Full text of Commercial and Financial Chronicle : April 10, 1952, Vol. 175, No. 5106

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n"*-»

ESTABLISHED 1839

UNIVERSITY
OF

h"

\ 1 'I »

MICHIGAN

*952

APR 11

mmnmmum

Beg. U. S. Pat. Offioe

Volume 175

Number 5106

New

Price 40 Cents

York, N. Y., Thursday, April 10, 1952

Copy

a

EDITORIAL

Have Faith in Our

We See It

As

A series of atomic

,

Capitalistic System!

explosions of the political

variety in Washington during the past week
two have left the
ment and

organized labor in the steel

politics, the public
President

was

Prominent merchandising executive defends

announces

that

he

system

cry,

will

when

not

run

| again for the Presidency, and for that matter has
intentions of

running for political office of
he is not now and will not
be in the near future "out of politics," but one
would suppose that he would, in the circumstances,
have felt somewhat more inclined to

no

kind.

any

Of

course,

very soon other surprises were to come.
•It had been clear for some time past that Newbold
not

hit either at the White
Pennsylvania Ave¬
nue.
The ineptitude of the President's original
appointment of this particular gentleman for this
particular job had long become clear enough. But
even so, there is still much mystery behind the
fact that recent explosions sent both Mr. McGrath
and Mr. Morris back to private life with none of
the

was

making

a

at the other end of

or

usual

amenities.

Observers

have

who

cut

their eye teeth are not

likely to take very seri¬
ously the assurances of the new appointee-elect
to the Attorney Generalship that the Department
of Justice will investigate itself and purge its
own

he

is

humble

Hughston M. McBain

to life,

and

and

contented

poverty and pain eradicated.
I

soul. Perhaps it would be more accurate to

have

had

business

no

forte—not mine.

say that they will take these statements very
seriously—as indicating a determination on the
part of the Administration-to "cover up" rather
than to "clean up" as the President had repeat¬
edly promised.
Continued on page 30

SECURITIES

man

great preacher. He is great be¬
eternally searching for the
truth.
In almost every sermon he frankly admits his
limitations, but in each he manages to share with his
congregation some newly - acquired
knowledge. He shares his enthusi¬
asm
for
living and inspires his
listeners to seek better lives through
an understanding of truth.
One day the preacher said to me,
"My field is religion. All my life I
have sought to understand and to
explain religious concepts. Of late I
find myself studying economics, and
I find myself wondering about the
capitalistic system. I hear appeals
from many quarters to do my part
in helping mankind by preaching
against the evils of the capitalistic
economic system.
"Now, I want people to live happy

But

House

economic

our

in line with God given rights of

A friend of mine is a

cause

act with statesmanlike courage.

'Morris

as

Managing Director, National Association of Manufacturer^

liberty, and the pursuit of happiness. Defines capitalism
as "a
system of free markets," and denies current eco¬
nomic evils, such as unfair wages and working condi¬
tions, inequalities in wealth, unfair trade practices, and
business depressions are caused by it, since these con¬
ditions have existed prior to modern capitalism,

Politics! All

case.

beginning to

By EARL BUNTING*

Chairman, Marshall Field & Company

or

country gasping with astonish¬

to

the

By HUGHSTON M. McBAIN*

mystification. The President surrenders

is

I

lives.

But I'm not

training.

want to

Economics

I

Mobilization is everybody's business. It means getting
ready—usually for war. Industrially, it means gearing
production for defense requirements, in addition to sup¬
plying the broad civilian market, that is a basic facto*
in our ability to out-produce any
state-controlled economy.
As mat¬
ters have shaped up during the past;
two years of industrial mobilization,
this explicity means:
(1) Fully demonstrated ability to
fulfill every defense order the mili¬
tary authorities have placed;
(2) Fully demonstrated ability to
meet normal civilian demand; plus—»
(3) And at least as important as
either — the staying power that it
takes, to make even the largest army
and the most powerful dictator find
it against their interest to pull the
trigger of a third world war.
By staying power I mean an econ¬
omy that can keep going for five—10
Earl Bunting
—30—years—however long the de¬

see

is your

Tell me, don't

fense period

doubt that I gave the preacher a very satisfactory

Continued
♦An

address

Mr.

by

McBain

before

on

the American

page

IN

lasts—under its own steam. At any tune
though undefined period industry must

during this long

Continued

38
* An

Management

address by Mr.

-

■:

■,yJ "

',". Y;

r■

7' *

Y •;

-

R. H. Johnson & Co.

Y

STATE AND MUNICIPAL

Municipal

Oil

.mi

''Y '.-".'I '

64 Wall

v.'

Street, New York 5

Direct Private Wires

Williamsport

Wilkes-Barre

Allentown

Washington, D. C.

NATIONAL BANK

Pacific Coast &

oflNDIA, LIMITED

Hawaiian Securities

Kenya Colony and Uganda
Head Office: 26, Bishopsgate,

Dejsn Witter & Co.

Subscribed CapitaL—£4,000,000

The Bank'

conductsevery1

description of

bonking and exchange business

Trusteeships and Executorships
Y

i

also undertaken




Bond

14 Wall
,

Street, New York, N. Y.

Members of
•

Principal Commodity
Exchanges

•' Lou Angeles • Chicago

Boston •

Honolulu

Hew York
Denver

Salt Lake City
Los

v;

•

'

'

'

'

•••-''

-{

/

>

•

.

■'

;

■

'•

•

Y

,

'

%

Natural Gas Co., Ltd.

THE CHASE
NATIONAL BANK
or THE CITY OF NEW YORK

Spokane

Angeles

CANADIAN

Peace River

BONDS & STOCKS

Puget Sound
Power &
Analysis

»

Light Co.

upon

request

DEPARTMENT

Goodbody

&

Co.

ESTABLISHED 1891

Dohihioti Securities
Grporatio?!

IRA HAUPT & CO.
Members New Yerk Stock Exchange
end ether Frmdpal Exchanges

MEMBERS NEW YORK STOCK EXCH.

and Security

San Francisco

Members of all Principal Exchanges
50 Broadway

Dept. Teletype: NY t-708

CANADIAN

Ceylon, Kenya
and Aden

and Zanzibar

—.——£2,500,000

OF NEW YORK

Direct Private Wires

London, E. C.

Fund

|

Scranton

Harrisburg

Bankers to the Government in

ESTABLISHED 1915

Albany

Troy

BROAD ST.,N.Y.

J. A. HOGLE & CO.

THE NATIONAL CITY BANK

PHILADELPHIA

BOSTON

BOND DEPARTMENT

Reserve

.

Bond Department

COMPANY

____£2,000,000

;.

Securities

BANK & TRUST

Capital

-YY

'"

INVESTMENT SECURITIES

Paid-up

Y;

,

Bonds

Mining

Established 1927

Chemical

Colony, Kericho, Kenya,

State and

UTAH

HAnover 2-3700

Branches In India, Burma,

Md., April 3, 1952.

x

U. S. Government,

.•

30

REGISTRATION—Underwriters, dealers and investors In cor¬

_

Securities

page

are

in

Municipal

on

Bunting delivered at McCoy College, Johns

Hopkins University, Baltimore,

Association, Chicago, III., February 19, 1952.

NOW

national defense.

our

afforded a complete picture of issues now registered with the SEC
and potential undertakings in our "Securities in Registration" Section, starting on page 41.

DEALERS

telephone:

tion essential to

businessman.

a

I know little about it.

Asserting military authorities, not business, are respon¬
sible for decisions that have delayed production of dedense output, NAM executive contends loss of jobs
through mobilization was caused by underestimates of
government officials of metal supplies. Lays blame for
high prices to inflationary spending and government's
false forecast of goods shortages. Says present problem
in many lines is not shortages, bat underdemand, and
scores government waste,
corruption, scare-baying and
unnecessary controls as hindering sound economic situa¬

you think I should forget it and devote my whole effort
directly to serving God by preaching His word?"

porate securities

Stale and

Industry Not Responsible for
Delay in Defense Ontput

40 Exchange Place,
115 broadway

105 w.adams st

new york

chicago

New York d, N.Y4

111 Broadway,
WOrth4-8000

Teletype NY 1-702-3

WHitehall 4-8181

N. Y. 6

Teletype NY 1-2708

Boston Tdephooe:

Enterprise 1820

2

(1490)

The Commercial and Financial Chronicle

Thursday,vArii41,ISi\lp52u
Hacihsim

TRADING

MARKETS

The

IN

Security f Like Best

Southern Production
3%%

A continuous forum in which, each week, a different
group of experts
in the investment and
advisory field from all sections of the country

Conv. Deb. due 1967

Southern

Production, Com.

participate and give their

Puget Sound Power & Light

reasons

for favoring

(The articles contained in this forum

Central Public Utility

This
Forum

5^/52

they

are

to

be regarded,

offer

as an

be, nor
sell the securities discussed.)

to

11

Week's

Participants and

Their Selections

■

*-

Thompson

particular security.

a

intended

not

are

Products,

Inc.

—

Parker

'

1

Bought—Sold—Quoted

,,

New York Hanseatic

Corporation
Established

1920

120 Broadway, New York

5

Teletype NY 1-583

BArclay 7-5660

parts, 15.8%; aircraft » Radio Corporation of America—!
and aircraft
engine components, 1 J.- C.V Luitweiier,
of
Bendix,
Auchincloss, Parker & Redpath,
Luitweiler
YY
&
New York City; Members of New York 56.0%. .V-Y
Co., New York
It is highly significant-that
City (page 2).
Stock Exchange and Other Exchanges
Thompson's sales of automotive
Newport Industries, Inc.—Everett
Thompson Products, Inc.
original equipment in 1951
in~%
TODD ALEXANDER

placement

Thompson Products has had

an

outstanding

Specialists in

Rights & Scrip
Since 1917

available market

in the past.

Members
New

New

120

York

York

Tel.

YORK

NEW

S

2-7815

REctor

a

Trading Interest In

„

small

tion to

American Furniture

/\.<;xander

of dominance with re-

products it

manufactures.

Apart from its.!important activi-'

Camp Manufacturing

ties in the automotive and indus-

Commonwealth Natural Gas
Dan River Mills

its contributions and

fields,

try

'

-

---*■

-

noteworthy.

particularly

are

This phase of its activities seems
to

SfftADER,TAYLOR & CO., Inc
Lynchburg, Va.
ED

TWX

39

LY 77

hold

the

portant

promise of very
additional volume

profits.

New areas of activity to
attention

which

is

im¬
and

being devoted

include

electronics, guided misatomic jet propulsion.
and
accomplishments are grounds
for confidence in expecting profsiles

Past

We will buy

itable

from

returns

such

new

activities.

MUNICIPAL BONDS
,

r

of any

the

locality in

United.

LEBEINTHAL&CO.
B5

BROADWAY, NEWYORK 6,N.Y.

REctor M737

•

Products

too

are

numerous

to

list1 but, to mention a few, they
include valves, pistons, bearings,

connecting rods, knee action assemblies, pumps, compressors, jet
engine blades and turbine wheels*1
arid a myriad of other parts or

States

{Oldest House inMUNICIPALBONDSJ
America Specializing in I
ODD LOT

Every

components.

well

known

market for

vast

parts;

warehouses

re-

are

""

serve

over

6,000 wholesale jobber stores.
Research

1949

practical

1950

1951

$2.51

App. Price $13
Memorandum

per

on

—on

is

the

on

production

as

the

gpal of all research and development—and this has led to constant

Share:

growth.
cludfe

$1.53

emphasis

Recent developments in-

a

simpler,

$3.04

lighter
weight, ball joint suspension assembly for front wheels which

Share

first apeared on the 1952 Lincolns,

request

new,

and

which will be used

and

Mercury's and possibly other
in 1953; also, a coaxial switch

cars

Fords

on

MARKETS

IN

UTILITY STOCKS
/

Direct Private Telephone
to New York

CAaal 6-1613
1. B. Maguiie & Co., he.

VfefcribefsNst'l Assn." of Securities Dealers
Ino.

Milk St., Boston 9, Mass.
Tel. HUbbard 2-5500

.

Tele. BS 142"

UNION TWIST DRILL

the

common

Information

to

son's

50th

Anniversary.

Started

with initial capital of
ohly $2,500,
29 emnlovees anrl 3 rn<?tom'cr<5 Ax/hn

by the second
000

worth

of

year

took only $40

CA

N.

.

business, the

com-

has $57 million of percapital represented by $15

million 3y4% debentures

93,053 shares of $100
rriulative* preferred

lMHk

shares of

due 197U-

par

4%

cu-

'

and

stock

common

stock;

19,000 employees;. 6^)00 customers

toe.ri95t,?Lnbr^^tS^l;
of

$195 million

was

as

Ibtirs: autbthotive, marine" ah(f
dustrial, 28.2% ;■ automotive

:

Teletype BS 259

Telephony

WOrth

4-5000

^

1951,

as

in

that

of

Kingwood OiL
Interstate Power
James C. Luitweiler

thel.054stocks

$2.5

$16.3

one-third

1944
1946___
1947
1948__^_

37.6

99.4

137.0

gregate advance

1949____

listed
Total

the

on

Exchange

York

New

two-thirds

declined,

the

was

8.2

09.8

32.0

99.7

62.4

37.1

99.5

58.9

50.7

109.6

75.1

51.0

126.1

85.8

109.1

194.9

it: the Electronics Industry.

Total sales in 1952 and 1953

are

estimated at $270 and $330 million

ask the ques-

prefer to

Gekstem & Frenkel

tion, what industry is least likely
to
be
affected
by the over-all

Members

disturbed

business

Tel.

situation?

And

and

have

I

political1

150

1955

the

0f

Air
a

Force

Increased

buildup

high level of

very

beyond 1953.

taxes

in

195I

pre_

vented net inrome fronvinrre-isine

25%

high and

to

all_time

new

45% higher than the

was

in

$6.67

capitalization.

$g.5o'

the

on

rates.

basis

Dividends

the

of

rate

should

at

better

of

present tax

$2

per

increased

be

than

being

are

paid

share

and

when

the

financial requirements of the rap-

idly

growing

volume

taper

off

above

estimates

to

$4.0

over

$1.9

increase

in

after

are

million

depreciation and

in

in

charges
for

1952

1951,

vs

The

earnings is sub-

stsntially greater than the
increase

to
The

amortization

million
cash

begin

extent?"

some

in

net

company's dividend

-

on

wheels"

and

Iast half of tllls century'

esti-

earnings,

paying abil-

,

.

One did not have to be

an

Bought—Sold—Quoted

qAllen & Company
30 Broad St., New
Phone

HA 2-2600

.

.

clearlY defined probabilities of
substantial increase in sales,

1-1017'

bombBut we know the significance of

Placer Development,
Limited
LEAD—ZINC
TUNGSTEN

war

and- that,

winning
without

a

earn-;

.

f^om air attack.

request

SEATTLE
Teletype SE 105

ELlot 3040

We know that

taking the places of thousands of
mathematicians as counting" maand are contrdlling ihdus-

distinctly. These probabilities, to- red ray equipment to enable solgdther with thfe" cdmpany's recent
ie

approach Wother

on

GOLD

1006 SECOND AYENUE

N. Q. B.
...

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
^

,

and

•

we would be defenseless today

and dividends
Few
comoperations better than huaivmenas. rew com man hands.. And now we have
PameS share ln thls probability so television, guided missiles, infr'a-

entry into the electronic field

OIL

John R. Lewis, Inc.

radio"
We have an idea that radar
had much to do with the
of the last-

■

Analysis available

ings

its

NY

T~

eyes are
opening
and
closing doors; that little tubes are

*

Thompson Products, there are

•

York, N. Y.

Tel.

.

electric

itv

'

—

in-

terrial 7 combustion
engineer
to
foresee, 40 years ago, what the
automobile was going to do to the
country and for its people. Nor
does one bave to be a scientist to
foresee what electronics is likely
to do to our lives in the years inl¬
mediately ahead. Doubtless most
of us know as little of the intricac*es °f electronics as we do of
nuclear fission and the atom*

it improves materially the it,

and

-

CANADA

present

Earnings this year
1953

"nation

,to maturity I be-.
electronics will ma e t e

be conservatively estimated at"

can

$7.25, and in

at

on-the

1950

7*.

the automobile make

■Jvithln. a Sln«le generataon grow

World War II- peak- Earnings in'
1951 were $6.20 per common share
vs.

COMPANY OF

The flrst half of the 20th

us-a

: New York

Tel. NY 1-1932

SUN LIFE

roads over our whole vast terri-saw

Security Dealers Assn.J

ASSURANCE

of the 19th century saw a tremendous expansion of our counY
try because of the spread of rail-

century

Y.

DIgby 9-1550

It is curious how America's life,
almost from the start, has been
dominated in each half century by

tory-

N.

Broadway

answered

respectively, although the company's official goal has been set at some one over-shadowing indus$350 million.
The stretch-out to" trial development.
The last half
should insure

request

on

ag-

15%. For this

61.6

I

*Prospectus

advanced,

and

i

Stock

67.7

reason

Rights

Western Leaseholds, Ltd.*

'

the

Now r teIleVe

all"these

in-

consideration.

on

s

>

.

35 Industrial Stocks
BOOKLET

ON

REQUEST

things

re*"

Continued

.

12-Year Performance of

"iufh-button^a«e

new "elds of; endeavor, make it will go ahead vigorously whether
worthy of most serious investment 3 Democrat or a Republlcari occu-:

fol-

7-0425
Y.

Commonwealth Gas Corp.

be

Aircraft Engines

-

pany now
manent

request

on

148 State St;, Boston 9, Mass.
Tel.

change,

will

e

record,

(in millions of dollars)

mated

Portland, Me.
Enterprise 2904
VkkrWfrd^Cimh. Enterprise 6800
sales
Often End Phone^to Now York Canal €-l6lS:




year

$13.8

N.Y. Phone

TRADING

'

This

Aircraft

WOrth 4-2463

1951 marked Thomp-

offices

Y

industry.

is-promises

SALES

1939

2-6190

year

branch

our

J

Radio Corp of America
security I like best for the

Aircraft and

Liberty

ACTIVE

selected

Other than

dered metallurgy are also believed

"The

to

Electronics

1944.

year

only

ties.

wires

any

phone equipment. Significant developments in the field of pow-

interesting possibili¬

4, N. Y.

1952 because of its prominent

year

industry generally was not making; yj

75 Federal Street, Boston 10, Mass.

to have very

Exchange

NY 1-1557

of

the

^hich the aircraft manufacturingrapid

0f

INCORPORATED

Curb

LUITWEILER

significant to note below the subr
' f u 11
0f
stantial growth of its business out-" c r 0 s s
c u r.
side aviation; also, its growth in
renis
fraught
sales connected with aviation from w j t h uncer194-3 through 1949, a period during
tainty
and

that has wide application in radar,
television and long distance, tele-

Dayton Haigney & Co.

York

HAnover 2-0700

Corporation of America

stock
as

is tied to the
Nevertheless,, it

effort.

crease|

the

of

-

Earnings per

of
pe¬

biggest growth envisaged in

dence

marine

New

willt^siti~0n.in

sa]es for the company

bus,

and

located in 24 cities and

STOCK

Members

25 Broad St., New York

Birmingham, Ala.
Mobile, Ala.

1

have

I

Y

/

truck, tractor, airplane,
or
industrial engine
Thompson parts as original
equipment. This fact is ample evicar,

carnes

placement

COMMON

Members New York Stock
Exchange

-

noteworthy progress. Shown fortunate in¬
growing position in the field of for comparative purposes are sales deed if at its
wartime
components for the aviation indus- i°r 1939 and the peak wartime;-c]ose we can
trial

"

Life Insurance Co. of Va.

Radio

age

an

necessary.

defense
1 odd

Steiner, Rouse & Co!
New Orleans, La. -

New York City
Members, New York Stock Exchange
•"

un-

the next two years

spect to the principal

Industries

1950

The

the

one

reaching

are

C.

;

t

University

Bendix, Luitweiler & Co.,
,

-

great number of the

a

become

from
posirw*

company

J.

where
repairs and parts replacements

years

brought

Bassett Furniture

riod

relatively

few

,

cars

an

»

.

Direct

result of lower automo-

a

precedentedly
large number
produced in the postwar

re¬

gineerimv
efforts, has in
a

a

undoubtedly

are

,

as

because

e n

Exchange

Curb

BROADWAY,

and

bile production, sales to the; replacement market should increase

search, devel¬
opment

Exchange

Stock

products

Duke

7

demonstrated

1952

ex-

tensive

New

1950.

Professor of

(page 37).

responsible for this fine showing.
While such sales may decline In

A

able and
aggressive
management,
basing its ac¬
very

on

from

Associate

Economics,

15%

off

was

it has realized

•

-

tivities

McDonnell &fo.

mobile production

ability to continu¬
ously capture a larger share of the

-

J. Mann,

creased despite the fact that auto-

growth
record
and
its sales
and
earnings prospects
through at least 1953 far surpass
anything that
•*'

\.

Louisiana Securities

Todd

Alexahder, of Auchincloss,
& Redpath* New
York
City (page 2).
\

to

iq

page

37

,

*

Incorporated

46Froiit Street

Newfdr4,N.t

Volume

175

Number 5106

»

.

.

The Commercial and Financial Chronicle

(1491)
*

Government Relations to

INDEX

llCHIEIMIH

"

The Central Bank
By W. W. CUMBERLAND*
1

&

*

Co.

■■

r

,

Have Faith in Our Capitalistic

-

Systemf*

'•

Hughston M.^McBain___

I

1

i

i

.

based

be

no

satisfactory fiscal

structure unless

Government

gold convertible currency, a sound and not burdensome tax
system, and a public debt which is reasonable in
amount and largely funded into
long-term maturities, former

■■

on

head of Persia's Central

-

•

for

credit

earlier

many foreign

the

United

countries

States

years

looked to

for

**

assistance

in their

States

'

Airlines—John H.

Some Observations
—Leland
A

having and deserving the be¬
•

Cobleigh

Hex

Federal Monetary
Authority—Open Door
—Walter E. Spahr_.

We Can Have

—Arno

v-

are

H.

to

11

Young_L

Strong Defense With Higher Living Standard!
Johnson

During
decade

of

greater

the

top-heavy
which

nomic

eco¬

well-

being
was
made 'by the
world

as

W.

Cumberland

W.

whole than during any

a

public

debt,

much

of

was
represented by shortobligations. It is not a pretty
picture for a country like the
United States, which for decades

term

prog¬

in

and

the

twenties, when
ress

they
currencies, ex¬
ill-placed taxes, and

inconvertible

cessive

other similar period of

time, Pro¬

fessor E. W. Kemmerer of Prince¬
ton University was recognized as

-

Schering Corp.*

14

Tennessee Gas

place to probe into the

nor

and currencies of

countries,
also
issue
I,

in

and

which

central

discount.

of

one

of

many

established

some

Professor

causes

of

' \

,

:

ernment

I

Kemmerer,
years

of

*

actual experience in the problems

tive

maintain

credit, fiscal policy and
policy.
Statements in the
should

be

ernment

cept

as

they

convertible
tem

which

based

are

into
is

has

that neither

independent,

or

a

which

areas

are

of

so

not

ex¬

Mutual
;

on currency

a

tax

sys¬

in

onerous

the

*

aggregate
and
which
tends
to
stimulate savings and investment,
if necessary
at the expense of
burdensomev consumption,
and

gold

reserves

committee

Debt
tee

General

on

Management

on

the

Credit

of

Economic

for

the

the Sub¬
Control and

Joint

gold.

Observations—A.
Reporter's

Wilfred

have

specialized in

____!

■V"V '

+.

,::.c

•

Prospective
Public

-

Security

"v*;

v

•;

have

lost

patience,

Continued

on

.

Offerings

:

\

24

Salesman's Corner

Tomorrow's Markets

*Mr. May is

Boston

•

26

Private Wire to

•

(Walter Whyte Says)

38

Dictograph

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records, corporation

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by William B. Dana
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1952

as

1942,

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REctor 2-9570 to 9576
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DANA

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and

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COMMERCIAL

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•

Di-Noc

covering the International Economic Conference

TELETYPE N. Y. 1-5

•

*

48

Thursday, April 10, 1952

LOS ANGELES, CALIFORNIA




Collins Radio

5

-

ST., NEW YORK 4, N. Y.

Chicago

Baker-Raulang

2

in Moscow.

,

Exchange

*'

41

_

Washington and You

The

Members New York Stock

•

Air Products

22

'The State of Trade and Industry
■

25

Albany

26

_.

The Security I Like Best

PREFERRED STOCKS

Spencer Trask & Co.

1-1826

45

Securities

Securities Now in Registration

and

page

Exchange PI., N. Y. 5

.

owning United States Government
bonds

40

18
"

..

Utility

"Securities

are

Commit¬

TELEPHONE HAnover 24300

HA 2-0270

47

Governments

Our

WILLIAM

BROAD

Singer, Bean
& MACKIE, Inc.

20
*

Reentered

25

American Hardware

May

Report..

on

Published Twice

For many years we

40
36

Railroad Securities

ample.
Our
population is becoming increas¬
ingly angry in regard to irresponsible money which penalizes the
thrifty, the savers and the con¬

Report.-

and

Teletype NY 1-1825 & NY

,

.

prepared

Alfalfa

Dehydrating

*

[ public debt which is reasonable in
structively minded. Persons with
!amount, funded into long-term
savings bank accounts, insurance
maturities for the most
part, and policies, pensions or even those
r'*A statement

National

16

8

Our Reporter

other

important in

to

Kerr-McGee Oil

17

.____

Bargeron

NSTA Notes

Our

currency.
Condi¬
tions in the United States
justify

return

8

*

convertible

immediate

-■___

Funds

News About Banks and Bankers

producing a wholesome and ex¬
panding economy is solidly based
on

Associated Development
and Research Corp.

long 1

can

these

8

22

.__

;

Indications of Current Business Activity

gov¬

the Treasury and the cen¬
bank,- credit
and
discount

each

satisfactory

gold,

___________

Coming Events in Investment Field

■

amply
a

currency system with¬

on

country,

48

From Washington Ahead of the
News—Carlisle

out depreciation.
There is little
point in discussing relations be¬

tral

the part of gov¬
there can be no dy¬

and

__i_

Einzig—"Britain's Declining Foreign Trade"_

Economy policies, management of the pub-"
lie debt or an equitable tax, sys¬
judgment and tem unless

namic economy for a

Angeles

18

Shelf

I Dealer-Broker Investment Recommendations

Dynamic

fiscal structure

Los

Cover

*

tween

judged by that background.

To the best of my
belief there can be no

(Editorial)

Canadian Securities
_

treasury nor a central
bank, whether the latter be cap¬

of money,

-

See It

Business Man's Book

Gold

on

experience

currency,

under

of

As We

6

1-3370

Direct Wires

Bank and Insurance Stocks

Our present task is to point out
the constructive measures which

and

Essentials

Teletype NY

Philadelphia and

-

U. S. Should Go

:

ing

memorandum

Broadway, New York

*

predicament.

demonstrated

debt

61

r

Regular Features

the

cordingly, I consider that I had
the best possible theoretical train¬

present

21

of

ples of money and finance from need to be taken and which are
him, but I also am one of the few readily available to persons with
Americans who has actually been technical knowledge of the sub¬
in charge of the finances and the ject, courage, determination and
currency of certain countries. Ac¬ patriotism. Without a convertible

several

Request

J.F.Reilly&Co.

17

Way It Is (Boxed)

BO 9-5133

am

Kemmerer's

Professor

the

Standard Now

only

students, and learned the princi¬

have had

Member

on

he

banks

Not

30

17

SEC

as

*Prospectus

the

short-sighted, igno¬
the leading "money doctor" of the rant or untrustworthy leaders who
world.
He
placed
our
country in its present
reorganized
the
fi¬

nances

14

Court Upsets Judgment Against Otis & Co

That's

present humiliating and dan¬
gerous status nor to apportion the
to

Texas Eastern*

19

Assails Administration's Credit Policies___

our

blame

Transmission

Incorporated

has been noted for its competence
in currency and financial matters.
This is neither the time

Taxes—Roger W. Babson___;

Clarence Adams Confirmed

Corp.

13

How to Reduce

had

confidently look forward to

Gas

-

How Stocks Have Fared Under
Eroded Dollar—Sam Glasser__

Hence this country

WHitehall 4-6551

Commonwealth

12

countries have suffered when

'

friend

Natural Gas

Dictatorship

the experiences from which other

af¬

a

right" well!

Colorado Interstate

10

may

financial

sell

WALL STREET, NEW
YORK

Telephone:

'

of

to

as

9

the Monetizhtion of Federal Debt
Robinson
on

The Importance of Agriculture in the
Economic Picture
:—Lloyd C. Halvorson.
:
;______ 15

own

to

6

United States.

ability

did

we

us

Obsolete Securities
Dept.
99

5

Lewis

The Railroads Can Be Rescued—Robert
R.

*

all being;,,
violated at the present time in the

has

4

Sawyer^

Derricks in the Moose Pastures—Ira U.

lief of the population that it will
be paid.

Unfortunately, these

regards

'

Resources—Eugene Holman_____^_______^

strated its lack

fairs.

i

I

I

^

now

By him

3

amply demon¬

handle its

-

Cumberland

Outlook for the

*

United

He

Central Bank

..

t

Who had obsoletes

-

.

Without exceptions, those counmonetary, fiscal and debt
problems. This
tries which required financial ad¬
is
no
visers had failed to meet one or
longer
the case, since
more
of ' the
foregoing criteria.

the

'

Where Are We Headed?-—Hon. Charles

-

Holds there is no such thing as
independent central bank, and calls
to act moderately in
fulfilling their
responsibilities.
both

A STRANGER

_______l_Cover

or

happier

PHONE CALL FROM

:

•

reserve.

institutions

and

W.

.

,

*.■

In

W.

Relations to the

Our Inexhaustible

-

Bank, contends present task is to
bring about these objectives. Says adequate gold exists in
U. S. to permit a convertible
currency and decries fear of for¬

eign raid on our gold
independent Treasury

.

,

1

can

Page

'

■

Contending there

<

AND COMPANY

Members, New York Stock Exchange
' v
' \4 u *'
Member, Economists* National Committee on Monetary Policy

j

Articles and News

Industry Not' Responsible for Relay imDefense
Output'
^
—Earl Bunting ________i
i_z_____________Cover

t

1

>

•

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,

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>

Ladenburgr, Thalmann

i

,

"

Partner,

3

s

Record

'

—

'

Monthly,

(Foreign postage extra.)

account

of

the

fluctuations

in

the rate of exchange, remittances for for¬
eign subscriptions and advertisements must

be

made in New York funds.

Bought—Sold—ed

year.

THEODORE YOUN
40

i

& CO.

Exchange Place, New York 5, N, Y.

WHitehall 4-2250

Teletype NY 1-3236

'

The Commercial and Financial Chronicle

(1492)

i

the

In defending his concept

that our raw materials resources are
inexhaustible, leading oil producer executive reviews steps in
use of mineral products and attainment of better and cheaper
methods of discovering new sources. Cites expanding sources

Calls attention to

to

want

talk

about

"wasting"

resources

oncerning the quantities of nat¬

haustible"

resources.

ural

It

use.

is

higher

and

risers

What I want

for

concept

a

of

oil, used it all up, and had a
left.
The wisdom
of optimistic men in our profes¬
sion, like Wallace Pratt, is becom¬
ing daily more evident.

how to get more of the oil

reservoir

the

after

Since 1935

located.

feature in

it

Muscat

ris

M.

Dr.

of the

W.

Vietti

Company,

of

it.

before

one

The

reservoirs

of

the

Middle East type, where the water
table is

The

X'!,

"\o;

earth

«in'i the

for

needs

the

a

quick glance

mission *

record. It shows that from earliest

g e o

times

materials

man

These

life.

have

men

drawn
.

It

ress.

natural

in the past—
but
in other words, let's look at the

of

civilized

-materials have

with

at material progress

practicing
1 o gists,
simply, stated,
is to help find

Eugene Holman

Let's begin

in-;

earth.

the

from

minerals

used

And

we

will

not

result

for

resources

less,. because

in

men

it

more

to

use

the

retards

march of scientific knowledge.
Now it goes without saying that
I

do not advocate reckless squan¬

You

see

this fear reflected in the

also

by

improved

prac¬

,

New

developments

of

ence

refining

in

the

make

sci¬

possible

better products. This fact, coupled
with improvements in consuming

larger dering of natural resources. What
I do advocate is true conservation devices, means that we can get
greater
—which is not hoarding but effi¬ more work from a barrel of oil
quantities, has progressed by a
cient and intelligent use.
today than we could previously.
kind of step-like process.
Increasing knowledge operates And I think we've only begun to
Let me enlarge for a moment on
that the availability of

see

of

numbers

minerals,

in

vitally important
; place in the pattern of human ex¬
in a number of ways to expand
istence,
and
people
frequently the picture of progress by a series
the natural resources available to
fear that they are going to run of steps, n';.
;
us.
It helps us to discover new
out of one or another of them.
Another group of scientists who
a

creased

tices in its transport and handling,
which cut down losses.

delve in the earth—the archaeolo¬

of materials which

sources

we

are

the*energy potential in

use

bar¬

a

rel of oil.
Not
sources

the

,

,

the

instruments

which

edge

the

and

enabled

knowl¬

to

men

use

certain of the softer metals, espe¬

supports

terials
cient

by developing
methods

of

effi¬

more

use.

Improved

heating units, turbines and inter¬

cially copper and tin. Humanity nal combustion engines are cases
then stepped up to the Copper and
in point here.
More knowledge
Bronze age.
Now man had more helps us work out means of
using

tools

and

more

serviceable

ones.

He could fell trees faster and thus

have
and

buildings

more

vehicles

more

transport.

could

fore
As

wanted

s
all

or

the

majority shares

in sound So.Calif. firms

PRIVATE INVESTORS

makes

the

it

in

exist

discovers

new

or

materials that

nature,

such

as

plastics.
New

equipped

men

with

work

and

of

may

course,

displace

the

learn how to
Such devel¬
would prob¬

increase

the

would

total

fuels

thus

them available for other

effect

construc¬

fossil

applications,

overall

which

in

making
The

use.

be

to

amount

agaift
of

en¬

available to humanity.
Incidentally, in connection with
atomic
energy,
two news items
which I recently noticed have a
bearing on our subject.
ergy

widely than be¬

more

the earth.

over

not

do

And

entirely

example,

in

to

power

harness solar energy.

some

for

as,

industrial

already learning how to

opments,

Sources

of

Petroleum

I'd like to

expansion

tons

last

out

than

more

And, to
meet our new needs, we plan to
step up our domestic production
of

^

(which

copper

about

1,200,000

year.

last

year

tons)

was

225,060

by

tons, of zinc by 230,000 tons, and
of aluminum by 700,000 tons.

Can

we

proved

of

increased

will

fuels

true of metals?

has

what

that

say

true

We have

knowledge

prove

seen

has

that

led

to

the

discovery of new sources of
energy which are seemingly un¬
limited.
come

Does

comparable out¬

a

likely with respect to

seem

metals?
The metals we use most

iron

today—

aluminum—are

and

second

only to oxygen and silicon in their
abundance on our planet.
It has
been

estimated

least 5,000

the

as

at

much iron ore,

as

bauxite and alunite in the
crust

is

there

that

times

world

earth's

uses

now

an¬

nually. Furthermore, unlike fossil
fuels, most metals. can 4 be ' re¬
claimed after use and used again.
New

Sources of Metal Supplies

In the meantime,

of

new

the discovery
metal

of

sources

supplies
techniques

for

making

economically

them

available go on at a rapid pace.

It wasn't

long ago that people

so

worrying about imminent
depletion of the 50% iron-ore de¬
were

posits of the Mesabi range.
a

number

planning
timated
ters of

steel

of

or

to

in Minnesota

strip,

and

dollars for proc¬

Taconite deposits

essing taconite.
mile

occur

5 billion tons. The

will

hundred-

a

miles

broad,

to? amount

to

reducing plants

about

out

turn

in

several

believed

are

are

building facilities, es¬
cost over three-quar¬

billion

a

Today

companies

one

of

ton

60% iron from every four tons of
taconite.
Rich

deposits of iron

been found in
tries
and

a

outside
are

now

have

ore

number of

United

the

coun¬

States

being developed, in

cases by American capital.
Labrador, Venezuela, and Brazil,
for example,
are
the scenes of
some truly epic engineering proj¬
ects. A 358-mile railroad is being
cut through wilderness and waste¬
land to haul ore from Ungava,
Labrador, to water.
At
Steep
Rock
Lake, Ontario, 70 million

many

enlarge a bit on these
bronze
tools
learned
more
and
examples, and their significance.
more
about the world, humanity
Take petroleum.
Only a few months ago it ap¬
stepped up again—this time to an
As you are well aware, a great peared
that the future use of
age of Iron. Now man began fash¬
many
new
sources
of oil have atomic energy for industrial pur¬
ioning a really formidable array
been discovered in just the past poses might be doubtful because tons of a lake bed are
of tools.
being re¬
He had new power to
several years. To mention only a of the problem of the radioactive
moved in
cut, grind, hammer and otherwise
a
four-year dredging
few, there are the Williston basin wastes. Yet only a few weeks ago
work materials.
He could handle
operation to get at an iron deposit
in North Dakota, the Uinta basin a
government
official
reported
masses of material with stronger
in Utah, and the Alberta fields in that the solution is in sight. What underneath. In El Pao, Venezuela,
levers,
wedges,
pulleys,
gears,
Canada, the Scurry and Spara- he called "atomic garbage" is ap¬ one of two
projects in that coun¬
hooks, eyes, and pincers.
In modern times the age of Iron berry fields in Texas, in addition parently on the verge of being
try has been completed after 14
to
fields
in
Central
Sumatra, employed in such a way as to be
has given way to the Steel age.
Ore has to be
Southern Iraq, and the Cretaceous not
just harmless but actually years of work.
And, within our own lifetimes
fields of western Venezuela.
In useful.
shipped by a railroad built through
there has been superimposed on
some
of these areas, geologic ex¬
the Steel age what we may call
The second story was about a jungles, and by barge to the4 sea
plorations had gone on for years new atomic
the
age
of lightweight
plant, called a on a river whose water level at
metals,
without any oil ever having been
plastics and atomic fission.
"breeder reactor" now in opera¬
found before.
In others of these
Continued on page 23
From the Stone age to the pres¬
tion in one of the western states.
ent so great a wealth of scientific areas, oil had been produced be¬ As I understand
it, the object of
fore, production had subsequently the
information has been amassed
process is to use uranium 235,
fallen off, then new horizons were
most of it in the past 100
which is rare and costly, to con¬
years
—that we now have tools and in¬ tapped.
„

Harry & Myron Kunin
"v

move

tive

but

usable,

are

an

structure

apply atomic

ably

not

scientific

men

materials which have been known

shelter titanium.

for

for

He could probably dig deeper and
fracture rock more readily.
He

and

steel

million

turned

we

familiar

raw
form of crude
already using and in the raw form
gists—have shown us that pre¬
that is currently useful to us. For petroleum, we will be able, when
trials geologists seek. Those ma¬ historic men used axes, drills and
and
if
it
ever
becomes
example,
new
techniques like the
necessary,
terials are often referred to as other implements made of flint
airborne magnetometer help us to to
derive
liquid
hydrocarbons
and other hard stone. With these
locate
oil
fields.
New
from
oil
knowledge
*An address by Mr. Holman before the tools
shales, tar sands and coal
they were able to create
American Association of Petroleum Geol¬
also enables us to extract a ma¬ and
other
sources
not
used
at
which, in turn,
ogists, Los Angeles, Cal., March 25, 1952. simple societies,
terial we are already using from present.
•
made
possible the accumulation
raw forms which we were previ¬
of knowledge about the natural
Use of Atomic Energy
ously unable to process, such as
world.
iron from taconite.
It also ex¬
Finally, our present use of oil
The Stone age developed both
tends supplies of the familiar ma¬ and
coal

j..terms used to describe the mate-

metals

but two

Our

and the development of

only are we finding new
of liquid hydrocarbons in

build

to

production of 120 million

tons—15

and'

porous

a

program now under way calls for

of the Humble

highly

need

name

demand.

annual

Texas

Stewart Brickly
Company, has de¬
use of materials available in one
veloped ways of forecasting res¬
period — and
I
emphasize
that ervoir performance so production
word "use"—has supported socie¬ can proceed by the most efficient
ties in which men could accumu¬ methods. We are finding out how
late knowledge.
Such knowledge to get maximum yield from large,
the

on

at

before. Two world

unhappy

copper—to
in

Company,
the

metals

using

quarter century and the

a

great quantities of arms have used
unheard of amounts of iron and

Dr. Mor¬

Gulf

in

present

especially, the
engineering,
as

is

never seen

wars

been

.

dustries.

particular,
rate

science of petroleum

men

know, the world in

general, and the United States in

out of

has

important, as we are also
learning how to get maximum
yield from tricky, tight reservoirs.
times finds in connection with the Repressuring, water-flooding and
Let us consider whether under
thoughtful exconservation of natural resources other techniques of secondary re¬
amination by certain circumstances we cannot
will be crystal clear. This fallacy covery are also adding
greatly to
all of us who forget our fears and accept the
is the concept of conservation as the quantities of oil available for
notion of inexhaustible resources.
are in anyway
non-use. I am convinced that nonpeople's use.
connected
use results only in hobbling prog¬
The supply of usable oil is in¬
Steps in Mineral Progress
with natural
resource

As you well

bigger tankful

sparked by such

treads.

hu- to suggest to you is that the view¬
which point expressed in those terms
many, includ¬ "wasting" and "exhaustible" is a
then
made
new
quantities and
ing myself, partial viewpoint. It does not see
new kinds of material available.
believe in to the heart of geology or, indeed,
I emphasize the fact that people
very strongly to the heart of any of the activi¬
used
the materials available
in
in which man displays his
and which I ties
any period, so a fallacy one some¬
•
think
merits intellect.

available

resources

nan

"ex¬

as

as

history of material progress,
is that each step has been depen¬

dent

or

is

It

the

new sources

concept

a

incredible.

Another outstanding

"

I

was

progressively
narrower

of plastics.

use

Steel

almost

are

petroleum and kindred products and foresees prospects of
harnessing atomic and solar energy, which development may
uses.

for

age,

though the stairway of advance¬
ment was composed of steps with

of

and increased

Bronze

the

years;

years.

President, Standard Oil Company (New Jersey)

of metal supplies

lasted
years;

Iron age, 2,500
first made in '
Besides
commercial
learning more
about
quantities 95 years
ago; and the past 20 years have finding underground reservoirs of
seen
material developments that crude, oilmen are also learning
4,000

By EUGENE HOLMAN*

shift fossil fuels to other

and

Copper

age

thousand

Stone

hundred

several

Oar Inexhaustible Resources

The

it.

before

J

Thursday, April 10, 1952

I

it

_

| j 13 W. 8th Street, Los Angeles, Calif.

,

—

Established

1856

vert

struments

H. Hentz & Co.
Members

York

New

New

York

New

York

Chicago

N.

Curb

Exchange

Exchange

Exchange,
Board

Orleans
And

Exchange

Cotton

Commodity

New

Stock

of

Cotton

other

Inc.
Trade

Exchange

Exchanges

Y.j Cotton Exchange Bldg.

and

pound, cast and grind lenses and
that permit us to peer

find

GENEVA,

PITTSBURGH

SWITZERLAND




a

power

mirrors

farther than
ter and

before into mat¬

ever

into space.

We command

have built

more

of

accuracy.

duced

to

service.

our

A

is

electrons

notable

was

feature

of

the

pattern of material

that

it

geometric

has

rate.

proceeded
Each

step¬

progress

at

a

successive

age has been shorter than the

one

technical,

to

can

select where to

We

can
reach deeper
result, in the United
States alone, there has been pro¬

harness

of

We

success.

strata.

stream

and

We have developed

structure with better odds

a

chines to produce millions of glass
tubes whose miraculous contents
a

oil.

methods for locating and mapping
structures with greater speed and

ly being increased.

ma¬

dynamic oil industry

financial

both

drill

We have

a

we

have accumulated the means,

the strength of engines whose ra¬
tio of power to weight is constant¬

like
DETROIT

By producing and using oil

and preci¬
sion beyond all previous
imagina¬
tion. We have the means to com¬

NEW YORK 4, N. Y.
CHICAGO

of

As

a

since

1938

as

much

oil

as

known to exist in the country

time.
And despite that
withdrawal, the domestic
industry's proved reserves are at
an
all-time
high level.
It's as
though we started out with a tank
at

that

great

non

-

fissionable

which) are„abundant

materials,

and

into fissionable material at

than

rate

is

the

uranium

consumed.

One

of

cheap,
a

faster

235

itself

the

non-

fissionable materials they will use
is thorium, which previously was
used

chiefly

in

the

manufacture

CP 20.700%

Yes,

Now let

year

period, R.K.O. WAR*
the

above

percentage

(Curb)

WARRANTS

favorites.

speculative

were

WARRANTS move faster and

further than any other type of

security.

If you are interested in capital
appreciation,

considering mineral

resources.

4

showed

a

Oil, Tri-Continental and Atlas Corp. had
comparative rises. In 1951 Eureka Corp.

During the past few minutes I
ergy

a

$500 investment appreciating to
$104,000. The WARRANTS of Richfield

gain,

of mantles for gas lights.

have been

in

RANTS

us

en¬

be

sure

to

read

"THE SPECULATIVE MERITS

GF COMMON

look

\

STOCK

.

WARRANTS"

by Sidney Fried.

at the

It discusses

pass

phases—explores many avenues of their
profitable purchase and sale—describes

soft

picture for metals, if I may
from my familiar field of

rocks

geology.

into

that

There

some

those

now

use.

metals

of hard

are

elements and

45

rock

metallic

8,000 alloys of
in

commercial

current

For

Warrants in

their

different

opportunities in Warrants.

your copy send $2 to
the publishers, R. H. M. Associates, Dept. C,
220 Fifth Avenue, New York I, N. Y.
or
send for
free
descriptive folder.

Volume 175

Number 5106

.

.

.

The Commercial and Financial Chronicle

(1493)

•,/fr
Steel

The

Where Are We Headed?

Production

Electric Output

By

HON. CHARLES

Carloadings
Retail

State of Trade

Auto

Industry

Is

Secretary Sawyer reviews trends and developments of last 20
months as reflected by wages, prices, inventories and
produc¬
tion, and contends many divergent and cross-currents have

Index

Production

Business Failures

resulted
"i '

A

slight contraction

was

noted in industrial
on

a

par

production last

with the high level of

On the employment
-I

ro

front, declines

were

the

case

a

'*/" Holding

We have arrived at

settlement of the steel labor impasse was a blunt
early this week by Phil Murray, steelworkers' union
chief, of a new compromise offer by steel firms.
Mr. Murray
stuck to his guns that the union get "all or nothing" of the Wage
Stabilization Board's recommendations, states "The Iron Age,"
national metalworking weekly.

our

problem which faces us demanding a solution
involves

soon

groundwork for

as

contract settlement is

a

will not

be

much

so

as

steel

companies had

It will range around $5 a ton or

firms

*

what

an

worker.

had

loss

an

There will be

If

On

giving in

on

Mr.

Tuesday evening of this week President Truman ordered

midnight
tiled to take

April 8, one minute before the strike
place.
Editor.

on

was

sched-

A special industry-wide survey just completed by "The Iron
Age" shows why the steel companies keep insisting that higher

/^wages
must be compensated by higher prices.
4

-

.^

Of the 27 steel

producers listed in "The Iron Age" financial
analysis for 1950-1951, only nine reported higher earnings in 1951
over the
previous year.
Net income for the whole group was

.-off 13.2%.

the producers facing the prospect of still higher wage

With

>

and other
:
-

■f

''

good

many

first

glance.

of balance.

deadline

with

had inventories that looked

them

of

strike

anxiety.
A
comfortable at

But close scrutiny showed these stocks to be far out
Items in critical supply were expected to limit produc¬

production for high priority programs.

was

Steelmaking operations this week are estimated by "The Iron

the

In
"Ward's

automotive

industry, it is currently learned from
Reports" that a steel strike would not hit

Automotive

auto output for about a month.

a

Big producers, it states, can work through this month, despite
strike, by using inventories.
The full impact would not slow

assemblies until May, particularly for the makers of smaller

cars,

the agency added.
Last week auto production slipped about 4% to 92,275, compared with the revised figure of 95,967 for last week—the highest
4

this

':h

made in the year-ago

.

a

period of

unemployment—inflationary
This

at

World War II.

differed

situation

the

from

completely
us

pres¬

either present or im¬

were

sures

which

one

beginning

the

of

In other words, we

had little slack to take up in pre¬

paring
of

for

vast mobilization

the

which the emergency

resources

parent; it was obvious that some

Age" at 41% of rated capacity, down 61 points from the previous
week.
The rate is based on assumption that there will be a strike.

//.

in

rising productivity and declining

inventory of cold-rolled sheets because he had only enough bars
and forging stocks for a few days' operation.

The military
in line to get first crack at all tonnage as it became available.

i

When the Communists attacked
in Korea, we were

demanded.

of steel

„

has produced a series of
repercussions on consumer, busi¬
ness, and Government behavior.

tion, making it impossible to fully utilize items in heavy stock.
For example, an auto maker felt little gratification over his big

Compounding the consumers' anxiety was the huge hand of
government which was expected to snatch the continuing trickle

year.

K

The

>;V.

-

This

reason

week's

total

22%

was

below

the

118,638

for the

Inflationary
measures

was

Continued

the reduc-

on page

34

control

of

were

were

ap¬

needed

promptly. It was clear that
legislation was in order and

new

by Sept. 9 the Defense Production
Act was passed and signed by the
President.

Meanwhile, however, the results
had been feared began to

which

in¬

of

defense

in¬

and

because of
productivity per

partly

The
and

expansion

in

production
resulted
in
spite of in¬
Personal
savings

employment

higher

in

incomes

creased

taxes.

the

to

extraordinarily high
rate of 9% of spendable income
compared with an average of 4%
rose

our

situation,

present

trends in
calls ^for

reference to prices. Whole¬
prices had advanced from, the

some

sale

low

level of December, 1949. by
March, 1951, 22%. Since that date
they have slipped back. As of this
time, from that same 1949 base,

they

have

advanced

Consumer

12%
Some

only

16%.

remain
the^late 1949

about

prices

above

easing

of

this

Within

area

in¬

labor

19%; proprietors'

increased

food

prices has
they have
generally about 18% during
the past two years. The cost o'
living index, which became static
occurred

lately,j but

in

December

remained7

and

cost

more,

very

result.
the

As

as

itself

months

produced

wore

how¬

on,

the picture changed.

that

This should not mean, and does
not

that

mean,

income, 11%; dividends
plished
and interest, 4%, Currently, the

our

we have
objectives, that

We

have

an

opening

in

our

St. Petersburg, Fla., office for

experienced securities salesmen.

Close cooperation of

oughly experienced organization in building
excellent

a

a

clientele.

thor¬

An

has

There

been

an

extraordi¬

however, reason to be pleased, if
business outlay for new plant not satisfied, with what has been
and equipment between 1945 and
accomplished.
1951—$117 billion. The outlay for
It would not be proper to de¬
manufacturing concerns alone has scribe our

nary

totaled

$54 billion.

It is reassur¬

than

the

utmost

years

old,

the

Except

for

steady
our

strides in

defense

the business pop¬ atomic bombs. In June, 1950 an
since the attack upon us would have earned

for seasonal varia¬

tion, the business population

the

the

prospect of ultimate def^nt r?
aggressor.
Today it wotild

carry the
and. day

certainty of his defeat
day that deterrent

by

grows.
There has been vastly

increased

military production for our de¬
fense, deliveries have doubled dur¬
ing the past year and will double
:

has

Continued

on

page

Partly

a
result of greatly in¬
production which sent a
flow of goods to final users

as

hudson's bay co.

opportunity to profitably enjoy living in Florida.
i

Eisele &

provided substantial additions
to inventories, great shortages of
consumer goods
did not develop.
As a result of the heavy buying

Ordinary Shares
'

>

MEMORANDUM

ON

,

REQUEST

just mentioned, retailers in many
found

cases

themselves

Serving banks, brokers and security

over¬

dealers

of goods,

deeply in debt, and a large
a smaller volume of

some

number with

.

liquid assets.

King, Libaire, Stout & Co.

The

buying

waves

of

these

Albert de Jong &

Go.

'

ESTABLISHED
MEMBERS

OP

NEW

YORK

months

1868
STOCK

EXCHANGE

50 Broadway, New York 4, N.




HANOVER

2-6684

1T.

the

furnished

reason

sumer

for

the setting and

the

reduced

which

buying

con¬

37

WALL STREET

.

occurred
Telephone HAnover 2*5590

address

by Secretary Sawyer

the Economic

Club of Detroit, De¬

♦From

before

troit,

an

Mich.,

April 7,

1952.

upon

country

began in Korea is negligible,
both in size and in turnover. The

1950.

made

land, on the sea, and in the air,
and in particular in the field of

The change in

of

hardly describe it
preparedness. ' Since then

a

bilities.

ulation

of prostration,

one

as

could

of

fact of we have
significance in con¬
preparing
our production possi¬
the

six

nection with

1950

we

as one

less

condition in

military

June,

ing to know that two-fifths of our but
current stock of fixed capital is

creased

stocked with many types

we can

relax and lapse into the state of
national product is running
complacency which was character¬
at an annual rate of $339 billion,
istic of the period following World
the increase during the first quar¬
War II. At any time a new emer¬
ter being accounted for wholly by
gency may confront us—either at
Government purchases of
goods
home or abroad. Something may
and services in connection with
happen to change the programnational defense outlays. Personal
drastically and rapidly.
All-out
income in the first quarter 1952
war is still a possibility; a period
increased only
about $1. billion
of
prolonged labor strife could
from the last quarter of 1951.
change the entire picture. We have,

result of direct controls and

a

partly

accom¬

gross

and

PETERSBURG, FLA.

sc

during January, slipped back to z
figure slightly over October7 by

and rental

happen. The initial reaction after
war began in Korea was a sharp
number of retail and service firms
increase
in
demand
from
all
declined slightly, while all other
sources
which continued through
industrial segments increased.
It
the balance of 1950 and the first
is interesting to note an increase
quarter of
1951. This demand,
of 2% in manufacturing, repre¬
generated partly by anticipation
senting a reversal of the down¬
that goods would be scarce and
ward trend evident from 1947 to

record

OPPORTUNITY IN ST.

level.

in the

war

ever,

drop, according to "Ward's,"

dangers

—and

cars

week.

Price Trends
An analysis of recent

risen

1950.

program

faced

the

outside

increasing

come

It is clear that the rearmament

optimism.
faced

the

build-up,

,

Repercussions of Rearmament

minent.

consumers

•

.

costs, this trend is expected to continue in 1952, unless
price increases are allowed to compensate. At the moment, the
government stand on prices leaves the industry little reason for
Steel

"'

the end of
February./7
1
4/1
Returning now to my analysis of
previous postwar years. The the trends and
developments of
imposition and relaxation of con¬ gross national product for 1951
the last 20 months as reflected by
trols, all present these questions. amounted to $328 billion, an in¬
Furthermore, we have arrived at crease in dollars of 16% over 1950. wages, prices, inventories and pro¬
duction, it is fair to say that as of
a point in our mobilization effort
The real gross national product
the moment the many divergent
which could not be described as for 1951 increased
by 8% over and in some cases
strong cross¬
the end of the beginning nor the
1950, contrasted with the long- currents within our
economy have
beginning of the end but from term average annual increase of
resulted in relative stability of to¬
which we can, with advantage, about
3%.
tal output, employment and prices.
review both the retrospect and the
Personal income was $251 bil¬
prospect.
lion, or an increase of 12% over
No Grounds for Relaxation V
,

survey

>

and

aid,
the tempo of
military

Charles Sawyer

..V

Significantly, the

shows that higher taxes and operating costs (with no price
increase) sent steel industry profits into a tailspin in 1951.

it.

foreign

impasse will probable
hours plus 5 cents to 7 cents in fringe

no

'? seizure of the steel mills to avert a strike of 600,000 steel workers.
£1 The order directed the
government to take over the mills effective

..

will

upon

taxation

■

the union shop by steel
Murray gets a good economic package he may
4.
eventually give up—for the time being—the union shop.
A turn
<4 for the worse this week or next will take the dispute to the White
it
House, "The Iron Age" states.

V

and

The extent of

firms.

-

have

approach 1,000,000 tons.

benefits.

succeeding months,

resources

policies
have

approximate 15 cents
«

the

the

Eventual settlement of the steel labor

•

effect

attempt to forestall the taking over of the industry by the governBarring a last-minute miracle steel loss this week will

rof 2,000,000 tons a

In

Government

ment.

a

responsible for the
subsequent systematic policy of
inventory liquidation of consumer
goods.

some

was

ventories

perhaps slightly more, this trade

mean

after the first quarter of last year
and which

Meanwhile, there has been a tre¬
stood, what it mendous increase in output, partly
can stand, and
because of the intensive use of

asked for publicly.

Thereafter, a shutdown will
week.
"
7 ''r I''
1

time remained steady a.
about four million firms.

dustries have ceased to grow and
in some lines have been reduced.

and

prospects
—what it has

The amount

expected this week to go into court in

were

Conference.

j
for

economic

journal asserts.'
Steel

our

its

reached

'

steel firms expect the steel price angle to be settled.

Economic

strength

...

As

time when

a

economic situa¬
tion is in order. Practically every

up

covering the International

we adhere to
present policies. Says defla¬
beaten, and advocates close study of economic
trends by government agencies.

appraisal of

turndown

week.

also be

can

for the ninth

year ago.

this

fear inflation if

not

tion

consecutive week in claims for unemployment insurance benefits,
which dropped 1% below the previous week, but were 30% higher

than

no

omitted

A. Wilfred May is in Moscow

economic

stability. Says this situation
ground for relaxation or complacency. Holds
have. produced beneficial results and we need

direct controls

a

U year earlier.
However, overall output remained about 10% under
'.'vfthe all-time record attained during World War II.
~

relative

in

should be
jyeek, but it continued to hold

"OBSERVATIONS"

Commodity Price Index
Food Price

and

SAWYER*

Secretary of Commerce

Trade

NEW YORK 5, N. Y.

Teletype NY 1-1401

24

6

The Commercial and Financial Chronicle

(.1494)

timate

Outlook for the Airlines

tions
of

Senior Partner, John II. Lewis &

Co.,

per

President, John H. Lewis Fund, Inc.

after taxes.
and reveals

Gives data

terms

in

increase

the

and in

1951

28.6%.

for

revenue

the

outlook for individual companies,

growth of airline industry

as well as its increasing
freight carrying potential. Notes trend to heavier operating
expenses, but foresees heavier passenger and freight traffic
as offsetting forces.
V

will show little or

no change. The
profits tax position of the

excess

growth

various

in

passenger

companies in this indus¬
try differs importantly. This lat¬

traffic

ter

will

continue
boost
ger

to

railroad

passen¬

Airlift

Mail pay may
not be greatly

each

this

Freight

annually

H.

Lewis

increase

will

65%

to 70%.

We

annual in¬
through

the 74-cent level

which prevailed

in 1947, when the

industry had its

of 28.4% from 1933

1941.

It

would

probably

be

too

worst

be

moderately.
from these

likely to inAdditional

sources

must

rising cost of operating

airlines and the cost of operating

plane miles that will

be flown by reason of the increased
size of fleets. The operating costs

hiphpr
nigncr

rpflprt
reflect

placed

was

nilot nav whirh
pilot pay, wnicn

in effect

during last
lines, sympathetic
increases in wages of other em¬
year

on

many

ployees and further
costs

due

to

the

increases

usual

in

escalator

clauses

in many labor contracts.
additional Federal gasoline

The

tax of one-half cent
be

a

a

consequential

gallon will

amount

higher depreciation based

and

the future would

that the

assume

assume

that air¬

GROWTH STOCK

that

-

important ingredients
earnings results for-the
year

an

the additional

costs, and
of

in

costs

direct operating
increase in the level

an

The
1954

projections

assume

for

20%

a

sive

those

70%

will be utilized at

years

and

60%

load

increase

same

the

stimulating .ef-

a

at

respectively.

in

direct

extensive

an

program

on

soon

_-j.__.x_

,

al.

efforts and

bility of

The Atomic Age is,here. Ura¬
nium may be the basis of new

of

aircraft

the airline
to

afford

to

speculate—

buy Utah

common

stock

and

it

for future

put

away

now

itsearnings

These

clearly

results

inHn ofl„.

for

more

certain

companies than others.
Projected

Air

Line

Earnings

We

ment

has exempted from the

excess

profits

tax

in

ciety

~

42

earnings estimates. From my preliminary comments, you will apto

airline

However, just to satisfy
desires, we have made a
for

six

of the important
1952, and to give you
rough guide of possibilities, we

projected earnings for 1953
Of course, these
projec-

and 1954.

tions should

be

not

taken too

They obviously

certain

its

growth

1948,

revenue

are

assumptions

may prove to be in error.

se-

based
which

The

,-es-

The decline
after

came

of

Security

Mr.

previous

,

year.

dustry

was

only digesting the ab-

normal increases of the

In

war

years,

1949, the industry recorded

12%

increase

in

revenue

a

passen-.;

ger miles flown over 1948.

In 1950

V

lion.

■

1952

^Earnings do

not

allow

*

conversion

1954

Price

6.40

24%

2.34

3.19

3.89

13V2

2.19

3.59

4.69

133/s

3.60

4.30

6.25

8.20

3.58

4.42

5.84

6.14

United Air

Lines, Inc.

1953

$2.52

1.49

of

present

convertible

preferreds.

14

the

over

longer

II

'

level—is

eliminated

minable
that

——Railroads

cents

per

the

cents.

This

freight
cost

average

ton
19

was

total

freight traffic
is
still
infinitesimally small as
compared with total railroad tori
miles

of

billions

588.5

carried

in

1950, but there is little doubt that
air transportation of many prod¬

such as airplane parts and
machinery parts, has be¬

ucts,

certain

standard.

parel,

flowers,

addition,"

obtaining

are

'

ap¬

television,

stocks, and vege¬

nursery

tables

volume.
As

In

drugs, ' radio,

increased,

V.\

•

types of planes designed

new

for cargo transport are developed
and placed in operation, it can be

expected that air freight will

as¬

increasing importance.
These new planes may enable a
sume

in

reduction

tariff

rates

and

ex¬

pand the field which the airlines
reach.

can

As

compared with

an

in

• —as

Auto¬

Table

Buses

T951

10.150

9.9

30.1

1950

7.932

9.3

26.8

X
f 19.7

mobiles

19.8

3.362

26.9

2.178

26.9

90.2

26.5

151.3

1943

1.634

24.7

82.6

27.4

147.1

1942

1.418

17.9

49.0

21!5

1941

1.385

9.2

25.3

1937

0.412

8.1

1931

0.091

X

Total Rail
& Air Miles

102.5%

X

1945__.

Percentage of—

Miles

325.9

1944

a

II.

the

and

Within

9.3

29.6

f20.5

300.1

71.8

il8.4

11.0

35.3

23.0

293.2

54.3

14.4

12.3

40.0

23.4

274.0

50.0

13.2

58.8

25.6

253.6

86.3

26.9

179.8

*Esiimale.

fProjeetcd

available.

from

30.0

the

industry

remain

12.5
8.1

in

Of

some

dollars during
an

cost

of

than

less

mile. When it is

that shipping by air
freight involves much less packing
and

considerable

saves

time

and

crating charges, the basic competi¬
tive

ability of the air carrier in
freight
field
becomes
ap¬

the

parent. At
lions of

10-cent rate per ton

a

freight

ton miles to have

revenue

total $500,000,000

revenue

annually,

which

is

not

far

from

the total passenger revenues dur¬

Without

1951.
rates

the

Authority

a

decrease

New

estimates

York

in

Port

five-fold

a

growth in the industry air freight
in the next 15-25 years.

We

Increasing

Expenses

have

hearing

been

a great
recently about the mounting

is the

industry. This

for the pending air¬

reason

applications before the Civil

Aeronautics Board for permission
to make a $1.00 ticket charge and

Various

discontinue

the

5%

discount

for

round-trip tickets, etc.
Mr.

Neverthe¬

in mail pay

1951, coincident

increase in mail ton miles

Oswald

Ryan, Vice Chair¬
Civil Aeronautics Board, in
speech before the Aero Club at

passenger

significance is

the estimated decline

total

a

cents per ton

line

industry has taken place in freight
revenues.

man,
a

Washington,
26

this

the
of

on

February

that "during

in

operating expenses
than the rate of

greater

increase

in

profit

downward.

TABLE

C.,

stated

quarter of 1951, the rate

increase

proved
and

D.

year,

last

operating
trends
While

revenues,

promise
traffic

to
is

be

still

111

DOMESTIC AIRLINE OPERATIONS

9.2

!

time

primary im¬

industry.

10

deal

opposed to freight in

as

-Traffic-

-Revenues*

'

of

leaves

considered

costs in the airline

less,
the
greatest
percentage
growth since 1946 in the airline

in

5.963

the

for

will. Jbe 4.92 cents. Doubling this
figure to allow for overhead still

in

Freight Potential

railroad

the

with

6.104

Within

its

1049B,

especially de¬
carrying cargo, that
operating costs per ton mile

com¬

shown

first

the

Model

veloped

passenger

will note that air¬

for

;16A4

cost

to

volumes

Divisions of the Industry

25.3%

1948

better

history of the industry.

Growth

22.8

1947

is

tion

ing

other

to

travel

You

traffic

85.3

►3.678

airline

.estimated

mile; railway freight,
8.3
cents; and motor truck, 7.2
cents. By comparison, Lockheed
estimates on its Super Constella¬

the

have

is

cents per ton

deter¬

line traffic in 1951 exceeded Pull¬

^Estimates.

Pullman

of

freight cost of 19 cents per
ton mile, Railway Express on a
shipment from Burbank to New

hopeful

than the record

relation

carrier

mon

28%

Airline Passenger Miles

Private

was

would
year

trend

traffic

air

mile, it would take only 5.0 bil¬

profits recorded in 1951.

portance,

Pullman

..

in

be 35%

from

He

trends.

United

earnings this

20
,

'

(In Billions of Revenue Passenger Miles)

& Coach

traffic

term,

1954 could be expected to

man

GROWTH TREND IN AIRLINE PASSENGER
TRAFFIC
United States Intercity Travel

Pullman

was

tapering off in the defense effort

revenues

TABLE

Airlines

1951.

over

Moreover, Mr. Patterson

The

v-;'7

5.15

2.59

in

to the validity' to 40% above the present level if

as

$1.94

Northwest Airlines, Inc.__*
Trans World
Airlines, Inc.f

increase

of the continued existence of the the abnormal boom—which is cur¬
industry's
previous
substantial rently boosting activity 15% to
growth trend. Apparently, the in- 20% over and above the normal

3.90

2.90

year's

miles reported to have said that not¬
carriers withstanding the possibility of a

$1,62

Lines, Inc.—f
National Airlines, Inc

this

gross national product at $300 bil¬

only 2.3%, but it
two-year plateau and

caused concern

Airlines, Inc.--* $1.42

Eastern Air

♦Not

Analysts,

ar¬

was

was

a

5.948




talk before the New York So¬

a

for the first

passenger

declined from the

1946

Dlgby 4-4500

million

107.0

York

of

In making
this forecast he estimated the 1952

year in the history of the business,

total

brokers and dealers

Tel.

1951

projections

our

20% to 29%

terms* of

miles

passenger

rested; and in

in

particularly flown by all domestic air

a

forecast

earnings.
forecast

1947

Inquiries invited from
t

Broadway, New York 4, N. Y.

passen¬

over

abnormal
war
years
of
1943- revenue passenger miles for the
through 1946 advanced to 44.9%. industry and his own company at

1949

ESTABLISHED 1931

made

estimated

erage annual increase during the

companies
engaged in Uranium mining.

TELLIER & CO.

revenue

_an4<j

_

1931 through 1941, airline passen-'

revenue

I know Customers' Brokers like

on

airline

be forecast.

may

ge*' miles increased at the average

In

your

1Q9f?

in

miles flown in 1952

ger

before

seem

attainable

growth possibilities.
To encourage the production
of Uranium ore, the Govern¬

29

1951, when the industry

miles,

rev¬

annual rate of 28.4%.
After a Patterson, President of United Air
1952, and possibly after smaller increase in 1942, the av-f Lines, Inc., was reported to have

in

taxes.

.

accidents or .-.strikes,
industry should be able

increase

taxes

L

-

.

industries—new fortunes. If
you can

11.3 billion

eliminating the possi- industry in 1926, a rapid growth revenue passenger miles for the
unduly high number trend has been apparent.
From' industry last January. Last month

American

claims.

flew

come

any

1951

development

other

in¬

passenger

crease

traffic. From the begin-'

STATISTICALLY PROJECTED EARNINGS FOR
1952, 1953 and 1954

start

of

data.

maximum of

a

enue

and

fects of the international defense -ning of the United States airline

TABLE I

claims, and will

progres¬

rate

If this same curve be used to
project 1952 travel and if certain

COMMON STOCK

This company is producing
Uranium ore from some of its

a

the

miles, as com¬
indirect operating costs has been pared with a projection ,of 12.7
billion miles if a straight .arith¬
assumed for each year, as in 1952, '
metical
25%
rate of growth is
but no. increase
in
the
general-

The

passenger,

offset

riously.

4(k Per Share

the

to

Gompertz

a

assumes

in

airline

10-year

a

r

increase each

would

a

Selling Under

fitted

and

decrease

crease

and

1953

percentage

a

miles during

which

curve,

both direct and
indirect of about 5% over 1951.

as

of railroad and

sum

period,

1952,

tor in the airline industry is and
has been the rapid increase in

have

Utah Uranium

passenger- miles

10%

in Europe, and ibarrjng
any
general! business recession
that
and

airlines for

Pate>ihilUiel

of

less than

In

of

cost

average

mile.

.

year

«

passenger

of not

from

more

Pfff'34,!
that this is
difficult
»

of the

ating costs

points up the
difficulties .involved
in ^-making level of costs above the 1952 level used. -Unless a business recession
occurs, and provided the industry
any net forecast for 1952. On bal- has been
projected.
4 ; •
expands high density coach oper¬
ance, however, assuming a con•
'
i'.j'
ations at the four-cent level, as
tinuance of the defense mobiliza^Growth Trend of the Industry
tion program as scheduled here
discussed, a 20% in¬
The outstanding favorable fac- hereafter

on more

*An address by Mr. Lewis before the
Association of Customers' Brokers, New
ork City, March
25, 1952.

profit-wise. Table III

the relative

due

7ear jn passenger traffic .and -that , other assumptions are made, 1952
similarly *ncreased available seat Rapacity - airline travel would be projected

be

$1.00 in 1950, and is below

year,

shows

increase in traffic, plus an allow¬
ance for additional indirect
oper¬

ln

airlines -this

revenues

will
will

profits
earned

.

a

in the net

and

the additional

the

have

a

average

crease

that

and

this

or

'
cursory review of some

,

of the
John

Korean

curtailed

would

source

_

express revenues are

the

The

be

and

airlines

Such

crease

meet

also

affprtpd

for

volume.

nage

be

industry.

may

many

company
the ton¬

and

can

terminated

changed,
depending on
rates

not

ignored as
it rather generally can be in the

revenues.

the

factor

with

compares

rate of

earnings in the planes and higher cost of planes high density coach traffic will be line traffic will continue to in¬
will be expensive items. Some confined principally to the longer crease each year, although at a
companies will have their seating haul segments. It allows for the progressively decreasing rate, in
between different companies. On capacity
increased
substantially increased direct operating costs relation to total common carrier
the
this
brighter
year
by delivery of new inherent in the additional plane traffic. To reflect this trend sta¬
side, there is
planes. The fleets of other lines miles required to fly the projected tistically,
we
computed
airline
prospect

69

to

is reminis¬

The outlook for

the

rate

rate

pay

down

was

increase

airline industry is somewhat confused and varies considerably as

that the rapid

This

cents.

mail

average

mile

ton

per

...

28.6%

of

cent

passenger

•

The

based

is

1952

tory. The

growth of airline pas¬
traffic amounted to about

are' senger

share

flown to the highest level in his¬

18.8%

to

expanded

Thursday, April 10, 1952

.

.

25% of optimistic, however, to conclude
importance of
to high for the future that a straight line
the major types of traffic during
growth
trend
of
25%
-30%
1946
per
to
1951
inclusive.
density coach planes at a tariff of \
40 per mile, and 75% in regular year is still active in the indus¬
While passenger revenues
in¬
try,
particularly
in
view
of
the
fare planes at an average of 5.801
creased during this six-year period
per mile, and that on the average increased base to which the per¬
by about 114%, freight revehues
40% to 50% of the additional pas¬ centage of increases applies, and
were
up 412%.
In 1945 the do¬
senger revenues will be ^brought the abnormal defense-stimulated
mestic airlines flew only 1.4 mil¬
down to net operating income as-, conditions of 1950 and 1951.
lion freight ton miles. In 1946 this
Another approach to projecting
suming a passenger load factor of'
figure was up to 14.8 millions at

forecasting outlook for air transport

on

projec¬
in

common

estimate

miles

industry, Mr. Lewis predicts airlines, as a whole, should in
1952 be able to increase earnings, before taxes, and possibly,
i

1954

table I.

increase

After citing difficulties in

the

and

and

substantially on the assumption
that the industry will attain a 20%

Members, New York Stock Exchange
j

dollars

'The

v

1952

1953

shown in

LEWIS*

By JOHN II.

for

for

.

3.7

k

Total

2.3

*

Freight

Express

(In Millions of Ton Miles)
Mail
Freight
Express

(In Millions of Dollars)

Passenger

Mail

6.5

1.9

1951

$675.0

$580.0

$40.0

$21.0

$15.0

57.8

107.0

199.6

7.9

2.8

i95o_

529.3

434.2

46.8

22.0

12.7

46.4

114.4

36.8

13.6

264.3

15.1

5.2

1949—

464.6

381.9

45.3

18.7

9.1

40.9

96.1

27.5

20.5

10.0

212.3

5.1

1.9

1943

418.0

338.6

48.0

14.1

10.1

37.-3

71.3

29.9

15.9

6.7

168.8

$

0.-3

1947

357.4

306.3

24.4

8.7

10.6

32.9

35.6

23.6

1946

316.3

275.6

21.1

4.3

9.3

33.1

19.2

23.9

•

'

1518

on

the

basis

of

Greyhound's

experience.
^Estimate.

-

42.5

Volume 175

Number 5106

(V

The Commercial and Financial

.

Chronicle

(1495)
growing it is not growing
as

he

the

airline

spoke

costs."

after

I

as

fast

■over

presume

having

had

1950, whereas total

were

net

an

up

$9,599,000,

or

expenses

23.8%,,and

operating income gained.$385,-

do

not

have all the

1951.

for

For

generally
have

some

the

that
very

detailed CAB

last

quarter

quarter,
late.

of

they

are

But I do

not

October and November

while

total

operating

It

20.2%

increase of $9,955,000,

a

set the

in total operating revenues

these

no

any

State

Interest

NEW

these

on

gross revenues into net.

only

of the four

one

.*»(
annual

reduction in
ton

,i«?ueu

report.

shows

It

operating costs

mile from

45.6

per

cents

Despite

the

incident

to

the

as an

an

was

about

concerned

a

February,

were

Since

the

it

offermg of these bonds for sale

high

difficult to
so

maintain

was

in

or

route

offer to

buy

any

of

ISSUE

$96,000,000

State
Payable solely from the

revenues

(Series A)

of the Turnpike System
Due: December 1, 1989

Principal and interest (June 1 and December 1) payable at The Charleston National
Bank, or at The Kanawha Valley Bank, both in
Charleston,
West Virginia, or-at the
Guaranty Trust Company of New York, New York, at the option of the holder.
Coupon bonds in $T,000
denominations, registerable as to principal alone and also as to both principal and
interest, feconv-ertible into
coupon

The bonds may be redeemed in
whole,

on

30 days' published notice,

bonds.

date not earlier than December 1, 1957, at the option of the West
Virginia
purpose, at their principal amount and accrued
interest, plus a premium of
5% of such principal amount if redeemed on or prior to December 1, 1960; of
4% if redeemed thereafter and on or prior to December 1, 1963; of
3% if
redeemed thereafter and on or
prior to December 1, 1966; of 2% if redeemed thereafter and on or
prior to December 1, 1969; of 1% if redeemed thereafter
and on or prior to December
1, 1972; and without premium if redeemed thereafter.
They may also be redeemed in part, on 30 days' published notice, on
any interest payment date not earlier than December 1, 1955, from
moneys in the West Virginia Turnpike System Interest and
Sinking Fund, at their
principal amount and accrued interest, plus a premium of 3% of such principal amount if redeemed on or
prior to December 1, 1959; of 2% if redeemed
thereafter and on or prior to December 1,
1963; of 1% if redeemed thereafter and on or prior to December
1, 1968; of lh of 1% if redeemed thereafter
and on or prior to December
1, 1972; and without premium if redeemed thereafter.
'" ■:

Turnpike Commission, from

any moneys

that

may

on any

be made available for such

The bonds, their transfer and the income therefrom
under the

The bonds

are

secured
■;.*v

(including

Enabling Act from taxation

by

a

any

profit made

on

within the State of West

the sale

thereof)

exempt

are

Virginia.

-

•

Trust Agreement between the West Virginia Turnpike Commission

and Guaranty Trust Company of New York,

as

Trustee.

Price 99% To Yield 3.80%
(plus accrued interest)

These bonds

offered for

delivery when, as and if issued and delivered to us, and subject to the
unqualified legal opinions of
Pershing, New York, N. Y., and Vandewater, Sykes, Heckler & Galloway, New
York, N. Y., bond counsel to
State in which this announcement is circulated
from only such of the undersigned and other dealers as
may legally offer these bonds in such State.

are

Mitchell and

the Commission. The Official Statement
may be obtained in any

Bear, £tearns & Co.
Eastman, Dillon & Co.
-

A. C. Allyn and Company

:

John Nuveen & Co.

Hayden, Stone & Co.

Blair, Rollins & Co.

Incorporated

Incorporated

Equitable Securities Corporation
Bache & Co.

Francis I. duPont

&

Byrne and Phelps

Hornblower & Weeks

Co.

Company

Gregory & Son

Incorporated '

First Securities Corporation

Bacon, Stevenson & Co.

Wm. E. Pollock

Incorporated

& Co.

Paine, Webber, Jackson & Curtis

Durham, N. C.

Stroud &

Ladenburg, Thalmann

Incorporated

.

&

Hirsch & Co.
'

Yarnall & Co.

'

Co., Inc.

Paul H. Davis & Co.

Dominick & Dominick

F. W. Craigie & Co.

.

Hallgarten & Co.

Ira Haupt & Co.

Stifel, Nicolaus & Company

Dreyfus & Co.

Incorporated

Peltason, Tenenbaum Co.

Dempsey-Tegeler

& Co.

First of Michigan Corporation
.

Stern Brothers & Co.

Baker, Watts & Co.

Ernst & Co.

Laurence M. Marks & Co.

W. E. Hutton

& Co.

4

Roosevelt

&

Cross

Incorporated

Darby & Co.

Green, Ellis & Anderson

J. A. Hogle & Co.
April 7, 1952.




A. M. Kidder & Co.

Newburger, Loeb & Co.

,

Scott, Horner & Mason, Inc.

Sutro Bros. & Co.

Thomas &

Company

1947

large
granted

a very

miles

Continued

behalf of only such of the
underwriters, including the undersigned, as pnay legally
The offer of these bonds is made
only by means of the Official Statement.

Dated: March 1, 1952

of

liberally by the CAB. Many
of these new routes
tapped thin

on

Turnpike Revenue Bonds

troubles

largely from.

not corrected until

bonds, in the opinion of counsel, is exempt from all Federal Income Taxes under
present laws.

