Full text of Commercial and Financial Chronicle : April 21, 1955, Vol. 181, No. 5422

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»^frY
OF
Mich.GAN

ESTABLISHED 1S39

APR 22 1955

Reg. U. 8. Pat. Office

New York

Number 5422

181

Volume

EDITORIAL

The Stock Market
By HON. J. W.

We See It

It used to be said of

was as

certain

misunderstood, and so

of ours. A

pregnant with danger to this country

"opposition,"

the

Senator

notably

number

Douglas,

and
charges and slogans with which to dis¬
said to be collecting words

are

epithets,

the work of the

credit

Eisenhower Administra¬
I feel I

best bring the

that the "common man"
shabbily with for the benefit of a

Bankers Trust Company,

presenting a digest of factors in the business re¬
Dr. Reierson looks for more than a casual decline
in the production rate of automobiles and an easing in
the rate of residential building during the second half

that

the inevitable

vent these

downturn.

been not

continue. He has, however,
successful in cur¬

collections
proportionate to expenditures approved and
tailing outlays or in advocating tax
by

page

continue through

for

New

speech by Senator Fulbright before
York, New York City, April 18, 1955.

OVER-THE-COUNTER

ISSUE

The

Club

which cash dividends have been

include

Municipal

of INDIA. LIMITED
Bankers

Office:

Head

London, E.
telephone:

HAnover 2-3700

and

Public Housing

RESEARCH STUDY

Bishopsgate,
C. 2.

(London)

End

West

State, Municipal

Agency

COPIES OF OUR NEW

Kenya Colony and Uganda

Securities

feature

Government id

the

Dr.

iiSirik:

NATIONAL BANK
''

Slate and

that

page

K 'V

U. S. Government, ;

Consumer Credit

Reierson at the National
Conference, Chapel Hill, N. C., April 3, 1955.
address

1948-49.

Economic output was $365
1953 and reached a peak rate

—

Continued
*An

Reierson

billion in the second quarter of

completely revised list of
paid uninterruptedly from 5 to 170 years.

the Over-The-Counter Market, the special material to

unlisted stocks

billion in the record year

just short of $370

WEEK—The "Chronicle" of April 28 will

suggest

activity

page

Economic

indicators of

National Product

Gross

Recovery

aggregate
that the
economy has already reached, or al¬
most reached, the all-time records
set at the peak of the boom in 1953.
The rate of the present upturn
is
Roy L.
comparable to those that followed
the moderate business declines
of 1927 and

economic

de¬

market

stock

over

concern

1955 and into 1956.

Business

The

Statistical

any

Concern

Continued
*A

level of business

two points of
contrast. One lay within the stock market itself. From
September 1953 to November 1954, the level of stock

Congress

Continued

Fulbright

for

sug¬

is part of ; a
and that a
activity is likely to

swing,

this year, the grounds

velopments turned

itself. In any
event, he appears to be preparing again to make
a sort of last ditch stand against this recurrent
initiated

sometimes

Grounds

In January of

however,

evidence,

economic re¬
broad cyclical
generally high

covery

grounds for concern.

than moderately

upturn,

gests that the current

reasonable

were

current

available

developments

there

the strength of

especially as
some
important industries are ex¬
pected to ease later in the year. The

Chairman to direct
attention

questions have been raised as to

Some

the

place

trends

which

about

penditures and unavoidable debt, and that he
has consistently opposed tax reductions while

the 1953-54

from the bottom of

under way since August 1954, and
far has been vigorous and widespread.

the movement so

all matters that are a proper
of the Committee.
It was

economic

the labor
international outlook.

major imponderables: (1)

The business recovery

of Senator Maybank,

Committee's

the

Lists

situation; and (2) the

recent study of the stock

also my duty as

connection between Treasury ex¬

staggering deficits

concern

of the

likely to provide sufficient support to pre¬
adjustments from cumulating into a general

economy are

It was thus imperative
I not only inform myself more

fully

taking the lead in trying to block any move that
would bring a permanent increase in it. To this
Senator's credit be it said that he has recognized

Holds, however, other sectors

of the current year.

Congress.

ernment is

covery,

South Carolina,
as Chairman
and Currency Com¬
mittee for the current session of the

doubt that the old battle
debt limit of the Federal Gov¬
to be renewed, with Senator Byrd

soon

New York

After

the Banking

about the upper

of study¬

first with its background.

I succeeded to his

there be any

can

REIERSON*

By ROY L.

fine Senator from

selected and favored few.
Nor

Copy

letdown has now been

begin with a personal reference.
Following the untimely death

made to have it appear

has been dealt

can

market into focus if I deal

tem of Federal taxation.

Vice-President and Economist

lag.

economy

in extensively redrafting our sys¬
An effort will plainly be

tion last year

Committee

emphasizing possible ill ef¬
fects of speculative "bacilli" on the general economy,
and calling on market participants and government lead¬
ers to break "hypnotic spell" from stock rise.
Drawing
distinction between the price level of stocks and the rate
of advance, he cites market accompaniments of "highrunning speculative fever." Describing current "shallow"
optimism as uncomfortably reminiscent of attitude pre¬
ceding 1929 crash, Senator Fulbright states study has
focused his attention on present elements of danger in
excessive mortgage debt, instalment debt, and farm

this:
There is nothing so certain as "debt and taxes."
It might be added that there is also nothing so
confusing,

Cents

ing market developments;

aphorism might well run something like

FULBRIGHT*

Fulbright stresses timely importance

Chairman

"death

Business Prospects in
The Coming Months

Inquiry

Chairman, Senate Banking and Currency

strictly modern counterpart of this

and taxes." A

Price

1955

Senator from Arkansas

States

United

event about which no

doubt could exist that it

confused,

7, N. Y., Thursday, April 21,

"ATOMIC

Branch:

Bonds and Notes

ENERGY

REVIEW"

13, St. James's Square, S. W. 1.
In India, Pakistan, Ceylon,

Branches

CHEMICAL
CORN

EXCHANGE

Uganda, Zanzibar, and Somaliland

Reserve

Protectorate..

Authorized Capital

Paid-Up

BANK

ARE NOW

Burma, Aden, Kenya, Tanganyika,

£4,562,500

Capital

£2,851,562
1

Fund

THE FIRST NATIONAL CITY BANK

.—£3,104,687
.

The Bank conducts every description of

bond

department

30 BROAD

ST., N.Y

banking

and

Trusteeships
also

exchange business.
and Executorships
undertaken

OF NEW YORK

BOND

DEPARTMENT
THE

HARRIS, UPHAM & C°
Members New York Stock

14 WALL

Teletype:^ NY 1-708

Bond Dept.

AVAILABLE

REQUEST

Exchange

Chase Manhattan

STREET, NEW YORK 5

BANK

34 offices from coast to coast

Imperial Bank of Canada
Net

T?.
irs
ri
TO

REMEMBER

gmdkmAt

Commission

American

Stock

Warrants

Orders

Iowa Southern
The Bell

Executed On

Canadian Exchanges At

Rights expiring April 29, 1955

All

Regular Rates

We offer to buy the

NEW

YORK 4, N. Y.

DIRECT

WIRES TO

Dominion Securities

MONTREAL AND TORONTO

Goodbody
MEMBERS

FIRST

geuthwtdt

COMPANY

Dallas

BRIDGEPORT

•

PERTH AMBOY

COMMON

above Warrants and

Rights at the current market.

Grpoeatioti

Preferred and
Common Stocks

Utilities Co.

Analysis

upon

request

CANADIAN DEPARTMENT

Exchange

BROADWAY

Telephone

Company of Canada

Teletype NY 1-2270

Industrial Bonds,

expiring May 3, 1955

and Brokers

SECURITIES

Members

Exchange

Maintained

CANADIAN

T* L*Watson &Co.

New York Stock

Markets

Dealers, Banks

THE

Active

115

NEW YORK

BROADWAY

NEW

YORK

Co.

STOCK EXCHANGE

1 NORTH LA SALLE ST.

CHICAGO

Associate Member American

Stock Exchange

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

IRA HAUPT & CO.
Members
and

York Stock Exchange
Principal Exchanges

New

other

111

Broadway, N. Y. 6

WOrth 4-6000
Boston

Teletype NY 1-2708

Telephone:

Enterprise 1820

The Commercial and Financial Chronicle

Thursday, April 21, 1955

..,

(1826)

The

Banks, Brokers, Dealers

For

Bird & Son'"'

Bank

Chesapeake Industries *

participate and give their

& Equipment

Members
Menibrrs

—

graphical

New York Hanseatic

and

Corporation
Associate

Broadway,

-i: Teletype NY 1 -40

WOrth 4-2300

PHILADELPHIA

BOSTON
Direct

Boston,

Private

Wires

diversification

Houston, Los Angeles, Philadelphia,
Portland. Me.. Providence, San Francisco

Rights & Scrip
Since 1917'

going

energy field and
production of an

into

atomic

order

energy

Wright,

Wm.

also

Sctii.l

and

state

arts,

furniture

Members
New

York

American

120

Stock

Exchange
Exchange

Stock

BROADWAY, NEW YORK 5
TEL. REctor 2-7815

duction

and defense .pro- the West Coast.
reliance

increasing

into

Further

for
for

food

tne

Bassett Furniture Industries

f|ecj

fiscal

Commonwealth Natural Gas '
Dan

River

Mills

Life Insurance Co. of Va.

STRADER,TAYLOR & CO., Inc.
TWX LY 77

31,

Dec.

ended

the

1954;

electronic sales amounted to $30,-

of that year's total sales. For the
three
quarters, total sales

first

$54,686,000 against $62,-

473,000 for all of fiscal 1954.
These

for

LAMBORN & CO., Inc.
9 9

WALL

STREET

NEW YORK 5, N.

kits

Refined

—

Liquid

increased

since

trend is continuing.

these

kits,

has

advantage

taken

enthusiasms

new

struments.
In

addition

their

'
use

fessionals, such as research laboratories, TV and radio repairmen,
trade

field

netic

;

the

Daystrom

its

own

Exchange

25 Broad St., New York 4, N. Y,
Tele: NY 1-3222

New

York

Electric

electronic

research

sec¬

substantial engineer¬
llllf

the

its

should

earnings. -Per share net

reported

fifteen

and

year

This

record

ferred>

Food

Iii

II,

N. Y. Cotton

Chicago

Food

Machinery
been

•

Detroit

Beach

Miami

N. Y.

4,
•

Pittsburgh

Coral

•

Gables

Beverly Hi lis, Cat.
Geneva,
Switzerland
Amsterdam,
Holland

Hollywood,

Fla.

•

BOUGHT

SOLD

—

QUOTED

L. A. DARLING CO.
COMMON

STOCK

M0RELAND 8 GO.
Midwest
Detroit

1051

Stock Exchange
Stock

Exchange

Penobscot Building

DETROIT 26, MICH.
Woodward

issue

2-3855

inclusion

little

City,

Office—Bay

Mich.

increasing
Its

broad

quality

the

it
a-

W2r

Chemical

continued

and

make

.return

World

lends

growth prospects

company

Branch

common

stature.

diversification
the

since

years

has

investment
*

specialized

reasonable

candidate

wide

variety

saving^

for

accounts, from conservative insti¬

than $8
million in anmore

tutional
man.

Stock

aggressive 1 business¬

At current levels (New York

Exchange)

51, it should
while

operation
14

Exchange Bldg.

YORK

NEW

the

common

Machinery &
Chemical was
still a rather.

3,040,471

and

shares.

Corporation,
In 1939 Food

doing

exchanges

tion consists of $48.3 million debt,
$9f..milli°"
preferred, $6.9
million 3 /4 % convertible pre-

sales growth of

least

the

Machinery

other

eye-catching
certainly invites examination,
is

Inc.

New Orleans Cotton Exchange

around $4.00

Dlvldenc*s are currently at a $2.00

rate and have been paid conFood Machinery & Chemical Corporation secutively since 1935. Capitaliza2,600%

Trade

Members

has grown,

company

Exchange

Exchange,

Board

u|e

prove

'slightly
to be

above
worth¬

investment.

Sidney L. Schwartz

which are manufacturKenneth Elgin Opens
the mails or by ing divisions and 11 subsidiary
(Special to The Financial Chronicle)
express, and the moderately small organizations embracing 61
proPASADENA, Calif. — Kenneth
tape recorders mentioned above duction units. Total revenues in
are not the only production of the
1954
approached
$230
million, Elgin, Inc. has been formed with
company. At its Daystrom InstruHundreds of products are sold or offices at 432 North Lake Avenue
ment Division in Archbald, Pa.,
leased, ranging from household to engage in a securities business,
the company also manufactures,
insect spray to heavy industrial Officers are Kenneth E. Elgin,
among other products, an 11-rton
chemicals, from grapefruit pol- President, Charles F. Edwards,
Mark
56
radar
gunfire control ishers to huge castings. Thus, in Vice - President,
and Elizabeth
system for the Navy, capable of buying Food Machinery & Chem- Lockwood, Secretary-Treasurer.
"Heathkits,"

Chicago

management's
ability
these objectives.

Exchange

1956

™

Pr°duct. Experience testifies as to
the

Calif.

Stock
...

having

Small

O/tflmheumt & 'ftp.

San Francisco,

recorders, and film,, nual sales. Towire and special application re- day it is a
corders. This subsidiary also has
nationwide

sent

Phone: Dl 4-4460

and

A1+UCtf

have

Exchange

Cotton

Commodity

ex-

into

w«ll

™

same time a

Senior Partner, Sutro & Co.

Member

York

New

achieve

tape

tion,

Preferred

Members New York Stock

schools

Corp., which produces the "Crestwood" line of high fidelity mag-

Indian Head
Mills

technical

forth. Also in the high fidelity

Trading Markets

and

can

integrated into the parent. At the

Stock

American

ing staff is constantly broadening
the
line,
and
improving
the

Chemical

by
amateur
enthusiasts, "Heathkit"
test instruments are used by pro-

DIgby 4-2727

Members
York

New

food Machinery & Chemical
obtained its rapid growth
J3.0*" fi'om within and by acqu-Sition. The plan has been to search
logical activities that can be

Uie

1856

H. Hentz & Co.

1949, and

sweeping
the
country,
the do-it-yourself
urge and the desire for radio, high
fidelity and other electronic intwo

—

500%

company

vehicles

nhibious

SIDNEY L. SCHWARTZ

$7,500,000.

pioneering

its

Heath

about

Established

^«J"rt«"^parrvt> nrndnrtlnn^nf

Properly coordinated these should
give Daystrom a strong position in
an industry that depends heavily
on research and development.

instruments,

have

sales

than

upward

Exports—I mports—Futures

sales

with

this

Raw

electronic

for

P'°

presently quoted at about 29.

SUGAR

packaging piants.

pected to continue to share in the
defense
program.
Current con-

The stock is traded on the New
York
Stock
Exchange
and
is

Heath's

complete

customers

°™1?'5CS1SWWI^

war,''the

like its securities,

sition, Heath Company, world's
largest producer of do-it-yourself

Bankers

Investment

«fc

Broadway,N.Y. 6 COrtlandt 7-5680

impressive

do not include
those of Daystrom's newest acquifigures

Ltd.
'

1897

Office Tokyo—70 Branches

Brokers

111

^ eJ* experience on in the cold
let-up goveinment

of the

one

Established
Home

factors in the future of Daystrom,

and

Securities Co.,

Machinery rentals is a fairly
reCent activity of Food Machinery

most

Yamaichi

line is well diversiFood
Machinery
&
engineers are able to

and

processing and

major reasons I
lies in. the re939,000 or 56.57% of total sales, search staffs and facilities it has
compared
with
such
sales of acquired in its expansion, both
$25,735,000 for the full fiscal year within its own framework and
ended March 31, 1954, or 41.19% by
the purchase of companies,
year

amount to

Lynchburg, Va.
LD 39

the

write

highly specialized, but

are

chemical

struments, with sales of $28,672,822 in 1954.
One

potential*

the product

measuring, testing and control in-

For the first nine months of

Camp Manufacturing

Chemical; it promises substantiaL growth and enjoys excellent
{i1 margins. ordnance activl•n the field will have ttieaMurproval of the merger at meetings £
are
f course subject to a
ance of both civilian and military
on
May 16. Weston is a welld
outside factors
With
orders. At the moment, civilian established designer and manufacorders are on the upgrade; how- turer of electronic and electrical

crease.

Call

packaging industry.

diversification
is
notable, and manufacturing' units
cover
nearly all important ciop
centers.
Many
individual
n: achines

with knowledge

of Japanese

agricultural machinery. Thus
empnasizes
production

Geographical

This electronics field can be seen in
gives ttie company both, the as- the proposed merger oi Weston
surance
of growth ,in sales and Electrical Instrument Corporation
profits, as the field is an expand- into Daystrom. Stockholders of
tag one, and statohty, since toose both companies will vote on ap-

should international affairs
considerably, military
orders
would
undoubtedly
in-

have unusual appeal

investors

division

worsen

American Furniture

may

to investors with vision—

declined a littie in 1954 from 1953,
following the general experience

the

ever,

offices

branch

our

SECURITIES

probably

sales

Machinery

f°™

Trading Interest In

JAPANESE

secticides, fungicides, plastJcizerc
and others.

the

into

wires

rVlprrt.

where well integrated production
includes such products as in-

set

expansion

Direct

1954

.fnl1nws.

Rentals,
3%;
and
Ordnance, 23%. Strongest growtn
in recent years has been exhibited by the chemical division,

field.

electronics

the

upon

La. - Birmingham, Ala.
Mobile, Ala.

principal

four

New Orleans,

Machinery

a.*d

N. Y.

NY 1-1557

HAnover 2-0700

revenues about as follows: Chemicals, 45%; Machinery Sales, 29%;

development, so important in this duction of gyroscopes for use in
field,
can
be coordinated and1 guided missiles and miniaturized
made mutually supporting among electronics control equipment for
the various subsidiaries.
aircraft and guided missiles. This

is currently in a production goes mainly to
of transition from its graphic large aircraft manufacturers

company's

„

ac-

The company

ffiPONNELL&fo

The

diversified

businesses.

divisions ^contributed

Stewart .Warner

Daystrom

year

lull

basket

Exchange

Stock

American

19 Rector St., New Yortr 8,

jeal, the investor acquires a whole
well-managed

Exchange

Stock

York

New

Members

quired American Gyro Corp., now
operating
as
Daystrom
Pacific
Corp. This new corporation is active in the development and pro-

electronics.

Steiner,Rouse&Co.

(Page 2)

Members

ia>UU(J electrical connections.
The Instrument Division has
iust announced
its entrance
just announced us entrance
into the atomic

Last

Thereby,
research

cisco.

and others.

field

growing
—

Specialists in

connections*

al^o

Curtiss

gent products,
yet
concentrated in

Partner, su.tro & Co., San Fran¬

ness

diver¬

with

requires

and

Giectrical

Sold—Quoted

Bought

Schwartz, Senior

bidney

—

equipment for International BusiMachines, Sperry Gvroscope,
General Electric, CBS Columbia,

by
acquiring
companies

Cleveland,

Chicago,

effected

(Page 2)

measuring and controlling instruments
for
use
by
the Atomic
Energy Commission. In addition,
this plant produces a large variety
of computers and other electronic

because it has

Exchange

New York

parts

initial

security

Member

Stock

American

120

32,000

Day¬

strom, Incor¬
porated, as a

1920

installations

such

operations also

location

forth.

Established,

popular now-

adays, can come in various ways
type of pxuuuvb, market, geolyyj UJ. product,

request

first

battleship. Each unit contains over

Diversification,

Corp.*

City.

Machinery & Chemical Corp.

s^aHed, in record g New Jersey>
time, six such
units Qn thg v g
the

Dsystrom, Inc.

Northern Illinois Gas

Principal Exchanges

and Other

Metal & Thermit

Exchange
exchange

York Mock
York Stock

New

York

New

inS gunfire to bear on the fastest
aircraft. The division recently m-

New York Citv

P^vnoIdH & Co

Louisiana Securities

Research Dept., Reynolds & Co.,

tracking electronically and bring-

Rpsp-ircb I)enartm°nt

Corp.

Alabama &

Daystrom, Inc.—William N. Schill,

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

as an

WILLIAM N. SCHILL

Long Bell Lumber of Mo.

Analysis

particular security*

Food

Investors D'v. Services "A"

they to be regarded,

are

Holly Cotp.

Polaroid

for favoring

(The articles contained in this forura

Giddings & Lewis

Lithium

reasons

Participants and

Their Selections

week, a different group of experts
the investment and advisory field from all sections of the country

Week's

This

Forum

A continuous forcin hi which, each

Chemical Corn Exchange

Concord Supplies

Security I Like Best

Over-the-Counter

Quotation Services
for 41 Years

through

National Quotation Bureau
Incorporated
Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
SAN FRANCISCO

Volume 181

Number 5422

The Commercial and Financial Chronicle

By IION.jJOSEPH C. O'MAHONEY*

Chairman, Senate Sub-Committee

;

O'Mahoney, expressing

.rapid

need of

sees

^
>s.

•

The Stock Market Inquiry—Sen. J. W. Fulbright

PLAY BALL

Cover

Some Public Policy Implications of Automation
^

■

t V'

With

^^■77-Sfen. J. C. O'Mahoney

•*

Easy Street!

•

Proposes a study on public policy to deal with such
(1) displacement of personnel; (2) the possible
shifts and distortions which may arise in the distribution of

inquiry.

■

matters

s..

Lines

power; (3) the sound and equitable distribu¬
expected gains in productivity ; and (4) the impact
of automation upon the business structure. Concludes it is an
important matter for public, policy to prevent the new mate-

•'

•

V. '-J..*

V "

-.J.

!. .* -J-

■i

•V*

^—John Leeds Kerr

Obsolete Securities Dept.

Unmaniplated

WALL STREET,

'"-'r

Market—Ralph H. Demmler

American States Oil

;

new

first

pear

and

the

words

huge

thousands

sometimes

old

make

new.

plants

without

the

lines.

case

with

the

United

new

multisyl¬

labic
u

have

scattered

Such

and

tunity to

automation."

It is not to be

social,

found

structure

the

that

latest

diction¬

study is unavoidable.

ary, to

yet
sents

repre¬

matic

prob¬

devices

which

ity of local communities

into

banks to produce.

istence

ex¬

fen. J. C. O'Mahoney

tion method which

with

the first machine tool

first wheel.

or even

with

the

18
20

first machines

the

that

create

every

machine

new

its

Securities

profit

■

i t h

42
Hoover Commission Cities Waste in Disposal
Government

prob¬

Patman

Committee

Group's

Imore goods at lower prices, their

public

more,

.of

the

end

...

the

that

created

adoption of such
policy

automation

rules of
certain

make

would

sta¬

f--......

■

This result

achieved, how-

was

in the main without regard ;
"to the hardships visited upon the

worker

cases even

and v in;

J As inventions became
-

plex and

productive, they did
fact destroy the jobs of the men

the

machine.

new

Frequently this displacement
at

time

worker
a

com-

.-displaced
.

some

displaced community.

when

was

that he and his

.in

the

he was trained,
family dropped

and

social

displaced

longer able to find

job for which

the

came

economic

scale.

.Industrial progress, therefore, was
marked

distress

for

trail of hardship and
individuals, and also

for communities
of

being

longer capable

supported

displaced

modern world

the brink of
war,

avoided

Congressional Inquiry

Automation
'recent
•

signifies

the

development of the

mechanization.

most
age

appears

now,

economic

by Sen. O'Mahoney before
on
Automation,
sponsored by the CIO Committee on Eco•nomic
Policy, Washington, D. C., April
National

Conference

which

can

tutes

for all

the

only

of .our
freedom.

and

against this threatening back¬
we must consider the

ground that

meaning

and

the

possibilities

automation. What contribution
it

make

for

the

winning

survival

Chesapeake Industries

As We
Bank

See It

and

(Editorial)

Insurance

Cover

Edgemont Uranium

Stocks

momentarily

impair

strength for the cold war?'

viewed,
the

;

Business Man's Bookshelf

Coming

Events in the Investment Field__

are

outset

add

welcomed
sirable.

the

our

and

That

that

-J

Indications of Current Business Activity

resources, must be

recognized

Funds

NSTA

Notes

have

IllLrLllIiLU

de¬

page

I U1/ l\u

Observations—A.

Wilfred

May

Report

Securities

Utility

Albany

•

Nashville

Boston
•

Exchange

TELETYPE N. Y. 1-5

•

Chicago

Schenectady

•
•

Glens Falls

■>.

•

Securities

Railroad

NEW ENGLAND

(

Securities Now in Registration

Prospective
Securities

Security

Offerings

LIME COMPANY

Salesman's

Corner

The Market

and You—By

The Security I Like

Wallace Streete

Best

—

The State of Trade and Industry

Washington and You

...

100% owned, has
additional contract with
the Atomic Energy Commission to
enlarge the facilities of the $5,000,000 plant for the manufacture of
metallic calcium and high purity
boron free magnesium. Company
is the sole producer of metallic
Metals,

calcium in the U. S. A.
Twice Weekly

COMPANY, Publishers;

2-9570

state

SEIBERT,

DANA

President

ary

25,

1942,

Offices:
111.

matter

post

the

etc.).

135

office

STate

Salle

St.,

2-0613):

United

Pan-American

Union,

Dominion

Canada,

Febru¬

New

uranium tetra-

by calcium."

Bank

and

year;

per

$58.00

per

DAYTON HAIGNEY & CO.

year.

Incorporated

Note—On
rat*

Record — Monthly,
(Foreign postage extra.)

account

pvchango.

subscriptions and

be made

75 FEDERAL STREET

Publications

Quotation

$37.00 per year.

eign

U.
Members

States,

and

$55.00

Countries, $62.00 per year.
Other

the

South

(TeleDhone

Possessions,; Territories

'■

Thursday

depend

all techniques for ex¬
uranium from crude
on
the reduction of

York, N. Y., under the Act of March 8, 1879.

Other

April 21, 1955

and tity news,

Other

pure

Subscription Rates

Worcester
Chicago

ore

fluoride

to 9576

(general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
Every

tracting

New York 7, N. Y.

SEIBERT, Editor & Publisher

Thursday,

Eng¬

uranium fluoride

second-class

Subscriptions

WILLIAM

Reg. U. S. Patent Office

HERBERT P.

"At present

Reentered

'•

DANA

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

land,

FINANCIAL CHRONICLE
i

Nelco

signed

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Direct Wires to

Philadelphia.. Chicago.. Los Ange!es

Reporter's

REctor

New York Stock

Teletype NY 1-1825 & NY 1-182S

Our

Public

25 Park Place,

Members

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securities

40 Exchange PL, N. Y,

HA 2-0270

Our Reporter on Governments

p r T T Q n f n CTflPKC
u

markets

trading

over-the-counter

MACKIE, Inc.

News About Banks and Bankers..!

Published

For many years we

250

Singer, Bean

perhaps -easier

Continued

maintain

than

Mutual

The COMMERCIAL and

BROAD

Bargeron

any

productive effec¬

was

Sodak Uranium

Standard Uranium

forced to

devices or techniques,
they electronic, mechanical, or
simply human "know-how," which

cur

improved

V.114, 1955.

specialized in

will

Sulphur

5's 1967

;

Dealer-Broker Investment Recommendations

What

man?

problems may it raise which might
even

Pan American

of
can

this struggle

•

City

Corpus Christi Refining Co.

safeguard

cherished -liberties
It is

consti¬

Philadelphia &

Lake

progress

tiveness of
*An address

the

has been at

abyss of nuclear

•

Salt

Einzig—"Britain to Continue Control of Capital Issues"

have the sense
realize that moral, social, and

only if

concede

Need for

the

danger

Thus

industries.

Operations

Light of the Cold War

The

•

^displaced

From Washington Ahead of the News—Carlisle

Automation Must Be Appraised

ever,

•

Investigate Federal Open Market

with

bilizing and not a disturbing ele¬
ment in the national economy.
'

jobs and raised the standard

living.

The object of such a-study would

Jess by reason of the fact that the
-new
machines .generally
meant

Teletype: NY 1-4643

■■ 1

{

Regular Features

the effects upon, the worker and
though every new machine
the local community.
displaced some workers, neverthe-,

introduction

-•

Surpluses

Direct wires

political

than

Broadway, New York 4

of
DIgby 4-4970

Even
.

mass

investment

and loss rather

request

J. F. REILLY & CO.

it must of necessity make,
rules and those rules will

concerned

Prospectus

own

commodities.

numerous

lated,

can.

by making
-possible the production of cheaper
;and

Municipal

jurisdiction of local communities,,
or even States to regulate in,the;
public interest. If it is not regu¬

because

demand

new

and

is, therefore,

Proposes Plan for Broadening Market for State and

local
produc-.

lem which is beyond the

'they conceived them to, be de¬
stroyers of-jobs were .unable to
«see

'"'White Canyon Mirsin

Chevrolet—Wilma Soss
*

exist only"

can

Col-U-Msx
17

production

mass

markets.

Those who feared and sought to
wreck

It is

U. S. Lithium

The Solid Gold

the abil¬

lem
"came

auto¬

new

is beyond

Cutting Taxes for Schools—Roger W. Babson

In the first,

build and to install the

W. Zelomek

the Automoblie Industry—R. H. Sullivan

place, the investment required to

sure,

.■'•.*4

■

Our Enterprise System and a Free Stock Market—Louis Ware

political

and

Corpus Chrisii Refining

Money for Future Delivery—Frederick G. Shull

Congressional

and Atomic Energy—Francis K. McCune__

Overbuilt?—Herrell DeGraff

Automation in

has the oppor¬

economic,

state

clearly that the push¬

see

■.

The Crisis in the Textile Revolution—A.

The entire population of the
States now

;

scores:

throughout the
respect

Private Enterprise
Are We

button, industrial system has such,
widespread effects upon our whole

word

workers

of cities

seem

by the;
which em-;

units

country

problems

is used

corporate

ploy

invented

are

business.

tional

after¬

ward, but occasionally new words

■.

\ —Fayette B. Shaw

.jf

4-6551

•

problems are not created however, upon a.larger stage be¬
words. The problems ap¬ cause it is an instrument of na-;

NEW YORK

Telephone: WHitehall

'C:'jp-

"Why Doesn't the Government Do Something?"

New

fU
\\

;

•.

SEC Powers Limited to Preserving a Free and
.

v,_", '

U. Cobleigh

moral and cultural forces.

our

■»>

Prospective Inflation and Investment Policy
7?:,
*
J'i.

from crushing

?-~r.

tion of the

rialistic processes

■'

-,y.■■■/••-:

purchasing

mass

-.J- *

•••

v — Ira

<«>

International Telephone and Telegraph Corp.

i';.(

as:

obsoletes

And you'll end
up

Congressional

Cover

•

the impact of recent <

concern over

in automation,

progress

AND COMPANY

V-—Roy L. Reierson

Sen.

Page

Business Prospects in the Coming Months

Economic Stabilization I;

llCHTEIlSTfl

Articles and News

i i

U. S. Senator from Wyoming

INDEX

Some Public Policy Implications
Of Automation
!

(1827)

in New

York

the

fluctuations

rpmhtancps

for

for¬

advertisements must
funds.

BOSTON
Telephone
Liberty 2-6190

10, MASS.
A. T. &

Teletype BS 596

The Commercial and Financial Chronicle

(1828)

microwave

Lines

International Telephone

Telegraph Corporation
the change in corporate

ment in

earning

tion

Food

aries

"fifties" will be it.

communication-slanted

fully
it

world,

what

the

and
in

does

also

owns

the

telegraph subsidiaries serving

and

S.—provide
major tele¬

Cuba,

phone service,
and
througn

owns

Rico,
Argentina,
Brazil, Chile and Bolivia; and IT
Puerto

.,58.17%

the

each

of the

countries

Ira

the

and

Cobleign

tion—

and

ecumenical

global

vehicle

expanded
on

has

appealing as was
phone company serv¬

America,

the

Great

the

divi¬

expansion

with

set;

the

It's

Capehart tele¬

manufactured

ah excellent

line

to¬

radios, phonographs and combina¬

tions,

De¬

about

taking place—manufac¬
You're surely

gether with

ing many countries, in Europe and
South

talk

where

electronics.

vision

Attractive and

the idea of

been

plus

complete

roster

the popular "hi-fi" elements) at
Capehart - Farnsworth
Company

pression jammed the switchboards
of progress.
Revenues fell, ex¬

than

companies

eleven

research; and, in Chicago, the
Kellogg Switchboard and Supply
manufactories.
Company division manufactures
The forties—the third decade—
and supplies telephone apparatus
might have seen a fulfillment of and
equipment to the independent
the original I. T. arid T. promise,
telephone industry in the U. S.
(

countries and

even

but the Second

with

vened

far flung

World War inter¬

the

final

several

Central

European coun¬
tries were summarily appropriated
and
operated
by the Commies
without regard for the standard
economic

amenities

All

payment.

and

purchase
these events

tended to suggest that

original

perhaps the
doing a public

plan

many
sales of

1954

Shang¬

hai, and plants and properties in

and

that

result

the telephone company in

all
-

companies abroad.
Kellogg were at an

tinm high.

assets./

turing division of IT, in the U. S.,
is Federal Telephone and Radio
Company, a-major manufacturer
of

electronic

electric

and

The

reasonable

the

actual

which

indicated

(The

private

industry.
It produces a
transportable Instrument Landing
System for the Air Force, and
,

service business around the globe
had certain recurrent drawbacks
—in particular political and mon¬

etary

uncertainties

tions. So

and

new

and

bearings

new

emphasis

course

many
were

"revving"

taken,

charted—de-

telephone

na¬

business,

the research and

manufacturing end of the business.
Thus today, in the middle of its
fourth decade, we perceive IT to
be

quite

far

from

removed

its

original format. Telephone service
is

limited

now

435,000

of subsidiaries in Chile
Cuba

(142,000), Brazil, Puerto Rico

and Peru.
none

phones

(143,000),

Except for Puerto Rico,

these subsidiaries

is suf¬

ficiently profitable to justify in¬

similar

equipment

for

the

Civil

Aeronautics Administration. It has
a

perfected version of long range
(LORAN)
for
the

navigation
Coast
it

Guard; and only last week
announced

was

"new

that

Federal's

and ;

revolutionary" radio
navigation system, "LORAN, had
entered
large
scale
production
(Stromberg Carlson and Hoffman
Radio

are

licensees).

producing this also,
This

(classified)

de¬

vice, no bigger than a shoe box,
provides uninterrupted informa¬
tion

aircraft

pilots, and

accu¬

rately tells them moment by mo¬
ment, exactly where they are in
relation to a given ground station.
Other products of Federal include

' 'r

The second

year.

portant

one

from. phone

and

the

business

week.

now

recognized

as one

promising

entire economy,
•,

Management
includes

rectorate,

Behn,

one

company,

been

devoid

action.

149 Vjj

hit

vicissi¬

Then

these

trend

tion—a

came

60c

pay¬

8O0 in

1952, $1 in
1953 and 1954, and an indicated
$1.20 for 1955. You can see from
in

the

right

direc¬

that, buttressed by
(consolidated)
of per¬

earnings

haps $3.80 or better this year, and
exchange improvements abroad,
might provide new elements of

vitality

for

this

interesting

this will
-In

which

years

United States Lithium
Corporation
THE LITHIUM

event

you

have

and

disposed, you may share. Why not look over the annual

15 EXCHANGE

„

New York

BOwling Green

PLACE, JERSEY CITY 2, N. J.

Jersey City HEnderson 5-1300-02

Teletype: JCY

Stock

Exchange,

—

the

798

have

Orders

booked

producers

Both

were

•

March

v,*

ran

well

means

Mill
orders

backlogs

ahead

the year.

will

quarter

will set

all-time record for

is running the

Any

consumer

who is counting

let-up in

disappointed.

Carryovers plus continuing
strong demand from virtually all industry will make for a strong
market through third quarter and beyond, this trade authority
reports.

■>

■tali

Strengthening truck schedules pushed United States vehicle
'^Output to an all-time high of 206,458 units last week. The present
peak
'

206,262

cars

and

trucks

April 2, 1955.

/'./ "Ward's

rition

Automotive

completed

the

week

ended

Reports" estimated April

11-16 construc-

176,085 cars and 30,373 trucks, 5% more than the pre¬
ceding week's 168,002 cars and 28,409 trucks. • A 102-week peak
in truck erecting the past week was the biggest factor in the new
industry mark.

Chevrolet, Ford, General Motors Corp., Dodge and Willys all
sharp gains in truck manufacture last week over
holiday-trimmed counts during April 4-9.... ;
<

programmed

These

increases, plus stronger programming by other produc¬

have put truck erecting thus far in 1955 at an estimated fig¬
of 329,629 units, less than 2% under comparable
production
year ago of 335,919 units.

ers,
ure
a

This week, to date 1955 truck construction will pass like 1954

output,

while

car-truck

manufacture

passes

the

3,000,000-unit

Continued

page

ESTABLISHED 1894fc

STATE AND

MUNICIPAL BONDS

Street,

formerly

Granbery, Marache & Co.

the mill.

increasing rapidly. The consumer without
risk of finding himself short

are

the books

later in
third

that April production

York

opened

Moriarty and Patrick J. Mori-

arty.

the basis of present and future demand

LOCAL STOCKS

under the management of George

declares this-trade weekly.

Grimm &

New

branch office at 1307 Main

Telephones:
9-4058-9

members

are

CORPORATE BONDS

too.

SARASOTA, Fla.

are

struggling without too

delivery promises.

The balance sheet makes

New Grimm Co. Branch
Co.,

been

five

REQUEST

Julius Maier Co., Inc.

producers have

left in which, if you are so

report?

surprising, since the mills

In flat-rolled where the pinch has

I. T. and T.'s decade.

good reading
STORY

weeks

look anemic

now

this year,

trend

1951,

improving equity. It could be that

Trading Market

ucts
•

decade with 16 dividend-less years

behind it.

barely/

having their problems. Over¬
loaded with inventory several months ago, they are now pressing
mills for deliveries. Their stocks of sheets, plates and other prod¬

tudes,
political,
monetary,
and
military, IT entered 'A its fourth

ment

for

The warehouses themselves

started out

variety of

are

the industry.

1929, couid

the theme

not

Fact is we'd like to close
After

capacity, anywhere from 125% to 160%, depending

ing (you'll pardon the expression)
telephone numbers for the stock
on

boom

much luck to. live up to

historic standards, nobody is pay¬

with.

inventories

with

warehouse

loaded to the hilt with orders.

for a lowly 2% in 1932
(but who had the dough?) and its
postwar high was 33. Thus, by

here

postponing its
sales.

The

;

bought

today.

is
on

enough steel to keep their production lines operating,
magazine.
'
/
;
,
'. ,

declares this trade

This

gorgeous

Big Three

the

has surely

of the

able to get

excellent

the

for some products
Demand for 1955 models

models rather than lose out

new

Their orders

beyond expectations.

/consumers far,from being able to build

Board.

Marketwise,

quarter.

■

beginning to put

deals, which are even more costly, and the gray market where
the price is what the traffic will bear. It also means that some

Chairman

third

are

—

with / Mr. ;i Sosthenes
of the founders of the

Warehouse buying by users that normally get what
they need
from the mills usually is the forerunner of conversion

distinguished di¬

over

.direct

of the most

appears

switch

for growth in our

areas

for the

period

...

consumers are

good that at least one

;V:

.-t

pressure

been

manufacturing

history, it is further reported.

■

for this

to; electric

electronic

boomed

result of booming demand desperate consumers are
pay¬

Meanwhile, automotive

away

and

below the year-earlier leveL

of goods and services

April, May and June will
the $369,900,000,000 annual rate in the second quarter of
production was the greatest for any three months in

im¬

favorable

ing warehouse prices for fill-in tonnages to meet current require¬
ments, states "The Iron Age," national metalworking weekly, this

seems

trend

the

when

(3)

rate

22 and 629,000

Jan.

nation's- production

surpass

dollars,

dollar, payment

contributed

7;'///\

Advisers.
This was $7,200,000,000 above the previous
high for the first quarter—set in 1953. Most Government econ¬

de¬
livered to the parent company in
1954 was $1.35 per share—out of.
sensible.

27%, while initial
in lumbering, farm

Economic

cannot

and

activities

that

lower

much

were

omists appear confident total output in

percentage of

purposes;

cash

claims declined

Seasonal expansion

outdoor

indicated

reports

benefits

yearly rate of $369,000,000,000 in the first three months of 1955,
according to a preliminary estimate of the President's Council of

en-;

of exchange restrictions;
sound management should

for growth

net

equip¬

ment for the armed forces and for

weeks since

the nation's

and

The fifth and largest manufac¬

other

and

because
retain

lower.

latest

insurance

Continued

ago.

41%

1953

any

employment

idle

division at Fort Wayne, Ind. Also now $1.20.)
change restrictions grew, rate in¬ in the same city is the Farnsworth
Let?s review a bit.' We have
creases
became
super
difficult, Electronics division, dedicated to touched upon two significant
and
political uncertainties mul¬ research in advanced electronics trends of IT in recent
years. One
tiplied. That was the story of the and the application
of
atomic is the trend to do more IT, busi¬
thirties—the second decade. Still
energy to industry/There are also ness in the U. S. The percentage
essentially a public utility with the Federal
Telecommunication of American manufacturing sales
21
phone, radio or cable com¬ Laboratories at Nutley, N. j. for was 33.8% in 1950 and 42.5% last
munication

year
were

be delivered to U. S. stockholders

(2)

covered

$2.80 for

countries

field

unemployment

Unemployment declined about 12% in March among persons
by state jobless pay laws. As of April 2, the number of
workers dropped to 1,518,700, the United States Department :
of Labor reported.
This represented a decrease of 458,000 in the

paid (1954) on the
three points should be
(1) that much of the
other

work

was

from

net

falling off in total industrial production for the
was

year-to-year comparisons.

sale

To those who

the

for

claims

made clear:

familiar

planet.

our

turing

com¬

let's

Now

sions

company
sound growth

telephonic

$608,042 to IT in dividends

Index

week.

quire why, with that much in net,;
common,

ro¬

specula¬

holding
for

wired

munication

popular,

NYSE at 271/2.

only

last year.._

was

and

Iron

out

last

claims

7,167,677 shares of IT
and now selling on;

outstanding

Curtain; and radio telephones to
ships at sea. American Cable de¬

latter twenties

mantic,

the

Division

worked

livered

equipment.
in

behind

off

"Coolerator"
all

the

telephone

write

This

with cable circuits to most of the
not

stockholders—and this after

Corp.,

American Cable and Radio

necessary

for

Production

Business Failures

noted for the period ended on Wednesday
Output, however, continued approximately 10%
higher than in the same period of 1954.
of

electronic

throughout Europe and the
British Commonwealth.

$2,400,000

moderate

nation-at-large

items

stock

subsidiaries,

Thus

couple of dozen other subsidi¬
manufacture
and/or
sell

phones and quite interesting pros¬
IT is really quite a cdmpany
pects.
(Two major phone com¬ with total income for 1954 of
panies, those in Spain and Argen¬ $423,830,623.
On a consolidated
tina, were sold some years ago.) basis, this gross income carried
There are also radio-telephone down $20,068,525 to net income

in many coun-

tries

Cuba.

blue¬

printed

and

46.5% of the stock of Telephonos
Mexico
S.A.
with
335,000

1920,

w a s

Peru

Industry

Price

Auto

and

year,
60,000 lines of automatic
telephones for the British P. O.

of new capital for indi¬
cated expansion needs; and rate
problems are particularly acute

Started hope¬

Commodity Price Index

and installed, last

elements;

jection

Trade

Retail

State of Trade

Telephones

Telephone
and
Telegraph has waited patiently
for the right decade. Perhaps the

International

Production

Electric Output

Carloadings

Standard

Cables, Ltd. (London) is the
largest
manufacturing
unit.
It
supplies rectifiers, vacuum tubes,
micro-wave systems, radio avia¬

emerging.

Steel

The

'■

and

direction, and improve¬

power now

Thursday, April 21, 1955

sys¬

producer of selenium recti¬

Abroad,

Enterprise Economist

Comment

fiers.

By IRA U. COBLEIGII

telephone

tems, telephone switching equip¬
ment; ana Federal is tne largest
U.

And

radio

...

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0JI6

LONG

1, GEORGIA

DISTANCE 42!

r
Volume

Number 5422

181

The Commercial and Financial Chronicle

"pie-in-the-sky"
aviation

television,

industries,

new

radio

and

subsequently

even

And Investment

recog¬

nized by

If you
out
us

and

don't want the wits scared

1932 as wild dreams, have
through by 1955. And quota¬
tion-wise,
many
of the
stocks
come

which

Secretary Weeks last week, don't

volume

eminiscing

boo

the

treme

KEN¬

NETH

GAL-

BRAITH.

ulated with the funds looted from

Houghton
Mifflin

Galbraith

Dr.

counting

of tne

the

quotes

saying

this

times

levels

ac-

course

authority—gov¬

and

Flint,

Mich,

spring

the

Bank

1929 the embezzling group's

accompanying ^ sooth¬
forecasting by the

and

highest

212

§3.)

Industrial

-Union

the

Co.,

Boston.
pages,

skepticism

ferring

(THE

CRASH

For

the

and later con¬
its hospitality on all va¬
riations of the pyramided holding
company and stock-jobbing device.
A dramatic example the results
of being right-too-soon is shown in
the case of the experts who spec¬

JOHN

May

of the time—in first showing ex-*

ago

Wilfred

shown

Exchange's attitude toward
so-called investment trusts

century

ter

similarly

Stock

quar-

bust of

sures

our

m-a n

becomes convinced by

the seemingly inexorable pressure
of the prevalent "realistic" pres¬

Gal braith's

one

stpck

buying had put it ahead by about
$100,000. Then, seeing that stocks
too

were

"wisely"

high, it

went

short* just * as the market Soaredinto the blue yonder of the sum¬

so costly, psy¬
well as financially,
goings-on,YC'"Y'Y YYvY that, the group, convinced : and
Not that economist' Galbraith" chastened, returned to a long po¬
overdoes easy d ebu n k in g, or sition—just before the climacticV
:
exploits the appeal of that hind¬ crash.
;,
//■.;, 7
The impact of the timirig diffi¬
sight activity. In fact, he is quite
culties is succinctly summazired
unique in adding some construe-^,
tive analysis and conclusions to by
Dr. ■* Galbraith:
"Indeed
the
the traditional glamor of a stock temporary breaks in the market
which preceded the crash were a
market history.
=•■

ernmental

O. K,

the

gave

private — which
to
those
mad

mer

This whs

sky.

chologically

this

vein

serious

lieu

of. serious

trial

who

those

for

had

the t declined fantasy. Early in 1928,
volume is serviceable in offering.' in June, in December, and ih Feb¬
material
for
the
reader's
own
ruary and March of 1929 it seemed
enjoyment,

nostalgic

mere

that the end had

thinking and judgments.
Thus he cites the

impressiveness

public's earlier
the

witn

s'ork-

scarcity factor for rationalizing
everlasting bullisnness, -■>/ - -

come.

On various

'Times' hap¬

of these occasions the

pily reported the return to reality.
And then the market took flight
again.

Only

durable

sense

the. doom could survive such discour¬
country might be running out of agement. The time was coming
when the optimists would reach a
common
stocks.
One
reason
"There

worry/ that

was;

prices of stocks
was
explained,

were
was

high, it
that there
so

weren't enough to go around, and

accordingly they had acquired a
'scarcity value.'
Some issues, it
was said, were becoming so desir¬
able

th at

taken

would

would
the

not reappear

trim"
The

they

out

soon

market

be
and

at any price.

v.;'t■;

■:

Chronic Difficulty of Timing

Perhaps
structive

this

book's

service

most
its

con¬

demon¬

stration

pf the insuperable diffi¬
of timing — the disastrous

culty

results to those who
but at the wrong

were

time.

"right"

He gives

examples of the righi-in'28-wrong-in-'29 boys, in both
high and low places. Thus, the
highly-respectable Harvard Eco¬
nomic Society depicting business
conditions
in
early
1929
was

many

feeling that a recession
overdue; only to confess its

bearish,
was

"error" and turn bullish when the
had

setback
summer

not

appeared by the

1929;

subsequently

rich harvest of discredit. But it has

long since been forgotten that for
many months those who resisted
reassurance were similarly, if less
permanently discredited." And all
of us who lived through those

emotional

time of
recall

awful

the

euphoria

emotional

can
beat¬

ing necessarily taken by any non¬

disbeliever.

conforming

Similarly, the impossibility of
timing the effect of specific causes
of major as well as minor market
movements is demonstrated. As in

subsequent

jective

ulating

there

eras,

reason

for

easy

was no ob¬
credit stim¬

post-Crash thor¬
oughly debunked and
deflated,
have
by now entirely retraced

Mr. Kerr expects further inflation, with
higher stock market.
Cites three stages of inflation: pre-War;
War-time, and present

for¬

period where emphasis by nation's leaders is on avoidance of
depression at all costs. Maintains our income tax system is

speculative orgy in 1928
any more than at any

peaks., What shall

conclusion?

our

The appearance
most

timely.

much

the

public

when

1929

here

—

query

highlighted by the Fulbright Com¬
mittee's highly-publicized study of
the stock

market, at which Sena¬
hearings the author was a
prominent and controversial wit¬
ness
(pinch-hitting).
/ J >■;'/V,'}//;

torial

the

All

the
the

disappointing

hanging in the air. Besides
above-cited query .regarding
1950's Catching-up witn 1929

dreams,, one must query omission
of conclusions about the signifi¬
of the current mad specula¬

cance

tion

by the amateurs in uranium
this a compartmental¬

stocks;" Is

braith

agrees.

This

history

mood," Gal¬
t

•

;>V

constructive in
stimulating the reader to make
some interesting conclusions of his
own.
For example, the mid-cen¬
tury

aftermath

some

those

of the/speculative pic¬

ized. part

pleased to

the

There ' is'

question

and other financial resources,

ers

should support a

breaking market,
Which Dr.1; Galbfaith

concerning

have 1. made iup

not! seem

does

V! Y'^r*'

mind.

his

•

"Another* major o miss i o n
the book lies in concentration
'

Exchange

and

practices,

the manipulations
carried on through the security
affiliates of the commercial banks,
skipping

over

brought out previously
sub-committee of the Com¬

fully

(by

mittee

the

Res.

Banking and Currency
S.

Senate

3); and

71,

pursuant

leading

ma¬

jor remedial legislation before toe
enactment o£ the cited Securities
Act of 1933 or the Securities Ex¬

The volume
might well substitute discussion
of
the
significance of this farreaching device of the times, for
its easy picking on Mr. Mitchell's
change Act of 1934.

thorough considera¬
effect of
extended Federal regulation

tion

the

Deal

New

culation,

some

correc-

tions

time

will

infla¬

makes

r'ican

do not

john Leeds Kerr

plateau./ We'are
business

comments

bring

about

how

Vice President,

our

firm

event,

our

present wit¬

unable to make up his

seems

mind about the

been

Inflation

Potential

versus

have

engaged

Inflation
'•

•,

YV-

only to read history in
haooened to

order to see what has

^f <./1

;

••

One has

condition can once-great nations which were
various; means ravaged by. the disease of infla¬
In every case that I have
which may, or may not, result in tion.
read about, the malady started in
actual inflation. Prices
fre^uentl^
rise for reasons other than'infla¬ the
same
way
and
ultimately
An

tion,

inflationary

created

and

obvious

that all brought about debasement of the

piic§ ris$s dp not necessarily re-

and

currency

♦An address by Mr. Kerr before Trin¬
ity University, San Antonio, Texas.

ultirpate

Continued

disaster.

on page

McLeod,Young,Weir & Company
LIMITED

...

Underwriters and Distributors

answer

Canadian Investment Securities
Since 1921

facilities for serv¬

offers complete

the

icing

investment
investors

American

requirements
seeking

op¬

portunities to invest their funds in
established Canadian companies with

growth potential.

to the

private teletype
in principal
and to The First

wire

tive

public

would
a

not

have

venture.

But by

service

cities
Boston

1955

offices

Canada

Corporation, New York.

he apparently is not so

even

Inquiries invited

Can it be that

actually there is no "answer"; as
about so much making up that

inc.

conglomeration

psychological

Head Office

forces—the stock market!

Miami

(And, please, in your next vol¬
the subject, Professor Gal¬

50 KING STREET WEST,

MONTREAL

price changes as significant
percentages instead of merely in
points.) \
•
-

VANCOUVER

ket

TORONTO, CANADA

EMpire 4-0161

ume on

braith, do express stock and mar¬
April 12,1955

not result in

Municipal Bonds

Chicago

inflationary condition can

Our facilities include

launched such

J. Van Ingen & Go.

New York

1938 cor¬
of

example

fact that for many years we

activity.

pro¬

sure—either way.

Presi¬

enough to

inflation, but it does not alter the

$64 question whether we are fac¬

be created that does

ing another Crash, which he poses.
He knows that in 1935 the specula¬

has become associated with

the

were

sharp

the

This

rection,

tion.
Actual

own

J. Van Ingen, Jr.

Business leaders

We are not United States at any time within
going back to the prewar world, the foreseeable future, but it is
to the prewar dollar, or to prewar
very important
for investors to
taxes.' "
:j;'7 V./h'.4,/ }
be aware of the dangers of infla¬

1929 encore.

ness

Mr. Bernard

stated

were

sin setting up a
We are in a long-term upward
highly dangerous inflationary con¬
spiral of government/ spending dition. By this I do not predict a
arid taxation. It is time to /stop ruinous
monetary inflation in the

the

statutes,

the impact of the

imminent

any

recalled

confidence and

dent's

happened since 1945—
happening today—seems
likhly to continue happening for
years to come. We are now on a
level

will

Roosevelt

prices

copper

lacked

has

new

ple were scared.

occur.

too high
at 14c in February, 1937, and peo¬

like to hear the word

pribe

cir¬

money

then

can

President

that

mentioned. Ten years have passed
since the end of World War IF

new

potential

inflation.

that

average

total

up-

power

the New Deal era, the actual

time,

r\.

purchasing

Despite the deficit financing of
stock
money
in circulation never
gained any great velocity, and as
a result, we had deflation instead

from

clivity to speculative excess. And
surely this is relevant to that,
an

expan¬

any

with

remedying the former abuses and
reducing

inflation

subsequent

administration

SEC

via

several

condition

created, by

that

inevitable.

of deceiving ourselves.
on

recounting the abuses revealed by
the so-called Peeora Hearings on
Stock

suggest

stocks,

what

whether/and if so how far, bank¬

similar¬

common

the

What

Attention

for; Future

f Gaps

the

always

inflation

and

causes,

currency

is abnormal in relation to

fearful. Bank¬

any, correlation with the present
uranium orgy?' •''' ■ Y;' •V'.'V

not

been

sion

ers

that

has

real estate

subsequent volume
our author will fill in on some of
these inherently implied leads.

announce

After

the

-boom/ arid does it have

does

currency

What/was the/true significance
of
the
1926-fermiriaied Florida

Perhaps in

are

ahead

expansion of

courseof

trend,

tion

inflationary

the

sucb

regard
gighifidant pot tent?"
shall

lies

which
possible
production, actual inflation, which
depends on the turnover velocity

word

ized,

inflation

excess

speculative.

mpre

suit from

stages

wa r

question about whether we are in

ture, from which the more serious

for

...

and tnat

investment community. is' immun¬

in omitting a

rate of interest is the

further

earlier

period. The only answer lies
the quirks of mob psychology.
"Far
more
important than ; the

entire investment philos¬
is based on certain basic
premises including the viewpoint
that

bond holdings in

actually proving

Our

least

reserves

ophy

are

other

1929,

reasonable

of the questions left unhan-

some

died

world's uncertainties; with cash

whether
a

Sees possibility of short

intervening periods of deflation. Concludes best defense of
capital is firm determination to hold common stocks despite

bemused

and beset by the question

another

peatest single inflationary factor.

of the work is
comes

personal income tax avoidances.
Additionally Professor Gal¬
braith has left an important gap

and

President Kerr & Co., Engineers

"strato¬

1929

Policy

By JOHN LEEDS KERR*

were

••

How

read Professor

about

their

from

sphere"^

liquidation was impos¬
sible, until its own resultant liqui¬ their descent to exceed those
dation.
;
v;/ * ■
Y,Y '■/*: mer "fantastic"

by prosperity-is-withpronouncements like that by

new

stubbornly insisting that pro¬

tracted

of you

Era ideas as well as
Some of 1929's glamorous

prices.

SERIOUS STUFF ON THAT CRASH

New

crazy

By A. WILFRED MAY

(1829)

WINNIPEG

OTTAWA

CALGARY

LONDON

HAMILTON

.KITCHENER

QUEBEC

NEW YORK

■

The Commercial and Financial Chronicle

(1830)

required

and distribution facilities

SEC Powers Limited fo Preserving
A Free and Unmanipulafed Market

provide a continuously improv¬
ing standard of living for our
people and to sustain the nation's
economic might, there must be a

Retiring Chairman, in describing the role of the Securities

issues of securities. Moreover, sev¬

Exchange Commission in the capital markets, points out
no

to check the

power

securities markets

and

popular will to speculate.

•

sold

originally

the

This

having securi;ies

the

capital markets.

control in securities transactions
Rese/ve Board.

Sees

Discusses

determined

which the
the im¬
portant economic function of
transplanting c a p i t a 1 borrowed
from the public by way of con¬

credit >\

by the Federal ;

need for further legislation regarding

process

markets

trading

serve

the permanent

vertible

Before

entering

datailed discussion of the operation
erf the Securities Exchange Act of
3 934, I would like to make seme
general

ob-

t i o

ser v a

into

any

mission in the
mar¬

kets generally,

trading
rets

t h

m ar¬

the

and

specula¬
through low

issue,
must

which will justify continued pub¬
lic confidence so that their vital

held

out,

but

market

the years ahead.

only

Commission's

all

the

Acts

administered

by the Commission.
The securities

powers

op¬

free and

un-

manipulated market. Nor does the
possess

either

securities

power

economic controls

on price move¬
Thus, although our activi¬

ties under the Securities Exchange
Act include enforcement of rules

credit

for

pendent

the

plants
from

at length later,
laxness of exchange
administration; (2) inadequate inlormation; (3) manipulative prac¬

closure

new

(5)

and

issues

turn

facilities

States

de¬

has

come

that

by the sale of

securities

is,

the

maintain

its

basic system of free private enter¬

prise—a system which has given
the

inadequate dis¬

people

highest

(6)

this

standard

known
"A

continued investment

investment,

new

United

of inside

obtaining proxies;

military

capital market. If, therefore,

activity in aid of such

information;

depends,
on

from funds raised

(1)

use

and

of capitsl. For the last three years
about 30%
of the cost of new

discussed

and

the

country

living

projected

ever

into

statement

by Mr. Demmler for the
on
Banking and Cur¬
rency
in connection with
the Study
of
She Securities
Markets, March 22, 1955.
Senate

1 See

Committee

Section

7(a)

the

position of preeminence in world
affairs—and

that

systen^is-

continue to create the production

Act.

securities

BLANK

deal¬

all

well;

that

the

tendency

existence

10 industries

sity

the

investor's

the

intelligent

standards

choice

the

and any

—

tendency,
that the

disciplinary
is

self-control.
lar

broker;

please,

you

Commission

investments

his

selection

or obligation
please mail me a copy of
pamphlet on "Canada: Dynamic Domicile of Enter¬
prise Capitalism" containing data on listed stocks that

your

have paid

opportunities.

Also there is

The reason I am writing about this article which is available
reprint form is two-fold. First. I believe that the subject of

Canadian investments is
est to

certain

any

firm

can

Thos. A. Eaison Inc., "E"'

Fidelity Union Trust Cc.

New jersey Natural Gas Co.
Purolator Products Inc.

Fireman's Insu~ance Co. of Newark

popu¬

First National Bank of Jersey
City

Suburban Propane Gas

for listing on

Commission

as a

issue

new

exchange, the
"anproved"
it.

has

Nothing could be further from the
truth.

The

power

Commission

approve

has

disapprove

and for

a person so to represent in
the sale of securities is a criminal

offense. I
spread

there is

sure

belief

all

wide¬

segments

that the Com¬
more

power

several

legislative

prohibition

acts;

(3)

based

are

classified

requirements

will

con¬

foRows:

the

have

although
This

and

penalties;

dealers.

to grow

policies

the

70 PINE STREET

NEW YORK 5, N. Y.

Offices in 106 Cities

1913;

Act

visers

has
the

and

men

firms

some

"bridge-over"

con¬

Don't Forget

•

telephone, by letter, by per¬
They don't waste their firm's money bv allowing leads

cold.

Every lead should be followed within the week it is

at THE LATEST.

Makris Investment Firm

(Special to The Financial Chhonicle)

MIAMI, Fla.

BEACH, Fla. —Modern
Investment
Service
Corporation
formed

Road

with
to

business.

offices

engage

Officers

are

ment
been

formed

The

page

Securities

Act

1939;

1940;
Act of 1940.

seme

the

Trust

The Commission also

functions

Bankruptcy Act.

under

Chapter X

Makris Invest¬
Company has

with

offices

securities business.

kouris is

the

Carlos

Ka-

principal of the firm.

Linn, President; G. A. Bass,

R. F. McCann

J. C. Weiner mun. Sees.
(Special to The Financial Chronic *•)

NUYS, Calif.

with

offices

the

rities Building. Partners are
C. Weiner, Leonard

Hennessey,

C. Mead, John

Charles

Lip-

schultz

and

Robert N. Lipschultz.

—

Ralph F.

McCann

are

securities business

16041

Sherman

Way.

Mutual Fund Inv. Co.

Secu¬

John

offices

from

and

engaging

Municipal Securities has bsen

formed

Opens

(Special to The Financial Chronicle)

VAN

and

Ainsley Building to engage in the

McCann

—

Bankers

Vice-President; and A. Stein, Sec¬

GENEVA, ILL.—John C. Wein¬

Indenture
the Investment Company
and the Investment Ad¬

1935;

it works out—it is much

say

contact point with your prosoects.

the Public Utilitv Holding Com¬

Act

pany

don't

leads gives your salesmen a dignified
I don't believe in cold canvass,

MIAMI

responsibility

Continued

conscientious

most

not interested in securities, or who cannot
time and place.
Money s^ent on

.Modern Inv. Service
;

—

are:

and

favorable

few examples of

legislative

draw certain

others

that salesman's work and so
best

2 The

the

retary-Treasurer.

and then let

Trading Department

are

M. M.

national securities ex¬
registered associa¬

even

Good salesmen follow leads—by

unlawful

of civil

and

list

type of advertising will help your salesmen meet qualified

tion

give

But

that brings in

some

Lincoln

these

people.

securities

him.

money,

better to have

350

waste time and energy calling on people who

interviewed

been

Let

to work

and proper reason to make a call.

(2)

liabilities

tions of securities

going to make money

can

advertising

(1)

imposition

by
changes

qualified salesman

upon

disclosure;

certain

Put

policies which
as

for

out.

with

salesman

has

Corp.

Merrill Lynch, Pierce, Fenner & Beane

If you will re-read this March 24

prospects that can buy, and who have the willingness to listen,

and you are

received

together

can

this

sonal call.

clusions

information, just call

do is to offer high grade investment literature that

Keep the Leads Coming
Think

securities under the securities acts

each

For latest market

The second is that I

profitable typas of advertising

both counts.

up on

fallacy that if a security has
registered with the Commis¬

sion, either for sale

South Jersey Gas Co.

Banking

irost

article in,the "Chronicle" I think you will agree that it measures

tive and regulatory powers by the
and (5) seF-regu,a-

National Newark & Essex

of the

one

is informative and educational.

Commission:

Examples?

that

for

C4) exercise of certain administra¬

American Insurance Co.

timely right now and should be of inter¬

"growth" stock investors at this time.

feel

been

criminal

consecutive cash dividends from 5 to 126 years.

the

power of

substitute

feel

The various securities laws

number of investment

Street, Anytown.

exercising

his

choice

sidered

free copy

Without cost

neces¬

industry in New Jersey where 23,000 fac¬
tories turn out
everything from chemicals to
electrical machinery
represent 9 out of every

your

the

Commission eliminates the

did have it.

That's

mail coupon below

Blank & Co.,
Main

than, in fact, it does have or than
could effectively exercise if it

CO.

&
or

for

Enterprise Caoitalism," will be sent
request—no obligation, of course.

guarantor

the American pubic
mission
has
much

Giant On Parade

years.

Telephone

to the courts, and to the Com¬

that

economic

strength

the

Federal Reserve System.1
The Securities Exchange Act of
1934 was directed against certain

practices; (4) unfair

you

Canadian companies

paid cash dividends consecu¬
A free booklet, "Canada: Dy¬

exchanges,

the

associations

ers,

think

our

or carrying of securities"
delegated by the Congress to

Governors

The

been raised. The expansion of the

purchase

the

system.

make

An Investor's

—

investors, to brokers, dealers and

nation's industrial plant, on which

relating to margin requirements,
the duty of prescribing these rules
""for the purpose of
preventing the
of

basic

are

economic

laws

advertisement,

newspaper

stocks have

Domicile

this

capital markets for original issue mission.
—public offering and private
1 used the words "allocation of
placement — have provided the
responsibility" because of a tend¬
means
by which in the last 20
ency on the part of many to think
years approximately $100 billion
that the Securities and Exchange
of corporate capital funds have
Commission is a kind of

responsibility to impose direct

use

examining,

free list of sound, growing

common

cations of responsibility which the

tices

Send for

Committee if I analyzed the allo¬
several

markets, the

assistance

Opportunity !

namic

American

namely:

Growing Canada

tively for 5 to 126

would

card,

return

along this line might be productive of interested inquiries.

copy

I do
to review in detail the

abuses,

Suggested Advertisement

double

the Commission.2

culated to preserve

Board

Using

change Act of 1934, but I think it

the aims,

by the "Chronicle" in

is being macie available

payers,

pamphlet form to fit into a number. 10 envelope at the following
prices: 1 to 199 copies at 15c each; 200 or more copies at 12c each.

of six statutes admin¬

one

underwriters,

the

dividend

pointed out that the Se¬
curities Exchange Act is directed

erations of which your committee

was

study was the amount of dividends paid, recent market
price of the stock and the indicated yield.
The article in question, together with the list of Consecutive

tively to stimulate qualified leaas for your sales organization.

generally the antithesis of price
regulation. They are powers cal¬

excessive

sion in the

utes other than the Securities Ex¬

but

are

ments.

in the

whose

not only of the
Securities Exchange Act of 1934,

published

"Canada: Dynamic Domicile of

Commission's function under stat¬

one

statutory re:
sponsibiJity bearing directly upon
general market price
levels, as

Commission

graphically depicted in the arti¬
"Chronicle" of March 24 bearing the title
Enterprise Capitalism." The article
included in tabular form a long list of Canadian listed stocks
which have paid consecutive cash dividends from 5 to 126 years.
Also shown for each of the companies and banks eligible for inclu¬
cle

I have

not propose

the

into

The extent of this stability is

out

function in the economic develop¬

istered by

ac¬

ment of the nation can be carried

have

may

not

"Compliments of' and the dealer's name in the line below is
imprinted in the space provided for this purpose when 100 copies
or more are ordered.
These reprints could be used very effec¬

largely at specific abuses found to
have existed by the Congress. The
Securities Exchange Act, however,

created by an honest market, was
Ralph H. Demmler

The

excessive

possible

unfortunately,

are,

companies and banks in Canada.

ous

investors' confidence, a confidence

Com¬

such.

and

made

investors

well-informed

quainted with the long-term earnings stability enjoyed by numer¬

desires. In fact, the restoration of

of securities.
The

credit

tion

capital.

capital markets for original
and
the trading markets
be operated in a manner

issue

mission has

The

the Act leaves the individual free

market for

original

tion's corporate

market

change Com¬

t i s,

into

Exchange Act of
1934 did not, except for the pro¬
vision for margin requirements to
prevent excessive use of credit,
provide any direct check on the
popular will to speculate. To be
sure, various prohibitions of the
Act were designed to dull some of
the shiny allurements which the

ties and Ex¬

stock structure of the na¬

dealers; and (7) the excessive use

The Securities

of the Securi¬

1 h

practices of brokers and

margins.

n s

about the role

capital

harmful

debt

common

securities markets.

continually taking advan¬

are

otherwise

ally being converted into equities.

Enlightened American investors

securities

convertible debt issues are gradu¬

tion of business and financial information about corporations

People Are Interested in Canadian Investments

;

public

eral billions of dollars of

Says

of the chief aims of the securities laws is dissemina¬

one

By JOHN DUTTON

tage of the splendid investment opportunities inherent in Canadian
securities.
We use* the word "enlightened" advisedly as many

basic to the American economic system,

are

Securities Salesman's Corner

invest-,

new

capital. The trading markets
exchange and over-thecounter—make possible the existence
of the markets for original

Former Chairman, Securities and Exchange Commission

it has

both

—

and

flow

continuous
ment

Ey EALPII II. DEMMLER*

Thursday, April 21, 1955

Rubin

Brown

207

York

formed

Investors

Fund
at

Edelstein

have

West

City.

Co.

106th
.

and

Marvin

the

Mutual

with

offices

Street,

New

Volume

Number

18t

5422

(1831)

The Commercial and Financial Chronicle

Congress and the government can
do it. A lot of people are often

charmingly naive. But look at the

lacy? In the first place, the stimu-.

who has studied the economic his¬

record. An editorial in "The Wall

lation

tory of the United States can see

Street Journal" for

crease

again and again where this policy

ber

experience. Such a pro¬

would invariably mean an
unbalanced
budget, and anyone

uWhy Doesn't the Government
Do S o mething?/7

begun

exemplified in
the Employment Act of 1948, that when the output of the
economy fails to increase by around $30 billions each year, the
government must step in and do something about it to prevent
unemployment. Says such action would lead to unbalanced
budgets and higher taxes or inflation. Says our standard cf
living does not come to us by government decree or waving

Whenever

there is a let-up in
business, and employ¬
shows signs of declining, a

ment

cry

raised

the

over

threat

look

ment, and de-

pact

are

Indeed,
lows

government

ar.d

This

doing some¬

quire

creased

in gov¬

crease

ernment

ex-

ditures,
particularly
through pub¬
pen

lic" works,

get

the

man •

will

short-lived and un¬

by $21//2 billion.
of Federal spend¬

The increase

has

reaction.
j

neatly

people is at stake.
another question

re¬

works,

public

including

lays for defense and foreign aid,
to an increase in the annual rate
$3 billion by the fourth quarter

of 1955.

aid to agricul¬

An increase in the

$750 million.
a

social

increase

security

broadening and in¬

of unemployment compen¬

crease

An increase in the

building rate
and

public

to 300.000 to

500,000

clearance

slum

assume

that

change

it is necessary to
is

there

but

prices,

that

the

present price level will continue.
But

that

suppose

the

could have

physical output increase

same

expenditure. We know that

some

prices

units annually.

family

gentleman,
these programs "would increase
wage and salary incomes by about
$15
billion
a
year;
consumer
spending by about $16 billion;
farm income by about $4 billion;
corporate profits by at least $2V2
According

this

billion, and savings by about $3M}
billion."

all

with

And

this,

the

budget could be balanced in 1956.
Our
be

national

income

$400

above

would

billion,

and

then
gov¬

ernment revenues would be up

$4V2 billion.
There

trade advocates,

number

com¬

ments to be made about this pro¬

First, it certainly
looks
good. If purchasing power is in¬
adequate,
let
the
government,
gram.

with

its

in and

enormous

there,

that

this

called

analysis,

by such

superficial

goods

though

much

cut

and

name,

can

is wholly

irresponsible.

World

anced

War

who

are

summarized

1955,

pp.

Business

28-9.

Week,

fixed

incomes

incomes increasing less rapidly

unemployment

through

...

the

1933

unemployment figure was nearly
million.

12.9

1939 it

Between

1933

and

went below 7.7 mil¬

never

widespread opinion

they

close to 12 million people in

were

the "armed
to

services, it was down
record low of 670,000.

"From

first postwar
year4, through 1948, the number of
jobless was never less than 2 mil¬
lion.- In

the

1946,

1949

well

was

over

million. By

February, 1950, it was
4.7 million, and for that
a whole it was more than

nearly
year- as

3.1

million.

pact

were

the

idle in 1951

im¬

the

war, there
less than 2 million

not many

"The

under

Even

Korean

statistics themselves help

some of the unemploy¬
ment myths. There is, for exam¬

to shatter

ple,

such thing

ment in American

full employ¬

industrial his¬

tory; not even at the height of the

greatest

effort

war

ever

under¬

law to this effect

in Congress

passed

since there is

in 1946, and

law, why of

course

here

and1

inflation

good

little inflation, like a

more.

touch
always leads to
Let us get down

to fundamentals.
Our standard of

come

the

nor

waving

comes

living does not

by government decree

that

make daily decisions on
they will utilize tneir talents

people
how

acquire what they want. Goods
services pay for goods and
services, or, to simplify it, goods
exchange for goods, keeping in
mind that services are an integral

and

part of this process too. The use
of money is a convenience to ease

People sell goods
which they use to buy
other goods, and all this hocuspocus about what government can
the

exchange:

for money

maintain

full

employment

production cannot change this
fundamental.
If a producer de¬
and

mands for his product more
of others

than

Possi¬

return, he cannot sell.

bly, in

there

were

more
.

than 1.5 million

vidual

men

"The greatest

not "come

myth of all, per¬

Administrations

Roosevelt

perfect knowledge of people,
are bound to make mistakes.
certainly in
and

the

make

is even

economy,

the necessary ad¬

failure to make adjust¬

ments may

intensify

Continued

depression

on page

;

offer to buy these securities.

£2,300,000 Three Year Z%% Bonds Due April 15, 1938

or
a
godsend,
where a person
the picture,- but hardly
tragedy unless it is too

into

$2,SCO,000 Four Year 3%% Bonds Due April 15, 1959

$2,5CO,GOO Five Year 3%% Bonds Due April 15, 1960
$7,500,000 Ten Year 4%% Sinking Fund Bonds Due

Next,
as

$15,000,000

EXTERNAL LOAN BONDS OF 1955

upon

abrupt.

all

solicitation of

Kingdom of Norway

disaster

great

clue

nor a

The offer is made only by the Prospectus.

living,

depending
fits

offer to sell

looks in vain for

one

of these

April 15, 1965

any

to w.ho is going to pay for

Eonds dated

Interest

April 15, 1955

payable October 15 and April 15 in New York City

things. As presented,

to receive, no one to
Biblical injunction is

every one is

The

give.

ignored, "By the sweat of thy face
thou

shalt

3:19.)

Price 100% and accrued interest

bread."

eat

But

(Genesis,
in the rich
injunction no

perhaps

United

States

longer

this

holds.

Perhaps it should
be revised to read, "By the sweat
of somebody else's face shalt thou
eat bread." There are many who
advocate

this,
show

not

the

but
even

Copies of the Prospectus are obtainable from only such of the undersigned and such
dealers as may lawfully offer these securities in the respective States.

other

program

this.

How

the budget to be balanced in 1956?
If

one

ernment

crease.

is to pay, and yet gov¬

expenditures
would

balance

have

his

the

seem

to in¬
impossible

are

budget,

assurance

Someone

that

has

yet
this

Ku!;n, Lceb & Co.

Harriman Ripley & Co.

Lazard Freres & Co.

Smith, Barney ft Co.

Incorporate!

The First Boston Corporation

Blyth & Co., Inc.

Dominion Securities

Corporation

will

pay

$4!;> billion is to be raised by in¬

Drexel & Co.

Easlman, Dillon & Co.

Kidder, Peabody & Co.

creasing the personal income tax
exemption by $200, if employees
are

get higher minimum

of $1.25,

Ladenburn, Thalmann & Co.

if the farmers are to re¬
million more in aid,

Another comment which should
be

made

that

White, Weld & Co.

wages

$750

Kallgarten & Co.

this fliesun

the

April 20, 1955.

Wood, Gundy & Co., Inc.

But

society as complex

Indeed, in a "mixed'*

justments.

labor. ..."

they

difficult than under compe-:

tition to

and

create

powerful as ours, it

could

close to it and that

maintain
full-employment it must control
attempt

make their decisions,

considering the frailties and im¬

New Issue

people, and should not be looked
upon as a national calamity, — a

goods

they want to give

lower

millions

perfectly competitive so¬
ciety, it would be possible to, make
this adjustment easily, so that ex¬
ity ever known. The latter oc¬
changes could take p.ace constant¬
curred in 1953, the first year of
ly with little disturbance. That is
the
present Administration; yet
questionable, for as long as indi¬

This announcement is neither
:

wand.

because

taken, and not even at the height
of the greatest peacetime prosper¬

admittedly,' not

em¬

are

Therefore,
thing.

scarcely felt.

are

something

government can end un¬ Truman Administration could not
employment and bring full pro¬ do it.
duction and full employment. In¬
"For a government seriously to
there is

doubt

little

the

.nation prepared for war, it
declined and by 1944, when there

who

Those

in-'

expendi¬

the new program feel
it at once, and it is a fine feeling.
The costs are
spread so thinlyover
the whole population
that

ployed

that the

deed

There

real.

that.

about

of the pregnancy,

haps, isi that government, any
government, can create full em¬
ployment. We have seen that the

tures

from

comes

government

But

people) or are working towards
pensions and annuities. And this
advocated program can only lead
to more of the same malady.
■
is

priming and make-work projects
the period.- In 1939 it was al¬
most 9.5
million. Thereafter, as

out of work

There

which

lion, despite the extensive pump-

prices, and those who have
insurance (practically all of the

etc., etc., etc

unbal¬

1930's and
World
War II
have brought in
their
train
the
usual
inflation,
with loss of purchasing power to

thus making this
$29 billion figure look silly — as
it
does
anyway.
Indeed, lower
prices
would
mean
a
higher
standard of living for many, many
ard

ceive

1 As

The

of the

budgets

1952
able to deal effectively with

were

price level would provide us with
the same or an improving stand¬

followed

out, it would only lead

during and

1933

program,

not be¬

are

corners

conceivable

followed out, if indeed it could be

March

fi¬

was

issuance of

from

trations

now.

haopen.

I look at this, the

thoroughly convinced

step

resources,

provide what is lacking.

But the

22, 1954, page -6, says in part:
myth is that the Adminis¬

such

ing sold at the prices set, and that
careful
shopping
enables
con¬

does

are

going down, that

are

despite the frantic efforts of fair-

housing

con¬

than

personal

sation.
■

after

which I do not,

However, prices do change, and

gradual increase in the out¬

benefits and

word

War

lines but not in detail

those

by $1 billion.

