Full text of Commercial and Financial Chronicle : April 15, 1954, Vol. 179, No. 5316

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

*2

UNIVfei kS?TY
op
Michigan

CHEMICAL INDUSTRY FEATURED IN THIS ISSUE
APR 16 1954

Commercial
Pat. Office

Rear. U. S

Volume 179

New York 7,

Number 5316

EDITORIAL

H

e

See It

sending to Congress his recent message on
policy, the President laid
down a challenge to the extreme protectionists in

By HON. GEORGE M. HUMPHREY*

international economic

By WALTER J. MURPHY*

Secretary of the Treasury

Editor, "Chemical and Engineering News"

'

i.

Prefacing his remarks by declaring our present tax sys¬
a hodgepodge, Secy. Humphrey outlines as main
points in the Tax Revision Bill before Congress: (1) it
is a tax reform and not a tax reduction measure; (2)

Dr.

it

The Republican party has fully earned
its standing as the protectionist party. It has al¬
ways had within its ranks the extremists on this
issue, as well as a good many others who were

his party.

outstanding chemical developments: (1) the catalytic * '
and thermal cracking of oil;' (2) the Frasch Process of }

tem is

■mmMmMMmmmMMmmmmmmMMMmmmm

est

opportunity to tell in

think the tax revision
committee is so

Many, many years ago, indeed, back in the days of

bringing

.

The
open

Treasury appreciates the

session here today why
bill

employment philosophy of government
inherent in the Employment Act of 1946 which was
the theme of the paper by Dr. Carl Wiegand, Pro¬
fessor of Economics at the University of Mississippi,

of

the

full

published in The "Chronicle" of April 8 under the
caption, "Full Employment and Its Dangers." The
writers of the majority of the letters condemn the

now

we

before your

tremendously important to the fu¬
ture of this country. Before I go into
the

,

I

reasons

most

employment philosophy" and contend that the
tool to implement such a philosophy in the
final analysis must be a gigantic public works pro¬
gram.

rewritten in 1876.

that taking money from one group to
provide purchasing power for another segment of
our
economy adds nothing net to the purchasing
power of the country and
(Continued on page 35)
They

say

,

be

tax

proper

take

tax

billion.

George M. Humphrey

might

million,

$294
the

cratic

It is obvious that

when the total Federal tax take
very

was

well

not

laws in 1954, when
is
upwards of $60

And it is also true of many

i

ciprocal trade agreements and the like, has not
been free of a good deal of the same sort of

on

asking for much, and
(HR
D.

strange
an al¬

smoke

among

in

most

U. S. Government,

Municipal

page

the banker and

Securities
telephone:

ON

83001

C., April 7,

Continued

—-

address' by

♦An
of

1954

REGISTRATION

MARKETS

CALL *

ONE

HAnover 2-3700

Chemical

—

Commerce,

Established

STATE

Mr.

March

Murphy

31,

All Corporate

before

COMPANY

BONDS

^

Members N. Y. and Amer.

115 Broadway, N.
Bell System

★

Y. 6

Stock

New

THE NATIONAL CITY BANK

RE 2-2820

WALL

STREET

to
NEW YORK

To

Active

Dealers,

—

Refined

—

t.l.WATSON &.CO.
Liquid

Exports—Imports—Futures
50 BROADWAY, N.




BRIDGEPORT

Y.

PERTH AMBOY

Orders

Trade

Exchange

•

Detroit

Beach

Pla.

•

Bond Department

Exchanges

other

•

•

Bldg.

N. Y.
Pittsburgh

Coral Gables

Geneva,

THE

CHASE

NATIONAL BANK
OF THI CITY

OF NEW YORK

Switzerland

Holland

Maintained

and

Brokers

Ebcecuted

CANADIAN
BONDS & STOCKS

Public Service Co.

of New

Hampshire

COMMON

On

Canadian Exchanges At Regular

All

Rates

Analysis

upon

request

CANADIAN DEPARTMENT

Teletype NY 1-2270

Members N. Y. Stock Exchange
American Stock Exchange

DIgby 4-2727

Banks

SECURITIES
Commission

Raw

Markets

CANADIAN

Our Customers

5, N. Y.

SUGAR

Hollywood,

★★★★★

122 Years of Service

Cotton

Amsterdam,

Net

LAMB0RN & CO., Inc.

Dept. Teletype: NY 1-708

Teletype NY 1-2152

of

N. Y. Cotton Exchange

Chicago

Bonds

Inc.

Exchange,

Orleans

Miami

Bond

Municipal

Exchange

Cotton

NEW YORK 4,

OF NEW YORK

Exchs.4*

Chamber

Exchange

Board

and

*

City

Kansas

State and

Exchange

Stock

York

New

Chicago

Common Stocks

MABON & CO.

the

1858

Stock

Commodity

Sixty Years of Brokerage Service
bond department

43

■,

Members

York

American

Bonds

& Foreign Bonds

Preferred and

page

1954.

H. Hentz & Co.

MUNICIPAL

New

BANK & TRUST

99

AND

Municipal, 4*

State and Revenue

on

Underwriters, dealers and investors in cor¬

Complete Brokerage Service
U. S. Government

Dr. Waiter J. Murphy

to the business¬
However, in recent

the lawyer.

48

by Secy. Humphrey on the Tax Revision Bill
before the Senate Finance Committee, Washington,

★★★★*

ALL

this

instances

statement

SECURITIES NOW IN

State and

their

seek

porate securities are afforded a complete picture of issues now registered with the SEC
and potential undertakings in our "Securities in Registration" Section, starting on page 50.

★

unknown

lot of money. Generally speaking
the chemist has left the latter objective
man,

partly in consequence of this fact is more likely
Continued on page 34

j

an¬

a

They now work hardships on
They also reduce the incentive

millions of individuals.

*A

a

are

to

an

j

these

interest surpasses the desire to make

outlived their usefulness.

Continued
now

in

I

%

sentiment.
The President is not

impulse

and

stances

later provisions. Many of the specific
provisions of the present internal Revenue Code have

party, for all its show making about re¬

chymists

insane

pleasure

of the tax laws of 78 years ago,

some

'

and vapor,
soot and flame, poisons and poverty,
yet among all these evils I seem to
live so sweetly that I may die if I
would change places withr the Per¬
sian King."
;
In a number of respects this de¬
scription is reasonably correct to¬
day. The chemist usually is a person
dedicated
to
the
pursuit of new
knowledge concerning physical sub¬

at the hodgepodge
which is our present tax system and
how it got to be that way.
Our tax laws were last completely

main

"The

chemists

described

class of mortals impelled by

why it should be enacted,
to
look for
just a

minute with you

"full

t

author
words:

like

would

to

tiquity, in the days when alchemy nourished,

details of the revision bill and

some

sulphur

j

ammonia process;

Present Tax System a Hodgepodge

I

recent

as

the surface; (3) the synthetic
(4) introduction of antibiotics; (5)
development of plastics; (6) creation of man-made fibers;
and (7) the release of atomic energy. Stresses contribution to our economy made by chemists and attributes
much of chemical industry's success to mass production
methods. Pleads for more widespread chemical education,

*

I

Judging from the volume of letters received on
the subject, many of our readers have been giving
considerable thought recently to the implications

Lists and describes

curred after World War 1.

*

WHAT DO YOU THINK?

Murphy traces the development of the American
though it is one of our old¬
industries, its greatest growth and integration oc¬

chemical industry and notes,

helps millions of taxpayers who have been plagued
by unjust and unfair hardships, and (3) it will help our
economy to grow, new businesses to start, old businesses
to grow, and all businesses to modernize.
Lists Admin¬
istration's recommendations bearing on the economy.

definitely and always inclined to the protectionist
cause
even
though they were not fanatics on
the subject. In more recent decades the DemoIS

Copy

Industay's
Outstanding Progress

Tax Revision Measure

In

a

The Chemical

Defense of Administration's

As

Cents

40

Price

N. Y., Thursday, April 15, 1954

DIRECT

WIRES TO

MONTREAL AND TORONTO

"

Goodbody & Co.
MEMBERS

NEW YORK STOCK

115 BROADWAY
NEW

YORK

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Dominion Securities
Grporattom
40 Exchange Place,

New York b, N. Y,

IRA HAUPT & CO.
Members New
and

111

WHItehall 4-8161

Boston

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

York Stock Exchange

other Principal

Teletype MY 1-2708

Telephone:

Enterprise

1820

2

The Commercial and Financial Chronicle.

(1662)

We

The

position and trade in
American Marietta*

Canadian Superior
Central Public
Cross

week, a different group of experts
field from all sections of the country
participate and give their reasons for favoring a particular security*

Utility

(The articles contained in this forum

Company

as an

offer

Shamrock Oil &
'

.

With

Rights

Common & Rights

Safeway Stores

'

Gas
•

y

,

trillion

cubic

.

feet

i • ;

,

estimated

reserves

of

•

1.4

at

request

New York Hanseatic

120

the earning power of the company
would be dynamic.
j

Member

Exchange

oil and gas

in¬

dustry.

Its

Shamrock

gas.

listed

refining

activities

a

about

as

George A. Kuhnreich

sideline and

Since 1917

,

in all seri¬

lytic cracking unit was built and
the
octane
race
was
entered.
Thereafter

McDonnell & Co.
M&inbers

the construction of

YORK 5

Tel. REctor 2-7815

.

',v

'

a

1

Eisele

York

City.

;•

-

American Furniture Company
Alabama-Tennessee Natural
Gas Company

outlet

butane

its

for

&

free

well

and

known

mark

sign

Shamrock

The

-

-h..

Members

is

that

the

na¬

maintenance

this

and

overhaul

and

sizable
other

maintenance
airlines

conduct

business
for

N.

Stock

Y.

stock

Lynchburg, Va.
Tele. LY 62

•.

LD 33

of The Fly¬

gov¬

rowing in

lines of business,

many

become

and

more

more

ap¬

times

the

volume

tire country could have been car¬

PANTEX MANUFACTURING

ried

in

DC-6's

30

equalled
of

cial

the

and

one-tenth

movement

in

have

been

casualties

in

many

2,000

have

been

flown

an

ous

Similarly,

year.

duction increased

to

crude

Texas

in

gage on

world

during

on

This

gas.

1953

proc¬

essed 137 billion cubic feet of

produced

from its own

After extracting
barrels

of

gas

was

sold

to

3.7

some

natural

line and related products,

idue

na¬

which 74 billion cubic

gaso¬

the

pipe

It

is

alone
will
in

insure

the

coming

The

line

by the Civil Aeronautics
have

been

estimated that this without

per

share'!

received

As Sham¬
for

gas

considerably below industry

is

aver¬

age,»it is interesting to notice that
the

Texas

legislature

has

Line

cur¬

and

obliged

to

Board,
operate

subsidy whatever and

any

the right

post,

and

cities.

name

Listings

States

and

arranged

are

Street

of

•

including

Securities
of

is con¬

Office

Post

Numbers

f

Character

Names

in

and

date established

Address,

District
General
of

under which business

and

ducted

Business

of

diss

&

Handled

Partners

Officers.

or

Names

Department Heads

Stock

Exchange and Association
berships (including N.A.S.D.)

Phone

ment.

Numbers—Private

Phone

Mem¬

Connec¬

tions —Wire Systems —Teletype Numbers—

Fresh
/•

In the

ripe food.

case

to

tomatoes

of

Correspondents
An

food, it is inter¬

note

twice

the

Vi-

rior

flavor

condition

due

in

to

which

the

they

—

Clearance

ALPHABETICAL

showing city in

Arrangements.

ROSTER

which they

of

are

all

firms

located Is

another valuable feature.

airborne

that

contain

Bound in

durable

ENTER

limp fabrikoid—$12

YOUR ORDER

HERBERT D. SEiBERT
25 Park Place

&

TODAY

CO., INC.

New York

7, N. Y.

"

l

REctor 2-9570

ripened
can

be

picked.

Savings

Tiger

Airways, thbugh certificated

without

price

shipment

Slick

parcel

of $2

Firm

„

investment

United

all

covering

geographically
and
alphabetically,
are*comprehensively detailed:

Lower warehouse invest¬

years.

Flying

phase of the company's operations

cess

air

important role

government planning through

produces earnings slightly in ex¬
rock's

that

assume a more

res¬

companies and carbon black pro¬
ducers.

of traffic, the

1,400 page book containing oyer 8,000

listings

inventory.

esting

type

up

to

large volume of govern¬

latter

(3) savings in time
to days on a two-hour

flying of government personnel taminic C of those transported by
and goods, is destined to increase
surface; flowers last up to three
as impressively as commercial air¬
time as long at the store, and
freight. The economies in manhours and stockpiling of materiel fruits and vegetables have supe¬

firm

a

a

continue

should

90%

Canadian

Decreased

large scale in contract
operations around the

a

as

ventory.

domestic

all

business.

ment

1

million

of

"Security Dealers of North America"
A

Increased turnover of in¬

In addition, they en¬

and

handle

transition

a

foundation of natural

wells.

48%

airfreight.

infer

be erroneous to

refining structure

was

than

OF

STOCK and BOND HOUSES

Airfreight benefits the merchant
through:-

of leased planes, the Flying
Tigers have recorded an astonish¬
ingly rapid growth and today fly

production and refining business.
On the contrary, it is simply su¬
perimposing a crude production

feet

capable,

much

as

schedule.

and charter

Shamrock is

tural gas of

running

the line is
and aggressive.

of

starting in, business at the

more

costs

and

ful

drilling and explor¬

Shamrock,

lower

end of World War II with a hand¬

from the natural gas to the crude

and

in¬

$1,853,155.

Since

ation activities.

that

>

Net income in fiscal 1953

young,

Teletype NY 1-4487

.

DIRECTORY

when it

,

Management

would appear to
add speculative appeal.
Drilling
during 1953 added 57 oil and gas
wells and management expects to

It would

hold

surance

was

acreage

accelerate its

You' can't

1949,. should be substantially

The

Basin.

Horace I. Poole

airfreight 1 back
can offer the shipper (1)
packing costs 50% lower, (2) in¬

creased.

Panhandle,

in the Williston

been

sharply and steadily upward since

daily average of 2,800 .bar¬
rels.
Some 608,000 acres are held
under lease of which 155,000 are
considered as proven.
While the
the

com-

which

have

a

in

the

of

30 9-3242

eight

earnings

pany,

pro¬

than 30%

more

extending over the past
years.
Airfreight Js now
finding, the answers.

merger

Inc.

30 Broad St., New York 4

by

lems

latter




John R. Roland & Co.,

airfreight since
different items

Over

the

and

Tele. NY 1-3222

REEVES SOUNDCRAFT

finan¬

the

120,000 acres are held in
promising areas of New Mexico

Phone: HA 2-9766

SANDY HILL IRON & BRASS

of

freight

the

.

ton¬

but

1946.

car¬

INC.

(Prospectus Available)

There

many

some

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

GENERAL CREDIT,

airfreight.
Last years' airfreight for the en¬

the nation.

rier. With the

This reveals
increase of 7% over the previ¬

00rtlandtT-5686

Trading Markets

of

rels of crude daily.

States.

Bankets

Investment

&

field.

operat¬
ing economies
Effected by

cated

Members New York Stock Exchange

Brokers

airfreight.
Methods for transporting the vari¬
ous
cargo, and tariff rates prof¬
itable enough
to fly this wide
variety of items, has posed prob¬

Mountain

1897

Office Tokyo—70 Branches

111 Broadway,N.Y.6

was

1%

the

be

Co., Ltd.

Established
Home

airfreight

bulk of Shamrock's acreage is lo¬

Write for Circular

Yamaichi
Securities

recently said that new
equipment about to be produced
would cause a jump of 40 to 50

Line

will

publications

Japanese securities

com¬

world's largest

of Texas,

write

or

current

our

on

companies will exceed $25
million.: With profit margins nar¬

nage

Flying

T i g e r

Call

;

.

for

bined

It

completed
this spring

.

HUGO STINNES

u

in

for

the

and

dominant company in the

i s

efficient and modern in the United

Scott, Horner &
Mason, Inc.

Opportunities

the

Slick Airways

The

offices

assuring a favorable future for
Flying Tigers — already the

Stock

common

branch

our

Investment

a

Total assets of the

ernment.

to

han¬

New

States, processed some 10,400 bar¬

Dan River Mills

Mobile, Ala.
Direct wires

in both Burbank, California
and

NY 1-1557

also

gars

York

St., New York 6, N. Y.

New Orleans, La. - Birmingham, Ala.

which should increase
their gross volume considerably.
Moreover, a tariff increase was
recently granted by the Civil
Board

Rector

HAnover 2-0700

King, Lib.iire, Stout & Co., parent and the trend to
airfreight
New York" City,
1
should
accelerate
sharply, thus

ing Tiger Line Inc., on the Amer¬
ican Stock Exchange is an impres¬
sive growth situation. When the
merger with

During 1953, the McKee refin¬
ery, now rated as one of the most

Company

19

mail,

Aeronautics

Exchange
Exchange

American Stock

the

all-cargo
carriers will at last be granted
permission to fly some portion of
now

will

..

Flying Tiger Line Inc.

The

is a
land¬

respected

the highways

on

/

,

York Stock

Members New

look

the economies of air transit times

Exchange,
Exchange and
Chicago Board of Trade.

gasoline, a blending agent
used in refining, as well as an
opportunity to utilize available
and ample crude oil supplies. In
addition, a good market for re¬
fined
products existed within a
the

■

American

tural

Today,

*.

Members

Oklahoma, Kansas and the Rocky

Commonwealth Natural Gas

Steiner, Rouse & Co!

.

few hundred miles of the refinery.

Trading Markets

currently quoted at
Capitalization of the

HORACE I. POOLE

al-

an

change
in
policy
was
prompted by a desire to provide
an

Exchange

is

consists of $15,000,000
sinking
fund
debentures
(1955-66) and 1,484,052 shares of
common
($1 par).

wit¬

1953

and

This

Stock Exchange

common

company

kylation plant for the production
of aviation gasoline.

120 BROADWAY, NEW

New

and

47.

coking

continuous

a

added

was

nessed

Gas

until 1949 when a cata¬

ousness,

unit

&

31/2%

did not enter this field,

Rights & Scrip

Oil

payments

the New York Stock Ex¬

on

change,

were

the company

Specialists in

Stock

Co.,

p^e 2)

operations, in time, should become
will improve the financial picture.
a substantial earnings factor. New
The Flying Tigers, when com¬
refining and marketing units, are
anticipated to influence earnings, pletely merged with Slick, will
favorably.
It is estimated that have a fleet of over 50, including
today's most modern airfreight
1954 results will be at least 20%
better than 1953 earnings of $3.83. < planes, DC-6As. They have large

natural

Teletype NY 1-583

Ydrk

dividend

&

Bought—Sold—Quoted

& King, Libaire,

Eisele

Stout

earnings outlook is excellent. Oil

term

-

considered

New

Poole,

the

part icipate

primarily a
producer and
processor of

1920

Broadway, New York 5

American

Louisiana Securities

Company—

of
$2.40 are well covered and afford
a yield of 5.2%.
The longer term

Shamrock is

Corporation

BArclay 7-5660

Gas

&

George A. Kuhnreich, Cowen &
Co., New York City, (page 2)

-

impact of such legislation on

Present

pany should

outlook of the

Stock

Oil

Sham rock

sell the securities discussed.)

ate

48

and

gas

million barrels of natural gas liq¬
uids Shamrock Oil & Gas Com¬

fully in

Conv. Pfd. & Common

American

nor

favorable

Stromberg-Carlson

Associate

be,

to

long

4.30% Conv. Pfd. & Rights

Established

to

intended

not

are

rently three natural gas minimum
price bills in committee.
These
proposed statutes call for legisla¬
tive minimum prices ranging from :■
7c to 13c per MCF.
The immedi¬

Cowen & Co., New York City

Rights

Pennsylvania Power & Light

.

Alabama &

Their Selections

Flying Tiger Line, Inc.—Horace I.

Pennsylvania Gas

on

be regarded,

to

GEORGE A. KUHNREICH

National Union Fire

Analyses

they

•re

Investors Diversified Services iAt

Common &

*

Week's,

Participants and

in the investment and advisory

Foremost Dairies

Common &

This
Forum

A continuous forum in which, each

Oil

Indiana Gas*

Central

Security I Like Best

Thursday, April 15, 1954

are

of

a

effected' by

airfreight

clearly portrayed in the

case

consignment of nylon stock¬

ings sent from Chicago to Vene¬
zuela at

a

by surface

total expense of $3,000
vs.

$2,400 by airfreight

to carry mail,

The time savings was even more

That

N. Qa B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance of

important to all for surface trans¬

express.

they have been able to do this,

portation

and in the

35 Industrial Stockt
POLDER ON

REQUEST

freight three days/

show

a

case

of the

Tigers, to

mounting profit for five

involved

30

Flying Tiger's future

days, air¬
may be

in

consecutive years, is proof of their

the air but it will be Old Father

operating

Time who will call the turns.

capabilities.

The

out-

National Quotation Bureau
Incotporated

46 Front Street

New York 4,N.Y.

Volume 179

Number 5316

.

.

The Commercial and Financial Chronicle

.

(1663)

Woild Needs Restoration

INDEX
B. S.

Articles and News

Of Gold Standard
PHILIP

By

page

President, Coty Inc., and Economist

World Needs Restoration of Gold

Cover

Standard—Philip Cortney—

of Federal Government in
Major Economic Depressions
—Grover W. Ensley

Cortney pleads for gold price increase as necessary to
facilitate central banks' rebuilding of adequate gold reserves;
to increase liquidity of free world; and to stabilize dollar's
present purchasing power. Lists following steps as essential
for return to gold standard: (1) stoppage of inflation, in¬
cluding monetizing of government debt; (2) creation of free
U. S. market for gold with freedom to export and import;
(3) changed Reserve System operating method to create
closer relationship between gold reserve and money supply;
and (4) change in gold price to about $70 an ounce.

__

14

Coined Paper: A Dangerous Form of Money!—John J. Rowe

mittee

I

should

present

be

surprised

Treasury

if

we

the

after the first
faced

are

(a)

'Management
of

Like

the

and

A Year of

99

to

Fed¬

give

eral Reserve

currencies

Banks

have

agree

the

on

i gold
play

Yet

they

called

the

peoples
("managed cur¬

turned

out

for

name

Gold

>

alone

world

flation

is

and

are

pol¬
Gold is essentially

icy."

international

we

ply
and

deal with it
a

if it

as

world

a

matter

and

concern

national issue.

the

without

yet
sim¬

were

to the restoration of
n o

a

needs

clearly and

of

currencies.

The free world has

disorderly,

a

unstable and precarious monetary

situation, supported and sustained
by American inflation of money
and

credit,

and by extravagant
dollars for aid, off-

of

restore

abroad;

the

gold

nationally.
posed
of

to

Reactor

■

'

:

gold

in

an

international

standard will put an

inter¬

standard

order

to

funds

un¬

gold

end to arbi¬

trary domestic inflation and will
possible the expansion of
unhampered international trade

create

Ill

The

the

1929

deep

so

was

and

main

results

of

so-

"gold policy" are the
lowing: (a) it prevents the

fol-

rency

of

an

vitally

economic

international
necessary

of

res¬
cur¬

as

an

foreign
policy, and (b) our gold policy
is basically inflationary because
it compels our money managers
weapon

our

to continue

monetizing of debt and
tampering with so-called reserves.

'!'

n
Post-war deflation is

;

a phenomenon
ing war. But

as

as

classical

is inflation dur¬

too

many,

many,

►

''

'Statement

Federal

by Mr. Cortney before the

Reserve

itself

Federal

Sub-Committee

of

the

due

was

Reserve

the

to

After World

price

of gold

in

both

historic

the

fact

is

that

fi¬

be

adjusted

to

the

Continued

Stocks

33

56
*

Albany

•

Manchester, N. H.




•

•

Nashville

Chicago

Governments.

on

8

Public Utility Securities

Securities

37

-

in Registration

Now

Prospective

•

TELETYPE N. Y. 1-5

Schenectady

Glens Falls
•

39

:

Railroad Securities

.

.

.

and You—By

53

Wallace Streete

16
2

The State of Trade and Industry

36

....

.

Weekly

1

and

FINANCIAL CHRONICLE
•

Reg. U. S„ Patent Office

Park

Worcester

Place,

REctor

to

7,

N.

Drapers'

land,

HERBERT D. SEIBERT, Editor & Publisher

DAMjA SEIBERT, President

Thursday, April 15, 1954
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quota, ion
records,
state

corporation

and city

Other

news,

Offices:

Chicago 3, HI.

news,

Gardens, London,
c/o Edwards & Smith.

bank clearings,

etc.).

135 South La Salle St.,
(Telephone STate 2-0613);

Jockey Club

56

Tracerlab Inc.

E.

C., Eng¬

25,

at

the

office at New
York, N. Y„ under the Act of March 8,1879.

Subscription

Rates

Countries, C35.00 per
Other

Bank

and

the

rate

year.

Record

—

W" V. FRANKEL & CO.
INCORPORATED

39 BROADWAY, NEW

YORK 6

WHitehal} 3-3960
Teletype NY 1-4040 & 4041

Monthly,

(Foreign postage extra.)

account

df the fluctuations In

of exchange,

remittances 1?y for¬
eign subscriptions and advertisements must
be made

♦

Publication

Quotation

$33.00 per year.
Note—Or

Request

post

Subscriptions in United States, U. S.
Possessions, Territories and* Members of
Pan-American Union, $48.00 per year;
in
Dominion
of
Canada,
$51.00
per
year.
Other

on

second-class matter Febru¬

as

1943,

of America

*Prospectus

Copyright 1954 by William B. Dana
Company

Y.

9576

Monmouth Park

Vitro Corp.

Reentered

COMPANY, Publishers

New York

2-9570

Magnolia Park, Inc.

5

,

Column not available this week.

Published Twice

Inc.*

6s—64

39

The Security I Like Best

*

Cahokia Downs,

50

Offerings

Security

Security Salesman's Corner
The Market

,

WILLIAM

•

42

Common

ST., NEW YORK 4, N. Y.

Boston

47

Our Reporter's Report

25

•

Exchange PL, N. Y. 8

Cahokia Downs, Inc.*

PREFERRED STOCKS

Members New York Stock Exchange

40

Teletype NY 1-1825 & NY 1-1820

Bargeron—" 14

Washington and You

Spencer Trask & Co.

HA 2*0270

34

Reporter

The COMMERCIAL

TELEPHONE HAnover 24300

23

Our

WILLIAM B. DANA

BROAD

8
...

8

ary

25

49

;

Singer,- Bean
MACKIE, Inc.

&

36

.

have specialized in

Insurance

News About Banks and Bankers

•

For many years we

and

NSTA Notes

of

page

Request

Cover

purchasing
on

on

♦

(Editorial).

From Washington Ahead of the News—Carlisle

sterling and of the dollar had to

Banking and Currency Committee of the
Senate, Washington, March 31, 1954.

49

Indications of Current Business Activity
Mutual Funds

the

power

purchasing

American Shares

Einzig—"European Payments Union in Danger"

succeeded

maintain

\Royal Dutch

41

Dealer-Broker Investment Recommendations

shattered by the great depression,

nally

(Boxed).

Coming Events in Investment Field

pre¬

terms

1914 price of gold and the
postwar inflated price-level was

the

6—69

41

Too!

Canadian Securities

prewar

and

33

Magnolia Park, Inc.'"

Bank

holding up the price level for
a
surprising length of time by
an abnormal
expansion of credit,
but in so doing it aided in pro¬
ducing the boom.
The illusion
could

Lithium Corp.

Business Man's Bookshelf

in

we

27

I

sterling, and the
postwar inflated price level. The

that

/Hycon

.

Regular Features

of the dollar and

Federal Reserve Board

Tidelands*

*

35

As We See It

tried to

we

27

35

"man¬

simultaneously the

1914

war

War I

American
—

*Prospectus

which

Board,

24

on

Economists Contend That Business Can Effectively Time
Its Investments
1

speculative bub¬

world-wide repercussions.

maintain

our

called

toration

ble

NY 1-3370

20

NYSE Revenues Up, But Net Income Dips, Reports
Keith Funston

.

people.

But the

York 5
Teletype

Over There,

pro¬

a mystery to many
Many
individuals
are
putting the main blame on the
speculative bubble on the stock

Federal Tax Policy Holds Budget Can Be
and Taxes Cut

Bankers Trust Co. Discusses Treasury Financing Prospects
and Interest Rate Trend

longed remains

of quotas, exchange con¬

trols and other expedients.
The

Telephone

on

Ship Mortgages

de¬

had

/

15 Broad Street, New

37

Trend of Interest Rates Downward, says Roy L. Reierson
Rules of Membership in "Coronary Club"

aged currency" experiment of the

means

24

Open and Inquiring Mind in

Rudolf S. Hecht Devises New System of
Financing
'

stant intervention of governments

.

♦

•

why

reason

Manager

Trading Dept.

23

i, Kenneth R, Miller Cities NAM Viewpoint
Guaranteed Wage
I------

lief to producers of gold.

without discrimination against
American goods and without con¬

by

☆

JOHN F. REILLY,

18

Unlisted

Education

Balanced

con¬

market.

*•

—

No Prolonged Recession in Sight, says Arthur H.
Motley—

for

make
-

Members New York Stock Exchange

Dlgby 44680
Committee

closing the
dollar gap and still less ata re¬

pression

.>

Only the restoration of
restricted

an

Sold

BURNHAM AND COMPANY

12

Way Out, Chemists Reveal

on

—

9

Development

Chemical

■
■I

Bought

7

13

Stale Bread

em¬

Specifically I am op¬
change in the price

a

vertibility

shore procurement, and the main¬
tenance
of
American
armies

/

4

the

lost confidence in fiat

spending

Cover

Cobleigh

Chemists Wage Battle Against Animal Parasites
+.
Chemical Industry Joins in Study Program for Industrial

international

an

U.

Industry

Dr. Kirk Advocates

I wish to state

t

West North Central States Area Attractive for Chemical

urgent- phatically that to my mind .the
price of gold is an issue only if we
currency, which can be only gold are determined to stop the mone¬
because most of the people have
tizing of government debt and
restoration

Comment—Ira

—Henry B. duPont

trade.

Our country

"

Stock and Bonds

.

unhampered,
multilateral

n-discriminatory,

■

Free Trade Must Not Hamper Our Chemical
Industry

deflationary
trend
of
prices, and (b) can we regain the
international
liquidity necessary

Philip Cortney

standard
of

checked

Stock and Bonds
30

Tooling—Robert S. Aries————
Agriculture as a Resource to the Chemical Industry
—W. C. Dutton

strong

badly in need
of. a /'gold
».

Chemical

my

be

MAGNOLIA PARK, INC.

26

The Chemical Industry's
Outstanding Progress
—Walter J. Murphy

and unqualified

policy,
we

Hood—

CAHOKIA DOWNS

universal

the rest of the

while

F.

ABOUT THE CHEMICAL INDUSTRY

confidence, and it
thesis that only by having
gold correctly priced can (a) in¬

gold

25

Decision—Clifford

i /. Plastic

,

inspires

Rodgers

of

MONMOUTH PARK JOCKEY

'

be i

to

chronic

stoppage of inflation.

our

Period

Evil

or

Economic Nationalism: A World Menace—Warren Lee Pierson 31

depreciation); and (b)
to prevent a strong deflationary
trend of prices as a result of the

agree on what

is

world

the

22

No Revolution in Electrical Power From Atomic Fuels
—Donald H. Loughbridge

currency

our

monetary sys¬
tem.

have

—Raymond
Our

WALL STREET, NEW YORK

Telephone: WHitehall 4-6551

24

Consumer Credit: Infinite Power for Good

problems:

to

which

just- another

should
in

again

in

confidence

rencies"

role

with two

time!

Opportunity for Industrial Advertisers

High Schools—Roger W. Babson

World War

need.

you

every

18

inflation.

the

"bite"

Obsolete Securities Dept.

10

Factors in Determination of the Business Level
—Claude L. Benner—_

we can avoid postwar
by further paper money

deflation

all

is

6

We'll

Life Companies' Interest in Gas
Industry Securities
—Stuart E. Silloway
—^

believe that

Having read the statement made
by Dr. Burgess before the Com¬

obsolete

5

Municipal Finance Problems'in 1954—Joseph F. Clark

positions

responsible

An

4

What Investment Prospects in
Booming Turkey?
—A. Wilfred May

—Carlton H. Winslow.

in

BAIT

3

Role

Mr.

people

licHTfnsTfin
AND COMPANY

Defense of the Administration's Tax Revision Measure
—Hon. George M. Humphrey

CORTNEY*

3

in New York funds.

Direct

Wire

to

PLEDGER & COMPANY
LOS ANGELES

INCc,

4

(1664)

The Commercial and Financial
Chronicle,.
f

,

f

Thursday, April 15, 1354

.

If.

i> t*

f

and Plastic Divisions.

Chemical Comment
By IRA V. COBLEIGH

bide, is

,

der

have

with

pace

not

such

quite

profit

kept

palladins

General:

as

had, in due

debits
let's

is

After

e

not,
e

v

howthe

r,

slightest

are,

recent

have

billion

1953-54.

for

earmarked

with investors.

is

This

basic

products and

dainty decline,
lowered

ones

boom,

Ira U. Cobleigh

whatever

o r

to call a certain per¬
ceptible slippage in our economic
forward motion, has not hit the
chemicals too badly, 1953 marked
the

largest chemical .output in
the history of laboratory ledgers;
and a total 1953 outlay in new
....

equipment and plant of $1.8 bil-r
lion shows no wavering confidence
in the future of this dynamic in¬
dustry. True, projection for new
plant account this year is down to
still

respectable $1.6 billion, a
quite amazing outlay in view of
a

certain

in

As

we

in

factors

adverse

trade that

like

port

Texas

briskly

want

you

impressive.

the

shall tick off briefly.
other

most

fields,

pro¬

and

Free-

smaller

Gulf

highly

of

trend

two

or

products.
sections

basic

As

of

other

in

the

industrial

stock

market, so
chemicals, the biggest and
most established companies
have,
in recent years, often
proved to
be not only the best
investments,
with

S.

E.

If it

call

selected

currently
permitted

were

but

own

sagacious
not

and

demented

you

United

Carbide.

front

a

in reseach.

1892

a

very mature company

started

out

in

back

way

Mathieson

as

Alkali

Works,

We

have

even

seriously,
invasion

Then,

of

consider, quite
defenses against
native

our

production

too,

basic

to

tariff

chemicals

market.

of

often

many

creates

out

an

400

over

until

drug

today

and

it

chemical

plenty of

room and a quite rosy
future for most; and some one of
the junior members of the club

offices and plants which

Forty
sales

Inc., a lowly priced
(stock,, sells
at
four

counter)
acid

newcomer

over-the-

is

parlaying sulphuric
phosphate rock into an

and

of

percent
from

come

Mathieson

so-called

indus¬

chemicals, featuring soda ash,

caustic

soda, chlorine, ammonia,
sulphuric acid and methanol. The
leads

company

in

pelletized fer¬
nitrogen potash

tilizers, packing
and phosphate in

highly effec¬
pol¬ interesting future, and has a proc¬
tive and concentrated form/for
atmosphere; ess for deriving uranium, oxide
more productive
and our civic temper no longer from the aforesaid
agriculture. The
phosphate rock.
brooks such air begriming as the Blockson Chemical is another out¬ plant in Pasadena, Texas, has been
on
several occasions
soot-sending soft coal furnaces of fit with a phosphorescent back¬
enlarged to
meet
the
an
earlier Pittsburgh.
growing demand for
ground, turning out uranium in
this hopped-up fertilizer.
Then, there have been some usable form for the Atomic Com¬
costly local problems such

lution

of

items

stream

as

researched, produced, and

distributed

at
great initial
that either didn't live

pense,
to

their

billing,

or

eroded,

were

As

ex¬

up

rubbed out, by superior prod¬
ucts
or
lower
cost
techniques.

we

matter of

a

draw

we're

on

or

begin,

Chlorophyll, which

to

ate

an

did

never

acceptable personal

cre¬

aroma

for goats, who used it most,
is not the profit winner it was two

even

years

Sulfas

ago.

have

bowed

By

mission.

about,

the

the

can

trusts,

and

thetic alcohol has

placed
certain

have

the

importantly dis¬

fermented

vaunted

created,

syn¬

sort;

wonder

well

as

as

and

drugs
cured,

maladies.

of

chemical

earnings,

and

re¬

the traditional capacity of
chemical
companies
to
expand
versed

with

bide

money

from

retained

earn¬

and

the

same

of

most

of

chemical

prefer¬
including Harvard
Fund, is Union Car¬

For

may

the

Corp. Accord¬
jottings from its 1953
prove

first

of

time

and

ethical

history,
sales passed the billion
mark, ad¬
vancing 7% over 1952. Net in¬
rousing $102 million, de¬
livers per share
earnings of $3.55
and amply covered the
$2.50 divi¬
dend vouchsafed to
109,551 share¬

ity

Additions to plant in 1953
at an all-time
high, $160

were

million,

ESTABLISHED 18941

CORPORATE BONDS
LOCAL STOCKS

As

WALNUT 0316




"

LONG DISTANCE 421

der the

field

and

approach

to

as

a

promote, conditions,

which will afford useful
employ¬
ment opportunities for
those

Grover W.

Ensley

ing and, it is hoped,

increase

an

take

can

terests of
the

boom¬

a

a more stable

timely and
It

is

in

private

place

in

tools

used

are

a

inevitable,

developments

of

however,
recent

that

months

should give rise once again to
discussions of the role of the Fed¬

Depression
our

fears,

that

of

the

economic

follow

World

fresh

so

1930's

in

when

and

of

though unfounded,

even

serious

misgivings and

setbacks

War

II,

are

minds

our

concern

that

are

evidences

this

background, the
arranging this meet¬
tonight has wisely phrased
subject assigned to me in

ing

terms of the role which the Fed¬
eral Government can

be

million
in

in

1953.

$3.30

out

Current

1944

1953
of

to

quotation

5%

tractive for

a

$243 ^

$2
of

net

was

paid.

around

yield—quite

the

Dow,

Chemical

Dedicated

middle

sized

a

look

enterprise
the

this-year,

some

overtake

decade.

If

unattractive,
be

a

cover

research

bear;

least

in

this

next

this

prospect seems
then go ahead and

but buy aspirins
your short position!

us.

everyone.

guarantee that
can

Such guarantees
we

governments

an

never
are

prefer to leave

are

Only

willing to

promise everything and to sacri¬

companies..into

fice

profitability, and the
industry should double its
at

it

depression

devices which

such

individual liberty for

state
i

in

role

turn to

we

ernment

which

their

a

slave

Dinner

address by

people

Meeting

Dr. Ensley at
of, the Michigan

a

are

joint

Asso¬
ciation of Certified Public
Accountants,
the
Robert Morris Associates, and the
to
'American Society of Women Accountants,
-Detroit, Mich., April 6, 1954.

govern¬

the

free

com¬

Federal

Gov¬

an

conducive

eco¬

to

growth

dy¬

and

an

consideration of the

a

can

nomic

stability

in

Federal Gov¬

in

use

achieve

its

aiding

goals

and

the

of

eco¬

growth

and

preventing depression.
In

this

connection I would not
want to push the medical
analogy*
too

far,

but I believe
discuss the Federal
role

the

under

tools

the

available

may

Govern¬

two

headings;
diagnosis, and

of

tools

for

we

or

measures

treatment—preven¬

tative and curative.

Early Diagnosis

»

Now,

in the field of
medicine,
hear a lot about the
virtue

- we

* of

early diagnosis in the treatment

of human frailties and
In the economic

complaints.
sphere we have

assurance

Federal

this

on

score.

The

Government is active

fronts

that

so

we

on

have

may

the

benefit of an early under¬
standing of what is going on in.
the
economy.
The Employment
establishes

within the Office,
President a council and

the

staff

of

professional economists,
qualified to analyze economic de¬

velopments and to formulate and
recommend national
economic

policy.
at the

This

a

we

have

group of specialists

with the express

ing

that

means

highest level in the Execu¬

tive Branch

the

duty of diagnos¬

economic

health

of

the

nation.
In
the

addition

is to

to

this*

Council,

Congress

mittee

has a Joint Com¬
whose express function it

make

the

»AYi

co¬

calculated

promote

of

nation

Act

the

local

a manner

and

measures which the

of

that

carried
and

ever-increasing level of living.
Keeping in mind this "positive"
rather than
"negative" approach,

this

at

and

economic

free

should

pur¬

industry, agriculture,

climate

in

to totalitarian governments.

of

production

can

economic

laboratory equities.

rocket

employment for

Neither

He.y-

With EPT
removed, the chemi¬
cals
should
carry: more
net
to
stockholders
will

of

recognize

and

be

charged with creating

the

are

we

in

Federal Government cannot guar¬

den, Hooker, Spencer and Davison
at
current
prices might reveal
solid

we

ideals

system,

outset

antee

among

at

as

country to the

Monsanto
and

regional

inherent

are

workings of a dynamic
competitive economy..

diversified chemical.

Cyanamid,
Allied

special

which

the

40

at¬

Other companies
deserving con¬
sideration would surely include
the big and the
great like
and

is

two

problems

em¬

and

assistance

nomic

some

or

maximum

is positive—and I
want
emphasize this point. It is not
a matter of
passive resistance to*
contractions and depressions.
It

and-downs

was

It

to

talking primarily about serious
depression, not the type of roll¬
ing readjustments or minor ups-

$18

million

share

per

which

a

from

work.

petitive enterprise.

ment's

of

zoomed

foster

well

committee
the

State

second,

Against

the

ments, and in
to

only

play in "aiding to prevent a major economic
depression." Note that we shall

have

labor,

traction, however moderate, begin.
first,

and

sales

with

con¬

of

to appear.

example of
profitable expansion,
an enterprise
long-term merit to investors.

Net

out

operation of

eral

Government
in
aiding to
prevent a major economic depres¬
sion.
The memory of the Great

promote

ployment, production
chasing power are to

namic

courageous manner.

to

ernment

in¬

in

to

The

de¬

the

stability and growth if

available

natural

drug

from

move

seeking

expressly stated that these ef¬

forts

economy.
We are confident that
any seri¬
ous recession can be
avoided, and

that

able,

willing and
is

lower level of defense
spend¬

mand

the

ernment to coordinate and
use all
its own
plans and resources
to foster and

readjustment in the

we

to

of

;

being at

pected

that

as

continuing policy and
responsibility of the Federal Gov¬

halted for the

Some

is

memories

Employment Act of 1946.
Congress has declared that

The

it

our

Federal Government has
as its
responsibility un¬

our

accepted

Mathieson presents

logical

whole

1, GEORGIA

over¬

therefore, iniportant

refresh

what

been

time

is,

we

In

decline

has

still

qual¬
Squibb

copybook

a

new areas

ATLANTA

It

magni¬

might

Squibb
a

mycin.

some

Robinson-Humphrey Cpmpany,Inc.

RHODES-HAVERTY BLDG.

The

profits—(1) household drugs like
tooth paste, aspirin, and
shaving
cream;
(2) Vitamins; (3) medi¬
cal items such as
analgesics and
sedatives; and (4) antibiotics in¬
cluding penicillin, and strepto¬

can

4

Squibb

Ameri¬

STATE AND MUNICIPAL BONDS

The

the

fourfold

a

indicates

about half going to the Chemical

drugs.

in

one

a

holders.

R.

has for decades been

name

interest. ~
in

E.

& Sons in 1952, Mathieson moved

way

the

with

merger

importantly into pharmaceuticals

has

Carbon

some

report

come,

And, of course, taxes, with the
exception of rapid depreciation
benefits, have taken big bites out

to

of many,

ingly,

attacks;

to where

note, however, that

top

than

it

as

It's

portfolios

Endowment

fevers

spot

most.

to better antibiotics, the
price of
penicillin went down even faster

the

every time
the chemicals

companies to talk
which chemical element

or

stress

ence

fact,
on

which

today. We
in

bead

a

Government

sec¬

continues

the

a

or

is

dy¬

Responsibility Accepted by the

tudes, how¬

to

dot this

planet.

turn
out
to
be
another
trial
Amerada. Texas
City Chemicals,
may

farm

ing wartime and defense economy

industry growing at such products with the combined ef¬
forts of 18,000
employees, in 137
rate, however, there's

fabulous

it

a job but are
assigned to work by coercion. :

production is down 10% from last
summer,
and

tempo of economic activity is
only natural and should be ex¬

boasts assets of
$339,261,000, turns

since

not only assured
of

a

least.

quite

astronomically,

In

States has been in

with original capital of
$1,710,000.
From here it moved ahead

but the

a

United

Perhaps we'll have time, also,
nomic activity
a few words about
Mathieson;
are not cause
Chemical-Corporation, which has;
for pessimism.
grown postwar perhaps as rapidly1
There are in¬
as any
company, quite largely via
dications that
the merger route.
Actually Ma-:
thieson is

us.

positive,

programs of action in ad¬
three major fields of action:
(1) monetary;

as

for

having

not

overtake

Stresses need for
early diagnosis of

ever,
the
levels of eco¬

rise.

big get bigger.

growth.

is

and does

never

economic climate conducive to

an

recession.
Unemployment has
tripled in four months, industrial

all

It's

Federal

can

(2) public works, and (3) fiscal.
The

terms of

runner

to everyone,

depression
Government

ills, and preparation of

Lists

vance.

depressed.

if

duction

best speculations for the
The good get better and the

economic

tor

savants

some

has caught
up
and, in
instances, outpaced sales;
and there has
been some
price
softening. We no longer have the
export markets to ourselves; on
the contrary, European producers,
powerful in world markets before
World War II, have returned to
aggressive production and sale.

of

namic economic

the

chemical

one

security

big, it's broad, and

or

role

employment

Holds Federal Govern¬

economic

an

can

thirty mil¬
long-term debt

of

Y.

to

you

you

in

broadening
investment

materials

N.

would

operations; and
preferences seem to follow the big
diversified companies as against
somep of "the smaller
units, often
staking their earning * power on
one

dollars

stock,

Sulphur.

discernible

the whole field is the

lion

to

like

ones

Gulf

and

you

precede and provide the leverage
for 28,952,794 common shares
quoted at 78.

expanding capacity
along with some of the

industry

every

that

charged with creating

Three hundred and

listed

moving ahead

are

and

Mexican
A

Gulf

and

this year,
newer

and the big

processes

Holds

consumer, as well as for
chemical
companies,
and

virtually

Sulphur for in¬
in hundreds of

Texas

ment cannot guarantee
assume

pre¬

major economic depression.

a

think of.

elements

stance is required

"rolling
recession,"

the

other

new

certain

venting

for

gas

Report,

Expressing confidence any serions recession can be
avoided,
Dr. Ensley describes role of tbe
Federal Government in

hydrogen, nitrogen and
acetylene; and everything for
welding. United Carbide produces

plants in
long-term demand

The

for

curve

for

store
dishing out
alloys resistant to heat,

and

bottled

on the
Economic
States Congress

United

oxygen,

very excellent fu¬
prospects,
or
they

never

Director, Joint Committee

chemical

a

seaside cottage, and a syn¬
thetic fiber, Dynel;
batteries, anti¬
freezes, carbons and graphites;

some

profit

Staff

talking about diversity

your

industry,
brighter side.

the

Major Economic Depressions
By GROVER W. ENSLEY*

Krene.

"Pyrofax"

oon,

chemical

to

In

Bakelite,

corrosion; acids, al¬
cohols, glycols, nitrogen and sili-

the managements of
corporations must have

mind

$3%

likely to be,
unpopular

the

abrasion

all,

would

are

or

turn

ture

chemicals

the

the

Role of Federal Government

leader

department

course,

recounted

in

chemical
in

rea¬

believe

to

son

Having

were

of

names

and

metals and

to emit
debt securities, after years of ex¬
clusively equity capitalization.

Electric, Boe¬
ing and Va¬

brand

of products. Well UC is

Even such financially loaded
companies ■ as
Allied
Chemical

nadium. There

We

*

ings.

have

the

Vinylite

creativeness

chemicals

acknowledged

production,
turning out the four principal
species: phenolic and vinyl resins,
polyethylene and polystyrene un¬

A running account of current chemical corporate
Amid the fancy performance of
shares
on
the
Exchange,
the

Union Car¬

in chemical plastic

Enterprise Economist

,

the

a

continuing study of

economic
advise
the

situation

Congress

appropriate

and

as

economic

Representative

.

Wolcott

Continued

on

to

to

the

policy.
of

the

page

40

Volume 179

Number 5316

...

The Commercial and Financial Chronicle

Steel

The

.*,

.

'

Production

Prospects
In Booming Turkey?

Carloadings
Trade

Commodity Price Index
Food

Price

Industry

'

on

Mr.

survey,

difficult

in is tied to

more

frequent.

*

r

>

!

:

*

•

and

pros

chiefly to

Concludes

m e n

The

t.

great
tial

ployed during March and a decline of 20,000 in the average num¬
ber of new claims for unemployment compensation that month.

poten¬
investor

interest

from

Mitchell reported, is that
slowly in non-durable goods
production, though the drop is continuing at a fast {iace in dur¬
able good manufacturing and allied fields.
Signs of an upturn in employment in the farm machinery ;
field were indicated by the current statement of international
Harvester Co.,

law

is

abroad

reason

for this improvement, Mr.

employment is

declining

now

stim

more

1

u

her

by

investm

which disclosed it had recalled 6,700 laid-off work¬

key's

wor
e n

A.

w

p

(an

interests

*

had been

the

significant improvement in business, and none in imme¬
* Some
signs that the steel market climate is im¬

well

as

o1 i tical

imported; and permitted
of principal only

wait of three to five years.

a

What Protection?

What is the import of such pro¬
tective
other

legislation—in

portantly bound
the

hard-boiled

tween

and

ago).

appointment to some, failing to add steam to the market. Al¬
though this is steel's No. 1 customer, its stimulating influence was

and signs indicate little chance
be able to increase their buying power sub¬

probably overrated early this
that auto firms will

year

stantially.
The

appliance business is blowing hot and cold, with little
Air conditioning, radio, and TV will probably
But some usually good customers are still
virtually out of the market for steel.
Farm equipment business is surprisingly good and tinplate
demand improved, partly on the basis of strike-hedge buying.
Railroad demand is weak and carbuilders' requirements are still
overall direction.

beat early estimates.

authority observes.
new

11
car

Preston

most

her

from

stems

historical

So

on

January last the Parlia¬

legislation affording liquidity and
further general protection to for¬

Administered by the

eign capital.

to

be¬

of

and

power

trans¬

the continu¬

manufactured goods;

country,

ing deficiencies in financial and
marketing facilities; the compara¬

but
of

Council

tively low returns on private in¬
vestments; bureaucratic mistrust
of
business; shortage of
man¬

by

the United

Qualms

Discussing these points with me
in

Ankara, Prime Minister Menpointed out that even a
regulation can be
amended
(in this country by a
two-thirds vote); and that since
his country's law is a contractual
deres

Constitutional

V..,%

power skills; the pre-empting by
the government of the develop¬

country's natural re¬
major - industries

ment of the

qualms
stem from the possibility,
important

».

the gross

investment;

portation facilities; the smallness
of the Turkish home market for

tution.

New Issue;

private

inadequacy

of Economy and Com¬
merce, and the Council of Minis¬
arrangement, it is made effective
ters, the new law guarantees to
by binding moral and political
foreigners the right to transfer forces.
But, coincidentally, right
without limit
all profits earned
after
this interview, the writer
subsequent to Dec. 31, 1953 as learned that
only during the pre¬
well as principal. Such withdraw¬
vious week—with the statute's ink
als are to be made into the in¬
barely dry—it had already been
vestor's currency of origin at the
bitterly attacked by the out-ofofficial rate. In the case of loans,
power Republicans (the Left-er of
all
principal and interest when the two Parties), who although
due may similarly be withdrawn
professing the furtherance of free
and transferred without limit.
enterprise, are out to cut down
Importantly too, there is in¬
the investor's preferred position.
cluded an overall provision con¬
ferring the same general rights Always, attack on foreign capital
Ministry

over

February to

and

sources

(with losses made up by subsidy);
albeit that economic development
by private enterprise is being en¬
couraged to the fullest possible
extent.
As of the present, the

country's vast variety of mineral
including chrome, cop¬

resources,

manganese
and
coal, are
largely owned and under develop¬
ment
by
the government, and
seemingly not readily open to
private
foreign
investors. The

per,

other resources not

controlled by

the Government have been of
limited
tors.

.

The

to foreign

interest
.

only

inves¬

"«

'

Country's

'

Difficulties

worrying the surveyer of

Also

investment

are
the
difficul¬
ties, stemming from recent living
beyond its means and mistaking
standard
of
living
rises
(with
frigidaires and motor cars) for

country's

possibilities
fiscal

current

increase in real wealth.
to

the

EPU to

lion

of

(some

tune

it

A debtor

of $150 mil¬

past

due

since

November 1952), Turkey has been

finding

increasingly necessary

it

to restrict the withdrawal of

Continued

•

on

their

41

page

4

$71,000,000

,

units, "Ward's Automotive Reports,"
Friday of last week.
The March total was only 5% under March last year (521,000)

and

liberalizing

major

passed

five-month high of 493,000

stated

disputable highly favorable longterm prospects.
Included among
such negative influences are: the
relatively limited natural re-;
sources in the entire sector open

trial revolutions.

ment

econ¬

entrepreneur

Social

Some

the

which may temper the im¬
proved legal climates and the in¬

representative).

to

seem

and

Hotchkis,

in

inherent

/

'

sales soared 23%

relationship

other economic char¬

are

omy

and
im¬

also with the overall problems

Economic

There

acteristics

; The Turkish economic leaders' following
everpresent
domestic
hunger
for
foreign
capital
is political demagoguery, of subse¬
sharpened by the dire heed for quent change in the law.
This
home production to back the fat¬ would
presumably be facilitated,
tening of its consumption econ¬ in contrast to the legislative sit¬
omy.
Over the longer view, the uation in Greece, by the law's
increasing need for private invest¬ non-incorporation in the Consti¬

'sinking but demand for structural products continues good, this
March domestic

capitulations and concessions.

not only with

up

borrowing

pattern of agriculture and indus¬

moderate; with no sharp improvement in demand.
A check by "The Iron Age" of individual steel consuming in¬
dustries reveals a luke-warm auto demand has been a bitter dis¬

this
is

query

prospective

the

The

proving, it adds, are indications that overall economic activity is
leveling off, although on a lower plane than peak 1953; inventory
corrections are slowly becoming less of a factor even though they
will continue a potent influence for some time and that labor
negotiations in the next two months, with obvious possibility of
expected to convert a lot of steel users to a buying
mood. The union, it continues, is aware of possible market stiff¬
ening and is holding off final demands in the hope its economic
hand might be strengthened.
These positive factors make it a good bet that the next sig¬
nificant move in the steel market will be upward, but probably

The

areas?

livered before the United Nations

per¬

foreign domination via a series of

which

associate
is

timidity is no doubt due in large
part to experiences during the pe¬
riod of the Ottoman Empire when
the Turkish economy fell under

of

aid, convertibility, and trade (as
outlined in a speech currently de¬

ment

are

1,

and

diate prospect.

strike,

10%

same currency

sincerely

capital for development
particularly in some special fields,
its attitude is still cautious. This

Aug.

of

policy of statism and
looking for

its

been

foreign

withdrawal

after

States

are

passed

maximum

capital in the

akin to Canada's of a

profit

statute,

annual

an

sonally convinced that her oppor¬
tunities
for
development
and
decade

"The Iron Age" this week again

e

Tur-

German

by

i d

eco¬

of the Randall Commission

quarter

rated capacity, it states.
:
A check of the market by

May

notably

American

decline has been arrested and in recent
weeks producers have even been able to work off much of their
semi-finished stocks while holding the ingot rate steady.
This
means the market is in fair balance at a little over two-thirds of

a

has

1951, had generally limited for¬
eigners' withdrawal of earnings to

t

t husiasm

nomic
as

this week.

no

Wilfred

future,

e n

the

1 d

about

at Moline,

first

d

coupled

111., though some did not return. It's now
employing 7,600 there, only slightly less than a year ago. J. I.
Case Co. reported its employment at Racine, Wis., had reached the
low point around the close of 1953 and is now on the upgrade.
Borg-Warner, parts maker, predicted its 1954 sales to farm equip¬
ment producers would top last year's.
In the steel industry the next 60 days will probably go a long
way toward shaping the course of the steel market in 1954, according to "The Iron Age," national metalworking weekly, declares
The

e

vestment

a

relaxed

new

with

trade

plays

of his decision about coming

liberalizing

Its labor force now totals 56,611,
highest since last August. Aided by demand for new products,
Harvester's February sales were the largest since last July.
Deere & Co. stated it had called back 1,150 workers idled late
year

t

a

importantly

during the last four months.

shows

crux

of foreign invest-

cons

decrease of 80,000 in the number of insured unem¬

a

pro-Turkish investment
For instance, it must
overlooked that funda¬

the
Government
still
dominant role in the econ¬
omy
of the country.
Although
since 1950 the Government has

new

.

getting better, though employment and weekly earnings
to
drop.
The Secretary's optimism was attributed

was

last

of

liberality of return and early recouping of his capital.

continued

ers

effects

ISTANBUL, Turkey — Turkey and privileges to foreign as is af¬
offers
a
particularly important forded to domestic investment.
area for timely
The preceding liberalizing in¬
discussion of the

According to the Secretary of Labor, the nation's job situa¬

be

not

weighs

contrast,

noted, were

The

May

exchange

local conditions.

unemployment again declined as both new and
continued claims held below the preceding week. Recalls, it was

tion

medal of

problems.
Details Hilton Hotel
operation and interim results. Warns investor must adapt to

the year-ago mark.
In

on-the-spot

current

and continued to be about 10% below

the reverse side of the

enthusiasm.

investor-favoring foreign investment law. Cites remaining
qualms, including domestic political exigencies, and country's

the country as a whole in the period
Wednesday of last week was somewhat lower than the

additional important

are

on

mentally

In

industrial production for
level of the preceding week

There

factors

By A. WILFRED MAY

Index

Business Failures

J
ended

political targets!

Production

Auto

and

"

Electric Output
Retail

State of Trade

supplies the choicest of domestic

What Investment

/

5

(1665)

on

was

secured by a

seven-month peak selling rate of 20,000

Federal Land Banks

c^rs

daily in the month's closing 10-day period despite severe weather
in strategic
But

buying

the selling

to

March
"Ward's"

7%

•

used

reached

car

the

best

at

new

D«e May 1, 1959

Dated May 3, 1954

pace,

sales

Bonds

2%% Consolidated Federal Farm Loan

it reports.
industry's factory

areas,

the

production was geared
domestic dealer inventories of new
-cars remained at the 650,000-unit level on March 31, pointed out
-this trade authority.
The statistical agency added: With new car production again
aimed at a 500,000-unit volume for April, only a further sales
increase will pare stocks. Car sales in 1953, "Ward's" noted, were
marked by consecutive monthly increases until the year's peak
of 549,000 was established during May.
-closely

because

Not Redeemable Before

The Bonds are the

Banks and

are

The Bonds are

Maturity

of the twelve Federal Land
Federal Farm Loan Act as amended.

secured joint and several obligations

issued under the authority of the

eligible for investment by savings banks under the statutes of
York and Massachusetts. The Bonds are also eligible for
trust funds under the statutes of various States.

States, including New

of the
the investment of

a majority

dealers, according to
last July, forcing stocks

car

point since

below the all-time peak set last November.

100% and accrued interest

Accordingly, the
a month's sup¬
stand as a bright

.reporting service said, such inventories are below
ply for the
;

first time since last August and

spot in the automobile market picture.

This offering is

-

truck production in

high for the
5.4%
the
"

year

week last year,

*.

The volume was

Macdonald G. Newcomb, Fiscal Agent

but under the 164,932 totaled in
"Ward's" observed.

31 Nassau Street,

New York 5, N.

Y.

,

,

.

j

.

.

.:'v

Vi

!

'

Construction
-

United States plants edged over the previous

to 146,142 units the past week.

above the preceding week

same

made by the twelve Federal Land Banks through their Fiscal Agent,
of a Nation-wide Selling Group of recognized dealers in secuiities.

with the assistance

Reflecting optimism sparked by this sales upswing, car and

outlays in the first quarter of 1954 rose to $7,-

300,600,000, an increase of $100,000,000 over a year ago and a new
high for the period.
After allowing for seasonal factors, the

:/

'




Continued

-

t.'-l

on page

Apr ill 4, 1954.

46

•

:

i

,v

$

I

i

'VtV.

Mr*,*

a

*

"

I

£

6

with the purposes and
which

Municipal Finance
Problems in 1954

studies for
This is

established.

was

should

it

as

it

The

trend toward cen¬

tions

might continue if the Com¬

ities

of

upon

Calls upon

influential

Early in March 1953, local gov¬
greeted with en¬
the creation, by act of

now

Congress, of the Federal Commis¬
sion on Intergovernmental Rela¬
tions.
That act produced a body

withal

for which local officials had been

complexity of modern
inter-governmental affairs. Their
interest naturally is in what shall
be proposed thpt will affect local
governments and their people for
better or for worse. Organization¬

The
city

contending for some yearsj
voices of village, town and
officials

had

been

wilderness of

more

crying
and

in

a

ex¬

more

pansion of Federal powers that
impinged on the traditional role
of activities of local government.

some

and

ally

some

progress seems

to have

been made.

for

years

the

and
of

stream

economic, which in
history of govern¬

and to study

the problems result¬

tried, found wanting and not fa¬

from removal of < Federally
acquired property from local tax
rolls and situations in which the

vorable for the ultimate best wel¬

Federal

ment in other countries

had been

fare of the people. Local govern¬
ment officials were not too happy
with

the

the

organizational

setup

Commission when it

new

discovered

that

local

had been awarded

voice of

one

among 25.

government

place—the

one

mayor

of

was

as

member

a

Such award

was some¬

what disappointing in view of the
wide
acclaim
with
which
the

Commission

Indeed,
ment

some

received.

students of govern¬

£nd persons in high political

places
to

first

was

called

write

a

it

the

instrument

Magna Carta for local

governments.
Commission
The
new

is

roster

true

bers of the

and

Roster

of

Impressive

members

of

that

new

several

It

Commission have,

in bygone years, served local gov¬
ernments in elective or appointive

capacities, and it is widely rec¬
ognized that such persons certain¬
ly obtained a measure of sym¬
pathetic
understanding
of
the
views and the problems, including
financial, confronting local gov-

the

in

an

address by

Mr. Clark

at

the

use

from

city

and

town

with them certain responsibilities
implying sufficient local financial
resources, taxing and other abil¬
ities to supply services to people
living in local areas. The pleas

because people in
villages, towns and
cities seem to have grown rather
weary of "faraway" government¬
al influence and they wanted less
Federal fingering of local activ¬
largely

arose

At the

same

time it

ex¬

was

that the Federal treasury
help, more or less, by con¬
tinuing its financial support of
should

activities

local

The

situation

of

have both

cake."
and

bit anal¬

a

the adage that "one

ogous to
not

kinds.

various

became

The

the penny

can¬

and the

degree of the wishes

wants

voters and the financial

Undersecretary

the

of

nesota;
former

In addition there

Ohio.

are

seven

public members consisting of two
city mayors, one state legislator,
one tax attorney, one representing
a
national
tax
association, one
and

one

representing

a

state tax study grpup.
It

also

was

that

recently announced

study committee

a

on

Fed¬

was

resources

of local governments.

ator Hubert H.

Humphrey of Min¬
and Charles Henderson,
Mayor
of
Youngstown,

This is not intended to be

dis¬

a

for

levels.

the

officials

Local

general

welfare

of

pat

no

and

answer

ques¬

rela¬

state

local

and

levels. It will require
effort, time, talent, patience,
and earnest study on the part of

much

■those

in

state

our

and

national

legislatures and those comprising
local governing bodies.

The

Economic

President

freedom

from

with all

attached,

Federal

assist¬

its irritating strings

all

not,

were

still

and

not, economically and finan¬
cially able to do the things neces¬
sary to be done without resorting

Report

of

the

(page 67) presented to
Jan. 28, 1954, said

Congress
this:

"The

small

prospective

decline

in Federal expenditures will
prob¬

ably be counteracted in large part
by a rise in State and local pur*;

chases, which in
of

level
In

slightly

recent

in

crease

1954 .reached

the

years

a

$25 billion.

over

in¬

annual

federal

modern

financial

trend

aids.

If

the

expenditures has
been close to $2 billion, and there
is
still
an
immense
backlog of
demand
for
schools,
highways,
hospitals, and sewer, water and
other

facilities.

the

Public

expansion
local

of

ing and it

pressure

and

improve¬

facilities is mount¬

entirely

seems

reason¬

able to expect that State and local

expenditures will continue to in¬
crease.

centralized

toward

"The financial situation of State
and

local

able

to

governments
continued

a

expenditures.

favor¬

is

rise

in

their

State and local

re¬

then local officials should be pre¬

pared to

$13.2 billion in 1946 to almost

phases of intergovernmental rela¬

nancial

be

cre¬

by the Commission. The work

load

of

this

new

Commission

is

tions will expand. The uproar that

government is

the

when

occurred

chairman

its

1954

will

the

Commission's

also

federal

February

have

from

the

meantime

and

its

the

committees,

Commission,
can

get

on

expenditures

overworked

and

terms.

local

in balance dur¬

were

and

State

of

is

governments

the

size

of

agents to

as

local

administer
and

governments

some

due

in

some

governmental

there

year

that

allocated

course- are

turned

measure

units.

is

So

little

and
to

re¬

local

far

this

major changes will

aids,

occur

in

shared

taxes

and

subven¬

billion

$23

mid-1953.

Some

part

this

of

amount is

committed, but the un¬
committed portion is undoubtedly
large relativp to current expendi¬
"Despite
position

the

financial

strong

State

of

and

local

ernments, the principal
funds

for

additional

gov¬

source

capital

of

out¬

lays will have to be from borrow¬

ing.

The

local

increase

debt in

has

been

the

in

and

State

period

postwar

substantial.

However,

the cost of carrying

this debt has
changed appreciably relative

not
to

total

tures.

and

state

Interest

local

charges

expendi¬
have in¬

creased moderately since 194-3, but
'the

requirements

interest
not

In

governmental agencies in financial public relations,

recent

sible
detect

improvement of public credit, sound financing of

speeches

Federal
a

move

of

officials

and

on

account

retirement

debt

of

toward

may

change

in

policy away from Federal finan¬

capital requirements and other problems of

likely

to

be

an

are

important

respon¬

one

impediment to bond financing in
the

This

statement

aids to states, local govern¬
ments and their sub-divisions. The

the present

significance of

Inquiries about this individualized service are invited.

and

a

change in

policy

is

a

prelude

to

hopes

Administration's plans
that

State

and

local

should not be underrated by local

Wainwright, Ramsey & Lancaster




Consultants
70

PINE

STREET

on

•

Municipal Finance
NEW YORK 5, N. Y.

*

governments may devote some of

officials

their

especially

change will
ties

will

finance

mean

have
some

to

because

any

financial

resources

to

ac¬

their communi¬

quiring essential public works and

be

thereby fill the gap that will-take

prepared to

services

which

the

Great .White Father in. Washing¬

con¬

responsibility of
their municipal

and

In

commenting

the role of

on

public works in the national econ¬

it

omy

is

the

in

stated

same

report:
"A strong economy
national estate

requires that

the

less

no

of

and

soil

conserved.

be

resources

It

important that schools

and welfare institutions,

highways

and

airports, rivers and harbors,
parks and recreational areas, and
other

needed

facilities be
concomi¬

public

and improved

enlarged

tantly with the increase of popur
lation, private wealth, and in¬
Indeed, failure to augment

comes.

public assets may check

our

private wealth,

of

the

the

as

failure of the present street, high¬
way, and

the

parking systems to meet

needs

million

55

of

vehicles is

motor

threatening to do.

now

"A growing economy

it

needs

new

brings with
buildings and

for

that clearly
of private

engineering projects
lie

the

outside

realm

enterprise.-Many of these needs
—for example, for schools—should
be met as they emerge. However,
considerable

of

number

public

projects are, by their very nature,
more or less postponable.
".

.

A considerable

.

advance

preparation

amount of

of drawings

and

specifications has been com¬
pleted by Federal, State and local
governments.
If it should be¬
.

.

.

come

outlays for Fed¬

necessary,

eral

public works could be stepped
up by one-half or more within a
year.
State
and local ? outlays,
which are now the highest on rec¬
ord, might be expanded to
lar

if financial
adequate."

extent,

ments

were

The

continues:

report

"It goes

effective
must

simi¬

a

arrange¬

without saying that an
public works program

meet

public

genuine

needs

and thus earn the endorsement of

the

community

patible

with

.

.

must be

.

com¬

construction

private

activities, with which competition
resources should be kept to a
practical minimum. Furthermore,

for

place

as

terials

Federal spending for ma¬

in

a

public activity should sup¬

as

also

should

Federal projects sup¬

plement those of States and

mu¬

public works
program must be capable of ad¬
ministration wfthout centralizing
nicipalities.

the

Yet

a

operations

of

government;

local

and

State

governments

should carry their full share of
responsibilities."
(Italics by Mr.

Clark.)

-

There
local

i

have

we

officials

writers

and marketers

obligations

pal

what

cept

well

as

as

under¬

of munici¬

probably ac¬

can

has

.

Thoughtful

it.

quoted

been

as

broad Federal Administration pol¬

icy. Local officials

can

and should

promptly begin to reexamine and
the

review

of

plans

communities

for

the

and

maintenance

their

own

acquisition,
of

operation

public improvements, if they and

future."

near

cial

public finance.

and should

been
the

be

plement and encourage private, so

reached

tions.

advisory service has proved its value to all types

to

States

just

which

appearance

the present pattern of use of state

gov¬

as

ings?

tures.

act

their

some

their cash and U. S. security hold¬
in

revenues, for ex¬
gasoline, corporate fran¬
chise, tobacco, and various other
taxes. It is becoming more clearly
recognized too that it is mainly
local people, the inhabitants of a
state, who pay the monies that in

independent financial

and

strength

concerned, these

are

ample,

20 years our

receipts

financial

as

misunderstood

districts of

VITAL LINK!

that

Further evidence of the

far

Local as well as state officials,
political economists and thought¬
ful other citizens clearly recognize
that the several states necessarily

to

Municipal finance

Preliminary esti¬

indicate

mates

$28

ing 1953.

become

sometimes

revenues

billion in 1953.

aids, subventions and

called state

in

In

in

reversal

a

so-

shared taxes

in time.

philosophy,

So

source.

separated

away

meet

a

as

present pattern of federal fi¬
aids with the probability

became

activities
fade

political

of diminished local
a

first

of

matter

arrested

now

It should

.

of

subdivisions."

a

these

are

to

.

.

use

on

heavy and important and it may
be expected its studies of special

ated

will

relations

the

growth

Government Expenditures

.

ment

ance

produc¬

our

revenues,

has

grams

tinue

is

is

solving of the current heavy
tion
of
intergovernmental
tions as between
Federal,

for

for

the

also

water

There

cussion

ties

devote

to

potentialities increasingly to

ties.

aids.';

for
or
against Federal
But, while many communi¬
may have fervently
wished

in

they may
be released from military and for¬
eign aid programs or generated by
economic
growth, to help build
the nation's physical stock of pub¬
lic capital.
In our country, the
major part of public works pro¬

problems to solve—both political¬

the collection and fair distribution

of

all

at

indeed in the middle of hard

are

must

over

life, including govern¬
operation and administra¬

mental

ceipts have increased by roughly
$2 billion a year in the postwar
period, with the total rising from

eral-local

consultants on

For

of

way

American

pected

mission:

Treasury Marion B. Folsom; Sen-r

changed

a

nation's

clude three members of the Com¬

from
*From

Municipal Forum of the Eighteenth An¬
nual
Conference of the Central States
Group, Investment Bankers Association
of America,
Chicago, 111., April 1, 1954.

governments

the

to

usually measured
by the political complexion of the

the

mem¬

state

of receipts and
Federally owned
land and other joint operations.
The members of this group in¬
share

revenues

banker

Commission is impressive.

quite

ing

return of local respon¬

a

sibilities

out

this Report noted the op¬

.

the people in our local communi¬

halls and courthouses also carried

lieu-of-taxes and shared revenues,, ities.

political

Responsibility

Pleas of local officials in recent

centralization

both

toward

uted

best

the

The

Nonetheless

facts.

spelled

peaceful purposes.

reexamine and determine what is

Local

Commission, whose life has
been extended to March 1, 1955,
recently appointed a committee to
consider
Federal
payments-in-

activities

recom¬

is

...

century have profoundly contrib¬

and snarl the issues.

Many looked with dismay at the
modern trend believing that ex¬
pansion of the Federal establish¬
ment portended more and more
of

munications since the turn of the

it
is
recognized
that
political
philosophies can possibly becloud

trepidation, to learn

Commission will be in the wilder¬

and

ly and economically. The solving
of the problems entails a thought¬
ful approach with open minds to

discovered

interest,

what the recommendations of the

ness

Consequently

mendations which should be based

modern

much

level.

having to make ultimate

officials

Local

Federal

on

.

tive

be regarded as

the Commission is confronted withr tion

ernment officials

with

on

away from more
centralized authority at

more

the

ernments, particularly in recently
times.

govern¬

have an
future pol¬

may

turning

a

and

thusiasm

await

local

likely
bearing

very

icy and

factors in municipal improvement.

rent

and

state

ments

municipalities, so that the heavy volume of forthcoming debt
obligations will be absorbed by private and institutional inves¬
tors. Reveals municipal projects underway during the next five
years will require $5 billion, more than half of which sum must
come from general obligation bonds. Points out current deter¬

expansion

".

portunity

ernmental

ities to prepare

|

much

However

future.

This

Chapter 10 of the Economic Re¬
port in which it is stated:

undesirable and to
be avoided, nonetheless the tre¬
mendous proficient technological
changes that have occurred in in¬
dustry, transportation and com¬

discontinuance

by Federal estab¬
the
traditional
position, powers and responsibil¬

municipal¬
for diminishing revenues from Federal sources.
investment houses to increase financial counsel to *

in the foreseeable

and

now

minishes.

of

for

lishments

and local governments, Mr. Clark cautions

to states

with

dealt

be

must

Thursday, April 15, 1954

.

mean

encroachments

it

which

.

centralization of government may

mendation

Calling attention to the Federal policy to limit financial aid

This then is one local fi¬
problem
in the offing'

nancial

.

On the other hand, recom¬

uation.

Municipal Finance Officers Association

in financing, for two

contin¬

mission recommends such

Executive Director,

or aiding
decades and

has been .financing

ton

longer.

be.

modern

tralization of governmental opera¬

By JOSEPH F. CLARK*

f

Chronicle

The Commercial and Financial

(1666)

defense

economy

di¬

their municipal colleagues are not

already

doing

in

not

necessarily,

but

an

a

present

era

change

at

we

an

adverse change,

that

implies

that

financial policy and

ministrative

ods

Evidently

so.

of economic change,

are

local

ad¬

procedures and meth¬
governmental

Continued

on

levels

page

32

i

Volume 179

Number 5316

.

.

The Commercial and Financial Chronicle

.

(1-367)

well
as
superior impact
strength and quick repair.
Prop-

(A) Foundry Core Box: Total of

as

Plastic Tooling

erties
to

By Dr. ROBERT S. ARIES*

• ••

.

■-./

•;''•••. •' *

;

:c-V;i

>'7.

.

//r

1

•

••••',

Dr. Aries reveals extensive

applications which

use of
plastics for industrial tooling
revolutionize the automotive, aircraft
Stresses lowering of production costs

may

and

foundry industry.

due

to

The

of plastic tools, which, he estimates,
American industry $30 million in 1954.

use

will

"Aritemp" type of modified

both

The

of

use

plastic materials in

tooling applications has
a
tremendous
impetus

received

during the past

New

year.

dein

vcxOpments
•

n s

a n

d

manufacturi

n

methods

g

have been de-

veloped

a n

many

s u c

cessiul
tools

-

plastic

built

at

substan-

very
tial

d

time

cost

and

savings.

Aircraft, auto¬
motive, / and
foundry applications
Dr. Robert S. Aries

orM.

steadily

„

eir

Ugs

a

in.

pa£e'

maustnes
t

have

developed at

have

of

range

form

and

heat

counterparts

resistance

and

pots and

stirrers, and if possible,

an oven.

Ordinary shop tools are

Aritemp resins have a flexural
strength of over 20,000 psi cast
and 60,000 psi in a glass cloth

~

sufficient for processing work.
i.

laminated
cnorinv
Btrpn(j+h
superior
strength

evhihit
exhibit

properties to cast materials. Com¬

pressive strengths
can

be

obtained

forced

plastic

20,000

psi

up

■

strength of laminated tools is also

Plastics

nrfiiont in

^

Phenolic resins have been used

Their

inherent

disadvanlow im-

pact
poor

strength and comparatively
hardness.
Polyesters were

QP

mon

in

197,000

npw

larize

themselves with the properites of the materials
concerned,

elapsed

epox-

have

their initial introduction in this field, yet in 1953
over

''

"

•'

•

-

,

,

pounds

of

epoxies

2 5 C e S s a r y manufacturing have

methods, and the savings obtaince.

been sold for tooling use.
Epoxies offer important advan¬

tages both in cast and laminated

Proper application of plastics
for tooling application can result
in substantial cost reductions
both
as

regards production
time.
Other
equally

costs

and

important,

forms.

These include better me-

m& dies' etc*
(2) Industrial Fixtures: Check-

Plastic

Laminating

glass laminate

(15

Stretch

examples.

Masters

and

4 ft.)

x

Draw

dies—over

135

•

from

0

one;

The

savings

rather

by

4

which

be

can

material

The use of
epoxy
resins for
tooling is another example of the
development of a new plastic to
fit well a particular mechanical
application, resulting in expansioa
and cost savings in both.
'

With Leo Schoenbrun
(Special

LOS

dies

F94B

$9,920 second

$20,480
one.

first

first

conventional

panels

manu-

can

Financial

of

Leo

Westwood

Schoenbrun,

Boulevard.

$1,-

one;

amples in various fields.

(3) Use of unskilled
produce
tue

of

excellent

labor

can

This announcement is neither

.

over

-

to

The

Financial

days—in plastic 21 days. Cost sav- Building.

nor a solicitation oj an offer to buy
offering is made only by the Prospectus.

NEW ISSUE

process

(4) Lower tool

investment;

room

April 14, 1954

200,000 Shares

equipment

material

reduction

be effected because of process

simplicity.
Present
that the

ing

experience

has

shown

Long Island Lighting Company

advantages of plastic tool¬
conventional

over

Preferred Stock, 4.35%, Series E

manufac¬

turing

processes increase directly
the size and
complexity of

with

the

part

to

be

produced.

benefits

mum

realized

are

tools

ing, etc.,
result

with

tages is

con¬

Price $100

polish¬

these

additional

not

immediately

ap¬

The

parent to the uninitiated.
Materials in

Materials

for

duction

epoxy

by

tool

resins.

may

be obtained in

as may

any

State from only such

legally distribute it in such State.

pro¬

phenolic, polyes¬
Tools

using either

Prospectus

oj the undersigned

Plastic Tools

plastic

include

ter and
made

Share and accrued dividend

advan¬

added substantial cost

an

reduction

be

per

eliminated. The end

are

of

grinding,

as

(Par Value $100 Per Share)

Maxi¬

large intricately shaped and
toured

oj these securities.

by vir¬
simplicity—conse¬

quently lower labor costs to start

can

any

results

with.

can

W. C. Langley & Co.

The First Boston Corporation

Blyth & Co., Inc.

simple

easting or laminating techniques.
The latter method utilizes usually

Smith, Barney & Co.

.

Glore, Forgan & Co.

Goldman, Sachs & Co.

glass reinforcement in the form of
cloth.

Layers

pregnated

of

with

cloth

are

and

resin

a

im¬
laid

the contours to be reproduced.

on

Enough layers
model

to

thickness.
can

be

upon

the

desired

Laminated

both

cured

perature

placed onto the

are

obtain

in

at

tool

an

room

tem¬

oven

ployed.
Both

of

cast

with

a

laminated

and

high quality

can

minimum

be

of

...

„:

Kidder, Peabody & Co.

.

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation

tools

Union Securities Corporation
...

f

White, Weld & Co.
■

Paine, Webber, Jackson & Curtis

•

-V

Carl M. Loeb, Rhoades & Co.
'

Salomon Bros. & Hutzler

Shields & Company

produced

equipment.

Direct work against plaster, wood,

etc., is possible without any
*An

Hemphill, Noyes & Co.

Incorporated

assemblies

depending
the specific formulation em¬
or

Harriman Ripley & Co.

address

Company

W; E. Hutton & Co.

Laurence M. Marks & Co.

Incorporated

dif-

by Dr. Aries at the An¬
nual Tool
Engineers Meeting sponsored
hy the American Society of Tool En¬
gineers, New York City, April 6, 1954.




A. C. Allyn and

Tucker, Anthony & Co.

1385
Saltz-

Joins Gordon Graves Staff

20,000 pieces made to

offer to sell

an

The

Mr.

was
previously with Gross,
Rogers, Barbour, Smith & Co.

yet not immediately obvious ad¬
vantages, include the following:

(1) Weight reductions; conse¬
quently lower handling costs.
(2) Greater wear resistance;
longer tool life results.

Chronicle)

Calif.—Loren

Chronicle)

MIAMI, Fla. — John G. Pasco
date, Size 30 in. x 60 in. x 3 in. has
joined the staff of Gordon
deep. Tooling time in metal, 84 Graves & Co., Pan American Bank

be

methods

The

D. Saltzman has been added to the

(Special

than

to

ANGELES,

man

-

dies f ex-Dodge

ex-

workability

alone saved

(C) Automotive: Metal forming
truck wood side

ob¬

best

easy

die:

Plastic die: $6,197
second one.

tools

shown by reference to actual

stability,

metal and the saving will be $70,000,000 in 1956.

237

plastic

of

use

estimated that in 1954 about $30,-

staff

Meehanite

Duplicators:

factoring

sional

5,000,000 14,000,000
Savings

;.V

in

sav-

rodomes:

terns, pantagraph dies, ete.
tained

made

two years at a 40-50% labor

Masters, models, etc. Keller pat¬
/

dies

plastic weight 3,500
Kirksite
metal
35,000
Saving over $10,000 in
materials alone per die.

mold-

temperature

dimen-

Total

000,000 may be saved by the use
of plastic tools, as compared ; to-

pounds.

(4) Foundry Uses: Core boxes,
foundry patterns, match plates,
(5)

Tool-

pounds;

Molds

ing and other fabrication techniques for thermoplasts. Polyester
epoxy

Rezolin

4,000,000

2,000,000

^

f:

The average savings in labor
and material amount to two thirds
of metal tools.
Thus it may be

Typical

and Forming Dies: Vacuum form-

and

of

years*

ing, spotting, drilling, routing fixtures, drill jigs, holding fixtures,

chanical strength properties, high

resistance;

'

used

(density difference). Total
savings estimated (including labor) at over $4,000,000 in two

-0) Metal Forming: stretch and
draw dies, drop hammers, stamp-

(3)

pounds

they

3,000,000

__

Other
,

esti.

(Pounds)
2,000,000
8,000,000

Epoxies
Phenolics
'

can

alone

-

^

since

300,000

«>AV«lr

nnnt

(phenolic) in two years
replacing
more
than
1,800,000
pounds of Kirksite at a saving of
over
$800,000
in material cost

Applications for plastics in intooling work include the

"

plastics;

°etcP if genera'i mLuTact'ur' J1.^ in,vest^ated and of*'er dis" ings. Casting molds for slush cast- 0ne air duct draw die
'operation^ juSt^tarting! In ££
SfcaHont ^ ^ ^ ^ 800 "ours of labor.
Plastic
laminating

of6thiq
2 fraat P?tentl?J tooling applications are the
bphnnvpftliTni technique, it ies.
Barely 18 months
behooves tool engineers to famil-

#

in plastic, compared to 5% in 1953.

plastic

dustrial
f

quite extensively for tool applica-

tions-

1 Qd.9

in plastic tool shop making
60% of all forming tools used by

aluminum.

Work:

,

Resins

approximately 15% of
all forming tooling will be done

in

fn*
50-

duction time for cast plastic tools v-

Phenolic

used

(B) Aircraft: Lockheed Corp.
is a good example—started tooling

Industrial Tooling

in

greatly superior to castings. Prois, however, substantialy less than
that required for laminated tools.
;..K/\*:; j.
v

boxes

core

°unary aany.

of

use

1954

x—

-

company

glass rein-

compared to
castings.
Impact

—

'he™al con-

as

Industry
In

■

to 40,000 psi

with

is
such

only),

Uuture of the Plastic Tooling

boxes

(material

$550

Jr verH

dimensional

achieved by the

ductivity

fillers

350°F.

UirtUn.,

stability a.nd

tools

for

Increased
J

speaking

utntrany
nic
tools

laminate.

■

to

up

.

be

core

000 estimated in direct costs only
in first months of plastic tool shop-

skilled labor required. Total sav- The consumption of plastics
i^g per single core box estimated be broken down as follows:
at four thousand dollars thus far.
1954 esti. 1956

have

a

Major equipment requirements include a scale, mixing

dentalstone

?--°sAA0^ Plas.J-ic approximately
$a0.QU ^material only) no highly

as

ficulties.

m^ta forming tages include brittleness,

greatly enlarged
applications.
The

cast

They are considerably
than their phenolic or

stronger

.

i

r e s

in

of

would

laminates.

polyester
industrial

cost

resins made by Aries Lab¬
oratories,
have
found
applications

operations.

talstone cost $16.00/100 to make—
each good for 1500 cores; total

epoxy

save

Jigs and fixtures—epoxies used
by Chrysler—saving of over $150,-

made from previous material den-

There is no doubt that
offer the most advan-

epoxies

tages to the tool engineer for general plastic tooling applications.

President, Aries Laboratories, Inc.
/;..{■

widely varied
manufacturing

very

specific

ing 50%, labor saving 40%, spotting in time saving 70%.

51,750 cores produced from one
all plastic core box by Airesearch
Mfg. Co., Los Angeles, California,
Still in use—Rezolin 8,000 tool
plastic phenolic used, core boxes

problems.

R. S. Aries & Associates, Consulting Chemical Engineers
and Economists, New York City
-7>

be

can

meet

7

H. Hentz & Co.

Rand & Co.

«

The Commercial and Financial Chronicle

(1668)

G. R. Kinney Co.,
2 Park Avenue,

Mills, Inc.

Bulletin

—

Competition evidently is keen
not only for new issues, but for
prospective buyers as well-these
days; This week two groups bid¬

Gartley &

—

Associates, Inc., 68 William Street, New York 5, N. Y. Also
available is a bulletin on Robertshaw-Fulton Controls Com¬

ding on new issues made quick
readjustments in the reoffering
prices even before the subscrip¬
tion books were opened.

pany.

Recommendations & Literature
It

Nekoosa-Edwards

&

to

an

173

Study

—

Memorandum

Eastman, Dillon

—

Stock Market—In the

Getting Helping Hand

San

current

Notes

NSTA

Security

and

York

Serlen

'

showing an up-to-date com¬

1

Y.

Plastics With

Backbone—Analysis of companies in the rein¬

a

11%

Place, New York 6, N. Y.
Mike

Also in the same issue are analyses of

6, N. Y.

and

current

of Investment Trusts in

discussions

Japanese

221

Growney

____

D.

Jones

Marietta

for Your Reservations!

&

American

Radiator &

—Walston
'omatic
82

&

Standard

'-.y-

'

:
c •

-

•."/■'I;-

'•

•'

Equipment Corporation—Analysis—Winslow, Douglas

IcEvoy, 120 Broadway, New York 5, N. Y.

Ca'Kvrnia Oregon

Company,

Inc.,

ral:I.

Also

pany,

Company—Report—First California
Montgomery Street, San Francisco 20,

300

Portland

available

are

General

reports on Perfection Stove Com¬
Electric

Company,

Security

First

7* "rural Bank of Los Angeles and Tennessee Gas Transmiss.o i

currently is suffering from a case
that
might be summed up as

still
adamant
in
their stand against
prevailing yields on new issues.;
And, it appears, one thing leads
to

Coal Co.^—Analysis—Sheridan Bogan Paul
Inc., 1510 Chestnut Street, Philadelphia 2, Pa.

&

Co.,

Continental Oil Company—1953 annual report—Continental Oil

Company, 30 Rockefeller Plaza, New York 20, N. Y.
Gen "ml

Beverages, Inc.

—

Memorandum

—

Aetna

Securities

Corp., Ill Broadway, New York 6, N. Y.

randa

onr

Merchants

Montgomery Ward
ance

Company.

&

Fire

Assurance

Co., and

Corp.

of

New

National Union

Fire

York,
Insur¬

are

Approx. Market

Textron Inc. 4% $100 Par Ser. B

of the overall situ¬

syndicates this week
in "throwing1 in the sponge" so to
speak, on recent undertakings.
coasting
along in hope of a break in the
ramparts of institutional portfolio
After

managers,

pent-up
own

fortnight

a

of

bankers have given up
and turned

issues free

a

number of
their

to find

levels.

Reluctance of insurance compa¬
nies

and

pension fund buyers to
current of-

|Xonnvr<t .Securities

tors

Member

69 Bid 72 Asked

HA 2-

2400

74

Dealers

55 Bid 57 A.ked

Association

Trinity Place, New York 6, N. Y.




376

is especially

noted,

Stock

of

case

South

Spring

Street,
bers

mem¬

Ex¬

fast rules of the exchange as re¬

Angeles

Stock

Ex¬

change.

M
is

Babich

r.

suc¬

Mur¬

Ward who
retiring

ray

is

from

the

firm

and will make

his

headquar¬

ters in the Los

Angeles office.
Formerly he
he

was

B. Babich

Leo

with the firm in San Fran¬

cisco.

elected

Robert C. Hill has been

Vice-President

a

of Hill Richards

Co.

&

gards working capital position.

the

of

Los

underwritings,
and
the hard and

in

ticipate

Co.,621

Freeing Up Capital

Caught

between

an

unrespon¬

sive market and the need

to free

capital for other ventures,
sponsoring three new of¬
ferings turned these undertakings
up

groups

loose

since the start of the week.

Green

Appointed by

Stein Bros. Boyce
Ky.

LOUISVILLE,
has been

Green

—

Kenneth

appointed Mana¬

these was Detroit ger of the trading department of
$40,000,000 of 2%s Stein Bros. & Boyce, Starks Build¬
brought out three weeks ago at a
ing.
He has been associated with
price of 99 % to yield 2.91%. When
them for the last several years.
put on the free market this issue
settled back quickly to 97% bid
and 977/s asked.
Sutro Co. Adds to Staff
Laclede Gas Co.'s $10,000,000 of
(Special to The Financial Chronicle)
new
bonds
offered initially
at
Largest

Edison

of

Co.'s

101.827 to

the

Of

syndicate

to

bid while Pacific Power &

out at

LOS

yield 3.25% dipped up¬

release

101.80 for

a

3.28 yield set¬

C.

ANGELES, Calif.—Robert

Parks

staff

of

has
Sutro

been
&

added

to

the

Co., Van Nuys

Building.

I

without
NY 1-

is

the

change member firms which par¬

and

101

Meanwhile it was reported

that

tled

'

increasingly

Light's $8,000,000 of 3%s brought
Broker and Dealer

Troster, Singer & Co.
Security

in

100 %

N.A.S.D.

Japanese Stocks and Bonds

Y.

their distribu¬

and

themselves

it

This,

61

obligation

Broadway, New York 6, N. Y.
Tel.:

BOwling Green 9-0187
Head Office

Tokyo

back

to

1003/4

bid

Joins Schwabacher & Co.

asked.

on

N.

ac¬

invest¬

material.

true

Rich¬

Hill

ards &

ceeding

inventories have

bankers

find

on

handicapped when it comes to
setting up groups to bid for new

on

,.£ttt.
al

Material and Consultation

Members:

ANGELES, Calif.—Leo B.

more

<

4% $100 Par Ser. A

"squeeze"

a

of

which must abide by

look with favor upon

-

Primary Markets

Textron Inc.

hand,

be seen in the action of

can

the ghost

International Utilities Corp.—Memorandum—McDonnell &
Co.,
120 Broadway, New York 5, N. Y. Also available are memo¬

one

another.

several

Clinchfield

the

on

The upshot
ation

Company.

in¬

Institutional

trouble.

double

vestors,

Power

fraternity

underwriting

The

This

dealers.

and

cumulated it develops that
ment

'■■■■.%■■

problem for

a

capital.

unsold

As

Sanitary Corp.—Memorandum

to

ideas

second, and perhaps,

a

the form of

the latter's

Co., 35 Wall Street, New York 5, N. Y.

••••

A

Hill Richards Co.

pricing

important

as

takes

Also avail¬

Firing Corp.—Analysis—Graham, Ross & Company,
Beaver Street, New York 5, N. Y.

yield.

Leo Babich Pres. of

elements

these

their

on

has created

New York Hanseatic

Corporation, 120 Broadwav, New York 5, N. Y.
able is an analysis of Central Indiana Gas.