3%%

The

1948, coupled with

that this form of

an

1948.

too

which

solicitation of

or as a

and

increase

is

mass

market, some are
a
repetition of

reduction in airline fares in 1945

and

costs

with

about

years stemmed

which

higher.

airline" problem

of

one

compete

industry's experience between

1946

$200,000 those

compared with $414,000 last year.
Weather was bad this
and taxes

can

increasing share of the

the

two -months

reduce fares

.

transportation

railroad coach service, and capture

February due..to the
that airport, United's net for those

makes

'

in

transportation

45 cents with 45 cents in Novem¬

1

traffic

of this year
accidents at the

during
closing of

ber, 1950.

•'

of

Newark airport, and the substan¬
tial increase in
expenses

largely

'

loss

the first two months

November, operating costs per
revenue ton mile were
unchanged
from the previous year
comparing

circumstances to be construed

offer these bonds in such State.

increas¬

translate, in¬

in

edly true that since the first half

bonds, and is published in

been

to

happens that United Air

revenue

higher,costs. It is undoubt¬

This announcement is under

has

in 1950 to 44.3 cents in 1951. Even

be said that for October and
FJo-

or

so

in

<=0'. ,r
its i95i

expenses

advanced $9,128,000, .or .22.9%, and
■net operating income
jumped $1,528,000, or 55.5%. At least, it: can

it

difficult

Lines is the

figures for the 16 domestic trunk
jvember, separately and combjned,
lines. They show for October last
increased revenues more than off¬
year an

last vcpr.

creases

opportunity to
examine, the ».000, or 4.4%. For
November, 1951,
monthly figures for the 16 domes¬ total
operating revenues increased
tic trunk lines.
Unfortunately, I $10,491,000/ or 24.5% over 1950,
figures

of

ingly

7

Stein Bros. & Boyce

Cowen & Co.

on

page

32

•

(149#)

Tht. CommercM B.nd Financial

1

merce

Dealer-Broker Investment
Recommendations & Literature
mentioned will be pleased
send interested parties the following literature:

Jt is understood that the firms
to

Inc.—Memorandum—Pacific
Co., Exchange Building, Seattle 4, Wash.

Sugar—Report—Lamborn & Co., Inc., 99 Wall
York 5, N. Y.

Cuban
New

Street,

Wall

1006

Eastern Transmission, Texas Gas
Illinois Natural Gas Pipeline, Trans¬
Pipe Line
and Western Natural Gas—

Transmission, Texas

Gas

Transmision,
continental

Gas

England

Boston
New

6, Mass.

first

New York

performance over
National Quotation Bureau,
Inc., 46
York 4, New York.
/
•
1
market

Public Utility Common
Saxton &

13-year period—
Front Street, New

a

Municipal

Ltd.—Analysis—John

R.

Lewis,

York

N.

6,

Y.

available

are

Standard of

Bond

tabulation—Sutro Bros.

Also available is a

of

Common

Twin

Corp.—Analysis—Sartorius & Co., 39 Broadway,

Mills—Van

River

Dan

New York

&

Drill—Data—Raymond

Co., 148 State Street,

,

Writer 8c Chris-

Western States Utilities Co.—Analysis—Peters,

17th Street, Denver 2, Colo.

1-1 Kabuto-cho, Nihonbashi, Chuo-ku,

Redpath, 52 Wall Street, New York 5, N. Y.

Corp.—Memorandum—Shearson, Hammill &

Co., 14 Wall Street, New York 5, N. Y.
Also available are
memoranda on Caterpillar Tractor Co., National Malleable &
Steel Casting Co. and Westinghouse Electric Corp.

Bond

League standing

Also available is

an

analysis of Caspers Tin Plate Co.
David
cago

A.

Noyes

&

208

South

La

Salle

Street,

Co.—Analysis—Moreland & Co., Penobscot Build¬
ing, Detroit 26, Mich.
Trade

Grinnell
way,

&

Hunter

67

(Capt.),

Craig, Fredericks,

Co.'Board of

Texas

Field

conference

at

the

Security Traders Association of

bowling

tournament.-

April 18, 1952 (New York City)

Group

of Investment
Spring Meet¬

May 4-8, 1952 (San Francisco, CaL)
National

cial
nual

Federation

of

meetings

Outstanding values-for large
or

7th

New

York

annual

dinner

at

the

Waldorf Astoria.

Analysts Societies Fifth An¬
Convention at the Fairmont

Hotel.

National

Federation

of

April 25, 1952

Convention

at

the

Ambas¬

sador Hotel.

Louis

(Philadelphia, Pa.)

Eastern Pennsylvania

Investment

Bankers

Group of

Association

groups! Clark St. sta.
IRT subway

HOTEL

st. George
Brooklyn, N. Y.

Bing & Bing, Inc., Management

y

SENECA OIL COMPANY
CLASS "A":
A

dividend

paying growth
in Crude Oil

Dividend 2c per share

payable May 1

GENESEE VALLEY
SECURITIES CO.
Powers Bldg.f

May 14-17, 1952 (White Sulphur
Springs, W. Va;)

Spring

in hotel.

Finan¬

Teletype NY 1-376; 377; 378

Private wires to

Ave.

opportunity

May 9-10, 1952 (Los Angeles, CaL)

nual

small

Telephone MAin 4-5000.

Finan¬

Security Traders Association of cial
Analysts Societies Fifth An¬

Security Dealers Association

Trinity Place, New York 6, N. Y.

Angeles-Philadelphia-Plttsburgh-St.

banquets

Clark St.

Bankers Association

New York-Investment Traders As¬

sociation of Philadelphia

Troster, Singer & Co.




annual

ing at the Hotel Galvez.

Primary Markets

mm

67
59^
58
55

office parties

third

Investment

largest Hotel

facilities for

Bellevue-Stratford Hotel.

COMING

April 17, 1952 (New York City)

Cleveiand-Denver-Detrolt-Los

N. Y.'s

offers foremost

May 1-2, 1952 (Galveston, Tex.)

Mining Co.

Association

Bankers

FROM WALL ST.

Bowling Game April 10 or April 17. The League bowls
Philadelphia at regular alleys, City Hall Bowling Club, after which
a bowling dinner will be held at Grand Street Boys.
Anyone in¬
terested contact Sidney Jacobs.

'

Telephone: HA 2-2400.

Langford

W. Bradley __201 & 200

204

Western Gold Mines Inc.

Y,

the

5 minutes

No

In

N.

of Chicago

Club

at

•

American

200 Club
Al. Tisch

EVENTS

Members:

party

67

(Capt.), Tisch, O'Marra, Nieman, Bradley
—
(Capt.), Siepser, Hunt, Growney, Kaiser
Greenberg (Capt.), Siegel, Cohen, Strauss, Voccoli
H. Meyer (Capt.), Swenson, A. Frankel, Wechsler, Murphy

New York 38, N. Y.

1166, Pittsburgh 30, Pa.

Weseman, Lytle

Leone

Gulf Oil Corp.—Annual report—The Gulf Oil
Corp., P. O. Box

74

(Chicago, III.)

Traders

76
73
72Ys

(Capt.), Gavin, Gannon, Jacobs, Murphy

Corp.—Analysis—Amott, Baker & Co., Inc., 150 Broad¬

Golden Crown

Coronado.

Points

85
81
79

Chi¬

L. A. Darling

Enterprises—Memorandum—Kneeland
Building, Chicago 4, 111.

del

Annual Convention.

of April 3, 1952 is as follows:

(Capt.), Ghegan, R. Montanye, Krassowich, Manson
Bean (Capt.), Lax, H. Frankel, Werkmeister, Reid
Goodman (Capt.), Weissman, Farrell, Valentine, Smith
Mewing (Capt.), G. Montanye, M. Meyer, LaPato, Klein____
Serlen (Capt.), Gold, Krumholz, Young, Gersten
Donadio (Capt.), Rappa, O'Connor, Whiting, DeMaye

4, 111.

Federal

as

Railway Co.—Analysis—Available from

Co.,

(Coronado, CaL)

City, N. J.)

Kumm

Burian

Corp.—Analysis—Shillinglaw, Bolger & Co.,

Southern

Grand-

Sept. 28-Oct. 1, 1952 (Atlantie
SECURITY TRADERS ASSOCIATION OF NEW YORK

Clearing Machine

&

at

Gull Lake.

Links.

Krisam

Colorado

Hotel

summer

Chicago and Southern Air Lines, Inc. — Bulletin —Gartley &
Associates, Inc., 68 William Street, New York 5, N. Y.

Chicago, 111.

the

June 28, 1952

Notes

NSTA

TEAM

Products—Memorandum—Auchincloss, Parker

South La Salle Street.

on

at

Co., 50 Broad Street, New York 4, N. Y.

125

view

Lodge

outing

summer

Fishbite"

„

Albuquerque Associated Oil—Memorandum—James J. Leff &

American Viscose

annual

"Operation

Security Traders Association of
Los Angeles annual spring outing

Security Traders Association of New York (STANY) Bowling

&

(Minneapolis,

June 27-29, 1952

Tokyo, Japan.

American Home

City Bond Club annual
the White Bear Yacht

at

sociation

Tokyo Stock Quotations—Quotation of major stocks—Nomura
Securities Co., Ltd.,

Club;
Country

Twin City Security Traders As¬

9, Mass.

Alstyne, Noel & Co., 52 Wall Street,

5, N. Y.

outing—

Minn.)

of Louisiana and Missis¬

special reference to American

Detroit &

of

summer

June 20-22, 1952

sippi bonds—Arnold & Crane, National Bank of Commerce
Building, New Orleans 12, La.
Enka, United Merchants and Manufacturers, J. P. Stevens and

joint

Club.

Associates, 220 Fifth Avenue, New York 1, N. Y.—or
descriptive folder.

Textile Industry—Review—With

Detroit-Security

Association

16 at the Detroit Boat

picnic

report—Standard Oil Co.,

send for free

Tax Exempt Municipals—Tabulation

(Detroit, Mich.)

of

June 18, 1952 (Minneapolis, Minn.)

6, N. Y.

tensen, Inc., 724

outing at
Country Club.

Club.

report—Southern Natural

Michigan Avenue, Chicago 80, 111.

Twist

Boston

Stock

June

Association

June 17 at the Lochmoor

California—Analysis—Dean Witter & Co., 14 Wall

New York

Union

Club

Traders

Street, New York 5, N. Y.
910 South

New

summer

June 16-17, 1952

Co., Watts Building, Birmingham, Ala.

Gas

Philadelphia

the Whitemarsh

brief

Co.—Analysis and

Gas Co.—Annual

of

Country Club and Beach

Investment Traders
of

Ill

Company—Analysis—Genesee Valley Securities Co.,

Natural

Southern

Club

June 13, 1952 (Philadelphia, Pa.)

Building, Rochester 14, N. Y.

Powers

(New York City)

Bond

Club, Rye, N. Y.

Michigan

Seneca Oil

at

York annual outing at the West¬

Inc.,

chester

Also

convention

by-the-Sea, New Brunswick.

review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston, 9,

Transamerica

Warrants—By Sidney
Fried—Discussing warrants in their different phases and
describing current opportunities—$2 per copy—Dept. C,
R. H. M.

New

annual

Algonquin Hotel, St. Andrews-

June 13, 1952

209

Avenue, Seattle 4, Wash.

Cement

Riverside

Stocks—Comparative tabulation—G. A.

Co., 120 Broadway, New York 5, N. Y.
Merits

Co.,

Piiget Sound Power & Light—Review—Ira Haupt 8c Co.,

review of Hollinger Consolidated Gold Mines Ltd,

Speculative

&

Canada

the

4, 111.

Standard Oil Co. of Indiana—Annual

Co., Inc., 70 Pine Street, New York 5, N. Y.

Railroad Common Stocks—Comparative
&

of

Mass.

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
and

Co.—Analysis—Cruttenden

10-13, 1952 (Canada)

Investment Dealers' Association

quarter of 1952.

5, N. Y.

Over-the-Counter Index—Booklet showing an up-to-date com¬

yield

June

Corp.—Analysis—New York Hanseatic Corp., 120
Broadway, New York 5? N. Y.
Also available is a tabula¬
tion of preliminary New York Bank Earnings for the first

Broadway,

(New York City)

Sleepy Hollow Country Club,
Scarborough, N. Y.

reviews of Gaylord Container and St. Regis Paper.

Stocks—Comparison

Bank

Development,
Second

Country Club in

at

Polaroid

^

and analysis for
quarter of 1952—Laird, Bissell & Meeds, 120 Broadway,
City

York

Glass

South La Salle Street, Chicago

Louis 2, Mo.

Municipal Letter—Bulletin on New England
Bond market—First National Bank of Boston, 45 Milk Street,

New

Owens-Illinois

1952 (Chicago, 111.)

Bond Club of New York outing

& Co.,
Also available is a bul¬

Wall Street, New York 5, N. Y.
letin on Texas Pacific Land Trust.

Texas

Scherck, Richter & Co., Landreth Building, St.

60

Inc.—Analysis—Bankers Bond Co., Inc.,

1

Exchange

Lake Forest.

Manufacturing Co., Inc.—Analysis—Cohu

Orangeburg

Placer

Southwest Gas Producing, Southwest

on

Co.,

&

Stock

at the Knollwood

Kentucky Home Life Building, Louisville 2, Ky.

Natural Gas, Tennessee

data

Hentz

of

Bond Club of Chicago field day

Company—Circular—Dayton Haigney &
Inc., 75 Federal Street, Boston 10, Mass.

Ohio River Sand Co.,

*

Meeting.
June 6,

Lime

England

Arkansas-Western
Gas, Commonwealth Gas, Delhi Oil, Hugoton Production,
Kansas Nebraska Natural Gas, Kerr-McGee Oil Industries,
Mississippi River Fuel, Mountain Fuel Supply, Natural Gas &
Oil, Petroleum Ileat & Power, Pubco Development, Republic
Natural
Gas, Southern Production, Southern Union Gas,
containing

Gas—Bulletin

Natural

Association

June 6, 1952

Co.—Analysis—H.
Street, New York 4, N. Y.

Beaver

New

Investment

,

Firms Board of Governors Spring

Street, Chicago 3, 111.
Sulphur

Gulf

Mexican

the

.

May 19-21 (Richmond, Va.)

Inc.—Memorandum—Hamlin & Lunt, 2 Wall
Street, New York 5, N. Y.
Louis Allis Co.—Analysis—The Milwaukee Co., 207 East Mich¬
igan Street, Milwaukee 2, Wis.
Ludman Corp.—Bulletin—Sheridan Bogan Paul & Co., Inc.,
1528 Walnut Street, Philadelphia 2, Pa.
McGraw Electric Co.—Memorandum—Harris, Hall & Co., Ill

Co.

Analyzer—Tabulation—Geyer & Co., Inc., 63
Street, New York 5, N. Y.
Stock

Insurance

North¬

Kennametal,

West Monroe

investment in Can¬
ada—Stanley Heller & Co., 30 Pine Street, New York 5, N. Y.

Canada—Bulletin discussing prospects for

Mills,

Knitting

of

Bankers Association.

Building, Cleveland 14, Ohio.

Jantzen
west

Governors

Co.—Analysis—McDonald & Co., Union Com-

Harris-Seybold

IN

Chronicle... Thursday, April 10,' 105?

Meeting of the Board of

Rochester 14, N. Y.

Telephone LO 3190

:

Teletype RO 87

Volume 175

Number 5106

The Commercial and Financial Chronicle

...

(1497)
creetly directed to, the. following^ million in cash holdings nestled
'
in "company treasury:

Derricks in the Moose Pastures

list:

.

No. of Shs. Current

Company

By IRA U, COBLEIGH

Calgary

&

of Common

Edmonton-,.

Price

2,415,000

a

16

Canadian

Author of

"Expanding Your Income"

of

Superior Oil
California, Ltd.—

Great Plains Devel.

Royalite

Current Canadian capers on

Toronto Exchange suggest a more
and selective attitude toward prairie petroleum equities

cautions

This article just had to be writ¬

ten—written because of four

jor

highlights

North

from

news

in

the

financial

the

of

ma¬

Border

last week. The

items:
(1) a
6,800,000 share

turnover, the
biggest day in

history,

on the
Toronto Ex¬

change;

(2)

Toronto Ex¬

change

seat

sold at $58,000
against a New
York Stock
E
t

x

hange

c

sf

r a n

e r

at

$49,000 in the
(3)

that

we

the

must definitely admit

West

Canada

drilling

17

new

♦Plus

Oil

a

Co.

Ltd.-

Co.,

$9,949,000

1-4%

8,450,000

16

*590,317
2,869,948
notes.

12
20Vt

well

was

completed; and

section

in

the

where

two

South

wells

are

a

half

Leduc

area

in

produc¬

area, Alberta, Southern Manitoba,
year-high premium for the Maple Saskatchewan and British Colum¬ tion and three more partially
Leaf
completed.
Management is re¬
(not the "Make believe")
bia, is a real oil field, comparable
garded as excellent, headed by
dollar—$1,02 5/32; and (4) deci¬ in magnitude and
present devel¬
Mr. L. W.
sion of the Alberta Conservation
MacNaughton, with
opment to Texas in the early
Board to export only
"surplus" 1900's. This is the real things—a Calgary operations supervised by
Mr.
N.
W.
natural gas to the United States.
Nichols, formerly with
Canadian sedimentary basin
of
Superior Oil of California. The
Each of the foregoing four de¬ over 650,000 square miles running
bonds
outlined
each
carry
50
serves a paragraph, and, by your
North and South, larger, in total
shares and a warrant to buy 50
leave, it will get one. 6,800,000 area, than our five largest pro¬
shares more of Great Plains stock
shares changing ownership last ducing states, California, Texas,
at $10 (Canadian). Present hold¬
Thursday in Toronto was far more Kansas, Louisiana and Oklahoma.
ings encompass a net interest in
than the combined share volume It must be big, because over $200
around 200,000 acres.
million was spent last year in
on the New York Stock Exchange,
Canadian Superior is the affili¬
and New York Curb on that day. exploration and development in
Of course, that's a loused up com¬
western Canada; and right at this ate of Superior Oil of California
.

parison, since swapping sheafs of moment there are some 150 geo¬
penny
shares
would
naturally physical parties combing the moose
create

unit

more

volume

than

lands for

likely probing

But

areas.

than

ermine

the over-enthusiastic should defi¬

it costs somewhere be¬
$50,000 and $100,000 to sink
an
to $1,120.
average well 5,000 feet, and the
beauty
at
Pincher
Next, the comparison of Ex¬ 13,000-foot
Creek cost over $1 million. If you
change Seat prices is misleading
miss
with
an outlay of dough like
for in New York the seat belongs
to
one
man,
for his use only, that, you can be badly hurt —
whereas in Toronto the seat may mortally so if your company is
be tised by five brokers at the lightly resourced.
for

an

Superior Oil

to

move

equity like
from $560

time, and these gentlemen
curiously enough, called "at¬
torneys." (Some reader will no
doubt write in and tell me why.)
same

are,

thing

—

tween

cause

when

Canada

currencies

itself

its fiscal policies so

has

handled

intelligently.

a disappointment to a
number of
companies which had counted on

converting some of their "capped"

dent

I

know

full

well

that

foreboding will not be
tant

deterrent

entrepreneurs,
can't set down

for

the

to
so
a

benefit

avid

of

quarter century

every business organization
long standing, there seems to
some one
employee who com¬

of
be

mands the respect and
of

his fellow workers

friendship

as

a

natural

right.
Such

a

Sylvester

personage was

Walston Potter who died last Sat¬

urday in his 65th

year after a re¬

current illness of

some

Mr.

in

man

and

Potter,

a

a

every

native of

months.

Christian gentle¬

sense

of the

three

job;

seismic

and

as

crews

of

are

last

This is under
an

on

August,

Carolina, started his connection
with "The Chronicle" 34
years ago
and was active in its business de¬

you

think

even

adviser, then I have a sugges¬ and in his church life.
for you. Get yourself fitted
for a pair of antlers—if you're
going to display the brains of a
or

tion

moose,

you
one!

H

Elected Director

like

There

might as well look

no

is,

WithDempsey-Tegeler brouck has become affiliated

(Special

SAN

to

The

III

and

have

Chronicle) '»

Financial

DIEGO,

Casselman
man

in

French

&

Calif.—Laurence rietta Street.
Cassel-

Laurence

let's

if

see

those

He

was

previously

with Thomson & McKinnon.

associated

become

with Dempsey-Tegeler & Co.,

circumstances

be construed as an offering of these securities for sale,
solicitation of an offer to buy, any of such securities.
The offer is made only by means of the Prospectus.
to

or as a

or as

,

288,208 Shares

WISCONSIN POWER AND LIGHT COMPANY
Common Stock

(Par Value $10 per Share)
The Company is extending to the holders of its Common Stock the right,
evidenced by transferable Subscription Warrants, to subscribe for the shares
named above, all as more fully set forth in the. Prospectus.
■ '

we

Subscription Price $17.15

per

Share

whose

fascination

thing

Prior to the

in so risky a trade and X number
logical.
First, there is far of dollars ought to be lodged, if
tndre gas around and in prospect at all, in at least four different
there,
than
can
be
consumed enterprises. These, in turn, should
locally for decades; and our own be selected by you, with these
experience in Texas, Oklahoma, three factors imbedded deeply in
etc.., shows that the extraction, your mind: (1) Capital; (2) Man¬
use and transportation (by build¬
agement; and (3) Acreage.
The
ing
pipelines)
of natural gas first is essential for reasons
given
builds an area
industrially far

expiration of the subscription offer the Underwriters, through their Representatives, may
at prices and subject to the terms and conditions set forth in the
Prospectus.

offer these shares

attracting "home" industries is not
too

earlier and for survival!

Copies of the Prospectus may be obtained from the undersigned only in those States
in which the undersigned may legally offer these securities in compliance
with the securities laws of the respective States.

Robert W. Baird & Co., Incorporated

Smith, Barney & Co.

On the

rapidly than "capping" and
holding for the future. Especially second, depends importantly the
when exploration is bringing to location of profitable oil with a
light more reserves every day. minimum of dry hole anguish, and
The history of oil drilling has set
operating cost. Thirdly, a spread
up sort of a rule-of-thumb ratio
for oil and natural gas. For each of acreage is essential as it's just
more

The Milwaukee

Company

The First Boston Corporation

Blyth & Co., Inc.

so

billion barrels of oil reserves lo¬

impossible

cated, there are roughly six times

which

to

tell,

section may

in

advance,

prove

to




Qoldman, Sachs & Co.
»

a

.

\

'

►
.

Merrill

^
?

Kidder, Peabody & Co*
t

■

*

A

White, Weld & Co.

Lynch, Pierce, Fenner & Beane

be

trillion feet of natural the real McCoy.
So keeping these three criteria
gas.
So if Canadian known pe¬
troleum reserves are today- 1.5 in mind, your attention is dis¬

that many

Glore, Forgan & Co.

April 7, 1952

with

Crawford, Inc., 22 Ma¬

San
Joins Baker, Walsh Staff
Diego Trust & Savings Building.
(Special to The Financial Chronicle)
Mr.
Casselman
was
formerly
CHICAGO, 111.—John P. Wilkin
Santa Ana representative for First
the California
Company. Mr. Cassel¬ is with Baker, Walsh & Co., 29
$16 man III was with Fairman & Co. South La Salle Street.

offer to buy,

few ground rules

of

word

Washington, North

impor¬

There is obviously no sure

Actually,

decision

a

In

American

retain natural gas for building and

shortly.

Board's

however,

Superior, is President of Two

this

all

an

will

cash

"Chronicle" employee jor ovef

partment up to his last illness.
In his quiet
of
way, Mr. Potter,
buying any of these without first loved by his office associates and
getting all the facts and latest friends, radiated friendliness and
annual reports from your broker amiability in business, at home

If,

Canadian

Riviera!.

for
petroleum
probably lead to purchase.

Alberta

1886-1952

Freehold and National Petroleum.

Thus, while the prospect of oil
in due course, natural gas
revenues
of great magnitude in
the
great plains of Canada is

to

into

the

Sylvester Walston Potter

all

Fourth, about Canadian export
of natural gas—that seemed quite

gas

by Mr. C. U. Daniels, a man with
40 years' experience in the busi¬
ness.
Royalite has become more

and,

romantic, alluring and glamorous,
you can also go broke here at high
over the world are sagging, droop¬
While each new find
ing, and depreciating, isn't it nice velocity.
tends to "prove up" a field, and
to
see
a
real
good one for a
make succeeding drillings a little
change—the Canadian dollar? It's
more certain, remember that spec¬
quoted as a premium item partly
because American investors are so ter of big loss lurks in the shadow
of every derrick. Oil can put you
eager to place their dough in Do¬
relief, as well as on the
minion industries, and partly be¬ on
Thirdly,

iRrmnrtant

headed

men

At the regular
meeting of the
Board of Director of J. P. Morgan
all probability, a
& Co. Incorporated, Richard Red¬
great future in Canadian oil, and
if you select wisely, widely, and wood Deupree, Chairman of the
Board of the Procter & Gamble
well, and have lots of luck, per¬
haps Canadian derricks can turn Company, was elected a Director.
moose pasture into a bright future
With French & Crawford
for you.
But always weigh the
(8pecial to The Financial Chronicle)
(which owns 51.7% of common). risks you're taking!
Mr. W. M. Keck, Jr., Vice-Presi¬
^
i
^
^
i
ATLANTA, Ga.—Dean S. Has-

Superior. Vast acreage
nitely be warned against the oc¬ —4,690,000 either under lease or
option—sprawls
over Alberta and
are now ready to wallow in low
cupational disease of the wildcat¬
priced shares; and the old siren ter—dry-holitis. Of 550 Canadian Saskatchewan. Actual drilling re¬
song of percentage gains is again wildcats drilled in 1951, 80% were sults, involving small production
casting its spell. It seems to be fruitless; and that, believe it or in Alliance and New
Norway,
20 times easier for Zilch Petro¬ not, is a favorable ratio compared
have not been spectacular, but
leum to bounce up from $1 to $2, with U. S. experience.
Another
transactions in, say, Telephone at
154. But it does show that people

Royalite Oil Co., Ltd., formerly
subsidiary of Imperial Oil, has
seasonal staff of oil

Calgary & Edmonton has the established as a producer than the
other three, and now has 65 oil
billion barrels, then there should advantage of owning in fee min¬
wells with a daily production of
be 9 trillions of feet of natural eral rights to
1,142,109 acres of
3,000 barrels, and 1950 gross reve¬
gas—and that's enough to start land; 500,000 acres north of Cal¬
nue
of
$7.7. millions.
Balance
gary, and 600,000 running South
exporting!
from that city towards the Mon¬ sheet at the 1950 year-end showed
Now to warm to my task—why
tana border. No newcomer, Cal¬ $5 million of net working capital.
all
this
tremendous
Canadian
gary had drilled with profit for Royalite has an interest in over
speculation anyway?
Is there a
more than a decade.
Get the an¬ 2 million acres.
real future for carefully culled
nual report and see the extent of
The foregoing are in no possible
Canadian independent oils?
And
sense
to be construed as recom¬
how do you tell the good stocks land, the balance sheet adequacy,
and the list of directors' which mendations. Rather they are out¬
from the bum ones?
With 70 is¬
Includes
the
President
of
Ca¬ lines,
or profiles, of companies
sues now trading in Toronto, the
nadian Pacific.
illustrating the three basic ele¬
law of averages suggests that a
Great Plains Development ments to be sought in a drilling
certain number are candidates for
started out in 1950 with $9,500,000 company. Other issues you might
oblivion; and every one of them
want to look up would include
capital.
It still has
about
is selling far out of line with earn¬ in
Pacific Petroleum, Calvan, Dome
ings and dividend ratios normally $7,000,000 in cash resources after
Western
Exploration, Canada
applied by sensible investors to judicious purchase in the Drumheller area, where a successful Southern, and possibly Security
other classes of securities.
Well,

Ira U. Cobleigh

week;

same

#

*

«

'

* 4 1

10

The Commercial and Financial Chronicle

(1498)

Some Observations

the

on

the consuming "all of

under

verted into circulating currency,

may

ships

re¬

gove rnmental

into

Such
to

circu¬

Domi¬

nation

by the

buy and hold when the terms
which

under

when

and

price

flect

arbitrary

these

encourages

dictated

siderations.

over

long periods

Federal

it.

Limjuiu

hand,

a

and

freely

by

hand

from

the

prices and costs.
The agencies of government have
already spent or are spending the

withdrawal, and adding to
in

rency

search

abetted

of

inflationary

donment

of
in

tered in

the

the

tively

1933-1934,

is

deterioration

In

processes,

known

sumer's

ible paper money.
They can con¬
their, reckless
course
as

General

the

Credit

agement

of

Economic

by

Dr.

Patman
Control

the

Joint

Robinson

paid

and

Debt

Committee

bidding for the

dollar.

In

any

case,

penalty

on

of

on

becomes in

for

"eligible paper" as
bank reserves and"

With

a

however,

So. small

Federal

were

credit in the United

The
tures

accompanying
changes in the

chart

pic¬

sources

Reserve

ropean

to

tablish

con¬

debt

bankruptcy;

countries in efforts to

in United States debt held
by Fed¬
eral Reserve Banks, and
by other

from 3V2% to 5% in

in

to repudiate

even

at

part

is did

with

the

devaluation of the dollar in 1933-

1934,

and

supply

money

of

end

from

1951—the

1920

chart

upper

circulating

Fed-,

money,

to 75% by United States Gov¬

up

ernment

securities, whether or not
"eligible paper" arising primarily
from economic activities is avail¬
able.

Similarly, the Federal Re¬
Banks, which at the end of

serve

last

owned

year

total

of

nearly

the

prodigious

$24

billion

the

up

serve

Banks

serves

of member

1928, and (for
District) to 6% in

1929,

proved

wholly

sovereign

Government debt held by the Re¬

System has risen rapidly
fairly consistently since that

serve

and

time.

The

the

modus

vivendi reached

Federal

Reserve

Board

it

is

otherwise.

the

re¬

loans,

under

Treasury
in
March,
1951,
which freed the former from re¬

,

of

the currency arteries.

latter
and

Malady

Due

to

Irredeemable

March, 1952.
long-overdue

of basic interest

Currency

A wholesome

strengthening

rates, and of

as,,an

hay
of such securities. The offering is made only by and on the
terms described in the
Prospectus relating to such securities..

ISSUE

April 8, 1952

resulting. It is to
hoped that no "inte¬

However

is due to

we

our

ment

deficits

spending in

whatever

in

govern¬

both

words

and

war

these

may

much

-

bandied

will lessen the

mean,

peace

of

the

individual

self-disciplining

:...

and

national

realism

which

quires

careful

tinuous

planning and

concern

for

Marquardt Aircraft Co.

to

ernments"
To

the

the

extent

central

that

banks.

these

bank-

Reserve

System'

of

means

Two With Merrill

desirable

are

(Special

assuring increases in the

to

The

Financial

Lynch

Chronicle)

volume of money required over
SAN
he 1 d
FRANCISCO, Calif.
—
government
obligations
the years to accommodate a
grow¬ .Jane K. Howard and Thomas B.
merely represent the failure of the
ing population and a rising vol¬ Williamson are now with Merrill
Treasury to take in as much as
ume ot business.
This js like rec¬
it
Lynch, Pierce, Fenner & Beane,
pays
out, the nation's bank
ommending to a vigorous youth 301 Montgomery Street.
;
deposits, circulated by checks as
that he have periodic plasma in¬
currency, rest in part on nothing
jections
to make certain his blood¬
more

substantial than

air.

,

stream

This

situation

if

;

is

for

tivities
worse

of

course

guaranteed

a

market

will

adequately

larger frame

At Par
ag¬

auto¬

"governments"

of

a

later

than

scribing
of

a

type

and

stepped-up

that.

It

is

(Special

ac¬

is

even

SAN

like

pre¬

Robert

It

years.

Joins

the

serve

diluted plasma,
alien to the

blood

or

patient.

Converting government debt into

Shuman, Agnew

to

The

Financial

vailing
tained

Banks,

above, regardless of pre¬
interest rates, is main¬
by the Federal Reserve

through

direct

Chronicle)

FRANCISCO,
F.

Ames is

Calif.

Shuman,
Agnew & Co., 155 Sansome Street,
members

of

the

New

San Francisco Stock

York

SOURCES OF THE MONEY SUPPLY, 1920-1951*

purchase

Treasury, "open market"
operations, or both. "Open mar¬

par

are a proper and
accepted part of the fiscal agency
services rendered by the Reserve
System to the Treasury; they are

in

indispensable
central bank
and

instrumentality

regulation of

credit.

Treasury fiscal

However,

demands

re¬

if

al¬
lowed to dictate and freeze
prices
of
Federal
obligations
at
arti¬

value)

are

ficially low interest costs to the
per

share

.

V

government,

the

holders

of

such

securities, individual and institu¬
tional, may regard them as cash,
borrow

be obtained from the undersigned.

against them or dispose of
thern without risk whenever ex¬
penditures are incurred, more at¬
tractive

C. E,
61

Unterberg 8C Company

Broadway




New York 6, N. Y.

investments. desired,

or

added bank reserves called for.
rIn brief, then, government debt

.differs from priyate debt, in its
influence upon money and
credit:
(1) in the circumstance that gov¬
ernment bonds and notes
general¬

ly

represent

production

ffl
must

deficits
and

rather

tangible

-

than

assets;

the fact that private,debt
paid off, from producing

be

1920

1925
l All

1935

1930

ffpar* • wiual J»m 3 Ok, ISO I «|<(M

SOURCE. FEDERAL RESERVE SOARS

Prepared

by

the

National

«r*

1940

1945

f »t J»m 3(M> m* Dxirtti Ml*

" '

,

'

Research

Committee

Staff
on

of - the

Economists'

Monetary Policy.

and

Exchanges.

from the

an

—

with

at par or

serves

Capital Stock

may

con¬

the

ket" transactions

20,000 shares

the Prospectus

con¬

trol of credit is

"'

govern¬
credit
and
monetary
banks," "reserve city banks" 'and banking,
ment's credit and fiscal needs
may
policies
actuated
by
economic
"c o u n t r y
banks" respectively
be taken for granted. A wise view
needs rather than political con¬
against their "net demand de¬
will place the
latter within the
siderations would have imposed.
posits") approximating five dol¬
broad framework of the
former,
The thought has been advanced
lars for every dollar of deposit
and not the other way about.
in some quarters that unbalanced
credit built up for them,
directly
Federal budgets and a subservient
or
indirectly, by sale of "gov¬

Debts

any

of

by
and

the

banks, the latter

requirements (24, 20 and
for
"central
reserve
city

government,

advertisement,is >PlOI, and is under no circumstances to he construed
offering of these securities for sale or as a solicitation of an offer to

^Copies

in¬

sufficient and too late to stem the
tide
of
stock
market
inflation.

independence of action and the
since
the
early 30s;
to
responsibility of the central bank¬
monetizing of Federal debt in the
ing authorities in protecting the
existing banking system; and to avoidance nation's economy. That this re¬

constitute

Pegging Government Bonds

This

l

suc¬

rates

currency

precedented

As deposit liabilities of the Re¬

make

govern-

discount

be greatly
put it, the malady
gration," : or
"coordination"
of
abandoning the fully
Federal Reserve-Treasury policy,
to three-quarters of convertible- gold standard; to un¬

whole.

may

es¬

gold

sponsibility for "pegging" prices
of
government
obligations
has
supply to its brought down the price of the
current
business 't and
economic (bank
eligible)
Federal
2 }k%
needs (which is another way of ('67-'72).
bondsMdue Sept.
15)
saying that money has increased from a high of $109 in 1946, and a
far faster than goods to absorb
it), price of about $100 on the eve of
may be diagnosed as a hardening the agreement to less than $98 in
nation's

in

"Governments," may use these as
backing
for
their
own .deposit
liabilities

in

York

August,

off

eral Reserve notes, may be backed

Later sales of

rises

the New

.

portant

firm

bonds, coupled with

cessive

as
it has been doing
by releasing and failing banks, appears both quantitative¬
to control inflationary tendencies ly and proportionately.
further
depreciating
our
non- /
The
substitution
of
Federalredeemable currency.
C *
deficit-evidencing debt for eligi¬
This ability of government to ble commercial paper
(in "other

maintain

or

standards.

since

ever

States and to

help Great Britain and other Eu¬

of

ernment

as

gravated

$15

a

in

in dollars, the lower in
percentage,
breakdowns.
The
huge increase

them

matic

Price

and

time

holdings of United States govern¬
ment obligations in the 20s that
by
the charts hardly show the
the central banks for government
(for
large-scale
purchases
of
debt, to the extent that they are then)
under obligation or pressure to do governments by the Reserve Sys¬
tem, later in that period, to ease
SO.
Federal Reserve notes; and (4)
artificial markets maintained

and notes—and

debtor's consumption belt.

the

(#1.00

may

emer¬

lags

.

Man¬

on

be put

if it does not
arise from sale of goods, must at
least involve a
"tightening" of the

Report.

NGW

for

backing

ex¬

reserve

and this repayment,

pre¬

Subcommittee

may

drag,

the

14%

by
non-governmental
borrowers, whether or not it be
commercially self-liquidating in
character, must sometime be re¬

tinue.

to

and

\

incurred

the

press" in production of inconvert¬

statement

Debt

confidence

our

decep¬

production, and to this degree en¬
hances
supplies of commodities

monetization of debt, are the con¬

*A

and

brief, the matter

and services

temporary "stream-lined printing

sented

the

a substantial extent, rep¬
resent credit advances to facilitate

years.
as

save

does, to

our

by the com¬
placency with which we have ac¬
cepted unbalanced Federal budg¬

These

of

this way. Debt incurred by indi¬
viduals and by business concerns

regis¬

during 18 of the past 21

well

may

Private

gold

of

needs

Contrast Between Public

fired

and

money

as

terms.

easy

the

process,

convertible

it

run

non-competitive

on

devaluation and aban¬

standard

function

taxpayers large amounts of money
by
reducing
the
inflationary
forces set loose
by government
borrowing too much for too little,

cur¬

in

goods

historic

economy, encourages
realistic
policies.
In the

longer

funds obtained through borrow¬
ing; at the same time government
obligations representing this bor¬
rowing are building bank reserves,
increasing bank deposits subject

markets. This

System, serving
the govern¬

nation's

these

on

the

of

for

guardians of the credit

to

strong upward push tends

tc> be exerted

agents

traditional

passing

money,

checks

Independence

while exercising their chief

ment

is thus turned

than

rather

markets,

Reserve

fiscal

as

Kobms ->n

Kex

debt

bank

of

fluctuations

and
inflexible
rates
by Treasury fiscal con¬

this, and

into

it

repay;

ments"

,

greatly

forced

they lend meet the

the bonds and notes they buy re¬

Treasury

When

encouraged

are

savings

indefinitely the day of factors, .net")
as
the
principal
reckoning, especially if it dom¬ source of our currency, especially
inates the banking system through evident from the outbreak of the
control
of
the
central
banking Second World War, may be com¬
machinery, highlights the contrast pared to a stretched rubber band
between
private
and
Or, to
public- which lost its elasticity.
debt
in
their
effects
upon change the figure, the decline of
money and credit. Our most im¬ resiliency in responsiveness of the

"acid test" of the money markets,

cur¬

rency.

investors

when

gency

it

of national

government is able to

long

put

imme¬

diately
lating

should he to

tional investors.

indebtedness

though

necessary

in times

dominate the market for its bonds

so

in the hands of
individual and institu¬

genuine

of

money,
prove

.

greater extent

a

the

pon version

to

pressure

it does, in fact, refund
experienc¬

ing at once the penalties of

as

ernment bonds which

have

upon

long

less

and

travagance which are visited upon
Micawber-like persons. This holds

holders
of
our
cur¬
lationships between the United rency are deprived of a genu¬
ine
States Treasury and the Federal
gold
anchorage,
and
the
Reserve System lies in the effects banks,
central and commercial,
are
used
as
these relationrepositories of gov¬
in

-

and cumulate debt, not

of Federal Reserve.
problem

part with our money.

Furthermore the government is

After explaining how

governmental indebtedness may be con¬
Dr. Robinson discusses evils
and difficulties arising out of this process. Says situation is
aggravated by pegging government bonds at par. Holds deficit
financing and other fiscal maladies are due to abandonment
of fully convertible gold standard. Advocates independence

ets

will

we

us" are in¬
which

in buying and for

terested

Vice-President, Economists' National Committee on Monetary Policy

central

Thursday, April 10, 1952

.

comparatively refund and increase debt and even pollution of the nation's economic
little direct contribution, to the. repudiate it in whole or in part; bloodstream and should be
rec¬
country's flow of products which (3) in the substitution of "govern¬ ognized and treated as such.

By LELAND REX ROBINSON*

The

selling commodities, from the

.

make

revenues

Adjunct Professor of Political Economy, New York University

to

and

debtor's reducing expenditures, or

bly in war, largely also in peace, both, while governments may in¬
government outlays exceeding definitely delay repayment, may

Monetization of Federal Debt

has

incurred by the Federal Treasury

evidence budgetary deficits. Nota¬

.

1950

Volume 175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1499)
coordination,

A Federal

Monetary AuthorityOpen Door to Dictatorship
By WALTER

Professor

;

Executive

of

E.

practice
a

in

or

of such

success

long

as

major

ever

made

plan.

a

divisions

States

other

maintain

we

in

National Committee

checks

Monetary Policy

Beyond

and

a

this

so

three

United

our

govern¬

program

system of

balances lie

ernments of

And

the

Government, that

effective.

in

any

ment cannot make such

Economics, New York University,
on

unworkable

are

this

nation. No Dictator has

SPAHR*

Vice-President, Economists'

in

the

gov¬

largest individual customer of the
local money market.
In such circumstances it is evident

that, if it

market

policy,

easily find itself in
position

where

to

upon,

it

it

indepen-

an

dence from the Government."

may

Kisch

equivocal

,decide

and

F]kin

"Precautions

be called
between
two

may

insure
th©

courses, one of which may be imconvenient
to
itself

that

fcentrall

,n

„av

are

the

necessary

administration

Bank

<sViall

not

to

of
hp

dominated by the interests of
any
particular section of the business

mediately

48 states and

our

stances to remove its administration from political influences
and
to give it a measure of

also controls the
administration of
money

11

pri¬
The economy of a ultimate

^

other conducive to the or industrial world or by political
initiative.
interests of the
country influences."
nation, the mechanism of govern¬
a
creation of such
They say (p. 28): "The complete
ment, and the behavior of people an
dilemmas should be avoided.
independence of the Bank is per—particularly
those
who
have
They continue (pp. 22-23):
known and cherish freedom—are
haps an ideal to which countries
can only
not as simple in
approximate in different
operation as the
Such extreme abuses of Govprocedure, as advocated by "compensatory economy" theory,
degrees according to their state of
theory of a compensatory econ¬ eminent power
would lead to an Executive
[illustrated in the economic
dictatorship. Pleads for Federal
development and the
omy implies.
text] are, of course, only possible sense
Reserve System free from political
of
responsibility inherent in
influence, along with a
when a country has ceased to be
The theory of a
their public and
"compensatory on
particularly their
freely redeemable paper currency.
economy," with fiscal and mone?• J,°.!d basls'long, as eon" commercial
Plife." And, on p. 37:
tary management by the Execu- vertibility is maintained the worst «
The basic issue involved in the feet the volume
it is of cardinal
and availability
importance
evils resulting from Government
tive, is the theory of the wouldthat it should be made as
hearings conducted by this Sub- of credit—especially the
difficult
Treasury
dictator. It has no proper place intervention in banking and cur- as
committee is whether the people Department and
possible for the Governments to
the Federal Rerency control are
vate

Asserting various and persistent efforts have been made to
impair independence of Federal Reserve System as part of
movement toward Socialism and
Dictatorship, Dr. Spahr con¬
tends proposed integration of fiscal and
monetary policies and

Wh0\
.

,

ml

.

.

.

.

.

.

,

,,

,

,,

,

.

,

the

of

United

States

to

are

have

indepen¬

an

dent

tem,
to

Sys¬

designed

operate

the

that

in

interests

as

a

it

is

to be made

an

concerned

Proper Relationship
Government

and

The

good

principles

described,! But since the
Treasury

would be

readily slip back; nevertheless, if the control of the operations of the Central Bank lies

and

lessons

of

central

Banks" (Macmillan and Co., Ltd.,

WcutivS$
our f
of

that

course

g^e11 word's
central

Waiter E.

Dr.

Spahr

agency,
be an

or

the

it is

coordinating

"mechanism,"

instrumentality of

would

the

Ex-

ecutive.

sys¬

the Bank of England,
They state,
the

proper

rectly

self for

relation

government and

time

a

by

short

fatally easy
to finance it-

means

loans

tion and

the

inconvertibility.

"Even

there

apart

from

other

are

res0rt to the

The

repetition of past disasters."

and

After World War
I, the various
whose
officials
understood the principles and
lessons
stated by Kisch and

nations,

Elkin, tried

to free their central

banking systems from that government domination which was
recognized to be
unsound in

sibly,
The

principle, except,

in times of

Brussels

pos-

serious

a

war.

Conference Resolu¬

risks

of 1920 crystallized this
general belief. It said: "Banks, and

especially a bank of issue, should
be freed from political pressure
financial and should be conducted solely on
intricate, the hnesof prudent finance"! The
dangers

controlled

-

network

expedient of borrow-

tion (III)

such

serious

Government

a

of

and commercial life is

the management

of book

from

Bank, a course which is the first
step towards currency deprecia-

from

between' the

becomes

and

20-21, regarding bank.

pp.

it

for the Government
entries

di-

indirectly with the Gov-

or

ernment

.

ing from the Bank, a practice
which, if continued, can lead to a

themselves

not

London, 1932), 4th ed., with a
part of the executive branch of "Foreword"
(to the first, 1928,
our Federal
government, it would edition) by The Right Hon. Monseem
to
follow as a matter of taSu c- Norman, then Governor of
involved, and since

dragged

out of the morass of inflation will

Between
Central

Banking
v

eco¬

avoided. Doubtless the Governments which have

laboriously

with

mutually supporting

type

banking have perthe mechanism haPs never been stated better than
which would provide the
effective by Sir Cecil H. Kisch and W. A.
coordination recommended is not Elkin,
in their book,
"Central

ity of the ex-

banking

agencies

our

recommend, 0f economy and
government

nomic policies."
The nature of

instrumental¬

with

all

tent and

people
whole, or

whether

jn what is supposed to be

We

monetary problems follow consis¬

the

of

System.

therefore, that steps be taken im¬
mediately to establish an effective
coordinating mechanism to insure

Federal

Reserve

serve

.

so

the

decisions of the Bank on same statement was issued by the
importance — in¬
1946, a recommendation of of a central banking
system:
important points have such wide- Genoa Conference in 1922.
deed, the necessity—of establish- this
same
general
nature,
but
"The theory underlying the con¬
spread results, that all interests
ing and maintaining their inde- stated in more concrete terms, was
Jbe experience of Germany
ception of a State Bank centres are not affected in the same
way. with the Reichsbank, when it was
pendence, if the people of a nation offered by a research staff of the
on
the proposition that since a A
change
in
the
rate
of
are
to
discount,
Placed
under government conpreserve
representative Committee for Economic Develop- wise
central banking policy is the for
example, which benefits some fr°l> was s0 disastrous that the
government
and their freedom, ment in a publication called "Jobs
basis of a sound national economic
may be unwelcome to others. But German Bank Act of 1924 opened
The only valid exception to that and
Markets" (March 1, 1.946).
life, the Bank should be under the if the Government has a controll- with this sentence: "The Reichsprinciple arises in time of severe The
recommendation
then
was
control of the national Governing influence over the Bank, there bank iS a bank independent of
war when a central government is that a central
monetary authority, ment.
But the
dangers of this are obvious ways by which the government control."
compelled
to utilize every
retems teach

In

the

,

,

-

its

at

source

Under

command.

conditions

such

^nder the President, be
hshed

and

that

it

estab-

"should

be

charged with developing and dierty, freedom, and valuable in- recting a unified program of fisstitutions,
including
a
nation's cal, monetary and price control
and

money
the

effort

political
ties of

structure,
destroyed in

or

defeat

to

provide criteria
good peace-time

are

institutions.

*

maintain price stability
."

.

recommendation, if enactes-

course are

decisions
every

great.

of

of

executive

Just because the

the

Bank

on

aspect of the economic

ac-

tivities of the

country, it is

essen-

tial that its direction should be

unbiased
able, and

as

is

as

continuous

ble.

clearly

But

under

more

react

State

humanly
if

control

tablish m this nation a central- policy cannot
lze&> dictatorial, and totalitarian changing

form

-

.

and made effective, would

necessi-

do not

what

actj[0R

and high employment.

national

a

But the

enemy.

war

to

as

prop-

banking

be impaired

may

lives,

be

the

as

It

is

of

the

ward

and

persistent

Governments, nor can
oyer freedom from political bias in its

control

widespread movement toSocialism

dictatorship
branch

and

of

variety of

a

the

by

executive

Federal

our

govern-

ment
V

efforts

*

Typical of the movement in this

direction have been the activities
of those who

ing

have been advocat¬

Federal Monetary Authority
and what some designate as fiscal and monetary integration or

,uThese
the

^

will

as

Executive.

under

the

Federal

have appeared

Sometimes the propo-

not

staled

deemable
struction

v
over

The

fact

the

reader

that,

recent

the
xne

and

ProDer
proper

This

without

secure

the

execution

policy, this should
readily be achieved by
a

State Bank under

have

taken

in

certain

of

France

(p. 22): "There can
question that the power

Government

announcement

is

not

the

de~

loans

from

to
the

force
Bank

nancial crisis that

of the Federal Reserve Sys-

First

?„f
man-

in-

During

and

and

Elkin,

op

on

cit.,

offer to sell or a solicitation of an offer
offering is made only by the Prospectus.

to

buy these securities.

Telephone Company

Mortgage VA% Bonds, Series C
Due

April 1, 1984

aff^of'this^falLrareTcor
Price 101.525% and accrued interest

•

ii0n"MlefeervdPoLl7 to^ombat
Rheiation

21st

800

hVeSt'ev

TO

fi

rlsreDrinted
9, reprinted
p.

Street

TeT

r

n

in■

Such a Program, if "successful,"
would require Executive dictatorN
W
ship desPite the widespread lack
iQWl' of discussion of thi, fact. Not only
of this is dictatorship required; the Die-

planning

Par"

91

II

As

Pniir-v

Man»~m^nt
Tleht

iFeb

29

1952)

Sf^niratlon
effective utilization
powers

requires

tator would, of necessity, heed to
what t0 do and when to do
U' and he would have to have the
P°wer t0 make his wiI1 effective.

thl pSES know

of

That

ffir^ rAiic

«p„fl

of

rec-

and

monetary
y Congress

coordination

of

the policies of

sive

*A

statement

the

Patman

by

Dr.

Spahr presented

Subcommittee

on

General

thT'ITono'n.k
Report>




a

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

halsey, stuart & co. inc.
stroud & company

would be compelled to

surren<jer jts powers and
responsibilities in the fjsca, and monfi_

the various governtary fie]ds and to become
ment agencies whose actions af
to

The

INCORPORATED

wm. e. pollock & co., inc.

j gregory &. son
r.

stern

INCORPORATED

brothers &, co.

pas_

instrumentality of the Dicta-

heller, bruce & co.

tor.
The

theory Of

a

Compensatory
economy, and its integral part, fiscal and monetary integration or

April 9, 1952.

France

immediately

.

Tnft'PeiV' iwltinnai

no

the

increased
of

culminated

Continued
1 Kisch

Dated April 1, 1952

expansions ™d con!
tractions by private enterprise in

be

of

in

1926."

an

Illinois Bell

un-

intensified the depreciation of the
franc and contributed to the fi-

steps

been

Bank

say

control; but even in the
countries where the capital of the
is held by the
State,

Bank

the

$25,000,000

production,
consumption,
exchange, creation and distribution
An example of a recommenaa- 0f
income, prices, investment, emtion of this type is "Recommendapioyment, and so on.
nation
fairs of this hat

a

most

The

e-sate

fiscalaf-

on

interests require.
paradox that when the

official

indenenmflepen-

accordance with which the

if

carried

of

der the domination of the Treasury, Kisch and Elkin had this to

Si
irre

an

in

Entire ^»h*
monetaryand

currency

of

otrucnon. ox

crobablVbdoadnoUrevealhto1 the
casual

"nvolvine

procedures

vLrJtZ, Z ^nnAflrv ^'d dence
affairs have been

be

national

the creation of

Proposed Integration of Fiscal and
Monetary Policies

S•

fisca?

be

eal affairs of this nation-

-fnr

coordination

can

Regarding the unhappy experiences

pressures

in

years in behalf of Executive dictatorship in the monetary and fis-

efolo

"f ffpftiv#*

for po-

national

a

a

coordination

the
their

are typical examples of

many and persistent

which

open

intrigue, and the.re

seems

of

monetary, price, and fiscal affairs, administration be assured. In
most
have been made in this country Two of the signers of that recomeconomically developed countries
in recent years to impair or to mendation were also
signers of the probabilities are that the nadestroy the independence of our me less specific "Recommendation tional' Government will
be
the
Federal Reserve System as a part a,
quoted above,
Various

The road is

continuity of object is to

guaranteed with

in

enforce

safeguard that the policy of the

no

bias

possi-

Bank

litical

interests

try to

can

wishes.

Bank

practicas

powerful

country

schwabacher: & co.

aflci

page

p.

17.

2]

The Commercial and Financial Chronicle

(1500)

•"r

In

The Railroads Can Be Rescued

is

this

for Railway Progress

Chairman, Federation

carrying capacity
equivalent to paying $500

passenger

annually to maintain an automo¬
bile which includes its engine as

By ROBERT R. YOUNG*

that

If

well.

Chairman, Chesapeake and Ohio Railway

industry's leader criticizes its economic methods and
service, and offers detailed program
rescue it from bankruptcy and government ownership.
Sug¬

standards of passenger

establishment of central reservation bureau, simplifica¬
procedure for settling accounts, stock options for
executives, and unification conference.

'.he Federation for Railway Prog¬
ress

are

we

years

is

a

not discouraged.

Five

short time in an indus¬

The Federa¬

this

year

offered

ten

Y

New
R

e

r's

e a

solutions
the

for

in¬

It is
that

dustry.
strange

they had

to

deal with such

obvious faults

easily rem¬
edied.
' vy'V

so

ing

Those who

-

life

year

their

of

R.

Robert

have

windows

the

rail—the

-could

insure

In

no

billion

a

Temperature variations re¬
heavy damage claims. The
Train
X
could
eliminate
the cost of favoring ice reaches untold
passenger
loss
and
at
reduced millions annually. On 11 western
rates boom rail travel, taking a
railroads, where these icing delays
heavy burden off the highways. are most important, sixth
morning

There

those who go so far

are

delivery of West Coast perishables
into Chicago is
uniformly adhered
profitable as freight, for to, although fifth morning deliv¬
unlike freight, the potentialities ery would be
easy, and fourth
are
unlimited.
Freight which is morning should be the goal,
consumed can be hauled only one
A new air brake has been de¬
to

that

say

made

but

way,

travelers

be

must

return. veloped with 150 fewer
parts than
automobile present equipment, one-third as
forming as heavy.
Manufacturers have re¬

improving

ever

has

as

could

passengers

as

become

habit

as

drink.

Who

wildest

imagination, would have

in

1910,

with

the

many,

freight billings. Con¬

sider the costs thus imposed upon

the frayed tempers of
passengers. The final unit should
be dimes or dollars, not pennies.
It is encouraging to note only this
;

We

hope

them

a

ment

business.

has

been

no

excuse

half the operating costs of the

newest

has spent half a million in build¬

railroads
will be more cooperative in adopt¬
ing these ideas from this one rail¬
connecting

ing the first model, confirms our
optimism; yet, it has stopped fur¬
ther
development
because
key
railroads say Train X will not do

road than

they have been in sup¬
porting
its
revolutionary
new
Train X, for few reforms can be
instituted by one railroad work¬
ing alone.
V
/:

because
station

it requires

platform.

ing such

..

times rail

travel,

or

air travel

equal to Pullman travel with

a

alterations in

Imagine block¬

vital defense

adjunct

railroads

no

with

exception,
fought the constructive proposal
all the way up to the Supreme
one

and

defeated

A

Central

Reservation

equipment is obsolete.

Bureau to

press,

single

Bureau

Central

for

eliminate

each

the

the dreary visits

than

Reservation

railroad

ticket

should

window

orders

and

for

equipment

new

tually dried

up;

changes

when

our

bil¬

five passenger cars

and re-visits to

20 years old.

ical fit to operate after 20 years?
The cost of

by Mr. Young before the
Railway. Progress, New

It

taining this

them

tell

to

sum

of

the

exactly

deficiencies in present Pull¬

same

service the group offered

man

correct seven years ago.

last

year

said

that

there is

a

railroads

for
real

every
reason.

annoyed

so

to

The most

the

railroad

five

Are

ger

runs,

with

can

schedule the

lucrative of

it is

For years

little

.

t

more

,

L. F. ROTHSCHILD

according

to

A. G. BECKER

A

& SON

IRA

the

maturity

CORPORATION

FREEMAN

CO.

"

'

A

A

COMPANY

HAYDEN, MILLER A CO.

McMASTER

CO., INC.
'

,

FIRST OF

WEEDEN
~

V

A CO.

INCORPORATED

MICHIGAN CORPORATION

-

t

HUTCHINSON

JULIEN
;

,

L

'

MULLANEY, WELLS A COMPANY
April 4, 1952




is

freight

the

of

mystery

Any

cars.

roller

skated
The

ence.

the

roller

who has

boy

knows

the

differ¬

bearing need be

greased only once in three years,
present friction bearings almost

daily.

The cost in excessive main¬

tenance,
boxes
of
a

retarded *, speeds, ,vhot

and

accidents

of

quarter

a

'•

year.

is

in

excess

billion

a

-X

dollars

X

-

The difference in bearings,

the

box car.; Would you
because of terminal, de¬
lays, the average speed of ja^box
car from shipper to'destinations is
average

believe,

can

the

ride

White

.

.

twice

fast,

as

delivery-of

while the

is. it

Why

by* rail, is
•,

can

man

a
■

the

that

man

a

as

kj

;

highways,

but not the railways, have learned
to

bypass congested areas? Thiqk

of the

in

benefits that would

accrue

operating
costs in Chicago, for example, if
there were a single suburban sta¬
delivery

tion

time

instead

of

and

eight

downtown

wa£ that

and the rights of

ones,

interlace and choke the city were
estate.

called
of

income

into

converted
real

Chicago

producing
once,

was

gateway. Now it is more
barrier to commerce than the

a

a

frontiers of Europe.
Put the Trucks
I

have

gives 22
fer

// T

,

V1

„

the Rails

on

which
why shippers pre¬
Virtually all of these
susceptible of elimi¬
compilation

a

reasons

trucks.

reasons

are

nation.

make

continues

lose

to

the

$100,000,000

over

an¬

the Railway

operation of

have thus far sought

on

this

done—and

is

the

a

basis.

sound
I

Unless

believe

that

A

COLLINS

A

,

McCORMICK

ready

...

CO.

when

disastrous express
in

1954.

The

the present
contract expires

time

for

action

is

it has been long overdue.

the

as

truck

introduced

back

furnishing

quick

trailer

in

War

I,

not

strange in this fourth

icing stations—needless de¬
lays to perishables for icing and
upon

de-icing of hours, sometimes days.
Corrosive brine drippings
from
cars,

shorten

culverts,

structive long haul trucking^ £>uch
a
vehicle would long ago have
been

developed for the railroads
the motor companies if they

by

had been offered the slightest en¬

The

couragement.
of

the

trucking

thus have

whole

course

could

industry

been constructively

al¬

tered.

.»

To

the

counter

annual

wage

boost to labor, made necessary

by
constantly increasing taxes> hence
living costs, the railroads1 must
create new savings in the next
decade

from
soon
a

such

those

as

dieselization in

thai'came
this

decade,

a billion and a quarter
New savings of such mag¬

to be

year.

can

come

only by

a

solu¬

by meeting the speed of delivery

that refrigerator cars still depend

ice

between
railway
and
highway, would have saved us
from today's dangerous and de¬

of

decade of mechanical refrigeration

melting

and,
coor¬

easy

dination

nitude

Bearings,
it

and

first

tion to the passenger problem and

Ice, Air Brakes and Roller

CO.

COMPANY
.

A

asking—there will be no

remedy

Is
WM. E. POLLOCK

Today,

and

Hartsdale

ago,

from

passenger

placed

now;

HAUPT A CO.

ILLINOIS COMPANY

action.

got

the

year

cooperation of the Post Office
Department or the ICC to bring
about fair competition in rates so
that the express business can be

for

INCORPORATED

THE

a

the

INCORPORATED

GREGORY

than

appropriate cooperation from these
government agencies can be had

EQUITABLE SECURITIES

A CO.

longest layover.

Involved also is
the pricing policy on small ship¬
ments. Yet, no representatives of

HALSEY, STUART A CO. INC.

\

in which railroad

Express Agency.

as to payment ojpar value and dividends by endorseme
Chesapeake and Ohio Railway Company

A CO.

all passen¬

remonstrance

the industry

..

be

nually because of the unremunerative government pricing
policy
on Parcel Post and the inefficiency

Issuance and sale oj these Ccrtijicates are subject to authorization
by the Interstate Commerce Commission.
The Offering Circular
may be obtained in any state in which this announcement is circulatedfrom only
such of, the undersigned and other dealers as
may lawfully offer these securities in such state.

.

com¬

the railroads carried

railroad

railroads

$315,000 semi-annually October 15, 1952 to April 15, 1967, inclusive

R. W. PRESSPRICH

maintenance.

•

in

..

nearly

is any

dollar.

guaranteed unconditionally

to 3.00%,

give
mil¬

save

The engineers of one railroad
and receive free baggage
are
now
at work on lightweight
transportation for such space hogs
freight equipment of Train X type
as bicycles and such back breakers
with retractable gear operable on
as
outboard
motors
and
cream
the highway. Such a hybrid vehi¬
separators all for 14c. This pack¬
cle would have been as easy to
age woud be a bargain at a round

Equipment Trust Certificates

yield 1.95%

would

Plains,

(Philadelphia Plan)

to

averages

there

most

Express

Priced

car

If

hours.

between

Chesapeake and Ohio Railway
Second
Equipment Trust of 1952

The

in¬

interest

an

failure to adopt roller bearings on

The

stinacy

railroad,

e

which

pansion in the filing department. less-than-carload lots
often less rapid than
Station Platform Obstinacy
walk?
'

without

mature

in

There

walk,

one

To

brake

can

til,

2y8% Serial

lions

gives
replace¬

railroad

shocking rides and

of the constructive

come

the U. S. Mail at a $100,000,000
loss, thus subsidizing, through the
eling public shrewdly catered to government, large and prosperous
could
supply the ideal political commercial users of the mails un¬

$9,450,000

this

less

Heller Report, likely, will be ex¬

that will

passengers that they
look forward to driving th.em.fr.Qm
the rails? Yet a sympathetic trav¬

was

in

than

the

good

The

dustry has yet to show

less

dissatisfied

Is anything mechan¬

fleet

is

some

mechanically main¬

1952.

other rail¬

which

,

petition in this, which should

reason

than

,-it. Local telephone calls .automat-'

or

roads.

vir¬

are more

forward with Train X with

without Pullman

or

yet, four out of

Yii *An address
Federation
for

York, March 20,

to go

Last year

service, including Ex¬
Mail and Baggage lost more
half a billion dollars, and

passenger

Eliminate the Ticket Window
A

platform

brake

a

profitable, parts

it.

plantation
platform
ob¬
to Train X is no more
lions alter the face of the world. mysterious than the mock
Equipment Is Obsolete
through
week
New Haven's introduction
Although the public will not be Ninety five percent of our troop service at Chicago. An airplane
of automatic ticket vending ma¬
Fortu¬ can get in and out of Chicago in
fully aware of it for a few more movements are by rail.
chines.
'
years, American railway passenger nately this one railroad proposes half an hour, but the layover of
Railway Passenger

'

in

how¬
Recently ever, is not the only reason why
the
these
same
railroads
average
Wuck covers four
paid
the
Robert Heller Associates a large times as many miles, per yeartas
Court

here in America because of minor

American

frained from adopting this
brake,
perhaps because there is more
money

one

other industry does

ties.

predicted present highway travel,

There

■IP

sult in

25

automotive engineers, gives twice
as
smooth and a safe a ride at

the railroads last

?■

receive the first bale of cotton in
1830.

enormous.

Thursday, April 10, 1952

.

height of the freight platform to

present day equipment.
approach its ratio in Its original cost is only one-third
the railroad industry: one-seventh that of
present equipment.
The
of total payroll.
Pullman Standard Company which

wondered

motions
and precious moments could have
been saved since 1830 if only those
odd pennies had been rounded off
procedures.; How

shippers,

above

clerical cost

why rising costs of paper and la¬
bor
have' not
brought
simpler

of fares and

on

are

two-thirds of

were

dollars.

Young

before

ticket

the savings

as

Clerical costs

have spent too
much

inches

three

the floor of this

years

car|^has been four feet

.

M r

card. The savings in for these high wheels such as the decrease in rail travel. Certainly
time, errors, duplicate sales, ac¬ automobile had in the days of high it could never have been accom¬
counting and personnel would be roadway centers, on the railway, plished with gaps of a generation
as helpful to the railroad as to the
smooth as glass. One of these cars between
models, by stubbornly
passenger.
weighs as much as three cars sticking to two cylinders or bi¬
One railroad proposes to go even should weigh—and the burden of planes.
further in accounting simplifica¬ weight
on
roadbed and motive
When, in 1945, a group offered
tion. It is examining into the pos¬ power rises geometrically.
to buy the Pullman Company and
sibilities of settling the vast maze
to spend $500 million to modern¬
Train X~and the Heller Report
of inter-railroad joint service ac¬
ize its fleet, leasing it to the rail¬
Train X, two and one-half feet roads on the same terms as
counts, both freight and passenger,
pres¬
by the technique of sampling. The lower at the floor, three feet lower ent over-age over
weight equip¬
results, accurate to a fraction of at the roof designed under rail¬ ment, and to spend further mil¬
1%, are as dramatically encourag¬ road supervision by aviation and lions in
promoting
travel,
the

1830.

tion

cent

per

that

lobby—one

.

r*4

.

credit

by

in

born

try

*

friendly regulation.

The

120

For

ically routed to this Central Bu¬
reau
should get the information
and insure the space.
Settlement
should be on the train in cash or

of

Anniversary

Fifth

this

hundred

greater.
obsolete

On

your

new.

several

is

of

tion

of

demand

The rough han¬
dling on this ancient "blow hot
blow cold" equipment is driving
many to the highways and the air,
where the fatality rate per mile

Rail

gests

true

were

auto, how soon you would

something

to

•
.

$200 million, over $6,000 per car.

-

•

the

life

bridges, rails

of

and

the truck.
It

is

»>.

vr.

symptomatic that but for

the courage of General Motors in
hewing to its own design, these
diesel savings responsible for all
railway profits, might have been
lost because railroad motive power
men

sought

to

inject

Continued

their

on

own

page

28

Volume 175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1501)

#

!•

to

production at the 1944

per capita taxes was $75.7 billion, our popuaccompanying in- lation used $49.2 billion of this for
crease in purchasing power, while
basic living costs, the necessities
entirely
possible of attainment, of food, clothing and shelter—the
will remain only a dream unless remaining $26.5 billion was avail-

We Can Have

level

Sirong Defense
With Higher Living Standard!

the"

and

demand

goods

By ARNO H. JOHNSON*

duce

Vice-President and Director of Research, J. Walter Thompson Co.

and

■V, Mr. Johnson contends
i

-•*'

"jif;'/ creating
ments

•

..I
.

'

purchasing
not

of

74%

in

power

with

real

in

creation

1952

com-

1952

mean

disposable personal income (after
Federal and local taxes) available

Real

power

dairy products,
because

posable

with

even

ample

increased

be

ere-

moving

up
lg
income
and

i

p e n d

n

g

continue

to

food

habits

and

_

leaves

far less

capita in 1944

per

tools of production

our

were

real

purchasing power in
in terms of
dollars, or a 57% increase

1951

a

of $119.5 billion

1940

In other words, the potential
civilian market in terms of phys-

services,

or

Production in 1952 at the mini-

tools of production that

obsolete

or

in improved quality, is 57% above
the best prewar levels.

adequate.

We entered World War II with

fully

This still

in over 1940.

opportunity because it would

actually reached

and

items

To

maintain

J

7

,

x.

were woe-

inefficient

period

of

have

r-arirfQ'

Virrrlai'

of

r

real

varied

in

families

standard

same

inflated prices would

$107.0

billion

$49.2

billion

because

Income Groups—

and

because

population

fbe"ar-.

to

^eed,

Highest fifth
fifth

Third

fifth

77

in¬

Fourth

fifth..

98

necessities

Lowest

fifth

68

of

of

the

clothe

Total

ana

billj°n

$107;°

b wever, provide for the
in physical
""^,pef0P.erS1°oIioand 0t the Sam£
qual,ty as ln 1940'
in

could

reach

the

Shift Provides Increased

Market

Potentials

Between
were

upwards

annual

1941

some

^t'^7ldUaLV,^
a prewar

.

sufficient; Tor

income t

full

dis-

much in a

rate

of

$237.0

billion

in

the increase in personal

families

after

even

and

1Qf\

nOWare irira

position to select the
items of food they want;: f
;
i e-s^prewar
(193fr-36 andr'1941)

on-

'a

sample

in

different

families

of

:

broad

income groups gave k good indication of how
per'capita con-

sumption of certain dairy products
varied by income groups.
Analysis

of
these prewar spreads in
consumption shows the opportun¬

the

distribution

end
er '

exist after the
-

In

of

*

World

1920, for example, the

nearly

with

$2,000

increase

an

ity for expansion in markets when
income

distribution

,

Those

ward.

with

tionary spending
actually

capita

per

high

the

mean

of

capita

continued

proved

1944

expansion

goods and services

$60

billion

would

The

for

reflection

after $55

defense,

for

purchases

investment.

civilian

of

even

for

allowance

ernment

billion

rate

wartime

gross

over

to

greater

no

national production
$347 billion-enough for

a

ample

power.

1952

in

per

In

as

products

those with low dis¬

as

Production

possible

twice

over

cretionary spending
than

prewar,

dairy

of

up¬

discre-

power,

consumed

pounds

many

moves '

figure

defense

is

stron§er financial position of both
consumers and-, -business..
Between 1940 and; 1944, our labor
|:°rce ®xpanded
19 p11!^00 from
'
md^ian m °^der
J? meet the demands for produc¬

gov¬

private
of

used

$55
as

a

in

order to

Forces

14,009,000 in 1941 to
36,400,000 in 1951.
Increased taxes,
cut

heavily

of course, have
the income oi

into

those who have moved above tht

$2,000 income level., After taking
income

Federal

taxes

390,000

to

a

.

In 1941» only 1»564'000 consmnel

^

spending units had incomes over
$5 000 before taxes;

ity

Federal income-taxes;}. In 1941,
there were 5,703,000 with incomes
over

is-available, needing
guidance in selection of items that

an

$3,000 before taxes;

440^000,

or

million,

however,

can

have

War

II.

the prewar level with-

over

Discretionary

Power Can Be

;
In

Spending

414 Times

1940,

when

personal

our

total

4

The

R-(Tf

57%

-

v

increase

m

real

taxes and increased

one

families

income

rapidly

santial

„

is- onnortunitv for incroaseH savings
disopportunity for increased savings

income after

When

pur-;

chasing power in 1951 compared
with prewar 1940 has affected the

the 1940 Level

posable

Power of All Income Groups

\v;:

•••
1952

An ^crease in Real Purchasing

in 1951 compared with 1940

group

this

as

prices^..-V*'-"'
up from
to the next as

move

there, is

increase

in

di

ft

ft|p

leased
increased

V

costs

.

^

th

This announcement is not

living
on

(Armed .Forces

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

$10,000,000
Province of New Brunswick
Lv'

:

In 1944, our civilian labor force

CANADA

Armed
Forces)
54,630,000 or 39.5% of

total

the

\Vz% Twenty Year Sinking

the

(excluding

population,

1951,

our

but

as

civilian

of

Dated

Fund Debentures
Due

April 1, 1952

April 1,1972

labor

Price 98.702% and accrued interest

Message

The

Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

*.

our.

capita

per

be

productivity

in-

creased from $770 in 1940 to $1,235

in,J944 (real gross national prod¬
uct

divided

by population).
A
capita productivity for

similar per
our
a

population in 1952 could

gross

billion

dollars,
current

the
ard

mean

national product of $193.0
in

1952

or

over

in

terms

$347.0

of

1940

billion

in

dollars, and could provide

purchasing
of

power for a stand¬
living approximately 10%

above 1951.
With this level of

production the

considerably

production

.

of

address

by Mr. Johnson
before
the
Executives' Conference,
Na¬
tional
Dairy Products Corporation, Hot
Springs, Va., March 24, 1952.
an




in

1952

than

in

therefore

HALSEY, STUART &*CO. INC.
SALOMON

UNION SECURITIES CORPORATION

BROS. & HUTZLER

should be looked upon as a mini-

0

opportunity we are capable
surPassmg t emIt

should

be

in
speaking of production and poten¬
tial

increases

major

source

noted,

in

manufacturing

of

also,

production

alone

productivity in

is

that

not

the

production

and

our

economy.

In

pre-Korea 1949 only 25% of our
employed civilian labor force was
engaged

•Part

higher

The figures shown here for

1944.

in

manufacturing and
manufacturing represented only
29%

of the total

But,

even

national income.

the minimum level of

LEE HIGGINSON

CORPORATION

HARRIS, HALL & COMPANY

BLAIR, ROLLINS &. CO.

COFFIN & BURR

INCORPORATED

INCORPORATED

HORNBLOWER &. WEEKS

HAYDEN, STONE & CO.

(INCORPORATED)

STROUD

PAINE, WEBBER, JACKSON & CURTIS
AMERICAN

& CO.

BYRD BROTHERS

April 9, 1952.

THE

H. M. PAYSON

& CO., INC.

THOMAS & COMPANY

MILWAUKEE COMPANY

COURTS & CO.

COMPANY

INCORPORATED

WM. E. POLLOCK

SECURITIES CORPORATION

A. M. KIDDER

&

&. CO.

to

page

an

The

taxes

present
the

COStS Ot living 10 l^e
Continued

and increased standard of living

sub-

a

discretionary

stood at 1,337,000 in August, 1950.)

August,

as

after taking into account increased

.

...v".-

a

Force

2 million additional

drawilJS

averaged

24,-

times

means

from the labor force instead of the
riearly 12 million withdrawn from
?be
smaller labor force m
World

now

four

over

increase of 57% in real purchasing
power

through increased productiv- out interfering with defense needs.
we

parted put
^ !? ?n

Armed

~

living

considerably
higher standard of living. M

-

power

.Bo^our
econ- could
demonstrated

budget esti-

President's

ing

present de¬

plans for

3V2

7,280,000

now

have incomes 0ver. $5,000 after

and still leave enough for an in-

which is capable of expanding by
a*
*ea^ ® million Our
more to 71 million if needed.
of

ac¬

startling shift upwards in iri-

come groups.

a

force was 64,208,000 or 41.5% of
the population.
Hence, to reach
to Congress on Jan. 17, 1952, pro- the same per capita production in
posed a rise from the $45 billion 1952 as in 1944 would require actulevel of defense expenditures at ally less productivity per person
the start of 1952 to $65 billion by m the civilian labor force.
But,
the end of the calendar year 1952 with the better equipment and
—or an
average of $55 billion.
know-how, the productivity per
In terms of constant 1940 dollars Person In the labor force should
of current

The

mates.

that

war.

has

already

omy

In June, 1950,

on.^e °}h^r hand>
wjf. .a. *ah°r ^rc^,

fense

into

count, however, there still exisk

the

increase

from

peak of 12,130,000.

and

other
and

conflict, therefore, with better
Pn?n
ve ?q-l}lpmciU wia" 111
}94.°'ra muchvtorgfer*. and better
falne labor force and a much

Armed

this

in

from

group

timfesythel94Q
level,
— —1

seven-

spending

consumer

.

started; on a per capita basis real
purchasing power was 9% lower

than before the

e,

..

and

of

Over

real purchasing power of the crease in consumer purchases .of many have incomes over $3,000
Zer
P°P"lation was 1% under what it'goods and services. - after Federal taxes.
v
V
similar five-year period had been in 1913 before^ the war JThm, a large pool of new buy*:; The net of these shifts was an

Pillion m trie period 1947

tion

there

units moved up to the level above

capita levels of 1944 joyed before, or improvement in
would yield - a total disposable the basic standard of living .in the
income of over $237.0 billion after form of more Or better quality

'

'xL

.

1951

by income groups.

million

22

taxes, so

the consuming public would have
$130 billion of discretionary buyinS power over and above what
would be needed to provide the
necessities ^for a 1940 standard of
living. This discretionary buying
power (over five times as great as
ih 1940) can provide for increased
savings, additional items not en-

de-

_*146 3 billimi iri the neriod 1947-

crfctionary selectivity of diet. The;
majority of American
families

Both

significant shifts

very

standards' however' tion has been
improved by the ex-:
crow be the prewar amount actapenditare of
four times as
ing in families that, had

for

Savings and Goods

disposable personal income

1952

57%

.......

Income

consumption

But

63

_

increased

'

sa™e

194.

vs.

38%

Second

the

of

Th1s

a.

Real Income

(1951

re-

instead

these

of

units)

in Total

the

quire

prices

quintilt

(spending

% Increase

living per capita for food,
clothing and shelter in 1952 at

flated

disposable

income

1

mum-per

^^.^^^^^
^^ ^ot
P131*''
W a
equipmem.,
,•

increase in

follows:

.

dairy industry. shouW^ccept

#«!<

long

a

The

income after taxes is estimated tc

0f

present

moiY

groups.

making

taxes» or a real PurchasinS P°wer ^ems °V00d'Ciot^infKan? Sh+eLteu
former income group unless ?leir pression and limited expenditures of $132-° billion in terms of 1940 Personal savings in the first half
tkey for new Plant arid eauiDment 'In d°llars—a 74% increase over 1940(
i?31 at $14.6*billion was at a
educated^0 want and
lifcejthe eKfive-year period 1937-1941, and 10% over 195U^ ^ ^ ^
- lqV<7
u
*im£s
W0 level of
(better-diet they-can riow;afford.:.
pid6r t0 world War II, only $356 : This condition of 'a. major in- $3.7 billion.. Personal savings in
\u£ii3billion
had been spent for pro- crease in-purchasing power did 1952 could reach $25 billion, or
the
folioWing

groups—but

^

mini-

a

total

other

income

resented^ personal savings in 1940.

$100.7 billion of this total

or

pated through inflation.

an

living

1951

nearly three

or

require only reaching the level ical units of goods

tend

the

of

1952 should be considered
mum

discretionary* when
power

standard

of

personal income after

disposable income has been dissi,

provide for defense and

half

first

Purchasing

74% Above 1940

$220.2 billion,

half

1952

in

Consumer

times the total of $75.7 billion in
1940.
At present prices, nearly

The level of productivity necessary to

s

of

year,

could reach over $237.0 billion.

the
must

prewar

income

personal

chasing

power
demand

best

our

the

through

taxes reached an annual rate level

In current dollars, the dis-

1940.

pur-

ated...Families

Arao H. Johnson

of

the

disposable

a

in demand for

and

desires

new

Power Can Be

does to consumers would total $132.0
similar billion in terms of 1940 dollars or
increase
nearly double the real purchasing

automatically

savings.

or

all

all

particularly in the middle income

the 1940 standard of living or
$3.7 billion of this rep-

up

legislated

education

of

of

for

pro-

advertising and selling.

