, here on the Mis¬
Brown &

be allowed to quote General

may

•

tively small

Jerome F. Tegeler

Bert H. Horning

Robert M. Guion

United States.

of foodstuffs and raw materi¬

buy

of Europe which

for all times from

world

to

strengthen the ram¬

to

this western part

selves

ers

of

parts we watch on the other shore
of that sea which rightly has been
called the modern Mediterranean,

ally Britain, are the great import¬
als.

we

less peaceful development,

a

will

MARKETS

V.

A

IN

BANK &■ INSURANCE STOCKS

Business Established 1874

OF

THE

NATION

financed, by
American and
other foreign capital unprofitable.

be

This

does

not

mean

should

not

be

some

that

financing of other countries
in the

near

first

All

our

arguments

are

ALL MIDWESTERN AND LOCAL ISSUES

New York Curb (Associate)
Chicago Board of Trade

Exchange

New York Stock

St. Louis Stock Exchange

even

future, but in order to
things first, to establish
an economic priority,
a schedule
of relative importance, the Amer-:
ican private investor who is will¬
ing to put some money into for¬
eign lands should look for the
next few years mainly to Eng¬
land, France, Belgium and Hol¬
land, and to the mineral devel¬
opments in other continents.

do

MEMBERS

there

long-term

based

ST. LOUIS 2

315 North Fourth Street
Bell

Telephone—Central 3350

Teletype—SL 288

SAINT LOUIS

MISSISSIPPI VALLEY TRUST BLDQ.
CENTRAL

TELETYPE

0282

Private wires to:

Chicago, Kansas City and Los

ty MO.

SL--4W

.

Angeles

on

the assumption that we now shall

Kinse

Brennan,
OLIVE STREET

418

ST.

LOUIS 2,

MISSOURI

■

St. Louis Markets

Local Bank Stocks

EMMET

J.

.?.

BRENNAN

R.

FFERING

KINSELLA

and

the kind of service

General Market

.

-y.■•:

-

f

' ;

■■

.•

v..

^7;

'

Securities

the trader likes...

UNDERWRITERS and DISTRIBUTORS

Ill

of
;

;

INSTITUTIONAL and CORPORATION

Members

Si. Louis

Stock Exchange

BONDS and STOCKS

TRADING

SERVICE IN ALL LOCAL
•

..

Stix
SOS

t

&

OLIVE

L.'

Co,

STREET

V,

^

7*

MEMBERS

ST. LOUIS

m

CO.

NEW YORK

ST. LOUIS

STOCK EXCHANGE

''V.

*

*"'

•

\

*

•

Street, St. Louis 2,
.C,

.1-

7

-f:

Mo.
V

PRINCIPAL
..'**%/'-•

0514

Bell Teletype SL 80

G. H. Walker

•

MEMBERS
319 North Fourth




....

,

0. H. WIBBING &

ST.LOUISI.MO.
Telephone Garfield

ISSUES
■'
r

r

Long Distance

71

Western Union Phone

Teletype SL 158

'

EXCHANGES

&

Co.

PROVIDENCE

! I'

to be legal
province
on

land, but the insurgents continued
their agitation - for more
radical

penalty of liquidation of debts.
11. Development of natural re¬
sources in reserved areas through

action, and might have ousted the

Alberta

10.

steer a middle course

between

of debt-free money

1. The issue

f
(Continued from page 1077)
justment Board to require the
debtor to make speedy payment.

the

tee of

i

in

opposing interests, a commit¬
left-wingers in the cabinet,
consultation with John Har-

negotiable within the province.
2. A central Credit House with
branches throughout

leader of the Social Credit

price discount sys¬
tem.
Retailers would deduct a
discount from their prices and be

t-

Effects
*

-•

Unfavorable

grave,

Meanwhile, the Aberhart Gov¬
ernment
was
getting
into
hot

depression still was
Alberta's credit had been seri¬

water, as the
on.

ously damaged,

and the business
the re¬

interests were demanding

peal of all the objectionable legis¬
lation.
On the other -hand, the
Alberta Basic Dividends Associa¬
tion was clamoring for early pay¬
ment, and the left-wingers of the
Party were urging"1 the Govern¬

drastic

action

in

ment

to

strict

conformity with the Doug¬

las

more

Party in Great Britain—the Green
Shirts—drafted a plan for pure
social credit based on the three

primary principles of the Douglas
system:
dividends to increase
buying power, compensatory price
discounts to control prices and

prevent inflation, and a debt-free
medium of exchange whicn circu¬
lates

lature

the guidance

of the Legis¬

While Mr. Aberhart was

trying

Jan. 6,
following 11

public, the committee, on
1937, laid down the

doctrine.

of the

and the information

guiding principles of social

credit:

financial

system

outside capital.
Although the insurgents, in this

and
>

not

by

A retail

report, had put their cards on the
table, Mr. Aberhart hesitated to
approve it altogether,, fearing a
reimbursed in Alberta currency:
constitutional crisis. Major Poug4. A
Government propaganda
las sharply
disagreed with the

bureau.
5.

Extension

provisional wholesale set¬
up to handle Alberta's import and
expert trade. This bureau, for in¬
stance, would buy wheat with Al¬
berta money and sell it for Can¬
adian currency which v/ould be
A

used in future trading.

money or
9.

Canadian currency.

compromise

a

Social

new

providing for

Credit

consumers' div¬

idends to be

paid monthly, estab¬
lishment of credit houses, inter¬
est-free loans for agriculture and

the

and

industry,

creation

of

a

credit certificate retirement

sion

cial

Credit

members

whereupon

Mr.

Hargrave

that the Government
would not or could not follow his
Finding

advice, Mr.
Hargrave; left the
province; As he shook the snows
of
Alberta
from
his
feet,
he
stated that he had found no social

the fact

that the Government lacked tech¬

Having failed in his mission,
Hargrave went home to Eng¬

main

the

But

Board

of

five

should

who

-:

House

select

technical

of

commission

feasible

real

for

social

a,

experts

and, with their help devise

a

plan

credit

to

presented to the Legislature as
soon
as
possible.- The bill was
given royal assent by Lieut. Gov¬
ernor
J. C. Bowen on April 14
be

1

1937.

Pursuant to this legislation the

Board consulted Major

new

Doug¬

who, though declining to

las

Mr.

registered citizen.

the

ior

Major Douglas does not quite un¬
derstand the situation."

Monthly dividends of $5.00 to

every

introduced
Bill

nical knowledge and courage.

~

put

suggested by the Hon. Solon E
Low, Provincial Treasurer, who

retaliated by saying; "I am afraid

credit in operation, due to

v

'

8. Interest-free loans of Alberta

Premier

fund,
change was provi¬
for the appointment of a So¬

plan,

ad¬

of legislation

justing public and private debts.
6. Reduction of taxation by the
issue of interest-free money.
7.

freely.

For

3.

the

credit

social

a

the province.

money

within

tender

Social Credit In Alberta
to

Thursday, September 6, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

come

Alberta in person, sent two of

to

his

G. F. Powell,

men:

"efficiency

expert,- and L. D, Byrne, "techni¬
cal expert"; but as the Constitu¬
tional crisis which both Douglas
and Aberhart had feared was al¬

ready. under way they might

have stayed at home. Mr.
Powell, indeed, in attacking the

W. E. HUTTON & CO.

s

banks and nine prominent citizens

ESTABLISHED 1886

as

CLAIR S. HALL & COMPANY

"bankers' toadies" got into seri¬

ous

trouble with the law of libel

and

was

glad to go home-to Eng¬
but Mr. Byrne has remained

land ;

¥

valued advisor of the Gov¬

a

as

ernment until the present

Members New York Stock

day.

The Constitutional Crisis

Exchange

constitutional crisis arose,

The

the Alberta Government might

as

CINCINNATI 2,

as

well

OHIO

expected, because of the fact
province had exceeded
its power under the British North
America Act of 1867, which is the
constitution of Canada. By this

have

the

that

provinces were given jur¬
over matters of local inr

act the

isdiction

municipal gov¬
roads,
property, and civil rights. To the
including

terest,

ernment, prisons, hospitals,

Investment Dealers and

Dominion Government were

Underwriters

Indianapolis Bond and
Share

powers

provinces were reserved to
and, in case of con¬

to the

the Dominion

Corporation

of

flict

Dominion

the

powers,

provinces.

the

override

could

INDIANAPOLIS 6, IND.

129 EAST MARKET ST.

given

affecting
national interest, such as defense,
banking, currency, and interest
Moreover, the powers not granted
those broad

all

Also, the Dominion was given the
right to disallow any provincial

'-r'v"

act.

Already,

19, 1937, in

Feb.

on

connection with six cases brought
before the Alberta Supreme Court,
Justice A. F.

INDIANA SECURITIES
UNDERWRITERS

—

DEALERS

—

DISTRIBUTORS

the

Debt

All

Four

judgment

Types Unlisted Stocks and Bonds

INCORPORATED

CIRCLE

INDIANAPOLIS

court

who

ruled

province that the right to
been taken
Ives

of

the

Act.

actions

court

—

"You can see

said:

what it does to the

America

We Maintain Active Markets

question, Mr,

by the act in

Justice

provisions

—

Interest Act,

in such cases had

away

Teletype IP 489

constitutional
British North

prohibiting
government

By
the

all sorts of

regardless

of authority."

Shortly after these
60-day

,

Asphalt Common




Columbus 15, Ohio

Riser, Cohn & Shumaker, Inc.

ures

By

INVESTMENT SECURITIES

with
CIRCLE TOWER

.

INDIANAPOLIS 4

BLDG.
;

•

.

on
before

Court and
four
maturing bond issues. Mr. Aber¬
hart admitted, also, that he ha«
been unable to keep his promise
as
to payment of dividends, bu
assured the people that the Gov¬
ernment would "take final meas¬

Formerly BancOhio Securities Company

;

private

moratorium

contracted

ments of

Indianapolis Street Railway 5s

High Street

decisions the
declared a

——

the Supreme

offered half-interest rates on

Terre Haute Malleable Common
Indianapolis Bank Stocks

51 N.

Government

January,
1936, decided to ignore the judg¬

debts

Delta Electric Common
Mastic

legislation

could pass

Alberta

INDIANA ISSUES

similar

later, a

rendered in the
by Justice W* C* *v£s'
unconstitutional the

cutting
interest on
Provincial
bonds, savings certificates, and
guaranteed securities.
Commenting on the contention
sue

1, INDIANA

Telephone Lincoln 5535

days
was

same

of the

1924

TOWER

dealing

vires as

Provincial Securities

-

City Securities Corporation
417

ultra

Act

declared

Settlement of

primarily with interest, a legisla¬
tive field reserved to the Domin¬
ion.

MUNICIPAL BONDS

Ewing had

Reduction and

:

I

for further
way

the

action."

of thus

people and as a

of defiance to the courts
,

<

.

keeping fa"

(Continued on page

gestur
and

H*9)

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162

Voluftie

Cincinnati Stock & Bond Club

Social Credit In Alberta
(Continued from page 1118)

'

tions,. debts

>

tered

debts, v
—
Strange to say,

the government
appealed for help from their

the chartered
banks. ; In a circular letter sent
out on July 22, 1937, the Hon. S. E.
Low asked the banks to cooperate
with the government "so that div¬
idends, taxes, and debts may be
dealt with promptly and in accord
bitterest

enemy,

extraordinary suggestion by Ma¬

the province

that

Douglas

jor

for
repayable without in¬
failing that, should call

should touch a chartered bank

$5,000,000

terest, or,
on holders of stocks and bonds to

Alberta

exchange them for new
securities paying 1%.

comparatively

banks

and

to

one

control

passed again, and a new bill was
passed imposing special taxation

in line with an

This action was

that

the press. The Credit Regulation
Act so recently disallowed, was

people."

with the will of the

Acts Declared Unconstitutional

questions at issue were
to
the
Supreme
Court
and, after hearing both
sides, decision was rendered on
March 4, 1938, when the court
ruled against Alberta as follows:

000,

on

chartered banks, esti¬
yield more than $2,000,the ground that "credit

costs the banks

nothing."

Governor-Gen-

disallow

to

legislation

pro¬

found

were

valid and unrestricted.
Powers of the Lieutenant-Gov¬
to

ernor

provincial legis¬
signification of the

reserve

lation for the

pleasure of the Governor-GenA-al

The Press Control Act, strongly

by Major Douglas,
was
designed to empower the
government to commandeer space

were

newspapers for gov¬
statements and to force

found valid and unrestricted.

The Alberta

ulation

bills

Alberta

ernment

the

of

Powers
vincial

recommended

in

referred

eral-in-Council

the

upon

mated to

taxation

bank

found unconstitutional.

Mr. Justice L. A.

that

clared

control reg¬

press

the

and

were

the

Parlia¬

ment alone had power to control

ernment

that the press

policies and doings.
were

present¬

ed to the Lieutenant-Governor

on

the freedom of the press and

said
bill represented an
interference with the workings of

the parliamentary system,.
The bills taxing and regulating

reply to the circular letter,

Oct. 9, 1937, but royal assent was
reserved in the following terms:

Sidney H. Logan, President of the
Canadian
Bankers'
Association,

"His Honor, the Lieutenant-Gov¬
ernor doth reserve these bills for

clared unconstitutional

banks were ready

the signification of His Excellen¬

to the Dominion Government.

In

the

that

said

and willing to make

their facili¬

cy,

available to the

government

ure

ties

and the public, as heretofore,
sofar. as the
services they

"in¬
are

perform are within the
provisions of the Canadian Bank¬
ing Act, and in keeping With the
principles of sound banking." ,

asked to

Action Against the Banks

Having thus put the banks on

record, Mr. Low introduced be¬
fore a special session of the Legis¬
lature

bill to license and regu¬

a

late chartered banks
the

province;

Operating in
second bill to

a

block all appeals in Alberta
on

courts
the constitutionality of Provin¬

the

therein."

with

retreated

position

The

Premier

consent

from

and

Aberhart,
of his cabinet,

his

indefensible

the

requested

Do¬

credit

Social

Credit

Government

refer

to

the

scheme,

ferred

Act,

parent

the

to

had not been re¬
courts, but Chief

volunteered

ing

the

opinion

unconstitutional

with

the

reserve

as

that

who refused to take

put the licenses in question* These bills passed the Legisla¬
ture on Aug. 6, 1937, and were
formally approved by the Lieu¬
tenant Governor. Naturally, they
speedily to the attention of

came

the Dominion Government, where¬

the Prime Minister, the Bt.
Hon W. L. Mackenzie King, in a

upon
l

powers

the Dominion Government in re¬

disallowance

spect to money, banking, and in¬
ter-provincial
trade
and
com¬

preme

as

well, to the Su¬

Court of Canada. This time

merce.

the

Dominion

stead

of

in¬

Government,

disallowing

the

bills,

complied with Mr. Aberhart's
quest.

re¬

V

Commenting

on

S.

Hall

W.

Power

Clancey

F.

Lloyd

Loveland

O.

W. Shepler

President: Clair S. Hall, Jr.,
W. Power Clancey, W. P.

Clair S. Hall & Co.; First Vice-President:
Clancey & Co.; Second Vice-President;
Franklin O. Loveland, Field, Richards & Co.; Secretary: Lloyd W.
Shepler, Merrill Lynch, Pierce, Fenner & heane; Treasurer: Clifford
Grischy, Edward Brockhaus & Co.
which

called

were

in

question

cannot be enforced and the whole

Social

Credit structure, flimsy as

it always was,

has collapsed. The
triumph of sound con¬
stitutional procedure and clears
the way for the gradual restora¬

result is

tion

a

of the

complete rehabil¬

of the province as a co¬
operative entity in the conferation
of the provinces."
Was this a prophetic utterance?

itation

It would almost

seem

so

in view

of the fact that since the debacle

the

and

passed in Alberta,
crediters

social

nomic

problems.

Social Credit Party

Survives

purely pro¬
vincial movement was dead, but
Social

the party

Credit

as

a

survived and prospered,

according to the well known habit
—almost a law—of organizations
to
continue after their original

has been accomplished or
(Continued on page 1120)

purpose

important social credit legis¬

these devastat¬

ing decisions on March 5, 1938, the
Montreal
"Gazette"
editorially
said: "The acts of the Legislature

SECURITIES

OHIO
WALTER, WOODY and

Corporate and Municipal

HEIMERDINGER
403 Dixie Terminal

Building
CINCINNATI 2, OHIO

Field. Richards & Co.

Phone Main 5072
Bell

System Teletype CI

188

Specializing in the purchase and

CLEVELAND

cincinnati

trading of municipal and municipal
revenue

securities

of

all

states.

-

The request was indignantly de¬
nied by Mr. Aberhart who, in

long message to Mr.
"We respectfully sub-

concluding
King, said:

a

fnit that we
mandate of

compelled by the

are

people to proceed

our

"Special Situations"
This

with the enforcement of our leg¬

firm

plus

islation, and with due deference
we

of
be

suggest that the responsibility

hart's

message

Mr.

CO.

York Stock Exchange

New York Curb

Cincinnati Stock Exchange

continued trading interest in
securities of a few Ohio

Associate

.Investment

unusual

possibilities.

Brokerage Service

Aber-

received,

was

active retail distribution,

New

a

companies of

questioning its validity should
assumed by those desiring to

render it abortive."
A few hours after

offers

W. D. GRADISON 8
Members:

for Individuals • Banks *

a

Institutions

hieeting Of the Dominion Cabinet
i

was

called

tion

were

JOHN E. JOSEPH & 00.

and the acts in ques¬

disallowed.

18 EAST 4th

The disallowment aroused con¬

sternation and indignation in Al¬
berta and protests came from Ma¬
jor Douglas and many other so¬
cial
credititors
at
home
and

LISTED and UNLISTED

SECURITIES

STREET
Dirfie Terminal

CINCINNATI 2
MAIN 4640

CI 567

Building, Cincinnati 2,

Tele. CI 68-CI 274

Suite 405-412

Ohio

Tel. Main 4884

abroad, questioning the right of
Ottawa to disallow and insinuat¬
ing that the banks controlled the

policy of the Dominion Govern¬
ment.
s

the
d

a

vate
ary,

udg-

and
four
ber-

had
mise
but

Encouraged by these pro¬

tests

and backed by the most of
the social credit members of the

Legislature,

Mr.

Aberhart

Municipal Bonds

Unlisted Stocks

de¬

minion
ised

banks, defied the Do¬
Government, and prom¬
drastic

more

against them.

In

a

legislation
V

letter to Pre¬

mier

King he said: "Our legisla¬
tion is still
law, and will remain
law until declared ultra vires
by
CAREW TOWER

The

faith
the

>'

W. P. Clancey &

the court."
More Legislation

)

OHIO

SECURITIES

nounced the

ov-

ture

Corporation Bonds

first

step

yiSislation
was taken
i»37, when a
new

on

Aug. 25,

moratorium be¬

came

effective

march

1,1938, with certain

postponing




until

excep

Teletype CI 366

Branch Offices:

Co.

Cincinnati 2

CINCINNATI 2, OHIO

further

toward

Telephone Ch 6422
Cleveland—Akron

Parkway 2300

have

given more attention to financial
rehabilitation, the development of
resources, and other practical eco¬

credit of Alberta and

for the eventual

no

lation has been

Mr.

to

Canada.

of

proposed acts, and the question of

Aberhart, re¬
quested the Alberta Government
to refrain from enforcing the new
legislation until it could be re¬
ferred to the Supreme Court of
telegram

it

interfer¬

cial laws; and a third bill designed
to close the courts of Alberta to
all bankers

de¬

invad¬

as

Justice Duff and Mr. Justice Davis

was

minion

course,

act and corner stone of the social

this,

the

of

were,

ing the field of banking reserved

the Governor-General's pleas¬

After

banks

Clair

Cameron de¬

Federal

the papers to divulge the sources
of their information about gov¬
These three bills

4:\

All the

then

Following

ducing rates on

now

co-opera¬

mild action the Legislature passed
two bills for control of the char¬

legislation, .especially that re¬
public and private

ous

to

1, 1936.

reinforcing previ¬

repeating and

owing

tives and contracted prior to July

Dominion Government, in April,
1937, the new Social Credit Act
and three other acts were passed

lllfli

Teletype CI 284

i

The First Year After World War I

Social Credit In Alberta
large, the support of the business
who, fearing Socialism

(Continued from page 1119)
largely failed. Moreover, the
Alberta
Government — largely

interests

has

the devil to the deep sea.

fairly honest and eco¬
nomical administration, had tided

province

a

and

desperate time of depres¬
sion; had improved the school
system, had gained experience
and wisdom, and could be trusted
over

than Social Credit,

preferred
Besides,
they were assured that the ques¬
tion of public debt would be set¬
tled by the Social Credit party—
more

composed of schoolmasters—with
all its
vagaries, had given the

a

it

so

A New Debt Redemption Plan

of

pretty well for some

on

and

come,

surely

better
con¬

won

the

Legislature,

presented

bills the Alberta Debt

in

trol in Saskatchewan and tried to

two

lead

ganization Plan, providing for the
payment and refunding of the
provincial debt of some $113,000,000. The plan provided for an im¬

Alberta

also

along the path

of Socialism.

It

not

surprising, therefore,
that the Social Credit party, in
spite of backsets, won 36 out of
57

seats

and

of

was

51

in

out

election

the
of

57

in

of

1940

the election

In fact, in the
it
had, by and

Augusts 1944.

latter

election

Holders

obligations which
15, 1945, will
receive in exchange, on a par for
basis,

par

new

mediate

cash

payment

Reor¬

3V2% serial deben¬

of

more

than

day, in moving

June 9 the Federal Reserve Board

of special value
to

of

cleared

have

old

issues

for

the

an

interest in

•v-i,

CLEVELAND BANK STOCKS
or

Securities Listed Cleveland Stock

last

of

all

Not

the

Canadian

only will

Exchange

/

their

CORB LISTON

Prescott

&

Co.

The

quantities.
the

12

months

net
was

outflow for
$291,651,202,

by

no

we

and

have the

of any

means

United

abandoned

(as far

Re¬

States
as

being

once

more

the outside World

was

alizing that they can make little
or
no
headway in the province,

tion to the broad field of the Do¬

because of the stone wall of

minion

largely

con¬

limitations, they have

transferred

their

June,

atten-

were

Parliament, to which in
1945,

13

social

crediters

On the other

trade

with

un¬

willing
against
rigidly

such

step seemed imperative be¬
of the tremendous
addition
made since the beginning of the
a

to

war

The

the

drop

in

1580 UNION COMMERCE BLDG.

1920

CLEVELAND

14, OHIO

New York Curb (Assoc.)
Cleveland Stock Exchange

MAIN 3262

case of the
exchange
London, Paris and Rome.
This matter of the depreciation in

the

exchanges is dealt with more
length in our review of the
foreign exchange market further

at

large amounts
(Continued

The Social Credit

30 Pine Str.eet

Toledo 4, Ohio

New York 5, N. Y.

Private

Wire

to:

Telephone:
Green

Teletype

Bowling

Teletype CV 283

NY 1-2978

Saunders, Stiver
Terminal

Co.

&

Tower

all

to

other incomes,

people's buying power

be always equal to the prices
of

sary

goods for sale," and the is¬
money at the rate neces¬
ensure continued expan¬
production and consump¬

to

sion of

It stood also for free enter¬

their propaganda on
stage of Dominion
indicated by the Hon-

was

Manning in

a

long brief pre¬

Aug. 6, 1945,
in which, referring to the alleged
chronic shortage of buying power,
premiers

he said:

on

■

of the Dominion Govern¬
ment, through the Bank of Can¬
ada, to monetize fully the realas

by

our

tization of that real wealth to sup¬

plement the ordinary public rev¬
enue of the Dominion and of the
Provincial Treasuries."

and Ohio Unlisted Securities

Press"
tive

Maintaining
most

trading

Ohio

markets

unlisteds

and

in

fast

accurate service in Cleveland-

Stock

McDonald &. Company

harp

on

of

"Free

Winnipeg

the

deploring the nega¬
futile phrases of Sas¬

who,

and

katchewan

Alberta

socialists and

social crediters, said:

"Eighteen
ism
true

Exchange issues.

are

not

-

.

talking social¬
going to advance the
men

interests

of

Saskatchewan a

jot.

Thirteen rubber-money en¬
thusiasts at Ottawa will not serve

Exchange

the
DIRECT

PRIVATE

WIRE

'

l. j. schultz & co.
Member

New York




to

jectives remains to be seen. Per¬
haps they should listen to the
editor

.V

will

Parliament

Dominion

their single
string and talk to deaf ears, as
they have so often
done, or
whether they will give and urge
more
attention to problems of
transportation charges, tariff rates,
export markets, monopolies, and
cartels, and pursue attainable ob¬

securities

CLEVELAND 14, OHIO

■

Whether the social crediters in
the

continue

investment'-

Stock

represent¬

abundant natural pro¬
duction, and to utilize the finan¬
cial credit representing the mone-

Cuyahoga County Suburban Municipal Bonds

Member Cleveland

sovereign

the

within

lies

power

ed

CHICAGO—DETROIT—NEW YORK—CLEVELAND

UNION COMMERCE BUILDING

of pro¬

conference

the

to

wealth of the nation

CLEVELAND, OHIO

MEMBER CLEVELAND STOCK EXCHANGE

1001

dividend"

"national

a

addition

"It

9-2432
:

Charter, pub¬
platform,

carry on
the
broader

PRospect 4500

508-12 Madison Ave.

Bell

1121)

Hon. John H. Blackmore and the

sented

>

Telephone: Adams 6131
Long Distance: LD 71
Bell Teletype : TO 190

materials

page

including their chief leaders, the

E. C.

V
4:
f

of raw
on

Hon. Solon E. Low.

vincial

-

severe

particu¬

on

to

SECURITIES

i

a

exchanges,

larly in the

rates

politics

•

the

countries.

cause

prise, systematic retirement of
public debt, progressive reduction
of
taxation,
protection against
monopolies and cartels, and parity
prices for agricultural products,
together with various other meas¬
ures
advocated by all the other
political parties. That the social crediters intend

LISTED and UNLISTED

)■

to

was

"so that the

Teletype—CV 97

Members of

Exchange
Chicago Board of Trade

belligerent

effect

tion.

New York Stock

the paper currency issues

all

in

in

COLLIN, NORTON & CO.
ESTABLISHED

a

lished in May as a party

Arthur V. Grace & Co.
•

its

metal, the restrictions

cause

of the

: I

of

any

gold outflow being as
maintained
as
before.
Europe, being anxious to protect
its gold reserves at* a time when

sue

V

part with

stock of the

may

•V' I

to

demanded

Bell

hand, Europe (in the

which

the balance in
favor of the United States
was of
such huge dimensions) was

elected and all from Alberta,

14

PRospect 6300

unqualified gold

bulk

prov¬

GUARDIAN BUILDING
CLEVELAND

the

against net imports of $20,972,930
in 1918, net imports of $180,570,499 in 1917, $530,197,307 in 1916,

prov¬

characteristic theories.

stitutional

York, Cleveland and Other Principal
Stock Exchanges

on

on an

basis, the adverse balance had to
be settled by shipments of
gold

$420,528,672 in 1915.
The
Under ordinary circum¬
of the gold went to South below.
ince, but we shall be the only America (mainly the Argentine) stances the takings of our goods
province with full provision for and to the Far East (principally and manufactures by these Euro¬
redemption of our total debt over to Japan, China and India), and pean countries would have been
a certain period of
the explanation is found in the heavily reduced.
years."
As it was, the
The social creditors of Alberta fact that in the case of those purchases here were, as we have
countries the trade balance ran already seen, heavily increased.
have certainly changed their tune,
but even though they have been strongly
against
this
country. The reason was that with the
checkmated in the province, they This
being the
case
and the close of the war Europe needed
have

call

Members New

it

best

have

v

decks

when

restrictions

all

exportation of gold and thereafter
the
metal
moved out in large

sig¬

of

OHIO SECURITIES

V:;

the

removed

to

comes

lowest interest rate

you

and

dealing with the prob¬
lem of the post-war period—Al¬
berta's fine position will be the

interest

ance,

large

"It

$51,000,000 to meet over-due
securities at par value amounting
to $33,000,000, plus an adjustment
accrued

magnitude of the favorable bal¬

speech from the

throne, Mr. Ivan Casey said:
nificance

in

augmented still further by
silver exports, the United
States was obliged the last seven
months of the year to make heavy
shipments of gold abroad.
On

On this notable

be

and $3,091,005,766

1917

1916, and but $324,348,049 in 1914.
Notwithstanding the tremendous

Treasurer.

will

in

642

1980, plus an adjustment of un¬
paid interest for the last nine
years. The plan, it might be noted,
had been mostly prepared during
the previous; session by the Hon.
Solon E.
Low, then Provincial

the reply to the

exports was the largest

by; far in the country's history,
being $4,017,714,265,
as
against
$3,117,874,835 in 1918, $3,281,044,-

stock maturing from 1961

or

inces.

When

chandise

of

after June

.

Aberhart

Mr.

Federation, which had

to

part of the increase as compared
with 1914.
The balance of mer¬

five equal annual instalments.
mature

concerned)

(Continued from page 1112)

approxi¬
in

paid

be

in cash and 50%

to

than the Canadian Commonwealth

carry

time

to

years

tures

was,

having died on
May 17, 1943, his mantle fell to
the Hon. E. C. Manning who, on
July 24, 1945, at a special session

to

nine

mately 50%

Thursday, September 6, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1120

-

Cleveland

Stock

Cleveland

Exchange
-

Cincinnati

true

interests

of

Alberta.

is not that protest movements
at fault;
rather they should

constructive.
vote

fruitfully

The

for

It
are

be

should

rebel

what he be¬
against

lieves rather than barrenly

something he dislikes."

J

-

e

162

Volume

Number 4418

-

THE COMMERCIAL
& FINANCIAL CHRONICLE

The First Year Alter World War I

Cleveland Security Traders Association

(Continued from page 1120)
1,592,741,000 bushels in 1917. The
other things in order to re¬ barley crop and the rye
crop also
habilitate its devastated areas and fell below those of 1918. The corn
also for its economic reconstruc¬ crop
ran
better
than the poor
tion, while at the same time food yield of 1918, but below that of
supplies, which could not be ob¬ several other years; the official
tained elsewhere, had to be ob¬ figures placed it at
2,917,450,000
tained from us in order to avert bushels,
against
2,502,665,000
and

for

starvation

large

of

masses

people.

bushels
1917.

Agricultural Productions

Our

harvested

3,085,233,000
In

in

1918

bushels

the

South

the

proved the fifth in
short yields, with a

crop
From

agricultural

an

stand¬

point, the year proved a distinct
disappointment.
In 1918 when
the

still in progress the
had
extended
its

was

war

Government

guaranteed price for wheat
to

the

cover

1919,

in

raised

wheat

so as

to

crop

since

be

abundant

supplies of wheat seemed so es¬
sential, not only for the benefit of
the United States, but for its allies
and associates in the war,

the

cordingly
autumn

area

and
devoted

ac¬

under

the

wheat

sown

to

of

had

crop

The old

piration

also

most

favorable

crop

started

put in

auspices,
under most

circumstances.

tious

under

the

so

propi¬

Accord¬

ingly a wheat yield of

unexam¬

pled dimensions seemed in pros¬
pect.
But, as it happened, ex¬
pectations in that regard were
grievously disappointed—this, too,
notwithstanding that the plant
wintered unusually well so that
condition

of

the

winter

whole which

crop as a

wheat

Dec. 1,

on

1918, had been officially reported
98.5 stood April 1 at 99.8 and
May 1 at the phenomenal record
at

of

100.5.

cast

at

Accordingly,
that

probable

the fore¬
pointed to a

date

winter

wheat yield of
900,000,000 bushels and the pos¬
sibility of producing a full billion
bushels did not
the

question.

on

the

over

16,000,000

Congress before its
March 4 enacted

on

ex¬

law

a

appropriating $1,000,000,000 to

en¬

able the President to
carry out the

price

guarantees

ducers

of

made

wheat

of

to

the

Morton

pro¬

A.

Cayne

Clarence

F.

Davis

Richard N.

Cone

Wm. A. Koeth

Harry Gawne

of
1918 and 1919, "and to
protect the
United States against undue en¬
hancement of its liabilities there¬
under."

was

been

bales.

President

seed

series

a

cluding linters, not much above
12,000,000 bales; back in 1911 the

decidedly increased, far sur¬
passing the area sown to winter
wheat in the best previous years.
The

in

cotton

yield, in¬

stimulus of this guaranteed price
was

and

raised

The

provide

all

Act

new

blanket

the

crops

the

gave

authority
to
machinery for

handling the wheat from the time
when purchased from the farmer
until sold to the
consumer, with
control over millers,

jobbers

and

wholesalers,
importers,

bankers,

manufacturers, etc.

Besides

ap¬

propriating $1,000,000,000 as a re¬
volving fund to carry out the
guarantee,
discretionary powers
conferred

were

old agency for

to

continue

the

handling the wheat

crop or to create a new one.

The

bill also carried

cot¬

as

rider,

a

a

ton futures provision under which

only
low

13

grades

of

middling up)

ered

future

on

cotton

so

R. A.

cotton

be

can

contracts

(from
deliv¬

and

all

delivered must be classi¬

fied by Government graders. This
last minute legislation (it did not

become

a

law

(Continued

until
on

March

page

4),

Gottron

Corwin L. Liston

Ben

J. McPolin

Donald W. Plasterer

President: Morton A. Cayne, Cayne, Ralston & Co.;

Vice-President: Clarence F. Davis, First Cleveland
Corporation; Treasurer: Richard N. Cone, Finley & Co.; Secretary: William A. Koeth, Gunn, Carey & Co.;
Board of Governors: Harry Gawne, Merrill, Turben &
Co.; Richard A. Gottron, Gillis, Russell & Co.;
Corwin L. Liston, Prescott & Co.; Benjamin J.
McPolin, McDonald & Co.; and Donald W. Plasterer,
Hornblower & Weeks.

1122)

to be out of

seem

But from that time

situation

changed very
rapidly and prospects quickly be¬
came
seriously impaired; partly
by

reason

of

cold

weather

and

partly because of excessive rain in
certain regions and, finally, in the
Southwest
The result

winter

was

of

red

DISTRIBUTORS

rust.

that in the end the

wheat

yield

proved

no

Corporation Bonds

—

Stocks

than

more

it

because

731,636,000 bushels. As
happened, too, the spring wheat

crop proved a failure almost from

the start owing to a
variety of
circumstances and proved one of
the

smallest

very

on

record.

Equipment Trust Ctfs.
CLEVELAND

In

Municipal Bonds

the end the product of winter and

spring wheat combined turned
smaller

than

counted

upon

alone,

what

for

reaching

had

winter

only

Ohio and Middle West Markets

out

Canadian Bonds

CHICAGO OFFICE

John A. Kruse

Robert

Daniel M. Hawkins
Telephone

been

wheat

OFFICE

W.