$8,000,000 of first

at 102.461 for a similar

a

underwriters
—

likewise of Southern Indiana

LOS

of

way

quite

Study

new

102.461

mortgage bonds, priced identically

18

1

Refusal

give

Building, San Francisco 4, Calif.
—

of

at

Babich has been elected President

Company—Report—Hubert J. Soher, Russ

American Marietta Company

true of Ohio

priced

Gas & Electric's

given yield level
is only part of the story.

Co.—Memorandum—Edward

Marietta

was

$20,000,000

3V8S,

Bowling Dinner May 6, 1954 Contact Sidney Jacobs
V

Economy

*■'

\|

"v-

Co.'s

30-year
and

This

be.

Edison

Art Burian

,

Co., 300 North Fourth Street, St. Louis 2, Mo.
American

would

31%
28
28
25
23%

foreign trade.

••

American

yield 3% were snapped up quickly
or at least inquiry indicated they

213

ferings below
■

couple of
issues carrying
A ratings and offered to

double

33
32%
32

—

in

interest

more

issues coming on the

new

5 Point Club

Point Club

Tom Greenberg

the Electric Wire and Cable Industry and Spinning Industry

and

A

Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
200

to

market.

33%

(Capt.), Rogers, Gold, Krumholz, Gersten

bit

a

certain

33%

Pulp Industry in Japan—Analysis in current issue of Nomura's
Investors Beacon—Nomura Securities Co., Ltd., 61 Broadway,
New York

veloped

(Capt.), Hunt, Werkmeister, Swenson, Ghegan
Donadio (Capt.), Craig, Gronick, Bies, Demaye
Leone (Capt.), Nieman, Gannon, Tisch, Greenberg
Burian (Capt.), Gavin, Clemence, Montanye, Whiting
Manson (Capt.), Jacobs, Topol, Weissman, H. Frankel
Bean (Capt.), Bass, Valentine, Eiger, Bradley
Klein (Capt.), Fredericks, Murphy, Weseman, Mewing
„
Krisanrj (Capt.), Pollack, Cohen, Smith, Strauss, Define___
Growney (Capt.), Corby, Siegel, Voccolli, Lienhardt
___
Hunter (Capt.), Brown, Alexander, Farrell, Barker

Singer & Co., 74 Trinity

plastics industry—Troster,

forced

an

look up and prospective buyers de¬

Points:

Kaiser

crop—Ira Haupt & Co., Ill

market performance over a 13-year period —
Quotation Bureau, Inc., 46 Front Street, New

4, N.

as

New

of

Team:

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

to

ier by sponsoring groups began

York, Inc. (STANY)
of April 8, 1954 is as follows:

Association

Traders

Bowling League standing

Jones Averages

yield

commitment

policy had its effect

money

Some of those Issues freed earl¬

OF NEW YORK

ASSOCIATION

SECURITY TRADERS

.

Over-the-Counter Index—Folder

been

marketwise.
4i

N. Y.

had

1 % %

to

of

firmation

Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
New York City Bank Stocks—Comparison and analysis for first
quarter of 1954—Laird, Bissell & Meeds, 120 Broadway, New
York 5,

sanctioning a
bank redis¬

pretty well discounted, this con¬
easy

Investment Opportunities lit

Onions—Study of market for this
Broadway, New York 6, N. Y.

in

central

in

rates

count

Federal Reserve

the

action

Board's

Stock Bulletin"—The Nikko

N. Y.

priced

was

Although

Analyzer—Comparative tabulation of insur¬
stocks—Geyer & Co. Incorporated, 63 Wall Street, New

ance

/

originally
yield 3.09% and then repriced
before offering, on a 3.10% basis.

Stock

York 5,

action.

identical

take

to

issue

to

York 5, N. Y.

Securities Co.,
1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.

Insurance

y

This

reduction

Foreign Investments in Japanese
issue of "Weekly

group

ceeded

&

Co., 15 Broad Street, New York 5, N. Y.

Canada and

Winfield & Co., Russ Building,

—

3.10% yield.

a

which took down
$18,000,000 of Central Power &
Light Co.'s bonds as 3Vss pro¬

Co., 10 Post Office Square, Boston 9, Mass.
—

provide
The

Calif.

Francisco 4,

Ltd., 4,

to

Stocks—Bulletin—Francis I. du

Co., 1 Wall Street, New

Chains

Food

Co., Inc.,

Street, Chicago 3, 111.

Co.

down

of National Fuel Gas

Co., 3%% debentures moved ini¬
tially to set a reoffering price that
would
have yielded 3.09%, but
reconsidered almost immediately

Inc.—Analysis—Amott, Baker & Co., Incor¬

Products

took

.which

group

$15,000,000

Toronto, Ont., Canada.

Goods

Consumer

vs.

Pont &

Sons,

Richardson &

Winnipeg, Man.,

East,

Avenue,

Royal Bank Building,
Capital

The

Also available is

Laboratories, Inc.—Analysis—Leason &

Lerner &
Tecumseh

Stocks—Review—James

Portage

Hampshire—Analysis—Ira Haupt

New

Riverside Cement Company—Analysis—Ask for report T-31—

N. Y.

Bank

Canadian

of

39 South La Salle

York—Comparative fig¬
ures on the leading companies for the quarter ended March
31, 1954—New York Hanseatic Corporation, 120 Broadway,
New York 5,

Loewi & Co.,

Street, Milwaukee 2, Wis.

Co.

Co., Ill Broadway, New York 6, N. Y.
analysis of Lehman Corporation.

Reeves-Ely

Companies of New

Trust

and

—

porated, 150 Broadway, New York 38, N. Y.

industry—William L. Burton & Co.,
Street, New York 4, N. Y.

25 Broad

Analysis

—

phase of

from this new

Banks

Service

Reaction Motors,

should, benefit

Energy—Analysis of companies which

Atomic

East Mason

225

Public

understood that the firms mentioned will he pleased
send interested parties the following literature:

is

Paper Company

Thursday, April 15, 1954

.

Speaking «f Competition

Inc.—Annual report-^Q. R. Kinney Co., Inc.,
New York 16, N. Y. '

Mount Yernon-Woodberry

Dealer-Broker Investment

.

.

inquiry for Southern Indiana Gas
&

Electric's

of

$8,000,000

priced for reoffering at

3Y8S

102.461 to

(Special

Knowles

fnr

that,

issue

was

brisk.

has

Financial

Chronicle)

Calif.—Gorham B.
been

added

to

the

staff of Schwabacher & Co., Cen¬

yield 3%, this week, indicated de¬ tral
mand

to The

OAKLAND,

Bank

Building.

He

formerly with Sutro & Co.

was

Volume 179

Number 5316

The Commercial and Financial Chronicle.

...

(1669)

paint

Agriculture

and

varnish

Resource
To the Chemical Industry
as a

plastics
able

lots.5

emulsifiers

There

is

strong interdepend¬
Agriculture and the
industry with Agricul¬

Chemical
ture

supplying

chemicals

shipped

good idea of where much

the

beef

animal

for

finishing

lambs

eat

we

industry is shown in Table

industry

the poultry

on

presented.

are

Chemical

the

efficient

Income

22

42.2

These data show the

ing

plants

to be

area

W. C. Dutton

animals, for the
control of undesirable vegetation
in

TABLE

foods

situation

is

others.

and

country-wide

This

but

Income

Gross

elsewhere, for the
regulation of plant growth, for
plant food and as supplements to
animal

of

group

Butter

is

shipped

Data

from

This

seven

the area.

idea

wish

not

do

confuse

to

lot of statistics

a

you

produc¬

on

Products

and

area

ture

(pounds)

returns

should
of
as

the

and

About

1.3

70

In¬

dustry to Agriculture. Agriculture
a resource to the chemical in¬

various

and

sulfate

industries

and

the

dustry, as previously indicated, is
interpreted for the purposes of

This market for the
Central

of

the

group

^est Northis large

immense

more

to

acreage

and the large
produced or fed
and crops and animals both have
insect, disease, weed and other
problems that can be controlled
or alleviated by the use of chemi¬
corps

cals.

grown,

Plant

food

in

the

form

of

chemical

chemical fertilizers and

supplements to animal foods are
also important. It will be difficult
discuss

to

riculture

chemicals

the
with

specific

for

of

Agricultural

of states

group

welfare

ag¬

reference

not

are

Chemicals."

as

list

of

this

that

agricultural

chemicals

25

Oxidation

of

L.

and

Rist,

C.

E.,

by the Nitric

Dextrose.

J.

5

Milner, R. J., Recent Progress at
Regional
Research
Laboratories.
National Farm Cheniurgic Council, 18th
Annual Conference, March, 1953.
BAIC

of

the

several
of the

tion.

of

years

which

have

come

it

is

fairly good
of agricul¬
of supply to and

This advertisement is neither

an

The

indus¬

tion but I would like to present a
few figures to indicate to you the

products

which

use

on

a

as

a

to

sell

nor a

in

and

States

relation

as

area

to

as

the

unit

a

United

whole. Production

a

formation for nine crops for

in¬

1951

for the United States and for these
states

seven

trict is

so

dis¬

I

Production

(millions)

i

% of
Seven

Hye
Oats

include

materials

The dinitros include

into

Continued

on

solicitation of offers to buy

any

of these securities.

offering is made only by the Prospectus.

33ay

it

point

this

at

to
in¬
the

be
that

may

93

67

industry to Agri¬
much larger than in

is

culture

14

53

118
437

46
45

acterized

2,941

1,174

39

108

36

33

280

85

*30

306

_

(bushel)
(bushel)

37

12

from

.

Agricultural Statistics,

1952.

$18,000,000 3H% Sinking Fund Debentures Due 1974
Dated

April 1, 1954

glance

mere

of the

Data

maps

at a
of the

productivity of the area.
for the animal industry

for the

Wesf North-Central group
presents
some
interesting
with regard to the impor¬

also
facts

tance of the area. The crops pro¬

duced

it

make

natural

a

for

animal production and feeding and
aome

concise data op this are here

utilized

by what is usually char¬
as

the "chemical

indus¬

try" but they are used extensively
my
those segments of industry
that have to do with

220,000 Shares Common Stock
($1

the produc¬

tion of the necessities of life, such
as the food and textile industries

views

Price

the use of agricultural
by industry in general
recently presented on a sym¬
posium similar to this.
was

Animals

on

Farms

Shipped in For

Feeding
,7 States

'

Product
Cattle

and

and calves

on

Cattle shipped

in———
3.7
Hogs and pigs on farms—_ 46.4
Lambs
Data

,s

,

shipped in
from

% of

(millions)
farms. 26.0
,

2.6

Agricultural Statistics,

U.S.
29
43

widely

One

publicized

tained from

of

the

46

*An address by Mr. Dutton before the

per

share

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified to > ['
act as dealers in securities and in which the Prospectus may legally be distributed.

ob¬

an

is

is

processing

wastes

duction

from

made

of

sugar

from
sugar

beets.

pro¬

It

are

used

3

Resources

of

the

East

North-

Central States for the Chemical Industry.
Presented at Symposium on North Cen¬

American Chemical Society, Kansas City,

tral

Chicago, 111., September 6-11, 1953.

States,

American

Chemical

Kidder, Peabody Sc Co.
Eastman, Dillon & Co.

Drexe! & Co.

Blyth & Co., Inc.
Goldman, Sachs & Co.

Lazard Freres & Co.
ii

Merrill Lynch, Pierce,

Fenner & Beane

Stone & Webster Securities

widely in the

Jacobs, P. B. and Milner, R. J., Agri¬

cultural

Corporation

Smith, Barney & Co.

is

also produced from wheat. Vege¬

table oils

The First Boston

the

Jdo^ March 24, 1954.




$26,875

most

chemicals

agricultural prod¬
chlorophyll from alfalfa.
Furfural, an important chemical,
is produced from corn cobs and
uct

72

1952.

value)

Chemicals Made from Agricul¬

tural Products.

glutamate

n

par

of

products

presented. Information on cattle,
calves, hogs, and pigs on the farm
and cattle and lambs shipped in oat hulls.
About 400,000 tons of
(presumably
for
finishing
for corn cobs were used for furfural
market) is shown in Table II.
production in 1952.3 Monosodium
TABLE

Due April 1,1974

Price 99% and accrued interest

,i

set
of
those
who
United and
produce
pulp,
States for these crops would give vegetable oils, leather, fermented
you an excellent mental picture beverages, etc. An excellent re¬
>

scatter-dot

*

the other direction.

672

(ton)

A

Industry and
Agriculture and

Corporation

to

21

(bushel)

{Soybeans

Agriculture
from Industry

Use of Farm Products by In¬
dustry. Agricultural products are
not,
at
this
time,
extensively

(bushel.)

Potatoes

from

movement

255
987

______

Data

Total

31

York

Chemical

Society,

Hornblower & Weeks

Corporation

38

Decker, G. C., The Role of Insects itt
the Economic Future of Man. Agricultu¬
ral Chemicals, February, 1954.

April 14, 1954

Industry. This will be considered
as
a
two way proposition with

ortho-

page

2

NEW ISSUES

Agriculture

the

1,110

(bushel)
(bushel)
(bushel)

Corn

States

34

(bushel)—

Barley
Wheat

U. S.

U. S.

Product & Unit
Flaxseed

of

to

movement from

Production of Nine Crops

f*

Resource

dicated

shows why this

important agriculturally.
TABLE

consideration

is

of the new insecticides.

new

try and industry in general. With
this picture in mind let us (move

importance of this

offer

now

butylphenol. Among the chlori¬
nated
hydrocarbons
are
DDT,
methoxychlor,
Perthane,
Rhothane, BHC, lindane, chlordane,
dieldrin, aldrin, endrin, heptach-

is composed largely of
complex, organic compounds,
of

that

cresol, cyclohexylphenol and sec.

and

most

so

brought
changes in

dinitrophenols, chlorinated hydro¬
carbons, organic phosphates and
many others.
Some of the phos¬
phates are systemic in their ac¬

petroleum and a few products of
plant origin.
The list today is
long

farm

These

small and they were
mostly insecticides and fungicides
based on sulphur, copper, arsenic,

a

potential

source

a

C.

Agricul¬
ture and Food Chemistry, Vol. I, No. 12,
p. 779, Sept. 2, 1953.

Acid

situation

has

the

of

some

products

market for the chemical

a

64

1952.

Mehltretter,

Saccharic and Oxalic Acids

introductions

revolutionary

believed to be the result, largely,

could

classification

along with numerous more

bility 10 years ago. Information
just published2 shows a regular
increase
in
the
production
of

"Agricultural

materials

control

possible to get results that were
not within the realm of possi¬

The

This term cannot be

under

third group. The

about

sharply defined but usually
includes 'insecticides,
fungicides,
soil
fumigants, grain fumigants
and protectants, space fumigants,
defoliants and desiccants, herbi¬
cides and food supplements, in¬
cluding vitamins, minerals, anti¬
biotics, amino acids and others.
come

a

recent

very

The

as

opened new approaches
and the use of

insect

DDT

currently referred

many

insect

run

We

years ago

to

of chemicals to be discussed
fully

by

or

them

introduction of DDT less than 10

the

Chemicals.

that

may

more.

the control of

calcium

only the
to labor

industry but
transportatipn.

and

resource.

a

as

or

cyanamide.
Agriculture, in the
consumption of this immense ton¬
nage of fertilizers, is a contributor
fertilizer

10 rec¬

hidden

attribute

or

i5

damage to
high as 26%
had, prior of 1945,
a
few
well recognized
insecti-i
cides that preformed well against
some
insects,
moderately
well
against others and not at all for
crops

important and this is especially
true of nitrogenous materials such
as ammonia, urea, ammonium ni¬
trate

often fail

we

losses

that

but a re¬
the subject 2

evaluate

and

dicates

but definite products of the chem¬
ical industry are becoming more

to

market

products

in

from

waste

loss

seen,

to drought, too much rain, low
fertility or other cause.
Recog¬
nition of these obscure injuries
along with the obvious ones in¬

million

making these fer¬
Many of them are natural
products, others are by-products
or

significance
normally

is

or

readily
approach to
or

obscure

tilizers.

use.

indicated

production

on

give

16

Statistics,

from

important

U. S.

296

Agricultural

information

and

more

% of

(millions)
(gross inc.-$)_ 817

Dairy prods,

of

I

tonfe

injury

on

ognize

recent year was

a

The

damage

indicates that

operation.
consumption
for

area.

used

are

this

Chemical

from

million

as

4

IV

Dairy

7 States

Product

states, on which this discussion is
centered, because of the high pro¬
ductivity of the farms in much of

with

From

Butter Shipped to Six Major Markets

especially significant for the West
North-Central

based

cent

is

immense

an

insect

obvious

in¬

States

headings

Insecticides.
of

ago was very

and

and

crops

how

on

from

number of animals

important for turkeys, chickens
need
for
(not broilers) and eggs, but it ob¬
modern
chemicals,
is
able
to viously is not a large factor in
the production of broilers.
market
an
immense volume
of
•chemicals
for
Dairy products from the district
agricultural
use.
an
These
chemicals
are
used
for are
important factor in its
economy and information on this
many purposes such as the con¬
trol of insects and diseases affect¬ is presented in Table IV.
Agriculture's

Movement

of

23

from Agricultural Statistics, 1952.

Indus¬

fertilizer

United

country in

18.6

the

on

because

5

546.5

—

The

the

fertilizer

the

but

industrial

for

was

23

Broilers

try, because of

% of U. S.

139.2

(not broilers)

Eggs

other

Data

hand,

7 States

81.7

Chickens

alcohol

the

ricultural

Eggs

Gross Inc. (millions)

'

,

and

in

itself

The

this discussion to include the ag¬

Poultry

Turkeys

profitable
the

From

Product

and

operation and,
on

III

TABLE

Industry for
many products
necessary for

in

production of
saccharic acid from corn sugar4
is well developed and many other
such uses of agricultural products
for the production of chemicals
are undoubtedly under study and
eventually may be of commercial
importance.
/

Another facet of the

in which data

III

being very
dependent on

in

and

from.

comes

or

and

made

shown

beyond

lambs

of

are

extracted

source

comprehension and the cattle and
a

Fertilizers.

general

above.

various

Central

19503

information

no

of

Research

almost

is

the

chemicals, according to
will be taken up individually.

dustry

by the food
alcohol is made

production in

have

much

animals

of

farms

on

and

They*

will be discussed in groups under
the

tons were used in the West North-

I

agricultural chemical

number

be

general

within the last 10 years.

use

done

alcohol

give

products

some raw

which

from

The
to

North-

be

along with an indefinite amount
of grain sorghum were used for

of chemicals in agriculture.

a

between

ence

West
will

groups of

and 45 million bushels

corn

in

use,

use

from

industry but also offers a large market for
manufactured and prepared chemicals. Gives statistical data
regarding agricultural production, and traces movement of
products from chemical industry to agriculture. Describes use
of agricultural chemicals, and discusses some of the
respon¬
use

for

Ethyl

the

This

some

ture

oils

and

industry.

for chemical

Foresees growing

Fats

in

use

area.

instances but most of the
discussion
will
be
for
agricul¬

from animal and vegetable sources
will
soon
be
used
for
making

Mr. Dutton points out Agriculture not only supplies raw prod¬

field.

in

plasticizers. Epoxiplastics are avail¬
several producers in

cars

their

Central

for

form

tank

Asst. Director, Agricultural Chemical Research,
The Dow Chemical Company

sibilities which must be faced in the

to

and

and

fats

dized

By W. C. BUTTON*

ucts

industry

for making detergents and animal
fats
are
used
in
detergents,

9

White. Weld & Co.
W. H. Newbold's Son & Co.

10

The Commercial and Financial Chronicle

(1670)

companies let

Life

Companies' Interest
In Gas Industry Securities
STUART F. SILLOYVAY*

3y

lyzed

some

you

the key to the final de¬

as

cision.

be¬

•

••

•

Distribution Companies
In

I have al¬

it clear to

made

•

•

are

transmission company.

that
our
interest
in
your
industry
exists solely because of the avail¬
ready

•

you

is

cast

the wisdom of this
In fact, I think a
question exists for the in¬
dustry, the Federal Power Com¬

respect of distribution com¬

panies,

somewhat different set

a

considerations

investment

of

The

involved.

is

vast

mission,
bodies

Investment executive

reveals increasing investment of. these

able to the transmission company.

the

28.5%

of prominent life insurance company
organizations in the secu¬
rities of gas companies. Points out these investments, comprise
both gas transmission companies and gas distribution concerns.
Foresees increasing demand for natural gas, and discusses

;

I

This

study should be pre-?
by a firm of nonsuiting
geologists and engineers who are
entirely independent of the pipe
line company and whose assign¬
ment basically is to examine all

-

problems relating to Federal and local regulation of gas prices,
gas production, and gas distribution.
life

The

industry,

of

a representative, has
substantial amount in¬

which I
a

insurance

am

very

vested in the securities of compa¬

nies in the gas

the
major portion "

industry,

which

of

years.

I

10

>

be¬

microscopic

peoples'

had

as

own company

my

of. Dec. 31,

1953 we

invested in the
securities
of
gas
transmission
companies as compared with $3,$133,914,312

some

- -

of

amount

other

figures for

on

gentlemen have a better under¬
standing than I of the fact that

lieve that only

portion of this

breakdown is not available

reveal that

companies

both transmission and distribution

>

and that

'

a

breakdown such

that

as

which I have just given you
matter
of
interpretation

dependent upon the old manufac¬
turing process, and the increase

is a
and
therefore may not be precise in
accordance with your own think¬
ing. This investment in the trans¬
mission and distribution phase of
your industry takes the form of
mortgage bonds, debentures, pre¬
ferred stocks, and a small amount

which

of

motley

admin¬

istered by life
insurance

companies
WOUld

been

.

have

..

Stuart

F.

Silloway;

invested

in the gas industry if it were still

has

would

occurred

have

been replaced by a decrease of a
been deter¬

jsize that would have

mined only by

the ability of the
companies to find someone to take
their remaining holdings off their
hands.

:t\,

In short

then,, the present lofty
investment status of the gas in¬
dustry is due mainly to the d.isT
covery and development of large
reserves
of natural gas and the
vision of the pipe line companies
ia making this gas available to
person# residing hundreds of miles
away as well as nearby. With the
construction of the pipe lines, the
pace
of discovery, the develop¬
ment
of
gas
reserves,
and the
utilization of gas produced in as¬
sociation with oil were all greatly
stepped up. The widespread use of
gas as fuel was, of course, greatly
aided
by improvements in the
character
and
quality
of steel
pipe, the development of the pres¬
ent-day compressor station, the

strengthening

and modernization
of distribution systems, and the
wise
conservation
practices
of
state regulatory authorities in tak¬
ing measures against the flaring
of gas.
I

wish

I

could

tell

the
amount of money invested by life
insurance companies in th.e vari¬
ous
phases of the gas industry.
♦An

address

Conference

Association

La., March

of

before

the

Independent

of

America,
29, 1954.

lyou

New

Gas

Orleans,

In

addition

to

these

investments, my company
$44,423,000 invested in gas
producing properties where the
gas
is contracted for sale and
has

delivery to a transmission line. As
of Decj 31, 1943, we had nothing
invested

in

field.

this

total

Our

investment in the industry there¬
fore is approximately $224,000,000

with $5,743,249 ten
years ago. We feel that our in¬
vestments in gas producing prop¬
compared

as

which

erties,
active

provide

producers

chase of proven

for the

or

for

funds

reserves,

tions,

ex¬

that we are in¬
keyboard of
industry activities.
you can see

terested in the entire
gas

Your

Program

entitled

has

Committee

session

this

Information

Public

"A

Workshop."

I

would

like to take time

to indulge in a
pleasant statistical and word pic¬
ture concerning the great growth
of the gas industry, the romantic
and
glamorous
development / of
certain aspects of it and, in gen¬
eral, to pay tribute to the great
character, vision, skill, and in¬
genuity of Some of your leaders;
but the word "workshop" suggests
that I get down to business.

in order that they may
backed by their
skill, knowledge, integrity, and
reputation that there is an ade¬
make

report

a

the

during which the senior se¬
curity being considered is to be
outstanding and that the deliver¬
ability is such that annual demand
requirements can be met enuring
that period.
Having

obtained

professional

have long since passed
point in demand where they

could

company's purchase contracts
with the pipe line and the pipe
line company's reserve
position
I

companies
in

which

to be certain that the
position does not deterio¬
the future by virtue of

the

the,

tribution

life

have

of

all

Transmission

Companies

Since the bulk of life insurance
£

j

.

■,

•

.u

_

•

j

funds invested U1 the gas lndUSis

lodged

with

transmission

placed privately through the undersigned with
institutions purchasing them
for investment.

invested

various

well

funds

securities

established

-

dis¬

companies

when

ent

that

the

not

was

or

pres¬

initial

appraisal
was
made.
This is accomplished
by imposing upon the 'company
in the
indenture a requirement
that

similar

a

study

reserve

be

(Subordinated),

extinguish

reserves-.*

.

.

the

in¬

v-:

/:.

•

picture are
Considerable differ¬
of opinion exists concerning

extent

which

to

the

senior

which

distribution

of

would

to

appear

com¬

suggest

that either additional gas reserves

with the substantial increase
in the use of gas, further doubt

year,

* t

•

„

21,264
22,146
23,042

23,036

24,001

33,885
35,790
42,090

23,852
24,619

25,850
26,703

28.5

29.4

1950
1951

1952
1953

%

incr.

_

been

the

48,222
52,704
56,948
115.9
>

;;-:y

the

stantial

the

24,953

'

-

;•

.

period,

same

quantities

of

;

,

sub¬
have

gas

discovered, but because of
steady increase in demand,
number
of
years': supply,

based

the

on

relation

of

annual

published by the Reserve Com¬

mittee of the American Petroleum

Institute

the

and

American

Gas

Association,

has
declined
each
with the exception of 1949

year

there

only

was

,

slight

increase.

show

that

in

times

very

a

These

1946

figures

reserves

annual

were

production as
1953. On

compared with 23.0 for
the

basis

of

estimates

just

leased, withdrawals in 1953
9.2

trillion,

ceeded

each

year

sive.

It

to

a

figure

additions

net

re¬

were

which
to

ex¬

reserves

1947-1952 inclu¬
significant that in

from
is

postwar

in

additions

net

years

exceeded

reserves

with¬

1953

only two years—1946

1953.

and

Reserves

"

,

Additions

5

of year

1946—

147.8

line

and

examine the contractual arrange¬
ments
which tlie pipe line com¬

has

pany

the

for

throughput.

sale

these

If

of

its

12.8

160.6

32.5

5.6

5.3

165.9

29.5

6.0

8.0

173.9

12.8

6.2

6.6

180.4

29.1

180.4

periods of time with
line companies, dis¬
tribution companies or industrial
companies with a top credit rat¬
other

.

and

pay

for

contain a requirement
that the purchaser must take or
a very substantial per¬
of deliverability of the
basic ingredients for ;a

centage

line,

the

.

.

12.1

6.9

5.2

185.6

26.9

i

-

185.6

16.2

8.0

8.2

193.8

24.2

1952____.

193.8

14.5

8.6

5.9

199.7

23.2

9.2

11.7

211.4

23.0

.

1953

.

An

199.7

.

Increasing

20.9

I

have

Demand

doubt

no

for

that

Gas

the

de¬

mand

for gas will increase sub¬
stantially in the future largely
through the addition of residential
customers, even though the price
of gas continues to
rise.
I also

have
of

doubt

no

that

natural gas will

the

reserves

increase sub¬

satisfactory investment are pres¬
ent.
In fact, using this
informa¬
tion
augmented by very care¬
fully projected estimates of op¬

siderable evidence to support the
belief that merely deeper hori¬
add

income

and
expense
which have been prepared by the

with

company

the

assistance

of

independent engineers, predicated
upon the granting of rates by the
Commission

Power

to
on

suf¬

provide at least a 6%
the rate base, life in¬

companies have provided

surance

stantially.

much

a

life

ciled
a

by

insurance

cost

invejst

the

After the line has been
for

five

years

may

debt

and

there

that

stantial
from

off-shore

the

will

be

added

locations.

Even

reserves

acceptance

however,
problem

of

these

factors,
eliminate the

does not
that may

one

day

exist

for the gas consumer if this trend

allowed

to

continue.

Regulatory commissions have
already recognized this problem
by prohibiting additional house
heating customers by distribution

companies

in

certain

localities

will

enable

him

to

under¬

stand this

problem and be willing
accept a higher price for gas.

to

is considerable evidence that sub¬

has

been

stocks.

In

study

the

of*a

that-described

-

type

business,

economy

to

as

wonderful

of

purchase

ours,

so

Commission

of

each

a

new

similar

must- be

ana¬

it endeavors

gas from pro¬
obtain Federal

Power

expansion

who doesn't
dynamic

and

more

pre¬

dividend

investment,

this

and

established,

case

more

in

ducers

10-year

a

do

made

in

earnings and

and

stand¬

be

and

and after

contemplated

to

picture,

reserve

25% to

as

beam information to the consumer

I

basically

am

the

problems

Power

sympathetic to
the Federal

of

Commission

other

and

is a
responsibility that requires great
wisdom, patience, and foresight.
This last requires that they be
eternally alert to the implications
of the trend of the relationship
between the supply of and use
of natural gas, and be prepared
to grant reasonable and equitable
rate increases where necessary to
regulatory

Theirs

bodies.

gas

all

investments may be made in com¬

reserve

much

to

pipe line company, more to
the
distributing
company,
and
more to the consumer despite the
efforts of pipe line companies to
develop underground storage.
The principal public relations job
which the gas industry has is to

the pipe line company wishes to

unsecured

mon

as

more

the

physical

on

investments

of

con¬

in the future it will cost

enable transmission and

certain earnings

payments

is

expense. This means that
an
adequate and dependable
supply of gas is to be available

if

until additional pipe line gas
could
be contracted.
Obviously,

operation
met

perhaps

of

domi¬

cannot

there

greater

pipe line unless secured

mortgage

a

the

company

in New York
new

ards,

of

pipe lines.

new

requirements of the law,

property.
in

75%

as

In fact,

in known present fields will

zons

is
as

28.9

1951-J-.

pipe

ing,

.

contracts

for long

are

on

4.9

1950

pipe

based

withdrawal

14.0

other

the

Year'* supply

at end
of year

reserves

10.9

165.9

of

to

17.7

160.6

end

drawals

173.9

.

1948____.

1949

Reserves

Net

additions

With¬

beginning

1947__._.

record

Co. Inc.

394.9

29,882

(Trillions of cubic feet)

Having determined the avail¬
ability of gas and the prices to be
paid for it, we then look at the

ferred stock,

&

22,246

as

financial

over-all

satisfactory.

provided to accomplish the full
pay-back' before exhaustion
of

in

F. Eberstadt

20,562

the

normal life
amortization will be

accelerated

has

Due April 1, 1966

1943

debtedness during its

in

5lA% Capital Notes,l Series a

26,379

drawals

Under

James Talcott, Inc.

20,637
21,417

then dedicated to the line
to

(000,000)

19,835

the

sufficient

Sales

(Therms)

(000's)

19,157

by a firm of independent can be contracted at an economic
geologists at various future dates,1 price or that some other source
usually every two or three years, of supply could be obtained, pos¬
with the proviso that if such a
sibly a return to manufacturing.
study indicates that the reserves I think that with each passing
in¬

Total

Customers

withdrawals to year-end reserves,

made

are

increased by
increased

1947

32.5

development

contingency

have

1946

siderable financing has been done
by some companies which would
provide for leaving a substantial
portion of the issue unamortized,

unforeseen

re¬

sales have

(OOO's)

when

some

substantial

Customers

panies should be completely
amortized during the life of initial
gas purchase contracts, and con¬

constructing

$2,500,000

while

During
insurance

gas

established.

Residential

securities

in

of

permitted

115.9%.

reserve

return
were

further
are

customers

gas

necessary
rate

be

to

are

substantial

number

have issued
where gas purchase contracts and

the

becomes

that

believe

<

ence

then

the

Since World War II, residential

basic consideration.

a

future

it

if

the

assurance
that a supply of gas
'will be available to the line in

years,

their requirements

meet

anything happened to their supply
of natural gas.
Therefore, again
the question of gas supply is most
important and an examination of

years

in

latter

the

quate quantity of gas to supply
the line at ldast for the period of "
is

Federal




respect

companies are still
maintaining the manufactured gas
plants for standby and for peak
shaving purposes, and most of

erating
Gas

try

April 12, 1954.

in

company

ficient

These Tiotes

data

pur¬

are

tremely helpful in aiding the dis¬
covery and
development of gas.
From this picture of our opera¬

Workshop i

Natural

stock.

common

available

of the reservoirs contracted to the

in

engaged

are

the

of

Dec. 31, 1943; and $45.519,847 invested in securities of
gas
distribution
companies
as
compared with $1,992,742 so in¬
vested
at
Dec.
31,
1943.
You

invested

been

but

a

750,497

has

in the past

Such

reserve

pared

•

former

unless

regulatory

whether

to

customers

serves

of New York

other

and

as

increases

ability of natural gas. Therefore,
one
of the first things that we
consider
is
the
quantity
and
deliverability of reserves avail¬

The Mutual Life Insurance Company

I

upon

real

studying a
investment in a gas

prospective

we

Thursday, April 15, 1954

.

assumption.

'

-

■

when

us

majority of
these companies started as manu¬
factured gas units and are now en¬
gaged in selling either straight
natural gas or mixed gas. Some of

Vice-President for Finance

a

give

me

of the considerations that are

fore

.

.

to

approval

of its capacity

to

for
which will encourage the tak¬
ing of risks incident to its find¬

'

ing..'

' ■'.

has

de-,

However,
the

with

rested

since

the

direct

and

nature

large amount will
be found in this way in the fu¬

to

ture,

whether or not it is
this manner, it is cer¬
that it will be found at

found

tain

a

but
in

distributor

contact

is

his.

three segments of
industry — production, pipe

very

Undoubtedly

the

the

line,

reserves

."'I

<

primary responsibility for
telling this story to the consumer

in this country has
been found by searchers for oil.
gas

'5-

The

for

liver the gas to the consumer.
Now the largest portion of our

distribu¬

tion companies to pay a price

distribution

of

interdependent.
one

fore,

—
by the
business are

What

affects the others.

happens
There¬

it is necessary for the dis¬

tributor
lems

the

in

explaining the prob¬
industry to the con¬
tell the whole story as

of the

sumer

to

Volume 179

Number 5316

production,
tribution

.

.

.

The Commercial and Financial Chronicle

lines,

and

dis¬

affected,

but

this

pipe

are

costlier in¬
formation job than the distributor
previously faced.
Therefore, it
is my opinion that there should
be a two-way street of operation
in carrying out this job for in
this operation the producer and
the pipe liner have a stake in
assisting the distributor in tell¬
ing
the gas
industry
story.
I
means

also

bigger

a

associations
Power

the

where

see

can

and

this necessary

Federal

the

and

Commission

trade

could

join in

coordinated indus¬

try information effort.
It

to

seems

mental
the

present-day

a
statesmanlike
jo.b with
respect to regulating both gas and
oil production.
It is evident that

gas

the

must be found.

pyime need for the entire gas
industry is for not only continued
but increased

concepts

of

business must be under¬
stood by the consumer.
No longer
is the major portion of his supply
gas

exploration and de¬
activity.
Anything

velopmental
that

puts

a

restraint

such

on

ac¬

tivity will not only adversely af¬
fect

the

entire

will, within
sumers

and

eventually

gas

industry

but

short period, affect
supply of gas to con¬

a

the available

will, in

withdrawn and sold will

tinue

everyone

familiar with the gas

industry and
certainly everyone in this room
agrees that the volume of natural

will

gas

and

satisfactory credit rating and in¬
vestors

have

been

and

are

now

willing to place their funds in its.
approved projects.
They wlil not
degree of readiness

must

con¬

addi¬

It follows axiomatically that all
phases of the industry will coi>tinue
to
require large sums of
capital.
The industry enjoys a

in the future with the same

so

or

will do

only with considerably greater
pense

that

of

do

consumers

confident

supplies

that

and

opinion,

pay.
am

increase

to

tional

increase

my

substantially

the amount which

I

that the funda¬

me

done

(1671)

ume

so

ex¬

to the industry if the vol¬

of gas

reserves

continues to

decline in relation to withdrawals.

Moreover,

additional

expansion

will be difficult to achieve if

con¬

and the various

sumers

authorities who

regulatory

act for

them

in this dynamic and
ness

tract

which

will

capital in

growing busi¬

enable

it

to

With Rutland Company

are

reluctant to recognize the need for
a
return on the money invested

at¬

competition with

(Special

to

The

Financial

with

the Rutland
Company. He
formerly with Gross, Rogers,
Barbour, Smith & Co. and Marache

was

many other promising and grow-'
ing businesses in our very won¬ Sims & Co.
derful capitalistic economy.
m

G. J. Mitchell Co. Opens

Joins Waddell & Reed
(Special

SAN

to.The

Financial

Ernest

with

York

associated

with

a se¬

Inc.

Wong

offices

at

1420

New

Avenue, N. W., to engage in
curities

chell,

Mr.

business.

Jr.

is

George J. Mit¬
principal of the

a

with
and

firm.

Francis

Waddell

I.

The Very

drilling in other areas.

nature of the oil and gas business,

competitive economy sug¬

our

gests that the more attractive lo¬
cations

subjected to the drill
the less likely are

are

first and

stem

put aside for more intensive work
at a later stage of development.
This means more work, and more
work

greater cost, and the
must
bear a

means

resultant

product

price that will provide the incen¬
tive.
The

must understand

consumer

these

facts

and

if he wants to have

decide

must

then

a

continuous

dependable supply of gas for a
long future period in an amount
sufficient

him

enable

to

his

and

neighbors and friends to increase
their

this wonderful

of

use

com¬

modity.
'

It should also be made clear to

the

that gas is still very

consumer

that increases can be
made in the price of gas at the
cheap

and

wellhead without

raising the price

of gas to

him by 3n amount that
it more expensive
than competing fuels.
would

\

make

Natural gas in Louisiana has re¬
cently been contracted at 20 cents
per MCF for sale to a pipe line
that will be constructed if Federal

Commission

Power

obtained.

approval

The gas would

livered to

a

is

be de¬

distribution company

about

1,200

cents.

Gas for house heating pur¬

miles

away

39.5

at

is sold by that company for
about 73 cents, at which price it
compares with fuel oil at about
8.7 cents per gallon and coal at
poses

Actually, fuel oil
gallon and coal
$21 per ton in that area. I assume
that increases in the price of gas
$14

ton.

per

costs 13 cents per

must

made

be

to

the

consumers

in that locality if the

distribution
company is to earn a fair return
on its
rate base, and it must do
bo

if

is

it

to

be

able

to attract

capital in competition with other
businesses to finance the plant ad¬
ditions necessary to meet expand¬
ing needs.
It is only if the con¬
sumers in a given territory con¬
clude that they do not need or
want more gas and will be con¬
tent with a dwindling supply and
have the

concurrence

propriate

regulatory

state

the Federal

end

of the ap¬

body

Power Commis¬

ignore the
trends to which I have referred.
sion

that

they

can

Price Regulation Problem
4

There

solved

is

at

present one unre¬

question

upon

the wise so¬

lution of which the future of the

This
is, of course, whether the produc¬
ers
of gas are to be subject to
regulation by the Federal Power
entire industry may depend.

Commission

as

to the prices they

Expansion is inherent in the nature of the chemical

industry. Many of its basic

opinion that such regula¬

tion would be extremely difficult

and dis¬
advantageous in end result and
that our present system should
continue. State regulatory bodies,
particularly the Texas Railroad
Commission, have on the whole

end expensive to achieve




raw

plentiful supply. Its methods
markets

are

are

materials

are

in

scientific, and its

Expansion
the chemical

expansion on

industry is, in fact,

more

than

industry, has planned its pattern for
a

policy of helping its customers to

grow...through the development of
better

industry-wide.

The chemical

new

an

industries, and its products provide foundations
for

expansion and growth in

an

ever-broadening

number of fields.
In
new

addition, the chemical industry is a source of
industries,

antibiotics and

stantial effects
American

some

of which, such

synthetic fibers,
on our

as

economic life.

Cyanamid Company,

as a

COMPANY

AMERICAN

plastics,

exerting sub¬

are

leader in

30

and

products developed by chemical research.

industry by itself; it is increasingly a[ part of many

receive for the gas they produce.
It is my

for

Pattern

ROCKEFELLER

PLAZA,

was

du

&

NEW YORK 20, N. Y.

Reed,

previously

Pont

Henry F. Swift & Co.

deep drilling in known areas or
geological and geophysical work
which must precede exploratory

in

Chronicle)

FRANCISCO, Calif. —
K. H. Wong has become

WASHINGTON, D. C.—G. J.
Mitchell, Jr. Co. has been formed

requires

which

of

Chronicle)

LOS

ANGELES, Calif. — R. C.
Williams, Jr. has become affiliated
•

represented by flare gas. Instead,
he is being supplied by gas with¬
drawn from large reservoirs with
substantial annual depletion, the
replacement

11

Co.

&

'

/

t

*

12

The Commercial and Financial Chronicle

(1672)

i

•*

look

Free Trade Must Not

tinental limits of the United States

by

our

for

as

a

opportunity as
Constitution and

weeks.

some

might

you

say

even

fact, I think
I have been

all

this

of

out

In

because,
days on

end, I

saw

no

newspapers or

didn't

fundamental seeds
human

bother

radio

to

So

news

Western

returned,
what seemed

to be

an

which

that
Henry

du

B.

which

looking1

myself

of

country

great

world

ours

times.

A

number

be

sity to

the

the

of vital

max¬
neces¬

was

be

a

left

diplomats

exclusively

and

do

the

to

governmental

It is

;

critical and

a

abroad

sue

well

as

-

crucial is¬

a

at

as

home.

In Europe, we find people looking
hopefully toward this side of the
Atlantic.
There seems to be, on
every side, a recognition of our
country's vital part in preserving
the peace of the world. There are,
of course, some Europeans who
think

of

our

world problems.
This is certainly
true of our business and industrial

of for¬

matters

contribution in self¬

community, for

some of the great
public issues of the times revolve

around

the
question of foreign
competition in the American mar¬

ket.

Here

which is

a

in

cern,

have

we

problem

a

matter of personal con¬
way

another, to

or

in business, whether as
employee, a stockholder, or a

an

business

manager.

A

great debate is being waged
the whole question of our com¬

the other hand, know as on
well as we do how much depends mercial relationships with our al¬
lies in Europe and with the rest
on the United States maintaining
of the world.
The argument is
its position of leadership.
1
Leadership, however, involves advanced that the economy can
heavy responsibilities. It means to best be served by "trade, not aid"
us,
too, that we should analyze and that reducing our tariff bar¬
riers would accomplish this. This
our situation carefully to see that
has a persuasive air, of
our footing is certain and sound.
course, for
Perhaps the need for critical self- obviously trade
is a
desirable
on

examination is in itself

one

of the

strongest responsibilities of lead¬

ership, for

no

one

is

ahead

#e

can

take

that

so far
anything

ever

entirely for granted.
So, I have found myself asking
time
and
again: "Why a^e we
leaders?"

What are the qualities
given the United States

that have

and aid is not.

process

might

be

said

for

The

other

same

expres¬

sions that have become popular if
not too clear.
a

lot

about

We hear in Europe
so-called "dollar

the

gap," which may or may not be
a valid justification for a
helping
hand.
of

us

I

am

here

sure

there are many

today

who

have

ex¬

its dominant place in the world of

perienced

today?

personal lives from time to time.

Obviously,
most

our

importantly from our in¬
strength, from our capac¬

ity to produce. For the real an¬
however, we must look
deeper, for we have no monopoly
swer,

on

the

means

of

production or on
the inventive brains, the resource¬
fulness
of

a

or

I

position results

dustrial

other human attributes

people. But what

we

do have

have

»An

address

to

in-

by Mr. du Pent before
the Annual Meeting of the Virginia State
Chamber of Commerce, Richmond, Va.,

April ft, 1854.




only

domestic

our

a' good

are

when

our

cus-

consumer

purchasing power is high.
Unfortuately, this essential fact
largely overlooked in the
type
of
tariff

discussion.
fortunate
tance

I

think

is

it

an

un-

omission, for its impor-r

should

be

clear.

In

1760^

David

Hume, the economist, said:
"I pray for flourishing commerce
in

Germany, Italy, France, and
all of Europe." I think today that
in

"Germany, Italy,
France, and all of Europe" might
everyone

its

absence, their

ficulties

would

intention,

borne

be

consideration
is

the

no

arise

to

This

difficult

have
the

little

inclination

confusion.

the tariff

largely

The

question, it
one

see

it

the

location

of
our

I
to

with

to me,

and

appear,
to

defend

are

to

ourselves.

our

fore,

whatever

tariff

for

tion
It

arsenal

Pohcy

vision

it in

terms of

the

cut

is

is

to

na-

little

in

in

the

was

organic
of

time

virtually
capacity and
was

experience

entire

the

of these

other

until
There

1915,

Germany

source

many

up

technical

able

United

availStates,

not until necessity led this

toward establishment of
organic chemicals industry
in 1916 that we even began to be
self-sufficient in drugs, dyes,
rubber chemicals, and other needs,
country

its

own

After

World

ufacture

resumed.

The

German

producers could produce at lower

cost,

to

be

structure
than

sure,

for

then

even

their

wage

far lower

was

The American

ours.

manu-

facturers

were able to keep going
because
President Wilson
the Congress believed their

only
and

survival to be in the national interest.

when

off

nation

a

from

the

at

sources

?e Confederate ^tates
unbalanced

u

1860

had

omy

as

as

an

It

granted enough tariff
to
keep the foreign
makers from underselling Amerifirms

can

and

putting

them

out

existed

anywhere

in

the

world, exchanging its agricultural
products for goods manufactured
elsewhere.
devotion

Thi

to

emphasized

in

trade
the

had

been

Confederate

Constitution, but there was a large
body of feeling that retarding the
development of industry would be
disastrous. „The events of the war
proved that those who had advocated

domestic

a

industry

were

Theoretically,
like

it

had

seemed

good economics to exchange

cotton

and

tobacco

for

manufactured goods from abroad.
Actually,

dependence

plied

tighter

a

which

on'foreign

squeeze

than

any

troons

ever

en-

Southern

teriais

that

sources ap-

the

field.

And, as
strategic ma-

the

proved

most

scarce.

After the blockade became effec-

tive,

for example, history shows
that quinine which cost less than
$3.00

War

II

technical

the

know-how

to

produce our own medicinals, dyes,
other organic materials, includ-

or

ing

such

vital

picric acid

or

military items

as

toluol. Without the

could

tial

ounce

Bahamas

and

education

re¬

search,
and
if you wanted / to
study advanced chemistry or

medicine,
Berlin.
54

went to Vienna or
1919, there were only

you

In

doctor's

awarded

chemistry
universi¬

in

degrees

American

by

Today, thanks to a flourish¬
ing industry, this has increased to
ties.

better than 600

Yet
for

a

year.

nological

in other
world. Other coun¬
devoting much atten¬

developments

parts of the
tries too

enough,

ahead of tech¬

must keep

we

not

is

this

even

are

tion to their manpower resources.
From

the Soviet
large-scale
program in the physical sciences
and egineering, and some observ¬
all

accounts,

Union is conducting a

believe

ers

that

of

number

the

technical

in, Russian

graduates

schools is greater than or own.

Just

what
fill

to

use

methods

their

Soviets

the

requirements in

this field I don't know.

Under otflf

this

technology

and

well.

as

war

We

the

children.

statistics

along,

we

industry second to
to

is

power

linked

with

had

a

chemical
We

were
our-

none.

selves and for the rest of the free

WOrld, for the research
by

programs

industry

the

industrial

expansion.
Britain is producing
only a third the number of engi¬
neers,

in proportion to population,,

is the United States.

as

American industry today is the

reservoir of this indis¬
pensable pool of talent. In pro¬

produce enough for

instituted

own

look at

principal

before it started,

came

here,

our

We need only to

Fortunately, it didn't happen duction
technology,
that way. By the time World War
from
the

jj

of

futures

Great Britain's shackled economy
to see how closely technical man¬

have lost the

would

with

dealing
with

had

stands

alone.

In

distinct

as

purely

scientific, j it

the

field

of

re¬

search, there are, of course, many
very able people in the universi¬
ties

who

form

the

scientific

thought.

search

hard

core

of

also

is

Important

re¬

being done by or
highly successful.
When financed by various government
supplies were shut off, we bodies. But the American indus¬
ready to go with a synthetic trial establishment has become so-

pr0ved
rubber
were

that made

us

the

independent of the

Japanese.

chutes

was

over

When silk for
shut

off,

para-

we

were

ready with nylon
T

»

.

.

,

®'.Yes',w®
.s ,°.

number

1I",,!orld ^ar
L

j

ha„ to salvage th.e dr,'P
gas companies to eke

out,the ™eaS^ supply-and the

c°st was $5 to.a gallon'In Wor d
War "> w?. had ourown supply
and we paid about 30 cents Or I
is

used in makinf. P°wder as, wel1
as
it is in anti-freeze and
any

number of chemical processes. Up
to 1925, methanol was made only

13aa'

of

professional research staffs of pri¬
industrial laboratories now
over

timated

?U J1 0.

!

er

years;

the largest employ¬
scientific; personnel.
The
now

vate
.

J* me glve T"

p

research-conscious in recent

by that it is

was maue omy

f.r?m the dlstlllatlon of wood' and
this
country's entire
7,000,000 gallons or

output
so

a

was

year.

T.oda-y* aven on peacne"ToonChf'
^
'
use
150,000,000 gal-

l956:y

70,000, and it is

will

The

exceed

es¬

135,000

in

research

budget of
American industry now approaches
$1 billion a year. It is here that
technology develops and our

our

scientists

find

their

chance

tcr

meet

new
challenges. It should be
obvious that this vital element in
our
national
strength would be

seriously

injured

which diminishes

by
our

anything

own

indus¬

trial opportunities.

The

have

tariff

said,

a

controversy

is, as F
complicated subject
ground for de¬

with considerable

bate

as

to

terms. But

both

one

principles

and

point is simple and

clear:

nothing must be allowed to
handicap or impede the develops

a year*
ment
of those industries
which
1 cite these instances to show are essential to the national secu¬
that we have created an industry rity and the national defense. 1
.

No American manufacturer can
contend that the tariff should be

employed
or

to

protect

disproportionate

inefficiency
prices.

It

is

had succumbed to the theory only on those»
products1" where
alwavs in short supply and that a slightly lower price, based
wage rates are a major factor In
be obtained only at a
heavy ^ much lower wa8e rates> should the cost or where the material
upon the treasury.
Essen- prevail without regard to national has a strategic
importance

Shoes,
were

of

personnel, we would have
lagged far behind in other fields

have it today if, in the early '20's,

the

were

winning

scientific

in

degrees

baseball
Germany led the world

than

pitchers.

have
caught us
but
plants, the facilities,

in Richmond

an

in

advanced

scarcer

not

would
the

in this country that is a most
essential element in the national
security. And I doubt if we would

ounce

with

own
system, in the simplest of
terms, we can do it only by offer¬
ing our young men opportunities
had taken the position then that,
if the Germans could make or- fqr profitable employment.
Only
an
expanding, flourishing indus¬
ganic chemicals cheaper than we
could, they should get the pref- try, with the prospects of stable
erence.
The
American
sources jobs and steady advancement, can
would have withered away. World provide the incentive, for we are

hard to get at any price.

an

World

before

days

Let's suppose that this country

might mention methanol which

right.

the

I, when we made few of our
own chemicals, American chemists
were relatively rare, and chemists

of the business,

South's traditional

free

In

War

protection

in Malayan plantations taken

econ-

field.

War

I, when this
new American industry was just
getting on its feet, German man-

abie

of essential materials and has littie capacity of its own to fill the

more

actually

pro-

telling, example of

happens

war

drain

need,

about

include

to me that the history
City of Richmond provides

ugr.iru'
what

sighted tend to miss the fine print
in front of their
eyes in favor of
the long view up the
valley.
we

decided

is

seems

of the

far-

What

There-

the security of the
and military.

$1,200

self-interest:

intact.

must

must

we

industrial

was

near¬

And, if we

ourselves,

keep

and

The

com-

must stand ready

we

defend

cost

eyes.

is

the

come

for

manufacturing

It

to

late as

as

case,

World War I.

nucleus

on

the

of

peace

have

in

trained

all

and

again

ever

but hardly realistic, beunfortunately, aggressors do

We

seat

as

chemicals

no

con-

situation

a

principal

well

as

the

was

the

forting,

depending

our

see

add

seems

of optics.'

differently,

sighted tend to

to

trouble

a

that
was

to

to meet both peacewartime
emergencies.

and

cause

was

controversy.
It is
subject at best, and

the

would

or

trade

Air

like

us

overseas

of

assumption

always, it

tariff

articles

without

to presume

seems

break

in

ques-

formance, and that a corps of
scientifically trained people is as
vital as a corps of artillery or an

Force wing.
What is not so
obvious, perhaps, is that both
technology and technical man¬
which virtually all of the drugs power are dependent upon indus¬
and medicinals like aspirin, Novo- trial opportunities. This is par¬
cain, the sulfas and other vital ticularly true of the
chemical

of

any

template, today,

security,

discussion

in

this

of

aggressor will

world.

fact

mind

tariff

question

between nations
that

in

the

of

the

of

-

significant

more

must

Much

increased

1

But.the
that

dif-

own

be

greatly.

countered

narrow

dedication

tomer

however,

devotion

a

dollar gap in our own

no

condition of

and

We

economy.

debating the specific issues of

of

is

a

something of which we find
very
little in Europe today—a

is

ties rise and fall with

3

one

everyone

ish terms, but the more responsi¬

ble,

purchases of European commodi-

tion

authority.
In the complex and
tightly integrated world of today,
world of nations and the extent however, it seems that there is no
to
which American industrial segment of society that is not, in
some way or
another, affected by
activity might be affected by na¬
on

prosperity here.
in the present
military situation
is obvious, and we can fulfill our
responsibilities only when we are
economically strong.
Commercially, it must be remembered our

States.

time, I suppose,
international relationships

could

haps the one that interests me
greatly is the debate over the
place of the United States in the

free

everyone.

when

to have developed rapidly
during the time I was away. Per¬

policy
eign trade.

stronger

our

for in

of

United

matter

a

There

appear

tional

need for
Our position

even

have prayers for flourishing
commerce
in the United States,

greater than the

no

of

imum is

matters

of

secu¬

Keeping that strength at its

problems it faces in these event¬
ful

strength

can

strength

at
this
and the

closely

the

Free World

the

So,

to date, I find

up

the

an

black-and-white

U. S. Strongest Link in

any

bringing myself

threatens

other

a

has been

per¬

weakens

in
a
Conceding that
stake in the prosperity
nations, other nations

to

de¬

be

its

well

few weeks

a

that

States

is

as

survival,

insure

prosperity

so

rity of all the free world.

little

perhaps as good
to justify a pe¬
riodic stay with the routine tasks.
After reading the papers and
reason

and

personal

It should

anything

United

Pont

I

different than it did

a

basic

as

look at things today seems a

back,

obvious

fectly clear to everyone in Europe,
it should be to everyone here,

entirely fresh
viewpoint. The
perspecUve
with

Europe's

strength.

our

me

by

pends upon keeping alive those
qualities that are responsible for

however, with
to

of

it is some¬
simply the

and y

and

have

have

to

do

world.

we

place of leadership,
to our
own
and

our

important

I

broadcasts.

freedom

must

in

times,

50

Would

time

troubled

the seeds of

—

on

Extremities

candles

9,000%

period; hides
5,000%, and

same

goods

The fact is that,

security

right

more

extreme

by

big issue, it seems to me,
one
of tariffs, high, meor low,
but of what this

not

country

initiative.

the

tune

Our

ogy, our "wealth" as
times called, are all
fruits
of
the
more

magazines and
to

Americans.

gained
position

the

leather

from

dium,

assured
as taken

national

side.

is

signs of strength—our industrial
potential, our advanced technol¬

world
for

of

matter

an

be

can

and

Thursday, April 15, 1854

...

t )■

Nails increased
over

pute.
The

up

dividual

con¬

to examine

us

1865.

price

simply
muddy up the waters in between,
making it difficult to resolve or
even
to identify the area of dis-

national
security, and cites adverse situation that would face U. S.,
if we became dependent on foreign chemical products. Con¬
cludes "nothing must be allowed to impede development of
those industries that are essential to national security."
the

that

taking

sufficiency in our industrial capacity, and warns of danger of
trading freedom for free trade. Points out value of an adequate

outside

little

either

Executive of leading American chemical concern, discussing
and its problems, stresses need of self-

been

permit

requirements at home. There

is

the world situation

have

bi-focal

of

both world needs and the immedi-

By HENRY B. du PONT*

I

will

ate

Vice-President, E. I. du Pont de Nemours & Company

industry in building

through the
lenses

scene

quality

which

Hamper
Oar Chemical Industry

and well balanced chemical

at -this

finest

<

blankets,

civilian

and

articles

ordnance

were

even

we

needs.

that

degree of protection is nec¬
Everyone knows that modern essary..-To imperil our
position
A bag of refined salt that cost warfare is as
dependent upon tech- through the plea of lower costs of
$1.00 in 1860 brought $115 in nology as it is upon, human per¬ the foreign producer is a
some

difficult and higher priced.

folljf

Number 5316

Volume 179

with the threat of

..

The Commercial and Financial Chronicle

.

tragic after¬

a

If

its

to

wages

ridiculous

most

ammunition, and

atomic

even our

from the Russians whose

weapons

prices, if they should reflect the
wages
paid their workers, are
surely the lowest we could find.
National

security must

auctioned

There

quarrel

with the objective of
allies in any way con¬

our

to

our

interests.

own

reasonable,

and

bidder.

our

sistent with
a

weaken

our own

our

ourselves. I

to

excellent

example

tunately it just begins to outline

such

of

is

course,

organics,

those

an

chemicals

and

are

because

within,
these
three
the surplus/deficiency

widely

Therefore,
categories,

the

chemical.

no

with

question

supply of water to meet
most any ordinary plant require¬

the

States

chemical

North

West

as

market

a

products,

the

for

for

stated:

publish

"While

a

North

Central

Middle

Atlantic

States.

the

on

same

subject.

"An example would be the fact
that although the inorganic chem¬

this

preliminary anal¬
ysis of the chemical industry in
West

done

The author of this paper will soon

Wessel

Mr.

been

the

is

area.

from,
all

"Another
that

example

local

ical

States

reasonable picture for 11

industry shows a net defici¬
there is actually a surplus of

ency,

15

sales.

to

to

In

20%. of

the

this

con¬

present

chemical

industry in

the West North Central States."

area.

of

industries

chemicals

to

company

nection, then, it is well to consider

On the other hand, there

deficiency of sulphuric acid

a

amount

chemicals

of

chemical

one

another

a

manufactured within the

shipments

company

West

the

fact

export

With

to

manufacture of cellophane.

Carroll, Kirchner

(Special to The Financial Chronicle)

other markets is that the

plasticsEngineering Chemistry," Volume producing industry shows only a
small deficiency in the area, due
45, page 529, March, 1953, 'Con¬
sumption of Inorgainic Chemicals' to the fact that there is a large

ment."

Concerning

to

This has

by
Riley and Miller, in "Industrial and

the

Central

respect

investigated
the individual

about to

or

in

States, and there is
goodly amount of
this manufacture is exported from
doubt that

no

taries there would

be

manufactured

composed
of
divergent
subgroups.

groups

value must be further

of

pounds manufactured
be

North Central

13

DENVER,
Hauser

Colo.

has

been

—

Wayne

added

B.
the

to

staff
of
Carroll,
Kirchner
&
Jaquith, Inc., Patterson Building.
•

Actu¬

ally there is

a shortage of other
plastic materials, and a consider¬
able amount of the cellophane is
exported from the area.

With J. Clayton Flax
(Special

to

The

Financial

SPRINGFIELD,

Chronicle)

Mass. —David

J. Manheim has become associated

"Chemical plants themselves are

with J. Clayton Flax
Main Street.

good customers for other chemical

& Co.,

1562

or

confident that

am

which, of

for

miscellaneous

tegically and particularly on one
of the major rivers or its tribu¬

shows

no

situation

tne

limiting material in

essential requirement of any in¬
dustry is the water supply. How¬
ever, if plants are located stra¬

the

is

only

area

and

allies

our

this

But

resources

defenses

own

either

answer,

It

humanitarian,

a

business-like purpose.

a

deplete

be

not

lowest

bargains in the safe¬
freedom. I have

no

are

helping

the

to

guarding of

is

an

"The

the lure of cheap

follow

we

lengths, we should by all means
buy cur heavy armament, our

no

is

special deposits.

math.

(1673)

out of 14 chemical groups,

ammonia

unfor¬

and

ammonia

com¬

plants. The inter-plant and inter¬

our

people will not let this happen.
t"-" " a

when

there

are

to watch and

no

none

to watch them.
at

I

ramparts
of

am

'

v

■■ v

g w- m •

IS fiuU

left

on

mmmm

;

hand

poor

hand

us
a

;■

\✓

Our industrial strength must be
sufficiently robust to meet the
-challenge of any enemy. Unless
it is, we may reach that sorry day

if we are going
I would like to have
else to put alongside
but,

slogans,

to have one,

something
of

"Trade
Not Aid."
Perhaps
"Liberty—Not Slavery," or "Hope
—Not Despair," or, most of all,
—

"Life—Not Death."

West North Central
States Area Attractive
For Chemical
P.' D.
and

Strickler,

Industry

C.

V.

Holland

Henry E. Wessel discuss the

West

North

Central

States

for expansion and

area

ment in

a

as

develop¬

symposinm of the Divi¬

sion of Chemical

Economics

Marketing and

the

at

125th Annual

i

i

Meeting of the American Chemv

ical Society.

:

The Division of Chemical Mar¬

keting

and

American

March

Economics

of

the

Chemical
held

24

a

Society
symposium

on
on

FOR
C. V. Holland

the

.

Henry

of

resources

the

E.

Wessel

West

Central States at Kansas

He's

North

City,

as a

engaged in the most extensive investiga¬

feature of the 125th Annual Meet¬

ing of the Society, and among1 the
participants were P. D. Strickler

on

and, C. V. Holland of the Spencer

duce

Company,

Pittsburgh,

greater

Pa., and Henry L'. Wessel of the

Engineering Economics Section of
the-Midwest

Research

paper

Institute,

City, Mo.
In pointing out the

resources

the West North Central
an

area

for

States

in

and

;Strickler

stated:

cluding.

mills, petroleum refineries, glass plants,

industry

one

of

States,

Central

mineral

At Mathieson,

in¬
to

materials

raw

may

for example, research leading

continuous

preparation

limestone,1 salt, clays, barite, and

producers

well

gravel

are

sufficient to

eminently attractive to indus¬
tries, particularly the chemical
Industry.
to

the

raw

chlorine dioxide
used in

mate¬

rials ^mentioned there are specific
cases

.iniwhich

vidual raw

deposits

materials

attract

through research, the im¬

grows

of the chemist, the

as to

ing contribution to

ing,

paper

the makers of household

more

superbleaching; this

more

pulp and

paper

manufacture

Baltimore 3,

means
.•/'
•.

1

\

K»ih

•

i.

^

i

'

II:

'f

li:

•

...

"

r

;




f«r.
f«r.:

in the

effective

T't;J

i..

.

■

-

v.,

..

•••

..a

AGRICULTURAL SPECIALTIES * ETHYLENE OXIDE AND

>a

ii m

;•<-il-'-u

^

.x

V.I

.•

-•

,'q

^

■

sv

.

')f:.

V'*
r>t

:

.

■

.

t

ii

t<:• U-J

*.r

S

2056A

v

GLYCOLS.* DR.yGS>.
.

r.%. i
rdvii

more

CORPORATION

v,

-.1 <\
;

are

more

Maryland;

•

strategically vlocated industry'.'
The tripoli deposit and plant for

i

and

efficient manufactur¬

productive farming,

MATHIESON CHEMICAL

process

■iki

a

.}'(I

engineer, the
more

healing.

of'- indi¬

may

industry

bleach. Mathieson has also taken the lead in

be

addition

producers using large quantities of

vanguard of the company's constantly expand¬

of hypochlorite

significance to textile and

as

to

refiners, chemical

laboratory technician becomes

bleach is of

"In

As

portance

have important

petroleum, natural
gaSiriron,, dead, manganese, zinc,
and

among

pronounced. At Mathieson, they

the

resources

savings

develop¬

of soda ash will lead

helps cut waste

inefficiency. And, often, the improvements

such-as ' cqal,

sand

and paper

storage

soda ash in solution.

:•

natural

North

wet

considerable

economically, and in

applications in others.

and ' Holland

■

"The
West

in

ment

volume. In chemical plants, pulp and

that benefit

expansion and devel¬

Mathieson's engineering

too,

as

opment of the chemical industry,
Messrs.

more

and textile mills his research

Kansas

Then,

in industrial laboratories for ways to pro¬

things better,

brightness without loss of strength.

greater

tion of all time. It's the constant search carried

Chemical

INDUSTRY

v

♦.

RHApACJEqilCAU•

%u-(A-is.<•

f - 1
*

kyr.

t

V
,

■

i

•>

14

The Commercial and Financial Chronicle

(1674)

the numerous pension
both private and public,
social security, will con¬

Again,

01 the Business Level

such

Frorh

Washington
Ahead of the News

.

|

Though

f,
I

into a deep depression. Maintains stock market will not col¬
lapse as in 1929, and that there are "built-in" stabilizers
against severe losses from sudden drops in commodity prices.
Discusses question of excessive inventories, and indicates there

t

value of
tion

and political complexities that
Mr. Benner finds
for thinking that we will slide suddenly

economic

diminution in

"cheap money"

as

one

may

choose to call it, the general

level

of

as

business

been

activity

intertwined

with

possible to make

forecast

any

ex¬

cept for very brief periods ahead.

of

summer

No Sudden Slide into

To

year.

of course, been

But in spite
ties, I do wish
ally that there
thinking that
slide suddenly

greater

in

sion.

of

Depression

a

never

date

the

total

decline

has

not been very

It has,

severe.

lines

some

business

to state dogmatic¬

is little

for

going to
deep depres¬
depressions
have

we

are

into

Severe'

reason

a

occurred in this country
unless they were preceded by pe¬

for

—

of these uncertain¬

instance, dur¬

riods

able

over-expansion, wild speculation
and a mounting volume Of debt in

goods

—

than in others.

Industrial production as
measured

characterized

been

b y

some

capacity to
there may have

While

support.

the Federal Reserve Board's index

excessive

of the people's

excess

Claude L. Benner

by

during the last few years
little over-expansion in cer-

of

physical production, is cur- tain lines, there has been no specrently off about 10% from its ulation of any serious dimensions
mid-year peak of last year, while and the total volume of debt outthe gross national product, that is standing is modest in relation to
the value of all goods and services the size of the national income,
bought and sold, is down from its
One can be certain, therefore,
high by about 4%..
that the stock market is not going
While

the

latest

figures

that the down-trend has

stopped, the rate of decline
to have

materially slowed

ing the

last

few

show

to

experience

collapse

a

piot been did in the fall of 1929,
seems

up

dur-

This

weeks.

is

particularly true in the amount of

like

it

nor are our

financial institutions going to fail

the

they did in 1932-33/No

way

doubt

in

certain

sectors

of

not be behind

any

in

is

business

There
bilities
at

us

this

a

be

not
whether

may

'

us.

three

are

in

Everyone,
wondering
spring up-turn

now

not

or

this

in

<

distinct

The

for great

cause

worry,

how-

ever> primarily because a considfacing erahle proportion of the mortpessi- §a§e debt, the type which has
ppssi-

connection

time.

the

most

the

of the

rest

first

year" to set forth
the

of

business for

of

level

some

which

factors

the

declines

since

that

business
the

of

for

outlook

the

to

merely

to

were

the

war.

The

found

outbreak

by

the

which

is

one

will

that

the

start

decline

ing

we

summer

the

in

fall

Built-in Stabilizers

put

were

men

capacity

business has pretty much

run

its course and that there will be a
modest up-turn in the next month
or two
to be followed

period
the

of

by a real
expanding business in
1

fall.

Let

me

say

ning that it is not my purpose to
attempt to tell you which one of
these possibilities I think is
going
te

come

to

pass.

Speaking quite

honestly

and frankly, I do not
know how to gather material sufdcient in breadth and scope that

justifies

anyone

statement

at

making

this

time

a

definite

in

regard
to how long he thinks the business
decline

will

continue, how far its

volume may drop, and when it is
I kely once more to resume its

"ipward

movement.; There are so
riany unknowns
in the present
situation, the political condition

sudden

drop in

'exterd:

Pudt-m stability

corn-

this

m our economy

18

°verloolPd^nemP*°ym.ent Compensa¬
l10/1 System alone is backed up by
«

Ynd of aIm.ost $9 bllllon.
Thls. system provides payments
ian&lnS up to 26 weeks for emPl°yees tbat are laid off. It will
no doubt Pr?vide a material suppo£,^_
retail sales,
The farm Prlce support program
llkewise exerts a stabilizing in2,, .r

.

fluence by disqouraging disorderly
marketing and slashing of farm
commodities. While the taxpayer
no doubt has to pay the cost, the
farmers'

income

and

consequent

aiidr!*s hyt the *?e1ner ao
!£r' Mortgage Bank- Purchasing power is supported
Meeting of
*u„„nL,.
Association
of
America, New York
ereby. Such price Collapses Oil

r

^astern
•?r#

City, April 12, 1954.
!>*

a

"




o

wheat,

cotton,
,

■

and

n„

other

farm
*

:

far for it to

so

program
he

one

one

of sheer

he wants.

doesn't

pass

enough of such

change in Con¬

a

at this session the sort of agricultural

But I doubt seriously that Congress will pass
This

want.

means

that

the

of

as

next

crop

year

factories

entered

doubt there

will have

Women

hours

lengthened.

of

This

labor

were

inevitably

are

come

enough votes to take this affirmative step.

question then arises as to what effect this will have upon
Republican candidates for Congress who have to have farm votes.
probably not one who relishes it. But, on the other hand,

There is

re¬

there

seems

be

to

an

sulted in the tremendous increase

in

which

output

enabled

us

to

fight the war, aid our allies and
not too severely lower our stand¬
ard of living.
Financing the
increase in
of

the

the

war led to
purchasing

people. Liquid

a

huge

for

such

nearly

five

was

and

years

goods

consumer

as

hard to obtain. The

people wanted to spend their li¬
quid assets for these scarce goods
and

almost

the

before

soldiers

had been disbanded factories

humming
them out

in
as

an

fast

were

attempt to turn
possible. Soon

as

the times that they

thought a de¬
pression was likely and even took
such steps to prevent it as to en¬
courage
shorter hours of work,
higher wages and cheaper credit

officeholder to talk frankly with them.
The

to

The

economic

fact

of

the

so

he

of

vocal.

challenge them.

far from

the

against him seem
right into their camps
that his efforts have been

groups

pressure

Benson has walked

The indications

are

fruitless.

Undoubtedly, one of the chief reasons for the smoother road
to be travelling is that he has finally got rid of about all

seems

of the New Dealers in his ramified agency.
His reluctance to do
this was an understandable weakness. He thought he could con¬

vince them of the soundness of his ideas just as he has been
trying
to do with the farmers. His subordinates, however, could not be
convinced. Their job, in fact, was to remain completely uncon¬

vinced and to wreck him.

Unschooled in the intrigue of Washing¬
ton, the Secretary couldn't understand! this.
It took a lot of
persuasion on the part of Republican members of Congress for

him to

see

the

light.

>

It would be most difficult for the layman to

comprehend the
industry that is built up around the farm bureaucracy. There
probably more than 30 pressure groups, "national organiza¬
tions," etc., that have a finger in the agricultural pie. For the

vast
are

most part, their dues paying memberships, the livelihoods of the
officers, profitable careers, are dependent upon the multiplicity of
or the bureaucratic maze that has been built up over
the past 20 years, and the Department of Agriculture was not an

confusion,
organ

of simplicity

aside

from

any
are

the

before that—there

even

tillers

of

the

are

a

soil

themselves,
change in the agricultural existing order.

not

lot of influences,

who

don't

want

Many industries

without sin in this respect.

Benson has had to go beyond the "vested interests" and
carry

his message
basic

vocal

more

not to be

now

at the very time when just the
opposite of these things was called

for.

increasing number who do not fear it.

himself, has been working the farm country hard
trying to sell his ideas.
From the open hostility which first
greeted him, he has, of late, been getting very attentive audiences.
In the first place, it must be a novel experience for a political
Benson,

power

assets such

Benson

that far.

The

industry in large numbers

the

and

built.

were

price program which Congress voted a few years ago
but the effective date of which has been postponed from time to

and

I refer to what is corn- a period of postwar inflation and
mordy called "built-in stabilizers" rising prices was with us. It is
sucb as guarantees against com- somewhat amusing now to look
Ptet© loss of income from unem- back and see that those in au¬
Pl°vment or from severe losses on' thority so misread the signs of

account of

gress

Plant

utilized

economy.

at the very begin-

stubbornness, is beginning to change to

I doubt that there has been

,

at
Soon these

work.

to

fully

was

clothing

and perhaps level off
after the new year

or

his

admiration.

operating

»

Another reason for thinking
tbe P.resent business decline
at a figure somewhat below
pres*s n°t going to develop into a
ent levels.
The third
possibility, severe depression is the degree to
and the one held by the
optimists, which bulwarks against depresis the possibility that the decline si°n
have been .built into our
in

However,, if I read the signs aright, the feeling of sympathy
Secretary, or in many instances, the feeling of impatience

toward

time because of political timidity, would become law.
It will be¬
come
law unless Congress takes action again to postpone it.
I

plants

m,any

even

«r,i;w

always, by

or

;

with

only partial capacity.

made

likely to happen,

/

the flexible

in

mid-summer

But you can't get votes by just being honest,

country with a huge
reservior of unemployed men and

"snowballing"

have been experiencing
of
last year
will continue throughout the com-

since

"

serious student of the farm problem but that politi¬
At a time when farm prices were falling

for the

hostilities

of

this

had the largest expansion during as cash, bank deposits and war
the Past decade, is now supported bonds were in ample supply. At
and will not stop until we eventhe Federal Government and, the same time, the war created
tually reach a deep depression 110 matter what takes place, a col- scarcities of almost all kinds of
perhaps some time next year.i The laPse in this field similar to what goods. Houses were in short sup¬
second is that the modest decline occurred
in the thirties is not ply, automobiles had not been
mistic

business

V

rest

assess

made

.

impractical.

was music to the Democrats' ears; to the Republicans it
political heresy. It would be bad enough to try to effect such
changes in an off-year; to attempt them in an election year was
unthinkable. He was honest, yes; and to most thinking minds he
was right.

the

demands

Carlisle Bargeron

unquestionably

This

the

phenomenal busi¬
ness
expansion which has taken
place since 1940. First, of course,

was

was

importance, I want
list the fundamental

for

he

a

was

being right.

attempting

that

and the Democrats were making hay by telling the farmers the
Republicans were responsible, Benson was doggedly insisting that
the high rigid supports had to go, that it was simply economically
impossible to maintain them.

relative

causes

been

.

year.

Without
their

has

genuine and

basis of certain assumptions about
the

the present 90% rigid support.
political impression of him all these

cally he

time.

on

Democrats.

of

months

accomplished, we then per¬
haps may be justified in drawing
tentative conclusions

Congress of his own party have
critically outspoken about him

light.

The

This

some

doctors

the

instead

responsible for the
tremendous
business
expansion
that took place in this country
during the past decade and a half.
Following this, I want to set forth
some of the causes, as I see them,
which led the upward movement
to stop about June of, last year
and which have been responsible
for

the

it but not him.

as

have the

mainly

were

new

making and
the major
part of the business decline may

accordingly;
whether

lesser

a

termine

our

economy debt has increased
too
rapidly for good economic health
and this increase contributed to
the inflation that took place since
the close of the war. No doubt
mortgage debt and consumer and
instalment credit stand at pretty
high levels. I do not deem them

unemployment and to
extent in that of sales.

for

the

and

man seems to be emerging in a
Not only is he the most stubbornly
honest man ever to come to official Washing¬
ton, he is coming to appear as the most amaz¬
ing. I wouldn't be surprised if in the end, in¬
stead of being ridden out of town on a polit¬
ical rail, he will attain his objective which is
to' set up a flexible price for farm products

will be useful as a
discussing "The
factors which will de¬

principal

of

about

new

•

Perhaps it

slowly politics, that it is practically im-

has

declin¬

ing since midlast

closely

so

Members

Business

Expansion

ailment

had told everybody else about

But

of

incurable

some

been

Background

of the whole world is so fluid and
uncertain and the state of business

had

this morning.

sales incentive, and favors reduc¬

it may

way

what

without

occur

ly to be with us in the days im¬
mediately ahead. But this is all
that I want to be dogmatic about

background
or

Practically ever since the Eisenhower/Administration has been
the Secretary of Agriculture, Ezra Taft Benson, has been
an object of sympathy; most of it
mocked, some of it genuine. A
password at political gatherings and among the cocktail set has
been that he certainly occupies a hot seat and
likely Will not be with us long.
It is as if he
in office,

therefore, one is justi¬
fied in forecasting that no sudden
severe business depression is like<-

mining factor in extent of business decline.

measured

By CARLISLE BARGERON

I think,

in

Irrespective of the

pur¬

fall in

effect of the

the

that would

income

it.

corporation income tax rather than reduced tax on
dividends.
Concludes consumers', state of mind may be deter¬

be

their

up

today can break as much as

omy

one-half

Questions

liquid assets.

consumer

keep

all, some economists estimate that
the built-in stability in our econ¬

make difficult forecasting of business trends,

no

and

ficiaries

chasing power irrespective of the
state of business activity. All in

President, Continental American Life Insurance Company
Wilmington, Delaware

has been

as

tinue to distribute money to bene¬

By CLAUDE L. BENNER*

reason

Thursday, April 15, 1954

.

products as occurred in the early
will not take place.

programs

there is little

.

thirties

Factors in Determination

stressing

.

directly to the farmers.

under the circumstances,

if he

were

It would be truly amazing,
to prevail.

But he may.

1

past 14 years, overriding and over¬

powering all other economic fac¬
tors, has been inflation.
lived in

an

era

continuously

since

of World War II.
a

It

the

appeared, for

making for inflation

had spent the greater part of their
force

and

supply and

that

the

costs,

the

price

Continued

money

level

on

(Special

outbreak

short time in 1949, that the prin¬

cipal forces

Mitchum, Tully Adds

We have

of inflation almost

were

page

44

LOS
W.v

to The Financial

ANGELES, Calif.—Homer

Wessendorf,

added

Chronicle)

to

the

has
been
of Mitchum,

Jr.,

staff

Tully & Co., 650 South Sprin?
Street, members of the Los An¬
geles Stock Exchange.
He was
previously with William R. Staats
&

Co.

Now With Sutro & Co.
(Special

SAN
Paul

Sutro

to

The

Financial

FRANCISCO,

Secor

is

&

Co.,

now

Chronicle)

Calif.

—

affiliated with

407

Montgomery

Street, members of the New York
and

San

Francisco

changes. He
Hannaford

&

was

Stock

Ex¬

previously with

Talbot.

-fa

Volume 179

Number 5316




..

.

.

i

j

w-v

v

**«**»«*? **«•#

to

wu ft

n

•

■r»

'

ftf#M"

(1675)

The Commercial and Financial Chronicle

19

K'

for greatest

knock-free

power—

result of the world's most
advanced

refining developments!

Improves Every Car's PerformanceIncreases Gas

Mileage, too!
Combats gum

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tion

chemical

of

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by

Boosts

bring motorists

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every

benefits:

Combined with top octane,

pound creates
-New

car's performance!

and controls

this trouble.
Corrects

;■»

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vapor

lock-the greatest

protection against engine troubles

ever

offered

spark plug misfiring due to

Compound increases the effective life of spark
up

Mobil Power Com¬

new

in any gasoline.

/ '

injurious combustion deposits. Mobil Power

plugs

entirely

anti-knock power-faster starting

V protection

glowing particles responsible for

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Mobilgas special—double powered!

You get top

pre-igni.tion ping-Mobil Powef

Compound's amazing additive, RT 125, quells

automatic chokes

Mobil Power Com¬

pound additive, riew RT 200, reduces engine-

to 25% —increases gas

power up

mileage-improves

new

causes

formed gum-cuts waste of fuel.

Socony-Vacuum-has been combined with top
octane to

which

and other parts to stick.

to 3 times.

v

Controls

stalling due to icing of the carbu¬
retor; No other gasoline offers the protection
of glymonate, unique de-icing additive
developed by Socony-Vacuum.

,

SOCONY-VACUUM OIL CO.,.INC., and Affiliates: MAGNOLIA PETROLEUM CO., GENERAL

^Laboratory
tests

in

gines

engine
25%

controlled

passenger

showed
power

using

SOCIAL

as

pared to cdAventional
mium

en¬

in

output up to

when

Mobilgas

car

increases

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PETROLEUM CORP.

New
com¬
pre¬

Mobilgas
SOCONY-VACUUM

*
-

Now

at

■

.•

t

y
%

Mobilgas Dealers

h

The Commercial and Financial Chronicle

(1676)

16

of

ance

engendered, by; the

By WALLACE STREETE

Despite the technically cor¬ the climb has
rect, but relatively unimpor¬

tant, fact that the industrials action of
were
a

able to

nudge their high
back up the 1929

rung or so

nature

And

Rails

various
issues took turns at trying to
rekindle a more vigorous ad¬
as

Also

one

of

cash.

if

if

if

session

and, while the

the most active for

was

the day—role it
assumes—there

last
if

if

frequently
rush

no

was

Imply Caution

Prominent

responsible for some

of the caution around was the

fact that the rails were find¬

Among the uranium

Metals

strength and

on

hope of those who had

if

anticipated

High for Oils

News

if

if

which would make it

issue

the staunchest the company's larger market for the stock. And since then

even

technical

a

bit overdue.

a

along for half a year

and

of its time

backing and filling

least

at

if

ladder, the stock market this
week spent most

been

seems

the

transactions since it sold a the expected flood of cash
proponents of the argument
undoubtedly would get great good share of its investments sales, which carry votes until
steady for comfort out of even a minor last year and retired to the next Monday, turned out to
sidelines amply supplied with be a mere trickle. This is the
now, a re¬ corroborative signal.

months

some seven

laid

rumors*

refusal of the rails heavy buying to Atlas Corp.

adamant
to follow
now.

confirmed

Thursday, April 15, 1954

.

being largely wishful company's tax loss credit. Un¬ initial

Thinking

...AND YOU

..

com¬

panies, Vanadium Corp. and
Molybdenum took

Climax

some lively mar¬
buying by both parties to
battle; but it seems to be

ket
the

slim one fully as disappoint¬
sprinting but all too ing as the regular way trading
were the so-called "uranium"
often
gave
up
their gains which saw the issue slide
issues along with the standard
rather quickly in subsequent from 26 to 21 when the ex¬
metals
and
a
rather good sessions for a
performance of pectation was widespread
sprinkling of oils, notably small net change. Vanadium that it would "have" to
go to
Standard of Jersey, Sinclair
particularly,
was
notorious 30 or better.
and
Texas Gulf Producing.
*
*
for years for being able to
*
General Motors, U. S. Steel,
gyrate wildly in even the
A newcomer to popularity
Union Carbide and National
dullest markets. But since the
at

new

highs

the week

on

a

turns at

of a chore to work
through their own
1954 high to provide the con¬
It was quite apparent that
firming signal that would re¬
moments of strength brought
assert
the
market's bullish
out a fair share of selling by
swing. The debates have been
those more interested at the
on
volume
was
American
Steel also forged to new high
uranium era, Vanadium had
moment
in protecting their lively over whether, for the
Potash class B which has been
first time in half a century, territory for the year.
taken on an air of respecta¬
profits. Partly this is due to
somewhat laggard in recent
the industrials could continue
These new high tabulations,
the
fact
that
the
list
has
bility, particularly since the months. iYom a random sale
on a bull movement of their
however, can be a bit mis¬ steel industry itself has lost or two
worked essentially to the 310
per session, it attracted
own
without the confirming
level which is all that a rather
leading. National Steel, for its ultra cyclical character some mild interest and
quick¬
large group of technicians en¬ help of rail strength. But such instance, was able to make since the end of World War ly forged to its best level
the 1954 list by crossing 50 II. But in the
visions for the present. Since a conclusion had the appearplay that fol¬ since it moved from the
vance.

❖

❖

*

ing it a bit
their way

which somewhat obscures the

Connecticut Brevities
The

fabricating

flume

Atwood

&

division
of
Manufacturing

tympany will be moved approxi¬
mately Oct. 1 from its present
quarters in Waterbury to a new
single-story building of 150,000
square
feet
to
be
erected
in
Thomaston. The new plant will
cost about $1,250,000 and will in¬
clude
air
conditioning and dif¬
fused fluorescent ceiling lights.
if

if

the

annual

meeting of Bridgeport Brass Com¬
pany
on
April 26 will vote ori
proposals to increase the author¬
ized
capital
stock,
amend
the
charter and grant stock options
to
certain
key employees.
The
presently authorized stock in the
amount of $25,000,000 will be in¬

creased to

There

$50,000,000 if approved.

presently outstanding
shares of $5 par s+ock.

are

1,203,362

$4,000,000 of 5V2%

vertible Subordinated Debentures,
due March

stock

bentures

Ees

stock of other

fabrics,

'.'ons

cover

Stockholders
Wire

up

Cable

S-

of

21,530 shares
"52

shares

five

with

the

March

12.

The

at

pur¬

93.3%
on

$10.50

of
a1

expiring
remaining 372
at

ufacturing

and

to

that

a

the

and

market

earnings

$3.53

1952.

building and the establish¬
copper

wire

drawing

department.

Armstrong

last

Rubber

I

year

share

per

in¬

Com-

were

Unfilled

$10,878,000
end

of

At the year-end notes pay¬

able to banks

were

this had been
000

$2,700,000, but

reduced

to

$2,200,-

by March 25, 1954.
*

if

*

its

common

basis with

a

share to

stock

a

a

share.

from

par

no

Exchange.

infrequent visitor to the

[The

all

worked

issue

down to the lowest

the

seen

one

stock

was

1948,

in

that

it

to

have

would

send

New York

Hartford

—

—

CO.

Exchange

New Haven

REctor 2-9377

JAckson 7-2669

be

certifi¬

cates in for exchange.

&

a

been

not

their

CHAS. W. SCRANTON

inactive
It

issue

showed

the

on

board.

on

22. But,

views
do

in

expressed

not

necessarily

coincide

time

with

this

at any:
of the

those

Chronicle.

They are presented
the author only.]

those of

as

time

unlike the major¬

the best since were 53 in 1947

Detroit Bond Club
Announces
Mich.

DETROIT,
of

nual

summer

Outing
The Bond

—

hold

Detroit will

Club

its

an¬

June 8th at
the Grosse lie Golf and Country
party

Club.

To 3e Guests at

Chase Bank Luncheon
Manuel

Arburua
of

will

the

be

Thursday

de

la

Miyar,.

Commerce

Minister

of Spain,
of honor on
luncheon at the

guest

at

a

Chase National Bank tendered by

J.

John

McCloy,

Chairman

and

three

able to surpass

1952. It also sat
peak year by
the couple of ap¬

entirely in

out the bull market

of

1946,

so

made so far this
year
might be considered
enough for a year's work al¬
ready.
pearances

Lull
For

if

if

in

the

Aircrafts

a

American
issue

-f

Can

is

another

trader's

delight
lately rather mundane. Its
once

a

last

good runup was when the
1952 split of 4-for-l was im-i

minent. It

was

a

bit of

a sur¬

aircrafts, the play prise,

at

de

continued

Pictures

would

neeessarily

And
over

want

to

highest.

and

Jose

If.
to

Aide

Ambassa¬

the

Sanpedro, Personal
Minister.

Cha^e officials at the luncheon,
addition

in
Mr.

to

Mr.

McCloy

and

Ebbott, will be Charles Cain,
and

Jr.

Edward

Vice-Presidents,

L.

Love,

Senior
W.

Alfred

and

Vice-President.

Barth,

First So. Inv. Adds
(Special to The Financial

why
pay

if

\

man

over

the $6

A.

York

Central

buying
regular

way

is

now

affiliated

/Southern
Investors
Corporation, Southwest First
Avenue.

Collins With H. Hentz
(Special to The Financial Chronicle)

MIAMI, Fla.—Frank M. Collins
become

if

The record date for

Bjork

First

with

Hentz

New

Chronicle)

BOYNTON BEACH, Fla.—Nor¬

has
•is

the

for anyone interested in
redeem the issue voting
in the proxy fight
centered on the passed quietly in the week's

premium

available to

Spanish

United

least

extremely active.
guessing game
12 cents

the

to

States; Jaime
Arguelles,
Under-secretary
for
Foreign Economy; Alejandro Suarez, Under-secretary for Industry,

..

RKO

Lequerica,

dor

if

if

but

the 1929 peak

point or so.

consequently, when it
temporarily came to life in a dull market
over. They were still volatile this week and forged to a new
enough to show some large high exceeding anything but
daily changes—either way— the 1929 best. It is one of
but with the split news out roughly half the components
on
the leaders already, and of the Dow industrial average
a
pause due in earnings re¬ that have yet to erase the
ports, the disposition seemed 1929 record peaks although
to be to convert paper profits the average has worked back
to cash.
to within some 70 points of
*
.*
a?
the
1929
reading, history's
i

seemed

someone

Teletype NH 194

to

lithium

way

price

This

1945.

since

American

properties.
article

week's

single sale price of ity of issues, by 1942 it had
broken through even the de¬
$1,332 a share was recorded.
In addition to other distinc¬ pression low to 21V£. On the
tions, the stock is probably top side, its best effort in 1937
and
the title-holder for the most was 71, in 1946 only 62

par

value of $12.50

Stockholders

notified

a

stated value of $12.50

'CONNECTICUT




New

a

Casualty

the

its participation in

on

South

if

,

Former Favorite

.,v.

was

Veeder-Root, Inc. has changed

Members New York Stock

SECURITIES

valid

Stock

York

*

~~
Primary Markets in

*

largely

sales all and 51 in 1950. W. T. Grant, Percy J. Ebbott, President.
Other guests will be Jose Felix
$2.88 and last year and skipped trading by comparison, this year was

$1.69 to $1.76, after

respectively.

necessary
The

that

$16,165,000

against $17,700,000 at the

The proceeds to¬
$350,000 Long Term

Loan
are
being used for
working capital and an expansion
and
improvement
program,
in¬
cluding a new 25,000 square foot

a

from

$21,306,000

Ordinance orders

Bank

ment., of

Colts Man¬
shows

Company

increased

1952

by the company.

gether with

*

a

rights

sold

were

or

ol'fcred

basis

share,

office

❖

Federal income taxes of

Plastic

Corporation

the

ohe-fo.

shares

30,003

The

chased
21

to

*

points.

casualty could
new high recorded by
CocaCola International Corp., the be Woolworth. In posting new
lows rather repeatedly, the
highest-priced item on the

upholstery
for the
velvets, for which the
operations are better when a

creased from
if

seven
if

The

marquisettes,

The annual report of

in

-

more

tape

if

!<!

*

sales

-

if

if

*

Much

This

suited.

empt' v)

cm

some

appeared for the first
Cheney
Brothers has
discon¬ time in a couple of months on speculative favorite for both
tinued
traders and the general pub¬
operations of its men's a
30-point improvement; and,
wear fabrics
division which pro¬
lic had shown a worsening
at $976 a share, was the high¬
duced neckwear, robes, mufflers
somewhat steadily.
and
sportswear materials.
Pro¬ est standing achieved by the pattern
duction facilities will be changed issue since 1950 when it soid From its 1929 peak of better
to increase production of special
for $1,004. The all-time peak than 103, it dropped in 1932

com/m

stock

metals, based

of

its 1952 best.

The

Moines, Iowa.
sit

cor-

"ons
in exchange for the
*y's
stock,
without
pre¬
rights.
The
proposed

opments,

of, de¬

share.

each

a

lagging by around half
dozen points from equalling

amortization for tax pur¬
of 45% of $835,454, cover¬
ing part of the cost of new fa¬
New
cilities to produce rubber tires at

company's

permit the
company
to
merge or consolidate with other
companies and to acquire prop¬

shares.

$22

year

would

pc

of

common

has recently received a
certificate
of
necessity
in
the
name
of a subsidiary for a five

fabrics and

or

basis

for

A

class

issue sold

same

clair is

company

The charter amendments proposed

er!", assets

into

the

on

The bonds are

1, 1974.

convertible

poses

if

Stockholders ;• at

of

publicly an
Con¬

sold

recently

pany

issue

lowed all the H-bomb devel¬ American

Exchange to the
Vanadium proved Big Board as well as the best
at 56 in 1951. U. S. Steel simi¬
again that it is still capable posting since 1946. This seems
larly is still a couple of points of extreme movement, not the
mostly to be a spill-over of
under its 1951 best, and Sin¬ least
being a one-day runup interest in

fact that the

&

associated

Co.

Mr.

with

Collins

H.
was

formerly with Erancis I. du Pont
&
&

Co. and Carl M. Loeb,
Co.

manager

and

prior

Rhoades

thereto

was

of the Miami Beach of¬

fice of Thomson & McKinnon.