Civil

The

nanced mostly by the

concerning .this figure of $29 bil¬
lion.
If
we
accept it as valid,

sumers

ing by $3V2-$33/4 billion.
The expansion of natural

ture by

last

war of 1812 in¬
borrowing
and
deficits
with attending inflation and, later,

out nicely at $29

ment

purchasing power.
The raising of the legal mini¬
mum
wage
to $1.25 per hour,
which should increase purchasing

the

opprobrium. The

one

there

Then

the result. "Not worth
is

same

repudiation

volved

mount. Specif¬ at
$28 billion, $26 billion, or $25
ically he advocated:1
billion, would the author of the
The raising of personal income
program be satisfied? This would
tax
exemptions by
$200.
This, involve less increase in
govern¬
would furnish about $4J/2 billion

sources,

virtual

and

tinental"

feels un-Amer¬
question it. "After all, the

employment will

power

com¬

Friday, Octo¬

"One

comes

welfare of the

well known to the
public as an economist presented
the opinion that unless the eco¬
nomic output of the United States
be increased by $29 billion by the
end of this year, the nation's up¬
turn

was

one

output

total

ican

into circulation and pro¬
purchasing power. Not long
a

chronic

billion?

money

ago,

results,

immediate im¬
remote results.
before any one fol¬

planned that

Shaw

Fayette

m o re

vide

was

billion

$29

whdt

in¬

there

worth of in¬ legal tender r currency or green¬
accomplish, backs, as taxation and borrowing
says
must be accom¬ were ? insufficient,
and
this
plished? And how does he know ■ brought in its train inflation and
that each of these parts will pro¬
ultimately., depression. This pat¬
duce what he says it will so that tern was repeated in broad out¬

turns out

bly

cred¬

Revolutionary War with the

through to secondary effects

thing invaria¬

cost of

the

plaint of lack of money. The Con¬
tinental Congress issued the con¬
tinental
currency
during
the

the

beyond,

and

itors, until trade was actually de¬
creased
"rather
than '.increased,

even

colonies

the

debtors

cannot help but
ask", where he gets his
figures?
How does he know that it will re-

some¬

thing."

the

followed

was

(including more
in Massachusetts), at the behest of
of

dees not

This program

could

successive issues in practically all

more,

beyond
to

made that the

"do

Montreal.' This

for

necessity

then

preserve.

unemploy¬
mands

more infla¬
ultimately de¬
stroying what I think he seeks to

tion,

1690

Commonwealth

the soldiers engaged in an
unsuccessful attempt to conquer

and

the

not pay

wand.

the pace of

by Massachusetts in

when

Chicago Undergraduate Division, University of Illinois

colonial times

the

us.

the issuance of bills of credit was

Assistant Professor of Economics

led

has

SHAW

Prof. Shaw takes issue with the proposals,

the fallacy in,
if there is a fal¬

gram

face of all

By FAYETTE B.

lies

where

But

Estabrook ft Co.

The Commercial and Financial Chronicle

(1832)

Elox

Corporation

of Michigan—Analysisr-Geo.
Building, Cincinnati 2, Ohio.

Traction

Dealer-Broker Investment

Recommendations & Literature
understood that the firms mentioned will be pleased
to send interested parties the following literature:

Federal

First

York 38,

N. Y.

Incorporated,

Co.,

ton

Co.,

and

31,

—

Figures

York

New

Clearing

City

5, N. Y.

rities Co., Ltd., Ill

Masonite

120

Pine

Deposits-

Co., Inc., 1 Wall Street, New

Ltd.,

Broadway,

V Tax

New

disadvantages,
"Wellington News"—Well¬
ington Company, 1630 Locust Street, Philadelphia 3, Pa.

Life Insurance Company

First Boston Corporation,

Lithium—Data—Julius

100 Broadway, New York 5, N. Y.

Maier

Co.,

Inc.,

Exchange

York City Bank Stocks—Quarterly analysis of 14 banks
Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.

Over-the-Counter Index—Folder

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones

Averages and the 35 over-the-counter industrial stocks

used in the National Quotation Bureau

yield

and

National

market

performance

Quotation

Bureau,

over

Inc.,

Averages, both
13-year

Front

period

Street,

—

Allied Stores Corp.—Analysis in current issue of
"Gleanings"
—Francis I. du Pont & Co., 1 Wall
Street, New York
issue is

brief analysis of Southern Pacific Co.
list of stocks with Liberal Yield.

Company—Analysis—Edward

Co., 300 North Fourth Street, St. Louis 2, Mo.
American Broadcasting-Paramount Pictures
Review
Ira
Haupt & Co., Ill Broadway, New York 6, N'. Y.
—

American
Hutton

Berkshire

—

Broadcasting-Paramount
&

under

Co.,
vV'-V1'

225

•

East

Mason

St.
Louis
Municipal
Group annual outing. -

Saxton

Co.,

Edison

Waldorf Astoria.

"Weekly Stock Bui-

Corp.—Analysis—J. R. Williston

Office

report—L.

Hentz

Co.—New

Co.

—

report

May

Wells,

Secretary,

South
a

—

Co.,

Beaver

Webester Securities

Spring

meeting

Board

Co.,

outing at the
Country Club.

side
June

2-3, 1955

June 3,

West

(Memphis, Tenn.)

1955 (New York City)

field day at

the Sleepy Hollow
Club,
Scarborough,

N. Y.
June 7, 1955 (Detroit, Mich.)

Club

Bond

Detroit

golf outing
Hollow Golf Club.

Fewel &

Co., 453

—

annual

Plum

summer

Company

Brook-

Bond Club of New York annual

Country

—

,7 '

Memphis Securities Dealers As¬
sociation annual outing at the
Chickasaw Country Club.

Post

Memorandum—Glore, Forgan

Memorandum

(Columbus, O.)

annual
'

Tennessee Gas Transmission

Sulphur

Columbus Stock and Bond Club

Also available is
June 8, 1955

Three States Natural Gas Co.

(White

Street,

Whiteside,

Spring Street, Los Angeles 13, Calif.

memorandum

18-21, 1955
Springs)

May 26, 1955

views—Lerner

of Mary-*

•

Production—Data—Bruns, Nordeman & Co., 52 Wall
Street, New York 5, N. Y. Also in the same bulletin are data
on Westinghouse
Electric, Safeway Stores and National Con¬
tainer.

Spring Outing

Governors.

Street, New York 5, N. Y.

Texas Gas Transmission

Investment Bankers Association

Co.—Memorandum—Chace,

Production

(Baltimore, Md.)

land.

Winslow, 24 Federal Street, Boston 10, Mass.

Co.. 40 Wall

^ v

7 at the Country Club

Square, Boston 9, Mass.

Southern

the

Baltimore Security Traders As¬

4, N. Y.

Loan

Finan-

Societies

Co., 115

Company—Analysis—Harris, Upham

Oil—Bulletin—H.

Signature

Federation

Analysts

sociation Annual

Electric

Cement

dal

May 13, 1955

Street, Akron 8, Ohio.
Glass

;

Hotel Commodore.

Brochure

—

Corporation, 90 Broad Street, New

(New York City)

Municipal Forum of New York

Stone &

conference

York

highway financ¬

ing.

4, N. Y.
Tennessee Valley Authority
Starks

Company—Report—J.

White

June 10, 1955

Discussion
Kentucky Report,
Building, Louisville 2, Ky.—available on subscription.

Tcxota Oil

—

Co.—Memorandum—Piper, Jaffray

South Seventh

Municipal
York

& Hop wood, 115

the

Street, Minneapolis 2, Minn.

10,

1955

the

Country

(Philadelphia, Pa.)
Traders Association

Philadelphia

of New
Outing at

Club
Club, Rye, N. Y.

Investment

Company,

Club

Annual

Westchester

June

5, N. Y.

(New York City)
Bond

22nd

and Beach

United States Plywood
Corp.—Memorandum—Eastman, Dillon
& Co., 15 Broad
Street, New York

Inc., 37 Wall Street, New York 5, N. Y.
Bird

National
%

Japan-U. S. Income

May 8-10, 1955 (New York City)

■

Co.—Annual

Illinois

' *

New York annual Dinner at the

Dealers

Apr. 29, 1955 (New York City)
Security Traders Association of

the New

Theatres—Analysis—E. F.
Company, 61 Broadway, New York 6, N. Y.

Gas

Hotel

Apr. 28-29, 1955 (St. Louis, Mo.)

American Automobile Insurance
Jones

Revisions

Convention. f *'■■■>"■

Riverside

5, N. Y.

Tax

New York

Plymouth

New

Canada—Bulletin—Nesbitt, Thomson
Company, Limited, 355 St. James Street, West, Montreal,
Que., Canada.. ''7;
Ty

and

at the Shamrock

Service.

Company — Annual report — K. C.
Christensen, Treasurer, Pacific Gas & Electric Company, 245
Market Street, San Francisco 6, Calif.
'7 '

and

bulletins

are

(Houston, Tex.)

Texas Group Investment Bank¬
ers Association spring meeting

Haupt & Co., Ill Broad¬

available

Public

anniversary dinner at the

April 24-27, 1955

Southern

Investments

same

Maine

(New York City)

Sheraton Astor Hotel.

Co., 14 Wall Street, New York 5, N. Y.

Suggestions—Suggestions for an investment of about
$18,000—Peter P. McDermott & Co., 44 Wall Street, New
York 5, N. Y.

the

Also

Corp.—Memorandum—G.

Pacific Gas and

Portfolio

Street, New York 5, N. Y.

Owens

York 4, N. Y.

Selected

Maid

North Main

New

Field

Association of Customers' Bro¬
kers

York, Chicago &

Ohio

Place,

Jersey City 2, N. J.

Investment

April 21, 1955

—

Broadway, New York 6, N. Y. Also available is
Lehigh Valley Railroad.

11 companies—

Corporation—Analysis—Kidder, Peabody & Co., 17

Nortex Oil & Gas

issue of

Stocks—Brochure

Co.,

St. Louis Railroad Company—Bulletin
(No. 191)—Smith, Barney & Co., 14 Wall Street, New York
Also available is^a bulletin (No. 190)-on Missouri *
Pacific Railroad Company. >
;
*■'

New

Joint Ownership of Securities—Advantages and
in the current

5, N. Y.

6, N. Y.

discussed

Grace

letin"—Nikko Securities Co., Ltd., 6,
1-chome, Kabuto-cho,
Nihenbashi, Chuo-ku, Tokyo, Japan. Also available is a bul¬

in Japan—Circular—Yamaichi Secu¬

Co.,

6, N.

Mitsui Mining & Smelting—Discussion

Broadway, New York 7, N. Y.'

Securities

York

Street, New York 5, N. Y.

Minute

Shipping Industry—Analysis in "Monthly Stock Di¬

gest"—Nomura

Draper, Sears & Co., 50

—

Company—Report—Loewi
Street, Milwaukee 2, Wis.

Investment Opportunities

York

House

EVENTS

Okla.—Memoran-

Analysis

—

Kellogg

letin

Tabulation—M. A. Schapiro &

Japanese

Company

Holeproof Hosiery and

Insurance

New

—

36, N. Y.

York

Life

way,

Market—Newling & Co., 21 West 44th Street, New York

Distribution

Tulsa,

& Co.—Annual report—W.
Square, New York 5, N. Y.
"

—
Analysis
Congress Street, Boston 2, Mass.

Letter—Fortnightly review of the Canadian Securi¬

Canadian
ties

1955

Grace

Companies of New York

York Hanseatic Corporation,
Broadway, New York 5, N. Y.
'
*
March

Wail

Trust

Co.

Hodgson Houses, Inc.

14 ;

Co., 1033 Thirtieth Street, N. W., Washing¬

7, D. C.

Banks

Trust

Pierce, Garrison,
Wulbern, Inc., Barnett Building, Jacksonville, Fla. ■

Atomic Map, in four colors (revised)—Describing and locating
atomic activity of 97 different companies—Atomic Develop¬
ment Securities

Bank

Iowa Southern Utilities—Review—Ira

Upham

Energy

Wall

National

Gulf

«,

Review—Study—Harris,
Street. New York 5, N. ,Y.

Atomic

COMING

,r..

inroad way, New

150

Knecland &

—

dum—Austin, Hart & Parvin, National Bank of Commerce
Building,
•
Hanover

Amott-Baker Real Estate Bond & Stock Averages—Tabulation v

Baxer

Memorandum

—

Thursday, April 21, 1953

Eustis & Co., -

Co., Board of Trade Building, Chicago 4, 111;

—Amctt,

Sign and Signal Corp.

.-..

summer

Whitemarsh

outing

Country

Club.

Son—Analysis—New York Hanseatic Corporation, 120
Broadway, New'York 5, N. Y. Also available are analyses

of Chesapeake Industries and Polaroid

Corp.

Bonanza Oil & Mine—Report—L. D. Friedman
&

Broadway, New York 4, N. Y.

June

NSTA

Notes

15-18, 1955

(Canada)

Investment Dealers
of Canada
the

Co., Inc., 52

Association

39fh annual meeting

Manoir

Richelieu, Mur¬

Bay, Quebec.

ray

Bullock's

Inc.—Analysis—William R. Staats & Co., 640 South
Spring Street, Los Angeles 14, Calif.

Carpenter &

Co.,

Walnut

Inc.—Analysis—Boenning

Street Philadelphia
2, Pa.
Also
analysis of Rockwell Manufacturing Co.
Central

Wall

Fibre
Products Co.—Memorandum
Street, New York 5, N'. Y.

Chicago,

Milwaukee,

St.

Paul

& Co.,

available

1529

co..

Pacific—Analysis—Vilas

Manufacturing Co.—Memorandum—Shearson, Hammill
Co., 14 Wall Street, New York 5, N. Y.

summer outing on
try Club, Whitemarsh, Pa.

1955

(Mackinac

la-

National Security Traders Asso¬
ciation annual convention.

16-17

(Chicago, HI.)

Investment Bankers Association

Fred

Kramer Forms Co_

Kenny, White Co. Formed

HIGHLAND PARK, N. J.—Fred
Kramer is conducting a securities

White

business from offices at 126 Mont¬

has

Street

gomery

under

the

firm

M I N E O L A

been

N. Y.

—

Company, Incorporated,
formed

with

offices

295

Company.

DEPENDABLE MARKETS

of Fred Kramer

Sept.

Member

21-23,

1955

Association

(Denver, Colo.)
Stock

Exchange

Firms meeting of Board of Gov¬
ernors.

Bonanza Oil & Mine

Co., rta.

Preference

meeting of Board of Gov¬

Kenny,

Willis Avenue to engage in a
securities business.

name

Fall

ernors.
,

fjoratrot Securities

Steamship Corp.

Common—Participation

their

11-14,

land, Mich.)

Association,of Philadelphia will hold
June 10, 1955, at the Whitemarsh Coun¬

Sept.
cohu

Hickey, 49 Wall Street, New York 5, N. Y.

Standard Fruit &

Sept.

ASSOCIATION OF PHILADELPHIA

The Investment Traders

Eaton
&

INVESTMENT TRADERS

Producing Quicksilver Mine

N.A.S.D

Broker and Dealer

Primary Markets

Trading Markets Maintained
Material and Consultation
on

Troster, Singer & Co.
HA

2400

Members:

Security

Dealers

Association

Trinity Place, New York 6, N. Y.

Report

request

Japanese Stocks and Bonds
without
NY

376

obligation

L.D. FRIEDMAN & CO. Inc.

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

BOwling Green

9-0187

Head Office Tokyo

DEMPSEY-TEGELER & CO.

Broadway, New York City 4, N. Y.
,

Telephone DIgby 4-OS60

•

Number 5422

181

Volume

activities of

Private

—

And Atomic Energy
By FRANCIS K.

Let

Mentions dangers of secrecy and the under¬
technical capacity of foreign

and government.

estimation of the scientific and

readily
accessible; (2) some information now classified should be
declassified; (3) creation of libraries of information for classi¬
fied information, and (4) creation of formal procedure for
providing access to people and plants.
Urges: (1) unclassified information be made

countries.

Atomic

energy

antedates

—

sources

government effort.
The
Manhattan Engineer District and
the Atomic
Energy Commission

far—the

have

been

means

of har¬

nessing for the

and making

note

that

also

were

have

operate effectively in the Atomic
field.

Lrealize,

realiz^long
problem of

ago,

enormous

and that there

The

that this is

are no

tion

essential

establishment

the

successful working relationship

between

and

the

Com¬

appearing before

you

complexity,

cepted if

re-examination

information

its own plans.
into

atomic

approval; knowledge of essential
operating information requires se¬
curity clearances, which are diffi¬
cult to obtain; special nuclear ma¬
terial can be obtained only from

course,

can

the

state

the

of
somewhat limited in what
business

energy

usefully

am,

by the fact that
not as yet

say

Commission

has

issued the regulations

implement¬

system

needed

important reasons. First,
new
companies into

attract

atomic business; second, to
those

engaged
realistic

make

progress.

permit

in atomic work to
plans

will

for

briefly

each of these points and

future

discuss

their im¬

plications for the security system.

Act. We are not sure,
The achievement of the goal of
public large
the government, and can be dis¬ for example, on what basis licenses
widespread participation by pri¬
segments of
will be issued, or what restrictions
posed of only to the government,
vate industry requires free access
privately de¬
upon licensees.
both at prices fixed by the gov¬ will be imposed
to large quantities of information
veloped knowThe appearance of the regulations
ernment.
about many aspects of the atomic
how.
should answer
many
questions
I am under no illusion that the
In our case,
energy industry. Bars to the avail¬
now hanging in the air. There are,
successful operation of the "mixed
for example, I
ability of information about atom¬
economy" envisaged by the 1954 however, two really basic issues ic energy cannot but operate as
know that we
very
nature of
Act can be easily achieved. Quite inherent in the
obstacles to entry into the indus¬
were
busily
the reverse. It will not be an easy the atomic energy business. These
try. Information should be made
engaged in the
questions are of such fundamental
job, for it is not a familiar one. To
available not merely to those who
atomic energy
make
a
success
out of such a importance that they will be with are
field o v e r 20
already interested, but, per¬
us for some time.
The first con¬
unique economic relationship will
haps even more importantly, to
years ago. We
cerns industry's need for informa¬
Francis K. McCane
require a vast amount of intelli¬
those who are not yet interested,
worked for the
tion and the implications of that
gence, patience and good will on
for
information
is
M a n h a t tan
required to
the part of everyone concerned. need for the security program. The stimulate interest.
Engineer District, we have been a
We at G. E. will do our best to second involves the scope of the
contractor of the Atomic Energy
To achieve the goal of wide¬
licensing powers and their effect
make it work.
Commission from the very begin¬
on
the development of a private spread participation, access to in¬
ing the

new

and

very

now

are

ac¬

involved
in
developing
peacetime uses of atomic energy.
Throughout all of this period, our
incentive has been the firm and

Framework for Operation

tively

one

tant

unwavering belief that American

would
make a major contribution to the
public welfare through research,

industry should, could and

the atomic field we have come to

appreciate the invaluable role that
is played by your committee. The
the

atomic

energy

in¬

dustry is affected by a large num¬

imponderables and uncertainties. Many of the forces which

ber of
•

will shape

are

control

the course of the future
magnitude beyond the

of any

engaged

of the companies

business.

the atomic

Confronted with these

uncertain¬

know that
a permanent legislative
body of
the high caliber of the Joint Com¬

ties, it is reassuring to

mittee is fully

conversant, and ac¬

concerned
with
atomic
problems. It is encouraging to us

tively
'

that'' the

responsible

group <

operating framework within
which government and industry
can work together effectively. The
Commission's regulations must fill

general outlines

the

by the Act. Even
tions have been

seek

and

Anyone who has made a

study of the atomic energy

completed in any final
There must be a continu¬

ing re-examination and redefini¬
tion of the relative roles and re¬

be carried

government mo¬

nopoly.
Industry must recognize
the indispensable role of the gov¬
ernment and the government must

recognize the equally essential,
independent yet co-operative, role
which industry must play. Under
the
to

new

Act, industry is expected

play an increasingly active, in¬

dependent role in atomic develop¬
ments,

employing

its

own

re-

job of re-examination

This

Energy, Washington,

D. C.

offer to sell nor a solicitation

in the new Act, as we
it, is the idea that the nature
and character of industry partici¬
pation must change. Private com¬
panies will no longer merely be

see

contractors carrying on activities
prescribed in detail by the Com¬
mission.
They are now expected
to

their

•

par

terms of
the

access

to information and

security system.

Under the

Contract

system the

planning of practically all atomic
activities was highly centralized.
It was primarily the job of the
Commission. The Commission, of
course,

full knowledge
the atomic busi¬

possessed

all aspects of

and was, therefore, properly
carry on the planning

ness,

equipped to

Private contractors who

function.

generated much of the information
merely required the information
from other sites necessary to per¬
form

How much

specified task.

information

that

required, varied

with the nature of the task.

erred

sion

much

too

the

side

information to

shall make con¬

the

Atomic

and

Energy

problems

Congress.

its

industry is expected to plan
own

future

course

Continued

now

has

a new

role

•

Company

value)

offering to the holders of its outstanding Common Stock
officers and employees the right to subscribe for these
shares, as more fully set forth in the Prospectus. The Subscription offer
will expire at 3:30 P. M., Eastern Daylight Saving Time, on May 2, 1955.
The Company is

Subscription Price $36 a Share

underwriters may offer shares of Common Stock at prices not
Subscription Price set forth above (less, in the case of sales
to dealers, the concession allowed to dealers) and not more than either
the last sale or current offering price on the New York Stock Exchange,
whichever is greater, plus an amount equal to the applicable New York

The several

less than the

commission.

Copies of the Prospectus may be obtained, from only such of
signed as may legally offer these Shares in compliance
the securities laws of the respective States.

the under'
with

Commission

as a

regulating

In this role it is under a
continuing obligation to keep its
administrative regulations both
agency.

specific and flexible enough to as¬
sure maximum progress. It is very
important that the Commission
recognize the responsibilities
new

flow

role

agency.

from
a

its

public

unfamiliar

regulatory

Its actions will affect the

MORGAN STANLEY & CO.
G. H. WALKER &

A. M. KIDDER &
April 18, 1955.

CO.

COGGESHALL & HICKS

MERRILL LYNCH, PIERCE,

GOODBODY & CO.

atomic

page

AEC's New Role
The Atomic Energy

con¬

tractors.

and to certain of its

Stock Exchange

giving

its

and

tinuing studies of the activities

Even

here I do not believe the Commis¬

■

several

This,

too, has some clear implications in

offer is made only by the Prospectus.

(without

and to

own,

exercise individual initiative.

Common Stock
1'

the

by encouraging
widespread
participation.

business

of an offer to buy any of these

Peninsular Telephone
*

will

merely

158,203 Shares

therg is a

That

levels.

Joint Committee

which
by
Mr. McCune to the
Congressional Committee on Atomic

♦Statement

Joint

base

business.

serious ognized in the Act itself. There is
indus¬ the general requirement that "the

through the active co-operation

framework of

not

the

of accumulating ex¬

Commission
relating to the
development, use, and control of
of the government and of business.
atomic energy." In addition there
Under the 1954 Act it is unrealis¬
the
specific
injunction that
tic to think in terms of complete is
free enterprise.
It is equally un¬ hearings—of which the present are
be held
during the
desirable—as the 1954 Act has rec¬ first—shall
ognized — to proceed within the first 60 days of each session of the
of atomic energy must

Shares. The

sense.

does

continuing legislative role is rec¬

try has had to accept one incon¬
trovertible fact: the development

standings will be kept to a mini¬
mum.
This is a job which can
never

Act

broaden

■

This announcement is neither an

specific so that conflicts based
uncertainties and misunder¬

different

Increasing Role for Business

ment exercise?

perience and changing conditions.
Yet at the same time, the frame¬
work must be sufficiently clear
on

clear that after such a stuay many

tionship can never be static.
be sufficiently flexible

and

who

Moreover, it

planning role should the govern¬

the

must

take account

to informa¬

number

operating rela¬

redefinition must go on at

its actions.

In a new

rapidly developing field,

framework of the

access

be¬

companies

Inherent

restricted to

has

made.

may

atomic energy business.

new

atomic

been

provided

after the regula¬
issued, the job

complete.

not

will

formation cannot be

ac¬

Industry Initiative
The

those who have firmly decided to
exercise initia¬ enter the atomic business. Respon¬
sible management is not likely to
tive shall private companies have;
make
serious decisions
until a
conversely, how much of a central thorough and wide-ranging study

much freedom

for sponsibilities of government and

legislation is so receptive
the views of those affected by

atomic
to

of the

development and production in
this new field.
As one of the first companies in

future

well recognize, the pas¬
1954 Act was simply
step—though a very impor¬
one—in the development of

As you
sage

industry.
Both questions
raise the same central issue: How

atomic

the

and

enter the

„

ning,

correlation

number

given

are

tion

direct

the

tween

who

must

wish to obtain wide¬

atomic

information than

available

presently

for two

comment

requires government

the

security

and

is required. More

mission.
In

well

reason

This is

use.

which

participation, for there

spread

today

industry

tp productive

consequence

easy answers.

which may not put that informa¬

must have

you

good
instances, information will
been
given to
companies

many

adequate information in order to

Yet under the new Act entry

the industry

merely

Thus

well turn out that, in

may

I have become increasingly con¬
cerned about the need for more

decide that atomic

is not for them.

energy

why this is so, is sim¬
sion plans to hold industry ad¬
ple enough. At bottom, there ap¬
visory conferences to discuss drafts pears to be a conflict between the
of its proposed regulations and to information
requirements of in¬
submit
those
drafts
for
public dustry and the demands of the se¬
comments.
We are looking for¬
curity system.
ward to this opportunity to assist
It seems to me that to achieve
in the formulation of the regula¬
the goal of widespread and effec¬
tory structure. This kind of in¬ tive
private industry participation
terchange of ideas is absolutely

effort, Mr. McCune points out development of atomic energy
mast be carried on through the active cooperation of business

Not

companies may

Information
'

pleased to learn that the Commis¬

record of private enterprise in promoting
of atomic energy, which, he claims, antedates government

Afier recounting the
use

Commission.

themselves but the
decisions, interpretations and rul¬
ings relating to the regulatory
system should be made public.

Electric Company

Availability of Atomic

...

segments

the regulations

McCUNE*

Products Division, General

all

reason

the

Vice-President and General Manager
Atomic

whole industry. For

of the
new
industry must be kept fully
informed of all regulatory actions
that

Enterprise

(1833)

The Commercial and Financial Chronicle

FENNER & BEANE

FRANCIS I. duPONT & CO.

The Commercial and Financial Chronicle

(1834)

We cannot go

Are We Overbuilt?

paying a high price a few
years hence in terms of a badly
From

personal view, the
most distressing circumstance in
the present situation is maa-man
financing. This is the mildest ac¬
ceptable term I can use to de¬

Nutrition, Cornell University

Prof. DeGraff reviews data relating to increased
and family

population
slackening

formations, and though predicting seme
likely in the late 50's,

an un-

—

casts
sus,

experience for

tween

any

single

year

prior

War

ris-

trend

By the end of
war

icit

had
Herrell

accumu-

row?

Where
stand

Has the current boom elim-

i oated the deficit?
<

housing

lated.

DeGraff

det-

with

-led

students

Are

overbuilding,
of

threatsome

situation

the

have

warned?
The

question

housing

construction

and

laand

deis

rates

vital to lenders, builders—in fact,
to
the whole national
economy,

*hjfi

answer

(1)

U;uuons:

•normal
tiie

hinges
the

actual

rates

past 25 years,

the

vs.

building

over

(2) houscompared with
ana

ing construction
Household
formation.

Botn

ap-

entirely

the basis of recent popula-

tion projections

by the Bureau of
the Census, and still using the
4.5 units annually per 1,000 persons,
housing
construction
between

1960

ceed

units

and

the

1975

rate

could

pro-

This figure is startling compared to our building experience of the past—but the popyear.

ulation
This

outlook

also

calculation

startling,

based

was

projected population of

213

mil-

lion by 1975.
Some

this js not

for

Whatever

provide,

may

riding

good business, and not
housing industry that
high

prolonged

to start,

trouble

have called attention to

between

ance

equity

all

borrowers'
No

disruption

wipe out the thin cushion and

can

result in distress sales.
a

the

think

And only

small number of such sales

unsettle

the

housing

community,

any

matter

can

market

who

has guaranteed the mortgage,
Directors

and

officers

lend-

ing institutions that participate in
such financing are contributing to
a

potential

break

values

and

disruption of the whole housing
industry
in
their
communities,
They shirk their responsibility to
the

warnings
of
potential
to the housing industry
unbal-

construction

famhy formation. In recent
housing has been erected

and

years,
more

know why the Republican organization is
steadily disintegrating, why the Democrats are continually making
gains, notwithstanding that the Republicans are in control of the

industry each time they apsuch a loan. It is painfully
obvious that this is no time to
feed
the
boom
with
nothing-

wn-and-$10-whe

you.

Such

turning

n-we-c a

tell¬

"owner" is bait for
a bust.

boom into

xhe

among

ntially for each
the

total

1,000

persons

national

population.

period

alcnnnnn

vpar<!

represent

near

half-century of

The

experience.
var\o'\

but tt does

actual

enormondv

aver-

In 1925 and 1950 it exceeded

age.

3 dwelling units per
"

1,000: in the

»i

Depression it fell
1,000.

below

Great
per

has

rate

from this

period 1930-44, the actual
of building was 2.4 per 1,000,

rate

while

1,000.

noniilation
The average population

the
in

1945-54

first
the

period

second

million.

that

units

Tieen

The

is «
6.3

waq
was

131

was

period

npr

in
m

million;

151

was

number of dwelling

normally

constructed

the

1930-44 equalled

actual number

would

have
years

8,842,500; the

built amounted

only 4,731,500, or a deficit of 4,110,000 in relation to "normal."
The

that

number

normally

constructed

dwelling

units

have

been

would

the

ten-year

pe-

riod of 1945-54 equalled 6,795,000.
The

actual

totaled
excess

the

number

9,623,800.

constructed

The

ten-year
of dwellings in relation to

"normal"

amounts

rate

building
dwelling

2,828,800

units.

formation is used to inclassified as families has been
creasing over the years.

built at

have
substantially above

rate

the 45-year norm, adding 2.8 million houses more than would have
been constructed
rate of

building.

at the

But

"normal"

longer

pe-

riod of review-the 25 years since
1ft9.

...

1930—tells
this basis
inated

the

during

different
still have

deficit

the

1930's

story.

not elim-

construction

and

the

war

•Excerpts

LeT^e

from
the

1955

address by
Management

New6 y~V Stafef

p. c., April 12, 1955.

Prof.
Con-

THO

oncii!?

r*min T

exceeded

million.

policy

iciiuii g

in-

were not high on an 8-yearboom.
We should treat our

households

IUKJ

MIT

families

by 5.7
housing, the

Chicago Analysts to Hear
°

„

CHICAGO, 111.—Dr. Philip M.
*ard count since each household, Hauser, Prolessor of Sociology at
whether or not it is a family, oc- the University of Chicago, will adcupies

are

the

impor-

dress the tocheon

dwelling unit.

From 1930 to 1955

Investment

total nf 17

796,000 households Were formed,
In this same period, 14,355,300
dwelling units were constructed.
This indicates a deficit of 3,440,700 units.

meeting of the

Analysts

Society

f^g^t their,luncheori meeting
\°
^om
Cars^n
pirJp
Co
Dr Hauser will
^ I
tIZZ Ind
speak on Population Trends and
of

Judging from the history of the lnvestmeni*
past building cycles and the present vigorous condition of
the
Harry

our

than

postwar increase in birth

ratos.
«

Slackening Is

Some slackening

*.
in

this

almost

La. —J.

household

is to get

ness

group

How
we

much

when

the

crops

be¬

intervening let-down

have will

ishly

doubt

Bank

influ-

Building,

(Special to The Financial Chronicle)

PASADENA,

Calif.—Ingram P.

Walters has become affiliated with

far and h°w fever- Lester,

Ryons
extend the current boom. Building.

Co.,

Security

This is

one

all live happily

can

FOA

ects

ali

has

California

citizens, a couple
grain storage constructor

in mind building
storage proj¬
Asia, and the California group

over

decided
the

of the government busi¬

some

decided they would like to get
grain storage construction business.

the

they would like to help mankind to
of getting the contracts for some

Carlisle

Bargeron

extent

of this work.

They spent several thousand dollars working up the designs,
project of building grain elevators in Pakistan. They
finally came to having the contract in the bag, so to speak. They
seem to have offered the best
bid, all things considered, and FOA
etc. for the

Administrator Stassen

was

for them.

Then, it seems that a couple of Missouri companies which
had been hogging this FOA
business, began to whisper in the ear
of that great
statesman, Senator Symington of their State. The

Senator, who although only a few months ago, had been pub¬
licly beating his breast about the alleged abuse of suspected Com¬
munists and fellow travelers at the hands of the

mittee,

this

turns

now

uses

behalf

McCarthy com¬
completely around and

committee

same

the

two

companies

his

state

against

the

group of California citizens.

Charging fraud and collusion on the
part of the California group he proceeds to
develop all the innuendos which he has in the
past bitterly criticized as an exclusive
McCarthy tactic.
At the end

but

has

of the

created

hearing he has proved
much

smoke

contract from the California
group,
can find no
wrongdoing.

This constitutes
ness

men

his

Senator

political

attack

Symington

the

that

none

Stassen

of his

charges

withdraws

the

although insisting he, himself,

Symington's contribution to the busi¬

state.

own

But the affair

bigger than the California group. It was a
Republican administrator so this gave

was

upon

stature

of rendering a
party political service in
serving his constituents.
The smearing of
"innocent citizens," as the expression
goes when Communists and
their ilk are being
pursued, becomes secondary.
The greater
target is the Republican administrator Stassen.
The California
group just gets caught in the middle.

addition

that

It so happens that one of those
whom Symington tried to embarrass, W. G. Herron, head of the California
group, is highly re¬
spected in Washington.
1.
in

The point I am trying to make is
what do the Republicans do
the face of this sham attack on a
Republican official and upon
group of citizens who, I

business

understand, are decent, substantial
presumably, therefore, conservative Repub¬

and

men

licans.

They do absolutely nothing. Through sheer
laziness
they do not even attend the hearings which

developing tc

Symington

his

ends.

own

either Republican Stassen
This attitude

dis¬

interest

not

are

concerned

about

the

laziness

They

group of California citizens.
"don't give a damn" is
apparently

seeping through the Republican organization ranks
country.
In the first place, Republican

throughout the
organization workers
gotten the patronage which they
expected and which is
rightfully theirs. Secondly, Republican business men
haven t

contributed

who

richly to the party coffers find in all too

stances that they are subjected
California group received.
a

of business

group

the

men

same

with

have

many

in¬

treatment which the

ideas

such

the

Cali¬

had, is subjected to their experience
you can im¬
agine how they feel toward the Republican
Party. Nowhere could
they find a Senator to go to the bat for them in
what wa* an
obvious political squeeze. Not
only was there
bat

group

for

nobody to

them,'there

was

Republican

Stassen.
It

remained

for

Symington,

their

investment

without

and

dissent

embarrass

to'the

bat

for

from

(Special to The Financial Chronicle)

CHARLOTTE

C.—Katheryn

Nelson, and Mjchael E. BermAn

have

become

Hornblower

with

associated

with

Weeks,

Both

Courts

Johnston

were

with Grover C.

Mr.

Harris, Upham Adds

Berman

& Co.

(Special to The Financial
Chronicle)

LOS
A.

Hornblower &

Fillbach, 226 E

Olive Avenue.

Manager of the local office, and
prior thereto were with R. S. Dick¬

have

Chronicle)

BURBANK, Calif.—Edmund
Delaney has become associal

Chandler

Grover Fillbach

(Special to The Financial

formerly

Co.,

John J. Hanes

them.

Joins

Hornblower & Weeks

son

the

Berman, Nelson Join

Democrat

Missouri to
That he was able
the Republican side is
a commentarv
the seediness to which the
Republicans seem to have
returned

wreck
to do

Building.

With Lester, Ryons

by Harold Stassen, is
building grain storage

others,

The

per- Lionel J. Seise and W. S. Slocum

inevitably Louisiana National

little

of the best ways a business man can make

of contractors and

Nowlin, William J. Owens,

£av.e been Securities Corporation,
added > the staff of
Federated

this

world."

money

C. Garris, Sr., Hubert H. Mizell,

listen

Well, quite naturally in these days when

Addison, George P. Baker, W. H.
Dickerson, Paul Farmer, Marie T.

will be followed by another boom
a decade or so ahead
oversize postwar baby

"tree

Ferrer a, P. S. Gaharan, Jr., Boyd

wise> in the late 1950s and early
But

ROUGE,

Tikelv

construction is quite likely,
go's.

BATON

then

government,

of "shoring up" the economies

foreign countries

When

P. Talcott

the

FOA, headed
other things

many ways

fornia

housing
market,
the
evidence
Harry P. Talcott passed away
strongly
suggests
that
several
April 18 at'theage"of*73. Mr. Talyears
of high-level residential co^ was senior
partner of Talcott,
building are ahead. Coupled with p0tfpr &■ Co New York Citv
this, and definitely strengthening
'
\the outlook, is the remarkable
Federated Securities Adds
current upsurge in population. It
is now obvious that we are ex(Special to The Financial Chronicle)

mere

hAiico_

By 1954 house-

In terms of

Wa^hYnglon" enced by how

lending

the g00d health of housing or to

In 1930 old

gin to enter the housing market.
DeGraff

AUj

,th^f Yu"6 ^m°reJh°USe" responsibility with corresponding
"old?, than faml lea. a^ording to seriousness.
the Census count.

periencing something

For the past ten years we

for

dlcate the
.gmsto disaster. marketis a
contHbute uohrot
This
,The number of households not much more serious time than if

holds

In the

iespoilbiUliiLy

uTed eThV?o Tustata

trlied1 a17''normaF^rate o^buhdin^

is"subject"o challenge,

responsibility

branch

elevators in foreign countries.

rta^well'have' Lmewha^longS

new families have
The housing industry need not
juay well nave somewhat longer been established. Obviously, such bust—at least in the near future.
Over
the
nast
45
vears
the 5
situation cannot continue in- It has current strength and vigor,
-vermre
rate of construction hat
de(™liely- However, both the di- and potential good health for some
'tren 4 5 n»w' dwelhng units an- u6f°" ^ th5 degree °J ?ny Ti time. But those of us who have
been 4.5 new dwelling ur X an
balance depend upon what

story.

prove

want

you

evolutive

and

legislation
good

gov-

to protect their

risk.

amount

million

1.3

the News

By CARLISLE BARGERON
If

de-

are

the

upon

5,120,000,
or
1,024,000
a boom.
With no equity
from now until 1960 without iong maturity builds
building
beyond
the
long-time t00 slowly for either
norm
of 4.5 units annually per
or
lenders' protection.
1(G00 persons.
than a slight economic

two investi-

would

pending

ernment guarantee

year,

that started in

tue

million.

Many lenders obviously

build

construction

the late 1930

average population beand January, 1960, will

now

building

inter-

rupted,

the
170.5

Thus, "normal"
give us 3,836,000
dwelling units during the next
five years. Add the shortage from
1930 through 1954 and we could

World

1949.

ing

one

by the Bureau of the Cen-

precedented

Ahead

scribe

there

says

Washington

"nothirig
clown
and
30
years
to
pay."
Department
of
Commerce reports show that to
nay be another boom in a decade or so. Holds mast distressing
an increasing extent veterans are
circumstance in the present situation is "mad man financing,"
"purchasing"
housing
with
no
and scorn the "nothing-down and thirty-years-to-pay" guaran¬
down
payment
and
maximumteed VA loans. Criticizes lending institutions that participate
length maturities. One out of four
in such financing.
VA-guaranteed loans in 1954 was
closed
with
no
down
payment,
How much life remains in the years.
We still lack about 1.3 compared with only 7% in 1953.
housing boom? For six consecu- million dwelling units up to the Also, two-thirds of VA loans last
f we years we have built in excess end of 1954.
year
had maturities of 25 to 30
c2 a million new dwelling units a
On the basis of population fore- years.
h household construction is

year

From

unsettled market.

Professor of Food Economics

School of

with¬

now

out

HERRELL DeGRAFF*

By
Babcock

hog-wild

Thursday, April 21, 1955

....

also

joined

Weeks staff.

the

ANGELES,

Lehn

and Theodore G.

staff

has

been

Harris,

Calif.—Os<

added

Upham

523 West Sixth
Street.

Volume

181

Number 5422

The Commercial and Financial Chronicle

(1835)

should

The Ciisis in the Textile Revolution

about the

maintains

textile

situation

critical

tail,

The
used

revolution

word

has

frequently to describe the

textile

situation

that

Actually,
word

too

wwm

not

strong.

You

know

well

not

competing
should for

r>(l)''Sell
and

•.

revolu¬

(2)

tionary devel¬
have

been

what,

been

years.

have
W. Zelomek

come.

not

ters,

yet

ahead

Finishes

that

ago

years

Old fibers like cotton

are

constantly, to
unrecognizable extent.
fabrics

Blended

past

being

with

have

every

fabrics

new

can

''
is
of

,;.v

being

concept of
down,

broken

textile fibers

our

in non-woven

are

fabrics, and

used

even

paper.
I

could

this

continue

definitely. There is
A

list

need to do

the

well

mention

here

turn

the

out

this

textile

depression.

revolution.
It is

because any point

any

tion is critical to its outcome.
:

It is

textile

industry,' despite its new
playthings and techniques, has op¬
erated
unprofitably in the last
year or two.
a

critical point because the

industry

has a chance now to
period
of
reasonable

It is

create

prosperity for itself.
It

critical

Textile

Profits

in coming down
here, to this very important meet¬
ing, is to talk in practical and
realistic
terms, about how you
My

purpose

people

textiles and

better profits.

make

I have

ing

sell

can

selfish interest in see¬

make more money, be¬
people like you are my cus¬
and my clients. I can as¬

sure

that

you

steamed

you

am
are

just
as
about the

opportunities for a bigger and
more
profitable textile business,
because
you
are
the people to
whom I sell most of my services,
special research, and my consult¬
ing

advisory

and

work.'And

have found from long experience
that it is hard to sell you
unless

you

You need

are

bad,

but

you

won't buy them unless
good. What's good for

simply
times

making money.
services even more

are

times

when

anything

are

real
*A

opportunities that lie ahead.
talk

harlotte

Mr. Zelomek before the
Club, Charlotte, N. C.,

Textile

prii 11, 1955.

unit

vol¬

people
quality

better

have

and

This

items.

able
what

believe

estimate

for

can

unit

changes

don't

astray

make

portant, because
the
industry to

the

loss
of
position
entirely the fault of the

But

extent

some

was.

Most of the gain in textile and
apparel dollar volume came from

rising costs,
industries.

which

affected

all

trading

up. I have no objection to
bigger unit volume. But you lost

very

believe

making

tion

estimate

for

fectively in the future what
have

popula¬

have a reliable guess about
the increase in the unit volume of
we

textile
next

production

decade.
to

out

comes

during
figure for

My
be

prices

about

stable,

the

extent

increase
about

dol¬

Then

our

FLA.

from

Southeast

increase in dollar sales of 15%

First

John

—

conducting

business

gain in unit sales of 35%, and

MIAMI,

Weerts

estimates will balance. Moreover,
a

the supply always exceeds

John R. Weeris Forms Co.

55%, to the

15%.

means

if there is to be

up,

you

less

sell

the demand.

that there will have to be further

sales

done

—

which

this

35%.

this

the

effectively in the
bigger volume of
better quality, and higher priced,
fabrics
and
garments,
and
a
smaller volume of the staples for
past

and

year,

and

sold at ruinous¬

To make the money you should
make, and to stabilize your prof¬
its, you will have to do more ef¬

far

that

1953

were

ly low prices.

for

1954, despite the fact

that fabrics

Per

estimate

half

first half of

slowly, and
will

part of that unit volume in the

second

good

volume.

1965. Combine this with

lar

mean

pre-war

relative

not

industry.

dollar,
this
will
bring

pondingly large. With prices sta¬
ble, however, what part of this
increase will be due to bigger unit
volume, and what part to further
trading up?

trading

expen¬

the

from

consumer

prices will contribute noth¬
Apart from that, the industries
ing to this gain. Naturally if prices greatest gain was in unit volunrfe,
least gain was
go up, the gain would be corres¬ •and-its
through

buy

from

This
was

that whole¬

assumed

industries

sale

that

the. fact

were

by trading up. And it is very im¬
.

income

further increase in cloth¬

With

total sales volume

increased

what

see

the

This

securities

offices

245

Street.

;

This is not

little

offering of these Shares for sale,

any

22%,

even

ume.

that

amounted

offer to buy,

or. a

solicitation of

offer to buy,

there had been

in prices

600,000 Shares

in unit vol-

How

this

was

brought
it

did

extent

improvement in

what

about?

involve

what

rics?
volve

than

calculations,

better

did

extent

fab¬

in¬

better

workmanship on the
increase of 176%.=; part of the cutter?
year,
however,
they
Unfortunately, the cutter seems
to only 6.5%
of total to
have
benefited
more
from

$16 billion,

<y an

of such Shares. The offering is made only by the Prospectus.

sales increase of about

increase

By 1953, consumer expenditures
clothing and accessories had

Common Stock

income.

(Without Par Value)

this

This merely
we

produce

quality

1939

from

1953 would have been enough, ac¬

cording

that year.

trading

trading up than the mill.
This is a problem the mill and the

demonstrates what

all know. As income

distributor

textile

increased,

with.

consumers

contend

lars

will

When

have

the

cutter

finds that the

for

spent more actual dol¬
clothing and other tex¬

his

spending for clothing and textiles

public is trading up,
is to put on, added
or
trimmings, or to

decorations

8.4%

spent

income

Now, I
1953

Nevertheless,
basic

have

been

items
a

sumer

family with
$10 thousand,

that

worth

problems is to con¬

retailer

vince "the

the

con¬

higher price.

come

Sales

and

won't

of the several under'

are

qualified to act

legally be distributed.

The First Boston Corporation

Glore, Forgan & Co.

Ilarrimart Ripley & Co.

Lehman Brothers

Incorporated

Merrill Lynch, Pierce, Fenner & Beane

Smith, Barney & Co.

as more

high income
percentage of total

tell

not claim that there is

I do not
.

see

expansion. But
anything to make me

White, Weld & Co.

Schwabacher & Co.

Elworthy & Co.

William R. Staats & Co.

American Securities Corporation

A. C. Allyn and Company
Incorporated

A. G. Becker & Co.

Brush, Slocumh & Co. Inc.

Central Republic Company
(Incorporated)

Hemphill, Noyes & Co.

Ilallgarten & Co.

Hill Richards & Co.

Irving Lundborg & Co.

Mitchum, Tully & Co.

believe that the limit to economic

expansion

has

expanding at

calculate, from' our study of
family income and snending pat¬
terns, that the textile industry

economic

find

that

W. C. Langley & Co.

Corporation

Incorporated

limit

sales
should have been $5 billion higher
in 1953. A part of that "loss" was
to be expected. But not all of it.
you

Stone & Webster Securities

income.

medium in¬

the
income
spent
on
textiles
and
clothing is bound to go down. *
So

Dean Witter & Co.

Volume

Prospects

families become

families,

any

may

Blyth & Co., Inc.

Goldman, Sachs & Co.
Textile

year,

families, and

Prospectus

level.

even $5
or
$6
What .are the prospects for tex¬
to spend as big tile business and sales
during the
a
percentage of this income on next five or ten
years?
clothing as is spent by a family,
First of all, I believe we can
making only $3 or $4 thousand a
expect a further expansion
in
year. As more low-income fami¬
activity and consumer
lies
become
medium
income business

thousand

be obtained from

they ask for a better quality in
fabric, the cutter will give it
to them; and we will have a big¬
ger market for this type of fabric,
and more trading up at the fabric

full

income of $8

may

only in slates in which such, underwriters

dealers in securities and in which the

better quality fabric

little

and

Copies of the. Prospectus
writers

the

$5 billion higher. You can't expect
a

your

the fabric is the
any
garment.

element

One of

not going to tell you

sales of these

should

expensive fabrics.

clothing and accessories in 1953,
as they did in
1939, total sales of
these items would have been $5
billion higher. The industry, in¬
stead
of suffering
a
depression,
would have been operating at top
speed.
that retail

improve the workmanship, rather
than to buy
better quality and

ground. In fact, if consumers

had

Price $40 per

tendency

is good for me. And it's my
loss, too, if you people neglect the
you

40%, according

addition,

sive

you

cause

tomers

expansion

other

post-war period.

estimates.,

our

was

industry has
missed, and to define its present
opportunity,
let's
look
at
the
record of clothing sales. r
-

lost

for

was

many

Now

level.

bigger unit vol¬

increase

This

uncertain, at least in as rapidly as they increased their
my mind, whether the industry is' spending
for
appliances, - autos,
going to take full advantage of new homes, travel, services, etc.
these opportunities.
In that sense, the textile industry
Point

reflected

ume

price

part of the increase in total

ume.

highly

Critical

rising
clothing

tiles. But they didn't increase their

point because it

consumer's

increased

critical point because the

the

than

great expansion of

all,
revolu¬

and

However,

it is easier for
make a profit
; I
believe the industry can do
this. It will be a tough job, but it when consumers are trading up
and
will be worth it.
Iqoking
for better quality
■ ;
*•
than it is when they are thinking
The Sag in Clothing Sales
\ solely in terms of price.

critical point, first of

cloth¬

for

prices, from
1953, increased by about
;

sales

going
Consumer expenditures
on
on, and there is no doubt about it* clothing
and accessories in 1939
And, as I imply in the title of this were slightly less than $6 billion,
talk, this is a critical point in this and amounted to 8.4% of income
so.

the

60%.

because

fabrics

trade

part of this increase merely re¬

1939

revolution

textile

in¬

of the consumer's dollar.

•

the traditional

Even

fabric

•

history

the

capita consumption of fibres and

Wholesale

they realize they must do a better
merchandising job, and find some
way to get a little bigger share

one

rug-

this

two just

consumer

Expenditures

flected

the garments. Then they were hit

that

now

know

less

prices

fabrics

buying far
inventories.

this magnitude

was

bath to look like
tweeds, ginghams, or plaids.
Tufting machines need less than
a minute to punch out a 9 by
12
dyed in

piling

for the sake

wholesale

17 o% Irom 1939 to 1953.

distributors, cut¬
else

that

ing expenditures of 50% .to 55%
by 1965.

be accomplished by trad¬

can

up.

assume,

ing and accessories increased by

improve¬

is shocking. A
lot of textile people had begun to
believe that all they had to do

modification.

The

ing

com¬

The record shows that the tex¬
tile and apparel industries
gained

continues?
us

economic
about

.....

what

mar¬

decline in production and profits

increase

geometrically

found
anyone

year

do.

combina¬

and

fiber and fiber

still

are

Record Could Be Better

clothing

relatively stable. If the
industry can merely main¬
tain its present position, and
keep
on
getting the share it gets now

Let's look at the record, and see

almost

possibilities

yarn

few

commonplace.

now

are

only

modified

tion

small.

and

You

impossible

were

not

has

ment, however, has been sound. I

fibers,

with

1955.

most fabrics

paratively

is flooded with
new

into

the

and

up.

has

accuracy.

....

sell a bigger yardage
quality fabrics."
'

year, -tailer

improvement

sensational, and mill

gins
market

of last

to improve some-*:

this

and

continued

the past few
The

part

business began

opments there

happen

remain

industry

latter

by a growing proportion
better-quality
and
higher
time in the past priced items, are both in line with
projected years past experience.
\

textile

better

will

simplicity,

textile

the

this
Let

bigger total yardage;

been

caused

expenditures and textile business
if

what

What

accomplish two things:
-

have

any

advance with great

effec¬

its

could
in

consumer's income.

the

In my opinion, selling a bigger
experi-.
yardage of better quality and bet¬
enced a very serious recession in
ter styled fabrics is the most im¬
1953
and
1954.
Activity moved
portant. Put that first. Otherwise,
down in sympathy with general
you'll be tempted to concentrate
business as a whole," but the im-.
on staples, to compete in terms of
pact on textiles 'was. much more
price rather
than in terms of
severe than it. was on .most other
quality or style. So trade up, and
industries.
.V,T
encourage the cutter and the re-

The

the

Depression

almost

hesitate to select this title for my
discussion.
-

line, which at

To improve its position, the tex¬
tile industry will have to try to

Textiles Recovering from a

been

downs; ,but over the long run
these have followed a rising trend

Two Ways to Improve Business

garments at higher prices.

and

amount in 1954.

same

light of
unprofitable operations - and doubts whether it will take full

billion

tively

advantage of existing opportunities for prosperity. Terms
shocking the industry's recent decline in production and profits,
as well as its
general loss of ground in consumption. Urges
attempt to sell bigger volume of better quality fabrics and

about

In other words, the industry is
losing about a billion a year, re¬

By A. W. ZELOMEK*
Economist and President, International Statistical Bureau, Inc.

Economist

had

have

in sales at retail in 1953, and

take

dexes

that

tween

since

look

been reached. If
at production in¬
as they go, we

far back

the

has been
fixed rate of be¬
2% and 3% annually, ever

1850.

Lester, Ryons & Co.

Paine, Webber, Jackson & Curtis

Walston & Co.

Shuman, Agnew & Co.

economy

Business

has

its

ups

April 21, 1955.

The Commercial and Financial Chronicle

(1836)

Third, it has resulted in lower

Automation in the

and

production costs.
And
to

finally,

utilize

machines

con-

manual

handling
of
rough pieces, such pieces

heavy

have been able

belts, requiring

conveyor

siderable

moved

and

means

goods for the
and

better

by the length of time taken by
loading and unloading operations,

By R. II. SULLIVAN*

automobile
its

industry andjfescribes its nature and

ever

possible to
chines nearer

well

use as

often

transfer

executive traces trend of automation in the

advantages. Says, along with these advantages

standard

our

are

fully and effectively. In some machines, the speed is determined

Vice-President and Group Executive, Ford Motor Company

Ford Company

automatically
from tool to tool, mechanically
turned, mechanically removed,
and so on. In the process, a considerable amount of direct labor,

Automatic

Automobile Industry

rated

we are

devices

operate

make

these

heavy

laborious

and

nature, has been eliminated,

ma-

capacity.

where

but

say,

And

along with

course,

the

♦

was

pent

Countless

aches.

the

each

de¬

engineering and

studies

financial

tre-

there

had

feasibility

made

automating

progressive step of the pro¬

mand for

new

ductive process.

trucks

and

envisioned

istence, and we had to find ma¬
chine-tool manufacturers with the

automobiles—
demand that

The machines we
just weren't in ex¬

prewar

ingenuity, breadth of vision, flexi¬

facilities

bility and technical know-how to
our ideas into actuality.
And when they had built the ma¬

.our

couldn't
to

The

meet.

obvious
swer

chines, we had to fit together the
products of dozens of different

an¬

was:

ex-

manufacturers into

and

p a n

translate

hope

moder nize.

But

this

not

was

simpie

cause

£1. Sullivan

fast

were

:'f! '

approaching

the practical and theoretical
its

the

methods

old

and

Many

manufacturing

were

marvellous all

same

way

that

contraption
admired

right, in the

Rube

Goldberg
marvellous.
You
a

—

and

wondered
what<< held
Over the years,

together.
had

\ve

seen

They

their complexity

perhaps
them

have

may

automobile plants.

prewar

lim¬

techniques.

you

skill in

achieved

considerable

throwing together

jun¬

gle of assorted tools and convey¬
ors.
Plant layout had grown into
a
specialized art requiring the
combined

skills

What Automation

it sounded, be¬

smooth-run¬

ning system.

The

result

had

automatic

one

that

mean

factories

our

machines.

sense

we were too automatic
had too many unrelated ma¬
chines.
We found, for

—we

example,

that

sible
of

fast becoming impos¬
the full
capacity

was

utilize

up-to-date machine

cause

couldn't

men

tools, be¬

load

load them fast
enough
The
trouble with

and

our

body

had

taken

long view.

What

complete
problem;—a

ophy

couldn't

time

needed

rethinking
whole

for

shut

was

the

philos¬

new

manufacturipg.

afford

down

ex¬

isting plants while this rethinking
and conversion

but

did

operation went on,

decide

that

facilities would be

new

ground

and

not

copies of the old
In

our

new

from the

just

carbon

ones.

machinery,

visual¬

ized

Vice-President

Executive

company.

meant

Ford

originally

now

the

automation

"the

automatic

handling' of parts between

pro¬

The processes

cation,

unskilled

Se-.n?e-dthat has

labor, and

•

Labor and the Machines
of

since the malks direct labor

course,

require

centurv

and

cro^woifld
and

unloading

half

that

all.

scare-

laid toTcst

have been

for

some

Way

back

1811,

streets of English cities in protest

picked hp
the term, the definition has been

broadened.

considerably

contributed

one

Brainard

Company:

looms

ever

than

within

machine."

might be helpful to indicate
the scope of its use by listing some
the

parts

and

included.

are

assemblies

Broadly

that

speaking,

these break down into six grbups.
In the order in which we have
introduced

them

automation

the past ten years,

over

(1) Valves

and

they

valve

are:

guide

Pistons.

Coil springs and wheels.

(4)

Frames

and

(5)

Hoods,

doors,

rear

axles.

floor

parts.
Engine assembly and com¬
ponents, such as cylinder blocks

cylinder heads.
will

six

and

note

that

went

had built

ground

not automated

were

up.

you

new

The

predict
to' run

going
face

are

the
.'

With

the

to touch

at, Ford

selves

prophets.

building

uponourmanufac-

social scientists

are

concerned with

and better products
that more and more

prices

people

look

automotive

turers, not

permission, I'd like
this subject briefly.

your

can

afford.

the

claim

dont

know

what

profound effects of auto-

mation will be. And

anybody, does

should

the

also

wide

know

doubt that

for

higher
jobs, higher

mass

pro-

productivity,
And it

suppose

that

demanding more skill
backbreaking manual la-

bor cannot be all bad.

shall continue to need unskill-

tribute

comparatively less to his
job than in non-automated manu-

guesses

this

make

important

effects

least
our

number of

sound

to what the impact of
technique will be.

new

First of all, let's recognize that
there is no great danger that autocreate

our

automatization

had

Perhaps by looking at the past
can

fast

way

sudden

up-

of life.

The

American

dustry has ben going

time and will continue

for

in-

long

slowly but

ditions for

our employees.
matic. In a completely automatic
Second,
we're
getting
better plant, giant electronic computers
be
There's
less
quality.
damage would carry the job through from
new
lines
caused
would
by
parts bumping into start to finish. What we do have
be
equipped
with various control
each other or falling to the floor. is a substantial
devices to
improvement over
In some cases, we've been able
past methods. Where once we had
»An address
to
build quality
by Mr. Sullivan before a
control gauges two, three or eight separate manmeeting of the Southern Hardwood Pro¬ right into
production lines and operated machine tools, we now

scrap

removal

and,

some

extent, quality testing would
integrated into the lines. The

ducers,
10,

Inc.,

New

Orleans,

La.,

1955.

March

have
ment.

tied

them

into

our

equip¬

have

Where

living the world has

known.

other

Under

words,
under

But

free

enter¬

ly seek
raise

side.

stand still

to maintain and

standard

fall

Insofar

living, lest

by the

way¬

has

already
increased produc¬
suggested
ways
in

contributed

tivity

and

which

productivity

ther

even

We must constant¬

new ways

our

stagnate

get

system.

cannot

people

our

want to.

may

fur¬

increased,

automation
is
vital role in creating a
greater and stronger America and

playing

of course, for

increased

single multi-purpose tool,
once

had

chain

hoists

abundant life for all of

closing,

might
For

called

productivity,

which in turn generates

more pur-

talking
ductive

down to the present
for

ue"WIlu

goods

—

fuu.uJ ~ 111

"tber words more output for less
labor'
We

believe, furthermore, that

automation will create

more, not
less» 3°bs *n industry, service and

distribution. For example, the
growth of automation is creating
'many n(T yobs
,tbe electronic,
machine-tool and other industries
engaged in building new autofactories. Those industries,
ai:e expanding their own
facilities in order to meet the
growing demand, and that in turn
jobs

provides

the

industries

which provide the tools and plants
for

eiectronics

and

machine

tools to do the work that

formerly had to sweat, to do.
long been em¬
ployed under other names in other
Automation has

of the economy.

areas

1784

with

Again,

while

automation

may

one

othe.r specially skilled work¬

®rs reQmred to keep the tremendously complex production lines
ln working order,
?ecms tojne that, from t

the

worker, automation will not eliminate jobs; it
wjh supplant
heavy, dangerous
an(j unpleasant jobs with easier,
skilled,

interesting jobs.

Automation will bring vast new

opportunities
wh0

are

iearn<
0f

\ye

willing

many

workers

work

ing

fin(jing the best and brightest

through to the finish¬

process

human labor
being involved at all.
'"
The

automatic

dialing system
telephone companies

our

be considered

can

form of auto¬

mation, and the big oil refineries
long ago perfected automatic re¬
fining techniques. But the big con¬
tribution of automation as we un¬
derstand it in the automobile busi¬
has been the

ness

linking together

machines

ment,

able

were

and

by transfer equip¬
that for the first time we

handle

materials

flow

automatic

heavy parts

the

basis

continuous

bottlers had been using with loose

liquid

materials—incidentally,

without

arousing"

forebodings

gloomy

any

the

hardwood

business,

this matter
not be as crucial

may

producing
of
as

such

training, at Ford or elsewhere, is
in a very fortunate position. He
is in on the ground floor of what
promises to be a tremendous factor in

our

of summary, then, we
believe that automation is part of
a

tremendous

the

American

force

operating

economy

benefit of all elements of

ciety.

to
our

in
the
so-

That force is productivity,

Detroit, and perhaps automa¬

tion

know it is not the solu¬

that

problems.

your

seems

led

that the

meth¬

automation

But

same

kind of thinking

same

can

profitably be applied to your di¬
lemma.
The first requirement is
to

stand

hard

and

back

look

process

take

whole.

good

productive

your

Only

when

see

it in its entirety will its

internal

logic—or lack of logic—

you

be exposed.

The second requirement is bold¬
Automation under any name

ness.

not

bargain-basement item.
it requires very sub¬
stantial capital outlays. At Ford
Motor
Company we have spent
a

Generally

than

and

one

half

billion

capital

improvements
since World War II, a large part
of it
on
automation equipment
and automated plants.
on

And last of all, the businessman
who

goes

to be

automation

for

has

optimist—a hard-headed,
down-to-earth
optimist, but an
optimist all the same. The expense

for

and

volume

volume
demand

comparatively standardized

product.

That

means

the automa¬

tion—manufacturer looks forward
to

continued

and

industrial future,

way

transfer

it is to

of automation presupposes

receives

our

social prophets.

production

who

part

And

anyone

flour

that

millers and oil refineries and beer

in the work force and
training them to the more skilled
requirements of these new jobs.
people

run

ed flour without any

and

faced with the task

are

mill,

conveyors

that picked up the
grain and carried the entire mill¬

and. dollars

pleasant

power

ods and the

^e direct labor force in a

Pennsylva-

automated flour

system

As far back

ingenious

nian built

tion

tool inciustries

im¬
pro¬

men

used by

demand

we're

about, basically, is
machinery and more

the.'1930s means that the actual
-ork foixc will not be much

creased

even

what

—

industries.

not

may

us.

offer

other

automation

chasing power and more jobs,
In, *act> our Problem over the
?ext 2(. ye.ars may ™eI1 tarn
to b® f'"dln« «nou/h workers to
satlsfy the needs of an expanding
economy;; Tj*„ low butt-rate of

day, however means £ sharply in¬

thing, it

by water

larger. The tagh birth-rate which
beS?.n after World War II and has

I'd

mean

one

proved

high level of employment is

necessary,

standpoint

has

Of course,

ed labor in considerable numbers,
but the unskilled worker will con-

will

auto¬

total

certain.

wages.

reasonable to

seems

heavals

P*ard> ^ in£?,?a*ies ^.ref y
the demand for skilled maintenanc* and repair technicians We
?e.ed many mare engineers electncians, mechanics
electronics
experts . tool and die designers
and makers' and^he £™dred a"d

mation

the

are

raduce

assembly line and

themselves

adaptable

there

Henry Ford the Elder introduced

five
until

methods, it would

and

the

plants from the
list

idea

some

1947

available work force.

We do know what happened when

variety of parts that have proved

Automation

mills, and we
pessimists

gioomily

off

fpptnrincf

along, we got into more and
complex processes.
Groups

using

demand

■

plans

other sheet metal

You

right

power

for

who

machines

man

earth

and less
v

(6)

and

since

the

any process

(2)

(3)

and

textile

lacked

duction

•

haven't
that

"Automation

rioted

against the introduction of

Aircraft

the Hughes

the Luddites

Here is
W. E.

Mr.

1954

than

ing

other

have

high
other Unskilled jote
As I hope standard of living, because mass
to show, however, the net effect consumption is the prerequisite of
has been to create more and not mass
Production.,. But the real
fewer fohs
secret of a hi8her standard of livtransfer them

gressive production processes." As
industries

Company

have needed more than 59-mUUon
workers—or 8-million more work-

have either had to train

these workers

once

this nation to the highest material

few thoughts on what automation

ers

steadily.
modern manufacturing operations.
could handle them.
First, it enabled us to provide
Our engine plants actually are
of automatic lubri¬ safer and healthier working con¬ a far cry from being
fully auto-

smoothly—just
machine tools

Ford Motor Company and

four

and

m™™™.

people have been raising the old
bogey of technological unemployment.
You'd' think that after a

rials

evenly

for

long, clean production lines
along which our parts and mate¬
flow

nlademonf

chines

year-by-year increases in
and agricultural
pro¬
ductivity have already brought

machines

«m'„n

itself
was
coined- by Mr.
Harder, who was then VicePresident—Manufacturing of the

mated processes.

would

TTeaniriir-'

hnil iuL!

Del

give

place of the old, complicated

maze

erations.

word

manu¬

out

manufacturing Op-

And

called

Steady

industrial

cording to^ "Business Week," if
American industry had tried to

important than in

more
less integrated

meant

workers.

our

supply

siderably

for

Motor

than 50-thousand employees. Ac-

con-

The

bushings.

facturing methods was that, like
Topsy, they "just grew," and no¬

Ford

work force has grown by more

operation,

maintenance

Automation.

un¬

by hand.

Preventive

War

come

control

don't

readiness

immediate

has

was

engineer, merely transferring. Nor is it a
the accountant and the three-dipushbutton factory. It is a phi¬
mentional chess player.
As each losophy that may extend back to
individual process was improved,
the desigq of the product.
It is
we made a
piecemeal adjustment a new method of
manufacture; not
in the over-all production
process, necessarily a new way of cutting
and as the automobile itself be¬
metal, but a way of controlling the
came more and more
complicated, various processes. Automation is
we
frantically modified our tech¬ a
philosophy of design, it is a
niques—and added to the con¬
manufacturing method, and it is
fusion.

into

held

the

put

Means

what

are

jobs for

better

and

prise

tools

and

consumer

system, the fruits of this
well, you might productivity have been distributed
does that leave through all strata of society. In

That's all very

their maximum

now

fellows who used to be out
running into a number of headaches and problems," both tech¬
advantages,
we've
run
into
a
there on the line?
;
number of headaches and probnical and human. Discusses automation in relation to labor
1 could answer that by asking:
lems. On the technical side, we've K we
and other industries did
displacement, and decries fear automation will lead to future
had
to
develop
better
control continue to build the older, less
unemployment.
systems, in order to keep the enfacilities, could we be
tire operation going at once, with sure of finding the people to work
The best way to start a talk on assure effective preventive main¬
each part in harmony with every in them next year, five years from
automation in the automobile in¬ tenance.
other part. Tool control is another now, 20 years from now.
In spite
The achievement of that dream
dustry is to fill you in on the
must.
In order to keep
down- °f a^ the automation equipment
historical
background.
At
the over the span of a few short years
time at a minimum, present spare we
have installed since World
end of World
involved a lot of work and head¬
War

Thursday, April 21, 1955

You
we

economic prosperity

high level of consumption.
might say that the blue chips

have been

mation

are

and confidence

Company
future.

putting into auto¬

measure
we

have

of the faith

at Ford Motor

America'*

Volume

181

Number 5422

The Commercial and Financial Chronicle

Proposes Plan for Broadening Market for Stats
And Municipal Securities
National

Planning Association

sponsoring of
diversified investment funds, specializing in the securities of

and

slate

local

governmental authorities.

lation, these organizations could

Under

take

pass on

rangements
"

oping

are

specializing

State

borrowed

fttlwSL f°Vf^nmenl
m by..stat® and .l06?1 governmental
p ",g to finance the growing units and to
volume of necessary and desirable tent demandseliminate to that exthe United States
•

„

+^er

"It is

ways

for

also

desirable

broadening

bond

issues

4-u-

tins

explore to pool jn diversified investment
the market funds the securities to be issued
local

fpf whicn the market is inadeQuate or non-existent. Under top

gov-

Quality

and

aeffressivp

manaffp-

quality and aggressive managements, the portfolios of such in-

ket for small issues of little-known

municipalities could be broadened vestment funds would be balanced
and diversified, and their owri se¬
by encouraging the establishment
curities would be distributed to
of
a
type of investment trust
who
would
which would specialize in the se¬ investors
rely pri¬
curities of State and local gov- marily on the judgment of the
ernments, including their

managers of the funds in making

revenue

their

bonds. To make the shares of such

local

proposal

for

purchases.

The

number

be formed would of course depend
companies attractive to individual
irivestors, the Congress should re¬ upon the needs of buyers and
'
'7,7'7:
vise the tax laws so as to permit sellers.
a
regulated investment company,
1VbHil.vv,u
"Strange as it may seem, there
holding the bulk of its assets in are, so far as we know, no diverthe form of tax-exemnt securities
sified investment funds special-

securi¬

Harry F. Smith On
Trip to East Coast

govern¬

existence,

Harry

the

estJbllLment0of 'diversified1*liernments

designed

solely

then

Correction of the

defect in
to

our tax laws, according
NPA, will make an early

the

state

and

units

local

welcome contribution to lowering the costs and increasing the
efficiency
of construction pro- -V "The working of this illogical
grams for schools, hospitals, roads, provision of the Federal tax law
is shown
in the following:
etc., both urban and rural;
The statement cohtinues
lows:

„

■

"The

States

fol¬

Income which is exempt from

■

and

Federal income taxes when it is

most

the

paid

larger cities—the well-known is¬

of
securities
with
good
ratings—have and will con¬

suers

credit

tinue to have no

able

and

.l_

acceptable

wider

crease

"No

one

knows how much will

(Special to The Financial Chronicle)

be needed to finance construction
and

reconstruction

years

sponsorship
The

cities

must

public liam H. Greene is now affiliated
ahead. with A. M. Kidder & Co., 400
rebuilt, and Beach Drive, North.

done on private initiative and part

Joins Remmele Johannes

be financed by borrowing, and the

responsibilities
vast

sums

thorities.
in

the

most

potential

will fall

ments

are

not

interest

local

"Fifteen

years

ago,

It is

practical impossi¬

bility for them to take the time
the

and

trouble

with

quainted
invest

with

these

become

units

confidence

ac¬

their

securities.

soundness of the

efficiency and
should take prompt

EDITOR'S

NOTE:

met

eral

through the use of Fed¬
capital. Local

Government

governmental
bonds
nance

the

units

sold

their

Reconstruction

Fi¬

Corporation which in turn

derived its funds from the United
States

Treasury. This depression
pattern of financing would not be
practical to meet iuture needs,
even

were

acceptable.

bill

mentioned objectives

de¬

intro-

was

This

announcement is

•

(Special to The Financial Chronicle) ,'

r
ATLANTA,
Cosgrove - ill

Ga. —Philip L. V.
has become con¬

nected with Remniele-Johannes &

Co.

Granville, Ohio.

CHICAGO, 111.

was

F. E. Butcher

Opens

VALDOSTA, Ga. — Thomas A.
Scott, Jr. is now with Beer &
,Co., 101 Toombp Street,/ •
;
•

DANVILLE, 111. —Fred E. But¬
is engaging in a securities

cher

business from olfices in t.ie Ba".

Allyn

Mr.

Butciier

Was

Cruttenden & Co.

and

(Special to The Financial Chronicle)

CHICAGO,

111.--James
T.
Schweiger
the staff of A. C.

O'Brien and Robert S.
have

joined

Allyn & Co., 122 South La Salle
Street.

.4,

(Special to The Financial Chronicle)

SHREVEPORT, La.—W. Carter
Henderson is conducting a secu¬
rities business from offices at 3651

i
Link, Gorman Adds Two
#

W. C. Henderson Opens

•

Southern Avenue.

With Mid Continent Sees.

(Special to The Financial Chronicle)

CHICAGO, III —Luvestai A. Apperson and O. E. Simmons have
been added to the staff of Link,
Gorman, Peck & Co., 268 S6uth

filiated with Mid-Continent Secu¬

La Salle Street.

rities, Inc. of Wichita.

SriREVEPORT, La.—R. E. Love
and

W. L. O'Neal have becdme af¬

offer, to sill

nor a

solicitation of an offer to buy

offering is made only by the Prospectus.

any o,

securities.

; -

$50,000,000

Philadelphia Electric Company
First and
Dated

Ar-

funds

Refunding Mortgage Bonds, 3%% Series Due 1985
Due April 1,1985

April 1,1955

Price 100.096% and accrued interest

original analysis.

■t

"But, unfortunately, the tax-exbeen

destroyed,

making

Copies of the Prospectus may be obtained in any State in which this announcement
circulated from only such of the underwriters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such State.

the

diversified investment fund tech¬

nique useless in

field of grow¬

ing public importance.
"A

change is clearly needed that

possible for

White, Weld & Co.

a reg-

ulated diversified investment fund
to pass

tax-exempt
ceives

to its shareholders the
income which it re¬

without

loss

exempt status, and the
the

United

States

its

Equitable Securities Corporation

Incorporated

Ilallgarten & Co.

Lee Higginson Corporation

Laurence M. Marks & Co.

recom5-

mended that this change be made.

Assuming that the President's

proposal receives early and effective execution, the Business Cornon National Policy of the

mittee

A. G. Becker & Co.

tax-

President

has

Bear, Stearns & Co.

Paine, Webber, Jackson & Curtis
April 19, 1955.

for¬
merly with Waddell & Reed Inc.
Building.

neither ait

;

(Special to The Financial Chronicle)

:<>!/
•} i

changes.
Mr. Boyle was previ¬
ously with Cruttenden & Co. ,

NEW ISSUE

rec-

a c e

With Beer & Co.

Two With A. C

—

has joined the staff of
Glore, Forgan & Co., 135 South
La Salle Street, members of the
New York, and Midwest Slock Ex¬
Boyle

(Special to The Financial Chronicle)

The

empt status of tax-exempt income
has

would make it

"Buring the 1930's, the problem
was

au¬

that

the past ten years testifies to the

the

than

investment

diversified

the

of these governmental units,

60,000.

dictates

ognized by the enactment of the

govern¬

familiar with

of which there are now

these

public

f Joins Glore, Forgan

ernment securities.

range

raising

pointments included the assistant
managership of the bank's main
office in Toronto and in Winnipeg.

may

investors

of State and

Prudence

bonds

The remainder will

current taxes.

Earlier ap¬

(Special to Tqe Financial Chronicle)

part of this rebuilding will be

Investment Company Act of 1940
be,
that the pooling of capital from
and to give them thereby the best
large numbers of investors, and
access
possible to those who de¬
the diversification of investments
sire to buy tax-exempt securities,
under
professional management,
be
they
individuals,
insurance
could be accomplished by passing
companies, the managers of trusts,
through to the fund's shareholders
or
corporations seeking invest¬
for taxation its income and capi¬
ment
of
their
various
reserve
tal gains, leaving the fund itseif
funds.
untaxed.
The rapid growth of
"Many existing investors and

they

PETERSBURG, Fla.—Wil¬

under

the

ST.

appointed

was

to NeW York iri 1945.

the flow of private capital

saving§ into State and local gov¬

attained only by bringing the borrowers
into
the
best
available
wherever

made

branches when he

With A. M. Kidder & Co.

investment funds which could in¬

sible cost that the market affords.

not

been
named, but an "
appointment
is expected to
yet

•,

market than now exists.

vents the formation of diversified

understood, there is serious diffi¬
culty in securing the lowest pos¬

markets

the Hotel Biltmore.

in New
has

■

paid out by the fund to in¬ signed to accomplish the above(that is, in the form of
on its own securities).

York

taking a position for or against
shortly. ..
the aesirability of continuing the
Mr.
Aulph
Amott, Baker & Co., Incorpo¬
present exemption from Federal rated, 150 Broadway, New York
has been first
taxes of bonds issued by State and
Lecu
agent at the
City, members of the New York
local public authorities. The proStock Exchange, announce that ';7 ■ •7. ••• •'
bank's New
'•
posal is directed primarily toward Raphael Vogel has joined the Re¬ York office since 1947, following
the improvement of the borrow¬
search Department and will be in two years as second agent there.
ing position of smaller and less
charge of listed securities. Previ¬ Previously, he had had extensive
well
known governmental units
ously Mr. Vogel was with Wer- experience in Ontario, where he
by making their securities avail¬ theim & Co.
was
assistant ; superintendent of

when

taxes

cessor

to New York where he

"This anomalous situatiori pre¬

secondary risks or for prime risks

can

subject

real, Can. Mr/
Aulph's suc¬

dividends

which are not well known or well

possible cost

vestots

lowest

income

Federal
-

the

head

office iri Mont¬

Raphael Vogel Joins
Amoft, Baker Depl.

its cost."

which

Income

of substantial impor¬
tance for the best results. But for

This

into the investment fund

ger

bank's

dov

(that is, the interest on State and economy we
and appropriate measures to facil¬
local government securities)
itate this financing and to reduce
is transformed into

difficulty iti ob¬

taining the prime rate of interest
at the time they borrow, and of
coursb even here the matter of
timing*

come

and

general mana-

will stop at

facjiitate the flow ol private capimi jn response to the capital needs

curities is subject to Federal tax that the amounts required m the
larger
even though all or most of the next decade will be far larger
than the amounts spent in the
fund's income may be free of tax.
77
It makes no difference whether past. ■
"It is clear, too, that only a small
the fund is a closed or open-end
trust.»
part of these costs can be met by

reasonVwhy prompt action oh

promoted to the post of assistant

Smith, President of
Smith,
Polian
&
Company,
Omaha, will make a business trip
to the east, leaving Omaha April

izing in local government securi- of it will be done.;at public cost,
the tax-exemnt status of the in- ties.
The reason is not hard to Schools are believed to require an
come received on such securities,
find—the investors in such a fund, aggregate of $32 billion in the
Such a •pass-through' would be a if there were one, would lose the next decade.
Hospital. needs of
useful extension of a principle al- fnll benefit of the tax-exempt ^ between $10 and $15 billion are
ready in use."
■
'
status of the securities in foe being examined. For highways,
A
statement
of
the
National fund's portfolio. Through what is streets and roads between $50 and
Planning
Association Business Probably an inadvertence in pres- $100 billion in total sums^have
Committee
endorses
the- Presi- ent tax legislation, the income it been projected. Whatever the todent's proposal and elaborates on Pays out to the holders of its se- tals may turn out to be, it is clear
it is desirable.

