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UNIVERSITY
OF MICHIGAN
ESTABLISHED 1S39
1952
APR 25
T/ie Commercial
BKtNBS ABMtttiSTRATIM
LiBIABY
Financial
<L
an
Chronicle
Reg. U. S. Pat. Office
Volume 175
Number 5110
New
Price 40 Cents
York, N. Y., Thursday, April'24, 1952
a
Copy
EDITORIAL
Let's Have
We See It
As
Investment
Long
Range Foreign Policy!
The question as to whether the President in
fact has any such powers as he has undertaken
to exercise in the steel case will not, we
assume,
a
"Private Placements"
By MILTON C. CROSS*
By LT. GEN. LESLIE R. GROVES*
Executive Vice-President, Ilarriman Ripley & Co. Inc.
Vice-President, Remington Rand Inc.
Criticizing
be
foreign policy
not be made for
months or even years. What recourse the steel
companies have meanwhile to protect what most
of us have always supposed were their
legitimate
After
"completely in
objectives," Gen. Groves pleads for
a
definite long-range policy, instead of a day-to-day
policy, "dictated by moves and feints of an untrust¬
worthy, unscrupulous enemy." Says our international
relations have been impaired by United Nations, which
"has always been solicitous of Russia," and expresses
doubt billions poured into Europe will produce beneficial
officially and definitely determined until the
Supreme Court has spoken. If the process of
getting the matter before that high court is as
tedious
and
tortuous
termination
of
this
it
as
issue
often
may
is, such
results either
interests and
rights, remains to be seen.
of all this we can
only say that if the Chief Executive has any such
powers as this, and, a fortiori, any such powers
As to the technical aspects
as
he
the
Constitution of
what
mean
or
to think he has over the
press,
seems
what
we
the
have
we
United
States
Foreign
not
always supposed it meant
certain the authors of that docu¬
are
ment intended
mean.
If the people of this
country do not have the protection that they had
always thought they had, they can not afford to
it to
lose any time
Constitution.
terpretation of
What
we
more
at
stake than
policy,
also.
the
vested
in him
has
the
the people of the United
this
nation
must
authority
the
which
shoulders
will
or
not
Continued
put
to
domestic
off
face
by
facts.
Continued
47
PICTURES
IN
Traders
address
Chartered
THIS
Life
ISSUE
Association
DEALERS
of
shrug
The
on
—
in the
to
of the capital
such matters,
perplexities
some
of
Continued
49
Pictures
address
ference
Chapter,
April
of
21,
Municipal
R. H. Johnson & Co.
Established
Controllers
1952.
,
taken at the 16th Annual Dinner of the Security
York, Inc., at Waldorf-Astoria
Special Section starting
on
page
on
April
18,
appear
25.
STATE
Oil
SECURITIES
Williamsport
Washington, D.
Allentown
C.
NATIONAL BANK
Hawaiian Securities
Sherritt Gordon
BONDS & STOCKS
Mines, Ltd.
Head Office:
Direct Private
in
India, Pakistan,
Ceylon,
Aden, Kenya, Tanganyika,
Uganda; Zanzibar, and Somali-
Wires
Bought
Burma,
Paid-up
Reserve
Capital
£4,562,500
14 Wall
Capital_.^__£2,281,250
Fund
conducts every description
banking and exchange business.
Trusteeships and Executorships
also
undertaken
&
Sold
—
Members of
of
and
San
Francisco
&
Co.
DonraoN Securities
GrPORATIOTI
Principal Commodity
•
Boston
Los Angeles
•
MEMBERS NEW YORK STOCK EXCH.
•
40
Chicago
115 BROADWAY
Honolulu
NEW
wi
Power Company
YORK
upon
request
DEPARTMENT
Goodbody
Security Exchanges
YORK
El Paso Electric
Analysis
Co.
Street, New York, N. Y.
BANK
CITY OF NEW
Quoted
ESTABLISHED 1891
£3,600,000
The Bank
—-
CANADIAN
Dean Witter
OP THE
+»
26, Bishopsgate,
London, E. C. 2
Branches
NATIONAL
Spokane
Angeles
CANADIAN
Natural Gas Co., Ltd.
in
Protectorate,
Los
Denver
Peace River
Pacific Coast &
of INDIA. LIMITED
Uganda
Salt Lake City
Dept. Teletype: NY 1-708
Exchanges
New York
50 Broadway
Bond
THE CHASE
1915
Members of all Principal
OF NEW YORK
Scranton
Wilkes-Barre
\
ESTABLISHED
Albany
Harrisburg
land
Wires
J. A. HOGLE & CO.
THE NATIONAL CITY BANK
PHILADELPHIA
BOND DEPARTMENT
30 BROAD ST., N. Y.
Kenya Colony and
Bonds
Mining
Direct Private
Street, New York 5
BOSTON
Troy
Government
,nd
1927
Bond Deportment
Wall
64
COMPANY
the
Municipal
UTAH
MUNICIPAL
Securities
INVESTMENT
BANK & TRUST
Authorised
AND
HAnover 2-3700
Chemical
to
44
State and
Securities
Bankers
page
before the 1952 Eastern Spring Con¬
Institute of
America, Asbury Park, N. J.,
U, S. Government,
telephone:
on
by Mr. Cross
in
Stale and
the
you may appraise
should perhaps give you
some personal background.
My experience in corporate financ¬
ing has covered some 35 years of
activity in ther securities business,
Milton C. Cross
particularly on the buying side, by
which is meant those departments having to do with
the investigation, design and purchase, as distinguished
word
page
by Gen. Groves before the New York
Underwriters, N. Y. City, April 17, 1952.
New
as
that
order
♦An
page
composition
affecting
as
reference
In
economic
a
re*An
on
face
be
by the Constitution, prompt and
effective action must be taken to revoke and
well
as
what I say, I
States by the Acheson actions
refusal
a
membership have
by to stimulate discussion.
European problems are not
military—they are economic
How long must we—how long
ultimately
exceeded
of
—
problems
President
of
market
can we
meet Europe's demands as
interpreted by our do-gooders? Be¬
cause
of the great drain placed on
Leslie r. Groves
your
in the present situation. I hope there¬
Our
Action Is Required
V
If
and
solely
a power that can not safely
individual, any executive or
legislative body, including Congress.
among
selection of methods of offering, the
life.
be entrusted to any
friends
securities
changed
way
my
that it would be appropriate to the subject
assigned to indicate the scope and nature of the services
which an investment banker is equipped to render to
industry and how I would use such
services if I were in your position.
This I propose to do through a brief .1 i
outline of some factors in the design ;,
of financing programs and particular
preservation of the American
effectively usurping,
any
of
will be not only in financial matters,
but in American liberty and in the
is
or
Somes
suggested
issues
faced with is the cold fact that, the
are
President of the United States either has,
<
both methods.
if extended year after year and crisis
after crisis.
And bankruptcy for us
old and honored document.
an
to the U. S.
or
its
in
in¬
an
clarification of such terms as "private place¬
offering." Ascribes growth of private
placement to: (1) registration requirements of SEC;
and (2) increase in institutional type investors. Criticizes
rule limiting a private placement to 25 investors, and
holds this rule denies issuers benefits of using both
methods of financing simultaneously. Advocates amend¬
ing SEC Acts so as to permit issuers of securities who
file specific information with SEC to offer securities by
ment" and "public
domestic economy.
in placing that protection in the
We have here far
Cross urges
execution, has a- direct effect
This is axiomatic. If a nation
has a wise foreign policy the effect upon its domestic
policies must be good. The converse, unfortunately, is
also true. If our foreign policy is not
laying the foundations for securing
a
real peace for us and the rest of
the world, then we can look forward
to a war economy for a long, long
time. A war economy is expensive—
expensive to the point of bankruptcy
upon
then
does
the recipients
to
describing functions of investment banker, Mr.
as
accord with Russian
de¬
a
present
our
Banking and
Exchange Place, New York 5, N.Y,
Members New York Stock Exchange
and
other
Principal Exchanges
111 Broadway,
WOrth 4-6000
105 W. ADAMS ST.
CHICAGO
IRA HAUPT & CO.
Teletype NY 1-702-3
WHitehall 4-8181
Boston
N. Y. 6
Teletype NY 1-2708
Telephone:
Enterprise 1820
y 1 t iC
2
The Commercial and Financial Chronicle .\
(1694)
A v*»
r*
t.J
lUOHDiM 10
'
'
Thursday,, Ap^il, 24, 1952
i
i
*
/T;
*•»
" ,4
f'CJri-«jv-
MARKETS
TRADING
Polaroid
Corporation
Public
(The articles contained in this forum
Utility 5^/52
they to be regarded,
are
Established
120
as an
Partner, L. J. Marquis & Co., N. Y. C.
and Vice-President, Mutual Shares
Corporation
Z
Teletype NY 1-583
Northern
Cuba
We
frequently
recom¬
securities.
their
settled
heavy predepression debt
top
payments and
amortization
resumed
were
the
with
fffiPONNELL&fO.
New
120
York
York
BROADWAY,
Tel.
YORK 5
NEW
REctor
their
L. Heine
Consolidated
Industries
Bassett Furniture
Camp Manufacturing
Commonwealth Natural Gas
Dan River Mills
months
Cuban
|
callable
Lynchburg, Va.
♦
TWX LY 77
have
The
$134,000,000).
1951,
STRADER,TAYLOR & CO., Inc.
bonds
Government
Total
(non-
except for sinking fund)
been
selling
large
at
miums for many years.
The
industry is still by
economic factor in
the
country. A record crop of
5,589,000 tons in 1951 was disposed
cash
of
England Lime Co.
of
(NELCO METALS
100%
and
and
Share:
per
$2.51
App. Price $12
$3.04
Share
per
1950——
1951—_
2,457,000
*3,616,000
problem
*The presently
roads
these
products
being
are
de¬
them a Cuban
substitute for jute. A nickel de¬
veloped,
The
Cuban
peso
75 Federal
V
N. Y. Phon*
WOrth 4-2463
2-6190
to
of
freely
with our
cur¬
export
tax
is
an
ex¬
pertinent
to
are
belief
our
valued
Cuba
of
under¬
are
the basis of the present
on
voluntary exchange offer. This of¬
fer
will
terminate
record of default
stock;
and
service
debt
on
the preferred
period
12-year
a
20-year
a
under
the
$19,150,000 and current liabili¬
of
these
$7,240,000.
in
Included
liabilities
current
of
was
an
$2,000,000 for debt reduc¬
largely eliminated.
No effect
above
semi-annual
tire
the
this
basis
debt
of
The
1856
Hentz & Co.
York
Stock
Exchange
New
York
Curb
Exchange
York
Cotton
Chicago
New
And
Exchange
Exchange,
Board
Orleans
of
Cotton
other
Inc.
Exchanges
Exchange Bldg.
DETROIT
GENEVA,
N. Y.
PITTSBURGH
SWITZERLAND
offer
contem¬
bonds
of
Cuba
reduced
face
value
1,
1952
(after the
payment), to bear
interest at 4%, to be amortized at
1%
per
1970.
the
annum
The
four
cash
zation
and to mature
present
deposit
about
to
representing
payment due
small bonus for
This
leaves
about $300 for
an
a
the
acquisition
of
producing
companies
through merger, as well as the
discovery and development of its
own iproducing properties and an
increase
in
its
refinery capacity,
Sunray maybe placed well up in
the leading produc¬
refining oil companies
while its competitive position in
ing
this.. basic
growth
been
Within
the
industry
materially
last
Barnsdall
Oil
Company,
significance,
greater
embarked
on
and
it
accelerated
an
fields
and
total
for
added
Assn.
Tel. NY 1-1932
CO., Inc.
STREET
SUGAR
Raw
Also, its plans
gasoline refinery at
new
a
WALL
NEW YORK 5, N. Y.
substantially to
—
Refined
—
Liquid
Exports—Imports—Futures
Corpus Christi, Texas, to be ready
in
18
about
months, indicate fur¬
DIgby 4-2727
the
to
vantage which the
enjoy
the
under
company
plan
new
is
difficult
com¬
bonds
other
exist¬
yield
than
less
4%. The company financed equip¬
ment
serial
bonds. We
4%
new
sell
through
purchases
at
65
to
maturity
bond
straight
8%
at
of
to
income-
new
sell
yield
guess is
about
the
should
should
bonds
yield
and
4%
believe that the
mortgage
30
for
10%.
a
this
If
substantially correct both
Cuba Northern 5 V&/42 certificates
of
deposit selling
Consolidated
preferred
work
out
of
at
about
34
at
now
Railroads
selling
at
in
ations
all
earnings
the
compare
with
securities
new
to
1951, Sunray completed the
ad-1 most successful year in its his^
will tory, reflecting stepped-up oper-C
tax
pared to the present.
It
In
and
but
divisions.
were
because
Pretax
substantially
up
of
the increased
heavier
number
taxes
of
and
NORTH and SOUTH
The
small.
tions
in
fields
reflect
the
favorably
from
second
indicate
will
be
MUNICIPAL BONDS
and
drilling opera¬
important new
several
management
and
discoveries
new
successful
recent
to
CAROLINA
outstanding, the gain in
share results was relatively
per
the
top
the
■F. W.-
the
upon
third
and
that
down
CRAIGIE&CO.
levels
company
RICHMOND, VIRGINIA
Bell System Teletype:
attempting to find
crude
through
Plans
for
its
enlarging
N. Q. B.
Sunray's refining capacity by the
place
...
We have
no
doubt of the
speedy
the
almost
company
offer
stances.
prove
ferred
my
It
obviously
under
offer.
the
the
best
circum¬
regard
about
has
the
situation
stockholders
stock
do
the
of
who
well
promptly
to
pre¬
in
will
deposit
under
this
-
to
balance
in
In
diversified
has
production
two
a
will, in particular, im¬ respectively.
opinion,
their
is
to
one
Canada,
and
ratio,
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of
35 Industrial Stocks
Sunray
BOOKLET
interest
-
more
efforts.
own
materially
RH 83 & 84
Telephone 3-9137
increasingly active in. the
future in
Specialists in
VIRGINIA-WEST VIRGINIA
common
middle of 1953 will tend to
45.
Since 1932
shares
Cuba
would
30
highly
amorti¬
face
Dealers
New York 7
DIgby 9-1550
99
reserves.
the
a
Security
LAMB0RN &
ing program which has already
developed several important new
obtainable
bond with
Y.
has
received
of
Tel.
N.
Broadway
drill¬
be
investment
150
of
with
prompt deposit.
Members
18
refining capacity which currently
con¬
request
on
GKKSTEX & FRENKEL
months, the
company has
satisfactorily inte¬
grated
its
acquisition
of
the
its
Leaseholds, Ltd.*
Prospectus
has
strengthened.
the
1,
*
Corp.i
and
consummation of the plan because
June
Commonwealth Gas
Western
Following
includes
price of 34 for
receipts
points
in
tingent interest for 1951-1952 and
a
CHICAGO
present
Trade
Exchange
NEW YORK 4,
exchange
approximately $635
June
in
N. Y. Cotton
mortgage
Northern Railway for Peso bonds
in a principal
amount equal to
of
New
New
re¬
$42,600,000 in 1940
outstanding
their
Me tubers
Commodity
consolidated
about
to
by 1970). On
plates replacement of the present¬
ly
.
debt
reduced to about half in 1952.
was
Established
amortization
entire
C.B.I.
several
has been given in the
figures
ernment
plus
SY^s
N. Y. N. H. & Hartford R. R.
profitable refinery division.
be
ing marketable debt. Cuban Gov¬
interest
as
growth oil selling in a popular
price range and yielding 5.45%.
will
and
contingent
Missouri Pacific Serial
unusually
an
Logan Stirling
ther important gains in its
moratorium (payment of 1% fixed
2%
a
my
out
tion which under the present plan
of
Cuba
assets
annually recurring item of in ex¬
thaf the securities of Consolidated
Railroads
as per con¬
current
total
showed
ties
S.
even
capital
solidated balance sheet of June 30,
cess
explain
outstanding Cuba Rail¬
stock has an equity in
earnings.
