Full text of Commercial and Financial Chronicle : April 17, 1952, Vol. 175, No. 5108

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Volume 175

Number 5108

New York,

EDITORIAL

The Chemical

We S

As
j

r

industry last week, and his

markable

the

public

been said

examined

been

and

reexamined

and

again

over

—

—

and

in

the courts have
of the

United

no

segment of chemical industry. Lists major outlets for
petroleum chemicals. Holds business of petroleum refin¬
ing is essentially, today, a chemical industry in itself,

that the Chief Executive had

power

States,

as

held, then there would

protection

since every constituent

if

one

seem

against the establishment of

worker is

a

court has already
to be

effective

no

a

country

Wall

dictatorship.

and

worker with

no

skill.

The

only exceptions, if there

has

seen

financiers
their dollars

One

might

New York

in

busy

now

are

the

petro¬

Since such

that

a

up

sep¬

industry had been
created to produce a whole new class

called

of

chemicals, whereas, as you gen¬
well know, there is scarcely
a
chemical product of petroleum or
natural gas which is not readily pro¬

2,000

tlemen

such

executive*

from

all

ucts

are

demands

are any, ap¬

decade

inadequate
of

our

1940-1950

to

division

J.

Warner

P.

rapidly

population,

increased

to he the workers in certain industries which
have forced their wages up since Korea in defi¬

the

meet

growing

at

the

of

ance

stabilization doctrine

any

program.

or

•An

ical

J

Continued

~"

\

on page

30

Committee

the

of the

rate

of

53,000

New York

the

over

At the

per-

on

page

32

man

and

Securities

by Mr. Warner before the Synthetic Organic Chem¬
Association
of the
United
States, New York
16, 1952.

-

,

were

;

v

-

March 24,1952

on

held by this Committee in

City.

opening of the public hearings, Congress¬

Heller, the Chairman, announced:

"The

address

!

10, 1952 and again

public hearings

increasing

which

Continued

.

some

heads, and the administrators of two SEC

On March

pear

.

sessions

members

Regional offices.

product coke arid agricultural prod¬

same

execu¬

total of almost 90 hours,

Exchange Commission, all of the Commission's

by¬

as

a

approximately 25 witnesses and taken
of testimony.

such

At

pletely new industry has come into
being.
Rather, the chemical indus¬
try and the petroleum industry have
recognized that natural sources of
materials

organization meeting the Committee,

pages

heard

ducible from other sources; no com¬

raw

to be

come

to March 10, 1952, has met 25 times in

tive (closed) session for

arate and distinct

chemical

its Chairman and has

,

,

imagine

as

generally known as the "Heller Committee."
The organization meeting of this Committee
was held on
Sept. 20, 1951.

silver liriing

a

chemicals incubator.'

difference in skills,

is usual for workers of the

than

more

Street
many

placing

productivity or anything else. But in any event
the steel industry, the President to the contrary
notwithstanding, now pays its workers as much
or

On August 24, 1951 this Subcommittee was
appointed with Congressman Louis B. Heller of

Many attempts have been made to define "petrochemi¬
cals"; I prefer the simple statement that petrochemicals
are those derived from
petroleum or natural gas. The
word "petrochemicals" has almost become glamorous.

grievously inaccurate and mis¬
leading account of steel profits, and his equally
twisted account of the earnings of steelworkers
in comparison with wage earners in other indus¬
tries, have been challenged again and again and
again—and they should have been. A basic fal¬
lacy lies in a simple comparison of the average
earnings of the workers in one industry with
those in another, apparently on the theory that
a

to it

the smell.

The President's

<

Commission, of the duties and functions granted
by law.

of petroleum is used, including

to enjoin the President

Constitution of the

the

in

August 22, 1951 the Interstate and Foreign
Committee adopted a resolution au-j
thorizing its Chairman to appoint a Subcommittee
with authority, to investigate the Securities and'
Exchange Commission and the exercise, by the
Commerce

tends chemicals from petroleum are now fastest growing

think

we

dearth of reminders that

no

On

Con¬

gas.

Public

grain of salt

recent, Mr.

are

products derived from petroleum and natural

authority whatever for the action thus taken.

There has been

staging petroleum chemicals

Warner describes progress in development of chemical

It has

times without number.

press
over

with full warrant
no

Though

industry who fear reprisals.

officials and employees should testify at public hearings.
Slanted advice dangerous and should be accepted with

even more re¬

special pleading for the steel workers'

Union have

those in securities

By J. P. WARNER*

Esso Standard Oil Company

-

steel

Suggested lines of inquiry for Heller Committee. Exec¬
utive (closed) sessions should not be used except for

Acting General Manager, Chemical Products Department,

seizing the

Copy

a

Investigation of the SEC

Industry's

Stake in Petroleum

Many of the basic and vital issues raised by

the President's usurpation of power in

Price 40 Cents

N. Y., Thursday, April 17, 1952

following additional inquiries and hear-

Manufacturers

City, April

A. WILFRED MAY REPORTS ON MOSCOW

after covering the International Economic

CONFERENCE

—

Mr.

Conference in Moscow,

Continued

May's first

on

page

36

report,

appears on page

five.

DEALERS

State and

.

,

in

U. S. Government,
State and

Municipal

Securities

R. H. Johnson & Co.
Established

telephone:

STATE AND MUNICIPAL

Oil

BONDS

1927

w

H Anover 2-3700

INVESTMENT

SECURITIES

Municipal

UTAH

Bonds

Mining

and

•

BOND DEPARTMENT

OF NEW YORK
Bond

Pacific Coast &

Natural Gas Co., Ltd.

Hawaiian Securities

Sherritt Gordon

Kenya Colony and Uganda
Head

Branches in India,

Colony,

Kericho,
'

Subscribed Capital

Paid-up
Reserve

Capital
Fund

Direct Private Wires

£4,000,000

£2,000,000
£2,500,000

conducts every description erf
banking and exchange business

The Bank

also undertaken




-

-

Los Angeles

New York
Denver

14 Wall

&

—-

Quoted '

Goodbody

*

&

Co.

ESTABLISHED 1891

Members

of Principal Commodity

•fH

•

Los Angeles

•

•

Honolulu

PoMimojf Securities
Grporatioti
40 Exchange Place,

Chicago

OF NEW YORK

El Paso Electric
Power
Analysis

...

113 BROADWAY
NEW YORK

New York 5, N.Y,

Company
upon

request

CHICAGO

IRAHAUPT &CO.
Members New York Stock Exchange
and

other

Principal Exchanges

111 Broadway,
WOrth 4-6000

105 W.ADAMS ST.

*

Boston

CANADIAN

MEMBERS NEW YORK STOCK EXCH.

and Security Exchanges

OF THE CITY

Spokane

DEPARTMENT

Co.

Street, New York, N. Y.

NATIONAL BANK

"

——

CANADIAN

DeanWitter

San Francisco

Trusteeships and Executorships

Salt Lake City

CHASE

THE

1

Soid

Bought

Burma, Ceylon, Kenya
Kenya, and Aden

and Zanzibar

Principal Exchanges

BONDS & STOCKS

Mines, Ltd.

Office:

26, Bishopsgate,
London, E. C.

Dept. Teletype: NY 1-708

1915

Peace River

NATIONAL BANK
Bankers to the Government in

.

50 Broadway

Allentown

C.

J. A. HOGLE & CO.
Members of all

Scranton

Williamsport

Wilkes-Barre

Washington, D.

of INDIA. LIMITED

•

Securities

ESTABLISHED

Albany

Harrisburg

Y.

THE NATIONAL CITY BANK

PHILADELPHIA

Troy

30 BROAD ST., N.

,

Bond Department

Street, New York 5

64 Wall
BOSTON

COMPANY

\i

Direct Private Wires

Chemical
BANK & TRUST

*

1

-

Teletype NY 1-702-3

WHltehall 4-8161

N. Y. 6

Teletype NY 1-2708

Boston Telephone:

Enterprise 1820

,

2

The Commercial and Financial Chronicle

(1594)

Thursday, April 17, 1952

.

YT ! h H ij v't
i>)

f

x

ID

MARKETS

TRADING

The

IN

Security I Like Best

Southern Production

A continuous forum in

Deb.

Conv.

&

Common

Conv.

4.10%

Pfd.

participate and give their
they to be regarded,

are

New

Members

Stock Exchange

York

General

American

Transportation

At the present

the

stock

American

Rights & Scrip

shown

New

York

Stock

York

Curb

Exchange

BROADWAY,
Tel.

REctor

during

YORK 5

NEW

D
o

divi¬

dends,

•

American Furniture Co.

about

to

share

Moore

Handley Hardware Co.

from

fore.

Dan River Mills

Operations

$5.75

per

year

be-

the

$4.95

expected

are

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
Tele. LY 83

"base"

33

llllllllllllllllliinillHIinilllllllllllUI

With

year.

rela¬

a

profits

excess

of annroximatelv

show

further

a

industry

decline10
orofits
the

gain

10

in

ner

is
is

to

around

$6.50 per share level,

or

ap-

proximately the highest earnings

sure LIFE

registered

area

Last

years.

ASSURANCE

in

CANADA

"indications

growth should
would

be

chief

30 Broad St., New York, N. Y.
«

Phone

HA 2-2GOO —Tel. NY

1-1017

that

future

somewhat

a

by

upward

trend

served

and

portion
total

diversified

newer

the

(a)

being

are

expire,

with

new

Members

Stock

Exchange

Curb

Exchange

York

New

York

New

Commodity

New

Orleans
And

Inc.

Exchange,

Board

Chicago

of

Cotton

other

Trade

Exchange

Exchanges

new

car

leased

rental

isn't

N. Y. Cotton
.

active

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

as

IN

UTILITY STOCKS
Direct Private Telephone
to New York

CAial 6-1613
1. B. Maguiie & Co., Inc.

Member* Nat'l Assn. of Securities Dealer*
Inc.

31 Milk St., Boston 9, Mass.
Portland, Me.
Hartford, Conn,
Open End Phone

economic

prices of foods

con¬

they
at

revenues,

vary,

conditions,; :

but consump¬

tion, and therefore the transporta¬
tion of food products,
undergoes
comparatively little fluctuation in
Most

of

the

chemicals

Tele. BS 142

Enterprise 2904
Enterprise 6800

to New York Canal
6-1813

-




the

effect

their

aid

than

pupil.

of

The

which

each

the

the

V

UNION TWIST DRILL
Information

the

CA

$100,000 in-

a

taxable

the

districts
per

quota

7-0425

is

*he life of the bonds

of the various /districts

tax

lieve

that

all

is

pretty

York

New

invested in

1

sound investments

——

—

,

.

C.B.I.

Indianapolis Power & Light
common

Western

*Prospectus

no

threat to

"I took this action
the

utmost

Members

150

The

idea

of

Government

operation of the steel mills is thoroughly distasteful
to me and I want to see it ended as soon as
possible.
However, in the situation which
■'*
confronted
that

I

choice.

The

make

(with

considerably

less

governmental

rate
regulation),
possessing relatively stable earn¬

ings

characteristics

in

less

pros¬

a

periods, but also providing
greater earnings potential under

more

active

general

economic

of

around
of

54, compares with a high
7.1% in 1946, and 86 % in 1937.

Representing

an

investment grade
a

long-term

rec-

Assn.

Now York 7

V

Tel. NY 1-1932

LAMB0RN &

.

WALL

CO., Inc.
STREET

:

•

much

—

to

permit

the steel

of such
been

industry.

Limited

-•

LEAD-ZINC

The effects

immediate and

ing with respect to

"The
ernment

only

Analysis available

damag¬

President Truman

to grant the demands of the
large price increase. I believed,
charge of our stabilization agen¬

I was unwilling to accept the
damage which might be done to our
country by following such a course." — President
Harry S. Truman. President

rto

was

and

quite

other

inflation

Sauce for the goose

1

3040

willing
benefits

were

Over-the-Counter

to

grant

to

steel-

Quotation Services
for 39 Years

National Quotation Burean
Incorporated
Established

involved!

should also be

sauce

for the

46 Front Street
CHICAGO

gander.

ELiot

our

incalculable

workers—as if

Teletype SE 105

was

a

wages

John R. Lewis, Inc.
SEATTLE

stabilization program.

the

request

1006 SECOND AYENUE

believed, that * this would have Wrecked

substantial

on

our

that I know of, other than Gov¬
operation, by which a steel shutdown could

industry for

Yet

:

TUNGSTEN-OIL-GOLD

way

and the officials in

cies

Development,

shutdown would have

a

so

DIgby 4-2727

Placer

ac¬

shutdown in

a

Liquid

—

Exports—Imports—Futures

;

"One alternative would have
been

Refined

worse—so

that I could not

worse

SUGAR
Raw

alternatives

even

conditions.

Pricewise, the present level

Dealers

other

no

other

appeared to be

steel

•

Security

Tel. DIgby 9-1550

yesterday, I felt

me

could

have been avoided

utility

Y.

N.

Broadway

[seizure of the steel mills] with

reluctance.

transported in the company's

The shares may be regarded in
the broad classification of a
public

request

on

Slightly Faulty Reasoning

opera-.,

cars.

rights

<»tltSTH\ & FrENKEL

that it made this alternative unthinkable.

consumption
of
petroleum
products has shown a steady up-'
trend
through the years.
The

&

Leaseholds, Ltd.*

NEW YORK 5. N. Y.

national security

to

.

Commonwealth Gas Corp.

99

———

The

cars

subject

4-5000

State

1/2%. Central School Districts represent

our

are

WOr'th

well equalized and therefore I be-

there

our

company's

Teletype BS 259

Telephone

N. Y. N. H. & Hartford R. R.

H iUmP SUm' bUt iS

State aid is allocated the credit

left, actually, the net

were

Y.

to

securities,

77%

N.

more

entitled

is

district

protect

the

which

request

on

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

poorer

valuations

building

support

via

those

offices

to

ability of the

do

to

are

branch

our

building

relatively

with high assessed

dividends
sources

secure1

to

shipped

to

varies inversely

efforts
armed forces and

issue backed by
4

much

(b)

perous

Tel; HUbbard 2-5500

and

tions since very little crude oil is
MARKETS

wires

cept them.

pipelines carry
ACTIVE TRADING

for

relatively minor cyclical changes.

Exchange BIdg.

NEW YORK 4, N. Y.

CHICAGO

in

If this $100,000

terms.

volume.

.

If interest

paying

During periods characterized by<
less

words,

after taxes fi§ures around

advantageous

on

districts
State

other

In

500 is derived from

and

contracts

augment

Frederick

O.

in addition to other

food,

are

NY 1-1557

Orleans, La. - Birmingham, Ala.
Mobile, Ala.

the

lssued lor buildlnS WPOS*. Bematel'y 77%' SuPP°se the toP *2.- cause of the mannel: in which the

additions to the fleet

further

being

Exchange

Cotton

York

New

"

*

tial

will

also

^examnle tfoneh^an n0t P3id
allocfd

higher rental rates while substan¬

H. Hentz & Co.

First,

required

in

so

This aid

—e °f s»*htlyovir $50,000 the
tax on the top portion is aPProxi-

importantly,

replaced,

Paul

taxable

the

—

cars

is

with the tax-paying
district.
Therefore,

his

to

benefit.

manufacturing

and, most
(d) older leases on

tinually.

-

the

of

activities

car

located

taxes,

and

quota.

Sreater his income the greater the

developments of the enterprise;
(c)
interim indicated improve-*
in

tions

pro¬

income.

This

petroleum;

division

1856

c

direct

after

be at

industries

chemical

ment

Established

e

vestment

are

a

exempt
u rities

of

motivated

underlying

(ytLLEN & Company

-

20

greater rate than in the past.
Bought—Sold—Quoted

tax

expectation.
The

is

linquent

£ e
v.e s a
Denetlt trom

than

$3.50 should be the minimum 1952

COMPANY OF

St., New York 4f N. Y.

tricts receive State aid for opera¬

dividends

more

year's

W

in which the

derives

ex-

eTaTAmerican's

"mnrove

could

taxes.

year

a

generally

Gen

in¬

tax

share, net earnings for 1952 should
when

LD

$105,000,000.

large

bond.

tax

county or counties

investor

in

pany's major divisions this

v0

York Stock Exchange
York Curb Exchange

a

several features of these obli¬

unlimited

of

individual

com¬

The present unfilled order backlog

tively

operate

county assures the district of 100%
tax collections.
Secondly, the dis¬

s

to increase further in all the

is about

to

-

:

of

increased

formed

are

New

Direct

district

An

Members

School Dis¬

reimburse the district for any de¬

come

$3.10.

'
New

gations that make them, in- my
opinion, better than the average

from

State

(X

net re¬

a

Federal

August Huber

Contrary to the general trend
industry, earnings for 1951

Trading Markets

one

New York and

per

share;

are

exemp-

both

$5.72
imiiiiiflsmiiimsmmiiyiitfiiiiijiii

i.s t rie t
igations

tion

averaged

2-7815

yielding v only

tax-exempts.

b 1

offer

th e

past five years

0

EINER« IlOUSE

central school facility for previously existing common or union

the

Central School

I

Members New

free school districts, or both. The
bonds are general obligations of
the issuing district, payable from
m unlimited ad valorem taxes. There

the category of
York

.

Earnings

Exchange

New
120

tricts

that

natural

securities

New York Central

New

interruptedly

Members

'

in

un¬

since 1919.

is

*

"security I like best"'should fall

paid

dividend

a

it

'

O/vii^bv
-

HAnover 2-0700

2%, it would give
turn of $2,000.

tax-exempt

in

Co., New York City.
,

tax-free

& Company,

dealer

a

securities

year

having

,

Being

&

25 Broad

New York Central School Districts

profit

a

Bought—Sold—Quoted

■

O. FREDERICK

Frederick

Paul

Huber,
of
Spencer
<Co., .New. York City.

(page 2)

New York

since 1916, and

jflcpoNNELL&flo.

the

record, having
every

Since 1917

Frederick

„

The

company has
an
excellent

&

New York Central School Districts
—Paul Ch 5 Frederick, of Paul

prices,

shares appear to offer better-thanaverage value at this time.
PAUL

August

Transportation

(Page.2},

and

about'6%%t

yielding

yields approxi¬
mately 6Vz% on last year's $3.50
dividend.

high

American

Trask

dividends

unbroken

historically

Transportation

Specialists in

Louisiana Securities
—

earnings with further earnings
Saips in piospect, .selling.,4)yell
under
ancj

price of about 54,-

General

of

of

Alabama &

Selections

particular security.

a

are not intended to he, nor
sell the securities discussed.)

to

ord

Spencer Trask & Co., New York City

Teletype NY 1-583

BArclay 7-5660

offer

1920

Broadway, New York 5

129

as an

AUGUST HUBER

New York Hanseatic

Corporation

for favoring

(The articles contained in this forum

Utility Sl/i/Sl

Established

reasons

Week's

Participants and

Their

General

Puget Sound Power & Light
Central Public

which/ each week, a different group of experts
advisory field from all sections of the country

in the investment and

EI Paso Natural Gas

This

Forum

/

.

1913

New York
SAN

4,N.Y.

FRANCISCO

Volume

175

Number 51C8

.

.

The Commercial and Financial Chronicle

.

(1595)

The Future of Reinforced Plastics
;
•;

■/'

,

By GAMES SLAYTER

INDEX

*

Vice-President in Charge of Research and
Development,
Owens-Corning Fiberglas Corporation

;

:

/

:

LiCHifnsTEin

B. S.

Articles and News

~

Page

The Chemical
Industry's Stake in Petroleum

AND COMPANY

—J. P. Warner

„

'

r

Research specialist of leading
fiberglas producer reveals recent' C '
rapid advance in reinforced plastics industry. Says the new

The Future of Reinforced

.Cover

Plastics—Games Slayter

ROOM FOR ONE MORE?

3

-

material is more than a substitute for metals since it
has contributed greatly to the
improvement and usage of products in
various industries. Contends

*

will reach

volume to

a

and

growing
plastics.

vision

in

industry
We

a

industry involving

new

reinforced

take

;

machines

resin

p

i

I

a

was

a

<

to

proper
of reinforced

bricators,
h

many,

1 p e d

e

spark this

dustry.

the

the

.

fishing

in-, trical

there

have

Vishinsky

The Job,

insulation

and

been

inite

lean years, and
for a time slow

contributions

to

„

■

the

"substitute."

stigma

plastics

has

industry

The

def-;*
indus-_

plagued

as

resins, flame retardent resins and

for

now

t-

•

.

'•'•'

,

*

■

Investigation of

the

Future

And

With metals generally'
scarce, the
applications of reinforced plastics

The

which supersede metals

.

reinforced
interest.

often

are

of

the

plastics?

a

major V
>>

Our present
described
as
substi¬
steel capacity is
tutes.
We should be
continually "/ about : 100,000,000 tons per year,
on guard to
discourage this erro- Aluminum is 1% of that, or 1,000,■„ neous term.
000 tons per year.
During 1951 the
a

•

Describes

r

would

be

just

as

unreason-

tain

plication of reinforced plastics

tics

a

substitute for

material,

■

it

as

the automobile

some

would
a

as

to

a

Funston
York

Character

at

one-third

the

weight

inferior to
be
in times of shortage or

emergency, then the person

,

plastics

to

care¬

one-third

with

inent.

In

the

developing and applying future, allow

materials

new

plastics,

like

companies

uals have often

and

broken

'

rules,

t:

departed

Calls

NYSE

Abandoned

.

'

to

Members

In

order

for

^

materials,

available

men

with young ideas.

^Industry Now
l\

Mature

In the early days of

plastics

there

j

reinforced

Mass

Produce

no

standard

equipment available for

See It

Effort

in

ton

this

of

synthetic

direction

Continued

Our Reporter

Prospective

PREFERRED STOCKS

26

Wilfred

Spencer Trask & Co*
Members New York

Albany

•

May

May..

Stock Exchange

•

Chicago.

Private Wire to

•

Glens Falls

■

Schenectady

this

week

Twice

Weekly

CROWELL, WEEDON & CO.

LOS ANGELES, CALIFORNIA




Outstanding

.

Excellent

.

No

obligation)

HA 2-0270

.

40

Exchange PI., N.Y.

5

*

28

l

___

Air Products

29

1

...

44
16

_

_L_

Baker-Raulang

16
41

i

Collins Radio

2
5

the

on

Dictograph

38

_____

International

Di-Noc

Economic

Park

DANA

Place,

Copyright

REctor 2-9570

to

7,

N. Y.

1952 by William

Thursday, April 17,

records,

corporation-news,

and city

Other

news,

President

1952

Offices:

Chicago 3, 111.

135

bank

etc.).
South

.

La

"

Eng¬

Stromberg-Carlson

Dana

Y.,

-at

the

under

post

the

office

Act

Whitin Machine

Febru¬
at

New

March

of

8,

Works

Subscription Rates
Subscriptions in United States, U.
Possessions,
Territories
and
Members
Pan-American Union, $45.00 per year;
Other

Every /Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete'1 statistical1 issue — market quotation
state

B.

second-class matter

as

1942,

N.

9576

SEIBERT,

C.,

1879.

HERBERT D. SEI3ERT, Editor & Publisher
DANA

25,

ary

York,

York

E.

Company

COMPANY, Publishers

New

Hoving Corp.

Drapers' Gardens, London,
land, c/o Edwards & Smith.

Dominion

Worcester

.

Favorable

47

1

"

•"

...

Singer, Bean
& MACKIE, Inc.

34

.'___

Reg. U. 6. Patent Office

TELETYPE N. Y. 1-5
•

.

Liberal

.

Substantial

48

reports

ST., NEW YORK 4, N. Y.
•

.

.

,

Banking Recognition

40

(Walter Whyte Says)

COMMERCIAL and
FINANCIAL CHRONICLE

■*'

.

.

.

Conference, held in Moscow.

»•

WILLIAM

Boston

Bargeron

Offerings_2_-___________-__^_____.____

Tomorrow's Markets

.

.

(Ask for Report R-10.

8

Governments.

Security

Base

.

.

.

Management

39

Washington and You
'••Mr.

.

29

Reentered

TELEPHONE HAnover 24300

Tax

The State of Trade and Industry^;

25

BROAD

Dividends

Leverage

Report__^_

on

$10,000,000

35

^

L

________

Reporter's

yield

Assets

Funds

Observations—A.
Our

Stock

$4 Per Share

Current

Cover
;___

Indications of Current Business Activity____

WILLIAM B.

25

Approx.

_.

The

have specialized in

FACTORS CORP.

24

rap-

8

Growth Situation

STANDARD

31

_______

(Editorial)..

raw

page

Angeles

24

Drugs... 33

resin.

will

on

Los

New

plas-

each

6

1-3370

Direct Wires

Philadelphia and

18

Published

For many years we

Amended

News About Banks and Bankers

This will do two things: (1)*„
Improve over-all physical properties and appearance and (2) ex- \

mass pro¬

was

to

Important Medical

Bank and Insurance Stocks

Mutual

tics.

tend

Teletype NY

»

Over-the-

Property Law

even

jdustry, offering vast opportunities
for young

Broadway, New York

BO 9-5133

'

to take more ad- f
high strength-to-

our

Attention

Public Utility Securities
with rapid expanforashness
symbolizes
the
rein- sion of facilities, to satisfy a small j / Railroad Securities
forced plastics industry, and the portion of the vast market before J
Securities Salesman's Corner
men
and
companies in it.
It is us, it becomes necessary that we
Securities Now in Registration.
a
young, lively, imaginative in- take full advantage of the use of *
The Security I Like Best___
J
mineral fillers in reinforced
dures.

*

from
habitual
proce¬
This vision and down-right

of the

Einzig—"Can British Gold Drain Be Checked?"__.____.

weight ratio we have in reinforced plastics over the metals.

individ¬
the

us

vantage of the

reinforced

of Activity

From Washington Ahead of the
News—Carlisle

r
^

,

:

Scope

____

Dealer-Broker Investment Recommendations..

new and
weight and alum-;
unique properties.
New materials have contributed inum at two-thirds, the weight.
greatly—along with research arid Improvements in glass, surface K
engineering—to product improve- treatments and resins will, in the

*

61

22

Coming Events in Investment Field_________

this

f

'

Financing-..:

Canadian Securities

it becomes merely a ques¬
tion of properties and economics.

The
properties
of
reinforced
lessly applying it is showing his
ignorance and die-hard re- plastics in the present state of the
sistance to adopting new materials art, allows us to replace steel at

'

,

level,

basic
*

As We

of

attain

Reilly & Co.
Incorporated

9

Common

,

reinforced

something

used only

.

J. F.

8

___

Regular Features

notes

the telephone

a

.

and

Markets

Chemical Cos.

reinforced plas¬
volume to equal,

the y
steel, the total quantity would be //
about 16,600,000 tons. In order for

or

Request

4

A

substitute for the carrier pigeon.
But if the term "substitute" con¬

.

on

2

___

If 50,000,000 tons of steel were
replaced with reinforced plastics

call

substitute for the

horse and buggy,

will reach

__Cover

__

of Deficit

half the steel market.

accustomed

be

that in time

(Editorial)

Savings Banks Permitted to Invest in Com¬
!y__16

».

It

able to describe the successful
ap¬

.

Tennessee Production*

19

*

Way (Editorial)_____

State

Counter

tonnage for reinforced plas-/
tics was 10,000
tons, or 1% of the
total aluminum
capacity. I main-;

Metals Substitute

*

Deposits of New York State Savings Banks
Continue Upward 22

total

Not

SEC

Snyder Reveals Plan

v

wrongfully

Schering Corporation*
18

Reasoning (Boxed)

Stock

mon

re-/
"

17

'

/

Chemists Reveal Improved Vitamins_-_-_

future of

Being
'

,

American

New York

search man, herein lies
my

Colorado Interstate*

Chemists View Progress in Creation of
Synthetic Fibers

Prospects

what

now

15

;

*Prospectus

Slightly Faulty

threatens to

damage the companies who have
a
big stake in reinforced plastics.

/

Regulation—Lyon F. Terry

Agriculture and Business in Years
Ahead—Louis H. Bean.___
•

„

many years and

Canadian Chemical*

,

-

bling blocks to wide-spread pub-,
lie acceptance of reinforced
plas-.
tics, have been greatly improved.

the

whole

a

Beckman Instruments*

14

;

Foreign Aid Through Investment
Companies
—Hon.. Jacob K. Javits-_____.i

try in the form of heat-resistant

sub¬

Winkler____j,____ 13

___

Slayter

word

11

___•

Natural Gas Supply and Federal

•

stitute

10

...

Will Wage Increases Now Be
Inflationary?
"V —Douglas H. Bellemore

growth, but others to fit specific end uses.
The use of fillers with the re¬
today our industry is a vital, vigorous part inforcing materials should not be
of the American way of life, com¬ considered as
adulteration.
For,
manding
respect
and
attention certain applications, molding s.
from industry as a whole.
have been produced with better,
Tn rapid growth there are al¬ all-around
properties. Surface fin¬
ways pitfalls.
Let us beware of ishes, up to now one of the
stum-,
Games

Outlook—Roger W. Babson__.

—Marcus Nadler

•

this

WALL STREET, NEW
YORK
Telephone: WHitehall 4-6551

American Business

vs.

>.

elec¬

panels.

buyers!

ShortrTerm Money Rates and the
Mortgage Market

<

as

—

Try

Obsolete Securities
Dept.

6

Peace and Profits
Through Point IV—Max

applications -such

We're

us.

more

6

Rudolf M. Cziner..

paid

engineering, design
plastics, resulting in
boats

plenty

No bidders?

Economic and Legal Factors in Stock
Options—Arthur H. Dedn 12

t

rod,

5

Prospects—Roy L. Reierson

(Yesterday Iran—Today
Guatemala—Tomorrow the World?)—Robert S.
Byfield

The resin companies have made
and are continuing to make

To be

sure,

sound

been

for

room

99

'

'

has

ve

4

Investing in Chemical Process Industries

—R. S. Aries and

molding presses to.,
new types of ma¬

attention

:

tna-..

new

!.

Much

,

ring

o n e e

these

terials.

com¬

panies and a
handful
of

has

and

fabricate

,

'

Near Term Economic

a

terials.

F i b e r g 1 a s
along with the

U.,Cobleigh__CL_l

obsoletes that is.

Today, great strides have
pride, in all been made in the development of.
modesty, in equipment,
and
we
now
have
saying that available a variety of preform
—

We

Important' Implications of Moscow Parley—A.
Wilfred May..

Risks in

duction, mainly because it

and

new

The Lab Leaders—Ira

-

that, in time, "reinforced plastics
equal half the steel market."
1

Since 1940 my company has had
faith

"
-

clearings,
' '
Salle

St.,

(Telephone: STate 2-0613);

of

Canada,

Countries, .,$.52.00

$48.00'
per

per

year.

S.;
of

Bought—Sold—Qv

in

led

year.

"

.

i

Other
Bank

and

$30.00 per year.
Note—On

the

rate

of

Publications

Quotation

Record

—

Monthly;

(Foreign postage extra.)

account

of

the

3

fluctuations

exchange, remittances

for

in

for¬

eign subscriptions and advertisements must
be made in New York funds.

THEODORE YOUN
40

Exchange Place, Nev.

WHitehall 4-2250

Tele)/

<

& CO.

fork 5, R. Y.
pe

NY 1,3236

4

JN if

It-

t

' -1M i

I 'J

HI"

("1^1

IV

"H '

INU

.

I

I

The Commercial and Financial Chronicle

(1596)

Good growth, good

and fertilizers.

The Lab Leaders

management.

Chemical, for years a
financial fortress, a solid brick in

the way to

edifice

the

"Expanding Your Income"'

dustrial

the Dow Jones

of

In-

top factor in
heavy acids, nitrogen compounds,

of certain chemical corporations which have led
a myriad of new products and to wide market

A panorama

we've talked about, it spilled over
into a variety of new and profitable fields. During 1951 CV built
a new plant, tripling the production of anti-biotics, and the company has
brought forth a new
product—"Expandex," a dextrose
blood volume expander. And just
to fill out the picture "CV". has in

v

«.

Allied

By IRA U. COBLEIGH
Author of

"

list,

is

a

alkalis, coal tar derivatives, all of
which it started pouring out in
1921.
From 1946 through 1950 it progress a new $23 million plant
added $150 million
to property to turn out synthetic ammonia

popularity.

to take a look at
: Marketwise,
it is easy to ob- account, entirely out of retained
the portfolios of some 160 invest- serve that without the leadership earnings. It does not clutter up its
ment trusts
including both closed of the oils and chemicals, we balance sheet with a lot of assortend
and
tail-gate
varieties— would never have hit 276 on the ed securities, being content with
boasting com- Dow Jones scoreboard last fall— merely making available to inbined t o t a I and if we break 300 this year, it vestors 8,856,396 shares of com:
assets of well will probably
be by using the mon—sole capitalization. ..V
.
If you

'

lion,

There has,
however, been some lag in posi-

bil- same two-man team.

$4

over

you

find

would

that their sec-

favorite

investment
field is chem-

gas). Roughly,
12%
of
such

bite. suggests; that in

trust funds are

proved this year (although a num-

1951

stocks

i^^^ddent. in? growth- able targets for
market,- chemicals
surely taxes.
qualify. Industrial chemical sales
have surged from $600 million in
1925 to over $5 V2 billion in 1950,

and tanning, te~*™,

paper

SDPctfiillv referred

gl001tful^r. roi^

-

..

.

.ilexri.

gions of industry.
for

below, presented as current values
appearing to charge the buyer not
too

exalted

premium

a

fja-

for

mour, growth and

possible laboratory genius.
The list is obviously not a complete one, and cutting it down to
the five companies will doubtless

promote

maunder are a special
estimated.
Sulphurs

group

ihinir

0

tn

q.

some : discussion

7^777

"rhmn

mv

®

and

fo

•

ali

ca]s

deserve

the

security portfolio. And

»'

1

confidence

to

Possible,

some underpriced, undervalued items. As we all know,

able

especially in springtime, romance
a wonderful thing; but it can

1

as

a

in most of

^

other

cell<ShaneanotherJJm-

cillin

that

another

lab leader'

&

:

e

synthetic

another

'

^

'

-

»

'

.

.

Chemists View Progress in

current

garded

•

i^fi" derfuJ, technique for building

07

Having guardedly qualified my unto themselves. There are ex-investors now accord them. Even
approach, I am now m a position cellent operatmg units here but though this group is selling at

yield might be re¬
especially attractive.
'

Union Carbide and Carbon be-

what the economists is

yet reached

;
■'

Hnn'i

Avir,

A d

minute that chemicals have

a

analysis and selection in this field,
glance over the issues in the table

D°wn to Earth Chemicals." these enterprises there is an in.® Af oVJiH^c^nn
foregomg visible asset—-a battery of scien-

start splashing around a bit Texas Gulf with its important
and this ninefold growth would among the test-tube titans with newly located deposits of surphur,
be hard to duplicate in other sec- the goal in view of selecting, if a good management and accept-

.

might select, As
rough guide for your

you

sort of

some

of

bright in
other investas

in any

as

area

is

vista

a lii
be im- ucts, industrial chemi(

excess profits

mad

'

this field
ment

is

growth

from

there

the

the main Nopco has quite

results cannot

net

lodged ber of units have some nice ac- and varnish, plus pharmaceuticals
this
cate- celerated amortization they can and margarine. Could be that this
the 20 top apply to new plants);
and (3) Nopco, among the lowest priced
chemicals as a class are vulner- chemicals, might be among the

inHndih^ five of

fm^t'held

continued

discount

highs,
that

investors * interested argument: Remember, however,
the t:of
soil 801116 that selection thus made, was aitstudy should surely be made 0f tempted, not to detract in any
International Minerals and Chem- way from the other splendid comicals, Virginia - Carolma Chemi-- panies in the field, but merely to

today

Cobieigh

in
^

market

evidence

.

relatively little known, but makjng some really impressive for-

;

moderate

a

historic
much

probably should
Nopco Chemical,;1"

about

sajd

be

enthusiasm for
chemicals recently due probably
to three reasons: (1) many chemicals have appeared to have built
into their present market quotations all the growth that liae
ahead of them in the next year
rampant

tively

WOrd

^ind

^

only

Thursday, April 17, 1952

.

.

ward motion. At 23 it's selling at
roughly 9 times earnings-ex- pais, Davison Chemical and Amer-: suggest that perhaps at this par-traordinarily low for a chemical."^icanAgricihtura1 Chemical. These ticular moment in time, these are
icals (the first
Another thing, its book value ist specialize m fertilizers and.-the relatively
favorable values.
In
choice
oils
75% of market price. (Monsanto's "emana for their,products should any event, careful purchase and
and natural or two; (2) the present higher tax book is about 32%
of" .market)r
dogged retention of lab leaders

ond
"

ira u.

and methanol. Further elements
of growth here are found in a
25% 19517increase in sales over
1950 and a 13% increase in per
share net.. Commercial Solvents
is commercially successful, and
splendidly solvent.
^

were

.

longs

up

in

mink-lined

the

de-

far be over-emphasized—especially in partment along with American
securities. And, frankly, in lab Cyanamid. Company's forte is alfrom it. 1951 figures
11 s ow
lingo, some chemishares are today loys, electrodes, industrial gases
total, increase over, 1950 of some roughly two parts investment and and carbides; and Union
is, I beone part glamour.
27%.
Our job is to lieve,
the largest
producer
of
pick the ones selling ex-glamour! plastics right now.
A wonderful
like to call the mature stage

,

.„;n

mKi

•*.

r

oi™,

You

really go nuts writing
"Nobody knows
where to begin; and dozens of corporations that started out manucan

about

We Invite You to Find Out About

THE FINANCIAL AND TECHNICAL

SERVICES

■

'

•

g|g|g

chemicals.

'acturing

wound

doing what
Take Glidden

up

chemically.

comes

Co.

plain, ordinary prod-

a

have

uct

This outfit started out mak-

resoarch

organization

report

In The

Industries

paints.

The

;anium

chemical
chemical

complete consulting service

biased financial

your

needs for

analyses by

un¬

snrier-market
super-market,

all
all

experi¬

an

are

useable

The6e reports

privately or for bulletins,

prospectuses'

and investors literature.

can

prepare

dozen

companies

all

the

products

fields

of

but alert investor of today

hosey

plastics;
(2)
chemicals;
and, (3)
three

iiu.-nS5®L

.

creation of

i

complete

evaluation

of

development

pany,

its

of

a

present status

com¬

in

the

ahnnt

Aabout

industry, and future potentials.

|

Included

appraisals

of

the

mercial
and

be

stvel^n

little
list of

a

f

thorough examination of

We specialize in surveying in
vestment possibilities for expan-

v;

sion and diversification.

second

along

there'll

worthy current chemright now I'm go-

and

company's present operations,

'the

ical values but

J:

a

dash

off

dozen

line

a

or

columnist and

a
or

two

about

a

with

a

companies

so

We shall be pleased to

| needs on

a

discuss

or

two, about the

class, it seems to me you have
string along with American
Cyanamid.
A
growth outfit in

to
your

basis without obligation.

spades, it
it

ever

seems

tackles

to do well what—

resins,

agricultural, explosives,

:R. S.ARIES & ASSOCIATES

plastics,
or

cura-

tive chemicals.

well

alkali

now

a

&

fihPr
fiber

of
A
-o.

of
of

the

which

Tt

research

io
is

a

~
the

~
best

could
could

1931
^

in

Dr

>

timid

a

finger

of

lieht

creates

each

science

need

a

science

new

and

to find

fiber.

would

relate

and
ailu

lce'
tV,c'

te'

textiles

to

their

*

<

" I'

serv-

Z
properties

the
the
U1C

J
of
uf

Company's

Apartment

^

1,

Textile

and
•

Fibers

head

•

r

of

reto

of^Tiin^

you

His

J?011111631 division, explained. Dr.

"that

Heckert discussed "The Selection
' uiatusscu
ocxccnuu

marked

.

•

on

the

a

Tm:
posium

renort

factor

in

chlorine

and

growth of aureomycin by Ameri-Cyanamid's dynamic affiliate

Company—

American Cyanamid
Commercial Solvents

PROCESS

"banthine"

INDUSTRIES

Mathieson Chemical

MOQ-Madison Avenue, New York
I7, N. Y

—

,

:
u

Nopco Chemical^r>>_n_j
Union .Carhirift-- r—r:- - I

V ^
'

i

■■

*

::'\i

st-

L. A. DARLING

>

and

''dramamine"

by

i

Searle; with mention of Abbott,
Davis, and Squibb — producer of a new TB drug. The story

COMPANY
Precision

i

stockholder

■'

'

Parts

—.

Casting of Aircraft

Offers

Long-term

•<

Growth

Potential

Active Market
Latest

in

of each of these companies is a
solid saga of corporate success,
of

(

.

"

Parke

upon

Report

request.

'

•

Oil Co.

contentment.

Commercial Solvents started out

is

Per

108

"2.22

47

23
64

1951

Share,

Dividend

$8.08

25%
.

'

•1.25

•

3.61

.

"

A

Times 1951
^

$4.00

3.56

2.26

Utah Southern

Price

Earnings

Price

—

the

as more and

'S ar6

J? +1

-

of

—Lederle Laboratories. It touched

1951

,

"Status

Pointing out that

,

can

Current
v

IN

the

;N^r Synthetic Fibers."

pr6se J1 JJ^acron^) .polyester fiber
anJ e P^y^,we fiber, nylon,

fantastic

primarily in the alcohol business
petrochemicals but, like so many of the others

•

on

SvSS'tf" T

Thf_ b

a
few reprints left,, if you,
write in for one). This started off

comment

tn

H' Carothers and Dr- Julian W.

pn

have
with

was

Presented "y the late Dr. Wallace

tomv

12

reference

its

I Jr

•

inthet-

the vitamin vendors, but ob-

the

5bers-from *h they are ^
Pi,
5 Heckerp ^ssiat"
-nt General Manager of the du
Pont

Quig pointed out

new

ftnmW

frnm

Sept.

fibers

' uses for

garments

synthetic

on

fiber

thr

^

Buffalo

fiber,

Heckert, also of du

whole

This

said that

when

W.

synthetic
for

division

rfv"

"far

o
a

existed

protein

W.

acrylic

noted that the vast array
of new textiles made possible by
the rapid appearance of additional

rinrinc

was

meeting

whole
wituic

unronicie"
"Chronicle"

The
rne
The

inHnctrv
industrv

that

^fes^tSe^S^i

and

then

a

Pont,

American Chemical Society met in

-

Inow^Sotfme

ECONOMISTS
'




textile

be

-

Mathieson Chemical started out
with

CONSULTING ENGINEERS

CHEMICAL

Dr.

•

completely confidential

SPECIALISTS

"Vicara"

jJ'xi:
asserted, conf°unded the forecast to < become a
way they're
increasing their re- upon the growth of penicillin by
■Y^
and
pute and their earnings, or both.
Pfizer, the expansion of cortisone
^ac^
polyester fiber, for
For across-the-board
quality and
Vitamin
B12 ;-by = Merck, wolc" 3
nianufactunng unit is

salient feature

and

>■

edition
edition

article here

further

(company's plants and processes, ing to make like

a

the

0f

whole Buffalo in 1931.

a

department

dllu

men,

third, above.

.i|

*

j1?011

^

n

A

I]

are

synthetic fibers.

"Orion"

as

the

financial, managerial, and tech¬
nical

to

in'

■

curatlve cnemicais
cals
and
anti-biotics.

in
A

new

fibers

•

curative chemicals—pharcaceuticumtWe"chemicals

$1.8 billion in sales in 1950. Amer-

for you—

■

Then' of course' there's

medicinal
for

market

Speculative- -but

wonderful

fertilizers.

accounted

13

terestine

growing right
thetic

over-the-counter

around

probably the fastest
now "are*
(1) svn

Kinston,
become1

to

"Acrilan" acrylic fiber, and
dynel,
also
in the acrylic
family, and

the

-

at

C., is scheduled

Everybody is getting so fussy dustrial firms gave informative
about smells these days that the talks on recent progress in the

°.f. the du Pont Company's Tex-

chemical

'■vg

commercial reality next year. * r
In addition, Dr. Quig' pointed
out, there are such other new

ar?und 3' :BTightetr ProsPects tile Fibers Department,
dave ™<=e sent the stock up on the present status of the

have

nin

Of

These
We

A

.

grown in similar manner.

enced and integrated staff of economists
and chemical engineers.

N.

;y

constructed

of Industrial and EnProbably break out with gmeering Chemistry of the Ameranother fast-selling item before ican Chemical Society, several
the year is out.
research chemists of leading in-

loader, This National Alfalfa stock
i ms in ationai Aitaita stock

hnilt
built

by research, and thi fact that
one product led
iroduct
logically into another

synthetics.
being

,V?*® u*g somethmg new and Division

up
a

new

an important future in turning out 400 million pounds annually by
whiH bait on a large scale, from 1953.
;;
U<m5 J?+•
f
-■Dr.' JosePh B- Quig, manager

oxide, sex hormones, silienamels, synthetic resins and
finally margarine. Practically a

R. S. ARIES & ASSOCIATES

We offer

of

ance

gathering in Buffalo, N. Y.
on March 27 of members of the

first

cone

designed to meet

Meeting of American Chemical Society they
textiles, made possible by rapid appear¬

new

At a

always

is

of

an array

thing you should probably look into chloroAccording to Dr. Joseph B.
know, they were processing lin- phyll. Its made out of alfalfa and Quig of E. I. du Pont de Nemours
seed oil.
Soon, in rapid succes- lnu°H;. cahed National Alfalfa & Co., production of truly synsion, followed entry into cocoanut Dehydrating and Millmg *Co. of .;thetic textile fibers in the United
oil, fats, soy beans, cortisone, ti- Laiyar, Colo., is thought; to have States. will total approximately
ing

Chemical and Process

,

At 121st National

o

13.5

.

Moreland & Co.

t

.

.Earnings...i'

Members:

JAMES M. TOOLAN & CO.

Midwest

Stock

Exchange

Detroit Stock Exchange

'

•

2.00

-

12.8

1.45 "

'9.8

'!

11.5

=

2J50 H":

-

,

17^:1

S

t

67

WALL

STREET

NEW YORK 5, N. Y.

H An over

2-9335...,

Tejet^pe^ Y1-2630

11051 Penobscot Building
DETROIT 26, MICH.
Bay City

^

Muskegon

Volume 175

the

study

becomes

Number 5108

of

all

market

the

"This is

important,

in which

there

Of Moscow Pailey

of the more important rela¬
tionships.",
'Ijven in the face of exhaustive
•

an

ac¬

-

curate knowledge of productioncosts, he continued, it is not pos¬
sible to predict market acceptance
with, any degree of accuracy, ex¬
cept in a limited number of cases
where

all

lines

of

-and

/;

evidence hap¬

■

to point in the same direc¬
tion. Large-scale testing of themarket is necessary in most cases.
pen

'The appearance
cession

of

thetics,"

in

rapid
new

syn¬

said

Heckert,

Dr.

"has

of

beginning to liberate

of creative

of

fabric

and

a

in

endeavor

garment design.

new

textiles

-

values.

vast

a

interested

of

science."

a

A. Wilfred

textiles

new

Goldberg,
J.

P.

Stevens

York,
cose

&

di¬

were

Bretton

creation

vis¬

will still be the king;
of mill-made fibers, and "it
will;
than

more

led

by the

this

ruler,

mild revolution

a

fibers to

new

or

cause

May

rayon

of

all

States.

of

man-made

"We

well

are

West

of

the

some

totaled

contribution

length

of

life

in

of

problems,

basis, not

"On the

other hand

remembered

that

it

close

to

States

Mr.

must

or

or

be

con¬

keynote slogan,
Of

as

course,

war

to

stems

unemployment,

poverty'to

planning and State trading

wear

fashion

from

point of

pressure on

For the benefit of the

with very special attention

underdeveloped

paid the Asiatic

imperialists' insistence

So

gar¬

ments of properly designed fabrics
is adequate to meet the
i

tion of the
use

of

which

of

must

necessity

first

we

place,

open
Warrants 50c

1949-51

to

:

Gaspe Oil

Warrants 25c

y

'

to

of

on

Warrants

.1952-???

'i

Are

-

(Can.)

You

10c to $1.30

Interested

Capital Gain?

Read

in

abuses, which the

"Cooperation"

means

see

that

an

important result of this

are

our

Point Four efforts will require

>
new

a

* ''

ence

many

that's coming

one

as

well be substantial.

economic
•

shift

and

to 15.63.

up

sectional differential elimination.

When

The result is

a

per

to help, in a small way, to pay for the package.
This

will furnish

the

basis for the

sixth wage round.

the ante, this trade

Once

authority observes.

Delivery of steel products is expected to be pushed back from
two weeks to a month depending on the type of operation and the
kind of product.
Electric furnace items will bounce back into
circulation much faster than those coming from the big openhearth melt

shops, and of course the full effect of the steel shut¬
"The Iron

Age" concludes.
Automotive
was

production last week moved forward about 1%,
behind the like week last year, according to
Car makers rolled out 92,305 units

about 24%

"Ward's Automotive Reports."

the past week, compared
before and 121,492 in the

with a revised figure of 91,074 the week
like 1951 week.

'

Farmers'
•

in 1952 will be the highest on record,
prediction of the United States Department of

expenses

according to the

.

.

Continued

WE TAKE

on

page

37

PLEASURE IN ANNOUNCING THAT

MR. E. BATES MCKEE

HAS BEEN ADMITTED AS A GENERAL PARTNER
AS OF APRIL 15,

"

1952

^

'

let not the implications'and agitation-

strategy displayed here

nor

BACHE & CO.
Founded 1879
members new york stockftcurb exchanges and
other leading stock ano commodity

;

the political ma-

? neuver toward Germany are laughing matters!

i

this trade journal.

the previously described offers

securing adher¬

•'

this week—"voluntarily" or by
with labor, if steel people

extended to the Western democ¬

stemming from the Conference be belittled. Neither the

send $2 to the pub¬
lishers, R. H. M. Associates, Dept. C,
220 Fifth Avenue, New York
1, N. Y.
or
send for
free descriptive - folder.
copy




are

:

The government will "negotiate"

•

politically necessitated East-West trade prohi¬

In any event,

.

your

to her

bitions may

avenues of their

profitable purchase and sale—describes
Current opportunities In Warrants.
For

place,

markets

"

It discusses Warrants in their different

phases—explores

for export

;

Although both sides have repulsed this settlement, it.
the

eco¬

raising

• ;

their industry—will lose

getting

invitation to them to play the Big Powers off against

and financial cost to the United States in

of common stock warrants"
fry Sidney Fried.

like

un¬

racies, particularly for strategic materials, the pressure on

...

the speculative merits

<;

over

again the steel industry has little say on ttib outcome of its wageprice picture. And once again other industries will have to meet

accompanying strings and

colonialism's

ancient

In the second

$3.50

1951-52 Selbnrn Oil

5

i

the cap¬

areas,

each other.

,

$25

control

hour by WSB figuring, or close to 27
cents per hour costs the way steel firms figure.
It is expected that when the contract is agreed upon the gov¬
ernment will allow a price increase of $5 a ton (or slightly more)

coun¬

through the blandishments of Uncle Joe play¬
ing Santa Claus to the world's underprivileged—with the
Radio

and

on

of the ante

Hoffman

.

throats, it states.

package of 22.5 cents

is

nomic

add to the cost of such
garments."

1948-50

„

left the choice

fringe is computed on a cents-per-hour
1.75.
This would mean 17.38 cents an
hour, to which would be added 5.1 cents fringe—holidays, vacation

a

offensive may well be
materially increased cost of
foreign aid by the United States in two directions. In the

competisynthetics, the

newer

-j

if the Sunday (as such)
basis over two years, it is

the United

continuing strategic attacks

.goods without strings, if not without cost.

serviceability of viscose
constructed

'

down won't hit consumers for about two more weeks,

the

ceasingly hammered in.

dictates, it has been demonstrated
well

were

Cents-per-hour in the Feinsinger plan add

barter

on a

proposed Stalin Plan would allegedly eliminate,

in

no

fail to fall into line, continues

free trading.

are

the

force.

accentuated national

on

like

that

'

contract

a

people—with

basis.

looks

thq nostrum for settling all the world's

from

on

if trade existed in

as

what

rayon

companies, the magazine asserts,

acquiescing to

year

international trade, which

try at least,

what

~

:

.

,

Basis for the compulsory arbitration will be WSB-boss Fein-

(among which Canada is gratuitously included), and

italist

house¬

privileged to

-

singer's plan.
It calls for a two-year contract.
The "two-year
plan" includes the Board's recommendations, refigured on a two-

its economic

maintenance

or

The steel

down their

prospective surpluses

hold fabrics. As long as the men,
women and children, in this coun¬

they

*

but

tries
,

sumption is in apparel

a

vacuum.

Point Four.

two-

thirds of all man-made fiber

'

(if not all) of their anti-inflation stand. They might escape
from the pistol-point negotiations without agreeing to the union
shop, but the cents-per-hour raise and the fringe will be crammed

the Chinese-British 10 million

"The United States must lift

The other chief focal
'

maintenance expenditures or other

elements,"
Goldberg said, adding:

•

1

most

it is for her stagnant shipyards before

as

and international

greater

cost-reducing

per

blandly assumed to be premised

service, higher
ratios,
lowered

strength-weight

Italians.

is held forth

applications due to

their

Germans,

nonpolitical

that many of the newer 'miracle'
fibers can yield a better dollar
value in

example,

Iron Curtain" is

of the fact

aware

on

'Steel

discussions,

pound deal, the temptation of ready markets for their

200 million pounds.

spme

j

Figures »
Monday; of this week set output for the Week begin- \

dictated by the government-union
coalition or having it imposed upon them.
Either way, states this trade paper, the steel wage case was
'moving nearer a solution, though collective bargaining had been
reduced to mockery.
With the full weight of the Truman Administration thrown openly onto the side of Phil Murray's United
Steelworkers, bargaining had become a one-way street. As was expected, the union had maintained a bristling "all-or-nothing"
stand, rejecting each industry offer as the companies bargained
themselves closer to Wage Stabilization Board recommendations.

depressed textiles is being dangled before the British and

the

in

imports

For

prep->

as

shutdown occasioned by a strike threat

a

or

re¬

viscose

fibers

postwar ITO

during

about 90 million pounds, a total'
consumption of about a
billion
pounds is indicated, he said. By
comparison,
production
of
the
newer

Havana's

from nations burdened with actual

Goldberg

With

released

of

Speaker after speaker from the Eastern countries cited
specific products which his country is ready to buy

thereof.

forms

and

severe

any

manufactured

were

United

.

.

,,

the

ported, approximately 865 million
pounds

Woods

insurance?,

week, but |
before.
;j"

has warned the steel industry to reach a wage
agreement this week "or else," according to "The ? Iron Age," ^
national metalworking weekly.
Washington officials deny this,
but the threat was made.
:
'
1.

'

present-day interna¬
physical supertrappings, including simultaneous interpre¬
ting and delegate- limousine car-fleets,
were its
wholly unique composition and

depose

loss of the empire built up

the;past 40 years."
During 1951 Mr.

by 470;
gathered at

conscientiously with broad and basic problems and
on trade and
currency questions per se, the
goings-on staged here instead manifested high-level polit¬
ical strategy,
furthering political aims via the trade fair
technique for attracting customers.
t

rayon

take

year

The government

concentrated

of

New

confidence

unemployment

production fell noticeably the past week

made for

were

•tons.

dealt

Julius B.

Int.,

for

just prior to the seizure of the mills by the government.
\

Whereas former economic conferences, from London's

of

director

Co.,

expressed

Steel ingot

arations

Roosevelt-Hull-Moley embroglio in 1933 through wartime

fibers,

research

in propos¬

'Claims

notwithstanding this, were 33% higher than the

..

conference

aims.

;

While other speakers
vulging progress in the
of

maneuver

that .time.

at

benefits continued to edge lower for the tenth straight

-

clusion of the usual

re¬

branch

new

\

a

•ning April 7, at 62.3% of capacity or the equivalent of 1,294,000

tional

search, this represents an oppor¬
tunity to have a hand in the un¬

folding

had

,

are

fiber and textile

in

:prevailing

the spacious Dom Souzov (House of the
Trade Unions).
Contrasted with its in¬

of
superior

offering

:

"economic conference" attended

array

To^ those of us who

con-

the heels of the

nationals from 45 countries

hazard. To the ultimate consumer,
this'- means
an
opportunity
to
between

on

was
elaborately formulated here
through the technique of a new kind of

field

dustry," he continued, "this repre-'
sents opportunity. To those who
resist
change, this represents a

choose

\

This

"To the alert in the textile in¬

:

parley results.

sive.

wealth

the

J
somewhat depressing effect upon total
industrial production last week, and as a consequence a slight
decline occurred.
Compared with the similar period of last year,
it was noted that aggregate output failed to equal the high levels

autonomous

an

Industry

The steel dispute

Germany, in\ the
economic sphere as well, it has launched
an
important harassing anti-West offen¬

provided the textile industry with
new
degrees of freedom, which
are

of

Index

Failures

,

as

political

ing establishment

Price

Business

further po-'.

to

MOSCOW, -TJ. S. S. R., April 11—The foremost

-

Trade

Auto Production

and

Increased foreign aid costs of

U. S. foreseen

!

;

Point Four aid

generous

elusion to'this Conference is
that,
Soviet's clever and effective

suc¬

series

a

more

litical objectives.

Retail

Commodity Price Index
Food

International Conference, urging Silken Curtain
for trade,
dangles bait of needed business orders

.....

data,. plus

Production

Carloadings

v

State of Trade

By A. WILFRED MAY

some

.

Steel

Electric Output

innumerable- variables, and
only a small beginning has been
made
in attempting to
unravel

are

performance

5

(1597)

Important Implications

.

field

a

The Commercial and
Financial Chronicle

.

acceptance

more

Dr. Heckert said:

.

.

exchanges

36 WALL STREET, NEW YORK 5, N. Y.
Telephone: DIgby 4-3600

/.

,

-L-i

v

6

The Commercial and Financial Chronicle

(1598)

established

Near Term Economic
By ROY L.

Prospects

wise,
few

Risks in

although
during the past
currently some

is

months,
above

the

of

levels

Thursday, April 17, 1952

.

peak

income,

stable

.

a

Investing in Chemical

Process Industries

year

is apparent that the selec¬
adjustments
of
production
prices have been ~ absorbed

ago. It

describing counteracting forces which have kept the

tive

national economy

stable in recent months, Dr. Reierson lists
major factors in economic outlook: (1) the pace of defense

and

without

spending; (2) the trend of capital outlays; (3) building and

the

construction

f

personal

relatively

REIERSON*

5%

as

all-time

new

in the first quarter of 1952. Like¬

Vice-President, Bankers Trust Co., New York City

After

a

.

adverse

an

effect

By R. S. ARIES and RUDOLF M. CZINER
R.

upon

Consulting Engineers & Economists

omy.

spending; and (5) busi¬
ness
inventory policy. Takes optimistic view of continued
business activity, but lists as imponderables: (1) the labor
situation; (2) international developments; and (3) the out-

health

general

the

of

1

S. Aries & Associates

econ¬

For about

trends

a

have

contradictory

year,

been

some

justments
prices
p r

ex-

ary

ad-

the early months of 1951. The im¬
position of price controls may
have
helped
to
dissipate
the

very

real

forces that

were

scare-buying

com¬

con¬

terials

of

civilian market.

cant

Federal

has

appeared in
few

a

adjust¬

wid espread

Roy L. Reierson

painful, have remained
selective, and have not been accompanied by the general down¬
in

incomes, output, or em¬
ployment which is usually asso¬
ciated

with

such

price

aggregate

only

a

The

process.

level

has

eased

slightly,

and personal
production and gross

come,

in

authorities

ex¬

the economy during the

in¬
na¬

tional product are at record post¬
war levels.
•;,
,

it

prices.

business

The

activity

main

in

and

support

the

of

provided by the
rapid increase in the rate of de-

economy

some

instances

town

the

restraining influence.

a

year;

turn

ments, though
in

for

has prevented the
selective adjustments from snow¬
balling into a large general down¬
past

others. Yet

and

cur-

applied by the

measures

to support

weeks

these

ma-

some

Another set of forces has helped

reduced

work

over

to

Also, the restric¬

Reserve

ercised

industries,

and

in

tive credit

among

production

siderably in
price, signifi¬
unem¬

strong in

so

Controls

contributed

tailment

inflation-

mentality

consumers.

have

ployment

factors

We have

in

dropped

other

served to moderate the

oduction.

Some

various

the

and

modities

Finally,

fense

spending; such expenditures
by close to $20 billion

1951.

Another

porting factor
about

$5 lk

spending

important

sup¬

the increase by
billion
in
business
was

plant and equipment
in 1951. Thus, these two important
on

factors together contributed about

$25

billion to the annual

national

rate

of

,

Economic

Developments

These developments may be ex¬

plained

by the operations of two
divergent sets of forces during the

production, consequently, decreases in the output
of textiles, apparel, paper prodand

ucts

have

past 12 months. One set has been

by

responsible

the

selective

stems

largely from the improve¬
ment in the military situation in
Korea
in
the
early months of
1951, which was reflected in a
significant diminution in the war
psychology that had gripped con¬
businessman and govern¬
ment official's in the months fol¬

the

Korean

outbreak

Abou

a

the

in

needs

defense

of

ago,

consumers

providing against
began, instead,

and

to live off inventories accumulated
in the two post-Korean

buying

sprees.

This

decline

buying

hit

retailers

in

consumer

just

as

de-

of
of

peak

it

and

identical

with

of

now

Prices,

Money alone is not enough. It chemicals. Drugs were made by
on plant and equipment;
takes more than available
capital the drug industry; fertilizer by
(3) building and construction ac¬
and
a
willingness to enter the the fertilizer industry; foods were
tivity; (4) spending by consumers;
chemical
process
industries
to processed by the food
and (5) business inventory policy.'
industry;
paints and pigments by the paint
The
international
situation
spending

re¬

The

last

almost

measure

omy,

record

other

levels

important

of the state of the

econ-

have been generally soft in

However, the sub-

stantial declines have been limited
to
commodities
such
as
inter-

national
rose

of

raw

and

the threat of
wide

materials,

sharply

war

after

the

which
an

conflict

which

outbreak

subsided

once

immediate world-

began

to

sive

*

1

^50 and early in 1951, and

tHhntpH

tn

a

ri,JrSnn «?
textiles,

-!l
ahd

of

An

record high, and is still 10 to 12%

ThiS ab°V-e pre"Korea levels- The

slow~
frs yre~ movlnS' consumers' price index
ln • Ju C°n~* lncrease^ ra^her steadily throughln the
?Ut m0St+?f
in
past
£oods, especially few months has it levelled off.

consumer

durable

goods.

factor

in

Judged

by

some

comprehensive

of

the

the

tion

out¬

of this

scope

and

When

further "Koreas"

no

tion

expansion of the war, but
foreign "affairs will remain

no

that

unsettled

and

that

there

will

peace.

most

~

dustry
Spending

Based

—

on

this premise regarding the inter¬
national situation, the outlook is
for

further

a

defense

in

the

spending in

somewhat

a

rise

1952,

lesser

rate

but at

than

in

into

would

security
around $20 billion

appear

the calendar year

1951.

1952, which

expansion

same

as

in

of such

success

a

become

far

national

Recently.,

however,

steps

have been taken to extend the de-

that

suggests

increase

an

of

defense

spending by perhaps $15

billion,

or

somewhat

reasonable

more

less,

estimate

is

a

the

at

moving

venture

a

part of these

a

industries.

The

fast-

list

of

manufacturers who have failed
in

their
the

eludes

efforts

fields

and

the

of

some

branch

to

in-

distin-

most

their

in

so

out

industries

process.:

guished firms

respective

such

represents

areas

of industrial and financial

In

trying to appraise the im¬
of such an increase in de¬

pact

fense spending 011 the economy, it
is necessary to keep in mind that

practically all of the increase
will

for

go

and

arms

in

con-

struction. In contrast, perhaps not
much more than 60% of the inin defense

crease

for

went

these

spending in 1951

Thus,

purposes.

though the increase

even

these

in

de-

fense spending in 1952 is

likely to

be less than that which

occurred

in 1951, the impact upon
heavy
industry will not be significantly

different.

fields

economics
ess

Many
cessful

chemical

companies,
have

their

in

sify into

found

the

proc-

formidable hurdle,

a

other
hand

-have

the

of

industries

other

moment.

by

Mr. Reierson before
the
Manufacturing Conference
of
the
American Management
Association, New
York City, April
7, 1952.

been

the

on

very

efforts

sue-

diver-

to

which

However, the economic impact'
defense spending is generally

feR

months before disburse-

some

ments

actually made.

are

cuently, * if

Conse-

that

Just why do some businessmen
find the process industries such

dangerous

What

grounds?

the /.pitfalls: on
which
all too often stub their

are

investors

science is still

businessmen

most

chemistry

This lack of

pecially

(the

understanding is

true, in

to

respect

which

drug industry begin?
duction of the

makes

itself

felt

chemical

industries

risks

and

hazards

questions
twilight

effects

often

rience

the

special

change.

gained
all

investor

the

in

its

old

...

against

STATE AND MUNICIPAL
BOND'S

CORPORATE BONDS
LOCAL STOCKS

a

support to the economy
significant downtown,

for

petitive
ical

the

adopted.

leave

of

the
It

chemists

more

next

cacies

of

ordinary

therefore,

program

is not likely to

the

banks

cally

This company is
Uranium ore from

and

in

industries

the

and

the

of

or

additional

stimula¬

on

nium may

not

start

development
other claims. —

Ura¬

be the basis of

new

industries—new fortunes.

more
you can

chemical

If

afford to speculate—

buy Utah

common

stock

and

it

for future

put

away

now

growth possibilities.
To encourage the production

of Uranium ore, the Govern¬
has exempted from the

ment

investment

profits tax companies
engaged in Uranium mining.
excess

process

Inquiries invited from

investment

the

of its

extensive

program

begun to use techni¬
specialists to help

analysis

producing

The Atomic Age is here.

trained

provide

soon

an

procedures

and

some

claims, antHwill

extent that of late finan¬

have

"

Selling Under

,

new

speaking,

41c Per Share

complicate
to

business

defense

months,
much

few

Strictly

,

has

COMMON STOCK.

The intri¬

institutions

period of rapid

name
„

Utah Uranium

chem¬
is

companies.

cial

the

.

PoM-ihilitieA-

the

chemistry

process

less,

After

the
,

Piopt

com¬

surprising, therefore, to find

an

build-up.

Consequently,

decad

.

manager

business.

such

recent and current

the

in

GROWTH STOCK

opera¬

special

conditions

process

but the support

will obviously be
relatively, than during the

has

term and

a

.

W.

expe¬

in

siderable

t

.

engineers in responsible positions

EST. 1894

of such

definition.

wjthin the

mechanical

business-

and

unprepared

Business

per-

provide

industry

of

too

will

The com¬
Obviously,

raised

be

can

zones

of

tions,

longer,

opportunities therein.

brokers and dealers

tion to economic activity.

Definition
Business Spending on Plant and

Equipment—Business spending

RHODES-HAVERTY BLDG.
WALNUT 0316




ATLANTA 1, GEORGIA
LONG DISTANCE 421

on

plant and equipment is apparently
on a plateau from which a further
important increase does not ap¬
pear
■

*..

to be in prospect. The rate of

Continued

on

page

26

?;

become too limited to give a clear
indication of its scope. Too many

face, in addition to the

ordinary

con¬

slowly but steadily, and
probably

i

,

.

drug?

through¬

ing projected for 1953, and

increased

crude

product?
into pills?

es¬

and

has

The

The

the

the

The continued high rate of spend-

product

pro-

pounding
term

the

In the

refined

>

the'

material?

raw

intermediate?
The

out the chemical industries. These

which

,

goods,
the plaschemicals? What

about; drugs?
Where
does
chemical industry end
and

college

financial

.

powder

:

to the contrary).

course

and

i

solid

,

shaped into rigid
industrial

or

tics industry or

unknown art to

an

ihdustries

■,

a

be

financial

business,

mi

When

talking about

we

Basically, it refers back to
the inysteries of chemistry.
This

chemical

seems to be in line with
current thinking and planning in
this field—we are approaching the

to

toes?

the

assume

t

Reasons for Investment Risks

natlonal

,

it

consumer
were

been

rate of defense spending will increase only moderately after the
end of this year—an assumption

we

and...

ethy-

as

gas,

could

dynamic qualities of this science,

of

crude

■"chemical process industries

operations.

process

economy is currently Operating at
record levels. For
example,' gross
*•
^
i

a

merized
and

of'

.011

small frac¬

ethylene, and made
a liquid, vinyl chloride
monomer,
then took this liquid and poly-,

Rudolf M. Cziner

Robert S. Aries

Dr.

make

1951.
According to the Budget
Message of last January, the pro¬
jected increase in the annual rate

spending

very

of the chemical?

or

he took

of

rate

a

petroleum

a

»
oxide,
isopropyl * alcohol;
acetylene, etc., was such manu-'
facture part of the petroleum in¬

point where the build-up in the
defense effort will be having its
maximum effects on the economy.

the

he took
of

lene

be-

.

r

Defense

considered

was

produced such chemicals

real progress toward a genuine

no,

Only the actual produc¬

chemicals

industry. The work of the chem¬
ist, however, complicated matters.

appraisal; as a basis for this an¬
alysis, it has been assumed that
there will be

of

within the domain of the chemical

haps

address

indicators,

economic

the

look—is beyond

diminish.

+Krfri!Lre^n
g1 rec,eive,d °n The comprehensive index of
Jff
FS ?
wholesale prices is only moder?o*n'JT
buylingWav! atelY (some-5%) below last year's

lrdGuTf/haCrta-ed
fnifim-

industry.

which may well be the most deci¬

1952

the

(1)

business

(2)

in

ago.

year

are:

These

spending;

this

industrial

reached

is
the

the

fense program over a longer period
than formerly contemplated, and

output

activities.

index

the

spring,
a

months.

coming
defense

on

over

activity
as the aircraft industry,
banking,
etc. Although eminently successful in their own endeavors, firms

production, as a result, has not
changed very much; during the
past six months it averaged within

recent months.

year

lost interest

future

of

war.

expansion

to

business

chemical industries, they cite problems
facing average
investor, such as selection of raw materials, application of
process, and heavy expense of structures and equipment. Fore¬
see vast
growth in use of chemicals throughout world.

to

goods

approximately

aggregate

sumers,

lowing

the

2%

of

five

of

are

offset

durable

consumer

been

lated

for

downward adjustments in produc¬
tion and prices. This set of forces

_

-

eco¬

likely
influence

that

significant

a

is about the

In the field of

appraise the

consideration

~course°

the

spending during the past

year-

to

factors

have

■

Recent

effort

major

was

increased
in

in

Outlook•'<>':
An

in

evident

American economy.

perienced

nomic outlook at the present time

■1

Major Factors in the Economic

of coming elections.

come

,

consumer

Stressing knowledge and technique, along with adequate
capital, as factors in success of chemical process industries,
authors point out these industries face not
only ordinary
hazards of business, but also the
special effects of chemical
change. Though stating great investment opportunities exist

involves

activities; (4)

r

of

Chemical

What exactly
cal process

Process

Industries
are

TELLIER & CO.
ESTABLISHED 1931

these chemi¬

industries?

How does

chemistry complicate their affairs?
Until recently the term "chemical
industry" denoted that area of
industrial activity which produced

42

Broadway, New York 4, N. Y.
Tel. Dlgby 4-4500

fete

3J=SJ

Volume 175

Number 5108

'

*■

this

term

This
not

chemical

a

that

means

in

reaction.

production,

only is the shape and

appear¬

ance

changed, but also the molec¬

ular

structure.

the

fertilizer

takes

phosphate

it with
its
s o

acid

an

insoluble
1

This

b le

u

which

rock

to

that

means

industry,

which

and

treats

change it from

form

to

water-,

a

combines

sand

and

-

soda

ash

in

manufacture. This

clearly distinguishes these indus¬
tries
from
purely
mechanical
operations which take a raw ma¬
and

reshape it, add to it,
paint it, etc. In the latter indus¬
tries, after all work has been
done, the original raw material
is still

is

the

in

interested

-

able.

new

than

it

But

that.

goes

With

further

even

one

mate¬

drug, he can start
by-product of the rial, our investor often may have
to
choose between a number of
or a fermentation
If
product from molasses. With syn¬ different operating processes.
thetic
fibers
(the... aerylonitrile he is interested in making acety¬
either

with

raw

lene

like Orion), the choice can
between ethylene and acety¬

type

The

problem

starting

not found in

cases,

under
as;

in

the

the

sun,

brine, to make salt.
terial

complexity

he

gas,

must

all similar in only one respect:

are

they crack

to make sure that the most
effective process is selected.
But
let us not forget that this
selec¬
tion follows his decision of not

What

they differ.

can

raw ma- '

partial

One

Otherwise
an electric

uses

oxidatiok,

Prices, location and availability,

lion

dollars.

with plain

one

oxygen.
one

He

or

Here,

two mil¬

certainly

will

there

is no assurance that, even
after all these development tests,
a
full-scale commercial unit will

best

icals

must

the

process?

a

inventor

look

Obviously, the

investment

costs for his

and

operating

desired

capacity, the
acetylene, and all the other

best

life

and

death

With all

ness.

resolved,
process

investor risks

our

in

must

found air, the other with

be

throughout the industries.

for

by heat.

even

This

the

still

features
of

busi¬

variables

investor,

make

will

of

these

however,
that

sure

the

actually perform

but

has worked fine in the lab,
to now, all commercial

up

attempts

Certainly
in the

the

they

have

laboratory and in

Sheet

-'

new

steel,

into

pressed

operating coot.

J'bugs," but to the layman they
"spell

trouble.

to

A

be

can

bugs.

that

see

chemical

people

keep them at

a

ahead
can

of

time.

actually

look

window

and

Not

through

A

tell

that

it

many

glass

is

made

from

sand.
Very few readers of
"Vogue" recognize their perfume
as

coal

a

product.
Acetylene is
associated with welding

usually
and

metal

cutting, not synthetic
rubber, plastic raincoats, shower
curtains, textiles and other con¬
products.

sumer

goods

this

the

industries

process

uo.

in¬

all

companies

place

in

their

"new"

from

Summing

clude

chemical

of these

all

made

gas.

chemical

Yet

be

can

welding

which

operations

reaction

to

some

uie

a

create

a

material.

Let's

little

just examine chemistry

further.

This

business

a

of

changing the structure of a mole¬
making a new compound

cule and
is

the

real

foundation

chemical

Chemistry
attitude

of

the

companies.
change, and this

process ■,

means

directly

and

indirectly

influences chemical business.

search,

one

of

process

the

tinually
of

of

the

opens

opportunity.
proliferous.

a

new

con¬

avenues

Chemicals
The

are

synthesis

product invariably re¬
the discovery of a long

The

growth of American Cyanamid

new

sults

list

Re¬

marks

industries,
up

very

of

trade

in

derivatives

of

made from the

ethylene.
75

Up

found

can

be

product. Take
this time about

fertilizer into

a

one

producer of nitrogen
of America's

new

to

commercial

been

which

Company from

for

reactions

this

of

diversified

leading

chemicals

has-been

steady and consistent.

one

lene

oxide,

long series

a

of

use¬

Growth

was

company

inherent in the nature of the

many

new

and

increasing

ever

fields. In addition,

has paced its expansion to

the intensified demands for basic

meet

of its derivatives, ethy¬

only

products that find

application in
the

have

From

gas.

manufacturers

spread in similar ways to provide
useful

chemical materials in industrial

processes.

ful products can be made, includ¬

ing permanent-type antifreeze for

explosives, etc.

cars,

The chemi¬

cal businessman is faced with this

of

problem

change
induced
through research. Not only must
he accept the risks of such change,
but he must try to adopt research

to his operations and anticioate
changes. The surest way for a

chemical

companv

Where

ern

very fast, a
figuratively must

economy

"run"

our

mod¬

moves

just to keep

with

up

com¬

petition.
Problems Facing Average Investor

The

virtually all

serve

industry. One calcium

cyanamide-derived chemical alone—melamine—is the

source

of

are

compounds which

effecting outstanding improvements

in such varied

leather,

products

as

textiles,

paper,

plastics and surface coatings!

Other branches of the

Cyanamid tree have

country and abroad employ over

20,000

people and produce

items for
its

more

over

5,000

than 200 industries. And

staff includes

more

than

1500 tech¬

nically trained personnel engaged in
research and
This is

a

development work.

part of the picture that makes

Cyanamid outstanding for growth in the
rapidly expanding chemical field.

industries.

greatest handicap lies in

many

after

chemical tree whose branches

investor faces
problems when he looks

to the chemical
process

;

this

average

numerous

The

Today, Cyanamid's forty-two plants in

cyanamide. From this seed has

decay is to

to

ignore progress.
process company

company's original product—calcium
grown a

the
alternatives available. Even

he has

selected

the

product

he wishes to manufacture,- the in-

vvestor is confronted by the serious
task

of

selecting the

best

(most

profitable) method of manufac¬
turing that product.
Take raw
•materials.

example,

Ordinary
can

be

alcohol,

made

from

for
corn

american

and other

grains, molasses, natural
gas, and petroleum (among other
things).
If our friend, the in¬
vestor,

wishes to make industrial

alcohol, he must, therefore, choose
the

best

raw

material




available.

30

Gia/tamid company

UfanaOUi

ROCKEFELLER

good

Continued

pilot plant, but all too often,

the

a

have

minimum, but

"smell"

its

with

so

industries.

can

in

used

was

to

to try to foresee these difficulties

for

Not

chemical

The aim is not only

the

steel

new

expected

auto

manufacture.

other

The chemical engineer calls them

example,
shape of an
body, welded together with
other parts and painted, but after
all is said and done, anyone look¬
ing at the. automobile can still
is

In

have proven
far more expensive both in initial
investment and the

these

tested.

insur¬

processes

plant

worked

into

cases,

especially true
for the product under discussion,
acetylene, since the natural gas
processes are
still relatively un¬

This is

run

difficulties.

as

indicated.

have

mountable

identifiable in the finished

goods.

7

perform
similarly.
Chromato¬
using calcium carbide for making
graphic separation of mixed chem¬

acetylene.

selected constituent

a

of natural gas

Another employs a regen¬
the sun. arc.
Two others use
dehydration of erative furnace.

and

solar

natural

not two, but at least four
manufacturingprocesses.
They

isolated

raw

from

decide

choosing

of
or

between different

materials is

try

a

coking of coal

since the chemical process
this industries literally use everything

The key to
through heat.
definition, therefore, is a chemi¬
reaction

doesn't

tuberculosis

lene.

chemical process industry. So is
the manufacture of
glass, which

terial

he

If

be

a

cal

sion.

nourish

compound
plant life, is

have the however, are not the only factors
often than not,, which determine what starting
deci¬ material to-use.
Obviously, a
This situation is not unique. suitable process must be avail¬
he

Sometimes

choice, but more

he must face making such a

phosphate

can

(1599)

i.

11

t

.4

'

any
industry
manufacturing proc¬

utilizes

Chronicle

The Commercial and Financial

.

denotes

which in its
ess

..

PLAZA, NEW YORK 20, N. Y.

engineer

these
on

bugs

page

39

I

(1600)

' '

The Commercial and Financial Chronicle

,

Continued from page

The Future

The Kaiser-Frazer-Otis controversy.

SEC still bellig¬
Objective view imperative. Universal freedom involves
alert protection of individual freedom.

erent.

It is

now

inforced

knowledge that the United States

common

against Otis & Co., and has dismissed the com¬
plaint.
'l
' :
v
• .7/
This may not be the end for there is talk of taking the
matter before the Supreme Court of the United States,
Which will involve a determination by that Court whether
it will take jurisdiction of any additional review.
This
presents an involved legal question into which we do not

Wall

,

propose to enter.
In this particular

Instead of

adopting

Broad

September 9, 1948

"The

we

a

tuted

by the NASD

of justice

gree

can

Where

■

tivities.

We

some

15

books

and

respondent's customers.
SEC

records

and

respondent is ultimately
relief. There can be no redress,
extensive damage."

February 3, 1949,

we

no

!

Also

M

f

M

M




i

ask the
V,

specialists in the

industry.

'

Company.

We have done the

following types of

studies for manufacturers,

underwriters

and investors:

Light

•

&

Co.,. 209

available

are

circulars

United

on

Illuminating,

r

r

Rio

Dei

,

Analysis.

'

.

,

...