MONTREAL, Canada — Cecil
Aulph, first agent of the Bank of
Montreal in New York, has been

vestment funds specializing in the 24. He will spend Monday and
securities of State and local gov- Tuesday in Pittsburgh, and will

„

IS SSSS

Mgr. cf

Bank ef Montreal

sylvania.

Snmenl

ernments,
particularly those of
cmaiter
incaiitinc
Tho
Smaller localities. 7.7 The mar-

and

foe

Asst. Gen.

Marcn 24 by Congress¬
D. Kearns of Penn¬

Carroll

man

v
througSout fte country.
?+im?.e me ?j for meeting Our endorsement is given without
situation would seem to be

ft ^ools, Treasury's borro^ power.
of capital improvements:

one

in the House of Represen¬

tatives

lic.

needed which will

have

ly available to the investing pub-

required

who

and to make such securities wide¬

n0|e ™a'te it easy for private capital
f°"°Jing t,erm? °l a States *° s,upply a.s far as possible the
problem faced by
funds
n-f

duced

Association

those

steps to bring

"This

sponsored or might sponsor diver¬
sified investment funds that they

ties

the tax-exempt status
of these securities to their shareholders.

Planning

recommends

mental authorities into

legis¬

new

National

funds

recommends

(1837)

Salomon Bros. & Hutzler

(1838)

The Commercial and Financial Chronicle

Continued

from

page

Connecticut Brevities
Plume

marine

Atwpod Manufactur¬
Company has recently com¬

ing

its

about

100,000. The Wilcox plant, located

pleted and commenced operations

and will continue in

the

plant in

new

Connecticut.

which

being

erected

was

sbout

Thomaston,
new
plant,

The

by
long-term lease,

total

been

made

Clark

has

recently

Landers,

Frary

Company of its purchase of

Electric Steam Radiators Corporalion of

Paris, Kentucky, maker of

line

portable electric

radiators

and

purchase

was

company's

line

announced

rounding

out

electrical

appliances

The

wares.

purchased

its

the

policy

lines

and

small

house¬

new

subsidiary was
$800,000, payable

for

five year period.

over a

The

with

The Ken¬

uled to be moved to New Britain.

In January of this year North &
Judd acquired the spot and spot-

of MilCompany.

setting machine business
lord

Rivet

Machine

New Britain Machine Company

steam

thermostats.

manufacturer

self-locking and wing nuts. The
operations of Bessom are sched¬

cost

Massachusetts

$1,500,000.

Announcement

Middletown, employs about 400
operation. In

February, 1955, North & Judd ac¬
the, quired E. A. Bessom Corporation,

operated

Company under

has

acquired
Koehler
Aircraft
Company
of
Dayton,
Ohio, manufacturer of aircraft
parts, principally hydraulic by¬
Products

valves. New Britain itself has

pass

management,
although
some operations
may be moved to
the main Landers plant in New

Britain.

Electric Power, Inc.,

a whollysubsidiary of Connecticut

owned

Eight

Power

filed

with

Company,

the

Commission

Federal

has

Power

application

for

50-year license to build and oper¬
ate; a hydro-electric
development

100

First

Boston

Broadway,

has

that

Cross,

who

the Connecticut River at Wind¬

Locks.

sor

3,050

foot

wide

dam

ing

generators
of

62,100

stalled.

with

struction

and

Development,

capacity
be

organization

in¬

July

1955.

will

new

will

president

be removed because of the
reservoir would be five to six
feet above the present dam.
The
cost of the new
project is estim¬

has

pany,
new

begun

construction

buildings in Bloomfield. The
building will contain about

first

28,000 feet of floor
be

used

plastics.
uled

research

Its

for

center

completion,

for

sched¬

September of this year,

will enable the
company to move
Its research operations from facil¬
ities presently shared with
Emhart and will enable the latter
to

materially
operations.

expand
its
The second

to contain about

will

Plax

used

11,000

office,

research

building,

square feet

house

presently

the

main

occupying

leased space.

director

Stockholders of Hartford Na¬
tional Bank & Trust
Company of
secord April 13 are
being offered
common

the

stock

basis of

owned.

j-1.

Rights

The

new

Mr.

rights
share

will
stock

the capitalisation

one

for

will

7!g

May

increase

880,000 to

000,000 shares of $10

par stock.
The
management
has
indicated
that it expects
earnings to be suf¬

ficient

justify continuation

the present $1.30 dividend.

North

Company
f

Judd

Manufacturing
acquiring the assets

Wilcox, Crittenden Company,

pioneer

the

with

banking

his

editorial

field

firm

vestment
&

Co.

which

enter
of

New

the

old

York

in¬

Halsey
in

1916

followed by an 18-year

was

association with The National
City
Company.
He joined Harriman

Ripley & Co., Incorporated in 1934
following dissolution of The Na¬
tional City Company.
Mr.

accepting the resignation of
Cross

from

his

present

post,

World Bank President
Eugene R.
Black said: "We counted ourselves
most fortunate when in 1953 we
able

to undertake

persuade

Mr.

Cross

2-year tour of duty
the Bank's director of
technical
operations.
Now
that- the - two

manufacture

Cross

are
can

look

end, Mr.

back

portant job well done.

im¬

Under his

direction, the Bank's activities

appraising and following through
on
the projects it finances have
been

reorganize^ and greatly ex¬
panded, to the considerable bene¬
fit of both the Bank and its
bor¬
rowers.

My associates

and

most grateful to him for his

are

splen¬

did work."

and

Primary Markets in

automation

extent

product with the last effort

mum

—the best

physical
which

use

human and

our

resources—is

for

goal

must strive

under

war as we

ing the hot

just as vig¬
conditions of

the

had to do dur¬

and

war,

must

now
do during the more active
phases of the ideological struggle

which

our

generation faces.

certainly clear
duction

It is

the side of

pro¬

that

good public policy
accept the fruits of automa¬

must

Exchange

'CONNECTICUT

ex¬

It is clear that good government

really

exists

welfare

and

promote

that

its

human

paramount

interest and duty lie in promoting
the well-being of those who live

that the human

costs

kept at

are

automation

material

minimum.

turn

workers

cut

on the
streets, forcing them to
compete with each other in a bit¬

ter

struggle

fewer

for

fewer

ever

and

jobs, public policy dare not

it.
Mass
unemployment
economic»depression would be

and

almost

tions

threat

the

light

helping

insure

opportunities.
Since

the

JAckson

7-2669

Teletype NH 194

the

adequate

job

free

our

from

society

without.

the

are

Fortunately, in this respect the
Congress of the United States has
already taken

long step forward
under the Employment Act of 1946.

its

Committee

Report

charged

making for maximum em¬
ployment—that is, to foster and
promote conditions which will af¬
ford job opportunities for all those

who

desirous

are

and

capable of

The greatest obstacle to the ad¬
vancement of

automation and

realization of its
lies

the

productive fruits

possibility

that

the

economy would fail "to find other
useful work for those who might
be displaced
by it..' The whole

increased production at

process of

point

one

human

would

resources

where.

Both

be; defeated
are

from

wasted else¬

the

standpoint
needing the increased product

pod

from

the

forming its

standpoint

to its people, government must see
that individual human beings are
to suffer because of our

long
arise

velopments.

run

from

Simply

problems
such

because

de¬
we

the

Implications

Which

icy

Implications of

The

subcommittee

Automation."
which

cannot,

therefore,

precisely

say

what the subcommittee will do
what ot.:er members

have in

may

find

made

human

ically,

and
we

National
was

Com¬

studying the structure

trends in
devoted

Economic

American industry,
time to

considerable

The fact

able

hereto¬

shall be able to adjust as success¬

fully

from

automation.

the

fact

necessarily is
affect

the

This

that

arises

automation

change which will

whole

country in a
comparatively brief time, while
most technological changes in the
past were gradual.
The

feeling of satisfaction

over

past gain does not, of course, be¬
little the hardships by way of loss
of income suffered by displaced

looking
adjusting themselves to a

for and

job.

new

It does not belittle the

automation

its

pay

may

in terms

way

welfare.

public

deal

policy

with

such

specif¬

adjusted

things

as:
(1)
possible and probable dis¬
placement of personnel (2) the
possible
shifts
and
distortions

the

which

tion

(3)

the distribu¬

purchasing,

mass

the sound

tribution
in

arise in

may

and

the

power;

equitable dis¬

expected

gains

productivity; (4) the impact of

automation

structure.

number

to mind

example,

mation

business

our

doubtless

are

of other questions

may come

for

upon

There

the

effect

which

go on—

auto¬

the volume and reg¬

uoon

ularity cf private investment. But
let

look

ically

little

the

upon

specif¬

special

problem

thus suggested.

areas

Responsibilitms

individual

the

Displaced

Worker

policy

Government

deals with

and

public

human

beings,
public policy is particularly con¬
cerned with the displacement of
personnel. One must be concerned
about this

even

though
the

has

confidence

adjustments

necessary

will

and

can

short-run problem,

one

made

actually
creates
it wipes out, no

know.

the

have,

long run, t' e
In the short run,
often "No."

today
as

partial

much faith
face

technological

been

ad¬

which in the end have

for

added

goods

and

re¬

to the de¬

services,

people have
Introduction of

employed.
dial

telephone

has

brought

it expanded use and result¬
ing investment and expanded pay¬
rolls.

The

delivery

mixed concrete has

for

ready-

certainly made

construction

and

hence

jobs in the construction in¬

dustry than we might ever have
hoped for under old methods of
gravel sieve, the

the

cement-mixer's

wave

nological
too

after

tent

demonstration.

pacity

need

American

adjusted
of

the

The

for

serve

sudden

tech¬

past

extensive

resultant

industry

ca¬

put in it in the

can

depend

certainly

it to tne

upon

ex¬

dismissing the questions
proper
public policy toward
jobless workers, no matter how
of

temporary their displacement

may

turn out to be.
The
have

should,
consideration to

give
the

subcommittee

spoken

Government

can

which

believe,
just what
should

and

do in the way of

assisting and re¬
training those displaced or likely
to be displaced.
It seems to me
that

the

first

cost of retraining
they say, "fall upon the
industry."
It should not be al¬

should,

lowed

fall

making it
ment

Government,
for Govern¬

upon

necessary

"make

work"

by public
expenditures on what was called
"boondoggling" during the recov¬
ery movement in the early 30's.
The principle upon which all pol¬
icy should be based, it seems to

is the recognition of what the

founders

this

the

Constitution

when

mind

nation.

they

They

had

established

were

thinking

people, they were thinking of
justice, they were thinking of
tranquility, they were thinking of
welfare, they were thinking of
permanent liberty—and all these
objectives, so clearly set forth in
the Preamble

Every
ment in

affects

Constitution

the

enjoyment

man.

technological
age which

our

national

the

nomic, and

improve¬
necessarily

social,

eco¬

political system must

weighed
be

the humanitarian

standards

the

able

Constitution.
to

not merely

way,

the

for

meant

living

pay

its

own

in terms of the

obsolescence of existing plant and

machinery, but in the
mental sense,

funda¬

giving due recogni¬

tion to the human costs by way

and retraining and
improving worker skills.
severance

pay

Automation,
nological
calls
It

for

other

developments,
an
up-grading

increases

tve

talent but at the

tech¬

usually
of jobs.

opportunity
same

for

time great¬

ly increases the need for special¬
This is particularly

ized tiaining.

true of the maintenance and oper¬

ation of

have

wave

advance

obvious

shovel, and

hoe.

unemploy¬

cushion

of automation.

cannot

should

that

for

These should

Unemployment
is, however, almost
of necessity a short-term pallia¬
tive.
We
ought ' to know how

startling

mand

and

warn¬

displacements.

duced costs and

is true, built into

program

We do know that in the past we
have
in
this
country witnessed
new

ment benefits.

one

the

is "Yes."

it is too

robots

economic and political system

our

of the

answer

obsolete

new

mation.

vancement

can

made

Rather, it is

ing that a policy of drift would
dangerous in the face of auto¬

—were

jobs

come

skills

techniques.

longer .run.
Whether or not a
given
bit
of
technological ad¬
many

which

hard-earned

suddenly

are

me,

Since

tragedies

man's

compensation

we are concerned witn how

should
to

how

out

The fact that

During the time when the Tem¬

been

adjust to technological
progress is no guarantee tnat we

con¬

sidering Lis study has, of course,
not fully formulated its plans.
I

Need Study

porary
mittee

eco¬

speech—"Some Public Pol¬

with

porary
and
which may

given

in the past.

have

of this

the

technological progress.
policy must consequently

the

preserve

have

introduction

vances

per¬

role in respect

proper

growth, that Committee ten¬
tatively plans to probe deeper into
the subject matter behind the title

that

working.

that
fore

and

to create the con¬

ditions

nomic good

when

resources

self-generating force for

with the responsibility of making
continuing studies of matters re¬
lating to employment, stability,

Under that Act, the Federal Gov¬
ernment
has
obligated itself to
use

which

It is

workers themselves while

Joint

Economic

damaging to the founda¬

necessarily talking about Federal
policy.

Some

—

look

development in
the newly accepted

the

Hartford

appropriate,

again

and

Speaking, thus, for myself, I
hope and expect that we will try

New York —REctor 2-9377

that

trends

ing conditions for a constantly
panding circle of people.

fear.

SECURITIES,
y\——^—v

calmly

mind in this respect.

recognize and discuss these prob¬
lems is, of course, no reason for

New Haven

seems

therefore,

we can do so

tion and encourage its progress to
the extent that they improve liv¬

beware of and anticipate the tem¬

CHAS. W. SCRANTON & CO.

plan ahead
rationally.

responsibilities of Government in

Members New York Stock

Public

backdrop

of sizable unemployment.
Happily,
that is less true today, so that if

vaunted

the

that

this

fort, so much the better.
Why, then, are we concerned

not made

against

development.

important

had to consider these de¬

economic

has

characteristic

conditions

these

coming to

time

velopments

striking

machines

and

manpower

our

of impact and sig¬
technological devel¬
the country. At that

opment upon

matter how

ignore
in

career

on
"The
Financial
Chronicle" when he left the news¬

paper

factory,

automatic, could save manpower
other jobs in the military ef¬

connection

years

each

expire

from

problem

an
ever increasingJ vol¬
goods and services out of

been

for

that

tion.

progress

Harriman Ripley

Cross'

commenced

were

Fractional

purchased

rights.

shares for each

will be available
can

$26

had hoped the
ordnance plant at Rockford would
be, would have then been readily
acceptable without fear or ques¬

his

new

many

as¬

year

Co., Incorporated.

lights to purchase

un¬

signment with

increase

icy must, therefore, make certain

1953, Mr. Cross
executive vice-president and

was

efficient

two

Cross

resort to

under its shelter. Good public pol¬

the World Bank in

and will

space

necessary

A plant which was as

dertaking
M.lton

Corporation, subsidiary of
Emhart Manufacturing
Company
and
Owens-Illinois Glass Com¬

nificance

and

Prior

Plax

•

vice-

this

director.

ated at about $27 million.

was

mechanization

world
scarce

recent

production.

will join their

will

The present Enfield
Dam,
above the proposed
dam,

located

Bank

Recon¬

Three

total

kilowatts

Interna¬

for

extend¬

Massachusetts.

technical

tional

the river about 21 miles to

Holyoke,

reservoir

director

the

which

create

operations

The proposal calls for

would

Milton

currently

was

the cold

Corporation,
York City,

New

announced

and

the

manpower

orously

As Vice-President
The

when

today, even to
holding such en¬
lightening conferences as this one
in
which
we
are
participating?
The process of obtaining the maxi¬

Former Chronicle Mm

Corp.

during

see

the

producing a variety of air¬
craft engine parts on a subcon¬
tract basis,
y
^py/yy •'

Joins First Boston

war

about

been

tucky plant will continue with its
present

Some Public Policy Implications
Of Automation

$2,-

Thursday, April 21, 1955

produce
ume

hardware, for

and

highly technical electrical
equipment. Since

electronic

standards of education

ally considered

bility,
mean

adopt

social
that

the

policies

are

gener¬

public responsi¬

responsibility
Government

which

will

will
must

assure

Number 5422

Volume 181

The Commercial and Financial Chronicle

(1839)

old

well

the

workers

new

opportunity to secure needed re¬

If public policy allows
employers to shirk this

training.
private

consumers,

among workers,
investors?
What

impact will be is

and

public

pol¬

can

do to help diffuse the
throughout the economy

Power

Another question to which I
Congressiional considera¬
tion should be given involves the
,

believe

possible

the

arise

chasing

automatic- devices

permitted to make
of

automaton

should

result

duction
fewer

the

man.

Instead of

recognition of the fact that auto¬
mation

unless

enterprises

which,

development

American

ment

system of govern¬

designed

was

centrations

to guarantee

The

that people, and not any group, or

individual, should be the

advance

authority to which
The mod¬

has

people must bow.

covering

ern

world is face to face with the

old

the

will

been

Auto¬
mation will succeed only if it con¬

nistic collectivism and fascist col¬

and

lectivism

recover

tinues to increase demand for the

which

enlarged supply of commodities it

group of

philosophies through

are

dictator

self-chosen

salary for the

and tell their public

ernment

ficials what

We know that consumers have

urgent and expanding needs.

they

may

our

system, trade and

are

just

do.

much

con-

decade

lated

these needs

into

history

It is difficult to

cerned

but moral values from
junk-heaps created by

choose."

of¬

commerce
au¬

Ponsre'

fntendld

nower

the

Cnn

Drotection of people.* This proprotection of neoDle Thisnro
tection must be measured not in
ti-m
the

nf
of

coming

cronoroHnn

generation

ought

not

and

manpower,

forget,

Mr.

Reuther has pointed out, that

machines

automatic
around
or

the

revolution. "

output.

own

The introduction of auto¬

comes.

mation

not

must

allowed

the progress we
in creating the mass

wipe
made

have

out

mar¬

kets

indispensable to the

suc¬

cess

the

pro¬

system

duction.
which

the

mass

capital
giant cor¬

modern

invests
in
automation
persuaded to recognize
that higher skills and better train¬
poration
must

ing should be required of the su¬
pervisors who run these machines,
and, therefore, that trainings for
the social and economic responsi¬

technological progress.

that the

technology of automation is likely
find

its

fullest

use

the

so-

called "administered price" indus¬
tries where prices are

insensitive

notoriously

decreases

conviction

that the big

cost.

gains

may

ing

might

further shorten¬

the

average

Within

the

lifetime

week.

work
of

now

men

working, average hours have been
reduced from 50 per week to just

unsold

and

inventory recession.

neglect
will

goods pPe upon the
are
in the midst

till

then,

nonetheless

government
exnected

counter

by turning to the tradianti-depression tools at its

tional

service

—

monetary,

fiscal, and

public works expenditures, for ex¬
ample. It is not a question of pub¬
lic policy or no
public policy, but
what public policy, foresighted or

electronic

This

gains

directly into the
question — how should the
of

creased

one

of course, find some hope that

can

burdens

the

automation

and

its

in¬

production be distributed

for

Government,

our

better

world

richer and easier

well

of displacement will

and

expansion of
investment

If the time should

em¬

the

come

when the thme-day week-end be¬
came

reality,

there

that

will

we can
have to

sure

sub¬

stantial investment and large num¬
bers of new jobs created in pri¬
vate recreational
as

Disposal of

facilities

well

the public facilities—highways,

parks, etc.

impact

great stake likewise in the

automation

business structure.

technological

submitted

Congress

which

more*

mission,

"excess"

explains

becomes

property

after

the

other

„

that
be-

agency

longer needs it,
"surplus" after its

agencies

and

bi-partisan

Com¬

increased
"could

cash

the

its

fiscal

1950

military

efficient

ment throughout the Government^
and particularly within the military
establishment, which accounts for more than 99% of all
goods bought^ and stocked by the

and

;

Bear, Stearns MmW
W.m and Fatten

time

channels.
fiscal

agencies spent
supplies,

for

would
flow from
property manage-

known-Government."

none

same

supply

believes that "vastly Iar-

savings

ger

equipment,
capital
goods,
real
property and construction. Estim-

Stearns

Bear,

Co.,

Wall

Street, New York City, members
of the New York Stock Exchange

May 1 will admit L. Eugene
and Joseph F. Patten ^to
partnership. Both have been with
the firm for many years.
on

Marx

of which former Presi¬
Chairman,

selling

under

the

advice

the Government as a means
of
recovering for the taxpayer
more than the 5 to 7 per cent of

Pew Issue

600,000 Shares

ALLIED

URANIUM

upon

MINES, INC.

each

dollar

cost

disposal
program,

COMMON STOCK

property sold would yield an ex¬
tra $20 million yearly.
As a vital part of an effective

inventory
control
the Commission recom¬

OFFERING PRICE: $1,00

PER SHARE

be obtained from

the undersigned:

and

mends that the Federal catalog to

property owned by the
Government
be
completed
as

Prospectus

may

identify

as possible.
Government has an

H. J. CO0NEY

"enor¬

pool of assets amounting to
$155
billion"
scattered
throughout the world, from which
surpluses come, creating a dis¬
posal problem both immense and

upon

the

Just what that

some

re¬

derived

dent Herbert Hoover is

points out that, "for the next sev¬
eral years, huge quantities of sup¬

regard for

improvements
in
selling surplus stocks," the Com-

yearly for new
the

$107,600,000,000

12-man

Commission

possession

1954
Herbert Hoover

sold

are

commercial use."

the

mission

Between

items

with little

lots

public domain, surplus farm commodities, or stockpiles of strate-

items'from

April 18.
The

valuable

their possible

tetires old, worn-out or unneeded

Executive

either sold as scrap,
abandoned. Othetf*

"are

Besides

supplies

Branch of the

advances

problem.
"Many items," the Commission

mixed

•-The Federal Government spends

the

tion

The

public

can

& CO.

UNDERWRITER

mous

The government and the
have

this

charges

the

destroyed

billions of dollars

speedilv
Effect Upon Our Business

overhead

increase

says,

them desires it.

received

ployment

clearance.

warehouse

merely * from

industries serving our leisure-time

means

one.

availability has been made

activities.

eased

good inventory system."

complex. This figure does not inelude the value of land in the

and

Sur¬

acquisition cost which is returned,
the
average,
under present
methods. Each additional 1 cent

Structure

leads

it had

Surpluses

and

.Organiza¬

ity of increased leisure time,

belated.

comes

:" report

merchandising experts are urged

more.

until

"Use

In connection with the nossibil-

even

in the costs of production are not

shelves

make

The

Perhaps automation
age
will do

40.

will thus arise if the

production.
We must anticipate
this problem.
We must not wait

the founders of

plies approaching an annual rate
of $2,0C0,0G0,000, acquisition cost,
will be purged from Government
warehouses." Modern techniques

less than

moun-

which it would not have bought if

Government-owned

a r e-

Commission

get machines to do work

the

passed through by way of the con¬
price reductions needed to
absorb
the
enlarged volume of

an¬

Government

course,

look forward to

and

elimin-

plus
Proper¬
ty" which the

pie is

generally reduced work week.

we can

and

sumer

billions of dollars

the

Federal

from

in which
be absorbed would be
of

way,

Serious problems of public policy

cost savings

in
on

always the easiest to split."
One

has

Government

"The

gic materials.

out, are expected to save

budget"

states¬

deviate

national

the

auto¬

heretofore done by men, we

It has been pointed out

divide

available."

<?pp

nual deficit in

question whether we want
big or little pie of national

our

Productivity

ating

never
a

which,

"to go a long way toward

position when he recog¬
nized the desirability of techno¬
logical progress, saying: "We will

in
Distribution of Gain in

carried

taxpayers

manlike

wealth

been done and "complete and reliable inventory data still are un-

turns

Disposal
Mr. Reuther has taken a

quantitative terms," this has not

know what to

recommendations

Recommendations

product

resulting from

military services to maintain inventories in monetary as well as

tainous accumulations of property-

will

Federal deficits.

mation.

bilities of automation are a proper
cost of this

increased

the

wealth

and

discovered

Commission

The

not

which, if carried out, could save
taxpayers billions and go a long way toward eliminating

would receive his just share in the

collective

The

Makes

ity if there were assurances under
public authority that the worker
division

avail-

Force

that, although the Congress more
than five years ago "directed the

often

tainly the owners of capital as a
group must understand that auto¬
During
the
depression years,
mation may be successfully used
there was a recognizable absence
Only if it is used to create mar¬
of a
widespread distribution of
kets, not only by increasing de¬
purchasing power. Since that time
mand but by multiplying purchas¬
we have,, as a
product of consid¬
ered public policy by fiscal and ing power. And labor as a group
could face the threat of unem¬
other means, brought about some
reduction in the disparity of in¬ ployment with greater equanim¬
their

consume

were

Air

the

choices made by its citizens. But
levels, from $10 billion to
it certainly is an important mat- Government of supplies could be
billion warehouses now. ipt
t
f
nublio nolirv tn
that
i;Li LPT; +-P
yi
t eliminated
levels of education, understanding, enminaieci.
and
appredatiori are raised
s0
"Moreover, a large volume qf
that the new materialistic proc- stock on hand is obsolete or is
esses shall
not crush our basic fapidly becoming unsuited to milmoral forces but, rather, under the ^ary ^ffds^JDejetmg^it ^rom^he
sPiritual concepts which guided/supplysavings through depot and
system will provide imme—V diate

Government

government. Cer¬

our

from

Rapid

It behooves both capital and la¬

acteristic of

figures

comparable
able

..'"-'f--..;.'*/

Hoover Commission Finds Waste in

bor to understand this basic char¬

buy and

$576,600,000 at acqusition cost. No

substantially reduced."

shop

its inventory of ready-

supplies in the amount of

$913,400,000, while Navy disposals
in
the
same
period
exceeded

con-

American political system will bp

undergoing

prop-

toJ Army."

bility to public authority, then the

stores

not

department

durable goods stores to

the

quanti-

surplus

idealists

Greek

and

mat-.'according to the Commission. "It
ter for democratic government to ^ estimated that, with proper mheIP in influencing the kinds ofinventory control and more realistic

the
tne

tprmc
teims

for-use

recorded

PerhaPs « isn't too much

actual,

of materials

the

corresponding

■

excess

increased

merely of living, but of what life
they want to live. The 'good life'
within reach if

If we recognize, as
must, that this government is

huge population is
with
the
problem,

user

"For the first time

commodities

erty. In fiscal 1954 the Navy alone

problem

eraser!

«produce

suggested

values for the

trans¬

are

all

huse

such

"Exnenditures

think

thority of the people as are the alone but in terms of the present
effective de¬ courts, the Executive, and the generation and the generation that
Congress. When, however, collec¬
mand, however, only when con¬
is passing. I have no doubt whattive industry, trade, and commerce'
sumer
purchasing power keeps
soever that the American
mai
tne
svstem
American system
can
use
automation according to
pace with the ability to produce.
the desires or the will of the pri¬ of
government,
set up
in
the
While it is obviously true that the
vate managers, without responsi¬ American
Constitution, is suffiautomatic factory will be a great

know that

students predict, we shall have

management.

Under

under the

any

after

new

wealth.

new

these

unemployment and economic mis-

dictators control the gov¬
ernment and tell the people what

same time cre¬
ever-expanding purchas¬ they may and what they must do.
ing power among the masses to The democratic-republican svstom
make the necessary market. This of
government, uoon the other
market
can
be
created, where hand, is one in which the people
automation is used, both by more prescribe the powers of the gov¬
more

Departfor all

Defense

amounts," the Commission says„

technology and

new

the human

and

the

for

and $3,400,000,000
agencies,

ment,

seriously about the overwhich Adolf Berle
in his "Saturday Reand means of re- view" article on the democratic
the junk-heap of future. Mr. Berle observed that:

ways

industries

be increased.

from

production

with

in decade

science

the

workers.

If the automatic

The

contributes

deal

challenge of collectivism. Commu¬

leisure

cultural

the spiritual and
values which we foster.
upon

ernment

mar¬

ates

produc-

and the kind of a country in
which we will live is dependent

To the extent that

movement

source

makes, and at the

mass

Men do not live by jobs alone

factory and the
push-button civilization bring only
further concentration of economic a small part of the product, leipower, the necessity for large gov- sure, and labor saving that some
the

class,

ket, it would defeat itself.

the

tion industries.

P*rf£uaL a.nd

properly regulated
under existing
authority of the
Constitution, could easily become
stronger than government itself.

pro¬

supply off the

000,000

ties

special-purpose, complicated machine. The result, it
would appear, is almost certain to
give adaed advantage to the large

with which to take

power

the increased

expenditures for fiscal 1955

mammoth,

-J,?jpor*1a,^e1 °*

constitute

pur¬

products

receiving the

industry,

sitting in the front row when the
changes occur?
V
The immediate suggestion is the

public policy do so that they

with

in the

merely

persons

chasing

Automation

labor.
be

never

pur¬

resulting from the

human

must

may

distribution

power

substitution
for

which

distortions

in these fields will total $23,900,-

which

under

What, if anything, should
do
permanent wind¬
falls for those who happen to be
not

Purchasing

ated

ulations

civilian

in any case.
on

cient to provide the rules and reg-

assembly line be beneficial for our entire society,
made up of a series of small, more
or
less standard machines, these
«
will all be tied together into a
Cultural Values for the Future

responsibility, it will have to be
accepted as a public responsibility

Effects

one

tions.

whole?

Possible

On the

hand, the movement is likely to trade, and commerce under autocall for expensive plant installa- mation can be so regulated as to

gains

icy

matter for in-

vestigation and study.

25 Beaver Street

BOwling Green

New York 4, N. Y.
9-1533

(1840)

The Commercial and Financial Chronicle

Norway Obtains $40 Million

Industrial stocks

1949 is

into at

ran

nudging the average further
into the highest
standing it
has ever had in
history. It at
least broke a string of nine
successive plus signs for the

now

bracket
which

reached
market

toric

intends to

the

bull

average itself,
chore ahead if it
approach anything

the

1929

reached

peak when it

$256.1

Northern

promnient

❖

good • earnings
comparison

with results for the dour first

level

1937

rail

quite

the

which the
rails were far more prominent
than they were in the 1946
runup.
Central, even more
than

statements

price,

best

swing in

has

Railroads, which have been

best

the

since

industrials that carried them

high.

well into the $40

at... its

from the 412 level to the his¬

out

Bond Issue and World Bank Loan !

WALLACE STBEETE

least momentary trouble this
week in the 425-30 area after

pouring

Thursday, April 21, 1955

AND YOU

THE MARKET..
By

...

■"

Pacific

has been

good strength
quarter last year, were able this week but the comparison
to keep
forging to the best in this case is different, large¬
standings in a quarter cen¬ ly because of the romance of
tury, but with a rather sizable its oil lands that enabled the
gap still remaining between issue to post a modern-day
on

the 161

average level of this
and the 189 peak of

week
1929.

Basic Momentum

The net effect

to indi¬

was

cate that the basic momentum

of the market

high of above $94 in 1952. It
subsequently retreated to $52

Signing of the Purchase Agreement covering the $15,000,000 of Kingdom of Norway External Loan
Bonds, and the Loan Agreement relative to tne con urrent loan of $25,000,000 by the World Bank to
and has worked its way more Norway, took place Tuesday, April 19, at the offic s of Harriman Ripley & Co. Incorporated, 63 Wall
Street, New York City. The photo above, shows, 1 *ft to right, seated, Wilhelm
Morgenstierne, Nor¬
than
halfway back toward wegian Ambassador to the United
States; Eugene R. Black, President of the World Bank, signing the
the former peak. The road has Loan
Agreement; Christian Brinch, Chief of De )artment, Ministry of Commerce of the Kingdom
little chance of ever repeating of Norway, who signed both the Loan Agreement and the Purchase
Agreement on behalf of the Nor¬
the famous price of $1,000 wegian Government; and Joseph P. Ripley, Chairman of Harriman Ripley, who signed the Purchase
Agreement for the nation-wide underwriting syndi?ate, which also includes
Kuhn, Loeb & Co.; Lazard,
reached in a market corner
Freres & Co., and Smith,
Barney & Co. as co-managers. Standing, left to right, are Robert L. Garner,

was still
strong
enough to override the rather just at the turn of the century
without some drastic
changes
widespread belief that a
in the line's fortunes.
really important correction
❖
*
*

due

was

about

There hasn't been
of

much

industrials

this
a

correction

10 (Z

since

time.

for

Return of

the

High-Priced Curio

Among the high-priced

Vice-President
The

to around

was

the

early

March

5r/r while the

s e

f f

was

around

6V£%. These two, in
turn, were the sharpest since
the Fall of 1953.
*

sic

was

new

bond

issue is

April, 1947, when $10 million of 10-Year Sinking Fund 3^%

shared

the

auto

expectations in the
makers

were

high of $1,332 pushing their good sales to Tobacco
1948, making it the highest the point where only a
letup session.
Stock Exchange price record¬ later in the
year was possible.
in

Oil

generation. Superior The issue

was

able to

make

territory
back

means

into uncharted

average
that

American

Telephone,

mar-

Aircrafts

today

scope

ended

their

per¬

decline

Meetings Stimulating

little in
In

meeting season
underway, producing
the way of
surprises.

the market's buoy¬
is traceable to the opti¬

part

ancy

mistic statements of
company
leaders at these

gatherings,
plus the added incentive in a

few

of hints that better

cases

dividends

overly
Mon¬

series

wide

was

prominent in

reach

its

than

best
a

able to

was

notch ahead

posting in
and

year

movements, nudged to a new quarter.

high only subsequently to ap¬
close to the head of the

pear

list,

while

was

able to

new

duPont

[The
article
time

views
do

expressed

not

coincide

Chronicle.

this

necessarily at
with

They

those

are

any

the

presented

highs together.

put

General
which

those of the author only.]

Dynamics,

the

swirl with
ous

couple of

about

merger
rumors
choice of numer¬

combinations,

was

Eldridge Robinson V.-P.
Of Fairman, Harris

some¬

the

era. was

recent high. The Bath Iron
and were able to
cling
grimly to the plus side on the Works annual meeting was
that offering. That was the week
despite the softness fol¬ informed flatly that there
was
highest conversion rate in the lowing their runup.
absolutely nothing to any
series of subsequent deben¬
*
*
*
Dynamics-Bath Iron combina¬
ture issues. The stock, now
Some of the gyrations were tion, which took a bit of edge
around the $180 level, is the
off that stock's recent
wild ones,
including a" sixhighest it has been since 1946, point
strength.
s
runup in International
❖
*
*
contributing a lot of diverse Paper followed
by a rather
news

despite the

con¬

wise

version rate of $150 fixed in

ideas

over

what terms will be

Oils
continued
somewhat
forthcoming.
sharp reaction, along with
important in many agreed on eventually. The daily movements running a irregular, Amerada sinking
last debenture
cases since
operation, dozen or more
yields of the better
points in the rather easily under the
when the price of the stock
grade issues have reached the
high-priced section for such weight of an expected second¬
was
below $160, had a con¬
spot where increased pay¬
issues as International Busi¬ ary offering of a large bundle.
version price of $136.
ments are needed to
ness
Machines and Rohm & Houston Oil was in enough
spur any
*
*
*

These

;

might indicate a traditional
windup to a bull market.

nudge its high

weren't

placed.

subdued
and
announced, spotty. Douglas and Boeing what
dipped
and it slumped rather
badly shared the biggest play price- more than 10 points under its

The annual
well

were

high activity and

although

debenture

postwar

santo,

bonds

optimistic Avco Mfg.

prominent

await the terms of the latest

temporarily, in the early trad¬
offering once this ing of the week. But then
of more than 40
points where week's annual meeting was
they:tl' showed evidence that
half that amount would have out of
the way. The issue sold
profit-taking could be ex¬
represented a solid correction at $200 in 1946 when the first
pected on any rebounds, mak¬
a
couple of years back.
debenture
offering of the ing their new look somewhat
*
❖
s|:
a

was
American

of
one

sjs

casualty

than any set¬ ketwise, had settled down to sistent drift
downhill, at least

necessarily involves

Chemicals

California

the advance of the indus¬

trial

highs category

new

inclusion

at its all-time

currently up two-thirds of the ground
The question of whether a holds the title for the
highest lost in its drop from $96 in
10 % reaction, common in current
listing, having sold 1953 to $56 last year when it
previous bull markets, is now this year at $>1,040. Its high was something of a
casualtythe norm is a moot one. For in 1948 was $235.
of-the-year.
one,

the

ed
if

Eank; John Schiff, of Kuhn, Loeb & Co.; George Murnane, of Lazard,
Walker, of Smith, Barney & Co.
>

April 15, 1955.

made

feature. The issue sold that

World

designated as the "Kingdom of Norway External Loan Bonds of 1955" and
It is divided by maturities as follows: $2.5 million of Three-Year
3%% bonds,
$2.5 million of Four-Year 3%% bonds, $2.5 million of Five-Year
3%% bonds and $7.5 million of 10Year 4V4%
Sinking Fund bonds, due April 15, 1965. All maturities are being oifered at
100% plus
accrued interest.
The previous public issue of
Norwegian bonds sold in the United States market
is dated

steady curios, the appearance for the
advance started a year and a first time this
year of Cocahalf ago; the
January setback Cola International at $990 widely
came

of the

Freres & Co., and Burnett

are

Eldridge Robinson

are

CHICAGO, 111.—Eldridge Rob¬
inson

has

president
Company,

been

elected

Fairman,

209

South

vice-

Harris
La

Salle

new

buying.
*

New

York

Central

con¬

tinues to pace the carrier
tion

the

have
that

and

its

appearances

daily list of
been

new

sec¬

highs

Among the standard issues,
Chrysler was quite a standout
as

start

emerge.

Steels

continued

new

make

high
sprint.
-

laborious

including
highs for U. S. Steel,
It Acme, National, Superior and

the optimistic first
quarter

results

pinpoint demand to reach
*

new

on one
*

multi-point

Street, members of the New York
and

Midwest

Harris,

Stock

Mr. Robinson is

Secondary Issue Boom

There

was

still

Exchanges,

president, has

an¬

nounced.

progress,

blind

ber of

the

Bond

charter

mem¬

Traders Club of

Chicago and past president of the

The stock paced the division higher gen¬ Midland Steel Products.
demand among the secondary Bond Traders
under $10 in erally in the face of rather
Something of a newish note or speculative issues such as City, Missouri.

many.

slumped

Haas.

Chrysler Revival

Club

Kansas

Volm^

Number 5422

JLP

...

(1841)

The Commercial and Financial Chronicle

"value".— $35 an ounce of gold.
In
*
m

Public

securities

By FREDERICK G. SHULL

:■

By OWEN ELY

Mr. Shall

Company

Interstate Power Company serves an area
in northeastern Iowa and southern Minnesota

of 9,270 square miles ;
(East Dubuque, 111.,

small subsidiary). The larger cities served
(population 52,000), Clinton, Iowa (31,000),
Minn. (15,000). The other 221 communities range

is also served through a

use

affairs of this nation show

population from 10,000 down to 100; many are

county seat comwhich include >

It will,

people

Electric customers aggregate

in Albert Lea,
and natural gas in Clinton. The company also provides bus service
in Dubuque and 'East Dubuque.;
'
1,
V
.The area served by Interstate is the richest farm section of
the country, yielding bumper crops of corn, wheat, oats, peas,
alfalfa and soybeans.
Based on these cropsr a great livestock
industry has been built which includes the raising of hogs and
sheep as well as dairy and beef cattle. Electricity has played an
important role in abundant farm production, and the average rural
customer uses 4,878 kwh. per annum, nearly twice the national
residential average. Farmers still remain prosperous despite some
decline in agricultural prices and it is estimated that bank deposits
•

products.
-

-J

• -•

foods, flour and

frozen

feeds,

livestock

products,

corn

,;'f;<?'>

reorganized in 1948 with an

common

stock equity.

been constructed

1957.

the

present 69,000 volts.

ally during
needed.

Obviously
However,

year's 97c
1955.

those hearings were

Reserve System,

The

initial

,•

dividend rate of 60c

in 1948 has now been in¬

further increases may be

Hart-

Comnanv

insurance

tories

one

of the
BrookInstitution," asked: "At what
price is gold to be freely convertible, and to whom?" To which,
Representative Patman
replied:
"The same price as now
.
.
Domestic, of course." And that point
Edward S. Shaw,

clarified

further

when

Douglas contributed

ator

Sen-

this: "I

the question in these
words: "Can you conceive of any
proper action to' be taken within
the near future which would lead

free gold, inter-,
changeability of gold with dol¬
lars?"
'and ^continued:
"Now,

desirably

000

What

carrv

"val-

"ate, snail, likewise, car y a va
ue" of $35 per ounce. And by the
same

token, when
pays a

carrvint?

dollar*

"dollars"

made to

good
and

held

That

the beneshall

that

same

offering of these securities for sale

the

"value"
at

the

$35

can

ounce

of gold,

age-old privilege of "reon

demand,

at that "fixed value."

solicitation of

offer to buy

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

—

all

say
'aye,' or raise
hand." The recorded
was: (No response.)" Then

favor

your

NEW

ISSUE

right

answer

Flanders:

Senator

raise their right

"All

opposed,

250,000 Shares

hands." Recorded

"(There was a showing of
seven hands.)" — with "one per¬
son not voting." (Ref.: U. S. Gov¬
result:

ernment
No.

55314, page

Southern States Oil

pamphlet
156, dated Dec. 6

Printing

Off.

Company

7, 1954)
j
a pretty sad state of mone¬

It is

Common Stock

tary policy when the high officials
entrusted with the handling of the
financial
affairs
of
this nation
show

(Par value

tion

principles of Sound
principles that this na¬
had
followed
consistently,

with

rare

Price S2.00

per

—

exceptions,

from

1792

right down to 1933. And while we
are still operating with the print¬
ing-press type of money foisted
upon us in 1933, there seems no
good reason why the present Ad¬
ministration should not promptly
carry

cent per share)

little regard for the well-

recognized
Money

one

out

its

1952

campaign

pledge to restore our currency to
"a dollar on a fully convertible

gold basis."
Fortunately, there is one ray of

Copies of the Prospectus may be obtained in any
such persons as may

State only from
State.

lawfully offer these securities in such

Gordon Graves & Co., Inc.
April 21,

1955.

na¬

the Dollar firmly

circumstances to be construed as

or a

1933.

guaran¬

Standard, with

fine

return of this

Gold

deemability,"
stated

1792

from

true

assurance

fixed
and

monetary structure—

our

the

origin¬

—as

as the represen¬
and maintained "as

—

as gold"; and that "honesty"
"integrity" shall be the key¬

stone of
as

This advertisement is not, and is under no

any

safely serve

ally intended

only

$35

American Dol¬

the

tative of gold,

tion

lar; that our paper currency, and
other
token
currency,
shall be

teed

"value"

is to be

shall

there

tampering with the stand-

insurance

dollars carr;ng. .valua ,/ W5
Per °unce of gold, he is fully en-

paid

that

premium with

people really want, as

their "dollars,"

further

jars" be withdraws at some future

policyholder

our

assured

"dol-

be no
raid

respects

is entitled to
the

will be

Treasury's huge stock of 22,tons of gold.

the

deliverv." And since
dollars,
today/ carry-a
"value" of $35 a fine ounce of

likewise

there need

fear that there

future

that

prefer to

bank at inter¬

"honest" monetary set¬

therefore,

up,

;ard-of-value,

suggest we poll the experts on $35 •; titled to assurance that
ounce."
Chairman
Flanders fits under that policy
an
then phrased

Under

those

assurance

will

people

est, or invested in an insurance
policy, than to have "gold" bur¬
ied in a mattress at "no interest."

bank, he is in effect, "buying $100

g0ld, the depositor

Gold Standard?

the

For people don't want

have "dollars" in

When one deposits $100 in a

definite

Does

gold itself — as they have
' little use for it. People
merely want "security" based on
an
"honest" monetary standard;

Ainn

metal.

rare

very

making:

—

the

Wilde

deposit, is
«seibng money for future delivery." Let me enlarge upon these
am

Yes, at

that the United States

Not at all!

involved,

ings

was

this

mean

back

get

—

ciajms j

warrant
in this

Money?

lacks the necessary gold to safely

regardless of the type of

"dollars,"

interest

$500 billion

that

future

accepts

stake

much

"sells money
delivery." And is this
^ype 0£ business confined to insurance? No
every bank that

for

point in the discussions,
the question of "Convertibility' —
meaning,
of
course,
the Gold
Standard — was raised. And Mr.
At

much net change since the

made from time to
time as earnings justify.
The price of the common stock has in¬
creased from a low of 5% in 1948 to the recent figure around 14.
The stock yields about 5% and the price-earnings ratio is about
14.4—which figures compare favorably with the general averages.
creased to 70c and

bankers, econo-

^™Ce Company' mrt

bank loans.

construction is small (about 2c a

Insurance

I ife

capital and the

high officials
and Federal

company,

Sound

troy ounce; it is 25 times as
gold as we have buried at
and the other reposi¬

per

./ •

•

mists, and others — among whom
was Mr. Frazar B. Wilde, President of the Connecticut General

About $6-$7 million will be spent annu¬

The credit for interest on

•

of the U.S. Treasury

reorganized in 1948, ranging between

share in 1954).

Republican

Fort Knox

?*'««pn„!jpp8p?1t

Standard

Gold

the

which, even
in these modern times, is a lot of
money. The facts are that, as of
Dec. 31, 1953* total bank deposits
aggregated $201 billion; and, in
1954, total life insurance in force
was $339 billion — together, $540
billion. In terms of gold, $540 bil¬
lion is the equivalent of 528,000
tons, avoirdupois, based on $35

bilizatioii, with Senator Ralph E.
Flanders as Chairman.; Attending

This

80c and $1.02.
the increase in the equity ratio had a restraining effect.
since 1951 earnings have increased from 80c to last
and the latter figure is expected to be maintained in

1955-61 and a total of $24 million new capital will be
expected in 1955 and next year's require¬

company was

intelligent

-■1?^?' hearings were -held by Stathe
Economic

should be ready by September,
in the construction of a

earnings have not shown

least

the answers to which would seem

the

taking

matter

suggests the following questions,

comoanv-

enough

their

'"•.- •, General ' the only insurance com'
pany that "sells money for future
In Washington, on Dec. 6 and 7, delivery?" No —- every insurance

of 161,000 volts which later will replace

be obtained through

Mr.

promised

ple

calibre are not

"PYnrcccinn"'

>that

No financing is

ments may

insurance

that

statement

That

it is language

—

the

The

Platform; in 1952. Have the Peo¬

value."

lower

namely,

Dollar.

foundation

and

much

"honesty,", tnere

the "sound" and "honest"

rency to

(Ref « Pamphlet No. 55314, page
gg )
.
v,,.

given to carelessness in the use of
•words. Here is the background of

beginning was made last year

major transmission ssytem

it an ex-

sacrifices for
then get

present

protection,

dollars

present writer

the

lifp

men

make

future

delivery, and to me it

will

•

local control of costs and

generating unit which

lar^

voiced

—

honesty: '

pretty wicked thing to con¬
sider the possibility .that people

recently used by the president of

earnings in its wide¬
spread area. There are no state commissions in Iowa and Minne¬
sota, and in the latter state rates are indirectly controlled through
franchise renewals. During 1954 the company continued its suc¬
cessful record of franchise renewals, 22 franchises having been
secured—17 granted by Minnesota town councils, and five in Iowa
by a vote of the people, resulting in 2,506 favorable votes to only
209 unfavorable.. During the past six years the ^company has ob¬
tained or renewed franchises in 89 communities, and during this
time no community has denied a franchise to the company, >
The company raised electric rates in 1949 and 1951 and does
not contemplate any further increases at this time. Substantially
all industrial and wholesale electric rates provide for adjustments
to compensate for changes in the price of coal, oil and natural gas
used for boiler fuel. Retail gas rates also include an automatic
adjustment clause for any change in wholesale gas costs.
•'
V.'
The company this year is beginning construction of a 33,000
kw. steam

Frederick G. Shull

has invented? No

future

for

pression that

=and

money"

may be biased because of the
fact that my business sells money

zant of this fact. And
.

the

Y "I
IpT
Jf

rather, it is intended to make sure
that the People are -fully, cogni-

to continue at about this level. About 14% of
is carried to net, and the company has developed a very

efficient system for

value

o r

try
to
scare
•anybody

is expected

revenues

intended

The latter may be

about 6%% on invested

■>

sion,

need,

confidence in the future

this gem of monetary

in the last six years.

Interstate is earning
rate

ery," it is not

and
increased moder¬
ately but this will be done gradually so as not to penalize earn¬
ings. Plant account is now on an original cost basis, with an 18%
depreciation reserve. Over half the dollar value of the plant has

30%

•}

;future/ deliv¬

unfavorable

capital structure—82% debt and 18% common stock equity.
has now been improved to 52% debt, 18% preferred stock

fj|L

us¬

have

capital
expansion,
when people

for
they

which

this; ex-

"money

budgeted at slightly over $19,000,000

Interstate Power was

dollars. In

ing
.!p r

'capital
*

than

half-a-trillion

amounted to $17,880,642, and are

&£ v.

considerably

meat

for 1955, with 1956 expected
to pass the $20,000,000 mark. Electricity accounts for 89% of rev¬
enues, gas 8% and transit and steam 4%. Residential and rural
sales contribute 42% of electric revenues, commercial 22%, indus¬
trial only 11% and sales to other utilities 10%. Both the electric
and gas departments have shown steady growth while the transit
business, contributing only about $500,000 per year, remains steady.
(The latter business is retained for political reasons.) Steam heat
is a very small revenue producer and will probably be closed out
within the next two years, with customers transferred to natural
gas heating.
' • [" ' Y J
' 'J ;■ "-v- '
■
■;/ '■ •;
■ L'
The company is actively promoting appliance sales by dealers,
and usage by the average residential customer is close to 2,500
kwh., only slightly under the national average. The company is
working with other major Iowa electric companies to establish a
161,000-volt transmission grid within the state, part of which is
already under construction. The company is cooperating with
Northern States Power and REA cooperatives in southern Minne¬
sota to develop plans and contracts with the United States Bureau
of Reclamation, for "wheeling" of power in 1956 to REA co-ops
from the Government's Missouri Valley hydro plant projects.

realiza¬

more;

•.

Interstate's revenues in 1954

pared statement presented at the
'hearings, Mr. Wilde — after men¬
tioning that a country "cannot get

tion that it is

every person

.v.

when brought

work¬

Merely
demand
that; our
political leaders return our Cur¬

surance

ery" — par;t i c u la r iy

fluctuation,

normal

ple:

•

who owns a life in¬
policy, or has "dollars"
deposited
in a
bank, meaning
practically everybody: In his pre¬

for

"money

deliv¬

future

Y v^'v^/hY.:
Industrial and manufacturing activities in the company's area
are now of equal importance to farming.
Principal products in¬
clude wood millwork, steel products, tractors, cellophane, toys,

gained 6% last year. /f v

invested

have

95,000, and 13,326 customers are

with natural gas and steam heating

also supplied

Dol¬

> And how can such assurance be
had? The answer seems very sim¬

that should give encouragement to

nation

of this

which the citizens

the

fluctuation"

"no

American

—

11,130 farm customers.

but,

must

hope that has come out of those
December hearings — something

perhaps, surprise many
learn the extent to

by the

standard-of-value,

Wants Gold Standard

restored. '

munitieTtmd trade eenters for large farming areas,

little regard for the well-recog-

nized principles of sound money."

include Dubuque, Iowa
and Albert Lea,

ing of the law of "supply and de¬

mand";

of term "money for future delivery,w and comments "it is a pretty sad state of monetary policy
when high officials entrusted with the handling of the financial
explains the

occasioned

the

course,

power"

lar will undergo some

Connecticut State Chairman, The Gold Standard League

Interstate Power

either : case;- $of

"purchasing

rein¬
I

The Commercial and Financial Chronicle

Thursday, April 21, 1955

...

(1842)

agement and advanced up through
the

practical school of production,
selling and finance. They are very
conscious of the fact that they are
trustees for the capital that has

Oar Enterprise System
And a Free Stock Market

of fairness to these ownc-rs,"

amend

government should

free and

the markets inOFfc
these

uncertain

■fiiiies when
ixed

with

forces,

military

huge

hot air of the
fjfu n i r-iendiy

the

hostile

and

enjoy

^breathing
t

necks, and
knowing

when cold

war

sudden¬

may

ly become hot

war,

it is al¬

ways

timely to

talk about the
freedom

shirt and

enter¬

are not good. It is so impor¬
that a continuous supply of

capital be available that I
the general misunder¬

risk

afraid

standing

and

talk

for no one, but

ears

as a

result of these hear¬

capable representative of the
parent organization
who has
a

urge

our

East, but

share is. The scare

of the 1929 debacle has never been

opportun-

any

i:etween

of life and that different in many ways from that
cI the
aggressor
nations which early pentfd. The many factors
might destroy us. There is today affecting the prices of securities
are quite complicated and I have
more freedom in our country than
in any country of the world. We yet to meet the expert who can
our

way

must tenaciuosly fight to sustain and keep

fought for it but we

it is not

it. We must realize that

cnly

conquest

Irom

the

may

ways

taken

from

there

are

be eroded and
destroying

can

These

us.

sometimes

can

rather

an enemy
that freedom

that

but

lost,

many

rations

outside

come

upon

suddenly and unknow¬

ingly. One by one the many items
that comprise our good life—our
enterprise system that has made
the

most

productive nation,
■with the highest standard of liv¬
us

ing and the most stable govern¬

and weigh them all so accu¬
rately that he can always be right.

guess

think it

mists knew the
all be
do

reminded of

I; am
mine

whose

was

received
in

man

stand

his town

that

which

free

our

current

has

been

economy

and

interest

much

discussed

in recent weeks is the stock

mar¬

ket, and I would like to speak of
the need for

maintaining the free

securities markets of the country.

First, let

that there

say

probably nothing

is
misunder¬

saying. "Under¬

stocks
me

are

good buy. Please wire

are a

advice." «This banker
follows: "Have contacted

your
as

well-

in New York con¬
tacting Wall Street bankers. Hear
you

Street

item

a trip to New York he
telegram from a gentle¬

Wall

One

friend

was

known banker in the South. While

wired

constantly vigilant.

father

bankers.

Some

say

they're going up. Some say stocks
are going down.
I urge you to act

quickly."

securities

confidence

industries.

our

the

Our

industrial

corporations
need
a
supply of venture
capital. If it is not supplied by the
investing public freely and in free
markets, it will then have to come
from
the
government.
If
that
should
happen
we
would then
continuous

Socialism

would

there

and

Communism
no

free

in¬

dustries and free businesses.
I

think

the

recent

dom

such

conservative

path. People usually buy the auto¬
mobile
some

television

and

other

first

and

things too which are
more risky than if
to put some of their

less needed and
were

Take, for example, here in Louis¬

early dollars into good securities.
ville, General Electric, Air Reduc¬ But people today most often don't
tion, International Harvester, and want advice. They usually don't
other large companies have very want to be confused by facts, after
important plants. It is a wonder¬ they have already made up their
ful

thing that

any

government should
amend some of the existing laws
so as to make the markets more
free and encourage the investment
of funds in
shares. The recent

individual who minds.

which

good start in that

fair to tax

direction. It is just not

twice

income

incentive
for

funds

from

receives

income

that

investments is

tax laws
owner of se¬
small portion

income

in the
permits

change

and

future

our

this

need

are

get new
industrial

growth. Likewise, the capital gains
tax should be lessened or removed
entirely, and if it is to be retained
in some form the holding period
should be
lessened. This would
make
for
more
free
and fluid
Lack

of fluidity lessens

the freedom of

buying and sellirg.
to rise too

markets.

markets

cause

can

abruptly and undoubtedly the re¬
cent sharp rise of securities can

largely be attributed to the fact
that people are reluctant to sell
and thereby incur taxes. Prices in
a free
market are determined bv
supply

with

demand, " and

and

Our

survival

very

keeping
present

likely

and

Time

attack

for

us.

This
is

long

the

nothing to the

means

countries

that

We have made such

scientific

great

situation

continue

mass-populated
may

strong.

threatening
to

term.

depends

industrial productive

our

ready

power

industrial

and

progress

during recent

years

that

really

new

and

financing
form taught
in our grade

simple

exnlained

and

even

schools.

high

results
of

the

two

things

new

businesses

new

cor¬

past

the

producing

research

large

many

during

not

are

yet

the

opment

further

industrial

There
it

was

industrial

future

will

never

time

operations

continuous

flow

when

strong

and

It takes

large

capital
this, and in the future

funds to do

larger

raised

a
*

necessary to keep our

modem in all respects.

even

revolution.

amounts

than

must

known

have

the past, for development of some
of the modern wonders of scienceare

going to be truly large capi¬

tal

projects.

and

nation

are

good

our

lasting,

way

must

preserve

tem

which

the

wonderful

free

our

is such

to survive

of life is to

vigilant

capital

sys¬

vital part of
freedom we have
a

here in America.

Salomon Bros. Firm
Admits Four Partners
Salomon
Wall

Bros.
&
Hutzler, 60
Street, New York City, have

admitted

Harry

general

Brown,

partnership
Robert J. Quinn,

should

living

fully realized. The atomic devel¬

have business

methods and svstems of

business

The

decades,

supply is lessened.
I think we should

are

porations

the

selling

impede

which

taxes

and

hearings
that point was not emphasized.
Experts advised that people who
first owned their home, had some
insurance and some savings were
then
qualified to buy common
shares. That is good advice, but
you and I know most people.sel¬

they

have

must

have

not.

unless

are

they would

answer

wealthy, but the fact is they

ment—can deteriorate' and be lost
we

said that if econo¬

was

people of the volatility of equities,

with

activities

I believe our

located. We

organized industries
such great productive capac-

strong, well

era.

Should

Laws

Be Amended

which

and

resources

than heretofore.

the future

curities to deduct a

survey

common

standard of living, there
will be required a greater flow of
capital into private industry in
prove our

complete autonomy, and
that the plant is very definitely
a
real part of the community in

nearly

we want it to be definitely a local
operation and for the people of
forgotten and it should not be, but the
community to feel that it is
Louis Ware
; i t
y, and
t o it should not be used as a measure theirs. Stock ownership by em¬
realize
that of the market performance for all
ployees and local citizens is help¬
that one good word really de¬ time. This country's business and ful in that
respect.
scribes completely the difference financial conditions today are quite
While it is always good to warn

America

and need to continually im¬

urge

which

lic, and take active part in com¬
by the Stock
munity affairs. Such a plant is not
Exchange showed that 77% of the
one
solely owned or controlled
aauit population does not know
from the North or the
recent

being made as a result of in¬
dustrial research
and
with the

Securities

is not true today.
Another
situation

ahead, with the tech¬
nical and scientific advances that

that

managers to be cognizant of their
ings has not helped the situation.
We need to establish and maintain ; responsibility to the community,
realize the obligations to the pub¬
confidence in our markets.

this what

enjoy

letters

corporations'
affairs.' In former days there may
have been the independent, auto¬
cratic
managers
with a stuffed

suddenly, but that does not mean

they

our

available

always

are

their

management
is
very
well to warn people that modern
aware is the desirability of having
common share prices can go up
and
go
down, sometimes quite plants in various cities managed

tant

They

answer

with them about the

to make

business

private

are

It is

^nations

so as

of the stockholders at their meet¬

ings.

investment in stocks.

encourage

critical

and

of existing laws

in the years

to have

we are

great natural

ity.

rapid growth in popu¬
lation of this country envisioned

public.

(2) How blessed

such

With the

They encourage large
afltsndance and welcome the voice

faced with the prise.

we are

sustain

some

before.

the

enjoy private business enterprise. Holds

to continue to

are

to the

We'knew

cur¬

personnel of the company and to

standing of securities by the public, and (3) the requirement
of a continuous supply of funds from the investing public if
we

rency/taxation and markets than

by their stockhold¬
and that they must operate the

corporation with constant thought/

(2) the need for better under-^

securities;

much

gbolit "regulated

knowledge

ers

Chemical Corporation

Asserting there is probably nothing more misunderstood than
(he Stock Market, Mr. Ware points out: (1) the necessity for
free markets for

coined

have

fore.

been invested

By LOUIS WARE*
President, International Minerals &

(1) How very real and close is
regulation
of the markets
by
existing agencies, the selling and this present war threat to our
buying of securities can now be nation.
kept more orderly than ever be-"

taught as the very basis of our
enterprise, capitalistic system
which has become known as the
free

of
maintain
method
of

American way. Let us be aware
the need to support and

confidence

our

bringing together the wealth of
many individuals to finance our^
large industries.
'
r":

incentive
capitalistic
which we employ every
is free to exploit his own
the

system
man

honored

dignity

his

and

capabilities.
he

individual,
worker,

free

person

harry Brown

J. Quinn

Robert

respected. We have it so good here
in this country that I am afraid
we
sometimes are not apprecia¬

I has saved a few dollars can buy
The New York Stock Exchange tive, and it is only when we travel
hearings by the common shares in these companies and other security markets are abroad and by . contrast realize
how fortunale we are.
Senate Committee on the subject
and become part owner.
It is no not the ugly monsters that they
*
*
*
•
*
;; \ i
were enlightening, and if one were
longer the wealthy few who own are often believed to be. They are
to read all the testimony he would
simply auction places where se¬
these
I recall an operation I saw in
companies, and there has
gain much information about the been a decided trend toward many curities are freely traded in a free Hong Kong during a recent trip
security market. Of course, most more of the population becoming market.
around the world. It was on the
stood

than

think

the

stock

market.:

recent

people just read the headlines
^rief

summaries

news

and

or
am

afraid such terse reports miss the
seal

story entirely.

reminded

that

incident

recently

energetic

reporter

wanted to prove people just don't

time

take

He went out

the

ing,

matter

you

hang

by the neck until dead." In

Three
are

make about

(1) How

Essentials

three points I would
our

security markets:

necessary

it is to have

free markets for securities.
1

(2)

(3)

•

Securities should be better

understood

than for¬

Also, in addition to indi¬
as owners of shares,

viduals listed
insurance
trusts

and

companies,: pension
even

investing in

labor

stocks,

unions

are

the many

equity in the funds of these or¬
ganizations are also suppliers of
capital.

time he had 35 signatures.

There

shareholders

the street in front

petition

have many thous¬

thousands of people who have an

newspaper's

"and

ands

Most all of the large

now

today.

read

office with a
petition directed to the court say¬
ane

companies

merly.

reported

was

Nebraska.

shareholders.

the

entire

We must have

public.

continuous

supply of funds from the invest¬
ing public if we are to continue
'Part of an address by Mr. Ware be¬
fore the Kentucky Chamber of
Commerce,
•

Louisville, Ky., April 7,

1955.

It is
one

good thing to have every¬
who is able to be part owner
a

The governmental regulation of
as
included in laws of

markets
recent

is very complete.
While the security markets are
fairly operated, nothing can • be
absolutely perfect and there is> to
some
extent, opportunity for
spurious securities to be sold. It
years

is not
possible to pass enough
laws to keep the foolhardy buyer
from making mistakes. However,

with

our

brokers

reputable
financial
people

many,

and

many

available for consultation in cities

sound
of our industries share in the in¬
advice
can
always be obtained
dustrial growth of this country. It
and there is opportunity for any
«is definitely an improvement of individual to
buy an interest in
our
free enterprise system.
It is American industry with a fair
a
very desirable thing—it is the degree of safety if he uses reason¬
democratic American way.
able care. It is always good to
Also, let me assure you the man¬ warn investors that they should
agements of the corporations to¬ know what they are buying and
day are appreciative of the demo¬ be cautious, but the point I would
cratic aspect of corporate affairs. make is that it is suicidal to so
frighten
people
Most
corporation presidents'! discourage and
know are boys from Pennsylvania that our free security markets be¬
come impotent and are destroyed.
or
Ohio, or Iowa or Kentucky,
who have worked hard at

the profession of

learning

corporation man¬

throughout

control

the

country,

opinion that with the

credit,

taxation

and

way

from the airport on the Kqw-

Peninsula,*:motoring;

loon

There

town.

into,

large sign on

was

roadside, being a cut-out figure!'b£vJa man, and there-Wits an

the

extended in which there was

arm

glass of beer for the purpose of
advertising that beverage.
This
arm was moving up and down in
the manner of the man raising the

Kaatmam

Irving

Daniel M. Kelly *

glass

his

interested

that
that

the

fact

little

string to
and down, a

Chinese coolie pulling a

this

work

sign

job he did all day long. It was
cheaper that way, perhaps costing
12

electrical

the

become

equipment

such

to motivate a device of

use

kind.

that

day, than to put

15 cents per

How

cheap

men

little

how

and

life

sions
our

manager

fice.

are

that

firm

for

of the firm's Chicago of¬

Mr. Quiim

industrial

is fnanager of the

bond

Kaufman of the

department,

Mr.

government bond

department, and Mr. Kelly is rep¬
resentative for the firm in institu¬
tional

coverage

Connecticut

and New York.

Admission of the
was

previously

partners

new

reported

"Chronicle" of April 7.

There

the

with,

can

worth in those Far Eastern coun¬
tries!

All have been" associated
co-

stood

there

ground,

Kelly.

28/to

was

Daniel

Kaufman

the thing years/*1 Mr. Brown has been,

platform below, on the

but

lips,

and

Irving

the

Herbert I. Losee,

two

main

have

impres¬

gained from

travels around the world dur¬

ing recent years:

who has been

general partner

since January

1919 has become a limited

in the firm.

partner
!

181

Volume

Number 5422

The Commercial and Financial Chronicle

(1843)

FORTY-NINTH
ANNUAL REPORT
-

195If surpassed all previous
records in sales

electricity,
revenue

gross

gas

and

operating

and number

customers served.

Highlights
Gross

operating

THE

from

revenues

YEAR'S

all

Expenditures for expanding and en¬
larging our facilities totaled $170,933,-

sources reached a new
peak of $386,244,000 and exceeded those of the pre¬

vious
In

by $22,139,000,

year

addition,

amounted

000 for the year, or about
below the peak established

6.1%.

miscellaneous

OPERATIONS

income

$26,000,000
in the

pre¬

vious year. A further substantial reduc¬
tion in these expenditures is

$1,035,000, consisting
principally of dividends from subsidi¬
ary companies.

anticipated

in 1955.

SUMMARY SHOWING SOURCES AND DISPOSITION OF

Sources

INCOME

Income:
YEAR 1934

Electric
Gas
.'Sales of

electricity to customers totaled
15,042,000,000 kilowatt-hours, or 1.8%
•over
those of the previous
year.
In

out-of-state gas

•addition,

increase

delivered for the

order

higher

pany,

account

•of

offset

our

higher cost of
purchased by the Com¬
rates

estimated

gross revenues

annually

liveries

for

others

exceeded

those

placed in effect on De¬
a full year's basis,

cember 1, 1954. On

by 5.0%.

share to

our

Disposition

1243,508,000,000 cubic feet,

feet, or 7.2%.
In addition, 71,092,000,000 cubic feet

•of gas was

transported for

use

.•steam-electric

and

88,259

were

129,077

»,

■

118,846,000

109,732,000

•

1,979,000

1,709,000

•

1,035,000

208,000

•••••••••(•■•■(•■a

$387,279,000

$364,313,000

year-end

purchased

.•service

as a

The

Company, were merged into this
Company on July 30, 1954 and August
31, 1954, respectively.

Company.

HBonds and

preferred stock with

struction program.

<381,000 shares of

Net

an ag¬

common

stock and

Based

were

sold to refund

ing Series V Bonds.

outstand¬

our
.

•

6,377,000

73,980,000

ete.

paid

on common

Totals

•

income

■

8,442,000

10,968,000;

22,179,000;

7,776,000

39,090,000

35,172,000 i

91,309,000

•

on income

5,629,000

4,504,000

19,546,000

17,783,000

16,266,000

15,722,000

35,553,000

29,689,000

iii..

11,220,000

14,2S2,000

$387,279,000

$364,313,000

Average Number

End

Dividends Paid Per Share
in the

i.i

•

Common Stock

Shares Outstanding

Period Shares Outstanding

Business, Per Share

Excerpts from

1954

again directed to the

heavy burden of taxation which

must be reflected

charges for utility service. Our total

our

approached $104,000,000 in

1954,

that

revenues

from all

investor-owned

utilities

Gas and Electric

are

gross oper¬

Company

utilities,

about P. G. and E.

ket St., San Francisco 6, California for
our

&
E.
Serves 46 of

Annual

$2.10
$1.02

often able to

a copy

equal to that

of the

now

assessed

utilities and their customers.

Harnessing of atomic
power purposes

for commercial

energy

continued to

the attention
Company in 1954. In association with the
engage

government-owned

complete tax

ex¬

pany group,

it continued research

construction

and

for industrial
There

power

government-owned util¬

operation of

the design,

atomic reactor

use.-

certainty, of

course,

that nuclear

tional

provide utility service at
can

investor-owned

plants

ever

will be competitive with

conven¬

plants. Studies made to date, however, give
promise that a significant nuclear power industry

eventually will be developed,
fully justifies

industry

write: K. C. Christensen, Treasurer, 245 Mar¬

are

investor-owned

utilities. Advocates of socialization of the
utility

STREET

1.20
►.69

ment-owned utilities
the

which increases the

apparently lower cost than

FRANCISCO 6, CALIFORNIA

you'd like to know

avoidance

burden of other taxpayers,

prospect

which

activity.

are

quick to seize

entials to further their aims,
the

•

$3.12
,$2.82

other member firms of the Nuclear Power Com¬

sources.

favored with almost

result of this tax

ities

SAN

•

tax bill

portion

emption. It is little wonder, therefore, that

MARKET

5.89
1.88

Annual Report:

Attention of stockholders is

the

245

.......

Common Stock

charged to income absorbing 25.3% of

gas and electric company

7,011,000

65,503,000 '

...

......

.......

40,066,000/

93,186,000

•»•••

Earnings Per Share

upon

these rate differ¬

exemp¬

tion accords government-owned utilities.

Clearly, the only fair and equitable
rect this

situation is to

way

impose taxation

our

continuing participation in this

We believe the outlook for the

conveniently ignoring

tremendously unfair advantage that tax

Report.

Company in 1955

good, and that further growtE and stability will

be achieved.

cor¬

on govern¬
PRESIDENT

Counties..;
Calif

20,345,000

........

;In contrast to the heavy tax burden borne by

P. G.

and State taxes

..•

stock

50,994,000

•

etc. v

Earnings Per Share

ating

(pacific

stock

end-of-period shares out¬
standing, our earnings were $2.88 a
share compared with $2.82 a share in
the previous year.

exchange for securities of ac¬
quired companies. A $65,000,000 bond
was

common

a share
compared
previous year, both
based on the average number of shares
outstanding in the respective periods.

with $3.12 in the

con¬

assued in

issue

earnings for the

amounted to $2.89

were

In addition, about

72,000 shares of preferred stock

supplies, services from others,

Bond interest and other income deductions

Retained

gregate par value of $85,000,000
«old to finance our continuing

company

tric

result of the merger of Coast

♦Counties Gas and Electric

pany was

our
operations. The net
igain for the year was 244,422, of which
139,642 were acquired on August 31,

1954,

...

Dividends paid on preferred stock

acquired in February 1954.
and its principal sub¬
sidiary, Ccast Counties Gas and Elec¬

Special charges in lieu of and for deferred Federal

stockholders.

2,973,590 customers in all

branches

...

producers

pensions, insurance,

Control of Pacific Public Service Com¬

were

Taxes, including provision for Federal taxes

year.

supplying

depreciation and amortization

Dividends

the

Balance retained in the business
.At

Provision for

Of the total,
preferred stockholders and

common

•

Provision for

of stockholders
participating
ownership. At the year-end we

our

gain of 10,253 for the

V ;

generating
Company uses.

further gain in the

had 217,336 stockholders of record,

our

plants

jfor other

Power purchased from wholesale

number

increase

•of 16,455,000,000 cubic

1933

$252,664,000;

Income:

Oil and other fuel

experienced

YEAR

$265,419,000

•

Wages and salaries of operating employees

earnings.

Material and
We

operating departments

Totals

Natural gas

:Sales of gas to our customers totaled

7. 7

this increase will add about 20 cents

1953

revenues

Miscellaneous income

$7,073,000

others 943,(KM),000 kilowatt-hours.
•Combined sales to customers and de¬

were

Department

777777777777

revenues

Revenues from other

the

gas

Department

The Commercial and Financial Chronicle

(1844)

ing of the bank's countywirie op¬
through its 29 offices in

News About Banks

By ROGER W. BABSON

erations
20

CONSOLIDATIONS

the mounting cost of education and its impact

high and there is

BRANCHES

NEW

OFFICERS. ETC.

Bankers

and

REVISED

Chemical
since

CAPITALIZATIONS

One

facing

provide

way,

critical

the

money

for the mounting cost of edu¬
without
taxing
property

pay

cation

into

holders
the

source

one

problem.

help house

the increasing

1 a tion,
9,500,000
housing units
popu

about

But,
that

be devised

should

ways

teachers

can

so
the extra

earn

have

been

since

1945

1,215,-

that the first
eight years are done in seven,
and the last four years in three.

This

alone!

extend

school

the

1954

600

Roger W. Babson

they need. One idea would
the school day and

money

year

lyn.

its

thing

families have become so

ucational
cities

towns

are

pipe dream. At the college level,
the students of Babson Institute,

many

lpsing

now

branch

new

Abd

■

City

unit.

alone, to several hundred dollars.
for

demand

and

marked

•

President of

the

Since by law

years.

must

Dorsey Elected V.-P.,
Of First Boston Corp.

provide both facilities and teach¬
ers, we may well ask for Some
economies

which-

be made

can
♦

•

tj:

help keep costs down.
•

•

■;

■

»•

•.

•

■' ,t

built

automobile.

you
any
custom-built

afford

school?

It is

Office of

Education,

high time the U. S.

mately

well as the
various State Departments of Ed¬
standard

basic

schools, which
panded
tion.

with

plans

school

ex¬

readily

other

section

should

some

*■„

literally

cut

Cornelius

hundred

construction

costs:

The

100

First

announced

Standard

president.

plans should be used
given number of children,
with the extras that don't really
add
up
to better education for
a

being

Don't build
tar

that

cleared
of

long

before it is outworn.
sider

the

children

Let

and

suggestion

could

has been

teachers

the

in the land

brightest

make

re¬

cordings for radio and TV educa¬
tional
hookups.
The
children
could be tested

what

they had
seen
and heard by being given
true-false, multiple-choice ques¬
tions, and by having them mark
their

answers

IBM

answer

sheets that would be corrected
by

machine.

However,
cannot

the

out of

our

what I

teacher

measured

number

efficiency
in

terms

youngsters turned

schools each year. From
seen of some of the

have

educational

viceFirst

Philadelphia since 1934,

1948

and

became

assistant

products

vice-president in 1954.

recent

The

(Special to The Financial Chronicle)

ALTO, Calif.—James A.
Graham is now with J. Earle May

Co., 601 Bryant Street.

ant

formerly

secretary

Securities

an¬

Marine

a n

Midland

Paul

Bank.'fiT
of

Board

Directors

National

Bank

the

has

Trust

Leo

Co.

With Dewar & Company
(Special to The Financial Chronicle)

SAN DIEGO, Calif.—Richard A.
Maloney
has
become
affiliated
with Dewar &
Company, First
National Building.
He was for¬

merly with Wesley Hall & Co.

will

take place within
weeks, pending ap¬
of the merger agreement
six

proval

by State and Federal banking
thorities

the

and

banks.

au¬

stockholders

change in per¬
sonnel now staffing the Irvington
bank is contemplated under the
proposed merger, officials said.
Mr.

Condon

office.

the

become

Vice-

charge of The
Trust Company's Irving¬

County
ton

will

President

Under

the

terms

agreement,
stock¬
holders of The Irvington National
merger

ap¬

Bank & Trust Co. will receive 5Vi

shares of County Trust stock for
each share of their present stock.
There

Bank

The

and

Trust

Marine

Company of New

has

Corporation would pre¬
merging of the two in¬

cede the

stitutions.
would

ing

^Additionally, approval

be needed

from

supervisory

from

the

National

Under the

receive

Marine-

—

National

2,317
The

Midland 1

for each

stock

years

Bank

proposal,

three

offices

Queens in

Jamaica

160,000

Midland

National

established

years.

total

Corporation

Marine

Jamaica

1937

1.6

stock.

Bank

was

1924, and operates
in

the

New

York

borough of
City.
De¬

posits of the bank
1955

amounted

on March 31,
$29,085,846 and

total resources at

that time

were

an¬

Completion of the contemplated
would increase the num¬

merger

ber of offices of The Marine Mid¬

land Trust

stock

out¬

was

or¬

in 1902.
On- March 31,
1955, it has total resources of $3,229,461, with deposits of $2,949,009

included.
The County Trust.
Company reported total resources
of

$281,158,465 and deposits , of
$260,243,821
on
the same date.
Upon completion of the proposed
the

merger,

become
Trust

directors

the

ney

Company of New York

and

Irvington

members

attor¬

bank

The

will

County

Company's associate direc¬

tors board in the community. Mr.
Eddison will be Chairman of the
group.

The directors in addition

Eddison

Mr.

are
F. J. Elder,
Hunter, Walter C.
Jago, Joseph. E. Simmons, Dr.
Chesley E. Smith and A. P. Weiss.
Thomas J. Coyle is the attorney.

Alexander

$32,387,764.