(1940)

prewar

be

able

This

come

result

a

In

>The' increase

pared

*

can

we

change in the standard of living

as

demand, and cites basic marketing develop12 years indicating steady expansion of
potential consumer buying.

last

over

services

the

for

by government deficits—
voluntarily through

must

*

1

►

a

consumer

i*.

;

it

tools of production were

our

created

cannot

created

by reaching productivity level of 1944,
far less adequate than at
present, we could not only provide for defense, but also raise
living standards. Holds much depends on maintaining and
when

cm

is

beyond military needs.

demand

in

its

MACKALL &

COE

28

J4

(1502)

The Commercial and Financial Chronicle

Approx.

How Stocks Have Fared

'

,

;

-

• ■

.

:

—

Undei Eroded Dollar

International Iron

article has been pub-

lished

recently
depicting
wrought on the

devastation

chasing
the

holding

government
bonds

fixed

ties,

.

other

or

securi-

counts

or

cash,

it

been

J8gfj•

plain
has

■■

1939

is gener-

ally

looked
as

the

beginning

of

the

iilp' "js

Sam Glasser

stocks

the

where

dollar

today will only buy 53

cents as
it did in that year.
Va-

much as

rious

charts

been

set

tables

and

forth

have

illustrate

to

sold

lower figures in the

>

to

enumerated

that

purchases of many securities and
other tangibles in 1939 would

therefore

and

bought at lesser
theless, someone

have

many

the

at

established

points,

_.

foolhardy

tion

idle

funds,

come

or

having placed
switched fixed in-

investments,

medium

that

pace with the

into

might

kept

.,

considered

to

purchase

appiies to

,.

.

Potion.

rise in the general

price structure.

be

game

some

have

;

a

recommenda-

or

sell, and the

the entire
..

t-Air Reduction

is cautioned if

j

any

v

price

High

High

High

59%

34

> 10

Car & Foundry-Hide & Leather

35

34%

40%

72%

5

5%

American Locomotive

19

30%

American

16

19%

American

—

Foundry

__

Tel. & Tel

^American Tobacco
Artloom Corp
Avco

10.0

30%

44%

8

7.7

18%

23

15

'9.2

48

6.2

50%

11

7.8

156

150%

171%

200%

70

58

91%

89%

100%

47

6.5

9

8%

10%

10

10.0

Bon

Ami

B

10

Calumet & Hecla

*

2

50%

29

30

..

8%

9%

14%

10

8.1

10%

13%

17

7.4

121%

15%
112 1

63%

69%

107

52%

43
~

45v

72%

50

7.0

16

20

29%

16%

3

4.6

5

6

4%

12%

2

6.6

19

24%

27%

47%

104

5.5

43

75%

84%

86%

37

5.0

,41

39%

41%

69%

24

7.3

33%

37%

24

11%

28%

9

17

16

15%

20%

12

91

35

37%

31%

53%-

17

10.1

18%

24%

11%

26%

4.

9%

8%

14%

35%

32%

56%

37% ;

15

86%

49%

22

36

—_—kkk

38 i

——

---

_i——kii

i

72;.

78

85%

82%

38

6.2

Youngstown Steel D———

16r

31%

34

31

24

7.6

Adjusted approximately for capital changes.
tBased on 1951
$Financing recently, - prospectus available. > ftStock Dividend.
-

forcing of Federal Reserve
In

23,

a

in

radio

broadcast

March

on

his

bi-weekly series, entitled
"Talking It Over,"- Sen.
Paul H. Douglas
(D., 111.), a
member of the

^

on

Report, and

a

Pro-

of Eco-

nomics., at

the

University

of

58

4.8

the Administration's policy of forc¬

7

5.4

ing the Federal Reserve System to

30

8 0

purchase U.

20

6.5

keep

34%

35

36

45

49

51%

69

70%

67%

blame

S.

28

4.6

"overflow" of money.

75%

31

5.1

51

32%

35%

44%

52%

54%

7%

13%

12%

24

28%

32%

34%

19

34%

$4

29%

15

16

13

33%

381/2

36%

6%

21 %

'

Explaining

^

11

10.7

15

8.7

17

4.0
4.0

„

16

8.6

the

Treasury-F&eral

7.4

which

createH

'

65

71%

31-

6 4

to finance this

Pen!™ r°°,
Railway

43




in the
Reserve policies
steps

^

the

inflationarv

inventories and supplies/

59%

buying

25%

40%

41

e'.2

went to

40%

4«

56%

15

5.5

when the

27%

28

48

11

10 4

40

41%

41

36%

11

4*8

32

37%

34%

Is

Bi

reserves

14

7.6

increased demands

reserves

spree,

of the banks in

the Federal Reserve System dried
up,

the

33

34%

33%

34%

17

7.5

22

do

22

22%

37%

43

54

36

39

fourth,

45

40

6.9

25I,/4

21

34'/2

10

6.7

66

661/4

56

5

5.8

igy,

17y

28%

5

96

35%

40%

49%

39

66

.

Second,

they
the banks for loans. Third,

27

261/2

to

private persons and companies, fearing shortages and price
rises, rushed out to stock up on

28

38

% bonds

Reserve: stopped

the

in

result would

be

buying

the

market,

open

disastrous drop

a

and a collapse of the efforts of
kthe Treasury to sell the bonds and
>

refund

to

,

-that

the

has

bonds

debt.

In

fact, all
that the

happened .is

been allowed

have

sink

to

gradually, by a small amount, from
a

.

little

100 to

over

sales

Treasury

a

little

still

are

over

97.

satisfac¬

,

the

on

on

to raise the interest
but we
prices,
position is that it's better
stable prices even though

necessary

and my
-to have

Reserve bought the bonds, this in.•

slightly rising intera sta
interest rate and have rapidly ris-

creased

in£ Prlces-

bonds that private business would
Therefore the Federal
the

of

reserves

this

it

made

member banks

to

Reserve

member

possible

loan

means a

est

The
the

above

Senator

thing as
giasses 0f

which,
ment,
full

r

the

stated,

to
money into

because

of

an

economy

full

employ¬

only produce

goods.

over

prices

comes

of

The

and
of

very

is

three

pour

one

extra

used

to

goods.

It

difficult

to

,

i-

.

glass

D-

M

tSSlGffl-: r3i

OliM

ill

IBA to Meet
PHILADELPHIA,

policy

of inflation,
"is the same

trying

can

spills

process

its

*an J,

rate

for

and

more,

changed

third

of

Bankers

America

Philadelphia,
1952

will

to

announce¬

money

DeHaven & Townsend, Crouter &

bid

Bodine, Chairman and Robert G.

then

up

be¬

mop

up

Rowe of Stroud &

Company, Inc.,

Vice-Chairman of the Committee.

and to eliminate the

Among the Committee

prices it creates."

who

Senator Douglas pointed out in
his broadcast address that because
banks are only required to back
up
each

in

25,

by Gordon Crouter of

pressures

on

held

April

Bellevue-Stratford

according
made

Associa¬

be

Friday,

the

at

Hotel,
ment

The

conference of the
Pennsylvania
Group of

Investment

the

Apr. 25

annual

Eastern

tion

"

Pa.

this surplus,

over

Chairman

completing arrangements

are

for the sessions
500

which

investment

the conference
Finance:

$6 of loans with $1 of "re-

serves" (in the form of deposits

will

bring

bankers

to

are:

John

F.

Jr.,

Bunn,

Bioren & Co.

^

Korea,

17

18

Sen¬

trend

55

21 y4

topic,

^ Federal Reserve) every
Publicity & Press: William K.
purchase of bonds by the Fed- Barclay, Jr., Stein Bios. & Boyce.
Senator Douglas said:
eral Reserve from the bank adds
Arranffements: Samuel K. Phil"First,
immediately following
bank reserves and expands iipSj Samuel K. Phillips & Co.

§16.0

-

war on

bonds in order

53%

29%

for the

their prices.
This, the
maintained, created an

up

Transportation
General Cigar

International Shoe

placed the

Senator

37

5%

Douglas

5 8

25

353/4

Sen. Paul H:

58

-

this

on

"Many had predicted that if the
•Federal

not take.

the Economic

143

34

thus

inflation.

of

ator Douglas added:

and forced the Treasury to accede
and a new accord was concluded."

Committee

39%

4

fires

stability of prices."

Continuing

gressional

142%

1

relative

eral

21

58%

and

sprees

the

to

powerful force contributing to the

the Joint Con-

107

40%

buying

-

"

-

the outbreak of the Korean

30%

to

up

1, 1951, helped finance the

And the cessation of this policy in
the last year has been a very

Monetary

6.2

2J ?
«/•"•
19
HS??8
—36
Houdaille
Hershey
13

scare

the ^increased quantity ;of-bank
Policy
and credit forced up prices. This polDebt Man
'icy prevailed for eight months
age/merit of until March, 1951, when the Fedon

28

60

sudden

"

distributions.

post-Korea inflation
buy government bonds.

to

banks,

Subcommittee

60%

29%

tremendous

;rate by one-quarter of 1%,
have "attained stability in

38

64

the

Senator Paul H. Douglas, member of Joint Committee
Economic Report, lays blame for

25%

23'

that

^increase in money supply

tory, the. refunding program was
carried through.
It is true that it

29

23

not

Assails Administration's Credit Policies

monetary inflation which followed

58

did

[ develop to the degree to which
~they were expected. But my point

i

62

63%

diminished, price
part, and

~

18

Harbison Walker
Hazel Atlas Glass

.

Wrigley

Chicago,

200

were

in the prices of government bonds

5.9

44%

19
13

psychology

played some
anticipated
shortages

5.6

7.0

60%

£,t!netStUfr

3

76

60%

Signal...
General Refractories

39

•

40

33

Genera

6.0

62%

Climax Molybdenum
Cluett Peabody

5

40

31

7;7

Motor Truck

29%

50%

6.9

Amer.

8.3

"53%

13

Gen.

40

6.0

25

43'

16

23

28%

46

47%

25%

^"7

37%

84%
60%

32%

53

Sf
Federal

87%
.49

32%

15%

37%

I

vacuum.

a

the bond purchases

as

controls

6.1

.

29%

41

_____

ing

7.6

34%

19%

Evans Products

that this credit expansion
went on in

§

13

51

,

re¬

slackened off, because panic buy¬

6.2
•

2-3:

17

>

Douglas

k

42
37

__

Westinghouse Airbrake

39%

"

United Shoe Machine— —:

43

9

.

U. S. Pipe

Chickasha Cotton Oil—____

Curtiss Wright
Curtiss Wright A
Dome Mines-.

"■*'

35

Senator

added

41.

31

Re¬

process

prices

6.0

45

-t

"ac¬

which

that it accounted com¬
pletely for the slackening off of

I

17

80%

tessor

15

Crucibie Steel

40%

66

——_

the

Federal

Treasury,

'
—

49% -51%
ii ;■>■
io%:

70%

t.

the

not say

March

52

10

„

7.7

13%

—

27

9%

*

and

the

do not say

8.0

29

1

13%

Wheat-

11

serve

is

15

the period since

on

following

between

"I want to be careful, and I do

—

26%

•

4

of

5.0

18

12%

60%

12%

9.8

Cream

27

29%;

9.

12%

10%

6.6

Corn Products

7.1

54%

10%

35

^Continental Can

6.0

95

13%

9

30

____

44

47

55%

former

66% >

Congoleum-Nairn, Inc.
^Consolidated Edison

46%

1951,

cord"

System,

6.5

10

5 0

29

Commercial Invest. Trust—

'; <"

8

33

„

47'

30%

—__

45

months

marked:

10.0

46

—

21%

47%

_____

46%

38%

-

29

i

:

Twin Coach

18%

28

Collins Aikman

12%

6.5

22%

38%

Coca Cola

36%

-

33

„

18
20

—

*

eight

ended the "forced" buying of gov¬
ernment
bonds
by the Reserve

10.5

__

7.0

„

36

Chile Copper

17%
54

9

K 7.2

Central Aguirre

—

19%
49

-

5.7

Chesapeake & Ohio
Childs Co.

34%

9.0

19

20

i;

7.0

the

Commenting
March,

—

14

15

50

-

—

M

32%

31

during

after Korea."

r

5.8

__

12%

69

A

Bridgeport Brass
Briggs Mfg.
a.
Burroughs Adding Machine

8

41

Ami

King

-

1

5.8

61%

Bon

35%

15%

10

24%

21

a.3%

40%

8

23%

ii

20

55

fYield

35

10

21%

.

29

con-

38

Bayuk Cigar

8.7

—

-;

Div. Pd.

45%

Steel

21

37

Consec.

17%

American

,

"If >40

6b

American Snuff

.

%

*V.m

23y8

Radiator

prices

was

*1938

67%

American
,

.

com-

action is

18

American

15

24

No. Yrs.

Current

-

45%

11%

,

Spiegel
-U
Standard Brands
Timken Roller Bearing-

templated.

26

:

45%

12%

:

investigation

Note

American Bank

37%

—

Woolworth

•

.

Complete

Approx.
STOCK

*12

Wayne Pump —__i;L

are

amonS those listed, they are not

not

6.1

34

Vanadium

_

lar. Looking back, therefore, many
an
individual
must
indeed
feel

to

8.0
7.3

16

———

U. S. Tobacco

,

big companies

many
■

16

31

21

„

-

United Aircraft

distributed valuable rights.

While

,

33
102

8%

-

Underwood Corp.

panies paid liberal dividends and;

in

13%
108%

8%

—

been

Attention must also be pointed to
the fact that many of these cornsome

in bank credit and the increase in

0.9

9

-

Sperry Corp.

bought

high

9.3

18

7.0

"

h?/efrilen1in
sufficiently
offset the lossv-aluft
the
eroding dolin

"14%
102

10

6.3

Spear & Co.__

values. Neveror

__

Simmons

_

shown,

years

could

14
67

:

17

.

-i,—-

Servel

much

at

_

Scoville

At

issues would

same

19%

24

.

Reynolds Spring
Reynolds Tobacco B

show sizable losses today when
the dollar is worth even less than
seven years- ago. Of course it must
P°inted ou^ that all of these

yj
lB3j

'Ppfifr

of these

___

Reed Roller Bit

.;

sharply in
1946,
as
shown, and could have been sold
very

year.

16%

24%

20

__

Silver

inflation-

skyward

1939.

1many

spiral that has boosted prices

ary

Pullman

that

16%

17

to have been a very clear
relationship between the increase

seems

65

_

stocks

profitably in

20%
36

17

by 16%,~

up

by an identical pro¬
And
therefore
there

5.8

—

43%

-

Shattuck

^

Western

Penn. Water

point in

17

19

-

Airbrake--—.

purchasers of particular common
the high

13%
42%

43%

North American Aviation.

the

to

5%
55%

'

New York

I,
£ the same time however, purchases
W&mmade at the high level in 1946 in

pjlk

year

did,

and

5%
57%

21%

Nehi
New Port Ind._

happened,

4
45

___________

Norfolk &

very

prices went

virtually

or

tYield

49%

New York Central—

True many of these same stocks

'A "

reading.

Natomas

a

at

Div. Pd.

Thursday, April 10, 1952

.

* wholesale

,

Consec.

High

30
tj.„.

—

or

rose

mighty

upon

/

4

Madison Square
Martin Glenn

Pennsylvania Railroad

*

ac-

dolorous
The

'

1&4-

building
loan

and

JT

.

High

20

-

Macy

have

*

•

,

H.

Packard

To

years.

R.

lack of knowledge of securities
a feeling that
inflation would
be shorter lived.
The following
statistics
disclose
what
could

over

12

p a s t

those

of the dollar

power

pur-

..

Liggett & Meyers
Liquid Carbonic

Here, however, is some solace
to those who conservatively clung
to the safer isle either through

the

.

High

v

Glasser, in presenting a table of selected stock prices since
1938, indicates that purchases of many issues made at the high
level in 1946, show sizable losses today, when figured in
present low purchasing value of dollar.
an

..

Lehn & Fink

!

Mr.

Many

..

Kalamazoo Stove

San Antonio, Texas

t

...

International Nickel

I.:-.By SAM GLASSER

f§

*1916'

r

Price

.

portion.
Intercontinent Rubber

•

No. Yrs.

"

Current

' A

•

STOCK

.

this

had

banks
if

they

to

get

more

were to get
for loans.

the
To

t(L mf^e.

theoretically, by $6.

"As far

Invitations:
as

der, Peabody & Co.

'money

send, E. W. Clark & Co.

in

the

bank'—money

sold

bonds.

the

And

Treasury

Guests:

William

to
spend. • Thus, these loans must be
considered
as
very
similar
to

ner:

greenbacks

Yarnall & Co.

ply of
The

so

money

far

Senator

the $4 billion

as

the total sup¬

Attendance,

is concerned."
then
of

added, that
purchases

bond

by the Federal Reserve in the
eight months following Korea repoint of view then prevailed, that suited in an expansion of bank
is, of keeping bond prices up and loans by $10 billion. "This is the
interest rates down, the Federal interesting point," he said.
"You
Reserve was forced to step into have an increase of 18% in the
the market and buy up all the quantity
of
bank
and
credit,
they

because

Alfred Rauch,

the borrower is concerned,"
Doug¬
las
explained, "these loans are

Herbert

H,

Luncheon
V.

B.

Forums: Robert G.

&

P.

Kid-

Town-

&

Din¬

Gallager,

Rowe, Stroud

Co., Inc.
Speakers:

Haven

&

Gordon Crouter. De-

Townsend,

Crouter

&

Bodine

Reception: Edward H. York, Jr.,
p

CiPo1Wpi/

^rexei & co.

_

Miss
Thayer, Baker & Co.
Reservations:

Jane

Hill,

Volume 175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1503)
Weather may have been on our

The Importance of Agriculture
In the Economic Picture
By LLOYD

C.

side, but
ter
xer

soil
soil

In

HALVORSON*

agriculture is nation's largest industry, Dr. Halvorson reveals
rapid increase in-farmers' capital investment,
thus enabling a reduction in farm
population. Lists other fac¬

rest

our

In

Board

basis of management and

and

a

raise

Favors

for purpose

Today many people have the
mistaken idea'that farmers are all
liavc

part of output to lower

a

of

America

w

necessities

with
W1LU
and

net
*

its

of
Ui

ernment

unable to get gasoline and oil for
his tractors, the price of hoes and

pro-

Some

grams.

People

tWOdld

farm

^

farmers'

them

by

the

to

want

make

it

JLli/yu v.viia.vorsoii

clear

a

of agriculture

calls for

un<^ei

Pr0gram

sort

some

Government

authorization.
authorization

•Agriculture
in
of

the

the

$143

United

The
Jan.

on

land

and

most

of

forest

the

in¬

1,

Z0

to 7.1

mil-

million

ment and
rP<;nprfQ

in

1939.

plished

How

in

this

was

view

of

accom-

decreasing

a

1952

40%

from

1939

to

in

1951

the

in

labor

force.

and
and

mucn

.

Participate

Grazing

account

for

remainder.

Cities,
railroads take

Post-War

in

Prosperity

t

had

you

are

m

,

ress

in

tnan

their

on

farm

and

his

15, billion

farm

the 4

or

left

to

produce

in

labor,

operators

receive
as

$1.60
did factory

x

•535

we

.

that net

see

operators would
billion

$14 9

in

1951

n

income

have

of

been

instead

"t 1935 as I did, you would marat the mechanization that

of

exists today. This has made

pos-

tech

considerable

n

i

c

a

many

the

hv

cnmmprcial

of

Qvstcm

the

have

Federal
incrpascd

of the land

l

area,

would

area

not

and

could

have

not

^

As

a

person

States

from

the United

crosses

East

West

to

and

South to

it is

North, he is apt to think
big country and it should

a

be worth
land

lot of money. All farm
buildinffs in
buildings
in the
the United
United

a

and

States
lion

Jan

on

hard

valued

were

1

1951

beiieve,

to

at

$72 6*

It

but

is

it

bil-

rather

is

true,

that the money Congress is likely
to appropriate for fiscal year 1953
would

land

than buy all the farm
buildings in the United

more

and

States.

Increase

thov

aro

ing*

agriculture

or

wf.'t'be

for

as

an

^'selk

fotced

-necessary

have

to

modern

buy tb^ machines, and the
terms of trade were such that it

Capital

investment
farm

in

will

investment

already in

country and
culture

a

vested-

in

This

farmer

continue

parts of the

some

some

in-

trend in

types of
has

agriin-

more

In the bottom of the depression
farmers were really mining

few

a

dollars
The

capitai

industry

credit for

through

other

than normal
normai credit markets.
markets

brought

Farmers
la mers

Are
A
e

Seedbed
beedbed

the

working people
agriculture. In
everyone was

order

fiber

time

to

needed
went

varieties,
made

those

needed

by

on,

days

the

in

most

farms in

on

the

new

and

farmers

engaged

were

produce

six

food

nation.

methods,

and

As
new

new

machinery

more

productive.

Per

man production in
agriculture
is'so great today that about 10%
of the labor force can produce

rnost all the food and fiber needed

by the other 90%.
lease
fiber

of

people

production

It is

from
that

tremendous industrial

~57address
the

New

alysts,

allows

re-

by

the

Dr. Haivorson before
Society of Security AnYork City, April 9, 1952.




conservation

who

name

I

with

don't

populacapita in-

announcement
•

dhich

may

NEW

in

Before

was,

lacked

the

xran^ni®e

Ia\ ine aibino-

trade that would

vent

"destructive

aesiruciive

rru

"Law

course,

the

of

7^

u

to

Lorapeuuuiv
from

15

J

We

are

now

getting close to the

problem; but,
first, why have labor and investmppt

returns

heen

relatively

so

aSnculture. Does agncul-

have

some
peculiar,
disadvantages? The

yas'

deep-

answer

duction in

accounting for
agricultural pro-

a

farmer sells his Prod"

+be

if
u

seller
a

j

has

farmer

established,
back

the

in

iarmer oacK 1

recent years

agricultural research.
Agriculture is
characterized by such small units
that

no

research
quence.

farmer

could

program

Hybrid

of

was

.

paying as well as industrial wages
as carpenter's wages, he might

or

leave "the farm to take
advantage of equal opportunityand get equal pay for equal work,

Well, first he might have to try

to get into the labor union, and
if he did he would then have to
try to find work.

inertia being what it is, there

may

end

many

farms

pro-

someone

ducing

and

the

farm

people

sharing

on

in

demand for farm products. Third,
advanced rapidly

back
else

He'd probably
farm

with

coming along

back

on

the

wjtb him.
It

abundantly,

the total
farm income goes down instead of
more

up

is

interesting to hold before
f|gures on dle indices of
produ'cL0n during the 1930s. The
index of industrial production fell
Qur

eyeg

Continued

technology has

on

lot and

we

are

carry

any

registered dealers in this State.

on

these

several

shares have heen sold.
Subscription Warrants for these shares were issued
holders of the Common Stork of the Company. Warrants for 396,472 shares were
during the subscription period by such holders and their assigns (including the

Underwriters).

The

several

seeing

Underwriters

purchased from the Company and resold

remaining 13,649 shares.

a

conse¬

Glore, Forgan & Co.
William Blair & Company

Blyth & Co., Inc.

Eastman, Dillon & Co.

more

more
of weed killers.
Production of milk per cow and
production of eggs per hen has gone

The First Boston

,

«£ Livestock and plant diseases
^»7OUld

as are

to

corn

complished. New insecticides have
a

offering. The offering is made only by the Prospectus.

April 7, 1952

is only one
example of what research has ac-

done

an

be obtained from such of the undersigned

($5 Par Value)

the

SOOn get the best Of
without COntinUOUS research.

US

f

Corporation

Lee Kigginson Corporation

_

Merrill Lynch, Pierce, Fenner

1930s

couple grown boys and decided that farming business wasn't
a

Common Stock

exercised

way

uctg^ he takes what the buyer will
gjve bim as the general
rule.
when he buys he pays the price

be too

does not constitute

the

Firs1t ?f f11' farm pe?ple decide" to

^r,e tbe seedbed °/ our Population,
tw0 ouA (° e\erX
children are 'surplus and this
ratl°, 1S ilkely \°. continue. These

duce

"n

little

equipment

The third factor
the phenomenal

oper-

™

mejrown%ery

ment,returns been so relatively had

some

of

i

tte'hTSLS
vl

?t2 ul

410,121 Shares*

*AIJ

the

prevent

Jungle"

*-

help pre-

competition"

aJjariK
^
^e50m?
"ack lots of profit 1^0^ «r

ISSUE

initially

up

franchise svstem for the distrib—

the soil

and financial resources required
for that type of farming,

one

jf the farmers would also set
a

another

and

consumer

think

would have trouble with too many
people in the farming business.

When

heart of the farm

program,
many
not know what con-

farming

did

and; and

production

York

New

this

food

brand

adopted,

was

Nation's soil.

servation
every

a

preference,

of
ot

Population

Contour farming,
terracing, water
runways,
dams, farm ponds, cover crops,
green manures, and fertilizers and
lime came to save and build-up

farmers did

of

bsh

necessary

conservation

revolution

a

buildings.
out

eraf i^mio°n°dollars to geU^the
busin^ss ^ H one Ld to estab-

of industrial stocks and bonds.

than n°rmal C1Gdlt marketS

aspect of farming.

and

five

while,

would

m

Iar™ p"L,es wouJa

in order to

for

soil

that

and

1820

This

the

equipment, livestock,
supplies than he does in land

In

per

a

nrirps

once

farm

1

in many cases cheaper to
pitch hay by hand than to buy a
bay loader.

program

machinery

five times.

creased

In 1951 the

?

was

expenses.

Between 1940 and 1951 farmers'

tha" 15% of the nation's

tion;

think

suf--•

farm-

not have
have the
pot
the capital
capital necessary
necessary :P pp

tp

get

In

Investment

and

taken place if farmers had not
Looking at this another way, we
enjoyed some of the Nation's post- find that in 1951 all, farm people
war prosperity. Back in 1935-39
many of the machines of today
Qme from all sources,-or less than
were available, but farmers did
°f tbe national income. Farm

the soil of this nation

Heavy

v' V'

.

don't

thS? wtate {^"gs
I

tobt
if

sible the increased production
^onssiaerjaoie tecnnicai
despite the loss in the labor force.
^ freallvshnfil/have
Cropland amounts to about 500 I want to stress this point, that
^d ®d comething in for manate ?u,rplu? farm children must seek
million acres or about one-quarter this mechanization of agriculture aaae,a somexning m lor manage- job? elsewhere, but with human
parks, roads, and
up less than 4% of the land

t

nres-

Short-term

income<

canital

is'

auires

with

Vnan«

ficient

seated

?armfn« 1!

us as

than

more

members

^

F°°r
ture

if' farm oner
P1111011; 11 larm oper,

biUion

r^pivL

12> one farmers with one or C
dominant
and
if th<*v
bad
?
fe domil?ant> and }* tney iiaa.

beinff

abont

back

vel

_

QtanH

of

1951, then their labor

income alone would have been $24
billion. Adding $24 billion to $11

onlv

farm

families

,

output

60%^^incTjanf 1950 Farm 1*% wh
,moftgag« debt is aiso increaslflig ited Mexico and, as you know,
hav'e to'develop'lranToUdes'ffia" M®?ic0,is f11 Primar»y a" a^"
^ rLoenfze ■that farmers will ?ultu4ral "aV.°"'

(in addition to
billion hours of labor

hour for

°/Ay.

the

banks,

family work at

hours

level

Rp^p

output
5

their

workers

in-

-b'elot?

are waY

outmt

°f each thfha^ds"
a2ricultural
commodity
of

u

De-

'

^

competitioi

faTm^ng
profes^T^6 If X
ig profession.
tl
larmm|
profession. 11 the

a8ncplxurai loans Dy commercial Then, of

about

their in-

has

people,

beginning to look to
can

correspondingly.

spend a .1Tm.ch smal]er Prot

1940

.

affHcnltnral

Z?™al0nl>
$11 billion. TheShr°Uld
farm

been

least

ent

equity in the manufac-

return

expenditures

nas ]unch together

fell to 100% of parity,

.

farmers

stock-

averaged

million

six

increase their fnod

peopie dld no,: increase tneir loca

.larmers ,can smna with tne pres- utiVe

mam,fan

vestment, before taxes,

an

as

labor

Doniilatton

since

capital
are

fair
rair

a

on

thn

pe0Dle did not

SHr^n&cur^
We

iarm popuratrcm

agriculture

many
a

by

prices

1S

fihe*-

UrouU
of The
""riSu°r
- entrepreneurs.
1

industrial

and. many cr°Ps

nnpr-

anH

v^eties pe^

was
P°rtl0n °f their lnCOme for food
*m a rivre s deels !?ow*har} they formerly did. Fifth,

In the t'Wo months" from
fmber'. 1951 t0 February-

oper-

to^have^recSrtd>'^£
of

and

naritv'
'

of agriculture

farm

about 20%

hiibil-

13% after taxes in the first three

billion

Farmers

If

IS

Returns

ennitv

Tbe

i1declined

fnnrl

Better

pure

farm

than

for

acres

as our standard of living has risen;

iSS

nrices
prices

ninp-tnnthc
nine-tenths

tunng" industry

the-

averaged

above

lyai

m

farm
iarm

investment

of return.

hnirimV

farm

farms

anct

of people in agriculture they hire). If the farm

the usUal tendency of soil to
become
depleted
and
eroded?
p00d
production
did
increase

and

about

lyau

m

million

pToduct.on

eq^a/Vay Sr Th^

of

equal work and
In ♦much too 'low"~I n

to $14.9 billion. With ^obs

rmirh

operator

eating about
capita wise than

basis

1929 **?***!

Hnllars
thp
1951
farm
dollars,
the
1951
farm

rate

prices

7%

^

*

andlnve'tment it
ifis
Ts'ho"
wonder
hTwonder

FnnrtPPn
Fourteen

have

we

There

and

land

since

the

0n

Farmers' Income Below Fair Rate

^ holders

:ulture.
agriculture

people..are,
per

to

re¬

1Pe tra^t0^ by

furincreased production. Fourth,

+

J?

'

a9hro'araknHW
:ealso
fnttmuch
and
know f«od
that

of land

acres

States

"for ~60%"~of~itT

account

mif

in

total

billion.

about 1.9 billion

are

in

largest

America.
to

million

farm

naritv

new'and

by

risinff ana
and
rising

costs
costs

respects

spite of the decbne

is

farmers

amounted

one

?

*

!951
of

The tractor bv

a?riSu/lure-

t

placing horses released about 50

not nearly as
during the 1930s

iqki

107

in agriculture

"bad ^ow Sdest and imProve,d livestock

is

was

tw

jn

*

nnn
on

it

as

not so bright. Farm prices on the

rate

9.6

declined

than

better

culture

relative Position
farm1 operators
-cort->nared
with
reached $17.1 billion
and Investment,

01111011

today

^bnt number

of the present farm program
but
I do believe the economic
position

dustry

clues

population has increased-

our

more

13%

from the start that I do not intend

assets

be

D1°

were

engaged

abroad,

farm program.
I

should

—

there

number

that

relate

to

If

remind

of

income

WJL"*
parity formula
$1.9' billion ZTt
aM-it .the-prvsent
Tmocledas"V" thermometer

to

S going^steon^',i''^^ ^S?toow

on

eco¬

to

1939

people
The

nomic position
and

„i-!«

In

opportu¬
nity to present
facts

"

to

serve

™ popula

capita

per

^

very biff
highcities
and ators'
labor manaeel
afP^"® ineome
income for
for labor,
manage

the

01

,

only

living.

of the cliff dwellers.

I

this

some

P

«

would

for

you

farmer

scythes Darts
might ofgo

program

thank

American

manv

away with the

entirely.

the

try

the

American

of

to

weakening, prospects for 1952

getting rich, either through soaking the consumer or through Gov-

standard

income

up again

farm
iarm

for

a

faC'fto aSdto wsl' Ihat
the fan2
PfTIe
aTeindustrial
farming
and
taking

27
aj
$12.

output
uult,ul

il5

had

Farm

merchandising methods.

income

was

uses.

luxuries

Federal

d^-f?LroSera^7
until 1942. In 1947

-

investment, is less than a fair
Pleads for flexible price floors,

of diverting regularly

the

established

down

was

two-price system for farm products, but not

a

1929

farm

T:

government storage program to level out erratic farm

prices.

tion

$6.1 billion, and at

was

was

better

contributing to greater agricultural production: (1) farm¬
ers' participation in
postwar prosperity; and (2) application
of intensive agricultural research. Contends farmers'
income,

$1 707

tirm

time as
as nianv of von realize
time,
many oi you leanze,
there was considerable farm un-

tors

on

t0

is
is

the net income, of farm

1929

operations
that
tnat

return, despite parity prices.

conservation
conservation

rainfall" m'°Ur m0re' ptenMul

Economist, The National Grange

Pointing

water
waier

of the nonfarm
people came
while the farm nnnnlai

come

some maintain1 that bet-

and
ana

15

& Beane

Smith, Barney & Co.

White, Weld & Co.

page

16

Financial Chronicle

The Commercial and

m

Thursday, April 10, 1952

.

.

.

(1504).

Washington
Ahead

In the Economic Pictue

of the News

here

conclave,

to

asked,

in

tion

having the time of his life out in the pri¬
Washington some heavy thinkers have not

in

of getting General Eisenhower

given up the hope, by

any means,
the Democratic ticket.

on

I

this

heard

night in

other

the

plan

a

group not given to idle chatter:
Should the Republicans fail
the

General, there will
for

movement

coming

after

be

a

to nominate
revival of the

Democratic

the

Republicans'

the

convention,

that

rather

ridiculous,

view of the fact that the

man

I

has

defi¬

now

Carlisle

The

Bargeron

General, according to • this group,
explain that he had looked upon him¬
Republican. But in these days and times there are certain
kinds of Republicans and there are certain kinds of Democrats.
No longer do the labels definitely describe a man's political think¬
ing. Now, the General stands for certain principles. Whether you
want to call these principles those of the Republican party or a
particular segment of it, or those of the Democratic party or a par¬
ticular segment of it, is not important.
would

as a

my

principles, ladies and gentlemen of the conven¬

tion," the General purportedly talking, "and you have accepted
them. You have therefore accepted my platform. Come with me,
What is

again, should we let the economic
system penalize and ruin our far¬
mers because they maintain pro¬
duction
of
essential
food
and
is

convention.

are.

make for

calm

deliberation

the delegates but there is not likely to be any

on

the

part of

calm deliberation

anyway.

aversWi

of the Military to economy, as

There

is the

method, for example, followed by the Quarter¬

master Corps in the procurement of army

uniforms. The waste in
this method, according to experts in the department itself, is cost¬
ing the taxpayer roughly between $40 and $75 million a year.

must

we

treat de¬

to

learn

come

in the amount of cloth needed

is

specified. But in considering these bids the able minds of the
QMC ignore the amount of cloth needed. The fact that one manu¬
facturer bidding so much on a uniform requires more cloth than
another manufacturer is not taken

into account.

Some reformers

the

department have been trying for a long time to get the
changed and to have the department follow the method
of big chain clothing merchandisers without
any success.

method

An

enterprising officer, Brig. General R. P. Hollis, command¬
ing the New York denot. decided to take the bit in Ms teeth He

Washington that in carrying out its next directive for

yard for the cloth.
uniform

and

real cost

$35.

will

specify five yards of cloth, making the total
Another manufacturer will bid $17 for the finished
uniform but needs only four yards of cloth which makes the
total
cost $33. Under the method followed
by the QMC the first manu¬

facturer is the low bidder.

Under General Hollis'

procedure the

second manufacturer would be.

The figures I have given are
only
illustration. But I have accurately described

for

the purpose of
the procurement procedure which

is

so

wasteful.

They

rel¬

are

atively correct.

Well, General Hollis' well-meaningness didn't get him
any
Ifegions of merit or any sign of recognition for efficiency. Wash¬
ington was apparently so afraid he might apply his procedure to
one procurement

that the General

before another procurement direction

was

came

ordered

immediately,

out, not to follow

the"

method he had outlined.

military

get over

unquestionably under continual harassment
0om Congress to give small business its share of the
orders, but
ill the matter of clothing it is not a
question of big business versus
the little fellow.

lboked upon as
manufacturer

s

A good

small

98% of the garment manufacturers

businesses.

It

is

a

efficiency against another

instances, the question of

one

question of
one—and

are

small

one

also, in

some

manufacturer ordering more cloth

than he needs and going South with it.

If

downward.

tion

tain

avoid

main¬

can

price

level

depressions, the farm

is

problem

we

stable

rather

a

and

solved.

50%

least

at

that it is foolish

means

solve all of agriculture's
if

Even

maintain

we

normal

prosperity, we will have ups and
downs of some magnitude.
That
presents

farm problem. Assume

a

off

falls

food

for

demand

that

20%, and assume that farm pro¬
maintained

duction

is

ally is.

This

it

as

land

usu¬

loans should be made to
help make adequate farm units for
the best farmers in the area, and
there should be

(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.

(Special to The Financial Chronicle)

BAKERSFIELD, Calif.

—

Rhllo H. Payne has been added to
thf® staff of Davies & Co., 425
the New York and San Francisco




Keith

McCormac is engaging in the

se¬

curities

Montgomery Street, members of 318
Stock 'Exchanges.

—

business from offices at
Oleander Avenue.
He was

formerly with C.
a

number of years.

A.

Botzum

for

some

to help

way

in

Junger has

Samuel H.

become
Inc.,

associated with Strauss Bros.

Broadway, New York City,

42

it

is announced.

Faroll & Co. Will

AM Three Partners
CHICAGO, 111.—Faroll & Com¬

209 South La Salle Street,
of the New York and

pany,

members

Exchanges,

Stock

Mjdwest

will

of
Exchange,

admit Theodore Levy, member

Stock

York

New

the

and Robert H.
partnership as of April
18. Barnett Faroll, general partner
in the firm, on the same date will
Paul

E.

Allison,

King to

become

limited partner.

a

in

established

them

getting

Solicii ContrMons

other occupations.
be

If factories can
brought to overpopulated rural

that is the best solution.

areas,

is

It

devise

impossible

practically
law

a

which would

take

For Bawl St. Journal
humorists
have
their minds
from stocks and bonds to the de¬
Street

Wall

to

force

been

turn

to

asked

care of
velopment of comic material for
don't be¬ this
year's "Bawl" Street Jour¬
lieve in such laws in America.
nal," the annual satire of Wall
The next best we can do is to
Street doings which is published
educate farmers in soil conserva¬
as
a
feature of the Bond Club
tion and give them technical as¬
Field Day.
Publication date this
sistance, at times incentive pay¬
year will be June 6.
Ideas for
ments properly designed to induce
stories, cartoons and advertise¬
farmers to do what they otherwise
ments
lampooning Wall
Street

to

farmers

their land.

would

we

not, may be essential.

should

to

proper

Anyhow,

always
his

conserve

pay

It

that

remembered

be

not

it

Washington will be welcomed

and
up

the farmer

to May 5.

A.

Acheson,

Glen

Bache

of

&

the way so¬

soil

Co., Chairman of the Publications
Committee, and John A. Strayley,
The Grange favors a two
or Hugh W. Long & Co., Inc., editor,
multiple price system so the farm¬ have sent an invitation to Bond
ers can
engage in price discrim¬ Club members—and extended it

ciety deems necessary or desirable.

ination

to

extent.

some ■-

As

an

economist, I believe a two-price

to

include

interested

other

any

members of the financial commu¬

the price of system to take care of surpluses nity—to take part in creating the
of perishable products on a grade 1952 "Bawl Street Journal."

means,

food item will be about 80 cents

where

it

formerly
the

Assume

Do

was

of

you

dollar.
to

get

consumer's

the

think he will get

cents out of the 80

40

a

used

farmer

out

cents

50

dollar.

Do

cents?

think wage rates will fall?
Do you think freight rates will
fall?
Do you think
commission
you

will

rates

Most

fall?

cent reduction will be

the

on

to

while

fact,
can

It's

farmer.

have

prices

the

20-

unusual

costs

the

on

increase

basket

food

farm

of

passed back
not

marketing

consumers'

In

down.

go

increasing marketing costs
push farm prices down.

Some
ment

people think the govern¬

should

reflect

a

set

farm

fair return

farmers

and

on

fair

a

prices

to

investment
return

on

Other members of the Publica¬
basis is
sound
national
A two-price system to tion Committee are William B.
of
The First
Boston
regularly divert a part of the out¬ Chappell
put to a lower use at a lower price Corporation; Wickliffe Shreve, of
use

or

policy.

questionable economics to me Hayden Stone & Co. and Edwin
personally. I especially "object if Herzog, of Lazard Freres & Co.
a
two-price system requires his¬
torical production or marketing
Van Camp Director
bases for the Class I price.
CHICAGO, 111. —F. O. Leffler,
If the American people are not Vice-President of North American
satisfied with the way the free Car Corporation,
and Owen V.
market distributes income, I hope Van Camp, Vice-President of the
they can find some way to satis¬ First Securities Company of Chi¬
factorily redistribute income with¬ cago, were elected to the Board
out
ruining the functioning of of Directors of North American
the price system which is so es¬ Car Corporation at the corpora¬
is

sential

maximum

use
of our tion's annual meeting of share¬
bringing about holders. Their election fills va¬
adjustments to ever changing cancies caused by the retirement

to

resource

of

and to the

conditions. Also interference with

from

the

galls and R. C. Jenkins.

system requires regi¬
ture should
do is
hire a good mentation of producers and proc¬
labor leader, or join up with the essors and the vesting of the right
produce.
Such
interference
labor unions. You probably know to
that John L. Lewis' and William over a period of time might subtly
Green's organizations have actu¬ undermine our American philos¬
ally tried to organize dairy far¬ ophy of individual freedom, in¬
mers.
One thing is certain, a gen¬ centive, and opportunity.
labor.

eral

Some

strike

think what agricul¬

in

as

price

Joins Farwell,
(Special

tacit instructions.

well

as

On the other

processor

any

or

contract

with

a

Johnson

South

merchant and make of

the

is
>

La

111.

a

lawsuit,

■

»

•

<

.

is

also

States

of Allin

K.

In-

Mr. Van
Treasurer of the
Olympic Associa¬

tion.

Dr. Neil Cola Joins
Or vis Bros. Staff

connected

now

Chapman
Salle

New

have announced that Dr.

Chronicle)

Wallace

—

&

Co.,

Cola has

D.

208

members

and

Midwest

York

that firm

become
as

a

associated with

"customers' broker

in its Newark office.

with

Street,

With Union Securities
(Special to

The Financial

i

Chronicle)

James L.
previ¬ Crowley is with Union Securities
Corporation, 75 Pearl Street.
ously with, Baker, Walsh & Co.

farmer who sells for less sub¬ Stock Exchanges.

ject to

Camp
United

Board

of the New York Stock Exchange,
Neil A.

Chapman

to The Financial

CHICAGO,

hand, it would be simpler to pass
a law allowing one farmer to sign Farwell,

price-fixing

the

Orvis Brothers & Co., members

agriculture would

members to follow verbal

a

Samuel H. Junker

farm people be trained

for industrial work and some help

bring quick results. We would be¬
gin by making a union card a

Keith McCormac Opens

the right pur¬

for

used

not

and

small

too

are

pose,

requisite to farming and teach the

Davies Adds to Staff

farms

Where

does

ills internally.

to

is

we

solution of

a

One manufacturer will bid $15 for the finished

words,

the idea that the
depression ills lies in
manipulation of physical produc¬
must

a

clothing procurement, he would add the cost of the cloth to the
garment manufacturer's bid by way of determining that manu¬
facturer's real bid. In other words, say the QMC has
paid $4 a

other

In

them.

tain

to try to

The

to me

seems

fixing prices where they look nice
and curtailing production to main¬

ished uniform.

ibst

of all, it

First

that

start from where we

now

us

This also

When the bids

costs so

average

quit, leaving fewer farm peo¬
to share in the agricultural

the surplus

backwards.

So much for looking

In the procurement of these uniforms the QMC
buys the
cloth and then puts out bids with the garment makers for the fin¬

notified

I suggest they con¬

pressions as monetary phenomena.
We cannot become prosperous by

is pretty generally
known, is deeply ingrained. But occasionally there comes to light
an instance of downright resistance to savings, such a resistance,
ifi fact, as might be shown against the enemy in such heroic epi¬
sodes as the Battle of the Bulge.

in

thinks the an¬

anyone

yes,

template the consequences.
Let

The

If

fiber?

important, I suppose, than the possibility of any
such outcome as this, is that the shadow of Eisenhower as the
Democratic standard bearer will be hovering over the Republican
more

It won't

will

than

least efficient producers

the

during the depression, ple
income and possibly raising farm
depression would have
The government should
been a nightmare of chaos and prices.
revolution. If everyone would ac¬ have a storage program to level
out erratic production, but storage
cept flexible wages and flexible
can
hardly level out the general
profits and maintain production,
depressions would not be so bad. price level. The food merchants
should cooperate in promoting the
It
is high production,
not high
consumer purchase of agricultural
prices that makes our American
products in surplus, and thus elim¬
standard of living.
inating the need for price sup¬
The Question of Future
ports in such cases. The problem
of low income in
Depressions
agriculture is
entirely
a
price
problem.
If we should have a depression not

swer

I: shall lead you to victory."

less

to

or

that

the

and

out, and if you think it is fantastic just re¬
we
are
living in fantastic times.

are

50% as did industry,
would
have had wholesale

starvation

member

"These

cut produc¬

If farmers had

about

we

nitely catalogued himself as a Republican and
is running for the Republican nomination? Not
at all, I was assured. These gentlemen, in fact,
liave the General's acceptance speech before
the Democratic convention practically worked

self

Farm

ber.

draft him.
Isn't

Need of Flexible Price Floors

in 1929 to 58 in 1932.
In a nutshell, I am going to try
production fell from 99 in
1929 to 96 in 1932. The index of to point out some fundamentals
wholesale prices on farm prod¬ in a sensible approach to the farm
We should have flex¬
ucts fell from 147 to 68 while on problem.
nonfarm products the index fell ible price floors in agriculture so
that farmers will produce abun¬
from 138 to only 101.
Some
may
think the farmer dantly and efficiently with assur¬
ance against back-breaking losses.
should have known enough to reg¬
The supports should fall to less
ulate production the way industry
than the long-run normal price
did. Here is something to remem¬
110

from

Estes Kefauver is
but

Wilh Strauss Bros.

Importance of Agriculture

The

By CARLISLE BARGERON

maries

Samuel H. Juflger Is

from page 15

Continued

He

was

HARTFORD, Conn.

—

.Volume 175

Number 5106

..

.

The Commercial and Financial Chronicle

(1505)
<

,

IMU

♦,

ft:

m'

-

'

'

By PAUL EINZIG

Dr. Einzig, after
and exports, as

be solved

in Thirties

the

in

imports,. there

is

of

imports

do

not

ments of the Commonwealth countries
to this latter category.

Mr.

Australia's

to

belong

The panicky decision of

make

drastic

imports from the Sterling Area

reductions

in

largely the out¬

was

of the desire to imitate Britain without regard to the differ¬
between the conditions in the two countries.

come

ences

When in the '30s balance of payments difficulties resulted in

:
a

Menzies

vicious spiral of declining foreign

port cuts, the downward trend
the adoption of bilateral trade

was

trade through unilateral im¬
mitigated to some extent by

pacts of various types.

It

was

a

unsatisfactory solution but it enabled financially weak coun¬
tries to maintain at least part of their foreign trade instead of
having to cut imports to the bare bone after a complete exhaustion
of their foreign exchange reserves. For
instance, when the first
very

exchange

clearing

Switzerland and

agreement

was

concluded

in

1931

Court

The

continue to

The solution applied

during the '30s appears to be inapplicable
in the '50s. In the meantime a strong reaction has set in
against
bilateralism. Under pressure from the United States many coun¬
tries
have pledged
themselves against discriminatory trading
methods. Even though non-discrimination has not yet been fully
extent

of

bilateral

trading has become materially
reduced in recent years.
Any large-scale reversion to bilateral
pacts would be strongly resented in Washington.
The

governments

of

Britain

and

other

countries

with balance of payments difficulties are faced with

a

struggling
very

They could save their dwindling gold reserves by
reverting to bilateral pacts in the place of competitive import
cuts.
In doing so, however, they would be liable to lose their
chance of obtaining financial aid from the United States. If, on
the other hand, they depend on American aid and, for the sake of

securing it, continue to pursue their present policy, they will find
that the sacrifices made for the sake of cutting dowmtheir imports
will be of no avail, because in the absence of bilateral pacts their
export markets will also contract.
The extent to which American insistence
contributed

on

and

a

premature

is likely to

re¬

con¬

tinue to contribute toward the aggravation of Britain's difficulties,
and those of other

countries, seems to be ignored completely in the
Being fully convinced that non-discrimination is
the ideal system for the United States, American authorities and
United

or

months, long before

as

,

"Whatever the rules of estoppel
waiver may be in the case of

ordinary contract of sale, nev¬
ertheless it is clear that a contract
violates

the

laws

States.

would like to see the application of the same system
throughout the world. They seem to ignore the fact that convert¬
ibility of currency and non-discrimination in foreign trade are
luxuries which only very rich countries can afford in prevailing
circumstances. Only countries with excessive gold reserves are in
a position
to disregard the danger of a depletion of their gold
reserves and to spend indiscriminately on imports on the
assump¬
tion that the money spent would return sooner or later in payment
for their exports. The safety margin of the gold reserves of most
countries is highly inadequate during a period of widely fluc¬
tuating balances of payments. These margins are apt to run out

a

States

Court

of

on

Are the United

$3,120,743 damages
made by a lower court to the
Kaiser
Frazer Corporation
against Otis & Co., Cleveland in¬

public policy

as expressed in those
laws is unenforceable.
Any sale to

the public by means of the
pros¬
pectus involved here would have
been

violation of the Securities

a

Act of 1933."

G. H. Adams Confirmed
As SEC Member

forbidden by law

was

The

vestment

bankers,

contract.

The

for

breach

opinion,

Kaiser

and

Otis

Frazer

-

&

Co.,

underv/riting

of

Frazer

unenforceable.

public

offering of the

which

would

"The prospectus, which has been
to have been
misleading,

the

on

the

case

to the United

in

States Supreme Court.
The
a

case

was

the

outgrowth of

contract entered into
between

on

Feb. 3,

Kaiser-Frazer

and Otis

&

Co.

Reconstruc-

Co. and

to offer the stock to the pub¬

lic at

$13 per share. Six days later

suit

had

been

instituted

prospectus

ciated

Commission, Judge Hand
apparent

that

the

summarizing earnings

was an

portant factor in

sale

of the

so,

failure

the

and, that being

make

full

disclosure

and

im¬

the
of

a

regardless

accounting

system

Co.

Dak.—Ray

offices

at

605

a

case was

then sent to the U. S.

its

In

suit

Courts of Appeals by Otis & Co.
In his decision, Judge Hand of

management

the Appeals Court stated:

full

"We

cannot

blind

ourselves

to

the fact that the sale of this stock

Active

Two With F. I. du Pont
(Specfal

SAN

against Otis
held

knowledge

when

it

of

entered

that

all

Otis
the

into the

to

Thk

Financial

Chronicle)

FRANCISCO,

Calif.

are

had

du

facts

now

affiliated with Francis I.

Pont &

Co., 317 Montgomery

Street. Mr. Jewell

under¬

was

previously

with Davies & Co.

Trading Markets Maintained in

Sulphur & Iron Mines, Ltd.

$1.00 par Common Stock

Parent Lake

Mines, Limited

$1.00 par Common Stock

and a return to war-time inconvertibility of sterling with
water-tight exchange control. At present this is not done, be¬

pose,

forthcoming;

if it will not be nearly sufficient to fill the gap the govern¬
ment is reluctant to renounce it by embarking on an economic
even

United

discrimination

States.

that

would

inevitably

antagonize

only hope for a reasonable solution lies in an enlighten¬
of American opinion about the deadlock resulting from its

rigid opposition to bilateralism in prevailing circumstances. The
catastrophic decline of the gold reserve of Britain, France and
other countries should serve as a danger signal to make American




Company

INCORPORATED

*

The
ment

Kobbd &

the

Telephone

barclay 7-2663

Members National Association of Securities Dealers, Inc.

55 Liberty Street,

New York 5, N. Y.

—

Wayne Jewell and Attilio Lertora

& Co.,

writing agreement, and that Otis

Delandore

that Congress is willing to endorse such a costly
If it were definitely understood from Washington that no
further American aid would be forthcoming, it would at least
enable the governments concerned to work out their salvation in
their own way.
In the case of Britain, it would mean a reversion
to bilateralism, a reinforcement of the Sterling Area arrangements
which are at present in danger of ceasing to serve any useful pur¬

of

se¬
was

formerly with Jamieson & Co.

Corporation. short of the truth."

indications

policy

Fourth

curities business. Mr. Brandt

States prepared to support

of the hopes that some American aid will be

H.

in the

engage

policy.

cause

A.

W.

743 to Kaiser-Frazer

The

with

Street, S. E. to

Federal Court.
Judge one, Kaiser-Frazer stated its earn¬
Clancy of this court on ings in such a way as to represent
July 2, 1951 ruled that Otis & Co. that it had made a profit of about
was guilty
of breach of contract $4,000,000 in December, 1947. This
and awarded damages of $3,120,- representation
was
$3,100,000

in

ages

John

N.

Brandt has formed Ray Brandt &

sound

a

was

Secu¬

Ray Brandt Co. Formed
MINOT,

of whether its
was

the

as

Hand asserted:
"For

of

State Banking Department, a po¬
sition he held for about 20
years.

breach of the contract and vio¬

well."

Kaiser-Frazer, a short time
thereafter, entered suit for dam¬

Guardian

Hartford, Conn. In 1930 he

rities Division of the Connecticut

/
V
Kaiser-Frazer
Referring
to
the
automobile
also that the
prospectus filed by Kaiser-Frazer company's estimate of profit out¬
in
the
with the SEC contained erroneous lined
prospectus, Judge
statements.

positions,

time manager of
Credit Corporation

one

appointed Director

therein

lated the Securities Act of 1933

at

was

as a

bank in Ogunhas held various
a

quit, Me. He
banking and security

table

all the facts bearing upon the
corporation's earnings constituted

in

asso¬

with

Putnam & Co., security dealers in

of

Michigan
by
a
stockholder,
and

Adams,
recently

became

young man for

stock

Otis & Co. rejected the tender of
the stock on the ground that a
law

who
Adams

Hartford, Conn., first worked

associates, who to

were

Mr.

statements

erroneous

Finance

Corporation.

Clarence H.

Kaiser-Frazer

is

n

who

change
"It

a

heads the

tion

said:

for the

by

filed with the Securities and Ex¬

Cor¬

sale of 900,000 shares of unissued
common stock at $11.50 per share
to Otis &

the

ated

now

thereof."

Regarding

the
cre¬

Donald,

that prospectus.

breach

fills

vacancy

Harry A. Mc¬

an

"We therefore conclude that the

Kaiser-

a

of

Chairm

integral part of the
contract and the public sale could
only have been made in reliance

Frazer

as

He

necessarily

found

formed

t

c u

member

Commission.

se¬

follow.

Corporation has indicated

it will carry

26,

Exchange

the

but the initial step

was

shares, "was so closely related to contract was unenforceable and
the performance of acts forbidden
that Kaiser-Frazer was not en¬
by law as to be itself illegal," and titled to recover
damages for Otis'
therefore

March

on

Securities

of

to
-

Truman

the

Corporation

Kaiser

President

of Clarence H. Adams of Connec-

and

curities

handed

relating

on
April 7 con¬
nomination, made by

the

derwriters,

down by Judge Augustus N. Hand,
stated that the contract between

the

Senate

firmed

t i

in

-

indefinitely those
countries which, by renouncing bilateralism, have abandoned their
chance of solving their balance of payments problem? There are
no

the

by Kaiser-Frazer, though, in so far
as the particular contract was con¬
cerned, was a sale only to the un¬

of

award

an

matter of months.

a

of

United States and contravenes the

others

in

breach

a

~

an

Appeals hands down unanimous decision hold¬

awk¬

ward dilemma.

turn to non-discrimination has

concerned.

this

use

following language:

closes through

a

April 7, handed down
unanimous
opinion annulling

poration

Weak countries
import from strong countries, and
also from each other, without running the risk of
exhausting their
foreign exchange reserves.

the

acute

countries

not

warranty.

This Judge Hand denied in the

Upsets Judgment Against Otis & Co.

United

Appeals,

1948

achieved

of

the

matter of

a

and therefore is unenforceable. Kaiser-Frazer to
carry case to
U. S. Supreme Court.

between

Hungary it obviated the necessity for the latter
Switzerland, owing to the willingness of that

to

in

could
of

which

U. S. Court of

country to accept payment in Hungarian goods.
thus able

of

reserves

occur

ing contract with Kaiser-Frazer Corp.

to ban imports from

were

gold

17

J

I

,

diate return to discrimination for the sake of better ultimate
pros¬
pects and insisting on the maintenance of the present system
which would inevitably collapse in a few months' time.

solve

imports, either because their balances of pay¬
ments are adversely affected by the British
import cuts or because their governments are
in the habit of looking toward Britain for guid¬
ance in their economic policies.
The govern¬
Einzig

4 V

simultaneous

a

foreign exchange difficulties, because the ex¬
ample is apt to be followed by other countries.
Whenever a major country such as Britain
applies substantial cuts in her imports a
vicious spiral of declining international trade
is apt to set in. Other countries, too, cut their

Dr. Paul

t

.

repetition of the chaos experienced in the
early '30s, it would remove indefinitely the chances of making
any substantial progress toward non-discrimination.
The prac¬
tical choice lies between accepting as inevitable a certain imme¬

a

reductions

the

liable to

are

Should there be

.

corresponding contraction
of British exports.
It is a fact, amply con"firmed by experience during the '30s, that uni¬
lateral

-

materialize.

can

LONDON, Eng.—In British official circles the prospects of
closing the gap in Britain's balance of payments are viewed with
growing concern. For, although the recent measures adopted or
announced by Mr. Butler are expected to produce the desired re¬
duction

*

*

the limited American aid which is at
present under consideration

by bilateral trade agreements.

tendency toward

depletion of

Such crises

Notes,
however, this is not now likely, due to opposition of U. S. to
discriminatory trade agreements. Holds only hope for solution
lies in change in American policy toward bilateralism.
as

(

opinion realize that it would be fatal for these and other coun¬
tries at present to continue to apply the
policy forced upon them
by American insistence on non-discrimination. The cause of non¬
discrimination and free multilateral trading would itself
suffer

if the present policy resulted in a series

calling attention to decline in British imports
the result of restrictions, says problem might

1

A. T. a T. Teletype
NEW YOftK

1-277

18

The Commercial and Financial Chronicle

(1506)

Bank and Insurance Stocks

Our

Reporter

.

.

.

Thursday, April 10, 1952

Governments

on

Plans for the 28th annual Field
=

E. JOHNSON

By II.

Day

of

York

This Week
the year 1951 as
ferent

.

Insurance Stocks

—

J.

Lee,

of W.
,7

operating figures of fire and casualty companies for

The final

companies

announced

Pre

,

The

insurance stocks to

and statements for last year.

*

is that prepared by Geyer &

best of these reports

One of the

Glassmeyer,

Field

Jr.

will

chairmen—H.

,

this time in that it breaks >.
down the sources of premium income.
In a sense the different '
classes of insurance represent different types of business and are
affected by

different conditions.

While automobile

»

portion of premiums for most companies, the other lines such as

workmen's compensation, ocean marine, extended

inland marine,

ing conditions may vary from group to group and from time to

handling,

is

company

This is also

results.

if

is to

one

true, where

business concentrated in

tion of its total

have

a company may

.:

writing only

Attendance

This difference in the type

v

the diverse

In other words those companies

business in

the

automobile

—Walter H.

liability and physical damage under-

>

curities

were

generally the

ones

to report the large under¬

Companies which had

large part of their business concen¬

a

trated in the straight fire lines on the other hand,

Special

;

Most

of

the

larger companies,

differences

The

the "Insurance

Stock

tween the different

In previous

/

the
^

however, is important and this is where

Analyzer" helps to make

weeks

jshow the figures for

the operating results for
been

1951

of

Exchange

—

C.

Allan

Doremus & Co.

companies taken

\

Trophies—Francis
Drexel

D.

Co.

&

Bartow,
'

-1951 BreakdownNet

Acquis.

Exp. In- Adjust.

Agricultural

Ins—

Automobile

Edgerlon Joins I.D.S.

Federal

Net

Profit

Income

Earnings

Ur.earn.

writ'g

Invest.

Before

Taxes

After Taxes

Profit

Prems.

Profit

Income

Taxes

Incurred

$2.48

$1.65

$6.23

$7.88

-$0.83

American Alliance...
Amer.

"

Oper.

Under-

writing

Under-

curr. on

Operating

1950

$6.97

$11.12

—0.02

0.43

0.41

2.79

3.20

—5.02

-0.67

—5.69

3.47

—2.22

0.63

0.22

1.97

2.19

Cl7l8

2.01

3.20

—1.31

Cr0.17

—1.14

3.15

5.80

—3.98

-3.98

—0.99

Ins.(Newark)

Amer.

Re-Insurance

—G.63

2.12

—4.51

American Surety
Camden Fire Ins.—

-12.16'

,2.38

—9.78

2.92

0.28

-2.22

3.22

7.

1.66
1.94

0.33

0.47

0.55

1.75

2.30

0.32

1.98

1.69

0.60

1.59

2.19

3.70

5.89

1.00

-4.89

6.86

Fidel. & Dep. of Md.
5.60
Fireman's Fund Ins. —0.06

1.21

6.81

4.10

10.91

3.01

7.90

8.65

1.07

1.01

3.09

4.10

0.56

3.54

4.11

Firemen's

—1.27

0.85

—0.42

2.84

2.42

0.01

2.41

2.34

—0.99

0.81

—0.18

3.86

3.68

0.85

2.83

3.57

—1.23

1.24

0.01

3.41

3.42

0.52

2.90

6.67

6.38

10.63

9.23

10.12

Federal

Insurance-

General

(Newark)

Reinstir,—_

Glens Falls Ins.—

Hartford
Home

Fire

Ins.

Insurance

Merchants

Fire

1.63

2.12

3.75

,

:
'

1.40

—

—0.12

0.53

0.41

2.75

3.16

0.18

2.98

3.27

As.

0.38

0.57

0.95

2.32

3.27

0.52

2.75

3.02

National Union

Fire

0.54

Amst'dam

Cas.

0.92

1.46

3.31'

As Senior

industry
home

research

office

manage¬

Services, Inc., was announced by
Guy Lemmon, administrative of¬
ficer

of

the

I.

S.

D.

investment

department.

Mr.

graduate

Harvard

of

School, is

Edgerton,

native of New Haven,
He formerly was an ac¬
manager
for
Brown
a

4.77

0.75

4.02

—5.56

3.32

—1.74

CrO.Ol

—1.73

3.80

—0.44

2.52

2.08

2.08

2.38

count

1.36

0.24

1.60

2.02

3.62

1.13

2.49

2.63

Ins.—

13.35

0.97

14.32

10.82

25.14

8.80

16,34

21.74

Brothers, Harriman & Co., and

Sec. Ins. Co. of N.H.

—2.64

1.61

—1.03

2.57

1.54

Cr0.12

1.66

2.98

1.25

0.20

1.45

1.65 *

3.10

0.96

2.14

2.20

River

Pacific

Fire

Westchester

Ins

Fire

v

Join Draper, Sears

COMPARISON & ANALYSIS

(Special

17 N.Y.

to The

Financial

Conn.

Bank Stocks
First Quarter 1952
on

Request

BOSTON,
Spooner- is

Members New York
Members New

Exchange

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArcIay 7-8500
Bell

(L.

Stock

York Cnrb Exchange

Draper,

Mass.

Sears

Herbert

—

connected

now

A.

Teletype—NY 1-1248-49

Gibbs,

Automobile
was

&

Co.,

53

Manager Trading Dept.)

Specialists in Bank Stocks




with

M.

Insurance

Television

Co.

in

Co.

Shares

Chicago

be¬

joining I. D. S.

\

Philip E. Rimel Opens |

State

...

engaging in

ness

more

nor¬

ago.

The out-of-town commercial
banks, which are heavy in sav¬
ings deposits, have been using principally new money in the
pur¬
chase of the higher income eligible obligations,
It is reported
that business loans and
mortgage loans of the type that they are
interested in acquiring are not
readily available. This money is
being put into government securities. Not a few of these banks
raised

that

ported

new

through the sale of stock, and it is

money

substantial

a

been invested in the

amount

of

these

funds

has

re¬

likewise

longer-term Treasury obligations.

Maturity Extension Continues

7

r

On the other hand, the large money center commercial banks
have also been going into the
higher income government secu¬
rities, but the funds which are being used for these purchases, it is

;

reported, have come mainly from the sale of certain short-term
Treasury issues. In other words, switching is supplying the
money
is being used by these institutions
to acquire the higher
income obligations. The
pushing out of maturities has not been
quite as far by the large money center banks as it has been
for

•that

the out-of-town institutions, because it
is evident greater
must be maintained
by the money center banks.

As.

a

result

of

this

liquidity

lengthening of maturities by the deposit

banks, the 2%% due 1957/59
appears to be the leading
issue, with
both the out-of-town and the
large money center institutions in
the market /for this
obligation. The supply has likewise been
limited in this obligation but
many more of these bonds seem to
be finding a way into the market than
has been the case with
other eligible issues that are
being bought. Federal had an im¬
portant position in the 2%s and there have been
reports that the
Central Banks have been
supplying needed bonds in order to keep
the market on an even keel.
7
>
7 'v.;
;

The

Financial

CLEVELAND, Ohio
Janssen has rejoined

a

securities

busi¬

from offices at 122 Chestnut

Lawrence

Cook

(Special

Frans

SAN

the Staff of
B.

&

Co.,

Fidelity

f

banks tak¬

ing

on

limited amounts of these bonds.
that

The partials,

especially the

is'the

1956/59s, the 1958763s, and the*
getting increasing attention from thq

•1960/65s, have also been
laige money center deposit banks. The out-of-town
institutions
been doing minor
buying in the 2%s;due 1960/65, which

have

seems

to

be the

extent of their
participation in this group.
The
September 1967772s have been the favorites of the
smaller com¬
mercial banks and, while it has not
been too easy to pick
up this
obligation, rising prices have brought quite a few of them into
the
market from time to time.

are

buy the recently offered

savings banks

and

again

in there

selling, in order

private

new

trust

taking

on

the

to get funds that

corporate issues.

accounts

re¬

were

State funds

continue

to' take

on

somewhat

larger amounts of the ineligible obligations.
Offerings
obligations are likewise limited, because there are* no
important dealer's positions and many potential sellers have
pulled
away from the market, because of the better trend of
quotations.
of

these

.;by

Quaker Oafs Slock

common stockholders of record

March 13 at rate of

7 each

-...

7

With E. F. Hutton Co.

Chronicle)*
—

Intermediates Finding Favor

Considerable activity is being shown in the
IV2S and 13/4S due
-1955 and 1956, with the
big banks the main buyers of these se¬
curities.
Also the 1956/58s and
1956/59s have been under accu¬
mulation by these same
institutions, with the smaller
/x

seven

sold.

Rejoins L. Cook Co.

Building.

compared with

BANGOR, Pa.—Philip E. Rimel

Street..

to

»

with

Boston Stock Exchanges.

(Special

long

used to

Management

Laird, Bissell & Meeds
120

so

Private pension funds
stricted bonds, after minor

Street, members of the New York
and

side when

a

ican

is

Quotations

restricted

vestment committee of the Amer¬

fore

City

as¬

sistant to the Chairman of the in¬

He

Chronicle)

a

Business

2.18

4.27

the

in

group

investment

ment staff of Investors Diversified

1108

North

the

7

MINNEAPOLIS,
M i n n,—Ap¬
pointment of John W. Edgerton as
a senior analyst for the electronics

—7.74

Y. Fire Ins

not

Analyst

,7 —1.52

New

N.

on

.

$0.91

1951

—0.41

Amer.

because

competition appearing daily from the large money center banks
However, there appears to be considerable difference as to the
origin of the funds that' are being used by these banks in
acquir¬
ing Treasury securities.

•

Publicity—William H. Long, Jr.,

we

7/77'. 77

;

Nix, Riter &

J.

Eustis, Jr., Spencer Trask & Co.

of

some

Below

reported.

the other leading

from the Geyer & Co. report:

Stanley

Horseshoe—Craig Severence, F.

•

.

H.

,,

,

Stock

companies have
some of

—

Eberstadt & Co.

comparisons be¬

companies.

major insurance

Features

Racing—Allen
.

among various concerns,

J.

Co.

*

spot-light,

larger number of eligible trades have
consumated, according to reports, and in these transactions

have

Kruserl, Shearson, Hammill & Co.

of courseware engaged in all

phases of insurance with the exception of life.

the

involved has been greater than was the
This buying, it is reported, is coming mainly
from the out-of-town deposit
institutions, although there is greater

Bacon, Whipple & Co.

generally showed

satisfactory underwriting result.

a

Glen

Clapp, Jr., R.
W. Pressprich & Co.
Tennis—Harold
H. Sherburne,

'

have

the amount of securities

case

Weed, Jr., Union Se¬

Dinner—John

writing losses.

still

Corporation.

'

writing lines

Journal—A.

Street

and

times.Nonetheless,

been

Bawl Street Journal Circulation

large portion of their

a

mal

Long & Co., Inc.

year.

with

Cal-

W.

John

—

Acheson, Chairman, Bache & Co.;
John A. Straley, Editor, Hugh W.

of business handled helps to explain; ?

underwriting results of last

issues

understood, however, that although volume and activity has
picked up moderately from recent low levels, it is still rather

R.

Hudson

laghan, Goldman, Sachs & Co.

particular line or may

a

,

bank-eligible

Buying by Commercial Banks

7777.'
—

Clark, Dodge & Co.

two types of insurance.

one or

watched

Bogert,

committees have been

7 7-'.7 7

Bawl
be

be

small

large por¬

a

He

Lemkau, Morgan Stanley & Co.
Golf—John
W.
Dayton,
Jr.,

the underwriting

understand

should

commercial banks find they have been too short and must
lengthen maturities in order to meet higher operating expenses^
The restricted obligations continue to find homes
with private
pension funds, trust accounts, state funds and savings banks.

R.

Entertainment

time, it is important to know the type of business a particular

line

Co.

are:

and fidelity and surety are also important. As underwrit¬

coverage

this

many

Day

appointed to direct the various
sports and entertainment activ¬
ities at the outing. These commit¬
tees and their respective chairmen

lines constitute the major,

along

Commercial banks, according to
advices, are assuming greater
importance in a more active government market. It should be

Loftus,

Thirteen

,

and straight fire

The

S. Dickson & Co.,
Inc.; Egerton B. Vinson, De Haven
& Townsend, Crouter & Bodine;
and Allen C. DuBois, Wertheim &

J.

This report is particularly useful at

•

Lawrence

political consid¬
in the future action of the money

up

developments

closely.

very

general

by' four

and

be wrapped

Jr., Eastman, Dillon & Co.; Edgar

dividends or assets. Needless to say, it would
days of analyzing convention statements to assemble

writing, capital,

companies.

assisted

be

It is also possible that
important

soon.

could

markets

has

Chairman.

short, this report by Geyer & Co. presents a great deal of
on a comparative basis, so that one can readily see the
relative position of a particular company with respect to under¬
In

information

this information for so many

erations

named

been
E.

short-term

bank rate

Glassmeyer,
Blyth
&

stocks.

better prices for Treasury issues.
being put forward for the better psy¬

are

obligations appears to carry the most weight at
time.
The big question now is whether the
larger offerings
Treasury bills is the beginning of the short-term deficit financ¬
ing. Likewise, many are looking for a lowering of the prime

of

Inc.,

about

of

Edward

Co.,

bringing

this

Coun-

N. Y.

provided in the "Analyzer" on dividends,
asset value per share and diversification of assets be¬
different classes of bonds, preferred stocks and common

is

many reasons

chological attitude toward the government market, it seems as
though the belief that deficit financing will be confined largely
to

t r y
Club,
Scarborough,

Information is also

require many

securities

Although

Sleepy

Hollow

of insurance.

tween the

'Club.

take

the

at

Analyzer,
results for
70 of the principal fire and casualty concerns for 1851, it also
shows the capitalization, net premiums written for 1851, 1946, and
1941, and sources of premium income among the different classes

estimated

of .these

this
year
on
Fri¬
day, 7 June 6,

Co., 63 Wall Street, New York. The "Insurance Stock
as their report
is called, not only covers the earning

A very much improved feeling among operators in the gov¬
market is having a favorable influence
upon quotations
obligations.
Buyers appear to be multiplying, which
means the
competition for a not too greatly enlarged supply of
<

ernment

place

1

,

7

t

e n

outing

■

i 11

w

in
compile comparative records on the operations

This has enabled the various investment firms specializing
-

Co.,

i d

s

the

of

'77

revealed in the convention statements of the difare now available.
•
;
•

by James

Button &

E.

•

By JOHN T. CHIPPENDALE, JR.

New

of

Club

Bond

the

were

to

The

Financial

Chronicle)

•,

t

FRANCISCO, Calif.—John

Knox,

Jr.

has

been

added

to

the staff of E. F, Hutton & Com¬
pany,

1'80 Montgomery StreeT.

■

A group

of underwriters, headed

by Glore, Forgan & Co.

on

7 announced that all of the

shares
mon

of

Quaker

stock

recently

(par

offered

Oats

April

410,121

Co.

com¬

$5), which

were

for

subscription

-

y

one

share for

shares held, have been

•. »

^

■

77 7

,

;

Warrants 7 for 396,472 ,shares
weFe .exercised during the subscription period which expired on
March
31,
and
the
remaining
13,649 shares were purchased and
resold

by the underwriters.

.

yolume 175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1507)
telephone service and to further fered
$9,450,000
Chesapeake
& L. F. Rothschild
improve the service it offers in Ohio Ry. 27/s% serial
equipment Becker & Co.

How to Reduce Taxes
By

ROGER

W.

the States of Illinois and Indiana.

BABSON

Pointing out, in terms of 1928 dollars, our total wealth has
only 12% up to 1948, while population has in¬
creased 23%, Mr. Babson accuses Federal Government of a
policy to keep public in dark of such facts. Says taxes can
be reduced if people give as much attention to
government
squandering as they do to their own personal finances.
15

Gone, too,
for

that

has

new

gone,

the hopes of

are

car

or

many

summer

cation, the redecoration of

a

rooms,

outfit.
you

ting, interested citizens who have
made their wishes known to their

a

While

still

are

mendations to bring about a more
efficient Government.
Hard-hit-^

few

spring

representatives have been able to

bring

about

time

good

let

we

our

our

money

spend

so

recklessly?"
I

in¬

am

clined

be¬

to

lieve

of

most

economic

the

realize

not

do

facts of life;

for, if we did, I feel
certain that more people
would
get out to vote; in the
primaries, as well as in local and
pretty

this country when

How rich is

with

compared
tional

1929?
of

Bureau

The

Na¬

Economic

Re¬

search has reported
1929

of

dollars

1948.

Yet

that in terms
total

our

has increased only
to

wealth

12% from 1928

this

in

period

same

population has increased 23%!
This boils down to the fact that
our

in 1951, a year

in which all kinds
were set, the

of economic records

capita

per

wealth

Government

been to

in

such

size

and

mental

of

power

machine,

commitments

keep

facts.

govern¬

our

formidable

our

both

home

at

and

has

really been going on. Many
people even now subscribe to the
idea that high taxes are good for

Who

gets

whole!
the

of

most

tax

money?
Uncle Sam now takes
81% of all taxes collected in this

This

country.
of

the

local

tax

for

which is less

governments,

than

one-third

these

only 19%
state and

leaves

money

the

of

organizations

all

of

of

the

does

this

Get

money?

a

Report

of

national

employees from 570,2,500,000.

budget

fail

or

has

we

can

dollars.

But

writing

Let

us
speak up by
Senators and Repre¬

our

munity,
have

as

some

recently

Above

people

young

done

stand

all,

for

in

who

and

about

Boston,

help bring
half of the
by
the

us

remaining

will

efficient

be

as

so

as

It

is

our

a

Cash and Due from Banks

Company

TORONTO, Canada—Formation
of a partnership to

conduct

under the

name

land

Company

as

of The Mid¬

at

approxi¬

the

are

what

has

cause

the

more

dollars

and
an

to

four
to do

uses

manpower

job as do private companies.

These

of

long

as

death claim, and
much

me.

mittee

few

a

been

in

samples

going

on

more

and

taxes

from

you

The Hoover

Comrqjssion,

non-partisan

appointed

made

to

for

demand

impartial,

Truman,

but

by

over

com¬

President

300




State and

Obligations

.

1,105,955,367.51

Municipal Securities

•

305,373,187.00

Other Securities

.

.

A

Exchange, with of¬
King Street, West,,

50

Mortgages

62,549,952.18

Loans•••••••••
Accrued Interest Receivable.

ing, London, Ontario. Partners are
Douglas B. Weldon, D. G. Simp¬
son, E. H. Gunn, E. M. Kennedy,

Customers'

J. T. Skelly, C. W. McBride, C. W.
Dearberg, and David B. Weldon.
The

255,452,350.13

.

.

Toronto, and Huron & Erie Build¬

Midland

Limited

$1,473,757,542.72

.

members of the

Toronto Stock

fices

U. S. Government

.

general brokerage busi¬

a

ness

will

derwriting

Securities

continue

and

in

Corpn.
the

municipal
poration securities.

and

2,154,668,682.29
•

10,912,022.96

.

44,826,053.53

Acceptance Liability

Banking Houses

28,424,063.45

Other Assets

4,960,372.10

un¬

distribution

government,

$5,446,879,593^87

of
cor¬

LIABILITIES

Deposits

Illinois Bell Tel.

31/g% Bonds Offered
Halsey,

Stuart & Co. Inc. and
April 9 made a pub¬
offering of a new issue of $25,000.000 principal amount of Illi¬
associates

Bell

Telephone
Co.
first
3%'% bonds, series C,
due April 1, 1984, at 101.525% and

recom¬

Proceeds

tice

for

Foreign Funds Borrowed
Dividend

$4,988,540,256.61

»•••••••

.

831,433.00

.

Payable May 1, 1952.

2,960,000.00

on

lic

mortgage

The Veterans' Administra¬

as

RESOURCES

high.

applied toward repayment of ad¬
vances from American
Telephone
& Telegraph Co., the parent com¬
pany,
which are presently out¬
standing in the amount of $82,100,000. It is an established prac¬

times

STATEMENT OF CONDITION, MARCH 31, 1952

being spent!
fault that our

is announced

The total

from $240 per aver¬
age family, per year in 1928, to
$1,400 today. Here is a sample of
where the money goes: 29 dif¬
ferent
agencies make loans; 28,
handle welfare projects;
16 are
engaged in wild-life preservation;
and'50 agencies compile statistics,
which often disagree with each

pay

OF NEW YORK

CITY

is

Toronto Exch. Member

increased

up

times

OF THE

Gov¬

and

demand.

we

partly
are

Our

good

as

that

money

is

BANK

government

Commission.

ernment

taxes

let

NATIONAL

those who

for

recommended

Hoover

our

will

the

reforms

vote

efficient

CHASE

THE

by working with or¬
ganized groups in our own com¬

has' gone

five

\

sentatives,

It

BANKING^

if

accrued interest.

takes

W.

Equitable

our

mately $70 billion. From another
view the Federal Budget expense

tion

become

stop this waste and reduce

taxes.

our

nois

from $4 billion in 1928 to

other!

has

with

the

vote,

Government

good

from

the

sale will

Other Liabilities

Company

Portjolio

.

29,966,056.81

Expenses.

...

14,992,536.49

.

.

.

.

52,379,819.96

...