■

:-vvA
Volume 179

'V*'.'♦ws.v.i.

■)...

..•••..

1
Number 5316




...

(1677)

The Commercial and Financial Chronicle

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The 1953 Annual Report of
describes
the

a

year

Ceneral Dynamics

of exceptional achievement by

Corporation in fields of hydrodynamics,

aerodynamics and nucleodynamics.
These significant accomplishments are
reflected in the highest annual sales and
earnings in the Corporation's history
—

in

an

increase

net

over

the previous year

of 54%

sales, and of 26% in net earnings.
1953

\

Profit Before Taxes
Net

Earnings

Net

Earnings

per

$206,644,279

$134,551,610

12,693,803

10,567,176

6,218,803

Net Sales

4,917,176

Cash Dividends

Working Capital

5.72

.7.01

Common Share

2,796,569

2,112,510

24,436,138

22,172,249

Plant and Equipment

(Less Depreciation)
Net Worth

7,110,037
31,184,427

6,840,114
,

26,755,545
i

GENERAL

DYNAMICS
ED

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tfitfi y
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GENERAL DYNAMICS CORPORATION • 445 PARK

IOJ
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G

AVENUE, NEW YORK • PLANTS: GROTON, CONN., BAYONNE, N.

lOi 10
J., MONTREAL, CANADA

.

17

Chronicle

The Commercial and Financial

18

.

:

.

Thursday, April 15, 1954

.

(1678)

**

Paper—A Dangerous

Coined

by year,

when the
Federal Reserve Act was passed,
that our country is one of the
miracles of the human globe.

Ohio

Union Trust Co., Cincinnati,

President, Fifth Third

painting out paper money should be a promise to pay that
must carry with it a fulfilment, prominent Cincinnati banker
In

believably

history of the country, and defines our
current Federal Reserve notes as merely "coined" paper. Says
substance and heart of present problem is to fix a fair price

from

Paper

is

money

promise7 to

a

it is and has been my
firm and steady conviction that a
pay,

and

earli¬

In the

est

af¬

times,

think I
it

call

can

floundering on
the

paper

of
primi-

possible

arbi¬

in substance is the
present problem.
we
all agree that a

promise to pa,y without indicating
the method of fulfilment is an

absurdity.
It is a subject that the Congress

in gold

grips with.
Obviously, the ratio of gold to
our
total credit structure in this
must come to

ernment issued paper money

shells

what

or

have

you

as

there
developed the
coinage of
money,

John J. Rowe

sil¬

and

gold

warehouse receipts,
based upon gold or silver in ware¬
house,
were
issued in various
iwflns- in different countries by
Then,

ver.

Banks, and there soon
as

been

and

developed

sufficiently es¬
their promise
to pay in gold was acceptable even
though it exceeded their actual
gold holdings.

without having the
gold to back the issues, and were
forced to repudiate when the war
of the Revolution began, and the
Continental Congress then issued
paper
money,
without security.
The United States emerged vic¬
torious in the fight for independ¬
ence
but
financially, in effect,
bankrupt, becaiise the repudiation
of the Continental currency fol¬
money

paper

lowed.

then

We

the

entered

era

in

chartering of banking corpora¬
tions by various States, the Fed¬
eral incorporation of the First and
Second Banks of the United States,
and

the

themselves

Banks

what stores of

kept

gold and silver coin

they could acquire, and this great
and prospered
with intermittent panics and a fait
percentage of bank failures. These
Banks
issued
Bank
Notes, and

infant nation grew

these

became

notes

general

the

ideologies over the globe and
the different habits and mores of

Act, passed

in

1913, resulted in the issuance
of Bank Notes by the various Fed¬
eral Reserve Banks, secured by

tion, it seems to me even more
imperative that gold be retained
as the fundamental means of bal¬

the deposit of
States

bonds of the United
Government deposited with

ancing annual differences between
exports

the

gold certifi¬

Treasury, issued

variation in

valua¬

tion.
Then

the

the Civil

came

Confederacy

with

which

and

to

purchase

War, and
issued
money

pay

their

troops

^supplies, but had

the grace to make the notes pay¬
two years after the declara¬

able

tion

of

peace

federacy

and
Government;

eourse,

bellion

mained

between the Con¬
the

United

States

a

part of the United States
and the Confeder¬

acy

ceased to exist.

Effect of National Banking System
my

of

birth

opinion that the then
the

National

Banking

System in this country, giving the

newly created National Banks the
power

to issue Bank Notes, secured

by Mr. Rowe before the
Subcommittee of the Senate Banking and
*A

statement

Currencv

March




be

cured

issued

Banks

notes

States Government bonds with

it

the

strikes

and

"Coined"

Paper

emphasize

I recite the above to

the fact that there was a firm be¬

tors

have

must

the

on

course,
total of

substantial

other

in

assets;

have

they

Now,

after

this time

is

an

It

matter.

is,

very

in

circulating Notes,

both

all

of

the

minor

items

sides of the ledger,,

Federal

passed.

*

-

•

except through the open market.

Obviously,

mounted

in

so
my

United

the

States

Treasury and the Federal Reserve
Banks would feel

their

crease

impelled to in¬

gold

stock

the

at

price.
immediate

to

resumption,
panic in the past has struck with
little

warning,

while I do
public would
stampede for gold if our paper
currency could purchase it freely,
I would not personally be ready
the

such

take

to

and

that

feel

not

a

of the

member

risk

if

I

were

a

Congress.

Obviously, if a free market car¬
gold to a premium, there
might be substantial imports of
gold
which
conceivably
could
work
the
price lower because,
ried

after

all, gold earns no interest.
Summing it up, I am strongly in
of

favor

free

in

markets

an

economy.

Chemical Society of heavy

infection and the methods of discovering additional
compounds to "kill the animal within the animal."

worm

in

London

and

22, six private firms
resumed the buying

gold in the open
opinion, this is a
commendable effort to determine
the value of gold in relation to
the British pound, and it remains
to be seen what volume of trading

was
.

of

selling

market.

on

in

losing

every

United

States

than $250,000,000
because of parasites

year

helminths,

as

or

worms,

O. Fos-

Dr. A.

ter

the

more

of

United

In

gold will result. Britain has
been having substantial difficul¬
ties in balancing its export and
We

the

know

dollar

that

price

the

of

increase

gold

in

parasites has
as

come

losses

other

and

to be regarded

essential aspect of livestock

an

the

"Although

chemicals

can

Beltsville,Md.,

ing

told

the

125th

age

about

ing

that

the

of

ican

er

Chemical

1

e

minths.

a

some

of

O.

Foster

of

class,

domestic

said

Dr.

Foster, who is a parasitologist in

zoological
division
of
the
Research
Service's

Agriculture

Animal

Industry.

Household pets may
to

some

of

also play host
great variety of

the

marauders.
An indication that many

ists

the

across

chem¬

country are

seri¬

ously concerned about this major
agricultural problem is the fact
that the Society's Division of Me¬
dicinal
Chemistry
conducted
a
half-day

symposium

on

the

dis¬

of domestic animals which is

ease

as

helminthiasis.

have witnessed
increasing instances in which

"Recent
ever

uses,

chemicals

recommended
many

are

many

years

found to be

of

discovering addi¬
to "kill an ani¬

tional compounds
mal within

cribed

by

an

animal"

were

Harry M. Martin
the University of Pennsylvan¬

of

ia's

School

of

Veterinary Medi¬
should be solu¬
ble in aqueous solutions and body
fluids, stated Dr. Martin.
They
should also be safe for the host,
nonirritating, and not readily
changed into inert substances, he
Such drugs

cine.

4

added.

Jackson

Dr.

American

chemotherapy
the

P.

English

of the

Company's
division surveyed

Cyanamid

chemistry of compounds which

have

been

reported

to

effec¬

be

tive against helminths in the past.
He

pointed out the characteristics
substances which appeared
be most useful and indicated

of the

tion of disease outbreaks

that

in

the discovery of new, more

in this country and

the dollar vol¬

the

Dr.

principal agents in the causa¬
resulting

heavy

losses," declared
"The employment of

death

Foster.

des¬

Dr.

Obviously,
the ratio between the gold stock
1934.

ex¬

cost."

Methods

helminths have been

in

for

notably

are

paramount criteria of safety,
efficiency, ease of administration
and

tract

every

of

be

the
Aurel

invaded

digestive

remov¬

tremely limited in their applica¬
tions, and none is wholly satis¬
factory when critically judged by

-

species
11 o g ether,

animals

anthelmintic

unsatisfactory,

ciety.
These h

50
may

various

So¬

for

controlling a large percent¬
of the injurious species.
Of

national meet-

Am

recommended

be
or

country was made in an arbitrary
manner
when the $35 price was
established

the

are

most

Department of

in

this

minimize

helminths

by

Agriculture,

known

import position.

caused

practicable weapons for com¬
bating helminths, no treatments

my

in

to

measures

management.

States

Bureau

On March

and

•

;

Naturally, this is a very short

and the

Act

by the arts is compara¬
tively small, and I know of no
way in a free, economy to estab¬
lish the dollar price of any article

Foster, of U« S. Department of Agriculture, tells
loss to farmers from
parasitic worms. Other speakers reveal the nature of the

the

for

summary."

has grown is
it was when

Reserve-

needed

Dr. A. 0.

Act.

country has grown fantas¬
tically, and obviously the ratio be¬
tween the existing supply of gold
and the magnitude to which our

the

business

(primarily,

American

the

in¬

Our

economy

tion

^
Against Animal Parasites

provides for a free mar¬
newly mined gold pro¬
duced after the enactment of the

gold.

quite different than

of

possible.
no
interest.

earns

sheer temporary specula¬
as
to
price.
The amount

a

Chemists Wage Battle

have

S. 2364

question before you gentlemen is,
what price tag to put on an ounce

American

has

country

the

gold,

of

volume

70

ket

$25 billion of deposits

omits

since the 1934 in¬
price

fantastically

of the Bill.

deed—$25, billion in gold, $25 bil¬
lion in Government Bonds, and
on the other side of the ledger $25
billion

this

gold, and provides for full
resumption,
effective one year
after the date of the enactment

simple

roughly

imported

the Act may be

for

System

extremely

gold

that

and

exported without requirement
of licenses or permits of any kind.
S. 2332 reaffirm^ the $35 price

the

Banks

Act,

be

consolidated Federal Reserve

the

the

held, bought, sold, or traded upon
the open market, and may in turn

paper money,

Reserve

of

possessions, including

the date pi,

after

is whether it is safe

Federal

the

dollar

known

-

bought, held, sold or
upon
the open
market
the United States, its Ter¬

Alaska,

the

consideration

again make botl^ gold and sil¬
ver
available to the holders of

The

in

are

be

within

to

took

total

tag

that gold, mined

enactment

the

may

a

paper.

at

13 proposes

S.

"coined"

The fundamental subject of

in

im¬

specific

Bills under consideration:

gold in their

under

Inasmuch as,
crease

made

is

Price

three

the

to

as

ritories and

various Bills

budget, but to
its
outstanding

reduce

Farmers
The Problem of Gold

traded

words,

goods in this

be

gold

portance.

had proved to be a
very
dangerous form of money.
Since 1934, the Federal Reserve
Notes became, in effect, a simple
declaration
"This
is
$1.00"
al¬

of

impact

debt.

clause.

Coined paper

though,

price

the

and

on

Free Gold Market

its

balance

lending should be negotiated

resumption

part of

fulfilment

a

only

loans

placed upon it is of the utmost

legisla¬
and the public that promises

both

lief

is

It

Therefore, in my opinion, if we
now
willing to resume an
open
market for newly mined
gold, there should be with it a
strong declaration of policy from
our
government of its intention
to economize sufficiently to not

market, and not by
governmental lending or borrow¬
ing to or from other governments.
The international aspect of gold

Notes—

Reserve

Federal

Stored

are

temporarily bal¬
but again,
that this borrowing

me

should

ket

present

steadily

for

feel that the test of the open mar¬

country?
High taxes naturally increase
wages
and salaries and, in the
long run, prices are governed by

a

market

test

shortly establish a $35 price as
being fair, and I cannot help but

therefore prices

of all manufactured

the public

in

the

reduce

to

costs, and

or

Federal Re¬

has been a
commodities,
and the open market has been one
of the great liberties this country
has enjoyed. I am inclined to be¬
lieve that the open market might

drastically,

payrolls

total transactions;

ance

Treasury.

order

in

upon

people

of

number

government

to

used

be

can

se¬

of United

deposit

the

by

na¬

deficit

temporary^ then temporary

an

the

duce

Treasury

the

demonstrated

trade

smaller

C-—"nittee, Washington, D. C.,

31, 1954.

can

annual

that

of
It is

among

tions and silver certificates in

required to
which
event,
of be
kept by the member banks on
did not happen, as the Re¬
deposit with; the Federal as their
failed and the States re¬
legal reserve requirement. ~ This

Government,

it

Where

denomina¬
the
denominations, and the

cates in 1928 in larger

with

wide

imports

and

tions.

p&ce of the previous
right of issue given by the Con¬
gress to the National Banks of the
country, and the balance sheet of

a

of character and habit
looking at the world popula¬

the variety

should they demand
it, and at what price.

A little
Bank
quoted
market quotations for outstand¬
ing Bank Notes in circulation,

maze

ent

in

currency

of the country.
Note
publication

the

Gold has

for cen¬
of differ¬

balances

trade
With

turies.

covered

The Federal Reserve

ahead of

of

open

wonderful

to drastically cut its expenses, re¬

Prerequisite of

medium of

the international

settling

issued silver certifi¬

1886

in

National

issued

Colonies

American

issue notes,

by silver deposited
in the Treasury, and also issued
notes payable in gold.

ing house became
tablished, so that

Our

in circu¬
Federal Gov¬

is the international one.

cates

the horizons

see

The

As

of the problem

The other aspect

the major paper money

so

reserves,

became

lation, although the

ernment continued to

to speak,
the credit of the issuing Bank¬

fractional

Bank Notes

National

the

As I

vaults
Banks?

serve

costs.

v

or

judg¬

my

Federal

the

in

the

in

to

with¬ country has been dwaried.
tiv e govern¬ out having a gold clause in it, but'
ments
with
International Aspect of the
very shortly thereafter established
the
use
of the National Banking System, and
Problem
wampum

in

held

it.

of the

think

I

1861, the United States Gov¬

In

price

gold should again be raised?
Obviously, opinions would Very

that possibly a free and
open
market for newly mined
gold might be one way to answer

Again this

This legislation proved to
the world the soundness of Bank
Notes
secured
by
Government
bonds, and gold, payable
if desired.

it

heart

policy.

part

various

a

was

money,

the

revert to the us, I feel sure that new discover¬
legal price of gold before it was ies, new inventions, and new tech¬
devalued? Is the present price of niques offer a long range vista
ahead of us beyond any human
gold fair? Should the production
of gold be stimulated if its price ability to forecast.
Is our present Congress willing
in dollars rose in a free market?

advance in monetary

tremendous

filment.

ter, I

of

with

ion, and

manner.

Is

a

issuance

it a ful¬

promise must carry with

trary

deposit of a given percent¬
age
of gold and United States
Government bonds to secure the
by

people to be a wholly

past

due to
the amazing
ingenuity of business), it
is necessary to ponder how large
our
gold stock should be, as ex¬
pressed in dollars, and whether
there is any sacred obligation to
retain the $35 price.
Will
a
$<15 price acquire the
amount of gold which should be
opinion,

human

ment, it is a sheer matter of op.n-

believed by

many

the

that

mean

mechanical
which have kept costs tremendously and,

tion, and in what is

both nationally and internationally. Holds declaration
of policy of a balanced Federal Budget and reduced Public
Debt are required, "if we are now willing to resume an open
market for newly mined gold." Urges Treasury and Federal
Reserve Banks increase their gold stock at the present price.
for gold

of

price of gold was changed
the Roosevelt administra¬

under

for

bined balance sheets that the

being impossibly high.

The

mounted in this tin-

manner

that

Does

increased

processes

recalls paper money

as

increase in the dollars in all com¬

number of cases by un¬

a

year

decade.

costs have risen,

know that

We

offset in

been

less,

the dollar volume of

belie vable

HOWE*

has

and

less

business has

than

bigger

much

so

done

business

substantially

fantasti¬

grown

cally; the accounts receivable of all
merchants and manufacturers are

Form of Money!
By JOHN J.

have

of

ume

deposits in the banking in¬

The

stitutions

to

these

studies

might lead

tive anthelmintic drugs.

-

to

effec¬

Volume" 179

Number 5316

.

.

.

The Commercial and Financial

Chronicle

(1679)

19

T

RICHFIELD

OIL

CORPORATION

Balance Sheet
AT

31, 1953

DECEMBER

DECEMBER

AND

31, 1952

Assets
1952

1953
•

Current Assets:

^

$ 11,581,891

Cash

Accounts
,,

$ 13,025,836

receivable, less

12,385,340

reserves

20,288,312

30,182,472

securities, at cost.

19,785,440

28,251,390

United States Government

22,518,969

of $569,724 in 1953 and

$348,895 in 1952

Inventories:
Crude oil and refined
mined

products, on basis of cost deter¬
by the annual last in first out method and, in
below market
j

the aggregate,

supplies, at

6,459,162

5,625,810

$ 88,860,255

Materials and

$ 81,244,367

$

$

below cost

or

Investments and Advances

,

3,145,547

2,736,759

Capital Assets—Oil and gas

lands and leases, oil wells and
equipment, refineries, marketing facilities, transporta¬
tion equipment and facilities, terminals, office buildings,
etc., at amounts established by the Board of Directors
as at March 13, 1937, plus subsequent additions at cost,
$250,341,560

$301,287,291

less retirements

135,642,159
.

•

$127,350,666

$

depreciation and depletion

122,990,894

$165,645,132

Less—Reserves for
i

$

„

Deferred Charges:

Taxes, insurance and rents

3,267,188

$

2,997,279
1,157,822

788,656

Other

$

4,055,844

4,155,101

$215,486,893

$261,706,778

■a

Liabilities and

Capital
1952

1953
Current Liabilities:
Accounts

on

securities of

Net earnings

share,

as

of Richfield for 1953

were

$28,525,000, equal to $7.13

per

compared to $25,625,000, equal to $6.41 per share, for 1952.

Dividends of $3.50 per

share, including

a

special dividend of 50^,

$23,600,000 in 1953 and $24,000,000 in 1952
90,708

thereof

one

year on

products in 1953 averaged 103,430 barrels per day, as

3,000,000

long term debt..

2,041,786

per

day in 1952.

Sales of crude oil averaged

Long Term Debt (due
Notes

after

one

year):

payable to banks (1.85%), due 1956.......

Notes

24,904 barrels

per

day,

as

compared to

day in 1952.

1

::

as

Twenty-five

Gross crude oil

compared to 27,440,000 barrels in 1952. Net production was 20,603,000

Total crude oil

2.85% sinking fund debentures, due
25,000,000

1974......

compared to 21,161,000 barrels in 1952.

for

Contingencies

Capital Stock

,

per

$ 50,000,000

$

$

202,647

Authorized —7,500,000

shares without
Outstanding-4,000,000 shares

Earned Surplus

par

value

..

74,496,630

$24,000,000 in

enlarged

new

$261,706,778

day.

funds from the sale of debentures to provide for

program

of capital additions. Capital expenditures of

$62,951,000 during 1953
tures. The increase was

program

These

were

$36,432,000 in

and to development of oil and

are

excess

of 1952 expendi¬

attributable primarily to a refinery expansion
gas

of

REPORT. WRITE: SECRETARY, RICHFIELD OIL CORPORATION,
555 SOUTH FLOWER

STREET, LOS ANGELES 17, CALIFORNIA

progress.

GQCKSCQ [F'-U Cl-G




WE WILL BE PLEASED TO SEND YOU A COPY OF OUR 1953 ANNUAL

properties.

highlights in the 1953 Annual Report... another chapter in

the Richfield story

OIL

CORPORATION

Executive offices: 555

South Flower Street, Los Angeles 17, California

.

i.,

74,496,630

89,179,986

During 1953 the Corporation used its retained earnings together with

an

202,647

:

processed at the Corporation's refinery in 1953 aver¬

aged 111,647 barrels

25,000,000

;

23,500,000

3.85% sinking fund debentures, due 1983..,

year

$ 71,000,000
Reserve

production in 1953 amounted to 26,499,000 barrels, as

barrels in 1953, as

year

$ 22,500,000

totaled $202,039,000 in 1953,

compared to $180,828,000 in 1952.

$ 25,000,000

r.....

payable to banks (3.25%), due in equal annual

Thirty

Gross sales and other operating revenue

1,509,600

$ 16,133,116

Other liabilities

instalments to 1963

per

5,905,791

$ 26,827,515

compared to 93,295 barrels

27,689 barrels

49,697

6,788,113

held for payment

Other taxes

paid during 1953.
Sales of refined

8,668,028

income less United States Government

Instalments due within

were

$

$ 14,906,908

payable

Federal taxes

74,654,500
.,

$215,486,893

20

The Commercial and Financial Chronicle

(1680)
>!

1

:

•

'./''J.'

mendations.
Additional savings are

Budget and Cat Taxes

elimination of waste in those

the

curtailment,

maintains

budget

can

eral

Committee on Federal Tax Policy
be cut and balanced at $60 billion.

loans and investments involved in

lion

Federal

from

items

non-defense

in

obligations
for
published in a new

budget

fiscal 1955

was

study just re¬
leased

the

by

Committee
Federal

on

Tax

pri¬
group of

Policy,
vate

fiscal

a

experts.

Arguing that
the

only way
reduce

to
taxes

to

safely is

reduce

p e n

ex-

ditures

along with

the

them,

Committee
led by former

Roswell Magill

Under

Secre¬

tary of the Treasury Roswell Maalso said budget expenditures
for fiscal 1955 could be cut to

gili

billion." This would
have the effect of balancing the
''about

$60

Federal budget

for the fiscal year

beginning July 1, 1954.
The

comprehensive analysis of
Federal
expenditures was con¬
tained in two 30-page sections of
study entitled "Federal Fi¬
nances," covering the general fis¬

a

new

cal

problem and expenditure -re¬

duction.

third

A

section

the

on

tax

problem will be published
later this Spring. Earlier studies
by the Committee were issued in
1945; 1947 and 1951.
Basing the study on the propo¬
sition that U. S. security depends
on the nation's capacity
"to out¬
produce the enemy," the Commit¬
proposed a program "to assure
the continued effective function¬

tee

owns

fish hatcheries,
and dry-cleaning
plants; roasts coffee; manufactures
fertilizer,
clothing,
helium,
ice
cream, tin, nickel, rope, rum, and
paint; and sells furs."
bakeries,

banks,

laundries,

In

listing the ingredients of its
recommended $8
billion cut in
Federal
budget obligations, the
Committee pointed out that any
reductions
in
these
obligations
would not necessarily be reflected
in a cut in expenditures for fiscal
be worked out in

1955 but would

expenditure savings extending

through

fiscal

1955

years.

/

-

Committee

The

future

and

proposed

can¬

$3.3 billion, of the esti¬
mated obligations by withdrawing
from
business
enterprises
and
celling

vastly expanded programs of aids
and
services to
special groups,
which

it

should

said

private enterprise

left

be

r:

uals, including:

to

individ¬

to

or

;

this

will

amount

be

devoted

to

the perfection of commercial uses
of atomic power and should be

function

a

of

private
enterprise;
$500 million for veterans'

(2) over

education and training; (3) nearly

$400

million

ies

"free"

for

medical

for ex-servicemen for

care

illnesses in

and

no

injur¬

way

con¬

nected with their

duty in uniform;
million for welfare aid

$120
ing of our free enterprise system."
to special groups; (5) $350 million
This means first that the na¬
for production and marketing of
tion must "stop living beyond our
means" and balance the Federal- agricultural commodities; (6) $170
(4)

budget, said the Committee, add¬
ing that "we do not believe that
substitute

measures

such

bal¬

as

ancing the cash budget or ex¬
cluding from the budget items al¬
be self-financing
help us in reaching

leged
really

will
this

to

million

subsidies

of

for

airlines

(7) the $330 million postal deficit,
and other programs.

Another
saved
the

$1.2

billion

could

be

items, said

Committee, citing $880 million

for

foreign

economic

and

tech¬

nical

Indispensability of Expenditure

a

accept the principle that

we

balanced

end

budget is a

to

healthy
said

is

continuation

the

economy,

native is to

desirable

tax reduction

that

and

sential

es¬

of

a

the only alter¬

reduce^expenditures,"

After

spending

most

of

tions at the

its

non-military

non-defense

thoroughgoing

should

be

made

from which

travagant
has

an

expenditures,

overgrown and ex¬

establishment

What needs to be

is to abandon

tivities which

area:

re-examination
of the policies

Federal

developed.

done

recommenda¬

are

or

curtail

ac¬

not proper gov¬

ernment

functions, but rather the
province of private enterprise; to

strength

Many
the

should

local

local

penditures

eponomy in the adminis¬
of those Federal services

continued."

Government in Business

Illustrating theektent to which
the

Federal

Government

is

in

business the Committee addpd:
"The government lends money;
guilds houses; stores agricultural
commodities; insures lives, crops

and cargoes;

installs power lines




with

less

help

returned

review

to

to

assure

before

and

other

health

in

present need for which is at least

said

retirement

debt

Committee.

the

chasing

the

of

what it

example,

pur¬

dollar

from

was

fi¬

to

govern¬

legally discharged

its

obli¬

Series "E" savings
bond buyer by paying him in 1951
gation

to

a

the $100 due on
chased

for

the bond he
in

$75

1941.

of his

pur¬

But

in

Balanced

or

taxes

dollars.

1941

Needed

Budget

We believe that the sound

opinion of the

pub¬
country today

the general principle of
the
annually
balanced
budget.
down,"
the Committee
pointed When we speak of a balanced
out that the total (Federal, State,
budget, we mean the, administra¬
local) tax burden in 1953 was tive
budget as submitted by the
equivalent to about 31% on a President. We do not believe that
$3,500 income; about 33% on a substitute measures such as bal¬
$4,500 income; about 37% on a
ancing the cash budget or exclud¬
$7,500 income; and about 44% on
ing from the budget items alleged
a $15,000 income.
to be
self-financing, will really
Too

accepts

come

help/us in reaching this goal.

Much

Money Through
Taxation

The Only Alternative

tend

their

defeat

to

destroying the base

I

•

end

own

on

by

which they
-

■

we

Federal spending in the particular
area from which they ithink they
The

benefit.

-

collective

demands

of these special groups present a
expenditures can be reduced
and
the
budget nevertheless; serious obstacle to budget reduc¬
tions.
Nevertheless, we believe
brought into balance, then taxes
cuts in Federal spending can be
can come down and the tax
sys¬
.

"If

saw

possi¬

bilities for savings in the $40 bil¬
lion of military

obligations, al¬

non-essential activities of the Fed¬
eral Government

eliminated.

or

transferred

private

be curtailed

can

Others

from

be

can

government

enterprise.

Still

to

others

be returned to State and local

can

governments

in whose sphere of
activity they fall naturally. We
should, of course, ruthlessly cut
out all waste and inefficiency in
the essential functions of the Fed¬
eral Government.

of

until

But

functions.

Government
Federal

in

Business

Government

deeply

involved

tivities

that

is

business

in

there

so

ac¬

is

scarcely an
of human endeavor in which

area

it

attained

be

divest the government of

we

unessential

The

solution

no

problem will

our

is

not

engaged.

velopment
peace

lions

The

govern¬

courageously others.
pursue these ends, we can achieve
High Taxes Defeat Their
that strong: defense, full employ¬
Own End
ment, and high prosperity that we
Unless Federal expenditures are
all wish so ardently to maintain."
reduced
drastically,
everybody,
Besides
Mr.
Magill,
who
is
fort.

But

f if

'

and

a

member of the firm of Cra-

Swaine

vath,

members
clude:

and

the

of

Moore,

the

Committee

in¬

Walter A.

Cooper of Peat,
Marwick, Mitchell & Co.; Fred R.

Fairchild, Knox Professor Emer¬
itus of Economics, Yale Univer¬
sity; Thomas N. Tarleau of Willkie,
Owen, Farr, Gallagher and Wal¬
ton; and Alan H. Temple, Execu¬
tive

Vice-President, National City

Bank of New York.

Research

of

The Director

Benjamin

P.
Whitaker Professor of Economics
at

Union

mittee's

was

College and the Com¬
secretary was Alfred

billion

'

*

*

A

SUMMARY

TWO
PORT

OF

SECTIONS

THE

FIRST

THE

RE¬

burden

have

<

of

military

a

pre¬

paredness for years. The security
of the nation resides not alone in
its military strength, but also in
its productive strength —»its
ca¬

pacity to out-produce the

Therefore,

we

average

to

assure

the

Aids

propose

a

continued

burden

of

Federal

on

.

Services

to

Special

Groups
The

Federal

dispenses

;

.,

Government 'also

billions

for

domestic?

aids and services to special groups.
The budget for 1955 projected a
total

of just

these

billion for

$8.7

over

These I aids

purposes.

such

items

medical

mental
tax

the

with

trouble

is that we

system

as

in¬

payments

to

for veterans includ¬
ing education, life insurance, and

bound

be

to

burden¬

inequitable, and a deterrent
to
investment,
production,
and
economic
progress.
Such
high

some,

taxes tend to defeat their

destroying the base
they rest.

own

end

which

on

State

treatment.

and

Local

Governments
Over the years, there has grown

to collect

is

to

trying

too much
rr^oney with it.
Any tax system for collecting rev¬
enues of
the order of $65 billion

upward

and hospital

Aids

Federal

are

uncoordinated accumulation

up an

of

grant-in-aid programs to State
and local governments. The Fed¬
eral
for

Government
grants

fields

to

Spends

the

money

States

in

such

public assistance, health
hospital construction, high¬
way construction, administration
of
unemployment compensation,
as

and

conservation of natural resources,

Spending Levels Near Peak
$74

billion

spent

by

1953

airport
the

rep¬

largest spending vol¬
ume in the country's history save
for the three years of all-out war
(1943, 1944, and 1945). Expendi¬

tional

current

expected

This

fiscal
to

total

year

reach
is

should

responsibilitu and control
services rendered.
'/p.-

bil¬

twice

as

Redu*>ti'>ns

Possible

% 5

i *

Federal

spending

Savings

can

curtailment
Federal

savings

the

I

come

or

in

only

abandon¬

programs,. con¬
are

still possible

better .organization rand
administrative efficiencies in those

.

in

over

.

^

Efficiency Means

as the $33.1
billion spent in from the
1948, the postwar low. and almost ment of
eig^t times the $9.1 billion spent siderable
in 1940.
through
v•

enemy.

voca¬

Although 'major -reductions

much

.

and

These programs
be returned to the financ¬

(1954),

$70.9

over

construction,

education.

ing and control of State and local
governments, thus reuniting the

of the National Government

the

Current

Military Expenditures

-

programs
-

program

our

and

.

cial programs

lion.
carry

*..

levels was: at $3,500—$836;
at $4,500—$1,148; at $7,500—$2,152; at $15,000—$5,102. The funda¬

are

to

to have $16.5

outstanding

June 30, 1954.

taxes in fiscal 1953 at selected in¬

in

,

Strength

heavy

very

come

tures

Security Lies in Productive
will

must continue
heavy tax burden.

resented the

FOLLOWS:

America

a

Federal Government in

OF

loans

agriculture, services"~~and aids to
business, and a multitude oL .spe¬

The

The

*

of

to bear

Foundation, Inc.

First Report Summarized

vast scale, the gov¬

a

clude

possible in part by funds for re¬
search granted by the Alfred P.
Sloan

on

both rich and poor,

by

The Committee study was made

for

energy

It has spent bil¬
housing.
As a lending

ernment is expected

we

president of the Tax Foundation

atomic

of

purposes.

ton

agency

can
be improved," said the made through more frugal financ¬
Committee.; "The attainment\of ing of some government activities
these goals will require heroic ef¬ and the complete elimination of

$400 mil¬ functioning of

elimination."

1953

billion.

They are estimated to total about
$20 billion for fiscal 1955. Many

tem

No reasonable person will chal¬

The Committee also

were

In

accept the principle that

lenge the essential need of main¬

or

only $7.6 billion in 1940.
they totaled about $24

commodities; insures lives, crops,
and cargoes; roasts coffee; manu¬
ice
a
balanced budget is a desirable factures
cream,
tin, nickel,
are
It has become
with
it"'
said
the
Committee. end and that tax reduction is es¬ rum, and paint.
"Any tax system for collecting sential to the continuation of a firmly entrenched in the produc¬
tion and marketing of electricity.
revenues of the order of $70
bil¬ healthy economy, the only alter¬
lion is bound to be burdensome, native is to reduce expenditures. (Federal production of electrical
inequitable, and a deterrent to Though people want their taxes energy is now over 13% of all
It
many
special
groups U. S. electric power output.)
investment, production, and eco¬ reduced,
nomic progress.
Such high taxes strenuously resist curtailment of is spending vast sums in the de¬
If

system is that we
trying to raise too much money

programs,

ward their substantial curtailment

Functions

fundamental trouble with

"The

the Federal tax

effective

are

resource

Unessential

Non-defense expenditures

ment, for example, lends money;
builds houses; stores agricultural

free enterprise
system; specifically, the strength¬
$110 million for foreign informa¬
ening of incentives to produce and
tion and exchange activities, and
invest, and the withdrawal by
$90 million for the promotion of
government from those activities
the rperch&nt marine. Under pres¬
which can be performed as well
ent Circumstances, we recommend
or better
by private business.
thaP Congress thoroughly Review
these activities with an eye to¬
Ravages, of Inflationary Deficits

principal items

Eliminate

to

1935

the

and other weapons.

infla¬

1953 reduced the

power

For

ment

lic

Agreeing that "Federal
are
too
high
and
must

pur¬

budgetary obli¬
gations $1 kjiUion for activities the

doubtful,"

for

ex¬

"There remain of the $8 billion

cut

tion that by

reduction."

tax

grants-in-aid
be

and $205 million for admin¬
istrative expenses of state unem¬
ployment compensation programs.
proposed

cies

Parker of the Tax Foundation.

poses;

"The

are

that

made, said the
Committee.
Some $2.5 billion of
proposed obligations in this cate¬
gory would include: $1.2 billion
for public assistance, nearly $600
million for highway construction,
over $170 million for hospital con¬
struction

by government agen¬
would make large proceeds

available

are

lion for water

possible

Stassen

governments

local activities; and to effect every
tration

state¬

a

financing and control of state

withdraw Federal participation in
the financing of many state* and

which

E.

so-called

programs

critical

aimed

Harold

light of

from the United States.

saying that "defense
must
be
kept safely

capacity of a healthy
private economy," the Committee

"In

nomic

and

the

the

Western Europe now appears able
to maintain both military and eco¬

Committee.

the

within

a

by Director of Foreign Op¬

in

erations

Reduction
"If

aid

ment

goal."

held

assets

-

non-essential

on

an'

new

rest."

(1) One-half of the $1.4 billion
requested
for
development" of
atomic energy on the basis that

deficit

nancing has resulted in

loans, liquidating the terms of
purchasing power, it did
$16.5 billion of loans expected to
not even repay his original in¬
be outstanding on June 30, 1954,
vestment, since the $100 he re¬
and liquidating as much as pos¬
ceived in 1951 was worth only 57
sible the inventories
and other
ping

and manages hotels;
and publishes magazines
and other periodicals; rents build¬
ings; operates stores and commis¬
saries,
communication
services,
terminal
facilties,
warehouses,
roads;
prints

This

in.

taken

has

it

half of

revolving and trust funds for price
supports aids to housing, etc., the
Committee pointed out that "stop¬

electricity; runs rail¬

and markets

; f
D|f
» »•<: 't!f{
living beyond our means. In 20 policies in the light of revolution¬
of the 25 years since 1929, the ary changes in military operations
government has spent more than and recent developments in atomic

1939.

by destroying their base.

blueprint fpr cutting ,$8 bil¬

A

essential Fed¬

as

functions, said the Commit¬

Concerning the huge amounts of

properly the
province of private enterprise. Declares high taxes defeat their
end

ac¬

tee.

Pleads for abandonment of activities which ajre

own

retained

tivities

Contending tax reduction must be accomplished through expen¬
diture

possible

improved efficiency and

through

Thursday, April 15, 1954

.

•'.*«

though it made no specific recom¬

We Can Balance the

.

.

that

are

retained.

Ex¬

amples of waste and extravagance

still;come
are

due to

to

light.

Often

these

taining the strongest possible de¬

cation,

as

overlapping and dupli¬
in the case of public

consistent

works;

in

other, instances,

fense
with

arrangements

productive
economy.
But we cr° convinced
that there are possibilities of very
a

strong

substantial

and

reductions

in

current

the Post

Ultimate $8 Billion Budget Cut
Our

at $45 billion in fiscal 19^5). with¬

of the

expenditures

in

is to blame.

(estimated

military

as

Office, sheer inefficiency

examination of the details
budgetary obligations pro¬

appreciable weakening of jected for 1955 leads us to the
defense. The major conclusion that as much as $8 bil¬
portion of any reduction in these lion can ultimately be cut from
able to the effective functioning
expenditures must be sought from the Federal budget. This takes»no
of a free economy must be to stop a re-formulation of our defense account of reductions
in defense
The

first

and

most

important

step in restoring conditions favor¬

out any

our

national

Volume 179

obligations
from

which

steps

effects

ing

operations

loans

and

of

should

result

initiated,

now

the
1

The Commercial and Financial Chronicle

Number 5316

of
lend¬

nor

terminating
of

or

liquidating

inventories.

in 1955

obligations, $3.3 billion is for
i

which

private

should

enterprise

i

uals; another $1.2
saved

to

individ¬

to

or

ac¬

left

be

billion

be

can

by

abandoning activities
which are non-essential; still an¬
other $2.5 billion by ceasing to
finance activities properly belong¬

to

ing

State

and

local

govern-

1

ments; and finally, another billion
dollar saving is possible by cur¬
tailing certain non-defense activi¬
ties, the need for which is doubt¬
ful

under

present

circumstances.

The full effect of
cut in

be

immediate

an

budget obligations will not

completely reflected in reduced

expenditures in
time
ef

cash

obligation

fiscal

that

1955

Great
No

factor in the

refrigeration fields, were publicly
yesterday (April 14) by
banking groups headed jointly by
the First Boston Corp. and Kid¬
der, Peabody & Co.
The cur¬
rent offerings consist of $18,000,000 of 3%% sinking fund deben¬
tures, due 1974, priced at 99 and
shares

interest
of

and

facilities

$1

fund

the

due

in

has

increased

ma¬

par

working capital re¬
Since World War II,

April 1, 1954, to

31,

dend of 25 cents

Pioneer

the

will

share

a

the

and

is

fields

sales

(Special

the

fiscal

1953,

the

Sept.

had

con¬

solidated

sales of $82,700,000, of
approximately
60%
was

which

of

has

sale

air

of

20%

of

conditioning

•

derived

from

re¬

added

the

to

Harrison

Salle

&

staff

Co., 209

Street, members
Exchange.

With Rogers & Tracy

equip¬

frigeration and ice making equip¬

H.

La

of the Midwest Stock

(Special to The Financial Chronicle)

systems. Approximately
the
latest fiscal year's

was

Chronicle)

Financial

been

Carter

South

derived from the manufacture and

ment and

The

CHICAGO, 111.—Edgar G. Lem-

ended

year

company

to

to

successor

mon

In

30,

as

Carter Harrison Adds

of

refrigera¬

business founded in 1885.

a

well

paid.

was

allied

as

s

is

American

CONTINENTAL

total

be

liams is now with Rogers & Tracy,
Inc., 120 South La Salle Street, r

}

the restraints

productive energies, and

fensewhile
disaster.

on
en¬

de¬

better

a

avoiding

for 1953

reports

of these
strengthen the

ableus to maintain

COMPANY

pre¬

people

effect

to

OIL

economic

Jos. Kastor Partner
In Hecht & Co.

HIGHLIGHTS OF

OPERATIONS

1953-1952

—

$1

19 5

FINANCIAL
Net
>

Per Share

Dividends:

CO

$2.60

$2.50

$84,967,702

$90,748,395

Share

(Barrels

Net Crude Oil

Daily)

Production

113,442

118,896
v

■

New
„

Joseph H. Kastor

Alfred Hecht

j,

member of

a

Stock

the

American

York

and

changes

i

American

April

on

General Partner.

the

represent
York

Stock

tween

a

Both

of the
ucts

New

Mr.

in

pace

t

*

f

in

1947

to

form

expanded

new

jobber accounts.

holds

Continental

re¬

in

working interests

large blocks of

numerous

the

in

Louisiana-Texas offshore

The passage

of

area.

1953 made

to

substantially larger
income

operating

of

April 12 by James

\

Greater

(Special to

The

Financial

Meyers has

—

increased

income

the previous

to

rose

amounted

to

amounts were

more

■

and

than offset

ditures

Chronicle)

produc¬

by decreases in

Continental

continued

months

been

in

area

troduced

year,

several

acceptance.

of

even

was

intense

in 1954.

greater

Under these conditions,

off

The

efficiency

the Company in¬
and

new

improved

products which gained wide
*

sales

industry, which

1953, will be

further product

improvement and stepped-up operating

program

increase

are more

than

ever

essential.

To this end, Continental Oil Company

:

is

consumer

to

products under the Conoco

is

-

''

expanding its research

program

and

giving increasing attention to the

development of personnel.

:

expen¬

OIL

CONTINE

COMPANY

pipelines;
its

intensive
-1

ticipating in the drilling of 346

Ames, Emerich & Co., Inc.,

in

slower

a

expected in 1954. Competition

in the oil

completed

the

is

were

exploratory activities during 1953,. par*.,

associated

rate

submerged lands. Several

wells have

recent

4.1% during 1953. Growth at

possible the resumption

Louisiana.

$85.0 million,

spent on

refineries and

these

During the

Theodore

become

in

to

year.

marketing, but. they

on

on

successful

capital expenditures for

tion

With Ames, Emerich Co.
CHICAGO, 111.

over

all purposes

placement was nego¬
tiated by F. Eberstadt & Co. Inc.
,»

ties

revenues.

$5.8 million less than those of 1952.

sion. (/The

'<

7.3%

Continental's

Talcott,' Inc.
Proceeds will
be
used, by the factoring and finance
firm for further business
expan¬

■

net

con¬

petroleum

products, including exports,/increased

exploration and development activi¬

year,

$40.9 million, showing an improvement

-Private-placement of. $2,500,000
5^4% capital notes, series A (sub¬
ordinated) due April 1, 1966, was

United States demand for

by Congress

two acts

in

$476.8 million and

-,.h-

COMMENTS 1

GENERAL

acreage

of

Gross

Talcott Notes

-with

new

service stations and addition of 25

revisions of prior estimates,

products, and generally higher prices

his

Ebersladl Places

i'

con¬

withdrawals of 43.4 million barrels.

114,722

to

actively

was

substantially exceeded the year's record

gallon mark

Company's

Triangle brand

tinued

through construction of 182

through

daily.

tributed

on

14,809

Red

through discoveries and extensions, and

Greater sales of crude oil and refined

"

announced

95,347

;

the

over

during the last half of the

left
;

billion

the

at

runs

were

barrels

were

firm.

oVvn

:

128,152

i

.

'

Mr.

and

;

16,145
145,348

/

by Others

Sales of Refined Products

13.1% above 1952. To keep

oil

fineries

originally associated
with Sartorius & Co., which Mr.

Hecht

two

partner¬

Hecht

Processed

with the growth in gasoline sales,

crude

Mr.

and
a

114,722

At Own Plants

Company, sales of refined prod¬

were

having

Hecht

of

averaged 118,896 barrels

crossed the

and

on April 8.
friendship be¬

culminates

Kastor

the

on

many

daily. For the first time in the history

Ex-

member

22-year

Alfred

-

Kastor

ship.

firm

a

1952 level and

9, 1954, as a
Mr. Kastor will

Exchange,

been elected

-Thus

Stock

reached in

increased 4.8%

production

Exchange

in 1932, joined
Hecht & Co., 14 Wall Street, New
York City, members of the New

f

were

Company during 1953.. Net crude oil

Joseph If. Kastbr, who first be¬
came

highs

Refinery Runs:

the/operations of Continental Oil

.

2'

5

$24,341,442

$25,315,104

Capital Expenditures
OPERATING

9

$38,087,890

$4.20

Total
Per

.1

3

$40,874,666

Total

Earnings:

a

-

ex¬

.

You may
tor

obtain

a copy

Stockholders by

of

our

1953 Annual Report

writinP Continentalf Oil Company,

\efeOer

New
Phiz*
K,

105 South

/

bers

of

La

Salle Street, mem¬

the. Midwest

Stock

ploratory wells; 57

Ex -

reservoirs

were

new

oil and gal

discovered. The addi•„

change. Mr; Meyers '-was formerly

tions

Continental's

to

crude

r

reserves

with David. A. Noyes & C6;
t

.

.

...

,*-'i

w'-i'-t

":i"{"it**-«!••?*' t\».




T'4

■!>tr

'"J

>■

.

'it

.;fr

(
•{).

,1!'

;;

N

.

CHICAGO, 111.—Samuel A. Wil¬

are

Presented

challenge

economy, remove
our

of

accessory

for
brought down

be

the

The

steps

balance

from

actual
we

made

debt.

The

ment.

stemmed

the

budget will be balanced, taxes
be reduced, and a beginning
on
paying off the Federal

can

in

conditioning
tion, York Corp.

than
that
of
bringing Federal
spending down to a level where
the

the

equip¬
Dividends on the common stock,
prpdof the corporation have been
ucts for the Atomic Energy Com¬
paid
mission and military services. Net
at the rate of 25 cents a share
quarterly
since
January,4 1952. income for the Sept. 30, 1953, fis¬
cal year amounted to $2,740,000.
In January, 1954, an extra divi¬

volume

100 after March

A sinking fund is cal¬

1971.

of

par.

ment and services

company

Optional redemption prices on
the debentures range from 102 %
in
the
12
months
commencing

1960

100%

air

has expended ap¬
$12,000,000 on new
facilities and equipment and con¬
templates further expenditures of
$9,000,000 through 1955.

this

bonds

vol¬

sales

proximately

financing
will be used to retire $3,345,000
in outstanding first mortgage
sinking

and

its
quirements.

value, priced at $26,875 per share.
Proceeds A from

in

growth

terially

220,000

stock,

common

sharp

ume
during the past 18 months
has placed rapidly increasing de¬
mands on York's manufacturing

offered

accrued

corporate purposes.

A

major
air conditioning and

retire

incurrence

and

Challenge

to

eral

and

debentures of York Corp., a

to

by maturity at

about $60 billion.

greater

sented

stock

common

issue

1963; to repay $5,000,000 in
loans; to pay for $10,500,000
in contemplated expansion of
plant and facilities, ^md for gen¬

Corp. Debs. & Stock
of

culated

bank

,

expenditures

can

level of

a

due to

However,

payment.

convinced

to

1955,

between the

lag

an

and

Bankers Offer York
Issues

Of the estimated savings

tivities

.

21

(1681)

-

1

r

I

!v

'I

'

1

:

!u:

i

Commercial and Financial

The

. . .

Thursday, April 15, 1954

vertising

evaluation.? If seems to

Chronicle

(1682)

82

deserve

A Year of

Opportunity

For Industrial
By CARLTON

Advertisers

II. WINSLOW*

of Sales,
Engineering Corporation

Vice-President in Charge
Cuno

why 1954 is a big year for
opportunities in industrial

Mr. Winslow, after giving reasons

lidiistrial advertising, cites new
advertising and holds
behind

consumer

goods

industrial manufacturers have lagged
concerns in developing merchandising

industrial advertising has moved along
distribution into an era in which it

programs. Points out
with other functions of

will

assume

greater importance.

emphasis in varying de¬

major market?
This is a matter for constant dil¬
igent study arid there is nothing
like frequent field experience to
help round out the picture.
On
this
subject of product
knowledge I would like to toss out
a
thought to the agency people,
particularly those whose respon¬
sibility is contact with the client.
This buisiness of advertising, I
will grant you, involves talents
and skills and knowledge which
call for quite a fair degree of spe¬
cialization. But isn't it sometimes
overdone in such a way as to
throw the sales problems of the
product into eclipse? I know more
grees

for

each

pointed out that the brains
industrial advertising
and

of!the*

have far
opportunity better ways of knowing where our
persented for well over a dec¬ advertising goes than of know¬
what it does after it gets
to demonstrate the meaning of ing
mar¬

for example, that we

me,

keting field have an
not

ade

great

in

merchandising

modern

the

industrial markets of the

United States.
I think that Mr.

Crain is abso¬

lutely right in stating: that
industrial
manufacturers

Nevertheless,

there.
trial

the

indus¬

advertising manager has to¬

day, I believe, not only an obliga¬
tion to use the various methods of
evaluation

that

his

dis¬

are

at

own

problems, a

most
posal, but by ingenious adapta¬
have
tion of these methods to the pe¬

behind consumer goods
in developing merchan¬
dising programs; that where this
is true the industrial advertising

lagged

concerns

culiarities of his

real

opportunity

sounder program

to
build
a
and sell it con¬

vincingly. I am sure that we all
has a wonderful oppor¬
haye much to gain from the ses¬
tunity because his is the creative sion we shall hear on this subject
mind which is capable of singling
later on in the day.
out a dramatic idea around which
While it is not my purpose to
manager

who-views the entire program can be built run the gamut today there is one
and which has the power to stim¬
last point I Would like to bring
ulate all of the selling and mar¬
out as we look at the things man¬
keting activities of the company;
agement expects of us. Market¬
that the advertising man who at¬
ing costs must come down.
The
tempts this kind of service may
squeeze will be on to reduce and
find himself becoming a part of
control advertising expense. We
management to a degree he may shall have to make strategic use
to the point where the product
not previously have experienced.
of our funds with the utmost in¬
and the hard practical problems

than one manufacturer

view
agency people with basic mistrust.
habit
I think this often stems from the
of subjecting every major thought
plore for a moment some of the
tendency, in their sessions with
basic ideas behind this
confer¬ and plan to scrutiny from the management, to go off on flights
management viewpoint. It's, a
ence theme.
of fancy into weird and wonder¬
way of thinking which I believe
In the reful uses of their special techniques

1954 the Big Year for
Industrial Advertising? Let's ex¬
is

Why

v

it

all

has

been

to

the

fashion¬

able

do

sil

have

essential

to

about

that job we

of selling and

satisfying

people at the top. How, then,
our
managements view this

problem of industrial

around and
talk

most

is

cent postwar
years

adopt management's point of
—to cultivate the ability and

I sometimes

advertising?

of
selling it become
considerations.

in

think that manage¬

brings me to another area

activity that is certainly vital
to the success of our programs—
I think that agencies in the in¬
the merchandising of our adver¬
of

dustrial field could step up the ef¬
in industrial fectiveness of their efforts very
the
near
fu¬
compared to
materially by placing greater em¬
ture
always
consumer
goods concerns, has a
phasis on the job of acquiring
just ahead —
greater struggle and has to do more detailed knowledge of the
when our varmore groping when dealing with
product, and the every-day prob¬
i o u s compa¬
advertising problems than it has lems of
selling it. It's a concept of
with any other phase of its busi¬
nies, for the
joining the selling team as com¬
first time in
ness.
As compared with more ex¬
pared to the concept of rendering
C. H. Winslow
act sciences such as might be em¬
many long
a highly specialized service from
years,
would
ployed in developing an incen¬ off in some ivory tower.
This
have to get out and really sell; tive plan or calculating tool costs,
problem, which is certainly not
a period of tough competitive con¬
the
whole realm of advertising
one, especially where
ditions- that would separate the presents a host of problems which |m easy
compl'ex technical products are in¬
men from the boys — a buyers'
seem
to
defy
clear definition.
volved, rests largely between the
market.
Well I think it can be Perhaps we too have not always
account executive and the adver¬
truly said of the majority of com¬ done all that we might with the
tising manager. I believe that if
panies represented here today that new tools at our disposal. It has both work
together toward equip¬
we
have arrived in that long been easy to wave off pertinent
ping the agency with a better
awaited set of conditions.
questions from topside with the working knowledge of the prod¬
It is a very natural habit of customary explanation that in ad¬
uct and its applications, the extra
top management to concentrate vertising we're dealing with in¬ effort would pay some handsome
its
attention
and efforts upon tangibles. A mysterious frustrat¬ dividends in the form of a pro¬
those phases of its business which ing haze surrounding the whole
gram better tailored to the sell¬

time

that

This

secondary

ment, particularly
manufacturing
as

tising to the sales force. I am glad
to see that what promises to be

genuity
ciency.

and

hard-driving

effi¬

It's just another challenge

and every

challenge1 is

an oppor¬

tunity. I like to feel and I do be¬
lieve that most people come to
conferences of the kind that has

interesting session on been planned for today in a spirit
is planned for today. of self-examination and seeking a
I do feel that a great many indus¬ fresh
perspective.
Today, more
trial advertisers fail to get as than at any time in recent years,
much as they should out of good it is so opportune that we gather
advertising programs b e ca use together in this spirit for a fresh
they have failed to place suffi¬ look at the broadening horizons
cient emphasis on selling the peo¬ of industrial advertising.
I have an intense interest in,
ple in the field.
We want our sales people in this whole great field of indus¬
the field to believe in our adver¬ trial advertising. I firmly believe
tising, to understand What it is that it has moved along with the
designed to do, to feel that it is other functions of distribution,
tailored to their needs, to be en¬ into an era during which it will
far
greater importance
thusiastic about it, to use it fully assume
and effectively. It seems perfectly than ever before in over-all com¬
obvious that these things simply pany planning.
I have a deep
won't happen unless we make it conviction that industrial adver¬
our business to
get out and sell tising people who will reach for
them with the same determina¬ the opportunities inherent in this
tion with which we are constantly new set of economic conditions,
are most critical under the con¬
subject has led too many com¬
striving to sell our - products to who will constantly put their
ing needs.
>
ditions prevailing at any given panies to approach their advertis¬
thoughts to the test of the man¬
Getting back to facts—the need our customers and prospects.
time.
Thus we have seen long ing programs, as I heard one per¬ for more and better facts—I note
I want to say a few words about agement viewpoint, who will build
son put it, with mixed emotions of
periods of great stress on plant
that the first session this morn¬ a hidden by-product, very impor¬ soundly on more and better facts,
facilities,
procurement, produc¬ faith and fear—faith that some¬ ing will be devoted to the subject tant to the personal development who will exercise ingenuity and
hard driving efficiency, face right
tion
in general those functions how or other it will do some good,
of market research and, very ap¬ of the industrial advertising man¬
now
and
which have to do with getting our and. fear that without it the boat
greatest chance they
propriately, that three points of ager, that comes out of a good
have ever had to increase their
j
products out the shipping room might be missed.
view—the advertiser, the pub¬ job of merchandising his advertis¬
door. Today the spotlight of man¬
But it is not a practice of pro¬ lisher, the agency—will be repre¬ ing to the sales force. Remember stature and achieve all that goes
agement is sharply upon the activ¬ gressive management to flounder sented on the panel. Here indeed that management is always watch¬ with it.
ities of all of us who are con¬ lpng in any area of activity vital is an area of activity which must
ing us, critically. Our bosses see
cerned with marketing. I think it to
successful operations
simply be primarily concerned with sep¬ us not only directly but through
will remain there for a long time because the problems bty their
arating facts from fancy.
Once the eyes of others, and notably
to come.
very nature are hard to define and
again we're talking management's those people in the field who by
Behind this scrutiny, and the the answers hard to pin down. If
own
sales
performances
language. They will welcome, ap¬ their
reason for it,
is the fact recog- there has been an indifference in
R. Victor Moseley of Stroud &
preciate and reward successful ef¬ have won positions of power and
nized
by management that the recent years because sales came forts to
get away from guess work influence and are close to the ear Company, Incorporated, Philadel¬
functions of advertising and sell¬
easily, because
other problems and apply scientific methods in of management. It is a frequently phia, Chairman, Corporate and
ing have moved to positions of were more pressing, because tax this field,
just as they have in overlooked fact, I believe, that Legislative Committee of the Na¬
top importance in this year 1954 laws encouraged extravagance or other
phases of business with such management's evaluation of the tional Security Traders Associa¬
and that they must be brought to
laxity, we can be sure that it is techniques as job evaluation or capabilities and performance of tion, Inc., in announcing the full
new peaks
of efficiency and ef¬ a thing of the past and that alert better incentives.
its key marketing executives
is membership
of
his
committee
fectiveness. Not only do we find
management everywhere will no
It's very difficult to generalize profoundly influenced by what it for 1954 requests the cooperation
ourselves
playing a more vital longer resign itself to the soCan you of all N. S. T. A. members in a
about market research in indus¬ hears from the field.
role in the successful
operation called intangibles.
trial concerns because1 of wide think of a more compelling per¬ constructive effort.
Any of the
of our respective enterprises, but
-The first great need, then, it variations in the placing of re¬ sonal reason for getting out there following committee members in
we
are
doing it under a set of
and pitching to win by perform¬ addition to Mr, Moseley will co¬
seems to me, is to make the in¬
sponsibility for this function de¬
conditions which will require us
ance not only an enthusiasm
for operate.
tangibles tangible by building on pending upon the size of the com¬
to produce more for every dollar
a
solid foundation of facts.
All pany, management philosophy and your program, but the respect and
J. Newton Brewer, Jr., Rouse,
spent and be able to show it. The
support of the sales force for you
In many situations
too often we have seen advertis¬ other factors.
Brewer
&
Becker, Washington,
demands upon us v/ill be exacting,
the field is wide open to the ad¬ personally? Surely this is another
ing dollars wasted under the in¬
D. C.
y
but herein lies our great opporgreat opportunity that the indus¬
fluence of guess work, hunches, vertising
manager and
the;op¬
Walter Mason, Scott, Horner &
; tunity.
trial advertising man cannot af¬
portunities to broaden his function
So much for the business cli¬ pet ideas,, prejudices—influences
ford
to
miss.
Again from the Mason, Lynchburg, Va.
that thrive, on ignorance of the are very great. In most other sit¬
mate and the new demands which
William J: Burke, Jr., May &
facts.
We need more and better uations, even where the primary viewpoint of fact-minded manage¬
it automatically thrusts upon us.
}
the things we can do to Gannon, Inc., Boston, Mass.
facts about our products, the sales responsibility rest elsewhere the ment,
—

a

highly

this subject

,

—

.

-

NSTA Corporate

and
Legislative Committee

'

Let

us

while

remember, however, that
shift of emphasis to

the

problems, the markets, the media
and techniques we
use to pro¬

advertising

manager

canmake

more

accurately measure our ac¬

{

.T.

Wilrner

Butler, Baker,

Watts

should complishments present a great & Co., Baltimore, Md.
marketing creates a strong tide
seize
Stanley L. Roggenburg, Rogevery
opportunity to col¬ challenge and further opportunity.
mote
th^m. iWe need the facts and
running in our favor, the oppor¬
We
need-better yardsticks
not genburg & Co., New York, N. Y.
laborate. Basically my. feeling-is
we need to use them intelligently.
tunities inherent in this new set
the
industrial " advertising only to help us build the better
Getting back to management's that
of economic conditions will mate¬
manager has a definite place in programs we must have, but to
Joins Merrill Lynch Staff
rialize only as we woik to create point of view let's remember that
help us sell those programs. We
management loves facts, feels at the market research picture and
them.
(Special to The Financial Chronicle)
They are, to no small de¬
that this is another area of activ¬ need all the help of this kind we
home with them, knows how to
gree, a product of our own ef¬
can get for the job of persuading
COLUMBUS, Ga. — Mrs. Ellene'
interpret and use them. Manage¬ ity where,, by exercising initia¬
forts. We must reach for them.
M. McGehee has become associ¬
ment
is
more
inclined to have tive and resourcefulness, he can management that we can do what
I'm sure it's the ambition of
we
say we can do.
We need it ated with Merrill Lynch, Pierce,
confidence
in
programs
built make further strides toward his
every
alert advertising man to
again
in
showing
management Fenner & Beane. 101 Twelfth
around
facts
clear,
pertinent, own personal development.
perform in such a way as to lift
Street.
Mrs. McGehee was for¬
Another great opportunity for how close we have come to ac¬
well presented facts.
his function and importance in his
what
we
said we merly with Courts & Co.
There are the facts concerning industrial advertising in this new complishing
company or, to use the words of
could accomplish.
'
our
products themselves — their era lies in the development of dy¬
your Chairman,* to win a place on
We haVe numerous measuring
With White & Co.
applications, features and limita¬ namic merchandising programs. I
management's team.! I can think
tools and techniques available to
tions! Elemental as this seems to did not have the opportunity of
(Special to The Financial Chronicle)
of nothing more vital to the real¬
us—some
good and some which
be, do we always know as :much hearing Mr. G. D. Crain, Jr. speak
ization of this ambition ihan to
leave a lot to be desired. I think UBLOOMINGTON, 111.—Clarence
as we should
about our products on merchandising before you at
O. Miller is now with White &
we can all agree that a great deal
and
♦Keynote address by Mr. Winslow be¬
particularly
to > know
the your February meeting, but I did
of pioneering remains to be done Company, Corn Belt Bank Build¬
fore the Annual Conference of the Indus¬
points of importance to the differ¬ read with a great deal of inter¬
ing.
trial
Advertising
Association
of New
what
he
had
to
say.
He to give us better methods of ad¬
ent groups of users, the points that est
valuable contributions and

*

.

—

,

.

York, New York City, April

5, 1954.




,

Volume 179

Number 5316

.

.

The Commercial and Financial Chronicle

.

(1683)

paid eventually once more in gold.
A solution would be if Germany

European Payments

J

"

_•

■

t..

.

to

were

her

use

balance

credit

with the E.P.U. for accelerated

Union in Danger

re¬

formula

must
June

cure

the

of

Point;; out

abandonment.

failed

their

correct

to

of

.

forts
the

made

towards

between

consolidate

g

and political links
sovereign states' of

military
the

balances.
the E.P.U.
be

was

intended to

never

receiving long-term loans.

and

Its ob¬

W estern Eu¬

ject is to assist participating coun¬

receive

tries in their temporary balance
o,f
payments difficulties.

rope

much

tion,

atten¬

it is not

generally

re¬

alized that the

existing spe¬
regional

cial

monetary

and

mmercial

c o

links

between

them

in

are

The

by

whether in the
monthly payments
or capital
repayments, would ba¬
sically alter the entire character
payments,

form of current

the

of

system.

The

behind

idea

the E.P.U. is that it should enable
the

participating countries to trade

even

de¬

stroyed.

Einzig

For

restrictions

there

years
has

b

e e n

a

for

the

sake

safe¬

of

guarding their gold reserves.
participating countries

If

seme

ac¬

high degree of multilateral trad¬
ing
between
the
countries
of
Western Europe as a result of the

cumulate under the system exces¬
sive credit balances tne remedy is

operation

have to do is to encourage

ments

the

of

Union.

surpluses

European
this

Under

deficits

and

Pay¬

system
intra-

on

European trade have been settled

through

a
clearing arrangement
by the E.P.U. Each par¬

worked

ticipating country had
to

which

it

quota

a

entitled

was

up

settle

to

largely

their

in

other

from

countries,
countries,

Western

imports

European

exports

In

v

they

All

to abstain from stim¬

or

their

ulating
Western

hand.

this

those

to

latter

respect

Germany is particularly
By resorting to various
she has been expanding

active.

devices

its adverse balances

her sales to the Sterling Area

debited

through being
the amount by the
country was under

to various Western

accept

ing surplus with
largely the result

with

E.P.U.

Each

obligation
to

their

credit

to

in

quotas

balances

Payment

was

payment

the

with

up

form

the

of

E.P.U.

debit

balance

the

exceeded

quota.; This

description is admit¬
tedly an over-simplification of a
very
involved arrangement, but
it

suffices

indicate

to

principles

drive.'.

which

on

the

the

basic

system

operates.
recent

years

Germany, Belgium and

Western

othpr

some

cur¬

countries

is

not

surplus

much

too

to

to

librium.

Their

surely
expect the
collaborate

to be "good

with

balances
stimulate

should

in¬

to

reluctance

their credit

E.P.U

them

creditors" by import¬

countries have been accumulating

ing more or exporting less. Should

large

the proportion of payment in

credit

E.P.U.

as

balances

result of

a

with

the

their export

gold
provide an

increased it would

be

surpluses in relation to the rest of

inducement for them to aim at an

Western

increase of their export

Europe.

hand,

Britain,

other

countries

ances

On

had

other

and

France

their

on

the

some

adverse

bal¬

the

E.P.U. shows large debit balances.
There have been some repayments

in

gold

the basis of the rules

on

of the E.P.U., but their debit bal¬
ances

appear to

have become per¬

petuated.
The

E.P.U. agreement is due to

1954, and
negotiations have been conducted
some

time

the

by

Managing

Board of the E.P.U. in Paris about

the terms

on

which the participat¬

ing governments
continue

their

prepared

are

adherence

to
the

to

system. These talks apoear to have
reached

"You

cannot expect

gold

and

the

larger

gold
a

a

deadlock.

For the gov¬

ernments of the surplus countries

—especially

Western

Germany

and

Belgium—are not rrr pared to
renewal on t*»e basis of
the
existing terms.
They have
grown tired of accumulating credit
balances with the E.P.U. abd in¬
agree to a

sist "that

they

receive

must

a

larger proportion of payments in
gold than under the existing ar¬
rangements. They proposed to the
Managing

Board

two

alternative

breakdown of the whole

countries

other

and

balance
that

with
to

endeavor

to

by

balance

means

of

quantitative im¬
removed re¬

the

reimposing

force

might

Or .it

arrangement.

correct

have both

to

trade." If
countries insist on
payments it might

surplus

debit

There is,

of

of

favor

repaying

by
of

much to be
liquidating the

course,

debit balances.
ure

the

existing

the

After all, the fig¬

gold

reserve

does not

true picture of the gold
position
of the
countries con¬
cerned so long as tbev owe large
a

pmounts
that

the

to

matter,

to

E.P.U.,

The

of these debts would

serve,

rood,

int~>

the

and.

for

International

the

Fund.

Monetary
inroads

renavment

make heavy

British

gold

re¬

but this would be all to the
because the slow but unin-

Under the second deficit countries
should

repay

balances

in

which

gold
have

any

been

debit
out¬

standing for more than two years.
They
feel
particularly strongly
against

the

"freezing"




of

these

has generated false

ing

with

to

this

KPU.

the

courage

Western

would

Germany

to

Atomic

the

had

us

En¬

just

ac¬

position of huge batches
the

trol

or

to

determine

to

measure

the

"study

tissue

pro'grami" on industrial reactor de¬
velopment. "Along with 11 groups
composed
of
such
prominent
American
corporations
as
the
General
Electric
Company, the
Dow Chemical Company, the De¬
troit
Edison
Company and
the
Monsanto Chemical Company, the
Machine

American

&

Foundry

Company has contracted with the
Commission
to
participate in a

study
atomic

to

applications,

energy

stated.

Patterson

and
reactor
industrial

reactors
related

of

equipment

"We

direct cost

hear the

which will

Mr.

win

very

take

units

this

if

thin

flow

pipe

of

lines.

use;

radi-car-

in the future is practically
limit.
I do not
know,
whether an American housewife
emerge

chine

with

will be prepared for'
study and comprehend;

Course Offered
Canada

Ont.,

LONDON,

Session

of

the

—

The

Manage¬

Training Course will be held

from Aug'. 2nd to

Sept. 3rd, at the
University of Western Ontario.
The course is designed to assist
business in training
executives.
Admissions
are
governed by a
businessmen

committee

of

university

officials.

inembers

Since

and

class

selected so that they

are

represent a cross section of Cana¬
dian industry, it is necessary; to
limit the number from

Representatives
vestment
the

business

company,

a

particular

of industry, and
part of the country.

type

the

from
have

in¬

attended

past three sessions and

have

ma¬

been enthusiastic about the course.

atomic

battery.

Applications should be addressed

wants to

be there

her

an

However AMF

for
the

We
we

Seventh

without

run

our

victory
throughout

com¬

applications that
foresee today we are con¬

ever

and
hands '

progress

State of Mind.'"

can

vinced that the number which will

will

can

that fabulous thing'—'The Ameri¬

•

fundamental and
complex
processes
which
place in the big cracking
where gasoline is produced.

can

of

age

progress

world.

"In addition to
we

which,

we

crowning

a

human

be used

rate of

long

scientists

wisdom,

command.

golden

a

to

of mol¬
and con¬

They can

through

liquids

of

thickness

plastic films.

the

and

prosperity. We hold it in

ment

ten steel,

Mind.'

of

radio-active

the chemical

on

State

have

we

washing

with the tools to make the wash-

to Walter A.

Thompson, Director,

by May 15, 1954.

expect to
this study

of

to at least a hun¬

run

dred thousand dollars

year."

a

Continuing, Mr. Patterson said:
"We

in

believe

AMF

at

the

time future and we

peace

of

engaged in

instance,

principle,

re¬

on

a

AMERICA'S

building block

a

LARGEST

nuclear mechano set

a

will, to make such reactors

FAMILY

wide variety of require¬

a

ments.

CHAINS OF

versatile and able to

flexible and

satisfy

ONE OF ;

For

designing

are

we

search reactor

if you

broad program

a

development.

engineering

believe,

We

that

see,

you

SHOE

nuclear reactors and nuclear pack¬
age

plants are in the im¬

power

mediate

the

'American

The

Mind.'

of

State

of

future

327 STORES

quicker,

4

become

will

"Nuclear

general.

package power plants

needed in many remote areas

are

Think of what elec¬

of the world.

tric energy

could do for ore-rich

(^CKtlHUcd

<Utd PlOflCte

1

countries, where there
ter
or

falls,
even

wood.

that

Nuclear

plants in these

power

today.

mind

my

will

plants

commercially with con¬

ventional

power

as

plants anywhere

....„

you

know,

is already of great

isotopes,

there is

a

practical value

These

and

are

the radio¬

have

they

many

Radiosodium, injected into

uses.

blood

stream

1952

>

$48,095,996

44,436,208 «

Net sales

2,503,439

43,767,847
2,663,873

Taxes

1,240,000

1,481,000

Net earnings

1,263,439

1,182,873

4.56*

4.35*

1.70

Per Share Common*.

1.70

Dividends Per Share
Common (Cash)

is

of

vital

5 per cent

Common (Stock)

None

7,946,537

by product of atomic power which

to humanity.

,

$48,946,604

Dividends Per Share

future.

near

"Now

areas

question in

no

nuclear

in the

package

Total business

compete with conven¬

can

compete

1953

are no wa¬

supplies of coal, oil,

no

There is

the

FACTORIES

qiiicker their industrial *

ized, the
use

STORES
•

Stockholders' Equity
'Based

on

shares

1953, 212,875;

7,938,551

9,884,827

9,488,188

outstanding at end of

year;

1952, 202,739.

Copy of Annual Report available on request

use

aim

surplus in

at

a

larger

to-doctors studying
of

the treatment

circulatory deficiencies. A ra¬

dio active isotope of iodine
wide

use

the

in

is, in
and

diagnosis

G. R. KINNEY CO.,

INC.

2 Park Avenue

-> >

en¬

and

other beneficiaries of the transac¬
tion

Company,

Foundry
that

trol checks

may
accurately
anticipate, the

we

and

increase of that reserve

terruoted

ontimism lead¬
unwarranted
wage
de¬
ments in gold of current deficits'
mands. The trouble is that, should
should be raised from 150 to 75%.
Fritain renav its
debit balance

solutions: Under the first the pav-

that

so

'American

"I believe that there lies before

bon to study the

tional

present

est,

evaluate

be used to run con¬

can

Petroleum

cently.
in

&

up by a
amounts of

invisible

other interested concerns a

plants

said

That is why we are exploring in¬
dustrial atomic energy to the full¬

plant. ' Tiny

tually taken
materials

comes.

want to be prepared.

"Atomic energy is a slave

cepted his company's proposal to
undertake
in
conjunction
with

port restrictions they

past

of Tdol Engi¬
City on April

Commission

ergy

multilateral

lead to

a

put it,

negotiator

British

a

Britain

be renewed by June 30,

for

As

at

of the

time

we

therefore, that they are standard¬

reduction.

intra-European

trade and their accounts with

surpluses
collaborate in their

than

"rather

the

of

the

"Yes,

are

towards the end of restoring equi¬

the

address

an

Society

announced

pur¬

would correct

countries

of

course

Machine

are

having failed to

their balances of payments,
it

Western

face

in

the

Chairman

Patterson,

in New York

atom's

policies which

strengthening
unity

of

one

as

when

danger.

common

6, Morehead Patterson, Chairman
of
the
Board
of
the American

the E.P.U. is
of this export

While the deficit

crease

During

European

%

to blame for
sue

and

Her large and grow¬

rency areas.

made in gold to the

extent of 50% of the deficits when

the

the

In

American

gold

importance

economic point

also

a

the Second Annual Banquet

neers

is that
increase of the proportion of

with other participating countries
without having to impose import

or

Paul

shared

any

danger of be¬

Dr.

view,

other debtor governments,

ing

weakened

British

of

means

of

is

an

se¬

of the Board, American
Machine & Foundry Company, reveals Atomic Energy Commission has accepted his company's proposal to undertake,
along with 11 other prominent corporations, a "study pro;
gram" on industrial reactor development.

is that

institution for granting

an

some

but

to

Study Program for
Jiidustrial Reactor Development
Mcrehead

Their argument

Yet

Reveals

payments,

collaborate towards creating an equilibrium.
LONDON, Eng.—While the ef¬

little likelihood

solution.

a

only from
view

order

control

have

member countries

balances

such

of

in

if

and
likely surplus countries in the Union will

it is not

asserts

deficit

adverse

European

of

Noting the European Payments Union agreement is due to
be renewed at the end of June this year, Dr. Einzig points out
weaknesses in the present-arrangement that puts it in danger

30

maintenance

Its

But there appears

By PAUL EINZIG

ing machine and also the battery

continuity of the E.P.U.

not

repurchase

or

between

and

of her
long-term debts in Britain and
other Western European countries.
demption

found

be

now

23

export

the hope of being re-

analysis of thyroid gland diseases.
Isotopes
in

are

used

agriculture,

to

in

many

show,

New York 16, N. Y.

,

ways

for

in¬
-*>

stance, how much fertilizer is ac¬

n

i

and Financial Chronicle .'*.; Thursday, April 15, 1954

The Commercial

24

(1684)

;

meetings, the other teachers smile

/

trouble mak¬
principal or
school committee to allow this,
but then they also want their jobs!
Many good teachers tell me
they have ceased being a martyr
and have at last seen the light.

•

No

and refer to them as

It is wrong for a

ers.

W. BABSON

By ROGER

V

President of Parade

high standards and more discipline in
teachers is to be popular by giving high
students, and blames teacher's laxity for difficulty
of high school students to get good jobs.-

tion, and advocates
schools. Says aim of

grades to

share with

to

The Standards We Raise

these

letters

seem

Teachers tell
insist

represent.
point of

to

dis¬

tion

ed"

R»fer W. Babson

of

that

someone

and that it is much better

himself,

working

far

he

as

can."

to progress as
This teacher

fresh

Of

course

be

where

direction.

that

need

we

guidance from

use

s u

reWelker

the

problem.
the

That

dent be

which

nature of the

cause

Mr.

that

noted

Motley

it

leadership

ness

United

the

that

stable—

states would be far more

politically, socially, and economjcally — if more of our citizens

which

should contribute to a continuing owned a piece of the United States
hlgh level ofcontinuance of . high in the form of stocks orthe - busiPerformance:
other se(1) The
curities ^representing
level

nesses

employment.j

of

He-said,

America.

solid,
more

to

attempt

consistent
individuals

on

hard
A

make

not

because he can-

or

This is
life, because

grades, too.

"A

sell

buying more

of an interest in theircontribution
own country is * the* greatest

1953.

.

fresher Bread

bread

to

this
facbut the purchase of
his audience stocks for investment has always
increased 8 been, and still is, too difficult for
million
too
of our/.citizens. There
28-is challenge to all who offer in
opportunities to make St
(«) A better distribution of in- easy for the American people to
future.'*
iui
Dr^
order to do that," he must
;^,
akery . Products caused by
•
stua;es three breads were come about tax. Mr. of a gradu- tinued, "these opportunities
because Motley said;* be offered for sale in more places
changes other than those resulting stia!ling studies, inreeoreaas were,
*
from the action of spoilage organ- baked at havini? a nrotein content "This arunn
the^ sanie"This argument is pure political and by more salesmen. Good hon;eme>,7Ji"«wi:r70Vu0—o tpnt
«t^When fr^sh bread of
jn ^ starch_gIuten mix_ bunk. If the government taxed all gstfiling wffljfavetoJring more

loaf moisture as near to the legal population In citing
as a
our economy,
limit of 38% as is practical."
t?r. Mr. Motley told
not preparation foi
noj
surprising, Dr. Bechtel exBread made of starch and glu.a£ the population
life
is
not
like
that.
One
of
plained, since staling has not been ten as the only flour components, million m the '30s, 19
in
many
America's great business leaders
defined in objective terms capable with the gluten between 11 and
.
: a"d would increase
a
today, James F. Lincoln of Cleve¬ of direct measurement.
17.5% of the starch-gluten mix- ml,''.on '? tbe
,9s: .. ..
. .
vestment
land, tells his workers he looks
"The
term
staling
indicates ture, was "comparable in every come to all in America.
In the buy a stake in their own
upon them as players on a team.
•'
uHyii mci.hds pid.ycia uu p vcrtiu,
r
©
—~—„
...
h
H madp of flour"< come to all in America,
in tne nuy a,?xaKe in ineir own
He expects them ,to play to win,'
^ 5
accePjan^e
Bechtel continued
For-the speaker's opinion, this- did not
"In
he finds

has

1954 long been the belief of sound busi-

and services to the American con- by people in all walks of life."
sumer. (Mr. Motley pointed out
Stating that nothing happeris
that it was not only the lead time until somebody sells something
judged to be a whole day fresher. in airplanes and tanks that had Mr. Motley said that this important
The test was repeated with the been reduced, but the lead time to fact was more true in the field of
Bechtel
same
result on
bread made of the consumer had been similarly investment selling than in any
flour
reduced in the consumer goods other sales field. "Surveys have
"Hence," Dr. Bechtel said, "it is lield-),
1
- always shown a desire on the part
changes
stalesis desirable to produce bread with
(?) The accelerated increase in of our people to own a piece of

re¬

on

country for a fast dollar.

containing 2%
higher crumb
moisture than a second bread was

the

as a

of

search

a

sympathetic teacher. Let no s*udiscouraged by work that

11

this free-

dom, and not in the sense of speculations
in the markets of the

using

bread

of

content was judged

can

fresh
in

future

loaves

level

income

that in recent years

1.

economy

what

that, can be made to our future
strength
and
stability.
Mutual
(5) The certainty of lower taxes funds, operated soundly and wisething different about it.
in 1954.
ly by experts in the field—the
The first problem studied was
(6) The accelerated pace of re- plan to permit stock purchases on
the effect of crumb moisture con¬
search and development which, in the installment plan—are the betent. It was found that after equal
a
shorter space of time, is bring- ginning part of this program of
storage periods, up to six days,
bread%'of''higher crumb moisture in£ new and improved products mass participation in our economy

and

kept

our

in

public has begun to

should be good for business,

in

matter

t

labor, and for agriculture, Mr.

lactors

matter how large—

As-

Motley said, in citing ten current

would be unaware there was any¬

bakery

longer

and
That is

find that something

in

move

lor

said,
participate

"'

So¬

products,

a

him

the

bread,

one

Let

no

-

that

cated

achievement is

A

year

keeping

America,

be." He stated
the American

m e n

T h e

,

no

those segments may

(2)
Peak
national income in
these
1953.
fractions instead of flour.
The
bread was required
to look so
^ Disposable income continuing at historically hign levels.'much like ordinary white bread
(4) Highest profits in history in
that
taste
test
panel ^members

indi¬

ciety,

other

an

t

April

Motley

H.

Arthur

'—

the

size

longer,

Chemical

starch

stickv)

ffrol^^he

American

the

D achievement for some¬
else; but I am pretty sure the
D student can excel in something.

only

American

Carbohydrate Division
of;

^

.

Director

Bechtel

oTthe

in

before

says,

all levels.

on

Laboratories

studies

graduation with all students

after

Way Oat

on

keeping bread

"A pupil gains con¬
fidence only when measured by
his own possible growth and not
his neighbor's brains."
I believe
this theory is wicked and unfair
to the student who must compete
wrongly

Welker G

Dr

of

else,"
for the
individual's development to "work
on his own level and compete with
for

s

of

publisher

by all segments of our economy,

in

e

States

York

economy—m the operation

*n

of

tailings starch
hull),
and
solubles
hun,
Formulas and procedures
Institute of Baking, Chicago, dis¬ (salts).
were
developed for making full
cussing the progress of research

competition." She pleads that "an
A achievement may be only a D
achievement

sociation

v

United

New

0f business

In-

Group,

•

Baking, tells chemists of progress in
bakery products fresh longer.

of

Institute

ideals

higher

a**

i
Annual

Central States

Bechtel, Director of Laboratories of American

Dr. Welker G.

"have no

than

understanding

or

school dis-

the

"This is the freedom to

Conference,

Bankers

think

that business¬
men

itnk
18th

ch eon

comes.

faculty

at

Stale Bread

"shock¬

to

the

a

Chicago,

writes that

she is

jn

n

very

^ ™ the world other than the people

York, who adij

the

importance of a
seldom referred to
thought of, and one which is
possessed by very few people in

dressed
1

way

or

ruPlications,

teach¬

school
er,

laxities

obvious

Stressing

freedom

ey^PresParade

,.n <r*'

high

a

ac-

prp„

Mntlpv

their

soon on

are

again."

. ident,

cipline. In fact, this "easing up"
may be a basic cause of the next
business
depression
when
it

teachers ques-

such

When

them.

selves and

a

in

America,

ciples of John
One

Dewey.

ciples,

„

school problem. You

a

fer from such lack of

"unpopular."
The school paper
the yearbook take cracks at

dis¬

these

'Jr. ~

family will always suf-

and your

and

of

than

more

high standards and
them, they may become
as
"good" teachers, but

known

comes

the

from

that when they

me

upon

enforce

One

view

*U1

States,

United

the

for

habit means much to every
reader of this column. It explains
why these high school graduates
do not get and hold better jobs.
This poor training handicaps your
children
throughout life.
It is

when it some

day comes,

points of view
which

sight

cording to Arthu

ing

the "big smash"

of

the two

you

smiling at students who need disand-passing all students,
This grow-

dustry today and will be a cause

big depression nor

a

deep or prolonged recession is

whatever their work.

1954 should be

says

ship of securities.
Neither

cipline

"easing up" is undermining all in¬

My recent article on education
brought a heavy correspondence
from all over the United States. 1
want

They say that they get promoted
faster by being
a good
fellow,

Publications, Inc.,

good for business, for labor, and for agriculture. Cites 10
current factors in our economy, and advocates broader owner¬

-

criticisms regarding his views on educa¬

Mr. Babson answers

Prolonged Recession in Sight: Motley

stil,

not

understood,

completeiy

after about

a

century of study

js

»

and the mmute
slacks

off,

are

o.

•

very

be
few

,

this

in

will

substitute
only a

a

There

sertt in.

of the players

one

where

world

one

nnp

.

>r

of

crime

and which contribute to

observed

high

present

its

schools.

gradual

The purpose

Don't

Teachers

1.

con-

Dare

has

been

to

loss of palpability
of studies of staling
seek

the

cause

of

a

six-aay

storage

penuu.

—

.,V,

,

7.

°

,

..

.

.7" ;

.

real reason we will have a better feeling of participation in what is
equal in freshness from 20 hours distribution of income and there-1 going on in our business econthrough 68 hours, Dr. Bechtel said. £are a broader base for the sale omy.
_
After this, differences developed o£
goods and services is be- ' Mr Motley _ told his audience
The three breads were

judged

have high employment :;that because of the

current favorfor

me&e
changes in oraei 10 extend
view is these manges in order to extend which became pronounced at 116 cause we wages."
While the and high
. >
/ > able economic factors, the field
hours and 140 hours.
presented by another high school the shelf life of bakery products."
(9) The increased; volume of investment selling is. wide-open-.
"e
T77" r
low-eluten
bread
continued
to
Tne increased volume or investment selling is. wiqe open-.
teacher, who writes:
We cater to
The fundamental test of bread
^ j
rapidly from 68 hours to 140 liquid assets-in the hands of the He stated that
mediocrity.
Only lip service is freshness, Dr. Bechtel pointed out,
hours
*ue bread of intermediate American
people. Mr. Motley widespread
paid to the principle jthat achieve¬ is consumer evaluation, based on
eiuten
content staled much less warned his audience not to be public m investment
ment is the basis for grades. The
such
subjective sensory percep.j,
Th
high gluten bread confused by the fact that con- ties in American business
truth is high schools are constant- tions as feel to the
fingers, feel wag jU(ige(j to be just as frash sumer credit is at an all-time do more to
lv dropping their standards. Since
students, along with many others
after 140 hours as at
in
our
oresent
in
The researchers concluded that sumer
is
an
present • snrietv
society, are not f7™,5uP,g
are
not

A

different

point

of

-

.

—

*

in his opinion this
participation by ; the

opportuniwould
stabilize the American

68 hours "

The'corresDondiM ^aboratorvtesi
Iaboratory tes'

anxious

work

to

for

rewards,

teacher finds it expedient tb give

lairly
good

good

marks

to

in

students,

years

The

all.

pcciiro

assure

turn, ' finding

ly

Then the downward

fail

to

operate

business."

Let

in
me

add

as

here

-

.

In

to

of

this

<.

giye.

This teacher finds

of the

much

is in the
home because too many parents
"think that discipline is all right
cause

as

long

as

it

difficulty

falls

fellow's kids!"

"would-be

the
eases

comes

on
_

—w<..i—

of

work

using

a

20 v members,

taste test
we

."

whicn
some

compares

favorably

Dr.

The study

0f the loss of moisture

from the

gtuten.

he described

Seaber to Manage New

Bechtel
was, un-

procedures,"

reported.

rigid.

with

physical and chemical ana¬

lytical

gell-becomes Hquid

After the third day,
bread became harder because

more

have the

Goodbody Co. Branch

>

v

(Special to the financial chronicle)

other

poi)plar

standards of conduct
academic1 achievement." - This




the depth

governed the size and

debts,

his of depressions and recessions. That
points, Mr. Motley stated that psychological factor is still pres-

(10) In making the last of
10

apparently the American economy
no longer behaves as it did in the
depressions of the '30s, the '20s,
and in 1907.
He said, "In those
periods all segments of the economy

time
tunc

were

depressed at the same

and
enw

the
mc

resultant

icounau

t

d

u,

j

,,

s
.

with

b
,

,

-

us,
,

.

public ownership of bluenmip

securities which usually pay dividends even though the market
j

of the stock may

fluctuate,

actions-

be
important thing in
offsetting: .the fear psychology

_

4—is^..

..

avoids issues, and be-* varying their* proportipps
in
popular-by not insisting bread.
Flour was broken«; down

up,

address/-J Mr.

his

"the "mosrImportant production and sales, pointing out Motley said, "Everyone recognize?

The result is-that

upon proper
or

days

conducted,

Concluding

MIAMI, Fla.—Goodbody & Co. \vere severe. Today," the Ameri-.' can
a .very,,
dertaken to obtain direct evidence
regarding the role of flourj com- haslnpened a branch office at 14 can economy has what I would
nnnoHtc
u..
.
\
.
.4
term gn abiiity to. make 'rolling which is usually touched off by a
teacher - ponerlts in the staling prfess by Northeast First Avenub, under the
readjustments.' .Even though cer- drop in market -prices or a drop

the
_

such

f°and that test, results can be duplicatpd,-even .after an interval of
several weeks, with a precision

—

the

teachers fail

our

panel

that

w—,

...

.

properly

of

liability, the speaker explained.

in

3,725,000 unemployed is good for
nation. ;Such unemployment
supplies the discipline which
'■*

when

results

the

have

cycle cannot
school

that

tests,

grades come with relative¬
little work, begin to let up.

good

high' He pointed out that con- economy and iron out the cyclic
credit not at
all-time swings than would any government program, however good or
extensive.

is
large
proportion to national indeveloped in recent bread staling twocaused, in proc- high in He urged business to conmeasure
bv°
separate
come.
for conducting sensory tests
^ During the tot two or tinue to use credit to increase
that
tVio
esses.
uunng uie iixs.i twu ui
..
i.

Teehnfnne=
Techniques

a

..

_.

manapprnpnt

.

nf Alfred- M

Seaher

manaSement of Alfrea M. b aber.
Mr.'Seaber ,was formerly Miami

segments of the economy may
through severe periods pf dis-

tain
go

i
into several fractions—gluten (the
protein - which makes dough manager for A. M. Kidder & Co. tress,

,o

al.

they

can

,

.

^ commodity pi*ices such anfbe1 ^
we
vnnonf- w*
^ cf.
.
..
stabilizethem- have just seen in recent months.
,

-

.

*111

caati. m

Number 5316

Volume 179

..

The Commercial and Financial Chronicle

.

great. Their actions directly affect
sales volume throughout the fieid

By RAYMOND

School

of

New York

Asserting it is unfortunate that
understood and
out

much

so

credit is

consumer

advantages and evils of this held of finance.

heavy responsibility of bankers

the

little

so

fantastic

ability

to

produce is recognized throughout
the

world

We

not

as

modern

a

only produce

miracle.

food

more

and goods per

than

person

other
country; we
continually

strive

to

is

a

duce

nized

of

has

been

Raymond

Rodgers

made

production

possible

the

by

distributed

are

more

equally among our people than in
any other country, we continually
strive to put more and more food
and goods into the hands of more
more% people,

including mil¬

lions beyond the seas (even if we
have to give it to them!).
You

gentlemen

of

consumer

credit finance the rolling
on

chariots
highways, the flying cab¬
skies, and the uniquely

our

ins in

our

American gadgets
in

our

kitchens.

financing is

of convenience

Your instalment

prime

a

contributor

basic

in

and

mover

creation

the

of the huge market on which our

prosperity depends.
Who's Afraid

I

,

of

Consumer

Credit?

Although there is a close rela¬
tionship between the use of con¬
credit and the standard

sumer

living of

of

country, and although
consumer
credit has long since
been the American "way of life,"
there
cret

a

still those who have

are

misgivings

though they
end

faith in it!

Even

widespread

of
real

use
no

It is indeed unfortu¬

nate that this is

little

se¬

rewards without

credit, they have

consumer

so

it.

about

reap

the

from

a

field which is

understood and

so

much

misunderstood.

for

years
as

condemned

source

ber

a

the

than

more

being

economists
a

hundred

consumer

"detriment

of wealth"!

the

than

disposable

in

reluctant

You

credit

to

the

remem¬

lenders

of

30

New
new

Manufacturers

credit

even

customers

articles

to

there

are

those,

credit

of

is

all-im¬

an

of

what

consider
of

that

$10

a

credit

earlier

Electric

methods
to
extend
more.
credit safely make the future of

credit

is

present
vision!

very

indeed

of the burden of

any

way

conceding

that

,

is

not

new.

It

subsidiary

tested

in

the

fires

of

be

or¬

time

*

has

credit needs of the

important

ture

for
been

adversity.

Regardless of business trend, the
be met.

credit

for

consumer

credit

would

bright

a

Remember,

month

this

million

corporation

ex¬

announce¬

Westinghouse

Corporation

.

be

may

the

an

supply." Consumer credit ganized to help its appliance and
in fact, become one of the radio-television
dealers
"obtain

consumer

'

must

:. V

areas

structure, as

income

to

satisfactions,

The

manufacturers

The

consumers

to keep
flowing
in

satisfactions.

matter,

only

our

current

flow of future
as a practical

The

produce

or a
It is,

even

$30 billion is

be served,
financed, and

to

be

new

become

The general

way

want

it.

mand!

Expanded
There

are

consumer

"those

wants

it

credit

contributions

has

to

the past, but that

expanded

further

our

i

say

made

lest

consumer

Consumer

Expanded
Consumer

in

it should not be

Can

How

that
great

welfare

Butcher, partner in Butcher

Sherrerd

and

Committee of the Bond
Philadelphia, announced
that the annual Field Day of the
Club has been changed from Fri¬
day, Sept. 24 to Friday, Sept. 17.
The outing will be held at the
Huntington Valley Country Club,
of

|

Credit Be

Safely?

credit

would be

expansion'
advantageous and sound

for

lenders

both

Chairman of the

Outing

Club

Abington, Pa.

~

who

Ghanges Outing Date
PHILADELPHIA, Pa. —W. W.
&

public wants it.

Administration

Phila. Bond Club

Keen

want it.