Janshoff

Telephone CENtral

CHerry 0260

7400

Teletype CG 417

Teletype CV 496 & 497

940,987,000

bushels, or but little better than
the 921,438,000 bushels of wheat
harvested in 1918 when the wheat
crop

had

been

of

good

proportions, but by
to the best
previous
oats

crop

turned

1,248,310,000

record.

out

bushels,

1,538,124,000 bushels

to

be

as

in

The First Cleveland Corporation

OTIS & CO.

average

means

no

up

The

only

against

1918




and

Established

700 National City Bank Building
Cleveland 14, Ohio

PRospect 1571

Bell Teletype—CV 443

NEW YORK

CINCINNATI

1899

CLEVELAND

DENVER

CHICAGO
TOLEDO

believed that public

that "it was

The First Year Alter World War I
March 5.

This

One of the incidents or episodes

the

holidays

observed

the

attempt at
price stabilization in which Secre¬
tary of
Commerce William C.
Redfield was particularly promi¬
nent.
As it happened, the move¬
ment came to grief after several
was

year

an

weeks' earnest effort by Mr. Redfield.

At

called

on

a

conference

on

Feb. 5,

Redfield and at¬
by a number of former
of the more important diviMr.

by

action

evolving

plans for establishing a fair post¬
level of prices for basic com¬
modities.
This
meeting, which
war

followed

conferences

of

series

a

between

demobilization

of

the

the

so

many

would

return

result

of

on

if

the trend in that direction should

by

some

general

f|

scheme like that in contemplation.

r-i

The

Members

tion

New York Stock Exchange

(Associate)

Detroit Stock Exchange

deal with the situation.

proval of the proposal.

MUNICIPAL AND CORPORATE SECURITIES

contemplated that this

view

to

the

ernment

country to

ex¬

industry with
of

announced

formerly

of

the

War

departments ' and

other

facturers would be willing to sell
with a view to
maintaining or re¬

storing business activities to
volume."

The

a

of

Redfield

as

sociates

first

it

had

been

attention

their

that

evolved

of

called

to

Secretary

.

a

plan

to

including farm
that the signers,

and

products,

ap¬

that

Vice-

one

price

much

of

From the

stabilization
criticism

and

Sen.

the

plan
met

little opposition.
On the
hand there was impatience

further attempts of

any

kind at regulation on the part of
the Government and on the other
there

was

opposition from

certain sections of the

community

La Follette

"members of the Senate

speaking

their

States," desired to register a
protest and to be heard

decided

no

with any

Bob

for themselves and the farmers of

the matter "before it receives

on

sort of official sanction."

any

On
23, Mr. Redfield announced

Feb.

that the Board which he had ap¬

under the Chairmanship
N. Peek was to be

pointed

Secretary- added

Ransdell

Industries

Chairman

the Board.

on

the

evoked

with

hand

full

Georgia;

chosen by Mr.

had been

a

buyers would be justified in buy¬
ing freely and at which the manu¬

120 W. Michigan Ave., Jackson, Michigan

Redfield

N. Peek,

Mr.

Chairman

scale of prices at which the Gov¬

Ann Arbor Trust Bldg., Ann Arbor

18

George

com¬

formulation

Smith

Louisiana, and Sheppard of Texas

On Feb.

Board, Mr. Peek to select his as¬

amine conditions in

homa; Smith of South Carolina-

Wilson
his

Redfield

Mr.

to

industries

a

Ford Building* Detroit 26

cabled

President

15

Feb.

On

Board,

the

North

and

mittee should call into conference
the representatives of the basic
of

La

of Wisconsin; Gronna of
Dakota; Borah of IdahoCurtis of Kansas; Gore of Okla¬

Follette

time."

peace

was

M'-i

17

nance

Secretary Redfield to seek the ap¬
proval of President Wilson for the
appointment of a committee to
A state¬

and

beyond the possibility of mainte¬
upon the same scale during

meeting resulted in the adop¬
of a resolution
requesting

ment given out by Mr. Redfield
after the conference said that "it

Chicago Stock Exchange

first of all, "Unem¬

February

Lenroot

Senators

others

on

Senators—among

that prices were "high and un¬
stable, due to the effect of/ the
war,
which interfered with the
ordinary operation of the law of
supply and demand" to which he
added that "prices were inflated

tendencies would inevit¬

arrested

number of

a

rapidly increasing." - The Secre¬
tary also spoke of "a stagnant
condition of industry" and said

Price

ably force lower prices later

by

prices,

ployment of labor, now large

stabilization,
it was expected, would lead to the
resumption of active buying, then
held in abeyance out of a fear that
current

President Wilson

had

ferred to put

and
soldiers

have been cabled to

said to

was

stabilize

re¬

simply

prices
and
diminished
profits.
For instance, a protest

Redfield

statement

the

them

lower

Mr.

country,','

the

in

price stabiliza¬

tion would mean to

pected, as already noted—that in
an enumeration of the "conditions
confronting

army

that

feared

who

-^saying

Redfield

the

from

and

l'which

of

was

heads

Curb

price deflation—in all
particulars the year
turned out so differently than ex¬
ment

held for the purpose of
considering the industrial situa¬
tion with particular reference to
the unemployment which it was
ter,

not be

York

widely

and others interested in the mat¬

feared

Investment Bankers

New

significant of the views so
entertained in the early
part of the year as to the likeli¬
hood of trade reaction, unemploy¬
is

It

members of the Cabinet

tended

WATLING, LERCHEN & CO.

Ml

fidence

various

of

taken toward

was

from France.

♦

great value in establishing con¬
in a level of prices and
would
be accepted by bankers
and others as a basis for credit."
a

Board,
Gov¬
departments and others,

ernment

of

announcement of the conclusions
of such a committee would have

sions of the War Industries

representatives

Effort at Price Stabilization

arrangements might be made for
the; readjustment of trading to
meet the requirements of the new
law. |The Exchange had also been
closed March 4, on account* how¬
ever,! of the Mardi Gras celebra¬
tion at New Orleans, which was a
holiday on the New Orleans Ex¬
change, and an agreement exist¬
ing between the New York and
the New Orleans Exchanges by
which

also observed

are

by the other.

in order that

was

Exchange

one

(Continued from page 1121)
brought about the closing of the
New York
Cotton Exchange on

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

1122

of

George

known

as

the Industrial Board of

Department of Commerce. He
said that they were "to put into

the

practical effect a program for the

of prices for basic

readjustment

MORELAND & CO.
MEMBER

1051

DETROIT

STOCK

Mercier, McDowell & Dolphyn

EXCHANGE

Penobscot Building

materials in

■rv

create

the

The Industrial

trade—where

desired—fell in very

Listed and Unlisted Securities

the suggestion

Commerce.

of

TO

Offices:

Private

Gregory;

Wm.

Toledo—-Collin,

Wire

J.

Battle

Mericka

Norton

Creek, Bay

New

to:

&

&

Co.;

City, Lansing, Muskegon

York—Collin.
Co.;

Norton

&

CIeveland~Wm. J.

Co.;

Bonner

Mericka

Chicago—Hulburd, Warren

&

&

&

BUHL BUILDING

DETROIT

26, MICHIGAN

Co.;

Chandler.

CA-5752

the

Board
"to cooperate in the endeavor to
stabilize business conditions, and
the whole subject matter was re¬
ferred, with power, to a commit¬
tee."
After a number of confer¬
ences between steel men and the
Industrial Board it was announced
on March 20 that a full agreement
invitation of the Industrial

MEMBERS DETROIT STOCK EXCHANGE

Branch

March 6 it was

unanimously voted to accept

FOR MARKETS ON MICHIGAN
ISSUES

Direct

iron and

the

of

steel industries on

TELETYPE

he

readily with

of the Department
At a meeting of

representatives
NUMBER

esti¬
Board, he

assistance of the

the

The iron and steel

GOOD

his
pro¬

price stabilization was most to

Specializing in Michigan

A

the

and

Council of National Defense.

Corporate Bonds and Stocks

DE 75

to

could form necessary

had

Said,

as

base

could

purchases

mates."

DETROIT 26, MICHIGAN

fashion

a

firm foundation on which

consumer

future
ducer

Tel. Randolph 3855

a

such

DE-507

a new
In making
this known, Judge Elbert H. Gary,
Chairman of the- Board of the
had

reached

been

of

schedule

Corporation, took oc¬
that in lowering

U. S. Steel
casion

state

to

prices there

INTERNATIONAL

Michigan and General Market
H.

CAMPBELL

•

FRANK

P.

under

DETROLA CORP.

MEYER

A

rapidly growing company in the
radio and home appliance field.

Corporate Bonds and Bank Stocks

Analysis

on

C. RONEY &- CO.

.

MEMBERS NEW

NEW

Member Detroit Stock Exchange

1500

Buhl

Randolph




Bldgf.
2055

NEW
65

DETROIT

6

4-8101

YORK STOCK EXCHANGE

CURB

iov

sliding scale.
He added that it
not expected that prices dur¬
ing 1919 would be any low®rJudge Gary pointed out that the
objects to be secured are in re¬
vival and stabilization of business
a

was

reasonably low

of prices which would be
satisfactory
to
the
consuming
public and yet, so far as practic¬
able, would yield a moderate and
reasonable return to the inves¬
tors."
The Industrial Board on its

STOCK

BOARD

Bell

the

TRADE

Bldg., Detroit 26
Saginaw

System-—Carl M. Loeb, Rhoades & Co.

of

Board

purpose

a

statement

giving its approval

had

for

been

saying
to the

prices decided upon
carrying out tne

was

it had been

which

created and believed

System Teletype—-DE 167

Grand Rapids
Wire

issued

schedule

EXCHANGE
OF

part

that in

(ASSOCIATE)

Buhl

CHerry 6700

Broadway

Dig-by

YORK

CHICAGO

YORK

employ¬

employees providing

basis

JlRST OF JVflCHIGAN' CORPORATION
26

operating

contracts between

and

by establishing a

request

CLARENCE A. HORN

DETROIT

no intention to
in wages except

was

decreases

perhaps at some mills
ers

Municipals
DOUGLAS

make

upon

prices.

reached

that a ley®*

below

the public should not expect
buy during 1919. The purpose
fCnhtimipd

on

Dage

1123)

t
oi

Number 4418

Volume 162

THE

COMMERCIAL'

& FINANCIAL CHRONICLE

The First Year After World War I

Security Traders Association of Detroit fir Michigan

its success has been denied
(Continued from page 1122)
by the
the Board was to bring about such Director-General
of
Railroads,
a lower level of prices7 as'-would
by that denial the labor of the In¬

stability

effect

and { stimulate

dustrial

trade, to the end that business and
industry could proceed and build

with .confidence and r provide

up

maximum employment.- ;

;

Board

is

set

with

hand

one

with; the

;

/schedule

new

| of

nought

and

destroying it
April 18

other.'V On

1

The

at

arid; theGovernment is exhibited
as./sOttihg up On industrial policy

Washington/dispatches»stated

prices
day,

March 21, and provided for dras¬

that
President Wilson had directed the
Industrial Board and the Railroad

reductions in prices. .It should

Administration to reopen discus¬

into, effect

went

tic

added

the

next

sion and endeavor to find

that

these reductions
were
in addition to sharp cuts
in prices made at the close of 1918
(after the conclusion of the armi¬
stice) and which became opera¬
be.

tive Jan. 1, 1919.

A

of the

bined.

two

Thus,

ground
agree.
" The
proved

reductions

basic

8,

ex¬

iron,

marked

to

ton

down

$33

per

December

had

been

day,

Mr.

that

the

Administration
to

ask

steel

for

it

May

Hines

an¬

conferences
would

materials.

that

would

all

On

on

It

May
a

2

the

At¬

had been reduced

torney-General

regarded its
questionable
under

ac¬

tion

the

Decemberr

$4@$5

a

in

ton in

-marked / down
further $7 a ton.
In the case of
rails no change had been made in
were

December;
marked

they

<

down

for

ton

were

$10

and

$47

expectation that
than

those

would

priced
upon

to

fact that

two

latter

did

not

learn

of

occurred.

revived, while at the

ter

from

Peek

the

strike, first in the

and

later

mines,

the

time

steel trade

bituminous coal

latter

and

naces

the

at

re¬

depriving fur¬

mills

of

in

Demand

same

sufficient

a

April

Mr.

Hines.

Chairman

bound

trial

products.

inquiry finally became

The

and

when

steel

ruled

far

above

the

21, and high

premiums had to be paid in order
to secure immediate
delivery.'
The

Railroad

insisted

Administration

lower

upon

prices

than

those fixed for rails and
opposed
the March 21 schedule from
the
start.

Its

declination

was

to

be

field's

course.

file

of

Ray P. Bernardi

Ralf A. Crookston

Weeks.

correspondence

sincerely sorry that the efforts of

lie

\

and

Board

been

and

intended

the Industrial Board had met with

of

seller.

mediation

This, too,

partly because the pub-

members

some

itself

been

impression that they
prices, whereas the

serious check, but was afraid that
was

Young

Secretary Red-

made public also revealed
that under date of
April 18th the
President had cabled that he was

this

Neil de

H. Russell Hastings

President: Don W. Miller, McDonald, Moore &
Co.; Vice-President: Paul I. Moreland, Moreland & Co*
Secretary: Harold R. Chapel, Crouse, Bennett, Smith & Co.; Treasurer: Alonzo C.
Allen, Blyth & Co.,,

Inc.; National Committeemen:: Frank Meyer, First of Michigan Corporation; John K.
Roney, Wm. CL
Roney & Co.; C. Edwin Mercier, Mercier, McDowell & Dolphyn; Alternates: H. Russell
Hastings; aL
Buel Quirk, M. A. Manley & Co.; Neil de
Young, de Young, Larson & Tornga; Directors: Ray P. Ber¬
nardi, Cray, McFawn & Co.; R. C. O'Donnell, R. C. O'Donnell & Co.; Ralf A. Crookston, Hornblower &

The dissolution of the Indus¬
Board then followed as a

matter of

schedule fixed March

declined

John K. Roney

Ad¬

by the March 21st sched¬

urgent
that open market
prices for iron

so

the Railroad

first

and Secretary Redfield now
accepted them, sending to each an
identical letter under date of
May

9th.

steel

when

ule

of

and

Frank P. Meyer

and

ministration

supply of fuel, reduced the output
iron

Allen

the

their resignations to Mr. Redfield

and steel

C.

knowledge came to
regarding it through a let¬

them

great change in the outlook for

iron

A.

Chapel

discontinue

the other members of
the Industrial Board had tendered

fully

R.

Board, particularly

In the second half of 1919

was

Harold

message until

The

lower

in 1919

come

alized.
a

"

now

a

agreed

no

Moreland

Apparently this cable was
forwarded by the White House to
Mr. Hines, but not to Mr. Redfield
or
Mr. Peek.
At all events the

ton

a

for rails of open hearth steel.

best

of the

as

I.

Paul

law.

now

ton to $45

a

Bessemer

view

Miller

cablegram that

the Industrial

be

W.

appeared
President

$47.50 to $43.50 were now
$38.50.
Merchant bars,
plates and structural steel which
to

cut

Don

pro¬

competitive bids

Wilson had sent

reduced

and

end and that the Rail¬

an

ceed

later

from

further

held

road

for

$30, was now reduced to
Large steel billets which

$25.75.
in

from

com¬

however,

Several

were

1st

at

were

which the previous December had
been

the

nounced

com¬

pig

attempt,

futile.

fruitless of results.

were

a

which they could

on

conferences

fewjillustra-

tions will serve to indicate the

tent

mon

was

were

merely

between

of

under

ter

the

ury,

fixing

board
as

the

a

had
court

buyer and

the view of Car¬

Glass, Secretary of the Treas¬

road

lie did

who had sided with the Rail¬
Administration

troversy
statement

with

Mr.

issued

in

the

Hines.

In

May

on

precisely that which it had
do," and thai

been warned not to

the

con¬

action

had

been

repudiated by him

a

promptly

"contrary tc
principles of eco¬
nomics, of public policy and of
as

'fundamental

12th,

Secretary Glass stated that the
Industrial Board in attempting to

law."

"fix minimum prices for the
pub-

He

trip

said

(Continued

the
on

Treasury haci
page

t
fl

j

1124)

an¬

nounced

April 2 and made final
April
10.
Director
General
Walker D. Hines, of the Railroad
Administration, denied the right
-

of

the

pose

Industrial

price

a

Board

upon

the

to

DETROIT & MICHIGAN

im¬

were

too

and clung to the
prices
fixed
high.
He accordingly

that

Members Detroit Stock Exchange

MARKETS

Administration,
opinion

R. C. O'DONNELL & COMPANY

Railroad

the

DETROIT

took the position that the railroad

Administration

could not approve

them

as
being reasonable prices.
Chairman Peek, of the Industrial

Board,

on

the other hand, took the

CHARLES A. PARCELLS & CO.

ground that the stabilization
plan
could not be carried out success¬

fully unless with the complete
operation of all
departments
the

late

Government,

and

as

ESTABLISHED
Members

Detroit

Ray O'Donnell

1919

Larry Dilworth

Stock Exchange

co¬

Frank

639 Penobscot Building, Detroit 26, Mich.

of

"at this

date in the execution of the
Plan this
important essential to




Telephone—Randolph 5625

Kemp

Bell System Teletype—DE 206

.

/:

/

Underwriters, Wholesalers and Retail Distributors of

'

INDUSTRIAL COMMON STOCKS
•

i -

'

+■

Active

-ir

+

'

i

Trading Markets in
!•

MICHIGAN

SECURITIES

! '
in

•

]";
1;.

t

-

Baker, Simonds&Go.
Members

Detroit

Stock

Established

BUHL

BUILDING-

JLSXa X XVV/AA

Telephone—Cadillac

3670

Exchange

1920

AO

Bell

Teletype—6E

189

THE COMMERCIAL & FINANCIAL

1124

Thursday, September 6,1945

CHRONICLE

$750,000,000
placed at the price ing ~ the
revolving
(that is, $46 per ton for fund for the Railroad Administra¬
tion enacted into law, and
con¬
open hearth rails) , but under pro¬
ferred with the majority
test, the Director-General saying;
leaders
orders were

The Firs! Year After World War I
The

profit.

Industrial

having departed from this
idea he was now confirmed in the
view "that the Board was hope¬

Board

Day for the removal of all
Government
restraints,
controls
stice

ment

the

of

this

most

sort

was

doubtless

important

element
leading to its abandonment.
The action

without
but

of Director-General

committed to an unsound
and dangerous policy."
The con¬
troversy between Director-Gen¬
eral Hines and Mr. Glass on the
one side and
Chairman Peek, of

td endeavor to bring about a

tion

of

that

enterprises might General's

new

be undertaken with

illegality

safety and the

regarding

opinion

of

any

(the Democrats

control

in

gress), but the

in

the

were

old

Con¬

managers on

both

proval of the prices and the man¬
ner
in
which
they have been

sides were unable to
accomplish
anything,
due - to
protracted

established."

speeches by Senators La Follette
and

France

Government Financial Operations

minds, between the
produfcers
and
those
Govern¬ the Industrial Board, and Secre¬
mental agencies which had large tary Redfield on the other, finallv
purchases to make, upon bed rock took a very acrimonious turn. In
prices which would carry convic¬ the last analysis the Attorneymeeting

still

prices,

with emphatic disap¬

.

that end

to

only

not

the

approval of
.

.

taken

is

action

"This

in

lessly

and1;,interferences.
The original
plari'which in its general features
had had his approval, he asserted,
was

of

hope

(Continued from page 1123)
consistently striven since Armi¬

indicated

The financial

Government

Sherman, who held

from

floor

the

10

March 3

a.m.,

operations of the
not of the huge

were

magnitude of those of the previ¬
year, and yet were of large
The long delayed War

ous

extent.

the

Bill, fixing new rates of
excess
profits and

Revenue

price arrange¬

and

income

profits taxes, after having
agreed to
in
conference,
finally passed
both
Houses of
war

been

Markets

In

Michigan Securities

Congress
in
February—in
the
House, Feb. 8, and in the Senate,
Feb. 13—but was not signed by

UNDERWRITERS and DISTRIBUTORS

until

Wilson

President

Feb.

after his return from his first

and Brokers

Dealers

Carter

in

Hines

Glass

his signature to the bill while on
the train en route from Boston to

in

asking for competitive
200,000 tons of steel rails,
as noted
above, failed of its ob¬
ject and did not bring lower

Washington.
Mr. Wilson, how¬
was not successful in pre¬
vailing upon Congress to expedite
other needful legislation which
during his absence in Europe had
been progressing quite tardily. As

bids for

Listed and Unlisted Issues

prices than those fixed

WHITE, NOBLE & COMPANY
MEMBERS

DETROIT

STOCK

21.

Six

'

GRAND RAPIDS
Trust

Michigan
Phone

94336

Teletype G R

-

DETROIT

2

Buhl

Building

26

Building

Cherry 7350

184

leading steel

uniform

EXCHANGE

prices
*

The President affixed

to France.

-V'

•

concerns

as

bid
to

a

of

manu¬

absolute

accord

Board.

concern

A

the

can

immediate

need

the

Joseph

until

the action of

a

failing
saying:

The result

of the old Con¬

the

MEMBER

DETROIT

STOCK

of

there¬

of

these

men

dealing
Congress

particulars,

in the Senate

Government, to imperil the

financial

interests

of

the

rail¬

way systems of the country and
to make arbitrary use of pow¬

carry-

intended to be employed in

ers

Cray, McFawn & Company

adjournment

have deliberately chosen to em¬
barrass
the
administration of

leaders had expressed a desire

Deficiency Bill

of

President

statement

a

in

A group

March 4 with¬

I. France

dereliction

in

the

to have the

rails,

The

the

with

few

Senate in block¬

on

hour

4.

issued

upon

greatly

was

the

March

passage even of most of
the appropriation bills.
Republi¬

In view of
of

expired

gress

March.
In these circumstances
Mr. Hines did not hesitate as to
the

over

that the life

was

proposed prices $10
those
named
in

to pursue.

fact, he

ing desired legislation.

seventh

out

course

of

provoked

of

excess

matter

members in the

prices approved by the

Industrial
in

in

ever,

March

respects

conditions

and

the

steel

all

and

facture

with

in

on

24

trip

the interest of the people.

m
SECURITY

EXCHANGE

It is

TRADERS

plainly

duty

my present

to attend the Peace Conference

MICHIGAN
Municipal and Corporation
WELCOMES

Bonds

YOU
DETROIT
1225

20,

Ford

MICHIGAN

Telephone

Building

Cherry

0828

Teletype—DE-540

DeYoung, Larson U Tornga
1001-03 G. R. NATIONAL BANK BUILDING
GRAND RAPIDS

2, MICHIGAN

Telephone 98261

Teletype GR 84

AN ADDRESS OF DISTINCTION

L.

MacNaughton-Greenawalt & Co.
MEMBERS DETROIT STOCK

at Paris.

in

be

EXCHANGE

Sherman

Y.

•

duty to
with the

It is also my

contact

close

public business during a

session

Congress.
I must make
choice between these two

of the
my

duties, and I confidently hope
the people of the country
will think that I am making the
that

WEST MICHIGAN SECURITIES

right

conduct of
public affairs that I should call
the Congress in special session
while it is impossible for me to
be in

GRAND

of a

Washington because

pressing duty elsewhere,
co-operate with the Houses.

more

RAPIDS 2, MICH.

to

Teletype GR 466

the

It is not in

choice.

interest of the right

Complete Trading Facilities

T

Telephone 93121

granted that the

take it for

who

men

obstructed ana

have

prevented the passage of neces¬
sary

this

willing to assume the respon¬
sibility of the impaired ef¬
ficiency of the Government ana
the embarrassed finances of the

INVESTMENT SECURITIES COMPANY
Members

National

Association

of

Securities

Dealers

Jackson, Michigan

PHONE

enforced absence.

20405

life
political
complexion of the legislative body
changed, the Republicans holding
With

DETROIT

of
•

Financial Tenants in the Buhl
Building
Baker,

Simonds & Co.

Blyth & Co.. Inc.
Campbell. McCarty &

M. A.

Co., Inc.

Ferriss, Warner & Miller
; a a

f

Michigan
Corporation :.y

the

old

expiration of the

Congress the

control in both Houses in

It

was

that the action of

Manley & Co.

Mercler, McDowell & Dolphyn
Merrill Lynch,

the

Congress.

INSURANCE STOCKS AND

in

MICHIGAN INDUSTRIALS

Pierce,

the

enced

old

in

Congress
small

no

the new

freely charged
the Republicans
was

influ¬
by

degree

knowledge of that fact—they fee1-

Wm. C. Roney & Co.

Carlton M. Higbie Corporation




FIRE

Fenner & Beane

First of

II. Hentr & Co.

Specializing in

L. T. Hood & Co.

of my

country during the time

1005 National Bank Bldg.

BUILDING

legislation have taken au
consideration and are

into

ing that in the

White, Noble & Company

Stanley H. Wilkinson

R.

H.

GOODRICH

J.

J.

MORSE

R.

A.

Congress

new

| greater freedom
.

,

(Continued

on

on

that

page

they

act with

.would be in position to

WOCHHOLZ

account.
1125)

I

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d.

I.* .'*•

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,2>3" V

Number 4418

162

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE

that

The Tint Year Alter World War I
It

the Republicans were

reason

the

Liberty Bond Acts

Sous

so

as

maturtiy should be not

Bonds the law provided additional

less than

Liberty Loans. The Secretary sub¬ pointed out that the
(Continued from page 1124)
mitted the draft of a bill to amend
was also charged that for the.
bonds unissued under

came

the

1125

amount

of

one year nor more than
five years from the date of issue.
The Act included certain alterna¬
tive proposals with

exemptions from taxation.
On

the

Bond

Con¬
of having-the new Con¬ achieve the ends desired.
convened in extraordinary gress, however, was not prepared
session; at en
early date, the to go quite so far in the leaving of
sooner to exercise their power of discretionary
powers
with
the under the
second, third and fourth stabilizing the market for the 4%
political control. The President Secretary as he had desired. The Acts $20,000,000,000 and approxi¬ and the 4^4%
Liberty
Loan
on his part made no secret of his
Secretary had asked for authority mately
$17,000,000,000 of bonds
intention not to call the new to issue in his discretion either having been issued under the four
Congress into being until it be¬ bonds or notes, as market condi¬ Acts.
In the bill, however, the
gress

12

the

,

.

Secretary is¬

sued a public statement
definitely
fixing April 21 as the date for the
opening of the Victory Liberty
Loan
campaign
and
Saturday,
May 10, as the date for the close.
In this statement he pointed out
that under the Liberty Lean Acts
(Continued on page 1126).,;

respect to ex¬
Liberty
emption from taxation, and the
Act was slightly in
ex¬
Secretary
was given discretion to
cess of
$5,000,000,000—the author¬
ization under the first Bond Act choose from among four classes of
For the purpose of
having been $2,000,000,000 and exemptions.

to

March

11

^

absolutely impossible to tions at the time might warrant, limit of the new notes was
put at
the Government without but the Committee, bearing in $7,000,000,000
instead
of
the
such a step. Notwithstanding; the mind that a new loan must in all $10,000,000,000
suggested by the
old Congress had left so much probability bear a higher fate of Secretary.
In the form proposed
needful? legislation
unfinished, interest than the rate in the by the Committee the
Victory
statements emanating from the Liberty Loan issues, and that such Loan Bill
passed the House on
came

■

SPECIALISTS:

l

carry on

White House at Washington kept

higher

persisting to say that the Presi¬

fect the financial

dent would not convene Congress

19 definitely decided in favor of
short-term notes, and were there¬
upon
advised by the Assistant-

session until the

in extraordinary

after his second return
from France—he having set sail
for Europe again on the morning
summer,

of March 5 after a strenuous ten

days in this country crowded with

will

be

the

statement

we

above

he took

ex¬

that it

was

in

that

noted

It

events.

important
have

quoted

press

occasion to

say

interest of the right
public affairs that I
[he] should call Congress in spe¬
cial session while it is impossible
"in the

not

of

conduct

for

to be in

me

of

cause

Washington, be¬
pressing

more

a

duty

elsewhere, to co-operate with the

rate

Secretary

might

of

adversely af¬
markets, on Feb.

the

Treasury

abandoned

cision, Mr. Glass
loan in the

apparently
Treasury

the

also

the

of

tions

as

representa¬

Secretary

of

a

body

without

a

March 2 after the col¬

Republican

filibuster

ried

out

In

from

and

letter

Glass

The

notes.

increased

to

$10,000,-

ANN
204

State

SECURITIES

ARBOR

DETROIT

Savings Bank Bldg.

National

2366

Phone 3777

Phone

Bank

CA

Bldg.

309S

new

put out to $7,000,000,000 and pro¬
viding that the notes must be is¬
sued at not less than par granted
authority to the Secretary to pre¬

suggested
that
authority be conferred upon the
Secretary to issue $10,000,000,000
or

was

INVESTMENT

statute while limiting
the amount of notes that might be

had

additional bonds

time

$8,000,000,000

Dean W.Titus & Company

000,000,

be

his

aggregate of certificates

from time to

that
a
campaign
inaugurated on April
21, or possibly earlier, and would
be popular in nature.
would

the

indebtedness
granted
under
previous acts that might be issued

campaign for
spring would be car¬

Committee,

and

dissenting
favorably re¬

of

announced that the
a

Mr.

urgent

Bill

Feb. 20 again

on

Real Estate Securities

3

was

that

on

lapse of

modified materially
by reason of the Committee's de¬

had to

very

in

passed
roll call

or

Chairman

were

but

be acceptable to marked
by
more
than twenty
Secretary Glass.
Because of a hours' debate.
The Bill became a
misapprehension that the Victory law with the President's signature
Liberty Loan plans had
been on March 3.
By Section 3 of the

to

istration

with

The Bill

this plan would

Kitchin of the House

The needs of the Railroad Admin¬

26

ported to the Senate Feb. 28 and

that

Houses."

However, the President
yield in his determination.

Feb.
votes.

MICHIGAN

scribe

the

terms

and

conditions

of the loan and to fix the rate

He had

rates of interest.

It

Miller, Kenower & Company

was

the

or

provided

Municipal and Corporate Securities

to the embarrassment

to result from the failure of Con¬

gress
to pass
the
annual
ap¬
propriation bills likewise carried

MICHIGAN and GENERAL MARKET

Penobscot Building

much weight with the President.
On May 7 a call for an extra ses¬

DETROIT 26, MICH.

sion of Congress, to convene Mon¬

MUNICIPAL BONDS

day, May 19, came by cablegram
from the President and

public by proclamation at Wash¬
ington.
As already noted, Government
borrowing during 1919 was not
the

enormous

Telephone Randolph 3262

Bell Teletype

made

was

REAL

ESTATE

DE-476

SECURITIES

on

scale which marked

the fiscal

operations, of the calen¬
dar year 1918.
Only one large
public loan was floated, the old
Congress having made full pro¬

McDONALD-MOORE & CO.
MEMBERS

vision for this before it went out
of existence.-

The rest of the Gov¬

ernment

financing was carried on
of Treasury certificates
of indebtedness—largely
certifi¬
cates put out in anticipation of tax
collections, but also considerable
amounts in the shape of loan cer¬
tificates.
Preliminary steps bear¬
ing upon the new borrowing to be
by

1566 Penobscot

Detroit 26,

DETROIT

Bldg.

STOCK

EXCHANGE

810 Michigan Nat'l Bk. Bldg.

-

Mich.

Grand Rapids 2, Mich.

means

done

were

taken

at the very

be¬

ginning of the year. On Feb. 10,
Carter Glass, the Secretary of the

Treasury, addressed a. letter to
Claude Kitchin, Chairman of the
House Ways and Means Commit¬
tee, in which he asked the atten¬
tion

of

the

committee

S.

R.

LIVINGSTONE

&

CO.

BUILDING

PENOBSCOT

the

to

necessity of the immediate enact¬

DETROIT

26,

MICH.

ment of

legislation amending the
Liberty Bond Acts so as to make
possible the funding by a Victory
Liberty Loan in the spring of the

floating debt already incurred
which

would

that time.

be

incurred

up

PENOBSCOT
Telephone—Cadillac

or

Distinguished

to

issued

successfully

now

Penobscot

that

and

hostilities had ceased- within the
.limitations imposed by existing
laws.

Although, it

templated

to

until

spring;

the

float

was

the

he

not

con¬

new

loan

deemed it
actiom in

proper to urge: prompt
view
^

of the early expiration, of

the life

of

enact

make the

M. A. MANLEY & CO
MEMBERS DETROIT

bond

legislation

capitol.

professional
center

of

men

to

It is-

in the permanent

Detroit's

business

financial district.
★

Specializing in

.

o*

before^ the Victory

Liberty Loan

campaign should: begin..

As con¬
siderable time was still to elapse
before the actual
offering of the
new.
loan, he felt obliged to ask
greater .latitude in the exercise of
a

or

sound discretion

the

proposed

Loan. than, had

Congress:

in

as

to the: terms

Victory Liberty

been-.conferred.iby

respect * to previous




Bank and Insurance Stocks
Fort and Griswold Streets

BUHL BUILDING, DETROIT

Telephone—Randolph 1890

26

Teletype—DE 92

near

business and'

STOCK EXCHANGE.

the

further

Building Detroit's legal

financial

everything needful

existing Congress
(on March 4) and .the
apparent
impossibility of convening and or¬
ganizing the new Congress in time
to

occupants

He contended that this

Victory Liberty Loan icouldmot
be

BUILDING

Teletype—DE 336

4333

DETROIT

and

I.

rOl

THE COMMERCIAL & FINANCIAL

1126

CHRONICLE

Thursday, September 6,
1945

to the issue of loan certificates of

The First Year After World War I

for

indebtedness

the

immediate

He said that three months

future.
had

b^ done, I anticipate that the I to the amount of
requirements of the Government, ! Subscribers were
must

(Continued from page 1125)
authority

had

still

he

issue

to

bonds simil&r to those of the sec¬

in

fourthv Liberty
Loans in amount of $5,022,518,000,
but
any
issue of bonds under
authority of those acts would have

and other

ond, i third f. and

be at 41/4%

to

be readily financed by the
issue of Treasury certificates from

rather

notes

short-term

J

than

of

longer term bonds "which would

| have to bear the limited rate of
•

414%."

interest

of

pressed

the

also

He

belief that

a

ex¬

short-

term issue would maintain a

price

par

would

Federal
would

longer term issue.
Even at this time he was obliged
than

a

income

be

The

tax.

notes

convertible, at the op¬

accrued interest.