Trust

shares of

and- ganized

Jamaica National Bank stockhold¬

would

922,950

standing and capital funds of
$16,395,247.
The Irvington Na¬

bank-, tional Bank & Trust Co.

authorities

Jamaica

stockholders.

was

88 persons and institu¬

are

tions

holding a total of 4,000
shares in the Irvington bank. The
bank has capital funds of $267,495.) The County Trust Company

ers

3,121;

Assistant

10, and

the number of offices

Lyon

personnel

Manufac¬

Company
President

was.

tional Bank

made

Wehle

Flanigan.
the do¬

will

the

are

Jamaica

Na¬

contemplated. Mr.

continue

Vice-

President of The Marine Midland

is assigned to

Trust

his

department,

When

proposed

the

merger

be¬

Company of New York.

comes

connection

with

was

The

William

Lawrence

Carroll

member of

tors

Charge
Personnel, Ralph T. Tyner, Jr.,
President, has. announced.
Mr.

the management consultants firm
of McCormick & Company, where
he remains a Director, is a grad¬

direc¬
Bank

uate

Trust

Company of New York,
it was announced on April 19 by
Jacob Leichtman, President.
Mr.
Holland, formerly a Director of
which

April

merged

Commercial State, is

Simon

Holland

Bank

with

Presideht of

& Son,

Inc., steel
construction,
and
President
of
Jackson Management Co.
He is
also

member

Institute
and

the

Steel

Associated

American

Construction,
Builders

Plains,

Carroll, who leaves the employ of

Industrial

White

N. Y., as Vice-President in

State

the Metropolitan

has been elected

Commercial

Westchester

♦

the board

J.,

National

Company

has

effective
to

increased

March

$750,000

Bank

Allenhurst,
its

capital,

24, from $500,000
enlarged capital

the

having been brought about by the
sale of $250,000 of new stock.

has

joined the staff of National Bank

associated with'the

firm

Trust

Allenhurst

Manufacturers

banking

communities throughout West¬

chester.

appointed an Assistant Treasurer
during that year.
Prior to his

Jack J. Holland

was

It
un¬

of the County Trust

name

both

Midland

Dempsey-Tegeler & Co., 465 East

MacLaughlin

was

endorsed

institutions.

Jamaica National Bank by Marine

Vice-President

turers
known

Bickel

Queens

York, a Marine, Midland Bank.
Acquisition of the stock of the

Shields & Co. for several years.

Bickel has become associated with
Mr.

located in the

been

both

Street.

National

He is a grad-: of Marine Midland Banks in New
College and will York State to 142.
v
be in charge of the central credit
Mr. Pope stated that if plans
department. ) r»*«j
for
the acquisition
and merger
On
April 20 the appointment
were
completed, no changes in
of William W. Lyon as an Assist¬

Dempsey-Tegeler & Co.
Calif.—Frank

uate of Harvard

Trust, he

(Special to The Financial Chronicle)

had

directors

Secretary irU4953.

advanced

-investment

Frank H. Bickel With

Green

Company

of Columbia

also

service in

veteran

World
*

The

County

White

Plains,

University.
of

four

War II.

that John

Boyer, Jr. has been

named

Representative

the

will

bank.

operation

with

work

Stuart

of
co¬

Webb,
Assistant Treasurer, in carrying
out Provident's policy of further
strengthening its customer and
correspendent bank relations. Mr.
Boyer was associated with the
bank and

public relations depart¬

Company,

Provident

Trust
*

announced

Vice-President

Company

announces

of Philadelphia before

liman, to its executive staff.
a

■

Correspondent

the addition of Mr. Donald M. El-

viously

Trust

Philadelphia
W.

ment of the Federal Reserve Bank

Trust
N.

years'

Provident

PALO

PASADENA,

Midland

territory
being the State of Ohio. Mr.' Lyon
joined the bank in 1952 and was

Adds

Jamaica

Wilson,

is expected that consolidation

the

Andrew

proved the plan which is expected
to lead to a merger of the Jamaica

joined the bank in 1947 and

mestic

J. Earle May

and

Chairman and Joseph E. Hughes,
President of
The County Trust

effective, The County Trust
Company will have 30 offices in

Mr.

made

cut

hire

with

Dorsey

Associated

Dorsey was appointed man¬
ager of the investment department

teaching costs
by doubling classroom size. Then
we

election- of

Mr.

taxpayers

Improve Teacher Efficiency
The

Corporation,
York City,

the

con¬

—rather than glorify some mayor
or architect.

that

Boston in

New

mor¬

outmoded

monument

will

out.

Boston

Broadway,

has

for

child

win

Dorsey

the

Jamaica

on>April 18 by Horace
Flanigan, President. Mr. Mer¬

was

Cornelius

your

community

arise.

need

are

ways

the

There

movaole
of

both

Wehle, President of the Jamaica

nounced
C.

the

Club

of-New York

Company

popula¬

and

proposal by Marine Midland

National

dinner

President of Manufacturers

Unit sections should also be

made

President and David J. Con¬

son,

Company

Corporation

appointment of Gaius W.
Merwin, Jr. as an Assistant Vice-

basic

for

* \v

known

announced

was

a merger agreement
bearing
the signatures of W. Barton Eddi¬

der the

Committee

The

some

readily be

can

the

Company

April 19 by Bayard F.
Pope* Chair-man of • the Executive

the

overseas.

became

Y.,

National

service

99,376

moved

804

formed

was

elec¬

Vincent

resident of

Trustee

borough

with
a total enrollment of 254.
Today's
membership represents approxi¬
group

Can

ucation,

and

in thb U. S.
custom-

Caristo,

Construction

National

served

totals

more—now

afford

cannot

who, have

those

High
You

in
First
Quarter Century

City's

Kings

the

Board

Mr.

nounced

I^edeke

membership
*•»

•

the

Bank of New York

Around-the-world

Toastm aster.

Too

Costs

briefly and

Chairman Ernest W.

(

Construction

School

members

the

announced

stock- of

S. Rockefeller,
bank, addressed

the

The

of White

stitution

James

present.

cational facilities during the next

Trustees

Corporation to acquire the capital

—

edu¬ •and
taxpayers.

and-

Bank

sponsored,

that

April

*:■'■*

•

family, the ; loss often
amounts, on the educational bill

Plains,

April 14 when it

Trust Company

Polyclinic Hospital and the Italian

agricul¬

Egyptian Government.
*

our

County

The

serves

Administration, do four years
The Quarter Century Club of
of college • work in three — and
after graduation
make an out¬ The First National City Bank of
standing
hnai-k
f6r themselves. Neiy Tork and City Bank Farmers
This might be tried fot the lower Trust Company held its 19th an¬
grades as well.* From such, all nual banquet at the Hotel Afetor
will beriefit
children, teachers, on a April 14 with 1,969 diners

per

We know there will

fully accredited College of Busi¬

methods

tural

Board

isto

Sarwat

industrial. and

modern

meeting

Caristo.

Located

Khalek

Brooklyn is President of the Car¬

April 19
Cairo, Egypt,

58th .overseas

the

appeared

Co.

Irvington,

proposed
Irvington

don, Cashier of The Irvington in¬

York opened on

New

its

Trust

Board of Guardians.

National

First

The

Com¬

for

lyn,

ness

on each new house built.
there
is more than
one

money
Where
child

that

facilities

and

is not

large in proportion to existing ed¬

tion

Pasha,-the Cairo branch will be
building boom has given impetus Thereby we save two years for in charge of Donald M. Hykes,
to our national prosperity, but it the children, as well as money for
Manager. The only branch of an
has created problems galore at the increased salaries.
American
bankin
the
Middle
We can make our plant more
school level.
Most, of thetfe new
East,
First National
City
will
give
teachers
a
homes have been purchased
by efficient • and
serve
both American and Egyp¬
raise. J, We
might tian business interests by: facilir
good young couples who want de-? much-needed
cent places in which to raise their even help solve the problem of
tating the growing trade between
delinquency by keeping our kids
-families.
;
the two countries, > the result of
busier. This sort of
These

County Trust Company of Brook¬

York

the

Bank

State

Resident ViceFulgenzi,
who

Mr.

National Bank

into

Bank

New

consolidation

Metropolitan

the

April 14 issue, page 1742.

only

built
—

Havana,

appointed

Manager at the
Cuba,
Branch,

formerly

genzi,
Bank's

today

worked

our

mercial

April 11, Benjamin Ful-

joined National City in 1919, will
if
its
employees continue to make his headquarters
from 8:30 a.m. to in
Havana, in charge of the 10
2:30 p.m., vacationed from June 25
Cuban branches.
i
to Sept. 5, and its factory or store
John P. Finnerty, formerly an
lay idle as much as the average
school
does?
It
is
true
that Assistant Manager, was appointed
teachers have papers to correct, a Manager at the same meeting.
lessons
to
prepare,
and extra¬ Mr. Finnerty is assigned to the
curricular activities to supervise! Bank's Bedford Branch in Brook¬
salt"

the

rate

held

merger

Industrial

President/

sharp

birth

the

First

Reference to

York.

Greater New

of the

The

Directors

"earn its

would

What business

house.

rise

regular meeting

National City Bank of New York

was

Teachers Need More Money

poor-

The

the

At
Board

years,

voter today is how to

every

Bank

served

Arrangements

I
think
nowhere near
enough stress has been placed on
the quality of education which our
children are receiving.

problems

Exchange
had

and

"■

eleven,
for increased teacher Salaries.

day and school-year be extended to save two years in

and, in this

Corn

1933

Vice-President since 1947.

lack of teacher efficiency. Suggests school-

Westchester communities.
Mr. Elliman had been with The

NEW

Mr. Babson contends more economical
Says school construction costs are too

property taxes,
schools are needed.

Thursday, April 21, 1955

Trust Company will pertain to the
further development and servic¬

Cutting Taxes for Schools
Commenting

Pre¬
the

The

First

joining the

staff
*

1954.

National

Bank

Philadelphia has named David J.
Olsen

Comptroller

Chemical Corn Exchange Bank in

William

New York, Mr. Elliman will have

the

succeed

been

same

title when

Westchester bank
His

joins the

May 2.

position with The

County

dent.

Hurtzman

who

has

serving in the dual capacity
Comptroller and Vice-Presi¬
Mr.

1920

Olsen

and,

joined the bank
1943,

was

ap-

Volume

Number 5422

181

pointed

Assistant

The Commercial and Financial

...

Cashier

July

office
the

appointment to the
Comptroller is a move

part

First National

his

resents

from

time to
activi¬

Secondly,

ties

greatly
tion

both

local

and

American

ing,-Mr.
the

scope,

Institute

Olsen

has

meetings.;

member

tional

Association

tors

and

•

■

1.-,•

-v

•

April

Cpmpany

Bank

to C. Alfred

LOUIS,

pany

Bailey & Company.

Mo.

with

Mueller

Building, has been changed

—

Inc., 409 Olive Street.

Hemphill, Noyes Adds

Joins Founders Mutual

(Special to The Financial Chronicle)

Now

Lindquist Securities

•y »

(Special to The Financial Ch.;onicle)

SALT LAKE CITY, Utah—The
>; DENVER, COLO. — Joseph G.
Mass.— Bernard J.
Bagdis has become associated with firm name of Haley & Company, Chapman has been added to the
Hemphill, Noyes & Co., 10 Post Atlas
Building, has been changed staff of Founders Mutual Depos¬
Office Square.
He was formerly
to Lindquist Securities.
Griffith itor Corporation, First National
with du Pont, Homsey & Com¬
Bank Building.
C. Lindquist is a principal.
*
...
pany.

BOSTON,

life

Audi¬
a

Associa¬

.*-/■ V"

"
A-

the Union Trust
District bf Co¬

of The

lumbia, of Washington, D. C., has
increased
000

its capital from' $1,000,a result of a
$1,000,000.
V

$2,000,000

stock dividend of
•5

J-

W. Ernest

Allen, Jr. was elected
present month as Assistant

the

Vjce-President of the Barnett Na¬
tional

Bank

Mr. Allen
ant

Jacksonville, Fla.

previously Assist^

was

'* of /' the

Investment ; Officer

Virginia

Trust Company of Rich¬

According : to

mond,. Va.

|- paper Mr. Allen,

the University of

attended

modd

local

native of Rich-/

Richmond,
later
completing ?a
course In security analysis-at the

Bank,

i'lfappyer

:He

New' Y6^k.
with

associated

became

Vir¬

the

ginia Trust Company in 1940 and
institution .until

that

served

Qu on sets—a dairy cattle housing demonstration and research project—are at one of the
colleges and universities with which National research .men work to improve farm buildings.

'^Tliese two

last

•

marry

month,
leave

with

The

incident

the

Com- i

Bank

stock dividend of $1,000,000

The

City

For

.of

been

en-

there

additional

from

the

000 and

sale of $1,000,000 of

farm

"The

Bank

Western

First

has received

permission from the

bank's

office

for the

site

that

and

site

building

Bank

First Western

ating

now

l\s

■

Calif.,

Cruz,

Santa

stock

mon

with

$150,000,

of,

was

First Savings Bank of Santa Cruz,

Calif.,

under;

and

effective

Feb.

ness

Bulletin
the

28,

;
Yf

National

Bank

Calif., at

declared

the

for

the

Anglo
of

San

California

months'

period

com-'

rhencing April X and ending Sept.

Grain drying

—

cents per share

weather, National Steel's research

t
..1

vital role in giving

standard of liv¬

ning

is equipped with

and wherever steel
to serve.,

literally eat their way into

gain metal. And it is our constant

reduces

goal, through research and cooperation

construction,

industries;

has been called upon

Truly, steel is America's great bar¬

bills and labor costs. And with

post-free

fields. It has solved many

many

problems in our automotive and can¬

cattle feed them¬

mangers,

handle

cattle

NATIONAL

much

and

keep

with

customers,

our

continue to

produce still better steels for a better
America
now and in the future.
.

-<•

CORPORATION

STEEL

PITTSBURGH, PA.

GRANT BUILDING
"Quonset" is

and storage

was

is payable 60

of better qual¬

was

..shelter. This feature sharply

easier

played

nation the highest

hay

selves and

feed

Steel has
our

ing the world has ever known. It works

the Quonset.

Tackling the farmer's eternal problem
of

working with

production would decline.

movable

both possible

and economical—steel.

hay dry¬

that by using

When this Quonset

strength is in

building that

announced by Paul E.
Hoover, President: The dividend
30, it

.of milk

well. Its great

Steel found

Owning

bank's capital stock

in acceptance and

universities throughout the

during World War II

Francisco,

recent regular meeting
dividend of $1.20 per

six

' - leges and

the

the metal that makes it

merce as

the working tool con¬

ity, cattle would eat more, and cost

livestock

National" Steel's

Steel believe

working tool concept of buildings will

highest quality,

Hay drying and cattle self-feeding

this building,

already had gained international fame

Directors

them

What about the future?

at National

continue to grow

National

buildings in this

nation—started with
*

of National

jobs, take much of

the farm,

from their har¬

Livestock specialists

develop their working tool con-*
on

save more

ing and self-feeding barn.

specialists at leading agricultural col-

dated March 28.
*

men

saw

many

expensive machinery. ~

recognize

grain storage buildings

Further study of

'■

research men—working closely with

Washington,

'cept

according to the
Comptroller of

Currency
.

the

■

sheltering, feeding, caring for

expand in application—not only on
the farm but in industry and com¬

of thinking

do much of the work themselves.

title
"

drying, conditioning, storing

animals; protecting and maintaining

;
owners

cept resulted in the Quonset

the work out of farming, let

-f

the

Santa Cruz,'
of the close of busi¬

Bank

'County

charter

the

under
bank

—

crops;

provide greater marketing profits, and

nailable

tools,
buildings. Tools versatile

enough to do
,.

way

are

reduce weather worries.

farm

the Quonset—

Stran-Steel

light. They

rather than

•

latter

new

Quonset

vests, keep crops at

Stran-

with natu¬

"working tool."

was

begin, research

new

com¬

merged with and into the County

our

idea that

new

Steel looked at farm

:;v

'•
-

'The County First National Bank
of

-y f i

i \ :

spoilage worries.

tools which

progress.

crops

and provide safe storage with

their steel

appeared. And with its

the

came

communi¬

is oper¬

framing and galvanized sheets.

plans
the matter of
settled.
The

57 offices in 42

ties.

ral air,

with

job

ing and aeration system, makes it
possible to dry grain

building pioneered by

fabricated

opening

would progress once

equipment.

farmers

finding Quonsets ideal for every farm

Quonset, equipped with a dry-

Today

'That building

Orland

new

progressive

Today's

•

developments in

building should be

of, directors, anApril 14. He said ne-.
gotiations already were on for a
on

suitable

This

machinery.

arrival

board

nounced

facilities clean with power

adapted the Quonset for grain

plowing, planting,

New

Steel Division

State

Superintendent of Banks to
open an office in Orland, Calif.,
T.
P.
Coats,
Chairman of the

•

"Working Tool

drying and storage.

•

tremendous progress. /

began catching

and

Company of San Francisco

Trust

".;,

Then, after World War II, the barn

hybrid seeds, insecticides, fertilizers,

stock.

new

was

harvesting.

resulted

amounts

stock dividend of $1,500,-

it, out in the fields,

New methods of

to $10,000,000 from $7,500,000..

The

j.' ■

larged to the extent of $2,500,000,
having (April 1) been brought
up

change.

But all around

men

old-fashioned

the

^generations,

barn didn't

has

Texas,

Houston,

if-

and

Bank

ti :i--V

of new stock.

National

rr,

■

•

as of April l a
capital of
$4,000,000, increased from $2,000,000;
the enlarged capital was
brought about by the addition of
a

ports

the sale of $1,000,000

;

of San Antonio, Texas, re-

merce

;

National

exception

the

absence

World War.

W.
Com¬

James

Slayton &

Na¬

of Bank

National

* :v

Fran¬

(Special to The Financial Ch onicle)

ST.

Bailey, Scott & Co., Mercantile

many
a

the

tion of Cost Accountants.

;

San

Sr.,

Haas,

cisco business executive and civic

With Slayton & Co. Inc.

name

Comptrollers ^ and

member of the

per
share.
Anglo has been

/■; Mr. Hoover announced also that
Walter

Company

$2.40

DALLAS, Tex.—The firm

Bank¬

Lecturer

and

Now C. Alfred Bailey Co.

associated

represented

Philadelphia Chapter at

national

$2.00

Strauss

Levi

dent since 1928.

rate

quarterly.

can

levels

national

member of

been

since 1919 and has been its Presi¬

paying semi-annual dividends - of
$1.00 per share, payable 50 cents

be given the full-time atten¬
they require. Long active at

now

the

increased

dividend

annual

has

Haas

with

increase

indicated

Since Jan. 1, 1953,

responsibili¬
which have

the

Comptroller

bank's

the

ties and added administrative du¬
ties.

per

commercial

increased

elected

Mr.

accomplish two objectives. On the
one
hand,
it
will
permit
Mr.
Hurtzman to devote

was

the board of directors of the bank.

Oct. 1, 1955 to share¬
holders of record Sept. 12, 1955.
The newly declared dividend rep¬

His

leader,

1955 to shareholders of
10, 1955, and 60 cents

(1845)

record June

charge of accruals and statistical
division.

Chronicle

and operating Great

Company

•

registered trade-mark.

Lake* Steel Corporation •

Furnace Corporation •

Stran-Steel Division •

Weirton Steel

Iron Ore Co. • The Ilanna
National Mines Corporation

National Steel Products Co. • Hanna

The Commercial and Financial Chronicle

(ic:5) ]

Thursday, April 21, 1955

...

statistics

elaborate

Britain to Continue

Co itrol of Capital Issues
By PAUL EINZIG

helpful to administrators,
economists, and businessmen, are
practically non-existent in Great
Britain. The government is being
and

excess

this

made

LONDON,

Eng.— Just before
adjourned .for Easter,

Parliament

the

bank

the British

tinctly

ferred decision not to discontinue

cumstances the

the

Capital

loan

credit transac¬
in

excess

50,000,
under

came

fire

the

part

Con-

servative

moting

of the ways

one

in which inactive

bank deposits would become con¬

active

into

verted

The effect of such

the

tend

bark

that

same

"corresponding inflationary
in the volume

crease

Mr,

Butler

Dr.

haul

his

an(j ^ere

expansion of credit if at the same
time he had opened the floodgate

growing

pressure

duce
ties.

the Chancellor

him

terminate

pointed

was

maintenance
trol

wag

its

tions
was

was

recent

proportion

applica¬

by the Committee
low in recent years, the

not

It must have been
very tempting
Mr. Butler to achieve
popu¬

for

larity

Conservative

yielding to this
months he

circles

was

liberal¬

indicated

also
to

yield

its

Con¬

paper-work

the various

with

doubt

involve

any

the

Parliament

their

best

view

the

growing

announced

the

Tucker

election
Robert

its predecessor, E.

Bay

Christians

member
of

after

having

the

San

and

Jews

that

conditions

in the meantime.

have

about

changed

Indeed it is per¬

Oakland, California.

past

prior

and

years

associated with

was

thereto

Halsey Stuart

Chicago. He is a member
City Council of Palo Alto.

the
Both

missible to speculate whether the

men

directors and sub¬

are

ment advisors and dealers in

within

its

now

concession

jurisdic¬

he has made is to

from

empt
tions

now

this

ex¬

possible without loss of

were

prestige.
Such
fact

retrograde step
in the sphere

was

taken

stalment

selling.

in
in¬

companies, issues

of stocks

parent companies for
issues of shares to redeem

cash,
leans

to secure unsecured

conversions

renewals

rities, etc.,

will

government

loans,

secu¬

from

exempt

control.

Owing to the newspaper strike,
the imminence of the adiournment
of

Parliament
and

cess

form

was

for

the

Easter

obscure

re¬

technical

which the announcement

made,

attention

the
and

decision

escaped

comment.

-Those

Conservatives who noticed it and
appreciated

its

significance

con¬

sidered the concession
disappoint¬

ing.

The

wards

step it represented

to¬

freedom

nificant,

even

was
indeed insig¬
though it admittedly

relieved businessmen of much in¬
convenience.

The fact of the matter is that the

government is at present
mood

for

freedom"

strictions,

not exceed

that

most

the

fact

that

is so.slight

remain

This

entirely

indicated

during

sharp expansion in the

ber

vehicles

types

sold

payments.

bicycles

against

fur¬

num¬

deferred

•

radio

and

vision

sets

pand.

The

only

industry

have

tele¬

been

appears

also

continued

ex¬

which

adversely
furniture industry,

affected is the

payment

adopted

before

of controls.

which
tice

man¬

such

make

ap¬

inexpedient for the time be¬
proceed

much

further

direction.

Notwithstanding the increase

the

widely
reimpesition

introduced

this

well-known

Wolf son

—

prac¬

financier

rities and

The firm

acts

secu¬

established in May,

was

1948.

strange

nighly dynamic and con¬
figure of that name—

was

"in

suggested

order

that

keep

the

selling
did

Wolfsons

the door."

Although
the United

garded

role

the

instalment

SAN

DIEGO,

Passarino

has

Calif.—Irving

become

associated

with E. S. Hope & Co., San Diego
Trust & Savings Building, mem¬
bers

the

Exchange.
been

Los

Angeles

Stock

Mr. Fassarino who has

the

investment

business

for many years has
recently been
with Wesley Hall & Co.

Goddard Adds To Staff
(Special to The Financial Chronicle)

BOSTON,
Bradley has

Mass.
b*en

the

during

recent

came

years

re¬

having replaced Britain
of

movement

the

spearhead

toward

in some respects even
today sentiments of economic lib¬
remain

stronger

in Brit¬

ain than in the United States.

The

citizens

some

and

higher tax brackets.

at the

banks,

the

more cur¬

purchasing

increases further.

power

pact

and

The im¬

citizens and firms is

uneven, as many find
themselves at a further disadvan¬

tage than before; others who
not

disadvantage

faced

were

find

now

with

higher
corresponding in¬
in their sales prices, with

without

costs

or
disappearing,
or
negative profit margins; and still

narrower,

others

better off than before.

are

This

goes on
and on,
with each dose of inflation requir¬
process

ing and leading to the next, while
at every stage, there is the com¬
plaint of lack of money and the
need for

erratic,

come

find

Gradually

more.

is introduced.

eiement

and

new

Prices be¬

business

-men

increasingly difficult to
This adds to the confusion

plan.

high

and

unevenness

products, the

The

aura

products

of development.
prosperity continues,

but

there are many who realize
ruefully that they actually could
do

the

products

inflation goes on far enough, into

further, causing a great¬
agricultural prices. If,

hyperinflation such as Germany
experienced from 1919 to 1924 and

fall

/or

demand

industrial

now.

flexible

nr'os

and had

fall in

demand,

would

have

and

had

bopn

falllen with the

all around

p.ices

declined,

but

output

employment would have been

maintained.
stable

new

which
was

farm

Prices would reach

level

the

that point at

demand

for

money'

satisfied."

ernment

Everything

not necessarily
right, for the impact

will be very uneven,

people

and

groups

helping others
positive

right.

will

out all

come

every¬

all

out

come

heloing

deal,
and bringing
great

some,

some

disadvantages

others;
and it is possible, even likely, that
those who are at a disadvantage
to

will outnumber those who

will

and

the

very

benefit,
this

ones

is supposed to help.

program

sales

1920's,
production actually de¬
clines, and the nation is worse off
physical
than

before.

Long before hyper¬

inflation begins with a flight from
the currency, more and more peo¬

ple

are

when

off than

worse

And

off.

always
more

are

the

better

complaint
is needed,

money

actually the trouble is that

there is

already too much money
by the government's

generated
deficit.

Inflation is said to be
When

tax.
the

the

over

The

to the

has

now

reduced by the

the tax.

turned

which

pay

power

amount of
are

unjust
levied,
it find their
an

tax

new

people who

purchasing

the

proceeds

government

spending

In other words, goods

monev.

which before the

new

tax

was

im¬

posed people could have they are
now deprived of having.
Part of
their

standard

living

is taken

Those goods or other goods

away.

the government instead.

go to

declining, it is be¬
many people cannot or will
not buy at the prices asked.
The
goods they are required to give in
are

were

If the

France endured in the mid

program of gov¬

expenditures, and

will

when their incomes

less and prices were lower.

arises that

Yet in the program advocated
by the prominent economist, out¬
lined above, there is no hint of
this problem. All that has to be

cause

Clara

—

added

the

and

in¬

issue

rency, and the flow of

flation is
wise

deprives

which

In¬

tax too in that it like¬

people

goods

had

enjoyed before
the inflation, and these goods have
gone to others, who have acquired
new purchasing power.
Inflation,
they

return

applies to individuals buying their

Bradley

like taxation, takes away from one

standard of living and to business

group to

was

previously with Blair

Co., Inc.

Planning

(Special to The Financial Chronicle)

BOSTON, Mass. — Richard C.
Josselyn and Joseph M. McCarron
with

Investors

Planning
Corporation of New England, Inc.,

Devonshire

Street.

economic

Mass.

has

Jay

—

become

Sidney

associated

Kaufmann
Mr.

Co.,

Gordon

was

previously with Keller & Co. and
du

Pont, Homsey & Company.

With Central Republic
Neb.

Dendlinger is
Central
nam

—

now

Republic

Building.

Lawrence,

are

This

system

through

public

make-work

their

they

resume

injection of
er

into

the

sales
increased,
change their minds

own

may

the

purchases.
new

But the

purchasing

economy

means

pow¬

that

comoetition

for
goods and
increases, and, if it is ef¬
fective, some prices rise.
Some
who were already unable or un¬
willing to buy now find them¬
selves worse off than before, and

services

sell

are

better

off

they can
advantage;
while
as

connected with

Company,

and

some

(Special to The Financial Chronicle)

OMAHA,

they
give.

can

projects.
Some of these people who were
unwilling or unable to buy will

and

(Special to The Financial Chronicle)

BOSTON,
with

that the government injects
purchasing power into the

works

find

Joins Jay Kaufmann Co. ;

Gordon

than

buying supplies, raw mate¬
rials, partly manufactured goods,
and finished goods for marketing,
and hiring employees.
Now sup¬
pose

now

are

willing to give

give to another.

firms

Two With Inv.

economic

freedom,

goes

staff of J. H. Goddard &
Co., 85
Devonshire Street, members of the
Boston
Stock
Exchange.
Miss

Hotel Touraine.

States

thing

(Special to The Financial Ch-onicle)

when Mr. Butler adopted his

restrictions

this

dustrial5- unemployment.
Because
of the
industrial unemployment

done is to start

Passarino With E. S. Hope

are

troversial

eralism

active

are

underwriters, distributors, invest¬

The head of the firm

had

was

named

came

now

even

McAn¬

Thev

in which the practice of no initial

policy,

not

the business.

motor

Instalment business in

and

stockholders

Co., Inc.

the

ther

various

March

coincidence that both Britain and

with a good
opportunity for lib¬
eralization, and he made extensive
use of it. Conditions in 1955. how¬

same

initial

restrictions did not prevent

from

two years,

trades

unaffected.

tions. Economic improvement dur¬
ing 1953-54 provided Mr. Butler

pear

which

under

re¬

must, be at least 15%
period of repayment must

and the

and

ing

tne

payments

be described as a
Liberalization is a luxury
which can only be .indulged in
amidst favorable economic condi¬

the

the United States should have
just

means

are

extent

"dash."

ever,

The

continuing its "dash to

slow pace which could in
ner

n^)t

business.

drew &

Simultaneously

with the increase of the bank rate'

transac¬ to 4%% Mr. Butler announced
which do not involve the;
'the restoration of a moderate de¬
raising of new capital. Thus in
gree of restrictions on instalment
future acquisitions and
amalgama¬
any

tions of companies, the formation
cf new holding

stantial

depres¬

reduced

industrial

the

secondary

the

industrial

fa ,1s still

& Co. in
of

fall still further, causing more in¬

Mr. Cumming has been with the
and its predecessor for -the

evil
the

farmers

purchases

resi¬

comes

So¬

and

intensifying

Because

prices

Security Analysts

Francisco.

produces

sion.

the

The disparity
halves

two

system

director of
American Cancer

the

effects,

H. Rollins

increasing, considerably the mini¬
mum
limit beyond which trans¬
come

between

is president of the Oakland Board

Education,

disastrous slump.

Mr.

Sons for the past 26 years.

After long hesitation he has
decided against it. The only*

industry prices stay up,
but output and employment suffer

Tucker has been with the firm—
•and

goes on to

struction

Cum-

Presidents.

Boulding

instance, prices fall,
often
catastrophicaily, wh.ie output and
employment increase. In the con¬

David

and

Vice

firm

doubt

creases

prices fluctuate."

for

ander

monopolistic industries
likely to remain rela¬

point
out how a "mixed" system inten¬
sifies depression. "In agriculture,

Of McAndrew & Go.

ment

that

are

themselves

Then

SAN

dent of

straining at gnats
swallowed camels.

fact

while

having

can

are

the

long pe¬
likely to

over

all too

are

unemploy¬

tively stable, while output and
employment fluctuate.
In com¬

Tucker, Cummhigs VPs

that,

But there

the

firms

petitive industries output and emplovment are likely to be stable,

now

prices

tance of instalment business.

do so, or at any rate whetheV*
government would not be tempted
to meet the opponents of the
Capi-, in the changed circumstances to
lal Issues Committee
halfway by restore some of the controls if

actions

occur.

ciety and the National Conference

liberalized cotton,
metals, etc., the govern¬

and

resources

riods of time

impor¬

few

and newsprint, two of the
remaining commodities which
are still subject to direct govern¬
ment
control.
It
may
well be

ment

attempt that would
making of declara¬

jute

tion.

con¬

tions for statistical purposes. Yet
such statistics are badly needed

East

imports

liberalization

the

purchases.

government finds the costs of
the things it buys rising, and the
deficit becomes larger in
spite of
on,

structure

buying now find
and they must

serious dislocations

servative pressure demanding the

by* it

For.many
hesitating whether

pressure

govern¬

toward

attitude

justify the departure;
grains,

from the principle of laissez-faire.

the

arise

rising

costs

curtail

price

such

spokesmen

mings

refusal

was

practical significance of its activi¬
ties did

change

ization

refused

very

The

ment's

ative policv of restoring economic
freedom. It was also argued that,
the

public issues.

that the

out

contrary to the declared Conserv¬

since

for

government con¬

capital transactions

over

in¬

activi¬

FRANCISCO, Cal.—Alex¬
McAndrew, President of
the McAndrew &
Co., Russ Building,

with

inconsistent

would

declared policy of restraining

difficulties

might not arise under
system of universal monopoly

were

their

have,

of deposits.

during 1954,

Linzig

recently

certain

and

competi¬

others who

their

in¬

backbenchers

tion

perfect

in¬

which

such statistics.

until

some

monopolistic

are

approach

situation.2

system in which

some

au¬

Kenneth

the

trols, British business circles and

have felt that it

may

the

describe

dustries

deposits.

change would

op¬

Let

comes.

As the government costs
increase,
it must borrow more on securities

will

veto

page

of
universal
competition.
In
a
mixed system, such "as in fact we

overdose

connection

frustrate

its control on

had

activity would aggravate
the inflationary pressure.
More¬
over, the extensive issue of loans
and granting of credits would be

which has the

tion

the

Having

capital investment. Excessive pro¬

institution,

cir¬
government could

remove

enable

necessary

That

mittee.

any

"In

any

Com¬

Issues

right

ill afford to

remains dis¬

inflationary.

determined

Boulding

the part of

thorities to compile

undertone

economy

Mr.'Butler announced his long-de¬

when

gave

compulsory filling of
forms by businessmen that would

the

rate,

promises
rise to

vague

effect

Conservatives
pose

policy is consistent v/ilh the declared motive of restraining
expansion of credit in Great Britain.

The

that

emphatic protests

credit transaction
of £50,000, finds that because of the inflation trend,
loan

any

from

"Why Doesn't the Government
Do Something?"

by its Socialist critics
by economists to repair this

omission.

decision of the British Chan¬
continue the Capital Issues Com¬

mittee, which has right to veto

Continued

pressed

Dr. Einzig, in commenting on the
cellor of the Exchequer to

instalment

selling, which in the United Stages
are

Far-

there

But

between
tion

Boulding, Kenneth E., Economic An¬
alysis.
Harper
&
Brothers
Publisher,
New
York.
Revised
Edition, 1948, pp.
597-8.

difference

unplanned

vital

tax.

planned tax is levied roughlv ac¬
cording to ability to pay. This is
should

tax is levied

be.

Inflation

according to inability

Those least able to bear

pay.

the burdens find their burdens in¬

creased,
costs

vency

find

their

Inflation, even
is a de¬
just taxation, inflicting its

prices.

hyperinflation,

burdens

bear it, in

The

creased
will

joined

are

who

tor wages) and their sol¬
threatened by erratic move¬

ments

short

they

rising faster than their sales

prices

nial

and

those

least

able

increasing numbers.

claim

made

that

in¬

government expenditures

lead

conditions,
2

planned tax and infla¬

revenues

improved

increased

from

taxes

business

government
on
higher

earnings, and a balanced budget.
But in practice, it has not hap-

Volume

181

Number 5422

pened that way.
ernment

have

led

expenditures

mount

even

always

govern¬

continue

and the

more,

race

by higher expendi¬
happened in France

won

tures.

The Commercial and

higher tax

revenues, but meanwhile
ment

Increased gov¬
in excess of

expenses

revenues

and

Germany and other nations
Which have experienced it, and
it has so happened every time in
this country, in the 1930's, 1940's,
and 1950's, and in every preceding
period of inflation going back to
sales

declining, it is be¬
cause many people cannot or will
not buy at the prices asked. In a
democratic,
capitalistic
society,
are

business

decisions

made

are

millions of people as to how they
want to allot the resources avail¬
able

them, to
acquire what

enable

them

mark

nnvnn

came

communism,

4-U„

from

Germany the forces of commun¬
ism are the strongest to be found
in non-communist countries. Ger¬

cannot

the greater

Peabodv
/

•T

B. C. Morton Adds

■

Strand

Ore.—Don
affiliated

now

Blankenship,

Gould

Hodder

Pont,

DETROIT,
Peterson is

with

ton &

MICH.—Andrew L.

now

with B.

and

J. L. Levine

Boettcher Adds to Staff

with

tich

has

COLO.—Cyril

become

Het-

associated

conducting
from

offices

828

Lipton Opens Office
"

(Special to The Financial Chronicle)

here?
Is it not
to say that the great¬

happen

Seventeenth

Street,, members

(Special to The Financial Chronicle)

N* C. —H. Howard

the

Mr.

sibility of appalling blunders? In¬

with Carolina Securities Corpora¬

Conway Brothers of Des Moines,

Street

flation

tion, Insurance Building.

Iowa,

business.

proper

has

happened

here

many

RALEIGH,

York

New

Hettich

Stock

was

Exchange.

formerly

with

DENVER, Colo.—Robert Lipton
has opened offices at 2600 Clayton
to

engage

they want.
As
changes in conditions occur, they
change their policies to suit.

But

*188%^ 'V!

mistakes

ple

bound to

are

overestimate

mate,

they

and

these

and

must be corrected

sible.

too

mistakes

soon

the
be

goods

sold

it£il

are

for a time,
prosperity, then

that

abundant

pos¬

mistakes

prices anticipated. If the
too

and

direction

one

have booming

realization

But when the

all
we

underesti¬

optimistic

are

pessimistic,

Peo¬

occur.

9§B§Wm§MM

are

the

excess

great, recession and depression

ensue.

Yet, fundamentally, the process
readjustment is one that must

be made by everyone who

sponsible

for

whatever

tance.

business

their

capitalistic

re¬
<

|B'

privately managed
societv,
government

undertake

cannot

decisions,
impor¬

relative

iu-sU

this, and when

it tries- to do so, it may only post¬

the necessary adjustments
and prblong the relative stagna¬

pone

tion

and

the

1933

anyone

the

program

Harbor,

largest number
unemployed in

had

the

history. How
that government

our

say

look

back

the

over

GRACE'S Centennial .Year

pro¬

marked by

cannot help but feel that it is de-

pressingly superficial and frighteningly irresponsible. It is super¬
ficial because
find

what

out

because

happen after
It is irresponsi¬

the

program

of
visiting
haphazard,
ruthless, and irreparable calam¬
ity upon the many to the haphaz¬

danger

ficial

and

few.

It is super¬

irresponsible

because

the history of the human race has

afforded

instances

many

the

disastrous results of such experi¬
ments
One

again and again.
that ^intellect¬

repeated

might

suppose

uals" would know of these always

unsuccessful

episodes,

"intellectuals"

but

not

even

learn

versive,

communist

or even

Nothing

has

Russia takes
its

currency

business

enterprises

attainment of

sub¬

was

reinforced by the

well-established

position in the

rapidly growing field of chemical manufacturing
and

processing. This substantial expansion

of Grace's chemical

operations is part of a

program

industry making tremendous

strides in the service of mankind for

—Highlights of the Year's Operations—

•

Years Ended Dec. 31

generations

Sales and
to come.

emphasizes the forward drive that has

marked Grace's progress

been

revealed

in Latin America

in. agricultural

country,

one

is to

debauch

average

and manufacturing

enterprises... in world trade, transportation and finance.

these
tors

who

can

the

take

same

sort

found

<wer

cannot

with

say

happen here.

Germany,

„

o.LL

960,000

5,404,151

1.75

Per share—at rate of

Working Capital

$112,206,211

$113,489,590

terprises throughout the world,
write for a copy of the 1954
Annual Report to 7 Hanover
Square, I\'ew York 5, N. Y.

Current Liabilities

Fixed Assets,

2.5

Less Depreciation.$130,776,657

2.6

$111,034,389

$ 179,960,386

$ 159,133,638

4,119,493

Stockholders'Equity

3,667,580

13,697

9,876

Number of

Common Shares

Outstanding.

Number of Common Stockholders

and impose the

that

this

Symbol of Service

W. R. GRACE

throughout the World

but

CHEMICALS

•

TRADE

•

INDUSTRY

•

AGRICULTURE

•

FINANCE

.TRANSPORTATION

The hyper¬

inflation began innocently enough
in

IJ you would like to know
about W. R. Grace & Co.

Once

capitalism
complete
every individual per¬

useless

$ 12,535,688

Ratio of Current Assets
•

son.

state

Russia,

over

o.5U

backbone

society.

Dividends Paid

destroyed, their dicta¬

are

control

are

capitalistic

our

14,794,326

6,473,299

Net

inflation.

values of savings,
bonds, insurance of all kinds, fix¬
ed incomes, and pensions and an¬
nuities, and reduces to extreme
poverty
and
powerlessness
the
thrifty saving class and the con¬
of

of common stock based on
number of shares outstanding

Preferred

1953

$330,979,665

Common Dividends Paid.... ..$

...

This ruins the

servatives

Per share

the

deliberate

1954

Operating Revenues. .8413,401,'905

Net Income.

in the United Slates and

it. However, when

over

policies

in 1954, the diversity of its world-wide

fellow traveler.

ever

to even suggest

century

that foresees this

The program is irresponsible too
because, in our world-w'de fight
against communism, this would
play into the enemy's hands. This
is not to say that this economist

either

As W. R. Grace & Co. entered its second

-others' past experiences.

Chemical industry

were

followed out, the»*e would be great

ard benefit of

significant

expansion in the U. S.

effort is mad° to

will

the first impact.
ble

^v.;.y*.->*:" ** *

continuously

outlined in the beginning, I

gram

;:y.;Xv.'v.:.-:-.;X .'-:y.v

just prior

can guarantee full em¬
ployment and full production?

'/■' -V.-YS/y

large-

programs
As

Wmmk

-v,'

Pearl

can

Between

begininng

defense

scale
to

business.

wiped

out

the

181-14

Hillside Avenue.

Strickland and John P. Young are

securities
at

with

Company,

and

Boettcher

vine

business

(Special to The Financial Chronicle)

DENVER,

Two With Carolina Sees.

Opens

JAMAICA, N. Y.—Jay L. Le¬

the nation the greater the pos¬

C. Mor¬

Co., Penobscot Building.

Inc., Wilcox Building.

have to think that it

formerly

was

Homsey

Company
Schirmer, Atherton & Co. /

Blakely,

(Special to The Financial Chronicle)

BOSTON, Mass.—Dana C. Djerf
and James A. Hodder Jr. have be¬

associated with Kidder, Peabody & Co., 75 Federal Street. Mr.

(Special to The Financial Chronicle)

PORTLAND,

come

With Blankenship, Gould
'

(Special to The Financial Chronicle)

disaster, and

the need for self-con¬

trol and careful discrimination.

France, and Italy are great
civilized
nations.
What
we

the potential for

modern

right do

Two With Klddef

4-T

overwhelmed final¬

Italy likewise has suffered
inflation.
In
France
and

ther.

(1847)

completely. In its times, the latest since 1940, and
llirOQt
flf
threat of the greater our power, the great¬

PQvinnc

serious

ly
by
Naziism.
France
went
through a hyperinflation begin¬
ning innocently enough in govern¬
ment
deficits, and during
and
since World War II, the deprecia¬
tion of the currency has gone fur¬

many,

colonial times.
If

German

train

Financial Chronicle

Executive

Offices: 7

HANOVER SQUARE, NEW YORK 5

securities

Chronicle

The Commercial and Financial

April 21,1955 /

/.- Thursday,

(1848)

careful

The Solid Gold Chevrolet

ask

such

incentive

Shareholders in

President, Federation of Women

when

retire

American Business, Inc.

the ladies toward more frivolity

personal attractiveness at the company meeting. Maintains
privilege to criticize and hiss news reels, TV, and politicians
should not be withheld in case of corporate managers. Com¬
menting that this is the

of
this

moment

feel

Who

nip

closer

frown

will

this

dlvious-if effective^-

the

since

that

the

manager

teens

*?*.<<*?.
stockholders

you

can

who

Magazine may

the

have

vesting—was absent one day.

reported

had

but

prototype

I think it only

fair to tell

tutions

authors

asked

that

Wilma Soss

she

we'll sue her lor

annual meeting,

Exchange

Actually I feel as if I had been

for,

Meeting

Annual

the

them

dent

that Easter

out

wear

the one topheavy with flowers that looked so
wonderful on Easter Sunday and
know,

not

are

yet been

criticism

president

corporation.

last General Motors meet¬

At the

Del.

Wilmington,

ing

the

about

director

the

—

extend

not

does

Motorama

what

wonder

you

afterwards—is

meet¬

annual

with

That's

the place to wear
beau
catchers.
Numerically, the
chances for teachers are
better
ings.

than taking
well
at

least

who

women

attend

will

rela¬

and

turn up without

you

hat

gloves, they will think you
something out of the May Day

are

parade.
begins to think

woman

chances
are if she owns a share of stock,
if the meeting place is convenient
and lunch is to be served, if the
address is

the proxy,

not just on
probably

the proxy statement she
thrown

ing to
—it

instead of

away

Federation

the

Shareholders"
/l
aIo/?
suade AT&T to
men

small

its

meeting

—chances

meeting

place

address

decide to

stockholders'

see

what it's all

about.
Good

Let's

face

twice

decorative.

Cadillac"
the

Ulcers

for

it,

Ladies.

welcome

ment

trying

were

chance?"

sure, can

see

you

are

right, feminists to
when it comes to

—

curate

and

fair

cipher the mumbo jumbo

stockholders

than

the

proxy
statement
in
one
easy
lesson. These as you know—proxy

some

statements,

personal safety^

are

sent

mambo

not

which

lessons—

stockholders

that

send as F"any legal
possible to the manage¬

will

votes

ment

who

right

say

out,

you

are

holder

managers

cost

stock¬

holders plenty.

there

Mrs.

talk

sober peo-

are

Soss

before

Dinner

Meeting of the Delta Pi Epsilon, National
Honorary Graduate Fraternity in Busi¬
ness
Education, Women's Faculty Club,
Teachers
College, Columbia University,
New York.

than

stockannual

many

vote, just sigh your proxy
they are held in afternoons in¬
they will do the voting For stead of evenings or on Saturyou for what They want.
They days, when more businessmen and
nearly always recommend in bold women could attend instead of so
,

type that
the
are

vote Agaivst what

you

stockholders

want

and

they

required by the SEC to print

uninformed

manv

housewives,

pensioners, and retired persons all
whom

not

are

alert

.as

p™xy s^.emlfrlt for your Morton Adler, who recently

°n

consideration.
stockholders

This helps to save

from

having

finding

doesn't

the

x/Li..-

and

out

always

save

just one of those cosy little
forms of paternalism that private
courage

think

hasn't

to do

should take time out to

whether

argue

with

sentence

quite the
with—(I don't

yet

away

should

I
a

end

thP

tv,p

preposition)—at

least the management says it isn't

inp

You

because

might

logic will get

enough

well

know

you

that

stock-. OLxcnange

American

Investigating Committee about

^identify
themselves with the management
ages.

Some

want

—rin

advertising ?we call it the
appeal—or curry favor from
the management, incidentally not

snob

3
or

good way of getting an account
a

job.

Questioning
the

agement is

questioning
and
giving

me"

same

their
them

the

"Mr.
"I

will

and
you

illogical.
any
.

good... except

„

blushes and votes—men's blushes,
I mean.

judgment
self-doubt in-

own

Fairless

told

man-

them

self-satisfaction.

the
and

—

the

New

alone are stockholders in
and yet they do not have
protection of a secret ballot.
Many of you will need this pro¬
tection
to
get
action for your
ideas and express your views.

him"

Price of Security—Fear?

the

Cen¬

York

discre¬

employ-

250,000

the

Time
been
of

Secret Ballot

The

time

and

again

have

not

told

only by employees
their fears to vote independ-

handled

Over and over again, our mem¬

has

bership
the need

secret

have

are

Communism
new

but

mocracy, so
owner

and

voice

de-

You

said

kind

by law firms who in turn
big corporations.
believe
this
fear
is
largely

do business with

timorous

and

the

case

with
ates

de-

economic

Harried" 200
corporations
their interlocking director-

concentration

the

but

Steel,

in
the

owners

who had sent their proxies

it means share- to me because he did not approve
corporations, is of a letter written by me on the

something new within our time, steel strike
When you realize that a Senate in the New
study

unjustified
Republic

than name only, presi[dent actually took access to
Socialism are his stockholders list to write

far

ballot if we

economic

mocracy in more
not

impressed

been

eco-

which was published
York 'Times. TJ11®

the first time that we had
proof that management occawas

sionally snoops.

the United States,,
The snags to a secret ballot—
you
can
see
what shareowner legal technicalities in case of lawdemocracy can mean.
suits—are not sufficient in weight
As you all know, shareowners. to deprive the whole stockholder
nomic power in

legally are entitled to vote in the
corporation in which they own

electorate of its benefits and protection. The drive for a secret
voting stock. Indeed their func-, ballot was initiated by the Federtion,
in
addition
to
providing ation of Women Shareholders and
funds for the tools of industry, is I
hope it will be part of my
largely one of balance and checks legacy to the American people,
as
corporate citizens.
FurtherNow you may say this is all
more,
stockholders, many of you very interesting but I do not own
graduates
of
business adminis- any stock — actually only some
tration, will undoubtedly be among, io% of the people in these United
them
with
stock
purchase
and states do. We may not yet have
stock option

in fashion
be employees,
not they are em-

plans

now

—stockholders may
but whether or

also

ployees,

investors

ployers.

As such, it is up to you

are

em-

—»

mass

ownership

match

production but with inf'ation and stock splits which bring
mass

down the prices of blue chips, we
are

going to
^—

see a

tremendous in-

to use your votes to see that men crease in stock ownership by the
wnrnpn

havp

Prmqi

nnnortu-

„ni0ec um n». into * hoar

tato 3 ^

market,
"CTrainTng "and' a°dTnce~- S±»i,un,ess we
ment in

business.

the Dow Jones 'aver¬

indexes and

These

some-

are

the

things

that you should impress upon your
students because too many stock-.
holders think all they have to

is to mak°

isn't

to
or

buy100
even

five

shares of stock—but one share,
The Federation of Women Share¬

do holders

fast buck in the mar-

necessary

one

was

share of

born

when I bought

stock

the

billion

het and there is no more cynical dollar United States Steel Cor—
philosophy than to sell a stock poration and went to my first
because you do not like some stockholders meeting. I was
managerial practice instead of brought up to think that one vote
"sing your corporate suffrage (all anyone has in government)
iust as you would do in your is important—you see the power
borne town for the betterment of of education—and so I spoke up
conditions.
.
for my one share. After all, I
The

thing.

But you have to be very

Federation

Shareholders

It's the men —
excepting those, of course, here
present — whom you will find

emotional

Bant

by the Senate

to pay

me-

than

their

was
to see two million shares
voted in support of some of my
It Could Happen Here '
the
mother
of
the
economic proposals where I started with
We have, in reverse, the* con- suffrage movement — if not the one
share. What's more, I exMost
important pected—and still do—respect, not
Nothing fession of sins at revival meet- founder of .it.

nowhere at the

you

Meeting.

iF'xehanre

Stork

American

TPe

came

nf thP rhairman

rPoP1)P

when asked

though it
their money.

even

It's

Annual

Of course,

conduct

and

know

little

•

don't

stead

for

—

meetings. Perhaps that is because

gently.

approach.

cover

here

censored

discouraging

ine]y

the

laughter at stockholders meetings
is
good
for managerial
ulcers;

articulate

the

Perhaps nothing is more genu-

don't teach enough people how to
read
proxy
statements
intelli¬

all,

how-

city newspapers for records

practical

ques¬
tions there is much to be said for

after

aoivW.

fairness,

ought to be able to learn to de-

asking the More devastating
helpless

Out

enormous

fighting for control of ently from their employers, but
actually
by
stockholders,
botli
a railroad (he lost)—I was fight¬
men
and women, whose families
ing for our American way of life.
are employed or whose estates are

grumbled. You
why GM loves Wilming-

Del.

ton,

some-

for

votes

only

was

she

idea!"

very

of a proxy

guards to seize me as I tried
to prevent the railroading of the
vote before discussion. Mr. White

asked/ "The
A11C

was

tion.

tral

"Then
' him r a

'give

you

she

VX1

state-

was

hide

don't

„„7

finan-

she

control

amount

for Mr. White—when

one
ordered

country of free speech."

Why,

unravel

because

just

they

enterprise

will

Also, "The Solid Gold

contrary

anything.

cial report and read a proxy

proxies

may

first

just

per-

she

are

her

attend

learned

want,"

price

heavy

I can say what
protested. "This is

AT&T

guess

and

angry

Wo-

vears

Tu
put the

sav¬

with next year's

compare

took

learn

can

hey

Once

in terms of what to wear,

has

she
even

feel

woman

injustice

hear.

made

ees

men

tively prosperous. Oh, that's my
St. Valentine Day's talk!
At any
rate, if

get
of

sense

been

who

tees

fight, I couldn't help but cry out
in protest—not as a shareowner
but as
an
American.
It was a

t^ce^efiVrby'romeone'wanting

Mumbo Jumbo

holders in the turmoil

cruise! Financially t[}ing fro™ me' Anyone who can ever, to the duPonts I must say
the men and P'ay scfa.bble and concentrate on that the coverage of the General
the
intricacies
of
the
mambo Motors meeting is much more ac-

—

You

versus

secret ballot but no pro¬

has

vision

by-passed

isn't

sure

and Banks stockholders — the
management
in general resist being listed on
voted against rotating the annual
th£ N. Y. Stock Exchange or com¬
meeting so more stockholders can
ing under the SEC so that they
attend—because I asked too many
will have to give disclosure!
questions, one of the local gentry,
If Macy's finds — and Gimbel's an elderly woman, raised her arm

Mambo

,we

Politically you have learned to
cherish

defeated, deliberately
parliamentary proce¬
dure,
when
microphones
were
withheld from protesting stock-

President he

copies—humor in advertising can to hit me with her cane—actually
sell more merchandise, I cannot Miss
O'Crowley,
our * general
see
why the light touch cannot counsel, identified it as a shil¬
with
bank
mergers.
Although dispel the gloom of some of the lelagh.
there is a tendency to extend the heavier
subjects on our curricu¬
Another of the local ladies was
annual meeting season to an all lum—up to the
point, of course, muttering so when Lewis Gilbert,
year
round affair — Macy's and where
are
inOther
emotions
champion of small stockholders,
Best Foods' meetings come in the volved.
was
speaking that she was told
fall—General Foods' in July—still
bonnet—you

Until

management.

lighten

the proxies and can see how
in Albany. When I saw the at- owners vote.
Just think what
tempt being made to railroad the this means in a proxy fight. Representatives of banks sit on inter¬
voting by the former management,
* 1
1
Banks are trus¬
when Mr. William White, Presi¬ locking boards.

season"—January and February—
for bank meetings—this year big

the time

porate suffrage and modernizing
but to enthe proxy mechanism

"little

this

There

"season."

season

know, we are on the

you

baseball

the

open

brink

which

the last bank

merger,

their ^cor¬

use

Central Annual Meeting last year

y:'

it is perfectly

States—depending
is-—some

United

the

went off the Big Board

asked to throw out the first base¬
to

bring banks

not

constructive

criticize and hiss at
on TV, the President

Chemical-Corn

the

France

protect
stockholder
meetings.
Managestockholders byVgiving Them a
ment has found the so-called
secret
ballot.
This needs' tobe
stooge or plant is apt to be fatal
With women to set the example brought to the attention of the
in asking questions, fewer men Fulbright Committee, and I.hope
are
afraid ot :making fools of that T shall be called before the
themselves./:■■///;■Senate so I can do so.
There were some 2,000 persons,
Ballot ' implies • secrecy. But
f°r example at the New - York management still has access to

Communistic—well, at any rate,
windows jn Hmes ,jke thjsJt0
* word'

has

SEC

With

passed.

plagiarism!"

ball

the

under

another

goes

right

banks with the

new

that the Frear Bill to

heard

her!

all

newsreels

good

super-ranch house type
-all glass—when you stop to think

Soss?

Never

r?. V./•*"

While they think

I don't think you

n„L/r„nni,

quipped:
"Wilma

those

one

true, they

was

been

not

• *

Hisses and Kisses

should be deceived when you pass

were

has

when they grew up.

?■'.'• •;;.-''

;

for financial insti¬

reverence

because

—

•

for embezzling
Ever since,

sensi-

very

are

like you to teach

one

was no

them

the bank.

working order.

when the

you

sent

been

think

can

American

™n

g°

dividends

about

UvB

most

funds from

happened

our^ economy suffers
corrected
within
our
tradition through the

may

On the other hand we have

actually

there

incidentally gave my family
profitable advice on in¬

"Fortune"

that I was the

what

realize

collaborationists

with

meetings in the rain

dividends—they

branch bank

if any-enemy ever got control
one
of our communities.
We

begin

do not know much
about their rights and privileges
as
stockholders except to collectbut

to me when

it did

what

imagine

play.*

bank.

opening of

themselves on being good citizens

nsv-

to Laura Partridge and chology as
chology
Josephine Hull as the heroine of and label this approach frivolous.
"The Solid Gold Cadillac" than Actually
I was brought up to
at any time
speak in hushed whispers when

kinship

one

could happen to some of our own have completed our democracy
feel
sorry
for the poor dear neighbors who are perfectly capa- within the structure of a Republic:
badgered man and you will be ble of cutting their most intimate —economically as well as politic
torn limb ;from limb in what is friends dead at stockholders meet- cally—we should be very careful!
supposed to be the democratic ings if the cause espoused by them not to let those who find flaws inprocess.
does not appear to be popular, what has been called the "noble;
You see, stockholders who at- Next season they are likely to be experiment" so that we throw it*
tend annual meetings are usually on the band wagon if the climate away before it has really begun
to function as a whole.
nice neighborly people who pride changes. :
!

with

makes

afraid

asking questions—men being less
making fools of themselves.

the example in

to set

years some¬

does.

will begin to

stockholders present

the stooge is fatal, and with women

management realizing

needs

plane sent down to bring
back from
Florida, or the

him

of the Solid Gold Chevrolet (rather

era

Cadillac), with better attended and run meetings,

pen

company

and

than

all the
get on a

should- be

incentive

Stockholder champion urges

couple of

times

shudder to think what might hap¬

salary

his

and

you!"—in

going

year

consultant

with the stocks phrase "Oh,-young people -f that many of the
wish I had the courage to support growing pains from which they*

—x.-—

_x__,_

Board

By WILMA SOSS*

suffrage and to show

late stockholder after the meeting corporate

Don't
questions
why the Chairman of the
*—
wants
stock options for
pointed

many

•

it.

overdo

not

too

ings

mature*

the
men;

timid

who

has

been

Women

called

souls,e usually among our education, activities is" laughter/ when I want an mtel*up: and not only to arouse stockholders ligent answer to my questions,
an articu- fromvitheir?sapathy
to use their not a brush off, or a kiss offi I

come

congratulate or console

Volume 181 ? Number 5422

(1849)v

.Commercial and Financial Chronicle

shall,

never

what

/^forget

Mr.,

To Investigate

Holden, jGhairman
of
SoconyVacuum, said to stockholders when

they laughed at
their

"The

it."

asks

If you are a

teacher of business y

education but
ford

feel you cannot af¬

purchase
should

—

than ten;
shares of a

priced

moderately
stock

■.../•!;■(:-<y±

rather

House

citizen—work, when
accessible an¬

corporate

will

meetings—you

stand

why

ington

if you trek

and

for

work

pay

resolution

with

House,

the

proval

ap¬

fare;

the

post-

tee,

of the

Chairman

Spence,

management and labor

Open
C

are

Federation

-the

iof

well

reading

;

"pany

libraries

Federation

holders for

dollar.

Mr.

Federation

when

the

Gilbert

placed through
wi]l

You

orders

are

us.

learn

the

about

facts of life than reading

tennis

and their points,

;

management

using
to

votes

support your

You will
'

see

and meet

game

time

—

the

are:

Birkenmayer & Co., U. S.

p.m.

such borrow¬

Arthur Vare

Webber, Jack¬

the

The

exercises its credit

market, the resolution would
a
broad inquiry into

i
LONDON

m
m

and

Israel

will

Diamond

est

Ho¬

•

Brauman to Be Partner

management

The Solid Gold

securities

also be
the

are

would

issued,

subject of inquiry under

"Several

ance

and

upon

programs

been

have

which

recently
Federal

visioned

grown

financial

will

Brauman

be¬

Broad Street, New York:
City, members of the New York
Stock
Exchange on May 1. Mr.
Brauman is a partner
in Kalb,
Voorhis & Co.
" ■ .V'
Co.,

en-

placing primary reliance

financing, yet

bank

would

be outside the Federal debt limit.

meeting
ton.

places.

meeting
who

the

was

especially

Wilming¬

Eastern

lowing

Airlines

see

bank

where

holders

the

fewest

attend.

the

1929

assets

(Special to The

crash

were

which

stock¬

through

horribly

vestments
ment

speculation

dis¬

promoted

in¬

invest-

companies with which they

Eubanks

With Stewart,

•

212,000 kilowatts of new

•

3,003 kilowatt-hours of

Calif.—

FRANCISCO,

Arthur

has

Doerfler

staff

the

added

been
Stewart,

Eubanks, Meyerson & York, 216
Montgomery Street, members of
the 'iSan Francisco Stock Ex-

change.
:

Joins Hooker & Fay

qam

gomery

Rafter

Street,

York

ha? joiner)
San

the

Francisco

Mr" Rafted was

Exchanees

electricity, average annual use

work that should be conducive to

economic growth in the areas

healthy and durable

the two Companies.

frontage, Ohio Edison's

With 120 miles of water

service area is expected to benefit

substantially from construction of the St.
Careful and intelligent planning

business groups, to

seaway

of the potentialities that the

project will make possible, is

Another important
is the Ohio

Lawrence Sea¬

by community and

best develop facilities along Lake Erie's

shoreline to take advantage

under way.

addition to transportation facilities

Turnpike, scheduled to be open

throughout its

This new east-west high¬

length in the fall of 1955.

way traverses

the

221 Mont-

members

and

generating capacity

131 miles of Ohio Edison's

service area.

noiir

rRAwncrn

staff of Hooker & Fay,

/served by

entire

(.special to the financial chronicle/

New

and improvements

residential customer

per

way.

(Special to The Financial Chronicle)

SAN

served

$54,497,641 for property additions

Various factors are at

Financial Chronicle)

LOS

The

above information

report to its
L. I.

is from the

stockholders. For a copy

Wells, Secretary, 47

Company's annual

of the report write
Ohio.

North Main Street, Akron 8,

btock Exchanges. Mr. Kafter was
formerly with Davis, Skaggs &
Co. and William

R. Staats Co.

Ohio

With Protected Investors

(Speein to The Financial Chronicle)

SAN

sipated

Bible insists upon' holding meet¬
ings

propose

tions denied banks since 1933 fol¬

why the man
rescued with and by the

and

school

and

ways

of the Solid

578,218 electric customers

electricity sold

•

Paine, Webber Adds

« A

Chevrolet

era

5,742,416,277 kilowatt-hours of

assist-

construction
radical de¬
Gold Cadillacs but the Solid Gold parture from normal methods of
Chevrolets.
Make the most of it. government: financing.
Counter
Get off your chairs
in
these fields
have
and go to proposals
been
proposed by banks which
Flemington and see why stock¬
holders
want
more
accessible would reopen financing participa¬
This is not the

•

partner in Oppenheimer &

come a

inter¬
specula¬

resolution.

proposed

have refused.

power

The degree of

costs.

term

en-

$109,513,428 of operating revenue

•

Oppenheimer A Co.

Leonard

of outstanding long-term

tion, which may be permitted by
the manner in which such long-

the
Robert Youngs and the Pat Maginnis' had to come to the fore.
Superseding the robber barons
of yesterday, the modern empire
builder is the "people's friend'.' in
order to gain popular stockholder
support—baldly, your votes. They

flabby with

and its subsidiary,

consolidated, reported:

Pennsylvania Power Company,

April 30.

debt at substantially lower

States, with

ratio Alger, the Wolfsons and

trenched

1954, Ohio Edison Company

For

be¬

iriatir

amount

Inevi¬

which

(m;

May 1 will be¬

PA.

OHIO

partner in Hourwich & Co.
;
On the same date Miriam Marks

special importance in

reforms

I.:

THE OHIO EDISON. SYSTEM

;

ANGELES, Calif.—Thomas
barons—and their vitality. As in-'
this respect
is the question of H. Curtin, Jr. and John E. Fishdustry expanded, they were su¬
whether
the
public interest is burn III are now with Paine, Web¬
perseded by the palace guard and
served by sporadic issue of long- ber, Jackson & Curtis, 626 South
the $100,000 and $200,000 clerk,
term issues carrying high interest Spring
Street.
Mr. Curtin was
many of whom have to play poli¬
rates which must necessarily go to formerly with First California Co.
tics to hold their jobs—the "team"
nr-otvihim
in
n-f
1 orrfn
i i:
«
*1
a
premium in view of the large
as
they are called in "Executive

institute

>
'

Co., 25 Broad Street, New York

of speculation

amount and degree
therein.

#SAltM

opera¬

government' security issues, in¬
cluding the various kinds of se¬
curities, the manner and purpose
of
issue,
method
of payment,
character
of
investor,
and
the

At the turn of the century,

nurtured

AitiANCt

City, members of the New York
Stock Exchange.
Mr. Vare is a

national

principally by its pur¬
and sales of government

chases

had the imprint of the robber

alive

•

partner in Kalb, Voorhis

ARREU.

• YCUNCSTOWN

THE AREA SERVED BY

come

SHARON

» f

Osborn,

In Kalb, Voorhis

authorize

the United

►

Arthur Vare Partner

influence

administration may well take

-i

Federal Open Mar¬

ket Committee

conclusion, the proxy fights
sign of the times
which you as students of busi¬

sHll

g> <,»

Inc.

subject of inquiry by

the

"Since

today are a

men

„

Curtis; Wilfred J. Friday,
Siler and Company; John J. Mar¬

committee of the
Congress since it was established
by Congress in 1933.

tably

Nelson.

legislative

Friend

"Patterns."

O'Rourke, Inc.

Report of progress

an¬

son

securities, or by being inactive in

and

with

previously

National was

'j'.

.is

come limited partners. Leonard P.
the Federal Brauman, Celia L. Kalb and A.
Committee have Beck will retire from the firm

Market

not been the

add

Proxy Fights and the People's

Suite"

staff

prizes,

at 7:00

Milo

Paine,

Chairman,

the
the rate of in¬

businesses.

and

Open

ment level.

the

Palmer

has

been

added to

the staff of Protected Investors

America, Russ Building

Edison
»

General Offices • Akron

FRANCISCO, Calif.—
Bevis

•

Tober Elizabeth S. Clayton is now with
of A. M. Kidder & Co. Mrs. Clayton

Gene

tions and activities of

at shareowners as well as manage¬

heed.

Banks,

Reserve

tries

part of what goes on and we can't
afford not to have your thinking

ness

Open Market Com¬
Federal Reserve

and
employment in American indus¬

practicality to what you teach,
just can't afford not to be

—

added

Entertainment

the

Committee

debt, the general price level

You

/Members

the

cost and character of the

of the

will

(Special to The Financial Chronicle)

(guests invited).

ings; the market price of govern¬
ment bonds; the investment pol¬
icies of banks, insurance compan¬
ies and other large investors; the

and your
principles.

You

DAYTONA BEACH, Fla.—Mrs.

CflCID

organized share-

movement.

authorize

operation and activities

general consumer;
terest charged for

part of one of the youngest and
the most powerful movements of
holder

its

golf

will be

Dinner

agriculture, home-buyers and

shareown-

some

will

awarding

ming,
etc.-

availability of credit for business,

giants of industry and the pygmies
who pose as giants.
You will be

our
-

money

your

•

Spaulding, H. V. Sattley and Co.,

You will have the satisfaction

ers.

Patman

Mr.

policy of the United
States, and, in this capacity, exer¬
cises a direct influence upon the

for progressive

well

will hold

day, June 7,1955 at the Plum Hol¬
low Golf Club, Detroit, Michigan.
Activities will include golf, swim-

the monetary

their opportuni¬

ties and challenges

been

Bank Building,

The Bond

—

determines

eral

that
-annual meetings have their rules
playing

tin, First of Michigan Corporation;
Julius Pochelon, Kenower, MacArthur & Company; Richard C.

hooks—you will find like watch¬
ing

the
gave to

presenting

the following statement:

Colo.

DENVER,

Outing

This twelve-man Com¬
mittee, consisting of the seven
Governors of the Federal Reserve
Board and five Presidents of Fed¬

dozen

Wright Patman ,:

•

System.

donates part of it to the work of
the

With A. M. Kidder & Co.

Adds

of the Federal

Share¬

Women

Street.

nual Summer golf outing on Tues¬

re-

ies of the

many com-

through

Club of Detroit

studies, investigations and inquir¬

mittee

their

assess

Mich.

DETROIT,

resolution

"The

Stockholders Activities at Annual

Meetings, available in

Sixteenth

430

/■

Of Bond Club of Detroit

matters.

the press

should
make
required"
the Gilbert Report on

you

other

resolution,

all

women—and

Sherman

Four-

(Special to The Financial Chronicle)

and their purposes."

Annual Summer

i t tee

o m m

and

of Women Share¬

holders—we receive proxies from
-men

1921

pro¬

has

Market

lated

option abuses. Some of you may
:want to pool your proxies through

properly

significance

of the Federal

will understand why when

various

these

made

Hon¬

orable,, Brent

retired or if your wife
widow; work against stock

-you

for these purposes.

posals

Commit¬

the

investigation

Donahue,

•

FIF Adds To Staff

Other vestment Company,
authorize banks teenth Street. - - - <•
to purchase stock in investment >
companies. A real study should
Birkenmayer

incentive

well

Street.

Kentucky, for
a
-study
and

—you

John

Co.-, Inc., 47-3

the

Representatives for the

why»; when < you read the
reports of meetings you have ac¬
tually
attended;
for
three-way
^as

San Jose Investment

were:

Currency

the

to Flem-

stockholder

Colo. —Harold H.
;Rumbaugh is now connected with.

proposals would

stand

—

to The Financial Chronicle/

pressure

money

meeting reports—you will under¬

incentive

» (Special

Joins Allen Inv. Co. V
affiliated.
Considerable " i
(Special to The'Financial Chronicle) - •
is being brought, to bear ,...
(Special to The Financial Chronicle) ; DENVER, Colo.—Galen E.Rio we,
to permit banks to engage in untdottt dfp
r^in
James L.
Jr. has been added to the staff of
derwriting and dealing in revenue
CUULU£,K' ^°10,
FIF Management Corporation 44-4
obligations and to use depositors' Stayton, Jr. is now with Allen In-

Patman,
April 18,

and

under¬

your own
informative

Banking

■necessary, for more

nual

Wright

Texas,

Committee

one

introduced

in 10 different
companies and do case studies as
buy

Park Avenue.

Congressman

DENVER,

affiliated with

become

Davis has

JOSE, Calif.—Maurice

undertake a study and investigation of the
operations of the Federal Open Market Committee, established

Democrat

You

see

SAN

Banking

Joins John L. Donahue

"" -

(Special to The Financial Chronicle)

under the Federal Reserve Act. Gives explanatory statement.

it is important to the stockholder

who

v"'*'

and Currency to

question

not be important to you but,

may

With San Jose Inv. Co.

Federal Open Market Group

Resolution introduced for the House Committee

question by one

number.

of
(5) 1956. O. K. Co.

Co.

8, Ohio

(1850)

The Commercial and Financial Chronicle

Arthur M. Krensky Go.
Forms New Department
CHICAGO, 111.—A
ment

to handle

Our

Reporter

Thursday, April 21, 1955

Bank and Insurance Stocks

Governments

depart¬

new

By JOHN T. CHIPPENDALE, JR.

dealers' sales has

been formed at Arthur M.

Kren¬

sky & Co., 141 West Jackson Bou-

By ARTHUR B. WALLACE-

The

government market continues to be on the thin side.
Investors and dealers are still keeping pretty much to the sidelines
and they are quite likely to stay where they are until there is

This Week

;

—

Insurance Stocks

evidence

what is going to develop.

discount rate added

The upping of the

been prevalent
markets. The uptrend in interest

making the short-term

Treasury

obligations

the

issues

still

are

securities is about

of long government

defensive price

time

buying

seem to

doing

have given

in that

was

Sachnoff

Frederick V. Devoll

being at least.

fire-fighting facilities
that

plate

evidencing

bore

coverage; ;But
surance

are

levard, members of the New York
and Midwest Stock

Exchanges, it

is announced by Arthur M. Kren¬

sky, President.
Frederick

officials

have

indicated

rather than economic

Devoll, Jr., VicePresident, will head the new de¬
partment. Formerly, he was man¬
ager of the trading department.
Morey D. Sachnoff has been

powers-that-be

named to fill the

which have

position of

man¬

in
a

reality and the money markets are waiting to see what will hap¬
pen with the slight additional restraint which has been placed on
the lending abilities of the commercial banks.
Federal Reserve
that

the

rate

increase

reasons. '

though it

there

to
no

•

denying the fact that
the

over

trend

potent effect

the

upsurge
concern

certain

dend

course of husiness.

trading department.

The
some

quite

PETERSBURG, Fla. —Wil¬

liam H. Greene is
with

Kidder

connected

now

Co.,

400

Beach Drive, North.

associated

now

135

records

among

would

brief

Thus

the

famous

Chicago

sizable
sizable

a
a

South

with

Monetary Policy Change Underscored

Bache

Salle

Street.

was
previously with
Lynch, Pierce, Fenner &

Beane.

With Link, Gorman, Peck
(Special to The Financial Chronicle)

CHICAGO,

111.

Wellington has
with

—

Wilbert

fire

number

carriers.

For

Fireman's JTuirf Insurr
ance Company derived its. name*
from the fact that at its prganlza?lion a fund was set up consisting
of 10% of its profits as a charit-'
able
contribution
to
the
city's
volunteer fire fighters. The orig¬

the

idea correctly prer
"you'll
have
them
rushing in double time to fight
flames in the buildings you insure."

dieted

that

Then there

was

fire and marine
ance

oldest stock

our

Insur-

company,

Company of North American,

which

founded

was

room

Philadelphia that

of the

the

Independence

same

Hall

the signing

saw

Declaration of IndepenNot long after its found-

dence.

With Schirmer, Atherton

has

Henry

—

become

Congress Street,

were some months

Also,

ago.

likely to create too many hardships

activities

of the

commercial banks

are

1%%
far

for

our

vent

resumed

leading

dividends

Following

two

the dates of

are

some

the

or-

certain lending

„

Years of

—-

*
enju 5 ?
?hriadelphia inaugurated its paid.
fire
department.

an
interesting book issued by
Springfield Fire Marine Insurance

-Co. is depicted

older

stock fire companies, with the record<of dividend continuity: ■ :<*■-N
.,<•
/
'

concerned.

Aetna

that

associated

members of the

Amer.

Hi". Per.10d between 1800 and I860.
J?11? I?lgn on ? house indicated
that the property

if under certain cir¬

Federal

the role of

whole

structure

assume

interest

rates.

[See

anchor

concern

market for funds.

Joins Smith & Co.

(Special to The Financial Chronicle)

1870

1869

Prov. Wash

1799
1853

Security Ins.
Springfield

1841

1851
1824

Westchester

1837

Smith

has

joined

the

Company,

staff

193

Main

Street.

•

CANTON, Ohio

opened

Stroud Branch in Scranton
.SCRANTON; Pa.

Aubrey G. Lanston

Flynn is

now

Robert

—

■

with C. F. Childs &

Company, 35 Congress Street.

& Co.

CHICAGO, 111.—Herta
has

been

added,-to

the

88«s under dividend ,r
—„
" .Y-1
"t "
continuity,
"
reflects the

opened

branch
orancn

First National Bank Building

impact of the Chicago
84 vp.r, ago. That
years

was

Prentice

Levy

staff

Joins Zilka, Smither

ST., NEW YORK 5

45 Milk

^
St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

(Special to The Financial Chronicle)

PORTLAND, Ore.

—

LaVorn A.

MILWAUKEE

Wis.

Zilka,

Smither

Southwest

associated

now

Alder.

Co.,

Inc.,

with

813

Johnson

has

with

Taylor

Marshall

The

North

—

become

Water Street.

-ij-

the

un-

QUARTERLY ANALYSIS

now

With

Robert

14 N.Y.

Morris & Co., 100 Pearl Street

City

Bank Stocks

Gerald E. Hall Joins
Bulletin

J. Barth Co. Staff
LOS

Request

ANGELES, Calif.—Gerald

Laird. Bissell & Meeds
Members

Oscar N.

affiliated

was

Boughner.

Conn.—Harold D.

E. Hall has become associated with

Company, 765
He

have

in
in

(Special to The Financial Chronicle)

Marshall Co. Adds

(Special to The Financial Chronicle)

-a

office
omce

^er the management of Harold E.

Paine, Webber, Jackson & Curtis,
209 South La Salle Street.

Robert Morris Adds
HARTFORD,

INCORPORATED

WHitehall 3-1200

Stroud

Incorporated,

fnr
fire, for it
it

(Special to The Financial Chronicle)

—

Company,

(Special to The Financial Chronicle)

BOSTON, Mass.

branch office at 315 Tus¬
Street under the manage¬

ment of Russell V. Jones.

frequency of figures in the
.

With Paine, Webber

With C. F. Childs

carawas

fir#*

& Mail

;■

Marsh Plan¬

—

Hall, Bank of America

Building.

early organizations
indeed, to survive. To¬

ning & Investment Co., Inc., has

FRESNO, Calif.. — William C. catastrophe put 68 companies out
Callahan, Jr. has joined the staff of business entirely; and those
of Hall

con-

catastro¬

U. S. Fire

many

other

these

well,

St. Paul Fire-

the

and

Marsh Planning Branch

1854

out

marker,
enjoy the fire.
the
tribulations

put

ment media.

117

Phoenix

(Special to The Financial Chronicle)

WATERVILLE, Maine—Roy R.
Goodrich

•

Joins Tiail

1822

The

SECURITIES

down to

sat

was

day the business is one of our
basic necessities: the stocks
among
our
soundest
long-term invest¬

108

N'western Nat.

offered not

so long
ago.
Also the appetite for intermediate-term
obligations does not appear to be very sharp at this time.

1871

New Hamp

It is

1853

the

did

North River

soon.
While there is always a certain
conjecture connected with the operations of the Treas¬
ury, current opinions appear to run
pretty much to the side of
short-term issues being used for such a
purpose.

there

phes,

102"

1792

18'2

sight,

proceeded

Dageratiors

1810

National Fire

something like $2 billion of

being noted that the long-term market has not yet been
fully digest the $1.9 billion of the long term 3s which were

1850

volunteers

brought

Ins. Co. N. Am.

money will be needed

able to

1863

a house caught fire
department saw one

markers

Considering

fire

>102

•

1872

the

these

thev

81-

>■.

the fire;

138

Home

amount of

and

___

Amer.

