Oakland Tribune from Oakland, California on January 6, 1942 · Page 21
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Oakland Tribune from Oakland, California · Page 21

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Tuesday, January 6, 1942
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WALL STREET ITS ACTIVITIES By George T. Hughes NEW YORK, Jan. 6. If . is that is, a war of mechanizations in which the deciding factor may well be the most tories then the use of our much thought and attention. Without pretending to know the answers, the observers 7 may ask a number of questions should play a large part in bringing ultimate victory to our arms. Une of these ob viously is whether we can af ford to be complacent in the belief uiat, because of our superior machines and more capable work' men, a 40-hour week per workman ii sufficient to beat a much longer work -week for Axis labor. A great many workers art putting in mors than 40 hours per week, of course, but one of the recent Conference Board studies showed that the average is onlylightly above tne 40-nour level. THERE ARE LIMITS te a man's endurance at any sustainedeffort a point oeyona wnion tnere is diminishing return in output. In England, the maximum efficient . work-week for male labor has been foufid to be 56 hours per week. -It is perhaps just a happenstance that 66 hours go into the 168 hours which' make up a full seven-day week, just three times. That is, three shifts of workmen, putting in a 40-hour work week, could theoretically keep plant busy 24 hours a day for seven days each week. Repairs and breakdowns would, of course, mar the perfection of such a picture, along with time out for illness of workers, interruptions to materials flow and the like. But some plants in our machine tool in- dustry actually have come pretty lose to that ideal of keeping plant and equipment humming every hour, every day of the week. ELEMENTARY arithmetic indi cates that an Increase of 33 per cent, or one-third, m the number of workers would be required to work plant ven 160 hours a week, if no workers exceeded the 40-hour week. To do that multiplies the dif ficulties as to housing, transportation to and from work, along with supervision, etc., etc. But that is a matter of. taking the 40-hour week at its "face value," whereas, as a matter of fact, overtime is the rule in our war plants, Perhaps, those who have our war needs and our productive potentials figured out have good and sufficient reasons for being convinced that we do not need a 56-hour work-week to achieve our maximum war effort. If that is the case, then is it not worth questioning and considering whether the maximum work-week might not be worth jihilsuin order to avoid vera disruption of our el- Industries. IF WE DO NOT NEED the most effective use of man power for war production, why not move up to it anyway, and let the excess count in production of civilian goods? It is easy to throw civilian industry into confusion, but any effort we can make to avoid it should be worth while when considered in the light of lost incomes, lost employment and lost taxes all of which must be added to the cost of the war, instead of taken from it. It requires no expert knowledge to reason that, if the Treasury expects to collect in taxes some two- thirds of the war costs, as much asigher social security taxes are possible of civilian activities must be left undisturbed or even stimulated, if possible in' order to have 'sufficient income sources upon which to levy. Certainly, no one can expect the business of manufacturing war materials on a basis of limited profits to return in taxes two-thirds of what the Government pays out for such materials, even if wages are 'nicked as heavily as profits. , ORDINARILY, the consumer goods industries are the heavy end of our economy, and in recent years that division has been emphasized while the capital goods division that is, heavy industry, now "war industry" has been given a hard row to hoe, with little or no encouragement and many obstacles put in l ttafh ITcv. .ftm'wififil .ifapn cuts, now in consumer goods will hurt our general economy all the more. Employers and employees In restricted consumer lines face declining incomes at a time when taxes and living costs are rising lustily. They are due to be hit from both directions income and outgo. And even in unrestricted consumer lines there is a high degree of uncertainty over what higher taxes' will do to National purchasing power. THERE IS THE BROAD general question, in other words, whether we are not incurring so much self-inflicted harm in our enthusiasm for an all-out war economy that National morale will suffer. And if there is a possible "ounce of prevention" in