The temporary financing of the
the
holder, throughout
life, into 3%% three-four- Government through the issue of
convertible
notes
of
the Treasury certificates of indebted¬
"conclusion as to the rate of in¬ year
States
exempt from all ness, which was a feature of Gov¬
terest and exemptions from tax¬ United
ation which these notes will bear Federal, State and local taxes ex¬ ernment financing throughout* the
because
this
decision
must
be cept estate and inheritance taxes. war, was continued during 1919,
notes were" in turn but on a greatly reduced scale;
based on conditions existing im¬ These 3%%
These certificates of indebtedness
mediately prior to the opening of made convertible into 4%% notes.
served to provide the Government
the campaign."
The details of the Both series were to be dated and
with funds in advance of
receipts
proposed Victory ldb.er.ty Loan bear interest from May 20, 1919,
and mature on May 20, 1923.
were announced by the Secretary
All from the sale of bonds or notes,
or in
anticipation of revenue from
on April 13.
The Secretary fixed or any of the notes might be re¬
before maturity, at the income and profits taxes, and also
the amount at $4,500,000,000. This deemed
state

to

that

smaller

was

he

had

reached

had

than

been

pected, which created a favorable
impression, reports having been
current that the amount might
be in the neighborhood of $6,000,000,000.
Furthermore, the Secre¬
tary
officially
proclaimed that
"this will be the
last Liberty
Loan," to which he added the
following explanation: "Although,
the

as

remaining

presented,

war

bills

option

ex¬

June

of

15

or

the

United States
Dec. 15, 1922, at
As

and accrued interest.

j case

was

on

par

the

with the four huge

issues of
this Victory Lib¬

bond

and

for

riods

to

distribute

and

note

taxes

of

over

time,

extended

at

tageous

as

by the issue

of

that

in

not

each

semi¬

certificates

any

calendar

.

case

of

the

on

the average exceed half of that

year

should

not

and

such

progress

demobilization

in

greatly to re¬
duce the requirements of the cur¬
rent

the

That would mean
during the remaining

program.

issue,

months of the calendar year
to the amount of.

five
of

as

certificates

not

ber,

of

gross

^

bank-and

trust

each

percentage it was
might fall "as low as 0 8%
the

As

year.

end

of

the

calendar

showing

how much
draft upon the
resources
of the banks * this was
than the
similar drafts which had
to be
made in the previous
year, it is
proper to point out that in the
last
half of
1918
Secretary
less of

..

a

McAdoo

obliged to advise the banks
that what they would be
expected

was

»9i/^ke^
would equal
2V2% of the gross

roughly

resources of
bank and trust
company for
every period of two weeks, or a
total of 5%

each

monthly."

On

period mature

the

the aggre¬

for

towards

went

tax certificates in

pursuance

--and the

stated

$3,500,000,000.
As against
this, there would during the same

and

Tt

semi-monthlv
during August and Septem¬

issue

say,

and be paid loan

"

j"

in

company

of

advaa?

they would be ex¬
to take from time to
time
less than 1.6% of
the

first and fifteenth of each

of the

fi

are

terms

program

resources bL each

issue

.interval?

Government

tificates of five months'- maturity.
These were to be issued on the

amount

modem?,

in

conditions

to.- the

stitutions
this

pected

cer¬

Tate of

to fund

and.. upon

-

Aug.
a

25th

banking

view

the

Secretary

step further and notified

oversubscription
In

accordance

of

with

$749,908,300.

the

terms

of

the issue the oversubscription was

are

gate

of

institutions

the

of

success

that
the

in

first

banking insti¬
gations of the country revealing
very favorable state of Treasury

of

amount

nouncement

a

made
the
previous
April that the Victory Loan could

finances and indicating the policy
of the Government with reference

series

be

regarded
of

as

the

last

of

the

Liberty Loans and that

the banks and trust
companies to
subscribe for any specified quota.

This third

any compulsory fea¬
ture; fully met expectations and

bo nd s
STATE

partment

enabled to advance

Public
BONDS

was

On

step.

varied

was

the

sale

the

time

Treasury

of

loan

De¬

Sept. 8th the
by suspending
certificates

for

being and offering two
series
of
tax
certificates, both
dated-Sept. 15, 1919, one series

AND

MUNICIPAL

success.

the

plan

GOVERNMENT

unqualified

an

Accordingly,
another

STATES

offering, free from the

suggestion of
proved

UNITED

fund

market

vorable

been determined to issue loan

provided; for

pe¬

to

when

Treasury Loan certificates should
be resumed.
It had > accordingly

made in army settlements and

avoiding

ltSland a.!so

of

amount, for then all the Victory

subscriptions

thereby

issue

Loan certificates would be paid or

payments

A__W15

i«co

nr

„

$2,997,540,500, two issues of Treasury certificates,
tremendous transfers of funds on
Liberty Loans
leaving a net increase of $502,459,- in pursuance of the program out¬
consequent
erty Loan proved a great popular any one date with
500.
The Secretary also, said that lined
above
the
third
semi¬
success,
the aggregate subscrip¬ money stringency. -On July 25
the figures he was .now able to monthly
issue dated Sept. 2nd
tions reaching $5,249,908,300—an Secretary Glass addressing a com¬
would
be
present
fully
justified
the
an¬
offered
without
munication to the
asking

borrowing rejected and subscriptions allotted

further

operated
on

.the

exceed,
say, $500,000,000, and-after Sep¬
tember and during the remainder

of

tion

4Vo%

.

convenient

should

their

no

_a>

notes

when

4

«
r6-

quirements "by the sale of
1W
i.
AJ"aS
certificates -of- indebted*
bearing interest at the rati" *

nrv

amounts

come

hi*

«

short-term

ex¬

a

i

rapid decrease in the current

monthly

%

be

temporary
iy

sirable

mum

.

would

ury

been

month,
beginning Aug. 1, 1919. The mini¬

permissible to complete payment
on any installment date with the

Treasury

finirpmpntc

made possible,he stated*, - by the

now

campaign such as has char¬ ments in full could be made with
application or1 on May 20 (except
Loan."
The Secretary also now stated as to subscriptions subject to al¬
that the Loan would take the form lotment, in which case payment
of 4%% three-four-year convert¬ might be completed on June 3)
ible
gold notes of the United provided the 10% required with
States
exempt from State and application had been duly paid on
local taxes, except estate and in¬ or before May 10.
"It was also

~

had

interval

penditures of the Government, the
very large early payments on the
Victory Loan and the ready sale
of tax certificates.
The time has

ular

taxes, and from normal

This

taxes;

acterized the Liberty

heritance

after the campaign
had been closed far more readily
about

at

passed since, the last offering
of Treasury certificates other than
/those 4 issued ,nr anticipation of

time, as heretofore, which
may be ultimately refunded by
the issue of notes or bonds with¬ on Nov. 11 with accrued interest
out the aid of another great pop¬ orr* deferred installments;
Pay*
time to

studying financial
Conditions, however, he had desi termined, he stated, that the in¬
terests of the United States would

decreasing scale of expendi¬

the

interest as a max¬

be best served by the issuance of

income, can, in view of

ture,

After

imum.

of the amount of taxes

excess

$4,500,000,000.
permitted
to
make payments on an installment
plan
stretching
over
the
six
months' period from May 10, 1919,
to Nov. 11* 1919, as follows: 10%
with" application on or before May
10; 10% July 15; 20% Aug. 12;
20% Sept. 9; 20% Oct. 7, and 20%

the

finance its further

maturing in six months and bear¬
ing interest at the rate of 4%%
and * the other maturing in one

Utility

Industrial

interest at the

year and:bearing
rate of

4^%.

Railroad

time in:

Municipal

nounced

This was the first

over a year- that certifi¬
cates had been offered at less than

43/f>%.

In

it

addition,

that

an¬

was

certificate

all

ma¬

turities- prior to 1920 would be
provided for from tax receipts or
out of cash in bank.
Subscrip¬

tions/ to these two offerings of tax

THE NORTHERN

FRANKLIN

7070»BELL

$101,131,500 represented the 4lk%
six-month series and

CHICAGO

the

NEW

TELETYPE-CG.

368

YORK

BOSTON

MILWAUKEE

MINNEAPOLIS

4 l/z%

OMAHA

23rd

the

that

one-year

announcement came

two

issues

of

September
stated

Brokers and Dealers in

be

•

Over the Counter Securities

HICKEY
Since 1924

in

had

Secretary
while
it
could

not

defnitely when semi¬
monthly issues of loan certificates
wouldi be
resumed, such issues

«'if:

v."'

certificates

tax

the

that

of

of Treasury cer¬
When offering the

resumption

tificate issues.

P

$657,469,000

series.
The
success of these offerings made it
possible to suspend fbr another
period the offering of further loan
certificates.
It was not until Nov.

Chicago 90

•

SYSTEM

proved very heavy,
aggregating $758,600,500, of which

Incorporated

TRUST COMPANY
50 South La Salle Street

certificates

ACALLYNandCOMPANY

said

would

certainly

before

Oct.

that

&

CO.

general

not

15th.

though

resumed

be

He now

factors

most

since

situation

stated
the

in

that time

bad been adverse, the position of
the Treasury had developed more

135 SOUTH LA SALLE STREET

favorably than then there seemed

CHICAGO 3

*■/

.

any

reason, to hope,
made it possible to

"

•

Telephone—Randolph 8800

Rogers
120

&

t

Teletypes—CG1234-123$

€s

^certificates,/

XitAcv

new

Direct Wire to New York

So. La Salle

Street, Chicago 3, Illinois
Telephone State 4151

resumption.; of

I

V^i,

wires to

EASTMAN, DILLON & CO.
Members New York




r

Stock Exchange

our

Correspondents
BAKER, SIMONDS & CO.

Members Detroit Stock Exchange

i

further

issues

—

He announced

issue

of

Treasury

Of
-

both

certifi¬

cates of indebtedness for Govern¬
ment loan purposes

and an offer*
Treasury certificates in an¬
ticipation of taxes.
Both issues

-ing of

were

Direct

and this had
avoid earlier

al._A.l-__

dated Dec. 1,

1919, the loan
due Feb. 1$
tax
certificates

certificates

falling

1920,

the

March

4j/4%

| to

and

15,

1920.

interest.

both

The

bearing

subscriptions

the tax certificates closed Dec.
(Continued

on

page

1127)

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4418

Volume 162

The First Year After World War I
Committee

Money, after con¬
(Continued from page 1126) ^
arid reached
$250,942,500,j sultation ^with'; and the approval of
had
while the subscriptions for/the the; Treasury -4 Department,.
come to the conclusion that con¬
loan certificates closed Dec. 1 and
trol
by/the-Stock/
Exchange- Com¬
aggregated ^ $162,178',500. Oh/Deri.;
Stir the Secretary offered another mittee might for the present be
suspended;
At
the
same time, it
issue of Treasuryv certificates in
was thought best that the Stock
anticipation of taxes.. They were
dated Dec. 15 and payable June Exchange authorities be requested
on

the

financial

11271

Bond Traders Club Of

world

which

Chicago, Inc.

i

*

had

been led to believe

2nd

that, under the
riperatiori of the Federal Reserve
System, extreme rates for money
such

had often prevailed on the

as

Stock

Exchange before the estab¬

lishment

of
that
system would
again be possible. The no¬
tion, of course, was preposterous.

•

never

but with interest at •to continue'to receive from mem-, But from the start the idea had
bers of the Exchange
daily reports been sedulously cultivated—and
In this last. instance the
of their borrowings until after
by no one more persistently than
subscription books were closed
the next; Liberty Loan had been the Federal Reserve
authorities
[Dec. 19 and aggregate subscrip¬
placed,
but
that
"the
definite
themselves—that the possibilities
ar¬
tions reached no less; than $728,rangements
made
with
of
credit expansion and loan ac¬
a.: large
130,000,
of which ' $257,455,500
1920,

15

%.

4. y2

.

.

certificates paid for

represented

group of New York banks to fur¬
nish funds for Stock

commodation

under

the

Reserve

Exchange system were limitless. While the
certificates of earlier
issues.
On Dec. 29th the Secre-;. loans, if and as required, should campaign for the Victory Liberty
now be terminated."
Loan was being carried on, con¬
tary offered still another issue of
With this action, the so-called siderable restraint on the
I Treasury certificates in anticipapart of
i tion
of taxes and this time ad- "Money Pool" created in October, borrowing was enforced and the
i vanced the rate of interest to 1917, ceased to function. The re¬ situation was kept well in hand,
3 4%%. The new certificates were sult was seen the very next month but thereafter it got out of con¬
in Treasury

1920, and became
In making his
Secretary said
of this issue should

2,

Jan.

dated

15, 1920.
offering the

due Dec.
new

the

success

consummation

the

assure

the

of

Treasury's plan for financing the

with

when

Exchange
rates
ure

the

revival

speculation

advanced

of 6%

to

of

Stock

call

trol.

above the fig¬

which

The

thorities

loan

Federal

now

Reserve

began

to

au¬

make

Paul Yarrow

William C. Kegley

Laurence H. Norton

Charles T. Matz

President: Paul Yarrow, Clement, Curtis &
Co.; Vice-President: Wil¬
liam C. Kegley, Rogers &
Tracy, Inc.; Secretary: Laurence H. Norton,
Remer, Mitchell & Reitzel; Treasurer: Charles T. Matz, Harriman

Ripley & Co.

strenuous efforts to check further

had

previously credit expansion.
The spurt in
arbitrarily been fixed as the fig¬ call loan rates on June 3 to 11% naturally caused great commotion
ure
beyond which the call loan had been the first occasion since among speculators who imagined

check

the

at

moment

because

of

Government

financing.
After
unfunded portion of the war debt rate would not be allowed to go. the advent of the Federal Reserve that immediate steps would be pointing out that by far the larger
in such a way as to avoid the ne¬ On Monday, Feb. 24, the call loan system
(barring
a
temporary taken to extend borrowing facili¬ part of the invested assets of the
cessity for great refunding opera¬ rate shot up to 7%. This, however, spurt in December, 1916) that the ties and bring about a renewal of Federal Reserve Banks consisted
But the Federal Reserve of paper secured by Government
tions by spreading maturities and proved merely a temporary flurry rate on Stock Exchange loans had ease.
Board
was
not
blind
to
the obligations, the Board indicated
meeting them so far as may be out and the rate quickly dropped back
dangers of the situation. On June anxiety to get some information
| of tax receipts./ Subscriptions in to 6% and did not again go above
10 news came from
this case continued until Jan. 16th that figure the remainder of the
Washington on which it could form an esti¬
It was not until June that
saying the Federal Reserve Board mate as to the extent of member
and it was announced after the month.

i close of the

'

Jwas

already indicated,

year

of currency and credit

one

inflation,
and it

the

and

was

of

also

of

price inflation,
of growing
On

a

year

tension in the money market.
Jan.

24th,

at a meeting of the
Sub-Committee on Money of the

Liberty

Loan Committee in this
dty it was decided to announce

the removal of all the money re¬
strictions in New York.
A state¬
ment

issued in which it

was

York

ing

loans
eral

had

Stock

on

was

stabilize

to

rates

in

in

than

Harding,
on

of

the

the

concern

part
Board

serve

Governor

of

the

Federal
the

not to permit the use of their fay
cilities in aid of Stock
Exchange

Re¬

speculation.

existing sition

tendency towards excessive spec¬
ulation."

Federal

W.

P. G.

Harding

Board

at

the

was

These high rates on the Stock
Exchange came as a revelation to

been
above

allowed

6%

and

to

was

Federal

not

stated that while

Reserve

Banks

it

the

ment to continue its

been

*

Public

re¬

Utility

operations in

—

Industrial

—

Railroad

Burton-Dixie Corp., Com.

the

Stock

account-to

Specialists Guaranteed Railroad Stocks

Municipal Bonds

*Oak Mfg.

Parker Appliance Co. Com.

*Gibson Refrigerator Co., Com.

Snap-On Tools Corp. Com.
* Wells-Gardner & Co., Com.

Jessop Steel Co. 5%-1954

Woodward Governor Co. Com.

Established

H. M. BYLLESBY AND COMPANY

communi¬

135 South LaSalle Street,

is

speculative

movement

t

Chicago 3

10 South La

New York

*

Philadelphia

*

Pittsburgh

*

Indianapolis

Minneapolis

which

—

Trading

Dept.

Teletype

Rockford

CG-405
■

H0LLEY, DAYTON 8 GERN0N
CHICAGO STOCK

EXCHANGE

Doyle, O'Connor & Go.

BROKERS—DISTRIBUTORS

INCORPORATED

DEALERS
135 So. La Salle Street

105

SO.

LA SALLE

Chicago 3, Illinois

STREET, CHICAGO 3
CENTRAL 0780

.

,

IN WISCONSIN
EAU CLAIRE

FOND DU LAC

-

-

LACROSSE

-

MADISON

-

WAUSAU

>

•v

•-

-

»

.1.

*

■

'

-•

c-

v •*

.*
-

iinmm

3

large amounts of
money," and accordingly the Sub-

CG 262

-

Salle Street

CHICAGO

lyould absorb

MEMBER

■

noth¬

now

ing to indicate the probability of
a

Exchanges

Chicago Board of Trade

Teletype CG 273

Telephone State 8711

1916

Members Principal Stock

Incorporated

cation

changed that "there

request

Paal H.Davis &Oo.

its

to the Money Committee
had stated that conditions had so

on

Trading Markets Maintained in Over-the-Counter Securities

Exchange,

written

Co., Com.

Globe Steel Tubes Co., Com.

*Prospectus

Active

expansion in the aggregate.
Now,
however, the officials of the Stock
a

following

bonds

Northern 111. Corp. Pfd.

BONDS and STOCKS

then

prevent

and

Central Steel & Wire Co. Pfd.

continue exercising control of

Exchange in

specu¬

Central Steel & Wire Co. Com.

existing until after the next Gov¬
ernment Loan and, with the au¬

loan

Exchange

were obliged to
pay for ac4
(Continued on page 1128)
|

Acting in accord¬

to continue the
arrangement

the

that

appear

circumstance

thus

of

Stock

UNDERWRITERS and DISTRIBUTORS

with the wish of the Treas¬

thorities

dispo¬

lators

practicable to apply this

unlisted stocks

expressed,
the SubCommittee On Money had ar¬
ranged with the New York banks

to

a

part of the

Ex-/

the

We maintain markets in the

aid of the Government's financial

ury

was

the

on

change and to have it
what

quested by the Treasury Depart¬

ance

There

first

on

arrangement

had

and

requirements.

at

Reserve authorities to make light
of the high rates on the Stock

appreciably

go

the

It

purposes

tioning the Federal Reserve Banks

G.

P.

expressed

was

"over

W.

for

Bonds on account, or other than
for purely commercial purposes.'/
New warnings came in July cau*

purely

ordinarily this could be corrected
by an advance in discount rates

of

expire (it would

of

force

other

borrowings

Government

close of the year.

signature

Treasury /Department wished

then

for

on

Government

on

"made

Exchange collat¬

about to

extension

an

to the extent of

borrowings

other than for carrying customers
who
have
purchased
Liberty

September new
in'October, and continued through
November, in which latter month
the quotation for call loans at one
time got as high as 30%.
A like
high figure was not again touched
in r December,but
the
money
market remained tight until the

have expired Jan. 10, 1919), the
Committee had inquired whether
the

as

by member banks
collateral

August and
tension developed

ease

Reserve

furnish¬

been

tion

bank

collateral

commercial purposes.
In this let¬
ter which was sent out over the

year

banks

funds

relative

Exertions

(1918), when
the arrangement whereby the New
previous

as

was

pointed out that on Dec. 30th of
the

addressed
a
letter
to
the
Chairman of each of the Federal
Reserve Banks seeking informa¬

high as 15%; in July a
still higher figure was reached,
namely 18%. Thep after a period
got

Growing Tension In Money
As

had

real money stringency developed.
In
that
month
call
loan
rates

that $703,026,000

year

| had been subscribed for.

•

■,

*

:r

?.

1

y

"•>

.•••

•••*




/

mr* -

*

j-j. vtvi

9

f

THE COMMERCIAL & FINANCIAL CHRONICLE

1128

To have

The First Year After World War I
commodation

was a

In July high rates for
call loans on the Stock Exchange

modation.

(Continued from page 1127)
matter of lit¬

In the
funds were of daily occurence.
might remain available for ordi¬ early part of July rates on call as
nary
mercantile 1 borrowers
at high as 8%, 10%, 12%, 15%, and
Indeed,
moderate rates.
But it was soon even 17% were reported.
tle

consequense

that

seen

long

so

as

such distinction was

no

the

after

of

close

business

the Monday, July 7, 20%

in

stringency

possible—that

was

on

said to

for "all indus¬
Some slight re¬
of the
stringency oc¬
to extend to other branches of the laxation
curred later in the month, but the
market.
1
The rest of the year the activi¬ situation remained more or less
ties of the Federal Reserve Board acute, and on July 31 the call
loan rate mounted to 18% on both
were employed largely in efforts
"all industrial" col¬
to guard against the use of the mixed and
period of some
facilities of
either the member lateral after a
branch

loan

call

market

banks

money

or

later

Reserve

Federal

the

or

the

of

sooner

sure

was

Banks in the

lative
tive

promotion of specu¬
enterprises or for specula¬
ends.
Repeated
warnings

have been charged

trial"

money.

days, With ruling quotations 6 at
7%.
At the end of July current

gossip had it that the aggregate of
Exchange loans stood: at

Stock

$1,750,000,000 against $1,500,000,authorities, intended as reminders 000 at the beginning of the month,
on that point.
The difficulty of $1,000,000,000 at the opening of
dealing with the situation was in June and only $600,000,000 at the
some
measure
increased by the beginning of March.
These fig¬
removal of the embargo on gold ures may have been exaggerated
to
some
extent,
but
they
doubt¬
exports towards the end of the
half-year, as more specifically set less reflected correctly the pre¬
came

Federal

the

from

reserve

In a statement is¬
The Reserve authorities were con¬ sued on July 9, the Federal Re¬
fronted on the one hand by the serve Board observed that flurries
out further along

that

circumstance
on

the

banks

while

credit
were

on

-

in thi$ article. vailing trend.

demands

new

for

collateral

stock

call

were

money

on

"inevitable

long as the present methods of

so

the

re¬

gold

ex¬

financing and settling speculative
transactions
in stocks are per¬

the other hand
on

rates

arising,

constantly

moval of restrictions

the

of

facilities

the

in

in,"
regrettable as
this
almost imme¬ sisted
diately followed by a considerable might be. It went on to add:
As things are now they can
outflow of the metal—meant in¬
be guarded against only by such
evitably cutting down of cash re¬
methods as were adopted dur¬
serves
and a fall in the ratio of

ports—which

cash

reserves

was

to liabilities.

of

movement

large

A bull

extent

and

carrying

great energy was under way on
the
Stock
Exchange
and
this

necessarily

pressing de¬
the banks for accom¬

meant

mands upon

ing
the
war,
reasonable supply

stocks

providing

a

of credit for
but, contrari¬

wise, taking effective measures
to prevent undue speculation or
expansion of the loan account,

it

but

would

for

in

way

every

unfortunate to

itself

the

not

of the

function

of the Federal Re¬
Banks or the banking in¬

serve

nor

stitutions of the country to pro¬
vide

cheap money for stock
speculation, and the Board feels
the

that

reflex
call

for

rar)s

collateral

ment's
the

action

money

the

upon

financial

of

the

stock

on

Govern¬
and

program

requirements of

commerce

The

During August the
was

distinctly

evident

when
money

newed pressure

and

effect

call

money

relatively small
the rates for com¬

upon

mercial

high

the

borrowings),

continue

and will
decrease as it be¬

to

better and better under¬

comes

the

observers

autumnal

came

September

market
but it was

money

easier,

careful

to

ofTreasury

withstanding

that

demand

for

there would be

re¬

and at the close ol

for

rates

call

loans

upward, touching
9% on Sept. 26, 15% on Sept. 29
and 12% on Sept. 30, while in Oc¬
tober call loan rates were high
again

spurted

throughout

month

the

the

and

stood that the true functions of

tension continued throughout No¬

the

vember and

banking institutions of the

country and of the Federal Re¬

system, acting in their aid,
the temporary re¬
quirements of the Government,

serve

is subject to
to

finance

dustry.

commerce

Only

those

and

in¬

banking

was only partially re¬
during December.
It be¬
came
apparent at the beginning
of October that the policy of the

lieved

Federal

Reserve

Banks

with

re¬

spect to discount rates would
some

in

particulars have

important

institutions which adhere to this

to be modified.

policy

of the action of the Reserve

Even in advance

performing their true
function and are being wisely
and conservatively handled in

the member banks began to alter
their own practice with respect to

the real interest of their stock¬

loans

holders and the public.
The de¬
mand for credit for stock spec¬

Information the latter part of Oc¬

ulation

October of the previous year had

are

must

yield precedence
to these prior demands, and the
rates for stock speculation rul¬
ing from time to time, however
erratic, can have no permanent
effect upon the rates for Gov¬
ernment

and

commercial

and

industrial purposes.

the

period

felt

;free'

ing

market

agreed

to-

institute

a

rate

prevail!

the
for

funds.

For th»
of the
previous Mav
the- banks had in
many instmno
agreed to lend money to

Victory Loan

not

were

industry has greatly de¬
(as, indeed, was evi¬
denced by the small redemptions

rates

of

^

and

not¬

194s

views here ex¬
subserih*
ers for
six
months at 4%%
realized.
As
'rate carried by the
already indicated, it soon became
Victory
These
apparent that rates for money on themselves.;
agreement
call could not be treated with in¬ generally expired the next
month
and here, too, it was
difference
or
be
ignored—that
certain the
rate charged would
be advanced
they would be inevitably followed
The Federal Reserve
by
growing
tension
in
other
Board gave
plain intimation of
branches of the money market. a very
hopeful

pressed

creased

certificates

develop¬

important

an

in

is

ment.

arbitrary measures.
It is

transactions

commercial

perpetuate in peace times such

Treasury

neces¬

no

connection between rates
speculative purposes and for

sary

be

6

definitely established

the fact that there is

and

undesirable

Thursday, September

Government

on

tober

that

was

agreed
scribers

to

Loan

4% %

now

at

which

money

the

telling

these loans

collateral.

banks

lend

to

their
were

a

in

sub¬
Liberty

to

Fourth

for

Banks,

year

clients

were

that

renewed

if

at the

expiration of the year's time 5%
would be charged.
Bankers ex-

the

forthcoming change in
policy in the "Bulletin"
tober.
in

This

official

its

own

for

Or

publication"

discussing the discount policv

of the Federal Reserve
Banks took
occasion to observe that
"the dk
appearance of the U. S.
Treasury
from the long-term
loan

market

and the rapid reduction
in its

re

quirements for short-term
accom¬
modation
foreshadows
the
ap¬
proach of the time when the
fi
nancial operations of the
Govern¬
ment will cease to be
the
tant

factor

Bank

in

policies

been

and

rates

solely

which

Federal

once

Reserve Bank
be fixed

will

more

with

impor¬
Reserve
they have

shaping

view

a

of

acommo-

dating

commerce and business "
Action in accord with the
views
here laid down came soon
there¬
after.
In November some
call
loans were negotiated at 30%

per

annum, the highest quotation
corded since the panic of 1907

reflecting
which

degree of stringency

a

it

had

been

establishment

of the

banking

serve

re¬

and

supposed the
Federal Re¬

system

had

ren¬

dered forever out of the
question.
On November 3 the Federal Re¬

Bank of New York made an
in its discount rate and

serve

advance

this

was
subsequently followed'
by all the other Federal Reserve

Banks

throughout

the

country.^

The step was taken to curb credit
inflation and prevent the further
use of the facilities of the Federal

SILLS, MINTON & COMPANY
INCORPORATED

Reserve Banks in promoting spec¬

Underwriters and Distributors

ulation

the

on

schedule

209 SO. LA SALLE STREET, CHICAGO 4

of

November
Members

We Maintain

Chicago Stock Exchange

PUBLIC

UTILITY

INDUSTRIAL

Exchanges

Bank

of

The

TRACTION

RAILROAD

H. K. Porter Company Common and Preferred

effective

rates

new

3,

issuing the

Benjamin

Strong,

Governor of the Federal Reserve
New

statement

Active Interest in:

an

Stock

and in commodities. In

York, gave out a
November 2, saying:

on

for

reason

the

advance

in rates announced today by the
Federal Reserve Bank of New
York is the evidence that some

Liberty Loan Corporation Common and Preferred
Serrick

of

part

STOCKS

Corporation Class A and Class B

the

great

of

volume

credit, resulting from both Gov¬
private borrowing,
which war finance required, as

BONDS

ernment and

it is released from time to time
from Government

needs, is be¬
ing diverted to speculative em¬
ployment rather than to reduc¬
tion of bank loans. As the total
volume
of
the
Government's

Analyses Available

Telephone

Teletype

Dearborn 1421

CG 864

COMPLETE

TRADING

SPECIALISTS

IN

Leason & Co., Inc.
39 SO. LA SALLE ST.

CHICAGO 3

FACILITIES

LOCAL

MARKETS

loans

is

duction
TELETYPE

CG 982

TELEPHONE STATE 6001

in

course

corresponding

tions in bank loans and

of

re¬

reduc¬
deposits

should be made in order to in¬
sure

orderly return of nor¬

an

mal credit conditions.

The

CARTER H. CORBREY & CO.
WHOLESALE

pf

the,

discount

Reserve

in

Banks and the soaring of money
rates Ho new high figures caused

DISTRIBUTORS

collapse in values on the Stock
Exchange^' and on November 11
a

FOR

the credit situation

UNDERWRITERS
MIDDLEWEST

the

Federal

advances

rates,

Real Estate Securities

at

York

PACIFIC COAST

and
and

ernor

Federal

SECONDARY MARKET DISTRIBUTION

Industrial & Public Utility

was

discussed

special meeting held at the
Federal Reserve Bank of New
a

sponse

attended

Reserve

to

by the

Vice-Governor

a

Board.

letter

from

Gov¬

of

the

In

re¬

Senator

Owen under date of November
COMPLETE TRADING FACILITIES

Stocks & Bonds

14,

Governor Harding of the Reserve

Board, contended that "the high
for call money which have

rates

135 South La'Salle
State

6502

We Specialize In The Acquisition & Distribution of

Street, Chicago 3, 111.

__

Meritorious Securities.

MARKETS

ON

Street, Los Angeles 14, Cal.

ALL

WESTERN

two

tently
were

BRANCH OFFICE
650 South Spring

prevailed
past

Teletype CG 99

SECURITIES

Caswell

&

Co.

A. E.

NICHOLS, Manager




National Ass'n of Securities Dealers

Teletype CG 1122

months

several

themselves

very

past,
clear

lation had thrown the stock mar¬

and

he

pointed

out

that

"during the week ending Novem¬
ber 8 the Federal Reserve Board

CHICAGO 3

Telephone Trinity 3908
Member

for
in

indication of the strained position
into which the unbridled specu¬

ket,"
120 South LaSalle Street

continuously for
the
weeks, and intermit¬

had sold to other Federal Reserve

Phone Central 5690

Banks
for

$90,000,000 of acceptances

account

of

(Continued

the
on

Federal

page

1129)

Re-

162.. Number 4418.

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE

The First Year After World War I

1129

liabilities."

This constitutes

of

of

tell-tale

the

sort

a

uneasiness, it having been the first
time

borrowings at

the Reserve Bank.

On

February

,entials in favor of
21 the amount of this item was
(Continued from page 1128)
paper secured 830,(}00, against $4,059,262,000.
At
serve Bank of New York, but in by other Government obligations the end of 1919
it will be observed given as $808,180,000. For Dec. 27,
spite of this action the reserves of having been abolished by the ac¬ the loan item exceeded the de¬ 1919, it was $1,004,338,000.
At
the New York Bank had fallen tion taken earlier in the month
posits by $887,654,000, which com¬ times during the year the amount
to

40%." "In these circumstances,"
he added, "in order to prevent

(December 11) and already
ferred to. tOn the Stock

further expansion it became nec¬

call

re¬

Exchange

loans

December

on

29

com¬

with

pares

1918 of

no

an excess

at the end of

than

more

$600,199,000.
so largely

The fact that the loans

vember

8

at

$1,064,705,000.

such

situation

a

since the

had

establishment of

the Federal Reserve System. Later
the fluctuations in the reserves of

the New York institutions ceased
to

yet larger, being highest No¬

was

that

arisen

attract much notice, it having
over and over

been demonstrated

The

again that the

increase in the bill holdings of the
New York Federal Reserve Bank

the

reserve position of
Clearing House banks varied

to call the attention of the manded as high as 25%, and this exceeded the
in almost direct ratio with the
deposits—the excess
rediscounting banks to the figure was repeated on December running larger
by $287,455,000— similarly indicate the growth in borrowings at the Federal Reserve
situation." He also laid stress on 30 and December 31, the renewal affords
the extent to which resort was Bank.
One week the borrowings
essary

large

perhaps

that "during the summer
Board had made the specific
announcement that it would not
sanction any policy which would

these three days being
respectively 10%, 15% and 15%—
the year thus
closing in a way
plainly suggestive of the mone¬

require the Federal Reserve Banks
withhold credits demanded by
commerce and
industry for the

was

the fact

the

to

rates

on

tension

tary

Condition

processes of production and dis¬
tribution in order to enable mem¬

21)

and

Later
19, 20
conference

the Governors of the
12 Federal Reserve Banks and the

between

members of the Federal Reserve
took place.

Board

been

there had

Prior to this,
conference be¬

a

Board and the Advisory
Council. Nothing transpired with
reference to the results of these
tween the

After the break on the
Stock Exchange in November and
the resulting liquidation of specu¬
lative holdings it was claimed that
meetings.

the

aggregate of Wall Street bro¬

kers'

had

loans

been

$1,350,000,000 as
000,000 in July.

reduced

to

against

$1,750,However, two

further advances in discount rates
were

made

by the Federal Reserve

Banks in December.
vance

of

11 and the

December 30.

this

latter

of 4%%

rate

The first ad¬

December

came

second

It

(November

three-day

a

The

to

was

effect

establish

for advances

on

a

all

classes of paper and for all ma¬
turities except for agricultural pa¬

of from 61 to 90 days ma¬
turity, the rate for which was left

the

year

of

remains

to

had to the facilities of the Reserve

would be

Bank.

26, 1919, the total
of bills in the portfolio of the New

serves
or

ing House institutions.

York

next week

tion

ures
ence

as

any

as

of

The

fig¬

of deposits here has no refer¬
to the ordinary deposits and

does not include Government de¬

Clearing House

be

posits against which
serves

are

no

required

cash

and

re¬

which

add that much to the

Institutions

speculative purposes."
November

in

which

Banks and Federal Reserve

ber banks to furnish cheap money
for

for

noteworthy.

good an indica¬
the augmented

credit demands and the loaned
up
condition of the New York Clear¬

said

that

the

loaning ca¬
pacity of the institutions.
But
though Government deposits were

weekly returns of both the New somewhat
larger this will account
York Clearing House institutions
for only a small part of the
great
and those of the Federal Reserve
expansion in the loan item; the
Bank

of

New

York

well

as

total of the Government
deposits
having been reported $225,030,000
Dec. 27, 1919, against
$177,559,000
Dec. 28, 1918.
In the autumn be¬
ing the last half of the year of fore the
plans inaugurated by the
the strained credit situation and
banks for curtailing loans—in re¬
of the inflation in note issues with
sponse to urgings from the Fed¬
the impairment of reserve
posi¬ eral Reserve authorities—became
tion to which this was
giving rise. fully effective, the aggregate of
On Dec. 27, 1919, the New York
the loans stood at even larger
fig¬
Clearing House banks and trust ures, being reported no less than
companies,
according
to
the $5,433,003,000 October 11, which
weekly
returns
for
that
day, was the maximum for the year. Of
showed an aggregate of
loans, dis¬ course,
the banks greatly
ex¬
counts and investments of
$5,197,- tended their borrowings at the
484,000, as against $4,659,461,000 New York Federal Reserve Bank.
Dec. 28, 1918, showing an increase
Beginning with the return for
as

For Dec.