1940

the lenders, who feel that

and

Howard Bouton to Be
Partner in Verace

borrowers.

credit, the servant, become con¬ Now this does not mean overload¬
Howard R. Bouton on May 1
sumer debt,
the master. In reply, ing present borrowers; nor does
back
merely
because mortgagp I
will be admitted to partnership in
say to you that it is not only it mean an open-door policy for •
credit went ahead, the fact is that
Verace & Co., 52 Broadway, New
desirable to expand consumer deadbeats; nor, above all, does it
such a comparison is misleading.
York City, members of the New
mean
nursing borrowers who do
credit, it is imperative!
In 1939, 41% of the dwellings of
York Stock Exchange.
Mr. Bou¬
Consumer credit must be ex¬ not show proper regard for their
this
ton was recently with Sutro Bros.
country were owner occu¬
panded if we are to avoid what I obligations. On the contrary, the
& Co. in the foreign bond depart¬
pied; today, it is 60%. We have call
"goods inflation." In other current slow downward trend of
ment
and
had a veritable revolution in home
prior thereto was a
words, an excess of goods in rela¬ business makes it inadvisable to
partner in Roggenburg & Co.
ownership as a result of the utili¬ tion to demand is inevitable un¬ postpone what
you feel you have
On April 30 Joseph Weinberg
zation of instalment financing in
less we expand and deepen our to do in such cases. As you know,
will withdraw from partnership
the mortgage field. These homes
markets. In short, our most basic in a business readjustment, good
in Verace & Co.
have been sold on the basis that
economic problem is to increase credit,
relatively speaking, gets
it is cheaper to own than to rent;
consumption so that we can keep better; but poor credit gets worse.
that all monthly payments includ¬
our
greatly expanded production So, the sooner you separate the
ing the mortgage are no greater, facilities busy. For example, it has sheep from the goats the better.
and often are less, than monthly
How can
consumer
credit be
been said that our automobile in¬
should

credit

consumer

be

held

Lester, Ryons to Admit

'

rent.

;

could produce 10-million
Although such home owners cars a year, but that the new car
cannot reduce their financial bur¬ market can absorb only about half
den by moving to cheaper quar¬ of that
quantity under present
ters

,

dustry

renter^ can, the fact re¬ conditions. Obviously, if we are to
mains that such mortgage debt achieve the highest standard of
does not increase their financial living our competitive capitalism
burden except to the extent that can produce, such unused capa¬
the monthly payments are greater city and similar capacity in other
than rent would be. | So long as lines, must be fully utilized.
it is merely a substitution of one
Consumer credit aids in such
fixed charge, mortgage debt serv¬ utilization as it reduces the post¬
of
ice, for another fixed charge, rent, ponement
postponable
de¬
there
is
no
increased
burden mands. It is thus indispensable
against which a valid comparison in a country with such a large
can be made!
of
optional
buying.
/ proportion
I could go on for an hour with Nothing could be more serviceable
in getting people to live better
other figures to which some one
as

with alarm,1 but why

is pointing
waste time?

You

can

scare

peo¬

ple, especially credit practitioners,
with figures to prove a conclusion
after

a

one-semester

course

in

and

consume

more.

In

view

we

Lenders should be able to lend

safely because they now
a
great deal more about
credit. More knowledge
and more experience should keep
them from getting jittery and re¬
ducing volume as some lenders
did at the beginning of World
War
II.
Expanding
consumer
more

know

consumer

credit

extension,

as

matter, is largely the problem of
closing the gap between what
man

is

needs.

entitled
With

to

and

what

become

growing experience,:
more

can

skillful in rais¬

ing this entitlement. To increase
this is the point to at¬

Chairman of the Federal Reserve

tack.

.

■:

^

,

;

Greater stability in our econo¬
my,

the

Partner

Lester, Ryons & Co., 623 South
Hope Street, members of the New
York and Los Angeles Stock Ex¬

changes,

on

April 22.

Mr.

Scott

has been with the firm for many
years.

Two Partners for

he

both lending officers and borrow¬
ers

as

LOS ANGELES, Calif.—Charles
C. Scott will become a partner in

practical

a

trfr volume,

derive real encour¬
agement from the assertion of
Thomas B. McCabe, when he was
this,

Scott

expanded safely?

responsibilities assumed

Oppenheimer Firm
Oppenheimer, Vanden Broeck &
Co., 40 Exchange Place, New York
City, members of the New York
Stock Exchange, on May 1 will
admit Stephen A. Lieber and Ger¬
ard A.
Wertheimer to partner¬
ship. Mr. Wertheimer is manager

by our government under the Em¬

of the firm's research department.
people are Board, that "instalment financing ployment Act of 1946, and in¬ Mr. Lieber has been associated
is subject to a growth force that
creased social security all make with them for a number of
do it even
years.
is basic and persisting and is be¬
consumer
credit extension safer
without such a course!
But it
takes honest effort and objective coming a more important element than in the past—and it must not
in the economy."
be forgotten that the loss record
thinking to dig out the real truths
Consumer credit must continue of experienced
figures can reveal.
Renders in the past
to expand to meet the needs and was unbelievably good.
So, let me just say that, in my
opinion, you have by no means aspirations of consumers. Other¬
The main reason why consumer

statistics.
so

remember

You

who

more

even

mortgage debt of $65 billion on
one- to four-family houses. With¬
out

American

Although the vast outpourings of
our unprecedented production fa¬

and

after

too high because

miracle of American distribution.

cilities

will

consumer

ment

the

and

obvious.

money

income

and

consumer

the

of

of

amount

Today,

Lit-

erally,
miracle

the

among

economic

strength.

credit

bank

in

System, using no
consumer
credit
whatever,
the
possibility of further expansion is

those with courage and vision.
With business slowing up, the

pected,

Consumer Credit Should Be

im¬

distribution to
our

.

that

indication

by

.

re¬

-

portant con¬
tribution

debt

sales

as

Survey

Federal Reserve

dealer and the retail levels. As

financed

consumer

days ahead,

family units, according

our

the Consumer Finance

portant factor in sales at both the

consumer

indirectly

or

be

25

of the Board of Governors of the

increases, intervention by

widespread.

know

The expansion and

.

will

sure

satisfactions
(in fact) President Eisenhower hajs
remaining after those
unrestricted consumer
per capita large volume. So, don't try to put urged
America on a cash basis — our credit).
standard
of
\
living expenditures
Let it not be said that lenders
for food, clothing, and shelter at economy just isn't built that way!
did not prove equal to this de¬
today's prices).

the

is

those,

are

though it is little

taxes

little recog¬

even more

..

am

in our entire inventory and .retail, sales fi¬
the decisions nancing in areas where credit
among the lenders, who feel that made in this field affect not only facilities are
inadequate"!
consumer
credit is too high be¬ the distribution of goods but also
The pressure for consumer
cause
the total has reached the the volume of bank deposits.
credit
expansion
can
be
sum¬
Consumer credit in America is
prewar ceiling of 1940 of 11% of
marized in this fashion:
disposable
income
after
taxes, more than the mortgaging of fu¬
there

personal

and

Far too

more.

directly

I

half of
to

has,

Today,

(i.e.,

still

more

part of the
outstanding
is

the

more

of
"A

Board:

which

manufacturers

William

Chairman

Reserve

risks; and the article

to most of you!

sistance

pay¬

significant factor in fluctua¬

tions

half its peak prewar relationship
to discretionary spending power

pro-

of

In

econ¬

of

means

words

contraction of

safely.

even

any

Federal

bank loans.

most

America's

"the
the

In

either

field, and holds it is imperative consumer credit should be
expanded, since our most basic economic problem is to increase
consumption. Reveals his views on how consumer credit can
be expanded

by

substantial

Points out

risks,

directly or indi¬
commercial banks, af¬

calls

credit

grantors of credit in this

as

news

extended

McChesney Martin,

misunderstood, Dr. Rodgers points

"Reader's

credit

ment."

University

February

bank which special¬

a

implies that real banks don't take

omist

Administration,

in

as

their
actions, especially today with such
a
large proportion of consumer

fect the volume of what the

Banking,

Business

izes in bad

described

distribution. In addition,

rectly

RODGERS*

Professor of

Graduate

Evil

or

Digest"

of

Consumer Credit—Infinite
Power for Good

1(1685)

bright

In fact, some

they

can

Sartorius Go. to Admit

Hilton Levine to Firm

wise, unsatisfied demand will de¬ credit can be expanded safely is.
Milton Levine will become a
credit as being "so injurious to zation of instalment credit. Twenty velop and the government may the great increase in real income.
partner in Sartorius & Co., 39
move
in, as it has in mortgage of our people. Measured in dollars,
public morals as to be wicked and years from now, you will look
Broadway, New York City, mem¬
reprehensible"!
You remember back and wonder how you could credit.
of constant purchasing power, in¬ bers of the New York Stock Ex¬
how a high officer of a great sales have been so slow and hesitant in
Consumer credit must continue come per person is almost 50%
change, on May 1.
Mr. Levine
finance
company,
at this very developing the full potentialities to expand to keep nonbanking greater than in the late '20s, and_ has been with the firm for many
Conference
last
intervention to a minimum. The is even up 12% since 1947. Putting
year,
"viewed of consumer credit!
years and is in charge of the up¬
with alarm" your lending on auto¬
whole history of consumer credit, it another way, in 1929, a boom town office at 1422 St. Nicholas
Responsibility of Credit
even in America where it has had
mobiles; how he termed some of
Avenue.
year, only one-third of our family
Grantors
its greatest development, has been units earned more than $3,000 a
your
instalment
lending plans
Nearly one hundred years ago, too little, too late! Demand on the year in today's dollars. In striking
"nonsense," and asked "What's
To Form Schatz Co.
the
next?"!
c
great Daniel Webster said: part of our people for consumer contrast, today, nearly two-thirds
"Credit has done more to enrich credit has always been ahead of of all family units earn more than
Today, there are those, even
Sydney S. Schatz will acquire
mankind than all the gold mines the lenders. This in indicated by $3,000 a year. But quantitatively,
among the lenders, who believe
the New York Stock Exchange
in
the
world.
It
has
exalted the continued entry of new lend¬ today 32 million families earn
that the total consumer debt is
membership of the late Bernard
more than $3,000 a year; in 1929,
too high, eveq. though it is less labor, stimulated manufacture, and ing agencies, until now even the
credit unions hold over $1 billion there were only112 million fami¬ L. Mensch and on April 22 will
than 5% of total debt and less pushed commerce over every sea!"
In the same fashion, today con¬ of the $21.5 billion of consumer lies earning more than $3,000 a form the New York Stock Ex¬
than 10% of private debt.
instalment debt. This is 10 times year, and that only after revalu-.
sumer credit has an infinite power
change firm of Schatz & Co.,
♦An address by Dr. Rodgers before tbe
the amount they held in 1939; and ing their income in terms of the
for good, or for evil.
with Leah L. Mensch as limited
National
Instalment
Credit
Conference
The
responsibility
of
credit they are looking for more busi¬ 1954 dollar.
of
the
American
Bankers
Association,
With such income levels, and partner.
grantors in this field is indeed ness! In fact, a credit union is
Chicago, 111., March 24, 1954.
years

ago

who blasted consumer

i




reached the top limit in the utili¬

■

The Commercial and Financial Chronicle

..

Thursday, April 15, 1S5€

.

(1686)

.26

virtues

its
and

Period of Decision

permit

President, United States Steel Corporation

every

years of our fathers" and their moral,
political principles, Mr. Hood points out the task
ahead of us, a hundred and seventy-eight years later, is to re¬
establish that same understanding of self-control, self-direction
and self-reliance. Sees need of reviving individual initiative

visted

mine

ago

years

lodge

a

which is famous for

has

who

the

a

member

of

political expediency is
cepted as a "necessary evil."

we

local guide

a

of
birds

knack

uncanny

finding
and

other

small

game.

A

clergyman
this

from

country

was

visiting

the

lodge

t i

same

and

the

at

m e,

nat¬

was

urally anxious
to

get

few

a

the

birds

in

short

time

could

spare.

he

The guide was
Clifford F. Hood

his

trying
best.

For two

days they tramped the woods to¬

returned

gether,

but

handed

each

of

band
the

a

merce

doing

and

industry

were

moti¬

desire to make private

found freedom.

eve¬

lot

a

was

capitalism a living, working,
growing system. Individuals were
motivated by the spirit and dy¬
namic
promise
of
their new¬
In every

aspect of life, men who

guided and set standards were de¬
voted
to
a
set of
ethical and

replied,

his gun at them."
We have been

That

vated by a

"I wouldn't
say he was a bad shot, but it is
amazing how the Lord protects
those birds whenever he points
he

"Well,"

of

moral

their

had

that

principles

beginning in the bedrock of re¬
ligious training.
It was not a
question of what was legal, but
rather what was right.. In one's

home, in his business and in his
government, ther<* was only one'
set of moral values to decide any

hunting in this nation, during the matter. Every question was meas¬
past few decades. We have been ured against a single standard
hunting the answers to some very which
distinctly
separated
the
vital
questions and problems—• just from the unjust. This stand¬
some
economic, some spiritual. ard was in strict keeping with the
And it is amazing to me how the
principles laid down by the found¬
Lord has protected our liberties,
ing fathers, who believed and had
our personal freedoms, our oppor¬
stated that what is morally wrong,
tunities for individual happiness is also
politically and economi¬
from shotgun

blasts of misguided
progressive thinkers who tried to
make a religion of secularism and
governmentalism. But I wonder
how long He
tect

is

that his¬
present
period of decision. We
haVe reached a plateau

quite
will

torians
times

a

seem

to

in
of

will continue to pro-r

from ourselves.

us

It

probable

call

national

our

taking

stock

complishments,

a

these

history—a' time
of our past ac¬
time for realign¬

cally wrong.
One does

have to

not

read

too

the writings of Jef¬
ferson, Adams or Washington to
know that they believed that the
deeply into

sole purpose

of organized religion
is the betterment and final adjust¬
of

knew

that
no

laws

can

system

fashion

and

nation,
National

a

size.

its

of

or set of
completely

of

conduct

the

regardless

They

governmental sys¬

no

police

tem,

control

individual.

the

ment

ing our sights on the goals which morals, national ethics have their
still lie ahead.
Many of the seem¬
ingly brilliant short-cuts and lib¬
eral ideas attempted during the
past generation are badly tar¬
nished already.
To some of our
citizens, the effect is one of dis¬
illusionment.
The

V

of

Years

Our

Fathers

Out of the great mass

political,
at

•issues

"

of social,

economic and spiritual
hand, there emerges a

basis in the individual and how he
is prepared

which

immediately

existed

in

the

following

birth
there

a

responsible life.

through sound religious training.
Another way of putting it today
is

that the

individual

must

enter

adult life with the moral equiva¬
lents

of

steering wheel, brakes
and speedometer.
a

a

was

nation.

Then,

as

now,

inflation and there

was

dred

sub¬

not contributed to

ful central government.
But

outside the doors

pendence Hall, down
of
Philadelphia and
the land,

there

was

of

Inde¬

the

streets

out

across

also

an

atmos¬

phere of hope and impatience to

with the job." There was
a great and urgent need for man¬
ufactured goods. The population
of
the
country was expanding
rapidly and new homes, new

"'get

on

talk

by Mr. Hood at the 10th An¬
Corporate Communion Serv¬
ice
of
the
Episcopal Diocese of Pitts¬
burgh, Pittsburgh, Pa., March 27, 1954.
*A

nual

Lenten




eyes

our

it is time

But

we

took

interest in sane

more

time

belief

little

a

It is
turned from the telescope

we

living.

of introspection.

well de¬

Our future progress may

mankind in
ner.

But

as

a

betterment of

a

true Christian man¬

a

and faith in individual initiative?

I

When

much upon our pro¬
technological genius,
rather, upon our moral aware¬

pend not

so

whether the

der

tion

ever

and

whether

is

still

present genera¬
this parable,

of

heard

initiative

personal

virtue.

desirable

a

More

often than not the modern hero is
prone

citizen of this land,

to be the "slothful servant"

could

recommend, this

not

its inroads into today's moral mar¬
ket.

From

religious

our

institu¬

tions must continue to come

far

a

product.
It must be a
product of exceptional ability and
endurance which prepares indi¬
viduals to be Christians fully ca¬
pable of applying Christianity to
superior

their

a

and

individual

group

ac¬

The Christian church has

tivities.

superior quality in its product

and

human being is

every

tential

All of

customer.

po¬

a

need

us

product and to bring its bless¬

this

in

history

.

life

to

growth of
What
that

our

has

material

faithful

are

church

choice.

they

instances,

of

members

their

of

the

In

many

of

students

are

church and Biblical history. They

practice daily reading of the Bible
sections

commit

and

But

memory.

they

fully

are

it

of

to

if
that the same
permits them to
often wonder

I

aware

which

freedom

enjoy the religion of their choice,
is the same freedom they stand to

become

of

the

goals

unit,
who

how

yet

Psalm

have

the

native
and

the
"D a s
Kapital"? How many are familiar
with the philosophy and theories
of
John
Maynard
Keynes, the
British

economist

fluenced

who has

economic

our

decades?

recent

in

of

in¬

so

reasoning

Familiarity

thinking soon
realize that you

to

one

cannot reconcile Communism with

Christianity, that there is no simi¬
larity between the parable of the
talents and Keynesian economics.
"If America is to be run by the

people,"
said,

think.
on

And

Hoover

has

should

must
not need to put

do

we

sackcloth

Nor
a

Herbert

as

"it is the people who
ashes

and

our

minds work like

which

sundial

sunshine.

Our

think.

to

t

records

hinking

only

must

square

against

history,

some

men

some

principles

which

this

nation

is

dedicated."

while

Yet

*' ■'

months

ago

ant

article in one of the national busi¬

the

discussed

periodicals

ness

being given to
businessmen of
the nation.
It was pointed out
that much of the impetus for this
emphasis

present

religion

the

by

revival

so-called

is

to

Achieving Moral Awareness.

and
sane

a

telling

me re¬

12-year-old boy who

to the Library of Congress

requested two books, one on

living and the other

on space

churches

have

As

sales force.
steel

found

be

good authority—you

on

may

have

and

you

may

facilities

excellent

have

product of superior qual¬

a

ity,

gentlemen,

but

succeed

unless

sell

Christianity

is

I

sup¬

lands, it continues to grow in our

today

churches.
needs

Religion—Your Business
in

business

principal

our

must

be

only

means

respects, is
commodity.
In

many

business

quality,

concern

for

that is the
of making "steady
In religion, too, it is

customers."

in

called,

God

as

religion,

Christian

The

dy¬
unremitting:

that

and

forceful

It

efforts.

their

are

sales¬

needs

who believe in their product

men

and who possess

qualities of lead¬

ership developed to their highest
point in the pursuance of one's?

daily

activities,

jit

needs

quality that matters.

with

know-how

who

can

of

duce

our

The quality
religious teachings today,

this product

while commendable, has not as yet
drawn those who religiously avoid

Christianity
dvery mind,

Sunday worship.

ern

It may be that

this group needs this insight more
than the faithful.
I am certain

that

Bishop Pardue and his col¬
agree that the mar¬

leagues will

ket is more competitive than per¬
haps

at

other

any

are

a

today,

with

living.

Isaiah's

therefore, has be¬

job,

job and the iob of every"

individual

possessing the fire and
and the ability of

the enthusiasm
the

salesman.

true

You

men

of

number of old

and

can

have

new

its

heart,

every

aspect of mod¬

come your

been

refur¬

business, you

find in this selling job a

lenge that will
other

any

more

chal¬

than match

might undertake.

you

trade. The great¬

By Precept and Example

est of these competitors is secular¬
ism

every

young people with
determination and vision and ideas

which
a

of fundamental

into

our

shop-worn products on the market
bished for

men
intro¬

in

time

history.
There

can't

You

clergy alone.

of

champions

namic,

cannot
out and

old, so He calls
the laymen of our

upon

nation.

a

get

you

that

believe

Isaiah

Religion,

you

individuals.

as

upon

like

member of the

a

industry, I can give it to you

leave the job to the

many

by-products.

Someone

has

said:

"One

man

trickery of its present
peddlers cannot hide the fact that

with courage is

secularism is still the

could do

by precept and example.

Suppose

we

But all the

uct that leads to

An associate was

of the

"vanished"

communist-dominated

in

terial

wrote

have

their

of

most

than 80%

more

pastors

esti¬

is

been destroyed.

Twenty-third

theories

It

Christians.

that

mated

explored

ever

soul-effacing

our

hundred

six

some

were

thousand

individuals

many

recite

can

of character? What has become of

emphasize

there

ity and freedom have come down
to us as though they were one

cently of

thrift, for instance? We

complete. Still far from

shores, but yet a little closer than
China, stands North Korea where

pressed

resources.

nation

about

lose under collectivism. Christian¬

aspired to for so
many years and which were con¬
sidered fundamental to stability
our

speedometer.

>.''

four

or

.

.

.

to

spiritual side of our
match
the
phenomenal

a

■"■

Three

.

.

of

the

life.

with brakes, a steering wheel and

The proof of the inseparabilty among the businessmen of Pitts¬
this principle was
This was especially pleas¬
of Christianity and freedom sur¬ burgh.
forsaken by the people for one
rounds us on all sides.
Wherever ing to me, for one naturally likes
which said, "Sit down and I will
freedom has retreated before the to see his local business associates
bring it to you."
being recognized for leadership in
What has become of our belief onslaught of Communism or its
such an important activity as this.
in the inseparability of religion equivalents, the actual practicing
of Christianity likewise has lost
and freedom? The religious con¬
Of Churches and Challenges
Eastern Europe is a God¬
victions of our forefathers found ground.
It is encouraging to realize that
less realm, engulfing millions of
expression in the government they
these are only two examples of
previous generations of
established
and
set
in
motion. people,
whom were God-fearing and reso¬ the many which might be men¬
"All men
are
endowed by
This nation, however, is
lute in their convictions.
Western tioned.
their
Creator with certain
un¬
a vast and
many-sided land.
Its
Europe teeters and totters on the
alienable rights
among these
edge of a precipice from which 280,000 churches comprise the fin¬
are life, liberty and the pursuit of
est equipment for producing
there may be no return. In China,
ttyis
happiness." Yet many of our citi¬
where two thousand missionaries, superior product of religious in¬
zens would trade these God-given
spiration. But what the Christian
even as late as 1949, were winning
rights for a mess of pottage they
minds to Christianity and teach¬ religion needs today is more ef¬
have never seen.
fective
merchandising and this
ing the value and dignity of the
A great number of our citizens
will call for a greatly expanded
individual,
suppression
is
just

preserve

con¬

to speak,

and

when

periods

vitalize

its

will be equipped, so

we

we

those

were

ernment

with

maturity

rapid recovery of good health. It
is an excellent example of the
fundamental value of religion to

when

that

so

ings

reach

spiritually,

preferably through our churches,

'

recorded

lesson of
of gov¬
and morals, if we would
the rights and dignity

concerned

trained

be

must

Being so adjusted
who buries his talent because he
we will not go speeding irrespon¬
is worried about what he
calls
sibly down the highway of life
"security." The world progressed menacing the lives,
well-being
for centuries in the Biblical prin¬
and possessions of our fellow citciple of "seek and ye shall find," izcns
and the moments of retrogression
The World About Us

tinued success, I would be among
the first to renew, encourage and

vitally

ductive and

youth

a

was

brings

The task ahead of us, one hun¬

and
seventy-eight years
later, is to reestablish that same
stantial government debt.
There understanding of self-control, selfdirection and self-reliance. As a
were social inequities and politi¬
member of American business, I
cal jealousies. There was uncer¬
would be among the last to deny
tainty, doubt and confusion in the
that our spectacular progress in
minds of many people.
And in
the areas of technology, research
some quarters, then as now, there
and manufacturing techniques has
was a strong demand for a power¬

as

The
of the nation are on the stars,

to the microscope

with such perverted

Of Thrift and Integrity

years

our

for

They knew that he must come to
maturity equipped with self-con¬
trol and self-discipline gained

national situation quite similar to
that

of

What has become

was
America
in

part, by patriotism and faith in
the ability of men to use, and not
abuse, their freedom. Men of com¬

good shot, Pierre?"

a

ac¬

Of Initiative and Freedom

everything

of

more

needed.

said, "Is

of tea, she

cup

parson

emptythe

a

I

v

product called secularism but at
the same time, we cannot ignore

to those who have denied
themselves may require on the
attending but
the late 1700's, and in many re¬ Sunday School in a small country ness—how we use what we have part of all of us more zeal and
imagination in the marketing of,
church in Illinois, one of the ear¬
spects, that is America in 1954.
individually, how we apply our
it.
liest lessons I recall was based on economic
Those who took the reins of
strength individually to
Religion in Life
the parable of the talents and the our
spiritual growth. And as the
leadership at the founding of our
At Philadelphia's Episcopal Hos¬
I nation turned to men of moral
nation
were
individuals
whose "good and faithful servant."
remember how impressed I was
pital, for example, religion is be¬
roots were planted in sound insti¬
courage in the last quarter of the
with the significance of that story,
Eighteenth Century, so it turns to ing used hand-in-hand with med¬
tutions, such as the home and
and it always seemed to me that
its churches, its clergymen and its icine and surgery.
Through the
family, the church, the principles
it had
special meaning for the Christian laymen in mid-Twen¬ Chaplain service in practice there,
of constitutional government and
genuine, down-to-earth common people of this land. In the hurley- tieth Century. Our Creator gave basic Christianity is helping in¬
heedlessness, us Christianity and freedom as in¬ dividuals to dissolve fear and to
sense.
Representatives in govern¬ burley of today's
ment were motivated, for the most however, one would almost won¬ separable parts of the whole.
We gain the faith one needs for a

cities,

second day, as the
was fixing her hus¬

the
guide's wife
ning

On

time.

is

boy who mirrors his times.

business enterprise.

a

Yet

more

friend of
in Canada

There

our

,

Several

that."

interested? in

integrity? We while we have yet to achieve an
businesses on the understanding of earthly human
principle that honesty is one of virtues, and especially how to live
the first prerequisites for every together.
operate

took a little more interest in
religious leadership by both
precept and example.

Says it is time

living and exercised

sane

his

What has become of

ethical and

and freedom.

child.

and

woman

man,

concluded

boy

by1 saying, "If I can't have
both books, please send me the
one on space travel, for I am more

one

some

averages

The

letter

thousand, six hundred dollars for

discussing "the

In

Federal government to

our

presently

travel.

people

young

our

plunge the nation into a debt that

By CLIFFORD F. HOOD *
•

to

fellow- citizens, and then

our

prod¬

same

spiritual and

bankruptcy.

The

ma¬

main¬

tenance costs, of course, are more
than the average man can afford,

and he cannot depend
an

ever

by

lead to

peace

upon

it in

Neither does it
security as measured

emergency.

of mind.

with

me

potential
this

on

of

a

majority." Think,

what

were

this

each

to

you

measure

gathering

morning against

greatest events in

of

some

the

here

of the

the

history of
man.
Only a handful of Ameri¬
cans guided us through the Revo¬
lutionary days.
Perhaps a thou¬
sand

or

so

brought King John to-

Number 5316

Volume 179

The Commercial and Financial Chronicle

...

(1687)
his knees when the Magna

wrested

was

him.

from

Carta

Christ,

Himself, with the then known
world against Him, prevailed with
only 12 disciples.

Here, this morning, are some
1,500, and each of you with the
fire of conviction and

courage

in

hearts, can become an over¬
whelming and dominant force in
keeping Christianity and freedom
your

alive
that

this

on

continent

and

one

eventually will penetrate and
the

disperse

darkness

been closing

in

that

has

mankind.
Remember with me, if you will,

a

about him the

That

things.

the

upon

know, fears

we

actions

of

new

Caesars and the secularism which

these Caesars
He

feared,

It

will

find their way

preach to mankind.
that

do,

we

as

the

be

if

good

into

every

they

Ameri¬

heart.

can

Paul's words

fast

free

in

Christ

be

and

these: "Stand

were

therefore

wherewith

the

liberty

hath

made

us

not

entangled again
with the yoke of bondage.',
Is it too

or

was Paul,
a
He knew the

internal

financing,

late to

it

too

down from the

the

from

up

late

it

spot

stand

bring the old-

to

once

cellar?

give it the choice
enjoyed in almost

home—a spot today

every

Is

less

no

prominent than the TV set.
If it
is, gentlemen, then it is very late
indeed.

the

answer

to

Just how late is it and what

you.
are

leave

I

going to do about it?

you

bilize

the'

rate

of

through the business cycle. Like¬
wise, the apparent insistence upon
a
higher marginal rate of return
from new: capital, goods than that
realized upon the firm's present

Finance

and

Banking

Develop¬

Aid Investment Regu¬
larization

ments

Jacoby and Weston believe that
changes in our banking system

Hicks

since the

tial

substan¬

effectively

can

Utilities Corp.

United

and

outweighed by prospects of quick profits

are

the increasing

to

Emerson

v

- •

But

which they must weather
as

they can."

cure

--

best

leading

nation's

the

of

of

Chamber

of

reau

possible,

>

be¬

lieved that the

>

long-term ad¬
vantages
i

n v

of

v

estment f

regularization
would

not

Donald B. Woodward

be

enough to outweigh the prospects
of quick profit on boomtime out¬
lays and the uncertain prospects
of

depression-timed investment.
realize

can

the

advan¬

tages of contracyclical investment
evaluated

are

Thus

think

of

on

Research

and recently published
by "Princeton University Press."

Action to expand investments at
time when business contraction

threatens is

an

important

an

way

to maintain economic

stability and
provide for economic growth, ac¬
cording to Melvin G. de Chazeau,
Cornell

University,

who

was

Chairman of the conference. Reg¬
ularization means, he said, that
"the individual firm will program,
schedule, and execute capital out¬

lays that

in the best interests

are

of the firm without regard for the

temporary state of the market."
Investment regularization was not
advocated

by

the

substitute

for

governmental

conferees

tracyclical action, but as

a

as

a

con¬

supple¬

ment to it.

is

a

cyclical
become
against

believes that there

chance

good

that

investment

contra-

policies

important

an

depression.

terms of

cial

-i

may

ness

today's

the

what

basis

more

conviction

managers

that the

have

some
a

which

they

responsibility,

natural phenomenon




aver¬

of

the

60%

of

some¬

business

expenditures." Anal¬
best available esti¬

Hastav said, indicates that

"the fluctuations of investment bv

as

may

than

fixed capital

large

rather thari

the

search, "large firms make

avoidable

for

"On

National Bureau of Economic Re¬

so-callfd business cycle represents
waste

stabilizing force in busi¬

age," said Millard Hastay of the

said

among

a

investment?

safeguard

On

"wide

large enough to fi¬

propensity

Jacob^*

their

ularization in
Columbia

ability to

Reserve credit

to

policies

of

pro¬
on

a

invest¬

regularization, and Benja¬
Higgins of Massachusetts In¬

during years of doubted

annly

that

managements

realistically

Another important step toward
investment regularization, Jacoby

move

NAM

very

general

use

influence

said, would be "more
of systematic

Viewpoint

proce¬

that

c

profit

rates

and

is

high

Many conferees suggested that
government might encourage
regularization by varying corpo¬
the

able

income

tax

rates

and

allow¬

depreciation

deductions to
stimulate investment during
slumps
and
restrain
it
during

as

as

tee

of

nancial

jeopardy

soundness

a

guaran¬

to

of

the

the

fi¬

enter¬

prise.
Nothing which subtracts
from the security of the company
can add to the
security qf its em¬
:

the

saw

job

of

employee, Mr.

end

results

long-term financial

available

consider

R.

Miller

work

and

'

hiring

NAM viewpoint
guaranteed annual wage,

com-

employers had
wage

they

to

commit¬

wanted

to

newcomers who would
be employed under normal opera¬
a

free enterprise economy

would be deprived of employment

opportunities."
As for the consumer,

the

repre¬

Thus

tion of

steady

if

annual

whenever

ments

hire.
Kenneth

a

mitment," he pointed out, "a com¬
pany will hold its employee force
to a minimum. Fewer jobs would
be

_

a

new

as

opportunities.

each

sents
•

..

steady pay."

Outlining

major

"When

and

goal

through

lessening

"unsound approach to the com¬

mon

by the existence of

ness

Miller

of

security"

essential

the

annual wage to the

an

an

reward:

As the effects of the guaranteed

priority

target,

and

Guaranteed Wage

on

a

"illusion

risk

ployees."

CIO-

some

re¬

suppliers of funds
of funds.
This is thus

participation of all
parties to the problem."

in

e-P resi¬

unions

Investment Regularization

influence

users

demonstration of how

a

appear

Tax Policies Can Encourage

of

government,

Speaking at the Annual Dinner

V i

expectation

Action in this regard would
to
come
from
all
parties

have
that

could

far

the

creasing
ward.

University, Montreal), dis¬
fundamentally
'sound'
and , if they * act on this cussed measures adopted in vari¬
premise, they will be enabled to, ous foreign countries.
Joel Dean of Columbia Univer¬
apply more lenient credit stand¬
ards during
cyclical depressions sity was one of the conferees who
thev

problem,"

-

volved in such investment and in¬

stitute of Technology {formerly of
McGill

of

fundamental

slump.
This can be
accom¬
plished, it seems to me, by cut¬
ting the risk believed to be in¬

au-• ment

min

for¬

is

a

encour¬

private

age

"The

surveyed

measures

investment

-

Woodward said, "is how to stimu¬
late this form of speculation in

Albert G. Hart of

University

business

looking and, in a nondeprecatory sense, speculative. :

relation to» techno¬

logical change:

"If commercial, government

by the central bank
of

all

ward

Mr. Miller

said that all the costs of the guar¬

antee would filter down to him in
but also pointed out the on the
nance
a
substantial
amount
of
practical difficulties of adminis¬ Mr. Miller said that while such the form of higher prices. "Im¬
contracyclical investment. "Large
demands had strong emotional ap¬
tering such tax policies.
position of higher labor costs for
corporations accumulated substan¬
peal to employees and the public, work not performed
woufd exert
tial cash balances during the early Role of Inventory Fluctuations in
the
guaranteed
annual
wage upward
pressure on
prices," he
1930's," said Neil H. Jacoby and
Business Instability Is Studied
would, if adopted, have adverse said. "The so-called security and
J.-Fred Weston in their study of
The role of inventory fluctua¬ effects
on
the
national welfare
purchasing power guaranteed to
financial policies influencing reg¬
tions in aggravating business in¬ and economy as a whole.
the small but powerfully-organ¬
ularization. "Taking multiplier ef¬
A sounder approach to the goal
stability was analyzed by Moses
ized
group
of
union
members
fects into account, their use of an
Abramovitz of Stanford Univer¬ of steady work and steady pay would be achieved at the expense
investment
regularization policy
sity and the National Bureau of was seen by Mr. Miller in the of other groups."
might have gone some distance Economic
Research, who said that widespread, growing campaign by
In citing employment stabiliza¬
toward moderating the decline in
"both the government and the na¬ industry for employment stabili¬ tion as the "far more realistic way
business capital formation that oc¬
tional banking system ought to zation.
"Great strides have al¬ to achieve steady work and pay,"
curred." Both Jacoby and Weston
use their influence to avoid price
ready been pade by industry in Mr. Miller described the methods
were
at the University of Cali¬
changes likely to precipitate spec¬ regularizing sales,
production, already formulated by many com¬
fornia at the time of the confer¬
ulation in inventories."
He said work and pay," he said, "although
panies to maintain year round
ence; Dr. Jacoby is now a mem¬
that individual firms might be the task is a difficult one since
employment by leveling the peaks
ber
of
President
Eisenhower's
able to go somewhat farther and it is affected by a wide varietv of and
valleys in sales and produc¬
Council of Economic Advisers.
even induce contracyclical specu¬
factors
both
within
individual tion.
Have large firms acted in the lation in inventories
by convinc¬ companies and outside of them.
"The benefits which flow from

ysis

a

a

corporations,
at
least
depression, usually have

in

of the Vick Chemical Co. said that

to

loans,

rate

resources

mates.

is

months, but in terms of

the cash balances and other finan¬

of his
study of the investment
planning of a 48-firm sample, he

there

De

regular

management
must
not merely in

years."

past as

De Chazeau

said.

that

markets

in

the conference issued by
the National Bureau of Economic

a

conferees

this

inuity of the product and service
standards they have come to ex¬

"Regularization
Large
of Business
Investment," the re¬ early in
port

cycle,

using

are

versity discussed investment reg¬

recently realized
to have had dent of the
Such National As¬
cause
of its need to maintain an upon investment decisions.
sociation of
effective
working
organization; procedures should also reveal the
Manufactur¬
specialized know-how in research, inappropriateness of the rule of
engineering, or management; tech¬ thumb many firms follow in treat¬ ers, labelled
the guaran¬
nological
leadership;
consumer ing the internal funds available as
a
'ceiling' on capital outlays." teed annual
acceptance and the goodwill of
which
distributors; options on raw mate¬ Even large firms, these research¬ wage,
has been adrial or locational sites, etc. "Cus¬ ers find, seldom have long-range
vanced
by
tomers must be assured of cont¬ investment plans.

pect.

Specific ways in which individ¬
ual firms

reminded

make

the

outlays are especially
important for the large firm be¬

But*,

others

the

to

have

investment

Re¬

search.

resources

Chazeau

Bu-

Eco-

nomic

:

firms

capital budgeting" by firms. This Forum of the Mid-Hudson Indus¬
would
"lengthen planning hori¬ trial Association in Poughkeepsie,
Y., on April 7, Kenneth R.
zons, reduce revisions in invest¬ N.
ment plans, and de-emphasize the Miller, Senior ,*« •

financial

Commit¬
for

in

various

traction

often

dominant role in

a

shifts

spend.

Summarizing
the
conference
discussion, Donald B. Woodward

meth¬

on

dures of investment planning and

also

Consumer

Again, an increase in
the propensity to spend
money on
consumer durables
played a large

the

reported

and Weston

and

.

is, consumption
investment character-*

wartime

to

the

Commerce

of

States

of

vestment in times of business con¬

Universities-

tee

spe¬

.

attention to shifts in the consump*
tion function."

Schmidt

position, stand to
gain the most from initiating in¬

the

National

Firms Stand to Gain Most

cial competitive

re¬

a

confer¬

ence

Large

Big firms, because of their

said

"yes" at

changes

clearly needed

high activity."

econ-

omists
cent

Some

business

Federal

than

;

moderate business booms and de¬

pressions?

the

basis

as

-

are

regular flow of investment

a

thorities

Summarizing discussion, Donald Woodward -de¬
clares fundamental problem is how to stimulate speculative
business investment in a slump.

Can individual firms effectively
their
investments
to
help

contracyclical

surance

investment.-

time

collat¬

eralized loans.

and Weston said.

boomtime outlays and uncertain prospects of depression-timed

«

eco¬

that

istics—played
the

/

P.

ods

by term and

bank managements have firm as¬

on

—

items with

promote steadier output and sales.
Yale Brozen of Northwestern Uni¬

credit

over

while others feel long-term advantages of investment

sions;

regularization

:

in

' against
a
credit ing Co.; railroads by K. T. Healy
They also point to rela¬ of Yale University; the electric
part in the post-Korean boom.
tively new lending devices like utility industry by. Edward W. Economists
have not paid enoughthe purchase and lease-back ar¬ Morehouse of the General
Public

for

leading economists maintain individual firms

durables

safeguards

credit standards

time their investments to help moderate booms and depres¬

the past 15 years.

over

squeeze.

bank

j

force

.

the

tendency to bulwark commercial

some

motivating

instability

petroleum industry by Richard J.

contraction

Time Its Investments?

other conferees

the

centage changes in investment.
The consumption function
has
shown
considerable

Gonzalez of Humble Oil & Refin¬

1930's provide

Co.;

of

much greater quantity than in¬
vestment,
small
percentage
changes in consumption are as
important as relatively large per¬

ley, Jr. of the Armstrong Cork
Co.; the industrial machinery and
equipment industry by Everett M.
Norton

he

a

reviewed by Walter E. Hoad-

the

in

While

fluctuations, Dean also re¬
minded that "since consumption is

~

of

most

the

as

in-planning for
'pay-out' pe¬ a more even flow of investment
riod—aggravates investment fluc¬ in specific industries. Experience
in the building materials
tuations."
industry
was

outlays

contraction.

nomic

The conference report also
pro¬
a
wealth
of
information
about experience
vides

investment

of

generally followed John Maynard
Keynes' emphasis on investment

Specific Industry Investment
Problems Are Discussed

by life insur¬
companies as a way of mak¬
ing investment easier in times of

At conference of National Bureau of Economic Research

and

fixed assets—a short

rangement offered

Effectively

times,

investment<

ance

Can Business

making

:

like to repeat his

I should

words.

Bible

fears which

based

day.

attic

man

for*

erence

Jacoby and Weston said, probably: in some specified
time,, period."
And so he gave to the Galatians moderates investment during the Abramovitz
cohceided that iri J in¬
a
bit
of
sound
advice
which, boom. But the "propensity to use dustries with many small
produc¬
strange as it may seem, needs to equity financing and the aversion ers assurance about the
future
be repeated and emphasized to¬ to debt clearly operate to desta¬ course of
prices would be difficult.

time

who

in freedom.

more

saw

time

merchant by trade.
same

no

promise of greater

another

of

man

on

time might come when men could
walk

27

the

firms

are

about

fluctuations

of

as

violent

all

manu¬

facturing investment."

Management's widespread pref¬

booms,

ing customers that prices are low
fall

and that they are unlikely to
much

in the

future.

The

guaranteed

annual

wage,

the NAM official explained, would

"If

impose so large a fixed cost on
possible, firms should cut prices business as to make jobs less,
severely when business falls off, rather than more, secure.
but they should also avoid a pol¬
"The employer committed to a
icy of continuous price reductions. wage guarantee," he said, "would
If possible, prices should be set be hesitant about taking the risks
to apply to all sales for a stated which
are
essential
to
business
number of months.
And custom¬ growth.
Paying employees when
ers would
be encouraged to take not working would decrease total
advantage of such bargains if the volume of production and increase
more

selling
them

near

f'rm
offered to nrotect unit cost of production. Compa¬
against the possibility of nies could be forced out of busi¬

stabilized

production are impres¬

sive," he said. "Steady operation
brings
production
economies,
making
chases

possible savings in pur¬
in plant investment.

and

Profits are!' not consumed by over¬
head expense on
ment
among

and

labor

idle plant, ermipcosts.

Turnover

emninvees is markedly re¬

duced, and the feeling of security
employees enjov prompts
them
to
coonerate with, rather
than to resist .new methods for

which

increasing productivity."

28

The Commercial and Financial Chronicle

(1688)

...

Thursday, April 15, 1954

gam

President White's review of his first full year shows revenue increase three times
the average

for nation's railroads...

many new

earnings

from $3.83 to $5.27

share... dividends doubled.

up

BRIEFS FROM HEW YORK CENTRAL

per

operating economies...

1953 REPORT TO STOCKHOLDERS

.

['

!
,V

/.

,




1. Management
strengthened
ization

.

.

Streamlining

Saves

$600,000.

We

have

management set-up by streamlining the organ¬
Some levels of supervision have been entirely

our

.

eliminated, making for

flexible, better integrated team.
Among other benefits is better staff work
A much closer
a more

...

cooperation between transportation and maintenance officers is
another

advantage

.

.

.

The organizational changes alone

bringing us a saving of nearly $600,000

a year

are

2.

Better Service Builds Traffic. Better on-time

of both freight and passenger trains,

efficient maintenance
are strengthening our
com¬
petitive position. Operating revenues, at $825,348,776, were the
highest in Central's history. They topped 1952's by $18,000,000

more

♦..

.

This

was

.

.

nearly three times the percentage increase registered

by the railroad industry

as a

whole.

in executive payroll.

m

i

5;3.

m- j

M

'

More Track Work for $3.7 Million Less. Further
step-up
in the riding quality of our track is a
priority objective in our
over-all program of improvement. Increased mechanization of

services totaling more than 2,740,000 train miles

track work and

for increased traffic

enabling

us

a

high degree of management coordination

accomplished considerably

of track

are

to attain that goal efficiently and economically.

While reducing maintenance of way
expenses by $3,700,000
we

were

more

track work

...

surfaced with mechanical tampers

pared with 905 miles in 1952.

performance

smoother-riding track and

...

1,906 miles

in 1953,

com¬

4. Many-Sided Attack
pruned off

our

profit...We

on

operations
on

Passenger

...

We

are

Deficit.

Unprofitable
a year were

also aggressively bidding

those passenger trains which operate at a

promoting "travel packages"...family fares...
bargain fares for group travel..
round-trip coach travel on
selected routes offering 33 \i% savings
the Manhattan
Trip Ticket... to determine whether reduction of coach fares
are

.

.

...

will increase... net income.

Volume 179

Number 5316

...

The Commercial and Financial Chronicle

(1689)

6.

With costs

Best Net Since 1944 Doubles Dividends.

controlled and

revenues

increased, net income improved substan¬

tially. At $34,002,039 it

was

37.6% above 1952's... and the

This permitted dividends totaling . . .
twice the amount paid in 1952 ... To protect and enhance the
investment of our shareowners (demands continued energetic
highest since 1944

5*

Better Use of Equipment Helps Cut Capital

average gross

nearly 14%
Our capital outlay for improvements in 1953 totaled ap¬

1951, while
.

.

.

Outlay. Our

tons per freight train in 1953 were 7.5% above

gross

ton-miles

per

train-hour

were up

work of

a

.

management that- knows

railroading

sound basis for

an

optimistic view.

proximately $83,000,000. This,was a sharp reduction from 1952's
figure'of $140,000,000. This year ... we are trying to hold
capital expenditures tp not more than $40,000,000
sum

for

a

...

a

modest

railroad the size of New York Central.

New York Central



.

.

.

Given that

type of direction by the present new management,

there is

29

The Commercial and Financial Chronicle

.

.

Thursday, April 15, 1954

.

<1690)

30

only exploded fissionable power can only be obtained by technology thereby acquired,
but as of last August building a full scald reactor.- But would be to encourage the con¬
also tested fusion weapons. Thus the choice of type of this first one struction of what he called small
we
are
forced finally to discard must necessarily be determined by "power package"
reactors.
He
the too common public belief that estimates of cost per kwh- as wellc estimates the cost of such small
the U. S. S.fR. is in this field as by the amount of known tech¬ units at the inordinately high fig¬
technically inferior to us, and that nology associated with each type. ure of $500 per kw capacity. How¬
has not

No Revolution in Electrical

weapons

Power From Atomic Fuels
By DONALD II.

I

LOUGHBRIDGE*

I

j

is still

only

not

on power

of economic life,

as

always

I fear

trary.

Year's

New

Jast

United

Commission took
tion

with

remaining workers

to

on

the

since

business,

allow de¬
of these various
industrial groups at the various
developmental laboratories owned
and supported by the Commission.

after

of

means

would

their reputation.
cal

No

to

blacken

more

and

was

with

has

of revulsion mixed

one

certain

upon

belief

mistaken
the

won

studies

that

These

war.

it

there

the

clear

full

for

wheels

of

energy

commerce

and

to the
indus¬

assist in

growing problem of pro¬
satisfactorily the world's

viding

high,

for

Hope

power.

was

were

essentially solved

"to

It

here

trace

this

which

desired

their

to

coexistence.

is

not

sion.
a

peaceful

the

all

result

was

that

the

Atomic

was

ing this problem, with the help of

interested
negative."

competent
ists,

de¬

power

fundamental

rived after several years of prob¬

-design and production to the al¬
complete exclusion of work
nuclear

a

by law, enter
aggressively into the full-scale
power
reactor construction and
testing stage. The answer we de¬

most

civilian

answer

if permitted to do so

forced by
-events beyond its control to con¬
centrate
essentially upon bomb

on

power plant,
(and I quote)
making this decision

question—would private industry,

loving nations, experienced
in the next few years. The over¬
peace

Energy Commission

build

to

says

before

had to

we

other

and

Commission

Murray

"But

difficulties

the

of

prototype nuclear

Mr.

necessary

country,

support of one

Program here
in Chicago last October.
In con¬
nection with discussing the deci¬

and all civilized nations could re¬
turn

construction of a nu¬
power
plant without gov¬

Public Information

great war,

problems

the

undertake

concerns

or

concern

Commissioner Thomas E. Murray
before
the
Electric
Companies

it seems to be after each
that now the world's

as

of

any

or another.
Hence we can
conclude, I believe, that a«t the
present time, or in the near fu¬
ture, industry will not be in a
position to carry the ball alone.
In support of this view, let me
quote from an address given by

ever

^demand
**

of

would

type

emphasis to be

thus materially

try and
the

form

the

changes in the law to
private ownership of re¬

clear

the difficult engineering
problems of harnessing this new
vast

with

even

ernment financial

on

and

which

report

no

design and

Commis¬

sion, David E. Lilienthal, initially,
that the way would now
be

"that

group

hoped
?jut

been

actors

You will all remember how the

of

that

concluded

Equally significantly

has

allow

by
the McMahon
undertook its mission.

Chairman

case

necessary

created

first

no

commercial promise

no

concludes

were

of the inauspicious circum¬
stances under which the Commis¬

sion,

report

was

in

that

been

in the field.

some,

Act of 1946,

has

any

there

relief based

of

amount

a

.had

The significant result of such

ity.

was

Thus

velopment.

that

we see

as

industrial¬

It

is

our own

Canada

has

also

Thus

are

good

sources.

dependent upon con¬
shipment from foreign
Furthermore, our Point

we

ore

nations.

Fou^r program is based upon the
desirability

of

nations

nate

in

aiding less fortu¬
developing their

for

that a large number
calculations and designs

power

out,

under

reactors

were carried
relatively small AEC

financial support, by many indus¬
trial
contractors.
It
is
equally
true
-was

ful

that much useful

technology
developed which will be use¬

in future

jects,
naval

under
and

opments
surface

nuclear

nuclear power

the

sponsorship

aircraft

power

But

of

It

is

also

be

ago

the

true

approximately three years
the Commission, recognizing
resnonsibility placed upon it

•Aii address

by

Dean

Loughbridge at




we

so

that ih the

will undertake

United
aggres-

sive development of practical and
in this paper I
say

will have

more

about the definition of

Petitive nuclear

power.

*>'which I refer

nouncement

is

that the/ U.

S.

to

in

us

First

reactors.

Na¬

can,

consider pres¬

pressurized

light

heavy water,
sodium-potassium

pressurized

water,

liquid sodium,
alloy, pressurized circulating fuel
(homogeneous reactors). Thirdly,
we

must choose

as

graphite,

water,
the

moderator such

a

light

field

of

after

their

ing nuclear power plant instead of
the successful explosion of a hy¬

the

us

drogen bomb, and had at the same
time offered the underlying tech¬

to foreign nations in ex¬
for uranium ore.
This

nology

It is to

have

they

where

the

of

in

use

Prototype

A

plant

first

the

was

Chicago,

50

that

informed

when!

I

power.
years

ago

turbine

steam

designed and built near
it was also known a

priori that it would not be com¬
petitive with the older forms of
generation.
Such is practically
always the case with new devel¬

This past tendency to
approving the con¬
of a first power plant

opments.

in

hesitate
struction

studies could show a
good expectation of obtaining
competitive power price has long
irked many capable engineers in¬
volved in making such studies for
until

paper

government.
The chemical
and
oil
industries, working in
fields of technologies much better
the

understood than that of the atom,
have

hedged their paper
pilot plants or

always

calculations

by

It does not need to be
emphasized that the auto industry
in their relatively simple technol¬

larger.

builds

always

ogy

many

proto¬

types of new cars and runs them
to death to remove the bugs which

present in new
This also applies to

always

are

vices.

de¬
new

airplane design.
So

firm
in

that

arrived at
the

development

this

to

boiled

promising
actors

next

of

have pretty

down

choices for
the

into

most

our

re¬

power

following list:

a

step

nuclear

will be for the government
build a large power-only light

partially enriched

fuel.

uranium

(4) Pressurized helium cooled
grapnite moderated with natural
or
slightly enriched uranium.
(5 Pressurized circulating fuel
in

solution with enriched

aaueous

uranium.

(Homogeneous type.)
(6) Plutonium meiect-liqum so¬
the

of

above

had

types

originally suggested as socalled dual-purpose reactors. And
matter of fact the first study

a

which

contracts

industrial

costs

being

which

in

high

grade

on

the

subsidies
by sell¬
made

the

to

gov¬

past

three

years

have been
made in approaching the goal of
military requirements for this ma¬
advances

great

terial

that

economic

consideration

trick

of

this

of

meeting

remain

constant

or

to

distribute

the

costs

properly to the products and thus
arrive

at

an

This

reaan-

S.- R.

seems

to make

intelligent basis for

cost.

such

military devices does not al¬
low one to expect them to come
close to being satisfactory for cen¬
tral station power.
From a mili¬

Small
Dr.

What Type of Reactor?
o

But

now

one

first

built.

faces the problem

of reactor should be
As discussed previ¬

is
certain that real
knowledge1 of costs of nuclear
ously,

it

pos¬

sibly to encourage some large in¬
dustry in experimenting with the
development.
More
promising,
The

Services

Armed

in

of their far-flung global in¬

stallations

are
now
operating
plants where the cost (ac¬

diesel

cording to the ArmyjCorps of En¬
gineers) may run as high as 6
cents per kwh.
Furthermore, the
freedom
from
the
necessity of
continually shipping fuel supplies
to these remote localities gives
the nuclear power package idea a
advantage

great
units.

the

over

diesel

For these reasons,

the U. S.
Army is greatly interested in such
small unit development.
Further¬
there

more,

are

foreign lo¬
could be

many

where

cations

power

used at high cost if available in
relatively small units.
These are
localities far removed from coal,

oil

hydroelectric

such
West Africa,
Lybia,
Algeria,
Central
Brazil,
Northern Chile, and Western Aus¬
tralia.
In most of these localities,
or

resources,

the Sudan, French

the

cost

diesel

of

oil

is

greater

than 25 cents per gallon, and nu¬
clear

be

packaged

appears

power

competitive. Of

situation would

to

the world

course

have, to

be

more

stabilized for this country to agree
to allow export

but

of fissionable ma¬
should be remem¬

it

bered that

some

their

thorium.

It

power'

uranium

of

could

reactors
in
the

.

or

that

conceivable

is

manufactured

having

nations

sources

own

small

of these localities

by

governed

be

United

and the fissionable ma¬
supplied by the country
a plant was to be lo¬
This should be a challenge

States,

where such
cated.

to those
in this

manufacturing industries

country interested in

con¬

structing reactors, and the operat¬
ing experience would add to our
background knowledge needed to
approach the competitive power
commercial

for

cost

basic

Atomic

this

in

use

However,

country.

change

a

in

Energy Act

would be involved in such

a

pro¬

but it would certainly fall
within our Point IV objectives.
gram,

Nuclear Power

Probably
tailed

studies

costs for the

have

actors

Costs

of the most de¬

some

nuclear

of

power

various types of re¬
been

made

the

for

Commission

by the Atomic Power

Division

the

of

American

North

Aviation Co.

although it is true
that much useful technology has
developed from the great effort
expended in developing subma¬
rine
and
airplane reactors, the
small importance of economy in
Likewise,

ex¬

sense.

nuclear

a

is low enough

plant

power

in¬

plutonium and power af¬
fect a reactor design in such dif¬
ferent ways that it would be very

be all used in the tary standpoint, absolute reliabil¬
activity of the Com¬ ity, ruggedness and very rapid
mission, and the excess of cost control of power levels are essen¬
over
present commercial sources tial, but have little importance in
can be charged
to developmental an industrial power plant.
cellent

the overall cost of such

crease,

production

expense.

per kwh, and the
capacity of which would
run about
$160 per kw. There are
very
few, if any, sites in this
country which could support such
power costs, yet at the same time

the
com¬

petitive power costs has now been
generally
abandoned.
Further¬
more, even if the military market
should

This
similar

a

installed

terial
power

plutonium
back

of

for its weapon stockpile.

during the

such

for

estimated

based

reactors

ernment
But

of

be obtained

could

the

called

teams

consideration

ing

Commission

the

with the first four pairs

made

than

of

about

kwh.

per

higher

be

to

2 cents

around

are

been

as

The .cost

sized diesel plant which should be

terial,

dium cooled breeder.
Some

cents

is

probably
keep the

somewhere

to

estimated

4

to

figure

as

graphite

cooled

Sodium

moderated with

difficult

have

we

now

decision

the. Commission,

generally

(3)

prototype plant. It is not expected
that this first plant will produce
am

to

with natural uranium fuel.

Plant

competitive

numbers of industrial contractors

partialy enriched uranium fuel.
(2) Pressurized heavy water

sion to decide actually to build a

economic

Now

study which have
out
by the large

of

carried

nuclear

causing the Commis¬

reason

units.

electrical

or

years

(1) Pressurized light water with

opinion, is the

This then, in my

in

were

for peaceful purposes.

power

main

Soviets

claimed

always

interested

the

that

remembered

be

B.T.U.,

is

power

21/2

down

$2,500,000.

many

all their
living. Imagine what a strategi¬ possible permutations and com¬
cal defeat it would have been for, binations, must be added the de¬
us if the Russians
had been able termination of power output meas¬
to announce a successfully operat¬ ured in terms of either thermal

been

cost

around

market.

To these

production.

variations,

total

small size,
kw, would

5,000

in

not slowed down

are

their

or

solution,

reactors

fast

the neutrons

ever,
about

heavy however, is the potential military

water,

fuel

aqueous

which last choice puts

none,

technical

of what type

the

we

helium,

technologies so as to enable them
work toward our standards of

to

com-

The

available

power

coolants

to

competitive nuclear power. Later

son

j>f Technology.

more

even

reason

devised

States
.

that

an

demanding that
finally, at long last, some means

for driving submarines,
ships and airplanes with
energy.

is

there

pressing

devel¬

examine

us

protoype will

Competitive Nuclear Power

pro¬

Washington

slightly enriched,
fully enriched uranium, and plutonium are available.
Secondly,
surized

water moderated reactor to be lo¬
time, although there has been
cated possibly at one of the large
much
public
discussion to the
gaseous
diffusion sites now op¬
contrary, private industry is not
erating for the Commission, and
in a position to carry on nuclear
which make the AEC one of the
power development without sub¬
largest
consumers
of electrical
stantial
government
financial
energy in the country.
The high
suppport.
cost power generated by this first

true

the

and

uranium,

as

Belgium controls the
central African beds, and

tinual

tural

are

ent

Of paper

by

these

checked

have the choice of fuels.

we

the

power

of the pres¬

been

variants

and

types,

have

been

proponents

staff of the AEC. : Let

of

country.

who have

concerns

taken advantage of this opportun¬

property t h a n
before been available,

ever

and

field

accepted

the order of 50

so

destroying

had

the

to

chiefly by power
companies and other public utili¬
ties until at present there is of

to this

world

industrial

to

of

various

different

rechecked

ore

most

uranium

of

possibility still remains.

mainly restricted

were

newcomers

were

The psychologi¬

weapon,

invitations

Such

much
effective in killing humanity

military

Response As Yet

companies

destruc¬

the

of

reaction

new

a

mass
more

even

that

also

veins

change

public places, as the "Merchants of
Death," and probably felt that
new

properly
employees
of

briefings

they had been tagged
in the halls of Congress, and other

tion

for

technical

these companies and to
tailed

World War I

"this

the

make
classi¬

to

necessary

information

cleared

ganization, who had done such an
^^outstanding job in designing and
building the great Hanl'ord pro¬
duction plant, was anxious to get
of

agreed

available all the
fied

studies,

such

out

carry

Commission

the project,, had gone back to the
-organizations, both university and
industrial, from which they had
"been borrowed; the du Pont or¬

•out

commercial

the

of

industrial

so

suc¬

of atomic

remember

any

who

of

explosions of the various
bombs, we must

cessful
forms

possibilities. To enable those in¬
terested
companies intelligently

low; many of the better
scientists
and
engineers, who
was

through the war had worked

invite

to

evaluations

nt the various laboratories at that

time

connection

proofs

desired to
study the - possibilities in
the
power field and to report back to
the Commission their respective

Project from the Corps of Engi¬
neers
of the U. S.
Army.
The
■morale of the

in

Now

Russian

the

great

companies

the

estimates

evaluating the U. S. S. R. nuclear

technology.

of this new source of energy, de¬

cided

of

the

by

designing

Manhattan

over

wartime

the

of

estimates of cost have

made

the

Energy
the opera¬

Atomic

States

the

con¬

have not always

we

not within the borders

that

the

to

by the Atomic Energy Act of 1946
to
develop peaceful applications

Day

as

Such

been this wise in connection with

of industrial endeavor.

exactly seven " years ago

was

is

enemy

he is, unless there is

as

information

definite

richer

It

his

assumes

intelligent

generation but also on many other aspects
well as in medicine, food preservation and

unconceived lines

ahead in the nuclear
good military strategist

way

A

race.

that it is impossible to predict its full impact

new

so

are

we

Institute, Northwestern University
In discussing the economic aspects of various types of nuclear
reactors, Dean Loughbridge holds atomic plants for producing
electrical power probably will be useful in specialized applications, but will cause no revolution in the power industry for
the foreseeable future. However, he warns the atomic age
Dean, Technological

✓

I

"Power Package"

Reactors

Weinberg, Scientific Direc¬
Oak Ridge Laboratory,
one
of this
country's most

They have made es¬
timates of comparative costs for
many different types, and arrive
the

at

that

conclusion

for

a

power-only reactor, given present
known

into

technology,

account 3%

and

taking

for depreciation,

6% profit, and 4.5% for taxes and

insurance, a sodium-cooled, gra¬
phite moderated converter reactor
generating

200,000

kw

could

within

the

next

constructed

be
few

which would produce elec¬

years,

trical power at 7.9 mills per kwh.
This is admittedly high.
At the
same

time, other studies show the

pressurized light water reactor to
be very closely equally promising.
Some will place bach type ahead

tor of the

of

and

economic standpoint.

designers,
has
suggested that one way of
getting more power reactors ac¬
tually built, and the experienced
knowledgeable

reactor

as

the

you

other

in

promise from an
The fact is,

all probably know, that the

Commission
awarded

a

has

contract

to

just

lately

the West-

/
Number 5316

Volume 179

The Commercial and Financial Chronicle

.

inghouse Corporation for the
struction

of

pressurized

a

Economic Nationalism—

solely for power.
will be under the

project

general

direction

who has done such

Rickover,

an

sion, as well as the Navy, in di¬
recting
the' atomic
submarine

Cites ill effects of foreign restriction on our airlines
of our restrictions on imports through tariffs,
while aiming to increase our exports. Says high wages are
fundamental gospel of American business, and while we are
improving industrial techniques, trade restrictions are nullify¬
ing them. Concludes "restrictions on trade are not good for

saving of

prove possible,
than 5 to 10% in

more

production cost of large fuel and
power
users is highly unlikely.
The already cheap fuel in this
country for the past 50 years has
that

been such

the

of

no

manufacture

of

cost

total

than 3%

more

has been fuel and energy expense.
"Chemical

The

News"

that

recent

of

".

.

and

Engineering

Industries

.

has

date

stated

fuel

where

and purchased energy are

exceed¬

On

Tuesday

hower

tended

to

the

with

3

to

nuclear

power."

so

could

Randall

This

prodigious
of life that

alterations in

our

way

dangers of

a n'

to
and
Lee

Pierson

upon

they'

as

soundness

of

and

By the same token, who will now
toe so bold as to predict the ulti¬
mate effect of the atom not only

were

bear

power,
but
medicine, food
preservation, and yet unconceived
iines of industrial endeavor?
As
•on

domestic

our

the

security

of techno¬

the pages

studies

one

econ¬

of

our

logical history one is always struck
'toy the diverse outcroppings which
'inevitably appear as a result of
•such
basic
advances
in
man's

The splitting of the
most
magnificent

knowledge.

the

is

atom

triumph
and

series

culmination

scientific

of

tributed

imagination,

human

of

the

is

of

long

a

advances

con¬

all the civilized na¬
tions of the earth.
Let us strive
to

that

ensure

its

be used in
civilized manner.

potentiality will

«the future in

a

PITTSBURGH, Pa.—A. E. Mas&

ten

Bank
New

A.

Ross

their

members of the
Pittsburgh Stock

and

Exchanges,

joined

has

of

Manager

as

that

announced

has

Gustafson

firm

National

First

Company,
Building,

York

their

municipal department. Mr. Gus¬
tafson comes to Pittsburgh from
where he has lived all
his life, and where he had been
associated
with
The
Northern

•Chicago

Trust

ager

Company

as

Assistant Man¬

in the bond department.

H. A. Riecke Elects

the House

points

of Repre¬

of view

members of the Phila¬

«& Co., Inc.,

Baltimore Stock Ex¬
change, announced at the
15th
■annual employees' dinner held at
the Warwick Hotel, that directors
delphia

-

of the company were
the

annual

re-elected at
of
stock¬

meeting

report
mise

rectors
;as

organization meeting, di¬
re-elected H. A. Riecke

Chairman;

John E. Parker as

President and Darrah E. Ribble as

Vice-President.
re-elected

were

officers

Other

U.

Warren,

G.

Secretary and Richard J. Handly,
■Jr., Treasurer.

'

■




«

or

almost

The time has

come

de¬

to

re¬

this trend toward economic

gentlemen

therefore

might

as

step them
to

ices generated; and is much more
prosperous

today

fore. So

see

ish

Certainly

similar

a

effect.

regulation

some

of all
in the na¬

these may be necessary

such

interest

a

so

of

or

country.

any

are

in

seriously to hamper
foreign relations it

way as

trade

and

usually

is

selfish

we

done

private

to

satisfy some
interest, not to

the national interest.

was

be

a

compro¬

expected.

To

those of you who have not already
so I recommend the
majority

by

Pressure

to

Now

us

let

closer

to

can

their

lines.

and

Western

half

a

centuries

civilization

emerging

from

ago,

just

was

the

Middle Ages.

nations

discovered

was

darkness

of

The major Eu¬
know them

from

other.

But

low

was

colony

one

industrial

because

facturers

to

the
production

English

wanted

manu¬

sell

to

their

be

itive

and

prim¬
standards dis¬

living

were

the

enjoyed

from

country.

was

take

to

It

machines

to

forbidden

this
even

plans of machines out of

England!

foreign

with

But
tions

freedom

developed.

could

condi¬

new

The

colonists

trade with other

now

coun¬

profits

would

changed

The

is

stage

again

set

for

a

—for the

more

the Middle and Far East.

foreign economic policy and those

Turks

who

van

wish

to

retain

restrictions

trade.

or

on

even

ex¬

foreign

our

The argument will be most

intense

between

tariffs

of

proponents

and

those

who

say

that
"goods
touched
by cheap
foreign labor must not enter our

shores."

>

I have cast my
lot with the
former, and accordingly, I want to

make

a

few

remarks

in

favor

of

reducing trade restrictions. In this
connection, however, I want -to
emphasize that my comments are
directed
riers

at

and

all

not

commercial

only

bar¬

against

high

that

us

had

it

bus set forth

on

in

resulted

ancient

China

routes to

that

the voyage

our

which
together

being

if

sermon.

to

have

that

Chamber

any

if

nation

its

am

not

whether

many
are

come

essential

more

be¬

than

eyer

as

are

prosper¬

everyone

trade

agrees

is

just

domestic trade.

What

International Trade Does

International

trade

the living standards of
concerned
home

just

improves

as

improves

the nations
business at

domestic

living

*An address by Mr. Pierson before the
of
Commerce of the State of

im¬

another
overseas and

time

one

countries

or

some

The

everyday needs of modern

moment.

of

quency

gen¬

are

erally promoted by some local air¬

and

will be increased

conversely this industry calls

larger and larger markets to

materials

nor

the markets

can

be

within the arbi¬
trary political frontiers set up
by men. I realize these statements
entirely

truisms but it is well

are

sidering

in

con¬

subject to bear them

our

If

a

,

principality
decided

day

commercial

the

to

dealings

neighbors, the effects
of

world

in

shut off

with
on

were

Co¬

its

the rest

negligible.

Those immediately concerned
could usually switch their modest
trade
went
a

to
on

other

areas,

and

life

pretty much as usual. But

modern

nation decides to re¬

strict commerce, the repercussions
are

the

that

over-all

will

country

of

the

through

make
means

foreign travel and
cargo service, but the local air¬
line may persuade the aviation
authorities
tional

faced

to

overlook

the

na¬

interest.

bound

to

be

world-wide and

damaging to everyone.

this problem

in

one

of Eu¬

>

enviable

trade.

tional

position

in

privately owned na¬
airline, through the Min¬

brought severe
TWA to reduce its
services, and for almost two years
we were faced with possible can¬
cellation of our operating rights
unless we held frequencies down
istry of Aviation,

pressure

to

an

on

uneconomic level. However,

when the

ticed

problem reached a high¬
it was

level in the government

recognized

that

well-being

and

the
country's
prosperity was

we

must

two

last

about

buy if

me

week's

Street

it—

we

are"

issues of

Journal"

I

no¬

front-page items—right

next to each

other—which struck

incongruous.

as

first

cuts,

plea."

said

"Tariff

might be

to

sponse

Ike's

Boosts,
Congress' re¬

'freer

trade*

The second said "Overseas

outlets

are

Benson's big

hope for

paring U. S. farm surpluses."
Could anything point up the in~
consistencies more plainly?
A

Fundamental
American

Gospel

of

Business

During some recent travels I
found time to read the biography
of Henry Ford by Allan Nevins
I

has

just

recommend

it

been
to

published.

you

as

some

enjoyable and thought-pro¬
voking reading.

very

world

The

mistake

of

one

"Wall

which

rope's smaller countries which has
an

In
the

of

limitation

growing exports.

no

to sell!

the

interest

suffer

Several yearjs ago, my company

little

lumbus'

by reducing our

arrivals and departures. It is clear

mind.

in

if

line which believes that its traffic

active,

But

not

services

our

have

to

want

this

The

for
a
bewildering
variety of materials for industry;

call

society

a

net

favor the expansionist
the United States

—

I

course.

areas

The endeavors to limit the fre¬

Chamber

New York City, April I,il954.

at

faced with it in

at this

before.

er

New York,

restrictions

to

by the authorities of for¬
eign countries on the number of
our flights.
We have run into this

we

certain, how¬

so

international

desirable

of

threat¬

constantly

refer

in

must

people

pleasant and

a

life. I

ever,

as

that

commerce

enjoy

ous

State

York

Commerce

to

suppose I have
the members of the

persuade

New

I

airline

international

are

international

found

come

business

problem

livered

parishioners would not
they did not expect a

the

in

we

larger and society has become in¬
creasingly complex. Because of
these
developments freedom of

operate economically. Neither the

his

a

posed

A preacher has a great advan¬
tage in that his sermons are de¬

because

about it

give you an example of
type of regulation with which

During the succeeding centuries
nations have become larger and

has

do

"Sell Ameri¬

a

policy — but the two of
go hand in hand. I, for one
—after many years of thinking

Line

me

ened.

tariffs.

church,

Air

Restrictions
Let

today.

commerce

policy

course

the

Colum¬

American"

can"

strength has been laid.
International

cara¬

for

in

trial

and

much

Most of the people who favor
trouble to mention

indus¬

been

continued.

foundation' for

future

enjoying

letters did not suggest
export business be dis¬

"Buy

our

export;

revenues

have

tween States were ended. The real

History

because

was

the

cut

And with the adoption
Constitution, tariffs be¬

exotic products of

battle in Congress and in the press
between
advocates
of
a
liberal

tells

the

for

and that without this:

export market both

Country.

developed a craving—prob¬
ably stimulated by the Crusades

com¬

foreign de¬

manufacturers

low wages;

of

another

a

manufacturing

vantages

one

omitted

that these exports were very suc¬
cessful even in competition with

not

with

missing.

tion of its revenues

of

reading.

goods

com¬

wage

substantial por¬
were derived-

a

gration of skilled workers and the
exportation

The

and

lower

pany concerned had

this

ex¬

noted

foreign

mention of the fact that the

that

They

employ¬

Also

Only one thing was
Somehow,
each
letter

less.

e.

have

levels.

tries and could manufacture goods

in tone and objective.

plants.

the fact that the

was

without restraint from the Mother

trad

would

additional

and

in

Nevertheless, the people even
of that day understood the ad¬
of

American

holders

partment; that

dustry and agriculture

to

profits to the stock¬

Crown which prohibited the emi¬

were
divided
into
tiny feudal
principalities and dukedoms, con¬
stantly warring with one another.

bring

pointed out that

competitors

Ger¬

Italy,

to

meant greater

and all of Central Europe

exist.

the

cases

asked

sales lost by the
company to for¬

mally low.

minority reports as "must"
While the majority did
go
as
far as some people
might wish, their report is liberal

Both

did

not

both

confined

many,

we

Ameri¬

why American purchases

should

today

as

messages

Both letters set forth persuasive
reasons

and the

done

In

were

goods in this country. In this they
received strong support from the

ropean

last

the

seen

on Congress to
prevent
imports competitive with these
companies' products.

petitors

America

examples

pressure

moving

When

it

Imports

to

Within

have

stockholders

ment

perspective.

not

manufacturing companies,
outstandingly successful in

both

independence the colonies had set
up high tariffs to prevent goods

historical

I

producers.

struggled with

turn

stockholders from two

eign

Perhaps it will be helpful if we
put the problem in the proper

forefathers

is

restrictions

Restrict

home.

weeks

this conflict of private versus na¬
tional interest decades ago.
Before this country gained its

Our

the self¬

sometimes

the

be¬

ever

even

endeavors to place on trade.

serve

the United States.

than

that

interest

health

immigration require¬

chamber of

any

from
having
suffered,
has
shared in the increased patronage:
of air transport which our serv¬

to

have

by

far

few

and

attitude similar

up—an

that taken

regulations,
cumbersome
licensing and customs procedures,

ments—all

time, rather than
flights restricted, we-

in the United States.
The most interesting development
is that the local national
airline,

of which high tariffs
constitute only one. Quotas, cur¬

rency

matter

them.

commerce

in

stopped

even

maximum
no

being urged by the local au¬
thorities and business interests to

benefited
commerce can

the

are

many ways,

dalism to become nations. But in¬

these

back¬

holders.
At the

been

dif¬

of

and

Similarly, I do not
PHILADELPHIA, Pa.—John E.
"Parker, President of H. A. Riecke

has

substantially, and the final

fered

the

regulations

England, France, and Spain were
just emerging from similar feu¬

lower

A. E, Hasten & Go.

the

sentatives.

pand

Ross Gusiafson With

by

President;
Senators; and five were

were

members of

by

utmost

the

to

vast

including

Vice-Chairman,

ground

that

administered

the

selected

The

affect

far

the. four

upon

Seven of its members,
the Chairman and
five

the

interest

earlier,

impeded

which

air

our

from

of

t

international relationships of

the very
large
augmentation of the credit system
-caused by these same inventions.

trade

having

Balkanism, but if this is to hap¬
pen
the
leadership must come

citizens.

and

of

when

verse

airplane? Consider their
effect not only upon transporta¬
tion but also upon the steel, alum¬
industries,

apparent,

dis¬

carried

the United States in the economic

omy

details

be

leave the

we

principles and get into

However,

stroyed.

the

inum, rubber, petroleum, and glass

more

running multilateral
built up during the last

—

Warren

field

of

tional

century

would be created by the automo¬
bile and

nations

him!

system

to

examine

report

is when

As I said

ex¬

A good customer
is like Santa Claus—no one wants

as

—

a c

the

war.

never

trade.

smoothly

appointed

was

international

tionalistic trade barriers that the

.

know

you

It

cussion

very

between

con¬

objective tout
important than the
an

first half of this century has wit¬
nessed such an increase in na¬

Com¬

mission

etc.

It is paradoxical that while the
of international trade

Com¬

mission.

Congress

turn of this century the

trade

of

Of

two-way street; that we must
import in order to export, etc.,

reduces tension and eliminates the

were

the

—

pursuant

have predicted

istence

world.

a

benefits

^

called

-

little beside the point.
at the

to me, are a

Morever, the

to shoot

Foreign

Economic

of

enjoyed

are

the

things together

such

more

some
specific
fight begins.

standards.

r &

comparisons, it seems

But these

Who

mill

4

of the

some

rr

Commission

Policy

profit from cheap nuclear power
but here savings would be only
5 to 10% in total production costs

implement

of

cement,
19%;
16%; clay prod¬
ucts, 15%; wood pulp, 8%. The
first
two
industries might well
cost.;

to
the
Congress a
proposing legislation in¬

recommenda¬

tions

on

manufactured ice,

Eisen¬

sent

message

ingly high are: blast furnace prod¬
ucts where they are 26% of total

production

President

of

meeting is held without some
speaker assuring us that trade is

economy."

our

these

as

ness

and inconsistency

eventually

should

who operated
Since that

secu¬

Practically everyone agrees with
this conclusion; and hardly a busi¬

"Buy American"

program.

4 mill power

or

end of

an

have peace

to

is

fabric

regulations and impediments restricting

international trade and calls for

expect the mil-

Even if 3

lenium.

a

not

us

Pierson decries

services

course, many

none

tourism- and foreign
and that its people wobld
by

and

a

based, gn
trade;

amount of

rest

tribute

produced and put into operation
in the minimum possible time.
let

the

by

Chairman, Trans World Airlines

Mr.

PeacS

and

the last three decades

over

rity except

Chairman, U. S. Council, International Chamber of Commerce

We can bb well assured
now
that this country's first ci¬
vilian power-only reactor will be

Trade

be, benefited

cannot

we

By WARREN LEE PIERSON*

projects.

(i69ij

Security
In the light of my own
experi¬

A Woild Menace

outstanding job for the Commis¬

But

A

And

>

ences

Admiral

of

■■*

.,

International

con¬

water

reactor designed

The

i

.

The

book

recalled

the

con¬

troversy which surrounded Henry
Ford's

establishment of $5

as

the

minimum
and

—

wage for a day's work
his then-fantastic theory

that Ford workers should be abler
to

buy the automobiles produced
by his factory. Today this rates

as

fundamental gospel

can

business.

We

of Ameri¬

all

believe, I
think, that the secret of maintain¬

ing

our

high-geared
Continued

economy
on

page

is

32

32

The Commercial and Financial Chronicle

(1692)

is also

Economic Nationalism—
A Woild Menace
markets, which require mass

inass

purchasing power and leisure to
enjoy the products of industry.
in-

I have often heard American
their
ineir

criticize
criticize

riii<jtriali<;tc
dustnaiists

onop

P,0sl

they have not recognized
and
adopted this philosophy.
Many
European businessmen are still
wedded to the idea of restricted
hicfh

r^rnrinr-tinn

C wS
low
wages.
vouch

I
1

its

for

nrofits

unit

and

nersonahv
persona y

can't
can t

not

but

accuracy,

which
pointed out that the Renault fac4*'
long ago I read an article

*

"

t-vl

#

tory m France is capable ol producing three times as many automobiles as Renault can sell.

over

1953 entered duty-free; most of
these, of course, were raw materials which are not produced in

United States

good for other friendly na¬
By increasing our com¬
with them we bring eco¬

restrictions

trade.

on

indicated

President Eisenhower has urged
to

a

our

modest program

The

able to

other workers were

and

eralization

over

can

however,

no

advantage in send-

have to give foreign countries the

the

basic

the European

econ—

regard

they
in

as

But strangely enough some

omy.

with which to buy them.
Those are the
real
reasons
which have led us away from economic nationalism — and which

will lead us further in the future.

good
—to

"Inventing Regulations"

engineers and scientists
were perfecting the modern mar¬
vels of high speed transportation,
other men have been busy in gov¬
ernment offices all over the world

a

paraphrase

serves

expression—

an

support, I hope

you

will

The shipment of goods
which arrives in New York from

Bombay by air in two days will
be held in a customs
warehouse for weeks awaiting de¬
termination

for

valuation

its

of

tariff purposes.
The

present Administration in
Washington was elected to office
on
a
platform which included

promises

to

restrictions

government

remove

business. I

on

am sure

will be affected.
cal

official

will

The prudent lo-

forthwith

take

time by

the forelock, get his muhouse in order, and be
prepared to meet changes as they
nicipal

may
still
some

occur—if they do. A standpolicy could later produce
red-faced officials.

Those

with

investment

'

houses,

too, dealing in buying and marketing municipal obligations must

support of the Ameri-

people in this objective, and
that it is trying very hard to make
can

leaders

who

were

their protests

interference
most

vocal

most

in

against government

in

anxious

business

also

are

the

that

govern-

hand be laid
foreign trade,
I wonder if they realize the inconsistency of their position!
restraining

ment's
more

In

heavily

1953

on our

United

States

mifilarv nS

exnorts

^

^
Tinn

eral

regularity for the past

sev¬

The unbalance,

years.

over

the years, has had to be made up

with your tax dollars through forp;^
nr

rnnrlcptpd
be marketed rhirinf* thnsp periods?
during those nprinds?

is the
is tne

resources

must

billion
sum.
ence

eign
a

of

be

of

tnat

the

admitted

imports is

United

that

$11

tidy
It hardly justifies the infersometimes made by our forfriends that we have erected
a

very

Chinese wall around the United

States.

Actually, our tariffs have
steadily over the
past 20 years, and now-average
only about half of the 1934 level,
More than half of our imports in
been

,

_

„

Capital Improvement Programs of
Municipalities 1954-58

Recently, at the request of the

policies to conform to the ability
pf fhp
of the

ummrninonfQl
governmental

imit
unit

sorb in changing times.
sumine

that

a

lone

to

ab-

But, as-

ran*?P

canital

prS could

and would beinstituted, nevertheless it should be

facT that

lact

States.
it

»

five-year

President's Council of Economic flexible and be reviewed at least

exports have reduced the

excess

natural

,

a

period, which is somewhat in the
realm of the foreseeable future.
Of course they should expect
their successors to logically amend

hi Advisers> the Municipal Finance annually to discover if the project
tnese
these °fficer? Association in collabora- which today may have high level
tion with several other national

And

overlooked
ovenooKea

the interest necessary or may
hesitate to inaugurate a long
range capital improvement pro-

rvuiuo™

pppppt™

^rant^

reduced




and from other
It appears too that

growing number of municipali¬
adopt a full or partial

ties plan to

pay-as-you-go

of

policy in financing
public
improve¬

kind of programming and plan- ments.
ning that municipalities should be
In general it would appear that
doing to meet needs of the people
municipalities have sufficient bor¬
during the next 60 months,
rowing margin for their planned
The reason for this perhaps is
improvement prdgrams with, of
that members of governing bodies
course,
exceptions; existing
for
are holding office for terms that
some
individual
places. About
will expire in the next two or
80% of the/ reporting municipali¬
three years. Such officials being
ties indicated that some type of
in policy-making positions, may, change would be needed in State
understandably, be failing to take and local legislation if their pro¬

aPP™aching this problem, if it is ments during at least

~

nous

shared

the

need

economic

of

era

government has its role
financial problems,
the
Federal
Government

If local

with corollary
and

role, then those\engaged

stakes

a

in

field

the

in

of

also have

ing

affairs

the

The

ties.

investment^bank¬
an important role
of local communi¬

Im¬

Capital

five-year

provement Program Survey talked
about here was necessarily lim¬
It

ited.

emphasized, the
from a small

is

obtained

data
per¬

was

centage of the total existing governmetal units of all descriptions

115,000
in the
Consequently, the
of potential local

about

States.

volume

capital improvements in the nexti
five years can be expected to be
multiplied a number of times be¬
yond the $4.9 billion indicated by
the
survey.
State
and
county
governments,
and
jurisdictions
as authorities,
were not in¬
It then must be obvious

such

cluded.

that

tremendous dollar

a

volume

of

public debt obligations of mu¬
nicipalities, counties, States and

their other

the

into

jurisdictions will come

market

the

in

next

60

alone.

months
One

inquire where is the
coming from?

may

investment
If

money

assumed

be

could

it

the

for

sake of discussion that the monies

was

expanded

ated.

The

four

acceler¬
frequently
cited changes, in the order of fre¬
or

most

priority would not in a later year
organizations, composed of local take a lesser position of essential
public
officials,
undertook
a need.
survey and study of the capital
All projects should be carefully
improvement programs of munic- screened and priced to discover if
ipalities for the next five years, the cost is within the financial
This was through a comprehensive ability
of the municipality to
questionnaire sent to the nation's acquire and the subsequent abilitv
largest 106 cities, which included of
taxpayers to
maintain
and
all cities over 100,000 population, operate without becoming unduly
and a selected sample of 228 cities burdensome financially. It is genfrom 10,000 to 100,000 population, erally recognized that many facIt is evident that, regardless of tors, including political as well as
size, only a relatively few cities financial, enter into the establishamong the many are doing the ment of long range improvement

for

account

of

some

the

funds

potential new
issues. On the other hand, if the
annual volume of new municipal
absorb

to

needed

all

is greater
issues redeemed,
some new money would be needed
if State and local governmental
for

issues

than

purposes

municipal

units

to

are

the

acquire and finance

potential

ments

now

capital

improve¬

indicated.

it may not be
that it might be
project for some re¬

/Parenthetically
amiss to observe,
a

laudable

sponsible research organization or
nationally recognized institution
to undertake to discover the an¬
the

to

swer

gram

gram. Whatever the reason may quency
are:
(1)
increase
ad
be, and it is recognized that due valorem taxes; (2)" increase ex¬
the heavy volume of debt obliga- regard must be given to the un- isting debt
limits;; (3) authorize
tions that will be offered in what certainty of political and economic new revenue sources or adopt
is now being called an era of eco- fortunes, nonetheless all policy- sources now authorized but not
nomic change. Finding fresh making officials, elective or apused; (4) increase State aids and
money for investment may become pointive, would reach a greater State shared taxes.
a problem for underwriters
as stature if, now, they would enSixty-six
municipalities
re¬
well as public officials. Are mu- deavor to establish a policy and
ported to questions relating to tax
nicipal bond investment houses program for acquiring improve-

for them a Pr°blem, on a long
range basis —for example, 60, 72,
<m wf'
120 months—to preserve their future relation with the immense
«Stfirrl volume of municipal securities to

ports by nearly $5 billion, a Ilguie
which has repeated with monoto¬

7.84%.

acquisition

be thinking as to how best aid
local communities by financial
counsel, in addition to finding inheadway. Strangely enough, how- stitutional, private and other inever, some of the Congressional vestors willing and able to absorb

it has the

9.03%;

a

of success.

sometimes

and

grants

State

sources,

Problems in 1954

considerable measure

a

if

works

an

change.

total

They .plan to finance
their capital
improvements this
way: Taxes, 7.23%; special assess¬
ments,
5.8%;
Federal
grants,

bonds,

6

possible. And they have

as

achieved

page

Municipal Finance

regulations to ensure
that their usefulness would be as
inventing
limited

from

in

arises

derived from redemption of out¬
taxes, 6.61 %; loans from other
standing public would be rein¬
governmental jurisdictions, 0.42%;
vested in new municipal bonds
short-term
loans, 0.4%; general
reaching the market during the
obligation bonds,'56.13%; special
next 60 months, this then would
assessment bonds,' 3.4%; revenue

While

Continued

public

quire

1951-1953.

3.14%;

not keep silent.

to

local

United

concentra°e

Inai me iiesidents program de-

should relax some more.
happy circumstance that

we

It is

as

to

totalling

Survey

Disclosed

"ndustrv

?lmunity

unable to The plain facts are that the United
see the tremendous markets our
States has become the leading pro- j
own products could
command if ducing and trading nation, and reonly the foreigners, could earn strictions on trade are not good
the dollars to pay for them. For for
our economy.
Therefore
some reason what is accepted as
purely for our own economic good that our consum|rs sho°ld have
obvious at home becomes obscure
we have relaxed some or oui ready access to foreign goods; and
when we cross the foreign bound- restrictions; and for our continued
'
President's nrLram de

of these gentlemen are

ary!

of

In the five-year Capital Pro¬
weight, both with your neighbors gram Survey which was under¬
and with your representatives in
taken, 141 municipalities reported
Congress.
planned projects totalling nearly
j h
' th . . deciding vour $4.9 billion for the period 1954-58.
position on these imnortant ™at- Local governments
planned to ex¬
terg
will ignorg the seifjsb pend 24.1% in 1954, 19.8% in 1955,
special interests of anv mrtipular 17.2%
in
1956, 16.4% in 1957,
eomnanv
or
15.8% in 1958, with 6.7% assigned
and will
to no one year.
Based upon this
on tbe over-all benefit to all the sample it appears that local gov¬
people of our whole country If ernments plan t<rr continue im¬
this leadg you to belieye th/t'we provement programs, and at about
need a flourishing foreign trade; the same rate as in the years

money

what

acquisition

1954-58

What the

public life of New York.
What you have to say bears great

ing products abroad if we receive
nothing in exchange,, or if we

American
businessmen have commented on
weakness

of

timing

three

next

the

provide some financial
governments to ac¬

such
aids

.

buy them.
I have said that many

President's Eco¬

would be done.

public projects will probably de¬
pend in some degree on prices of
.
.
.
deDending on y0ur point of view years.
If there is any logic in materials and labor compared
—a
considerable distance since what I have just said, Congress with present prices. Some public
Messrs. Hawley and Smoot.
should adopt such a program. officials may think it well to wait
In large part, this has happenHowever, . . . representatives of for distress market prices of ma¬
ed through the logic of cireum- particular districts or groups with terials before starting public proj¬
special axes to grind sometimes
stances and through the growing exert influence far beyond their ects in communities, thereby ob¬
taining improvements at less than
understanding by the American economic importance.
i
international
affairs.
people
of international
affairs.
present day costs. Such view is
Public opinion throughout this
Whether we like it or not, the two
generally regarded as not good
World Wars and the collapse of country favors less restrictions. A for the
economy of the country
poll \J I. X *■ Jf last month, for
empires A.ACiV y given ,, us greater '■ Gallup • j>/vJ. JL only X Oli-J V. ■. .'<IAAVl* ',/I.Aj ■ ''JLv/X- at large or its many local geo¬
have
WO
■ XtrXA
•
X-*
* V»
responsij3ilities. Concurrently, our example, indicated that informed graphic areas. The timing of ac¬
enormous increases in productivvoters support lower tariffs by
quisition of improvements then is
ity bothi0n the farm and in the 2 to 1.
another problem.

the United
Sr^treated'
we have advanced—or retreated,

work oTbicvcllsTecaull fftory' phave given Jis? to
You gentlemen are leaders in
5winhvRenanlts pluses o£,?ome, Pr?duc's There the commerce, the industry, and
the
be sojd ordy abroad.

Imagine how the market for autos
in France would grow if these

the

in

nomic Report,

country
of trade lib¬

commit

Congress to

programs.

many

^meTo

they cannot afford to by Renaults.

Thursday, April 15, 1954

.

Administrations of a too high dependency upon prop¬
municipalities,
including erty taxes to some other type of
some
■
relatively small places, are revenue source.
tions.
merce
becoming more conscious of the
These factors give some indica¬
nomic and military interests into need for such programming now— tion of the reason for some of the
harmony, and cement the unity of and not wait until an extreme statements in the Jan. 28 Eco¬
the
Western
world.
As I said situation arrives, if it arrives, or nomic Report of the President,
the
Federal
Government and the assertion that the role of
earlier, most of the bickering be¬ until
tween countries has always arisen sponsors public works, as has been
the Federal Government will be
what is good for the

31

Continued from page

.

.

question about new

It would be desirable if
reasonably valid estimates were
available. This would be helpful
to national economic and finan¬
money.

cial

planning.

In

editorial appearing in the

an

Buyer," Feb. 27, 1954, re¬

"'Bond

marking about a comparison of
corporate and municipal financ¬
ing for 1953, this was said:
".

.

.

The

Securities

Ex¬

and

Commission has issued a
that these are not as much of a study showing that corporate flo¬
tations of debt and equity issues,
deterrent to planned construction
other than
those of investment
as some other factors such as: (1)
policy
considerations,
including companies, totalled about $8,900
the desire to protect the credit million, which was a decline of
standing of the municipality; (2) 7% from 1952. In contrast, the
and

It

limitations.

debt

appears

change

of

total

the desire to hold debt and taxes

"Bond

within present levels; (3) the de¬
sire
to utilize "a ^pay-as-you-go
basis as much as possible, at least

State and municipal borrowing on

to

the

extent

of jnaking

"down

payments" for scheduled projects;

(4)
political considerations, for
example, the difficulty of obtain¬
ing bond approvals at local referendums; (5) a reluctance to im¬
pose

new

taxes

in

the

face

(6) a questioning p£jthe local tax¬
payers' ability to support an ex-,
panded capital improvement pro¬
gram; (7) a feeling" that the com¬

ernment

of all "levels of gov¬

are

high;

(8)

a

feeling

shared by many of the reporting

municipalities

thaf:-«ome of

the

tax burden should be shifted from

final

long-term for the year comes to

million, up nearly 25%
previous
year.
The
thought arises inevitably, in the
light of such trends, that State and
local government issues may over¬

$5,557
from

the

take/ corporates before long.

.

j

Suppose the trend does continue

of upward.

burdensome Federal- income taxes;

bined taxes

Buyer's"

planning

In view of the present
for new improvements
local and State

and borrowing by

governmental units, it is not like¬
to turn downward, so a part
of the question about sources of
new money may be answered. Be¬

ly

cause

if it could be

believed

that

even

the change would
completely finan¬
depressive,
the
dollars

economic change
not be

cially

optimistically
in an era of

unduly

or

Volume 179

Number 5316

.

.

The Commercial and Financial Chronicle

(1693)
needed

to

absorb

future

heavier

j.

offeringspeyt» municipal i,m4\
State

issues

vided

through

might aptly

be pro¬
lack of volume of

ington.