1951
I believe that these remarks
Street, Boston 10, Mast.
Liberty
par
(subject
2%).
rency
preferred
The working
among
posit is also being developed.
INCORPORATED
$900,000
900,000
900,000
1,100.000
1,100,000
changeable at
Dayton Naigney & Co.
New
Mtge. debt Inc. bonds
com¬
000 tons.
request
on
ehgs. & amortize
pertaining to
4
Income
avail, for
fixed chgs.
of
Memorandum
to be
$1,100,000
the
In
the ranks of
Fxd.
$2,463,000
New
$1.58
will
of
pertinent:
of the new
which is estimated at 5,900,-
crop
1951
1950
over
at the end of that year
OWNED)
1949
carry
1,651.
charges seems
1949
plicate
Earnings
substantial
no
for
comparison
far the largest
New
591.
1,374.
—
following
income
Cuba's sugar
per
$10,000 income 3/2001
~
,
pre¬
783.
27—__
proceeds
Balance
^
attractive
't.
plan
Teletype BS 259
:
N. Y. Telephone WOrth 4-5000
^
for
than
stands
$3,025.
at
a
opinion, Sun¬
Oil Corp.
issued:
when
Cash receivable as
ten
$127,000,000;
as
more
preferred at
certificate
improve the picture (export sur-
(1950),
t
Boston 9, Mass.
7-0425
ray
$2,900 dividend arrears
tends to
balance
e
148 State St.,
Tel. CA
mar¬
whole
.RR.
30
plus
| LD 39
of Cuba
Sale
trade
the
year.
Consolidated
request
on
the
that
ie
(2) Purchase of 100 shares
Information
present
than the
Free
UNION TWIST DRILL
ditions,
group
has
been stronger
16.
——————
offices
un¬
fact
591.
3,041.
--
branch
our
for
despite
2,450.
proceeds.--
to
j
and
der
at
—
cate
and even
1951
December,
attraction
retention
——
—
wires
Dept.,
purchase
$2,900 dividend certifi-
'
of Cuba
larger
favorable
Life Insurance Co. of Va.
3/2001
new
Total
.
holdings in the hands of
private individuals. A constantly
in
000
most
con
Profit
is
now down to $68,700,000 compared
with
treasury holdings of gold
and foreign exchange of $495,000,-
the
$3,025.'
plan
hard
currency
Republic
the
of
offer
to
Cash receivable as per
and
NY 1-1557
Sunray Oil Corporation
Sale when issued:
241/2
For instance the entire external
debt
American Furniture
Direct
Manager, Investment Research
RR.
:
30
St., New York 4, N. Y.
HAnover 2-0700
STIRLING
Cuba preferred at
of
reserves.
Trading Interest In
v
cer¬
(1) Purchase of 100 shares
■
Max
25 Broad
All factors considered, it seems
curities
can
be
created at ex¬
tremely large discounts, as shown to me that the stocks of soundly
managed oil companies continue
by the following examples:
10,000
their
Members New York Stock Exchange
Members New York Curb Exchange
Mobile, Ala.
LOGAN
Eastman, Dillon & Co., New York City
to
trade
accrual
of 30 for
preferred stock these se¬
old
the
Steiner, Rouse & Co!
Manager,
Investment
Research Dept., Eastman, Dillon
& Co., New York City. (Page 2)
present ■ price
the
At
foreign
relation
in
2-7815
Corp. (Page 2)
Stirling,
S.
tificate.
is modest
now
Mutual Shares
Sunray Oil Corporation—S. Logan
Bought—Sold—Quoted
deduction
after
dividend
29
Peso
most countries
Exchange
Curb
Railway
New Orleans, La. - Birmingham, Ala.
cash
5.91
of
structure
Stock Exchange
100,3% cumulative income
Peso
debt
foreign
Members
New
re¬
that the
sult
Northern
Cuba
5l/2/42—Max L. Heine, partner,
L. J. Marquis & Co., New York
City,
and
Vice-President
of
of Cuban tax.
interest
Since 1917
Cuba
-
of
bond due 2001.
structure,
Rights & Scrip
the follow¬
securities per share:
new
Peso
purchase of South Ameri¬
As these countries
mended
can
Specialists in
ing
Railway 5^/42
have
preferred
The Consolidated
stock has been offered
Pfd.
Consolidated Railroads of Cuba
Pfd.
nor
Railroads
11%.
over
„
1920
Louisiana Securities
yield of over 8% and to maturity
of
Alabama &
Selections
Consolidated
for a straight
635 pesos,
value of
Broadway, New York 5
BArclay 7-5660
intended to be,
not
are
Yft'S <i
Week's
Participants and
Their
offer to sell the securities discussed.)
MAX L. HEINE
New York Hanseatic
Corporation
Forum
week, a different group of experts
in the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Puget Sound Power & Light
Central
Security I Like Best
This
A continuous forum in which, each
Gas
Interstate
Colorado
The
IN
-
ON
REQUEST
through
direct investments in three favor¬
situated
ably
producing
.
•
*
prospecting
and
National Quotation Bureau
Incotporated
companies
as
well
as
Continued
on
page
24
46 Front Street
New York
4,N. Y.
Number 5110
Volume 175
.
.
The Commercial and Financial Chronicle
.
By MARCUS NADLER*
Predicting
-effect
*
-
Page
AMD COMPANY
Investment Banking and "Private Placements"
:
—Milton C. Cross________—__"i—
;
Cover
BRIGHT VICTORY
Let's Have
Long Range Foreign Policy!
a
or
; —Lt.
Leslie
Gen.
GrovesI
R.
__Cover
L_.
Problems Confronting Commercial1 Banks—Marcus Nadler
.
Defeated
3
changes
cash
obsoletes?
dark
See
us.
defeat
into
bright victory!
Improved Debt Management—The Treasury's Opportunity
o
—Aubrey G. Lanston___
4
.
The Moscow Conference: A Continuing Threat—A. Wilfred May
situation.^ ';,
Obsolete Securities Dept.
5
Stock Answers for Savings Banks—Ira U. Cobleigh
.
,
asset
by
Our
:
business
on
LicHTtnsTEin
-
Articles and News
*
profits and liquidity of assets, though not
decreasing need for working capital. Sees need for banks to
increase their capital resources and to attract- capable young
men
to the banking profession.
Advises banks to shorten
maturity of bonds in their portfolios and maintain a:
.
v
•
later a transition to a sellers' market is
place, Dr. Nadler contends this will have adverse;
sooner
bound to take
3
I N D EX
Problems Confronting
Commercial Banks
Professor of Finance, New York University
(1695)
6
99
WALL
STREET, NEW YORK
Telephone:
WHitehall 4-6551
The Investment Public Is Clearly Afraid
The problems that confront the
commercial banks today are, on
speeding of tax payments under
the Mills Plan will further accentuate the dependence of busi-..
riess on the banks. The problems *
that will confront the banks under '
the same that
confront the economy of the country. In addithe
about
whole,
-
—Bradbury K. Thurlow
6
Wage Stabilization and Emergency Disputes
1
,—Sumner H. Schlichter.
Beckman Instruments*
7
♦
'
tion
as
of
suit
these
re-
a
number
vbe
(1)
<
problems the consequences be on (a) busih a v e
arisen ness CXAJ.S* vKr / V
V
rtlioC.il
XAV.00. and
(b) on the banks?
XF
U
a
-
v
which
are
direct
of
con-
t o t h e
c e r n
c o mmer c
ia 1
<
.
A
' /
'
ability of a bank to, increase
depends on its capital
All well-managed banks >
have more or less adopted a rule i
thumb
the
to
as
relationship
and capital
*
to do'between risk assets
analyze resources. As the volume of risk :<
following:-assets increases, the ability and ;
(1) t he gen- willingness of a bank to lend are*
eral
outlook: reduced and hence, under,these
to
Sane
to
Monetary
i
Loans—A Logical
,
Canadian Chemical*
9
10
Colorado Interstate*
and Credit Principles
*
•
—James Washington Bell-_____-—11
loans
propose
is
Reversion
_
_
Federal
.
,
_T
Some Observations
the Social
on
McCormick
T.
12
Tennessee Production*
Security Program
—Leroy A. Lincoln
The Outlook for
Schering Corporation*
.
„
Budget Not Excessive—Edward
resources.
banks. What I1 of
Corporation
"Employee Stock Purchase Plans—Louis Stone.
The
its
of
^ Development—Oliver M. Whipple and Stuart F. Silloway__
requirements of their • cus-\
tomers; and (2) if not, what will
the
Of
Direct Placement
^
whether they will be able to meet
recent
developments
a
will
conditions
13
Business—Roger W. Babson
14
•
the
Marcus Nadler
business
for
and the
for the commercial
banks; (2) the
relationship of capital resources
to prospective borrowing; (3) the
need to strengthen management;
(4)
the
interest
of
payment
on
savings deposits, and (5) the effect
interest
of
trend
the
of
rates
investment" policies
the
circumstances, the credit require--
problems this will create ments of many customers may not
mercial
of
on
com-
banks.
is easier said
banks
below book
are
value
and
of
high
widespread. More¬
high
and
taxes
operation
kept
costs
bank
making
their
have
thus
down,
shares less attractive to investors.
United
States has enjoyed marked stabilThe
;
the
of
economy
during the past few months,
question today is whether
this
relative stability
will conity
The
tinue
time
for
whether
or
distant
either
indefinite
an
future
to
the
of
and
wages
whether
the
will
renewal
a
between
in
it
period of
too
not
give
the
way
spiral
or
prices
deflationary
forces
will gather momentum.
known there are
and
As is well
both inflationary
deflationary forces operating
the economy and
in
should
either
one,
if
will affect the
commercial banks differently and
it
will
prevail,
create
The
them.
arise
inflationary
of the
out
problems
new
for
forces
fiscal
unhealthy
position of the Treasury and the
prospects of
for
the
in
not
wages
accom-
crease
by a corresponding inin productivity is another
source
of
panied
inflation.
If
tionary forces should be renewed
the
on
demand
for
the part of
will rise.
The
♦An
working capital
industry and trade
increase
in
taxes
the
and
Nadler before the
New Jersey Bankers Association, Atlantic
aty, N. J., April is, 1952.
:
by
Dr.
increase their capital
debentures
sejj
their
in
turn
partly to
Finance
increasing their
resources, while others in
thereby
tion
do
to
will
so
dividends
in
shares
their
of
capital
a posi-
increase
order
to
their
Insurance
and
Business
Man's
Canadian
more
Stocks
inflation
capital
should
But
the
be
'
...
20
11
:
Securities
24
Leidy Prospecting
Coming Events in Investment Field
8
;
National Alfalfa
Dealer-Broker Investment Recommendations
♦.
-
Einzig—"Britain's Distorted Economy".
will
become
if
it
case
them-
reassert
even
From Washington Ahead
* '
:
this
would
should
still
Indications of Current Business Activity
55
1
Notes
NSTA
Wilfred
Reporter's
Our
22
May
Public
c|ent of ganhs
.
42
45
Securities
„
with
■
American Bankers Association
and
State bankers association,
formula de-
were to work out a
52
Registration
GULF
57
...
-The Security I Like Best
of Trade
State
The
Tomorrow's Markets
...
and
54
i
.
.
SULPHUR
5
(Walter Whyte Says)
•.
-
:
.
Washington
2
:
Industry
and
'
You
'
.
..
.
CORPORATION
.
64
'
risk asset. It is quite evi-
a
dent
that
which
in
Superinten-
in cooperation
_
are
today
many
assets
definitely not risk
Cnn finited
nn
as—
*Mr.
Mav
again
discusses
the
International
Economic
Con¬
ference, held in Moscow.
•
v\nrio
couunuea on page io
Published Twice
1
Weekly
Gardens,
Drapers'
London,
E.
C.,
Eng¬
have
specialized in
PREFERRED STOCKS
Reg. U. S. Patent Office
25
Members New York Stock Exchange
J
25
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ST., NEW YORK 4,
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•
1952 by William B. Dana
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Copyright
CHRONICLE
FINANCIAL
WILLIAM
Spencer Trask & Co.
and
COMMERCIAL
The
BOUGHT
•SOLD
land, c/o Edwards & Smith.
For many years we
NY 1-1826
be
Salesman's Corner
State
Exchange PL, N. Y. 5
1-1825 &
60
Securities
Now
,
40
23
Offerings
Security
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Prospective
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MACKIE, Inc.
&
41
Governments
Our Reporter on
upon
Singer, Bean
*
Report
Securities
and
*Prospectus available
14
News About Banks and Bankers.
Observations—A.
of the Currency, the Federal Re-
^
Tennessee Production*
51
authorities, i.e., the Comptroller
„
.
.
16
Mutual Funds
highly desirable if the supervising
*
...
Gas and Oil*
Natural
18
■
of the News—Carlisle Bargeron
Railroad
serve
8
banks
of the
pronounced if the forces of
m0re
Philadelphia and Los Angeles
.Cover
Bookshelf
the
make
institutions
attractive. The need
increase
Telotype NY 1-3370
Direct Wires
Corpora-
partiy to improve their
capital position. Other banks
disclose their hidden assets,
own
to
off
pay
and
wm
Broadway, New York 6
BO 9-5133
may
preferred stock held by the
Reconstruction
tion
Incorporated
61
47
See It (Editorial)
1
others
Still
fining
♦
.
address
h0iders
stocks.
infia-
the
22
their
to
not
large
a
will
present
stockothers may sell preferred
^g^ts
selves.
year,
undoubtedly
through the granting of valuable
fiscal
next
banks
endeavor to
deficit of S14 billion
a
portion of which will have to be
met through the sale of securities
in the open market. The constant
increase
Some
Bank
Request
J. F. Reilly & Co.
15
Regular Features
As We
the demand for bank shares does
on
14
than done because
the prices of the shares of many
profits
Business
for
(Boxed).
—
over
Outlook
Quite Unconvincing
Favorable Factors in Business Outlook.
be met. The solution of the prob-;
lem, of course, lies in an increase vv English Gold and Silver Markets
in the capital resources of the
Urges Higher Rates on FHA and VA Mortgages
commercial banks. This, however,
not seem to be
Problems Arising Out of the
The
*
*Pro$pectus
Bank
and
$30.00
Monthly,
(Foreign postage extra.)
per year.
Note—On account of
the rate
of
PETER MORGAN & CO.
Publications
Quotation
exchange,
Record
—
the fluctuations
remittances for for¬
eign subscriptions and advertisements must
be made in New York funds.
31
Nassau
Street, N. Y., 5
in
Tel.:
Dlghy 9-3430
Tele.: NY 1-2078
4
The Commercial and Financial Chronicle
(1696)
*
in
and
Improved Debt Management—
The Treasury's Opportunity
By AUBREY G. LANSTON*
longer than
short-term
Says market
receptive
sions.
and
lieve that the
the. Treasury
security market and
Treasury
on
porize
old
oi
an
usual
invite
that
a
overruling
an
lower
trend.
a
virtually all occasions in¬
this
cluding
has
one,
compre¬
a
hensive grasp of the fundamentals
rapid
issue, of market conditions and
attitudes.
If, there¬
Treasury continues to
be overly cautious and if it fails
of
investor
fore,
to
the
demonstrate
confident. leader¬
ship — one that bespeaks its
insurance knowledge of investors' reactions
companies are not generally bull¬ and of the requirements of the
ish on government security prices,
economy, it will miss the
out¬
Savings
top
but
debt
management.
banks
the
among
and
average
insurance
standing opportunity that is
now
the cash position looks open to it.
The time has come
easier, and savings deposits, as when the Treasury should use its
Federal Re¬ you know, have been mounting
knowledge in a way that will lead
serve
is
fol¬ sharply.
Therefore, the attitude investors,
instead
of
following
lowing a neu¬ of these institutions, and of those them.