Hartford

present time

rates, there

It is indicated that

Fd._

Hanover

the

*80

1817

Glens Falls

Coming Treasury Borrowing

partments.
and

i 1991

Fireman's

"Chronicle" T>f

April 21, page 3, for text of Mr. Sproul's talk.]

though the main point of

1841

Fire Asso.

the

1863

rContin'tal Ins._/ 1853

are other things which
by the money markets and, among
them, are the money raising operations of the Treasury. It will not
be too long before the
government will have to be coming into the

PUBLIC REVENUE

Camden Fire

the

cumstances the discount rate should

for

new

was insured by
which entered into the

-Subsidization of volunteer fire de-

1819

Insure 1874

monetary policy of the country, especially

Stock Ex¬

STATE, MUNICIPAL

•

Insure- 1846

Boston

Great

U. S. TREASURY

Fire

Agricultural

from the remarks which President
Sproul of the Federal Reserve
Bank of New York made
recently at Pullman,

is the future trend of interest
have to be given consideration

£31 So. La Salle St.

metal "marker,"

,1IifUZaTlce i™?pa

a company

Orans'tion

trying to accomplish cannot be done effectively with a
1%% discount rate, a higher rate might be tried in order to see
how that might work.
Likewise, it seems to be rather evident
are

Even

15 BROAD

and,vfiren.f.lght~

in.'Hum J?j*3

com-

three years later.

ganization

San

earthquake and. fire
of

man-

the

one

Yet

However, if the various things, which the monetary authori¬
ties

changes.

than
„was

calamit-

panies, at that tirfie .nearly,., insol¬

discount rate is

1906*

discount rate could play a much more
important part in the future

Schirmer, Atherton & Co., 50

New York and Boston

they

Wash.,

(Special to The Financial Chronicle)

Jr.

than

rather

- reasons

named, such as Vigilant,
'
etccompany
1
functions of m-

dividend

Francisco

that-be come along and
seemingly reaffirm the new monetary
policy which they adopted by increasing the discount rate. To be
sure, interest rates are not high now even though
they are higher

affiliated

Link, Gorman, Peck & Co.,

Hart,

event

-agement

definite

change in monetary policy in this
country in the past several months, because the authorities an¬
nounced that the program of "active ease" was
being supplantedby one of "ease only." This was not a drastic move, but it nas had ■
a tightening effect
upon the monetary system.
Now the powersa

example

become

Mass.

There has been

not

208 South La Salle Street.

BOSTON,

Another

interruption because of
-ous

Chronic

Merrill

with

many

leading firer

our

insurance

which, ,of companies to forego dividend *nS
R pioneered
coverage
of
taking place in yields of. gpvernm'ent.securities. To be,
payments for several years, for in contents of buildings as well as
sure, when the Treasury bill rate gets close to or even above the.,
those days the companies had not
buildings, a venture that had
discount rate, as has been the case
recently, there appears to be, fully learned the .wisdom of wide not been tried up to that time.
little sense in keeping the latter rate under that of the
Treasury > geographical distribution of their
In 1817 when Fire Association
bill rate. The discount rate here, in contrast with the situation in
•risks that constitutes such an im- of Philadelphia was organized, it
England and other countries, Jias not really been a penalty rate
portant safety factor in their op- comprised
11 engine companies
for a long time. On the other hand, an
upward revision in the dis¬
erations today.
;
and five hose companies, all in-

(Special to The Financial Chronicle)

Mr.

are

example,

And the divi-

even

for

1871 caused
in 1871 caused

does bring with it certain implications, which will no
doubt be given consideration by the money markets. V

Chicago

CHICAGO, 111.—Jack G. Chronic

Co.,

companies,

companies

count rate

Joins Bache In

than

common

are
-

ST.

in-

un-r

surely

encomiums.

our

have been

Joins A. M. Kidder Co.
(Special to The Financial Chronicle)

money markets have been--on the,.tight--side for
time now, and this is well borne out in the increases

continuity
an

losses

within

such

Numerous interesting stofies are
connected with the
founding and

unbroken- inator

longer list were it
lapses caused by
single catastrophlic losses.
riot

economy

ager of the

insurance

make

common,

of industrial

numerous.

in-

Not

though the latter

fire

activity,

the

much

prop-

building's

long
are

even

does ekist among the
forces

but

case

times

at¬

not

are

numerous

field,

precedented
entitled to

years

development of

only
old companies

is the

technical

business

there

three

marine

puts fire
the
o'dest

enterprises.

dividends

resumed

two

were

appropriate

the

that

what

this

among

the

deed,
-

stressed that the authorities

was

discourage the recent

the

dividend records

>>->'>.*•>

Even

tempting

for

was

•

business

provided

available, but only for those

certain amount of
this policy for the '

The long expected increase in the discount rate has become

of the

era

insurer

erties

Impact of Higher Discount Rate
D.

United

the

American

the
a

when

Institutional investors which have been

century,

the

crude

it has been in a long time and this is
not expected to be lifted with the increase in the discount rate.
great

back

corporate
form goes back to the late 1700's.

liquid obligations.
The confusion among prospective buyers

date

States the business in

put funds to work in gov¬
much interested in only the most

very

origins of insurance

fifteenth

impor¬

tant securities because those that must
ernment

the

said

are

the uncertainty which has

for quite some time in the money

rates

While

j. Barth & Co., 210 West Seventh
™

Street. Mr. Hall

for-, Weeden

merly with The Milwaukee Co.

New

York

Stork

Exchange

Members

American

Stock

Exchange

120

Telephone:

-+u

was formerly with

Co. in

the

BROADWAY.

municipal

Bell

(L.

YORK

BArclay

Teletype—NY
in

7-3500

1-1248-49

Gibbs, Manager Trading

Specialists

department.1

NEW

Banh

Dept.'

Stock*

Volume

181

Number 5422

Continued

from

The Commercial and Financial Chronicle

the

page

(1851)

nation's

eral

valuable

most

resources

min-

would not

depleted,

were

Copper was formerly produced at

are

low cost in the United States. To-

the

Prospective Inflation
-rfl

Inflation

penciture of

war,

wasteful

nation

ex-

resources,

government's income is

longer

during

most

the

When

expenditure

government.funds
which

usually has been created

profligate

prodigal

sufficient

the

meet

expenditures

war

period, it usually levies confiscaand

tory
most

ruinous

taxes

productive

these taxes

enough

can

citizens.

When

longer produce

revenue

nation's

its

upon

the

for

pay

extravagance,

the

gov-

Policy

remaining

. i

press money

through

directly

indirect
vor

which

method

the U.

and later

for

studying

monetary statistics.

From studies

such

conditions

the

po-

also

1914-1939

States. Between 1914-39 in France
the

protective

pros

reexpenditures

United
only

def

being.

This

and,

ense

only

continue

temporary

opinion,

destined

prices

are

long-term

The nation is committed to policies which will produce high national income. It is also committed
to a program of security and defense. If it were not for the continuing defense expenditures in
the United States, I believe that
the inflation in the United States
could
be
stopped
dead
in its
tracks if this were really desired
by the people. However, even in

creases

indication

the

wage

to eventuate in the future

Salaries of Army and

Navy offi-

raised.

There
government costs that
all agree are probably justi-

cers

may

are

also

many

fied, but doesn't it

seem

reason-

able to believe that there is some

point

where

have

take

firm stand and refuse to authorize

further

this case, it might prove difficult, if

The

expenditures?

swer,

new

opinion, is

no.

an-

Even

conditions in the United States and economists, we get what we
during the 1939-1955 period. There want, and in this case the people
are *our social factors that exert want what we have.
inflnonno
inflafinn
IVof
influence on inflation, that wereThe people like inflation and
also *rue
the French economy: go does the average businessman

he could change the sentiment of
the people in any way.

supply

money

suddenly

•

•
_

and
in-

any

in the supply of goods and
■

services

that

the

buy with that

•

people

wisn

As the cost

money.

of living advances, the people de-

(1)

mand

strength of labor,

and

for

what-

The

tremendous

political
(2) The politi-

they have

to sell—be it their cal value of establishing farm intheir products and serv- come at the highest possible level,
ices.
And so begins the endless (3) The cost of maintaining the
wage-price spiral which is the in- "welfare state, (4) The cost of subevitable consequence of inflation, sidizing
industries or
granting
ever

labor,

.'-x"

ix.

•_

rrn

iirnvn

Moreover, the government is also special privileges to industries.
caught in this spiral once it has
The income tax system of the
started. The expenses of the gov- Federal Government is the greaternment
rise
and
it
resorts
to est single factor contributing to-

i*i

the

it is unlikely that

scene,

and

raises

possible.

taxes

more money,

still

further,

The critical stage is soon

ruinous inflation.

This

flation

shown by his-

pattern

tory.

•

the

in-

Inflation in the U. S.

Now

point

certain

out

truths'about

our

tential ill the
iciuidj
in uic

Unite~d"states~is
unitea states is

inflationay

ponot
not

I'lation

considered

optimism.

Unchecked

viewed bv all

this

going into
detail

let

terested

subiect

^ides with

flation

students"

take

Demo-

for

in-

iustifipd

was

the

in-

not
to

blamp

whether it

uniustified

trvine

Republicans

the

greater

attempting

iudging

crats

and

Before

that I

sav

for

inflation is

disaster

be'objective

basis

times

prices down and stop inflation,
This viewpoint is probably sound,
if only the immediate effect of a
sharp increase in supply (production to take care of increased
money in circulation, i.e. purchasone cared about "income" as we
have
anything
resembling
the ing power) is considered. Howdefine it.
In England and the "Welfare State" in the United ever, it is a view which has nothUnited States the idea of taxing States, but we should view our ing to do with the broad, longprofits (i.e. income) has become own economic position objectively, term problem of inflation. Those
important with the years. It

m°re

_ _

.x.

„

New Position

„r

1Jg

World

Affairs

New Position in World Affairs

easy t0 S€e the tremendous
stake of the government in see,_.®

The United States is in a new
*n§ that Profits are adequate. Un- position in world affairs and has
less General Motors, for example, accepted certain responsibilities
makes $2.5 billion before taxes, that go with the new status. Our
the government loses $1.2 billion leaders are involved in internain income tax levies.
tional economic
and
political
The individual income tax and problems and are pledged to conthe corporate income tax account tinue aid for needy foreign counfor about three quarters ot the tries. No real peace with Russia
Federal receipts. These sources has been achieved. Any deflation
of income are the first to be af- in the United States of any sefected, should a recession or a de- verity would bring down tie curPressi°n eventuate. Obviously, the rencies of the entire free world
income tax collector cannot obtain and accomplish, at one stroke, all
.

_•

revenue from corporate operating of Russia's objectives. Here again
deficits For over ten years, we we have another strong factor that

have stressed the importance of is contributing to the inflationary

economy,

all

what

this

factor

our

various

for

the

States, the basis
inflation was laid in the

1Q3fk
1 Jo us

the

United

dpfipit

tbp

finanr»inc
nnancmx,

cieticit

tne

period

The

of World
War II was the trigger wmch set
the
pent-up inflationary
forces
into

play

and

industrial

the

inflationary

postwar

now

third

Then

snpnding

"ri
and

period

are

production.

deficit

the

inevitable
where

period

H?e+ni? <?nS Naders be maintained
have decided
that business must
fnd depression- avoided even if
further inflation
certain. As
is

all

cases

leaders

will

dangerous
that

lant

7,,

tratlon

thing

quickly
it

little

histo^,^ the-nation s
say

only

that

liidnent boom

inflation

uncontrolled,

inflation

business

and

stimu-

that

l,nH'

per-

desirable.

every-

check

been

for

stand

„ot

trends,

nppmninvmpnt

that

even

fionrn

otld

the politicians believe in the idea
of

"perpetual boom."

Demands

the

part

labor

for increased wages will probably

and demands for guaranteed

annual
Full

mits

unemployment

business

himself

find

not

may

main-

Any President who

tained.

Socialized

ture

present
fuCongress
will

Republican

find

difficult

cut

any

expenses,

Instead, it is almost certain that
budget expenses will advance. Income

creased

tion

taxes

may

in order

and

hold

the

again

control

deficit

in-

infla-

rea-

continue upward for a
or more. This is what
is being indicated by the recent
advance
in
the
stock
market,

out

have

yet

state

characterized

verv

simnlv

follows- War must

beavoidedat aUMSts

Yetwe

mUst continue to spend $25

billion

vLr for neXps
billion a year^to ^P^haps

$30 bilhon

y«ars,

unui

ruiiei

^ussid

or decides
to start World War III itself as a
iast resort. I am not qualified to
say

whether this policy of the Adis right or wrong.

ministration

reached

have the Weias

to the government to main-

business,

employment

and

permanent prosperity at all times,
I dcubt if any protests from Old
Guard

Republicans

much avail.

■

the

thoroughly

tain

year after year, tor a possible future war, the costs will be

United States.

read the future, the people
convinced that it

we continue to
this amount of money on

spend

office

will

During the recent war,

some

ever-increasing

Deflationary Viewpoints
You
with

are

the

all

views

probably
of

familiar

several

econ-

fearful
about
deflation
than
inflation,
Where only a short range forecast
is involved, such viewpoints may
have validity.
It must also be
admitted that if any administration
should
destroy
confidence
and frighten the people, a huge
government deficit or the mere
existence of a huge money supply
omists

who

seem

(1) Merely because we love our

its future

country and believe in
-

i0nnr„

rpniitiPc

is n° reason to ignore leauues.

oi _our nauonai policies

Ma*iy
nave
iney .s

;,™ctm£>n+

erdd 111 formulating an investment
policy*

equities.

capital

The best defense of

(3)

fn these times is a firm and courageous determination to own
sound common stocks regardless
0f the problems of an uncertain
WOrld

tioni. 1! certainly subscribe to the

prevalent views of leading mdustrialists and economists that the
nation is destined to experience a
new industrial revolution and a
new age of scientific development

and Progress Il'sn°
that the huge increase n popula•
®
, ,
pacity

and

perity

will

greater

all

tend

world
to

prosmaintain
at

prohibitive and inflation is going
t0 prove a very serious problem

per-

it exists in England or France, but
are

the increased output. Trying to
outproduce inflation is like a man
trying to outrun his own shadow,
There are bright spots in the
picture which deserve considera-

Tnterpret"ir from"^eadTng' 'the Pr°d«ction and employment
Lii,, news, may n. expressed American plants. The trends
daily
be
11
f
inr.rt

soon

will

may

v,„+

production will itself put enough
new money into circulation to buy

poor

and

continue

the

foreign policy,

must aiso be met. defense

wage

employment must be

istration.

Congress and

national

have to be met in early future I do know that if
years

fare state in the United States

However,

Our

^odes^ unemployment figure, and destroyed from within

Balancing the budget is an objective of the Eisenhower AdminDemocratic

despite interruptions, such
experienced in 1949 and

were

1953,

(2) Cash or bond holdings■,in
who expect increased production excess of reasonable first-line reto absorb excess purchasing power serve
to absorb excess purchasing power serve requirements may prove
of the public forget that —term than
greater more speculative over the long-

•

will do

power

deflationary

any

wiu

year

it/

has

surge.

The Adminis-

has~not~changed~the

fundamentals

potential.

The election of

reports.

Congress

ba i

by raising employment

the

rai-ne

SIS
war

start

new

eco-

1—

—

nomic
In

position

has

the

interested

?*£h degree of selectivity in makmg common stock purchases is re9u*re,. at a11 times\
primary
^
States

come.

tries and business spend reckless-

happened, and in what will hap-

should be

mgs are also affected by the proble.ms created by inflation, and a

and politician. The forces of the
welfare state contribute to the
overall inflationary potential. The
United States ^ sold on the systern of special privilege. In addi-.
tion
to
special
treatment for accruing from the great growth of nQ ^me tQ throw caution to the
tampers, labor unions, etc., we the nation. Some economists state w;nds and ;+ was never more im4-V*o4innvnoPA*!
YWAcInnliAn
nrill
WUlUOj C* U
\
have hundreds of individual agen- that increased production will perative lor prospective buyers of
cies getting benefits (some prob- easily balance increased purchas- securities to "investigate before
ably deserved) that are .a first ing power on the part of the investing."
In closing, I might
charge on the nation's budget in- masses and thus tend to hold summarize my views very briefly:

ward continuous inflation. Indus-

pleasant assignment Good business, stimulated by moderate ina

Corporate Problems
Inflation at times creates great
problems to corporations requir!ng large working capital. Earn-

Several
economists
have sug- "V*^
Z fil nVrt A?
..ton
interest in equities on the part of
gested that, owing to the great pension funds and other fiduci¬
national wealth of the country, aries.
the national income can not only
It is perhaps obvious that there
be maintained, but increased in may be numerous periods of cor¬
future years and that any declin- rection in the security markets
ing in defense expenditures would dest)d;e the existence of a longbe offset by new national income term inflationary trend. This is

Each man views his own
as just
and the other
ly to avoid taxation. Many sales man's position as privilege. It is
reached, and
government
must expense accounts are very liberal, very easy for us to criticize the
then
attempt to control credit, In ancient days, the kings levied French system of special priviprices, etc., in order to avoid taxes on wealth or sales, as no leges and ignore the fact that we
inflation, prints

rn«inrai«

Senator Taft appeared generation

somewhat comparable to existing Despite warnings of the bankers

crease

been

and 558%, respectively,

in-

tential inflation is unleashed. The

greatly increased without

have

there

years

tions advanced by over 1,000%
and the national debt of France
and the United States by 697%;

Demand for higher pay

advance.

one

are

States

three

when our rewould, of course, be catastrophic, ceipts have exceded expenditures,
The government's figures on the 1947, 1948 and 1949. During the
cost of living suggest that infla- two periods under consideration,
tion has been stopped for the time the budget receipts in both na-

ducing

tariff,

budget was balanced only in
1926, 1927, 1928 and 1929. In the

small. The

very

metals for stockpile.

England

period

without

for Post Office employees is only

and to a lesser extent in France,
Social conditions of France dur-

*ng

stand

can

for defense purposes and purchase

reported by
interest
in

discuss the

the

have the cost of stockpiling
non-ferrous metals which comprises a part of the nation's budget expense.
We also subsidize
production of strategic minerals

same

found

cons

the subject, it had seemed to
That the French inflation from
1914-1939, when in terms of the
G. S. dollar the franc declined
from 20c to 2^c, was of great
timeliness and similar to the conditions prevailing in the United
States during 1939-1955 and the
approaching 1955-1965 period.

not intend

and

on
me

taxes
This

nation

complete chaos is

great political influence, and thus

purpose

fa-

found

this

However, the mining states exert

French

the

regardless ^of

possible

tion of 1939-1955, and as previously pointed out, these years folloyving the First World War as a, period compare in some ways with
the years 1939-55 in the United

and strategic natural resources. I economic effects of quickly

tut National de la Statistique

come
before
corporations.

our

quite

fundamental long-term inflationary forces we have been considering. The amount of deflation

The

reserves.-

the

during the 1930s
during World War II.

Under

copper

limits. Recently, I spent
several days in-Paris at LInsti-

both, of two
Our system of income taxes
things: (1) It debases the coinage gives the Federal Government a
through outright devaluation and main interest in sustaining net in(2) It issues printing

required

are

is true of many other metals

same

ernment does one, or

—either

prices

permit production of most of

sonable

high

day,

And Investment

bring about any inflaperiods of deflation

tion. ..Short

.r.„i

„

talking about are of a longterm nature and we do not Predict

or ant-te'Pj>te any rapid debasement o£ the curfency- However,

John E. Fricke So Be
Bache & Go. Partners
PHILADELPHIA, Pa.—John E.

Fricke

forces
crease

now

rather

early future
If

operation will
than

inin

diminish

years.

will

and

the

memhers

executive
caceuuvc

is
is
Th

headquarters

his

make

office, 121
Fricke
vice-president
of
vitc-j

Philadelphia
Broad

South

Street.

Mr.

Raker & Co

With

Adams-Fastnow

(Special to the financial chronicle)

L0S

ard

ated
pany,

right in assuming that

of the New York Stock Exchange,

these

things by themselves do not
th,n„
alter
the fact
that
inflationary

May 1 will become a

partner ^ Ba(.he & Co

ANGELES,
Lewis

w|th

215

members

has

Calif.—Richbecome

Adams-Fastnow

West
of

Seventh

the

Los

affiliCorn-

Street,
Angeles

*s ,a
Y'
Stock Exchange,
committed to the policy of main^a}^ing aJhigJu:natl0nal income, it
Hpan W Titus
follows that there will be no reL'ean W. IltUS
turn to the old classical ideas of
Dean W. Titus, associated with
economics and it will never again Smith, Hague, Noble & Co., m
expedient to allow natural Ann Arbor, Mich., passed away
.

forces to operate. When inflation suddenly April 3. Mr. Titus, who
happens slowly but continuously, had been in the investment busias *n France, it gradually changes ness f0r many years, was a memhabits and morals of the peo- ber of the Security Traders AssoP*e- An undisciplined public con- ciation of Detroit and Michigan,
tinues to clamor for more aid and
assistance. Business is eventually
Quincy Cass Adds
s0 involved in the complexities oi
(Special to The Financial Chronicle)
a social state that it, too, joins tne
LOS ANGELES, Calif.—George
Pnhlic in demanding subsidies,
Schemel has become affiliated
grants, aids, etc.
WThe 1914-1939 years in France with Quincy Cass Associates, 52J
were a period of moderate infla- West Sixth Street, members of tne
tion not comparable to the infla- Los Angeles Stock Exchange.

.*/

(1852)

The Commercial and Financial Chronicle

Continued

from first

Thursday, April 21, 1955

...

was

We See

increase

initiated

in years

the

debt

past.

his

own

never

so much less
fortunate—go all but scot free. The
impossibility for the average man to determine
with confidence and
precision just what is expected of
him was the
subject of lengthy analysis in this space last

if any is offered, is obviously "eco¬
:
A

There

sundry other facets of this situation which
thoughtful attention than they receive—
the contingent liabilities of the Federal Government
among them—but enough has been said to make the
superficial and political nature of current arguments
clear beyond any doubt, a
A

.AA.

;

\,.V;

;A.■ A"\

Compulsory Debt Purchase
a

What

really have here is

•

of compulsory
purchase-of government obligations. Irhas been suggested
upon occasion when emergency conditions existed that
some sort of
plan of compulsory lending to the Federal
a program

public. What most people do not seem to understand
precisely this sort of system is now apparently
permanently fastened upon us in the form of OASI. If
this concept of the
system seems startling to the reader,
let him calmly analyze what takes place under this
system.'

Continued

page

against

ties to the
us

some

distance
,

government promise to make

none of them so far as known
purchase compulsory except under
"social security." .■ •;%■*•%'
"'V

the total of all the Federal

this

debt

limit

certain

is involved

if bonds had been handed

the

system,

and

even

legally entitled to put an end
on
obligations already

no
way in which a holder of
his claim
against the

enforce

Treasury debt
Treasury if Congress

does not

accrued

to less than

such

"reserves"

center

the

attention

even

second

upon

ordinary

man

lay

income

outside

results?

■

that

were

fan¬

tastic increase in the

capacity for
production through a division of
labor, a sustained' increase in the
real wages of workers, a broaden¬

ing base

for

social

labor-

creased

largement

security," in-mobility, the en¬
of

instead

the

middle

our

among

elimi¬

class,

and

people:

our

have

achieved

All
here

our indus¬
technology and the effective

litical

our

democratic

institutions, is

what

the

po¬

reverse

the Cpmmbhisfs change
.

against; our name. < :,We have a
right to
be: proud/; of
these

As a Senator from Arkansas, I

contrast
market

showed

—

the

that

had

keenj personal interest

Nevertheless,
will

ments

all

achieve¬

our

undone

un¬

reviewing

further economic stringency,

any

economic

stability;

that

they

was

the

whole is at

all-

East, will listen to the Com¬

munist

blasts, even as they ignore
firing squads and the chain

Indeed, I should have
been unfit to represent my state
if I was not apprehensive about
every danger to the welfare of
the people who sent "me to the

munist

Senate.
Rpnat'>

the

high

increased

and

it also reported
disagreement
among
the

you

larger

sense

—

beapf with

page

news,

running
on

market

meaning

the

story.

And

pres-

cross-country debate was
Was this 1929 all over again?

was

wholly

phenomefor which the experiences of
past offered no precedent?

the

new

Was the stock market

iting

self-lim-

institution,

untouched
by
touching the general economy?
Or was it so intimately connected that a market
and

the dangers

still

ask

only

on.

for

ently,

not

crash
be

itself

the

followed

Depression

is much inclined to let it
go at that. He

1929

model

would

another

Great

the 1929-33 model?

another

personal

reference-

I have been deeply concerned not
with what may appear to
of you to be a purely local
regional problem. As a member of the Senate Foreign Relations
Committee
I
have
been

some

equally

with

concerned

the

way

the strength of the free world is
linked
to the strength of the
American economy.
The direct
dependence is plain enough. It is

visible in the form of our variforeign aid programs, all of

ous

which,

represent

sense,

plus increments of
ductivity.
Yet the

op-

invisible in form, is of equal if

line, reminiscent

Dr.

n°i

the

and

was hard
to diagnose yet
susceptible to cure, and not,
as in
1933-34, after the diagnosis
of a calamity was easy and the
cure
was
costly and painful.
I

knew,
tician

"preventive
himself

that

any
poli¬
practicing
medicine imperils

moreover,

who

believes

two counts.

adverse event which

First, any

occurs

while

speaking out, is attributed
personally and not to the

greater importance.

inherent

the

event

it¬

And second, if by his speak¬

ing, he

can help check any im¬
danger, then, when all is
well again, he is exposed to ridi¬

minent

free world and those of the Soviet

lead

Union

sequences,

that

without

had

getting

were

in the

entered

precedent

experience—an

era

that

new

human

was

im-

mune

the

old

boom and bust.
took

disease
more

economy

;

era

that could bring into view
disease-bearing bacilli in the
general economy.
The time to
act, it seemed to me, was when the
scope

whole; that the stock market

simply mirrored this shining fact;

developments, and
use it as a micro¬

cule

substance, that
way,
things

better and better
as

any

It is of equal if not of greater
importance because it goes to the
root of much of the ideological
contest between the forces of the

every

Not Interested

market
sense,

forces

Coue in

self further about it all.

self.

They argued,
every
day in

the

experts hewed to
1920's.

stock

de-

Some

many
and complex
therefore, it seemed of
utmost importance to study

to him

though

economy,

Com¬

these

indirect

pedence of the free world
American

For

the

orators.

reasons,

pro-

rich

our

behind

massed

gangs

sur-

timistic

are
being built up against future
Treasury, and he does not trouble him¬

national leg¬

our

revolution

opments.

stock

But about such
things as these the leaders of neither
party are troubling themselves. Nor are
they concerned,
^apparently, with the really serious defects of our
present
tax system. The
"simplification" of tax requirements
about which a
good deal was heard when the 1954 law

The

the

experts

.told that "reserves"

payments by the

not

occurred

islature. A

admit that I also had a "political"
interest in stock market devel-

inherent in such
open-end assumption of debt. Payments
-by the public under the system are called "taxes" and
the

stock

front

feasible way in which

public

point
the

While the press began to report
stock
market
developments
as

Senator Byrd has been able

the

stock market crash on .the 1929
model was in the making as a
forerunner to a sharp deflation in

Yet

Treasury can set up effective "reserves" against these
liabilities, any more than it can set up reserves
against

its bonded debt. Yet not

that

know

what

non

really

The Great Debate

liabilities.

Of course, there is

Century

factories and

edented $75 billion.

10% of the present value of such

the

20th

of over $30
billion,
mortgage debt during 1954
by $9 billion to
bring present totals to an unprec-

uninitiated;
Byrd are not
And probably few of the
even

runner

between

was

obscure the facts of this
case, at least from the
but we are certain that men
like Senator

come

rate,
longpacing himself on
like

while

against the mounting liabili¬
being assumed? For one thing, of course, prob¬
ably the popular misconception of a "reserve" (con¬
sisting wholly of the IOU's of the obligor itself) tends to

these

this

that

greatest of all revolutions of

the

trial

•

ties thus

great rank and file realize that

know

1954,' there jwas :>a
sudden tthere was. an excessiveuse of with what hag been
going on in
change in the rate of the rise.;%redit for Speculative purposes;: the Communist
Utopias where
Stock prices shot upward on what an
obsession - .with ■■ capital - gains class distinctions and telass
priv¬
can be
envisioned, graphically, as while plant capacity for the pro- ileges of the cruelest and most
a perpendicular 90
degree cliff; so duction of real goods lay unused, lawless sort are the order of the
that by the first of January 1955, a massive inverted
pyramid of day.
stock levels reached heights equal
instalment and
mortgage
debt,
to and even in excess of those
and an increasing imbalance beSevere Depression
Must Be
1
on the eve of the 1929 crash.
tween agriculture and industry.
Avoided

time

Yet where is the clamor

appearances.'

nonsense.

in Leningrad and Moscow, but oft
the assembly lines of American-

the nation

of the bond issues found in the
markets.

by these

the

signs of self-generating revival,
Today, also, instalment debt for

provide the funds, and there is no way to force
Congress to do anything at all. In any event, these socalled social
security obligations are as truly debt as any

deceived

and

You

arrant

from any cause, entails the risk alone know how to channelize the
progress in the main sectors of °1 further pinching out what even
forces of social production in an
the economy. Even today, despite
is a narrow margin between orderly way. And make no mis¬
the
general recovery of
recent solvency and widespread insol- take about it.
Men
epvious of
months, agriculture, the principal vency,
between social stability us, men who do not know the
activity of my own state of Ar- and social unease. In the sense truth about us, men who are now
kansas as of many other states, re- that the word "political" means
wavering or are uncommitted in
mains severely depressed, with no
the total life of a people, I frankly the contest between the West and

default

debt. There is

-dramatic

was

shrinkage and tightening

assumed, but similar argument, so far as practical results
are
concerned, could be made about any of the Federal
can

tween

farm

eligibles under the system. There is, to be sure,
legalistic argument at the moment about whether

the Federal Government is

serve

the facts upon which dergo another severe depression.
economy at large.
From Septem- the experts reached their oppo- Should that occur, you can count
ber 1953 to November 1954, while site conclusions.
For as I have on the Communists to burst the
stock prices were pumping their already
said, Arkansas farmers ear drums of the world with their
way upward, every other index of
and many of their neighbors in blasts that they alone know how
economic activity—steel produc- adjacent states, are now feeling to provide full
employment; that
tion,
employment,
carloadings, a very tight economic pinch. And they alone know how to'attain

the

some

slope.

and

controversy. Nor is this merely "con¬

tingent" debt. It is
to

debt which

the rulers of our
natural interest in
war if only to pre¬
themselves in power:
' A

reason,

society have
bringing on

through the union of

Inquiry

graded up a - 45 degree- the economy as a whole. •• They
But then, suddenly, in be; argued that many of the-1929
November and December elements were already on hand:

The

liabili¬
they do not sur¬

cept in time of war; and that for
this

was

The Federal Government has
already assumed
ties of this sort which in total
equal, if
pass,

depressions

public—although
guise

road

rose

though it

have made their
such

successive

operation

prices
;

annuity. Some
long had systems of offering annui¬

other countries have

know

sustained narrowing of the gap
between economic and social in¬

;

The Steele Market

majority of all the' people in this- country who A
anything-~-it is the: ambition of f he proponents of the

make this payment

one

increasing severity; that we can¬
not provide full employment ex¬

equalities

system to make it universal among ;these earners as soon
as it can be
arranged-^-are. required to pay what is termed
a social
security "tax." The fact is that they are required to

from first

that

future payments to them in the form of

that

The vast

handful

a mass of the dispos¬
the other; that we will

and

side,

into

monopolists

sessed

nation

can

earn

process

economic

is in the fatal
by which we

economy

ward way,

Government be instituted. Presented in this
straightforhowever, it never could be sold to the Ameri--

•

are

need much

our

American

WeekA:''AAA:';A;:Av>pyA%:yA%^

imagined, in this country prior to the ad¬
?

have retained

virtual

thumb, that

sore

the not

•

vent of the New Deal.
.'A

complex

that the rich be soaked and the less fortunate—sometimes

security. But semantics aside, what
strange sort of hybrid half tax, half
public debt, the exact like of which had never been seen,
perhaps

rewriting of

enormously complicated and cumbersome system of
levying and collecting taxes. And it is still evident enough
that the system, despite relatively minor modifications
here and there, is still drastically progressive,
demanding

nomic" not "social"
is

divided

fact stands out like

our "social
security" system. We have no
why it should be dubbed "social security." Indeed, we
have not the vaguest idea what
meaning could be ration¬
ally attached to the words "social security." The security

have here

extended

basic nature of

will

tax

idea

in this case,

law, and it would be impossible to know in advance how
courts, or even the Treasury, will interpret contro¬
versial provisions.- Still the fact; remains, and still the

party

•

There are a number of aspects of all this which most
certainly would puzzle an informed observe^ seated on
Olympus. One of these, and one which should have had a
great deal more attention than it has ever received, is the

offered

to arise out of such

practice

grip

being framed is hard to find now that tax reporting
paying periods have arrived. Of course, it would
too much to expect no troublesome technical
problems

limit,

that

and tax

page

the

virus

cycle

But other experts

opposite

line,

that

and

orthodox

its

satellites.
It
is
Communist
doctrine

that Capitalism such

know

as a false prophet of doom and
gloom. Yet it seemed to me that
any reluctance to do one's plain
duty on the ground that it might

unpleasant personal con¬
was
a
rank form of

negligence.
So

the

question

inquiring

America, carries the seeds of
destruction within itself.
Npt a

into the stock market-was put to
the Committee on. Banking and

day

Currency and

gans

passes

fail

when

Communist

bleat

the

or-

world

deed,

a' web

was

agreed to.

In¬

of statutes a enacted

(

legal

command

•decision.

The Commercial and Financial Chronicle

formed a kind of
pointing to this
Employment Act

the years,

over
.

Number 5422

181

Volume

The

1946, for example, imposes on
all
arms
of the Government a

their
part
in the common work of
maintaining
economic
stability
and maximum production. Then,
;too, under the Legislative Reorganization Act, the Senate Bank,ing and Currency Committee has
a legal duty to oversee the work
solemn

;

play

obligation

grow stronger through its access any such opinion I in my role as
Chairman of the Senate Commit¬
to more nutritious soil once thetee. I think that no one, except the
surrounding weeds are plucked,
free market itself, can say whether
'There is one more point to be
a stock price is too high as long as
made in this general connection,
Much was made of the fact that buyers are willing to pay it.
Speculative Activity
I insisted on using the word

Exchange

and

Securities

the

Commission, which issues regula-

;

tions

affecting securities offered
on
the Exchange, and the Federal Reserve Act which regulates

the flow of

and credit.

money

Appraisal

within
the framework of these laws, it
May

.was

that

add,

duty nor the intenthe
Committee-, to
say

the

not

.tion

here

whether

stock

prices were too
high, whether they could safely
go higher, or whether they should
be driven down.
Any argument

J-

make

soon

assume

the

But

proper
function of the Committee to in-

r-was,
:
■

increases

appreciation,

duced into

angels

darkness.

admitted

that there was this difficulty, but
suggested that I felt like con-1
gratulating

myself

for

having

era.

that there

say

market, and in due
will

for

summing up the results of
hearing thus far—and there
several lines of inquiry which

are

fore

further—I

pursue

lend

Of equal importance among the
involved in this specula¬

tain

ful

the

before

avenue

however,

quick riches, hope¬

;.i

•

had

immediate

the

benefit

fever, is one I've alluded to

sional

have

that

belief

because

avoided

far

thus

de¬

study

such

Committee

feel that

was

1934,

being

faithfully -and
or
whether it

the

avoid

ourselves in a major area of our

was

fall

have better educated

must

private capacity as he seeks" \
his personal good, while trying to
evil.

Legislators,

the device of

through

hearing, can bring
together relevant facts bearing on

standard of prudence.

But they-

individuals

force

cannot

rally

to that standard if siren songs puulL

them

less

direction

opposite

i an

with promises of

windfall, effort¬

joys, and wealth.

what

you

individual in that society, acting
in

helped create it for them. I said
wisely that when I undertook the study,
served,
can
be I knew of no wrongdoers. The
*. better
served
by the maze of witnesses who were called to aprow
will automatically be better the stock market. We are now at
forces, public and private, which pear before the Committee were
than
today simply
because - 24 work reviewing a number of leg¬
work through
the stock market not there in the role of the acislative and administrative rec¬
? ] to influence the general economy,
cused. They were there volun- hours have passed. This shallow
ommendations affecting theV Stock
' - tarily upon the invitation of the optimism is uncomfortably rem¬
^ ; ^
Committee because we believed iniscent of the attitude which pre¬
Nevertheless, there were those their experience was such that; ceded the Great Crash of 1929.
} who said that the hearing should they could help us in our work, Note that I said "reminiscent"—;
not have been held at all.
Of I hoped, therefore, that the word not identical in scope or oasis.
quire whether the public interest

Enact

prudence and intelligence of eaclx

widely, legal; responsibilities, in the
predicted at the end of World course of trying — and perhaps
War II, we have entered a new- failing—to educate the public as
economic world in which tomor¬ to the purpose and operations of
pression,

little way

very

course.

management

from

different connection. It is the

wise

democratic. society

widespread

will,
infinitely
the
greater part of the task of wise

fact, be the only people who have

tive
a

but

keeping

laws

the stock market.
Since the last study by a Congres¬

factors

life alone... It is the truth that the

may,

aoreast

come

society, and not to its economic

itself

laws reach

on:

V':

Committee

own re¬

truth applicable to virtually
all aspects of life in a democratic

life savings in the1 market,
in the expectation.' that it: will
come back to them as :a bonanza
The

be¬

may

old

cer¬

their

strike.

sponsibility to haul up the danger
signals.
But once this is done,,

continue; to i pledge

amateurs

persons

Committee from its

rency

Committee

market is

stock

risking their resources on.
a
very chancey game, this does
not absolve the Banking and Cur¬

charged, stock levels are now at
all time high. Despite the clear
warning sounded by experienced

witnesses

its

have in

- an

that the

the

agantly private

hearing itself. Far from destroy¬
ing confidence, as some people

the

this

A final word—however extrav¬

realize that

certain air of irony to trie

them

wants to recommend.

reports of recent days

newspaper

out of order

discuss

they have been per¬
detail, and indeed be¬
Committee formally af¬
signature
to
what
it

fixes

the Committee and its staff intend
to

public dis¬

before

fected

time

Irony of Market Behavior

the

these

course,

presented for

tain, that it would

inclination to do just that.

cussion. You will agree, I feel cer¬

are

marked signs in some quarters of

amount of credit, the tendency ..to.

contest be-

because of talk about

new

of interest to report that several avoid credit restraints, the tend¬
leading members of the press
ency
to resent and resist aU
corps who followed the course of
warnings of caution, the intro¬
the hearing, complained to me duction in the market of a rash
that the hearings were lacking in of new issues such as
penny uran¬
melodrama. It was difficult, they ium stocks which are trans¬
said, to write colorful stories
parently speculative in character.
when the Chairman failed to produce the sense of a

throwing all caution to

the wind

"study," and not "investigation"
My reference to excessive spec¬
in describing what the Committee ulative activity is limited ex¬
undertook to? dd.
That word clusively to the way the stock
"study" was carefully chosen, for prices are being reached. The
the term "investigation" used in , method involves not only the rate
connection
with
Congressional of the rise, but the whole wellcommittees has come to imply known cluster of things that tra¬
the presence of a suspected pres- ditionally go hand in hand with
ence of wrongdoing. If the aim ; high-running speculative fevers.
had been a few cheap headlines, It involves the prevalence of
then the term "investigation,"
tipsters, flamboyant advertising
with all its clamorous overtones, keyed to expectations of quick

fiat which tween the angels of light and the
hash

enterprise system.
and it remains, a

free

would

legislative

power
would

effect

this

clearly would have been in order:
And indeed, it may. be a matter

of Market Level

(1853)

V..

•

the

chief

two

cism,

grounds

criti-

charged that the motive

one

"study" would reassure the finan-; Since the Great Crash, we have cial community that the hearing made many improvements in the

of the Committee was the narrow,

would be conducted without re- structure of our economy and in
partisan desire of the Democratic Sort to an all too familiar patterns the emergency apparatus that is
..majority to embarrass the Eisen- 0f
broad
accusations;
that
it available to the: government in
hower
Administration.
This, would be conducted soberly and case of need. We are thus entitled
charge, if you stop to consider it not in a witch hunt style. > .
/
to hope that even now, we stand
.

Chicago, Rock Island & Pacific

*...{ for a moment, is patently untrue.
For if the Democratic majority on
the

Committee

degree

succeeded

excessive

forestalling

Excellent List of Witnesses
Which

any

effects, this would redound to the

was

credit
who

matter

Republican

the

Party

the Executive.

control

fact, if the Democrats
were guilty as
<charged of narrow partisanship,
then they merit the further charge
of partisan stupidity. For the course
the Committee

they should have followed—if the
charge of partisanship were true
•—was to do nothing at all.
They
should have stood

idly by, await-

that

feel

walks

not

Presidency; and once this was
followed by a severe contraction
in the economy, the Republican

relish

that the Demo-

discredited

^crats, as in 1933, would win control

other

the ;White

House

for

an-

with

not

the

stock

improbable,
of the indi-

some

declined

recent
habit

this

since

respect,

years

for

has

Senators

some

the

become

mis-

hearing imperiled confidence

would

was

general

Committee
that

economy.

One

witness
before
the
developed the theory

prominent
■

ground

the holding of

that

confidence

the

economy

fragile and subtle thing;
that great time and effort goes
into its creation, but that it can
was

easily and quickly.
implication was that

clear

the

inquiry of the Committee was
really a mission for that kind
of destruction. Though sufficient
to

this

the

answer
a

look

charge should be
market, I

current

think it is worthwhile to add the

remarks

,He

observed

the

economy

weed than

different

witness,

that confidence in
is more like a rank
delicate flower. The

danger is rather that it will grow
into

over

confidence

and

exces-

sive

speculation, than wilt and
shrink under the inquiring eye of
the
Committee.
Surely,
if the

economy

cannot

stand

sympa-

thetic
then

scrutiny without fainting,
ought to know this truth

about it and prepare for the worst
at

once.
a

On the other

hand, if it

strong economy, it stands to

the

not

case

any

hearing over which I presided.
regret to say that this abuse
0f witnesses nevertheless cropped

.But I

.Up
on,

feature of what went
despite my earnest desire that
as

the contrary would be

the case,
what did the hearing bring to

destroyed

The

and

abuse

light, and what did it accomplish?
Before I try to answer this question, let me emphasize that I am

only

here

speaking

Committee

The

for

in time issue a report
or

may

own

coincide

not

view.

myself,

whole

will

which

may

with

Moreover, my own at-

what I heard the
witnesses say, and on what the
replies to the Committee questionnaire revealed, is subject to
titude, based

change

its

details.

But

this moment, I am of the opinion

that

are

in fact experiencing

the beginning of excessive specu-

activity in our market. I
am
not implying that
I think
prices are too high in the case of
individual stocks or in the average
market level. It would not only
lative

improper

for me to

venture

■

to 4V2%

income tax saving from

dividend will amount to about 54 tion

deductible

preferred

of business April 29, the stock

event

longer hold true. ''

be convertible into the

sold, the amount of

Relationship

Market to

Because of our

study, I, for one,

have had my
the

attention focused all
sharply on the elements

of danger

present in the excessive
mortgage debt, in the excessive
installment debt, and on the way

around

January;;of 1955.

have

had

So, too,
my-'httention focused
connection between the

the

institution
and

of ' the

general economy.

I con¬

hesitate to pin¬

would react to events in the other.

without

going into the com¬

details of the case, the ex¬
of
varying
degrees
of

plex

istence

intimate relationship between the
market and the general economy,
was

borne

out

by numerous wit¬

before the Committee.

nesses

became

this reason, it

For

would be well if the

share-for-

the

payment of the pre¬
ferred, which was outstanding in
the amount of 646,900 shares, the
road
has -arranged
with invest¬
bankers

the

for

sale

maximum

Debenture

4V2s, 1995 at par.

$65 million

the

Income

The

funds
company's

necessary

the

from

come

treasury.
As

of the preferred stock

some

be converted in the interim
redemption, it- has been

ther

stock

feeling about a new era
point where great num¬

bers

our
new

refuse

economy

can

believe

that

exposed

dangers; if we refuse to ex¬

amine it

critically with

view to

devising safety measures against
gathering peril,
then
this
negligence will in itself be a mul¬
tiplier of danger.
I do not say
any

that

have been completely se¬

out¬

to the com¬

the

one

$48,690,000

only

2%s,

Mortgage

with

conservative

most

before

capitalizations in the industry.

provided that to the extent that
the aggregate redemption price,
exclusive
of
the
accrued
divi¬

ruptcy Rock Island has benefited

remaining to

of stock

dends,

redeemed is less than $65

million

the amount of bonds to be issued
and

will be reduced accord¬

sold

Even if the common stock
rise to the conversion

ingly.

not

does

to April 29,
if it goes no
higher than last week's peak, fi¬
parity
and,

prior

105

fact,

even

will

converted.

pointed out that many of the pres¬

the

substantially

of the stock received

have been improved

even

sold down in the middle 40s.

Thus

question of large capital gains
arises if the preferred is sold or
held
for
redemption.
No such
the

gain is established if the
converted into common
the common stock retained.

capital
stock
and
If
were

none

the

preferred stock

converted

the opera¬

tion would involve a saving to
company

the

equivalent to more than

by the com¬

prehensive dieselization and prop¬
erty improvement programs which
have involved the expendinture ot
more than $207 million in the last
10

Trafficwise, the com¬
has also been bol¬

years.

status
to

industrial
area

These

important degree by-

contiguous

favorable

the service
territory.

growth of

and

known

very

two counts. Oper¬

competitive status with respect to
transcontinental traffic

low carrying price and
after it was issued it

bank¬

its

lucrative

pected

since

years

ating efficiency and the company's-

their shares in the reorganization

that
a

then

1st
liberal
sinking fund, and $48,542,220 se¬
rial equipment trust obligations,
mon

ent holders

If this

would

There

stock

reaches

are

standing in addition

stered

part.

consider¬

strengthening and simplifica¬
of the road's capital struc¬

tion
ture.

siderable amount of the preferred

increased

than

stock

and looked at the
in the larger econ¬

would

analysts

most

leaders, broke the hypnotic spell
cast
over
them by the rise in
prices,

stock

common

of the
opinion that it would be more
compensated for by the fur¬
able,

pany's

of which the stock market is

wiil

bonds

$9.07, pro-forma. While

dilution

nancial circles believe that a con¬

danger signs

in which,

quite
active and -shares. On that basis share earn¬
high territory for ings of $10.96 last ye^r would be
the

balance

the

1,408,768 shares to 2,058,862

reduced to

would

the

non¬

all

new

fraction above 97, be¬
backing off slightly. To fi¬

ment

substitu¬

for

will

outstanding
from

the year, a

nance

none

general public, active participants
in the market, and government

omy

charge.

is converted,

fore

stock;-market

point the precise relationship be¬
tween the two, or how either one
But

mon

moved into

will
company-'s

Last week the com¬

basis.

may

the

fess that I would

stock

common

General Economy

Up to the close

on.

the In¬

Debentures and the Federal

come

to $105.54 a share.

slippages from September 1953 to

caution

much

too

reduction in charges from 5%
•the preferred

capable of flying into outer space
where
the
laws • of gravity
no

their

blamed

the

chief

second

society

the farm economy has lagged sub¬

did

appearance

,The

.of

stantially behind other sectors in
the general economic recovery of
the last few months, following the

who
any

the

criticism

kind

not

treat,

add

before a
Congressional Committee for any
purpose whatsoever. Nor can they

viduals

punish by adverse publicity any witness with
whom they disagreed. As I've already said, I had hoped that this

years.

market

would

$1.00 a share of common now outstanding. This would stem from,

cents, bringing the total payment

de-

ganizations who were extended
invitations, declined to appear on
the ground that they had no di¬
*

that

would

conscious

was

involvement

•

deductible

Several individuals and br-

rect

how-

ever,

however,

economy

This,

sign.

the bursting of the speculative bubble under a Republican

of the

life.

managers

sure-thing"

men

other

stock

But

that we have by no means reached
witnesses "a
perfect and riskless society—
It is un- "a

true that we had too
from
the
financial
community
and
too
few from

many

event

shake-down.

our purpose,

one.

doubtedly

market.

ing

list

the

excellent

the

to the hear-

ings themselves. For

speculation and its familiar after;

brings

ground than in 1929 in

firmer

•

Chicago, Rock Island & Pacific
has now officially called its pre¬
ferred stock for redemption on
May 9, 1955 at 105 plus accrued
dividends from April 1, 1955 to
the date of payment. The accrued

trends

are

Until

continue.

how much preferred

ex¬

is to

converted, it is difficult to es¬
1954
earnings with any

timate

it is gener¬
between
depending on

degree of accuracy but

ally felt that a guess of

$12.00
the

number

standing,
On

$15.00,

and

this

of shares

should

basis, there

able optimism as

to be out¬

reasonable.
is consider¬

to the possibil¬

ity of more liberal dividend
cies in the not too distant

poli¬

future*

(1854)

The Commercial and Financial
Chronicle

Continued,

from first

the

page

Business Prospects in
The Coming Months
The

1954

low

the

tyt

tit

and

try in the second half of the

annual

rate of

$355.5 billion.

was

In the first three months of

national

gross

ning at

product

1953

the

rate

At this level,
the annual

and has .reached

peak

quarter

Building

Particular strength has been
evidenced in spending on consumer
durable goods and on con¬
year.

tieg

index

represents

increase

the

above

reflecting

the

and

ditures

months.

however, the index of uuiauic
durable
manufactures, at 147 in February
1955, is rtiU significantly below
the

record

157

established

continued

July 1953.

The major reasons for
goods pro-

duction to reach its 1953 peak are
probably the cutbacks in the defense program and the lower lev-

els of business
spending on plant
and equipment.
The production
index for nondurable manufactures

has also
at

now

been

rising and is

the

near

record

level

Automobiles, Housing and Debt
Expansion
Those wno
inose who

nilfinnk

tinuing
cite

economic

variety of

doubts,

fpnf/+n

ihp

„linnnrt

such
of

Dressures

j?ulting

for their

reasons

production

(1)

auto¬

may

cut

back, (2) some construction activity, especially residential building. may weaken (3) the current
improvement

soft
to

goods

production

end

the

textile and other

and

before

(4)

year,

housing

(1)

births

the

from

money
h1

hous-

new

running at a

£ate ^bicb 1S !wice estimated
there is

Jjttle doubt that a continuation of
Jbls trend will add significantly
t(J vacancies. Also, the rapid rise

of niortgage debt

gives some

starts

the

present

may

high

mean

some

tightening of lending terms

This

pro-

Housing

Act

1954,

may

far this

A sharp
residential

year.

™te

nuiiamg,

economy

Automobile
ivuiomooue

Prodnetion
Production

nowever,

not

mai

completion
nullion housing units

reasonable

The
The

the

automobile

probably

surprised

market

the

has

industry,

and goals for 1955 have
been sue-

cessively raised,
rent

estimates

reach

bulluing

estimate

that

some

cur-:

Consumer

sales

high as 6V2 million passenger cars, or even
more, assuming no major or protracted strike,
as

Howeverproduction

in the first

sizable reduction of out-

PU^nn^VeTd+hal such
the effects of 0ftbeyear«
wnue

traction

thpUm

will

con-

probably be felt

"^Portent industries,

:
xney are not likely to be
as

bring about
in

total

—

Both

credit,

strong

renewed

business

de-

activity,

total

billion,

$22.5

at record heights at
1954, and about 1-2%

were

end

the

previous peaks at the
Consumer indebted-

of 1953.

ness increased
ness increased

postwar

sienifieantlv in the
sigmiicaniiy mine
not only

years

dollar

growth .of the past 12 months, on
was at about the
same .pace* as the rise in
disposable income..

the other hand,,

Instalment

credit

has

recently

shown

renewed evidence of rapid
growth, which is not unexpected
in view of the
strength in automobile sales; increases will con-

™aX^e.?.l°_SeJ- tinu,e
imply

Debt

credit, at $30.1

whether limitations upon the

Pansion

consumer
a

debt

ex-

may

curtailment in the

market for automobiles and other
consumer durable goods.

suredly
the

difficult

amount

outstanding

and

It is

as-

judge

when
distribution of

consumer

debt

The ^"o' Situation
expectations are for a

implica"Z :
present financing pracdebatable, it appears that

are

and

ange

mortgages
least

the

houses

1.2

1955
to

expected

Lending terms
liberal

1.3

for

the

probable that wage increases
be attained without extended
0

months
m

but

^
liKeiy to De7/xaisea a as

.P°
ucally'

inventories

ako

tracted

tend

inventorv liou

The Second Half of 1955
a

than casual but by no means

the

w^ere

allowed

Possiblv

later

likely

the

affect

year,

some

which

current*

time

production

• need

for

ness

inventories

Thus,
the

higher

sail;

and

somewhat

most

months

point

Spending

rose

•

m0nths

1954

eral and

are

statistics
ds

has

sales

Consumer spending
ably set

sonal

income is

building would not

P€cfed»

surprising.

course

of Ameri-

n(jweyer> tne course ot Ajneri
can business
activity is not determined

and

whniiv hv trendc in

the

same

time,

nnn

durable

goods

Thus,

the

de-

1953,

spending by the Federal Government, by businesses on plant and
equipment
and
on
inventories,

and

goods

consumers

durable

all

somewhat

their
rate

increases
are

levels
be

ex-

em-

new

larger percentage of
the high
residential

will provide
kets for

mar-

fur-

•

—

While

equipment

were

still

and

inven-

declining.

Conse-

in the industry do

°£ aut(>niobile sales,

has

economy

The

—

repeatedly

ways reflected the
international develop¬

past

conceivable

that

several

months, uncer¬
tainty with regard to the future

may

again

some

have

buying

contributed
consumers

The

and

business.

;

present

international

out-

]aok ^ confused

and complex to
contradiction. There
is some hoPe that relations with

poin^

Hl^Russians

improve, alprogiess
toward

-ay

!?y

acb.teying

basis of

^hlcb ,would Permit
stantial
cutbacks

exDenditUres
^
f

?La

1955-

i«

cooperation

further sub¬

armament

hardlv

lib-aW

tr*

nmhLmo
?p ^ f:sf t(P
^

ranid

a<?

nncip

,r - e econ°ni,y in
°n the other hand, there i~

sboo^n& war; the result
P105.1 <=er'ainly be to

would al-

increase

activity, employment, irfcotnes and

prices,

The immediate and direct economic impact of renewed hostililocal

^
be 0f

many

some

expected^later _in $he_year,

plant,

building

strength to the
appliances, house
nishings and other goods.
General Outlook

pea

the

pros-

incomlesa WnaUy,
of

impact of

Per-

declined, but state and easing in important industries
government
outlay^ con- tobe

rising, in 1954, the upturn deveioped while spending by the Federal Government and
by business
tories

.JUrther"
unions

producers

prob-

pect and anotber round 0f
wage
boosts ;n imDOrtant industries will
Pv°sls ln important industries will

divergent

downturn

able to moderate the
?Lpu+
event, the
contracts for the two lead-

ments.

contnb-

record

and hours

trends

are
frequently in evidence
jj-j various sectors of the
economy,

since

International Outlook

re-

will

onerous^u?*

postwar

the

a new peak in 1955.

annual

^lR?ebably not

and

manage-

major proportions,

However, the
fairly gen-

?t l! l0CcT£Ti.

„

are

nondurable

thaf*£

0ne rna3?r pr?~

some

evident in aggregate

the

0^11? has" been runnina at peaK
runnin- aToeak
?eni.iy
neen
levels, The strengthen the mar£or
automobiles

basis

achieved

'1S Possibie mat the

and

sharply
of

heavv

SS51

Consumer Spending-M^onsumer

c]osjng

the

^ ev^ should a slrike de~
?lop m Jhe aut^obile industry,

1954.

pro¬

involving

^mmate until late in May,
W^klc1 1S n,ear,
fnd ® ,tbe sea~

ahead,

and a further rise

the

in-

without

acceptance,

„

busi-

inventories

Akn
supporting industries.
Also, an
an
easing in the rate of residential

However

™

and

l*?"*

levels

met

jnvojve

the

pose

larger
ldL*?L

than

signs

accumulation

'imnnrtant

major

ment' of the guaranteed

get
; down to
abnormally low levels in
^1954^ and their replenishment in

same

strikes,

ment

iiTthe^roductioiTrate of^utomo- lartment store sai^s and^otbers'6
biles

will

•

1955, it .appeared that
liquidation of business in-

increases in sales

Looking ahead, it-appears that

aU"tomobil<T industry ^nd Dossihlv
others
n.
y
1
y

uted to record sales.

wage

also

can

Changes

—

behind changes in prcduc-

months

quite

round

more susbtantial than those of
i954 or 1953i
However, it seems

"a"

"J.

business

to lag

new

year.

not be

may

recent
liberal as in recent
as

finance

million

Present

half

Business Inventories

sufficient volume of funds will
available
for
investment
in

?s lon? as the automobile local

contribute to

the

rriulcf
tions of

good

™e

rAt

are

where

arena,

second

the

comparable .recent months has
been retarded
by higher requirements of prodebt out-

mortgage

home

Whne

instalment

billion,

domestic

for

year,

consumer

above

Consequent^,

was generally regarded

end

—

Jons

for

which apthan7ie nas
some time; the other is
scene,

of
wage increases in 1955 whicn will

Consequently, compari-

standing with earlier periods

1955. This would mean total starts
about equivalent to 1954, which

the

rentals

very

pre-

vailed
d™p

seems

merits particular
attention.

below

qUarters.

Two

rate

rule, and monthly carryjng charges on most homes are

upturn
in
business
activity
is dustries.
A
more
likely to be followed, with some
difficult
question
is
lag, by a rise in business spend¬ whether the demands for some
form of guaranteed
ing on plant and equipment.
annual

not

radically

ln,the
f

m0re

become

may

clouded

been for
international

ventories had iatgeiy come to an
widely dispersed end, .and present
prospects are
than a quarter century ago. Fur- that
inventory building will be a"
thermore, interest rates are sig-sustaining factor in the second
nificantly lower than they were - half "of 1955.
Somer"business inin 1929, regular amortization has
ventoriies
is

of events.

course

the"; disruptive strikes

in a
large decline in
mortgages on multifamily structures, which means that mortgage

debt

"mes-

a*l tim^ an<i which
affect;the

^ Tow
^

EES*than ouartefofP?954

tices

well contribute to some decline
in residential starts below the 1.4
million annual rate that has

and

does

well continue into

Some Major Imponderables

yjy
w/iu
P°D<ea <°y me latcot out y cj VA
latest
survey
01
spending intentions, which confirms the general thesis that

question

„

^entS ^ t0 ^ ^

i,°

may create difficul¬

are

Appraisal of the business outlook must necessarily proceed
with* due awareness of the many
imponderables which prevail'at

^endine

icu

1,2

important support to current business
activity, the outlook for these
strategic sectors of the

increase

ofW1the starts
the
setaPrt°sSS1in recent n0t t0° meaninSful*
reJen

months reflected the impetus

eated-

con-

cer1}: Tbere is some prospect that

continuation

nlant and

^1®

However,

1956.

One is the labor

However> ™re wide" dation persisted in the 4ce of
in spread home ownership has been sharply rising output. By the early
reflected

household formation, and

home building, both
largely through an excredit, are providing

financed

reversals.

movement may

course

outlook for the remainder of 1955. tion.
In
1953, accumulation of
Hon}e mortgage debt outstanding business inventories continued
1S
^m°st 4 tunes as large as n for a few months aiter p od c-

re-

larger families,

On the other hand,

unending

The

year.

building

appear to be a crucial factor, however' in appraising the business

C2)

housing facilities

mg starts have been

and

pansion

residential

of basic importance.

sit-

1954

availabi'lity of mortgage
mortgago
lar®e a"10U"'S'

come

mortgages outstanding is increasing rapidly. Since the automobile

increase

minor

pears

$75.6

di;

likely to assume major proportions, and the broad recovery

'^The
P,.

1954

tterfor the future is

record

market

record

representing

lending terms

building

cited which

XerdbsraaPnd (TthTcLtLinl

the

debtedness is high and
rising, and
(5)
the amount of real estate

prospect presages
1955 fully as large

(3)
ownership
compared to renting, (4) the sus-

may

consumer

level

the lower cost of home

improvement

including that

mobile

record

rPciHpntial

factors may

and

"^.Fauiument

pge debt and the liberalization of

some

are skeotical of conSKepucai or con-

of the end of

continuously in one
interruptions

without

broad areas of uncertainty loom
may-'everTin- Particularly large at this moment,

somewhat' in* the

jLBusiness

periods of reindicators sel-

not

lnceiy

in the latter Dart

other

declines around mid-19o5

any

Total

—

move

even

the year. The
steady postwar rise
jn spending by state and local

the year.
% p.
-4

con-

The major uncertainty is in the

rate

mid-1953.

some

of $9.3 billion for the

1955

be higher

urease

in 1954, and
probably somewhat larger,
Whether the rapid rise in mort-

the failure of durable

.billion,

Even

the
year,
that expen-

new

Spending

governments is

reposses-^;teVeUing .'off

mohtgage?.^^htedhess

estimated

aggregate construction
a

off.

Home Mortgagc%f-The growing

discussion,

not

may

are

Government

spending by

likely

nnmtJr

level
not

edness that is in the forefront of

construction

throughout

year,

market

units;

previous levels.

uation

industry in recent
Despite this sharp rise,

have

activity will set

the

great

construction

rate

million

though these levels

The upturn has been most
pronounced in the durable goods in-

dustries,

1.4

current estimates

1954 lows.

strength

contracts

sustained

in-

the automobile

annual

exceed

is the fact that in every one
the
25
industries for which

was

rate

123.

mid-1953, when the

February 1955

to
are

has also'given rise to

new

separate seasonally adjusted staties
are
available, production
in

expected

si°ns.andnn cjepit

great *

outlays has been 10% above 1954;

dex stood at 137^ Indicative of
the broad character of the recovof

displaying

annual

Furthermore, the present level is
only 2 points below the peak

ery

been

level i. of

indus¬

points from the 1954 low of

months of

—

1955, private residential housing units have been started at an

The

—

trial production is currently esti¬
mated around 135 (1947-49 =
100).
This

bave

months

in the

Production

Reserve

Construction

and

easing

strength in recent months.' So far

;

Industrial

not
.

some

dom

rection

greater support in the second half
of the year than at the
present
time.

a significant restraint in the
-governments* shows no
sign of
predictable future, and a tighten-ending* 'large unsatisfied needs
ing of lending t^rms is not
anfi^i- ..remainHor public facilities of ail
pated.
It
is
not
believed,' tl)at
jd^ids The<> cutback-in spendftit*
lending provisions have been
by: the Federal Government-'is
liberalized as io create the
behind lis* Spending appears" to be
pect of a sharp rise in

gliding and construction activi-

Federal

would

unusual phenomenon..

the

Economic

covery.

omy

automobiles, instalment credit

may

back in automobile production in

that

Shortages of funds

fairly substantial cut-

the latter part of 1955

the

credit

perience

presage

important sectors of the econwhich are likely to provide

are

amounts

to be

in the first six months,
a

struction.

year

of 55-60%

continue

ahead, but that later in the

development; the
pattern involved sales

Therefore,

run-

is above

output

rate of

was

will

sufficient

necessarily

resumption of a downturn in
aggregate business activity. There

terms that will permit furincreases in outstanding in-

with
for

normal

customary

annual rate estimated

close to $370 billion.
total

1955,

ing does not
the

ther

product

was

burden of meet-

funds

stalment

that

available

Before World War II, a production
cutback in the automobile indus-

was

ment

third quarter, when gross national

year.

concomitant

ing payments will restrain further
instalment buying. Present judg-

Thursday, April 21, 1955

...

limited,
•

might

]qc-0

not

nijfhr#3alr

Korea.'Our military

and

strong
—

establish-

from cumulating into a - general
plant
°of
downturn.
tial and other
buildings and of
The possibility of some levelconsumer durable
goods is much
ling off in the broad indicators of
larger today than in mid-1950
economic activity should not be
However, there is always the
ruled out.
In
fact, some down- danger that what
started out as

quently, the prospect of some
easing in automobile production, turn for a month or
two would
and, possibly, in residential build- be consistent with
historical ex-

^nd^quiDment

limited engagement
may assume
scope; to guard against

broader

Number 5422

181

Volume

increase in
In recent months, price adwould ^rob- vances have b^en recorded iiy a
ably be regarded as prudent. Also, wide list of :$hetbls and inetal
psychological factors may become products, in machinery and
significant; confronted with re- lumber, and other commodities. If
newed
fightingyboth consumers the business pattern develops as
and
businessmen
would
be here anticipated, further price adtempted to step up their buying, vances for industrial products apcreatiog" the prospect of upward pear probable,-and the wholesale
pressures on prices and a possi- commodity price index may show
bUity
of
another
inflationary a small increase for the year,
Spiral, especially as prices of in- However, barring war scares or a
dustrial commodities have already "boom"
psychology,
price
adbeen advancing in recent months, vances in 1955 are not likely to
The extent of such an inflationary become sharp or general.
spiral, should events take this
Interest Rates—Consistent with
course, would presumably depend
the toregoing estimate of business
upon the
course of military de- prospects is the expectation that
velopments, upon action with re- upward
pressure
upon
interest
gard to price and wage control, rates will continue. Requirements
and
upon
the effectiveness of for credit, both long- and short-

this contingency, some
the defense program

credit

restrictive
would

certainly

(1855)

The Commercial and Financial Chronicle

policies, which
be
promptly

term, are likely to continue strong,
In particular, further ' increases
can be anticipated in consumer
and in mortgage debt in 1955. The
credit authorities will probably

that

wish to maintain reasonably firm
conditions in the money market,
Should the pace of recovery accelerate or come to be characterized by "boom" or speculative

Continued

froni

conditions, a more restrictive
credit policy would be in order,
However, the record of past years
justifies the hope that the attitude
of cautious rather than all-out
optimism that has characterized
the thinking of bankers, businessmen and the public in the postwar years will continue and that
speculative excesses can be
avoided,

Private

in the closing months of 1954
represents not a temporary in¬

gan

.......

which

market

invest-

favorable

was

Decentralization
This is

Activity

prog/|p. As we

of the
is that planning and thinking have

has
been
both
vigorous
and
widespread.
The
1953-54
downturn
of industrial
ness

In 1945 when there was a tend-

recovery

'th

otheil

wordssa

wiJj

cyclical swing

American economy from the car-

telized or socialized systems of
other nations. The change in the

sectors,

role of

private industry, contem-

plated by the 1954 Act, is a recognition tnat this principle should

levelling off, or even sporadic de-

applied in the atomic field.

•

clines, in some of the indicators
of aggregate economic activity is
a
reasonable
expectation.
The

that it would be un-

sure

realistic

formation

plateau or sag in activity, how—
ever, is likely to be no more than
a
temporary
interruption of a

stimulate

rising trend, and may be followed
by further increases in activity,
possibly starting in the fall of the
year. The second half of 1955 is
likely to show increases in consumer
spending, in business

have

program

pVPrPiaP

gram

security
-

narticioa—

widesnread

participants
would not
In adversfeffect~proand

tion,
fn

that an indesigned to

suggest

enable

initiativp

maximum

guaranteeing

with

period o£ time j believe

th/t

tQ preserve or ;n_

,£ad

our

is t0 rely

the

risk will be that

some

Let me make clear that I am not
suggesting that secrecy considerations cm^r^hould be disregarded,
What I am urging is that the new
Act calls for a change m the relatlve weights to be accorded to the
conflicting considerations of secrecy and availability of information. I would like to suggest a
number of concrete steps for your

;

consideration.
RPrftmniPmiatinns

Information

^rpafpr the

donfe to "lake unclassified infor-

information

mation readily accessible, to make
"

—

what is avail-

/•sin Tideral Government outlaws
BesDitei'some

wAif.

as
uncertainty

follows logically

fr°f .the decisions

I. know that a lot hasr already

Participation incorporated.mtsfithe gy;

e"?I"

has. for an aura of mystery
so long been sur^

Cfna.any people continue

in a confidehce^jl^'poteiitiali-;■
no useful^ informabuilding and construction is likely ties oFAmeri^.:fea®wkry.
13 available. I feel that we
to
remain
near
current
high on the belief that the
^»Id well intensify A
our efforts a/4
to
*• l»*
iLli
il of
which
must
be
declassified, or publish and circulate unclassified
levels.
down-graded " into less "secure" information, to compile and ar"Output
Recent developments
classifications," will produce range it in forms which make it
confirm - eaiiier
judgments that
:
greater advances by American in- accessible and useful to those who
gross vnatioh^j product is likely to
dustryf than the increased "leak- might be interested, and above all,
balance

1955

least, private

—

■

—

se&a

new

record in

1955. An in-

produce
I submit
lished in 1953 may
justified
For the Federal Reserve index of
by the past performance record of
industrial production, a 1955 aver- American industry._
crease

of 2%

from the pre<> age" of information will
billion estab^; behind the Iron Curtain.
be anticipated.*-that this belief is amply

vious record of $365

age

to publicize its existence. I would
like to see the Commission pressing to get before the general pubhe as much information as can be
released under security rules,

somewhat
Furthermore, any evaluation of
Secondly, I believe that a great
reasonable guess security standards must take into deal
of
information
presently

around 135, or even

higher, seems a
at the present time.

account the extent of atomic work

classified

can

now

safely

be de-

*n foreign countries, friendly as classified. It seems to me that this
gate index of wholesale prices has wel1 as unfriendly. If any restric- is consistent with the new declasdisplayed
remarkable
stability tions are maintained over infor- sification standard, set forth in
during the past two years; price mation which is available in other Section 142(a) of the 1954 Act.
weakness
in
1954 was confined countries, the- result of such re- I refer to the concept of publicaalmost entirely to farm products, strictions.^witt • be
to handicap tion of information insofar as it
while industrial commodities re- American business in the race for can be done "without undue risk
mained substantially stable until atomic leadership. The rapid ex- to the common defense and selate in the year.
pansion of foreign atomic activi- curity." We "certainly recognize
Comodity Prices

The aggre-

libraries

exercise

kind

the

respon¬

to exercise over who is
to

cess

ten materials.

existing

facilities

-The

guidance of individuals
possessing extensive experience.

"desirable"

the

obtain

merely to give

it?

come

security clearances to-more peo¬
ple. It is also necessary that there

question

be greater freedom in

the

can

the

way

used.

licensing

the

into

In other words: must the
Commission insist on the right to
evaluate the merits of a project

before deciding

Greater Freedom

information

whether the

process.

advice and

It is not enough

issue

crucial

Commission, in fulfilling its obli¬

gation, must introduce its own
laboratories conceptions of what is "practical"

AEC
and

central

planning role in the development
of
the
atomic
energy
industry.

interested

grant

licensees

effect

retain

Companies present¬
as well

companies

The

guidance.

vise the operations of

ly engaged in atomic work
new

little in the way of

detailed

withhold licenses and to super¬

to writ¬

access

of th£ Act

very

AEC could use its power to

that to provide

mere

by the partici¬

language

has

specific,

AEC

ards provide

ac¬

plants.

knowledge

necessary

needed than

providing

and

people

clear to

seems

the

for

permitted

broad discre¬
tion. The statutory licensing stand¬

formal procedure should

established

the

Under
the

system is minimized.
Fifth,

re¬

pants?

the

categorization of information ac¬
cess
associated
with
a
security

its

into the atomic business,

enter

and what is done

center

that

activities

discharging

provisions of the Act, how much

properly

information

organized

control is the Commission required

of classified informa¬
an

the

control

sponsibilities under the licensing

infor¬

and

where

centers

should

the

Scien¬

tific progress is never very rapid
when work has to be carried on

whether to license

•

...

'•

back here to the same

discussed in relation to

adequacy of information: will

initiative for atomic development,
centralized

Either

individualized?

liberal

restrictive

opportunity to approach can be adopted. By a
exchange ideas with others, even restrictive approach I mean grant¬

The

isolation.

with people

working in relatively

unconnected lines, frequently leads
to

rewarding kind of cross

very

fertilization of ideas.

security restrictions.

-'•^. governments,-and probably: ferns to me

cleared people can get access to a

and

;

■

aware

•.

dustry

the creation of

urge

study

atomic information
Recommeildatlons on Information
1First, I think that more can be
thp

apply

mllPh

frpp pntPrnricp WQtPm

industry", and

.initiative which has been

end congress must choose entering atomic work should be
tn rplv fnr our ^Prnritv
afforded greater opportunities' to
secr
and hQW much Qn the

for

^ictrihntpd

Fourth,
one

likely to continue through
y0955 and into 1956. In view of
^.prospective cutbacks in automo'^'bile production and some easing

...

^.appears

industrial

country

In
the

tQ do g(>,

short

other

years.

regardless of
our secrecy policy, catch up with
. technical matters in a very

yidualized, not centralized. Itthe
is
this which has distinguished

three

of participation

to enable the members of that in¬

licensees.

Such

about

the point I

leave'with you: To

base

in the atomic energy

and

tion.

the

facilities.

range

bomb

broaden

who plan, design, and operate AEC

wide

Assuming that the international
does not change signifi.

bombrSur

emphasize

This prin¬ sible for America's industrial prog- *
all inter¬ ress, greater freedom of informa¬
ested
parties
as,
for
example, tion is an absolute necessity.
architects, engineers, banks, and
The Licensing Power
insurance companies.
As a gen¬
An
eral
equally basic problem is
proposition I believe such
people should have access at least raised by the scope of the Com¬
mission's power to grant licenses
equal to that afforded contractors

mation

Russians to

places and positions have had thev pecujjar advantages, namely inP.ower to plan and to make deci- cenyve and individual enterprise,
sions.
Initiative has
been
indiof the Amerieah economic system.

situation

cantly, this broad

Let

person or the firm
contractual rela¬

with the AEC.

should

ciple

Dr.

crease

has been largely re¬
traced, and output is above 1954
lows in every major industry.
,

ato^ic

f th

bim

"?fv,ei
een centralized.
Many tbe best
different peoplei m many different

production

t of

the

Russians would be able to build a

see it,
i16 reys
e suc<ress
American
|conomic system

evident that bust-

has

industry that
our place.

certain that this, too,

would like to

who meets
regardless

any person

requirements

whether the

atomic

would like to make

the 1954 Act.

and

should

are:

is the kind of industry which your
Committee envisioned in drafting

to such informa¬

clearances

The larger

the faster atomic progress will be.
It is in such a competitive and

downgrading

the

access

Langmuir predicted to the prede¬
cessors of this Committee that the

of Decisions

point jof the most cru¬
importance fp the success of

cial

Prospective Pattern of Business
.,

of the scientific and
technical capacity of foreign
countries.
estimation

build

the atomic

the tendency to consider secrecy
and security as one and the same
js predicated on a serious under-

not be

system.

Dangers of Secrecy

able to exercise any more imtia- y
t
than lt dld under the Contract

ing Treasury deficit.

industry will

frustrated:

long-term borrowings; the Hous¬
ing Act of 1954. stimulated resi¬
dential building. At the same time,
recovery
developed without the
stimulation of a large and grow¬

declassification in this coun-

in this connection I believe that

of the 1954 Act may be

purpose

an
investment

the

These

»brqad^^|i2S!would seem to call for exten- tionship

and

fostered

policy

environment

tion.

tioh-

ernment contracts;: It is almost
axiomatic thaUtbesuccess of fupublic sentiment remained con- ture; planning indirectly proporfident, and Government policies tional to the amqt$it of informahelped
create
a
favorable en- tion available. " Without adequate
vironment. Tax reductions early information industry cannot be
in 1954 helped sustain disposable expected to shogpfeal initiative,
personal income and gave some Without adequate information the
credit

for

involved

work, it clearly

competition.

enabled to exercise real initiative

review, collate,

classification

The General

the number of companies that

Third, to the fullest extent feas¬

of
ires

progressive

ances

favorable

added incentives to capital

value

I feel quite

suggest

will

business

possible.

access

prospered in a competitive econ¬
omy.
We deeply believe in the

the public and in¬
complete story in de¬

information

which

We hope that entry

atomic
as

dustry

Company
being "an in¬

Electric Company has grown and

effective

unless

job

taken to

the

free

classified fields.

security

business

Business

climate.

economic

the

field

and present to

granted to

is largely

initiative operating in a

into

promoting the interests

means are

the

Electric

interest-in

is restricted.

Declas¬

in basic classification manuals will
not

General

sider" in

companies

ible,

access to mf<
and private needed to perform specific gov- try.

the result of business

has

previously without
atomic experience. This, however,
would take major effort. Changes

Enfeipiise

terruption in a continuing down¬
ward movement in the economy
but rather a basic cyclical change

"activity-;*:The recovery

and of

bearing

Encouraging Competition
The

sifying information to the fullest
extent feasible provides the most
effective means of hastening prog¬
ress

have

the granting of appropriate clear¬

The economic recovery that be¬

ment;

industry participation.

will

con¬

Congressional policy relating

new

in direction of aggregate

balancing of

risk" should take into account the

Summary and Conclusions
,

that

prospects of its ventures.

would

the

cannot

siderations in determining "undue

page

but

that

stress

in¬
de¬

popular items.

John
Smith

associated
Pont

California

west

'•

John

Figueroa
Street.
was
formerly with

4-2; Pacific Coast 0 to +4; South -f-3 to -f7; Midwest and South¬

+4 to +8 and Northwest +6 to -f-10.

Matlock,

and

become

Francis

fhe

CALIF.—Ar¬

ANGELES,

South

the

Joins F. I. du Pont Staff

by Dun & Bradstreet,'Inc., to be 1 to 5% above a year ago.

had

Hornblower

with

Weeks, and prior to that was with
Janney & Co., as a registered rep¬
resentative.

to post-holiday pro¬

The total dollar volume of retail trade in the week
mated

Slightly Above Year Ago

shopping and widespread

this

Hemphill.

joined the firm

representative

motions in the period ended on Wednesday of last week lifted re¬
tail sales slightly above the level of the similar week in 1954.

week

—

Pa.

previous.

April 1

Pa.