.

7,067,035.74

Acceptances Outstanding

be

to obtain
such advances for general corpor¬
ate purposes,

Reserves—Taxes and

Less: In
the

Capital Funds:

>:•

Capital Stock.

.

.

$111,000,000.00

'■

o-'

^

^

'

'

'

,

"

"

.;

<7,400,000 Sharcs-$15 Pat)

Surplus.

...

.

-i

189,000,000.00

."V

V
'

Undivided Profits

.

'

*

'\*rj

64,276,526.74

including extensions,

additions and improvements to its

364,276,526.74

telephone plant, and the company
intends to continue this practice.
Illinois Bell Telephone intends

$5^446^879,593.87

to offer
mon

for

682,454 shares of its com¬
capital stock to shareholders

subscription

1, 1952, at

par,

on or

$100

before July

per

share, and

to apply the proceeds toward re¬
payment of advances from AT&T

then

&

outstanding.

Since World War II Illinois Bell

Telephone has been making large
expenditures for new construction
in opder to meet the demands for

United States Government and other securities carried
to secure

public and

trust

Chronicle)

H.

connected

offering
Hayden, Miller & Co., Union
Pressprich & Commerce Building, members of
Securities Corp.;" the Midwest Stock Exchange.

R.

are:

of

Financial

com¬

to

business, just as we would the
handling of our personal finances,

find

out if you don't know.
Here are
few facts:
In 24 years, the
Government
has
increased
the

000 to almost

group

April 4 publicly of¬ Co.;

members

/^ORLD^DE

remain

we

tax

our

make

we

digest

and

a

number

and

Other

The

CLEVELAND, Ohio—Thomas

their

at

Sam do with

Uncle

Hoover

If

silent

G.

Hayden, Miller

to

Hubbard

847,804.

percentage

had

disposal in 1929.
What

Inc.

(Special

Government will continue to

to what

senses

our

the country as a

it.

or

squander

us

The

abroad, full employment and
standard-of-living propaganda —
all have dulled

Co.

by

standard-gauge railroad
equipment estimated to cost $11,-

Fault

Opiates

The policy of our own Federal
on

Own

Form Midland

Government has
dark

&

secured

actually

was

8% below that of 1928!

the

Stuart
on

Mass.

elections.

national

make

we

our

much

Halsey,
associates

are

Government, at local, state,
levels, is as good as

take

so

Halsey, Stuart Group
Offers Equip. Tr. GIfs.

Joins

certificates

new

national

placent

to

us

and

Governm ent

of

Roger W. Babson

Our

to

"Why do

adopting

less than half of the Commission's

Our

A.

Com¬

mission.

recommendations.

smarting, per¬
haps it is a
ask,

legislation

Co.;

Freeman

second

Commerce

terest.

va¬

or

new

certificates,

The

and

come

&

Inc.;

equip¬ Co.; Gregory &
Son, Inc.; Ira
These expenditures have required ment trust of
1952, maturing semi¬ Haupt &
Co.; Hayden, Miller &
the
obtaining of substantial annually Oct. 15, 1952 to April
15, Co.; The Illinois
Co.;
McMaster
amounts of new money.
At Dec. 1967 at prices to yield from 1.95%
Hutchinson & Co.; Wm. E. Pollock
31, 1951 the company had 2,670,574 to 3.00%.
& Co., Inc.; Weeden &
Co.; Julien
telephones in service.
Issued under the
Philadelphia Collins & Co.; First of Michigan.
The new series C bonds are re¬
Plan, the certificates are being of¬ Corp.; McCormick &
Co.; and
deemable at prices ranging from
fered subject to authorization of
Mullaney, Wells & Co.
104.525% to par and accrued in¬ the
Interstate

increased

March

trust

19

at

deposits and for other purposes

Member Federal Deposit

as

$512,357,113.00

required

Insurance Corporation

or

were pledged
permitted by law.

Chronicle

The Commercial and Financial
20

.

.

Thursday, April 10, 1952

.

(1508)
*

the

When
House

News About Banks
CONSOLIDATIONS

list

NEW

BRANCHES
OFFICERS, ETC.

dividend in each
of its 168 years, although in the
latter part of the panic year 1837
the payment of dividends was for¬
bidden
by
law — an - omission
bank has

Hamma was appointed

Emil C.

Assistant Treasurer of the Chem¬

Bank

ical

of

Co.

Trust

&

New

April 4

tork, it was announced on

by N. Baxter Jackson, Chairman.

graduate of AmerInstitute of Banking,
has
with Chemical Bank for the

Mr. Hamma, a
can

.

»een

•

McNamee,

Assistant

The

National

Vice-President

City

Bank

of

York,

New

of

died

CHASE

THE

was

Mr.

of
Mc-

a m e e

has

age.
N

National

i

s

n

mailed

an

J.

James

McNamee

McNamee

Mr.

in

bank

joining the bank

to

Prior

the

of

Vice-President

was

newspaper

a

correspondent
with
the
Per¬
shing
Expedition
into
Mexico
in
1916.
During World War I
obtained

he

absence

of

leave

a

from the bank to become a news¬

Division.

29th

In

of the

months

three

to

attached

correspondent

paper

the

the

last

he

was

war

assigned to the office of General
March where he helped prepare
As

a

Official Bulletin.
correspondent he

Creel's

George

newspaper

also

the

covered

first

campaign

of Woodrow Wilson for President.
*

■■

Granville

*

S.

Carrel,
of

Assistant
National

The

City Bank of New York, has been
in

charge

of

the

bank's

Advertising and Publicity Departnent,
his
.

J.
member of the staff of

a

the past

department for

appointed

ears, was

Cashier
has

8. John

effective April

Lav/lor,

on

been

April

with

which

New

bank

oldest

June

on

the

an

8.

Mr.

Carrel

National

the

34

Assistant

City

group

employees

have

who

Mr. Gersten

more, are women.

in his address also noted that the

bank, which celebrates its 44th
anniversary
this
month,
began

9,

of the Bank of New

York with the Fifth Avenue Bank

first

BANK

The bank had among its

in 1948.

directors,

THE

OF

founder, Alexander Hamilton, such

existence

five

formation

of

bank

years

the

and

came

into

before

the

United

Total

Cash

S.

and

in

its

New

by

the

From

the

entirety

York.

365,673,655

436,223,214

293,396,770

293,620,853

521,943,464

566,285,259

17,657,158

17,257,021

Undivided profits
*

New

quarters
the

of

on

*

and

expanded

the

of

*

-

East

Industrial

Side
of

of the city of

and the young

East

building

nation.

Side

office.

entirely

was

recon¬

furnishings and

New

air-con-

equipment have been

added.
*

..

UNITED

*

*

CO.

Twenty Year 6% External Loan Gold Bonds, Due January 1,' 1942
Thirty Year 5J/2% External Loan Gold Bonds, Due August 1, 1955
Thirty-Four Year 4%% External Loan Gold Bonds, Due April 15, 1962

resources

Deposits

—

31/52 Dec. 31/51

and

U.

Due November 1,

S.

rity

1955

185,817,940

152,475,356

151,210,466

due from

31,138,521

Govt,

secu-

34,676,625
■

.

holdings

86,345,497

82,697,097

discounts.

48,822,926

49,443,144

Undivided profits—

2,773,431

2,673,990

Loans &

Mortgage Bank of the Kingdom of Denmark

$

186,719,771

banks

Municipal Loan
Bonds,

*

';

*

Due December

Consulate

of

1, 1972

for

the

Loans, in the amounts and in the

aside about $5,700,000 to be applied
cancellation of bonds of the above-

manner

referred to below

(accrued interest

being supplied from other funds).

-

Denmark has on this date published separate notice that there lias been drawn by
$2,500,000 principal amount of Kingdom of Denmark Twenty Year 6% External
Loan Gold Bonds, Due January 1, 1942,
For further information, reference is made
to the separate notice.
'
' "
balance, about $3,200,000, will be applied to the acquisition of bonds of the
other four issues mentioned above, having regard to the amounts outstanding, by pur¬
chase at prices not in excess of the principal amount thereof and accrued interest, or by
The

redemption (not later than in 1953).

Whether

or

not

any

fifteen display windows of Colon¬
ial Trust Co.'s Rockfeller Center
on

Govt,

further similar acquisitions will

occur

must

depend

upon
..

the

at 43th

KINGDOM

OF DENMARK

51,642,836

48,699,486

98,754,368

96,382,535

6,357,722

6,160,104

*

*

*

of

resolutions were passed
an arrangement made

confirm

to

sharehold¬

with the 200 founders'

whereby the latter agreed to

ers

exchange their shares, with their

rights,

special
share

and

for

ordinary

one

tax-free

payment of
£50.
This bank, it is stated, has
now
only one class of shares—
a

ordinary shares.
Bank

Peoples First National
Trust Co. of Pittsburgh,

total

in

resources

&

Pa., with
of one-

excess

Wisconsin Row. & Lf.

half billion

dollars, is offering to
its shareholders of record April 7,

share

additional
shares

Com. & Pfd. Sik. Offered

unsubscribed

Power

offering

to

&

Light

Co.

stock¬

common

three

holders of record March 31 rights
to subscribe for 288.208 additional

3

after

Wisconsin
is

remaining

each

for

Shares

held.

p.m.

on

April 22, will be purchased from
the
bank
by
an
underwriting

common

shares

share

the

on

each

for

at

$17.15

basis

shares

seven

per

.

one

sha!re

held.

Sub¬

of

group

rights, evidenced

000 represented by

warrants,

will

(CST)

April 21.

800,000 shares

$20 par capital stock, and the

The institu¬
tion, whose origin can be traced
back
to
a
banking business
founded in 1863, offers complete
banking facilities and serves over
360,000
customers.
During the
past ten years, resources have in¬
creased from $311,145,000 to $513,028,000.
Current dividends are at
the

sale of

ing

completion of

upon

the

on

the

An item bear¬

stock.

new

issuance of

proposed

the additional shares of stock

ap¬

peared in these columns March 27,
page 1306.

,

*

Federal

*

*

.

of Governors of the

The Board

Reserve
on

ment

Aksel

of

System

an¬

March 27 the appoint¬

nounced

Nielsen, President

of the Title Guaranty Co. of Den¬

Colo.,

as

director of the Den¬

Branch of the Federal Resrve
of Kansas City, for

Dec.

portion

of

the

un¬

Mr. Nielsen suc¬
ceeds Mr. Cecil Puckett, Dean of
the College of Business Adminis¬
31,

1953.

tration, University of Denver, at
Denver, Colo., who was appointed
a

Class

director

C

and

Deputy

exhibit,

distributing

an¬

Through

o r

1 d Recovery

Imports".

publication

of

The

display

the

mono¬

graphs were arranged

as a

gesture

land and to their
nomic progress

significant

eco¬

in recent years. ;"

allotment^ for

new

4.80%

prefered Stock, with a par
value of $100 per share. This of¬
fer also

expires at 3

of

$100,000,

Both

offerings
by

jointly by
Net

proceeds

from

The

*

*

capital of the United

new

States National Bank of Portland,

March

The

27.

plans

for

stock

was

effective

became

stockholders

approval by the
March 4 of the

on

the

of

sale
in

noted

additional,
issue

our

March 13, page 1091.

of

«

George Buchanan Foster, Q.C.,
Canadian

a

Bank

director of The
of

head office Toronto.

senior

member of

Commerce,
Mr. Foster is

the

of

shares,
together with funds to be derived
from a contemplated offering of
first mortgage bonds
by Wisconsin Power

$7,000,000

will be used
and

Light to discharge $3,000,000

in temporary

incurred

bank loans recently
construction

for

the

pur¬

for a part of
construction pro¬

and to
company's

poses,

pay

gram.

Operating
totaled

amounted
after

during 1951
Net

income

$'3,644,516,

to

equal,

preferred dividends, to $1.49

share

per

revenues

$25,644,622.

on

outstanding

the

stock
of the

common

the

at

end

Quarterly dividends of 28c
share, or an aggre¬

common

the

stock

common

legal firm

during 1951.

Earle G. Richards
Earle

G.

Richards, for many
in San Fran¬

prominent

years

cisco

investment

April

1

of

age

in

Los

Mr.

46.

the time of his
ager

circles,Angeles

died
the

at

Richards was,

at
death, Sales Man¬

of the Los Angeles office of
trans¬

Dean Witter & Co. Prior to

ferring
in

his

to

February,

curity

Analyst

Los

Angeles

post

he was Se¬
and Special, As¬

1950,

sistant to the Buying Department
in

the

firm's

investment

Francisco office. He

*

*

the sale

the preferred and common

capital stock

ing been absorbed by the Scottish
Bank of Lumberton, N. C.
*

un¬

headed

groups

Smith, Barney & Co.
W. Baird & Co., Inc.

Robert

and

being

are

derwritten

placed in volun¬

was

April

p.m. on

21-

gate of $1.12 per share, were paid

*

a

cumu¬

lative

tary- liquidation on March 3, hav¬

*

goodwill to the people of Ire¬

15,000 shares of

on

has been elected
of

limit but subject to

The First National Bank of Sal¬

Ore., increased from $12,000,000 to

Colonial Trust is

at

per

$14,000,000,

the

31, the right to subscribe,
$101.50
per
share,
without

year.

isbury, N. C., with

of record

March

Chairman of the Federal Reserve

*

iey

also is offering to

preferred shareholders,

Bank of Kansas

City.

on

The company

ending

term

conjunction

with

by subscription
expire at 3 p.m.

the bank will amount to $16,000,-

Street, New York. Arthur
S.
Kleeman, President of the
banking house, announces that, in

and




58,992,983

12th

the

on

announced that the

is

it

$

57,925,640

profits—

held

East,

March,

necessary

31/52 Dec. 31/51

207,532,854

holdings

.

MINISTRY OF FINANCE OF THE

CO.,

secu¬

Avenue of the Americas

other in its series of international

of Denmark's dollar resources in the future.

Copenhagen, April 4,4952

sponsor

and

monographs, 1' V/
extent

dle
TRUST

PA.

210,977,148

banks

Ire-

leading Irish ex¬
transportation
facilities currently on view in the

office
iot

of

exhibit of

an

port products

described

British Bank of Iran and the Mid¬

*

240,987,196 237.333,922
—

general

meeting of the shareholders of the

1,170,649

*

General

land in New York is the

Sinking Fund External Gold Bonds Series IX, of 1927.

is hereby given that Denmark has set
calendar year 1952 to the retirement and

*

extraordinary

an

44,398,733

from

and due

*

The

Notice

#

*

At

56,498,702

*

resources

Deposits

S.

was

1,204,822

$

U.

London

of

Hargeisa, Somaliland
Protectorate, on March 26.

44,236,083

Mar.

Cash

Ltd.

India

opened -at

50,309,096

profits—

(Kongeriget Danmarks Hypotekbank)

Forty-Five Year 5%

38,152,077

*

Total

*

secu¬

discounts.

expired

$

-

Total

Cash

Fund Gold

132,496,870

33,728,972

holdings
&

Bank

OF

NEW YORK

'

Consolidated

rity
Loans

Undivided

ver

TRUST

STATES

Mar.

External Sinking

125,917,804
from

due

Govt,

S.

ver,

Kingdom of Denmark

Danish

U.

The

structed inside and outside.

interior

Thirty-Year 5%%

and

141,275,573

mainted

A.

vditioning
Notice to the Holders of:

Co. of Hart¬

Insurance

*

of

$

$

134,713,805

Com¬

opened

were

April 2 at 126 Delancey Street.

Samuel

former

commercial growth

Corp., Do¬
Cable Co.,

&

Rope

A branch of the National Bank

31/52 Dec. 31/51

office

Braunstein, Assistant
outset, the bank was instrumental,
Vice-President in charge, said the
in the movement of goods in in¬
bank's
quarters have been en¬
ternational trade,
and in many
larged three times the size of the
other ways it participated in the

New York

Travelers

TRUST

&

quarterly rate of 50 cents per
share which
is expected to
be

banking

Bank

of New York

merce

of

t

holdings—

the

ernment of the United States was

extended

due

Loans & discounts

The first loan ob¬
tained by the newly formed Gov¬

'

Govt, secu¬

rity

by

/v

$

1,148/526,545 1,253,199,083

from banks—
U.

fifteen years.

Bank

Wire

ford, Conn., Sangamo Co. Ltd. and
The Canada and Dominion Sugar

surplus $20,000,000.

resources__l,260,"'315,376 1,361,357,315

Deposits

States

predates

resources

Deposits

of

Dec. 31/51

$

Isaac Roose¬
Gracie,
James
Low and John

The

Vanderbilt.

CO.,

YORK

Mar. 31/52

famous personages as

velt,
Archibald
Lenox, Nicholas

MANHATTAN

NEVV

addition to its

in

of

number

a

headed jointly by The First ject to the subscription rights of
common
stockholders, employees
operations in 1908 with a staff of Boston Corp.; Merrill Lynch,
are
being offered the right to
ten and now employs more than Pierce, Fenner & Beane and Paine,
Fol¬ subscribe for the new common
1,600 in its 26 offices in Greater Webber, Jackson & Curtis.
stock
at
the
same
price/- The
New York.
lowing the current sale, capital of

part of its history.
present long title dates from

merger

the

of

cluding St. Lawrence

their long association with

or

greater

The

on

of the
director
companies, in¬

council

legislative

Province of Quebec and a

YORK

-

Total

Club, held

served the bank for twenty years

1784, and which it has borne for
the

OF NEW

National

Aster, New York,

greeted

retired

its

opened

business

for

doors

title

under

name

York's

shorter

next oldest bank in New York

Vice-President

olaced

the

is

The

29.

Governmentr

V-V-'.''

*

were

April 8 to be voted at

April

*

BANK

Mar.

rity

Public

14,165,284

the, rights to purchase at $40 per share
bank.
Forty among the member¬ an aggregate of 200,000 shares of
ship, which comprises active and capital stock at the rate of one

official meeting of stockholders

an

on

Assistant

Proxies

1.

May

on

'

*

Loans

*

of 242
members and congratulated them

of New York,

to The Bank

the

of

ident,

of the bank's

change

a

effective

He

#

^

April 3, E. Chester Gersten, Pres¬

have been asked to

New York

name

partment

Madison

and

Street.

Bank's "Twenty Plus"

Bank

the

52,075,256

the

Co.

inaugural reception and

an

at the Hotel

on

de-

made

of

46,351,638
14,185,284

NATIONAL

CO.

Undivided

of
York and Fifth Avenue Bank

approve

and

g

Street,
73d

at

dinner

::;

*

*

Stockholders

of

Avenue

At

61,182,984

*"

STERLING

the

Fifth Ave¬
Street; Madison Ave¬

63d

at

nue

1,105,955, 368 1,183,476,912
2,161,951,615

New

I.

uptown offices:

*

profits

discounts

&

Capital and surplus

> f«

Hannen, Watt, Leggat &

of Foster,

minion

banks

addition to its main
Street, there are

In

at 44th

nue

5,149,631,444

64,276, 527

Undivided

53,938,179

$36,426,000 and deposits of $391,-

three

Loans & discounts2,154,668, 682

55,929,856

——

PHILADELPHIA,

secu¬

holdings

rity

head

since 1917.

1936.

Govt,

Loans

62,799,704

secu¬

rity holdings

Cash

banks—1,473,757, 543 1,527,019,824

from

adver-

publicity

was

4,988,540,

Govt,

S.

52,369,310

office at 48 Wall

Dec. 31,'51

257

U.

from

due

FIDELITY-PHILADELPHIA

31,

due

and

U. S.

City

as

its

t i

YORK

31,' 52

,

;

bank's state¬
capital
funds of

$

ated with The

Bank

NEW

OF

Mar.

associ¬

been

of

NATIONAL

CITY

John

Traphagen;

showed

818,000.

Cash

He

C.

March

ment

THE

OF

follow¬

the

up

$

242,073,035

194,537,887 207,564,525

and

banks

Chairman of the Board

John

On

Financial

BANK

made

was

year.

Downey is Vice-Chairman, and
C. Simmons, Jr., is President.

Association.

Public Relations

Deposits

Hos¬

years

57

the

of

director

a

A.

Total resources—5,446,879, 594 5,607,182,845

the Manhattan

pital.

Lawlor is a
the New York
Advertisers
and
a

former President of

suddenly on April 3 of a cerebral
hemorrhage at
General

is

Mr.

Spaatz.

Carl

ing

under General

Force,

the Air

in

which

in Europe as a Colonel

four years

former

«

Jii

*

J.

the

versity of Pennsylvania in 1929.
During World War II, he served

Financial

...ast five years.

James

graduation from
Wharton School of the Uni¬
his

since

Bank

paid

CO.,

i

Colby of Montreal, is a member of

232,386,601

resources——

The

depository for gold currency.

&

31/52 Dec. 31/51
$

Total

Cash

special

to act as the

banks

York

CAPITALIZATIONS

Mar.

Deposits

When gold
payments were suspended in 1865,
the bank was appointed by New

Bankers

and

REVISED

number

the bank's pres¬

in

HARRIMAN

NEW YORK

clearing symbol.

ent

NEW

members—a

of

retained

still

'

BROTHERS

BROWN

1 on

of New York was No.

Bank

the

Clearing

York

New

established in 1853, the

was

i

was

San

employed

June, 1928 by William Cavalier &
gons

gan
...

Francisco,

which firm

...

0

consolidated with Dean Witter &
Co. in 1940.

.

.

.

<j

Volume 175

Number 5106

The Commercial and Financial Chronicle

These

That's the

Way It Is

/expect.
ment

working capital position has become less *
They need earnings sufficient to induce
investment and to maintain their financial strength, both for current borrowing and for the leaner times v
that will come. In the long run
they will suffer if
they accept now a burden of labor costs which; :
even
if bearable while capacity operations last,
would be intolerable when times
change, demand

-

„

.

.

serve authorities are supposed to
exercise the conventional central

,

and

make

to

A

related

of

,

<•

No borrower, i n c 1 u d in g the

rowers

which kets

™asy'money

Socialist

in the same money

*

■

mar-

•

The only objective standards of
"■M®

under-

F. H. Kingsbury,

rates known to man, and in the
science

of

economics,

those

are

Totalitarianism

determined in free markets. Every

With all these lessons available

other Price or interest rate is the
consequence of dictatorship which
T?s*s
_?5iie!i*

Trend

us,

Toward

we

would prove ourselves

to be obtuse indeed if

to

we were

"But when conditions change costs and
prices will be too high for the market, and trade and
employment will fall off. Thus the swings both
ways will be accentuated."

universal acceptability, and a centhe control of the Executive, and tral banking system free of Exfor a Federal Monetary Author- ecutive influence, that, aside from
ity, would take us if written into the power of the ballot, a people

to

to be

us

ful.

director

of

director in

Yet, it is in the direction of est

to demand redemption of paper
proposals for fiscal and monetary money and deposits in a metal of
integration

or

that

the

various

that
a

corporation.

are

serve

possible to bar politics, this
general analysis would make more of an impression
upon the powers that be.

preme

System should each be
in its

Joins Prescott Staff

own

su-

:

Sasser is

H.

Bank
are

the

instrumental-

necessary

sphere. Neither ities of free

Financial Chronicle)

CLEVELAND, Ohio

able to control their govern- Prescott

The Treasury and Federal Re-

the case, and if it were

&

—

William

now

affiliated with

Co.,

National

York

New

Midwest

and

Exchanges.

men.

Continued from page 11

The

A Federal Monetaiy

Authority—
Open Dooi to Dictatorship

«•

New York Trust

dence of the Federal Reserve Sys¬
under the domination tem^
of. the
Government financing, in the
Treasury,
the System's
policies were controlled by the final analysis, should be looked
fiscal interests of the government upon as an intrusion into, and a
rather than by those of sound disturbing factor in, the fields of

World War I, our Federal Reserve
was

A,

"

r.

reached its highest point between
1914 and

must

it

banking

an

1920. With the restoration of the government credit a higher rating
independence of the Federal Re¬ than it would otherwise have in
serve System
in 1920, it became the open money markets to which
necessary to force a contraction of non-government
borrowers and
credit in order to save the re¬ lenders must go. It is the function
and
the
monetary
and
banking structure of the country.
serves

A result

commercial banks

all

of

to

give

credit rating

borrowers the exact

The

the business contrac¬ to which they are entitled; and it
liquidation of 1920-1921. is the function of these banks and
validity of the principles of the central banking authorities

by Kisch and Elkin was
recognized and endorsed by 69

monetary

who, when
Title II of the Banking Act of 1935
was under debate, said: "The les¬
sons of central banking teach us
that the farther

cially high value by a central
banking system is to assume that
is

it

central banking

a

function

the

of

central

a

system is removed from political banking system to inflate the
domination, the better it is for the rency.
With

country."
Federal Reserve

Independent
-7

Political

Influence

"All
rect

in

talities of those governments.

cor¬

Federal

the

The

and lessons should
Reserve System should seek to in¬ be understood. They all emphasize
crease, rather than destroy, its in¬
dependence of political influence.

commercial

by Kisch and Elkin.
New Zealand, whose central bank

should

assure,

had been made

nature.

not

in July, 1950, she freed her central
bank from direct Treasury con¬

from government financing rather
it

trol.

closely to the

more

fiscal needs of the Government."2
On March

V

defense

a

the

domination

of

the

on

indepen-

Banking and Cut'

(Feb—Apr., 1935A,

p. 771.




of

brought

Bank

her

under

Treasury

Now she is seeking

to free that bank from subordina¬

rUV'M0?***of Re^ffntatives,

S337

Commonwealth

Department.

similar state¬

^ eanktng
Act of 1935, Hearings Bethe Committee

fore

1945, Australia

her

10, 1952, 63 monetary

economists issued
ment in

In

on

H. R.

tion to the

STEPHEN C. CLARK
The Clark Estates, Inc.

Treasury.

Economists'

National

$205,376,336.74
214,482,561.45

Obligations....

1,800,000.00

Vice President
American Brake Shoe Company

Other Bonds and Securities

21,970,404.31

RALPH S. DAMON

President
Trans World Airlines, Inc.

Loans and Discounts

FRANCIS B. DAVIS, Jr.
New York

Customers'

326,661,402.88

Liability for^Acceptances

4,304,591.01

WILLIAM HALE HARKNESS

Interest Receivable and Other Assets....

New York

3,235,547.89

.-

HORACE HAVEMEYER, Jr.
President
The National Sugar Refining Co.

$777,830,844.28

B. BREWSTER JENNINGS

LIABILITIES

J. SPENCER LOVE
Chairman of the Board
Burlington Mills Corporation

Capital.,

ADRIAN M. MASSIE

$15,000,000.00

.

Executive Vice President

Surplus

CHARLES S. McVEIGH
Morris & McVeigh

45,000,000.00

.

Undivided Profits..*....

CHARLES J. NOURSE

10,845,624.59

$

70,845,624.59

Winthrop, Stimson, Putnam
& Roberts

General Reserve,

RICHARD K. PAYNTER, Jr.
Financial Vice President
New York Life

Dividend

1,328,578.80

Payable April 1, 1952...

600,000.00

Insurance Company

Acceptances

SETON PORTER

Chairman of the Board, National
Distillers Products Corporation
ROBERT C. REAM
Chairman of the Board
.

American Re-Insurance Co.

4,47 5,527.11

Accrued Taxes and Other Liabilities......

Deposits

•

MORRIS SAYRE
Vice Chairman of the Board
Corn Products Refining Co.

CHARLES J. STEWART
President
WALTER N. STILLMAN

4 A
»

•

•

•

•

5,997,089.61

694,584,024.17
$777,830,844.28

United States Government obligations carried at $50,107,319.45 in the above state¬
ment are

and other

pledged

United States Government deposits of $42,373,793.63
deposits and for other purposes required by law.

to secure

public and

trust

VANDERBILT WEBB

Committee

of
on

Monetary Policy, One Madison Avenue,
New York 10, N. Y.

.

Stock of Federal Reserve Bank

WILLIAM F. CUTLER

Patterson, Belknap tc Webb
the

/

,-

Cash and Due from Banks

United States Government

Stillman, Maynard & Co.

3 Statement available at the office
.

39TH STREET

ASSETS

President, National Distillers
Products Corporation

tool of the gov¬

They ernment in
1939, learned the old
impair, its lesson by harsh experience, and,

liquidity. And they should free it
than link

a

March 31, 195?

Root, Ballantine, Harlan,
Bushby & Palmer
JOHN E. BIERWIRTH

pertinence of the contentions

advanced

They should increase, not reduce,
its

AND

President

of

consequences

the

AVENUE

Socony-Vacuum Oil Co., Inc.

adoption

banks have been made instrumen¬

designed to

measures

weaknesses

general

cur¬

systems of governmentally - man¬
aged economies in Europe and
elsewhere in recent years, central

Should Be

of

the

SEVENTH

ARTHUR A. BALLANTINE

give government borrowers ex¬

actly the same type of credit rat¬
ing. To assume that government
credit should be given an artifi¬

economists

•

CONDENSED STATEMENT OF CONDITION

GRAHAM H. ANTHONY
Chairman of the Board
Colt's Manufacturing Company

was

to

MADISON AVENUE AND 40TH STREET

DIRECTORS
MALCOLM P. ALDRICH
New York

tion and

stated

•

STREET

system

times in which
should go into the

and

5 2ND

properly,

functions
many

exhaustion open money markets to combat
of bank reserves with eight of the the effects of government financ¬
Reserve banks forced to pay tax ing.
It is not the function of a
penalties for deficient reserves in central banking system to give
1921, and

MADISON AVENUE AND

And if a well-

commercial banking, and the re¬ private finance.
sult was a gorging of the banks ordered central
with government bonds, a credit performs its
expansion until the price level there will be

100 BROADWAY
TEN ROCKEFELLER PLAZA

City

Building, members of the

-*

•

System

A

number of corpora¬

(Special to The

coordination under

law.

excellent exposition of

an

Frederick H. Kingsbury, Jr. as a

rates in free markets, freedom

Totalitarianism

seems

Jr.

The Lock Joint Pipe Company
Has announced the election pi

tive, evaluations—upon the will of
plunge. ourselves into the quick¬
the dictator
and his ability to tions, Mr. Kingsbury is a partner
sand
of
Totalitarianism
from
of the private banking firm of
which we should expect the ex- make
fa
trication to be difficult and painlt 1S chiefly by means of mter- Brown Brothers, Harriman & Co.

de¬

new

the

Nov. 7,

on

course

takings
s

proposed wage in¬
granted to steel workers, other unions
certain

ann0^

change in its

a

endin^ofSti°eWerra

"that if the

are

re-

and, rebuilding; begin... New. Zea- banking controls in the interest of
land and Australia provide illus-. the general: well-being of the: natrations. .Others ;cart\be"expected, tion.
^ ;
; ;

to

industries

government, the

a

"Through increased costs, prices and incomes, in¬
flationary pressure will be renewed," the bank

This

/t(

ity of such

1951,

explains.

;

should'expect to conform to the
rates which prevail in -free markets over which the Federal Re-

embrace, the. United States Treasury, can prop*?
.full. employment erly claim that heorit is entitled
dogmas under the. Socialist gov- to favors not available to all bor-

mands.

?.

:or

easy money and

New York.

are

Socialism

•

,

less intense, due
schedules, slackness in
consumer
durable goods and lessened inventory
buying, and supply is more abundant due to in¬
creased production."—The National City Bank of

in other

to

of .England, .made, to,

to modification of defense

creases

dedicated

Kingsbury Director

enters the,
borrow, it

other form pf Statism, with
central banking an 'instrumental-

to follow in due course; The .Bank,

subsides and operations fall off.
"The demand for steel is already

The bank adds

should should dictate to the other.- But

one

versal. and. attempts at extrication

liquid:

.

what

a

some

Their

•Vi'

eases are

After

country has been when, the Treasury
injured sufficiently by a govern- money markets
to

"The steel companies are
engaged in vast expansion, programs, encouraged by the Government.

21

(1509)

Member Federal Deposit Insurance Corporation

Stock

The Commercial and Financial Chronicle

(1510)

22

$96 Million W. Va. Turnpike Bonds Marketed
The offering on April 7 of $96,-

By WILLIAM J. McKAY

dollar ex¬

The rise in Canadian

change to a premium, as noted in
this column last week, has con¬

visionary

000,000

mining operations

as

they actually

exist today. In contrast

to present

activity, production 50 years ago
was
the
Canadian dollar attained
a
concentrated, to the extent'
level
of
$1.0215
on
Thursday, of about two-thirds, in the precious
April 3, the highest
quotation metals and coal. Geographically it
since
1934,
when
the
United was concentrated to a like extent'
the
Western
Provinces
and:
States abandoned the gold stand¬ in

and

tinued almost without let-up,

slightly

ard. It has since dropped
and

on

April

8

quoted

was

at

$1.0188. The price rise is attributed
in large degree to a continuance of
the heavy buying of Canadian oil,
metals and
other securities by

for

value

of

production in
and nickel to¬

mining

and copper

1900,

the

half

nearly

of such buying, prices of
ad¬

gravel. Quebec's contribution was

investors.

As

securities

Canadian
vanced

and British Columbia areas alone

gether were valued at less than
clay products and such structural
materials
as
cement, sand -and

American
quence

Territories/Gold from the Yukon

accounted

markedly,

conse¬

a

have

issues

some

having doubled or even tripled in
price during the last year.
It is estimated, for example, that
of

the

value

the

Toronto

all

stocks

listed

on

State

through West Virginia is most
Virginia difficult. The topography within

of

option basis for

an

on

limited period of

remembered

and

West
bonds was = the State is so rugged that even
quickly oversubscribed and the with highway appropriations cor¬
account closed, it was announced responding in amounts per capita
the following day.
The bonds, due to those of other states, a modern
Dec.
1, 1989, were sold to in-' complete state highway system
vestors by a nation-wide banking» has been impossible of attainment.
Principal underwriters include:
group of 188 underwriters headed '
by -Bear,: Stearns
& Co., New' Eastman, Dillon & Co.; A. C. AlYork
lyn
& Company, Inc.; Bache &
City.
The offering price
Blair, Rollins & Co. Inc.;
was
99 and accrued interest,' to Co.;
yield 3.80%. The bonds are pay¬ Byrne & Phelps, Inc.; Hirsch &
able solely from revenues of the5 Co.; Ladenburg Thalmann & Co.;
John Nuveen & Co.; Francis I. du
Turnpike System.

Canadian 3%% turnpike

of

picture

a

the cotton
a

time.

Thus armed,

3%% revenue obligations quickly disposed of
by syndicate headed by Bear, Stearns & Co.

.

Thursday, April 10, 1952

.

.

he carried out the
second part of his idea.
He had

New issue of

Canadian Securities

.

revenue

that

one

of

the

na¬

leading manufacturers had
been using rag and paper fibres

tion's

as

base for their product.

a

But

the war years people in
this country had not collected the
rags necessary for the manufac¬
ture of the type of paper they
needed, hence this concern had
been forced to import substitutes
during

at

a

high price.

very

Now here is

a

part of the story

believe may be of interest
all who are interested in sell¬

that I
to

ing securities, or for that matter
anything else. He told me that he
had always heard that the people
Regular
redemption
of
the Pont & Co.; First Securities Co.;
Forgan
& Co.; Hayden, up north sort of believed that they
bonds
may
be made at prices* Glore,
Stone
&
Co.;
Hornblower
& knew their business pretty well
ranging downward from 105% to
and he decided that he wouldn't
par and sinking fund redemptions* Weeks; Peltason, Tenenbaum Co.;
Wm. E. Pollock & Co. Inc.; Paine, try to go in and tell this company
run from 103% to par.
Instead, he
Webber, Jackson & Curtis; Yar- what it should do.

Proceeds from the sale of these4,
just ,5% of the total, and that of
nall & Co.; Equitable Securities
the
Maritime
Provinces
almost bonds will be used to cover con-!
Corporation; Gregory & Son, Inc.;
struction and other costs of the
equalled that of Ontario.
Bacon, Stevenson & Co.; Paul H.
Turnpike, which will extend from
"At the half-century mark, gold
Davis & Co.; Hallgarten & Co.; Ira
Charleston, W. Va. on the north,
continues to retain its priority in
Haupt & Co.; Stroud & Co. Inc.;
via Beckley, to a junction with,
its contribution to dollar value of
Dreyfus & Co.; Stifel, Nicolaus &

went out and

shirt,

bought a plain blue
then
after
he
had

and

dressed himself like

a

real cotton

farmer, he called at the office of

this company in New York. In a
plain newspaper he had wrapped
mineral production, but the scope
Co. Inc.;
of
the
cotton he
F. W. Craigie & Co.; his samples
near Princeton, close to the south-*,
of mining activity and output is
Dempsey-Tegeler & Co.; Domi- wished to offer to them.
ern
border of the State, a total
nick & Dominick; Ernst & Co.; W.
course,
the lower priced stocks, now
so
well
diversified
that,
There
were
about
20
others
distance of about 88 miles.
have made the most spectacular despite its leading position, it con¬
E. Hutton & Co.; Stern Brothers waiting to see the various execu¬

Stock

Exchange has
increased
more
than
$2 billion
from the level of June, 1951. Of

gains.

v*:;.;-'

>

Another evidence

of the inten¬

sified American interest in Cana¬
dian

securities is

State

tributes only 13% to the total. On
a

regional basis Ontario, responsi¬

ble for

half the

over

total in the

the

application late 'thirties, and the major pro¬
and
approval for listing of 12 ducer since early in the century,
Canadian issues, totaling almost 35 now
supplies just over a third, as
million shares, on the New York other
regions, chiefly Quebec and
Curb Exchange in 1951. Indications the
Prairies, forge ahead. At no
are

that the pace of activity estab¬

lished last year will continue dur¬

ing the present year. The excep¬
tionally heavy trading on the Curb
Exchange last week was due to

activity in Canadian shares.
Naturally, the largest segment
of

Canadian

securities

that

are

time in the history of the industry

This

But other categories of stocks are
also

attracting
wider
interest.
Among these are Canadian mining
shares, which, because of the ex¬
pansion of the mining industry,
have
been
attracting
attention
from investors in both the United

States and Canada.
The

Canadian

"
of

Com¬

in its April "Monthly Let¬
ter," reviews the rapid growth in
Canada's mineral output and ex¬
ploration activities. According to
the "Monthly Letter":
the

beginning of the cen¬
tury mining operators—even the
most sanguine — probably would
have dismissed as extravagant and

CANADIAN BONDS

Municipal

The

most

notable

coming

the

southward

the

remove

stacle

mountainous

to

central

industrial

electric

power

greatest

the

free

areas.

has

idea of how to use it,
a quarter

an

that will make his firm
million

a

wants

to

smiled

dollars;
him

see

and

back

who

and
The

now."

came

in

a

girl
few

moments and he went in.

Securities Salesman's Corner

showed the

; He

buyer how the

cotton could be used, how it

could
much cheaper than the
rags and paper fibre they were
then using. Several chemists were
brought in to the office. They lis¬
be bought

By JOHN DUTTON
n

Hydro¬

Good Ideas Are Priceless"

tened

remedied this

and

impressed.

were

He

In every

sent collect he would sup¬

a

At the age of 29, E. B. Malone, tained. With this money he ship¬
physical volume of mining
output in Canada is estimated by who is today the head of one of ped his people back to this coun¬
the Canadian Bank of Commerce the south's largest mattress manu¬ try. When he arrived in his for¬
mer home
in Georgia, where he
to have increased by over
61% facturing concerns, was not only
since
1945, and by about 22% broke, but he had lost what in had started his business career, he
since the wartime high in 1941.
those days amounted to a sizable had only a few thousand dollars

fortune.
Miami

As I

sat in his office

in

few weeks ago, and lis¬
tened to this story, I could not re¬
a

national income, it is pointed out,
has aided in the increased volume frain from asking his permission
retell here the events,
that
of Canadian manufacturing which to
from

more

and

lower

cost

mineral output.

Joins

It

to The

a

Financial

111

—

now.

his

Chronicle)

all

because

from

course

.

t

Charles

connected

was

once

of

more.

One

L.

with

triumphant

o

within

the

short

as

he

was

sitting

in his small office trying to figure

again,

to get his business go¬
he told me that he

started to tear

&

Company,

Salle

Street.

He

financial

a common

defeat

months' time.

\ As

;■

pulled

young man, Mr. Malone
accumulated a considerable
a

tal in land and equipment. He

sent

several hundred

laborers to his
property from the United States.
MINNEAPOLIS, Minn. — All&n
He began to cut and ship timber.
L. Apter has been added to the
All was going well when some¬
staff
of Jamieson
&• Company,
thing happened about which no
The

Financial

Chronicle)

First National-Soo Line

Building,

Two Wall Street

members of the New York

Exchange.

Stock

He Said to

"I

njiake' it

Now Frank Cochran
ALLENHURST,
of

had ever told him.

thought I was going to
go just fine but 5I had
overlooked one thing. No one had
ipe,

ny 1-1045

name

one

the

Corp.

ever

told

me

J.

—

Corporation, 113 Main Street, has

about

West Indies

hurricanes. Within the short space
a few hours my fine block of

The of
Morgan-Cochran
N.

timber

was

flat

on

the

ground.

glass.

out

He

fore the

Right

wanted—just

few

to

the

were

was

made

days later he
firm's plant.
and

soon

the

consummated. The Geor¬

gia farmer boy was now back on
One good idea, and the

his feet.

courage and

it

will

power

to 'follow

through, did the trick.

,

One

ber.

thing to

one more

remem¬

Not

only do you have to
out, but remember—don't
tell anyone about it after it comes
to you."
work it

venture.

he

had

good idea—and

The next day

Formed in Kansas

City

KANSAS CITY,
Investment

Mo.—The Soden
Company has been

formed with offices at 1207 Grand

Avenue
and

to

act

as

distributors

underwriters
of

municipal
specializing in Missouri,
Kansas,
Oklahoma
and
New

bonds

Mexico
Peter

issues.

Officers

are

J.

Soden, President and Treas¬

and Robert W. Soden, Viceand Secretary. Earl K.
Duffy is associated with the firm

urer,

President

was

World War.

ruined. Some of my workers were" for this

were

one

what

Soden Investment Co.

he left for Wash¬
as Missouri representative.
right after the first
had
a
great supply of cotton fibres
Garvin* Bantel Admits
which it was having difficulty in
Garvin, Bantel & Co., 120
disposing of at anything like a Broadway, New York City, mem¬
fair price. He went to the depart¬
bers of the New York Stock Ex¬
ment in charge and in a few days
change, on April 17 will admit
had made them a proposition and
Gordon G. Daniel and G. Donald
had it accepted; that if he could
Gallagher td partnership. On the
obtain a fair and reasonable price same date Thomas J. Thompson
*

ington. It

ran

Corporation.

was

he had it.

My

equipment

ill-fated timber

here

been changed to The Frank Coch¬

houses and

deal

A

ink blot¬

were sticking, out from each place
accomplishment he had separated the blotter. He
span of a few reached into his desk drawer and

231

was

journeyed
Tests

amount for fur¬

necessary

tests.

one

a
small magnifying
looked at the blotter
had
under the glass. Fibres were piled
previously with Smith, Barney 8z
fortune and he decided to go to one upon the other.
Almost in¬
Co.
:
Cuba -and enter the lumber- busi¬ stantly an idea came to his mind.
ness. He invested his entire capi¬ Cotton had been his business be¬

Weld

La

ther

there is

evening

out a way

seeming failure into the ing
success.

ply the

parting reminder — after
telling me this true and unusual
story Mr. Malone told me, "Yes,
to rebuild his business and his life one
good idea is priceless.
But

good ter into strips. As he sat there
idea, plus the determination to do and thought, and his eyes looked
something about it, that changed at the blotter, he noticed fibres

White, Weld Staff

CHICAGO,

turned

start of another financial

New York 5, N. Y.




give him
of

of
mining

Jamieson Co. Adds

Boston 9, Mass.

Co.; Sutro Bros. & Co.; and Thom¬
& Company.

as

The

(Speciar to

fifty Congress Street

of

highway travel through West Vir¬
ginia.

story that taken to Cuba.. He had no money
He
man whose and he was out of business.
enlarged, but as a result of the life has been living proof that the finally sent to the "States" for
expanded output of domestic 'iron power of sound ideas, which are some broad-axes and cut cross
ore the end of
their dependence backed
up
by faith and effort, ties from the fallen timber for
on imported ore is now in
can
sight.
whatever market could
be
ob¬
literally move mountains.

South

incorporated

ob¬

movement

primary iron and steel would like to tell you
has recently been greatly was told to me
by a

plants

White,

A. E. Ames & Co.

will'

single

their

at

walk of life, in almost injured,; I was injured too. What was asked, if he could supply a
to some extent, but oil and gas
every phase of business endeavor, had been a sound investment pro¬ larger sample. He replied that he
will further overcome this lack
certainly in the field of creative position just a few hours before could have a bale sent up by ex¬
and, at the same time, go a long
merchandising
and
selling,
the was now wiped out." In addition, press in two days but that he
way towards maintaining a bet¬ man who has the
ability to de¬ he told me that the Cuban Gov¬ didn't have the money to pay ex¬
ter balance in Canada's trade with
velop a sound idea and make it ernment insisted that he bring press charges on it, and if he could
the United States. The capacity of
work, is never lost. This week I back all of the laborers he had have it

Kimball. is

CANADIAN STOCKS

terrain

from, Charleston,

when he called

of this firm

tives

impressive
office. He
Michigan Corporation; Gordon asked the receptionist if she knew
Graves & Co.; Green, Ellis & An¬ the head man in charge of the
derson; J. A. Hogle & Co.; A. M. buying. She told him. Then he
Kidder & Co.; Laurence M. Marks said: "Miss, would you please take
& Co.; Neuberger, Loeb & Co.; this bundle
(containing the cot¬
Roosevelt
&
Cross,
Inc.; Scott, ton) in to him and tell him that
Horner & Mason, Inc.; Stein Bros. there is a Georgia farmer out here
& Boyce; Sulzbacher, Granger & who has enough of it, and who can

aspect

Canadian

major

present

(Special

Corporation

the" &
Co.; Baker, Watts & Co.; Cowan
&
Co.; Darby & Co.; First of

serve

Despite its central position in
operations appeared, so bal¬
the highly developed eastern in¬
both in the compass of
dustrial area, transportation into
their output and
in their geo¬
graphical distribution."

Provincial

WORTH 4-2400

will

219-460.

anced,

stems

Government

S.

have

The contribution of the primary
mining industry to Canada's net

,

location

Canadian

Bank

merce,

"At

and U.

heaviest truck movement crossing
the State, and, by reason of over¬

development, the "Monthly Let¬
inviting the interest of American ter"
continues, is that the supply
capital are the new oil stocks
of
indigenous
minerals
is
which have been offered to the
strengthened
at
its
two
weak
public since the beginning of the
points—fuel and iron ore. There
rapid exploitation of the vast oil
is no workable coal deposit in the
resources
in Northwest
Canada.

Route 20

The government

surplus, he

was

to have

will retire from the firm.

Volume

Number 5106

175

.

.

.

The Commercial and Financial Chronicle

(1511)
Continued

jrom

4

page

To

the

possible.

Our Inexhaustible Resources
the

loading

point

-

feet at different
We

take

these

aluminum

days.

It

about 18 cents
the

Civil

for

granted

in

pound.

Yet when
it sold

of

sort

ot

logically

for

you

as

,

so

material

raw

storehouse.

a

this

currently

started

resources

stacks

costs

a

War

natural

seasons.

rials

A

that

assumes

his

mind

the

more

in

locks
of

beginning to discover that the idea-

under

of

will

comes

to

necessary
tutes for bauxite

chemists
be

oxide

almost

find

substi¬

to

produce

from

the fact

storehouse

plant to extract mag¬

nesium from

water went into

sea

the

used

Magnesium
Ktuigue&Muit

another

r

future—there's

lot

a

of

water

Titanium

is

in

is

of

our

most

and

has

long

one

metals

known.

known

sight.
quite

What

how to

have

we

extract

it

not

in

paint.

lighter than steel,

from

But

it

stronger than

Present, extraction
still

heard

expensive,

that

-method is
With

story

a

the

of

extraction.

better

Here,

research

of

represents

material for

utilize

-

with

certainly

that

Dr.

were

and"

more

M

recent

API

put to

re-

oil or cubic
withdrawn

marks by
to

new

like

close

to

pointing out

this thesis.

,

In

not

a

Plastics

con¬

is

progress

A hint of some

only

of

month ago

bile
body
layers of

claimed

made

the

story I read

of

glass

automo¬

plastic

fiber.

body

have

may

an

is

and

It

was

dent-proof,

and, for
its weight,
than steel: ' When you

consider the large fraction of

output

bodies

you

in

mean

supply.
ther

that

of

materials

metal

sugar

be

can

made

hulls, the spent
and

cane

used

to

other

regard

as

These

benefits

available

are

to

as
they become economically
feasible, in that orderly natural
development characteristic of all

technical

progress.

We dis¬

covered long ago
that the real
usefulness of any new product or

begins only when its

process

exist, they

created.

are

know, for example, that in
mineral

great

of

it.

It

is

that

use

able.

Even

made

available

makes

when

econ¬

it

valu¬

wealth

the

is

the

So

march

the

up

steps

*

progress,

house to

storehouse—according to

which

from store¬

or

figure of speech you pre¬
not alone on the

fer— depends

continued expansion

knowledge and

on

scientific

of




J. R. Williston Adds
MIAMI

formerly with

was

BEACH, Fla. —Russell

Clair
are

and

James

R. Williston & Co., 411
first

Street.

SHEET

I ' believe,
think

of

Belgian Francs b)
in

hand, with the Banque Nationale
call

at

Balances
Head

due

Bills

term

Postal

Cheque Office__

to

In

progress.

nationalism,

fact,

government

'515.940.000,—

tions

have

many

sealed

storehouses

the

Banking

Affiliates—

assets

^

855.382.498,27
*

:

„
.

3.467.440.645,44
bills

i

Banque
the
Loans

and

bills

the

liability

to

up

with

Nationale

9.993.400.000,—

securities—

on

for

acceptances

receivable

Securities

16.560.840.645,44
173.898.866,62
3.208.385.607,75
4.734.740.543,64

portfolio:

Legal

securities—

reserve

*

Belgian

government

securities

Foreign

government

securities

Bank

stocks

Other

securities

Other

with

3.100.000.000;—

mobilizable

Banque
advances

Customers

rediscountable

Nationale

Government

50.000.000,—

2.288.785.668,55

—

2.430.004,—

—

-

596.098.574,50

236.034.364,—

—

assets

3.173.348.611,05
427.423.901,93

Bank
premises
Participation in
due

122.000.000,—
real

from

estate

real

subsidiary

estate

companies
subsidiary companies—

,

1,—

-'

1,—

v

LIABILITIES
Current Liabilities:

Preferred

Banque. Nationale
Other

Balances
Head

venture.

the. human

availability

so

of

will

be

limited

these

con¬

mind

and

shackled that the

natural
and

resources

we

sources

and

find

may

of

we

see,

ex¬

some

nothing

I think, that the most

important thing in

life

is

banks

to

'
—

Banking

Affiliates

—

Acceptances
Other

Deposits

sight

on

liabilities..

bills

in

time

or

at

20.362.791.754,40

i

(Royal

nr

from

Balanoe

brought

forward.

Ealance

for

revaluation

of

30.244.152.556,11

Reserves:

500.000.000/—

185

art.

—

deriving

and

.

Decree

U

Reserve

652.530.031,82

,

Capital
-

fund

22.669.597.796,51
328.985.545,—

.

...

reserve

2.306.806.042,11

...

:

j—

reserve

notice

securities

—1_—

;

Capital

month's

—

on

liabilities

393.834.478,44

accounts:

one

deposits
callable

393.506.230,19

392.739.843,91
collection

of

course

and current

Amounts

Other

term

for

28.136.555,99

2.176.436.466,50
3.208.385.607,75

_

short

Creditors

13)

investments———
and

50.000.000,—

—

——.

Profit

Loss

—

678.549.805,02

—

151.242.194,98

1.379.792.000,-

Account:

17.175.650,77

1951—.

197.854.425,70

CONTINGENT
Assets
•

pledged

for

own

215.030.076,47

Guarantees

spirit.

with

Banque

Nationale

(credit

others

of

account

of

——

—

—

exchange,

Securities held

in

safe

Monetary reform loan

custody
iLaw

a)

for

private

b)

for

tax-collectors

Other

b)

accounts

—

——————————————

—

of

14-10-1945

holders

art.

;

$1=50 Belgian francs.

.-

.

:

—:

—-

—

i,

—.

——•

—

2.529.427.694,57
1.209.670.471,55
62.073.356.981,98

1):

—

—

3.907.244.691,06

——

—2——

2.130.030.500,—
95.250.000,—
11.630.631.943,88

—

-i.—'

others—

rediscounted

Forward

20.030.500,-

.

———

:—.;

for

2.110.000.000,-

unused)L_

—

account—

own

received

given

ACCOUNTS

collateral:

pledged for

-Guarantees

Bills

as

account

aocount

Securities

replace it.
So

28.136.555,99

;'

communicate,

Without

Belgian Francs b)

Belgique

—

31.838.974.632,58
"

think, to

due

de

.

raw

The basic requirement for prog¬
is freedom—freedom to in¬

to

creditors

creditors:

Office, Branches and

for

to

guaranteed

or

to

ress

quire,

122.000.002,—
31.838.974.632.58

Legal

materials.

31.716.974.630,58

Fixed Assets:

Available

useful

of

/

449.069.971,22

1

bills

Government

controls

doors

■,

658.340.957,43

and

portfolio:
Trade

extreme

monopolies, currency restric¬
tions, abnormal tariffs, threats of
expropriation, wars and revolu¬

*

959.603.027,23

;

banks

Branches

short

and

,

from

Office,

Other

;

-

6.369.783.967,24

827.879.779,38

B.

affiliated

now

Current Assets:

Mcney

Southeast

(Special to The Financial Chronicle)

Chronicle)

31st December 1951:

industrial dar¬

Those conditions in many parts of
the world today are not conducive

to

to

He

BALANCE

of

material

needed material

tended

Financial

Cologne

with Francis

-

a

wastage of war
are
additional
complications to consider.

doubt.

have

are

&

3, Montagne du Pare, Brussels, Belgium.*

Amounts

haust the known

people

Pont

THE LEADING BELGIAN BANK WITH 130 YEARS OF EXPERIENCE

Cash

as

as

Chronicle)

M.

Societe Anonyme

through technical

but
the
usefulness
of
such
a
project is clouded by considerable

any 'years,*

The

May

the accelerating growth of
populations and the enormous

spirit will be

We could, for example,
bananas at the North Pole,

m

du

means,

replace.

For

to

CLEVELAND, Ohio—Francis J.

-

wealth,

not realize the wealth exists or if

ditions,

*

Financial

BANQUE DE LA S0CIETE GENERALE DE BELGIQUE

can

omy in use surpasses the economy
of that which it is supposed
to

*

(Special

C. J. Devine & Co.

Accounts

and

us

grow

mate¬

raw

im¬

waste.

true

sense

ing and managerial skill, but also
consider fur¬ on political and social conditions.

you

plastics

we

of

especially

from corncobs, oat

fibers

auto

imagine
plastic body

terms

That's

pressive when

into

goes

our

perhaps

successful

a

would

that
can

The

and Max Thiede

With First Michigan

be

they do not know how to get at

rust-proof,
stronger

the

'

in

vast

grind out their lives
infants
in poverty and misery if they do
Grandaddy

comparison
with
Glass—there seems no limit to the
possibilities
of
synthesizing or¬

a

real

very

people

plastics—mere

a

to

MIAMI, Fla.—Ruth

also

Co., 121
& Co., Incorporated, investment'
Second Avenue.
bankers, New York City.

.

materials

bow

matter

no

region

been contained in

is

corollary

a

raw

-that

mean

rials do not
We

come

Bogie

I.

re¬

my

that the

It is

unlimited

of

terials,

terials whose
supply is practically

things to

Mr.

Per¬

improved
in recent years to the
point where amount, do not become available
resources
until
human
it can substitute for
thought
many other
materials.
And it is made of ma¬ and effort are applied to- them.

the

(Special

America, it has been-

President of Schroder Rockefeller1

'

-

as

Two With F. I. du Pont

Railways

ASSETS

would

I

our

been

ganic compounds.

*

Lutz

Davis

1951, two new

and newly discovered ones. simple and that Utopia is near at
Glass, for example, is an ancient hand.. On the contrary, raw ma¬

in

1952'
'

J.

*

to

uses

for

of

International

announced.

"

±

of

Central

of

C

will

Albert

i

an I

familiar

developed.*

or

rectors

Streets,

Citv

Ribble
F.

Jr.,

cubic feet of gas

or

:found

R

E.

Carl

*

haps the idea is getting around,

does

unlimited.

Victory

p.m.,

o

I notice, though,

Leahy's

barrels of oil

terials—-both old

has

of

the

Treasurer and Richard J.
Handly,
as Assistant Treasurer.

Bogie

Mord M. Bogie has been elected
Chairman of the Board
of Di¬

1952,

wuiio™

^' Ybrk

man-

But it is

not

from the ground in

cept

what

Mord M.

Lady

Darrah

Secretary,

Anniversary

port is receiving wide publication.;
It's the one that shows that for>

supply of metals is being
supplemented by other rigid ma¬

that

.

of

announced the re-elec¬

other

Our

product

Our

directors

Vice-President,

.

It is held by

new.

He also

It is-wives

ingenuity and skill/

number of persons.

ingenuity

ones

to

raw

people at large.

new

in

as

-

that

ocean

idea

the

have been great
multipliers of
natural resources.

steel

%

anc* friends at the Terminal Eagan has become associated with J, St.
the entire- Restaurant,
47
Vesey ' Street, the First of Michigan Corporation' liams
and • air—New York
City, at 6:30
of Detroit.

globe—earth,-

a

methods " of

and

inconceivable

all

tion of H. A. Riecke as Chairman
of the
Board, John E. Parker as

the.a get-together of all members,

beginning /of

every barrel of crude
foot of natural gas

widening

discovery

and

fields,

of

,

still

This conception of limitless raw

have

metal

every

repeated —of

sources

I

the

that

company were re-elected at the
annual stockholders'
meeting.

.Anchor Club
21st

still;

is 'probably

material is not

economical

being developed.

almost

is

As

con¬

President,

-

was,

series of storehouses.

kind

processes

but

more

it

near

more

is

aluminum, and highly heat resist¬
ant—hence potentially very use¬

v

Hotel
more

term, impossible.

larger. at

there

room beyond, -larger

not

earth's crust at a cost which
would make it economic for
largescale use.
Up to five years ago
titanium was used
chiefly as an

ingredient

this

discovered

Yet

whole

the

use,

dinner for employees last
Friday at the Benjamin Franklin

that material progress

ln whlch
stand at 1New ;*orK
^e middle of the 20th century is' *Jn further celebration
s3 vast ^at
walls are beyond unit's anniversary there

t

abundant

of

The r00m

•

sea.

contents

he

room,

pruaucuon
in
me
production
in
the
United States for 1952 is expected
to exceed 100,000 tons. As for the J

are

annual

source

only valueless without spir¬
progress, it is, in the long

series.

a

energy

un-

April 21,

operation only 11 years ago with
a
capacity of 9,000 tons a year.

ful.

of

re-

that

.

The first

been

itual

found

man

one

key

Pa.—John E.

Parker, President of H. A. Riecke
&
Co.,
Inc., members of
the
Philadelphia-Baltimore Stock Ex¬
change, announced at the 13th

infinite power of the

am

that the first.

which

only

H. A. Riecke Re-Elects
PHILADELPHIA,

•

clays.

the

in

was

Instead,

<

inexhaustible
the

is

greatest

ail—the

is not

are

we

Bogie Director

As he used up what was piled in... The. Wall Street Anchor
Club
that first room, he found he could
(No. 18) will observe its 21st anfashion a key to open a door into
niversary
with
a
communion
a
much larger room.
And, as he mass at 8:15 a.m.

bearing

-

to be

seems

himself

aluminum

aluminum

Now I think

correspond with reality.

alunite ores,

or

get to the bottom

you

a
storehouse—or, at least, asingle-room storehouse—does not

be¬

ever

confident they will

seem

able

If it

sooner

are

value—exhaustible

into
It

-

the

vinced 1

800,000 tons per year, and plants
construction

great

The longer I live the

resource,

of the pile.

the

things

human individual.

$545 a pound. United States production
now
amounts
to
about

double that figure.

of

sources.

up

with

person

picture

of any natural

use

many

piled

all

man,

Opportunity is the wand
which can change the useless into
/'the useful—waste into*raw mate■

resources

43

fluctuates

'

free

23

_7.197.663.746,62
8.913.016.097,30

Wil-

with

J.

Seventy-

81

(1512)

<

in every
'

Continued, from page 5

•

J

i

Those

*

i-

4

1

during the present

We have

year.

Will

soon

base

able

give
to

us

industrial

an

support

War program when
should be needed.

all-out
if that

an

and

However, there

ift

increasing our capacity to pro¬
duce steel, copper, aluminum, rub¬
ber, certain chemicals, power and
petroleum.
In September, 1950,
the leaders of the steel industry
at my invitation met and discussed

1949.

While

I, of

course,

elaim

no credit for what has hap¬
pened since, it has not only been

fedssuring—it has been almost
believable. I had asked for
ten

statement

the

of

un¬

writ¬

a

increase

in

brings

As the materials sit¬

Iron and Steel

Institute, wrote

me

additions

of the end of 1952

as

109,900,000 tons.

We

dhe

of

million

tons

as

within

are

that

goal

at

of

year

World

We have increased

War
basic

our

II.
ca¬

pacity for aluminum manufactur¬
ing almost 100%.
While

I

prefer
complishment in

to

measure

terms

of

ac¬

tanks

and planes and

dollars,
tripled
since

ships, and not in
expenditures are one

our

Measure

of

effort.

our

defense

our

1950.

The

We

have

expenditures
rise in

entire

budget expenditures of 1951
1950

due

was

to

over

increase in

de¬

ognzzes

still face the

a

controls

have

we

employed

produced beneficial results.
increased production

have

vastly
added

has

these

to

good

results.

Have we, then, no need to fear
inflation? We need not fear infla¬

tion if

hold to the program we

we

retain the powers of

have laid out,

which the

control

Congress gave

prices and wages.
I feel certain that Congress

rec-.

the chaotic results which

being and in not reach¬
advantages.

the time

ing for
Have

group

reached the point

we

some

soft

whole

organism is a sponge?

think

Do
the

fear

I do
im¬

maximum

The

so.

pact of actual defense lies ahead.

expenditures of $150 bil¬
lion are yet to come from present
and recommended 1953 appropria¬
tions.
for

Furthermore,

plant and

new

expenditures
equipment* in

at

survey

Act

will, therefore, extend it even
though perhaps for not so long a
period as the President has re¬
quested.
is my

it is

When

extended it

hope that all officials who

administer

will

it

less and less

its

use

powers

the need for their

as

exercise diminishes.

Production
erates

trol

based

upon

Business Economics and the Secu¬

rities

Exchange

and

going
early

that

—

we

It is

interesting

la&ls,

has

Ot its

success

been

successful.

Much

is due to the fact of

World War II experience and to
the additional fact that this expe¬
dience

has been

utilized.

.JOi course we have heard criti¬
cism of this effort and unques¬

ranted,

the situation has

as

further decontrol
on

war¬

actions

other leather

glass containers, plas¬

on

tic type nylon, and several
Rubber

chemi¬
It has

included.

was

been completely decontrolled
will be shortly after I make

months
head

suggested

I

ago

the

of

National

to

the

Production

my

April 1 the number of employees
in NPA is down to 4,417.

We are

not

satisfied, however, and are
to a reasonable level, they will sure that day by day we can re¬
duce materially the number of em¬
begin to spend their money and-

savings feel that prices are down

cushion

thus

the

of

effect

any

tendency to recession in business
activity.
We must not overlook

ployees and
to

I make this speech

as

These
mine, of course, are

that is being done.

you

statements of

the

psychological factors involved. qualified by the condition that

As

I

stated

earlier, much of the

first
first

unless

Public

Controlled

Materials

The

Plan

has

the future and true of the

reverse

are

all-out
If that should happen, our

half the

This process for the most

process.

the

At

beginning of

We have no reason to

Mfd has produced

I

an equitable distt^bution beyond that point to ci¬

vilian

users

in

accordance

with

the mandate of Congress.

that

of

could

see

ness

Living Maintained

proper also to point out
fl&t the mobilization program has
been carried on without reducing

officials

hold

a

gov¬

steady

and are careful about what

they do and

say. This responsibil¬
ity rests most heavily upon those
of us in government, but those of

in business

are

not free of it.

the

high standard of living of the
American people.
This has not
been because in

our

allocation and

^9e of critical materials

we

pre¬

This may lead in your thinking
to questions about decontrol.

ferred butter to guns. I repeat
my
$®dlier statement that at no time

firm

"Shy at no point has the military
fjfbgram been delayed because it
^Chuld not get the materials which

abandon all controls

needed

or

said that it needed.

During this time unemployment
has

been almost nonexistent and
business failures have been at an

aft-time low. Americans
today are
W?ry well off.

This

includes

the

our

action

and,

must

for

be

the

Here

cautious
near

but

future,

highly selective.
it would

new

be

In my judgment
folly at this time to
or

fail to

re¬

the present Defense Produc¬

tion Act.

Any day situations may
develop either at home or abroad
which will make the need for
trols

con¬

imperative.

They should be
available, but what we public of¬

laborer, the farmer, the business¬ ficials must do—and as I said in
man, and the ordinary citizen. In Tallahassee what you should make
1951 American corporations earned




us

do—is

to

decontrol

continually pressed upon

are

both

promptly

home

at

there is
need

no

for

will lapse

and

reason

abroad,

our

us,

and

to feel that the

continued

a

build-up of

and

strong

military strength

at any time within the

future.

near

No

Controls Still Needed

Light Co.

knows what

one

our

econ¬

omy can stand. If we get into allout war it will have to stand every

sacrifice.

Regardless of theoreti¬

cal limits to

durance, in
gle

we

our

a

strength and

en¬

life and death strug¬

could

give

no

anything but victory.

thought to
That alone

would

preserve
our
democratic
civilization. However, short of all-

out

war

and

tion for what

perhaps in

prepara¬

must be

prepared

we

to do if that does come, it may be
well to review our situation, sur¬
vey
some

our

balance

sheet, and set
expenditure of
and our resources. This

limit to

our money

revenues.

private utilities in

thi^ industry the company relies
needs

94%

are

(with

contract to 1956).

a new

Revenues

electric, 4%

miscel--

steam heat and 2%

has installed capacity of 177,000 kw,
of which some 91,000 is at the Merwin hydro plant. Smaller hydro
plants bring the total hydro to 122,000 kw., and steam and diesel
plants (mainly old) contribute about 55,000. An important newproject adjacent to Merwin is the Yale hydro plant, which when
operated in tandem with Merwin will produce 550,000 kw. annu¬
ally, compared with last year's total output of 1,745,000 kw. With
the Yale plant in operation next year the proportion of purchased
power can be reduced from 58% to 35%, it is estimated.
laneous.

The company now

The entire

common

stock, formerly owned by American Power

sold for $16,125,000 in February, 1950. Later in
the year 1,078,000 shares were offered to the public at $14 while
the original group of buyers retained 671,000 shares.
Last July
250,000 shares were offered on a subscription basis at 14
and an
additional 291,000 shares held by the banking group were also dis¬
posed of. In January, 1952, 200,000 additional shares were sold at
15% for the company's account, and about 353,000 for the banking

& Light Co., was

group.
It is understood that large
13% of the outstanding amount.

stockholders still retain about

merged with Northwestern Electric Co. in
general recapitalization. The record since that date

The company was

1947, with
has been

a

as

follows:
Revenues
-

1949

1948

be compla¬

Our national debt is not be¬

mand upon our economic resources

to

Utility Securities

on

which it has

talk I

feel that busi¬

reason

icky if business leaders and

you

cent.

my

the country will get pan¬

no

or

the

back—others

Federal hydro power, buying over half its
indirectly from government projects, principally Bonneville

partially

economic strength.

our

ing reduced; it is being increased.
Programs which make a great de¬

ernment

it is

by

unwise action
perhaps affect it the wrong way.

course

Standard

in government except

us

we

company's

Like other

1950

those of

prophecy

and

90 communities in Washington
and Oregon, the population in the area being about % million.
Agriculture is the principal activity but paper, woodworking, food
processing, flour and feed mills are also important. The cities of
Portland and Yakima are the largest served, accounting for about

review.

referred to

the

Coast

The

to

me

Pacific Power & Light serves

and our thinking would
the need for an immediate

part will be beyond the control of

despite

take

will

will follow.

Pacific Power &

we

not driven to engage in

of
failure. It has in the first place
•Secured channeling of all materials
to defense as they were
needed,

WOrked

one

By OWEN ELY

1951

Mi result has been excellent.

think we
While I

should not do.

leg of these trips today.

Pacific

into

it, and in that year of 1949 I un-

face

will be true in

same

ourselves

scared

we

Year

The

were

a

program

factors.

but to find

people

business

predict¬

ing

war.

over-

to

depression, I stated that I
felt we would have no depression

of the Government

inflationary pressure in 1950 and

minimum and the

or

not do,

the

reasonably

am

perhaps certain aspects of the

early 1951 involved psychological

a

should

military program itself.

been made.

been at

or

what

out

our

around

well-informed as
opinions and condi¬
Meanwhile, another thing can tions, I am certain that this survey
will be of great benefit to me
be done and I propose to do it. In
1949, when many within and out officially, and I am beginning the
and

judgment the mistakes have

tionably mistakes have
m

savings. As time goes on and

those who have accumulated these

do

should

parts of the world but

many months.
As
last July, the decontrol
began with the revocation

as

sonal

a

of

move

as

that time

now

also

official chairs
through the
country — not to make speeches
and
tell
the people
what they

and

of the order on sole leather. Since

or

volume.

I feel it is wise for those
Washington occasionally

out

get

would decon¬

billion, which means that business
this talk. The same is true of lead.
expects to maintain its recent rate
Along with decontrol of mate¬
of capital outlays throughout this
rials has properly gone a reduction
year.
If these plans are realized,
1952 capital outlays will exceed in the number of employees han¬
the previous high in 1951 by 4% dling the control mechanism. Some
in

in

us

to

only
Europe and

Western

to

have

propose

spot from those who are not

ington.
of

and

not

for

on

process

$24

in value and would also exceed it

the

the demands of domestic programs

rapidly as possible.
the sincerity of that
statement, I might point out that
decontrol
operations have been

cals.

for

aid

other

to

I

emergency.

as

Commission,

scheduled

currently

are

op¬

all

In proof of

have been taken

survey

a

Authority, which

with

time

dealing

which
through this

purpose

clearly

within the Commerce De¬

just
completed jointly by the Office of products,
1952,

this

visable
similar

Production

Defense

of

feels
have

too close to Government in Wash¬

which the

safely

us

me nor

people

again to take a trip throughout
the country and to examine con¬
ditions and receive opinions on

wisely extend aid to Western Europe."
I believe it might be ad¬

and

the

where partment

depression?
spots prove that

should

we

could

States

would follow the failure to renew

outlays.

the NPA, which has had the large
Share of responsibility in connec¬
tion with the distribution of mate-

ap¬

see

present

commission "to deter¬

a

moment ago that we have at the
moment relative stability. The di¬

we

Our program has to note that the survey just men¬ Authority the desirability of a
careful survey to eliminate unnec¬
rapidly as we have tioned shows that manufacturers
desired or hoped. It is not true, anticipate sales 5% higher than essary employees and reduce the
payroll. This was promptly and
however, that the military pro¬ last year.
cheerfully done — first by Mr.
gram has at any time or at any
Personal Savings
'•
Manly Fleischmann and then by
point been held up because avail¬
his successor, Mr. Henry H. Fowler
able materials were not allocated
I have referred previously
to
—and it is still going on.
to it. I feel that the operation of the enormous accumulation of
As of
per¬
fense

AOt moved

was

United

Defense

best

pointed

Plan

President

mine the limits within

have been substantially exceeded.

ttoe

the

implemented,

steadiness

the

with

American

the

will

war.

Marshall

the

ship between shortages of mate¬

not

domes¬
tic consumption in 1951 were eight
Million tons higher than for 1950
ahd 20 million tons in excess of

Before

rials and

this time and by the end of this
year unquestionably that goal will

Ifihished steel products for

the event of a

dangers of inflation? Do we face
the dangers of deflation? I stated

Do

belief.

my

AAtlfl

A1 1

«

throughout the coun¬

out the soundness of
Today, as then, not

that

to

us

AM

try to find

spending and using
resources;-but at the same

our

n

the situation

recognize

expenditure. The point fixed could
leave
an
area
of
elasticity or

About my own department and
Capacity which they thought could us some months ago, and are able
be accomplished
by the end of to persuade both labor and man¬ decontrol, I have said on numer¬
ous
occasions—and so have the
1952. On Sept. 29, 1950, Walter S. agement that our best interests lie
Tbwer, President of the American in maintaining this stability for Administrators of the National
& letter in which he gave me the
available capacity with planned

to

months go

other items.
review

ahead of us?

Our

this direction.

effort

an

for

everyone agrees

the uation eases the general need for
point which I mentioned in the price and wage controls will
beginning of my talk. What lies lessen. There is a close relation¬

Uftd

in

be

highest profits in their history. by—perhaps early in 1953—decon¬
they aggregated $44.5 trol of steel will be in order. That maneuver between the most we
billion
as
compared with $41.4 will certainly not be true of cop¬ should do short of all-out war and
billion in 1950 and $28,3 billion in per nor will it be true of many what we will be forced to do in

rect

commitment

iU

.1.

111,

need

time the need for caution in that

the

the question of expanding capac¬
ity. I strongly urged their prompt
enthusiastic

the

Before taxes

This

We have made enormous strides

in

will be vast differences. It is fairly
clear that before many

created additional facilities which

_

should

willincrease

areas

number and size.

Where Are We Headed?

dertook a survey
of opinion
and
4kl*A1 ffK
4-

separate area
where this everything we can possibly d<r. Ittf
'

L t-

is desirable.

The

6.4%.

stock

$19,700,000
18,600,000
17,500,000
16,100,000

Earnings

Dividends

Price Range

$1.57

$1.10

16

-

13

1.61

0.55

14

-

13

1.02
0.63

currently selling over-counter at 17 V\

is

to yield

President McKee estimates earnings of $1.68 in 1952, includ¬

a substantial interest credit on new construction.
In 1953,
operating savings from the new plant are estimated at $1.6 million,
equal to about 35 cents per share after taxes. Also beginning in
1953 there will be large tax savings resulting from accelerated
amortization of 75% of the $29 million Yale project. While the tax
savings resulting from amortization may be somewhat irregular,
they should average about $1 a share over the five-year period

ing

beginning 1953, it is estimated.
Apparently the company does not have a very large
surplus

on

earned
that

its tax books since the management has indicated

dividends in

1954 may include a

1955-57 inclusive the tax-free

small tax-free portion.

During

portion might approximate 55-60%

However, It
used to increase
dividend payments since they are earmarked to repay about half
the cost of the Yale project by meeting instalments of $13 million

of the

dividend, it is estimated by President McKee.

appears

unlikely that these tax savings would be

serial bank notes.

This should improve the capital set-up

allowing for the recent stock financing, is

which,

approximately as follows:

Capitalization—
Long

Term

$51,500,000
9,000,000
Equity (2,200,000 shares) *21,700,000

63%
11
26

$82,200,000

100%

Debt

Preferred Stock
Common Stock

the

limit should not be

an

estimate of

'Excludes $2.6 million

intangibles.

Volume 175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1513)

sai

■

"vi. ;f

SUMMARY

OF

ANNUAL

REPORT

FOR

1951

Gross

operating revenues in 1951 reached an allhigh, principally because of the sharp increase in
export of bituminous coal, heavier movement of mer¬

employee, $8.78 for each share of Common Stock and

time

chandise

during

a

freight and small increases in freight
part of the year.

24

the ratio of
was

operating

reduced

per cent.
Total

$14,325,000
amount

were

$49,426,000,

1950,

over

for 1949.

operating
cent in 1950

expenses to

from 69.29
per

taxes

continued

costs

share

a

and

an

more

Taxes amounted

to

rise,

to

revenues

66.92

to

increase

than

twice

of
the

$2,143 for each

a

share

on

Common Stock.

dividend

extra

an

and

The

equipment

gondola

cars, 500

box

150 covered hopper cars,

switching locomotives.

Experimentation with
electric

of coal-burning turbine
experimental steam
locomotive, with boiler pressure double that

locomotives

turbo-electric
of the

conventional

ready for trial

runs

two types

continues.

An

locomotive, is expected to be

steam

within the

next

twelve months.

INCOME STATEMENT

Other Income:

1951

on

9,372,667

8

6,067,881

Inc.

1,298,071

27

9,713,443

Inc.

1,472,169

18

38,598,993

23

1,528,730

12

445,724

21

37,515,987

21

Inc.

30,444,770

$

Dec.
Inc.

$ 220,159,307

Inc.

$

$

$

27,319,472

Inc.

>;:■

39,026,989

Inc.

33

61,218,989

2,952,453

12

6,592,163

20

Inc.

.10,997,200

22

10,692,882

Inc.

1,306,234

14

$ 138,258,332

Inc.

21,848,050

19

49,426,139

Inc.

14,325,157

41

99,845

5

24

'

Funded Debt

1,723,732

■Total»

$ 189,408,203

Net Income

,

$

Sinking Funds and Miscellaneous Appropriations.....

Balance of Income




5,383,983

$

$

$40,053,472

State, County and Local
Interest

Inc.

'

Railway Operating Expenses

Taxes—Federal.

*

Cent

Other Charges:

Way and Structures—Repairs and Maintenance
Equipment—Repairs and Maintenance
Transportation—Operations
>
Other Expenses.
Total

Per
..

Inc.

2,519,093

Other Income—Net

1950

68,274,214

11,044,781

Total

with

122,539,895

$ 206,595,433

Railway Operating Revenues
Income—Equipment and Joint Facilities—Net....

and

'

.

1
.

.

1,000

4 heavy-duty, coal-burning steam

cars,

road locomotives and 15

Passenger
Mail, Express and Miscellaneous

Expenses

cents.

for 1952 and early 1953 includes

program

2,610 hopper coal cars,

Other

Rent

50

fifty-first consecutive year that divi¬
paid on Common Stock.

EQUIPMENT

Freight—Coal

Total

of

the

Comparison
Revenues

of $1.00

rate

During the year, 146 new industries and additions
existing plants, with a combined investment of
$132,000,000, were established along the lines of the
railway.

for

CONDENSED

marked

the annual

at

Adjustment Preferred Stock and

to

is in

improvements,
modernization and equipment have amounted to
$142,639,000, all of which were made from the Company's
treasury.
Uncompleted authorized capital expenditures at
the beginning of 1952 totaled
approximately $37,153,000,

on

of $3.50

rate

dends have been

Capital expenditures for additions and improvements to
properties amounted to $9,584,000, while $18,958,000
was
spent for new equipment and equipment betterments.
A main line change and
grade revision, five miles in length,

expenditures

Dividends

latter included

This

fixed

capital

operating revenues.
outstanding stocks totaled

on

paid

were

the annual

The

PROPERTY IMPROVEMENTS and

progress.
Since
1945,

for each dollar of

$20,570,000.

rates

at

Although labor and material

cents

Dividends

30,751,104
1,329,284

$

29,421,820

•

Dec!
Inc.

$

36,073,362

Inc.

$

1,442,625

5

102,935

7

1,545,560

6

Dec.

Inc.

$

f*v

26

The Commercial and Financial Chronicle

(1514)

Continued

from

page

.

.

Thursday, April 10, 1952

.

advances to political

3

favorites

or

for

purposes
which would not
meet experienced business anal7

ysis.