'
When
company
the
.
tral
passive
or
policy,
the
present,
d
e
i
c
made
at
as
i
s
the
Treasury with
Aubrey G. Lanston
debt
with
by
them,
ward the bullish side of the bond
of
as
to
over
a
whole.
a
This
carries
aggressive seeking
commitments.
more
mortgage
The
to
bullishness
market and the
manage¬
particularly
tends to¬
corporate securities,
market
o n s
respect
dealing
in
in
the
bond
psychology under¬
ment are de¬ lying the structure of
yields of
shaping developments in Treasury securities and other ob¬
the Treasury security market and ligations is such
that, in absence
materially affect the trend of in¬ of steps taken by debt manage¬
terest rates and the stability of ment to meet thesituation, the
prices in the Treasury security approaching eligibility of Treas¬
cisive in
market.
As you
know, growing bullish¬
areas
of
in
been
has
ness
prices
the
evidenced
bond
in
all
The
market.
bullishness
U
with
respect to the
security market emalargely from commercial
.iers
the
who
"nervous" about
are
short-term
considerable
a
more
wherein
one
as
Attitude
demonstrate
of time in¬
low
higher; (c) the
deficit
would
less
be
to
that
holds
the
of
N.
Business
Mr.
Lanston
Administration
the
University of
Y., April 17, 1952.
before
the
a
The
Buffalo,
panicky buy¬
Treasury security bond
more
breadth of
offerings.
Buying of this charac¬
ter
to
leads
stability.
first
in¬
market
This would take place,
the up side of prices and
on
later
general
it
would
take
place
the
on
down side of prices in comparable
or
greater degree.
It is fortunate, and I trust it is
the
case,
that the Federal no
longer feels itself duty bound to
attempt to crush out such price
spasms.
To the extent that the
market is thus free to reflect pri¬
vate
supply
and
demand,
the
Treasury
leadership
will be demonstrated
shortly with
increased clarity.
quality
of
This
more.
to
bills
as
a
Tasks of Debt Management
The
Treasury faces two tasks.
First, it must raise cash to fi¬
nance
seasonal
a
deficit.
The
and
only
fiscal
moot
year
element
involved is how much
money will
be needed. All are agreed that the
deficit should
be met
by borrow¬
ing from the existing
ply.
All
not
hint
will
carry
Federal-Treasury accord
permanently constructive
of
tempo¬
take
combination
of
conditions
security market,
utterly unavoid¬
Treasury continues to say
over the next few weeks,
then we face the possibility that,
restricted
as
ble,
Financial
offer
these
Sometimes
can
do
But
here
that's
should
similar
would
about
A
challenge
.'
ment
A
.
to
our
invest
some
banks
would
coast-to-coast
.
executives
more
with
there's
much
not
you
regard it
Trading
as
a
So
if you
ever
call
—
The
last
us
have
a
institutions
.
900
for
Treasury
excessive
an
be
bank
credit
ex¬
pres¬
renewed.
make
to
In
the
other
in¬
the
process
Federal
Reserve
might find it
expedient, although not neces¬
sarily desirable, to help out the
Treasury's deficit financing and
thereby to facilitate the full cir¬
cle
of
the
transactions
have
I
mentioned.
In other
Snyder before
the
the
Conference
Washington,
Secretary said:
Pacific
in
last
Pull¬
Friday,
"While
there
to be a lull, at present,
inflationary pressures, it would
in
of
be
to
buy
or
sell-:—
imprudent to give less than
full
weight to the inflationary
implications of our large defense
program and of the deficit financ¬
report
is,
"No
Market".
to
operations'
be
NEW YORK 5, N. Y.
Offices in 99 Cities
statement
must
will
have
Obviously,
cover
the
refunding of the Treasury's ma¬
turing debt as well as its financ¬
ing of a deficit.
Merrill Lynch, Pierce, Fenner & Beanb
STREET
which
undertaken."
a
For
want
the
the
to
cash
moment, however, I
ignore the financing of
needs
of
the
Treasury,
because I believe general market
conditions are such as to com¬
mend
the
Treasury's
considera¬
issue is
selling at lOlVfe.
Question: Will the Treasury fol¬
low up its test
offering of last
February by making an additional
offering of that bond to the hold¬
of the certificates that mature
ers
July 1 and which
on
market
into
words, if the Treasury
be
is
that
one
terest
deaf
saying
what
to
the
could
we
excessive upturn in
an
be re¬
may
funded in May?
Obviously, any such exchange
offering would have an important
bearing on the near-term trend of
bond
the
prices.
I
don't
know
what
Treasury will decide.
Treasury Should Not Delay
Refunding
Some
which
people,
until
a
also
I
a
minority
of
member, be¬
Treasury should not wait
lieve the
am
mid-May to
such decision.
announce
any
Within the past six
weeks the Treasury security mar¬
ket has moved up substantially in
price
relatively
on
Whether
the
demand
securities
has
buying.
narrow
broad
evidenced
and
general
for
corporate
the
been
tail
wag¬
ging the dog, namely, the Treas¬
security market, or vice-versa
ury
is
a
separate question.
Treasury
But if the
to prolong the un¬
were
to its debt-
as
policies,
the
result
would be to introduce
an
ing
element
and
undesirable
speculation
further
a
increas¬
of
-
to the likelihood of
as
and
substantial
price
advance.
Therefore
that
have suggested
some
the
Treasury announce im¬
mediately a voluntary exchange,
one
whereby the holders of the
September 1952-53 might ex¬
change them for additional 2%s,
2s
to
appears
would
run
bond
in¬
ease
1957/59.
of
If the exchange offering
bonds were attractively
these
priced,
a large volume of volun¬
tary exchanges would follow, and
in such
a
case the July
or
less across
maturity
although the economic of certificates might be refunded
with a new certificate.
background continues to be one
the
in
rates
more
board
which
the
inflation
potential
is high and indeterminant.
Some
them,
believe, and I
am
among
market
in Treasury securi¬
decreasing rates of in¬
and
this
Those
view
who
ate
hold,
subscribe
therefore,
to
that
offerings of intermedi¬
long-term bonds will be
and
If this
You
view is valid
doubt
no
whether
that the Treasury is de¬
of demonstrating that its
sirous
I
have
additional
are
in
offering
bonds should
be
at
wondering
mind
of
that
the
an
2%s
100 when the
outstandings command a price of
101 %. No, I would not
expect the
offering to be 100, but I also have
no
idea
should
what
be
the
offering price
that
except
it
should
be decided by the market.
This brings me to a phase of
Treasury financing which, I be-
Continued
some
on
page
20
offerings should be imminent and
they
For
might
first in
appear
con¬
Treasury refundings.
the Treasury must
example,
about
$5*4 billion of
that
Normally,
mature
cer¬
July 1.
refunding
an¬
the
nouncement
would
on
be
expected
June.
take
refunding.
It
itself, and the
Federal, from the necessity of
handling a major financing dur¬
ing a month of quarterly income
tax payments.
It seems reason¬
able
to
would
■ii?'
We purchase
$ecu/iMiek
all
or
the
majority shares
in sound So.Calif. firms
advance
an
thereby
In the speech delivered for Sec¬
man,,
Trading Department
and
vestments.
public
the part of holders
on
certainty that exists
securities
test
of
the
maturing certificates of
only 50%. Yet today, fortified by
a
change in psychology, and a
scarcity of market supply, this
pro¬
bonds,
with
a
similar
situation,
the
Treasury wisely elected to under¬
of
such
70 PINE
the
use
But, last February, when faced
a
acceptance
management
in
Northwest
account
thousands
block of stock'
to
would
a
time, the offering
It attracted
so
the proceeds from the sale
short-term securities, to buy
longer-term Treasury and other
relieved
Harry
&
Myron Kunin
PRIVATE INVESTORS
403 W. 8th St. LOS ANGELES
expect that the Treasury
.
than
literally
want
funds
desirable
ing
we'll
the
use
cor¬
that
and
market
be
At
failure.
a
of
would
retary
Depart¬
remember:
thing
new
Commercial
ceeds of the sales of these
tificates
challenge.
personal contacts.
and
temporarily
of
obtained to acquire the newlyeligible bonds
(those
now
re¬
stricted) and non-bank financial
refund
.
challenge to
proceeds
borrowings.
long-term obligations.
policy of extending the aver¬
age maturity of bank-held debt,
against the background of an un¬
appears
A
offerings
substantial
by business corporations
the
porate
securities,
challenge to 103 Merrill Lynch offices
from
Such
that wish to invest their accruals
somewhat
sures
we
securities
type.
nection with
by refunding
pansion should inflationary
Lynch,
with
deficit
of tax reserves and to
supported
it.
Merrill
at
competition
absorbed in
be
amounts
made.
demand permits, into
term.
holding
precaution against any possibility
and
true
in
short-term
It made
an
was
follows:
as
innovation.
an
intermediate bond,
the 2%s 1957-79, then of 5-7
year
short-term securities would
very
new
of
eligi¬
Thursday, April 24, 1952
.
offering of
chain of
a
institutions
reasonable steps to de¬
the large volume of shortterm securities held
by the com¬
as
become
reactions somewhat
A
wNO MARKET"
bonds
could witness
we
additonal
Treasury
all
these,
hi to
bull
crease
of
policy
its attitude
a
If the
mercial banks
one
the
and
the
to
-
the
these
nothing
terest.
Second,
many
Treasury refundings.
on
the
able resort.
by
than
that such
over
was
respect
Treasury does
other
securities,
assumption is
ties
an
sell
lowest-cost
taken
the
that
to
with
the
that
add
supply by borrowing from
commercial banks, except as
this becomes
the
interest is in sound debt manage¬
ment and not in the creation of a
money sup¬
agreed
are
Treasury should
action
has been
wish
not
money
long-term
The Treasury can
tangible evidence
the Treasury
in
in
erroneous
value.
rary
Conference
Buffalo,
dem¬
longer wed¬
the
meaning, and not
by
toward
continue to be sup¬
further
that
based
may
2Vz%
ported at par.
be¬
not
bias
It
no
on
bonds would
offer
man¬
past pronouncements that
premise
low
these
that it is
debt
are
rates.
based
were
its
excessive
an
suspect the Treasury of
holding an excessive bias towards
and
that
interest
ded
Many
address
a
Interest Rates
decisions
onstrate
projected, and (d) the Treas¬
ury would display a tendency to
starve
the
market by adhering
largely, if
not
exclusively,
to
Treasury bill offerings.
rates
on
an
than
*An
the
Therefore, the Treasury faces
opportunity wherein it may
(a)
level
upon
period
of stable to
interest
across,
ing
Treasury Can Demonstrate Its
They
lower
Treasury
interest
Treasury fails to do this
market that lacks any
weeks
in the amount of its weekly offer¬
ings of Treasury bills but nothing
prices,
agement
a
less
or
of
tential.
off, (b) loans would be stable to
over
easing
This would appear to be
incongruous
against
the
back¬
ground - of a high inflation .po¬
vulner¬
defense expenditures would
stead
explosion of bond
an
board.
ability to their income should the
future unfold
and
.
invite
character of their
Treasury security holdings.
envision
upward
an
rates
Treasury
n~*es
restricted bonds could result
ury
If the
it may
six
been
saying, in all
sorts of ways, that it would
be
receptive to offerings of securities
that the Treas¬
Investors know
low rate struc¬
a
who believe
cautious de¬
vestige of such
a
ury, on
condi¬
market
end
a
interest rates whenever conditions
Treasury will tem¬
bond
the
impelling
desire to foster and promote
ture will be insured.
un¬
tunity to dem¬
quality
to
build-up toward
oppor¬
onstrate
with
tions
financing follow the theme that
the Treasury stands on the thresh¬
cloak
liberations
refunding. Predicts interest rates will not
on
long-term Treasury issues.
on
people
Treasury's
past
has
far, the Treasury has given no
reply. It announced an increase
assert
of
the
the
For
of longer than one-year term. So
commendable.
Treasury
refundings, ahead of sub¬
cash financing.
conserva¬
this
is
of
largest
the
becomes
now
number
securities
to
securities
of
of
the world,
attribute
the
as
issuer
an
manager
it
at
My comments
As
as
that
lower
move
market
term, and makes recommendations for
one-year
debt
is
tunity.
Debt
management
has
emphasized its great sense of cau¬
tion in Treasury financing deci¬
economy
posi¬
tive and confident leadership, one
that will disabuse the enlarging
cash to finance seasonal and fiscal year deficits, and, secondly,
the reduction of the volume of short-term securities held by
banks.
stantial
that
reactions and the requirements of the
Sees Treasury facing two tasks, namely: raising of
commercial
tion
But
investors'
meet
whole,
oppor¬
tive
Asserting Treasury, now free from Federal Reserve connec¬
tions, has opportunity to demonstrate its ability for sound
debt management, Mr. Lanston urges a financing policy which
will
a
up
debt in
President, Aubrey G. Lanston & Co., Inc.
economy.
the
another facet of
opens
.
.
follow
the
pattern
it
set
in February, and that an advance
refunding might be
May. The question
expected
is
in
Active Market
whether
in
the
refunding offering, when it
place, will consist of an¬
other
certificate,
whether
this
takes
will bear
and
a
1%%
whether
take
the form
the
of
or
offering
might
bond, that is,
a
refunding that would be de¬
signed to reduce short-term bank
holdings without the repercus¬
sions
of
of
commercial bank buying
in
a
relatively thin
JAMES M. TO0LAN & CO.
67
WALL
STREET
NEW YORK
market.
ury ■
Utah Southern
a
bonds
But,
Equity Oil Co.
l7/s% coupon,
last February,
also' undertook
the Treas¬
What then
HAnover 2-9335.
5, N. Y.
Teletype .NY
1-2630
Volume 175
Number 5110
,
.
The Commercial and Financial Chronicle
.
Steel
The
Commodity Price Index
Food
Price
Auto
Industry
was
the Secretary General's
the better of two
held in Moscow.
failed
to
cutbacks
score
last
seasonal
a
month
in
which
in
gain
retail
non-farm
February.
over
trade
jobs
and
in
March
Employment
goods manu¬
consumer
facturing industries offset increased hiring by durable goods
pro¬
good
week
the
steel
market
looks
tighter than it has for
weeks, according to a survey made by "The Iron Age"
of major industrial
areas
throughout the country.
The main
reasons, it states, are that when all losses are added up it will be
that
million
time
same
the
tons
and that
shutdown
recent
of
steel
production;
restrictions
on
cost
industry
that these
losses
demand
consumer
Spring has brought
the
close
came
being
were
to
at
a
little brighter business outlook to
signs, it adds, point to generally
good steel business through the third quarter.
steel
many
a
But
soft spots, which started showing
up late la£t year
turned into hardship for small and
nonintegrated steel
and
producers
during the first quarter, it points out, are still plainly visible.
Despite the threat of a steel strike, some of these producers were
not able to book substantially
beyond May.
One of the most radical changes in the steel market has taken
place in the Detroit area, "The Iron Age" notes.
Spring selling
and
bigger production quotas have caused auto makers to turn
rambunctious again.
Their quotas are bigger, they are taking all
they
allowed, and they would boost their orders if they could
get the necessary tickets.
*
a
some
specialty and stainless producers, though gloomy
first
sour
quarter,
see
prospect
some
of
better
The sheet market is tighter with peak demand
oil country goods continuing.
There is no
times
over
ahead.
for line pipe and
sign that these products
will turn easier within the foreseeable future.
get,
it
tinues "The Iron Age."
Secretary
of Commerce Sawyer is expected to impose the
12V2C. an hour straight-time increase and 5c. fringe recommended
by the Wage Stabilization Board, effective Jan. 1, 1952. The
only
thing that stands in the way of this arbitrary compulsion is a
drastic
move
by President Truman—or
a
sudden strike
by
steelworkers, this trade journal asserts.
Mr.
Sawyer is expected to drag his feet
on
the
question
of
July 1, 1952, the 2V2c.
fringe (3V2C.) set for
Jan.
a
1, 1953.
Steel prices are still expected to go up $5 or $5.50
ton if Mr. Truman approves what his lieutenants believe is
fair
treatment, concludes "The Iron Age."