$979,506,000,
000 Dec.

to

Reserve

Bank

was

as against $721,698,27, 1918. The holdings of
bills secured by Government war
obligations decreased from $610,-

sition would

770.000

favorable

bills

to

$584,588,000,

discounted

the

but

secured

by

mer¬

$41,and the
holdings of, bills purchased in the
open market ran up from $69,323,605,000

000

to

$203,606,000,

$191,313^000.

to

quirements, on Dec. 27, 1919, was
$8,232,540,
against
$42,804,340,
Dec. 28, 1918.
The surplus varied
widely from week to week, on oc¬
casions during the year, particu¬
larly in the autumn, and it hap¬
pened

twice

actual

the

counting
in

vault

far

there

was

(only

Federal

Reserve

a

the

Reserve

Federal

now

be

poor

being concurrent with
Federal Reserve return or

vice versa, an unfavorable Clear¬

ing House statement being coin¬
cident

with

Federal

favorable

a

Reserve report.

Bank

summer

Reserve

.the

Quite early in the
New York Federal

Bank

found

its,

reserves

down close to the legal minimum
and for the rest of the year it was
constant struggle to prevent im¬
pairment of its reserve position.

system
are
con¬
The dates of these def¬

icits were September 20 and De¬
Feb.
21,
1919, the New York
cember 20, the amount of the def¬
weekly
Clearing House return
crease for the 52 weeks was
only commenced reporting an entirely icit at the earlier date having
$250,568,000, the grand aggregate new item. We have reference to been $53,186,14Q, and on the later
of demand and time
On the first of
deposits, Dec. the item designated "bills payable, date $12,320,830.
27, 1919 being reported $4,309,- rediscounts, acceptances and other these occasions the matter caused

the

of

statement

a

for the 52 weeks of
roughly $538,-

In

a

itself, with the result that

"legal" reserves, cash
never being included
as

cerned).

on

this shuttle¬
performance continued for
long periods of time, a good bank

Reserve

eral

take

latter half of the year

member banks of the Fed¬

as

more

cock

an

as

once

or

the Reserve Bank would

held

reserves

with

obliged to take extra precautions
to restrict borrowing so as to im¬
prove its own position. Yet in the

deficit below the legal re¬

quirements
with

that

in¬
po¬

position

Clearing

House institutions, above legal re¬

central
reserve

reserves

Bank

The surplus

of the New York

reserve

the

stitution and the cash

seemingly favorable
aspect. This new borrowing, how¬
ever,
would impair the reserve

cantile paper increased from

those

000,000.

be

entirely, wiped out.
The
new borrowing would
again be indulged in, thus adding

Federal

in

for all the Reserve Banks
the country, gave constant in¬
dications from week to week dur¬

sharply reduced and re¬
a low figure

would fall to

The New York Reserve Bank had

deposits the in¬

$824,944,000

of

Federal

Reserve

notes in actual circulation Decem¬
ber

26

1919,

against $736,553,000

December 27 1918.

(Continued

on

page

1130)

per

at 5%.
In

r
statement

bearing on the
discount policy of the Bank issued
on

a

December 30, Benjamin

Strong,

The

Governor of the Bank, pointed out
that in view of the fact that the
U. S. Government had completed
its

permanent

financing and

the
Government in¬

further fact that
come

had

in

merchandising of

relation

to

SECURITIES

expenditures

reached

a
point where tem¬
borrowing would be on a
greatly reduced scale, and in view

porary

of the further fact that the

certificates

standing

out¬

widely

dis¬

now

our

business

U. S.

indebtedness

were

tributed
not

of

is

UNDERWRITING

DISTRIBUTING

TRADING

(it bm'np" estimated

over

one-half

of

the certifi-

CflUTTEHDtn & CO.
W.J.r, Yjeun IJorh

Slocl Exchange and (Chicago dddloch ddxchattge

209 South La Salle Street
634 South

Spring Street

TEL

Bear, Stearns

&

LINCOLN 8, NEB.

TEL DEARBORN 0500

TRINITY 6345

direct

tixsi Notional Bank Bldg,

Chicago 4, Illinois

LOS ANGELES 14. CAL.

private

wires

to

TEL. 2-3349

and

east

west

coasts

MIDDLE WESTERN

Co.

SECURITIES

Benjamin Strong
cates

outstanding were now held
by the
banks), the directors of the

New York Federal
Reserve Bank
had
rates

"eliminated
heretofore

the

maintained
in
lavor of
advances and rediscounts

on ^onds, certificates of in¬

i

debtedness
+

and

acceptances

and

u7-e t*me

least have

a

single rate for credit

established

Listed and Unlisted

Members
m

preferential

New York Stock

Exchange

Chicago Stock Exchange

New York Curb

Exchange

Chicago Board of Trade

New York Cotton

Exchange

4*

Commodity Exchange/ Inc.

i

National Association of Securities Dealers, Inc.'

HICKS 6- PRICE

Investment Bankers Association of America

Federal

Reserve Bank,
hereby greatly simplifying their
,

luture rate
policy."

It

was

members
new

also

announced

in
Washington dis¬
patches December 30 that
the Fed¬
eral
Reserve Board had tele¬

graphed
all Federal
mat it

Reserve Banks

would approve the sched-

ie

P

rates

doing,

erential

r a

away
with the
te s
theretofore

given to
paper secured
cates of

by certifi¬

indebtedness—the

differ-




york

chicago
new

CHICAGO 3, ILL
135 SO. LA SALLE STREET

NEW YORK 5, N.

york

curb

chicago

Y.

stock
stock

chicago

1

exchange
exchange

exchange

board

of

mercantile

(associate)

trade

exchange

ONE WALL STREET

Telephone State 0933

Telephone Dlgby 4-8500

Teletype CG 1279

Teletype NY 1-633

*

231

SOUTH

LA SALLE STREET

•

CHICAGO 4

i
A

Teletype CG 972
I Wall

Telephones Randolph 5686 and State 1700

Street, New York 5, N. Y.

Telephone BOwling Green 9-1432

t

I

1130

Thursday, September 6,1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

fixed
figure for so
Complete demoralization
developed the latter part of the
month as a result of these steps.
The rates for cable transfers on
London had been held at 4.76 7/16,
while the rate for sight bills on
London had been maintained in
the immediate vicinity of 4.75%.
On March 20 there was a drop in
the former case to 4.71 and in the
case of sight bills to 4.70.
By the
end of the month cable transfers
were down to 4.59 and sight bills
to 4.58.
The lowest point pre¬
viously reached by sterling dur¬
ing the war had been in Septem¬
ber
1915, when 4.50 had been
quoted for demand bills just prior
to
the
placing, of the Angloarbitrary

>1

The First Year After World War I

it
\
&

eral Reserve notes in actual circu¬
(Continued from page 1129)
For the Federal Reserve system lation stood at $3,057,646,000 Dec.
as a s whole—that is, for the 12 26
1919, against $2,685,244,000 De¬

fluences. This action meant a com¬

Federal Reserve Banks combined

cember 27 1918.

tries

—the

52

the

of

things was much
The last six months of

course

Reserve bank notes in circulation.
Gold

parallel.
All the
were heavily in¬
debted to the United States, and
their needs in the way of food and
other supplies and for materials
necessary in the
process of re¬

curred from

the

was

in the endeavor.

success

hope

liabilities

of the Federal

were

26

by the banks would be gradually
liquidated and they urged par¬

serves

were

released

1919,
to

Reserve

the credits thus

as

measures

circulation

be

to

first

at

directed

'

'$
I-M-

VF
'

;'C

■£

must

under

come

whether

the

ban

The

reserve

the

In

foreign

as

Entente Powers

construction in rectification of the

havoc

they said
demands upon the

and

credit facilities of the Federal Re¬

the

did

figures.
with the

Banks

serve

kept

the

of
history.
one

constantly in¬
Borrowing
on
war

creasing.

diminished

paper

maintained at artificial

Hostilities having ceased
signing of the armistice

in November
confronted

1919.

somewhat,

though

It

1918,

situation
Powers in
recognized that un¬

the

was

a new

great

der peace conditions artificial aids

very much less than had
been counted upon or hoped for.
On the other hand, other kinds of

will

year

declines.

dealings with the United States,
drop in rates went much fur¬
likely
or
even
possible—and as it hap¬
pened, still lower depths were to

the

on

a

exchange rates
which

the

neutral

were

coun¬

because

these

neutral

coun-

tires with the cessation of hostili¬
lost

ties

in

not

few

a

instances

certain

advantages
which
they
enjoyed during the war. In
of Germany and Austria
it is almost needless to say the
bottom dropped almost complete¬
ly out.

doned—support

case

'

'M:

-fe

§!

Tfe

liquidation of

war paper.

To meet

the

effort

must

the calls for further accommoda¬

later

tion large additional amounts of
Federal Reserve notes had to be

quite early in the

issued.
Reference
been made to the

riod

prove

futile.

already
expansion in

had

absolute

been

a pe¬

with

the

case

and

France,

were

removed

York.

market

aggregate of Fed-

long

left

so

in

Great

the

artificial

year,

Britain

both

For the 12 Reserve Banks

or

maintained

success

Federal Reserve note issues by the
Federal Reserve Bank of New
combined

sooner

Accordingly,

restraints, which for

has

vr."
•

ing

and

of

the -exchange

to

itself, free to re¬
spond to the play of natural in-

In

January and February quo¬
tations for sterling bills and for
French

tions

ments.

change

Pi,"-

UNDERWRITERS AND DISTRIBUTORS

with

transac¬

routine

March there

require¬

discussed^ above.

Things

31

and

in
13

the

Support was also/ withdrawn
March from J: Italian ex¬
change. Until March 21 the quo¬
during

tation for cable transfers on Rome

by the Federal Reserve Bank had
lire

6.35

been

the

to

the

dollar.

On

mentioned/, there was a
drop to 7.05 and on/March 22 to
7.70, while on Marcfi 27 the quo¬
day

tation

down tu 8.00 though
by March 31 there was a recovery
to

got

7.45

@7.40 to theff dollar. The
for the collapge here was

on

March
of

21

Fred

Division

the

I.

Kent,

of

For¬

by dealers as described under the
executive order of the President
of Jan. 26 1918, are hereby'"'le-

sation of purchases of sterling ex¬
course,

"peg" which

sterling exchange at

moved until otherwise instructed/'

The

an

of the

course

exchange lhar-

reached

•■if

June weakness

We

Brailsford & Co.
MEMBERS
WALTER
ROY

R.

CHICAGO

—

STOCK

BRAILSFORD

HUBERT

S.

EDWARD

M.

EXCHANGE

Telephones State

IVERSON

are

exchange

Fred

than

208

SOUTH

BURKE

LA

CHICAGO

ready for

with post war

9868

SALLE

post war

issues.

|
[

★

ized

and

•

Street, Chicago 3, 111.

Public Utilities

early part of the month, in which
low levels were established

new

in

the

&

208 SO.

the




Private

lat¬
This re¬
extended into October, but

part of the month*

ter

covery

weakness

pronounced
became

once more

character¬

dominant

the

of this

istic the latter part

month.
be
by

Brief spurts of strength would
almost immediately followed

In

renewed weakness.

November

and

Berlin

on

Rome, not to speak
Vienna, while in

and

demoralization

utter

complete that the
part of <tne

so

was

the

early
into

fell
on

a

state

closely

London

panic. Demand

on

31

the

rate

was

down

11.84

francsf to make tne

.

231

Real Estate

*

Teletype—CG 451

Wire To New York

the

striking recovery ensued the

wfs.^

with the quotation
10.92 @10.87 francs to the dollar.

So. La Salle Street

CHICAGO

dollar;*

being 5.18 francs to the
the
close
December
31

4

some

recovery,

The

Italian

lire

in

the

closing

also suffered
another drop with the effect
breaking all the preceding 1?*
records—followed then by an ir-

Specialists In

of the year

regular period of; recovery.

OVER-THE-COUNTER

TELEPHONE

BELL

STATE

CG 361

0101

TELETYPE
—

CG 362

fore

on

no

checks

on

quotations were

(Continued on page
a**"*.**-*

1

December
got down to 13.60 lire to the do lar, with the quotation Decemo
31 13.27. As for rates on Germany
and
on
Austria, trading in ex¬
change on those countries was n
resumed
until July, and

rate

SECURITIES

CHICAGO 4, ILL.
Bell

on

equivalent of a dollar (the yalu®
of the French franc when at par

COIHPA(i¥

LA SALLE ST.

Telephone Randolph 4696

exchange

belligerent countries of
continent of Europe, quite a

quired

SECURITIES

INCORPORATED

of

case

former

months

1IPP1M

Sep¬

exchange after a further
manifestation of weakness in the

The French franc
during December continued to de¬
cline until on December 10 it re¬

Scrip

-

were

In

again to $3.75.

INTERNALS

Industrials

-

records

around.

tember

December

Teletype CG 1040

ADAMS & CO.
DOMESTIC

all

bills
Decemberw12 got
down to 3.65%
(this comparing
with
4.86%,
the value of the
pound sterling when at par), ana
though by December 17 there was
a recovery to
$3.91%, this recov¬
ery was not maintained, and oy

FOREIGN SECURITIES

-

low

new

established

lapse

★

Telephone Central 4274

.

■

the Italian lire also
broke to still; lower figures.
In
August the foreign exchange mar¬
ket at times was utterly demoral¬

bordering

105 South La Salle

Over'The'Counter Markets In-

Stocks

,

and

daily

month
★

4, ILLINOIS

INCORPORATED

-

already

as

developed under further startling
declines in rates. Indeed, the col¬

BENNETT, SPANIER 8 CO.

Bonds

when,

support. In French exchange, new
declines
were
reported
almost

market

tvl

EXTERNALS

1915

in

December

STREET

k
jt:l

1

Kent

I

on

%
'>
ji

I.

stated, demand bills got down to
4.50 just before the British Government stepped in and extended

of

Bell-Teletype-CG 95

CONOVER

was

and Italian
exchange showed no
improvement. In July rates for
sterling bills dropped lower even

Paris

Mir*

r.K

sensational

proportions
again the
predominating feature in sterling
exchange while French
In

pound sterling dropped below
$4.00 and new low records were
also established for exchange on

ill

■|v,

again devel"
oped in sterling exchange,
while
the
decline
in
francs and
lire

the

UNLISTED TRADING DEPARTMENT

J-jT '

lt$£

(iqr, the dollar.

eign Exchange of the; Federal Re¬
serve Board, gave out a statement
J.
P.
Morgan & Co. that the British saying: "All restrictions as* to the
Government had ordered the ces¬ sale or purchase of lire exchange

had held

recovery, but neither
franc, nor the

French

lire shared in this to
any substan
tial
extent.
In- May
very pro
nounced
weakness

and

week,

next

from

the

the

French'.; exchange

saw

Thursday, March 20, by

of

substantial

there

dollar.

Director

removal

of

proved lasting
April sterling bills enjoyed a

this the

previous low point for French
during the war had been
1916 when the quotation April
had been 6.07% francs to the

that

on

recov
none

checks

French

announcement

time,

which,, however,
In

The

routine when

following the customary
on Tuesday, March
exchange. This was fol¬

with

to

succeeded by a

to 6.07 francs

reason

the

1

the

came

change, which meant, of

OF CORPORATION SECURITIES

.$;■

to

lire

again

drop
down

had been

the

I.!'.':'

In

Italian

and

pegged

limited

lowed

$■-

francs

continued

time

accelerating pace.
recovered only to

an

then

rate

March

drop

was

at

decline

lower

but

week

The

during

March^ 15,

small

a

next

of

basis, not merely in sym¬
with the general slump,

interspersed

eries from

relatively little change.

was

Saturday,

came

quotations also moved to

war

pathy

the

borrowing kept steadily expand¬ out of the question—and even if
ing and ran far in excess of the attempt should be made to con¬
reduction of bill holdings through tinue the practice for the time be¬

On

ther than anyone supposed

had

was

there

the

case

never

n

dP

permitted,
the support
having
been
apparently general rather
than specific.
On March 3 the
quotation for checks on Pairs was
5.49 @5.45% francs to the dollar.
Until the middle of the month

But though it was gen¬

In the

of the

had

clines

attempt to maintain ab¬
solutely fixed
rates, larger or
smaller
deviations having been

inevitable
always
be

be reached in 1920.

case

there

ket for the rest of the
year was
renewed
further

record. of

been any

memorable for the extent of these

of this, kind would have to aban¬

indefinitely

were

In the

franc

French

in

declines

drastic

rates

the

loan.

French

a

In these cir¬

come.

cumstances

exchange
and

avail, \ but

all

United States for

of the

long time to

the

despite

were

war

heavily against them and in

run

favor

tries

been

the

by

such that the trade balance must

commodities, in real the most momentous in
estate; or in anything else. It can¬ In the years while the war was
not be said that the promptings actively
in
progress,
exchange
and urgings of the Federal Re¬ rates on Great Britain and France
serve 1 authorities
were
without and in minor degree also on Italy
had

created

Entente countries labored in their

exchanges,

will always stand

year

without

was

erally realized how heavy were
the handicaps under which the

State of the Foreign

in

i

:\V.<

35%

Exchanges

—

U;

W

re¬

against the deposit liabilities.

w

.'.Iph

statute

mainly

against Stock Exchange specula¬
soon became apparent
that speculation of any kind also

P

De¬

against note

reserves

and

tion, but it

IP

The

1918.

quires 40%

combined

against 50.6%

as

their

seemed

liabilities

note

27

should be taken to

guard against
for speculative

natur¬

reserves

reduced. On December
the ratio of cash re¬
net deposit and Federal

44.8%,

was

cember

increased

considerably

the ratios of cash

that holdings ally

being used
purposes.
The warning

l

fell off

reserves

of war obligations carried in loans

employed

ft

levels.

Board and the officials of the Fed¬

ticularly that

■

oc¬

to much lower
There was nothing to do
Europe

the year were a period of constant
strain] with the Federal Reserve

Reserve authorities

i

'

also

of

except to let these new and lower
levels
be found.
The situation

It

ft
ft

i'.V

increase

an

readjustment of exchange
values on all the belligerent coun¬
plete

$117,122,000 to $261,039,000 in the volume of Federal

same.

different

■

weeks

During the same

somewhat,
eral Reserve Banks making Stren¬ being $2,078,432,000 December 26
uous j efforts
to
prevent
an 1919, against $2,090,274,000 De¬
increase in the demands upon the cember 27 1918; and as the de¬
facilities of the Federal Reserve posit liabilities of the Federal
Banks and meeting with only in¬
Reserve
System, like the note

I:

long

c

*

-

V*

-

rifcrWr-iaJfrf,

avaiiao

1131)

^

Number 4418

162

Volume

-

THE COMMERCIAL & FINANCIAL CHRONICLE
^

-

The First Year After World War I
(Continued from page 1130)

-

prior to tnat time. Transactions in

began around
noon
on
Wednesday, July 16.
Opening quotations were at 8
cents for checks and 8V4 cents for
exchange on. Berlin

which

cable transfers^

was

transactions in foreign
exchange.
Some of the Reserve Board's com¬
ment in

its

announcement

of the

America

Bond Traders Club of Kansas City

and

the Far East

principally — reached far larger
proportions than expected; and, as
for

gold
that

our

strong

reserves

could

we

considerable

spare

being so
readily
out

amounts

prac¬

of

tically the basis previously estab¬

it, the credit situation became

so

strained the latter part of

dealings in

lished^ for

marks

on

mented

cents, these looked like very low

2.03

Vienna,

change" on;

In

cents.

being

checks

3.25

transfers

ex¬

and

cents

and

quotation

and 0.60 @
-

the

In

other

0.58 @ 0.60

was

0.62, respectively.
of exchange on the

case

centres, it will
give simply the
quotations at the beginning and
the end of the year to indicate
European

sufficient

be

the

that

the

trend

in

of

extent

Swiss

franc

ciation

all

cases

was

suffered

than

The

decline.

the

less

depre¬

other European

any

currency, but even in that case
the rate moved lower. In this in¬

stance, however, the value of the
medium was at a premium with
the
opening of the year.
The
Swiss

franc

francs

to

when

the

sight
January

land,

at

dollar.

for

tion

bills

par

is

The

quota¬

5.18

Switzer¬

on

2, was 4.86@4.85
units to the dollar; on December
31 1919, on the other hand, 5.62
@5.52 francs were required in ex¬
change for the dollar.
Guilders
Amsterdam for

sight bills were
quoted at 42 7/16@421/2
Jan 2,
and at only 37% @37%
Dec. 31.
At normal parity the value of the
guilder is 40.20 cents.
The Span¬
ish peseta for checks was quoted
at 20.05 cents January 2 and at
on

19.20

December

value

of

the

normal

The

31.

is

peseta

Spanish

19.30 cents.

Scandinavian kroner
worth 26.80

26%, while
ilarly

was

the

calendar year 1919, the exports of

Foster

A. I. Webster

John Latshaw

Harry L. Coleman

President: Arthur L

Webster, E. W. Price & Co.; Vice-President: Harry
L. Coleman, H. O. Peet & Co.; Secretary-Treasurer: John Latshaw,
Harris, Upharn & Co.
•

on

exports

of

gold is decidedly interesting
in the light of the subsequent de¬
velopments.
It
expressed
the
opinion that our gold reserves
were

strong that

so

considerable
of

even

outward

gold

could be
apprehension.

a

very

movement

faced

without

in amount of $291,651,202,
already stated further above.

metal
as

Course

of

Stock

the

a

Market

stock

market

the

year

will always be memorable for the
wonderful advances in prices re¬
corded

in

the

shares

of

the

in¬

that such shipments tended to re¬
store normal conditions elsewhere

instances, failed to participate in

they would tend to

the upward

buying

to

increase

of

power

wished
our

To the extent

nations

become and
The

customers.

•

the

that

should be

advances

by

the United States to Governments
associated with this

prosecution of the

country in the
war

were rap¬

idly coming to

an

result

command

rest

that

of

would

quite

the

the

be

world

end with
over

decreased

of

the

gold

our

and

the

it

was

possible

that with the re¬
storation of more normal condi¬
tions elsewhere and the continu¬
ance of large favorable trade bal¬
ances

the

a

movement of

United

gold toward

States

a

flight in prices.

because

was

The railroad
few special

of

the

doubt

This
sur¬

rounding their future, inasmuch
as they were still under Govern¬
ment control

(the effect of which

had

saddle

been

growing

to

burden

{hem with

a

us

at

a

disadvantage in inter¬

national trade."

gold this
the

way

occasion

The movement of

which might

for

the

apprehension here expressed did

materialize; the outflow of the
metal, on the other hand — to

that whatever the
immediate
outlook
a
period of
great prosperity must be deemed
to lie

ahead in

which

all under¬

takings will share save only those
absolutely destitute of merit. In
the

fervor

of

the

market

prices.
on

acter

the

ascent

which

it

hands

of

had

received

more

of

one

and

of

more

those

public and without
the aid of which it would haye
foredoomed

been

to failure.

The factor of

paramount impor¬
tance in this tremendous specula¬
tion

was

unquestionably the wag¬

ing to a successful conclusion of
the greatest war in human history

occurred

States

the

Stock

Exchange
in 1879 and 1880, following the
resumption of specie payments on
Jan. 1 1879, and with that other
great upward swing in values
on

campaigns,

and

the

with

the

resources

of the

United

only slightly impaired—
whatever might be the financial
and economic aspect of the Euro¬

countries

pean

which

had

the
in

f
t

the use of
and of capital in the pro¬

if

progress the ban put on
money

of
undertakings
not
deemed essential for the conduct

motion

of the

war

had imposed a check

speculative
endeavors of
kind on the Stock Ex¬
change.
During the preceding
year—in 1918—stock prices had
over
and over again manifested
a rising tendency which undoubt¬
edly would have developed into
(Continued on page 1132)
•

upon

underlying

every

of

movements which at the most

bull
are

witnessed only once or twice in a

435 S^owt/i/

quoted at
31 the

Sim¬

18.82.

cy
/

crown

which

SINCERE

AND

cents

crown
against 28.00
January 2 commanded only

20.25

cents

3

COMPANY
Members

MEMBERS OF

Chicago Stock Exchange

New York Stock Exchange

New York Stock Exchange

Norwegian

and all

Principal Stock and

December 31.

Commodity Exchanges

An important factor in foreign
exchange rates and dealings dur¬
ing the year was the removal of
embargoes on the exportation of

CHICAGO

export ship¬
ments of manufactured gold were
on

removed in effect by regulations

issued by the War Trade Board
effective May 9.
These regula¬
tions provided that all manufac¬
tures of gold, the bullion value of
which did not exceed 65% of the
total value, might be exported

without individual export license
under special
export licenses ap¬
plicable
to
the
exportation of
commodities

not

Conservation
of

List.

on

the

Export

!s

OVER-THE-COUNTER MARKETS
»

"

INVESTMENT TRUST SHARES

Manufactures

gold, the bullion of which

ex¬

*8

STOCKS and RONDS

ceeded 65% of the total value,
it was
stated, would be regarded

for the
purpose of exportation as

gold

bullion, the exports of which

v^ere

still

control

Board.

of

under

the

On June

the

Federal

9, there

exclusive

of

restrictions

SMITH, BURRIS & CO.

Reserve
came

affecting




120 SO. LA SALLE ST.

the

announcement
also
of
the
re¬
moval—this time by the Federal
Beserve Board—of the
embargo
on
exports of gold as also the ter¬
mination

been

associated with this country in
While the conflict was

war.

the char¬

great

is

only 21.25 cents in
In like manner the

Restrictions

the

at

the

Beginning about the mid¬
February, the speculation

of

took

and

strength of the movement lay in
the
wide
and
general
support

characterizing
the
speculation
it
was
comparable
only to the great revival which

high wages, which culminated with the corner
besides steadily impairing the ef¬ in
Northern Pacific shares in May
ficiency of railway labor), and 1901. The
pace was fast and fur¬
Congress having displayed com¬ ious most of the time, with new
plete indifference to enacting the
high records of prices constantly
necessary legislation providing for
being established.
Cliques and
the return of the roads to private
pools were ceaseless in their ef¬
control.
Barring the apathetic forts to bring about advances in
character of the transactions in
particular stocks, and their mani¬
the railroad shares, the specula¬
pulation played, of course, an
tion for higher prices on the Stock
important part in the success of
Exchange can be said to have had the movement. But these are in¬
few, if any, parallels in the sim¬ evitable concomitants of "bull"

dle
prove

anxiety and

the theory

of

might set in.
Such a movement,
the Reserve
Board urged might "well prove to
ilar movements witnessed in the
be
undesirable
tending
as
it
In this we have reference
would to keep our prices above past.
alike to the buoyancy and activity
the level of other markets and so
put

frenzied desire to acquire stocks

on

the

In

dustrial properties.
stocks, except in

any

generation, when the whole com¬
munity seems to be seized with

January 2

was

only

..

gold exceeded the imports of the
withdrawal of the ban

January 2 (for
at 29on December 31

money.

gold.

$301,For the 12 months of the
was

quoted

commanded
our

world

December

Swedish

been

checks)

on

crown

or

On

cents.

the Danish kroner

had

Z.

not

Exchange on the Scandinavian
centres, experienced a tremen¬
dous
slump.
When at par the

quotation

William

to

strongly downward and to show

outside

926,083.

at par

the

months

the

to

value of the .Austrian crown when

31

U.V.

month, and for the
ending with De¬
cember 1919, the net loss of gold
every

seven

for

being 20.26 cents. By the
following December the rate had
dropped almost out of sight, the
quotation December 9 being only
0.51 @0.55
for checks and 0.53
@0.57 for cable transfers; on Dec.

process

international gold movement each

the

cents,

greatly aug¬

double

Beginning with June the
lost heavily on the

concern.

quotations

3.50

the

Re¬

United States

first appeared July 26, the rate for

cable

that

the

the

at

so

depleting the ratio of reserves
(1) by increase of liabilities and
(2) by reduction of gold holdings,
began to be viewed with no little

figures; in December, however,
the mark got down December 9
to 1.87 cents with the close De¬
at

was

of

mark when at par, namely, 23.82

31

borrowing

Banks

serve

pared with the value of the reich-

cember

and

year

occupied territory in Germany by
the American authorities. As com¬

,

South

1131

V

v

231 So. La Salle St.

Erling J. Hansen

CHICAGO 4, ILL.

Edward P. Renier

Dearborn 1501

Daniel F. Comstock
CHICAGO 3

Teletype CG 257
Teletype CG 878

Telephone ANDOVER 1200

I

f
I

%

1132

THE COMMERCIAL & FINANCIAL

r, September

CHRONICLE
series of unfavorable

fluence of a

The First Year Alter World War I
(Continued from page 1131) •
speculative movement of large
proportions had it not been that

business for the immediate

future,
as indicated further above, many
predictions being made of a trade

strength of the market was fully
maintained and quick upward re¬

the New

reaction.

every

...

a

York

financial

authori¬

ties

These doubts,

however,
and with

to be

prices began to gain steady head¬
way, despite numerous unfavor¬

the monetary

able

case

able to

of the
to

finance

Government)

furnish"

had

and

Exchange

declined

for

<•

1918,

the Stock Ex¬

there

middle

the

From

of

in

ing fast and furious, and the rise
in
prices
reaching tremendous
proportions with the speculation
constantly
broadening.
In
the

that, while sub¬
stantial! advances in prices had
was

change; during

of

prices made almost unin¬
terrupted progress, the pace be¬

Thus the situation at the open¬

on

movement

developments of one kind of

rise

been established

forward

February to the end of May the

that purpose.

ing of 1919

the

another.

to

facilities

monetary

this

needs

had refused

Stock

encourage

speculation

the

had

months,
however,
the
encountered serious
movement nourished by popular speculation
setbacks
in
high and advancing
support, while following the sign¬
ing of the armistice, in November money rates. Those ' engineering
the
bull
campaign- had counted
1918, somewhat of a downward
reaction had actually occurred; upon continued low money rates.
But in; January the restrictions During the period of war it had
imposed upon the money market been deemed best by the financial
been

broad and sustained bull

no

ancl

Stock

upon

ings

summer

authorities

Exchange deal¬

removed.

were

The

rates

an¬

not

let

to

6%

above

go

call

per

nouncement that these restrictions

Whenever indications of

wdre to be discontinued

of funds for the

came

on

a

limited

loan

annum.

scarcity
specula¬

With that action control tion that was permitted became
by the Stock Exchange Committee manifest, the local combination
of banks, which was cooperating
over
borrowing
was
definitely
suspended and simultaneously the with the Treasury Department in
arrangement
which the
Money conserving banking facilities in
Jan. 24L

Committee

had

made

with *.

the interest of Government

a

large group of New York banks

would

to

rate mentioned.

furnish

funds

for

change loans also
Thus

the

Stock

Ex¬

for

came to an end.

restraint

upon

a

would

Stock

furnish

supposed

be

continued.

Exchange borrowing, which had

imagined
Reserve

year: and

absent,
to ' be

half,

a

for

was

about

now

at least was no longer
damper upon Stock Ex¬

or

a

change operations, though it

mained
true that at the
of
the

exercise

veillance

a

certain

modation
purposes

degree of

this

with

policy
They also
the Federal

for

Stock

pent-up

were

released and

the

to

energies

maximum

as

to the

course

the

or

banks

at

all

for

change

speculation.

quence

was

ing

make their influence felt.
In
the early months of the
year much

doubt existed

Banks

change had

quickly began

was

the

member

the

that

the

many a

summer

Stock

The

that

multiplying
movements

re¬

were

the
Boston policemen's strike,- where
the policemen lost their jobs, and
Governor Coolidge of Massachu¬
setts received

the

stock

showed

still

was

market

that

its

strongly

mistakable

evidence

peared

September,

in

this

of

the

once

full

more

Federal

Reserve

on

wild

the

controlled

and

apparently

speculation

up¬

the

Stock

Exchange and determined
to prevent the further use of the
resources

of the Federal

it

it

not

was

to whether the market

as

downward

cause

reactions.

Some

all,

however,

Ex¬

conse¬

Stock

Ex¬

collapse in prices com¬
pared with which few parallels
are to be found in Stock
Exchange
annals.
Some recovery from the
low points reached in November
a

occurred

the
the

in
December, but
altogether was that

closed

year

cessions

with

all

around

Exchange history.

the

underlying

from

the

re¬
ex¬

high figures of the twelve
months, after one of the most pro¬

months,

with

substantial

treme

nounced

Through

of

bull campaigns in Stock

A

Stock

survey

Market

of the

in

stock

1919

market

by months shows that in January
and the first half of February the
of prices still continued
strongly downward under the in¬

A. A. Harmet

&

of

manifestly strengthened. One
depressing influences in

the

March

the

was

tion of the

utter

demoraliza¬

foreign exchange

mar¬

La
4,

of

support from

franc and

the

A.

market

strain

did

dence

in

bore

up

under this

much to inspire confi¬
the
speculation.
In

April the upward movement
tinued to

ISSUES

character

of

the

market

unmistakably fixed

as

a

became

type of

JOHN

in

and

12%

on

collaterial,

with reports
had been paid after the
close of business on loans of about
that 20%

$1,000,000.

However,

the

stock

market, and the speculators be¬
hind it, quickly accommodated it¬
self to the new situation and
ap¬
peared
the

be

to

all

shake-down

Each

the
it

there

better

had

downward

for

received.

plunge

—

and

of them during
month—brought a new set of

the

were

many

buying orders, and, notwithstand¬
ing the general market experi¬
enced

a

severe

decline, not

advanced

and

few

a

established

high records.

In July the

condition of

money

again exerted a dampening influ¬

the

During

ence.

of

weeks

tion

first

month

the

the

three

disposi¬

to

ignore the money
proceed in disre¬
gard of the same. Pool operations
continued in many of the minor
was

market

to

and

stocks and notable and

sational

advances

sen¬

even

estab¬

were

lished in such stocks—often when

reactionary

a

displaying
In the

was

tendency.

a general break
in prices occurred second only to
that experienced at the beginning

Monday, July 21,

of June.

This break, however, was

followed the next day by a

quick

and this recovery con¬
on
succeeding days, the

recovery,

tinued

oil,
motor
and
tobacco
moving up several points,
But the loan situation did not im¬
steel,

stocks

eral

and

on

July 29 another gen¬
tumble in prices

all-round

and the market closed
July 31 in a decidedly nervous

occurred,
on

state.

Street

INDUSTRIAL

con¬

gain momentum and the

illinois

HARMET

ESTATE

collateral

dustrial
mixed

prove

135
REAL

of

the "peg" which had so long held
sterling exchange rates at prac¬
tically fixed figures. The way the

Company

Welsh, Davis
ALFRED

the

removal

INC.