an all-around lengthening of the work-week, it should be worth a "pound of cure.' San Francisco Bank Declares Dividend Directors of the San Francisco Bank "have declared the regular semi-annual dividend on the common stock of $270 per share, payable February 2 to stockholders of record January 28. ' INSURED SAVINGS niGIT DIVIDEND ,YIELD ' i Matt Accounts Solicited Visit a 4 air file ta car aw . IM1m. fAKKIKO SPACE PEOVIPIP ALBANY FEDERAL . SAVINGS AND LOAN . . ASSOCIATION ... - '' LA S-114 1377 Solano Avenue -(Bttwiea Bma Carnal Atm.) - Albany, Calif. this war is what we are told it efficient and productive fac- productive facilities deserves the correct answers to which BEHIND THE FINANCIAL SCENE Louis M. Schneider New York Many people ask how come that corporate and banking heads know what will happen in military action long before it does happen? Here is an example: The Union Insurance Society of Canton, Ltd., of Hong Kong, and the Yangtze Insurance Association, Ltd., of Shanghai, moved their main offices to Sydney, Australia as far back as August The Canton Union group is a far-flung marine organization doing business in principal seaports of all oceans. These insurance companies, both practically under one control, moved oflt of Shanghai and Hong Kong be cause they saw ahead. Their agents reports supplied the information Such data is usually told leaders of corporations and banks doing an international business. OVERLOOKED N2 In the short span of Securities and Exchange Commission life seven and one-half years the agency has had five chairmen. All resigned for better jobs. Three were appointed to the Federal bench, one became an ambassador and one the dean of a law school. The Securities and Exchange commission was created by Con gress to, police the financial mar kets of the country. How this can be done with chairmen remaining in service on an average of only 18 months is something only the White House can explain. The Investing public hopes that the sixth SEC chairman will take the job for keeps and not as a stepping stone to a better post. The rumor wires buzz that Ganson Furceii will replace Eicher as chairman. He is qualified and will do a good Job. But why overlook Commissioner Sumner T. Pike? WAR TAXES Washington grapevines say the 1942 revenue act will run around the following rates: Personal income may be held to $25,000 annually with the Government forc ing purchases of a new type of war bond with any income above that amount after taxes are paid. Low income earners will be hit by a 10 per centor more rate. A general sales tax will be held off until 1943. Lowered gift and estate exemp tions and higher taxes. Capital gam and loss rates will be revised to favor the Federal intake. Corporate excess profits taxes will be lifted to as high as 90 per cent. certain. Excise taxes will be lifted to discourage purchases of items that contain war-need materials. SCAPEGOATS The Office of Production Man agement reports that from June, 1940, to September, 1941, orders placed for war equipment ran to the dizzy .tune of $15,274,400,000. One hundred companies obtained more than 82 per cent of the total. The remaining 18 per cent was placed with 2922 smaller firms. The war- order volume increased substantially since September. Of particular interest in the OPM report is that more than half of the $15,274,400,000 in war orders placed went to just IS companies. Three of these companies alone booked more than $2,800,000,000 in Army-Navy.business-a greater volume than given the 2922 small firms combined. The OPM did not name the com panies. It would be interesting to get the names of the leading 15, particularly the top three although it is not hard to guess. They sure will be scapegoats in post war speeches made by political leader. SOLID ' Washington did all it could to establish the good neighbor policy with Latin-American countries. Now it is their turn to show a good neighbor expression. The United StateJs at war and must use most of its 'output for military requirements. If the Latin-American countries show a willingness to wait for goods ordered and not make unreasonable demands,' it will place the Western Hemisphere good neighbor movement on solid foundation for post-, war economic conditions. f Pacific Telephone Stations Increase The Pacific Telephone and Telegraph Company and subsidiaries today announced preliminary net gain of 19,048 telephones in December, 1941, as compared with a gain of 12,360 in December, 1940. The preliminary net gain for 12 months of 1941 totaled 174,267 compared with 111,355 for the corresponding period, of 1940. Kroger Grocery Sales Up Sharply " CINCINNATI, Jan. 6. H-Kro-ger Grocery 8c Baking Company announced today tales in the 13th