Government Relations to
Aside from the efficiency

Gulf, Mobile & Ohio
stocks

Rail

.

far

have

developed

a

buoyant tone in the past
weeks or so. With good vol¬

more

two

and some

ume
even

oil

really sharp gains

that

those

among

they

prospects,

have

have

ket.

have

There

no

pretty

well dominated and led the

mar¬

probably

been

two

particular influences at work.

For

one

thing, the I.C.C. decision

on

rates is expected momentarily.

It

may

by the time

this
light of day.
Most quarters expect good news
be

column

this

on

out

the

sees

the

for

sons

is

It

month

true

influ¬

second

the very

favorable

compari¬

earnings

year-to-year

that

of February.

favorable

the

comparisons
attributable to one
circumstance, namely

February

earnings

largely

are

particular
the

.

The

score.

has been

ence

railroad

strikes

that

dis-

business a year
earlier. Regardless of the cause,
however, it is obvious that the
railroads are getting off to a good
railroad

rupted

start this year,

with

cushion to work
the

of

ance

in

sulted

a

on

a

substantial
the bal¬

over

year. This
has re¬
growing feeling in

"many quarters that earnings for
the

full

1951

year

rail

most

basic

analysts

traffic

and

revenue

pros¬

has

operates in territory that

benefited

from

dustrialization

growing in¬
trend

and, this

has presumably not as yet run
course.

In

particularly

if

raises

favorable

some

For

time

some

now

v

*

stagnant

in

or

of American

sults

in

than

exports

imports

currency.

the

James

E.

Lynch

seek.

(Special to The Financial chronicle)

BOSTON,

occasional

periods of general weakness. Until

raid

a

currency

or

Experience is

of

for

gold

Mass. —James

E.

Lynch has become associated with

Reasons

are

not far to

If foreign holders of Ameri¬

currency,

the

dubious

ble American dollars

in recent years and,

to

roads, has

a

Outside

any

the

interest

Hence

rate.

Calgary

Texas Calgary was organized in

October,

1948 and

is

engaged in

nation.
would
our

In

fact

other

countries

offset

to

the

business

of

reached.

As

instrument

an

for

controlling
or
regularizing the
economy, the money rate is not of

primary importance, provided in¬
telligent credit policies prevail.
Of course cheap money increases
the demand for credit, and if those
in control of issuing credit are
foolish enough to meet the needs
of
marginal borrowers, particu¬
larly in boom times, then the in¬
terest

rate

of

becomes

im¬

some

the

trol

intelligence and

self-con¬

those

the

of

in

say

who have

issuing

final

withholding

or

credit.
in

Moderation
Second
currency

retention

and

which

of

permit

those

conditions

currency

gold

con¬

function,

to

with

pares
over

38%.

industry average of
Moreover, this favor¬

an

able trend has continued into the
current

Net income topped
last year's levels in each of the
first

year.

two

months

despite

a

very
substantial increase in Federal in¬
come

tax

months

accruals.

through

For

the

two

February

the

transportation ratio was down to
29.4% from 31.2% a year earlier.
Maintenance of way outlays con¬
tinue high but even at that the
road should be able in 1952 to

report

appreciably better results
than the $5.69 earned last year.




abroad and observation at home,
I believe it fair and accurate to
state that

government treasury
expected to

a

confidently

be

may

focus attention

on

the cost of sup¬

porting the national debt and the
machinery for financing govern¬
ment

operations, whether in nor¬
or
in -emergencies.
There is less concern and perhaps
times

mal.
less

ability to understand the

central banks could be cited.

Per¬

haps there are even more ex¬
amples of foolish treasuries and
Avenue.'
sensible central banks. So giving
one or the other group a dominant
voice is no answer to the problem
Security Assoc. Adds
(Special to The Financial Chronicle)
of skillful treasury management
WINTER PARK, Fla. —Parker or constructive central bank pol¬
C. Banzahf is with Security As¬ icy.
One thipg i£ certain, JiPW.evcr.
sociates, 317-139 East New Eng¬
land Avenue.
Since
the
treasury
ordinarily
manages
the public debt,
and
since by painful experience it is
With Waddell & Reed
known that revenues are equated
(Special to The Financial Chronicle)
with difficulty as compared with
BEVERLYHILLS, Calif.— expenditures, there is a strong
Pearl S. Maddox is with Waddell and inevitable
predilection on the
&
Reed,
Inc.,
8943
Wilshire part of all but the most experi¬
Boulevard,
enced and foresighted treasury of¬
4

t

eco^
essential

is

which

climate

methods and

which

other factors

determine buoyancy or stagnation
in the economy.

officials

tend

In short, treasury

to

routin¬

become

with no large grasp of the
dynamics of an expanding econ¬

eers,

These comments

omy.

presented

as

and

no

imply

would

be

officials

merely
fact,

are

statement

of

special criticism. It
surprising if treasury
imbued

were

with

the

imagination which
are
essential
to
an
expanding
economy. At the same time, this
very fact constitutes an excellent
reason
why the economy should
not
be put or maintained in a
straitjacket which is devised and
operated by the treasury.
and

energy

Central Banks

Closer to

Business

Central banks by their very ma¬
ture

closer

are

to

than

business

government treasuries.

Prob¬
ably because of this fact their rec¬

are

of response to business re¬
quirements is better than that of
government treasuries. This does

suring saving and investment

not

the

part

private

of

which alone

can

guarantee

panding

economy

standard

of

on

individuals
an ex¬

rising
All types of
credit institutions have an impor¬
tant

and

a

living.

role

again

to play, but experience
demonstrates that a gov¬

*

ernment

poorest
which

agency
is one of the
administrators of credit
be

can

am

not

devised.

has

handled

of

aware

In

fact

I

ord

signify, however, that central
should
assume
rigid and
far-reaching controls which might
banks

be

transferred

treasuries.

should

market

credit

from

Rather,

and

government

competitive

a

normally apply to
interest

to

itself

But

ernment.

at

with

the

same

time

government itself should not
tend

withhold

or

rowers

are

not

credit.

ex¬

If bor¬

able, to meet

re¬

quirements which government it¬
self has formulated; for obtaining
loans, then such borrowers should
not be accorded

rates,

in

precisely the manner that a com¬

petitive market has amply dem¬
onstrated its superiority to con¬
trols in the fields of wages and of

an

,

com¬

living.

basis of my experience

On the

principal instrument for support¬
ing a stable economy and for as¬

moderation in credit policy is the

,

tion ratio below 30%. This,

standard of

establishment

-

with Merrill Lynch, Pierce, Fenner
& Beane, 100 East Robinson

depreciation, loading use¬
public debt and
causing
that
general
malaise
which brings about constriction in
production and decline
in the

Policy

convertible

a

a

into

vertible

Credit

only to
and the

the

very small and select
list of carriers with a transporta¬

and

less losses into the

important commodity prices.
Since central banks
undoubtedly have to follow governmental credit agency which

lead and establish convertibil¬

best

rency

nomic

restraint
prospecting, ex¬
constantly
ity if they expected to retain their and
effectiveness
over
a
pro¬
ploring, testing
and
exploiting
rising spiral of wages, and fuel
relative competitive positions.
longed period of time. Hence the
oil,
gas
and mineral
lands
in
*"Sfcid material costs. An important
credit function is properly a part
Canada
and
throughout
the
^contribution to this record has Southwest. In addition to the No Such Thing As Independent of the private economy, rather
Treasury or Central Bank
■been the fact that Gulf, Mobile &
than of the government.
wells which the company owns,
Ohio was the first of the major
There is no such thing as an in¬
Texas Calgary owns large invest¬
It
is
appropriate for govern¬
railroads to become fully diseldependent
treasury
or
indepen¬
ments
ment to formulate rules of pro¬
in the securities of two
ized. Also, it has been a heavy
dent central bank. Each is a crea¬
cedure
and
assure
itself
that
companies, one operating in ture of circumstances.
Each
is
buyer of modern rolling stock and Canada
these
rules
be
observed.
Fair
(Empire Petroleum Ltd.)
the average age of its
necessarily guided by the judg¬
freight and the other in
Oklahoma.
practices are as essential in the
ments of men, and these judg¬
equipment is far less than that o£
area of credit as in any other im¬
ments may be trained or befud¬
most railroads.
portant segment of our economy.
With Merrill Lynch
dled,
experienced
or
amateur,
Reflecting the sharp economies
Standards of conservatism, as well
economically minded or politi¬
(Special to The Financial Chronicle)
that have been made possible by
as
periodic
examination, may
1 ORLANDO, Fla.—Frederick A. cally minded. Numerous examples
these programs, the road last year
of sensible .treasuries and foolish properly be established by gov¬
Preller
has
become
entered that
connected
efforts

,

been successful in its

as

the

of

one

quickest methods of causing cur¬

cheap money cannot properly be
for vigorous production and ex¬
regarded as a stimulating factor of
change of goods and
services;
great importance in the down¬
There is also less urgency on the
ward phase of a business cycle or
at the bottom of a depression. But part of treasury officials in their
determination to maintain stable
it is a powerful force in carrying
currency and to prevent or abol¬
a
boom, both in time and in de¬
ish restrictions and controls on
gree, to dangerous levels which
would
not otherwise have been prices, exchange rates, operating

at the pres¬

Stock Offered

far greater extent than most rail¬

other cost of de¬
termining whether or not a pro¬
posed investment program should
be inaugurated.
Interest appears
in the
price of the product or
service, and usually that factor is
So
unimportant
that
decisions,
whether affirmative or negative,
are based on considerations quite

for example, prefer
safety of inconverti¬

can

ent time, as compared with al¬
Co., Inc., 31 State Street.
very recently it has not, however,
ternative forms of Wealth, certain¬
Mr.
Lynch
was..
formerly
Vicebeen doing much on the upside in
ly they would have even more
President
and
Manager of the
periods of general strength. The
reason to hold such currency if it
trading
department
for
W.
F.
R-utstrong action during weak mar¬
were convertible into gold on de¬
kets
is
highly encouraging to ter, Inc.
mand.
V;' \ *.I
traders, who lean to the opinion
Finally, there is no need of
that
this
must
eventually
be
waiting for an international
matched by a greater market re¬
agreement or for some other ex¬
sponse to the broad upturn. Some
traneous reason for returning to
analysts lean to the opinion that
gold. A convertible American dol¬
the stock even after recent ad¬
Approximately 50,000 shares of lar would promptly be preferred
vances, is well behind the general Texas
writing
international
con¬
Calgary Co. stock is being for
run of rails
and could prove one
offered
at
and
the
United
States
$3.25
per
share by tracts,
of the most dynamic actors as it
Troster,
Singer
&
Co.
These would be powerfully stimulated
catches up.
shares are being sold for the ac¬ toward becoming the world fi¬
Gulf, Mobile & Ohio has had a count of a number of
non-control nancial center, as it already is the
particularly happy efficiency
leading industrial and commercial,
stockholders.

record

money.

terest cost is regarded in the same
manner

country in

that

Shea &

Texas

■

cheap

of

re¬ portance. But it is still true that
rather the heart of the problem is found

which restores convertibility to its

stock has been acting particularly
well when the rest of the market
was

thinking in

their

slant

tfc>n of gold payments usually

catching the
Ohio.

fear

clear cut and precise that resump-

One of the stocks that has been

&

to

redeemable in gold.

bright.
eye of quite a few
analysts is Gulf, Mobile

need

we

gold reserves from foreign

other instruments which would be

quite

railroad

do

our

holders

actions.

dividend

All in all, the picture seems

to

direction

willingness the.

sacrifice the interests of these They
usually
rationalize
this
important and essential groups to weakness on ^their part by expa¬
a noisy minority of self-seekers.
tiating on tlie benefit of cheap
money to the wealth and growth
Restore Honest Money
of the nation's productive econ¬
Both the Treasury and the Fed¬ omy. Most persons with business
eral Reserve should take the lead experience would agree that in¬

Nor

in turn,
possibility of

distinct

government ficials

its

to

on

This,

shortly.
the

a

shown

standard.

a

reasonable rate increase is forth¬

coming

with

so,

has

James E. Lynch Now
With Shea & Company

1952 may well top

results,

which

its
addition, for the
future, the company should get a in
urging Congress to restore hon¬
considerable
volume
of
new
est money. We have heard enough
traffic from the import movement
about "sound money," "managed
of iron ore through the port of
money" and other devices for im¬
Mobile. Finally, exploitation of a
pairing the accumulated wealth
large new salt dome in the serv¬ of the American people, of violat¬
ice area is resulting in an impor¬
ing long-range contracts by grant¬
tant expansion of the chemical in¬
ing special favors to the debtor at
dustry along the company's lines. the expense of the creditor, and
These new traffic sources augur
by bringing into question longwell for the road's future tonnage
range capital commitments which
and revenues, added, as they will are essential if our
economy is to
be,
to
natural
growth of the be dynamic.
South.
Adequate
gold
exists in the
United States to bring about con¬
vertibility at once. Safe operating
ratios of gold in relation to claims
against reserves are well known,
and current gold reserves are far
in excess of those which proved
to
be
entirely adequate during
long periods of time in this coun¬
try when no one would have
thought of questioning the per¬
manency and validity of the gold
full

is

credit

the properly

pects to be highly favorable. The
company

prepared to advocate. And cer¬
tainly
ill - advised
issuance
of

factor

consider

limit

no

the

to

quantity or' quality
of credit which government was

The Central Bank

->

There seemed to be

either

the^alternative of

running to a government agency
and obtaining fundi:'which either

close to

are

the business stream but should not
constitute

active

an

of

part

it,

those

institutions, when soundly
managed, are in a semi-detached
position to recognize excesses and
excrescences,
and they have the
duty of taking the leadership in
preventing serious damage from
these situations.
matical

made of. the

of

While

determination

no

mathe¬

can

be

quantity and quality

credit which should

be

issued

other
lending institutions, it is not too
difficult for the public at large to
recognize symptoms, of an un¬
by

commercial

healthy boom.
bank

should

banks

and

Then the central
both

possess

and

utilize instruments in the national
interest

against those various in¬
corporations which

dividuals and
may

be

sonable

using credit in unrea¬
fashion.. Historically the

interest rate

of the central bank

has proved to be highly effective
in restricting unwholesome use of

credit.
Open market operations
can also be effectively employed*
regulations of th^ government
itself, as applied to ^private credit A less favorable conclusion is
agencies, have fourid to be un¬ necessary for attempts to utilize

the*, discretion of crfedit managers
or

warranted.

|

In my own

of

a

central

problems
pressure

changes

in the reserves of com¬

expedience as head, mercial banks, and proposals for
principal
forcing banks to freeze portions
t% circumvent

bank? my

were

by government for credit

of

their

resources

in unmarket-

Volume

able

175

Number 5106

bonds

government

.

.

.

must

The Commercial and Financial Chronicle

be

rejected altogether.

.

Conclusion
As

<

Stock Offered at $15

suggested earlier, the inter¬

C.

est rate has proved to be a power¬
ful weapon in preventing a boom,

York,

And if booms

are

prevented, I have little fear of
depressions.. They are always a
result of previous errors, usually
undue credit expansion or irre¬
sponsible
action
in
connection
with

If

public

debts
in

excesses

three

any

sectors

nounced and

currencies.

or

of

these

been

pro¬

one

have,

on

Unterberg & Co., New
April 7 underwriting an

will be added to the company's amounted
to
$3,900,809 against
general funds, principally for use $2,481,813 in
1950, while profit
as
working capital, although a after taxes was reported at
$73,part may be applied to the pur¬ 271 for 1951 against
$60,996 in
chase
of
machinery and equip¬ 1950.

Proceeds

from

the

stock

Harry Marks Opens
MONTGOMERY, Ala.

ment.

sale

For 1951 sales and other income

to

The

Financial

Fenner

CHICAGO, 111. —Arthur C.

Gorman,

South

La

Peck

Salle

& Beane.

C

Chronicle)

Joins Davies Staff

Keene has become affiliated with

Link,

probably
subsequent punishment.
restrictive action

&

Street.

(Special

Co.,

208

He

was

to

The

Financial

bank

might

L.

Brown

formerly with Cruttenden & Co.

He

and Bache & Co.

& Co.

was

is

with

new

of

previously

with

While'

conceivably

products,
technologies
productive capacity, it

processes,

and

new

would

be

new

new

difficult to

cite

BRIDGEPORT BRASS

serious

examples in practical experience.
On the contrary, economic history
teems with the record of excessive
and ill-advised expansion of cred¬
In that direction lies the prin¬

it.

cipal danger, and to prevent
cessive
real

credit

a

responsibility. At this point it
properly be noted that gov-;

may

ernment

been

the

ex¬

has

government

credit,

institutions

have

long list of credit crimes.

fact

reports for 1951

the worst sinners in

among

is

government

not

a

In

proper

of credit for business pur¬

source

since

poses,

it

has

funds

no

ex¬

FACTS AT A GLANCE

cept those which it derives from
themselves

savers

since

and

gov-

•

ernmental methods and
are

and

from
tions.
a

should

those

of

objectives
quite different

be

business

segment

cumstances

should exercise
rather

than

active

the private
ordinary cir-

the
mere

take

Soles

.

•

of

economy, and under

the

•

i

«

,•

Profit before federal taxes

government

police

on

•

•'

$101,711,000

$ 91,864,000

10,706,000

8,069,000

of

BRASS

Brass and

Federal income &

an

excess

profits taxes

7,400,000

Brass Rod

Net income after taxes

;Government
can, do
little,
whether in the role of the treas¬
itself or in that of a central
bank, in shortening in time or al¬

.

.1

.

$

.

3,306,000

$

3,969,000

Duronze Rod

ury

leviating in degree the results of
boom

a

hand.

which

Unwise

needed

other

gotten out
of

use

industrial
have

errors

by the
are

has

be

as

Copper and Brass Tube

,

dividends

of

1,466,000

.

Retained in the business

and

•

«

•i

•!

1,840,000

•

by

Brass

Net

Income

•

.

$

•

the

3,306,000

$

individual-enterprise

economy.

Cheap money,

new

credit institu¬

tions

and

like

are

more

harm than good.

the

apt to do
In particu¬

lar, issuance of government credit
for

uneconomic

purposes

Copper Tubing

Earnings

per

Common Share

Dividends per Common Share

.

•

$ 3.45

.<

'•!

>1

$ 1.50

money,
moderate
reasonable
public

8,312

•

credit

free

a

institutions

to

healthy
ment

be

essential

act

currency,

It

can

refrain

it

and

credit

a

in

a

of
better

$22.69

Good-aire

Contract Parts

MILLIONS $

DOLLARS

a

govern¬

of

intervene

only in
Beyond that

shown

of

sensible

realm

the

area

segment

$24.64

•

a

tax

viable public debt.
from assuming ju¬

should

cesses.

Common Share

in

establish and maintain

structure and

risdiction

parts

Only

economy.

can

reliable

Book value per

and

responsible fashion is that experi¬
ence has amply proved all of these
factors

7,800

prices

market

which

Tubular Plumbing Goods

con¬

taxes,

debts,

established in

PRODUCTS

$ 1.00

Aer-a-sol Insecticide

integrated lesson of

vertible

MANUFACTURED

Automobile Tire Valves

Total number of Common Stockholders

creates.
So the

$ 4.14

un¬

doubtedly prevents more invest¬
ment ' and
employment than
it

Tubing

3,969,000

growth factor which is inherent in
an

Plumbing

Condenser Tubes

2,962,000

absorbed

overcome

for

1,007,000

un-

capacity
to

Brass Wire

Distributed to stockholders

and their effects

economy,

gradually

credit,

Copper Strip

4,100,000

\

'

MILL

PRODUCTS

income

power

role

participant.

1950

organiza¬

Hence the credit function is

proper

What We Make

1951

case

prices,
in

the

of

ex¬

the

private
has
performance than

the

economy

when government has taken juris-;
diction. Let us hope that the clear

lessons of the past, in this and in
other
way

countries, will- point
for a future with more

the
sus¬

tained

prosperity .and fewer de¬
pressions, with a greater portion

1940

1941

1942 1943

1944 1945

1946 1947 1948 1949 1950 1951

1940 1941

SALES AND TOTAL ASSETS

of the national income left for the

1942 1943 1944 1945

1946 1947

1948 1949 1950

BOOK VALUE COMMON STOCK

enjoyment of those who produce
it, and

a

research,
We
our

in

a

can

saving
more

and

investment.

confidently

hope in such

a

program

money,

unworkable

prices,

exchange

debts

controls

over

and

nomic activities.




BRASS

COMPANY

than

illimitable

rates

BRIDGEPORT

place

structure composed of incon¬

vertible
and

climate which stimulates

eco¬

&

BRIDGEPORT, CONNECTICUT

1951

—

Davies

prevent desirable expansion in the

development

Chronicle)

LONG BEACH, Calif.

the part of a

on

Harry

Security Building. He was former¬
ly with Merrill Lynch, Pierce,

Keene With Link, Gorman
(Special

—

Marks is engaging in a securities
business from offices in the Farm

long continued, there
no way of avoiding

is

central

E.

27

(1515)

'Marquardt Aircraft Co., incor¬
offering of 20,000 shares of $1 par
porated in California in Novem¬
capital stock of Marquardt Air¬ ber
1944, is primarily engaged in
craft Co. of Van
Nuys, Calif., of the
research,
development
and
which 2,000 shares have been al¬
fabrication
of
Ramjet
engines,
located for offering to
employees Pulse jet engines, and
engine
pow¬
of the company. The
offering was er controls, as well as
accessory
oversubscribed.
The price of the
power
plants
for missiles
and
stock to the public was
$15 per
other applications.
share and to the
employees, $14.

when applied in timely and cour¬
ageous fashion.

Marquardt Aircraft

9

Stuart
&

Co.

Morgan

28

The Commercial and Financial Chronicle

(1516)

Thursday, April 10,

.

1952

it

the

13

Continued from page

old.

packaging,

merchandising op¬

The

display

;

ing.

portunity is apparent.

Grocery

We Can Have Strong

Total

Defense

1

basic items that made up

60 years old is espe¬
cially important to the dairy in¬
dustry, for older people are now
being told to drink a lot of milk
and eat lots of milk products. /

lag in changes in the standard of
living.
Families do not change
tfceir housing, move to a better
tfjeighborhood, change their social
habits or improve their educa¬
tional level or improve their diet

Families Will Grow in Size—
A Reversal of

Trend

American fam¬
immediately
with increases in ilies decreased in size. Now there
income.
Recognition of this fact are indications that this trend is
in merchandising plans can result reversing because of the greater
in selling
and advertising per¬ number of children per family.
forming

important educational

an

function

For many years

continued at
earlier predic¬

The birth rate has

climb of

this upward

in

a

above

level far

population experts. It is
The
importance to the dairy estimated that births in 1951 ap¬
industry of these major shifts in proximated 4,000,000 for the first
income distribution of families can time in United States history.
best be appreciated by studying
The increase in the birth rate is
the
Department
of Agriculture attributable only in part to the
analysis of how prewar per capita increase in marriages. In fact, the
consumption
of dairy
products number of marriages may be ex¬
varied by income groups.
These pected to decline considerably

living standards.

tions by

stores

sales

of

products

many

formerly sold principally through
drug stores—to the extent that on
many of these brands the grocery

The 12-year

persons over

the fam¬

ily's former standard of living.
Ordinarily, however, there is a

their

,

More Urban-

;

Higher Living Standard!

With

Growing

Population Is

Rapidly—And Becoming

and advertis¬ change from 1940 to 1952, in some
of the basic market measurements
' < . ,can
influence 1 merchan¬
are
expanding which
dising plans.
Opportunity, for More
Is Good

Unit Sales

•

,

;

„

growth (1940-1952)
Substantial expansion in con¬
stores now represent from onein our population of over 25 mil¬
half to two-thirds of total sales. sumption of dairy products is defi¬
lion
persons
represents a new
Ice
cream .distribution
has
ex¬
nitely possible.
The present eco¬
market greater than Canada and
nomic conditions of high employ-~
Australia combined.
Every month panded rapidly in grocery stores
ment- and
since World War II.
purchasing
power
is'
<
the added population is equivalent
Dairy products should expe¬ favorable to improved standards
to another Omaha, Nebraska, or
rience increased sales opportunity of living and improved diet.
to a Peoria, Illinois, and Canton,
from
the
trend
to
self-service Basic changes in population, num¬
Ohio, combined, or to an Erie,
where the consumer has frequent ber of children, family formation,
Pa., and Wilmington, Del., com¬
chance for inspection and selec¬ education, home equipment and
bined.
.■
'•
consumer buying habits all offer
tion.
Our population is becoming in¬
favorable opportunities for sales
creasingly urban with 57% of the Basic Market Developments Over
expansion of dairy products.
total population concentrated
12-Year Period
in
Merchandising which recognizes
162 Metropolitan Markets in 1950
Our attention to current day-to- these important trends can accel¬
—all of the increase in population
day fluctuations of business some¬ erate the advance in living stand¬
,

since

1940

has

the

in

been

non-

times obscures the facts

farm segment

which is dependent
almost entirely on purchased food.
of Adult

Educational Level

major

on

changes that have been taking
place in the character of markets.
Table III summarizes the 12-year

ards

and should

ular

brand

share of

an

insure

getting

partic¬

a

increased

an

expanding market.

Population Is Changing

Rapidly
As of

Continued

who have had

12

page

full high school

a

The Railroads Can Be Rescued

education is more than four times

great

as

from

1952, the number of adults

1930

in

as

and

75%

consumption during the next five years since greater even than in 1940.
A
aire shown graphically
ideas as they had into steam en¬ organizations that a million bondfor major the number of adolescents of 10- population
containing more than
products.
and
stockholders were partially
19 years who will supply most of 40,000,000 high school graduates gines, thus making it impossible
to mass produce
or to
improve or completely and unjustifiably
the marriageable couples of the is quite different from a popula¬
Significant Change in
models: a failing that has caused wiped out and the new stock dis¬
next
10 years is actually lower tion with 23,000,000 graduates, as
Age Groups
many
suppliers to regard their enfranchised; the boards captured
than in 1940.
A major factor in in
of

patterns

prewar

1940,

The high birth rate of the last

from

or

population with

a

railroad accounts with

disgust.
holding up the birth rate has been less than 5,000,000 graduates—a
the extension the
Do you need more to see why
change in attitude of young condition that existed shortly
span
have brought
This the
only
industry
which
was
couples toward having more than after World War I in 1920.
about very significant changes in
one or two children.
change can be an important in¬ guaranteed a fair rate of return
the age distribution of our popu¬
on
the
acceptance
of by Congress is the only one which
There has been a large increase, fluence
lation.
dietary claims or the desire for a has lacked the energy to get it—
for
example,
in
the
number
of
By July, 1952, it is estimated
The Penn¬
better standard of living—skilled even in boom times?
that
there
will
be
62%
more second, third and fourth children.
In 1951, the number of mothers merchandising can make this
a sylvania last year earned only
-children
under five than there
2.5% on its- capital, the Central
bearing a second child was 91% plus factor in developing sales.
were in 1940, and 45% more chil¬
2%. What is to happen to them
than in 1940, and the (Table III).
dren between the ages of five to greater
10 years as
of
the
life

nine.

ber

.''V-v;/'".

large increase in the num¬
children

of

be

can

major

10

under

expected

influence

to come

years

over

iag, school facilities. dotMng and
food products.
In

particular,

this

83%.

third

of

number

born

estimate

An

of

births

pieaaas

an

"expanded market

ahead

to

customers

these

persons

as

through adolescence

Over Half of Present Families Are

At

the
of

crease

other

39%

With this amount of

families

in

the

no

number of

product

will
or

change in

manufacturer

or

pro¬

that these

assume

can

families

an

take

brand

on

the

new
same

preferences

as

TABLE I
—Number of Births
Birth Order—

Second

Third

Fourth

Fifth

V

or

over__

Total

—
.

;■ ;

'

%

1951 Est.

Increase

905,000
613,000
333,000
193,000
494,000

1,330,000

47%

1,170,000
620,000

86

310,000

6i

570,000

15

2,538,000

4,000,000

1940

First

91

58%

TABLE II

-

Married couples

living together 1940

....

Additions—Marriages 1940-1951
Losses—Through death, divorce or separation
Estimated married couples living together as of
July 1, 1952

28,517,000
20,680,000
12,197,000

37,000,000

1940

1952 Est.

Increase

(Million)

(Million)

(Million)

%
*■

Increase

1952

158.3

25.8

19%

Adults with high

uvu

54%

umKj

i

ugioLi ctuuns

Real

(billion)

purchasing

power

:




73%

40%

60%

Homes—Now

of the last

When

Owners

Out

of

the

units equipped
refrigeration
grew
from 15.1 million to 35.1
million, or an increase of 132%.
dwelling

road
a

it is

fact

that

in

are

there

the

directors.

less

of

rail¬

cause,

it is

no

of

this

equipment

newer

Most of them

$4,000

worth

their share of total grocery

sales

in 1940 to 42% in 1951.

they represent only 3% of
outlets, the

the number of grocery

billion,

markets

super

volume
or over

of

have
an
$12 Vz

nearly

$800,000 per store.

crease

stalled

was

months,

Is

there

ored

any

hotels,

28.5

37.0

8.5

30%

28.9

44.0

15.1

52%

$75.7

$237.0

$161.3

213%

(dis¬

$132.0

$56.3

74%

stores

—

emphasizes

the

growing importance of creating
stronger consumer preference and
brand

$75.7

bank

of

in

an¬

that

Right

now

this

group

prosperous,

as

four times as

recognition.

premium

on

It

places

a

good and attractive

improving, standardizing and
introducing competition into the
purchase of all railway supplies.
The most careful steps should be
of

space

last

choice

Railroad Dollars

of

the

college

Down the Drain

';I4

the

railroads

saw

to

taken by this

ships, such as existed for genera¬
tions between all the railroads and
two

investment

banking

houses,

should be wiped out in all depart¬
ments.

Under the Competitive
in
:

1944

issues
less

Bidding

adopted by the Commission

Rule

bankers'

spreads on new

not

only shrunk to
but prices have

have

than

file

of

1%,

fited

it in

business

re¬

have bene¬
this choice
competition.
The

bankers,

too,

from opening up

influence in
16

Proving Ground'to
relation¬

that non-competitive

see

risen, resulting in a double bene¬
fit to the carriers.
The rank and

'

The most important

by experts who have never

been infected by railway thinking.
To it should be assigned the task

to reserve solid blocks of Pullman

the

27%
65%

influence

York

New

staffed

and individuals have been allowed

graduate is the railroad job?

9.6
9.8

its

great research organizations of the
motor
companies.,
It should ^be

corporations

service

44.5
25.0

twice

wonder that fav¬

banks,

in super markets and other self-

34.9

15.2

destructive

enough.

some¬

61%

35%

vote

seeks to improperly

times years.

16.6

76%

13.7

permanently

to

400,000 shares of Central? A New
York bank.
As if the dominant

of

44.0

17.5

53.0

right

think obtained as ; a
intervention the

that

their., railroad's,

27.4

40.6

39.3

you

of

own

each

56%

23.1

do

result

rich in cash, as it was when the
stock, eminent,
bonds
were
contains a deep, freeze .compart-1
originally recom¬
wealthy
and
worthy
citizens
mended to the public by pretty
ment or the homes have a separate
though they be. Only one in ten
much the same crowd.
frozen food cabinet.
can
really be called an owner.
Most of you, I think, agree with
This rapid change, in home re¬ It is bad enough to have nonme
about this backwardness
of
frigeration facilities is changing owners running
your
property,
our
railways.
But what to do
living habits, selection of foods but how much worse is it when
about it—that is a tough one.
and shopping habits.
It means nine-tenths of them have large
cold beverages, frozen juice con¬ financial interests in conflict with
Federation Makes Five
centrates and frozen desserts are yours; those who solicit the busi¬
Recommendations
always available in many homes. ness of airlines, say, or of truck¬
(1)
The
Federation urges that
It means that dairy products face ers. The shipper may have a con¬
stock options be given to the key
increased
competition
in
the flict only on rates, but those who
executives of each r.ai)road.r An ■
home, but it also opens increased cater to many businesses can have
amendment to the tax laws in 1951.
conflicts.
Is
there
any
opportunities for merchandising many
made this possible on a capital
ice cream, fresh milk and cheese. wonder that such boards have ac¬
gains basis.
So far, few railroads
cepted without protest 11 rate in¬
have taken advantage of this in¬
Change in Buying Habits—To
creases
since
1939
aggregating
centive to management.
Super Markets, Self-Service
only 67%, when wages and ma¬
and Chains
terials have increased more than
(2) There should be created an
Super markets have expanded twice that, and every rate in¬ Industry Proving Ground like the
Much

132%

39%

who

confiscate the
property of tens of thousands of
other industry
bond- and stock owners in a west¬
owners
among
ern
carrier though the road is

the

few

so

than

result

a

poverty, or

8.0

5.3

deprived that carrier of even one
And

New York Central director?

road, the New Haven, and manyothers,
had
not
already been

A,lmost Universal

20.0

19.0

Pennsylvania-Norfolk & Western,
this group is believed
to have
been responsible for the interven¬
tion before the Commission that

and

Executives

mechanical

with

the

up

war.

important coal carrier

an

sought constructive affiliation with
New York Central,
to compete
with their twin combination the

other

Whether
of

anemic

so

they have not yet made
wear

Between 1940 and 1952 the num¬
ber

are

35.1

54%

13.7

posable income in 1940 dol¬

lars)

27%

Yet they

22.3

11,9

Disposable personal income af¬
ter taxes

defense.
,

15.1

1.4

34.0

^Dwelling units with:

-

nage.

87.%

14.3

4.0

22.1

school educa-

—XXV XXI

.

weeks in advance, and then
The
trend
toward
consumer
cancel, sometimes causing trains
buying in self-service type stores to go out half or a third occupied
has been rapid in grocery outlets. though anxious travelers are re¬
Chain
stores which
represented peatedly turned away from fic¬
38% grocery sales in 1950 had titiously sold out windows; that
90% of their sales through self- ideal
machinery is thus estab¬
service type stores while inde¬ lished to protect airline patrons
pendents had 53% of their sales against bad weather, the railroad
in self-service.
Most of this shift to hold the bag in good weather.
to
self-service
has
taken
place Is there any wonder that able
since World War II.
operating executives are finally
This revolutionary trend in con¬ frustrated by these higher policies
sumer
buying—the concentration into, accepting the status quo; that

'

auuito

(est.)

senger

93%

7%

a
quarter of all pas¬
mileage, a sixth of all ton¬
They are the guts of our

represent

*

Mechanical Refrigeration in the

annual

2.6

vx

Graduates

13%;

15,383

(adjusted for

under-enumeration of
132.5

^

Non-

Graduates

1940

While

census

High School

...

from 19%

TABLE III

Total population

y

Create

The basic family unit is a mar¬
ried couple.
Of the estimated 37

in¬

extreme

1920

Newly Formed—Within 12 Years

ducer

into adulthood.

;

1930

cream

hold

Year—

1951

for
million married couples living to¬
and other dairy
gether in 1952, over half are the
products.
Merchandising
plans
result of marriages within the last
should cash in on this bulge in
12 years (Table II).
the number of children—and plan

milk, ice

% of Adult Population

in

by birth order as compared
with
1940
births
is
shown
in

These two railroads

in bad times?

increased

have a
Table I.
the years

to

special needs for fcous-

on

by their group.

as

,

This

old

well

to

yolume 175
W.

t

i

bond

,

Number 5106

Mri \

)'

selling

?>

'

"i

rj t

.

.

.

The Commercial and Financial Chronicle
*,)

iff.;,

racket, which over
the industry billions

the years cost

these

all.

A

the

all

clear at that time

was

tickets

sold

American

million.

The

bankers,
dominant in the Central, however,
with

their

associates

took

three

and

one-quarter points in spread
\o sell some of the $60 million of
bonds which the Central guaran¬
teed.

There

terminal

land

are

only

in

Is

degree.

(Special

LOS

staff

nual

453

of

it

the

The

Financial

been

Club, Lake Forest, on Fri¬
day, June 6. The following Gen¬
eral

to

the

Bateman, Eichler & Co.,
South Spring Street, members

the

Los

Angeles

Stock

Ex¬

change.

(Special

Brosio
staff

Committee

of

to

Hogle Adds

The

Financial

ANGELES,
has
J.

been

A.

Chronicle)

Calif. —Fred
added

Hogle

&

to

S.

has

been

ap¬

'

Robert B.
F.

Whittaker, Chairman,
Co.; Woodward

Moseley &

Burgert, Harris Trust & Savings
Bank, Ralph S. Longstaff, Rogers
&

J. A.

community in these monumental
terminals, the mortgages against
them, which makes it so difficult
to get their cancerous costs off the

111.—The 39th An¬
Day of the Club this
will again be held at Knoll-

wood

Chronicle)

added

Day

Field

ANGELES, Calif.—Sandra pointed:
has

Dinner—Richard

CHICAGO,

to

of

LOS

the

of

great

eager

Bateman, Eichler
to

Laibman

financial

embarrassment

are

Annual Field
year

With

many
other
unlike Cleve¬

situations

the

You,

public,

hazard¬

there

say nothing of train operation.
The annual deficit of the terminal

$10

America.

most

make that so.

»to
is

in

the

now

Baseball—Clarke J. Robertson,
Sills, Fairman & Harris, Inc.

Chicago Bond Club

American

the

lar

that

k

in

ous, can become the soundest dol¬

railroads,

could barely pay its operating cost,

>

advance

can

invested

land Terminal which cost $77 mil¬
lion to build back in the 'twenties,

1

few

dollar

of dollars, also led to many errors
such as New York Central's Cleve¬

..although it

(1517)

29

i •

to

Admit

Entertainment—Eugene Hotchkiss, Blunt Ellis & Simmons.

change membership of Lyman G,
Bloomingdale and will become a

Golf
Robert
Mason, Merrill
Lynch, Pierce, Fenner & Beane.

partner

Refreshments—H. Gerald Nord-

of the New York Stock

berg, Blair, Rollins & Co.; Inc.
SpeciaL-Linneus A. Lawrence,
Security Counsellors.
Indoor

Sports

—

Donald

Searles, Blyth & Co., Inc.
Investment—George R.
quist, Weeden & Co.
Distribution

pointed the following Committee

Borland & Co.

Edde

—

Republic

Chairmen:

(Special

E.

FRESNO,

Hays,

details

LOS

the

on

Calif.

,

Chronicle)''

Ernest

—

L.

With Curtis Lipton
(Special

Kidder, Peabody & Co.
Further

Financial

Building.

Voysey,

to

The

Financial

ANGELES,

Chronicle)

Calif —Murel

D.

Rhodes is with Curtis Lipton
Co., 338 South Western Avenue.

Field

Day will be announced later

The

Jr. is now connected
with Dean Witter & Co., Patterson

Stirling, Betts-

Trophies—Frank

to

Bergeron,

Company.

Tennis—Louis J.

Exchange.

Joins Dean Witter

K.

Wahl-

K.

April v17

on

in
Vernon
C.
Brotjwn,
Scheffmeyer & Co., 25 Broad
Street, Ney York City, members

—

Central

pany.

Lief

will
acquire the New York Stock- Ex¬

Co.,'507 Grew, The Northern Trust Com¬

West Sixth Street.

Robert

Harris. Upham & Co.

Tracy, Inc., Robert A. Podesta,

Arrangements—Edward D. Mc-

V. C. Brown

-

Kennedy,

Cruttenden & Co., Vice-Chairmen.
The General Chairman has ap¬

the

L.

on.

backs of the railroads?

(3) The Federation urges a
Railroad Unification Conference,

STANDARD OIL

staffed with experts, to realize the
benefits of consolidation looking
far

ahead

to

legal

and Subsidiaries

consolidation

into several great systems; other¬

wise,
? likely

government

to

ownership is
through bank¬

come

ter service.

The

industry

no

can

longer afford the delays that go
with 132 railroads, the duplica¬
tions, the waste, i Most of the
.'benefits of legal consolidation can
;be attained quickly through co-

■Operation.

Savings can indemnify
the mortgages, the

handsomely

^property and the

employees that

must be sacrificed.

One billion and 76 million dollars
expended since
January 1, 1946, by the Standard Oil Company (Indi¬
ana) and its subsidiaries on a long-range expansion
program coupled with maximum use of facilities dur¬
ing 1951 resulted in a new record in sales and earnings.
This is

a

for any

1941,

years

decade in its history.

many

doubled.

Comparing 1951 with
significant Company figures have more than

Net

production has increased 145%; pipeline

transportation 154%0;reftneryruns 67% ;volume ofproducts
sold

continuation of the trend which has made the

company's growth in the last ten

id:

3

Report New All-Time Highs

ruptcy or public demand for bet¬
•

»™'ANA>

for the industry

as a

of

Use

this

Federation.

It

is

not

limited to

railroads, but includes
'suppliers, shippers, labor, share¬
holders and the general public in
:

its

councils.

When

it

speaks

it

"truthfully speaks for the public
good; hence, it is far more likely
to be heard than is
railroads

of

combination

a

stamped

its

on

face

as a selfish interest.

(5) Last, there is the vital sub¬
ject of labor-management rela¬
tions.
It is idle
to argue who
Started the feud.

But in my role
of management I would not
deny

share

my

the

of

blame, and the

shame.

Labor and management,
their
mutual
distrust,
are
equally guilty of inviting State

by

'j

SALES IN 1951 TOTALED

$1,499,000,000 compared with $1,268,000,000 in 1950, highest previous year. Petroleum product
prices continued to average slightly below 1948 levels.

the end of 1951 were $1,801,000,000 com¬
pared with $1,640,000,000 for 1950, and represented an in¬
crease of 124% over 1941. This increase was due largely to
continued investment in facilities for production and for
manufacturing, transportation, and marketing.

TOTAL ASSETS at

The volume of product sales was up 10% over the
previous
year,

and almost

equipment

was

every piece of refinery and transportation
used to capacity.

NET EARNINGS FOR

1951 WERE $148,697,356 Or $9.71
per share
despite higher taxes which totaled $130,435,000 or $8.51
per share. Earnings were higher than in any previous year,
and compare with $123,581,477 or $8.09
per share in 1950,
and $102,668,228 or $6.72 per share in 1949.

EMPLOYEES

on

1951

numbered 49,740, or 3,000

Employee earnings and bene¬
before. The company's new

employee-stockholders to

over

24,000 this

year.

for 1951, as

More than half of this

the

OF

were
higher than ever
Savings and Stock Bonus Plan brought the number of

NUMBER

of the

availability of steel and other materials.

OF STOCKHOLDERS

totaled 116,800

on

No institutional stockholder owned

1951.

amount went for

production, mainly for buying leases and drilling wells.
Expenditures for 1952 are expected to be substantially
higher than during 1951, but will depend to a consider¬
able extent

END

fits

anticipated, showed a sharp
increase, totaling $183,064,000 as compared with $127,439,000 in 1950.

AT THE

than at the end of 1950.

more

.

CAPITAL EXPENDITURES

than manage¬

more

CONSOLIDATED

ment, for the chief victim of the
insatiable

Socialist

is

It

labor.

is

State

labor

stock, and

Dividends

were

Again this

year, as

no

individual owned

December 31,

so

so

much

much

as

as

4%

1%.

paid in 1951 for the 58th consecutive year.
in the past, re-investment of profits has

^increased the equity of stockholders' ownership.

always

Federation

would

like

to

railway labor at the top of the

see

heap in

As

long

as

a

full

19,927,173

15,192,867

$1,559,046,979

$1,318,183,136

Total income.

day's

for

labor-management

permanent

Federal income and

should

National

be

in

Interest

establish

pattern

a

that

Net earnings

they the State's.
'

•

1

Clearly, railroad executives
never

themselves become owners,
make for their shareholders
of

can

Often

money.

there

money to be made in
sick industry than in
well

one.

strike out

forces of

If
on

even

a

some

is

and
a

lot

more

improving
preserving

a

paths the

competition released by




6,102,700

6,898,072

6,034,002

5,521,793

$1,410,349,623

$1,194,601,659

$

$

148,697,356

82,370,000
127,400,000

$
$

64,620,000 :
134,700,000

$1,083,000,000
$70.88

duced, net, barrels.

94,990,000

78,130,000

71,100,000

Oil wells owned, net,
at the year end. .

9,043

8,724

8,440

1,106

945

807

187,600,000

168,700,000

150,000,000

548,000

499,500

472,300

$1,125,000,000

liquids,

pro¬

at the year

end

...

MANUFACTURING

Crude oil

run

at refin¬

eries, barrels......
,

$

34,436,449

$

■.

ity,

at

year

barrels per

30,563,032

end,

day.

.

.

MARKETING

paid in capital stock of

Total sales in dollars,

$1,499,000,000

$1,268,000,000

Bulk plants operated,
at the year end. . .

4,528

4,521

4,511

31,130

31,020

30,870

tion

at average

carrying

.

>

Retail outlets served,

were

at the year

10,563,892
■''

'

Total dividends paid.

Balance of earnings

retained

.>•

Earnings retained and invested in the
business at beginning of year........

$

45,000,341

$

$

103,697,015

$

-

41,206,971

owned, at
end, miles
traffic, million barrel miles..
Tanker and barge traffic, million barrel

82,374,506

.

.

16,180

15,440

15,400

140,600

129,200

117,100

99,510

102,400

97,590

*

miles
-

669,562,973

587,188,467

PEOPLE

Stockholders,
$

773,259,988*

$

669,562,973

*Inoluding $197,000,000 restricted by terms of debenture and bankloan agreements of subsidiary companies and about $37,300,000 of
earnings of pipeline subsidiaries segregated under provisions of
Consent Decree in Elkins Act suit.

.

Pipeline

10,643,939

Earnings retained and invested in the
business at end of year. ..;

.

the year

stock.
'

.

Pipelines

Standard Oil

•

end

TRANSPORTATION

equivalent to $1.7037 in
in 1950 per share
Company (Indiana)

1951 and $1.1353

■

$

—339,160 shares in 1951 and 165,325

on

■1'

$

183,100,000

$76.27

.

123,581,477

a

few will only
new

33,891,115

value—together with equalizing cash

best, like sheejf,
uniformly following false leaders.
They should follow the owners or

103,700,000

$

$1,166,000,000

payments in lieu of fractional shares.
Market values on dates of distribu¬

rise to their

$

Standard (Til Company (New Jersey)
shares in 1950

Soundest Dollar in America

.

Crude running capac-

(Indiana)—
Regular dividends paid wholly in cash
—$2.25 per share in 1951 and $2 in 1950
Extra dividends

$2,687*

PRODUCTION

Dividends paid by Standard Oil Company

The

$3,135*

Gas wells owned, net,

Total deductions

State should be their
servant, not
>■

54,129,000

38,731,649

...........

could

dirty linen!

33,999,917

91,703,000

$3,954*

$83.00

gas

government agencies)

paid.

and

wash the world's

35,849,657

45,000,000

Crude oil and natural

Minority stockholders' interest in net
earnings of subsidiaries

Labor

management
should
there
join hands and hearts, as equals,
to.' wash their own dirty linen.
Who knows, united, they might

profits taxes

1949

$1,170,000,000
102,670,000
$6.72
$
38,050,000

$1,272,000,000

to $205,883,340 in 1951 and
$183,196,467 in 1950 collected from

customers for

Labor-Man¬

carrier.

each

48,661,531

ing

a

agement Conference with its local

chapters

excess

1950

$1,318,000,000
123,580,000
$8.09
$
41,210,000

in

Capital expenditures.
Net worth, at the
year end.
Book value per share,
at the year end.

Other taxes (exclusive of taxes amount¬

co¬
•

There

Earnings retained

Depletion, amortization of drilling
and development costs, and loss on
retirements and abandonments.

vaca¬

FIGURES

♦Including $1,704, $1,135, and $0,687 as the market values onSeptember
14, 1951, December 11, 1950, and December 12, 1949, respectively, of
the dividends in capital stock of Standard Oil Company (New Jersey).

$1,011,500,231

51,122,254

$9.71
$

share.........T..

the business.....

Depreciation

as
efficiency increases. The
industry should set a world pat¬

i'<

$1,180,806,361

share
.

Depreciation, depletion, and amortiza¬
tion of properties—

tions

operation.

Net earnings
Net earnings per

$1,559,000,000
148,700,000

Dividends paid....
Dividends paid per

DEDUCT:

.

tern

Total income

1950

Dividends, interest, and other income..

Materials used, salaries and wages, op¬
erating and general expenses other
than those shown below

IN

1951
FINANCIAL

$1,302,990,269

government

longer

THE STORY

EXPENSES

1951

inflates, wages must go up; nor
do we deny the right of
everyone
to shorter weeks and

AND

$1,539,119,806

and hours.
Man¬
should cheerfully con¬

agement

INCOME

Sales and operating revenues..........

wages

cede that in return for
work.

OF

for the years 1951 and 1950

that

the most burdensome taxes.

The

STATEMENT

of Earnings Retained and Invested in the Business

fights
and ultimately

the planned wars,
pays

And Summary

O-

program.

Control which threatens to gobble
them both up.
Should that come,

labor will lose

-J

whole. They again

justify the vigorous and extensive expansion

(4) The railroads should give
jrftore support to and make greater

'

k ■:

76%; total assets 124%. Most of these gains exceed

the average

the most rapid

.* * ■

.

■>

year end
Employees,

at

the

.

vear

at

116,800

96,090

96,810

49,740

46,740

46,740

the

end.........

Copies of the 1951 Annual Report available on request as lone as the supply
lasts. Write Standard Oil Company, 910 S. Michigan Ave., Chicago SO, 1U.

>

K

•

The Commercial and Financial Chronicle

(1518)

30

then—has sickened most

Continued from first page

It

possible to relate this latter series of occur¬
rences to the determination of the President not to become
a candidate to succeed himself this year.
A number of
Now it is

people who readily condoned sitdown strikes, mass picket¬
ing and palpable "handouts" to all sorts of voters obvi¬
ously for political purposes.

suggestion

political commentators have come up with the
that the almost innumerable

ordinary citizens to their souls.
though, that the underlying

remembered,

philosophy, the basic attitudes which made all this pos¬
sible, if not inevitable, was for a long while found, if it
is not often found today, among the rank and file of the

We See It

As

be

must

"scandals" which have come

light have been or will be laid at the door of the Tru¬
man Administration, not the Democratic party.
The im¬

Real

political reform in Washington must begin in

the minds and souls of us all.

might
or

other steps which
their colleagues to public criticism

them

expose

or

fervently hope that the underlying premise of

this

type of reasoning is false. The change from one Demo¬
cratic President to another would not be likely to bring

organizational personnel and morale
real housecleaning — and a real
housecleaning is, in our humble judgment, very near the
top of the list of "musts." The public, or certainly the
more thoughtful elements among the people, can hardly
be expected to rally with any great enthusiasm to any
group or party which gives no real promise of replacing
corruption, and even treason, with ordinary everyday
integrity and faithfulness to duty.
in

revolution

that

that is essential to any

\

by whom he is surrounded
occasion been inclined to meet

The President and those

have

more

on

than

one

charges of reprehensible conduct and even corruption,
with the familiar tu quoque retort (or threat) of the poli¬
ticians. That is to say, the reply has been that the Presi¬
dent's tormentors in Congress have not themselves been
free of many of the transgressions charged against the
Administration, or members of it. There have on more
than one occasion been intimations that were the facts

carefully investigated, it might be found that even Re¬
publicans in Congress or in high places in the party had
not always been free of some of these infirmities.
This sort of argument

carries threats of exposing the
and is often quite effective in preventing the
public from learning what the facts really are. In the
particular case now under consideration, it may be said
that it would be surprising if members of Congress had
not been at times at least tarred with the same brush
exposer,

which
of

has

various

on

numerous

occasions marred the

appearance

individuals in the executive branch.

Continued from

,

that recent misbehavior has not
always been confined to the Democratic party. The fact
remains, however, and should never be lost to sight, that
it is the Democratic party which has had full control of
the country, or very nearly full control of it, almost con¬
tinuously for 20 years, and that no amount of dodging
and no amount of accusing others can possibly relieve it
of full responsibility for most of what has been taking
place in the national capital. It is to be hoped that those
who manage the affairs of the Republican party will see
to it that their party this year will be represented by can¬
made

no

odor of misdeed

attaches

or

can

be

to

attach, and that the organization of the party
itself will be carefully developed with the same purpose
This much must be done if the

in mind.

public is to have
opportunity to express itself upon these issues of com¬
mon
honesty, decency and loyalty to country.
Our Own Sins

aspect of this situation which, though it

is referred to with

for

one

moment.

deep regret, must not be overlooked

It is the fact that

no
government exists
country it is a living instru¬
ment of the people, and in the
longer run, inevitably and
always reflects the views, the sentiments, the attitude of
mind of the great rank and file of the people. Not only
or

functions in

vacuo.

In this

does it take at least two

people, one in government and
one
outside government, to make a sordid deal of the
sort that have graced the news columns of our
press at
intervals for years past, but when many such transactions
occur

there must be far

organization

than

non-governmental
individual involved and many more who
more

or
know about them and at the very

one

least condone them.

In recent months the

depth to which treason and just
plain, ordinary "graft" appear to have penetrated official¬
dom—a situation the like of which has not been in view

since

the

of

into

go

production, so as the chart
shows, production this year will
be lower than in the record-break¬

1950 and 1951.

ing years of

How¬

production is expected to re¬
main high compared with other
ever,

of extremely high output.

years

For example, Mr.
Director of Defense

Wilson, then
Mobilization,

'49.

Looking

the

at

matter

from the demand that has

already
been met, we see
that—during the
years 1940, '46, and '52—the con¬

holdings

sumer

of refrigerators,
cleaners, washing ma¬

vacuum

chines, television sets and passen¬
increased much more rap¬

ger cars

idly than the population. Since
this that was not in short supply. 1946 the increase in consumer dur¬
The
difficulty
is
not
a
shortage
country's mighty productive
ables has been especially marked,
strength. Industry also comes up of the supply of goods, buf an with approximately the same num¬
with jobs, new products and bet¬ oversupply of cheap dollars. There ber of
passenger cars in use as
ter
methods, taxes to
support are some specific items, especially there are families, nearly as
many
some of the metals going into dur¬
government, and the large pay¬
refrigerators, three- fourths as
rolls that support the incompar¬ able goods, though the situation
many washing machines, and with
able American way of living. And in regard to many of these has
practically every other family
And in¬
—this is • the thing we all stand become notably easier.
owning both vacuum cleaners and
dustry
believes
that
provision
or fall by—to do a job worthy of
stand

able to

ready and

use

Harding regime, and quite possibly not




even

still

should

the name, American

retained

be

for

allo¬

industry must
dynamic
driving cating materials required for de¬
fense orders. Despite all the hue
power.
and cry about shortages, what is
To make world war increasingly
there in such short supply that it
unattractive to aggressor nations,
industry must do much better in justifies weakening the American
five years; still better in 10. And people's economy with crippling
its

maintain

produce
from

even

in

more

than

now

we

30

years

now

are

other

as

been the

words, what has

impact of industry on mobilizing
this country's productive strength.
We

controls?
First

pro¬

compared with 30 years
ago—1923. Let us look at what
the
individual
companies
of
America have accomplished.
In
ducing

be proud

of

examine the

let's

pattern

during

spending

consumer

such recent record breaking years

and '50. Food took
share
of consumer

1948, '49
the
largest
as

Korea
to

had increased

we

two-thirds

nearly

could

be

capacity

than

more

produced at the begin¬

ning of the second world war.
Increased Industrial
Scare

the

In

Buying

of industrial
capacity has been

mobilization,
built by an

additional

centage points

on a

23

per¬

1939 base.

the

before

year

is

started

even

and pronounced.
of

Korean
war
widespread

more

The Department

Agriculture expects food

last

By

as

sup¬

abundant

as

with the possibility of

year,

record output.
As

for

need of

are

long way from

The evidence that
well

any

consumers are

supplied is further borne out

by the fact that the reduction in
output of consumer durables dur¬
ing the second half of 1951 by no
means let general supply fall be¬
low

demands. One rn^re
why over-all shortages are
anticipated is that, like the

consumer

not

ventories

The

holdings, business in¬
also abnormally high.

are

for both is well worth

reason

exploring.
But to

finish off the picture of

consumer

the

key

effect

durables, let
federal

of

us

look at

controls

on

materials, such as steel,
copper and
aluminum. Ther$ is
a great deal of evidence that such
raw

controls

effect.

have had
If

civilian
needs

they

goods,

can

be

unbalancing

an

taken off . of
and the defense

are

more

carefully

worked

out, the effect on employ¬
ment, costs, and supply, would. be
even more

favorable than the

rent estimate.

cur¬

Most of those who
so

because, of

shoes, far government "experts" who under¬
of shortages, estimate the supply of metals.. It

and

prospect

has

demand

consumer

a

replacement.

have lost jobs did

clothes

the

from

tremendous

unusually large number Of the

machines

consumer's

16%, housing almost 10%,
miscellaneous services 21.6%, and

The

ownership

of these
products since 1946 indicates that
an

about

a

two years

sets.

in

reason

plies to be at least

Capacity and

television

increase

spending, with clothing and shoes
around
10%, other nondurables

of the picture.
consumer durables below 14%.
I do not know of any productive
Let's look at the largest item—
record in human history that can
food.
Instead
of
shortages the
compare with it.
At the end of
World
War II America's manu¬ supply will be plentiful this year.
As you can see, the supply of such
facturing capacity was nearly oneitems as meat, eggs,
third greater than that of 1939. important
chickens
and
fresh
vegetables,
In total war, in peace, and since
milk and cream, has climbed since
Korea, industry has continued to
the '35-'39 years.
And for most
build
America's
productive
categories the increase since the
strength.
Six
months
before
can

not

been

sufficient to justify production at

is the old

story of the free market
being able to do a job that no big

peak capacity. The government bureaucrat has ever
building industry has succeeded in doing without disas¬
enormously active that it trous mistakes.
what we had when World War II
broke out. Since Korea, capacity has more than kept pace with the
No Need to Abandon Free Market
Between
is up
in every major industry. growth in population.
The world price trends for met¬
The latest estimates range from 1940 and 1950 there was a 23%
increased capacity of 12% in the increase in the number of new als do not indicate that the State
refining of petroleum to 65% in dwelling units in the country. But "planners" were justified in re¬
the population has increased by placing
America's free market.
transport equipment. Let us see
Rubber
is
another
material .on
only 13%.
how
the
American
consumer
which
The
figures
for
the
nation
as
a
they
guessed wrong and
stands as a result of this picture.
In many ways your own fam¬ whole, however, do not tell the bought wrong, at a cost of many
the end of 1952

pacity will be

industrial

our

more

ca¬

than double

anywhere

and

I

believe

Our

face

Our taxes
of

cost

living and

have

so

full story since—unlike

other con¬ hundreds of millions to the Amer¬
not be ican people. Today, some leaders
solutions in transported. The increase in dwell¬ in both government and business
have soared. ing units would not satisfy the seriously question whether over-

ily's
problems
and
industry's
problems are remarkably similar,
common.

near

residential

been

business

an

many

that

defense

and

page

Delay in Defense Output

an

There is

first

Industry Not Responsible lor

There

is reason, too, to suspect

didates to whom

materials

same

free

A False Premise

We

equipment require

the

1952 output of passenger cars
will equal the average for
'47, '48

to clean house or to take any

condemnation.

hold

Thursday, April 10, 1952

.

of

by the retirement of Mr. Truman himself. Upon such an
assumption one could readily see why the rank and file
of the Democratic organization should no longer feel it
necessary

.

estimated that in the first quarter

to

plication, if not the explicit conclusion, is that corruption
has been removed from the coming political campaigns

.

risen.

of

This

doing
is

de¬

cidedly
not because
of
higher
profits by business. The average

sumer

need

if

goods—houses

the

of

the

can

increased

increases

ferent

locations.

shows

that

in

population

occurred
But

dif¬

at

the

expansion of productive
may

chart fense

capacity

not actually weaken the de¬

effort—dislocating the

econ¬

of the omy through building supply, to
"regions" the increase the point that it is seriously out of
one

every

margin of profit on four census
take-home dollars, in housing has exceeded the in¬ line with ability to consume. Yet,
has declined. What about short¬ crease in population.
under the Defense Production Act,
These broad statistics undoubt¬ government is channeling an ad¬
ages?
We have both been sub¬
jected
to
blast
after
prophetic edly fail to show loc&I difficulties ditional flow of raw materials that

corporate

sales, like

our

blast

areas/ particularly

from Washington
on
the
subject of how bad shortages were
going to be, frightening our coun¬
try into the pattern of a con¬

in

trolled

widespread shortage of housing in

economy

that all big gov¬

ernments tend toward.

ings

The

warn¬

from

Washington were so
often repeated, that you
reasonably have expected

certain

where

new

been built.

plants

as

will

they give general what
there

will

affect

have supply
be

for miscellaneous

As

ices such

But

that

assurance

1952.

defense

no

serv¬

medical care, utilities,

the

and

anyone

balance

between

demand
can

far beyond
now foresee.*

This brings up another complete

misconception about economic

re¬

alities which every business con¬
cern
in this country must face.

laundry, beauty There is a certain type of mind in
shops, barber shops, etc., no scarce both big government and big labor
wojuld now be shortages of materials are involved, nor should organizations which insists that it
practically everything you want the mobilization program as it is the function of all manufac¬
to buy.
stands cause important manpower turers to go on producing to the

strong,

might

so

transportation,

there

As

a

result both

consumers

and

businesses joined in the scramble
not to be

caught short.

bid

on

sopn

up

the

Prices

were

assumption

that

limit

shortages in these services.
Durable
about half
consumer

there wouldn't be anything goods

as

goods
as

amount to

much

as

only

food in the

of capacity
over-supply
—

—

regardless

of

regardless - of
under-demand—and regardless of

budget. "Such durable accumulated inventory.
Under
automobiles and house¬ communist and socialist systems,

*Sir

Volume

175

Number 5106

.

.

r»>

KrmuWiMWV'W"' ' *■'»rfri'HiA4r

The Commercial and Financial Chronicle

.

(1519)
supply never even gets in sight of
demand.
The
consumer
never

preceding World War II.

catches up, and in any case

(17.2%), and our
parity was about half what it is

what he
he

eat

can

live

can

or

and

there

is told

where
and how

wear,

work,

;

As

yet people with considerable in¬

with

experience* in

no.

way

'39

pro¬

duce without regard to consump¬
tion.
The fact is that few busi-■

in

nesses are

for

our

demand,
to 2.7

war.

At

that

unemployment

in '42

and

to

of

dropped

less than

outbreak

of

in

war

will

there

largely been caught

up

with.

17%

of the labor force

evening.

admit

that

factors

are

ment

changing from

that controls

one

job to another.

of

—as

the

purchasing

already
of

power

this

picture
difference

of

plant which has already
doubled 1939's industrial

capacity,

lationary

had

in

nearly

Government deficits and other in-

policies

I believe you

in

which
economic
planners
must
have known but disregarded. Con¬
sidering the. tremendous invest¬

unemployed, less than 5%
were unemployed and these were
mostly' those who are normally

shrunk

1%

until this

had

being

even

rate

the

Instead of

allies,

war

and

Korea, that vast civilian demand
Our economy in June of 1950 bore
little resemblance to that of 1939:

began to fill

future

level, before this country

entered the

position to finance

a

II

England and France, the physical
volume of industrial goods pro¬
duced jumped 62% above the '35-

business,

lay down the dogma that the
to regulate high prices is to

1939

unemployed
productive car

manufacturers

orders

American policies, but

on

In

9.5 million

today.

little he must work for.

fluence

were

big

government's
over

civilian goods
Mark

heard the

are

Twain

rumor

story
production

the

necessary is
when he

said

that he

dead

was

the

dollar to less than what 60
—greatly
exaggerated.
That
is
inventory. of the record high labor force in cents would have bought in '39.
putting it as mildly as I know
perishable. In many '44. With average weekly earn¬ Since 1939 we had
opened up jobs how.
lines, changing styles and con¬ ings for such vastly expanded em¬ for 14.2 million more
people. And
sumer preferences completely de¬
ployment almost doubling in five in
False Forecasts of
manufacturing average weekly
Shortages
stroy the value of goods produced years, we spent every dollar that earnings were up from
$23.86 to
too long in advance. And in
Actually, no other factor ex¬
any could be spent, and strained the $59.33, with 48% more
people on cept our
government's inflationary
ease the financing and
storage of economy at every seam. The re¬
manufacturers' payrolls.
deficit spending more
directly
goods over a protracted period in¬
sulting
pent-up
demand was un¬
All
this
despite the fact that our caused high prices than the gov¬
creases costs rather than
lowering
precedented.
them.
population has increased only 20% ernment's own false forecasts that

great stocks

Some lines

I

know

says:

"I

with

a

of unsold

are

man

out

about

to

a

am

warehouse

ages!"

(Which

West

full

who

..

Between the

end of World War

from

the

census

of

April

1, 1940

broke—

go

of

short¬

customers

won't

Let's check the
price trend by this
picture.
The
rise
of
consumer
prices since Korea has

lagged well
behind wholesale prices.
And the
wholesale price level turned
down¬
ward

a year
ago.
In such lines as
textiles and
tile products we

have

wasters,

ers,

cronies

or

and

capacity,

it

has cut shoe
production
than one-fourth. To
account
for this let's examine
the essential
factor of demand
more

bilization period.

There is a government all of us
know which has 70 million pounds
of dried

It

has

with

refrigeration.
literally brimming

determining influences in
this picture are
monkey business
the economy

into their own pock¬
ets.
Following the outbreak in
Korea, consumers took their cue

goods would be extremely scarce.

Continued

eggs

to

cents

a

REPORTS ON ITS ACTIVITIES

dried eggs. Yet while
this government—our government
—sold 32 million pounds of dried
'

Britain at from

15

30

to

FOR 1951

pound, to get rid of them,

government contracts

were placed
to buy nearly five
million additional pounds of dried
eggs at about $1.40 a pound.

by the

army

During
when

and

labor

high, production must take its

cue

from consumption.

competition,

from

ASSETS

up

Cash and marketable securities

increase

and

Receivables

the degree of unemployment that

....

Inventories

In

appeared'in some
Tree market the major

a

natural forces work toward
between

ance

and the
;

(net)

$

already

areas.

Total current assets

bal¬

a

Special deposits

productivity rises, the consumer's

equipment (net)
Other

also rises. When

centralized government's planners
take

however—all

over,

off.

bets

$

1951

202,356,405

162,768,111

116,544,175

153,486,785

142,386,348

.

$

601,294,652

$

Current liabilities

Long-term debt

461,286,928

17,428,524

18,137,899

100,068,151

148,673,094

....

.

receivables (net)
Properties, plant and

supply of goods for sale.

power

285,039,756

assets

•'

;

.

.

.

...

.

780,686,100

.

.

12,141,481

11,536,398
$1 ,344,357,584

185,023,669

185,301,460

42,073,149

■1

1

29,408,826

■'

*

Capital shares (22,690,500 in

Earned

surplus

.

.

.

.

.

.

.

.

.

Total Liabilities

are

.

■

"

#

567,262,500

.

.

205,659,417

16,873.867

.

1951; 11,345,250 in 1950)

1950

$

275,569,862

.

•

704,723,265

$1 ,511,618,908

......

Total Assets

.

$

.......

Capital surplus
...

....

Long-term unadjusted credit

Investments and long-term

demand

consumer

1950

Reserves

Prices shift up and down but, as

purchasing

LIABILITIES
1951

cheaply

produced products, could close

has

SHEET, December 31

Otherwise

more

over-producer,

BALANCE

costs

are

the

CONSOLIDATED

time like the present,

a

materials

25,658,848
"

283,631,250

—0—

73,190,861

424,815,861

541,506.922

$1,511,618,908

$1,344,357,584

To

justify the controls they
wanted, the voices of big govern¬
ment

repeatedly croaked that the

shortages
Don't

were

think

to

suTe

-

that

get

consumers

CONSOLIDATED

us.

INCOME

were

STATEMENT

the only ones who rushed to stock

up

time

every

forecasts'
banks

from

Of: the. Potomac.:

.

stocked

too. -Such

uPj

V951

Net sales and other

the

Business

a

up

prices,

up

they went.

-

operating and general
Provision for plant exhaustion
Interest

Total

tives

and

administering;

depend
back/room for

on

Special credit (net of tax)
Net

of

information

spending,

planning and
pensive

more

do our own.

ners

5,238,575

20,065,130

$1,208,859,415

$

982,553,225

$

$

174,597,696

$

109,800,935

$

111,139,605

239,152,468

$

135,194,410

$

140,070,932

64,796,761

1,338,670

A limited number of

HIGHLIGHTS

Daily

•

thinking, let's

misunderstood,

disregarded

distorted in the interest of

more

The economic

operating since Korea

significantly different

from




are

those

.

Daily average barrels ........
Refined products sold—Total barrels

Ex¬

great deal safer to

government power.
factors

5,039,739
20,174,151

4,876,522

....

Daily average barrels
Crude oil processed at refineries—Total barrels

taught

look at
theJ facts that the
backroom plan¬

or

847,593,863

109,655,657

,

-fir *

f~ i

average

barrels

231,168,000

copies of

Gulf's 1951 Anuual Report are
1950

available upon request to P. O.

Box

sleeves than they have ire the
way
o£. remotely*, reliable advance-in¬

-

.

1951

by now, that when the
planners plant the shortage rumor,
they have much more up their

a

.

.......

Income

Net crude oil produced—Total barrels

centralized

controls.

more

1

137,018,065

103,958,058

OPERATING

most of us

Since it is

$

and

experience has

formal ion.

$1,046,627,460

They

their

thing about such mistakes is that
they always favor more govern¬
ment

.

the boys in the

most

de¬
analysis,
As it happened-, the planners made
a
mistake, and the one certain
tailed

special credit

Income Before Special Credit

necessarily the front office people.
Jhe front office crew keep pretty,
busy issuing statements and diree-;

.

expenses

Provision for income taxes

The

planning
big government are; not

have to

.

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

ment

up.

.

Employees pension, savings and incentive plans

Income before income taxes and

thought

expenses

>

this-because-of what the
bureaucratic brains in big govern¬
brains, in

$1,157,150,921

'(including dry holes and incomplete wildcat wells)

/.• All
-

$1,448,011,883
«

Costs of sales,

.

/ Bureaucratic Big Government

revenues

Expenses:

double-

barreled stocking up has been sel¬
dom seem and with everyone bid¬

ding

1950

those, impressive

boomed.forth

177.691,000

633,337

486,824

182,847.000

171,999,000

500,951

471,230

....

191,026,000

172,615,000

........

523,359

472,917

mo¬

—repeated misguidance from the
people who want to maneuver

eggs under
caves

over

during the

The

GULF OIL CORPORATION

-

tex^

that-

from facing shortages—lack of
demand has cut production
more
than 20% below
peak

the

on

seen

far

buy.) Of course it would be diffi¬
cult to get these simple facts across
to confirmed government spend¬
mink coat fringe—all in positions
of public trust.

31

1166, Pittsburgh 20, Pa.

on

page 32

"

32

The Commercial and Financial Chronicle

schedule on new planes calls for
general under-supply, try's strength are still at hand. It
two more DC-6B's and 13 Con-,
under-demand; is up to every good citizen to help
restore them to use by govern¬ vairs. Available seat miles capa¬
(3) More civilian Federal em¬
ment.
The long-term outlook is city could
increase by another
ployees,
controls, DPA, waste,

but in many lines

Industry Not Responsible (or

corruption and the scare buying
technique of big government are
not the ways to sound economic

Delay in Defense Output

;

i

essential for

staying power that is
our

defense.

is well ahead in its plant expanernment— an unbalance between
sion program, but the trend of
Some
,3care buying
ran
so
high that orders on which we are author- production and demand.
business
inventories were tem- ized to roll into production has agencies of government have done
repeated insistwould be scarce,

that goods

ence

and consumer inclined toward those on a deBusiness built velopment and exploratory basis.
*ip
its inventories to meet such No
sound military executive
-demand and found itself ahead of wants to weaken America s
®"
demand in the next quarter. Then fense potential by
overstocking
porarily depleted,
Loldings piled up.

that followed
Bed China's entrance in Korea set
another but smaller advance

planes, ships, taPks> ^
ammunition which changediconditions and the pace of techn

buying wave, because consumers
*can store only so much.
Business
inventories dropped correspond-

development might q u l c k 1 y
render obsolete a haza .
American defense and soldiers
lives.

the

buying

scare

for
the 450,000,000 miles. Under our as¬
prosperity, sumptions, $1.42 per common share
progress, leadership, and national from this new equipment can be
projected. Beyond 1953 there are
greatness.
additional
The way to strengthen Ameri¬ no
planes
scheduled
American

trols

stores

deficit

To

see

con¬

be

goods

to it that gov¬

To guard the soundness
people's currency.

of the American

should be

would become worse in
hands
of those whose re¬

that they

ings.

to

the

by another 100,000,000 seat

of

cents

30

about

per

common

share.

Hence, the longer term
projection indicates possible earn¬
ings of about $6.14 per common
share of United's
World

Trans
on

stock.

common

Airlines, Inc. has

order 40 Martin 4-0-4's and

10

responsibilities and Super Constellations 1049's, which
maintain them, to

to

revenue

capacity could in¬

Mileage

miles which would yield earnings

bring central government
manageable size by bringing

back both the

delivery/but utilization on a

crease

And to

to, but we may be sure

attended

full-year basis of all new plane3
could add to capacity and earn¬

integrity in office. To stop
financing and keep gov¬

basis.

go

power

knocks in the economy

for

the

ernment spending on a pay-as-we-

big

vast

the

for

ernment eliminates waste, and re¬

the

government's already
over people becomes
completely overpowering. Engine
fore

out

civilian

over

abandoned.

now up

balance

power

ahead is: To insist that

years

to every good citizen to
supply of govern¬
ment with reasonable demand be¬
is

bring

required

and

defense

can

staying

people. It

their best to unbalance

favorable
people's

extremely

big gov¬

of

is—because

There

from Washington's

>

Thursday, April 10, 1952

.

(2) Not

31

Continued from page

'

.

.

(1520)

may be placed in service in 1952.
to the local gov¬ In the same year, 12 leased Mar¬
iogly and then hit a new high as
demand caused the trouble.
ernments, and to the state govern¬ tin 2-0-2A's will be returned to
demand slacked off.
Since then
No businessman wants his wareThe damage that has been done ments which can best do the job. the
manufacturer.
Details
of
demand has leveled off. Business houses filled and his bank account
These are matters
which
re¬
TWA's
equipment program be¬
by government planners and con¬
inventories remain up at a time emptied by vast quantities of fintrollers must not be used as an quire greatness of understanding yond these dates are not avail¬
when consumer holdings are ex- ished merchandise which may not
and greatness of citizenship. The able. These planes could add over
excuse to bolster up their author¬
tremely high.
be at all what meets the consumity to put American freedom in understanding is being achieved. 1,500,000,000 available seat miles
The forecast shortages just didn't er's wants and needs when he is mothballs and
progress in cold The greatness of devotion to our on an annual basis, as compared
materialize. The soothsaying from r?ady to
n^nn»o storage for generations to come. country by its citizens was never with about 2,575,000,000 available
the banks of the Potomac did ac- situation strengtnen our nation s The basic
seat miles flown in 1951.
principles of our coun¬ lacking.
complish several entirely undesir- ?con?imlc1n^" n?d?' ahead
T h e
With this
additional
At

howpvpr

when

time

a

needs to be

economy

our

2l Ularg%n^oringyheneffdecI
employment,

of such unbalance on

ttCXncfng P0W6r' 3

ni"

War, in June of 1950, and

Korean

last December, our

Federal Gov-

•ernment has added a total of

Stabilization

ploys

16,401,
have

this

is

About
lion

of

lack

for

not

a

513.
But

staffs.

smaller

year ago

the Administra-

28

from

proposed

trying,

to

-amendments

to the Defense

duction

which,

Act

would have been the

30

Pro-

if approved,
longest sin-

such

inflationary devices,

its

used

credit,

easy

as

0n

boom,

However

no

Jurers

doubts

can

people

-

of big gov-

the nature

no

of

Manufac-

this

that

country

and muS£ maintain prepareddefend

to

ness

national

our

sov-

be
control- done for as long as the defense
long as period takes—10—20 or even 30
next fiscal years jnt0 the future. To do this,
This

ereignty.

and must

can

and

planners

s

are

member of the Na-

4*le step toward complete govern-

in

these

that

so

■*pent
control over the lives of the
American
is

pegs

longer in reserve,
Association

It

price

and loan guarantees to pile boom

tional

ernment

Government

Federal

The

(3)
has

em¬

competitive markets.

Defense ployment in

the

and

durJ,nS which the economic

costs could tend to reduce

lers to keep expanding as

they

exist.

For

the

?ear
n1S PraP°sed
the De- productiVe freedom must be refense Production Administration
stored

*pend nearly one-third more and
that
the
Economic
Stabilizing

increased
from $92.6 million to nearly $150
million, an increase of well over

Agency's

budget

be

bilizing"

agencies

the

as

Wage

Stabilization Board have acted
At

their

function

to

were

as

stimu-

the

constructive

most

Bl^ government should not encircle and contain American in-

fus^ry; Yet government has all
?

V

,

ba?kb™e
objective.

a(;ted as ^ that catas-

freedom and to the
defense were its

In August of 1950, an editorial
in the New York "Journal-Amer-

l»ought either for consumption or

ican" commented that at the end
of World War II Premier Stalin
himself testified that the indus-

«ational defense.

trial

3ate wages, which are
factor in the price of

the biggest
everything

capacities

in

the

7

page

areas

duplicated routes

or

1945 and the end
of 1948. For the same periods, the
between

134%

international service jumped
and

the

daily

creased

57%. The number of sta¬

has

served

tions

in¬

services

all

in

flown

miles

important

an

airline profits. There
have been a very sharp per¬

bearing
must

on

centage increase in airline stations
When you

between 1945 and 1948.
add

to

the

considerations

these

United

travel

airline

that

American industry is left free to

continue to do this vital job."

weapons—the

guns,

tanks,

Individual Airline

on

$1,200,000. In addition, the
plans
to
inaugurate
tourist flights to Europe on May 1
at the rate of one per day each

Earnings
Some of you may be
in

details

the

interested

of

back

the

pro¬

share
earnings which I
have
previously given for six
companies in Table I.

jected

American

Airlines,

have

new

not

Does

Inc.

plane sched¬
uled for delivery in 1952, but will
any

utilization

full

have

delivered

DC-6B's

of

17

new

during

1951.

in those

smaller, that the growth in freight
was
only starting and

ating

actually declined in

mum

revenues

mail

revenues

1946
a

and

I

1947,

believe we get

picture that is considerably dif¬
than today. Another point

earnings

might amount to
which, after a maxi¬

$4,225,000
70%

tax

would

amount

about 20 cents per common

Inasmuch

ings

American's net

as

for

taxes

after

to

share.
earn¬

1951

were

share, it would
project earn¬
domestic trunk lines shot up 75% ings of American in 1952 at ap¬
$1.62 per
common
from 1945 to 1946, took additional proximately
share. In 1953, expected early de¬
hops of 17.7% in 1947 and 10.1%
livery
of
eight
additional
DC-6B's
in 1948. Last year, total operating
certainly worth mentioning is that

$1.42

the

seem

total

operating

expenses

of

way.

additional

These

...

could

alone

add

flights

million

80

rev¬

miles, which on
our
estimates would yield about
$1,000,000 in net operating profit
enue

passenger

after

allowing for

5%

a

increase
After

in all international expenses.