$10,000 annually

investment

solve in

bankers

the interest of

America.

a

to

30

or

years

sales

It

heavy bearing
financial problems.
At
beginning of 1954 the nation
a

authorities

1960

the

tween

necessary

nized

estimate

population

170 and

that

will

be

income.

to

the

villages,

where

they

towns

live.

;

and

Beyond

ing

profession,

also

local communities

lic

as

their

serve

various pub¬

on

interested

affairs;

as

in

more

community

well thev

•communities
with

are

Proposals for a
private financing

beleaguered

growth,

it

re-

the

local

situation

70 months from

will

vestment

be

$2%

As observed

now.

advances

motor

vehicle

•alone,

requiring

highways,
/local

in

the

field

and

parking facilities, will

and

services.

probably

nicipal

cities in

a

or

areas

as

new

fringe

problems

of

relatively also the

small

•cities but in

a

The

area

fringe

any

Obtaining

problem

revenue

reasonably
a

cannot

mean

that

in all

probability be compelled to

enact

legislation

will

state

provide

legislatures
of

local
of

sources

will

type which

a

communities
not

revenue

now

provided nor traditionally used in
the several, geographical
areas.
on

the

one

hand such

The

mands

the

of

people

and

'The

is

fleet
the

aging

replacement

derly

and

matter

a

sources

the

for

more

ignored.

new

of

Clearing House of Chicago in its
that

45

of

laws

previous
bere:

than

in

any

other

Briefly mentioned
and
Washington
rewrote their income

year.

Oregon

completely
tax laws.

Delaware increased per¬

sonal income tax rates and Massa¬

chusetts extended
come

taxes

for

a

two

surtax
more

on

in¬

years.

Connecticut increased corporation
taxes for a two-year period; emer¬

gency1

income-* tax

-rates




or¬

it

established

an

is

national

financing obstacles to

provisions

provide

of

insurance

for

100%

the

new

government

mortgages

on

new

ships; reduce maximum allowable
interest rates
build

on

borrowed

money

ships; make
changes

number of

a

:

in

were

national

quires replacement
merchant

fleet,

existing

policy

of

mortgages

money markets
terest

rates

Mr. Hecht
"Under

in

The

v

that

will

be

has

a

laws,

possible

*

to

it

would

<.

It

has

be

been

burdensome

estimated

that

to

to

the mounting cost of ship
replacement the shipping industry
will
require
borrowed
capital
amounting to approximately $2
to $21/2 billion over the next 12
years.

'

:.

.

"The

passage of this bill will
be in the interest not only of the

Merchant

Marine,

but

the

tion," Mr. Hecht told the
"Government

na¬

Senate
will be

relieved of the necessity for doing
this

financing. The shipping com¬
panies will have an opportunity to
get the necessary funds in a com¬
petitive market and at a reason¬
able

rate.

Finally,

the interest of the

it

will

be

to

shipbuilding in¬

dustry since it will make it

pos¬

sible to replace our aging fleet in
an

orderly
years."

fashion

over

; the

future

ship

Joins Cruttenden Staff
(Special

to

The

Financial

has

become

with Cruttenden &

tional

Bank

formerly

associated

Co., First Na¬

Building.

connected

He

with

was

Harris,

-

there

very

little

7.04

0.87

National

Chemical

Bank----

Exchange—.—

First

0.96
0.84

1.04

-

Corn

National--.

0.98

-

1.45

*0.98

*1.37

*1.26

0.41

—

*5.40

*1.55

Bank—.

1.32

*5.69

Guaranty Trust

0.39

Trust

Manufacturers Trust

1.42

1.37

Morgan,

4.74

4.37

J. "P. & Co.

tNational
New

U.

City

1.12

S.

Trust—.

0.80

4.87

;

^Indicated earnings.
Farmers

2.14

0.84

National

1.03

2.23

;

.

York Trust—

Public

5.23

Harold

flncludes City Bank

Trust.

The

//■//•'/

M.

Keir

PITTSBURGH, Pa.—The Bond

.

favorable

For

example, deposits although

2% lower than at the end of 1953,
are close to 3J/&%
higher than at
the end

of March

addition

effect

last

banks

to

of

FIF

a

year

lower

which

In

ago.

reserve

re¬

period

of

1953.

Bache

<

first

Colo.

—

Donald ' D.
to

the staff

Management Corporation,

444 Sherman Street.

together with other available

sources

have been invested

curities,
ments.

primarily

U.

of

conduct

the*

seminars

on

Sharing

Plans" for at¬
torneys at the firm's office in the

in

Building

April

on

15,

re¬

se¬

For the group,

these

holdings of
securities, gained by more

than

12%

the

over

past

year.

Other security holdings gained by
a similar percentage
although to¬

tal

holdings

much

of

are,

course,

very

smaller./,
on

averaged

though there

(1)

Factors and.o b j e

which

was

an

softening in
quarter progressed.

loans and
higher' al¬

evidence of

rates

as

the

*

involved

are

in

c

t i

v e s

selecting

retirement plan of
another designed to
particular needs of a cor¬
poration;
incentive

an

one

fit

type

or

or

the

(2) Tax advantages to the

poration,

Tfie rate of return
investments

will speak on:

S. Govern¬

group,

as

cor¬

the officer - executive
well as to other emr-

ployes; and
(3)

Reasons

for

the

general

trend toward profit-sharing plans

by corporations, large and small.

COMPARISON

NATIONAL BANK
Bankers

to

the

Government

Kenya Colony and Uganda
Head

.

Office:

26,

11

in
»'«

*"

AND

17 N. Y.

of INDIA. LIMITED

ANALYSIS

City

Bank Stocks

.

i

First Quarter 1954

Bishopsgate,

London, E. C. 2

land

Reserve ^IPdnd-*

eWitfiicts

banking- and

Copy

.-£4,562,500
£2,281,250

.'

j!
.

Request

Members New

Stock

Exchange

American .Stock Exchange
BROADWAY, NEW YORK 5, N. Y.

(L.

A.

of1'

Telephone:

business.

Bell

Trusteeships and Executorships
,!

York

Members
120

£3,675,000

every description

exchange

on

Laird, Bissell & Meeds

Protectorate.

Authorised, .Capital.
Paid-up Capital---

also undertaken

'

will

series

a

average loan volume has {
1954 at 5:30 p. m.
been lower but otnly moderately
Allan Rogow of
so.
Most of the funds so released
Bache^ & Co.',
who will address the assemblage,
,

The Bank

added

Co.

&

of

"Profit

Chrysler

The

^

Seminar Series

Thus, the

volume of earning assets available
to the banks this year has been
close to 5%
larger than in the
same

Bacbe Co. lo Hold

put into
permitted
the
larger percent¬

a

of their total funds.

age

Secretary:
Ralph S. Richards;
Jr., Richards & Company.

were

July

invest

Inc.

in India,
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

(Special to The Financial Chronicle)

DENVER,

the

quirements

FIF Adds to Staff

finance

construction

is

*$0.64

8.01

—

Branches

Mr.

likelihood of the government ever

Elects New Officers

Chronicle)

DENVER, Colo.—Frank T. Mc-

without direct government mort-, Kent has been

gaging,, and

Pittsburgh Bond Club j

1953

*$0.65

York

some

•

most

New

with the

Upham & Co.
bill,"

new

of

1.18

claim

shipowners seeking to build ships.

Hecht told the Senate committee,
"it

less

industry;
Mr.
Hecht said, wants the interest rate
to be high 'enough to attract in¬
vestment capital, but not so high

Connell

present

year.

3 Mos. to March 31

Chase

ship's depreciated value.

shipping

secure

said.

this

25%

compares favorable

com¬

at reasonable in¬

under

least

period of last

Where

the

to

Bankers' Trust.

5% to 6% ceiling in existing laws,

re¬

private

Bank

possession of the
at

The government also

aging

our

shipping

panies have been unable to

20-year

cost

City

favorable

Club of Pittsburgh has elected the
operating results following new officers;
realized by the banks in the first
on
the entire net worth of the
President:
Harold Keir, Jenk%
quarter reflect a number of fac¬ Kirkland &
shipowner.
Grubbs.
Despite a decline in loans,
The bill establishes a ceiling on tors.
Vice-President:
Bruce McConinterest rates for ship mortgages deposits and assets over the past
three months comparisons with a nel, Singer, Deane & Scribner.
at 1% above the estimated yield
Treasurer:
Arthur
Humphrey,
from 20-year government bonds. year ago in many instances show
Hulme, Applegate & Humphrey,
gains.
This
than the

capital into shipbuilding.;

Although

take

a

committee.

pointed out by Mr. Hecht,

as

states

seeking to modernize, their tax
systems to provide more revenues
this year made more changes in
tax

in

of

laws to encourage entrance of pri¬

comparatively recent annual state
stated

and

vessel construction.

Major

vate

Revisions

It is reported that the Commerce

review

problem

progressive pattern

of

de¬

only the remaining

meet

merchant

our

policy," Mr. Hecht said in urging
removal

to

or

^■

considering

i

of

national

a

technical

lightly

is

chant Marine Act.

growth should not and cannot be

State Taxing

Commerce

y'-'r.-r

Committee

services in the nation's population
treated

Foreign

legis¬

ognition by state legislatures that
meet

Water

on

legislative amendments to the ship

bill,

to

shipping in hearings be¬

to

at

below.

a

present capitali¬
so that
comparisons are on
comparable basis.

Irving

able

shown

was

dividends, figures have been

Hanover

out.

75%

Bankers

The final result

gain in net operating earnings for
the first quarter over the initial

When necessary because of

con¬

vessel

Committee.

would

revenues

American

Subcommittee

terstate

•other hand it clearly means a rec¬

local

the

the

lation may be considered as addi¬
tional burdens of taxation, on the

the need for additional

reason¬

of the

to provide for this lia¬

necessary

available operating earnings are
presented, otherwise the indicated
profits per share have been calcu¬

pay¬

struction cost,

which

the corresponding period

are

ments of at least 25%

American

Transportation of the Senate In¬

.

While

of

of

representing other major seg¬

fore

municipal

dynamic growth will

suits for

protected, he pointed
Since shipowners make down

mortgage section of the 1936 Mer¬
to

sources

operate

Committee

ments of

medium

be disregarded,

means

services in

and

lesser dollar amount.

the government is

in¬

taxes

many
instances their gahi.
a
larger tax provision
although the expiration of the
excess,
profits tax made it un¬

reflects

1954;

ship¬

a

before

In

the first
quarter of 1954 together with re-

Bank of Manhattan

ably

S.

area

•developments grow. The financial
problems of the great urban cit:ies will become

U.

new

by

ex¬

most

—Earns. Per Shr.—

be

tute

with the growth
abutting unincor¬

sense,

adjacent

porated

in

American Merchant Marine Insti¬

becoming central

are

lenders

sippi Shipping Company of New
Orleans,
spoke
also
for
the

mu¬

Even small cit-

revenues.

by private and insti¬

Mr. Hecht, who is Chairman of
the Board of Directors of Missis¬

This, of course, will cost
the money will have

already

owner

default

in

required

figures for

'/'Vv.V f '

ident

more

to come from taxes and other

to

Association.

and

money

$2

of

case

gam,

portion of the

but

stances,
earnings
were higher.

profits.

a

Steamship Lines and former Pres¬

com¬

get

In

sizable

Increased

a

zation

to
perform
under
the
mortgage insurance provisions."

in¬

encourage

improvement

prevalent

share

adjusted

capital
:: \

"

a

absorbed

un¬

better

during the bility. A year ago several banks
although profits from se¬ accrued for a
possible E.P.T. im
curities have also helped to boost
the early months. .*• ;
/.-.
•/. ...
the total of net

stock

is covered by the provisions
lor 100%
government insurance.
On default the government would

the

better

pound present problems. The peo¬
ple in our local communities will
demand

7X

this

part

conditions

was

earnings.

gross

of

little

period

lated.

having

mort¬

estimated

an

billion

ship

ship construction were
given at Washington on April 8
by Rudolf S. Hecht, Chairman of

better

and

more

of

of

merchant

of

transportation

more

and

Financing Ship Mlgs.

shipbuilding.

system

new

would

of

tutional

previously, the proficient techno¬
logical

that

gages

•quires little imagination to think
what

been

of last year for 16 New York

should.

If local

ones.

now

population

into

:

In

operating

Per

bodies, thereby becoming

deeply

the
have

a

return, there

reported larger operating
Similarly, indicated earn¬

ing figures.

in

volume

and

penses

all

bors

and giving other encouragements to entrance of
private

prepare for ad¬

ditional and heavier

one

larger

a

assets

in

ings were higher for the banks
that do not report interim
operat¬

Rudolf S. Hecht, Chairman of the Committee of American
Steamship Lines, describes new measure before Congress which
would provide 100% government insurance for
mortgages
on new
ships, with reduced maximum allowable interest rates,

be¬

With

of 1953.

Among the New York banks
but

by

175 million.

be admonished

the

be

cities

serv¬

fancied

the corresponding period

problems because by so
doing they will be helping their
own fellow
taxpayers and neigh¬

on

Bank Stocks

vested

for the first quar¬

reports

financial

those recog¬

as

are

ter of the current
year practically
all show gains over the results of

Devises New System of

bankers think their financial
prob¬
lems are difficult now, let them

tax

well

as

who

expected, certainly want to
assist local public officials to solve

being essential.

as

Those

problems „this, many, engaged in the bank¬

financial

those

cities.

—

Earnings
statements
of
the
major
banks which have pub¬
;

banks

If officials of local governments
their financial advisors and

with

still

and

This Week

at¬

lished

to

legisla¬

standing

including

-and

•

state

and

a

tent

by

not

their

on

ices,

population of about 161.1
million, a gain of nearly 10 mil¬
lion since April 1, 1950.
Compe¬

of

that

people demand and get more

future

-ies

3%, while

including reveriue needs to cover
budgeted expenditures so long as

and local governments are
the doorstep of new problems.
The element of population growth

-had

to

the' financial

problems of their villages,

and particularly those
specializing in the marketing of
municipal debt issues, will, it is

financial problems. Nei¬

own

still

State

on

evident
are

their

on

the

2%

By H. E. JOHNSON

banking,

ther will the administrations of
local governments be able to stand

variety of elements, the prob¬
lem of financing such costs is not
likely
to lessen in the future.
a

have

is

tures

As costs of local and State
gov¬
ernments have increased because

will

from

solve

towns

North Dakota and Rhode Island
extended their
temporary rates of
2%.
:;-///

Other Financial Problems

alone

tax

bring?
administra--

trained in the field of investment

reduce corporate
Connecticut increased its

taxes.

Bank and Insurance Stocks

will

governing and
have, problems ahead
they will overcome

tendant

permanently

nation's population grows.

•of

and

salaries.

corporate tax
Idaho decided to

and

future

tive officials

extended

reductions

tne

as

and

the

but somehow

from

wages

what

Local

tax, but it does not affect

Colorado

growing

the
present
outstanding
(roughly) $33 billion of municipal
and State debt will grow
during
20

ture

liable

are

income

It is anyone's guess how

next

individuals

for the

high

the

municipal finance problems
early in 1954.' Who would conjec¬

upon

on

business operations in which
gain resulted. All firms, corpo¬

rations and

answer may
be, the prob¬
largely in the laps of the

ration's

over

all adjusted gross

any
a

the

lem is

new

a

on

.

ever

Michigan enacted

receipts

offerings of non-public is¬
sues.
Also, Federal Government
offerings might lessen if the na¬
tional budget is balanced. What¬

j

,ji

±*=

o>

These comments touch
generally

lour-mill tax

future

Conclusionv

..

.

3$

■;

,

BArclay 7-3500

Teletype—NY "1-1248-49

Gibbs.

Manager Trading

Dept.)

Specialists in Bank Stocks

Financial Chronicle

The Commercial and

Island Ltg.

Our

Pfd. Stock

shares of
Island Lighting Co. pre¬
stock, 4.35%, series E, at

Long
ferred

Blyth & Co., Inc., and

Thursday, April 15, 1954

The First

proceeds from the financ¬

the list

funds,

other

with

together

will be used by

reportedly

bonds

mercial banks and

subject to redemption, at the op¬
tion of the company, at prices

ment..

It is indicated that the longer

Only Scratching the Surface
But let

in reserve requirements of the
is still the main topic of conversation in the

Why there should be changes

$102 per
accrued

commercial banks

dividends.

Lighting Co. sup¬
and gas service in
Suffolk Counties and

a

plies electric
and

Nassau

the

sula in

City).
served
mated

Rockawav Penin¬
Queens County (New York
Population of the territory
by the company is esti¬
at more than 1,400,000.

is

There

to

come

Operating revenues of the com¬
for 1953 aggregated $66,507,and net income totaled $7,-

net

and

amounted
to
income was

an

much

who

214*
%/*
fered

agent,

dated

Federal
dated

$71,000,000
May 3,

mature

The most important

1954, and to
The bonds

May 1, 1959.
bear interest at 2%%

per

the

question

annum

agreement among money market specialists

with

proceeds from the sale are
used primarily to
repay
commercial bank borrowings and

before it will take
The

erations.

chartered banks

are

reasons

the

of

farmer-owned

Farm

-;"y

of

the
Credit

much time

believed

require¬

One

time

which is considered by some in

to

But the

This gives the money

we

andltends to keep quotations from going

STATE

too

and

levels that would not be considered

specialists that there will

be

a

sufficient supply

\

of other than

government obligations, especially revenue bonds, to keep any of
these securities from going to levels which would not be consid¬

MUNICIPAL

that must be financed, and by

funds

outstand¬

The economy as a

purchasing

power,

projects

which

would

that

Aubrey G. Lanbton

in

are

need

of

'

'I

.

'

make

employment

Commercial

it.

also be

banks

financing of

a

in

-

policy or program, and has often as¬

politicians

and the people that should anything

sured the

in the nature of a serious
a

which

8c Co.
INCORPORATED

15 BROAD

very

cut

ST., NEW YORK 5

WHitehall 3-1200 "
231 So. La Salle St.

CHICAGO

i

ST 2-9490




in

money

45 Milk St

are

in

much by

so

a

reserves

many

respects

savings banks,

could

against

available for

time

the

deposits.

purchase

i most of the talk centers around

of

This

would

mortgages.

make

Even

though

what should be done-about reserve

.

requirements, the
dicate

more

recent change in the rediscount rate

vigorous

open

market operations.

From

easy

credit conditions is still the main theme in the money

may

in¬

to easier

markets.

depression appear on the horizon

fledged New Deal program not unlike

dent Roosevelt would be put
»

-

"In

more

BOSTON 9

HA 6-6463

full

be helped-

decrease in reserve requirements, particularly a

us bear in mind, too,
repeatedly confirmed his belief in

much of this sotrt of

localities,

many

to proceed with large-scale New

Economic Conference. Let

that the President has

those

for

available

president

■

creation of bank deposits which

but there would

force, the

programs to bolster the .inflation which New.
Deal tactics ha Ye fostered in the years since that ill-fated

whole would be helped by such a procedure

because there would not only be a
are

say

London

Other Credit Ease Possibilities

New Dealish Programs

we;dismiss this whole subject as of interest

Deal-like

Non-bank investors could find an outlet

mortgages, corporates and not-taxable obligations.

in

should

chiefly to historians, let it be recalled that there is. now
on foot a strongly backed movement to persuade, not to

tailoring offerings to the needs of

the commercial banks there will be less pressure on the

ing Treasury securities.
for

Before

In addition the Treasury will have deficits

ered to be favorable.

SECURITIES

be

would

goods into our market were concerned.

However, it is believed by certain money market

desirable.

went, if undue consideration were to

something approaching "a closed economy" — at least
closed so far as any large increase in foreign shipments of

favorable influence upon prices of government securities

and this could take them up to

•

bluntly inflation) to ship goods into this land of
to displace American workers. In language some¬
more academic, the plans of the President required

what

cut in reserve requirements at this time would

?

say

ours

sure, a

of these, of course,

condition which seemed at that
be but little short of a "far-off divine event.'*
end desired could not be reached here at home^
a

given to our relations with other countries, which
doubtless take advantage of any improvement (or

to extremes in either direction.

a

control

this country in a way he /
to reach certain results domestically
highly desirable. Most urgent at the
to be the price level, but there' were

employment,

the argument

so

that there should be changes in re¬

as

To be

he found

full

was

tions

have

that memorable occasion said

also other matters of vital concern. One

requirements in both directions, in order to meet the condi¬

U. S. TREASURE

on

his Administration had set out to

necessary

moment

serve

markets the needed fillup

;;

degree few appear to realize.

a

he believed

which

be much more than just a passing fancy

they happen to be at the time.

J

.,,.and to manage the economy in

is the principal reason for

requirements should be made at this time.

in

effect that

in

In addition there are plenty of other

It is being pointed out

item.

on

President Roosevelt

(which is rather an

should be a reduction in reserve

these is the flexability factor

,

It is not particularly surprising, therefore,

(

consistent with the general economic philosophy
the New Deal espoused at that time and which

lingers

complete

to be almost

cited by money market specialists as to why a

also being

the financial district to

Administration.

which

.:

■

•

few among us now seem

so

quite

measures

opinions that there should be cuts in reserve

reduction in these

institutions and operate under

supervision

place.

ments of the deposit banks.

the secured joint

are

appears

of the business picture

state

the strong

being

and
several obligations of the 12 Fed¬
eral Land Banks. These Federally

offered

about monetary

do

requirements, and that it is merely a matter of not too

provide funds for lending op¬
bonds

there

Nevertheless,

them.

will

great liberalization of trade and
relationships. Man's memory is tradi-

any

gathering which he among others had fostered shocked
the world. History will doubtless set it down as one of
the real follies of the time. Yet if the truth be told, it was

surprise is usually such an important factor

unusual development) that there

be

consolidated

authorities

Federal

because the element of

Net

The

in

of

market is

reduction in the reserve

through a large selling group of
recognized dealers in securities.

way

the

what

(

America, which are basically 1.

to remember much about
publicized London Economic Conference
1933. The famous (or should we say infamous) cable
President Roosevelt which so successfully scuttled the

that

To be sure, there is no ac¬
in which predictions can be made about when and

curate

on

right

•_

that then much

requirements of commercial banks.

Nov. 1, 1954, and
thereafter semiannually, and are
being offered at 100% and ac¬
crued
interest.
They are being
distributed on a nation-wide basis
payable

putting

issues.

factor overhanging the money

to when there will be a

as

with

tionally short.

Requirements Near?

in Reserve

Cut

bonds

inconsistent

other international

On the

the sellers of the government bonds have been

counted

The fact is that there are other movements afoot

around, that is, there are those

levels.

demanded and apparently

now

here in the United States of

quotations of these securities is

upon

consoli¬

Loan

Farm

influence

an

proceeds mainly into corporate and revenue

the

publicly yesterday through
Macdonald
G.
Newcomb,
their

being put to work.
at this time had

willing to take some profits at current

are

other hand,

of¬
■

be

of

there have been sellers

because

is

strong as ever because there

as

the .scale

on

reaching and go much deeper than mere trade restrictions,
whether they take the form of tariff duties, import restrictions, exchange controls or any other.

longer term issues, along

the investment of this money has not

reason

too

Federal Farm Loan

fiscal

plateau. It appears,

ample supply of funds around which are

The

The 12 Federal Land Banks

still

with the intermediates, is

degree that would be required to replace aid
export markets for our prod¬

There are many who believe, and they have much
to support their position, that removal of all restrictions
on
imports into this country would have no such result.
The economic ills of the world today are much more far

quotations of Treasury obligations.

The demand for the higher coupon

that action of this sort would
problems now con¬

upon.

will not be of long duration
market should have a very fa¬

the money

because further ease in

vorable effect upon

In the previous year, op¬
revenues

ucts

have

however, as though this resting place

000

$58,516,000
$6,312,000.

market even though prices seem to

temporary standstill in a sort of a

a

suppose

with trade and still support

attitude of investors

in the

change

important

no

toward the government

pany

733,000.
erating

market to the

Strong Buying Continues

contiguous

one

fronting the world—if indeed it did that much. It would
be absurd to suppose that any tariff reductions likely to
be made would enable foreign producers to invade this

future.

lowering of these requirements in the near

no

than scratch the surface of the

more

that there will be

markets. The feeling is as strong as ever

money

Island

Long

any

big banks in the
term
most of their attention from the smaller com¬
pension funds both the private and public ones.

getting

are

elements which would do all that they could to block
concessions to foreign competitors are the ones now
feeling the greatest dissatisfaction with our liberality,
both tend to give strength to the "trade not aid" move¬
very

smaller out-of-town ones

the

with

banks

product of our labors gratis to foreign peoples in unheard
of amounts, and the further circumstance that many of the

getting competition from the

now

New York and Chicago areas.

preferred stock is

ranging from $104.25 to
share, in each case plus

commercial

the

into

preferred stock, and $10,000,000
par value of outstanding 5.25%,
series C preferred stock.

that

fact

bonds are still moving

term

intermediate

The

have not been idle in behalf of their claims. The
we have
of late years been pouring out the

economy,

been too aggressive in

obligations when buyers have not

securities.

these

A

The series E

get what he demands than otherwise would be the
Certainly those who believe in at least a lowering
of the tariff wall which has been erected around our
case.

periods of lapses in the near¬

though there have been

even

est term

the company for

$10,000,000 par
outstanding 5.25%, series

value of

As We See It

and it
probably would have continued that way were it not for a lower¬
ing of the rediscount rate. The cut was not unexpected, but
the timing of the announcement did contain an element of sur¬
prise.
There is a good demand around for nearly all issues in

the redemption of

to

.

to

in a consolidation area

government market was

The

Boston Corp.

ing,

Governments

on

CHIPPENDALE, JR.

By JOHN T.

$100 per share, was made
on
April 14 by a syndicate jointly
managed by W. C. Langley & Co.,

Net

Reporter

200,000

of

Offering

to

.

Continued from first page

Bankers Offer Long

to

.

(1694)

34

'

*

is

*

point of faict, what has already been

■connection differs
as

that of Presi¬

immediately into effect.

•"

done in this

only in degree from such a program

envisaged now and was regularly promoted

Nkw Deal and the Fair

by the

Deal. All thought of a balanced

budget in the foreseeable future has

been abandoned, and

,

Volume 179

Number 5316

.

.

The Commercial and Financial Chronicle

.

(1695)

relaxation

tax relief

granted in a form which the New Dealers al¬
have insisted is the way to prevent or to cure de¬

ways

It is futile to

pressions.

Administration

the

Continued

argue about the degree in which
the politicians are to be held re¬

or

of money rates ridiculously low, and to flood vir¬
tually all markets with funds artificially created by monetization of the national debt.

by "multilateralism" in international trade is

meant free movement of

goods throughout the world with¬
competitive exchange rate cutting and panicky move¬
ment of monstrous amounts of investment funds, then it
must be obvious this goal about which we hear so much
today is incompatible with such unilaterally managed

out

is rstill

as

essential to

as

In view of the

apparently regarded in Washington

and

Economist

Reierson, Vice-Pres-

ident and Economist of the BankTrust

Company, New York, in
study of the current supply and

a

demand

tors
to

Bankers

of

^u'es

e

fac¬

health breakdowns.

week-ends to avoid ill health

objective
of not contributing to an important rise of interest rates while
business activity remains lower.

that
e n

t

funds will de-

cline

this

while
of

year,

supply

such funds

cruing to

ac¬

in

Strongest

,

1953,

as

the result of

decline

a

Also, net borrowing
by the Federal Government is
likely to be somewhat lower, re¬
mortgages.

probably be
same

Government

creased

will

tions

Local

expected in housing starts and in¬
amortization of existing

non-

institu¬

bank

and

Among the major classes of bor¬
rowers, only state and local goverments are likely to have financing requirements as large as last
year, the estimates
show, .i Outstanding real estate mortgages are
expected to show another big increase, but a smaller growth than

demand for

the

general

Demands

comes

investm

the

Treasury's

R°y L. Reierson

gen-

bring about

required
reversal.

a

by Dr. Reierson is enFunds—Supply

and Demand" and consists of

clusions based

presenting
1948-19.53

and

tables

The

and

estate
and

on a

the

and

sources

the major groups of

investors.

Pressures

Mild

Reierson's

Dr.

appraisal of the
underlying trends does not indicate a continuation of the sharp
^

x

declines of recent months.
reflected

have

tions

not

market

Qn

other

the

hand,

new

29,

to

cover

Diant an(j eauioment will

lower, reflecting some liquidation
oTb^isinesrinventories Tn T95X in
...

in

accumulation

with

contrast

.

.

.

Curtis, VicePresident of

the

Supply of Investment Funds to Be

demand,

Maintained

Company
L0Uis

be

to

the

in

decline

the

Unless

trend of business activity.

employment

In

contrast

with

the

outlook

and

accruing to investing institutions
wjH probably be of the same gen-

executives "to
take

it

re8i

magnitude

insurance

suggest that downward pressures
upon interest rates may be mild
rather than potent.

as

The

1953.

in

loan

pi

easy"

in their work,
and
not be¬
come

a

ber

of

mem¬

the

"C oronary
C 1

b."

u

A

s

requirements
f

0 r

F» J* Curtis

ship

in

the

.i

,Pronounced .Upturn Unlikely
On the other hand, Dr. Reierson

<</1N

......

,,

he

Club"

ment

investment

is

aKKicgaic
aggregate

u

accounts

likely
iiKeiy

maintained in 1954.

in

the

ue
wen
be" well
As yet, there
iu
to

js

little

business activity apthe credit and debt

ah upturn in
pear,

both

ment and incomes would

probably

ticipated

ably design their policies so as not
to contribute to an important rise

than is now anthe balance of the

year.

New

nominated

Rogers,

been

CnrtbfJbd

Mr

In tackling the problem of

...

ex-

"(2) Go to the office evenings,
Saturdays, Sundays and holidays,

should

secondary,

"(3)
on

continued,

Take

the

briefcase

the
from

be

first
a

approach
psychological

rather than medical standpoint.

home

"I believe that

the evenings when you do not

more

than

men

worry

has killed

cancer,

though

§° to the office. This provides an cancer often gets the credit," he
opportunity to review completely observed,

Treasury Long-Terms Likely

OLEAN,

N.

Y.—George

D-.

B.

Vice-President,

As one way to reduce worry, he
the
appraisal
interview

timates of the supply and demand
fdctors

at

work.

Such

an




offer-

,

,

u /n\

*

or.

T+

h,,.],

cetera, ar

io

a wa

3™

delegate resnonsibil-

J, ff

f

carry tne^entire

TiVinx

fnr

nolle

) JrJ

"

■

11 JJV

,7°™, caJ®

.

traveling—work all day and drive
„n1

•

i

4.

"

world is «it can>t

lightning or
off the road,
but one only has to look in the
newspaper to see that these things
will

Tolson, Vose

Zalduondo

and

are

incumbent members of the pres¬
ent Board of Managers who were
renominated.

<

Nominated

for

Inspectors
of
Election for 1955 were: Edwir* F.
Beauchamp, James B. Irwin and
Sidney S. Shlenker.
The Exchange will hold its An¬
nual
Election on Monday, June
7, 1954.
i
*

^

•

JOIns

(Special

to

I

J" reiDieman

The

Financial

Chronicle)

NEW ORLEANS, La. —George
P.

become associated

Dorsey has

Richards

Company,
Building Arcade, mem-

^rS °f ^ NeJJ Orleans StOCk

pulsory vacations, enforced by top
authority, and a number of minor

Exchange. Mr. Dorsey was previously with Merrill Lynch, Pierce

One chemical

Fenner & Beane and

with

-'Time for these breaks

can

be

found> Mr. Curtis said, by increasin& personal-efficiency. The use of
an assistant by an executive can
the executive from excesfrmT1
sive detail, .he added. Planned activity programs for persons ap-

spare
snarp

Healy Now

-

With Webber-Simpson Co.
(Special to

Financial Chronicle)

The

—
William B.
Healy has become associated withWebber-Simpson & Co., 208 South
La Salle Street, members of 4heMidwest
StockExchange.
Mr.
Healy was formerly with David A.
Noyes & Co. in the trading de¬
partment.
i

CHICAGO,

taken as a unit

prior thereto

Kingsbury & Alvis.

William B.

com-

he reported, is trying out a
sabbatical leave of six weeks
every third-year which must be

111.

.

,

■*

^

^

by

go

years,

for they

expand

the

Clement

A.

"minister to

Inc., Liberty
duty Building.

which is reflected in the internal
conduct of the job." Civic, business and technibal
organizations
that are worth while must be

struck

Co.

Boedtker,
Conlin, Figgart, Fitzgerald, Knell,
Levy,
Miller,
Morison,
Paine,

Among other suggestions
of¬
by the speaker were w.u^
wClC com-

and

car

Orvis Brothers

of

Messrs. Wade, Rogers,

fered

ing

be

''■7>w

Company;

—

always feel that

we

Brothers

with T. J. Feibleman &

ties is desirable during the work-

adding:
somehow

of

proaching retirement age can reduce their worry over what is in
Clenlent Evans Adds
st0re for them, and thus make
(Special to The finanqial Chronicle)
their work more effective. Indeed,
SAVANNAH, Ga. — Samuel
Mr. Curtis pointed out, a reasonhappen here," he able proportion of outside activi- Sloan HI has- joined jthe staff of

sense

of

Evans

&

Company,

National

Bank

Joins Grimm Staff
(Special, to The Financial Chronicle)

111.—Ch a rJ.es M.

Thompson has joined the staff of
W. T. Grimm & Co., 231 South

'•

Stephen„T. Gilboy.

Co.,

Board

Alfred Boedtker

were:

Zalduondo

"

employee's situation.

"

^J

1

Pany,

^
fr* vacation time which s p o-

.

'

and 6nforced

o

,

,

'

wr,breaks during the year, such as
hinSdc popHo'long week ends or afternoons off
pool, billiards, card , for gQj^ to be taken on schedule

Jig,

the

&

,

ferencejor the meal hour,
Trichinahnntlnc
^ hunt g are
^ffte of time an,3 money — you

^

for

Volkart

he said is now being made

*

Bank Building undei'themBceljl^i^^^^ie^Company
of

J.

and

•••

Managers

part of many executive develop-

Accept all invitations to ment programs, and in which a
meetings, banquets, committees, man and° his superior meet at
et,^era'
regular intervals to discuss the

h*..,*

Nominated

CHICAGO,
is.assumed in the quantitative es-

Malcolm

were:

for

cited

"{4> Never sayNO to a request which

whose

Bonbright Branch

Presi¬

change, it was announced by Wil¬
J. Jung,
Chairman of the
Nominating Committee. Also

will

of interest rates."

nominated for

was

liam

it is the other fellow whose house

for

Co.

dent of the New York Cotton Ex¬

ecutiye conservation, the speaker

have to be larger

management authorities will prob-

Edward J. Wade of Wade Bros.
&

'P
Hr
comes first; personal considerations are

evidence that the recent

A

Exchange

-Slate of Officers

enough atten¬
to-keeping the

not

~CutiveSwhenthevhave

developed

as com-

morning.
,
finds that "economic forces are
sag in economic activity has imThls Phraseology is on; the
likely to operate against any im- portantly curtailed
the rate ■; of facetious side,
Mr. Curtis adportarit rise of interest rates in saving.
To make real inroads on fitted, but "that does not mean it
the period ahead."
Furthermore, fog aggregate volume of current should not be taken seriously."
"until fairly conclusive signs of
-savings, the decline in-employ- The most deceitful thought m the
'

the individual, more

upon

governed by the climate
in
which he works, and that climate
is set by the men at the top."

John M. Williams of Royce &
for Treasurer.

tion has been paid

"Coronary

listed the following rules,
piled by A. G. Kettunen:

companies, savings and

associations, pension trust
funds, and state and local govern-

become

is

problems.

development,

member-

incomesjs larger factors currently growth of assets of savings banks, v
than is at work
the

anticipated,

tt

St

ad'

Mo

vised chemical

+

and

.

likely

Monsanto

Chemical

(6) Do not eat a restful, relaxing meal—always plan a con-

1953

man

Co.; Alfred B. Emmert, Dan
River Mills, Inc.; Tinney C. Tigthe value of a man, Mr. Curtis gatt,
New
York;
Edmund
W. *
estimated that in the case of a Fitzgerald of
H. Hentz & Co.;
Jewell
E.
man aged 47 who started his busi¬
Floyd,
New
York;
Frank
J.
ness
career
at 22 with a $3,600
Knell,
New
York;
salary and had reached the second George A. Levy of Anderson,
echelon
from
topmost manage¬ Clayton & Fleming; John D. Mil¬
ment, the employee's value in ler, Jr., pf Robert Moore & Co.;
terms of salary (now $40,000) plus Nathanfel H. Morison, Jr., of N.
"value
added
by
manufacture" H. Morison; Hugh E. Paine of
would be at least $425,000.
Abbott, Proctor & Paine; Joseph
M. Sauer, New York; Gustave I.
Despite this great value, how¬
Tolson of Geo. H. McFadden &
ever, and despite the study given
in the past 15 years to the prin¬ Bro.; Alden H. Vose, Jr., of Kohlciples and practices of executive meyer & Co.; and J. Antonio

-j^ys say YES

refunding. for lower new money requireLooking
ahead, Dr. Reierson ments
from
these
four
major
reasons,
the determining factor gr0ups of borrowers," Dr. Reierunderlying the movement of in- son states, "the volume of funds
is

J.

a11 the troubles and worries of the
day

of temperate Treasury

rates

Francis

probably evidence only a moderrate decrease in comparison with

These

but of easy credit conditions

terest

depends

faces loss of all the training
experience the man has acquired. Although conceding that
there is no precise way to measure

cor-

expecta-

only of lower

of the

than the first? While much

worse

of

porate bond and stock financing is

ments

'

Downward

the last state

sub¬

Bernard J. Conlin of B. J. Conlin

a

1953, but working capital requireare expected to be sharply

funds of

of

uses

by putting the feet
thinking or by

and

pany

_

Corporate requirements for funds

real

desk

and

collections

which tax
based,

1954.

financing

the

neering of the American Chemical
Society at Kansas City on March

are

expected to drop sharply this year.

corporate,

government

upon

year

years

estimates for

cover

con-

series of tables

for

data

1953
this

provided

employee has a heart attack, Mr.
Curtis emphasized, for the com-

this calendar year, because of the
satisfactory corporate profits of
corporate P
saustaciory
„

The study

titled "Investment

be

talk before the Division of
Industrial
and
Chemical
Engi-

magnitude as in 1953.
fleeting a smaller cash deficit. Dr.
The underlying supply and de- Reierson points out that Federal
mand
factors, according to Dr. expenditures have been declining
Reierson, indicate that the trend for some time, while tax collecof interest rates is likely to con- tions, despite reduced rates and
tinue downward.
Definite signs lower business activity, will probof more than a casual upturn in ably show a smaller decline for
business will probably be

can

be

can

The tools

helping subordinates over their
hurdles, or will it be devoted to
grabbing additional duties, and

executives by taking their

minds off vexing immediate

i

in

eral

to

on

little

orders.

carpenter must want to
Will the time and energy

saved be spent

Advises compulsory vacations and long
among

divi¬

pay

the

build.

J.

the

State

con¬

clusion

but

Curtis, Vice-President of Monsanto Chemical
Company, tells members of the American Chemical Society
to "take it easy," and avoid over-work and ill health. Lists
cost to chemical producers from executives' and
employees'

relating

t h

to

in the

which

in

by direct

and the materials

Membership in "Coronary Club''

Francis

Trust

ing would not be inconsistent with

investment

funds,

interest evinced

keen

will

N Y Cotton

Company,
New York, foresees lower investment demand despite high
level of savings.

Dr. Roy E.

done

ject, The "Chronicle" would welcome receiving com¬
ments on the views expressed by Professor Wiegand
or
on
any related phases of the subject.
Letters
should
be
addressed to
Editor, Commercial and
Finanoial Chronicle, 25 Park PI., New York 7, N. Y.

Trend of Interest Rates Downward: Reierson

ers

the fields

program

welfare.

our

Vice-President

the

if

calls for spending
more than tax receipts make possible,
it is tanta¬
mount to saying that only through continuous infla¬
tion can economic prosperity be maintained.
And lastly, they aver that by acceptance of the
theory of governmental] y created purchasing power
to secure full employment^ we completely neglect
the basic factors which could insure a high level of
business activity and employment at no cost to the
government and taxpayers.

sorts

economies

that

that

dends," he observed, adding:
"I am afraid our main job is
one of preaching.
This is one of

page

WHAT DO YOU THINK?
point out

sponsible for Federal Reserve policy during the past year.
The fact is that great pains have been taken to make, all

Now if

from first

35

as well as the individual stands to lose much if the

"The taking of the mind off its La Salle Street. He was formerly
immediate problems is of itself a with Rodman & Linn.

36

The Commercial and Financial Chronicle

(1606)

in

of Commerce

News About Banks

1923, he was appointed to the
Examining Division of the Office
In

CONSOLIDATIONS
NEW

OFFICERS,

cf

BRANCHES

NEW

the

York.^

CAPITALIZATIONS

and

of the Cur¬
assigned to New

In

was

1933, he was sent to

Washington

assist

to

the

in

or¬

ganization of the Federal Deposit
Insurance Corporation.
At

the

meeting

regular

the

of

Board of Directors of The National

City

Bank

New

lield

of

Aoril

13, C. Boice
Nourse

Avenue

was

appointed

hibit,

-

Mr.

Nourse,

who

is

and

many

a

been
C.

Boice

of

tion

of

"The

the

to

have

who

exhibit

M.

Guaranty

£

Trust

Company

Vjjment of Thomas H. Jordan
'Assistant

He

has

Bond

been

since

bank

in

Treasurer

Government

of

the appoint-

announces

as ari

the

U.

S.

Department.

associated

with

the

1934.
if

rt'
if

if

chief executive officer of the bank

and Frank H.

Wimpenny

as

Assis¬

Secretaries at Manufacturers

tant

Trust

Company.

New

York,

announced

April 8.
Gartner joined

Mr.

„

turers

Trust

Manufac¬

Earl

to Manu¬
facturers Trust in February, 1937.
Mr. Wimpenny is assigned to the
bank's Queens Plaza office.
came

Manufacturers

Trust

Company

has put into effect its new Retire¬
ment
Program for officers and
employees of its 1 correspondent

banks, Horace C. Flanigan, Presi¬
dent,
In

letter

a

than

more

the

to

Company's
corre¬

spondent banks, located in every
State of the Union, Mr. Flanigan
sent

51-page booklet containing
information designed to

a

technical

assist

the

individual

bank

in

formulating its own pension plan,
including a suggested "model
plan"

and

ments to

_

< ;

"For

of

drafts

trust

agree¬

ficers have been

working with

a

group of actuaries, lawyers and
pension specialists," Mr. Flanigan
said, "to develop a plan that
would

suitable for all

be

partici¬
regardless of size.
The result is a group pension ar¬
rangement which does not incur
pating

banks,

excessive

funding costs.

"Because of
the

of

bank

a

can

take

advantage of all the benefits and
the

at

the

time

create

plan it

may

same

kind

of

tailor-made

fit

to

its

exactly
desire-

particular

V

needs."

The general purpose of the plan

ii to enable
how
its

bank,

any

its employees, to set up
individual pension plan.

Manufacturers
been

lished

in

-

banks,1947

banks
-

-

a

Plan in

surance

500

benefits

now
it

•

for

providing
its

corre¬

having
estab¬
Group Life In¬

which

more

capital

to

elected

S.

April

Faller

the

assets

Trust

&

*

*

County

Plains,

first

Trust

N.

has

Y.,

duties

men

■

assistant

in

Mr.

$50,000
dividend

serves

with

position of Viceboard
were

the

Lauren

and

of

If

installment

and

Vice-President

of

Union

the

was

1943,
1947

Bank

25-

Vice-

California

the

which

of

since its

he

Bankers

The

North

Berwick

has

been

member

a

went

capital

stock

National

Bovee
the

of

$75,000
into voluntary liquidation as

of March 31 and

Eugene

was

loan

ysis

was

former

•

([

*'

Bovee,

formerly

The

of

the

L.

Golden,

a

of

gold

reserves

to

and

forces

Mr. Ziegler

member of

was

was

also

also

also

the loan anal¬

either

department.
*

*

Amusement

Robert D.

*

O'Grady, formerly the

The common capital stock of the

Industries

senior national bank examiner for

First National Bank in San Rafael,
Calif, was increased from $500,000

Group of Bankers Trust Company,

the

New

trict,

York,

elected

an

dent,of the

since .1.952

has

been

Fourth

has

Federkl
been

-

Assistant

Vice-Presi¬

Auditor of Mellon

bank, S.

Slo$n Colt,

and

President,, announced over the
weok end.; Mr. Golden, w^io is at

Pa.
'

-Trust
,

5
TT

He

elected

*

»

succeeds

Dis¬

Pittsburgh,

•
■'

$600,000 effective-April

the sale of
•

-

J.

L.

.

auditor

-

of

35th

Thirty

stock.

Frasher,

Angeles,
his

new

*•<•$•"

;

-

Roy $0jBuchman,
ttye .Rockefeller Center office of who is remaining with the Bank
the bank, handles all matters per¬ in
an-advisory capacity until his
taining to the amusement world, retirement on June 30.




to

Chief

National Bank

Company,
''

v

Reserve

and

a

year

ize

of

the

iments, 'but also

branch

currencies.

as

office

Bank,

of

add

was

com¬

to

debt to
-

for

its

monetized

.government

provide-artificial reserves
monetary

system,

it

is

gold

in

terms
a

a

all national

of

quest for a de¬

"

valuation of the dollar.
•';

*4

*

t

I wish to make clear that a

valuation of

a

currency

and

*

-.

de-.

is visually

of the lack

care

of balance between internal

prices

world

prices by a change of
the exchange rate, while a world-

.wide

adjustment

in

the

of

price

gold is designed, to

reestablish a
normal relationship between gold

to

accept the

between

production and the produc¬

currencies with

countries

a rmeans

we

to reestablish

as

designed to take

assumption that the U. S. can still

Los

recently observed
with
the
Bank.

years of service

Even if

so

relationship

Many people confuse the quest
a world-wide rise in the price

to

'sustain confidence in the national

pur¬

present

for

by J'to settle foreign balances of pay-

-

the

tion of goods.

gold serves not only as a means

,

normal

gold

monetizing of debt.

in most

fatwith

of the dollar.'" This
best be done by changing the

can

a

con¬

our

compatible

power

price of gold

problems it is vital to real¬

that

Therefore
and

money,

chasing

In considering the responses to
world

should be to stabilize, as

sound

_

*

California

Calif,

'

1,

States

wages.

feasible

as

by

United

exercised

has

the level of prices

on

cern

many

the

by monetary
inflation

the

its influence

tamper with fake reserves

continue

or

*

forces

inflation can be
deflation,

monetary

remedied
once

central banks
countries
to
exchange
controls;
it

maintain

a

,

fnember

that

have

rebuilding of adequate

manager

than 50% due

by monetizing of. gov¬
debt.
I do not believe

ernment

even

present price of gold pre¬
the

vents

dollar.

the

of

to inflation

prevent a strong world-wide de¬
flationary trend of prices.

Jr.,

J

'Herbert

governments

department,

which Warner Heineman

assigned.

*

the

"devaluation"

since 1939 by more

by its increase of production,
if we are to stop inflation and yet

the board in¬

T.

analysis

absorbed by
The First National Bank of Bidde-

if

untenable

and

in

people contend that a
the price of gold means

They simply forget that the dol¬
lar has already been depreciated

and

Heineman,
William
L.
Olsen, and Edwin P. Ziegler, all
named Assistant' Cashiers.
Mr.

■.

Bank, North Berwick, Maine, with
common

rise
the

in the long run.

us

All

Warner
-

world

the

by

inception jn 1947.

Others elected by

Bedford.
•

VI
Some

liquidity in gold has to be restored
by a change in the price of gold

clude,

•

would

we have created a sit¬
pernicious to the rest of

uation

the gold reserves issue

not

tained. Therefore the international

has
been
ap¬
pointed to replace Mr. Holmes in
-•

other
is
only a matter' of how the ex¬
isting gold stock is distributed
among the various countries.
in

States;

United

the

words,

present

Associa¬

division,

•

.

tion, trust investment committee,

White Plains and Richard F. Carr,
now
-with
the
bank's
personal

*

the

account

by

government
reserves v the

monetary

present gold reserves ap¬
inadequate even if we take
the large stock held

pear

into

al¬
lowed the growth of money and
department in 1939, and elected credit greatly in excess of what
Assistant Vice-President in 1951. would have been possible if the
Mr. Conley was one of a group conditions regarding the converti¬
of bankers who helped organize
bility into gold had been main¬

President, currently in charge of
Mount Kisco office, has been
assigned to the main office in

*

The

as

countries
;

level

prices, creates the danger of
important ■- setbacks and

sudden

reserves,

Conley, has been with the
Union Bank since 1935.
Starting
as
Manager of
the investment
analysis
department,
he
was
named Manager of the investment

the

♦

States

and

rise of wages

or

large decreases in our imports.

not have
heights and
the
gold production
would be
much larger (because costs would
be lower).
B.y maintaining our
price of gold at $35 an ounce and
allowing the price level to in¬
crease, thanks to the monetizing
of debt and tampering with fake

loan

in

other

Out-

wages.

employment

full

at

maintenance

and

had not used

as

price

real

Assistant Cashier in

most

1939.

we

reached

loan

United

the

in

as

debt

collections,

aiming
the

production of gold, but
of huge monetizing

in

debt

and

prices

inflationary monetary policy,

own

relationship

normal

a

the

since

with

Mr.

also announced that John

-

Of

most

the full

by

hypnotized

gold standard system with

a

flexible

outcome

well

started

der

gold production,

level. Now, the
present level of prices is not the
result

autonomous

of

system

a

employment doctrine, the reserves
need to be much larger than un¬

systems which use

price

general

ounce)

an

monetary management with

expansion which gold re¬
make
possible,
and tne

credit

on

$35

at

money

countries

the stock of gold,

the

the

under

gold as reserves of central banks
there is a relationship
between

Angeles

the

mainly to the rise in prices. Yet

1

In monetary

barely 25 to 30% (in dol¬

supply has in-.'
creased about four to five times.
International trade is about 2l/z
times
the
amount
in 1938 due

of

power

of

have increased since

measured

while

gold is made to con¬

the purchasing

to

of the free
the U. S. A.

reserves

(outside

1928 by

to monetize debt
supply of money
an extent that

us

dollar.

the

Year Club.

Holmes

Assistant

Los

Herzikoff

member

the

from manager of the Bedford of¬
fice to manager at Mount Kisco.

Macdonald,

form

and, recently was assigned to the
commercial department. He is a

development duties in
and

of

by

Assistant

at

analysis work in the main office
Chester

the value of

if ' 'r

':

for

gold

Russia)

lars

and credit to such

com¬

departments successively. He

head of the cost analysis

and

its

from

if

Herzikoff

elected

remain

of

power

and increase the

.

according
to
Ben | R.
of the Board

N.

estate

will

supervision of the bond portfolio.
Mr. Ungemack will go from cost

credit

.

managing '

soon.

will

Kammerer

was

• •

and

the hyper-elasticity of
Federal Reserve System made

ago
as
a
messenger,
advancing
through various assignments and

an¬

at the bank's main office in White

It

■. •

,

Union Bank & Trust Co. 32 years

Company,

ant Treasurers. All three

H.

•

.

stock

a

.

Co.

8,

Mr.

*

Kammerer, Jr., John C. Holmes
and J. Purdy Ungemack to Assist¬

Port

.

H. Conley.

F.

to business

■

increased

Elected to the

promotion of Charles

department

•••-

Meyer, Chairman
and President,
j

N. Y.

as

i

vary

the

of

soundness

the

in

world

of our
value, which is gold.

purchasing

it possible

"H

•• v

•

Director of Un'on Bank

a

Farrv

Plains

appointed

George M. Thompson, was

women

fices at St. George and New Dorp,

new

4

stock

if

President

assume

Dec.

on

to

made

is

The

in
of
with

power

However,

effective March 31.

balance sheet shows assets of $63,-

nounced the

4

by

$150,000

ford, Maine.

than

participate.
if

and

Theodore

bank's

Florida,

given for

was

men

the

White

was

-

totaled $13,957. This current

The

Bank

he
•

mon

celebrated

said

Trust'Company

pioneer in

a

employee
spondent

,

matter

few

own

has

no

Detroit

when

1933,

Oak,

year

tfye great flexibility

program,'

The

affiliated

became

•

their 90th birth¬
days and were among the early
depositors of the bank.

Mr.

months our trust of-

some

Staten Island

dollar

the

Dodge

❖

Savings Bank,

tea and reception

t

the

the

its President.

an¬

who have passed

it into effect.

carry

the

our

5,

r'

York,

New

President

of

President

States.

with

a

April 12 its 90th anniversary,

15

of

purchasing

to maintain con¬

means

a

as

national currency.

system

monetary

a

the

which

standard

,

domestic

2,200

Office
United

731,537. The bank has branch .of¬

April 8.

announce on

was

if

The Staten Island

a

it

wanted

also

fidence

of

Act

Gold

that Congress

realizes

one

ment of international

value.
our

for the settle¬
balances but

countries not only

with our

tampering

reads

one

1900,

The First National Bank of Live
i,t

on

Dodge resigned these posi¬

tions Jan. 15, 1953, when he was
appointed Director of the Bureau
the Budget in the Executive

Harkness.

Stapleton,

office.

Wimpenny

elected

was

If

of

April 12 by President

on

of

April 16, 1954.

Mr.

York,

in

Street

Mr.

New

nounced

April, 1946. Mr.
Gartner is assigned to the Bank's
Canal

of

standard

*•

Ammidon

Hoyt

is

Mr.

Trustee of the Greenwich Savings

Bank
was

if

v

periment

on

posited to his credit in the United
States Treasury, where the first
President had a personal account.
■'■■■y-i'..'- '•

important to understand
that our "managed currency" ex¬
is

It

of

price

the

in

increase

gold is also necessary in order to
increase the liquidity of the free
world. Gold is necessary in most

Experiment

Our Tampering

rector and Chairman of the Board.

checks, there is also a promis¬
sory note of the State of Virginia,
endorsed by Washington, and de¬

V

The
IV

Di¬

a

money.

gold standard.

April 6, Joseph

re-elected

was

the 1929 depression its
character and broke the

As Chairman, Mr, Dodge will re¬
sume
his former duties as the

are

signed by George WashingIon, Abraham Lincoln and Dwight
D.
Eisenhower.
While most are

Appointment of Morris Gartner

Dodge

more

any

other countries because

gave

severe

practice cannot be
by most of the
their peo¬

this

that

experiment ple have lost confidence in fiat

currency"

"managed

of

the Board

of

Mich., held

troit,

items

New York

meeting

a

fact
used

which made possible the

System

if

Directors of The Detroit Bank/De¬

of historical and

the

in

if

that

At

specialized

Included

power of gold.
It is the hyperelasticity of our Federal Reserve

•
t-

financial American documents.

Overseas Division at Head Office.

Of Gold Standard

the Bank's em¬

ployees.

Manuscript

They

3

page

and

Comptrollers

Richard

and

in the new location.

manager

World Needs Restoration

Auditors, he helped to organize
the Pittsburgh chapter in 1927. He
has
had the longest
continuous

by

York,

in the collection

assigned

be

owned

will continue

Vice-President,

ant
as

to

bank,

new

a

Bank

of

Los Angeles.

be called the
North Broadway Office, is located
several blocks from the old loca¬
tion. Harold F. Batchelor, Assist¬
The

and

Pennsylvania VicePresident of the National Associa¬

Formerly

next

New

both

Society."

Nourse

is

jrom

on new quar¬
Bank's Federal

northeast

in

Office

Manager

Office,

"

has begun

Work

ters for California

by

service of any of

Stein

E.

members

are

President in

will

the

for

collection

Maass,

Resident Vice-

Cuba,

be

to

of

The ex¬
the most

for

continue

Nathaniel

more

recently

office

Street

issued

Monica

Santa

the

Continued

Bellon Bank for
its correspondents. The Tax Aid
for
Banks
and
The
Audit Aid.
tions

its

and

will

The

d

who has

lon

Fach, Assistant

Ted

by
of

Buchman, who joined Mel¬
National Bank in 1905, was

appointed Chief Auditor in 1946.
He is the author of two publica¬

several months.

in
n

free

and

Mexico

picture

kind, and never
public display,
open to the public,

of

loaned

before

has served the

years

believed

complete

Bank

Columbia

57th

and

Bankers Trust Company.

a

Vice-Presi

dent.

motion

the

and

drafts, personally
signed by 29 different Presidents
of the United States, are currently
being displayed at the Park

York
on

particularly

and television business.

Checks

•

fornia Bank.

Office, and 25-

service anniversaries were
marked by Jack Fromm, Assistant
Vice-President, Public Relations
Department, and Glen L. Schluter,
Assistant
Vice-President, Credit
Department.
Twenty
years
of
service were completed in April

Mr.

California
of Cali¬

of

Brittle,

Company, affiliate

Trust

year

Comptroller

rency

Bankers

and

ETC,

REVISED

Sixth

Ohio.

Columbus,

manager
and Grand

R.

Norman

by
Glenn
L.
of the Bank's

Pearce,

with the National Bank

career

April

in

O'Grady, started his bank¬ pleted

Mr.

ing

Thursday, April 15, 1954

...

production and the production of

goods-without

giving

rise

to

strong

deflationary ,.«trend

prices.

The

„•

adjustment. in

,

a

of
the

price of gold is essentially anjnternationaL
i'l-

issue-

and
Lt

M

.does.; not

Volume 179

Number 5316

The Commercial and Financial Chronicle

...

(1697)
••

"r

r

necessitate

'

*{< (T

.

change in exchange

a

rates.'

*_ /;'

"

■

j ■"

'

-'■i.-.V

\

of

vn

' '

-

.

: :

eral

'

Some people maintain that the
discipline oi the gold standard
•

will function when

don't need

we

it and that Congress or parliament
will abolish any law preventing
inflation if they think they
to have it.

is obvious

It

that

ought

restraint if

it

hyper-elasticity of the Fed¬

Reserve

System

United
power

chooses.

But

it

is

well

The

least

becomes

too

severe

only if we mismanage our mone¬
tary and fiscal affairs and if the
commercial
of

banks

abuse

the

use

credit, and particularly if they
long term or inflationary

impossible
abuse

legislation
the
by the banks and

by

credit

of

to amend the Constitution

prevent

from

us

gold standard

so

suspending

industrial

buy

the

free

free

market

demption

for

of

will

people to hoard

gold.

lead

Historical

t

facts do not support this view.

long

as

affairs

monetary and

our

will

be

managed

compecan

of

only

be

the

the

help

tection

'

against .the

rise in the

a

to

thought
what

be

the

Soviet

suggestions

new

has

Union.

and

goods

prices

other

gold?

' The

First

that

low

Banks

Advocates

I would

Ihe

and

beginning that we
redeem our money into gold bul¬
lion or gold
coin, provided we
have a free market for gold.
(f) After a few years of opera¬
tion

undetf

versial

subjects should

not be

Controversial subjects should

the

not be ignored in the classroom—

the

on

should

contrary,
discuss

the

both

teacher

sides

of

any

of

to

us

gold

pay

fessor

As

mond E.

the

to

other

materials

buys from Russia.

Russia is

rendering the free world,
albeit by necessity, a great service
in selling gold to it.
It

to

seems

ment that if

sounder argu¬
don't restore mon¬

me

we

a

etary order we are strengthening
Russia's hand because we make
ourselves
flation

j

vulnerable

more

and

in¬

to

depression,

foster, social
-tion.

and thus
and agita-

troubles

What is wrong with the kind of
international gold bul¬
standard

in

the

V

;■

their

Worst yet,

least

dollars

should

bullion

gold
there' be

that

residents

cannot

into

gold.

they cannot hold gold.
we

a

expect from

standard

free

its

market

export

is

for

and

that

gold,

import

-.should ' be: possible without any
Interference from the government.
our

the

system

we

anomalous

have

put gold

position where

"money"

nor

a

mer¬

chandise.

(b) In

gold

a

there should be
between the

gold

and

standard
a

correspondence

purchasing

that

of

system

the

power

of

monetary

-

unit, in our case the dollar. What
we h&ve had in the United States
•ever

the

of

Institute

return

we

to

a

are

passed

since World War I is




a

kind

as

would

and

those

from

those

railroads

that

Concerted
As

this

has

healthy
sential

to

efficient

an

transportation

the

new

Federal income tax of

a

'

repurchase

of

income

stocks

bonds

-that

when

rail¬

nally

the

and

sold

discounts from

national

The

system.

times

second phase is contained
in section 312 of the tax bill.
Thiswould impose a
prohibitive tax
on
the redemption or

preferred

demonstrated, a
industry is es¬

railroad

been

two

The

is

been

have

of

have been covered.

even

emerged

outstanding.
being urged
possibility.

effort

forestall

railroads

with

would

coverage

for

of $2 mil¬

$1,040,000 would be imposed and
the
interest charges
would not

still

are

of

available
year

requirements.:.; Under

outstanding
that

There

proposal

presumably

bonds

bankruptcy

stocks

to

of

income

income

adequate

sections

written, how¬

now

they
penalize
all

ever,
with

these

one

case

with

and

at

preferred
substantial

par or stated value

individual

roads

origi¬

The

emerged from bankruptcy!'"^
difference between 105% of

the

original

obviously

sold

roads

Raymond

E.

Kirk

i

his

address

Kansas
on

March

when

31,

he

n

and

the

was

1954

recipient of the $1,000 Scien¬
tific Apparatus Makers Award in
Chemical

Education.

Dean

Kirk,
who also is head of the chemistry
department of Brooklyn Pol.v, was
honored

at

dinner

a

Divi¬

the

at

sion of Chemical Education of the
American Chemical Society in the

University of
rence, Kansas.
"The

Kirk

Law¬

at

y

an

inquiring mind," Dean
"He

asserted.

and

document

to

dis¬

senting views.

Ample time should

be

devoted

the

of

any

to

scientific
is

topic

current

cons

which

on

difference

opinion.
"To

and

pros

.

.

of
.

neglect the controversial in

movements.

is

cathedra

statements

are

an¬

necessary

seldom

devoted

teachers

young

is

anywhere near the de¬
mand, he pointed out, partly be¬
cause
of the great difference be¬

'starting

chemical

salaries

industries

in

the

in

and

the

colleges and universities.
"These

differences

persist,"

to

would

starting

like

are,

he

much

very

academic

very

continued.
to

salaries

see

come

closer to starting industrial

salaries.
never

person

However,

I hope they
equal! The young

become

who plans to teach chem¬

istry might well have his motives
tested

his

and

sincerity

by financial tests.

proved

The profession

of

teaching, like that of the min¬
istry, can always profit by some
measure

of

devotion.

There

for

many ways open

that

'gladly

teach'

Dean

Kirk

he considered

science

should

who

of

made

can

undertake

are

never

are

never

settled.

"The teacher must
ent

all

sides

topic

as

fully

as

he has

must

himself

of

a

it

clear

that

thorough training
more
important than

reading."
The
general

observation
chemistry

or

course

Neutralism

a

always pres¬

that

controversial

compartments

further duty!

express

is

,as

sions of curricula and of

an

fatal

He

opinion.
to

the

knowledge

and

that

an

ap¬

'

Although
for

warned

tion

conceding

oganization

either.

might well do his
best to encourage disagreement on
the part of his students. He is not

in separate

comes

ities."

done

he

ob¬

preciation of human culture comes
only from a study of "the human¬

development of independent
thought as is dogmatism. Having
this

the

jectives of college training suggest

fairly as he can and as
time will permit. How¬

it us

might

cussions

in

in

and

universities,
against
too

thei need

administra¬

Dean

Kirk

much

of

Urging that more emphasis
be placed upon a thorough and
complete understanding of objec-

sold

prices

would

burden

at

to

debt

that

conservative

any

haVe

on

serious

impose

entire

our

is

defense

the

that

the

This

There

is

are,

deduction

inequity

such

of

in¬

for

The

interest.

gross"

treatment

is

of

outstanding were issued
ganization in exchange

in reor¬
for old

$40

class

tives and procedures
of

organization, he

in education
details

all

faculty in

fields

munity

discussions

than

ter

as

much

are

table

votes."

over

or

martinis

result from formal

ever

of

stock

($2

prefer¬

par-for-par

original selling

$40.00

the

as

price,

have

the

in f

This

to

pay

pjfiee

effective

the
a

difference,

re¬

company

tax of 85%

or

$32.39

a

share, to effectuate the plan. That
obviously'be an impossible
impost for the s&ke of revising

would

the

capital structure.

R. D.

/

meetings

,

"

with
->

u

5-to-4
Vi

,

Cavanaugh Now

With Paine, Webber

bet¬

formalized
administration so often

upon
to
insure
'faculty
democracy.' Much more faculty
democracy can be induced at the

can

Pacific

originally sold below $2.CG
Taking $2.00 as the base

would

com¬

a

relied

luncheon

Western

discussed

"A"

demption

teachers.

and

highly

schemes of

>

would

income debentures.

105%

Free, frequent, and oftentimes in¬
formal

was

field and in

exist

scholars

bill

share.

a

said:

any

should

of

and

dividend)

5%

stock

of

and much less upon formal

were

ential
new

and

now

the

previously
in this column.
Chicago & East¬
ern i Illinois,
for
instance,
con¬
templated offering holders of its

the

bonds

of

any

Illinois

ern

of

income

bill

make

highlighted by the fact that prac¬
tically all, if 'not actually all, of
railroad

such

any

the

)

section

which

as

allowed

now

bond

when

impossible consumma¬
such plans as were
contemplated by Chicago & East¬

310, which collectively, have been
interpreted as eliminating the tax
come

practices'

House foresaw

tion

written.
first, sections 275 and
passed

ICC

up.

also

zation

bill

the

orderly future
In this instance

financial

consequences

question of penalizing one type of
security that was provided for in

tax

a

to

pro¬

involve

dr.fwn

virtually every railroad reorgani¬
by the ICC.
There are two ways in which
the railroads might suffer if the

by

a

heavy penalities.
It is almost impossible to believe

reper¬

Aside from this practical
there

respect

upon

retirement.

would

first

assure

With this

felt

ex¬

when

also

with

insisted

order

moral

"A

a

through

time

~

training in teaching methods for
the prospective teacher. Teaching
methods, he said, "can and will
be acquired by the young teacher
either

this

vision

additional burden imposed at this

are

a career

those

only

academic careers."

in

capital.

new

background

consideration

much

issued

bonds

low

...

and

likely

existing
income
preferred stocks. * As

income

sinking fund operations,

able

"I

out¬

the

and

most

course,- effectively
the
present
capital

jserious

set-up.

tween

bonds

Analysts point out that even
earnings are not adequate to
support
the
necessary
physical
improvements or to attract the

periments
theories

of
into

now

committee

troversies

<

lays.

problems of recruiting and
retaining teachers of chemistry
must
be considered realistically,
Dean Kirk said.
The supply of

price

was to be redeemed
would
be
subject to

would,
freeze

liberal

maintenance

th,e
first

the

tax, payable by the com¬
One result of any such tax

tremely

to

stock

and

85%

an

addi¬

la

which

at

pany.

improverriETiv?;

than

finished, its
final, its con¬

retired

or

price

preferred
issuance

structures

derstanding of the cultural value
of science, the speaker asserted.
Too often, he
observed, discus¬

never

or

after

a\ which it

main¬

an

should give the student some un¬

are

To

such

current science is

likely to result
in a sterile course.
Chemistry is
a real, a
growing science: Its ex¬

again
freight

capital

I

The

avoid

must

dogmatism both in his scholarship
teaching. He has a duty
present

subject.

an argument,
attempting to foster inde¬
pendent thinking by his students.
Weight of authority is one thing,

he

so

cultivate

upon

bonds

Jhe past five or six years the rail¬
roads as a whole have spent in
excess
of $1* billion annually on

and

room

controversial

a

science
must

called

impor¬

adequate plant to provide
emergencies heavy ex¬
penditures on roadway property
and equipment are necessary. For

•

teacher

and

open

Kansas

be

troop

tain

engaged in winning

at

City,

of the most

one

ito handle the bulk of the

for

v

■

are

tion

of

Brooklyn,

ever,

is neither

conditions

the

ignored in the class

Polytechnic

there

States?

redeem

:and

have

we

(a.) American

"The

Graduate

to

restricted

'United

the

and in his

j-

X

lion

Kirk,

of

School

is

free world than

a

the

of

Gold

matter of fact, I contend that

a

Ray¬

:Dean

we

-

to fear that

it.

important

the free world

-it

on it,
advice
given by Pro¬

iS( the

maintained

reason

more

most

:are

is

otherwise

hoard

preservation of

:m

opinion

gold

that

proof

low;

might

certainly

In

field, and then
give his own

"gold policy" is proof that

people

,

these

consider

Kirk, recipient of the $1,000 Scientific ApEducation, holds contro¬

.

would have no

'

the

at

Open and Inquiring

an

Prof. Raymond E.

artificially and ar¬
at a low price is the
production of gold.
Our

price

es¬

paratus Makers Award in Chemical

ftiaPganese or
goods and hOt -for

best

artificially

consider it

not

Mind in Chemical Education

prices?

bitrarily
(very

price

new

If

when

contingent in¬
requirements of $1 mil¬

terest

advantage of by
closely-held family

small

obvious

such interest last

taken

The

elimi¬

implications of this

hypothetical

a

railroad

a

not

tant cogs in our defense efforts
and in event of actual war would

maintained

small

for

gold coin standard.

Reserve

for

Russian

is

at

it'acceptable to

normal
•

plications for a large number of
railroads.
The sections in ques¬

lion.;

price

other!"

a

considers

been

(e)

essential

are

had

to

standard

The

proposal

began last week, has serious im¬

would

deductibility of fixed

interest.

hearings

readjustment of the price of gold.

subject in his

seiaPg

market

Senate

lion

controversial

are

free

to

which

on

were
designed to plug cer¬
loopholes which it was felt

ex

Why is

well

precautions

the

and

tion

largely unsupported. Furthermore, ,on this theory, are we not
helping the Reds when we
v

and

already been passed by the House

It

bearing bonds.

provision

nate the tax

tain

currently

gold

of

ounce.

fixed interest
new

gold

large produc¬
large reserves

of

re¬

It apparently has not been
very
widely recognized that the omni¬
bus tax revision bill, which has

be, assuming a worldwide

the

should

as a pro¬ V'■ '

price of gold would

the

tion

an

years

technical
on

sential

gold

a

are

_

long

determine

teachers should present all sides of

of

.

Return

following:

Federal

;

the

all,

take

gold

our

supply.
the price

(d) A change in
gold to about $70;
would

closer

a

money

the

deterioration

benefit

Soviet Union

the

and

Proposed Tax Bill Would Penalize Many Carriers

Reserve

create

should

Some people hold the view that

r

Federal

to

as

monetizing of government debt by

the currency.

IX '

•

so

of gold should be to avoid a
strong
deflationary trend of prices.

Stoppage of inflation and
specifically stoppage of further

People have no
desire to hoard gold because gold
does not earn any interest.

;

System

:

incline^ to buy gold

of

to

A change in the method of

operation of the

proximation, what the

the

on

(a)

discipline
and
banking laws) no one will

proper

,

ii

with

standard

export and import gold.

(c)

organizations.

consider

I

1

some

As

tently and wisely (and this
gold

to

fiscal

done

-

steps
return

a

in

gold

the United States and the freedom

by some experts, I believe that we
can
calculate, with a rough ap¬

Gold Standard

The

hold.

may

market for

need

they

Prerequisites

free

Contrary to the opinions expressed

<:

XII

are

currency

commod¬

a

limit,

one, of gov¬
which the Federal

Banks

A

There

upper

selling gold
They should

users.

gold

the

by some that a
gold or the re¬

get
where

anomaly

market.

in time of peace.

is contended

the

^vV..x

for
It

from

We should also stop

to

as

VIII
•

gold, to ex¬
as they wish.

ityto

credit.

The remedy is therefore to make

do right
right of the

gold is not considered

extend

bank

(b)

banks.
an

..

37

-

the present

very near

serve

In other words, we should restore
a
free
market for gold, to
away

be

relationship between

should

we

also

Reserve

-V

is to restore the

now

:

.

the

of

purchasing power of the
instead of the reverse, as
should be the case in a real gold
standard system.
xi

"

commercial;,

should

dollar,

to

mechanism

the

v'ri

ernment bonds

the

to

'•« v'"'. 1 •'

the

of

power

a

so

and

States,
the
purchasing
of gold is made to conform

keep in mind that, Americans to hold
the discipline of the gold standard
port and import it

r

:

or,
if we
dollar standard. Because

a

great *. economic

democracy,
endowed with universal suffrage,
can
forego any kind of discipline
or

'vvrp-.*!

arbitrary, standard,

prefer,
of the

•

'vjli

(Special to The Financial

.

,

Chronicle)

LOS

ANGELES, Calif.—Robert
D. Cavanaugh has become asso¬
ciated with Paine, Webber, Jack¬
son
& Curtis, 626 South Spring
Street.
Mr. Cavanaugh was; for¬
merly with J. R. Williston, Bruce
&

Co.

and

of Los

Conrad,

Bruce & Co.,

Angeles.

A

college faculty has the re¬
sponsibility of maintaining an at¬
mosphere of enthusiasms about
learning,

the

maintain

to

speaker
such

good teachers

an

more

are

equipment

laboratory
buildings.
"I have seen

tories

planks
there

of

'enthusism

where

laid

were

the
on

men

CHICAGO, 111.-CharlesG.

Mortimer, President of General
Foods Corporation, will address

apd

the

vestment Analysts Society of Chi¬

good teaching and

development

scientific

important

Chicago Analysts to Hear

"U

than

the

noted, and
atmosphere

outstanding
in

labora¬

those

of the In¬

on
Thursd^, April 22, La
Georgian Room, Carson Pirie
Co., at 12:15 p.m.

cago

the

Scott &

On May 6, George P. Hitchings,
Manager of the Economic Analy¬

labora¬

sis Department of the Ford Motor

sawhorses,
in

meeting

but

degks

tories," he declared.

luncheon

were

Company, will be speaker.

_

„

The Commercial and Financial Chronicle

38

in

able

9

Continued from page

Agriculture as a Resource
To the Chemical
is

in the phos¬

others and

and

lor

defoliation

been

Sulfenone,

etc.

nematodes

fact that 80 million

weed control

I wonder how many

chlorinated

the

with

conditions

hydrocarbons but more slowly or
to a lesser degree with the phos¬

The general indication,
is that the insecticides
currently available or undqr de¬
velopment will be used more
widely than now and that such
use
will be profitable and ac¬

phates.

however,

complish results that have not
possible in the past. ' '

been

The most intensive

Fungicides.

fruit,
vegetable and special crops rather
than on field crops but there are
some unsolved problems, such as
the rusts of small grains, which
would be large potentials if good
of

furfgicides

chemical ' control

is

on

measures

are

developed.
Sulphur, copper and
mercury products dominated the

field for many years
still important but nu¬
new
organics have ap¬

fungicide
and

are

merous

peared that have advantages over
materials

older

for

many

uses.

Among the new materials are the
dithiocarbamates, glyoden, captan,

Chloranil
and others.
Phygon,
Antibiotics, such as Actidione and
,

,

Streptomycin are giving promise
special uses on fruits. Some
of these materials are protective

for

in

that

action,

is,

they

prevent

infection by the organism, others
are eradicative in
that they will
established

kill

systemic
the

and

pathogens

attention is being given to

much

in
A
modern

materials that move
stream of the plants.

sap

characteristic.'

of

many

fungicides is that they are very
specific.
One may be effective
against cedar rust, one good for
apple scab and one for cherry
leaf spot but there are cases of
rather general activity.
Host

tolerance, or lack thereof, is fre¬
quently a determining factor in
the acceptance of a fungicide.
Soil

Chemicals

Fumigants.

jected into the soil for the
of

trol

certain

wireworms,
been
is

for

used

only

and

in¬

con¬

insects, such as
nematodes have
time

some

but

it

recent years that the

in

seriousness of the nematode prob¬
lem has been realized.
Farmers
research

and

cognizant

be

ually

have

workers

of

the

us¬

root

knot nematodes, which are wide¬

spread, and of
such

as

golden
them
fact

the

been

there

that

special forms
and the
but most
of

beet

nematode,

have
that

forms

some

sugar

unaware
are

to the roots of plants.

generally
the

this

do

so-called
is

many

serious

cause

of

the

other
injury

Nematodes

thrive well in
"heavy" soils and

not

perhaps

fortunate,




.as

meadow,

spurge)

pasture

a
a

think

station workers are
objecting to the policy followed
by some of sampling products
that
have
not
been
thoroughly
evaluated. They also resent being
asked to work with products be¬
experiment

trol

of

vegetation

has

been

producer has become
certain that he can
manufacture and sell it at a price

reasonably

an

improve the growth and health

opened

of

vegetation

of

fields

new

many

etc.

are

control

the

animal

or

control

to

it

you

see

ing ethylene dibromide, carbon
tetrachloride, ethylene dichloride,
carbon bisulfide, methyl bromide

chloropicrin. They are usually
combinations of various kinds.

and
in

fumigation is done
with methyl bromide, HCN and
chloropicrin and residual treat¬
ments of walls, floors and empty
bins in mills and grain storages is
made
with
lindane,
piperonyl
Mill and space

and

areas

These

large

a

A

chemicals

of

number

large

in

and

their

are

ical industry in general and large
amounts of solvents, emulsifiers,

wetting
agents
stabilizers,
in¬
4- hibitors, etc. are; sused in the
formulation of agricultural chemdichlorophenoxyacetic, 2,
5icals.
j
:
butoxide-pyrethrin mixture and trichlorophenoxyacetic, 2-methylResponsibilities.
I
have
been
4-chlorophenoxyacetic and 2,4, 5DDT.
trichlorophenoxypropionic acids; depicting a bright picture-for the
Defoliants and Desiccants. The
trichloroacetic acid, 2, 2-dichloro- use of chemicals; in
agriculture
development of mechanical
propionic acid; 4, 6-dinitro-o-sec. and I am sure that I have not
harvesting
equipment
such
as
butylphenol, 4, 6-dinitro-o-cresol exaggerated in any way with re¬
cotton pickers and combines has
and pentachlorophenol; ammonium gard to current use and I am con¬
created a need and demand for
fident that continued progress in
chemicals to defoliate or mature sufamate, phenyl mercuric acetate,
isopropyl - N - phenylcarbamate, the development of new agricul¬
crops
so that
direct mechanical
and isopropyl-N-(3-chlorophenyl)
tural
chemicals
apd
intensified
harvesting of the standing crop
educational programs with farmers
can
be accomplished. There are carbamate; 3-p-chlorophenyl-l, 1dimethyl urea and related com¬ on the use of those now available
two
general objectives in such
pounds, 3, 6-endoxohexahydroph- and others to come will result in
operations; (1) to remove leaves
thallic acid; N-l-naphthyl-phtha- a
greater market than is now
from or to ripen or desiccate the
lamic acid, sodium 2, 4-dichloro- being enjoyed. On the other hand,
crop to be harvested and
(2) to
sulfate, maleic I feel that it would be unfair to
desiccate weeds growing in the phenoxyethyl
all concerned if I fail- to indicate
crop
that
interfere
with
the hydrazide, potassium cyanate,
calcium cyanamide, Stoddard and discuss some of the problems
harvesting operation. There is also
a

strong interest in chemicals to.

control, early in the season,
that

weeds

interfere

at

the

harvest.

of chemicals are
used for cotton defoliation. An
estimate for 1952 was 40,000,000

Large

amounts

used

are

ment.

are

or

under

them

Among

develop¬

are

2,
14,

solvent and aromatic oils.

and

responsibilities which must be
by
any
segment
of the
I have given some indication of faced
chemical industry that elects to
the wide variety of uses to which
enter the agricultural field. There
herbicides may be put and the
that

chemicals

are

used

and

I

are

steps involved in carry¬
compound from the labora¬

many

will be interested in ing a
tory to the point where it can be
pounds. Cotton is treated with any knowing how extensively they are
sold to the farmer and I can as¬
one
of several chemicals or actually being used. This seven
with
the
corn
belt sure you that only a very small
combinations such a calcium state area

cyahamide,
sodium
chloratesodium pentaborate mixture,
sodium
monocyanamide,
pentachlorophenol, Endothal, mag¬
nesium

chlorate

and

sodium

think

you

states

to

the

small

immediate east and

industry to the
north
in
three
provinces
of
Canada offers a large market for
herbicides and a rather complete
the

grain

surveys

usually desired on cotton which
requires a chemical which sets up
in the leaf a condition that results
in the formation of the abscission

acres

layer and consequent dropping of
the leaf. All the materials just

for

1950

A detailed report of

mentioned,
except pentachlorophenol,
will,
under
favorable
conditions, cause defoliation of
cotton. Desiccants, on the otter
hand, simply kill leaves and plant
parts without the formation of the
abscission layer. The presence of
the dead leaves is not

objection¬

for

this

chlorate-magnesium
chloride
mixture.
Actual
defoliation
is

shows that
of

a

area

total of 25.9 million

treated with
4-D and
2, 4, 5-T (12.2 in the United States
and 13.6 million acres in Canada).
crops

were

14.6 million pounds of 2,

herbicide use
in 1953 in Minnesota 1 gives us an
interesting picture of what hap¬
when there are weeds to be

pens

of
them
are
enough to go all the way.

percentage,

good

pounds

are

made they

are

com¬

6

4,

Stahler, L. M., Use of 2, 4-D and 2,
5-T. Agricultural Chemicals, April,

1951.
1

Bjerken, Sig., 1953 Chemical, Spray¬
and Weed Infestation Data. Minne¬
Section of Weed Control, Circ. 4,
December, 1953.

er,

of

struction

These are important steps

plants.

will

but

pilot and production
here.

discussed

be

not

formulation,
toxicology and residue studies.
Other

problems

are

Formulation. Most organic com¬
are

natural

state and have to

be put

wettable

of

form

the

into

their

in

usable

not

pounds

or

into
liquid forms that are water or

soluble

soluble

oil

dusts

powders,

involves

or

This

emulsifiable.

or

careful study of wet¬

a

ting and dispersing agents, solid
diluents, emulsifiers, solvents,
stabilizers,
inhibitors, etc., and
there is no rule of thumb that

Packaging, cor¬

be followed.

can

water

types-of
important.

various
very

compatibility
with

materials-' and

other

with

life,

shelf

rosion,

,

all

are
-

^

important
is the toxicological study of the compound.
This requires much time and is
costly. The first step may be re¬
ferred
to
as
the
"preliminary
toxicological study" and is prin¬
A

Toxicology.

and

necessary

very

step

cipally to determine unusual
handling hazards in plant pro¬
duction or in the field. The cost

preliminary test will range
$300 to $500 or more and
this is made on many compounds.

of the

from

step is "toxicologi¬
evaluation" which consists of

The second
cal
a

90

to

120

administration.

repeated
tests

feeding test on
the effect of

day

determine

to

rats

Other

made

at this

may

also

be

evalua¬
of
$3,000 per compound. The third
stage is the extensive toxicologi¬

stage and the cost of the

studies

cal

the

in

usually

is

tion

range

include

which

a

two

test with rats and
a one year study on dogs.
In ad¬
dition to these long-term studies
experiments
are
conducted
to
determine variations in species
feeding

year

and to learn how
is handled by the
This group of studies re¬

susceptibility

compound

animal.

quires about three years and the
cost for a compound may range

sub¬

from $25,000 to $35,000.
I think
to standardized screening
it
is
obvious
that
only
very
against various
kinds
of
promising materials are carried
organisms
(insects, fungi,
bac¬ into such studies.
teria, plants, etc.), to determine
Residue
Determinations. Resi¬
if they have any activity.
Com¬
due data for all croos with which
pounds that show activity in these
the compound is to be used are
tests
are
usually
subjected to
more
critical and comprehensive necessary and obta^ ^g such in¬
extremely
studies, i The "promising ones - .are formation is somef-""--"
difficult.
There "
o stages
carried to small scale field studies

jected
tests

i

■

chemical and the design and con¬

the

Steps in Development. The first

step is synthesis and when

for making the

ment of processes

of

activity

the develop¬

This includes

data.

materials

basic

manufacture

in¬

of

biological

with

along

agricultural chem¬
icals is great and goes far beyond
the chemicals just discussed. The
used

types

formation that must be developed

formulation of

intermediate

but there are other

important

equally

the signficant importance to the chem¬

for

market
chemical industry.
and

herbicide or
This is all important

fungicide,

secticide,

and necessary

under reforesta¬
problems offer a real
challenge to governmental and in¬
dustrial
research
organizations
species in

tion.

logical activity of a compound—
in other words, is it a good in¬

as
niacin, pantothenic acid,
choline, vitamin B3 and synthetic

competitive

have

with the bio¬

mainly

do

nematocide?

vitamin

remarks

foregoing

to

such

being put includes weed
crops
and on
crop

in

undesirable

The
had

diseases The list includes vitamins

control. Some of the uses to which

you

that farmers will pay.

as

have

the

fore

con¬

rooted

deep

given to the agricultural ex¬

are

will all agree that

you

of chemicals for the

use

reasonably good chance of being
satisfactory product before they

periment stations for study. Many

the United States in 1954.
I

con¬

in
both industrial and
publicly supported research or¬
ganizations that industry should
be responsible for carrying com¬
pounds through the early and in¬
termediate stages of study and to
have established that they have

172,631.
in use, 24,045.
Miles of state, county and town¬
ship roads sprayed, 36,133.

the

policy

all

feeling

and

Power sprayers

the

for

fixed

no

these various steps to
industry units adheres
but there is developing a strong

which

A; minerals in the form
the many grain
land; to remove trees, bushes, of calcium
phosphates, limestone,
storage structures throughout
brambles
and
weeds
of
many
potassium iodide, manganese sul¬
grain growing and milling areas1,
kinds from
pastures and range
fate
and
other
trace
that the grain in them is subject
elements;
land; to control weeds in turf; to antibiotics
to insect damage and that chem¬
including
penicillin,
control undesirable vegetation on
icals are widely used
to avoid
terramycin, aureomycin, and
right-of-ways of highways, rail¬
such damage. The great volume of
bacitracin; amino acids such as
roads, power and telephone lines, methionine and
lysine; suffaquigrain grown, stored, and milled
pipe lines and in or along drain¬ noxaline
for coccidiosis and anti¬
in this
seven
state area makes
age
and
irrigation
ditches; to oxidants to stabilize carotene in
such insect control an important
eliminate vegetation, by short- or
alfalfa.
consideration.
One
approach to
long-time sterilization, from rail¬
the problem is the use of protec¬
Veterinary
Pharmaceuticals.
road
road
beds,
bridge
heads,
tive materials which are applied
The' animal industry is an impor¬
around
telephone or
telegraph
when the grain goes into storage.
tant outlet for many pharmaceu¬
poles, in pole yards and other
Two products which are used in
tical chemicals but no attempt will
storage or special areas where
this: way are:
(1) a mixture of
be made to list or discuss them
vegetation creates a fire or other
piperonyl butoxide and pyrethrin
hazard
or
inconvenience;
to here.
and (2) calcium cyanide/Stored
Accessory Materials. The rami¬
selectively control vegetation on
grain is treated extensively with
of
the production
and
game land and to remove or stunt fications
several volatile chemicals, includ¬
when

with

of

leafy

good use.

some

is

cerning

brushland treated,

mentioned

used

are

materials

newer

Fumigants.
realize, they

Space

and

Grain

develop-

(field

weeds

and

perennial outstanding and even a revolu¬
bindweed
and tionary development.
leafy spurge and for the preven¬
Food Supplements: Many chem¬
tion of plant growth for rather
icals are used with animal feeds
loqg periods of time
but the to

and

seed

as

plant beds, nursery plots,

several other in¬
apparently de¬
velops rather rapidly under soipe

use

and is adaptable to
such

areas

still

and

were

materials

older

generally believed that not
than
one
in 2,000 carries

through to

large

The

effective
only for nematodes but for

small

following

Miles telephone and power line
organics and are still used
quantities, but the in¬ right-of-ways treated, 4,508.
Miles railroad right-of-ways
troduction of 2, 4-D about 10 years
ago
was
the beginning of this sprayed, 2,896.
Miles ditches sprayed, 2,201.
very important development. This
change has coincided rather
Another
interesting
estimate,
closely with the shift of much perhaps it should be called
a
farm labor to other occupations, I
guess,
is that 500,000 miles of
the rise in the cost of that still
right-of-ways will be sprayed in
in

Methyl bromide is very

Tolerance

sects.

x\

Thursday, April 15, 1954

.

There

perennial

Acres

is

more

of

era

of

not

the

wheat, oats, barley, flax
and corn treated, 2,671,309.

chlorate,

such

outstanding with flies and is de¬

veloping

-

plants

being
has been

condition

This

used.

sodium

as

is

This

Acres

compounds, arsenicals and
others were recognized and used
as
herbicides before the current

control

chemical

the

to

resistance

such

it

organized

treated, 37,704.

boron

dibromide and the
dichloropropene-propane mixture.

difficult to

is the

Soil

important.

ethylene

are

ment by insects of tolerance or

V))

An exception to this
Missouri where
cotton
create
a

undesirable

vegetation is one of the outstand¬
ing developments of recent years
in agricultural practices. Chemi¬
cals

in

bindweed

of chemicals

of

well

a

program.

tabulation:

available, and with the increased
mechanization of agriculture.

Another and even more

problem

serious

summarized

Acres

use

control

the

and

control

weed

of

fumigation is expensive and is
normally
not
profitable except
on
high value crops.
The two
most
commonly used materials

results that seemed
beyond attainment 10 years ago
but their use has not been with¬
out serious problems.
Some of
them, used for the control of
certain pests, have reduced the
populations of the natural ene¬
mies of injurious insects and thus
created problems that have not
control.

or

good reason for

problem and there are
undoubtedly other areas in this
district where nematodes are

complished

are

made

survey

on

economically

or

aware

serious

products have ac¬

before

not

of widespread

southeastern

is

pounds
of just four products
(DDT, parathion, a Id r in and
chlordane) were used in a recent

existed

reliable

a

making one.

insecticides used is very

year.
These newer

Lam

soil.

that there is any

923, Geigy 338, Dimite,
An indication that the vol¬
of

satisfactorily

area

Genite

large is the

controlled

the

as

desiccation

or

Herbicides. The
for

importance
in
this seven-state
but I doubt if there has ever

Systox, Pestox III, TEPP, EPN,
Others are toxaphene, ovex,

ume

such

that nematodes are

etc.

allethrin,

such

crops

crops

several other crops.

Industry

difficult to

very

treat

phate group are parathion, methyl
parathion,
malathon,
Metacide,

Aramite,

some

of alfalfa and 'other
legumes. There is a strong interest
seed

in

t

,

.

(1698)

and

as

duced

the number is rapidly re¬

they

are

moved

on

through

increasingly intensive studies.
Good

statistics

or

survival

of

to

are

not1 available but

a

mining
•ecoiid

method

sota

compound:

the fir * j
basic rrei
the chc

study,

velop

is t

is

to

a

d

.

to each cm*

be used.

Tj;

■■

" to

de¬

deter¬
and the
basic
which it
,,v involve
the

Volume 179

<12

15

to

Number 5316

or

more

..

The Commercial and Financial Chronicle

.

adaption procedure may be rather
simple or it may be extremely
difficult.
The sensitivity of the

Public

Utility Securities

method must be such that hazard-

of

amounts

our

determined,
is

safe

1

the

ppm

sensitive

be

be

can

1

to

be

can

instance,

for

that

residue

residue

if

method

the cost of residue studies but

they

to as much

may run

$25,-

as

000 to $30,000 or more for some of
*

difficult

the
used
V

impossible,

accurate

assemble

to

information

the

cover

screening,

It would

not

if

difficult,

to

be

to

are

Research Costs.

Total

be

that

ones

several crops.

on

of

synthesis,

and

advanced

costs

early

field study and formulation, toxi-

icological and residue studies, but
some
interesting
estimates
are
available.
Persing7 of Stauffer
Chemical Company, in 1951, gave
a
range of
$165,000 to $335,000
which
includes
production
re¬
search

and

pilot plant construc¬
tion.
Wellman,7 of Carbide and
Carbon
Chemicals
Company, in
a more elaborate analysis, arrived
at the seemingly staggering fig¬
ure of $1,383,000 and this includes
the

work

of the

cost

fell

that

pounds

all

on

com¬

the

along

out

of industry supported work
experiment stations and state

.way,

in

I

research.

Federal

and

think

research

active

with

man

the

in

a

company

agricultural

field

recently told me that his company
;had spent $2,000,000 on a product

•just

the

entering

jalso
tion

stage.

There

are

intangible factors that

some

One is the

important.

are

sales

Factors.