four-week period, ended December 27, of $27,283,282, up 27 per cent from the $21,417,534 for the comparable 1940 period. The increase in sales volume for 1941 to December 27 was reported as IT per eem $302,582,088, compared with $258,118,-5. FINANCIAL SECTION VOL CXXXVI Farm Army Joins Fight 'Food for Freedom' Drive Aided by Increase in Prices By FRANKLIN MULLIN CHICAGO, Jan. 6. With first effects of the "Food for Freedom: drive of American agriculture al ready apparent, the more than 6,- 000,000 U.S. farmers enrolled in an effort to fight the war with plow shares today were goaded by highest general price levels since 1930. Market statistics showed that at the start of the new year prices of livestock ranged from 1:59, 42 per cent higher than a year ago; grains from 18 to 41 per cent higher; butterfat 18 per cent higher and eggs 70 per cent higher. These are statistics farmers are weighing as they formulate 1942 operating plans along with advice received from farmer committee men representing Uncle Sam who are compiling results of the most unusual canvass in agricultural his-tqjy, recently completed. PROGRAM ATTRACTIVE Individual farmers, already fight ing the "battle of food" with 1941 bumper crops and greatly expanded livestock production, have been shown what they can do best to share in the 1942 program. This outline, coupled with the fact that poultry feeding for eggs, and live stock breeding and fattening for meat and dairy products have be come much more attractive than last year, on the basis of price trends, will guide them in trans lating their efforts into commodities for the larder of democracy. Production goals of some com .modifies, originally outlined several months ago, may be increased in the light of recent developments. Producers generally realize there is a surplus of feeding grains, largest in 20 years, but that feed is essential for production of meat, milk, butter, eggs and the like. FURTHER RISE LOOMS Furthermore, Government offi cials have indicated they arc. not adverse to permitting prices of cer tain commodities to exceed even 110 per cent of parity limits provided in pending price control legislation, if this is necessary to stimu late production. Parity is the price level Government economists deem necessary to give producers buying power equivalent to that of the 1909-14 period. There is an unusual assortment of items of which farmers will be asked to produce much greater quantities in 1942. Soybeans, milk, eggs, butter, cheese, pork, lard, beef, fruits and vegetables are on the "must list, instead of basic crops like wheat, cotton and corn to which agriculture turned a quarter of a century ago in its war effort, But, statistics showed, prices of these new "musts have shown the greatest appreciation in recent months, reflecting the wartime de mand. Trading Resumed In Sugar Futures NEW YORK, Jan. 8. fP) Trad ing in the domestic sugar futures contract was resumed today at the ceiling price of 2.99 cents a pound imposed by the New York Coffee and Sugar Exchange in line with a Federal celling. Trading in domestic futures was suspended on December 31 after the United States announced plans to boy the entire 1942 Cuban crop at 2.65 cents a pound. The Government priee-dministrator: added to this base prioe freight cost of .34 of. a cent and a duty of 3.74 cents from the previous top of 3.50 cents. The domestic futures contract covers sugar intended for consumption in the United States and the world contract for use outside the United States. Army Calls Bids At Fort Mason FORT MASON. Jan. 8. A number of Invitations for informal bids to supply the Army with manfla rope, hard wheat flour, oackine house products and various items of subsistence were issued today by the office of Colonel F. J. Riley, quartermaster supply officer for the San Francisco General Depot at Fort Mason. Full specifications regarding each of the invitations may be had by prospective bidders, from the quartermaster supply officer. Small Decline in Bank Resources NEW YORK, Jan. . FV-Guar-anty Trust Co. of New York, one of the Nation's largest banks, reported today total resources on December 31 were $2,558,587,698, . small decline from $2,699,925,837 on September 30. Deposits dipped to $2,259,893,401 from $2,388,555,611 at the end of the previous quarter. Holdings of U.S. Government securities contracted to $1,018,486,211 from $1,157,552,026. Neisner Stores , Set Sales Record ROC "ESTER, N.Y., Jan. 8,-WV- Neisner Brothers, Inc., operators of 116 variety stores, reported today net 1941 sales of $26;f 70,794,' an all- time high, 17.68 per cent above 1940'S $22,492,307. December sales, also it record, totaled $4,770,116, a gain of 30.73 per cent over the $3,648,928 recorded