52% tax, net additional earn¬
ings might considerably approxi¬
mate $500,000.
Hence, total net
increased earnings in 1952 can be
a

per common

reasonable

DC-6A's

three

and

to

would

add

into 1953 and

1954

increase

an

traffic, comparable to
jected increase in 1952
could add net earnings

the
over

1951,

over

$1.95

share after

per common

in

pro¬

a

52%; in¬

tax for each of those years.

come

However, there is a danger that
earnings of the company in
1953
as
projected by us would

the

reach

level

a

the company

its

tax

would

If

bracket.

the

occur,

that

into the

this

prof¬

were

earnings

net

bring

excess

in

to

that

(partially es¬
500,000,000 seat miles of capacity. year, instead of being projected to
timated) 19.6% over 1950. I shall
A 70% load factor on our esti¬ $6.25 would be reduced to about
expenses-

increased

mention

later

the

present

con¬

structive attitude of the CAB with

respect to granting new competi¬
tive routes to the airlines, which
contrasts with its too liberal
sions

in

giving

out

new

deci¬

routes

States had been indispensable to during the middle forties.
$2,5 billion of it is for acquiring allied victory. The editorial went
I
have
previously given you
land and buildings.
$25.3 billion on to point out that "if it is fear some earnings projections for six
of it calls for outlays for person- of our industrial capacity that is airlines and the basis for them. I
anel,
maintenance
and
depart- holding
Mr. Stalin back from suspect by this time many of you
Jinental activities. If you break it world aggression and war now, it
will have doubts about the weight
-down you find that the President is a job being very well done by
given to increasing costs in those
proposes to appropriate for the American industry in behalf of
projections. An example will show
next fiscal year only $21.7 billion world peace. Let us be sure that
we
did allow for much higher
other

mate

company

Comments

Therefore, available seat mile ca¬
could easily expand by projected at $1,700,000, or 70 cents
years was much more largely con¬ pacity
per
common
share.
Estimated
fined
to businessmen than cur¬ 700,000,000 seat miles in 1952 over
the
3,400,000,000 level in 1951. earnings for 1951 are $3.60 per
rently, that the passenger traffic
common
share.
Beyond
1952 and
base
and
demand
were
much Their projected increase in oper¬
fact

The defense budget is large, but

additional dollars for aircraft and

no
difficulty in flying our pro¬
jected 20% increase fin revenue
passenger miles in this country.

000, and depreciation $3,000,000.

86%,

revenue

average

experience

should

company

After
applying our further as¬
sumption and a 52% income tax,
salaries to
increase $10,000,000, additional net earnings from do¬
materials $5,000,000, fuel $4,000,- mestic operations would approxi¬

in domestic and

number of planes

ferent

the world today

force in

^ne-half. Yet instead of stabiliza-

tion, controls have unstabilized the
economy.
And such pseudo "sta-

as

from

the

already served. Route mileage of
domestic
trunk
lines
increased

*lde fl°wed only on® way*
(2) The inflexibility of labor

em-

Administration

Production
Others

Agency

traffic

nearly $500 billion in t. e past

849,-

individual,

Outlook for the Airlines

$300 billion to

riser^

Eco-

the

agencies,

■"emergency"
«omic

of

Public and private debt has

.

Of the

employees.

civilian

000

Ivare

America's economic health.

upo"

the

of

outbreak

the

Between

of mind is

j^m -muchless

the

capacity,

Continued

Jivirn

SErt&fe

of supply and

The

ahead.

long pull

the

following factors are operating in

seri- our

bureaucrats have

strongest,

foi*

the

markable ignorance

costs. For

instance, in the case of

American

Airlines,

our

computa¬

would

mates

operating

produce

earnings of $7,800,000, and after a
70% normal and excess profits tax
would

ings

net

leave

35

of

additional

cents

per

earn¬

common

1954,

25

scheduled for
and

per

would

early

other

1954,

would

which,
and

on

our

share.

of

55

a

other

would produce net
taxes

add

900,000,000 seat miles of

pacity
factor

DC-7's, which are
delivery in late 1953

cents

reduced

Air

new

are

in

of

to

the

$8.20

$5.98

per

share.

Eastern

ered

1954

Lines,

Inc.

has

on

model Martin 4-0-4's

expected

to be

deliv¬

1952, and 14 Super Con¬

an¬

stellations,

ca¬

received in the first quarter. These

all of which

be

may

60%
load planes will add a seating capacity
estimates, of two billion miles per year on an

earnings after
per

common

Hence, projected earnings

of American Airlines

into

be

common

which

share and

common

projection

order 60

share.
In

$5.,40

on

this basis

three years hence would approxi¬

annual

basis,

or

approximately

75% of Eastern's present capacity.

Offsetting
miles

this

flown

increase

will

be

the

in

seat

elimina¬

tion of older planes from the

fleet,
ohips and other manufactured imtions for 1952 allowed for an in¬
mate $2.52 per common share.
although such an elimination will
plements of war. With the total of
Conclusions
crease of $12,250,000 in direct ex¬
depend
on
the
traffic
increase
that
now running
United Air Lines, Inc. may re¬
It quoted a statement of mine penses in connection with flying
is attained during the year.
4o excess of $265 billion a year, as follows: "At no time in history
The
additional plane miles, $1,225,000 ceive 12 new DC-6B's during 1952
by no stretch of the imagination has
the productive might of in indirect costs resulting from and 27 new Convairs, according to company will therefore have wide
latitude in the number of miles
could the increase of less than American industry been so well
those additional direct operating recent delivery schedules. United
10% pose any productive problem, prepared
for whatever job is costs and $6,300,000 representing could add 700,000,000 available that it will schedule during 1952,
which
makes
Nor could it remotely justify the ahead. American productive might
forecasting more
seat miles to its capacity during
a 5%
increase in the level of all
difficult. If our 20% estimate ap¬
type of
a
controlled economy has well been termed the 'arsenal direct
1952.
Applying our general as¬
and
indirect
costs
over
which destroys the progress we °f democracy,' and it can best be
sumptions as outlined above, its plies, the total revenue passenger
~

.

.

^manufacturers' sales

,

jneed to

stay ahead of regimented

^aggressors.
«

.

Military Responsible for Defense

Delays
It is
iriot

the

whatever

decisions

quite two months
break

military authorities—

business—that

maintained as such by a minimum
of economic controls and government interference." That was not

■

have

have

made

after

the

out-

in Korea.

Since

that

abundantly

time,

proven

it

has

been

that:

delayed
(1) The problem is not allocaor seemed to delay production of tion
of manpower, * but jobs for
jmilitary requirements.
Industry people;




1951. These items total $19,775,000.

Mr. William J. Hogan,
dent

and

Treasurer

Airlines, in

a

Vice-Presi¬

of American

talk before the Se¬

curity Analysts of Los Angeles on
5, this year, w^s re¬

February

ported as estimating an increase
of $22,000,000 in that line's 1952
total

pared

operating expenses

with

1951.

He

as com-

could be in¬
$4,000,0005.
After a
52% tax, the increase in earnings
operating
creased

per

to

income

by

common

about

84

share would amount
cents

per

common

share, which would indicate net
earnings

of

$4.42

miles would

025,000,000
estimate

common

In

1953 United's delivery

an

1,675,000,000 miles in
1951. Applying our same cost as¬
sumptions, except that the 5%
general

increase
for

in

costs

Eastern,

is

not

since

the

addition of modern planes and the

share, as compared with $3.58 in elimination

expected 1951.

against

as

of

projected
per

increase to about 2,-

miles

efficient

of the DC-3's and less

planes

should

introduce

[Volume 175

Number 5106

The Commercial and Financial Chronicle

...

(1521)33
..

operating efficiency sufficient to
offset any general wage and
price

amounts

increase, additional earnings of $1

share.

per

share after

are

projected.

for

1951

shown to

earnings
to

1952-1954

of

$4.69

per

asserted their obligation to "foster is no reason to
suppose that the with the standard fare rate oC
the economic soundness of the in¬
policy of the CAB with respect to 6
cents per mile.
In early 1949,
dividual carriers comprising the
maintaining a sound airline indus¬ TWA and Northwest started
United States civil air transporta¬ try, Which is based on
qp interpre¬ operate coach-type high-density
tion system." This was a clear in¬ tation
of
the Civil Aeronautics
service between New York and
dication of a
policy to place the Act, will be changed, unless Con¬
Chicago and the West Coast. Part
carriers on a profitable basis and gress alters the
basic provisions of the reason for this
development,
constituted a
basic development of such Act. Such alterations are
was the inroad that nonscheduladt
in the airline industry. As a result not to be
expected.

common

70% income tax

a

Estimated earnings

are

tional

$2.90

share

per

stockholders, but

as

some¬

what higher for tax
purposes.

Civil Aeronautics Board Policies

The

was

In
1953 Eastern
has on order
for delivery in that year 16
Super
Constellations which should add
another one billion miles of seat¬

most

statement
tics

significant

policy

concerning the airlines

issued by the Civil Aeronau¬
Board

three

on

Feb.

21, 1949, after
of deficit

irregular

carriers, carrying pas¬
roughly 4 cents per
mile, was making on the traffic of
icy of that date, the CAB recog¬ million in 1946 and more than
$21 opments in the air transportation the
ing capacity. No additional equip¬ nized the difficulties that con¬ million in
regular carriers charging f*
1947 were not repeated. industry
over
recent years
has cents per mile.
ment is scheduled to be
From a modest
received fronted the airlines in their devel¬ In 1948 the total
operating income been the expansion of low fare
in
1954.
An increase
beginning this high-density coacJiin traffic opment and
postwar readjustment, of the certificated trunk line car¬ service
embracing the family fare type service has expanded into a
for 1953 and 1954
comparable to granted retroactive mail pay in¬ riers in domestic service
was $2.3
plans, lower excursion and round
1952 over 1951 would add another
creases for many airlines and in¬
million; in 1949 $24.4 million; in trip fares, and particularly, the full-fledged basic movement ®ra
$1.25 per share to net earnings in creased the mail rate of most air¬
1950 $62.5 million; and an esti¬ coach fare in
which nine certificated carriers
high-density planes
each year.
Hence, it is possible to lines on a temporary basis, and mated $100 million in 1951. There
at 4% cents per mile, compared
Continued on page 3#
project
earnings
of
$6.40
disastrous

results.

In

its

of the CAB

years

statement

of

pol¬

action, the operating

deficits of the airlines of

over

$5

Since

one

this

statement

of policy,
important devel¬

of the most

sengers

at

per

share

Eastern's

on

talization

by

National

present

1954

after

Airimes,

order eight

capi¬
70%

a

Inc.

has

on

DC-6B's, scheduled for

delivery

in the last quarter of
1952, and eight Convair CV 340
planes for late 1953 delivery. Its
fiscal year ends June
30, so that
comparisons
cannot be

If
in

with

revenue

fiscal

airlines

precisely made.

allow for

we

other

25% increase

a

miles

passenger

1951,

about

or

100

over

million

revenue passenger
miles, total op¬
erating earnings before taxes could

increase

by about $1,250,000 to
$5,750,000. These earnings
place National in the excess

about
would

profits tax bracket, whereas it
not in this tax bracket in the

was

1951

fiscal year. As a result, net earn¬
ings would approximate $2,350,000,
or

$2.34

per common share as com¬

pared with $2.59 in fiscal 1951.
In fiscal 1953,
the

eight

new

BC-6B's will be available and will
add about 315 million seat miles
of

capacity on a full-year basis.
For the entire
year, at least 200
million additional miles of
seating

capacity could be made available.
On our estimates, if a 60% load
factor is attained
net

earnings

this

on

capacity,

after

taxes would
rise by about
$850,000, or 85 cents
per common share.

In fiscal 1954,
National will have full benefit of
the DC-6B's plus partial benefit
from the eight new Convairs.

These planes should add about 150

million
that

additional
At

year.

net

earnings after

tax

would

$700,000,

be

seat

60%

a

70%

a

in

load factor,

income

increased by

70 cents

or

miles

about

r(oCJu/ente</ [T/atement

share.

per

Hence, by fiscal 1954 National's
earnings would be projected to
$3.89

per

share.

common

December
Current Assets:

further

in fiscal
a

new

Convairs would be available.

This

could

add

another

40

financial

an

not

have

planes,

Airlines,

that

so

Inc.

orders

any

JOj J

income drfccount

of

in¬

flew about 950 mil¬
miles

seat

in

9j

Revenue

r

approximated 600 million.

miles

passenger

1951.

less

On this

showing,

Northwest's operating
profits may have
approximated
$3,500,000. After nonrecurring re¬
ductions

and

amounted
per

to

1952

$1,668,000,

20%

a

senger1 miles, on
would
an

income

net

or

$1.49

Income

Before Taxes

enable

increase in pas¬

assumptions,

Northwest

to

cents

per

Northwest

is

share
not

of

in

8,086,332
8,086,3

9,946,067

10,635,523
10,635,5

5,376,468

3,190,339
3,190,3

156,737
156,737

223,292
223,2

,

y

for

11

1

$15,479,273

$14,049,155

■

Federal Income Tax and Provision

Renegotiation
Less:

Federal Excess Profits Tax

Stockholders'

Net Income (After Taxes and Provision
for

Equity

5%

on

$

$ 1,633,600

Cumulative Preferred Stock

(Retired Jan. 2, 1951)

stock

3,600,000

$10,449,155

Consisting of:

Renegotiation)

Per Share of Common Stock

(Based

3,239,000

$12,240,273

Long Term Debt

C

--

5% Cumulative Preferred Stock,

1,308,995 shares of

Series A

com'

■1,650,000

currently outstanding)

Dividends Paid

Cumulative Preferred Stock,
Series

Per Share of Common Stock

earn

additional

$1,215,000 in oper¬
ating income before taxes and
$585,000 after a 52% tax, equaling
70

Less:

5%

our

30,101,026

,.

•;

Goodwill, Patents and Tracings

mon

share.

common

In

taxes,

reserves

Miscellaneous Assets

flown

"

R

$18,721,855
$18,721,8

Property, Plant and Equipment,

new

earnings based on new
capacity cannot be made.

The company
lion available

$40,047,093

reserves

V-Loan, Accounts

Payable, Taxes and Miscellaneous

does

for

estimates

Current Liabilities:

Working Capital: Net Current Assets

creased

plane

1950
1950

cents

share in net earnings
annual basis.

Northwest

19
51
1951

31,

Cash, Accounts Receivable,

Inventories, less

per common
on

cflWfnancia/ ^Petition

Some

advantage would be gained
1955, since, in that year,
full year's utilization of the
eight

i

B

■

r

' :V

4|.

1,000,000

Common Stock

2,646,790

2,646,790

Surplus

6,943,483

6,168,765

$12,240,273

$10,449,155

Unfilled orders totaled $86,000,000 at the end of the
year.

common.

the

excess

profits tax brackets.
.

In

1953

and 1954, we are simi¬
handicapped in projecting

larly

Northwest's

earnings

new

are

planes

doubtedly,

some

in

that

scheduled.
new

no

Un¬

equipment

will have been added
by that time.
A 15% increase in its traffic dur¬

(W)

ing 1953 would result in projected
"

additional earnings of about $1.40
per common

|

share, and

a

10% in¬

crease

in

$1.10.

The mathematical total of

the

1951

Subsidiary:

SPRINGFIELD

7,

MASS.

ARMA CORPORATION,

M neoio

1954 would add another

earnings plus the addi¬




*

Mmmm

Brooklyn, N. Y

34

The Commercial and Financial Chronicle

(1522)

Continued from page

should

airlines

33

into

enter

equip-

World

interchange agreements for

ment

War

reduced

II

and

when

fares

service

Iish

endeavoring to estabcompetitive routes. This

new

has

rlPfifiinrr

additional coach service on
certificated carriers, it was
cities. In ternts of revenue pas- deciding the fate of certain irregsenger-miles flown, it amounts to ular air carriers, with respect to
over
1^4 billion miles, equal to their applications for certificates
over 10% of the total traffic.
For of public convenience and necesoperating over 64 air coach ing
schedules and serving more than the

effect

t.hp

industry

stabil-

of

decision has the effect of stabiljzjng the industry with respect to
the route patterns in this country,
since the decision in the Southern
Service case,- the Board has established interchange of aircraft
some lines this traffic amounts to
sity, authorizing coach-type serv- jn iieu 0f route certifications for
on
as
much
as
25% of their total, ices
only
on
transcontinental many airlines.
limitation.
On
without
Also
under
consideration
for
Moreover,
the lines have been routes
making money on this traffic, even Nov. 7, 1951, in the Transconti- some time has been a transfer to
after indirect costs are allocated nental Coach-Type Service case, the feeder or local service carriers
are

.ah

met

r\

cost

matoriole

f

a fixed fare, we
the airline industry

proaching

>

materials

of

against

is

Un.

die airlines

believe

forward
ment

ap¬

point of stabilization

a

viewpoint.

an

With

in¬
ex¬

panded air travel, controlled costs,
established service maij pay rates,
and relatively stabilized routes

so

and

wages
that

vestment

that it is not caught
inflationary spiral, rising

AX/acme

Thursday, April 10, 1952

.

creasingly attractive from

of providing adequate Provided the general level of costs
throughout tne country can be maintained by the airline

rather than

.

which should make its equities in¬

were

profit? disappeared,

the purpose

Outlook for the Airlines

.

to

of

its

J

^

±

industry should look
progressive develop¬
large growth poten¬

tialities.

-

Continued from page 5

_

ratio to the whole

to it on the same

system
cent

CAB

1951

is to

lines, coach service at even lower
rates will be expanded.
In

that

fliof

fhp

civil

of

development

avia-

in
will n°l
not
ln the United
Umted States
btateS W11A

tion

vide
the

only

revenue

riers but

large percentage

a

from

If this suggested
unprofitable stops

of

line

trunk

the

iA'sssas^iiS

Kfff-s
-Ms* «s
further extension of air coach

amounts by reason

nStivATtJal
objective. It wants.

service

With

high-density seating capacity

to be increased.

(2) The fares to be reduced below the generally prevailing mini-

4Vz

of

mum

cents

per

It

the

to

traffic
the

that

concluded

with

either

airplanes

pacity

coaches at

ca-

high-density

or

maximum of 4 cents

a

mile.

passenger

Under

normal

this

from

both

public interest.

This

decision

limited
CAB

permitted by
Our analyses

regulations.

have
the

operations

indicated

major

the traffic of

that

irregular

air

carriers

has been less than 5% of the total

cost

and

traffic

a

viewpoint.
This extension of the coach business is regarded by many airlines
with some misgivings in that it
may lead to a general reduction
in the fare ."structure of the indus-

try, with faults comparable to the
profitless years of 1946 to 1948
in the airline industry. The recent
all-out revolutionary campaign of
the CAB in effect disputes this

theory.
We

do

not

view

this

develop¬
apprehension
from the profit point of
view, pro¬
with

ment

vided the
control

tax

airlines maintain

of

they get

much

expenses,

into

bracket

the
and

flights.

In

though

even

profits

excess

exercise

discrimination in
coach

close

some

instituting

new

view, there

our

is

a
tremendous market for air
travel at the low coach fare rates.
In 1951 there were

approximately

50

billion passenger-miles of rail

and

bus

five

times

travel.
,

intercity
the

is eliminated

because

it

travel,

1951

If one-third
as

level

of

air

vt,wuajl aJLl
lJL
C1
potential
air travel

represents

intercity

travel

on trips of 100 miles or
less,
s '
which at present cannot be com¬
•

petitively served by air, there is
still
on

present market to be drawn

a

of

approximately

25 -billion

passenger-miles, after allowing for
a
conversion into fewer airplane
miles

by reason of the shorter
distances traveled thereby. More¬
over,
past experiences indicate
that lower fares
generate
new
travelers who
before
stance

by
n

tions

permitted by the economic
regulations of the CAB, together

with its increased enforcement aclevities, limit the threat of the ir-

reSuJar a*r carriers to the certificat.ed trunk lines. Unless the de"sion of/the CAB 1S reversed by
the courts, we would not be concerned

the

"

any

means.

cnrviitr

For

in¬

inVn L.

competition
"
""" of

"

irregulars in

relation

status

the

to

the

of

certifi¬

cated airlines.

The CAB has also acted during
1951 to establish service mail pay
for

rates

Airlines,
World

the big four: American
Eastern Airlines, Trans

Airlines

lines.

and

United

Air¬

In its statement of July 31,

1951

regarding this matter, it pro¬
posed rates, based on the actual
cost of carrying the mail plus a
return on the investment, of 45
cents

mail

per

rate is

ton-mile.

not expected

This

to affect the

airlines

adversely and offers a
stabilizing prospect which should
improve the investment status of
airline

Oct.

industry. Moreover, on
1, 1951, the CAB announced

rates

per

of

policy sets

the

mail ton-mile

service

for

each

domestic airline, ranging from 45
cents for the
big

four, as
Sept. 19, 1951, to
the smaller trunk
lines,
even higher rates
for the

lished

lines.

on

Unless

this

estab¬

sively demonstrated their eco¬
nomic soundness and
"certificated
domestic carriers should
promptly
and

substant&lly, expand

coach services/' *
At the same time
ueve

oping

its policy of
promot-




the highest
v,

service,

other

all

together

and,

of the

revenue

national

the

Act

1938

air

the

times. It

or

on

service.

this

return

8%

mestic
on

after taxes

admitted

assets

the international

mail

pay

offer

for

and

the indicated drain

12

tion

from

taxes

line companies.

Another

basic

policy

of

the

Civil

industry has enjoyed
growth since the end

most

is

balance.

continue, The

to

to

the

industry

in

undoubtedly endeavor to

the

application

continental
new

routes

service
and

a

of

certain

new

and

stated

tfahsother

that

the

is

adopting
on

an

this

airlines

some

the

along with

"Spel."

v

and Steel Institute this week, states that
uncertainty broiight about by the steel dispute over

it will be

finable to issue its weekly production estimate

for the current week.

WJUI, it states, announce ori Monday next, a fig¬
week's actual production.
In the week ehded March 31, the steel-making capacity for
the entire industry Was 102.1% of capacity, equivalent to 2,120,000
tons Of ingots and steel for castings, or a decline of one-half of a
The Institute

ag-

ure

lowwill

-•

airline in-v

dustry went through at the end of

cut from $2

The American-Iron

wages,

caution in view of the

difficulties which

long the price on that product was

scrap

because of the

___

ercise

sufficiently to put inventories in complete
where warehouse stocks of small cold-

area

ton.

buy, concludes

ex-

implement the Board's suggested policy
although they wilf °probably~ ex7

one
were

collections and a prolonged threat Of a steelworkers' strike, have induced mills to be a little more independent
and choosy in purchases of steelmaking scrap.
Mills' inventories
of scrap have beert;improving a little.
High rate of scrap rejec¬
tions at mills suggests that resistance to present ceiling prices is
not far away.
Sudh resistance would be following a pattern set
some weeks ago b§cast grades of scrap.
Redueed need at founddries for this material has brought deep cuts in the amounts they
are willing
to pa%; In some cases they aren't even willing to

importance
the future.

30, 1951, in which the Board de-

CAB

gressive attitude
fare
travel.
The

easing that set in some time

Disappearance of some of the pressure for steel,

coach fares

The

a

improved

pansion of low fares and develop-

Aeronautics
Board
was
enunciated in the Southern Service to the West
case, decided Jan.
nied

$4

»

ment of high-density
will
be
of
major

the defense program on the steel supply stands

not

but

In

finished bars

to expect that a substan¬

tial growth will

forborne of the

products, the mills became cautious, "Steel" pointed out, in

improving,

tripled since 1945, and there

reason

The country's roadbuilding needs give

in the overall demand for steel, this trade journal asserts.
Their receipts of steel, particularly light flat-rolled material, are

our

Its total traffic has al¬

adding to the already strong demand for concrete re¬

Warehouses continue to feel the

Summary and Conclusion

war.

The freer

weather for outdoor

ago

Federal Treasury was $49,480,730
service and

of the

The whole construction

good and continuous market for steel products.

are

The impact of

respec¬

substantial

with, it observes, at least, many postponed building

being brought off the shelf.

are

particularly in the demand for bars and plates. From all indi¬
cations, bar production will fall short of meeting consuming
requirements at least through the third quarter.

feeder

profits

excess

the

out

Office

on

spread and how long it

accepting third-quarter business.
Facing a steelworkers' strike
threat, they didn't want to book more tonnage than they might
possibly be able to deliver in that quarter.

$260,489,619,
$,378,315,992,
$457,105,006. For those
12

years,

and

long time yet.

a

steel

$632,132,860 and sustained costs
of $681,613,590. The
figures for

tively

demand will

Simultaneously with the increase in demand

for carrying mail $382,905,received ih postal revenues

were

automobiles

to a considerable extent on how well

inforcing bars and mesh.

Department paid the domestic air¬

mail

of

rise to the belief that demand for those two products may not ease

ending 1950 figures com¬
piled by the Air Transport Asso¬

929,

a

work

years

ciation show that the Post

renewed

outlook for construction and arrival of good

is

10%

the

production

field, if left reasonably free from government restrictions, should

appropriations
In

on

Government restrictions on construction were bring¬

To begin

projects

earnings base.

conception.

in inquiries from the

production of automobiles sells and how much of the
thwarted construction comes back to life.

probably is not anything like the
popular

-

increased

financial aid given
airlines through the Congres¬

sional

restrictions

far this

How

the do¬

and

V-."

flurry to relaxation of some government controls.

will continue depends

the

Now,
the

on

the

of metalworking,

ing fears that demand for structural shapes would fall far below
mill capacity in the latter part of this year, it adds.

fair return over
their earnings base
fair

magazine
v./,:;'.'

industry for cold-rolled sheets and from the construc¬
structural shapes, states the magazine, crediting

order books.

a

That

' '

appliances had cut the demand for cold-rolled carbon sheets far
enough that premium price mills were feeling the pinch on their

that

means

/

pickup is noticeable particularly

Government

the

in

;

tion industry for

The

$78,789,014 for the International.

to

The

automobile

rather generally accepted now to
mean

Vt

Industry

weekly

the

current week.

admitted assets for transporta¬

tion

aircraft engine and frame makers.

renewed

a

"Steel,"

says

way,

as

years

But the industry's

reduced during the month by extensive can¬

Auto

car¬

defense."

shaken

was

ity of earning

were

•

vigor in demand in some sectors of the
steel market where slackness had either arrived or was on the

this section of the Act
remains unchanged, the airlines
are
not only guaranteed against
wholesale, bankruptcy,
but,
in¬
deed, have a reasonable probabil¬
long

as

by

climbed to $32,000,000,

monthly total in almost 10 years.

There's

years,

recent

more

States

Steel Demand Pkkup Noted in Inquiries From

f

with

1946-1948. It has
substantially strengthened in

been

United

'/' 7-':

shipments in February

cellation of contracts by

public faith in this section of the
deficit

the

in

compensation for

rier, to enable such an air carrier
under honest, economical, and ef¬
ficient management, to maintain
and continue the development of
air transportation to the extent
and of the character and quality
required for the commerce of the
United States, the Postal Service,
arid

tool

unfilled orders

The airline

their
was

such

v'

Machine

transportation of mail suffi¬
cient to insure the performance of

mis administrative

existing carriers for
that CAB

in Europe.

the

administrative

t

endeavoring to reach
when the Board states that
coach
operations To. date have conclu¬

for

placed

piling statistics in 1918. The setback was ascribed to the United
States Government policy aimed at building up the tool industry

deter¬

to take into con¬

75c for

.

It is this type of traffic
that

carrier

air

tools

since the National Machine Tool Builders Association began com¬

In

and

on

the CAB is

When

CAB,
pay,

machine

for

Orders

Congress

for domestic air mail

limited scale showed that 18

able.

law,

the

international

This

S gJanteM to airlines in the amount
roaTh tvnfni^S. °f mal1 ^ under certain condiwould not have made the trhfIf
'
Poard action should have
that servicehad notbeen
avail- "°
material standing
adverse effect
the
mvestment
of the aira

of travelers

Federal

that

this industry has put together 1,068,000 cars,

foreign countries during February fell to $4,200,000, the smallest

thereof.

1938 should not be omitted.

of

cated air carriers.

estimates

So far this year

38% less than during the like 1950 period, "Ward's" discloses.

of the Civil Aeronautics Act

(b)

lines

forth

will be the industry's best since last August.

line

appraisal of the airline

any

that ^ had affected an administrative separation of service mail
Payri?eilts
subsidy
mail
payments forfrj*3
the
domestic
certifi¬

KtS

PAu

the

about

investment

almost the

of this travel

industry is aiming at a goal of 411,000 cars and 110,000
month, compared with 377,473 cars and 109.602 trucks
assembled in March.
If the target is reached, April production

sideration "the need of each such
rele-

effect

in

policy the

a

In

mining mail

in the

feeder

month-end drive last week."

trucks this

industry reference to Section 406

directed

airlines would not be

the

and

a

The

is

carriers, we would expect the
earnings of the trunk line carriers
to
be
increased
in
significant

respective

airlines domestic business by the certifiwill be able to inqrease schedules cated carriers, although it has ceron present coach routes. With retainly been more significant on
spect to service to'new points, car- the more profitable segments of
riers wifl be required to furnish long-haul operations.
It is our
adequate justification for same, opinion that the irregular opera-

'

carriers

granting of the applications of the

gates the irregular air carriers to

(3) Incre&sed low fare, off-peak
services

per

routes

shorter-haul

p00rer,
routes.

passenger

mde.

lucrative

the

beyond

transcontinental

(1) The number of coach flights

?;

carriers

following

Chrysler output, however, rose about 2,000 units, reflecting
the absence of labor disputes which tripped operations in the pre¬
vious two weeks.
Chrysler also was taking advantage of increased
second-quarter Federal output quotas. -

of the expenses.

elimination

at General Motors

rates

to the trunk line car¬

cause

line
-

fhie

tion in Ford's overtime operations and the "return to more normal

the

by

small percentage of

a

Treasury, the ability of the existing carriers to serve the cities
travel is placed within the eco¬
presently served, and the probable
nomic reach of a great majority
consequences of
such additional

MMrin n

*

served

sion of traf*ic and the effept of effected generally on the theory
such diversion on the Federal that it will aid both the trunk

air

be reached until such time as

v

divet
Q1

CflrrifirSj TilG prODaDIG

°

cities

certain

of

trunk line air carriers which pro¬

for such certificates. In so doing,
the CAB weighed the effect of

the

statement,

policy

pad

mum

the Board denied the applications

direct costs. If the re- of Air America, California Eastpolicy dated Dec. 6, ern Airways Trans American Airbe followed by the air- ways, and Great Lakes Airlines,

as

covering this

previous week's production of 2,131,000 tons, or

point below the
102.6% of rated
*

ago

capacity.

A month ago

output stood at 101.3%, or 2,104,000 tons.

production sto6d at 102.4%> or 2,047,000 tons.

A year

Volume

175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1523)
Car

Loadings Continue

Loadings of

j

;

,

to Advance in Latest Week

Total retail dollar volume for the week was
estimated to be
from unchanged to 4% above the level of a
year ago.
Regional
estimates varied from the levels of a
year ago

freight., for the week ended March 29,
1952, totaled 725,423 cars, according to the Association of American Railroads, representing an increase of 5,502
cars, or 0.8%
above the preceding week.

'

The

revenue

years

+3 to +7; East and Midwest +2 to +6; South
Southwest —1 to +3; Northwest —4 to 0 and Pacific
Coast —2 to +2.

According to

v

Preliminary Estimate
"

the

The amount of electric
energy distributed by the electric light
and power industry for the week ended
April 5,

•

.

was

•

mated at

Edison Electric Institute.
The current total

..

years

not

was

13%
a

the

Output Drops 4% the Past Week

units, and 118,638 units in the like week

a

a

year

ago.

Children's clothing
buying of shoes

The

still below seasonal
expec¬

from

like

the

decrease of 10%

period of last
was

year.

In

the

registered below the like

was

period of

year.

trade
as

,

made up of

92,275 cars
and 25,544 trucks built in the United
States, against 95,967 cars
and 28,068 trucks
(revised) last week and 118,638 cars and 29,646
trucks in the comparable period a
year ago.

Association

of

New

York

Easter drew

displayed continued strength the
and

near

favorable weather prevailed.

29, 1952, increased 14% above the like period of last
year. In the
preceding week a decrease of 11% was recorded below the similar
week of 1951, while the four weeks
ended March
29, 1952, a
decrease of 8% was registered below
the level of a year ago.
For the period Jan. 1 to March
29, 1952, volume declined 13%
below the like period of the
preceding year.

Exchamp
Spring Meet¬

ing in Richmond, Va., on May 1920-21, it has been announced by
Walter Maynard, Shearson, Hammill &
Co., President. Walter S.
Robertson,
Regional
Governor
from

Richmond, and

the firm of

partner of

a

Scott &

Stringfellow,.

is in charge of arrangements.
Mr.
Maynard also announced

plans

being formulated for
meeting of the Board in
Los Angeles and
San Francisco
during the week of Oct. 6.
This
the

are

Fall

will

be

has

the

first

visited

the

time

West

the

Board

Coast

as

Arrangements

in Los Angeles
charge of Phelps Wit¬
ter of Dean Witter & Co., who is a
will be

in

Vice-President of the Association.
Both

Mr.

Hellman
will
San

Witter

of

J.

arrange

and

Barth

for

Francisco,

Marco

&

the

meeting

in

Regional Gov

are

of the Association.

ernors

F.

Co., who

"M

•

against

W4

1

Business Failures Advance to

Since
Commercial

,

and

failures

♦

—

**

»%4

•

to

185

in

•

-

..«••••'*"

,1**.«»•y" "

New Records in 1951

increased

*. •

♦

V1'

July, 1951

industrial

:fevS

A

Highest Level
the

week ended April 3 from 164 in the preceding week, Dun & Bradstreet, Inc., reports/ Although at the highest level since
July, 1951,
casualties were';slightly below the 195 and 203 which
occurred

j
,

.

in

.

the

comparable

well below

'.

total of 295.

•

weeks

of

1951

the prewar level

'

5

.Casualties

-

•

and

and

were

1950.

Failures

down 37%

1939

,

involving liabilities of $5,000 or more
were slightly below the 155 of

to

rose

from 132 last week but

•

In

remained

from the

a

The Industrial

150

year ago.

Wholesale Food Price Index Touches New Low

V4'*'."/

Since July 11, 1950

•

-Moving

sharply

lower

for

the

•'/

.7

»••/

third

succeeding week, the
wholesale food price index, compiled
b,y Dun & Bradstreet, Inc.,
dropped to $6.40 on April* 1, from the previous figure of $6.48.;
This brought the current level to a new low since
July 11, .1950,

•

from

Because of the

,

.The

ture, the great

.

index

represents the sum total of the price per pound
general use, and its chief function is to show the
general trend of food prices at the wholesale level.
of

-

31

foods

to business and

labor force, excellent

were irregular last week.
After touching a
early in the period, the daily wholesale commodity
price index, compiled by Dun & Bradstreet, Inc., edged slightly
upward to close at 301.78 on April 1, or slightly above the 301.61

of

week

The

ago.

latest

figure

corresponding date of last year,
■;
>

.

.

throughout the

1952 low

a

compared

or

a

with

324.76

on

serves

drop of 7.1%.

plant locations in this

new

with the

per

Company

owns

and operates

of

growth of its service

on

the

Great

Lakes.

Sales

of

all

•

Domestic cotton prices moved in

mildly downward

>

!

a

narrow

Chairman

*•?.

The Year in Brief
•

1951

Plant and

grain

1951

1950

Property

(original cost)

.

.

.

$111,902,633

$99,249,660

$147,267,705

$131,938,567

Gross Revenues

,

•

•

36,147,111

27,792,066

46,733,502

37,517,706

Net Income

.

•

•

6,910,901

5,338,214

7,422,565

5,948,827

.

.

range and trended
•

$25.62

$23.19

$28.31

$25.80

Net Income per

Share

«

$ 4.04

$ 3.43

$ 4.34

$ 3.82

tinued in limited volume.

Shares

mostly to

cover

the

Domestic mill buying was fairly active
nearby requirements. Reported sales in the

moderately to
115,500 last week, and 78,400 a year

a

Easter
;

As
trade

Easter

shoppers

-

in

a

year

mary

4,277,291

$ 2.50

1,555,459

$ 3,344,095
$ 2.15

For

increasing numbers, retail

a

copy

of the complete Annual Report, please address

rose

perceptibly in most parts of the nation in the period
ended on Wednesday of last week.
For the first time in three
months, the total dollar volume of retail sales exceeded the level
of

$

as

Approaches

appeared

1,711,005

.

.

Dividends Paid per Share

•

Expansion

Outstanding.

Cash Dividends Paid

total of 125,300 bales,

ago.

Trade Volume Shows Noticeable

j

(CONSOLIDATED)

1950

Share

from

4

(COMPANY ONLY)

*>a

.

CHENERY,

of the Board

Book Value per

for

ten spot markets increased

-

facilities which

week, largely reflecting profit-taking
and
hedge selling following recent advances.
Inquiries from
foreign sources were fairly numerous but sales for export con¬

and

.

new

CHRISTOPHER T.

/, futures on the Chicago Board of Trade averaged 28,000,000 bushels
per day last week, against 35,000,000 bushels the previous
week,
and 25,500.000 in the
corresponding week last year.
•

pipeline system which

area.

-

navigation

a

day; it is spending millions of dollars annually for

will further accelerate the

prices declined moderately for the week, influenced by
the continued decline in
hog values and the unfavorable cornhog feeding ratio. Demand for rye was better and prices turned

opening

plentiful

territory. As is indicated in its 1951 Annual Report, the Company
increased its delivery capacity to 627 million cubic feet of gas

Corn

upward with much of the buying influenced by the expectation
of export sales to
Germany and Austria. Oats marketings in¬
creased; prices were firmer as demand improved on news of the

a

sections of the Industrial Southeast and is constantly growing

many

last year

supplies of wheat showed a further sharp drop dur¬
ing the latest week, totaling 105,994,000 bushels, against
170,929,year ago.

of America's

year.

Southern Natural Gas

Visible

a

one

in previous years, an in¬

transportation facilities and pleasant climatic conditions

the

Price movements in principal
grain markets continued to be
irregular. Wheat held in a narrow range with early weakness
largely reflecting continued favorable weather conditions in most
producing areas, while an expansion in export buying of both
wheat and flour helped to bolster
prices in closing sessions.

000

-

strategically-located territory. Here they find the full benefits of

Price movements

new

as

creasing number of industries selected

■

•

agricul-

Industrial Southeast has become

fastest-growing regions. In 1951,

in

Whoiesale^Goiiimodity Price Index Reflects Slight
;;.;r
Gain in Latest Week

\r

outstanding

advantages it offers

it

stood at $6.28, and marked a decline of
10.5% from the
$7.15 recorded at this time a year ago.

-

earlier, states Dun & Bradstreet, Inc., in its latest

of trade.

demand

for

The most pronounced

apparel.

Reduced

price

current

rises

were




SOUTHERN NATURAL GAS COMPANY

sum¬

in

the

promotions and extended
shopping hours helped to stir interest in many sections.

Watts

Building Birmingham, Alabama
j

a

1946.

4».

Canadian output last week rose to 6,126 cars and
3,094 trucks,
5.809 cars and 3,006 trucks in the
preceding week and
7,274 cars and 2,518 trucks in the similar period of a year
ago.

Stock

Firms will hold its

group since

in

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended March

;

Total output for the current week

.

,

years.

was

For the four weeks ended March 29,
1952, sales
For the period Jan. 1 to March 29,
1952, department
registered a decline of 10% below the like

preceding

past week

year ago.

Passenger car production in the United States dropped last
week about 4% below the previous week's figure which set a new
high for the year, and in addition was 22% under the like period

.

mildly.

rose

recent

a year ago.

Retail

*

/

in

declined 7%.

Passenger car production in the United States the past week,
according to "Ward's Automotive Reports," declined to 92,275
units, compared with the previous week's total of 95,967 (revised)

;

clothing
as

29,

1952, increased

store sales

>

men's

preceding week
period

ago.

U. S. Auto

-

for

plentiful

as

Department store sales on a countrywide basis, as taken from
the Federal Reserve Board's index for the week
ended March

63,009,000 kwh. below that of the preceding week. It was 464,156,000 kwh., or 6.9% above the total
output for the week ended April 7, 1951, and
1,302,169,000 kwh.
in excess of the
output reported for the corresponding period two

;

demand

May

The Board of Governors of the

+4;

broadened somewhat but demand
tations.

1952, was esti¬
(preliminary figure) according to the

7,200,000,000 kwh.

to

Shoppers increased their purchases of apparel
noticeably the
past week.
Demand was much higher than a
year ago
when
Easter had already occurred. There was avid interest in
women's
suits, coats, and accessories in the medium-price
ranges, while

ago.

Electric Output Shows Lower Trend

To Meet in

New England

0

total, however, represented a decrease of 30,012
cars, or 4%
below the corresponding week a
year ago, but an
increase of 5,019 cars, or 0.7% above the
comparable period two

■

Exch. Firms Govs.

by the following

percentages:

week's

35

36

The Commercial and Financial Chronicle

(1524)

dinarily'
the

of

high

The

levels.

Office

Price

of

Schedule of Broadcasts

opposed

under the

By ROBERT R. RICH

Mr.

Prospectus
your

request

upon

investment dealer,

'NATIONAL

or

from
from

SECURITIES

RESEARCH

&

CORPORATION

; 120 BROADWAY, NEW YORK 5, N. Y.

ONE OUT OF every eight dollars

ferred

of the

common

country's total personal net

employee pension funds, the pen¬
sion

should

to

private
group
pension funds now constitutes 12%
of total U. S. 1951 personal net

is

than $2 billion a year

"More

flowing into private pension,

now

retirement

profit-s h

and

funds," Moore said.

i

a r

,

as

funds

sion

pointed out.

geared to
undertake both the production and
the distribution of such "balance"
in

n g

of offer¬

California

employed

income will be

on

a

broadening scale in
future pension plan¬

and

pen¬

them

made

single
capital,"

-

y

PRACTICALLY
shares
were

held

ALL of the steel

Fund

Delaware

by

sold during the last two

days

benefits

to

income

going to be adequate

are

rearmament

gram—we decided

to sell

PUBLIC

LOSS

of

Jr., President of Eaton &
Howard,
Inc.,
"Economic
Democracy."

in¬

April 27:

confidence

&

would not be very great; at least,

Co., "Why Invest in Com^
Stocks?"

mon

"Collective

generally as a
sometimes makes it a
attractive
investment
for

Investing."

risk,

most

mutual

utilities—electric

funds, William A. Parker,
of

the

Corp.,
Mr. Parker

SELECTED

series,

reports

"Your

Money

Work,"

at

'

-

,

Shares

AMERICAN

quarter-end in the company's
This compares with $22,-

any

•

1

net assets at March 31,
of $23,441,827, highest
for

1952

sponsored by Kidder, Peabody &
-

(9.2%), and

chemicals and drugs (4.6%).

Parker

Boston, said Sunday.
spoke on the second of the radio

history.

472,260

"When

the public faith in such
industry is restored," Mr. Par¬

an

'

Bullock,
President of Calvin Bullock,
Hugh

4:

May

in

Nelson, in comment¬ Judgment Is Justified

W. Linton

Harry I. Prank-:

ard, Partner of Lord, Abbett

that it is regarded
bad

-

April 20: Charles F. Eaton,

entire industry, with the result

an

President of Wellington

Corp., "Honest Dollars."

pro¬

our

Walter L. Mor¬

April 13:
gan,

of

vestments in this industry."

pension

retirement

the

to

Co. for mutual funds.-

of last week.

than tripled since

whether

is

harmful

President

plan funds have ing on sales, said, "When the dis¬
1941," he cussions for a new wage contract
stressed, "the big question facing were first
started, we were of the
all planners and future pensioners
opinion that the demands of labor
private

more

be obtained from Investment Dealers or

vehicles

ning, Moore predicted.

annual contributions

"While

may

now

investment

of

sources

Moore

ing

has

direction

income."

constantly

of

the

over

The Fund

variable

of the country's largest

one

partial offset to wide swings

a

current

growth

constant

take

the

on

a.m.

date indicated:

was said to have made
living costs, retirement benefit
payments should be made both in a "very nice profit" in its liqui¬
dation
of
steel
the form
of fixed
income and
holdings.

Largest Source of Capital
"This

of the

in

.

.

Nelson, in his statement
Friday, added, "In view
possibility that government

will

WOR

Station

on

10:15-10:30

from

manage

Investment

President of the company.

originate

'Capehart' amendment."

made last

may

its
reported this week.
Money being accumulated ance between fixed and fluctuat¬
through employer and employee ing income," he emphasized. "And,

contributions

On Mutual Funds
The following programs

plan the steel industry and order it to
the investment of abide by the decisions of its board
funds to seek a long-range bal¬ —to avert a strike which would be

planning division of I. D. S.

billion, it was es¬
timated by Clyde J. Moore, Vice-

'12500 Ross Building, San Francisco 4,

stocks which fluctuate in

price and income yield.
"The
realistic
pension

savings is now going into private

savings of $17

»4Projpectus describing Company and terms

diversified

and

stocks,

1952

Thursday, April 10,

.

head

categorically his office
to giving steel pro¬
ducers any special price beyond
what they would receive anyway

Mutual Funds

.

Stabiliza¬

tion states
is

.

z

at

and

1951,

31,

Dec.

•

$19,873,108 at March 31, .1951. Per
share asset value rose to $13.82
,

ker

said, "the professional's judg¬
is

ment
act

justified.

He

boldly for the

vs.

often

can

benefit

During

his

of

$13.57 at the end of 1951..

the

;

.

V.

■

Selected

quarter

..i

added the following stocks to the
the shareholders, provided he divorces
portfolio:
L i b b e y-Owens-Ford , /
his thinking from the extremes of
4,500 shares; Motorola 1,800, Sear^e 7;.
the popular fads and fashions."
1,000, Studebaker 5*000: The com*
bilization Board moved into the Mr. Parker is a director of Rayonpany bought; 2,090 shares of Dii- '
controversy
until Chief
U. S. ier Inc., Loew's Inc., The Fidu¬
Mont, 4,b00 United Air Lines, 4,1)00 v ;?
Defense M o b i 1 i z e r Charles E. ciary Trust Co., and a trustee of
General ^ Public 7 Utilities,! J 1,500
>
Wilson resigned a few days ago, the Hobart Ames Foundation. He
Easterri7 Air Lines, l,500 General'/■
we
believed — as apparently: he has also been active" in the Red
Motors, 1,400 RCA, and 1,000 eakdv; ;
did
that
His
talk
was
any
wage
increase Cross.
broadcast; of American Natural- Gas, Chesa'
would automatically be followed over WOR.
.r
peake & Ohio, Consolidated Edi-, f
\
by a compensating price increase
son, ' Public
Service of Indiana, ;
OPEN-END REPORTS
in steel.* :
t'i-f ' y
and Zenith.
It sold 7,400 West"Now, unless there is a greater COMMONWEALTH Investment
ingfaouse Electric," ' reducing l the ; ; • ■'
reversal in policy than any we Co. reports net assets of $48,016,holding to 2,600 shares; and elimi¬
have witnessed in Washington to 045, on March 31, 1952, an all-time
nated its entire 6,000 shares'; of
~f»
"rim
' &■"}
Jii.
-V-l <* «.
*
date, it seems unlikely that steel high for the fund and an increase
not

such

result

would

as

in

inflation controversy that ensued.
cycle keeps hiking living costs in
"From the time the Wage Sta¬
if

our

future

the
50

far

are

date
indicates
retirement bene¬

to
or

from

adequate

income

to

meet

prolonged upswings in prices and
living costs. ^'^::y'_ "-i-y■'
Realization of this fact, he said,
has forced a general re-examina¬
tion

hmtAM Pond Distributors, be.
10 SrRtc

-

.

the form of fixed

in

fits

past

r

f
•*

•.

Inadequate

Experience
that pension

>,

the

in

*
■

Fixed Income

FUND

it has

as

years."
t

PUTNAM

long-run

present

of

pension fund investment

and distribution

policies and prac¬

V

tice.

Street. Boston

—

•

,,

receive the com¬

predicted that, as pri¬ pensating price increase they say
vate pension plans grow in scope they require.
"The President doesn't seem to
and coverage, pension fund trus¬
the
proposed
changes
in
tees will seek to balance invest¬ find
unreasonable while steel
ments between fixed-income se¬ wages
curities, such as bonds and pre¬ profits are continuing at'extraorMoore

ginning of the
-

All

listings

are

unless otherwise noted.
■

Div. Per

,

Share

Aberdeen

A Mutual
Investment Fund
■:

7.'".'"

•

For

a

your

r{.

free prospectus

"•h,•

""

Investors

r'''

:r<,

:•'

'

V

•

.

During

the
a

6ne

Holders

.

4- 5

3-31

4-21

3-24

4-21

3-24

in

5-

1

4-15

cash

4-21

3-31

with

1.89

15V2C

10c

From

10c

security profits

and

drug

6.8%,

r a

9.1%, electric utility
i 1 r o a d 6.3%, electric

equipment/and
Common

quarter,- the

88.5%

stocks

v

share from real¬

16.08

in

in

of assets, preferred

New England Fund

15c

EATON

5.2%

and 8.0%

31

governments.

in

oils

Balanced

five

public

(13.0%),

HOWARD

$77,727,899 on Dec. 31, 1951. The
largest common stock hold-

The largest common stock hold¬
are

&

reported net assets on March
of $83,862,114 compared with

Fund

in

4-15

4-30

4-30
17.99

4-15

5- 1

4-18

New York

W all Street

MUTUAL

STOCK FUND

Fundamental Investors, Inc.

SELECTIVE FUND

Manhattan Bond Fund, Inc.

FACE-AMOUNT CERTIFICATE COMPANY

WW&lford

Diversified Investment Fund

For prospectuses

of
of the boxes below:

SYNDICATE OF AMERICA

any

of these investment companies, check

one

Diversified Preferred Stock Fund
DIVERSIFIED SERVICES, INC.
Established 1894

A Mutual

Diversified Common Stock Fund

211

Investment Fund
Prospectus
from
The
200

may

be obtained

investment
Parker

dealers

PROSPECTUSES

AVAILABLE

ON

THESE

MUTUAL

FUNDS

or

51

Hugh W. Long and Company
Incorporated.

□ INVESTORS MUTUAL

□ INVESTORS SYNDICATE OF AMERICA

□ INVESTORS STOCK

□ INVESTORS SELECTIVE FUND

FUND

Please send the prospectus
5

*

.

describing, the investment
^

company or

companies

'

New York

ADDRESS

CITY-

1925




BUILDING, MINNEAPOLIS 2, MINNESOTA

NAME

48 Wall Street
New York j

•FOUNDED
VMNM

ROANOKE

checked above.

Corporation

Berkeley St., Boston, Mass.

stocks

corporate bonds 1.5%^ U. S.
Governments and cash 10%.
*
At the annual meeting of stock¬

stocks,

stocks,

bonds,

corporate
and

common

preferred

Los Angeles

Chicago

\

.STATE.

v

w

f

5.9%„Vaccounted .7 for

television

and

>

63.0%

23.8%

ings

From net investment income

over

share from investment
a

't

.

$15.55

2c

-

first

••

.

•'

profits, payable April
1, 1952.
Asset value per share holders on April 3 the following
increased from $6.84 to $6.95 dur¬ directors were reelected: Robert
S. Adler, Arnold R. Baar, David
ing the period.
On March 31, Commonwealth's Copland, John K. Langum, Anan
portfolio contained 327 individual Raymond, Edward P. Rubin and
securities in over 30 industries, P. P. Stathas.

Of Record

lc

Mutual

to

V

Fund declared dividends amount¬

Payable

;

increased

»

»

~

MUTUAL INVESTMENT FUNDS

Established 1894

,

12c

When

.

Mutual Investment Fund—

■

CALVIN BULLOCK
h'i

91c

1

Stock Fund—

security profits

Dividend Shares

writ®

investment dealer or

&

From net investment income

y

Price

1.1c

Fund

Composite Bond

From

Approx.

7:

ized security

quarterly payments from net investment income

Fund—

-

& i-T;\ "/-•»',

Largest: investments by industry •.
were oil 15.5% of assets, chemical

28,000 as compared with 25,000 at
the beginning of the year,
i

income and 4c

ANNOUNCEMENTS

DIVIDEND

year.

Shareholders

ing to 6c
FUND

I. T.

of 14% in net assets since the be¬

.

MUTUAL

'

~

companies will

T'." '

-ZONE

.

*

yolume 175..Number. 5106,... ♦,The Commercial and Financial Chronicle
(1525)

37

1?

'

ings

by

and light,

power

-in
1

industries

13%

insurance, 4%

and

4%

was

59%

in

in

I porate
notes

in

common

stocks,

bonds,
and

in

3%

4%

in

in oil, 5%

and

U.

reported

net assets

March

on

31

cash

3%

and

governments

and

about

stocks.

'

Largest

$4,062,410 com¬
$1,124,929

March

stockholders but also from the rise
in the market value of the secu¬

by industries were
light, 13% in oil, 6%

and

in in¬

$1,000
debentures
Many readers have pointed out of
outstanding
on
to us an error in a map published March
31, 1952 (excluding un¬
in "the Chronicle" on March 20 amortized
debenture
financing
showing the status of "Prudent costs) amounted to $5,724. Inter¬
Man" legislation in various states. est and amortization
requirements
The State of Pennsylvania was in on debentures outstanding were
error, listed as not having "Pru¬ earned 7.79 times. Net income ap¬
dent Man" legislation.
Under the plicable to common stock for the

Natural

Resources

panies operating in

Fund

is

Bill

appeared in earlier issues of
"The Chronicle."

a

broad

in¬

TECHNICAL

num¬

adoption of

distribution"

in

Payments

4%

in

building,

3%

in

electronics

in

electrical

Mutual Fund Notes

aviation,
3%

NANCY

sellors

reported

INVESTORS

net assets

DILLON

Stone & Co.,

products.

INCORPORATED

March

NET

per

ASSET

value

share

per

on

821,000 shares of Petroleum Cor¬
poration
at

of

of

March

31,

compared
the

on

America

1952

with

same

outstanding
$27.25

was

$24.75

as

sharp

per

amount of shares out¬
t,

standing at Dec. 31, 1951.

With

McCarley & Co.

GREENVILLE, S. C.—C. Lowry

Walker has joined the sales staff
of

McCarley & Co., South Caro*-

lina

13.35%.

National Bank Budding. He
previously with Courts & Cp.

was

York

and

of

H

a

y

d

e n,

Mutual Fund Coun¬

members

Stock

of

the

Exchange

New

and

all

Continued from page 2

the

reports

quarterly payments of

5%

about

increase

"policy of stabilized
by which
regular

a

in
amount

in

FUND

com¬

ber of natural resource fields
the United States and Canada.

6% in rayon and textile,
banking, 4% in chemical,
and

coverage

-

surance,

4%

asset

rities owned.

vested in the securities of 81

stock holdings
13% in power

common

of

The

•

31, 1951 or a gain of
260.81% in the 12 months' period. Berger Bill
recently passed by the three months ended March 31,
Mr. Valenta
1952 (exclusive of profits on sales
pointed out that State
legislature,
Pennsylvania
this growth in net assets resulted trustees
of
are now permitted to in¬
securities) was $96,809 com¬
not only from sales of the shares vest in
equities meeting certain pared with $85,405 for the three
of the fund's capital stock to new
provisions. Details on the Berger months ended March 31, 1951, an

in convertible preferred

were

total

pares with net assets of
on

of
$13,670,546,
compared
with
: $12,570,377 on Dec. 31.. Of the
fund's assets, 86% were invested
in common stocks, 11% were in

;

This

S.

HOWARD Stock Fund

&

the last fiscal year on Nov.
30,
Frank L.
Valenta, President, an¬
nounced.
of

short-term

in

CORRECTION

the

$2,560,366 in net assets
reported by the fund at the close

gas

stocks, 17%
16% in cor-

cash

March 31, a gain of 58.66%

on

over

Portfolio

j Government bonds.
EATON

410

in

natural

chemicals.

preferred

13%

are:

share

per

be

can

The

specified

a

planned.

are

increased

or

decreased by the fund, but it is
planned to keep them at the spe¬
cified level, if possible.
tions will have their

Distribu¬

pies
the

or

House;
price level

and

yes,

whether
It is

combination of capital

any

Security I Like Best

White

general

falls;

origin from

one

the

;

pretty

have

we

war

difficult to

whether

prewar

rises

or

new

much

so

little

or

say

peace.

productivity and to

products.

process

Tall Oil, a product

known

in

1946,. has

been

finding increasing acceptance and
use in industry; a number of new

that Radio

Corporation is to be the General derivatives have been developed.
Motors, Chrysler or Ford of the The company has been expanding
coming Electronics Age. But it is and is now adding considerably to
'
share increased from $10.73 to New York on
now Well
up toward the top as a its facilities for processing
Tuesday, April 8, at
Tall
PERSONAL PROGRESS
2:30 p.m. in the French Room of
contender for such a prominent Oil because of growing demancS.
$1237 during the same period.
APPOINTMENT
of
John
W.
EdLargest holdings by industries The Park Sheraton Hotel, New
place.
It is well financed, well
Perhaps the development that
gerton as a senior analyst for the
Were
25.4% in" natural gas and York City.
managed, and already has a his- gives the greatest promise of inelectronics industry research
oil, 18.5% in railroads, 10.4% in
tory behind it of keeping abreast creasing Newport's future
A PANEL discussion on mutual
ear$group in the home office invest¬ of
paper and pulp, 8.6%
in metals
changes in its field and adapt- ings is in the "growing and
funds was a special feature at the ment
management staff of Inves¬ ing itself to them.
and mining, and 5.7% in chemiprocessing
of the natural fibre,
regular meeting of the Wall Street tors
Diversified
tals'and drugs.
Services,
Inc.,
One should feel fairly comfort- ramie.
Ramie is the world's
Club of Pace College Tuesday.
was announced
by Guy Lemmon, able as a
stockholder of Radio strongest natural fibre and actu¬
NEW ENGLAND FUND'S
Arnold
total
Green,
Manager
of administrative officer of the I. D.
Corporation
of America
during ally becomes stronger when wet
Gtiie.tr assets on March 31, 1952 were Bache & Co.'s mutual fund de¬ S. investment
on

31

of

$124,157,211, compared with
$100,366,492. Offering price per

.

principal exchanges, conducted
Investment

an

Planning

Forum for
the Daughters of Pennsylvania in

surplus, investment income
curity profits.

se¬

or

•

department.

V$5,365,107—33% higher than the partment in New York, spoke on
Edgerton, a graduate of Harvard
the history and investment poli¬ Business
J $4,047,*257 reported a year earlier,
School, is a native of
cies of
/and 7% higher than at the 1951
the
various
New
funds, the
Haven, Conn. He formerly
mechanics of their operation and was
an
year-end.
■
account
manager
for

1952.

,

EVERETT

J.

.

MANN

rather than when

dry.

mercial

could

be

thus

uses

unlimited.

-it

Number

of

sharesyoutstanding

295,509 (another new peak in
the 21-year history of the Fund)
^compared with 227,517 on March
31/1951, and 279,780 on Dec. 31.
V' Net asset value per share was
..was

their

present
market.
John

.

.

$18.16, up from $17.95 at the end
•{of 1951.J. -; Adjusted for the $1.10 per share
,

4

.

distribution from net capital gains

hpaid in December, asset value has
increased by 8% in the last. 12

and

D.

role

Case,

in

the

capital

Vice-President

Treasurer of the First Inves¬

tors

Corp.

discussed

the

opera¬

tions
of
his
company
and
the
aspects of instalment plans.
The students, specializing in ac¬

counting and finance, were given
an
opportunity to ask questions
of both speakers.

Brown

Brothers

and

assistant to

the

investment

and
the

Harriman,

Chairman of

committee

American

Automobile

Co.

was

He

Shares

Insurance

with

Management

Television

Co.

For

.

a

SHARES

TRUST

revised prospectus

GROUP

more

than

tees have had

a

year,

some

the trus¬

35% of assets

in cash,
short-term government
securities,.-. and - other, high-grade
V defensive holdings./
:r >
v v;

; NET

ASSETS ; of

sources

MERGER
ond

Natural

Fund Inc. totaled

Re¬

$4,062,-

of

MuturJ Fund

holders

at

Loomis-Sayles Sec¬
Loomis-Sayles

into

Fund

was

the

voted

of

end

by stock¬
week.

last

The merger will be effective May

1,

1952.' The'combined

the

funds

lion

will

with

total

assets'of

has

newest

$25.5

mil¬

dated

March

pared

for

which

Sheraton
set

are

April

5,000

share¬

Stock

ering

>.
Trust's

March

Boston

&

26,

has

24,

1952/

issued

a

1952.

Clark

prepared

Common

prospectus

a

notification

shares
the

at

with

the

Commission

of

capital

31

cov¬

stock

to

market.

industry

DODGE

BOSTON

&

COX

Fund

March

on

23

filed

shares

west

Company,

Massachusetts

March

witS.

SEC

stock

capital

Investors Second Fund

GEORGE
March

ficial
at

26

market,

filed

to be offered

to

Fund

on

shares

of

offered

at

of

Boston

shares

fund

to

of

be

on

bene¬

offered

underwriting.

shares

at the

North¬

statement

be

Investing

100,000

on

be

underwriting.

the

without

STREET

Pacific

600,000

400,000

on

in

to

Corporation

$1)

PUTNAM
filed

interest

WALL
26

'par

covering

stock

registration

a

regis¬

a

SEC

Washington.

covering

without

market

the

through

Seattle

INVESTORS

filed

31

the

market

Co.
of

when

March

on

market without under¬

writing.
FUND

on

March

31

filed

on

60,000 shares of capital stock to be offered
the market without underwriting,

at

Century Shares Trust

TOTAL NET

relating to the shares of any of these separate
funds may he obtained from authorized dealen or

prospectus

investment

1952,
.

Corporation at March 31,
with securities valued at

market quotations and before de¬

111

DEVONSHIRE STREET

BOSTON

'

of
principal amount of
outstanding debentures, were $10,714,859
(excluding
unamortized

debenture

6i

YORK

734).

Broadway




CHICAGO
iao

South LaSalle Street

LOS
210

ANGELES

c

h

e

West Seventh Street

31,

of

1951.

common
on

Net
stock

March

with

1951.

$15.08

$10,329,602
asset
was

31,
a

on

$15.76

1952,
share

on

have

larger

the

property.
Louisiana

chem¬
shown
inclina¬

to

a

being
the

continued

ex¬

in income/V/

speculatively

oil

production,

be

expected

capitalized.

that

relative

a

1931,,

chance
the

into

for

the

investor

to

contribute-more

company's

earn¬

32,800 shares of
$100 par preferred stock precede
the

to

and

common

shares.

stock issue of 621,359

The

common

the chemical field, seems to offer
a

to

on

may

Sinking fund notes of

$1,619,000

and

newcomer

State.1', of

Newport Industries is modestly

prices
overoptimistic dis¬

in

the

restrictions

ings.

present

incorporated
is

Louisiana

jvMiou»\ oil

these.wells

the

to

the

an

in

to

When

revenue

writer

lands

lease

removes

yield
Everett J. Mann
substantially
in price, even
though it seems to

book

amounts

value
to

of

the

$16.15

per

share, again high for a chemical
when considered in relation--to

get

chemical

industry on an
amazingly favorable basis.
Pres-

market price,

ently selling at about 19 and paying a $2 dividend, the accom-

still

Although Newport Industries is

a long way from enjoying
the investment prestige of the
large chemical companies,.! it
with some
might be reasonable to envision
chemical
companies
should
be, a price-earnings ratio of 10 in
interesting both to an investor the not-too-distant future.
With

comparison

panying

Newport
of the established large
of

who would like to buy a

the

at

and

same

is

time

to

leading

rosins
from

the

and
the

and

turpentine
of cutover pine
Prior to World War II,

the conduct of

the

words

"nylon"

Newport

Since the war, the

Receilt

P/E

Price

Ratio

19

6.5

72'

Allied Chemical

.

95

Union

Dividend

$2.00
3.10

18.3
•

20.2-

>

16.7

60

Carbide

,

?

,

%

18.0.

85-

,

Industries
inf^y
the New York Stock

15.7

t

107

share

as

"rayon"

and

today.

has
built
three
new quoted on
plants to add substantially to its Exchange.

NEWPORT INDUSTRIES

used

commonly in textile circles as are

company

compared

of

Utopian to envision the day when
the word "ramie" may be

,

this business.

those

as

price of 19.. For the investor who
thinks .in
terms
of
long-term
products growth, it may not/ be entirely

stumps

Louisiana for

due

apparently
good

as

of naval
extraction of

processors

is,

continue

1951, Newport could rise 50% to
a quotation of 29 from its present

seeking an undervalued situation.
Newport Industries is one of the
stores—that

earnings

1952

chemical

Dec.

Dec.

a

'companies,- ahd there ,a're|low_fiye
producing .wells operating on/its

Nor

of the

value

the

timber

over

mica 1

stocks.

These compared with total

assets

expects

are

years/

nreuu'hder

of $7,-

costs

coming*

inves tment

,

net
NEW

financing

markets

In

world, has
p 1 a c ed'' o n

the

operated three proc¬
assets of Carriers & essing plants in Florida, Alabama

duction

VANCE, SANDERS A. COMPANY

For

the company

General
A

Ubpitil

minded,
Newport enjoys the advantage of
an oil "kicker.". Some: of .its', cu^-

forests.

CLOSED-END NEWS

domestic

resultant increase

a

terrific

premiums

t\yo

WHITEHALL

Re¬

substantial

market.

pansion in ramie production with

they
contemplated

stock

capital stock

the

pbd

until

processing, but the degumming
plant at
Clewiston, Florida} p is
finally operating successfully, abd

company

hence

27 filed

the

capital

market

at

NATIONAL

f

with

of

at

,'1-'

March

on

statement

500.000
offered

offered

underwriting.

EQUITY FUND
tration

to be

fibre

1951, ramie had to-be sent abroad

shrug

was

the Fund

off

opened.

terest

in

the

ibut

for

hope of
its equities, by

counting of the industry's future.
Newport Industries, Inc., which

without

I 'I

eyed • the
its vast

in .the

registration
statement
with
the
SEC
covering 30,000 shares of beneficial in¬
a

Idlassachusetts Investors Trust

and

quantities

less

represent
OF

since
1940,
decorticating

cently have kept any

new

the

in

degumming

have

potential

ramie

difficulties

have given up
with a hope-

much

March

on

who

purchasing

tion

Exchange

400.000

chemical

growth

icals

Investing

of

and

offered

dated

REGISTRATIONS

letter

a

pre¬

1952.

STREET

Securities
be

of

March

has

SEC
BROAD

is

'

dated

Investors

pro¬

shareholders

prospectus

STEVENS

1,

has

INVESTORS

is

dated

Fund

to

••

FUND

April

filed

Boston

long-awaited

stock:

The

prospectus

prospectus

1952.

prospectus is

plans for distribution

MASSACHUSETTS
latest

SCUDDER

Bond Fund

the

common

forth.

of

their

1952.

1,

dated

cm

TRUST

dealers

spectus in
of

released

1952.

31,

INVESTMENT

Economics,
Duke University

some of
this time may

dated March 31,

SECURITIES

MUTUAL

nearly

holders.

Chi¬

NEW PROSPECTI
CENTURY

.

months.

in

before joining I. D. S.

cago

growing

of

Newport Industries, Inc.

the

of

Professor

liters

Newport has afes

.

Associate

com¬

Its

Yield

1(!?
4.3

a

V'

*2.40

2.2

|

3.55

•4.2

-

2.50-

2.8--

2.00

3 3

31,
*

»

Plus

stock.

,

!;

:

i

.

[ZZL\

38

The Commercial and Financial Chronicle

(1526)

where

Tomorrow's

Walter

Whyte

lists of

oils

apparently

still
I'm

have their head of steam.

writing we seem
moving from an economy
scarcity. Copper, rubber,
steel

even

The penny

oils traded in on
discover
that
there's
been the Toronto Exchange are fi¬
considerable switching going nanced heavily by American
on which will account for the capital.
Should that bubble
current action.
burst, it is quite likely that
to

At this

aluminum and

one

are

holdings, I think you'll

*

the

*

❖

plied that profits be taken on

reasons

For

man

a

stocks

American

better

In last week's column I im¬ will suffer.

psychological

with

a

loss in

in

greater supply. It is strength. As it was written, one stock seldom takes his
even possible that this greater strength was present in most
loss. Instead he sells his prof¬
supply may be an underlying portions of the list. Now that
seems
to be the itable holdings to protect his
reason for permitting strikes. weakness
now

*

*

*

Incidentally, don \t let
strikes, or threats of work
stoppages, color your thinking
too

You

much.

be prac¬

can

tically certain that the effects
of strikes have been already

rule, selling should be halted.

poor

If

other

haven't nailed down
some
of your profits on
strength during the past two
you

weeks
when

rule.

or

don't get out now

so,

to be the
Wait until new strength
selling

seems

higher echejtans a long time before they
occurred.
It is possible that Continued from first
their judgment may not prove
entirely right. But taking a
chance on such a possibility
would be flying in the face of
precedents.

It should be the

ones.

few

but

round

way

do it.

[The

views

article
time

do

not

Chronicle.

expressed in this
necessarily at any
those of the

with

coincide

They

presented as

are

of the author only.]

those

develops.

evaluated in the

*

interesting to note that
some
of the copper stocks,
particularly Kennecott and
American Smelting, are show¬
ing market signs which in the
past preceded advances. Odd¬
ly enough the rubber issues
are not acting well.
This di¬

Pacific Goast
Securities

with

agree

his

to

stick

inwardly inclined to

braces, of course, the whole story
of man on this earth, his every

him that he should
preaching business

Yes.

Chicago Board of Trade
New York Cotton Exchange

of us. I would like to
friend the preacher an
answer now, if I can, by consider¬
ing these questions:

every

give

religion? Is there any common
denominator among them?
I studied economics in
It seemed all «business»
Economic principles

Now,

then.

me

and

religious precepts seemed to
far apart as the North Pole

COrtlandt 7-4150

Teletype NY 1-928

Private Wires to Principal Offices

Barbara

Monterey—Oakland—Sacramento
Fresno—Santa Rosa

Each subject is so complex that
one to the other seems
However, in the business
world, I have learned not to be
baffled by any problem just be¬
cause
it seemed complicated.
I
also learned that complex prob¬
lems can be
solved simply and
understandably.

....@80

June 11

St. Paul com..@21%July
Doug. Aircraft @56% June
Zenith .......@79%June
J. 1. Case... .@64%May
American Can.@129 July
Homest. Min'g @34% May
South. Pacific.@73%June
Pure Oil
@67%May
Am. Cyanamid @111 July
N. Mex. & Ariz.@21
lune
North. Pacific.@93
July
Amer. Viscose @61% June
iPhelps Dodge.@72%Jane

11
9

587.50

225.00
450.00

287.50
13 137.50
12

21
9

425.00
287.50

19

137.50

1 850.00
16 200.00
7 487.50
9

Allied

387.50
450.00

Chem.. .@72% 4mos.
Int. Tel. & Tel.@18
6 mos.

425.00

Pepsi-Cola ...@12

137.50

11

mos

137.50

Subject to prior sale or price change
Explanatory pamphlet on request
We

also

make

quotations for 30 days,
60 days, 90 days and 6 month options.

THOMAS, HMD & BOTTS
Members Put & Call Brhrs. &Dlrs. Assn.,Inc.
00 Broadway, New York 4

Tel. BO 9-8470




a

problem

is

are

clear and simple.

Solutions

which

plicated

to be almost incompre¬

as

are

so

com¬

hensible generally are offered by
those who wish to confuse, or to
cover

up

their

own

lack of under¬

a

few

I

will agree:

Let

us

power

(3) Each of us has the natural
right—from God—to protect and
defend his life, liberty, and his

tems, and why they act a's they
I

want

to

consider the science of economics

from the viewpoint of human be¬
havior.

Thousands of

books, millions of

words have been devoted to

kind

and his

the ages. The
entire

history

man¬

actions throughout

subject
of

covers

the

and

his

man

would

willingly and gladly dele¬
gate to others the right to protect
you from anyone who attempted
to destroy you, your
family, your
liberty or your property.

he

the

and

of

to do

some men

with other

other

men

they please
products

as

Our forefathers did

and the

men's

labor.

Here

so
delegate
they banded together, wrote

when

are

the

Declaration

of Independence
only different but in¬ and Our Constitution.
They estab¬
compatible things called by the lished a form of
government which
same
name-r-liberty. And it fol¬ permitted and
encouraged the de¬
lows that each of the things is,
velopment of the economic sys¬
by the respective parties, called tem that we now call
capitalism.
by two different and incompatible It
might better be termed the
names—liberty and tyranny."
market

not

two

intend

I

here

to

economy system. The gov¬
ernment
they established dele¬

certain

use

words

frequently. Since it is vital
that you and I have an under¬
standing concerning the meanings
of these
them

gated

words, I propose to define
we proceed.

as

to

no

aggression

one

others,

and

citizen

from

any

of

power

plunder

or

against
protected each

thus

conceivable

every

kind of aggression against his
life,

First, let us take the simple liberty, and the pursuit of happi¬
word "law." There are many kinds ness. It thereby permitted human
of law, first among which are the beings to exercise their fullest po¬
moral
or
natural laws
derived tentialities, or God-given inalien¬
from God. I refer, of course, to able rights,
to their individual
such

things

the law of gravity, utmost

as

capabilities.

lished

of

law

a

They estab¬

law

in its purest sense as
"common force organized to act

human

being

as

obstacle

an

wonder

alter these.

can

we

to

were

works, from the dawn of history
down to the current
day. It em-

his liberty and his prop¬
every person
has such
God-given rights of defense it
follows naturally that any group
of men has a corresponding right
to organize and support whatever
type of defensive force is needed
to
protect
such
rights.
Life,
liberty, and property do not exisj
person,

If

erty.

of man-made laws. They

upon

based

on

If mankind has the

privilege of
life, liberty, and
property, it follows logically that

his

socialized

a

belief

society
frailty of

in the

the

individual, that he has no
capacity to choose wisely and well,
and

that

and

made

he

must

be

protected

from

secure

mistakes.

his

own

Then they would have

decreed that his

actions, his human

behavior, should be directed and
channeled into serving the State.
They would
it

dreamed of.

were

cided

have

preached that

insufficient for laws to bd

was

just—that they must also be phil¬
anthropic, and guarantee to every

he

at the

cannot

same

time have

citizen
all

complete protection from

the

the

,

same

property of another.

time.")

(4) We have the power to think
and reason, and no other creatures
on
this earth are endowed with
capabilities approaching those of
mankind.

to control our actions. Thus
are born
with the liberty to

power
we

whatever

pursue

would

What Is Economics?

Next,

consider

let's

-

"economics."

the

defined

If

word

as

the

science of human action, or theory

ends

elect,
fellow

we

unless circumvented by our

behavior, which it sure¬
we will be on firm
ground. We all know that humans
ly is, I believe
in

behave

for

ways

millions

millions

Most

reasons.

primitive

of

different

different

of

of their

have

been

from

acts

down to today are
by two basic compul¬

man

themselves have
the

frailties

of

justice
as

How

modern

He

is perfect but,
us is
capable of improvement.
the

same

us

time, each of

(8) Minkind achieves his maxi¬

happiness
of

a

when

living

as

group with his fellow
Yet each of us is an

or

both

of

these

The fact that

lives,

and

ultimate

some men

some

happiness, in

toward

one

goals.

lose their

achieve
refutes this

never

no way

Since it is virtually impossible
for any man to achieve

living
the

every

vice

could

man

and

virtue,

punishment
agree that

choose between

with

resulting

reward?

or

If

we

our

concept of law is
correct; that it is to prevent in¬
justice from .reigning, it must fol¬
low logically that when law is di¬
verted

from

this

an

proper

purpose

instrument of plun¬

der.
If

either of

these basic God-given desires by

they (or

of

avoid

it becomes

statement.

from

today)
transgressing God's concept
responsibility which
willed to mankind, so thait

(1) To stay alive, and
(2) To attain the maximum pos¬
sible measure of happiness.
directed

could

socialist

of individual

is

free

people they

being trampled underfoot

result.

a

the

sions:

Every act of every human being

been

the

plans,
liberty of their sub¬
jects being legally destroyed, with

Experience teaches us all
that right and good actions pro¬
duce varying rewards, the great¬
est
among
which is happiness.
Conversely, of course, wrong and
improper actions produce opposite
results. (Parenthetically, I think
we can also agree that each per¬
son
is solely responsible for his
own actions, so that responsibility
in the final analysis can never be
shifted to any Other persons.)

earth

ex¬

without the

motivated

on

to

would plan for. They would have
been unable to explain how
they
could have enforced their

men.

(6)

unable

plain why their chosen dictators,
or
leaders,
or
planners would

of human

(5) Because we have the power
to think and reason, we have the

creatures.

subject
people
act under the capitalistic system;
how they act under socialistic sys¬
words,

as

normal hazards of living.
opposite right of using his They would direct his every action
own force aggressively
(or a col¬ and save hirh from himself.
property. (It was Thomas Jeffer¬
lective
force
aggressively)
to
If they had established such a
son who said: "The God who gave
us
life, gave us liberty at the destroy the person, liberty, or socialistic society they probably

part

I propose to discuss the
of people in general; how

other

for

protecting

tural laws.

mum

Economics From Viewpoint of
Human Behavior

In

do

existed long before any such laws

No human being has the
to alter any of God's na¬

(2)

at

try to state the problem
simply and find a simple answer.

do.

your home, your clothing,
food, your actions, or the
products of your labors?
Con¬
versely, probably each of you

your

product of his labor; while with
others, the same word may mean

because

(1) You and I are alive.

(7) None of

standing.

787.50

7

16

to

in¬

proffered it is generally no good.
Basic truths

2 $350.00

complicated,

a

solution

volved

Per 100 Shares Plus Tax

make

as

Whenever

OPTIONS

to

want

believe you

one

place in
the world of religion? Is there any
connection between a capitalistic

I

assumptions, with which

basic

my

Does economics have a

to

First

a

relating

New York S, N. Y.

Shell Oil

thinking

thought and action, A big subject?
Complex? Infinitely so. Let's
attempt to make it simple by de¬
fining our area and our purpose.

futile.

14 Wall Street

Phillips Petrol.@56%June

been

great deal about his dilemma. It
raises some vital questions for

is from the South.

New York Curb Exchange (Associate)
San Francisco Stock Exchange

SPECIAL

'

have

I

dren,

for

injustice." No
brought up to
There are man-made laws of a believe that "law is justice," when
it was designed to save us from
thousand and one varieties.
.harm.
v:v.;;;.>'V
I shall use the term "law" only
Our
forefathers
as
it applies in protecting the
might easily
God-given right of every single have picked a different form of
individual to lawful defense of his government. They might have de¬

Capitalistic System!

nomic business.
But

of

Thursday, April 10, 1952

.

-

while I should stick with my eco¬

be

'

New York Stock Exchange

Francisco—Santa

was

college>
'

INVESTMENT SECURITIES

San

I

cause

rYiPP Rj f"!n

ocuwaoacner oc

Members

want

.

"

society and the religious way of
there any connection be¬
tween
a
socialistic society and

1919

in

declare

liberty;
but in using the same word, we
do not all mean the same thing.
With some, the word 'liberty' may

no

life? Is

on

Coast Exchanges

Established

all

believe, already in agreement that

page

at the time, probably be¬

answer

It is

Pacific

much

are

We

life, and the law of
personal responsibility. We are, I

*

Orders Executed

now,

one.

the

Have Faith in Out

*

just

and another an other not going to fail in love with
is not unusual. In future them at this stage of the mar¬
months, when the various in¬ ket cycle. I distrust anything mean for each man to
vestment
trusts
issue their that the majority are with. pleases with himself

By WALTER WHYTE

of

The

action

goes

group

way

Says—

be

one

way

Markets
itt

market

of

version

.

we

grant that

mankind

is

even though
imperfect, he is still

the

highest manifestation of God's
completely isolated from
of mankind, man has will in the universe; if we grant

rest

that mankind by nature must live
gether in order to pursue his ob¬ in groups, then our problem is
brought sharply into focus: under
jectives most effectively.

from time immemorial banded to¬

what kind of

individual, infinite and variable.

an

economy or social
If you grant the assumption that
order will mankind's
possibilities
Now, misunderstandings all too mankind was intended to live in
take root and flower to their
ful¬
frequently occur in the field of groups with his fellow creatures,
lest?
semantics. I say "democracy" and the next question is: Which, if
it means something to
Let's analyze the two
me; per¬ any, of his God-given rights is
systems,1
haps something quite different to mankind willing to relinquish to ignoring man's frailties for the"
you. I
use
the word "liberty." the group (or any member of the moment.
Your definition may be
Under the capitalistic
complete¬ group) with which he lives? This
system
ly different from mine.
question could be debated for each man acts to serve Lis fellow
.