Auto production last week
was
Mr.
visa
State
about the
same as
last—reflect¬
output
losses,
due
labor
to
disputes at DeSoto and flood-water conditions at Ford's Twin
City
plant, kept the industry total close to the figure for last
week,
"Ward's Automotive Reports" states.
Saturday overtime remains ruled
tions, according to the above agency.
out in the
industry's
opera¬
Walkouts at DeSoto limited this
Chrysler division's production
on both Monday and
Thursday of the past
week.
On Friday, assembly lines were halted after two hours
to
half-day operations
by
another walkout.
jection
learning that the
his
to
had
ob¬
no
attendance
as
a
journalist.
For
the
the
perspective
proper
International
Economic
ference just concluded in
must
one
merely
realize
on
Con-
Moscow,
that
it
was
the
in
and
ing
continu¬
i
n
There
two
preludes,
first
Council
O
r
from
sible
starting from the
Soviet
Embassy's visa - granting
department in Washington.
In
interviewing
Conference
Helsinki
July,
1951—the Soviet-sponsored World
in
Peace Council being the top Communistfront-organization devoted
to the dissemination of fraudulent
P£tCe t,P™paSandaThe Berlin
.
..
meeting at its ses-
passed the following relevant
resolution: "
1951
resolves
Union
call
to
the
in
—
trade
of economists,
union
ot
industry is aiming at
a
total production
Continued
Lange on my arrival in Moscow as to the origins
the
pari ey,
auUe
quite
be
remembered
Polish
the
on
^ost
madp
trial
sjgnjficantly
cnpalcpr5.
the
thp
at
fuisome
on
page
Cod, Mass.
"The
•
lor
10
exclusive
Colonial residence
•
•
Oil
Excellent Sand
Completely
full
sanitarium
opinion,
important victory
an
v i e t
through this Conference device by
puttjng us jn ^he hole "public reiati0ns-wise" with that considerj^e
numker
0f
people
f
1^+,,1^+^*1 v^thnfhpr^iHp-of
??^reuments
the medal to the sound arguments
for taklng an abstalnlnS attitude.
Union
ScT 0ur polky afforded
of
in the
world that are stiU not
<"ni0ty
the oppor"
State
°UZ„
dlce
by
their
cntlcal
charac-
terizations and expectations prior
and with
Continued
on
page
tech¬
of
all
WE
WISH
TO
56
of the peoples.
Mr.
(a) The possibilities of
improving the living conditions of
the peoples in the mid-20th cen¬
tury on the condition of the pres¬
ervation
of
(b)
The
pos¬
improving
the
eco¬
peace,
of
sibilities
HAS
ANNOUNCE
Mr.
Children's Play
area
John
nomic ties between countries.
.
.
BECOME
W. C.
THAT
ASSOCIATED
Madru
Agents
US
resolution
passed
Hel¬
at
April
21.
1952
sinki, at somewhat greater length
and in greater detail,
also spe¬
called
for
an
economic
the preparations, in¬
cluding an agenda, as they actu¬
ally did follow, to be completed
by an "International Initiative
conference,
Now,
"first
as
an
epilogue
We wish
MB.
have
been
Member
this
made
tariat
city
will
of
be
the
continuance.
established
to
further
Communist
fiction
tary General told
me
of
GALLAGHER
York Curb Exchange
as
General Partners
and that
MR. THOMAS J. THOMPSON
has retired
To
in
as
h General Partner in this firm
Garvin, Bantel
a
non-
the Secre¬
they will be
&
Co.
Members
the farther
In fact, in order
direction,
York Curb Exchange
New
have been admitted
West,
the
that
G. DANIEL
and
for establishing a per¬
machinery for the Con¬
ference-device's
announce
G. DONALD
prep¬
on
manent
to
GORDON
Member New
to
conference, thorough
West the better.
Exclusive
Ave., N. Y. 10. N. Y.
WITH
The World Peace Council's rel¬
evant
American
Theodore
brick
Langley & Co.
."
New
120
York Stock
Exchange
BROADWAY, NEW
April 17,
1952
"and
leged evincing of obvious preju-
nlennrv
praise extended their
satisfy
the "Public
Relations"
attitude,
the
permanent
secre¬
Beach
CROSS & BROWN COMPANY
or
Heat 3 Guest Houses
furnished—Earlv
Particulars
870 Madison
inn
Garages & Boathouse
Lawns, Flagstone Walks & Terraces.
Price? &
perma-
agenda of the conference
agreed
400 ft. Oceanfront
acres
private estate,
bedrooms & G baths
Offered
weighing of
be:
arations
Ocean Front Year Round Estate
Approx. 4
include
has been SCOred by the S 0
the
nevertheless,
farewelling
istion wholehearted^
must
the proper attitude to be
Chamber
final
*
nently taken toward such economic
on his
parley-ing by our State DepartCollege uient and our business leaders. In
Academv
model;
maneuver.
Weighed
This
the Cooperatives, and Induspiants_on our chamber of
commerce
to do
accom-
TrLe
the
the
The Present Program
dennisport, Cape
room
of
repre-
my
coviet
Commerce
Movement
0-f
at -pirct inclined
first
,„oro
were
German
nongovernmental
nf
us
Our Permanent Attitude Must Be
,
un
consfdThan
in reacting to the Kremlin's recent
1 °
Moscow-ConferC the in\r
independence
Kremlin
should
the
necesslty for
the satel¬
inouirer
tL
was
11C
of
'
imoartial
MR.
15
^
Security Council
1946
the'
nf
nffer tvne
merely laughing it off, as too many
inr>Hnp>ri
tn Ho
Soviet Preparatory Committee,
enc6i
»M0ncive
Mr.
University
was
Government's
Committee."
•
that
•
~
seriously-rather
curtlv
reacting
curtiy
reacting
that it had come
answer
m
'
jjj®®er *
he considered
inquiry as a
conventional
*.u
±
..nifWdinn
^rea*SSt
f
iu
±
merchants
leaders
Mr.
'k£
?
Chair-
jsoiated Incident
an
*
connections and to raise the stand¬
For Sale
Suitable
of
economic
industrialists,
nicians,
the
in
summer
international
an
conference
and
The World Peace
.
connection
The fact that the Conference in
of
in
the
Oskar
man
of
mi.
q
Peace Council
of
Not
turn
f n
from
Movement, held in Berlin in
February, 1951; and the
subsequent meeting of the World
Soviet
claimer
what-the-left-hand-is doing status
was
insisted
on
at
every
pos-
Ques¬
May
Ghar¬
was
me
domination, or even Truman as President with Mr.
influence is persistently pursued.
Truman as a member of the DemThis right-hand-not-knowingnrratir Partv
Ufa?
A. Wilfred
to
by a Russian
anai0g0US to attempting a dis-
ag
Soviet
March 28
the
right-hand-independent-
acterized
,
representation of segregatton of the Conference machinery
on
Expansion
sion
...
This
ganiza-
tional
visa-se-
in
they were re¬
from-the-left " show
famed walkout at Hunter
Peace
Soviet
face of
the
difficulties
usual
This
Soviet
of
during the early UN days;
panying Mr. Gromyko
the
World
ry,.
sentative
ses¬
of
sion
Fiction
independence
lite
were
in the form of
the
The
Lange, a former
Chicago professor,
field.
in
fused.
will
the economic
visa by the
This
papermen to whom
in the United States.
about merely from the worldwide
desire to "normalize" trade.
It
long-term
offensive
a
curing by other foreigners, ineluding all the American news-
efforts, or at least gestures, to hold the next Conference
"needle"
neeaie,
with the
permanent
a
the
making
this
first grand act
cifically
The agency said the
the
*
after
will
But
covering
Department
ard of living
divisions.
Communist
-
Government.
countries, to restore economic
Motors plants assembled 1,300 more units last week
preceding one—the best showing since last September
Motors
anti
only
May secured a Russian
correspondent's cre¬
;
General
than in the
General
the
was
been refused
written
was
and
dentials
ing an'increase of only 1%.
for
Conference
It
May
resident
-
Council
union shop and imposition of the 2y2c. for
for Jan. 1, 1953, and the Sunday as such
the Inter¬
on
the Peace
The generally brighter sales outlook of the steel
industry is
slight balm for the wounds it is receiving from Washington. Hav¬
ing no say on wages and prices in their own industry, steel people
must stand by and take—with protest—what is
dealt them, con¬
more
Mr.
tions' and
Heavy plates and structural are still very hard to
declares, though demand for silicon steel continues poor.
series
a
the
is
Conference.
are
Pittsburgh producers, who stand to lose most by f.o.b.'selling
in an easy
market, says this trade authority, are more optimistic
over the
market than they have been for a number of weeks.
Even
Union.
Most
consumers.
the Preparatory Commission's
participant invitation
list
had
unsatisfactory alternatives.
by Mr. May during his airplane
flight home from the
Soviet
the
eased,
article
Economic
correspondent
a
many
found
This
—
national
non
ducers, the bureau stated.
This
NOTE
statement,
that no one
me,
on
extremely important, he reports that parley's proceed¬
ings substantiated our policy of encouraging abstention, as
instance
II
proudly made to
attitude
second in
War
Conference's
the
management is to be drawn from
Claims for unemployment insurance benefits continued to be
noticeably higher than a year before.
According to the Bureau
of Labor Statistics, non-farm employment in March held at the
February level of 45,900,000.
Except in 1949, this was the only
World
with
ernment
carefully-nurtured fiction of independence. Terming the deter¬
our government's and business leaders' choice of
a year ago.
Machine-tool, metalworking and chemical plants held
quite active, while textile mills continued at reduced levels.
since
clear indication of the
a
real affiliation of the Soviet Gov.
mination of
trifle under the level of
a
as
Kremlin's domination of this Conference medium, despite the
Notwithstanding the sharp recovery in steel ingot production
week, total industrial output for the country continued to fall
for the third consecutive week and
Again,
Correspondent at the International Economic Conference warns
opening gun in long-term offensive. Cites evidence of
it is the
J
last
Continuing Threat
Production
Business Failures
answer
no
to where pri¬
vate
organizations could have
provided the copious funds for
the vast expenses incurred.
By A. WILFRED MAY
Index
And
forthcoming
was
A
Retail Trade
State of Trade
of Moscow
Government
City
Soviet
hosts."
"the
as
the
to
the
and
Electric Output
Carloadings
and
thanks
The Moscow Conference:
Production
5
(1697)
New York Curb Exchange
YORK 5
BArclay
7-6440
63
6
The Commercial and Financial Chronicle
(1698)
On
Stock Answers for
Savings Banks
quality than
look
new
mutual
at
for
savings portfolios in light of recent
ten times over.
Last
week,
on April
15 to be
Governor Dewey signed
into law a bill permitting for the
first
time
in
history, savings
ex a c
t,
ban k
N
e
State
vest
of
s
Y
w
ji
o
of
stocks
portfolio
surplus—
less)
erly
f i
s
qualieauitv
d
e
i
in prop-
securities,
This
in the savings
banks of
just two states—Massachusetts and
Connecticut.
and
portant,
shaking
snaKing,
vault
vauii
yet
Ira U. Cobleigh
it
press
notices
usually
are
small
accorded
time
judge-propelled
than
when
a
hoodlum
hold-up
is
the river
up
to observe that,
f.V(r" .Y
a, cj,ear .le£al green
the rush of savings bankers
in*° 4^qu ,es._j?fs
n fom^t ,?
easy
tess than headlong, and with all
the classes and types of stock
the
snares
to
market tar,
comprised, so^nk
nave
°f aB purchases.
over
Well, where does that leave
in New York State,
shiny
mjt
law does not
new
bank
viously,
pioneer
where
we've
now
picked
stock
we're
in
for
in
work
even
per-
purchase?
Obreal
some
portfolio
man-
Sing Sing. Just wh,y this new law agement here, at least till this law
go so unobserved and so is
liberalized
to
include
bank
unsung baffles me
since here we stocks.
What will be the primary
should
and
up
w0r^
We
in
not
are
the
still
and
sues
public
settled
strategy—what
on
'
the
in
.
first
Mrs.
D.
r^Lniec
have
f^Qnranee
iian"
insurance
Fire
Jnrk
heen
trustees
and
hnv
cific'
"nlnHent
Ltlf
thp
now
sav
Emni^e
Hes banks in the Empire State
mgs banks in
State.
Actually, New York
iieer
no
pio-
this field, all of the New
in
England
states
having
"equity"law for
.
is
an
years.
some
had
Of
states with mutual savings
,
banks, New York
the 11th
is now
where savings banks
be
can
con-
sidered to have the power to hold
tbey
as
at Ebbets
Even
Field,
with
leave
those
all
W
face-it.
us
states
em-
powered to
acquire stocks, actual
have been meager, to
purchases
say
1950
mJ?CtriC' Boston Edison, American
the least. To illustrate, at the
year-end equity investments
and Tel'' Atchison> Union PaAllied
Comical,
General
odds
An
these issues may
this
savings
banks.,,
deferred
sort
there is
some
dividend
prospect of
reductions
sides),
defense
market
rates
money
if
bly,
Thurlow
sinking fund issues where,
with
general
bids
market
fade
away,
geems
tQ
me
should
be
given not only to
egpecial
attention
high factors of solvency and
ing
in
power
nies, but to
particular
the
compa-
the amount of
back
com-
pany
treasury) -built into each
sinking fund provision.
Just to
start the ball rolling, you'll see
listed
below four preferreds of
each type which definitely qual-
in
ifv
■
-
'
,
n
it
subject
cannot
emotional
market
prices
termines
even
or
The
8/10
of
1%
of
the
the
first
things sought by savings- bankers.
IP
Hi After
«
H
that
GROWTH STOCK
all,
it must
chase;
for
properly
should
yearning,
so
vate
PoAAihilUiel
ital
recognized
portfolio
pur-
safety,
yield takes no
and
PiajjU
be
institutional
marketability
account
common
investors, for
gain.
of, and
share, the
not
Once
among
vista of cap-
a
you
the
remove
for appreciation and substitute
for it a determination to insulate
Utah Uranium
against
that will
Selling Under
42c Per Share
This
is producing
company
Uranium
claims,
from
some
of its
will
ore
and
soon
program
on
development
other claims.
The Atomic Age is here. Ura¬
nium may
be the basis of
industries—new
new
fortunes.
If
afford to speculate—
buy Utah common stock now
and put it away for future
growth possibilities.
you can
To encourage
market
into
field
bonds and common stocks.
The
prime
resembles
a
preferred
of individual inY?0™ wh° feek PresIntly S°T
defensive values |in their portlollosIn
rates
tending
more
to
follow
.
sheets
of
in
!i
the
bonds—as
their
on
x
....
traditional
the
senior
new
and
peace
losses and
itself.
profits
equities thus opened up.
Right at
this moment savings bank deposits
in New York total over $12.3 billion.
By
a
perfectly
dazzling
computation, I thus conclude that
5%
of
this equals $615
million—
its
that "light wend its
the
y'
Y.
position
security,
.
H
as
.
a
expe-
York Savings Banks;
may
the
answer
,
to
Inquiries invited from
often
Kodak
Ingersol! Rand
Preferreds
Union
Pacific
_
_
Yield
162
3.75
4%
49
5.10
Sinking Fund Preferreds
*
Current
Rate
Broadway, New York A, N. Y.
Tel.
Dlgby 4-4500
Container Corp.
_
Price
$4.20
M. A. Hanna Co._
$4.25
<
41/2%
and
pes¬
the open antagonism
over
toward
industry by
and
disillusioned
/ / •'
■
such
are
increasing signs
only
who is "tired of being afraid."
one
The
political
metals
conflagration al¬
the intense
expressed today over
104
4.00
105
4.00
93 V2
4.90
Even
years,
and
don
fore
the
the
like
final
of the springs be¬
the catapult
is released./For
environment
to
strong
a
The
might be
it
mind
in
that
those
well
who
if
the
crowd
suddenly
reverses
itself.
has
leader
reestablish confidence in
future.
visible,
bear
hope to anticipate the crowd must
be nimble to avoid being caught
With J. W. Goldsbury
observe a rapidly
tendency to aban¬
and responsibilities to
of
conditions and, with any
of confidence, should
quickly be recognized as selling
at ridiculously low prices by any
objective standard of value. Now
that the basis for a general res¬
toration of confidence is becoming
we
shoulders
can
as
restoration
(Special
mass
cares
be
may
drawing back
become fluid for the first time in
uncertainties
of
to
The
Financial
W. Glessner is
J.
now
W.