the corresponding month la 1940, NEW S. P. CHIEF URGES EMPLOYEES TO WAR EFFORT Southern Pacific Company personnel received an appeal for all- out effort to meet the Nation's transportation requirements in a new year message from President A. T. Mercier, released today. Mercier said Southern Pacific has prepared adequately for the present war crisis. The company purchase program for the three-year period, 1940-1942, involves a total expendi ture of more than $50,000,000 for new locomotives, freight and passenger cars. "Our first duty is to our Gov- ernment in the war," Mercier said. "Because our country is engaged in a two-ocean conflict, railroad service now is doubly vital in providing the main channels of land transportation linking the two oceans. "War factories depend on us to carry their raw materials, parts for assembly and finished products. In this way the whole industrial war effort rests basically on the railroads, and thus far the rail lines have done a job unexcelled by any industry." The vast expenditures and im provements of Southern Pacific plants has been made possible by increased income from the rec ord volume of business handled, Mercier said, but added the com pany received 26 per cent less per ton mile on 1941 traffic than on the traffic in 1929. Mercier cautioned company em ployees against careless revelation of information that may help the enemy, urged economical use of equipment and advocated greater courtesy and co-operation with the military. WESTERN ISSUES REGISTER GAINS Rail Equipment Advances ZA Points The San Francisco stock market chalged up about twice as many gains as losses today. Railway Equipment preferred ran up 3 points, adding to yesterday s up. turn. Others up 6 to 1 included Fire man's Insurance, Golden State, California Packing preferred, Vul-tee and Lockheed. Santa Fe rose 3, while Pacific Telephone preferred dropped as much and Galland Laundry lost point. Transamerlca stayed at 4.,and in the oils Standard, Tide Water and Union held their ground. New Morris Plan ssues Statement The first statement of condition of the Morris Plan Company of California was issued today, showing re sources of $7,419,788.04, capital funds of $746,033.13, and interest bearing thrift funds of more than 10,000 cus tomers amounting to $4,386,491.80. F. A. Collman, president, pointed out that the merging last week of the two Bay region Morris Plan institutions makes comparison with last year s figures difficult, because of slightly differing accounting methods. However, thrifT-funds show a gain of $307,972.57 over the total for both companies a year ago. Te statement shows that the Morris Plan of California is sixth in size in the United States. Collman pointed out that the bulk of the resources is in the loans and contracts being repaid monthly, and that Morris plan is continuing its record of averaging better than 99V4 per cent collectible on these loans and contracts. Building Supplies To Get Priorities WASHINGTON, Jan. 8. An OPM order assures continued supplies for the plumbing, heating and electrical trades. The priorities division said manu facturers of essential types of sup plies would be given priorities aid in obtaining necessary materials Further, retailers, wholesalers and jobbers will be required to observe maximum inventory levels to pre vent accumulation of excess stock and resulting inequitable dlstribu tion of supply. Federal Reserve Earnings Decline , nAomnuiun, iau. v. vv r. Hr1 RMrva Board announced toe'a; that net earnings of the 12 Federal Reserve Banks dropped from $25,860,000 in 1940 to $9,137,000 in 1941. .. Tha rfrnn attributed both to a decline in gross earnings and an increase in expenses, rtnf nt tha 1041 net earnincs. the banks paid dividends of $8,430,000 to member banks, paid the treasury $141,000, and assigned to surplus accounts $566,000. POSITION OF THE TREASURY WASHINGTON. Jan. t.UP) Tha 1 compared with corresponding data Receipts i Expenditures Net balance Working balance included Customs receipts for month Receipts fiscal year (July 1) Expenditures fiscal year Excess of expenditures Gross debt Increaso ovar previous day Gold aawats tJUUMFft MSOCIATt .! OAKLAND, CALIFORNIA, Cuba Feels Sugar Boom U.S. Purchase of Entire Crop Brings Prosperity Wave By BEN F. MEYER HAVANA, Jan. 8. OP) Cuba looks for a real boom in 1942, based chiefly on United States purchase of her entire crop of sugar the biggest cash product of the island. Not since the post-world War period of huge demand from the United States and Europe sent prices soaring have observers been so full of prosperity talk. The United States Government, through quotas and direct purchases, has agreed to take all the crop that Cuba does not consume itself