Salle

Later

other sim¬

came

end, however, the money situation
dominated
everything else.
On

French

SECURITIES
chicago

fraternity.

in call loan rates, 15%
being reached on June 16 on in¬

withdrawal

Investment Securities
South

ac¬

con¬

the rest of the list

INVESTMENT

208

needed,

ket that developed the latter part
of the month as a result of the

stock

The

stability and
of the rise in prices

permanence
was

the

in

they

the month there

untoward

happenings—the effect
however, was merely to

high

to get the

annum

ilar spurts

new

of which,

per

sternation seized possession of the

stocks

Reserve

result

11%

commodation

carried still further, despite some
further adverse developments and

course

NOT

though

apparent that the turn in the

course
had
been
permanently
changed, and a genuine revival of
Stock Exchange speculation for
higher prices had been begun. In
March the upward movement was

un¬

on

come

substantial

advances reached

givings

authorities

looking with extreme disfavor

said to have

the

gigantic bull campaigns in Stock
Exchange history. At the outset,
there were many doubts and mis¬

with

and

of

turn

a

themselves obliged to pay as

speculative

already been

definite

market, which came with Feb. 14,
to inaugurate one of the most

began to as¬

influence;

on June
spurt in call loan
and some borrowers found
came

which reference has

The

pre¬

When, therefore,

there

3

as

was

high, and there were other
untoward happenings
and inci¬
dents.
In November, the money
its

a

the

as

huge advances

fraternity had
supposed that the Federal Re¬
serve Banking System afforded
a
guaranty; against
high
money

pressing influences, there came
that complete change in the char¬
acter and tone of the market to

proportions,

rule

sert

of

rapid and
speculative

The

rates,

important

pronounced

as

vious

declines as a
variety of de¬

then

developed with further great ad¬
vances in prices.
During all this
time
money
rates continued to

hap¬

pened at the very beginning of the
and prices took a
general

month

rates.

the

in

in

jolt by

again resumed its down¬
In February, after

course.

Friday, Feb. 14. In the upward
swing the latter part of the month

October tremendous activity again

situation

half-day's
the

week

next

on

ap¬

while

the

market may be

tendency
upward. Un¬

rise

the advance in call loan
rates on
Stock Exchange.
This

market

made.

normal

the

the

and

consequence

more

once

of the

end

the

further

approval for his firm and uncom¬
promising stand against the strik¬
ing policemen, he even getting a
telegram of commendation from
President
Wilson.
Accordingly,

and
even

larger di¬
mensions than before. In
June the
market received a severe

session

ward

unqualified popular

unabated

assumed

from

before

coiling upon their authors. As one

tinued

prices

tumble, the declines in some of
the specialties being as
precipitate

The ad¬
vance, however, was not main¬
tained, the most of it being lost

evidences

the

and

opened at an advance of
1 to 2 points over the closing

figures the previous day.

illustration of this, there was

bad turn dur¬

violent breaks in prices.

of

also

labor

were

of

one

greatest
speculative
campaigns in Stock Exchange his
tory., In May the buoyancy con¬

stocks

confidence

the

as

uttered repeated
warnings against
the use of the credit facilities of

J With the removal of the re¬
straints that had repressed
specu¬
lation so long,

inaugurated in September, it was
quickly seen that the strike was
foredoomed to failure and there

caused

upon

banks to hold money rates
down,
but the Reserve Bank authorities

placed."

But in the
which was

tension.

of the steel strike,

counted

loan

members

Exchange daily
reports of their borrowings until
after, the next
Liberty Loan is

restrictions as regards
Stock Exchange loans had been
discontinued. On this news active
that money

these
downward
dips were
quite severe, but quick recovery
always
followed.
Accordingly,

Reserve

the

to supplement the

liquidation in stocks now took
place on the Stock Exchange and

Call

and, what is more, not only
no
attempt made by either

of

came

unfavorable influence exerted by

sadly

be

to

were

is, there was
compliance with the request that
they t "continue to receive from

speculation—that

troubles

continued decline came

a

quota¬
tions went far above the 6% rate

they
disappointed.

sur¬

In both expec¬

sure.

to

Saturday, Jan. 25, as a result of
the announcement made after the
close of business the day before

on

Banks for the promotion of specu¬
lation of any kind, tremendous

tations

Exchange

Exchange

would be of practically

unlimited extent.

continued to

Stock

over

that

re¬

request

Money Committee and the
Treasury Department the Stock

Exchange authorities

6%

Banking System in oper¬
ation, affording to member banks
of the system rediscounting facili¬
ties of huge magnitude, accom¬

a

be

to

the

at

These speculators

rise

previously

existed

funds

needs,

tion

in prices occurred with
removal of monetary pres¬
In the autumn the labor

gradually passed

interrup¬

January about the only

bounds

(in pursuit of their policy of
husbanding their resources so as

away,

developments which are enumer¬
ated at length in our monthly nar¬
ratives on subsequent pages.
In

6, 1945

J.
8c

COLNITIS
PUBLIC

and

Company

SOUTH LA SALLE STREET

CHICAGO 3

In August the market had some
decidedly
bad
turns,
and the
downward tendency of prices not
only continued but proceeded at
a greatly accelerated pace.
In the
last week of the month, however,

there

decided

a

August, it is

change

of

to state,

proper

connection with the

no

UTILITIES

was

for

the better.- This further break m

the

had

condition

market, which as¬
sumed a distinctly easier tone. The
causes of the sensational declines
were

money

found in the unsettled

labor

situation and the radical doctrines
Tsltphona STATE 6893

Teletype CG 1124

Specialists in

Enyart.Van Camp & Co., inc.
100 WEST MONROE STREET

promulgated in connection, there¬
with, though the further great
weakness in foreign exchange al¬
so
was
a
contributing influence.
Apprehensions regarding the la¬
bor

situation

month

FOREIGN SECURITIES

CHICAGO 3
Telephone—ANDover 2424

Teletype—CG 96S

the Director-General

eries

this
in

August.

f!arl marks & no. ma

once

BROKERS AND DEALERS IN
CHICAGO 4
r

-

Affiliated With CARL MARKS &
CO., INC.
50 BROAD STREET, NEW YORK
4, N. Y.




OVER-THE-COUNTER SECURITIES

/

SINCE

1932

later

the

in

relieved

by

and
of Railroads,

the action of President Wilson
and

208 South La Salle Street

wer^

considerably

will

explain the recov¬
prices at the close of
In September the market

more

teristics

revealed

common

the

to

charac¬

periods

of

active speculation at rising prices,
and it became apparent that the

bull

campaign,

such

a

marked

which
feature

had

been

earlier in

the year, had during the summer
months
been
merely suspended

j

'

(Continued

on

page

1133)

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162

Volume

1133

Par

The Fiist Yeai After World War I
(Continued from page 1*32,)

the

Instead of definitely checked and
ended.
Some
remarkable ad¬
vances
in prices now occurred.

further adverse
developments, : and in particular
the further weakness in foreign
exchange furnished occasion for

There

some

was

but
interest
was
chiefly
centred on
the labor
troubles, and as these assumed a
less menacing phase,
the stock
market reflected the fact in high¬
er prices and renewed buoyancy.
Efforts to avert the steel strike
worriment,

proved unavailing, and the strike
was
definitely
inaugurated i on
schedule time, namely Sept. 22,
and

maintained

was

for several
the cer¬

thereafter, -but

weeks

of its defeat was obvious
from the start, and* inasmuch as
the labor situation elsewhere had
tainty

greatly changed for the better,
the speculative spirit also revived,
and
prices once more rapidly
moved upward. Towards the close
of September
the improvement
developed into positive buoyancy,
an attempt to widen the scope of
the steel strike by extending it so
so

the

include

to

as

plants

of

the

Bethlehem Steel Company having

proved

failure.

absolute

an

In

October tremendous

activity, with
great advances in prices,
distinguished the speculation. In
the case of many of the higherfurther

specialties
the
upward
spurts were of sensational propor¬
priced
tions

and, considered in connec¬
with the antecedent great

tion

rise, served further to mark the
bull movement

the

in

notable

most

change

of 1919

records.

as

Bear

Ex¬

operators

had their innings on

occasions, the
market yielding to pressure when
developments in industrial affairs
unpropitious, but their suc¬
cesses were invariably temporary,

were

after

and

ket

each reaction the

quickly

mar¬

its upward

resumed

the

November

tremendous

a

to

never

the

industrial

minated—and in

a way

that could

doubt of its termination.

no

Renewed

tension

in

re¬

money

sulted in the

calling of loans on a
large scale, and this in turn led to
extensive forced liquidation. The
recrudescence

of

the

speculative
fever in October had given the
stock market a dangerous aspect,
and

it had become manifest

further drafts

ties

they also

The

November

did

ever,

cember.
was

not

In

of

the

the

as

collapse,

continue

distinct

even

had

some

established

were

De¬

recovery

though

the

in

seemed

to

af¬

unimpaired

reverses

on

Par

Cleve

...

Lowest

Opening

Erie
*

banks

of

New

Lack

6

52

t

Maxwell

Motor

17%

12% Dec

30

20% May 19

13

i

Mexican

Petroleum

75

663/4 Dec

12

Lead

30

233/4 Sep 24
39% Dec 16

100
50

i

?' 45%

6

69%

National

33% July 10
48% May 19

27%

New

40%

Pacific

.83% Jun
■

v

116

Dec

16

3

123

100

31

28

Jan

30

38% July 29

37

100

31%

25% Dec

12

40% July 17

26%

Apr

Delaware

&

Western

50

Hudson

100

Lehigh Valley
Ontario

50
&

Western

100

Reading

50

207

170

Sep 23

213

182%

172% Mar 18

217

104

55%

91% Dec

1

40% Dec

30

20

16% Nov 28

823%

73 % Dec

12

Aug 19
May 7
May 29

116

60% Jun

Canadian

Chicago
Chic

100

&

St

100

Paul

100

Chic & North

Western.

Chic

&

Rock Isl

Colorado

Pac

(new)

Southern

&

Denver & Rio Grande
Great

,

Northern, pref

Illinois
Minn

Central

St

Paul

&

Pacific

Southern

Pacific

Union

S

S

M

—

126% Dec

7% Jan 13

7%
39%

34% Dec

12

85

28

100

25%

22% Jan 21

100

21%

19

100

33A

100

95 %

973/4

Nov

Dec

13

3% Apr

7

determined

190

change
ing

Texas

93

U

42

2

16%

76%

S

Co

Food

Corp
(The)

Products

S

U

S

Rubber

S

Steel

7%
86%

sale April

119% Aug

8

May 16

98% May 29
99% May 27
Jun

2

102%

138% May 29

123%

115

'Sinclair

Ex-dividend.

x

6%

78%

to Sinclair Consol. Oil Corp.

that

and

Atch

Topeka & Santa Fe
City Southern

Missouri

Kansas &

Texas

Louis

93%

80% Dec 12

19

13

100

Pacific

St Louis-San

Texas

100
100
100

Preferred

St

100

Francisco

(new)-.

Southwestern

Pacific

5

83/4

Nov 28

Norfolk

42% July 11
140% Oct 22

49
A 32
62%
x59

Dec

30

Feb

11

109

68% Feb 10
71% Jan 18

145

4% Feb

10

8% Jan

13

22% Nov 29

25

Coin
Bank

12%

Sales

25%

Imports of merchandise

9%

and currency in U. S.

Business

49%

46% Feb

10

89

52
184%
t66

45% Jan 22

151

Oct 28

2

345

Oct

8
1

167

66

104

Apr

x97% Dec

80%

73

139% NOV

10

115% July 14

12

117% July 17

10
100
100
50
25

74%
53
88
41%
26%

Feb

7
22

21

92% May 26
59% Jun
9

23% Jan

22

40% Jun

SUMMARY FOR TWO

Exports of merchandise

23% Jun

9

13

Net

70% July

2

41%

Gross

exports of gold

100

107%

Western

Line

Railway

95

1

Dec

97

100

8%

100

17%

12

Dec

19

July 23
23% July 17

14

100

29%

20% Dec

12

33

22%

100

70

52% Dec

12

72% May 27

6% Dec 27

12

6%

May 19

56

100

Mfg
Chemical

Beet

Can
Car

Sugar..
—

&

Fdry

American Cotton Oil
Internat

Corp

Locomotive

Smelt & Refining
Steel

Foundries—_

100
100

32%
101

65

Jan

3

42% Feb

11

84% Feb

10

100

39%

39% Jan

2

...100

**55%

*♦52% Feb

100

61

58

Jan

21

76%

61% Dec

1

33%
100

112%

100

100%

100

195%

100

33% May 10

536

111% Jan
95

51% Oct

8

50%

113% May 1
101% Oct 21

91%

68% Sep 30
5
148% Nov

67% July 14
8ttl32% Oct 31

100

Tobacco

of Mass.

62

47

Sugar

Woolen

2

93%

Telep & Teleg..

Amer

21

100

Amer

—

Jan

Sep

100

Amer

Refining*

30
87

21

117% Oct

7

94
55

tt 116%
101

89% July 16

69%

47

45%

July

148% Oct

7
29

2

87

,

55

.

A 32

'

loi"

$
—$

7,961,320,139
417,519,523,388

$

earnings

shares

months)

(12

constructed

miles

1

t

1918

7,780,793,606
332,354,026,463
163,019>979
144,118,469
3,031,212,710
6,149,087^45
*20,972,930

4,915,516,^17
908,058,337'
x721

x686

bushels

940,987,000

921,438.000

Corn

raised

bushels

2,502,665,000

Oats

raised

2,917,450,000
1,248,310,000
all,030,000

31,015,364
47,177,395
1,863,580,381
66,855,462
544,263,000
377,719,000
247,338
1,505,317,260

39,054,644

Cotton

bushels

raised

—bales

—

(tons of 2,240 lbs.)

Pig iron produced
Lake

Sup. ore shipments by water—(gross tons)
Copper production, refined, in U. S
.
;_lbs.
Anthracite
shipments
(tons of 2,240 lbs.)
Coal of all kinds——.(tons of 2,000 lbs.)
Petroleum production (whole U. S.)
bbls.
Immigration into United States
No.
Building operations, 286 cities
:$

x

1,538,124,000
11,602,634

61,156,963
2,476,077,401
76,649,918

678,211,904

355,927,716
bl15,916
496,537,914

*Net imports, a Agricultural Department's estimate, which does not include linters.
of "Railway Age Gazette."
b These are the arrivals of alien immigrants.

Estimates

The

net

41,471

alien

in

arrivals

(Immigrant and non-immigrant)

for

1919 were

17,912, .against

1918.

-•

•

flv

•

.

f-

139%

Dec

30

108% Mar 10

191% Feb

4

314% Oct 24

277

45% Jan 16

169% Dec 31

162%

51

106%

Wheat raised

140%
50%

Dec. 31

(12 months)

earnings

Railroad

55%

109%

136%

YEARS

7,922,150,592
291,651,202
5,173,647,054
764,578,730

18%

18

68% May 17

76%
112%

Oil & Refining Corporation; name changed in September
tFirst sale was made April 8; formerly Distillers Securities
§First sAle was made May 7; previously

$
$
$
$

21

122% May 17
112% May 19

American

American

10

Sep
Jan

(12 months)
(12 months)

103/4 Jan

10% Dec

51% Dec 16

226

.113%
97% July 16
76%
92% July 14 A 67%

113,291,237
316,787,725
3,904,406,327

27% Jan 21

104% Aug 19

t

6 3

88% Feb

Feb

73%
109 »

May 27 -'

21

$

17%

13%

3Q

111% Dec

65%
51
82
40%

43%

3

lv'"

91% Oct

Jan

(12 months)

29%

56%

American

American

Nov

8

94%

Stock Exchange

100

100

118%

American

Amer

*69% May

113%

failure

at N. Y.

100

100

Agricul

American

122%

100
100
..100

clearings in United States

38% July 9
27% July 17

Miscellaneous—

Amer

98%

1

—.100

GENERAL

15%

100

Preferred

Amer

' 5

NOV

general statistics for 1919 and 1918:

83%

Ohio

Seaboard Air
Southern

20

..100

Jan

<101%

Oct

2

.

34%

107% Nov

*33% Jan

184

38

104%

May 26

value was $100 and range was from 68 Feb. 8 to 109 % May 1. IFir&t
ttFull paid.

are

25% May l9
16% July 22
25%. July 18

Nashville

&

&

&

145% Oct 22

8

21

82%
112 ;

11." **80% paid.

104"- May 27

Southern Roads—

Chesapeake

3

Jan

217:

tSee U. S. Food Products Corp'.

Below

Net

Louisville

94% Oct 23

1919

Kansas

Missouri

11

57

31%

?

96%

First

that

Securities

Company-

Chicago

of

UNDERWRITING

must

DISTRIBUTION

COMPLETE TRADING FACILITIES

Ex¬

out

Rawson Lisars & Co.

of

Members

134

SOUTH

LA

SALLE

STREET

CHICAGO 3

Ex¬

be

Chicago Stock Exchange

135 SOUTH LA SALLE STREET

prevailing

Stock

to

•

Both

Stock

was

that

borrowers

91% Feb
A 29% Feb

69%
>

Jan

.

87%

*

22

67

38

»

64

Oct

76 74%
*34

Westinghouse Elec & Mfg
Willys-Overland (The)

26%

65%
:105

3.

t

July 28

—100
100
No par

Virginia-Carolina Chemical
Western Union Telegraph

37

to that date par

91% Nov 29

264

—

79

16

12

162% Jan 23

..—100

Copper

72%

Dec

1283/4

Utah

85% Dec 30
Dec

100

132%

Corporation.

70

61

179%

100

Corporation

86

77

107% Nov

22

.100

100

104

91

29

100

Corp

•

131%

21

Alcohol...

Industrial

U

•'"<*

20

26% Jan

100

Iron

Oct

38% Dec

—

&

'52%

62% Jan

Coke

(The)

217.

8

credit struc¬

accommodation

sened.

Studebaker

Oct 23

Dec

28%

50

Corp

85.

|

67%

199

5

Oil

Cons

,42%
^88%

22

100

69%
32%

100,

i

97%
43%
100%

-

100

100

Car.

Oct

94%

■

23 0

66% Mar 14
173
Oct
176

21% Jan 31

Southwestern—

borrowing must be fur¬
ther extended, but must be gradu¬
ally reduced.
This
meant
that

accommodation

Steel

75% Dec 12

94%

92% Feb 10
30% Jan
3
68
Jan 21
27% Nov 29

& Trans—

22

100

30%

...

Sloss-Sheffield Steel

175

24% July 18
93% Jun
6

170% July 10
12% May 15
52% July 17
105
May 26
32% July 17

112 Va

100
25

SS

Pet

31% May 5
15% July 14
100% May 27

100

102

Pacific

1

96

100

Northern

160

.100

10

Preferred

Alton

&

Milw

Mail

Am

Pressed

Pacific—
Pacific

118% Jan 21
56% Jan 10

.100

133
57
26%

No par

Railway Steel Spring
Republic Iron & Steel

U
and

2

...

People's Gas Lt &

145

2

8

York Air Brake

Pan

135

Jan

38% Jan
144% Feb

-

Steel

55

Oct

63%
168%
113%

.169 %
X339
406% Nov
3
U 81
-93% Oct ~
67% July 11. •
49%
128%.May 28 .,,109%
82
Nov
5" • 79%
164
Nov
3
;
143%
43
29%
July 15
126 % July 14
43%

—i

54% Jun

Lackawanna

261

x49

100
..100

....

17

—100

Jersey

Corp
Co

(B F)

7

20% Jan 27

;15I

..100
No par
—.100

__

Feb

100

&

Corp..
Corp

Mercantile Marine

Sinclair

Delaware

Secur

Body

52% Feb

58

'99

Jan 21

29%
x49%
39

No par

32

100

100

Sugar

Kelly-Springfield Tire
Kennecott Copper
Keystone Tire & Rubber

Coal Roads—

Western

Cane

involve

must

Reserve, officials.

question

10

46

36

N Y N H & Hartford

change

the

10

65% Feb

48%

100

ture, if permitted. Bank officials
as cognizant of the peril as

new

34% Feb

69 %

100

Preferred

were

were

36%

100

the credit facili¬

on

menace to the entire

Federal

.100

Corn

31%

Central...

112

Continental Can

International Paper

England and Eastern—

Y

116% July 24
56
July 14
103% Jun
7

55 % May 27

.Boston & Albany
Boston & Maine

N

8

15

—

Central

56% Feb

283/4 Dec

N Y Chicago & St Louis
Pennsylvania
New

60%

50

_

New York

100

Leather

-„_100

Cin Chic & St L

107% July 15

Central

Goodrich

Closing

55% Jan 20

56% Oct 20

Int

Highest

61%

2

Fisher

1134)

page

156% Oct 22

21

Motors

(Continued

64% Jan 29
55% Jan

General

market

74%

20% Jan

Cuba

under-

192% Oct 31

Feb

■

61%

Electric

to

100

77% July 16

8

92

20%

General

manner

100

Closing

-Highest

Lowest
54% Nov 29

100

Products Refining
Crucible Steel of America

encountered

60%

107%;

100

Distillers

no

Corp

common

served

Trunk Lines—
Ohio

Steel

Opening

50
100

Calif Petroleum v t c

during November, notwithstand¬
ing their severe character, had
in

SS Lines

Colorado Fuel & Iron

ford evidence that the underlying

remained

I

W

Locomotive

Class B

RANGE OF LEADING STOCKS IN 1919

&

&

Bethlehem

days, and the

ALL PRICES DOLLARS PER SHARE, NOT PER CENT

Baltimore

Gulf

Baldwin

bad

more

and that the

how¬

into

Atl

with which upward reactions

ease

strength

fact, this last month

of

one

values

extent

same

properties.

Allis-Chalmers

slump in prices occurred and the
bull movement was definitely ter¬
leave

month

Preferred

course.

In

of

though

among

Stock

end

had to undergo severe
liquidation
and
showed
weakness

Anaconda Copper

ANDOVER

CHICAGO 3,

1520

ILLINOIS

les¬
TELETYPE CG 1399

Inability to replace exist¬

loans

brought many daring
a realizing
sense of
they were running and
induced them to lighten the loads
they were carrying. On Nov. 12,
call loan rates
got up to 30%,
operators

to

the risks

with

disastrous

effect

on

ket

DANIEL F. RICE AND COMPANY

Stock

Exchange prices. While the

WRrffrvW

mar¬

ESTABLISHED

many bad days during
month, Nov. 12 may be said
have been the
worst, because
that day the declines were

the
to
on

most violent and
general
it first became

bull element had lost control and

manipulation
check

the

further

eign

new low

the

levels bri sub-"

at

first

COMMODITIES

-

GRAINS

ROBBINS & MYERS, INC.

exchange situation being an
depressing influence,
shares

principal exchanges

LISTED AND UNLISTED SECURITIES

SOUTHERN UNION GAS COMPANY

days, the unfavorable for¬

railroad

and other

CENTRAL SOYA CO., INC.

avalanche,

carried

I i

CHICAGO BOARD OF TRADE

!

Privat; Wires Connecting Principal

MARYLAND CASUALTY

additional

Cffices

suf¬

fered

comparatively little, which
was
natural, inasmuch as they had
not
participated in the long series
ot

■

NEW YORK STOCK EXCHANGE

Growth Situations

longer availed to

downward

liquidation

market to
sequent

no

Members

Allen, Swift & Co., Inc.

and then

apparent that the

ihe

***'

1923

had

sensational

^e spring and
dustrial-

advances

made

in

.summer in the in¬
but towards

properties-,




ALEXANDER
0UANE

ALLEN,

SWIFT,

CHARLES H.

President

V. P. & Treasurer

CLARENCE E. MARTIN, V.

120

SO. LA SALLE
.

CHICAGO

STREET
3

WILLIAMS, Secretary

Telephone:

DEArborn

662 3

New York

Chicago
Miami

President

Miami Beach

Ft. Lauderdale

THE COMMERCIAL & FINANCIAL

1134

CHRONICLE

Thursday, September

6.

1945

it

K

confidence

*/

character of the

h

vate

fl
K

i
I

#

.'■•■ft
f

,

i.

•«}

*«

*i

:

t*

'.3
'w.J4.

..

5-'»
V:

$

M

fcf

l

''

to

tion

of

V

4

'

ft

'

H

be

de¬

;

•!

>:M

I >$

I
r«v

$&

1-

III
1II
«-:■

■

:• rv ■

and dropped to 126% in Decem¬
ber, with the close 132%. Milwau¬
kee
at

&

St.

{

The year's record for the rail¬
road shares is of very substantial
the

for

declines

indicated,

while
of

on

already

other

the

of the industrial

hand the record

is

reason

Paul common,

39%,

reached

touched

1.

34 %

in

at 37.

from

93%

52%

opening
in July,

December,

Atchison moved up

in

general

nevertheless.

advance

The

last

months

they always declined
general market was
weak and often sagged when the
industrial list was marching ahead
when

the

with great rapidly.
line

stocks

Among the

we

find

New

York Central opened

in January
75, reached
83%
in
June,
touched 66%
in, December, and
closed December 31 at 69 %; Penn¬
sylvania opend at 45 V2, sold at
48% in May, reached 39% in De¬
cember, and closed Dec. 31 at
40%; Baltimore & Ohio common
opened in January at 50, touched
55% in May, dropped to 28% in
December, and closed the year at
31%.
Among the Western and
transcontinental roads, Union Pa¬
cific stood at 123% at the close of

the

against 128% at the
opening, and in the interval sold
as high as 138%
in May and as
low as 119% in August. Southern
year,

Pacific

and

Among

Rock

Island

■

.

Southern

railroads, the
Railway stock did not
share in this improvement. Open¬
ing; at 29%; the common shares
sold at 33 in May and dropped to
Southern

20% in December, with the close
Dec 31 22%.
The

record

shares,

for

of very

The motor stocks
inent

the

industrial

already stated, is one
noteworthy improvement.

as

in

were

very prom¬

the

rise, and .General
Motors
Corporation
common
jumped up from 118% in Janu¬
to 406%

ary

in November;

even

after the break the latter part of
the year the close Dec. 31 was at

339.

Studebaker

common

rose

Corporation

from 45%

in Janu¬

ary to 151 in October, and closed
Dec. 31 at 109. The oil and rtfbber

stocks

were

also

Pacific is
and at

ary, sold at 345

with

tions,

in October, with

ft-

20%

so

lower than last year.1'

The

have

railroads

'

problem. The other day
Chicago somebody said to me,
going to happen to At¬
chison common if gross goes off
30%?" I said, "What's happening
"What is

31

at

104%..

United

States

Rubber common,

from 73 in Janu¬
ary, got up to 139 % in November,
with the close 136%, and B. F.
Goodrich common, as against 56%
in

American

Sugar Refining com¬
111% in January, rose
October, and closed at
139%; and Cuba Cane Sugar com¬
mon jumped from 20%
in Janu¬
mon, from
to 148% in

55

in December, with the
Some of the
steel

52%.

shares

great

.were
marked
up
with
rapidity under violent and

wide fluctuations. This is not true
of the shares of the U. S. Steel

worth

at

106%.

On

the

other

hand,

Wtmbtri

.•4

conspicuous

features

between 58 and

of

209

S.

LA

/SALLE

Tel. Dearborn

STREET
5600

?

sold

CHICAGO

4

Teletype CG 146

117%, Amer¬

against 45%
in January
169% in December, and

International

Paper
common,
which
against 30% in January
sold at 82 in November, and these
illustrations might be extended
indefinitely. As a matter of fact,
to

*5

at

enumerate

advances

iW;

in

would be to
t

all

the

the

noteworthy

industrial

group

give nearly the entire

list.

m

12

Real Bond Prices
of

Most

this

I

billion

Nickli

for

to

Nickel

time

the

dollar,

dollar.

a

Plate
down to

sold

and stock*

-■

j

not

am

dol¬

down

lars worth of debt was owned by
financial institutions.
Then
the

to

depression came along, and on
top of the depression, the unregu¬

things happen on the
up;,
side, because when Nickel
Plate

lated

industry

trucking

along.

It

was

2

even

share

a

came

reduced

fixed

million,

as

3%

lated

trucks, the rails also took a

credit,

25%

cut

in

rates.

blow

That

the

to

was

railroad

a

in¬

30,
at

millions

of

We

them

sold

5's

the

to

of

1980.

banks

and

companies
at
102%.
later in 1931, those

year

bonds

Wabash

sold

the

on

New

York

could

decline to those levels.

ever

It's

simple enough

as

you

an¬

alyze it.

Supposing, in 1930 and

1931,

the

the

all
-

to

sell

The

for

buyers

of

.01

of

a

cent

railroad

a

secur¬

stopped

buying and started
nobody to sell
generally speaking, almost

to sell.. They had

being
to

answer

must

be

I

some

the

riddle, so, for the
last eight years, I have been
try¬
ing to create a market among in¬
dividuals

the

prices

for

railroad

theory
didn't
a

securities,
those

indicate

worth.

were

indicated

that

what

condition in the

happen to

thing.

have

It

to utilities

would
or

low
the

They simply

ket which would

as

that

down

restored

those

same

to

their

people
10

20

40

1942

Delaware

charges

and Hudson
share and the bonds
They reduced their fixed
from 5 million 1 to 1 mil¬

lion

7,

the

the

call

sold

at

$7

for 50.

to

a

bonds are selling at
price; the stock went up

57, and is
In

1942

now

when

you, Chicago
of '87- were

selling at 44.

I

first

North

t

talked to

Western

4's

selling at 21. They are
selling at the equivalent of

now

121.

I predicted

worst

then that in the

time, Chicago North West¬

preferred would be worth $20
It was then seling at
$2.
Even today it is selling at 66 and
it has paid $23 in dividends.
ern

share.

a

v

In

other

lows which

mar¬

any¬

happened

real estate securities

well.
Even before the

started

we

knew

European War
that

our

created'

those

think of

this; if institutions were
to use "prudent" judg¬

allowed
ment

ap¬

proach would work out, because
we had the
reorganization of Chi¬
cago and Eastern Illinois
long be-

low

instead

if

ment;

of

they

same

amount

they

would

prices.

"statute"

today.

But

where

they

it

10,

to
the

real
allowed
average,—in effect, if

stuck

got

they

corner,

at

have

estate,

in effect to

judg¬

they did at par,
a
beautiful

as

profit

they

Just

allowed

were

invest

and

average

dollar

business,

my

thought that there

bonds

charges from V/2

premium.

a

give

Basis of Market Recovery
This

on

the

each"

would

ities

own

words, the extreme
were created, by this
other, they couldn't1 mechanical factor, of no buyers
anybody. Obviously sugar and the buyers
becoming sellers,

started

sell

buyers of sugar in
stopped. buying, and
selling. - - They
couldn't,

world

course

cents, bought Nickei
3%, only three months ago

Iri

Stock

Exchange at 2%, $27.50 for
a
$1,000 bond.
How can such
things happen?
Obviously, with
the
institutions owning all
the
bonds, if they had not sold, it
would be impossible that prices

and

and

As a result, we have such things
happening as this: In April, 1930

syndicate brought out

Of

who sold out the bonds at

Plate

financial

don't

theylhave,

million,

dustry.

a

you

them.

same

depression, but with the unregu¬

double

though

on

bad enough with the

unlike

are

with

business

a

out and
cents on the

didn't

go

away for 5
the next day.

They built

it up, held it, carried it along,

and

eventually bailed out.
But in 1942 you knew what you

going to get in Northwest.

were

You knew you were going to

get

$200 first mortgage bond and a
$500 income bond and 4% shares
of preferred and a half share of
a

and if you put values on
just a question of

common,
them it

was

waiting
again a

solvent

until

they
were
once
corporation.
very
people who created
those
low
prices
eventually
bought first mortgage 3's of the
Northwest which now sell at 104.
The

The

Dow, Jones Averages Again

Going

back

a

moment

between

the

to

industrials

and

rails, as I said, one sells at
172, as far as the public is con¬
cerned, and the other at 55. The

M
'iff

LINK,

GORMAN

&

CO.

Dow

H'
jjf

WEBBER-SIMPSON & CO.

UNDERWRITERS and DISTRIBUTORS

i Vs
y>.

Complete Trading Facilities
Industrials

Investment Securities

L.

Municipals
20S South La Salle Street

CHICAGO 4

CHICAGO 4
Bell Teletype

CG 1213

Telephone State 7844

Telephone Andover 1811

Teletype CG 1268

less
&

than

N.

H
IHK*

iff,

.1

have
Atchison
Pennsylvania

3%.

Yet

yielding
6.75%,

7%,

we

yielding
yielding 6.75%, Coast Line yield¬
ing 6.50%, Southern Pacific over
6.50%, and Great Northern over
6.50%.

I think that railroads

will

get their share of the peacetime
business, and with the other facts

(Continued1

4.$




stocks yield 4% on the average,
and high grade bonds yield a lit¬
tle

Public Utilities

208 SOUTH LA SALLE STREET

>y

just made

new

are

Established 1931

Railroads

Jones industrials

high for eight years. They
still about 22 points under
their high of 1937. The rails are
likewise 11
points under their
high of 1937.
>The
Dow
Jones
industrial
a

INCORPORATED
H

I

Those

one
on

difference

:v/>

example-

ago

sold

trying to indicate that
the. institutions own
stocks. They
didn't.
But /bonds control
stock
prices. If you sell the bonds
of a
company down to 10 cents on
the
dollar, the stocks must go

in the Thirties

10%

140.
at

cents

down

about
owned by the

the

Foundry between 84%
Among shares in other
lines of industry distinguished in
the same
way,
might be men¬
tioned American Woolen
coriTmon,
which

of Chicago Stock (CxcLanf*

were

years

common

fered,

bonds,

Crucible
Steel
common, to, so,
after selling at 52% in
February,, all railroad- bonds went down,
was
quoted at 261 in October, even
Pennsylvania bonds, to 35
with the close 217, while Republic
cents on the dollar; the border¬
Iron & Steel
common, from 71%
line bonds like Southern
Pacific,
in January, advanced to 145 in
20; and the defaulted bonds al¬
November, with the close 122%. most without
exception
to
10
The equipment shares were
among cents on the dollar.

and 148%.

William A. Full er & Co.

railroad

preferred

bonds

institutions.

pound.

ican Car &

If'

of

98% of which

opening at 94% in Jan¬
uary, touched 88% in February;
reached 115% in July, and closed
common,

31

happen to

and

bonds

tory of the industry. .In 1931, we
had
about
10%
billion dollars

sell to

mon

"

U

must

Corporation, which moved up and
in orderly fashion; Steel

down

Dec.

far

stocks, we
necessarily review the his¬

railroad

three

Plate

about
sold at
about 11
and the bonds at
about 52
Th*
5%% bonds sold for 52.
Todav
bonds are all paid
off and
the
preferred stock is
worth, under
the exchange which
is being of

the future,

to what I think will

another

Only

25, the

same

as

and that

bankruptcy to Ini
.indicated in the priX"

ets,,clte

concerned.

are

European War,

from

vency was

rails

the

rebuttal

no

In order to forecast
as

One

distinguished in the same
American Beet Sugar, from
62 in January, advanced to 101%
in
October, and closed at 94;
way.

Baldwin Locomotive com¬
fluctuated between 64% and
156%, American Locomotive com¬

* *♦?

have

industrial stocks

insurance

to

change

think

why

reasons

value and in

no

breath

mon

0>#

of

are

always

can

hundred

a

as

year.

■v*>J

f'J?

of

likewise

close

rails

like

not

January, sold at 93% in Octo¬
ber, with the close at 81. Sugar
stocks, on the great rise in the
price
of
the
commodity, were

ary

fore the

gross

off 100%." There is not
going to be much gross for most
industry in the next four months,
In other words, those who do

in

Dec.

The

Motors?

General

to

has gone

recon¬

no

version

the

■:%
v.