Goldsbury
quette Avenue.
Chronicle)
Minn.—Arthur
MINNEAPOLIS,
connected with
Co., ' 811
Mar¬
the
postwar period have unques¬
tionably produced a longing for
security which may well find sat¬
isfaction in
abilities
are
this
er
with
unquestioned. Wheth¬
trend
joy
or
should
fact
viewed
may
be
viewpoint.
is
unmistakably
effect
be
horror is immaterial
investment
an
important
trend
its
national hero whose
a
that
Juran &
(Special
to
ly
diagnosis
be
may
who
Financial
Chronicle)
ST.
PAUL, Minn. —Paul L.
Spooner has become affiliated
with
Juran
Mutual
&
Moody,
Minnesota
Life Building.
the
exists, that
dynamic on
as
of fortunes.
Moody Adds
The
5 MINUTES
investment thinking as on poli¬
tics, and that its correct and time¬
the
knows?
It
FROM WALL ST.
corner¬
For the
N. Y.'s
longer
facilities for
banquets
psy¬
then
largest Hotel
offers foremost
not
was
to worry in 1927 what
going to be the aftermath of
was
meetings
office parties
Looking at the situation statis¬
long
transactions
of
been
in
the
determined
a
minute
total
shares outstanding.
t
the threshold
a
exists.
,v" : clearly
conditions, however,
There
centage
About
3.85%
on
the steels and certain non-ferrous
tically, it is clear that the market
a vast majority of issues
•
'
New York State Elec. & Gas
could be
for
ready
prices of
Yield
103
$4.
Caterpillar Tractor
we
an
today's
outlook
developing.
r
4.10
30
ESTABLISHED 1931
42
it is not difficult to recognize
that
undergone
business
notice.
have
TELLIER & CO.
ner,
of
liquidating
profitable to understand the
3.71%
160
-•/;.-v
'
.
Viewed objectively in this man¬
minor
chological pattern which
About
6%
__
Virginian Railway
ment.
1929, but it could have been quite
Price
6%
brokers and dealers
six
change quickly and without
term,
6%
_
for
practical
Current
Eastman
almost
that Mrs. Roosevelt is not the
was
Non-Callable
Ample emotional rea¬
selling stocks have been
aired during the past 15 months
to
make further supply around
present price levels nominal in
the event of a change in senti¬
sons
recently
Emotional
of
their investment problems.
prices which represent
appraisal of future
maximum
a
these two grouos are perhaps one
of the safest investments under
of life.
gasps
stone
some
for
lame duck government in its final
stocks
and
than
issues,
more
ofi these
amount
prospects.
fuel
depression,
taxes,
capital
actions
has
simism
The
ff"06 ln. Y,
tield, operate,
?
new institutional stockholders
£ America may appear—the New
going to encounter
token
a
Witnessed since the 'Twenties. The
movement, based-on uncertainties
in
from
.
je'
not
day
the effects of fear
even
another
dough will
stamPede *s at all
T
Rate
companies
engaged in Uranium mining.
widely
what
one
have been primarily moti¬
by such fears and the stock
years
market
Of course, only a
stock market.
V\v? 6 °IT
cor-
way into the
the production
tax
securities
held in
in
now
extraordinary boom in the
stock market surpassing anything
and
war,
Its
vated
investment demand for' who
has exempted from the
excess
are
any
seek¬
pessimism
the
balance
,
investment
which
that
new money
the outlook for such industries
opposition; and (2) the magnitude
money
than variations in
appear
.
(1) the vision and determina-
of the
earnings.
Moreover, the
preferreds of a number of corpo,
new
big points
equity law
established de¬
are
controls
growing
porate
rations
the
the maximum conceivable amount
with
large amount of
ing
confidence
of
disclose
to
flation,
tion of the compound interest boys
in getting it passed against sturdy
regular stated income; and market
action
conclusion,
about New York's
are
actually
bond
good
of Uranium ore, the Govern¬
ment
value,
the
doubt first attract the
no
savings bank equity dollar—quality preferreds. This security type
appears uniquely to offer a useful
vehicle to bridge the gap for our
thrift merchants,
between
legal
start
extensive
an
in
logically steer
you
COMMON STOCK
erosion
consideration
pri-
yen
revival
fail
afraid—afraid of deflation and in¬
to analysis of val"es in this ;inYestment area- As a matter Oi
fact, some, of these will deserve
be
that
which
investing public is clearly
means constitute a complete list,, being shown
but are offered aS an introduction a vindictive
will
in
week to the next.
one
pally to higher taxes in 1952 and
(3) safety and uniform regularity
dividends
denied
climate
almost exclusively
of
totaled ;only
must
dealing
security
of
be
state
one
those prices will be from
! yet
-
.
T ,Se are values selected from
todays mar;ket,
They by no
princi-
the
mental
i
Although
on
present
objective' in
be
the
values,
earn-
spin (in the direction of the
speaks
the
,
of the nation.
always
if
Na¬
Assem¬
volumes
B. K.
swings suggests inspection of the
even
the
e
tions
Thus,"
softer.
get
r
o
United
and' offers'
value
both
(on
little
common
due
am
general
a
except at
ket
banking houses holds
prices are too high for
current
purchase; J2)
attractive
state¬
"I
ment,
considerable
On the other hand
length of time.
cannot
lower
materially
and
f
number of
that stock
her
a
price levels lasting
a
any
prices
long-term investment accounts is
be
opinion
our
that
stock
from widespread
severe business
only
depression
in
of being
afraid," made
April 14 be-
three principal reaimportant and informed
financial
in
simple
table
of
well
may
Franklin
steam
can
then
reason
collapse
tired
York
Acquisition
.
to
in that'
quality aside, purchase
group often involves a high pre-'
mium price, dealing in a thin mar-
for
(1)
conservative
a
of
one
by New
year
this
of
single
a
be purchased in
quantity
shares
ermine
qualify, yet the
that not
are
sons:
thege
of
appear to
any¬
below, some of the most elegant
preferreds are non-callable, but,
Electric> General Motors, Procter company purchase will conand Gamble and the Standard Oils sistently serve as a sort of junior
?f CalifornAa' Indiana and New model market Gibraltar. Thus, it
Jersey?
equities
ex-
lady,
opinion
As
invpst-
nrartice
t
p
nf
the
Roosevelt,
but
are
fahr\n
stands
expectations of
into'
t
Qur purposes_the
non_pailahlp anH thp redeemable
non caiiaoie and tne reaeemaoie,.
indicated
ex¬
made by
country's
preferreds fall
be
of
panicky
less
statements
about
habit
on
toptirc9
Hghwatermark'inthe forward dfirhectiontof s,tock P^chase? Will though perhaps the Tiffany pre-"
I ,?<
Jt be centered around prime com- ferreds
the non-callables, the
/nn«prvntlIp
mons>. llke Amen.can Gas and desire to prevent too wide price
thA
Holds change of sentiment could
political is¬
of supporting
pressing ourselves
-
will
Mr.
market,
stock
produce extraordinary stock market boom, surpassing
the
up
it over a little,-and
with
a
custom-built
savings banks to get
0n—preferreds.
We've
^em £0r
t0
of
climate
public is clearly afraid of such uncertainties as
inflation, controls and depression, peace and
taxes and capital losses.
war,
pawed
come
us
nice
our
deflation
emotional
on
Thurlow says
thing witnessed since 'Twenties.
particularly by sinking fund.
caugnt
less
far
So
law,
Thps it is
Commenting
v
tlcular-
.
im-
was
the value
was
Partner, Talmage & Co.
Members, New York Stock Exchange
?f 1%A
fenreds. This yield improvement will, be the big inducement »
PellinS savings banks in^equities^
in'general and preferreds in pa.-
of
(as
was
of commercial bank stocks held in
de-
whichever
held
12/31/50) $178,600,000, and of that
posits (or 50%
of
ferredoutstandmg. there has conff/V*
savings banks
The ! actual
k
in-
their
total
of
states.
figure, $135,800,000
to 5%
up
17
these
n
r
to
assets
in
;
Union
say,
Cleaily Afraid
By BRADBURY K. THURLOW
has both bonds and pre-
Pacific,
combined
like,
company
rung
legislation.
top-,
time now, where a
some
Is
dividend a
And
ferred which earns its
"Expanding Your Income"
Thursday, April 24, 1952
.
The Investment Public
whole lot of bonds
a
like Eastman Kodak pre¬
hundred and
A
number of pre-
a
found to be of higher
are
—items
By IRA U. COBLEIGH
Author of
inspection
ferreds
.
.
or
7th
small
Ave.
per¬
number
of
With discrim¬
inatory taxes killing virtually all
incentive to buy or sell securities
for short-term profits, most
Outstanding values-for
by
stocks
are
bought
today
for
several
years' holding and locked up. It
large
groups! Clark St. sta.
IRT
subway in hotel.
Telephone MAin 4-5000.
v,
HOTEL
st. George
Clark St.
Brooklyn, N. Y.
Bing i Bing, Inc., Management
Volume 175
Number 5110
Chronicle
The Commercial and Financial
.
..
^ X UUU /
izing. The
Wage Stabilization and
Emergency Disputes
By SUMNER H.
limit to the
*
1950,
Slichter, in calling attention
and
efforts at
to
mit
accompanying
the recent
steel
is
case
which it
Wage Board decision.
was
merit of
not
administration of
cedure in
wages
today
before
concerned
with
industrial
tions
(1)
are
group
a
rela¬
the attempt of
the
g overnment
the
during
last
to
year
develop
a
stabil¬
wage
ization
pro¬
(2)
and
gram
the
appropria t e
policies
for dealing
with
disputes
which
garded
a
\*<
t i
n
re¬
are
as cre-
g
public
emergencies.
These
two
S. H. Slichter
Prof.
im¬
c u r-
issues
rent
in
the
other
Board
restrictions
steel
case.
met
government
greatest
test
A
in
the
recent
has
strike
been
the results are far
from satisfactory. The recommen¬
avoided,
but
dations of the Board
represent
an
although these
well-known
men
are
experienced
and
with
bitrators
ar¬
excellent
tions.* The steel
(exclusive of indirect effects
on
social security costs)
19
cents
of around
(13.75
in general hourly wages and 5.1
to 5.4 cents in fringe
benefits),
and 6.0 cents more (2.5 cents in a
general
additional
fits)
in
tions
are
1952
increase,
wage
in
cents
hour in
per
fringe
3.5
bene¬
recommenda¬
The
1953.
and
greater than the 16-cent
wage
union
and
negotiated
increase
by
the
the steel companies in
reputa¬
raises impor¬
case
tant issues of government
istrative procedure.
into question
tween
admin¬
It also brings
the relationship be¬
the principles used in
sta¬
bilizing wages and those used in
regulating prices. Is there unfair
discrimination in the wage-price
stabilization policies of the-gov¬
ernment?
rules that
the
Are
ply to the prices
Even
different
to wages?
important than the
more
stabilization
price
and
wage
ap¬
very
from those that apply
is¬
raised by
sues
question
the steel case is the
what policies should
of
in dealing with strikes
that
lockouts
would
create
public emergencies. The steel case
in
acute form
because it has led the President to
President
claim
to
have
of
been claimed before in
ever
time
But
of
the
steel
is
case
part
of
the
recommended
increase that would take effect
on
Jan.
1, 1952 (12.5 cents an hour)
would give the steel workers total
increases since early in 1943
comparison
wage
of 75 cents an hour in
increases
with
for
cents
the
in
the
of
than
less
automobile workers
period and
same
70
a
rise of
about 60 cents in the hourly earn¬
ings of all factory workers.
The
total "wage increases received by
the
steel
workers
(including 12.5
however,
would be less than the gain since
early 1946 in the hourly earnings
of coal miners, construction work¬
cents
on
Jan.
1,
railroad workers.
ers, or
ers
in
general
If work¬
as
total
payrolls would be raised by
$19 billion a year at a time
when no large rise in the output
about
goods is feasible.
consumer
The
record-breaking increases
proposed
by
the
Board are de¬
fended by both Mr. Truman and
the
public members of the Wage
Stabilization
*A
talk
Board
as
"in
accord
by Dr. Slichter before the In¬
dustrial
Relations
Association
delphia,
April
1952.
22,
work
benefits
Hence,
definitely large number of fringe
benefits
vided
no
permitted
of
one
new
sets
increase
the
on
benefits,
fringe
such
deflationary,
are
into
been
case
15, 1951, the increase
have
of the
instead
about
12.5
9.0
eral
cents
The
welfare
flationary
costs and
wage
(with
demand)
increases.
number
of
Board
not
another
were
in
later
the
of
January,
This
date.
for
1950
or
at
the
In
increase negotiated by
1950, the
in the fall of
Policy
olution
Committee
congratulating
December,
are
This announcement is neither
only
offer to sell
an
nor a
practice in
an
or
a
of
change
wage
Continued
1 Steel
the
would
in
on
page
Labor, December, 1950.
offer to buy any of these Shares,
one
imperil the public health
or would inflict disas¬
safety
or
economic
trous
loss
the
on
155,349 Shares
The
coun¬
has become rather common
during the last six years. " Three
try
times
during this period
Pennsylvania Salt Manufacturing
Company
(in May
Common Stock
1946, in Ma(y 1948, and in August
1950) the government seized the
in
seizure of
order
to
based
railroads is
authority
upon
amendment
given by
Army Appro¬
1916.
This au¬
the
to
of
Act
;
a
($10 Par Value)
The
August, 1950, is still in
Seizure of the
effect.
prevent
subscription warrants, to subscribe for these
Company to the holders of its Common
Stock, which rights will expire at 3 o? clock P.M. Eastern Daylight Saving
Time on May 8, 1952, as more fully set forth in the Prospectus.
Eights,
evidenced
by
shares have been issued by the
thority of the President is avail¬
able only in
time of
war,
and the
Subscription Price $48.50 a Share
country is still nominally at war.
record in the steel industry
The
and the railroad
that
prospect
industry and the
defense emer¬
the
will last for
gency
dicate
that
work
the
out
in¬
some years,
needs
country
well-considered
to
ar¬
rangements for handling disputes
that
imperil
safety
public health or
economic dis¬
or
first
of Common Stock at prices
Price set forth above (less, in the case of
tales to dealers, the concession allowed to dealers) and not greater than
either the last sale or current offering price on the New York Stock
the Subscription
Exchange, whichever is greater, plus an amount equal to the New York
Stock Exchange commission.
threaten
us
The several underwriters may offer shares
not less than
aster.
Let
consider
some
of
the issues raised by the steel case
and
then examine
tional
Copies of the Prospectus may be obtained from only such of the under¬
the problem of
handling disputes that create
signed
na¬
as may
legally offer these Shares in compliance with
of the respective States.
the securities laws
emergencies.
of
Phila¬
'v'"
XI
The main issue in the steel
case
MORGAN STANLEY & CO.
is, not the merit of the decision,
but the process by which the deci¬
sion
was
made.
SMITH, BARNEY & CO.
BREXEL
& CO.
Nevertheless, it is
desirable to examine briefly some
aspects of the decision. The Board
and
the
President
recommendations
formity with
the
tion
of
policies
say
are
wage
the
that
in
stabiliza¬
Board.
recommendations may be in
con¬
policies and still be unstabil-
FENNER & BEANE
,
KIDDER, PEABODY&CO.
But
formity with the Board's stabiliza¬
tion
MERRILL LYNCH, PIERCE,
the
con¬
April 23, 1952.
HARRIMAN RIPLEY & CO.