Noyes & Co., members of the NewYork
Stock
Exchange, has announced that Louis Cunningham
has

Sales

Hemphill, Noyes

ALTOONA,

deduction*

income

before

$39,345,000.

week.

shipment.

revenues

was

and

reported total operating
$198,676,000 and gross

company

com¬

income

and

Idl

but not in¬

cluding, Philadelphia. For the 12
months ended Feb. 28, 1955 the

were

prices

1,000,000

population of about
an
area
adjacent to,

fairly steady reflecting further efforts by
Brazil and other producing countries to help stabilize the market.

Spot cotton

the

March

at prices

Philadelphia

declined

cocoa

during

ending

period

and thereafter

1960

after March 31,

final prices slightly higher than a week
A somewhat firmer London market and some trade buying
stocks

redeemable

are

redeemed

decreasing to the principal amount

mixed .with

were

bonds

new

105%

five-year

steadying influences. Warehouse
slightly to 161,392 bags, from 163,246
pared with 106,923 bags a year ago.

year

Business Failures Declined the Past Week But Exceeded

for

::Y V YV'Y

were

trucks.
and

ex¬

proximately

Bookings of Spring wheat bakery flour showed considerable
improvement last week as some mills granted moderate price

among

(revised) in the
total of cars and

19$5„

estimated at $312-

are

electric

program

concessions and offered protection against a price upturn. Buying
of other flours remained slow although shipping directions on

industry for the latest week ended April 15,
"Ward's Automotive Reports," assembled an

cars,

sponding week last

for

balance

Daily average purchases on the Chicago Board of Trade
34,600.000 bushels against 42,100,000 tne previous week
and 52,700,000 a year ago.

some

Output Advanced 5%

Above the Preceding Week

1983

for the five-year period
1955-1959, of which $250,000,W

eral

Y'Y Y

due

about June 1,

000,000

totalled

While

U. S. Automotive

bonds
or

penditures

sharply.

sponding week in 1953.

The automobile

the corresponding date a year

for

37/s%

Regional estimates varied from the corresponding 1954 levels by

for the week ended April 9, 1955, totaled 663,462
increase of 56,672 cars, or 9.3% above the corresponding

Loadings
cars,

April 12,

will

partly

Y The company's construction

867,300,000 bushels.

0.7%

preceding week, according to the Association of Amer¬
'

bushels

Consumers

freight for the week ended April 9, 1955,
continuation of labor trouble on several

Southern

the

Railroads.

ican

Gain of 0.7% Above Week Before

revenue

\-:r*"'•

790,700,000

Easter

Loadings Continued to Be Affected by Labor Trouble
a

price per pound
and its chief func¬

Winter wheat yield at 662,209,000 bushels,

years

1953.

But Showed

275.26

tim.

this

kwh., it increased 1,257,000,000 kwh., or 15.1% above the com¬
parable 1954 week and 1,489,000,000 kwh. over the like week in

Car

sale

the company
the

105.3%

the

The April report of the Crop Reporting' Board of the Depart¬
ment of Agriculture issued at the close of
trading on Monday put

energy

declined

when

week,

closed

:YY, Y'

ago.

ended

output

W&s

construction

gage

total

the

yicjM

sale

program and
entire
$30,009,09$
issue of first and refunding mort¬

Slight Gain Over the Prior Week

week earlier and with 276.53

redeem

wholesale commodity price index, compiled by
Bradstreet, Inc., held at a slightly higher level last week.

Domestic

Electric Institute.

week's

its

daily

small lots for prompt and nearby

distributed by the electric
light and power industry for the week ended Saturday, April 16,
1955, was estimated at 9,602,000,000 kwh., according to the Edison
This

used

The issue

competitive
" Y

Proceeds

April 18.

"YY" Y: Y **•''"-'YY —^ Y;. Y.

sum

mortgage

interest

accrued

awarded

prompted largely by scattered liqui¬
dation and hedging which met with little trade support.

Trend the Past Week

the

A late downward

Electric Output Continues Downward

The

represents the

refunding

3.12% to maturity.1

Wholesale Commodity Price Index Registered a

capacity of

of Jan. 1, 1954.

and

y;Y;V'%' /''

cocoa

week ago.

annual capacity of 125,828,310 tons

comparable
The

average

castings

placed at 1,636,000 tons or 68.6%.

was

18,

industry's ingot production rate for the weeks in 1955 is

For the

duction

April

April 5th

foodstuffs and meats in general use

raw

uses.

The

index

and

bonds, 3i78% series due 1985. The
bonds were priced
at 100.09$%

from the comparable year-ago

' ''

April-1J-

offered for public sale $50,000,090
of Philadelphia Electric Co. new-

against 18 in tne pre¬

underwriting group headed

by White, Weld & Co.

suc¬

tion is to show the general trend of food prices at the wholesale
level. YYY.Y Y:,n ■""Y;YY/VYi}'.y\;;Y.

con¬

that the ingot

ter and currants.

weeks.

two

exceeded

„

and presently

poured 2,304,680

•

\• Y;-,

can be produced at a 96% rate.
capacity in the week ended April 17, the industry
net tons of steel the highest since the record
2,324,000 tons in 1953.
Y- In registering 95.5% in the week ended April 17, the rate
rose half a point over the level that prevailed in the preceding

and

businesses

Aiding in the week's rise were higher wholesale costs for
flour, oats, barley, hams, bellies, lard, cottonseed oil, cocoa, steers,
hogs and lambs. Lower in price were wheat, corn, rye, beef, but¬

2,324,000

29, 1953, during the Korean

11,0%

To turn out the above tonnage for that week in 1953, the steel

Eleven

downward

index represents a drop of

country without

<(yYY _Y" YY: Y; Y-YY'''-'Y;

•

the

equal

$100,000

figure of $7.35.-;

from

ago.

Offers Utility Bonds

last

174

movement, the Dun & Bradstreet
wholesale food price index advanced to $6.54 on April
12, from
the 17-month low of $6.49 recorded the week before. The current

That, it notes, is being demonstrated now. Steel ingot out¬
put in the week ended April 17 was 95.5% of capacity. Another
a

year

above

Low of Week Ended

shooting war, says "Steel," the weekly magazine of metalworking, the current week. ~

point would give

liabilities

Reversing its

half

edged

recorded

from

Meanwhile, small

first

net tons set in the week ended March

with

166

Wholesale Food, Price Index Reacts From 17 Month

Capacity This Week
We

size

vious week.'

Point Higher at 95.5% of

this

dipped

comparable week of 1954.

under -$5,000

concentrated among failures with lia¬

the week

March

Steel Output Set 0.9

was

more^whicli

168 in the

casualties,
June 3.

(1857)

to April 9,

1955 the index

Street.

Alex Goldstein

Alex

Harry

Goldstein,

Lipman

A r»ri1

partner

Co.

passed

(1858)

The Commercial and Financial Chronicle

Fund

Marketing
Example

Two Oil

niques that may well be copied
by other consumer products with
low promotion budgets.

Eugene J. Habas, Vice-President
Hugh W. Long and Company,
Inc., has called attention to the
of

his

funds which

marketing

limited

are

advertising to that of
ucts

which

cannot

afford

their

prod¬

new

Doubles Fund

Savings Plan List

Socony-Vacuum

Marketing
mutual
funds
is
bringing about a revolution in the
integration of merchandising tech¬

similarity

Equitable Offering

Companies

Add National's Fund

For Others

rising

for

their

Employees
Savings Plans, according to E.
Wain Hare, Vice-President of Na¬
tional Securities & Research

poration.

joins

National

Stock

Income

Series

the

had qualified as ac¬
investments under
both

New York

Fund

this

past week that

advertising

law to
"As

limited

brief descriptive phrase.

result,"

marketing

staff

said, "our
place its
development of

has

emphasis on the
ingenious merchandising methods
at the dealer level.

The most im¬

portant of these is a constant flow
of new promotion ideas and con¬

literature.

sumer

"Advertising

for

building the fund name only,"
Habas stated, "while the brunt of
the

product marketing
point of sale."

Hugh

W.
underwrites

Long
four

is at the

and

largest

which

Funda¬

mental Investors, Inc. Net assets
for this one Fund alone grew more

~~j

! National

than

$100

million

one

year.

have

than

$250 million
their money in the Fund.
more

Newton I.

Fundamental

Investors, for ex¬
ample, is sold through about 2,000
investment firms, the retailers for
the

industry. During
Long
will
Company

year,

send

two million

over

investing

Though

the

pieces of

rigid limita¬

are

the

contents

nancing

mutual fund, the primary objec¬
which ia to provide an
a

diversified

Some

current

the

dealers

dealer

involved.

Prospectus and other
may
be obtained
from your investment dealer or:
information

most

relations

was

important

their

Field

marketing

sales

decided

representatives make regular calls

provide

program.

dealers

assisting

them

ing the sales points in the

Corporation

literature.

Established 1930

with

Broadway,

New York 5,

UU bi

New York

The

organization

home

also

£7/ie

ucts.
uals

PUTNAM
FUND

50 Scate

Street, Boston

differs

the

trust

needed of anyone

DELAWARE

ended
or

that date, from
to

$16.94

handling

FUND'S

$9,317,192,

$27,125,277,

confidence

52%

March

$21.30

money.

net

31,
a

1955

share,

to
on

$17,808,085, equal

share,

March

31,

1954.

NET ASSETS

Inc.

•

dir^qtbrs

fund's

quarter
a

funds

group

March

the

United

Funds,

reached

Inc.
new

of $212,715,050, an increase
$82,366,043 over a year ago and
up $5,327,310 from Dec. 31, 1954,
K.

Reed, President,

244

earlier.

year

tive Fund shares aggregated $55,-

861,933 against $26,536,553

Fund

United

Science

amounted

$25,-

160,484 against $16,674,319.
Net assets of United Continental

Fund

$15,145,680

were

Moreover, Steers
can

6Farm

contribute to

by
Chemical

•

stock dividend of

shareholders

close of business

record

April

29, 1955.
In

two-for-one

split,

this dividend will give each share¬

holder

one

each share
ed

that

tional

additional

now

held.

will
on

It is expect¬

mailed

May 26, 1955.

fertilizers

the

farm"

which, despite

over-capacity,
continuing long-term

fertilizer

industry,

according

analysis by the investment
department of Cal¬

management
vin Bullock.

the

analysis

states,

"American

agriculture Had aoout
the point where future
population growth had to be met

reached

either by

bringing

cultivation

—

yields."

land into

new

r difficult

process—or

and

ex¬

by increasing

The

Diversified Growth Stock
Fund, Inc.

LOCAL

THESE

Chicago

tne

and

of
in¬

since

and, "one farm worker

Incorporated

Westminster

Parser, Elizabeth 3, }Jew Jersey

care

with

persons

now

com¬

1940."

FUNDS

DEALER.

The rapid development of nitro¬

Hugh w. long and company

Los Angeles
San Francisco

washington 7, D. C.

effectiveness
fertilizers

have improved farm effi¬
This has resulted in a
drop in par capita acreage re¬
quirements
from
2.03
to
1.86

pared
MUTUAL

INVESTMENT

Cleveland

1033 thirtieth
street, n. w.

use

ciency.

takes

YOUR

against

$7,433,936. in

Television-Electronics Fund

re¬

ported today gross sales of shares
in

the

dar

first

quarter of the

1955

year

805,699

amounted

last

calen¬

$17,-

with

compared

$1,767,052

the

sales

period

year.

The

•.

fund's

March

31,

total

last,

equal to $11.30

share compared

$7.80

date

same

assets

$92,624,483,

were

$36,491,226,

the

net

share,

year ago.

TOTAL NET assets of Texas Fund
on Feb. 28 were
$21,879,824, com¬

pared with $16,614,077
1954

and

on Aug. 31,
$13,865,950 at the

with

of February

end

Net
Feb.

asset

28,

1955

ago.

year

value

per

$7.19, against
$6.06 on Aug. 31, 1954, and $5.47
on Feb.
28, 1954...
Included

was

the

total

Feb.

$6,526,212
gains.

net

asset

1955

28,

was

unrealized

.capital

WHITEHALL FUND, INC. reports
that the asset value of each of its
shares reached $23.71

1955,
1954.

The

figure

gain of 23%

over

March 31,
Dec. 31,

from $22.80

represented

March 31, 1954,

taking into account the December

Continued

page

Of the three elements,

synthetically
form

nitrogen,

produced

ammonia

from

the

natural

gas in a process developed
World War II, has proved

gen,
as

ity

phosphorous

and

fertilizers is based

these

potassium

(elements,

the abil¬

when

in¬

troduced into the soil, to replenish
their natural depletion and, when
added

crease

crop

most

spectacular.

during
to

From

pro¬

of 419,000
tons in 1940
industry's capacity at yearend 1954 had risen to 2,800,000
tons, some 700,000 tons in excess

the

probable

This

demand

June 30,

year enaed

the

plus

overproduction

growing

for

the

1SL>5.

rate

competition in
threatens a sizable

the

industry
surplus capacity, the study notes,
witn

consequent

marked

price

"period

weakness."

serves,

"the

will

have

excellent

prospects

This

effect

long-term

greater
yields.

rate,

in¬

growth

of nitrogen."

Overcapacity

phosphorous
potentially
serious as in the synthetic nitro¬
gen industry since no major in¬
crease
in phosphate
facilities- is
"does

not

expected

appear

the

near

future

least," the study points out.
Potassium continues in

mechanization

acres

companies participating

DEVELOPMENF SECURITIES CO.

income."

combined

farm

variety of

GFT THE FACTS AND FREE
PROSPECTUS

postwar

1940,

AVAILABLE

sales

amounted

condition, however, tne study ob¬

and

war

creased

FROM

Total

year.

funds

the 1954 quarter.

1940,

of greater per capita con¬
sumption made possible by higher

Manhattan Bond Fund, Inc.

PROSPECTUSES

period.

the

duction

reason

designed to provide

resulting

this

four

$13,699,686,

companying period of growth for

personal

from Atomic Science.

the

Diversified Investment Fund, Inc.

managed investment

increase in crop yields ana an ac¬

periods
which increased not only because
of population growth, but also
by

Inc.

$5,717,874,

have

15-year "revolu¬

culture to increase its crop yields
in order to meet the demand of

Fundamental Investors, Inc.

ATOMIC DEVELOPMENT

volume,

Revolution'

for

certificates for the addi¬

points to

the

effect

1954

same

Analyzed
By Calvin Bullock

con¬

current problems of

the

Con¬

United
Accumulative Fund sales showed
the largest gain,
rising from $2,728,-383 in the 1954 quarter to

Total sales for the first quarter

have declared

United

a year

earlier.
assets

the

dollar

figure

Net assets of United Accumula¬

Net

was

Fund,
which
reported
$3,369,410, against $579,-

an¬

nounced.

tion

207

NET ASSETS of the four mutual

Cameron

growth

sales

with

THE DIRECTORS of Boston Fund

100%,

est

tinental

coming far faster

MUTUAL FUND,

in activities

2,855,570

The accelerated development of
chemical fertilizers "enabled
agri¬

with

compared

the largest ever for
any like
period, Mr. Reed said. The sharp¬
were

^De¬

MUTUAL FUND.

31,
1955
were
highest ever re¬

year ago.

feel that

shareholders

ATOMIC SCIENCE

March

Chemical Fund,

ported at the end of a quarter,
according to the company's quar¬
terly report.
The
assets
were
equal to $27.64 per share and

crop

com¬

development against $4,257,891.

through

$81,751,690, the

pensive

invest-

16,764,073

with $311,265,028, or $21.22
a
share on the 14,667,330 shares
outstanding on March 31, 1954.

brought about

assets

in the 12

the

pares

diversified

energy
development
providing needed financing.

professional

and

atomic

prod¬

individ¬

1955

$419,842,276, equal to

anticipated," he said,
an outstanding
opportunity exists at

relationship with the clients which

months
Putnam Fund Distributors. Inc.

distributors

must maintain

reflects

rose

^Jjodton

The

funds

divided

are

"and

field

consumer

amounted to

$25.04

quarter

raw

view of the rapid

this time."

mutual

first

high

underwriting to
investment reservoir

tinued, the fund

Selling

the

shares then outstanding. Tr.is

the

investment

visits to dealers.

greatly from other

than anyone

sales

makes

the

velopments

Fund's

office

are

of peacetime atomic energy.

local sales problems and
explain¬

Research
120

Steers said the

National Securities &
I

investments

power; and 11.2%
atomic activities.

the

one

aspects

stock

services; 4.8% in Atomic Energy
Commission operating contractors;
9%
in
application
of
atomic

the rising trend in living

instruments;
6.4%
in
suppliers of special equipment and

Mr. Habas stated that
company-

fund

radiation

which

the

materials,
Net
assets
of
United
Income
including
uranium,
beryllium,
Fund shares March 31 were
$116,lithium, thorium and zirconium;
8.3% in radioactive materials and 546,955, compared with $82,880,-

has

piece based

Delmonico

meet

the

ventures

new

follows: 47.5% in

costs.

yield and

reasonable expectance of its continuance with regard to the risk

Present

group

of bonds, preferred and common
stocks selected because of their

relatively high

with

promotion

Total net assets

retirement

1834

The fund currently owns securi¬
ties of more than 90 companies.

plans, creation
estates, building funds for col¬
lege educations for the youngsters.

invested

said

field, either
debenture purchase.

Steers

last.

outstanding at the end of the first

will

from

stocks of established

common

added
about $100 million in resources in
the 12 months ended March
31,

the

proceeds

atomic

sales literature, the restric¬
tions only encourage greater origi¬

favorite

funds

FUND

Although the bulk

the

companies,

fund

the

WELLINGTON

compared with net assets of $60,122,198, equal to $21.05 per share
on March
31, 1954. The fund had
2,957,176 shares of capital stock

would consider sharing in the fi¬

there

placed

firms.

Steers, Jr., President

underwriting.

the

sales literature.

tions

associated

of the fund, said its directors and
advisers have completed plans for

spells out the need for investment

tive of

investment in

150

dicate.

Currently 60,000 shareholders

been

Income Scries

$37,000,000,

were suspended during the
underwriting except through
members of the underwriting syn¬

typical pieces of literature

through

net-asset

Sales

Company
nality of sales approaches.
mutual funds,
of the

Investing for Income

Total

38,000 stockholders.

are

than

outline

increased

value

30-day underwriting, com¬
pleted Friday, was managed by
Equitable
Securities
Corp.
and

dealers

be counted

can

sale

The

Mr. Habas told members of the
of

and

asset

exceeds

now

and there

plans.

the

net

$16,000,000.

value

media costs.

Industrial Advertising Association

fund's

than

which

went

underwriting added 17,000

shareholders

new

and

Fund

Monday, after the successful com¬
pletion
of
an
underwriting of
1,250,000 shares of stock.
The

previously
cepted

Mutual

now

Series

By ROBERT R. RICH

Shares of the Atomic Develop¬
ment

Cor¬

Speculative Series

Mutual Funds

Size in Month

Oil

Company
and American Oil
Company have
included National Speculative Se¬
ries among their list of
eligible
investments

Thursday, April 21,1955

...

sound

supply position and recent discov¬
eries

"have

domestic

uncovered

potash

sufficient

reserves

last

about 100 years at current rates of

proauction," accoraing to the pub¬
lication.
The industry, however,
is subject to some potential
jeop¬
ardy Irom foreign imports.
Population growth has finally
caught up with our land resources,
and, the study concludes, despite
overcapacity
in
nitrogen
and
potassium for the next several
years,

the

long-term

fertilizers "promises

prospect

to make any

current condition of supply a tem¬
porary
phase
growth."

the

industry's

olume

181

Number 5422

ontinued

from

The Commercial and Financial Chronicle

standable and

EC Powers Limited to

Preserving
Unmanipnlated Market

Free and

the effective operation of

These

the

curities laws.

prohibitions

the individual

operate

organization like

other legal prohibitions. Their

any

violation may lead to administra¬
tive

Requirements for Disclosure

Registrations

issues

new

curities, of securities for listing
i

national securities exchange,

investment

companies, of public
ility holding companies, of the
changes themselves, of brokers
d dealers, of investment adviss, and of national securities asciations, all involve the making
disclosures designed to provide
formation to the public invesr.
These registration statements
e supplemented
by periodic rerts.

discipline by the Commission
in some cases, such as revocation
of the registration of a broker or
dealer

disclosure, as are reon security holdings
by offidirectors, and large (more
10% of an outstanding class)

rts
rs,
an

ckholders.

ockholder, the underwriter, the
oker, the dealer, the officer or
rector, the exchange or the asciation; and the resnonsibility,
th

criminal

and

civil,

for

the

of the disclosure is his.
Commission's duty in re¬
of the disclosure
require-

curacy

The
ject

ents is administrative. The Com-

ission

does

not

audit

the

ac-

cf disclosure, and, indeed

racy

is unlawful to
represent to a
ospective purchaser of a securi-

that t

Commission has passed

the

accuracy

statement

complete¬

or
or

report filed

ith it. The Commission examines
ich material to

cient
sts

if it is insuf-

see

face.

so,

sug-

changes, and failing to get
it

lem,
ve

its

may

exercise administra-

discipline

for

court

injunction.

Requirements
the

^present
curities

into the Fed-

or go

for

basic

laws.

disclosure

policy of the

The

existence of

requirements has

rese

ailable

information

publicly

increased
most

held

corporations,
d has improved standards, acunting and otherwise, for cororate reporting. The disclosures
re

made for the benefit of inves¬

and,

basically, it is the rejonsibility of the investors them-

e
re
i

business who advise

them, to

that the benefits from disclosmade

are

practice

available

well

and

used

in theory.

III

the

Acts

Each

the

several

statutes

ntains prohibitions. Some prac-

specifically described in the
are forbidden. In other cases

ces,
ws,

forbid

statutes

iolation

practices

of rules and

regulations

diich the Commission may adopt,

there

example,

rohibitions

specific
fraud
and

are

against

lisrepresentation in the offer and
le
of
securities,3 and specific
rohibitions against manipulation
f prices on an
ash

sales,

ther
on

exchange through

matched

orders

specified devices.4 In addithe

prohibitions
gainst manipulation described
bove, there are also provisions
express

making it unlawful to
lative devices

lommission.5

ilization

use

manip-

defined

by the

the

field of sta-

securities

prices

xchanges. activities in contra venion
re

rules

the

Commission

fre¬

unfair

4 See

17(a),

Section

Securities

9(a)(l)-(5),

Act.

Securities

xchange Act.
5 See

Sections

ecuri'ies

(a)(6),
6 See

10(b)

and

15(c)(1),

Exchange
Act.
Cf.
Sections
9(c), 9(d) of that Act.

Section

9(a)(6),

Securities

Ex-

hange Act.

principle of legislative con¬
might be applied in other cir¬

cumstances to institutional adver¬

appeals

by labor unions,
associations, associations
railroads, associations of coop¬
eratives, associations of producers

commodities—such

action,

activities not in

butter

accordance with

just and equita¬

principles of

trade. The

line
il¬

oleomargarine.

strikes

these

that

one

favor

public

meat

are

these

Rather
bids

American

tradi¬

tion and

by the Commission. I am
suggesting that it should. Ad¬
vertising by sellers of securities
is subject to the fraud provisions
of the Securities Act, in some cases

not

the

fraud statutes,
and to
provisions of the laws of
some
states.
Advertising by in¬
vestment advisory
services may
give rise to injunction proceedings
by the Commission. From a prac¬

the Commission's

areas,

involves

rule-making power
drawing such lines.

in the spirit of the First

national

must

securities

recognize

the

tical

standpoint, unless the Com¬
staff
were
vastly en¬
larged, it would not be able to

mission's

when

assumes

and

Exchanges

Registered

Securities Dealers

willful

the
of

fact

that

honest

and

open

the

and

be pun¬
ished criminally. The same is true
of

willful

may

violations

Commission's

under

the

The

Acts.

some

rules

is also authorized to

adopted

Commission
seek

markets, both exchange

over-the-counter, both for
original issue and for trading, de¬
pends upon the application of just

and

equitable principles of trade,
the Congress in the Securities Ex¬

injunc¬

change

Act

tions against persons violating the
Acts or rules, and it has been held

corded

legal

that in

ciations of securities

circumstances

some

ag¬

recognized
status

and

ac¬

securities

exchanges and to registered

asso¬

dealers: The

grieved party may likewise seek
injunction against the violator.

Commission has certain powers of
review over the rules of the ex¬

changes

addition

there

provisions

are

for civil liability, for example,

parties aggrieved by fraud

and

the

over

rules

proceedings

disciplinary

and

the

or by
manipulation,
or
to
parties
to
whom unregistered securities were

National Association of Securities

sold.

have

imposed

granting of legal status to these
organizations is a legislative rec¬

some

violations

the

cases

civil

relations

undertakes

after

vertising
Let

sion

courts

liability

for

when there is

Dealers,

the

Inc.,

registered

one

securities dealers association. The

campaign

savings.
Securities

Commission
ment

sales

has

and

policy

literature

securities

with

investment

Congress

comments

be issued by

the New York Stock
Exchange to guide its members'
of

use

sales

statements

literature.

serve

These

guide

examines
to the

The

literature

The

Commission investigates vio¬

lations,

the courts to

goes

re¬

ognition

that

plished by

and

strain their continuance and refers

tors

violations

Commission

for

Justice

Civil

the

criminal

liabilities

private

of
prosecution.
imposed in

Department
are

litigation

Commission

not

The

party.

accom¬

of investiga¬
which
the

army

inspectors

might

send

but

which it does not have.
I have presented

the sification

which

could

this brief clas¬

the few examples of each in order

Commission
does not
ordinarily to point out that the effective
participate in such private litiga¬ operation of the securities laws is
tion
except when the Commis¬ dependent upon a recognition of
sion's participation is necessary to responsibility by investors, by is¬
protect the public interest or to suers of securities, brokers, deal¬
aid the courts in matters of inter¬ ers, underwriters, exchanges, as¬

pretation of the securities acts.

sociations

securities

and the courts,

well

dealers,
by the

Commission.

Before

to a detailed
discussion of the provisions of the
And Regulatory Powers by the
Securities Exchange Act, I should
Commission
like to comment on two specific
The Securities Exchange Act of
problems which have been raised

The

Exercise

the

created

Administrative

Commission and

numerous

prescribe

certain

can

and

lia¬

powers.

making

duties

create

power, and

criminal

the rules
civil

and

may

liabili¬

passing

at the hearings of this Committee,
one,

the

matter
to

programs

institutional
the

encourage

chase of securities, and

pur¬

the other

the

broadcasting of news about
companies in a manner which ex¬

ties. The rule-making power, for
cites public interest in their secu¬
example, covers the definition of rities.
manipulative practices and prac¬
The government and the busi¬
tices in connection with stabiliza¬
ness
community are confronted
tion of prices of securities. The
With a dilemma when they ap¬
Commission has powers to exempt
praise any program designed to
certain transactions
or
types of
interest the general public in our
transactions from the operation of
capital markets.
Broader public
statutory prohibitions. It has
understanding of how our system
powers to prescribe certain types
of capital formation
operates is
of administrative discipline such
clearly desirable. Thanks in con¬
as delisting of stocks, or denial or
revocation

broker's ,or

er's registration.
tive

powers

the

and

siderable

deal¬

It has investiga¬
may

refer

cases

Department of Justice for

criminal

prosecution

and

statements and
it

determine

reports filed with
whether

their

face such statements meet the dis¬
closure requirements.

efficacy

the

Commis¬

securi¬

the

ties acts, more people have more
reliable information about the

capital markets and the securities
sold therein than

may

seek injunctions. It reviews many

measure

ago.

One

they had 20 years

the

basic

aims

and

accomplishments of the securities
laws
and

is dissemination
financial

business

information

about

corporations whose securities are
traded on exchanges or have been
sold in the

public capital markets.
line between legiti¬

dependent

upon

which

Commission, aided

mately stimulating the interest of
potential investors in our capital

its

the

the wisdom with
by

draw

the

staff,

exercises these broad markets and improperly luring
powers and responsibilities. Rules people into those markets would
must
not
only bgj; theoretically be a difficult legislative feat.
sound

but

they

must** foe under¬

opinion

hearings

that

institu¬

during these
broadcasts which

about

have enticed people into the mar¬
ket.

The

Commission

less

the prohi¬
bitions of the Securities Exchange
Act with respect to tips and ru¬
However,

have

mors

limited

operation and
would
not appear to include a
news report as such.
The inhibi¬
tions of the present securities laws
are

imposed

parties having an

interest in the transaction

paid by such parties.
snonsibility

were

If such

rules

those who undertake, without such

valuable market information pres¬

ing

disseminate

The purpose and
securities acts is to

information,

correct

information, to the public, and if
legislation

curbing

these

each

exchange

are

its members for

inconsistent

re¬

table

with

just

principles of

conduct
equi¬

and

trade.

Infor¬

mation

pertaining to the organiza¬
rules of procedure, trading

tion,
•

practices

and

contained
each

the

matters

application

exchange and is kept current.

Section 19(b) of the Act author¬
izes

Commission

the

alter

supplement the rules of

securities

exchange

subjects.

certain

the

However,

national
statute

contemplates substantial self-reg¬
ulation

not

The

emoowered to

supplement the

exchange

exchanges.

the

Commission
alter

unless

rules of

first

re¬

quests the exchange to

take

exchange

the

broad¬

and

matter

fails to do

the

care

so.

Each exchange re¬

changes

ports

in its rules to the

Commission

practice

and

changes

with

matter

discusses

generally
the

such

Commission's

staff.
There is

ently published.
of the

compliance
members.
The

its

Commission's

enforce

quired to provide for the disciplin¬

re¬

upon

pecuniary interest, to publish in¬
formation, the result might be to
shut off the publication of much

thrust

to agree

those

imposed

registration,

the

and

therewith

concern

concerned.

legislative policies and

expressed

Act

rules

ministered by

anything

comply with the provisions of

the

condition

exchange is required

un¬

provide

public trust ad¬ exemption from full registration.
those organizations. I question whether it is adminis¬
This discharge of the responsibili¬
tratively
feasible or would
be
Criminal
penalties
and
civil ty imposed on the exchanges and legislatively wise to attempt to do
the
NASD
by that trust tran¬ more.
liabilities
are
imposed
by < the
in
practical
importance
courts and not by the Commission. scends
Members of the Committee have
even

statutory provision
for
legal actions by private parties.
express

As
an

also

offering circulars used

Act

volume of transactions.

supplemental

der regulations which

Exchange

be granted to an ex¬
which has a very small

change

secu¬

staff

which may

by the NASD in cooperation with
Commission.

Control

Their

Securities

The

rities of mutual funds is examined
the

and

requires each securities exchange
to register with the Commission
as
a
national securities exchange
or
to
apply for the exemption

provisions of the securities laws.
Supplemental literature used in
the sale of

Members.

indicate what types of sales litera¬
ture may offend
the anti-fraud

connection with

and

changes in Their Administra¬
tion

of re¬

1934

administrative

(1) Laxness by the Securities Ex¬

compa¬

process

problems encountered by the Com¬
mission in carrying out its re¬
sponsibilities under the Act.

statement proposed

Exchange Act with
specific abuses found

by the

state¬

respect

pass on to a discus¬
specific provisions of

the

covering sales of

nies, and is in the
viewing

Exchange

adopted

re¬

now

respect

in¬

advice.

publication

publication either ad¬

the Securities

fluence what people do with their

Theof

maintenance
securities

violations

public

before

censor

view

exchange

obligation

mail

fraud

Amendment. However, an institu¬
tion with the public responsibility

many

routine post-publication exam¬

ination

for

such

groups

the

legal is sometimes hard to draw.

sion's administration, of course, is
Section

trol

collusive

by the Commission provides that

The

similarly forbidden.6

3 See

The

practices, over-reaching, informal

Because

administered

bilities in detail by use of its rule¬

Acts

creep

are

nature

Associations of

And Penalties

Each

gave

Prohibition of Certain Unlawful

the

quently

rities

1934

spe¬

cific plans for purchasing securi¬
ties—would be better regulated
by
self-control
than
by legislation.

tising

subtly

Self-Regulation by National Secu¬

Civil and Criminal Liabilities

lves, and of those in the securies

some

the

The duty to disclose is the duty
the issuer or the
controlling

economy—unre¬

medical

which

abuses

into business transactions

between the unethical and the

proceedings in the
Basically, however, the ef¬
ficacy of these prohibitions, like
all prohibitory laws, depends in
great measure on the disposition
of people to obey the law.

American

that

ble

courts.

advertising for investment

the

lated to specific securities

discover. It must be borne in mind

injunctive

capable of enforce¬
always a questionof
proper
balance between the
..perfect and- the practicable, be¬
tween the reasonably certain and
.the unreasonably rigid. There are
continuing problems of drawing
and revising rules to close loop¬
holes which the ingenious seek to

out

criminal

The requirements for proxy
material are requirefor

him

putting

business),

licitation
ents

(i.e.

tional

ment. There is

page

(1859)

expressly

provision in the Act

giying the Commission

compliance by
exchanges with ex¬
change rules. However, since 1939
to

power

compel

members

casts had the unintended effect of

the

drying

Commission of disciplinary actions

sources

present legitimate news

up
on

securities out of

fear

liability for unintended and

casional
would

inaccuracies,

be far

worse

the

than the

oc¬

cure

dis¬

exchanges

suspend

tration

A few demonstrably bad tips
might have the effect of eliminat¬

tion

ing this

force.

ease.

source of enticement into
the market. At this time and pend¬

ing

continuing study,

I have no
legislation to suggest on that sub¬
ject. I call your attention to the
fact that Section 17(b) of the Se¬
curities Act of 1933 attempted to
deal

only with paid publicity for

It is

fair to point out, however,

institutional

advertising and
only a part of
the general publicity regarding the
broadcasting

markets.

are

the Securities Act of
for

the

and this material,

ing.

receives

7 See
gress,

House

or
an

the

sion's

the

Act

rules
so

far

withdraw the regis¬
exchange for viola¬

the

Commis¬

for failure

en¬

is within its power,

compliance with the Act and rules

by members and issuers of regis¬
has

never

Section

resorted to this power.

authorizes

19(a)(3)

Commission
any

The Commission

securities.

tered

member

lation

of the

sion's

susoend

officer

the
expel

rules,

1933

are

all

public to read,
generally speak¬
advance

Report No.
1st Session, p. 24.

review

85, 73d

Con¬

Act

of a na¬
for vio¬

the Commis¬

and the Commission

has invoked this power on various

occasions with respect to members.
When

News

publications about
securities, advertisements by in¬
vestment
advisory services, and
advertisements by dealers of out¬
standing securities not the subject
of
an
offering registered under
available

advised

tional securities exchange

securities.7

that

have

The Commission has power
under Section 19(a)(1) of the Act
taken.

the

Act

was

passed

1934, the Commission was directed

by Section 19(c) to make an in¬
vestigation of the rules of national
securities exchanges with respect
to

the

classification

members,

the methods of election of officers
and

committees

insure

fair

representation of the membership,
the disciplining of members, and
other matters. The Commission's

Continued

page

(1360)

The Commercial and Financial Chronicle

Continued from page 35

equivalent
to

those with

listed

issues

SEC Powers Limited to

Preserving
Unmanipulated Market

A Free and
report

on the Government of Se¬
curities Exchanges8 indicated that

although
clared

the

Congress

had

(2) Securities
Traded

Provision

de¬

that

exchanges were af¬
fected with a public
interest, their
governing bodies were not selected
cn

particularly responsive
terests
made

public

various

the

customers

in¬
and

recommendations

which

were suggested be
put into
by voluntary action of the
exchanges themselves. Following
a request by the
Commission in

effect

1937, the New York Stock Ex¬
change revised its constitution to
provide for direct representation
of the

public

the Board of Gov¬
increased representa¬

and

ernors

tion of exchange firms
doing busi¬
with the public. The admin¬

ness

istrative structure

simplified

was

and full-time executive staffs
created to carry out, under a

were

paid

president, the administrative func¬
tions

formerly

governors

conducted

sitting

the

committee

bers.

mem

oper¬

statute under which

en¬

forcement of the exchange's rules

primarily the exchange's
responsibility,

own

dependent

!«

upon

the exchange's good faith and dili¬
gence. The Annual Reports of the
Commission
close

the\ Congress

dis¬

rule

changes made by the
exchanges. The discussion

several

with

the

Commission

its

staff

which

customarily precedes
adoption of a change does not

The
makes

the
pre¬

of constant

exchange activi¬
ties in the sense of
having Com¬
mission inspectors
policing activi¬
cf

the

floor.

The

governors

exchange have the responsi¬

bility

for

surveillance

trading
the floor, and the
Commission's

investigators
nection

move

with

in only in

specific

ties

discharging its statutory du¬
under the Securities
Exchange

Act,

the

great

measure

Commission
upon

indications

con¬

investiga¬

tions.

relies

the

that

following

the

national

securities

exchanges, generally
speaking, are being operated in a
manner

consistent with the
public

interest:

(1) The continued maintenance
of

consultation

tween

the

and

liaison

exchanges

be¬

and

the

Commission;
(2)

The

the

national

securities

less

security

the

registered
for

exchange un¬
has first been
Commission

the exchange or is
exempt from registration. The Act
pi

ovides

for

admission

lull

listing and

unlisted

for

trading

The

obligation

the

changes to require of their mem¬
bers compliance with the securi¬
laws

and

rules

the

Com¬

mission;

.(6) The fact that unlawful ac¬
tivity on the floor of an exchange
easily
on

escape the notice of

the floor;

(7)

The disciplinary powers of
exchanges, their exercise by
3be exchanges and the fact that
such
discipline may affect the

the

livelihood

and reputation of the
against whom it is imposed;

(8) The Commission's
inquiries,
as hereinafter
described, into pos¬
sible
manipulations; and
(9) The requirements for, and

trading on a national se¬
exchange shall file annual
and interim reports with the ex¬
change and the Commission. The
curities

annual reports filed with

change and

the

such1 issuers

the

ex¬

Commission

contain

information

with

respect to Changes during the
in the information pre¬
viously reported, and financial

fiscal year

statements

reflecting the issuer's
operations during the fiscal year.
The interim reports disclose to in¬
information

certain

The

with

major events.

Commission's

the

respect

staff

exam¬

applications and

reports
filed. If it appears that the ma¬

terial

filed

fails

material

any

respect to meet the requirements
°f

Jhe Commission's rules, the
staff
normally

comment
forth the

writes

the

letter of

issuer

setting

respects in which the in¬

formation is found to be deficient.

Usually,
cient

these

letters

suffi¬

are

compliance.

secure

few instances the Commission has

resorted to proceedings before the
courts to compel compliance with

applicable requirements. The
Commission

priate

also,

may

initiate

cases,

appro¬

Act to susPend

withdraw the registration of

that

y+uif issuer Comn"ussion finds
•the
the
of such

nas

failed

security

comply

provision of the Act

with

anv

the Com¬

Since

delisting

?U Au securi*y

holders

mat the management

rather

which is

re¬

has

used

cedure sparingly.
der this

section

No.

85,

House
ess,

Repre-

the

Commission

devices

and

contriv¬

sum¬

Since short
which had
late

and the public inter¬
requires. Generally speak¬
ing, when
the Commission has
used this power, it also invokes
so

selling

device

was a

been used to manipu¬

the market, Section

10(a)

the Act makes it unlawful for any

effect

person to

short sale of any

security registered on a national
prevent securities exchange in contraven¬
fraudulent or manipulative prac¬ tion of the Commission's rules and
tices in connection with trading regulations.

vic?J?Piica?itdn of its Bule
X-15C2-2.9
This
is
to
the

security

the exchange

and

ket

during the period when

terial

the over-the-counter

information

believed

available has not
ered

yet
disseminated.

mar¬

ma¬

been gath¬

panies,
the disclosure require¬
ments
provide the investor di¬

rectly, and indirectly through the
activities

this

pro¬

Proceedings

un¬

with

some

statistical

analysts

The

Commission

the

mation

upon

12(f)

securities

are

the

Act

permitted

form

of original
periodic reports

registration and

information

This

creation

the

like!

the

and

contributes

well-informed

investing public and hence in the
long

tends toward the fixing
of realistic market prices.
run

these, Rule X-

10B-2, prohibits any
gaged in distributing

person

en¬

effective

by the Commission,

thorizing

the payment of
compensation in connection
a

distribution of securities.

au¬

unlisted trading
curities

privileges: (1)

actmiutu

prior

securities

some

already

listed

ex¬

cases

where

requirements

information

are

acting as a broker, to effec
transaction on the exchang
except upon a market or a lim¬
ited price order.
Section 11 (b
provides that if under the rule,
and regulations of the Commissior
a

specialist is permitted to act

dealer his

stricted

dealings shall be
far

practicable

a.
re¬

those reasonably necessary to per¬
mit him to maintain a fair an

ently

effect.

The

the

under

Act.

change

exchange's
19(b) of the

1935

the

Commission

including

rules

jectives

certain

adopt

ob¬

Sections

11(a)
and
(b).10 These rules prohibit certain

activities

members

for

their

certain other such activities.

fixed

re¬

rules

the

meet

with

Ex¬

Distribution

involves

alter

Section

exchange

account and

Plan, which
offering at the market

Under Section 10(b) of the Act.
the Commission has adopted Rule
X-10B-5 which makes it unlawful

severely restrict

In 1945 the Commission's Divi¬
sion

floor

considered t

quested every national securities

held

offered

are

encompasse

11(a) »and .(b) o

been

authority to
rules

There

One

The other is called

have

regulation by the exchanges, sub
ject to the Commission's residua

securities

price.

Sections

appropriate subject for self

type .is the
Special Offering Plan in which the
in

problems

Act

made

Trading and Exchanges
study and the Commission

hearing on the problem of
trading. Thereafter the ex¬

changes agreed by exchange rule
to permit floor traders to transact
normal business but

they were not
permitted to initiate trades which
might

cause

In 1952

disorderly market

further study was made,

the purchase or sale of

automatically eliminate either

by the Division.

reliable

information

AT^-Ii5y

Neither

does

abuses.

its

the energy to

significance.

How¬

the disclosure provisions of

ever,
the

un¬

pos-

securities acts

ministration
been

have

and

the

their

incentive

ad¬

Commission
to

cor¬

porate and public business moral¬
ity and have been a medium for

L,-educa^on

investing

public.

Operations

Practices

Aid

and
Such

E?c!?ange Act Prohibits
sales
"matched orders"
or

for the purpose
or

misleading

trading,
a

of creating a false

appearance of active

any security
national securities

intentional

reach

matched

tions in

trading
raises

involving

the

sales"

orders," Section
series

any

transac¬

security registered on a
securities exchange which
or

apparent

the security
depresses

ing omission of

security

for

the

active

which

price

purpose

the

material fact,

(3) to engage in

any act, practice,
of business which oper¬

or course

ates

fraud

as a

deceit upon any

This rule has served

person.

basis for administrative action by
as a basis for

the Commission and
criminal
as

action.

has

also

been

basis for civil recovery

in the courts by persons who have
been induced to sell securities by

Under Section

means.

15(c)(1) of the Act, the Commis¬
sion
has also adopted Rule X15C1-2, which prohibits brokers
and, dealers

from

engaging

and making untrue statements or
misleading omissions of material

defraud, (2) to make
untrue statement or mislead¬

fraudulent, manipulative and de¬
ceptive devices or contrivances

the crude device of "wash
prohibits

any

market

with market prices not

and

exchange (1)
device, scheme or

registered
exchange
tampering

misleading

price,

any

a security,
the mails, interstate
or the facilities of a

securities

fraudulent

Practices.

wash

commerce,

national

used

Manipulative

(3)

use

availability of to employ
provide the investor artifice to

information

determine

the

undisclosed
the

with the wisdom

the; price of

the

facts in connection

chase

or,

sale

the-counter.
these

rules

with the pur¬

of securities
It

over-

principally

under

Sections

by
10(b)

and

15(c)(1) of the Act, and the
provisions of Section 17(a) of the
Securities Act, that manipulation
m

the

over-the-counter

markets

The Commission has also adopted
rules under Section
15(c)(2) of

in connection with transactions in

formation

for

the

misleading in¬
purpose

of in-

tions12 °thers to effect transacit

saJe of

for

with

any

the

security, to

person,

purchase

use any ma-

C-hibi" broker-dealfrom

security

tton

quotations.

The Commission's F^e X-10A-1

relating
tional

trading
admitted

over-the-counter
to

trading

ex-

short

securities

tended

unlawful

connection

ers

titious

practices and fic¬

acts,

effects

preventing

selling

eliminate

its

na¬

exchanges is in¬

short

the

harmful

selling

without

use

under

proper

circumstances.
Sections
Act

11(a). and

authorize

the

(b)

Commission

promulgate such rules

fdurin* *jw period that it is sus- necessary
19UH4K
' 'r*di°S "°der SeC- trading by

In order to carry out its duties

with respect to the anti-manipu¬
lative provisions, the staff of the
Commission
the

prevent

the
to

it deems
excessive

members on exchanges

keeps

daily watch

and

news

stock

tickers

covering* the

New York and
Stock
Exchanges for

American

current information

affecting
Significant price
movements in particular securities
market

prices.

considered

are

and

informal

vestigations into such price
ments

are

to be

pears

when

made
a

in¬

move¬

there

ap¬

possibility of manip¬

ulation.
The
vary,

methods

depending

investigation

the security

upon

involved and the market place in
which it is traded. Generally, the

investigation is initiated by ob¬
taining from the appropriate!
source
(it may be the specialist!
if the security is traded on an ex-1

change),

the identity of buying
selling
brokers
during
a
designated period. The names of

and

their buying and selling customers.
and the amount of their transac¬
tions

from

obtained

are

brokers.

This

information

these
is

an¬

alyzed to determine whether there
appears

the

price.

from
nary

any

concentrated

effort

deliberate

is made unlawful.

security

circulating false

and

substantially

when

any

and the subject is presently under
further
continuing
examination

other national securities

specialist

for any person in connection with

se¬

th
alsc

section

own

two types of such plans pres¬

are

vent such

12(f) was amended
provide for three categories of

This

book.

such

traded

1936, Section

his

makes it unlawful for a

within

One

Act.

is likely to rise or the over-the-counter
market, and
exchange.
fall because of manipulative mar¬
empowers
the
Commission,
by
Ay originally provided by the ket operations.
Persons interested rules and
regulations, to prescribe
Act, trading in securities on na¬ in
Sf/nng or purchasing such se¬ means reasonably designed to pre¬
tional securities
exchanges was to curities are also prohibited from

members

all

orderly market.

unlisted"

^ Pfuhibited in unlisted issues
^ay- 31' 1936- 0n May 27,

available

exchange in regard to the order

be sure, the availability of
accurate
information
does
not

filed with the Commission by the

addition, Section 11(b) makes i
for a specialist to dis
close to anyone information no

unlawful

the

rules

inducing the purchase or sale of the Act which
prohibits brokers
on
exchanges on an the security by others. It prohib¬
and dealers from
engaging in
basis; that is,.without its brokers and dealers from in¬
fraudulent, manipulative and de¬
application by the issuer for ducing the purchase or sale of
ceptive acts and practices, and
listing and registration. The ap¬ such a
security by the dissemina¬ from
making fictitious quotations
plication for unlisted trading is tion of rumors that
be

own

has
adopted
implement the
anti-manipulative provisions of
various

services

continuing flow of infor¬

ordinarily dis¬ national
the correction of creates actual

deficiencies and the furnishing of
information.

Section

security

are

change, and (3) unlisted securities
V4tn

Act

fraudulent

of investors

penalize

may

the

8 Document

the

specialists and odd-lot dealers. I

sion.
Section 15(c)(1) prohibits
manipulative, deceptive and other

appropriate for the protection

or
se-

(2)

Binlauves,

trol the activities of floor trader

contravention

ances by
brokers and dealers in
marily to suspend trading in any over-the-counter transactions and
registered security for a period authorizes the Commission by rule
not exceeding 10 days if, in its to define such devices and con¬
trivances.
opinion, such action is necessary

?a^fo?Ce,ed,ings under Section

surveillance

their members.

19(a)(4)

authorizes

administra-

exchange
to March 1, 1934, whether or
not listed on some other
exchange

by the exchanges of,
financial
responsibility
of

Section

for their

•

By
ex¬

implementing

accounts and to con

a
security
paying any other person for
As I have reiterated throughout
A security which is to be listed
soliciting or inducing a third per¬
this statement, disclosure is the
on a national securities
son to buy the security on a
exchange basic
na¬
requirement of the various
may be registered with the Com¬
tional securities exchange. An ex¬
securities acts.
With
respect to
mission by the issuer filing an ap¬
listed securities, securities which emption from the prohibition of
plication setting forth certain in¬
the rule is provided for those cases
have
been registered under the
formation, part specified by stat¬
where the payment of compensa¬
Securities Act of 1933, securities
ute and part by Commission rule.
tion is made pursuant to the terms
of registered public
utility holding
of a plan, filed by a national se¬
The Act also provides that is¬
companies and their subsidiaries
suers whose securities are
regis¬ and securities of investment com¬ curities exchange and declared

continued
com¬

rules

deceptive device

prescribed by the Commis¬

contrivance
rules

from

sponsible for non-compliance, the

(4) The absence of public
plaint;
1

adopted

Commission

these provisions.

privileges.

the Commission
itself;

one

effect

Commission

others

Act

security

the

with

trading

(3) The fact that such rules are
discussed with the staff of the
Commission and on occasion with

cannot

the

Exchange

any

has

The

est

Concerning

dealer to

transaction

ex¬

thereto;

ties

mission's rules thereunder.

character

changes' rules and the power of
the Commission with
respect

.(5)

Dis¬

Public

unlawful for any mem-

ber, broker

ines

ties

the

Securities

not

surveillance

Adequate

Information

vestors

day-to-day type

and

Issuer and the Security.

clude the Commission's
subsequent
exercise of its powers with
respect
to the exchange's rules.
There is
a

Listed

tered for

Necessarily the successful
ation of

for

semination

basis that would make them

Were

Exchanges Without

exchanges.

respect nipulative

national securi¬

ties

Thursday, April 21, 195

...

If it

influence

appears

justified

analysis of the prelimi¬

information, the buying and
are interviewed.

selling customers
If evidence of
a

formal

may

violation is

order

found,s

investigation

be issued by the Commission,

testimony

taken

under oath

andf

subpoena's issued for books and
records. Although few formal or¬
ders

and
in

investigation

fewer

are

proceedings

relation

the

are

number

issued,
begun
of

in¬

conducted, it is felt that
these investigations operate as a

quiries

significant deterrent to manipula¬
tive

that

activities.
the

prompt

is also believed

initiation

inquiry by the Commission dis¬
courages potential manipulations.
In many discussions with the
Commission
of its staff,

numerous

members

both in thie headquar¬

ters office and in regional

offices,

Act

Release

10 Securities
1 7Q

Exchange

181

Volume

Number

5422

The Commercial and Financial Chronicle

(1861)
have

the

expressed

opinion that,

with respect to the securities mar¬
kets generally, the anti-manipu¬

lative

provisions

act

being

observed

markets

Act

that

and

not

are

the

are

drends

promptly,

rent

manipula¬

theory

the beat is

law

breaking.

manipulative

to
X-16B-7
inclusive)
exempting certain transactions
not

comprehended
of

purposes

the

that

The

anti-

the

activities

the

Section

16(c) prohibits short sales of their

company's

equity securities
directors and 10%

officers,

Rules
tain

deter¬

within

section.

Commission's

X-16C-1, 2, 3 provide

cer¬

limited exemptions.

The

requirement

directors
to

The

and

their security holdings
changes therein is an effec¬

tive

medium both to retard trad¬

who keeps his eye open for trou¬
ble spots.
!

The

rules

the

Commission

of the exchanges

and

the

subjects

manipulation, such

activities

specialists

traders, are necessarily high¬
ly technical. The Congress recog¬
this

fact

when

left

the

making of such rules to the Com¬
mission rather than prohibit legis¬

insiders

months

make

available

The
tion

16(b)

courts,

abuses.

holders
some

lists

to enable

lied

and

the

change
tween

industry

staff

(whether

ex¬

over-the-counter), be¬

the staff and the Commis¬

sion, and among the Commission,
industry representatives > and the
staff.

The

there

are

area

one" in

which

wide differences among

the experts.
The great

difficulty of formu¬

lating rules

with

respect

stockholders
a

illustrated by

rule-making

14(b)

ercise

its

com¬

This

matter has

Interstate

Commerce of

that: " "The

the

should

view either of

the early promulgation of rules
publicly covering these operations
or of
recommending to the Con¬
gress such changes in legislation
as its experience and
study show

closure

program, in
progress
since
the fall of 1953, to formulate rules
is drawing to what it is hoped will
be

successful

recommendations

sion's

additions

from

powers

the

to,

Commis¬

subject

manipulation

and stabilisation. I
point out, however, that the in¬

herent

complexity of the. subject
which

one

will

continue

challenge the best efforts both of
the

Commission

erning

and

authorities

the

gov¬

exchanges

and securities dealers associations.

(4) Unfair

Use

rectors and

Officers,

Large

Di¬

Stockhold¬

for

Giving

Brokers Carrying
Securities

Name Without

Ade¬

Provisions

for

Obtain¬

eficial Owners.
In

sonally
whose

attend
vote

proxy.

and

necessarily

vote

be
continue

should

management

adequate

meetings

must

information

based

transaction requiring

based
with

approval

adequate

respect

that

should

information
transaction.

Persons seeking to gain control of

corporation

should

furnish

in¬

themselves and their

plans.

and

carried

for

14(a)

of the Securities

Exchange Act makes it unlawful
for

any person to solicit proxies
with respect to securities regis¬

tered

national

securities

ex¬

changes in contravention of such
rules and regulations

sary

mission
interest

investors.
der
to

the

for

the

Similar

neces¬

in the public
protection

provisions

respective statutes

registered

holding

un¬

apply

companies

Section 16(a) requires that each

rules under this section requiring
in connection with proxy solici¬

Trade

Own

Inside
in

Securities

Companies.

officer and
tion

Information

director of

corpora¬

with

equity securities regis¬
tered for trading on a national se¬
curities exchange, and each 10%
owner

such

securities, file re¬
ports showing his holdings and
any
change
in
such
holdings.

These

reports

public

inspection

available

are

and

mission publishes a
mary

the

for

Com¬

monthly

sum¬

of the information contained

any

use

of inside

16(b)

pro¬

profit realized by
or 10% stock¬

officer, director

holder from

action
(a sale
purchase
and

tion

calculated

vestor
each
to

act

enable

the

short-swing trans¬
and

purchase

sale

within

six

months) is recoverable by the is¬

intelligently

which

his

vote

sought.
14

the

Act

and

the

rules issued thereunder do

proxy

not compel

the soliciation of

prox¬

ies, nor do they vest in the Com¬
mission any authority with respect
to the internal affairs of a
except in

the

areas

relat¬

ing to the methods and procedures
for

the

The
clude

solicitation

solicitors,
other
The

the

matters
proxy

means

proxies.

proxy statement must
information regarding

nominees
to

form

whereby

must

each

and

acted

giving

members

These rules

securities

such

cover

exchange

and of securities listed

the

members
national

exchanges/ However,

since the rules of

of the

some

securities:

(a)

the

without

the

written

mingling
with

the

securities
loan

the

and

for

sum

for

the

The proxy rules, evolved
gradu¬

8(b) of the Act
certain
provisions
in¬

tion

The

financial

changes

responsibility

difficult task.

I will be glad
to supply the
Committee with a detailed state¬
ment

contests.

our

practices'in proxy
suggest, how¬

that

ever,

not

solved

those

the

to suggest.

practices

problem,
do

nor

have

the

legislation

The Commission's aim

contests is to keep the
under sufficient control so

proxy

fight
that

by the time

the

election

comes, the stockholders have had
a
fair presentation of both sides.

Generally speaking,

I think that
administrative practices ha^d
produced that result.
However,

the

exchanges rather
by action of the Commission.
X-15C3-1

that

further

contests

formulate

experience / in
enable

may

rules

the

which will eliminate

subject

some

the

present uncertainties. I might sug¬
gest that there is some analogy
between a proxy contest and a

political
naive

campaign.

suppose

think it is
that1 struggles
I

for

corporate control will ever
lose the characteristics of a
fight.

(6)

duct

Practices

Brokers

and Dealers.

dealer;

engaging

extend

credit,

tain

capital

at least 5%'of

indebtedness.

the

money

lated

aggregate

While this rule

lieved
and

members

least

have

already referred
of

the

in the

securities

changes to their disciplinary
their

members..

ex¬

power

The

provides safeguards for the

Act

ex¬

(d)

the

1934,

certain

sion

31,

amend

proposal
X-15C3-1 which,

Rule

adopted,

should
safeguards with
nancial

provide

require¬

the

Under

the

computation

present
of

tal" there is deducted

"net

rule

capi¬

10% of the

market

value

form

part of the capital of the

broker

things,

the
the

this
of

case

which

Among

other

revision

prooosed

increase

securities

dealer.

would

deduction

all .securities

duction would be 5%

securities
of

are

than

unless such

selling at a discount
5%, in which case

the deduction would be determined

according to

specified formula.

has

Act of 1933v
Exchange Act of

dealers

are

the

and

ness

inspected
same

regularity

is not correct.

calculated
risk
this limited program

diminished

the

inspected

and

the

inspected

are

tion.

few

inspection

by
of

that
the

national

securities
from

exchange except (1)
through a member bank

the

Federal

Reserve

signed agreements with the

Federal Reserve
with

the

ments
such

Act

(3)

board

and

rules and

other

comply
require¬

accordance

regulations

with

the

have

Financial!

are filed
with the Com¬
mission bv registered brokers and
dealers. Most really serious viola¬

tions

broker or dealer give
complaint either to the
Commission or to local
regulatoryrise

This 30% deduction would also be

authorities.

applied to certain commodity fu¬
ture contracts, whether long or

various

short,

and

purchases

open

contractual commitments.
Section

the

requires
brokers

transact

members,

brokers
the

file

Act

exchanges,

through

istered

maintain

dealers who

and

books

the

rules

and

While

records

required

regulations

violations

some

securities

laws

requires

registered

brokers

and

the

undoubt¬

edly go undetected, I believe that
there is not prevalent any serious
wave
ers

illegal practices bv brok¬

and

fidence

dealers.

base

this

con¬

on:

(1) The fact that in many trans¬

reg¬

dealers

reports

and

busi¬

actions

jured
state

where

customer

defrauded,

law

well

in¬

violation of
Federal

law-

is involved and the customer him¬
both the state

the Federal courts;

(2) The existence of the Securi¬
and

Exchange

Commission,

and in many cases of a state com¬

dealers, most members of national
exchanges, and brokers

mission,

and

broker-dealer out of

securities

dealers

who

business

System,

have

Dealers

organiza¬

reports

ties

National

states

procedures.

The Commission's Rule X-17A-5

security registered

the

Securities

and

non-exempted

by their exchanges

members of

Association

the Commission to make periodic
inspections of such persons.

any

involved

is somewhat
fact that the

members of most stock
exchanges
are

funds of a customer in
the hands of his broker or dealer.
Section 8(a)
makes it unlawful
on

banks. Thafe

able, under present budgets, tc
inspect no more thai) 800 per year*

The

self has recourse to

borrow

with
thorough¬

The Commission is

the Commission. It also authorizes

coun¬

satisfactorily solved..

secu¬

rities and

willfully vio¬

throughout the

pretty much

and dealers subject to its

ments.12

any

Many members of the public are
under the impression that brokers

further

brokers

from

continuing

try
presents v an
administrative
problem to the Commission which

enjoined

rule thereunder.

any

and dealers

to the fi¬

resoect

responsibility

con¬

broker

Securities

has not been

The policing of the activities of.
than 4,100 registered brokers

•

1955, the Commis¬

announced

(a) made

comprehensive.
Jan.

the Securities

stringent

(c)

curity;

equivalent

their

control¬

any

conduct or practice in connection
with the purchase or sale of
a se¬

customers, to main¬

liquid

carry

person,

business

dealers who do business in the
over-the-counter market and who

ness

discussion

Commission requires brokers and

members

Certain

dealer,

or controlled

volving the purchase or sale
security or arising out of the

adopted by the

handling 'of
proxy contests involves5 h consid'- except undefaulted debt securities
erable element of hurly burly. The having a fixed interest rate and
Commission and its staff are
hope¬ maturity date, as to which the de¬
ful

ing before the Commission with,
respect to registration; or (b) has
been convicted within 10
years of
any
felony or misdemeanor in¬

ex¬

and audits of the

30%

administrative

revocation

false or misleading statement at
material fact in any application
for registration or in
any proceed¬

generally undertaken
safeguarded by requirements

Rule

denial

empts

specified securities exchanges from
its requirements, such
exchanges
have requirements which are be¬

waves, presents

the

registra¬

dealer

in the public interest and that
such,

ambiguities

tive

Section

Commission

or revoke

broker

section, it has been of lim¬
application.

ited

sented

the

deny

finds that

in the

control

Commission.

gives

power to

ling

the provisions of the
present rules

proxy contest, once the story hits
the newspapers and is on the air

registered

of the limitations and

securities for

administrative

over-the-

to limit the aggregate in¬
debtedness which members, brok¬
ers, and dealers subject to its re¬
quirements may incur, by reason

ally, have generally worked well,
although we are not satisfied with

they apply to the problems pre¬
by proxy contests. Effec¬

the

market

the

15(b)
Section

than

authority

unlawful practices.

counter

tended

staff is at the present time

under Section 14(b).

detect

with

cus¬

to be

consideration to rules which would
further implement the

re¬

ing transactions in

tomers.11
While

the

are con¬

15(a) of the Act re¬
quires brokers and dealers effect¬

all securities

accounts

offices,

Section

the

for the account of

customer, the
giving

(c)

exceeding

Commission's

branch

made

requirements and?

connection

firm

the

17 of the Act.

ducted to determine whether
brok¬
ers
and
dealers
are
complying
with applicable

cus¬

ers who might
give proxies with
respect to listed securities carried
a

subjecting customers' securities
lien

staff

gional

com¬

and

ledgers

powers

granted by Section
These inspections,

com¬

(b) the

firm's

require

In 1937 the Commission
initiated
a program of
inspection of brokers
and
dealers
under
the

securities

consent

which

and

cus¬

members of national securities

the

so¬

tomers'

ords, including blotters,
ledger accounts.

con¬

hypothecation

and

brokers and dealers ta
maintain specified books and
rec¬

re¬

hypothecation

mingling of customers'

X-17A-3

prohibit the fol¬
practices
in
connection

the

extending credit to
or
holding customers*

members,

generally

with

ex¬

(2) from non-member banks which

provide

person

The Commission's
rules

ac¬

customers

customer's

any

changes do not adequately govern
the obligations of brokers or deal¬

all

quirements to lend

securities without the written
sent of such customer.

public

has made

or
securities.
In
addition,
the Commission has
adopted Rules

member,

dealer subject to its

carried

in¬

upon.

broker

if the firm

funds

Section 8(d)
a

independent

practice

in contravention

unlawful for

contains

proxies

over

Section

countants

account

finan¬

during each calendar
These reports must be cer¬

tified

report

year.

regulations prescribed

total amount due

neces¬

the

by the Commission.
makes

subject

through members, to file
cial

hypothecate

for

customer

any

of rules and

the Com¬

appropriate in the public
for the protection of

majority

upon

consent

The major exchanges have their
rules relating to the

in¬

separate matter with respect

ration

To prevent unfair
information
Section
vides that

tations the disclosure of informa¬

corpo¬

in the reports.

of such

own

proxy

prescribe

may

or appropriate

sary

Their

account

prescribe

may

the Com¬

and investment companise.
The Commission
has
adopted

ers

the

our

Section

securities carried

tomers'

stewardship of that management. other
hand
A vote

respect of any security registered
a
national securities
exchange

the

about

dealer

requirements

each such customer,

publicly held corporation
ownership of stock is scattered
among holders who cannot' per¬
a

its

dealer who does business
through
a member, to
give a proxy in

such

ing the Authority of the Ben¬

substructions

quate

conclusion.

for

either

Customers'

formation

have

make

ex¬

prolix.

under seri¬

the

and

stockholder

to be desirable."

now

and

Use at Corporate Meetings on
the Basis of Inadequate Dis¬

House

earnestly
and
expeditiously
grapple with the problem of sta¬
bilization with the

become

been

(5) The Solicitation of Proxies

and

recommended

Commission

power

study
during the
last
18
months, and it is hoped that more
understandable,
but
equally
stringent, rules can be formulated.

report dated Dec. 30, 1952,

Representatives

ex¬

ous

"Street"

Foreign

the

rule-making

both
subjects have
ceedingly
complex

formal rules for almost 21 years.
on

also

and

with respect to reports of holdings
and changes therein. The rules on

Proxies

of the Securities

Exchange Act makes it unlawful
for any member of a national se¬
curities exchange or
any broker or

power

transactions "not

subsection"

the subject of sta¬

Committee

largely interest or
with interpretations and with the investors.

rule', making, it has been admin¬
istered on an ad hoc basis without
In

laws

broker

any

lowing

Section

mission

The Commission's problems under
Section 16 have had to do

bilization. While the statute desig¬
nated stabilization as a subject of

the

In view

the

rules and regulations

by the
Commission.

the

techniques of market activities is

laws

with management, to solicit
proxies of other security

the

se¬

security holders, not al¬

exchanges.

between

under

the

states, provision is made also

this

held

which

action

difficulty of obtaining stock¬

prehended within the purpose of

are

for

Federal Reserve Board
prescribes
for
certain purposes,
such
as
emergency needs of brokers. Sec¬
tion 8(c) makes it unlawful
for

proxy

made

curity holders under the
the state of incorporation.
of the

When

sions

holder

subject

any

changes are proposed in
such rules, extensive discus¬

its

proposal

enforced

are

not

exercise of its

liability provisions of Sec¬ customer, in contravention

to exempt

rise

six-

and

of action against the trader.

cause

latively certain activities which it
given

the

period

that the issuer has

found

had

within

statutory

knowledge

and

floor

nized

report

ing

include

security

proper

stockholders

alert

are
largely those of
policeman on the beat,

se¬

officers, holders.

for

large

upon.

curity holder, subject to certain
limitations, may also require man¬

the

Commission
an

acted

such

in great measure on

X-16B-1

Out of hun-

stockholders.

policeman

security holder

any

indicate by ballot his
disapproval of each

any

own

the

matter

material

the general absence of

approval

above, over the years
very few manipulation cases have
been brought. The
opinion as to

confidence

licited may

agement

described

tion is based

initially

tion. The Commission has
adopted
rules under Section 16(b) (Rules

of trading quizzes or in¬
investigations of the type

formal

for recovery

sue

inures

may sue on behalf of the corpora¬

manipulation

prove.

profits

such

lated in contravention of the Act.

is difficult

the

the corporation itself. If it fails to

manipu¬

being

To be sure, an act of

The right to

suer.

11 Rule

York

X-8C-1

and X-15C2-1. The New

Stock

cense

which can revoke a li¬
registration (i.e. put the
business), is

deterrent to unlawful

practices:

Exchange and some of the
other exchanges also have rules requir¬
ing earmarking or segregation of cus¬
tomers'
full-paid securities and excess

(3) The possibility of an inspec¬
tion by one of the inspecting agen¬
cies, whether exchange, NASD,

collateral.

state

12 Securities

No. 5132.

Exchange

Act

Release
'

authority

or the Securities
Continued on page 38

(1862)

The Cornmercial and Financial Chronicle

Continued

from

page

Gordon Graves Offers

Preserving
Unmanipulated Market

A Free and
and

drawn

which

such

The filing of financial re¬
ports gives some indication of dan¬

rent.

pertaining

and

dealers

considerable

reliance

disposition

must
on

the

Dec.

31, 1958.

auc¬

Proceeds

people

In 1938 the Congress added Sec¬
to

.the

Securities

Ex¬

composed

the-counter
The

rules

brokers

such

over-

association

imposed?

Securities and

(7) Excessive Use

free

has certain regulatory supervision
such

over

associations,

authorized

ciplinary

review

actions

and

their

membership. While only
tional

securities

one

association

National Association of

Dealers,

Inc.—has

is
dis¬

denials

of
na¬

—

the

Securities

become

regis¬

tered under this Act, substantially
all important components of the
securities

industry

members of

been

have

it. Its

substantial

factor

stamping out abuses in the overthe-counter market, particularly
in the

of unethical

area

have

already commented on
the importance of the self-regula¬
tory principle in the Securities

Exchange

Act

that must

and

the

pinned

the

faith
suc¬

cessful operation of that principle.
Our liaison with NASD is
good.
Its officers and board of governors
have been cooperative.
The

over-the-counter

generally presents
of

questions

market.

than

market

different set

the

exchange

example, available
of prices for unlisted

quotations

not

precisely

indi¬

cate the amount for which securi¬
ties
are
being bought or sold.

Companies
listed

whose

directors

securities

are

their

and

officers

10%

and

stockholders

and

and
companies which have not
registered securities under the Se¬

curities

Act

1933

are

not

sub¬

ject to the reporting requirements.
The provisions for corporate re¬
capture of insiders' short-swing

trading profits and the rules reg¬
ulating proxy solicitation are not
applicable

the

purpose

the excessive

purchase

preventing

of credit for the

use

carrying of securities,

Section 7 of the Act makes it

unlisted

companies
except investment companies and
companies subject ten the Public

un¬

speculation"
shares

lawful for any member of a na¬
tional securities exchange or any
broker

dealer

transacting a
through'the

business in securities
medium

extend,
the

such

any

maintain

extension

member

for

arrange

credit

the

rules

same

listed companies and that it would
be desirable to have the
price at
which securities of unlisted com¬

panies
as

being bought and sold
precisely ascertainable as those

The

others,
(1)

quisition,

drilling

and vanadium properties.

uranium

All of the proceeds of the of cer-

empted

whether such claims,

than

the

amount

credit

Gov¬

of the Federal Reserve Sys¬
on securities registered
on a

ernors

tem

national securities

exchange.

adopted

Reserve

System

Regulations

ture

has

and

from

exchanges

brokers and dealers
business
such

members.
if

the

stock

and

purchasing
registred

loan

for

secured

The

extent

Commission looks into the

authorities

into the matter of possible

regulations

adopted

have

in¬

change Act

the

Securities

Ex¬

above indicated?

convertible

Act

Section

makes

thereunder,

11(d)(1)

the

for

business

extend

or arrange for
sion of credit to or for

unlawful

dealer and

any

issue

new

group

of Allied's

common

Cleve

and

Swaine

have

been

staff

Daniel

the

within

Charles
added

dis¬

days.

(X-15C3-1) also act indirectly to
the

securities

markets.

DENVER,
Writer

Colo.—John

two With

SAN

Christensen,

Seventeenth Street.

Hall

Mr. Hall

California

Wilson, Johnson

become

Arthur

affiliated

Johnson &
ery

and

Street,

Jan

with

New

York

New

York

Leif

Stock

become
as

operating
$9,467,291

Joins

associated

revenues

share of

com-

and

cen-

increased from

$16,616,673

net

and

was

equal to $2.42

common stock.

ROME, GA. — John W. Williams is conducting a securities
business from offices at 305 East
Second

Street

under

of John

the

firm

W. Williams Corn-

Morgan Staff

San

formed

oty, utah

Incorporated
with

LOS

Morgan &
Spring Street*

the

Los ^Angeles

stock Exchange.
ously with J.

Logan

Joins Beil &

was previ& Co.

offices at 444 South

Virgil D. Wright Opens

PETERSBURG,

Fuller

now

with

Beil

members

the
i

Midwest

W£

increased.

bonds

3%%,

3%%, 1995, Wheel

convertible

1965,

and

debenture:

the

stocks of American

commo

Chicle, Illinoi

Central R.R., and Sears Roebucl
Common stock holdings decrease

American

were

Can,

America

house Electric.
WELLINGTON

just published

designed

COMPANY

16-page bookie
help
dealers
pla
a

mail-prospecting

fund

market,

contemplates

enclosure of the

Wellington
'Mr.
one

Fox

lettei

several, may be used inde
pendently and exclusively of th
remaining letters. The new mail
prospecting campaign, accordih.
to the
one

Wellington executive, add
feature

dealer

that

service.

under

this

the

Fund'

pointed

service

o'u

Welling

ton's 3,000 dealers are offered th'

widest

variety of effective sale
including an advertising ma
service, window displays, a com
plete sales manual, a completi
set

literature, training course;
salesmen, and the new colo

for

motion

picture—"Your

OF NEW YORK hs
been appointed sole transfer
ager
in New York
City for

$1 par valu
capital stock of The Dreyfus Fun<

secu¬

New Mexico Inv. Co.
FE, N. Mex.—Irvin P.

Murphy

(Special to The Financial Chronicle)

has

Mexico

Joins Johnston Bell

Investment

formed

Company with offices

the

New

Securities
at 54%

affiliated with John¬

San

Francisco

Bell

THE BANK

SANTA

now

America."

Bird Road.

th<
pros

FLA.—Virgil Incorporated.

Wright is engaging in

feasi;

securities business.

Co.,

811

Manatee

First Southern Inv. Adds
Si'..^'-.(Special to The Financial Chronicle)

BOYNTON

Gray,

BEACH, Fla.—Guy

Jr.

now

with

First

Southern
Investors
Corporation,
Southwest First Avenue.

With A.. ML KlUUCr Co.

Fla.—Geo.
&

Hough, Inc., 33 Fourth St., North,
Exchange.

(Special to The Financial Chronicle)

Hough

(Special to The Financial Chronicle)

ST.

been

State Street. William G. Shields
is a principal of the firm.

ston

with

now

South

Electa

common

Street,

engage

Avenue, West.

ANGELES, Calif.—Fred H.

63.4

has

BRADENTON, Florida—Carl

Virginia

Motors

aids

salt°lake

with

(Special to The Financial Chronicle)

Massey

General

income after preferred dividends pectus and literature.
Martin said that any
£rom $1,212,866 to $1,190,709. The

an¬

security analyst.

and

Souther

tral

yesterday that Lawrence

has

Co.,

Company

stock,

and Power. The fund's investmer

rities business from offices at 306

Exchange,

stocks

campaigns, ac
to
Milton
Fox-Martir
offices, all automatic. Its ten cording
largest exchanges are Tampa, St. manager of dealer relations.
The booklet contains 14 special
Petersburg, Clearwater, Lakeland,
Sarasota, Bradenton, Winter Ha-' purpose letters, plus some help
ful
hints
on
direct
mail
cam
ven, Bartow, Plant City and Lake
paigns. Each letter, aimed at on
Wales.
>
•
During the five years 1950-1954 particular segment of the mutda
than 232,000 stations

Smith is

Wilson,

members of the
Exchange.

The company's telephone system
serves

Co., One Wall Street,
City, members of the

preferred

dend.

CORAL GABLES,

have

Higgins, 300 Montgom¬

Francisco Stock

stock will be entitled to this divi-

Company in San Fran¬

common

Gas,
DuPont,
Geners
Electric, National Lead, Newpoi
News
Shipbuilding, Pacific Ga
stock has been declared
Electric, Republic Naturs
payable and
July x to stockholders of record Gas, Shell Oil, Socony Vacuur
june 10. The additional common Oil, U. S. Gypsum and
Westing

cisco.

Cohu

4%£ 198

Natural

was

With Cohu & Co.

trust'- bonds

Raihv

quarterly
dividend
of
45
cents per share on the common

formerly associated with the First

FRANCISCO, Calif.—John

Fisher

be ^equate to

service

Stocks

Peters,
Inc., 724

3%'°/

Pacific

name

has become associated with

members
1

construction autnor-

all demands for addi-

pany.

(Special to The Financial Chronicle)

aggregate-indebtedness ratio rule
in

tional

Hall With Peters, Writer

addition, the provisions of Sec¬
tion 8 of the Act, the
hypotheca¬
tion rules, and
the net-capital-

credit

?ystem; T,he com>?any

the

control

comp?ny *
Fep?

D>,„ Weston & Co.,
Beverly Drive.

South

customer

w^e toll dialing throughout the

J. W. Williams Co. Formed

HILLS, CALIF. —
Benton, Jack C. Fouts,
L.
Goldshine,
Arnold

Handleman

140

Rubber
the

revenue

1954 net income

(Special to The Financial Chronicle)

broker, to
the exten¬
a

security (other than an
exempted
security)
which was
a

and

BEVERLY

any

mined

ass

rough

debentures,

Northern

ing Steel

Daniel D. Weston Adds

by banks.

conducts

who

person,
both as

amount

gross

ore

invested

Standard Oil of Indiana conver
ible debentures, 3% %y 1982, U.

look

operate indirectly to control

credit.

the

shar

Positions eliminated from th
exchanges,
resulting in net additions of 14 portfolio were City of Chicag
toll positions, and installation of Calumet
Skyway
Toll
Bridg

per

viola¬

Other provisions of the Securi¬
ties Exchange Act, and rules and
also

for

Sanford

of possible
violations of
Regulation T by exchange mem¬
bers, brokers and dealers, and the

vestors suffered as a result of the
failure of Congress to extend the

coverage

value

gross

Upon completion of the financing, there will be outstanding 1,-

national securities

bank-examining

22%

parties

of
stock

carrying any

tions of Regulation U

in the aggregate from 8% to
to be paid to various third

purpose

exchange.
matter

loan by a

the

na-

royalties

subject

are

transacting a
through 732.000 shares
Regulation U stock.

overriding royalties ranging

securities

limits the amount of
bank

and

terests

sion of credit

securities

are

Such in-

received

tional

exploration

told

Fund's

New investment positions w£j
established in Continental Bakir

include

approximately 100
ore-bearing,munities in Florida through

sold.

na¬

for

extensive work thereon.

Regulation T controls the exten¬

by members of

used

President

Whitehall

lAit*

mining claims to determine

point to warrant further and

plus

The Board of Governors of the

Federal

will

(Special to The Financial Chronicle)

presented however:
what

exploration, acand mining of

of the

following questions, among
To

the

engaging

ing

exchange (or ex¬
securities), or to extend

was

31, 1955.

lzedts? 'ar
meet fully

organized under Delaware laws in
August, 1954, for the purpose of

tional securities

companies.

are

cent)

one

$1.18

toll positions in various

Mines,

Mines, Inc.

than securities registered on a na¬

are

for listed

(par

Allied Uranium

other

and

at continued

approximately

600,000

share.

per

the firm

their

Uranium

Inc. common stock
at

dicate

Board

15, holders,

Certain officers and employees
of the ^-Company will have tne
privilege of subscribing pro rata

The major projects
installation of

issue

Allied

nounced

governed
those of

five

Cooney * Co, New York
is offering publicly "as a

tribution of which he participated
as
a
member of the selling syn¬

proxies
should be

each

Logic would indicate that the
obligations of officers, directors
and large stockholders of publicly
held unlisted companies, and the
of

®£ks. /•

Offered at $1
H.

part

solicitation

Allied Uranium Stock

Utility Holding Company Act.

management

this

For

securities

not

For

activities

not included among the illegal ac¬
tivities prescribed by the Act.

for

1955.