•

shares.

pushed up
great rapidity. As illustra¬
Texas
Company
stock,
which was quoted at 184 in Janu¬

an
exception to the rule,
102% Dec. 31, sold a trifle

that in my opinion the
net income, despite the fact that
gross may have gone down 30%
in the last five months, will be
almost the same—maybe
10 or
gross,

January to 104 in
May, but December saw it down
to 80%; the close was at 83"%.
the close Dec. 31 at 226; and PanThere was a speculation two or
American Petroleum & Transport
three times during the year in the
moved up from 67 in January to
low-priced railroad shares, and
140 % in October, with the close
these make a better record than

%
•

and

advances,
even huge advances in the great
majority of instances notwith¬ the rest of the railroad list. Texas
standing the severe break which & Pacific, in
particular, belongs
occurred the latter part of the in this
class, it having enjoyed a
year.
The fluctuations in rail¬ sharp rise on the Texas oil de¬
road shares all through the year
velopments; from 27% Jan. 21, it
were less extreme than in the case
sold up to 70% in July, but closed
of the industrial properties/These Dec. 31 at
only 41%. Minor im¬
shares were laggards in the great
provements also occurred in St.
advance of the spring and yet did
Louis & San Francisco, Missouri
shares

at

:<fcf

the close Dec. 31

closed

trunk
$'

\

•

of Gov¬

would

control

until March

ferred

six

•

elapse for the comple¬
pending legislation the

ernment

''

"',i>

time

date for the termination

1,4;

,

latter

102,

at

>

'l;t

fV

though the

vpontrol,

after
having
Expect Reduced Earnings
meanwhile been up to 115 in June
From now on we are naturally
and down to 91% in November;
going to have lower gross rev¬
for
Northern
Pacific
the
price enues on American railroads.. For
Dec. 31 at 79 compared with 94%
the first seven months they were
Jan. 2, the high figure for the
about the same as last year, but
year having been 99%
May 27, as you see carloadings go down
and the low figure 77 Dec.
12. and gross go down, and obviously
Great Northern pref. opened at
net, you will see the carry-over
95 %, got tip to 100% in May and from the first seven months of
down to 75% in December, with EPT
equalize that lowering in
January

< at
78%. Of all
of the month prospects in
that regard improved, and Presi¬ the railroad shares the Canadian
Pacific
suffered
the
widest fluc¬
dent fcVilson, after the
close of
business on Dec. 24, gave notice tuations; opening at 160 in Janu¬
that in order to allow a reasonable ary^ it got up to 170% in July,

H

;•

figures of the

part

1

r

cases

in December, owing to the
delay by Congress in the enact¬
ment of legislation providing for
the return of the railroads to pri¬

'

.

most

The

year

U

I'

1:

in

reached the lowest

•f

■

speculation.

shares

railroad

4

the

part of
Stock Exchange habitues or the
general public in the enduring
on

(Continued from page 1071)

higher than the opening price in

(Continued from page 1133)
mine

'

Railroads in Peacetime

The Fiist Yeai After World War I

!!?

on

page

1135)

,

Numbec 4418

162

Volume

THE

COMMERCIAL

& FINANCIAL

Railroads in Peacetime

CHRONICLE

Twin

113^

City Bond Traders Club

roads had paid out as much as
(Continued from page 1134)
the
that I will relate to you, they will industrials, the railroad stockhold¬
fre justified in going on a regular ers; during the war would have re¬
ceived about 2 billion dollars in
dividend basis.
'
If you do not believe we are go¬ dividends. Instead, 2 billion dollars

11

.

*

have any kind of business

ing to

peacetime, I don't know what
vou can buy to protect yourself,
because well do I remember in
in

industrials were selling

1937 when

higher than they are now.
Ob¬
viously, stocks are not going to

3% basis.;The market is
discounting increased dividends,
when EPT goes off, even though
go on

a

gross

goes

off: 40 or 50%.

That

What they are dis¬
counting
inindustrial
stocks.
Why can't we do the same thing
in railroad stocks?;, Don't forget,
if we have
bad times, nothing
certainly

is

stays up, as far as stocks are con¬
cerned.
You remember 1937 and 1938.

Averages.
Allied Chemical sold down from
258 to 124.
American Telephone
sold from 187 down to 111, Chrys¬
ler from 135 down to 35, and so
on.
Nothing was exempt. The oil
stocks, like Standard Oil, went
down 50%.
I think you will all grant me
that today's industrial stock prices
indicate that we are going to have
a relatively good peacetime busi¬
Go down the Dow Jones

the

over

ness

next

Therefore,

years.

which

railroads,

four

five

or

believe

I

at

are

the

such

a

great spread from the industrial
stocks, particularly in yield, that
we can look forward to good rail¬
road stocks selling on a 5% basis
with the present dividends, and
the gradual entry into that divi¬
dend-paying field of a great many;
other stocks.
Great

Northern, for example,
its fixed charges 10 mil¬
dollars, which amounts to
about $4 a share.
They have cut
has

cut

lion

debt

their

55%.

I

see

no

reason

why Great Northern, for the fore¬
seeable future, cannot become a
regular dividend-paying stock the
same

C.&O., Pa., and U.P. Even

as

the

before

collapse

in

railroad

credit, Atchison had a good capi¬
talization, yet since 1939 they have
cut their fixed charges 34%. I see
no

in

reason

the

foreseeable

fu¬

ture %why

Atchison can't maintain
$6* dividend, and at 90 it yields

a

almost 6.60%.

next

ern

group

Pacific,

Those
now

on

Those

a

ple, would probably have sold up
to 150, paying $15, and then it
would have been a war
baby. But
it didn't do that.
earned

about

stockholders

sult,

the

Southern Pacific

$70

and

about

stock

sells

As

in

a

low
Charles J. Rieger

Effects of Debt Reductions

This $65 equity which has been
built up makes the Southern Pa¬

cific

worth

than

it

for

more

would

have

the

been

and

son

Great

into

up

paying
follow
bond

In

that

regular
and

future

will

those

Ninety
earnings

war

retire

bonds and

rest

second

ganization
problem.

of

thing
37

With

Norfolk

of

build

of

is

the

that

stocks

reor¬

the

exception of
Western, the new

and

and

dramatic

change

in

in

this

Of that number

14

vania and C.&O.

re¬

out

$7.50,

particu¬

they

me,in

January 1 of this
year,
there was about $8,900,000,000 outstanding. Most of this
is

listed

the

on

New

York

Stock

Exchange.
These
good
credit
railroads,
illustrated by the Pennsylvania

I

roads

reduce

it

to

which

dollars.

did

about

see

being

the

analyst

an

relation

The best

ones

of

you

gross

to

had the most

The
sold

held by the public.

borderlines, $2,700,000,000,

at

of 46 in 1942.
exceptions:
Illinois
Central, New York Central, and
Lehigh Valley, and Missouri, Kan¬
sas and Texas,
every bond ;out of
that group is now selling [at the
call price.
V
With

an

average

four

and Union

Pacific, carried $2,100,000,000 of that debt. The bank¬

rupt

carriers

tried

to

same

If

about

in

amount.

you

are

want to

1930

you

choose from.

an

institution

and

buy railroad bonds,
had $10 Vk billions to
You

are

not allowed

to

individuals.

You

have

no

000,000
on

the

1,'

there

board.

bought by

bonds

They

any

institution.

ing

the

call

There

is

at

basis.

are

have sold probably twice or three
as
high as they are now

selling. If that situation

price

or

money

The

same

institutions.

they had

a

thing is true with'the
Whereas at

one

But

they

Take

of

bonds, they automatically lost
$2,700,000,000, because they can't
buy defaulted bonds.
they have no choice

yield.

Therefore,
butia

the

non-dividend

didn't

So far

as

e;

quantity is concerned,

this change in reorganization has

cannot be

judged, marketwise, by reduced the available amount of
any
institutions,
because
they bonds for institutions by about
can't affect the
market, except by one-third. Every day we see this
selling, and generally speaking, refunding, you see cuts in
debt,

they have sold and these defaulted

(Continued

on

page

1136)

that the 14 doing 23% of the busi¬
ness now have
practically no debt.

Compliments of-

Allison -Williams

Company

MINNEAPOLIS

ask
.

for

us

.

Trading Department:

Bids

.

.

Oscar M. Bergman

Offerings

.

—

Kermit B. Sorum

.

RILEY

&

FIRST WISCONSIN

COMPANY
NAT L

UNDERWRITERS AND DISTRIBUTORS

BANK BLDG.

Ok INVESTMENT SECURITIES

MILWAUKEE 2

Daly 6500

Teletype Mi-260

do

r-iLMfcv 5*

war

that.
group

earned
paid nothing.

the money went

to

debt

re¬

purposes

order to
improve their credit.

Dividends determine
extent

where stocks

determine

rail

considerable

Period,; and

stock

to

sell.

a

It

after

the

in

(ftfyamtrr

will

bond

a

this

Municipal, County and

re¬

covery has been complete.
In

from

the

1937

period,
to

1943,

S»nec* ab°ut $68
JpoO.

They paid

for

Company

great

prices to

extent

after

out

OF THE CENTRAL NORTHWEST

A1

industrials

J. M. Dain &

paid out
about 73%.

$40 and paid

J10. They paid out 25%. That
Represents about 2 billion dollars
Roi the 20 rails in the Dow Jones

average. In other words, if the rail¬




SPECIALISTS IN CORPORATE AND MUNICIPAL SECURITIES

School Bonds

example

and

ine railroads
earned

3%

\

stocks.
In
1943
they
about $11 a year and
All

time

choice of $10 V2 billions

A

babies.

duction and for other

3%

a

to be
selling at the call
no

had hap¬

they would have been

of

con¬

price. It's a one-way street, it can
only go down. It can never go up.

be

They

individuals

as

made in bonds

listed

cannot

far

most all the other bonds are sell¬

$2,700,-

were

defaulted

As

cerned, there is not much choice
except defaulted bonds, because

com¬

petition from the great money in¬
terests of this country,
trustees,
fiduciaries, banks, insurance com¬
panies, and the like. They cannot
buy defaulted bonds. As of Jan¬
uary

Who Purchases Defaulted Bonds?

$2,-

carry

700,000 and the borderlines

WISCONSIN

Quotes

would

times

pened

worth

of

are now

dividends
one

factor, and if these railroads
paid

dollars

bonds

gross and had the least debt. That
of course has switched now so

dition at the expense of the stock¬
holders. The stock market unfor¬

had

if
14

Greetings from Milwaukee

buying
bonds.
spending all their mon¬
improve their financial con¬

other

50%.

over

little bit easier to

a

it

Without

Thirteen of them

were

recognizes

Rue

are

paid an average of only $1
share. They were cleaning up
their
house
by

lar

reduced

These

debt.

of them

billion

As

buy defaulted bonds. That is
why the great opportunity is for

can

country.

IOV2

of debt.

Northern

23% of the business, and the bor¬
derlines 26%.

many of them, 137
altogether—I cut them down to
41, and they do 88% of all the

before, the rails had

you

charges of 189 million. The
bankrupt carriers, 175 million.
Yet the bankrupt carriers
only did

so

about

said

ductions of about 50%. The good
ones
continued
to
reduce their
fixed charges. For

fixed

this

I

the

carry

financial setup of railroads—
are

about

36% of all the business, had fixed
charges of 158 million, and they
successfully carried those fixed
charges. The next group, the bor¬
derline group, attempted to

a
long time. Now the rails
starting to get the advantage
it. Not far back, you remem¬
ber, we had Great Northern 6's,
5's, 51/2's and, yesterday, 3Vs.

understand

For

As

40%, and then
through refunding they reduced
it another 20%, or the overall re¬

see

are

to

by

I think it is

of

order

market.

open

example, Great

now

it for

dividend-paying basis.
stocks, incidentally,

tunately

first'

them, which

1943 earned $10 a share

more than
any

charges in the

example, Nickle Plate reduced its
fixed charges in the open market

advantage of

business

by the way¬

were wiped out.
The bor¬
derlines have reduced their fixed

The third factor is
money rates.
The utilities got the

there

fell

stocks

the

up

the best capitalization of
any rail¬
road in the United States.

the

of them

reorganized.
The
fixed
charges have been cut 75%. The

used to

were

Chicago North Western has

drastic

14

been

completely solved their financial

In

by

side—Missouri Pacific, Northwest,
St. Paul, to illustrate.

war

cent,

per

to

Maynard

'

Central,

and

will

railroad plant. There is the first
factor in the financial
change, the
difference between the railroads
in 1946 and the railroads in 1938.
The

Co., Minneapolis.

During this period, the 14 have

earnings.

Carl J. Kail

—«

dividend-

the

gave the railroads

war

Mahoney

Vice-President: William J. Lau, Frank &
C. D. Mahoney & Co., Minneapolis; Treas¬
Minneapolis; National Committeeman: Maynard W. Rue, J. M.

became borderline, illustrated
Southern Pacific, Illinois

go

along as they solve their
problem and their credit

Railroad,
and D.&H.

Line,

the

Dam &

if

problem.
The

C. D.

my

Northern

group

William J. Lau

President: Charles J.
Rieger, Jamieson & Co., Minneapolis;
Belden Inc.
Minneapolis; Secretary: Cornelius D.
Mahoney,
urer:
Carl Kali, First National
Bank of

they
opinion,
using that group of stocks, Atchi¬
used it currently.

a

ey to

re¬

the

and

They

the

gave

$4.

40's.

the

are

which in

open

to
improve their
But nevertheless, the way
the stock market recognizes
things,
if they had paid that 2 billion
dol¬
lars, Southern Pacific, for exam¬

plant.

Southern

Coast

are

buy bonds in the

and

depression, illustrated by Pennsyl¬

in the Dow
Jones averages includes New York
Central, Northern Pacific, South¬
Atlantic

market

tained their credit all
through the

The Dividend Factor

The

used to

was

St.Papl

39 South La Salle Street

|

'"Phone Randolph 3900

Company

Minneapolis

CHICAGO 3
Teletype CG 540

TELEPHONE ATLANTIC SI4I

TELETYPE MP-73

Duxtrm

k.

I.

Valley bonds which are selling in
the 50's.
I think the Morris &

J'(

•!V.<

Railroads in Peacetime

K

fy.
iK

K

K
■

1

a

is

market go up, and one of them
to cut half of the available

That is gradually being
these
refundings, like Great Northern
yesterday, and Southern Pacific,
which is coming along, each one
involves a further cut in debt, so
the supply of railroad corporate
securities is gradually becoming
less.
And yet, as we all know,

$40.
fixed

supply.

done in railroads. As you see

4
M

-'jv
.R

•

;

ft.
A

A

■

-

">■'

is

ft

be

had, 1938,
they made 500 million dollars;
They never operated at a deficit
All you have to do is look at U. S.
available
Steel for 1938, with a large def¬
tremen¬

■1:1

made

search

1

■J'

;ri

railroads have reduced theirs from

-I

$190 million to $148 million; and
in their re¬

the bankrupt carriers,

■:P

organization, from $176 million to

ti:
*?*
;

$54 million. When you add up that

$

reduction, it adds up to 204 mil¬
dollars.
Capitalize 200 mil¬

;
!

lion

}l£

.

lion dollars at 4%.

lion dollars.

:^f

a

* *

4%

lose

debt

on
was

coupon.

the

railroad

That is 5 bil¬

Two hundred million

is 4%

dollars

railroad

st-v

5 billion.

Most

pretty close to

You

equivalent

are

of

going to
billion

5

but the process
Refunding will
bring it down further.

ill

still

•

charges are not
dreaming about.
actual. All you have to

something we
They

are

for the reorganization

through. Their actual fixed
charges will be down to 280 mil¬
lion dollars, therefore if we ever
go back to 1938 we will cover
them better than twice, which is
to go

good as the utilities did during
that period.
as

good
credit rail¬
roads, what is cheap? There are
no
bonds selling below the call
the

Of

14

price. Mentioning those for the
record, they are Pennsylvania; At¬
chison; Union Pacific; C. & O.;
Great
ern;

Northern; Norfolk & West¬

[Louisville Nashville; Chicago,

Burlington & Quincy; Reading;
Pittsburgh
and
Duluth, Missabe &
Iron Range; Elgin, Joliet & East¬
Texas

Pacific;

Lake

I

Erie;

and Virginian.

ern,

bonds;

continues.

are

is wait

do

for

I

1.5

.1

icit.

The rail fixed

yield to attract that kind of buy¬
ing.
During this period these
good railroads have reduced their
fixed charges from $158 millions
to $118 million.
The borderline

■'

They never operated at a deficit.

the

further

a

remember one

to

The worst year we ever

patriotic motive
bonds
think that there will

I

you

Deficits

thing about the railroad industry:

corporate yields. In some of the
railroads, there is still sufficient

&

,

over,

Rail Operating

want

I

.

for investing in government

<.'V

j,:

that

Now

That is a total reduction in
charges of 50%.

No

twenty-four hours.

dous every

'

■

money

becomes

investment

•

.

I

of

amount

the

for

'.A

.

opinion,

my

further refunding these
whether it's utilities or rails or
anything else. Constantly, there good credit railroads will have
reduced their fixed charges from
become less and less amounts of
corporate securities to invest in. $158 to $107 million; the border¬
lines from $190 to $130 million;
There are two ways .to make
the bankrupt carriers from $176 to
through

.*

■:

in

Therefore,

(Continued from page 1135)

/£

'

trying

am

to

cover

this af¬

ternoon all the railroads in which
most

people

have

any

interest.

first

that

In

selling in the
low 70's. I choose the Lehigh Val¬

of 14, every
the

group

of the bonds is selling at

one

price on a 3% basis, or on
basis. They are for insti¬

call

2.90

a

tutions.

I

Prospects

Stock

Rail

recommend

never

con¬

a

audience. For

trolled stock to any

example,
I
never
recommend
Texas Pacific, because it is con¬

somebody else. .Read¬
ing is controlled by B. & O.
Eliminating those controlled situ¬
ations, it leaves us seven stocks.
Among those seven stocks, in my
opinion, the
cheapest stock is
the C. & O., particularly if this
merger
goes
through,
because
those

under

& O. picks

C.

terms

tremendous leverage which
it never had before.
C, & O. is
known as a stable stock. It doesn't
a

go

up

much, it doesn't go down

much.

mendous

deal

C.

the

the

with

&

be intro¬
if that

stock

O.

tre¬

through.

goes

Now

time,

leverage will

into

duced

first

the

For

stock

$3.50, and
dividend, the

pays

Pittston

equivalent of about $4, selling at
50; you can't get that yield in any
good industrial stock. With that

rather

is

that.

difficult

to

after

pick

You know all the stocks.

think

they will

basis.

all

from

a

to

50:

On

would,

from

mean going
Union Pacific

railroad

stock

on

a

it

Atchison

is

the

5%

90 to
only
C.

basis.

& O. would then sell pretty close
to 80.
It would mean that Great

Northern would

sell

at

would be the

same

a

on

L. & N.

way.

In the
formerly
borderline roads, they in¬
clude Southern Pacific, New York
Central, Illinois Central, South¬
ern
Railroad, Northern Pacific,

■f.4.

:•

H
if"&

■

P3RAWLEY, CATHERS & COMPANY

i.i a
■

fm

■

r]M-

;ff

CANADIAN
-

CORPORATION

about

of

the

I

or

York

there

are

the

is

Recommended

Bonds

it!" \V-

CANADIAN

BANK

OF

COMMERCE

BUILDING

TORONTO

D.

dividend

Morris

&

I

recommend

Essex

4V2's

Ml
if

stock which sells around 31.
B.&O. is our fourth
ed

to

about

height.
bought in

&

one

will

railroad

They

now

from

appear

paying

are

no

railroad.

the

after

share
of

earned

they

year

$10

around
profits

excess

a

taxes,

share. In that group
particular favorite.
Following that is Southern Pa¬
cific. After this refunding South¬
$38.00

AX

is

a

my

Pacific's debt will have been

ern

reduced

they

go

and

about

on

to refund the other
will eventually, I

they

bonds,

35%,

by

think, get it down to 50%.
I

basis

that

see

Pacific

Southern

dividend

$4

reason

no

can't

as

On
why

remain

with
carry-over
of
payer,

a

a

tre¬

excess

profits to absorb the loss in gross
as inevitably must come with the

ending of the Jap war.
In that group my next choice
is Northern Pacific, with some¬
what of a question mark, because
their financing comes up Septem¬
ber

assume it will be suc¬
If it is successful, I think

6, and I

cessful.

Pacific will sell, within

Northern
six

months, or eight months, with
Great Northern, where it always
used

to

sell.

Great
their
in

Northern

fixed

doing

so

has

reduced

charges by 50%, but
they diluted the stock.

If this Northern Pacific

financing
successful, they will have re¬
duced their
fixed
charges—you
know they
are
retiring 6's—by
is

spe¬

about 30% but with

no

dilution of

them, and re¬
charges to 25 million
They are now in bank¬
ruptcy under Chapter 15 of the
Bankruptcy Act, commonly known
as the "McLaughlin Act."
They proposed a plan to the
dollars.

Commission

reduces
now

the

exist¬

ing 25 million, down to 16 million
the difference between

being

16 and 25

represented

by contingent
income
charges.
The plan has
been approved by the ICC unani¬

mously,

Therefore, we get in the last
group,
the
bankrupt
carriers,
which has always been my partic¬
ular
field.
They are in bank¬
ruptcy, so they have no fear of
bankruptcy, as we did in the bor¬
derlines at

case,

and

under the

*

and

-

one

time.

The B. & O. Bonds

Without

court

no

dence

in

Supreme

the St. Paul
interfere with

can

decision unless it

taken

to

the

sufficient

or

be

can

court

that

weight

The B.&O. plan comes before
the court for hearing on Septem¬
ber

17,

it

and

will

court

will

the

in

my

approve

become

should

be

out

of

end

opinion the
the plan and

effective.

of

They

bankruptcy by

the year.

The B.&O.,

therefore will have reduced their
fixed charges from 34 million to
16 million, a reduction of 50%.

The
had

worst

the

year

in

was

B.&O.

ever

1938, when they earned

about 19 million dollars.

In every

other year, however, they earned
over
30 million dollars. For ex¬

ample, in 1942—it doesn't mean
much, because it was a war year
—they earned 76 million dollars,
and last year around 50 million.
But in a typical year, as I see it,
in the future, with normal tax of
50%, and no excess profits tax,
the

B.&O.

can

million

35

earn

dollars.
That is step No. 1; that is, get¬
ting the war money to buy bonds,
which they did.
The next was
to get the
fixed charges down
where
they
were
bankruptcy
proof,
which they
have
done
through this plan. What is. the
third step?
Every B.&O. bond,
with minor exceptions, is callable.
We are certainly going to have
low money rates for a long time,
long enough certainly for all the
That will be the next step.

hesitation,
the
cheapest bond, in my opinion, and
the
ones
with the best
timing,
any

Their

is 5%. If the
B.&O. refunds as 3's, their overall
charges will be reduced to 16 mil¬
average coupon now

lion from 34 million dollars.

Obviously, that is going to have
effect on the stock, the same

some

it

as

the

decision

ICC

an

and

did

D.&H.,.Nickel Plate

on

all the

In my

them.

rest of

opinion, when that happens, and
if it happens, the preferred stock
will sell up in the high 60's, the
same

Railroad

Southern

as

pre¬

ferred

now

stock,

even

sells, and the common
before it goes back on

dividend

basis, should sell be¬

all

McLeod.Yoimg,Weir & Company

Therefore, among this group the
B.&O., I think, for those reasons,
is the

the

Canadian Securities
are

_

overtime

all

these

CANADIAN

''*J£v
#>.;

★

$18 a share on

was

SECURITIES

securities
with¬

issued

when

the counter. Almost

are over

%

the

"When Issued Securities"

in all

Invited

★

again,

On the when issued securities-

'

*-

it

B.&O. last year.

ACTIVE DEALERS

i?

Just to
EPT plus

cheapest situation.

mention

H

out

exception, all of these income
thai are being created are
bonds than the fixed ob¬
ligations of Great Northern or
bonds

★

better

v
«

f

Private Wire Connections to New York and Montreal
■

■m
-r;

it

Southern Pacific
take

IDLANB
*

HI

M

Securities
I T

E D

to

HURON & ERIE BLDG.

TORONTO, ONT.

LONDON, ONT.

ADELAIDE 1385

METCALF 4500

n

before
were

MONTREAL

OTTAWA

HAMILTON

LONDON

NEW YORK

7«

J




the

for

will

market

to

incomes

this

101%.

market

broke

Series
;

B

they

The cheapest income

bond traded today is the

:-

3.

It

L.&N.

or

time

you
in 1942 when
were
46
that
they were going to par. They are
today at 94. Erie's were 43, and

TORONTO
DOMINION BANK BLDG.

said

Wabash

.

Elgin 0161
fcf

some

recognize that.
I

Metropolitan Building

*

!i

which

fixed charges from the

railroads to refund their debt.

the stock.

*•;,

ii

<

dol¬

given to such evidence.

LIMITED

; 1

open

tween 25 and 40.

Your inquiries on

\v

million
in the

They have no callable bonds. Last

I.*!

i

thev

there has not been sufficient evi¬

are

1*1

*

100

over

worth -of bonds

lars

at

war

market and retired

a

'

million dollars

During the

t.'-S

■

34

the

The

largest rail
charges amount¬

road. Their fixed

demonstrated

5's*
which are now a direct obligation
of the D. L. & W.; and the Lehigh

f

is

bonds, and they also retired mil¬
lions of preferred stock of another
railroad which they guaranteed.

Stocks

are

actually

Specifically; the B.&O. 4y2 of 60
which
closed
yesterday around
64 y2,
the common stock which
sells around 20, and the
preferred

Court

Texas, Lehigh Valley and
L. & W. Out of that group, the
that

are

simply passing on to
you the L. & N. dividend. Coast
Line has retired all its callable
They

&

bonds

V: ^

is

paying $4.1 think the dividends
the

entire
industry now—there are
only three choices: Missouri, Kan¬
sas

N., I think, is

year.

In that entire group of border¬
line bonds—and I am covering the

V, v%'

L.

next

selling

three

and

behind

from

situations, the M. K. & T.,
the Lehigh Valley and D. L. & W.

$

N.

selling at
share of
each share of

Line

58. In effect you
are
paying about $6 a share for
the Atlantic Coast Line. The stock

Central,

are

is

There

Coast

selling around

three bonds of the Il¬

Central, which
in the high 80's.

fa¬

64.

Line.

Coast

Line, Nickel Plate,

New

&

L.

cial

* i.

;,

In stocks of that group, my

vorite is the Atlantic Coast Line.

Atlantic

those that

among

sued; are the B.&0. obligation

duced their

prices.

er

Marquette, D. & H., Boston
Baine, D. L. & W., L. V., and M.
K. T.
Among that group all the

Then

BONDS

ty1;

•

,

they should command much high¬

Pere

and two

'i4

'v'i
,.

which

linois

GOVERNMENT- MUNICIPAL

•

13,

Atlantic Coast

tions

■ti
,?

of

that somewhere along the line

so

bonds are selling at par with the
exception of three or four obliga¬

.aJ

•

higher than 50. The Katie has re¬
duced its fixed debt about 40%,
and I think will continue to do so,

mendous

80,

5% yield, with a $4 basis.

where you would

get income bonds, and they would
not sell at 50, they would sell

I

5%

Pennsylvania, for ex¬
that would mean going

35

120.

to

go

On

ample,

group
called

Ifl

Laughlin Act,

added

leverage, in that group my
preference would be C. & O.
It

are

ley bonds on the theory that the
worst that can happen is the Mc¬

trolled by

up

bonds

Essex

So much for that group.

iKfel

v ■

Thursday, September 6.1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

1136

income 4^s,

(Continued

on

St. Paul

which are

page

1137)

THE COMMERCIAL &
FINANCIAL CHRONICLE

-Number 4418

yolume 162

Bond Club of Denver

Railroads in Peacetime
Defaulted Bonds

(Continued from page 1136)
80, and which
two years back interest. So

carry

about

at

selling

Among the defaulted bonds, the
old

bonds^as

they are selling at the equivalent
of 71. I predict to you that within

would

a

year after the St. Paul is reor¬
ganized, those bonds will be sell¬

curities

ing at par.

as

the

bonds is Rock Island, In¬

4V2s, which are selling at
with 9 points accumulation,
or the equivalent of 85.
The Rock
Island is an 8,000-mile railroad,
come

ket, if
ate

the

about

example,

same

L.

as

&

N.

The

ICC,

allowed them only 29 million dol¬

ing

of the first mortgage

worth

lars

the

about

does

The

basis.

2.80

a

Rock

same

the L. & N. carries

a

se¬

without

you

in

can

some

mar¬

way

the

cash

of

$102

cash.

7:

Let's

gross, but
debt of 267

I

as

in

that

believe

you

Rock

Island com¬
stocks in the future will sell

mon

million dollars.' Rock Island first

you

$175

'

assume

do, that

is

50 million.

selling
64

the

and

par,

would

for

this

is

common

those

recommended

you

value

million, and the

of

If all the bonds

at

I

V2,

17

value

were

bonds

closed

have

at

market

a

$1,325,000,000

cor¬

poration of about $630,000,000, or
less than
:

half of the

Conclusion

;

.

To

asset

conclude,

value.
i

,

:

I

have
always
found that if you are in an un¬
popular situation in the securities

the crowd

that

months

reorganization.

mortgage bonds, and- par for the

never

The total debt of Rock Island is

income bonds and 80 for the pre¬
ferred, and after consummation or

the past, you know my comments

after

the

than

less

$100 millions, and yet
still buy the Rock Island

income bonds at the
85.

There
bonds

trade

shortly

other

without

of

105

thereafter,

for

you

If

those

you

first

the

prices

are realized, and you sell the first
mortgage bonds, the income bonds
and the preferred, you will
get

equivalent of

traded: Frisco

now

which

three

are

prices

use

can

cheap?

income

back

incomes,

tions, at 82; the Denver incomes,
the lowest-priced income
bonds,
which sell at 72, with three
years
accumulation, which is the equi¬
valent of 58^2; and the Seaboard
incomes; which sell at 70, with

gives

5% shares of

you

stock.

common

So

through that process,
you would have made $30 in cash,
and have 5%

shares of the

stock

common

of

new

Rock

Island,
which would cost you nothing.
no,
accumulations.
Those
five You can do the same thing, if you
bonds all trade over the
counter, are more conservative, by creat¬
and in my
opinibn within six ing the preferred for nothing, or
months after their reorganization the first
mortgage bonds, or the
1 ncome bonds by
they will sell close to par.
selling the other
three, and in each case receive
Preferred Stocks

The

cash.

cheapest

only 150,000

are

shares outstanding, and it has the
greatest leverage. In other words,
I predict
means

a

a

year like 1941, which
decrease in gross of

about 50 % from present
levels,
that Seaboard preferred stock will
sho.w

substantial

earnings
per
Incidentally, that stock

share.

sold as high as 80 this
year, and
because they moved the date of
the

plan

up

that

so

the

money

went
to
the
old
bond holders
rather than to the
new, it went
down 20 points. '•
<

My

other

choice

in

the

ferreds in that group that
now
trading when issued

pre-

we are

but

is

the

which

carries $10 accu¬
the equivalent of 62.
Rock Island
preferred" is just as
good a preferred as
Atchison pre¬

mulation,

or

ferred, and

will demonstrate

I think within six
months after its reor¬
ganization.
or

seven

Among the
mons which

when

we

are

jyheri
issued, the
hink

particularly

•nock

Island

which

com-

trading
which I

one
stands

out

common

is selling around

txlu

is

run

olders.

I

of

bonds is the

don't
the

will

mean

public
I

be

ning the Rock

mean

any

position to this plan. I think we
get the approval from the
ICC within two weeks, and we
will
then
start
trading "when
issued" in the new income bonds,
will

and the

new

Gulf Mobile & Ohio

stocks.

The

Alton

ganization

we

the

income

Mobile

&

some

choice.

That

is

I think

second

my

it will become

least

I

$40

share.

a

;

*

•

.

about the rating system.
I have
always said that the ratings fol¬
prices, and therefore are of

little

not

going to bother you
details, but to add two
defaulted bonds, the next

am

value

in

predicting the fu¬

ture.

Chicago Northwest

in

als

1930

gener¬

selling at 95 as
4's.
They were triple A.
When
they sold at 10, they were C.
Where

were

the

was

value?

The

val¬

at the

10, not at par. But
followed the prices
down.
Do you know what they
are rated now?
Single A, as 3's,
at
104.
In
other words,
high
prices
don't
necessarily
mean
ue

was

the

ratings

high grade.

>

t.

viously be that low prices cannot
necessarily mean low grade.
Another thing is that informa¬
tion is not judgment. When Nickel
Plate

notes

up

words, all the facts and
to a point are only in¬

formation.
mation

think,
is it

I have

as

much infor¬

which

selling at about

are

55.

V

\

To go

just

back to the B. & O. for

second, we happened to be

a

you

value at

a

discount, and

I still think it exists in rails rela¬

tive to your choice in industrials
and in utilities. The yield is there,

in

great many cases the market
appreciation is still there. It -is
a

forecast.

Whajt is investment?

If you constantly invest in

run¬

It has

most severe

have

had.

the
re-

Even

time?: next

grade bonds, corporate bonds, at

+

3 s^are> on tbe




new

portunity of creating a reserve. If
you buy value at a discount and
your judgment is correct, you can
be wrong once in a while and still5
have a reserve for those mistakes.

On this occasion, and on the
others, I have tried to bring you
the benefits of my experience and

what

information

I

have

about

the

rails, and to give you my fore¬
casts, which I have done this after¬
noon.

I

am

sociation
talk

on

pleased that the As¬

chose

to

have

me

again

rails.

unless you

That is all you
securities market. No matter what

business you are in, whether you
are in municipals or rails or gov¬
ernments, you are predicting the
future every time you buy a bond

stock.

If

it

was

purely based
it

wouldn't

thing, because
formation

EARL M. SCANLAN & CO.

in¬
a

top of your in¬
arrive at a

on

must

you

and

judgment,

on

mean

your

judgment

from the information, plus

your

DENVER

We maintain active markets in the securities of:

Colorado

Educational Committee Report
(Continued from page 1083)
requisites as to previous education
or
experience should be estab¬
Also

lished.

that

a

suitable

tificate

signifying that
successfully
completed
should

course

be

cer¬

one

such

has
a

established.

It is my
gram

and close to 60
10llars in cash* The Rock
* year t)aid excess
J™a
overtime equiva-

high-

the call price or above, you must
be 100% because you have no op¬

Ideal Cement Company

anything

creditors

G. Longwell

bonds, I
but what good
forecast with it?
fellows do in the

experience; to produce some
knowledge of a subject, so that
you may convince yourself and
then your client that things are
going to happen. That is the way
capital appreciation has always
been made, whether it was in the
pioneering days or now.
I have always tried "to point out

1950

E.

railroad

about

more

1936, which are currently sell¬
ing at 62, and the Frisco 4's at

Mullen

as any man;

comes

of

to

to

In other

figures

J.

Stone, Moore & Co.; Vice-President: J. H.
Myers, Harris, Upham & Co.; Secretary: Robert D. Mannix, Earl M.
Scanlan & Co.; Treasurer: Phillip J. Clark, Amos C. Sudler & Co.;
Directors: John T. Webb, Otis & Co.; Bryan E. Simpson, B. E. Simp¬
son & Co.; John J.
Mullen, Garrett-Bromfield & Co.; and Elmer G.
Longwell, Boettcher & Co.

selling at $10
what I try to call "value at a
apiece, which they did, what you
discount." The corollary is cre¬
wanted to know, then, was what
ating something for nothing—to
were they worth? You wanted to
my mind there is very little dif¬
have somebody tell you that they
ference between investment and
were going to pay them off three
speculation. Webster defines spec¬
or
four years from now, which
ulation as an enlightened attempt
they did.
were

with the

choices would be -the Denver 4's

John

Bryan E. Simpson

President: Ernest Stone,

•

.