Even Abraham Lincoln wrestled
with the problem. This is

cerpt

from

one

of

his

an

ex¬

lesser

world

has

I

would

come

ment

that

to

none

eventually we
complete agree¬
of Us willingly

would delegate many such rights

known speeches:

"The

believe

hours.

to others.
never

had

;

example, would

Each

fellow

delegate
good
definition
of
the
word
to anyone (even your best friend)
'liberty', and the American people, control over your wife, your chil¬
you

also

citizens.

is

served,

That

by,

world-

famous slogan of Rotary, "He
who
serves

best

,

a

For

citizens.
his

profits most,"

comes

to mind. What I first
heard it
a

child

I

as

thought it rather silly.

Today I consider it profound, lite

¥

Volume

175

Number 5106

.

The Commercial and Financial Chronicle

.

.

(1527)

33
f

who
der

the

of

private property rights? And
nowhere under God's natural laws
is there authority to establish de-

,

given

his

do

Un-

capitalistic system-every
complete freedom

is

man

to

best profits most.

serves

best, to

his

serve

best,

vices

which

permit

cant to

them) why the capitalistic behavior in the
market place.
I
system
is unsound, reactionary, think
businessmen, like the clergy,
and unfair.
Here they are:
should broaden their
horizons and,
(1) Unfair wages, hours, and joining together, proclaim
throughout the land that God in¬
working conditions.

"legalized

$10 Million Issue of
New Brunswick Bds.

t

a

A Definit on
Funk

1

*

of

plunder"

Capital*

hands

of

differ

and

of

capital

few."

a

I

submit

in

to

under

the

(2)

Injustice

tended

some

—

name

the

is

me

people's prop-

done

their

rent

respectfully

what

other

people
of social security,
tariffs, make too much, some too little.
control, progressive taxation,
(3) Unfair trade practices.
price controls, production controls'(4) Discrimination between em¬
or
subsidies,
ployees.

& Wagnail's defines capi-

talism as "a system that favors the

concentration

of

whether

erty^

Under

the

to

men

own

be

free

decisions and

to

Placed

make

to be re¬

sponsible for the
consequences of
those decisions.

definition,

name-

.

and the true does she resign

ing

Superficial observers think bebusinessmen

cause

have

°r

too

much,

paying too

history of the world—simply be¬

much,

cause

Panning wrongly. They might

decide to take

billion dollars
or capitalists furnish
money, that
rom us and establish a peanut
they are supreme. On the con- farm in Alaska. (Others have tried
trary, they are bound to obey ^
in Afnca.J
If it failed » of
unconditionally

the

money,

captain's" orders. They cannot determine for long what to
produce,
how many to produce, or
selling

prices—the

do

consumers

he

ices for prices it will
pay,

losses, eventually go bankrupt and be completely removed
the

mands

the

Other

scene.

better

in

of

the

we

as

cide which companies

and which

per

consumers

whims
and

do

we

care

past merit
the
If

desert

our

■

,

true

today.
and
serve

If

than

million

a

our.

we

,

We

a

and

do

it

com-

thousand-

we

afe C^P-

only

prosper

cause we serve more

we

prosper.

mousetrap

prosper

lPecause
italistic.

one,

be-

people better

than

others, wfe satisfy their wants,
help them along the way.

we

The same harsh but fair criterion applies to those who sell their

services.
work

Those

who

hardest, do

work

more

pected

of (hem

cannot

help but profit

of

is

than less,
more.

All

getting enough people to

do well what is expected of
them,
.and eventually do it better than

Those

expected.

who

keep it

up

rewarded with greater opportunities—as well as responsibil'iare

ties.
»-

the

-?■

of

.

In

other

driving

words,

it is under

power of

freedom

of

possible

for

exercise

to'.the

competition,
choice, that it is

each

consent

•

integrity of the

v

u

T

1

(rom

-

received

within.

coercion

He

from

/.?£*-;f,-

not

State.

range

of its powers.

there

was

man

such

energy

never

a

As

release

the

as

fill

result,
hu-

world

witnessed before.

had

The

new

type of representative government
they established was built on the

responsibility and independence
forth by Moses, and codified

set

in the Ten Commandments. It

taught

and

practiced

by

And in all their teachings

yhis destiny. / He Has given

mankind the

opportunity to sueceed and the opportunity to /fail,
He has pennitted and .encouraged

was

Jesus,

we

find

nothing to suggest that we set
apart any of our fellow creatures
and delegate to them authority to
control the life, liberty or
property of another.

point-certain
over

They did

not ap-

individuals

as

unconvinced

gods

God.

our

for
of

world

has

depression
of

endeavor

cycles.

Yet

experienced

just

prosperity

and

of

be

the

history.
of

beginnings
Surely the

maximum

does

Human
to

prove

States.

from

recorded

permission

complete free¬
prior to the

United

suclr periods

not

human
such

cause

fears

the

never

real

could

well
And

cause.

fear has

long been the order of
the.day under old world govern¬
mental

and

restrictions,

under

mankind.

economy
recent

the

is

wars,
over

read

interfer¬

normal

market

phenomenon

no

origin.

should

during
controls

Government

with

ence

and

state

Fall of

the Roman Empire."
conclusion, I return to my
friend, the preacher. I must now
In

answer

he

er

LOS

his question about wheth¬
should drop the study of

economics and stick to
religion.
I know now that I was

much

to

^wo

contrast

SyStems.

Now

between

lets

look

man's

Lines
James

F.

have

some acquaintances who
socialists.
I have others who

are

would

but

.

disavow

strongly,

being
argue in

socialists
fav.or

I

think

my

K.

Deckert

ciated

with

Bedford

formerly

has

become

Douglass

for

&

study

nomics.

this
eco¬

I think ihey should seek

unceasingly to learn all they can
about

the'.whole

of

of

government planning for our ,economic lives. Some of these people

in

havior, economie

as

human

we)l

as

Offices

and

He

years

was

Canady

with

Karr, Inc.

RALEIGH, N.
ment
name

of

pany

with

his

HILLS,

Calif.

—

Charles T. Howitt has been added
to the staff of Fabian &
Co., 9500




(which

seem

signifi¬

has

to

do

with

human

offices

business

the

E.

invest¬

in

the
the

firm

Com¬

in

Raleigh, ha

associated

witl

.

Merrill Lynch Adds
(Special

Newman & Co. Formed

LOS

(Special to The Financial Chronicle)

C.

BEVERLY HILLS, Calif.—Jack
Newman

is

curities
316

engaging

business

South

the firm

from

Bedford

I.

the

se¬

offices

Drive

du

at

Wayne

Pont

&

(Special

is

Lewis

become

with

Shearson,

9608

Santa

Mr.

Lewis

Hammill

Monica

was

Hills

thereto

&

Co.,

Boulevard.

California
with

was

will

Sims & Co.

George Yates

Financial

Co._

Chronicle)

Smith

King Mer¬

Co., Inc., 53V2 West Huron

to

be admitted

Admit

to limited part¬

of the New York Stock

Exchange.

George P. Bissell
George

P.

Bissell,

member

of

the

New

and

senior partner of
Laird, Bia& Meeds, passed
away on

sell

Joins

The

nership in Hirsch & Co., 25 Broad
Street, New York City, members

and

Marache,

will

April 17 Rosina W. Eising

formerly Beverly
for Standard In¬

manager
vestment
Co.
of

prior

associated

to

Hirsch
On

HILLS, Calif.—Harry

has

affiliated

Street.

(Special to The Financial Chronicle)

BEVERLY

now

associated with

now

ritt &

E,

is

PONTIAC, Mich.—Archer

and

Harry E. Lewis Now With
Shearson, Hammill & Co.

Chronicle)

Joins King Merritt

Co.

Co.

Financial

Lynch, Pierce, Fenner A.
Beane, 523 West Sixth Street.

previously with

Morgan & Co.

The

Merrill

under

of Newman &

name

Mr. Newman was

Francis

in

to

ANGELES, Calif.—Richarr*

York

Stock

Exchange,

April 2.

(Special to The Financial Chronicle)

CARMEL,
Calif. —Edward
J.
Billings has joined the staff of
George V. Yates & Co., Jorgenson

Cecil E. Abbett Joins

King Merritt & Co.
(Special to The Financial Chronicle)

Building.

LOS

With Farw«ll

Chapman

ANGELES,

E.

Abbett

(Special

to

Th*

Financial

CHICAGO,
Mathews
man

&

is

Co.,

Midwest

with

268

111.

Chronicle)

—

John

Farwell,
South

Stock

La

R.

Chap¬
Salie

Co.

and

Exchanges.

Calif. —Cecil

has

become associated""
with King Merritt & Co., Ine.,
Chamber of Commerce
Building.
He was formerly with Douglass &

Angeles.

reasons

that

Lloyd

—

under

Santa Monica Boulevard.

'

life

been

Lloyd E. Canady & Com¬

own

and

of

C.

resuming

recently
been
Reynolds & Co.

steal,"

endorsement

have

Denburgh &

mercial
Bank
Building.
Mr.
Canady, who formerly conducted

Fabian Co. Adds
(Special to The Financial Chronicle)

BEVERLY

is

business

own

absolute

All

with Van

Own Investment Firm

464

Street, members of the New York

an

busi¬

Lloyd E. Canady Resumes

itua).:
just plain stupid; on the other
I believe, too, that
businessmen
.-tp acquire property as the hand, some are,highly intelligent
should not limit their study to
fruits of their labors.
Is pot. the and, I believe,
completely sincere.
Commandment,"Thou shalt not They all point To a standard set ■that relatively small segment of
are

men

securities

Arthur C. Karr.

are

Treasurer.

asso¬

be¬

spir-

Chronicle)

Karr, Inc.

Co.,

Drive.

many

Van Denburgh &

preacher friend, and

other spiritual leaders
land of outs, should

Financial

President; Vincent F. Perna, VicePresident
and
Secretary;
and
Arthur C. Karr IV, Vice-President

Colthup

Douglass Staff

North

assuming
quickly
that
he
should stick to his religious field.
all

The

in the

engage

ness.

wrong

for

to

ANGELES, Cal.

Street,

Na¬

in

go

par.

—
A. C.
Karr & Co. has been formed
with
offices at 523 West Sixth

BEVERLY HILLS, Calif.—Har¬
lan

of

Perhaps all of us
again "The Decline

senqi-,
premium,• iy

Formed in Los Angeles

Steel

Joins

that
con¬

as

forefathers,

mankind

the

is

course,

system,

with such

dom

birth
the

need

of

by

existed

These

a

be

of

answer,

capitalistic

ceived

pioneers kept government at a
distance. and severely curbed the

*£

ishecessary for him to ful-

The

the

direction

did

the

still

may

planner

principal,
and

(Special to The Financial chronicle)

depression which have occurred."

u

J have at

and

state

my

the

and through the sink¬

par

associated

busi¬

"Well, that may be true,
surely you must blame the
capitalistic system for the horrible
cyclical periods of prosperity and

The early American relied

God

on

Car

to

as

interest

(Special

they Equipment Company of America.

-but

firmly believe He wanted man^ind f0 grow, to learn through
experience, to learn by making
mistakes, and thus to build a better
WOrld.

the

re¬

of

A. C. Karr & Co.

Co.

None

chumps

.or

&

Industrial

and say,

God, and because I

in

sinners

were

of

friends

.

iu-

of

The

direct and unconditional
obliga¬
tions of the Province and will
be

103% to

Free-

tional

1952.

proceeds

generating, trans¬

ing fund at

director

a

1,

the

mission and distribution
system
construction program.
The debentures will constitute

of

Corp. and the

as

May
of

debentures will be advanced to
The New Brunswick
Electric
Power Commission in
connection
with its electric

Col¬

one

few

a

F.

of

and

because

debentures of the Prov¬

due

Di-

man

dignitaries violates

because

of

colleges

both.

Some

per-

'*

T:,

nessmen
—or

personal

:

son

Board

ner

pro¬

ince

mainder

They are redeemable at general
redemption prices ranging from

election to the

in fool¬

condemned

knowri

ever

God.

of

without the loss of the moral and
the spiritual

his -God-

God has given'to everyone
that,
which

of the

sovereign or
inalienable be-

received

the

because

illustrations, silly

a

are

are

its

an¬

nounces

thup. Mr. Col¬
thup is a part¬

Should

of 2^4%

in lawful money of United
of States or, at the option of the
holder, in lawful money of Canada.

Rummel, President

Railroad,

seem, are one whit more ridiculous
than running away from the best
economic system the world has

man

of

of

be

C.

rectors

them

turity $5,000,000 principal amount

any,

Spokane

James

manu¬

of the Ten Commandments?
of these

It

given right.of liberty, .and to reap
at
the
human angle, at
;the just rewards of proper human
frailties and shortcomings,

behavior*?.

the

their faculties?

on

religion

responsibilities
cannot be delegated to
any state

individual■>.„io

fullest

prohibit

and

offering,

annual

International

man

think
ever

fessors

one

than^exr solid rock of individual dignity,

know that the most difficult

us

task

rather

best,

other

no

t

^

free

gtate, but

basic faith

and

the

grants

These

...

was

jandbest
is true

right,
people—we

serve

petitors,

•

ke

a

both,

the

priced

1,000

we

ago

make

we

is

better

to-

us

old purveyor.

years

If

it

0f

buyxt,

or

in

cause

about the

cheaper,

or

sane

building that collapsed?
intelligent people

a

you

would

follows, then, that
to life, liberty,
pursuit of happiness can-

no|-

see

■

old

100

and

iota

Do

In summary, I believe that all
authority is derived from God and i

and

of

we

•••,?mousetrap story

,,

The

full

offered to

is

better

T

rights of

changeable

When

an

signed

Summary

govemed."

as

vested: interests of;
from whom we buy.

something

morrow

We

or

persons

we

bosses

want

we

not

fail.

fancies,

unpredictable.

de-

is

the

condemn the architectural
pro¬
fession because the ABC Firm de¬

,.v'!

T

shall_ pros-

shall

are

and

something

who

consumers

there

,,

resides

.

is

choice.
/

is,
replace him.

.

It

any

Fred

—

because you could prove
that Dr. Jones erred and his
pa¬
tient died?
Would

They either

^

fal^

de-

captains—that

;

errors.-

who

men

satisfying the

consumers—will

moment

a

stupid to condemn

serve some be closed because some of
he will Part of humanity and serve it well, ; have permitted undesirable

suffer

did

be

Inc.

$4,000,000 will be used, together
with $1,000,000 from the
Provin¬
cial Sinking
Fund, to pay at ma¬

payable

the

Colthup Director

enthusiastic supporters. But under facture of automobiles
*he capitalistic system men reap some drivers wreck them
directly the penalties of their own hardy driving? Should all

the

from

consider

blame

heritage.

errors.

surgery

sysJem; Little wonder it has its

does

not obey the orders of
public, if he does not serye
the public by
manufacturing what
it likes, or offer
goods and serv-

Let's

jther purpose The penalty of
failure does not exist under that

that,

Every businessman knows that if

erroneously

wouldn't it

be no fault of
and they would take anbillion next year for some

theirs
°ther

.

a

it would

course,

/'consumer

we

system for human

.

priceless

individual in the

as a penalty for mistakes of buy-

herself and reveal her secret."

Co.

associates made public
offering on
should all proclaim that it April 8 of $10,000,000 Province of
is an act against
God for men to New Brunswick,
Canada, 4%%
pass laws which
destroy individual sinking fund debentures, due April
liberty, which deprive persons of 1, 1972, at a price of 98.702% and
responsibility for their own acts accrued interest.
or their own
Of the proceeds of the
welfare.

—

pure,

&

We

economy of social(5) Unnecessary duplication of
jsm> looting is not only permitted effort, such as two railroads
oper¬
ly, that "capitalism is a system kut
legalized and encouraged. Un-» ating between two cities when one
governed by the market
econder its system the harder a man could
carry the load.
omy."
Under this system, howWOrks, and the better he serves
You have heard all of
ever
you define it, the real boss
these, I
his
fellow man
the
As Ben
more
he am sure.
Most everyone is
Moreell, Chairman of
is the consumer'. Even
against the
though he is penalized! Yet these same so—
Jones &
"Sin." At first glance these
Laughlin Steel Corp.,
is a harsh boss, he is a just one.
ideas
eialists tell us that they act
said
solely sound logical and humane.
recently, ".
let us resolve
But if
Everyone of us—every citizen in for the sake of
that
"humanity." They you examine them
henceforth we shall never
this land—is collectively the capcarefully, yOu
use
words like "liberty" to de¬
again
render
unto Caesar those
will find that no one of
them has
tain, judge, and jury of the capi- scribe their
curtailment
of the
anything whatever to do with the things that are God's, for that is
talistic system. The laws of nature
greatest liberty any man can enprecisely
what
we
do when we
system. They all have to do with
prevail. As Goethe wisely said:
j0y; that is, the product of his man's failure
yield to political rulers the
and
power
imperfections. to
"Nature understands no jesting, own labors.
administer moral law."
They say in effect I think the worst
thing that could
She is always true, always
Let us resolve instead
serious, (though, of course, never openly) happen in the
that each
United States (or
always severe; she is always right, that they "know better how to
one of
us, every man, shall rec¬
any other country for that mat¬
and the errors and faults are aluse
your money and mine than
ognize
his
rights as God-given,
ter) would be the overthrow of a
ways those of man.
The man in- we do." They gloss over the fact
exercise
them in his own
system ■. under
which
we
good
have
capable of appreciating her she that they have no captain, the
conscience, and stand steadfast in
achieved the greatest
dignity and their
despises and only to the apt, the consumer, to leave them stranded
defense as his most
freedom for the
accurate

more

a

Market:

on

Halsey, Stuart

Pjlor

Harris, Upham &
Jher.eio he conducted

investment

business

in

Go.
his
Los

40

The Commercial and Financial Chronicle

(1523)

The following

Indications o! Current

week

Business Activity
STEEL INSTITUTE:
steel operations (percent of capacity)

AMERICAN IRON AND
Indicated

Equivalent to—
ingots and castings

(net tons)

Steel

or

Latest

Previous

Month

Week

Week

Ago

-Apr. 13

Not Avail.

—Apr. 13

Not Avail.

Year

Ago

on

102.3

101.3

102.1

oil

and

average

gallons each).—
—-———Mar.
Crude runs to stills—daily average (bbls.)
—Mar.
Gasoline
output (bbls.)
.————-——
— Mar.
Kerosene output (bbls.)
——-—
-Mar.
Distillate fuel oil output (bbls.)——
Mar.
Residual fuel oil output (bbls.)
.— Mar.
Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at———-—.Mar,
Kerosene
(bbls.) at
Mar.
fuel oil

Residual

fuel

(bbls.)

(bbls.)

oil

at
at

—

6,401,650

29
29
29
29
29
29

29
29
Mar. 29
Mar. 29

AMERICAN

OF AMERICAN RAILROADS:
freight loaded (number of cars)

Revenue

freight received from connections (no.

2,114,000

2,120,000

2,045,000

Total

(M

gas

Natural

CONSTRUCTION

ENGINEERING

—

6,422,600

6,367,200

6,041,400

Mixed

Total

construction
construction

U. S.

Private

Public construction

116,590,000

6,542,000

6,816,000

21,837,000

21,818,000

2,750,000

2,623,000
9,544,000

22,281,000
2,359,000
11,072,000

20,398,000
2,828,000
9,365,000

—

9,147,000

January

TION

IN

U.

142,787,000

142,433^0

New

14,718,000

14,598,000

16,683,000

13,285,000

New

45,109.000

46,188,000

52,489,000

43,170,000

Additions,

35,593,000

36,094,000

36,441,000

37,282,000

anthracite

SYSTEM—1935-39

Electric

(in

output

(tons)—

94,277,000

101,826,000

108,865,000

110,650,000

63,891,000

52,549,000

25,314,000

38,932,000

30,386,000

29

9,810,000

•9,555,000

10,290,000

10,259,000

—.Mar. 29

697,000

680,000

793,000

539,000

Mar. 29

131,500

•132,300

137,300

138,500

RESERVE
-Mar. 29

292

273

245

258

Apr.

INDUSTRIAL)

AND

—

DUN

$345,654,000

Apr. 3

BRADSTREET, INC.

§7,200,000

steel

Finished

lb.)

(per

(te-

PRICES

METAL

(E.

M. J.

&

1
1

MOODY'S

PRICES DAILY AVERAGES:
Bonds—————

BOND

Apr.

Average corporate
Aaa

Apr.

-

Aa
-

—

Baa

Railroad

Group

Utilities

Public

Industrials

Apr.
Apr.

Group

Group

6,735,844

164

170

195

4.131c

4.131c

4.131c

185

•

$52.72

$52.72

$52.72

$52.69

$42.00

$42.00

$43.00

—.

Apr.

$1,991

$2,193

1,556

1,397

1,614

784

668

862

710

600

735

62

55

Average corporate
Aaa

——

dwelling

Aa

.—.———

Railroad

Public

Stores,
Other

(tons)

utilities

DRUG

PAINT AND

other

1926-36 AVERANGE

121.500c

121.500c

19.000c

19.000c

19.000c

17.000c

Other

18.800c

18.800c

18.800c

16.800c

Military

19.500c

19.500c

19.500c

17.500c

Highways

99.46

96.63

Miscellaneous

109.60

112.19

114.08

113.89

115.63

All

112.75

114.85

108.52

111.44

103.80

107.44

106.92

106.56

109.24

109.42

109.06

112.19

113.50

113.50

113.31

115.24

other

March

DEALERS

construction

Private

2.53

State

3.17

3.17

3.19

3.05

Federal

2.94

2.95

2.96

2.87

3.02

2.91

3.22

3.25

3.09

3.52

3.31

Oven

3.33

3.34

3.36

3.21

Beehive

Apr.
Apr.

8
8

3.19

3.20

3.22

3.05

2.98

2.98

2.99

2.89

Apr.

8

433.6

437.5

437.2

521.3

v:

84

85

83

98

380,443

391,531

355,197

704,936

141.0

140.8

142.7

154.3

„

ooke

Odd-lot

sales

by

dealers

Number

of

orders.—

Number

of

shares

Dollar

(customers'

Total

Odd-lot

868,745

886,133

662,756

$42,237,831

$42,439,981

$27,596,790

24,650

25,355

23,518

20,737

sales

Mar. 22

131

192

217

317

Customers'

other

sales

Mar. 22

24,519

25,163

23,301

20,420

Mar. 22

684,140

706,552

683,497

564,133

shares—Total

Customers'

short
other

Customers'

Dollar

sales

Other

sales

Round-lot
Number

ROUND-LOT

SALES

ACCOUNT

round-lot

Short

sales

Other

sales

Total

sales

ROUND-LOT

ON

THE

7,441

5,691

12,087

OF MEMBERS
sales—

FOR

purchases

176,350.

197~910

18jf,160

15~5~870

Beverages

Mar. 22

311,620

358,350

353,740

279,640

400,320

216,920

444,650

7,533,490

5,556,030

10,854,780

_Mar. 15

7,790,690

7,933,810

5,772,950

11,299,430

538,020

1,194,440

137,370

111,570

209,790

618,120

657,210

430,450

1,033,750

—Mar. 15

761,380

794,580

542,020

1,243,540

Mar. 15

202,100

214,200

109,610

311,040

sales

initiated

on

the

Short

sales

Other

sales

_L
r———

Total

Other

Other

19,400

17,400

13,300

30,600

234,760

210,800

105,000

325,580

l5

254,160

228,200

118,300

356,180

Mar> 15

280,534

324,155

222,586

403,500

Mar

transactions initiated

Total

Mar. 15
—Mar. 15

sales

Total purchases
Short sales

off the floor-

—

l5

sales

Mar

sales

---ZZZZZZZZZZZZZZM'ar.

T

Other
Total

sa es

sales

412,229

625,637

274,587

656,125

1,372,615

870,216

1,909,980

Mar. 15

203,130

306,610

149,040

328,710

Mar

LABOR—(1947-49

=

NEW

SERIES

—

products
Processed foods

1,224,639

1,341,807

785,867

1,927,135

15

1,427,769

1,648,417

934,907

2,255,845

^
——

—

All commodities other than farm
and

available,




i! Includes

-Apr

.mm

f\.

i

#

foodsZZZZZZZZZZZZApr'
460,000 barrels

of

oils—

and

sweets
—

.

'—

——

refrigerators—

and

electricity-

and

Other

fuels

furnishings

of

———

285

251

255
52

89

75

135

125

120

35

30

■'43
40

26

21

132

115

41

85

55

110

48

44

53

$788,429

$1,406,455

549,395

414,397

884,358

493,456

374,032

522,098

365,223

222,341

344,574

123,233

151,691

177,524

6,366,721

6,804,106

6,008.154

5,769,909

6,167,562
636,544

5,393,562

596,812

1,765,363

1,810,405

1,068,698

$19,763

•$20,120

13,207

♦13,315

7,181

•7,322

7,354

3,927

•3,962

3,993

3,361

609,592

$20,167

13,386

;

3,254

•3,360

6,026

•5,993

6,556

•6,805

6,781

4,003

•4,253

4,241

1,450

•1.445

1,103

•1,107

6,032

1,433

1

1,107

SALES

STORE

273.8

271.2

215.8

204.4

166.5

184.3

179.8

223.5

241.4

224.3

347.1

346.7

342.7

150.9

155.3

benefits

Matured

185.9

186.0

204.6

202.0

140.2

139.7

134.0

145.3

145.0

143.9

97.9

97.6

97.2

206.7

206.8

204.5

156.3

156.3

152.8

208.6

209.1

209.7

170.2

169.6

163.2

105

♦105

105

92

♦83

93

(FEDERAL RE¬
Avcrage=100

Z

-

endowments

*

payments

Disability
Annuity

176.5

185.1

204.3

INSURANCE—BENEFIT PAYMENTS TO
POLICYHOLDERS—INSTITUTE OF LIFE
INSURANCE—Month of February:

Death

187.1

270.8

217.0

LIFE

payments
values

Surrender

dividends

.

~

—

—

—

Total

EARNINGS

RAILROAD

of

Total

108.1

Operating

108.3

108.9

Taxes

111.5

112.5

Net railway

112.9

113.0

Net

income

♦Revised

OF

■

$129,006,000
41,556,000

$148,934,000
38,984,000

$167,995,000
46,560,000

8,273,000
28,819,000

9,887,000
38,294,000

7,959,000
29,170,000

50,648,000

52,774,000

46,564,000

53,980,000

73,992,000

49,887,000

$329,638,000

$389,502,000

$304,142,000

$844,966,485
649,686,754
76.89%

$867,034,111
685,369,358
79.05%

$715,825,778
609,323,570
85.12%

$105,892,108
75,894,510
50,000,000

$100,806,300
66,066,877
42,000,000

$72,276,680
18,977,500
13,000,000

CLASS I ROADS
AMERICAN RRS.)—

—

February:

operating
operating
ratio

111.7

107.6

§ Preliminary figure.

37

March:

Adjusted for seasonal variations
Without seasonal adjustment-

111.4

foreign crude runs.

5

584

66

SYSTEM— (1947-49

SERVE
Month

Total

'

"•

————-—

(ASSOCIATION

s

Meats

tNot

15

OF

__

WflOfo

♦Revised.

DEPT

vegetables-

and

electricity

House

products———
—

and

Month

commodities

Farm

S

190):

Commodity Group—
All

U

88,320

567,805

1,268,254

ZZ.ZZZZZZZZZZZZZZZmS

PRICES,

24,170

250,417

15

—_—

sales

WHOLESALE

151,840

473,797

5

594

62

15:

;

Sugar

Policy

«hJUrC?aSeS

Short

40,470
371,759

Mar. 15

Total round-lot transactions
for account of members—
"

'«■

floor—

6

691

CITIES—

products

DEPARTMENT

834,260

143,260

Mar. 15

39
193

MODERATE

of Feb.

as

Miscellaneous

Mar. 15

purchases

FOR

LARGE

IN

—

Clothing

sales

transactions

INDEX

Rent

sales

Total

Meats

Fruits

Other

Total

——:

bakery

and

22

265,040

27

196

Cereals

Eggs

7,525,650

26

27

31

211

183.8

155,870

Short

Other

-83

264

226.0

185,160

785,620

75

250

190.6

197,910

Mar. 15

20

80

272

189.1

176,350

Mar. 15

24

232.4

552,046

—

25

25

190.9

$23,049,104

_Mar. 15

—

,

676,056

MEM¬

OF

32

187.9

Gas

ACCOUNT

32

227.5

Fuel,

„:

TRANSACTIONS

16

33

foods

$30,255,711

(SHARES):

-

items

All

700,861

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which
registeredTotal

All

$30,422,367

TRANSACTIONS

__—

credit

FAMILIES

679,959

YORK

NEW

-

PRICE

Fats

ROUND-LOT STOCK

8

s

—

1935-39=100—Adjusted

dealers—

STOCK

26

8

RE¬

——-

credit

INCOME

Mar. 22

EXCHANGE AND

35

27

short-term

29:

payment loans—.——

$29,231,928

;

FEDERAL

Feb,

of

accounts

Service

Dairy

shares

THE

Estimated

as

_

Mar. 22

Mar. 22

sales

29

$1,042,851

(net tons)

credit

Mar. 22

iMar.

purchases by
of

4,181

30

45

7

—1_

credit

Single

dealers—

by

shares—Total

of

Bhort

FOR

!

sales

...

sales

Number

Total

Mar. 22

sales

value

Round-lot

TOTAL

sales

of month

credit

CONSUMER

Mar. 22

short

of

129

of

credit-

consumer

Automobile

23,117

830,857

$37,899,500

Customers'

Number
.

32,096

31,399

Mar. 22

.Mar. 22

.

119

15

—T

OF
—

millions

Charge

purchases by dealers (customers' sales)—
of orders—Customers' total sales

83

123

3

—„.

at end

Noninstalment

29,249

38

5

tons)

(net

SYSTEM
in

Instalment

purchases)—

Number

—i.

tons)

GOVERNORS

Loan

STOCK

Mar. 22

123

35

43

EN¬

Other

COMMISSION:

value

73

36

CREDIT OUTSTANDING—BOARD

CONSUMER

credit

———Mar. 29
Mar. 29

Y.

79

61

.—

tons)

(net

Oven coke stocks

257,563

199,579

N.

143

MINES)—Month of Feb.:

OF

(net

coke

236,532

200,560

ON

207

9

—

Production

SERVE

188,833

EXCHANGE

212

51

municipal-

and

(BUREAU

COKE

—

Month

—

construction——

2.73

3.02

CONSTRUCTION

construction

S.

2.70

204,237

SPECIALISTS

AND

EXCHANGE—SECURITIES

16

400

(000's omitted):

U.

2.68

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

13

399

62.

•

NEWS-RECORD

GINEERING

Total

3.50

4

public

61

12
414

12

public-service enterprises
and
development——

ENGINEERING

CIVIL

3.21

Apr.

water

and

109.97

104.14

INDEX—

—

114.27

189,705

PRICE

and institutional—
building

an$ naval facilities—

109.97

112.75

—

building

nonresidential

Conservation

109.06

—

'

building

Hospital

3.02

100

=

utilities

private

121.500c

97.17

telegraph

and

construction

Public

150.500c

198,922

REPORTER

—,

Other public

Sale

OIL,

institutional

and

Educational

——--——Mar. 29
Mar. 29
—

building

construction

Public

OF

Percentage of activity——-—
Unfilled orders (tons) at end of period

garages

recreational-

and

24.425c

ASSOCIATION:

(tons)

received

Orders

Production

and

Miscellaneous

3.50

INDEX

COMMODITY

and loft buildings.

nonresidential

Social

8

Industrials Group
MOODY'S

office

restaurants,

Religious

8
8

Group

NATIONAL PAPERBOARD

.

Warehouses,

Apr.
Apr.

Group

Utilities

(nonfarm)

Industrial

—Apr.

Baa~ZZZ—————————I

millions):

alterations

Nonhousekeeping
building

27.425C

109.60

8

(in

OF

(nonfarm)

Nonresidential

27.425c

107.09

Apr.

DEPT.

units

and

27.425c

104.14

Apr.

S.

March

of

building

Additions

All

$792,043

$426,520-

$2,247

etc—

construction

Industrial

8
8
8
8
8

$505,337

construction

new

New

'

Government Bonds

U. S.

S.
of

100,839

24.200c

8

DAILY AVERAGES:

YIELD

BOND

U.

Month

'

CONSTRUCTION—U.

Public

MOODY'S

155,180

271,993

24.200c

-

234,962

419,161

24.200c

112.75

233,741

224,454

59,455

alterations,

24.200c

109.24

4,533,443

154,900

30

$42.00

97.28

8
8

Apr.
Apr.
Apr.
Apr.

—

A

7,496,710

4,922,364

5,255,574

VALUA¬

THE

—

5,645,436

154,693

68,966

Sewer

8
8
8

—•—Apr.

OF

LABOR

5,310,329

4,931,182

145,054

Nonresidential

U. S. Government

Ago

222,011

Residential

2
2
2
2
2
2

refinery at-L-———
..Apr.
Export refinery at—..——2--—Apr.
Straits tin (New York) at—. 1—
Apr.
Lead (New York) at
Apr.
Lead (St. Louis) at
—..—
——Apr.
Zinc (East St. Louis) at
-Apr.

PERMIT

AREAS

Commercial

QUOTATIONS):

Electrolytic copper—
Domestic

therms)

therms)

OF

LABOR—Month
Total

142,501,000

7,263,009

4.131c

1

Apr.
Apr.
Apr.

;

Pig iron (per gross ton)_2——i——steel (per gross ton)——

Month

144,812

Telephone

Scrap

Year

Month

291,559

Farm

AGE COMPOSITE PRICES:

IRON

of that date:

Previous

month

Educational

5

&

are as

Latest

nonresidential

Hospital

kwh.)——

000

(COMMERCIAL

FAILURES

703,308

149,582,000

——

the

either for the

are

residential

Private

INSTITUTE:

ELECTRIC

EDISON

755,435

690,900

134,179,000

Apr,
Apr.

SALES INDEX—FEDERAL
AVERAGE = 100
.

DEPARTMENT STORE

755,624
.

191,279,000

Apr.
Apr.

—

—-—•

(tons)

678,687

154,375,000

j
3
3
3
3

(U. S. BUREAU OF MINES):
and lignite (tons)——.——— Mar.

Beehive coke

719,921

$236,778,000

Apr.

For

construction

building

Residential

Bituminous coal

Pennsylvania

725,423
672,762

(M

omitted):

(000's

8,845,000

All

sales

(M

DEPT.

147,596,000

$296,645,000
147,063,000

——

——

—

therms)

(M

gas

URBAN

S.

8,846,000

$271,637,000
137,458,000

——

Federal

COAL OUTPUT

sales

CONSTRUCTION

BUILDING

149,631,000

ENGINEERING

municipal

and

State

ASSOCIATION

sales

gas

9,704,000

Mar. 29
of cars) —Mar. 29

NEWS-RECORD:

of quotations,

cases

therms)

gas

6,381,000

9,712,000

ASSOCIATION

CIVIL

in

or,

GAS

BUILDING
Revenue

Thursday, April 10, 1952

of February:

(bbls. of

42

Distillate

that date,

Manufactured

INSTITUTE:
condensate output—daily

.

Dates shown in first column

month available.

month ended

or

.

statistical tabulations cover production and other figures for

PETROLEUM

AMERICAN
Crude

latest week

.

revenues
expenses

operating
after

figure.

*

income before charges
(est.)

charges

UDeficit.

Number 5106

^Volume 175

.

The Commercial and Financial Chronicle

^.»

»

(1529)'ill

Securities
Alabama

.

Power Co.

INDICATES

Now in

(4/22)

•

Canadian

Fund, Inc.

(Md.)
(4/16)
800,000 shares of capital stock (par $1).
per share. Proceeds—For invest¬

March 21 filed $12,000,000 first mortgage bonds due 1982.
Proceeds—For construction program. Underwriters—To

Price—Probably $12.75

be

ment.

determined

by

competitive

bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.;
Kuhn, Loeb & Co.; Lehman Brothers; The First Boston
Corp.; Blyth & Co., Inc.; Union Securities Corp., Equit¬
able Securities Corp. and Drexel & Co.
(jointly); Shields
& Co. and Salomon Bros. & Hutzler

(jointly); Harriman
Ripley & Co., Inc. Bids—To be received up to 11 a.m.
(EST) on April 22 at office of Southern Services, Inc., 20
Pine Street, New York 5, N. Y.
At Allied Drugs, Inc., Hackensack, N. J.
April 2 (letter of notification) 336 shares of class A stock
(no par) and 1,623 shares of class B stock (no par),
including rescission offer of 42 class A and 171 class B
shares.

Price—$100

per

share.

Proceeds—For working

capital.
Office—255 Herman Street, Hackensack,
Underwriter—None.

N. J.

stock (no par)
Employees Stock Op¬
tion Plan.
Price—At a fixed price based on market.
Proceeds—For general corporate purposes. Underwriter
common

reserved for issuance pursuant to

—None.

A* American Bankers Life Assurance Co.

of Florida

March 28 (letter of notification)

14,600 shares of class A
common stock
(par $10).
Price—$20 per share.
Pro¬
ceeds—For working capital.
Office—343 N. E. Second

Avenue, Miami, Fla.

Underwriter—None.

of

(letter of notification)
stock.

common

Proceeds

Underwriter—Hooker
•

American

March

28

filed

to

be

—

an

To

estimated $67,883.50
stockholder.

selling

Fay, San Francisco, Calif.

Rubber Co.

shares of preferred stock or two shares of
held (with oversubscription

stock

common

writer—Blair, Rollins & Co. Inc., New York.
American Machine & Foundry Co.,
to

be

offered

N. Y.

common

in

(B. T.), Inc., New York

(par $1).

Price—$8 per share.

company.

Mines, Ltd., Toronto, Canada
675,000 shares of common stock (par $1).
Price—$1.25 per share. Proceeds—For development ex¬
filed

and

penses

general

Frank P. Hunt &

corporate

common

Proceeds—To Eli¬

zabeth M.

Blatner, the selling stockholder. Underwriter
■—None, but Bache & Co., New York, may act as broker.
A Bell & Gossett Co., Morton Grove, III.
March 28 (letter of notification) 1,000 shares of

Merrill

(no par).
by amendment. Proceeds—From

&

Lynch, Pierce, Fenner & Beane and R.

S. Dick¬

Co., Inc., New York.

Carpenter

(L.

Carpenter Paper Co

& Co., Wharton, N. J.
March 20 (letter of notification)
5,000 shares of common
stock (par $1).
Price—At the market.
Proceeds—To
Jerome L. Long, the selling stockholder.
Eisele & King, Libaire, Stout &

Underwriter^—

Co., New York.

Carpenter Paper Co., Omaha, Neb.
April

(Bids

held.

Proceeds—To

(Morgan

to

be

April 23, 1952
Cutter

Laboratories, Berkeley, Calif
(Blyth

stock

retire

(par $1).

bank loans.

repay

Price—$5

indebtedness

Central

Oil & Gas

April

19

1,

filed

Stone & Co.

1964.

(First

&

Co.,

-1

for

and

share.

per

Office—

Worth, Texas. Underwriter—None.

Continued

on

page

First

Boston

Corp.)

1952

(Morgan

Stanley

&

Co.

1$
Common

and

Clark, Dodge & Co.)

Southern Union Gas Co., Dallas, Tex
(Offering

to

*

Common

stockholders)

April 25, 1952
American Hard Rubber Co._

Common;

(Blair, Rollins & Co. Inc.)

(Blair, Rollins & Co., Inc.)

April 29, 1952
Bridgeport Brass Co., Bridgeport, Conn
(Hornblower

&

Weeks

(Paine,

and

(Steele

common

Webster

PfcL

Securities

Corp.)

Com.

Webber, Jackson & Curtis)

Common

(W. E. Hutton & Co. and Craigmyle, Pinney & Co.)

Union Electric Co. of Missouri

Bonds

(Bids to be invited)

April 30, 1952
First National Bank of Portland

—Common

(Offering to stockholders—not underwritten)

May 6, 1952

42

(Bids

11:30

a.m.

Bonds & Debsc
EST)

England Electric System

&

(Bids

11:30

Iowa Power & Light Co

Co.)

Bonds

May 15, 1952
Metals & Chemicals

11:30

Debenture*
EST)

a.m.

Gas

Common

Peabody

Southern California Edison
(First Boston Corp.

Common

Light Co
(Bids

,

Co

Common

Common

(Bids

noon

EST

and

Co.

Lynch,
8.

R.

Pierce,

Dominick

&

&

Co.,

&

Beane

(Kidder,

8 filed 125,732 shares of cumulative preferred
(par $50-convertible through May 1, 1962) to be
offered for subscription
by common stockholders of
record April 29 at rate of one preferred share for each

Gustin-Bacon

Peabody

&

Manufacturing
(Morgan

Stanley

(Butcher

&

Sherrerd

and

be supplied by amendment.
Proceeds—To redeem
outstanding 3%% serial debentures and repay 2lk%
notes. Underwriters—Hornblower & Weeks and
Stone &

on

Bonds & Stock

bonds;

10:30

a.m.

June 24,

1952

(Bids

Invited)

EST

on

stocks)

to

be

July 1, 1952
(Offering

to

Common

stockholders)

.

July 8, 1952
Georgia Power Co

Common

Bondm

(Bids

to

be

invited)

Co.)

Preferred

Nesbitt,

Service Pipe Line Co

■—To

,

Co.)

International Utilities Corp

Price

1952

,

Illinois Bell Telephone Co

Debentures

Co
&

and

Inc.)

Cornell-Dubilier Electric Corp

stock

June 10,

,

Bonds

Dominick)

Common

Fenner

Dickson

invited)

Gulf Power Co

Common

—

Carolina Power & Light Co
(Merrill

-Bonds
be

Kansas Gas & Electric Co

(Stone & Webster Securities Corp. and White, Weld & Co.)

(Kidder, Peabody &

to

Co.)

&

Tennessee Production' Co.-

supplied

Debentures

May 21, 1952
Iowa Power &

and Harris, Hall & Co. Inc.)

Canadian Fund, Inc.-

1952

Co

(Bids to be invited)

—Equip. Trust Ctfs.
CST)

noon

South Carolina Electric & Gas Co
(Kidder,

Common
Co.)

& Co.)

Illinois Central RR
(Bids

&

May 20,
National Fuel

Crystal Dairies, Inc
(Hirsch

Corp.
(Beer

System, Inc
(Bids

Daitch

Common

(Smith, Barney & Co.)

CST)

a.m.

Common.

-

(Bids to be invited)

Common

Wisconsin Power & Light Co

due

Thomson & Co., Ltd.)

,

(Morgan Stanley

-

&

Debentures

Co.)

April 17, 1952

Webster Securities Corp., New York.

General Gas

Corp

Common

(Kidder,

A Broadcasting Co. of the South, Greenville, S. C.

Peabody

&

Co.)

Hoberg Paper Mills, Inc

April 2

(letter of notification) 8,000 shares of common
stock (par $7,50).
Price—$21.50 per share.
Proceeds—
For working capital.
Address—P. O. Box 660, Green¬
ville, S. C.
Underwriters—Alester G. Furman Co. and

(Robert

Ralston

Purina

W.

Preferred

Baird

&

Co.,

Inc.)

Co

Debentures

(Kidder, Peabody & Co. and Goldman, Sachs & Co.)

San

Francisco Brewing Corp

Kenry T. Mills, both of Greenville.
A Builders Iron Foundry, Providence, R. I.
March 27 (letter of notification) 700 shares of common
stock (no par).
Price—$31 per share.
Proceeds—To
Zechariah Chafee, Jr., the selling stockholder. Under¬
writer—Brown, Lisle & Marshall, Providence, R. I.

&

Cambridge, Mass

Southwest Natural Gas Co

New

April 16, 1952

stock held.

Stone

May 14, 1952

Great Western Petroleum Co

debentures

1952

May 8, 1952

NEW ISSUE CALENDAR

April




and

Case (J. I.) Co., Racine, Wis

April 15, 1952

common

Preferred
Corp.)

April 24,

com¬

Proceeds—To

equipment.

new

-

Corp.

one-half shares of

Common

&

Dominick)

Boston

Inc.

common

A Bridgeport Brass Co., Bridgeport, Conn. (4/29)

and

&

Texas Electric Service Co.—

7

by amendment.
Proceeds—To repay short-term loans, and for other cor¬
porate programs.
Underwriters—Straus, Blosser & Mc¬
Dowell, Chicago, 111. Offering—Expected this month.

seven

Corp.)

Airlines, Inc.

Columbia Gas

be

Securities

-Debs.
(Dominick

Under¬

(letter of notification) 2,000 shares of common
(par $1) and 500 shares of 5% cumulative preferred
(par $100). Price—At par. Proceeds—For equip¬
ment and operating requirements. Office — 6109
Camp
Bowie Blvd., Fort Worth, Tex. Underwriter—None.

subscription by stockholders of
Price—$5 per share.
Proceeds—For

Price—To

Adamex

Inc.

(Blyth

Underwriter—Tucker, An¬

convertible

Common

and

Rochester Telephone Corp

stock

Underwriter—Tucker, Anthony &

$2,000,000

Common

Inc.)

Property Management,

Feb. 21

400 shares of common
Price—At market (estimated at

Bingham-Herbrand

Co.,

April 28,

Meacham Field, Fort

Address—P. O. Box 1846, Charlotte 1,
Underwriter—None.

March

&

Lone Star Cement Corp

National Research Corp.,

working capital.
N. C.

—Common

Co.)

Central Airlines, Inc., Fort Worth, Tex.
March 24 (letter of notification) 27,750 shares of

offered for

1.

&

Southern Union Gas Co., Dallas, Tex.—Debs. & PfdL

cents).
share).
Proceeds—To Edward J. Dinkel, the

April

Stanley

Co., Denver, Colo.
April 2 (letter of notification) 47,997 shares of common
stock.
Price—At par ($1 per share). Proceeds—To ac¬
quire and develop oil properties. Office—4131 East 16th
Avenue, Denver, Colo. Underwriter—None.

A Belvedere Hosiery Co., Charlotte 1, N. C.
April 4 (letter of notification) 10,000 shares of common
record

EST)

Common

New York.

Co., New York.

stock

a.m.

Pennsylvania Salt Manufacturing Co

(4/22)

A Centennial Oil

of notification)

selling stockholder.

Common

11

1

(J. I.) Co., Racine, Wis. (4/24)
April 4 filed 377,058 shares of common stock (par
$12.50)
to be offered for
subscription by common stockholders
of record April 24 at rate of one new share for each
five

A Belle Isle Corp., N. Y.
(par 20

Common

Tucson Gas, Electric Light & Power Co.—Common

working capital. Underwriters—Kidder, Peabody & Co.,
New York, and Kirkpatrick-Pettis
Co., Omaha, Neb.

(par 20 cents).
Price—At market (estimated at
$3.371/2 per share.
Proceeds—To Winfield A. Huppuch,

per

Kirkpatrick-Pettis & Co.)

Gulf States Utilities Co

filed 60,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

stock

$3.25

and

(Hornblower & Weeks, Harriman
Ripley & Co., Inc. and
Blair, Rollins & Co., Inc.)

April £4, 1952

(letter

Common

(Kidder, Peabody & Co.

(Hayden,

E.)

Chicago, pi.

A Belle Isle Corp., N. Y.
April 3 (letter of notification) 3,500 shares of

7

EST)

(Blyth & Co., Inc.)

common stock, plus funds from
private sale of
50,000 shares of $5 cumulative preferred stock (no par)
for $5,250,000, for new
construction.
Underwriters—

(par $5). Price—At market (approximately $27.25
share). Proceeds — To R. Edwin Moore, the selling
stockholder.
Underwriter—Ames, Emerich & Co., Inc.,

stock

a.m.

Drilling & Exploration Co., Inc

stock

April

11

of

per

2nd, the selling stockholder.
thony & Co., New York.

Bonds

„

(Bids

Husky Oil Co

Co., Inc., Rochester, N. Y.

Power & Light Co.
(4/16)
March 31 filed 200,889 shares of common stock

Price—To be supplied

REVISED

April 22, 1952

Carolina

sale

ITEMS

Alabama Power Co

Underwriter-

purposes.

stock

March 28 (letter of notification) 9,670 shares of
stock

investment

Cardiff Fluorite

Feb. 21

mon

stock (no par)

exchange for International Cigar Ma¬
chinery Co. capital stock not already owned by Ameri¬
can.
Dealer-Manager—Reynolds & Co., New York.
Babbitt

end

-

PREVIOUS ISSUE

writers—Morgan Stanley & Co. and Clark, Dodge & Co.,

privileges); rights to expire
about May 12. Price — To be supplied
by amendment.
Proceeds—For plant additions and construction. Under¬

March 27 filed 191,600 shares of

Closed

—

Underwriters—Kidder, Peabody & Co. and Dominick &

shares

(4/25)

96,655 shares of common stock
(par
offered for subscription by stockholders
April 25 at rate of one new share for each four

$12.50)
about

Hard

&

Business

A Case

A American Brands Corp.
March 20

13 filed

Dominick, New York.

son

At Aluminum Co. of America
April 1 filed 489,073 shares of

March

ADDITIONS

SINCE

Common

(Blyth & Co., Inc. and Conrad, Bruce & Co.)

April 21, 1952

County Gas Co

Preferred & Com.
(Allen

&

Co.)

New York.

'

Boston

Philadelphia

Pittsburgh

San Francisco

"

New
:

*

»

Jersey Natural Gas Co

•'<«

(See

County

Gas

Preferred & Com.
Co.

above)

Private Wires to all

offices

Chicago

Cleveland

42

The Commercial and Financial Chronicle

(1530)

Underwriter—Blyth & Co., Inc., San Francisco and New
'
'

Continued from page 41

$1.25

per share).
derwriter—None.

York.

_

Central

March

Oklahoma

19

Corp.
50,000 shares of com¬

(letter of notification)

stock

mon

Oil

mately $2 per share).
Proceeds—To
selling stockholder.
Office — Braniff

tgity, Okla.
ir Coca

(approxi¬
Metz, the

Price—At market

(par 10 cents).

M.

A.

Bldg., Oklahoma

Underwriter—Israel & Co., New York.

Cola

Bottling Co. of St. Louis
March 31 (letter of notification) 3,917 shares of common
stock (par $1) to be offered to
employees. Price—$21
per share. Office—2930 N. Market Street, St. Louis, Mo.
Columbia Finance Corp., Baltimore, Md.
April 3 (letter of notification) $100,000 of five-year 8%
debentures due March 1, 1957.
Price—At par (in de¬
nominations of $50 each).
Proceeds—Tor expansion of
business.
Underwriter—None.

Columbia

Gas

System, Inc. (4/15)
$60,000,000 of debentures, series C, due
repay $20,000,000 of
bank loans

March

19

1977.

Proceeds—To

and

for

filed

1952

construction

program.
Underwriters—To
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.

be

determined

Bids—To be opened at 11:30

(EST)

a.m.

April 15.

on

stock

(par $1) and 8,000 shares of preferred stock (par
be offered in units of four shares of preferred
and four shares of common stock.
Price—$120 per unit.
Proceeds —For working capital.
Office — 3201 Rhode
Island Ave., Mt. Rainier, Md.
Underwriter—None.
to

★ Commonwealth Stock Fund,
San Francisco, Calif.
X-April 4

filed

250,000

Price—At market.

writer—North

shares

of

125,000 shares will be offered by company and
22,000 shares by present stockholders. Price—To be sup¬
plied by amendment. Proceeds — To open additional
supermarkets.
Underwriter—Hirsch & Co., New York.
Offering—Now expected about the middle of April.
Dallas

Inc.,
capital stock.

common

American Securities

Under¬

Co., San Francisco,

Consolidated

Industries, Inc.
(letter of notification) 200,000 shares of com¬
Price—$1 per share. Proceeds—For con¬
of sulphuric
acid, fertilizer and wood sugar

March 17

stock.

struction

plants.
Utah.

Office—174 North Main

Street, Salt Lake City,

Underwriter—None.

Consolidated
Feb.

18

filed

Investment

new

Investment

(letter of notification) 30,000 shares of class
common stock.
Price—At par ($10 per share). Pro¬
ceeds—For. working capital. Office—507
Spring Street,
A

Shreveport, La, Underwriter—None.
Continental Royalty Co.,
Dallas,
March 18 (letter of

notification)

Tex.
120,000 shares of

stock (par $1).
Price—$2.50 per share.
purchase royalties and mineral

mon

com¬

Proceeds—

deeds, oil and

gas.

Office—740 Wilson
Building, Dallas Texas. Underwriter
Southwestern Securities Co. and Hudson
Stayart & Co.,
Inc., of Dallas, Texas.

Continental
March 25
stock

mon

ceeds

—

Sulphur & Phosphate Co.
(letter of notification) 145,000 shares of com¬
(par 10 cents). Price—$1.37y2 per share. Pro¬

To pay indebtedness and for

new

construction.

Office—2010 Tower Petroleum
Bldg., Dallas, Tex. Un¬
derwriter— D. F. Bernheimer &
Co., Inc., New York.

by amendment. Pro¬

ceeds—For expansion program. Underwriters—Van Al¬
styne, Noel & Co., New York, and Crowell, Weedon &

Co., Los
rarily.
•

Angeles,

Diesel Power

To

retire bank

loans

and

Underwriter—Kidder, Peabody

by

for

& Co.,

Costa Construction

Co., Inc., Albuquerque, N. M.
(letter of notification) 200,000 shares of
pre¬
ferred stock and 2,000 shares of
common stock.
Price—
To be supplied
by amendment. Proceeds—For working
capital. Address
P. O. Box
6127, Albuquerque, N. M.
March 25

—

Underwriter—None.

County Gas Co., Atlantic
Highlands, N. J.

March

31

stock

stock

warrant.

Price

000

first

and

one

Probably $50 per unit.
Proceeds
of stock and Private placement of $12,500,-

7^fr?-n\sale

—

mortgage bonds will be used

to

and serial notes and for

retire

bonds

working capital. Proposed New
Name—New Jersey Natural
Gas Co. Underwriter—Allen
& Co., New York.

S?xto" Co:- Chicago,

costs

and

working

/^e P-efe,rr,ed.s'ock (par $25>(approximately $13
per

Wnmmol

j?
Hummer &

;.v:'

Doman

share).

Proceeds—To Harold E.

(amendment to

on

a

April 4 filed

82,000 shares

■"Ice~/° be supplied by
bank

loans

and




for

stock

common

prorata

common

basis,

of

notification) 75,000
(par $1) being first offered for

stockholders of record March 28

rights

to expire April 11; unsub¬
be publicly offered on April 14. Price
share. Proceeds—For working capital. Under¬
writer—Cohu & Co., New York.

—$3.75

per

Drilling & Exploration Co., Inc.

(4/22)

March 28 filed 400,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To ac¬

quire properties of Texla Gas Corp. and purchase other
properties. Business
Crude oil production.
Under¬
writers—Hornblower & Weeks, Harriman
—

Inc. and

Ripley & Co.,

Blair, Rollins & Co. Inc., New York.

Fenimore Iron Mines,
Ltd., Toronto, Canada
Jan. 25 filed 4,007,584 shares of common stock
(par $1)
and 2,003,792 common stock
purchase warrants of which
2,003,792
shares are to be offered to present common
stockholders at 75 cents per share
(Canadian

funds)

a

basis of

one

share for each two shares held.

new

Wayne

of common

amendment.
other

(4/23)

stock

(par $1).
Proceeds — To

corporate

purposes.

Hammond Bag &

Paper Co., Wellsburg, W. Va.

(letter of notification) 10,000-shares of common
be offered to stockholders. Price—At par ($20

Feb. 15
stock to

share). Proceeds—For working capital/ Underwriter

per

—None.

Hecla
Jan.

Mining Co., Wallace, Ida.
(letter-of notification) 3,000

the company
warrants.

,

21

Statement

program.
March 10.

Petroleum Co., Monroe, Wash.
600,000 shares of common stock

filed

10 cents).

Price

—

50 cents per

equipment and drilling

^Fuller

drilling

effective

Hex

F.

Inc., Kansas City, Mo.

Foods,

March 14

share.

purposes.

(no par).
Price—$20 per share.
Hoeck, the selling stockholder.

T.

Proceeds

—

Co., St. Paul, Minn.
April 3 (letter of notification) 20,000 shares of preferred
stock.
Price—$10 per share. Proceeds—To acquire new
plants. Office—181 West Kellogg Blvd., St. Paul
2, Minn.
Underwriter—None.
General

Alloys Co.,

Boston,

Mass.

March 5 (letter of notification)
25,000 shares of common
stock (no par), of which
15,025 shares are to be offered
for subscription by officers of the
company at $3 per
share and 9,975 shares
by certain key employees at the
same price
(latter part to be underwritten at $2.78 per
share). Proceeds—For working capital. Underwriter—

William S. Prescott &
Co., Boston, Mass.
General Gas Corp., Baton
Rouge, La. (4/17-18)
March 28 filed 120,000 shares of
common stock

Price—To be supplied by amendment.
tank

sales

and

for

(par $5).
Proceeds—To fi¬

working capital.

Underwriter

—

Business—

Kidder, Peabody

Co., New York.

Telephone & Telegraph Co. of Virginia
March 21 (letter of notification) 40,320 shares of capital
stock being offered for subscription by stockholders of
record April 1 on a l-for-5 basis; rights to expire on
April 18. Price—At
bank

loans.

Ltd., Montreal, Canada

April 9 filed 750,000 shares of common stock. Price—
($1 per share). Underwriter—George F. Breen

At par

Proceeds—For drilling expenses, repaymenl
of advances and working capital. Offering—Date not set

★ Golden Crown Mining Co., Crown King, Ariz.
April 2 (letter of notification) 40,000 shares of common
stock (par 50 cents).
Price—At market (estimated at

par ($5 per share). Proceeds—To re¬
Office—Emporia, Va. Underwriter—

'

'

>

■

•/

Husky Oil Co., Cody, Wyo. (4/22)
March 28 filed 300,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—From
sale of this stock, plus $1,050,000 from sale of 100,000
additional shares to Northern Natural Gas Co., to be
used for exploration and acquisition of properties and
to increase investment in Husky Oil & Refining Ltd., a
Canadian subsidiary. Underwriter — Blyth & Co., Inc.,
San Francisco and New York.

Indianapolis

Power & Light Co.

March 19 filed 196,580 shares of common stock
to be

offered

for subscription by

(no par),

stockholders

common

of record April 10 at the rate of one share for each seven
shares held
to

(with

oversubscription privilege); rights
Price—To be supplied by amendment.

an

expire April 24.

Proceeds—For

construction.

new

Underwriters—Lehman

Goldman, Sachs & Co. and The First Boston

Brothers,

Corp., all of New York.
Inland Oil Co.

(Nev.), Newark, N. J.
(letter of notification) 599,700 shares of class A

Feb. 26
common

stock (par 25 cents).

Price—50 cents

per

share.

Proceeds—For drilling and equipping well and for work¬

ing capital.

Office—11

Commerce

(St., Newark, N. J.

Underwriter—Weber-Millican Co., New York.
Insurance

Vending Machine Corp., Denver, Colo.
(letter of notification) $150,000 of five-year

26

(in denominations

500 shares of
one

stock

common

of $1,000 each) and 52,(par $1), each purchaser of
a bonus of 350 shares of

$1,000 debenture to receive

stock.

Proceeds

and

To

—

Cranmer

purchase

patents..

Office

Building, Denver 2, Colo.

—

720

Under¬

writer—None.

International Technical Aero

Services, Inc.
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—For

Feb. 15
stock

working capital. Office—International Terminal. Wash¬
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt & Co..

International
March 27

preferred
working

stock

$25).

(par

Price—To

be supplied by
expansion program and
Underwriters — Butcher & Sherrerd,

Proceeds —For

capital.

Philadelphia, Pa.,
Montreal, Canada.
•

Washington, D. C.

Utilities

Corp. (4/16)
250,000 shares of cumulative convertible

filed

amendment.

Interstate

Nesbitt,

and

Power

Thomson

&

Co.,

Ltd.,

Co.

March 3 filed 345,833 shares of common stock (par $3.50)

being offered for subscription by
of

record

shares

Golconda Mines

Milwaukee, Wis.

Home

Ernest

(H. B.)

Proceeds—To

Hoberg Paper Mills, Inc., Green Bay, Wis. (4/17)
25 filed 80,000 shares of 5V2% convertible pre¬
ferred stock (par $25). Price—To be supplied by amend¬
ment.
Proceeds—For working capital.
Underwriter-

debentures

For

-

March

March

Underwriter—None.

■-

(letter of notification) 2,500 shares of common

Underwriter—
Prugh-Combest & Land, Inc., Kansas City, Mo..

Un¬

(par

•

New. York.

non,

on

Unsubscribed shares will be offered by
the same price and carrying the same

Proceeds—To finance

Flathead
March

at

• •

shares of capital
(par 25 cents). Price—At market (approximately
$18 per share). Proceeds—To Mrs; M. K. Pollard, the
selling stockholder. Underwriter—Thomson & McKin17

stock

Sub¬

scribers will receive, for each share
subscribed, a war¬
rant to purchase one additional share at
$1.25 (Canadian
funds) per share until June 1, 1953, or an additional 2,-

supplied by amendment.

be

loans and for new equipment.
Underwriter—Morgan Stanley & Co., New York.

None.

letter

New York.

★ Cutter Laboratories,
Berkeley, Calif.

repay

—

Co., Chicago, 111.

To

—

Proceeds—To repay bank

duce

Helicopters, Inc.

24

subscription by

&
cumu-

Price-At the market

stockholder. Underwriter

Proceeds—For develop¬
capital.
Statement effective

April 2.

Distributor of LP-gas.

III.

(letter of notification) 900
shares of 4%%

Price

stockholders.

Robert W. Baird & Co., Inc.,

—

nance

March 3

Corp., Pittsburgh, Pa.

10 filed 475,000 shares of common stock to
be of¬
fered first to holders of preferential
rights for a limited
time. Price
At par ($1 per share).
Underwriter —

(4/21)

filed

106,000 shares of 6% cumulative pre¬
(par $20), 212,000 shares of common stock
(par $10) and 106,000 common stock
purchase warrants
(each warrant entitling holder to
purchase one share of
common stock)
to be offered in units of one share of
preferred stock, two shares of common
ferred

Offering—Postponed: tempo¬
v''

(4,16)

of common stock (par $5),*

for subscription by common stockholders on a onefor-five basis and the balance will be sold by certain

Jan.

derwriter—None.

supplied

New York.

Calif.

Manufacturing Co.

121,300 shares are to be offered by the com¬

which

stock

Feb. 5 filed 600,000 shares of
$1.50 convertible preferred
stock (par $25). Price—To be filed

amendment.

working capital.

Corp.

be received at Room 735, 11 Broad

pany

Corp.
Feb. 5 filed $25,000,000 of 4"%% first
mortgage bonds due
March 1, 1967.
Price — To be supplied by amendment.
Proceeds—To retire $13,950,000 of presently outstanding

York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif.
Offerings-Postponed
temporarily.

be

Underwriter—-To

construction.

new

Gustin-Bacon
of

Under-

*

by

March 28 filed 265,000 shares

Detroit Steel

003,792 shares.

—

Proceeds—For

Office—1506 Commerce Street, Dallas

Deerpark Packing Co., Port Jervis, N. Y.
(letter of notification) 235,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repay RFC loan of $41,050 and for working
capital.

Cornell-Dubilier Electric Corp.
(4/16)
March 26 filed
$4,000,000 of 20-year sinking fund deben¬
tures due March
1, 1972. Price — To be
Proceeds

,*

Beaumont, Tex. (4-22)
300,000 shares of common stock (no par).

& Co., Inc. Bids—To

Underwriter—None.

scribed shares to

Corp.

26

Co., New York.

competitive bidding. Probable bidders:
Stone & Webster Securities Corp.; Merrill Lynch, Pierce,
Fenner & Beane and Lehman Brothers (jointly); Blyth

Dayton Power & Light Co., Dayton, O.
18 filed 50,000 shares of common stock (par $7),
to be reserved under the company's employees' stock
plan.
Underwriter—None.

shares of

Underwriters

wells.

Price—At par

determined

March

March

$1.50). Proceeds—For investment. Underwriters—A.
Decker, Jr., President and Treasurer of corporation:
F. D. Keith,
Vice-President; and S. O. Ryan. Withdrawal
—Request filed March 27 to withdraw statement.
March

drill

299,900 shares of com¬
($1 per share). Proceeds—To
Office—328 Empire Bldg., Denver 2, Colo.
notification)

(letter of

March 19 filed

will subscribe for 10,476

Price—$100 per share.

construction.

C.

To

Utilities Co.

Texas

1, Texas.

of

^Consolidated

stock.

St., New York, up to 11 a.m. (EST) on April 22.

16.

ment

Corp.

40,000 shares of class A common stock.
($10 per share, with an underwriter fee

Price—At par

25

mon

April

additional shares.

Graham & Co., Pittsburgh, Pa.

Underwriters

Feb.

Proceeds—For

Detroit Steel

Underwriter—None.

.n

(4/14)

Co.

Petroleum

Gulf States Utilities Co.,

&

writers—Halsey, Stuart & Co. Inc. of Chicago and New

Proceeds—For investment.

Un¬

Underwriter—Steele &

19

first mortgage bonds and for expansion
program.

★ Connecticut Cordage Co., North Oxford, Mass.
April 1 (letter of notification) $25,000 of 7% debenture
notes dated April
1, 1952, in denominations of from $100
to $1,000).
Proceeds—For expansion of manufacturing

mon

Power

Proceeds—For working capital.

.

.

Light Co.
(letter of ontification) 188 shares of common
stock (no par) to be offered for subscription by common
stockholders (other than Texas Utilities Co., parent) of
record March 22 on a l-for-36 basis; rights to expire on

March

Calif.

facilities.

(par $1), of

which

1952

Western

Great

March 21

Commercial Finance Co., Inc., Mt. Rainier, Md.
March 21 (letter of notification) 8,000 shares of common

$25)

Daitch Crystal Dairies, Inc. (4/15)
Jan. 31 filed 147,000 shares of common stock

Thursday, April 10,

.

April 4

then

held

on

basis

(with

of

common

one

share

stockholders

for

each

six

oversubscription privilege).
April 18. Price — $8.65 per share.
Proceeds
For construction program.
Underwriter—
Smith, Barney & Co., who were awarded the issue on

Rights to expire

an

on

—

April 2
share.

on

their bid for

Statement

a

compensation of 141* cents per

effective

March

24.

•

-k Jackpot Oil Co., Denver, Colo.
April 3 (letter of notification) 1,600,000 shares of
mon

stock.

Price—At par (5 cents per share).

com¬

Proceeds

Volume

Number 5106

175

.

.

The Commercial and Financial
Chronicle

.

43

(1531)
—To

oil

royalties and leases. Office—724 Cooper
Bldg., Denver, Colo.
Underwriter—None.
secure

Jersey Yukon Mines Ltd., Toronto, Canada
March 20 filed 200,000 shares of common stock
(par $1).
Price—$1 per share (Canadian funds).
Proceeds—For
capital payments on property account and option .agree¬
.

ments, purchase of machinery and operating

.

stockholders of record March 31.
Proceeds—For working capital.

April 3 (letter of
notification) 10,200 shares of common
stock (par 10
cents).
Price—At market (estimated at
share). Proceeds—To George F.
Ryan, the
selling stockholder. .Office—47-49 West
Street, New

.95 cents per

expenses.

Underwriter—None.

York.

Underwriter—None.

Johnston

Adding Machine Co., Carson City, Nev.
5 (letter of
notification) 150,000 shares of capital
Price—At par ($1 per
share). Proceeds—To pur¬

March
stock.

chase tools and materials and office
equipment.
writer—None.
■

Mountain States
Telephone & Telegraph Co.
March 7 filed 318,624 shares
of capital
stock, being of¬
fered for
subscription by stockholders of record March
28 on a l-for-4
basis; rights expire April 29. Price—At
par ($100 per share). Proceeds—To
repay advances from
American Telephone &
Telegraph Co., parent, which
owns a
majority (over 84.81%) of present
outstanding
stock.
Underwriter—None. Statement effective March 26.
Multnomah Plywood
Corp., Portland, Ore.
Feb. 27 filed 200 shares of
common stock (par
$2,500),
of

Under¬

,

Junction City

(Kansas) Telephone Co.
Feb. 29 (letter of
notification) $294,000 of first mortgage
4y2% bonds, series A, due Feb. 1, 1977
(in denominations
of $1,000 each). Proceeds—To retire bank
loans. Under¬
writer—Wachob-Bender Corp., Omaha, Neb.

.

«.

Kansas-Colorado Utilities, Inc., Lamar, Colo. ;
notification) 5,866 shares of common
stock.Price—-$12.75 per share. Proceeds—To SullivanBrooks Co., Inc., the selling stockholder.
Office—112
:

March 14 (letter of

West

Elm

St.,

Lamar, Colo. Underwriter
Brooks Co., Inc., Wichita, Kan.
Kirk

March

Corp., Denver, Colo.
(letter of' notification) 1,000,000

24

stock.

Price

exploration

work.

Underwriter—Gardner &

;

2

(letter'

shares of

of

notification)

stock

common

of

approximately

6,600

York

17, N. Y.

per

>

common

to be offered .to executives and
key em¬
Price—At 95% of market

value,

Proceeds—For working capital.
Allister Street, San Francisco

Underwriter—

Lapaco Chemicals, Inc., Lansing, Mich.
March ;18
(letter of
notification) 200,787 convertible

notes

(each note convertible into $1 par class B
stock).
Price—90 cents each. Proceeds
For

working capital

—

and investment.

Mich.

Office—1800

Glenrose Ave., Lansing
2,

Underwriter—None.

Lindemann (A. J.) & Hoverson Co.
Nov. 28 filed 112,500 shares of
common

Price—To

be

supplied

by

amendment.

stock

(par $1)..

Underwriter—

Sills, Fairman & Harris, Inc.,
Chicago, 111. Proceeds—
To eight selling stockholders.
Offering—Date
indefinite.

Loch-Lynn Gas Corp. (N. J.) •
March 5 (letter of
notification) 1,000 shares
stock

(par $1).

Price—$100

share.

per

of

common

Proceeds—For

working capital.
Office—15
Exchange
City 2, N. J. Underwriter—None.

Place,

Jersey

^ Lone Star

Cement Corp.
(4/23)
April 3 filed 154,209 shares of common stock
(par $10).
Price—To be supplied by amendment.
Proceeds—To re¬
pay bank loans and for expansion
program. Underwrit¬

ers—Hayden, Stone & Co.

and Adamex

Securities Corp.,

New York.

■Ar Lorain County

Radio Corp.,

April 2

notification)

(letter
stock (no par).

of

Price—$50

per

512

shares

share.

of

common

Proceeds—To

re¬

imburse treasury for additions to
property.
West Ninth

Street,

Martin
March

21

shares of

(Glenn
filed

Lorain,

L.)

trust

certificates for 3,000,000
(par $1) and $6,000,000 of 10-

stock

4% convertible subordinated notes.

year

There

are

now

outstanding 1,134,229 shares of common stock eligible to
be exchanged for the
voting trust certificates. The notes
(convertible into

common

stock

at rate of $6
per share)
placed privately. Financial
Adviser—Smith, Bar¬
& Co., New York.
-

will be
ney

»

,

Mercantile

Acceptance Corp. of California
notification) 2,030 shares of common
(par $5) and $40,600 of 10-year 5%.
junior sub¬

March 20 (letter of
stock

ordinated debentures to be offered
to common stock¬
holders of record March 10 at rate of
one share of com¬
and

mon

$20 face amount of debentures.
Price—$23.50
per unit.
Proceeds—For working capital.
Office—333
Montgomery Street, San Francisco, Calif. Underwriter
—Guardian Securities
Corp., San Francisco, Calif.
•

Merritt-Chapman & Scott Corp.

March

13

filed

124,147

shares

of

common

stock

(par

$12.50), to be offered for subscription by common stock¬
holders of record April 10 on the basis
of one share for
each four shares held.
Of any unsubscribed
shares, em¬

ployees,

including officers, may purchase a maximum
10,000 shares; rights to expire about
April 28. Price—

of

$21

jshare. -Proceeds—To reduce bank loans and for
working capital and other corporate
per

purposes.

Office—

17 Battery Place, New York
4, N. Y. Business—Industrial
building, marine and heavy construction. Underwriter—

None.

Statement effective April 2.

Metal

Hydrides, Inc., Beverly, Mass.

March 21 filed

100,000 shares of

common

Price—To be supplied
by amendment.
large research facilities
and
for

stock

(par $5).
Proceeds—To en¬

new

construction.

mon

for

to

be




each

ing plant.

per

units of

$100 of debentures and two

offered

for

subscription

by

shares

common

or

share of preferred and two common shares. Price—
$102 per unit; debentures and preferred stock may also
be purchased at face value
separately. Proceeds—For

one

meal.

common

plied

To

—

general
search.

be supplied by
amendment.

corporate

purposes,

Business

com¬

stock

(par $1).
—

Scientific

Underwriter—Paine, Webber, Jackson

For
re¬

& Curtis,

amendment.

National Shirt Shops of
Delaware, Inc.
March 26 (letter of
notification) 1,000 shares of

».

common

(par $1). Price—At market (estimated at
$12 per
share). Proceeds
To Sylvan
Cole, the selling stock¬
Underwriter—Rosenthal & Co., New York.
—

ANew England Electric System (5/8)
April 9 filed 920,573 shares of common stock
to be offered for

(par $1)

subscription by common stockholders of
May 8 at rate of one share for each
eight
held; rights to expire May 26. Price—To be
sup¬
plied by amendment.
Proceeds—For construction
record about
shares

pro¬

Underwriters—May be

determined by competitive
Probable bidders: Blyth & Co., Inc. and Lehman
(jointly); Merrill Lynch, Pierce, Fenner &

bidding.
Brothers

Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Harriman Ripley & Co., Inc. and
.Goldman,
Sachs & Co. (jointly).
New

Jersey Natural Gas Co..
See County Gas Co. above.
New

Mexico Jockey Club,

Underwriter

^Pennsylvania Salt
to

be offered

of

record

Calif., will be "engaged

to sell the securities to the
public."

be

Newport Steel Corp., Newport, Ky.
5 (letter of
notification) 1,200 shares of common
stock (par $1). Price — At market
(estimated at about
Feb.

per

share).

Proceeds

—

To Bernard A.
—

Mitchell,
Merrill Lynch,

if Nighthawk Silver Lead Mining
Co., Inc.
March 28
(letter of notificatiori) 3,000,000 shares of
class C assessable stock
(par 10c). Price—lc per share.
Proceeds—For working capital.
Office—923 W. River¬
side Avenue,
Spokane, Wash. .Underwriter—None.
Noranda Oil Corp., San
Antonio, Tex.
(letter of notification) 10,000 shares of
stock (par $1). Price — At
market
fice—2101

common

supplied

Proceeds—To Aristide M. Joncas. Of¬

Transit Tower, San Antonio 5, Tex.
writer—C. K. Pistell & Co.,
Inc., New York.

common

subscription by

by

amendment.

new

(4/22)

stock

(par $10)

stockholders

common

one

held; rights to expire

share for

Stanley

each

Price—To
expansion

May 8.

on

Proceeds—For

Underwriter—Morgan

program.

&

Co.,

New

Peoples Finance Corp., Montgomery, Ala.
(letter of notification) 15,000 shares of common
stock (par $1). Price—$3 per share. Underwriter—Carl¬
son & Co., Birmingham, Ala.
Proceeds—To expand busi¬
ness.
Office—5 South Court St., Montgomery, Ala.
Dec. 19

Feb.

Finance Corp.
(letter of notification) 60,000 shares of common
(par $1) and 30,000- warrants to purchase 30,000

5

stock

shares

of

Under¬

stock (warrants exercisable at $7.50
prior to April 1, 1954). Each purchaser

common

share

per

on or

of two

common

$5

share.

shares will receive

warrant.

one

Price—

Proceeds—For working capital.
Office—
Oklahoma City, Okla.
Underwriter—George F. Breen,
per

New York.
•

Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.

March 28 filed
of

stock

Great

unspecified number of shares of

an

com¬

(no par) to be offered in exchange for shares

Lakes

Steamship Co.,

Inc.

stock,

common

of

which 61,109 shares are held by Great Lakes and 118,441

by

others.

Dealer-Manager—Hemphill,
Co., New York.

Parsons &

Noyes,

Graham

if Potdevin Machine Co., Teterboro, N. J.
April 7 (letter of notification) 2,500 shares of 6%

cumu¬

lative preferred stock to be offered to stockholders and

Price—At par ($100 per share).
Proceeds
working capital.
Office—200 North Street, Teter¬
boro, N. J.
Underwriter—None.
employees.

—For

,

Progressive Fire Insurance Co.
V
March 7 (letter of notification) 10,901 shares of capital
stock being offered first to stockholders of record Feb.
11; unsubscribed shares to be offered to public on April
15. Price—To stockholders $25 per share, and to public
$27.50 per share. Proceeds—For working capital to in¬
crease

volume

of business. Office—107

Cone

Street, At¬

Underwriter—None.

Products,

Inc.,

Detroit,

Mich.

March 14 (letter of notification) 112,500 shares of class A
convertible stock (par $1), being offered for subscription

by

common

each two
21.

stockholders at rate of

one

class A share for

shares held, rights to expire on April

common

Price—$1.25 per share. Proceeds — For equipment
working capital. Office — 443 West Congress St.,

Detroit 26, Mich.
troit, Mich.

Ralston

Underwriter—A. H. Vogel & Co., De¬

Purina

Co., St. Louis, Mo. (4/17)
$15,000,000 of sinking fund debentures
due April 15, 1977. Price — To be supplied by amend¬
ment.
Proceeds—To repay indebtedness and for capital
March

28

filed

expenditures. Underwriters—Kidder, Peabody & Co. and
Goldman, Sachs & Co., New York.
Reis

(Robert)

&

Co.
.

«

Jan. 29

(letter of notification) 7,000 shares of $1.25 div¬
preference stock
(par $10)
and 40,000
shares of common stock (par $1).
Price—$7.37 V2 per
share for the preferred and $1.12 V2 per share for com¬
idend

prior

Proceeds—To Estate of Arthur M.

Underwriter

Reis, deceased.
—None, but Lehman Brothers, New York,

will

broker.

mon.

(approximately 75

share).

Manufacturing Co.

York.

and

selling stockholder. Underwriter
Pierce, Fenner & Beane, Louisville, Ky.

—

April 22 at rate of

shares

seven

for

Radioactive

Albuquerque, N. M.

March 17 filed 1,255 shares of common
stock (par $1,000).
Price—At par. Proceeds—To construct
racing plant and
for working capital.
Underwriter—None, but Dr. Frank
Porter Miller of Los
Angeles,

$11.84

retire $10,720,000
1962 and for capital addi¬
Halsey, Stuart & Co. Inc.,

April 3 filed 155,349 shares of

lanta, Ga.

(4/21)

the

Proceeds—To

Chicago and New York.

mon

stock

gram.

Offering—Indefinitely

Petroleum
non-con¬

-Proceeds
—

by

tions,*.etc.