Selection

of

Invest-

for

Projects

ment.

V

-

Producers, Ltd.—Analysis—Hill

Build-

•

,

for Pro¬

Use.

spectus

& Co., 621

Richards

14, Calif..

Studies

Techno-Econoraic

Also available

•

Techno-Economic

Audits

of

Exist¬

analysis of Scurry Oils, Limited.

an

Eastern

Air

Wall

35

New Investment

;

.

South Spring Street, Los Angeles
is

<

-

•

Con-

New Haven Gas Light, Hartford Electric

Light and Hartford Gas.

-v

W.

circular—Chas.

Street, New Haven 7, Conn.

Church

7. ing, Detroit 26, Mich.

Merger and Consolidation- Investi¬
gations.

Waterworks Bonds.

Power—Descriptive

&

L. A. Darling Co.—Analysis—Moreland & Co., Penobscot

Lines—Analysis—Walston, Hoffman

Street, New York 5, N. Y.

,

ing

& Goodwin,
/

.

•

Investments

the

in

Process Industries.

Chemical

•

.

El Paso Electric Power
111

•

<

Company—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.
*.\1

Globe-Wernicke- Co. —Analysis —Westheimer
322 Walnut Street, Cincinnati 2, Ohio. .7
,

with

7

and

A copy of
and

V:-

-

V-

'

' 1

7

Company,
'

-

ess

\

on

•'

Continued

on

page

39

the graphs showing growth

development of the chemical
industries
this page

Write for
—a

will be

our

Commonwealth Gas
Southwest Gas

proc¬

shown in the article

as

sent

request.

on

newsletter Chemonomict

periodic review of current finan¬

cial and economic

no

developments in the

chemical process industries.

Producing

Primary Markets

"

.

'

'

'

&

Members:

*

74

fflfcH,

CONSULTING ENGINEERS

Troster, Singer & Co.

embracing the

have emphasized, we .take no sides in that
dispute. The parties have placed tlieir differences before
f

30

Company—Review—W. C. Doehler Company,

necticut Power,

;

we

i

Stern,

R.S.ARIES & ASSOCIATES

said editorially:

Kaiser-Frazer, Otis & Co. dispute. I

r

&

•

recoupment for such

the SEC and the NASD in their activities

<

Gold Mines and Hudson's Bay

Scranton

+

"Again we envisage the conduct of those two admin¬
police partners operating opt of the same precinct,

+

PROCESS INDUSTRIES,

•

•

successful, there is

aspects of

:

•

Township (Michigan) — Circular — The Cincinnati
Municipal Bond Corp., Atlas National Bank Building, Cin¬
cinnati 2, Ohio.
Also available is a circular on bonds of
City of Livonia (Michigan); Thornville, Ohio, Eldorado, Ohio

istrative

"As

Royal Bank Building,

and

Street, West, Montreal, Que., Canada., Also available
of Calgary & Edmonton Corp., Hollinger Con-

and Pembroke, Kentucky

previous SEC

interviews

the financial

on

presenting

The artfully trained and briefed

a

For advice

.

Exchange Place, Jersey City 2, N. J.

investigators do plenty of damage before the matter
For all of this, despite the fact

On

,

brochure

of

Clinton

gets to the release stage.
that

Edition

Street, New York 4, N. Y.

Connecticut

respondent frequently finds his business prac- *
tically destroyedbefore the issues have approached a
hearing. That constitutes so much additional damage, for

of

Oils—1952

Locomotive—Memorandum—Herzfeld

Arizona Mining

a

examination

Canadian

solidated

public press getting these releases, which in
content are injurious enough, sometimes embellishes them

for revocation

descriptive folder.

studies

are

there is the additional legend

upon

mineral
tech¬

the CHEMICAL

James

said: -'"'i•''■■"v":

in many, if not most, instances
proceedings
of broker-dealer registration are based

and

improved

and commercial

Broad

"The

that

resin

the

of

weight

by

parts

niques under development, many
molded by

Anglo Canadian Oil—Study—Kippen & Company, Ihc., 607 St.

in substance that the action is for the benefit of investors.

so

glass,

With

consisted

have

one-third
of

many

of the parts now being

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

•

disturbing element,
promulgated by the SEC bearing upon its ac¬
have always felt that some means should be

public interest. In

each

of

seen

to

"gunk" mold¬
the combinations
or

filler.

American

ultimately found

have

about

referred

been

"putty"

Many

ing.
we

Warrants—By Sidney

Stock

as

'

to another

are

Common

of

Front

has

East, Winnipeg, Man., Canada,
Toronto, Ont., Canada.

innocent of any wrongdoing'.
■
-W 771.
"Somewhere in almost every release is a statement *
that what the Commission has done or intends to do is in :
the

Merits

rial

period—
Street, New

13-year

a

up-to-date report on the Western Canadian Oil and Gas
industry—James Richardson & Sons, 173 Portage Avenue,

get out of the toils even

respondents, many of whom

,

Tremendous

an

found to control these because of the incalculable
damage
done to

of

with reinforcing
mat and preforms will, of course,
produce moldings of similar phys¬
ical properties.
V made

times

market

and

.

given by a client to
his attorneys. With this further
attempt to invade privacy,
we are
entirely out of sympathy."

the releases

volume

types

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Western

to elicit confidential communications

we

The

laminate.,

moldings

Securities Co., Ltd., 1-1 Kabuto-cho, Nihonbashi, Chuo-ku,
Tokyo, Japan.
7

as

"We express no opinion in the case
against Otis &
Company. We do, however, condemn the methods em¬
ployed by the joint prosecutors, particularly in their efforts

us

a

Tokyo Stock Quotations—Quotation of major stocks—Nomura

absolutely just.

18, 1948

into

,i

R. H. M.

proceeding jointly, what de¬
be expected in such an appeal? Doesn't

"This conflict leads

only feasible way to get a

percent of glass by

Fried—Discussing warrants in their different phases and
describing current opportunities—$2 per copy—Dept. C,

be a rotten abuse? When these
nether millstones start grinding, it takes con¬

On November

is the

high

of 1952—Laird, Bissell & Meeds, 120

growth in the next
few years is expected of what we
designate a compression molding
material. In the field, this mate¬

Speculative

are

siderable means, plus fortitude, to
when a respondent's cause is

by using the parallel
reinforcing mat, since this

fiber

City Bank Stocks—Comparison and analysis of 17

performance over
National
Quotation Bureau, Inc., 46
York 4, New York.

the whole system appear to
upper and

High glass loadings will

be achieved

parison between the listed industrial stocks used in the Dow-

-

disciplinary proceedings insti¬

appeal lies to the SEC.

an

fabric mats, preforms and
fiber, will find its place in the

industry.

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

disclosure of confi¬

type
of
reinforcement,
parallel fiber reinforcing

as

mat,
cut

;

City Banks Stocks—Comparative figures at March

send for free

prosecutors both bodies

& Co., 15

Eastman, Dillon

—

Companies—Analysis with spe¬
cial reference to National Supply Company, Halliburton Oil
Well Cementing, Black, Sivalls & Bryson, A. O. Smith Com¬
pany, and Dresser Industries—Vilas & Hickey, 49 Wall Street
New York 5, N. Y.

activities.

"From the decision in

Bulletin

—

such

Oil Equipment Manufacturing

communications in the attorney-and-client rela¬
tionship strikes us as asinine, particularly when practiced
by regulatory bodies which periodically indulge in
camera

Each

Lynch, Union Trust Building, Pittsburgh 19, Pa.

Broadv/ay, New York 5, N. Y.

dential

in

Stocks—Tabulation—Moore,

Preferred

stocks for first quarter

said editorially:

persistent efforts to force

shrinkage, producing mirror
finishes acceptable to the house¬

5, N. Y.

elaborate and

expect to obtain low

we

can

wife.

Planning

New York

in¬

resin

31, 1952—The First Boston Corp., 100 Broadway, New York

yield

On

this

of

below $30 a share, and a brief resume

Street, New York 5, N. Y.

New York

hands-off policy, the SEC and

a

&

Investment

a

or

Convertible

Leonard

costly series of pro-_
cedures, allegedly disciplinary in nature, against Otis &
Co. In this special one-sided treatment we recognized a
threat imperilling our freedoms and we set out to publicize
the utter wrong of it.
an

issues—Francis

Aviation.

Industrial

private controversy
which the Courts would ultimately iron out, that the pub¬
lic interest was not directly involved and therefore that
the Securities and Exchange Commission and the National
Association of Securities Dealers ought to have steered
clear and should not have spent public monies and mem¬
bership assessments in aiding and abetting any one party
as
against the other.
j
the NASD started

selling at

Bendix

I say that

methods of

find

to

corporating more and more fillers
into the resins. Only when we do

Pont &

du

a

have

we

Co., 1 Wall Street, New York 5, N. Y.
Also
available in the current issue of "Gleanings" is a list of 36

I.

1951; their use has be¬
standard practice in pre¬

form and mat molding.

1

Street, New York 5, N. Y.

High Yield Common Stocks—List of 40 selected

controversy, from the very first,
our
position was absolute objectiveness. We never in¬
tended, nor do we now intend, to side with one litigant "

& Co.,

Bullock

Industry—Study—Calvin

Utilities

Electric

with the use
During 1949,

and

come

Also available is

stocks

was

1950

look at what has

a

done

fillers.

mineral

of

5, N. Y.

Kidder, Peabody & Co., 17 Wall Street, New York
a report on the Texas Company.

take

us

already been

Industry—Study with particular refer¬
First National Stores and Grand Union Company—

to

ence

1

Progress to- Date

Store

Grocery

Chain

Herein lies our

plastics.

future.

Let

obtained

We felt it

send

to

Court of Appeals has unanimously reversed the judgment
lor more than $3 million which Kaiser-Frazer Corporation

against another.

idly improve the economics of re¬

will he pleased
interested parties the following literature:

understood that the firms mentioned

It is

......

Reinforced Plastics

&

/

3

of;

Error of SEC and NASD

Court'* reversal of judgment.

intervention.

1952

Thursday, April 17,

*

N.

Y.

t

.

,;

.

>

'

•

s

'

•

*

U.

i

V-

1

Security Dealers Association

PROCESS

CHEMICAL

1

'

'

*

IN

SPECIALISTS
;

Teletype NY 1-376; 377; 378 J

'

Private wires to

' " '■

•

Trinity Place, New York 6, N. Y.

Telephone: HA 2-2400.
.

ECONOMISTS

INDUSTRIES

„

Cleyeland-Denver-Detroit-Los Angeles-PhUadelphla-Pittsburgh-8t. Louis:

100 Madison Avium, New York 17, R.
1

1

■)

'

'

,

■"I'uniiinii'

T
_

.

* it

i n

.

>1111 nil
' 1.'

.1

I
„>

j

.

j

,

Y.
.1

V

Number 5108

Volume 175

mat

...

The Commercial and Financial Chronicle

materials

(1601)

sr

in

relatively large * rheumatic fever and rheumatoid ♦normally;---This Could account for
Net proceeds from the sale to¬
arthritis," the chemists stated in such symptoms as arthritis in gether with cash on hand are to
Discovery of still another sub¬ their report.
the scorbutic guinea pig."
duction, parts
be uSed to redeem the consoli¬
weighing. up to 75 pounds. Cer¬ stance similar to vitamin B-12
"Any information in regard to
dated Federal farm loan bonds
tainly from the properties possible was revealed in the Wisconsin i ther function of the adrenals might
which mature on May
1,1952, and
and the tremendous sizes that can report.
This substancce, as yet have practical bearing on the
which are outstanding in the
ap¬
be molded with a moderater invest¬ unnamed, is believed to be re¬ function of this gland in human
proximate amount of $198,200,000?
ment in equipment, the future for lated
to
B-12-f.
It was found beings," the report added
and
to ' provide
approximately
"this material is unlimited.
"The fact that the vitamin C
during the B-12-f studies.
$30,100,000 for repayment of com¬
The 12 Federal land banks on
Three scientists of the Kansas content of the adrenal cortex is
Many short-sighted individuals
mercial bank borrowings and fw?
feave claimed that the frontiers State- Agricultural
Experiment rapidly depleted when the cortex April 15 offered: publicly through lending operations.
Macdonald
G.
and opportunities in America are Station, reported that vitamin C, is stimulated to action
Newcomb, their
The
consolidated bonds beingf
by ACTH
fiscal agent, $228,300,000 consoli¬ offered are the secured
tu> longer "what they used to be.
the anti-scurvy vitamin, may be suggests
that
vitamin
C may
joint and
dated Federal farm loan bonds to
I believe all of us wilt agree that necessary for the production of serve as a
part of the enzyme
several obligations of the. 12 Fed*
be dated May 1,;1952, and; to- ma¬
the frontiers and opportunities for
cortisone by animals.and human system responsible for the pro¬
ture -May .1, 1956. The bonds bear eral land : banks.
They are not1
resourceful and imaginative men
are* darger in the field eif tem- beings. They based their conclu¬ duction of the cortical hormones," interest at 2%% per annum pay¬ guaranteed by the government
on
i iorCtd plastics than has been the! sion
laboratory studies on it was stated.,
*
able semi-annually, and are being The banks are Federally char¬
of

preform will

be molded
Today, in pro¬
are
being made

or

amounts.

this material.

Federal Land Banks

2%% Bonds Offered

,

,

ease in any

other fiekl foar gen¬
This is not only a fhM

erations.

from which

thing, but also
we

.a

-

all get some¬

can

we

guinea, pigs.

"fieldsto

worth-while

contributions.,

-

helps

to

guinea pigs with

which

explain
scurvy

why1

"If vitamin

.

.

necessary

.

for offered at 100% and: accrued in¬

hdrmones

develop it would follow that the adrenal
cortex

of

respects to lesions found in

would

not

some

.

C is

the production of theSe

joint and heart lesions similar in

all. make substantial and

can

"This

,H

a

scorbutic guinea
be

able

to

on

a

tered institutions and operate ui**

being distributed der the supervision of the; Farm
nation-wid6 basis through a Credit Administration, which' isfc

terest.

They

are

pig large selling group of recognized under the general supervision of

function

dealers

in securities.

the Secretary of Agriculture.

Reveal

At American Chemical Society's
121st

National

Meeting,

COMMERCIAL SOLVENTS CORPORATION

new

teams of vitamins and

improve¬
ment of quality of others was
Stressed by biological chemists.
A

prominent

HIGHLIGHTS

.

of the
121st National
Meeting of the
American
Chemical
Society at
Milwaukee, Wis., was the revela¬
tion of recent progress in bio¬
logical chemistry, particularly in
the development and prelection
of

- »

1951

was a

year

Corporation. Sales of

Speaking before the Division of
Biological Chemistry on April 3,

] CSC's six product divisions reached an all-time high, a

Dr. Edward G. High and Sherman

;

team

new

milk

and

studies

oratory

indicate

that the vitamin A potency of the
diet can be increased by the addi¬
tion of another vitamin—B-12, the

anti-anemia vitamin —the

Vitamin

report

is required for
proper maintenance of health and
Said.

A

is

particularly useful in prevent¬
ing night blindness.
"It

reasonable

seems

to

pect;" the report asserted,

ex¬

"that

solid ammonium nitrate. Also at

i

gen

Sterlington, the nitro¬

TAXES ON INCOME

tripled at our Terre Haute,

i
Xv

5,465,200

volume expander.

5,177,603
$1.96

$2.22

NET EARNINGS-PER SHARE

3,296,897

3,296,098

$1.25

$1.25

DIVIDENDS PAID—PER SHARE

CSCs tradename for dextran, blood

3,307,900

5,842,444

DIVIDENDS PAID

plant was begun for Expandex,

$3.22

PROVISION FOR FEDERAL

NET EARNINGS

plant was put in operation.
Construction of anew

8,485,503

$4.29

TAXES—PER SHARE
m.

TAXES ON INCOME

pharmaceutical packaging

Indiana, plant and a new

11,307,644

EARNINGS BEFORE FEDERAL

EARNINGS BEFORE FEDERAL

solutions plant was completed.

Antibiotics production was

$49,095,073

m

production facilities and to provide a plant to make

Lab¬

$61,172,149

SALES-NET

expansion program was begun at Ster-

butter

as

rats

on

is

lington, Louisiana, to double ammonia and methanol

nutritious.

more

A $20 million
<

vitamins

of

make such foods

may

record total of $61,172,149. Net earnings were up 13%.

1950

1951
Si

1

S. Wilson of Prairie View Agri¬
cultural and Mining College, re¬
a

TWO-YEAR STATISTICAL REVIEW

of continued development and expan¬

sion for Commercial Solvents

vitamins.

ported

32- ANNUAL REPORT

feature

1,585,278

4,634,893

ADDITIONS TO PROPERTIES
i

i

Production is scheduled for the summer of this year.

the beneficial effects caused from

administering vitamin A
would

tene

or caro¬

enhanced

be

by ad¬

At

Peoria, Illinois, units

vitamin and antibiotic feed

ministering vitamin B-12 with it."
Carotene is

a

into

transformed

body fluids. ;
Previously,
chemists

substance which is

on

vitamin

by

Mar.

31, three
University of

the

of

A

Wisconsin, revealed the existence
a

NET CURRENT ASSETS

$23,742,566

$15,455,377

20,983,085

17,971,954

LONG TERM DEBT

separate fields. These six spe¬

10,000,000

-

SHAREHOLDERS' EQUITY

product divisions establish the sound, broad

base for the

Dec. 31,1959

LAND, BUILDINGS & EQUIPMENT-NET

supplements.

of diversification has expanded oper¬

ations into six allied but
cialized

Die. 31,1951

completed to make

37,572,509

(CAPITAL & RETAINED EARNINGS)

company's development in the years ahead.

34,536,511

new
from of vitamin B-12,
anti-pernicious anemia vita¬

min.

CSC's program

were

First found in the intestinal

of

the

contents

of

is

stance

rats,

called

the

new

vitamin

sub¬

NOW... 6

B-12-f,

CSC

PRODUCT

DIVISIONS

the scientists—U. J.

Lewis, D. V.
Tappan and Dr. C. A. Elvehjem—
said in a report to the Society's
Division of Biological Chemistry.
No physiological function has
yet been found for vitamin B-12-f,
the report stated.
It was sug¬
gested, however, that the new
vitamin form may play some un¬

1J

Ji;,

discovered role in metabolic proc¬

found in high
the
gastroin¬
many animals
such as cattle, sheep, horses, pigs
and chickens.
Its possible con¬
nection with pernicious anemia in
human beings is now under in¬
vestigation, the report added.
Vitamin B-12-f apparently does
not stimulate growth in animals,
the report indicated. Preliminary
research, on the contrary, shows
esses, since it is
concentration
in

testinal

that

the

PHARMACEUTICALS

AGRICULTURAL CHEMICALS

Antibiotics—Penicillin & Bacitracin,

Commercial-grade Ammonia, Nitrogen

Derivatives—Nitroparaffins &

Veterinary Products, Hypotensive

Solutions, Insecticides—Benzene

Derivatives—Riboflavin, U. S. P.

Products, Lipotropic Agents,1 & Blood

Hexachloride & Dilan®

'

of

tracts

substance

new

Butyl, Ethyl & Methyl Alcohols &

Volume Expander

retards

growth slightly.
A brilliant red in

substance

is

vitamin

B-12

cyanide,

as

eral

other

forms of

not

color, the new

converted

when treated

is the case with

sev¬

previously-discovered

B-12, the report declared.

Vitamin B-12-f

was

liver

concentrates,

or

into

with

liver

not found in

though B-12 is present




al¬

in these

ANIMAL NUTRITION PRODUCTS
Antibiotic Feed

Supplements—Baciferm,

Duoferm & Penbac, Vitamin

Feed

Supplements—Riboflavin & Choline

AUTOMOTIVE SPECIALTIES
Peak® &

Nor'way® AntirFreeze, Radiator

Chemicals & Other Automotive Products

POTABLE SPIRITS
Neutral Spirits &

Whiskies;

Rackhouse Barrel Storage

The
t-f *

(1602)

10

fitted to take advan¬

peculiarly

Yishiiisky

Yesterday Iran

—

Today Guatemala

Tomorrow the
By ROBERT

—

set-up. This type

wholly rejected tradition by

mary

weapon,

acterized

De¬

when he

haye

Nations Soviet

General Motors

overcome."
is

business; and stop
V-J

Since

Day

quarter of the world's
who considered

generous

and

of

modern times.

Many of us
who
have
been

rising tide

of

Century

19th

the
a

use

need

pianes,

well as men,
them wisely

also have a new

under¬

Soviet

it

a

name.

and we
the whole subject at

,

,

Past

,

much

So
ByfieId

s

Robert

ings

of

look

closer

peoples whose
friendship we

for the
at

broad teach¬

Let

history.

the

take

us

more

a
recent

cover

Obviously,

time.

and

condense

plify

their

own

borders

lution,
even
when they
were
fighting civil wars at home and
power

precariously.

by

When

Military Force

on

approval from sympathizers in the
visitors' galleries. But the wholle
show was revealing. It indicated
that the
Soviets have a world¬
wide

by written documents. It is mere¬
ly the more easily identifiable as¬

world-wide propaganda
designed to economize
the use of military force. It
a

apparatus

Kremlin.

a

munist

siphon into the

They

utilize

to

seem

government
publication,
every
public
utterance,
every
magazine
article,
every
radio
broadcast or every economic bul¬
letin from which they can glean

every

o± Com¬

worid network

utilizes

infor¬

dragnet of economic

mation which they

whether

upon

by

was*

however communicated—
personally, by radio or

alone,

as it - frequently
clapping and cheers, of

ing,1 punctuated

matter of words

a

Its

malevolence was overwhelm¬

very

is

psychological warfare

means

no

almost pect of

immediately after the 1917 Revo¬

held

over-sim¬

perhaps

handling of it.

our

Soviet

propagandizing out¬

no

smear,

no

no

about it in the American press.

must

we

.

con¬

v,■ sheviki began

Teachings of Recent

cannot

Economizing

side

some

trick,

All of this is still currently a mat¬

Hoover's Warning

vast

arrived.

even

among

we

as

invective,

No

distortion of fact was
and1, in fact, still use similar ter¬ forgotten. You have to hear this
minology
in tneir anti-business sort of thing to understand and
attacks. Frequently they have dif¬
measure
it. It is not enough to
fered only in degree or method. read headlines or brief summaries
far

not

this

mired in mud. Here was

areas

and

will not

used,

They

apart.

cor¬

our

profits.

non-Communist leftists were

propaganda. You simply
cannot grapple with something in
the dark if you cannot even, give

in

many

unless

of

archers

and tanks

we

We have had plenty of warn¬
weight of foot
soldiers.
The day of a wholly ing. Herbert Hoover in the first
mechanized attack by means of volume of his Memoirs, recently
the dive bomber and the tank had published, recalls that the Bol-

of anti-Amer-

icanism

but

we

phases,

its

guns

a

excoriated

exchanges,

porate management and screamed
about
their
alleged
war-bred,

ter of heated controversy,

cept

conscious of
lite

of

that

and

and I for example. They com¬
mented on the action of the stock

you

Communist Party and of our

own

its businessmen,

all

of

most

and

guillible enough to believe it was
an"underdog"philosophy. The
economic programs of the Ameri¬

standing, new concepts, new defi¬
nitions and a thorough analysis of

obsolete

abroad

deeply

are

American

its economic system

government,

tyrannies of the Soviets because
they were in varying degrees in
love with,
or
sold on its social
content or objectives. They were

il¬
lustrated
that the inadaptibility
of
a
military
caste
can
spell
tragedy.
The
German
break¬
through at Sedan in 1940' made

idealistic

people

ganda machine at its best, or from
our point of view, at its worst. No

that many of our

V defeated the French,
whose heavily armored horsemen
were

had some spe¬

jobs to do and I had a ring¬
side seat. I saw the Soviet propa¬

cial

By

States.

United

often

Henry

most

the

assembly line can
as it may, it

Be that

opinion that the

our

started

had anticipated.

English

moving

fast

ourselves,

rightly so,

Thursday, April 17, 1952

.

mental Observer." I

believe it would
promises it made to us.
Second, the Communists captured
an
important section of the socalled liberal movement in the

can

Again, almost two thousand years
later, at Agincourt in 1415, the

population

*—we

and

which the Asiatics

lost
about a

have

we

600,000,000 friends,

over

.

J

keep any

so-called
"struggle for men's minds" is one

avoid intemperate political attacks on
apologizing for American capitalism.

government;

to

'i I ' »

.

foolish enough to

public is just beginning to realize
that World War III has already

our

task

quite recently
said: "They believe they
it to me

got something for you that
neither A-bomb superiority nor the

propaganda machine really gets
into high gear, smearing free people because we let them get
away with it. Classifies propaganda "tricks" into eight specific
categories. As defense policies, declares we must coordinate
own
propaganda efforts; realize business cannot leave
clares in United

■

char¬

ex-Communist

An

sense.

pri¬

III with psychological warfare as
with military weapons merely in reserve.

unleashing World War

ft

this we mean experience could have been more ,,
intellectuals felt frustrating and exasperating than
that collectivism of the Left was to hear, at close range, Messrs.
to use a medical term, sub-acute,Vishinsky,
Baranowsky,
Malik,.
and is difficult to recognize as not as evil and malignant as col¬
lectivism of the Right. They were Kiselev and their cohorts vilify
warfare in the commonly accepted
and smear the United States, its.
willing to overlook the obvious

balanced
capitalistic
of aggression is,

delicately

World?

S. BYFIELD*

Byfield declares Kremlin has

Mr.

and faults,
our national attitudes, deep-seated
traditions
and
our. highly
de¬
veloped, extremely sensitive and
tage of our weaknesses

American Business

vs.

Commercial and Financial Chronicle

,

unions, the W.F.T.U., the

even

most minute support or

the

fancied

fabricated

their

for

support

pre¬

doctrines.
escape them.

and

slogans

Communist parties and their sym¬
Nothing seems to
Kun
established
a
red
l
"■ •past. Of the three attempts to Bela
pathizers everywhere, and an al¬ Unlike the delegates and members
taken for granted. destroy Western Democracy in dictatorship in 1919' at Budapest, most infinite
variety of organiza¬ of the press who have listened to
This is a "cold war" we say, and, this
century,* two have already civilian commissars traveled with tions and- situations.-We can men¬ this torrent of abuse for six years,
no
doubt that is true, but such; failed and the third contest has his army, one to each regiment,
we were
not bored. We were not
tion only a few here. There are
generalizations and slogans may been under way for some years. compelling adherence to the doc¬ excellently
frustrated.
We
were
maintained
kinder¬ merely
be dangerous because they tend The Kaiser unleashed an orthodox trines of Moscow. I saw them op¬
gartens in the Soviet Sector of frightened. It is not enough to say
to obscure the facts and perhaps military attack, preceded by a con¬ erate with my own eyes and heard
Vienna to influence the wives of that the propaganda attack was
with my • own ears.
The
create inertia when we lean too ventional and formal declaration them
workingmen. • There are special designed for consumption behind
heavily on them. If we now take of war. The methods of the Ger¬ Communist line and its objectives wares offered below cost in Soviet the Iron Curtain. Undoubtedly,
another step and identify the use man Nazis and the Italian Fascists at Kassa and Eperjes in Eastern
shops to- undersell privately owned like the speeches of Soviet offi¬
of the "cold war" as a weapon of were somewhat novel since they Slovakia in 19*19* were precisely
competitors in the adjacent Amer¬ cials in Moscow or the columns
Panmunjom. in
the Kremlin, we have progressed, depended primarily upon military the same as at
ican and British Sectors. In Paris of Pravada, it is intended for the
1952. Four of Our Presidents and
but
not far enough.. We must force and were to {that extent
faithful. Yet it is obvious that the
we were told there were 600 Com¬
five
Secretaries
of
State
were
realize the fact that Soviet propa¬ orthodox, but they utilized psy¬
munist organizers on the payroll grist from the propaganda mill is
aware
of the nature
of inter¬
politico-social
ganda is a new weapon and that chological- and
of the Department of the Seine also intended for the "doubtful"
Communism
and
its
history is full o£ examples of new weapons in addition. The Kremlin national
with no duties to perform outside as well as the faithful. There are
propaganda. Their .speeches and
weapons being used unexpectedly has wholly rejected tradition by
party activities. Ditto for 18 shop hundreds of millions of people on
to
triumph over r e 1 a t i v e 1 y utilizing psychological warfare as documents telling, why they were
foremen on the Paris Metro, the our side of the Iron Curtain who
opposed to our recognition of the
a
stronger opponents.
■{;/
•
primary weapon with military
subway system. Ways have been know " little, s if, {anything,- about
Moscow regime should be re-read.
Take the victory of Miltiades components merely in reserve or
.devised to win over shop foremen "capitalism," ."free enterprise," the
They are matters of public record.
and his Greeks over the Persians {secondary. Its points of attack or
in factories and Communist unions system of private property, and a
exertion of pressure
of Darius in 490 B.C. at Marathon. maximum
are
well versed in how to
be score of other economic terms.
;
Communism's Two Earliest ;
Here they struck suddenly with are "behind the -lines" or upon
"soft"
Victories
tomanagement so as to They are not in a position to ap¬
and within the borders of its in¬
an
unorthodox
running - attack
praise, assess, or analyze. Further¬
Two of the earliest and perhaps capture* its favor from rival nontended victims*
Communist
unions. , Communist more*, whatever is spoken in the
quite different from the conven¬
the
greatest- victories of inter¬
have used cultural ex¬ United Nations, whether subse¬
Sub-Acute Aggression
national Communism have hardly parties
tional,
slow -moving
phalanx
hibits in many parts of the world quently refuted or not, bears a.;
been iabeled as such. First, we

always

have

,

*An

address

by

Mr.

of the New York Stock

Byfield, member
Exchange, and its

representative at the Sixth General As¬
sembly in Paris, before the Export Man¬
agers
Club, New York City, March 18,

One of the more dangerous as¬

Soviet
have

strategists

devised1

pressures

1052.

whieh

this

in

feel

they

are

recognition in 1933 and we

too minor
a possible

seems

•

.

uiymprc

we

at"

carries

Summer

will

The Bonds

Banks and

are
are

Maturity

issued

the statutes of a majority ot the'
also eligible for the investment of

in

■).'.]

U.N.

debates

the

and

a.t the Palais; de Chaillot

worth

are

Western

mentioning
World,

S S.R.

allowed

be represented

Ukrainian

the

and

fee* used*

it

intended to

propaganda forum..

a

Soviets

The

never

was

as

and

their -satellites

because

where

they

and

tunists

anything,

use

are

oppor¬
every¬

say

*

S.S.R.

about

much

to

The U: N.

The
in~-

the Soviet
by three
delegations; They are, of course,
the U.S.S.R. itself, and there are
in
addition
the
Byelo-Russian
has

cluded,

Union to

chine

^

in Paris:

here.

ourselves

The last two have

really gets into high gear.

Session

aspects of the recent
sessions of the GeneraL Assembly
Certain

proceedings of the United Nations
where the Soviet propaganda ma¬

use

eligible lor investment by savings banks under
States, including New York and Massachusetts^ The Bonds are
are

is

it

But

>

several obligations of the twelve Federal Land
under the authority of the Federal Farm Loan Act as amended.,

of

Use

Bonds

the secured joint and

and

'

Due May 1, 1956

1952

profes¬

running

are

jumping to promote the imperial¬
ism of the capitalistic monopolies.

Federal Land Banks
Not Redeemable Before

who

sionals"

"people's
their

"paid

the

competitors,

$228,300,000

Recent Paris

.^juiisiw

sins {of

the

and

athletes"

in

hear much

about the virtues of the

New tssue

2%% Consolidated Federal Farm Loan

to

the Soviet track team competes
uie

Dated May 1,

certain mark of authenticity, par¬

No

be ticularly to the uninformed, who,
after all,
overlooked as
propa¬
comprise most of the
\ ' "
•
ganda medium. Undoubtedly when world's peoples.
were
activity

this

The Bonds

enterprise.

free

discredit

to

is that legitimatized the Soviet Union
field and made it respectable before
special propaganda all the world by our diplomatic

pects of the situation today

as

regarding the foreign* pol~

icy of the Kremlin as the States'of.

Pennsylvania

and

York

New

have about
the foreignof our own Federal Gov-;
eminent, perhaps less. But there

might
policy

of various States

each with their

100% and accrued interest

they

They use the U. N.
free peoples and partic¬

own

to

funds under the statutes

time when it suits

their purposes.

trust

ported by ample staffs. Naturally,;

at

smear

ularly

any

free

American

enterprise,

style, because they

can

get away

.with it, and we have left them do

made by the twelve Federal Land Banks through their Fiscal Agent*
assistance of a Nation-wide Selling Group of recognized dealers in securities;.

This offering is

with the

so

for six

As

a

31 Na*»au Street,,

New York 5, N. Y.

representative of the New
Exchange it was my

privilege to attend the 6th Gen¬
Assembly of the United Na¬
tions
in
Paris
in
the
closing

eral

months of 1954.
with
April 15.1*52




,

My status, along

representatives

hundred other

zations,

was

of

American

half a
organi¬

that of "Non-Govern¬

delegations

separate

they work as

a

sup¬

well functioning

team.;Yet this is not all. There*,
Czechoslovak

the

are

Polish

now.

Stock

York

Macdonald G. Newcomb, Fiscal Agent

years

anyway,

are

formance

what

satellites
we

naturally

their

were

of

nations
the

the

and

delegations,: whose

per¬

conforms
are,

to?

namely,

Soviet. Union, If

to be facetious, we

would*

that the- Kremlin operates a:
five-platoon
system,; differing
however, from, recent practices- inr
say

American football in that they are.

all' "Offensive"" and

none

"defen-

Volume

Number 5108

175

6ur

sive" in nature.

The Commercial and Financial Chronicle

.

.

.

delega¬

own

chanical

The Job Outlook

backing of
some or perhaps all of its friends
on
occasion, but the situation is
tion

receive the

may

different,

quite

you

as

may

degree
write

By ROGER W. BABSON

.

Discussing the immediate job* outlook, Mr. Babson, in noting

in

cated

.does

the

they

decline

its

committees.

permit

not

of

aspects

neers

employment

best job bet

now

in

production

of

Headlines about unemployment
these in certain sections such as Detroit
committees and its functions, and
and New Bedford have made de¬
this, furthermore, would serve no pressing reading. Events, however,
purpose. We were interested par¬ are sometimes
each

and

ticularly

in

Committee

which

2,

is\the economic .committee .where
such

subjects

Point

as

nomic-assistance

IV,

eco¬

under-devel¬

to

oped countries, technical aid
grams

and

-

cussion

the

land

-

the

ordinarily

and

pro-.

reform

subjects
In

debate.

are

dis-

for

of

each

committees," including

Com¬

Jmpor-

more

tant than

jobs.

!

greatly<

'

workers.

en¬

by

couraged

They

may

have

snapped up by defense

be

re

cent,,

withdrawal

and

.' 3

:;,-V

.a;

of

paid

goods

President";

companies

around in-kind of
assistants

bull ring with

a

staff

and

It is im¬

greater

fact

the

from

that

a

sumer

in

matters,

focus

as

last Summer

talistic

the

contestants-for

2,

anti-business

ECOSOC and

delegate

Arutyunian
economist

of

a

decline in

and

to the U.

S. Bureau

as

employment in such
clothing, food, lum¬

textiles.

In

the

clothing

Likewise, there

are

about

Mr.

Communist

"slave

to

there
jobs

more

plants than there
about

100,000

72,000

in

in

ment

•

Transportation

15,000
equip¬

character traits

get

faith, in¬
tegrity,
self-reliance,
initiative,
drive, and good health. But. young
as

people must do much better work
than they are now
doing in order
to hold their jobs when business
again declines. However, as I said
above, I am feeling more opti¬

be swinging toward

sense,

common

from nonsense!

away

*

With Chas. A. Day Co.
(Special

to

The

Financial

Chronicle)

is

AUGUSTA, Maine

Harold B.
Henderson is associated with Chas.
A.

Day

&

Co.,

—

Incorporated

of

Boston.

little work

as

as

Albert M. Barnes
Albert
his

M.

Barnes,

retirement

was

who

before

partner

a

in

Dillon, Read & Co., passed away
April 2 at the age of 76.'

pos-)

Moyer Admits

experiencing a "wagePHILADELPHIA, Pa. - On
prosperity"; but some'
this wage bubble will burst April 1 J. Miller Karper was ad¬

day
as

materials

and

think,
to

are

workers'

handling
manufacturers
are
employing
about 160,000 more people.
The college senior with a me¬

This announcement is neither
.

an

•,'

have the stock market bubbles

of

the

past.;

Americans

realize this and

begin to

the

The

rainy

day.

should
save

wage

ought to plan to buy

a

for

earner

little life

mitted to partnership in Moyer &

Co., 1500 Walnut Street, members
of

the

Stock

Philadelphia

-

Baltimore

Exchange.

offer to sell

nor a

solicitation of

an

offer to buy

any

of these Debentures.

The offer is made only by the Prospectus.

in

day

one

line that

corporations

employ

labor"

attention

Chilean

subsidiaries

of

Thirty Year 3.20% Sinking Fund Debentures,
due

sumably

this, referred
to .the
alleged labor policies of Anaconda
Kennecott.

:

Wholly-owned subsidiary of Standard Oil Company (an Indiana corporation)

re-emphasized,
paid

was

:

Service Pipe Line Company

Committee

propaganda

v:

$90,000,000

work

American copper companies. Pre¬

and

Employment

$180 billion next.- After

doing

We

metals,

and

chemicals,

paper.

such

sible for their current high wages.

were a year ago,

in

can

how

Actually,

ther

as

machinery

more

who

men

learned

along with people, and who have

taxes, this could mean
about an $8 billion
increase in
people's earnings, and should fur-'

today

are

in

have

economic

or

members;

particular

the

.

example,

200,000

need

who

increased

con¬

industries

ately

economic

usual

with

such

college to get started on a job.
Business and government desper¬

the entire So¬
the impression

fact,

The

American

65,000

in

are

time

school

any

A.

trained

a

closely together, have Communist
ideology at their fingertips and
are<; skilled
propagandists.
For
the

(

Statistics, there has been

industries
ber

investment,

of all jobs.

articulate

a

viet group gives
of: specialized legal

2

to about

em-,

better

a

of

U.S.S.R.

most

In

example,

although,-

was

graduate

or

boom

1929.

of

never

the

home,

a

accounts.

2.

was

Baku,

and

training.

a

high. Savings are ab^ve
Wages may rise another $15 bil¬
lion, from $i6o bniioni tw y^ar

-

crease

for

savings

up

both

uses

the

2

of

of

doctrine.

propa-

Committee

Committee

vendor

According
of Labor

capital
source

Geneva, Switzer¬ industry there are about 60,000
much of its anti-capi¬ fewer
jobs today than a year ago.

and

The

encourage

which is the

at

panda the Soviet group

in

to

have

we

Committee

into

which also receives the reports of

For

States?

mean

are

understood.

ECOSOC, the Economic and So¬
cial Council, which was in session
land.

picture

For

sessions

committee

generally

Economic

stated,

is

this

increase savings.
The costof-living, however, has reached
present highs because most' people

the

is

does

heavy machinery, metals, chemi-.
cals, and paper—to mention a few.

other

build

11

mistic now because there
is
a
chance that the political
pendulum

of time is spent dency are more conservative than
politico-economic is Mr. Truman. And a more con¬
the plenary session servative outlook is what we need

a

amount

in

and

than

graduates!

Presi¬

that

realize

to

in discussion of

problems

1951

.

ployment is to be found in

Roger W. Babson

higher than those

the

and

There

today in certain
jobs compared with the boom in

,

in the long run, more secure

number of the

to

United

there

diffi¬

find

industries,

non-technical

insurance, then purchase

may

job bets-for 1952 will be in

defense

than

goods
industries.
The
production jobs today on the in¬

also

portant

im¬

members

mediately behind them.

comes

vBest

;

10%

the

stocks

.

the

What

cult td meet.

Best Job Bets

for

bets

about

to

consumer-

will

year

been

mittee

2, every member of the Truman from
U. N:. is represented by a dela- the race. My
gate. In Committee 2, therefore, more optimisthere *' were
60
delegates sitting' tic feeling

this

What's Ahead?

industries

that

wages

graduates

offered

'

the

non-technical

more

graduate will be in the accounting
and manufacturing fields. Salaries
for, the college senior; in 1952 will

in¬

consumer-goods

a

salaries

Best

the unemployed

dustry,'4s a job in a defense in¬
dustry,^By,;Tate 1952, it may be
difficult indeed for the consumergoodsJ industry to find laid-olf

sta-,

.1, for
one,have been

in

recent

companies reveals
offer beginning engi¬

last with starting salaries ranging
from $300 per month upwards.

fewer

'

.

to

answer

worker

20,000

A

125

will

college

jobs,

contract!

own

of

expect to hire

75,000 fewer textile

and

-

The

.;

tistics.

food

lumber,

engineering
short supply
therefore, almost

very

can,

ranging from $225
to $500. Manufacturing companies

says

later drop.

may

fewer

of

one

every

goods industries,

consumer

is in defense industries,.despite the probability

that defense

Time

analysis

an

in

electrical

in

his

survey

the
scene
in the plenary session of
the General Assembly are dupli¬
of

Many

or

is

and

now

ex¬

pect.

.

(1603

Arutyunian

and

his

colleagues argued that the
paid in Chilean mines were
so
low
that
they constituted a
form of slavery. This propaganda

April 1,1982

Dated April 1, 1952

Due April

1, 1982

wages

attack, for such it

payable April 1 and October 1 in Chicago or in New York City

by our own
subsequent session of Committee

answered
a

Interest

fully
delegate at
was

was,

2.

Oddly

not

enough,

have

hearted

the

the

full

U. S. did

and; whole¬

support in presenting its
case from the Chilean

Price 100% and Accrued Interest

side of the

delegate,

Mr.- Santa

obvious that

I

It

Cruz.
here

cannot

is

relate

the details of the discussion about
the

wages

Chile,
like

but

to

of

copper

the

point

emphasize

miners
we

in

should

is ' that

the

Kremlin studies the operations of
Americans and American corpora¬

Copies of the Prospectus

may

these Debentures in

be obtained from only such of the undersigned as may legally offer

compliance with the securities laws of the respective States,

tions not only within the borders
of the U. S. but all over the world
as

well.
As

sits in Committee 2 day
day, it is clear that it is
the forum selected by the Soviet

MORGAN STANLEY & CO.

one

after
...

Union and its satellites for carry¬

KVHN, LOEB & CO.

THE FIRST BOSTON CORPORATION

ing out the predictions of Lenin
in his
classic volume,. "Imperi-.
alism, the Highest Stage of Capi¬
talism."

In

order

to

is going on here, it is a
prerequisite to have a thorough
knowledge of this work, as well
as

•.

subsequent

-

documents

and

pamphlets, particularily those is¬
sued
by the Communist Party,
U. S.

BLYTH & CO., INC.

HARRIMAN RIPLEY & CO.

GOLDMAN, SACHS & CO.

SMITH, BARNEY & CO.

understand

what

I

GLORE, FORGAN & CO.

A., the latest of which

Incorporated

DREXEL &

CO;

*

LEHMAN BROTHERS

'

EASTMAN, DILLON & CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE

KIDDER, PEABODY & CO.
SALOMON BROS. & HVTZLER

are

'

"Monopoly"

by

the

Labor

Re¬

search
can

Organization, and "Ameri¬
Imperialism" by Victor Perlo,

published in 1951. It is, of course,
Teadily discernible that the propa-

Continued




on

page

30

STONE &
April 16, 1952.

WEBSTER SECURITIES CORPORATION
- ■

.

WHITE, WELD & CO

■

J

12

(1604)

The Commercial and Financial Chronicle

.V.

.
'

1

i

it

Economic and Legal
Factors in Stock Options
L

if

individual

ington

greater stake in the ownership of

^

and

the

top

000

man¬

agement

for

creative
to

paid.

they

are

If

Let

two

New

York

7

earn¬

But in a

recent

survey

executive

f

H.

Arthur

Leaving

pension,2

out

1950.1

and

1939

between

made

taxes

1939

group

health, group insurance and other

contained

in

the

1939

table

and

between

$400,000

a

the

from

result

employees; but that, when adjustment is made for increased

in

decline

and

jr?.

between

as

down

purchas-

compensation

s

and

1939

1951

was

59%; middle management's

down

supervisory

40%;

person¬

nel's down

13%; and only superemployees'
compensation

vised
was

theirs

and

up

the

as

a

only

3%.

In

top

management, for
example, gross compensation in
1939 averaged $43,700 and in 1950
$59,300; but the 1950 compensation

Tn,e

1939

Mew

his

was

jn

should

Section

n0

have

1952)
an

in

in

was

tax of

of

after

adjustment

chasing power was worth only
t!he equivalent of $18,000 in 1939
dollars.

$400,000

30,519

25,867

after

recall

"Alice

the

the

term

of

with

caution.

But

survey

$lso shows under 1951 tax rates
that to give an executive in the
higher brackets an increase in

Red

Through

et

salary, after taxes, requires
increase

ross

ctual

several

benefits

times

the

conferred.

For

Example, to give

an executive, asburning he is a married man livbig in New York with two chil-

the

Looking the

oPn<araiiJ JJ?
little, you
g J
,1 somewhere else
+

een doin£-

ve

"A slow sort of country," said

cjrease

of

a

net beneficial in-

$1,000

rjaising his

would

salary

by

require

approxi-

in the same place. If
want to get somewhere else

you

must

run

least

at

twice

to key positions really able

of

$1,000 would require raising his

dalary by approximately $4,000.
!} The late James Forrestal, Sec-

ijetary of Defense, is said

to have

riemarked that the American

pie

peo-

tremendous debt of
gratitude to Eugene Grace, Chairowe

man

a

ranging

up

to

power

salary

con-

tpbutions to the war effort but
that the debt would probably

figures

4

,

Hever

.

be

11,

acknowledged

.

to what

received
"

<
,

,

,

.of

the

th

M

ance,

or

within

an

exchange

the

to

„

which

reorganization

is

provi¬

sions of Section 112(b), or a mere

may

run

simultaneously;

that is,

if the employee does not exercise
the option untiL a year
and a

Section

130A

Revenue

Code

the

of

the

Internal

released

were

by

Treasury Department on Oct.
1951
but final Regulations
not

yet

Unfortunate

of

value,"
which

the

the
can

been

the

promulgated.

proposed

"fair

term

Regu¬

market

determination

present quite

lem where the stock

a

of

prob¬

which

on

an

option is granted is not being
tively

traded

so

to

as

ac¬

have

a

by the estate of the

employee.

tions do

not

The

Regula¬

offer any clue as to

the tax consequences in such case

an^

whether

the

estate

gets 1

*

a

stepped-up value for the option.
The

and

Defense

General

Regulation
such
tion

law

Production

Salary
No.

Act

which

President

the

The

4:

is the

Act

Stabilization
second

Defense
confers

Produc¬

the

upon

to

stabilize

wages,

salaries and other

compen¬

sation

as

concomitant

a

stabilization.
fines

the

power

Section

words

of

price

702(e)

de¬

salaries

"wages,

and

other compensation" as in¬
cluding "all forms of remunera¬
tion to employees by their em¬
ployers for personal services in¬

cluding, but not limited to
centive

or

payments,

welfare

tributions

to

a

employer

pension

annuity, payments
premium
The sole

or

con¬

fund

or

in kinds, 'and

overtime

payments."

^ct

question under this

Continued

quoted market price at the time of

in¬

.

insurance

of

benefits,

.

contributions

employer

payments

.

year-end

on

37

page

This advertisement is neither

offer to sell

an

nor

d solicitation of offers to buy any of these securifUu

The offering is made only by

the Prospectus.

;

•

4

April 16.1952

ISSUE

NEW

value

the

date

op¬

if

and

as

long-

800,000 Shares

;;

-■—*

'

i

t

Southern California Edison

Company

B

.

Common Stock

ordinary

($25

value)

par

death

or

and

—

deduction

respect

of

a

at

Price $34 per share

any

restricted

are

separate condi¬

seven

5

new

iitl

.

rf

'
:

section.

■>

»

if

MiV'-i

■

I'ti*/-

■

of

the

option

is

stock

on

the

Copies of the Prospectus may be obtained from any of the several

date

granted.., The

underwriters, including the undersigned, only in States in which

term

Such

underwriters

and

"fair market value" is not defined.

in

which

are

qualified to act

such'Prospectus

may

as

dealers in securities

legally be distributed.

The Revenue Act of 1951 provides
that the date of granting a re¬

stricted

stock

subject
shall

unusual

„

as

qualify under the

the

pur-

produce

any gain
disposition of the

whicji must be met in order

value"

were

net

to

be

option

stockholder

determined

not

subject

as

to

which

is

.

J",

approval
such

s

It.r.:

though it

rifr.'t

'•

•

ap¬

The First Boston

proval.

Corporation

Harris, Hall & Company
..(Incorporated).

Second, the option by its terms
prohibit transfer other than

•

■

7

must

by will

,

or

by laws of descent and

distribution.

paid.

■

,

<

> <

*

;

.

Third, the' option by- its
must

Company,

Dean.

inherit¬

or

of the option

deceased

First, the option price must be
at least 85% of the "fair market

pay at all comparable
top executives commonly
prior to World War II,

t"




bequest

the
special tax * treatment
provided by Section 130A will not
he applicable upon the exercise

option.

to

dollar,

a*d'ess,hy Mr: Dean ber_
2 See Harvard Business Review, July
ftr? Xhe National Conference of Electric & Sept. 1950, "Accounting for the Cost
iv April f y,wC°Un
Anra
8' NCW Y°rk Arthur
°J Prions-* Lien on Production" by
fSty,
8, 1952.
H.
fl

by

or

his

to

indi¬

that

.

"
'
"
1 See Harvard Business Review, March.

estate

decedent

a

the

defined

as

market

taxed

tax

no

in

There

pros-

April 1952, p. 141, editorial referring- to
Ifcecentlv at -the hearings in WncVi isuryey made by
pattoft of the manT
dl Uie IiearmSS m wasn- agement consulting firm of McKinsev &
or

from

to

is granted and

granted,

disposition

tions

combined

would require somewhat

of the Bethlehem Steel Cor-;
take-home

poration, for his remarkable

90%,

is
be

stock

men

with the shrinkage in the
chasing

transfer

"re¬

a

gain, presently tax¬

time

perity-of the corporation and incidentally the production of the
nation. Because income tax rates

increase

months.

includes

it

The granting corporation is en¬

and to induce them to give their
best efforts to advance the

beneficial

six

restricted' stock

a

-

personal

and

the

on

the

on

will

titled to

as

Bracket

net

for

"disposition"

exchange,
gift
or 'any
of legal''title except a

sale,

that

is

vidual to whom

transfer

a

indicate

option

additional gain will be taxed
capital gain.

as

to keep
y°u

mately $3,600; ^nd in the $75,000
a

itself

term

for Federal estate tax purposes.
The
proposed Regulations do

any

ing sufficient incentive to attract

beneficial increase of $1,000 would

stock

of the

option

such

Queen, "Now here you see, it
takes all the running you can do

(j00 bracket

net

stock

It is my

(1) market value at the
time the option was granted, or
(2) market value at the time of

^aa^/orfa lon2

Require raising his salary by approximately $2,500; in the $60,-

a

the
The

option price

understanding, however, that the
Bureau intends to apply substan¬
tially the same tests as are used

lesser of

™

..

is

Seventh, he must not dispose of

income to the extent of the spread
between the option price and the

fast as that."
In the face of facts such as
these, corporations have been
faced with the problem of provid-

dren, in the $45,000 bracket

option

of

the

deferred
until
employee dis¬

the

as

capital

stock

a

option"

granted,

realized

vn,,

the

/

-

80,150
If the option price is less than
experi¬ 95% but at least 85% of the mar¬
Queen
in ket value of the stock on the date

all

the

after

years

granted; and

Alice's

generalizations the figures must be used
case

two

relation

by the

of

case

the stock will be treated

Glass":

in

not

dispose of the stock in less than

157,000

will
with

ence

must

the

to

able at the maximum rate of 26%.

Taxes

You

Internal

Under

1950.

the

the

95%

is

54

ippro^Se-Homr^y

optionee

certain
other conditions are met, all gain
so
realized on the disposition of

293,928

JJ. v. state Tax

Internal

added

as

section,

the stock

tion

$400,000

212,500

Federal Tax.__

in-

for

lncome

oppose

the

of

of

in

of

within
of

net

rncome'in"l939.
Gross

the

In

extremely

actually
realizes gain from the transaction.
Further, if the option price is

addition

1%

or

the

of

130A

time

poses

reduction in 1951, which
will continue to

there

t

Sixth,

guide

real

favor

stock

that

such

assumed

and

and

aspects,

any

130A

Section

stricted

in

the

emergency

that

new
Code Section 130A, the im¬
position of income tax to the em¬

of
net

tax

fact

Revenue Code: The first such law

ployee is,

State

ration.

them.

earlier year there
specjai reduction (such as

the 10%
I

York

the

do

option and whether stock¬

holders

larger than in 1952> be.

was

cause

creased taxes and diminished pur¬

As

These,

that

to the why and wherefore of a

stock

In

1952

of

case

amount.

would increase
take-home pay.

taxes

take-home pay,

management

tle.;

real

the

power of net

unknown

employer corporation or of its
parent or any subsidiary corpo¬

option.

be

may

and "fair market value."

to

ably have additional deductions of
course,

the

as

bonuses,

Code,

an

of

cation

Act

management;
about
supervisory personnel;
106% for supervised

voting
stock

lations do not contain any clarifi¬

provides

Revenue

for

importance.

stabilization

neither

Revenue

about

of

have

of a large * standard deduction.
Any taxroll); about 45%,/payer in this bracket would prob-

middle

classes

the

of

it

case

18,

company's

and

combined

all

half

problems

is

83%

na¬

typical problems aris¬

paid one-tenth of 1 %
for

the

understand

practical

of

salary

in the

$300,000 net taxable income.

total

of

granting

difficult to prove whether the op¬
tion meets the 85% or 95% test

pects and the second only with the

tax

Service with interpolation

op¬

the

power

the
such

tions only indirectly. That is, the
first deals only with the tax as¬

benefits, it showed that average determining net taxable income
gross dollar compensation was up for Federal tax
purposes, there
about 35%
for top management has been deducted the New York
(which is defined as the highest State tax rather than the $1,000
pay

Thursday, April 17, 1952

.

these two laws relate to stock op¬

as they are based on
table of effective rates for that

year

is

stock

most

arise

with

compared

as

Fifth, the optionee and his fam¬
ily must not own more than 10%
of

pledge of the stock. The two-year
period and the six-months period

under

Many

take-home

and

employees' stock

order to

the

gross

proximate,

was

comparison

man

The figures for 1939 are ap¬

1952.

a

generalized

his

in

pay

Dean

compensation,
a

The

$400,000.
shows

a

attention

our

within three months

or

employment terminates.

after it is granted and does
option plans, it
is necessary to review briefly the; not sell the stock itself until six
after the exercise, both
two laws which, next to the gen¬ months
eral corporation laws of the state requirements will have been met.
Proposed Regulations under
of incorporation, are currently of

ing

residing in
salary of
tabulation below

has

to

ture of the

,

married

a

they help to bring

plans.

In

children

with

energy

ings.

assume

us

for

come

o

be

such growth and im¬
thus

The Laws Affecting Stock Options

very

.

brains

from

been

by taxes, Philip Mur¬
head of the CIO remarked
sardonically that no one was go¬
ing to weep for a man with an
income of $400,000. •
f

stockholders

worried,

tion

ray,

not,

should

directed

stated that
sharply

companies
had

sum

manage

investors

afforded

as

And

about.

decreased

really

well

steel

this

ideas

be

and

provement

salary and counsel for one of

the

re¬

sponsible

treatment

in respect of

But if I wages to be paid to hourly workstockholder in the ers by the steel companies, when
American free enterprise system one of the representatives of the
CIO mentioned Mr. Grace's $400,I would want

they

by making available to them
favorable capital gain

more

tax

large

a

which

the

entrepreneur are passing.
were

business

the

what were appropriate

on

employee
after his

forded by giving key personnel a

salary increases and fringe benefits.
the

means

inducement, especially if it means
giving up pension rights.
Such
incentive
might be af¬

stock option. Gives details of various stock options, and
concludes though restricted stock options, to a limited degree,
C have been decontrolled, they still present a problem in human
relations. Holds stock options are not as inflationary as cash

to

it

small incentive especially

a

risks, giving up ac¬
rights, or a change
from one city to another. A large
gross increase provides small net

a

rewards

junior executives away
competitors find increased

from

affecting such plans, along with problems of val¬

The

attract

to

attorney,

^

by ordinary salary

crued pension

scribes laws

uing

afforded

salary

for increase

V

to find

necessary

payments. Corporations who wish

after discussing economic background
in executive and employee stock option plans, de¬

York

New

become

form of incentive other than

that

Cromwell, Attorneys, New York City

Partner, Sullivan &

'

has

some

By ARTHUR H. DEAN*

.4

.

.

»

be

terms

exercisable

during the
employee's lifetime only by him.
Fourth,

ercise the

the

optionee

Dean Witter & Co.

must

option while he is

BIyth & Co., Inc*

,v

ex¬

"

4

\ William R. Staats & Co.
i>

p.';:.',tam

«»•

7-"v-2

'

1

an
i

.«

t

i

-

T

■

.3.
v

Volume

175

Number 5103

.

.

The Commercial and Financial Chronicle

.

(1605)

Peace and Profits Through Point IV
By DR. MAX WINKLER*

Partner, Bernard, Winkler

,

m
'

!

Dr.

Winkler, pointing
^ foreign trade is not of
;

out

;:

a

tion to hindrances such

*

Despite,

what'is

or

perhaps which

correct, because of the continued international
tension, U. S.

last yearreachedthe

impressive
close

of

alent * to

th

to

commenced

be

recorded

systematically and methodically: I
am

that most of you are fa¬

sure

j

\.

.

>

-

many

in

responsible

and

in their desire to aid the so-

called Free World.

"Mitte

panem

These latter-

tuum

tran-

super

.seuntes aquas
Quia post temporamulta invenies
y

day democrats do not deserve the
attention, the respect or the con]
ilium,"
aid rendered her, materially and fidence which we are placing in'
spiritually?
The index of indus- them.
I wonder how many Amer¬ This I believe should be rendered
trial production during the
thus: Export your goods overseas,
:
*
"
period icans realize this?
in question has advanced from 53
because in
time it is bound to
.

123; imports have risen from
178

have

exports

hour

to

43

of

average

drachmas

billion.

advanced

day
ughout

These

pressive,
On

if

while

from

close

figures

viewed

a

billion

billions;

monthly average of 17 billion

24-

u r

ro

•.

.

.

monthly

three

every

h q

high

candidates for American

are

/

,

.

pity that too

a

What has Greece to show for the

to

al¬

for each

is

'Americans

million dollars
of

aid.

only through

come

can

tory

.

....

recognized

added,

a

to 38

im¬

are

superficially.

analysis,

however,

selves,

because

portion to Seven and also to Eight,
for thou knowest not what evil

are

of

a

seas

trade,

days and holidays.
Had

change

has which

lost

unofficial

dollars,

than one-third,

loss

being

much

paying too high
at

can

best

in

and

carried

order

a

prove

transitory character?

be

of

not

we

price for what

concrete

more

re¬

But

ex¬

terms

The

you.

mainder

one

in

international

profitable to

prove

tension has created in many lines
high level of business activity.

finds that the value of Greek

officially

the

them¬

a

the, year, in¬
cluding
Sun¬

the

deluding

are

Over¬

to

achieve

lasting results, must
an

atmosphere

devoid

is

in

of

terror

on

anxiety, which is subject to
restrictions

and

as

few

of

the

verse

di¬

urges

versification when it says: "Give a

shall be upon the earth."

words,
merce

engage

with

as

In other

foreign

in

many

com¬

you

as

taken

Winkler

of

this

If

is

account

factor

and

adjust¬

substantial

very

portion

of

and aid to Greece in par-

ticular, point to

the

the

the

in
the* spiritual
foreign trade—and this field: Greece has been saved
from
is
equally true of world trade in the clutches of Communism.
Segeneral—is not altogether of a rious

America

s

students

genuinely healthy nature. Supplying our friends
and
allies with
tanks and

with

guns,

bombs and

planes, may temporarily create a
high level of business activity at

home, but it does not,
create

any

project
abroad.

of

can

it,

a

Furthermore, should this

situation
some

nor

revenue-producing
lasting
character

change,

should ifor

i.e.,

reason, American generosity

undergo

a

marked

or

ward,

should

gether,

the

revision

it

down-

cease

alto-

will

have

recipient

nothing to show for what he had
received, while the donor, that is,
the United States, would be that
much poorei.

for

and for some

the

time

time to

being,

those

come,

w^?..ar<f parsed with guiding the
political destinies of nations
are

istmg

West,

about

resolving the

schism
for

between

fear

lest

East

such

render unnecessary the

ex-

and

steps

enormous

military expenditure which, if discontinued, or drastically reduced,
would
crisis

To

precipitate
of most

cite

but

Germans in

an

serious

ample: Since

international

economic

fr0m the Communists, and

that

pears

she

American
done

it}

tween
as

the

the

it

which

Stalin

which

of

ap-

r0w

and

a

probably accounts for
recently coined definition of a

black

market

who' makes

private

and

available.

Greek
In

The

excess of

man,

satellite

arms

to Greece

government hasn't

relief,

is

$240 for
and

woman

passing, it might be said

ward nations
for Greece.

at

If

least

back-

much

as

same

as

we

amount

were
on

and

to

seem

What the exporter is up against,

be
is

stability

fact

in

the

world's

leading

exchanges, trade and economic

perhaps best illustrated by the

of.
and

in

all probability
thanks to the

being,
exchange
imposed by governments,
may perhaps be best illustrated by
a hypothetical
example:
made,

lion dollars.

And there

are

controls

Let

us

many

*A*a*dre** *>y P?\wgklerb*f,or*.*he
Manners Club, New York

April lS, 1952. ;

City,

\„.f




•

assume

Asuncion

importer

because

contacts

proper

an

could,

and

connections,

obtain a license to pay for im¬
ported goods at the so-called of¬

ficial preferential rate of 3.12 gua-»
ranis to the dollar.

Let.

further

us

that said importer's friend
in New York is able to purchase

assume

make

our

own

Five

however,

the

of

that

dealings

with

the

ten

Prior to March, 1951, Paraguay
of three other exchange

boasted

rates:
ranis

The basic rate of 4.98 gua¬
the dollar; the preferen¬

to

tial rate "A" of

erential
dollar.

rate

6.08; and the pref¬

"B"

of

8.05

Republic

established

new

a

with two rates covering most tran¬
sactions.

applies

The 6 to the dollar rate,

imports

to

Continued

New Issue

of

essential

on

page

April 15,1952,

1,250,000, Shares.,

,

Tennessee
Common Stock
(Par Value #5 per Share)

at any rate

Price

to

not

was

This,

appointed
international
experts,
political analysts, and soothsayers
kinds an(f descriptions, be-

*

reveaf

and

secret

•

f»<

1

*

Copies of the Prospectus may be obtained from any of the under«
1signed who are qualified to act as dealers in the respective States.
■

of

gan

$12 per Share

Self-

be.

confi-

dential information available only

them, that

Russian invasion

a

Yugoslavia

imminent,

was

Rumanian

and

Bui-

Stone & Webster Securities

White, Weld & Co.

Corporation

think of reducing

our

aid?

BIyth & Co., Inc.

Eastman, Dillon 8C Co.

Glore, Forgan & Co.

The First Boston Corporation

)

Goldman, Sachs 8C Co.

P«eudo-Fxnt>rt<?

Harriman Ripley & Co.
Incorporated

.

.

-Pseudo experts
Where do these experts obtain
exclusive information?

this

Curtain. - Can it be assumed that
these individuals place the safety
the

welfare

the

of

Lehman Brothers

-

.

■.

Merrill Lynch, Pierce, Fenner 8C Beane

The

country is full of professional expatriates and exiles, voluntary and
otherwise, from behind the Iron

and

Kidder, Peahody & Co.

Smith, Barney 8C Co.
Drexel & Co.

^

,

Union Securities Corporation

Hornblower & Weeks

W. E. Hutton & Co.

7

United

W. C.

Paine, Webber, Jackson 8C Curtis

Langley 8C Co.

"v

joyed.
rpcall

if

Few,
their

any

among

ardor ; tointroduce

democracy, literacy and
.

-

.

.

,

standard
own

people, at

.1

were

...

.

*

of .living
a

a

.

their

time when they
•

in

a

position to do

so.

Incorporated

,

.

Central
.

'•»•>/

•

,

Republic Company
(Incorporated)

Hemphill, Noyes, Graham, Parsons 3i Co.

-

„

;

.

Clark, Dodge & Co.

'

.

r

<

\

Lee Higginson Corporation

decent
..

among

A. G. Becker & Co..

us,

Why

Shields &

Company

rate

guarani at 6 to the dollar,

an offer to sell nor a solicitation
of an offer to buy any of these securities. The offering
only by the Prospectus. This is published on behalf of only such of the undersigned
as are
registered dealers in securities in the respective States.

is made

the

to

In March of last year, the

Russian

world.

Per¬

centers blush with shame.

This advertisement is neither

Cueing aid and grants at least to
part

in

of. his

three

other countries besides these three
;
*
Export

are

greatly lessened, there was danger
that cries might be raised for rethat

the

yet thought
How large profits have been,

South American Republics is car¬

supplies through

or

man

as

no

to expend

only

the United States taxpayer would
be close to one-quarter of a tril-

c

not

fully realized today, that without

were

States above the welfare of their
native land? Their aim is doubtFar
Eastern
countries
(China, less to regain the power, prestige
India and Indonesia), the cost to and
fortune they formerly enthe

A

ways

re-

total

doing for the rest of the

in

Yugoslavia

and

removed,

Hungarian,

that the Administration is desirous
of

operator:

money

Yugoslavia.

the

from

scruples

should the people hesitate to de¬
fraud the government?
This line
of reasoning

be-

Tito,

They could

Russian

of

of

1944, Greece has

considerably in
every
child.

does

Difficulties of Exporters

unfortu¬

as

have

iorger depend on their northern
nejghbor for asylum, nor could
they depend upon the continuous

ex-

concrete

one

Doctrine

not

'then,*

not

out

communists

force(j to fold up.

$536,600,000. and military aid up
to July,
1951, $559,400,000.
Figures for the
period since last July
are

realized

Moscow's stooge

as

Greek

it

was

falling

comrades

refU£e(f to act
and

has,

billions

but

resuit

a

proportions.

liberation

no

defrauding the people, why

affairs will incline to dispute this
ciaim.
If Greece has been saved

garian divisions, led by Russian
ceived U. S.
aid amounting to generals,
were
ready to march
close to
$2
billion, as follows: against Tito.
How
could
we,
Marshall Plan,
$826,700,000; Tru- under these circumstances, even
man

was

With the threat of Communism

However,

hesitant

of

has

government

about

in

phenomenal nately >Jt

achievements

Few,

can

•

A

country.

a

is

forty

guaranis at the black market rate
profitably contact, so as to protect ■; of 33
to the dollar:
In this way,
yourself against possible setbacks
the combine may
be reaping a
at home.
In this connection, it
gross profit of about 950%!
This
may be of interest to recall David

i

peruana recipient.

of

any,
have any compunction
about entering the so-called black
market.
They argue that since

^nndelc0ipientg' t0 ^ ^

Max

rate

total

a

the

If

market

if

for the

Dr.

accepted.

get
rates, or four to

should

substantial.

more

and

and

black

we

possible, and where
money of countries engaged Hume, Scottish economist-philoso¬
buying and selling, enjoys a pher, who argued, in substance:
tranquillity in
ments made accordingly, it will be
Whenever the wealth of a nation
certain degree of stability.
One
world, it
found that the Industrial Index
of the factors which played a very increases faster than that of its
^ * jU.
?
w^e^her the total has advanced only about 50%, that prominent role in world recovery neighbors, the profits of home
would have been so large.
Howimports are about 2 3A times after the first World War, was the industries trend downward.
The
evetf,- one thing is certain: the
higher and monthly exports only
only way effectively to arrest the
successful
effort
to
stabilize
yqlqme of trade, whatever its size,
about one and one-half times the
downward trend is the export of
might have been more construeworld currencies and devise means
1945 figure,
domestic capital.
tive in character and far more
to maintain currency stability.
It
there been

peace

as

thirty different
a 11
officially

rates,

so-called

•

to $26 billion.
This is equiv¬
most

It

cere

more

total

atmosphere.

a peace

Their return

in at least

on

"Sf exchange

*

"Cast thy bread upon the waters,
for thou ' / "
*
'■ '
positions, Shall find it
after many days."
both in the government and out,
The Latin version reads as fol¬
pay close attention to them, in the
mistaken belief that they are sin-; lows:
•

only feasible in

power

conflagration.,

/

®es 5 activity, and contends "without stability in world's leading
:Ji; M exchanges, trade and economic well-being cannot be success•u*f ully promoted." Concludes
implementation of Point IV is
t

t

promoted' ried

reading of
and everything to gain by advo¬ the
King James version of the
cating, overtly and covertly, a new text would indicate:
'

-

'

|lf

be

cannot

ernments, and this can come only; miliar with Chapter
XI, Verse 1
through another World War. of Ecclesiastes) which is far more
Hence, they have nothing to lose important that offhand

genuinely healthy nature, calls attenas
exchange and import restrictions.
;)Says Americans are deluding themselves because the interna7 ri:;> tional tension has created in many lines a high level of busii-'i

being

-

successfully.

the overthrow of their home gov¬

substantial portion of America's

a

well

protected only so long as their
The significance of
foreign trade
fellow-citizens remained in pov-. was appreciated even
before his¬

to

Members, New York Stock Exchange

.7

They did not do so,
solely because their own position

was

erty and ignorance.

Co.

&

didn't they?

13

Dean Witter 8C Co.

28

Chronicle

The Commercial and Financial
14

(1C0G)

*

in its refunding operations and
its

Short-Term Money Rates
And the Mortgage Market

the

By MARCUS NADLER*

governed by different influences, ;
points out each has an important bearing on the other, espe¬
cially in times of uncertainty. Sees economic instability as
prime problem confronting both money and mortgage markets.
Holds expanded savings, heavy taxes and buyers' resistance

market.

obtained

an

the

1stter.

leadfto a'°curtadment

The

money

struction and the supply of mort-

°te"^problem for'

P?fma rUy "Tshoukl
short-

with
f

term

fore

s

there-

is

and

d

u n

highly

sensitive

to

rather

™is case the

-

there

and

spill

only seldom do they
the capital market,

to

over

for

The capital market, on the other

to

hand, reacts somewhat slower to

the capital and
at

business

,;

fluenced

primarily

by

inliquidity

larly the

of the

actions

Reserve

authorities do, however,
important
important

hpnrinf*

market

gage

earlv in
eafiy in

as

1Q51
ivoi.

on

Marpb
March

nn

wnen

an

mnrt
mort-

witnessed

was

Whnn

have

thp
tne

on

bearing

on

d
4

but

.

market

important

.

,

1!;

lcet

policy

a

and

the

open mar-

initiative

securities

vested in

«nd

m

again

the Federal Open

ket Committee the result

jlar-

was

to

automatically reduce the liouiditv
automatically reduce the liquidity

of long-term bonds
their
monetization
difficult
for

than

many

had

and
been

This

years.

to

much

make
more

the

case

automati-

cally had

a direct bearing on the
mortgage market since it reduced
the .potential
supply
of funds

available

the

for

mortgage loans at
of Institutional in-

disposal

vestors such

nies,

as

savings

insurance

banks

compa-

and

i

tend

The

to

eS

ward the

of

always

the wa/fn

authorities

serve-

nndomo

deavor

through

availability

crete

proof of the manner in
which the, policies of the Reserve
authorities dealing primarily with
the
money
market have influenced the

Not

mortgage market.

onlv

the

do
^

^

»

thorities exercise
thf>
tne

mortenep

anantitativp

H

-

an

influence

markpt

mortgage

hut

market

but

on
tho

the

qualitative credit controls applied
hv
q1c«
hoxra
by than also have a bearing on
them
a

thp
tne

mnrteaee
mortgage

^

market

marKet.

Thrnuoh

inrough
Regulation X the Board of Governors

nf

the

System is in

Federal

influence

and

activity
0ne

such

conditions

Regulation X

as

in

the -FHA

policy

Naturallv

of

the

modification

exnect

mav

—

increasing

Under

well

as

of

change

a

and

VA

these develonments will

.

.

.

.

JStfiZ

country which holds that the
construction dur-

JSi®1

waf?ps

oyer

bp

mav

T

j

^

t

there

that

pvidpnce

to

the

tnrpt?

_nH

th

makp

no

expendi-

total

lt

absorb

.

fight against

in its

evl?er}c® tnai tne vongress^wiu
materially reduce

lltlnprp,

any

enforcement body that plays favorites

administration, since

one

we

will be able to get

forrlq a^^^^^^
SLJT
and the

f.mount,Lof S?.ve,rnmfn.t. obUga-Administrative bodies that embrace in one the mulDimy

tiple functions of investigator^ complainant,

are^eftaitelvtaaalona^vin Am!
? aetiniteiy intiationary in cnar-

system

one must not
tkat the produciive capaclty °I the country has

our

and

we

therefore continue, without

must

sh,orta!?es have not
materialized, that there is a very
that

resistance,

sumitlg n0 foreseen events,-it-fe

reasonable to conclude that the
increased productive capacity of

Administration.
prove

to be the

If

such

Alfred E. Oldaber Is

Patterson Elected

Now With Kobbe A Co.

,

£:
N

By Chemical Bank

Kobbe

come

vg

Regulation

X

modified

is

onlv

if

again

it

or

be-

epediea ana oniy it it again nepossible

comes
u

buy

for

veterans

u^osslDie. X0rx veierans
homes

payment

without

any

next

Vear

J.fv

a

modification

field

+hP

as

well

cnntrnls

NEW
ond

Club

at all can one exnect
f ■^ <iuailtatlve ^controls, particu
ai ai1 can one exnect a larly as regards Regulations X
a

D. C. Patterson,

Jr.

activity6 This'Therefore and W' Under l.heSe circumstances

of the

policies of the Reserve

au-

Jha f°"fy marketthe mortgage thorities and of the FHA and VA.
also has an
indirect influence
The
.

on

because

the

position

supply

of

will

not

mortgages at least in part depends
on the willingness of the commer-

icies

of

cial banks to extend construction

bearing

address by Dr

N

di

but will

onlv

the
also
on

of

the

Treasury

influence

Reserve
have

an

the

authorities

important

the mortgage market

Notwithstanding the present,open

Conference^ ma^et policy the Reserve

feofore the Mortgage Bankers
New York City, April 14, 1952.




ool-

au-

un-

doubtedly have an effect on the
mnrtffatm market

SBu/,.,

w

,,

With White, Weld
(special to thb financial

chronicle)

.

NEW HAVEN, Conn.—Vincent
P. DePillo has joined the staff of

thorities must assist the Treasury White, Weld & Co., 74 Elm Street,

YORK,

annual

N. Y.—The sec¬
meeting of

dinner

Century
April 16 in the
Jansen
Suite
of
the
Waldorf
Astoria.
In attendance were 42
the

as in

nartirn-

t^FHA^nTvA
toward Zrteaae loans
Ah ea^
in^of thTmonev market will

Century

Club Dinner Meeting

the

poUcies rf

&

,with the firm. Mr.

formerly with-Green¬
Co. Inc. in the trading

was

Atlantic Quarter

ex-

"loaiucation m tne

nualitative

Incorpo¬

department.

Quantitative credit controls of the

to
£uanwaxivt; cre.^.lx
to Reserve authorities

down

in

Company,

associated

Oldaker

should

case one may

&

rated, 55 Liberty Street, announce
that Alfred E. Oldaker has be¬

honies Onlv
*
lu pdrilcUiari^, l0Wa\a ^e ena
r? aimcuu to Duy nomes. uniy 0f the year or the early part of

repealed and

of all of these

functions in the interest of our freedom.

antici?a,t.ed

buyers

liberties

abatement, to wage a battle for a separation

bef.n. ln«eas®d materially, that

strong

prosecutor,

Anglo-Saxon
of jurisprudence. These bodies constantly impair

judge and jury are a constant^ threat to our

oi

mor* difficult to buv

if

do not carefully

addUional0' substantia", justice, now.

nn

stiffer attitude

we

guard our liberties daily to the end that everyone gets

npnt
tent forces than the inflationary '
L f
dangers emanating from the acdemand for housing has to a_Ditoe tions of the Congress and of the

fx/^
lation X

feel strongly that one day

justice if

if

other

Equality

Everyone is entitled to justice and we shall continue

\

prices and
'More•
" *
,
is no concrete
Coneress will

™PWeri

i.u

litigants is of no consequence.
significance.

before the law is of every

bv

pnmanly the country, the heavy taxation
whiS
lannnJ I I ®upp^es: burden and the buyers' resistance
fc i
££
be denied that win prove themselves more po-

a

an

business of the

will

artinn«?

f

Recede

gage rates.

of

undoubtedly

hv

taxes at present rates are a very
potent anti-inflationary force. As-

mortgage market

position to influ- building
materially the volume of clearly indicates the
important
mortgage loans and hence mort- influence on the
mortgage market

"^Summary

which

fn] owPfl

M

enee

market

union
h_

Lserve credit to aeteV However
stimu^te business overlook t1?6 fac'

of

ill-advised interventions of

pith of the true administration of justice is that
regard it from a completely impersonal point of
The names, the occupations or the nature . of the

view.

to

,„jii

many

must

we

unneces

most

bound

are

^

how

The

The

workers'

steel

de-

undergoTchange. They""wiil"en-

In til

con-

Qf

\

Re-

any

way.

Ithis kind are also behind the eager beaver attitude of the

Stos'SsSS

rates

was

„By the

°thei unions, gives rise to the fear

1

have

sensitive

very

and

the

mandg

unem-

u

authorities

been

tJJ

This

tne b-BA, in tne iaee oi tne aecision oi uuage Augustus n.
Hand is incomprehensible.
/

n

m the economy at present.

commodity

decline

Amazing!

thp< SEC in the face of the decision of Judee Augustus N'

eixccis. that the soiral between

bumc

and

in

to
•+•

The supply
seeking an outlet in
mortgages was thus reduced and

funds

increased.

what is the concommitant?

a sense of proper terminal facilities would have effected, and can still effect, substantial savings of the taxpayers' monies by the Commission. - The persistence of

ThT are conflicting movements

effects

some

'

.

savings

and loan associations.

qf

compelled to

membership assessments
partnership in that anger.

.

The Prime Prphlem confronting

wav

wlsta?en°nfromrholdIrsbofa^- fSuJ®fSh°fd
ernment

enforced

whe&er the sellers' market will ' Commission in attempting to tax brokers and dealers una\\T*
tn
hnvpra'
market'
A
"R4119
gLve way to
?.uyers market. der the Independent Offices Appropriation Bill?

the margin

increases;

pioyment sets
nrices

mar

psychological

V

;
serve

nnnn

economic

profit is reduced

ties adonted
ties adopted

f'levihlp
xiexibie

...

^nd wIgeset^abeerenewed1Cor

uaf°reseen eve"!s

both

Competition

of last year the Reserve authoria

has

Jv,!7.:.
i

..

likelywhether the economic -stability
market in which has prevailed during the
^ past Tew months will continue br

^adually the sellers market
^ coming to sellers' to a buyers'
tion from a an end. The transi-

of

.

y

•

The monev market and narticu
me money market and particu-

a

tmnclSi^ha?^^v"action of the Wage .Stabilization
grad^^
in connectlon with; the de-

are

pfeference.

with

? S g

stockoitin^

happens, when investors

an

versal by the United States Court of Appeals came

also

are

affect the mortgage

Unless sofe

Zrkets'

mortgage

using public monies in pursuit of

,

tUteS are Speeded Up beyona Wliat
times, particularly in pes
Invisage^^
riods of great uncertainty, placed
in the money market. This
usually^3
ti»nne

at

*»*•£.

are

And

^p„^e
highdr

Conclusion

the general out-

general.

SSST

-

,

.

we

an8er' and sums in its
the latter would not be
additional

result of

as a

be

^

,

iness activity and
look

1

obligations

**

rapidly to the.
policies of the larly the policies of the Reserve
monetary au-; authorities
will
be
determined
fhorities. The funds employed in
primarily by business activity and
the money market tend to remain the
position of the Treasury. BusMarcus Nadler

law."