Intangible

*

ques¬

of

specificity which is the
> bane of the user because he would
Tike to have one herbicide, one
•insecticide and one fungicide and
it is- a problem to the producer
because

limits

it

volume

the

product and creates marketing
and inventory problems, but the
than

*

is

'"life

span" of

makes

it

a

is

■sometimes

producing

for

new

a

product.

f

hope I have not thoroughly

I

confused

on
this situation
soil,
crops,
weeds,
insects, diseases, nematodes,
■weather,
animals
and
human
'beings are involved the situation
can
become very complex.
I am
'simply
trying to indicate
that
entering the agricultural chemical
field involves many problems and
heavy responsibilities.
May I say in bringing this dis¬
cussion to a close that agriculture

but

260,000

you

when

for

chemicals

pur¬

many

it will accept and use them
cost is reasonable, if such
use is economically profitable and
■if the hazards involved in their
•Use are not too great.
We now
poses,

if the

have chemicals for many purposes

that

displace

to

!

difficult

extremely

be

will

it

and

be

not

will

to enter the large fields
where they are being used.
On
the other hand, there are many
easy r

which

for

problems

do not

we

Chemicals

will

best advantage

well

gressive,

be

utilized

to

by the larger, pro¬

farmers

informed

-and -I-r am -sure

that

the

use

of

of the chemicals currently
will expand and that
worthwhile new products will be
many

available

which all

developed

substantial

adds

up

to

,

the
it

Chemical

supplies

Industry

some

raw

products and is an excellent market for chemicals.
7

.

Industry

to

source

because

cultural

campaign,

advertising

newspaper

As

and

in

industrial

Brooklyn

uses

R. H., Economics
of DeAgricultural Chemicals. Agri¬
Chemicals, September, 1952.

of

the

result

interruptible

rate,

the




of

a

American Molasses Company.

plant of the New York City Transit

with the Kent Avenue power

Authority, will have
a

maximum daily use of about 22.5 million cf.

a

result of the changeover to natural gas,

employees

been able to reduce the number of
pay,

effecting

11%

an

well

The
cated to

company

received

New England,

allo¬

additional gas, originally

some

last winter.

To provide for future growth

agreements for both storage service and firm service were reached
late in 1953 with Transcontinental.
use

the storage facilities of Texas Eastern Transmission, to

This will

it will be connected.
year

the

The latter company expects to

later Brooklyn Union

FPC

approves)

i

through

mean

may
an

which

additional gas next fall, and

obtain

agreement

(if

further increase

a

with

Tennessee

Gas

Transmission, which is planning to bring gas to the New York area.
The attached table shows the common stock record during

past decade.

the

The stock is currently selling around 30 to yield 5%.
(lominon

Revenues

Earned

(Millions)

Year

Stock

Record

Dividends

Approx. Range

$47

$2.12

$1.50

271/2-221/2

46

1.79

1.50

271/2-241/2

1951

44

2.22

1.50

251/2-191/2

1950

42

1.80

1.13

221/2-16

1949

40

2.16

0.65

rH O*

1948

38

0.61'

nil

H— 1—<

1953
_

1

05

1

OO

R. H. Scarlett Forms
Own Inv.
(Special

is

are

larger

as

a

friend

dealer

developing an
in

market

issues

such

The

over-the-counier.

other day
mine showed

of

customer

listed

Herbert

the

Scarlett, member

of

Stock

Toronto

has

Exchange,

H. Scarlett
24

King

&

Street,

brokers

in

formed

with

was

at

to

West,

as

act

securities.

formerly

been

part¬

a

McFetrick-Scarlett
has

R.

offices

Canadian

Mr. Scarlett
in

Co.

'

Chronicle)

R.

—

Co.

&

dissolved.

Derele Swails Joins
Staff of
(Special

to

The

Camp & Co.

Financial

.PORTLAND,

Chronicle)

Oreg.

—

Derele

With Bache & Co.
(Special to

The

Financial

Chronicle)

KANSAS CITY, Mo.—David G.
Shade has been added to the staff
of

Bache

&

Co.,

1000

Baltimore

Avenue.

through

houses

..

..

•

•

••

;

-

•

,

I

•

Telephone.

1

the

commission

$150

wise

would

have

that other-i
to the

firm

that

executed

the

order.

isn't

have

would

Now

houses

start

un¬

in

trading

Telephone and begin to make the
regular N. Y. S. E. commissions
themselves rather than passing it
on
gratis to the exchange firms,
it could in the aggregate mean
quite

loss

a

it be better for the

Wouldn't
-;

non-members

in

share

to

com¬

missions?

Market Leaders to Open

Using

The

Financial

HILLS,

Miles

and
Lawrence P. Swayne
joined the staff of Real
Prpperty Investments, Inc., 233
South Beverly Drive.

Akin-Lambert Adds
(Special

LOS

to

The

Financial

a

Warnock

has

been

staff

of

First

California

fering

a

strong psychological

of

has

as

A. T. & T. I

dealer in

a

Boston who

been

keeping his sales force
following up double
cards that suggest the pur¬

active

just

return

chase of

dealer

the-counter.
firms
with

orders

is

now

Chronicle)

Calif.

Sol

—

with

connected

With Inv. Diversified
(Special to

The Financial Chronicle)

LOS

Inc., 3761 Wilshire Boulevard. He
was
formerly with Milton C.

the

do

thing

same

prominent stock like A.

a

&

T.

greatly

is

accounts

that

when

reduced

salesman

Powell Co.

or

a

new

the

expenses

of the sales¬
part of the ad¬

dO.15

0.60

141/2- 8

vertising ^overhead

1.10

0.80

191/2-12

the

1945

27

1.40

0.58

18

-IO1/2

mission

1944

26

1.37

0.25

11

-

by

(Special

firm calls

a

man's carfare and

Rejoins Revel Miller

new

a

LOS
E.

C.

orders in the unlisted market.

But

stock

exchange

could

put

a

rejoined

Revel

Gorey & Co.

B, C. Morton Adds
-

the

has

Co.,

geles Stock Exchange. Mr. Lawson has recently been with Walter

charging

executing

&

650 South Spring
Street, members of the Los An¬

.

and

The Financial Chronicle)

to

,ANGELES, Cal.—William

Lawson

Miller

regular stock exchange com¬
rate

<:

■

are

potential investor for the
•first time fand
suggests such a
purchase.
On
odd-lot
orders
(which most of these first time
clients will give a salesman)
it
is possible at present at least to

the

Financial

California Investors, 3924 Wilshire
Boulevard.

opened and the sales resistance is

upon

The

a take in the commis¬
main advantage in of¬

The

fering

to

lot of listed stocks if they

given

sion.

Company.

ANGELES,

Leavitt

over-

non-member

More

the

ANGELES, Calif.—Donald
D. McCombs has joined the staff
of Investors Diversified Services,

would
a

were

T.

his

LOS

This

Telephone common.

executes

to

With Calif. Investors
(Special

advertising and of¬

stock such

added

Akin-Lambert

Co., Inc.,
639 South Spring Street, members
of the Los
Angeles Stock Ex¬
change.
He was formerly with

advantage in the favor of dealers,
for instance, in

Chronicle)

ANGELES, Calif.—Roy E.

Accounts

There is

Chronicle)

Calif. —Ira

have

ex-

change to, combat this trend by,
one
way
or another,
permitting

to

BEVERLY

firms.

exchange

to

(Special

$150

fortune, but if enough

a

listed

With Real Property Inv.

gone

member

31

i-

Can.

one of the un¬
Edwin D. Levinson
/•
;•; ••
a
in .300
;
shares of
Edwin D. Levinson, member of
The order was exe-% ;
the New York Stock
Exchange,
cuted right on the button, strictly
passed away at the age of 78 after
in line with prevailing exchange
a
brief illness.
quotations and his firm earned
a

29

d—Deficit.

Company

Financial

execution that he made for

an

1947

7%

The

TORONTO,

another

growing

1946

1

to

& Co.

•pay
tv5

of

Steel, Montgomery Ward, In¬

know

improve.

"Thank you's' are nice but
you
can't pay the grocer with them.

Camp & Co., U. S. National Bank
Building.
Mr. Swails was for¬
merly with J. R. Williston, Bruce

This was a

improved earnings.' Sales per employee

issues if

are

Swails has become associated with

overtime

as

1950 to $6.38 in 1953 and should continue

increased from $4.03 in
to

has

company

reduction in payroll in 1953.

in the

substantial factor

as

the

is

push listed

going to get is a
"thank-you" from member firms.

participate

such stocks

excellent

large-volume

These customers, together

to

there

unlisted houses

signed with three new inter¬

ruptible customers, American Sugar Refining, A. Schrapler's Son,

refusal

Steel, Telephone, Chrysler,
M., Standard Oil of N. J., du
Pont, and other blue chip mar¬
ket leaders.
If you will check a
bit you will notice that several

restaurant to

new

firm to

they

G.

the tankless water-heating

establishment

contracts were

all

land

space.

of

in

issues if

Bethle¬

hem

water-heating and air-conditioning equipment into

gas

extremely limited

dealers

listed

constantly—I refer to the unlisted

installations represented com¬
and other commercial and

system which enables a modern "diner" or small

all

opportunity

the

firms

that

market in

me

Union has pioneered with

behind

of

give non-members a
They can hardly expect

exchanges to allow

commissions

market

for water-heating and

gas

the

of

through

non-member

establishments:

industrial

result

a

the New York

independent

an

lots

which

Market

Off-the-Exchange

afforded

househeating

Wellman,

veloping

The

the position of gas in competition with other

new

any

ner

hot take advantage of the increase with re¬

About one-fifth of the heating

being a Re¬
Agriculture to supply
the many products needed to pro¬
duce
plants
and
animals i and
Agriculture is an excellent Re¬

of

situation

to

source

month.

dealer financing plan, etc.

1952

Chemical

,

8,600

whole

This pro¬

benefit.

in commissions looks better every

units were installed, nearly
these units accounting for
about three-quarters of the new load.
Profits on appliance sales
were a major factor in a 36%
reduction in net promotional costs.
The sales efforts included a 50% expansion in the field sales force,
Some

As

business generated

more

would

posal is working out advantage¬
ously for some of the regional ex¬
changes.
The business of these
outside exchanges (not located in
New York) is growing. More busi¬
ness is developing and the future
of these exchanges that are allow¬
ing non-members to participate

double the number in any previous year,

and the

all

and

promote additional
improve the com¬
mercial load. Sales of appliances in 1953 amounted to $6.5 million,
the second highest merchandising year in the company's history.
Including sales by other vendors, the new appliances are expected
to produce increased revenue of $2.8 million.

As

a

them

to

paid

would be

The company worked hard in 1953 to
conversions to gas househeating, as well as to

an

as¬

and

instead of the
where nonmembers
cannot
participate
in
commissions charged, that there

fuels.

the

thedesirable

be

only $1.45, or less than the $1.50
an increase in the cost of
Transcontinental Gas Pipe Line. However, on

order to improve

pack its

become

exchange,

present arrangement

to

spect to rates for househeating—in fact, these rates were reduced

mercial

could

the

non-

portion of the commissions would

imposed by
July 10 "a purchased gas adjustment clause" was incorporated in
the rate schedule by permission of the PSC, permitting an imme¬
diate rate increase to recover the higher cost of gas.

a

firms
of

whereby

The latter earnings reflected

The company did

supercharger

break.

member

the 1952 charge.

gas

in

the

they would

plan

a

sociates

months ended June, which were

dividend.

un-

of

establish

Despite this extra burden on expenses the company earned
$2.12 per share of common stock in 1953 compared with $1.79 in
1952.
This was a substantial gain over the earnings for the 12

a

have satisfactory answers.
.

over

the

houses

opinion that if the NYSE would

.

*

needs

listed

Flexibility of gas makes it a prime fuel for large industrial
heat-treating processes such as annealing. In the commercial field,

necessary

penditures

'

straight natural gas in August,
1952, abandoning its coke oven plant. The water-gas manufactur¬
ing equipment was converted to the production of 1,000 btu oil-gas,
which can be used for standby and peak-shaving purposes. The
conversion of customers appliances—probably the largest such
program undertaken by any gas utility—cost some $21 million.
This amount, together with the $4.6 million net cost of abandoning
the coke-oven plant, is being amortized over a ten-year period.
In 1953 amortization amounted to $2,520,000, an increase of $1,converted

company

to give care¬
to capital ex¬

very

consideration

ful

The

years some of
have been

For many

(

population of 3,138,000. Residential sales
contributed 71% of 1953 revenues, which amounted to about $47
million; commercial sales provided 19%, industrial (firm) sales,
9%, and interruptible business, 1%. Revenues showed a gain of
about 3% over 1952 although sales in mcf. were nearly 6% higher.
Tne company was handicapped in the 1953 heating season by the
Ret that the temperature was the warmest for any year since 1871.
a

product and this
short which

specificity

from it. Another fac¬
what might be called the

away

is

tor

natural gas to some 853,000 cus¬

serves

processing enjoyed
increasing acceptance through the year. In this field the intro¬
duction of an eight-month off-peak rate is expected to attract a
comparatively new and substantial market, that of large volume
water-heating in apartment houses, and spring and fall heating in
large buildings.

toward

more

Unlisted Market in Listed Issues Broadens

covering most of Brooklyn and a large part of

area

an

Queens County, with

of

a

•trend

Brooklyn Union Gas
tomers in

it

is unnecessary for me to elaborate
on these figures except to add that
a

By JOHN BUTTON

Brooklyn Union Gas Company

must
I

do not have accurate information
on

By OWEN ELY

less.

or

Securities Salesman's Corner

a

considered

ppm

39

the

and

crops

(1699)

(Special

Bar ill
C.

to

The Financial Chronicle)

DETROIT,
has

Morton

Building.

&

—
Lucille R.
the staff of B.

Mich.

joined

Co.,

Penobscot

^*0

The Commercial and Financial Chronicle

(1700)

,

Continued

situation,

from page 4

of

area

turn

we

the

to

other

government

anti-depres¬
activity. Using the medical
analogy further, I shall discuss

sion

Sole o! Federal Government

the

government's

ventative

In
of

State

Michigan

of

this

His Committee

the

among

publicans

a very substantial
in the date of publication.

Com¬

Likewise,

colleagues

House of

on

were

Representa¬

two agencies—the Coun¬
cil of Economic Advisers and the

We

Congressional Joint Economic
Committee—are constantly alert

within

have

now

about 30

month.

a

not

were

days.
credit

consumer

established

Even such
total

four

or

on

until

basic statistic

1942.
as

the

supply, of which

money

have indications weekly and
substantially complete data
within the month, was, in
1929,
now

Collection

Dissemination

and

of

Statistics

Another way in which the gov¬
ernment takes

perhaps
xole

the

in

nomic

statistics.

dissemination of

tSiat today's

i*

We, all

be

r
.

policy

active

before
the

eco-

V ^rrograms in the lightof
trends.

The

consequence

'A'

*

The Joint

Fublishes

Economic

booklet

a

entitled:

'A >~"*V

-

Committee

each

"Economic

month

production,

on

miasing power,
.Federal
the

prices, purcredit and

money,

finance.

If

sub-series,

consider

we

this

publication
presents up-to-the-minute knowl¬
edge on considerably more than
t-00

economic

series.

The/ sub¬

scription price, payable to the Su¬
perintendent
of
Documents, • is

42.00.
Many of these series
collected

based

are

by-products
of performing governmental func¬
tions.
tax

The

as

corporate

returns

reports and
which account¬

upon

ants

frequently work become, in
generalized aggregates, a major
of

source

much

materials

of

economic
It

is

-cmt

of

all

take for

v/e now

able within

Jew

in

series

granted,

which

avail¬

as

similar

any

the

the

—while

in

the

sense

or

period

Stock

has

decades

business

been

few months.

tive

policy

public
/possible as

—

contraction

only

progress

Important

steps

and

—

have

correc¬

both private
already been

result of these

a

nomic data.
^sit

in

ago.

We

have

eco¬

had

not

to

aaent

is

It

with

and

dation

with

unemploy-

cumulative

inventories

of

and

liqui¬
credit.

important to realize what
wef have made in this

in the last

they

now

prices

average

and

were

the
of

one

few

currently
and
readily
available indexes of economic ac¬
tivity in 1929. Small wonder the

the

cumulative

Today

in

cumulative

pessimism after October,

Recently-developed

Vandenberg

is

ciated

the

and

consumer

the coming year

contributions
and

plans for

monumental

are

to

of

policy

making
economic
stability and
I can only take time to

to

growth.

-

mention

the Commerce-SEC sur¬
of business investment plans,

Federal

survey of
We
must

intentions.

consumer

also

Reserve-Michi¬

Center

note

the

tremendous strides
Government budgeting—Fed¬

in

eral,

State

and

local —and

value to all

policy-makers of the
resulting information on Govern¬
ment

fiscal

plans

for

the

period

ahead.

series

Indi¬

cators" which, as I have said, we
liow take for granted as accurate
-and currently available.
In

1929,

just

depression,

before

neither

the

the

Great

Federal

^Government authorities

nor

busi¬

had

to

them

nessmen

the

series

present

raicome

net.

and

We

ally

use

available

gross

now

have

estimates

larly by quarter
The
upon
our

;

we

and

prod-

continu¬

issued

regu¬

years.

consumers

which

national

on

national

price

index,

rely for much of

understanding

of

what

is

We

must

reductions

ets,

the

the

hope that in making
Government budg¬

in

and

scope

statistical

minished

or

of

accuracy

seiies

not

are

impaired.

significant
I

gaps

There

di¬

grams, and the like—for the

than at any

omy

are

sta¬

won't go so far

as

time
to

econ¬

before.

that

say

I

we

have

anything comparable to the
"rabbit test," enabling economists
to
predict
accurately economic

turning-points, but
time

remedial

vate

and

ability to
pri¬
minimizing

our

actions—both

public—for

economic contraction is far better
it was when we were de¬

than

pendent exclusively on the "crys¬
tal ball," or looking at the
pa¬
tient's

tongue.

98%

banks.

sured

banks

asso¬

introduction

of

of all

Assets

deposits in

in

these

in¬

currently

$211

again

are

the

staggering loss of this pur¬
chasing power and the cumulative
liquidation of debt which drove
the economy to such

depths in the

early 1930's.
The system of unemployment
compensation, in which the State
apd" Federal Government join, is
recognized as desirable not only
the basis of individual welfare

on

fairness

displaced
deliberately cal¬

is

culated to benefit the economy as
a whole by avoiding in some meas¬
the

ure

loss of purchasing

power

which results from unemployment.
The farm support program,

similarly,

is

beneficial
vidual

a

not

built-in stabilizer,
only to the indi¬

farmer

the

to

but

whole

Sales of farm machin¬
ery, automobiles, tractors, and al¬
most all of the products manufac¬
economy.

tured

in

cities

the

serious declines

suffer

from

the income of

in

farm population.

our

The

relatively heavy reliance
progressive income taxes for

automatic

peted only twice

all

:

Government

Programs*11/

Passing beyond the role of the
of

us

Government

diagnose

in

the

in

the tax
business conditions and

personal incomes vary.

When an
individual's income falls, his taxes
fall

proportionately more. Carry
back and carry forward of loss
provisions are stabilizing influ¬
ences not only for the individual
business
a

for

but

the

economy

as

whole.

securities

The

registration

act

and the regulatioh of stock ex¬
change practices are both parts of
a program of preventative
medi¬
cine

making

the

to

less

us

economic

years.
So
much

ills

for

susceptible
of previous

the1

preventive

measures, although others might
be cited. We come to the question
what

the

Government

can

do

helping

economic

vorable

are

stabilizers

stem the downward

treatment

alone

ailing
a

which

the

Fed¬

prescribe

as we

guaranteed

have indi¬
cure.

Our

best protection against depression
will always be to have diagnosed
and

stopped

the

disease

in

its

early

stages,
to
have
acted
promptly
during
the
selective
phase of a decline, avoiding so far
as possible a
general decline. But
even more important are the
posi¬
tive steps constantly to
improve
basic Government programs, thus

providing

a

economic

stability and growth.

favorable climate for

In

dealing with a contraction,
minor or major, the Federal Gov¬
i

ernment
areas

has

Business in¬

vestment may be encouraged sim¬

ilarly during periods of economic
contraction. I recognize that this
may

to

counter

run

traditional views

objectives

of

of the

some

to the private

as

depreciation

ac¬

counting.

However, in times of
deflation, given the alternatives of

to

investment

on

most

Also, the
programs
of secondary markets
and mortgage guarantees are im¬
portant stimuli to housing con¬
struction.
Another

tivity

three

recognized

for action: monetary,
public

works, and fiscal.

for

area

Federal

ac¬

in

helping to curtail eco¬
nomic depression is public works.
A

the

hand, and the

one

I

on

of tax

use

encourage
private
the other, I believe

people will prefer the latter.

think

we

all agree with

may

the statement in

President Eisen¬

hower's recent Economic Message,
and reiterated by him last night
on

-television, that the arsenal of
the

weapons

at

ernment

for

disposal of gov¬
dealing with eco¬
nomic contraction is very formid¬

growing population and a ris¬
ing level of living bring untold
requirements for new public fa¬

able.

cilities—highways, schools, hospi¬

list of specific

tals and other municipal

most

involving
These

services
expenditures.

capital
for

needs

the

rest

of

the

One

might present

provocative

a

important,

recognize that

such

no

possibly be complete

list

all of the devices which

acceptable

The Joint

Economic Committee

recently recommended the ap¬
pointment of a public works ad¬
ministrator, directly responsible
to
the
President, to coordinate
public works activities in the in¬
terests

of

At the

economic

same

warned that

lic

time the Committee

we

in

works

stability.

should keep pub¬

perspective

proper

lest they be overrated as a ready
tool alone capable of solving the

problem of unemployment. While
Federal public works
may be needed, the greatest needs
are for public facilities tradition¬
substantial

ally provided

by State and local
governments. Unfortunately,
there

are

limits and time-consum¬

might discover in the face of need.
It is well to remember
that, as in

medicine,
and
are

an

public approval

of

projects

Since there

these limitations, it is wise to

are

be prepared in advance with
a
"public works reservoir" of en¬

gineering and financial blueprints
for specific projects.
It

also

must

be

credit

assistance

grants-in-aid

or

or

—

both—

would be needed if State and

lo¬

cal government public works are,
to make a major contribution in

combating
This

severe

a

Federal

depression.

assistance

would

justified because, as Clar¬
Elliott, the distinguished City
Manager of Kalamazoo, told our

seem
ence

a

a

national
must

ated

on

a

month ago:

"Depres¬
national phenomenon,

a

causes
or

be

and

effects

international
attacked

national

or

on

scale

allevi¬

scope."

Flexible tax and fiscal
the

third

the

Federal Government

policy is

major tool available to
in deal¬

ing with economic setbacks.
have

We

pointed out earlier that the

built-in

stabilizers,
with
their
automatic budget impact, are sig¬
nificant tools for combating re¬
cession without special legislative
action

the

time

come

Government each
into use. Legis¬
lative changes from time to time,
however, can make the tax pro¬
gram more effective as a counter¬
cyclical instrument.
by
they

everchanging matter. Our

humans do. Similarly the "wonder

drug"

cures

A policy of balancing or
at¬
tempting to balance the Federal
budget
annually despite major
fluctuations
in
production
and
employment is neither sound nor
feasible policv today. Timely ex¬
penditures
for justifiable pur¬
poses, even though in excess of

lose their potency. No

two depressions are
exactly alike,
and the measures taken to combat
them do not have the
each

effect

same

time

they are applied. We
must
constantly strive for new
tools of diagnosis and treatment.
More important than a
catalog of
specific measures is the fact that
we

willing

are

and

determined,
said, last night,
use
appropriate and newly con¬
ceived measures when, as, and if
the

as

President

to

the need arises.
The

Current

No discussion

Federal

Recession

of the role of the

Government

in

aiding to

prevent depression would
time

be

further

at

complete without
words

the

on

this

a

few

current

re¬

cession. President Eisenhower has
recommended

the

to

Congress a
meet
the
requirements
for
a

positive

to

program

long-run

recognized that

Federal financial

prevention

economy apparently develops im¬
munity to certain diseases just as

local and State governments may
incur debt and secure the neces¬
sary

diagnosis,

of economic fluctuations

cure

ing obstacles to the rate at which

however meritorious.

which

or

to

could

anticipate
might be
ingenuity

or

probably

of

total over $100
Programs for
meeting these requirements can
be accelerated in times of rising
unemployment.

seems

however,

billion

dollars.

It

measures.

decade

and

economy under such

circumstances is,

cated, not

can't

tide.

Government- may

an

encourage

uncertain.

is

their

for

may be used to promote economic
stabilization and growth. For ex¬

situation

with

The

There are, of course, a variety
of ways in which the tax structure

is clear but where the immediate

are

eral

Structure

direct Government investment

sions

already unhealthy
worsening, and that the

built-in

Tax

incentives

conditions
are

the

ginal investment programs, espe¬
cially. where the long-run demand

Committee

and

will

terms

in the fact of depression—that is,
in the face of a diagnosis that

Three Recognized Areas of Action

Itevt**

Developing

flexibility

as

But

necessary and

'the

to

but

worker,

en¬

investment.

the country

We will not witness

billion.

r

j

''r

Federal




our

we

jgoing on in the economy and
•which, here in the City of Detroit,
Sfi used as a "trigger figure" in
wage contracts, was, in 1929, com¬
and then

in

all will agree that
have better clinical tests
—temperature readings, ' cardio¬

today

.

a year

about

these

of

think

the

intimately

of the banks in

the

But

of

"Economic

Senator

late

important stabilizer. Today
Federal deposit insurance protec¬
tion is extended to approximately

knowledge yet to be filled.

several

with

burden

1929.

surveys

tistical

in

the

;

period of contraction.J

a

Readjusting

businessmen to proceed with mar¬

upon

and

xespect in the past generation. Let
consider

of

name

itself

of

the desired expansion of

men¬

is, for example, the Fed¬
Insurance of bank deposits.

The

during

a

recovery

of defense facilities.

will

terms

need

There
eral

make

can

better
courage

I

and

revenues,

ity at lowered interest rates and

duced interest rates and more fa¬

a

current

positive contribution to

ample, we have seen accelerated
depreciation employed temporar¬
ily to encourage the construction

a

that its availabil¬

assurance

no

con¬

have

sta¬

few.

a

during

freely
decline, there
more

built-

in

are now

built-in

we

number

only

made

these

These

the

stabilizers,

tion

by the
1930's.
While

of

to

as

blow

monetary measures are a
useful part of Gov¬
ernment policies even though they
might not do the whole job. Re¬

activity.

referred

siderable

retard

or

deterioration

Federal finance likewise provides

1920's

still

contained

prevent

economic

thinking in the late
thereby added to the

progress

us

to

stock market dominated economic

innocently by, eventually to be

•-overwhelmed

by either the
private 'agencies
before 1929—have

market

Dow-Jones
the

action

and

six months.

Research

which

that

information promptly in¬
stead of after a lapse of three to

the

-a

This

us

and

moderate

moves

fact

all,

give

gan

are

the

to

been greatly improved
25
years.
Above

cussing, on the basis of economic
-.facts, what ought to be done about

"we

At

gathered

government

vey

two

Census

statistics.

us

Here
today, for example, dis¬

-available

Depression.

precise situation

Sales, inventory, industrial pro¬
duction, and construction figures

business

that

note

matter of days, very

a

were

to

these

available

last week.

even

into

and

figures relate to the'situation
stood, not months or years
ago, but as it stood last month

and

available

the

of
be

can

is

severe

a

experience

Experience in the Great De¬
pression taught us the desirability
of developing
government pro¬
grams
which
automatically
go

all

for

it

as

of

situation is founded.

interesting

of

which
the

upon

knowledge

our

of

depres¬

sion has set in.

95%

the
'

'T-/'1"-

data

the

blind

to

credit

of

all

Indicators."

11 consists of 32 pages of the latest
c'ata

Great

improve

not

the part of all

on

-concerned.1';

not

unem¬

effort constantly to improve the
quality of our information ought

extremes and unwise, un¬

timely actions
•

the

Bureau

to

of

t'lis study is the avoidance of un¬

healthy

labor

were

purposes

moment

the

jpieced together from current data
-on

the

respecting unemployment is un¬
fortunately somewhat clouded as

shape their
knowledge

and

in

closely,

practical

well

as

of

watch

us

makers,

-

students

fj-omic statistics,

eco¬

know

businessmen,

Government
juiust

three

a

force, employment,/ and
ployment statistics, which

economic conditions is in the col¬
and

after

dealt

ment of the economy once

this

lag.
Developments

a

lection

until

months'

fully-appreciated,
field of
diagnosing

not

available

not

active, although

an

directed

was

we

a

medicine

pre-

against economic contraction, and
the government's role in treat¬

bilizers.

a

three

Statistics

growth.

sales

store

department store
weekly series available

sales

to
developments which have a
bearing upon economic stability

total

on

not available until

department

days after the close of

These

lag

exist and fig¬

not

ures

tives.

and

information

retail sales did

outstanding Re¬
Democrats of the

and

Senate and

only with

is the distin¬

Chairman

guished
mittee.
are

Major Economic Depressions

in

role

Although an important instru¬
for stemming minor fluctu¬
ations, the hope that monetary
measures alone might prove ade¬
quate for generating economic re¬
covery during a major depression

ment

Thursday, April 15, 1954

..,

growing and expanding
The

President's

signed

is

de¬

part to strengthen
stabilizers to which

built-in
have

economy.

program

in

referred.

The

the
we

President

recommends, for example, broad¬
ened coverage under the
old-age
and

under

surance

cludes

the unemployment in¬
systems. His program in¬
a
variety of proposals to

bolster
and

construction

public

works

of

housing
high-

such

as

•

hospitals,
and
the
St.
Seaway. The pending

ways,

Lawrence

tax revision

bill, while seeking'to
inequities as they
apply
to
individual
taxpayers,
gives
primary
attention
to
in¬
creasing the incentives for private
eliminate

the

business investment with

its jobcreating possibilities. The $5 bil¬
lion

automatic

tax

reduction

of

Jan. 1 and the $1 billion excise cut

effective

April

1

wholesome and
on

are

having

a

stimulating effect

the economy.

All

in all, I think

confidence

from

recognizing,

we

the

may

take

program

the President him¬
self has indicated
repeatedly, that
as

the program will be
stepped up to
include special
measures
if the

economic

situation- worsens,

We

take., confidence, too, in the
knowledge that the Congress }is

can

alert to the need for flexible

prompt

action

if

the

and

economic

situation fails to right itself under
the stimulus of the
present pro¬

posals.

Witness

!
-

Congressional in-

1

*

Volume 179

Number 5316

The Commercial and Financial
Chronicle

...

(1701)
«Ltiative

reducing excises last
week, and its current considera¬

the

tion of

months

certainly

ijuate,"

according

to

measures

for middle and

reduce taxes.,

low-income fami¬

lies further to stimulate

"

"To

such
simplicity of function (as that of theGladestone-Goschen years) no modern Chancellor
can
hope to return. His ways are set for him. Much

consumer

-demand.
In conclusion, I want to
empha¬
size that the problem

facing

nation

the

Congress for

the

and

next year or

the

two

making the transition from

a

long-term growth trend from

which

For

the

sustained

a

growth

the

what fiscal and economic
precedents say
be. Some of the
imposts he would fain

economic

take place.

can

longer

Committee

studies

run,

staff

and

ahead may be summarized
the

additional

to

provide
capita living
15

million

goods

and

even

present

standards

which

(1)

as:

being

services
about

held

production

technological

possible;

and

new

facilities

structed

which

products;

if

the

we

must

to

are

present

be

of

American

average

for himself
standard

a

to

on

set

living

and

to

of

the

retailer, who,

what

purchase

most

on

municipal.

between

a

what

tax

foolish

and

permits

and

from

what

hard to achieve it.

And

Mr.

so

associates

(April

Co.

first

accrued

3.00%.

and

interest,

Award

of

to

the

is the

the

not

by the group at
yesterday
on

sale

bid

of

102.231%.

an

Of

from

concur¬

April 8 by the Bond Department

of 50.000 shares

of pre¬

total

net proceeds

sale

ferred

stock,

50,000

additional

and

stock to

mon

the

issuance

shares

of

of

com¬

its

of

Bankers

Trust

Company

of
New York, though the investment
market is
term

more

of

in

the

debt

cost

of

to

for the
additions and

extensions,

improvementsv to

pay

the

company's

soon.

Furthermore,

the

study states,
an abundant
supply of short-term
government
obligations
appears
essential to the proper
functioning
of the money
market,

according

the

to

Bank.

The

fact

that

our

properties.

economy continues to need

a

large

The bonds will be
subject to re¬
demption at regular redemption

volume

a

volume

might well lead to artificially lowyields."
Goal

Refunding

for

Program

The

tions

ranging from
par,
and at special
prices receding from
par,

105

-to

redemption
102^%

to

plus accrued interest in eat^h

case.

The Ohio Power Co. is
engaged
in the generation,
purchase, trans¬
mission and distribution of elec¬

tric

and

energy

its

sale

to

the

public in extensive territory in
Ohio, and in the supplying of elec¬
tric

energy at wholesale to other
electric
utility
companies
and

municipalities.
serves

with

The

company

538 communities in

an

estimated

an

of

liquid

assets is

sideration that makes advisable

a

temperate approach to the refund¬
ing program.

Forcing the market with longterm offerings would involve the
risk of competing for funds that
otherwise might venture into
home
building,
construction
or
business

new

pointed
and
ent

out.

equipment,
Since

total

it
is
private

municipal investment at
is

still

pres¬

running

high, the
Treasury's long-term borrowing
and funding operations are
likely
to

remain

ahead.

modest
,

for

some
;

.

time

population

of

Large

Requirements
Term

for

Short-

Debt

1953, the company
Among the
requirements
for
operating revenues of short-term government securities,
and

net

income

of

the

Bank

includes

those

of

com¬

$13,801,699. In the previous year,
total operating revenues amounted
to $70,493,211, and net
income

secondary re¬
serves
and
for
adjustment
of
money positions, and of nonfinan-

$12,187,286.

cial

was

mercial

banks

(Special

to

The

DENVER,
Miller is

now

In

Shelley Co.
.G.

corporations

for

reserves

addition, the

Federal

Reserve




side

be

of

realized

or

com¬

the Bank. "Such
involves
little
or

operation

an
no

flow of funds into private invest¬
ments channels."

The

the

review

conclusion

1954

points
of

holders

out

that

February,
operation,
in

of $11.2

billion

near-term maturities chose to

change

them

at

the

refinancing

which

for

of

ex¬

medium-term

bonds, the average maturity of the
marketable

debt

about

was

one

month

longer than at the end of
1952, prior to the start of the re¬

funding
thus

"The

program.

had

not

only

of

passage

Treasury

succeeded

had

also

tension

13 %

achieved

in

months,

but

modest

ex¬

a

of average

maturity."
Treasury's
refunding
in
offsetting
the shortening of the debt caused
by the passage of time, additional
the

efforts

to

succeed

decrease the

amount

of

short-term issues need not be ag¬

gressive,"

the

Bank

concludes.

Debt Management Policy

The

review

Stressed
credit

policy in 1953 and concludes that
"by permitting credit to tighte;n
in

the

boom

people

with any degree of

precision," the

in

some

and

extent to the wide

interest

tions

in

some

economic

as

the

rates

in

course

swings

both
of

the

direc¬
year.

However, the policies pursued by

Hotel

major factor in the

a

market

be the Treas¬

may

ury's operations in

managing the*-

debt," according to the Bank.

mainly concentrated in thesecuring of import licenses for tbe
bringing in of necessary goods.
But, as Mr. Basler puts it, "ary
foreign
capital
anywhere must,
adapt itself." v

1

Guaranty Privileges

ability of the U. S. Government's?:
guaranty might provide the solution
to
the
self-interested
in¬
vestor's

.

quandary. Ever since 1948

the U. S.

Government has had in

operation

a

under which

program

bilateral

agreement

,

tbe

currency earnings'
dollars, and the risk of loss

into

from expropriation
tion.
But

nationaliza¬

or

there has been

a

shunning:

of this
privilege on the part ef
American exporters and investors

and

in

these

practically
privilege.

countries

nothing
*

Iii

up

Tur¬

with

United States. Guarantees
may be
issued against the risk of
inability
to convert local

man¬

the

:fs

hears

one

about

tbe-

*

absence

of

guarantees*

and weighing the various conflict¬

ing facfor",

Deal

wp'I

as

self-interest,

in the construction

this

of

the

in

the

the

a>

"omo^tingr
light of Ms

investor

s

nardf-

return;

project here with
Mr. Rudy Basler, a
world-wide experi¬
ence,
reveals a generally satis¬
factory experience.
The

deal,

typical

a

abroad,
for

the

of

a

the

Social Se-.

our

government guar¬

eventual

return

under

the

"lease",

on

amount

in

a

20-'

(It is not really

rather

As

profit-sharing
of

rent

not

Puerto

Rico,

the

government
agency
thirds of the profit,

gets
and

two-

Hilton

one-third, with foreign exchange
withdrawals
i
specifically
guar¬
anteed.

The Hilton company has a com¬

pletely free hand in
policy and the setting
It

bring
abroad,

in

can

from

own

dollars.

engineers
wise
in

can

the

and

key
pay

contractor

are

take

operating
of prices.
personnel
them in
including

currency,

The

and

his

German, who like¬
out

their

hard-currency

proceeds

German

marks.

Mr.

Basler, feels that his in¬
experience with the Turks

on

the

whole

been

satisfactory. The main
ointment

tape,

with

has-

must

depends

a

of

and

su^cessf®!)

American

investment
the willingness of in-

en

vestors to

primarily be real-

sizable

adant

their operations*!
Germans, to the re¬

country and its business structure.

year arrangement.

with

it

that

influx

the

end

but

least

election*

quirements

acquired
by condemnation. Hilton puts up
the working capital for
operation,
including supplies at the begin¬
ning, which it gets back at the

lease

(at

general

the

was

the

hurry

a

comprised
purchase of

the capital. The land

of

in
next

op¬

(akin to

curity), with

the

Hilton

property and construction being
put up by the government's Pen¬
sion Fund

antee

ized

with

money

a

But

manager,

eration

and

before

four years off).

American

its

veteran

has

require
varying de¬

natural

Istanbul-Hilton
operation is to be cited. Exploring

vestor

in

the

highly-publicized

to

obligations

many-

In appraising the welfare of
the boiled net conclusion might weJI
foreign investor here, the actual be to go in provided there is
a
experience by the Hilton Hotel possibility of
recouping a big fat

their

examines

bond

opportunities

offsetting the shortening effect of fixed.)

the

enormous

in

with France and

Big

such

affiliated with E. I.
cree. "While the total of all these
Cran- requirements is
not
measurable

Building^

other

must

key through long-term credits.

energetically
easing credit thereafter, the Fed¬
eral Reserve probably contributed

Shelley Company, Ernest &
mer

it

Furthermore,

arrearages

banks prefer short-term
securities,
and
other holders also

FinancIaI Chronicle) '

Colo.-4-Stanley

short-term

for

against taxes and other liabilities.

With E. I.

of

obligations is

by

operations

For the year
had total

$76,733,200

choice

financing risk to the Treasury nor
does it jeopardize economic ac¬
tivity, since it does not reduce the

"If

.

area

1,267,000.

the

mended

con¬

prices

the

on

already occurred, through

outstanding

medium-term

used

consumer

the restriction of imports
ifested in progress in

ing too

will be

arrear¬

to

has

area

the Ohio Power Co. intends to
ap¬
ply $23,000,000 to the prepayment
of bank notes, which were issued

ceeds

general

capital goods (in sharp
the German
picture),

as

convalescence

short-term

receptive to long-

government

reduction

and

ease

and

clearing

short-term

vestments,

exchange

over-importing of

resources.

Treasury's recent practice
of lengthening maturities
by giv¬
ing holders of maturing obliga¬

The balance of the pro¬

her

development of

offerings than
time in 1953, the Treasury
is unlikely to force the market
by pressing for too large an offer¬

in connection with the
construction

se¬

deals;

growing pains, or perhaps indiges¬
tion, in a period of long-delayed

states, "it is evident that

sharp

a

credit

tending to the belief
savings may accumulate morerapidly than the supply of new in¬
that

One might think that the avail¬

However,
picture,

at any

program.

clearing

the official

the

parent company,
American Gas & Electric Co. for a
cash consideration of

$1,000,000,

the

worry over the sacrosanctity of
her remittance obligations to the
investor abroad.

soon.

review

.

causing anxiety in some quarters it offers guarantees against certain
over
Turkey's ability to secure, of the non-business risks. It isu
adequate amounts of raw mate¬ now available for any country
rials, will likewise occasion some which concludes the necessary-

Treasury Financing

offering too

annual review

bonds, the

the

rent

According to the

of "United States Government Se¬
curities and Interest Rates" issued

the sale of the

Now

only be

premium of 50%

a

contrast

is unlikely to force the market by pressing for too
large

ury

was

competitive
a

can

3-way

above

well

as

Humphrey might well lament!

,

won

month.

foreign ex¬
change to Western Europe, from

Bankers Trust Company of New York in
pamphlet, on "United
States Government Securities and Interest
Rates," holds Treas¬

yield

issue

to

Certainly

was

Outlook for Long-Term

mortgage bonds,
1984, at 102.461%

3 Vs % series due
and

Inc.

offering
today
$20,000,000 of Ohio

of
investors

■ ■

tion

difficult

more

that much of the present
economic
illness is merely in the nature of

are

15)

Power

Co.

policy

■

ahead, with the
Reserve following
a_

Federal

Booming Turkey?

ages in remittances of

Offer Ohio Power Bds.
Halsey, Stuart &

general

in the
aggregate.
"In the period

rate.

lor."—"The Statist."

Halsey, Stuart Group

by

entailing
more

never fitted. All these
things
budget framers of the popular press
lightly ignore. Not so the unhappy Chancel¬

may

month

cured

once

was

becoming

exporters' dollars

the amateur

work

the

payments
by foreign exporters,
with ordinary exchange transfer

reimbursement

Gone equally

was

probably

In

enterprises embarked upon by the state, but for

which the state

constantly improving

of

one

is

.

toward tihet

What Investment Prospects

in

legitimate state expenditure, in the financing of
agreed policy, as against the covering of trade losses

is

citizen

and

division

the char¬
determination
of
the

acteristic

be

to

this

that

can make

Continued from page 5

expen¬

diture

public

A force which is
much more
difficult to measure, but of funda¬

importance,

are

continues

basis, is its ultimate collector. Gone, too, is the
rigid division between what should be state

con¬

services.

mental

conditions,

the wholesale level has from the first

rassment to the

maintain

level

itself

though

eco¬

readily available to finance an
upturn in business activity when
the forces of expansion
again as¬
sert
themselves.
Under
present

only is he
tax, but he is

a

mild

activity, Easy credit, of it¬
is not likely to halt this

Not

revenue.

form,

relatively

decline, in

of

contribution

policy

Bank,f„ maintenance of economic
activity

the

self,

pernicious creations of the bureaucratic
mind, since
it confuses for the
taxpayer cost and tax, and can¬
not be
adjusted or removed without severe embar¬

(4) the backlog of highways,
hospitals, and other pub¬

even

existing

on at

shown

schools,
lic

its

clapped

(3) the
bringing

advances,

cost reduction
and

to

passed, but which

continuance of such

a

additional

people be¬
tween now and 1960; (2) the con¬
tinued high levels of investment
in plant and equipment to make
this

since

handy raiser of

pinned to

per

to

has

as a

credit

trend, but the steps taken by the

complication that their abrupt removal is
not possible, even an
impost such as purchase tax,
which was
designed and applied for a purpose

suggest that the economic expan¬

major

ade-v

the

to

credit authorities have
helped as¬
sure
that
bank
credit
will
be

of such

sion can be very large. The
major
sustaining forces which are seen

recent*

they must

remove

by

others

in

appear

the

nomic

down, not by his contemporary departmental
colleagues, but by the commitments of the
past.
Many of the imposts he either devises or
continues,
and their
weight, are dictated not by his own con¬
ception of what such imposts should
be, but by

po¬

authorities

•'considering

laid

is that of

years

credit

character

of the
expenditure for which he has to provide is

sition which may well have been
above the long-term growth trend
of the economy to a position on
the

41

in

generally
fly in the

consisted

bureaucratic

of

red

obstruc¬

as

•

have

the

and

methods

of

tfee-

j

12

The Commercial and Financial Chronicle

(1702)

trying to destroy the independ¬
ents, and unless the independents
rally quickly it will look as if

H MUTUAL INVESTMENT FUND

Mutual Funds

NATIONAL

SECURITIES
show

Business Report

WRITE FOR

The

FREE INFORMATION

y

Axe-Houghton

erately

PROSPECTUS

during

weeks.

Steel

k 1

w e e

y

apply

last

the

and

ous

NATIONAL SECURITIES &

lumber

three

slightly

automobile

120 Broadway, New York 5, New York

The

out¬

has

and

sales

consumers'

of

goods generally

index " of

Axe-Houghton

of

to inventories, at any
shown a rather sub¬
stantial increase, largely because
of inventory liquidation". In March
of course department store sales

higherA'

slightly

are

have

during the last three
weeks, and there has now been a
slight upturn in steep scrap prices.
Lead

zinc

and

metal

although it had been reported that

stocks of corporations selected on the

basis of possible participation in Canada's

growth.

booklet-prospectus contain¬

It

to

ing the facts, send this advertisement to

turn

my investment dealer or

erate curtailment in

in

demand,

The

BULLOCK

a

New York

and hide
wool

Please send

me a

free booklet-prospectus

Canadian Fund.

•n

The
Name.

been

prices

have

reports

demand

for

of

woolen

and worsted cloth for the fall gar¬
There is an unusual

ment trade.

situation
where

in

cotton

the

prices

weaves

have

eously

with

print
of

cloths,

the

advanced
a

a

finer'

in

respondingly favorable effect on
freight ton miles unless, as some¬
times

the

production

higher than

March

schedule

398

originally

be

to

seems

with

now

share

cause

a

rise in cot¬

prices, but the cotton manu¬
facturing industry continues to be
in

a

better

sion

position than synthe¬
of

the

Class

A

pre-

-

ferred dividend

INVESTORS

of

panies
A

mutual

diversified
securities

fund

with

for

capital and income
may

be obtained

from investment dealers

by Robbins Mills,
aggressive com¬
in the postwar promotion
the

most

or

tendencies

Berkeley St., Boston, Mass.

New

facturers

showed

partment

in

Unfilled orders continued to de¬

31,

net
per

of

$14,750,000.

•

Some

™

branches

of

the

for

since

1954 reached the

Dec.

totalled

company

million

31

This

when

$66,290,000.
has

now

and

half

a

net

The

-

40,000

over

than

more

10

outstanding shares.

1932,
when
Common¬
wealth was founded, its manage¬
ment has always advocated broad

in

some

1, or $7.14 per share of outstand¬
ing stock, compared with $33,041,997 and $6.52 per share on Dec.

comments,

industry is

as

respects

as

31, 1953. Total net assets

In March

and

Oldsmobiles

trade

and

low.

Ford

have

General
been

and

per

share

as
are

reflect

31,

1954 of Diversified

Common

Stock

assets

$5,176,797.

of

United

in

BOND, PREFERRED AND

Affiliated

COMMON STOCK FUNDS

FUNDS,

Inc.

v—.

D-89

r

"

Prospectus

Upon tequest

**

^

City

State




Lord, Abbett & Co.
...

New York

—

Chicago

—

Atlanta

—

a

new

high for

Cameron

*

Name

Corporation, special¬

FIRST INVESTORS

plans

of

anniversary
Terrace

sal°s

Suite

Palm

i.i the

conference

Roosevelt

Hotel

the

of

April 9 beginning

Friday,

periodic

for the accumulation
ot
mutual funds, will hold its 24th,.

purchase

on

at 3:00 p.m.

The featured speakers

will be Jack Lacy,
winner of the 1951 Selling
Oscar of the
National
Sales
Executives,
and
Charles

for

consultant

Economic

the

the

will

First

of

Lehman

known

Lacy, who has
salesmen for na¬
discuss up-to-

Mr.

8,000

will

firms,

techniques in the field of
with particular attention

ship.

repre¬

Corporation
outlook for:

economic

and

than

more

the

address

Investors

the

future,

near

tionally
date

of

topic

trained

of

the Committee

to

Development.

Broderick

Mr.

sentatives
on

Economist

Chief

and

Brothers

salesman¬
to proper

Custodian

KEYSTONE

Funds,

Inc. announced that the combined
the

of

assets

10

Funds

Keystone

reached

an

all-time high of $238,-

336,500

at

the

of

close

the

first

quarter of 1954.
Sales of

70.2%

shares in the first,

new

of

quarter

this

increased
of,

year

the

over

same

quarter

1953, and produced the best first
quarter net growth through sales
in

years. Liquidations were*
25.5% compared with the?

seven

down

period in 1953—and repre¬
not only the lowest dollar
volume of first quarter liquida¬
tions in 10 years, but also the low¬
est ratio
of
liquidations to net
assets since 1942 (one of the low¬
est ratios in Keystone's entire his¬
sented

tory).
Total

distributions

vestment income

paid

of
or

in¬

net

declared

operations through the first
of 1954 amount to more
$102,000,000.
In
addition,
Keystone shareholders "have also
received
an
aggregate of more
than $54,000,000 of net realized
gains.
gan

quarter
than

LOOMIS-SAYLES

Mutual

Fund,

Incorporated, now in its 25th an¬
niversary year, announced that as

As

Fund

of

March 31

had

a

year ago

$30,670,895

of

the

assets,

Commonwealth Investment

Company

established 1932

any

0

com¬

of

like

#5

1954

quar¬

history, surpassing the cor¬
responding 1953 period by 16%.

A Common Stock investment Fimd

me
prospectuses describing
Organization *nd the shares of your

Funds.

assets of

net

equal to $4.88,' a share'\
outstanding 873,230 shares, against
$2,896,319, or $4.46 a share on 649,352
were

ter in

Fund

Company

Please send

a

the

reported

the first three months

set

"

ten

$6.48

Fund's

Continental

$4,257,891
on

prising the investment trust group,

your

-y
assets

net

total

to

A BALANCED

that sales of the four funds

"a,

,

share
on the outstanding 2,574,132 shares, against
$14,606,400, or $5.98 a share on the 2,442,484 shares outstanding a year earlier.
equal

INVESTMENT FUND
UNITED

50 Congress Street, Boston 9, Mass.

Fund's

Science

$16,674,319,

Fund, which had

of

Custodian Fund s

The Keystone

distribution.

stock

100%

a

United
were

well
the

give effect to the absorption
March

on

Motors

accused

assets

highest in the company's history

was

nearly record-breaking, while the
production of Hudsons and Nashes
very

net

as

example the output of Buicks,

was

retail

,

to

payable since the Funds first be¬

Since

inrease.

Axe

automobile

Cadillacs

',

•

.

Fund.;

$6.71 a shareon
the outstanding 3,952,951 shares out¬
standing,
compared with
$15,660,628, or
$6.23 a share a year earlier, adjusted to..
equal

same

Investment

$72,766,000.
gain of nearly six and

shareholders

marked

the situation in textiles.

—

variation.

situation,

unorthodox

cline, however, and inventories—
manufacturers', wholesalers' and
'retailers'
remain high although
they are slightly lower than five
months ago, allowing for seasonal

ne

'

United Accumulative

of

published

seasonal

The

vanced.

*

share,
_

of March 31 new highs had been
bty "Ward's NET
ASSETS of Diversified In¬
reached with $34,913,713 of assets,
Reports," however, it vestment
Fund, Inc., according to
seems
unlikely that the March Wm.
Gage Brady, Jr., Chairman, 902,743 shares outstanding and 6,increase was anything more than
amounted to $41,230,594 on April 300 shareholders.
a normal

according to the De¬
of Commerce; and the

an

earlier.j.

Automotive

by manu¬
upturn in

ratio of orders to inventories ad¬

:ysto

assets

of March

a

assets

recession.

a

total
assets

net

as

the highest in the com-'

had

million

contract

any

toward

sales

car

orders received

February,

K.

of

assets

$26,536,553,

were

share

per

synthetic

from synthetics.

The Parker Corporation
200

absence

with

compared

$19.02

all time high of
is

figures issued by Engineer¬
ing News-Record suggest the con¬
tinued

out¬

Co., reported that total net assets
as

cyclical in¬

latest

of

the continued

long-term growth of

Prospectus

The

$187,779,-

1953.The

well

Gage

Orders for lumber were higher
Con¬
fabrics, emphasizes than production throughout the investment diversification.
sistent with this policy, the Fund's
unsatisfactory con¬ first quarter.
dition of the industry.
investment portfolio contains over
The cotton
New
car
registrations showed
manufacturers,
Axe
comments, an upturn in February on a sea¬ 350 individual securities as fol¬
will undoubtedly be excused for
14.7%
bonds, 18.0%
pre¬
sonally adjusted basis, and deal¬ lows:
not feeling sorry for the plight
stocks, 62.3%
common
ers'
sales are reported to have ferred
of the synthetics manufacturers
shown
further
improvement in stocks, and 5.0% cash and receiv¬
after the beating cotton has taken
March. On the basis of the retail ables.

of

a

of

portfolio
selected

other

are

to

share

per

COMMONWEALTH

television

award

Omission

one

several

dustries.

tics.

imitPORffiD

in

William

amounted

31,

as

which

making it, up to this point at least,
an outstanding offset to the reces¬

ton

to

pany's history and give effect to
the merger on March 31, 1954 with
Investors Management Fund,

total

insufficient to

all the

recover

the preceding de¬

on

$21.00

Dec.

assets

happening

to

respect

31

or

on

sets, but with Avco out in front.
improvement in the
The remarkable vitality of the
demand for cotton goods has been,
construction
industry continues,
The

happen, the rail¬

unable to

standing
stock,
$156,418,155 and

It will be recalled that

thirties, when

similar

the

Net

■'

$12.52.

against

preparation as the key to successful selling.«'

fabrics.

coarser

to

seems
are

ground lost

purchasing
power
was
comparatively
low,
Emerson
Radio
&
Phonograph
Corporation developed with great
success the low-priced market for
radio receiving sets
despite the
prevailing slack demand in the
industry
generally.
Something

simultan¬

decline

its

rate

ing, against 5,363,107 shares a year
net asset value was $13.30 a

Broderick,

,

A definite business
recovery on
the other hand should have a cor¬

Brady, Jr., Chairman, net assets of
Fundamental
Investors, Inc.
at

in

by

corresponding 1953
loadings of ore were

and

only 65%.

cline.

planned.

upturn in wool prices has

accompanied

of

53%

were

ACCORDING

to

quite strong.

increased

an

Address.

rubber

week

have assumed fhe lead¬

increase

prices have declined but

and

turned

by

the last week

loadings of coke

of those of the

of the current pickup in
sales, the extent of which
surprised even the
company itself since it has had to

goods raw material
prices has also advanced.
Cotton

Established 1894

One Wall Street

at present, as shown

has apparently

semidurable

compared
with
$67,131,126.
6,233,006 shares outstand¬

had

fund

The

Axe

retail

of

Fund were

United Income

of

assets

Net

$82,880,244,
The

shares outstanding March 31, 1352.

of course,

are

ership

factor. •'
index

Axe-Houghton

,

shares

roads

appears to

the domestic

outstand¬

ing in the four trusts was 13,633,319, compared with 9,713,224 a
year earlier.
:

ists in the rapidly growing field of

Manufacturing Company,
its low-priced
Crosley set,

with

although- mod¬

supply has also been

CALVIN

1953.

the fact that in

Avco

considerable extent by an up¬

a

total in
1952, and this
probably still further reduced

March

three years the earnings of the
manufacturers should benefit con¬
siderably.

Axe states,

that the rise in durable goods raw
material prices has been caused

January

year.

The number of shares

prevails

sonal fluctuations of the previous

curtailment.

probable,

seems

would

in

strike.

of the year.

subsidiaries,

a

states, especially vulnerable to the
type of business recession which

curtailment the remainder
This pattern has been
broken
by the low production
rates of the last winter, and if this
means that the industry is trying
to get away from the violent sea¬

government

steel

The railroads

tion from September to March and

put of their Chilean

not consent to any

common

in

interesting

an

railroads

The railroads' share of intercity
ton mile^ was down to 55% of the

pro¬

of high produc¬

pattern

I

sharp

lessening

Kennecott have reduced the out¬

diversified investment in

developed

set

has

marked reduction

1951, except for the period of

was

be

the
Anaconda and

prices, thus
danger of imports.

Chilean

television

traffic which

a

national

i

New

the

than

more

York

ing

free

increased

have

sets;

industry should

.

1949

duction.

metals

the

a

prices have

seasonal

these

IU. S. mutuat investment company offer¬

For

that

advanced, and the London prices

First, get the facts about Canadian Fund—
a

in

:Ffom

>

of

somewhat

<)

tion

improving.

Class

of

and

advanced

further

Canada

of

have

gain of $30,054,534 over1
March 31,
1953, and a gain of
$17,737,458 for the first quarter

total

the

television

of

of

and February, seasonally adjusted,
was the lowest since the summer

picked up a little,
production
has
been
held
down, so that the inventory situa¬

prices

sales

loss

a

operating revenue since
April 1953, so that the net income

durable

Copper, lead, zinc, and aluminum
scrap

Investing in

in

by the approaching April first re¬

to

the

brought about

duction in excise taxes.

Retail

efficiency
high record in 1953,
things the railroads

repre-^

This

the first quarter.

of

sented

operating

a new

all

offset

slowed down

were

durable goods raw materials
prices
has
advanced
quite
vigorously.

seem

the

on

have done to reach this
goal, in^
eluding
dieselizing, automatic
controlling, and abandoning un¬
profitable lines,
have failed to

to

department
department

to

ratio

inven¬

seems

sales

rate,

loadings
are
Electric power

lower.
production and

The

store

Miscellane¬

put

CORPORATION

Establithed 1930

improved

especially

stores.

ingot production has

extended its decline.

but

tory situations, and this

business index has declined mod¬

FOLDER AND

reached

somewhat

already

are

Thursday, April 15, 1554

.

of this

Railroad

By ROBERT R. RICH

SERIES

RESEARCH

them

of

some

ropes.

.

.

Loa Angeles

*

"

"

K.

President,
said sales were $7,928,211, comspared* with: $6,836,028.
At the
present * rate, the year's volume
'will exceed the $26,880,351 figure
for

all of 1953 by
margin, he said.-

Net

a

comfortable

reflecting increased
security values and an increased
sales total, were the largest ever,
reaching $130,349JIQZ at the close
assets,

Commonwealth
Stock Fund '

Reed,

A COMMON

STOCK FUND

Ask for

prospectuses
describing these mutual investment
funds.

They

may

investment dealers

be obtained from
or

2529 Russ

Build¬

ing, San Francisco 4, California.

Volume 179

Number 5316

The Commercial And Financial Chronicle

...

810,391 shares outstanding, and 5,shareholders.

500

(1703) -43

Continued from jifst
page

made possible decisive

the Allies.
*

CONFIDENCE

that

hold

up,

Immediately following the

consumption

of

will

goods

and

The Chemical

cumulative

rectors.

In his

rise

opinion, employment will

moderately,

will

Federal

and

about

average

Reserve

production
124

the

on

Board's

there

years

has

been

executive

in

posts

the

industry.

./

,7

'

However, strangely enough,
finds private liquid savings the
dream of the alchemist—that
unprecedently high, at $200 of the transmutation of the ele¬
billion, and consumer income after ments—has now become a
reality.
reduced taxes at about the all- The
alchemist sought to change
time peak. Moreover, Mr. Schreder the
baser metals into more precious
reports that three surveys made ones in order to
gain fame and
He

are

dicate

that

busi¬

will (as well as can) con¬

nessmen

tinue

and

consumers

to

spend

at

level

a

just

moderately below 1953's all-time
high.
1
Mr.

Schreder

finds

that

the

economy is developing a firm and
stable base around current levels.

In his

opinion, business will turn

before

up

there

is

material
down turn in stock prices.
any

fortune.

The

modern

chemist

is

transforming elements into other
elements,
even
producing ones
that do not exist in nature, in or¬
der to satisfy a justifiable yearn¬

ing for still greater knowledge of
the
universe.
In
so
doing the
chemist has helped substantially
to improve man's lot, to improve
and prolong his health, to increase
his wealth, and to add to his ma¬

The

terial happiness.

modest

HOWARD

&

Fund's

Balanced

88th

Growth
quarterly report, is¬
approximately
21,000
But enough of the Dark Ages.
shareholders, shows assets of Many of you, I suspect, think of
$111,904,743, an increase of $9,- our chemical industry as some¬
941,487 during the first quarter
thing quite new. Such is not the
sued

of

to

1954.

Shares

outstanding on
totaled 3,343,076 com¬
with 3,253,985 and value

March

31

pared

share

per

$33.47

was

compared

with $31.33

at the year end.
Common stocks totaled 61.5% of
the Fund on March
31, 14% was

invested in preferred
stocks, 17%
in corporate
bonds, and 7.5% was
held in cash, U. S. Government
bonds

and

larger

short-term notes.

The

stock

common

holdings
& light
(11.1%), insurance (5.2%), bank¬
ing (4.9%) and chemical (3.9%).
The following table shows securi¬
oil

were

(12.2%),

power

ties added to and eliminated from
the Fund in the first quarter.
Additions
Indust.
No.

Accept.

Corp.,

Illinois Gas

Winn

&

3»/4S,

Co.

Lovett

Ltd.

2'/2s, 11-3-54
3'/2s, 1979

1st

Groc.' Co.

1974

S.

P.

Deb.

r-

.

American

Airlines, Inc. 3V2% Pfd.
Mississippi Power & Light Co.
4.36%
.Pfd.

Armstrong

Cork Co.
Fireman's Fund Insurance of San Fran•

cisco

Motorola, Inc.
So.

Carolina

v

>>■;

■/•/.■; /■■■

■

Electric

&

Gas

■■■■'

•

Co.

Spencer Chemical Co.
Eliminations
U. S. Treas. Ctf.
U.

S.

Savings

Indust.

Dept.

National
Kansas

&

Field

EATON

Ltd.

Conv.
$3.75

4.20%

Co.

Power

Marshall

$4

Stores

Tea

2'/as, 3-22-54

"F,"

Corp.,

Armstrong Cork
May

of Indebt.

Bonds,

Accept.

1-1-54

3%s, 2-22-54
'47

Series

I

Light Co.

HOWARD

Stock

90th quarterly report to
5,500 shareholders shows assets of

1954.

an

old

as

the

as

colonies

eventually
became
the
nucleus of our great nation
ap we

know

it

In

at

excellerated

an

nation

the

industry

in the New World

started

was

chemical

at

Jamestown, Virginia. A very mod¬
est beginning to be sure but one
with great promise.
The princi¬
pal product was crudle alkali pro¬
duced
the

from

ashes useful in

wood

manufacture

of

The

soap.

venture

shortly failed, largely be¬
agriculture proved to be

cause

In 1635 in

site

Boston, a
John Winthrop, Jr., son of a leader
of the Pilgrims and considered by
near

historians to be the father

many

*the

of

a

chemical

America,

industry

established

the

Huge waves of im¬
arriving on our shores

a

kinds.

England. He cer¬
tainly knew his economics for he
financed
the
plant construction
by selling stocks to friends and

neighbors.
In succeeding years small man¬
ufacturing units, independently
owned, sprang up first in Phila¬

then in

in

other

New

coastal

delphia,

cities

bound

York and
along the
England coast.

increase of $3,088,first quarter of

the

New

leather,
textiles, and many other essential
items in an expanding economy.
Many of you will recall that

chemical industry and in turn

can

to

the

country's

Fund

the

invested

was

of

end

short-term

in

March;
notes

and

the

of

stocks

5%

was

cash.

should

that illustrates

The

PROGRESS

first

Inc., have elected

McCartin, former partner

in the law firm of

Chapman and

Cutler, Chicago,

general

coun¬

sel.

war

broke out between the Phila¬

eral

ham

city,
for

that

and

the

Tinkham

Hammond,
time

United

firm

out

for

gen¬

of

Tink-

in- his

home

Indiana,
service

acid.

the

was'Sno

chemical

place

to

in¬

invest

The)r promptly sold out

money.

their holdings .to the plant super¬

intendent
rived

an^Lwith the

money de¬

from the sale, started

kne#n

now

York.

with

the

as

Company of New

Frankjy I can't tell

whether this^was
foolish

motf?

what

Chemical

a

wise

on

you

their

of

manufacture

the

Indians-^for

a

few

Things like artificial fibers,

A Democratic

President, WoodWilson, and a Democratic
Congress sensed this threat to na¬
tional
security and provided a
tariff structure which gave ade¬
quate protection to the chemical
industry. " Without this protection
States

lay public

manufactured

of

saw

of

put

this

explosives
1812.

he

Thomas

and

Jef¬

plant provided the
in the War of

used

•

In

1823,

equally brilliant
immigrant, Grasselli
established the first
an

young Italian

by

name,

chemical

plant

of

west

the

Al¬

legheny in the then small, strug¬
gling city of Cincinnati.
His

plant, and others established
thereafter

soon

important

were

factors in the victory of the North
in the Civil War.
The prepon¬
derance

of

manufacturing

facil¬

wonders"

Williams

on

his

dicated

plainly

that

strong

a

chemical industry was a very es¬

Progress
I

Since

not wish

do

warfare.

World

War

not

well

a

balanced

I

well integrated.
last decade

or

Germany, in the
of the 19th

so

or

one

cen¬

tury and the first decade of the
20th century, established a lead¬
ership in fundamental chemical
research the effects of which had

a

to

profound effect

international

on

industry of any appreciable size.
We were dependent upon Ger¬
for dyes, a great many drugs

States

in

the

pro¬

United

nitrogen fixation indus¬
of supply of pot¬
Nitrogen and potash con¬
a

try and
ash.

synthetically

sources

stitute two of the

elements

to

three

plant

essential

growth.

Fur¬

thermore vast quantities of nitro¬
gen are essential to the manufac¬

ture

of

explosives.
of

source

In

nitrogen

natural nitrate and

1914

our

Chilean

was

1913

of

extracting
atmosphere.
The

sharply

comparative¬

Only

the

initiative

This
per¬

practical method
nitrogen from the
a

of

brought

on

the

in

Gulf

Coast

World

out

War

our

I

depen¬

Germany for chemicals.
competency,
and

sible

ganic

the

boldness,

imagination

of

engineers made

development of

chemical

years

chemical

chemical
they would
however,
the darlings

the
as

Today,

stocks

of. investment

just

rea¬

investors

and

from

away

industry for
plague.

industry but

for this very

was

bankers

are

There

bankers.

is

why this has hap¬
pened. The chemical industry has
demonstrated
that
intelligently
directed research pays off hand¬
somely. So much so that other
industries are following the pat¬
one reason

tern.

Chemical products and processes

deep

typically short lived because
rapid technological changes effect
changes in the picture of
who uses what, when, and where
are

high grade deposits of this metal
element

It

that

area.

rapid

Synthetic
Ammonia
process, originally —and
how it is best made. A
in Germany, has been change in one chemical product
developed further in this country. because of a new laboratory de¬
(3)

The

This

Process.

developed

of Antibiotics.

Introduction
I

what

these

velopment

the

well-being of most of

ical stocks and suggested railroad

on

meant

have

to

in the past decade.

bonds

The Development of Plas¬
tics. Today, you and I depend an
so many types of plastics that we
probably have long since forgot¬
ten
that
they
essentially
are

and

ago

that

not

too

many

had

of

Over the years we
major revolution in

a

things

are

City

Kansas

elsewhere.

magnitude much

in other industries.

ed with rayon.

have

But

today—in

ical industry, the rate of obsoles¬
cence
is frequently of an order

years

first became acquaint¬

we

widows.

to

old

the

capital investment, al¬
though often necessary, does not
insure
against short life for a
process. In the fast moving chem¬

(6) The Creation of Man-made
is

wonder

Large

chemicals.

It

No

different

(5)

Fibers.

fash¬

solete.

ioned banker shuddered at chem¬

velopments
health and
us

make another ob¬

may

de¬

dwell

discourage

greater than
But does this

investor

the

today?

Certainly not.

the textile field with the introduc¬

tion

of

new

Much

man-made fibers coming

of
into
the picture—many of them with
unique characteristics that make
them
superior to natural fibers
for

a

bewildering number

many

purposes:

(7) The Release of Atomic En¬
ergy.
Within the past decade a
whole

branch

new

of science

has

■

available to the

declining
up as in

a

perhaps
and

nations

have

the

eommon

sense

judgment to employ

the constructive, not the destruc-*

tive

contained

forces

industry

an

in

pos¬
or¬

this

country during World War I and

of

the

learn that

we

atom.

within

the

Within

the

are

much closer to

success

the

of

philosophy that if you reduce
price, you increase consumption,
thereby reducing manufacturing
costs. By making these products

great things for all of us provided

and the good

the

of

chemical industry is based on the

been developed, one that promises

start

dence

the

from

in

'

a

pendent of Chilean nitrate.
brilliant
German
chemist
fected in

r'in the air."

the surface

to

(4)

lacked

lighter frac¬

(2)
The
Frasch
Process.
A
unique method of bringing sul¬

Need

We

thermal

and

chemical

the

change."

the

petroleum resources and cer¬
tainly has helpecl to keep America

As

medicines

into

"on wheels" and

fur

about

chem¬

our

result, the United States failed
develop an organic chemical

and

selec¬

of course,
had much to do with conserving

by anythink I may say that we did not
have a chemical industry prior to
the beginning
of World War I.
We had quite a sizable one but it
was

of oil

but

late John Teeple, one of
early chemist-economists, once
stated "there is nothing certain

The seven are: :

catalytic

The

cracking

ponsiderable part of that

The

tions. This development,

infer

to

technology.

(1)

in

has grown

rate of about 10%

our

the

ones

of

compared to 3% for all in¬

year

shied

ical

brains

industry itself,
industry generally.

quarrel with
he picked are

outstanding' milestones

owes

economy

fertile

average

no one can

the scales in that conflict and in¬

the

chemical industry
an

son

tions, but
that

American
to

chemical

Americans dur¬

him

sential factor in modern

of

ing the past 40 years. There were
who would possibly differ
Mr.

miracle

steady 3% gain has been brought
about by the ever increasing use
of chemistry and chemical engi¬
neering principles not only in the

many

with

been

you

dustry.

chemistry and chemical .engineer¬
ing which have most persistently
affected the economy and there¬
lives of

have

not

chemical prod¬
readily recognize are
only a part of the total chemical
production of this country. Most
of ;it you never see in any recog¬

a

a chemical engineer by train¬
ing, selected what he considered

the

socalled

ucts

at

and

fore

could

This is a role of the
chemical industry but little un¬
derstood by the lay public. The

the

few weeks ago, Walter Williams,
the Undersecretary of Commerce,

"seven

automobile

produced.

thousands of chemists. Since 1925

a

the

rounded

much

a

be

shiny
usually
that without a wellchemical industry, that

Our Debt to Chemists

meeting in Washington of
chemical engineers,
staged only

to

chemicals.
your

'

Developments
At

into

to you

occur

The

such props.

move

step

you

nizable form.

Outstanding Chemical

for¬

to eye, for the out¬

eye

death, however, he abandoned
just too
many to carry around with him.
Today it would take a trailer
this practice—there were

truck to

can

1954 automobile it doesn't

samples of striking new
products.
Long before

—

you

industrial

many

When

Democracy in World War II.

chemical

product

think of is dependent in one way
or
another upon the availability

been ill prepared to play the role
that
it
did
as
the
Arsenal
of

tricks

products of the test

as

tube, products of research. It is
not quite so obvious to the busi¬
nessman
that
just about every

have

would

syn¬

rubber, light alloys, such as
aluminum and magnesium, sulfa
drugs, etc., are identified by the

row

United

many

mention.

thetic

many.

the

are

could

made of natural rubber.

Ger¬

past few weeks, we have come to

Manhattan Island by
and

in

and chemical

sale




cost

relatively small band of chemists

Whether it rates with the story of

$24

list

nucleus

the

of

broad

country at
ruinous prices—prices well below

very

except
the

a

I

this

part.

or

in

^States Army.

ferson

most

was

Haber process was entirely inde¬

University,

law

that

tunate

It

The New

Bank and Trust

practiced

French

bankers', came quickly to the

turers of sulfuric

dustry

in

our

other fields
Synthetic
tires, for example. Today we are
riding on tires that have vastly
superior
qualities
than
those

his

brilliant young

ly small cyanamid plant in Niagara
Falls, Can. In contrast Germany
through the development of the

delphia and New York manufac¬

McCartin, graduate of In¬

diana

industry.

plant in New

York City was started by a group
of bankers. Within a year a price

is

Mr.

chemical

conclusion

DIRECTORS of Investors Diversi¬

as

little story

a

number of pecu¬

liarities of the chemical

York

John W.

you
a

The

oil (12.7%), power and light
(9.9%), insurance (9.8%), chemi¬
cal (6.2%) and banking
(6.2%).

Services,

tell

at

were

fied

restored.
a

Delaware.

duced.

by King George III

in

larger stock holdings by industries

PERSONAL

ton,

This

I

cent

once

many

.

per

economy,

Huguenot refugee, du Pont by
name, established a black powder
factory
on
the
banks
of
the
Brandy wine River near Wilming¬

the Mother Country did not look
with favor on this development.
attitude

There

that

I will not dwell on the individ¬
War of
and the ual triumphs of American chem¬
war between the states
not only istry—there are too many to men¬
required gun powder, but other tion at this time. Years ago my
material. As you trace the history predecessor, the late Harrison E.
of these conflicts you find that
Howe, appeared on lecture plat¬
each one provided further stimu¬ forms around the
country with
lus to the growth of the Ameri¬ what he called his black bag of

a

amounts of glass,

ces¬

German

a

The
Revolution, the
1812, the Mexican War,

politics and world-wide trade.

outstanding totaled and his advisers on this matter
890,191 compared with 863,451 and was perhaps one of the major con¬
asset value per share was $26.90
tributing factors to the American
compared with $24.16 at the year Revolution.
Ninety-five

were

The output of these factories made

Shares

end.

chemicals

Basic

essential in the production of most
of these commodities.

first

New

as

our

as

and

mand

all

pace

rapidly expanding popu¬
an
extraordinary (de¬
for manufactured goods of

lation

in

chemical plant in the area we now
define

an

dumping

ities available to the North tipped

lucrative.

more

of

grew.

migrants
created

today.

1608

modest

Fund's

$23,948,899,
029
during

is

in¬

beginnings

by

chemicals

of

cannot

possible domestic manufacture of

Pfd.

Co.

&

dustry
which

rock

Pfd.

Pfd.
Conv.

Our American chemical

case.

dustry

chemical

peace was

American Chemical Industry's

I

the

made

desper¬
destroy the Ameri¬
organic chemical in¬

infant

can

industry that
have described briefly continued

In 1802

EATON

question

a

hostilities

ate attempt to

the

American

7

We think of alchemy as a black

is

of

chemical leaders

answer.

chemical

art.

for the Federal Reserve Board in¬

trinkets

decided

a

trend toward selection of chemists
and
chemical engineers for top

index

for the year.

sation

Industry's
Outstanding Progress

no

downward spiral de¬
velop, is expressed by Harold X.
Schreder, Executive Vice-Presi¬
dent of Group Securities, in his
Spring report to the board of di¬

victory for possible 10 years ago, even
most optimistic engineers.

A

a

consumer

at

ever-

prices, volume is built
no other industry. Well,
the automobile industry

few others.,

number

chemical

reported

of

significant

new

developments are being
on

at this meeting of the

Society, most of them of nation¬
wide significance.

I prefer in the

few moments left to me,
on

some

to dwell

facts and figures of spe-

the economic development of nu¬
clear power

than

anyone

thought

Continued

on

page

44

-

4i

(1704)

The Commercial and Financial Chronicle

Continued from page 43

ple with specialized skills where
i

The Chemical

search

Industry's
Outstanding Progress

interest

cial

this

of

businessmen

the

to

particular area.

close to
;

Consumer

I

Chemicalization

of

Agriculture

a

Agriculture,
of
course,
is
a
number one industry of the Mid¬
west.
There really exists very
close

relationship
the

and

culture

between

indus¬

try which indicates a desirability
of a more direct tie-in between
the two.

many

of

industries.

chemicals
duction

of food,

In this

of

tion
has

agriculture"
a
huge

the

chemical*.
true

whereas

This
of

now

he,

'■

total

®ur

population

Neighborhood

unless we, and when I
I mean the nation at large,
some very realistic steps on

basket.

we
may
be plagued
pluses at the moment,

the

of

3%

the

most

States.
from

West

This

not

have

shortage

result

of

contributing factors. One,
the low birth rate of

many

-the

30's.

we

are

Another is the fact
not

training

science teachers for

that

sufficient
secondary

our

school, Salaries

so

women

are

Washington by
This

as

teacher of science in

a

schools.

has been in the forefront of many

There

are

a

career

high

our

of

many,

new

developments, estimated that

course,

who, because of their de¬

the

chemical

votion,

direction

$250 million short of meeting the

willing to make great
financial sacrifice, but we cannot
expect to attract adequate num¬

area's

bers of competent teachers unless

"West North Central States is
annual

the

as

demand.

country's

creases

the

some

Certainly

we

population .in¬

will the need for

so

agricultural products

and

I

manu¬

the

states

of

its

North

United

4.7"%
for

States

of

the

10%

of

the

population,

only
investments

capital

i

chemical plants have gone
to this region. Dr. Wessel of Mid¬
west Research Institute estimated
new

that

production
of
inorganic
chemicals in the West North Cen¬
tral States falls short of demand

by about $34 million while organic
chemicals are undersupplied
by
$4 million and synthetic rubber
1xy $10 million. He went on to
point out that some $13 million
of

synthetic

into
of

your

fibers

area,

are

some

imported

$90 million

drugs and medicines, and

some

$20 million of soap products. De¬
spite the growth in fertilizer
pro¬
duction in, the
Midwest, some

$20

million
other

worth

is
It

areas.

imported from
won't

long,

steis decide

There
reason

of

area.

engineers.
sure,

of

Selective

fails

to

what

the

challenge
must

we

of

resources,

manganese!,"

copper,

itej

ore,

lime,

common

amounts

of

natural, gas.

i

in

fire

zinc,

playy *$hton-

salt, and
coal,

includ¬

significant

petroleum,

Obviously,

you

are

:/

[.'it.

t.J

-iV -f




and

r

as

as

superiority
gists

and

is

many

we

the

technology.

turning out
engineering
How

are.

maintain

we

really

thwart

to

Soviet

currently

about twice

Even

selective

are

science

Russia

frequently

consideration

imperialism
remain superior to Rus¬

under

long-

technical

our

this

handicap?

the scientists and technolo¬
we

do train

large

service.

are

numbers
Not

Please

ing

iron

in

into

word

If

means.

can

Service

take

so

funneled off

into

military

in Russia.

understand,

I

not

pleading for deferments of chem¬
ists

and

chemical

scientists

engineers

and

and

technologists ..gen¬
erally, simply because these men
had specialized training.
I
do believe,
however, that we court

have

disaster if

i

fail

>.

I'.l

1

we

;

J

i

to

utilize

civilian

place

results

there¬

conflict
in

the

to

upon

mobilize

peo¬

Difficult

the

cus¬

increased

break
this

of

for

a

ing

the

to

de¬

believe,

after

the

Korean

only

but

war

out¬

hostilities

not

was

was

that

on

the

is

years

country
on

it

as

two

carry¬
rearm¬

huge scale, giving aid to

a

nations

of

Western

Europe

and, at the same time, producing
many peacetime goods for our¬

War III, there is a grave
possibility that the call-up of re¬

as

servists

selves

will

ditions

to

con¬

point where our
produce the sinews of

the

and

chaotic

the

ability to
war

create

minimum

necessities

civilian

our

population will
greatly jeopardized.
It is hoped that there will be
shortly before Congress a bill
which will provide for an intel¬

ligent

call-up

would

eliminate

made

at

Korean

the

the

beginning

of

the

I hope that you men,

war.

business leaders and

as

that

possible rethe terrible1 mistakes

of

currcnce

for reservists

of
thought in
will ^endeavor

your

to

leaders

as

community,

impress

your

Representatives and Senators with

the''desirability of-providing
type

of

that

will

legislation

chaos

Korea

not

in
or

to

event

in

with

tion,

another

World

remember

next

few

years

will

program

reservist

our

have

reached

the

stage where the military will have
complete control of just about
able

every

bodied

the ages of 18

fight

and

and

you

I

19 and 35.

or

to

retain
will

*

this

demand

that

administrators

tional Guard

civilian
I

unless

this

with

and

re¬

civil¬

not

Na¬

officers disguised in

garb.

saw

1945.

They

absolute

succeed

sponsibility be shared
ian

between

man

Germany in

There

may be some satis¬
being second in a foot

faction in
race

or

a

sail

boat

This

race.

certainly is not true when we
think of the grim results of mod¬
warfare.

ern

some

We either overcome

understandable,

but

highly
fashioned ideas and prejudices
this

on

surely

problem

manpower

shall

we

achieved

down

go

nominious defeat

or

to

ig¬

Russia has

once

technological

superior¬

ity.

in

power

ginning

Washington

of

from the
It

took

ment

and

in

few

years

again
we

will

elapse
I

our.

during

I hope that

return.

follow

for

have

we

midst

your

past ten days.

sincere

our

thanks

am

wisely
could

example, who
of

.

for the

,

Society

diversified
al¬

expressed

regret that he is 70

years

20, for he foresees

an

last half of the
to

"Chemical
kind

can

in

the

20th century now

frequently

Century"

reach

old, not

era

a

the

as

when

state of material

ination to try to visualize. Science

chemistry

the ''Endless

constitutes

Frontier"—the hori¬

zons

of which

day.

r

no

one

can'

see
1*

to¬
:

Has Caught

sold.

The

inventories have

reason

not; been lowered
reduction

some

sales

have

in spite of

more,

in

output, is that

begun

to

drop

off.

Lower sales, of course, mean that
fewer goods move off the shelf

and,
the

businessmen

orders

than

resulting

stocks
at

if

even

smaller

-in

place

the

past,
reductions in

net

less

are

than

if sales kept

high levels.

In periods of inflation and ris¬
ing prices, inventories always tend
to

rise.

place

This

not

accumulation

takes

only

in manufacturing
plants and wholesale warehouses,
but

also

on

the

as

well

as

in

retailers'
the

for

this

is

their

reason

prices

always

one

inventories.

gains,

fear that

some

decline,

on

However, when

prices become stabilized
there is

and

The

When

obvious.

rising,

shelves

pantries

homes of housewives.

even

orders

when

or

they

for

may

future

The

decline

is

t

doubt

no

exists

in

of last year, coupled with

tremendous

increase in

plant

had

which

place

taken

the past decade, "led to the
supply of most commodities catch¬
ing up with demand at the then
over

the

goods

ordered
than

which
fool¬

who,

circumstances, kept
his shelves

on

for

more

he

a

indeed

merchant

under present

more

situation

today. It would be

spending for
which began in early hardy

armaments

capacity

all along the line are
carefully scrutinized.! This

more

Up With

Demand

future

actually

who

or

delivery

needed

for

the

efficient conduct of his business.

With

present

our

efficient

and

current

prices, with the result that rapid means of transporting goods
by July the forces making for in¬ from the factories to the retailers
flation

at

were

least

temporarily

For the balance of the year,

over.

and

with

factories

the

can

it

is

difficult

ahead of sales, with the result that
inventories
accumulated
rather

gent

estimate

tutes-

substantially

and

much

the year-end

were

shortly
at

Since then

befofe
all-time

an

they have

de¬

to

which

orders,

to

were

consti¬

inventories.

year

This

however, that

still

are

a

intelli¬

an

what

do know,

we

-

form

as

normal

inventories

they

with

fill most

ease

now

production in most lines continued

larger

than
that there

ago,

clined about $2 billion, but at the

has been considerable reduction in

end of

February, the last date for

them

which

we

have

reliable

they still remained
lion

higher

$2V2 bil¬
were
in

over

than

figures,

they

since
they reached their
peak in October of last year, that
in

lines they are more ex¬
in others,.' and that

some

cessive

than

February, 1953.

probably

It is common knowledge
that
large numbers of automobile dis¬

the

tributors

still

were

loaded

at

up

the year-end with 1953 cars when

the

1954

new

nounced.

less

or

models

This

were

resulted

in

an¬

more

demoralizing the automo¬
for used cars, from
it has not completely re¬

market

which

The

television
Last

which

situation
sets

in

7.1

regard

much

was

year's output

still

remains

level

is

reached.

So

in

long

place,

reasonably expect
vival

the

of

year

nearly

factors

are one

in

It

isted

a

But

the

the

easily
tance

News

tories

earlier.

year

in

re¬

well-

a

of the

disturbing'
level

general

of

total

so

volume

over-estimate
of

the

sales
were

February,

volume

of

impor¬

for

instance,
billion, thus

of $43

excess

our
can

inventories. Total

excess

in
in

of
one

that

enormous

less than two

were

sales

time, If the

should -increase

in the days

to both

regard
sales

and

is

business.

sales is

ex¬

cannot

known fact that fluctuations in in¬

ap¬

million

2

this

as

one

material

a

business.

ventories

excess

sets, almost twice that which

on

further reduc¬

some

reduction takes

sets,

in

there

average

tion to take place before a normal

the

was

million

about 700,000

was

not

was

inven¬

particu¬

ahead, the excess in¬
ventory problem will shortly dis¬
appear. On the other hand, should

larly good during February.
The sales continue to decline, the in¬
Department of Commerce reports ventory problem will continue to
inventories

that

the month

increased

during

by $193 million,

while

sales decreased bv $1.6 billion
der

those

nor

should

too

many

be

with

and

for

us

Will
Let

Sales

Continue

us now

whether

or

has

ahead

lot

be

ever,

to

do

that

to

sales.

One

certain,

how¬

businessmen

whole have
on

with

reasonably

a

on

the

bigger pile of goods

their shelves today in relation
than

sales

earlier. While

they

had

a

year

off

excess

V'
t

should

the

V.'rii j

•

4

done.

-M

jH

b-

%

°

to

Decline

attention to
is

any

materially

Has there been any

eco¬

decljjit.

diminution.4n

liquid assets held by the pub¬

lic? In other words, do the people

have

the

chases if

money

■l%uch

there

i

h

make

pur¬

to want to do so?

data 'as

has been
r

to

they desire so^to do and

inventories,-there still Subject 'seemS

remains much to .be

time

why sales'in the d&ys

a'pood deal-1of cor¬ ab^tftey likely

rection has beeri made in ;\£orking

our

there

not

nomic reasoh

a

turn

conclusions

be drawn from them. The weather

can

further

some

might become quite serious,

un¬

for

February of 1953.
These
unadjusted .figures .must
not be taken as absolutely correct

if*
4.to t ;J

not

or

product is too
large depends upon the rapidity
with which that product is being

delivery
Supply

man¬

well-being that staggers .the imag¬

including

Whether

any

all inventories

asking.

Chemical

inventory of

months' sales at that

Former President Truman in bis
address of welcome to the Amer¬
ican

an

of

the great

It is yours

inventories.

cess

resulted in inventories at the close

growth. You

a

chemical industry.
most

of course, knows for
just what constitutes ex¬

one,

if

City in 1964

sense

Excessive

we

that

in your midst men of great
vision—men like Kenneth Spencer

potentialities

which

of

of the number that actually moved
into the hands of the public. This

a

have
for

purpose

expenditures

proximately

but

that this great city will have taken
full advantage of the opportuni¬
ties the chemical industry offers

for further fantastic

that

No
certain

are

this

profitably be curtailed.

same.

usual ten-year cycle

and return to Kansas

arma¬

decided

for

other

some

re¬

before

sure

our

safely reduced.
It also
decided that there were

the

the

be¬

be

to

profession,

the

mandate

a

at

and

program

could

in

came

at

with

look

new

covered.

hospitality

1953

expenditures

chemical

appreciation

re¬

out¬

people to stop inflation.

a

conclusion may I express on
behalf of all my colleagues of the

warm

taxa¬

natural

our

productive

our

Administration

new

bile

In

higher

be increased enormously.

can

A

high.

prostrated

a

and

put

War

within

are

the

pay

mounting

ever

war

that

the

that

the

to

want

inflation

great

so

before

sources

summer

the

did

we

price

the

III.

old

If

prices

complete

of

full-scale

a

began.

reservists

on

lead

the

it

as

Question

Inventories

inflation

with

of

The

began

mand, higher prices and eventu¬

ing

administration.

World

d.'flU

i:

constitutes

and

referred
am

flock of Colonels.

a

ceived

careers.

unfortunate

Unfortunatety the administration

You have im¬

portant natural

another

we
have a shortage
trained scientists and
You have all heard, I
of
Selective
Service.

graduates

Central States

the
and

why

highly

am

future

on

is

from other parts of the
country.

particu¬

to
city

chemists, scientists, and engineers
obtain their inspiration for science
and technology in their last
year
or two of high school.
This is the
critical period when most
young-

sia

larly to those companies with
headquarters in the West North

this

of

of

however, before your area prob¬
ably will be exporting rather than
importing
fertilizer
materials
Truly these figures present a
tremendous icha lien ge to the
chemical
industry and

particularly

leaders

to
find
ways
and
making the profession of
science teaching, indeed all teach¬
ing, in secondary schools of your
community
more
attractive
fi¬
nancially.
The vast majority of

we

be

obvious unsat¬

very

environs

means

Dakota, Minnesota, Ne¬
Iowa, Kansas, and Mis-

pouri contain almost

a

appeal

business

and South

braska,

correct

isfactory condition.

more

factured goods.

Although

us

If the United States is
suddenly
called

are

*

hardly

control,

tent individuals consider

Midwest Research In¬
stitute, which I would like to say

4

days of the last century.

Let

Shortly

Korean

took

tomary

men; ■will
unattractive

that only very, very few compe¬

One of the speakers, a man

your

in

are

screw

paid these

and

Central

production

military leaders who

some

the

another turn

still living in the "spit and polish"

Please

the

is

of course, is

significant

North

equilibrium.

by

dustrial research.

chemical engineers dealt with the

the

will

we

available for fundamental and in¬

resources'for the chemical indus¬

in

fact that

sufficient creative scientific minds

symposia held here in Kansas City
last week by the chemists and

try

likely to shrink—due largely

the

to

feeding now. This challenge can
only be met by utilizing more and
more chemical
knowledge.
of

of 3%, instead of expanding is

very

nu¬

year

a

ure

tritional values for nearly 50 mil¬
lion
more
people than we are

One

we

during the past 25
years.
Highly competent econo¬
mists tell me that by 1960 this fig¬

sur¬

providing better

future,

of the country has averaged about

diffi¬

a

that the wonders of chemis¬

minutes ago I mentioned
that the overall industrial growth

face in

the not too distant future
cult task

in

after,

for

A few

While

with
we

Selective

by

be

face a serious
shortage of such creative minds.

of 160 million souls.

bread

problem
some of our

manpower

Likely Shortage of Chemis'.s

seeable

By 1975 it is estimated that agri¬
will
be
called
upon
to
feed at least 210 million people
and a large part must come from
nation's

followed

01 the Business Level
and

that

one,

uncertainties

try have only been brought about
by brilliant chemists and chemical
engineers. Today, and in the fore¬

culture

the

this

as

real

some

important

as

It must be obvious to this audi¬

years

in

is

ob¬

that

ence

amounts of plant nutrients. Today
f

the

audience

an

scientific

A

fertilizer what¬
very
minimum

only

or

soever

have

we are likely
to see
future growth very badly stymied.

farmer

many

policies

stop kidding the public. Selective
special Service at the local board
level
in
this is civilian but it
is guided by a
United
Major
General
surrounded
in

be less than

influential

the

particularly

too

no

of

would

face

take

farmer
of

Midwest

not

employed

ago,

many

consumer

is

the

I

country.

area

I

to

and

feed, and fiber.

become

opinion in this country today con¬
demns
much
of
the
philosophy
that governs many of the stupid

within

we

of the "chemicaliza¬

era

Factors in Determination

enlightened public

ally larger output.'

and

essential to the pro¬

are

indus¬

say we,

In turn,

is

14

page

briefly on the
opportunities that exist

rials to the chemical and chemical
process

this

touched

out

mate¬

raw

try

This

sense.

Service officials aided and abetted

jective, however, if I did not point

However, this close rela¬

furnishes

goods.

future of the chemical

States.

tionship has not always been as
apparent as it is today. Agricul¬
ture

of

painted, I believe, quite
picture for you concerning

rosy

production.

common

I believe that

have

the

and

just good

areas

from

particular

agri¬

chemical

large consuming

Continued

they can contribute most to our
;
industrial development and in re¬

Thursday, April 15, 1954

...

i

-'

<.

we

hays

on;

this

to " indicate ~ that
no

diminution

in?

1;

■••i.'r"

'

r

* i. i

Volume 179

Number 5316

The Commercial and Financial
Chronicle

—

the

liquid assets of
during the past year.

'

The

Board

Federal

I

System in co¬
the
Survey Re¬

with

:V"

for

..

not

am

Obviously

University of

y

,,

.

>

myself in the role of bond¬
holder; than : in that
of
share¬
holder.
'

.

criticizing this change.
a

be followed in

To be
that

time of busi¬

a

to

from them

secure

tion

their

of

some

plans

for

indica¬

the

the

have

had

must

years

be

considered

in the present

I

frequent last year as they
in 1952, .nevertheless "liquid
holdings increased and were
again shown to be widely distrib¬
as

find

can

were

leads

asset

borrows

uted."