At National Research Corp.,
Cambridge, Mass.
(4/29)
Price

Statement

if Peabody Coal Co.
April 4 filed $15,000,000 of first mortgage sinking fund
bonds, series B, due April 15, 1972. Price—To be sup¬

(par $1)

3V2% notes dated Oct.
1, 1971.
Price—100%.
Proceeds—For -general corporate
purposes.
Office—79
Cliff Street, New York.
Underwriter—None.

common

Business—Softboard

Underwriter—None.

and common

Office—Lamar, Colo. Underwriter—None.

March 28 filed 100,000 shares of

equipment.

series A 4 %bonds due Oct.
1,

Chlorophyll

two

and

postponed.

Office—

stock

subscription by preferred

construction

ceeds—For construction program.

share. Busi¬

vertible

cents per

$1)

&

160,000 shares of 5%% prior preferred
(par $25). Price — To be supplied by amendment
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬

share for each
stock held.
Price—$9

At National Plumbing Stores
Corp.
April 7 (letter of
notification) $32,500 20-year

Michigan Steel Casting Co., Detroit, Mich.
March 27 (letter of
notification) 40,250 shares"of dom(par

per

Proceeds—Fo£
Office—Dallas, Texas. Uri^*
Dominick, New York.

Peabody Coal Co.

shares of National Alfalfa
preferred
or common
presently held in conjunction with offer
by
National Alfalfa
company of its own stock.
National
Chlorophyll shares are to be offered for
subscription"
only as part of a unit or
package consisting of one Na- tional Alfalfa share at
$9 per share and five shares of
National Chlorophyll stock
at $2 per
share, or a total
price per unit of $19.
Proceeds—To purchase from Na¬
tional Alfalfa its
existing chlorophyll extraction facil¬
ities and
inventory and for construction of new extract¬

Jan. 29

stock

Price—$1,030

sbare.

per

March 26 filed

stockholders of National Alfalfa
Dehydrating & Milling1
Co. in ratio of one
share of National

Underwriter—D. A. Lomasney &
Co., New York.

mon

30

Oregon Fibre Products, Inc., Pilot Rock, Ore.
Feb. 1 filed $2,500,000 5%
sinking fund debentures due
Jan. 1, 1968
(in denominations of $100 each); 5,000
shares of 6% cumulative
preferred stock (par $100) and
60,000 shares of common stock (par $1) to be offered in

holder.

Co.

voting

common

Office—203
Underwriter—None.

Ohio,

to be offered for
:

and

stock

common

Boston, Mass. and New York, N. Y.

Lorain, Ohio

c e—

Proceeds—To acquire 305,000 shares of
Na¬

April 7.filed 349,000 shares of

per-

derwriter—Dominick

well.

★ National Chlorophyll & Chemical
Co.

Office—1160 Mc¬

15, Calif.

None.

$18.05

or

new

Chlorophyll & Chemical Co. at $2
ness—Manufacture and sale ,of alfalfa
Lamar, Colo. Underwriter—None.

stock (par $1)

ployees,

share.

tional

if Langendorf United Bakeries, Inc.
April 2 (letter of notification) 1,600 shares of

Muskingum County, Ohio.
P r i
Proceeds—For development of

unit.

per

common

Underwriter—None.

share.

Township,

stockholders in ratio of one
10 shares of
preferred or

aggregate price not ex¬
ceeding $100,000.
Price—$15 per share. Proceeds—To
Estate of Lane Malsin.
Office—465 Fifth Avenue, New

debentures

stock (par $1). Price—85 cents
per share. Proceeds—To
Burnham & Co., et al. Office—First National Bank
Bldg.',
Santa Barbara, Calif. Underwriter—None.

Scarpellini Tract,

-A- National Alfalfa
Dehydrating & Milling Co.
April 7 filed 69,800 shares of
common stock (par
$1) to
be offered for
subscription by preferred and common

an

$1,000

$1

hardboard plant.
effective March 12.

64

Underwriter—None.

Ar Lane Bryant, Inc., N. Y.
April

14 filed

$437.50

;

of

stock, remaining 80,000 shares to be sold to

general corporate purposes.

new

unit.
peeler

per

units of undivided
working interests
oil and gas
leasehold in the John

Cass

Co.,

of

officer and two other
companies.
unit and 80,000 shares at
one

it Palmer Stendel Oil Corp., Santa Barbara, Calif.
March 31 (letter of
notification) 67,000 shares of capital

in

—

Building, Denver, Colo.
Colorado Springs, Colo.

shares

Proceeds—To acquire
timber, timberlands and
plant and for working
capital. Underwriter—None.
★ Mutual Oil & Gas
Co., Zanesville, Ohio
March

shares of
30 cents per share.
Proceeds —
.Office
405
Interstate Trust

—

publicly offered in units

and

$12,500

Sullivan-

★ Oil & Gas Property
Management, Inc. (4/23)
April 4 filed $10,000,000 of 4% income debentures due
May 1, 1967 and 380,000 shares of common stock (par
$1). The debentures and 300,000 shares of stock will be

which 191 shares are to be
offered to stockholders at
and nine shares are to be
offered to three indi¬
viduals in units of three
shares each at

par

Uranium

common

For

—

Price—$5.25 per share.
Underwriter—None.

if Mohawk Business Machines
Corp.

,

act

as

Continued,

on

page

44

44

The Commercial and Financial Chronicle

(1532)

Continued

from

Soya Corp. of America
April 3 (letter of notification) 60,000 shares of common

43

page

'

Ridley Mines Holding Co., Grafton, N. D.
shares of common stock. Price—At

stock

(par

cent).
Price—50 cents per share.
Pro¬
working capital.
Office — 30 Rockefeller

one

Feb. 15 filed 100,000

ceeds

par ($5 per share). Proceeds—For exploration and other
mining purposes. Business — Uranium mining. Under¬

Plaza, New York 20, N. Y.

Robinson

(J. W.)

Co., Los Angeles, Calif.

offered

rata basis to stockholders of record Nov. 23,
1951 (approximately 33 in number) for a 30-day period,
with an oversubscription privilege. Unsubscribed shares
on

a

pro

to be sold

ferred, at par, and of common at $13.50 per share. Pro¬
ceeds—To reduce indebtedness and for improvements to
property. Office—701 Boonville Ave., Springfield, 1, Mo.
Underwriter—Moody Investment Co., Springfield, Mo.

privately to individuals selected by company.
share). Underwriter—None. Pro¬
capital. Business — Department

Price—At par ($10 per
ceeds — For working

Statement effective Jan.

store.

Inc.
shares of common stock (par $1),
be offered in exchange for common stock of General

to

Telephone Corp. (4/23)
60,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—To repay $3,200,000 bank loans, to redeem
$2,282,600 first cumulative preferred stock and for con¬
struction expenses.
Underwriter — The First Boston
Corp., New York.

basis of four Standard shares for
Offer will be consummated if
holders of 85% of General shares tender their stock in
Instrument

filed

26

Rosslyn Small Loan Co.,

Standard Thomson
March

shares of class A common stock. Price
($5 per share). Proceeds — To operate small
Office—2006 North Moore St., Rosslyn,

—Reich &

Stout

Brewing Corp. (4/17-13)
of capital stock (par $10).

Price—To be supplied by amendment.

Proceeds—To six
Blyth & Co., Inc.
Conrad, Bruce & Co., both of San Francisco, Calif.

selling stockholders.
and

Underwriters

Jan. 29

$1).

Price—At market (approximately $6

Underwriter—Franklin

&

stock. Price—At

cumu¬

($100 per share).

par

Proceeds—For

working capital. Office—6323
Ave., Chicago 31, 111. Underwriter—None.

per

Avondale

Superior Plywood Corp., Crescent City, Calif.
17 filed 3,600 shares of class A voting common
stock (par $10), 300 shares of class B non-voting com¬
mon stock
(par $5,000) and 9,000 shares of 6% cumu¬
lative preferred stock (par $100), of which 1,500 class

Co., New York.

March

Seattle Gas

Co., Seattle, Wash.
March 21 (letter of notification) 10,000 shares of com¬
mon
stock (par $10).
Price—$13.62% per share. Pro¬
ceeds—For operating expenses. Underwriter — Smith,
Polian & Co., Omaha, Neb.

A

Pipe Line Co., Tulsa, Okla. (4/16)
March 27 filed $90,000,000 of 30-year sinking fund de¬
bentures due April 1, 1982. Price — To be supplied by

$5,050

Underwriter—Morgan Stan¬

and
five

per

300

class

shares

of

B

shares

class

A

to

be

offered

in

one

of

class

B

at

are

and

(subscribers must surrender $2,500

unit

par

in

preferred stock
partial payment); 700 class A shares to be offered

in

exchange for standard

share

ley & Co., New York.
Signal Mines,

of

value of Standard Veneer & Timber Co.

Proceeds—To retire bank loans. Business—

Crude oil pipe line system.

shares

units

Service

amendment.

Corp., Chicago, III.
(letter of notification) 3,000 shares of 6%*

lative preferred

Proceeds—To Howard S. Thomas, Jr., the selling

stockholder.

'

Electric

Sun

Sargent & Greenleaf, Inc., Rochester, N. Y.
18 (letter of notification) 5,500 shares of common

6hare).

Underwriter—None.

Denver, Colo.

of

stock

common

preferred stock for cash at

par

in exchange for

or

standard stock. Proceeds—To purchase site for

500,000 shares are for account of company.
Price—At
par ($1 per share).
Proceeds—For exploration and de¬
velopment costs and working capital.
Underwriter—

plywood

equipment

mon

18511

Proceeds—For

general

Euclid

Ave.,

corporate

Cleveland

purposes.

Ohio.

12,

Office—

Underwriter—

None.

Building,

working capital. Office—220 Paramount
Denver 2, Colo.
Underwriter — James M.

Toolan

Co., New York.

March 25 filed 1,250,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To

&

Tennessee

Slick

Airways, Inc., Burbank, Calif.
April 2 (letter of notification) 24,000 shares of common
stock. Price—At par ($10 per share), to be offered un¬
der^ Employees Stock Option Plan, 1952. Proceeds—None.
South

$4.50)

26

to

Electric & Gas Co.
(4/15)
417,719 shares of common stock (par
be first offered for subscription by common

1982 and

filed

Proceeds

Underwriters—To be determined by com¬
petitive bidding. Probable bidders Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Lehman Brothers and Blyth &
Co., Inc. (jointly); Salomon Bros. & Hutzler; Harriman

Underwriter—Kidder, Peabody & Co., New
•'';•'• •

<

Ripley & Co., Inc.; Union Securities Corp.; Hemphill,
Noyes, Graham, Parsons & Co. and Drexel & Co. (joint¬
ly); Kidder, Peabody & Co. and Merrill Lynch, Pierce,

■/;;

Southern California Edison Co.
(4/15)
March 24 filed 800,000 shares of common stock
(par $25).
Price—To be supplied by amendment. Proceeds—To re¬
pay

bank loans and for

—The
& Co.

First

new

construction.

Fenner & Beane

Southern

Oil Corp.,
Billings, Mont.
(letter of notification) 239,997 shares of class
A common stock and
10,000 shares of class B common
stock. Price—At par ($1 per
share). Proceeds—To drill

Proceeds—To Muriel

March 26

(EST)

a.m.

on

Alvord, et al. Underwriter—Wood,

common

(par $100) to be offered in units of four shares of

1972

and

30,000

{par $100).
ceeds—For

shares

of

cumulative

preferred

Price—To be supplied by amendment.
expansion.
Underwriter—Blair,

plant

lins & Co., Inc., New York.

stock

unspecified number of shares of
(par $1) to be offered for subscription

10

shares

amendment.

then

held.

Proceeds—For

Pro¬

by

Price—To
new

one

be

Under¬

To acquire additional leases
and to drill wells.

shares.

share. Proceeds—For

$10).
For

San

Price—$200
and working

unit.
capital.

per

Proceeds—For
Underwriter—

Statement effective March 25.

Tucson Gas,
March
,

Business

per

Telecasting Corp., Chattanooga, Tenn.

equipment

None.

(par 10

gas. Underwriters—W. E. Hutton & Co., Cin¬
cinnati, O., and Craigmyle, Pinney &
Co., New York




common

new

(4/29)
stock

Price—$1

21 filed 20,000 shares of common stock
(no par)
2,000 shares of 5% cumulative preferred stock (par
$100) to be sold in units of one preferred share and

cents), of which 330,000 shares are
being sold by the
company and 170,000 shares by certain
selling stockhold¬
ers.
Price—To be supplied
by amendment. Proceeds—

-^Oil and

Proceeds—To liquidate present liens on real estate
Underwriter—None.

and

10

common

per

Jan.

by

writer—None.

Southwest Natural Gas Co.
March 27 filed 500,000 shares
of

pre¬

Price—$500

equipment.

Tri-State

share for

construction.

stock.

working capital. Office—i Main St., Houston, Tex. Un¬
derwriter—Arthur I. Korn & Co., New York.

common

supplied

common

stock

Jan.

common

New

York, and A. H. Vogel & Co., Detroit, Mich.

31

Inc., Brooklyn, N.,Y. '
April 3 (letter of notification) 1,091 shares of 6% cumu¬
lative preferred stock (par $100) and 1,000 shares of
common stock (par $2).
Price—At par. Proceeds—For
working capital.
Office—12 Franklin Street, Brooklyn
22, N. Y.-; Underwriter—None.
.

Welex Jet

Services, Inc.
Jan. 25 (letter of notification) 2,000 shares of common
stock (no par). Price—$20 per share. Proceeds—To W.
H. Thompson, the selling stockholder.
Underwriters—.
Barron McColloch, Ft. Worth, Tex.; Dewar, Roberston
& Pancoast and Russ & Co., both of San Antonio, Tex.;
and Laird & Co., Wilmington, Del.
1
25

(letter of notification)

stock

mon

(par $5)

shares held.

16

Price—$11.50

Price—To be supplied by amendment. Proceeds—
construction. Underwriters—Blyth & Co., Inc.,

new

Francisco

and

Corp., New York.

New

St., Lima, Ohio.

for subscription by

to be offered

stockholders at rate of

common

\

Co., Lima, Ohio
J'" < r
19,753 shares of com¬

West Ohio Gas
March

new

one

per

share.

Office

share for each

Proceeds—;For

319 West Market

—

J:

Underwriter—None.

'i?

West Penn Power Co., Pittsburgh, Pa. Feb. 28 filed 221,786 shares of no par common stock
which
11,898 shares are offered for subscription

of

by
stockholders
(other than West Penn Electric Co.) of
record April 4, at rate of one share for each 14 shares
held; rights to expire in April 28. Price—$37 per share.
Proceeds—To pay bank loans and for property additions
and improvements. Underwriters — None. West Penn
Electric Co., owner of approximately 94.6%

ing

stock,

common

proposes

of outstand-

|

to purchase all shares not

J
(

subscribed by public holders. Statement effective March

•

V

■

Western Air

Lines, Itrsc.

March 10 filed 165.049 shares of

common stock (par $1),
being offered for subscription by stockholders of record
April 8 at rate of three new shares for each 10 shares

held;

rights

to

expire

Proceeds—To

share.

on

be

April

added

22.

to

Price—$11.50 per <
capital and !

working

used for

J

purchase of additional equipment. Underwriter
—Blyth" & Co., Inc., San Francisco, Calif., and New York,

Willys-Overland Motors, Inc.
April 4 (letter of notification) 371 shares of $4.50

j

cumu¬

preferred stock, series A (no par). Price—$66 per
Office—940 North Cove Blvd., Toledo, Ohio. Pro¬

ceeds—To

Delmar

G.

Roos,

the

selling

stockholder.

Underwriter—None.

^ Wisconsin Electric Power Co.
April 9 filed $12,500,000 of first mortgage bonds due 1982.
repay bank loans and for new construc¬

York,

and

Underwriters—For

The

First

Boston

bonds, to be determined by
Probable bidders: Halsey, Stuart &
Lehman Brothers and Salomon Bros. & Hutz-1

competitive bidding.
Co. Inc.;
ler

(jointly); Equitable Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Glore, Forgan & Co.; The First
Boston

Ripley

Corp.; Union Securities Corp. and Harriman
Co., Inc. (jointly).
Offering—Expected in

&

May.

.

-fa Wisconsin Electric Power Co.
;
:Ki
April 9 filed 702,486 shares of common stock (par"$10)
to be offered for subscription by common stockholders at
rate of

be

one

for each five shares

held. * Price—To

Proceeds—For construction \
Underwriter—None.
J
j

program.
•

share

\

supplied by amendment.

Wisconsin

Power &

Light Co.

(4/14)

March 19 filed $7,000,000 of first mortgage

F, due April 1, 1982.
and

for

mined

Electric Light & Power Co. (4/23)
140,000 shares of common stock (par

filed

' '

Warner Dog Food Co.,

tion.
pre¬

Trangulf Corp., Houston, Tex.
25 (letter of
notification) 25,000 shares of capital

Rol¬

(4/24)

an

stockholders of record April 24 at rate of
each

and

share of

stock (par 10 cents).

ic Southern Union Gas Co., Dallas, Tex.
April 8 filed

unit.

due

stock

one

\

Proceeds—To

ferred stock (par $100) and 550 shares of
ferred and

* Southern Union Gas Co., Dallas, Tex. (4/28)
April 8 filed $5,000,000 of sinking fund debentures

,

Instrument Co., Cleveland, Ohio
March 28 filed 90,000 shares of common stock (par $1),
of which 60,000 shares will be publicly offered and 30,000 shares to three non-selling stockholders.
Price—To
be supplied by amendment. Proceeds—To certain selling
stockholders. Underwriters—Barrett Herrick & Co., Inc.,

May 6.

★ Townsend Nurseries, Inc., Salisbury, Md.
April 4 (letter of notification) 2,200 shares of 6%

—None.

.

^ Victoreen

share.

Struthers & Co., New York.

531, Billings, Mont. Underwriter

.

ic U. S. Manganese Corp., Phoenix, Ariz.
April 1 (letter of notification) 17,500 shares of common
stock (par $1). Price—$2 per share. Proceeds—To Green¬
field & Co., <?t al. Office—610 Heard Bldg., Phoenix, Ariz.

lative

Torrington Water Co., Torrington, Conn.
March 18 (letter of notification) 3,174 shares of capital
stock (par $25). Price—At approximately $27 per share.

Corp., New York, and Harris, Hall
(Inc.), Chicago, 111.

£ U. S. Manganese Corp., Phoenix, Ariz.
,/
April 4 (letter of notification) 260,000 shares of common
stock (par 25 cents) to be offered in exchange for $65,000
of notes.
Underwriter—Hunter Securities Corp., New

Bids

(jointly); The First Boston Corp.

—Expected to be received at 11:30

Underwriters

Boston

oil wells. Address—Box

—

construction.

at rate of one share for each five shares
held about April 15; rights to expire on
April 30. Price
—To be supplied by amendment. Proceeds — For new

?

$5,000,000 of sinking fund debentures due 1971.
To repay short-term borowings and for new

-

.

A- United Oil Corp., Oklahoma City, Okla.
April 1 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—At market (estimated at 18
cents per
share).
Proceeds—To Forrest Parrott. the
selling stockholder.
Office—3109 Liberty Bank Bldg.,
Oklahoma City, Okla.
Underwriter—None.

21.

Texas Electric Service Co., Ft. Worth, Tex. (5/6)
March 26 filed $8,000,000 of first mortgage bonds due

stockholders

York.

(4/15-16)

ties Corp. and White, Weld & Co., New York.

Carolina

construction.

Co.

repay bank loans and for exploration and development
of properties.
Underwriters—Stone & Webster Securi¬

Underwriter—None.

March

Production

',

;

•

and

first

of

April 29.

on

* Swartwout Co.,

^ Sioux Oil Co.,

Denver, Colo.
(letter of notification) 800,000 shares of com¬
stock (par one cent).
Price—32 cents per share.

received

$30,000,000

general corporate purposes.

March 21

.

Securities Ltd.

filed

27

plant, to repay loan and for working capital. Business—
Operator of green veneer plant. Underwriter—None.

Cleveland, Ohio
March 31 (letter of notification) 6,500 shares of class A
stock (par $1).
Price—$13.99 per share. Proceeds—For

Northeastern

.

and col¬
lateral trust bonds, due 1982. Proceeds—To retire prom¬
issory notes and for new construction. Underwriter
To
be determined by competitive bidding. Probable bidders.
Halsey, Stuart & Co. Inc.; The First Boston.; Lehman
Brothers; Kuhn, Loeb & Co. and Harriman Ripley & Co.,
Inc. (jointly); White, Weld & Co. and Shields & Co.
(jointly); Dillon, Read & Co. Inc.; Blyth &Co., Inc. and
Union Securities Corp. (jointly). Bids—Expected to be
March

share for

on a

basis; 1.400 class A shares to be sold to manage¬
group of Superior company; and all of 9,000 shares

ment

Ltd., Toronto, Canada

Marcn 17 filed 600,000 shares of common stock of which

(4/29)
mortgage

Electric Co. of Missouri

Union

1952

Thursday, April 10,

.

Underwriter—None.

Oil

—

Feb.

stock (par

Co., W. C. Langley & Co. and Carreau & Co.,

Co., Denver, Colo.
March 25 (letter of notification) 6,000,000 shares of com¬
mon
stock. Price—At par (five cents per share). Pro¬
ceeds—For drilling expenses.
Office — 1729 Stout St.,

March 27 filed 25,666 shares

.

York.

Corp.

.(letter of notification)

all of New York.

Underwriter—None.

San Francisco

17

14,500 shares of com¬
mon stock (par $1).
Price—At market (around $6.75 per
share). Proceeds—To selling stockholders. Underwriters

business.

Va.

Co., Inc.

Dealer-Managers—F. Eberstadt &
York.

exchange.

April 2 (letter of notification) 15,000 shares of preferred

loan

on

and Hirsch & Co., both of New

stock and 20,000
—At par

Corp.

each five General shares.

Rosslyn, Va.

Inc.,

Products Co.,

Standard Coil

March 17 filed 486,858

28.

Rochester

March

Underwriter—None.

Springfield City Water Co., Springfield, Mo.
March 24 (letter of notification) 1,620 shares of 4Y4%
cumulative preferred stock, series E (par $100) and 10,000 shares of common stock (no par).
Price—Of pre¬

writer—None.

Jan. 4 filed 100,000 shares of capital stock to be

For

—

.

new

.

bonds,' ;$eriea

j
<

Proceeds—To reduce bank loans

construction.

Underwriters—To be

deter-

j

competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Kid¬
der, Peabody & Co. (jointly); Kuhn,'Loeb & Co.; Salo¬
mon Bros. & Hutzler; Equitable Securities
Corp.; Smith,
by

Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Union
Securities
Corp.; First Bostoh Corp.; Glore,
Forgan & Co.; Lehman Brothers and Bear, Stearns 8i )

I

Volume 175 ' Number 5106

ft

\

t

The Commercial and Financial Chronicle

..

(1533)
Co. (jointly).

•

Bids—Tentatively expected to be received

to 11:30 a.m. (CST) on April 14.

up

Power &

Wisconsin

March

filed

19

1

-

California-Pacific
Feb. 29

;>•

it

$2,000,000 of

Light Co.

15,000 shares of 4.80%

cumulative pre¬

Utilities

Co.

Florida

reported company expects to offer about
debentures within the next two months.

was

ments

being offered for subscription by

March 25 stockholders voted to increase

authorized pre¬

ferred

shares

of record
each

March

common

and

new

the basis

on

of

one

new

share for

shares

seven

—$101.50

31

stockholders

common

held; rights expire on April 21. Price
share for preferred and $17.15 per share for

per

stock.

Proceeds—For reduction

of bank

loans

construction;

Underwriters—Smith, Barney &
Co., New York, and Robert W. Baird & Co., Inc., Milw>aqkee, Wis. ;
*
,

Wix Accessories

Corp., Gastonia, N. C.
(letter of notification) 10,000 shares of

March 3

common

stock, to be offered for subscription by stockholders.
Price—$18 per share. Proceeds—For working capital.
Underwriter—Jackson & Smith, Gastonia, N. C.
Zeigler Coal & Coke Co., Chicago, III.
27 filed 66,125 shares of common stock, to be
offered for subscription by common stockholders at rate
March
of

one

share

new

($10

par

for

each

share).

per

five

shares held.

Proceeds—To

repay

Price—At

bank

loans.

Business—Owner and lessor of coal properties. Office—■
21 E. Van Buren St., Chicago 5, 111. Underwirter—None.

be

Proceeds will be used to pay for additions and
improve¬

being offered for subscription by
preferred stockholders of record March 31 on a pro rata
basis, and 288,208 shares of common stock (par $10),

ferred stock (par $100),

Jan. 11 it

to
property.
Traditional Underwriters
California Co., Inc., San Francisco, Calif.

mediate plans for sale of any additional preferred stock.
March 4 it was reported company plans the sale this

Peabody & Co. and Merrill
Beane acting as agents.

Fall

Florida Power & Light Co.
Feb. 11 directors approved a

Hudson

stock

of

Gas

&

$100)

(par

Electric

from

—

Corp.

150,000

(130,300

about

$5,500,000 first mortgage bonds. Latest
financing was done privately in March, 1951
through Kidder, Peabody & Co.
bond

•

bidding.

Proceeds

—To pay at maturity $49,988,000 of 4% non-callable
solidated first mortgage bonds due
July 1,

con¬

•

Columbus & Southern Ohio Electric Co.
announced company

expects to enter the

financing market about the

middle

common

of

nand to issue

37,500 shares

1,000,000 from 750,000 shares,

as a

writer—Watling Lerchen

5% stock dividend.

&

Co.,

Detroit,
ceeds-^-For additional working capital.
Alabama

Gas

Mich.

Under¬

Pro-

Corp.

March 7 sought SEC authority to issue and sell $4,000,000 first mortgage bonds, series C, due 1971. Proceeds—
For construction program.
Underwriters—To be deter¬
;

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; White, Weld & Co.,
Kidder, Peabody
& Co. and

Stone

&

Webster Securities

Corp. (jointly);
The First Boston Corp.; Salomon Bros. & Hutzler,
Equit¬
able Securities Corp. and Carl M.
Loeb, Rhoades & Co.
(jointly).
American

•

Can

Co.

Feb. 5 directors approved the raising of
$50,000,000 of
money to provide for the company's plant improve¬
ment program and for additional working capital. C. H

new

stock. Pro¬

Stockholders

will

vote

April ,29

on
approving
split-up of pre¬
Underwriter—Morgan Stan¬

or

new

Telephone & Telegraph Co.

exceed

$550,000,000

of

convertible
offered to

was

March 27 it

debentures.

Last
at par,

without underwriting.

Arkansas
March 14 it
of

Power &

was

Light Co.

reported company plans sale in October

$12,000,000 first mortgage bonds.

be

determined

Gas

announced

was

construction.

Underwriters—To

Brothers and Stone & Webster Securities
Corp.
Union Securities Corp.; Merrill

(jointly);
Lynch, Pierce, Fenner

& Beane; Blyth & Co., Inc.
Ashland Oil &

•

March 24 it

Refining Co.

was

reported stockholders in May will vote
approving creation of an issue of second preferred
stock Jo be issuable in series, the first series
probably
to be convertible into common stock and offered first

construction.

Atlantic

Underwriter—A. G.

increasing authorized

on

500,000 shares

Refining Co.

ment

retained

itures.",
not

The

earnings

amount and

supple¬
capital expend¬
timing of such financing can¬

available

be presently announced.

for

to

be offered rights to subscribe to the
40,000 shares in the
ratio of 3.64 preferred shares for each share of common
held.
.

/•-

Bell Telephone Co. of
Pennsylvania
Jan. 2 it was announced that

by the

being

company's

con¬

construction

next three years calls for the expenditure
of $247,000,000 of which about
$81,700,000 will be spent
in 1952. Underwriters—For bonds to be decided

by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and

(jointly); The First Boston Corp.




Corp.
corporation

announced stockholders

was

on

•

Crane

Co.,

announced stockholders will vote

April

stock from 3,000,000
It is planned to issue and sell $12,-

shares to 3,500,000.

000,000 of securities and

the

use

working capital. Underwriters — Morgan Stanley & Co.
and Clark, Dodge & Co., New York.
Dallas Power & Light Co.
Jan. 23 company was reported
and sale

of

to be planning issuance
$6,000,000 first mortgage bonds, with regis¬

tration expected in the near future.

construction

Proceeds—To be used

Underwriters—To be

program.

deter¬

mined by competitive bidding. Probable bidders:

Halsey,
Corp.; Harriman Rip¬
ley & Co., Inc.; Equitable Securities Corp.; Lehman
Brothers; Union Securities Corp.; Kidder, Peabody & Co.;
Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Beane.
Bids—Expected late May or early June.
Chemical

on

was

Corp.

announced stockholders will

on

a

l-for-5

basis.

Sons, Baltimore,
York.

Md.,

.

vote

April

issue of 300,000 shares
(par $50), of which it is

an

preferred stock

planned to offer 128,533 shares first to
holders

common

stock¬

Underwriters—Alex. Brown

and
,

Kidder,
..,

J,,

Peabody
<\

&

Co.,

National

Bank

of

was

(7/8)

announced

of

Co.

(jointly); Shields

and

Salomon

Bros.

&

Hutzler

(jointly);

Securities

it Glass Fibres, Inc.
April 7 stockholders voted to increase authorized
comstock from 1,000,000 shares
(approximately 938,000
shares outstanding) to
1,250,000 shares to provide addi¬
tional stock for future
expansion needs. Traditional Un¬
derwriter—McCormick & Co., Chicago, 111.
mon

•

Globe-Wernicke Co.

March

26

10

stockholders

tional shares of

each five

approved

common

shares

stock

held; rights to expire

on

May 29.

Unsubscribed shares would be purchased by Transamerica Corp., which owns a
controlling stock interest in
the bank.
Price—$30 per share.
Proceeds—To increase

capital and surplus.

.

stockholders

increased

authorized

common

stbek from 300,000 shares
(par $5) to 600,000 shares (par
$7), placing the company in a position to consider
from
time to time stock dividends and
the giving of stock
rights or warrants to present stockholders.
Underwriters

—May include Westheimer & Co.,
Cincinnati, O. Previ¬
ous public
financing handled by W. E. Hutton & Co. and
W. D. Gradison &
Co., also of Cincinnati.
Gulf
Feb.- 8

Power Co.
it

was

(6/24)

announced

company

sell

plans to

issue

and

$7,000,000 of first mortgage bonds. Proceeds—For
construction. Underwriters—To be
determined by
competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Coffin &
Burr, Inc.; The First Boston Corp.;
Kidder, Peabody & Co.; Union Securities
Corp.; Equita¬
ble

Securities Corp.; Blyth &
Co., Inc.; Kuhn, Loeb &
Co.; Merrill Lynch, Pierce, Fenner &
Beane; Salomon

Bros. & Hutzler and Drexel & Co.
(jointly).
on or about June 24.

Bids—Ex¬

Idaho Power Co.
Feb. 27 T. E. Roach,
President, announced that the com¬
pany's present plans consist of the sale this summer
of
about 225,000 additional shares of common
stock (par
no preferred stock.
Price—At a minimum of
share net to company. Underwriters
Latest

$20), but
$35

per

,

Portland

(4/30)
sale of 200,000 addi¬
(par $12.50) to common
stockholders of record April 30 at rate of one new share
March

for

stock without

pected to be opened

authorizing creation of

of convertible

New

bidding,

common

Underwriters—If stock is
probable bidders may in¬

new

Stuart & Co. Inc.; The First Boston

Davison

.

common

proceeds to retire $4,000,000 bank loans, $3,000,000 for investment in Canadian
subsidiary and the balance for expansion program and

&

to

Corp. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co. Inc. Bids—Expected
on
July 8.

April 30 will

Chicago, III.

was

increasing authorized

on

17

expected

on

March 31 it
22

is

new

&

directors.

increasing the authorized indebtedness from $5,000,000 to $15,000,000 (none presently outstanding) and
the authorized preferred stock (par
$50) to 137,727 shares
from 37,727 shares, which are all
outstanding. Traditional
Underwriter—Riter & Co., New York.

it

common

program for

Union Securities Corp.

For

Copperweld Steel Co.
vote

com¬

,,

.

approximately 530,000 additional shares
Stockholders on April 7 will vote on

competitive

8

Union

March 3 it

.

company plans issuance and
$20,000,000 of first mortgage bonds. Proceeds—
construction. Underwriters—To be
determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co.
Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb &
Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co.
sale

stock (par $5) from

financing of the corpora¬
No plan involving the issuing

common

at

,

stock.

common

Feb.

shares is presently

additional

First

.

reported the

con¬

stockholders.

(476,578 shares outstanding) to 1,000,000
care of future stock dividends and
pro¬

take

March 13 it

Bank of Passaic & Trust
Co., Passaic, N. J. *
March 5 stockholders approved the issuance of
$1,000,000
of 3V2% convertible preferred stock
(par $25). They will

was

summer

Georgia Power Co.

common

vote

from

Lehman Brothers; The First Boston
Corp. In
July, 1951, Merrill Lynch, Pierce, Fenner & Beane
acted
as
clearing agent for an offering of common stock to

April

tion's expansion program.

$

J

it

clude:

Traditional Underwriter—

Smith, Barney & Co., New York.

6

sell this

Co.

of any

for

March 21, Robert H. Colley, President, said in the com¬
pany's annual report that "the time may be coming
when additional financing will be required to

General Public Utilities

company

announced stockholders will vote

will
stock

for stock of another

*

Feb.

Underwriter—None.

was

common

45,000

pany.

Offering-

on

for subscription by common stock.
Becker & Co, Inc., Chicago, 111.

shares in exchange

common

Cooper-Bessemer Corp.

by

competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Equitable Securities
Corp., and Central Republic Co. (Inc.) (jointly); Lehman

stockholders

Of the increase, it is
reported company is
sidering issuance of 10,000 preferred shares and

plans to issue and
sell to its stockholders in June
409,254 additional shares
of capital stock on a l-for-8 basis.
Proceeds—For new

sidered

stockholders

announced

shares.

sold

^Consolidated Natural

Feb. 20 directors voted to place before stockholders on
April 16 a proposal to authorize a new issue of not to
issue of debentures

was

increasing authorized

requiring preemptive rights.

shares

American

it

on

1,000,000 shares to 1,500,000 shares and authorized
pre¬
ferred stock (par
$100) from 120,000 shares to 150,000

April.

vide additional stock for future

stocks.

31

April 22

proposal to authorize issuance of

Proceeds—For

financing plans and proposed 4-for-l

ley & Co., New York.

,

• General Precision Equipment Corp,

stock sale.

Expected in March

„

with

Boston

ferred and

common

stock

of

28

stockholders for subscrip¬

preferred

nancing, while White, Weld & Co. handled last preferred

would be offered to

common

First

.

several underwriters.
A
total of 50,000 shares were
recently offered to common
stockholders at par ($5 per
share).
',

presently estimated

Inc.; White, Weld
Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons and John
C.
Legg & Co (jointly) handled latest common stock fi¬
The

Corp.;

Fuse

.

cient to raise
approximately $22,000,000. Underwriters—
For bonds to be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
and

City Ry.

Co., South River, N. J.
O. Burt, President, announced
company
discussing the marketing of unsubscribed 5M>% con¬

is

March

Co.

Denver

announced

Jan. 28 Nelson

Consolidated Gas, Electric Light & Power Co. o!
Baltimore
Dec. 24 it was stated that
company plans to issue and sell
both stocks and bonds
during 1952 to an amount suffi¬

&

&

was

General

that approximately $11,000,000 of additional
capital will
be required during the latter half of 1952.

March 22 it

;

announced that it is

it

Salomon Bros. & Hutzler.

Connecticut Light & Power Co.

Black, Chairman, said the board's plans call for provid¬
ing half of the new money through the sale of debentures
(since placed priately) and the remaining $25,000,000
through the sale of additional common stock which
tion.

Worth
25

vertible

was

.

on

1952

Underwriter—Dillon

March 1 it

...

stockholders will vote
May
approving issuance of $17,000,000 of 30-year first
mortgage bonds. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; The First Boston
27

Read & Co., Inc., New York.

stock to

Fori

March

Co. Inc.

was

Lynch, Pierce, Fenner &

Rhoades & Co. and Bear, Stearns & Co.
(jointly); White,
Weld & Co.

1952, and to
retire outstanding
$11,739,000 first and ref. mtge. bonds
and the remainder used for
capital improvements.
Un¬
derwriters—The First Boston Corp. and
Halsey, Stuart
&

stockholders, with Kidder,

$22,100,000 construction
budget for 1952 and $27,800,000 for 1953. This is
part
of a 10-year program estimated to
cost $332,000;000.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; Harriman Ripley & Co.
Inc.; Merrill
Lynch, Pierce, Fenner & Beane; Lehman
Brothers;
Shields & Co.; The First Boston
Corp.; Carl M. Loeb,

Chicago & Western Indiana RR.
March 17 company sought ICC permission to issue
$64,239,000 of general and collateral trust mortgage bonds
due May 1, 1982; without competitive

with 150,000 to 200,000 shares of new
ceeds—For construction program.

common

$28,000,000

and it

shares outstanding) to 225,000 shares to enable
company
to meet future capital requirements. .There are no im^

Central

permanent

authorized

announced that additional
financing will
to complete the company's construction
which is expected to cost about

necessary

is contemplated that new
capital needed will bec
obtained from the sale of common stock
and first mort¬
gage bonds.
Company has borrowed $4,000,000 under a
bank credit
recently arranged which provides for shortterm bank
borrowings of not more than $10,000,000. Pre¬
vious bond financing was done
privately. Common stock
may be offered to common

March 7 it

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility of equity
financing. On Feb. 18, stockholders voted to increase the

Corp.

was

program

First

Power

45

Underwriter—None.

—

stock

financing in April, 1949,

handled by
Co.; and Wegener
was

Blyth & Co., Inc.; Lazard Freres &
Daly Corp. Proceeds—To repay bank loans and for

&

construction
•

Illinois

April 9 it

program../

Bell
was

Telephone Co.

(7/1)

announced company intends to offer
common stock to shareholders
for

454 shares of its

scription

on

or

before July 1, 1952. Price—At

Continued

on

par

682,sub¬

($100

page 48

-

'

The Commercial and Financial Chronicle

(1534)

46

Continued from page

45

share). Proceeds—To repay advances from
Telephone & Telegraph Co. (owner of 99.31%
Bell stock). Underwriter—None.

per

$

Central

Illinois

American
of Illinois

Mississippi Power & Light Co.

(CST) on April 15 for

purchase from the company of $4,950,000 equipment
1, 1952 and to mature

the

in

sell

it

14

company

trust certificates to be dated May

bonds.

semi-annually from Nov. 1, 1952 to May 1, 1967, inclu¬
sive. Probable bidders: Halsey, Stuart & Co. Inc.; Bear,

bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.

Co., Salomon Bros. & Hutzler.

Stearns &
•

Central

Illinois

&

Jan.

29

working capital.

Development ("World Bank")
Feb. 5 it was reported bank expects to issue and sell

$50,000,000 to $100,000,000 additional bonds in
May.

it Iowa Power & Light Co.
March 31 it
shares of

April or

(5/14)

reported company plans to offer 226,928
stock to stockholders of record about

was

common

shares held;

May 14 at rate of one share for each seven

rights to expire May 28. Registration—Tentatively sched¬
uled for April 25.
Underwriter—Smith, Barney & Co.,
New York.

it Iowa Power & Light Co. (5/21)
March 31 it was reported company plans to issue and
sell $8,000,000 of first mortgage bonds. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; W. C.
Langley & Co., Union Securities Corp. and Glore, Forgan
& Co. (jointly); Smith, Barney & Co.; Lehman Brothers;
White, Weld & Co.; The First Boston Corp.; Kidder, Peabody & Co. Bids—Expected to be received on May 21.

repay

stock

mon

able bidder

mission

stockholders

Underwriters—W.

Hutton

E.

&

Pennsylvania

(jointly); Equitable Securities Corp.; Lehman Brothers
and Bear, Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.

Jan. 5

$20,000,000
for sale of
long-term
of relying

Gas

Kansas

&

Feb.

8

company

struct
Las

114-mile

a

forming on
shares

of

Halsey,

a

reported $12,000,000 in bonds and 200,000

common

Stuart

Inc.;

Co.

&

bidders

Probable

stock.

Lehman

for

Brothers;

bonds:-

Union

Securities Corp. and

Stone & Webster Securities Corp.
(jointly); Glore, Forgan & Co. and Goldman, Sachs &
Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); The First Boston
Corp. Probable bidders for stock: Union Securities Corp.;

Lehman

Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); The First Boston Corp. Registration—Expected
on April 30.
Bids—Tentatively expected on bonds up to
•noon and on stock up to 10:30 a.m.
(EST) on June 10.
Brothers;

Kentucky Utilities Co.
was reported company plans to issue and sell
April or May $12,000,000 30-year first mortgage bonds,

Dec. 10 it
in

series D.

Underwriters—To be determined by competibidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce, Fenner & Beane (jointly).

-tive
►

*
'

Vegas, Nev., at an estimated cost of $2,400,880, to
by sale of $1,600,000 first mortgage bonds,

$500,000 preferred stock and $402,500 common stock.
New

British

March 5 it

To be used for exploration
are

development, etc.

Properties

primarily in British Columbia, Alberta, and
Underwriter—Allen & Co., New York.

England Power Co.

Jan. 11 company received from SEC
authority to increase
authorized bank borrowings from $12,000,000 to

common

bonds

this

and

year

the

plans to finance in

McCarthy

(Glenn H.), Inc., Houston, Tex.
reported early registration is expected
of 10,000,000 shares of common stock. Price—To be sup¬
plied by amendment (probably at $2 per share). Under¬
March

18 it

was

writer—B. V. Christie &
Co.,

sale

of

additional

&

Chemicals

Houston, Texas.

Corp.,

Dallas, Tex.

(5/15)
March 24 it was reported
company plans registration of
162,500 shares of common stock (par 10 cents). Price—
| To be supplied by amendment (expected at $3 per
i share).
Proceeds—For new mill and equipment and
working capital.
Underwriter
Beer & Co., Dallas,
—

| Texas.
Oct. 31

Industries Corp.,

it Was announced

capitalization

in

,

the

company

near

future

N. Y.
plans to expand it»"
and to register its

;jsecurities with the SEC preliminary

-^offering, the'funds

to

to be used to build

projects in Israel.




a

large public

new

industrial

.

company

31

6

it

was

in

increase

an

.

■

'
'
stockholders will'vote

announced that

authorizing

on

/ '

indebtedness

to

Traditional

Underwriter

—

Smith, Barney &

Co., New

York.

Co. Inc.; Lehman Brothers; Blyth &
Co., Inc.; Equitable
Securities Corp. and Blair, Rollins & Co. Inc.

Pressed

(jointly);
Lynch, Pierce, Fenner & Beane; Harriman Rip¬
ley & Co., Inc.; The First Boston Corp.; Kuhn, Loeb &
Co.; Union Securities Corp. and Salomon Bros. & Hutzler

March 4 it

Car Co.,

Steel

Inc.

announced stockholders will vote

April
increasing the authorized common stock from 1,280,000 shares to 3,280,000 shares (1,045,500 shares pres-;
ently outstanding). The new shares would be issued
when directors decide, in connection with diversification
program. No immediate financing is planned. Traditional
Underwriter—Kuhn, Loeb & Co., New York.

Merrill

17

(jointly); Kidder,,Peabody & Co. and White, Weld & Co.
(jointly).
New England

Telephone & Telegraph Co.
20, F. A. Cosgrove, Vice-President, said a perma¬
nent financing program will have to be undertaken in
1952 to repay about $43,000,000 short-term bank borrow¬
ings. Underwriters—For bonds may be determined by

was

on

Dec.

Public Service Co. of

New

on

plan to create

a

mon)

expected to be initially offered. Proceeds—To
bank loans and for construction program. Under¬
writers
May be determined by competitive bidding.
Probable bidders:

and from

&

sale of

of

will vote

,

,

.

HP/I
writers—To
Hintarc

.

V\Q

be

.

on

„.

dolcummnJ

U..

determined

1- _•

_T

-

•

Beane.

/

Indiana

Service'

Co.

14, Indiana P. S. Commission authorized the company to issue and sell this year $10,000,000 of first mort-

bonds, series G.

gage
gram

estimated

to

$21,000,000 in 1953.
competitive bidding.
Co.

Proceeds—For

cost

about

construction pro-

$20,000,000

in

1952

and

Underwriters—To be determined by
Probable bidders: Halsey, Stuart &

Inc.; Lehman Brothers

and

Bear,

Stearns

&

•

_

_'

\

.

Public

to issue

sufficient

common

shares

to

raise

TT

•

Service

—..I

„

Electric

.

&

Gas

Co.

March

15 it was announced stockholders will vote
^April-21 on authorizing an issue of $40,000,000 deben^

Public

year

,

.

Northern

the

(jointly); Harriman Ripley & Co., Inc. (3) For common
stock—Kidded
Peabody & Co. Smd Blyth
& Co.,> Inc.
jL,
^
(jointly); Harriman Ripley & Co. and Lehman Brothers
(jointly).
/

by competitive bidding.
Probable bidders: Morgan
Stanley & Co. and The First
Boston Corp.
(jointly); Merrill Lynch, Pierce, Fenner &

Hampshire

—

stock

by 1,500,000
shares (11,094,663 shares presently
outstanding).
This would place company in a flexible
position
with re¬
-ffJ! -A
spect to formulation of future finance programs. Under-

of New

announced company

approximately $4,000,000. Proceeds — To retire bank
loans and for new construction. Underwriters
To be
determined by competitive bidding. Probable bidders:
(1), For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Coffin & Burr, Inc.
(jointly); White, Weld
& Co.; Kidder, Peabody & Co. and Blyth &
Co.; Inc.
(jointly). (2) For preferred stock — The First Boston
Corf).;' Kidder, Peabody & Co. and Blyth & Co., Inc.

Niagara Mohawk Power Corp.
common

was

intends, in May or
June, 1952, to issue $4,000,000 of first mortgage bonds
and $2,500,000 of preferred stock, and toward the end

Expected early in May.

stockholders

Corp.; Glore, Forgan

(jointly).

Public Service Co.

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;*
Morgan Stanley & Co.; White, Weld & Co.; Kuhn, Loeb &
Co.; Shields & Co.; The First Boston Corp.
Offering—*

announced

The First Boston

Co.; Kuhn, Loeb & Co. and Harriman Ripley & Co.,

Inc.

March 6 it

was

cumu¬

are

$50,000,000 of common stock to parent, American Tele¬
phone & Telegraph Co. will be used for new construc¬
tion.
Underwriters—To be determined by competitive

it

issue of 800,000 shares of

—

Proceeds—From sale of bonds

22

an

repay

Jersey Bell Telephone Co.

May 6 to increase authorized

,

lative preferred stock (par $25), of which between 400,000 and 800,000 shares (probably convertible into corh-

18 company filed a new

March

Indiana, Inc.

March 4 it was' announced stockholders will vote April 7

competitive bidding. Probable bidders: Halsey, Stuart A
Co. Inc.; Morgan Stanley & Co. In case of common stock
financing there will be no underwriting.

March

Middle East

that

$25,000,000, the funds to be used for capital expenditures.:

(New England Electric System).
Underwriters—For bonds, to be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &

,

Metals

Electric Co.

announced

it Philco Corp.
March

June

stock to parent

bonds.

company

was

Beane; Paine, Webber, Jackson & Curtis.

$16,-*
000,000. A major portion of this indebtedness may be
financed through issuance and sale of $7,500,000 first
mortgage

it

Pittsburgh, Pa.
April 7 stockholders were offered the right to subscribe
on or before April 22 a total of 200,000 additional shares
of capital stock (par $20) at rate of one new share for
each three shares held. Price—$40 per share. Proceeds
—To increase capital and surplus. Underwriters — The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &

located

New

use-

of the"

it Peoples First National Bank & Trust Co.,

sale of

announced

.

;

Co., Ltd.

part

was

its 1952 $41,000,000 construction program by the
$35,000,000 of new securities. Underwriters—For
/ any common stock, may be Blyth & Co., Inc. and The
t
First Boston Corp. (jointly); for any preferred, W. C.
Langley & Co., and for any bonds to be determined by
j competitive bidding, with the following probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and
; The First Boston Corp. (jointly); W. C. Langley & Co.;
:
Smith, Barney & Co.

i

Oil

was

$70,000,000 financing pro¬
gram with the New Jersey Board of Public Utility Com¬
missioners, which will include $20,000,000 of long-term

March 5 it

;

Dominion

reported company plans offering of about
1,000,000 shares of additional common stock. Proceeds—

Feb.

Long Island Lighting Co.

■'>

applied to FPC for authority to con¬
pipeline from near Topock, Ariz., to

be financed

(6/10)

Electric Co.

Murray Gill, President, announced that company
will probably bring an offering of securities to market
in the next few months, but the amount is still un¬
decided. Investment groups had been said to have been

Pipe Line Co., Las Vegas,

Nevada

Montana.
Feb. 29,

Gas

cost

* .til
plans to spend
about $26,000,000 for expansion in 1952, to be financed,
in part, by the sale of about $9,000,000 first mortgage
bonds, $4,500,000 of preferred stock and $4,500,000 of
common stock (the latter issue to parent, General PublicUtilities Corp). Underwriters—For bonds and preferred<
stock to be determined by competitive bidding. Probablebidders: (1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co.; Union Securities Corp. and White,%
Weld & Co. (jointly); Kuhn, Loeb & Co.; A. C. Allyn
& Co., Inc.; Equitable Securities Corp.; Shields & Co.,
and R. W. Pressprich & Co. (jointly). (2) for preferred—*
Smith, Barney & Co. and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. and Glore, Forgan & Co/
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and'
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co., Inc. Offering—Expected in mid-year.

Co.,

short-term loans.

Natural

The estimated overall

is
approximately * $92,000,000.
Underwriter—'
Morgan Stanley & Co., New York. Financing—Not ex¬
pected until after Provincial elections in April.
'

announced stockholders will vote April 2

increasing authorized indebtedness from
to $50,000,000. There are no immediate plans
any securities, but company may start using
bank loans to secure working capital instead
on

Nevada

Stuart & Co. Inc.

Co.

project

National Supply Co.

on

City Power & Light Co.
company
announced that it plans to issue
and sell in 1952 about $12,000,000 principal amount first;
mortgage bonds (this is in addition to present preferred
and common stock financing. Underwriters—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly); The First
Boston Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
omon
Bros.
&
Hutzler
and
Union
Securities Corp.
4

Gas

portion to be returned to Canada for

a

in British Columbia.

com¬

Kansas

Jan.

Natural

system in* the Pacific Northwest to transport/
Canada to markets in Idaho, Washington and

Oregon, with

will" vots-

Cincinnati, Ohio, and Blyth & Co., Inc., New York.

was

stock (about-

common stocks

Jan. 7 company filed amended application with FPC ioconnection with its plan to build a natural gas trans¬

to 5,000,000 shares in order
for the opportunities and require¬
years." No immediate plans have
been made for the issuance of any additional common

March 7 it

bonds only: Halsey,

on

Northwest

2,500,000

Traditional

common

program.'
be in the

(jointly); Equitable Securities Corp.; Union Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬

"to prepare company
ments of the coming

stock.

will

gas from

proposal to increase the authorized

from

construction
needed

Underwriters—To be determined by competi¬
bidding. Probable bidders for stock and bonds:
Barney & Co.; The First Boston Corp.; Glore,Forgan & .Co.; Lehman Brothers and Riter & Co.

$11,000,000 bank loans and to loan

National Gypsum Co.
Feb.
20
it
was
announced
a

its

Smith

Corp.; White, Weld & Co.; Harriman Ripley & Co., Inc.
Bids—Expected on or about May 20.

on

finance

the amount

tive

$7,000,000 to subsidiaries. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,.
Stuart & Co. Inc.; Blyth & Co., Inc.; The First Boston

March 25

to
of

1,100,000 shares) the latter issued first to

iTuel Gas Co., N. Y. (5/20)
company applied to SEC for authority to Issue
$18,000,000 of sinking fund debentures due 1977.

Proceeds—To

Bank for Reconstruction and

year

holders.

Corp.

Beane; Union Securities

this

two-thirds

form of debt issues and the balance

National

and sell

International

500,000
About

Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner

RR.

applied to ICC for authority to issue
and sell $25,000,000 414% consolidated mortgage bonds
due
1982, without competitive bidding.
Proceeds—To
meet 1952-1955 bond maturities and to replace depleted
March 28 company

*

reported

was

Thursday, April 10, 1952

Northern States Power Co.
(Minn.)
Jan. 16, B. F. Braheney,
President, announced that com¬
pany will have to raise between $30,000,000 and $32,-*

plans to issue and
November an issue of $8,000,000 first mortgage
Underwriters—To be determined by competitive

March

.

.

(jointly); The First Boston Corp.; Equitable Securities
Corp.; White, Weld & Co.; Union Securities Corp.; Cen«
tral Republic Co. (Inc.), Blyth & Co.,
Inc., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Harriman
Ripley & Co., Inc.

it Minabi Exploration Co., Houston, Tex.
March 21 it was reported early registration is expected
of 125,000 shares of common stock. Proceeds—To go to
certain selling stockholders.
Underwriter — Moroney,
Beissner & Co., Houston, Tex.

(4/15)

RR.

Bids will be received up to noon

.

tures,

which may be sold this spring or summer together with about $20,000,000 additional common stock,

proceeds will be used for the company's construction
In November, the company sold through Morgah Stanley & Co., Drexel & Co. and Glore, Forgan'&

..program.

Coran issue of 249,942 shares of 4.70% cumulative

Co^lfe^ed,, stock (par.$100).

pre-

Volume

175

Number 5106

.

.

The Commercial and Financial Chronicle

.

(1535)
,

Rainbow Oil Co. of Calgary, Ltd.
March 18 it was reported that early registration is ex¬
pected of around 350,000 shares of common stock (value
about $2,500,000)..
Underwriters—Hay den, Stone & Co.,
New York, and T. H. Jones &
Co., Cleveland, Ohio.
Robertson
Nov.

it

16

1952, vote

stockholders

will

in

250,000

com¬

Nov.

shares

(all outstanding) to
000,000 shares in Older to make additional stock available,
for such corporate purposes as

acquisition of new proper¬
ties, to provide additional ^pital. funds or declaration ov
stock-dividends.
5> •"' \
!j.V
Scott

Paper

March 7 it

will

Co.

and sell later

ceeds—To

i.

-,v

.'-V'

;

this, year additional

raise

contemplated

increase

investments

in

May be determined
;

by

stock.

subsidiaries

therance of their construction programs.

14

it

the

late

issue

an

of convertible

bank

of

to

Power &
7

SEC

bidders

struction.

It

is

intended

be

may

(1)

&

Weld

&

Light & Telephone Co.,

March 31 it

was

11

on

sued

funds

as

Feb. 12 it

new

from

construction.

Dealer- >

(Inc.), Chicago, 111., and

announced stockholders will vote

was

Stearns

(jointly); Blyth & Co., Inc.; Union Securities

Blyth & Co., Inc.; (jointly); Union Securities Corp. and

Corp. and Equitable Securities Corp. (jointly); Harriman

Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;

March

Kidder, Peabody & Co.

to issue and sell

and

stock

Westinghouse Air Brake Co.

bidding.

&

Brothers

common

The First Trust Co. of Linclon. Neb.

der, Peabody & Co. and Merrill Lynch, Pierce, Fenner

Co.; Lehman

needed for

are

Managers—Harris, Hall & Co.

For bonds—Halsey, Stuart & Co.

&

Inc.

that stockholders will vote

increasing authorized

Inc.;

Weld

announced

400,000 to 500,000 shares, the additional shares to be is¬

to

up

proposed

(jointly); (2) for bonds only: Halsey,

★ Western

borrow

competitive

Co.

bidders: Lehman Brothers; Morgan Stanley & Co.; Kid-

White,

of

bidders: (1) For stock or bonds:
Inc.; Smith, Barney & Co. and White,
(jointly); W. C. Langley & Co. and The

include

the bank loans from

by

Co.,

Under¬

financing in the fall. Under¬

determined

Probable bidders:

care

Stuart & Co. Inc.

the money for new con¬

to repay

the proceeds of permanent

writers—May

to

company

take

Probable

year.

April

use

to

finance

First Boston Corp.

must

Light Co.

authorized

$10,000,000 from banks and

Probable

outstanding)

Brothers.

Utah
March

fur¬

common

disposed of by Electric Bond & Share Co.
probable

funds

authority to make
$40,000,000, the proceeds to be used
contemporarily, in part, the company's con¬
struction program. Permanent
financing expected later

Stone

and

shares of

total

other

Jan. 9 company applied to the SEC for
bank borrowings of

Blyth
3,165,781

and

Washington Water Power Co.

issuance and

preferred stock.

this

that

competitive,

loans

$6,000,000 expansion program.

Corp.
ruled

reported that company is
considering plans to
about $4,500,000 from the sale of
additional com¬
stock to its stockholders

mon

Corp., New York.

(approximately 27%

Lehman

12

(there are presently out¬
standing 734,400 shares). Underwriters—The First Bos¬
ton Corp. and
Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders. Proceeds—Together with

stock is

reported company plans

was

SEC

writers—If

Pro¬

in

6

stock
be

Underwriters-

competitive bidding.

before

common

Webster Securities

Feb.

i

...

common

Washington Gas Light Co.

to

4

is planning to issue

company

expects

company

is

United Gas

announced

the

Underwriters—Probably White, Weld & Co.

April 21 and the offering first to common
-stockholders of an additional
150,000 shares at probably
around $17.50 per share, with
any unsubscribed shares
to be publicly offered.
Underwriters—R. S. Dickson &
Co.; G. H. Crawford & Co.

was

that

Jan.

&

stock split on

it

reported

sale this Fall of

March 21 stockholders voted to increase
authorized com¬
mon stock from
300,000 shares (288,594 shares outstand¬
ing) to 1,000,000 shares in order to provide for a 2-for-l

8

was

to

March

$4,000,000 to $25,000;000. The company said
later any plans- for future

announce

Southern

Halsey, Stuart'
Co. Inc.; Union Securities
Corp.; Salomon Bros.
Hutzler; Stone & Webster Securities Corp.; White, Weld(
& Co.; Kuhn, Loeb & Co. and
Wertheim & Co.
(jointly)..
&

approximately $46,500,000 for expansion in 1952
1955, and it has been stated that no further financing

'•'it Sonoco Products Co.

Feb.

sale is expected in the fall.
Underwriters—
stock, probably Stone & Webster Securities
Corp.
bonds, to be determined by competitive bid-*
ding, with the following probable bidders:
For

Transcontinental Gas Pipe Line Corp.

financing.
.Underwriters—Drexel & Co.; Merrill Lynch, Pierce, Fen¬
ner &
Beane; and Smith, Barney & Co.

.

it

20

bond

For

1952, when about 400,000
anticipated. Probable bidders:
Pierce, .Fenner & Beane; W. C. Langley
& Co.;
Lehman Brothers and Smith,- Barney & Co
(jointly).

"'v"

..

A

Merrill Lynch,

announced stockholders will vote April
24 on increasing the authorized common
stock from 3,000,000 to 5,000,00(1 {shares^ and the authorized indebt¬
it

Co., Houston, Tex.

spend

shares of

was

edness from

Gas

company

Toledo Edison Co.

April

proposal to increase the authorized

from

17

applied to FPC for authority to con¬
struct a 1,350-mile natural gas transmission line
extend¬
ing from Texas into West Virginia. The project is esti¬
mated to cost $184,989,683.
Underwriter—Kidder, Peabody & Co., New York.

Co.r Pittsburgh, Pa.

announced

was

on- a

stock

mon

(H.; HO

Texas-Ohio
Oct.

47

increasing

on

Bear,

common

stock

(par $10)

from

April 15
4,200,000

*

Beane

'Ripley & Co. Inc.

iv

.

..

..

&

Southern Natural Gas Co.

March 3

;

sion

to

program

bring

natural

Georgia and Mississippi service

into

gas

its

The

First

(2) For

March

Gas

Transmission

Lynch,

28 stockholders

ized preferred

approved

an

to

provide

for

planned to issue and sell this

increase in

preferred shares and

a

future

year

shares

and

and

Pierce,

Fenner

&

Beane

small amount of

filed

an

Underwriter—To

petitive bidding.
& Co.

Registration—Of stock,

with SEC for authority

Proceeds—To repay bank loans and for

construction.

Lehman

application

$4,000,000 of first mortgage bonds, series

be' determined

by'

new

com¬

Probable underwriters: Halsey, Stuart

Inc.; Kuhn,-Loeb & Co. and Union Securities Corp.

(jointly); The First Boston Corp.; Merrill Lynch, Pierce
Fenner

& Beane.

author¬

(all issued)

Virginia Electric & Power Co.

to

Dec.

financing.. It is
of the

100,000

27

C, due 1982.

Smith, Bar¬

(jointly);

(about 4,123,000 outstanding) to 7,500,000 shares.

Worcester County Electric Co., Worcester, Mass.

probably in August, and of bonds in September.

stock from 600,000 shares

1,000,000 shares

t

Co.

Corp.

stock—Blyth

common

Corp.

Brothers; The First Boston Corp.
it Tennessee

Boston

& Co. (jointly); Kidder, Peabody & Co. and Merrill

ney

Alabama,

(jointly);

(jointly); Union Securities

expan¬

areas.

Co.

Co., Inc., W. C. Langley & Co. and Glore, Forgan &

Co.

company filed with FPC a $76,000,000

&

which

announced that company expects to

was

$40,000,000

new

shares.

common

12 it

for

new

construction

$30,000,000

ma#

be

or

about

Yale & Towne

more

raised

in

March 11 it

spend

1952,

through

for

new

Manufacturing Co.

announced stockholders will vote

approving issuance of 150,000 shares of

on

of

was

property and also

an

April 17

common

stock

additional

163,344 shares

purposes.

Previous offer (to

as

Proceeds—For 1952 expansion program estimated to cost

financing.

about

approved plans to issue and sell in June approximately

stockholders in June, 1951) was underwritten by Morgan

495,000 shares of

Stanley & Co., New York.

$59,000,000.

Underwriters—Stone

Webster

&

Se¬

curities Corp. and White, Weld &
Co.* New York.

;

Next

•

Tuesday.

due

This

up

Sale

issuer with

the

of

$60,000,000

debentures,

Gas

for

25-year

per

Columbia

is

largest

System's

On

funds for

be

wire

a

this week
This
in

was

the

with

a

relatively quiet week
issue

new

the

Plans

business

business

perioch

and

•

was

Slow

had

difficulties

settled'

service restored
the

period

imakings
find

dealer

of

ahead

has

week

a

underwriters

organizations

all

which

and

their

assured

A

total

of

takings is
and

of

13

corporate

the

on

issue

under¬

calendar

quite naturally to the liking

the

investment

bankers"

the realm of

competitive bidding.
Eleven of the thirteen pieces of
are

slated to be handled

by the Negotiated route. As might
be indicated a goodly
part of the

business,1

seven

out

consists of equity
The biggest
ness

Line

on

the

total,

financing.
Service Pipe

$90,000,000 of 30-year

debentures. This issue is slated

Wednesday arid Will

for

provide funds

ft* tht» Fetiremeiit Of bank
loalur
and
(if finance
expansion
and

Mnrnsmmtrm:




where

new

cates

are

underwriting

DIVIDEND NOTICES

the

case

of

COLOMBIA PICTURES
DIVIDEND NOTICES

CORPORATION
The Board of Directors at

Power

the

and

$100

per

bonds

lowest

drew

101.7759.*

102.157

bond

or

23.2

under

the

GAS SYSTEM, INC.

week

the

of

102.973

for

reoffering

declared this day

The Board of Directors has
the

$1.06J4 per share on the
Cumulative Preferred

able May

following regular quarterly dividend:

holders

Common Stock

payable

on

3.11%, the issue was slug¬
gish at the start, but banks acting

for

April 3, 1952

Normal procedure is to carry on

DIVIDEND NOTICE

close of business

15,1952, to stock¬
record
May 1,

of

1952.

A.

SCHNEIDER,

April 19, 1952.
Dale Parker

Secretary

some

large.

graph.

communication by tele¬
But if the strike persists*

it

become

C7

necessary

will

necessary

to

COMBUSTION ENGINEERING-

AMERICAN VISCOSE

SUPERHEATER, INC.

CORPORATION

rely

heavily on the air mails to
get things through.
very

Illinois

Illinois

Bell

Dividend No. 193

Bell

A
quarterly dividend of seventy-five cents
(75c) per share on all the outstanding stock of
Company has been declared payable
April

Telephone

Telephone

the

28,

Co.'s

of

1952 to
business

stockholders

April

$25,000,000 of first mortgage, 32-

of

record

at

the

close"
cose

1952.

W.

STRAUSS, Treasurer.

bonds, brought out bids from

year

four syndicates

evident

and there

measure

of

was

difference

The

successful

■2%-%

a

and

coupon

bonds at

group

price of

101.525 for

clared
and

as

MEETING NOTICE

was

$100

of

the

willhirigf bid" and* that; of the ruriner-up.

But

The
folk
office

between

the

four bids-fixed-a

lowest'

of

at

their regular

April 2, 1952, de¬

dividends

the

WESTERN

Virginia,

on

to

Annual

RAILWAY

of

one

on

cents

dollar

($1.25)

ihe five percent

CONCRETE
140 Cedar

and

Western

pursuant
of

coniihdri
Nor¬

the

Railway
Company will
b?
to the By-laws, at the principal
Company in Roanoke, Virginia,

Thursday,. May 8, 1952, at 10 o'clock A. M.,

elect four Director's for a term of three years.
Stockholders of record at the. clojse of business

April-18, 1952,
meetihg.
By

""
order of

will be entitled
-

to

vbte'at such

on

share

oti

the

stock, both payable Ort!

May 1, 1952,
record

per

at the

to

shareholders of

close of business

April516, 1952;

Board

of
W.

Directors,
COX, Secretary.

CO.

Heavy Construction
The Board of Directors has this

day declared

regular quarterly
share and an
dividend of 25* per share
a

dividend Of 50* pet*
extra

Oh the CerhmOri

able

stock, both pay¬

May 1, 1952 to stock¬
holders of record on April 21,
on

1952. i

WILLIAM H. BROWN

'

the

PILE

Street, New York 6, N. Y.,

Soil Investigations*Foundations

per

(5%)

cumulative preferred stock and

fifty cents (50£)

April

Meeting of Stockholders of

L.

price of 100.302

twenty-five

share

7, 1952.
NOTICE OP ANNUAL MEETING
OP STOCKHOLDERS
.

spread of 19 cents

bonds

on

COMPANY

held,
a

AND

Roanoke,

the

reoffering to

yield 3.05%.
There

NORFOLK

paid the
for a

101.05

repriced

Corporation

meeting

an

regarded pricing ideas.

per

14,

OTTO

Dividend Notice

Directors of the American Vis¬

Secretary

***

Vice-Pres. and Treas

May 15, 1952, to holders of record

to yield

of-town insurance firms and

quarterly dividend

$4.25

at

pension funds, along with out-

a

Stock of the company, pay¬

No, 71, 2r(ty per share

Priced at

a

meeting held April 2, 1952,

3J/4S the highest being1

as

syndi¬

company

single piece of busi¬

the roster is

Cd.'s

of

the

as

Much

situation ruled in the

same

a

after

the Illinois Bell issue.

winner.

full

and

opened.

showed

while

THE COLUMBIA

The runner-up bid

and'

those engaged in the distribution
of these securities,
only two are in

business

mar¬

approaches* This is especially
case

Start

a

of

plenty of business to occupy their
time.
.

to

cents

the

Friday.

will

came

102.389

,

munity's

the

laid

ket.

being

At

two

hanks

to nibble

were

declared

Consumers
five bids

But it's a safe guess that the
by the financial com¬
observance
of •> Good" banking world would like to see

shortened

But

strike

pretty well

for the issues which

what

savings

^advisable for other

$25,000,000 of 35-year bonds, were
a
bit
slow
in getting away to

good time for it.

been

local

tendency

major under¬
takings, that of Illinois Bell Tele¬
phone and Consumers Power Co.'s

indus¬

telephone

a

$7.48

or

$1,000 bonds.

week's

deemed

have

(first to stockholders).

spread of 74.8 cents

a

directors

if there had to! ultimate investors.

is concerned;

try

stock

common

This

:

expan¬

securities

the

as

reported

was

books

Communications
far

it

15

for bids' on
will provide

sion.

As

Feb.

Ml if. UPSON. Chairman of Bohrd'
W1 V. MtMKNIMKN, President
ApHtz, mz
mmm

The Commercial and Financial Chronicle
«

Thursday, April 10, 1952

...

(1536)
the lefties among the professional

BUSINESS BUZZ

Democratic

plished leader.

accom¬

,

•

•

•

prefer' a

politicians

seasoned, balanced,

more

(This column is intended to re¬

BeVmJ-the-Scene Interpretations
from the Nation'*

flect the "behind the scene" inter¬
pretation from the nation's Capital

And You

Capital

and may or may not coincide with
the "Chronicle's" own views.)

"A" cannot borrow
C.—If any ownership.
fright from his bank to buy a ham¬
that President Truman, out of a burger stand from "B." One rail¬
road could not
borrow to buy
sudden concern with the rights
of states, is likely to run out on another, no matter how good a
them
and abandon some of his bargain it was offered.
The philosophy of this rule
;$acial programs, they can just foris that where a man can sell out
get it.
Just
before
Charley
Wilson to a buyer with borrowed money,
the seller is placed in funds and
■abandoned his forlorn effort to
this is inflationary. Sales may be
tajperate the defense mobilization
financed
with borrowed money
•program, he got a letter from Mr.
in case of death, business failure,
Truman suggesting that the volor for other distress causes not in
Temtary credit restraint program
the ordinary course of business.
abandon its practice of killing off
For two months after this deci¬
estate and local borrowing which
the Voluntary
Credit Re¬
the VCR Committee adjudged to sion
straint
Committee
had intense
fee of an inflationary character^
D.

WASHINGTON,

"■liberals" have developed a

*

"One feature of the program
has, however, worried me from
the start,"
the President wrote

put upon it by the White
Agents of the Attorney
General were combing its records.

the veto

Public Power Baron
two solid weeks
searching the records of VCR to
see
if they could find just one

r

Wilson. That feature was

Our Business Heritage—Current

issue

House.

articles, reports and organizations
which interpret the American sys¬

of

Presi¬ Treasury debt to the Federal Re¬

them

taken

th6

VCR

away.

black¬
balling any state or local bond
$ratte or other borrowing, even if
used

are

such

for

FR to

his

national Adminis¬

a

these recommendations and

expected to result in
posal

veterans' bonus.

Federal

however, it

or

be authoritatively reported,
tfcat the President has abandoned

is not

Reserve

even

to

the

Administration.

the

a

pro¬

subordinate the

to directly

propose some

aooay

unlikely to

long study particularly

patently inflationary purpose as a
This does not mean,

the

The Congressman is
renew

in

Treasury
He

may

ideas about greater

supervision and liaison which will

Federal govern- be unpalatable to the Federal Re¬
syjetit shall regulate the relation¬ serve, but he is expected to stop
ships between buyer and seller, short considerably of submerging
4*mployer
and
employee,
or the independence of the Federal
doctor and patient, even though Reserve in making monetary pol¬
jgor the first 160 years of the na-; icy.:- .\vL.
the idea that the

*

*

*

reductions

V,1,

■

restore

to

Senate

election year.

an

save

tration.

henceforth is barred from

funds

an

was

interest," and he
advocate of subordinating

"to

serve

this

For

glimmer of hope,
that there may
be after all a prospect for genuine
reduction in appropriations this
It's only a faint

voted

it

reason

the

of

many

thrill

the prospects for econ¬

over

omy.

omy.

lion

of

House

v

Committee

off in

excess

have

■

■
■

;>

There

expenditures—either the
or
the House Appropria¬

tions

....

ticians

*

who

vately

of $1.6 billions.

isn't

that

worth

and local govern¬

wanting

veterans

of

or

bonuses.

•

for

explanation

local

Presi¬

the

in taking state and

dent's action

borrowing

out

from under

VCR. That is public power.
it

'When

proposed

was

decline

not

single

individual

hearing

a

who

to

asked

> a

to

.

There is said to be one and only
€iae

did

to

sell

from

Far

appear.

hearing into

a

turning the
drumhead court for

"funny money," Rep. Patman
peared

to

most

witnesses

will be in the actual appro¬

priation.
Even

the

to

"PUDS" or
districts
in
the

seven

utility

public

turned

Northwest,

VCR

down

bond issue

on

a

thumbs

by

which

4he public power boys would have

gobbled
j

1;

up.

company.
<

VCR

thisprivate

power
?

•

turned

it

down

not

•

be-

j -cause it is a
j

that no

standing VCR rule
bank loan or bond issue

dshall be approved merely for the

j

purpose of

effecting

a




actual

military

a

tenth

the

of

without

outside

a

southern

Tennessee.

New York.

With Floyd A.

Allen Co.

(Special to The Financial Chronicle)

ANGELES,

1

Calif.—Bonar

D. Collinson has become affiliated
with

Floyd A. Allen & Co., Inc.,

650 South Grand Avenue.

Joins

Blyth Co. Staff

i

(Special to The Financial Chronicle)

LOS

ANGELES,

For

And

Large Appreciation Potential
WE

SUGGEST

RIVERSIDE CEMENT CO.
CLASS B
A

leading

in

(common) STOCK
producer of

fast-growing

cement

Southern

California.

Analysis
a

this Company

of

the

review of

try

available

Available

and

Cement Indus-*

on

request.

aro

und

HM

LERNER & CO.
Investment

10 Post Office

Securities

Square, Boston 9, Mass.
.Teletype

Telephone

BS 69

HUbbard 2-1990

Trading Markets in

^

FIRM TRADING MARKETS

Despite the long and tedious
hearings before the Interstate and
Foreign Commerce Committee on

FOREIGN

the

f".ARL MARKS A r.O- IMC,

transportation problem, there
no prospect of favorable

is almost

SECURITIES

Allied Electric

Products
Common

and

Preferred

"

action

this

proposals

year

either

on

to

the

various

improve

the
rate-making base or speed up the
combersome procedure by which

FOREIGN SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HAN0YER 2-0050...TELETYPE: NY 1-971

the Interstate Commerce Commis¬

sion

eventually and tardily

change in through

with

Hill,Thompsons Co.,Inc.
Trading Department

70 WALL

comes

"too little and too

STREET, N. Y. S

Tel. WHitehal! 4-4540
in

>

Calif. —Ray¬

a

rather mature, subdued and con¬
siderate
judge who wanted to
hear all parties out;

describing current opportunities—
Sidney Fried—$2.00 per copy or
send for free
descriptive folder
—Dept. C, R. H. M. Associates,
220 Fifth Avenue New York 1,

news¬

left-wing crowd. He will

virtually

delegate

Discussing war¬
phases and

rants in their different

ap¬

as

Puget Sound Power & Light
^Company

strictly
be

,

if

Warrants:

test, of course,, will print it is getting out of the pri¬

The major

ance

Merits of Common

Speculative
Stock

mond A. Johnson has joined the
many poli¬
staff of Blyth &
Co., Inc., 215
TV star dust West Sixth Street. He was pre¬
who are saying pri¬ viously with Weedon & Co.
the Kefauver boom

.

ments,

quest.

no

history

Oilier of state

gle copies; quantity prices on re¬

*

*

get

in their eyes

skimmed

Education,

great

a

are

Economic

for

Inc., Irvington-on-Hudsor4 New
York—Paper—No charge for sin¬

LOS

However, what makes this re¬
session, so as to save a consider¬
able chunk of the proposed $85 port significant is that the success
achieved so far or proposed has
billion of expenditures for the fis¬
come from the very sources which
cal year 1953.
in January had about concluded
In
dealing with
that "paltry
it would not be possible this year
nothing" which the government
to achieve any substantial econ¬
spends for "non-security" pur¬

poses—for such is the blithe way
the Administration treats $20 bil¬

dation

the House.
is premature,

Congressmen advise, to enjoy any

but there is a sign

United

the

Rights and

Nations—Russell J. Clincy—Foun¬

by

these relationships
the
defense
appropriation, mary "popularity contests." ;
Actually, Rep. Patman gave the be
"were governed by "actions which
clear impression of having defi¬ which the committee has proposed
In the first place, say these in¬
bad
been
decided
on
through nitely learned something by the to reduce by $4Y4 billion.
dividuals, the junior Senator from
democratic processes by State and;
hearings, and of having profited
There are entirely responsible Tennessee obviously is not popu¬
local governments."
by what he learned in modifying observers among the appropriators lar with Harry Truman. Despite
Likewise this intervention by his views. Mr. Patman has become
Truman's
"abdication," the
of Congress who are soberly will¬ Mr.
the President to take state and a more mellow man.
President will still influence a lot
ing to bet that when Congress has
^"tocal borrowing out from under
delegates in the Democratic
What has pleased witnesses be¬ finally passed the appropriations, of
VCR does not mean, as some have
And Harry Truman,
fore the Patman hearings, how¬ as distinguished from the authori¬ convention.
reported, that on this score the
so these observers note, never for¬
ever, has- been the liberality with zation
legislation,
foreign arms
"White House has again yielded
which he listened to views con¬ and economic aid will be cut ex¬ gets. Particularly he will not for¬
ta the Big Labor boys, who pub¬
trary to those he was alleged to actly in half, from the $7.9 bil¬ get that
the Crime
Committee
licly and violently attacked this
hold. The chairman of this special lion proposed by the President.
which
Estes
Kefauver
headed
VCR program.
j
committee took pains to let any
Furthermore, this action is also
Part of this cut will be in the started to send Harry on the skids.
and all advocates of all points of
mt a reflection of the influence
Kefauver's
pull
is
from
the
view have their full say, and he authorization legislation. The bal¬
tkm's

Cleve¬

14, Ohio—Paper.

Hiiman

viated from the rule with respect

to restrain
credit to the VCR Committee, the
Resident can take them away. He

—

Bureau,

Public Library,

Cleveland
land

industry

and

Information

Business

of State and local to refusing borrowed money to
jguvernments in matters which finance changes in private owner¬
^tojould
be
decided, under our ship.
*
*
*
scheme of government, by State
"We're going to hold 'open house' today, Fuzzmore—
Now that the "Patman Com¬
and local initiative., While some
er
wouldn't you like to take the day off and go home?"
feond issues which would clearly mittee" has concluded its hearings
feave been inflationary have been about the Federal Reserve sys¬
and
Treasury
financing, late" relief for the carriers from spending allowance is cut as much
prevented in this fashion, it has tem
as the House Committee proposes
idiecessarily resulted in disapprov¬ there is an unanimous agreement constantly rising labor and other
Rep.
Wright Patman costs. This subject is one of those it still remains to see whether the
ing actions which have been de¬ that
cided
on
through
democratic (D., Tex.) was the greatest sur¬ which is just too big and time- Senate will go along. As of this
Senate
Committee
consuming to permit action this writing the
processes by State and local gov¬ prise of the entire hearing.
had not reported out a single sup¬
ernments," the President observed.
Mr. Patman had long advocated year. It is also a subject of such
ply bill. It is customary for the
Bince the set-up of the Defense a
shifting
of
about
half
the controversy as to preclude action
Production Act is that the

business

in

tem

posed actions

dent gives the powers

noting references to books,

de¬

VCR had

which

in

instance

restricted the pro¬

has

ernment

ingston—Harper & Brothers, 49
33rd Street, New York 16,

East

N. Y.—Cloth—$5.

Chapman spent

Gov¬

that the Federal

h\ effect,

for the
Rob¬

by

and A. Kip Liv¬

pressure

Agents

-Vfcy VCR of state and local bond
issues for inflationary purposes.
"This arrangement has meant,

Business—Edited
Holzman

S.

ert

Methods

Business

Big
Small