The re¬
down
VA and naturally the activities
on
had been paid for marry
April 7, 1952.
Almost immediately following this,
the latter have an important bear- ;J*™
circuml Louis Loss, Associate General Counsel for the SEC, filed
°"
stances mortgages may become a petition in the United States Court of Appeals asking a
The Outlook
jof a ruling by Federal Judge Emerich B. Freed
The money market and particuin Cleveland, which put a stop to the SEC investigation;

eehCa0nge0smand ^
reacts

Way

an

the former would stop

*£

^

this

,• ?

hoped that the very objectivity of our
position would appeal to the SEC and to the NASD and
that these bodies would see the error of their ways; that

T^ury Private
include

the

aad

be further noted that
the policies of the Reserve authorities are in part coordinated
with those of the FHA and the

,* ;

:

All the time

eon-bating the raising of $10 billion

of

V

t

-"The SEC and NASD would have done well to react

common

leefsli

ted wU a

■

,

they embarked upon a one-sided punitive
expedition against Otis & Co., via hearings bereft of the
basic right of cross-examination, and attempted through
this medium to invade and penetrate the -sacred right of
secrecy to which confidential communications between
attorney and client have been entitled since the early

,

infr^ted

'.

("Instead

money

»g£

Thursday, April 17, 1952

.

8

similarly.

through
the
short-term
A modification
of the

Series E bonds could lead to
.

.

t

decision there.

increase in the sale of such oblimarket and loans. When money is tight, when gati0ns to ultimate investors and
the
mortgage market are gov- accessibility
to
Reserve Bank
^at extent reduce the amounts
erned
by
different factors the credit is risky and particularly required from the money market,
former exercises at times a con- when the volume of loans in the
Jf
,,
th
h
d
th
Trpas_
siderable in- aggregate is large, banks may beis
with a
fluenceon the come less willing to extend con- «*.
the

While

.

t

opportunity will be afforded under
safeguards to submit all evidence. We leave the

proper

by the Treasury in the open mar¬
ket will be between $3
andw $4
billion
which
could
easily
be
raised

page

courts wherein

of1

amount

total

cash that may have to. be,

forces against inflation.

will be potent

the

cumstances

mortgage interest rates are

!

from

♦

•

The American
our

1952-53 of about
the problem of the

year

Treasury financing will not be a
difficult one.
Under these cir¬

long-term

Nadler, though stating short-term money and

Dr.

fiscal

billion,

$7

York University

Professor of Finance, New

in Continued
*'

raising of new funds. If .the
Gongress should reduce total ex- penditures by . about $7 billion *
with a resultant legislative deficit
of the Federal Government during i

*

Atlantic
was

Quarter

held

active and retired members

of the

Donald c- Patterson, recently Club which is comprised of emManager of the Municipal Bond p,oyees and former employees
Trading Department of Halsey, who have served with the At-

StUarAi^tInviche Presidett
Assistant Vice-President

of

lan"C Companies for 25 years or

or more.
Chemical Bank & Trust Company,
Speakers were; J. A. Bogardus,

an

« was annoimced by
Jackson, Chairman.
Mr. Patterson will

N. Baxter chairman of the Board of the
Atlantic Mutual and

the Cen-

a tennial Insurance Company, and.

responsibilities^ as he^uf ,^nic- Miles F. York, Executive Vice!Pal Division of Chem
President. Jesse N.Levme acted
Department on April 21, 1952.

as Master oi Ceremonies,

Number 5108

Volume 175

.

.

The Commercial and Financial Chronicle

.

that appears

boom

Boston

vineed that

"enforce

inflation
finds

continuing

Washington

cry

the

see

ex-

sult

panding

wages.

more,

and

lie is

new

a

of

round
wage
es

increas¬

guarantee¬

inflation

ing

dissolv¬

and

it

that

busi¬

taxed

H.

D.

To

Bellemore

a

us

like

more

the politicians to

such

forces

seems

lagcalulated ef¬

a

minimize

to

the part of

talk up

ging inflation than
fort

this

on

effort

an

of

impact

longer fears the conse¬

work for

'l

ago.•!.?:;f/
that

reasoned

is

just

the

as

politically-minded
money
man¬
agers will act to nullify any dras¬
tic credit restrictions which they
may

have ordered

they

as soon as

may

during

its
The President, and more up the gates of liberal credit when
the Wage Stabilization business declines, as they did in
Board, by its action in the steel 1949, The forces of deflation were
-case has virtually invited labor to
going into action as history said
go after another substantial round
they always would do following a
of wage
increases. Does anyone
postwar inflation, were they not
generate

may

in

program.

recently

doubt but that

substantial wage

a

increase in steel will set

similiar

for

industry?

demands

It

would

a

pattern

throughout
appear

that

perhaps the real fear in high cir¬
cles today, however, is not infla¬
but >rather

tion

present

that

armament

the

even

program

will

not be sufficient to prevent a -con¬

siderable letdown in business
Jess

its blind

of
r

the public

considerable body

a

businessmen

economists

and

firm in their conviction that

were

routed
and

by

the

the

free

us

examine

these

the
can

inflation
occur

no

spenders

who

not succumbed
flation

had

previously

to the popular in¬

1948 the

In calendar

plus

Federal

million

$8,468

was

calendar 1949 there

forward

of at

for

has

been

Such

a

program

Soviet plan was

spend

itself to

are

unprecedented, and that pro¬
capacity literally dwarfs
of
1939, nevertheless con¬

ductive
that

inflation

tinued

death*.

It is hard

believe that

is

with

inevitable

the

in

million

revenues

of $6,020

ditures.

The

penditures

development of our armament industry, which can provide, suffi¬

turpitude of

our

Administration's

may

so many

of

The

Boom

any

of the other

economy.

an

in

Federal

Actually the boom that has oc¬
since
Korea, which has

curred

henchmen

well

been directly connected to the de¬
signal a desire on the fense
program, has been largely
citizens to see our due to the demand, for men and
&oods and services. A large supply
of money does not automatically
government return to the high materials
to
build
plants
and
cause a serious rise hi prices unstandards of financial integrity in
equipment for the defense pro¬
less those in possession of money which this nation's
strength as
gram. In the period from 1945 un¬
actually desire and are permitted world power was built.
til July 1950, there
was
a tre¬
to spend it in competition with
mendous expansion of plant and
Politicians
Prolong
Boom?
one
another for a limited supply Can
equipment
which
was
at
first
of goods (unchecked in their ac¬
What about the second
argu¬
inflationary because it consumed
tions by effective price control ment—that the politicians can and
man
hours and materials in the

part of

and

rationing).

v

many

will keep the boom

;

going with un¬

production of capital goods which,
in the production of war goods
during the war, was not what
grams? There is no doubt that a those
managers
an in¬
receiving
the
increased
flationary bias, and cannot and substantial number of politicians Jmoney incomes could or desired
will not permit A depression, and in Washington would spend our
to buy.
However, once the peacetime
therefore, will use the devices of money for anything to keep the
boom going. However, if they find
plants are built the huge output
®asy .money, _and easier
that; despite the fact that the con- of these plants becomes at least a
and
sufficient to do the job they may
stabilizing if not a deflationary
developing recession dead in
well
be
confronted
with
some
force. Once the armament plants
ds tracks, as they did in 1949.
strong resistance to vast public
During a period of international works programs—at least until a
Continued on page 21
tension, cannot expanded defense
What about the first argument—

that

-

the

politicians and
will always have

money

limited

expenditures for defense,

as

foreign aid, and public works pro¬

^credit,

^vlsh PVbhc spendmg to stop

This announcement is not

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

an

The

$60,000,000

•

in¬

The Columbia Gas

ex¬

mainly explained

System, Inc.

by increases in net purchases from

V/%% Debentures, Series C Due 1977
Dated

construction.
Works

Public

the

as

a

Due

April 1, 1952

April 1, 1977

Factor

Price 100.929% and accrued interest

place these
erstwhile believers in the possibil¬
In

(2)

to

indefinite

an

More

second

ity of deflation are now convinced
politicians, to

that the Washington

The

expenditures can be made to serve
the same purpose? These defense

Why have they decided that a
is impossible and that
more inflation is coming? We will
have time to examine only the
major causes for their conversion
deflation

school.

inflationist's

-

-expenditures,
eign

of

can

but

actually

debt

and

its tremendous

guarantee

a

super

boom, with international tensions
not likely to case much in the fore¬

commitments

address

the

gov-

by Dr. Be'lemore before
-Essex County Savings Bank Forum,
April 15, 1952.
'
>
'

the




sums

and

are spending considerable
in housing and public works

roads,

and

it

should

be

ob¬

vious to all that these plans would
be

&

COFFIN

DICK

BURR

&

INC.
A.G.BECKER & CO.

BEAR, STEARNS &, CO.

INCORPORATED

HALLGARTEN

MERLE-SMITH

& CO.

INCORPORATED

HORNBLOWER

CARL

LADENBURG, THALMANN & CO.

&. WEEKS

vastly expanded if defense ex¬
' did
not producethe

M. LOEB,

STROUD

WEEDEN

& COMPANY

AUCHINCLOSS, PARKER &

REDPATH

INCORPORATED

BAKER, WEEKS &

& CO.

COOLEY

& CO.

& CO.

SHIELDS & COMPANY

& POMEROY, INC.

INCORPORATED

BACHE

L. F. ROTHSCHILD

RHOADES & CO.

SCHOELLKOPF, HUTTON

they

all,

such

including vast for-

preyent one. Because of the high ments
financial

HALSEY, STUART & CO.
AMERICAN SECURITIES CORPORATION

aid programs, we are told,
not only keep the boom going,

believe seeable future, according to ma¬
that the politicians cannot permit jority opinion, it is argued that a
a
depression with its price col- high and even an increasingly
lapse and the resulting hardships high -level of vast defense expendand unemployment. To say that itures are guaranteed,
they cannot permit a depression
Even during the defense buildimplies, of course,, that they can up the Federal and local governFirst

national

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

pe¬

Inflation?

• -t

Since Korea

million in expen¬

rise

was

and

in

continued

cient demand to take up any slack

American

the moral

very

people, and debts, that inventories in all lines

that the long-run
to make America conjunction

for this economist to

cur-

go

program

Federal

a

was

they

conditions
The majority opinion today is
spring of 1946. fhat, despite the fact that the con¬
a
real concern' sumer is loaded with goods and

collapse. They bear in mind

Lenin's concept

least

Why

*An

that

going

money

the

some

million, a differ¬
ence of $10,346
million. This was
accounted for by a drop of $4,326

port unlimited expenditures for
creeping inflation
public works even before a major
in which the purchasing power of
recession has developed. Further¬
the dollar will be steadily declin¬
more, since the outbreak of war in
ing.
Korea, is it not clear that defense

the

boom

psychosis,

riod

(1)

easy

strong men in Congress,
saving the dollar from ulti¬

by

major

money—demand deposits and

sharp

look

to

all-time low in interest

in

shown by many of our

in

have
shifted
-prevent any serious deflation, will,
They are convinced if
necssary,
push
vast
public
inflation need not works and vast
public housing
necessarily be followed by a peprograms. but what is more imriod of deflation. In fact, they now
portant, that the public will sup¬
a

the

of $1,878

deficit

and

have been backed, takes considerable time to plan
bloc in Congress and to put into operation and the

Inflation fight to save our financial integ¬
only when the supply of rity. The current revulsion against

sur¬

and

their position.
that

serious

a

at

major war—and World War abroad, grants in aid to state and
be no exception—brings local governments, increased com¬
in its wake a period of inflation pensation of employees, and new

businessmen

keep

process..

every

by a severe depression
and particularly a Sharp decline
in commodity prices.
Since 1949, however, a sizable
proportion of these economists and

Re-

people will permit
that develops in
American dollar to steadily
mystery about deteriorate without one last-ditch segments of the

II would

followed

in

managers

money

public

them

to

both the national and local levels..

crease

lethargy,

Before 1949
of

un-

be scared out

can

There

mate

opinion. There is

become really effective even
an inflationary splurge—
government witness what
happened in the
rearmament summer of 1951—so will they open

the

the

as

a

and

representatives in Congress to rency—-increases faster than does
-a balanced budget,
v • ; the available supply of consumer

its

It

few of

the

rates

re-. reached

higher wages? And thus
spiral of inflation goes on

Let

They believe that the money
problems that managers will join the advocates
currently
be- 0f free spending as they did in
set the inven- 1949 anci that the Administration
tory - loaded will be aided by the Federal Re¬
and
heavily serve as was the case three years
nessman.

since

these

that

the

tenets of the inflation, or at least

all the

ing

experience

.

of deficit financing, nor
the moral courage to force

it

tached

by

independence from the works program.

more

and
strong

Arguments Against Inflation

quences

has

and

forever,

inured to Federal deficits

no

proposed

the Federal

country

for. Treasury,

demands

clear from

on

so

policies

authorities have shown more, have no plans for a vast public

serve

this income. Further- no deflation, thesis, on which there the
it is believed that the pub- -is currently so much unanimity of the

based

fense program

In .this

still

the

and the government revenue

-de-

a

in. higher prices, which in
form the basis for. demands

turn

ernment

come

their

in

increases Automatically

wage

•

its decline

seers

don't have the word "defense" at¬

becomes effective!

postwar

>h

■

cannot permit a sharp
in
commodity
prices,
echo both in the business of Wall which would in turn result in a
Street and Main Street as many sharp decline in the national inThe

from

support?

decline in business may
far before the delayed

for

spiral due to higher

in. It may be a lot harder than
they realize to get approval of
that high public expenditures, if they

constantly increasing wages hav- by a
ing
little 1 connection
with; the headed by Senators Douglas and
growth
of
productivity
of
the. Byrd. We have come a long way

price rises, and prevent continuous inflation-

ary

has actually set

to serious deflation

workers. Is it not

high wage-'laboristic economy." Looks for consumer ?

a

resistance to curb

succeed

to
-

(2) the government will push vast public
employment; and (3) labor unions can f

,

called

expect the unions, backed by
politicians, and even it^seems
by a "Wage Stabilization Board,"

...

maintain

to

has

can

permit depression and therefore will resort to heavy govern- v

spending;

freely

meaningful
way.
Furthermore,
Lord
Keynes
have" suffered
a they have been so convinced that
number of very major setbacks, defense expenditures alone would

the

-

-

works

used

popular

really in what spending

are

"laboristic economy," and that we

garding inevitability of a depression in wake of inflation, lists
as their reasons:
(1) politicians and money authorities will not J
ment

we

Slichter

Professor

re-

be

who

"

University

explaining shift in views of economists

economists general

~

•

.

businessmen

and

Economist and Director, American Institute of Finance

Dr. Bellemore, in

these

have been
Actually,
the
facts
are
} the last to be converted to the hi- throughout the world since 1946
,*i
inflationists' school are now con- the easy money and free public

Chairman, Department of Economics, College of Business
Administration,

expenditures

stimulate the economy with quite

Finally,

(3)

DOUGLAS JHL BELLEMORE*

By

to be guaran¬

teed."

Will Wage Increases
Now Be Inflationary?

1.5

(1607)

GREGORY

& COMPANY

BALL, BURGE &

HARDEN

& SON

IRA

HAUPT & CO.

KRAUS

HIRSCH & CO.

INCORPORATED

NEW

YORK

HANSEATIC CORPORATION

R.S. DICKSON

& COMPANY

E. F. HUTTON

SWISS AMERICAN

& COMPANY

CORPORATION

KEAN, TAYLOR & CO.

INCORPORATED

WM. E. POLLOCK

&

CO., INC.

STERN

BROTHERS & CO.

April 17,1952.

penditures

i

The Commercial and Financial Chronicle

m

Thursday, April 17, 1952

v.

.

(1608)

complacency toward their
greater or lesser

their,

investments to a

degree.
The

.

■■■

>

Public

this problem is

to

answer

Utility Securities

of explanation, of per¬
sonal interest shown and demon¬

simply

one

By OWEN ELY

strated, and wherever possible the
Your

with

as

many

is

there

when they

Create "Customer Understanding"

will stop doing every¬

anything,

thing

and

about

their

one

investments

toeak in the

securities,
cline

in

price of

Some

market.

the

watch

vestors

general de¬

or a severe

the

sharp

a

of their

one

in¬

more

papers

cGfeosely than others but there are
few of them who ignore in¬

troery

termediate

price

©ompletely.

It

fluctuations
natural
that if a particular security does
suffer either a radical price de¬
is

only

adline, or from general price ero¬
sion, that the person who owns
at begins to have some doubts as
its

Id

intrinsic value.

-

There is another time when you
.can

expect

<ciim

to

natural skepti-

some

into

creep

client's

your

attitude toward your general

ity

as

advisor. That is

an

abil¬
when

you

have suggested that he move

«Mt

of

certain

^tEstifiable
<ofcher

securities,

stocks.

But

soundness of the
vestment

Prepare

happen.

a

the

tive

is

that

jfdacement
worse,

down,

go

both

could

as

re-

a

even

or

happen.

You

then faced with the very like¬

are

ly possibility that even your most
loyal clients may be somewhat
jarred, and suffer a loss of con¬
fidence

in

high

Build

JECTIVES.

influences
anyone;

are

beyond

and

as

often

the

you

due

to

control

know

of

such

erratic

moves are often complete¬
ly unrelated at times to underly¬
ing values. Of course, there are

(times when stocks do suffer price
declines that correctly appraise
the

future and

these

should

he

that

changes

are

of

One

tions

the

client

a

important to
where you

or

,problems, which must be faced),
knowing about these things in
advance, it is possible to prepare
not

that they will

become alarmed, or lose

fidence
and

so

in

what

what
you

they have done,

are

This

attempting to

announcement

not

5%

Mr. Smith, but

you

ten

from

years

air and

to

is

Most

off

in

the

for

have

looked

stocks

in

the

as

of

mood

or

the

is not

man,

in

the

stocks which met
various

advisor, or to a se¬
and they hope for

best. The least

ance

stock

little

of

segments

the

affects

banks

savings

mitted

invest

to

in

the

in

bank

Another

per¬

shares.

1' ).'•

electrical

on

'

•

probably favorably affected the

No¬
Federal excise

-

the

tax

energy.

savings

would

be

correspondingly

larger

than

x

i

J

•

*

'

.

i r.'i

;

"

'

•

•'

«';v

!•»

shares during

but this might be estimated around 5%..-After theseadjustments, common share earnings declinedrperhaps 6% last

year,

indicate a gain of
month over the previous

The January figures, however, seem to

It I

Culver Opens

,

Arthur Oilman Opens.

Office

E. Culver
has opened
offices at 106 East
Morris to engage in the securities

f

,.

.

-

•iH

HOUSTON, Tex. — Arthur-R.
Gilman is engaging m a securities
business fror" offices at 4708
Caroline Street.

■

SEYMOUR, Tex.—J.

E. E. Mathews Adds
Bruce Gideon

;
t

,

f.i.

7

.,".f

;
,

7T7TTT

Opens

(Special

7 MUNCY, Pa.—Bruce E. Gideon

:;
"•

-

business.

THOMAS &. COMPANY
'

in mind that changes in net income do not

be kept

January.
\ t

MULLANEY, WELLS & COMPANY
*

must

figure as

gain in electric utility plant.

perhaps 7-8% in share earnings for that

HALSEY, STUART &. CO. Inc.

*

It

year.
t *'

"M'V

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

INCORPORATED

the rising costs of

figures for the increase in the number of common
two

"1

GREGORY &, SON

over

accurately reflect the status of common stock share earnings. Pre¬
ferred stock dividend requirements increased 6.1% in 1951, which v
reduced the balance for common stocks.
There are no accurate

'
y

been some concern

has

January increased only 9.4%, exactly the same

the percentage

Due April 1, 1982 77

,

there

preferred stock financing, due to higher interest rates,
the utilities have not felt this factor as yet.
Interest on long-term

Light Company

( f




which

bond and

.First Mortgage Bonds, Series F, VA%

April 17. 1952

bi-monthly

during the summer.
Thus total tax payments in January were
up only 11% over last year as contrasted with a gain in nearly
20% during the calendar year 1951.

debt in

Price 100.76% and accrued interest

.

clerical end

This applies to residential and small
commercial business only, and since consumption in these divi¬
sions of the business is considerably higher during the winter

tax

the

The

factor

vember-January results was the elimination of the

.

-

recovery

most utilities, their total labor bill increases

rates by

wage

months

Wisconsin Power and
•

the

7;' <7,77'

prices.

While

April 1, 1952

in

factor

billing, greater use of accounting machines, etc.

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

$7,000,000

■;

con¬

an

The

Dated

electric revenues

total

only about as fast at KWH output. Economies in the
of the business are also effected by such policies as

securi¬

not

in

possible to obtain increased output without adding to the number
of operating employees—the new units require much less super¬
vision than obsolete ones. Thus despite regular annual increases

the measure,
are

of 7.9%

gain of only 6.5% in total sales of electric energy.

Generating economies are also reflected in wages, since it is

opposition from

ties industry. Under

disturb¬

market

fuel

regularly for 10 years
purchase.
It
is . the
restriction of holdings to listed

bought something. Others sort of
gingerly give their reluctant con¬
curities

the

Moreover,

acquired must be listed on

preceding

them, or because a
acquaintance has also

an

its

indi¬

dividends

the

moment sways
friend

company..:

of

any

a

of electric utility earnings,,
operating expenses. Thus in January
total operating expenses increased only 5.3% (fuel was up 7.7%,
salaries and wages 6.2%, and miscellaneous expenses 1.4%). This
was quite a
favorable showing in an inflationary economy, with, ;
raising prices for metals. It seems due largely to continued instal¬
lation of efficient new generating units, combined with favorable

registered national securities
exchange, and must have paid

candid mirror. They collect se¬
curities as they acquire surplus
or

of

increase

an

Another

a

a

funds,

,

1%

than

stock

KWH revenues for indus¬

has been better control over

corporations, nor

more

the

in

vidual

stood

never

whichever
provides also

bank is to hold more

of the outstanding capi¬

invest

assets

you.

themselves

at

to

in

trasted with
It

7.5

average

service, combined with gains in some miscellaneous items,

trial

Dewey

resulted

tal stock of any

perspec¬

him, and for

people

and

proper

£.

Thomas

6.6

moderate increase in

The

as¬

one

than 2%

ap¬

real

customer's

to.

7.3

7.8

Industrial

smaller.

no

10.4%

12.8%

Commercial

50% of

the

Revenues

Sales

KWH

Residential
,

undivided profits,

that

,

the comparisons for January:

are

a

surplus

and

now,

entire

puts your
your

event these

in

its

or

its

less

Percent Increase January 1952 over January 1951

bank

up

of

sets

much

so

isn't that so?" It invariably clears

fidence to
con¬

is

will be financially five

and

years

tive—both

hazards,

"It

is,

stocks

in talking with

use

as

orporation

c

securi¬

a

obtain

probably

promotional rates than home users, and other factors
the level of industrial activity are also at work, but in

measure

invest

to

ques¬

where you are today that is most

establish what I would like to call

'{customer
understanding.''
By
■that, I mean to say that these
situations are
bound
to
arise,
they are part of. the securities

heard

ever

ties salesman

interests

customers

the

now.

effective

any

the

in

noted

such

ly

o u s

for the higher-bracket usage.

industrial ' consumers

and

benefit from

"Chronicle",

increased

from

years

most

I have

tomers, however, it is possible to

your

evi

savings

proach

of the

p r

Commercial

As

15.

sets,

gets the benefit of lower rates

on

empowers

the

From the
standpoint
relations with your cus¬

(one

April

to

an

stressed

electric ranges, etc. are being added annually and
residential use of electricity thus continues on the up¬
As the amount of electricity used increases, the consumer

TV

grade.

E.

income, and sound growth of his

five

as

showing

have

average

signed by

Dewey

or

achieve

of

Thomas

not this
or that stock goes
up oh down a
few points here and there, but

of

business

important

New

Governor

the

not

stocks

was

his

whether

client

your

inevitable.
your

is

uptrend. In asking for rate
commercial and industrial
rates more than residential, although in some cases the increases
were on an overall basis.
The reason why KWH sales of residen¬
tial electricity still show larger gains than the corresponding
revenues
seems due
principally to the use of promotional rate?
schedules for household current. Millions of new appliances such
utilities

the

increases

corporations

pur¬

from

reselling

Keep

it

that

fact

the

up

investment

of

in

companies are now beginning

important factor is that the

other averages are

but

under specified restrictions,

vest,

OB¬

client's

the

to

as

get some benefits from rate increases. It is true that average
KWH revenues for residential service are still steadily declining,

savings banks in the State to in¬

or

view of your

amendment

•

to

savings bank law, permitting

principal,

ability.

your

Fluctuations

York

surprisingly good

the 1952 outlook for electric utilities.

invest in corporate equities

to

The

being

stock will move up or down, or

how

Savings Banks

signed by Governor Dewey.

the fact that no one knows when
a

market

An

er

utilities made a

of 8.5% in November,
compared with the
corresponding months a year ago. The December gain was prob¬
ably due in part to adjustments resulting from previous overaccruals of Federal income taxes, but was nevertheless surpris¬
ingly good as compared writh some earlier months of 1951. Of the
ten monthly statements through October, only two (February and
September) had shown slight gains over 1950, while seven had
shown decreases running as high as 11%, and one month had
broken even. The combined result for the year was a decline of
one-half of 1% in net income. While it may be unreasonable to
forecast a reversal of trend based on the results of three months
only, nevertheless the figures afford a basis for optimism over

Measure authorizing limited pow¬

made

electric

the

gains for all class A and B electric utilities
18.8% in December and 14.2% in January,

re¬

concern

of

showing in the months of November, December and January. lite
bulletins of the Federal Power Commission showed net income

In Common Stock

movement in the
sold. Clarify

price

upward
stock

Earnings

Permitted to Invest

temporarily there may be an

rfhe

bought

M. Y.

a

out at the time the move is

that

little

be

temporary

you

replacement that is a
better
value,
or
offers greater
long-term growth, more stability
in the event of a general business
recession, or any other basically
sound reason for the change. Point
suggest

standpoint.

has

and

future,

market

limited

stocks he has sold either go up, or

he

Electric Utilities Earnings Improve

planned

a

changes.

proper

where you move

in¬

temporarily

garding

in

light. Take the case
out of a specula¬
stock that appears to have a

their

poses

ones

things

such

need

there

your

Place

them.

for

before
they
customer

fluctuations

price

range

an

on

perative that you expect the pos¬
sibility of adverse and temporary

the

despite

move

basis,

any¬

low it may go, and if
that happens it should not be dis¬
turbing. Then go into the longer

for

and reinvest in

reason,

fear

people

reason

is because they are in the
dark about it. It is therefore im¬

of

and

This is when there is

you.

The

thing

think

and

Such

includes the management
of a portfolio that has sufficient
reserves,
sound
diversification,
speculations only when desired
and justified by times and condi¬
tions, and provisions made for a
portfolio review at regular in¬
tervals. When this is accomplished
program

in¬

But

long range program

a

client.

the

for

over-all investment program.

time

vestments.

better

do for them in achieving a

it is
things

their

besides

about

think

it©

just

customers,

all of us, have

creation of

t;

to

The

Financial

BOSTON, Mass.

—

Chronicle)

Morgan :M.

is engaging in the securities busi- Browning is now. affiliated with
ness
from .offices at. 216 South Edward E. Mathews Co., 53 State

Market,

;

,

street.

V,.;

.

:

-

.

/.

Volume

Number 5103

175

The Commercial and Financial Chronicle

.

.

.

(1609)

tive

instruments^ and procedures. His data also show that, while the gathering

'

Natural Gas Supply and
Federal Regulation

selection

The

scientific

natural

Natural

the

reveal the

gas

a

from Texas reached
City area more

York

risk

able

has

available

will

supply

in

of

excess

is

ican

lion

year

United

cess

the
States

produced

This

Since

15.6%

produc¬
61%

Gas,"
Lyon

F.

Terry

through¬

still greatly

country

the

ceeds

estimate,

capacity

ex¬

existing

of

of

Oil

with

conversations

I

pipe lines and additional lines are
being laid as fast as steel can be
obtained. In this phase of active

not
1

and

(1) Will the supply of gas be
adequate to meet the increasing

1

lieve

that

the

figure

mum

lead

500

me

trillion

mini¬

probably

was

to show that Federal regulatu

available

residential

to

consumers.

The proved reserves of natural

the United States are estithe Committee
_

mated annually by

Natural

on

reserves

oil.

Natural

the

same

formation;

structural

Gas

of

Reserves

the

American Gas Association. Its recent

estimate

was

194

of

as

Dec.

cubic

trillion

31, 1951
This

feet.

field hav¬

a

reserves,
as

in

year

drilled

were

wildcats

rank

the

and/or

fi-

hence

jor companies

of

dependents

shallow depths and from

were

While

1

rank wildcat in

9 tests

is rated as a discovery, Dr. Lahee
points out that a discovery of a

I,000,000-barrel field is "near the
economic

limit"

and

such

success

the

only

are

reser-

Wildcatting
2 Frederic

re-

ing
_

in

H.

1950,"

vealed the most likely prospective Ge'oi., Vol.

is

a

risky

of

odds

1

in

44.

business.

Lahee, "Exploratory Drill¬
Bull. Amer. Assn. Pet.
_

35, No. 6

..

.

.

«

* W

.

feet. And the ratio of

to

reserves

annual

production, now 24.3, will
probably continue to decrease, but
that

need

not

cause

additions

as

substantially

serves

concern

to

so

known

re¬

estimated

(June, 1951),

pp.

feet,

or

much

as

for

the

cubic

were

trillion

cubic

16.2

slightly more than twice
as production. Similarly,
past

feet,

five

on

about

years

the

been added to known

2

have

average,

for

reserves

veach cubic foot of gas produced.
It

is

this

proved
to

increase

continual

that is

reserves

keep the industry

in

necessary

on

a

sound

basis.
The
.

long-range problem of the

.

future

supply of natural gas

discussed by me in

a

paper

sented before the Annual

was

the American

October, 1950.1 While the total
the

a

less

address by

Institute,

Pittsburgh,




t

or

found.

*

re-

Pa., April

and

supply

of

thus

oil

and

Gas

the

Act

of

Federal

gas."

However,

.

.

.

1938

Power

the pro-

of

the

natural

Commission

early claimed jurisdiction
tions

of

and

over

gathering

interstate

(l)

Regulation of transmission
distributing companies serv-

ing

communities

of

residential

Such

consumers.

companies, like
other public utilities, are held to
be affected by a public interest
and

protected

are

from

by

competition

franchise

in

their

small the fu¬

helpless

customers

of

such

against possible unreasonable
charges for service, their
earnings are subjected to regula¬
tion!
By being protected from

the

opera-

transmission
as

"natural gas companies" and this
has been sustained by the Courts,

and

these

areas

lation

in

the

all

are

community served.
but guaranteed a

Consequently, such companies maintain their credit and
finance their growth on the basis
of

a

moderate rate of return,

(2)

Regulation of oil and gas
Such regulation
by

producers.

State Commissions is to insure the
conservation of natural

and

to

protect

producer

the

oil

and

gas,

soundly

conservation

sources.

FPC

To

of

remove

based

upon

natural

re-

doubt

any

as

jurisdiction of the

natural gas producers
other than interstate transmission
over

demand takes
gas

care of prices in the
producing field where there is

plenty

of

competition

producers

and

between

gas

'

ers.
The

„

producer,

to

stay

and

cost

in
companies, the Rizley-Moore Bills business, must keep onfinding
brought before Congress in new gas
reserves.
His
profits
1947, followed by the Kerr Bill from production must also repay
gas

introduced in 1949. The Kerr Bill
was

passed

by

Congress in 1950
by
the
President,

vetoed

Thereafter

against

the

the

FPC

Phillips

him

for

his

risks

of

lines,

and

pressure.

exhausting

proceeded ments of the large, successful oil
companies which show fine earn-

Petroleum
Company to ascertain whether it

ings, especially in good times. But

held

^ew

jurisdiction

over

the

com-

are aware

of the losses of the

Continued

pany's natural gas producing and

on

$165,000 semi-annually November 1, 1952 to May I, 1967, inclusive

unconditionally

as to payment

of principal and dividends by

Illinois Central Railroad Company

This

i accom¬
_pounc*
be

will

plished at increasing costs which
will need to be paid by the conthe

sumer—to

extent

that

Priced

to

the

yield 1.95%

to

3.00%, according to maturity

Issuance and sale
The

of these Certificates are subject to authorization by the Inter tate Commerce Commission.
Offering Circular may be obtained in any state in which this annoti ncenent is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in such state.

such

they

want the gas

HALSEY, STUART A CO. INC.
Risks

The

oil

dustry

of

and

has

Exploration
gas

built

producing in¬
up

its

present

large productive capacity and
1

of

F.

Natural

Assn.,

pp.

Terry,

Gas,"

"The

1950

155-159.

Future

L. F. ROTHSCHILD A CO.

THE ILLINOIS COMPANY

FREEMAN & COMPANY

McMASTER HUTCHINSON A CO.

re¬

by developing very effec-

Lyon

R. W. PRESSPRICH A CO.
IRA HAUPT A CO.

Supply

Proc., Amer. Gas

WM. E. POLLOCK A

CO., INC.

GREGORY A SON
INCORPORATED

April 16, 1952

of

searching for new supplies.
The
public is familiar with the state-

lines, the extension of present

pipe

between

purchas-

were

in locations far from present

mains by an enormous network of

resources

one

against drainage by a neighbor—
other hand, the several not to
regulate earnings or prices.
State
Conservation Commissions The producers have no
monopoly,
have long since held
regulatory no franchise and no guarantee of
jurisdiction over the production of earnings. The law of supply and

To be guaranteed

•

are

utilities

enjoy
an
assurance
of
steady
earnings and permanence corre¬
sponding to the growth of popu¬

(Philadelphia Plan)
mature

util-

ities

2%% Equipment Trust Certificates

To

re-

spective
territories.
To
protect
the numerous small and otherwise

Equipment Trust, Series 35

eventually prove
will require deeper

in-

gas

and

They
Act specifically provided that profit.

it "shall not
apply to
duction or gathering

natural

competition, the business risks

Commission to regulate interstate
gas transmission companies. But
the

the

much reduced

Companies

Natural

authorized

in

dustry:

Illinois Central

No

be, they
deeper drilling at increasing
costs. And to find and gather the
future gas supply will ultimately
require drilling all prospective

our

pro-

wildcatting to

reserves

two general forms of
that have become es-

are

and

Mr. Terry before the
the American Pe¬

3, 1952.,

be

to

large

to

Production Division of
troleum

rtc

discoveries

ture

serves
•An

field

matter how

Gas Association

including

11

increases sharply at great depths.
Each new field discovered means

Meeting

in

supply,

I

W

while recent drillings
20,000 feet. The
well, per foot of depth,

years,

independent

new

Gas

pre¬

of

future

rnnzinf

urhilo

There

$4,950,000

exceeded
of

cost

pro¬

revisions

and
at

font

have

one

exceed

duction. In 1951, for example, ad¬
ditions to reserves by discoveries,

extensions

11 /111

8,000 feet,

for

area

gas.

but

voirs that were the most -readily
found. Early geological surveys

by many competing companies

the

to the possible

successful.

successful.

were

the

the

9% of those by minors and in¬

the

from

was

com¬

18% of those completed by ma¬

Oil and gas have been produced
in this country since 1859. In the

early days, production

independents.

pleted in 1950:

exploration

require

or

Of the total rank wildcats

gas

type

completed by minor

were

structures. Such exploratory work "23-1141
was followed by geophysical and
improved techniques and drilling
II, that ratio has been decreasing, to greater depths on less perfect
Five years previously the
ratio an<^ ^ess bkely structures and in
was 32.5. Production will continue more remote areas.
Prior to 1900,
to increase rapidly and by 1960 wells had been drilled to only 3,000
may readily reach 15 trillion cubic
1925, tests had gone to

.long

takes

the

ducers and random

On

production
and, with the rapid expansion of
the gas business since World War

-

It

scanned

companies, defined by the Act

1950:

is 24.3 times last year's

T

had

producing

of

future dis™veI'y of new gas rewill

serves

total

the

76%

for both oil and gas.

The Supply of Natural Gas

gas in

in

in 967 discovered

companies

were

nature

field of at

a

largest

field, was found in 1930 by
Dad Joiner, financed on a shoe
string, after the major companies

The

was

nancedjby major companies.

originated by simi¬
lar earth processes and are found
in

in 44 discovered

24%

Exploration for Future Supplies

oil

successful, i.e.,
dry hole.
was

drilled

be discovered.

and

a

9

Of

supply consists of reserves yet to

search for crude

Does the welfare of the
consumer require Federal regula¬
tion of the gas producer? I pro¬
(2)

in

The

prospect.

Federal Regulation of Natural

too

In
any
case,
the
important part of the future

Much of the known

the

oil field in this country, the East

rank wildcat

i.e., what is usually referred to
a major field.

conservative.
most

or

ing 50 million barrels of

to be¬

natural gas has been found in the

demands?

y
supply

Company.

least 1,000,000 barrels of reserves.

other

expansion, two questions arise:

pose

Oil

been

Texas

tests completed in 1944-46:
1

and

to proved reserves

1946. The demand for gas

the

Sun

which

have

after Standard Oil experts had re-

maintain

of

fields

not

Spindletop field,
discovery field in South Texas,
brought in by Captain Lucas

the
was

lowing significant ratios:

the

consideration of
the recent rapid rate of additions

produced in
out

Amer¬

Petroleum

would

Mil¬

Two Principles of Regulation

discovered.. The

find

to think it too

Supplies

engineers,

than

more

that

no reason

"Future

on

and

tion

the

His latest report2 reveals the fol¬

high. In fact, review of the Na¬
tional Petroleum Council's report

was

over

1950

making

have had

increase of

an

of
of

Of all new-field

feet of natural
gas.

in

found

be

to

gas

Drilling

finding

otherwise

Detroit,

of consumers.

tablished

and

of

ganizations, in the alleged interest

regulation

future.

8.0

cubic

trillion

the

as

and

cities

take

counsellor

proved reserves,
something in ex¬
of 320 trillion, was estimated
were

impartially

the

small independent op¬
taking chances that the
major companies refuse to under-

Geologists, headed by Dr. Frederic
H. Lahee, geologist and research

180 tril¬

and the balance,

Last

of wildcatting

Association

importance of the in¬

of

jected

summarized

ploratory

some
trillion

by

of

waukee and Kansas City, and by
certain
other governmental
or¬

erators

professionally in the annual reports of the Committee on Ex-

then

part of New

England.

presence

such

own
finding of its
jurisdiction is being ap¬
pealed in the U. S. Court of Ap¬
peals for the District of Columbia

producer
in
finding
supplies of oil and natural
The record is replete with in¬

only the

the

rank wildcat out of nine

one

the

have

lack

more

stances

termed "rank

are

shows

gas.

And in practice the
in the drilling of

gas.

The mathematics

be

500

cubic feet. Of that total,

in

rank

degree than the majors,
chances, but, in any
drill more wildcats. This

take

or

the

is successful.

most conservative

on

gas

amount

become

now

the

lesser

a

new

wildcats,"
i.e., tests for the purpose of. find¬
ing new oil or gas fields, is ex¬
ceedingly great. On the average,

yet to be discovered, can-

estimating,

or

what

presented in that paper for

were

Commission's

Al¬

hole,

dry

a

July,

In

decision, that it did
jurisdiction. The

not

reduce

may

4-to-l

a

independents

gas.

or

determine

incurred

only

serves

of

can

of oil

oil

science

chances
drill

premises, that the future recover-

year

and

ago

con-

in

dependent

contain

studied

properties.

1951, the Commission announced,

in¬

of

the
three-fourths

case,

expand at a rapid pace, not even be approximated, reasons

New

than

business

gas

the

as

drill

cannot foretell whether the strata

companies.
The

test

dependents,

configuration of
the underground sediments, they

(Suction. Contends Federal regulation of transmission would
upset existing regulation by State Commissions and also would
force small producers out of business. Holds regulation of
producers' prices would discourage search for new gas supphes, and comments on importance of natural gas to chemical

.

improved.

But while such technical processes

though

tinues to

almost twice

are

per

ently employ technical methods to

strata.

being

continually

are

on

I

successful

as

tools and methods of the explorer

two categories of regulation, viz: (1) regulation of transmisrion and distribution; and (2) regulation of oil and gas pro-

|

companies

major

wildcats. The independents appar¬

may

j-

and
other
and indications

surveys

subsurface

rapid pace of natural gas business, Mr. Terry
reviews present natural gas supply and demand situation. Cites
risks of exploration for new gas supplies, and describes the
i

geo¬

These

the

of

By LYON F. TERRY*

y

locations

likely

geophysical

logical,

Vice-President, The Chase National Bank of the City of New York

Commenting

of

is based upon

drilled

be

to

17

page

22

18

The Commercial and Financial Chronicle

(1610)

.

.

Thursday, April 17, 1952

.

graduate

From

Foreign Aid Through
Investment

of the Neivs

By CARLISLE

basis

training

should

the

Companies

S.

instead

whom

eign students
modate

By HON. JACOB K. JAVITS*
U.

to

and

be

applied

l,000,QpO

Americans
ferred

Washington

Ahead

to

of

young

have

I

should

we

re¬

50,000 for¬

250,000—10%

accom¬

of

col¬

our

lege population.

Congressman from New York

Such

BARGERON

leave

a

still

would

program

important

an

for

area

eco¬

Representative Javits, stressing need of economic and technical
rivers and harbors projects
transferred from the Army engineers to the Interior

should

be

the Federal

if

work

based.

which

the

transfer is

that

the

commission

fact

place.

split

all

■

stirs

.;4

assistance

lost

political
even

life

hornets' nest this

Bargeron

.

why the*

as a routine procedure of govern¬
efficiency. The commission, for example,
found that on many Federal domains you would find the engineers
and the Interior Department interlacing in administration. There

transfer should not be effected

and

is.

it

ment is speed¬

next

specific

in

invest

this

ily relinquish¬

construction

ing economic and technical aid in
of military aid under the

should

the Army engineers lording it over flood control projects,
terior bureaucrats lording it over reclamation projects.

Mutual Security Program

national

the In¬

which

sults

-

the projects

which they recommended. From the history of these estimates it
is reasonable and realistic to double every estimate they make

rassed

General Pick and his aides?

before

they had

But do you think this

of Congress
Not in

the

fazed or
slightest.

embar¬

disastrous

be

make

Almost

of saying, "Don't let that report dis¬

turb you in

the slightest, General," roundly denounced the Appro¬
priations Committee, said the Army engineers had a long and"
glorious record of accomplishment and were not to be disparaged
by any such ill-considered criticism as the Appropriations Com¬
mittee

had

This

Public

of

the

corps *

it is realized

Works

Committee

by this committee

that

be

under¬

most,

have

if not all, members of the
sought the assignment because

they want projects in their districts. This is the so-called pork
barrel committee, and over those members of Congress who are
interested in pork, the General rules with an iron hand. The Gen¬
eral has

the

his

members

pet projects and he lobbies
unblushingly.

own

The overall pork business

trades

and

among

to

the praise of the "long and glorious record of accom¬
plishment" on the part of Army engineers, there is a lot of fic¬
tion, as the Hoover Commission points out. Flood control and
rivers and harbors work was put in their hands

originally

grounds that the

corps

had to be maintained for

war

on

the

and these

civil

projects in. time of peace gave them valuable experience.
But the engineers don't build any dams or flood walls or
deepen

harbors.

The work is all done by private, contractors.
engineers draw up the blue prints and let the contracts.
any

So, Interior wins the argument in
It is difficult to

responsibilities

see

a

walk?

The

how

or power

Oscar Chapman can take on
any more
without bursting at the seams. He wants

the additional flood control

authority for the

purpose of pressing
his campaign for public electric power and the extinction
of the

private utilities.
the

Indeed, much of the heat and agitation against
Army engineers, as vulnerable as
they are, have come from

the Leftists

and

the

Public Power

crowd because the engineers
Another thing, the engineers
stay
from party politics. Chapman, the Leftist and the Public
Power crowd are, of course, in
party politics up to their necks and
are

not Public Power minded.

away

are

seekers aftei

and take your

political
choice*




power.

So you

put

your

money

down

and

is

assistance

the

to

to

can

built for

shield
which

definitely faced for
two.

or

vestment

is

Productive

business

a

in¬

function.

American business is well able to

foreign

discharge
that

joint

it.

it is

that

It

its

must

essential

an

of

recognize

people

our

security

own

of the

arm

and

and pros¬
ahead re¬

in the decades
quire that it undertake this task

Advisory Board in March, 1951.

areas,
Jn "other
proposing to spend
in our foreign aid program about
92% on the defensive phase of

gotiated by the State Department

the

against communism
8% on the offensive

providing equal treatment for the
investments of these joint com¬

tries in South and Southeast Asia,

underdeveloped

words,

and

is

for
Treaties

we are

only

Yet it is

this struggle.

that

beamed

panies,

Communist appeal

the

directly

and

1,075,-

to the

servation

which

in the free world,

tax

level

near-starvation'

on

$100

America.

distress

is

the

radical

change

Marshall
creased

from

the

Plan—due

the

to

ation

ex¬

or

unwillingness

gress

to

back

economic

Business
~

I

of

Should

Take

a

to

provision

that

country

tual

located in

1,000,000

men

ricultural phases of economic and
technical, aid
I wish to

to

the

emphasize that by Amer¬

ican business I

management,
labor, investors, farmers and con¬
mean

customs

and

of

countries

the

and

of

AFL

Farm Bureau

and

to

laws

the American

Federation* National

...

to

the

so

role

be one of American

for

for

the

International

Reconstruction

and

ment and cooperation
eral

Government;

a

Bank

the

Develop-,

will

period

reasonable

of

years.

fortune

,

to

our

mean

in
*An
at

the

address
Annual

by

Representative

Convention

of

Na¬

With

.

in

Asia.

If

India

China, the free
only have lost Asia
of

the

morals

and

The
the

ethics of India and the fundamen¬
tal

beliefs

strongly

of

her

people

appeal in

a

are

anti-Communist, yet

Communist agitation has

a

strong

country in such dan¬

ger of famine and starvation. The
recent

Making

India

should still

in

youth's major

parliamentary elections in
alarming strength

showed

some

states for the Communist

ticket.

,

r
,

be

increased
necessary
aid

vastly

the

*

Another example is in the vast
colonial territories of Africa.

have
the

They

the

capability for making
European powers which ad-

private business and govern- ;• minister these; territories—Great
France, ,-Belgium
ment.
The necessary orientation Britain,
and
and training facilities on a post¬ Portugal — economically self-suf,

tional

Paper Trade Association of the
United States, N. Y. City, Mar. 25, 1952.

size

way

from

Javits

the

world

the

religion,

-

should

India,

but may have lost the battle.

and colleges and
technical and industrial insti¬

tutes

the recruitment and training of as

under cul¬

living standards.

world will not

schools

Our

free

goes

incentives.

by the Fed¬

It

a

over

The Colombo Plan for In¬

at present

they may amass a competence

Grange and other farm organiza¬
It will require mutual co¬
operation by business itself, a new
tions.

help

Colombo

by enabling India to hold the line

favored treatment
people so engaged

give

young

serious effort is being

no

with its 330,000,000 people, is the
most
important country left to

should be asked to amend our tax

the

Program

by 3.5%, land under ir¬
rigation by 17%, and will add
6,000,000 tons of food grains or
10% to the present supply, there¬

not

Manufacturers,

\

tivation

The first

sociation

raised

of $100,000,000. Ob¬

dia will increase land

just anyone of which they are going. They need
impetus should be. to be oriented to living with and
given by the leading business or¬ working -with the local peoples
ganizations like the Chamber of concerned so they are not isolated
Commerce and the National As¬ in American colonies.
Congress
and

sumers

these.

Assistance

area

the

India.

program

world.

free

be

Plan; yet this
plan is
absolutely essential to
avoid .recurring famine
and to
give self-sufficiency in food to

with manpower, should
be especially recruited for work
abroad, trained in training schools
for their job3 and in the languages

to

Defense

with

who I estimate to
implement such a

colleges,
needed

be

could

maximum

viously

and

and

what

made by the United States to

graduates of our schools

ness take over the major respon¬
sibility for the industrial and ag¬

than

is in the

:k

young

in¬

provided in aid
of this program in this year's Mu¬

country where
American
corporations

women,

be

to

was

in

of frozen sterling
$840,000,000, leaving
$2,000,000,000
of
capital,

The

establish¬

in overseas areas.

busi¬

to be invested in India

other

to pursuit of such purposes

The

that American

$5,230,000,of which $3,800,-

locally, to be raised outside.

business

in¬

of

supply, out

about

of

Responsibility

propose

to

continued

assistance.

six-year

a

balances,

Con¬ should give consideration to util¬
major ization of some part of their allow¬
andr technical able exemption of 5% of income
for education and charitable pur¬

tance

foreign

asked

be

and

Colombo

Pakistan.
Of
this
amount, Great Britain undertook

only in the

earned.

penditure at home and the reluc¬

the

j

should

one

for

$784,000,000
y.

the other shall be subject to tax¬

in¬

exigencies of defense

of

ments

policy under the

coun¬

the

of

'

from

income

was

vested

In 1948

Pakistan

program

capital

000,000

nationals

territory

the

treaties

tax

eco¬

in

and

authorize the inclusion in bilateral

forced

been

000

India,

developed

calling

,

vestment

These

bilateral

their

of

other nation.

the government—it represents

on

in

locate^

the free

Congress
has

situation

resources

contain

should

now.

Commonwealth

principally
Plan

compacts aimed at eliminating

establishments

world.
This

local

involved.

people

few figures.

a

British

Ceylon,

v

built-in

major

be

American

gauged by

U.

Economic

communism in

of

threat

the

of

the

The extent of the need may be

discriminatory taxes levied upon
S. corporations abroad and re¬
ciprocal exemption from income
tax of income from the business

of

: Latin

Negotiated

labor standards
provision for con¬

may

treaties

a

under

of

Be

equitable

making

people, well over twothirds of the 1,500,000,000 people
000,000

who live

Should

Treaty protection should be ne¬

struggle

our

CIO

Not for my money.

local

world

decade

perity

is organized

under the impressivename of National Rivers and Harbors
Congress which meets anually and impressively in Washington, although it is concerned
only with the pork of rivers and harbors projects. There are other
and just as impressive organizations to take care of flood control

As

a

by the International Development

$650,000,000 is for economic
technical

and

poses

projects. The Rivers and Harbors Congress will be in the General's
corner in the
forthcoming fight but the flood control lobbies will
probably line up for Interior. •
•

the

to

us

about

nomic assistance
can

by

affiliate, an Inter¬
Finance Corporation, to

statesmanship

a

made.

defense

when

stood

Development

encouraged

it

greatest

maintaining the military
against communism with

equity investments in these ven¬
tures.
This has
been
suggested

projects and the like,

rescue.

the

the offensive against the

as

make

and

This committee, by way

effect

with

on

challenge of communism is
through American business. It is
also the way in which the neces¬

as an

in

carried

invest¬

in which

way

and

income per capita per
year in South and Southeast Asia,
the Middle and Near East, Africa

to their

be

productive

upon

The

sary wealth base can be

and

loans

be

now

ment.

guaranties

opportunity to read the report, another im¬
portant committee, the House Public Works Committee, which
passes on the authorizations of flood control^ rivers and harbors'
an

came

the

government

phase of

view to determining the final cost.

in

Productive

The emphasis in United States
foreign economic assistance must

without

clear

on

of an important committee

projects

on

Investment

auto¬

currencies

for their invariable under-estimation

a

with re¬

pest eradication.

in the underdevel¬
oped areas. Of the total request
for foreign aid by the Adminis¬
tration
of
$7,900,000,000,
only

this matter, is torn between the devil and the;
deep blue sea. There is not the slightest doubt that the Army
engineers have come to constitute one of the strongest lobbies in
Congress, Presumably strong men, elected by their constituents
to come here and legislate for them, genuflect in the presence of
General Pick and even his colonels. Several months ago the House
Appropriations Committee, after a long study by one of its sub¬
committees, came up with a severe castigation of the engineers

with

could

be

organize

particularly

.'

report

like

purpose.

plot would be administered by the Army engineers with their
automobiles; and so it would go on, throughout the domain, Army
engineer bosses here, Interior bosses a few thousand yards away,

of the costs of

lines

The International Bank for Re¬

favor

and

Emphasis

Jacob K. Javits

Hon.

local

with

education, road
and
port development, land conserva¬
tion

ownership and for constantly

for

govern¬

should also include

activities

sanitation,

believe

best be under¬

enterprise, undertaking an
obligation to train local people

neces¬

as

persons

necessity of

governments in the fields of health,

new

for the

sary

The

:

It

refugees, displaced

cooperative

of

aration,

an agency of Interior with its full staff of bureaucrats
automobiles presiding over this particular plot, whereas the

writer,

migration.

affected

increasing the local responsibility

and

This

under tne

our

military prep¬

would be

Apparently nobody should object to straightening out such
a crazy quilt.
But this overlooks the rabid devotees of each group.
Interior has its followers among our citizentry and in Congress;
the Army engineers have theirs, just as there are leather lunged
supporters of the Dodgers and the Giants.

and others

by

underdeveloped areas, provide for
local participation in management

by

aggression

the interest of

aid to

will

tires, textiles, or gener¬
These investment companies

would

Com munist

by

and

I

fit

adequately
appropriations in
of the 8% of the

magnitude

organization of in¬
companies
either
by

in

ally.

with

properly

could be

Security Program
now
contemplated. This should include

.

mobiles,

being effec¬
tively defend¬
ed
against

could

it

by the

those

is

it

as

5

and

taxation.

on

vestment

and

trade

it-

by

area

Mutual

treaties

new

role may

new

taken

,

Commission's findings there would seem to be no reason
ment in

compacts
this

the

Government, art

It

negotiation
with other
of

dealt

men

abroad.

and

commerce

our

economic

the

government

sub¬

version of

work

governments

Com¬

by

for

which

and which

for

women

1,000,000 young

require

underdeveloped

and

men

productive investment.

women

be

may

munist

a

the

million

a

many as

free

world

basis of the Hoover

On the

up.

to

areas, tne

Carlisle

in

undertake the responsibility
purpose. Says

prove a

business takes

major part of the responsi¬
bility for economic and technical

surprised, very likely, in the

next few weeks as to what a

matter

••••

abroad, and should

a

up

the

over
.

You will be

it is

And

of preserving

means

as

areas

recruitment of

mean

Unless American

not

the Hoover Commission arrived at its decision
on

would

move

affirmatively disapproved
by either the Senate or House in a prescribed
time, will become law.
There are so many objections to either
the Army engineers or the Interior Depart¬
ment having this work that it is difficult to
see how anyone can make up his mind, how
Mr. Truman did it, if he has done so, or how
which,

underdeveloped

free world, urges private business

weeks, if, as it is reported, Mr. Truman sends
a measure up to Congress effecting the trans¬
fer

to

by formation of investment companies for that

is a question that

Department, I will have to just vote present. It
will become very burning in the next few

nomic and technical assistance

assistance

question before the House, Mr. Chairman, of whether

On the

the administration of flood control and

Volume

175

Number 5108

..

The Commercial and Financial Chronicle

.

(1611)

ficient, but a recent survey shows
that to develop the territories in

Agriculture and Business

$8,000,000,000 in

the next 10 years

Growth in Capital Outlays
Not Excessive
-

In the general

investment is needed while actual
investment

$1,300,000,000.
The
Congo, which could be

proximately
Belgian

richest

the

of

one

whole

world,

has

in

Estimating nation's business
economist foresees

$70,000,000

the

from

International

Bank

struction

Development.

a

for

over

Recon¬

-

American

Why

at about

American business has very

im¬

for

getting into
this field in a big way quite apart
from the anti-Communist struggle
reasons

next

ex-

panding

de7

one-half,

of;

the

feri-se

we

are

of

the

greater

and

are

ability of

mining

only

world's

mineral

one-third
output

*

be

said
way

t h e/tainty
availsup-

our

regard

And

sus-

these resources. For industrial- ex¬

tained

no

to

the

ness

States is in¬

/invest-

leum.. United

level

pends

industry de¬

imports for
100%

on

natural

States

lead

mium, tin, nickel and
and

30%

of its lead,

and

copper

zinc. Without these supplies Amer¬
ican industry as we know it would
shut down; yet assurances of these

economy

and every

businessman concerned

prices, vol-

Second,
look to

part

export markets, a big

the

national

business.

output

20%

defense,
diture
a

this

will

but

and

year

defense

as

and

—

about

probably

this

long

so

war

to

go

expen¬

don't have

we

business

to

down

basis

maintenance

a

item

The

ness

try

significance
the

universal

munism.
these

busi¬

an

coun¬

and

totaling

will

5%

the

of

a

few of
some

me

my

to

^hat

'

this

ago—at

pected
should

The

num-

increasing

rate, with the
in
population,

rise

have,

before

we

ex-

we

20

are

older, an additional million
firms in operation.
years

longtime trend, v/hich has

not been

altered

far, spells

so

analyze this item

you

as

likely

to

that

conclude

level

small

the

of .expenditures

jn

is

large firms.

or

farming

cline in

we

»

have had

de-

a

farm«T

the total number of

a
result of greatly increased
productivity resting on modern
agricultural science and mechani¬

as

zation.

In 1860

we

had six farms

today are just off the in operation for every firm in
griddle.
They have to do with industry
and
commerce;
today
the
fears
expressed in certain only 1.3.
By 1965 or 1970 when
quarters that the net effect of we attain a total of 5 million
you

agricultural and industrial poli0f

cies

the

past

undermined

20

the

have

years

basic

trends

in

firms>
be

there
million

5

—one

Here before 1932

features

we had a fairly
persistent
downward
trend
in
farms operated by owners.
The

tenancy rate had risen from about
25% in 1880 to 42% in 1930 and

balance

try and their interrelationship.

,.i

-

,

,

These

are

of

listen

continued.

trend

the

basic

ahead

on

to

you
you

as

see

or

and downs

ups

.

In-

still

operation

fearsome oratory

to

.

indus- would now be over 45% had thai the various
long-time

of

years

hold

the developing

.

in

few

a

the

want to

may

probably

farms

farm—one firm.

private ownership and private
enterprise.
Take farming first:

^

will

„

parts

$15,000,000,000

a year.

$11,000,000,000

a year.

ahead

these

if

economy

our

have

keel.

even

be

to

The

are

In the days
doubled

is to stay

on

capability

markets

overseas

Imports

ou/

economy.

.

:

vast
,

to

take

an
<

of

our

goods in this doubled volume and
to produce for our

import require¬

ments depends upon an enormous

expansion of the wealth base for
both

developed

and

underdevel¬

oped countries of the free world
which

be

can

accomplished

by

economic development in the un¬

derdeveloped countries.
A group

of United Nations

"the

development

countries will

poorer

ex¬

ably

slow

flow

of

vided

unless

external

than

at

be in sight."

that
the

even

intoler¬

much

capital

present

larger
is

pro¬

seems

to

It is too little known

under the Marshall Plan

underdeveloped countries, col¬

onies,
ries

dependencies
of

nations
total

which

for

,

a

the

of

be

the
did

and

European
not

territo¬

recipient

get much of the

aid

of
$12,427,000,000, of
just under half was spent

raw

from

now;

in

materials (not

food), ma¬
vehicles,
as
only

chinery and
$312,400,000 went to these colonies
and dependencies.

(Special

to

The

but

stantially to
time

in

department




buy

any

circumstances

no

1953.

NEW ISSUE

rising from

for

as an

offer

to

sell

or as a

'"'''V/- C'#' •'

T''

solicitation of

APril 17» 1952

'4W\-• * \

200,889 Shares

Carolina Power &

a

present annual total

a

be construed

-

gradual increase
income
payments

mean

personal

to

of these securities. The offering is made only by the Prospectus.

Light Company

Common Stock

!

.•

.

of about $260 billion to over $270
•••

billion—and
in

leave

around

and

,The
local

to

Price

prospects
sales

of

The Prospectus may

national

in

terms

be

may

of

ment

more

is

dealers

he obtained in

circulated from only

or

brokers

than

hazardous

$35,125

as

may

laying out these
general tendencies. But there is'f
this

the

justification " in

ample

fact that

(with

regions

anything,

slight

indicators

higher

income

for

Merrill

for

level
1952

of

a

farm

sales in the

The First Boston

Blyth 8C Co., Inc.

-

,

*

Goldman, Sachs 8i Co,

Kidder, Peabody 8C Co.

,

Smith, Barney 8i Co.

increase in retail

New York

from

area

an

that could

be

A. C.

Allyn and Company

Bear, Stearns 8C Co. *

Central

Republic Compa

)

(Incorporated)

about

10% higher, on the bases of post¬

Drexel 8C Co.

Hornblower 8C Weeks

Kirchofer 8C Arnold Associates,

nc

experience.

This

the

is

♦Abstract of

cans

Corporation

-(

simi¬

and

the current subnormal level to

the

Company

Incorporated

total business expendi¬
plant and equipment,
an

R. S. Dickson &

Lynch, Pierce, Fenner 8C Beane

mean

new

foreshadows

war

announce¬

lawfully offer these securities in such Slate.

modifi¬

then the;prospect of

somewhat
cash

State in which this

the '

If historical analyses of

business

key

any

such of the undersigned and other

the nation goes so go

as

cations).

Share

per

-

the farms.

on

retail

the,

in

consumers

pinpointing

business

of

They would
fairly stable level of

a

(Without Par Value)

in

income

billion.

$10

living costs
cities

increase

net

a

consumers'

also mean

.

assuming no change
income taxes,
this

personal

disposable

•

Incorporated

BOSTON, Mass. — George T.
Curley has become associated with
Blyth & Co.,- Inc., 75
Federal
Street. Mr. Curley was formerly
with Kidder, Peabody & Co. and
prior thereto was manager of the
bond

is under

tapering off point

a

in

annual level

municipal

to

for

These generally accepted trends
would

offer

services will rise sub¬

goods and
some

announcement
an

10% lower,

Chronicle)

Townsend, Dabney & Tyson.

This

invest¬

government expenditures

larly

Financial

private

tories may be around

ture for

George T. Curley With
BIyth & Co. Inc.

that

new

construction, pro¬
ducers' equipment and for inven¬

would

perts reporting at the end of 1951
said

the next year; that con-v.
in this total, now spend-,ing about $210 billion, may spend
perhaps $10 billion more a year
over

ment

Business
for

into

W. C.

Langley & Co.

Paine, Webber, Jackson 8C Curti*

talk by Dr. Bean before
Men's Luncheon of Ameri¬
a

Democratic

City, April 9,

framework

1952.

Action,

New

York

m

,

of

sumers,

$30,000,000,000, under 10% of
present gross national out¬
put. Right now our export trade
is running at the high
rate of

a

million opportunities for those in

The other two items I introduce
to

are

between agriculture and

to

wars

and today we have more firms per
100 persons than we had 50 years

not materially out of line with
requirements for a stable peace-

on

4%

$340
expand

concerns.

ber per capita has been

time full employment economy.

interested

stU(jies of the

going business

This

current

years

point to

jiave

only major depressions and

have temporarily altered the upward expansion in the number of

have done with steel you also

are

They happen

many.

for
per

the oncoming generation who, will

(.nte

.

the

for

trend

want to be self-employed or build

-fore-

billion

about
to

guideposts

to

business,

continue

of

only

t term outlook envi
nation's

the

possibly helpful.

capita

per

1929.

we

fright¬

(economic

ahead that I wish

5% to 10% higher than during the
first quarter.

now

growing
course

perspective

get

other

rising
•

expenditure for plant and equip-

a, few basic long-iange facts
our economy may be timely

The

it points to an annual rate of
trade, by the end of this year,

+

the

com-

ment, if

ranao

about

For the New York

To

and

casts

in¬

area,

that

to

and

4,000,000; this compares with
about 3,000,000 in 1929. The rec¬
ord from 1860 to date reveals that

Similarly with regard to the
so-Called high levels of business

down the Socialistic road to Com¬

retail

in retail sales for the

sions

as

a

industrial

were

the

to

ening views of the national trend

expectations

cash income and

whole.

course

when orators give us

time

one

inter¬

of

expenditures point to

as a

be

can

of

course

present

to farm

as

of

of

That you may

enough to provide the margin in
of prosperity consumption
that characterized the industry up

where the defense program is expected to taper off.
This question
tioning comes also at a political

Pros-

area

terms

namely, the

sales.

.^

its

York

in

in

American

no

his right mind wants one — will
level off in a year or two and
go

pin-pointed

gross

be

New

is

-questioning

*

materializes
the

crease

Our

will

$350,000,000,000
about

operation

profitable

American

of

Americans have to

we

our

in

pect

and

There

In private

ca-

excess

a rising popu- the national economy, agricultural
° ^6P the .T 'and industrial, beyond the point

y
yea^I

i

est,

knows it.

+

™

'

and

farms

on

tfnnal

a

sight

in

not

are

io+i™

for

supplies at prices in line with
stable

Louis H. Bean

manganese,

power '

a

envision five years ago, is still not

Effect of Tapering Off of
Defense Outlays

j

have

capacity, so much greater than
what industry spokesmen could*

:

•

pur-

cities

in

chro¬

70% of its bauxite (for aluminum)

of

chasing

of

100 %•

of

rubber,

high

a

now

we

population, normal peacetime consumption would be about
110
million tons.
The present

ment,-, easier .'-out. in short order,

credit,

full ownership, or have gone
into the more plentiful and more
rewarding industrial occupations,

9r

by

With 157 million persons

person.

course, inconceivable that
agreement will not be worked

an

the
steel

in

it may

industry might

creasingly dependent upon foreign
resources of
iron ore and petro¬

given

encouragement

consumption calls
1,400 lbs. for 1952, or 0.7 tons

of supplies, and employment.-

ume

somewhat bom-

that with the sub-

business firms in operation today.
At the latest count for 1951 there

that

busi-/It.is; of

the. United

owner-oper-

mercial enterprise, note the longtime
trend
in
the
number
of

in

that analysts also have
of judging with any cer/
steel

-

plies,

pansion

for

have a basis for judging whether
this figure is too much or too
little for the longtime view, note

election

now

to in terms of-wages,

-

rapidly exhausting even

much too

farms

ated fell from 75% to 58%. It has
capital now been restored to about 75%,

by the end of 1953.

;

and

national

see

government

what the current impasse

the

in

of

account,

with

November.

pro- / no

g r a m,

into

commitments
outcome

the

industrial'output

over

taken

are

expenditures

In the first place, although we
produce

proportion of

ques-

parity
approaching 110 million
ingot tons, and a promise of more
*

for

Government.

world's

stantial

■

lifting power
of government"

drawal from this field of the Fed¬

,

outlet

of steel it is

forting to

Up to the night of April 8, when which
economic
analysts
have
the government temporarily took v
recently ' been fitting the multiover the steel
industry, there was tude of details. In doing so, no
fairly common agreement that the new : international developments

—aside from the substantial with¬

eral

the

to

as

case

•

4% to 5%

with an increase in consumer spending of $10
Says indications are for stable level of living costs,

,

portant

$340 billion, agricultural

further expansion of from

a

barring international complications. Holds, even with tapering
off of defense program, growth in
capital outlays is not excessive

Should

Business

Invest Abroad

the

expenditures, and the market for as tenant farmers have gone up
basic items as Steel. In the the agricultural ladder into part

-

next year,

/billion.

Just

drop in the bucket!

}

concern

maintain

such

000,000 and has just succeeded in

and

tion

de¬

velopment plan calling for $1,300,borrowing

was
dramatically reversed
immediately after 1932. Expressed
over our
in ownership terms, in the 50
pre-1929 years between 1880 and 1930, the

beyond, there is always the

By LOUIS H. BEAN*
Office of the Secretary of Agriculture

to

stead it

rate of growth into the-1950's and
•

the

10-year

areas

a

ability

In Years Ahead

in prospect is ap¬

now

19

J

f

20

The Commercial and Financial Chronicle

(1612)

electricity,
1951, with

Missouri Brevities

i
President Jay
Kansas

Stockyards

City

1951.

B. Dillingham of

Co.

$500,000

Earnings from the Schutter

Candy Division likewise show an

has

recapitalization

increase.

will become effective
April 24. The plan calls for the
exchange of new 5%, 40-year inicome debenture notes for the 47,-

In the

the

announced

i

"

program

When

V

i

the

the

other contracts

offering

tiated.

the inten¬

stock

excluded

tablished

The

is

that

$4,739,000.

could

1957.

■

*

The

begins in

'

.

*

it

as

for

its

due

to

unable

was

from

its

to

supplier

cents

per

fore, 887,747 shares of the cor¬
poration's common continue to be
represented by the voting trustees.
■,.*

equal
share

common

as

;

*

earnings well above the 1950 total,

partly reflecting operations of a
new subsidiary, were revealed in
Bryson, Inc.
Net sales

were

com¬

of the Zenite Metals

corporation,
the new subsidiary, the volume
amounted to $23,478,801, up 34.4%
over the previous year.

com¬

Net

income

totaled

current fiscal year sales amounted

$1,537,957,
compared with $1,232,086. Exclu¬
sive of the
Zenite
corporation,
earnings
were
$1,371,514,
up

to

11.3%.

,

pared with 66 cents in the previ¬
ous comparable
quarter.
For the first six months of the

$2,485,825, compared with $2,After
Cost of sales was $1,preferred dividend re¬
601,818, against $1,641,366. Income quirements
the
earnings
were
taxes amounted to $342,400,
against equal to $3.11 a share on the out¬
$375,254.
Net
earnings for the standing 479,962 shares of com¬
six-month
period
aggregated mon, compared with $3.28 a share
P"*'* 619, or 81 cents a common on the 359,962 shares of common
svr n, as compared with
$428,302, outstanding a year before.
or $1.07 a
share, a year earlier.
From the sale of 120,000 shares
650,748.

The company expects a marked

improvement in the
ter

ending June 30,

materials

of common,

current quar¬
as

sufficient

hand to complete
the scheduled run of the
14-foot,

dicates

volume

a

well

above

Universal

*

the
on

Aaron

Corporation

Fischer,

President, at
stockholder's meeting

annual

1

April 9.

i-I'Mr. Fischer declared that

the

Gas

merged with

was

Missouri Public Service December
31

and, since the shareholders

the

same

result of

as

are

exchange

an

of

stock, the operations were com¬
bined, R. J. Green, President, an¬

first quarter of

St.

Joseph

♦

*

Light

and

Power

Company asked the Missouri Pub¬
lic

Service

Commission

sell

to

for

au¬

$100

additional

5,000

The utility told the Commission
the proceeds would
be used to
000 spent recently to retire first
mortgage bonds and the balance

same

to

stock

common

totaling $598,489.

of

,

the

shares there will be

17,553 shares out of

5,000

outstanding

creases

indebtedness

were

'

*

of

and

in

sales

.

,

offered

J. Bond Club to

Hold

Spring Outing

Teletype




St. Louis

*

•

-

Com. & Pfd.

its

the

serial

of

pre¬

are

Machine

of

New

Britain

Company subscribed for

69,351 of the total of 70,000 shares
Gf

were

common

stock

offered

through

rights.

The rights, which expired
Feb. 29, were for one new share

*

*

Stockholders

v

annual

report

for

1951,

TonftA««0A PriftllllAf'lft

I eOHeSSee rfPfillCX II

all-time

an

000,

high in sales of $9,565,38% increase over 1950. Net

a

after

taxes

at

equal to $2.58

66%

a

share,

a

rate

OIL

tlOIMItOH! dlfti UllfirGu

was

14% in-

a

Stone & Webster Securities
Corp. and White, Weld & Co.
jointly headed an investment
group which on_ April 15 offered

the previous year. The

crease over

reduced rate and that

a

somewhat

a

1952 may

to the public 1,250,000 shares of $5

lesser sales level for

be indicated.
*

val"e common stock of Ten-

Par

Production Co.,

nessee

*

*

..

.

' of

_

Tennessee

Gas

a

subsidiary

Transmission

and

The stock

iced at $12

was

oWp

nPr

$798,000 from $762,000 in 1950

»

Procee<*s to the company from
the sale of common stock will be
to re.Pf
nik loans and the
balance will be added to the general *u_n<*s °| the company. The

net

general

funds,

and

funds

from

operations, will be used m the
shares the net per share was $0.55
exploration and development of
against $1.52 a year earlier. Sale the company s oil and natural gas
of new stock during the year improperties and may be used for
proved the working capital posi- the acquisition and development
tion materially and the equity of °* additional properties.
In pethe common increased from $0.52 cember, 1951, the company purto $3.36 a share.
'
chased interests in oil and gas pro-

of

sales

*

1951,

up

before

ducing

*

properties

in

Arkansas,

net

and

before

share

taxes

$3.09

per

Working capital at the year end
was $14,176,000,
of which inventories at lower of cost

will

hold

its

ing June 20

annual

at

the

,/Tennessee Production Cq. since
1933 has been principally engaged
in the acquisition of producing oil
and gas properties and in the pro-

compared to $1.77 in

Spring out-Rock

Spring

Club at West Orange, N. J., ac¬
cording to an announcement by
Harry D. Miller, Nugent & Igoe,

auction

>

the

securities

J. J.

*

On

,i

opened

a

business.-

new

*

•

or

is not engaged

retail marketing,
*

it

*

*

.5%; debentures,., due

May

1962, and one-fifth, share of
"}U

Bregy, Feairheller With
r

t

.

n

D

o

,

n

\

%

r rancis I. Uu Font & Lo.
CHICAGO, 111.—Eustach Bregy

1,

com-

-nU

-We maintain m'x'm^ary markets in:
't?ir

I

CONNECTICUT
CONNECTICUT

LIGHT

CONNECTICUT

&

SECURITIES

POWER

POWER

—

*

:

_

NEW

•

these
.

and

other

HAVEN

•

Connecticut

.\.j

,.'

ILLUMINATING
GAS

HARTFORD

available

Descriptive memoranda
on

UNITED

•

HARTFORD ELECTRIC LIGHT

on

LIGHT
GAS

request

companies.
"'y

"

CHAS. W. SCRANTOK 6- CO.
MEMBERS

office

Building under

Krug'was formerly with R.

H. Johnson & Co.

company

du Pont & Co., 208 South La Salle
Street. Mr. Bregy was formerly
with Faroll & Company.
'
'

of

t

the direction of William H. Krug.
fvfrr

The

in refining

presses

and Edgar C. Feairheller have become
associated
with Francis I.

F.

has

duction of, and exploration for, oil
and gas in the Texas Gulf Coast
area.

ma-

April 22, .stockholders of
Semler* Inc. will meet to
on
a
proposed merger into

B.

t' WASHINGTON,1 D. ;C.—Brady
Co.

surplus

,of Semler for $3 principal amount

Brady & Co. Opens
Washington Branch
&

its

J. B. Williams Company. The plan
calls for exchange of each share

Fitzgerald, Pres¬

in the Union Trust

of

some

grinders.;

v

R.

Trinity Securities Corp. will be
formed shortly with offices at 61
Broadway, New York City, to en¬
are

market

or

.

chinery, including lathes,
and

1950.

$11,983,000.
In
company sold qt public

March the

vote

in

/for

accounted

Fitzgerald, Secretary;
Jeanne Fitzgerald, Vice-President.
Mr. Fitzgerald was formerly an
officer of Cantor, Fitzgerald & Co.

*

was

in

? u.ary °? thls ye.ar ,o£ /°ut~
standing common stock of York &
Harper Inc., owner of substantial
oil-producing properties and nonPT u,c,ln®. Pr0Perties in Texas and
Wew Mexico«

level, improved profit marclosing up of the unprofitable Corbin Screw Division,
gins

ident;

123;

5?!?rsi?pihandthTexas
f°llowed |?y the acquisition

Hard-

were
$27,602,000 in
from $21,849,000 the year
As a result of the higher

;

D.

American

sales

Officers

Garfield 0225

of

Corp.

ware

gage

Exchange

.

new

for each two owned at $20 a share.
In

Quoted

2, Moj

of

rights
Com-

shares

remaining

*

Trinity Securities

Landreth Building

SL 45*,,,-—

The

authorization

outstanding from 29,333 to 89,333

.

SCHERCK, RICHTER COMPANY

:

shares

through

income
was
$102,000
$98,000 the year before,
to stockholders, 74,952 shares were Due to a change in the preferred
purchased upon exercise of war¬ outstanding from a $1.25 particirants and the rest were taken by pating to a $1.50 nonparticipating
underwriters for reoffering.
and an increase in the common
were

President of the Club.

Wagner Electric

Bell

for

There

against

Company which

The Bond Club of New Jersey

Stix Baer & Fuller
Dry Goods Com.

-

and three-eighths

common.

shares of

Gas

for

St. Louis Union Trust

Stock

1.56
pre¬

y

*

To Be Formed in NYC

Moloney Electric Class "A"V.,-

Midwest

calls

Co.

*

I.

—

44,000

marketed by the underwriters.

_

the

Mercantile Trust

Sold

par,

of

into

presently out¬
standing 36,418 shares of 7% pre¬

Bridgeport Hydraulic
41,938 were subscribed for
the

$100

of present 7%

cumulative

4^%

100,000

pany,

and

to vote
issue pf

preferred

ferred.

to

*

,

*

V.

Scruggs-Vandervoort-Barney

plan

Of the 77,355 shares of common
stock of Kansas-Nebraska Natural

National Oats

Member

by

of

share

a

23

new

a

preferred and reclassifica¬

ferred

1 for 7 %

a

April

of each share

shares

Operating revenues of Greenwich Gas Company m 1951 rose

Harry D. Miller

-shown

Industries

total

authorized

an

issue of 25,000 shares.

capital expenditures.
r *

on

for

noncallable

of

'

•

ferred.

offered

duced at

issuance

company at $13.50 per share.
net proceeds are to be used

reduce

serial

ing May 13.

the

t.

stockholders of
Typewriter Company has

called

tion

two-week period end¬

a

plan .this

of

the creation of

on

report indicated that products for
plant additions national defense are
being pro-

would be used for

After

owners

re¬

Williams
>

meeting

been

Whitney Blake Company reported

share.

a

common

of

the

on

,•!'

A

*

*

hoped to offer the stock

basis for

shares of class A preferred stock
at not less than the par value of

($100 per
shares of no

First National Bank

—

to

It is

vote

month.

yarn.

common

par

Ely Walker Dry Goods Com. & Pfds.

Bought

val.

Of
*

only

value

Stockholders
also

July 1 and will

Bridgeport Brass Company has

■

nounced.

pre¬

Missouri Utilities Company, in
jthe normal tax rate amounts to
(approximately 90 cents per share. its annual pamphlet report to
■j*f Match orders are far ahead of stockholders, said substantial in¬

Olin

Bedford, Mass. The spinning plant
produce

presently

*

Co., Springfield, at
share) and 10,000

The

jestimated profit for the quarter,
!based on present figures, exceeds
$500,000, which after reserve for

jthe total for the

Missouri

1,620
shares
of
4Y4% cumulative preferred stock,
series E. of Springfield City Water

par

New

be fixed and submitted for appro¬

on April
publicly to residents of

offered

Missouri

enjoyed a record first quarter in
4952, according to a report made
by

Com¬

Service

Moody Investment Co.

$2

*

Match

♦

will

Net

;
#

25,000 shares of

♦

solidating

will reopen about

No change

the

Connecticut General would be
tired.

its operations at

in

made

outstanding stock of Williams, but
$100,000 of debentures held by

part

as

be

the

Missouri Gas & filed a new issue of 125,732 shares
Electric
Service
Company,
re¬ of $50 par cumulative convertible
ported combined 1951 net income preferred stock with the SEC. A
of $912,177, equal to $1.56 a share stockholders'
meeting has been
on
the common stock, compared called for April 28, at which time
dividend
with $953,839, or $1.71 a share, in the
rate,
conversion
basis and subscription price will
1950.

$5,819,722. Net working
capital was $11,006,705, an in¬
crease of $2,522,552.

already has been sold, which in¬

would

including

pany was

self-propelled combines. The full
production for the current quarter

million.

Public

Missouri
pany,

ferred and $2 million of notes, the
net amount received by the com¬

are on

recently closed

was

of J. B. Williams.

mon

of the company's program of con¬

•

reimburse the treasury for $139,-'

$29,908,876,

plant

outlay of $850,000.

thority

high sales in 1951, and

pared with $17,464,226. Exclusive

44

to

♦

before.

the

There¬

the exchange was 235,665.