The corollary to that must ob¬

formation

.

From

low

or

a

great trunk line system. I think
it eventually should sell at at

blood

in

50,milllon,

stock

Gulf

The
71/4 shares of stock would cost you

ne-n .working capital of

over

+

the

Stock closed yesterday at 23.

year

mnu

Ipni

of

Ohio,

which in my
opinion will sell at par six months
after they are issued.
In addi¬
tion, you get 7% shares of stock.

I don't think

*

lS^n
Drnfi?

bond

are today
You get a

quality.

ex-

wrSo?aying out 34 million dollars
Pn!«
cash,: which they are
ihi\g f?. do within 20 or 25 days,
1 ;^ wjU still start the new corn

3's

selling at about $500.

34, 35.

-at

or

Island.

verage, it is the

wuu

Chicago Alton 3's. As
knowt there is no op¬

most of you

$500

established

and for the stock-

that, but

ere

new.

My second choice in defaulted

.

stock

opinion the Rock Island

pense

hke

new

issued
now

different, as you
arbitrage. Right

the old and sell the

this,

marketwise,

an

now

Island, which is selling at nothing.

72

is

the arbitrage*^ Rock Island
is about 12%. That is, if yOu buy

we

ing at 60. There

That

know, from

preferred stock
have created through
any
of these reorganizations is Sea¬
board 5% preferred, which is sell¬

that

But in any event, in Wall
Street, what the crowd wants has

The

addition, however, that bond

John T. Webb

Phillip J. Clark

them.

$495.

In

accumula¬

Myers

running with this stock

create

How

H.

stock

with

stock

J.

or
that group of
stocks, and if you are very clever
perhaps you can make money on
or

bonds are callable at
They will be called and re¬
funded probably as 3's within six

that

E. Stone

better than if you run with the
crowd all the time. You have seen

105.

Atchison.

Ernest

market, and you have sufficient
patience, you usually make out

mortgage

you can

v,

market

you

$640,

•■)'.

■.

preferred

:

which

,-

Island

is

that

cre¬

month, and in¬

a

000 bond which cost you
will
get back
around

think the L. & N.
bonds selling on

we

I

recom¬

cluding
the
cash
accruals
for
these two years, if you hold that
.bond until consummation, the $1

plates for that amount of money.

Obviously,

highly,

will get within

4%
bonds
on
an
8,000-mile
railroad.
You can't buy the tie

bonds are good

most

them,

new

something for nothing, you
are
accomplishing something for
yourself.
Today,
for
example,
Rock Island,
refunding 4's of 34,
are
selling at about 64. Includ¬

for

gross,

Island

Whatever you think of the

94,

does

Rock

recommending the old securities
being the ones with the larg¬
est leverage.

The second choice in the when

issued

we call
inconsistent to

be

mend

reading in the Journal of Com¬
yesterday that the B. & O.
our
seventh largest industrial
corporation, with assets of $1,325,000,000, has a debt of $571,000,000. The market value of the
merce

our

belief that such a pro¬
is necessary to bring new
into the trading phase of

business.

offered
an

under

I

believe

the

course

Educational Chairman in each
in

doing

each

the

would

be

quite successful.

Mountain

These latter points are for you

to

gentlemen

It has been

the

with

I

and

discuss

and

a

draw

Public

Officers

of

the

to

be

my

and Telegraph

Company

Golden

NSTA

Company of Colorado

States Potash Company

Cycle

Corporation

that I cannot

report completion of what I be¬
lieve

Service

United

pleasure to work

only regret

States Telephone

California Electric Power Company

conclusions therefrom.

some

Company of America

Denver Tramway Corporation

Amos C- Sudler & Co.

assignment.

Investment Bankers

.

supervision of

local affiliate and with
ist

a

leading the accompanying discus¬
sion

Milling and Elevator Company

Potash

a

Respectfully

First National Bank Bldg.* KEystone OlOl

Submitted,

snecial-

particular subdivision
actual" lecturing, and

Paul

I.

Denver

Moreland, Chairman,

Educational Committee; ;;

r

t* i:

..

.

Specialists Rocky Mountain Region Securities

•

i

CHRONICLE

THE COMMERCIAL & FINANCIAL

1138

in drilling equip¬

also been made

Wartime

coal

"

impressive in volume, it does not
that

follow

potential

the

of

all

of coal is
recoverable at the present state
of^the art or of sufficient quality
to'be commercially usable.
The
United. States
Coal Commission
trillion

3.2

and

tons

net

Xhp United States Bureau of

Mines have estimated that shrink¬

"

probably had

•-*

a

more

,

-

discarded
of

cause

in grading, or lost be¬
uneconomic geological

tion amounted to 443 million tons,
to

rose

million

tons

fol¬

the

lowing year, and in 1917 advanced

Possibly 2
trillion tons of the estimated coal

to

marketable

resertfes

in

ton.

country may be

this

552

of

Bituminous

Production

The economic history of coal is
one

of

contradictions.

seeming

its fundamental import¬
ance
to
industry, coal had lost
ground for several years prior to
the period of expanding business
activity induced by the War.
In
fact, many individual mines op¬
erated at a loss throughout most
of the decade of the 30's. Compe¬
Despite

579 million tons,

the

use

of
an

fuel

oil

and

important

natural

reason

for this

decline, although general business

an

increase

over

From 1940 to 1944,

advanced

approximately

estimated exports totaled approx¬
imately 27 million tons, an aggre¬
gate consumption of 622 million
tons.

The

depletion of
coal stockpiles

serves

down to

Operations

War

World

During these two periods, how¬
ever, the increased
output was
accomplished by radically differ¬
ing methods. In the first World
War, the expansion was achieved
through the opening of a large
number

of

mines

new

as

well

as

Bitu¬

by increased employment.

minous mines increased in number
from

5,776 in 1931 to 8,994 in 1919,
of

advance

an

demands

war

56%.

almost

As

reduced, this

were

capacity which had been
proved to be a serious
burden to the
industry, partic¬
ularly when it collided with the
aggressive competition offered by

a

the

nation's

brought

new

re¬

low of 56,-

692,000 tons, or thirty days' supply
as of January 1, 1945. This corn-

built

up

fuel

oil

In

and

the

natural

gas.

World

second

War, ex¬
panding
production
has
been
gained through further mechani¬
zation of the coal mines, an in¬
crease in the length of the work
week and by an increase in the
number of small mines.

The

num¬

ber of mines in the years

preced¬
ing our declaration of war showed
little variation with the exception
the declines noted in 1938 and

1939.

In

1941, there were 6,822
advance of 17.2% over
change
has taken
place subsequently.
•. -V

Pacific Northwest Securities

mines,

an

1939.

Little

Technical Improvements Noted
Another

dramatic

conditions

is

Municipal & Corporation Bonds

during

revealed

Substantial

mechanical
which

Sold

—-

was

the

at
——

War.

Quoted * •;

In

were

of

in

two wars
value of

fuel

consumer.

improvements have
by the introduction of

cleaning,

technique
virtually undeveloped

time

million

Private Wire to New York

change;

the

the

bituminous coal to the
been made

Investment Stocks

in

of

1942,

tons

the

first

World

estimated

an

of

a

145

bituminous

coal

mechanically cleaned,
total output of that

25%

the

Fifteen

5.3%

previously,

years

of

all

year.

coal

was

only

cleaned

Members
New
New

York stock

York

Curb

Exchange
(Associate)

1411 Fourth Avenue Bide.

120S Porter Bid?..

SEATTLE 1, WASH.

PORTLAND 4, OREGON

-for

pounds

been

in¬

example,

needed 3.22
bituminous
coal
to

of

produce

one

but in

haul

kilowatt

hour

in

this had been

1941,

of

ton

a

miles,
mile

freight

one

compared with

as

Fuel per passen¬

reduced

ger

car

18.1

pounds to 14.9 and

was

from

Increased comoustion efficiency,
according
to
estimates
in
the
trade,
saved
the
equivalent
of more than

2%
tion

Hoge Building




SEATTLE 4
Bell

Teletype—SE 362

Washington

million tons

of

in

by
as

the

war.

middle

20's,

less

than

of total underground produc¬
of bituminous was handled

mechanical loading
with 31%

compared

methods
15

years

later.

Progress has been rapid
inception of the war
production program, with loading
machines advancing from 1,573 in
since

p

100

coal

1942, as com¬
pared with 1918. While further
progress is now being retarded by
wartime shortages of labor and
steel, it is obvious that additional
progress can be made in this field
In

P,ATED

to

.

feet per ton of
In addition, two;
or
three gallons of light oil are
normally' obtained from the same;
coalr 10 to: 13 gallons of tar, and
22
to 27
pounds of ammonium
sulphate. Heat for the coke ovens
takes approximately one-half of
the gas and the remainder is gen¬
erally utilized in nearby steel
plants or distributed in city gas
cubic

10,000

carbonized.

coal

lines.

-

-

-

These by-products
importance to
the

of direct

are

thetic rubber—is derived from the

light oil.

Picric acid, used in the

manufacture

explosives,

or

in

turn, is derived from benzol. Ben¬
zol

is

also

converted

to

phenol

(carbolic. acidL vital element to
the plastic industry. vv:

Competition

,>on

source

bituminous

coal

War I.

as

a

has been con¬
reduced
since
World

Because of

greater effici¬
utilization, consumption
has
declined
sharply.
This
factor has contributed importantly
to the secular loss in tonnage, al¬
though it has strengthened the
competitive position
of coal in
existing markets.
ency

in

the

1939 to

3,225 in 1944. In the latter
than 46% of the total
underground output was loaded
mechanically. Improvements have
year,

more

substitute

markets.

resulted

in

loss

a

of

This is evidenced by the

fact

that, while coal (principally
bituminous) supplied 80% of the
country's energy requirements in
1916-20, the proportion was only
49% in 1940. In the same period,
the
proportion supplied by oil
almost tripled, to 30%
in 1940.
War factors have temporarily re¬
versed

this

trend.

One advantage held by soft coal
over

competing fuels

that

known

is

in

oil

wide

burning
pres

will

/concentration
of
oil
producers on the more
profitable ;• gasolind. c; Evidence of
.

this

is

the.

>

in the

seen

trend

toward

installationof„? equipment

capable of burning either oil or
as the price and
supply situ¬

coal

ation
'

dictate.

While

.

tor

of

;

:

natural

;

'

....

•:

less important
competi¬
coal
than - petroleum

a

gas

has

.

made

-

•

progress since the early

though

;

installation

somewhat

notable

1920s, al¬

costs

are

higher, and

natural gas
average, costs more than coal!

on

However,

the average price of
natural gas declined between
1932
and 1944, while that of other fuels
has increased.
In
tural gas

has

addition, na¬
high heat delivery

a

efficiency and is easier
The

has

war

to handle.

tremendously stim¬

ulated the development of this
industry, particularly its industrial
load, which- accounted for over
half
in

of total natural
1943

and

volume
Substantial

gas

1944.

v

gains in residential sales are an¬
ticipated after the war. Territorial
expansion into new markets will
be

encouraged

construction

by

of

the

wartime

pipe lines,
competitive gains are
likely in the future.
new

Increasing
has meant

sale

of ^electricity

records in the

new

con¬

sumption of coal for its production,
despite
the
growth
in
hydro¬
electric facilities.
the

latter

in

However, since
fully utilized even
demand,

are

periods of

their

minimum

construction

represents

a

permanent loss for coal.

Capacity

in¬

of- power

siderably

shortages

wartime gains should be
retained
in view of the possible
rise in oil
prices and limited supplies of
fuel
oil
resulting from

'

The relative dependence of

dustry

of

competing fuel

effort.

war

oil

reflected

conversion

and further

Benzol, our only source of styrene
—important constituent of syn¬

enormous

were made in by-product
coking and in the iron and steel
industry.

after the

O

\

„

permanent

ities,

bituminous

NCOftP

■

substantial

also

savings

I

' '

Another by-product of coal car¬
bonization is gas, which amounts

has

111 tons in 1941.

GRANDER CO.

'

year-

advantages

has

as
the result of progress
mechanical cleaning and com¬
bustion efficiency.
Electric util¬

to

and INVESTMENT STOCKS

compared with. 48'million tons in
1930. \ The v 1945 production goal
is approximately the same as last

in

value

thousand

MUNICIPAL, CORPORATION BONDS

ing. Output, naturally governed
by. the demands, of the sfel indus¬
try, has reached new high levels,,
production for the year 1944 being
estimated "at 73,618,000
tons, as.

creased

1919,

PACIFIC NORTHWEST

small

a

addition, the development of
fuels possessing either
price, efficiency, or convenience

Fuel

reduced to 1.34 pounds. The rail¬
roads needed 164 pounds of coal

Specializing in

although

steel,

by expanded fuel

and
■

has

witnessed in the
post-war dp
nod
particularly for domestic
heating, which is in a secular up¬
trend.
Nevertheless, part of the

manufacture of

the

for

and

iron

In

mechanically.

FOSTER & MARSHALL

furnaces

amount is used for domestic heat¬

coal

strengthened

be

the United States is used in blast

Former

soft

equipment to coal. Renewed
sure from this

.

of

Bought

spread

pares

excess

same.

soft
gas

Within

Despite the record bituminous
output of 1944, consumption was
33 million tons greater, the deficit
being taken from surplus stocks.
Domestic consumption alone was
595 million tons last year, but

tition resulting from the increased

was

tons.

hnother year, the output stood at

output
Trfend

million

1915 of 30.7%.

available for productive use.

I

503

formations and other reasons, for
each

equipment for use in strip mining
being more widely adopted.

is

of

war

requirements
the latter as

"

incurred in mining, handling
anil preparation of coal amount
to approximately 35% of the total
high records.
coal mined.
This figure is gen¬
The current gain in production
erally accepted as typical for the
industry as a whole although in bears a significant resemblance to
activity
which
many
mining operations it is the pattern of
the
first
World
found that approximately half a characterized
War. In 1915, bituminous produc¬
ton of coal is consumed for power,
ages

I

position

substantially

during the

Coke and Other By-Products
with reserves of 60,079,000
Coke, outstanding by-product of
'tons at the beginning of the pre¬
definable effect.
bituminous
coal,
is
produced
For the five-year period ending
vious month,
the equivalent of
either
in
modern
retort ovens
in
1925, bituminous production thirty-six days' supply. It is likely which
capture the gases — and
averaged approximately 481 mil¬ that the 620 million tons mined
which in turn produce many val¬
in 1944 marked the culmination
lion tons, in the next four years,
uable
by-products — or beehive
of the recovery which got under
the average was more than 500
ovens from which the gases escape.
million tons, but in 1931, it fell
way in 1939 when war broke out
Beehive ovens have been brought
to
approximately 382
millions. in Europe. Since then the rise has
back^ihia-iisei because dfj the cur?
The industrial
activity of 1937 been steady each year showing
rent great demand for coke; their,
was
reflected
in the
relatively an increase over its predecessor,
operation will doubtless be largely
high output of 445 million tons, as the war need for fuel mounted.
discontinued after the war.
' • •
but it was not until 1940 that the
But the indications are that 1944
Most of the coke produced in
industry began to march to new marked the climax.
conditions

appear

reserves

ine

been

ment, in mechanical cutting, con¬
veying facilities, and mechanical
cleansing plants; and electrical

Operations and Peacetime Future
Oi the Coal Indnstiy

(Continued from page 1081)
While

Thursday, September 6,1945

jr

the

a
high
possible
during periods of generally sat¬
isfactory industrial activity, huge

Despite

level

the

of

that

fact

is

operations

of soft coal have resulted

reserves

in

an

of

excessive

almost

condition

constant

capacity. The peak
reached in 1923, when 9,331

was

bituminous mines in this country
had

estimated annual

an

capacity

of

970,000,000 tons; actual output
in that year was 565,000,000 tons.
The long-term decline in capa¬
city since 1923 reflects not only
abandonment
a

mines

of

Based

also

but

working

miners'

in

reduction

hours.

the 35-hour, five-

on

day week in effect in 1942, esti¬
mated

tons

of 580,000,000
virtual capacity
Extension of the work

production

represented

operations.

period
and

to

week,
hours

six-day

a

three

quarters

eight
daily

(including travel time), has in¬
creased capacity to a level suffi¬
cient

to

for

continued

The

fact

coal

estimated

fill

quirements for

1945
labor

bituminous

were

re¬

it not

losses.

industry is

at¬

ample
foj around a thousand years at
the present rate of consumption,
assuming a wastage factor of 35%.

tempting to avoid the tremendous
overexpansion that characterized
World War I, by increasing capa¬
city temporarily through extension

Known

of

reserves

reserves

and

anthracite,

are

adequate

of

on

for

32 and 160 years

oil, natural gas
the other hand,
only

Inroads

of

about

14,

respectively, al¬

though total reserves
less much larger.
i

are

Other

doubt¬

are

Fuels

Petroleum, the principal

com¬

petitor, has made its inroads both
directly through the substitution

the

work

week

and

establish¬

strip operations
involving
a
small
investment,
rather than by sinking new shaft
mines.
However,
once
present
abnormally high wartime demand
for coal has subsided, a condition
of excessive capacity will again
exist,
despite the reduction of
working time. This factor, par¬
ment

of low-cost

ticularly in view of the

potential
effected

of fuel oil for coal in the genera¬

increase

tion of power and

heat, and indi¬
rectly through the replacement of
coal-burning transportation equip¬
ment by trucks and diesel engines.

by bringing more mines into pro¬
duction in a period of high prices,
a
constant tnreat to
the maintenance of a satisfactory

In

nrice

the

coal

encroachment

of

oil

on

markets, the price factor has
been the prime determinant.
In
this connection, the importance of
geographical location must be em¬
phasized, because of its effect on
actual delivered costs.

which

could

be

constitutes

structure in the absence

of

Government regulation.

Geographical Divisions
The

shifted

center

of

coal

southward

(Continued

on

production
1913
1139)

between
page

paid.

Wartime Operations and Peacetime Future

It is very clear that

thorized
are

(Continued from page 1138) <^
and 1928, with mines in southern
West Virginia and eastern Ken¬
tucky gaining .tonnage at the ex¬
pense of those, in Pennsylvania,.
and Illinois.

Ohio

.

'This shift

re¬

rates*

rr'^"

V

•'

i

ai>daily basic

wage rate -of

$7;
'which- prevailed at the
expiration
of i' the union contract in
April,

favorable through: freight

more

,

1934.Thesemodificationsresulted
in

flectedtheS lower cost and superior
duality of" southern coal as well
as

fcetweeri 19.34 aridvl^41; ; In addij 95% of our mercury; over 80%
tion; the J work : week- was rediiced of our lead; over 70% of our
to 5;days in
October, 1933, and .thq chromium, tungsten and zinc; 60%
work day • tb ' 7- hours in
April, of our copper and petroleum, and
;

1943.

,

in

a

progressive slackening in the
With the southern

shift.

of

rate

highly mechanized,

mines already

little more

be done to raise

can

efficiency to offset the loss of the

differential and, under nor¬
mal conditions, this will probably
wage

tend to check • relative expansion
in this section of, the industry.
.

Federal Regulation

,

,

The wasteful competition in the

industry has led to repeated at¬
tempts
to
regulate bituminous
coal

production

and

sale.

Two

agreements,

invalidated

by

retaining the
for production

travel time

cents an hour.

at

a

rate

copper in 34 years. This country
is fortunate to have sufficient re¬
serves of bituminous coal to

last,

the present rate of
for about 3,000 years.
at

r

of 66%

put per worker employed in the
mines approximating 5 Vfe tons per
day, the per ton labor cost in

35

hours

weekly,

together

other fringe increases pro¬
vided in the 1945 wage agreement,
are

expected. to raise this figure.

production,

that

hearing

was

profits
the
bituminous industry,
before deduction of
taxes, was a

whole

vast

mere

$65,000,000,

was

equalled

one

of

rations.

The profits for

concern

that
of

were

same

the

.Because of its bulk, the cost of
Supreme Court.
; •
transporting coal from mine to
In 1937, however," the! Guffey-' market,is the niost
important ele¬
Vinson .Act was passed; it was ment in its
price to consumers.
extended for two years in. 1941. Moreover, since bituminous coal

over

time it

such

one

$470,500,000.
revealed

was

at: present 40% of the coal
district is produced at a

out of 225 mines oper¬
ating thusly, 120 showed losses of

oyer 15 cents per ton. In the

119 mines with

were

profits, before taxes, of
15

cents

ton.

a

same

more

than

However,

the
certainly

important single item profits of one group are
no help to their more
Bituminous Coal Division: of the hauled
unfortunate
by railroads and supplied
Department of the Interior to es¬ almost 13% of their freight rev¬ colleagues. Spread over the 620,tablish and maintain coal
enues
in
prices
1943, ho major change in I 000,000-ton
production
of
last
This

and

measure

empowered

minimum

rates.

wage

the cost of

cover

the

regulation,

To

is the most

rates

can

be made without

vitally
industry.
One constructive development in

affecting

the

railroad

producers.

1943

the

action of

Dividing the country into 23
producing districts and 10 price
areas, regulatory authorities de¬

rescinding

of

cent

one

termined

mine

ton

a

was

minimum
the

on

a tax

levied

on

all

was

the

of

increases

between three and six cents

a

markets, certain
adjustments
for
transportation
costs were provided,
and, in addi¬
tion, a Consumers' Counsel was
set
lip
to
protect
consumers

Aug¬
23, 1943, after two short ex¬
tensions. The administrative
functions of the Bituminous Coal
Division pertinent to the war ef¬
on

ust

fort have since

been

taken

over

jointly by the Solid Fuels Admin¬
istration and the CPA.
Since prices

at maximum rather

are

than minimum
an

act

levels, the- need for

of this

type is not imme¬

diate.

However, a period of severe
competition is
likely after the
war, and the absence of
minimum
pnce controls
might well result

The rise in labor costs since
1934

has

repetition of the chaotic
Oitions that harassed
the

V?Wlug the last

con-

industry
In view

war.

these

possibilities, several bills
J1 bodying the essential features
original act and of the subwhich gained the late

tute bill

wSV?e?t#

Roosevelt's

approval

"ted in Committee during the
id., cea,C°ngress, have been introduring the current session,
i

,

passage

over.

"owever,

the

aPPears

near

term,

doubtful.

portant price reductions,

since

such

/»

the

ottuminous

?

accounts

Thus,

over

cost

the

of

rise

?osts in line with growBfL.nioni2ation
bas bac* a marked
met

ino

■

on

total costs.

tnflrreases
otahng

ng

tn

wage

$2.40 and $2.80

on

location,

ton

before

a

half

taxes

are

Bell

caught with prices allowing
small profits, or not
enough to cover expenses, is the
result

of

what

the

industry

charging when there
eral control of

was

was

Fed¬

no

ceilings.

for many years it does not
that is the way all
engaged
in
the
business
want
it
run.
Rather it denotes there are

George T. Barnet

mean

enough

in

the trade

cut

prices,

low

as

when

ernment

a

fell

back

upon

if they were be¬

even

cost,

coal

who

of

means

there

were

selling
Gov¬

no

President: H.

R.

P.

Sons

Harper &

Schlicting, fmj

& Co.; ViceGeorge Barnet, Mac-*
Arnold; Treasurer: W. L.
Bramhall & Stein; Secre¬

President:
Rae

&

Stein,

tary: David K. Jackson, Bank of

controls.

California.
Vital

and

In addition to the fact that
coal

mining is
huge.

vital industry it is
Moreover, it is really

a

also

the

of

sum

of

many

with

or

do

comes

reflected

fields

number

parts,

compete

The

overall

about through

action

regions

of

not

another.

competition
the

a

which

one

of

adjoining
competing for

certain
all

' '

\

exceeded

their

favorable

labor costs under the

contract. ;
The

new

tonnage. Consequently, if
individuals controlling sales

policies

long

:'\v

your

in

each

field

of

region

that with adjoining fields a cut in.

price does not induce
to

buy

more

a

consumer

tonnage than he

dustry when Government controls
relaxed.

are

>;

\

(Continued

on

page

1140)

•'j

NORTHWEST

COMPANY*

•

UNDERWRITERS

•

inquiries

DISTRIBUTORS

•DEALERS

•

SERVING THE

Utilities

PACIFIC NORTHWEST

now

extraordinary de¬
However, over a
long period, maintenance of prices
at levels which afford adequate
profit margins for most producers
will probably be possible only if
Federal
price controls are re¬

SINCE

1913

Municipals

as

stored

tained,

Industrials

a

rates

day, de-

were received




PACIFIC

IN

NORTHWEST

SECURITIES

and
or

successfully
main¬
alternative fuels come

under Government

regulation.

Aside from the industry's labor-

Accurate

relations problems coal must cope
with other major difficulties in
the

MARKETS MAINTAINED

Real Estates

:

opinion of
journal.

Sawards,

EXCHANGE

Trading Markets

BUILDING

SEATTLE

leading

trade

Just

about

ment, on the
was

the

strongest state¬
importance of coal

ATT SE

,f

in

made recently by Solid Fuels

substance

that

it

was

"either

coal or anarchy" in Europe/ The
widespread quoting of this state¬
ment, both in the press and on the
radio, has tended to focus public
on

the

essential

part

plays.

•

use

source

needed

the grow¬
of stories about coal as a

of chemicals and products
for the manufacture of a

multitude of items has shown how

Wiley of Wisconsin recently stated
that, as of 1944, we have ex¬
hausted

commercial

reserves

of

188

SPOKANE

''t r.V

PORTLAND

/x

TACOMA

Current Information

YAKIMA

M
luM

ABERDEEN

11

J<M
11 tip id

11

EUGENE

f

Hartley Rocers
*

In the last few years

ing

187 and SE

Retail Placement

Administrator Ickes when he said

& Company
SEATTLE 1
1411-4th Ave.

Seneca 2000

; >;

■'

\

p; ■'

Pacific Northwest

miners';

can

use, a better situation on prices
would prevail throughout the in¬

••

••

■

would settle down and realize that
in internal competition as well as

on

operating
close to the maximum prices set
by the OPA and this should be
as

-

•'

•

industry is

We invite
r!

J

Huge

Teletype—SE 168

much denends upon coal. Senator

basic

the

only,

& Company

indus- }

level, because of advances
granted by OPA to offset higher

coal

for

production

coal.

for

to be

for

as

1923

attention

High Labor Cost

Rfw?ine,
la,bor
of

existence

basis

Consequently, for coal

prevented any im¬

occurred in the natural gas

in a

oi

a

effect

mand continues.

during the present
abnormally high demand

period of

generally

the

was

in

into

the level of business activ¬

ity.
late

true

largely

Hartley Rogers

try. Moreover, the establishment
unduly sharp price ad¬ of. minimum prices In October, j
vances. Any
change in operating 1940, carried the average whole-j
sale
costs
price to the highest level
exceeding 2 cents a ton
called'for reconsideration of min¬ since February, 1937. Prices have

expired

Prices

came

PACIFIC

against

imum coal prices
previously set.
The act finally

per

Prices

ant is

were

time it

same

profit of $65,000,000

a

averages less than ten and
cents

Seattle

the

ton

weighted costs for producing coal f Although seasonal variations in
in
each
area;
minimum prices demand, labor disturbances, and
the availability of railroad cars
were set in
October, 1940, and the
first upward revision was made for transportation affect soft coal
late in 1942.
prices, the major price determin¬
:
To permit individual
producers

year

Bond Traders Club of

of

average

to maintain their

last

granted raidroads early in 1942.

prices at the

basis

rate

the ICC

OPA

one

district there

between

or

loss and,

Transportation Costs

At the

ness.

exceeded by each
number of large
corpo¬

a

At the

figure which

a

that

small

it
for

the

operations

While the profits for the indus¬
try as a whole have been very

Meager Profits

_

shown

on -average

With

.

Congressional

daily earnings received during the
month, totaled $1.65.
Overtime
payments
for
all
time
spent:
underground beyond 7 hours daily
and

petroleum

years; zinc in 19 years and

in¬
au¬

money to the minimum.

self-indictment.

limits set.

in

keep

an

be

profits of the coal industry and
single large corporations, as pre¬
sented to the Congressional com¬
mittee, clearly showed that coal
mining is not a prosperous busi¬

ip four years'; vanadium in

seven

should

comparisons

when

Yet the profits of this
industry,
so vital to our
daily life, are very
meager.' A few weeks ago at a

With average out¬

February, 1945, based

At the

to

annual rate of use for the
period
1935-39 tungsten will be exhausted

hourly wage
time, also provided for payment

such efforts failed when the NRA
and the first Guffey Coal Control
were

while

basic
for

ore.

years; lead in 12 years;

V:V -V-,

With the November,
1943, IckesAlthough .the ^ trend has; con¬ L$wis
agreement covering .Govr
tinued in subsequent years, union¬ ernpieht; operation of
.thd mihes,
ization I of
virtually the:: entire payment for travel time was rec¬
industry, together wth loss of half
ognized.;* Supplemental v wage
of the wage differential in 1933.

and the rest in 1941, has resulted

30% "of our-iron

over

prices

losing

The

;

in

crease

predecessor companies
-

and

—

ferris a hardgrove. established

drumheller. ehrlichman company,

1913,

established 1921.

v;,.«

a:
ki

THE COMMERCIAL & FINANCIAL

1140

Thursday, September 6, 1945

CHRONICLE

ft

1

xpanding Post -War Investments

Future of the Coal

'•

Industry

>Sfc

i:

(Continued from page 1073)
standard
of
living or material

'■
1

(Continued from page 1139)

■■:.:«

-

week.

•;

would

ip:

'

Jw

'0
m*.*k■

■

?*}

5$?

'

'* t!

The

There would

position.

be little difference in the

price of

that

sustain

not

,41

home

4 '

is shown on

?

Labor
far

'■: M:7

as

v' ln;i

tion

V"

thorities

has been well treated
their rate of compensa¬
fact

In

concerned.

is

for the miners to have
a
place where they may go to
work for the higher wages are
entitled

also

to

fair

a

compensation.
Admittedly the

from

post-war

7

:

are

was

production
;

I

#

the

The

offered.

mar¬

and

as

j:

'til--r;::

so

that

Continent

other

and

a year,

Coal

228,of which 50,-

weU

tries

and
was

hostilities

all

'meet

more

to
produce
mainly
for
consumption. The produc¬
tion position is such that expan¬

sion of export trade must continue
to

be

difficult

elsewhere,

before

the

middle

fact,

just

of

1940

the

as

Britain1 exported
goods
of
all
kinds valued at £ 38,000,000. Coal
amounted for £25,400,000 of those

some

In

until such time

supplies greatly increase. In the
eight
months
before
the
war

millions which shows how vital it

than sufficient to

demands.

pre-war

home

maintained

export trade had, to

As

tinued

overwhelmed in 1940,
was

coal.

surface

or

consumption
was
about
180,000,000 tons and open cast coal
has an efficiency ..roughly of 75%
of deep-minded grades, it will be
apparent that the mines have con¬

extent, been crippled by the oc¬
cupation. of Scandinavian coun¬
there

i

the

home

coal should be

is

to

regain
coal

■

A

on

cast

France

ISj'4,-

control

portunities

000,000 tons
were
exported as
cargo and as bunkers on foreigngoing ships. Up to the time that

a

in

were

hoy/ever, go where attractive op¬

000,000 tons

It

a

Roughly, production in 1944 was
190,000,000
tons
of
deep-mined
coal and 10,000,000 tons of open

,j Before
the war British
mines were producing about

•

,

parts of Western Europe.

.Csoal .Trade Conditions in England
u

time

British coal might be released to
cope
with emergency
demands

of

rate

weight,

oversea

trade.

represented

In

three-

mines in Britain had been

fourths of export trade.
Like in the United States

ing

present position of the coal indus-

much

as

as

Risk Taking

The

answer

produc5,000,000 tons per

have "become of

the

As

conditions

now

stand, there

should be after the War

broad¬

a

of the field of pecuniary
investment.
Wealth
is
mo r e
widely
distributed
among
the
general population than ever be¬
fore. Private savings have never
reached the high level of the pres¬

ening

■v..
w

and more
eagerness to "get up in the world"
than ever before, but he wants
opportunities to place his savings
in profit-making enterprises.
In
other words, he wants to
be a
capitalist as well as a worker.
There is no better way of break¬
ing down the alleged class dis¬

telligence,

tinction

skill

more

the wage earner

between

and other classes of society than
that of giving the wage earner

In this movement, the security
and security dealer

should
important role. It is his
primary function to direct the
flow
of
capital into: profitable
play

an

channels.

He, in this respect, may

perform
an

duties.

two

he

If

acts

a

an

as

may

gainful

advisor

counselor

and

have professional

Member

v:-f
!%
!.i

Los

Angeles Stock

stand¬

LOS ANGELES

:.

an

as

broker

a

investment advisor.

or

But his

responsibilities in any of these
capacities should not be extended

Exchange

TURNER-POINDEXTER

merchant,

mere

as

U

&

CO.

to

the point

where he should

lieve his client of the
his

14, CALIF.

ment

re¬

exercise of

intelligence and

own

much
at

acumen,

Great

the

rate

an

ifs

Southern California

■

4W
■

i

i

vV<

u

\

'

*

Underwriters

•

\

'

'

—

be

fc' S

v

-

A

V-'

Distributors

,
.

If
tions

following

Wagenseller 8 Durst, Inc.

;

,v
t

626 SO.
■

I

revival

a

50,000,000
and

tons

enter¬

of

export

—

between

production,

pre-war

bringing prices to

Market

REDLANDS

Quotations and Information




on

economy

secured by a better
as

a

a

level that

■

only

can

a

of

be

per man,

increased

cut

in

costs

be

surmise

may

developed

that

new

war

to

the

recall

investment

wide

in the

duced

as

outright the obligations or shares
of a few concerns. The Scottish
and British investment trusts

designed, in most
tutions
thrift

motive

.

that

were

an

In addition to the expansion

well

of

regulated investment trusts,
also look for a renewal

one may

expansion of real estate invest¬
procedures. This
safely accomplished
on a large scale, without unsound
practices and ruinous results, if
carefully managed and supervised
or

ment under new

also might be

ex¬

under

policy of

a

of commitments.

A"

the last

Revive?

and
diversification

restrictions,

proper

under

definitely.

estate

'

scandals

the

What of Real Estate Investment?

Will the Investment Trust Mania

'

same

spec¬

ample.
Some new forms may
again come up to attract the pop¬
ulace, though what they may be

/'

the

prevailed here after
war, there would not have

occurred

participation
certifi¬
cates, and other similar contrived

cannot now be foretold

diversifying!

of

hazards. / If

connected with so- many of them,

securities

as

channel

had

the last

mortgage

investment instruments

promote savings and
people of moderate
by affording them a
con-1

investment

on

One has only

American

to

venient

then,

were

cases, as insti¬

among

means

popularity of
newly intro¬

trusts,

large part of his capital
might occur, if he acquired
very

there will

forms of

ulative investments.

mortgage
war

The evils of real
investment after

need not occur again,

and although there is a serious
take, as. an example as
risk in all real estate ventures
well as a'warning, the investment
(as in all business)j a sound di¬
trust mania of the boom days of
versification with

'Let

us

.

the

Twenties.