or sell to its Latin American neighbors. Cuba expects to produce about 3,500,000 tons of raw sugar in the grinding season which starts soon. That will be considerably higher than in 1941, when exports from January through December totaled 3.137,492 tons, including a siitfble carry-over from previous years. The guaranteed price of 2.03 cents a pound is nearly a cent above prices Cubans received for their sugar a year ago. At the same time, the United-States duty has been cut to of cent a pound from 9-10 of a cent, and ocean freight rates have been reduced. Cuba's exports of other products to the United States also have been increased sharply. Beef production, negligible three years ago, has risen to rate of about 40,000,000 pounds year. Sales of cigars, famous Cuban product, in 1941 were about $1,500,- 000 ahead of 1940 despite war cur tailment of shipments to England and Europe. Shell Chemical Names President vMaMlnn nf J Onatermever as nmiHAnt nf Shell Chemical Com pany .was announced today at the offices of the company in San Fran- Ulann TJa 11IrH C. Tt. Aft BfUHn. who retired after 83 years of service with Shell. Oostermeyer has been connected with Shell for a quarter oi a cen- tuv and ainca in-ill naa oeen view president of Shell Chemical Com-vnr tha laat two Years he has been actively concerned with the expansion oi Bneu unemican pinm t.Miitioa for tha manufacture of nhmnniai nrnducts from oetroleum The company is now operating three plants on tne f acme toii--i nnminoiiBz -near Los Angeles, at Pittsburg and at Martinez on San Francisco Bay. Oostermeyer makes his home in San Rafael and is a memoer oi m University Club of San Francisco. Business Loans Fall Off in West v.l.u Insna rieMtned in malor Western financial centers lasi ween. The Federal Reserve Bank or aan i.ini.!w ronnrtixf rnmmerclal. .in dustrial and agricultural loans went down $5,000,000 to arouna snuo.uuu,-nnn in 91 hanira In ipvm chief cities VVV aaa. v. jaaa a Aggregate deposits In the 31 banks reached another new nign recora v the year-end, totaling $3,136,000,000. It was the 19th week in 1941 that deposits, checked weekly by the reserve Bank, had reached a new high. T a at wrap ir'. rhark. taken Decem ber 31, showed deposits up $322,000,-000 during the year. The total crossed the three-billion mark in aeptempcr. Chicago, Banks Set Deposit Record . CHICAGO, Jan. 6. P Total de posits in Chicago sbanks were "at rannrri hiffh ivpi ijecemDer OI. 1941, figures made public by the banks in response to calls from, tne comptroller of tne currency revealed. nannaits flffffreeated 14.566.585. a gain of $34,745,000 over September it. data nf the last wevious call. Loans and discounts totaled $1,108,-465,000, a rise of $31,677,000 over September 24. , Th rontlnental Illinois National Bank and Trust Company reported 1941 earnings of $15,172,829 or $10.12 share. Last year the bank earned 110 78 a share. The First National Bank reported aarninira Af l6.DZ2.fi33 or 121.7 a share compared with $20.28 a share in 1940. . Woolworth Soles ; Increase 14.5 Pet. NEW YORK, Jan. t.-Wy-T. W. Woolworth Co. reported December sales of $62,498,002, 14.5 per cent increase, over $54,571,108 in Decern-. ber, 1940. Sales for 1941 of $377,130,- 033 were 12.4 per cent higher than $335,287 m 1940. position of the Treasury January year ago: .-. jan.-a, i40 $ 25.102,571.39 65,617,833.47 Jan. 4, 1041 $ 20,947,153.88 61,163,893.06 3,473,456,262.05 v 1,867,644,633.01 "V!. 1,127,237,423.64 . 3.211,064.80 2,978,389,586.43 5,318,819,696.36 2.340,430,109.93 2,715,054,207.67 2,783,665.49' 4,215,147,018.13 ir.745.002,988.19 7,529,855,968.06 , 58,018,021,087.32 20,715,295.04 13,736,837481.48 -45,053,687,324.03 l2,C20,08.IOd '. .'. f.MOTO '. . . JITI TUESDAY. JANUARY 6, WHAT WILL U.S. BIG QUESTION TO RETAILERS By PAUL GESNER and JOHN BECKLEY NEW YORK, Jan, 6. (World Wide) What are you go ing to buy this year and how The men who run the country s retail stores would give a lot to know the answer to this question. Right now they don't know how much goods shelves to meet your needs. On the one hand, threatened shortages of many kinds of merchandise are providing. strong incentive for retailers to stock up while goods are still obtainable. Retailers increased the stacks of goods on their shelves fairly steadily during 1941 for just this reason. On the other hand, though, many store executives are becoming more cautious. They are beginning to wonder just how good will be their sales during the coming year. If they buy more merchandise, it may lie- idle and eat up its value in carrying charges or force drastic price cuts for its disposal. BUYING POWER VP There is going to be more money in people's pockets this year than ever before. National