&

315,012, compared with $1,593,794
a year earlier.
Net income in the
was

certifiers for

the

of

the annual report of Black, Sivalls

this
reason,
sales in the three
months ended March 31 were $1,-

period

have

value)

par

their

shares

actual

Record

self-propelled combines
shortage of copper. For

recent

surrendered

Corp.

obliged to virtually suspend
operations from mid-February to
early April

($7.50

a year

spent $752,000 to

transmission and
distribution
systems. - It
added
1,525 new customers. The 1952
construction budget calls for an
strengthen

trust certifi¬

95,699 shares of common
of Pickering Lumber Cor¬

•

was

obtain radiators

of voting

*

Harvester

Gleaner

*

cates for

be

sinking

A

fund for the debentures

ago.

*

share,

a

The company

Alexander, Inc. an¬
spinning works
in Danielson to R. W. Gould, the
company's purchasing agent. The
sale of its

nounce

Royal

corporation.
amount The number of shares eligible for

maximum

debenture notes

issued

one year

Holders

At the present time there are
outstanding 47,390 shares of pre¬
ferred.

$1.44

or

Powdrel! &

,

officers, was es¬

*

1, 1951, to May 1, 1952, will stock
poration
paid in full May 1, he said.

of

;

4

option for key

option plan for employees,

which

Nov.
be

:

<

proved overwhelmingly. The first

debentures from

on

'

employees, previously voted by
the Board of Directors, was ap¬

18,950 shares of preferred
had been deposited. The company
rannounced that 25,308 shares al;ready have been deposited.
The effective date of the plan
was
extended in order to permit
; those
who had not yet made a
decision to do so, Mr. Dillingham
Interest

being nego¬

now

stock

second

A

plan operative

J after

said.

has a backlog of
in government work
hand, with substantial

already on

was

the

make

greater scale and

a

company

$12,000,000

■

exchange

first made it

was

sion to

•

•

on

re¬

Mr. Fischer declared that

erated.

outstand¬
$100 par value preferred
».!•.:•

is

search

Division,

previous

the

over

Total revenues were $4,521,863, against $4,025,923. Net income
was
$499,016, equal to $1.62 a
common
share, against $443,632,

Thursday, April 17, 1952

.

Connecticut Brevities

revenues

year.

production is being rapidly accel¬

shares of presently

390

ing 5%,
«stock.

Armament

and water during
up
nearly

gas

.

.

1: j.;

NEW

NEW

HAVEN

New Yorfr: REctor.2-9377

■

Z
YORK

STOCK

EXCHAN*
EXCHANGE

Telephone 6-0171
Teletype: NH 194

Hartford 7-2669

Volume 175

Number 5108

Continued jrom page

..

.

The Commercial and Financial Chronicle

21

(1613)

tials

it

make

impossible for the industry can handle all threats
goods in our of further inflation short of allmarkets, as is increas¬ out war. Popular opinion to the
ingly becoming the case even at contrary, we have not succeeded,
current price levels, a further in¬ in creating a deflation-proof, de¬
Bache &. Co., 36 Wall Street,
crease
of prices can only bring pression-proof economy. We are
New York City, members of the
deflation.
< not in a new era of perpetual in¬
New* York Stock Exchange, have
All of us wish to see the stand¬ flation and boom!

15

E. Bales McKee Is

workers to sell their

domestic

Will Wage Increases
Now Be
.

*

r

'•

the
economy of the defense effort will
have-passed. Short of all-out war,
or the belief of our military lead¬
all-out

.that the

ers

,

on

is ; very

war

living of our citizens in¬
little surprising that
crease but certainly not to see one,
everyone
accepts the' spiral of
major segment of the population
wage increases as continuously in¬
•attempt to prof it, at the. expense
flationary; Of - course, - wage in¬ "of anoiher
major segment. As. a!
creases were inflationary
in the matter of
fact, the. very attempt,
1945-1948 period 'when the' un¬
to raise, dollar wages foster than
precedented pent-up demand made
the productivity,; of the workers
it possible to pass-along - higherin. a real economic sense. will re¬
costs of all types in higher prices.
sult in very ' strong deflationary
.Businessmen came to accept this
forces. From now on all groups,
as
normal -economics. However,
those receiving the wage increases
such a period of a seller'sj market
not; tied to, real productivity in¬
is in reality a -rare phenomenon.
creases
as well as those not
reWhile there has been h great hue
ceving increases in income, will
and cry about the shortage of ma¬
suffer.
terials keeping production way
If, on the other hand, wage in¬
below demand in the fields of
creases are deducted from profits,
housing, automobiles, and other
this
is
also
deflationary.
The
durable goods, in late 1951 and
boom has largely been based on
1952 an unbiased observer could
the expansion of capital goods in¬
see that the facts are otherwise.
dustries and these have largely
It has actually proved quite dif¬
been financed out of the profits
ficult, if not in fact impossible, of American
business, The quick¬
to move the tremendous (by all
est way to
shrink the capital
but
1950
standards) out-put of
goods boom, which in effect is the
consumer
durables produced in
boom, is to shrink profits. This
the last quarter of 1951 and the
will reduce both the ability as
first quarter of 1952—at existing
well as the incentive to build ad¬
price levels. My close association ditional
plants and equipment.

tor jri our economy, just as the de-

maqd for, consumer goods cannot
keep a boom at. the 1945-1950
level V going without an accom¬
panying strong demand for capital
goods., Once the armament, plants
ere built why cannot production

„

.

the

of

weapons

boom going? This
out the pressure

.

keep our super
is because with¬
of all-out war,

and with new ideas for new weap¬

being developed all the time,
hardly seems likely that the
military men are going to commit
themselves to mass production of
ons

it

for storage which can
be just as obsolete on "M" day of
World War III, as the World War
weapons

IL weapons

are

As Defense

now.

Mobilizer Wilson told the aircraft

time

the

industry,

had

not

oc¬

curred for the freezing of military

with the

He said, "I, for one,
would hate to stifle the wonderful

designs.

inventiveness

mobile

speak

engi¬

retail end of the auto¬

business

leads

considerably

with

me

to

more

than
theoretical
knowledge on
who- espe¬
this point. We have been running
cially in a period like this burst into
very considerable consumer
with new and brilliant ideas."
price resistance in almost all lines
But the incorporation of these new
for many months, and the situa¬
and brillian t ideas involves endless
tion is not improving. The ghosts
interruptions in the assembly line of 1920 and 1921
may be walking
process. That precludes mass pro¬
again. How any practical person
duction of planes, tanks, ships
can
believe that wage increases
and guns.
which cause price increases in the
■■■■■>The Pentagon wants to have un¬ durable goods field can be any¬
limited appropriations for defense thing but deflationary, except in
but it is still professionally ad¬ the
very limited field of govern¬
verse to spending huge sums and ment procurement, is hard to un¬
giving large orders for weapons derstand unless they close their
that.it knows are not as good as eyes to all the objective facts.

and

neers

'

American

of

others

craftsmen,

already
on

undergoing tests,
drawing

the

board.

Even in World War II, with fight¬

ity to the thesis that further wage
the globe increases would be
inflationary.
American Even
then, however, some argu¬
business found it hard to get quan¬
ments against the thesis could be
tity orders and therefore mass- presented but it is not necessary

ing forces all around
crying
for
weapons,

production fropj the military.

to

do

so

at this

time for

no

one

The,. inflationary
post-World purports to believe that such an
an un¬ over-all
equal increase in con¬
precedented expansion of plants sumer income is likely or even
and equipment to produce civilian
possible. Therefore the whole in¬
goods. Since the outbreak* of war flationary argument collapses.
in Korea we have been building a
Consumer Resistance
wartime plant on top of our ci¬
•

Industrial

Output to

Bankers Offer Bonds

Of Cosumers Power Co.

been able to meet all the demands
con¬

goods but has been able to
build up enormous inventories in
almost every direction*
At the
same time during 1951
that pro¬
sumer

ductive machine

able to take

was

of a 100% increase in defense
spending and to add further pro¬
ductive potentials for the future
care

in

the

form

of

arid
exceeding

plants

new

machinery

on a scale
the high rate for 1950. Later
in
1952
we
must
expect

E.

of

,

War II boom was based on

even

tion

rather

than

increase

an

in

inventory, plus the declining rate
of business expenditures for capi¬
tal
goods
and
plants,
should
introduce
a
moderate
though
accelerated

production,
continue at

decline
a

in

industrial

decline which should

sharper pace
in 1953 and 1954. The longest and
greatest boom period in American
history may well have passed its
an

Mc.K

been

h

ee

as

part¬
ner, of Richard

and The First Boston- Corp; on
April 10 offered for public sale
$25,000,000 of Consumers Power
Co.
new - first
mortgage bonds,
3Vi% series due 1987, at 102.973%,

W. -Clarke

plus accured interest to yield

proximately
The

issue

ap¬

to maturity.
awarded at com¬

3.11%

was

petitive sale on April 9 on

bid

a

.a

officer

;

*a»

and

director of its
a

f f i 1 i

a

Richard,

t e,
W.

Clarke Corpo-r

ration, since
1949.
He

C. Bates McKee

an

was

officer
The proceeds of the sale will be

,&

Co, ; and

of 102.389.

the

of

Bank's Paris office
after which he
returned to N. Y. to join the City
Bank Farmers Trust Co.
He is a
mately $53,000,000 in the current
graduate Of St. Paul's School, Yale
year.
The major projects include
and Cambridge University, Eng¬
used in connection with the com¬

National City

1929 to 1932,

from

pany's construction program on
which it plans to spend approxi¬

construction of the

new

Justin R.

Whiting steam-electric generating
plant with
of

two

initial installation

an

units scheduled for

land.

'

During World War II he served
with the United States Navy.

com¬

Later this year,

Mr.^ McKee will
Paris.

pletion in 1952 of 85,000 kilowatts
take up his residence in
capacity each, and the addition

plant of a seventh
135,000 kilowatts.

The

unit

Wm. Saunders V.-P.

of

bonds are redeemable
of the company at
prices ranging from 105.973% if
redeemed during the 12 months
,

Of A. G. Becker Go.

new

the option

at

ending Mar. 31, 1953, to the prin¬
cipal

amount

Mar.

31,

if redeemed after
1986.
Annual sinking

fund

payments are required begin¬
ning in 1956 and sinking fund
redemption
prices
range
from
102.7722%
to
the
principal
amount.
The

111.—A. G. Becker
Incorporated, 120 South
La Salle Street, members of the
New York Stock Exchange and
other leading exchanges, an¬
nounced that William L. Saunders
has been elected a Vice President
CHICAGO,

&

Co.

of the company.

Slay ton Co. Adds

*

;

(Special

to

Financial

Chronicle)

(Special

to The Financial

Chronicle)

The

peak and the tremendous and still

company

distribution

and

natural

sale* of

in 265 communities. The pop¬
ulation
of the
territory served

"

gas

is

approximately 3,000,000.

*

•

•

•

.;

;

'

'

.if.!-."

',} )•;/!

With Stepheftsott,

v a ci

Leydecker & Company

even

(Special to Tux Financial chronicle)

LINCOLN,
with

Neb.—Max Wall

tinental National Bank Building.

Thomson & McKinnon Add
'

(Special to The Financial

CHARLOTTE,

N.

Chronicle)

C.—Dean

or as an

offer

f

,

$15,000,000

.

Ralston Purina Company
Sinking Fund Debentures

,

,

and

smoothly into

may

for
•

one super

boom States,but-has.already caused the

l^C,ta>Yeiy^ costly mistakes

.businpfesmen

investors cept, where we are directly, or
alike.
.J
indirectly, •. giving our products
.The third* major factor in infla¬ -away. Aswecontinue to export
tion psychology rthat: is "currently -our machinery, or in other ways
receiving-.most.^attention is the enable foreign countries to build
wage; disputein the steel industry. up the production of their work¬
About everyone expects that when ers, we will find that the major
the results are - finally announced difference in their products and
the workers will-have a "substan¬ ours Will be prices based on our
tial wage increase which is ..ac¬ constantly; rising .wage" rate.
It
cepted as inflationary^ because it may be possible to explain
aw^y
is
.

and.

Price 100.43% and accrued interest

loss of sizable foreign markets, ex¬

•

-

Copies off the Prospectus
announcement is

-

the

undersigned,

may

be obtained in

any

State in which this

circulatedfrom only such of the underwriters, including
as

may

legally offer these securities in such State.

^

.

.

-

clear, that

as

in the

1946-1951

arguments; to j ustity;
period,- prices Will also rise sub¬
:these differentials in " world mar¬
stantially following-a new round
increases^ -




v

-*

.and

«

.<*<**■ kets.-

Goldman,: Sachs & Co.

Kidder, Peabody & Co.

gjve

April 17,105?*

'

S.

OAKLAND, Calif. — Jean M.
Hasbrouck has joined the staff of
Chappie is now with Stephenson,
Leydecker & Co., 1404 Franklin Thomson & McKinnon, Johnston
Street.
Building.

■

f

is

Waddell & Reed, Inc., Con¬

It is becoming increasingly dif¬ expanding capacity of American
plant, and this is giving us
our super boom, not the produc¬
ficult for large segments of the
tion of weapons of war.h
population to purchase the goods
produced
by
members
of
the
Lessening of World Tensions
This announcement is under no circumstances to be construed as an offering of these securities for sale,
strongest unions, and yet the con¬
to buy, or as a solicitation of an offer to buy, any of such securities. These securities
Furthermore, while it may ap¬ tinued high rate of production of
V
are being offered only by means of the Prospectus.
pear unlikely
that the interna¬ these strong unions must be based
tional tensions will ease, with re¬ on sales to the mass markets. The
NEW ISSUE
sulting decreases in demand of number
of
consumers
being
military goods, it cannot be said squeezed by the decline in the,
that such a thing is impossible. At
purchasing power of the dollar
this time the possibility of a Unit¬ has been
steadily rising for sev¬
ed Germany, and the resulting eral
years. If it was not for the
body blow to a Western European subsidization of housing by the
defense bloc, and also of peace in FHA and
VA
these
industries
Korea, while perhaps ; not very would have long since been un¬
great, certainly must be consid¬ able to sell their, products to the
ered for its effect on the ^defense
average
American worker. The
3l/s%
effort as well as inflation psychol¬ current demand situation in hous¬
ogy* if it should occur. The con¬ ing clearly/reflects this
problem.
Due April 15, 1977
tinued hope or fear/of < inflation This Constant
increase in cost of
which depends on the
defense American business, when it results
program -or a higher public works in
higher prices, not only shrinks
program- to be integrated, quickly the markets within
the United

vilian

.

:

.

general

An underwriting group headed
by Harriman Ripley & Co., Inc.,
1

ing
early 1951 the American
productive machine has not only

admission

partnership, in
the/film. ,Mr*:

to the John C. Weadock generat¬

Decline

Since

for durable and non-durable

to

the

McKee

.

is engaged, en¬
ST. LOUIS, Mo.—w. F. Boron
tirely in the state of Michigan, in
increasing
consumer
resistance the generation and purchase of cherding is with Slayton & Com¬
If all consumers were to rer
2;
showing up in the automobile, electricity and its distribution and pany, Inc., 408 Olive Street.
ceive equivalent increases in in¬
home-building, and other civilian sale in 1,461 communities and
come, there would be some valid¬ lines.
The pressure for a reduc¬ townships, and in the purchase,
Joins Waddell & Reed

and still less effective than future

models

Bates

a

,

neve£ be a. major inflationary fac¬

announced

ard of

It "is

ifliminent, .the demand, for the end
products, the;weapons of war,.will

..

.

u '

built the major impact

are

PartnerinBache Go.

.

-

..

-

"However,*if these differeh-*
.■{

tu

i

.,hi

i ft

\ 11 i » l-i i

*'* ; 1!

«

The Commercial .and, Financial Chronicle

Continued

In talk

1L

Pacific agreed that this must be done if

address before the

an

Conference

Northwest

Natural Gas

head advocates using trust funds and nonbank
Warns of inflationary implications of defense pro¬
gram and projected deficit financing.

sources.

In

Under Secretary Foley,

West Coast, delivered by

on

Treasury

Bank¬

on

ing at the State College, Pullman,
Wash, on April 11, delivered for
him
by Unf

der-Secretary

:r<

r«.

the

of

Treas¬

Edward

ury

F

H.

1

o

e

y,

Treasury Sec¬

John

retary
W.

Snyder

predicted
sizable

a

Fed¬

to avoid

are

we

inflationary

pres¬

which would result from fi¬

sures

nancing the entire deficit through
the banking system. In this con¬
nection I should like to empha¬

of

hundreds

fail

who

tors

independent

amounts spent

regulated.
But
that
would not find the gas for them—
it would only slow down the rate

The

opera¬

Now there

promoters attempting to get rich
out of oil. Their explorations are

ple who

while

that

there

appears

like to

regulation of gas
consumers

see

1952,

be

would

It

gas.

Fed¬

northern
pro¬

to

appear

simple thing for the FPC to

a

to the gas producers: "You
only earn 6% on the original

say
can

budget

deficit

and

in

connection
to

it did to the

sources—as

The economics for producers is
us not long
through the banking system. The ago that the Treasury could easily ; entirely different from that of
Six percent on original
portion of Secretary Snyder's talk sell an additional $10 billion in utilities.
dealing with these subjects, fol-( government securities each year cost of property would be ridicu¬
lows:
to non-bank investors by 'sweet¬ lous for small producers search¬
"With

respect

policies,

it

and

nue

rather

sources

to

domestic

our

requires

than

sound

reve¬

expenditure programs,
within the framework

operating

oil and by Dr. Lahee's
on Series ing for
careful
figures three-fourths of
by offering an espe¬
the rank wildcats are drilled by
cially attractive security for in-T
And 6% also is
stitutional investors.
That in it¬ small producers.

ening' the interest rate
E bonds and

budget policy which

self

is

The

Treasury's ability to

tions.

from

Federal

It

requires

.

gentleman who wrote

is appropriate to economic condi¬

a

far

the

from

non-bank

whole

story.

borrow

untenable

to

large producers.

the

Since

FPC

has

would appear to be a windfall for
the consumer. But would it?

affect the residential
•

North but slightly.

the

reduction

it
in

sumption
to $1.26

enough

to

agement

tional

natural

gas

tention

to

greater

efficiency and

policy

which

acts

to

counter any pronounced inflation¬
ary

deflationary

or

pressures;

which provides securities to meet
the current needs of various in¬
vestor groups, and
in maintaining an

which succeeds

orderly situa¬

tion
in
the
public market for
United States Government securi¬

ties.

It

requires the

of

use

debt

management

policy cooperatively
monetary credit policy to

with

contribute

toward

healthy

eco¬

nomic growth and reasonable sta¬

bility in the value of the dollar.
It requires the conduct of
day-to¬
day

financial

Treasury in
ducive

to

sound

operations

the

in

financial

the

of

govern¬

markets.

And,

finally, in the international
it

con¬

maintenance

conditions

ment's

the

of

most

manner

a

area,

requires

management of the
international monetary

country's
relations

with

the

aim

of

main-'

taining a sound currency domes¬
tically and internationally, and
promoting a better trade and ex¬
change
situation
with
friendly
countries.
"In the light of these
responsi¬
and
these
objectives, I

bilities
should

like

to

take

up

a

very

practical financing problem which

currently faces,

financing of

and that is the

us

substantial budget

a

deficit.
"As most of you
probably know,

last June marked
my fifth year

Secretary of the Treasury.

I

as

am

proud of the fact that in
those five years we were able to
show an over-all
budget

very

surplus
of close to $8
billion, and by using
that surplus, plus excess funds re¬
maining in the cash' balance at
the end

of

ing,

were

we

total

World

War

able

public

debt

to

II

financ¬

reduce

by

$15

billion.

Since last June,
however,
heavy defense expenditures have

forced

us

"Some

into deficit

of

the

rowing which
can

be

vestment
in

we

taken

of

trust

major

portion

of

by the in¬

fund

accounts

securities.

must

be

But

a

financed

by borrowing from the public.
"Sound
tates that
this

debt
as

public

non-bank

management
as

sources.

be

from

It is generally




indi¬

possible,

panies have refused to sell gas in
any substantial quantities to
in¬

gas

reduce

the

for home

con¬

Milwaukee,

for

ex¬

approximately $1.30
Mcf, i.e., by 3%—not
matter, if he prefers
fuel. But the reduc¬

ample, from

tion

per

from

8c

would

4c

to

be

United

supplies

of

the

next

the

foreseeable

that

tives,

practice

transmission

of

line

cient
of

to

earn

return

on

an

allowable

cost—6%

and

few

that

the

and

not only

gas

but

years

future,

for

provided

economic

incen¬

materials,

climate for

vestment

and

private

a

in¬

prevail.

"The major threat to future oil

supplies

would

with

ence

which

be

interfere

any

economic

incentives

might act to prevent the
development which would

normal

otherwise

occur."

Conclusion
There

be

can

supply of nat¬

a

ural gas in this country sufficient
to meet the needs of the rapidly

increasing

demand, provided the

producers

gas

for

ation is

new

encouraged

are

to

Explor¬

reserves.

expensive and hazard¬

an

ous

undertaking that must be paid

for

out

ducer
will

of

is

production.

entitled

induce

ploring.

him

to

The

pro¬

profits

to

Without

there

ment

that

continue

of

gas

would

induce¬
further

no

soon

be

to

see

that

sup¬

diminish.

Hence, it is to the consumer's
interest

ex¬

such
be

would

exploration and the available
ply

the

own

producer

accorded

sufficient profit and
freedom of action to stimulate him
to continue

of

exploring for

new re¬

natural gas.

Deposits of New York
Slate

rate

is allowed

transmission-companies.

oil

adequate

favorable

a

regulation, it would result in set¬
ting field prices at levels suffi¬

Certain

increasing

upon

reasonable

serves

the

Gds
com¬

of

States

count

can

producer. If
regulation should follow

Federal

a

Gas."

and

conclusions

for

serious matter to the

,

Savings Banks

Continue Upward

This

would produce different prices in
oil production
might be
simply by cutting lated,
Savings bank deposits in New
This holding back of sup¬ the same field, depending upon York State were
Government expenditures to the next.
up $72,214,000 for
plies in itself has already made varying costs of the several pro¬ March—the largest gain for that
point where they would equal
revenues.
It
sounds
gas less available and more ex¬ ducers, and would upset the ex¬ month since
good
in
1946, reports Earl B.
And the isting regulation of the State Con¬ Sch wulst,
theory, but here are some salient pensive to consumers.
servation Commissions.
It would
facts which do not make whole¬ threat of regulation retards ex¬
President of
no doubt require the obtaining of
sale
expenditure slashing very ploration for additional supplies.'
the
Savings
approval on
locations
to
drill, Banks
practical from a national security
There is an important and rap¬
Associ¬
countless forms, reports, investi¬
standpoint.
More
than
three- idly growing use of natural gas
ation
of
the
gations,' hearings.;and directives.
fourths of total budget expendi¬ near the
State of New
gas fields of the Gulf
It would force small producers to
tures in 1953 will be for major Coast
by
chemical
companies
York, apd of
quit the business and large pro¬
national security programs such: which need
the
gas as raw material
Bowery
ducers to sell to chemical or other
as military
services, international for making plastics and innumer¬
Savings Bank.
industries locally.
It would re¬
security
and
foreign
relations, able other products. Such impor¬
The
gain
in
strain further exploration and re¬
atomic
energy,
defense produc¬ tant companies as Dow Chemical,
deposits ac¬
duce
the
finding of additional
tion
and
economic
stabilization, Mathieson Chemical, Celanese, du
counts of 29,supplies, and thus slow down the
civil defense, and merchant ma¬
Pont, Nueces Rubber, and Mon¬
345 " was
the
rate
of
discovery.
And by the
rine activities.
Here are where santo Chemical have built
large time
increasing
gas
demand highest for any
the big cuts would have to
be plants in the, Gulf Coast, while
March
since
made.
Expenditures for all other American Cyanamid, Commercial caught up with a decreasing dis¬ 1945.
covery rate, the consumers would
Government programs combined
Solvents, Diamond Alakali, Phil¬
The net gain
quit thinking
about
regulation
have declined since 1950, although
Earl B. Schwulst
lips Chemical, Aluminum. Com¬
and would start shouting for more for the quarter
some of these
programs contribute pany of America, Texas
Eastman,
was 69,168 ad¬
gas at any price.
directly to the defense effort and Koppers, Kaiser
Aluminum, and
ditional accounts and $207,210,000
have
been expanded — such
What is the real purpose of the
as
others
have
plants under con¬
in
total
deposits.
This
is
in
defense housing, aid for schools struction.
proponents of Federal regulation?
contrast
with
the simi¬
in defense areas, generation and
Could it be that the consumers sharp
Strong political pressure is be¬
lar period in 1951 when the gain
transmission of power for atomic
want to get their gas to the kit¬
ing exerted to keep Texas and
in accounts was 17,955
and de¬
chen stove at less than it is really
energy and defense plants.
Louisiana gas within those states
posits stood about even. Starting
worth?
Certainly the producers
"It certainly is proper to effect to
with the
second quarter of last
help; boost industrial growth.

ing

all

problem

the

economies

operations

in' government

that

circumstances

Why

sell

which

the

natural

these states

Northerners

who

are

with

gas,

blessed, to

have

plenty of
During
my
tenure
as
coal?
Especially why permit its
Secretary of the Treasury I have export at
ridiculously low prices?

permit.

carried
ment

on

an

intensive

improvement

manage¬

program

to

Gas

consumed

within

the

state

where it is produced is not in in¬

should be entitled to fair payment

year, the
trend in deposit gains
has
been
steadily upward,
and
ultimate
March, with its income tax pay¬
benefit of the consumers, who are
ments, is not normally a particu¬
in no position to produce gas or
larly good month. However, the
search for new gas.
The Federal
gain this year brought the in¬
Power Commission does not risk
crease
in
deposits
for the
12money nor can it find
new gas month
period to $734,187,000,
supplies. It is obvious that a 6% or 6.3%.

for taking

the risk of finding new

supplies

gas

for

the

.

modernize

operations toward

creased business

of

interstate

possible

as

result

a

have been

report to the public and

dollar savings in

excess

000

of

the

operating costs when¬

efforts I

1949

commerce

Hence, if

these

$56,000,000

terstate

re¬

ever

gress

in¬

through
and

respectively

for

to

Con¬

cannot

be

of

gas producers

pipe

lines

selling to

should

be

subjected to FPC regulation, they
would turn to
the

selling locally.

And

large oil companies, which

going in for

more

and

more

chemical production, * could util¬
in ize their gas supplies by building

$8,000,-

fiscal

years

their

own

chemical plants to real¬

ize the intrinsic value of their
gas
reserves.

return
pay

on

cost

would

not

be fair

to the producer and explorer.
the
free
economics
of
this

Deposits in New York's 130 sav¬

banks are now at the alltime high of $12,381,829,000, rep¬
country, the gas producers and
resenting
7,715,394 regular sav¬
explorers for gas supplies per¬
ings depositors plus some 2,00(1,000
form a necesary service for the
school, club, and payroll savings
In

consumers.

are

petro¬

fiscal

savings

and

of

able to

excess

the

dollar

$4,000,000

1950 and 1951."

and

efficiency, better subjected to Federal jurisdiction.

service to the public, and

dic¬

possible of

borrowing

as

operations, including capital ex¬
penditure programs, v/hich draw terstate transmission companies,
since they cannot risk being sub¬
heavily on investment funds.
v
"There are those, of course, who jected to Federal regulation.
If
would
solve our deficit financ¬ gas production should
be regu¬

year

much

well

is engaged in substantially normal

duction

bor¬

as

buy their gas supplies
viduals. In contrast to the World from others, and do not drill wild¬
War II situation, for example, a cats in the search for new sup¬
large sector of industry and trade plies. .Some of the large oil com¬

shall have to do

care

government

financing.

additional

investors

the

some

sources

Assuming

passed

would

price of natural

lower costs of governmental oper¬
ations.
It requires a debt man¬

at¬

be

in

along
by the transmission and distribu¬
tion companies to the residential
consumer,

assumed

consumer

the

to

Oil

"The
world

search

Reducing the price of gas at
the well by, say, 4c per Mcf would

depends regulation of the production of
upon many factors, not the least transmission
pipe
lines,
these
of which is the investment posi¬ companies
have
divorced
their
tion
and
preference of institu¬ producing properties so far
as

continuing

of

with

come,

non-bank

non-bank

Coun¬

and

Committee may be quoted as fol¬
lows:

-

time

Oil

on

report dated Jan. 29,
"Present and Future Sup¬

on

plies

ducing areas, naturally would be
pleased to see lower prices for
natural

'

prehensive

producers.

the

in

"

Petroleum

Committee

significant

states, far removed from the

undertaken'

which will have to be

would

National

Availability has prepared

good peo¬

many

eral

of

part

a

to

are

The

the combined effort
necessary to find the future sup¬
be a lull, at present, in inflation-'
ply of gas for this country, vlt is
ary pressures, it would be impru¬
a- hazardous business and the exdent to give less than full weight
plorers for new supplies can only
to
the
inflationary implications
be
induced
to
carry
on
if the
of our large defense program and,
prospects of high rewards to the
of the deficit financing operations
successful will make up for the
size

cil's

Regulation

by wildcatters and

discoveries.

new

The

Proponents of Federal

large

the

and

of

Supply and
Federal Regulation

losses of frequent failures.
cost of your property, less depreit. For some
"The API estimates the average ciation to date—which would give
defense production,
'you, say, 4c per Mcf instead of
warned of the will draw heavily on our physical, cost of a w.ildcat well at $90,000.
Would you invest $90,000 of your the 8c the purchasing company is
possibility of resources, and the existence of a
paying you."
The producer has
a
renewal of significant deficit will add to the money in a wildcat venture of¬
of funds
available for fering one chance in nine of get¬ ; been getting the 8c because if
inflationary! supply
one
purchaser won't pay such
ting your money back, but only
John W. Snyder
pressures as a spending or saving.
one in 44 of striking a really prof¬
price another will, and, in any
result of
the
"To some it might seem at first
itable
field, if you knew you case, it is cheaper than coal or oil
defense program and the financial
glance that it ought to be a pretty
would be regulated down to a 6% to the consumer, or he wouldn't
needs
of
the
government.
Mr. simple matter for the Treasury to
return on cost if you struck the buy it.
At first glance, cutting
Snyder stressed the necessity of finance the entire deficit through
back the producer from 8c to 4c
pay?
obtaining the needed funds from

eral

of

Thursday, April 17, 1952

.

producers

from page 17

Snyder Reveals Plan of Deficit Financing

;

.

.

(1614)

22

The service should be

for—whatever it is worth.
the producer is en¬
titled
to adequate compensation
or
not, he
will simply not go

ings

accounts.

paid
But

whether

ahead

profits
sumers

finding

b,y

so

new

gas

doing.

If

With McDonald, Evans
(Special

the

con¬

could muster enough votes,

they could conceivably have their

to

KANSAS

unless he
L.

The

Dittemore

with
pany,

Financial

CITY, Mo.
is

McDonald,

Chronicle)
—

now

Evans

DeVere

connected

&

Com¬

1009 Baltimore Avenue.

Volume 175

Number 5X08

.

.

.

The Commercial and Financial Chronicle

(1615)

x-y„<

'V

'V/»w>c4'»

'

v

<

*

.V

"

S
's

23

#*>

s

....

'

'

«N/

>

V

\:-v

'

••

; an' area

••.

:

.

of 89,000 square miles,

^mmprising 46 of California's 58 counties,
Wrves

ohe~M,itiffof California's present

population. In 1951, the Company added
134,001

customers,

new

GROSS

the largest number

connected in

ever

a

single

REVENUES advanced to

OPERATING

$279,499,000. The increase
$42,061,000,

NEW

over

the

a

new

previous

17.7%, the largest annual gain in

or

RECORDS

tricity and

year.

WERE

ESTABLISHED

for sales

peak of

year

our

of

was

history.

both elec¬

Sales of electricity totaled 12,630,000,000 kilo¬

gas.

watt-hours, and sales of gas 200,515,000,000 cubic feet, exceeding
those of the

preceding

year

by 14.4% and 16.1%, respectively.

bear r,v
rw»

>:ockfli

^TvX*
project.

SATISFACTORY PROGRESS
on

our

OWNERSHIP

made

was

construction program.

$152,-

and

was

OF

THE

further broadened

of 17,965

COMPANY

by

an

APPLICATION

000,000

ami i»cr

larged facilities to provide for rapid

of the year

growth of business in

$37,650,with the

463 stockholders of record.

^

plants on UK

was

spent

v

new

on

our

service

area.

annually

filed

was

Commission in July. An early de¬

the Company had 188,-

cision should be

forthcoming.

,v

HIGHER GAS RATES
an

en¬

AUTHORITY

000

stockholders. At the end

atear.e«M<!

FOR

to increase electric rates

increase

annual basis

were

totaling $17,535,000

NET EARNINGS for the

on

based

approved by the Califor¬

on

average

nia Public Utilities Commission to compen¬

with $2.62 per

sate the

rate increases

Company for higher costs and taxes

associated with this branch of

our

ings to

operations.

more

common

stock

were

$2.14

per

share

number of shares outstanding, compared

share in the previous

already granted

or

year.

It is expected that

applied for will restore

earn¬

satisfactory levels.

<,

President

Summary Showing Sources and Disposition of Income
Average
Year

Sources

Income:

of

Electric
Gas

Department

Department

.

7

7

revenues

operating departments

Miscellaneous income

$ 46,383,000

$ 39,862,000

10,975,000

Materials and
Provision for

.

pensions, insurance, etc.

11,958,000

12,372,000

supplies, services from others, etc

35,401,000

10,877,000

.....

11,169,000

50,238,000

purchased

Oil and other fuel

11,165,000

3,806,000

Provision for depreciation and amortization




390,000

$224,936,000

Income:

.

£#S"W*

1,375,000

$279,863,000

Operating payroll, including charges to clearing accounts
Power purchased from wholesale producers
Natural gas

69,023,000

364,000

Totals
of

$154,148,000

1,500,000

7

1947-51

$189,365,000
88,634,000

revenues

Revenues from other

Disposition

Five-Years

1951

Taxes, including provision for Federal taxes
Bond interest and other income deductions

on

25,986,000

60,497,000

income

2,849,000

31,610,000

.

42,979,000

16,229,000

12,581,000

,

13,383,000

10,825,000

Dividends paid on common stock

....

22,003,000

17,023,000

Balance retained in the business

....

Dividends paid on

preferred stock

.

.

.

1,490,000

Average Number

of

Earnings Per Share
Outstanding

.

Shares
on

in

the

Common Stock Outstanding
of

11,001,529

8,511,576

$2.14
of

$2.39

,

Common Stock

Business, Per Share

$2.00

$2.00

of

Common Stock

♦

$0.14

$0.39

Pacific Gas and Electric
245 MARKET STREET
A copy

$224,936,000

Shares

.

Dividends Paid Per Share

Retained

of

Average Number

3,138,000

$279,863,000

Totals

•

Company

SAN FRANCISCO 6, CALIFORNIA

of our 1951 Annual Report to Stockholders will be supplied
upon

request to K. C. Christensen,

Treasurer

■

24

The Commercial and Financial Chronicle

(1616)

the government has lost much support in the country, as is indi¬

Can British Gold Drain Be Checked?

cated

the

By PAUL EINZIG

the

by

balance

of

see

Hold Dinner Meeting

payments crisis and to release labor needed for
a
drastic curtailment of domestic civilian

without

rearmament

Dr. Einzig reveals

consumption.

of 1951,

Another means by which the balance of payments crisis could
mitigated is through impressing the outside world with the gov¬
ernment's determination to proceed with unpopular but necessary

Britisli gold drain has eased since middle
this should be no ground for optimism.
as important as ever for Britain's
Government to
efforts to improve balance of payments, and says

but

Holds it is
continue its
'

Boston Inv. Club to

elections at the beginning of
how it would be possible to solve

the local

result of

Yet it is difficult to

March.

warns

be

;

be inevitable. • Holds gold (brain is
largely doe to misuse of limited convertibility of sterling. *
Eng.—For

useful.
may have to go even further in this
direction, in spite of the loss of popularity such measures entail.

Conceivably the government

time since

the first

million

in

January

and

million

$266

Finally, efforts are made to secure an influx of American
capital for the development of raw material resources in the Colonies;
Such .investment would provide a temporary relief at the
cost of increasing the burden on the balance of payments in the
long run. The increase of the burden could be offset if the result

in

February.
Even if we allow
for special
factors resulting in a
gain of $75 million
in March, the improvement is substantial.
It
"Was due in

^trade

the increase of the bank rate

and the reduction in the amount of food subsidies were very

the beginning of
British monetary
authorities are in a position to breathe more freely. The outflow
'during March amounted to $71 million only, compared with $299
LONDON,

From this point of view

measures.

further import cuts may

the gold drain towards the middle of 1951, the

of the investment of American

capital is

rial exports to the Dollar Area.

such investment could be secured.

part to the reduction in the adverse

increase of

an

raw

mate¬

It may take some time before any
Meanwhile Britain will have to

George Geyer

make the utmost effort to work out her own salvation.

balance, and in part to the covering of

BOSTON, Mass.—The next din¬

short

positions by foreign buyers of British
goods. Towards the end of March the develop¬

ment of

ner

Describes Character and

noteworthy premium on sterling over
'the official dollar parity of $2.80 relieved the
Authorities from the necessity of supplying the
a

market with

the

dollars, since it

importers to

fOf the normal

possible for

was

dollars in the

1the

source

This was, presumably,

market.

the moderate temporary

of

of Business of the

Dr. Paul

gold towards the end of March announced
"by Mr. Butler on April 4. Even though the gold

at such

would

exhaust

months.

the

reserve

in

less

than

The

mium

sterling disappeared,

It is therefore

ther

as

important

become inevitable.

out and then

may

The

having to make

a sudden and
In addition to direct cuts in

:rearmament effort.

policy

of

credit

as

ever,

■

V

V:;

but it changed its emphasis.

served

per¬

Fur¬

Winn
for

Socialists

that the crisis

is

as

a

The

line of

'Left-wing
there

means of

economist after another
is

no

connection

domestic

between

internal

to

the

inflation

to

The
of

and

The gold

drain is due to*

a

a

'number of

from

data

over

ling accounts.

the

goods

are

studies

well

third

Research

other

as

currently developed

by

Unit.

the

From

tables have been

These

tables

manuscript,
added

for

of the tables.

have

pre-

made

Southern California Edison Co. at

$34

num-

proceeds will be used to
finance the company's continuing

from day to day.

construction

A professional group of approxi3,000 firms forms the

;

markets.

to

to"

Mr.
two

create

maintain

It

might be thought
that to maintain a market all that
is necessary is for firms to execute the orders of others
view

Clearly this is

of

,

e

bank loans previously jssued tor
construction purposes. The
s
- spend
ab?u*
$139,462,000 on expansion during
1952-1953 on top oj-the j>3'44JbO,9®® spent during 1946-1951. Chief
^em in ^"e. Pres^nt program is
the completion of a new steam
electric station in San Bernardino
County, initially to have two 125,000 kw- generators. Also in^tne
construction budget is about $20,600,000 to begin work on additi°nal steam generating capacity*

they

an

plus other funds for engineering
a .n.ev^ storage reservoir, in ^er~

ideal

as

milion Valley and a new hydro-

over-the-counter

most

of

...

operating nucleus in maintaining
the over-the-counter market and
in executing the business of customers. Many of these firms hold
memberships on exchanges, devoting most of their time to the execution of exchange orders for

(1)

including
$8,000,000 of

program,

retirement

the

mately

Hoffman points
primary functions:
markets
and
(2)

share.

per

Net

ber and character of the accounts

firms,"
out, "have

investment

electric power

an

those

who

over

-

one.

In

situations

of

im-

balance, firms may attempt to
bridge the gap by buying or selling for their own account in so far
as their capital permits; or they
may attempt to do this in con-

junction with
or

an

the

-

may

lowering of bids

a

advancing of offers;

they
attempt to enlist the interest

"Over-the-counter

may

,

entire

anced

or

San

project at

Mam-

Joaquin River Area. Of the
required during 1952-

1953, $8,000,000 remains from the
bond

sale

last August,

$90,000,000
new'financing—in¬
cluding the present sale — and
about $41,000,000 will come from

will represent

internal

sources.

The

company

supplies

elec-

.tricity in Central and Southern
appendix has and support of outside investors." California in a territory embracAt the end

i

counter

research

project has been made
possible by a grant from the Mer-

markets,"

ing-78

incorporated

cities, and

than
150 unincorporated
in any publicly-held issue if there communities, i n c 1 u d i n g Long
are persons willing to make bona
Beach, Santa Monica. Santa Barfide bids and offers.
All types of bara and Beverly Hills. Dividends
Mr. Hoffman

says,

securities

found

are

"can be formed

on

these

mar-

more

have

been

paid

-

on

the

common

kets, with a predominance of stock in every year since the
trading in, government and cor-? company's founding in 1909, and
of Financial Knowledge.
porate bonds and in selected types are currently at the annual rate
According to data obtained by of stock. These markets are pre- of $2 per share. For 1951 operatMr. Hoffman, there are an esti- eminent in those
securities having ing . revenues-; were
$117,937,584

rill

•

Foundation

mated

ster¬

for

Advancement

80 to 90 thousand corpora-

tions and governmental bodies in
the United States, each of which

hasi outstanding
amount of

to

•

a sufficient
publicly-held securities

warrant

occasion

on

an

over-

toesayU that Xre^are^hfs
separate markets^
The Kgu™

the least amount of risk and those

having

!

greatest amount; but
they also play an important role

potential

scope

of

the

man

contends*

"the

outside

limit

°f 0ver-the"c0UIlter markets is the

*

total of Purely-held securities,

over-

the-counter market.
Based

upon

those held by persons (or interests)

who

will

sell

under

'favorable' market conditions. This

count

W. D* Bradford

in issues of intermediate risk."

intended only as an indication of
the

and net income was $19,615,182.

the

many

convertibility is liable to be abused and the
.

presented

lack of quan-

a

as

been

bought for export to

•

their

wish to inquire further
regarding
methods used in the preparation

there is no hope for
checking the drain. The only effective way of
checking it would be the abolition of the system of transferable
Sterling accounts. So long as sterling cannot be made universally
~

over-

"Over-the-counter

nationwide

a

which offered publicly yes¬
terday (April 16 ) 300,000 shares
of
$25
par
common
stock of

in-

the-counter securities may be as
many as a million, with, of course,

appear.

of the

the

can operate such accounts.
Before the goods reach their destination
they are redirected to the
Dollar Area. This is believeS to be done on a
very large scale,
though no information is available about its approximate extent.
fYom the point of view of the gold reserve such operations consti¬
tute a dead loss. So
long as they continue on the present scale

gold drain is bound to continue.

not

were

the-counter markets,

«,

-|Ome country within the group which

Convertible its partial

with

are

possible a much fuller presentation of the basic features of over-

of the

working of the system of convertible

On the face of it,

general

markets

these and other sources, a number

limited convertibility of sterlihg.'In addition to
losing gold because
«f the import surplus
pf the'United Kingdom and the dollar re¬
quirements of other countries of the
Sterling Atea; much gold is
lost because the dollar proceeds* of
"Sterling Area exports do not "
find their way to the gold reserve. Thi§
is,the result of. the inade¬
quate control

and

Corp.

(Inc.) jointly

total funds

This

large extent to the misuse

Co.

moth Pool, both in the Big Greefc-

Securities

acute scarcity of

workers

Boston

earlier

scarcity'can be relieved by the curtailment
Industries working for export trade have doubt¬

benefited by the releasd of
production of dentures. '
*
*

First

Harris, Hall &

study in the series, the author has markets, since the normal flow of
been able to draw upon the two bids and offers is not often a bal-

the

that this

6f that demand.

various

terests currently maintain in

counter

the preparation of the

In

that,the creation of excessive demand

less

of

'

titative material.

One

pared.

labor,

-

and

scope

together

of summary

an

the

-

these

earlier because of

these

introductory customers.

an

over

These matters

engaged in the manufacturing of den¬
saying that since the imposition of a charge on dentures
•■given by the National Health Service the demand declined by
$0%, resulting in large-scale unemployment among members of
ithe association, many of
whoip had to find, other occupation. This
of

"Positioning

be

of

the association of workers

the'development

capacity

.

tures

Instance illustrates the fact

similar

Willis

Over-the-Counter

on

considered

State of the balance of payments.
Quite recently one of. them,
^Writing in the London "Times;" rfiade sdme sarcastic remarks about
the policy which tries to improve* the balance of
payments by
discontinuing the distribution of dentures' free of charge.
A few
days later the "Times" published a letter from the secretary of

bad contributed towards

and

structure and operation and some
of
their
present - day problems,

view

and

a

second,

character

is that

measures.

commits himself

the

in

markets.

strong

longer claimed by

arguments

acted

intended

balance of payments crisis, and that, therefore, there is no

jneed for trying to remedy it by
that

new

So. Calif. Ed. Stock
The

thousands of

many

which

accounts

Over-the-

on

Markets"

treatment

depriving them of

this is

Friend

This third study, it is stated,
might well have been published as
the first in the series, since it is

been invented in order to have an excuse for
reducing the stand¬
ard of living of the
working classes and for

•their Social Service benefits.

Irwin

"Activity

Securities

Tory invention and that it has

a

of

University of changes taking place in the

Markets."

imports and such

is

under

author of the first study

as

Counter

drastic cut in the

measures

no

Over-the-

made

the

of

Pennsylvania.

'-''A

It is

of

Markets,"

Business

of

of

o-,:r"

Political resistance to the much-needed

the

Banking Group Offers

group

Extent

the auspices of the Securities Re-

as the increase of the
duty on petrol, the gov¬
have to curtail purchasing power further
by means

restrictions.

offers

Geyer,

& Co., Incor¬

their

as

operation.

and

Principal

subject will be "The Outlook for
Stocks in 1952."

over-the-counter

search Unit of the Wharton School

measures

ernment will

well

as

p.m.

Bank

scope

headed

and

entitled

for the government to

as ever

the

on

Counter

the lasting nature of

on

efforts to improve the balance of payments.

import cuts

"indirect

markets

Thursday,

George

be

the

at

on

porated, New York, specialists in
bank and insurance stocks.
His

acter

12

giving
©xport trade priority over rearmament may have to be carried
further than hitherto. This is deplorable from the point of view of
Collective defense, but it Is wiser than
allowing the gold reserve to
tun

these

at 5:15
will

held

be

Club

President of Geyer

"Character

on

Discusses

24,

individuals, firms and institutions,
security markets, entitled "Char- It is estimated that the number of

to indicate that the foreign

seems

exchange market is disinclined to depend
the improvement.
•
severe with its

April

University of Pennsylvania ket.
This market
(collectively
viewed) is maintained by the bids

studies

will be possible to
The fact that, fol¬
the gold reserve figures, the pre¬

the announcement of

on
on

of

Press has just released for publication
the third in a series of

Nor is it certain by
any means that it
maintain the improvement achieved in March.

lowing

character

Markets."

Yacht

speaker

been

rate

a

general

structure and

checked, it has slowed down considerably.
Having said all this, it is necessary to guard ourselves against'
Undue optimism.
At the end of March the gold reserve amounted
to
$1,700 million. "<■ In
the absence of special non-recurrent
items the loss of gold during March would have been $150 mil¬
lion.
Unless
a
further .improvement
occurs
an
outflow of
gold

Extent of Over-the-Counter

and

Einzig

-<©f

'Outflow has not

University of Pennsylvania

and

influx

will

Club

Boston

Wright Hoffman publishes third of a series of studies, prepared by the Securities Research Unit of the Wharton School

their requirements out

cover

Scope of Activity

G.

tfact the authorities

meeting of the Boston Invest¬

ment

Of the Over-tlie-Coiinfer Markets

supply offered in the market. In
were even able to buy some

*

..

Thursday, April 17,1952

.

.

.

Opens

liam°D. Bra™ha^^I
.

fices

at

Awnllo

Qft9_

engage

engage in the securities business,

Gardner & Co. Formed
WHITE

PLAINS,

Gardner and H.

N.

Y.—L.

F.

A. Gardner have

of

quota- fl-2ur
wel1 h
as high as s400
formed Gardner & Company, with
nn?
invpetmpnt
Tv/r«;„
4n
tions ixrhir>h appear in investment ngure may wen oe as nign as
which annoar
offices at 241 Main Street, to en¬
services and private releases of billion in .market value—securi-

-

a

n

"There

.

are

.indications of

a

change in the domestic situation in

degree in the textile, trades where
Coupled with

a

the

moderate curtailment




anticipation of lower prices,

of the consumers'

purchasing

.

gage

the right direction.- Consumers' demand has declined
considerably
.during the past month or so. This is true to a particularly high

investment-

'

'tO

;

banking

50

.

firms,

thousand

it

is

govern-:

ties issued by,

as

many

as

in

a

securities business.

.

80,000

issuersv>0n5the aeniand.^e^glnniengarten Opens

■ nilt«tifiA

limlt^of

nvpr-the-rcmnter

...

*

L-

.L—

Volume 175- Number 5108

...

The Commercial and Financial Chronicle

SAFEWAY
N

I

O

STo

R

(1617)

11

D

R

O

•-.•IV

R E S

*

1951

'•

'

.'

....

.

'

n,

:

.

;

Income from dividends, interest

and other

.//

sources

"780,358

4

'

*

Cost

of

merchandise, manufacturing and

;

•

.

»

.

.

to

7,615,851

,

»

.

.

Dividends per

share to

Net Sales, Earnings

Number of

and Income

Number of

stores

Number of

stores

closed
in

.'v7\'

6,400,897

2.40

2.40

loss,

'1948

sl.OO

1949

.

1.00

1950

.

in five percent preferred stock

1951

.

1943

$7,615,851 for

was

Government Price

%

^

stock

at

The food

were

the

paid

on

the

of $2.40

rate

the year..

-

i.<: «/ »v7;.

■

total

ter

and

-

United

States retail

grocery

$113,821,747, total

.

quarter of- 1950, that com¬
profits before taxes were down
59%; that dollar profits after

current

liabilities of $172,667,846.

taxes

current assets to cur¬

1.39




to

1.

>

■

and

profit after

it is concerned the

as

to

it and

treatment to

tailers.

declined from

President

SAF
t

I

N

C

E WAY
..

•

!

O

:,

R

p

O

Stores
-

R

be used

price
strictly

con¬
as a

political tool.
Safeway plans to continue its ef¬
forts to force the price control au¬
thorities to give fair and impartial

.

that the rate of

taxes

per

$100 of sales to 41c per $100 of
sales. Six of the concerns involved
suffered actual net operating losses
in the third quarter of 1951.
It is becoming increasingly evi¬
dent that the retail food industry has
been singled out as the principal vic¬
tim of OPS regulations and that so
trol law is

declined from $15,273,229 to

$4,967,004

Regulation

far

compared with the

as

bined

current assets

and total

of 1951,

third

subsidiaries had aggregate net assets

was

/

business showed for the third quar¬

On December 31,1951, Safeway

liabilities

.

,

integrated chain retailers such as
Safeway.
A recent survey covering 32 chains
doing approximately 15% of the

Information

The ratio of

.

normal of approximately $1.50

se-

of

Balance Sheet

of $239,921,849

industry has suffered

verely as a result of unfair and
inequitable price control administration. This has been particularly true

share on 2,827,703 shares, the
average number outstanding during

rent

.

'

.

after all charges and

per

of

.

*Pai»j in part

Cash dividends
common

2,125

1.17

compared with $14,717,301

in 1950.

.

1947

.

1942

City flood.

as

»

•

1.17

! 1941

1951

.

.

price controls affecting the entire
food industry (2) property loss of
$774,768 suffered in the 1951 Kan¬

property

2,072

.

year

1946

.

Net income,

70

164

209

1.50*

.

sas

262

.

1940

to

.

1945

(1) Federal

due

.

7

1944

lower than in

were

was

.

,

5.20

»

$ .83*

.

1939

and taxes

' '

% 2.26

.67

1937

earnings after deducting all

1930. This

•

year

year

1938

costs

v.

'

13,680,568

15-YEAR DIVIDEND RECORD

history of the Company, totaling
$1,454,642,996, an increase of
$244,649,234 or 20% over 1950.

!

during the

1,036,733
7

6,786,488

stockholders

operation at end of

161,723,887
14,717,301

6,378,317

.

.

opened during the

new stores

Safeway Stores, Incorporated, 1951
Net Sales were the highest in the

I

common

.

v

-1,237,534

•

...

Profit Per Share

stockholders

common

~

1,033,677,866

194,115,290

.

.

^

1,253,692,213

•

of Common Stock
to

125,292
.......

•'

•

preferred stockholders

Net

Net

•

•

expenses

Net Profit applicable to common stock

Dividends

•

.

.......

••

and administrative

\

Dividends

*

ware¬

Net ,Income

housing-

Total operating

1950

.

$1,209,993,762

$1,454,642,996

A

T

,

E

D

;

to

other food

re¬

SS

The Commercial and Financial Chronicle

26

Continued

Renominate Crooks
As nyse Chairman

Canadian Securities
Canada's

McKinnon,

progress in
unlike that of

the

In

in

surplus
in

Mr.

nadian

the fact that the

of

own

government.

On

April

7, Canadian Minister
of Finance Douglas C. Abbott re¬
ported to the Parliament in Ot¬
tawa, that the Treasury for the

reduced

fiscal

year

show

a

1951-52 will probably

$365,revenues
of

surplus of around
based

000,000

on

$4,003,000,000,

an
all-time high,
expenditures of $3,647,000,000.

These figures are not final, but
the estimated surplus for the year

14,

as

change firm of

Ex¬

months, has been solved by mov¬

Thomson

Exchange

been

a

since

1941. He is 46 years old and

package of 20 cigarettes.

was

in 1946.

,

available.

After

budgetary

adjusting
the
for non-cash

surplus

transactions,

it

surplus

is

estimated

that

amount of

This sum,
000

received

from repayments

investments

loans,
capital

of

and

working
other non-

advances and

budgetary receipts made $1,043,000,000 cash available for making

loans, investments and
non-budgetary outlays.

necessary

other

Analyzing

the

details

the

of

total revenues, 55.2% was derived
from direct taxes and 36.9% from

indirect taxes.
Personal

increased 50.2%
fiscal

to

employment

20%

defense

receipts

the previous
higher levels

over

due

year

tax

and

also

also

proposed

yielding $1,134,000,000. This
is attributed to higher
profit earnings and also to the
enue,

increase

the

to

Canadian
the

interest

great

is

favorable

not

due

taxation,
taxes

as

that

results.

so

fiscal

much

to

would

to

situation

increased

readjustment of
produce better

The personal income tax,

the corporation income tax, excise
taxes and taxes on cigarettes were

stocks

investors

by

Metropolitan

Toronto Stock

a

J.

(New
The

York

first

City)

branch

facilities

had

of

been

this

heavily taxed to take

care

were

rill

is

of the

Conant has become affiliated with
&

Brady

has

Mass.

joined

Chronicle)

John

—

the

SAN

vin L.

of

Newbury

FRANCISCO, Calif.—MelJory, Jr. is

solidated

now

&

Fund,

Trustees

which

of

!

—

Canada

offers

for

portunities

CANADIAN STOCKS

speculation in

remaining
the
•

world.

A. E. Ames&Co.

ing

of

our

sound

many

investment

of

one

favourable
To those

in Canadian

ties

beyond, next'.year,
The stimulus provided by rapid
amortization,
for
tax
purposes,
will

be

even

in 1953. The

the
areas

,AE

v

1951

also

nating C

families

pays

of

•

•;

r,

~

Nominating Commit-

proposed

a

11

0 m m i

Joseph H.

Reynolds & _Co; Walter
Hirshon, Hirshon & Co.;,
tS +1?

1

ut?~

f S"??11

•

ler; Nathaniel S. Howe, Hallowell,
Sulzberger
&
Co.;
Phillip
B.
Leavitt, Leavitt & Bry; Robert J.
Lewis, Estabrook & Co.; A bn H.

McAlpin,

Jr.,

?°'u FGnCy.
Co.;

Loeb &

Wood,

Walker

&

Stewart, Kuhn,
James J.

j

and

Watson,

ii7«

1

With
to

T»rr

1

r*

lint
The

Lawrence
Tifft

Brothers

Financial

Chronicle)

is

connected

now

Brothers,

1387

Main

Exchanges. He
Springfield Manager for Trusteed Funds, Inc.

; a mistake
deterrents

rec°rd

to ignore the very real
protracted

against

sPend'ng

plant

on

and

The selective adjust-

equipment

that

mated

by

the

of

end

this

piant capacity will have

year our

en(j 0f World

War

expansion

well

is

II; this rate of

in

of

excess

nPrmal. Furthermore, it is impor-

tant

note

to

reinvested

that

profits,

which were the largest
singie source of financing for the
iarge
postwar plant
expansion,
declined sharply during the past
year as

resuit of the extraor-

e

clinarily

high

rates

of

taxation,

Calgary & Edmonton Corp.

well suffer further
in the future. There

prospect of tax relief this

n0

and

year

chance Of

perhaps
any

only

slight

real relief in 1953.

Existing tax rates make it very
difficult to justify new plant
modernization programs on

or

an

upon

basis, and the excess
tax bears most heavily

therefore,

summary,

is

that

on

the

will

1952

be

a

for business spending
plant and equipment, but that

the increase

will

1951

over

seems

a

reasonable

guess

a

for

it

expansion,

plant
show

to
the

be

of

proportions. Furthermore,

current

decline

some

that

good year

is

likely

from

the

glad to send you

New York 5, N.Y.
1-1045

Ross, Knowles
Members:

Inquiries Invited

Kippen & Company, Inc.
Established

Fifty Congress Street

607 St. James St., W., Montreal, P. Q.

Boston 0, Mass.

Association of Canada

Telephone UNiversity 6-2463
Members

of

the

1S22

Investment

Association

of

Construction

and

outlook

for

Dealers'

Canada

result of the

terials

less
a

for

the

release of

,

the

which

publication
excellent

an

record .in

forecasting the number of housing
in 1951 has just completed

starts

its survey for the current year. It

anticipates about 1.1 million starts
in 1952,

which is substantially the

number

same

last

as

year.

Looking

further ahead, it ap¬
that the building boom is

pears

mature,
most

such

as

of

the

number

booms

go;

for

years,

postwar

the

of

dwellings built has
substantially in excess of the

been

been

curtailed

during the past
but there is little doubt

two years

that

these

will

programs

when

creased

factor is

Un¬

public

construction

changed
wave,

by
this

larger volume

later

in

of

the

in view of the demonstrated

need-for

schools, roads, hospitals

by

cheap financing by

of government

estate

eco¬
new

means

guarantees of real

mortgage

by

in¬

be

warranted

nomic conditions. The second

loans,

direct

or

government agency; in

a

postwar years, this permitted

the

purchase

through
greater

of

house

new

a

monthly
payments
no
than would be involved

in
renting. Finally, real estate
lending terms have been tightened

through the imposition of Regula¬
tion X, but can be loosened at
the
is

time,

appropriate

always

the

there

and

possibility

of

new

financing devices to increase the
availability of
cheap mortgage
credit.
On

balance,

good basis exists

no

forecast of residential build¬

a

taking

ever,

tioned
one

while
lish

all

factors

1953

a

is not

How¬

aforemen¬

consideration,
the

guess that
likely to estab¬

in

record

new

year.

the

into

venture

may

residential

building activity, the volume of
such building may not be very
much

lower than in

Consumer

in

in 1951

ing

to

no

1952.

Spending

consumer

was

—

The de¬

spending early

fairly modest, amount¬
than

more

about

3%

from the first to the second quar¬
ter. The sharpest decreases were

experienced in

durable

consumer

goods—a not unexpected develop¬
ment in view of the

several post¬
of high production fol¬
lowed by two large buying waves
war

years

after

the

outbreak of the

spending

on

durable

apparently been
the other

ices

Korean

For the past year, consumer

and

ma¬

strike

mean

year

the

as

more

is

should

a

has

purposes.

civilian

situation

protracted

—

construction

improved in recent weeks

The Toronto Stock Exchange
The Investment Dealers'

330 Bay St., Toronto, Canada

Building

copy on request.

The

& Co.

(formerly Milner, Ross & Co.)

a

A

year.

war.

year.

above Canadian stocks, and shall be

Two Wall Street

ing

achieved

cline

although 1953 will be

Hudson's Bay Company
studies

busi-

nesses.

it

Gold Mines

prepared

expanding

and

new

modest

Hollinger Consolidated

have

bolster

ing beyond the current

is

on

We

factors

for

prospect

always

need for additional hous¬

a

an(j may very

record year

Anglo Canadian Oil

of

new
housing requirements.
strong pressures for modernizaOn the other hand, two factors
tion and cost reduction. Some inare
active which have not been
dustries are apparently operating
with a rather substantial volume present in any previous building
of obsolete or inefficient plant, boom. One of these is public
while research and development housing, now an established insti¬
programs are constantly bringing tution in our political economy.
housing
activities
have
new products and new techniques. Public

earnings

Stock

formerly

levels

record

annual

profits

Boston

was

Research and Trad¬

available.

con-

stantly rising labor costs will give
further impetus to the already

and

interested

are

and

of

require¬

income.

impairment

Hornblower & Weeks.

securities, the facili¬

Departments

competition

creasing

and

Nomi-. increased
by about 50% since the

new

e e;

Brown,

or

of

1952

prospects of in-

current

These

loans

to

op¬

few

in

substantial

housing

prospects for another good hous¬

under the tax-certificate program

In

incorporated




-

create

ing.

the

P.

IN CANADA

plant and

Also,

amount

Furthermore,
the population movements brought
about
by the
defense program

?nd"stnal capacity continues to
increase rapidly. It has been esti-

benefits

SPRINGFIELD, Mass. —Joseph

NEW HORIZONS

on

on

Street, members of the New York

Corporation

NY

,

the

ces,s capacity m several lines, and

with

Municipal

4-2400

be

previously with

Highland Securities Co.

cyclical peak

spending

in

still sub¬

are

aggregate.

substantial

a

personal

Charles
B.
Harding,
of
Smith, Barney & Co., and William
D. Scholle, of Scholle Brothers.

with Con¬

Provincial

WORTH

Fenner

membership of the Board

(Special
was

the

mark

is

the

ments, and this will be facilitated

demonstrate the existence of ex-

Investments, Inc., Russ

Building. He

&

Edvvard;

L.

staff

Richard J. Buck & Co., 8
Street.

will

in

upgrading
by

reasonable guess that

a

there

ments in 1951 were sufficient to

tee

BOSTON,

were:

Corlies

Pierce,

Gratuity

The

Financial

eco¬

On the other hand, it would be

mu

to The

gauging

vacancies

years,

de-

Reed, Inc.

With Richard J. Buck Co.
(Special

Booker,

&

were:

Chronicle)

BOSTON, Mass.—Harold A. R.
Waddell

Marshall,

33.

death

Financial

measurably during the past couple

ceased members of the Exchange,

Waddell & Reed Add
The

&

renominated

Renominated to
the

to

Foster

Buford

Lynch,

Total

traffic.

(Special

Chapman, Farwell,
Co., Chicago; Albert

Marshall

as

the contrary, there are
many factors operating to sustain
such outlays for a considerable
time ahead. Many expansion programs are of a long-range character and will carry into, and in

Beane.

made, the

office

Governors

new

Co.", and Winthrop H. Smith, Mer-

office.

day the ticker was in
and
before
any
an¬

operation

as

Dean
Witter & Co.; Homer A.
Vilas, Cyrus J. Lawrence & Sons;
Amyas Ames, Kidder, Peabody &

Exchange

Madison Avenue

(Special to The Financial Chronicle)

^

Foster,

But,

Commit-'many;'cases

Booker; Arthur K. Peck, Walters,
Peck
&
Co.; Harold W. Scott,

,

stalled

Monday,

on

by John J. Phelan.

Governors

Heller & Co., member of the New
York
Stock0 Exchange, has in¬

Ticker in its 601

ofv the

Scott, Scott
Stringfellow, Richmond.

in

Consolidated Inv. Adds

Government

Ralph

were:

Stanley

area,

all adjusted in this manner.

CANADIAN BONDS

the selections

on

May 12. The Nominating

in

defense surtax.
The

vote

Toronto Ticker
Due

outside

are

seems

pated;

membership of the Exchange will

Seattle;

the

to

whom

of

O.

supertax

applied
last July. The corporation income
tax,
however, was the largest
single source of government rev¬

all

beyond.

equipment. This is not to suggest
that a sharp drop is to be antici-

members of the Board,

new

Chapman &

nouncement

income

three

Heller Co. Installs

$809,000,000 remain^.
together with $234,000,-

ac¬

the outlook beyond
year becomes of grow¬

of business

,

Committee

The

the

the

elected to the Board of Gov-

ernors

expen¬

member of

administration and other govern¬
ment activities.

of the Government's cash

and about

are

passes,

1952

ing the tax back to where it was
year ago, i.e., three cents on a

directly and indirectly,

wide variety of collateral indus¬

a

the, tries. Basically, the housing mar¬
ket appears to be good; although
pretty the housing shortage has eased

high rate of

a

cases

some

It

a

of

extent

it does,

-as

and

equipment makers

has

and

Nominated

full

manu¬

nomic prospects.

$650,000,000 for general

the

reflect

equipment,

ing importance for

McKinnon

&

recent

payment. The order books of

the current

Richard M. Crooks

Stock

during

of

plant, the

time

a

partner in the

growers,
manufacturers
the smoking public in recent

in

down

//

normal

and

ditures

terials.

of

tee is headed

not

reduction

to

,

in

tobacco

es¬

months through controls over ma¬

tivity seems assured for 1952 and

does

applied

of

most

New York metropolitan area. The

be

of

well filled and

coming year
are estimated at just over
$2,000,the
nation's
public debt.
This 000,000 for
defense, nearly $1,000,brings the total net debt down by
000,000 for social security and
$2,345 million in the last six years. pensions of various
kinds, $650,The estimated 1952 fiscal year 000,000 for interest on the debt
and
budgetary surplus of $355,737,000
payment to the provinces,
will

periods

been;-held

have

last

defense

Crooks is

tion, which has greatly disturbed

Government

30%
of

and other less

sential construction, both of which

President. Mr.

problem of cigarette taxa¬

Canadian

case

many

commercial

in

involved

are

facture

his

duties

about

final

Keith Funston
assumed

of

the

in

of/^htracts and orders* the.*

G.

n

increase

construction

September
w

compared

betweep-sfho^. £•; Residential building. is a key
^design of new facilities, 'the Iptr; factor in our economy; affectipg

un¬

10,

1952,

spending,;;'Substantial

and

til

in

1951, is likely to be in the
of 5 to 10%, contrasted with

time

as

h e

Also, it may lead to some increase

increase

year.-As

on

Chairman

other public facilities.

spending is at record levels, but
with

an

1951,

President

refrigerators, formerly taxed 15%,
will be exempt.
The net reduc¬
tion in revenue from this change
is estimated at $78,000,000.
The

Prospects

the

Gov-

of

York: Stock

elected

served

Heavy
household
appliances
carrying like stoves, washing machines and

is

Government

defense program, on a scale
somewhat similar to that of our

6

page

and

range

Chairman

May

Ca¬

a

and

is

Board

New

the

Crooks,

first

achievement

view

out

successive years. many other articles
is noteworthy, from 25 to 15%.

six

the

of

of

Exchange.

budget, the excise
consumer goods, including
new

has been ac¬ tax on
companied by a sound fiscal sit¬ automobiles, household appliances,
uation, under which the Canadian tires, tubes, firearms, fishing rods,
Treasury has shown a budgetary jewelry, clocks, golf clubs, and
This

from

hear Term Economic

for

renominated

was

Chairman
ernors

Excise Taxes Cut

economic

the postwar years,
the United States,

of

Thursday, April 17, 1952

.

.

Richard M. Crooks, Thomson &

By WILLIAM J. McKAY

an

.

(1613)

gregate

on

a

goods

has

plateau. On

hand, spending on serv¬
soft goods in the ag¬
has
risen
slowly
but

on

steadily and is currently at record
levels.

Unless
war

hood

we

scares,

have further

there is

wars

little

spending habits of

or

likeli¬

of any signal change in
consumers

the
this

a
in spending

crease

much further. A further

in¬

moderate

However,

year.

.The Commercial and Financial Chronicle

Number 5103

175

Volume

of the year appears

ment

sonal incomes are

where

probable. Per¬
at record levels,

will put even more money

the

into

hands

millions

of

,

Consumers

consumers."

apparently saving about twice
their income

much of
as

after

to

as

the

only major factor
provide

be relied upon to

can

the

years,

the

they did in most

past year,

and

stable

to

back

the

con¬

A

market.

moderately rising trend

or

outlays,

consumer

if

it

de¬

help restore busi¬
confidence and support the

velops,
ness

should

inventory position of

busi¬

many

This

but it will

never¬

Business

against

assurance

in

turn

Inventory

accumu¬

noticeable

became

in

the

1950, in spite of the

and

of consumer buying,
assumed large proportions in

the

first

high levels

then,

half

last

of

year.

Since

inventories

business

have

increased

further, although
significantly slower rate.

and

at

a
.

weaken.

beyond,

trends

notice¬

are

able in the recent inventory poli¬

retailers ' and

of

Retail

turers.

inventories

been reduced
from

manufac¬

by
is.

impression

have

10 to 15%

some

the highs of last

The

year.

that

positions in soft goods have been

well

pretty

adjusted,
of

stocks

some

goods

that

but

durable

consumer

still excessive.

are

Inventories

companies,

of

manufacturing

the

on

have continued to

other

hand,

increase rather

persistently and steadily. In part,
this reflects the growing defense
program and some stocking up of
materials

in

anticipation of de¬
requirements. In part; it

fense

reflects

,

desire

a.

by producers to

keep costs down" arid' to maintain
their

labor

force

production

by continuing
if this
means

even

some

increase in inventories. Also,

some

manufacturers recalled that

they

had

in

severely
ment and

production

cut

the
hen

w

rising:

stop

de¬

to avoid

a

repetition of this experience. This

spending

on

plant and equipment

and residential building

they are likely to display a
sagging tendency rather than to
drop sharply. In the meantime,
ever,

productive capacity will continue
rise; in

rise will
face

key industries the

some

substantial.

be

arise

utilize

to

field, for example. In the

production

durable

prevailing

productive capacity at continuing

high rates?
Of course,

be

devoid

forces.

the
of

The

stantial

cutbacks

in

until

re¬

high

the likelihood of

rising

and

level

nitude

with

Effective
stered
to

private construction.

demand

also

spend

if

indicate

not

larger

a

ahead

does

forced

been under

progress

and

for
the

year

been

made

in

be much prospect that production
ulus

receive

cumulations.
ness

be

important stim¬

any

further

from

A

inventory

world,

tions

although

hence, busi¬
likely to
different
from
not

are

significantly

their present levels.
—

Except

certain

for

to be
discussed
later, the outlook for the next few
mistic
of

in

appears

light. There

factors in

the

a

fairly opti¬

are

a

number

economy

lending

These

to provide substan¬
for business activity.

include

the

projected high

level
of
business
spending on
plant equipment, reasonably good
prospects for public and private

construction

building;

and

and

for

record

residential

levels

personal
a

of

income, combined with
savings that is unusually
and is not likely to grow

rate of

high

be

to

large

in¬

private

by

In any event,

large increase

barring
in

further

a

defense spend¬

increasingly
have to ac-.

tobecome

ment

may

to

ourselves

of

somewhat

environ¬

an

than

less

the

hyper-employment that has char¬
acterized

the

postwar

This need not be regarded

calamity;

a

of

most

the

we

economy

need some slack
in order to im¬

efficiency and to slow down

prove

the

inflationary forces which arise
from full employment. However,
it

may

to

adjust itself to

be

not

for business

easy

normal

a more

pace.




The

liberality

One

garding the
the

of

ness

fairness

an

elec¬

useful¬
employed

and

standards

for

unions.

by

demands

wage

view

In

the

labor

of these

factors,
dis¬
putes
may
well
bring
greater
perils to our economy than any
the

present

of

wave

wage

ket uncertainties which many

in¬

thing
if

reasonably

appears

we

are

continue

to

to

to

spending,

shall

we

maintain

a high
volume
capital investment—
housing, business plant and

private

equipment,
years

like—in

and the

ahead.

Whether

we

the
can

achieve this objective over a sus¬

tained

period,

once

the

pressures

making

It

-would

futile

be

to

predict
how widespread or how farreaching the effects of strikes
upon
production
may
become.
Strikes

in

industries

some

may

hamper the operations of business
and

inconvience

cause

the

to

public in general without serious
harm to the economy in the ag¬

best-reasoned
awry.

ables

Some
are

inherent

to

Such

it

of

prices

and

environment

an

difficult to recap¬
through higher

very

ture cost increases

prices.
is

lijkely

the

Treasury's
benefit from

to
of

round

position
another

increases. In the
companies subject to ex¬
profits taxes, the Treasury
wage

of

case

cess

will

bear

of the cost

most

of

the

decrease
Even if

the expenditure

side, the Treasury
because

lose

also

chases

they
of

much

are

in

were

the

pur¬

now

larger

than

earlier

increases,

wage

its

rounds

and

because

strike
be

to

seem

in

steel
ad¬

more

Protracted strikes in basic indus¬

larger portion of Treasury ex¬
penditures is going for the pro¬
curement of the products of heavy

industry, where the largest
increases

wage

likely.

appear

presumably in other basic indus¬

tries,

that

tions

will

failure

a

lead

Government

negotia¬
seizure by the

to

of

avoid

to

strike.1

a

action, if effective, presum¬

able would entail substantial

con¬

cessions to the labor unions.

The
war

of

successive

to

not

may

of post¬

gradual

dustrial
doubt

productivity, has without

been

the

among

prices

labor,
be

may

the

advantages
attractive as it

as

most

po¬

lower

mean

produc¬

tion and with it, reduced employ¬
ment.
Perhaps the most serious

economic
many

im¬

cause

the

to

go

imponder¬
the

mid-

situation, the

The Political Scene—The forth¬

coming

of this round of wage
increases is the possible effect on
business programs for capital ex¬

pansion.
the

It

is

difficult

conqlusion

with

of

to

avoid

the

that

whole

developments associated

the

current

increases

of

round

wage

he will not be

that,

have the effect of

may

with

leadership.
in

ment

dismissed

a

were

able to pass on
of their in¬

costs, while capacity op¬
erations
and
technological
ad¬
helped

vances

labor

suffer

from

demands and

as

deferred

defense orders sup¬

ported the market.
creases

in

decline

a

long

as

up
the
organized

make
did

Nor

The wage in¬

disseminated

were

quite

rapidly, thus increasing consumer
income and
buying power, and
the Treasury benefited from in¬
flated tax receipts. The only real
sufferers in the process were sala¬

question

whether

round

in

Present

this view

International

prove

accurate,

Developments

The record of the

not be the
which everybody loses.

prospects

will

now

corporate

are

increase in
come

profits.

1 Editor's Note:

in

fur¬

a

wage

part

out

One hurdle

Subsequent to delivery

of Mr. Reierson's address,
man

that

President Tru¬
and ordered

seized the steel industry

the companies

to continue

production.

im¬

too

from

ap¬

an

the outlook.

personalities involved,
nonetheless

are

im¬

some

portant areas where there is con¬
sible

various

for

room

problem which is likely to
the fore pertains to the

One

to

come

and

size

character,
defense

of the
is
one

pace

This

program.

under

on which, except
conditions
of all-out war,

question

made

that the defense program be

responsive to the needs of
civilian economy has many

more

the

sound

in

arguments

its

<

some

in

that

dangers. One danger is
desire to maintain

r

favor.

involves

also

it

However,

^

The demand

of view.

points

con-

differ- '

siderable leeway exists for

ing

pos¬

of action.

courses

civilian

our

we may not arm as
is necessary to assure
security. Another danger is

production,
rapidly
our

as

the

that

future

not

geared

some

with

operation,

of

defense

spending

military

require¬

of

amount

at

degenerate into

may

WPA-type

a

the

effort

defense

date

to

ments but to other considerations.

Another

of political debate

area

which may lead to

profound con¬

in¬
and
bounds of government activity in
for

the

volves

Decisions

abroad.

will

size

of

home

at

the

affect
and

budget

mat¬

these

on

importantly

in

and

support

financial

and

ters

metes

proper

welfare

social

military

economy

our

the

conse¬

quently the rate and incidence of
taxation.

fundamental

The

past two years

clearly demonstrated the sen¬
sitivity of our economy to changes
in

the

international

armistice

in

Korea,

anticipated,

long

An

arena.

though
likely
to

even

is

strengthen the forces of deflation
and

readjustment; this would be

a

normal and expected

reaction, es¬
sensitive
com¬

pecially

in

modity

markets.

the

Furthermore,
especially if fol¬
some improvement
in

armistice,

an

lowed

by

the

international

would

probably increase the dis¬

content

of

present

tax

the

atmosphere,

public

the

over

cut

ment for the maintenance of pro¬

duction, prices and employment.
principle that in the event
a pronounced economic depres¬
sion, the government will take
The

of

defense. Such

spending

a course

of develop¬

day when
will have to learn to

live without the dynamic

still

supplied

by

a

and

to

the

other

de¬

we

der

is

of

international affairs.

is

of the

ever
many

world
Such
do

may

dan¬

into

violence.
if they

developments, even

not

would

The

present that some
trouble spots in the
erupt

lead

to

a

Administration
full

employ¬

to
accept
moderate
flucutations in business
activity. The former has been the
case in the postwar period, and its,
inflationary
implications
have
been
amply demonstrated.
The

willing

cyclical

latter

make

would

markets

competitive
create the

need

for

for

and
even

more

would
greater

flexibility
and
adaptability
in
business operations, but would be
beneficial

the

to

velopment of

long-range

de¬

sound and healthy

a

economy.

With Lagemann & Son
(Special

to

The

Financial

Chronicle)

QUINCY, 111.—Lloyd E. Sellers
is now with Lagemann & Son, Il¬
linois National Bank Building.

Two With E. E. Mathews

unfor¬

tunately cannot ignore the pos¬
sibility of a further deterioration
ger

an

maintain

impetus

growing

hand,

However,

hyper-employment un¬
all conditions, or whether it

(Special

On

accepted.

all-important differ¬

an

ment and

for

ments would hasten the
the economy

now

whether

ence

to reverse the
generally estab¬

action
by

is

there

burden,

government

for

sibility to be assumed by govern¬

and would
doubtless lead to greater pressure
to

problem

the future is the degree of respon¬

—

has

of

round

govern¬

is

there

trend is

pertinent

may

substantial

costs
of

seventh

increases

wage

ther

this

seems

of

economy

entirely

vigorous

ac¬

substantial portion

national

our

role

parties or

strives

corporations

in

Although
many of the political trends are
running strong in our economy,
and will persist regardless of the

favorably

significantly impaired in the ag¬
gregate; under the favorable mar¬
ket conditions hitherto prevailing,

our

praisal of

lished

Corporate profits were not

the results of
1953 will start

year

The

a

portant to permit this factor to be

inflationary factors in our the outcome would impair an es¬
So far, however, they sential support of continued highhave been achieved without un¬ level production.
tivity.

the

change

a

Should

tent

economic

candidate, mean

a

regardless of

the polls,

darkening the outlook for invest¬
ment
by American business.

economy.

affecting

with

together

elections,

the President's announcement that

consequence

series

increases, far in excess
increases of in¬

wage

the

rounds

scare

sequences

Even

tries, on the other hand, would appears on the surface. Unless
bring a period of reduced business the underlying market conditions
activity, followed by a resurgence become much more favorable than
once
production
was
resumed. can be anticipated today, higher
There is, of course, the possibility,
at least in the case of steel and

probably some renewal
buying
by consumers
and business, and a resurgence of
inflationary pressures.

economy,
of

a

further to aggregate the situation.

short

materials available to the civilian

siderable

Nor

equate thati is generally realized.

The

20th
century
economy;
others
happen to be particularly revelant
at the present time. Three of these
imponderables deserve considera¬

tion here: the labor

income.

deferred demand

no

levels

fense program.

conclusions

of these

present

inventories

Economy

fraught with
ponderables that may

goods, including automo¬

biles: there is

might not be too significant; steel

A

gregate.

up deferred
demands
providing for the defense ried
employees, particularly in
middle
and
program have been satisfied, is 'the
higher income
at best an open question.
brackets, and those living on pen¬
sions, annuities, and interest in¬
Some Imponderables in Our
come.