'
f WHITE, WELD & CO.
Incorporated
STROUD & COMPANY
Incorporated
steel
the
policy—that
offer is made only by the Prospectus.
public policy with respect
emergency disputes.
The practice of calling strikes that
es¬
al¬
cost-of-living
basic
Board's
President
solicitation o/
1951)
event, the departure
treatment
the
of
com¬
purchasing power
union unanimously adopted a res¬
fringe
counted
in
lowance constitutes either prefer¬
workers
Wage
Board
of
the
timating
a
not
wage
be
a
having
any
union
certain
the
from the standard
the
not
support
being penalized in
been liberal in
for
the
that
not
January, 1951, the
apply to the steel workers. After
need
These
cost-of-living adjust¬
the departure was made
wages
maintain
still
and
of
rules
1950.
one
does
do
than
earlier
required.
departure from the gen¬
a
1952
out of line
reason
re¬
companies
the cost-
for
contracts
month
a
contracts
stabilization policies
being violated.
rule
benefits
i'or
wages
or
either
record-
whose
reason
conces¬
effect
ential
workers
The
workers
patterns, the
improvements
that its wage
were
fringe
new
recommend
could
breaking
steel
no
a
ne¬
month
a
rather than of
of-living allowance is to take care
of
the
"exceptional"
cases
of
general
are
proposing
By
liberal
sions that set
as
both
to
respect
in computing
date
base
their
to maintain the
of the Board in al¬
purpose
rights
puting the
lowing departures from, the usual
others, such as health and
plans, shift differentials,
holidays with pay, are just ns in¬
Jan.
on
their
than
more
than
allowed.' ment. If
cents
most
than
waived
circumstances
usual
would
as
but
effect an
quired, and put the wage increase
their
date of Jan.
few
pensions,
earlier
new
a
If the Board had based the cost-
of-living
patterns.
A
set
not
gotiations
industries.
process
pro¬
them
be
may
such does
as
1950 rather
1,
fa
increase
wage
under their contracts, opened
Sunday
for
a
industry took
corporations
(3)
pattern for workers in continuous
in¬
an
so-called
given the
the Board
recommends for the steel workers,
of
allowable.
pay
the
The
1, 1951, the date provided in the
steel contracts, was that the steel
that
Board
steel
Dec.
elec¬
example) in
and
the
that
reason
the
the time of
at
recommendations.
were
percentage
same
1952),
fringe
of
package
are
the
on
of
released
Board's
tion of
to
priations
industry.
conclusion
Board, in his separate state¬
ment
the ques¬
which raises
several
railroads
The
that
limit
no
The
nationwide railroad stoppage.
steel
total
sets
peace.
1950, when the cost of
increase ever granted in the
Board
the
1951)
and
broader
rapidly rising and was
any
for
1950. This
1,
by the remarks of
Feinsinger, the Chairman of
for his office than
vaguer powers
living
expected to continue to rise sub¬
stantially.
In f a c t, the recom¬
mended
advance
is larger than
workers,
Dec.
Mr.
use
lieu of holidays,with pay; and
namely
suggested
Indeed, it has led the
authority.
the fall of
was
or
steel
of
power
sieze the steel mills without clear
estimated increase in direct labor
costs
trical
no
penalty rates of
presents this issue
stabilization arrange¬
virtually
is
allowable cost-
rubber,
■
the
—
est.
the
(automobile,
but
to adopt
to have been
seems
at the time of the last in¬
crease
are
increase than other workers
wage
was
allowance,
of the Board
purchasing
wages
of-living increase; (2) the ignor¬
ing of the fact that the steel
workers in 1947 obtained a higher
biased
be pursued
of
in computing the
by the
adoption
-are
the
on
the
recom¬
case
(1) the failure of the Board to
public members of the Board are
or
The wage
there
and
steel
the usual base date (Jan. 15,
the
raise issues of lasting
rather than merely passing inter¬
their
the
the
date
in computing
influenced by the desire to restore
principal weaknesses in the
in
cost-of-living
the usual date
economy."
liberalizing of pension plans. But
and
ments
recom¬
the
of
industrial
what
clear
not
by the Board
the failure
em¬
prevailing
areas
mendations
not ex¬
standards set
certain
ceed
Senator George to charge that
the field of industrial relations,
they
the
hand,
provided the benefits do
many
the
not "out
were
is
used
con¬
practices
fore¬
the
in
American
of
It
the
most
Wage -Stabilization Board's
cost-of-living) allow¬
provided each of the result¬
ing fringe benefits does not ex¬
ceed prevailing industry or area
practice. Health and welfare plans
may
be
adopted or liberalized
policies."
with
line
The
plus
mendations of the Board have led
the
are
most
portant
On
fringe
(10%
dealing with labor disputes that create emergencies.
The most appropriate topics for
in
ance
linked to rise in prices, whereas
higher wage costs. Calls for legal pro¬
discussion
of
addition,
In
case.
by
point where Steelstand
now
workers." i
or
benefits
the average
enjoyed
front
mean
the
to
workers
in¬
case
fringe-
vanced
not
industry
steel
ployees but which
permits various kinds
concessions
without
counting them as part of the basic
are
with sound stabilization
steel
exceeded
Board
the
cases—as
the
-allowed
Board
of
stabilization and, price stabilization
wage
linked to
are not
was
in the
the
process
stabilization. Points out discriminatory
wage
policies, wherein
did
by
inappropriate for
decision, but the
made, which he contends
differences between
prices
the
exceptional
does
"prevailing
the
which
still
Board
for
In
Board
greater cost-of-living increases in
«
Holds main issue in
area.
ditions
Murray for his leadership "under
wages and working condi¬
tions
of Steelworkers
have ad¬
which
practice
area
practice" to
area
average
the
con¬
allow
to
or
the
Jan. 15,
qualified to per¬
Board
the
the
The
interpret
dustry
adjust¬
or
liberally interpreted by
Board.
strictly
index since
price
1951. This rule is
problem of dealing with labor crippling
disputes, reviews steel wage controversy and some aspects
of
increases' in
for
ments
stabilization
wage
the
permit gen¬
cost-of-living
plus
industry
has been
rules
wage
sumer
Dr.
'
vailing
increases of 10% above
rates
in
effect in January,
eral
4.
k
against the basic wage allowance
provided they do not exceed pre¬
effective
no
payroll increases that
Board's
The
University
Professor, Harvard
set
be allowed.
may
the
SLICHTER*
*
Lamont University
is that the rules
reason
Board
the
of
53
'#
«
The Commercial and Financial Chronicle
Hudson's
Bay Co.—Data—Kippen & Co., Inc., 607 St. James
Street, West, Montreal, Que., Canada.
Dealer-Broker investment
Hudson's
.
City, N. J.)
Co.—Memorandum—Albert de Jong & Co., 37
Wall Street, New York 5, N. Y.
Recommendations & Literature
It
understood
is
that
the
firms
Annual Convention.
California
will he pleased
following literature:
Missouri Research
Canadian
Kaiser
on
Tennessee
Common
Gas
Steel
Corp.,
Transmission
Stocks
Believed
Natural
and
Gas
Electric
and
1
Eligible
for
Corp.,
Banks—Re¬
York
Hickey,
the
1
Bull
Wall
Market
able is
list
of
High
performance
Quotation
Preferred
15 Broad
Bureau,
Averages, both
over
Inc.,
46
Front
Street,
with
Tokyo, Japan.
..
:;.,y.y
*
special
.y-;/
*
reference
to
the
Horner
Co., 300 Montgomery
;yf:
&
Co.,
Street,
52
Francisco
20,
Service
Co.—Memorandum—Barnes,
Goodwin, 257 Church Street, New Haven 10, Conn.
memorandum
a
on
Rockwell Manufacturing
Co.
Can—Review—Stanley
Heller
&
Co.,
30
Pine
Street, New York 5, N. Y.
Corp.—Analysis—Beer
Drill—Data—Raymond
Broadway, New York 6, N. Y.
State
Stock
Original
Issue
and
Transfer
Tax
booklet—Registrar and Transfer Co., 50 Church
April
24,
Field
•
Manufacturing
Corp.—Analysis—First
Corp., 1520 Locust Street, Philadelphia 2, Pa.
y
Boston
Investment
Club
dinner
third
Investment
Club
and
Beach
the
and
!
vehicles
Prior
usage.
the
to
Angeles-Philadelphia-Plttsburgb-St.
of
LP-
to
stock
Group
..
•
summer
....
Bond
Club
of
,n
.
,.
.
.
(Detroit, Mich.)
Detroit-Security
June 17 at the Lochmoor Country
Funds
sales
for
will
ing at the Hotel Galvez.
Twin
picnic
City
at
Bond
the
Club
White
as
Federation
of
Finan-
Club*
June
*
Analysts
nual
Societies Fifth An¬
Convention
...v;,.,;,;
at the
;
Twin
ffreat
sociation
National 'Federation
of
summer
Finan*
Fishbite"
on
Lodge
great extent
loads
during
vehicle
fuel
9Q
over
at
the
Ambas-
May 14-17, 1952 (White Snlphuf
Springs, W. Va.)
Governors
tanks—are
26-state
a
sold
wholesale
outing
area.
to
The
is
with
&
Chrontcle)
Financial
111.
—
Emmett
Paine,
Curtis,
209
the
of
With R. R. Underwood
the
Hotel
jUne 28, 1952
r>«i
v
La.
—
G.
H.
Larson
del
spring outing
Coronado.
Links.
.
(Chicago, I1L)
Traders Club of Chicago
part^&t
..
the
Langford
•'.* ..r
,
Club
~
of
BOSTON, Mass.—Peter deLacyhas joined the staff of
Draper, Sears & Co., 53 State
Street, members of the New York
,
of
■
FOREIGN
Stock
EXCHANGE
SECURITIES
COUPONS
*
1952
Exchanges.
out¬
summer
Country
.
Draper, Sears & Co.
and Boston Stock
Security Traders As¬
,
yyj^
With
Bourke
Bond
(Baltimore, Md.)
the
(Chicago, 111.)
■
■'
-•
Serving banks, brokers and security dealers
(New York City)
York outliw
Albert
37
de
annual
convention
WALL
STREET
:
Telephone HAnover 2-5590
Investment Dealers' Association
Canada
f
derwood, 245 South Grand Street.
Investment
June 10-13, 1952 (Canada)
of
J.
Webber,
South La
(Special to The Financial Chronicle)
Sleepy Hollow Country Club,
Scarborough, N. Y.
Louis
ex¬
level
(Special to The Financial Chronicie)
Association.
Baltimore
June 6,
Delta's
has joined the staff of R. R. Un¬
at
Spring Meeting of the Board of
at
fteatmg
Salle Street.
Gull Lake.
Los Angeles annual
-
peaK
winter.
,une 27'29' 1952 <Coronado, Cal.)-
sador Hotel.
ing
tne
the
toll
heating
neak
With Paine, Webber
Grand-
1Q(;9
LP-Gas
Security Traders Association of
Convention
Bankers
at
of
balance
the
the
at
MONROE,
Analysts Societies Fifth An-
nual
annual
view
Use
products—tanks, gas cylinders and
Jackson
"Operation
in-
internal combustion
extent
Necas
City Security Traders As¬
tank
or
Louisiana and west¬
andde'nabled^it"toS
CHICAGO,
Minn.)
Fairmont
to
engines has been showing marked
the past few years—
a
development which has stimu-
Yacht
(Minneapolis,
advanced
be
increases in
»
20-22, 1952
tanks.
financing dealer
fuel for
(Special
May 4-8,1952 (San Francisco, Cal.)
largest
LP-Gas
Mississippi.
a
annual
Bear
country's
of
vested in Delta by the company.
General Gas serves 75,000 do¬
mestic, industrial and commercial
clusively
Spring Meet-
the
ern
a
Association
outing at
the Whitemarsh Country Club.
.
Inc.,
customers in
a
Investment'June 18, 1952 (Minneapolis,Minn.)
of
Bankers Association
the
company
will
have
acquired through an exchange of
stock 100% ownership of its af¬
filiate, Delta Tank Manufacturing
(Philadelphia, Pa.)
at
Teletype NY 1-376; 377; 378
bank
conversion
farm
^
Traders
Club.
Bond Club of New
Private wires to
Clevelacd-Denver-Detroit-Los
T«
New
of
May 1-2, 1952 (Galveston, Tex.)
June 6, 1952
Trinity Place, New York 6, N. Y.
HA 2-2400.
reduce
to
Lake Forest.
Troster, Singer & Co.
Security Dealers Association
sale
manufacturer
outing at the West¬
june 13, 1952
Bond Club of Chicago field day
at the Knollwood
Country Club in
Primary Markets
Telephone:
annual
Club
Exchange
Firms Board of Governors
Spring
Meeting.
Bausch & Lomb Optical Co.
the
finance
trucks
Pennsylvania Group of Traders Association of Detroit &
Bankers
Association Michigan joint summer outingannual
conference
at
the June 16 at the Detroit Boat Club;
Maryland.
American Optical Co.
of
to
Street,
Investment
Association
y
State
Bond
Country
Club, Rye, N. Y.
(Philadelphia, Pa.)
sociation 17th annual
Securities
pe¬
in the United States,
to apply most of the pro¬
Co.,
June 16-17, 1952
April 25, 1952
May 19-21 (Richmond, Va.)
74
of
copy
(New York City)
°f Philadelphia
(Boston, Mass.)
meeting at the Boston Yacht Club.
&
:>
Haskelite
Y.
a
148
13, 1952
summer
Co., 14 Wall Street, New York 5, N. Y.
Members: N.
Co.,
Municipal
(New York City)
1952
May 16, 1952
Corp.—Review—Dean Witter
second
liquefied
of
plans
by-the-Sea, New Brunswick.
Street, New York 7, N. Y.
Food Machinery and Chemical
&
June
Association of Specialists (New
Stock Exchange) first an-
1, N. Y.
and
retailer
troleum gas
the Algonquin Hotel, St. Andrews-
York
cial
Company—Analysis—Ira Haupt & Co.,
Equitable Life Assurance Society of the United
States—Report
for 1951—Equitable Life Assurance
Society of the United
States, 393 Seventh Avenue, New York
Rates—Free
and
chester
&
Co., Gulf States Building, Dallas 1, Tex.
El Paso Electric Power
the
company,
tanks and gas appliances to both
dealers and consumers, as well as
May 9-10, 1952 (Los Angeles, CaL)
Phosphate
share.
per
The
largest
report—Trans Empire Oils, Ltd., 627 Eighth
West, Calgary, Alta., Canada.
April 24, 1952
Hotel.
&
$9,375
White Eagle Oil Co.
on
report
York
Continental
Sulphur
fering publicly today (April 24)
120,000
shares of
General
Gas
Corp. common stock at a price of
loans, to help finance the sale of
Investment
In
cial
Federal
memorandum
a
Ltd.—Annual
EVENTS
Central Public Utility
Corp., Inc.—Study—F. S. Yantis &
Co.,
Inc., 135 South La Salle Street, Chicago 3, 111.
Peabody & Co. heads
investment group which is of¬
the
Twist
National
Continental
Kidder,
an
Gas
Texas
Bodell &
Ill
Oils
circular—First
San
Calif.
Also available is
Offers Gen. Gas Slock
Manufacturing Co.—Memoran¬
& Co., 14 Wall Street, New York 5,
Bellevue-Stratford Hotel.
America—New graphically illustrated
Public
Kidder, Peabody Group
New
Eastern
'
M.
Convention at the Holly¬
sale,
y'y'
■■
Co.—Analysis—R.
Broadway, New York 4, N. Y.
Illinois
Broadway,
Boston 9, Mass.
Alstyne, Noel &
•
American-Marietta
of
Ill
Equipment
nual dinner at the Hotel Biltmore.
Co., 52 Wall Street, New York 5, N. Y.