income is expected to reach the unprecedented total of $100,000,000,000. How much of it will be spent in the country's stores, is, however, another matter. First, there is a terrific tax bill to be paid on March 15. Some store executives look for a noticeable slackening in store sales around that date. Thert there is a new 1942 tax bill now being cooked up by Treasury experts to meet tremendous war expenditures. If some form of salary deduction plan should be adopted, it would mean two years' taxes would be subtracted from this year's income. Many tax experts believe some sort of salary deduction plan would be necessary if taxes go much higher and if they extend farther into the lower income brackets. TIRES BIG FACTOR Thar are other question marks in the retail picture, though, that only time can answer. For example, how is the rationing of tires going to affect consumer buying habits? For many stores, this is going to be a tremendously important factor. For example, consider the stores of a shopping center which serves a wide rural area. Will buyers con tinut to flock in from the same distances? Or will mail order firms get their business instead? In suburban districts, it is possible that soma stores may benefit at the expense of big city units. Wherever highway transportation is an important factor there are likely to be readjustments of some sort in buying habits. How drastic readjustments will be, we probably won't know until tne rubber on fam ily cars gets worn down thinner and we begin to think twice before taking the car out of the garage. It is .possible that the tire short age may bring a wide shift in mer chandising methods of big stores with greater emphasis on mail and tele phone orders. 5. F. Bank Shows Growth in 1941 , With its assets climbing and now close to the 200 million figure, the San Francisco Bank ended 1941 in excellent financial condition. Parker S. Maddux, president, re ported .that during recent days there has been a rush to buy United States Defense Savings Bonds. The bank already has sold over $3,500,- 000, he reports, and in addition has sold more than $45,000 United States Postal aSavings Stamps. The annual statement of the bank shows that deposits rose to $179,119,- 882 from the 1940 figure of $174,- 659,898. Loans on real estate like wise increased substantially --to - a new high of $9,898,365 as. against $86,621,421 a year ago. With reserves and undivided profits-up to $5,561,306, the total capital now stands at $15,581,306. t r - Total assets rose to $195,698,747 from $190,883,922 a year gar-: STATEMENT OF CONDITION af he eose of business, December J?, 1941 JtfSOUKCfS Cath and Due from fdral XcMrva and Ortiar lanki ...... Unlld Haiti Goymmtnllondt $W, Cawrty and Municipal Bond$ Offcar Bond, and SnvrHki .... loom and DtKomti , fumilur and flxhirat , .... Otfwr AfMfl .......... Dspoifri i . . i . Capital Stock . Surplu,, ........ ....... Undlrhhd ....... -. . Oihtr llabllltm ......... top$HiDmbS1, Dap.j Dacaiiibar36, DapatlttDaeambtrSI, The BflnK dp COMMERCIAL MAIHINOTOM, ttTM 99 - tik 1942 B 21 PUBLIC BUY? much of it? to purchase and put on their A inf rs krr IKIHIICTDV miiim I iMUUJirvi NEARS TOP RANK. 'Greatest Enterprise' By 1943, Soys Fleet SAN DEIGO,Jan. 8. (Pj The phenomenal . growth of aircraft manufactureunder war Impetus was reflected today in a predic tion by6ne of the industry's lead ing figures that within two years it would become the country's greatest single enterprise, V "By the end of this year aviation will- be one of the "five leading businesses of ' the. Nation," said Major Reuben H. Fleet, an execu tive of Consolidated Aircraft Cor poration. "Next year I believe it will lead all businesses in the Nation." Fleet spoke at a luncheon honor ing Harry Woodhead, who became Consolidated president in the merger of that firm with the Vultet Air craft Company; Rear-Admiral Ral ston S. Holmes, new commandant of the 11th Naval district, and Capt J. T. Mathews. Copco Revenues Rise; Net Drops California Oregon' Power Com pany reports a rise in revenues but a decline in net income for the final month of 1941 compared with 1940. Revenues increased to $476,995 from $455,927, while net income de clined to $83,074 from $94,971. Figures for the first 11 months of the year followed a similar pattern. Revenues rose to $5,076,410 from $4,819,827, while net income tapered Off to $864,970 from $888,027. New Plan to Speed Up Pijctfgik , WASHINGTON, Jan. 6.OT The War Department . has decentralized its procurement system to speed up war production and authorized its field offices to make advance payments on contracts of less than $5,000,000. Undersecretary of War Robert P, Patterson announced that field offices may make advance pay ments