Any appraisal of the

consumer

Thus,
instead of helping to solve our
budget problems, the current
round of wage increases is likely

of

outlook is

of

case

will

dustries face today.

employment

and

dent than in the

durable

in
corporate
profits.
companies are not subject
of the previous differences be¬
to excess profits taxes, the Treas¬
tween
union
managements
and ury is likely to be a
loser, on bal¬
business managements since the
ance, since the tax rates on cor¬
end of World War II. The serious¬
porate profits now are higher than
ness
of the
situation is further on the
personal income that will
enhanced by the increasing mar¬ result from
the wage increase. On
,

Government
have

re¬

by that agency; at the same time,
it
has
set
even
higher targets

difference.

for

con¬

business managements

enjoy satisfactory levels of busi¬
ness
activity without large-scale

of

rela¬

the

of

creased

certain:

to be revised

wage

cessions recommended in

ing, the economic environment is
likely

is

(2)

of

round

labor-management

our

tions.

Such

which

will continue
tial support

must

vestors.

of

imponderables,
months

it

conducive

not

are

foreign

ac¬

year

inventories

Summary

of

kept in mind that political condi¬

some

a

has

adjusting inventories to sales in
many
lines. At the same time,
however, there does not seem to
will

percentaige

pres¬

about

for

real

bol¬

decide

disposable income. Further¬
there is a tremendous need
capital investment throughout

as

liquidations with their depressing
effects
on
production. Inventory
sure

be

more,

years.

widespread

positions have

might

consumers

their

out¬

months

con¬

struction cannot compare in mag¬

sub¬

The outlook for business inven¬

the

a

public

of

construction, although public

in

in

the exist¬

increase in

ments suggest

more

put.
tories

will not
stimulating

economy
some

ing shortages in facilities of the
Federal, state and local govern¬

civilian

of further and

cently,

goods,

sustained by the

was

w6

increasing

our

competitive. We

expectation,

Thus

question: what factors will

a

custom

consumer

to

appear

their cyclical peaks; how¬

near

has probably been a factor in the
of

ex¬

will

dynamic to a sus¬
Both
business

a

textile
case

it

factor.

mer¬

recovery ';

veloped; they wished

to

adjust¬

1948-49

had been short of

chandise

too

the

likely

are

Defense spending is

to

change from

inventory

in

the

of

among

of

some

forces

taining

to

Contrasting
cies

proportions.

modest

it

control

the ef¬ wage concession.
The second hurdle is the market
in¬
creases which is now shaping up.
place. Market conditions for most
With the telegraph and tele¬ goods are now significantly dif¬
phone operators already out on ferent from, those which prevailed
strike and the steel furnaces [as in
the
postwar years, and the
this is written] being banked in prospects are that some markets
anticipation of a strike, it is evi¬ may become softer in the future.
dent that we face a crucial period Nowhere is this change more evi¬
production; and

makes

fu¬

that

companies will be permitted to
pass on the total amount of any

has created further serious doubts

1952

be

possi¬
bility of increased labor difficul¬
ties and consequent interference
the

although

assumed

to permit some price increases, it
does not seem probable that the

upturn in business will be of

any

relatively

ing the short-run changes in busi¬
activity.

im¬

of

are

(1)

concern:

control:

standards will have

However, it is probable that

ture.

pected

latter part of

of

situation

labor

mediate

aspects

at

policy is one of the most volatile
and significant factors determin¬

lation

level
near

As the economy moves into late

Inventories—Inventory

of the

Two

—

price

tion year by the Wage Stabiliza¬
tion Board in the steel dispute

supporting

ness

ap¬

real down¬

any

the
aggregate
activity in the

business

concerns.

ness

combination of forces

to provide reasonably good

pears

Labor Situation

with

dustries.

tear

wear,

obsolescence, and leads

sumers

of

means

scene.

fects

'

of time

passage

generally

stimulus

theless be large and it will go
mainly to support the heavy in¬

sequently, a further increase in
savings is not probable. Also, the

is

litical

projected

is the

economy

increase in defense spending. This
increase will be less than during

before World War II. Con¬

years

inventory situation
gradual adjustment has

a

important additional

an

taxes

they did in the postwar

and more than

that

international outlook, and the po¬

the

However,

of
are

now

in

been in process for about a year.

and the current round of wage in¬
creases

reassur¬

ing development is the improve¬

the course

in

27

(1619)

general

war,

m^an a speedup in defense
production,
larger
cutbacks
in

to

BOSTON,
Craig
now

53

and

The

Financial

Mass.

J.

—

Arthur

Chronicle)

Russell H.
Dager are

with Edward E. Mathews Co.,

State

Street.

Wester green
OAKLAND,

#

in Oakland

Calif. —Ernest E.
is engaging in the

.Westergreen
securities business from offices at
3539 Kingsley Street.

>,

).

28

The Commercial and Financial Chronicle

(1620)

Continued

Farley, Green V.-Ps.
Our

Of Albert Frank Agency

Reporter

'v

;

could

securities

additional

these

out
;;

in the

Adrian

been

have

Green

elected Vice-Presidents of Albert
Frank-Guenther Law,
been announced.

half years service
Pacific.
Prior thereto he

and

the

one

for nine years

was

the Oxford
ilfork.
:

in

Co.

New

after four
Chemical

Warfare

Previously

Army.
a

joined AFGL in 1946
years service with the
branch

of

the

had# been

he

There

member of the advertising staff
the

of

une"

York

New

for five

"Herald-Trib¬

years.

Hear Adm. Fechteler

;

•[: Admiral William M. Fechteler,
United
Naval

.

•

Navy,
Chief
of
Operations, will address

The Bond Club of New York at

a

meeting

to be held at
the Bankers Club on Friday, April
*25, it was announced by James J.
Ij&s, W. E. Hutton & Co., President
of The Bond

Club.

Of Albert Frank
Pa.—Francis

X. Martinez has become associated
with Albert Frank-Guenther Law,
Inc. as Director of public relations
the agency's Philadelphia
fice, it is announced.

an

of¬

Reynolds Adds to Staff
to

The

they will be available at
a

of 50

Financial

trades

are

Building.

as

contrasted

of

a

very

satisfactory Government market

aid
U.

bonds.

securities

E. C. A.)

will create

business activity

level of
is bound

the

as

to cease,

spending

soon

as

On the

ceases.

other

neighbors

the

by

and

Eliminating Snags Between

various

attempt to put their ex¬
in order, so that goods

no

East and West

freely from

There

that
ment

to

behavior of
the

Great

free

the

the victors

of

War, the U.S.S.R.,

United States and
world

imperative,

so

Mobilization

uncompromising

one

dollars for

find

it

in

the

the rest of the
necessary,

nay

to

spend billions of
defense.
Eighty-three

cents out of every dollar budgeted
by the United States, goes towards

paying for past
the

present

can

there

no

too

are

many

snags

peaceful adjustment, suggest¬

a

ing that force

Worldwide Defense
Because of the

be

rapproche¬
between East and West, be¬

cause

cided advantage of all concerned?

maintain

who

those

are

there

and into those countries to the de¬

the

tension.

most

resolve

alone can

Such

attitude

an

is

disturbing. One is reminded
reply Bismarck made to a

of the

critic

of

the

German-R
were

i

negotiations

a n

than three-

more

on

which

in

manner

u s s

carried

Asked
in cer¬
with Russia,"
the
Iron
Chancellor
replied:
"There is more than one snag in
quarters of
"if there

a

century ago.

were

not

tain negotiations

a

snag

...

supporting
euphemistically it, but politics is the art of elim¬
inating snags."
toward the war

wars,

war,

a cold one,
in Korea which is still

Applied to present day condi¬
designated
police action, and tions, Bismarck's observation sim¬
towards preventing a new war. ply
means:
If
those who are
Other countries, too, are obliged charged with guiding the political
destinies of peoples and with re¬
to expend large sums for defense,
sums far in excess of their
capac¬ solving international disputes and
ity. Hence, their dependence upon controversies, throw up their arms
continued U. S. aid. Although such in dispair, and say it cannot be
assistance is generously rendered done, it is incumbent upon the
to the free world, it is also granted peoples affected to replace these,

Eligibles in Demand

officially

State

a

nation avowedly anti-Rus¬ with statesmen who will and
Thus,
Communist
Yugo¬ achieve a solution.

slavia

and

totalitarian Spain

Wars

are

also found among the recipients of

long and

wars

American dollars.

and

While American funds

Commercial banks, it is
reported, continue to give preference
WesPite advancing quotations), and the
longest issue
of September, 1967/72
The 1956/58s and the
1956/59s
appear to follow next in line, with the
2%s due 1960/65 as accept¬
able as ever,
especially when they appear in
fairly sizable amounts
as
they have a few times recently.
It is reported the Pacific

are

being

can

frantic

or

have

preparations for

never

solved problems

will.

never

Peace is the most

constructive force

on

earth.

In an

atmosphere of peace devoid, of
world, the overall economy of the fear.over a new conflagration, the
United States is bound to remain implementation of Point Four is
made available to

,

elilibll maJklt.Middle"^eSt ba"kS haVe been quite

as

sian.

to any

„

,

our

Government

changes

and bond business.

funds have been in both
the
short market for investments.

municipal

high

hand, POINT FOUR ex¬
are
disquieting. penditure is equally bound to cre¬
ate a high level of business; but

and

and services may flow

6/15/62-67 and the 2V4S due
6/15/59-62, have been rather sizable.
no very large blocks of bonds have been
involved, there
have been a number of
fairly good sized deals reported which
when added together, account for
considerable volume in these
securities.
It is also reported that
commercial banks have been
making forward commitments in the
near-eligible 2M>s and 2V4s

same

coun¬

to

successor
a

must

given
S.

made

Ranking right behind the demand for the eligible issues, if
such is the case, is the
buying which has been going on in the
near-eligible restricted bonds. The acquisition of the
2y2s due

these

assurance.

governmental agencies, they have

.^ls.
s. done much to help the market action volume and
activity in these securities.
Pension funds, both
public and pri¬
vate, have been buyers of the restricted
issues.
Savings banks
and small insurance
companies have also been in the market for

and

and

could

confidence

with

undertaken

devel¬

areas

quiring why, with all the financial ices.

an?t

STATE

be

world and the

of backward

this will continue, even after the
find, in confused spending ceases, because the re¬
currency markets, a source of such cipients will have created pros¬
high profits as to discourage or perous economies of their own,
combat their discontinuance. One out of which they will be able to
may therefore be justified in in¬ acquire American goods and serv¬

position

Although

u. s. treasury;

war-torn

opment

which

conditions

is

called

Near

have the

we

a

almost compelled to con¬
clude that many in high office or

favor¬

with

being consummated not

mar¬

to the dollar.

pesos

exchange
equally chaotic

One

long
ago. Also, dealers have been more active,
trading has picked up
and inventories are being built
up here and there.
While it may
be too early yet to make
predictions, there are more of the signs
appearing every day which have in the past been the ear-marks

Chronicle)

WINSTON-SALEM, N. C. — M.
Stewart
Robertson, Jr., is now
with
Reynolds & Co., Reynolds

were

In between

tries,

few of the commercial banks have

being put together

now

engage in reconstruction
development work on a large

or

as

/ In other South American

however, to make the Government bond business a more inter¬
esting business than it has been in the recent past. Some very good
sized

heartedly

to

mercial rate of 60.10 to the dollar,
and the special commercial rate

While volume is getting larger, it still has a
long way to go
before it gets to the more normal levels. It has been
sufficient,

rather insignificant ones that

possible

To be sure, expenditure through
banking market rate of 43.10 to
the dollar, the provisional com¬ M. S. A. (Mutual Security Agency,

,

more

is

high of 92.80 to the dol¬

a

ket rate.

lengthening of maturities by the de¬

Not

it

lar for what is called the free

quite successful in their dollar averaging on the way down,
but they are, nevertheless, not
showing any signs of reluctance
now in expanding purchases of certain issues on
the way up.

'

(Special

able levels in the future.

now

the dollar for the official

pesos to

posit banks is the need for larger earnings in order to keep pace
with growing expenses.
Also very important is the belief that
prices of the higher income obligations have now turned for the
better and purchases should be made at this time because there is
not too much likelihood that

is

and the peoples
in the grip of
fear over a new catastrophe. How
can nations seriously and
whole¬

transactions

rate, to

been

Martinez Joins Staff
PHILADELPHIA,

for the

which

two hostile camps,
of the world are

scale, if what is built today, may
at
profits be
destroyed tomorrow?
high as 430%.
If a way could be found, or a
In Chile, the importer also con¬
method discovered to resolve the
tends with a multiple exchange
system.
Rates vary from 31.10 existing tension, the restoration of

two

reason

rate

too,

amounting to

as

The main

Here

effect

Developing

,

States

luncheon

lar.

T

are

seems

market

(March 25) about 26M> to the dol¬

segments to the current Government market,
though the eligible sector is still the more favored
one despite the increasing competition that has been
coming from
the restricted issues, especially the near eligible obligations. The
commercial banks, with some help from dealers and traders, have
been giving the eligible issues more than a passing amount of
attention.
To be sure, this type of activity is concerned mainly
with the intermediate and longer term, because the shorts are being taken for entirely different purposes, even though it involves
most of these same operators.
i
and it

NY Bond Club Will
:

black

shorts, the intermediates and the

stricted issues.

to the

dollar, respectively.
In addition, there is the so-called

issues, despite the need to move out into the higher yielding
bonds in order to get income with which to keep pace with en¬
larged operating expenses.
Funds that have been finding an out¬
let in non-Government obligations, are now being channelled
more and more into Treasury securities which give the most favor¬
able return.
This goes for the bank eligibles as well as the re¬

Mr. Green

market, equivalent, in terms
dollars, to 7.50,5, and 14.43

pesos

after

associated with

Paper

'

areas.

Argentine

been

remains divided into

free

expanding Government market, this time, volume-wise,
as well
as
price-wise, continues to make friends and influence
the people that have funds to put to work.
Activity has picked
up in the middle and long maturities as the near-term obligations
hold their own.
This means the shorts are still the most sought

Mr. Farley has been with the
since 1945, following his
discharge from the U.S.N.R., after

have

of U. S.

An

t

developed

1951,

However, it is difficult to con¬
paying for ceive of the successful
implemen¬
shipments with three rates, the
tation of such a program, so long
preferential, basic and so-called as the world

to hold the spotlight again, even though competition

Broad Market

•'

August,

importers

May and June eligible restricted bonds has

Inc., it has

agency

three

the

Since

been very
keen.
The highest income ineligibles have not been far behind,
because investment buying has made them rather popular obliga¬
tions of late. '■ ;
'
V' "■
V'--"
1

and

Jr.

Farley,

M.

D.

appear

from

"George

longs

Farley, Jr.

transactions.
•

"

The bank issues, that is the
Adrian M.

in

have recovered from the
bills, because it found
be very readily absorbed

an

market.

Point 1¥

while the 9 to the dollar to expend billions for peace and
rate applies to remittances on ac¬
reconstruction?
This' they
can,
count of registered capital. In ad¬
through the so-called Point Four
dition,
the Bank
of Paraguay program which calls for American
charges a commission of 1% on all aid to undeveloped and under¬

unfavorable effect upon either the shorts or
the long issues.
Temporary price run-downs were followed with
higher quotations and larger volume. Funds seeking investment
in both the eligibles and the restricted obligations appear to be
increasing. As a result of this, volume and activity have expanded
and although both are at restricted levels when > compared with
past performances, they are nevertheless, showing signs of a re¬
covery, which is not having an unfavorable effect upon sentiment
without having

13

goods,

surprise of larger offerings of Treasury

-

page

Thursday, April 17, 1952

.

Peace and Profits Through

The Government market appears to

-

'7.

Governments

CHIPPENDALE, JR.

By JOHN X.

is

on

from

.

.

at

a

the rest of the

feasible

high level. Trade will expand,
work
will be large; cor¬

porate
will

active in the

profits,

be

certain

even

after

taxes,

substantial.

And

while

branches

of

the

nation's

be

practicable.
The
throughout the

done

is enormous, and for years

world

to

and

to

employment

the

come

bound

to

United

the

be

States

only

is

country

which can supply goods and serv¬
not be affected and
ices on a large scale, with corre¬
in consequence experience
setbacks, the overall picture will sponding profits to the. American
economy/
remain satisfactory. *
Statesmen,
both / here
and
What Will Happen When Foreign
abroad,
worthy
of, the
name,
Aid Ends?
might to advantage stop blaming
What will happen to America's each other for the existing fric¬
economy and to that of the rest tion,
and reexamine world con¬
of the world, which has come to ditions with a view to resolving
depend on U. S. aid, upon the ex¬ the raging cont roversy. The
piration of American assistance, is Chinese have a proverb which is
economy may

Halsey, Stuart Group
Offers Equip, Tr. Cffs.
Aubrey G. Lanston

Illinois

& Co.
INCORPORATED

IS BROAD

Halsey, Stuart
associates

ST., NEW YORK S

are

&

Co.

Inc.

and

offering $4,950,000

Central

RR.*

Co.

2%%

equipment trust certificates, series
35, to mature semi-annually Nov.

:

l5^he certificates

the

secured

are

Diesel

to

cost

$6,631,995:

WHitehall 3-1200

01 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

/




8

Passenger

7 Diesel Road

Locomotives;
Switching Locomo¬

tives; and 35 Diesel Yard Switch¬
ing Locomotives.
Associated with Halsey, Stuart

&

Co. Inc. in the
offering are—
1, 1952 to May 1, 1967, inclusive, R. W. Pressprich & Co.; L. F.
at prices to
yield from 1.95% to Rothschild & Co.; Freeman & Co;;
3.00%, according to inaturity.- Is¬ Ira
Haupt & Co.; The Illinois Co.;
sued under the Philadelphia
Plan,
the certificates are offered sub¬ McMaster Hutchinson & Co.; Wm.
ject to the approval of the Inter¬ E.,Pollock & Co., Inc.; and;Greg¬
.

-

by

following railroad equipment

estimated

:

state

may,

Commence •„ Commission.;... ory & Son, Inc.j.

f,

<:

-

difficult to tell.

predictions

have

All

sorts

been

of dire

made:.

If

American legislators can be pre¬
vailed upon to appropriate billions
for

war

and defense,

why should

eminently applicable to the ex¬
isting-state of affairs: -"Do not
curse the darkness.
Light a can¬
dle."

* Let

achieve

us

this

all

and

endeavor
save

5-\ it not be possible- to persuade them from ..utter destruction.

to

mankind
.;'

Lsr.

Volume

Number 5108

175

.

.

.

The Commercial and Financial Chronicle

(1621)
\.

t

sey-Robinson Company, a partner¬
ship which succeeded in 1912 a
business started by J. M. Gambill

News About Banks

in 1874
Mr.

NEW

OFFICERS, ETC.

REVISED

a

Roanoke

Active in

business" affairs,
charter member

and

Junior

Chamber

of Commerce and President of the

CAPITALIZATIONS

<\m

the

of

Bankers

and

flour mill.

a

Lindsey is

BRANCHES

NEW
<

as

community

CONSOLIDATIONS

Virginia State Poultry Federation.
*-.

"•

'

Impact of Rate Increase

; The
voort

election
as

of

Paul

and

Ver-

R.

Assistant Vice-Presi¬

an

dent of The Marine Midland Trust

.real

Maser

Mr.

activities.

estate

has

headed

the

construc¬

tion

Company of New York, has been

loan
division,
while ' Mr.
Brunie has been head of the real

announced

estate

by

President.

merly
of

James

G.

Mr. Vervoort

Blaine,
for¬

was

Assistant Vice-President

an

Bankers

Trust

Company and,
prior to its merger with Bankers
Trust Company, of The Commer¬
cial National Bank & Trust Com¬

of New York.

pany

He is

past

a

President of

Bank

Credit Associ¬

ates

York

and

of

New

of

Robert

Associates,
New York
Chapter. More recently, he was a

Speculators

Associates.

Arthur W.

Chase

York,

McCain, Vice-Chair¬

City

of

National

New

President
the

Bank

York,

was

elected

of

Union

National

Bank

effective

of

less

than

*

Bank

Edward

of

L.

New

Nelson,

ulinvJ'i

1,:

$3,022,000,

merger appeared in
issue of March 20, page 1204.
*

*

b

yf

'

.

*

,

displayed

?' °.n e^P®ct^ions

,

National

income
adjust¬
profits
cases,
this

wav

l™
+khalf of the agSregate net income
y high or if the decision had reported for the calendar year
^ fhl
1951, wbich b^ a11 normal stand!00Kea lor- tenner ot tnese is ards was a good year. Most of the
4^

?

increases will presumably

Except for
where there

affecting prices, most rail stocks $190 million to net
are

selling

a

direc¬

,

.

quite

low

relation

in

the

current

Bank

of

Dans-

Rochester,

of

bank

reported
and those

is

mon;

Halsey, Stuart & Co. Inc. heads
a

group

,

Ale

x

who

110

ander,
April

on

named

was

of

Chairman
Board

the

Arthur W. McCain

of

*

Directors
as

*

A

senior executive officer of the

consolidation

of

two

New

bank.
Mr.
McCain, Jersey banks, viz. the Citizens
National
Bank
&
Trust
Co.
of
started
his
banking
career
38
Englewood (common stock $300,.years ago as a clerk in the Bank
000) and the Northern Valley Na¬
,of Jonesboro, Ark., his boyhood
tional Bank of Tenafly (common
home, following graduation from
stock $150,000) occurred on March
Washington & Lee University at
31, and was effected under the
Lexington, Va., in 1914. In the
charter of the Citizens National
ensuing years he
gained wide
Memphis

Bank

banking experience in Chile, Ar¬
and

Bank of New York and the

National
McCain

Bank
in

1928

of

the

of

Vice-President

stock

a

(par $60

$5,540,000

National

and

1929

in

he

continued

as

A
the

a

consolidation

Trust

Vice-President in Chase's foreign

of

is

'

reported

National

Allenhurst,

Bank

N. J.

„

'

of
&

(com¬

ships

JtAlso>
& Trust Co.

specific

for
no

increase

at

granted

rnstaUed^TpSidTnt ofTeVah-

.

„

,

...

.

forma Bankers Association, group

these few exceptions'the

were
Tt

i<3

the

5, for the 1952-53 term at the
spring meeting held April 14 at
Dletelv
the Ambassador Hotel, Los Angeles.
Others elected to office

manv

nv

c0mSon

g

r SnSf

Stnu?1 It

granting

/onsiderabfe

^Merchants National
Vice-President
Llovd I
Anstfn
^

the

rate

that

AneeTe? See/
MaeLan^ Assistent
Union

Bank

;

&

interest.
awarded

from

the

sale

of

of

common

stock

will

be

and to pay for a part of the com¬
pany's construction program. The

company

com-

the/e

and

estimates that

expendi¬
additions,
extensions
improvements to its proper-

tures

re-

for
-

--

ties during 1952 and 1953 will
It is the gregate about $32,900,000.

delay in getting

increases,

the

analysts
coupled

ag-

,
For debt retirement purposes
the bonds may be redeemed, be-

with the automatic wa^e reduc" ginning in 1955, at prices ranging
tion of one cent

n+

Rod

that

so

were

applied to temporary bank loans

the

railroads'

the

'he needed rate relief
'''*i^r«S?fS*iJ^i/''belief of most railroad

j

shares

on

railroads

alone

went

with

accrued

bonds'on theTr bid'of 10<U7%!

Proceeds

With

VMrq

and

underwriters

$7,000,000 bonds, 15,000 shares at
4.80% preferred stock, and 288,208"

given all they had asked for.

*

first mortgage bonds^
3y4%, due April 1, 1982,

100.76%

The

commodities.
is

cbarges for certain services.

Vice-President,
v

*

Allenhurst

TT„fiiffSo«if
on
ank

each); surplus of
undivided profits retary,

*

foreign department. After
National Park was merged with

Neuschaefer Viee-Presi-

PaulE

dent of U

tional Bank of Los

of not less than $190,000.

the

Chase

Englewood

has a capital of $540,000, com¬
posed of 9,000 shares of common

Park Bank of New York in charge
of

of

Englewood. The consolidated bank

Mr.

appointed

was

Co.

Northern Valley National Bank of

First

Boston,

Trust

and under the title of the Citizens

in New York City.
After 12 years in South America
branches
of
the
National
City
gentina

&

series F,

rupting existing market relation-

*

will continue

who

and

of underwriters offering
Wisconsin
Power
&

$7,000,000
Light Co.

A

capital of $1,000,000 was re- proceedings
they could hardly
common
stock
of
$77,870; pre¬ ported by the Pacific National have been any hlSherBank of San Francisco, Calif., efThe Commission did make some
ferred stock "A" of $32,130 par
fective on March 27, the amount minor exceptions to the general
value
(retirable value $64,260);
having been increased from $600,- percentage increases allowed That
and preferred stock "B" of $7,500
000 as a result of a stock divi- is always to be expected if for no
par value
(retirable value $15,dend of $400,000.
other reason than to avoid dis¬
000).
' \

suc¬

Vance J.

ceed

taxes in

is

Nalsey, Sioarl Groop
Offers Utility Bonis

as

Y.

N.

,

will

after

This

year.

a

.

April

on

into

go

isolated instances, effect by the first of May so that
are outside factors they could contribute as much as

weekly Bulletin of March 31 had

tors

On the

tht
taxes in individual
*he market. Thls so°n ,?a,ve ™ay would work out to $325,440,000
.fulu? Pr^ssure. Such reaction net on an annuai basis. This
as7 whole wem unreasonequivalent to almost

1 he

Company

meeting of the
bank's

should aggregate $678 mil-

creases

10. As of May

at

.

...

rJLirnilciin6 S
lion. on an annual basis.
rilr™iT- rtLZ basis of Present Federal
wl I
L nntf™ tax rates' but wi**1011* any
Ln «?L Li?! °f ment for possible excess

$200,000 com- higher rates. As for the rate decicomprising the sion itself, the provisions could
primary
organization are G. R.
hardly have been disappointing to
became effective as of February
Pulley, President, and G. R. Pul- anyone.
The
increases
granted
29, under the title of the latter.
ley, Jr., Cashier.
were higher than had been anticiThe Dansville bank, according to
*
*
*
pated—in fact, in these particular
the Comptroller of the Currency's

Tenn

*r-

a rives.
v °n tbe basis of industry esti.that mates the most recent rate bl¬

in

villc, N. Y. into the Union Trust

Memphis,

,

make them part of the
permanent

™te structure when the time

If+u

+

Cin-

April

the proposed
our

are

stock

under the charter and title of the

formerly of the Bowery Savings
Bank,
has
joined
the
Union
Square Savings Bank as Assistant

Farmers

of

k

n

a

*

Savings
that

Treasurer

Planters

B

National

Ohio,

investors

and

hardly/
•,en1i;SSU?1!1CxT it.a Cba^F on to earnings and dividend yields, an amount to be lightly shrugged
April 7 for the Northwest National
Moreover, in contrast to what may off with a half hour rally of the
charge of the se¬
Bank of Oklahoma City, Okla., is
be
expected this year in many rail stocks.
curity investment department.
' V
indicated m the weekly Bulletin
*
*
*
industries, railroad dividends
of the Comptroller of the turcould well be increased this year
A merger of the Merchants &
rency. The common capital of the even without
the benefit of the

the

of

Personal

•

First

cinnati,

common

according to advices in the March
It is announced by Randolph H. 31 Bulletin of
the Comptroller of
Brownell, President of the Union the Currency. An item bearing on
Square

*

of the Board of Directors of

man

the

*

the

the

a

consolidated with

was

latter, the common stock of which
Trust Department, both of which
prior to the merger having been
units have been merged in the
$6,000,000. At the effective date
banking department. Mr. McLees,
ed the consolidation the First
who has just returned from active
tional Bank of Cincinnati had a
duty with the Army, will rejoin
capital stock of $6,375,000 conthe bank's New York and New
sisting of 637,500 shares of comJersey banking group, while Mr.
mon stock, par $10
each; surplus
Smith will be
assigned to the of
$14,625,000 and undivided profbank's Empire State office.
its of
*

National Director of Robert Mor¬

*

of

$500,000,

not

Morris

ris

division

wood, Ohio, with
of

Carrier Earnings

on

*

.

The First National Bank of Nor-

an

hour that went

from

100.72%

to

100%

for

and

into effect April

5f£°rd a,ver? other PurP°ses at prices ranging
background for radroad from 103.76% to 100%. ^
■
sePU"tles/
Wisconsin Power & Light Co. la
..

.

.

.

.

The rate case lust decided dates engaged principally in supplying
Secretary
Rudolph
Ostcn- b^^-^ about 13 months. In it the electricity and/or gas in 32 couitgaard,
Assistant Vice-President, ?arr*ers had asked for a blanket ties in southern and central Wis¬
consin.
Of total
California Bank, Los Angeles. Fol- increase, including the usual mioperating reve¬
nues in 1951 over 91% was
derived
lowing usual association practice,-J?01! exceptions, of lo%
in all
Trust Co.

of Los

Angeles; Assist-

ant

mon stock $100,000), and the First
department specializing in com¬
from the sale of
electricity, al-f
National Bank of Eatontown, N. J. outgoing Group 5 President Frank freight rates.-In ita first , decision
modity loans, particularly cotton
D. LeBold, Vice-President of the m the proceedings the Commission most 8%
from the sale of gas
and wheat. In 1934 Mr. McCain (common stock $80,000), effected
in the and the remainder largely from
under the charter and title of the Citizens National Trust & Savings granted increases of 9%
was assigned to the bank's
com¬
in the+ South and the sale of water. The territory ^
Allenhurst National Bank & Trust Bank of Los Angeles, will serve East and 6%
mercial
banking department in
West> giving recognition to the centered around the cities of She*
Co. According to a recent bulletin as Treasurer for 1952-53. /
charge of Chase's commercial and
more stringent condition of some
boygan and Fond du Lac, Beloii
of the Office of the Comptroller
banking relationships in 11 states
a' ■.•VA''.'-".."'of the major railroads in the East. and
Janesville, and Beaver Dam
of the Currency, the consolidation
The
First
National
of the Far West, and later, in ad¬
Bank
of The final decision
equalizes the and Portage.
became effective at the close of
Nevada, at Reno, Nev., as a result differential, giving the South and
dition, supervised the bank's busi¬
business March 21; it is further of a stock
Among those associated in the
dividend of $500,000, West an additional 9% ,over rates
ness in New York State and New
stated that the consolidated bank
enlarged its 'capital effective prevailing in March 1951 and the underwriting are: Gregory & S04
Jersey. In April, 1946 Mr. McCain
will have a capital stock of $500,Wells
&
Co.;
was elected President and a direc¬
March; 25
from
$1,500,000 ,/to East 6%. .So now, the railroads Inc.y" Mullaney,
*:r
tor of Chase. He continued as 000, in 20,000 shares of common $2,000,000.
/ /,' ;
" /
throughout the country have been
& Co*
stock,, par $25 each; surplus of
President of the bank until Janu¬
granted the blanket 15% increase
$100,000 and undivided profits of
ary, 1949, when he was appointed
/As a result of a stock dividend they had originally requested,
not less than $50,000. '
Vice-Chairman of the Board of
-y
\ of
$5,000,000,; the First National'
In the proceedings the 15% in\
Directors. He tendered his resig¬
Bank of Portland, Ore., increased creases
have not been made a
In accordance with plans noted
nation as an officer and a director
its capital effective at the opening permanent part of the rate strucat the Chase Board of Directors in our issue of Feb. 7 (page 586), of
business April 1, from $7,500,- ture.
They are characterized as
B. J. Van Ingen & Co.
The
Lincoln
National
Bank
of
Inc., 57
meeting on April 9.
/000 to $12,500,000,.
"surcharges" to the basic rates and
*
*
*
:William Street, New York City;
Washington, D. C., has increased
are set to expire in February 1954.
its capital from $400,000 to $800,announce
that Walter
B.
Hen+
:
S.
Sloan
Colt,
President of
The v original
increases
granted
ricksen
has
become
associated
Norman Dacey Adds
Bankers Trust Company of New 000; $200,000. of.the increase re¬
_

_

•

•

-

.

t

-

i

#

.

I

Henricksen Joins
B. J. Van

.

,

Ingen C®,

,

■

York

announced

election

of

on

Herman

April 15 the

sulted

from

Maser

while

the

G.

as

-

a

sale

.

stock

of

dividend,

new

(Special

to

The

Financtal

Chronicle)

stock

195?

As

a'practic?! matter^how^

with the firm in ?ts sales dePart-

BRIDGEPORT, Conn. —Dudley ever', the present temporary na- was associated with
ment Mr. Henricksen formerly
Blair, RoI-»
$200,000 to M. Amoss has been added to the ture of the increases
appears of
the $400,000 capital. The enlarged
lins & Co. Inc.
same
time,
announcement
was
staff of Norman F. Dacey & Asso- little, moment.
The Commission
made of the election of Charles capital became effective April 1.
has fully recognized the needs of
ciates, 114 State Street. ■ > •
*
*
*
H. Brunie, Joseph R. McLees, and
the carriers for additional rev¬
With Prescott & Co.
Vice-President of the bank. At the

Irwin

.

,

served to add another

C. Grattan Lindsey, Jr., Presir
Assistant
S. Onde:- dent of Lindsey-Robinson & Co.,
elected Assistant Treas¬ Inc., has been elected a member

Ward

Smith

'

as

Coburn Middlebrook Add

Vice-Presidents. George

»

enues

to

offset

the

constantly
l

mounting spiral of wages and fuel
and material costs. .Unless there

(Special, to

:
The

t

Financial

Chronicle)

(special to Th"e Financial 'Chronicle) r !
CLEVELAND, Ohio—James El
is
now
HARTFORD, Conn. — John J. is a reversal of-,this inflationary Martin
is
now
affiliated
with
ginia in Roanoke.
A
native of Ferrante and Vito A.. Mastromat- trend, which certainly at the pres- Prescott
& Co., National City
Mr. Onderchek will be associated
Roanoke, Mr, Lindsey is the son teo have joined the staff ..of Co- ent does not appear in the cards, Bank Building, members of tba
with the banking department' in of Charles G.:
Lindsey, Sr.; one burn & Middlebrook, Incorpo- the Commission could hardly re- New York and Midwest Stoob
the handling of construction loans of the original partners of Lind- rated, 100 Trumbull Street.
fuse to extend the surcharges, or Exchanges.
_j
iS
,
^ ^

chek

urer.

was

Mr. Maser, Mr. Brunie,




and

of the board of The Bank of Vir¬

.

,

30

The Commercial and Financial Chronicle

(1622)

lected in taxes.

.

*

the

,

...

4

We See It

As
Had

Now, of

the President's

crocodile tears not blurred

vision he would have noticed that over the sweep

lenders, the net outcome, for
the time being at least, might be a
process of robbing
Peter [the investor] to pay Paul [the
steelworker]. This
would, it seems to us in the circumstances be unwarranted

his

of tj>e

dozen or so years — that is, since late prewar
days—the hourly earnings of the steelworkers have risen
very, very sharply, and that along with all other industries
the steel industry has increased its rates of pay faster than
the cost of living has risen. Even since Korea the hourly
earnings of the steelworker have risen faster than the
cost of living—and even if the cost of living had risen
faster than wages the remedy is hardly to be found in
action which can be counted on to push the cost of living

It would, however, for the im¬
mediate present at any rate, avoid the
building up of an
overall inflationary potential as a direct result of the*
wage increase.
"V
.

before

have

case

The rank

in for

file

and

important aspects of the
full share of public discussion.

a

of the

He

seems

to sup¬

that if only there is no increase in the price of steel,
no inflationary potential would or could be brought into
existence by the higher pay he says the workers should get.
that such

increase

in

would or
would not have an inflationary impact depending upon
whether or not there is any increase in steel
prices as a
result of it seems to us to go about the limit of economic
nonsense.

Let

us

turn

to

an

the facts for

a

pay

The

moment.

steel

industry, according to the American Iron and Steel
Institute, reported for tax purposes in 1951, income of
some $1.9 billion
against $1.5 billion in 1950. From the
$1.9 billion the companies will be obliged to pay $1.3 bil¬
lion in taxes

on

that income,

leaving them

$668 mil¬

some

lion in

earnings for the stockholders who put up the funds
bring the industry to its present state of efficiency and
productivity. In 1950 they had to pay the Federal Gov¬
ernment some $777 million in taxes on a taxable income
of about $1.5 billion.
to

,

Now let

all

that the "package" demanded by
the industry only $250 million, or some

us suppose

the union costs
such amount.

This

things told, but

the

same

seems

our

to

us

to be far too low

a

figure,

calculations would work out about

in any event.

What we are supposing is that
profits of the steel industry are lower in 1952 by
some
quarter of a billion than they otherwise would be.
the

Now of this quarter of a

billion, the steel companies if

they

were permitted to record this as taxable earnings
(rather than to pay it out in wages and the like) would
be obliged to
pay the Federal Government say $200 million

in taxes.

wage bill—or should we say a
labor unions?

funds, instead of going into the "profits"
of the steel
industry, are put in the weekly pay envelopes
of the rank and file of the
steelworkers, very little of them
...will find their
way into the Federal Treasury as income
taxes. For practical
purposes we should be risking only
minor error to
ignore such taxes as these altogether. In
a
very real sense, then, we can say that for each
quarter

billion the steel
wages bill is raised in this way, not
the steel companies but the
a

general public, will put

up

upwards of $200 million to meet the added
costs, this
assuming of course that the President succeeds in pre¬

venting the companies from getting more than say three
^dollars a ton increase as a result of the higher wages paid.
What

happens in the long run is that the taxpayers
pay these wage increases, not the individual
companies or,
as would be the case if
prices were raised, not the users

of steel and of
products made of steel. Now let us push
this matter one
step further. Are these added burdens to
be assumed at once

by the taxpayer?

If

so,

it could be

political debt

Continued

from

11

page

.'

-

.

;

,

.

....

Vishinsky
produced

ganda
is

the

in

value

forego the Collection of hundreds of millions of dollars
from the steel industry and to go to the
general public




which had

the

with

not

been

"Temps,"
particu¬

larly friendly to American inter¬
Some difficulties

ests.
of

all, I

of

Second,

what

the

viewed

me

First

arose.

obliged to make'an

was

outline

I

had

to

editor "'who

say.

inter¬

was

obliged to obtain
the. consent of his editorial
board,
because an interview with
any¬
one from "Wall Street" was
some¬
what

of a novelty, and it had to
carefully written since it would

be

most-surely

draw

fire

from

the

left

wing and the.. Communist
press. About five weeks after my
was

,r

published

under

somewhat

seem

re¬

Union

";The sub-heading

2

record

2

is

made

Oil."

in Com¬
the U. N.

by

the

gallery, who for the most

part were junior journalists

and
stenographers
working
for the
French communist press in Paris.
No
equivalent verbatim record
was
maintained in the
English

although
formal
Congressman Mike

language,

speeches

by

Mansfield

of

Montana,

dele¬

our

gate
in
this Committee, were
mimeographed and distributed.,
We have mentioned

discussion

about

briefly the
miners'

copper

That is just

islolated
incident.
On another day there
was a long diatribe by the Iranian
wages.

against

delegate

Chairman

the

one

the

Anglo-Ira¬

Oil Co. in which he accused

nian

the

and

of

Board

of

Directors

having published a
criminally untrue operating re¬
port in the London newspapers.
The

he

as

shook

Iranian

literally

with

emotion

his

out

screamed

The British delegate, of

charges.

answered but he displayed
unfamiliarity with the oil busi¬

course,

and

ness

did

He

economics

in
general.
point out that if the
charges
were
true, • a

not

Iranian

simple

remedy

was

Can it be possible that Na¬

and

under

open

a
hunger of the belly?
something for our intel¬
lectuals to ponder.

Long-Range
It

false

statements

with

for

respect

to

it

Anti-"Rockefeller"

Again
erties
of

was

made

the

oil

of

them

which

was,

as

properties.
that

is

turn

by

was

largest

the property of

was

in

It

the

Petroleum

trolled

be

may

that "Mr. Rockefeller"

these

mentioned

Creole

were

subject of attack.- The

expected,
not

subsidiaries

companies

propaganda line
owned

Smearing

Venezuelan

the

Company,
90%

over

Oil

Standard

of

all

to

of

you,

2

tee

me,

is

discredit

to

American

con¬

New

the
N.

U.

to

world

as

to

and

in

of

authenticity.

that
all

similar

a

in

Summer

of

We

ECOSOC

were

advised

procedure went
the

in

1951

Geneva,

on

session

Switzer¬

hundred

which

thousand

do

can

harm abroad.

American

great

a

deal

It becomes less

of

sur¬

material

for

and this subse¬
given the title: "Wall

was

Street's Vested Interest in Peace."
It

was
surprising to me that this
type of material had not previous¬
ly been made available abroad

despite

the acute
necessity for
something like this. The realiza¬
tion

of

this

situation

frightened

me.

Classifying

which

give such attacks the semblance

background

interview,

quently

the

use

framework

a

The

attention
into

Propaganda

second

task

the

was

various

Tricks

which

needed

classification

categories

of

the

propaganda tricks used by Messrs.

Vishinsky, Malik and their

asso¬

ciates; It

Here Dr. Isidor Lubin, Eco¬

is, of course, elementary
psychology that classification, ear¬

Adviser, and Messrs. Stew¬

marking, identification and label¬

art and Murden of the U. S. dele¬

ing raise one's threshhold of tol¬

land.

nomic

gation had Mr.
U.S.S.R.

their

as

There

nent.

Arkadiev

is

of

principal

little

the

oppo¬

doubt

that

the Soviets

The

erance.

unknown

frustrates.

The Polituburo and its agents use

special

a

type

of

hate

language,

through careful moni¬
toring transcribed the proceedings
at each session, selected the ma¬

particularly in its attack

terial

know that the

they

wished in - order to
their prefabricated doc¬

support
trines

then

and

sent

around the world to

nist

parties

and

unions which

the

are

it

the

out

all

Commu¬

Communist

members of the

W.F.T.U.

to which

referred,

and

previously

we

which

is

in

effect

the international communist union

holding
is

company. This
of attrition.
Its

one

be

may

operation
objective

amputation. It seeks to
us
of .our friends,
the
for

of

sources

our

raw

products,

materials

can

skilled

They
have been at it for 34 years. They
are
trained
revolutionaries,
se¬
lected, among other things, for
their objectivity and ruthlessness.
They must feel confident in the
knowledge that they almost lit¬
arm are

men.

erally). have
in

the

U.

S.

much powef.

very

In

of

view

it

became

might be

two
in¬

investments in other parts of the

tasks

world

are

going dif¬

dividual might perform as a non¬

ficult

as

publicized

Americans

Soviets have pros¬
entire cultural appa¬

They have done
sciences.

No

with

so

art, the

biology and

one

other
have

to

seems

realized that they have also done
this with economics. In
fact, they
have

twisted

nomics

and

that

so

distorted

eco¬

it is difficult

even

for professional economists to de¬
code

their

would

language.

serve

our

Perhaps

it

call

to

purpose

new

weapon, "Propa-nomics,"
being the mongrel offspring

of evil propaganda and fraudulent

economics. It is

an

of the Soviet hate

might

we

important part

language which

call

"Commichat."

Kremlin propaganda
into eight categories
my

version of them:

to fall

seems

and

here is

•;

»

First, the false label trick. This
includes many terms which
been made familiar
by the

had

speech¬

and
writings
apologists:

es

of

Communist

Warmonger: Anyone who! is
willing to defend himself or his
country, if need be by force of
from Soviet enslavement.

arms,

Aggressor:
tion

Anyone or any na¬
opposing Soviet imperialism.
f

People's Democracy: A totalita¬
rian

all this,

the

informed

drama, music,

this

The Politburo and its prop¬

wait.

aganda

tituted

this

They

well

World.

ratus into the service of the State.

the

individuals. It may take a couple
of years, it may take 5 years, or
it may take 10. The men in the
Kremlin have patience.

Most

the

upon

economics of the Western

needed

our

no "opposite number"
'".True, we have a
stockholders. In the light of this Psychological^ Strategy Board in
Washington, hut it seems to be
it
is
easier
to
understand
that
under new leadership every few
propaganda, agitation, subversion,
months or so.
It does not have
bribery and blackmail are tools

Jersey, which is owned by several

the r;

holdings and investments through¬
out

industrial life and to
take away in one form or another
the assets of our corporations and

another day the prop¬

on

of

American

Objective

clear

that the long range
propaganda objective in Commit¬

as

to sustain

securities.

be

must

markets

penalities

of the mind

idea

an

is

deprive

severe

is

not

This

Neverthe¬

Section.

less, verbatim records are main¬
tained
by
Soviet
sympathizers
in

thing more. It was neces¬
to write a memorandum to

provide

tionalism

Exchange."

One
sary

staff, although a rather full sum¬
mary
is available through the
Publications

Caracas,

Countries Which Work Their Own

what goes on

of

mittee

of

newspaper

reads "Venezuela Should Join the

plenary sessions of the
Assembly, no verbatim

General

leading

a

the

to

was "We

do."not.want war; says M. Byfield

proceedings

the

Unlike

Soviets.

Committee

in

inestimable

of

Guatemala.

ready and willing to

but

of the New York Stock

Washington are predicting a whopping deficit this
They are saying that we shall have to meet a

sub¬

interview

me

the conservative
newspaper which
was the successor to the

ing, might.

.

American Business

vs.

obvious that there

very

for

markable. I quote them herewith:
"Wall Street answers the Soviet

prising, moreover, that American

stantial part of the cost of
government this year by bor¬
rowing. This seems to be another way of saying that the
Federal Government this year is

arranged

delegation or

-an

first contact with "Le Monde" the

that the increased income to the
steelworker might largely
be deducted from the current income
of other
groups,
thus preventing or
thwarting the growth of any infla¬
tionary potential. But the fact is that the authorities at
year.

Embassy,

the headlines which in this
gather¬

prescribe

Now if these

S.

.interview,

the British Companies Acts which

Who Pays?

of

to help

money

people of this country could

stabilization line of his Administration.

notion

If this should

creating fiat

other

pose

This

steel

militant

to

hardly be excused for not knowing and, within reasonable
bounds at least, understanding the facts concerning them.
There are certain other aspects of the case of which the
same can not be said, or at least so it seems to us.
This
latter is particularly true of the inflationary considera¬
tions involved. The President, of course, says that the
wage advances recommended do not breach the wage

.

should in effect be

we

pay a

come

great many months have passed?

a

occur

Other Aspects
some

4

But who believes that the banks, Reserve and com-,
mercial, will not be called upon to help finance the deficit

higher.

All these and

.

enough in all conscience.

Fiat Money for Wages

U.

was

Diplomatic Editor of "Le Monde,"

dividuals and other nonbank

past

even

if the Government borrows from in¬

course,

Thursday, April '17, 1952

.

ed with the American

asking it to lend the funds that might otherwise be col¬

Continued from first page

.

.

government

taking

orders

from Moscow.
Fascist State: A totalitarian
gov¬

government observer during the

case

of

finding the
the

in

the

well

United

It

Fruit

Co.

in

is

all

this:

was

ness

Ideas

such

extreme

ochism,
highly

as

form
are

with

one

another.

Iranianism,
of

economic

contagious.

prosperous

that
mas¬

Even

in

Venezuela,

a

recent headline in "El

Universal,"

which I

roles

current session

important to
realize that these phenomena are
not
local but global in nature,
connected

or

and

so-called
had

to

an

in Paris. The first

tremendous propa*

drife; against

ganda
and

The

as

Wall

American

be

Street

big busi¬

answered

quickly

effectively.

One

of

the

not

taking

orders

important

from

Moscow.

Profiteer:

Anyone who makes

profit.
Peace:
ness

and

military

'
A condition

•

of

might

of

a

-

helpless¬

indefensibility before

Union;

the

the

Soviet
.

French

daily newspapers
most

ernment

seemed to be the
effe^|v^^ed>jim.^ Accord¬

ingly, through parties "not connect¬

Peace-Loving: Any nation, peo¬
ple or individual willing to co¬
operate with Moscow.

Number 5108

175

Volume

Bandwagon Methodology

Reactionary: According to Gen¬

Kotikov,

one

who isn't

reactionary is

a

Monopoly: Any corporate enter¬

Monopolist: A businessman.

A

genuine petition. Then
there is the bandwagon method¬

businessman.

Not

Wall Street:

private property.

War:

necessarily the phys¬

Not

clash

of

on

men

conven¬

a

propaganda,

tional battlefield, but

assassination, blackmail,
pressure,
infiltration,
agitation, kidnapping

intrigue,
economic

try or

cite this sort of thing as
rather

The act of a coun¬

corporation in investing

a

ing

of

an

apologies to the Ancient Mariner.
We

Circles: Anyone with a

there

terms

the

how

This is natural because

it is the symbol

of

free, private

a

Vi¬
shinsky, Baranowsky and Kiselev
never
say
"profits," but always
"gigantic,"
"tremendous,"
"new
and
greater," "fabulous," "exor¬
bitant,"
"extortionate,"
"uncon¬
scionable" or "skyrocketing" prof¬
its.
"Capitalism," is hardly ever
enterprise

are

of

"freedom

is

them

of

amazing

simply

that word.

others with subtleties of their own.
One

dirty

more

Communists and left-wingers hate

count double.

these

right here

say

has had

noun

no

is

It

house
corporation whose shares are
listed on any exchange. National
City, Morgan or Dillon Read af¬
or

Besides

well

as

adjectives hung on it than "profit."

change firm, an investment

■'

might

that

in Washington who has ever
worked for a bank, a stock ex¬
job

filiations

Albatross

adjective around the neck
expendable noun," with due

dirty

whatsoever.

Ruling

the

is

fourth

trick, which consist of "hanging a

The act of invest¬

abroad for any purpose

money

and
practical

Messrs. Acheson, Eden

is

believe

Schuman

a

production

not

is

a

he

lone

label

definition.

or

.

Kremlin to

It

Second is.the Dwarf*aird Giant

given'fact appear large
whichever is desired,
by comparing it with a selected

The

absolute.

lifting

to

context

document

or

prac¬

phrase or a sen¬

a

of

out

doctrine

buttress

point is

a

example of the Lone Tree trick.

Lincoln

Abraham

and

other

are

made to look small by

alongside

made

be

can

Or again he

giant.

a

look

to

Koreans and the Chinese to smear

by

large

the UN.

In

plain language, when

standing him next to a dwarf.
Mr. Baranowsky of the Ukranian
S. S. R. used this when in one of

ceeds

his UN

make it appear

a

profits of American
rations
of $18.5
billion
rent

decade and half ago which
Statistical
manipulation of this kind has un¬
limited possibilities and is one of
only $3.4 billion.

General Romulo of the Phil¬

the most common methods of con¬

Soviets

trolling judgment.

tions

The

to

goal

of

make the unlike
The

tical.

cists

this trick

professional

as

hesitancy

to

be

opposed

credited into

as

a

or

to

be

dis-

■

framework of ref¬

which everyone hates,

.

past.

legitimate

a

social

act.

turning

the

to

made

are

trick

the

Upton

is

Sinclair
depicted

have

-Similarly we have seen handling
of the words "corporation" and

no

clock

They

present seem like the

from

*

Ma¬

Social abuses long since corby evolution or by legis¬

Machine

"profiteer" in close junction sets
up a desired confusion, and may
serve to arouse a hostile attitude
toward

Time

appear

though they still exist.

.

'The

,

the

is

reeled

lation

such

sin, greed, corruption or envy.
use of the words "profit" and

na¬

Communists have

in

the

make

'

erence

Western

back to suit their purposes.

an

^attempt to place something that
is

seventh

chine trick.

semanti-

this process

describe

The

is

iden¬

appear

the

against

usually mirrored their own

intentions.

Siamese Twin

is the

third

The

attor¬

ippines threw an interesting light
on this type of propaganda when
in
a
recent
speech before the
General Assembly in Paris he in¬
dicated that the charges of the

year a

trick.

the district

smear

and the plaintiff in order to

ant.

year

with the selected figure of a poor

was

to

he pro¬

no case

that he himself is
the plaintiff and not the defend¬

corpo¬
a

guilty party has

ney

speeches he compared cur¬

used

writings

of

and
some

as

The Time
in

quoting

Steinbeck,
others who
of

the

less

attractive aspects of our American
in the past.

scene

*

recognizable

easily

contaminating
In

latter.
the

act

ation;

The eighth, the last, and per¬
haps the most important of all, is
the ABC trick, a semantic device

interchangeably with the

"trust"

-

a

of

so

the

sense,

objective
former

of

which

with

indictment by associ¬

has

strategy
r

carrier

of
an

would be the exact op- signed-to

-posite—whitewash by association.




had

application.

this would be

•

Soviet

been

slogans

convincing to

billion

a

people, more or
less, at least for the time being.

the negative version.
offer

benign slogan

a

which

Just

is

to

all

cure

the

'being

scapegoat idea as well, this

as

you

symbol

or

the troubles

of

the
world, so you offer its
quick, packaged, opposite number.

The

a

good

old

simple
for

atom

progress

scapegoat
Street." It is

"Wall

ABC, but

Western

bomb

this,
the

more

do, some.of the statements of

the

is

the remedies

serious

most

and

difficult, but the out-

far

obvious

from

that

hopeless.

write

cannot

we

It

is
a

program in a few minutes. All we
do here is to make

can

gestions.

few sug¬

a

If it is to be dealt with

properly the burden of handling
the

attacks

of

the

Soviet

ganda machine will fall

propa¬

It

the

wide

is

and

basic

Kremlin,

subtle

in

historical! appeal

influence

the

for

it

de¬

hundreds of

millions of people throughout the

Here

are

a

few suggestions

nation

and

coordinate

ganda.

subject

competent

of

personnel.
a

mean

the ranking

cabinet

ward

with

interest

Administration

an

is

the

welfare

of

man?"

common

mentioned.

Yet

Let

stand

us

and be

up

against the charge of widespread

social

almost

and
made

universal

monopoly

by Mr. Arkadiev at the 1951

a

government
our

in politics, in diplomacy, in
work and perhaps also in
public relations. Often one looks
in vain for any training or expe¬

Mr.

economic

Arkadiev

can

sit

back

and

people who

law,

rience in economic

in politico-

or

This

matters.

is

note¬

worthy in view of the fact that
to refer to some of the charges the great global clash of ideas in
which we arfe engaged today is
of Congressman Emanuel
Celler,

grin, because all he has to do is

Chairman

the

of

Monopoly Sub¬ that

committee of the House Judiciary

a

Concentration

of

on

Productive

Communism

Aprpos of this
I

vs.

should

like

'Capital¬

in

and

to

proverb which
trate this point:
"If you
seeds

the

closing,

quote

Polish

of the report of the

copy

of

ism.

pos¬

sesses

illus¬

wish to protect the

against the

birds,

you

don't send in the chickens

Fa¬

old

an

will

as

guardians."

Funslon Galls NYSE Members Attention to

Amended N. Y. Abandoned
In

enough.

a

letter

York

right

collectivist
crea¬

this

like

addressed

to

mem¬

bers and member firms, G. Keith

Funston,

difficult than

careers

session of ECOSOC at Geneva. Yet

necessary

organization

an

gathers the im¬

one

are

the

the

into

Admittedly

resentatives

Property Law

have

we

not

be

ical sketches of many of our rep¬

in international

organization and
are

and balances like

President of the New
Exchange,
called

Stock

attention

to

act

an

enacted

at

the 1952 session of the New York

broker

or

dealer

tomer.

with

such

cus

*

"Provided, however, that if am
specified in this section i
or included ii

amount

reflected, recorded
an

account with

Legislature, amending the Aban¬ such broker

or

respect to whic.

dealer has

on

fil

repre¬

doned Property Law (Chapter 461,

evidence

checks

Laws of 1952),

within the five years immediatel;

a

of

appropriation for
aganda and information is

which will require

the payment to

own.

oM-

(2)

italism.

And, again, Dr. Isidor Lubin
ably defended American business

might

government would find the

sentative

tions.

propa¬

It

placed

must

authority

less

never any precau¬
You wait for bad news be¬

have made

officer charged with

personnel

much

plan;

pression that they

position for

the execution of the tasks

of

his orders.

on

(6) And last, but not least, let's
stop apologizing for American cap¬

"Do you want to carry the Taft-

This needs legislation and

the

even

tion

as

our

on

hands.

fol¬
if you
Never

you

left,

Day address in Detroit he stated:

Federal Trade Commission

efforts

There

aside

or

fore you act."

It

(1) We must organize ourselves
a

fixed

turns

right

acting

were

upon many

your own.

born of my own experience:

as

If he

low him to

ple in the President's 1948 Labor

Committee, which has been blast¬
ing corporate managements un¬
involve the efforts not only
mercifully with charges of monop¬
of government, but of those en¬
oly practices for many years. And
gaged in
private industry
and Mr. Arkadiev most
assuredly
shoulders, including

trade.

there.

you send help there.
Thermopylae you run

a

government

Serious Problem

in summarizing all of
venture the opinion that

is

our

is at

agencies
and
government officials? For exam¬

own

whose

than

World

itself.

situation

lock

they constantly

Chersonese,
If he

—

so,

we

naturally
make any

if all the Soviets have to

do is to quote, as

the
Most

And

are
we

Hartley law to its full implication
counted, and let us be represented
and totally enslave the working
abroad by men who understand
as men, while-collar and union man
our system and believe in it pas¬
lethal alike, or do you want to go for¬ sionately. Examining the biograph¬

universal

as

the

Chile. Such charges
absurd, but how can

of all the world's trou¬

cause

bles— the

able

examples.

per¬

a

a

It

The sixth is the Court Room
ordinary, height may be
placing him .trick. This is used by the North

of

son

example,

For

out

Quoting from historical personal-:
ities
such as Thomas Jefferson

a

fact.

pointing

forest of ideas.

and,

of

an

small,

other

of
a

isolated

a

The essence, of this trick is

to make

in

ancient,

tence

trick.

Or

consists
tree

tice

nition.

the

have

to

seem

will

the

this type of defi¬

use

the lexicon of social

goes

philosophically
speaking, it involves the fallacy of
is

the tricky purposes of the

serves

>

so

This

word

abolition; of

false

a

"disarmament"

always "aggressive warfare."

The fifth is the Lone Tree trick.

rearmament,
reduction of armament. This

the

uses

doing in

"warfare"—

revolution.

armaments." When Mr. Vishinsky

means

is

is not merely

And

of

control

and

What

it is

"limitation, regulation, bal¬

anced

UN

the

ism."
Korea

solution of the disarmament ques¬
tion is

Nevertheless,
half

Messrs.

economy.

speech," and when a Communist
uses this phrase he merely means
"freedom to print the propaganda
line of the moment." Again, the
used alone. It is always "monop¬
Soviets have mislabeled and
oly
capitalism,"
"finance
capi¬
twisted the word "disarmament."
talism" and "imperialistic capital¬
What

This is

burdens

The ABC trick comprises

The

sources.

Imperialism:

cilities written in 1947.

panacea

their

of

-

rape.

capital abroad to develop raw ma¬
terial

by large masses of peo¬
are true.
We might
compound
than
simple
intellectual

Neither

ple.

shakedowns.

Colonialism:

a

arrived at

subversion,
and

a

them

know

capitalism, free enterprise

of

ical

relieve

or

in the past tense. You all, The realties for the cure of which take a few illustrations. Last fall 315 B.C., he said:
the hackneyed phrases of these slogans are offered in the
"Shame on you Athenians for
in the UN
at Paris
the Soviet
Communist propagandists such as, sole interest of the Kremlin are,
propaganda machine kept hammer¬ not wishing to understand that in
of course, much more complex. To
"as is well known," "as everyone
ing out the charge that American war one must not allow one's self
knows," or "it is common knowl¬ answer" some of these problems corporations
employ "slave labor," to be at the command of events,
edge." The assumptions here are there is no quick formula, nor a not
only in their domestic busi¬ but to forestall them. You make
that a plebescite has been held to
magic solution which in many in¬
ness, but in their foreign opera¬ war against Philip like a barba¬
begin with and that certain com¬ stances has confronted interna¬ tions as well.
We have already rian when he wrestles. If you hear
mon
tional bodies for over 50 years.
judgments have been freely
referred to
this in
the
case
of that Philip has attacked in the

nor a

financial mechanism, but the sym¬
bol

quick

piring in the UN and its commit¬ classic broadside
accusing Amer¬
tees, as has been the case in the ican
industry, if not of widespread
and responsibilities.
To achieve past.
monopoly, then at least of oligop¬
their
purpose
the
Communists
(4) Our men holding or aspiring oly, meaning the Big 2, the Big 3,
have designed a series of decep¬
to high public office should avoid the Big 4 in various
industries,
tive slogans to serve specious ends.
intemperate attacks upon Amer¬ and so on.
Some of them are plausible and
ican business for political reasons.
(5) We must assume the of-*;
all of them are simple. You will
Our representatives or delegates fensive.
Merely answering the
recognize them as "end to the in
attacks does not pay. Perhaps the
foreign service and in the UN
armaments race," "prohibition of
have had a difficult task telling best quotation from the classics
the
atom
bomb,"
"all
foreign America's story.
They should not to illustrate this point is from the
troops out of Korea," "land re¬ be
needlessly hampered or ham¬ first philippic of Demosthenes. In
form," and "unity for Germany."
strung in these efforts.
Let us his address to the Athenians about
answers

ology

street,

a

identi¬

made to appear

was

cal with

important

very

In this case a fake pe¬

example.
tition

nessman.

peti¬

peace

cleverly devised some years
by the Kremlin is a classic

ago

busi¬

Millionaire: An important

yearning for sim¬

are

31

.

Stockholm

notorious
tion

Billionaire:

bandwagon

known

methodology is really a variation
of the Siamese Twin trick.
This

Communist,

a

well

The

any¬

prise.

and

world who

to

eral

-

(1623)

ple

it."

do

r

negative and the other a

a

positive transfer.

and

want

we

One is

"You let us do
then help us

Cooperation:
what

The Commercial ancl Financial Chronicle

.

.

.

prop¬

York

of

the State of New
unclaimed prop¬

certain

in

writing

receive

preceding the 31st day of Decem¬
ber preceding the date sucl

cash dividends, in¬ amount would otherwise be pay¬
balances, held able pursuant to section 512 thaithe person entitled thereto had
that it amounts to about $150,000,- by brokers and dealers for cus¬
tomers.
The amendment of the knowledge of such account, then
0G0 per annum. In contrast to this
law
is effective
April
1, 1952. such amount shall not be deemed
the Soviet Union and its satellites
However, its provisions are ap¬ abandoned property."
are reported to be
spending close
Mr, Funston calls attention to
to
unclaimed property
to 10 times this amount. Perhaps plicable
received in New York State after the fact that under this definition
they are spending as much in
there
June 30, 1946.
are
included
only
such
France alone, a key country, as
The
definition
of
abandoned amounts as are "received" in New
we spend in all parts of the world.
as
contained
in
this York State. Prior to Mar. 10, 1953,
There are plenty of ways in which property
and each Mar. 10 thereafter, pay¬
amendment is as follows:
other less important government
"Unclaimed property; when ment to the State Comptroller
functions can be curtailed in orwill be required of all property
.der to find funds for this purpose. deemed abandoned. The following
unclaimed
property
shall
be which on the preceding 31st day
fully inadequate.

woe¬

We understand

(3) Business must not leave the

task

to

government.

There

do

individually

and

as

terest

a

as

credit

and

of

deemed abandoned property:

are

things some of our leading
corporations and trade associations
many

can

erty, such

"(1)
this
a

state

broker

such

amount

Any

after
or

June

dealer

broker

or

or

nominee of

dealer

as

the

outside of government

ef¬ holder of record of a
security re¬
forts and also in cooperation with
maining unpaid to the person en¬
the government.
One of the best
titled thereto for five years fol¬
laboratories for working out such
lowing the receipt thereof.
a
program would be the forth¬
"(2) Any amount received in
coming sessions of the UN and its
this state after June 30, 1946 due
affiliated organizations. This will
group

December

"abandoned

was

in property." A report in form pre¬
30, 1946 by scribed by the State Comptroller

received

must be filed with the Comptroller

at the time of such payment.

Under

the

Law

a

broker

or

dealer who has paid to the State

Comptroller
may

abandoned

property

elect to honor the claim of

the person entitled to such prop¬

erty

and file

a

claim

for reim¬

change in present from a broker or dealer to a cus¬ bursement with the State Comp¬
State Department policies. Corpo¬ tomer which has remained
The
State
Comptroller,
unpaid troller.
rate
managements,
particularly to the customer for five years upon satisfactory proof of such
those with overseas interests, must
after the date of the last entry, payment shall, after audit, reim¬
increase4 their ideological aware¬
ness.
If this is done there will be other than the receipt of dividends burse the broker without deduc¬
call

no

for

some

further

excuse

that

any

of

or

interest in the account of such

tion of

a

service or other charge.

£

32

The Commercial and Financial Chronicle

(1624)

and basic chemical compounds,

Continued from first page

Gulf Coast area, a

The Chemical

cent

Industry's

650-mile cres¬
the
Rio

from

in the south to the Mis¬

sissippi in the east. It is here that
the raw materials — natural gas

Stake in Petroleum

-

stretching

Grande

is find

Texas-Louisiana

the

in

located

and refinery

gases—are

available

it

logical to be in the petro¬

leum chemicals

field. Our activi¬

in this field

ties

those

are

products which

rived

basically

from

confined

•

petroleum

i

gasoline.
As this demand in¬
creased,
gasoline,
rather
than
2oexosene, became the premium
product and means of increasing
its yield
from the crude were
mmghL
This search resulted in
the development of the cracking
process which not only increased
jgasolme yields but also increased
the yield of the then unwanted

materials

diversified uses

as more

created for them.

are

should

We

to

this sub¬

leave

not

ject of gas values without calling
attention to the flares which one
flares

These

refining

in

burning

sees

areas.

safety pur¬

for

are

to provide a means of dis¬
posing of the gases generated in

poses

operations in the event
in the gas collecting

refining
of

failure

in

normally

systems

Arthur-Beaumont

Pilot

use.

Texas

of

area

Ethyl
Corporation at Houston, to duPont
at Orange, and to other nearby
but

plants;

this

even

operation

not be

practicable were it
not for the concentration of con¬
in

limited
all, of the
big names in the petrochemical
industry are represented in this

sumers

a

relatively

territory. Most, if not

Coast

Gulf

area.

addition

In

to

lights which consume a very small

Ethyl and duPont, already men¬

quantity of gas, are kept burning
provide a source

unusual

these

under

another

was

which

one

has been successfully met by engi¬

normally available neering endeavor.
These examples have been used
of equipment and
of my familiarity
processes closely allied to the oil because
with
business. We prefer to sell on a the processes mentioned. I think
bulk or wholesale basis to manu¬ that they are significant because
to

by the

us

use

their

own

in each

cal

case a

the first case,

explored; in
that of high pressure

synthesis

pressure

at

eralfold

higher

levels sev-

for¬

those

than

and

the

in

second

tem¬

at

case,

peratures far below those used in
the

industry.

There

-

the

is

question but what
these problems

no

of

solution

served

stimulus to the design

a

as

equipment to serve under un¬
conditions, and
this has
in making available to

of

usual

resulted
the

petroleum and chemical in¬
equipment and techniques
otherwise might have been

dustries
that

delayed for several years.
Major Outlets of Petroleum
Chemicals

asked to

Not long ago we were

principal petrochemicals
their major fields of use. The
the

name

Practically all of the companies,
matter how varied

was

merly used, at least in oil refining;

production.

New Industry Is Growing

no

of chemi¬

area

new

processing

the

supply ethylene to

would

them

conditions

materials

raw

injlarge quantities. Some of these
sorts per day.
Working together, in terms of their alternate use in gases do not lend themselves to
tbey have set about to solve this petroleum outlets, which quite of¬ large-scale
transportation.
The facturers who will use our prod¬
problem of raw material short- ten results in assigning a relative¬ basic raw material, ethylene, for ucts as basic raw materials for
ly high value to them. Take, for example, on which many of our further chemical processing.
agea
In the third category are the
Had
the
petroleum
industry example, propylene which is used petrochemicals are founded, can¬
to make isopropyl alcohol. This not be shipped long distances ex¬
chemical manufacturers and rub¬
been called upon to supply these
at prohibitive
cost. It is ber companies, some of whom,
ctaemical raw materials 30 years propylene is of value to the re¬ cept
finer both as liquefied petroleum moved economically by pipe line,
like Union Carbide and Dow, pro¬
ago, it would have been totally
tunprepared. Petroleum chemicals gas and for polymerization to a but only over relatively short dis¬ duce olefins and other hydro¬
which has pre¬ tances. A 30-mile ethylene pipe carbons for sale as raw materials
is a recent chapter in the history liquid fraction
mium value as an octane blending line from Texas City to Baytown,
•of petroleum refining.
and for their own use in produc¬
Back in
component of motor gasoline. It Texas, has been in operation for
1859 when the first oil well came
ing a varied line of chemicals
therefore definitely is not a waste about eight years. Up until the from
in, the principal use of petroleum
petroleum,
thus
further
or by-product gas.
was Chat of burning
present time this is the longest narrowing the line between the
its kerosene
The advent of the huge cross¬ distance that ethylene has been
fraction in lamps; the gasoline
strictly
oil
business
and
the
fraction was a troublesome by¬ country gas pipe lines carrying transported in commercial quanti¬
strictly chemical business. Other
gas from the isolated oil and gas ties, and here the quantity involved
product. The invention of the au¬
purchase raw materials from re¬
tomobile provided an outlet for field areas to our principal popu¬ is only about 4,000 pounds/day. fineries.
Still
others, like coal
fthfo gasoline, and crude stills were lation and industrial centers will The Gulf Oil Corporation has re¬ tar
distillers, purchase petrochem¬
fabricated to effect the separa¬ result in steadily increasing values cently constructed a pipe line de¬ ical
raw
materials
to
combine
tion
of
gasoline and kerosene of these gases as chemical raw livery system in the Houston-Port with
or augment
chemicals
of
from the heavy bottoms.
These
reparations were made entirely by
physical means, and the chemical
ssgiroperties of the products were
frfctualiy unknown. The growing
acceptance of the automobile as a
iJafians
of transportation created
*an
ever-increasing demand for

Thursday, April 17, 1952

.

pjumps, stuffing boxes, valves, and
other equipment to operate along

to" with

be de¬

can

.

.

their prod¬

and

latter
part of that question is
thing
fairly simple if we stick to major
in common—they are active and
fields:
chemicals - made
from
growing. Growth, expansion, new
petroleum find their major out¬
products, new fields all are char¬
lets in
plastics, resins, rubbers,,
acteristics of the petrochemicals
plasticizers, synthetic fibres, pro¬
business.
That is why research
tective coatings, detergents, auto¬
plays so important a role; and
motive
chemicals, and nitrogen,
ucts and markets,

have

one

santo,

when I speak of research, I mean
fertilizers. When it comes to nam¬
we
find Carbide, Mon¬ to include not
only fundamental
ing the principal petrochemicals,,
Dow, Celanese, Rohm &
research, but laboratory and plant
we
find, as pointed out before,,
of ignition for the sudden release Haas, Hercules Powder,' Jefferson
development as well as application
of large quantities of combustible Chemical,
Commercial- Solvents, research. And we must not over¬ that most of the chemicals made
gases.
Many people think that Naugatuck Chemical, Esso Stand¬ look chemical and metallurgical from petroleum are, or could ber
gaseous fractions, which for sev¬ these
pilot lights are the burning ard Oil, Shell Chemical, and a engineering research, both of derived from other sources, al¬
eral years thereafter were used
of so-called waste gases
though perhaps not as economi¬
at re¬ number of others.
which have played a most im¬
primarily as fuel in petroleum re- fineries.
-v1.
cally; it is also true that almost
Although the listing is of neces¬ portant role in the development
Jxoeries.
These gases from the
any organic
chemical made can.
sity somewhat arbitrary, 56 com¬ of present - day refining and
•cracking operations contained ole¬
Fastest Growing Segment of
be synthesized from the elemental
panies are engaged in producing chemical processes. It was chemi¬
ums, which do not appear in natChemical Industry
building blocks which petroleum
chemicals from
zocal or "straight run" gases, and
petroleum. The cal engineering development that
affords, principally the olefins and
Today, chemicals from petro¬
in
the
techniques
of
sefmiug
technicians
soon
percomposition of this group is inter¬ resulted
diolefins. For example, within the
leum constitute the fastest grow¬
«eived that these "cracking gases"
absorbtion,
conver¬
esting, for it includes oil com¬ distillation,
petrochemicals industry, the
ing segment of the chemical in¬
^represented a wealth of oppor¬
panies, chemical companies, and sion, separation, extractive dis¬
manufacture
of
chemicals
from
dustry.
Twenty-five
years
ago
tunities for synthesizing more dea
number of comparatively new tillation, alkylation, isomerization,
some
seven
million
ethylene constitutes an industry
pounds
of
and a score of similar operations
«irable products. Today, the,y are
companies jointly sponsored by
in itself. Among the most impor¬
hydrocarbons were being utilized oil and chemical
Mxs
foundation
stones
of
our
companies. The which are practiced in presenttant of the ethylene derivatives
to make ethylene glycol, isopropyl
latter are significant in that in day
petroleum chemicals. As research
petroleum
refineries
and
are ethylene oxide and its deriva¬
Chemists developed new uses for alcohol, and two or three other most cases they were formed to chemical operations. Chemical and
ethyl alcohol, ethyl ben¬
the gaseous fractions, the demand products. Then came the utiliza¬ combine the ability of the petro¬ metallurgical engineering research tives,
tion of petroleum and natural gas
zene,
ethyl
chloride,
2-ethylwas increased to
such an extent
leum refiner to supply chemical are responsible for the successful
Hhat
special cracking processes hydrocarbons in the production of raw materials and his experience application of the high pressure hexanol, ethylene dichloride,.
ethylene bromide, and polyethy¬
ethyl and methyl alcohols and in the
were developed to appreciably inpractices
which
are
handling of hydrocarbons processing
lene. It is believed by many that
ammonia. Before World War II,
axease
gas
yield.
Petroleum
on a large scale
with the know- now so common. Some of us who
the latter will soon become the
chloride, and how of the chemical manufacturer had
«hfi*ox<:als then became one of the styrene, ethyl
experience in the develop¬
most important plastic in terms of
came
into the and his
objectives of petroleum process¬ polyisobutylene
ment of the high pressure hydrofamiliarity with diverse
pounds produced. Isopropyl al¬
ing and were thus removed from picture and consumption of petro¬ chemical
genation
in the
at these flares to

leum

tioned,

processes

and

market

process

late

back

jumped outlets.
will
recall
the
relatively
Typical of such companies '20s
war
rials.
are
Jefferson
Chemical, jointly primitive methods that one was
and postwar expansion saw a still
owned by the Texas Company and forced to use in fabricating high
Oddly enough, the processes for
greater
demand
for
an
everAmerican Cyanamid; National pressure equipment at that time
jseparaiing the by-product gases,
widening number of chemicals
rapw eo valuable as chemical raw
Petrochemicals, sponsored by Na¬ and the dearth of knowledge of
from petroleum with the result
tional
Distillers
and
Panhandle high pressure techniques and op¬
materials, were largely the result

the

category of by-product mate¬

more

efforts

to

the

control

that in

Has removal of the propane frac-

which

ivma.

allows

of

more

the

fratane fraction to be blended into

Vafuc of Gaseous Fractions

Perhaps at this point it might be
to

well

gaseous
^These

discuss

the

value

1950

had

hundredfold. The

almost

seven

billion

pounds of hydrocarbons were
sumed in

of

the

a

from

petroleum and

Looked

at

in

con¬

production of 14.6

gross

billion pounds of organic

chemicals

natural gas.

another

that

70%

of

jferted

to

waste

petroleum

in

some

quarters

as

Pipe Line; Sharpies-Con¬ erating variables under these con¬
tinental, whose origin is obvious; ditions. As a simple example of
and
American
Petrochemicals, the problems of fabricating, we
owned

by

Firestone

and

Cities

Service.

this
aliphatic

way,

the

tion to the organic chemicals pro¬
duced from petroleum, ammonia,

fractions from petroleum.
carbon black, and sulfur derived
are erroneously re-

gases

Eastern

The

petroleum companies en¬
chemicals produced and 33%
of gaged in the production of petro¬
chemicals vary
considerably
in
the aromatic chemicals produced
their products.
Some are classi¬
were of petroleum origin. In addi¬

means

gasoline.
.

a

vapor

of gasoline and to in¬
gasoline yield; I refer to

Sprefssure
crease

hydrocarbons

than

fied

chemical

raw materials. Others,
Shell, Jersey Standard, and
from
petroleum
totaled
some
three billion pounds more. The Standard Oil of California, make
results in 1951 are not yet com¬ and sell not only raw materials

like

Waste
3petroleum gases are practically
but
also
sizable
amounts
of
but
unquestionably,
the
jnon-existent although there is a piled,
finished chemicals such as alco¬
figures are substantially higher,
amatively widespread belief that
hols, ketones, esters, aromatics,
toese gases can, generally speak¬ considering the expansion of fa¬
etc. My company, Esso Standard
cilities and the increased produc¬
ing, be obtained very cheaply.
tion of such products as benzene Oil, which is Jersey's principal
Whereas this might have been the
domestic manufacturing subsidi¬
and
other
aromatics,
alcohols,
«ase at one time, the value of both
ary, falls in this category.
Actu¬
synthetic
rubber,
plastics,
and
3refinery gases and oil field gases
ally, however, finished chemicals
S3 steadily increasing. We have synthetic fibres.
represent a very small part of our
The total investment in facili¬
^already pointed out that refinery
business, and even when adding
gases
which are desirable for ties to produce petrochemicals is the chemical raw materials which
:£bemical
manufacture
are
no
conservatively estimated at some¬ we
supply to others, the total
imager in the by-product cate¬ what in excess of $1 billion, and volume sold is in the
gory.

Many

of

them

value—as chemical
and

as

gasoline

gases.

have

raw

dual

materials

blending agents.

it

is

growing

steadily.
as

high

lion, depending

upon

is

the

You
as

can

$2 bil¬

how much

one

or

two per cent

products
In

box

temperatures

pounds

3,000

therefore

and

sold

by

ium.
way

today.

to

be

an

alloy

case,

conditions

by

the

drawing methods

The tubes

made by

were

in

hot
use

therefore

actually drilling

a

four-

inch hole in seven-inch bar stock.
The length of the tube was limited
to 18 feet by the availability of

A

more

chemical

recent

and

example

metallurigal

of

engi¬

neering achievement can be had
the fabricating of the reactors

in

used in the Butyl rubber process.

with
case,

again

we

were

alloy material,
for service at

concerned

but in this
150 degrees

Esso, we take the view that our below zero with the temperature
primary function is to manufac¬ rising
to
atmospheric
normal
chemicals.
ture quality petroleum products. every 24 to 36 hours, thus creat¬
as to bow he
will use them; if
About 80% of this great busi¬
However, to round out our busi¬ ing unusual stress conditions. The
he selects
the
chemical route,
ness, confined chiefly to the pro¬ ness
and
to take advantage of challenge of designing and de¬
then these gases must be valued duction of chemical
intermediates the resources available to us, we veloping these reactors and the
Tbte refiner must make




a

choice

included

in

term

petro¬

and

derivatives

its

and

representative of
the
more
important
propylene
derivatives.
The
butylenes and
are

derivatives

their

materials

raw

rubber

said

industry,

that

the

the

rubber

materials,

petroleum

of age.

During the

which

research

was

out

carried

of butadiene

develop supplies

and

be

can

search for
of synthetic

came

raw

chemicals

to

synthetic
it

and

during

and the development

basic

the

are

for

isobutylene for synthetic rub¬
many
chemical compounds

ber,

hitherto

being
fractions

unsuspected
in

present

as

petroleum

identified, and this research
great
impetus to the
whole field of polymer chemistry*
Furthermore, in developing tech¬
niques for control of the synthetic
rubber processes, it became ap¬
parent that new analytical
were

provided

methods would be needed

cessfully
and to

control

these

to

suc¬

processes

identify the chemical

com¬

produced thereby.
problems
of
identification

The

pounds

suitable drilling equipment.

of the total
company.

had

under

pressure,

fabricating a tube which
be satisfactory for these

cold

Here

the

of

operating
or

internal

nickel chrom¬
In those days there was no

would

of

range

frnd estimates

fire

at

being in petrochemicals
they sell hydrocarbons tube; in this

as

because
as

might cite the method used for
fabricating a heating furnace tube
required
in
the
hydrogenation
process.
This tube had to serve

cohol

gylcerine

in

control

Butyl
many

at

the

rubber

early

the

in

seemed

mountable

at

the

procedures
are

the

range

almost
time

development

in analytical

day

which

process,

temperatures

new

and

of the
as

of you know is carried out

-150°F.,
to

days

of

and

of

insur¬
and

led

entirely

techniques

chemistry, which to¬

in routine

use.