Investment

introduced

were

proper

trusts

were

peanuts at a circus.
a veritable
"Wall

hash"

served every day,
everywhere.
Almost every com¬
munity had its own local invest¬

ment; trusts,
moted

fostered and pro¬
by local financiers and pro¬

moters:

i

" ■v;;-,

cen-

.

Foreign Investments

became

Street

for

institutions

'

Foreign investments, despite the
unfavorable
experience in this
field in the period of the last war,
may be expected again to find a
market among American invest¬
ors.!;: Theoretically, if we are to
remain a creditor nation, there i
no escape from it.* But this field
of investment, as shown by
BrlJ^

marketed by salesmen

like

They

guidance as

investment

tiiries.

con¬

mostly in small denomina¬

cerns

]udg-

to values
will serve as a safeguard against
speculation excesses.
It should
not be forgotten that real estate
investments have been and will
continue to be the mainstay ot

a

The "shares" of these

ment.

tions

on

and

ment

large scale
at the height of the stock market;
boom. They soon became popular
as an
instrument of speculation,
though many, people purchased
them for outright, and what was
then believed to be, sound invest¬

Although

they did not
important
until
about
1925, according to the late Frank
A. Vanderlip, "in six'
yeairs some

ish

become

experience,
and

skill

most

business

which

were

States

should not

securities offered."

tributed

intensified

change
a

The

new

Labor

Govern¬

by several New York

early

as

or

an invest¬
corporation or similar
organization which involves fea¬

management of

tures that

do

terests

there will be any tampering with

Exchange.".

wages for some years.

~

'
yr-<yi

1924 adopted

member in the forma¬

a

policies * have become so
up with the future of the
industry that it is unlikely that

mixed

as

resolution stating "that partici¬

pation by

may

be

mental

of

not

the

protect the in¬

investors

held to be
to

the

an

therein

act

interests

detri¬
of

the

>
;
;
Yet with all the unpleasantness
5

dis¬

have been

public as in^es'
ments, but instead should ha
been carried by capitalists or
j

was

Exchange concerns, and,
because of the questionable char¬
acter of a few1 of these, the Ex¬

ment trust

shippers
competitive posi¬
among

The fever

Stock

tion

concern

floated in the

months of 1929 alone saw
$2,400,000,000 worth of investment trust

other than wages by other means.

tion.

Securities

last

^1US^
av°id the risk of losing all
or a

condi¬

the basis of what happened
we

There is

ment's

CLAREMONT
All California

or

that any

so

yield

result

at the post-war

Members: Los Angeles Stock
Exchange

PASADENA

cost

mechanization,

14

68

wage

largely

TRINITY 5761

ANGELES

Teletype: LA

K

I*.
•? t

!

SPRING ST.
LOS

•ifr
t

of

be

can

guaranteed until 1949

Investment Securities
:

considerably

very

hope

recovered.

■

•

in

will enable export markets to be
The miners' wages are

1

the

the

nf

n

^

and

" M;
>. If
if

look back to

we

'

requires the ut¬
acumen,
and should not be; conduct*
hv
markets.
those who are not equipped w
600
investment trusts were or¬
Two
big
enter
problems
face
the ganized in the United
upon it or who nave no
States, and
British coal industry today. There their
After the m
aggregate assets
involved proper guidance.
is that of bridging the gap—al¬
$5,000,000,000.
The
first
six war, many of the foreign ■loan
tained

present

1

•

increased

most

'if

i:'l\

of 54,000,000 tons

Production will have to

before' any

fM':

•

is

causing
National output is
185,000,000 tons of

of

average

1934-38.

,

Britain

concern.

deep-mined and exports are about
6,000,000 tons a year as against

A

lucrative "nest

%?f^°r|
J5f wf™ l*!

Vh

invest-

egg" to accumulate to the extent
of assuring both a better living
standard and as a pension when
earning capacity is reduced or
ceases
altogether.
An old age
pension on a subsistence basis is
poor
consolation for an am¬
bitious person who seeks through¬
out his whole career to enjoy the
better things of life.

much

in

try

as a

ac¬

thrift encouragement,

I

holdings

investment trust

an

beneficial interest in a
of securities. The selec¬

a

of moderate means can j
longer look to the income or

intermediary in the distri¬

whether he acts in the capacity of

$

of retirement.

his

an

for

tion, of course, was made by
skilled bankers or financiers, who
fathered the project, frequently as

market after the last war, as well
as
to
oil
royalties, guaranteed

Role of Security Trader

trader

shares of

quired
variety

one

in value of

therefore,

diversification

was,

of

An individual
purchasing the obligations or the

his savings

increase

was

the small investor.

and an oppor¬
tunity to provide for income in
old age or because of possible re¬
duced earning capacity or as a

no

It

instrument

who looks to material betterment

from

and small

professional groups the
opportunity to seek to participate
in
the
profits of business and
other
similar income producing
undertakings. This is a form 01
profit sharing under the capital¬
istic system.
But profit sharing
should imply risk taking and pos¬
sible losses as well as gains.

countries.

existing

high grade securities
encouraging to one

very

Any

He should be educated for his task,

A?

not

means

"common

ing, but he cannot be held re¬
sponsible for the acts of his clients.

Stocks—Bonds

>*r

medium and

is

as

of

The present and prospec¬

war.

development in
introduced
a means of scattering the
risk
carrying investments in foreign

Scotland, when it

funds after

tive low interest rates on

man" is

The

time.

he

M*

demand

for the investment of

no

••

:-VC

ceived its greatest

undoubtedly be a
for broader opportunities
will

There

longer the "poor man". He is
not only endowed with more in¬

ent

acts

1

„

the

become effete and senile.

enterprises, he performs the serv¬
ice of a, mercha.ii t.' But if hp also

V.'S

.

age" but it will

bution of the ownership of

f >•'

?.u

questions

customer in the

the political phi¬
losophy that we shall follow. If
"statism" and bureaucratic piaternalism prevails, as is threatened
should he be required, to assume investment ' institution, and has
in
England and other leading
the function of an investment ad¬ served a useful purpose. It
orig¬
European countries, it will merely
inated on the European continent
mean
that the old spirit of in¬ visor,,,;.;after the Napoleonic Wars, but re¬
dividual
enterprise, which has
Effect of Low interest Rates

as

•j'-Ay

;

be Stifled?

these

to

will depend on

surplus,

will be competitive

gin iof profit-on
improved.

'

same

export

and further afield markets

days
and coal will
want to be prepared for them.
Capital, men and management,

M
i

the

have

and

Britain had previously, in con¬
junction with the United States,
agreed to a wartime division of
export trade, the United States
taking over the
Mediterranean

it possible

AA

>

needed

of normal commercial relations.

some

the money they want with
less work. The funds that make

#5
'1*1:

.

at

-

Continent prevented a resumption

secure
•

Con¬

the

and the fact that the military au¬

take more time off now as they

tAj'-v:

'

as

of

and
secondly, financial considerations

total operating rev¬

a

market

available

of $288,158,280.

enue

■

Will

•

liberation

reasonable

.

'•

I
1

betterment?

a

of Europe which threw
the markets to a revival of
/export coal trade, if such revival
had been possible. But it was not
possible for two reasons: Britain,
whose production had been de¬
pleted by the loss of man-power made the nation the richest and
in the coal-fields, did not have
the most democratic in the world,
enough to; supply all that the will die. America will not only

taxes, a net income of $30,374,720
•

of

talk

no

open

After

argument.

been

tinent

pair of shoes or even a locomo¬
i| the coal consumed in man¬
ufacturing these items was sold at
a
price which allowed the same
rate
bf profit enjoyed by the
buyei of the coal.
Some might
say that would be all right for
srqalbjconsumers but not for large
buyers.
The annual report for
1944 of a prominent utility does
a

1;

production had been
past year, there

the

outstanding event in 1944

the

Was

tive

,4 ' '

in

have

shortage.:-

reason

prove! its

If that

available

are

higher basis, so there is no
why coal should not im¬

a

on

industries

other

in

Profits

certainly should hot place his relating to the late investment
position of being trust mania, their existence was
not unwarranted by the
a "non compos mentis". It is a rule
conditions
of
merchandizing: that^> t he of the time and they have per¬
customer is allowed to make his sisted and are likely to continue
own choice.
Accordingly the se¬ and expand as an instrument for
curity dealer should not be sad¬ the placement of funds.
dled with the responsibilities of : It should be noted that the
legi¬
a trustee or guardian in his rela¬
timate investment trust is a rela¬
tions with his customers* neither tively old and well
established
and

to

stitutions

,

the

who

were

caPJabr^VlpV

bearing the risks involved, l JM
were hot meant for widows an
orphans. As stated by Dr. Am
E. Taylor, the Director of the v>

and p0"1.
pamphlet

S. Bureau of Foreign
tic

Commerce

in

a

sued

by the Monetary
Inquiry last year: :

Standa
'

assumed thai
war, the experience
foreign" investment

"It should not be
after

the

American
the

Twenties

will

be

(Continued on page
,

'J.,-

,

•

repea

1141)

'

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4418

162

Volume

Expanding Post-War Investments
!

'

.

-

"...

;

i

4

1141

(■:

<4

7.

,

'.'A

•

•.

r"

•"

I

*

-■

...

J

Security Traders Association of Los Angeles

poses.
All this requires not only
(Continued Iromrpage 1140)
conditions ;; short-- of sus¬ intelligence but knowledge and
instruction. Those engaged in the
tained world prosperity and
business of placing investments
strongly established political
order and world wide monetary among the people have the re¬
stability it is possibly safe to ex¬ sponsibility not only of possessing
these
qualifications
themselves,
pect that equity investments will
but of imparting to those with
provide the primary medium for
whom they deal these same qual¬
international investment. So
~
called "direct" investments,imply ifications. V V
The desirability of more educa¬
the usual risks and do not exert
the pressure - on
the exchanges tion and skill in the securities
under the unfavorable conditions business has been strongly voiced
the Education Committee of
as do obligations calling by con¬ by
tract for specific annual payments the Investment Bankers Associa¬
tion.
This ^committee made last
in currency to the creditor." <7..

Under

i

;

•

tions.

.

the greatest aid, to
investment expansion will

Perhaps
future

|

adequate and efficient educa¬
in the principles of private

be

tion

.

and investment. Like a
trained soldier: under proper in¬
finance

distinct

two

year

Education Needed

The first

ciation
well

recommenda¬

was

that the Asso¬

the services of a
educational direc¬

engage

qualified

tor, who would give full time to
tion; of

training
in

conducted

struction and guidance, American

centers.

investors should, have full, knowl¬

tion

edge of the conditions they may
to face, when they make

distribution

various

be

to

courses

financial

The second recommenda¬
the publication and wide

was

of

booklet

a

which

would

acquainted. with the risks
involved and:: the conditions es¬
sential for sound and profitable
business operations.
The prime
motive
of
all private business

emphasize the purposes of
investment banking.
This object
could
serve
two
purposes.
It
would furnish young men with
the opportunities in the invest¬
ment business, and at the same
time furnish the public with the

| undertakings is profit. The ele¬

knowledge regarding investments

have

They should be

their investments.

made

making for profits and the
may cause losses
should be made plain to all who
ments

which

will

eventually

conditions that

invest their funds for income pur¬

Clifford

the development and administra¬

stable

more

and

lead

to

expanding

a

in¬

vestment market.

Nicholas P. Kir wan

Hey

does

breezes

not

Colorado

for

to

seem

answer

securities. That same
conviction is held by members of

Washington.
Virginia came through by having
two of its prominent officials at¬
tend the hearing. We urge all of

the

you

municipal

of

Committee: of the

Municipal

Bankers; Association

Investment

America, with whom your com¬
has worked
closely, the

tions and

officers.

number of municipal

a

have

All

working

been

will

together closely, and efforts
be

redoubled ^towards

the Boren Bill out
when

Congress

Your

in Oct.

convenes

or sooner.

been

bringing
committee

of

efforts

Committee's

has

work

specifically: to

obtain en¬
dorsements and support for the
Boren Bill throughout the coun¬
try. Members and representatives
have contacted state legislatures,
city councils, county boards' and
organizations of municipal offi¬
Of the 49 endorsements offi¬

cers.

All

cially listed in the hearings

this

on

.

your

important

very

of

have

us

interested

been

in
seeing the Association gain
recognition in the security field.
Being the youngest of the na¬
tional
organizations
recognition

did

not

come

so

It

fast.

was

es¬

pecially slow in coming to the
municipal branch of our Associa¬
tion. However, through the work
Russell

of

.

to double and redouble

work.

mittee

Municipal Bond Club of New
York, several municipal organiza¬

and

Dotts

on

the

Port

of

New York Authority tax case, the
done

work

last year,

by

Chairman

our

Committee

his

ance

of

and

representatives,

has

members

recognition
Securities

the

When

come.

and

of

and the valuable assist¬

(Continued from page 1080)
for many years

to come. Despite
policies over the
that have tended

governmental
past 20 years

States

United

the

the

Philadel¬

in

listed

zini

uncounted

dorsements
and

numbers

have

forwarded

been

of

en¬

obtained

to ' members

of

Congress. A great many letters to
members of Congress i have been
written after

Boren Bill

the meaning of the

was

explained to citi¬
Officially listed endorse¬

zens.

ments

states:

came

from

the

following

\

New

Jersey

1; New - York 6;
North Carolina
1; Ohio 7; Pennsyl-

va£*a 6; Texas 2; Miscellaneous 4.
These endorsements refer
to those
officially

only

reported in the

hearings. Others have
since,

some

been added

recently having

come

Aft from Oregon and it is indeed
dull week when

Chairman,

our

Buck

a

valued Vice-

Alleman

does

hot

obtain an endorsement down
his good State of Florida. Ob¬
viously there are large territories
which have not
m

the

officially endorsed

Bill,

or

if

official

ments have been made
hot

it

come

endorse¬

they have

to the attention of this

^mmittee.
Alabama and. Georgia
«ha
Tennessee

Parsons, at the same time that
went to
other organizations.

Mr. Graham Mr. PizChairman repre¬
Association. Mr. Dotts

Mr. Parsons,

and

sented

your

our

represented
the Philadelphia affiliate of our
Association. As stated previously,
members of your Committee have
kept in touch with and worked
closely with representatives of the
A1

Mr.

and

Tryder

Bankers

Investment

■

Association

America.

of

Arkansas 1; California 4; Flor¬
ida
7; Illinois 2; Kentucky 2;
Louisiana 3; Michigan 1; Missouri
2:

Mr.

Due

fact. that

the

to

we

oc¬

casionally have a hot day or two
Louisiana at this time of the

in

year

flowers

available.

not

would

One

eral.

were
Had they been we

brought along sev¬
have been pre¬

have

would

bouquets

for

Graham for the
hard and valuable work that he
did as Chairman of this Commit¬
sented

for

tee

Tom

to

eighteen months and for

which he has given
during the past six months. He

the guidance
us

that the
have been honored to

has been the wheel horse

rest

pull

of

"Buck"
us

us

The

with.

Would

have

Alleman.

had gotten

results

Results

has

the

Boren

have been part of our

The third
1*, -Massachusetts,
Connecticut, would have gone to our good and
Bhode Island
and
New Hamp¬ tried friend from, the Queen City
shire.
Indiana, Iowa* Kansas: and of the Ohio, Senator Stanley Mcmissing.

are

So

law

long

before

this.

.

Nebraska

are*

prominent

in their Kie. The record of interest shown




pro¬

the railroads under pri¬
management are, indeed, re¬

vate

markable.

Hitler

mistake

building

of

made

fatal

a

super-road¬

The purpose
of this writing,
consequently, is to point out the
possibility of a drop in railway

believe

operating

against the throwing

and

revenue,

dition
nent.

the tem¬

i

■

that the

guess

initial shock

seen

may

greatest. The matter should
be adjusted before too long; but

we

know

that

there

is

always

discount

over

securities

of good

based

their day.

A Also

On

many

<■

know

we

views that

that
are

the views expressed

a

over-

given situation and to

a

any prevailing con¬
likely to prove permar'
Therefore, we would warn

thoughts that the railroads have

be the

tendency among investors to

that

is

railroad

upsetting of the earnings
levels of many railroads. In pre¬
senting these views, we would
porary

to displace railways in great
Thus he was not able to

ways

ing—-and they

may

there

are

contrary to

wri^

in this

be right ap^

the views herein may be wrong; >

his

move

fast

»*■

enemy.

disorganize the
Apparently the course of

the

turned

war

y

machine into Russia

war

enough

4;

to

44INVEST

U

IN

THE

WEST"

-

.

efficient han¬

on

dling of American transportation
inefficient handling of Axis

and

traffic. This is

TRADING

lesson that should

a

MARKETS

A

/

the Amer¬
public and its Governments.

be long remembered by
ican

tlr

PACIFIC

Securities

of

Future

Regarding the future of railroad
securities, it would be wise for in¬
vestors

to

the

that

assume

&

railroad

};■ ■.

widespread
bankruptcies
of
systems are over.
The
worst that should reasonably be

possibility

the

is

.

"

V

'

V •

of

4.

.V-

•'

.-i.-vAv

*

<•
'

.

:

..

'

'A

>• "c

V.v. V

r»

Maxwell,Marshall
Member Los Angeles Stock

interest.

647 S. SPRING ST.

organized systems have been cut
down drastically and most of the

LOS ANGELES

companies have used war-time
earnings to reduce charges by 20%
and

.VA

j
•

•

&

Co.

cases.

of give in the matter of bond
Fixed charges of the re¬

gree

'V,

..

capital adjustments
In fact, nearly all
the railroads have a great de¬
few

'

ft

_

*

"voluntary"
a

COAST

SECURITIES

days

of

anticipated

The carriers

more.

are

Exchange
40 WALL

jbisiect pnituUa Win*

14

PASADENA

BEVERLY HILLS

ST.

NEW YORK 5

SAN DIEGO

LONG BEACH

now

well-fortified with cash resources
stand

could

and

considerable

a

period of deficit

operations^ Past
of bond maturities in

problems
most
the

have been relegated to

cases

distant

Moreover, it

future.

likely that the Government

seems

stay in the banking business
its Reconstruction Fi¬
nance Corporation.

will

for

through

Ohio

in

Boutonnieres

the

for

speaks

better than

far

our

due

are

Jerry

Glas

Communication
MEMBER

Senator

words could.
to

Don

and

SAN FRANCISCO STOCK EXCHANGE

TELETYPES
LA 23

LA

24

It

has

been

worked

a

real

with

LOS

pleasure to

the

members

representatives,
with
our
President, with our very fine Sec¬
retary and others of our organi¬
zation. The cooperation has been
still

lot

a

of

work

that must

be done before it can be

that
won.

our

one

Let

us

reported
big battle has been
all

strive

to

.

...

..

Established

1921

Specializing in

ANGELES

ALL INVESTMENT

7 PHONE
VANDIKE

and

is

.

Van

Boskirk.

have

r

LOS ANGELES STOCK EXCHANGE

BELL SYSTEM

many

including A1 Tryder, Walter Ma¬
son,

7
?./„

extent.

bouquet splendid in most instances. There

to F. Monroe
If the rest of

just one-half of the

which 'he

Bill would

second

gone

railroad

efficient

most

duced by

of

held

7

Of

representatives to

phia in July of this year, the in¬
vitation went to our President,

4

i

Rail Revenues to Decline

in

the
Bill your Committee can justly
claim credit for having been in¬
strumental in obtaining some 43.
In
addition
to
those > officially
on

y.;. >1'

ry.v

Exchange Commission invited

groups to send
the conference

•

'■j.

system in the world.

mountain

J. Zimmerman

'>(*■

with

cool

W.

'•

found itself at the start of the war

Having

McOmber

Hey, Nelson Douglass & Co.; Vice-President: Nicholas P. Kirwan, Dean Witter•&
Co.; Secretary: Jos. F. Gallegos, Pacific Co. of California; Treasurer: A. S. McOmber, Revel Miller &
Co.; National Committeemen: John C. Hecht, Butler-Huff & Co.; William J. Zimmerman, Bingham; Wal¬
ter & Hurry. Clifford E. Poindexter, Turner-Poindexter &
Co.; Harry Cottingham, Dean Witter & Co.;
Leo B. Babich, Hill, Richards & Co.

railroading,

absence.

S.

President: Clifford L.

toward the destruction of efficient

(Continued from page 1083)
time than to remove the possibil¬
ity of bureaucratic control over
the issuance of and trading in

A.

4

TRUST SHARES

PACIFIC COAST BONDS

1071

UNLISTED STOCKS
60

Private

Banks
*

&

Lines

to

Brokers in

Investment

Houses

ISSUES LISTED ON
ALL

EXCHANGES

74

make

possible for the report at our
"The
Boren Bill has been passed. Show
us
municipal boys something to
work on that will further help the
it

next annual meeting to read

corporate business."

639 South

Spring Street; Los Angeles 14,.California

4

THE COMMERCIAL & FINANCIAL

CHRONICLE

important problems. The National
Security Traders Association has
played an increasingly active part
in promoting the welfare of our
We

business.
to

a

\

I

'

Aggressive

;

'

A

,

V

forward
r*\

'.-.V

•'V

portunities they afford to explain

(Continued from page 1069)
HENRY J. ARNOLD

the

in

spirit and per¬
formance since organization The
National Security Traders Associ¬
ation stands on the threshold of a

S

look

can

continuation of the Associa-

activities

of

fellow

members

other territories, is a great as¬

in

set in knitting

the Association into

closer national unity.

I extend best wishes to Thomas

Joseph W. Sener

•

tion's progress in this respect under

the incoming administration.
congratulate the retiring of¬
ficers on a job well done and ex¬
tend my best wishes to the in¬
coming administration.

I

Joseph W. Sener
EDWARD D. JONES
I am very optimistic about the
post-war possibilities for the fi¬
nancial

industry and I am particilarly impressed with the National

Edward

D.

Jones

v:*

Security Traders, Association's fine
SPECIALIZING

DEALERS,

IN

SERVICE

start to provide jobs for returning
We all have an obliga¬

TC

traders.
tion

PROFESSIONAL AND

all

try will follow the pattern set, by
the
National Security
Traders

INSTITUTIONAL ACCOUNTS
LISTED AND UNLISTED

to the veterans and I
hope
phases of the financial indus¬

Association.

SECURITIES

The Middle West appears to be

ready
and its

for

all post-war
responsibilities.

business

Edward D. Jones

Lt.

-

^
MEW

.

2Q

PINE

STREET

NEW YORK
TELETYPE

SAN

MEMBERS

YORK

NEW

EXCHANGE

C

FRANCISCO STOCK EXCHANGE

1SOD

5

SAN

RUSS

BUILDINB

FRANCISCO

I-267H

TELETYPE

ORDERS

EXECUTED

SUTRO

IN

ALL

MARKETS

3F

29

\

CO

&

Investment Bankers

Distributors

of Primary, and Secondary Offerings
Brokers

•

Underwriters

MEMBERS
NEW YORK STOCK EXCHANGB

SAN FRANCISCO STOCK EXCHANGE

NEW YORK

LOS ANGELES STOCK EXCHANGE

CURB EXCHANGE

(associate)

San Francisco 4

407

New York 6

61

Los

Montgomery Street

Broadway




San Jose

Angeles 14

210 W. Seventh Street

4

15 E. Santa Clara Street
Direct Private Wires

Col.

HERBERT H. BLIZZARD

STOCK EXCHANGE

YORK CURB

Beverly Hills
9405 Brighton

Way

4

(Air Corps)

Greetings to the

members and
guests of the NSTA!
The oppor¬

tunity to gather in great numbers
this year is overshadowed
by the

Thursday, September

San Francisco Bond

private redevelop-

available for

under conditions
wh ch would appear to be impos¬
sible for private redevelopment

ipnt

it does so

NSTA MEN IN SERVICE
(Continued from page 1072)

title any ^direction
redevelopment project
built and financed by

in the

that

the

chall

be

'■ ' '

enterprise." |

private

'

added that under the pro¬
visions of Section 307 (3), obliga¬
tions of local public agencies op¬

John A. Milburn

H. N.

Bernard, Jr.

Newton H. Parkes

William Frankel

Frank S. Breen

Carl T. Pattison

Harry T. Gallaher

Charles C. Clarke

Henry T. Patton
Edward J. Phillips
J. Leslie Rogers
Joseph Smith

L.

John B. Swann

Edward Horn

J.

Goldwater

Richard H. Goodman
Willard S. Gourse
H. Fraser

Gurley

Alfred S. Warner

Clinton G.

Harry C. Welsh

A. C.

Warren Donovan
exempting from such taxes the
credit necessary for private build¬ i Alvin A. Dykes
£ R: B. Elwell
ing and ownership.
<■
.
.
David A. Fitzgerald
As to the research and local

E. Coit Williamson

Hough
Huff, Jr.
Irving Isaac

John

Allan Kadell i

C. Howie Young

Charles E. Kimball

analysis >program pro¬
posed to be set up to aid private
enterprise housing, this work is
already being carried on partly

Florida Security Dealers

George Kranz
Joseph D. Krasowich
Gustave L. Levy

tion

v

J. L. R. French

market

by

other

There is no

Edward

industry.'

aid for private en¬

Samuel

hearings, on postwar

Frederick A. Pakas*

The Cincinnati Stock &

Peter R. Pielsticker

Bond Club, Inc.

Rakenius J. Possiel

J. McGilverey Powell

George Eustis

Peyton A. Randolph

Lothrop

William Lundy

Harry A. Filder,-Jr.

Harold Madary

Carl

George T. Grady

O. R. Stoll

Wallace L.

Paul C. Hood

Charles N. Stonebridge
William J. Tetmeyer

Mossop

Robert Parmenter

George H; Kountz
M. Herbert Oettinger

J. Russell Potter

George F. Oswald

Belmont Towbin

Arthur H, Reilly

Gordon

Oliver J. Troster

Jack

Paul

Joseph E. Bainer
Dana F. Baxter.
Howard J. Eble*

W.* Stevens

Sughrue

Walter T. Swift

Appleton

Henry D. Boenning,
Samuel S. Boston

Art Randall

Kenneth H. Owens

Thomas McGuinness

Russell G. Wardley

Raymond Smith

Schollenberger, Jr.
John C. Wright

Traders Association

Emmet Whitaker

Earl

Joseph Cummings

Thomas

Robert R. Daffron

Bert Ricketts

Donald W. Darby

William
Freeman

William K.

Carbon
the

Co.

will be
New

Greater

York City Victory Loan

tee;

Gale

President of

Insurance

Commit¬
Johnson,
3rd
Vicethe Metropolitan Life

Co.

will

of the New York

be

Chairman

County Victory

Industry

Cobb

will

the

downstate

George R. Kemon
George H. Kitchen
Benjamin H. Lowry

James

to

further

of

the

the

new

Spring Street

SAN FRANCISCO

LOS ANGELES

Tele. SF 431-432

Tele. LA 533

San Jose

Oakland

Long Beach

Stockton

-t'M

Santa Ana

Monterey

Pasadena

Reno, Nev&y'

D. Cleland

Sacramento

San Diego

George E. Dedrick
John J. Doherty

MacFarland

650 South

300 Montgomery Street

Joseph C. Cabbie
Edward L. Chapman

Beverly Hills

Fresno

Joseph F. Donadio

V-k%

Treasury

Bonds of 1967-

A

sale

in

New

$200 E bond
the picture of

will bear
ranklin D. Roosevelt. Indications
that other states will take
similar steps,
*

1959-

will open for indi¬
vidual
subscriptions Monday,
October 29th and extend through
The




-

We take

pleasure in announcing the opening of

offices

conduct

to

a

general investment business

drive

December 8th.
The
corporate sales will open on Mon¬
Por
individuals
the
national day, December 3rd and extend
Quota will be
$4 billion; corpo¬ through that week to the close
rations, savings banks, life insur¬ of business, December 8th.
The
ance
period for Savings
companies, etc., will be as¬ accounting
signed a quota of $7 billion. The Bonds and C Notes will cover the
bond quota will be
two months' period from October
$2 billion,
vj? so-called "baskets" of se¬ 29th through December 31st. The
curities to be offered will be:
marketable
securities
will be
dated November 15th, except the
LondsleS E' F and G Savings certificates which will be dated
Series C Savings Notes.
December 3rd.
v
are

>y

1972.

62, maturing December 15, 1962.
%%
Certificates of Indebted¬
ness maturing December 1,
1946.

headquarters at Buffalo.

York

INVESTMENT SECURITIES

3rd

Henry W. Byrne

with

which

INCORPORATED

George Brooks

Eugene Hemphill
James Heward

B.

Rrst California Company

J. Brady

James Brewer,

72, maturing December 15,
2y4% Treasury Bonds-of

special committee will be organ¬

i

Hartzell

group and Edward H. Letchworth
will direct the activities upstate

ized

Complete California Coverage

Stewart

Candler

Division;

head

Victor

Philip Hawley

Stephen Massey
Alfred R. McBride

will be director of the Commerce
&

Petersen, Jr.

Walter V. Bradley

Carl A. Haller

James

Distillers,

Maintained

tion of New York

President

National

Trading Markets

Parker

Security Traders Associa¬

Halcomb

Charles E.

Loan Committee and Seton Porter,
of

Active

Andy Steen

Gerstley
Grant

Carbide

of

*

John F. Fant

Frank E. Haas

&

Graham, Jr.

Edgar R. Christian

participated with him in previous
drives. Mr. Gehle announced that
William E. Cotter of the Union
Chairman

DEALERS

DISTRIBUTORS

UNDERWRITERS

Arthur Dolan, Jr.
Chester Glass, Jr.

Cornelius A. Dorsey

have

i

Hodge Davidson

James

who

•

Herbert J.

San Francisco Bond
Jr.

John H. Derrickson

women

!

i
Vi*

Greenawalt

Samuel

j

"

William Lally

...

New York would be asked to raise

and

<

* :
: o

Russell K. Rowley

Jackson Palmer

men

Harry V. Buckle

.

Fred O. Guider

G. Leslie Carter

Wednesday, Aug. 22 with a group

Bradley

Donald Jacobs

for
a goal of $11,000,000,000.
Freder¬
ick W. Gehle, Chairman of the
New York State Victory Loan
Committee said on Aug. 27 that

of

Inc.

Charles C. Bechtel

Francis J. Patrick

Gareth Kellam

meeting

and Michigan,

Bruce H. Beal

H.

Donald

a

11

Association of Detroit! i

Association of Connecticut

Loring Griggs

Carlos- Cardeza

30% of the*

Securities Traders

Richard D. Palmer

Ferree Brinton

about $3,500,0QO,000 or
nation's total.
After

J

Whiting

Robert E. Weaver

John L. Brand

partment's Victory Loan drive

William E. Ritt

Edmund A.

Frank Cilento

Thomas A. Bowers

De¬

j

Herbert

Charles S. Nadeau

Herbert H. Blizzard

Treasury

j

E. Holbrook

A. William Battin

i

>

Joseph E. Masek
Arthur H. Rand, Jr.

Frank W. Morrow

Leonard S. Bailey

i

Harold L. Field

Walker,
Washer"

Robert S. Weeks, Jr.

William C.

I

Bernard Decheine

Graham

Hardony
Martin J. Long

Herbert W. Young

j

Donald N. Anderson

George V. Jackish

Frank E. Voysey
Charles H. Wilkins

Bond

John Voorhis

Security Traders

Michael

Co.;

Traders Club

Arthur S. Vare

Cleveland Security Traders
Association

Skinner, Jr.
j; Perry Smith, Jr.
Charles

Reis, Jr.
C. Siegman

&

Twin City

James Torpie

Joseph R. Work

D. Sheeline

authorities."

the

David Saltzman

Gearhardt

Paul W. Glenn

McAuliffe

J.

and specifically ex¬
cludes transfer to public housing

to

backer

Kaiser & Co.; Matt

Walter O. Minter

provides
The Investment Traders
such properties have to be
to private parties promptly Association of Philadelphia

Incident

SchwaEdwin R. Foley,
Morton, Davis,
Skaggs & Co.; Frank McGinley,
Blyth & Co.
Directors: Frank Bowyer,

Joseph Schrank
Sidney A. Siegel

Paul

,

Frank Bowyer

Walter B. Pierce

John G. Preller

Wm. T.

after the war,

Parsons

Walter J. Dehner

Joseph M. Rinaldi
Joseph F. Robbins
E. J. Ryall
John L. Shea, Jr.

>

C.

Mitchell

Richard C. Crisler

Arthur D. Noble

of the bill

in
Victory Loan Drive

James F. Musson

Harry Wilson

Meyer

Carl A. Levine

John

the

New York Quota

H. S. Wheeler

S.

Howard

stands, specifically

sold

C. Benjamin

John H. Lawson

Gilbert M.

strictly in the direction of public
housing; is the provision authoriz¬
ing the sale of any portion of the
$1,800,000,000 of defense and war
housing built under the Lanham
Apt to local public housing au¬
thorities. The Lanham Act, as it
that

R. T. Sterling

Edward W. Lawrence

National Housing
! Agency permanent would create
a tiew and powerful major agency
committed to the furtherance of
public housing through one of its
constituent units, and at the same
time able to control and interfere
with mortgage credit /and home
building in the private enterprise
housing industry to an extent
much more likely to hinder than
encourage this activity," he adds.

now

Milton

Nicholas Lamont

housing policy testified against the
continuation of this temporary
wartime consolidation, he recalls.
"The language of the measure

further slanting

R. T. Ackman

Jarvis

G.

G. Carleton Jordan

points out. With¬
out exception the spokesmen for
private enterprise in the Taft

"A

'

,

Robert U. Ingalls

ing Agency, he

making

Herlihy

Frank V. McKenna

,

Frederick L. Harson

terprise in the proposed continu¬
ation of the overall National Hous¬

Committee

Association

David A. Haley ;
Birney S. Halliwell

departments of the Gov¬
and partly by organiza¬

ernment,
tions of private

W. Wurts

James H. Goddard

George

S. Strauss &

Gordon R. Foote

under this slum clearance •.
are free from Federal taxa¬ f John L. Daley
Russell Dean
whereas there is no provision

erating
title

Kammerer, J.
Co.; Vice-President:
Tony Bottari, Sutro & Co.; Sec¬
retary - Treasurer: E. Kenneth
Donald, First California
Corp.;

Frank J. Elliott

Richard H. Oiler

Cogghill «
Gerald S. Colby.
Wilfred G. Conary
John J. D'Arcy

'

i ^

Albert W. Baker

Frank

He

•

|

Traders Association.
President:

"There is no¬

function," he says.
where

1143|

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4418

162

Volume

Underwriters

-

Distributors

-

Dealers

Saturday,

Livingstone & Co.
Investment Securities

Russ

Building

SAN FRANCISCO
Direct

639 So. Spring Street
LOS ANGELES

private wires to New York City

Thursday, September 6,

AMERICAN MADE

MARKETS

IN

CAN AD IAN
«&<M

cy

$<#10Jy &.




SECURITIES
'/YnirtiirViiit

/

•

n

\

*

•

v

-

;

'

'

'V

HAnover 2-0980

■

New York 5, N. Y.

William Street

52

11

Teletype NY 1-395
'

Ss
NEW YORK

MONTREAL

-'

i'ilB ' R '
TORONTO

1945