City,

become prescribed by the Board of

activities have

one

company

of Credit and

Use of Low Margins.

will

Ex¬

Excessive Speculation Through

tors, the public interest and

During the first quarter, Fra
cis F. Randolph, Chairman of t

collateral
The

and

and open market. The Commission

rate

distribution

realized gain on investments.

ten by a group of investment with the fund's
essentially coi
firms managed jointly by Morgan servative investment
policies. N
Stanley & Co. and Coggeshall & assets totaled
$5,855,000 on Marc

:
sale

1954

with

must be designed to promote

just
equitable principles of trade,
to provide safeguards against un¬
reasonable
profits and charges,
and, in general, to protect inves¬

com-

share to 158,203 shares of
additional common stock at the
per

1980,

change Act were introduced in the
79th, 81st and 82nd Congresses
but they were not passed.

dealers.

and

its

Mutual Funds

responsibility

to subject companies

visions of the

change Act. This provides for the
registration of "national securities
associations"

rights to

page

(EDT), on May 2, 1955. 50% in bonds and preferred stocl
The offering is being underwrit- and 50% in common stocks in lir

used, it is
contemplated, for the further exploration and development of the

15A

stock

from

Co.

engaged-iki
»A/yy
exploration for oil airdVga£ vah'd ^
from the sale will be
300 or more security holders and the
development of these *propet^' used fa pay -a part of the cost of
$3,000,000 or more of assets to the ties, concentrating
principally irirorrrpany'S construction proreporting, proxy solicitation and the states of
Mississippi,^abainai^'8^®m'--'^^h ;is expected to call
a-P
insider trading and liability pro¬
for -ovnon^tf11*"14^ of <£ 1 ft OAA AAA
Louisiana and Texas.
expenditures
$16,200,000 in
Bills

obey the law.

tion

^
the

from

stock

common

handle

Telephone

the

rights to buy a maximum of 100,000 shares of the company's common
stock at
$3 a share until

by the addi¬

necessary

administrative

which would

place

the nat¬

most

*staff

tional

Peninsular

has issued to holders of
mon

$36

lishment be enlarged

The

company will
sell shares held of record on April
the underwriter and selling group., 1955* c The.
rights will expire
at two cents per optioned- share
3:3frp.m.

Should the Federal estab^

(4)

things,
bowever, I think that the Com¬
mittee in appraising the efficacy
provisions

stock

common

addition,

/.■

Above and beyond these

ural

compa¬

without the mechanics of

Inc.

(par one cent)
to the public today (April 21) at
$2 a share as a speculation.
In

line

covered

Co.

sold underwriter 250,-

Co.

extension of the coverage

tion market?

-'^''vVw'v

brokers

Graves

000 shares of Southern States Oil

(3) How, from a practical
standpoint, can prices of actual
sales
be
precisely ascertainable

(5) The neWs of illegal activity
by one broker or dealer travels
rapidly in the financial commu¬
nity anh this fact acts as a deter¬

the

unlisted

would

offering

of this Act?

ger spots;

shall

between

nies

(4)

...

Where

(2)

Exchange Commission is also
to unlawful activity;

deterrent

Gordon

Thursday, April 21, 19

Continued

Peninsular Telephone
Gffer Underwritten

So. Stales Gi! Stock

SEC Powers Limited to

Stock

(Special to The Financial Chronicle)

MIAMI, Fla.—Mrs. Elizabeth S.
Clayton has joined the staff of
A. M. Kidder

ler Street.

XACo., 139 East Flag-

New York Sees. Co.
Openi
James B.
a

Duffy is engaging ir

securities

business from offices

Broadway, New York City

under the firm

name

of New York

Securities Co.

John Obrecht Opens
(Special to The Financial Chronicle)

WHEATRIDGE, Colo.—John
Obrecht

engaging in

securi¬

ties business from offices at 4295

Harlan Street.

Volume

Number 5422

181

The Commercial and Financial Chronicle

(1863)

The

Indications of Current
Business

Activity

week
Latest

AMERICAN

IRON

STEEL

AND

Indicated

steel operations
Equivalent to—

Steel ingots

AMERICAN
Crude

and

month available.

month ended

Month

Week

W^k

Ago

*94.6

93.7

Ago
68.6

*2,284,000

2,262,000

output—dally

(bbls.

average

DEBITS—BOARD OF GOVERNORS OF
THE FEDERAL RESERVE
SYSTEM—Month
of March (in

thousands)

6,811,400
116,992,000

6,807,350

Apr.

7,206,000

7,476,000

6,759,000

23,434,000

24,601,000

22,898,000

Apr.

2,300,000

23,771,000
2,313,000

2,579,000

2,369,000

(bbls.)
Apr.
output (bbls.)
Apr.
Stocks at refineries, bulk terminals, In transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Apr.
Kerosene (bbls.) at
Apr.
Distillate fuel oil (bbls.) at
—Apr.
Residual fuel oil (bbls.) at™
Apr;

11,105,000
8,293,000

11,774,000

12,443,000

9,399,000

7,915,000

8,532,000

8,451,000

183,185,000

185,282,000

183,424,000

18,696,000

18,427,000

61,934,000

18,620,000
61,850,000

179,729,000
17,269,000

63,832,000

57,772,000

44,620,000

44,634,000

45,113,000

Apr.5

663,462

659,059

666,548

606,790

Apr.-

625,030

620,396

648,838

fuel

oil

—

output

Residual fuel oil

ASSOCIATION

AMERICAN

freight

freight received from

CIVIL

loaded

ENGINEERING

(number

(no.

cars)

6,567,550

NEW YORK—As

Imports

;'$
14;;

}•
Apr.

municipal

OUTPUT

(U.

Bituminous coal

;

Dollar

goods

DEPARTMENT

STORE

EDISON

output

FAILURES

(in

ssi.oos

Private

$272,711,000

$335,015,000

$374,831,000

139,691,000

178,309,000

154,015,000

114,229,000

150,330,000

94,652,000

92,817,000

27,979,000

59,363,000

21,412,000

8,200,000

7,350,000

8,380,000

410,000

455,000

442,000

501,000

114

102

113

Other

122

204

211

9,814,000

8.345,000

Farm

Pig

(per

gross

iron

ton)

4.634c

PRICES

Electrolytic

(E.

Zinc

$25.17

(East

Louis)
St.

Hospital

91.250c

99.500c

Other

15.000c

14.000c

Military

Apr.J?
Apr. 43

14.800c

13.800c

12.000c

11.500c

10.250c

Sewer

97.36

100.44

MOODY'S BOND PRICES DAILY AVERAGES:
U. S.

.Apr.

corporate

Aaa

———I——;

96.34
109.42

109.42

109.24

112.93

112.75

110.70

110.88

110.70

112.12

Railroad

109.60

Public

Utilities

Industrials

Group

104.48

104.31

107.62

109.60

U. S.

109.97

YIELD

AVERAGES:

DAILY

Government Bonds

109.97

109.79

110.52

110.34

2.77

2.69

3.20

3.21

2.46
3.12

3.01

3.02

2.85

3.13

Apr. 19

Utilities

Industrials
MOODY'S
NATIONAL

3.30

Apr:l9
Apr. 49

Group

Group
INDEX

PAPERBOARD

Orders received

(tons)—.

Production

Apr."

Unfilled orders

at end

(tons)

3.19

3.15

3.49

of period

3.30

3.19

-3.18

3.14

3.15

403.6

•

AVERAGE

3.12

Cake

and

14
52

PROD¬

COMMERCE—Month

mills

(tons)

84,193

118,703

513,729
1,412,061

Feb.

597,822

623,650

1,841,597

1,879,379

145,221,000

141,494,000

169,946,000

196,278,000

207,447,000

151,001,000

169,197,000

202,671,000

545,824,000
141,252,000

660,701,000
15S,433,000

1,177,790,000
188,791,000

141,288,000

144,295,000

141,894,000

257,064

Feb.

242,133

(tons)

Shipped
254,012

229,743

271,066

Stocks

269,618

242,573

Produced

547,884

515,670

504,708

413,245

107.10

107.11

107,33

109.16

(tons)

Feb.

257,563

68,917

114,203

Feb.

Fiber

356,759

1,253,152

1,493,102

980,698

Dollar value

Apr.

$64,645,879

$67,665,162

$76,928,678

$39,653,869

Apr.

1,185,730

1,143,902

1,338,805

Apr.

8,451

7,983

4,690

9,234

Apr.

1,177,279

1,135,919

1,334,115

196,548

199,817

1,040

bales)—

67G

778

1,075
1,188

1,098

„

1,274,329

213,459

186,850
115,423

618

(1,000-lb.

Stocks Feb.

389,254

165,675

Produced

Apr.

114,598

198,170

Shipped

COMMISSION:

88,486
138,347

133,536

—

Produced
Hull

78,015
131,272

123,301

(tons)

Shipped (tons)
Linters, running bales)
Stocks

146,087
294,428

239,499

Hulls-

336,760

184,165,000

254,430

(tons)

255,796

■

112,784

Meal—

(tons)

289,436

547

1,175

992,237

—

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'

short

Customers'

other

sales—

________

.__

value

Round-lot

$57,768,454

$63,267,057

$42,527,514

320,220

314,080

331,290

309,150

320,220

314,080

331,290

309~150

-Apr.

STOCK

TOTAL ROUND-LOT
EXCHANGE

AND

ACCOUNT

SALES

ROUND-LOT

THE

STOCK

MEMBERS

413,560

431,350

513,700

316,560

STOCK

Other

TRANSACTIONS

FOR

405,610

315,520

12,553,500

9,272,880

13,045,230

14,783,150
15,320,550

12,239,010

Mar. 26

537,400

Mar. 26

ACCOUNT

491,730

12,644,620

9,588,400

after

fixed

—

chavges__

deductions

2,042,670

1,312,680

1,055,270

253,690

1,379,820

1,801,010

1,051,370

2,069,630

1,305,060

income

396,140

RECT

1,116,100

272,680

taxes

19,296,109

15,681,701

stock

6,360.974

3,722,452

9,465,284

2.70

5.01

1.65

$163,382,000

$281,000,000

$275,000,000

274,047,818

278,181,954

270,235,368

32,614

26,948

77,086

$274,080,432

$278,208,902

$270,312,455

509,223

511,967

555,952

$273,571,209

$277,696,935

$269,756,502

3,30^,064

5,243,497

TRANSACTIONS

DI¬

SECURITIES

March:

$22,437,550

18,900

35,820
350,350

238,390

344,000

278,960

386,170

251,090

362,900

Total

Mar. 26

475,495

562,820

461,253

328,394

at any time.
Outstanding—

75,820

52,110

23,510

Other
Total
Total

18,900

Mar..26

91,570

Mar. 26

583,010

548,775

664,625

328,400

——Mar. 26

674,580

624,595

716,735

351,910

2,337,495

3,001.630

1,955,593

sales

for account

GOVT.

of members—

purchases

face

Mar. 26

388,130

380,260

318,000

Total gross

Mar. 26

2,222,890

2,700,135

1,954,385

1,631,680

Mar. 26

2,611,020

3,080,395

2,272,885

1,830,910

sales

PRICES,

WHOLESALE
LABOR

—

(1947-49

NEW
—

SERIES

—

DEPT.

Processed

110.5

*110.4

110.0

Total

94.3

*92.5

92.3

-Apr. 12

farm

and

foods

^Includes

677,000

the

public

debt

and

guaran¬

obligations
outstanding

public

debt

obli¬

gations not subject (,o debt limitation

102.6

*103.0

101.8

105.2

*85.1

80.5

93.9

Apr. 12

115.7

*115.7

115.5

114.5

above

issuable

authority

7,428,790

100.3

barrels of fore'en crude runs. §Based on new annual capacity of 125,828,310 tons
of Jan. 1, 1955, as against Jan. 1, 1954 basis of 124,330,410tons.
tNumber of orders not reported since introduction of Monthly Investment Plan.
figure.

teed

gross

Deduct—other

111.0

-Apr. 12

foods

commodities other than

•Revised

owned

Treasury

under

-Apr. 12
—

Meats
All

outstanding

Grand total outstanding
face amount of obligations,

84.2

products

Balance

commodities

Farm

LIMITATION

omitted):

may

100):

Commodity Group—
All

DEBT

(000's

that

public debt—
obligations not

Guaranteed

199,230

Other

sales

amount

Mar. 26

Short sales

Total

STATUTORY

—As of March 31

1,727,394

-——

round-lot transactions

Total

off the floor—

sales

2,213,457

$18,878,300

260,060

Short sales

43,142,484

29,916,094

purchases

Mar. 26

purchases

18,924,373

43,826,212

Crl5,183,869

GUARANTEED

Mar. 26

transactions Initiated

4,622,711

126,623,784

43,877,328

22,167,646

A.—Month

Mar. 26

Total

21,137,830

57,729,140

21,203,421

AND

Other

131,246,495

Net sales
Net

sales

53,672,497

343,730

156,820

181,660
12,700

sales

162,586,312

2,455,598

MARKET

Short sales

Total

4,056,643

86,267,691

stock

common

TREASURY

the floor—

purchases

12,317,752

Dividend appropriations:

959,280

1,657,480

Mar. 26

Other transactions initiated

268,620

Mar. 26

sales

4,323,599

51,872,731
(way & structure & equipment)

On preferred

1,589,320

25,183,262

174,904,064

54,328,329

.___

$32,545,878

66,209,154

90,591,290

.___

$108,694,910

21,931,113

——

—-

Ratio of income to fixed charges

277,660

Total

CLASS I

Commission)—

operating Income

income

Federal

MEM¬

specialists in stocks in which registered—
Total purchases
Mar. 26
Other

Commerce

January:

Depreciation

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Total

(Interstate

Net income

sales

Transactions

ITEMS

Miscellaneous deductions from income
Income available for fixed charges

(SHARES):

Total sales
MOUND-LOT

$68,660,177

INCOME

Other income

Total Round-lot sales—
Other

3,280

3,627

Income

Mar. 26

8,460

1,813

Month of

TRANSACTIONS

Short sales

4,393

1,403

Total

Apr;

4,342

1,457

Net railway

Apr.

sales

pounds)—

1,508

SELECTED

purchases by dealers—

Number of shares

FOR

$57,924,956

(l,C0O

Shipped

RYS.

Short sales
Other

Apr;

;

Feb.

Produced

by dealers—

Number of shares—Total sale*

Round-lot

—

1,001,471

Apr.

sales

Shipped
Motes, Grabbots, etc.
Stocks

sales—

Dollar

SEED

(pounds)

Produced

Odd-lot sale* by dealer# (customer*' purchases)t—

COTTON

(pounds)

Stocks

440.2

Number of shares

•

Oil—

Stocks

3.04

397.2

AND

EXCHANGE

(pounds)
Consumption (pounds)

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS
ON N,
T. STOCK
EXCHANGE —SECURITIES

158

(pounds)

100

Produced

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

160

140

development

(pounds Feb.

Refined

3.47

3.30
3.17

401.9

Stocks

Apr.,£9
.Apr.., 9
Apr.' 9

activity-—

125

Oil-

Apr. 15

(tons)

Percentage

enterprises

service

public

building

(tons)

Shipped

365

170

institutional

and

(tons)

Produced

3.00

3.48
r

3.17

Apr.19

ASSOCIATION:

3.13

3.19

3.48

_Apr: 19

COMMODITY

3.12

3.19

Apr. 19
Public

304

Seed—

Crushed
Crude

»pr. 49

Group

water

SEED

Stocks

Apr. >59

Railroad

788

340

public

Received

112.37

Apr. W

corporate

13
658

February:

Apr. 19

Average

245

facilities

other

Cotton

110.88

110.52

Apr. 19

Group

BOND

227

nonresidential

UCTS—DEPT.

104.66

107.62

■

MOODY'S

and

COTTON

110.34

109.60

104.48

Apr. JaB
Apr. 19

Group

109.60

Apr..lA

Baa

114
326

116.02

Apr. 49

Apr/ig

—

All

294

185

Conservation

110.88

112.93

Apr. 49

—.——

96.31

768

building

Miscellaneous

Apr.1

Government Bonds

Average

Highways

12.000c

Educational

29.500c

91.250c

170

29.700c

38.550c

15.000c

Louis)

32.700c

39.275c

91.375c

249

;

35.700c

37.100c

15.000c

building

35.700c

-Apr.-$3

—

105

telegraph

utilities

private

Apr. 13
—

and

Industrial

construction

Apr.,^

142

328

Nonresidential

—

163

Residential

115

recreational

puolic

other

Public

154

165

building

173

198

126

garages

187

Apr. J3

at
Straits tin (New York)
Lead (New York) at
(St.

All

$56.59

$37.50

copper—

refinery

Lead

$56.59

$37.00

QUOTATIONS):

Domestic refinery at

Expcit

$56.59

$37.33

M. J.

and

utilities

Other

$56.59

Scrap steel (per gross ton)
METAL

4.797c

and

Telephone
4.797c

——___

469

186

loft buildings-.

Railroad

198

548

208

and

construction

Public
226

559

Hospital and institutional
Miscellaneous

9,633,000

770

nonresidential

Social

863

950

(noniarm)

1,779

1,034

1,050

$2,567

1,986

1,145

alterations

$2,644

2,151

Reiigious

&
-

lb.)

millions):

Educational
'

9,602,000
DUN

and

Warehouses, office
Stores, restaurants

6,768,000

Apr.'jj$.

—

DEPT.

(in

Nonresidential building

COMPOSITE PRICES:
(per

$2,919

March

39,357,000

$580,160,000

Nonhousekeeping

RESERVE

100

INDUSTRIAL)

93,123,000

$831,165,000

Commercial

C.Sj

10,495,000

93,100,000

Industrial

Additions

steel

41,464,000

between

building (nonfarm)
dwelling units.,

220,816,000

Apr:

INDEX—FEDERAL

AND

shipped

and

construction

New

kwh.)

000

(COMMERCIAL

Finished

272,588,000

56,496,000

$247,401,000
139,367,000
10,204,000
97,231,000
46,600,000

Residential

Apr.

BRADSTREET, INC
IRON AGE

178,487,000

construction

new

ELECTRIC INSTITUTE:

Electric

$235,002,000

182,141,000
12,986,000
235,409,000

$806,968,000

156,706,000

stored

LABOR—Month
Total

OF MINES):

AVERAGE

IIIIII
II—
I_III

Total

133,020,000

(tons)
(tons)

SALES

SYSTEM—1947-4!)

$171,354,000

foreign countries

__Apr.^;

lignite

Pennsylvania anthracite

exchange

Based

98,221,000

.—

BUREAU

and

$149,718,000

31:

Domestic warehouse credits

41,470,000
COAL

and

of March

Domestic shipments

$306,562,000
192,333,000

construction

State

Ago

$178,914,000

BANK

Apr4$$

construction

Public

Year

Month

OUT¬

RESERVE

Exports

ENGINEERING

—

■">

■

construction

Private

ACCEPTANCES

FEDERAL

—

BUILDING CONSTRUCTION—U.

cars)

connections

CONSTRUCTION

NEWS-RECORD:
Total

6,845,300

RAILROADS:

Revenue

„

43,833,000

Distillate

Previou*

$226,836,000

DOLLAR

STANDING

Apr.

(bbls.)

(bbls.)—^
(bbls.)

of that date:

Month

BANK

BANKERS'

Apr.

Crude runs to stills—daily average

Gasoline output
Kerosene output

are as

INSTITUTE:

condensate

42 gallons each)

•

of quotations,

cases

Latest

1,636,000

.«TJ

Apr. 24

or,

either for the

are

Year

§95.5

.-:V

production and other figures for the

cover

Dates shown in first column

that date,

§2,305,000

Apr. 24

castings (net tons)

PETROLEUM

oil

INSTITUTE:

(percent of capacity)

following statistical tabulations

latest week

WINTER

ING

RYE

BOARD

TURE—As

WINTER

CONDITION—CROP

WHEAT

PORTING

April

DEPT.

REPORT¬
AGRICUL¬
83

PRODUCTION—CROP

BOARD

CULTURE—As of April

DEPT.

(bushels)-

RE¬

AGRI¬

662,252,000

—

790,737,000

,40

The Commercial and Financial Chronicle

(1864)

Thursday, April 21, 1955

if INDICATES

Now in

Securities
For

Proceeds—
Underwriter — Reed,

Price—$3.50 per share.

(par $1).

general corporate

l^ear &

purposes.

Automatic Remote Systems,
March

Go., Pittsburgh, Pa.

stock

ce«ds_For

capital
more,

(par 10 cents). Price—$1.15 per share. Proequipment, working capital and general

purposes.

rities Co.,

and general corporate purposes. Office—Balti¬
Md. Underwriter—Mitchell Securities, Inc., same

city.

Secu¬

Underwriter—Southwestern

corporate

Inc.

(par 50
Proceeds—For manufac¬
Receiving Units, working

Sending and

s'.\f

it Bankers Fire & Marine Insurance Co.
April 12 (letter of notification) 15,000 shares of common
stock (par $5) to be offered for subscription by stock¬
holders.
Price—$14 per share.
Proceeds—To increase
capital and surplus. Office—312 N. 23rd St., Birming¬
ham, Ala. Underwriter—None.

Dallas, Texas.

if California Valley Oil Co.
(letter of notification) 50,000 shares of capital
(par $1). Price—$1.25 per share. Proceeds-r-To
two selling stockholders.
Office—530 W. Sixth Street,

Los

Angeles 14, Calif.

from Canadian Breweries, Ltd.
Office — 9400
Ave., Cleveland, O. Underwriter—None.

if Berkshire Realty Co.

For

New York.

March

fice—2C1

Allied Industrial

995 shares of common
(par $100) and $200,000 of 6% 25-year debentures
due May 1, 1980 (in denominations of $1,000 each). Price
—At par. Proceeds—For purchase of real estate for in¬

Development Corp., Dover, Del.

($1 per share). Proceeds—For oil
Underwriter — Paul C. Ferguson &

Price—At par

and gas activities.

vestment

11 filed 800,000 shares of class A common stock
(par $1) to be offered to present and future holders ol
life insurance policies with stock purchase rights;
75,000 shares of class B common stock (par $1) to be

its

concrete wall panels and butUn¬

made of steel reinforced dense concrete, etc.

offered

derwriter—None.
Asbestos

Price

—

general corporate
ment

Co., Ltd.
shares of common stock
cents per share. Proceeds—For

stock, series of 1954.

due

Price—At

working capital.

Electronics,

filed

April

par

Office

loans

Inc.

$1,250,000 of 5%

1967.

Price—100%

retire

Proceeds—To

bank

loans

Bethlehem

($50 per share). Pro¬
—
Charlotte, N, C.

C., and

common

and

accrued

notes

shares of

Co.

and

Minerals

Corp.

share.

stock

Un¬

purposes.

Smith,

Barney

Black Hills Power &

filed

$25,000,000 sinking fund debentures due
March 15, 1980.
Price—To be supplied by amendment
Proceeds—Together with other funds, to redeem $18,700,000 of 7% cumulative preferred stock (par $100) at
$115 per share and prepay $10,000,000 loan from Metro¬
politan Life Insurance Co. Underwriter—Smith, Barney

one

improvements to

new

for

Proceeds—For addi¬

property.

Office

Rapid

—

Corp., Westbury, L. I., N. Y.

Price—To

expansion in Mid-west, to fabricate ad¬
ditional micro-zip machine and
zipper manufacturing
equipment and for working capital.
Underwriter—D.
Gleich Co., New York.

$1.50

share). Proceeds—To Minnette
Prinz, the selling stockholder. Underwriter—Lawrence
& Murray Co., Inc., New York.
Astron

per

Corp.,

East Newark, N. J. (5/2-6)
filed 250,000 shares of common stock
(par 10
cents), of which 200,000 shares are to be sold for ac¬

March 25

count of the company

and 50,000 shares for certain sell¬
ing stockholders. Price—$4 per share. Proceeds—For
expansion program, inventory and working capital. Un¬

derwriter—Van Alstyne, Noel & Co., New York.

Augusta Newspapers, Inc., Augusta, Ga. (5/2)
April 5 filed 40,000 shares of 6% cumulative preferred
stock (par $10) and
50,000 shares of class A common
stock (par $1). Price — To be
supplied by amendment.
Proceeds—To acquire stock of Southeastern
Newspapers,
Inc.; $100,000 to be contributed to capital surplus of

each

five

Price—To

construction

shares
be

and

held;

announced

rights

later.

working capital;

common

common
one

on order from
Douglas Aircraft Co. for delivery
during 1956 and early 1957. Underwriter—F. Eberstadt
& Co., Inc., New York.

•

Bridgeport Brass Co., Bridgeport, Conn.

(4/26)

March 28 filed 202,547 shares of cumulative convertible
preferred stock (par $50) to be offered for subscription
.

by
of
to

common

stockholders

record

April

basis

preferred share for each six shares held; rights
expire on May 10. Price—To be supplied by amend¬
one

ment.

Proceeds—To retire outstanding
long-term debt
(3%% serial debentures, 2V2% notes, and 4%
mortgage
on
Indianapolis plant) and for general corporate pur¬
poses.
Underwriters—Blyth & Co., Inc.; Hornblower &

Weeks; and

Stone

Webster

Securities

New York.

Brown Co., Berlin, N. H.
March 17 filed
$14,217,100 of

Corp.;

all

Collins

and

due

May 15,

$100 of debentures and one share of common stock for
each $5 preference share held.
Price
$100 per unit.
Proceeds—For redemption of $5 preference stock. Un¬
derwriter—None.
—

Browne Window

(letter

Manufacturing Co., Dallas, Tex.
notification)

convertible preferred
of common stock

stock

(par

one

equipment

and

writer—Wm. B. Robinson &
California Tuna Fleet,
Feb.

15 filed

150,000

(par $1) and 150,000 shares
cent) to be offered in units

share of each class.

ceeds—For

Price—$1.16 per unit. Pro¬
working capital.
Under¬
Co., Corsicana, Texas.

Inc.

(amendment) $500,000 of 6% sinking fund

debentures due 1967 and 50,000 shares of
common stock
(par $1) to be offered in units of a $1,000 debenture and
100 shares of stock.
Price—Expected at $1,100 per unit.
Proceeds—For expansion and
working capital. Office—

San Diego, Calif.
Inc., New York.

and

new

and

Thalmann

prepay

Co.,

Co.*
New

Radio

Co.
(4/27)
122,500 shares of convertible preferred
(par $50) to be offered for subscription
by class

filed

class B

common

for

each

stockholders
12

the basis of

held

one

of April
26;
rights to expire on May 11. Price
To be supplied
by amendment. Proceeds
To redeem
presently out¬
standing preferred stock and for working capital. Un¬
as

—

derwriters—Kidder, Peabody & Co.

Underwriter—Barrett Herrick

Co.,

and

White, Weld &

Co., both of New York.
Commonwealth
March 17
tal stock.

—For

Uranium, Inc.
(letter of notification) 7,500,000 shares of
capi¬
Price—At par (one cent per
share). Proceeds

mining expenses. Office
Suite 29, Salt LakeMining Exchange Bldg., Salt Lake
City, Utah.
Underwriter—Trans-Western Brokerage Co., same
—

Stock

city.

Confidential Finance Corp.,
Omaha, Neb
March 11 (letter of
notification) 150,000 shares of 7%
cumulative preferred stock
(par 95 cents) and 15,000'
shares of common stock
(par one cent) to be offered in
units of 10 shares of
preferred stock and one share of
common

stock.

Price

—

$10 per unit.

Proceeds

—

For

working capital. Underwriter—J. J. Riordan &
Co., Inc.*
42
Broadway, New York City.
Consol. Edison

Co. of New
York, Inc.
April 7, 1954, filed $50,000,000 first and
refunding mort¬
gage bonds, series K, due May
1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New
York:
Steam Corp. first
mortgage bonds and $25,000,000 West¬

chester

Lighting Co. general mortgage bonds.
writer—To be determined
by competitive

Under¬

bidding. Prob¬
bidders; Halsey, Stuart & Co. Inc.; Morgan,
Stanley
& Co.; The First Boston
Corp. Offering—Originally set
for May 11,
1954, but was postponed because of market;
able

conditions.

debentures

1975, and 142,171 shares of common stock (par $1) to be
offered for subscription
by holders of "called" $5 cumu¬
lative convertible first
preference stock who have not
surrendered their shares for
redemption or conversion
into common stock.
These holders may subscribe for

April

111.,

new

expire

Proceeds—For

—

aircraft

com¬

(esti¬

Offering—Temporarily

supplied by amendment. Proceeds—To¬
gether with other funds, to purchase seven new DC 70

Proceeds—For

market

Underwriter—None.

if Braniff Airways, Inc.
April 19 filed a maximum aggregate amount of $6,000,000 common stock (par
$2.50) to be offered for sub¬
scription by common stockholders on a pro rata basis.

118,000 shares of 5%% cumulative con¬
vertible preferred stock.
Price—At par ($5 per share).

(4/26)

1,000,000 shares of common stock (par five
Price—$1 per share. Proceeds—For exploration

for

stock

the basis of

Co..

iiieci

—

March 28 filed

—

Vermilye Brothers; all of New York.

each 23

and

Proceeds
For mining expenses. Office — Room
402,
First National Bank Bldg., 15 East First St.,
Reno, N'ev.
Underwriter—Northern Securities, Inc., Seattle, Wash.

Offering—Temporarily postponed.

Price

Font

if Chicago Corp. (5/4)
April 14 filed 672,000 additional shares of
stock (par $1) to be offered for
subscription by
stockholders of record May 2 on the basis of

April

postponed.

American Locomotive Co.

cents).

and development program. Office —
Washington, D. C.
Underwriters—S. D. Fuller & Co.; Peter
Morgan & Co.;

common

ic Bountiful Uranium Co., Reno, Nev.
March 7 (letter of notification)
2,900,000 shares of com¬
mon
stock (par 2Vi cents).
Price—10 cents per share.

cents).

common

Yickers Bros., New York.

(par

Chesapeake & Colorado Uranium Corp.

(par $1) to be offered for subscription by

City, S. D.

stock

•

Dec.

Light Co.
(letter of notification) 10,950 shares of

mining properties of subsidiary and for
working capital, etc. Office—Dover, Del. Underwriter—

mon

Underwriter—Francis

York.

tions

mated at about

President.

Wichita, Kan.

Underwriters—Glore, Forgan

March 1

(5/2)
(par 10<f).

Appell Oil & Gas Corp., Alice, Texas
March 10 (letter of notification)
4,000 shares of

Aircraft Co., Wichita, Kans.
(letter of notification) 1,200 shares of common
stock
(par $1).
Price—At market (estimated at $21
per share.)
Proceeds—To Delbert L. Roskam, Vice15

•

Proceeds—For exploration and de¬

Precision

if Cessna

Feb.

Ladenburg,

Price—$26 per share.

Anchor

if Ceramics industries of Georgia, Inc.
31 (letter of notification)
150,000 shares of com¬
stock (no par).
Price—$1 per share. Proceeds—

Chicago,

International

Co., New York.

Of¬

mon

outstanding notes.

shares held.

improvements.

Co., both of New York.

stockholders

and

North, Braddock Ave., Pittsburgh 8, Pa. Un¬
Safety Appliances Co., same address.

March

new

corporate

Feb. 25 filed 460,000 shares of common

March

subscription by stockhold¬
cents per share).
Proceeds—

(32
facilities

par

plant

com¬

for

derwriter—Mine

May 19.

stock

velopment

additional

general

May 23.

derwriters—Kuhn, Loeb &

for

—

per

Price—At

held about May 2; rights
Price—To be supplied by amend¬

common

Proceeds—For

ment.

interest.

payable;

expire

the basis of $500 of debentures

subsidiaries; and for working capital. Under¬
writers
Van Alstyne, Noel & Co., New York; and
Crowell, Weedon & Co., Los Angeles, Calif.

Price—$1

be offered

stock

ers.

and

Steel

stockholders

for each 25

(4/25-29)
convertible debentures
and

policies of whole

Corp. (5/2)
April 11 filed $191,659,000 3lk% 25-year convertible de¬
bentures due 1980, to be offered for subscription by

American

salesmen,

G. Johnson of Mesa, Ariz., is President.

Johnson, Lane, Space & Co., Inc., Savannah, Ga.
March

insurance

permit-to qualify as a full legal reserve company and
expand into other states. Underwriter—None. Richard

Discount Co. of Georgia

American

life

life insurance, to be offered to the general public. Pro¬
build up capital and surplus of company to

Underwriter—Maine Invest¬

purposes.

Underwriters—A. M. Law & Co., Spartanburg, S.

•

future

ceeds—To

April 15 filed 15,000 shares of 5% cumulative preferred
ceeds—For

and

present

option coupons with and attached to

Co., Ltd.

dr American

district managers and state managers; and 455,208 double

Feb. 17 (Regulation "D") 600,000

fpar $1).

if Catalyst Research Corp., Pittsburgh, Fa.
4 (letter of notification) 644,850 shares of

March
mon

For general corporate purposes.
Underwriter
None.
Roy M. Mundorff, President, will handle stock sales.

Co., Mesa, Ariz.

Feb.

of d% par¬

stock.
Price — At par ($10 per
Proceeds—For working capital. Business—Dis¬

American

Underwriter—None.

Best American Life Insurance

preferred

tributor of prefabricated
resses

Office—1000 Fountain Square Bldg.,

Quincy

—

Amcrete Corp., Briarcliff, N. Y.
■Dec. 6 (letter of notification) 7,500 shares

«sfoare).

resale.

Cincinnati, Ohio.

Co., Houston, Tex.

ticipating

(letter of notification)

stock

April 7 (letter of notification) 300,000 shares of class A
Stock.

Underwriter—None.

Carling Brewing Co., Inc., Cleveland, Ohio
March 15 (letter of notification) 3,803 shares of
capital
stock (par $15) to be offered for subscription by stock¬
holders. Price—$40 per share. Proceeds—To repay loan

^Airborne Instruments Laboratory, Inc. (4/29)
April 15 (letter of notification) 9,026 shares of capital
stock (par $1).
Price—$29.50 per share. Proceeds—To
selling stockholders. Office — 160 Old Country Road,
"Mineola, N. Y. Underwriter — Smith, Earney & Co.,
*

ISSUE

stock

540,000 shares of common stock

Teleac

REVISED *

March 31

Price—$3.75 per share.

ture

Exploration Co., Dallas, Texas
3Jarch 31 (letter of notification) 240,000 shares of com¬

filed

cents).

Advance

mon

Underwriter

ITEMS

•

—Johnson, Lane, Space & Co., Savannah, Ga.

50,000 shares Oi com¬

(letter of notification)

stock

mon

latter; and for general corporate purposes.

Inc., West Newton, Pa.

Admiral Homes,
33arch 28

Registration

ADDITIONS

SINCE

new

date

set.

Consolidated Fenimore Iron Mines Ltd.
Jan. 24 filed 204,586 shares of
common stock
to

offered for subscription
by common
Feb. 7, 1955 at the rate of one

of record

(par $7),

stockholders-

new

each five shares held.

share for

Price—$2.20 per share. Proceedsstock, plus $440,000 to be availablefrom sale of
200,000 shares to Alator Corp. Ltd and
Yam Securities
Ltd., and $175,000 treasury
funds, to be
used to pay for
geological surveys and
metallurgical re¬
search, for drilling expenses and other
general

—From

sale of this

purposes.

corporate

Office—Toronto, Canada. Underwriter—None;
Sudbury Basin Mines, Ltd..

Consolidated

Toronto, Canada
Jan. 31 filed 3,000,000 shares of
common stock
(no par>.
Price—To be supplied
by amendment.
Proceeds
For
exploration and development of
properties. Underwriter
—Stock
to
be
sold
on
Toronto
Stock Exchange or

through

underwriters

selected

States.

Constellation

Uranium

dealers

United

Corp., Denver, Colo.
notification) 2,855,000 shares of com¬
(par one cent). Price —10 cents
per share.
Proceeds—For mining expenses.
Office—206 Mercan¬
tile Bldg.,
Denver, Colo. Underwriter—Bay Securities
Corp., New York. March 22 (letter of

mon

stock

Volume

Number 5422

181

Copper Range Co. ( 5/4)
•
•
April 14 filed 282,464 shares of common stock (par $5)
to be offered for subscription by common stockholders
May 4. The offering 4S Subject, on the basis
share for each five shares held; rights to expire

of record

one

Price—To be supplied by amendment. Pro¬
obligations and fof general corporate

May 18.

retire

ceeds—To

Underwriter

purposes.

Paine/ Webber,

—

Jackson

Corson

March

(G. & W.
filed

Price—To

H.), Inc.

(4/22-25)

40,000 shares of capital stock (par $1).
supplied by amendment. ; Proceeds—To

selling stockholders. Business — Produces chemical
and metallurgical
lime and limestone products, etc.
Office — Plymouth Meeting, Pa. Underwriters — Esta& Co.,. Boston, Mass., and DeHaven &
Greater & Bodine, Philadelphia, Pa.
brook

Townsend,

(par

cent).

one

Price—10

Proceeds—For mining expenses.

Lane, Dallas, Tex.

share.

per

Selected

—

;

cents

com¬

Office—6051 Del Norte

Underwriter

Ltd., Las Vegas, Nev. i/

i*t l

;

•

;

York.;,

—

Ltd., Los Vegas, Nev.
filed

—

the market price prevailing at the time of the sale of
warrants.
Proceeds — For general corporate pur¬

the

Underwriter — American Securities Corp., New
public offering contemplated at this time.

poses.

York.

March

Pa.

(par 10 cents) to be offered for subscription

Price—25 cents

by stockholders.
For

Louisville, Ky. (5/16-20)
(par $1).
shares are to be offered by company
and 29,000 shares by George L. Ohrstrom, Chairman of
the Board. Price—To be supplied by amendment.
Pro¬
ceeds—For new plant and working capital. Business—
Manufacturing lifting and sealing devices. Underwriter
—Cohu & Co., New York.
'
Y
/
March 30 filed 106,208 shares of common stock

(letter of notification) 500,000 shares of com¬

stock

mon

Dover Corp.,

operations and

drilling

704 Erie Ave.,

Price

share and 200,000 shares of such stock.

Proceeds—

share.

per

Office—

capital.

working

which

April 21
Mobile & Ohio
;

Gulf,
*

(Bids

••

EST)

noon

(Offering

Bonds

Jackson

$25,000,000

Riegel

Trading Co. Ltd., the selling stockholder.

$15,000,000

& Co.)

W. Brown Ltd.,
basis."

Common

—

stockholders—underwritten by
& Co.) 190,960 shares

(Offering

193,000 shares

•

Securities)

States

$300,000

Underwriter—
"best-efforts

East Texas Loan

& Investment Co.

Jan. 20

(letter of notification) 25,000 shares of common
stock (no par). Price ■— $10 per share. Proceeds—Fer
working capital. Office—203 East Cotton St., Longview,
Tex. Underwriter—D. G. Carter Investment Co., same

(Thursday)

May 5

Common

Inc.

Toronto, Canada,

Morgan

Stanley

Common

(Paine, Webber, Jackson & Curtis)

(Garden

March

Debentures

Corp

Paper

40,000

Telecasting, Inc
Uranium,

Riegel

Crouter & Bodine)

(Estabrook & Co.; De Haven & Townsend,

Ibex

.Common

282,464

Corp

Paper

(Morgan Stanley

April 22 (Friday)
Corson (G. & W. H.), Inc

Gross

Curtis)

Underwriter—Guss & Mednick.
Utah.
*
1

Dyno Mines, Ltd., Toronto, Canada.
25 filed 1,100,000 shares of common stock
(par
$1). Price—To be related to the current market price
on the Toronto Stock Exchange.
Proceeds—To American

Common

stockholders—underwritten by Paine, Webber,

mining expenses.

Arches Building, Moab,

Co._

Range

Copper

(Thursday)
RR

—For

77,208

it Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capi¬
tal stock. Price—At par (one cent per share)! Proceeds

Renovo, Pa./Underwriter—None.

CALENDAR

ISSUE

NEW

—Debentures

Dayton Rubber Co
Brothers)

(Lehman

$3,000,000

address.

April 25
American

(Monday)
Inc

Electronics,

Debentures

(Van Alstyne, Noel & Co. and Crowell, Weedon & Co.)

Pacific Northwest
(White,

Weld

Securities

(Blyth

Garrett

Corp.

160,000 shares

—Common

(Bids

Bridgeport

Preferred

Corp.)

EDT)

a.m.

(Bids

Bonds

$10,127,350

(Bids

(S.

Fuller

Peter Morgan &
Brothers) $1,000,000

Co.;

(William

Staats

April

(Wednesday)

Common

(Offering

stockholders)

Dover

$200,000

Co.-

Radio

(Offered

Transcontinental

Gas

Securities Corp.)

$15,000,000

(Bids

MST)

noon

Soutti&tn

$2,340,000

-Debentures

Drug, Inc.
Dillon

(Eastman

Jtc

Co.)

/'<Offering

;i:

Minn.

(Smith/Barney & Co.)"$266,267

Hawk Lake Uranium Corp
&

Co.)

(Bids

(Vickers Brothers)

Astron

(General

$460,000

—Common

Corp,
(Van

Noel

Alstyne,

Investing

capital. Business—Produces motion and television films.
Underwriter—Gerard
R.
Jobin
investments, Ltd., St.
Petersburg, Fla.

(Thursday)

June

$600,000

Corp.)

$1,000,000

& Co.)

Common

Consolidated Natural Gas Co

Augusta Newspapers, Inc.—Preferred & Common
(Johnson,

Bethlehem Steel
to

(Offering
Kuhn,

Lane,

Space

Co.)

Stanley

Steel

(Singer,

(F.

Co.)

Illinois

—'—Common
663,469 share*
jt '

Central

Electric

Illinois

(Bids

Gas Co

invited)

$4,000,000

—Bonds
'

' i.

Bonds

Virginia Electric & Power Co
(Bids

to be

$25,000,000

invited)

September

and Shillinglaw,
400,$00 shares

Common

(Tuesday)

(Bids

Utah

invited)

$15,000,000

Invited)

177,500

Common
672,000

offered

for

subscription

common

Price—At par ($50 per share).

;

April 11

Insurance

Co.

(letter of notification)

(par $6)

New

York

25,000 shares of capital

to be offered for subscription by stock¬
rata basis. Rights to

holders of record April 20 on a pro

Price — $10 per share. Proceeds—For
Office—123 Erie Boulevard East, Syra¬
N. Y. Underwriter—None. ,
;

expire May 16.

working capital.

stockholders—underwritten by Glore,
and Ladenburg, Thalmann & Co.)

Forgan & Co.

first

it Equitable Uranium Corp., Aurora, Colo.
April 11 (letter of notification) 1,920,000 shares of com¬
mon
stock (par one cent).
Price—15 cents per share.
Proceeds—For
mining expenses.
Office—1444 Dayton
St., Aurora, Okla.
Underwriter—None.

stock

(Wednesday)

Chicago Corp.-.

Proceeds—
To retire preferred stock and for general corporate pur¬
poses. Underwriter—City Securities Corp., Indianapolis,

Common

Light Co

Power &

Excelsior

Bonds

Utah Power & Light Co

Bolger & Co.)

stock

Ind.-

(Tuesday)

Equitable Securities Co., Indianapolis, Ind.
(letter of notification) 3,000 shares of common

March 24

stockholders.

(Bids

(

$1,500,000

Eberstadt

Co.

stockholders—no underwriting)

June

Preferred

& Scribner)

(Tuesday)
Corp., Inc

(Offering

(Friday)
Co.—

Bell Telephone

(Offering

May 4

738,743 shares

$4,148,625

(O. A.)

May
Sutton

Corp

Deane

-t

$300,000

Texas Instruments, Inc.
J.
Preferred
(Offering to common stockholders—underwritten by

Washington

June

j4Common I j

Co.

(General Investing Corp.)

Morgan

;

...t

stockholder—underwritten by
$1^1,659,000

common

Chemical

stockholders—no underwriting)

(Offering

Debentures

Corp.

Loeb & Co. and Smith, Barney & Co.)

Marlowe

Underwriter—None.

——Debentures

Corp.

Precision

Creek

Silver

Minerals

(Wednesday)

June

International

140,000 shares of com¬
Price—$2 per share. Proceeds

Bonds
$15,000 000

EDT)

a.m.

$300,000

(Monday)
Corp.__Common

May
American

cent).

it Empire Studios, Inc., Orlando, Fia.
April 1 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To re¬
duce bank loans; and for new equipment and working

Power Co

Alabama

Common

(Tuesday)

May 24

■

one

it EMC Recordings Corp., St. Paul, Minn.
7 (letter of notification) 4,000 shares of capital
stock (no par). Price — $15 per share.
Proceeds — For
working capital. Office—806 E. Seventh Street, St. Paul.

Common
\

(par

March

$300,000

Brothers)

(Vickers
|

$40,950,600

Corp. of America

Minerals

29 (Friday)
Airborne Instruments Laboratory, Inc.—-Common

stock

working capital. Business — Re¬
in electronic and other fields. Office
Ave., Brooklyn 3, N. Y. Underwritera
—Standard Investing Corp. and Baruch Brothers & Co.,
Inc., both of New York.

(Wednesday)

May 18

Corp.

(letter of notification)

—For equipment and

underwriting)

stockholders—no

com¬

search engineering

Co.,—L—Debentures

Edison

shares of

—617-33 Brooklyn

$30,000,000

EDT)

a.m.

California

$25,000,000

April

(Dobbs

March 16

(Thursday)

Sterling

Elsin Electronics

Bonds

(Bids

•

April

Denver & Rio Grande Western RR. Equip. Tr. CTs.

Uranium Corp.

Underwriter—Coombs & Co., of Washington, D. C.

Nev.

$750,000

Edison

Ohio
•

(par $1).

per

(par one cent). Price—Two cents per share.
Proceeds—For mining expenses.
Office—c/o The Cor¬
poration Trust Co. of Nevada, 206 No. Virginia St., Reno,

(Tuesday)

May 17

(White, Weld & Co. and Stone & Webster

(4/26)

stock

mon

Corp.__Preferred

Pipe Line

Corp.

2,000.000 shares of capital stock

Elk Mountain

Common

(Barrett Herrick & Co., Inc.)

and

14 filed

106,208 shares

Stewart Oil & Gas Co

stockholders—underwritten by Kidder,
White, Weld & Co.).$6,125,000

common

Peabody & Co.

Preferred

Investment

Electronics

March 18 (letter of notification) 12,500,000

-Common

Corp.
(Cohu & Co.)

Collins

Common

(Monday)

May 16

Trust Co

Clinton

...

(Offering to stockholders—underwritten by Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane) 232,557 shares

$10,000,000

of Ireland

300,000

share. Proceeds—For investment. Office
—San Diego, Calif.
Underwriter—William R. Staats <x
Co., Los Angeles, Calif.

Corp.:—I,*.—

Power

Florida

Common

Co.)

(Thursday)'

May 12

Vermilye

and

Corp

21st St., South, Ar¬

per

Price—$5

Chesapeake & Colorado Uranium Corp.^.Common

Electronics Investment

($1

Dec.

$4,080,000

invited)

filed

•

$20,000,000

EDT)

noon

—

shares of capital stock. Price—At
share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.
6

par

Chicago & St. Louis RR.—Eq. Tr. Ctfs.

New York,

Office—720

Underwriter—None.

Jan.

$12,000,000

Jersey Central Power & Light Co

(Offering to stockholders—underwritten by Blyth & Co.,
Inc.; Hornblower & Weeks; and Stone & Webster
Securities

Proceeds—For machinery, equipment, inventory

Electronics Co.

Lynch/

T—Bonds

Georgia Power Co

(Tuesday)

April 26
Brass Co

share).

12,000 shares of common stock. Price—The de¬
85% of par, and the stock at par ($1 per

lington, Va.

to stockholders—underwritten by
Merrill
Pierce, Fenner & Beane) 182,033 shares

(Offering

Common

(Blyth & Co., Inc.)

1,346,800 shares

Witter & Co.)

(Tuesday)

May 10

Kidder, Peabody & Co.; The Dominion
Union Securities Corp.) $17,220,000
and 287,000 shares of stock

Inc

bentures

and working capital.

Notes & Com.

and

debentures

tures and

Common

Corp.

Inc. and Dean

& Co.,

250,000 shares

Alstyne, Noel & Co.)

Transamerica

$3,150,000

Pipeline Corp

Co.;

Corp.;

Systems,

Ryder

Common
Inc. and Franklin, Meyer & Barnett)

it Eastern Engineering Associates, Inc.
(letter of notification) $102,000 of 4% deben¬

March 24

Common

National Container Corp.-

$1,250,000

(Van

Holly Uranium Corp
(Barrett Herrick & Co..
:
r
.'

(Monday)

May 9

November 9
Southern

Co.

(Wednesday)

(Bids

;

Common

—

invited)

500.000 shares

Fire

Casualty Co., Greer, S. C.
March 11 (letter of notification) 5,000 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record Feb. 14, 1955 on the basis of one share
for each 12 shares held; rights to expire on May i.
Price—$25 per share. Proceeds—To increase capital and
surplus. Underwriter—None.

capital stock (par 25 cents—Canadian) at $1.50

Devonian Gas & Oil Co., Renovo,

Lehman Brothers, New

Dixie

200,000

»
'.

Moab, Utah
;
V v;
Jan. 20 (letter of notificatfon) 3,500,000 shares o{ com¬
mon stock
(par one cent). Price—Five cents per shar£.
Proceeds—For mining expenses.
Office—M. I. C. Bldg,,.
Moab, Utah. Underwriter—Security Uranium Service,
Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.
•

Canada

purchase

the

for

warrants

Diamond Uranium Corp.,

Devon-Leduc Oils, Ltd., Winnipeg,
March

J1"?

Underwriters—None.

Spokane, Wash.

•

(letter of notification) 259,500 shares of common
stock (par two cents). Price—$1 per share. Proceeds—
for mining operations. Office—506 Judge Building, Salt
Lake City, Utah.
Underwriter — Selected Securities

ment. Proceeds—For increased inventories and for work¬

Underwriter

Uranium Co., Salt Lake City, Utah

Desert Queen

Securities

Dayton Rubber Co:/(5/5-6)'
April 15 filed $3,000,000 convertible subordinated deben¬
tures due Dec. 1/1970. Price—To be supplied by amend¬
ing capital, etc.

Underwriter—None.

1051, Tulsa, Okla.

Box

March 28

^Jerred stock, (par one mill) and $20,000 of 5-year 5%
production notes. Price—Of stock, 50 cents pey. share.
Proceeds—For mining expenses. Office—611 ZukorBldg..

Address—P. O.

buy stock for employees at market.

per

Uranium Corp., Dallas, Texas
(letter of notification) 2,850,000 shares of

stock

ployees under Employees' Stock Purchase Plan. Price
market, estimated at $4L25 fcer share. Proceeds—

—At

shares of

Oal-Tox

mon

^ Diadem Mining Co., Spokane, Wash.
(letter of notification) 500,000 shares of pre-

Jan. 26

two

March 24

it Deep Rock Oil Corp., Tulsa, Okla. .
(letter of notification) a maximum of 6,000
shares of common stock (par $1) to be offered to em¬

Feb._18

Curtis, Boston and New York.
•

(1865)-3 41

The Commercial end Financial Chronicle

...

cuse,

Continued

page

The Commercial and Financial Chronicle

(1866)

Continued from page

Gerber

stock

chmmon

West

one

Second

derwriter—I.

3,000,000 shares of
Price—10 cents per

mining

Fidelity Insurance Co.f Mullins, S. C.
(letter of notification) 86,666 shares of com¬
mon stock (par $1).
Price—$1.87% per share. Proceeds
—To increase capital and surplus.
Underwriters—McDaniel Lewis & Co., Greensboro, N. C.; Dietenhofer &
March 25

Heartfeld, Southern Pines, N. C.; and Calhoun
Spartanburg, S. C.
Credit Corp., New

Financial

Flo-Mix Fertilizers

Corp., Houma, La.
Feb. 14 filed 585,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To buy equip¬
ment and for working capital. Underwriter — Tschirn
Investment Co., Delta Bldg., New Orleans, La.
Insurance

Co., Miami, Fla.
v<
March 14 (letter of notification) 3,000 shares of common
stock (par $10). Price—$24 per share. Proceeds—To in- *
crease capital and surplus.
Office—7120 Biscayne Blvd.,
Miami, Fla. Underwriter—None.
*)<

record

May

Lynch,

—

Pierce,

Florida

Kidder,

Peabody &
& Beane.

Fenner

Telephone

Co.,

and

Merrill
*

(par $10)

being offered for subscription by common stockholders
1955, and by certain officers and em¬
ployees; rights to expire April 29. Price—$13 per share.

Fla.

—

For construction program.

Office

Fort Vancouver

Plywood Co.,

and

largest

stockholder,
to

are

for account of C. E.

directors who

offered
not

are

$10

for

per

Mr.

employees at $9.10

account

per

ceeds—For working capital and general

corporate pur¬

GAD

stock

(par

Frontier

Washing¬

ton, D. C.
(Robert)

Co., Inc.
March 28 (letter of
notification) 2,306 shares of pre¬
ferred stock (par $100)
being offered in exchange for

cents).

•

and

be offered

record

for

about

each

four

amendment.

•

held.

Proceeds—To

writer—Merrill
York.

subscription by common
May 9 in the ratio of one

Lynch,

Price—To
reduce

bank

Pierce, Fenner

loans.

about

50,000

Beane,

•
•

Price

—

To be supplied by amendment.

general corporate
&

New

purposes.

(par $5).

Proceeds

—

For

Underwriter—Dean Witter

Co., San Francisco, Calif.
General

Dec.

Utah.

common

stock

(par $1).

share. Proceeds—For plant
expansion, new
inventory and working capital.
Office—

per

equipment,

Huntington Station, L. I., N. Y. Underwriter—S.
ler & Co., New York.
Georgia Power Co.
April

filed

Price—$1.50
etc.

agents.

Heliogen Products, Inc.
(letter of notification) 22,670 shares of common
stock (par $1), of which 12,670 shares are
being offered
for subscription by stockholders up to and
including
June

15, 1955, and 10,000 shares are to be offered pub¬
licly. Price—$5 per share. Proceeds—For working capi¬
tal, etc. Office—35-10 Astoria Blvd., Long Island City,
N. Y.

Underwriter—Smith & Co., Waterville^Me.

D. Ful¬

(5/10)

$12,000,000 of first mortgage bonds due

common

stock

of two preferred

(par 25 cents) to be offered in

and 30

common

shares.

Price—

unit.

Ltd.

stock
Price—$10 per share. Proceeds
capital expenditures. Underwriter—None. Offices
ordinary common

JarmonProperties & Oil Development Corp.;
17 (letter of notification) 30,000 shares of captal
($10 per share). Proceeds—For fur¬
ther exploration and development.
Addres—P. O. Box
1109, Wichita Falls, Tex. Underwriter—John A. Aicholtz
& Associates, 505 Macon St., Fort Worth, Tex., and an¬
Jan.

other.
-<

it Jeannette Glass Co.

■

■;

April 1 (letter of notification) 900 shares of 7% cumula¬
tive preferred stock (par $100), of which 300 shares are
subject of offer of rescission. Price—At market (initial

asking price! $110 per share). Proceeds — To Kirk W.
President. Office—Chambers St., Jeannette,' Pa.

Todd,

Underwriter—None.

it Jersey Central Power & Light Co.; (5/10)
April 14 filed $20,000,000 first mortgage bonds due May
1, 1985. Proceeds—To refund $8,500,000 of bonds; repay
construction. ^Underwriter—To

new

be determined by competitive

bidding. Probable bidders:
Hal^, Stuart & Co. Inc.; Blair & Co. Incorporated; Leh¬
Brothers; Union Securities Corp., Salomon Bros. &
Hutzler and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co.; Kidder, Pedbody & Co.
man

capital.* Office—1625

St.,'New York, N. Y.

St., N.

W., Washington, D. C.

to noon (EDT) on May

of General Public Utilities

office

Corp., 67 Broad

U nder wr i ter—N one.

Junction Bit & Tool

ic Henry Mountains- Uranium Corp., Denver, Colo.
April 1 (letter of notification) 11,000,000 shares of capi¬
tal stock
(par one cent). Price—2V2 cents per share.
Bank

mining
Building,

be made

Clarence

and

expenses^

Office—602

First

Na¬

Denver, Colo.
Underwriter —
through Jack Houlton (Presi¬

Engstrom

(Secretary-Treasurer).

preferred

stock.
restore

District of

Price—At par ($10 per
properties in Georgetown

Columbia.

Office—1700

Holly Uranium Corp., New York
10

cent).

filed 900,000

shares of

share).
area

Eye St., N.
..

W.,

stock

(par

one

Price—$3.50f

ic Homestead Oil & Uranium Co.
April 1 (letter of notification) 5,990,000 shares of
stock

(par

Proceeds—For

one

cent).

mining

Denver,

Price—Five cents

per

Oifice—718

expenses.

Colo.

com¬

share.

Majestic

Underwriter—Carroll, Kirch-

Jaquith, Inc., Denver, Colo.

Bend Uranium, Inc.
(letter of notification) 150,000 shares of com¬
stock (par one cent). Price—$2 per share. Proceeds

exploration and development

10 West 2nd

expenses.

South, Salt Lake City, Utah.

Underwriters

Corp., New York; Lawrence
Y., and Ned J. Bowman Co.,

Uranium, Inc. (Wyo.)
(4/22)
April 1 (letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
and

(April 22).
Industrial

Hardware

which

$2,596,600

expenses.

debentures due March 1,

principal

amount

for

subscription

new

for each

per share to stockholders; and
to public at $6 per share. Proceeds—To

purchase

new plant site*and shop building, and
inventory and working capital.
Office

Fourth Ave., Grand Junction,
lor .& Co., Chicago, 111.

Colo.

^ Jurassic Minerals, Inc.
April 4 (letter of notification)
stock.

mon

by
two

Price—At

801

Underwriter—Tay¬

1,000,000 shares of

(one

par

organizational

to in¬
—

cent

per

com¬

share).

Pro¬

Office — 328 W.
Underwrite:—Petro¬

expenses.

Street, Cortez, Colo:
leum Finance Corp., Oklahoma City, Okla.
ic Kane Creek Uranium Corp.

April* 1 (letter of notification) 6,000,000 shares of capital
stock.* Price—At
—For

par

(five cents

share).

per

Proceeds

mining

expenses. Address—P. O. Box 528, Moab,
Underwriter
Mid-America Securities.
Inc.- of
—

Utah,;26 West Broadway, Salt Lake City, Utah.

King Oil Co., Salt Lake City, Utah

March 31

(letter of notification) 260.000 shares of capital
offered for subscription
by stockholders.

Price—50
and

cents

drilling

Office

—

per

share.

expenses

West

and

Second

Proceeds—-For development
other corporate purposes.

South,

Salt

Lake

City,

Utah.

Underwriter—None.
•

Laan-Tex

March
mon

are

Oil

Corp., Dallas, Texas

(letter of notification)

stock.

Price—At par

outstanding

purposes.

debt

299,0 j0 shares of

($1 per share).

and

for

' Underwriter—Woods

other
&

general

Co.,

com¬

Proceeds—To
corporate

Houston,

Tex.;
Co., and Win. J. Gar¬
Co., all of Dallas, Tex.; J. R. Phillips Investment
Chas. B. White & Co. and John D. Scott & Co.,

First Guaranty Co., C. N. Burt &
rett &

Co.,
all

of Houston,
Antonio, Tex.

Tex.;

and

First

Texas

Corp.,

San

ic Law Investment Co., Washington, D. C.
April 8 (letter of notification) 100 shares of class A stock

.«

Manufacturing Co., Inc.

March 9 filed $3,000,000 of 6%

1975,

development

offered
one

Price—$5.35

after 30 days,

pay

Ibex

exploration

to be

Office—

—James Anthony Securities
A. Hays Co.,
Rochester, N.

Proceeds—For

shares held.

stock

Horseshoe

mon

$1)

(par

stockholders at the rate of

Utah/

March 16

—For

stock

mon

Montezuma

per share.
Proceeds—To exercise
options on properties in Utah and New Mexico.
Underwriter—Barrett Herrick & Co., Inc. and
Franklin,
Meyer & Barnett, both of New York.

mon

Co., Grand Junction, Colo.
(letter of notification) 33,745 shares of com¬

ceeds—For

(4/25)

common

March

crease

Office—Denver, Colo. Underwriter—Garden States Se¬
curities, Hoboken, N. J. Offering — Expected today

and Salomon Bros. & Hutzler
& Co. Inc.; Blyth &

Plantations,

24,900

Bids—Expected to be received

Morgan Stanley & Co.; Ruhn, Loeb &
Co.; Shields & Co.
(jointly); Harriman Ripley
Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT>) on May 10 at the office of Southern
Services,
Inc., Room 1600, 250 Park Ave., New York
17, N. Y.

(jointly);

)

Pecan

filed

Proceeds—Production of pilot films, pre¬
paration for second stock offer, equipment and working
per

Proceeds—To retire bank loans and for construc¬
Underwriter—To be determined
by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lehman
Brothers; Union
Securities Corp. and Equitable Securities
Corp.
tion program.

bank loans and for

• Hemisphere Productions Ltd., Washington, D. C.
April 8 (letter of notification) 4,000 shares of 10% cum¬
ulative callable preferred stock (par $2.50) and
6J,000

amende

stock. Price—At par

(par 10

— For
mining
Go^ Ncw York
Offering—Expected in 10 to 14

selling stock¬

—Natanya, Israel, and New York, N. Y.

share.* Proceeds

per

Underwriter—Dobbs &

be supplied by

(par one Israeli pound).

(4/29-5/4)

Salt Lake City, Utah.

1985.

Israel
Feb.

Office—580 Fifth Ave., New York
Underwriter—E. E. Smith Co., same city.

filed 200,000 shares of common, stock

Proceeds—To

—For

share.

per

Underwriter—Name to

writer—None.

Hawk Lake Uranium Corp.

ner

shares of

Expected

—

& Development Corp.,
Gallup, N. M.
April 4 (letter of notification)' 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—First State Bank
Bldg.,
Gallup, N. M.—Underwriter—Coombs & Co., of Ogden,

Building,

Homes, Inc.

filed 300,000

Price—$5

Offering

"best-efforts basis."

ic Iowa Public Service Co. - ,
( •
?:
April 20 filed 270,220 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record May 11, 1955 at rate of one new share for
each 10 shares held (with an oversubscription privilege).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program.
Under¬

YKV

certain

★ General 6ontrols Co., Glendale, Calif.
April 18 filed 60,000 shares of common stock

shares expected.

May 2.

on a

Fidelity Insurance Co., Dallas, Tex.

ment.

and
other obligations
and for working
Underwriter—Eisele & King, Libaire, Stout &
Co., New York. Letter to be withdrawn; full registration

Feb.

Under¬

Underwriter—Baruch Bro¬

expenses.

Co., Inc., New York,

Price—$6.50

notes

repay

•

development

holders.

capital.

Washington, D. C. Underwriter—None.

new

supplied

Industries, Inc., New York.

150,000 shares of .common stock (par 10
Price—$5 per share/ Proceeds—For exploration

International

—

tive

(par $2)
stockholders

2,500,000 shares of class A non-voting com¬
Price—$1.25 per share. Proceeds—
operating capital for its two subsidiaries,

March 25 filed

(4722)

• Historic Georgetown, Inc., Washington, D. C.
April 6 (letter of notification) 3,000 shares of cumula¬

stock

Corp.

Corp., St. Petersburg, Fla.
Feb. 15 (letter of notification) 31,500 shares of class A
stock (par $1). Price—$7.75
per share.
Proceeds
To

the
common

Finance

Inter American

Gulf Cities Gas

Proceeds—To

(5/10)
April 20 filed 182,033 shares of

March 30 filed 110,000 shares of common stock (no par).

dent)

* Garrett Corp.

Loan

ing stockholders. Office—Lansing, Mich. Underwriter—
Paine, Webber, Jackson & Curtis, Boston and New York.

tional

writer—None.

Sulz¬

thers &

None, sales to

1,237 shares of first preferred stock (par $100) and
1,069
of second preferred stock
(par $100) of Great
Southern Box Co., Inc. on a share-for-share
basis; offer
to expire April 25
(may be extended to June 1). Under¬

Hallowell,

March 21 filed 193,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To sell¬

Proceeds—For

York;

(par $1).

used

(par five cents). Price—$1 per share. Pro¬
mining expenses. Office—1320 Continental
Bank Bldg., Salt Lake
City, Utah. Underwriter—J. E.
Call & Co., Reno,
Nev., and Salt Lake City, Utah.

Telecasting, Inc.

New

writer—None.*

stock

Gross

Inc.,

Western

stock

Co.,

and to finance establishment and operation of additional
loan and finance offices. Office—Phoenix, Ariz.
Under¬

Mining Corp.:

ceeds—For

$25

com¬

cents). Price—$1 per share. Pro¬
ceeds—For purchase of factory and
working capital.
Office—1710 Mount Vernon Avenue,
Alexandria, Va.
Underwriter—T. J. O'Connor and Associates,
Gair

Great

units

Enterprises,

Inc., Alexandria, Va.
March 15 (letter of notification)
260,000 shares of
mon

shares of

Underwriter—Dittmar & Co., San Antonio, Tex.

poses.

mon

Broadway, New York 6, N. Y. Underwriter

March 7

share. Pro¬

Office—55

days.

Blauner

Inland

—None.

City, will act

Doolin, a founder
share; and 10,000

Doolin's

notes

Feb. 17 filed

expenses,

★ Frito Co., Dallas, Texas
April 15 filed 127,500 shares of common stock (no par),
of which 27,500 shares are to be offered to officers
and
employees by company at $9.50 per share; 90,000 shares

Inc., New York).

and

12
(letter of notification) 240,000 units of coownership. Price—$1,000 each. Proceeds—To take title
to property at 82-84 Irving Place, New York, N. Y.

cents).

Vancouver, Wash.

stock. Price—At par
For down payment on

common

($4,500 per share). Proceeds —
purchase price of mill facilities and for other expenses.
Underwriter—John C. O'Brien, one of the promoters.
Statement effective April 4.
> /

to be offered

April

Feb. 21 filed 397 shares of

are

berger & Co., Philadelphia; and Baruch Brothers & Co.,

•

Ocala,

—

Eby company and to pay certain bank
payable of Eby. Underwriters—Milton

36, N. Y.

Underwriter—None.

stock of

^ Gramercy Sire Plan, Inc.

loans

For working capital.

of record April 8,

Proceeds

Price—$34

April 25.

Harley Patents, Inc.
April 6 (letter of notification) 10,000 shares of capital
stock (par 10 cents.) Price—$1.50
per share. Proceeds—

Corp.

March 4 filed 77,350 shares of common stock

share. Proceeds — For general corporate purposes.
Underwriter—A. G. Becker & Conine., Chicago, 111.

Gulf Uranium

basis; rights to expire on May 31. Price—To be supplied
by amendment.
Proceeds—For construction program.
Underwriters

Price—To be supplied

purchase preferred stock of

common

held; rights to expire

per

about

l-ftfr-ld

Proceeds—To

Hugh H. Eby Co., at par; to purchase real estate, ma¬
chinery and equipment, etc.; for the acquisition of all

* Florida Power Corp. (5/12;
April 14 (letter of notification) 232,557 shares of com¬
mon stock (par $7.50)
to be offefed for subscription, by
stockholders

stockholders.

amendment/

common stockholders
of record April 6 at the rate of one new share for each

mon

York

—

common

March 21 ^(letter of notification)* 300,000 shares of com¬

shares of 7% cumulative sink¬
ing fund preferred stock. Price—At par ($2 per share).
Preceeds
For working caiptal. Underwriter — E. J.
Fountain & Co., Inc., New York.

Home

offered first

stock- (par $10)*

20 shares

& Co.;

Jan. 29, 1954 filed 250,000

Florida

Fremont, Mich.

March 18 filed 99,914 shares of common

being offered for subscription by

cents).
operations.
Office
122
South Street, Salt Lake City, Utah.
Un¬
J. Schenin Co., New York.
(par

Proceeds—For

share.

Co.,

...
>■

■

ir Federated Uranium Corp.
March 14
(letter of notification)

Products

Thursday, April 21, 1955

...

and 400 shares of class B stock.
share).

Proceeds—For

Price—At par

inventory

and

($100

working

per

capital.

•

Number 5422

181

Volume

Vermont Ave., N.;W.,

Office—1025

Washington, D. C.

Underwriter—None.
LeBlanc Medicine Co.,

Inc., Lafayette, La.

April 6 filed 1,000,000 shares of common stock (par 10
:ents).
Price—$1 per share. Proceeds—For purchase
of land, plant, warehouse,, office building and equip¬

working capital. Business—Processing, packaging and merchandising of new proprietory
medicine, KARY-ON. Underwriter—None.

privilege);
Price—Expected to be $o.50
per share.
Proceeds—$300,000 to be advanced to Mercast Mfg. Corp., a subsidiary; to finance further devel¬
opment relating to the improvement of the company's
molding iprocesses; Aand the balance to reimburse the
company, in part, for the acquisition of Alloy Precision

it Lcckhart Basin Uranium Corp.
4 (letter of notification) 270,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—2761 Washington

March

Underwriter—Mid-America Securi¬

Blvd., Ogden, Utan.

ties, Inc., Chicago, 111.

& Drilling Co., Inc.

Lone Star Uranium

Underwriter
Co., Las Vegas, Nev.
Dallas, Tex.

BIdg.,

Nichols

—

Christopulos-

Micro-Moisture Controls,

Kirchner &

Rawlins, Wyo. Underwriter—Carroll,
Jaquith, Inc., Denver, Colo.

Mineola, N. Y.

mon

city.

$250,000 of 6%% income

gas

Springs, Ark.

activities.

Office—518 Main

of America

—

Underwriter—Van Blerkom
-

filed

40,000

comulative preferred

($50 par-convertible). Price — $53 per
Proceeds—For construction of plant and working

stock, series C
share.

capital.; Underwriter—Newhard, Cook &
Mo.
offering—Now being made/

par

(one cent per share).

Pro¬

Office—587 — 11th Ave.,
Underwriter—Potter Investment

ceeds—For mining operations.
Lake

Salt

City, Utah.

Co., same city.
Marine Midland Corp.

shares of common stock (par $5)
being offered in exchange for all the issued and out¬
standing capital stock of The Farmers National Bank &
Trust Co. of Rome, Rome, N. Y., at the rate of five shares
of Marine Midland stock for each share of Farmers Na¬
tional stock held of record April 8, 1955. The offer is
subject to acceptance deposit of not less than 80%
shares) of Farmers National. Underwriter—None.

(11.200
State¬

April 6.

(5/2)
March 11 (letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital. Business — To manufacture and
sell a home unit fire extinguisher. Office—17 West 44th
St., New York 36, N. Y. Underwriter—General Invest¬
ing Corp., New York.
Marlowe Chemical

•

Mascot Mines,
Feb.

stock

Co.,

Inc.

Inc., Kellogg, Ida.
200,000 shares of common

(letter of notification)

Office—Grand Junction, Colo.
Brothers,

New

share. Proceeds
Underwriter—Standard Securi¬

(par 35 cents). Price—75 cents per

—.For mining expenses.
ties Corp., Spokane,

Wash.

it Moab King, Inc.
April 4 (letter of notification) 10,000,009 shares of com¬
mon
stock.
Price—At .par (one cent per share). Pro¬
ceeds—For mming'expanses.

Building,

Bank

Office—210 Zions Savings

Bait Lake City, Utah.
Co., same city.

preferred
§tock (par $50) and 5,000 shares of common stock (par
$1) to be offered in units of one share of each class of
Proceeds—For general cor¬
Office—4383 Bandini Boulevard, Los
Angeles, Calif. Underwriter—None.
•

Price—$60 per unit.
purposes.

McRae Oil & Gas Corp.,

March 24 filed

Denver, Colo.

729,174 shares of common stock

(par 10

of which 400,000 shares are to be sold by the
company
and 329,174 shares by selling stockholders.
Price—$4 per share. Proceeds—To repay bank loan of

cents),

$273,00
of

new

other

and a secured note of $384,000; for acquisition
properties and the drilling of wells; and for

general corporate purposes. Underwriters—First
Co., San Francisco, Calif.; and William R.
& Co., Los Angeles, Calif.

California
Staats

(A. L.) Barge Lines, Inc., Jcliet, 111.
March 31 filed $837,252 of instalment note certificates to
be offered in exchange for the 3,578 shares of authorized
and issued common stock of Marine Transit Co. at rate
Mechling

of $234 per share.

offer

The balance of $1 of a

total purchase

cash. The
will be contingent upon acceptance of the
holders of not less than 81% of the Marine

price of $235 per share is to be paid in

exchange

Transit shares.
Mercast

Corp., New York
March 30 filed 83,700 shares of capital stock (par
cents) to be offered for subscription by stockholders
•

record

Underwriter

—

Inc., Moab, Utah

notification) 30,000,000 shares of
capital stock. Price—At par (one cent per share). Pro¬
ceeds
For mining expenses. Office — Archer BIdg.,
Moab, Utah. Underwriter—Guss & Mednick, Salt Lake
28

March

(letter

—

Mohawk

Machines

Business

April 21,

10
of
1855, at rate of three shares for each

Corp.

corporate purposes. Office—944
N. Y. Underwriter—None.
Monarch
28

Halsey St., Brooklyn 33,

Salt Lake City, Utah
notification) 15,000,000 shares

capital stock. Price—At par (one cent per share).
ceeds—For mining operations. Office—430 Judge

Pro¬
BIdg.,
Co.,

City, Utah. Underwriter—Ned J. Bowman

Uranium,

Inc., Denver, Colo.

3,000,000 shares of com¬

(letter of notification)

(par five cents). Price—10 cents per share.
Proceeds—For exploration and development operations.
Office—Ernest and Cranmer BIdg., Denver, Cold;' Un¬
derwriter—Investment Service Co.,

mon

stock

it Morreil (John) & Co., Ottumwa, Iowa
March 31 (letter of notification) 16,009 shares of capital
stock (no par) to be offered in exchange for a like
number of shares of John J. Felin Co., inc., plus a cash
payment.

Underwriter—None.

it Nancy Lee Consolidated Mines, Inc.
March 3 (letter of notification) 30,000 shares of capital
stock.
Price—At par
($1 per share).
Proceeds—For

Office—710 South Fourth Street, Las
Vegas, Nev. Underwriter—H. G. Frese, 1253 San Carlos
Avenue (P. O. Box 787), San Carlos, Calif.
working capital.

it Nation Wide Securities Co., Inc., New York
April 18 filed (by amendment) 100,000 additional shares
of capital stock.
Price—At market. Proceeds—For in¬
vestment.

a.m.

(EDT)

Commonwealth Serv¬
N. Y.

it Pacific Clay Products, Los Angeles, Calif.
April 20 Tiled 94,875 shares of capital stock (par $8).
Price—To be supplied by amendment.
Proceeds—To
Pacific-American
Investors, Inc., Los Angeles, Calif.
(45,000 shares) and Kidder-, Peabody & Co. (49,875
shares).
Underwriter—Kidder, Peabody & Co., New
Northwest

Pacific

(4/25-29)

Pipeline Corp.

March 9 filed $17,220,000

of 6% interim notes due June

1, 1957 and 287,000 shares of common stock (par $1) to
be offered in units of $60 principal amount of notes and
share of stock.

Price—To be supplied by amendment

(expected to be $70 per unit). Proceeds—Together with
other funds, to finance construction of a 1,466 mile
natural gas pipe line between Ignacio, Colo., and Sumas,
Wash,

Underwriters

the Canadian border.

—

White,

also include offering to present stockholders of
1,549,100 shares of common stock $10 per share, without
underwriting.
plans

Payrock Uranium Mining Corp.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price —10 cents per share.
Proceeds — For mining operations.
Office — 901 Texas
Kirchner
•

Junction,

Grand

Ave.,

& Jaquith,

repay

bank

loans;

for

York.

New York

(5/9-13)

April 18 filed 250,000 shares of common stock (par $1).
Price—To be related to the then current market price on
New York Stock

expansion and
Underwriter—Van Alstyne,

Exchange. Proceeds—For

general corporate purposes.

Co., New York.

—

Carroll,

Co., Tampa, Fla.

par)
stockholders
of record April 15 on the basis of one new share for each
five held;
officers and employees' to be entitled to
purchase any unsubscribed shares. Rights will expire
on
May 2. Price—$36 per share. Proceeds—For con¬
struction program.
Underwriters—Morgan Stanley &
Co. and Coggeshall & Hicks, both of New York.
158,203 shares of common stock (no

Philadelphia Daily News, Inc.
(letter of notification) 50,000 shares of common

Feb. 24
stock

of record March 24.

ceeds—For
and

22nd

to be offered for subscription by stock¬
Price—$6 per share. Pro¬

(par $1)

holders

modernization

Arch

and

improvements.

Streets, Philadelphia, Pa.

Office—

Underwriter

—None.

it Producers Uranium Corp.
March 3 (letter of notification) 10,000,000 shares
stock (par one

Proceeds

—

of com¬

cent). Price—Three cents per share,
Offices — 206 North

For mining expenses.

510 Atlas BIdg., Salt Lake
Underwriter—Cromer Brokerage Co., Salt

Virginia St., Reno, Nev., and
Lake

City, Utah.

Public Service Co.
March

National Container Corp.,

Underwriter

being offered for subscription by common

City, Utah.

—

Colo.

Inc., Denver, Colo.

Peninsular Telephone

March 25 filed

machinery and
equipment; and for expansion. Underwriters — Halsey,
Stuart & Co. Inc. and Van Alstyne, Noel & Co., both of

Noel &

May 17 at office of

ices, Inc., 20 Pine St., New York 5,

mon

New

it Ohio Edison Co. (5/17)
^
April 20 filed $30,000,000 of first mortgage bonds due
May 1, 1985. Proceeds — For property additions and
improvements. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Glore, Forgan & Co.,
White, Weld & Co. and Union Securities Corp. (jointly);
The First Boston Corp.
Bids—To be received up to 11

it National Container Corp., New York
April 18 filed $7,000,000 of 15-year sinking fund deben¬
tures due 1970.
Price—To be supplied by amendment.
Proceeds

Underwriters—Irving
H. Bishop & Co.,

1, Minn.

St. Paul, Minn., and M.