I

Now that I have touched
upon
the subject of Butyl

rubber, and

because of its growing
importance

Volume

the

to

175

Number 5108

..

The Commercial and Financial Chronicle

.

(1625>

On ing and profitable endeavor for
the other hand, when the chemical years to come. In our own cornmanufacturer comes to the petrol- pany, for example, we are still
country by eum refiner with a request for discovering^ new and interesting
I: would ~sion Tnay be one of economics.

riabbef-industry,

Chemical

like to say that I am very proud
to remind you that this product

invented

was

in

this

an

Esso

affiliated

jjy

this

affiliate

with the Esso

built

affmate

alwav<?

for the
mestic

Butvl

nnpratpd

govemmenrthl
ruhher

only

To-

nlant<?

In

expedatiorTof son^Ume

the

business for the refiner, he may

running for more than

been

be dismayed over the time that it years

fnfthp
and

its

their

sharp

own

of

whether or not he fo.XTL^afIndTtTTfli
the material. But to- that the chemical industry will

Wl11 supply

exten-

an

presented, he must not only study chemical raw materials. Even if
the
economics
0f
the
required the demand for petroleum ehem-

Drop

Pfizer

&

Co. to

manufacture

At

the

annual

stockholders
Pfizer &

meeting
of
April 7 of Chas.

on

Co., producers of various

chemical

and

drug

announced

was

products, it
E. Mc-

by

John

velopment to expand the field of

0peration,

Keen, President, of the company,
that Pfizer plans to enter the pro¬

swer

duction

Butyl rubber utility. In

this

sive

of research and de-

program

technical

ion,

our opin-

advances

but he must also an- icals doubles, the tonnage of hysuch questions as: "How will drocarbons
required
would be

of

the

anti-tuber¬

new

less than 2%
of the culosis drug,
called isonicotinic
production of crude oil, acid hydrazide on an extensive
The company
qual- which is 6,400,000 B/D. Further- scale.
is already
jty of other petroleum products be more, the present known crude in production of its trade marked
In affected?"
and
a
number
of reserves are the highest in history, form
of
the
drug, "Cotinazin,"

of

a

broad scope are most likely to be
realized oply if the Butyl rubber

industry

the

affect

"How

many

balance?"

octane

barrels

somewhat

gasoline present

of

The

of

—

research

in

the

field

of

^ve-

petroleum chemicals has been imin

provement

the

quality of the

normal products of the oil indus-

try and of the processes for making them.
We have mentioned
how the development of processes
for controlling the vapor pressure
of

had

gasoline

value

of

the

making

chemicals.
in

search

the

valnp

in

fibres. This is true whether we
talk about the old established eellulose acetate in which, by the
way> the acetate radical probably
comes from Petroleum or natural
whether we refer to Nylon

imnrnxrPH

mntnr

The first 100

&0.

s

bv

process fo^ making

The

the diisobutvlene
result of

prior

to find

means

a

butylene from

t)hIi

nf

had

facture

cpnnn^rv

hpen

in

before

aviation

to

to

was

gasoline

ap-

manu-

oil

greater

?

enough

IS

States-

Therefore,

which

widespread

has

been

led

ditives

developed
—r—

research

was

years

ago
«7oc

fLpro

crude
Wned

small

oil

the

through

aimed

the

at

carried

ahnnt

nut

when it appeared

9^

that

£ Lt »nntwgin S
n!ft S L years. It
added

lGsult

flowed

at

to

was

lubricating oil

a

product

which

low

.temperature. An
entirely different chemical made
from

oil

was

found

to

have

the

property of making the viscosity
of lubricating oil more
uniform
under

a

ture

wide

Meet in Detroit

United

of

range

conditions.

tempera-

added

Chemicals

lubricants

to

hance extreme pressure

are

ance,

of

to

en-

perform-

to protect against corrosion

bearings,

crankcase
other

and

to

cleanliness.

discoveries

improve
These

have

and

been" fol-

lowed by continuous chemical

re-

search to find ways of tailor-mak-

develop- vestment Clubs held a meeting
on the floor of the Detroit Stock
Exchange April 15. As part of the
Pr°Sram thera was a demonstration of stock trading on a listed
market as Exchange floor trader
members show what takes place
from the origination of "buy" and
"sel1" orders to completion of the

each wiU find aPP»aa"on for trading session.
Topics were:
those uses for which its sPecial Objectives of Investment Clubs;

So you
one

see

hand

chemicals from
leum

them

Ppfrnipum
Petroleum

rru-

This

.

into

of the petro-

we

qualify

product.
new

evidence

as

This

will

both

it

the Originization

above

points

:

IJ
the

have

seen

come

to pass

synthetic rubber.

of

Investment

an

an^ Work of the National Association.
oldest dub in the associa.

The

Suppiem^enting^SuppHes from

Uon was fQunded jn Detroit in

^

There

is

one

petrochemical

other aspect of the
business

Pelrocnemicai

which

ousmess

wmcft

I

i

1940 by George A. Nicholson
.1

•

Chairman

^

.

tbe

of

.

m

supplementing

chemical TsuPplie,s ,from
sources.
In the last war,

petrol-

eum sources gave us toluene for
TNT which, in volume, could not

invest small

men

watch

and

now

...

.

,

a

dozen other programs, has been

being

each month

capitalism

m,

at

of 100 million gallons

benzene

output

from

.

_AA

.

.

There are now nearly 500 clubs
on

a

nationwide basis.

Members

T "kn°W

now

(Special to the financial chronicle)

As to what direction the devel-

Pfizer has added 34

is

lack of

no

prepared

from

such as stigmaterol,
which comes from
soya
beans, or from animal sources*
such

sources

cholesterol.

as

<

■

■

.

j

.

,

•

Morgan Stanley firoip
Offers Pipe Line Debs.
Morgan Stanley & Co. headed
nationwide

underwriting

comprising

143

which

offered

April

heavy

demand

a

group

investment firms

16

for

public sale on
$90,000,000 of Service
Pipe Line Company new 30-yeaur
3.20%
sinking fund debenture®
at 100% plus accrued interest
tofJT
yield
3.20%
to
maturity.
The'
sulted in the

the

on

the

for

issue

re¬

closing of the books?

same

day.

Out of the proceeds of the sale
the

company,
a
wholly-owned!
subsidiary of Standard Oil Com¬
pany of Indiana, will retire prior
to June 1, 1952 $46,000,000 prin¬
cipal amount of 2% notes payable
to banks and use the balance with,

other

funds

cash

to

the

extent

for its expansion pro¬
for other capital expendi¬

form¬

new

gram,
tures

capital.

during
Terramycin is now

in

produced

forms

15

against

80

portant

newer

is

diseases.
uses

for

im¬

is

the

treat¬

and

schools

used

expected

the

out

is

disease

in

Japanese

wipe

to

there.

Special

being made for dental

are

development in the Pfizer

organization during the past year
was
the production of crystalline
Vitmain A. This is expected to be
used in fortifying oleomargarine.
has

It

sinking fund payments

been

announced

by

the

Upjohn Co., also prominent drug
manufacturers, that two of the
D. H. Peterson and H. C.

Murray,

have

developed a new process in
cortisone production.
By a new

fermentation process,

Oct.

on

1957 and on each Oct. 1 thereafter
to
a

and

000

including Oct. 1,
the

of

debentures

right reserved by the

of

1981

sufficient to redeem

sum

$3,400,-

with

the

company

to

deliver debentures in lieu of cashi

increase any

to

and

payment up

to an amount sufficient to redeem,

additional $3,400,000.

an

also.

One

for additional working;

and

The company will make annual

use

Among

widely

now

Drs.

satisfaction

growth

of

upon

the

are

tremendous

known

and

hidden

away

unknown

in

the

reserves

of

chemicals

and

inserting
crucial

an

11

Hansen

*has

gress

*

ith

street.
Nathan

associated

become

HoTco., fl5
He
C.

was

Fay

H.

&

Con-

formerly
Co. and

R. H. Johnson & Co.

the

At

the
at

option of the

debentures

company

be redeemed

may

103% to and including April Ir
and thereafter at prices de¬

1957

creasing to the principal amount
if redeemed after April 1, 1979.
Since the end of World War II
Service

Pipe

steadily

Line

has
facilities.

Company

its

expanded

The

company operates a
12,160;
mile crude oil pipe line system im
11 states from origins in Texas*
New

Mexico,

and
oil
fields
principal destinations in the Chi¬

Rocky

Midcontinent

Mountain

Louis,

St.

cago,

Kansas

Cityr

and

Houston

Casper (Wyoming)
Deliveries of crude oil from

areas.

oxygen

into

molds which

The
of

the

new

in

to

(Special

to The

Financial

Chronicle)

BOSTON, Mass. — Osborne R.
stockpile. Finding applications for Linnekin has been added to the
petroleum

a
given operation falls the known chemicals and identi- staff of Chas A. Day & Co., Inc.,
in the petroleum chemicals or
fying and finding applications for Washington at Court Street, memoil' refining category.
This deci-' the unknown will be an interest- bers of Boston Stock Exchange.

are

synthetic
the

.

the

cortisone.

in

"Journal

the

basis

the

cortisone,

chemists

Chemical

of

Society,"

the
are

genus Rhizopus,
which in turn is a member of the

they

This
belongs

Mucoracea.

family

explained,

-

family,
to the

order known as Mucorales,
order

company's

1942 to

includes

the

progesterone

bread

have

system

in¬

80,639,000 barrels

172,814,000 barrels in 195L

Further

planned,
at
an
aggregate cost estimated
at
about
$70,000,000, of which
about $20,500,000 will be required
in 1952. Principal projects include
expansion

expansion
oil

of
the

from

is

system moving
producing areas of
refin¬

the

New Mexico to

Texas

and

eries

served

in

the

Neodesha

(Kansas),-Kansas City, St. Louis,
and Chicago areas; also
tion of

a

construc¬

crude oil pipe line system

an

species of the

which
molds.

is placed in a

in

newly discovered oil fields of

the

Williston

Dakota

pipe

to

line

in

Basin

provide

a

North

necessary

outlet from the

fields

including service to a new refin¬
ery

to be constructed by Standard

Oil Company of

Indiana in North

Dakota.

is a "lactalbumin
For 1951 the company reported
dextrose - cornsteep me¬
dium," and add the mold, allow¬ operating revenues of $55,359,831,
ing the mixture to ferment for income before interest on long
a period of 24 hours to 48 hours.
term debt and taxes on income
Thus,
they contend
in the
of $23,811,767 and net income of
"Journal" article, a new 11-oxyi' ■
:
genated steroid intermediate from $16,318,175.
"soup," which

•

atom in

position

the

creased from

—

be converted

then

The

Chas. A. Day Adds

re¬

in another
progresterone — in a
single step, providing an inter¬
mediate
compound
which
can

hormone

a

Me. —Philip

PORTLAND,
1UUJ.UJUW,

Murray

port that they have succeeded in

(Special to The Financial chronicle)

the with Walter J.

vast

Mich.

Peterson

American

glowing predictions.

gibning of whwin be done with

so,




be

can

vegetable

the past year.

article

Joins Walter Hood

will take in the future, there

eum

that it is indeed difficult in many
instances for the refiner to decide

whether

are

McKeen

important
item
in
the
is that each of these sub¬

stances

ulas of its drugs to its line

according

opment of chemicals from petrol-

sound

much

The
process

necessary

affiliated with Varne-

petroleum

There

so

Mr.

of

dis¬

streptomycin

overcome,

mazoo,

Bass is

per year of

fining has in >fact become
industry in itself;

use

the

work. company's research chemists, Drs.

doe, Chisholm & Co., Inc., Savanzene from petroleum sources by nah Bank & Trust
Building,
operations such as platforming,
;
hydroforming, and solvents exWifk Kmc* MerrSHtraction. The NPA predicts a rate
vviui iv g

supply of chemical raw
materials provided by petroleum.

ical

of

the

of

stated.

averted by the production of ben-

with

chem-

is
made
available
for conversion to the cortical hor¬

,.

to
observation
that the business of petroleum rea

new

using a mold
commonly associated with stale
steel expansion with its attendant h0w" of investing but at the same
bread, they can make possible the
increase in by-product coke pro— time watch their investments in
large scale production of corti¬
duction, it was obvious that the American
corporations
increase
sone, the Upjohn Company stated.
national demand for benzene was
:n vaiUG
.
,
The company is presently await¬
far
out-running supplies. Today
ing approval by the Defense Pro¬
the prospect of a benzene short\r
1
ru.* t.
1
duction Authority of a certificate
age, which could have threatened
**
* arneuOC, L^nisnolm
of necessity for construction of a
the future of phenol, styrene, de(Special to The financial Chronicle)
$3,300,000 cortisone plant at Kala¬
tergents, aniline, insecticides, and
SAVANNAH, Ga.
Samuel B.

past

•

Some

vmiri{J

to help young
sums

"0t ^

look

A.

germs

the

to

necessitate

advantages

Associations

fn

and that. 18 Advisory Board

)Tan.t to \ouch

lts importance

the

t.

disease

they do to streptomycin.

drugs.

use

we

petrochemicals industry, and are
Chemical confident that this is
only the be-

a

a

the

resistance

drug

which

jn the field of

adding We

are

others.

Refining
*

on

removing

are

some

fractions,
back

that whereas

we

it

working on a new proccess to
the base for the drug syn¬
thetically from citric acid, which
is
Pfizer's
leading
commerical

forms

not have been lubricated 20
years

the

announced

also

ment of trachoma, an eye disease
win survive the others in the fu- transaction.
ture remains to be seen. It would
A panel discussion of the Invest- prevalent in the Orient, by ter¬
seem to be a safe Prediction that ment Club movement followed the ramycin opthalmic ointment. This

PORTLAND,-Me. — Clifford A.
ing lubricants to fit the exacting by the end of 1952; this is equiv- Gagnon is now connected with
lubricating requirements of many -alent to about one-half the output King Merritt & Co., Inc., Chaptypes of machinery which could from by-product coke.
<
man Building,
ago.

if

make

—

also

monthly,

is

some

The National Association of In-

oMhe" syntiS «

percentage

was

tnG

the

McKeen

develop

the

to

manufacture of synthetic oil. This
work

liat'l Inv. Clubs

of so-called addi¬

use

was
—

v

chemical

the

in

tablets

warrants.

drug is not expected to
affect the sales of streptomycin
for tuberculosis, because there is

synthetic fibres> such as
Dacron>
Chemstrand' and Nylon- which derive
the major part of their raw ma"
erials from Petroleum sources, is
not only timely> but u is a dis"
tinct contribution to our economy,
Which of these synthetic fibres

tives to improve the quality of
lubricants. The first of these ad¬
,

grown

Mr.

The

8

marriage.

million

others—a situation similar to that Club; History of Investment Clubs;

.

importance

industry has

research

nfCfv!l

chemical and petroleum industries

.,

properties

'

perhaps

the

L„tvi

nnpratinn

U

.

Of

that

rnfSJin

several yea^s
plied

research

of removing iso-

gas streams so

wnni

It

entirelv the

was

chemical

nrnHnptinn

alcohol

di7o-

hvdroeenatine

butylene

was

in

^^ ^at ^his wed^ng of the

lSa£ov ma^ee

100

demand

Petroleum is that of a partner in
expanding and exploiting petrol-

satisfy world needs. Certainly not

re-

O^ane Num^r aviatiorf Sine ment of
produced tothe middle 1930
^rlon,
made

J-hemical

a

enormous

of

fuels and lubricants

acrylics. There has been

petroleum

of

been

making

has paid, and will continue to pay,
big
dividends
is
in
synthetic

^cif*}?*
Industry s
Stake

?!
controversy over
whether there is enough wool to

Likewise,

field

chemicals has

by-product

Another field in which research

fractionated «as. or
materials for or ">e

yielding

gases suitable as raw

thp

In this brief discussion I have

primary objective of much ways be viewed in that perspec-

the

progesterone
mones.

vvill be lost?" "How will the

is in private hands.
development, our company similar ones. For you must re- Then there are now some 400 reproduced from coal tar, and ex¬
would
have no interest beyond member that
petroleum chemicals, fineries scattered over 36 states so pects to reach an output of 40
that of being a supplier of raw
despite rapid growth, is still a that we have not only supplies, million tablets a month
by May.
materials to the rubber manufac- very small part of the oil refiner's but distribution of refining facilBy the end of this year the firm
turers.
business, and therefore must al- ities as well.
expects to reach an output of
this

anti-tuberculosis

new

drug, and the Upjohn Co. plans large scale production of
synthetic cortisone by new process.

I think that it is safe to predict,

takes for the refiner to come to a

de«sion f to

resnonsihiiltv

expense

Charles

.

day the refiner is virtually util- continue to expand at a very rapid
izing everything in petroleum in- rate. At the same time, the petrolnrndnntIfeluding the smell. Therefore, when eum industry will be well able to
its role as supplier of
affiliates Si ln/i ,1* a request for a new product is assume
have continued
its

Produce

10

re-

sumini?

at

along

Oil Com-

another

havp

and

materials which appear to materials, in the product stream
him to be a very profitable piece from an operation that we have

developed raw

Standard

Esso and

pany.

and

working

to Mass

digest

-

.

4

The Commercial and Financial Chronicle

Thursday, April 17, 1952

.

.

.

(1626)

34

(Special

The Financial

to

Farmer

of

dent of

Mutual Funds

ley

Louis

Federal Street.

M.

President and
Banking

Seiver,

Director

By ROBERT R. RICH

of

Automobile

Corporation, Philadelphia, Pa.
OF

SHARES

first

the

American

incorporated
open - end
mutual
fund organized to invest its funds
LOS ANGELES, Calif.—Walter
exclusively in the securities of
B. Strong has been added to the
Canadian natural resource com¬
staff of Witherspoon & Co., Inc.,
panies, have been registered with
215 West Seventh Street.
the Securities & Exchange Com¬
(Special to The Financial

Chronicle)

mission, Frank L. Valenta, Presi¬

announced over the week¬
Frank L. Valenta & Co., Inc.,

dent,
end.

of

ment of new fields and sources
natural

resources.

also

Potential

Great

Has

Canada

Frank

Valenta, discussing the nat¬
ural resource situation in Canada,
Mr.

past two years

as yet been touched.
He stressed
and managers of Natural the
large stands of timber in over
Resources of Canada Fund, regis¬
a
million square miles of forest.
tered
1,966,383 shares of 10 par Then Mr. Valenta pointed out that
value
capital stock of the new the
country has nearly every min¬
Fund.
eral used today and in quantities
Offering of the shares to the
rarely found
elsewhere in the
general public will be made fol¬ world.
He
said
that
Canada's
lowing approval by the SEC.
frontiers have pushed northward

request

upon

from

Fund

NATIONAL
RESEARCH

&

SECURITIES

CORPORATION

120 BROADWAY, NEW YORK 5, N.

Y.

Oct.

on

fund

mutual

22, 1951.

formed

was

with

investors

vide

in Dela¬
This new

incorporated

was

ware

Canada

of

Resources

Natural

investment dealer, or from

your

to

pro¬

opportu¬

an

nity to participate in the broad
expansion in the oil, natural gas,
gold, silver, copper, titanium, iron
ore, paper, timber, chemical raw
materials, hydro-electric and other
natural

industries located

resource

in Canada through
a

investment.

single
of

chaser

Natural

The

pur¬

of

Resources

the

of

of

discoveries

of such metals as
titanium, uranium and
cobalt, as well as gold and silver.
Successful drilling for oil in the
western provinces has brought a
new

deposits

iron

ore,

Capital Flowing to Canada

ing

capital not only from the

new

but

States

will

shares

position in

a

industries.

The

hold

all

from

securities will

which

insofar

A Mutual

those

be

can

parts

of

practicable

as

in

com¬

Investment Fund
Prospectus

may

be obtained

from investment dealers
Parker

The
200

or

Corporation

Berkeley St., Boston,

U

to

•FOUNDED

the

production

and

manufac¬

turing and processing of products
natural

from
clude

exploration

in¬

also

resources

and

develop¬

Inc.,

an

two

to

above

.

"NEITHER THE Presidential

paign

its

nor

expected

to

is

scene,

&

ment

Corp.

the

com¬

Invest¬

of

Department
&

Research

the

establish

flected in the fact that the

is

dollar

dian

premium

today

a

Union

the

and

will

West

irrespective of the election,

increased

and deficit

rates

wage

spending by tne government is of
genuine concern to the investor.
This indicates the advisability-'of

having adequate investment rep¬
in

resentation

stocks-in

common

from

benefit

rela¬

the

order

to

tively

high income available and

at

the

time to have

same

an

op¬

participate in the
long-term secular growth of suc¬
cessful American corporation.""
portunity

the

to

ADDITIONAL

of

leaders

funds

mutual

over

WOR.

heads

had

and

Western

management I

Six

already been assigned

Other

at

accelerated

an

rate

advance

during the

remaining months of 1952
the

production

volume.

reach

expenditures

defense

tary

in

stage

Further

U.

mili¬

as

larger

S.

expected this

are

fense

outlays

as

significance of investing in shares
of

year.

And

modern

our

economy.

individuals, they will

ex-J

economic
business and financial
distinctive

their

thinking

on

topics."
nine

The

peak in 1953 and continue

a

in

as

press

De¬
to

speak

that

Direc¬

ings and liberal dividend disburse-

on

America, and the role of mutual

funds

appro¬

expected

are

of the series, "will take
their
underlying theme the

sponsors

priations for military and foreign
aid

Peabody & Co.,

of Kidder,

ment

Conclusions

"Business activity will

Martin,

-

mutual funds depart¬

of the

head

Fox

Milton

explained

is proceed¬

Europe

plateau into 1955.
"Continued high corporate earn¬

and

the dollar as a result-of

no major hostilities are topics and dates for the broad¬
anticipated during 1952. It is upon casts which are heard each Sunday
such
assumptions that the
re¬ at 10:15 a.m.
armament
of the United
"Our guests on this program,"
States

reach

Mij. Valenta, di¬

Vice-President

continuance of
the
purchasing

industry have
viewpoint as to the outlook for accepted invitations to speak on
the remaining months of 1952.
the "Your Money at Work" pro¬
"The cold war between the gram which was started March 30
corporate

David A. Gibb, Exec¬

rectors are:

utive

at

dollar.

over our

addition to

In

Cana¬

quoted

stocks

preferred
a

in

decline

meeting NINE

staff

recent

a

the

was

Securities

to

the year

as

of

Research

at

held

far

so

conclusion

National

any

the overall
domestically or

concerned,"

posite

are

to

degree,

externally, in
1952

cam¬

conclusion

influence,

appreciable
American

in¬

years

assets

net

reasonable backlog

a

and

prudent,

seems

the

the

of

expected

panies whose activities in addition

Fund,

bonds

of

of the

country's resources and
companies other businesses range above $1,to show 600,000,000.
This boom has en¬
the greatest growth in the future. abled Canada not only to finance
It is the intention of the Fund a deficit in foreign trade but also
to invest in securities of Canadian to
add
significantly to its ex¬
natural resource companies
and change reserves. All of this is re¬
selected from

Nat¬

importance.

"Although

power of

a

be

of vital

program,

although

Valenta

declared, have resulted in attract¬
United

Inc.,

manager

than

more

go on

These developments, Mr.

Co.,

of the re¬

because

extreme care
in the selection of investments is

open-end mutual fund which in a

Soviet

prosperity there.1

new

Resources

globe. Estimates of the new. ing."
foreign capital which has flowed
into Canada for the development
number of different

Fund

Canada

the medium of

result

a

as

and

sponsors

ural

&

ahead

armament

little

potential which has not

vast

a

Valenta

devel¬
creased
its
in the
nevertheless there $4,000,000.

emphasized that although
opments have been rapid
is

L.

period

and manager of the Fund,

sponsor

sponsors

Prospectus

probably
result ,in
higher stock prices.
wider
variations
in
the

somewhat

Hagodorn & Co.; A. Stan¬ Since
Miller, President and Direc¬ earnings of various industries and
tor, Whitney & Kemmerer, Inc.; .companies are expected over tne

Chronicle)

—

With Witherspoon

will

ments

Frederick

William B.
has been added to the
Shields & Company, 24
Mass.

BOSTON,
staff

tor, Frank L. Valenta & Co., Inc.;
D.
Gabel, Vice-Presi¬

Staff

Joins Shields

Massachu¬

Investors

setts

E.

be announced

to

Griswold.

Merrill

are:

guests who will

new

dates

on

Trust; E. W. Axe,
&
Co.; Herbert R.

Axe

W.

Anderson, Group Securitiesrlhc.;

iiiiiiiiiiiiiiiiiiiiiiiiiiiimmiiiiiijiimiiiiiiimiiiiiiiiiiiiimii

Mass.

1925

2

MUTUAL FUND

NOTES

Schedule of Broadcasts
On Mutual Funds

iiii'lftil

will

The following programs

WALTER

L.

MORGAN,

communication
icle"

on

tual

funds

"The

to

cooperation

among

could

build

A Mutual Investment Fund

their sales
something about
their

but

growth

prevent

They

way

up

fund

a

limited
they

very

a

to think that the

criticize

have

may

group

other

mu¬

petty jealousies and

some

tendency

the

remarked

that, "In the past there
been

a

Chron¬

in

industry,

in

was

to

every

own

a

your

free prospectus write

investment dealer

or

CALVIN BULLOCK

of

unrealized

semi-annual

tion.
has

$2.36

One Wall Street

New York

like

means

funds

in

the

another

field,

next

WELLINGTON

shareholders
than

shares

to

1,000
the

year

ago,

is

a

tol¬

with matur¬

comes

PERSONAL

that

and

philosophies if

plained
that

Custodian Funds
COMMON STOCK FUNDS

his

are

there is

properly ex¬
business —

own

for

room

ent

policies

50 Congress

Street, Boston 9, Mass.

Please send
your
ten

me
prospectuses describing
Organization and the shares of your

Funds.

and objectives.

associated

We

to

furnish

we

a

the investment

public.
"Don't
the

funds

worry

to

about

cooperate.

cooperating.

We're
more

even

failure

We

going

to

of

are

Addren...

many

State

We're going

on

an

can

nounced

how to get there."

office,

their

in

it

was

April

Tuesday,

direc¬

as

an¬

15.

being

an

authority

in

lations

the

addition

public re¬
field, nas
experience in the

press

July, 1949.
directors

viously

was

a

director

of

Trust Co. of N. Yyfand

NEW

T.

ROWE

10 Light
Maryland,

Fund,
2,

dealers

April

new

a

with the "Wall Street-Jour¬
later

and

|treet, Baltimore
l^ts released for
prospectus dated

a new

phia

and

"Record"

was

"Evening

the

service
a

for

financial editor.
work

the

served

included

Washington
Associated

During

the

on

Rockefeller

war,

the

in

His press

prospectus; effective

period

Press.

Office

4

filed

stock

of

In--

&

250,000

ering

to

be

Calif.

shares,common capital
at th£ market through

i.'F-*'

1

April
cent

Frank

San

Fran¬

L.

11

Valenta & Co.,

Too

of

Griswold,
of

Board

Your

Money."
8:

E.

Fred

Brown,

Vice-President of the
Union Service Corporation
Group of Investment Com¬
panies, "Choosing Your In¬
Jr.,

E.

W.

Axe

Johnson,

■

Guests:

II,

E.

W. Axe,

&

Co.; Edward
Fidelity Man¬

Co.;
Colonial
Management Association, S.

agement
James

&

H.

Research

Orr,

,

RESOURCESw'hf ..CANADA Fund
filed oil 1,966.383 shares of
par
capital
Distributor is

NATURAL
on

on April
with the

>

Trustees, Massachusetts In-:
vestors
Trust, "Investing

Other

offered

SeciU'i^JS, Co.,

Merrill

vestments."

Exchange^', Commission cov¬

American

North

STOdk Fund

registration',;&6atement

a

Securities

cisco,

Martinez
of
INelson

Mr.

staff

the

a

correspondent

COMMONWEALTH

1:

Chairman

June

,

Stocks

High?"
June

f|nd,

issued

'

1952.

2,

President

Common

Are

Stock

An¬

R.

of Dis¬
tributors Group, Inc., "When

Firth Ster¬

Growth

Herbert

25:

derson,

PR^SPECTI

PRIC|

:

May

the

National Bank and

Commercial

Out¬
•
V

Business

"The

Corp.,
look."

Qo., Ltd. and pre¬

served with the date, April 12, 1952.
Philadelphia "Inquirer," Philadel¬
SEC REGISTRATIONS
nal"

tional Securities & Research

He is pn the board of
of Lehfpan Corp. and

American Metal

Na¬

of

Chairman

Jr.,

son,

Henry J. Simon-

18:

May

T&een President,

1420 Wal¬
helped to organize "Holiday Mag¬ WELLINGTON
azine."
He began his newspaper nut Street, Philadelphia 2, Pa., has
career

In¬

Prudent

stitution."

Climax-Molybdenum Co. since

on

service
and
magazine fields as writer, repor¬
ter,
editor
and
foreign
corre¬
spondent. As associate editor, he
newspaper,

"The Pruaent

metals programs.

development

to

financial

extensive

had

in

Man¬

Putnam

The

and

Man

Putnam,

George

of

agement Co.,

Companies,
of

Growth

the

'

Martinez,

co¬

know

of

11:

May
Partner

dent of General Electric Co.—also

'

Mr.

"Collective Investing."

ling Steel and C&fbide Corp.

he

only and

we

Law,

relations

Ledger." On the latter publication,

industry basis.

places and

public

Albert

are

because there

things that

best be done

of

with

President of Calvin Bullock,

Institute, and with Dr.
Zay Jeffries, forrher Vice-Presi¬

Inc.—in

Bullock,

Hugh

4:

May

Memorial

directors

Stocks?"

mon

II, worked closely with Dr. Clyde
E. Williams, director of Battelle

of

PROGRESS

Frank-Guenther

as

Name




service

operate

D-«i<

dif¬

young,

needed

Company

many

healthy, competitive
industry. We are rapidly grow¬
ing because it is now so univer¬
a

sally recognized that
The Keystone

ideas

ferent types of funds with differ¬

are

BOND, PREFERKED AND

other fellows'

the

a

last

FRANCIS X. MARTINEZ has be¬

ity and responsibility—a recogni¬
tion

the

over

Harry I. Prank-

April 27:

ard, Partner of Lord, Abbott
& Co., "Why Invest in Com-;

during World War

Mr. Bunker has

Philadelphia

which

first

the

quarter of 1951.

tor

erance

Mr. Bunker,

of Eaton &
"Economic!

Democracy."

a

Lehman Broth¬

numerous

also

but

"Today I see in our industry a
higher feeling of mutual respect

eystone

public in

upturn over the like period

an

come

There

of

rate

Sales of

and

elected to the board of
of
Growth Companies.

was

directors

quarter this year not only showed

good

more

funds.

before.

ers,

adding

the

at

month.

a

former partner of

Co.

Charles F. Eaton,

April 20:

Jr., President
Howard, Inc.,

President of

Climax-Molybdenum

the

since

FUND

first of the year, has been

that

ever

recent

a

ARTHUR BUNKER,

on

a.m.

r

graduate of St. Joseph's

a

10:30

-

date indicated:

the

College of Philadelphia.

door

business too for

more

established

store

business,

more

mean

10c
store

after

quarterly dividend distribution.

more

where

share

.

He is

WOR

Station

on,

10:15

from

distribu¬

security profits of about

per

new

that

Established 1894

dividend

Stock & Bond Group Shares
like

you

dealers have found

in

originate

Affairs, and subse¬
the- Department of

State.

Group Shares has
and
realized security

profits amounting to about $1.47
per share after declaration of its

b,y

don't build your own
destroying others; that
most dealers and the public, too,
buy more than one fund accord¬
ing to objectives desired.

ter-American

quently

sales

"Funds and

're¬

ports Aviation

silly;

For

SHARES

to

or

competitors.
realized that this was

soon

INSTITUTIONAL

Inc.

L.

Shelley,

The

Co. of Boston.

Keystone

Number 5108

Volume

175

George

Putnam,

The

Pu t

The Commercial and Financial Chronicle

.

.

.

off 12%

n a m

Co.; Edward John¬
Fidelity Management &

II,

due to increased taxes.

that

although there

appears to

Research Co.; Henry J. Simonson,

a

National Securities - & Re¬
search Corp.; Fred E. Brown, Jr.,
Union Service Corp.;
James H.
Orr, Colonial Management Asso¬
ciation; S. L. Sholly, The Key¬

and demand of chemical

Jr.,

stone

Co.

during

have

continued

with

net

had

net

the

of

assets

comparing

with

many

from
,■

the

and

to

portfolio since

quarterly

been

Co.;

Trust

Corn

Exchange
Manufacturers

Co.;

Bank
Trust

Power

&

Light

Co.;
v

Fox

Film

panies

the

Twentieth Century-

*

in

increase in sales

1951

of
per

and

number

stood

over

1950.

1951.

outstanding
date, representing an increase of
were

Holdings of

of

March

31

stocks

common

amounted

to

40%

Only

Industrial

The

securities,
corporation
cash, etc., 60%.

-*

<

job

is

evidenced

by

quar¬

one

story

pany

and

its

|~the price and
ing, is

March 31, last, from

shares, including

$11.25

terms of offer¬

available

upon

share

a

The Fund

request.

$1,194,493

Dec.

on

31,

the

ernments.

EBERSTADT & CO. INC.
39

Broadway

New York City

Continued

or

36

an

eye

for

write
.32

All
——I

listings
.

FUND

Morgan

Fund—

imtl

mUKGION

your

-

Bowling Green Fund_.i_—
Canadian

_

Investment

Fund*

:•

prospectus
your

investment

S-3—

be

Total

New

common

Extra

which

Fund

13.65

14.46

0.95

0.80

8.25

Fund^r-

0.90

3.77

3.71

3.90

18.14

17.09

in the above
year

a

as

had

been

a

increasing

—

Semi-annual

r

Large

been accompanied

City banks to the highest level since before

in

this

area

charged

of 3.17%

average

an

4-15

same

5-

1

4-15
3-31

period of 1,951, the comparable rate

have had

dramatic effect upon earnings.

a

from loans has been sufficient to offset

the

4-15

3-31

and

4-15

3-31

able to carry a

?37.79

4-25

report

4-3
,

higher taxes.

gain in

a

These

4-3

In

per

The increase in income

higher operating expenses

addition, most institutions have been

exist

in

the

4- 3

Loan

4-25

4-

4- 3

5-31

4-30

current

activity continues at the present rate.

4-25

3

2.69%.
rising interest rates,

share earnings.

factors

same

volume

is

high and should remain

so,

6c

5-31

merged with Loomis-Sayles Mutual Fund

4-30
source.

May

as

business

At the same time, the banks

The latest general

rates.

adjustment occurred at the end of last

,

the

•

■

Although operating
increase

continue

in

income

to show

expenses may

continue to gain modestly,

loans should enable

from

most banks to

gains in quarterly net earnings throughout the

periods.

succeeding
on

1, 1952.

long

have not received the full benefit of the recent increases in interest

4-30

5-31

in Canadian funds; tax deductions at the
Non-resident tax 15%; resident tax 7%.

outlook.

operating
as

year.

-16.09

on

In the

portion of the increase through to net income and

4-25

12.73

was

These two changes, increased loans and

/

50.78**

interest

short-term

on

4-15

^Payable
be

and have

by firming

the increase has brought the rates

banks

19.05

9c

profits

year

4-25

4-25

of the

high level into the current period.

4-28

Y.

investment income—.

Realized

the start

increase throughout last

in loans has

24.27

35c

„

prior to

further feharp gain in the fall of 1950.

a

4-30

____

25c

7.42

0.88

short-term loans during the first half of March this year.

9.10

13,c....
;

.

4.49

10c

Second

3.18

3.54

1.95

4-16

18.43

Stock & Bond Group Shares—

**To

4.3-3

3.78

2.11

—

experienced

war

In fact,

Aviation Group Shares—

Net

5.06

World War II.

U

Special
..

1.50

1.18

$3.30

Loomis-Sayles

Knickerbocker

6.06

1.57

4.55

-

loans for New York

Of Record

-

15c
.

17.06

5.97

0.37

figures, the trend of earnings has
evidenced by the change in the
The two principal factors responsible for this con¬

50c

Extra

2, PA.»

18.36

1.40

1.28

-

seen

48c

(initial)—

4.48

0.39

—

loans continued to

rates.

5- 1

*

-

27.92

interest rates.
Loans

Payable

$11.86

,6c*./

——

9.27

24.60

1.40

—

9.60

6.08

5.18

__

2.06

5.53

__

City

can

Korean

Bid Price

;

20c

Loomis-Sayles Mutual Fund—

deatf

or

PHILADELPHIA

B-2—_

4.77

dition have been the increase in the volume of loans and the rise
in

Holders

Keystone Custodian Funds—
Series

from

•

2.95
-

1

yearly totals.

If you're
own read-

When

15c

Series

i ft

_

been upward for over

A
is¬

Approx.

10c

Haydock Fund
jesi

4.55

2.50

♦Indicated earnings.

ANNOUNCEMENTS

12c

Axe-Houghton Fund B
*

3.45

„

Trust

S.

As

from net investment income

Fund—

0.82

.

-

*Public National
*U.

Economics,"
Broadway, New York City.

-Share

Mutual

0.96

2.92
:

2.40

New York Trust

children's sake,

ummmm

American

3.10

-

(J. P.)

National

"Popular

Div. Per

0.60

„

Manufacturers Trust

unless otherwise noped.

'•

y

DIVIDEND

quarterly payments

are

23.85

3.16

___

Irving Trust

This rise
MUTUAL

—■■■■■■HgMMMMMMBUBUBlUlfc

22.17

0.80

1.26

__

Guaranty Trust

Haig Babian.

interested for your
or

6.19

*Empire Trust

Di¬

kind

its

of

sues) for one dollar.

ing

6.41

..

the

Administrative

$2.06

Trust

*First National

Hoagland
in

$2.02

Corn Exchange

"Sun" edi-

Mr.

1951.

$0.53

0.82

York

1952

$0.51

..

Chemical Bank

Magazine layout. A

best

March 31

1951

1.00

New

of

been maintained at
iMHH«Hi»imHim»mniiWHijjwi

put the figures
Twelve Months to

Chase National

for

quite a bargain.
year's subscription (ten

1951.

page

where

except

—First Quarter—

Bankers

the

on

It's

apprecia-

on

and

.prose

rector is

:.

Unrealized

earnings,

.

*Hariover Bank

country.

on

with the balance in cash and gov¬

F.

•

Bank

has made this magazine one of

90.3% in equities

was

operating

dividends and stock splits to

*Bank of Manhattan

their reading racks for em¬

rtorial" writer,

148 and boosted total net assets to

share

below,

1953

dramati¬

Digest,"

former New York

The increase amounted to $111,-

a

tabulation

-

industrial corpora-

and

attractive

:

$11.42

over

comparable basis.
1

re-

simple

or

the

been made for stock

ployees.

.

describing the Com¬

reported lower

however, earnings showed improvement

now

In

The editor is Clayton Hoagland—a man with an ear for

$1,305,641

actually

otherwise indicated, are presented for 17 of the New York City
banks for the first quarter of 1952 and 1951 and earnings for the 12
months ended March 31 for the past two years.
Adjustments have

tions putting plenty of copies

,

terly report made public Wednes-

A Prospectus

exceptions to these

were

are currently liable.
There is considerable reason
expecting that operating results for the full year will be
somewhat higher than those for the year ended Dec. 31, 1951.
The principal reasons for this expectation are the trend of
earnings and the factors responsible for the current improvement.

for

on a

cording

,

Indi¬

This record is very encouraging in view the higher taxes for

Ex-

radio

recorded

day.

results,

which the banks

Beginning—

increase of 9.3% in net assets
in .the first quarter of
1952, ac¬
.

operating

the first quarter of 1951.

and

"Magazine
zation of

on

company's

the whole,

On

print orders totaling nearly a
vmiiiion, appearance of its ar¬

an

the"

report

Of course, there
results, and several institutions
earnings.

Testimony to the fact that

,,

did

bonds,

to

which

general

this magazine is doing a splen¬

of

were

banks

showed similar trends.

vpands Employment."

on

time,

those

cases

earnings for the others, that is, the earnings as indicated by
changes in undivided profits and adjustments for dividends paid,

The

Research

most

cated

ticles in "Readers Digest" and

same

COMPANIES

In

'

108.803 shares for the period.

share

per

i*

829,745
on this•

total net assets; U. S. Government

At the

earnings

average

"It's

at

in

Pioneer," "So
Gets
Around,"

How

$6,601,880, an
$881,619
since
the

of

The

Money

- ■'

•

31, 1952, assets of

GROWTH

20%

Still

stated by Herbert

period

shares

com¬

Chemical

for

assets

was

Fund

increase

Fund's portfolio showed an aver¬
age

NET

of'March

same

represented-

Chemical

Bank Stocks

showed earnings above those of the March quarter of 1951.

invest

can

exhortation, editorializing and
special pleading. It simply ex¬
plains how our enterprise
economy works—and in doing
this it explains to Americans
why they are especially
blessed by living in a capital¬
istic society.
Typical of the content of
the magazine are articles like
"Why
Prices
Go
Up
and
Down," "American Farmer—

31, 1952, stood at
equal to $21.63 per

Anderson.
As

Corp.

THE FORTY-FIVE chemical

of

people

—

pected.

"Popular Economics" avoids

the fu¬

March

curities, it
R.

•

"Invest?

of the mag¬

one

JOHNSON

Operating results of the principal New York City banks for
the first quarter of the current year were
generally favorable and
in a number of instances
considerably better than had been ex¬

their money is explained.

outstanding are current¬
ly at a new high for the Fully
Administered Fund of Group Se¬

sEliminations: Celanese Corp. of
America and

assets

that

ways

of shares

Lone

and

net

on

TOTAL

Co.; Best Foods, Inc.; Corn Prod¬
ucts Refining Co.; Wrigley (Wm.)
Jr.
Co.; • Southern
Pacific
Co.;
Southern
Railway Co.; Carolina
Star Gas.

of

share at the end of the first quar¬
ter of 1951.

Additions: Bank of the Manhat¬

en¬

features in which the various

contribution

earnings in

$51,781,818,
share, compared with assets
$41,253,208, equal to $20.03

as

article, called

E.

This Week

giant-sized

a

H.

years

azine's "consumer economics"

products which should

and

Total

follows:

tan

production

significant

a

sales

Fund

the last

have

report

The

And How?" is

ture.

eliminations

doing

two

job in explaining how our
terprise economy works.

corporate

the

for

new

make
to

$169,606,353
on
Dec.
31,
1951,
equivalent to $4.76 per share.
Additions

of

rate

been

By

Economics,"

past

.

facilities

company

share and
assets
of

per

net

high

these

has

restricted

Bank and Insurance Stocks

the

little magazine

a

"Popular

which

high

a

profits

in

article

an

May issue of

The chemical industry continues
its building program to provide

$192,589,294,

equivalent to $4.88

the

at

in

called

part of 1951,
the first of the

sales, since

taxation.

dent, Affiliated Fund, reports that

1952

month

products

is going to be
microscope next

Street

the

...under

supply

greater

level

HARRY I. PRANKARD n, Presi¬

31,

the

year

by

March

between

total

OPEN-END REPORTS

on

balance

Wall

be

at the present time than prevailed

Boston.

of

closer

35

Why You're Blessed

The quarterly report points out

Management
son

(1627)

for the

Thus,

as

year

whole, operating

a

earnings should show improvement over those of 1951.

Call for your

Rejoins Bache Staff

FREE Prospectus or
send the attached

(Special

—Today!

coupon

American

MAJL THE

COUPON TODAY!-

Business Shares

INC.

The

Financial

COMPARISON & ANALYSIS

Chronicle)

CHICAGO, 111.—Ralph E. Vennum

has

Bache

KNICKERBOCKER SHARES,

to

&

Street.

17 N.Y.

rejoined the staff of
Co., 135 South La Salle

He has recently been

with
First

Reynolds & Co.

Dept. C
20

l'rosi>cc!u.<

upon

request

Send me.-without obligation, Prospectus

With Emanuel, Deetjen
Emanuel,

for Knickerbocker Fund.

Deetjen

&

Co.,

120

Broadway, New York City, mem¬

Name

bers of the
Address.

City

Quarter 1952

Circular

Exchange Place, New York 5, N. Y.

.

State.




Lord, Abbktt & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

change,
Otto

New York Stock Ex¬

announce

Nachtman

cnointPrl

with

thp

become

firm

as-

on

Request

Laird, Bissell & Meeds
Members New York Stock Exchange
Members

New

York Curb Exchange

120

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

(L.

A.

that Raymond

has

City

Bank Stocks

Bell

Teletype—NY

1-1248-49

Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks

36

(1628)

The Commercial and Financial Chronicle

Continued from

first

There

page

number

Investigation of the SEC
ings

a

;

"(3) Competitive bidding.
"(4) Sale., of

fraudulent

United States.

.•

,<•

.

....

f

,

Canadian

in

securities

the

:;-7\

*

"(5) Hearings to obtain suggestions from Stock Ex¬
change officials, banking institutions, insurance companies,
and any other
persons who have genuine suggestions to
offer for
amending the statutes administered by the Secur¬
ities and Exchange Commission."
.

Heard

President

•

March

on

of

the

10th

New

York

Curb

Mann, Chairman of the Board
change,
■; :/.'A;...'■/.•

Edward T.

were

Here

McCormick,

of Governors of that Ex' v:-/;-; \;

•••

On March

tive

Vice-President, all of the New York Stock Exchange.
Mr. McCormick, himself a former member of the
_.»V| Commission, made the following specific recommenda¬
tions: (1) Congressional
adoption of the amendment to the
Securities Act of 1933 proposed in 1947
by the Commis¬
■

sion's Staff Committee.

Salient

,

provisions

of

that

amendment

include:

(a)

period of distribution and for delivery of the prospectus;
(d) directions to deliver the prospectus in advance of the
sale; (e) redefining Federal jurisdiction in securities trans¬
actions involving the use of the instrumentalities of Inter¬
state Commerce.

Mr. McCormick also favored the

adoption of the Frear
simplification of the prospectus
and the filing of abbreviated
registration statements for
bonds of institutional grade.

Bill and advocated further

While no one would
deny the urgent necessity of a
simplification of the administrative machinery governing
the registration and distribution of
securities, one may
well question the need of
combining such a needed reform
with a proposition
calling for the extension and enlarge¬
of SEC powers. This latter is
clearly the intent of
sub-section (e) of the amendment in
question.
Still another of Mr. McCormick's
recommendations
is likewise designed to
augment the Commission's regula¬
ment

and, conincidentally, to benefit materially
the organization with which he is
presently identified.
We refer to his
advocacy of the so-called Frear Bill, adop¬
tion

powers

of which

has

long been sought by the Commission

despite the wealth of evidence that it would not be in the
public interest and very likely would establish still another
roadblock to the smooth

functioning of the capital markets.

Up to this point, for the
fore the Heller Committee
for the extension and

most

adoption of the Frear Bill would serve
the powers of the Commission
enormously.
self

light of the fact that Mr. McCormick

SEC

an

Commissioner, his

readily understood.
a

Whether he

as

augment
was

recommendations
can

him¬
be

can

regard his duties

witness with complete

ground and

to

We have been

informed, too, that the Commission has
been extremely
busy in preparing data and opinions as a
means of
courting the Heller Committee. There has been
marked activity
along these lines at the New York Re¬
gional office of the SEC.
Congressman Heller, in whose good intentions we
believe, we wish to give this word of caution: Don't
permit
Committee

as

a

medium for the

ex¬

tension of its powers.
,

The SEC has issued its 17th Annual
Report to the

Congress.
In

.•

.

.

,

number of these
reports, and in the

a

communications of

accompanying
transmittal, it has actively solicited an

extension of its powers. The Heller
Committee should hot
be used as a medium for

Commission has failed
gress.

"

,

.




.

recommending that which the

to

:■

achieve by direct
'
—
■
;/

prayer
•

"

to Con¬

-

•

•

•

Co.

Bay

Common

increased

commons

Products';pre¬

Shellmar

stock

holdings
Avia¬

Bendix

in

pany.

Procedure Act has been observed

Standard

an

commons

to

1952,

by the SEC

shows

public service.

It

a

.

36.9% of the
with 31.6%
These

earlier.

months

cost of $16,804,408, had
market value on March 31,' of

stocks, at

a

}'

$56,764,268.

■

'

;

Among the substantial additions
made
in
this field during
the

quarter were
10,000 shares

of

holdings

new

Texas Pacific
1,800 shares of
Amerada which brought total
Land

of

and

Trust

holdings in this company to 81,800

shares, the largest item in- the
company's portfolio.
Also added
were
10,000 shares of Interna¬
tional Petroleum.

V.

*

i

During the nine months the cor¬
poration's
total
purchases of
securities, other than U. S. Gov¬
ernment obligations, amounted to

public.

$11,135,539 at cost while the pro¬
sold

securities

from

ceeds

Net

were

\

$11,596,314.

,

'

the investments
sold amounted to $3,926,729, over
profits

on

of which was realized
recently completed quar¬
In
the
comparable
nine

$3,000,000

as

the

in
ter.

months'
fiscal

of the previous
realized profits

period

year,

amounted

to

$3,980,320.
appreciation on

unrealized

Net

amounted

securities

portfolio

$75,311,905

to

31, last, as
$51,225,818 nine

March

on

with

compared

months earlier.

Meanwhile, net ordinary income
after
a

operating expenses for the

nine

splendid opportunity for
make recommendations which, if

can

an

three

;

,

March

on'

gas common stocks to
net assets compared

;

The Heller Committee has

,

31p 1952,
increase in the oil and

Portfolio

expedient.

*

high for any quarter's

history of the corpora¬

in the

1951, was $60.09.

efforts/ owe us a
ardship. There seems to be little justification for making
a secret of
any part of that service.
That fear of reprisals by the SEC and NASD actually
exists in the securities industry is amply established by
the large number of letters and complaints we have re¬
ceived against some of the activities of both organizations
wherein a request is made that the writer's name be withheld.

increased

share on March 31,

per

new

a

i

the capital

of

value

tion, the interim report reveals.
Comparable figure on June 30,

taxpayers we pay
detailed account of their stew¬

for their

from

eliminated

Lehman Corp.

of

$73.74

end

always contended that those in the securities
industry opposed to many of the SEC and NASD activities
are
not heard because of fear of reprisals.
Perhaps for
such individuals, hearings before executive sessions of the
more

ASSET

stock

all-inclusive

Public employees, those whom

Spring Co. and
of Ohio

Company

Closed-End News

We have

Committee would be

were

NET

required effect of ade¬

view such sessions should have been

Oil

the portfolio.

are

intended to be

Steel

Standard

guide.
We are disturbed, incidentally, by the number of
executive or closed sessions during which SEC Commis¬
sioners and employees of the Commission were heard. In

months

$3,341,133,

was

as

against $3,377,949 in the first three

of

quarters

adopted,

may well advance the welfare of our entire na¬
by creating freer and more liquid markets.
It would be a great pity to see that opportunity wasted
as a result of
listening to slanted advice emanating from
the very source which is being investigated.

fiscal

previous

the

year.

tion

As

March 31,

1952, common

represented

84.8% of the
$153,726,297,

of

stocks
total

assets

net

practically

of

unchanged

the

from

percentage at the start of the fiscal
bringing

Double NY Curb

of 52%.
has

Tickers Installed

year.

the total to 32, a gain
During 1952 the network

been

extended

into

In

to investors has

in

the

18

of cities

more

months

system

in

which

than doubled

since the

with the installation of two tickers

became

Curb

leased

a

"The

the

were

total

tickers

American

tickers

5,000

currently in operation or being
operated
by the
installed,"
Mr.
McCormick
re¬
members, Edward T.
ported. "This figure represents a
McCormick, President of the ex¬
gain of 190 tickers or 31% in the
change announced.
18 months of member operation.
With new
orders by
member
wire

network

ister,

exchange

firms

tickers

for

N. J., and

in

Red

Bank,

Easton, Pa., the system

includes

cities

123

in

United States and Canada, a
of 62 cities or 102% since

1, 1950.

the

gain

Joins

Further emphasizing the healthy

geographical
service

McCormick
have

been

this

stated

added

to

11

the

states

system,

shares

&

item.

Humble

v~-

also,
Reg¬

Cash

shares

bought

E.

R.
a

^ere

-

town
<

shares

commons

dur¬

40,000 shares

were

Utilities,

Bethlehem

Co., Illinois National Bank

i

Also

ing the quarter

Slayton Staff

Building.'. Y.:t

10,000

and

10,000

Light;
Electric;

National

Largest sales of

tickers

("Special to The Financial Chronicle)

ton

&

Penn

6,000 shares Standard Gas & Elec¬

ticker
QUINCY, 111.—Wesley E. Kern
period, "Mr. has become associated with Slay-

that

Power

tric Co. $4 preferred.

expansion in

during

holdings of public util¬

West

Kentucky

Oct.

^

*

new

1938, that the New York Curb Ex¬
many

pur¬

Squibb & Sons, the latter also

It is the first time since February,

change has had that
in operation."

new

shares

brings to 800

number of Curb

stocks

ity common stocks, 15,000 shares

addition of the Red Bank

Easton

oil

to

portfolio during the past quarter

in Toronto.,

and

addition

chased, principal additions to the

Canada

According to Mr. Mc¬
New York Curb Exchange tickers Cormick, Montreal is expected to
join the network shortly.
bring stock and bond quotations
The number

now

.

by the
Hydraulics

tion, McDonnell Aircraft, Thomp¬
son
Products, Delta Air Lines,
Speer Carbon, Collins Radio, A.
O. Smith Corp., Ekco Products, IT.

to some of the
subject matters here recom¬
Nonetheless, we feel that they constitute a suit¬
able agenda for the Committee, although they are by no

'

in

were

mended.

our

to

made

Greer

in

Hudson's

ferred.

attention

means

investments
were

and

cognizant of the fact, of course, that the Heller
Committee, in its executive sessions, and perhaps in a
small measure in its public hearings, has no doubt given

ticker

To

your

and

additional matters that cry

as

objectivity, in view of his back¬
President of the New York Curb
Exchange,

use

New

trol this evil.
We

amounted

securities

of

Fund

quately making for fair trials in proceedings wherein the
Commission is a party; (g) the employment by the public
of ex-SEC Commissioners and other ex-employees of the
Commission, together with legislation which would con¬

is another question.

the SEC to

T

H. Robertson Co. and Haloid Com¬

are some

and whether that Act has had the

are

and the

In the

istrative

part, the witnesses be¬

using it as a sounding board
enlargement of SEC powers. Cer¬
tainly the redefining of SEC jurisdiction, as recommended,

/

35

page

$94,623.

,

authority to make offerings in the post-filing but preeffective period of registration; (b)
permission to use a
"screening" or "identifying" statement in advance of the
official prospectus; (c) a more "realistic" definition of the

tory

tion

for investi¬
gation: (a) the trial and review system of the National
Association of Securities Dealers wherein that body acts
as
investigator, complainant, prosecutor, jury and judge;
(b) the interlocking relation of the SEC with the NASD
as it deals with dual
policing; (c) whether the NASD's 5%
philosophy constitutes an unreasonable limitation upon
the right to do business and is
gradually exterminating
the small broker-dealer; (d) whether the Commission and
the NASD have interfered in
private disputes where no
public interest was involved; (e) the extent to which the
SEC has used its rule
making powers to promulgate un¬
authorized legislation; (f) the extent to which the Admin¬

Exchange, and John
{

from

Mutual Funds

r

be revised.

24th, the following witnesses made state¬
ments and gave
testimony: G. Keith Funston, President;
Richard M. Crooks, Chairman of the Board of
Governors;
John A. Coleman,
Governor, and Edward C. Gray, Execu¬
.

Continued

some

are

—particularly in view of the contentions in the current
trial before Judge Medina—legislation is necessary to de¬
fine and ensure the legality of selling group agreements.
We think that the public is interested in ascertaining
whether the administration of the Securities Acts by the
SEC has adversely affected our economy.
Although the Committee has been inquiring into the
duties and functions of floor traders and specialists, we
believe there should be particular consideration upon the
question of whether existing rules respecting these should

are

"(1) The National Association of Securities Dealers.
'*(2) Private placements.
V
^
,

Here

Thursday, April 17, 1952

.

sulted in the thinness of the current market; (2) whether

contemplated and interested parties have been
vinvited to present their
testimony:

;

of useful

inquiries .which this
that we suggest:
(1) whether the exercise by the SEC of its powers has re¬
are

Committee should make.

.

.

12,900

shares

7,500

Steel,

share3

Oil, 10,000 shares Youngs-

Sheet

and

Tube,'

International

10,009

Paper

and

6,500 shares B, F. Goodricli & Co.

i

Volume

175

Number 5108

.

.

.

The Commercial and Financial Chronicle

(1623)

Continued from page 12

last point above, however, the in¬

Economic and Legal
Factors in Stock

lead

options involve

"compensation"

"other

or

shall

be

provided

provision,

re¬

However, the Salary

by *

a

holders.

stock

time, the Board agreed that

same

at

remun¬

Some

further

stock

95%

of

should

not

options

fair
be

value

as

the holders of two-thirds

infla¬

market

treated

fourths

of

the

met;

and

in

Stabilization
released

Regulation
Nov.

on

14,

1951

(dated

dissenters, and for this

In

world

s

95%

fair

of

re¬

options granted
market

value

quirements

(1)

are

effect

tionee

:

met:

is

only

its terms

while

employee

an

the

is

op-

within

or

three months after his employment

titled

Board

of

Directors

negative vote.

especially
and

too

of

of

large

by

However, stock¬

large

certifies by resolution that the op¬
tion was granted as an incentive

ship

;to

crease

stock

encourage

and
in

not

to

owner¬

provide

an

a war-

or

an

as

expense under any

a

law

or

regulation any amount in re¬
spect of the transfer of the stock
pursuant

to

the

exercise

of

the

for

Incentive:
obvious

Stock

The

and

the

Group,
over

els"

in

after

February,

the

because

I

That

the

signs
War

fields

of
II

the

Wage

new

-

attitudes toward

to

current

be

this

In

Consumers

Stabilization
an

Board

in

in¬

option, whether or not held for cers into partners and retain the crease in pay of approximately
the two-year
period (it is not services of executives who might 30c per hour for steel workers
clear whether this applies to op¬ otherwise leave.
However, it has may be highly significant, espe¬
erating expenses under the Rev¬ been my experience that there are cially in view of the resignation
enue

Act

of

at least four other

1951).

Following

public hearings, at
which I testified, before the Stock
Option Advisory Panel of the Sal¬
ary Stabilization Board, held in
New York last December, certain
suggestions for revision of the
Regulation
were
submitted
by
George Brownell, of Davis, Polk,
Wardwell, Sunderland & Kiendl;
Donald
Swatland,
of
Cravath,
Swaine & Moore; and myself. We
urged, among other things, that
the
Regulation
should
not
be
given retroactive effect and that
plans and agreements .established
prior to the date of the Regulation
(even though after the freeze
date) should be exempt from con¬
(

which

reasons

usually enter into discussions by
Board

a

of Directors

Stock

options

provide

a

of encouraging the officers

means

of the corporation to increase their

stock

holdings in the

result

from

which

is

stockholder

a

of view

and

desirable

relation point

which

become

years,

company—a

highly

has, in recent
subject of in¬

a

creasing discussion
ment advisors; (2) Whether

among invest¬

not options are
determined to involve compensa¬
tion

or

remuneration

or

As

within

and unemployment for workers in
other
industries, such as textiles,
and thus bring on a

creating

extended to options granted at not

of the fair market

any>; amount

in

stock

exercise

the

of

centive to executives and
key em¬
ployees that will not be taxable at

eliminated.

To

recommendations

date,

these

have

not

been

acted upon

publicly, but it is my
understanding that one or more
of them will be adopted in a re¬
vision of G. S. S. R. 4 which will

be published shortly.
State

Corporation

provisions

of the

The

Laws:

sections

of

the

mitted
on

earnings should be
share in

to

somewhat

a

summary.

corporate charter,

corporation
for

the

may

issuance

a

business

establish
and

sale

a

plan

of

its

Authorized but unissued shares to

jts employees in:such manner as




that

up

to

The

Financial

noticeable

any

increase

in

This relaxation has

ordering,

concludes

V

!
I

■

capacity

for

the

for

week

the

entire

beginning

industry

will

be

^v

ef
t®

62.3% of rated capacity. Lower operations a week
occasioned by the strike threat of the steel union.
-

~

4

benefits

favorable

to

The

DENYER,

Financial

Chronicle)

1

<

Car

*• '"

,

.

'

"

'

*

A year
\

:

•»

(

J

i'

•

Loadings Ease in Latest Week

Loadings of revenue freight, for the week ended April 5, 1952,
707,142 cars, according, to the Association of American
Railroads, representing a decrease of 18,281 cars, or 2.5% below
totaled

■

Beck

s

r

;

Colo.—Paul L.

i

^

.

with

a

'4

were
•

102.4%, or 2,127,000 tons.
production stood at 102.9%, or 2,057,000 tons.

ago
;.

the

(Special

ago

A month ago output stood at

Chronicle)" '

Investment Service Addis

the

an increase of
34.7 points above the previous week's production of
1,294,000 ton§,

affiliated with C. J. Devine &
Co.,
135 South ./La1. Salle Street, ! Mr.
r:

of

97.0%

equivalent

April

14, 1952,
2,015,000 tons of ingots and steel for castings, or

'

previously

■

-«•**.

93%

capacity

selling

CHICAGO, 111.—John B. Nelson
Ralph W. Thompson are now

Thompson was
Reynolds & Co.

a

The American Iron and Steel Institute announced this week
the operating rate of steel companies having

steelmaking

and

per¬

six months

tax

stock

sell it again with the
profit limited to 26%

his

on

long-term capital gains
>

options

officers

To

limited

a

may

extent

afford corporate

without

large

-capital

However, many of them: provide means, who have made an actual
that unless expressly prohibited by contribution to the gain, greater
the

pig iron from 30 to 60 days' supply.

stirred

or

("Special

as

the shape business

/"Steel" magazine.

preceding week.

.

:

•

The week's

total, however, represented a decrease of 32,381
cars, or 4.4% below the corresponding week a year ago, but an
increase of ,7,093 cars, or 1.0% above the comparable period two
years ago.-

v.!

lt.

Electric Output

r:

■>.-

incentives.

(4)
some

,

They

do

.

afford

-

at

...

Inflationary

,

Hedge:

As

(Special

to

,

the

The

Financial

Chronicle)

staff of George C. Lane &
70

Co., Inc..

\l<'

College Street'.'

and power

industry for the week ended April 12, 1952, was esti¬
figure) according to the

mated at 7,150,000,000 kwh. (preliminary
Edison Electric Institute.
The current total

ceding week.

5

(Special
-

to

Hodgdon Co.
The

Financial

:

Chronicle)

BOSTON, Mass.—Matthew Kel¬

ler is
don-&

now

connected

with

Co., 10 State Street,

Hodg¬
v

It

was

was

■.

..

68,831,000 kwh. below that of the

403,025,000 kwh.,

or

«

;

pre¬

6.0% above the total

output for the week ended April 14, 1951, and 1,286,753,000 kwh.
in excess of the output reported for the corresponding period two
years ago.

Joins

least

;

to

NEW HAVEN, Conn. — Robert
O.
Samuelson' has rejoined
the

•

„

degree of hedge against in

flation.

Rejoins Geo. G. Lane

Adversely Affected by Steel Dispute

The amount of electric energy distributed by the electric light

.

lating to stock options are so dis¬
similar that they cannot easily be

general

tories of

of

person in no and John R, Neill have become
connected with the corpora¬ associated with Investment Serv¬
who may at any time buy ice
Corporation,
444 ^Sherman
stock in, the corporation in the Street.
open market and after holding'it
}
*YJ

provisions.

a

lot of

Reflecting the slowness of business in gray iron foundries
an improvement in the balance between
supply and demand
pig iron, the government raised the limits on consumers' inven¬

tion

under the

by

plate mills to production

way

various state corporation laws re¬

typified

those

more

basis than that of

by

a

not

Two With C. J. Devine

tion

unusual

money

of conventional

and

in

the

creative
and
have
respect of
the ceptionally
pursuant to the been responsible for providing

option should be

more

round

use

heavy and wide material.

construction*
is still in the prospective stage*
Wide-flange beams continue to be notably scarce, "Steel" states.
but

government

its bonds to the banks.

meaning of the Defense Produc¬

value; and that the requirement ordinary income tax rates; and
depriving the corporation' of its
(3) It seems only fair that Cor¬
right to claim as a cost or expense porate officers who have been ex¬
transferred

the

scarcest
govern¬

Demand for structural shapes has picked up somewhat
of the easing in government restrictions on

/

depression,
depression, re¬

with

)

.

result

basic heavy industries may either
cause decreased
purchasing power

to prevent a
quire another general

restricted the

of the

it, the Wage Stabilization Board
has made an un-stabilizing award,
which
by raising costs in the

Act, they do afford a satis¬
trols; that the decontrol should be factory means of providing an in¬
less than 85%

ment

Wilson former Mo¬

or,

,

Heavy and wide plates continue to be one of the
items, and to help improve the supply of them the

writer has characterized

one

inflation

0

;

E.

,

steel

bilization Director in protest.> ;

deliberating

whether to grant stock options:

(1)

of Charles

plates or bars.

not

are

in second quarter schedules for cold-rolled
strip. There is some
spotty improvement in cold-rolled sheet buying, but producers of
consumer
durable goods are disturbed by buyer resistance to
prices, it notes.

the

effective

-

The

crowding in to place orders for third quarter
delivery of sheets and strip. Some producers still have openings

again

of

hand.

the best position are medium and large companies whose
are for sheet and strip.
In the worst position are

small companies that use

connec¬

action

on

primary needs

pre-World

to

seem

are

In

textiles)
significant

the limit

below-legal-limits inven¬
more
the result of voluntary action on the part of
than of
unavailability of steel, this magazine asserts.

consumers

Indeed, inflation¬

recommending

offi¬

soon

as

any

have

sumers

three years

such

returning
levels.

pressures

tion

would

was

not "shown

ary

their

Indicative of the reduced pressure for steel is steel consumers^
inventories.
Steel users, on the average, have

the

and

gathering force.

attract

were

prices (except in limited

consumer

options are an in¬
centive device by means of which
may

is 2,919,600 tons, with 3,214,300 planned for the third
quarter and 1,688,800 tons for the fourth quarter, this trade
paper
points out.

tories

War

down.

come

1950—i.e.,

convert

quarter

World

of

corporations

1949, shortly
first com¬

three to four weeks'
supply of steel.
Legally, they're allowed
45-day stocks of most types of steel. Only one-third of the con-

port relating to the Revenue Act

management,

The capacity continues to
grow, thanks to the steel industry's
expansion program, it adds. By the beginning of the second quar¬
ter the capacity had reached an annual level of
109,218,670 net
tons, on the basis of a previously scheduled increase of 631,000 tons
in the first quarter.
Scheduled addition to capacity in the second

/

high price
levels
were
probably
only
a
temporary phenomenon like the
high prices immediately following

Re¬

Committee

work interruption brought a loss of about three
days'
"Steel" estimates the industry's production in the week
ended April 12 averaged 51% of capacity.,/
■
"

about

people

in production the demand

Even the government controllers admitted

output.

was

some

easing.

was

The

ex¬

should not worry about

we

inflation

most

in

of

the

supply and demand for steel would likely be in sufficient
balance by the latter part of this year to permit
lifting many of the

-

At that time

saying

have

contained

study

menced.

ago and

reason

period

a

with

controls from this material.

member

a

connection

For weeks before the short
stoppage

the

study

in

for steel

Income under Present Price Lev¬

by the above referred to laws is:

Finance

as

whose

of Capacity Following

that the

Rocke¬

had

Scheduled at 97%

a brief interruption last
labor-price dispute promised to
keep steel flowing with hardly a noticeable break to consumers,
says "Steel," the weekly magazine of metalworking.

quiry into the Nature of Business

"Why bother with stock options?"
Most of you are familiar with the
Senate

I

Output

Curtailed Operations Last Week Due to Strike Threat

week

three years, and in this connection
wrote a pamphlet entitled "An In¬

Options

first

The

and

$1,328,000,000, the
This 'was

announced.

Resumption of steel production after

of
published since

Foundation.

tended

stockholders

question left unanswered

popular

ranty that it will not claim
cost

in*

compensation; and

(3) The corporation files

en¬

Concepts

pleasure of serving
of

by those who have the best

Reasons

Accountants

feller

Commerce

increases in exports.

Steel
'•

is

is the

.

]

and

business

the

"out clause" in both the

an

holder reception of stock options
has been on the whole favorable,

(2) The board of directors of the
corporation granting the option

•_<

"Changing

Business Income"

interests of a corporation at heart.
(This
goes
beyond There is some
litigation pending.
the requirements of the Internal
But I do not believe that this will
Revenue
Code,
Section
130A,
present any real problem in the
which does not require such con¬
long run although specific stock
dition
to
be
contained
in
the
option plans might have to be re¬
terms of the option, although such
vised in the event of unfavorable
requirement as to the exercise
decisions. It is, of course, always
must in fact be met in order to
easy to achieve cheap publicity at
qualify for favorable tax treatthe expense of executives.
ment.);

terminates.

est

on

of

Department

$1,000,000 above the January level. It was 6% higher than
the- 1951 monthly average/ - February imports
dropped to $892,000,000, from $921,000,000 in January, and a monthly average last
year of $914,000,000.
Machinery and vehicles registered the larg¬

further study of the

a

of inflation

States exports in February totaled

States

about

anyone1 in¬

referred to the recent volume

if

reason,

opinion

the
a

The option by

exercisable

insert

pro-

vided the following additional re¬

*

United

United

beginning of this year, which
Report of the Study Group
on
Business
Income,
financed
Plan and Proxy Statement in the
at
jointly by The American Institute
event there is in the

plans, the Board decontrolled
stock

175,000,000 bushels larger than the 1950-1951 total.

*

connection

some kinds of fertilizer are expected to be in short
In another forecast, the department estimated 1951-1952
corn
production at 5,300,000,000 bushels.
This would be

supply.

hedge against in¬

a
•

this

terested in

Oct. 30, 1951) relating to preemptive
rights
constitute
a
options and stock purchase problem, it is probably prudent to

stricted

as

flation.

to

back to
stock
-

.

However,

three-;

or

shares entitled

preemptive rights with
were exercise
Salary respect thereto. Some States also
No.
4, provide a right of appraisal for

General

stock

mon

tionary if certain conditions

*

with

a

com¬

issued and sold with the writ¬

so

ten consent or. affirmative vote of

granted

Industry

The agency estimated that farm costs will rise 5%
to 6%.- Despite
rising costs, the department said, supplies of mosfr'
items farmers use should be sufficient to allow
high farm output.

(without

options do involve

restricted

.

as

The State of Trade and

provide dollar value of such
stocks, and
apparent
regard
for
(ii) the full extent of the de¬
eration, are at least potentially what may be inherent preemptive
creased purchasing power Of the
inflationary under certain cir¬ rights possibly not subject to re¬ dollars so realized. The
combined
cumstances, and consequently are moval by statute) that shares sub¬ effect of these
two items greatly
subject to its jurisdiction. At the ject to preemptive rights may be reduces the
effectiveness of

*

"

releases, dealing

stocks

i

•

.Agriculture.

These articles

believe.

hedge against
inflatiori/ failed to take account
of both (i) the capital gains tax
payable on any realization of the

charter

a

by-law provision or a
plan approved by stock¬

written

stabilization Board has ruled that
*

.

press

to

common

stock

muneration."

us

and

"

is whether

Continued from page 5

flationary hedge provided by a
stock option is not nearly so great
as
might 'be imagined at firstthought—nor as great as recent
Stock
Exchange articles would

37

f »s
i

1

.

•/

\

iJ' *'*

U. S. Auto

Output Advanced Slightly the Past Week

Passenger car production in the United States the past week,
according to "Ward's Automotive Reports," rose to 92,305 units,

Continued

on

page

38

The Commercial and Financial Chronicle

(1630)

Tomorrow's

Says—
By WALTER WHYTE =

=

I

As

steel

the

this

write

fying because the stocks went
up, made profits and I could
take bows. But buying stocks
any slack in business brought
on such a basis under present
about through a peace can be
conditions is far-from
taken up by American know- day
Trading, with the
how for the benefit of a con¬ practical.
existing margin restrictions,
sumer
economy.
Unfortu¬
is practically impossible.
nately, this is only a hope; not
Holding them practically out¬
a conviction.
There is the

Whyte

plant take-over by the Gov¬
is

ernment

confused

as

least

they were gr^ti-*'

*

sie

5*

Markets
Walter

I've assumed

which it is built.

At

results.

on gratifying

foundations

the

shaking

deep hope that

as

market

the

However

right and selling them in less
than six months brings ;,the

*

*

department in for a-big: ,
serious signs chunk.
any new or impending re¬
developments which subse¬ actions.
The signs in
fact
These are all problems no
quently occurred were still in point the other way. What to
general advice can solve. One
the future. Since then you've do about it is a
question the can point to a direction and
When last week's col¬

ever.

either heard

or

ments of the

doesn't give any

steel of

the

written

was

umn

tax

read the state¬

principals in the

be

to which must

answer

rived at

ar¬

let it go

controversy.

pat reply to buy this stock or
5<S
❖
*
that stock, or sell this or that,
But despite the news of the won't solve the multitude of

Right
seems

gestion

past few days, and the cer¬ problems that face each po¬ retained
tainty of more news in the tential buyer and seller of
appear.
same vein
in the immediate stocks.

V

ket

caught flatfooted by
will it

was

frequently suggested
purchase of certain spe¬
foreseeable future. cific issues, with occasional

the turn of events, nor

be in the

danger to any fip?ther advance is a sharp cur¬
tailment of defense spending.
is

possible that a firm
pledged peace bringing an
end to Korean hostilities will

built
to

can't,

cannons

on

come

halt without

complete

a

An economy

reaction.

a

even

unsettlement and

some

cause

Continued from page

that holdings be
until new
signals

Pacific Coast

do

Established

those of the

1919

Members
York Stock Exchange

York Curb Exchange (Associate)

San Francisco Stock Exchange

Chicago Board of Trade

author only.]

York Cotton Exchange

14 Wall Street

New York 5, N. Y.

Teletype NY 1-928

Principal Offices

Francisco—Santa

Barbara

Monterey—Oakland—Sacramento
Fresno—Santa Rosa

PUT

OPTIONS

@48
July
7 $500.00
Tex. Gulf Sul.@107%May 12 625.00

like period a

and 3,089 trucks in the preceding week
similar period of a year ago.

6,297 cars

Commercial

and

industrial failures

totaled 184 in the week

trade groups except retailing which was 5 below
concerns failing than a year ago.

1951 had more

geographic regions reported weekly,
rises in failures.
The only decline occurred in the Middle Atlantic
States where mortality dropped to 54 from 91.
This region had
the only marked decline from 1951, while slight dips appeared in
three other areas and New England held steady.
More businesses
failed than last year in the Pacific, South Atlantic and East South
Central States, with the latter two areas having notable rises.
Wholesale Food Price Index Drops to New
In

a

continuation

of

the

downward

21-Month Low

movement

now

in

its

food price index, compiled by Dun &
Bradstreet, Inc., fell 3 cents to stand at $6.37 on April 8.
This
represents a new low since July 11,, 1950, when it stood at $6.28f

337.50

of 10.9%.

Phillips Petrol.@56% June 2
Cities Service@105V2July 1®
!Mo.Kan.Tex.pf.@55
June 2
Doug. Aircraft @56% June 9
Sunray Oil ...@23
July
7

387.50

Union@41V2 June 13

225.00

•

11

mos.

and it is
pares

in

587.50

30 days,

THOMAS, HAAB & BOTTS
Members Put & Call Brkrs. & Dlrs. Assn., I nc.




pound
and its chief function is to show the

represents the

sum

Wholesale

total of the price

per

Tel. B0 9-8470

commodity

price

index,

Dun & Bradstreet, Inc., moved steadily lower last
at 301.33 on April 8.
This compared with 301.78 a
and with 323.01 on the

Grain markets

corresponding date

were

nervous

and

con¬

substantial,

was

of

stock

Spot

increased

cocoa

to

week ago,-and compared with 125,16-3

down moder¬

were

'

wiped out earlier gains... Strength'in the fore part of the

price-fixing and the expectation of, a ~
tight spot supply situation,,; while; declines in late dealings were
influenced largely by continued dullness in textile markets,i easi¬
ness in some outside markets and
reports of further rains in the
western part of

the belt.

.

„

Foreign inquiries for cotton
of sales for

quite

were

numerous

but volume

export remained small.

pound was un¬

a

Showed Perceptible Improvement Due to

nearness

Buying and Good Weather
pleasant weather in most parts

of Easter and the

instrumental in lifting retail trade perceptibly

were

in the period

ended on Wednesday of last week.

While shoppers
Eastern had
passed, most
volume was
slightly below the comparable pre-Easter week in 1951.
Many
than at this time a year ago when
merchants reported that their sales

bought more

stores resorted to

reduced-price promotions and to extended shop¬

a year

compiled

tion.

ago.

unsettled with prices gener¬

ally showing moderate losses from a week ago.
Considerable
selling pressure developed, largely reflecting continued weakness
in other commodities, coupled with current and threatened strikes
in leading industries.
Wheat showed some strength early in the

cau-

.

,

dollar volume

retail

in the period ended'

in the nation

Wednesday of ,last week was estimated by Dun & Bradstreet
to be from 4% to 8% higher than a year ago, the largest .year-to-

on

levels of

a

New

as

Regional estimates varied from the

rise since April, 1951.

year

year ago

by the following percentages:

j

England +4 to +8, East and Midwest +5 to +9, North¬

+4, South and Pacific Coast +6 to +10.
a

pronounced rise in shopping last week

While virtu¬

preparations for Easter drew increased attention.
all

ally

departments

apparel

demhnd

high

especially

was

sold

than

more

weeks,

recent

suits, millinery

women's

for

in

children's clothing.

and
;

>

displayed keener interest in better-grade

Shoppers generally

apparel than in budget items.

keeping with tradition, the rise in the demand for men's

In

,

clothing

not

was

sharp

as

as

for women's apparel.

sold slightly more food the past week as house¬

There was a market rise

wives prepared for the coming holiday.
in the call for candy, beverages and

novelties.

Dairy products and

sea-food continued to be widely popular.

in household goods was generally limited

The rising interest
to

items

seasonal

such

as

decorating materials, garden

supplies

While large furniture pieces, appliances and tele¬

and hardware.

vision sets remained in reduced demand, the

sales of bedding rose

Promotions of outdoor furniture evoked little interest.

modestly.

activity in

Trading

many

unchanged the;?past week.

wholesale markets was virtually

The total dollar volume of wholesale

trade, buttressed by many orders for defense needs, did not vafy
sharply fromjthe high level of
were

a

year

earlier.

Retailers' orders

generally-, confined to hurried requests for seasonal
?1"V

chandise.

'

•

*

"

'

mer¬
r

Department store sales on a countrywide basis, as taken from
the

Federal

Reserve Board's index

for the week ended April .5,

18% from the like period

of last year.

In the

preceding week an increase of 13% was registered above the like
period

by

week earlier,

increased consumer

of the East and Midwest was reflected in

the

week to'close

Labor unrest in many parts

ping hours to spur shoppers' interest.

For the four weeks ended April 5, 1952, sal'es

a year ago.

For the period Jap. 1 to

declined 1%,

Commodity Price Index Trends Steadily
wholesale

nearby

few inquiries noted.

very

Coffee:^qt;ui:es*ia'S;iiV:^Tasi;.s^dTrprices

April 5, 1952, department

decline of 9%

below the like period of

sales' registered

a

a

week

sales

ago

'

1

preceding year.
Retail

daily

for

make

Spot cotton pribbs showed little .change for the week as late

Downward in Latest Week
The

to

vegetable oils and continued heavy marketings of live hogs.

store

400.00

and 6 month options.