About

non-farm

two-fifths

consumers

of

of

previously

above

will

be

rates

but

is the

now

When
time

time to do
if

asked

so.

this

a

at

at

funds in the market.
be

can

encouraged

not

to

buy durable goods, the only through increasing demand,
showed no over-all change but also by decreasing prices. In
in the
proportion of consumers fact, there has been plenty of
who thought it was a good or a evidence
recently that when the
&aCi time to make such purchases. public
thought
bargains
were
But
the Tysons
expressed for being offered, sales in good vol¬
ume

chattg5£t Considerably.

immediately responded.
The most frequent reason glvtr.l Lately there has been a good deal
for not buying at this time was of dlSCu>oion about amending our
"prices are too high" or, to put it tax structure §5 3S tO aid business
another way, "prices will be lower

time

some

future."
in

in

revival.

not-too-distant

the

There

the number of

much

decline

some

was

who

consumers

to

is

larger than that given in 1952.

was

regard

the

to

houses and

household

The number, while
than

-smaller

purchase

quite
to

the

spend.

been

taxes

What

so

more

to

seems

important at this time

as

possibly

Joo

-

has

taxpayer

consider

what

effect

tax structure might

our

have

costs

upon

and,

The
If

was

cor¬

taxes

after

thing which is

very much needed
at this time when we want to en¬

The

the

present

economic

new

March

The

state
may

of

will

the

the

of

mind

;well

this

of

determine

business

the

the

con¬

factor"

the

extent

decline.

Despite

recent

It is

income which the
for

has

result

than

1949 recession. There is conclu¬
sive evidence in the accumulation

that

the

favorable

as

market

business

a

definitely

larger

than

for

is

factors

I

mearly

all

on

to

sales

give attention to the

sufficiency
TIere

and

situation

the

favorable

more

consumer

is

the

;year

when

ago

money

time

and

paign

a

should

be

and

make

to

success,

made

lower

this

cam¬

prices.

is

No

Stock

of

some

Mr.

have

you

take. I

to

uation

think, however, the sit¬

calls

for

the

complete

think

the

for

before

vention

consideration

should

cise

to the reduction of other

taxes

a

leads

to

price

of

almost

reduction

the

ex¬

Other

situation

calls

direct government inter¬

any

do I think it calls for

nor

government

The

selling

have

on

which

reductions

those

already
which

in

taxes

been

which

made

plus

contemplated

are

in

:and
interest rates
rising, today they are levied and consequently the President's program will re¬
duce Federal taxes by an amount
just the opposite condition exists. stimulates sales.
3since July of last year, interest
estimated r at
$7.5 billion. When
Whi^e no doubt somethingl could it is further borne in
rates have lost most of the gains be said for the dividend
mind that
exemp¬
the government by the end of this
which they registered during the tion feature of the
present tax bill
fiscal
year
will
previous two years. Today real as passed by the House, if it could
probably have
-estate
mortgages which only* a be shown that business expansion spent in excess of $3 billion more
^ear ago were
of

four

&eing
=afraid

traded
it

selling at discounts

five

or

will

points

at

be

and

par

not

are

now

I

am

long before

-they command a premium. Like-wise, corporate bonds which were
.floated at that time to yield be¬
tween
3V2 and 4%
are
already

beihg hampered by a lack of
equity capital, I cannot help but

than

think this proposal is not particu¬

deficit

larly

it would appear that it is
doing all that should be expected

was

suited

nomic

to

the

situation.

from

the

present

Wholly
double

of

cry

eco¬

apart

taxation,

dividend receivers have not fared
too

badly during the past decade.
Looking over my own small port¬

it

it takes

is

it

of

in

has

decade

plied additional reserve funds in

stocks

my

were

paying

twice

the dividends which they paid be¬
fore
and
during the war and,

without

exception, all of them
selling
at
higher
prices,

were

and

a

duration

halt without

money

chased

to

I

own

still

help

finance

them.

the

war.

Somehow

or

half

inflation.

was

be

some

brought

to

a

disorganization

is to be preserved. We al¬

people want

I

stimulating

to business. But it must be stopped
if the purchasing power of our

ready have

Then

of

made earlier that

cannot

of them in fact having more
which I pur¬

next

inflationary movement of such

doubled

price.

a

the chief characteristic of the last

many

looked at the bonds

run

this amount

way

was

than

in

to

It

is

ment

also

a

a

50 cent dollar.

cheaper

inevitable

expenditures

Few

one.
as

been

govern¬

and

change their complexion that

cer¬

of $3.9 billion, While

other

:a

year

'fcanks
i

ago

they were cautioning

bonds had lost one-half their pur¬

to

employment. But the recuperative

chasing

powers

be, conservative

in the

^granting of credit, recently one of

-them

in

.

a

public.

speech% at

.Chicago urged banks to be more
I liberal

in

the granting

of credit




when

I

power and how they were

only giving

me

less than 3%
was

thought how those

to

could not

be

a

yield of

a

little

and how that return

eventually

help but feel

taxed,

I

more sorry

tain localities will have

some

of the country are

so

un¬

great

and its basic economic situation

sound

for

that

there

thinking that

is

little

over

a

the

more

for his

dollar, it will not be long
before the volume of business will

again

be

the

on

upturn.

Time does not permit me to dis¬
cuss
the long-term economic
forces that govern the outlook for
business in the distant future. It is

scale seldom

on

a

view

of

in the past!

seen

this,

is

it

reasonable
to expect that the temporary shori;
ones,

if

even

factory,

-

growth

from

sell

as

long
hinder * this'
taking place?- My

opinion is that the advice

own

to

unsatis^

somewhat

can-

this

country

gpod today

it

as

short

not

is just

ever was

past.

in the

'

-

•

so

reason

reason-

able period of time the necessary

Boylan; Roscoe
Ingalls, Ingalls & Snyder; MayC. Ivison, Abbott, Proctor &
Paine; Robert F. Mulvany, Irving;
Lundborg & Co. (San Francisco);
Joseph M. Scribner, Singer, Deane
& .Scribner
(Pittsburgh),' and.
John O. Stubbs, F. S.
Moseley &

C.

nard

(Boston).

distinguished

Boylan who

in

the

ner

1925

in

after

at-

Harold W. Scott

tending
Princeton
the

War

II

1945

as

as
a

Captain

a

and

Chairman of the

was

In January this

made known

considered

he

his desire not to be
for

Crooks

Mr.

year

is

re

-

nomination.

partner

a

in

the

Stock Exchange firm of Thomson
& McKinnon.

Mr. Scott rendered
service

the

and

the

to

financial

Chairman
mittee

on

the

of

distinguished

Stock

Exchange

community

Advisory

as

Com¬

Public Relations during

period between the retirement
President

May,

1950,

of

and

President

of

September, 1951.
mittee

Emil

Schram

the

appointment
Fpnston in
Mr. Scott s Com¬

Keith

charged with the

was

sponsibility

of

confidence

in

in

increasing
the

re¬

public

usefulness

and

integrity of the Exchange and of
fostering a realistic understand¬
ing by the public of the risks and
advantages of stock ownership.
was largely cred¬
having initiated the ex¬
and intensive operations

of the Stock

Exchange in the pub¬
lic relations field today.

Nominating
Committee,
headed by Charles K. Dickson, re¬
nominated

one

Harris,

of

Henry
Upham &

governor

Harris,

Co.—and nominated the

eight

new

years

terms:

Jacob

Governors

M.

1951.

Scrib¬

Another
a

Vice-President of the As¬

Total
is

membership of the Board

for

three-

Renominated
the

Gratuity

death

to

benefits

to

ceased

members

were:

John

Rutherfurd

be

Fund,

Trustees

which

families

of the

pays?

of

de¬

Exchange

Rutherfurd

of

John

&

Co; and John K.
Starkweather, Starkweather & Co.
The

1954

Nominating Commit¬

tee also proposed a new Nominat¬

ing Committee for 1955:
Stephen A. Koshland, Carl M.
Loeb, Rhoades & Co.; Joseph A.

Martin, Jr., Gaines & Co.; Richard
H. Moeller, Schirmer, Atherton &

Co.;

Clarence Southwood, H. INL
Whitney, Goadby & Co.; John J.
Trask, Francis L duPont & Co.;
Samuel

W.

West, Beauchamp &
Lawrence Bogert,' Jr.,
Eastman, Dillon & Co.; Harold H.
Cook, Spencer Trask & Co., and

West;

H.

Ralph Hornblower, Hornblower Sc
Weeks.

Elections will

May 10.

be held

Monday,
''

'

Paine Webber Adds
I

(Special

to

The

Financial

Chronicle)

DETROIT, Mich.—Peter S. Cordan

has

become

affiliated

with

Paine, Webber, Jackson & Curtfe,
Penobscot Building.

'

i;

,

NoW With
p;rfc»
(Special to

McCarley Co.
"

The

Financial

ASHEVILLE, N. C.

Chronicle)
—

Chester

Brown, Sr. has become affiliated

Cahill

,

33.

following

Abraham

Bloch,

Mr.

and

to

—

*

Bleibtreu,

Elmer

1953

sociation.

Committee

ited with

to

1950

nominee, Maynard C. Ivison, is

Lt. Colonel.

Richard M. Crooks, the present
Chairman, will complete his third
one-year term
in that office on

May 17.

1952

from

former

University. He joined
Corps at the start of

Air

World

Co.;

P.

Mi). Ingalls headed the Association

business

U.

of

Robert

includes

resigned as a Governor, and two
former Presidents of the Associartion
of
Stock
Exchange Firms.

his

from

His

number

a

Board from 1947 to 1951, when he

brokerage

as

It

Governors

new

in

of

started

the

Exchange

Bloch; Robert P.

respects.

a

The

*

The amount

that

so

will get somewhat

Exchange

panded

decline

possible

as

consumer

is

Governor
the

as

An

of

the

Mention

I

supervising banking au¬
thorities completely reversed their
credit
policy some
time about
-ami<f-summer of last year.. During
the
last
eight months of 1953,
through open market purchases
=and through a reduction
in re¬
serve
requirements
on
demand
rtdeposits, the Reserve banks sup--

likely

and that

business.

folio of investments the other day,

Our

twice

of

taxes

year,

only 2.91%.

surprised to find that most

in

altogether

Ibeing refinanced on a 3% basis.
-One was recently offered to yield

was

in

does

The slate of the

Scott

left in

expendi¬

tures—quite the contrary.

the

products

present

increased

immediately
in

might

business.

reducing taxes, which I
have already mentioned, I do not

elimination of most of these taxes
any

government

revive

demands and if manage¬
everything possible to
and distribute goods as

wage

ment

produce

Ex¬

by

far

the

of

Co.

change!

true

still

no

doubt

of

the New York

costs

reduce

It

Governors

effort

every

to

Board

than

was

tight

was

un¬

hand,

of

evefy company put
vigorous sales campaign at

career

recently
the right sort of action
was

types of taxes. A reduction in

agement of sales. In contrast to

outweigh the

of

the

that

to

a

Federal

be given

encour¬

fa¬

as

take

the

hardly

could
to

the

Scott, a partner in
the Stock Exchange and invest¬
ment banking firm of Dean Witter
&
Co., has been nominated to

actions

in

which

credit.

of

cost

that

W.

portant
this

convinced that

restraint is shown,
the part of labor in the matter

on

Scott Nominated by N. Y. Stock
Harold

Chairman

situa¬

enough to justify

increase

taxes

made

and

are
partially
credit, it is impor¬
when considering the outlook

tant

doe

goods

houses

^purchased
Tor

durable

most

forecaster, it

since 1949. He

material

As

relied

On the other

ones.

excise

years.

The Sufficiency and Cost of Credit

be

can

saying

been wondering why I have thus
omitted mentioning possible

tion is severe

previous

are

4as unfavorable
business situation.

the

the stock

upon

Today there

well

as

in

serve

a

Recovery '

am

reasonable

In

be certain what

one can ever

factors
If

relatively good

a

the future holds.

deficit, then the reduction in the

still

the

for automobiles.

keeping a tight grip on his
pocketboolc* Qf course, it is im¬
on

if

sufficient for the purpose at hand
output for the second quarter to state that they are all
making*
of the year by about 7%. Indica¬ for
further growth and progress

any

recent past.
They are
spending even less of their in¬
comes today than
they dfd in the

savings

Personally, I

its

time in the

pf

was

industry
plans for increasing

made

now

politi¬

support.

cheaply

that

Likewise,

have

consumers

spending

spending

cheerful than expected,

the

mess.

A Basis for

March

over

estimated that

more

with

sad

a

cians anxious to
get back in power
are
making statements that would
lead one to think that the
present
situation is much worse than the

any

approxi¬
mately 500,000 of these were sold
during the month. This experience
was

are

apparently always
expecting the worst to happen in
this country—if
they do not se¬
cretly. hope for it—have been pre¬
dicting that by fall we would be

facts

output of passenger
was 524,000, the
larg¬
month since last Octo¬

est for any

ber.

favorable

available

for

The March

vorable

relation to the

2%

up

foreign commenta¬

many

who

This

automobiles

sales

lower in

than

1953, while public
slightly down.

increase in unemploy¬
ment, personal incomes after taxes
have fallen less than 2%. Retail
are

Total

history. It is inter¬

was

tors

45

building in

billion.

more

our

it

as

No

be

$2.5

esting to note that private spend¬
ing was responsible for most of

year

which

in

highest

month.

new

good

a

in

contract

the

were

that

reached

March

Paramount

sumer

for

likewise

was

this

depends, are
improvement.

construction

record

tions still favor

Consumers' Attitude

better way to in¬
crease sales than to reduce
prices.

Question of Taxes

that

who

the

fore in corporate taxes makes
pos¬
sible a reduction in prices, some¬

that there is

appliances.
year,

those

from

Corporate

the

therefore, prices.

of

somewhat

last

for

to

changes in

Similar intentions were expressed
in

give

money
me

$11

discussion

toward ireducing

to

as

buy new automobiles
from the figure given in 1953 but,
on
the other hand, the number
planned

Unfortunately
the

of

aimed

dividends

for

survey

their views

products—to

are

believe

Sales

good

cor¬

those

higher interest; courage sales.
this time, I cannot
help
.

" era! Reserve

-

was

their

part of costs, not much
different in degree to other costs
of
production. Reduction there¬

This obviously
indicates. that there is an ability, quired reserves of member banks
to buy if consumers believe that;; or putting more additional Fed-:
*

better

and

owners

purchase

receive

that it would be a
serious mistake to push them even
lower either by reducing the re¬

taken.

be

have this tax reduced rather than

investment

arguing

would

the
upon

of

Dodge Company reports

expenditures for

to give a tax credit to

what

borrowed,

•

concerned—the

everyone

who

does not exist,

be

not

for

it

porations, their

purposes,
whatever the interest rate
may be.
While I do not want to seem to

shown in any survey

so

and

over

that situation

money

Of striking importance was the
finding that a larger proportion of
consumers
reported owning more
than $500 of liquid assets this year
was

for

anyone

that

all

least

than they had in

than

submit

porations.

ever

"feeling better off"
previous surveys.

as

I

it costs them to borrow it. When¬

expressed

consumers

themselves

either

something

ceiving more income last year,
only about one-fourth re¬
ported receiving less. It is inter¬
esting to note that a larger pro¬

and

times, I share this be¬
lief.
Today, however, with our
corporate tax rate so high as 52%,

just because it is

money

financing.

large when those who borrow it
think they can put it to some use
which
will
give them
a
little

re¬

while

portion

that

mainly

marked

on

business

of

In normal

in the past which

or

believe

country
The F. W.

awards in March

less debt

cheap. Money is borrowed by and

the

reported

to

me

evidence

no

of

re¬

and

prosperity

equity financing

1953.

not

the

the belief that it would be
good
for the country to
encourage more

low,

those which existed in

even

because

upward

automobiles,

which

individuals, but showing

devised

was

an

construction
manufacture of

full well that the
back of this partial divi¬

it

for

dustries,

say

realize

rather

during the past 15

The survey this year showed that
while increases in income were

me

adjustments

vival in business will not be
made.
Already the two principal in¬

dend tax exemption is not to
give
relief to certain

past, all interest rates which

we

pur¬

chase of durable goods and houses.

I

perfectly fair, let

purpose

Michigan has for the last several ness decline. I cannot
help but
years made a survey of 66 areas, wonder,
however, how much help
including the 12 largest cities of making low interest rates even
the country, for the purpose of lower is to a revival of
business.
finding out information on the fi¬ And it should not be
forgotten
nancial position of consumers and
that, judged by the experience of

(1705)

;

!

for

credit policy suitable
period of inflation is not one

a

to

!.

-

consumer credit

at that.

the

search Center of the

,

...

and, of all places,

.*

of Governors of

Reserve

operation

people

our

...

...

.

.

&

with

&

son

McCarley & Co., Inc., Jack¬

Building.

46

The Commercial and Financial Chronicle

(1706)

Continued, from page 5

,

&

.:,X' r"X'; /.

■

Bradstreet, Inc., states. After a month-long increase, casualties
have dipped for the second consecutive week; however, they

now

The Stale oi Trade and

Industry

Labor and Commerce reported that

United States Departments of

March quarter

expenditures ran at an ann.ual rate of $36,100,000,000. This compared with spending of $34,000,000,000 forecast for
all 1954 by the two agencies last November.
the month

In

of

March

alone, building outlays amounted to

This total was unchanged from March, 1953, but
seasonal increase of nearly 10% over February.
Most of the gain over the preceding month, the departments said,"reflected expansion in private housing and public utility con¬
struction, plus gains in highway work."
$2,500,000,000.

represented

a

stock

New

corporations

listed

during

the

short

month of
9,543, re¬

10.6% below January's
This decline represented the small¬
est January-February drop
since 1946, when this series was
started.
The February count of new company formations at
8,533, was 7.4% more than the 7,943 for the corresponding 1953
month and marked the higest February total since 1947.
8,533

numbered

February

or

ports Dun & Bradstreet, Inc.

The

first

since

1954

witnessed

total

a

incorporations, the highest for any

business

new

of

months

two

18,076

of

similar period

The current total compares with 17,411 last

1948, it states.

representing a gain of 3.8% and with 15,495 for the cor¬
responding 1952 period, a rise of 16.7%.
year,

I

continued

above

far

the toll

decline to 208 from 230

Further Mild Contraction

C))}

trade weekly.

>

j

diversity is reflected in steel ingot production rates in
the various districts of the nation. In eight of the country's 13
This

districts, rates were above the national average the past week.
In the Chicago area at least two steel mills are rebuilding
inventories of semi-finished steel. Both found their planned re- /
duction was carried too far.
Despite the buildup there is the

possibility that ingot output in that area in April will fall below
that of March, this trade magazine reports.
The lowered demand for steel continues to sharpen com¬
petition for business, and scattered price cuts are resulting.

In;

the East, one producer lowered hot-rolled and cold-rolled carbon
steel sheets $1.50 a net ton. As a result, "Steel's" price composite
finished

steel

is

Other
changes in domestic prices include the abandonment of a stressrelieving price extra of 1.25 cents a pound on five grades of
the chromium-type stainless steel billets and bars.
Pressure on prices extended to imported steel with prices on
several leading grades of steel from the western European coun¬
tries being down substantially, "Steel" notes.
on

American

The

$113.70

Iron

net ton, down three cents.

a

Institute

Steel

and

announced

from

37

and

week

of

1953.

twice

were

Fifteen

tons and

week ago.

a

The industry's ingot production rate for the weeks in
based

on

annual capacity of 124,330,410 tons

For the like week

a

1,613,000 tons.

month ago the

A

year

placed at 2,228,000 tons

comparable because capacity
percentage figures for last
117,547,470 tons
The

■f

as

98.9%.

was

year

rate

as

was

1954 is

of Jan. 1, 1954.

67.6% and

pro¬

the actual weekly production

ago

or

The operating rate is not

lower than capacity in 1954.
are

based

on

The

annual capacity

of

of Jan. 1, 1953.

production of steel

in March

ingots and steel for castings,

an

was

7,290,000

increase of

more

net tons

Electric

than

206,000

Output Continues Downward Trend

The

current

figure represents a decrease of 67,000,000 kwh.
week, but an increase of 395,000,000 kwh., or
the comparable 1953 week and 1,242,000,000 kwh., over

below the preceding
over

the like week in -1952.

Car

*

Loadings Continued to Fall in Latest Week

Loadings of revenue freight for the week ended April 3,
1954, decreased 2,124 cars, or 0.4% below the preceding week, ac-^
cording to'the Association of American Railroads.
Loadings totaled 599,302 cars, a decrease of 105,215 cars or
,

14.9%

107,587

below
cars

the

corresponding

1953

week, and a decrease of
or 15.2% below the corresponding week in 1952.

U.

S.

Auto

Output Rises 5.4% Above

Level of Week
Automotive production for the
week ago,

the

corresponding

with

liabilities

in

More concerns failed than last year in all industry and
Casualties among manufacturers were twice as
heavy as in 1953 and among wholesalers and service establish¬
ments the rise was even sharper.
Geographically, failures were lower duruing the week in five
slightly.
trade

groups.

of the nine areas,

including the Middle Atlantic States with 98 as
against 105, the Pacific States with 49 as against 54, and the East
North Central with 29 as against 34.
In contrast, failures rose
slightly in the New England, East and West South Central 'States.
Mortality exceeded the 1953 level in all regions except the Moun¬
tain States which held steady.

The sharpest rise from
appeared in the South Central Regions.

same

a

latest week rose 5.4%

the

sales

tax and

the
in

cut

a

excise

the

markedly.

rose

what below a year ago.
The de¬
lay in appliance purchases due to
excise

tax

Food

Price

Index

April j6j

This

.

with $6.32

compares

on

ments

Registers

remained

the corresponding date

a

total

sum

Wholesale Commodity Price Index Reflected
Lower Trend in Past Week

♦

markets

unsettled

were

with

moted

and

dairy

products

of some
markedly
above the previous week and in

some

upward

of

the season early in

sharply
buying stimulated by the announcement that imports

on

would be restricted for another year.
at times wheat closed lower.

Depressing influences

included

turned

rye

Although showing strength
">
the

lack

of

any

export demand and improved weather conditions

appreciable

over

wheat

i

belt.

declined

Oats

was

above

areas

a

year ago.

coffeie prices

slight dip in

a

however,

re¬

consump¬

announcements of

hoarding purchases.

some

The volume of
in

the

period

wholesale

ended on

day of last week edged
from

the

week.

level

Some

Easter
and

the Winter

slightly

up

preceding

hurried re-orders of

dealers

placed

were

had

difficult

a

time meeting delivery dates.

Department

the

Federal

dex

for

store

week

1954

decreased

of

the

the

that

week in 1953.

11%

13%

to

re¬

was

the

1954,

April 3,

store

sales

of

crease

In

27,

similar

decline of

a

reported. For the period

was

1

the

For the four weeks

April 3,

*Jan.

in¬

March

of

a

April 3,

below

week,

from

ended

Board's

ended

decrease of 11%

a

ported

on

taken from

preceding week.

previous

1954,

sales

as

Reserve

the

level

ment

largely in sympathy with other grains, while

trade

Wednes¬

the

of

merchandise

some

rye,

After hitting the low¬

the period,

consumption

country-wide basis

V

prices,. except " for

showing moderate declines for the week.
est levels

;

preceding week.
The lower dairy
prices resulting from the price
support cut were heavily pro¬

Mildly

a

^

?

The general price level, as measured by the Dun & Bradstreet
daily wholesale commodity price index, displayed a mildly lower
trend during the past week.
The index closed at 276.97 on April
6, as compared with 278.42 a week earlier, and 280.05 on the cor¬
responding date last year.
-

Grain

ex¬

practice.

common

a

to

price shading

as

Food volume increased from the

in

opening week of the year.
of the price per pound
of 31 foods in general use and its chief function; is to show the
general trend of food prices at the wholesale level.
'
index represents the

lower

additional price increases resulted
;

the 1954 low point of $6.85 in the

The

the

continued

volume

seasonally

tion;

v

as

advertise¬

for

V

Auto

pand

sustained

was

announcing

prices.

yebr.jago, or^a gain of 17.1%, and represents an increase of 8.0%
over

cuts

waited

year ago

Following an eight-week rise to an all-time? high of $7.42
two-weeks.,ago, the wholesale food price index, compiled by Dun& Bradstreet,'Inc., fell 2 cents last week to stand at $7.40 on

6%

1954, depart¬

registered

below

de¬

a

the

corre¬

sponding period of 1953.
Retail

trade

volume

in

New

.

week

last

Flour

year.

prices developed

York last week exceeded the like

period

a

year

according to

easier trend as buying/interest held
at a low ebb.
There was some expansion in rye Hour bookings
but demand for hard wheat bakery types was limited to scattered
fill-in replacement purchases.
Coffee showed a moderate rise
for the week despite a sharp drop from the all-time->hrgh reached

ter

last Friday.
The easiness in late dealings reflected Jhe improved
supply position resulting from the termination of the/dbck strike.

following

an

Another round of price advances of from 5 to 6 fcfehts a pound

in roasted coffees

announced

was

as

the week

drew.M

a

close.

irregular and developed a weaker undertone in¬
fluenced by a sharp drop in the London market and the release
of supplies following the end of the dock
strikej^Warehouse
stocks

of

was

reported at 110,664 bags, coiftparing with
115,254 a week previous and 69,687 bags a year ago./v The lard
market displayed a firmer tone aided by the contihhed uptrend
in live hog values which rose to the highest levels since Septem¬
cocoa

ber 1948.

were

Market

receipts of hogs have been running consistently

below the level of

a

year

a

narrow

range

and

Sales in the 10 spot

markets

were
smaller and totalled 72,100 bales for the week,
against 79,700 a week earlier, and 68,400 in the same week last
year.
Easiness in the market reflected dullness in textile markets

and

the

gradual

enlargement of

"free"

supplies as loan with-,
Foreign demand showed some
were moderate in volume..

drawals continue to exceed entries.

improvement

and

CCC loan entries

sales

for: export

during the week ended March 26

reported
bales, down from 83,600 the week before. Repossessions
during the same period totalled 80,800 bales, against 86,600 the
previous week.
Stocks of 1953-crop cotton still in the loan as
totalled

Trade Volume Perks Up

on

the

latest

week,

the

was

immediately

one

Easter

when

sales

are

traditionally lower.

According

store

the

the

to

Board's

serve!

sales

Federal

index

Re¬

department

in New York

City for

weekly period ended April 3,

1954,

registered

decline

a

8%

of

below the like period of last
year.
In the preceding

decline

a

was

reported

similar
the

1954,

week, March 27,
of

of

ported.

(revised)

that

1953,

weeks

of

of

the

while

ended

decrease

a

4%

from

week

four

for

April

7%

3,
re¬

was

For the period *Jan. 1 to

April 3, 1954,

a

decline of 2% Was

registered under that of the 1953
period.
*

Wednesday of last week

reports, assembled an estimated 124,week, compared with 116,530 (revised) in the pre¬
vious week.
A year ago the weekly production was
135,754.
Last week, the agency reported there were
21,590 trucks made
in this country, as against
22,061 (revised) in the previous week
and 29,178 in the like 1953 week.

perceptibly from the level of the preceding week but con¬
tinued to the markedly below a year ago as a result of the shift

"Ward's" estimated Canadian plants turned out
8,781 cars and
2,149 trucks last week, against 6,222 cars and 1,685 trucks in the
preceding week and 8,598 cars and 3,252 trucks in the comparable

;

Comparison

period

begins

Jan. 4-9. week in 1954 and

In Pre-Easter Buying

period ended

retail¬

the fact th&t the similar week

1953

5-10

6,223,200 bales.

Retail sales in the

Reports," states.

in

in

by

for the bet¬

reason

were

at 29,800

26

showing,

was

by about 25%,

ago

estimates

The main

ers.

1954,

ago.

Spot cotton prices moved unevenly in
closed with a slight net loss for the week.

above

The industry, "Ward's"

from

The increase in

First Decline in Nine Weeks

but held under the level of 164,932 units produced in

week last year, "Ward's Automotive

Fur departments bene¬

fited

sulted in

of March

Ago

levels of

below

year ago.

customers

34, and commercial service dipped to 14 from 16. Contrary to
these declines, manufacturing and wholesaling failures increased

Cocoa

and power industry for the week ended Saturday, April 10, 1954,
was estimated at 8,396,000,000 kwh., according to the Edison Elec¬
tric Institute.

*

succumbed

the

Retail mortality fell to 127 from 146, construction to 27 from

of

The amount of electric energy distributed by the electric light

■

businesses

in

as

of $100,000, the same number as in the previous week.

excess

tons from the February total, according to the Institute.

4.9%

numerous

as

68.0% (actual)

the

for

ceding week but continued to be
markedly

spurted but continued to be some¬

Daily average sales dropped to 48,500,000 bushels, from 60,600,000 the week before, and compared with 42,700,00(Hn the like

beginning April 12, 1954, equivalent to
1,604,000 tons of ingots and steel for castings, as against 1,622,000

duction

week

creased from the level of the pre¬

were considerably higher than last year when 121 occurred. Small
failures, those involving liabilities under $5,000, edged up to 38

a

week

capacity

was

last

weakness in corn reflected increased receipts and easiness in the
cash market.
The volume of trading in grain and soybean futures
on the Chicago Board of Trade declined last week.
% v

capacity for the entire industry will be at an average of 67.3% of

now

of

Thursday, April 15, 1954

.

Housefurnishings purchases

the

that

operating rate of steel companies having 96.1% of the steelmaking

week

.

ago, but casualties of this size

a

^

ingot

similar

and the toll of 184 in 1952.
Compared with the pre-war
level, mortality was off 17% from the 295 recorded in 1939.
Among failures with liabilities of $5,000 or more, there was

Scheduled to Show

production last week lost the 1-point gairt lit
achieved in the preceding week and slipped back to* 68% of £%?
pacity, says "Steel," the weekly magazine of metalworking;
There's a diversity of opinion, due to varying conditionsacross the country.
Some people think it's bound to sag some
more, while others think there will be some pickup, states this
Steel

in the

140

i* year

Wholesale

Steel Output

of

*

week in

with

with

the

the Jan.

1953.

S. Wade Marr Adds
(Special

to

The

Financial

Chronicle)

higher.

552

cars

last

,

1953 week.

Business Failures Ease Further the Past Week
Commercial and industrial failures declined
mildly to 246
in the week ended April 8 from 267 in the
preceding week, Dun




rose

in

Easter

dates.

At

this

time

last

year,

Easter buying was at

its peak.
The
creased

ELIZABETH

CITY,

sociated with S. Wade

lessening
sales

in

of

the excise tax

some

of

the

items

on

on

April
which

1 resulted
the

tax

The total dollar volume of retail trade in the week

in in¬

had

was

C.

line

—

as¬

Marr, Caro¬

Building.

been

esti¬

mated by Dufi & Bradstreet, Inc., to be from 10 to 6% below the
level of a year ago.
Regional estimates varied from the compar¬
able 1953 levels by the

N.

Thomas C. Parker has become

following percentages: New England —32
Nto —8, East and South —8 to —4; Midwest and Southwest —11
to —7: Southwest —9 to —5; Pacific Coast 0 to —6.
Despite unseasonable weather last week, apparel sales in¬

Now With J*rv ^son & Co.
(Special to

SAN

Otho

The

Financial

FRANC*0 ~C,

O.

Sheffir'7

connected with J,
pany,

Russ

Calif.

has

—

become

i^on & Com¬

Bu*v>«

i

Chronicle)

Volume 179

Number 5316

..

The Commercial and Financial Chronicle

.

(1707)

The

Indications of

following statistical tabulations,

latest week
;

Business
AMERICAN

IRON

STEEL

ingots and castings

Crude

PETROLEUM

oil

and

42 gallons
Crude

•Apr. 19

Residual fuel

Week

Ago

§1,604,000

67.6

Distillate

fuel

♦1,622,000

Residual

fuel

1,613,000

6,486,250

3

§6,761,000

3

22,858,000

3
3

2,233,000'
10,058,000

Apr.

3

(bbls.)

ASSOCIATION
Revenue

OF

6,432,900

6,341,250

6,951,000

6,965,000

*23,607,000
*2,424,000
*10,185,000

23,874,000

22,033,000

2,989,000

2,479,000

10,617,000

10,102,000

8,025,000

8,371,000

8,195,000

*178,626,000

179,203,000

ENGINEERING
NEWS-RECORD:

Total

U.

S.

Private

3

17,447,000

*17,800.000

19,905,000

3

59,511,000
43,718,000 '■■■

*60,654,000

3

'[•■'I,

cars)

Total

•

•

4."'

68,194,000

44,093,0Q0

.

CONSTRUCTION

—

Additions

39,998,000

590,567

704,517

585,261

660,451

SALES

EDISON

output

FAILURES

(in

000

$195,113,000

184,370,000

198,852,000

166,121,000

(COMMERCIAL

130,689,000

79,420,000

93,634,000

113,699,000

69,319,000

63,088,000

16,990,000

10,101,000

30,546,000

24,052,000

5,860,000

6,670,000

6,255,000

465,000

474,000

406,000

Pig iron

(per

Scrap steel (per

3- "

103

100

85

118

$■* 8,396,000

8,463,000

8,519,000

METAL PRICES

Electrolytic

(E.

&

,8,001,000

246

267

229

140

Apr.

6

4.634c

4.634c

4.634c

$56.59

$56.59

$56.59

-Apr.

6

$24.50

$24.33

$23.50

$43.92

Lead

(New York)
(St. Louis)

Zinc

(East

St.

at—

—

at.

;

—

29.475c

29.050c

28.925C

34.300c

94.500c

95.500c

,13.750c

87.250c

13.500c

12.500c

13.300c

12.300c
9.250c

11.000c

OF

Apr. 13

Aa

100.01

93.76

110.88

110.52

106.21

mated

116.02

116.02

109.42

113.12

Railroad
Public

Group

Industrials

•

_

Utilities

.—

112.56

108.16

110.15

105.34

104.14

102.13

——Apr. 13
—Apr. 13
Apr. 13

Group

—

4—

-

Group

MOODY'S BOND YIELD DAILY AVERAGES:
J Vm
U. S. Government Bonds———————

109.79

109.60

104.31

Other

110.70

110.88

105.69

112.37

112.37

108.70

110.88
'

112.37

-

2.49

.v-

:

2.45

corporate

Feb.

Group

NATIONAL

INDEX

PAPERBOARD

3.38

Service

Percentage

Unfilled orders

3.03

——_—

3.16

3.43

3.50

3.62

Month

3.49

All items

3.41

3.04

3.19

434.3

3.25

3.13

3.12

3.04

-

3.04

437.6

'

•I('*

AVERAGE

=

100

415.3

222,161

225,519

239,337

304,917

364,392

223,579

89

90

88

424,943

355,230

401,043

567,535

108.35

DEALERS

EXCHANGE

—

AND

SPECIALISTS

SECURITIES

ON

EXCHANGE

N.

Y.

*108.12

108.00

107.06

Odd-lot sales by dealers (customers' purchases) t—
Number of shares
Dollar

..

■

short

other

Dollar

645,030

879,588

$29,757,573

$39,530,066

sales

903,256

656,574

8,213

7,441

6,742

649,133

896,726

—Mar. 27

$38,079,679

$38,099,914

$27,259,465

828,409
$32,488,279

—-—-—-Mar, 27

—

322,810

305,420

214,450

Mar. 27

Round-lot purchases
Number of shares

r

322,810

305~420

214" 450

258,710

251,110

219,670

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR

ACCOUNT

OF

MEMBERS

Short sales

■"%

TRANSACTIONS

FOR

Other

:® Li

i

on

——

332,590
9,567,570

Durable

9,133,630

9,900,160

ACCOUNT

OF

All

All

-

Other

Vi

*

177,360

194,920

756,810

737,790

787,890

934,170

932,710

953,370

291,230

291,210

227,820

initiated off the

12,900

9,400

18,700

254,750

233,320

280,320

264,150

252,020

All

Mar. 20

12,000

393,193

368,091

342,375

351,025

39,040

42,240

41,390

Mar. 20

372,764

384,070

415,004

425,460

107.5

120.3

115.8

112.5

678,827

766,090

1,824,034
11,488,551

1,736,445
12,083,258

6,892,984

94,559

113,081
1,401,712
19,652,000

1,095,971
30,303,000

1,460,699

^Jar. 20
2°
Mar.

214,330

229,000

255,010

246,650

1,391,187

1,384,324

1,355,180

1,457,915

Mar- 20

=

—

U.

S.

1,605,517

1,613,324

1,610,190

DEPT.

1,602,271

1,446,745

1,593,705

1

1,704,565

1,863,106
109,914

6

110.9

110.9

110.6

109.6

Apr.

6

100.4

99.9

99.0

98.6

Apr.

6

104.6

105.0

104.6

103.6

.Apr.

6

93.9

93.8

91,6

88.6

Apr.

6

114.6

114.4

114.4

113.2

§Based on new
♦Revised figure,
illncludes 568,000 barrels of foreign crude runs.
•f Jan. 1, 1954, as against the Jan. 1, 1953 basis of 117.547,470 tons.
tNUmber of orders not reported since introduction of Monthly Investment Plan




•106.0

110.7

138.9

(1947-49

Average

of employees

•144.0

148.4

13,619,000
8,020,000

5,599,000

=

100)

—

in manufac¬

•

-

—

goods
ISSUES IN

GREAT

16,177,000 aV*16,488,000
9,413,000
*9,584,000
6,764,000
*6,904,000

h

1

*

'X V +»"

>■

16,884,000
9,880,000
7,004,000

BRITAIN-

BANK LTD.—Month of March—

£43,432,000

£93,937,000

£27,783,000

'

NONFARM

REAL

FEDERAL

ESTATE

FORECLOSURES—

ANCE

SAVINGS

AND

LOAN

CORPORATION—Month

of

INSUR¬

Dec

1,971

annual

capacity of 124,330,410 tons

as

V

1,779

1,585

$275,000,000

$275,000,000

$275,000,000

270,235,368

274,781,539

264,484,781

77,086

77,011

51,275

$274,858,550

$264,536,057

S. GOVT. STATUTORY DEBT LIMITATION
—As of March 31 (000's omitted):
Total
at

face
any

amount

that

may

be

outstanding

time-

Outstanding—
public debt—

Guaranteed

OF

Apr.

foods—

♦13,107,000
♦7,651,000
♦5,456,000

Avge.=100)—

obligations

not

owned

by

the

Treasury

foods—

"

7,493,000
5,328,000
103.7

(1947-49

Total gross

100):

commodities other than farm and

12,821,000
'

—

-

U.

1,(357,253

„

Meats
All

119.3

113.7
108.7

436,965

-———Mar. 20

—

SERIES

MIDLAND

367,795

395,917

account of members—

products

Processed

123.7

19,656,000

(production workers)

goods

NEW CAPITAL

69,170

356,877

Mar- 20

——

NEW

Indexes

Durable

314,230

Mar. 20

-

commodities—

Farm

129.1

684,367

turing industries—manufacturing

302,230
1

Commodity Group—
.

130.5

108.0

COM¬

All

floor—
»-

il

(1947-49

OF

—^

.

t

sales

—

DEPT.

manufacturing

Nondurable

267,420

Total sales

LABOR

104.6

120.2

316,760

Mar- 20

PRICES,

—

goods

Estimated number

165,480

766,890

Short sales

.

925,920

929,280

-h—-—

Total purchases

WHOLESALE

162,390

876,550

-Mar. 20

sales

Other

All

942,970

the floor—
.

Total round-lot transactions for
4

113.5

104.9

<

113.9

manufacturing

Payroll
972,830

Mar. 20

——

manufacturing

Employment Indexes

MEM-

—Mar. 20

Total sales

117.2

108.0
—

Nondurable goods

sales

transactions

125.7
107.2

AND PAYROLLS—U. S. DEPT.
LABOR—REVISED SERIES—Month of

411,270

Mar. 20

Total purchases

-Ill-

active as of Feb. 27

8,722,360

—.—

Short sales

n

spindles

9,476,480

Total sales
Other

123.3

126.2
107.2

LINTERS

328,220
9,148,260

*

.

.

AND

320,360

Short sales
-

106.1

117.3

1

9,257,900

Mar. 20

sales

Other transactions initiated

,

107.1

124.1

care

8,937,540

—

purchases

oil

care

Mar. 20

.

Short sales ——————————Mar. 20

f'' Total

116.6
121.5

129.4

Mar. 20

.—4-*.——

Total sales

11'

107.3

118.8

104.7

—————Mar. 20

—

of specialists in stocks in which registered—
purchases
.-Mar. 20

Other

113.5
127.8

January:

Transactions
Total

110.7

115.9

EMPLOYMENT

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

'

fuel

operation

Stocks Feb, 27——

OF

r-i,,'Total sales
ROUND-LOT

and

consuming establishments as of Feb. 27
public storage as of Feb. 27—
Linters—Consumed month of February—

(SHARES):

other' sales
•

107.7

109.7

107.5

In

Total Round-lot sales—
■

110.2

118.9

In

Cotton

117.6

110.8

114.0

MERCE—RUNNING BALES:
Lint—Consumed months of February

308,160

111.1

121.2

.

109.7

electricity

fuels

COTTON

.

111.5
'

127.9

and

Personal

281,926

—Mar. 27

by dealers—

113.4

113.1
112.6

10.9.0

Reading and recreation

281,920

Mar. 27

-•

sales

r

108.0

835,151

7,855
900,401

Short sales
Other

904,939

by dealers—

Number of shares—Total sales

121.3

vegetables

Other goods and services—

Mar. 27

value

Round-lot

..

849,612

$37,580,870

.—

"

.

876,370

$38,343,567

Mar. 27

———-

products

,

Medical

Mar. 27

Mar. 27

sales

bakery

Apparel

sales) t—

sales

Customers'

and

Household

—Mar. 27

Customers'

and

Transportation

value

Odd-lot purchases by dealers (customers'
Number of shares—Total sales

115.2

112.6

112.0

Housefurnishings

COMMISSION:

1,726

—

Solid

STOCK

2,678

1,705

115.0

.

home

Housing
Gas

6,522
2,118

2,893

February:

at

Rent

3,890

2,083'

—

Other foods at home

95

3

9

100

=

'

Fruits

251,974

3

Apr.

-Apr.

1947-49

1,404

'

2,550
1,723

—

5,208
-

v

6,681 '//
"■**"

2,054

Meats, poultry and fish
products

298,123

3

.—Apr.

—

INDEX

^

6,327

—

Cereals

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

1,587
4,278

Dairy

3

of period

PRICE

of

Food

3.24

•

427.3

CONSUMER

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

8,480

5,495

credit

Food

3.18

—Apr.

.

—i—

at end

18,982

10,084

credit

3.27

3.15

Apr.

(tons)

$25,504

21,444

1,570

term

'

3.00

3.47

ASSOCIATION:

__——

$28,125

21,151

RE¬

SERIES—Esti¬

credit

3.20

3.12

Apr. 13

(tons)

(tons)
of activity

7,943

4,289

2.85

Apr. 13

Orders received

Production

9,543

—

2.85

Apr. 13

Group
Group

COMMODITY

6

goods

3.14

Apr. 13

Utilities

MOODY'S

65

I—III

consumer

3.12

3.14

Public

13

10

28:

3.11

2.99

Railroad

57

12

5,377

FEDERAL

intermediate

credit-

consumer

3.47

Industrials

62

45

BRADSTREET,

REVISED

Personal loans

-2.95

140

33

53

Single payment loans
Charge accounts

2.50

115

67

Repair and modeernization loans

■

111

IN THE

Instalment credit

Noninstalment

Apr. 13
Apr. 13

—

34

62

14

Automobile

108.52

Total

34

8,533

(NEW)

THE

2.85

Average

41

$27,478

OF

and

104.66

23

OUTSTANDING—BOARD

SYSTEM

110.34

,

159

133

26

;

in millions as of

104.66

359

126

156

9,915

100.52

110.52

339

47

12

116.02

113.31

8

798

'

34

155

CREDIT

Apr. 13

-

7

697

"

.

135

public

short

'

363

water

111.07

Apr. 13

Baa

48

238

75

GOVERNORS

SERVE

34

45
228

161

100.09

.

108
320

27

34

•

;

INCORPORATIONS

CONSUMER

89

300

7

;

STATES—.DUN &
INC.—Month of February

12.800c

10.250c

19

773

„

UNITED

13.250c

13.550c
10.250c

———Apr. 13
Apr. 13

.

Aaa

other

BUSINESS

111.000c

Apr.

———

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
corporate

and

29.800c

—Apr.

...

at

29.700c

Apr.

—

at

Louis)

29.700c

Apr.

at.

20

30

50

i.

Industrial

All

29.700c

26

private

construction

Sewer

10

26

255

Miscellaneous public service
enterprises
Conservation and development

Apr.
Apr.

JNew York)

telegraph

Military facilities
Highways

QUOTATIONS):

16

33

Other nonresidential
building

$55.26

41
38

96

Educational

4.376c

6

33

49

65

338

1

Hospital and institutional

Domestic refinery at

Average

;

118

21

building
Nonresidential building

copper—

Export refinery
Straits tin

other

141

-fi

27

Other public utilities

All

114

73
85

16

Residential

Apr.

M. J.

158

71

40

.

—-

&

ton)

198

38

Telephone and

8

1

:

Railroad
<

.Apr.

gross

177

74

142

Miscellaneous

Public

ton)

gross

430

85

building-

—

—

Farm construction
Public utilities

311,000

.Apr. 10
DUN

19

476

>

Hospital and institutional

7,131,000

3

Apr.

100

—

22

470

Social and recreational

"

3

Apr.

INDUSTRIAL)

21

Educational

INDEX—FEDERAL RESERVE

AND

770

'64

156

Religious

101,479,000

129,913,000

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

.

$245,541,000

105,861,000

BRADSTREET, INC

Lead

$329,541,000

—Apr.

kwh.)

863

680

68

Warehouses, office and loft buildingsStores, restaurants, and garages
1

ELECTRIC INSTITUTE:

Electric

1,729

766

79,273

(in millions):

alterations

Other nonresidential

Apr.

=

$2,527

1,638

765

73,166

OF

Commercial

.Apr.

AVERAGE

$2,317

854

DEPT.

203,043

$2,538
1,765

S.

Industrial

588,724

$314,283,000

$598,695
316,378

♦248,324
♦76,664

172

601,426

580,366

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
STORE

♦283,330

Nonresidential building (nonfarm)

S. BUREAU OF MINES):

SYSTEM—1947-49

♦$608,318

281,269
237,378

"

.

Nonhousekeeping

s

i'—Apr.
..

591,813

IIIIII

and

3

Apr.

DEPARTMENT

Ago

S.

Jan.

construction

599,302

.Apr.

municipal

(U.

U.

of

building (nonfarmi
dwelling units

New

ENGINEERING

construction

OUTPUT

Year

Month

Residential

59,428,000

46,065,000

new

3

Federal
COAL

Previous

Private construction

.Apr.

construction-

and

THE

.

LABOR—Month of March

18,379,000

Apr.;

Public construction
State

of that date:

Month

LABOR)—Month

CONSTRUCTION—U.

.Apr.
CIVIL

either for the

are as

VALUA¬

residential

BUILDING

160,899,000

at

of

OF

OF

Additions, alterations, etc

8,593,000

179,674,000

.Apr.

at-

(number

AREAS

New nonresidential

*

AMERICAN RAILROADS:

freight loaded

URBAN

building construction

New

6,452,150
7,000,000

.Apr.

(bbls.)

of quotations,

cases

CONSTRUCTION PERMIT
IN

(U. S. DEPT.

2,228,000

All

3

.Apr.

(bbls.)..

(bbls.)

oil

BUILDING

t

.Apr.
.Apr.

at

oil

in

or,

are

/

Latest

98.9

3

(bbls.)

'

(000's omitted):

output—daily average

.

Kerosene

;

'

Ago

*68.0

.Apr.

oil output

'

•

Year

Apr.

output

\

•

•

that date,

INSTITUTE:

(bbls.)
(bbls.)

Kerosene output
Distillate fuel oil

Month

§67.3

.Apr. 19

stills—daily average (bbls.)

output

Previous

on

TION

each)
to

runs

Gasoline

month ended

Week

INSTITUTE:

(net tons)

condensate

Dates shown in first column

*7

or

Latest

AND

production and other figures for the

cover

,

steel operations (percent of
capacity)..
Equivalent to—

AMERICAN

month available.

'

1

week

Indicated

Steel

or

47

Total gross public debt and guaranteed

obligations

—

•

pj

$270,312,455

——

■

Deduct—other

outstanding public debt obli¬
gations not subject to debt limitation
Grand

Balance
under

total

555,952

558,701

$269,756,502

outstanding

face amount of obligations,
above authority

•

$274,299,848

$263,928,542

5,243,497

700,151

11,071,457

-

607,515

issuable

m

The Commercial and Financial Chronicle

(1708)

The main

Continued from first page

The tax structure in

•things or to improve the way tney
are
doing things at present. We
realize that some of the present

of the Code were
adopted to raise money quickly
during periods of heavy spending
luring
„
for war purposes.
But we have
wound
up
with an overall tax
system which has many defects,
provisions

that

fact

The

something,

not

conference

news

which

proposed,
For years Congressional comxnittees, with Democratic Chair-

Party has just suddenly

majority

Democratic

and

xnen

membership,

recommended

have

more

attrac-

^V^hPArfn?Z°CHtCSemWa°v; Thftax'"revision'bill1"wU

h

opnenl
geneial

The
The

before

nvhnncui

oc,

which will net

extension

billion

this year

or

n

with a net loss
from individual taxes of $585 milp
both sides of the aisle in lion and a net increase in col-

on

nnrPtinn

,

There

three

are

possible drags on the

main

business in going

ahead with new
-*md better things under the free

m

|d*;d

-enterprise system which has made

m,.

;ihis country great.

points

?^t

•as

££*&??

of the inequities to in-

many

-dividuals and barriers to economic

..growth

possibly

we

as

That

can.

The^ 'cnripTtfTh
^

continue

and
make further recommendations on
will

we

to

study

P^pnninc^iiVwhn^n?

^a
nrecent is
fnr,t national \y
Aa+Lnoi tax
Ming

^
_a
and stij

_

a

verv

messv

structure.

manv

kelp

wm

we

woAina

toward further cuts in total

^ven

that

so

further

mend that
m

taxe!

And when we have cut

required.

spending

cut taxes

we can

will then recom-

we

tlieTe tTx

cuts be made

rates, because it is in rates that

"the

principal increases have been
15 years.

jmade in the past

n

The Whole Tax Program
Thp ffpnprni
*

° ! h!
Plagued by

rpvicinn

hiii

ic

nniv

^

lh

unjust and

"
!I"
un-

In

his MaiTh

15

tax

-astrabons
-whole
we

1ake
omion

T,

effective

thic vpfr
year.

the
tne

Third-and

all-

it will

grow
r;

most

help

important

our

it will help

It

'

•

j

a

cuts

to

onnnspH

win

cuts

$7 4

tax

of

mis

n

is

,
x

•

4.

J

A

As the President pointed Qut at




January and February of this
em¬

and

Februarv

any
diiy

in

vvhole historv of this countrv
ceDt

;n

iast

VGar

there

unwisely.

jarmarv

Tn

ex-

Fehrwarv

and

Tonnarv

nf

in

and

Fphrnarv

of

Tn Janufry

million

of

iq^

fin 8 million neonle

were

nloved

nnp

em-

iq^

Ibis

of

vpar

nnr

imrv

e

The dollars that are saved

work.

^

Some economic indicators show

in government spending reduces downward trends in comparison
"lcJue ,.qu c?ry 9

-iu

we

to just

,

.

history, ine index ot mdusproduction

civUia£
little,

as

employment is
we have said;

_

..

,

.

trial

,

ing' we must return to the Peo" gross national
ln
cuts—as we are nowj about 1%.

proposed

restorati^

doing-the billions of dollars of

downZ
the
and

,.

,

.

,

production is down
.

Yet construction

is

running

tax

n

bill

t fl

t

bracket rate

making tanks and guns must now

f 20%

make waiihmg machines and auto-

^bll^aceA gieat transitlon must
A

HVinS f°r

ui

jc-kiiutiici

uxii

hud

An°tte pr°visi°n °f this biU
flexible changes for

allows

well

as

600,000

again"

Here
ucic agdin the itutjwsc
mc purpose

Ys

to omuiu stim-

life of the Property; will not be
increased and only the same
Some f'500'000 People will ben- increased and only the same total
total
&
«»
sum will be given as a tax detired
pensions

p^cts

qavin«

nf

of

hlavy

at

duction, but less restrictive rules

this

pnts

time

than

to

thoSG

-

industry

any

(u,,ir

their

get

any

further

DrODOSGd.

in

tax
this

onDosed

inc!eaPseTnU perso^f e!"

emptions, for two simple reasons:
'

,

First,

.

we

We sh°U}d 1?°k at an arfa

.

,

,

cannot stand any fur-

de')£ management and monetary

poiicy-

JtG™lc^nSffvVfn?mnnP-

*s resP°nsibility for mo
tary P°licy—reduced reserve reRuirements of member banks sub-

sta«tialIy asfea''lyas
June to
make sure that there would be-

no bar to the proper volume of
bank credit necessary to a grow¬

would cost

nearly $8

ket,
for

Secondly, it would entirely remillions

the tax

rolls.

economy.
has

The Federal Re-

short-term^

purchased

government securities in the mar¬

billion.

move

economy,

serve

I
$1,000

of gov-

ernment action very close to us

ther loss of ieveen9fnAAn iajieas9 ing
revenue.
er ^oss
1 increase ing
to

..

"nth'» man! 5* Treasury-the area of flexible-

narticufarlv

w

to

the

Administration is opposed

This

.

,

already fdone-

buv

to

Amerieans

corporations.

th?,n $60° a year*
on

™tmpnf

more

bene£it by a chanSe which aI1°w ulate' employment, plant expanulate' employment, plaia chlld to be c011tinued as a de" sion and modernization,
pendent even if he earns more
The total deduction over the

persons

* to^imutete

^

numbers of available workers can

as

Some !.300,000 taxpayers will
iuAHajtio w*n
benefit by a change which allow

on the ^ q£

real

bftn5nmpr?

...

This
wiU
A few sPecific provisions will depreciation
show how millions of various benefit
rV
y*
9,600,000 individuals tyPes of Americans will be ben- farmers, small businessmen, etc.-

SPecific proposals.

To taye real P^Pejityn

buying alone. Large tax the economy.
cuts to millions of individuals just
There are many things that the
to buy consumer goods is n0t government has already done;
enough. Millions of people in this things recommended which arewdl help the expansion of husi- country earn their living making now before the Congress; and
9,9SS
he makmg of more jobs, heavy things—big lathes, genera- things which the Administration.
^e ony need to remember that torg^ heavy steel and | machinery has proposed either for the fu!e ave^.age .cost 9f,. provld9lg that consumers do not buy. Such ture or for action by executive
P 9 a9d equiPraent £. 99^
things are purchased by investors, agencies, all of which have and
5?ir/nn)friTf is certainly ?8,0,?0 and Our tax program not only returns will help strengthen our economy.,
-1S iWPein in the in- cj,,.
$10,000.
It
^niiarQ
f^
r

a11 businesses to modernize, and ment and wages at "the American
80 help inhc creation of lix/imu and high standards,
the nna hpHot- more f^r
Kp+fGr

everyone3 ^

^the government

The fact „

consumer

incentive to provide the money to
create
more
and more jobs is
to stimulated so that our increasing

businesses

and do ™mething abou o't-

things Jthat the government does
prosperity in —°r does not do—that have a

of

economy

new

of taxpayers from
The President

said

to
a

increase

bank reserves,,
period.
The:

considerable

rate at which bankers can borrow
from

the

reduced in

Federal

Reserve

was

February.

bis broacast that "the good
Treasury debt management also
American doesn't ask for favored bas been "a positive factor,! and
medical expenses.
will encourage modernization and position or treatment. . . . Every government interest rates ' have
Some 1,600,000 people will ben- rebuilding of paore efficient plant real American is Pr0^d t° carry fanen to the lowest point in many
efit from allowing more liberal equipment
and the creation of nis share of the burden. ... I years. Last July the Treasury
deduction of interest under in- more jobs for the production of Slr9ply don t believe for one sec- had to pay 2%% for a 8-month
Some 8,500,000 people will ben-

efit

from

larger

deductions

for soil conservation

Admin
Admm-

which,, when

excise

some
wpre

wp

b^oadcast

effort.

program

include

-KrLiph

T

entire

tax

of
ot

call your

me

thp

for

than at present for writing off the

investment in machinery

or

^

expend

Some 6^2 million of the 47 milborne fii' mi'llinn nf thp 47 mil

lion

taxpayers will

benefit from

the partial relief from double taxation of dividends.
o

a

In February we paid the

cnonnn

are

modernization
pmiinmpni

Th

of

old

plant

ph„nJ^

.

T

and
qT

,

l

individuals, as bill are quite limited compared

As 800'000 corporations/will to depreciation treatment in coun-

benefit from more flexible
nvni mure ne;
visions for depreciation.

be made by reducing the rates.

pro-

tries such

as

Canada, Great Brit-

ain> Sweden, and Germany.

down to 1%
T

'

V

lowances tor depreciation in this

,

^year^ And^oJrTs^onel

ci^ depreciation allowances with share of the cost of his govern- year mone;y borrowing was at
great advantaSe toequipment and tion in taxes is a further reduc- to 2^.% last June- bills cost close
encourage in- ment.
When justified it should 1%%> Ninety-day now thev
vestment in new

•

aaa

v

plant

a

in

evervone
have
have

can
can

januarv

^rt-but verT'Tual'part-S stallment purdhase ddnt-cts.
better and cheaper things for liv- ondtoat anyone• P^ged^ hve ,c
programaXasPtheIpi^si^1nt said efhTom^ore HbSa? aTlolance Other countries have used spe- else to pay his own fair and just

^The^ornerstone"
the corneistone

work
work

there were more people
ployed in mucinJd than in
cu HI America
Liicui HI

or

over man^ many terest of all Americans that the

years.

e£ited b

tomflnvTn^m,am?«hn?Itb? tTv
ineaualities of the tax

ths

-ode

j

J?

'

,

wStSh fair hardships

tax

ft 1S a re"
as I36611
years as

mi,rnnc

® 1

,
been

our

way\

«

_wnftcJ??r?nl 0I!?
JJ
a°

wheels of American ingenuity and

nf

to
to

duction of people from the gov- million. I repeat this.Tannarv nnrS
Except for
ernment payroll
buvine less
iq^

ab0ut the ®ederal revisio11 bill:

With

+hnt

•wf'J nSt

thrt

to see

ThiTnieaTs elZT re!

This is the same general method
our naFirst' " is designed as a reform of relief adopted in Canada in
M.onal income *oing into Federal
tax structure and not a tax 1949, but goes only half as far
^vernmenT it Is "only sensible [Ruction bill. We must keep this
in the case of the small
that the tax laws proviae tne tew- *
^ear
iL thid hill pete: thp first $100 of divipossible hardships for indi^fsf
^ aPnd incomp romnletelv exempt
-Vidual taxpayers.
It is also imthat * 'S,
dern+d incomer compieteiy exempt
portant that the tax laws include
J^a^ some,,peqple
It is one bf the provisions Which
fewest

difficulties

his

This Administration

b,lU
a Partial restoration government money saved, so that ahead of 1953. Business plant and
ot
treatment originally ac- it can then be put to making new equipment plans for 1954 are a
i dividemis in .1913 and kept jobs for the people who previ- very high level. Personal income
.bJ»l}" running a very little higher
uunng mat ously received their income from is
i^i.TihTTI government spending.
than a year ago. And the general
thT fir!
People who have been making P"of level has been exceptionally
fa* J^'tn was
.riV
'sit things for the government for stable.
ent

is obvious when we stop to think

"the

discount

way.

contained
the preT
must, in this period of
Some people fearing further
will^ in effect exempt transition, now get jobs making downward trends, ask when the
dividends from one-half of The things for living. Those who were government is going to get in

the
.

tZ lies for fTderal'taxes
LiiT ^ger proport^n ^

I

who is

man

year,

The °nly way the government 61

56%

that

relief

mc

economy

our

upon

-

of

narbal

aSinst

importance of

terrific

chnwed

,]lrvpv

method

prosperity.
structure

a

employment. But let

by cuts in government

About 70% of all we spend is
for security. We have made some
savings in this area and we will
make more, but no one wants to
endanger our security by cutting

that

job is in serious trouble.

a

not

any

that

be

can

mean

attention to these plain facts:

spending.

few wealthy individuals

a

-J

The

i i

stockholders' "is "not limited

lections from corporate income
With
most
sincere conviction, taxation of $570 million, reflect3 say that a modernization of our ing both the continuation of the
lax structure, as provided in part 52% rate and revision 'measures.
by the present tax revision bill, Additional items adopted in the
is something
which this nation House increase the revenue loss
must have for continued growth from individual income taxes by

tax

do

in

1™ wlthout serl0usly dislocating the
J1Tha^fsi'OOO^yearldReUefto economy- cut -government spendless than $5,UUU a year,
rte e
As

Loth the House and the Senate.

and

I

pick-up

doesn't

not realize

out of

to incentive; ana
(2) Reduction of excessively
high taxation as rapidly as it is

Three-R)urt s

c®lv.e dlv.ldends'

almost

sage (page M28),

political reasons to the contraryLave over the years been supsported

maoyrrf

•

proposal of
Meet
ef
^tc
Most of its makes the bill a "giveaway to
ave
called it.
major provisions have been de- business" as some have
The cost of the revision bill was
veloped after long objective study
The cost of the revisio
siid—in the absence of compelling provided for in the Budget Mesnot an arbitrary
ibis Administration.

js

This

are

be misled
really

can

business

and how much

do

has two ob-

program

We

bad

Pinion mis year, 01 aimo&j an individuals who get dividends work for the man who used to eet with thi«? same tfme last vear
enough to pay for the entire cost
arn iess than
$10 000 a vear
A S
Zt Kid vSi with this same time last year,
nf the revision hill
This hardlv eain
e8sT lba9 i1"'"""
those dollars. So that big reduc- which was the highest year m
of the revision bill This hardly recent United Sta'tes steei Corcannot 'be
made
quickly our historv
The index of indus

other words,

in

/vKii

$12
$1.^

bill
Din

revision
revision

tax
tax

you,

how

.

in

,

rate—an

-v

row

is

are

items needing prompt con-

as

of our

status

material, which in turn means February of this year had more
billis toeconizationof tne dor? American all the citizens. the in- that the people who produced that people employed than any JanDin is tne continuation or the cor
terests of businesses is in
material
temporarily out of
and FPhrnarv in
hi^tnrv
poration income tax at the 52%
A sreat manv Americans reebruaryin ourhistory.

morellexible

Mon

about

.

•

dends and more tiexiPie denreciaand
ciepreciarf

turning down.

U) Revision to reduce hard- jg concerned
ships on individuals and barriers who wants
wh
wants

JrTifscusTngTpecTwtodaT, Mansion. eC°n°my t0 fmanCe "S
imfTritTlnRCongrSrilsZreecome wM TLT°result hv reductions" rf investors to ^hich, willthe growth
Taxt reIiff invest
encourage
majority
Congress, also recom- will also result in reductions or
™eZTbteTtoxaatLSPlfS that ato'chcdTo twT' axTevision aAnd develo.Pm.ent o£ old and new
in

tax

expenses

in

proposed

the

is

what

made.

i^ives'J

T8' VP iS the T"?-W3y

we

Just

Administration Tax Philosophy

justified

that

economy at the moment?
There
is frequent discussion about un-

IV

Our

from

this tax revision bill,

of people can earn high wages by
producing more and oetter goous
at less cost,

last

„

that the Republican

.incidentally,

it

make

different

so

jobs at which millions employment and how things

sure more

seriously stifled.
The features in this tax revision

—

system

tax

our

is

revision

coun-

is

initiative

bill

needs

this

week tive for the man who saves money
this is the largest total tax cut to invest, or more attractive for
made in any year of our history, the businessman to replace his
The spending program of this present inefficient machinery, are
Administration's 1955 budget is the sort of things which can help
$12 billion less than called for by this economy keep growing. Let's
the 1954 budget we found when look ... two of these controversial
at
we arrived.
And it is $$8.5 bil- so-called "business" povisions for
lion less than was actually spent a moment.
in fiscal 1953.
The recommendation to reduce
Without
these
savings, there double taxation of dividend incould have been no tax relief for come will encourage the investment of savings so that business
anyone.
Because of tnese sav
ings, tax cuts of more than -$t can expand and create more jobs,
biRion have been possible.
Largely because of tax restricOn Jan. 1 taxes were cut by $o tions, the trend in recent years
billion oy the reduction in indi- has been sharply away from
vidual income taxes and the ex- eqUity financing towards borrow-

his

business to try new

in

add to our naand preparedness
as
modernization of the whole
industrial plant in America. There
is nothing that can make more

reached the point where

try has

Tax Revision Measure
those

Nothing can
tional strength

I said, is

as

provide more jobs and better living.

A Defense of the Administration's

for

purpose,

the economy expand and

to help

Thursday, April 15, 1954

...

n.1® 1

.

.J" »be current ecunonuc en-

vironment the Treasury has

Current Outlook

pur-

posely done its {inancing in a way

It has been suggested that the that would not interfere with the
current

quires

economic

some

type

situation

of

tax

re-

action

availability

of long-term iilvestment funds to corporations,, state

Number 5316

Volume 179

local

and

The Commercial and Financial Chronicle

...

governments, ^suad

for
Vve

is

It

the

citizens

of

free

our

(1709)

approximately the

the end

same as

•4
'
• •-«
who, through their initi¬ of 1952.
> vj
"Except for open and closedwant to be
and ative and ingenuity, must make
end investment trusts, the turn¬
equipment, home building, and sure that we keep moving ahead
other construction all have ample: with higher employment, higher over of these institutional hold¬
available
funds.
The fact
that pay, and better living for all. The ings was subsequently lower than

home owners.
sure that plant

mortgages

to

modern

thus far this year is

construction

high demonstrates how
effective these policies are.
running

the

have

We

-

so

Small

Administration to

Business

the proper

ease

handling of credit in this particu¬
lar and vital part of our economy.
Perhaps

the

biggest

that

way

steps the Administration has thus
far taken—tax cuts,

institutional

debt

management

well

the other items outside the

as

fiscal

field—are

to

our

freedom

in

the

in

We

taxes.

have

that

tax

our

in

tax cut

money

have

history.

This

tremendously

a

mended

and

the

of

by

Keith

which

will

bearing

upon

have

gross

Congress
are

tions

President

lation

has

the

broaden

to

asked

base

and

stock

and Means Commit¬

tee.

the

;

■„

,

In

bill, which is
before the Senate, are

housing

currently

extend

if

found

space

The New York

with

compared

net

imperative

of

profit

Exchange's

panies

publish interim state¬
earnings achieved almost

inducing listed

ments of

100%

Only 4% report
annually, "prima¬

success.

their

earnings

Mr.

Funston

the year 89%

allowed

to

change

the

terms

governmentally insured loans
and
mortgages as circumstances
require.
We have asked that a

secondary home mortgage market
be established.
The

Administration

that

the

has

urged
construction

highway

urogram

be increased and

ord

has

sum

already

a

rec¬

been voted

The

E

annual

firm

from

last

annual

annual.

ed

American farmer. The President's
program

is being actively consid¬

ered

both

by

the House

the

and

the

Administration

The

has

tive

departments

and

with

other

help

to

strengthen

our

the

states

governors

to study the

making

of

legisla¬

unemployment

the Administration

and

asked

various

recommended

improve1

insurance

bility

payment

possi¬
scales

Federal

planning

pointed and
The

State, local and

is

has

Office of
redirect

has

ap¬

re¬

op¬

stockpiling

ticker

the

non-recurring

in

and

system

charge of

$235,-

for

installing automatic tape
announcing equipment in the Quo¬

the

for

significant event
Exchange in 1953 — "at
the

from

point of view of
intense public interest"

arousing

the

—was

announcement

Investment

of

available

for

for the first time in Ex¬
change history, provides a way of
plan,

any

.

emer¬

Last but far

from

least, the tax
are specif¬

we

ically considering today, will
upon enactment have a tremen¬
dously helpful effect upon the
economy.
While it is basically a
long-overdue tax reform bill, it
can

help greatly the current

nomic transition.

business

There

projects

eco¬

are many

around

the

country which

are being held up
pending final decision on this re¬
vision bill.
It is imperative that
the earliest possible action should

be

ing

ownership

public

stocks."

gency.

revision bill which

taken.

When

the

bill

is

en¬

Mr.

'

.

"Own

is

Share

the

that

adopting

Your

at

creating

Ex¬

ness

at

as

of

a

many

as

necessity
serve

the

stock

or

can

The government

(a)

and
of

com¬

the

emergency

re¬

and

sound advice

indicated

that

tion

June 16; field day and gel*
tournament," White Bear Yacb*
Club, June 17.
\

DIVIDEND

NOTICES

-

TECHNICOLOR, Inc.

Stock

of

The

of

Board

declared

Firms

Exchange

(Baltimore, Md.)

sociation 19th annual

summer

ANNUAL

Common

(25$)

5,

share

out¬

Directors

of

for

record

■' ' V

•

16-20, 1954

National

of

three

of

busi¬

close

(Chicago, 111.)

Federation

Analysts

Societies

Exchange listed stocks at the end

the least government.

of

of

institu¬

about

$40

Value)

These

Finan¬

of

dividends

April 27,
of record

Conven¬

1954
at

L. G.

May 21-23, 1954 (Fresno, Calif.)

the

close

of busi¬

CLARK, Treasurer

April 9, 1954.

Security Traders Association of
Secu-

payable
stockholders

are

to

April 16, 1954.

ness

-

Los Angeles-San Francisco

H.

GOULD-NATIONAL

NOTICES

DIVIDEND

OGDEN,-Secretary.

BATTERIES, INC.

V

J

PAUL, MINNESOTA

Manufacturers of Automotive
•

i

and Industrial Batteries

>.

AMERICAN VISCOSE

DIVIDEND

CORPORATION

NOTICE
Preferred Dividend

The Board of Directors

Notice Of

Dividend Notice

a

ANNUAL MEETING OF STOCKHOLDERS
to be held

Directors of the American

May 5,1954

NOTICE IS HEREBY GIVEN,
that the annual meeting of stock¬
holders

.ALL1S-CH ALMERS

of

MANUFACTURING

COMPANY, a
(hereinafter

cose

per

Vis¬

called

the ''Company"), will he
at the general odices of the
Company, 112(1 South 70th Street,
West A Ills, Wisconsin, on Wednes¬
day, May 5. 1954, at twelve o'clock

held

Standard Time), for

(Central

the following
thereof;

To elect

a

purposes,

and

consider

To

or

any

•

t

Board of Directors;
act

upon

a

in

forth

set

the

in

April 7, 1954, de¬

clared

of

dividends

one

dollar

twenty-five cents ($1.25)

share

the five percent

on

cumulative

or

come

to

to

transact

record

per

Directors

today

(5%)

declared

a

of 754 per

preferred stock and

Common

dividend

share

on

Stock, payable

May 1 to shareholders of
record

April 20, 1954.

May 1, 1954, to shareholders of
record

at

the close of business

A. H. DAGGETT

on

President

April 19, 1954.

March

WILLIAM H. BROWN

30, 1954

any

may prop¬

on

the

stock

preferred

all

matters

meeting.

will

the meeting,

/^WORCD^DE

be
to

Holders

be entitled
hut only on

BANKING

DIVIDEND

NOTICE

\

r
The Chase National Bank of the

proposal, included in the pro¬
posed Amendment to Article IV of
the Certificate of Incorporation, to
the

of

$100 00

par

of New York lias declared
of

The

for

value pre¬
to 018,854

mon

22. 1954 as the record date
determination of the com¬

stockholders and the preferred
to

vote

entitled
at

adjournment

to

of

notice

thereof.

Vice

Dated;

President and

March

22,

Secretary.

1951.

billion—

ii

dividend

April

21,1954.

THE

CHASE

the meeting or any

By order of the Board of Directors,
W. E. HAWKINSON.

a

per

record at the close of business

of Directors has fixed

Board

the

50c.

City

share on the 7,100,000
shares of the capital stock of ihe Bank,
payable May 15, 1954 to holders of

number rf

shares.

March

April

20, 1954

the meeting

before

vote

before

vote at

shareholders of

adjournment thereof.

any

entitled
come

to

The Board of

fifty cents (50$) per share on the
common stock, both payable on

the respects
Proxy State¬

other business that

erly

^\v

Secretary

consider and

To

the Cumulative Preferred

Dividend

on

ment;

8.

on

Stock, payable May T,

Article IV of the Certificate of

Incorporation

share

Common

meeting
and

today declared

regular quarterly dividend of 56'/44

Corporation at their regular

Delaware corporation

and

value

on

Par

not yet
exchanged
Company's Exchange
Instructions dated May 19, 1953.

y, \

tion at the Palmer House.

.

($1

under the

cial

term

a

the

at

share

per

Stock

has

twenty-

the Common Stock (no

on

Par

May

1953.

of

of the Company, and a
dividend of fifty cents (50$) per

land.

MEETING

Directors

Value)

Baltimore Security Traders As¬
a

cents

the

May 14, 1954

WESTERN

April

of

dividend

a

five

meeting.

STOCKHOLDERS

stockholders

tional holdings of New York Stock

was

^

,■

let

the

Board of Governors of Associa¬

ferred stock from 259,481

larger investors.

1953

„

Milwaukee, Wisconsin

shares

the

also concerned with

dollar

(Minneapolis^

City Bond Club annual
picnic cocktail party, Hotel Nico&

May 12-14, 1954 (Boston, Mass.)

the

and

Holders of common stock will

(b)

investment program."

"The

.

1954

ing.

-MFG. CO.-

or

was

Association

Twin

24

and

^ALUS-CHALMERS

risks

is always "in"
That is one of the
facts of life today.
But we must
remember the fundamental prin¬
ciple that the best government is




at

C7

will

the

rewards

an

Funston

Exchange

economy.

the

proposal, recommended hy the
Board of Directors, to amend

fund; and (c) the vital need

any

Mr.

16-17,
Minn.)

Texas Group Investment Bank¬
Association 19th Annual Meet¬

COMPANY

increase the authorized

in

dinner

annual

(Philadelphia, Pa.)

'

June

SAINT

share own¬
the Exchange

investment;

for

New

May 9-11, 1954 (Dallas, Tex.)

NOTICES

AND

W.

new

stress:

to

well

mon

land, Pa.

Dealers

Waldorf-Astoria.

April
15,
1954, will be entitled to vote
meeting. '
'
By order of the Board of Directors.

2.

community has stressed
continue

of

such

American

of

satisfying the investment needs of

the

three

years.
_.„ckholders

recognizes
program aimed

For that reason,

ers.

York

11, 1954

Western

elect

1.

a

omy.

new

to

"The Exchange fully

hazards

Club

of Philadelphia summer outing at
Manufacturers Country Club, Ore-

Security Traders Association of

Meeting of Stockholders of Nor.
Railway
Company will be
he'd, pursuant to the By-laws, at the principal
office of the Company in Roanoke, Virginia, on
Thursday, May Id, i95s, at iO o Cioco. a. ha.,

theme,

as

for information

these

OP

OP

and

Business," and commented:
the

at;

(New York City)

Bond

Investment Traders

(St. Louis, Mo.)

Municipal
Group annual outing.

Annual

The

folk

noon

.

said

Funston

change

■

listed

of

expanding
go ahead with their
plans, which will result in the
creation of thousands of jobs and
the vital expansion of our econ¬

acted,

businesses

NOTICE

the

.

be

20

subsidiary

Virginia,

Roanoke,

The

Plan.

purchasing listed stocks on a payps-you-go basis.
areas.
"The new plan," he said, "ranks
The
Administration
is
going in potential value with the oddahead with improved planning of lot
system, introduced some 80
its public works programs which years ago, as a means of broaden¬
can

estate

"for

buildings

the

program,

.

June

the

at

Louis

most

which will help distressed mining
....

dinner

Roosevelt.

St.

Convention

Country Club and Beacftt
Club, Rye, N. Y.

that per¬

declared

Funston

the

summer

Golf arul

York 21st annual outing at West¬

Division.

Monthly
the

asked

Mobilization to

Defense
its

been

work.

at

now

President

to

the

The increase

least

A committee for

tax—ihcreased

cost of leased-line

haps

by

the

by

RAILWAY

year.

Mr.

He

chester

Apr. 29-30, 1954

wholly-owned subsidi¬

NORFOLK

1953—exclud¬

preceding

tation

and

Finance

of

anniversary

Hotel

operation of

$8,239,811

000

1

real

said,

MEETING

leased-line

of

:

'

Detroit

Annual

ing at the Country Club of Mary-

income

eration

buildings
20 and 24 Broad

he

Street

Funston

from

the

of

realistic.

more

Keith

$9,315,757

a

We have

has

G.

fuil

flected the

the

leading

a

a

erection

ing depreciation and provision for

economy.

tion

Broad

ticker system.

Federal

in

result

w"V;'I

occupied

now

execu¬

bodies to do things

governmental
will

taken

School

Canada

Municipal

Association of Customers Brok¬
ers

of the corporation of the land

ary

Total expenses in

specific actions within the

by

income
the

from

of

on

•"

with

lease

in¬

first

year's

Senate.

that

to

primarily

the

standing

might

of

Grosse

June 11, 1954

the

and

New

Corporation,"

reflect¬

recom¬

positive program for
price supports for the

America

May 7, 1954 (New York City)

which

(Detroit, Mich.)

Club

Jasper Park Lodge.

firm, General Realty and Utilities

$10,011,409
from $9,163,-

a

semi¬

Sleepy
Scarbor¬

ers

in-

The

of

of

>

Exchange's

that

creased

to

;

.

the

at

Club,

Investment Dealers' Association,

President dis¬
closed that negotiations were un¬

The

into

income

year

quarterly and

*

30t&.

June 9-12, 1954 (Canada)

Apr. 29, 1954 (New York City)

"Negotiations have been entered

report

gross

(Philadelphia,

1954

Association

nine companies changed from
a quarterly basis,

one

nge's

disclosed

12-16,

Institute of Investment Bank¬
ing second annual session at the
University of Pennsylvania (spon¬
sored by the Investment Bankers

semi-annual to

two from annual to

Street.-,. V.

The

a

crease

Administration., is

flexible

h

xc

Bond

during

publishing statements of
earnings quarterly or monthly and
7% semi-annually.
During the

now

an¬

nounced.

199.

by the House.

mending

President,

June 8, 1954

Field

Pa.)1

were

demolition

be

that

said

of listed companies

day

York

Country Club.

Wharton

businesses."

field

Country
ough, N. Y.

Commerce.

their

New

of

party at the

rily because of the seasonal nature

the

<of

Investment

Knollwocwk

(New York City)

Club

Hollow

EVENTS
In

Chicago 41st an¬

day at the

June 4, 1954

COMING

of

Funston,

in

com¬

to

have

government

"

annual

Apr.

of

way

the

{

Bond

long-standing

program

der

that

:

necessary."

field

Club, Lake Forest, 111.

Ex¬

of securities."

Keith

asked

the

In recognition of
Exchange adopted various

of

$157,012

that

(Chicago, III.)

Bond Club of
nual

for extension' of the stock
trading
area should such expansion
prove

market.

our

this the

two Administration proposals af¬
fecting the building of homes. We

1952,

pro¬

June 4, 1954

structed to permit the entire lower
floors to be used at a later date

change and its members aggres¬
sively gear operations to serve
this large and growing segment

a

Stock

Exchange
and
affiliated companies
earned
a
net profit in
1953 of $35,505,
which

is

year

necessary.

legislation is currently before the
House Ways

to

structure

trading

benefits of old age insurance. This

Says negotia¬

under way to erect an

are

additional

legis¬

though

around 9%,

rose

"It

The

Dips

that

a

market's

1

liquidity.

blocks

Up,

fell from $157,012 to

$35,505 in 1953.

as

follows:
The

revenues

net income

considerable

the economy

reveals

the

on

Traders
Association
join*
Spring Outing at the Haciendar

Fresno.

changes in 1953 designed to
facilitate
the
transfer
of
large

Funston, President of the

Exchange,

holdings have

influence

Thus,

rity

rules

beneficial

the

before

now

the

well.

But Net Income

things
recom¬
Administration

the

current

NYSE Revenues

sav¬

effect in stimulating the economy.
Some

is

will total

year

such
huge amounts of
for peacetime use should

of

ing

the

more

economy

found

di¬

nation—not only
transition period

our

but in the long run as

billion, the largest total dol¬

$7.4
lar

this

effected

cuts

noted

the

in

And

economy.

strength of

is in this matter of

in

steps

rection of restoring more freedom

the government is continually "in"
economy

monetary and
operations, as

whole.

as a

office

"Present plans contemplate that
the new building would be con¬

.

,

market turnover

air-conditioned

building.

economy

49

RATIONAL

BAHX

The
closed
ment

transfer
in

books

connection

will

with

not

the

be
pay¬

of this dividend.
KENNETH C. BELL

OF THE

CUT

Of

NEW YORK

Vice President and Cashier

50

The Commercial and Financial Chronicle

(1710)

.

.

.

Thursday, April 15, 1954

it IN DICATES

Securities Now in
it Acme Industries,

(5/3)

Inc., Jackson, Mich.

stock (par $1).
Proceeds—For
Underwriter — Baker, Si-

April 12 filed 50,000 shares of common
Price—To be supplied by amendment.
general corporate purposes.
monds & Co.,

-

Detroit, Mich.

Allegheny Natural Gas & Oil Corp. (Del.)
(letter of notification) 500,000 shares of com¬
mon stock
(par one cent).
Price—60 cents per share.
Proceeds
To drill and complete wells, for improve¬

Registration

it Carolina Casualty Insurance Co.,
Burlington, N.C.
April 7 (letter of notification) 20,000 shares of class B
stock (par $1).
Price—$4 per share. Proceeds—To in¬
crease capital and
surplus. Office — 262 Morehead St.,
Burlington, N. C. Underwriter — Courts & Co., Atlanta,

it Alliance Finance Corp., San Antonio,

1989.

of common stock (par 10 cents). Price
preferred, $10 per share; and of common, $1 per
share.
Proceeds — To finance notes of mobile homes.
and 25,400 shares

—Of

Office—2231 Austin

Highway, San Antonio, Tex. Under¬

writer—None.

(4/27)
April 6 filed 65,000 shares of common stock (par $5).
Price—To be related to the market price of the stock on
the American Stock Exchange at time of offering. Pro¬
ceeds—For advances to subsidiary. Underwriter—Hemp¬
hill, Noyes & Co., New York.
Allied Products Corp.,

Detroit, Mich.

At market.

be

tatively expected to be received on May 4.
it Clinchfield Coal Corp.
April 6 (letter of notification) 1,500 shares of common
stock (par $20).
Price—At market (approximately $32
per

Price—

Proceeds—To J. P. Routh, the selling stock-',

share).

Underwriter—Fahnstock & Co., New York.

Columbia Gas System,

Proceeds—For investment.

(4/21)

Inc.

$50,000,000 of subordinated convertible
debentures due 1984 to be offered for subscription by

March

Claussen Bakeries, Inc., Augusta, Ga. (4/20)
April 1 filed 162,500 shares of class A common stock

filed

22

stockholders

common

(par $iy and 62,500 shares of class B common stock (par
$1). Price—Of class A shares, to be supplied by amend¬
ment; of class B shares, $8 per share.
Proceeds—From
sale of stock, together with
$500,000 to
sale of 5%
debentures, will be used to
H. H. Claussen's Sons, Inc.

Probable

by competitive bidding.

determined

Halsey, Stuart & Co. Inc., Blyth & Co., Inc., and
White, Weld & Co. (jointly); Kuhn, Loeb & Co. and
Wertheim & Co. (jointly); GlorepForgan & Co.; The
First Boston Corp.; Dillon, Read & Co. Inc. Bids—Ten¬

holder.

April 12 filed 10,000 shares of its capital stock.

Texas

(5/4)

$20,000,000 of first mortgage bonds due
Proceeds—For construction program. Underwriter
filed

31

bidders:

* Cincinnati Fund, Inc., Cincinnati, Ohio

April 7 (letter of notification) 23,001 shares of 60-cent
cumulative and participating preferred stock (no par)

ISSUE

—To

it Chase Chemical Co.
April 12 (letter of notification) 30,238 shares of common
stock (par 10 cents) to be issued upon exercise of war¬
rants. Price—75 cents per share.
Proceeds—For work¬
ing capital. Office — 280 Chestnut St., Newark, N. J.
Underwriter—Vickers Brothers, New York.

of New York.

REVISED

Cleveland Electric Illuminating Co.
March

Ga.

ments, to acquire additional oil and/or gas producing and
non-producing properties, leases or interests and for
working capital. Office—Titusville, Pa. Underwriters—
S. B. Cantor Co. and Northeastern Securities Co., both

PREVIOUS

ITEMS

•

March 19

—

AD DITION S

SINCE

April

record

of

21

basis

the

on

each 36 shares held; rights to
expire on May 10. Price—100% of principal amount.
Proceeds—For construction program. Underwriter — To
be determined by competitive bidding. Probable bidders:Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
To be received up to 11:30 a.m. (EST) on April 21 at
of $100 of debentures for

be received for
acquire stock of

Underwriter—Johnson, Lane,

Space & Co., Inc., Savannah, Ga.

120 East 41st

St., New York 17, N. Y.

NEW ISSUE CALENDAR

American Coffee-Matic

Corp., N. Y.
March 22 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
-A/v-For working capital, etc. Office—20 Broad St., New
^/ork, N. Y. Underwriter—Mid-West Securities, 164 Con¬
gress St., Brooklyn, N. Y.
; -;A;

share. Proceeds
Underwriter—None.

and surplus.

—

Gt.

noon

'

CST)

(Bids

Trust Ctfs
''AAA'-/ A.'A/ AA

$1,845,000

(par $100).
To increase capital

Apex Uranium, Inc. (4/20)
/April 5 (letter of notification) 1,775,000 shares of com¬
mon stock (par one cent), of which 400,000 shares are to
be offered to public and 1,375,000 shares to 20 existing
stockholders. Price—To public, 10 cents per share, and
to stockholders, one cent per share. Proceeds—To finance
exploratory and development operations.
Office—718
Majestic Bldg., Denver, Colo. Underwriter — Carroll,
Kirchner & Jaquith, Inc., Denver, Colo., for 400,000

Big Horn-Powder River Corp

to

Combustion

Engineering,

and

Mid-State

Union
Allen

Securities
&

Corp.;

Corp

Uranium

$50,000

&

Co.)

April 20

v

—

.

Common

Camellia Diced Cream Co. stock at the rate of
of Axden

Farms

mellia stock.

47, Calif.

for

common

each

stock

for

shares

share

'

of Ca¬

18

(Johnson, Lane,

(McLaughlin,

(Starkweather

(4/20)

Underwriters—To be

&

Co.;

Front

Basin Natural Gas Corp.,

Santa Fe, N. M.
^Dec. 23 (letter of notification) 748,000 shares of common
stock (par five cents). Price—40 cents per share. Pro¬
ceeds—To acquire properties and leases. Office — Blatt
Bldg., Santa Fe, N. M. Underwriter—Hunter Securities
Corp., New York.

&

Co.;

(H.

J.

Cooney & Co.)

Northern

States
(Bids

Securities,

Power
10:30

&

and

Coggeshall & Hicks)

11

mon

System,

(Bids

stock

of record
60

cents

(par

10 cents)

March 31,
per

share.

1954

to be offered to stockholders
on

a

pro

Proceeds—To

working capital. Office
Underwriter—None.

—

rata basis. Price
retire

930-17th

debt

and

Temco

Aircraft

11.30

Inc

Debentures

EST)

a.m.

mortgage

qmount.

bonds. Price — At 100% of principal
Proceeds—To advance sums to Topeka Broad¬

casting Association, Inc.,
tion of certain bonds.

a

subsidiary, and for redemp¬

Underwriter—None.

Co.)

300,000

(Thursday)

to

be invited)

& Co.)

Ripley

(Harriman

(Friday)

General

Preferred

$21,000,000

Inc.)

.

(Wednesday)

(Offering

Common

Utilities

Public

Fenner

Common

Beane

about

Montana

Corp

stockholders—Merrill Lynch, Pierce,
may act as clearing agent)

to
&

600,000

shares

Debentures

Co.

Power
(Bids

11

a.m.

EDT)

$18,000,000

(Monday)

North American Uranium & Oil
&

Co.

&

$1,787,500

(Offering to stockholders—underwritten by Lazard Freres
& Co.; White, Weld & Co.; and W. C. Pitfield &
Co.,
Inc.) 325,000 shares
'." '

(Israel

$50,000,000

Niagara Mohawk Power Corp.....

Telephone Bond & Share Co..

■

(Tuesday)

May 11

May 12

C

Preferred
$35,000,000

Consolidated Edison Co. of New York, Inc.__Bonds

Common

April 26

Debentures

$25,000,000

Co
Co., Inc.)

(Blyth &

shares

Corp

April 23

EDT)

a.m.

Allis-Chalmers Mfg.

(Thursday)

(Gearhart & Otis, Inc. and Crerie

\"'t

Bonds
Ay

$20,000,000

(Wednesday)

May 6

i

Common

Noel &

Uranium

EDT)

a.m.

11

(Bids

Capper Publications, Inc., Topeka, Kansas
March 23 filed $2,000,000 of series six 5-year first mort¬
gage 4% bonds and $2,000,000 of series seven 10-year

Bonds

$15,000,000

Jersey Bell Telephone Co

$50,000,000

Corp

April 22
Standard

first

11

(Bids

for

St., Denver, Colo.

$6,000,000

invited)

be

May 5

$12,000,000

Debentures & Common

(Van Alstyne,

to

(Bids

(Offering to .stockholders—no underwriting) $224,000

—

:

11

Wisconsin Electric Power Co

by Morgan Stanley

131,836 shares

(Wednesday)

Keps Electric Co
com¬

(Bids

Bonds
EST)

a.m.

April 21
Gas

Preferred

Counties Gas Co: of Calif.

New

Columbia

EDT)

Co

Power

(Bids

•

Big Horn-Powder River Corp. (4/17)
April 2 (letter of notification) 280,000 shares of

a.m.

$6,000,000

EDT)

Southern

-

Av

;

West Penn Power Co
(Bids

Bonds
a.m.

(Bids .11

Common

stockholders—underwritten

Co.

Bonds

Co

$20,000,000

Montana

$15,000,000

Co.)

(Friday)

May 14
Corp.

Common

First Nat'l Bank of Toms River, N.

$1,500,000

'

'

(Offering

stockholders)

to

J

Common

$150,000

.

A

"..

■

Allied Products Corp....

*

I-T-E

(Bids

Boston

Philadelphia

Pittsburgh

San Francisco

Private iVircs




to

all

Barney

&

Common
41,159

v

Webber,

and C.
$5,000,000

Co.

Jackson

(Bids to

C.

Securities

be

invited)

be

invited)

May 25

Collings & Co.)

___

_

.Bonds

$65,000,000

Bonds

$25,000,000

Indiana, Inc.__Preferred
&

Curtis and

Stone

&

Corp.)

30,000

shares

(Tuesday)
Debentures

Consolidated Natural Gas Co
(Bids

11:30

a.m.

edt)

$25,000,000

May 26 (Wednesday)

Bonds

Public. Service Electric & Gas Co
•

Webster

to

—Bonds

$20,000,000.,^>'

Virginia Electric & Power Co

April 28 (Wednesday)
(Paine,

invited)

Preferred

i

Cleveland

be

r

^

Pacific Gas & Electric Co._j.i_

shares

Chicago

General Telephone Co. of

offices

to

(Bids

Co._A
underwriting)

(Tuesday)

New York State Electric & Gas Corp

$50,000,000

Circuit Breaker Co

(Smith,

New York

stockholders—no

May 18

,

Bonds

CDT)

a.m.

Housatonic Public Service
to

"

65,000 shares

Commonwealth Edison Co

(Offering

•

Common

(Hemphill, Noyes & Co.)

10:30

"

I"Riric

t.n

Via

ffcFifl OOfi

DfY)

i
r

f

a,

•v

April 27 (Tuesday)

(Bids

.

(Tuesday)

be invited)

Montana Power Co

$300,000

Peninsular Telephone Co
(Offering to

<

Common

Crutt'enden

of common

30,000 shares

Electric Illuminating
(Bids to

Preferred

CST)

,

Common

May 4
Cleveland

.Common

Inc.)

pfd. and 85,909 shs.

(Smith, Barney & Co.)

<

Common

Co

a.m.

$1,000,000

and

A

Bonds
$10,000,000

EDT)

a.m.

Republic Aviation Corp
>

•

$299,000

New Mexico Copper Corp.____
iMitchell

;

*

Range Uranium Mines, Inc..

determined

by competitive bidding. Probable bidders: Blyth & Co.,
Inc.; The First Boston Corp. and W. C. Langley & Co.
(jointly); Lehman Brothers, Equitable Securities Corp.
and White, Weld & Co. (jointly). Bids—To be received
up to 11 a.m. (EST) on April 20 at 2 Rector St., New
York, N. Y.

Evans

11:30

Preferred &
Co.)

.Common

A.

50,000 shares

(The First Trust Co. of Lincoln, Neb. and
&

>

McCleary & Co.) 25,000 shares

Common;

Inc
& Light Co

A

;.

shares

$2,000,000

Co.)

Clement

$7,905,000

(Monday)

(Baker, Simonds & Co.)