March 28

Montezuma

Jan.

J. Rice & Co.,

Co.; Kidder, Peabody & Co.; The Dominion Se¬
curities Corp.; and Union Securities Corp.
Financing

city.

same

St. Paul

Plato Ave.,

Weld &

Uranium Co.,

(letter

Salt Lake

it Northwest Plastics,! Inc., St. Paul, Minn.
1
April 5 (letter of notification) 24,000 snares of common
stock (par $2.50). Price—$12.50 per share.
Proceeds—
To retire bank loans and for working capital.
Office—

one

notification) $175,000 of convertible
three-year notes. Price — At 100% of principal amount.
Proceeds—To reduce accounts payable and other general

March 18 (letter of

March

Proceeds—For general cor¬

share.

porate purposes.

York.

it Moab Mines, Inc., Moab, Utah
March 14 (letter of notification) 3,000,090 shares of capi¬
tal stock (par two cents).
Price—10 cents per share.
Proceeds—For mining expenses.
Underwriter—None.

sam^ city.

Mayfair Markets, Los Angeles, Calif.
March 1 (letter of notification) 5,000 shares of

porate

Under¬

York.

stock.

and

City, Utah.

March 21 filed 70,000

ment effective

working capital.

Moab Minerals,

notification) 20,900,000 shares of com¬

Price—At

stock.

exploration and development expenses

Potter Investment

Canyon Uranium, Inc.

Marble

Feb: 4 (letter of
mon

Co., St. Louis,

oViavoc r,f

mon

ceeds—For

exercised at $12 per

Minneapolis, Minn.

March 31 (letter onenotification) 300,000per share. comshaies of Pro¬
stock (par of
cent). Price—$1
writer—Vickers

Mallinckrodt Chemical Works

March

boratories.
one

(5/18)

com^^';^_d"oSf(\i\t\

400,000 shares of common stock of The Norden La¬
The warrant holders are entitled to receive
share of Norden-Ketay stock for each four warrants

Invest¬

Coming Triumph Capital
Ism" and related expenses.
Office—139 North Virginia
St., Reno, Nev. Underwriter—None, sales to be handled
through Erastus J. Milne, President of the company.
Corp.

stock issuable

pursuant to exercise of 90,000 stock purchase warrants
sold to the underwriters of the public offering in 1951

lishing and printing of "The

Minerals

directly.

Norden-Ketay Corp., New York
March 16 filed 22,500 shares of common

it Milneal Enterprises, Inc., Reno, Nev.
March 3 (letter of notification) 40,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For pub¬

Strike Uranium Corp.
Jan. 4 (letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main
St;, Salt Lake City, Utah. Underwriter—Seaboard Se¬
curities Corp,, Washington, D. C.
f
it Majestic Uranium Corp.
March 10 (letter of notification) 300,000 shares of
mon
stock (par 25 cents).
Price—$i per share. Proceeds
For mining expenses.
Office — 715 Newhouse

and

1,600,000 shares were issued to

dertaken to market their holdings

Springs, Ark. Underwriter—Dewitt
Co., Wilmington, Del.

ment

Lucky

•

(par $1),
Newton-Conroe
Oil Corp. and 800,000 shares to The Phoenix-Campbell
Corp., in exchange for properties. Newton-Conroe is dis¬
tributing its stock to its stockholders in a liquidation. '•
As holder of 51% of the Newton-Conroe stock, PhoenixCampbell will receive about 800,000 shares which it pro¬
poses to offer to the public, together with the 800,000
shares received directly from New Bristol Oils. Price—
At market.
Proceeds—To selling stockholder. Under¬
writer—None, the distributing stockholders having un¬

city.

St., Siloam

Oils., Ltd., Toronto, Canada

Bristol

of which

Underwriter—None.!

Proceeds—For oil

Office—201 Boston Building, Salt

BIdg., Salt Lake City, Utah.
& Co., same city.
;

New

April 11 filed 2,400,000 shares of common stock

(letter of notification) 599,200 shares of com¬
stock (par 10 cents). Price — 50 cents per share.

March

Underwriter—Kastler Brokerage Co.,

City, Utah.

same

226 West 47th

Inc.

Millsap Oil & Gas Co., Siloam

Lake Uranium, Inc., Salt Lake City, Utah
Feb. 9 (letter of notification) 8,000,000 shares of capital
stock. Price—At par (two cents per share). Proceeds—
Lucky

Broadway,

dred, W. Va.

(in units of $100 or multiples thereof). Proceeds—
working capital, etc. Office—22 Jericho Turnpike,

For

New York, N. Y., and Hun¬
Underwriter—Chippewa Securities Corp.,
Street, New York City.

Offices—1501

(subordinated) due Feb. 1, 1965,
initially to stockholders. Price—100% of

offered

par

notification) 1,175,000 shares of com¬

(par 10 cents). Price — 25 cents per share.
Proceeds—For exploration and development expenses.
stock

mon

convertible debentures

St.,

Lake

(letter of notification)

Jan. 13

notification) 2,995,000 shares of com¬
mon
stock (par one cent). Price —10 cents per share.
Proceeds—For mining expenses. Office—507 West Spruce

mining expenses.

None.

equipment, expansion of facilities and working capi¬
Office—2903 E. 79th St., Cleveland 4, Ohio. Under¬

writer—Wm. J. Mericka & Co., same

Uranium & Oil Corp.

Nevada-Utah

March 18 (letter of

tal.

March 25 (letter of

For

writer—None.

^ Metalphoto Corp., Cleveland, Ohio
April 4 (letter of notification) 108,070 shares of com¬
mon stock
(par one cent) to be offered first to stock¬
holders.- Price—$1 per share.
Proceeds—For purchase
of

it National Starch Products Co.
April 15 (letter of notification) 10,000 shares of com¬
mon
stock (par $1) to be offered to employees pur¬
suant to stock options.
Proceeds—For working capital.
Office—270 Madison Ave., New York 16, N. Y. Under¬

oversubscription

March-14^letter of notification) 600,000 shares of com¬
mon stock
(par five cents). Price—50 cents per share.
Proceeds—For general corporate purposes. Underwriter
—Universal Securities Co., New York.

Uranium Co.

Lost Creek Oil &

(with

Castings?
another subsidiary. Underwriter
Metalfits Recovery Corp., Florence, Colo.

April 7 (letter of notification) 570,000 shares of common
stock (par 10 cents). Price—50 cents per share.
Pro¬
ceeds—For mining expenses. Office—1100 Fidelity Union
Life

held

rights to expire on May 5.

and additional

ment;

(1867)

Financial Chronicle

The Commercial and

18 filed 202,431

of Indiana, Inc.

shares of 4.20%

cumulative pre¬

$100 (convertible into common stock
after July 1, 1956) being offered for subscription by
common stockholders of record April 13 on the basis of

ferred

one

stock,

par

preferred share for each 21

shares of common stock
Continued

on page

(1868)

The Commercial and Financial Chronicle

Continued

from

page

Southeastern

Public

Service

Co.

amendment.

Jan. 24
held: rights to expire on May 9. Price—$105 per share.
Procceas—For repayment of bank loans and for prop-

additions.

eity

stock

Electric

& Gas Co.

Dec. 22 filed 250,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans and for construction

York

pro-

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Ottering — Temporarily

Pyramid Life Insurance Co., Charlotte, N. C.
Feb. 15 filed 250,000 shares of capital stock
(par $1) to
be offered for subscription
by common stockholders of
March

record

each

1, 1955 on the basis of
shares held. Any shares

three

scribed
will

one

stock

(no par).

share for stock.

Proceeds

interest therein.

Underwriter—Staniey Cooper Co., Inc.,

Cincinnati, O.

To purchase real estate or

/■'

Feb.

(5/4)
April 13 filed $15,000,000 25-year sinking fund deben¬
tures, due May 1, 1980, and 190,960 shares of common
stock (par $10), the latter to be cffered for
subscrip¬
tion by common stockholders of record
May 3 on a
one-ior-four

basis; rights to expire May 18.
Price —
supplied by amendment.
Proceeds—To redeem
presently outstanding funded debt and preferred stock
be

of company and
its subsidiaries
000 and to help finance the

aggregating

$16,249,expansion of the

proposed

company's Acme, N. C., pulp mill. Underwriter—Mor¬
gan Stanley & Co., New York.
.','//.,/ ■/•
,
Ritter Finance

Co., Inc., Syncote, Pa.

cumulative preferred
(par $50) and 40,000 shares of class
(par $1) to be offered in units of one

stock, third series
stock

preferred share and

10 class B shares.
Price—$75 per
Proceeds—To reduce bank loans and for
working
capital. Underwriter—None. Statement effective Mar. 31.

unit.

Ryder System, Inc., Miami, Fla.

(4/25)

March 28 filed 160,000 shares of common stock
(par $5).
Price—To be supplied by amendment.
Proceeds—To
repay debt to Great Southern Trucking Co., for
equity
investment in Ryder Truck Rental

System,

working
its

capital;

subsidiaries;

and

expansion

Inc.;

for

Underwriter—31yth

York.

(par 10
cent*).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc. Underwriters—R.
Klein

Co.

and

McGrath

Securities

Corp.,

New York.

both

Miguel Uranium Mines, Inc.
Jan. 6 (letter of
notification) 2,000,000 shares of common
ticck (par one cent).
Price—15 cents per share. Pro¬
ceeds—For mining operations. Office
Mineral Bldg.,
Grand Junction, Colo.
Underwriter
Tellier & Co..
Jersey City, N. J.
—

—

^ San

Rafael

liar eh

edmmon

Uranium

(letter
stock.

1'roceeds—For

Co.

Maryland

notification)

Price

—

mining

15,000,000
(one

par

expenses.

cent

share).

per

Underwriter—Lewel-

len-Bybee Co., Washington, D. C.

it Scholz Homes, Inc.,
Toledo, O.
14 filed 180,000 shares of
common stock
(par $1).
supplied by amendment. Proceeds—To
pre¬
pay notes; to establish and
equip new plant; and for in¬
ventories and working
capital. Underwriter
Straus,

April

1 nce—To be

—

EJosser &

McDowell, Chicago, 111.

stock.

Price—At

mining

Tarmington, N.
Denver, Colo.

600,000 shares of

(50

par

cents

per

share).

Office —Taylor

expenses.

Mex.

Underwriter—L

com¬

Pro¬

Bldg.,

^Huey Co'

Silver Creek
March 31 tiled

Precision Corp. (6/1)
$600,000 of 10-year convertible 6% de¬
bentures, due June
30, 1965. Price—At 100% of
principal
amount
(in denominations of $100
each).

Proceeds—

J/7?. working capital
Office

and

general

Silver Creek, N. Y.
vesting Corp., New York.

each

bank

loans

for

and

new

Oils, Ltd.
1,211,002 shares of

corporate

purposes.

Underwriter—General

In¬

Corp., New York
337,830 shares of common stock
(no par)
being offered in exchange for shares
of capital stock of
\ enezuelan
Petroleum Co. in the ratio of

five shares of
Sinclair stock for each
eight shares of Venezuelan stock
lendered for
exchange. The offer will expire on
1S

?llb^'ect t0 deposit

with Chemical Corn

April

least

Mass.

common

rice-—$7 per share.
corporate

Exchange Bank, New York City.

* Sonic Research
Corp., Boston,
April 18 filed 150,0G0
shares of
general

450,000

stock

(par $1).
Proceeds;—For working capital and

purposes.

Co., Boston, Mass.

Underwriter —J. P. Marto

^°^r?er Uranium
Exploration Co.,
March 1 (letter of
notification)

it Transamerica Corp. (5/9)
April 18 filed 1,346,800 shares of capital stock

held,

basis of

March

for possible

1,500,000 shares

mon stock
(par one cent).- Price —20 cents
Proceeds—For' mining

expenses.

per

com¬

share.

Underwriter—None.

(par $2);

Price—To be
common

stock

one

new

ing and other subsidiaries.

—

Underwriters—Blyth & Co.,
Francisco, Calif.

Inc. and Dean Witter & Co., both of San

15;

acquisition of additional oil and

suppiled by amendment. Proceeds—To re¬
bank loans and for additional investments in bank¬

pay

share for

interests; and to meet current liabilities. Office—
Toronto, Canada. Underwriter
Willis E. Burnside &
Co., Inc., New York.
i

Transcontinental

March
stock
To

part

filed

Gas

150.000

Pipe

(4/27)
preferred
share). Price—

Line Corp.

cumulative

(no par—stated value $100 per
supplied by amendment. Proceeds — To finance
of 1955
construction program.
Underwriters-

White,

Weld

Co.

Stone

and

Webster

Securities

Corp., both of New York.

it Tri-State Uranium Co.
March
7
(letter of notification), 4,700,000 shares of
common
stock (par three cents).
Price—Six cents per
share.
Proceeds—For mining costs.
Office—270 South
State St., Salt Lake City, Utah.
Underwriter—Coombs
& Co. of Ogden, Utah. A
v
;
v

it Stancan Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York. *

March 8

•

mon

Sterling Drug, Inc., New York (4/28)
April 7 filed $25,000,000 25-year sinking fund deben¬
tures due April
1980.
Price
To be supplied by
amendment.

Proceeds—For redemption of 3V2% cumu¬
lative preferred stock, payment of funded
indebtedness
and advance to
subsidiary.

Underwriter—Eastman, Dil-

Ion &

Co., New York.

(

■/;/<

{

j..-

■:/.

;;

• Stewart Oil & Gas
Co.; (5/16-20)
March 14 filed 750,000 shares of common stock
(par 100).

Price—$1 per share. Proceeds—To repay bank loan, and
for development of properties and other activities
inci¬
dent to oil and gas operations/ Office
San Angelo,
Texas. Underwriter—Barrett Herrick &
Co., Inc., New

it Tungsten Uranium Mines, Inc.
(letter of notification) 1,200,000 shares of

York.

•

Sun

Hotel, Inc., Las Vegas, Nev.

Feb. 16 filed 760,000 shares of
pfd. capital stk. (par $9.50)
I,o4u,uo0 snares of common capital stock (par 25

cents), of which 680,000 shares of preferred and 1,360,000
are to be offered in units of one
preferred and
two common
shares; the remaining 80,000 shares of pre¬
ferred stock and 180,000 shares of common
stock may
be exchanged for properties.
Price—$10 per unit. Pro¬
shares

purchase property; for construction of
hotel;
working capital; Underwriter—Coombs & Co.,
City, Utah.

and

for

Salt

Lake

Sunshine Park

Racing Association, Inc.

capital.

Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.
• Sutton
(O. A.) Corp., Inp. (5/3)
April 11 filed 400,000 shares of common stock
(par $1),
of which 300,000 shares are to
be for the company's ac¬
count

and 100,000 shares for the
account of CD A. Sut¬
ton, President. Price—To be supplied
by amendment.
Proceeds—For new facilities for
production itif new
central

home

Office—Wichita, Kan. Underwriters—F.
Co., New York; and Shillinglaw, Bolger

stadt

air

conditioning

units

for

and

working

Price—At par (25 cents per share).

com¬

Proceeds

mining expenses. Office—711 Hutton Bldg., Spo¬
Wash. Underwriter — None, sales to be made
through Victor Adelbert Johnson, President of the com¬
kane,

and

pany,

other.

one

1 it Turner Uranium Corp.
April 1 (letter of notification)
stock

mon

Proceeds

(par 2V2

cents).

2,000,000 shares of

Price—10 cents

For

mining operations.
Hall Avenue, Salt Lake City, Utah.
vin G. Flegal & Co., same city.
—

Union Club,

Office

per

—

com¬

share.

130

Social

Underwriter—Mel;

■

•

]

Inc., Hollywood, Calif.

March 1 filed 30,000 shares of preferred stock (par
$50)
and 100,000 shares of common' stock (par $10) to be
offered in
units of three preferred and/10 common

Eber-

& Co,,
-

[

it Telecomputing Corp.
March 3 (letter of
notification) 3,826 shares ofJ capital
stock (par $1).
Price—At market (estimated at
$7.5J
per share).
Proceeds
For working
capital. Office
12838 Saticoy
Ave., North Hollywood, Calif.
Under¬
writer—None, sales to be handled-through officers cf

shares.

Price—$400 per unit. Proceeds—For purchase o^
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales
will be made through agents.
Union Uranium Co.,

Denver, Colo.

March 2 (letter of notification) 10,650,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For mining operations.
Office — 230 East 19th

Ave.,

Denver, Colo.

Underwriter—J. W.

Hicks

Co.,

same

city.

Igniter Corp., Philadelphia, Pa.
(letter of notiifcation) 100,000 shares of class
stock (par 50 cents). Price — $3 per share.
Proceeds—To pay debt, buy equipment and
machinery
and for working capital. Business—Manufactures a new
type of spark plug. Underwriter — Allen E. Beers Co.,
Philadelphia, Pa.
'
'
March

A common

:
1

Universal

Finance Corp., Dallas, Texas
(letter of notification) 27,000 shares of 70-cent
cumulative preferred stock (no par) and 27,000 shares
Feb.

common

one

stock (par 15 cents) to be offered in units
share of each class of stock.
Price—$11 per unit.
Proceeds — For working capital.
Underwriter — J. F.

Perkins

Co., Dallas, Texas.

it Uranium Geophysical Exploration Co.
March 14 (letter of

notification) 7,400,000 shares of

com¬

stock (par one cent). Price—Four cents
per share.
Proceeds—For mining expenses.
Office — 414 Denver

mon

National
Koster

Building,

Co.,

Denver,

same

Colo.

Underwri.er—Floyd

city.

—

company.

•

Texas Instruments Inc.
(5/2)
April 13 filed 165,945 shares of convertible
mon

share of preferred stock for each

held; rights to expire May 19.

plied

common

Price—To be

by amendment. Proceeds
For expansion
working capital. Underwriter—Morgan Stanley &
—

New York.

sup¬

and

Co.,

cents),, of

which

385,000

are

stock

(par

offered

stockholders at the rate of on*
new share for each
4% shares held; and 70,000 sharei
are for account of
certain selling stockholders. Price—Tc
be supplied by
amendment. Proceeds—For exploratior
»nd drilling, and
payment of bank loans and advances

Underwriter—Vickers Brothers, New York,
Tex board,
17

filed

on a

"best ef

(letter of notification) 2,000,000 shares of com¬
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman

Underwriter—Bristol Securities Co., Fall

River, Mass.
■

•r

it Vanadium Queen Uranium Corp.
April

18 filed 845,000 shares of capital stock (par 10
cents), of which 70,000 shares are for the account of sell¬
ing stockholders and 775,000 shares for the company's
account.
notes

Price—$2.50

and

time

—

for

share.

per

exploration

and

Proceeds

—

development

repay

exoenses.

Grand

May.

•

Washington Steel Corp. (5 2-6)
April 12 filed 30,000 shares of cumulative
preferred stock
amendment.

(par $50).

Proceeds

—

Price
For

—

expansion

convertible

supplied by

program

and

working capital. Office—Washington, Pa. Underwriter
—Singer, Deane & Scribner, Pittsburgh, Pa.
Webster

Inc., Dallas, Texas
$1,500,000 of 6% series

Uranium

Mines,

Ltd., Toronto,

Canada

Dec. 30 (regulation "D") 300,000 shares of common stock
A

debentures

due

serially from Feb. 1, 1957 to Aug.; 1, 1961, and $1,000,000
series B convertible debentures due
serially from
Feb. 1, 1962 to
Aug. 1, 1966. Price—To be supplied by
of 6%

stock

foi

common

forts" basis.

Corp., Ely, Nev.

Junction, Colo. Underwrtier—Van Alstyne, Noel & Co., New York. Offering—Expected some

International Sulphur Co.
455,000 shares of common

filed

rubscription by

Jan.

mon

Office

Texas
June

Vada Uranium

St., Ely, Nev.

preferred
(par $25), to be offered for
subscription by com¬
stockholders around May 2 on the basis of one

stock

>
.

U. S.

(Fla.)

Nov. 18 filed $700,000 of 6% convertible
sinking fund
debentures due 1966 and
70,000 shares of common stock
(par 10 cents). Price — 100% and accrued interest for
debentures and $2 per share for stock.
Proceeds—To
repay bank loans, for new construction and
for working

capital.

stock.

—For

—

Quinton, Okla.

gas

stock

Sinclair Oil
March 7 filed

(par $1)
being offered for subscription
a

Underwriters—B. V. Christie & Co. and

Co., both of Houston, Tex.

Tip Top Uranium & Oil, Inc., Denver, Colo.
(letter of notification) 30,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
ceeds—For mining expenses.
Office—1122 Mile, High
Center, Denver 2, Colo. Underwriter—Robert W. Wil¬
son, 1717 East Colfax Ave., Denver, Colo.

Union

rights to expire on
April 12. Price — To stockholders, 50 cents per share;
and to public, at a market
price to be equivalent to last
sale on Toronto Stock
Exchange—65c-75c (ex-rights)
per share. Proceeds—For exploratory and
developmental

term

common

Feb. 1

Pro¬

(letter of notification)

ceeds—For

short

Crockett &

—

Price—$1,050 per share. Proceeds—For
operations. Office—160 West Main St., Grand

(no par).

mining

each

Price

Uranium Mines, Inc.
of notification) 100 shares

(letter

Junction, Colo.

Underwriter—None.

Chicago, 111.

Sfctprock Uranium Corp.

March
mon

for

1955.

ceeds—To

San

debentures

May 17,

stock

Office—70 Pine St., New

and

Samicol Uranium
Corp., Santa Fe, N. M.
Fept. 14 filed 300,000 shares of common stock

$5 of

record

511,002 shares are
by existing stockholders on

Ryder

System and
& Co., Inc., New"

Thorburg
Feb.

excess

—

•

Feb. 24 filed 4,000 shares of 5V2%
D common

16 filed

expenses;

Riegel Paper Corp.

of which

Price—Par for debentures and $100 per
—

basis

retire

Southern

Revere

Realty, Inc., Cincinnati, Ohio
March 8 filed $1,000,000 of 5*/£% cumulative convertible
debentures due Jan. 1, 1980 and 25,0u0 shares of common

near Orange, Tex., for the purpose of
insulation
building
products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.

Underwriter—None.

held

construction.

committee. Price—$3.75 per share. Proceeds—To
expand

Underwriter—None.

the

stock

ceeds—To

remaining unsub¬
days Wowing date of mailing of warrants
disposed of through the company's executive

business.

not

principal amount (in denominations of $100 each).

5, N. Y.

stock

share for

new

owning

Proceds—To construct and operate a manu¬

manufacturing

it Southern California Edison Co. (5/17)
April 19 filed a maximum of $40,950,600 of convertible
debentures due July 15, 1970, to be offered for sub¬
scription by holders of original preferred and common

■r-{^ /.^>/////;\/;;/^

stockholders

8,000 shares of Hamilton stock.

gram.

delayed.

by Hamilton

Thursday, April 21, 1955

facturing plant

Hamilton Gas Corp. capital stock (par $1) on the basis
of 3^> Southeastern shares for each Hamilton share. This
offer shall terminate when offer shall have been accept¬

Underwriter—None.

Public Service

(letter of notification) 28,000 shares of common
(par 10 cents) being offered in exenange for

...

(par 10 cents).
eral

corporate

Price—$1 per share.
purposes.

Proceeds—For genUnderwriter—James Anthony

Securities Corp., New York.
or three weeks.

Offering—Expected in two ^
-

Number 5422

181

Volume

The Commercial and Financial Chronicle

Zonolite

^ Western Development Co. of Delaware
March 14 (letter of notification) 18,773 shares of capital
stock (par $1) to be offered in exchange for 124,165
shares of class A and class B capital stock of ExcaliUranium

bur

rate

each

for

seven

Witter

Underwriter—Dean

Halsey,

Stuart &

Co.

financing.
construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
For last equity financing were The First Boston
Corp*
and Glore, Forgan & Co.

Proceeds—For
will

Morgan

Inc.;

shares of 6% convert¬
exchange for the out¬
standing 136,744 shares of 5^% cumulative preferred
stock, series A (par $100) on the basis of ten shares of

held

Co.,

expire

Community Telephone Co. of Wisconsin

Co., New York.

•

Consolidated
March

the

(letter of notification)
par
($10 per

Price—At

stock.

American

Proceeds—For
working capital. Address—c/o Jacob Abramson, Presi¬
dent, Room 315, Salinas Bank Building, Salinas, Calif.
Wilrich

share).

A9ril

"''"V"''

each

cisco, Calif.

■

common^steck. Price-^At par (one cent per share). Pro¬

Office—Suite 201, 65 East
4th South, Salt Lake City, Utah. Underwriter—Guss and
Mednick Co.,\ same city.

ceeds—For mining expenses.

Winfield

Mining Co,, Moab, Utah.
Jan. 20 (letter of notification) 500,000 shares of common
stock (par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,
P. O. Box 648, Moab, Utah. Underwriter—Security Ura-

(nium Service, K. O. V. O. Bldg., Provo, Utah.
'

W & M Oil

Underwriter

Neb.

—

structure

Keith Walker

Fund, Inc., Baltimore, Md.
Jan. 28 filed 500,000 shares of capital stock. Price—At
come

investment.

Underwriter—In¬

Managers Inc., New York, which is under the di¬

rection

its

President, Pierre A. DuVal, of DuVal's

Consensus Inc.

;

Woodland Oil & Gas

Co., Inc.
Dec. 21 (letter of notification) 299,900 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For equipment, drilling expenses and working capital
Office—42 Broadway, New York, N. Y. Underwriter—

be announced

over

April 7 (letter of notification) 2,900,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—429 Ness Bldg.,
—

Rocky Mountain

Wy-Okla Oil & Uranium Co., Denver, Colo.
29
(letter of notification) 3,000,000 shares of
common
stock (par two cents).
Price —10 cents per
share.
Proceeds — For mining expenses.
Office.— 804
Denver Club Bldg., Denver, Colo.
Underwriter—Car¬
roll, Kirchner & Jacquith, Inc., Denver, Colo., and Rob¬
ert R. Baker & Co., Inc., Fort Collins, Colo.
Wyoming Minerals Corp., Thermopolis, Wyo.
Feb. 16 (letter of notification) 250,000 shares of common
stock.
Price—$1 per share. Proceeds—To pay current
bills and purchase equipment and supplies. Underwriter
—H. P. Jesperson, 2111 Nicholas St., Omaha, Neb.
it Yellow Queen Uranium Co.
April 1 (letter of notification) 1,425,000 shares of com¬
mon
stock (par 10 cents).
Price—20 cents per share.
Proceeds—For

mining expenses. Office—208 First Na¬
tional Bank Building, Denver 2, Colo.
Underwriters —
Peters, Writer & Christensen, Inc., and Mountain States
Securities Co., both of Denver, Colo.

it York Country Farm Produce Co.
(letter of notification) 2,900 shares of common

March 31

Price—At

par

working capital, etc.
N. C.

"('$100

per

share).

Proceeds—For

Address—P. O. Box 282, Rock Hill,

Underwriter—None.

to amount

company. Office—325
Underwriter—None.

commercial

April 5 it

was

Fire

the

stock (no par) to its stock¬
Underwriter—Smith, Ramsay

common

Co., Inc., Bridgeport, Conn.

Offering

debenture

Proceeds—For
and for

issue

Central

April

company

has

year

present

after
plans

announced

was

plans, following

company

proposed reclassification of 524,261! shares of outstanding common stock into 524,261 shares of limited voting
stock

stock,

and

sell

common

some-

524,261

voting common
voting common
bank loans, reimburse work¬

additional

stock. Proceeds—To reduce

limited

ing capital for acquisitions made and for expansion pro¬
gram.
Underwriter—Blyth & Co., Inc., San Francisco
and New York.

•^Denver & Rio Grande Western RR.

(4/28)

Bids will be received by the
company at 201 Rio Grands

Building, Denver, Colo./up to noon'(MST) on April 28
for the purchase from it of $2,340,000
equipment trust

certificates, series T, to be dated June 1, 1955 and to
semi-annually from Dec. 1, 1955 to June 1, 1970,
inclusive.
Probable Bidders: Halsey, Stuart & Co.
Inc.;
Salomon Bros & Hutzler; Kidder,
Peabody & Co.

mature

Detroit Edison Co.

it was announced stockholders on May 2 will
authorizing about $60,000,000 of convertible de¬

Previous offer of convertible debentures

Doman

was

underwriting.

Helicopters, Inc.

Feb. 17 Donald S. B.
holders voted

Waters, President, announced stock¬

increase

authorized capital stock from
1,000,000 shares to 3,000,000 shares in anticipation of
expansion of the company's activities.
UnderwriterPrevious financing handled by Greene &
Co., New York,

it Federation Bank & Trust Co.
April 13 it was announced stockholders will vote ApriL
21 on approving an offering of
58,000 shares of additional
capital stock

(par

$10)

each five shares held.

increase capital

—To

million

concentrating mill, mining

Illinois Electric
was

•

dollars.

equipment

Underwriter—James

basis of

Price—$20

one

per

new

share.

for

Proceeds—

(6/7)

& Gas Cp.

reported company plans to issue and sell

Bids—Expected to be received
Registration—Planned for May 6.
body & Co.

June 7.

and surplus.

—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.

(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.

Kidder, Peabody & Co. (jointly).
Southern National

Bank

April 12 stockholders approved an offering for a period
of 30 days or 200,000 shares of capital stock (par $10)
to stockholders
seven

the basis of two

new

held. Rights will expire on

shares for each

May

18. Price

Proceeds—To increase capital and
Office—Savannah, Ga.

—$30 per share.

about

Underwriters—To

ding.

Corp.

announced

was

1955

Probable

company

$12,000,000
be

determined

bidders:

may

issue and sell

of first

Halsey,

mortgage bonds.
by competitive bid¬
Stuart & Co. Inc.;

Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen& Beane (jointly); Lehman Brothers and
Blyth &
Co., Inc. (jointly); Glore, Forgan & Co.; and The First
Boston Corp.
Ford

Motor

March 15 it
for-1
new

stock

sur¬
«A

Co.,

Detroit,

Mich.

reported that following a probable 10split, an offering of approximately 4,000,000
was

shares will be made to the public.
around $60 per share.
Proceeds

Freedom

Maine Power Co.

31, W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock
par $10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction program. Underwriter

Foundation.

Dec.

Citizens

Power

ner

Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Stone & Webster Securities Corp.; Kidder, Pea¬

Central

Florida

late

$4,000,000 of first mortgage bonds.

plus.

The

April 14 it

issue and

plans

several

underground development.

March 28 it

and

•*{;

it Cavendish Uranium Mines Corp.
April 19 it was announced company
sale

Expected in

—

creation

one

Laboratories, Berkeley, Calif.

bentures.

l-for-8 basis.

approved

maturing later than

made to stockholders without

Bridgeport Hydraulic Co.
March'7 it was reported company plans to offer 22,688

thereof.

Cutter

Price—Expected at $5
share. Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter — Arthur M.
Krensky & Co., Inc., Chicago, 111.
Registration—Ex¬
pected, late in April.
♦

stockholders

additional $25,000,000 of debentures

New York.

Insurance Co.

tentatively-

Underwriter—None.

making any additional borrowings. UnderwritersGoldman, Sachs & Co. and Lehman Brothers, both of

vote

per

date

Lafayette St., New York 12, N. Y.

200,000 shares of common stock.

holders

preferred

indebtedness

Jan.

& Casualty

for

reported company plans to issue and sell

additional shares of

18,

other

finance

Business—A

activities.

offering

Proceeds—Principally to

Continental Can Co., Inc.

$1,000,000)^proceeds—For expansion iK,volume

business

Anthony Securities Corp., New York.

March

stock.

issue,.details of which

future .(expected

near

Wyco Uranium, Inc., Salt Lake City, Utah

City, Utah. Underwriter
Securities, Las Vegas, Nev.

$89,500,000

June.

E. M. North Co., Inc., same address.

Salt Lake

Sell

Income

Proceeds—For

arranged

has

tional funds through a debenture

Blackhawk

Woman's

reduction in over-all interest costs.

it Beaumont Factors Corp., New York
April 20 it was announced company plans to raise addi¬

President.

market.

and

company

securities to banks and institutional investors.

None.

the

will

Co., Lincoln, Neb.

Fep. 25 (letter of*notification)225,000 shares of cdmmon
stock (par $1). Price—$1.30 per share.
Proceeds—For
oil and mining activities. Office—116 S. 15th St., Lin¬
coln,

V; ./'•
F&h. 10 company received ICC exemption from competi¬
tive bidding of up to $345,000,000 of new securities. Pro¬
ceeds—For refunding. Underwriter—-Feb. 16, Howard E.
Simpson, President, announced Glore, Forgan & Co.,
Halsey, Stuart & Co. Inc. and Alex, Brown & Sons have
been engaged to continue studies and formulate plans
looking towards a simplification of the railroad's debt
far,

The

America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co..
Jersey City, N. J.

not to exceed

•

Ohio RR.

Baltimore &

held.

early in June.

Uranium Co., Salt Lake City, Utah '
(letter of notification)
26.750,000 shades * Of

\ Wind River
Feb.

•

»!

(6/2)

being offered for subscription by stockholders of
April 5, 1955, on basis of one new share for each
four shares held; rights to expire on May
10, 1955.
Price—$35 per share,
Proceeds—To increase capital
and surplus. Underwriter—Blyth & Co., Inc., San Fran¬

1,000,000 shares for $455,000. Proceeds—For exploration
and development costs and working capital. Underwriter

for

outstanding bank loans.

April

record

2,000,000 shares of capital stock (par $1),
1,000,000 shares are to be issued in payment
for certain properties to bfe acquired frbm American
Trading Co., Ltd. who will purchase the remaining

•

Co., San Francisco, Calif.
approved proposal to increase au¬

(par $10) from 2,500,000 shares to
Of the additional stock, 556,250 shares

Co.

Consolidated Uranium Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines o£

of stock

holdings

his

scheduled

are

March 24 filed

Trust

stockholders

3,500,000 shares.

of which

thorized capital stock

Petroleum, Ltd., Toronto, Canada

—None.

proportion

Gas

offering up
additional shares of capital stock for sub¬
scription by stockholders on the basis of one new share

•

1,000 shares of capital

Underwriter—None.

Natural

the directors approved a plan for

•for

is¬

(probably on the basis cf $100 of debentures for each
eight shares of stock held). Underwriter—None.

Western Vegetable Industries, Inc.

Feb.

debentures

When

debentures.

convertible

$650,000,000

and

738,743

sued, each stockholder would receive rights to purchase

exceed

exploration and development costs and working
capital. Office—924 Broadway, Denver, Colo. Under¬
writer—Israel & Co., New York.

•

^American Telephone & Telegraph Co.
April 20 stockholders approved a new issue of not to

For

to issue

Madison, Wis.

;

reported company plans

was

(to residents of Wisconsin) 14,000 shares of 53A%
cumulative preferred stock (par $25).
Underwriters—»
Loewi & Co., Milwaukee, Wis.; and Bell & Farrell,
Inc.r

repay

it Western Nebraska Oil & Uranium Co., Inc.
April 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—

sell

Dealer-Manager—Kidder, Peabody

31.

May

new

about

cost

March

5^2% preferred share held. Offer to

stock for each

San

sur¬

Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next

to issue and

Feb. 10 company offered 1,367,440
ible preferred stock (par $10) in

Francisco, Calif.

bidders:

May 20. Price—

expire on

Commonwealth Edison Co.

(5/24)

announced company plans

Alleghany Corp.

stock (par $10)

Price—$27
Proceeds—To retire bank loans and for new

construction.

Co.

Power

was

Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
May 24. Registration—Scheduled for April 27.

April. 15; rights to expire on May 4.

share.

per

new

one

held; rights to

share. Proceeds—To increase capital and
Office—857 Tenth Ave., New York, N. Y.

per

plus.

Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co. (jointly); The First Boston

being offered for subscription by common stockholders
as

Probable

Western Light & Telephone Co., Inc.

March 30 filed 57,092 shares of common

record

$20

$15,000,000 first mortgage bonds due 1985. Proceeds
repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.

funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas.
Underwriter—

& Curtis. Chicago, 111

—To

Hills Inn,

Aurora, 111.

the authorized capital stock (par $10)
shares to 130,000 shares, the additional 10,^
subscription by stockholders
April 15 on the basis of one new share for

000 shares to be offered for

sell

Fort Worth, Texas
;. •
Jan. 31 filed 200,000 shares of capital stock (no par).
Price—$5 per share.:
Proceeds—Together with other

•

increasing

Prospective Offerings
Alabama

(4/27)

announced stockholders will vote April 27

was

each 12 shares

Dec.

New York

from 120,000

—

Schwanz & Co., Inc.,

Clinton Trust Co.,

April 1 it

—

Webber. Jackson

Paine.

III.

Underwriter—None.

it Western Electric Co., Inc.
April 13 (letter of notification) 1,155,000 shares of com¬
mon
stock (no par) to be offered for subscription by
stockholders of record April 12 on basis of one new
share for each 10 shares held; rights to expire on May
27.
Price
$45 per share. Proceeds — For expansion.
Office—195 Broadway, New York.
Underwriter—None.
American Telephone & Telegraph Co. owns 11,528,585
shares (99.81%) of presently outstanding stock.
Western

Co., Chicago,

(letter of notification) not in excess of 18,181
common stock
(par $1).
Price—At market.
To
a
selling stockholder.
Underwriter —

Proceeds

Sena Plaza, or P. O.

Address—65

Corp.

1201, Santa Fe, N. Mex.

Box

March 30

(1869)

Price—Expected
—

the

Ford

Offering—Probably in June.
Insurance

Co., Berkeley, Calif.
reported that company (in process of
organization) plans to sell initially a minimum of $2.000,000 of capital stock at $22 per share. Business
To
write casualty, fire and allied
coverage. President—Ray
March

was

—

Wiser, 2054 University Ave., Berkeley, Calif.
Given

March

Manufacturing Co.
it

was
reported that company may do some
financing in connection with acquisition of Gasinator
Mfg. Co., Cleveland, O. Underwriter—Straus, Blosser &
McDowell, Chicago, 111.

Grace

April 7
to

(W. R.)

& Co.

announced it plans .to sell in May iTp
of convertible subordinate debentures.

company

$30,000,000

Continued

page

The Commercial and Financial Chronicle

(1870)

Thursday, April 21, 1955

'■V

Continued from page

public shortly after completion of the current offering
of 100,000 shares to service station owners and
operator!

shares of common

stock into which the debentures will

Sachs

Underwriter—Goidman,

convertible.

Missouri

Co.,

Bids

■w*;

writer—A. G. Becker & Co.

March

June,
March

(Inc.), Chicago, 111/'

Illinois Bell

connection with the current expansion program.

Feb.

Offering—Expected in May or

common

stock

one

new

Inc.

additional

bonds

present outstanding debentures and
fice—726 Jackson

the

holders

common

stock.

Electric &

was announced

in' series.

State

stock will vote
of

Gas

Electric Power Co.

stockholders

authorized

Public

approved
stock

common

proposal

increase

from

Service

Co.

of Oklahoma

was

reported tnai company plans to issue and
100,000 shares of new preferred stock (par $100;.
Underwriter—To be determined oy competitive bidding.

Probable

bidders:

Harriman

Ripley & Co. Inc. and
(jointly); Smith, Barney'A
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co. OfferingExpected in May or June, 1955.
vZ"
Central

Corp.

holders of the serial preferred

Republic

Co.

Inc.

May 6

proposal to authorize 200,000
preferred stock (par $100) to be issued

Company

on a

plans

raise

about

Puget Sound Power & Light Co.

$21,500,000,'
>>-*■%, $

Of¬

Nov. 11 it

its

plans to

sell

throu!h.th,e ??le. °i new.se«urities,this,year- ^SSSST:
ft.'
ferred stock financing was done privately,
construction program.
2$

purpose!

from

outside

Sources—at

of several million dollars."

least

thfexlent

The company has scheduled

large-scale expansion program, involving $75,000,000
Telephone Co.
in order to;keep abreast of estimated load growth over
Keith S. McHugh, President, announced that
the next five years;
Underwirters—Probably Stone-&
the company will have to raise more than $100,000,000
Webster Securities Corp., The First Boston
Corp. and
<of new capital money to aid in carrying out its expan/ Smith, Barney & Co.
I
sion and improvement program which will cost ap- '
Pure Oil Co7-""j,-'y
>
proximately $200,000,000. Underwriter—For and bonds, Z
April 9 stockholders approved the possible issuance, of
to
be
determined
by competitive bidding.
Probable bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.^
'
*
'■,
$50,000,000 and would be issued at the discretion of the
a

New York

Place, N.W., Washington, D. C. Busi¬

ness—Industrial merchant bankers.
International

York

that the company

stockholders in 1953.

(5/10)

certificates.
Probable bidders:
Halsey, Stuart'&
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Blair & Co. Incorporated.

April 7 it

announced

5,500,000 shares to
10,000,000 shares. Underwriters-»_Dillon, Read & Co. Inc.
and Johnston,
Lemon & Co. underwrote offering to

are

New

Potomac

the

Co.

share for each six shares

Washington, D. C.

debenture

•

April

trust

to stockholders of record

Tf:.T- T

Transportation Co.

was

expected to be received by the company on
May 10 for the purchase from it of $4,080,000 equipment

.•

announced that company plans this
first mortgage bonds due 1985.,

was
some

.New York, Chicago & St. Louis RR.
Bids

reported this Bank plans to offer $500,-

was

Jan. 31 it

-4^ refinance the outstanding $10,000,000 Market Street EleyeatWasted Passenger Ry. Co. first mortgage 4% bonds yrhich
Under^/piaiure op May 1? 1955, Underwriter — Drexel & Co.,
by competitive bidding. Prob0v Philadelphia, Pa.
"
*

(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.

new

International Bank of

March 23 it

People's Finance Corp., Denver, Colo. '
•
'
was reported company plans to issue and sell

Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.

(Texas)

Underwriter—None.

April 6 it

Public Service

writer—To be determined

held; rights to expire on June 30. . American Telephone
& Telegraph Co., the parent, owns 99.32% of the pres¬
ently outstanding stock. Price—At par ($100 per share).
Proceeds—For improvements and additions to property.

000

Orleans

issue

Telephone Co.

the basis of

Underwriter—To be
program.
by competitive bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For-

UoW^^^lwlelphia

Probably A. C. Allyn & Co. Ind, New Yprfc-v-V

tNew

(6/3)
March 29 the company petitioned the Illinois Commerce
Commission for authority to issue and sell 663,469 addi¬
tional shares of

construction

determined

29. stockholders

writer

reported early registration is

was

• gan & Co. (jointly); Kidder^ Peabody & Co.; The First
> t Boston Corp.; Smith, Barney & Co.; Harriman Ripley
indehie&»^«!*w5Wm0OO to vCo.
:
./r

limit'of

able bidders:

Co.

planned
of 500,000 shares of common stock.
Price — Expected
to be about $1.25 per share. Underwriter—Garrett & Co.,
Dallas, Tex.

June 3

ceeds—For

Electric

reported company proposes Issuance and
sale of $7,500,000 of preferred stock later this
year. Pro¬
was

Sulphur Co.

about $500,000 of 6% convertible preferred stock. ProInc., Maiden, Mass.
ceeds—For expansion. Underwriter—Paut C. Kimball'&
increased authorized common
Chicago, 111, > r!
*
2
^? f
Stuck (par $1) frpm 300,000: shares*,(200,100 shares outPeoples Gas Light & Coke Co. '•?
i.
standing) to 400,000 shares. Joseph JL,Quick, President,
April "5 it was reported that the. company plans to offer
said it is contemplated that some financing will
be^^Z-doits common stockholder^ about .$15^000,000 of addiranged during *1955 ' to provide additional
capital^&Jy fional common stock. Underwriter—None.
March

1955.

Humble

Feb. 21

Co.;

National

—

approved the proposed issuance
and sale of $1,500,000 convertible debentures due 1965,
first to preferred and common stockholders at rate of
$25 principal amount of debentures for each three shares
held. Underwriter—None.

1956-1970.

Proceeds—For expansion program. .Underwfitei'—Merrill Lynch, Pierce, Fenner & Beane? New
York, .handled preferred stpek
finapcirig'in 1942.; -

stockholders

•

Halsey, Stuart & Co. Inc.; Salomon

$30,000,000.

Hartford Gas Co.

issue of

Murphy (G. ,C.) Co., McKeesport, Pa.
April 12 stockholders approved ^4>£Qposal to increase
the authorized

debt^guthbrity to $20,000,0007 ,Under¬

Increasing the

Pennsylvania
an

announced stockholders will votb May 10

was

Inc.

...

Co.? Inc: and Salomon Bros. & Hutzler (jointly). Bids—
To be received at office oLj3eekman & Bogue, 15 Broad
.^Street, New York 5, N. Y., up to noon (EST) on ApryjSl.,
Hammprmill Paper Co.

bidders:

Boston Corp.; Kuhn, Loeb &
Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,

Bros. & Hutzler; Blair & Co. Incorporated; Kidder, Peabody & Co. '. Z" •.
Z'. ■••'' ' *'/'* '

-Co.; The First Boston Corp.; Kuhn, Loeb & Co., Blyth &

Feb* 25 it

RR.

are

Probable

Gulf, Mobile & Ohio RR. (4/21)
April 7 it was announced company plans to issue and
sell $25,000,000 of first and refunding mortgage bonds,
series G, due May 1, 1980.
Proceeds — Together with
other funds, to refund existing fixed interest debt. Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Shields &
,

Pacific

expected to be received in April for
$3,765,000 equipment trust certificates due

Registration—Expected late in April.

New York.

Office—Room 717, 141 Broadway, New York 6, N. Y.

authqrizing additional

Stockholders will vote May 10 on

Jan.

Breweries, Inc.

reported company plans to offer publicly
500,000 shares of common stock. Price—$9.50 per share.
was

17,

Proceeds—Together with other funds, to acquire Iro¬
quois Beverage Corp. and Frankenmuth Brewing Co.
Underwriter—Shields & Co., New York.

pected

isthmus

tof
/

Dec.

(Texas)

writer—Garrett &

common

shares.

Under-

of preferred stock.

(par $5)

will

be named later.

soon

420,000

common

Public

Co.

„

and/or

common

stock). Underwriters—Probably

Cent^ar^Repubhc Co. Jlnc.), Blyth & Co., Inc.; and

Merrill Lynch, Pierce, Fenner & Beane.
Keystone Wholesale Hardware Co., Atlanta, Ga.
Northern States Power Co. (Minn.)
Jan. 27 it was stated that the
company plans at a later.
March 29 it was announced that new capital requiredate to offer additional shares for sale
nationally. An
-ments for 1955 will approximate $31,000,000.
Present
offering of 16,666 shares of common stock was recently
plans contemplate these funds will be obtained tem¬
made to residents of
Georgia only at $3 per share.
porarily from short-term bank loans to be repaid from
Office—517 Stephens St.,
S.W., Atlanta, Ga.
proceeds of the sale of additional bonds lqte in 1955 or
ic Lockheed Aircraft Corp. '
early 1956. Underwriter—To be determined'^by competi¬
April 18 it was reported that company may offer about
tive bidding.
Probable bidders: Halsey, Stuart & Co.
$30,000,000 of convertible debentures. Underwriters—
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
Probably Blyth & Co., Inc. and Hornblower & Weeks.
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
it Long Island Lighting Co.
able Securities Corp. and Union Securities Corp. (joint¬
April 19, Errol W. Doebler, President, announced that
as
additional funds will be required to finance conly); Smith, Barney & Co.; Lehman Brothers and Riter
♦

struction, the

company is

650,000 shares of

contemplating the sale of about

common

stock

Bights will again be offered
subscribe to the

new

each

new

Blyth

for

June

to common

early July, !
stockholders to
or

stock, probably in the ratio of
ten

held.

one

Underwriters—

Co., Inc., The First Boston Corp. and W.
Langley & Co., all of New York.

Maine Central RR.
March 22 it was announced

ICC had dropped its com-,
petitive bidding requirement on the
proposed sale of
$1,700,000 of hew 23-year first
mortgage collateral bonds
due 1978. Proceeds—To redeem
approximately $1,400,000
of 5% first
mortgage divisional bonds which were sold
in 1952
through Blair & Co. Incorporated, New
York, and
Coffin & Burr,
Inc., Boston, Mass. May sell these bonds

privately.
Maine Central RR.
Feb. 14, E. Spencer

Miller, President, said company has
the idea of refunding the
$17,000,000 5%%
first mortgage
and
collateral trust bonds due 1978.
Probable bidders for new
bonds may include Halsey,

not given up

Stuart & Co.

Inc.; Kidder, Peabody & Co.; W. C.
Langley
& Burr,
Inc.; The First Boston Corp.;
Lynch, Pierce, Fenner & Beane; Blyth & Co..
Inc.; Glore, Forgan & Co.
&

Co.;

Coffin

Mernll

Majestic Auto Club, Inc.

i?** ^

000 shares

was aunounced

company plans to offer 500,(par five cents) to the motorist and
general

& Co.

(jointly); Glore, Forgan & Co.

Northwest

Nitro-ChemicaIsf}.Ltd.,

Water

Service

r, ;

convertible' preferred

stock

through S. D. Fuller & Co., New York. The |
proceeds are to, be used for expansion and work¬

Co.

Offering—Expected

some

time in May.

Radio Receptor Co., Inc.

Feb.: 28 it
;

reported that a public offering is sOon
about .250,000 shares of common stock? of

was

expected, of

which 100,000 shares will be sold for account of com¬
pany and 150,000 shares for selling stockholders. UnderwriterT^Bache & Co., New York.
'

^ Reading
April 18 it
vote

Co..
was

,-•>

announced stockholders

June

7 will

increasing, the authorized indebtedness of the
company to $125,000,000. Funded debt-at Dec. 31, 1954
totaled
$84,077,350. ,.r. If,, in the future, the directors
on.

should deem

it in the,best interests of the
company to
issue bonds, .the board will determine the amount of the
issue and the. terms and conditions of the bonds. Prob¬

able bidders:

Halsey, Stuart & Co. Inc.; Morgan Stan¬

ley & Co.

it Rheem Manufacturing Co.
April
in

Alberta, Can..
March 4 company plans to issue and*sell publicly deben¬
tures and common stock to finance its proposed chemical
project. Underwriter—Eastman, Dillon & Co., New York.
Ohio

75,000

ing capital.

ferred

Under¬

(par $10)

12, D. H. Mitchell, President/ announced that the
company plans to raise
approximately $12,000,000 of
new money
(which may be done through sale of pre-

Pierce, Fenner & Beane and White, Weld & Co. (joint¬
ly); Glore, Forgan & Co. Offering — Expected before
July 1.

sell

net

Jan.

•

months.

•

Underwriter—East¬

Service

Pyramid Electric Co., Jersey City, N. J.'
*
March 18 it was announced company
plans to issue and

Proceeds—To The Post Publishing

Indiana

the next

writer—Probably Smith, Barney & Co., New York.

be offered to public.1; Price—

Northern

<•

directors any time within

announced

was

,..

Co.

man,

Proceeds—For construction program.

Underwriter—To be determined by competitive bidding.
Probable bidders: The First Boston Corp.; Merrill Lynch,

Gas

Co., publisher of The Boston Post.
Dillon & Co.,'New York.

Co., Dallas, Tex.

Jersey Central Power & Light Co.
Feb. 21 it was reported company plans to sell $5,000,000

Penn
it

stock

reported early registration is planned

was

undertermined number of

North

Sulphur Co.

March 30 it

Offering—Ex¬

' '

in June.

„

14 it

announced

was

registration is planned late

April of 400,000 shares of
Bethlehem Steel Corp.

common

stock.

Proceeds—•

the selling stockholder.

Un¬

derwriters—Blyth
Co., Inc., Kuhn, Loeb & Co. and
Smith, Barney & Co., all of New York.
4
St.

Louis-San

April 11 it

Francisco

announced

was

Ry.

stockholders

will vote May
reported company plans fb/ijssii^.and,". itO-on approving an additional issue of up to $25,000,000
$1,000,000 of first mortgage bonds and -$3g&000 of
of first mortgage bonds, of which it is planned to sell
additional common stock (the latter to stockholders) in
initially $19,500,000 principal amount.
Proceeds —For

March

was

sell

near

future.

burse the

Proceeds—To retire bank loans and

.reimr/-, property additions and improvements. Underwriter—To
be determined by competitive bidding. Probable bid¬

company's treasury for construction expendi-v

ders:

tures.

Oklahoma

Gas

Electric

Co.

Feb. 23 it was reported company plans to issue and sell
$15,000,000 of first mortgage bondsdat^fhis year- Under¬
writer—To be determined by
com|$$j^ye bidding. Prob¬
able bidders: Halsey, Stuart & Cb? Inc., Equitable Securities Corp.; Merrill Lynch, Pierce, Fenner & Beaneand

White, Weld & Co. (jointly); Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston Corp.;
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp. (jointly); Smith, Barney & Co.
Pennsylvania Electric Co.

Feb.

15 it was reported company plans to issue and sell
later this year $9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.

Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First

Halsey, Stuart & Co. Inc.; The First Boston
Corp.;
Corp.; Blyth & Co., Inc. and Harriman
Ripley & Co. Inc. (jointly).

Union Securities

Southern California Gas Co.
Feb. 284t

$40,000,000;
been filed with
emption

reported company plans to issue and sell
of first mortgage bonds.
Application has

was

from

California

Commission

for

ex-

competitive

bidding. Bids received on
last sale of bonds were from Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Securities Corp. (jointly); Lehman Brothers.
Southern
Dec. 30
sell to
stock

Co. (11/9)
it was announced
company plans »
the public 500,000 additional share?

(par $5). Proceeds—To

investment

repay bank Inin additional stock of subsidiary

-Underwriter—To

determined

comP'

issue

*
ns

and

common

and

for

ompanies.
Hive bid-

Number 5422

181

Volume

The Commercial and Financial Chronicle

ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Khoades & Co. and Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Stearns & Co. and Dean Witter & Co. (jointly), tJruon
Securities Corp. and Equitable Securities Corp. (jointly);
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea-

• Trav-Ler Radio Corp.
April 15 it was reported company plans to issue and sell
$1,250,000 12-year convertible debentures with stock
purchase warrants (each $1,000 debenture to be accompamedJay 100 warrants). Underwriters—Lee Higginson
& Co., New York; and Straus, Blosser & McDowell, Chi¬
cago, 111. Registration—Expected in near future.

body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled lor Nov. 9. Registration—
Not expected until Oct. 12.
\

Broadway, New York City. UndjerStout & Co., New
Offering—Expected in June or July.
|

;

writer—Eisele & King, Libaire,

\ |

Southwestern Gas & Electric Co.
Jan.

planning to issue
and sell $6,000,000 of. cumulative preferred stock (par
$100). Froceedsn-To prepay bank loans and lor construc¬
tion program. Underwriters—To be determined by com¬
petitive bididng. Probable bidders; White, Weld &>|Co.
and Kidder, Peabody & Co. (jointly); Lehman Brothers;
Merrill
Lynch, Pierce. Fenner & Beane and Uljiioo
17

reported

was

company

United Aircraft

vote

Ripley & Co. inc.

man

June, 1955.

Sterling Precision Instrument Corp.,
Buffalo, N. Y.
April 14 it was reported company plans to

^ ^:

000

was

reported

bidding.

Sachs & Co.

March 28

ceeds

change in the
are

indi¬

bit of modification in

such thinking.

first
quarter, many of the underwriting
houses
are
now
beginning
to
check into their earnings pros¬

Money is far from "tight." Yet
underlying rates have been har¬
dening as witness the firming up

pects for the balance of the year.
And while there is no tendency

commercial

Having

stand

rounded

out

the

the
outlook, neither is there any real
apprehension over the situation.
But some are convinced, none-the-

12 months
match the 1954 period in

that the

less,

will not
returns

cheer over

and

current

capital.

prove

bank rediscount rates.

"key"

year

some

ap¬

high quarters .lest

business, reflected chiefly in
the automobile and steel lines get

eral

top off right be¬

fore the elections next year.

could

account

slight application of the "brakes."

profits through the balance of the

Demand,Still Slow

berships in
the

Not

given firm* has mem¬

results

the stock exchanges
naturally are better,

long

were

mirroring the rather intense ac¬

barrier.

tivity in trading in those markets.
The rank and file of underwriters

new

in the first quarter,
but with few exceptions the "re¬

level.

made money

For weeks

now

yields

issues have been substantially

above

that

evidently

irritating

were

below ayearago.

But these

investors

are

not in¬

purposes

naturally loom larger as

bonds at 100.096 for

an.

indicated

new

anemic

issues
side

continues

with

number

the

corporations going direct to their
stockholders for needed new capir
tal via "rights" or using

the pri¬

vate placement route.

was

that Gulf, Mo¬

bile & Ohio's offering of $25,000,000 of 25-year

today,

could

bonds, up for bids

prove

but

formulated.

definite

additional

expected to be

are

financing

Underwriters—Expected

Westpan stock

Weld

Co., New York,

bidders.

—

Blyth Group Offers
Pacific Lighting Sfk.
-A group

headed by Blyth & Co.,
offering publicly today
(April 21) 600,000 shares of Pa¬
cific-Lighting Corp. common stock,
(without par value) priced at $40
is

—

agreed

(52.8%).

Underwriter—Union

AND

may

be included

NOTICES

WESTERN

the

DIVIDEND

NOTICES

RAILWAY

North

Roanoke,
NOTICE

Jefferson

Street

Virginia, April 4, 1955
ANNUAL MEETING
STOCKHOLDERS

The Annual Meeting of Stockholders
folk
and
Western
Railway Company

held, pursuant to the By-laws at

the

of Nor¬
will be

AMERICAN VISCOSE

CORPORATION

principal
Virginia.

oliice
of
the Company
in Roanoke,
on'Thursday, May 12, 1955, at 10 o'clock A. M.,

Dividend Notice

to elect four Directors for a term of three years.
Stockholders of record at the close of busi¬
ness

such

1955,
meeting.
14,

Apru

order

the

will

vote

Board

entitled

Directors,
OGDEN, Secretary.

Directors of the American Vis¬
cose

Corporation

meeting
DIVIDEND

NOTICES

clared

METER

COMPANY

Incorporated
1513

Piiiia.

\1/

Fifty

ness

May

27,

of
per

declared

fifty

cents

record

dollar

one

(50#)

per

on the

stock, both payable

common

May 2, 1955,

record

shareholders'of

April 18, 1955.

Capital
Stock
of
June
15,
1955,
to
the close of busi¬

payable

Company,

($.50)

been

dividends

and twenty-five cents ($1.25) per
share on the five percent (5%)

the

stockholders

1955

dividend

Cents

has

their regular

cumulative preferred stock and

STREET

April 20,

quarterly

XilfliJif

RACE

2, Pa.,

April 6, 1955, de¬

the close of business

1955.
W.

ASHBY,

Secretary.

WILLIAM H. BROWN

Secretary

White,

among

COMPANY

for

share.

plana
to in¬

Proceeds to the company will be

used

repay

in full bank

ALUS-CHALMERS

loans

of $8,500,000 used for construction

MFG. CO.
Milwaukee, Wisconsin

finance

and

for

poses.

further

general

construction

corporate

pur¬

to be held

The company has paid dividends

its

common

since 1908.
it

has paid

stock

every

1053,

ALUS-CHALMERS MANUFAC¬

Gas

TURING

hold¬

Supply Co.

stockholders of

COMPANY,

Two With Founders Mutual

■

70th Street
,

with

Founders

Mutual

Depositor

attractive Corp., First National Bank Bldg.

Makers of

Camel, Cavalier and Winston

(Allis-ChalmerB Club

cigarettes

House), West Allis, Wisconsin, on
Wednesday, May 4,1955, at 11:00 A.M.
(Central Standard Time), for the follow¬
ing purposes, or any thereof:
1. To elect

journment thereof.
The

Board

Prince Albert smoking

Board of Directors;

2. To consider and transact any other
business that may properly come
before the meeting or any ad¬

Directors

has

fixed

holders entitled to notice of and to vote
at said annual

(Special to The Financial Chronicle)

DENVER, Colo.—Christopher W.
Binyon and Ervin D. Hoyt are

COMPANY

Delaware

(hereinafter called the
"Company"), will he held at the gen¬
eral offices of the Company, 1115 South
corporation

share each year.
a

TOBACCO

NOTICE IS HEREBY GIVEN, that
the annual meeting of

dividends at the rate

Pacific Lighting Corp. is

May 4,1955

year

Since November,

R. J. REYNOLDS

Notice Of

ANNUAL MEETING OF STOCKHOLDERS

March 15, 1955, as the record date for
the determination of the common stock¬

Gulf Mobile & Ohio

Consensus

aforesaid,

Stock¬

split of

Kuhn, Loeb & Co.; Lehman Brothers; and Clark,

MEETING

cer¬

yield of 3.12%.

Meantime the forward calendar

4-for-l

Sinclair's holdings of Colorado Interstate Gas Co.

NORFOLK

the carrier

clined to budge very much. Tues¬ ing company of public utilities
In fact, it w;ould not be surpris¬
day's offering of $50,000,000 of supplying/natural gas in Southern
ing, TF things do not pick up in Philadelphia Electric Co/s first and California," principally
in
and
the months ahead, if plans of some
Its subsidi¬
refunding, 30-year 3%s reportedly about Los Angeles.
for expansion of their operations
aries are Southern California Gas
got off somewhat slowly, although
might not come in for a second competition for the issue was ex¬ Cq., Southern Counties Gas Co. of
look. Reserves set aside for such
tremely keen. Bankers priced'thej California and Pacific Lighting

current earnings taper off.

Securities Corp., New York, underwrote recent sale of

AMERICAN

approve

shares, part of which

new

been

Pro¬

ex¬

was

the retirement of

of $2.00 per

turns

Competition

yield

Inc.

with the SEC to divest itself of its investment of
384,380

program® of subsidiaries. The bal¬
of the proceeds will be used

ago
institutional
vehemently opposing
efforts of industry to finance it¬
self through the so-called 3% yield
so

buyers

voted

Wesfpan Hydrocarbon Co.

ance

current cycle.

additional shares of com-,

offering to stockholders.

centive.

That

determining whether the Industry
is destined to
work for smaller

Where

(9/13)

reoffering on a basis
somewhere be'twee n
3.50% and 3.60% which they feel
would 'provide real investor in¬

current

the

for

through

Dodge & Co.

Goldman,

that bankers making the success¬

the current lusty upswing in gen¬

and

clude

ful bid would be able to price the

and the more
less general mark up in central

prehension

outstanding fixed term
obligations.
k
v
Market observers were hoping

paper

Presumably there

offered

Morgan Stanley

and

that consideration is being'

some

March 2 it was announced Sinclair Oil Corp. has

is being floated by

bonds

Telegraph Co.

company's stock and the issuance of

have

tain of its

Light Co.

announced

was

April

1,580,000

bills, and

ra^es for bankers'

out of hand

Feeling in such quarters is that
this could

the

of first mortgage bonds due 1985.

finance

stock

Stuart

Ripley & Co. Inc.

operation.

basic situation but there
cations of

Halsey,

pected to be keen.
Carrying an "A" rating, this is¬
sue

15 it

holders

Probable bidders: Halsey, Stuart" & Co. Inc.;

bidding.

So far there has not been any¬

thing to suggest

this

Underwriter—To be determined by competitive

caution prevails at
|

the moment.

with

reported company plans to issue and

was

Western Union

mon

To repay bank loans and for construction pro¬

—

gram.

ample supplyJBut recent events
that direction suggest at least
of

com¬

(jointly).

Mone^ Rates

bit

bidders:

Utah Power & Light Co.

Washington, it is said, is com¬
mitted to keeping money easy and

financing,

Boston Corp.;

(jointly); Harriman

company

that

Probable

The First

Inc.;

sell $15;000,000

debt

some

that

com¬

stock).

Gas

announced

was

given to the issuance of

Co.; White, Weld & Co. and Equitable Securities Corp,

yet, it was announced on

•

March

Underwriter—To be determined by

Co.

plans to sell addi¬
tional first mortgage bonds later to finance cost of new
construction, which is estimated at about $17,500,000.
Underwriter—Dillon, Read & Co. Inc., New York.
15

com¬
construction

com¬

petitive

Texas Gas Transmission Co.
March

Proceeds—For

(including about $35,000,000 to $40,000-,000 of

mon

Underwriter—Dillon, Read & Co., Inc^fNew
\
;
;V'Si

York.

that

announced

through the sale of additional

doing

company plans to issue and
$8,000,000 refunding mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Equitable Securities Corp.; Union Securities Corp.
Offering—Expected before July 1.

year's total financing program reaching about $50,000,-

$85,000,000 new financing might be in the form of
new first mortgage bonds,
(to be placed privately), and
that based upon the assumptions that he was making he
believed that the remainder of the financing would be
accomplished by the issuance of debentures and pre¬
ferred stocks (he did not assume the sale of any cornman stock). Plans for the possible issuance of new secu¬
March

might

pany

sumed

not at all definite as

Presidenjt,

C. McGowen, President, stated

24, N.

sell about

United Gas Corp.
Feb.

—

Washington
Feb.

McGowen,

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.: Salomon Bros. & Hutzlera
White, Weld & Co. Bids—Expected June 7.

of company and of United Gas Pipe Line Co.,
subsidiary. Underwriter—None.

was

tive

program

George T. Naff, President, referred to the pos¬
sibility of some $85,000,000 in new financing when |md
if the company's current application for the reconver¬
sion of the Little Big Inch pipeline and the construction
of the new natural gas facilities is launched.
He indi¬
cated that it was possible that $40,000,000 of that as¬

are

(6/7)
reported company plana to Issue and sell
first mortgage bonds in the near fu¬
Underwriter
To be determined by competi¬

ture..

stock to stockholders.

mon

;

con¬

Virgina Electric & Power Co.
Feb. 19 it

Corp.

the first half of 1955

Jan. 12,

rities

•

24.

For

—

(jointly); Kidder, Peabody
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; The
First Boston Corp. Bids—To be received on
Sept. 13.

corporation plans to raise $35,000,000 to $40,000,000 in

issue,'>$md*

sell $3,000,000 of convertible preferred stock.
Texas Eastern Transmission Con>^

Feb.

'i"
-':4 *"-•

Proceeds

bidding.

$25,000,000

United Gas Corp.

•'If'■

stock.

common

Underwriter-—To be determined by
Probable bidders: Lehman Bro¬
thers; Union Securities Cbrp. and Smith, Barney & Co.

competitive

announced

was

(9/13)
reported company plans public sale of

was

177,500 shares of

stockholders will on April
approving a new issue of 500,000 shares of
preference stock (par $100). Proceeds—To redeem pres¬
ent 5% cumulative preferred stock (233,500 shares out¬
standing), and for working capital. Underwriter—Harriman Ripley & Co., Inc., New York.
26

(jointly); W C. Langley .& Co.; H^rrl*
Offering—Expected in Mayf or

Securities Corp.

struction program.

March

Utah Power & Light Co.
March 28 it

was reported company expects to sell about
$30,000,000 30-year first mortgage bonds late in 1955.
Proceeds—To repay bank loans and for new construc¬
tion. Underwriter — To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman Brothers and Bear,
Stearns & Co. (jointly); White, Weld & Co. and Shields
& Co. (jointly).
' ;

Office—160

stock.

Smith, Barney & Co. (joint¬
ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler;
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); The First Boston Corp.; Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids — To be received
Sept. 13.

Jan. 24 it

ir Southland Frozen Foods, Inc.
April 18 it was reported company plans to offer $630,000 of 6%
debentures and 60,000 shares of common

Union Securities Corp. and

Union Electric Co. of Missouri

1(1871)

meeting

or any

adjourn¬

ment thereof.

By order of the Board of Directors,
W. E. HAWKINSON,
Vice President and Secretary
Dated: March 15, 1955

tobacco

Quarterly Dividend
A

quarterly dividend of 60c per

has been declared

the

Common end New Class B Com¬
mon

stocks of the

Company,

pay¬

able June 6,1955 to stockholders
of record at the close of business

May 13, 1955.
W. J.

CONRAD,

Win$ton-Salem, N. C

April 14, 1955

Secretary

The Commercial and Financial
-53

Chronicle... Thursday, April 21, 1955

(1872)
Treasury money, as
Latin America in

easy

some

BUSINESS BUZZ

the

"cut"

the

swag

keep the whole
the U. S. side

world working on

in the cold war.

Washington.
Behind-the-Scene Interpretations
from the Nation's

,.-r

place of a big open or
bribe,

This

WASHINGTON, D. C.—Ralph
of

make loans in

confronted

remain

would

-whether

Federal official or return to

the

June 17,

man

resignation
was
explained,

The

lit

satisfaction
'

any

tions.

to any dis¬
kind. "Mr.

trative order, and

was

Within

short time the Eisen¬

to have an acute case

ing the

will

such

the

that

Commission

in their comments to
the Budget Bureau on what they
think about the
Commission's

recommendations

in effect, that "we
don't like it," about what the
Hoover Commission suggests.

will

they affect

their agencies.

The

the

question of
what to do about a lot of agen¬
cies that don't want to let go of

by the Commission's

other

Sending

insuring,

money,

business

the

are

subsidies, as the Hoover
mission recommended.
What the answer of the

and

Com¬
White

guaranteeing loans, with an ag¬
gregate

placed

contingent liability
by the Commission at

House will

The Hoover Commission pro¬

ting up

wards

;

ally
The

much

sacred

cow

and

licans

Democrats

gest of the new vested
of the Welfare State.
Or there is the

housing

sparked
backing

dozen

major fronts.
indicates

House

White

tightening

for

and

sub¬

credit, but rather, the
7v., 7"; 7v -.7 77'7,M

sidized
."

reverse.

-alike,
Government Backs

having become one of the big->

government-inspired

Repub¬

among

government-

and

stomach

capital, and REA is genuine-

has, espe¬

guaranteed credit,
embraced the idea enthusiastic¬

for in¬

equal

respecting

insured

than half the true cost of

Hie
•

sum

cially

doesn't
get
"cooperative"

probably

from its so-called

•

sion the White House

The Rural Electri¬

Administration,

stance,

guess.

years ago

posed sweeping reforms to elim¬
inate Federal subsidies, direct
fication

be, will not be dif¬

For, since two
consenting to the set¬
of the Hoover Commis¬

ficult

S244 billion.

and indirect.

the

with

fronted

report on the 104 Federal entities which in one form or an¬

say,

Then, when the reports are in,
White House will be con¬

illustrated

problem

-most aptly

the 7 reply

of most every
Federal agency will consist of
reams of esoteric rhetoric which

sending

of
the
will start

be taken as a certainty

can

New Wage

interests

for the

agreeable to

7.6%

There

effect

strong

un¬

that the
Administration in

Eisenhower

which have
housing boom while
easier housing mort¬

agencies,
a

considerable

dercurrent

example of the

Out

boost

cause

of the

pertinent committees, and

tinos, who ever since they didn't
get their $500 million of several

Republicans, also, want a
pay raise cut out of
the taxpayers' hides, as against
the 7.6% the Eisenhower Ad¬
ministration is willing to stand
for.

10%

:/.-7."77-77^:7v"-..

is pointed

pay
on

dole

backing

handed

feeling

giving

backing

example

organized

not

bitter

some

over

determined

Colorado Oil & Gas

labor

strikes,

Olin Oil & Gas

have

Anheuser Buscli

role of

the
hard

candidly admitted, of course, got
to the redoubtable Jesse P.

Chairman

cott,

Wol-

House

the

this score
available,

tration the $500 million Truman

requested for this purpose.
Wolcott
the

strife

drive

playing

Mr.

brought up
subject before the Banking
just

never

Committee, and the U. S. Treas¬

seemingly

government
time

Banking Committee. The Senate

ury

for

is hence

less

poor

$500

million.

higher wages, and this strife re¬
sults
in
extensive and
bitter

Eagle Oil

influenc¬

and

friends

open-

thought

the

had voted the Truman Adminis¬

labor

the

will

took

the

man

this year the
by the Latinos for

Crash

Galbraith

1929—John Kenneth
Houghton Mifflin

—

Company/Boston, Mass (cloth>

$3.
How

Help

Handicapped

Your

Child—Samuel M. Wishik, M.D.
—Public Affairs Committee,

38th Street, New York

East
N. Y.

(paper) 25c.

16,

Atomic
Energy—Dr. Lawrence R. Hafstad
The Chase Manhattan
Bank, Pine
Street corner of
Nassau, New York 15,: N. Y.
(paper).
.7
-— * —
Application of

Industrial

Pension Plan for Small
—Marc De

Businesses

Goumois, 7-03—154th

Street, Whitestone 57, New

York

(paper).
in Babylon—George

Richest Man
S.

Clason

Inc.,

Hawthorn

—

,Books,

Fifth Avenue, .New
1, N. Y. (cloth), $2.95.
70

TRADING MARKETS

Morgan

Engineering

National Co.

Sulphur
W. L. Maxson Co.

Carl Marks & Co. Inc.
FOREIGN

SCHERCK, mCHTER COMPANY
Member Midwest Stock

$2; (paper, $1.50).
Great

Seneca Falls Machine Co.

Bought—Sold—Quoted

Exchange

L.D.123

Mo.

LERNER & GO.

SPECIALISTS

Investment

HANOVER 2-0050

GArfield 1-0225

Louis 2,

SECURITIES

50 BROAD STREET

TEL:

320 N. 4th St.
St.

Irving-on-Hudson, N. Y. (cloth)

Riverside Cement B

.Wagner Electric

SL 456

Inc.,.

Education,

Economic

for

who

Hugo ton Production

Teletype

(paper).

Government—An Ideal ConceptLeonard E. Read — Foundation

chin

the

blows struck

impartial mediator, for it,

the

Mallinckrodt Chemical

Bell

City

York

was

Transmission

Pan American

Treasury Secretary Humphrey

apparently

Valley Gas

Texas Eastern

of Basic

son

Martin

—

writing, to Congress.
If

most

Ad¬

of the

made

been

the

Word of this intention, not so

;!
i

give Federal workers group
insurance
as
well, al¬

had

that

was

ing Latin governments.

it has been widely re¬

with

winning

ported, the Eisenhower Admin¬
istration will back some scheme

the, details
ministration's plan

idea

would

back,

Last year the
got
legislation

though

Latin-American

The

million to

Bank, which had been
pretty careful about setting up
»loans so it would get the money

Federal employees group
insurance at a nominal cost.

life

Ex-Im

to give

This year,

Caracas,

out

loans.

"fringe" benefits.
Administration

confer¬
Secretary

Bank would get $500

substantial

nicely

Marshall went

postwar

State, he allegedly agreed to
see
to
it
the
Export-Import

to get more money.

also

there

the

Compari¬
Provisions—Franz
Joseph—Matthew Bend¬
Company, Inc., New York
Treaties: A

Tax

Death

raise for its own .employees
the
eve
of the
organized

Furthermore, the government

one

ences

out, that the govern¬

labor pitch

When General

remains, it

ment is backing one

have been sore.

years ago,

However, the fact

Corp.

Finance

right out on the beam. It
was planned
as a very modest
boondoggle to throw to the La¬
comes

many

clean

proposed

Bank, the

International

leadership

the Democratic

week

last

announced

World

the

has

Beam

raised the
pay of the military.
The em¬
ployee pay raise is held up be¬
and

employees,

develops

Miss.

IFC Plan Comes

health
-

White

r,i-

benefits.

the pay of Federal

"fringe"

and

increase

large

a
,

7 For the Eisenhower Adminis¬
of

the Stock

itself, is setting the example of

substantial

in 1955, even if

guaranteed annual wage.

tration

Round

wages

example is not one directly

the
It

recommendations

Hoover
/'

raise in

or so, now,

affected by

agencies

many

the

week

it IS

does it make if

still say a real gentleman would offer
a lady his seat!"

labor's demand for a

Administration.

of the Hoover Commission.
a

Exchange?—I

probably less than routine with
Mr. Hughes, however, for he is
one of the
conservatives of the

conscience on whether
take seriously the ideas

For within

difference

"What

Hence
directive is routine. It is
House.

White

the

for

going
of consultis

Administration

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

not the
case.
The Budget bureau is the
initial chore boy and sorter out

Agencies Face Reckoning

hower

flect the "behind the scene" inter¬

however,

this,

but

ob¬

(This column is intended to re¬

would suggest
is backing
Commission 100%,

Hoover

the

out

runs

ever

jects on which to spend money.

that the White House

explained.

the IFC, if rati¬

ernment

which would

directive

This

require legislation.

making
government or
returning to the practice law,"

years" of its operation.

provide a handy gadget for use
dispersing taxpayer resources
when and if the Federal Gov¬

recommenda¬
tions could be put into effect by
Executive or internal adminis¬

out of

career

agencies

the

ask

market
raise

sufficient number of
countries to get it going, would

fied

these

which

have to decide between
a

the early

also

directive

the

appears

securities

All the same,

effect

the

into

its

investment funds "during

•

not

sell

and

asking
them
to
comment upon these recommen¬
dations in relation to their func¬

thought he would

Demmler just

would

sent out a direc¬
agencies the subject
Hoover Commission recom¬

mendations,

not due,

was

and this em¬

—

tive to all

practice

expects to return to the
£>f law in Pittsburgh.

Furthermore

phasizes the limited character
of the operation — the World
Bank announced that the IFC

the Director

of the Budget,

He had been

1953.

would

Reports

Rowland Hughes,

member of the law firm of
Heed, Smith, Shaw and McClay
of Pittsburgh. He is planning a
long vacation when J. Sinclair
Armstrong, a former Chicago
lawyer, is confirmed as his suc¬
cessor.
After his vacation, he

private enterprise. The
capital of the IFC
be $100 million, but it

maximum

probably wouldn't raise more
than $75 million if ratified.

Budget Asks

signed as Chairman of the SEC.
Mr. Demmler became Chair¬

"receiving"

to foster

eral risk.

practice of law, and so decided
In favor of the latter and re¬

individuals,

the

country or in the United States,

repayment.
The
Commission
widely
criticized
the looseness of housing loans
and the broadness of the Fed¬
of

terms

individuals who
the question of

unique

those

private

whether

with longer and long¬

will be modest.
partner¬

agency

with

ship

less

and

less

for

loans

gage

down and

pro¬

President Eisenhower.

It will

"H. Demmler is said to be one

the

comes

International Finance
Corp., approved in advance by

posed

And You

Capital

covert

TELETYPE NY

1-971

10 Post Office Square,
Telephone
HUbberd 2-1990

Securities

NEW YORK 4, N. Y.

Boston 9, Mass.
Teletype
BS 69

Full text of Commercial and Financial Chronicle : April 21, 1955, Vol. 181, No. 5422

FRASER