4

index

lots

mills

ately,'reflecting-slow demand for• green coffee:by,.roasters who
report a slowing down of demand for Jhe finished product.
Sugar
prices were steady and firm.
Lard continued undfer pressure and
prices moved irregularly lower; influenced1 by further weakness

1952, increased

of 31 foods in general use
general trend of food prices at the wholesale level.

212.50

Explanatory pamphlet on request

50 Broadway, New York

only 6.9% above the pre-Korea level of $5.96.
It com¬
with $7.15 on the corresponding date a year ago, or a drop

The

Subject to prior sale or price change

We also make quotations for

a

487.50

Ygstn. Sb. & T.@45% Sept. 8 337.50
Elliott Co. ...@26%Aug. 11 287.50
Molybd. Corp.@44% 5 mos. 875.00
Chrysler
@74% 6 mos. 587.50

60 days, 90 days

101,403 bags, from 97,831

Apparel stores noted

other industry and

487.50

675.00

small

many

Warehouse

month.

over-..a

west and Southwest 0 to

All industry and trade groups except manufacturing had
higher mortality during the week.
Manufacturing casualties fell
to 26 from 53 last week and were one below the 1951 level.
All

2

Woolen @32

dull with

was

Food stores

Lion Oil

June

of

prices registered small declines the past week for the first
in

-last year;;

year ago.

Steel...@49%May 17
North. Pacific.@87%July 14
Illinois Central@65Vz June 2
Canad. Pacific @40
July 7

Betbl.

Amer.

time

Steady

fourth week, the wholesale

.....@44

willingness

buying of flour the past week

trade

export

cocoa

and

preceding week's 185, Dun & Bradstreet, Inc., reports. Casualties were heavier than a year ago
when 172 occurred, but slightly lower than the 201 in 1950 and
off sharply, 41%, from the prewar level of 313 in the similar week
of 1939.
' ;
Liabilities of $5,000 or more were involved in 154 of the week's
failures compared with 150 last week and 126 in the comparable
week of 1951. There was a dip in small casualties, those having
liabilities under $5,000, to 30 from 35 in the previous week and 46

425.00
287.50
975.00
487.50
437.50

Western

Government

but

Total

of 92,305 cars
25,160 trucks built in the United States, against 91,074 cars
25,208 trucks (revised) last week and 121,492 cars and 31,417

...

Petrol.@39V2 July 7
Paper @49
June 10

remained very quiet with

scattered

to

cessions.

The

Seven of the nine major

Per 100 Shares

Internt.

restricted

despite

Trade Volume

period a year ago;
Canadian output last week fell to 4,980 cars and 2,295 trucks,

a

COrtlandt 7-4150

Internt.

requirements

37

Business Failures Hold

INVESTMENT SECURITIES

Anaconda

bookings

previous week, and 72,600 in the corresponding week a year ago.

of

7,265 cars and 2,665 trucks in the

Schwabacher & Co.

SPECIAL

domestic

year ago.

a

Demand

the

those

with

ended April 10, one below the

San

Flour prices were easier.

They are presented as

Chronicle.

trucks in the comparable

Coast Exchanges

Private Wires to

27,000,000 in the like week

and

changed from a month earlier.
Sales in the ten spot markets
totaled 112,600 bales for the week, as against 125,300 bales in-the

high for the year, but was about 24% behind the
year ago.
.>■' '
Total output for the current week was made up

Orders Executed on

New

bushels last

declined

necessarily at any

not

coincide

in this

compared with the previous week's total of 91,074 (revised) units,
and 121,492 units in the like week a year ago.
Passenger car production in the United States advanced last
week about 1% above the previous week's figure which set a new

against

Securities

New

Trading in all grain futures on the Chicago
slightly to a daily average 26.000,000
week, comparing with 28,000,000 the week previous,

Trade

The mid-March parity price at 34.47 cents

expressed

The State ei Tiade and Industry

and

New

rains.

of

of

of the nation

and

Pacific

Board

Easter

The real

It

time

because

t'fi

%

*

I have

the

article

is

direction

So the sug¬

be up.

views

[The

future, I don't think the mar¬

the

now

to

at

mand

week was attributed to mill

❖

❖

%

Oats and rye met with fairly good de¬
times, but prices'worked lower along with other .grains.
Seeding of oats was reported behind normal in many sections

corn-nog teeding ratios.

declines

at that.

by the individual. A

*. Thursday, April 17, 1952

.

in New York last week

and

were

about

3%

to

advanced

4%

better

over

than

those of

the

period of 1951.

like
-

According to the Federal Reserve Board's index, department
City for the weekly period ended April 5,

store sales in New York

1952, increased 4% above the like period of last year.
ceding week anvincrease of 16%
week of

was

In the

pre¬

recorded above the similar

1951, while the four weeks ended April 5, 1952, a decrease

week, but later declined, influenced by the continued good outlook
for Winter wheat in the Southwest and the current lag in export

of 2% was

trade.

Jan. 1

ttjTApril"5,1952; volume declined 11% below the like period

and

of the

pYeC^'ding year.

Liquidation in corn was attributed to weakness in fats
oils, the low level of hog values and the continued unfavorable

registered below the level of a year ago.

"

For the period

Number 5108

175

'olume

; ;

.

Continued from page

7

ontinued from page

Firms

Dealer-Broker Investment

Chemical

and will often be in a position to

ahead of time

raw

investor

tne

materials and

more

into

process on paper can run

a

;

to

Y

that

know

his

is commercially feasible
and his engineers reliable.
An¬
other danger spot is in adopting a
foreign process to American eco¬
nomics.
' Labor
in
Europe
is
process

A
therefore, often

cheaper than in this country.
European process,

greater man-power than
can be
economically spent, in the
United States.
Other cost'factors

needs far

of many
metals, wood, concrete, etc.
Syn¬
thetic fibers are replacing wool
and cotton in increasing volume.
The facts are that the process in¬
dustries are beginning to dominate
our total industrial picture.
In the
decade since 1939, the production
chemical's

of

has

National

doubled while all

ing

fact

difficulties can be
introduc¬

Similar

lene.

encountered

Take

danger

in

exists

risks

investing in the chemical process

Building

industries.

'

laboratory,

in the

Louis

be
necessary before the commercial
plant- can be put on stream. This
time lag must be taken under con¬
in

sideration

ect

r e sp

Shaw Oil &

changes possible

through research.

the. plant is ready t®
produce,? further developments

; Even before

Merrill

ring

these

same

&

construction
net only less economical, but even
completely obsolete.
In making
the new tuberculosis drug, in just
over

30

days, mne

manufacturer

stock of Carolina Power

public at $35,12Yz, per share.

Merrill Lynch,
Beane

and

R.

S.

Pierce, Fenner &
Dickson & Co.,

Boston 9,

application to the 1952

which it is

construction program

presently estimated will involve
an expenditure of $75,078,000.
In

the System will spend
approximately $3,000,000 in 1952
for the purchase of "cushion" gas
addition,

Securities

underground storage.

for

order

In

ently anticipated that the corpo¬
ration will be required to raise

approximately $18,000,000 through

York 5, N. Y.

additional financing.

Co.—Report—Dempsey-Tegeler & Co., 210
Angeles 14, Calif.

The

corporation will provide a

sinking fund to retire $42,550,000
of the new series C debentures

& Co., 148 State Street,

June

(Chicago, III.)

at the Knollwood Country

Lake Forest.

EVENTS

Tune 6,

Field

1952 (New York City)

Security Traders Association oi
York-Investment Traders As¬

New

bowling
?: ?•, .-Y-

June 10-13, 1952

of

annual

dinner

the

at

at

Hotel, St. Andrews*

by-tfte-Sea, New Brunswick.

Security Traders Association of
York

convention

annual

Canada

the Algonquin

April 18> 1952 (New York City!

(Canada)

Investment Dealers' Association

sociation of Philadelphia
,

Club.

Hollow Country
Scarborough, N. Y.
Sleepy

Waldorf Astoria.

June

(New York City)

13, 1952

Municipal

Club

Bond

of

York annual outing at the

the

terest.

Bond Club of New York outim

(New York City)

re¬

are

sinking
fund
at
prices
ranging
from
100.90% to par and at regular
redemption prices ranging from
104.45% to par, plus accrued in¬
through

deemable

field day
Club in

Bond Club of Chicago

COMING
Investment

6, 1952

debentures

The

1954.

in

New

annual
beginning

prior to maturity through

Mass.

tournament.

1952

it is pres¬

payments of $1,850,000

April 17, 1952

the

complete

to

construction program,

(ask for No. R-10)—Singer,

Twist Drill—Data—Raymond

Union

prepay

for

funds

Seventh Street, Los

West

will be

20,000,000 of bank notes, with the
balance to be added to its general

Y.

Mackie, Inc., 40 Exchange Place, New

Stromberg-Carlson

by

New
West¬

System, Inc.,

The Columbia Gas

public utility holding company,
was organized
under the laws of
Delaware on Sept. 30,. 1926, at
a

Gas

Columbia
The

-

Electric

&

natural

gas

holding company,

the

Corp.

interconnected
system composed of

System is an

ing subsidiaries and a
service

company.

customers

serves

wholesale in Ohio,

15 operat¬

subsidiary

The
System
at
retail c-.i

Pennsylvanir

West Virginia, New York, Ker
chester Country Club and Beach
have -also placed privately April 24, 1952 (Boston, Mass.)
tucky, Maryland, Virginia, and th<
Boston Investment Club dinner Club, Rye, N. Y.
50,000 shares of no par value $5
District of Columbia.
preferred stock, cumulative, of the meeting at the Boston Yacht Club.
June 13, 1952 (Philadelphia, Pa.) Y
At Dec. 31, 1951, the System
./utility company. Sale of the pre¬
Investment Traders Association operated 33,627 miles of gas trans
ferred-stock will be consummated April 25, 1952 (Philadelphia, Pa.)

Inc.,

developed simultaneously with the delivery
different process of the common stock to the under¬
one - first > announced. writers. -rY:YYY;Y.?^-Y";?.Y .:;;Y; ,Y Y;

announced that he had
a;

Corp.—Report

Factors

Bean &

The stock is priced

Light Co.

.to the

product.

developments may,

plant under

make the

<

the

making

Both of

offertoday... .200,889 Y'"s hares of

common

have been developed or even
completely new process found

for

Lynch; Pierce, Fenner &
R...S. Dickson & Co.,

and

Inc.,

Co.—Memorandum—Emanuel, Deetjen &
Co., 120 Broadway, New York 5, N. Y.

Standard

from the sale

the company to

Proceeds

Socony-Vacuum Oil

Use
technical

Inc.,: head a group which is

may
a

Chemical Corporation—Report—Hunter

System,

used

Angeles—Memorandum—
Eighth Street, St.

Corp., 52 Broadway, New York 4, N.

Y-;v'Y'' yY;yYY■. Y

Beane

Also

North

407

Co.,

&

at

to- the

Gas

and review of the Cement
10#Post Office Square, Boston, 9,

the

Common Stock Offered

$60,000,000 The Columbia
Inc., 3%% deben¬
tures,
series
C,
due
1977, at
100.929% and accrued interest.
of

sue

Staats

R.

Lewis,

R.

Ltd.—Analysis—John

Carolina Pow. & Li. Go.

pilot plant, a longer time may

Halsey, Stuart & Co. Inc. and
are offering a
new is¬

associates

1, Mo.

In

in the

even

or

aid.

to
is still

Offers Col. Gas Debs.

Co.—Analysis

Cement

Dempsey-Tegeler

peculiar to chemistry.

the fullest competent

Halsey, Stuart Group

Avenue, Seattle 4, Wash.

Second

Security First National Bank of Los

than
Our

that you recognize

wood Beach Hotel.

Mass.

to

sure

one

If the process

two years.

to

major plant

a

take anywhere from

may

Corporation—Analysis—William

tunities, but look before you leap.
Make

Annual Convention at the Holly¬

Sincere and Com¬

Pfeiffer Brewing Company.

on

Industry—Lerner & Co.,

industries offer
investment opportuni¬

other

—

Steel

Riverside

i

enterprises.
potentialinvestors;
advantage of these oppor¬

most

(Hollywood, Fla.)

Company—Bulletin—Dean Witter & Co., 14

Development,

Placer

industrial activ¬

Yet the risk is greater

caution

r;fYY:

pitfalls. Y:YY> ? "YY,r.ri
another

in

the

of

number of these

to- encounter any

Still

ties.

almost certain

is

trade

chemical

tricks

the

with

familiar

process

Analysis

Co., 640 South Spring Street, Los Angeles 14', Calif.
available is an analysis of the Fluor Corporation, Ltd.

process

wonderful-

outside
country.' The investor not
American

an

of this

be

must

chemical

in reverse,

—

&

be cited, but one
re-emphasized; the

could

amples

&

bulletin

1006

Rone?

Investment Bankers Associatioc

portfolio changes—Ira Haupt

on

Chicago 4, 111.
Accident Insurance Co.—Memorandum—Clark,
KIrkpatriek, 407-B Union Street, Nashville 3,

Norris-Thermador

be actually deceptive. Acryl- ity was unable to keep this pace.
plastic is made in Europe from Expenditures for new plants and
lactic acid.
Investigations have e q u ipment have more than
doubled the value of fixed assets
shown that in our domestic econ¬
since 1945.
Many other like ex¬

this process cannot compete
manufacture from acety¬

a

the

at

Nov. 30-Dec. 5, 1952

is

Corporation—Bulletin—Gartley & Associates,
Inc., 68 William Street, New York 5, N. Y.
Also available

ate

with its

Corporation

Supply

Newport
is

Convention

Plaza Hotel.

Street, New York 5, N. Y.

Wall

than

more

ciation

Tenn.

may

omy,

(Miami, Fla.)

Security Traders Asso¬

231 South La Salle Street,

Land street

territory

the

invaded

National

Broadway, New York 6, N. Y.

National Life &

Y

Plastics have

products.

soap

Co., Ill

pany,

use

must

&

Nash-Kelvinator

amount of proper

investor

Corporation—Bulletin

Lehman

Fall

Governors

Limited—Circular—Aetna Securities

Minerals

&

Corp.,, Ill Broadway, New York 6, N. Y.
Also available
a circular on Russell Reinforced Plastics Corporation.

processes

a
minimum mestic rubber production is syn¬
Before the war* natural
solvents in order thetic,
latex had no competition.
Fer¬
to keep costs as low as possible
tilizer
use
is
increasing much
and obtain the maximum yields of
faster than food production.
Syn¬
the
chemical from each ton of
alfalfa.
In purification,
further thetic detergents are both replac¬
difficulties are encountered.
The ing' and complementing soap and

is

trick

The

Oils

Harman

efficient

available to the chem¬
too much trouble.
Often a process ical industries, thus reducing the
price of products and enlarging
may look deceptively simple, but
The
in tactual ; operations intimate their potential markets.
know-how is required to make the chemical industries have grown
process a success.
More than one very rapidly, In fact, the products
of chemical synthesis are growing
company has learned this lesson.
faster than the economy in gen¬
Chlorophyll, for example, can be
More than half of the do¬
extracted
from
alfalfa
readily. eral.

if

of

meeting in Los Angeles and San
Francisco.

Recommendations & Literature

cheaper

markets by making

new

Exchange

Stock

of

Board

Oct. 19, 1952

Process Industries
warn

(Los Angeles, Calif.)

Oct. 6, 1952

8

Association

Risks in Investing in

35

(1631)

The Commercial and Financial Chronicle

completely

distribution

and

fiel

V Eastern

mission,

Investment

gathering pipelines, 130 gas com¬

Pennsylvania Group of of Philadelphia summer outing at
Bankers
Association the Whitemarsh Country Club.
third
annual
conference at the
June 16-17, 1952 (Detroit, Mich.)
Bellevue-Stratford Hotel.

pressor stations, 12 liquefied pe¬
troleum
gas
plants, 36 under¬
was-going into Y; Proceeds from the sale of the
storage
reservoirs ant
Bond Club of Detroit-Security ground
large-scale; production, a pharma¬ common and preferred stocks will
May 1-2, 1952 (Galveston, Tear.)
Traders Association of Detroit &
9,817 gas wells, including storage
ceutical firm had-one plant prac¬ be used by the company for the
Texas Group of Investment Michigan joint summer outing- wells. In connection with its gas
tically completed,-, when its own construction of new facilities and
utility business, the System also
Bankers Association Spring Meet¬ June 16 at the Detroit Boat Club
research staff came out with
a for other corporate purposes. The
conducts gasoline and oil opera¬
June 17 at the Lochmoor Country
radically different and improved company estimates that its con¬ ing at the Hotel Galvez.
tions and at Dec. 31, 1951, oper¬
Club.
YyV > .?' Y"-'
process.
The company decided to struction
program
expenditures May 4-8, 1952 (San Francisco, Cal.)
ated 13 gasoline extraction plants
go ahead with the new method during the period
from Jan. 1,
June 18,1952 (Minneapolis, Minn.)" and 1,1>13 oil wells.
National Federation of Finan¬
and
in
effect, hardly used the 1952 through the year 1954 will
cial Analysts Societies Fifth An¬
Twin City Bond Club annual
Consolidated net income of the
original-plant for penicillin pro¬ approximate $67,000,000.
nual Convention at the Fairmont
picnic at the White Bear Yacht corporation and its subsidiaries
duction.-. :
' Y ?\. ;.Y,
Y YYY.
Carolina Power & Light Co. was Hotel.
! v Y"' "Y
for 1951 amounted to $17,326,089
.:mYy':,; YY -Y.Y Y.¬ Club.
:Y;Y —Y
As mentioned above, construc¬ organized
in 1926 through a
compared with $17,527,884 in 1950
tion, is rather lengthy..
The in-.- merger and .consolidation of five May 9-10,1952 (Los Angeles, Cal.) June 20-22, 1952 (Minneapolis,
Gross revenues were $188,431,886
vestments in chemical plants, on utilities and' in February, 1952,
Minn.)
National Federation of Finan¬
for 1951 against $159,934,174 for
the other hand, is generally high. Tide Water Power Co. was merged"
Twin City Security Traders As¬
cial Analysts Societies Fifth An¬
1950.

from

the

-

penicillin

When

.

This

addi¬

into

these industries.

The

combination
risks

tional

for

creates

Carolina Power

& Light Co.

;

nual

Convention

at

the

Ambas

sociation

annual

summer

operates in North sador Hotel.
"Operation Fishbite"" at GrandIh many cases- it may fake from Carolina and South Carolina and
view Lodge on Gull Lake.
four to five years before the red is
engaged
in
the
generation, May 14-17, 1952 (White Sulphur
ink is removed from new chem¬ transmission, distribution and sale
June 27-29, 1952 (Coronado, Cal.)
Springs, W. Va.)
ical enterprises.
Y* Y ;?'Y
■ V to the public -of electric energy
Spring Meeting of the Board oi
Security Traders Assoeiation of
of
the
Investment Los
both at retail and at wholesale. Governors
Angeles annual spring outing
Still Opportunities in Chemical
The company also engages to a Bankers Association.
company

Remhard With Becker
(Special

Industries
minor extent

Yet,

the

t

dustries

are

process in¬
still the land of eco¬

chemical

,

opportunities. - Chemical
research, which up to here has
been cast as the" villain of this

and

in the

distribution

distribution

of

manufacture
gas

of water.

nomic

piece,

growth

May 16, 1952

the

(Baltimore, Md.)

Baltimore Security Traders

The esti¬ sociation 17th annual

at
the
population of the ter¬ ing
Maryland.
ritory served is in excess of two

mated total

.

summer

Country

June 28, 1952

As¬
out¬

Club

of

Bond
summer

del Coronado.

(Chicago, 111.)

Traders

party

Club

at

of Chicago

the

has

hard

G. Becker & Co.

A.

Langford

Links.

120

South

past

supply shortages.

tomers,

12,000 gas customers and

It can open up 3V0DTT wafer customers.




Firms Board of Governors

Meeting.

Incorporated
Street. For

Mr. Reinhard
Cruttenden & Co.

years

Partnership Changes
from

Silverberg

P.

retired

Spring

American

Bankers

Annual Convention.

Association

Faroll &
April II. On April 18,

partnership

Company on

'

products.
ft is often instrumental in solving

10

has been with

Arthur

in reality the healthy million.
The
company has
ap¬ May 19-21 (Richmond, Va.)
Sept 28-Oct. 1, 1952 (Atlantif
factor of" the industries, proximately 331,000 electric cus¬
Association of Stock Exchange
City, N. J.)
develops new

Salle

La

-

is

Research

*

and

the Hotel

Chronicle)

III.—Godfrey Reinbecome associated with

the

at

Financial

te The

CHICAGO,

.

:

y;;:

outing

Baraett

Faroll,

will become a

in

general

partner,

Ihmted partner.

«D

The Commercial and Financial Chronicle

(1632)

to

runs

output
fuel

Distillate

5
5

116,527,000

6,590,060

6,092,000

-Apr.

5

21,410,000

21,837,000

(bbls.)

5

2,598,000

2,750,000

2,301,000

Apr.

5

9,434,000

9,712,000

8,988,000

Apr.

5

8,865,000

8,846,000

8,877,000

(bbls.)—.

at

Distillate

fuel oil

Residual

•

fuel

ASSOCIATION

at

AMERICAN

OF

158,695,000

Total

16,533,00©

16,179,000

5

43,751,000

48,445,000

33

304

377

72

70

183

5

36,905,000

37,049,000

number

Z'

:

liabilities—

liabilities

;

"

*

-1

52

:

69

619

VZ

715

'

$13,046,000

1

—

732

$5,614,000

-

3,728,000

^$5,16.9,000

'

6,548,000

2,233,000

—L

liabilities

Construction

,

2,211.000
'

6,905,000
:

liabilities

service

2,486,000

-

1—

,

4;563,000

1,935>000
1,649,000

$29,232,000

liabilities

Commercial
Total

RAILROADS:

freight loaded (number of

Apr.

5

707,142

freight received from connections (no. of cars)„Apr.

5

658,406

cars)

,

714,247

.

liabilities

COMMERCIAL

739,523

690,485

723,473
672,762

699.053

ERAL

As

„

PAPER

$19,474,000

5,605.000
*

3,292,000

1,375,000

OUTSTANDING—FED¬

•

•>

r

'

$17,652,000

■«

BANK OF NEW YORK—

RESERVE

of March 31

(000

'O

omitted)— —u

s

ENGINEERING

—

55

—

—

'

37,375,090

Revenue

CONSTRUCTION

—c

—

46,030,000

Apr.

—

Revenue

ENGINEERING

60

371

__

Manufacturing

14,989,000

-

4DVYIL

number

115

133

-

69

___

number

Wholesale

.

147,838^000

-Apr.

at

(bbls.)

148
_

Commercial service

Retail

158,304,000

-Apr.

.

(bbls.)

oil

Ago

__

number

19,306,000

6,376,750

♦Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bills.) at
Apr.
Kerosene

Year

Month

BRADSTREET,

number

Construction

6,126,800

6,401,650

Apr.
—Apr.

(bbls.)

(bbls.) —

output

&

Previous

March:

of

Manufacturing number
Retail

Apr.

output

oil

2.057,000

2,127,000

1,294,000

2,015,000

of that date:

are as

-

(bbls.).

oil

fuel

Residual

FAILURES—DUN

Wholesale

output

Kerosene

Apr. 20

of quotations,

cases

either for the

are

Month
BUSINESS

102.9

INC.—Month
•

in

or,

Ago

102.4

Thursday, April 17, 1952

Latest

output—daily average (bbls. of

stills—daily average
(bbls.).

Gasoline

Ako

62.3

97.0

——Apr. 20

each)—

gallons

42

Crude

condensate

and

Week

that date,

on

.

production and other figures for the

cover

Year

IN8TITUTE:

PETROLEUM

oil

Crude

Month

Week

capacity).

Equivalent to—
1
Steel ingots and castings (net tons)
AMERICAN

month ended

or

Previous

.

Dates shown in first column

month available.

or

Latest

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (percent ol

latest week
week

Business Activity

tabulations

The following statistical

of Current

.

$534,000

$517,000

.-■]

!

NEWS-RECORD:
Total U.

Apr. 10

$345,654,000

$223,806,000

191,279,000

107,670,000

construction

State

188,188,000

Apr. 10

140,953,000

154,375,000

116,136,060

122,980,000

-Apr. 10

81,360,000

101,826,000

73,907,060

69,562,000

Federal

42,229,000

53,418,000

—

municipal

and

»• "•»'

;

(li.IS. BUREAU OF MINES):

■

Bituminous

(tons)

Pennsylvania

anthracite

Beehive

(in

output

;

546,000

697,000

733,000

5

109,700

♦132,400

144,900

,

v

5

315

292

254

292

7,150,000

♦7^18.831

7,413,795

6,746,975

Refined

(COMMERCIAL

BR AD STREET.

Finished

steel

&

DUN

—

J-

156

•
•

Cake

172

Pig iron (per gross ton)
steel (per gross ton).

Scrap

4.131c

4.131c

8

4.131c

4.131c

$52.72

$52.69

$42.00

$43.00

8

$52.72

$52.72

8

$42.00

$42.00

.

'

Export

24.200c

24.200c
i

24.200c

27.425c

27.425c

27.425c

Shipped

(New York)

121.500c

121.500c

121.500c

19.000c

19.000c

19.000c

18.800c

18.800c

18.800c

16.800c

19.500c

19.500c

19.500c

Stocks

Linters

17.500c

24.425c

Stocks

9
9
9

93.05

97.28

96.73

98.69

110.15

109.97

109.60

112.19

114.46

114.27

113.70

115.63

Stocks

112.75

112.56

114.66

108.88

103.97

*\

107.27

150.500c

109.60

113.50

113.50

+*
.

109.06

109.24-

;

112.19

113.31

115.24

DAILY AVERAGES:

Apr. 15

3.16

3.17

3.19
2.97

received

3.02

3.03

2.92

3.21

3.23
3.51

3.32

COTTON

spindles

spindle

Active

OF

432.1

433.6

438.8

515.9

271,607

189,705

282,301

328,223

205,178

253,702

5

140.7

EXCHANGE—SECURITIES
Odd-lot

sales

dealers

by

Number

of
of

198,922

201,244

84

330,443-

-

106

86-7',,

432,507

141.0*-

Mar. 29

Number

(customers'

of orders—Customers'

total

29,249

834,611

830,857

$39,338,464

$37,899,500

•

30,320

All

•

832,412

821,113

$39,952,157

$34,246,152

Mar. 29

sales

24,766

24,650

23,237

•

24,846

.—Mar. 29

131

210

Net

Mar. 29

24,614

24,519

23,027

24,399

Mar. 29

697,299

684,140

644,721

691,592

sales

152.

of

Income

Income
Other

available

after

16,981

674,611

Depreciation

(way

_Mar. 29

$31,192,645

$29,231,928

$27,441,990

$27,785,049

Amortization

of

—Mar. 29

181,280

Number

I

Z

176,350

170,230

203,710

I_Mar.

29

181,230

176^350

170,230

203Z710

Mar. 29
ON

THE

NEW

342,130

311,620

372,190

201,498,637

94,178,149

162,819,872

59,329,929

4,505,435

2,929,375

equip.)

—

12,158,451

41,363,083

150,661,421

56,294,777

38,891,509

;

structures &

&

defense

43,071,880

37,470,668

projects

3,035,152

d 40,209,947

22,343,617

6,147,434

7,086,658

6,077,899

6,595,882

2.25

5.21

2.70

$1,246,000

$1,076,000

914,000

921,000

909,724

$275,000,000

$275,000,000

$275,000,000

258,083,504

260,361,955

254,997,006

40.582

36,915

20,637

$258,124,087

$260,398,871

$255,017,643

651,347

653,576

692,885

$257,472,739

$259,745,294

$254,324,753

15.254,705

20,675,241

$258,124,087

$260,393,871

$255,017,643

6.840,071

5,075,105

8,569,161

$251,284,016

—

50,783,861

5,469,706

taxes

46,^42^662

$1,328,000

income

$255,323,766

$246,448,482

56,888^533

appropriations:

common

On

preferred

Ratio

shares

SALES

,

79,601,326

charges

19,732,780
98,683,584

6,165,759

44,292,458

fixed

charges

—

On

dealers—

STOCK

$78,950,804

72,506,291

207,664,446

4,460,742

income

Dividend

.Mar. 29

__

sales
of

Net

Federal

dealers—

ROUND-LOT

$135,158,155

I

income

from

.

7,668

637,053

value

CLASS

84,062,068

deductions

4,181

TOTAL

8,742,000

7,042,000

Commission)

income

for

fixed

679,959

purchases by

15,784,000

♦8,999,000

♦6,913,000

$66,066,879

U. S.

Commerce

Miscellaneous deductions

4,593

Other

♦15,912,006

17,995,189

692,706

Round-lot

126.8

6,830,000

;

Mar. 29

sales

105.2

132.9

15,776,000

____!

income

Mar. 29

Short

104.4

Average=100)—

income

sales

1

7,256,000

5,762,000

—

January:

sales

sales—

13,018,000

♦7,325,000
•5,586,000

130.9

Avge.=100)

INCOME ITEMS OF

other

by

*12,911,000

7,269,000

8,946,000

short

shares—Total

562,3

103.3

(1947-49

goods

Customers'

of

10,394.000

12,775,000

goods

Customers'

sales

20,885.000

5,506,000

railway operating

Other

447

sales

Number

„r

of

-

(Interstate

Total

sales

Dollar

1.

DEPT.

S.

manufacturing

—Month

sales)—

other

Round-lot

r-

471.0

goods

Nondurable

28,514

short

shares—Total

rtl

employees In manufac¬
industries—

turing
Durable

Customers'

of

23,143,000
■

Estimated number of

1542

Customers'
Number

2,907

'

goods

manufacturing
indexes (1947-1949

RYS.

29,184

Mar. 29

dealers

2.367

3,805

8,696,000

manufacturing

SELECTED

Mar. 29

by

4,049

19,354,000
Feb.

(production workers)

manufacturing

All

778,034

»

141.7'

COMMISSION:

value

purchases

5,180

23,110,000

1

1

SERIES—Month

Payroll

purchases)—

shares

Dollar
Odd-lot

714

8,273

STOCK

Y.

orders

Number

EXCHANGE

(customers'

Mar.

omitted)

spindle in place Feb.

per

Employment Indexes

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDN.

1,767

„

,

Nondurable

All

INDEX—

ON

Mar.

on

on

(000's

LABOR—REVISED

January:

?

Durable

447,663

SPECIALISTS

hours,

EMPLOYMENT AND PAYROLLS—U.

2.89

5

AND

place

active

spindle hrs.

3.05

Apr.

DEALERS

519

1,834

(DEPT. OF COMMERCE):

spindles in

2.99

Apr. 11

LOT

SPINNING

3.21

83

PRICE

359

8,070

Spinning

All

period;

1,910

pounds)—

(1,000

29

Spinning

2.98

5

end of

142,774
<

3,516

3.19

5

at

104,707

172,258

—

__

2.98

Apr.
REPORTER
100

82,573

220,709

3,313

Feb.

3.19

Apr.

=

247,369
,

1,044

3.22

Apr.

;

(tons)

74,261
94,566

1,483

Grabbots, etc.

3.35

(tons)

I9«€-36 AVERANGE

67,211
,

1,471

bales)

29—

Shipped

Motes,

3.33

of activity.

««L, PAINT AND DRUG

235,057

(1,000-lb.

Feb.

3.32

Percentage

orders

Fiber

Stocks

3.10

3.50

Production

Unfilled

Hull

Apr. 15

INDEX

(tons)

178,852

2.87

2.59

RATIONAL PAPERBOARD ASSOCIATION:
Orders

29

171,417

Apr. 15
Apr. 15

s

Group

COMMODITY

165,276
144,994
V

40,166
156,820

152,939

183,729

Apr. 15

Group

Group

43,004
124,416

121,578

___

Produced

3.05

2.94

3.21

MOODY'S

2.72

3.49

Utilities

2.68

Apr. 15

:

2.63

3.01

Industrials

29

__.

Active

2.93

Public

Feb.

Shipped

17.000c

106.74

107.09

109.60

Apr. 15

Average corporate

Railroad

318,577

■

Apr. 15
Apr. 15

V. 8. Government Bonds

319,884

:

107.27

Group
YIELD

249,374

250,825

:

.

—

111.25

104.14

Group

MOODY'S BOND

56,737

(tons)

Produced

109.24

Group

Utilities

Industrials

92,265;000

55,286

Feb. 29

Produced

-

Public

110,864,000

135,226,000

(tons)

Feb.

9
9

Apr. 15
Apr. 15
Apr. 15

Average corporate

Railroad

204,544,000

185,037,000

117,870,000

(running bales)—

Apr.

U. S. Government Bonds

Aaa

336,814,000

164,076,000

(tons)

Apr.

DAILY AVERAGES:

PRICES

383,410,000

(tons)

Apr.
Apr.

at

at
Lead (St. Louis) at
Zinc (East St. Louis) at
York)

MOODY'S BOND

29

Hulls-

109.24

tin

(New

Feb.

(tons)

104.31

Lead

121,061,000

_

(tons)

112.93

Straits

i

24.200c

9

87,973,000
103,897,000

200,956,000

(pounds)

(pounds)

Produced

-Apr.
Apr.

188,644,000
218,547,000

Meal—

and

Shipped

—

172,495,000

178,436,000

'

(E. & M. J. QUOTATIONS):
Electrolytic copper—

refinery at
refinery at

575,329

"

METAL PRICES

Domestic

318,324

>

1,514,646

172,478,000

29

Feb.

(pounds)

Produced

Apr.
Apr.
Apr.

687,735

;

Oil—

Stocks

>

56,343

321,768

1,140,094

(pounds)

Consumption

'

lb.)

(per

185

00

—Apr. 10

COMPOSITE PRICES:

IRON AGE
*•

INDUSTRIAL)

AND

INC.

161,696
536,248

:

29—1_

(pounds)

Produced
i

FAILURES

of

(tons)

Feb.

(pounds)

Stocks

kwh.)

000

PROD¬

Oil—

Produced

Shipped

Apr.

{

mills

(tons)

Stocks

113,300

—Apr. 12

109

—

(tons)

Crude

465,000

INDEX—FEDERAL RESERVE

AVERAGE

at

Crushed

9,127,000

-

SEED

COMMERCE—Month

Seed—

Stocks

9,915,000

5

.

COTTON

OF

Received

INSTITUTE:

ELECTRIC

-Electric

♦9,865,000

8,145,000

AND

February:
Cotton

,

5

SEED

UCTS—DEPT.

.•

—Apr.

(tons).

SALES

STORE

SYSTEM—1935-39
EDISON

-

Apr.

:

(tons)

DEPARTMENT

-*

Apr.

lignite

coal and

coke

52,549.000

59,593,000

—Apr. 10

—

COAL OUTPUT

COTTON

$311,168,000

87,549,000

construction

Private

Public

$228,502,000

Apr. 10

construction

S.

-

stock-

;

stock

income to fixed

of

charges

—

339,090
d Reverse item.

YORK

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):

FOR
Ttofcal

round-lot

Short
Other
Total

__Mar. 22
..Mar. 22

__

6,807,840

265,040
7.525,650

7,025,280

7,790,690

sales

TRANSACTIONS

FOR

ACCOUNT

BERS, EXCEPT ODD-LOT DEALERS
Transactions

217,440

Mar. 22

sales

ROUND-LOT

Total

UNITED

sales—

sales

of specialists

stocks

in

AND

OF

246,480

278,810

6,699,130

5,945,110

6,945,610

6,223,920

MEM¬

purchases

Mar. 22

702,320

785,620

sales

710,880

617,600

Mar. 22

117,680

143,260

sales

123,170

117,830

Mar. 22

sales

_~Mar.

transactions

Total

initiated

on

the

purchases

Short

Other

sales

__Mar. 22

sales

Total

Total

165,840

254,160

183,980
282,634

212,680

-Mar. 22

44,400

40,470

22,620

68,810

■

sales

—

NEW

SERIES

—

U~~S

294,255

371,759

340,795

277,820

338,655

412.229

363,415

346,630

1,116,928

1,268,254

1,159,354

Mar. 22

203,130

158,830

1,096,885

1,224,639

1,127,835

945,790

Mar. 22

1,267,065

1.427,769

1,286,665

Farm

products
foods

lOn

111.7




Ulncludes

107.6

108.0

110.9

111.5

Apr.
barrels

debt-:

public

gross

—

not

debt

owned

and

the

by

guaranteed

obligations

:

outstanding

gations not subject
Grand

total

Balance
able

UNITED

public

obli¬

debt

debt limitation

to

outstanding

face

of

amount
above

under

of

STATES GROSS
March

obligations,

DEBT

17,527,260

DIRECT

•

AND

omitted):

31

fund

issu¬

authority—

GUARANTEED—(000's

:

balance

debt

of

foreign

113.4

crude

runs.

112.9

§ Preliminary

2.314%

Computed annual rate

WINTER

WHEAT AND

AGRICULTURE—As
Winter

491,000

,

be outstanding

108.3

Apr.

foods"

107.6

Apr.

new. basis.

omitted):
may

obligations

Deduct—other

Net

111.4

Apr.

All commodities other than farm
and

♦Revised.

Total

As

Apr.

Meats

that

public

gross

General

Processed

(000's

time

Treasury

1.142.230

OF

100):

commodities

31

amount

DEBT LIMITATION

196,440

Commodity Group—
All

face
any

977,350

170,180

Mar. 22

DEPT.

March

of

Total

1

Mar. 22

ZZZZ"

'

Outstanding-

9,800

166,300

-Mar. 22

ZZZZ"

PRICES,

LABOR—(1947-49

13,040
170,940

-Mar. 22

~

sales

at

176,100

280,534

1

:

ZZ

As

Total

Guaranteed

249,198

~

__

Exports

147,070

-Mar. 22

sales

WHOLESALE

202,100
19,400

Thfcal round-lot transactions for
account of membersTotal purchases
Other

165,410

234,760

_

sales

Short

619,500

8,100

initiated off the floor

purchases

sales

501,670

739,270

220,280
228,380

sales

Total

616,100

761,380

Mar. 22

—

Other

618,120

700,030

—Mar. 22

—

sales

Short

582,350

Mar. 22

Other transactions
Total

22

floor—

IMPORTS-

Imports
U. S. GOVT. STATUTORY

Short

Total

AND

(000's omitted):

•

Other
Other

EXPORTS

BUREAU OF CENSUS—Month of February

SPECIALISTS

which registered-

in

STATES

figure.

RYE—U.
of

S.

DEPT.

April 1,
."

2.227%

OF

1950:

946,845,000

wheat—Production

Rye—Condition

2.310%

'•

87%

•

$331,000.

<

740,682,000
83%

Volume 175

Number 5108 .;. The Commercial arid Financial
Chronicle

: r

*t» **.

it.

apfc.

ijf

^ indicates

in
Adshelf, Inc., New York
April 9 (letter of notification) 5,000 shares of common
stock (par $1).
Price —$2 per share.
Proceeds —For
working capital.
Office—501 Fifth Ave., New York 17,
N.

Y.

be

ment.

Cardiff Fluorite
Feb. 21

April

1

filed

of

stock

common

Eisele

American

Hard

March

28

filed

$12.50)

to

be

Rubber Co.

96,655

offered

shares
for

(4/25)

of

stock

common

Feb.

Machine &
a

Foundry Co.
maximum of 255,467 shares of

common

(no par) to be offered in exchange for all of the
191,600 shares of International Cigar Machinery Co. stock

if Ashland Oil & Refining Co.
April 16 filed not exceeding 600,000 shares of $100
value cumulative second preferred
stock, series of
convertible prior to June 15, 1962. They will be

additions and

Airlines, Inc.
(letter of notification)

21

City, Okla.

Un¬

Colo.

ver,

Office—1726 Champa

Continued

April 18,

Price—At par ($10 per share). Proceeds—To
pro¬
a
motion picture.
Office—113 West 4th St., Las

rangement being made with insurance company for pri¬
vate placement.

Bridgeport Brass Co., Brideport, Conn. (4/29)
April 8 filed 125,732 shares of cumulative preferred
stock (par $50-convertible
through May 1, 1962) to be

ment.

May 13.

redeem

-

'V,

(Steele

&

Alabama Power Co.irv:

'<;•

stock

medium, the

Chicago Tribune,

;

,

„

Common

Barney

& Co.)

New York State Electric & Gas Corp

Common

(The First Boston Corp.)

May 15, 1952

page

42

Metals & Chemicals

Common

Corp.:
Co.)

&

Jt;'

.v. •May 20, 1952'

'■'

Debentures
-

May 21, 1952
-

Iowa Power &

Bonds

Light Co.—
(Bids

to

be

invited)

May 26, 1952
Common

Co.)

.

■

-

•

;

'//•.

'

Preferred

Dallas Power & Light Co
•

.

noon

EDT)

10,

(Bids

1

—

once
uiiw

1952

"./•

j if

markets—professional

(Bids noon EST on bonds;

11

(Bids

(Morgan

EST)

Stanley

&

invited)

Bendl

Gulf Power Co
Common

a.m.

1952

and

Co.)

to

be

<

;V July 1, 1952

Pennsylvania Salt Manufacturing Co——Common
"

10:30 a.m. EST on stocks)

June 24,

Common

Blair, Rollins & Co., Inc.)

Gulf States Utilities Co..

■

Bonds A Stock

Kansas Gas & Electric Co

1

'

Illinois Bell Telephone Co,
\

(Offering

to

Common

stockholders)

.

April 23, 1952

Lone Star Cement Corp.___
.(Hayden, Stone & Co.

and

National Research Corp.,
(Paine,

Webber,

Common

Adamex Securities

Jackson

July 8, 1952

Corp.)

Cambridge, Mass

Georgia Power Co..

Com.

(Bids

'•

& Curtis)

Bondi
to

be

invited)

Property Management,
Debs.

A

Common

(Dominick/& Dominick)

Rochester Telephone Corp..:—

that gives to each day's

June

Bonds

Boston

Preferred

Corp.)

Tucson Gas, Electric Light & Power Co...Common

largest circulation given them
in America. For the complete

and the midwest.

in-

'

services most

in this rich

agency

or

nearest

q-fe midwest**

news-

.

tub

world's

'v

Inc.

and

First

Boston

&

Co.

Wis.__^v
and

Corp.)

.Common

Clark, Dodge & Co.)

Cutter Laboratories, Berkeley, Calif—
(Blyth & Co.,

General
V

Gas

Common

(Kidder,

Peabody

&

Jersey Natural Gas Co

;

J

"

'

(Allen &

Co.)

...

.

,*.t* ?

.

New York

,

Preferred A Com.

,(Ol1etl£g"fo Stockholders)

Common

.

Boston

Philadelphia

Co.)

Southern Union Gas Co., Dallas, Tex
*<L.:

Common

Inc.)

Corp
"

■'

New

greatest newspaper

trading business and financial newspaper




(Morgan Stanley

:

CHICAGO TRIBUNE

Co.,

Case (J. I.) Co., Racine,

advertising sales

widely known.

&

April 24, 1952

Chicago

representative.

market, schedule 1

advertising in the

(Blyth

story, consult your advertising
Tribune

To make your issues and

*

EDT)

May 14, 1952

(Smith,

..Common

(Hornblower & Weeks, Harriman Ripley & Co., Inc.

f

^

market tables and reports the

buyers and the general

,

noon

Light Co

"

■

Drilling & Exploration Co., Inc.......
i

3%% 'sferial

can

you

vesting public—in Chicago

-your

(Bids

:
.Common
(Kidder, Peabody <fe Co. and Kirkpatrick-Pettis & Co.)

held; rights

both invest-

reach and sell
ment

paper

Bonds,

County Electric Co

Iowa Power &

(Bids 11 a.m. EST)

(First
one

,

...

Inc.".™'™-

Reach lit#hi markets <ii
cduii both iiidirveib at

1

EDT)

noon

May 13, 1952
Worcester

Carpenter Paper Co

Oil .& Gas

THRU

(Bids

.

of

preferred share for, each

outstanding

Common

England Electric System

St., Den¬

on

Great Western Petroleum Co

-

stockholders

Price—To be supplied by amend¬

Proceeds—To

May 7, 1952
New

April 21, 1952
1

(Bids

•

on

Bonds A Debft.
EST)

a.m.

April 22, 1952

Bingham-Herbrand Corp.
March 19 filed $2,000,000 cbnvertible debentures due
April 1, 1964.
Price—To be supplied by amendment.
Proceeds—To repay short-term loans, and for other cor¬
porate programs.
Underwriters—Straus, Blosser & Mc¬
Dowell, Chicago, 111. Statement to be withdrawn. Ar-!

expire

common

(James M. Toolan & Co.)

^

common

11:30

(Bids to be Invited)

(Morgan Stanley & Co.)

•

one

(Bids

-.Common

/ Sioux Oil Co., Denver, Colo
,

April 29 at rate of

^Debentures

EDT)

11 a.m.

Texas Electric Service Co

1952

Gustin-Baeon Manufacturing Co

Underwriter—Ames, Emerich & Co., Inc.,

and one-half shares of

(Bids

»

National Fuel Gas Co.™

if Better Programs, Inc., Las Vegas, Nev.
7 (letter of notification) 2,000 shares of capital

seven

Bonds

Jersey Bell Telephone Co

HEW ISSUE CALENDAR

April

to

New

(Beer

Chicago, 111.

record

■d

(The First Boston Corp. and Halsey, Stuart & Co., Inc.)

Underwriter—Tellier & Co., New York.

Co., Morton GroVe^ Ilk *

common

■

May 6, 1952
Chicago & Western Indiana RR

Underwriter—Israel & Co., New York.

Proceeds—To drill well.

1,000 shares of common
(par $5). Price—At market (approximately $27.25
share). Proceeds — To R. Edwin Moore, the selling

by

A'Pfd.

i

Proceeds—To

April 7 (letter of notification) 1,999,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share..

Price

March 28 (letter of notification)

subscription

(Blair, Rollins & Co., Inc.)

• Cheyenne Oil Ventures, Inc., Denver, Colo.

stock

for

May 1, 1952
Southern Union Gas Co., Dallas, Tex.__Debs.

—

par

1952,

Blatner, the selling stockholder. Underwriter
—None, but Bache & Co.; New York, may act as broker.

offered

Corawdl

(Offering to stockholders—not underwritten)

Camp
Underwriter—None.

.

Vegas, Nev.; Underwriter—None.

Commdft
and Dominick & Dominick)

Peabody & Co.

First National Bank of Portland

19

sabeth M.

duce

May 12.

2,000 shares of

(B. T.), Inc., New York
March 28 (letter of notification)
9,670 shares of common
stock (par $1). Prlee—$8
per share.
Proceeds—To Eli¬

stock.

(Kidder,

Oklahoma Oil Corp.
(letter of notification) 50,000 shares of com¬
mon stock
(par 10 cents). Price—At market (approxi¬
mately $2 per share).
Proceeds—To A. M. Metz, the
selling stockholder.
Office
Braniff Bldg., Oklahoma

capital

improvements and working capital.
derwriter—A. G. Becker & Co. Inc., Chicago, 111.

per

April 30, 1952

Central

initially

offered for subscription by common stockholders.
—To be supplied by amendment.
Proceeds—For

stockholder.

Bondfc

EDT)

noon

Canadian Fund, Inc

indebtedness

March

New York.

& Gossett

'

Common

Underwriter—

Airlines, Inc., Fort Worth, Tex.

Bowie Blvd., Fort Worth, Tex.

(not already owned by American) on a lV3-for-l basis.
Offer authorized by directors on April 14 to
expire in 30
days unless extended. Dealer-Manager—Reynolds & Co.,

Bell

(Bids

stock (par $1) and 500 shares of 5% cumulative
preferred
stock (par $100). Price—At
par.
Proceeds—For equip¬
ment and operating requirements. Office — 6109

stock

Babbitt

Bendte

Central

writer—Blair, Rollins & Co. Inc., New York.
March 27 filed

on

Inc.)

(W. E. Hutton & Co. and Craigmyle, Plnney & Co.)

(letter of notification) 27,750 shares of com¬
(par $1). Price—$5 per share. Proceeds—To
and for new equipment.
Office—
Meacham Field, Fort Worth, Texas. Underwriter—None.

12. Price — To be supplied by amendment.
Proceeds—For plant additions and construction. Under¬

FfdL
Corp4

Securities

Union Electric Co. of Missouri

24

retire

Webster

Southwest Natural Gas Co

stock

mon

privileges); rights to expire

about May

&

(Halsey, Stuart & Co. Inc.)

Co., Inc., Rochester, N. Y.

held; rights to expire

March

Stone

Peabody Coal Co

King, Libaire, Stout & Co., New York.

Central

April 25 at rate of one new share for each four
shares of preferred stock or two shares of common stock
held (with oversubscription

American

common stock (par $1).
share. Proceeds—For development ex¬
general corporate purposes. Underwriter-

bank loans. Underwriters—Morgan Stanley & Co.
Clark, Dodge & Co., New York.

and

arid

Common

repay

(par.

subscription by stockholders

about

•

675,000 shares of

• Case
(J. I.) Co., Racine, Wis. (4/24)
April 4 filed 377,058 shares of common stock (par $12.50)
to be offered for
subscription by common stockholders
of record April 24 at rate of one new share for each five

shares

Weeks

(Blyth & Co.,

(4/22)
April 1 filed 60,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriters—Kidder, Peabody & Co.,
New York, and Kirkpatrick-Pettis
Co., Omaha, Neb.

Co., Cleve¬

i

Husky Oil Co

Carpenter Paper Co., Omaha, Neb.

Underwriter

&

&

&

Mines, Ltd., Toronto, Canada

Jerome L. Long, the selling stockholder.

(no par)

April 29, 1952

,

.

Bridgeport Brass Co., Bridgeport, Conn
(Hornblower

(L. E.) & Co., Wbarton, N. J.
March 20 (letter of notification)
5,000 shares of common
stock (par $1).
Price—At the market.
Proceeds—To

April 15 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Business — Manufacture and sale of
Underwriter—McDonald

,

company.-

Carpenter

if American Greetings Corp., Cleveland, Ohio

greeting cards.
land, O.

investment

per

Frank P. Hunt &

reserved for issuance pursuant to
Employees Stock Op¬
tion Plan.
Price—At a fixed price based on market.

Proceeds—For general corporate purposes.
—None.
•
•

and

penses

(jointly); Harriman

America

489,073 shares of

filed

Price—$1.25

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

(par $1).
share. Proceeds—For invest¬

per

Closed-end

—

Dominick, New York.

Ripley & Co., Inc. Bids—To be received up to 11 a.m.
(EST) on April 22 at office of Southern Services, Inc., 20
Aluminum

Business

Underwriters—Kidder, Peabody & Co. and Dominick &

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Kuhn, Loeb & Co.; Lehman Brothers; The First Boston
Corp.; Blyth & Co., Inc.; Union Securities Corp., Equit¬
able Securities Corp. and Drexel & Co.
(jointly); Shields

Common,

(Blair, Rollins & Co. Inc.)

Price—Probably $12.75

ders:

& Co. and Salomon Bros. & Hutzler

April 25, 1952

Canadian Fund, Inc. (Md.)
(4/30)
March 13 filed 800,000 shares of capital stock

determined

REVISED

American Hard Rubber Co

•

Power Co. (4/22)
March 21 filed $12,000,000 first
mortgage bonds due 1982.
Proceeds—For construction program. Underwriters—To

ISSUE

PREVIOUS

ITEMS

•

New York.

Underwriter—None.

additions

SINCE

debentures and repay 2%% notes. Underwriters—Hornblower & Weeks and Stone & Webster Securities
Corp.,

Alabama

*1

(1633)

»

Pittsburgh

San Francisco

Private/Vires to all offices

Chicago

Cleveland
*}(■

k.

42

(1634)

The Commercial and Financial
Chronicle

Continued

from

page

it DeKalb-Ogle Telephone Co., Sycamore, III.
April 11 (letter of notification) 20,556 shares of common

41

it Citizens Credit Corp., Washington, D. C.
April 10 (letter of notification) $125,000 of 6% subordi¬
nated debentures due 1969 (with warrants attached to
purchase 3,750 shares of class A common stock at $15
per

share and 750 shares of class B

per

share).

ceeds—To

at 25 cents

common

Price—At 99% and accrued interest.

acquire loan offices and subsidiaries.

Pro¬
Office

—1028 Connecticut

Avenue, Washington 6, D. C. Under¬
writer—Emory S. Warren & Co., Washington, D. C.

it Commerce Manufacturing Co., Inc.,
Commerce, Ga.
April 7 (letter of notification) 3,600 shares of common
stock (par $50) to be offered to stockholders on a sharefor-share basis.

Price—$75 per share. Proceeds—For ex¬
pansion of business. Underwriter—None.
Commercial

Co., Inc., Mt. Rainier, Md.
(letter of notification) 8,000 shares of common

March 21
stock

$25)

Finance

(par $1) and 8,000 shares of preferred stock (par
to be offered in units of four shares of preferred

and four shares of

stock.
Price—$120 per unit.
capital.
Office — 3201 Rhode
Ave., Mt. Rainier, Md.
Underwriter—None.

Proceeds

Island

—

For

common

working

Consolidated

Industries, Inc.
(letter of notification) 200,000 shares of com¬
stock.
Price—$1 per share.
Proceeds—For con¬
struction of sulphuric acid, fertilizer and wood
sugar
plants. Office—174 North Main Street, Salt Lake City,
March 17

mon

Utah.
•

Underwriter—None.

stock.

Detroit

Feb.

18

filed

Underwriters

40,000

shares

of

Investment
class

A

Corp.
stock.

common

Price—At par ($10 per share, with an underwriter fee
of $1.50). Proceeds—For investment. Underwriters—A.
C. Decker, Jr., President and Treasurer of
corporation:
F. D. Keith,

Vice-President; and S. O. Ryan. Withdrawal

—Statement withdrawn April 3.

Consolidated Underwriters
March 26

Investment

(letter of notification)

A common

stock.

30,000 shares of class
($10 per share). Pro¬

Price—At par

ceeds—For working capital.

Corp.

Office—507

Spring Street,

Shreveport, La. Underwriter—None.
it Constant Minerals Separation Process, Inc.,
Reno, Nev.
April 8 (letter of notification) 1,100,000 shares of class A
capital stock (par 10 cents.)

Price—20 cents

share.

per

Proceeds—For

mining operation, equipment and work¬
Office
10 State St., Reno, Nev.
Under¬

ing capital.

—

writer—None.

Continental Royalty Co.,
Dallas, Tex.
March 18 (letter of
notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
To purchase royalties and
mineral deeds, oil and gas.
Office—740 Wilson
Building, Dallas Texas. Underwriter
Southwestern Securities Co. and Hudson
Stayart & Co.,
Inc., of Dallas, Texas.

—

Steel

Continental

Sulphur &

Phosphate Co.

March 25

(letter of notification) 145,000 shares of com¬
stock (par 10
cents). Price—$1.37y2 per share. Pro¬
ceeds — To pay indebtedness and
for new construction.
Office—2010 Tower Petroleum

Bldg., Dallas, Tex. Un¬
derwriter— D. F. Bernheimer &
Co., Inc., New York.

• Cooperative Trading, Inc.,
Waukegan, III.
(letter of notification) 2,500 shares of common
Price—At par ($10 per
share). Proceeds—To pay

April 7

Cornell-Dubilier Electric
Corp.
March 26 filed
$4,000,000 of 20-year sinking fund deben¬
tures due March
1, 1972. Price
To be supplied
by
—

amendment.

Proceeds

working capital.
New York.

—

To

retire

bank

Underwriter—Kidder,

loans

and

for

Peabody & Co.,

County Gas Co. (4/24-25)
See New
Jersey Natural Gas Co. below.

the

(approximately $13

cumu¬

market

Proceeds—To Harold E.
Jalass, the selling stockholder. Underwriter
Wayne
Hummer & Co.,
Chicago, 111.
'
,

Cutter

Laboratories, Berkeley,

Apiil 4 filed
•

Price —To

be

bank

repay

82,000 shares of
supplied
loans and

Underwriter—Blyth
York.
•

Daitch

Crystal

Calif.

common

by amendment.
for

& Co.,

other

Proceeds —To

Steel

22,000

i ''shares will be
shares by present

plied

by

supermarkets.

(par $1), of

offered by

company and
stockholders. Price—To be
sup¬
Proceeds
To open additional
—

Underwriter-Hirsch

Co!

&

Offering—Now expected
early in May.
Dayton Power & Light

New

Yo?k!

Co., Dayton, O.

larch 18 filed
50,000 shares of common stock
(par $7)
be reserved
under the
company's employees' stock
plan.
to

Underwriter—None.

• Dean
Jock

2/

Co.,

Chicago,

III.

/° (^ter of notification)
(par $10).

Price—$16.50

Corp.

rehabilitation

filed

10

and

development

from

effective

common

stock

date

stock

program.

working capital.

F.

Price—At

a

•

AfiR?eTan,' tj2istee

writer—Boettcher

o

&

per

share.

Proceeds—

under the will of J- R. Dean.
Drive' ChicaS° n> Rl- Under¬

Co., Denver, Colo.

Deerpark Packing Co., Port Jervis

monC^21ir(?etteriofcents).
no.tification)
stock (par 10

mon

repay RFC l0an °f ?41'050




N

Y

235,000 shares "of

Price—$1.25

Mpft^r

common

per share

a"d for

com¬

Pro-

worffng

of

this

additional

•

•

to

(with
expire April 24.

Insurance Vending Machine Corp.,
Denver, Colo.
26 (letter of
notification) $150,000 of five-year
debentures (in denominations of
$1,000 each) and 52,March

500 shares of common
one

stock (par $1), each purchaser of
$1,000 debenture to receive a bonus of 350 shares of

stock.

(4/24)

Ernest

Proceeds
and

To

purchase

Office—'720

patents.

Building, Denver 2, Colo.

Under¬

International Technical Aero
Services, Inc.
(letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1' per share, Proceeds—For
Feb. 15

working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt &

Interstate

Power

Co.. Washington, D. C.
Co.

March 3 filed 345,833 shares of common stock
(par $3.50)

•

Great Western Petroleum Co.
Feb. 25 (letter, of

(4/21)
notification) 299,900 shares of com¬
mon stock. Price—At
par ($1 per share). Proceeds—To
drill wells. Office—328
Empire Bldg., Denver 2, Colo.
Underwriter—Steele & Co., New York.

being offered for subscription by common stockholders
record April 4 on basis of one share for each six
then held (with an oversubscription privilege).
Rights to expire on April 18. Price — $8.65 per share.
of

shares

Proceeds

it Greater Weeklies

—

For

construction

Smith, Barney & Co., who
.

April 2
share.

and

five common shares.
Price—$25
Proceeds—For working capital.
Office—912
Broadway, New York 10, N. Y. Underwriter—None.

on

their bid for

Statement

a

program.

were

Underwriter-

awarded

the

issue

on

compensation of 14 V4 cents per

effective

March

24.

Jersey Yukon Mines Ltd., Toronto, Canada

unit.

April 22.

—

Cranmer

writer—None.

Kidder, Peabody

on

Brothers,
Corp., all

Underwriter—Weber-Millican Co., New York.

Proceeds—For drilling expenses, repayment
working capital. Offering—Date not set

(EDT)

Boston

(Nev.), Newark, N. J.
(letter of notification) 599,700 shares of class A
stock (par 25 cents).
Price—50 cents per share.
Proceeds—For drilling and equipping well and for work¬
ing capital.
Office—11 Commerce St., Newark, N. ,J.

of advances and

a.m.

First

common

Golconda Mines Ltd.,
Montreal, Canada
April 9 filed 750,000 shares of common stock. Price—
($1 per share). Underwriter—George F. Breen

11

The

Inland Oil Co.

Co., New York.

to

and

Feb. 26

March 28 filed 120,000 shares of common
stock (par $5).
Price—To be supplied by amendment.
Proceeds—To fi¬
nance
tank sales and for
working capital. Business—
Distributor of LP-gas. Underwriter

up

oversubscription privilege); rights
Price—$34.75 per share. Proceeds—

an

of New York.

William S. Prescott &
Co., Boston, Mass.

St., New York,

Blyth & Co., Inc.,

construction. " Underwriters—Lehman

new

Goldman, Sachs & Co.

shares by certain key employees at the
price (latter part to be underwritten at $2.78
per
share). Proceeds—For working capital. Underwriter—

Fenner & Beane and Lehman
Brothers (jointly); Blyth
& Co., Inc. Bids—To be
received at Room 735, If Broad

—

Indianapolis Power & Light Co.

for

same

Proceeds—For new construction.
Underwriter—To be
determined by competitive
bidding. Probable bidders:Stone & Webster Securities
Corp.; Merrill Lynch, Pierce,

Gas

Inc., Neodesha, Kan.
'
(letter of notification) 120,000 shares of common
(par 25 cents) to be first offered to stockholders.

shares held

Gulf States Utilities
Co., Beaumont, Tex. (4-22)
March 19 filed
300,000 shares of common*stock (no par)/

Natural

(no par),
being offered for subscription by common stockholders
of record April 10 at the rate of one share
for each seven

Alloys Co., Boston, Mass.
(letter of notification) 25,000 shares of common
(no par), of which 15,025 shares are to be offered
for subscription
by officers of the company at $3 per

preferred

100,000
Co., to be
of properties and

Northern

March 19 filed 196,580 shares of common stock

General

one

to

per share.
Proceeds—For working capital.
Underwriter—Barrett Herrick & Co., Inc., New York. *

it Founders Mutual Fund, Denver, Colo.
April 15 filed 3,500 systematic payment plan
certificates,
200 fully-paid accumulative
plan certificates, and 200
fully-paid income plan certificates. Underwriter—None.

per

stock, plus $1,050,000 from sale of

shares

Price—$2.50

(par

Associates, Inc., N. Y.
April 11 (letter of notification) 16,305 shares of common
stock (par one cent) and
3,261 shares of 5% preferred
stock (par $20) to be offered to
members only in units

(4/29)

Independent Plow,

—

New York.

re¬

Underwriter—

for exploration and acquisition
increase investment in
Husky Oil & Refining Ltd.,; a

stock

cents). Price — 50 cents per share. Proceeds
For
equipment and drilling purposes. Underwriter—None.

—

share). Proceeds—To

per

Feb. 15

Co., Monroe, Wash.

Corp., Baton Rouge, La.

($5

Canadian subsidiary. Underwriter
San Francisco and New York.

war?

stock

par

Office—Emporia, Va.

used
to

10

General Gas

loans.

Husky Oil Co., Cody, Wyo.

sale

Unsubscribed shares will be offered by
the company at the same
price and carrying the same
warrants.
Proceeds—To finance drilling program. Un¬
derwriter—None. Statement effective March 10.

common

bank

March 28 filed 300,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—From

003,792 shares.

of

40,320 shares of capital

None.

2,-

shares

Telegraph Co. of Virginia

(letter of notification)

April 18. Price—At

Underwriter—None.

subscribed,

600,000

80,000 shares of 51/2% convertible pre¬
(par $25). Price—To be supplied by amend¬
working capital.
Underwriter—

Proceeds—For

Home Telephone &

duce

Mines, Ltd., Toronto, Canada

Petroleum

filed

being offered for subscription by stockholders of
record April 1 on a l-for-5
basis; rights to expire on

rant to purchase one additional share at
$1.25 (Canadian
funds) per share until June 1, 1953, or an additional

filed

.

stock

stockholders at 75 cents per share
(Canadian funds) on
basis of one new share for each two shares
held. Sub¬
scribers will receive, for each share

21

25

March 21

Jan. 25 filed 4,007,584 shares of common stock
(par $1)
and 2,003,792 common stock
purchase warrants of which
2,003,792
shares are to be offered to present common

Flathead

'

Robert W. Baird & Co., Inc.,
Milwaukee, Wis.
1

April 10 (letter of notification) 35,000 shares of class A
common stock (par
$1) to be offered to employees. Price
—$8 per share.
Proceeds—For working capital.
Office

March

T.

ment.

(approximately $15
per share). Proceeds—To J. M. Curley, the
selling stock¬
holder. Underwriter—Hornblower &
Weeks, New York.
it Federal Electric Products Co.

Iron

Ida.

Foods, Inc., Kansas City, Mo.
(letter of notification) 2,500 shares of common
par).
Price—$20 per share.
Proceeds—To
Hoeck, the selling stockholder.
Underwriter—

ferred stock

market

Street, Newark 5, N. J.

Mining Co., Wallace,
(letter of notification)

(no

March

(4/22)

it Eastern Stainless Steel Corp., Baltimore, Md.
(letter of notification) 4,000 shares of common

Fenimore

($20

Hoberg Paper Mills, Inc., Green Bay, Wis.

Statement effective April 2.

April 7

—50 Paris

par

—

Blair, Rollins & Co. Inc., New York.

$5).

Price—At

($1 per share). Proceeds—To clear
plant site and for working capital. Office
1402 East
27th St., Tacoma 4, Wash. Underwriter—None.

Co.,

(par

stockholders.

stock. Price—At par

quire properties of Texla Gas Corp. and purchase other
properties.
Business — Crude oil production.
Underwriters—Hornblower & Weeks, Harriman
Ripley &

stock

Underwriter

it Hi-Carbon &Chemical Co.,Tacoma, Wash.
April 3 (letter of notification) 300,000 shares of common

being of¬
period of

March 28 filed 400,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To ac¬

Inc. and

rights to
Proceeds—To

Prugh-Combest & Land, Inc., Kansas City, Mo,,

of

Drilling & Exploration Co., Inc.

17

Hex

registration statement.
Price—At par ($1 per share). Underwriter—Graham &
Co., Pittsburgh, Pa. Proceeds—For development costs
and

waived

share.

March 14

Corp., Pittsburgh, Pa.

475,000 shares of

fered first to holders of preferential
rights for a

days

have

per

3,000 shares of capital
(par 25 cents). Price—At market (approximately
$18 per share). Proceeds—To Mrs. M. K; Pollard, the
selling stockholder. Underwriter—Thomson & McKinnon, New York.

Underwriter—Gardner & Co., White Plains, N. Y.
Diesel Power

on

stock

it Devil Peak Uranium, Ltd. (Nev.)
April 7 (letter of notification) 600,000 shares of common
stock (par one cent).
Price—50 cents per share.
Pro¬

Jan.

stockholders

Price—$21.50

be offered to

Hecla
Jan.

Underwriters—Van Al¬

styne, Noel & Co., New York, and Crowell, Weedon &
Co., Los Angeles, Calif.
Offering—Postponed tempo¬
rarily.

•

expire

—None.

ceeds—For expansion program.

of

4,000 shares of

to

share). Proceeds—For working capital. Underwriter

per

Feb. 5 filed 600,000 shares of $1.50 convertible preferred
stock (par $25). Price—To be filed
by amendment. Pro¬

ceeds— For

Certain

shares.

stock to

At par

Inc.

rights

Feb. 15

.

Detroit

&
and New

(with

Hammond Bag & Paper
Co., Wellsburg, W. Va.
(letter of notification) 10,000 shares of common

York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif. Offering—Postponed
temporarily.
*

purposes.

Inc., San Francisco

Dairies,

amendment.

(par $1)

corporate

Jan. 31 filed
147,000 shares of common stock
99nnn

(4/24)

stock

basis

repay bank loans and for new equipment.
—Morgan Stanley & Co., New York.

68,640

writers—Halsey, Stuart & Co. Inc. of Chicago and New

—

•

one-for-five

a

Proceeds—To retire $13,950,000 of presently outstanding
first mortgage bonds and for expansion program. Under¬

share and 9,975

share).

per

on

April 25) and the balance will be sold by certain stock¬

stock

Cribben & Sexton
Co., Chicago, III.
March 3 (letter of
notification) 900 shares of 4%%
lative preferred stock
(par $25). Price—At

April

16

Corp.

March 5

•

(4/18)

holders.

stock.

indebtedness and for working
capital. Office—711 McAlister St., Waukegan. 111.
Underwriter—None.

Manufacturing Co.

Feb. 5 filed $25,000,000 of 47/8% first mortgage bonds due
March 1, 1967.
Price — To be supplied by amendment.

a

mon

Gustin-Bacon

March 28 filed 261,900 shares of common stock
(par $5),
of which 121,300 shares are to be offered
by the company
for subscription
by common stockholders of record

$10 per share.
Proceeds — For general
purposes.
Office—112 West Elm Street, Sycamore, 111.
Underwriter—None.

30

Consolidated

Price

•

Thursday, April 17*1952

...

March 20 filed 200,000 shares of

"

common stock (par $1).
Price—$1 per share (Canadian funds).
Proceeds—For
capital payments on property account and option agree¬
ments, purchase of machinery and operating1 expenses.

Underwriter—None.
Johnston Adding Machine Co., Carson
City, Nev.
(letter of notification) 150,000 shares of capital

March 5

stock. Price—At par ($1 per share). Proceeds—To
pur¬
chase tools and materials and office
equipment. Under¬
writer—None.

-

Number 5103

Volume 175

.

The Commercial and Financial Chronicle

.

.

(1635)
Junction City

Telephone Co.

(Kansas)

,

;

(letter of notification) $294,000 of first mortgage

Feb. 29

4%% bonds, series A, due

Feb. 1, 1977 (in denominations

of $1,000 each). Proceeds—To retire bank loans. Under¬
writer—Wachob-Bender Corp., Omaha, Neb.
;

Kansas-Colorado Utilities, Inc., Lamar, Colo.

March 14

stock.

(letter of notification) 5,866 shares of

Price—$12.75 per share.

Brooks

common

Proceeds—To Sullivan-

selling stockholder.
Office—112
West Elm St.,
Lamar, Colo.
Underwriter — SullivanBrooks Co., Inc., Wichita, Kan.
Co.,

the

Inc.,

^

Proceeds—To acquire 305,000

share.

per

tional

Chlorophyll & Chemical Co. at $2

ness—Manufacture

sale

and

of

shares of Na¬

share.

per

alfalfa

Busi¬

meal.

Office—

National Chlorophyll & Chemical Co.
April 7 filed 349,000 shares of common stock

(par $1)

Lamar, Colo.

Underwriter—None.

to be offered for subscription by preferred and common

stockholders of National Alfalfa
Co.

in ratio of

share of

one

Dehydrating & Milling
Chlorophyll com¬

National

each two

for

if Keep (O. D.) Associates, Inc., Los Angeles, Calif.
April 7 (letter of notification) 13,382 shares of preferred

shares of National Alfalfa preferred
presently held in conjunction with offer by
National Alfalfa company of its own stock.
National
Chlorophyll shares are to be offered for subscription

stock

only

($5

shares of

6.791

and

share).

per

common

stock.

Price—At

Proceeds—For working capital.

par

Under¬

ic Kirk Mines, Inc., Denver, Colo.
April 7 (letter of notification) 72 shares of non-voting
preferred stock (par $500) to be offered to Kirk Uranium
pay

balance due of $36,000

on lease and option
Carlton, trustee under will of J. W. Smith,
York, N. Y.

from Marjorie

deceased. Office—60 East 42nd St., New

Kirk

Uranium

March

24

common

For

Corp., Denver, Colo.
of notification) 1,000,000 shares of
Price
30 cents per share.
Proceeds —

(letter

stock.

—

exploration

Office

work.

Building, Denver, Colo.
White Plains, N. Y.

405

—

Interstate

Underwriter—Gardner

Trust

&

Co.,

Lapaco Chemicals, Inc., Lansing, Mich.
18
(letter of notification) 200,787 convertible

March
notes

(each note convertible into $1

Price—90

each.

cents

Proceeds

class B stock).

par

For

—

working capital

and investment.

Office—1800 Glenrose Ave., Lansing 2,
Underwriter—None.

Mich.
>

v

Lindemann

Nov. 28 filed

(A. J.)

part of

as

112,500 shares of

be

(N. J.)
March 5 (letter of notification) 1,000 shares of common
stock (par $1).
Price—$100 per share. Proceeds—For
working capital.
Office—15 Exchange Place, Jersey
City 2, N. J. Underwriter—None.

J Lone Star Cement Corp.
April 3 filed 154,209 shares of

(4/23)
stock

common

Price—To be supplied by amendment.

price

(par $10).

Proceeds—To

re¬

bank loans and for expansion program. Underwrit¬

unit

package consisting of one Na¬
$9 per share and five shares of
Chlorophyll stock at $2 per share, or a total
unit of $19. Proceeds—To purchase from Na¬

tional Alfalfa

a

share

•

Peabody Coal Co. (4/29)
April 4 filed $15,000,000 of first
mortgage sinking fund
bonds, series B, due April 15, 1972. Price—To be
sup¬
plied by amendment.
Proceeds—To retire $10,720,000
series A 4 % bonds due
Oct. 1, 1962 and for capital addi¬
tions, etc.
Underwriter
Halsey, Stuart & Co. Inc.,
—

Chicago and New York.

April 3 filed 155,349 shares of
to

be offered

of

record

be

for

filed

voting

common

trust

stock

certificates

(par $1)

4% convertible subordinated notes.

year

for

3,000,000

and $6,000,000 of
There

are

10now

outstanding 1,134,229 shares of common stock eligible to
be exchanged for the voting trust certificates. The notes
(convertible into common stock at rate of $6 per share)
will be placed privately. Financial
Adviser—Smith, Bar¬
ney & Co., New York.
<

Mercantile

Acceptance Corp. of California
notification) 2,030 shares of common
(par $5) and $40,600 of. 10-year 5% junior sub¬

March 20 (letter of
stock

ordinated

debentures

to

be

offered

to

hplders of record March 10 at rate of
and

mon

stock-

share of

com¬

$20 face amount of debentures.

Price—$23.50
Proceeds—For working capital.
Office—333

unit.

per

common

one

Montgomery Street, San Francisco, Calif.
Underwriter
—Guardian Securities Corp., San Francisco, Calif.
•

Merritt-Chapman & Scott Corp.
March 13 filed 124,147 shares of common stock
(par
$12.50), being offered for subscription by common stock¬
holders of record April 10 on the basis of one share for
each four shares held.

Of any unsubscribed

shares,

em¬

ployees, including officers, may purchase a maximum
of 10,000 shares; rights to expire about April 28.
Price—
$21 per share. Proceeds—To reduce bank loans and for
working capital and other corporate purposes. Office—
17 Battery Place, New York 4, N. Y. Business—Industrial
building, marine and heavy construction. Underwriter—
None.

Statement effective

.Metal

Hydrides,

March 21 filed

Corp. (4/23)
100,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds — For
general corporate purposes.
Business — Scientific re¬
—

search.

Inc.,

common

large

research

facilities

and

for

(par $5).
en¬

construction.

Underwriter—D. A. Lomasney & Co., New York.

Michigan Steel Casting Co., Detroit, Mich.
(letter, of notification) 40,250 shares of com¬
mon
stock (par $1) to be offered for
subscription by
March 27

stockholders of record March 31.

Proceeds—For working capital.

Price—$5.25

share.
Underwriter—None.
per

..Mountain States Telephone & Telegraph Co.
March

7

filed

318,624 shares of capital stock, being of¬
fered for subscription by stockholders of record March
28

on

l-for-4

a

basis; rights expire April 29. Price—At
share). Proceeds—To repay advances from
American Telephone &
Telegraph Co., parent, which
owns a
majority (over 84.81%) of present outstanding
stock. Underwriter—None. Statement effective
March 26.
($100

par

'

per

Multnomah

Feb.

27

filed

of which

200

shares of
are

common

stock

(par $2,500),

to be offered to stockholders at

and nine shares are to be offered to three indi¬
viduals in units of three shares each at
$12,500 per unit.
par

Proceeds—To

acquire timber, timberlands and peeler
plant and for working capital. Underwriter—None.
National

Alfalfa

Dehydrating & Milling Co.

April 7 filed 69,800 shares of
be

offered

for

subscription

common

by

stock

preferred

(p^r $1) to

and

common

stockholders in ratio of one new common
sharejfor each
10 shares of preferred or
common stock held.




New

Office—5 South Court

St., Montgomery, Ala.

if Permian Basin Pipeline Co., Chicago, III.
April 1 company applied to FPC for authority to con¬
struct a 384-mile pipeline system from west Texas and
eastern New Mexico to the Panhandle

• Natural

for convertible notes and

Resources of Canada Fund, Inc.
April 11 filed 1,966,383 shares of capital stock (par one
cent). Price—At market. Proceeds
For investment.
—

Distributors—Frank L. Valenta & Co., New York.

if Nevada Tungsten Corp., Mina, Nev.
(letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent). Price—At market (approxi¬

April 7

mately 10 cents

per

working capital.

share). Proceeds — For machinery
Underwriter—None.

•

New England Electric System (5/7)
April 9 filed 920,573 shares of common stock
to be offered for

subscription by

record about May 8

at rate of

common

one

plied by amendment.

Proceeds—For

cost

Price—To be

sup¬

construction pro¬

Underwriters—May be determined by competitive
bidding. Probable bidders: Blyth & Co., Inc. and Lehman
Brothers
(jointly); Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Harriman Ripley & Co., Inc. and Goldman,
Sachs & Co. (jointly).
Bids—To be received up to noon
(EDT) on May 7 at 441 Stuart St., Boston 16, Mass.

Underwriters

To

(5/6)

•

New

be determined

March

ferred

Jersey Natural Gas Co.
31

filed

106,000

shares

of

cumulative

pre¬

stock

(par $20), 212,000 shares of common stock
(par $10) and 106,000 common stock purchase warrants
(each warrant entitling holder to purchase one share of
common stock)
to be offered in units of one share of
preferred stock, two shares of common stock and one
warrant.

Price

—

Probably $50 per unit. Proceeds
and private placement of
$12,500,-

—From sale of Stock
000

first

and

bonds

mortgage

serial

notes

and

for

Jersey Natural Gas Co.

will

be

used

to

working capital.

retire

bonds

Name—New

Underwriter—Allen & Co., New

York.

New

Mexico

Jockey Club, Albuquerque,

N. M.

March 17 filed 1,255 shares of common stock (par
$1,000).
Price—At par. Proceeds—To construct racing plant and
for working capital/
Underwriter—None, but Dr. Frank
Porter

Miller

of

Los

to sell the securities

of Texas

at

Finance Corp.
(letter of notification) 60,000 shares of common
stock (par $1) and 30,000 warrants to
purchase 30,000
shares of common stock (warrants exercisable at
$7.50
per share on or prior to April 1, 1954).
Each
purchasep-y
of two

common

$5

share.

per

shares will receive

one

warrant.

Proceeds—For working capital.

City, Okla.

Price— '

Office-

Underwriter—George F. Breen,

New York.

.Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.
March 28 filed
stock

mon

of

Great

an

unspecified number of shares of

com¬

(no par) to be offered in exchange for shares
Lakes

Steamship Co.,

Inc.

common

stock,

of

which 61,109 shares are held by Great Lakes and 118,441

by

others.

Parsons &

Dealer-Manager—Hemphill,

Noyes,

Graham

Co., New York.

Radioactive

Products, Inc.,

March 14 (letter of notification)

Detroit, Mich.

112,500 shares of class A

convertible stock (par

by

$1), being offered for subscription
stockholders at rate of one class A share for

common

Angeles, Calif., will be
public."

and

common shares held, rights to expire, on April
Price—$1.25 per share. Proceeds — For equipment
working capital. Office — 443 West Congress St.,

Underwriter—A. H. Vogel & Co., De¬

troit, Mich.
if Rainbow Oil Ltd.

(4/30)

April 10 filed 350,000 shares of capital stock (par $5—
Canadian).
Price—To be supplied by amendment. Pro¬
ceeds—To retire notes and

develop oil lands.
OfficesAlberta, Canada, and Cleveland, O.
Under¬
writers—Hayden, Stone & Co., New York; and T. H.
Jones & Co., Cleveland, Ohio.
Part of shares are ex¬
pected to be offered for sale in Canada.
Calgary,

(4/24-25)
6%

area

Probable underwriters

each two

by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co.; Kuhn, Loeb
& Co.; Shields & Co.; The First Boston
Corp. Bids—To
be received up to 11 a.m.
(EDT) on May 6.
—

$58,180,000.

Petroleum

stockholders of

gram.

tion.

of

stock; Stone & Webster Securi¬
Corp.; and Glore, Forgan & Co., both of New York.

ties

Oklahoma

(par $1)

share for each eight

shares held; rights to expire May 26.

estimated

an

Feb. 5

"engaged

Newport Steel Corp., Newport, Ky.
Feb. 5 (letter of notification) 1,200 shares of

Reis

(Robert)

&

Co.