California
Co.,
progress
Avenue
y
;
Stocks—Bulletin—Eastman, Dillon & Co.,
Industry—Analysis
Roney
ceeds
New
Tokyo Stock Quotations—Quotation of major stocks—Nomura
Securities Co., Ltd., 1-1 Kabuto-cho,
Nihonbashi, Chuo-ku,
Central
Railway
as
Street, New York 5, N. Y.
Drink
&
the Thew Shovel Co.
to
period—
13-year
a
Coca-Cola Co. and the Pepsi-Cola Co.—Van
Rank
on
Yielding
York 4, New York
Railroad
Soft
Haupt
COMING
National
Annual
Controls
bulletin
a
Empire
latest
Over-the-Counter Index—Booklet 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
market
the
at
(Hollywood, Fla.)
Cos.—Comparative figures as of
1952—New York Hanseatic Corp., 120 Broadway,
5, N. Y.
dum—Smith, Barney
Also available is
Stocks.
the National Quotation Bureau
Convention
Trust
and
N. Y.
Union
a
(Miami, Fla.)
Security Traders Asso¬
Investment Bankers Association
Co., 14 Wall
Cement
Standard
Trans
and
Governors
Nov. 30-Dec. 5, 1952
Co.—Bulletin—Brush, Slocumb & Co.,
Over—Leaflet—Francis I. du Pont & Co.,
Manufacturers
Exchange
Fall
Stock
of
Plaza Hotel.
edition
Industry—Data—Peter P. McDermott & Co., 44 Wall Street,
New York 5, N. Y.
In the same bulletin is a brief analysis
of Sinclair Oil Corp., American Machine &
Metals, United
and
ciation
Co.—Bulletin—Gartley & Asso¬
ciates, Inc., 68 William Street, New York 5, N. Y. Also avail¬
Broadway, N'ew York 5, N. Y.
used in
National
Mass.
Oil
yield
Bank
Robertshaw-Fulton
New York City Bank Stocks—Comparison and analysis of 17
stocks for first quarter of 1952—Laird, Bissell &
Meeds, 120
&
Board
Oct 19, 1952
Co.—Analysis and review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston, 9,
Street, New York 5, N. Y.
Merchants
'
meeting in Los Angeles and San
Francisco.
"6, N. Y.
Riverside
Wall
49
containing data for 56 capital
stock fire and casualty companies—A.
M. Kidder & Co.,
1 Wall
Street, New York 5, N. Y.
Is
Co.,
Laboratories, Inc.—Analysis—Morfeld, Moss
Supply
of
Association
Firms
Republic
Street, Chicago 3, 111.
Pullman—Review—Ira
Municipals and Corporate bonds.
Stocks—1952
York
special reference to General
&
Co.—Analysis—Central
Homes Corp.—Memorandum—Shields &
New York
Governments—Analysis in current issue of "Portfolio Man¬
agement"—Blair, Rollins & Co., Inc., 44 Wall Street, New
York 5, N. Y.
In the same issue are brief analyses of
Insurance
Fuel
March 31,
York 5, N. Y.
Westinghouse Electric—E. F. Hutton & Co., 61
Increase—Analysis—Vilas
Street, New York 5, N. Y.
New
'
'
(Los Angeles, Calif.)
wood Beach Hotel.
Savings
Rate
Broadway,
'
•
.
Oct. 6, 1952
Street, New York 5, N. Y.
New
Broadway, New York 6, N. Y.
Freight
Development—
''
I
Montgomery Street, San Francisco 4, Calif.
National
Time, Inc.
view—Sutro Bros. & Co., 120 Broadway, New
Electric Equipment—Bulletin with
Oil
and
100
Hartnett, 721 Olive Street, St. Louis 1, Mo.
Mountain
Oil and Gas—Analysis—Hill Richards & Co., 621Spring Street, Los Angeles 14, Calif.
Also available
analysis of Federated Petroleums, Ltd., and brief bul¬
letins
and
Corp.,
Building, Toronto, Ont, Canada.
Names—Their
and
an
Harvester
209 South La Salle
Calif.
is
Boston
Johns-Manville Corp.—Review—James Richardson & Sons, 173
Portage Avenue, Winnipeg, Man., Canada, and Royal Bank
history and meaning—Brochure—
American Trust Co., 464 California Street, San Francisco 4,
South
Reconstruction
for
First
York 5, N. Y.
International
mentioned
send interested parties the
to
Bank
Association
Bankers
American
.
Brochure—The
Thursday, April 24, 1952
.
Sept. 28-Oct. 1, 1952 (Atiantto
Bay
International
.
at
Jong
&
Co.
NEW YORK 5, N. Y.
Teletype NY M401
Volume 175
Number 5110
..
The Commercial and Financial Chronicle
.
(1701)
ment of earning power and wide¬
Corporation
loans—A Logical Development
erated
process
spread defaults.
Direct Placement of
curred
causing progressive
The
utility industry was not
seeking large volumes of new
money from outside sources but it
found itself
soon
By OLIVER M. WHIPPLE and STUART F. SILLOWAY*
Vice-Presidents, Mutual Life Insurance Company of New York
large
Asserting corporations
favor
direct
of
negotiations
loans
of
wholesale
to
necessity
ing
high
coupon
insurance
faced with the
were
of
replacing
of
provid¬
many
many
Hold
somewhat
surprising
to
loans consistent with the
also
the
period when
private investors were buy¬
was
ing annuity contracts and single
premium life insurance policies to
obtain the
safety and diversifica¬
tion available
haunting
note the interest in the subject of
memories of the recent past.
direct
ings deposits had behaved during
this period in such a manner as to
placement
of
security is¬
because the practice has be-
sues
eliminate
major
these
Sav¬
institutions
as
a
of long-term funds.
investment trust was then a
The
source
comparative
now
the
and
newcomer,
robust
very
and
rapidly
growing pension funds
very minor importance.
were
of
through life insur¬
portfolios,
a
trend
brought
an
inordinately
acteristic of
inclusive.
Oliver M.
Whipple
F. Silloway
Stuart
financial
of great
events, and further because it is
applicable only to industrial com¬
panies due to the competitive bid¬
ding requirements for most utili¬
during
seems
tion
of
direct
dealing
to be merely the manifesta¬
process
of
perfectly natural ten¬
dency for two parties to discuss a
a
transaction
will be
which
the
to
they
benefit
believe
of
each,
a
tendency
long
mitted
with
another
one
free enterprise basis.
on a
The development of this process
the field of corporate finance
attention,
perhaps
than
more
it
deserves.
v
Securities falling into the broad
classification of
industrials had
surance
their
way
into life in¬
portfolios
company
appreciable amount
time.
As
better
matter
a
industrial
of
and
in
which
to
cash
our
all
exceed
the
fact,
1934
the
about
rity
investment,
total
and
available
so
$64 million and
portfolio
our
increased
was
industry
as a
heard
of
genesis
while
securities
prior
not
un¬
its
had
thereto
Commission.
excellent
This
have been
stat¬
contributing
a
State
were
not
permitted
unsecured
present in
the
early
which would have brought
being in
the
of
disbursements
and
serves
gations until 1928, and it was this
development which really opened
the door to
industrial
investment
was
some
years
any
favorable
usual
as
terms
the
was
or
in
instances on any terms at
all.
Many
individual investors,
probably
all
except
the
most
hardy professionals, were badly
lesson
the
as
a
result
investment
the
of
administered
1929-1933
though
before
In this
to
period,
amounts
of
cash,
deemed
was
in
a
A Progressive and Logical
Development
It
seems
very
clear, in looking
back at this money-market
company
the
bankers
boxing
them
and
in
many
were
not
except very
offerings, and then only
limited
any
to
great
make
♦The
were
caution
well
on
liberal
Commercial banks
with
and
sums
offered
initiative
in
in
investment markets
direct placements
of
private and
Dec.
figures
terms
reward.
operating
and 'restraint
secured
short-term
was read
by Mr. Whipple
University of Buffalo Business
Administration
Conference, Buffalo, N. Y,
April 17, 1952.
paper
before the
shows
insurance
com*
compared with net long-
as
31
of
public debt
each
of
the
all
outstanding
corporate
debt
having a maturity of one year or
from the date of issue, plus
mortgage debt of individuals and
unincorporated businesses includ¬
more
ing
farms.
Public
debt
includes
the total of Federal debt
plus that
as
other form of fi¬
nancing, always lies with the cor¬
poration seeking the funds. Un¬
ject to the
less
cations.
as
any
of
some
the
and
borrower
free
avenue
for meeting
factor
creased to
his
which
opinion would have
my
This
debt.
financial requirements he believes
is best suited to his needs.
Still .another
they
must
be
put
to
work,
and
this fact is well known in the fi¬
relationship remained
by
the
1950.
a
decade, in¬
by 1927 and 51%
As might be expected,
18%
astronomical
increase
in
about direct placement of securi¬
public debt in 1906, including
short-term, 104% of net long-term
legislation, is the basic change in public debt in 1916, dropped to
the demand for investments and 51% by 1927 and to 29% in 1950
ties
over
period of time, quite
a
from
apart
the
influence
the
of
when
the supply thereof resulting from
the increase in size and impor¬
tance
of
savings
the
results
of
two
World
Wars and succession of peacetime
deficits are brought to bear. Re¬
in
public lating life insurance company as¬
to
long-term
private and
and private debt, which are the sets
traditional areas of investment for public debt combined reveals the
such institutions. While this long- interesting result that assets were
relation
the
to
institutions
volume
of
term trend has been altered
11% of the debt in 1906 and 19%
some¬
in 1950.
what by the record-breaking vol¬
of
ume
capital
new
The second table shows the as¬
formation
which characterized the years im¬
sets
insurance
of
savings institutions (life
companies,
savings
II
and
the
armament
program banks and savings and loan as¬
since Korea, I believe it will be sociations) in relation to net longapparent again under more nor¬ term
private debt
only. Thus,
mal conditions. This development these figures include competitive
can
best
two
sets
obtained
following
be
of
World
described
from
investment funds
using
by
figures which
War
and
be
can
omit
low
the
on
Continued
published sources.
one
yielding
on
sell
nor a
page
solicitation of an offer to buy any of these Shares.
Common Stock
($5 Par Value)
.V-V;--..
*.■'■■
Of these shares, 140,600
shares
are
;
being sold for the account of selling
by subscription warrants, to subscribe
for the remaining 121,300 shares have been issued by the Company to the
holders of its common stock, which rights will expire at 3:00 P.M. Central
Standard Time on April 25,1952, as more fully set forth in the Prospectus.
Rights to subscribe to an aggregate of 68,940 shares have been waived and
such number of shares together with the 140,600 shares being sold for the
account of stockholders are being offered by the several underwriters at
stockholders. Rights, evidenced
share. In addition, during and after the subscription
several underwriters may offer shares of common
on
terms
as
■V
Vi'
period the
stock at prices and
set forth in the Prospectus.
In searching for the most at¬
tractive investments at that time,
it
is
significant that for
while
short
a
rate
was
States
Treasury obligations which
being issued in volume to
were
cover
Price
comparatively attractive
a
available
sizable
the
money
manner
Copies of the Prospectus may be obtained from only such
generated
in
had the later and in¬
tended effect of
The
cause
starting
result of
this
investors
to
emphasis
in other
a
decline
long period
a
move
place
was
to
areas
had
of investment.
field, which
been
insurance
unattractive
funds,
due
to
was
the
GOLDMAN, SACHS & CO.
THE FIRST BOSTON CORPORATION
up
to
BLYTH & CO., INC.
most
impair¬
STONE & WEBSTER SECURITIES CORPORATION
MERRILL LYNCH, PIERCE, FENNER &
the principal
corporate investment medium for
life
MORGAN STANLEY & CO.
greater
searching for yield
on
The railroad
this time
of the under*
with
signed as may legally offer these Shares in compliance
r
the securities laws of the respective States.
regularly re¬
The increase in
supply
$21.50a Share
United
and
curring deficits.
this
on
April 18, 1952.
BEANE
hand
govern-
offer is made only by the Prospectus.
kk-''*
a
a
vastly altered pattern. Insurance
company assets were 69% of gross
brought
Gustin-Bacon Manufacturing Company
$21.50
the
aggregate public debt results in
in
261,900 Shares
Search for Attractive Life
sub¬
footnote qualifi¬
fairly constant for
choose
to
municipalities
proper
1906,
railroads, exists,
is
States and
In general, however, in
the assets of life insurance
companies were 13% of private
artificial condition, such
competitive bidding re¬
quirement imposed on many pub¬
The
which
as
years
1906, 1916, 1927 and 1950. Net
long-term private debt consists of
what, in reflection, is per¬
fectly obvious, namely, that the
well
of
men
light of
dollars and
are
in interest rates and
which
at
these
here
This announcement is neither an offer to
of easy money.
for
term
set
of life
assets
panies
certainly an important factor
prompting consideration of direct
placements. And it may be said
period
with its very unusual atmosphere,
that a perfectly natural, self-gen¬
connection
move
wise in
in
underwriting
conditions in
of
aware
skillful
financial
same
ready to risk freely their capital
attractive
the
first
mediately
volume.
policy contracts, and re¬
to meet policyholders' lia¬
difficult years.
it into
many
shaken
were
challenged
highly
Insurance Investments
not conducive to business
very
in¬
with all
1930's
The
very
atmosphere of
capital markets at that time
on
the door¬
borrowers, finan¬
advisers, and financial insti¬
all
influential
The
The fact that
tutions
of
great standing and integrity.
step of his life insurance company.
cial
number
a
1931-1933, inclusive, in
all operating expenses
years
excess
event.
any
to
corporate obli¬
whole
factor,, but other financial forces nancial
community.
were
premium to result in the
explosion of an idea, landing a
on
make from them is
and
per¬
Act of
prevailing conditions. However,
required that securi¬ such a
policy cannot be carried to
ties which are offered, sold or de¬
extremes because of its impair¬
livered through the mails or in
ment of earnings. The plant facili¬
interstate commerce be registered
ties or earning assets of a life in¬
with the Securities and Exchange
surance
ute may
by
which had net incomes in each of
the Securities
in
to
of
over
which
1933
I hasten to add that the valid¬
ity of the conclusion I am about
a
prospective borrower
depicted by these
highly significant to
me,
more
procedure
are
secu¬
by
This
year.
by
characteristic of the
life insurance
our
long-term debt vehicle to
vest in
income
and 1933, a substan¬
tial amount of net cash was
gen¬
for
to this
credits had made very sparing use
of
withdrawals.
In both 1931
erated
in
mercantile
period, as a matter
consideration of the subject with
of financial policy, most life in¬
the assumption that direct place¬
surance companies built
up large
ment of
up
they appeared in
example, in my own
we did not have a single
company
re¬
years.
force.
bilities increased in each of those
Some observers of this develop¬
ment are inclined to begin their
not
later
in
during the past two decades has
been the object of considerable
need
even
For
paying
routine
tively small amount of good qual¬
ity mortgages available in those
I
it
was
deal
to
its
stability. The experience
those dark years showed
which will endure so
$50 million in that
the two parties are per¬
formance
as
by
the
whatever
that
sure
by these companies,
failed
The
unique
a
and
figures
some
if it would have taken
than
utilities
am
that people made great sacrifices
to maintain their life insurance in
year
ties and rails.
institution
fact, I doubt in
lic
I
insurance
nature has certain elements
very
it has arisen
large
1931-1933, obtain funds and, actually, the life
insurance companies in New York
com¬
years
life
however, is quite
pany,
come
quite commonplace, because
as the logical devel¬
opment of a sequence of natural
the
A
cases
In
mind you of the virtual stagnation
of building activity and the rela¬
any
by the surrenders, lapses and pol¬
borrowings that were char¬
While the trends
oc¬
busi¬
the
I
icy
funds.
as
not found
quickly and humbly con¬
fess that even its appetite for in¬
vestments became decidedly jaded
which
amount of money into the com¬
panies which had to be invested.
As prejudiced as I am for the
great institution of life insurance,
must
evolution
and their alert financial
advisers to seek out life insurance
nessmen
was
ance
is
As
the
this,
substantially lower rate of
a
This
free enterprise system for financing industrial concerns should
not be hampered by artificial restraint, and
suggest require¬
ments of SEC Acts should be restudied.