(Bids

Bonds

ReUss &

EDT)

Kansas-Nebraska Natural Gas Co., Inc.

Common
225,000

Devon-Leduc Oils Ltd

filed

construction.

$7,000,000

Co.)

Space &

Florida Public Utilities Co.__„

70,000 shares of cumulative preferred
(par $100). Proceeds—To repay bank loans and

new

EST)

a.m.

Equip. Trust Ctfs.

noon

Industries,

'.AA'

Delaware Power

Preferred

Claussen Bakeries, Inc..—

Ave., Los Angeles

Underwriter—None.

Arkansas Power & Light Co.
March

12 V2

Office—1900 W. Slauson

one

11

$5,000,000

Inc.)

Co.,

&

May 3

A-A

(Carroll, Kirchner & Jaquith, Inc.) 400,000 shares

(Bids

Gordon

(Philip

Southern Pacific Co

Acme

(Tuesday)

Arkansas Power & Light Co.„

April 5 (letter of notification) 12,289 shares of common
stock (par $1) to be exchanged for 153,615 shares of

Common

Light Metals Refining Corp

(Bids

:

Apex Uranium, Inc.!

it Arden Farms Co., Los Angeles, Calif.

Preferred

Common

$300,000

shares.

$15,000,000

Walker & Co.) $4,000,000

Boston Corp. and G. H.

iThe First

Co.;
'-A AAA,;.'

-

Mining Corp

(Tellier

&

.Preferred

(Frazee, Olifiers & Co.)

Paradox

Reynolds

$35,437,500

Co.)

Commercial

Debentures

Inc

First Boston Corp.)

Empire District Electric Co
.Common

Co.;

(Thursday)

April 29

$168,000

Gas Service Co
&

421,492 shares

underwriting)

stockholders—no

(The

Loeb

Common

Wisconsin Electric Power Co

-Common

(Offering to stockholders—no underwriting)

(Kuhn,

Bonds
$15,000,000

EDT)

noon

(Saturday)

April 19 (Monday)

•

and Glore, Forgan & Co.) 400,000 shares

Light Co

&

Power

Utah

;

RR_„_ .Equip.

Common

Co

Gas

(The First Boston Corp.

Equit. Trust Ctfs.

CST) $4,695,000

noon

North.

(Bids

April 17

March 17 filed 20,000 shares of capital stock
per

(Bids

International

Illinois

Northern

(Thursday)

(Offering

American Transportation Insurance Co.,
Kansas City, Mo.

Price—$150

April 15

Chicago & North Western Ry

Number 5316

Volume 179

.

.

.

The Commercial and Financial Chronicle

(1711)

^Combustion Engineering, Inc.

(4/29)

Hudson

St., New York 14, N. Y.
Bliedung, Washington. D. C.
-

April 9 filed $15,000,000 of sinking fund debentures due

Price—To be supplied by amendment. Pro¬
ceeds—To repay $10,000,000 bank loans and for general
corporate purposes.
Underwriter — The First Boston
Corp., New York.

Underwriter—Carl J."

share).

"

3%%
for

bonds due

if Consol. Edison Co. of New York, Inc. (5/11)
April 7 filed $50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York

Firth-Loach Metals,

•

Under¬

by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley
& Co.; The First Boston Corp.
Bids—Tentatively ex¬
pected to be received on May 11.

stock

Holding Corp.,

F.

a

subsidiary, and for working

capital. Underwriter—None. This offering is a continua¬
tion of earlier offerings of same classes of securities.

if Cornell-Dubilier Electric Corp.
April 7 (letter of notification) 1,666 shares of
stock.

Price—At market (approximately
$30 per share).
To Octave Blake, the
selling stockholder.

Proceeds

Underwriter—Pyne,
•

Kendall & Hollister, New York.

holders of

Delaware Power &

April

6

filed

Light Co. (5/3)
$10,000,000 first mortgage

tihist bonds due 1984.

Proceeds

—

\

and

To retire

collateral

bank loans

and for construction program.
termined by competitive

Underwriter—To be de¬
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Blyth & Co., Inc. (jointly); White, Weld & Co. and
Shields & Co. (jointly); Union Securities
Corp.; Lehman

Brothers; Morgan Stanley & Co.; Kuhn, Loeb & Co. and
Salomon Bros. & Hutzler
(jointly); W. C. Langley & Co.
Bids—Tentatively expected to be received up to 11:30
(EDT)

a.m.

on

(par 20 cents)

May 3.

':

and

common

stock

common

outstanding

bonds,

repay

bank

loan

and

for

general
corporate purposes, including drilling commitments in
the Stony Plain India Reserve and in
participation of
the development of the Buck Lake Area.
Office—Winni¬
peg, Canada.
Underwriter—McLaughlin, Reuss & Co.,
New York.

• Diamond Portland Cement Co.,
Middle Branch, Ohio
April 8 (letter of notification) 13,403 shares of

(par $1). Price—$21.50 per share.
Proceeds—For
general corporate purposes, in part to replenish
working
capital used previously to purchase a
walking drag line,
Underwriter—Merrill, Turben & Co., Cleveland, O.
Ducommun Metals &
Supply Co.,
Los

March 26 (letter of
notification) 6,678 shares of
stock

common

(par $2).
Price—$14.50 per share.
Proceeds—To
E. Ducommun.
Underwriter—Hill Richards &

Charles

Co., Los Angeles, Calif.
i

on

For

•

Johnston Adding Machine Co.

Gas Service

Co., Kansas City, Mo. (4/19)
1,500,000 shares of common stock (par
$10). Price — $23.62V2 per share. Proceeds
To Cities
Service Co., the parent.
Underwriters—Kuhn, Loeb &

March

18

Co., Union Securities Corp., Reynolds & Co. and Allen &
won

award of this issue

public, expected

on

April 19.

on

General Credit

April 13. Offering—

v

com¬

stock (par 10 cents) to be
offered to stockholders.
Price—25 cents per share.
Proceeds—For general cor¬

mon

porate

purposes.

5, N. J.
•

Office—248

McWhorter

St.,

Newark

Underwriter—None.

ElectroData Corp.,

Pasadena, Calif.

March 15 filed 450,000 shares of
of which
approximately

common

43,800 shares

stock

are

(par $1),
being offered

for subscription by common
stockholders of Consolidated
Engineering Corp. at the rate of one share for each two

Consolidated shares held April
8; rights to expire April
29. Price—$3.50 per share.
Proceeds—To repay advances
from Consolidated and for
working capital, etc. Business
To design, develop, manufacture
and sell or lease

—

standard

and

specialized
electronic
data
processing
equipment for scientific, industrial and commercial uses.
Underwriter—Blyth & Co., Inc., San Francisco, Calif.

if Empire District Electric Co.

(4/29)

April

8 filed 40,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬

ceeds—To prepay bank loans and for

new

construction.

Underwriters—The First Boston Corp. and G. H. Walker
& Co., New York.
•

Empire Oil & Refining Co., Inc., Tyler, Texas
9
(letter of notification) 60,000 shares of com¬

March
mon

at

stock (par five cents).
cents
per
share).

70

Price—At market (estimated
Proceeds
To underwriter,
—

Charter Securities
Corp., New York.

if Family Digest, Inc.
April 9 (letter of notification)
stock.

Price—At

operating

capital

par

and

Corp., Miami, Fla,,

,

($1

5000 Baum

_

(letter of notification) 74,990 shares of capital
(par$l). Price—$4 per share. Proceeds—For work¬
ing capital. Office—799 N. W. 62nd Street, Miami, Fla.
stock

•

General Gas

Fla.

selling stockholders. Underwriter—Kidder, Peabody
Co., New York. Offering—Postponed indefinitely.

per share.

common

stock

&

(par $1).

acquisition of Ford Hopkins Co., Chicago, 111.
writer—A. C. Allyn & Co.,
Inc., Chicago, 111.

Telephone Co. of Indiana, Inc.

(4/28)

York, and Sincere & Co., Chicago, 111.
•

operating




share).

Proceeds—For

expenses.

Office—421

($1

buildings and equipment.
if Grace
April 12

(W. R.)

(letter

share).

Proceeds
Underwriter—None.
per

For

of

notification)

not

to

exceed

5% sinking fund de-;
bentures, due Oct. 1, 1966, and 50,000 shares of capital
stock (no par), the latter to be first offered for sub¬

5,500

aggregate not to

ex¬

scription by stockholders. Price—For debentures, at par;
and for stock, $10 per share. Proceeds—To finance expanded merchandise inventory and operating equipment (new building), and for working capital. Under-

selling stockholder. Of¬
Hanover Square, New York, N. Y. Underwriter

if Grant (W. T.) Co., New York
April 9 filed 175,000 shares of its common stock (par $5)
to be offered for sale by
employees of the company
under its "Employees Stock Purchase Plan."

Macmillan
March

Dallas, Texas

notification) 5,000 shares of common
(par $10) to be offered for subscription by stock¬
holders of record April 12 on the basis of one new share
stock

Price—$55

•

share.
Proceeds
Office — 3015 Cedar
Underwriter—None.
per

if Martin Arms Corp., Las Vegas, Nev.
8 (letter of notification) 5,000 shares of class A
preferred stock (par $5) and 5,000 shares of common
stock, class B (par $5) to be offered in units of one share
of each class.
Price—$10 per unit.
Proceeds—To man-

Jersey City, N. J. Underwriter—
Co., 26 Journal Square, Jersey City.

April

Jersey.

if Home Improvement Financing Corp.
April 12 (letter of notification) 30,000 shares

of 6%
preferred stock (with warrants to purchase 60,000 shares
of class A common
stock). Price — At par ($10 per

Basket, Los Angeles, Calif.

Bateman, Eichler & Co., The First California Co., Inc.,
and William R. Staats & Co., all of Los Angeles, Calif.

Exchange Place.
Securities

Market

record April 7, on a one-for-ten basis; rights to expire
on
April 23.
Price—$16.50 per share.
Proceeds—For
improvements
and
working capital.
Underwriters —

Harlan-Franklin Oil Corp., Jersey
City, N. J.
(letter of notification) 297,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For expenses incident to
acquisition of property
and related activities with
respect to oil business. Office
Luster

,

v"

15 filed 28,830 shares of common stock (par 50
cents) being offered for subscription by stockholders of

March 1

—15

Co., New York
(letter of notification)

stock

March

—For general corporate
purposes.

Springs Road, Dallas, Tex.

26

1,469 shares of com¬
(par $1). Price—At market (around $24 per
share). Proceeds — To George P. Brett, Jr., President.
Underwriter—Hemphill, Noyes & Co., New York. No
general public offer planned.

March 29 (letter of

for each 44 shares held.

*

writer—None.

mon

Insurance Co.,

*

Los Angeles Drug Co.
28 filed $178,000 of 15-year

—None.

Gulf

•

Jan.

& Co.

shares of capital stock. Price—To
ceed $165,000.
Proceeds—To a

fice— 7

—

Light Metals Refining Corp., New York

equipment of control plant, and main plant, working
capital, advance royalties and reserves.
Business — To
refine beryllium ore and market the products.
Underwriter—Philip Gordon & Co., Inc., New York.

^ Golden West Poultry Farms, Inc.
April 6 (letter of notification) 150,000 shares of capital
par

^

(4/29)
Feb. 15 filed 1,250,000 shares of common stock (par $1).
Price —$4 per share.
Proceeds —For construction and

Underwriter—Paine, Webber, Jackson & Cur¬
Stone & Webster Securities
Corp., both of New

Price —At

stock (no par)
purchase plan

.

struction.

stock.

March 29 filed 40,000 shares of common
issuance under the company's stock

for

if Kropp Forge Co., Cicero, III.
April 7 (letter of notification) 26,450 shares of common
stock (par 33% cents). Price—At market (estimated at
$2.50 per share). Proceeds—To Roy A. Kropp, Chairman
and President. Underwriter—L. D. Sherman & Co., New,j

Under¬

30 filed 30,000 shares of $2.50 cumulative
pre¬
ferred stock (no par). Price—To be supplied
by amend¬
ment. Proceeds—To repay bank loans and for new con¬
tis and

...

& Co., New York

Kropp Forge Co., Cicero, III.
11 (letter of notification) 40,425 shares of com¬
stock (par 33V3 cents). Price—At market (estimated
at $2.75 per share) and will not exceed an aggregate of
$150,000. Proceeds—To Estate of Emma C. Kropp. Un¬
derwriters— L. D. Sherman & Co., New York, and Sin¬
cere & Co., Chicago, 111.

Proceeds—To pay part of cost

of

General

H.)

mon

General Stores Corp., New York

Price—$1.37i/2

Blvd., Pittsburgh 13, Pa. Underwriter^r-None.

(S.

March

—

March 8 filed 300,000 shares of

Kress

for selected employees.

Corp., Baton Rouge, La.

March 19 filed 100,000 shares of common stock
(par $5).
Price
To be supplied by amendment. Proceeds — To

New

142,875 shares of class A

per

(4/21)
April 6 (letter of notification) $200,000 of 14-year
%
registered debentures and 12,000 shares of capital stock
(par $1) to be offered to present debenture holders of
record April 1; with rights to expire on May 4, in units
of one $500 debenture and 30 shares of stock.
Price—
$560 per unit. Proceeds—For working capital. Office—

March 25

Underwriter—Murphy & Co., Miami,

100,000 shares of com¬

if Keps Electric Co.

filed

—

Co. who

(letter of notification)

stock (par $1).
Price—$2 per share. Proceeds—
tooling and dies. Office—402 N. Carson St., Carson
City, Nev, Underwriter—None.

mon

York.

Duggan's Distillers Products Corp.
19 (letter of
notification) 200,000 shares of

Feb.

U--

Statement effective March 10.

short-term loans. Underwriters—Smith, Barney &
Co., New York, and C. C. Collings & Co., Inc., Phila¬
delphia, Pa.
1

March

Angeles, Calif.

two

duce

general corporate purposes. Underwriter—None.

;
common

New York

(4/27)
April 5 filed 100,000 shares of preferred stock (par $50).
Price—To be supplied by amendment. Proceeds—To re¬

March 16

v

stock

St.,

I-T-E Circuit Breaker Co.

•

(4/20)
10-year 5% convertible sink¬
ing fund leasehold mortgage bonds due , May
1, 1964.
Price—100% of principal amount. Proceeds—To redeem

in

the basis of seven new shares for each 10
shares held.
Price—To be supplied by amendment. Proceeds—To
pro¬
vide financing for Telephone Bond & Share Co.
and for

To

Devon-Leduc Oils Ltd.
March 10 filed $2,000,000

Co., At¬

(State of)

New York.

to be offered for subscription by

participating

&

$350,000,000 of development bonds to be
types, viz: 15-year 4% dollar coupon
bonds and 10-year dollar savings (capital appreciation)
bonds. Price—100% of principal amount. Proceeds—For
investment in The State of Israel for agriculture, indus¬
try and power, transportation and communication, and
low cost housing; and for general reserve. Underwriter
—American Financial & Development Corp. for
Israel^

Gary (Theodore) & Co., Kansas City, Mo.
310,000 shares of participating common

'stock

Underwriter—Courts

24 filed

offered

March 31 filed

—

on April 28. Price—At
share). Proceeds—To repay bank loans and

construction.

Israel
Feb.

Un¬

derwriter—Sheehan & Co., Boston, Mass.

1

held; rights to expire

per

porate purposes. Office—148 East 38th
16, N. Y. Underwriter—None.

Corp., Wilmington, Del.
(letter of notification) 140,006 shares of common
stock (par 10 cents).
Price—$1.50 per share. Proceeds—
For inventory, capital
expenditures and working capi¬
Office—100 West 10th Street,
Wilmington, Del.

being

stock.

Gamma

common

new

Front

tal.

stock

common

April 12 (letter of notification) 49,000 shares of common
Price—$1 per share. Proceeds—For general cor¬

Co., New York; Clement

Atlanta, Ga.; and McCleary & Co.,

Feb. 2

writer—None.

shares of

Chesapeake & Potomac Telephone Co. of Virginia.

New York.

Cornbelt Insurance Co.,
Freeport, III.
March 17 filed 300,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For investment. Under¬

142,500

if l-S, Ultd., Inc.

Range Uranium Mines, Inc. (4/20)
April 1 (letter of notification) 1,495,000 shares of com¬
mon
stock (par one
cent). Price—20 cents per share.
Proceeds—For mining expenses. Office—Interstate
Trust
Bldg., Denver, Colo. Underwriter—H. J.
Cooney & Co.,

At par. Proceeds—To retire class B
and 5% cumulative preferred stock of

common

L.

•

Underwriter—None.

lanta, Ga., for 78,336 shares. The balance of 64,164 shares
are
to
be
purchased by two principal stockholders,
Southern Bell Telephone
& Telegraph Co. and The

Inc., St. Petersburg, Fla.

—

G;

&

($10

for

expansion, equip¬

Underwriter—None.

Underwriters—Starkweather

March 26 filed 7,500 shares of 4% cumulative
preferred
stock (par $100) and 500,000 shares of common stock

Price

four shares

24

A. Evans & Co., Inc.,

filed

18

par

(par $25).

Public Utilities Co.
(4/20)
(letter of notification) 25,000 shares of com¬
(par $3). Price—At market (to be
supplied
amendment). Proceeds—For construction program.

by

(4/27)

for

offered first for subscription by common stockholders of
record March 30 on the basis of one new share for each

stock

mon

Cooperative Grange League Federation
Exchange, Inc.

(par $5).

working capital.

improvements.
N. J.
Under¬

Inter-Mountain Telephone Co.

March

Florida

March

'

•

Inc.^ Pittsburgh, Pa.
—

ment and

Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general mortgage bonds.
writer—To be determined

filed

March 18 filed
33,400 shares of capital stock
Price—$25 per share. Proceeds
For

home

Plainfield,

and for construction expenses.

Corp., New York
250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At
par ($2 per share). Pro¬
ceeds—For working capital.
Underwriter—E. J. Foun¬
tain & Co., Inc., New York.
29

finance

St.,

common stock
(par $15)
subscription by stockholders of record
April 23 at the rate of one new share for each eight
shares then held (with unsubscribed shares
being offered
to officers and
employees). Price — To be supplied by
amendment.
Proceeds—To repay $130,000 bank loans

to be offered

Financial Credit

Jan.

To

Front

if Housatonic Public Service Co.

Colo.

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Glore, Forgan & Co.
Bids—Expected to be received up to 10:30 a.m. (CDT)
on April 27 at 72 West Adams
St., Chicago 90, 111.

—

April 7 filed 41,159 shares of

Office—820 Plymouth
Bldg., Minneapolis, Minn. Underwriters—M. H.
Bishop
& Co.,
Minneapolis, Minn.; and B. I. Barnes, Boulder,

(which were sold last July) and
Underwriter—To be determined

1983

construction.

new

West

writer—None.

Fidelity Acceptance Corp., Minneapolis, Minii.

Jan. 26 (letter of
notification) 2,800 shares of 6% cumu¬
lative preferred stock, class E.
Price—At par ($25 per
share). Proceeds—To be available to subsidiaries and
reduce outstanding bank loans.

Commonwealth Edison Co. (4/27)
April 1 filed $50,000,000 of first mortgage bonds, series
Q, due May 1, 1984. Proceeds — To redeem $40,000,000

Proceeds

Office—240

May 1, 1979.

51

"

ufacture small

target pistol.

Office

—

510 S.

Continued

on

Fifth St.,

page

52

Thursday, April 15,

1954

People's Finance Corp., Denver, Colo.
of 6% 15-year convertible

sub¬

The Commercial and Financial Chronicle

—

Robert B. Fisher, 704

England Gas £ Electric Association
DsOr lu filecT32,126 common shares of beneficial interest
(par $8) being offered in exchange for common stock
of New Bedford Gas & Edison Light Co. held by minor¬
New

Las Vegas, Nev.

En Canto Drive,

if McGraw Electric Co.
April 12 filed 5,000 participations in company's profit
sharing plan for employees, together with 40,000 under¬

stock.

Underwriter

Pa.

Bradford,

10 East Corydon St.,
Winner 6c Myers, Lock

Office

purchase drill rig, etc.

—

—

Haven, Pa.

•

.

.

Republic of Panama
March

voting

American

filed

30

for

certificates

trust

1,000,000 shares of common stock (par one cent). Price
—To be supplied by amendment.
Proceeds—For ex¬

operations

ploratory drilling and development, and for

Underwriter—To be named by amend¬

and expenses.
ment.

if Mid-State Commercial Corp.,

Middletown,

Co.

(EDT)

on

rescind their

May 5.

Mexico Copper

New

(4/20)

Corp.

St., Chestnut Hill, Mass.
Underwriter
& Co., Inc., Boston, Mass.

mining expenses. Office—Carrizozo, N. M.,
Washington, D. C. Underwriter
—Mitchell Securities, Inc., Baltimore, Md.

if Prudential Finance Corp. of
Washington, D. C.

E. Capital St.,

1211

Yorker Magazine,

New

Inc.

2,400 shares of common
Price—$20.25 per share. Proceeds—To a
Underwriter — Silberberg & Co.,

(letter of notification)

Feb.,23

stock (par $1).

Co., Pasadena, Calif.
March 29 filed 600,000 shares of common stock (par 65
be offered first to stockholders and to gen¬
eral public. Price—$2 per share. Proceeds—To increase

(4/26)
March 1 filed 750,000 shares of common stock (par 10
cents).
Price—$2 per share. Proceeds—For capital ex¬
penditures, including payment of balance due on cer¬
tain claims and properties.
Underwriter—Israel & Co.,

cents)

to

Underwriter—None.

capital and surplus.

Mississippi Chemical Corp., Yazoo City, Miss.
26,666 shares of special common stock (par
—limited1 dividend) and $1,500,000 of certificates of

3an. 5 filed

participation (to be sold in multiples of $75—5% inter¬
est). Proceeds—From sale of these securities, together
with bank borrowings, are to be used for expansion of
facilities. Underwriter—None. Sales will be handled by
company

employees.

1''

'

(5/4)

Montana Power Co.

first mortgage bonds due 1984.
Proceeds—For construction program.
Underwriter—To
March 31 filed $6,000,000

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., Smith,
Bafney & Co., Blyth & Co., Inc. and Lee Higginson Corp.
(jointly); Union Securities Corp.
Bids—Expected to be
received up to 11 a.m. (EDT) on May 4.

-be determined by

(5/4)

Montana Power Co.

filed

31

March

preferred

cumulative

of

shares

60,000

stock

(no par). Proceeds — For construction program.
Underwriter—May be determined by competitive bid¬

Probable bidders:
White, Weld & Co.: Union
Securities Corp.; Kidder, Peabody & Co. and Blyth &

ding.

Bids—Expected to be received up to

Co., Inc. (jointly).
11

(EDT)

a.m.

March 31

on

filed

a

Probable

bidders:

competitive

by

Halsey, Stuart &

Co.

Inc.;

Inc., Boston, Mass.
$80,000 of 5% notes due
Feb. 1, 1974, and 2,000 shares of common stock (par
$10) to be sold in units of $400 principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties, land, construc¬
tion of theater and related expenses.
Office—60 State
(letter of notification)

3

Co., Boston, Mass.
if Northern Illinois Gas Co.

(4/28)

April 8 filed 400,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds — For
additions and improvements to property. Underwriters—
The First Boston Corp. and Glore, Forgan & Co., both
of New York.
•

States

Northern

Power Co.

1,219,856 shares

filed

16

March

(Minn.)
of common stock

(par

being offered for subscription by common stock¬
holders on the basis of one new share for each 10
$5)

held

shares

on

April 15; rights to expire on May 4. Price

Proceeds—To repay bank loans and for
Underwriter—The First Boston

program.

Corp., Blyth & Co., Inc., and
States

Northern

stock

filed

16

March

Kuhn, Loeb & Co. (jointly).,

Power Co.

(4/20)
preferred

(Minn.)

150,000 shares of cumulative

(par $100). Proceeds—To repay bank loans and
construction.
Underwriter—To be determined

for

new

by

competitive

Bids—To

May 12.

on

20 at

{400 shares); partners of Lehman Brothers and members
their immediate families (150,458); and The Lehman

New

Corp. (106,480).
planned.
Moreno

March 31

No general offer

Underwriter—None,

Uranium

(letter of

Corp.,

Denver, Colo.

notification) 750,000 shares of com¬

offered first to stockhold¬
ers.
Price—To stockholders, 20 cents per share, and to
public, 25 cents per share.
Proceeds—For drilling, sur¬
veys,
acquisition of properties and 1 working capital.
Office—731 Cooper Bldg., Denver, Colo.
Underwriter
—None.

Mountain States
March 5

Telephone & Telegraph Co.
487,248 shares of capital stock being of¬

filed

fered to stockholders of record
one new

on

the basis of

share for each four shares held; rights to expire

April 30.

•on

March 26

About 86.66% of the presently outstanding
by American Telephone & Telegraph Co.

stock is owned

Price—At

($100
advances from parent
par

tory

share),. Proceeds—To repay
company and for new construction.
per

Mining Corp. (4/19)
notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses. Office—608 Rood Ave.,
Grand Junction, Colo. Underwriter—Tellier & Co., Jer¬
sey City, N. J.
,
•

19

Tampa, Fla. (4/20)
April 1 filed 131,836 shares of common stock (no par)

the

to be offered for

Price—To be supplied by amendment. Proceeds
Underwriter—Morgan, Stan¬
ley & Co. and Coggeshall & Hicks, both of New York.

Fire

Insurance

Pennsylvania Gas Co.
Feb.

basis

of

ity stockholders of record March 19 on basis of one new
share for each 12V2 shares held; rights to expire on

Co.

(par $5) be¬
by stockholders of record

one

new

share

each

for

to

be

invested

qualified as legal investments.
Boston Corp., New York.
New Bristol Oils, Ltd.,

Dec. 18 filed

in

securities

April 26.
will

two

which

Underwriter—The

$15

*,

'
.

5

-

'

-

^

'/

March 12 filed 704,917 shares of common stock

common

seven

•

stock

a

$39.75
for

. .....

a -vr.r? (~

shares held;

share.

per

new

"•

'

'i.-q i A:
■

J V

rights to expire on April 19. Price—■
Proceeds—To repay bank loans and

dis¬
W.,
Underwriter—John C. Kahn Co.,

$2 each. Proceeds—To make loans and
Office — 1108-16th St., N.

count commercial paper.

Washington 6, D.

C.

Washington, D. C.
Public Service Co. of New Mexico
March 17 filed 138,656

shares of common stock (par $5)

being offered for subscription by common stockholders
of record April 1 at the rate of one new share for each

held; rights to expire on April 27. Price—$11.25

10 shares

share. Proceeds—For construction program. Under¬
writer—Allen & Co., New York.

per

Pumice, Inc., Idaho Falls, Idaho
March

29

notification)

of

(letter

1,170,000

shares

working capital.
Office —1820 N. Yellowstone, Idaho
Falls, Idaho.
Underwriter — Coombs & Co., Salt Lake
City, Utah.

Regal Plastic Co., Kansas City, Mo.
(letter of notification) 60,000 shares of common
stock (par 25 cents).
Price—At market (approximately
$4 per share) offered to warrant holders at 1 cent per
share and exercisable at $2 per share.
Proceeds — For

March 29

general corporate purposes.
&

Underwriter — S. D. Fuller

Co., New York.

if Republic Aviation Corp. (5/3)
April 14 filed 30,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To a

Underwriter—Smith, Barney & Co.,

selling stockholder.
York.

New

Resort Airlines,

March

Inc., Miami, Fla.

(letter of notification) 1,087,030 shares of
stock (par 10 cents), being offered for subscrip¬

17

common

tion

by stockholders of record March 15 on a l-for-2
basis; rights to expire April 16. Price — 25 cents per
share.
Proceeds—For working capital. Address — Box

International' Airport,

242,

Miami,

Fla.

Underwriter—

None.

Safeway Stores, Inc., Oakland, Calif.
17 filed 267,000

March

shares of 4.30% cumulative con¬

vertible

preferred stock (par $100) being offered for
subscription by common stockholders at rate of one
preferred share for each 13 shares of common stock held
on April 5; rights to expire April 21. Price—$100.35 per
share. Proceeds—To repay bank loans and for working

Pierce, Fenner &

capital. Underwriter—Merrill Lynch,
Beane, New York.
•

Scurry-Rainbow Oil Ltd., Calgary, Alta., Canada
15 filed 4,700,416 shares of capital stock (par 50
cents) being offered in exchange for the 2,670,000 shares
of Scurry Oils Ltd. stock on a share-for-share basis, and
in exchange for the 534,320 shares of Rainbow Oil Ltd.
stock on a basis of 3.8 shares of Scurry-Rainbow stock
for each Rainbow Oil share. The offer expires April 20.
Feb.

Underwriter—None.

i

if Shasta Water Co., San Francisco, Calif.
April 5 (letter of notification) 1,500 shares of common
stock (no par). Price—At market (not less than $16 per
share). Proceeds — For working capital. Office—1555
Barcroft
Ave., San
Francisco, Calif.
UnderwriterBrush, Slocumb & Co., San Francisco, Calif.

Signature Loan Co., Inc.
filed 58,916 shares of 7% cumulative convert¬

March 5

ible preferred stock (par $11)
for outstanding participating

close of business March 25

on

being offered in exchange
preferred stock held at
basis of two

new

The offer expires on

April 30. Subject to prior right of
exchange, 47,806 shares of the new preferred are to be
purchased by the below named underwriters and reoffered to public. Price—$11.50 per share. Proceeds—To
retire
participating preferred stock. Underwriters —»
Simon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y.; and Chace, Whiteside, West &
Winslow, Inc., Boston, Mass. Change in Name—Company
was

formerly known

Inc.

as

Federal Loan Co. of Pittsfield,

.

;

Signature Loan Co., Inc.
March 5 filed 29,458
shares

of

stock

(par.$l) being offered to holders of

TO

,

C;

First

<

V

and

<

convertible, preferred

29,458 shares of class A common

Boston

},

$11)

;

>

and Drexel & Co., Philadelphia, Pa.
i

shares of

7% stock for each old participating preferred share held.

(par

Underwriters—The

of

cents). Price—25 cents per share.
Proceeds—To complete plant, repay obligations and for
stock (par 10

common

stock

construction.

Corp., New York,

20% underwriting
......

\\




(no par)

being offered for subscription by common stockholders
of record April 2 at the rate of one new share for each

one-half

share of common and

•

1,000.000 shares of

MAT(is'fvM

share. Proceeds—For acquisition and working
Office—Warren, Pa. Underwriter—None.

Pennsylvania Power & Light Co.

are

First

Toronto, Ont., Canada

t^e,;Toronto Stock r.Exchange, with
1

National Fuel Gas Co., majority stockholder,
an
additional 28,554 shares. Price—

subscribe for
per

capital.

(par $1).
wJBriee—rTo be related to the bid price of the shares on
J.

(letter of notification) 17,526 shares of capital
(no par) being offered for subscription by minor¬

25

stock

debentures
cents) and
cent), the shares

Price—Of debentures, at par; of

share of class A stock.

May 5.

shares held; rights to expire on April 19. Price—$30 per
Proceeds—To be added initially to the company's

funds

subscription bv stockholders of record

April 20 at the rate of one new share for each five shares
then held (with^unsubscribed shares being offered to
certain officers and employees); rights to expire on

share.

general

Peninsular Telephone Co.,

For construction program.

for subscription

on

Uranium

Paradox

March 22 (letter of

Feb. 26 filed 200,000 shares of capital stock

March

drilling and development, and for operations and
Underwriter—To be named by amendment,

expenses.

Inc., Natick, Mass.
(letter of notification) 58,800 shares of com¬
mon stock (par $1).
Frice—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.

offered

Republic of Panama

voting trust certificates for 1,-

March 30 filed American

Natick Industries,

ing

Gill, Pope Co.,

—

York.

Pan-Israel Oil Co., Inc. of

March 10

Union

Underwriter

explore for oil and gas.

Underwriter—None.

National

up

it Paleo Oil & Gas Corp., Chickamauga, Ga.
April 5 (letter of notification) 299,800 shares of capital
stock (par 10 cents). Price—$1 per share. Proceeds—To

-

.»

(jointly); Smith, Barney & Co.
to 10:30 a.m. (CST) on April
231 So. La Salle St., Chicago, 111.
received

be

000,000 shares of common stock (par one cent). PriceTo be supplied by amendment.
Proceeds—For explora¬

stock (par 10 cents) to be

mon

Probable .bidders:, Lehman

bidding.

Brothers and Riter & Co.

Monterey Oil Co., Los Angeles, Calif.
Feb. 2 filed 257,338 shares of common stock (par $1).
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or
secondary distributions. Proceeds—To Lehman Borthers

\

Underwriter—H. C. Wainwright &

Mass.

St., Boston,

(EDT)

'

Corp.

North Shore Music Theater,

Feb.

White, Weld & Co.; Kidder. Peabody & Co., Smith, Bar¬
ney & Co., Blyth & Co., Inc. and Union Securities Corp.
(jointly).
Bids—Expected to be received up to 11 a.m.

_

Oil

York.

New

construction

determined

be

&

Minot Kendall

America,

50,000 shares of class A stock (par one
to be sold in units of one

stock units,

Uranium

American

North

like amount of 4%% debentures due

Underwriter—To

bidding.

•

—$14 per share.

(5/12)

Co.

$18,000,000 of debentures due 1979. Pro¬

ceeds—To refund

1978.

VU/

May 4.

Power

Montana

York.

New

—

April 9 (letter of notification) $100,000 of 6%
and 100,000 shares of common stock (par 10

selling stockholder.

Mission Indemnity

purchases.

if Porta Co., Inc., Chestnut Hill, Mass.
April 8 (letter of notification) 640 shares of $6 cumula¬
tive preferred stock (no par) and 640 shares of common
stock (no par) to be offered in units of one share of
each class of stock.
Price—$100 per unit.
Proceeds—
For manufacture of sporting goods.
Office — 48 Moody

April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬

.

—

registration of $164,000 of deben¬

is also seeking

pany

tures, notes and preferred and common stock heretofore
sold and holders thereof^are to be offered the right to

Underwriter—To be determined by

program.

Underwriter—None. Com¬

general corporate purposes.

(5/5)

Stuart
& Co.;
Boston
Bids—Tentatively expected to be received up to

a.m.

•

and

April 2 (letter of notification) 5,000 shares of 7% cumu¬
lative preferred stock.
Price—At par ($10 per share).
Proceeds
To reduce potes payable and for working
capital. Underwriter—Frazee, Olifiers & Co., New York.

a

People's Finance Corp., Denver, Colo.
2,904 shares of 6% cumulative preferred
Price—At par ($50 per share). Proceeds — lor

ceeds—For

(4/19)

New York

11

repurchase of out¬
Paul C. Kimball &

March 23 filed

competitive bidding. Probable bidders: Halsey,
& Co., Inc.; Kuhn, Loeb & Co.; Morgan Stanley
Shields & Co.; White, Weld & Co.; The First
Corp.

—

Co., Chicago, 111.

April 7 filed $25,000,000 of 35-year debentures due May
1, 1989.
Proceeds—To repay advances from American
Telephone & Telegraph Co., the parent, and for con¬
struction

Corp., Inc.,

Mediterranean Petroleum

Underwriter

standing securities.

stock.

Jersey Bell Telephone

New

loans or

bank

outstanding

reduce

New York.

(letter of notification) 2,800 shares of common
Price—At par ($100 per share).
Proceeds—To

9

Dec.

Proceeds—For

Financial Advisor—The First Boston Corp.,

April 24.

on

Orlean, N. Y.

Medina Oil Corp.,

Price—100% of principal amount.
general corporate purposes, probably to

ordinated debentures.

ity stockholders on the basis of 4% New England sharei
for each New Bedford share held. The offer will expire

stock.

lying shares of its common

March 23 filed $300,000

Underwriter—To be named by amendment.

Underwriter

Nev.

Las Vegas.

Proceeds—For general corporate purposes.

commission.

51

Continued from page

1

...

(1712)

52

5-

participating
d

Number 5316

Volume 179

..

The Commercial and Financial Chronicle

.

(1713)

53

a i:

Vulcanized Rubber & Plastics Co."

stock

preferred stock in units of one share Sf each cl?ss of
on the basis of one unit for each participating pre- ~

MarcJlJ23

ferred share held as of record March 25

mon

(with an over¬
subscription privilege); rights will expire on April 30.,
Price—$15 per unit to stockholders and $15.50 per unit to

Proceeds —"For expansion and working

public.

Under writers

ital.

—

cap¬

Simon, Strauss & Himme and A.

M. Kidder & Co., both of New York; William

N. Pope,

Inc., Syracuse, N. Y.; Chace, Whiteside, West & Winslow,
Inc. and Draper, Sears & Co., both of Boston, Mass.;
and Chilson, Newbery & Co., Kingston, N. Y.

.

-r

(letter of notification)

3,540 shares of comApril 5 to stockholders of

Underwriter—Previous financing Wag limlcrwritten
by

*

Blyth & Co., Inc.; New York.

stock (ilO par) offered on
record March 30 on a basis of oneNnew share for each
two shares of preferred or common stock
held; rights to
expire on April 19. Price—$25 per share. Proceeds—To

private.

28

* South Carolina Insurance Co.
April 8 (letter of notification) 15,COO shares of common
stock (par $10).
Price—$19 per share. Proceeds—For
capital and surplus.

#

Southern Counties Gas Co. of California

Lighting Corp., and for

Pacific

parent,

Underwriter

bidding.

—

At par

(5/4)

share). Proceeds — To repay demand note and for
working capital. Underwriter—None.

construc¬

new

(par 50 cents) to be offered in units of
share of stock.

one

one

Feb.

$50 deben¬

1,125,000
private sales of

Halsey, Stuart &

Probable bidders:

Co.

Inc.;

Merrill Lynch, Pierce, Fenner & Beane and Dean Witter
& Co.
(jointly); Blyth & Co., Inc.; The First Boston

Corp.; White, Weld & Co. Bids—Expected to be received
on May 4.

stock

and

&

&

Co. and Union Securities Corp., both of New
Offering—Postponed indefinitely.

York.

Co.

Dallas, Tex.
20, 1952 filed 1,125,000 shares of common stock (pai
Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union

principal amount. Proceeds—To improve facilities and
working capital.
Underwriter—None.

Securities

for
•

Standard

March

Uranium

Corp.,

Moab, Utah

1,430,000 shares of common stock ' (f>ar •
one cent),' Price—$1.25 per share. Proceeds—To exercise "
options on claims, and for general corporate purposes.
Underwriters—Gearhart

&

Otis,

Inc., New York, and

Crerie & Co., Houston, Tex.
Strevell-Paterson Finance

Feb.

filed

19

cents

640,000 shares

Corp.

of

stock

common

(par 50

being offered in exchange for the $300,000 par
of
authorized, issued and outstanding capital

value

stock Of Strevell-Paterson Finance Co.

on

the basis

(a)
5,000
(par $10) of

of 13 shares Of Corporation stock for each of the

shares
the

of

cumulative preferred

5%

Company, and

stock

23 shares of Corporation stock
for each of the 25,000 shares of $10 par common stock
of the

(b)

Offer expires Oct. 31. Underwriter—
Statement effective

company.

None.

Office—Salt Lake City, Utah.
.March 30.

ic TelAutograph Corp.
April 8 (letter of notification)
.of

shares

of

an

,

undetermined number

(par $5) to be offered for
subscription by employees under a stock purchase plan
up to 5% of his annual earnings rate.
Office—Mutual
Bldg., Richmond, Va.
•

Telephone Bond & Share Co. (4/23-27)
March 31 filed 325,000 shares of common stock (par $1)
to be offered for subscription by stockholders on the
/basis

of

one

new

share for

each

shares held about

two

.April 23-27 for a 14-day standby. Price—To be supplied
By amendment. Proceeds—For financing of company's
•subsidiaries.
handle

Underwriters

books); White,

.& Co., Inc.
*•

Temco

Aircraft

—

Lazard

Freres

&

Co,

(to

Weldj & Co.; and W. C. Pitfield
(4/21-22)

Corp

;March 30 filed 300,000 shares of common stock (par $1).
Price — To be supplied by amendment. Proceeds — To
three selling stockholders.
"Noel & Co., New York.

Underwriter

—

Van Alstyne,

ic Texas State Oil & Gas Co., Corpus Christi, Texas
April 7 (letter of notification) 599,000 shares of common
sstock (par 10 cents).' Price—50 cents per share.
Pro¬
ceeds

—

For

general

corporate

Wilson Bldg., Corpus

Christi, Tex.
Co., New York.

CSherman &
Textron

Office

purposes.

Underwriter

—

—

603

L. D.

of

to be offered to holders of the 978,342 shares

common

stock of American Woolen Co.

-one-fifth of
common

a

share of preferred

25

on

New

York.

Boston Edison Co.
Feb.

Offering—Post¬

v--fe¬

the basis of

and one-half share of

stock plus $5 in cash for each American Woolen

share up to and including April 19. From April
May 20, the cash consideration will be $3.50; from
May 21 to June 21, $2; and for June 22 to July 20, no
cash. Dealer-Manager—Blair, Rollins & Co. Inc., New
•common

20 to

"York.

Trip-Charge, Inc., Pittsburgh, Pa.
17 (letter of notification) 22,428 shares of 7%
preferred stock (par $10) and 7,476 shares of common

JMarch

and

its subsidiaries.

man

Underwriters—

•

Co. Inc.

15

filed

60,000 shares of 4.40%

cumulative

(par $100), of which 47,370 shares

first offered in exchange for outstanding

preferred

stock

on

change offer will
share.

Proceeds—To
new

share-for-share

a

expire

April

on

pre¬

Underwriters

—

Central

March 8 it

ex¬

inite

Westinghouse

to

2

filed

certain

other

•*-#'.

be

executive

employees

bonds

of

Chemicals, Inc.
(letter of notification) 7,500 shares of common
(par $1).
Price—$2,371/2 per share.
Proceeds—
To selling stockholder.
Office — Sayreville, N. J. Un¬
derwriter—Graham, Ross & Co., Inc., New York.

ten

April 28

shares

property

the basis of

held

(with

an

one

privilege).
Proceeds—For

ceeds

Underwriter—

expansion and working capital.

«£>, Pa.
iiave
rshare

Office—Fifth and Hamilton,

•

(5/4)
April 7 filed $20,000,00(Lfirst mortgage bonds due 1984.
Proceeds—For property additions and
improvements.

Underwriter—None.

preemptive

subscribe

for

pf each class of stock at $12.50

per

Utah Power &

right

Common stockholder^ will

to

units

of

one

unit.

-

—

i

struction.

Underwriters—To

be

determined

by

com-

bidders: Halsey, Stuart &
t Co.
Inc.; White, Weld & Co. and Stone & Webster Se¬
curities .Corp.
(jointly); Union Securities Corp. and
tSmith, Barney & Co (jointly); Lehman Brothers and
TBear, Stearns & Co. (jointly); The First Boston Corp.
rand Blyth & Co., Inc. (jointly); Kidder, Peabody & Co.;
-"''Salomon Bros. & Hutzler.. Bids—Tentatively expected
*t£o be received up to noon (EDT) on April 28 in Room
Probable

•'2033, Two Rector St., New York, N. Y.




To

1, 1978 from competitive bidding. Pro¬
bank loans and for capital improve¬

repay

Underwriters—May be determined by competi¬
tive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.
and Union Securities Corp.
(jointly); Kidder, Peabody
& Co. and White, Weld & Co.
(jointly); The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane. On April
Continued

Probable bidders:

Halsey, Stuart & Co. Inc.; Glore, ForCo.; Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. ,& Hutzler
(joiptly); Union Securities
Corp. and Harriman Ripley & Co. Inc. (jointly); The
First Boston Corp.; Equitable Securities
Corp.; Merrill
Lynch, Pierce, Fenner & Beane. Bids—Tentatively ex¬
pected to be received up to 11 a.m. (EDT) on May 4.
gan

on

page

54

&

NIGHT t ® »

Prospective Offerings

Conveniently located in the heart of New York's

Alabama Gas Corp.
March 1 it was announced stockholders will vote
April
20 on approving an increase in the authorized common

great financial

district, Pandick Press, Inc. is "open for business" 24 hours
7

days

a

a

day,!

week.

stock

Light Co.

(4/28)
!Feb. 16 filed $15,000,000 of first mortgage bonds due
*1984.
Proceeds—To repay bank loans and for new conIjpetitive bidding.

application
issue of $6,000,000 collateral trust

Underwriter—To be determined by competitive
bidding.

Business

Pittsburgh

not available at this time. Pro¬

ments.

bonds due Nov.

Wisconsin Electric Power Co.

(par $1) to be offered in units of three preferred
•.shares and one common share.
Price—$33 per unit.
^Proceeds—For

are

Chicago Great Western Ry.
26,.,the ICC dismissed the company's

rfor exemption of an

-stock

-—Credit cards.

offering

Feb.
>

oversubscription

be supplied by amendment.
additions and improvements.

None.

share for. each

April 1 reported that

bidder?;
Blyth & Co., Inc. and Kidder, Peabodv & Co. (jointly)^
Harriman Ripley & Co. Inc.; Coffin &
Burr, Inc.

(4/28)

new

on

ceeds—For construction program. Underwriter—May be
determined by competitive bidding. Probable

common stock (par $10)
subscription by stockholders of record

on

Gas Co.

Proceeds—To repay bank loans and for

Wyman, President,

April 7 filed 421,492 shares of
about

Electric &

Maine Power Co.

details of the

stock

ployee stock option plan.

to be offered for

Illinois

the company expects to sell $5,000,000 of convertible
pre¬
ferred stock late in the second quarter of 1954, but that

(par $1) to
employees under an em¬

Power Co.

$3,500,000 of preferred stock in

Central

Winn & Lovett Grocery Co.

Electric

fall and

William F.

•stock

common

consideration,'but del*

new construction.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities
Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
"

Wilson Organic

Wisconsin

this

mortgage bonds.

March 18

be offered for sale to company

Corp.
*
mortgage bonds and

Underwriter—Kidder, Peabody & Co., New York.

Central

subsidiaries; and 200,000 shares of said
offered under employees' stock plan to em¬

April 13 filed 30,418 shares of

under

Dec. 9 it was announced company intends to offer and
sell around the middle of 1954 an issue of
$4,000,000 first

ployees of company and six subsidiaries.
••

now

plans will depend

1955.

company and its

stock to

announced issues of
are

.

& Electric

securities markets.

Electric

and

was

000

April 8 at 20 North

483,190

officers

a

Hemphill, Noyes & Co.

the

Corp., Pittsburgh, Pa.
shares of common stock (par
$12.50) to be offered under restricted stock option plan
March

June.

largely upon developments ill"*
Construction cash requirements
are estimated at
$17,300,000 for 1954-1955. Company is
reported to be considering the issuance of about $9,000,*

Harriman

& Co. Inc.; Union Securities Corp.; Lehman
Brothers; Stone & Webster Securities Corp. Bids—To be
on

and

.

approved

Hudson Gas

preferred stock

per
and to

Ripley

received up to 11:30 a.m. (CST)
Wacker Drive, Chicago, 111.

Offering—Tentatively expected in

Co. Inc. and

Price—$105

redeem $6 preferred stock

construction.

issue

proposal to increase
authorized common stock (par
$10) from 1,600,00ft
shares to 5,000,000 shares and the authorized
preferred
stock (par $50) from
181,855 shares to 800,000 shares
to provide for further possible
financing. Proceeds-*
For expansion, etc. Underwriters—Harriman
Ripley St

being

The

plans to

company

the

$6 cumulative

basis.

19.

are

announced

Carrier Corp.
Feb. 23 stockholders

West Texas Utilities Co.

ferred stock

was

$15,000,000 of first mortgage bonds due 1984L

Brothers; Kuhn, Loeb & Co. a»d A. C. Allyn & Cd.
(jointly); White, Weld & Co.; Harriman Ripley &

Inc.

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.;
Lehman Brothers; W. C. Langley & Co.;
Kidder, Pea-S
body & Co. and White, Weld & Co. (jointly); Kuhn.
Loeb & Co.; Harriman Ripley & Co. Inc. Bids—To be
received up to 11 a.m. (EST) on April 20 at 50 Broad
St.,
New York 4, N. Y.
March

it

Proceeds—For construction program.
Underwriters—To
be determined by
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Lefyf>

(4/20)
;v
$12,000,000 first mortgage bonds, series
1, 1984. Proceeds—For construction pro¬

gram of company
To be determined

15

sell about

filed

P, due April

Price—To

Incorporated, Providence, R. I.

Feb. 8 filed 195,668.4 shares of 4% preferred stock, series
IB (par $100) and 489,171 shares of common stock (par
50 cents)

March

finance

stock

common

of

west Penn Power Co.

(4/22)

filed

15

cents).

Corp., both
poned indefinitely.

Inc.; The First Boston Corp.; Lehman
Brothers,
Webster Securities Corp. and
White, Weld &
Blyth & Co., Inc., Equitable Securities

&

(jointly);

Corp. and Central Republic Co. Inc. (jointly); Merrill
Lynch, Pierce, Fenner & Beane and Union Securities
Corp. (jointly).

Nov.
50

Co.

Stone

West Coast Pipe Line Co.,

Spokane Seed Co., Spokane, Wash.
March 8 filed $600,000 of 5% convertible debentures due
June 15, 1964, to be sold to pea growers located in East¬
ern
Washington and Northern Idaho. Price—100% of

reported Cities Service Co.
may sell its

—

—

Weld

was

•

Co.

Feb.

$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters
White,

common

it

Gas

Arkansas Power & Light Co.
8 it was reported
company plans to sell,
probably
in August, an issue of about
$7,500,000 first mortgage
bonds due 1984.
Underwriters
To be determined
by
competitive bidding. Probable bidders:
Halsey, Stuart

Price—To be supplied by

additional shares of

22

Louisiana

holdings of 1,900,000 shares of this
company's stock 11£
sold at competitive
bidding, bidders may include Smith
Barney & Co. and Blyth & Co;, Inc.
(jointly).

amendment. Proceeds—From sale of units and

determined by competitive

To be

•••;

.

Arkansas

West Coast

ture and

April

sidiaries for their construction
programs. Underwriter—

None.

($5

per

Nov.

April 5 filed $15,000,000 first mortgage bonds, series A,
due 1984.
Proceeds—To repay advances received from
tion.

—

announced stockholders will vote

ably be made to present stockholders:
Proceeds—To sub¬

Pipe Line Co., Dallas, Tex.
20, 1952 filed $29,000,000 12-year 6% debentures
due Dec. 15, 1964, and 580,000 shares of common stock

Address—P. O. Box 1199, Columbia,

Underwriter—None.

S. C.

Price

was

on

increasing the authorized common stock from
4,000,000 to 5,000,000 shares to enable the
company to sell
additional shares when
necessary.
Offering will prob¬

common

stock to be offered to stockholders.

,

March 11 it

•

if Ware Industries, Inc., Ware, IVIass.
April 12 (letter of notification) 7,000 shares of

Of pte-

Debt financing may be

American Natural Gas Co.

purchase two injection molding presses and for working
capital. Office—261 Fifth Ave., New York 16, N. Y.
Underwriter—None.

Registration

ferred expected about
April 15.

(par $2) from 1,000,000 to 2,000,000 shares. South¬
ern
Natural Gas Co., parent, owns about 99% of the
presently outstanding common stock. There are no plans
for immediate financing.
Underwriter—None.
»
Allis-Chalmers

NIGHT & (DlrDY Service
guarantees the

is one

of the

reasons

"Printed

-

Manufacturing Co.

(5/6)

March 23 the company announced it is preparing a

$50,-

000,000 financing program which will include the issu¬

'andicfrpress. Inc.

and sale of

350,000 shares of new $100 par convert¬
(carrying a dividend rate between
3%% and 4^4%) and $15,000,000 of debentures or notes.
ance

ible preferred stock

Proceeds

To

be

added

to

general funds.

Meeting—
Stockholders will vote May 5 on a proposal to increase
the authorized preferred stock (par $100) from 259,481
shares (118,854 shares outstanding) to 618,854 shares.
—

Established 1925

97 THAMES ST., NEW YORK *
WOrlh 4-2900

by Pandick**'

finest and most complete printing service available*.
; 1
•
}

NY 1-3167

71 CUNTON ST., NEWARK, N. JL
MArWt 3-4994

The Commercial and Financial Chronicle

(1714)

54

Continued from page
last year, the road

23,

Florida

53
rejected the only bid made of
Halsey, Stuart & Co. Inc.

for a 5%% coupon by

98 05%

Securities Corp. (jointly).

and Union

Western Ry. (4/15)
by the company up to noon (CST)
April 15 at 400 West Madison St., Chicago, 111., for
the purchase from it of $4,695,000 equipment trust cer¬
tificates to be dated May 1, 1954 and to mature in 15
equal annual instalments to May 1, 1969. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair, Rollins & Co. Inc.
Chicago & North

Bids will be received
on

* Clark Oil & Refining Corp.
April 12 it was reported this company (formerly Petco
Corp.) plans early registration of 50,000 shares of con¬
vertible preferred stock (par $20) and between 750,000

1,000,000 shares of common stock. Proceeds—For ex¬
pansion. Underwriter—Loewi & Co., Milwaukee, Wis.

to

Colonial
March

12 it

Inc.
reported that, in connection with pro¬

was

was

Colo¬
$21,500,-

announced company has applied to

rado P. U. Commission for

natural

gas

authority to build a

pipe line, in Colorado, to be financed

through sale of about 70% of bonds and 30% of equity
capital. John R. Fell, a partner of Lehman Brothers, is
a

Vice-President.

•

Columbia Gas System, Inc.
March 5 it was announced that company plans
June to issue and
and

an

early in

sell $40,000,000 of senior debentures

of senior debentures later

additional $40,000,000

in 1954.

Proceeds—For construction expenses and t6 re¬
loan of $25,000,000. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
pay

a

bank

Connecticut Light & Power Co.
Dec. 7 it was reported company plans to raise between

$10,000,000 and $20,000,000 in 1954 from sale of bonds
and stock.
Underwriters—For common stock: Putnam
&

Co.; Chas. W. Scranton & Co., and Estabrook & Co.
placed privately.

Bonds may be

Consolidated Natural Gas Co.
Jan. 27 it

it

&

Light Co.

reported

was

Foote Mineral Co.,
Feb. 20
22

on

it

may

company

,

was

(5/25)

reported company plans to issue and sell

Duquesne Light Co.
Philip A. Fleger, Chairman, stated that about
$24,000,000 of new capital will be required during 1954
and that plans for obtaining the necessary funds will be
March 8,

announced in the near future.

Underwriters—To be de¬

termined by competitive bidding.
f6r bonds—Halsey, Stuart & Co.

Probable bidders: (1)
Inc.; The First Boston
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co., Union
Securities Corp. and A. C. Allyn & Co., Inc. (jointly);
White, Weld & Co.; Drexel.& Co. and Equitable Secu¬
rities Corp. (jointly); Harriman, Ripley & Co., Inc. (2)
For common stock—Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Bljrth & Co. Inc. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Stone & Webster Securities Corp.; The First
Boston Corp. and Lehman Brothers (jointly); Carl M.
Loeb, Rhoades & Co. and Wertheim & Co. (jointly).
Eastern Utilities Associates
March 8 it was announced company plans the sale not
later than Oct. 1, 1954 of about $2,000,000 of common

stock, probably first to stockholders.
pay b$nk loan.

Proceeds—To

Thursday, April 15, 1954

& Co., Salonjon Bros. & Hutzler and Union Securities
Corp. (jointly); Glore, Forgan & Co.; Blyth & Co., Inc.
and The First Boston
Corp. (jointly); White, Weld & Co.
and Shields & Co.
(jointly); Harriman Ripley & Co., Inc.,
Equitable Securities Corp. Meeting — Stockholders will
vote April 27 on
approving new financing.

Kansas-Nebraska Natural Gas Co., Inc. (5/3)
24 it was reported
company plans to issue and
sell 10,000 shares of 5% cumulative
preferred stock (par
$100) and 85,909 shares of common stock (latter to stock¬

will vote April

increasing the authorized common stock (par $2.50)

holders

a
1-for-10 basis).
Proceeds—For expansion
Underwriters—The First Trust Co. of Lincoln,
Neb.; and Cruttenden & Co., Chicago, 111.
on

from 500,000

shares to 1,000,000 shares. There are pres¬
ently 276,088 shares outstanding and an additional 43,217
shares are reserved for conversion of debentures and

program.

the remaining 180,695 shares are available for the em¬
ployees' stock bonus plan. The proposed increase in
capitalization is necessary to provide additional shares
to finance the continued growth of the company, or if it
seems advisable for stock dividends or a stock split.
Un¬

if Keystone Portland Cement Co.
April 7 it was announced that following
split-up of the

derwriter—Estabrook & Co., New

investment bankers headed by Shields &

•

General

a four-for-one
stock, a public offering will be
presently outstanding 136,434 common
shares, of which 82,274 shares are owned by a group of

made.

March 29 stockholders

of $4,000,000 convertible debentures
due 1984 (with warrants). Underwriter—Paine, Webber,
near

future,

common

Curtis.

unissued stock

be

to

used

considered

when

Long

Public Utilities Corp. (5/12)
/
March 8 it was announced company plans to offer about

606,576 additional shares of

common

stockholders

one

the basis of

on

on

about

or

stock

new

(par $5) to

share for each 15

May 12; rights to expire June 2.

Price—To be determined just prior to the offering date.
Proceeds—To be invested in the domestic subsidiaries.

Underwriter—None, but Merrill Lynch, Pierce, Fenner
& Beane may act as clearing agent.

Granby Consolidated Mining, Smelting
& Power Co., Ltd.
March 23 it

announced that the company may

was

find

to

issue

" '

r

■

Indiana & Michigan Electric Co.
Jan. 27 it

announced company

plans to sell around
November, 1954, an issue of about $16,500,000 first mort¬
gage bonds due 1984 and 40,000 shares of cumulative
preferred stock (par $100).
Underwriter — To be de¬
termined by competitive bidding.
Probable bidders: (1)
For bonds—Halsey, Stuart & Co. Inc.; Union Securities
Corp., Goldman, Sachs & Co. and White, Weld & Co.
was

(jointly); The First Boston Corp.; Harriman Ripley &
Co.

Inc.; Kuhn, Loeb & Co.; (2) for preferred—The First
Corp.; Smith, Barney & Co.; Lehman Brothers;
Union, Securities Corp.
Boston

^International Great Northern RR.

(4/15)

Bids will be received by the trustee of the company in

its

common

stock

authorized

,

,

»

■

plans later this yOar
mortgage bonds

and

construction program, which

will require

additional

determined

$70,000,000
bonds.* to be

financing.
Underwriter—
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); Smith, Barney & Co. Underwriters for com¬
mon stock may be Blyth &
Co., Inc., The First Boston
Corp. and W. C. Langley & Co. and associates.
v

Louisville & Nashville RR.

Nov. 12 it
sell

an

was reported that the company may issue and
issue of bonds late in. 1954. Proceeds—To retire

$24,610,000 Atlanta. Knoxville & Cincinnati Division 4%
bonds due May 1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler (jointly).

Metropolitan Edison Co.
Dec. 16 it

was

reported company may sell in 1954 about

$3,509,000 first mortgage bonds due 1984.

Proceeds—For
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Kidder, Peabody & Co.
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬

construction program.

Bros. & Hutzler

Dec.

interest.

increase the

announced company

For

149,739.35 of $5 par value. As the company's shares are
selling on the New York Stock Exchange at about
$7.50 per share it is necessary that stockholders on April
13 approve issuance of the unissued shares before they

an

was

about

mon

can
be sold at a premium.
Proceeds—To be used for
financing Granduc Mines, Ltd., in which Granby owns

to

Lighting Co.

additional

to finance

it necessary to sell a bond issue or to issue the balance
of its
unissued common shares, of which there are
now

Island

March 4 it

advis¬

General

voted

from

writer—The Fitst Boston Corp., New York. „' "

able

by the board of directors for corporate purposes in¬
cluding, but not limited to, the acquisition of new busi¬
ness, financing of new construction, payment or prepay¬
ment of outstanding indebtedness, restoration of working
capital, granting of additional employee stock options
under the plan approved by stockholders in 1949, and
for additions to working capital.
Underwriters — The
First Boston Corp. and Tucker, Anthony & Co.

stock

2,000,000 shares (1,867,125 shares
outstanding) to 3,000,000 shares. There are no imme¬
diate plans to issue any of the additional stock. Under¬

ic General Precision Equipment Corp.
April 2 it was announced stockholders will vote April
27 on increasing authorized convertible preference stock
from 15,000 to 25,000 shares; the authorized preferred
stock from 150,000 to 250,000 shares and the authorized
common stock from
1,500,000 to 2,000,000 shares. Pur¬
pose—The increases in stock are being sought so that
the company will have available additional authorized
and

common

are

Koppers Co., Pittsburgh, Pa.

/March 22 it was reported company plans registration,
in

There

Co., New York.
Offering—Tentatively expected early in May.

York and Boston.

Acceptance Corp.

shares held

$25,000,000 of debentures due 1979. Proceeds—To pur¬
chase stock of company's operating subsidiaries, who in
turn will apply these proceeds for construction. Under¬
writers — To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White,
Weld & Co. and Paine, Webber, Jackson & Curtis (joint¬
ly); Morgan Stanley & Co. and The First Boston Corp.
(jointly). Bids—Expected to be received up to 11:30
a.m. (EDT) on May 25.

.

March

Philadelphia, Pa.

announced stockholders

was

Jackson &

Colorado-Western Pipeline Co.

000

25

Fund,

posal to mutualize this Fund, a block of capital stock
may be offered publicly through Stone & Webster Se¬
curities Corp., New York, and associates.
March 5 it

Power

later this year
issue and sell about $15,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane; Glore, Forgan & Co. and Harriman Ripley &
Co. Inc. (jointly).

Jan.

.,

(jointly).

Missouri Public Service Co.
28

it

was

announced

company plans to issue and
stock and borrow $18,000,000
from banks in connection with proposed acquisition of
1,500,000 shares of common stock of Gas Service Co. of

sell

$14,000,000 of

common

Kansag City, Mo., at a total cost of $32,000,000. Following consummation of proposed merger of the two com¬
panies, it is planned to sell $9,000,000 of first mortgage
bonds; $2,500,000 of debentures and 65,000 shares of
preferred stock (par $100).
Proceeds — To retire bank
loans/

Underwriter—For

common

stock

(now in regis¬

tration): Kidder, Peabody & Co.
Montana-Dakota Utilities Co.
March' 17 it

was

reported that company plans to issue

and

sell late this year some additional first mortgage
bonds/ Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch; Pierce, Fenner'& Beane (jointly); Blair, Rollins
& Co. Inc.

Montreal Transportation Commission
March

Dec.

April 15 for the
the company of $1,845,000 equipment
trust certificates, series FF, dated May '1, 1954, and to
mature $123,000 annually from May 1, 1955 to 1969, in¬

crease

clusive.

sey,

re¬

Fidelity Trust of .America, Dallas, Tex.
22 it was announced that company
plans to in¬
its capitalization to $3,000,000, following which

a

registration statement will be filed with the SEC to

authorize

a

new

offering.

There

are

presently author¬

ized 35,000 shares of no par value, of which
33,750 shares
will be outstanding
following present offering and sale
or

30,000 shares of common stock at $10
per share.
Business—A discount and lending organization. Office-

Fidelity Bldg., Dallas, Tex. Underwriter—May be Boylen, Kasper & Co., Dallas, Tex.
T

First National Bank of Toms River, N. J. (5/14)

Jan 12 it

was

announced bank plans to offer for sub¬

scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock
(par $10) on the
basis of one new share for each 26 shares held; rights to
expire on June 16, Price—$50 per share. Proceeds—To
increase capital and surplus. Underwriter—None.

Florida Power Corp.
was announced that the

March. 27, it

financing late this

summer

company plans new
which would require issu¬

of common stock and
probably $10,000,000 of bonds.
Proceeds — For new construction. Underwriters — For

ance

stock (first to common
stockholders), Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly). For
bonds, to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Lie.; The First Boston Corp.; Lehman Brothers; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
common

Beane

(jointly). Common stock was increased by stock¬
on March 25 from
2,500,000 shares to 5,000,000
shares, and the preferred stock from 250,000 shares to
500,000 shares.
holders




St.

Louis, Mo.,
purchase from

up

to

noon

(CST)

on

Probable bidders:

Salomon Bros. &

Halsey, Stuart & Co. Inc.:
Hutzler; Kidder, Peabody & Co.; Blair,

Rollins & Co. Inc.

if Iowa Public Service Co.
/Vpril 9 company applied to the Federal Power Commis¬
sion for authority to issue and sell $7,500,000 first mort¬
gage bonds to mature
a

May 1,1984. Proceeds—To redeem

like amount of 4% bonds sold last Jurie.

—To

be

Underwriter

determined

by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Equitable
Securities Corp.; White, Weld & Co.; Kidder, Peabody
& Co. and Blyth & Co., Inc. (jointly).

Jersey Central Power & Light Co.
16 it was repbrted company
tentatively plans to
sell in 1954 about $6,000,000 first mortgage

Dec.

Issue and

bonds due 1984.
Underwriters

—

Proceeds

For construction program.
To be determined by competitive bid¬
—

ding, Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Glore, Forgan & Co.;
Kidder, Peabody &
Co.; Union Securities Corp., Salomon Bros. & Hutzler
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
The First Boston
Corp.; Lehman Brothers.
Offering—
Expected in June.
Kansas City Power &
March 8 it

Light Co.

announced that company may

22

it

was reported
Commission may issue and
$30,000,000 to $35,000,000 bonds for refund¬
ing purposes. Underwriter—If through competitive bid¬
ding, probable bidders will include: Shields &' Co., Hal¬

sell around

Stuart & Co. Inc. and Savard & Hart (jointly);
Kuhn, "Loeb & Co., Glore, Forgan & Co. and Salomon
Bros. Sc Hutzler
(jointly); Lehman Brothers; White,
Weld & Co., Union Securities Corp., and Blyth & Co.,
Inc. (jointly); Dominion Securities Corp.
National Fuel Gas Co.

April

| it was reported company plans to offer about
400,000 shares of capital stock (no par) for subscription
by stockholders later this year or early next year, sub¬
ject to Approval on April 29 of a proposal to increase the
authorized capital stock from 4,000,000 to 6,000,000
shares.| Proceeds—For

new construction. UnderwriterDillon,? Read & Co., New York, handled secondary offer¬
ing in 1943.
New

Jersey Power

Dec. 16. it

was

& Light Co.
reported this company tentatively plans

issue and sale in 1954 of about $3,000,000 first,
mortgage
bonds due 1984. Proceeds—To repay bank loans

apd for
construction. Underwriters—To be determined
by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co. and Lehman Brothers
(jointly); Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, fenner & Beane.
new

New

Orleans

Feb. 8 it

Public Service

Inc.

sell in the
latter part of 1954 $16,000,000 first
mortgage bonds. Proceeds
To repay bank loans and for new construction.

reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive

Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Bear, Stearns & Co.

bidding;; Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harrunah-Ripley & Co. Inc. (jointly); Lehman Brothers;

was

—

(jointly); Kuhn, Loeb

was

Volume 179

Number 5316 ;.

The Commercial and Financial Chronicle

.

(1715)
Kidder, Peabody & Co. and Stone & Webster Securities

Public Service Electric & Gas Co.

Corp. (jointly); The First Boston Corp.; White, Weld &

•

York State

New

Electric & Gas

Corp.* (5/18)

but

$20,000,000 first

bank loan and to finance riew construction. Underwriter

Ripley & Co. Ipc., New York.

March 31 it

announced

was

Inc.; Blyth & Co.,

Offering—Expected in May.

Northern Natural Gas Co.

Nebraska

announced company

was

Railway

.365,000 shares of
holders

the

on

Commission

common

basis

of

has applied to the
authority to issue

for

stock to

be

offered to stock¬

share

for each nine
with sale scheduled for
May or June.
It
thereafter expects to market
$24,000,000 of sinking fund
debentures due 1974.
Proceeds—For construction
one

new

shares held

pro¬

gram.

Underwriter—Probably Blyth & Co., Inc., New

York and San Francisco.

★ Northern Ohio Telephone Co.
April 5 the Ohio P. U. Commission authorized
company
;tp offer to its stockholders 117,500 additional shares of
/common stock at not less than $20
'

share.

per

Unsub-

scribed shares to be offered to
public.

Northern States Power Co.

.

bonds due 1984 in October of 1954.

Underwriters

—

To

/ be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers and
Riter & Co. (jointly); Smith, Barney &
Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
v

Securities

Corp.

and

Union

Securities

•*

Corp.

stockholders
and

approved

300,000

shares

issuance
of

of

preferred

"

•

$20,000,000
stock

$50) and increased the authorized common stock
3,404,135 shares to 5,500,000 shares. Proceeds—To

(par

* Pacific Gas & Electric
V

;
r

Co.

April 13 the directors authorized the^ale of $65,000,000
first and refunding
mortgage bonds, series X, due June
1, 1984. Proceeds—To refund $63,040,000 4% bonds due
1984. Underwriter
To be determined by competitive
—

bidding. Probable bidders:

The

First

^ Pembina Pipe Line Co.
April 14 it was announced
the

right

line to

to

obtain

a

(Canada)
company

permit to

has been

build

a

granted

72-mile

1
,

Alberta to Edmonton.
Financing will be handled
jointly by Mannix Ltd. of Calgary, Dome Exploration
{Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades

& Co. of New York.
'

Pennsylvania Glass Sand Corp.
Feb. 26 it

was

announced stockholders will vote

April 27
increasing the authorized common stock from 740,000
shares to 1,000,000 shares. No immediate
plans to issue
on

1

of the additional stock have been announced. Underwriters—Harriman Ripley & Co. Inc., and
Smith,
Barney & Co., New York.
any

!

Pioneer Natural

Gas Co.

March 26, P. C. Spencer, President of Sinclair Oil
Corp.,
announced that Sinclair has under formulation
plans for
the

disposal of its holdings of 769,721 shares of Pioneer
stock and 384,860 shares of
Westpan Hydrocarbon Co.
stock.

Underwriter—Union Securities Corp., New York,
underwrote recent sale of Sinclair's
holdings of Colorado

Interstate

Gas

•

Service Co.

Public

April 12 it

Co.

stock.
of Colorado

(jointly).




$219,000,000 of first mort¬
Underwriters—Lehman Brothers and Wood,
Gundy & Co., Inc., both of New York.
Transcontinental Gas Pipe Line
Corp.
March 16 it

reported company plans later this year
financing to repay temporary'
bank loans necessary to
pay for new construction esu-*"
to

do

was

some

permanent

$11,000,000 for 1954. Underwriters—
White, Weld & Co. and Stone & Webster Securities
Corp., both of New York.

may

Tri-Continental Corp.
March 30 stockholders voted to
reclassify 500,000 shares
of presently authorized but unissued
$6 cumulative pre¬
ferred stock, without par

possible

Paper Co.
it

announced

was

authorized

$25,000,000 to $50,000,000.. The
has no specific financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953/ was underwritten

plans

>

„

March

;

sell

was

Canada, Ltd.

announced company

offering of its

common

1

Carolina
it

was

Proceeds—To

pay

for

Feb.

has

it

was

announced

authorized
stock

ordinated

West Texas Utilities Co.
March 8 it

was announced
company plans to refund! its
$5,500,000 bank loan in the Spring of 1955 through the
issuance and sale of first mortgage bonds. Underwriter—

be

& Co.

Peabody & Co.

&

Electric

by competitive bidding. Probable bid¬

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and

Salomon

Pierce,

Bros.

&

Fenner

&

Hutzler

•

(jointly);

was announced
company plans to issue and
September, 1954, $10,000,000 first mortgage bonds.
refund bank loan of $7,500,000 and for

Underwriters—To

be

Equitable

Glore, Forgan & Co.; Kuhn, Loeb
Brothers
Boston

March
from

Proceeds—To

construction.

Beane;

Merrill

Lynch,

Securities

Corp.;

& Co. and Lehman

(jointly); Kidder, Peabody & Co.; The First

Corp.

.

.

,

1

/

Western Pacific RR. Co.

Co.

March 8 it
sell in

4^

"

noon

Gas

Blyth

Oregon. Underwriter—Eastman, Dillon & Co., New York.

ders:

received 'by the
company in
<EDT) on April 29 for the pur¬
$7,905,000 equipment trust certificates,
dated April 15, 1954 and due annually to

Southwestern

—

a natural gas
pipe line from tho
Canadian Peace River field to western
Washington and

(4/29)

April 1, 1969. Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler; Kidder,

Underwriter

bonds; and $24,440,000 in sub¬
long-term debentures and 4,100,000 shares of
to be sold to the public.
Proceeds—To

To be determined

NN,

com¬

bank loans

repay

finance construction of

Loeb & Co.; The First Boston
Corp.; Merrill Lynch,
Pierce, Fenner & Beane; White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co. Offering
—Expected in May or June.

serlfes

Proceeds—To

stock

common

England Telephone Co.

to

Commission

14 it was announced that
company now plans to
issue $29,000,000 in l-to-5¥2-year serial
notes; $71,000,000
in 20-year, first mortgage

was

expected

U.

to issue 20,000 shares of

company

(par $25).

Co.

California P.

West Coast Transmission Co.

reported company plans issuance and
$15,000,000 debentures. If competitive bid¬
ders may include
Halsey, Stuart & Co. Inc.; Lehman
Brothers and Salomon Bros. & Hutzler
(jointly); Kuhn,

are

Tenta¬

Oct.

Underwriter—None.

New York up to
chase from it of

—

1'

sale of about

Bids

construc¬

new

determined by competitive

Co., Inc., San Francisco, Calif.

it was reported
company, in addition to de¬
benture financing, plans to issue and sell to its
stock¬
holders about $10,000,000 of additional
common
stock

Southern Pacific Co.

be

and for construction program.

March 26

it

6

mon

Southern New England Telephone Co.

March 26

To

West Coast Telephone

construction.

Southern New

bank loans and for

.

privately.

•

reported company plans to issue and

was

on May 18.
Registration
tively scheduled for about April 19.

Underwriter—May be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp. and Lehman Brothers
(jointly); Kidder, Peabody & Co.; Union Securities
Corp.
Previous financing was done

(par $25).

it

<

.

pected to be received

a subsidiary of
Co., is planning to issue

bonds.

,

(5/18)

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Wertheim & Co. (jointly); Stone
& Webster Securities Corp.;
White, Weld & Co.; Union
Securities Corp.; Salomon Bros. & Hutzler.
Bids—Ex¬

shares in the United

Generating Co.
& Gas

17

—

reported this company,

South Carolina Electric
and sell
$12,000,000 of

.

$25,000,000 first refunding mortgage bonds due 1984.

an

States to realize at least $5,000,000.
South

said it has no immediate
additional shares.
Underwriter—

company

the

Proceeds—To repay
tion. Underwriter

\

intends to make

market

7,500,000 shares to 15,-

Virginia Electric & Power Co.

Co:, Smith, Barney & Co. and Merrill Lynch,

Scudder Fund of

to

proposal increasing the

a

from

Dillon, Read & Co., New York.

by

Pierce, Fenner & Beane.

stock

common

000,000 shares. The

company

Drexel &

Union Oil Co. of California

April 13 stockholders approved

of the company from

March

an

preferred

Underwriter—Union Securities Corp., New York.

on

ness

value, into 1,000,000 shares of a
stock, $50 par value, making
refunding of the outstanding $6 preferred
appropriate time, when conditions warrant.

of

a

stock at

stockholders will vote April
increasing the authorized common stock from 5,000,000 to 10,000,000 shares and the authorized indebted¬
27

class

new

•

23

Corp.

Co.

stock and debentures and

gage bonds.

determined

Feb.

determined by

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp.; Lehman Brothers;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.

(jointly); Harriman Ripley & Co. Inc.; The First Boston

10

company

competitive

debenture
would

be

issue.

applied

bidding
The

offered

in

to

the
its

on

30-year

5%

stock,

standing.

The company plans to

of the

tures, one-fifth of

a

$22,500,000

income

securities,

exchange for 225,000 of $100 par

preferred

mined cash

ICC for exemption

proposed

more

than

300,000

shares out¬

offer $100 of deben¬

share of common, and an undeter¬

payment for each share of preferred stock

and then redeem the then remaining outstanding 83,211

Sutton
Feb. 15 it

(O.
was

A.)

Corp.,

Wichita,

Kan.

shares of preferred stock.

reported company may do some financing

later this year, either niiblic

circulating equipment, etc.

.

-v.;

\

proximately $292,000,000, which would be financed
through the issuance of about $36,500,000* each of com¬
mon

which,
estimated, will cost $1,661,000. Underwriters—May
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Smith, Barney & Co.,
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.
be

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harris,
Hall & Co. Inc.; Harriman
Ripley & Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers: Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney &
-

300,000 shares to 500,000 shares. Underwrit¬
Boston Corp., New
York, and Collin,
Ohio.
-

First

was annouced that the cost of the
building
of the proposed cross-Canada gas
pipeline would be ap¬

it is

new

reported company

April

preferred

Trans-Canada Pipe Lines, Ltd.

C. A. Semrad, President, announced that the
raise new money this year through the
sale of $1,000,000 first
mortgage bonds or from tempo¬
rary bank loans for its 1954 bonstruction
program,

company

plans to finance its
1954
construction
program
through
temporary bank
loans, with permanent financing delayed until later in
the year.
Previously, the company had planned to float
an
issue of $15,000,000 first
mortgage bonds, due 1984,
early in 1954. Underwriters—To be determined by com¬

was

cumulative

March 26 it

Joseph Light & Power Co.

in

1

authorized

:

pipe

transport crude oil from the Pembina Oil Field

announced stockholders will vote

Norton & Co., Toledo,

Boston

Corp. and
Halsey, Stuart & Co. Inc. (jointly); Blyth & Co., Inc.
Bids—Tentatively expected to be received on May 18.
^

ers—The

aggregate value of up to
Underwriter—Eisele & King

March 30,

new

(5/18)

V

mated to cost about

St.

from
com¬

plete certain acquisitions and to repay short-term borrowings. -Underwriter—May be Allen & Co., New York.

j

letter of

a

an

Brothers; Merrill Lynch, Pierce, Fenner & Beane.

initial public

*

1

issue

securities.

new

Jan. 29 it

Ogden Corp., New York
April

to

was

increasing the

on

stock from

$8,000,000 bonds were also sold last year at competitive
bidding, with the following making bids: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp.; Kuhn, Loeb &
Co.; Stone & Webster Securities Corp.; The First Boston
Corp. and Salomon Bros. & Hutzler (jointly); Lehman

(jointly); Kuhn, Loeb & Co., A. C.'Allyn & Co. Inc. and
& Co. (jointly).

debentures

reported company plans to file

soon

March 3 it
20

April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction
program, estimated
at $14,000,000, will require further
financing. Common
stock financing to stockholders in 1953 was
underwritten
by Merrill Lynch, Pierce, Fenner & Beane. An issue of

Wertheim

'

;

.

Rockland Light & Power Co.

Scott

is planning the issuance
and sale of approximately $20,000,000 Of first
mortgage

Equitable

was

Inc., New York.

Toledo Edison Co.

Airlines, Inc.

notification

(Minn.)

; Feb. 8 it was reported
company
,

•

,

Underwriter—Dillon,

Read & Co.

Libaire, Stout & Co., New York.

Underwriter—To be determined by competitive
biddings
Probable bidders: Halsey, Stuart & Co.

March 29 it

Jan. 7 it
.

Company

plans to issue an<|
sell an issue of $40,000,000 of debentures. Proceeds—Tcfo
refund a like amount of 4 ¥2% debentures sold last June.

Inc.

V

Riddle

(jointly).

Texas Eastern Transmission
Corp.
March 5 it was announced
stockholders will vote April
27 on increasing the
authorized common stock from
7,500,000 shares to 10,000,000 shares.
•-

& Webster Securities Corp.

$300,000 of

Northern Natural Gas Co.

<

Weld & Co.

April 5 the directors approved a program designed td
refund the company's long-term debt. Bidders
may in¬
clude Halsey, Stuart & Co.
Inc.; Lehman Brothers; Stone

(5/11)

mortgage pipe

construction.

line bonds in July. Proceeds—For
Underwriters—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Stone & Webster
Securities Corp. and White,

May 26,

on

reported company plans issuance and sale
in June and
$25,000,000 of

new

Puget Sound Power & Light Co.

April 13 the directors authorized the issuance and sale
of 210,000 shares of cumulative preferred
stock
(par
$100) ."Price—To be announced later. Proceeds—To repay
—Harriman

Bids—Tentatively expected

was

$20,000,000 of debentures

first

and

First Boston Corp.

(jointly). Bids—Expected about May 18.

it Niagara Mohawk Power Corp.

of

form of debt financing is indicated
(probably
refunding mortgage bonds due 1984), Under¬
writers—For any bonds will be determined
by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The

Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co. and Salomon Bros. & Hutzler (joint¬
ly); Union Securities Corp.; The First Boston Corp. and
Glore, Forgan & Co.'( jointly); Lehman Brothers, Harriman Ripley & Co. Inc.;
Hemphill, Noyes & Co. and
Drexel & Co.

Jan. 27 it

some

first

For construction program.

—

Tennessee Gas Transmission Co.

Blake, President, announced that a $50,000,000 financing program is expected in the Spring
The type of securities to be issued is still undetermined,

March 26 company applied to the New York P. S. Com¬
mission for authority to issue and sell

mortgage bonds.-Proceeds

(5/2d)

'Jan. 27, G. H.

Co.

55

or

private.

Business—Air

Westpan Hydrocarbon Co.
See Pioneer Natural Gas Co. above.

4

The Commercial and Financial Chronicle
56,

Thursday, April 15, 1954

...

(1716)

BUSINESS BUZZ
A
s.

Washington
/§

^e*rto.^-»He-Scene Interpretations
(rvin the Nation's

-

brains

tive

to

name

Presi¬

Commission

the

of

Dame
was
Chairman.
Sherman Adams fired Manion,
the latter explained, because he
was not devoting sufficient time
17

Feb.

as

That

months

nearly two

was

At this writing a successor
Had not been named, although
there
are
several candidates,

,ago.

if

Even

is 1

Chairman

new

a

few

a

on

Commission has not been com¬

schedule of

pleted, and the

outlined.

.studies has not been

There is said to be no reason

Commis¬
Intergovernmental Reof the

for this eclipse
sion

on

rations,

r

■

v,

President

the

if

even

cannot find as a successor some-

unlike Dean Manion, who
1 will not take the project of
one,

<

governmental centrali¬
Manion re¬
garded the unlimited power of
the
Executive
to
enter into
treaties
and
executive agree¬
ments as one of the causes for
centralization. If he had not
been so outspoken for the
»ricker amendment, he prob¬
halting

sation too seriously.

been fired.

ably would not have

delay has been unneces¬

The

because the Congressional
setting up the Commission

sary,

law

lent

Oklahoma Turnpike
Names Underwriters

operation.1

state

On

in

Miracle

Guaranteed

Guaranteed Loans

Intergovernmental Relations
provided
that
the
President

There is

its

and

shall

name

under

America Act,

North

British

the

by

This

"C. B. leaned too far back in his

which got prolific on
a truly
national scale with the
National Housing Act of 1934,

in existence more varieties

were

there

than

insurance

FHA

of

pickles, prior to the Eisen¬
hower Administration, which is
were

increasing the varieties of this

Congress being willing.

magic,

There

in

bill

a

government insurance
loans to build hospitals, a

provide
for

investment not nor¬
looked upon as highly

of

type

mally

profitable.
The "Select" Senate Commit¬
tee

of

insurance

mended

banks

Business

Small

on

loans

by

other

institutional

that

so

5^,work can be carried forward
"

the

absence of a
this case Con¬

In

naming

the

made

gress

in

the

of

event

Chairman.

of

a

unexplained reason,
the President has not named a
For some

Vice Chairman.

the

theory

mission

was

toward centralization of govern¬

and revenues in
the hands of the Federal Gov¬
ernment.
It was
supposed to
mental powers

of returning powers,
responsibilities,
and revenue
study

ways

sources

It

to the states.
one

was

closet

the

to

the

of

projects

of

the late

heart

Senator Taft. And Dean

Manion

was

the outstanding favorite

this

or

any

for

job, virtually, of the

late Ohio Senator.
the

On

the

of

hand,

other

Eisenhower

volves

in

most

program

pal

raise

of
in¬

hands

the

of

the

Federal Government.

mote

example

housing

bill.

is

Under

pending
this

bill

plan their prospective urban
developments for years ahead.
They would have to submit
these plans to the Housing and
Home Finance Administrator, a
official.

This possibil¬
is

not

as

re¬

loans:

(a) To

consumers,

to buy du¬

rable

goods, to provide
em¬
ployment.
(b) To veterans, $2,000 on

purchased

automobile

every
new.

awaits

imagination

out

do

to

so,

of loan to value,

it struck

down

not

mean

House

President

raise

to

privately.

of

of

the
to

dwelling housing
not expected to
the path of
action, on the Administration's
housing bill. The revival of talk
about the past abuses of easy fi¬
nancing also indicates one of the
multiple

its

as

offering

colleges

had

price

to

just

the

of

40-year

serial

maturity, and banks and insur¬
ance

-

years

is

companies

the

first

If

the

HHFA

Administrator found these




plans

pany
Hall &

a connection from Tulsai
Joplin, Missouri, a connection

from Oklahoma
sas

connection

"Chronicle's''

own

program

the

control

of

the

bill

and

that

New Firm Name
LOS

one

pitches of the bill

was

of

Wilshire

changed

buying

some

of

its

been

Research

Management Company.

WE WILL BUY

—

Crosse & Blackwell
Gorton Pew Fisheries

Natural Gas

Rumford Printing
Cod Cranberry

American Piano

Carl Marks

as

FOREIGN

SECURITIES

50 BROAD STREET

HANOVER 2-0050

the

in-

Investors

to

Co., 6363

has

Morgans Inc. (Units)

•

&

Co. Inc.

Detroit

& Mackinac

TELETYPE NY 1-971

LERNER & CO.
Imrestment

Telephone
ikk<td<iu M':

£1£

Rwy.

SPECIALISTS

NEW YORK 4, N. Y.

Securities

19 Past Office Square,

supposed
own

Boulevard,

United Cape

to be to get the government out

of

Calif. —The

ANGELES,

firm name of Hexter &

Dennison Manufacturing

TEL:

instance,

in process.

are now

Concord (N. H.)

passed by the House, it aopears
to be virtually unworkable.
For

Wichita Falls.

Merrimac Hat

House

that the Republican leaders lost

City

Federal Coal 5s 1969

housing

indicates to observers

the

enginering studies

The traffic and

views.]

Unworkable

how

Oklahoma

from

Texas border near

i

President's

with

of these loans.

bilities.

of

City to the Kan¬
connect

to

through Lawton, Oklahoma to the

two for examples (a) through
(c), and others equally brilliant,
to be offered as serious possi¬

the

border

proposed Kansas Turnpike and a

or

Left

construc¬

as

namely,

only the lethargic
of a Congressman

Housing Bill

Macdonald,

engineers and traffic engin¬
eers
respectively, to investigate
the feasibility of the three exten¬
sions
of
its
present
turnpike,

tion

20

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capitol
and may or may not coincide with
the

it had retained the
Cather & Com¬
and Parsons, Brinckerhoff,

firms of DeLeuw,

pay

taking the later matur¬

half

ing

is

plan

HHFA

long-known abuses of Title

financing

amendment
last year, the

beginning
to work, Colleges are finding
that they can borrow on their
own responsibility at 3.5%, with
This

investigate

smooth in any way

an

money

Authority announced pre¬

The

viously that

than 3.6% for their money.

more

Eisenhower
\

3.5%

provided

In the process of

Decision

By

the

HHFA Administrator set a rate

on

Administration
the

usually could

raise

to

voted by Congress

striking at giving the
discretionary power
and
lower
interest

government-sponsored
killing
discretionary authority on in¬
terest rates, it killed the whole
Title II of the bill, involving the
other powers for the President.

loans.

afford

not

arbitrary

the government in
such a favorable

that colleges

rate

that the House did

so

offered

effect

to do this is that the

was

lower,

rate

interest

and

provide longer

payments.

is suspected

Co.; H. I. Josey & Co.; Leo Oppenheim & Company; Small-Milburn Company, Inc.

to

the law made

Until last year,
the

terms,
and lower
The reason it

repayment

draft by quali¬

who escaped the

fying for higher education.

not

discretionary authority

the

of
the

provide dormitories, and thus
make life easier for those

to

for the President to raise ratios

VI

•

with
out¬
houses leaning in the wind, to
construct new outhouses, pro¬
viding a market for lumber and
nails, and work for local car¬
penters. And so on.
farmers

To

(c)

It

meant to

empowered

Congress

HHFA to make loans to colleges

housing boom if high pres¬
housing construction were
needed to counter a depression.
may

Act

Housing

the

Under

1950

sure

rates

anticyclical purposes the

Analysis

the

cities would have to study and

Federal

for anti-cycli¬

might think.

one

as

cities

that

order

money

incidentally,

ity,

treated

One

in

bonds

can

insure munici¬

can

tion.

centralization

further

a

power

government

insure

trend

the

how¬

loans,

government could guarantee or

Manion Com¬
up
to study

reversing

of

ways

set

and

Come

For

Studies Decentralization
In

govern¬

bank

has hardly been scratched.
that depression, and the

ever,

cal public works.

Chairman mandatory.

Vice

for

of

implicitv

Chairmen

Vice

have

possibilities
insurance

raiding the Treasury, directly
indirectly, there is one piece
of news in the opposite direc¬

up a

House

news

of

government
insured
and
guaranteed loans, so as to steam

the

current

whole

Davis; R. J. Edwards, Inc.; First
Company; Honnold &:

Securities

or

ob¬

of

have

The

main

other

L.

story of providing further means

jectives of the Administration
was to give the President power
to loosen all around, the terms

While

business.

small

to

recom-t

the

of

One

the

In

and
insured
Congress cut this out.

guaranteed

loans.

would

,

Short-Circuits Treasury

interest rates to the market, on

its

private lenders to a guar¬

anteeing agency.

quirement was that the govern¬
ment should be able to adjust

House

which

pending

is

committee

from

is

risk

the

where

financing
transferred

insured

and

anteed

money

as

co-managers:

inherent shortcomings of guar¬

loans

dis¬
bursed by the Federal National
Mortgage Association. However,
to do this, the minimum re¬
Treasury

through

There

Housing Administration.

guaranteed

and

sured

Federal

the

created

which

as

senior manager, and as
Drexel & Co.; Glore,
Forgan & Co.; Shields & Co.; Al¬
len & Co.; Eastman, Dillon & Co.;
Goldman, Sachs & Co.; Lehman
Brothers; B. J. Van Ingen & Co..,
Inc.; White, Weld & Co. and the
following Oklahoma investment
dealers: Calvert & Canfield; Evan

ration,

swivel chair—oh well,
boots on!"

went with his

sured loan,

ment

commissions

Most

he

least

at

in¬

the

is

magic

new

firms

follows:—The First Boston Corpo¬

man.

a

woman

a

extension

banking

investment

of

he said, could do
everything but make a man a
or

turnpike

proposed

would be underwritten by a group

Parliament,
woman

be issued to finance

the bonds to

Ontario.

late Chief Justice of

a

April 13 that

thority, announced

Ca¬
the

the

to

Parliament

nadian

Chairman.

Vice

a

Hirschfield, Chairman
Turnpike Au¬

Oklahoma

the

of

reminiscent

are

ascribed

those

of

Aladdin's lamp,

a new

powers

an

i

Coming Bond Issue

Norman

projects, the
Commission has hardly turned
a wheel in that two months. The
internal
organization
of the

i

the construction of
medical facilities,
thereby extend a benevo¬
control over this kind of a
of

kinds

all
and

1

.named, nearly two months of
delay has occurred. Except for
a
few
research men digging
away

the

membership of the

Commission.
**

eral

within the

from

them

of

some

present

—

In this case the Fed¬
Government would follow
old New Deal pattern of

program.

subsidizing

to the Commission.
-

—Marquis James and Bessie R.
James
Harper & Brothers, 49
East 33rd Street, New York 16,
N. Y. (cloth), $5.00.

the Pres¬
construction

hospital

The Story

Bank:

a

America, N.T.&S.A.

of Bank of

Another example is

ident's

U.

Biography of

Federal benefits.
,

Notre

of

Manion
fired

—

Documents,

these

withhold

could

he

tory,

E.

Clarence

Dean

Former

Superintendent of
S. Government
Printing Office, Washington 25,
D. C. (paper), 450.

Commerce

plans for dealing with its urban
development were unsatisfac¬

governmental Relations.

Programs—

Census

of

Report of the Intensive Review
Committee to the Secretary of

provisions, existing and new, in
in the particular city. If
the HHFA Administrator found,
on the other hand, that a city's

Chairman
on
Inter¬

new

a

Appraisal

force

unhappy
by the hightoned criticisms they are receiv¬

dent

could order a
of loan and grant

he

whole series

iniost

ing for the failure of the

•

•

F1 /f

satisfactory,

D. C.—Some
Eisenhower's cap¬
are
being
made

President

•

jlJL I i/lM/ tJL "

Capital

WASHINGTON,
of

0

,

HUbberd 2-1990

Boston 9, Mass.
Teletype
BS 69