Jan. 29

(letter of notification) 7,000 shares of $1.25 div¬
idend
prior preference stock
(par $10)
and 40,000
shares of common stock (par $1).
Price—$7.37V2 per
share for the preferred and $1.12 % per share for com¬
Proceeds—To Estate of Arthur M. Reis, deceased.

mon.

Underwriter— None, but Lehman
will act as broker.

Brothers, New York,

if Reymert Extension Silver Mines, Phoenix, Ariz.
April 8 (letter of notification) 200,000 shares of capital
stock (par 50 cents) to be offered in units of four shares.
Price—50 cents per unit. Proceeds—To carry out dia¬
mond drilling program. Address — c/o Mr. McGinnis,
P.

to the

O. Box 3617,

Phoenix, Ariz. Underwriter—None.

Ridley Mines Holding Co., Grafton, N. D.
Feb. 15 filed 100,000 shares of common stock. Price—At
par ($5 per share). Proceeds—For exploration and other"
mining purposes. Business — Uranium mining. Under¬
writer—None.

common

selling stockholder. Underwriter — Merrill Lynch,
Pierce, Fenner & Beane, Louisville, Ky.
Noranda Oil Corp., San Antonio, Tex.
Jan. 29 (letter of notification) 10,000 shares of common
stock (par $1).
Price — At market (approximately 75
cents per share).

fice—2101

Proceeds—To Aristide M. Joncas. Of¬

Transit

Tower,

San Antonio

5, Tex.

Under¬

writer—C. K. Pistell & Co., Inc., New York.
Oil & Gas Property
Management, Inc. (4/23)
April 4 filed $10,000,000 of 4% income debentures due
May 1, 1967 and 380,000 shares of common stock (par
$1). The debentures and 300,000 shares of stock will be

publicly offered
shares

of

in units of $1,000 debentures and 30
stock, remaining 80,000 shares to be sold to

officer and

two other companies. Price—$1,030 per
80,000 shares at $1 per share. Proceeds—For
general corporate purposes. Office—Dallas, Texas. Un¬
derwriter—Dominick & Dominick, New York.
■
one

unit

and

Price—$9

Oregon Fibre Products, Inc., Pilot Rock, Ore.
1 filed $2,500,000 5%
sinking fund debentures due
Jan. 1, 1968
(in denominations of $100 each); 5,000
Feb.

shares of 6% cumulative preferred stock (par $100) and
common stock (par $1) to be offered in

60,000 shares of
units
one

of $100 of debentures and two common shares or
share of preferred and two common shares. Price—

$162

per

new

construction

unit; debentures and preferred stock may also
be purchased at face value separately.
Proceeds—For

and

hardboard

and

plant.

effective March 12.

a

Robinson
Jan. 4 filed

(J. W.)

Co., Los Angeles, Calif.

100,000 shares of capital stock to be offered

rata basis to stockholders of record Nov. 23,
1951 (approximately 33 in number) for a 30-day period,
with an oversubscription privilege. Unsubscribed shares
on

a

pro

to be sold

privately to individuals selected by company.
share). Underwriter—None. Pro¬
For working capital. Business — Department

Price—At par ($10 per

.

Plywood Corp., Portland, Ore.

191 shares

Co.,

the

stock

Proceeds—To
new

&

(par $1). Price — At market (estimated at about
$11.84 per share). Proceeds — To Bernard A. Mitchell,

Beverly, Mass.

100,000 shares of

expansion

Stanley

Underwriter—Paine, Webber, Jackson & Curtis,
Boston, Mass. and New York, N. Y.

stock

April 2.

Price—To be supplied by amendment.

Proceeds—For

ness.

National Research

March 28 filed

Detroit 26, Mich.

21

each

Dec. 19

$50,000,000 of common stock to parent, American Tele¬
phone & Telegraph Co., will be used for new construc¬

March

shares of

for

•

its

21.

Co.

share

Price—To

on

Peoples Finance Corp., Montgomery, Ala.
(letter of notification) 15,000 shares of common
stock (par $1). Price—$3
per share. Underwriter—Carl¬
son & Co.,
Birmingham, Ala. Proceeds—To expand busi¬

Alfalfa

April 11 filed $20,000,000 of 32-yeaf debentures due May
1, 1984. Proceeds—From sale of bonds and from sale of

(Glenn L.)

new

May 8.

Underwriter—Morgan

New

York.

one

(par $10)

stockholders

common

York.

if New Jersey Bell Telephone Co.

Martin

of

by amendment.

ers—Hayden, Stone & Co. and Adamex Securities Corp.,
,

rate

held; rights to expire

supplied

program.

at

.

(4/22)

stock

common

subscription by

April 22

shares

seven

or

at

,

Pennsylvania Salt Manufacturing Co.

existing chlorophyll extraction facil¬
ities and inventory and for construction of new extract¬
ing plant. Office—Lamar, Colo. Underwriter—None.

per

tional

,

Loch-Lynn Gas Corp.

pay

common

and

& Hoverson Co.

common stock (par $1).
supplied by amendment. UnderwriterSills, Fairman & Harris, Inc., Chicago, 111. Proceeds—
To eight selling stockholders.
Offering—Date indefinite.

Price—To

or

National

writer—None.

Corp. to

mon

43

equipment. Business—Softboard
Underwriter—None.
Statement

ceeds

—

store.

Statement effective Jan.

28.

if Rochdale Cooperative Services, Inc.
April 7 (letter of notification) 20,000 shares of common
stock (no par). Price—$1.51 per share. Proceeds —For
working capital. Office—26th and Virginia Ave., N. W.,
Washington 7, D. C. Underwriter—None.
Rochester

Telephone Corp. (4/23)
60,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—To repay $3,200,000 bank loans, to redeem
$2,282,600 first cumulative preferred stock and for con¬
struction expenses.
Underwriter — The First Boston
Corp., New York.
March

San

26

filed

Francisco

Brewing Corp.
25,666 shares of capital stock (par $10).
supplied by amendment. Proceeds—To six

March 27 filed
Price—To be

Underwriters — Blyth & Co., Inc.
& Co., both of San Francisco, Calif.

selling stockholders.
and Conrad, Bruce

Continued

on

page

44

44

The Commercial and Financial Chronicle

(1636)

Continued from page

working capital and general corporate purposes. Under- . general corporate purposes. Office — 319 West Market
writers—Gearhart, Kinnard & Otis, Inc., New York, and ♦ St., Lima, Ohio. Underwriter—None.-

43

Sargent & Greenleaf, Inc., Rochester, N. Y.
18 (letter of notification) 5,500 shares of common

Sheehan, McCoy & Willard, Boston, Mass.

Feb

(par $1). Price—At market (approximately $6 per
share). Proceeds—To Howard S. Thomas, Jr., the selling
stockholder.
Underwriter—Franklin & Co., New York.
stock

(letter of notification) 10,000 shares of com¬
mon stock
(par $10). Price—$13.62Ms per share. Pro¬
ceeds—For operating expenses.
Underwriter — Smith,
Polian & Co., Omaha, Neb.
March 21

which
500,000 shares are for account of company.
Price—At
par ($1 per share).
Proceeds—For exploration and de¬
velopment costs and working capital.
Underwriter—
(4/18) <
800,000 shares of com¬
mon
stock (par one cent).
Price—32 cents per share.
Proceeds—For working capital. Office—220 Paramount
Building, Denver 2, Colo.
Underwriter —James M.
Toolan & Co., New York.
:
*
'j,
%*\
y,r
Vt

j

.

1V-

.•

•

,

it Sonic Research Corp., Boston, Mass.
April 8 (letter of notification) 5,000 shares of common
(no par).
Price—$20 per share.
Proceeds—For
working capital. Office—15 Chardon St., Boston, Mass.
Underwriter—F. S. Emery & Co., Inc., Boston, Mass.

stock

it Sonoco Products Co., Hartsville, S. C.
April 15 filed 150,000 shares of common stock (par $5)
to be offered for subscription by stockholders of record
JMIarch 21 at rate of "slightly in excess of one share for
each two shares held." Price—To be supplied by amend¬
ment

(probably around $17.50 per share). Proceeds—For
working capital. Business — Manufacture and sale of
paper carriers, winding cores, and other textile special¬
ties. Underwriters—R. S. Dickson & Co., Charlotte, N. C.,
and G. H. Crawford
•

March

$4.50)

at

rate

of April

as

of

share for each

one

15; rights to expire

five shares

May 1.

on

Price

—To be supplied by amendment. Proceeds — For new
construction. Underwriter—Kidder, Peabody & Co., New
York.
./ '
V.
.■
^t
.

(

it South Central Fire & Casualty Insurance Co.
April 10 (letter of notification) 2,500 shares of common
stock.'
Price—$100 per share/
Proceeds—To increase
capitalization.
Office—Starkville, Miss.
Underwriter—
None.
.

-

•'

■../

■

Southern

„

Oil Corp.,

A

common

stock

and

—None.
•

' .vj..

Southern

10,000 shares of class B

;

"

common

Proceeds—To drill

Mont. Underwriter

■•./: .•/''/,■

/•

■■

v.,

'-/v

Union Gas

Co., Dallas, Tex. (5/1)
April 8 filed $5,000,000 of sinking fund debentures due
1972 and 30,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—For

plant expansion.

Underwriter—Blair,

1ms & Co., Inc., New York.
•

Southern Union Gas

Rol-

Co., Dallas, Tex.

(4/24)

April 3 filed 166,706 shares of common stock (par $1)
be offered for subscription by common stockholders
share for each 10 shares

one

then held.

Price—To be supplied

ceeds—For

new

construction.
Gas

by amendment.

Pro¬

(4/29)

March 27 filed 500,000 shares of common

cents), of which 330,000 shares

$5,050

21.

class

300

and

,

payment); 700 class A shares to be offered

partial

exchange for standard common stock on a share for

1982 and

tion.

(5/6)

$8,000,000 of first mortgage bonds due

$100)

equipment

new

Statement effective

rate of

March 19

stock

(par 10

basis,

being sold by

the

Business

Co., Inc.
common

stock (par $1),

Offer will be consummated if

before

^-Standard Factors Corp., N. Y.
April 11 (letter of notification) $250,000 of 5% subordi¬
nated debentures due Dec.
31, 1957 and 10,000 shares of
stock

Price—For

(par $1) offered initially to stockholders
$1,000 debenture, $950; and for each

each

common share, $3.50.
Proceeds—-For working capital.
Office—270 Madison Avenue, New York
16/ N. Y. Un¬
derwriter—None.
.

filed

$30,000,000

first

of

Corp. (jointly).

to noon

up

Okla.

Office—3109

of record
each

common

(no par)

and

«

all

com¬

stock (par

share).

$1). Price—At market (around $6.75 per
Proceeds—To selling stockholders. Underwriters

]c?t ^ 9?"'
of New

York..

Stout

Oil

31

the basis

on

shares held;

kangley & Co. and Carreau & Co.,

Co., Denver, Colo.

March 25 (letter of
notification) 6,000,000 shares of com¬
mon stock. Price—At
par (five cents per share).
Pro¬
ceeds—For drilling expenses.
Office
1729 Stout St.,

Underwriter—None.

it Stylon Corp., Milford, Mass.
April 9 (letter of notification) 275,000 shares of
common
stock. Price — At par ($1
per share). Proceeds
For




common

of

one

rights expire

pro

(par

rata

$10),

stockholders
share for

new

April 21.

Price
share for preferred and $17.15 per share fpr

per

stock.

new

on

Proceeds—For reduction

loans

of bank

construction.

^Worcester County Electric Co.
April
due

$4,000,00 first mortgage bonds, series C,
Proceeds—To repay bank loans and for new

1982.

construction.

Underwriter—To

petitive bidding.

be

determined

by

com¬

Probable underwriters:

Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co. and Union Securities Corp.
(jointly); The First Boston Corp.; Merrill Lynch, Pierce
Fenner & Beane.
Bids—Expected to be received up to
noon
(EDT) on May 13 at 441 Stuart Street, Boston
16, Mass.

(4/29)

mortgage and

(5/13)

15 filed

col¬

Zeigler Coal & Coke Co., Chicago, III.
27 filed 66,125 shares of common stock,

of

one

par

share for each five

new

($10

share).

per

shares

Proceeds—To

—

held.

repay

be

to

Price—At

bank

loans.

Business—Owner and lessor of coal properties. Office—
21 E. Van Buren St., Chicago 5, 111. Underwirter—None.

(EDT)

on

Bids—Expected to be

April 29.

Prospective Offerings
Aero quip

financing.

S.

Manganese Corp., Phoenix, Ariz.
April 1 (letter of notification) 17,500 shares of

.;

Greenfield

,/

-

..."

&

Co.

will

act

•.

writer—Watling

Alabama

•;

be

Gas

&

Co.,

Detroit,

Corp.

competitive bidding. Probable bidders: Halsey,
Inc.; White, Weld & Co., Kidder, Peabody
Stone & Webster Securities Corp. (jointly);
The First Boston Corp.; Salomon Bros. & Hutzler, Equit¬
able Securities

Corp. and Carl M. Loeb, Rhoades & Co.

(jointly).
American

*

Feb.
new

Underwriters—Barrett Herrick & Co., Inc.,

5

Can Co.

directors

money

approved the raising of $50,000,000 of

to provide for the company's plant improve¬

ment program

Vogel & Co., Detroit, Mich. Offer¬
ing—Expected next week.
'

ing half of the new money through the sale of debentures
(since placed priately) and the remaining $25,000,000
through the sale of additional common stock which
would be offered to common stockholders for subscrip¬
tion.
Stockholders
will vote. April 29 on approving

Services, Inc.
(letter of notification) 2,000 shares of common
stock (no par). Price—$20 per share. Proceeds—To W.
H. Thompson, the selling stockholder.
Underwriters—
25

Barron

financing

& Pancoast and Russ &

ferred and

McColloch, Ft. Worth, Tex.; Dewar, Roberston
Co., both of San Antonio, Tex.;
and Laird & Co., Wilmington, Del.

plans and proposed 4-for-l
common

stocks.

ley & Co., New York.

split-up of pre¬
Underwriter—Morgan Stan¬
-

,

,

mon

stock

(par $5)

to

be Offered

tor

■

' *

shares of

com-

subscription

-

by '

common stockholders at rate of one new share for each

16 shares held.

•

Price—$11.50

per-

share. ~! Proceeds—For

C. H.

and for additional working capital.

Black, Chairman, said the board's plans call for provid¬

Welex Jet

*

$4,000,-

& Co. and

non-selling stockholders. Price—To
supplied by amendment. Proceeds—To certain selling

'

Pro¬

working capital.

mined by

to three

West Ohio Gas Co.* Lima, Ohio
March 25 (letter of notification) 19,753

Under¬

Mich.

Stuart & Co.

Victoreen Instrument Co., Cleveland, Ohio

Jan.

Lerchen

000 first mortgage bonds, series C, due 1971. Proceeds—
For construction program. Underwriters—To be deter¬

March 28 filed 90,000 shares of common stock (par $1), "
of which 60,000 shares will be publicly offered and 30,000 shares

750,000 shares,

March 7 sought SEC authority to issue and sell

it United Wholesale Druggists, Inc. (Ga.)
April 7 (letter of notification) 4,467 shares of preferred
stock. Price—At par ($25 per share). Proceeds—To purchase* merchandise and for working capital.
Office—
1120 Oakleigh Drive, East Point, Ga. Underwriter—None.
•

stock to 1,000,000 from

ceeds—For additional

as
...

common

and to issue 37,500 shares as a 5% stock dividend.

common

stock (par $1). Price—$2 per share. Proceeds—To Green¬
field & Co., et al. Office—610 Heard Bldg., Phoenix, Ariz.

broker.

announced that con¬
possibility of equity
On Feb. 18, stockholders voted to increase the

authorized

Liberty Bank Bldg., Oklahoma City,

Underwriter—None, but

Corp.

Jan. 4, Don T. McKone, Chairman,
sideration was being given to the

—

Denver, Colo.

on a

stock

common

Underwriters—Smith, Barney &
Co., New York, and Robert W. Baird & Co., Inc., Mil¬
waukee, Wis.

(par

New York, and A. H.

notification) 14,500 shares of

■

March

seven

—$101.50

Underwriter—None.

stockholders.
Standard Thomson
Corp.
March 17 (letter of
mon

288,208 shares of

being offered for subscription by

it United Oil Corp., Oklahoma City, Okla.
'
April 9 (letter of notification) 900,000 shares of com¬
stock (par 10 cents).
Price—At market (approxi¬
mately 22 cents per share). Proceeds—For working cap¬

U.

May 14.
Dealer-Managers—F.
Eberstadt & Co., Inc., and Hirsch &
Co., both of New York.

common

Light Co. *
15,000 shares of 4.80% cumulative pre¬

offered for subscription by common stockholders at rate

of General shares tender their stock in

or

Price—To

Proceeds—For construction

Power &

filed

and

.

are

being offered in exchange for common stock of General
Instrument Corp. on basis of four Standard shares for

on

common

issory notes and for new
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston.; Lehman
Brothers; Kuhn, Loeb & Co. and Harriman Ripley & Co.
Inc. (jointly); White, Weld & Co. and Shields & Co.

received

Co., Cin¬
cinnati, O., and Craigmyle, Pinney & Co., New York.

exchange

(par $10)
stockholders at

March

ital.

each five General shares.

subscription by

A*

*

stock

preferred stockholders of record March 31

March 25.

Union Electric Co. of Missouri

To acquire additional leases and to drill wells.
—Oil and gas. Underwriters—W. E. Hutton &

Iiolders of 85%

r:

common

ferred stock (par $100), being offered for subscription by

Corp., New York.
27

v

Underwriter—None.

Wisconsin

Gas, Electric Light & Power Co. (4/23)
140,000 shares of common stock (par
$10). Price—To be supplied by amendment. Proceeds—
For new construction. Underwriters—Blyth & Co., Inc.,
San Francisco and New York, and The First Boston

March

'»

Power Co.

share for each five shares held.

one

program.

filed

31

■

r

.

be supplied by amendment.

Tucson

March

& Hutz-

shares.

common

None.

-

Electric

to be offered for

in units of one preferred share and
Price—$200 per unit. Proceeds—For
and working capital.
Underwriter—

be sold

to

"

April 9 filed 702,486 shares of

Corp., Chattanooga, Tenn.
stock

bonds, to be determined by
Probable bidders: Halsey, Stuart &

&

Wisconsin

working capital. Office—1 Main St., Houston, Tex.
Underwriter—Gearhart, Kinnard & Otis, Inc., New York.

common

'

Corp.; Union Securities Corp. and Harriman
Co., Inc. (jointly).
Offering—Expected in

Ripley
May.

For

20,000 shares of

r

Underwriters—For

Boston

it Transgulf Corp., Houston, Tex.
April 10 (letter of notification) 23,000 shares of capital
stock (par 10 cents).
Price—$1 per share. Proceeds—

filed

22.

to

(jointly); Equitable Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Glore, Forgan & Co.; The First

Torrington Water Co., Torrington, Conn.
(letter of notification) 3,174 shares of capital
stock (par $25). Price—At approximately $27 per share.
Proceeds—To Muriel Alvord, et al. Underwriter—Wood,
Struthers & Co., New York.

21

added

Co. Inc.; Lehman Brothers and Salomon Bros.

Underwriters—To be determined by com¬

and 2,000 shares of 5% cumulative preferred stock

;

•

ler

Probable bidders Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Lehman Brothers and Blyth &
Co., Inc. (jointly); Salomon Bros. & Hutzler; Harriman /
Ripley & Co., Inc.; Union Securities Corp.; Hemphill, *
Noyes, Graham, Parsons & Co. and Drexel & Co. (joint- <
ly); Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); The First Boston Corp. Bids
—Expected to be received at 11:30 a.m. (EDT) on May 6.

Jan.

April

on

be

competitive bidding.

petitive bidding.

Tri-State Telecasting

expire

to

Proceeds—To

.Wisconsin Electric Power Co.

—

construction.

•

>

April 9 filed $12,500,000 of first mortgage bonds due 1982.
Proceeds—To repay bank loans and for new construc¬

$5,000,000 of sinking fund debentures due 1971.
To repay short-term borowings and for new

Proceeds

'

•

Price—$11.50 per
working capital and
used for purchase of additional equipment. Underwriter
—Blyth & Co., Inc., San Francisco, Calif., and New York.

plant, to repay loan and for working capital. BusinessOperator of green veneer plant. Underwriter—None.
filed

rights

share.

basis; 1.400 class A shares to be sold to manage¬
ment group of Superior company; and all of 9,000 shares
of preferred stock for cash at par or in exchange for
standard stock. Proceeds—To purchase site for plywood

Texas Electric Service Co., Ft. Worth, Tex.

/

,

held;

share

March 26

;

(par $1)/
being offered for subscription by stockholders of record
April 8 at rate of three new shares for each 10 shaj*ei

value of Standard Veneer & Timber Co.

in

approximately 94.6% of outstand¬

March 10 filed 165,049 shares of common stock

unit (subscribers must surrender $2,500 par
preferred stoek

per

share.

'Western Air Lines, Inc.

mon

March 17 filed 486,858 shares of

14 shares
per

ing common stock, proposes to purchase all shares not
subscribed by public holders. Statement effective March

preferred stock

shares

company and 170,000 shares by certain selling stockhold¬
ers.
Price—To be supplied by amendment.
Proceeds—

W Standard Coil Products

Electric

Penn

share for each

(jointly); Dillon, Read & Co. Inc.; Blyth & Co., Inc. and

Underwriter—None.

Co.

Electric Co., owner of

(par $100), of which 1,500 class
B shares are to be offered in
units of five shares of class A and one of class B at
A

Union Securities
'Southwest Natural

West
one

Proceeds—To pay bank loans and for property additions
and improvements. Underwriters — None.-West Penn

Proceeds—To retire prom¬
construction. Underwriter—To

,

April 24 at rate of

than

lateral trust bonds, due 1982.

to

of record

(other

4, at rate of

Superior Plywood Corp., Crescent City, Calif.
March 17 filed 3,600 shares of class A ioting common
stock (par $10), 300 shares of class B non-voting com¬
mon stock
(par $5,000) and 9,000 shares of 6% cumu¬

a

239,997 shares of class

stock. Price—At par ($1 per share).
oil wells. Address—Box 531, Billings,

stockholders

of

by
Co.) -of

held; rights to expire in April 28. Price—$37

10

Billings, Mont.

March 26 (letter of notification)

Co., Pittsburgh, Pa.

record April

March 18

& Gas Co.*''

26 filed 417,719 shares of common stock
(par»
being first offered for subscription by common

stockholders

held

Co., Inc., Columbia, S. C.

Carolina Electric

South

(letter of notification) 3,000 shares of 6% cumu¬
lative preferred stock. Price—At par ($100 per share). *
Proceeds—For working capital. Office—6323 Avondale

in

Securities Ltd.

• Sioux Oil Co., Denver, Colo.
March 21 (letter of notification)

,

West Penn Power

Feb. 28 filed 221,786 shares of no par common stock
which 11,898
shares are offered for subscription

Chicago, III.

Jan. 29

lative

Signal Mines, Ltd., Toronto, Canada
of common stock of

March 17 filed 600,000 shares

Northeastern

Sun Electric Corp.,

Ave., Chicago 31, 111. Underwriter—None.

Seattle, Wash.

Seattle Gas Co.,

Thursday, April 17, 1952

.

.

,

->

Arkansas
March 14 it

Power

&

•

.

■

t

Light Co.

reported company plans sale in October
first mortgage bonds; Underwriters—To
be determined by competitive bidding. ' Probable bid¬
ders: Halsey, Stuart1 & Co-. Inc.;* Equitable - Securities
was

of $12,009,600

Number 5108

Volume 175

..

.

The Commercial and Financial Chronicle

Corp., and Central Republic Co. (Inc.) (jointly); Lehman

Cooper-Bessemer Corp.

Brothers and Stone & Webster Securities Corp. (jointly);
Union Securities Corp.; Merrill Lynch, Pierce, Fenner

March 22 it

General

announced stockholders will vote

was

April
28 on increasing authorized common stock (par $5) from
500,000 shares (476,578 shares outstanding) to 1,000,000

& Beane; Blyth & Co., Inc.
Atlantic

(1637)

shares

Refining Co.

take

to

future stock dividends and

of

care

March

April 22

vide additional stock for future financing of the corpora¬
tion's expansion program. No plan involving the issuing

when

additional

of any additional common shares is

ment

retained

sidered

financing will be required to supple¬
earnings available for capital expend¬
itures." The amount and timing of such financing can¬
not be presently announced. Traditional Underwriter—
Smith, Barney & Co., New York.
\
Bank of Passaic & Trust

con¬

•

sell this

Co., Chicago, III.

vote

6

it

'

Public

Utilities Corp.
reported the corporation

was

"

r

,

J

is expected to

summer

approximately 530,000 additional shares
common
stock., Stockholders on April 7 rejected va
proposal to authorize issuance of common stock without
of

requiring preemptive rights. Underwriters—If stock is
sold at competitive bidding, probable bidders
may in¬
clude:
Lehman Brothers; The First Boston Corp
In
July,1951, Merrill Lynch, Pierce, Fenner & Beane acted
as clearing
agent for an offering of common stock to

.

Crane

*"

••

General

Feb.

ratio of 3.64 preferred shares for each share of common.

will

exchange for stock of another com¬

pany.

was announced stockholders on
April 30 will
increasing the authorized indebtedness from $5,000,000 to $15,000,000 (none, presently outstanding) and
the authorized preferred stock (par $50) to 137,727 shares
from 37,727 shares, which are all outstanding. Traditional
Underwriter—Riter & Co., New York.

olj-?£% convertible preferred stock (par $25). They will
belbffered rights to subscribe to the 40,000 shares in the

shares in

common

by the directors.

vote Qi1

Co., Passaic, N. J.

stockholders

Of the increase, it is reported
company is con¬
sidering issuance of 10,000 preferred shares and 45$00

March 3 it

March 5 stockholders approved the issuance of $1,000,000

Equipment Corp,

announced

was

on

shares.

Copperweld Steel Co.

„

;■

presently being

it

increasing authorized common stock from
1,000,000 shares to 1,500,000 shares and authorized pre¬
ferred stock (par $100) from
120,000 shares to 150,000

pro¬

March 21, Robert H. Colley, President, said in the com-?'
papy's annual report that "the time may be coming

Precision

31

45

~

.

held.

Rights will expire

on

V

June 30.

March 31 it

~~

>

22

Bell Telephone Co. of Pennsylvania ; :
1
2 it was announced that company's construction
.

in 1952. Underwriters—For bonds to be decided by com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and
Union Securities Corp. (jointly); The First Boston Corp.

March 28 it

"

announced company

was

-.e

and

'

securities.

It

is

also

expected

to

fund

Utilities

ic Dallas Power & Light Co.
April 4 it
100,000

Probable bidders

of

Co.

reported company expects to offer about
debentures within the next two months.

,

Davison

March 25 stockholders voted to increase authorized pre¬
ferred stock
(par $100) from 150,000 shares (130,300

holders

shares outstanding) to 225,000 shares to enable company
to meet future capital requirements. There are no im¬

•

Central

Vermont Public Service

in

March,
-

..

.

*

New York.

Corp.

stock

one

New

Service Co., parent, owner of 35.5%
common,

shares.

April 11 it

new

Inc.; Lehman Brothers; Kidder, Peabody &
Co.; Coffin & Burr, Inc. and First Boston Corp. (joint¬
ly); R. W. Pressprich & Co. and Equitable Securities
Corp. (jointly); Union Securities Corp. (2) For stock,
Coffin & Burr, Inc.; Blyth & Co.,
Inc.; Merrill Lynch,
Pierce, Fenner & Beane.

First

March
tional

and the remainder used for capital improvements.

& Co. Inc.

Boston

Jan.

11 it

Power

26

stockholders

authorized

common

300,000 shares (par $5) to 600,000 shares (par
$7), placing the company in a position to consider from

Portland

stock

(4/30)

200,000 addi¬
(par $12.50) to common
sale

of

■

.

to

rights

time

stock

dividends

and

the

giving of stock

warrants to present stockholders.

or

Underwriter*

:—May include Westheimer & Co., Cincinnati, O. Preyious public financing handled
by W. E. Hutton & Co. and
W. D. Gradison & Co., also of Cincinnati. *

Gulf

sell
new

8

Power Co.

(6/24)

it

was announced
company plans to issue arid
$7,000,000 of first mortgage bonds. Proceeds—Far

construction.

Underwriters—To

competitive bidding.

be determined by

Probable bidders:

Halsey, Stuart
& Co. Inc.; Coffin & Burr,
Inc.; The First Boston Corp.;
Kidder, Peabody & Co.; Union Securities Corp.; Equita¬
ble Securities Corp.; Blyth & Co., Inc.;
Kuhn, Loeb &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Salomon
Bros. & Hutzler and Drexel & Co. (jointly).
Bids—Ex¬
pected to be opened on or about June 24.
Idaho

Power

Co.

Feb. 27 T. E. Roach,

per share.
Proceeds—To increase
Underwriter—None.

Corp.

time

President, announced that the com¬
pany's present plans consist of the sale this summer of
about 225,000 additional shares of common stock
(par
$20), but no preferred stock. Price—At a minimum of
$35 per share net to company/ Underwriters — Latest
common stock financing in
April, 1949, was handled by
Blyth & Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp.
Proceeds—To repay bank loans and for

construction

Illinois

April 9 it

was

'

':

(7/1)

Telephone Co.

announced company intends to offer 682,-

454 shares of its

common

stock to shareholders

for sub¬

scription on or before July 1, 1952. Price—At par ($106
per share). Proceeds—To repay advances from American
Telephone & Telegraph Co. (owner of 99.31% of Illinois
Bell stock).

Illinois

i

announced that additional

program.

Bell

Underwriter—None.

Central

RR.

-

March 28 company applied to ICC for authority to issue
and sell $25,000,000
consolidated mortgage bond*
meet 1952-1955

obtained from the sale of

:

t

increased

stock from

financing will
be necessary to complete the company's construction
program which is expected to cost about $28,000,000
and it is contemplated that new capital needed will be

Un¬

..

of

approved

common

Price—$30

Florida

Corp. and Halsey, Stuart

•

shares of

capital and surplus.

May 1, 1982; without competitive bidding. Proceeds
—To pay at maturity $49,988,000 of 4% non-callable consolidated first mortgage bonds due July 1, 1952, and to
retire outstanding $11,739,000 first and ref.
mtge. bonds
derwriters—The First

Bank

stockholders

the bank.

bonds

due

,

National

10

March
,

permanent

Unsubscribed shares would be purchased by Transamerica Corp., which owns a controlling stock interest in

Chicago & Western Indiana RR. (5/6)
April 5, the ICC approved issuance
of
$64,239,000
mortgage

a

stockholders of record April 30 at rate of one new share
for each five shares held; rights to expire on May 29.

•

trust

Proceeds would be

be

Stuart & Co.

collateral

authority to
promissory notes to

on creating an
preferred stock (par $50) of which 120,000 shares would
initially offered. Underwriter — F. Eberstadt & Co.,
Inc., New York.

Underwriters—To be determined by competi¬
tive bidding. Probable bidders: (1) For
bonds, Halsey,

and

'/'/

announced stockholders will vote May 8
issue of 130,000 shares of 5% convertible

was

/.

Globe-Wernicke Co.

Feb.

* Elliott Co.

Proceeds—To repay bank loans and for
hew con¬

general

/-' "•/

applied to construction program pending
financing program planned in 1953.

struction.

of

,

.

of Central Vermont

will waive its subscription rights to the

■'

issue up to $2,500,000 in unsecured
mature not later than Dec. 31, 1953.

England Public

com¬

1,000,000 shares (approximately 938,006

derwriter—McCormick & Co., Chicago, 111.

Kidder, Peabody & Co.,

April 4

(par $6), latter issue to be first offered
by common stockholders at the rate of

share for each six shares held.

Underwriters—Alex. Brown

and

if El Paso Electric Co. (Texas) /.
company applied to the FPC for

filed an application with the SEC for
authority to issue and sell $1,500,000 of first mortgage
bonds, series H, due May 1, 1982, and 108,900 shares of
common

l-for-5 basis.

a

it Drewrys Ltd., U. S. A., Inc. ./
/*
April 4 it was reported company may later this month
consider possible/financing. Underwriters—Probably A.
C. Allyn & Co., Inc., Chicago, and Bear, Stearns & Co.,

company

for subscription

on

stock from

shares outstanding) to 1,250,000 shares to provide addi¬
tional stock for future expansion needs. Traditional Un¬

.

(

.

April 15

Corp. ~

Sons, Baltimore, Md-,
New York.
/
./■_

1951

-

Glass Fibres, Inc.
April 7 stockholders voted to increase authorized
mon

announced stockholders will vote

was

,

,

&

mediate plans for sale of any additional preferred stock.
March 4 it was reported company plans the sale this
Fall of about $5,500,000 first mortgage bonds.
Latest

financing was done privately
through Kidder, Peabody & Co.

new

April
17 on authorizing creation of an issue of 300,000 shares
of convertible preferred stock (par $50), of which it is
planned to offer 128,533 shares first to common stock¬

Central Hudson Gas & Electric Corp.

bond

Chemical

March 13 it

California Co., Inc., San Francisco, Calif.

was announced company plans issuance and
$20,0X0,000 of first mortgage bonds* Proceeds—

Securities Corp. and Equitable Securities Cork.
(jointly); Harriman Ripley & Co. Inc. Bids—Expected
on July
8.
^

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Kidder, Peabody &

Co., Blyth & Co., Inc. and Merrill Lynch, Pierce, Fenner
'& Beane (jointly); The First Boston Corp.; Lehman Bro¬
thers; Union Securities Corp.; Harriman Ripley & Co.,
Inc.; Equitable Securities Corp. Registration—Planned
for April 21. Bids — Expected to be received at noon
(EDT) on May 26.
v.
' v
;
; .

tp.

Union

construction.

Proceeds will be used to pay for additions and improve¬
ments
to
property.
Traditional Underwriters — First

;

Proceeds—For

t,

,

Co., Inc. and Kidder, Peabody & Co. (jointly); Shields
& ; Co.
and • Salomon
Bros.
&
Hutzler
(jointly);

(5/26)

stock.

of

it

.

.

Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.;. Morgan Stanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb & Co.; Blyth &

-

reported company plans to issue and sell

was

shares of preferred

...

(7/8)

For new construction.

J

.

8

sale

.

was

$2,000,000

/

.

Feb.

was announced stockholders will vote April 24
increasing authorized common stock from 1,300,000
to 2,000,000 shares.
There are no plans to sell
any additional shares at this time.
•/
*.*•

Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Goldman, Sachs & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Harriman Ripley & Co., Inc. -•
California-Pacific

'

\

\v'

\
1

,

Georgia Power Co.

shares

for bonds:

Feb. 29 it

Co., Inc.

stockholders.

on

loans

bank

.

April 8 it

.

plans to spend $56,-

which will total $8,500,000 by June 30.

April

stock from 3,000,000

Clark, Dbdge & Co., New York.

Crown Cork & Seal

000,000 in 1952, 1953 and 1954 for construction program,
of which $32,000,000 would have to be raised from sale
of

common

It is planned to issue and sell $12,-;
000,000 of securities and use the proceeds to retire $4,-;'
000,000 bank loans, $3,000,000 for investment in Canadian
Subsidiary and the balance for expansion program and
working capital. Underwriters — Morgan Stanley & Co.;

three years calls for the expenditure
of $247,000,000 of which about $81,700,000 will be spent
program for next

Edison Co.

increasing authorized

on

shares to 3,500,000.

Jan.

Boston

announced stockholders will vote

was

working capital.

was

common

stock and first mort¬

due

without

1982,

competitive

bidding.

Proceed^^p
depleted

bond maturities and to replace

:

Columbus & Southern Ohio Electric Co.
March 7 it was announced
company expects to enter the
permanent financing market about the middle of 1952

With 150,000 to 200,000 shares of
ceeds—For

construction

/Read & Co.,

new common

program.

Company has borrowed $4,000,000 under a
provides for shortterm bank borrowings of not more than $10,000,000. Pre¬
vious bond financing was done privately. Common stock
piay be offered to common stockholders, with Kidder,
gage bonds.

stock. Pro¬

Underwriter—Dillon

Peabody

Inc., New York.

Beane

Connecticut Light & Power Co.
March 1 it was announced that it is presently estimated

Florida
Feb.

.

Consolidated Gas, Electric Light & Power Co. of
Baltimore
•'*«•••
s;
Dec. 24 it was stated that
company plans to issue and sell
both stocks and bonds
during 1952 to an' amount sufficient to raise
approximately

Merrill

Lynch, Pierce, Fenner

&

Power &

Light Co.

directors

construction
This is part
$332,000,000.
Halsey, Stuart & Co. Inc.;

Probable bidders for, bonds:

j

Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; Merrill
Lynch,

Pierce,

Shields &

Fenner; & Beane; Lehman Brothers;
Co.; The First Boston Corp.; Carl M. Loeb,
Stearns & Co. (jointly); White,

$22,000,000. UnderwritershFor bonds to be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co. and The First Boston
Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston
Corp., Alex. Brown & Sons and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred

City Ry.
May
approving issuance of $17,000,000 of 30-year first
mortgage bonds. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;; The First Boston Corp.;
Salomon Bros. &

Proceeds—For

new

Expected in March or,April.
Consolidated Natural
March 27 it

5

was

construction.

.v.."

,

Gas

Offering-

Co.

announced company

v

»

,

4
■'

plans to issue and

sell to its stockholders in June
409,254 additional shares
on a l-for~8 basis... Proceeds-^Fop; new
construction. Underwriter—None.

of capital stock




Rhoades & Co. and Bear,
Weld & Co.
Fort

Worth

March 25 it

27

&

was

Denver

announced stockholders will vote

on

General

Hutzler._

Bank for Reconstruction

5

it

was

.

.iVD

I

reported bank expects to issue and sell

$50,000,000 to $100,000,000 additional bonds in April or
May.
• ;;// ; v,."■/- ;
..^1;
,

Iowa

Power
was

&

Light Co.

(5/14)

reported company plans to offer 226,9&J
stock to stockholders of record about

common

May 14 at rate of one share for each seven shares held;
rights to expire May 28. Registration—Tentatively sched¬
uled for April 25. Underwriter—Smith, Barney &
C6.t
New York.

Iowa

Power

'

&

•

Light Co.

(5/21)
i
March 31 it was reported company plans to issue and
sell $8,000,000 of first mortgage bonds. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; W. C.
Langley & Co., Union Securities Corp. and Glore, Forgan
& Co. (jointly); Smith, Barney & Co.; Lehman Brothers;
White, Weld & Co.; The First Boston Corp.; Kidder, Pea¬
body & Co. Bids—Expected to be received on May 21.
Kansas City Power & Light Co.
4
company
announced that -it
.

Jan.

:

and

Development ("World Bank")
Feb.

shares of

stock sale.

f

International

March 31 it

<

,

•

11

and

agents.

as

approved a $22,100,000
budget for 1952 and $27,800,000 for, 1953.
of a 10-year program estimated to cost

that approximately $11,000,000 of additional
capital will
be required during the latter half of 1952.
; i
,

Co.

&

acting

V
.

*

bank credit recently arranged which

■'

plans
to issue
principal amount first
mortgage bonds (this i&in addition to present preferred
and common stock financing. Underwriters—To
be.„d§termined
by competitive bidding." Probable biddertr
Halsey, Stuart ■& Co. Inc.; Glore, Forgan & Co.; Blyfh
,

and sell in 1952 about $12,000,000

Fuse

Co*, South River, N. J, ;
Jan. 28 Nelson O, JPurt, President, announced company
.is discussing the marketing of unsubscribed 5%% con¬

vertible, prefenrecji .stock, with several underwriters., A
;(totai jpf/5Q^00'shares weife, recently offered, to-common
stockholders at par ($5 per share).
\
,

"

Continued

on

page

4S

46

The Commercial and Financial Chronicle

(1638)

New

Continued from page 45

British

Dominion

Oil

Co., Ltd.

.

March 5 it

and Lazard Freres & Co. (jointly); The First
Corp.; White, Weld & Co. and Shields & Co.

was

& Co., Inc.

1,000,000 shares of additional common stock.

^jointly); Equitable Securities Corp.; Lehman Brothers
and Bear, Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.
Kansas
Feb. 29,

&

Gas

Electric Co.

New

Murray Gill, President, announced that company

securities to market
amount is still un¬
decided. Investment groups had been said to have been
forming on a reported $12,000,000 in bonds and 200,000
of

Probable

stock.

common

bidders

for

mortgage

Underwriters—For

Stuart & Co. Inc.; Lehman Brothers; Union
Securities Corp. and Stone & Webster Securities Corp.
(jointly); Glore, Forgan & Co. and Goldman, Sachs &
Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); The First Boston
Corp. Probable bidders for stock: Union Securities Corp.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); The First Boston Corp. Registration—Expected
on April 30.
Bids—Tentatively expected on bonds up to
noon and on stock up to
10:30 a.m. (EST) on June 10.

announced company plans to finance in

stock, may be Blyth & Co., Inc. and The
First Boston Corp. (jointly); for any preferred, W. C.
Langley & Co., and for any bonds to be determined by
competitive bidding, with the following probable bid¬
common

any

the

of 1 additional

sale

bidding.

System).
by com¬

f:

&

;

bonds, to be determined
Probable bidders:
Halsey, Stuart

—-To increase capital and
surplus.
,

financing there will be
•

$400,000 of

it

stock (latter to be sold to
Corp., parent). Underwriters—

common

announced

was

that

•

will

common

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
Corp. (jointly); W. C. Langley & Co.;
Smith, Barney & Co.

(Glenn

McCarthy
March 18 it

was

of 10,000,000 shares of common stock.

Price—To be sup¬

plied by amendment (probably at $2 per share).
writer—B. V. Christie &

Metals

&

March 24 it

Chemicals

was

Co., Houston, Texas.
Corp.,

Under¬

-

Dallas, Tex.

(5/15)

reported company plans registration of

162,500 shares of

stock

(par 10 cents). Price—
To be supplied by amendment
(expected at $3 per
share).
Proceeds—For new mill and equipment and

working

common

capital.

Underwriter

Beer

—

&

Co.,

Dallas,

Texas.

Middle
Oct. 31

East

it

Industries

Corp., N. Y.

announced

was

company plans to expand itf
capitalization in the near future and to register it»
securities with the SEC preliminary to a large public

offering, the funds to be used to build

new

industrial

projects in Israel.
Minabi
March 21
of

Exploration
it

was

Co., Houston, Tex.

reported early registration is expected

125,000 shares of

common

stock.

Proceeds—To go

certain

selling stockholders. Underwriter
Beissner & Co., Houston, Tex.

—

to

Moroney,

sell

14

it

bonds.

bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields &

& Beane;

Co.

(jointly); Merrill Lynch, Pierce, Fenner
Securities Corp.

Union

National Fuel
Jan.

29

Gas

Co., N. Y.

(5/20)

applied to SEC for authority to issue
and sell $18,000,000 of sinking fund debentures due 1977
company

Proceeds—To repay $11,000,000 bank loans and to loan
to subsidiaries. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:

$7,000,000

Halsey,

Stuart &

Co. Inc.; Blyth & Co.,
Inc.; The First Boston
Corp.; White, Weld & Co.; Harriman Ripley & Co., Inc.
Bids—Expected on or about May 20.
•

National Gypsum Co.

March 25

March

common

on

a

proposal to

increase

stock from 2,500,000 to

5,000,000
shares in order "to prepare
company for the opportuni¬
ties and requirements of the
coming years." No immedi¬
ate plans have
been made for the issuance of
additional

any

common

stock.

W. E. Hutton & Co.,

Inc., New York.

Traditional Underwriters

—

Cincinnati, Ohio, and Blyth & Co.,

•

to increase the authorized
indebtedness from
$20,000,000 to $50,000,000. There are
no immediate
plans for sale of any
securities, but com¬
pany may start using
long-term bank loans
to

Nevada

of

Natural Gas

3Teb.

8

company

relying

on

secure

short-term loans.

Pipe Line Co., Las

Nevada

Vegas,

applied to FPC for

authority to con¬
pipeline from near
Topock, /^riz., to
Las Vegas, Nev., at an
estimated cost of $2,400,880, to
be financed by sale of
$1,600,000 first mortgage bonds,
struct

a

114-mile

$500,00(Lpreferred stock

and




it

$402,500

common

stock.

public

offering).

000

shares

authorized

(11,094,663

common

shares

will

stock

presently

vote

by

of

be

determined

by

1,500,-

bidding.

to

Proceeds—For

cost

construction

pro¬

Public

about

,

pany

Co.

will have

to

raise

500,000

Co.

later.
&

rate

of

held.

one

share

for

Price—To be

it

each

Electric

was

&

announced

Gas

bank
To

—

be

Co.

stockholders

issue of 249,942 shares of
4.70%

16

it

will

(H. H.)

was

.,7

-

'

vote

cumulative pre¬
r
''

Co., Pittsburgh, Pa.

announced

stockholders

will .In

orr a proposal to increase the authorized
stock from 250,000 shares (all

April
com¬

outstanding) to 1.-

Scott Paper Co.

March 7 it
,

was announced
company plans to issue and
103,185 shares of convertible preferred stock to its

stock

end

raise

000,000 Shares in order to make additional stock available
for such corporate purposes as
acquisition of new proper¬
ties, to provide additional capital funds or declaration oi
stock dividends.

;

.

April 15 it

common

retire

Underwriters

1952, vote
mon

bonds only: Halsey, Stuart & Co. Inc.

stockholders at

an

Nov.
'

^Northwest Bancorporation, Minneapolis, Minn.

common

Service

15

Robertson
com¬

$30,000,000 and $32,-

common stock (about
1,100,000 shares) the latter issued first to common stock¬
holders.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders for stock and bonds:
Smith Barney &
Co.; The First Boston Corp.; Glore,
Forgan & Co.; Lehman Brothers and Riter & Co.
(jointly); Equitable Securities Corp.; Union Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬

sell

To

—

to

competitive

ferred stock (par $100).

form of debt issues and the balance

on

Proceeds

construction.

shares

In November, the
company sold through MorStanley & Co., Drexel & Co. and Glore, Forgan &

gan

-

this year to finance its construction
program
About two-thirds of the amount needed will
be in the

able bidder

$4,000,000.
new

by

common

summer, together with about $20,000,000 additional common stock:.
The proceeds will be used for the
company's construction

(Minn.)

between

sufficient

program.

.

tral Republic Co.
(Inc.), Blyth & Co., Inc., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Harriman
Ripley & Co., Inc.

Power

March

,

(jointly); The First Boston Corp.; Equitable Securities
Corp.; White, Weld & Co.; Union Securities Corp.; Cen¬

Braheney, President, announced that

issue

; April 21 on authorizing an issue of $40,000,000 debentures, which may be sold this spring or

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers and
Bear, Stearns & Co.

Jan. 16, B. F.

to

year

—

$20,000,000 in 1952 and ;
Underwriters—To be determined by

$21,000,000 in 1953.

Under¬

Corp.; Kidder, Peabody & Co. and Blyth &
Co., Inc.
(jointly); Harriman Ripley & Co., Inc. (3) For common
stock—Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. and Lehman Brothers
(jointly).

Northern Indiana Public Service Co.
March 14, Indiana P. S. Commission authorized the com¬
pany to issue and sell this year $10,000,000 of first mort¬

estimated

Proceeds—To

construction program.

bidding. Probable bidders:
(1) For bonds—Halsey, Stuart & Co.
Inc.; The First Bos¬
ton Corp. and Coffin &
Burr, Inc. (jointly);-White, Weld
& Co.; Kidder,
Peabody & Co. and Blyth & Co., Inc.
(jointly). (2) For preferred stock
The First Boston

Lynch, Pierce, Fenner &

bonds, series G.

Loeb & Co., New York.

$2,500,000 of preferred stock, and toward the

determined

Beane.

gage

decide, in connection with diversification
financing is planned. Traditional

—

loans and for

Probable bidders: Morgan
Stanley & Co. and The First
Boston Corp. (jointly); Merrill

gram

stockholders will vote April
the authorized common stock from T,-

expected to be initially offered.

are

approximately

outstanding).

competitive

increasing

the

on

This would place company in a flexible
position with re¬
spect to formulation of future finance programs. Under¬

writers—To

announced

Public Service Co. of
Indiana, Inc.
March 4 it was announced stockholders
will vote April 7
on a plan to create
an issue of
800,000 shares of cumulative preferred stock
(par $25), of which between 400,000 and 800,000 shares
(probably convertible into com¬

and

stockholders

J

Inc.

Public Service Co. of New
Hampshire
March 6 it was announced
company intends,'in May or
June, 1952, to issue $4,000,000 of first
mortgage bonds

Under¬

Corp., New York.

announced

was

May 6 to increase

24

on

was

announced

stockholders will vote April

increasing the authorized

common stock from 3,000,000 to 5,000,000 shares, and the authorized indebt¬
edness from $4,000,000 to
$25,000,000. The company said
it will announce later
any plans for future financing.
Underwriters—Drexel & Co.; Merrill Lynch,
Pierce, Fen¬
ner &
Beane; and Smith, Barney & Co.
>
«
Sonoco Products Co.
'
I'.
.

,

March 21 stockholders voted to increase
authorized com¬
stock from 300,000 shares
(288,594 shares outstand¬
ing) to 1,000,000 shares in order to provide for a 2-for-l

15

mon

announced

Underwriters—The First Boston Corp. and
Blyth

stock/split

Co., Inc., New York.

April 21 and the offering first to common
an additional
150,000 shares at probably
$17.50 per share, with any unsubscribed shares
to be publicly offered.
Underwriters—R. S. Dickson &
Co.; G. H. Crawford & Co.
on

stockholders of

Northwest
Jan.

Natural

Gas

Co.

.

t i

r

7 company filed amended

connection with

mission

its

application with FPC Id
plan to build a natural gas trans¬

system

gas from

in the Pacific Northwest to^
transport
Canada to markets in
Idaho, Washington and

Oregon, with

National Supply Co.
April 2 stockholders voted

working capital instead

22

shares of

stockholders voted

the authorized

Boston

Northern States

reported company plans to issue and
an
issue of $8,000,000 first mortgage
Underwriters—To be determined by competitive
was

in November

for

to

May be determined by competitive
bidding.
Probable bidders: The First Boston
Corp.; Glore, Forgan
& Co.; Kuhn, Loeb & Co.
and Harriman
Ripley & Co..
Inc. (jointly).

Niagara Mohawk Power Corp.

Mississippi Power & Light Co.
March

(planned

writer—The First

H.),

Inc., Houston, Tex.
reported early registration is expected

stock

was

when directors

mon)

vote

ders:

on

writers

May 1 on approving a proposal to waive their pre¬
emptive rights to an issue of 300,000 additional shares of

The First Boston

vote

indebtedness

Smith, Barney & Co., New

—

repay bank loans and for

(5/14)

stockholders

in

to be used for capital expenditures.

Underwriter

Underwriter—Kuhn,

bidding. Probable bid¬
(bonds only); Kidder,
Peabody & Co.; Smith, Barney & Co.; Union Securities
Corp.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. &
Hutzler.
'
;'";V
: /'
10

stockholders will

program. No immediate

To be determined by competitive
ders: Halsey, Stuart & Co. Inc.

April

&

280,000 shares to 3,280,000 shares (1,045,500 shares
pres¬
ently outstanding). The new shares would be issued
-

it New York State Electric & Gas Corp.

The

—

Fenner

:

March 4 it
17

that

increase

an

Pressed Steel Car
Co.,

Jersey Power & Light Co.
April 8 it was reported company plans tentatively to
issue and sell $3,200,000 of bonds,
$1,000,000 of preferred
stock and

announced

was

authorizing

Traditional

New

General Public Utilities

it

on

York.

stock

common

6

$25,000,000, the funds

underwriting.

no

Corp.; Merrill Lynch, Pierce,
Beane; Paine, Webber, Jackson & Curtis.

June

ings. Underwriters—For bonds may be determined bj
competitive bidding. Probable bidders: Halsey, Stuart A
Co. Inc.; Morgan Stanley & Co. In case of

Underwriters

Boston

Philco Corp.

England Telephone & Telegraph Co.
F. A. Cosgrove, Vice-President, said a perma¬
financing program will have to be undertaken Ir
to repay about $43,000,000 short-term bank borrow,

1952

First

March 31

New

nent

Pittsburgh, Pa.
April 7 stockholders were offered the right to subscribe
or before
April 22 a total of 200,000 additional shares
of capital stock (par $20) at rate of one new share for
each three shares held. Price—$40 per share. Proceeds
on

Dec. 20,

Kentucky Utilities Co.
was reported company plans to issue and sell
in April or May $12,000,000 30-year first mortgage bonds,
series D. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
£ (jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce. Fenner & Beane (jointly).
was

and

year

(jointly); Harriman Ripley &
Offering—Expected in mid-year.
Peoples First National Bank & Trust Co.,

Co., Inc.

Beane; Harriman Rip¬
ley & Co., Inc.; The First Boston Corp.; Kuhn, Loeb &
Co.; Union Securities Corp. and Salomon Bros. & Hutzler
(jointly); Kidder, Peabody & Co. and White, Weld & Co
(jointly).

Dec. 10 it

part its 1952 $41,000,000 construction program by the
sale of $35,000,000 of new securities. Underwriters—For

this

bonds

Salomon Bros. & Hutzler

-

Co. Inc.; Lehman Brothers; Blyth & Co., Inc.; Equitable
Securities Corp. and Blair, Rollins & Co. Inc.
(jointly);
Merrill Lynch, Pierce, Fenner &

Halsey,

March 5 it

,

stock to parent (New England Electric

petitive

bonds:

Long Island Lighting Co.

England Power Co.

common

Pressprich & Co. (jointly). (2) for preferred—
Barney & Co. and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and

Smith,

authority to increase
authorized bank borrowings from $12,000,000 to $16,000,000. A major portion of this indebtedness may be
financed through issuance and sale of $7,500,000 first

(6/10)

Thursday, April 17, 1952

and R. W.

-

Jan. 11 company received from SEC

will probably bring an offering of
in the next few months, but the

shares

Procfceds^

development, etc. Properties
are located primarily in British
Columbia, Alberta, and
Montana. Underwriter—Allen & Co., New York.

(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
Bros.
&
Hutzler
and
Union Securities Corp.

.

.Weld & Co. (jointly); Kuhn, Loeb_& Cor^A.; C.< Allyn.
Co., Inc.; Equitable Securities .Corp#'^Shields & Co.

»

To be used for exploration

omon

.

der, Peabody & Co.; Union Securities Corp. and
White,

reported company plans offering of about

Boston

.

portion to be returned to Canada for use
in British Columbia. The
estimated overall cost of the
project
is
approximately $92,000,000.
Underwriter—
a

Morgan Stanley & Co., New York. Financing—Not
pected until after Provincial elections in
April.

if. Southern Colorado Power Co.
AftTiT 4 It' was announced stockholders will on
May 9
on increasing the
authorized common stock from
*'Sg&OQfr "shar£s< (no par) to 1,000,000 shares (par $7.50).
Common stock financing in 1951 was not
underwritten.
vote

ex¬

Southern Co.
Feb.

8 it' was announced
company
and sell later this year additional

Pennsylvania Electric Co.
Jan.

5

it

was

announced

that company plans to spend
about $26,000,000 for expansion in
1952, to be financed,
in part, by the sale of about
$9,000,000 first

•eeeds-^To

bidding. Probable
(1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬

investments

in

stock.

subsidiaries

in

Profur¬

Underwriters—

May be determined by competitive bidding.

mortgage
bonds, $4,500,000 of preferred stock and $4,500,000 of
stock (the latter issue to
parent, General Public
Utilities Corp). .Underwriters—For bonds and
preferred
bidders:

increase

is planning to issue
common

therance of their construction
programs.

bidders:; Lehman Brothers; Morgan Stanley

common

stock to be 'determined
by competitive

around

•

Probable
& Co.; Kid-

der," Peabody & Co. and Merrill Lynch, Pierce, Fenner
St Beane (jointly).; Blyth &
Co., Inc.; Union Securities
Gorp. and Equitable Securities Corp. (jointly); Harriman
Ripley & Co. Inc.

■Cbs&£a:fl.»*.r

vW.

m

-»

Volume

Number 5108

175

The Commercial and Financial Chronicle

.

.

.

(1639)
Southern Natural Gas Co.
March

3

be

disposed of by Electric Bond

filed with FPC a $76,000,000 expan¬
bring natural gas into its Alabama,
Georgia and Mississippi service areas.
•

March

&

Share

Co.

Under¬

may

include

Washington Gas Light Co.

Lehman Brothers.

sion

company

writers—If

to

program

Utah
Tennessee Gas

March

28

Transmission Co.

stockholders

approved

increase

an

in

competitive,

Power

stock from 600,000 shares (all issued) to
1,000,000 shares to provide for future financing. It is
planned to issue and sell in June 100,000 of tne new

struction.

preferred

writers—May

and

250,000

shares

of

Proceeds—For 1952 expansion program estimated to cost

$59,000,000. Underwriters—Stone & Webster Se¬
curities Corp. and White, Weld &
Co., New York.

Oct.

17

struct

Gas

cost

$184,989,683.

Co.

con¬

by

competitive

Co.; Lehman

(jointly);

The

Brothers

First

Boston

and

For

stock—Blyth

common

spend

expects

company

to

shares of

Merrill

before

late

stock is

common

1952,

when

anticipated.

Co.*

Lehman

Brothers

and

Barney

&

it

sale this "Fall of

which

Co

United

I*eb.

the

6

stock

Gas

On

that

shares of

of

outstanding)

total

sale

stock,

is

this

ing

in the

ease

professes
the

y" •

#

an

even

issue

handled

be

can

syndicate

Jstudents

not

to put their

or,

to

of

this

;>

includes

Columbia

perused
and

yet

as

finger

the
the

statements for

Gas

firms

143

capital.

...

■

_;,T^

on

a

sat-

a

100.1799

ra^e

been

weekly

daily

wag

^he

for

1Q1 8g
,

Qn

.

bank

clue.

for

3%%

a

interest

offered

runners-up
a

coupon.

reoffering

ield of 332%

Treasury>peared

corporations, in such flambouyant
;

at

Association
17th

:■7

~

y

For

Treasury
market,
it
is
noted, is the only segment of the
that

be

can

held

is

if

for

a

Potential

slow.

point

out, however,

that

the banks are not pinched by big
demand
for
loans, in fact that
such

demand

to

gun
a

growing

savings
up

to have be-

appears

taper.

Pension

source

banks

funds

market,

of demand

have

due

building,

on

been

to

has

and

piling

restrictions

been

under

wraps.

So

experts
answer,

this combination of circumstances
will have to be accepted as the

1.

explanation.

the
This

appears

an

was

celerity

to

be

offering is set

ideas

of

convention

Galveston,

will

Tex.,

be

1

May

Headquarters will

proven

which

Manufacturing Co.

opened Tuesday. Again the list is
liberally studded with equities,
The

next big debt issue will be

$30,000,000
of

tentatively
on

object
to meet

buyers,

by the

the

group

on

first

which

slated

and

also

to

week

in

be

for each

scheduled

are

Co.

increased

morning, with afternoons
May 2 there will be a
for

tournament

Cup

the

the

at

Country Club,

A.

W.

Galveston

or

Thursday

at

noon.

there

be

a

will

inventories

resulting

repayment
edness
sonal

The
now

short-term

of

incurred

opened

re¬

mg xvctisiuii,

The

sea¬

inventory
commitments.
principal capital additions
planned by the company,

a

Chicago

lateral trust bonds, 30-years
on

tire

at

On

are

Spokane, Wash.,
La., and a

solvent

annually

The estimated

expenditure

is

the

net

ended

Sept.

the

ma-

mar-

latter

operation, exempt
competitive
bidding,
will

$62,000,000

pay

off almost

of

existing debt and
augment its working capital, Pre-

liminary ' soundings
favorablp

favor5

able to report books closed.

wise.

unforeseen

repGDtton

r

indicate
barring

a

anv

developments market¬

and

The Board of Directors has de¬
clared

a

(50£)

ag¬

a

dividend of

fifty cents
en
the Capital
Company, payable

share

Stock of the

approxi¬
sales

April 30,

30,

for

1952,
at

record

ness

1951,

A barbeque around the
$9,284,794. Ralston Purina Co. is
pool is scheduled for
the leading producer in the United
Thursday night, to be followed by
dancing.
Friday a formal dinner States of commercial mixed ani¬

dance, preceded by a cocktail
party, will be held in the ballroom
and

mal

and

markets

stockholders

to

the

close

of busi¬

April 21, 1952.
L. G.

CLARK, Treasurer

April 10, 1952

poultry
on

which

it

nation-wide basis

a

as

feeds

Union Carbide
AND CARDON CORPORATION

of the Galvez.

"Purina

Registration fee is $50 for
$25

for women,

which

except

expenses

hotel,

Chows."

all

breakfast

also

manufactures

certain

breakfast

company

Ry-Krisp

and

cereals, includ-

the

of
are

Jesse

R.

Convention
MEETING

J. W.

Lain, Chair¬
Phillips, Jr., J. R.

NORFOLK

Houston;
(Registrations), Under¬

Ball

wood.

Neuhaus

&

Co.,

AND

Bayless; J. O. Dix. Merrill

Lynch,

Pierce.

Fenner

&

Beane,

Galveston; E. Wilshusen, and Jack
Dorst.

dividend

Annual

Virginia,

RAILWAY

Meeting

ol

Stockholders

of

H. HANNAN,
Secretary

Nor¬

folk
and
Western Railway
Company will bs
held, pursuant to the By-laws, at the principal
office of the Company in Roanoke, Virginia,
on Thursday,
May 8, 1952, at 10 o'clock A. M.,

*******

to

elect foul* Directors for a term of three years.
Stockholders of record at, the close of business
April 18, 1952, will be entitled to vote at such

of

the1 Board

of
W.

ftvatmiitMiiMi

Directors,
COX, Secretary.

SOUTHERN

1

NATURAL

Allied Chemical &
61

Peabody

&

and

Co.

Dye Corporation

head

an

investment

Co.

jointly

group

which

(April 17) $15,-

000,000 Ralston Purina

Co.

3Vs%

sinking fund debentures due April

To

Broadway, New York 6, N. Y.

m

m

priced
to

The

1977.
at

100.43

debentures
to

yield

maturity.; Proceeds

are

3.10%

from

the

sale

of

available

the
for

debentures

general

will

be

corporate

*

purposes

including

the

carrying

A dividend of

The Animal Meeting of the Stockholders of
Chemical & Dye Corporation will be
held at the principal office of the
Corporation,

per

61

Broadway, Manhattan Borough, New
City, at 1 P.M. (Daylight Saving Time),
Monday, April 28, 1952, for the purpose
electing directors for the ensuing year and

York
on

for the transaction of such other business
may

properly

come

not

of

the

to

as

this meeting. The transfer books will
be closed.

W.

C.

pany,
to
at

June 2, 1952.

stockholders
the

of

record

close of business

on

I

of

will be entitled

of

payable June 13,1952

■

:

8

close

Stock

Common

Southern Natural Gas Com-

as

at

Dated, March 20, 1952.

the

5

■

before the meeting.

Stockholders of record
business March 20, 1952,

62V% cents
share has been declared

on

•

Allied

of

15,

Common Stock Dividend No. 53

■

the Stockholders:

No.

*
*. m

Birmingham, Alabama

NOTICE OF ANNUAL MEETING

&

v

GAS

COMPANY

Debentures Offered
Sachs

cents

KENNETH

ANNUAL

Ralston Purina 31/s%
Kidder,

Fifty

the close of business May 2, 1952.

April

7, 1952.
MEETING
STOCKHOLDERS

OF

OF

The

meeting.
By order

Goldman,

of

per

has been declared, payable June 2,
1952 to stockholders of record at

NOTICES

WLSTEP.N

COMPANY

Roanoke,
NOTICE

Houston;

Edward Randall III; R. H. Baker:
L.

cash

share on the outstanding
capital stock of this Corporation

Phillios Investment Co.,
Tom

A

(50^)

transportation.

man:

J.

The

men,

covers

vote

ePtipn barring any

1972

Galvez

is offering today

.

re¬

TECHNICOLOR, Inc.

of

company's

year

through

to

amount

DIVIDEND NOTICES

mately $4,000,000.
The

principal

plants

gregate amount required for such

capital

1958

entitled to

are

sufficient

1976.

Shrevesoybean

and
new

fund

$1,000,000 annually 1973 through

processing plant at Kan¬

City, Mo.

sas

feed

new

port,

Friday

stag lunch at the

year,

w neai cmex ana race

$400,000

construction of which is expected
be started during the current

fiscal

Morgan

Galvez.

&

-

permit the road to

as

Previous offer (to

debentures

sinking

Country Club, wives amounted to $342,802,522 and net
having lunch at the income after taxes amounted to

attending

Western Indiana. RR.'s $65,000,000
of new general mortgage and colturity will be Placed

stock

shares

the Chex.

indebt¬

finance

to

L.

are

and

from

plant and equipment re¬
placements and additions and the

On

mort-

bids

be

thereafter

April 17

common

additional .163,344

an

April 29.

handling Service Pipe Line Co.'s
$90,000,000 3.20% debentures was




Electric

30-year,

bonds

gage

Union

of

Missouri

property

to

Business meetings

Members

in

Co.'s $12,000,000 of first mortgage
bonds on which bids will be

from

no

up

prospective

definitely
with

in
2.

Committee

offerings

new

sight for the ensuing week are
small, topped by Alabama Power

The

Size

the

of

keh

Made to Order

when

in

fortnight

a

Two Big Issues Loom

A

perhaps, until the
up
with the real

come

issues

new

nearly

&

April 15

from 4,200,000

announced stockholders will vote

prices,

the Galvez Hotel.

and

Most

.

are

deposits. Meanwhile the mort-

gage

few

are

for

now.

cur-

by way of "window-dressing" for
prospective government financing,
Some

there

prospect

that direction is '

strength in

was

growth of the business and higher

'1

manipulated

"legally." The wonder
rent

$10)

approving issuance of 150,000 shares of

on

ceivables

its

that

announces

annual

and

the situation ahead,

over

Bros.

of

Galveston

100.929

initial inquiry ap_

iittle

a

looking

The

markets

Salomon

•nhA*^0'r)Ii

buyers, so the yarn goes, had been
They do not yet understand how calculating a 3.35 % yield,
the market has been able to ward :
It was expected, however, that
off the effect of the heavy mid- the
recalcitrants' would
come
March tax drain, .especially
on
around without much delay upon
manner.

Corp.;

GALVESTON, Tex.—The Texas
Group of the Investment Bankers

Snyder

Offering

.....

,

.

basic

isfactory explanation though they
have

(par

(about 4,123,000 outstanding) to 7,500,000 shares.

March 11 it

bid¬

stock

common

Yale & Towne

Corp.

competitive

Group of IBA
Gives Meeting Plans

golf

...

reports

by

•

.

able

determined

Securities

bathing either in
the Galvez pool or in the surf.
Treasury seciitffcA*:
for $60,000,000 of Columbia Gas
7 Lunch
will be served in the
i-..'" v •.
Systems Inc., 25-year debentures Balinese Room of the Galvez on

the

have

Webster

Texas

free.

put it another way, the persistent

situation

Underwriters—

announced stockholders will vote

was

increasing

Stanley & Co., New York.

bank loans with the balance
fob construction, other capital ex-

.

be--.

sustained

money market,

strength;'in

Feb. 12 it

directors have

stockholders in June, 1951) was underwritten
by

penditures and working

of the financial

over

be

&

fall.

~

Westinghouse Air Brake Co.

(first to stockholders).

the

Union Securities

"

;

in

stock

The First Trust Co. of Linclon. Neb.

of

new

Kuhn, Loeb & Co. and Wertheim & Co. (jointly).

with most of the big names among

still

stock

common

expected

to

Inc.;

7them. Of the total $46,000,000 will

wilderment

1952,

Hutzler; Stone & Webster Securities Corp.; White, Weld

.

course,

size

The

construction. Dealer-

new

deemed advisable for other purposes.

Co.

readily enough when the sponsor¬

part

in

through

reported

was

probably Stone

bonds,

institutional

of
.

Then, of

goodly

it

15

raised

common

& Co.;

must

buyers.
of

A

be

may

needed for

for

common

ideas

portfolio

White,

and

Light & Telephone Co., Inc.

ding, with the following probable bidders: Halsey, Stuart

3,165,781

27%

bonds:

(jointly); (2) for bonds only: Halsey,

&

ruled

or

and

Co.

(jointly); W. C. Langley & Co.

funds

as

shares

bond

The issue, carrying a substantial
sinking fund, was priced at par
to
yield the buyer 3.20%. Pre¬
sumably it fitted in well with

community

Feb.

construction

new

$30,000,000

on

A

Corp., New York.

(approximately

stock

&

Co. Inc.

Western

495,000 shares of

issuance and

Corp.

SEC

for

more

or

about

financing.

For

Securities

For

Managers—Harris, Hall & Co. (Inc.), Chicago, 111., and

announced that company expects to spend

was

$40,000,000

Underwriters—Probably White, Weld & Co. and Stone
Webster

(1)

Barney

are

For

&

•

bidders:

Smith,

issued

Dec. 12 it

issue of convertible preferred stock.

an

Co.

Stuart &

Lehman

approved plans to issue and sell in June approximately

reported company plans

was

&

Inc.;

500,000 shares, the additional shares to be

'

14

(jointly);

Co.,

con¬

from 400,000 to

Transcontinental Gas Pipe Line Corp.
March

Beane

Virginia Electric & Power Co.

400,000

Probable bidders:

Smith,

&

proposed

probably in August, and of bonds in September.

Lynch, Pierce, Fenner & Beane; W. C. Langley

(jointly).

Fenner

of

care

April 11 stockholders increased authorized

financing

about

Pierce,

take

Brothers; The First Boston Corp. Registration—Of stock,

approximately $46,500,000 for expansion in 1952

contemplated

&

& Co. (jointly); Kidder, Peabody & Co. and Merrill

Lynch,

&

First Boston Corp.

Smith, Bar¬

•

to 1955, and it has been stated that no further
is

(jointly); Union Securities Corp. and

to

Permanent financing expected later

Probable

year.

Weld

Co., Inc., W. C. Langley & Co. and Glore, Forgan &

Co.

funds

contemporarily, in part, the company's

struction program.
this

&

Underwriter—Kidder, Pea-

reported that the

was

to finance

and

Blyth

(2)

Proceeds—Together with#

other

authority to make
borrowings of $40,000,000, the proceeds to be used

bank

Bear,

Corp.

and

Jan. 9 company applied to the SEC
for

(1) For bonds—Halsey, Stuart & Co.
&

loans

Washington Water Power Co.

bidding.

ney

it

bank

$6,000,000 expansion program.

financing in the fall. Under¬

Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;

Toledo Edison Co.
20

(there are presently out¬
standing 734,400 shares). Underwriters—'The First
Bos¬
ton Corp. and
Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders.

to

up

Kidder, Peabody & Co.

The project is esti¬

body & Co., New York.

Nov.

12 reported that
company is considering plans to
raise about $4,500,000 from
the sale of additional com¬
mon stock to its
stockholders

Blyth & Co., Inc. (jointly); Union Securities Corp. and

applied to FPC for authority to con¬
1,350-mile natural gas transmission line extend¬

to

&

Jan.

the bank loans from

repay

determined

White, Weld

Stearns

Co., Houston, Tex.

ing from Texas into West Virginia.
mated

Inc.;

company

a

be

borrow

the money for new

use

intended to

Probable bidders:

about

Texas-Ohio

is

to

company

the proceeds of permanent

stock.

common

It

bidders

Light Co.

authorized

$10,000,000 from banks and

author¬

ized preferred

shares

&

SEC

7

probable

47

KING, Secretary

J
:

|

,

H.D. McHENRY.

j

Secretary,

Dated: April 17, 1952.

5

IS

The Commercial and Financial Chronicle

(1640)

Thursday, April 17, 1952

;

;

.

••

This

BUSINESS BUZZ

been

borne

inflation

bang,

on.».p'
VAA)
Behind-the-Scene Interpretations
from the Nation's

And You

Capital

EPT

on

year

drag

going to

if Robert A.

even

Taft should be President and want

TUMT^

this tax.

-ft

coflfOrtrtTiow

next

not
the
with a

has

unless

and

Congress is

its feet

*

simply

out,

hits

fJ

«

premise

At

least

of

one

lat¬

the

ter prospects is not forecast here.
*

*

*

One of the little secrets of Cap¬
itol Hill is that a most important
factor which made it

WASHINGTON, D. C.

—

Most

Industry observers here, correctly
or

incorrectly, have

to the

come

:HMa£lusion that the damage which

One of the foremost students «*f
labor relations in this capital
made the prediction that so long
as the present Wage Stabilization

the
practically

prevent, if possible, a complete
apepeat performance of this kind
a
situation as each new big

mittee to achieve
lion

make up its mind (if its case
comes before WSB) not only that

it will be forced by government
to pay the highest wage boost the
WSB can justify recommending,

Harry
steel

done to

has

Truman

industry

cannot

undone.

<301

union

forth with its

comes

wage demands.

When

Wage
as
"fair

supported
the
recommendation

and

reasonable," so say these experi¬
enced observers, he all but ir¬
retrievably

shop

closed the door to a

enactment

the

members

where
be

as

this

Schoeppel

of

any

Committee

of

without

made

cuts

could

seriously

im¬

the objectives

*

Andrew

and

the

of

volume

of

of the Committee.

by

Ohio,

of

Bricker

thorough,
given

was

the defense program. Or, at least,
that is the contention of members

legisla¬

the

of

study

by
expert staff of the House Appro¬
priations Committee as to show

Senators
Everett Dirksen of Illinois, John
sponsored

$4 bil¬

appropria¬
supported
by the

In other words, such a

Hence the drive will be made to

tion

cut of

a

military

cut

pairing

obtain

in

continuous

,.

publicly
Board's

Truman

union

the

take

to

plus

House—was staff work.

well.

.

Harry

but

possible for
Appropriations Com¬

House

tions—a

Board arrangement exists, lndustry as a matter of unemotional,
cold-blooded reality, had better

Kence, they say, their friends
in Congress should
attempt to

the

It is

This is a
amendment to the De¬
of 'Kansas.

cent

*

*

expected that with its

re¬

actions, the Federal Reserve-

>«Umpromise by Phil Murray, the

proposed

ahead of the steel workers union.

fense Production Act which, when

will "stand pat" on Regulation W„
control over instalment credit,

cent below

presented in final form, will ab¬

easing it

the

solutely bar the Wage Board from

M Murray
4*

figure

gave

the

in

a

of

President

United States said

was

"fair and

reasonable," then Murray
be

to

hot

with

water

would

his

own

attempting to settle
require

an

of

stead

Hence, say these observers, you
<can put it
in your hat that the
asteel workers will get "at least"

sisting

fchey say, this is certain.

labor dis¬

the

pute. Just incidentally, it will also

rivafci in the union.

everything recommended by the
Wage Stabilization Board, including the union shop. Eventually,

any

tripartite

members,

one-third

and

bers,

board

one-third

con¬

"p

exemption

b 1 i c"

u

sure

they

are

on

the

side

two shares in

of

this corporation they TOLD me
PART OWNER!"

the

I was a

lie

would

board

to serve until

be

not

allowed

they had been con-

firmed by the Senate. The present
board members are not subject to

ticular Senate subcommittee con-

Cnariey McCarthy set-up.

more

three
Senators
amendment are
Republicans,
it
has
wide
bipartisan support, and an excellent
the

this

chance of final adoption.
V
*
*
While the CIO

;

to

appears

be

winning the great battle for a
huge wage increase so far, the
CIO, on the other hand, has lost
a

minor

political engagement.

CIO

The

to

exerted

heavy

pres-

biU

Murray

government

industrial safety by the

indirect

procedure

cumbersome

and

grants-in-

Federal

of

to

the gift of Americans

The

main

oil

the

of

drive

union, another CIO out-

fit, also currently before the Wage
Stabilization Board, is to try to
persuade WSB to demand that the
oil industry negotiate nation-wide
contracts with the union. At presone

major producer has a

nation-wide labor contract,
It's

a

long

way

off but the con¬

servatives in Congress have pretty
well come to the conclusion that
IF
tax

Humphrey's bill was really a
beauty. It would set up a Federal

of relief amendments to that tax.

Prevention

Accident

Bureau

in

the Labor

Department which not
only would draw up codes of
regulation of industrial safety, but
ing

to

Tri-State Oil & Refining

Western Oil Fields

with

"well-

workers'

could

factories at will and

inter¬

Federal

fere in any way

beyond

expiration date
they will tie plenty

its

Congress, on the advice of busi¬
spokesmen, put a life of
30, 1953, as previously re¬

ness

June

is

It

the

home modernization and repair

loan without some down payment.
The raising of the loans exempt

from

regulation

will

allow

the

sale of wringer washers and small

appliances without regulation.

the cards.

is

that

if

The Reserve's position

Regulation W

is

to

be

further eased, it might as well be

abolished.

it

If

is

thus

further

eased, it will be Congress and not

the Board which does it.

(This column is intended

to re«*

pretation from the nation's CapitaS
and may or may not

the "Chronicle's"

coincide with

own

views.)

TRADING

MARKETS

Boston Herald Traveler

A. S. Campbell Pfd. & Com.
Caribe Stores

Eastern Racing Ass'n

action, the tax

Gorton

way

off. Another

goes

of explaining the situation is

that if the Administration of next

wants

year

EPT

it

continued,

must do

well-being of workmen.

Pew

Fisheries

National Company
Polaroid Co. Pfd.

tives to vote reluctantly last year

was

too fast in

a

little too much and

the

revolution

for the

The

a

selling job

theory

suaded any
for

EPT

on

which

finally

number of

was

that

Congress.

the

defense

mobilization program would create

Labor Department, which testified

such

that these be skimmed off to help

were

completed, and the

par-

high

profits

as

to

Riverside Cement "B"

per¬

conserva¬

against it. Although the hearings

Woodward Oil

regulation.

lated, on EPT. This means that
unless Congress takes affirmative

they saw fit with
production operations they judged
to be detrimental to the safety or
This

'

do

inspectors

being."

and

they extend the excess profits

June 30, 1953,

roam

Sioux Oil

of

fleet the "behind the scene" inter**-

ate.

would investigate everything hav¬

Sierra Petroleum

on

ing is said definitely not to be ii*

*

for Democratic Action to the Sen¬

Oklahoma Oil

taken

volume

were

the

On the other hand, further eas¬
*

*

persuade the

partment

Minnesota,

Morton Oil

that

Reserve's belief that few persons,
even
without regulation, can get

a|d>

ent only

Labor De¬
back the "accident
prevention"
bill
sponsored
by
Senator
Hubert
Humphrey
of
sure

the

Federal

the

over

workers'

*

ment

a

is

dead

j^ye
take

Although

exception of

one

pass.

Als0

would militate against a complete

sponsonng

but

"liberals," the hill is not expected
to

confirmation

Senate

of

ment

with

sists

Senate confirmation. The require-

Kutz Canon Oil & Gas

steps

administrative burden of enforce¬

These members of the all-pub-*

Like Oil Business I

premise

instalment credit they would per¬
mit was small compared to the

*he labor angels.

There's No Business

pay¬

and raising the
credit subject to

for

Both these

"Oh, stop that mumbling, Mr. Van Twit—when I bought

members, all carefully selected to
be

down

modernization

regulation from $50 to $100.

mem¬

one-third

of

home

for

removing

were

and repair loans,

industry
labor

further.

actions

requirement

ments

"all public" board, in¬

a

of

no

These

require

Seneca Falls Machine
LERNER & CO.
Investment

10 Post Office

Securities

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

prevent inflation.

BS 69

Wyoming Oil
Active trading markets
and many

on

the above issues

others.

Allied Electric

FIRM TRADING MARKETS

FOREIGN

SECURITIES

w

Products

m

Stanley Pelz & Co.

Common

HARL MARKS & P.O. INC.
FOREIGN SECURITIES SPECIALISTS

and

Preferred

•

INCORPORATED

52

BROADWAY, NEW YORK 4, N. Y.

BOwfiog Green 9-5577




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Hill, Thompson & Co., Inc.

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Teletype NY 1-3184

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