up to 50 per cent of the value of a contract without sending them to Washington for approval, a procedure that had taken at least several days. Direct payments to prime con tractors, Patterson said in a state ment, would be limited generally to 30 per cent, but in cases where sub-contractors needed additional financial assistance this would be increased to 50 per cent of which 20 per cent would be advanced to the sub-contractor. Patterson said the plan was in tended to encourage tha use of subcontractors in the war production program. J. P. Morgan Assets Show Light Decline The vesr ant nnrfltinn afutompnt of - 3rr Pr-Morffan" tt ' Ccl: -disclosed: a oeciwe in total assets to s7u,7zo,- 4U from $777,171,834 at tne ena or September. Deposits declined to $689,361,244 from $722,385,613. Holdings of U.S. Government securities totaled - $356,023,513 against $380,- 409,936 on September 30. : IllllllHM'L- (516,283.65 1,005,070.47 M,2 50.00 ,U4,6Q4M ifi)S,t7t.l9 28.3B9.7i 18,667,30 70M1 KtSOUKClt $4,793,500.?! LIABILITIIS $33,!00.00 113,123.00 ,873.07 i- $6,j24,4S9.iS 46 1,098.07 9.943.61 TOTAL IIABIUTIIS $4715,300.93 1937 . . , $1,025,104.43 1939 i J , $3,347,540.07 1941 It. $4, 324,459 J J CommERCE f AVINCS AN IAN AllO 3: business News NO. 6 Stock Rally Short Lived Early Gains Turn To Losses After Selling Develops' By. VICTOR EUBANK . NEWYORK. Jan. fl.-W") The stock market today tried to extend Monday's upswing and, for a while, was moderately successful, but enough selling eventually came in to stem the move. . A number of favorites managed to get up a point or so in lively dealings. Steels then weakened ana the rise In motors came to a halt uecimes or fractions to a poinxs predominated later. Brokers blamed profit taking on the recent bulged sharpest since September, 1939, for most Of the day's hesitancy. More and gloemier thoughts also centered on taxes and their forthcoming effect on corporate earnings. The slightly better tone to the Far Eastern war newt was mildly helpful, as were the Rus sian drives against the Nazis. BONDS UNEVEN Commodities wavered and bonds turned a bit uneven. : Among stocks Pepsi-Cola dipped to a new 1941-42 low. Other laggards included U.S. Steel, Bethlehem, General Motors, . Chrysler, Santa Fe, Great Northern, Du Pont, Coca-Cola, Anaconda and Montgomery Ward. In the resistant area at times were American Telephone, Electric Auto-Lite, Goodyear, Consolidated Edison, Douglas Aircraft, Texas Co. and American Can, CURB STUMBLES Stumbling in the curb were Aluminum of America, Gulf Oil, Phoenix Securities and Bell Aircraft Occasional gains were posted for Creole Petroleum, Pittsl gh Plate Glass and Sherwin Williams. Retarding steel shares was the seriousness of the scrap shortage which was accountable principally for the less than expected expansion in this week's estimated mill opera tions. The idea, too, would not down that the virtual elimination of the private consumer of steel products, with output going almost entirely to armament sources, might in tha long run result in the trimming of dividends in some cases. Growth Reported By First Federal Assets of the First Federal Savings & Loan Association have grown to $2,050,734.01, it was disclosed today when the institution, located at 436 17th Street, Oakland, issued its an nual financial statement Gains were largely explained by addition of $752,112.96 in new savings funds placed in the institution during 1941, according to William A. Davis, president , The First Federal has also increased its .reserves substantially during 1941. The institution, established here in 1935 under Federal supervision, has never availed itself of its full line of credit at the Federal Home Bank and has an unused available credit in excess of $500,000 for immediate liquidity. Butter Stocks Decline on Coast Heavy purchases of butter for military use cut heavily into stocks held in six ' principal Pacific Coast cities last week. Storage holdings went down nearly 650,000 pounds to 5,137,094. Stocks On hand were still close to double" those of a year ago. but going- down nearly three .'timet -as fast. National butter stocks held in S3 cities totaled 89,737,063 pounds, or more than triple the 29,561,811 pounds in stock a year ago. 3 THREE POINT I N V EST U E H T for those who must KNOW -. their fundi are secure. INSURED SAFETY Safety of your) invest- . ment up to $5000 is per manenUy insured. . AVAILABILITY Federal charter permit ?rompt withdrawal of unds when needed. HIGHER YIELD We serve those Who in-vest for a reasonable . . period and so pay yield higher than ordinary savings. 3 CURRENT DIVICliO START WITH ANY AMOUNT. ADO TO IT AT ANY TIMI V Flti 57- AK LOAM '-

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