It
as
return.
by assist¬
institutional lenders.
position
their holdings with issues
security market, and stress its initiative
Sees place for investment banking
ing in presentation of facts
of
companies
always with borrower.
firms in giving technical advice to corporations and
of
amounts
result
a
financing methods, insur¬
ance
company officials cite growth of direct placements in
recent years.
Point out direct placement is logical developmen
a
bonds at lower interest rates.
when they are free to choose their
is
in
the direct result of the easy money
conditions of the times to refund
of
9
DEAN WITTER & CO.
■
46
10
The Commercial and Financial Chronicle
(1702)
.
Thursday, April 24, 1952
.
.
avoid the tax advantage requires both capi¬ to 30.
The
considerable
safety
previous era and tal and the risk of loss. As a mat¬ factor of a weighted "dollar aver¬
still provide
a
simple, effective ter of fact, the value of the re¬ age," in which the cost will al¬
way
for the average worker to stricted stock option as an incen¬ ways be less than the straight
become a contributing participant tive form, even to executives, is arithmetic
average of the monthly
in a capitalist economy.
probably being somewhat exag¬ prices, is not only a protection to
^
individual
In broad perspective, the prob¬ gerated at the present time, with the
from
being
the
further
disadvantage
that "hooked" at a temporary top but
lem is essentially a social prob¬
many
independent
stockholders also a protection to the
lem, arising out of the lack of an
company,
resent
the
implicit
dilution
of since the danger of recrimination
investment mechanism in our so¬
their equity.
One large company from
disgruntled
ciety adequate to cope with the
employees
is
enlarged
dimensions
of today's recently went to some lengths to minimized.
which
Employee Stock Purchase Plans
By LOUIS STONE
Ilornblower & Weeks, Members, New York Stock Exchange
designed to
are
headaches
of
a
,
Mr.
Stone, calling attention to investment along with
lets for capital
funds,
market, describes
new
Advocates having
as
out¬
new
dominant factors in current stock
type of employee stock purchase plan.
employees buy
company
basis, without contract commitment
stock
on
monthly
part of either employ¬
on
available for investment. devise a stock option plan to cover
all
employees
before
realizing
practical matter, some 60,that the plan would not feasibly
000,000 workers in this country
are
effectively cut off from any accomplish the essential purpose
employees while stock is under purchase.
contact with investment lacilities, —giving the average employee a
sense of being a part of a common
To the increasing confusion of the 1920s and went out of favor the income available for invest¬
the*so-called market analysts, the in the 1930s, for obvious reasons. ment by these small savers is, in enterprise rather than giving him
a call on the stock market.
of low salaried
em¬ toto, tremendous, despite inflated
stock market refuses to conform Thousands
to its so-called normal pattern— ployees
and
inflated taxes,
found themselves living costs
Employee stock purchase plans,
reactions
d o
"hooked," in 1929-30, with long- which are necessarily only one as distinguished from stock
option
side of a two-sided income and
not
term commitments for
the pur¬
develop
plans, fall into two general classes
when they
chase of stock at inflated prices, outgo picture. Most of this avail¬
—one,
plans which involve the
should, nor do
payable out of reduced or non¬ able investment money goes into sale of new unissued stock
by the
tallies and
existent
incomes.
As the stock 2i/2%
media,
through
savings company, and,
two, plans involv¬
market continued its precipitate banks,
etc.,
and
government ing purchase
penetrations,
through the company
decline into the 1932 depths, it be¬ bonds;
a
surprisingly
large of
tops and bot¬
already (outstanding stock on
came
more
and
more
apparent amount goes into gambling in all the market. Most
toms, and all
employee stock
that most of these commitments forms, on which the total gross
the other tech¬
purchase plans today fall in the
would never be executed. Nothing turnover is estimated as high as
nical manifes¬
first category and still adhere to
is worse than "paying for a dead $30 billion a year, the profession¬
tations
of
a
the old formula, perhaps unwise¬
free-swinging
horse," and corporate policy gen¬ als' cut representing a negative ly—the
employees are given the
market
econ¬
"invested."
erally managed to effect some return on the total
right to buy new stock from the
compromise
under
which
e m- The
simple fact is that invest¬
omy.
Perhaps
company,
at an arbitrary price
these move¬
ployees escaped from their bond¬ ment channels do not reach the
generally
below
the
prevailing
ments
never
age, at some loss, of course, to the worker; no securities firm wants
market, with payment on an in¬
the $25 a month investor, except
other stockholders.
did have prac¬
stalment
basis, financed by the
under an investment trust instal¬
tical
validity
In
the
1930s
any mention
of
company
or
by
a
cooperating
except in hind-sight reconstruc¬ employee stock purchase plans ment plan, and no security sales¬ bank. The
disadvantages of this
tion, and perhaps they will again was anathema to corporate man¬ man can make a profitable effort formula are
fairly obvious, the
to reach the rank and file of the
be reconstructed out of the seem¬
most important being that the em¬
agement, and it was not until the
ingly formless pattern of the pres¬ late 1940s, after the war period of American working class. The an¬
ployee is again "on the hook" at
swer
is equally simple—the cor¬
ent market, but the fact remains
a set price.
payroll deductions for government
In some cases, the em¬
that the market certainly
system must
provide
a
appears, bond purchases, that the subject porate
ployee has the right of cancella¬
channel through which the excess
to those who are familiar with the
again became of interest.
Since
tion
if the stock
goes down
in
funds it pays out may be legiti¬
old yardsticks, to have changed its
1947, almost 100 large companies
price
before
he
has
completed
character.
and
All of
which
healthfully brought payment for
serves
whose stocks
are
listed
on
the mately
it, but this cancella¬
only to point up the now estab¬ New York Stock Exchange have back into the system at something tion provision seems too
heavily
better than a 2*/2% return to the
lished truism that the American adopted
employee stock purchase
weighted in favor of the employee
Some
form
of
em¬
investing public
has taken
the plans, some on a broad scale cov¬ individual.
—he can't lose, and he can
gain
ployee stock purchase program is
place of the speculating public ering practically all
employees,
very substantially, all at the ex¬
and the Wall Street professional others on a limited scale for a se¬ obviously indicated;.the question
pense of the independent
stock¬
becomes one of form.
as
the dominating factor in the lected
group of "key" employees.
holder, who may see stock going
market's action. Investment trusts Since
out at considerably less than its
1951, when restricted stock
Restricted Stock Option Not
and
pension
funds,
and,
to
a option plans came into favor as a
market
value.
Other
disadvan¬
Suitable
smaller extent, brokerage house
result of special encouragement in
tages of the old formula are the
The restricted stock option plan,
solicitation of small accounts, are
necessity for stockholder consent,
the new tax law, the subject has while
the primary sources of this new
offering certain incentive the
immediate
dilution
in
the
and tax advantages to top
flow of funds from the
layer equity, the uncertain
public; one necessarily developed added in¬
small
executives
if
the
stock
farther source is developing at a
market
terest; many company manage¬
changes in total capitalization as
fairly rapid rate—employee stock ments believe, and rightly so in advances, is not suitable for broad employees take down their stock
scale use. In the first place, any¬
or
fail
to
make
purchase plans. In the following most cases, that the rank and file
payments
on
thing so complicated as an op¬
schedule, and the implication of
discussion, we outline some of the of employees may resent the tion lis far
beyond the rank and company endorsement in the fact
income
employee. Says this plan would not require general ap¬
proval of stockholders, and would also avoid heavy losses to
er
or
characteristics
rtew
of
movement,
this
relatively granting of stock participation
which
holds
in¬
favorable
terms
to
the
teresting social implications in ad¬
few
at
the
been
an
intensive study of the
effect
on
its
potentially powerful
the stock market.
tire
,
The
old
type
purchase plans
This
employee
came
stock
into favor in
announcement
top.
employee
The
result
stock
on
favored
dition
to
As
file's
appears as a matter
of these securities for sale,
style
stock
purchase
has
of
en¬
some
offer
to
buy,
or as a
plans
profitable
a
no
circumstances
an
or
both,
purchase
to
option
degree of capital,
six months to
solicitation of
in the
sec¬
place, financing the exercise
purchase how,
of record only and is under
or as an
comprehension;
ond
problem and the adoption of many the
new
and
for
be construed
offer to buy,
as
any
the
NEW ISSUE
an
K
requires
or
holding
secure
of such securities. The offering is made only by the Prospectus.
knowon
to
necessary
the proferred
offering
that
the
Telephone,
Westinghouse Electric, Cincinnati
Gas, In¬
ternational Harvester, Dow Chem¬
ical, Inland Steel,
Johns-Manville,
Minnesota Mining, etc. But it
ap¬
rather
pears
stick
to
the
ill-considered
old
formula
be
can
to
with
disadvantages when
the
gained
all
same
with
avoidance
a
companies
United
the
Plan
Sun
The
stock
newer
purchase
pooling
type
of
plan,
together
funds
employee
increasingly
of
in the
a
simple
employees'
for
monthly purchase
facilities.
One
stockholder
since
and
and
other
formula.
Manufac¬
1916,
there
features
to
are
which
the
point
is
usual
that
no
approval
fected.
Another
is
no
that
with
the
the
—
since
is required,
no new stock is
being issued
the capitalization is not af¬
important
financing
attendant
is
point
involved,
complications
employees
stock each month
acquire
more
they go along
they have funds
commitment by the
as
to the extent that
available;
no
company
by the employees is
or
required,
and
the
plan may be
time by either
discontinued at any
party.
A
The
Simple Plan
actual
working
of the
out
type plan, particularly in the
surprisingly
simple
form
now
used
by United Merchants and
new
Manufacturers, is not difficult, but
it
does
ting
involve
skill in
some
set¬
the required bookkeeping
procedure and arranging for a
up
custodianship of the se¬
curities, pending their being taken
down by the employees. Another
problem, which each company has
proper
to settle
as
policy matter, is the
a
extent of the company's contribu¬
tion,
if
One
any.
manufacturing
representative
adds
company
to
the employees' monthly participa¬
tion
10%
of
the
amount
con¬
tributed
by each employee earn¬
ing less than $5,000 a year and 5%
for
those
earning
companies, having
direct
labor
tribute
cents
for
The
more.
cost,
tend
of
to
con¬
about
employee
every
oil
much smaller
a
average
an
50
dollar.
Scott Paper contributes on a slid¬
ing scale from 10% to 20%. Some
currently drawing up
plans do not intend to contribute
done
their
viding
venient
funds,
the
of
The
outstanding
conduit
plus,
chase
prices.
arbitrary
continuing moving
joint monthly
Thus
if
$25
the
pur¬
em¬
month,
a
down from about 7%
of
about
probable
the form
tion
be
is
buy
one
share
one
month
may
when
the price is 25, IV\ shares another
month when the price is
20, and only
% of
a
dowi^ to
share in
an¬
other month when the price is
up
that
of
a
cus¬
con¬
in the
round
a
pur¬
case
incentive
no
of
lot, it
in
contribu¬
although it may
fairly inexpen¬
helping
labor
as
method
in the
$50
company
needed,
advisable
sive
a
of
relations.
The potential market
this type
of employee
plan
estimated.
has raised
from
gone
if
should
not
the
newer
be
pur¬
under¬
American
Telephone
than
$270,000,000
more
new
open
company
1947
in
its
issue plans, which
presumably
into
impact of
stock
employees since
would
have
market purchases
had
type plan;
become
he
1%
joint purchase of
of the
pay,
individual
an
to
and continues to have this amount
his
expense
come
deducted
from
workers'
the rela¬
involved in
course,
siderable saving to the worker in
brokerage and odd lot costs, which
than
striking advantage
subscribes
the
con¬
bookkeeping and the
todianship. In view of the
amount
a
average of the
for
of
pro¬
and
the
chase
other
no
merely
automatic
tively small
joint
market, without any
involvement
in
part
an
successive
ployee
Oil
preferable
seem
employee is
April 24, 1952.
and
Roebuck,
numerous
is
of such plans is that
Kidder, Peabody & Co
as
Sears
price is set—the cost price to the
be obtained in any State in which this
announcement is circulated
from only such of the underwriters, including
the undersigned, as may
legally offer these securities in such State.
with
by
such
Socony-Vacuum and
Merchants
Paper.
by
a
providing collection and purchase
may
adopted
turers, and long used in principle
by Standard Oil of Jersey, Scott
chase
company
Copies of the Prospectus
ad¬
modifications
case
of
headaches outlined above.
stock
Share
*
type
recently
various
major
"continuing
anything, figuring that they have
American
available
Price $9,375 per
plan,"
this
the
companies
being adopted,, calls for
Share
a
of
ployee stock ownership, as many
leading companies certainly are—
New Type
Common Stock
as
from
vantage
minor to the employer who is
really sold on the value of em¬
considerable
General Gas Corporation
acted
are
its
120,000 Shares
has
company
principal in the sale, and has re¬
ceived
the
employee's
money.
Perhaps all these disadvantages
benefits
Par Value $5.00
per
Aside
a
adopted
more
the
than 40%
Company's employees have
of Sears
stockholders.
In
the
Roebuck, the gradual
case
ac¬
cumulation of funds in its benefit
plan
has
resulted
in
the
em¬
ployees' present ownership of 25%
of
the
company's
outstanding
Volume 175
Number 5110
.
.
.
The Commercial and Financial Chronicle
(1703)
show
stock. Simple arithmetic can
relationship
the
between
sion
A Reversion to Sane
em¬
ployee purchasing power and the
market valuation of a company's
And
with a
$100,000,000 sales volume, a $25,-
equity—assume
a company
000,000 payroll, and
In
stock.
such
$50,000,000
a
of the
valuation
market
a
$25
a
a
the market lor the stock, or
a
$25
at
year
2,000,000
shares
becomes
.possible
worker
outstanding.
It
ownership of the nation's
corporate wealth
on
,
scale
a
bis
cusses
in interest rates,
be¬
of
some
our
dicates
over
recent years in¬
healthy
a
direction.
this
in
trend
the
to
-
reading
of
"Questions;
Questions,
economists
are
*
.V'W; Effects
'
reverting ■"> to
Rates
conven¬
tional
tra-,
or
ditional
:^JH^ordlrl5
concerning the
b 1 ems
p r o
raised
Pat
ations—John
Patterson—Har¬
-
Street,
cloth—$3.00.
...
"
questionnaire"'
relate
the
Y.—
New
1
ques¬
raised
by the Patman
33rd
Brothers, 49 East
York
16, N.
&
per
C.
then
men
ate
to "
(1)
o-
\
•
;
.
policies,"
.
etc.,
interest rates
mieiest rates
are
are
>■
by
.
bottom, the objection
many
or
policies is that they are too
effective. That is, critics fear the
(G). In other words, these theor
thafthe'market"
maintain
insensitive
to
relatively
Under the
lowed
period,
.
in
monetary policy fol¬
the
post-World War II
had no reason for
banks
increasing their lending rates be¬
cause
they were able to increase
erence) and relatively insensitive
....
deflation—de¬
to'the
is
small
changes in interest costs and rela-
.
of
consequence?
pression, failures, and unemploy-'
ment—more, than they fear the ef¬
fects of inflation. They prefer the
malady
cure
expenditures
government
their
ces
and lending resour¬
selling government secu-
reserves
by
rftjeslo the*Federal Rese^e
.ftahili^H
it
prices
oldUlJ.IZ.cU
.
1.
Tx
,
and
banks
?
at
.
®
- low
.
...
investments
-j.
^
tions
side)
,e'»
on me aemana rates jf. however, the price of
^weakening reserve posi-government securities had been
of
banks
and
even
.
X.
(on
the
supply
aflowetT^a-^
fall
" the ^commercial
jeopardizing the ®110.wea t01Jlauu' tnue commercial
JepPatai^"& irie banks would have been reluctant
result,
t0 take
serve
inflationary pressures" inFederal
Reserve
discount
have some effect in curbing inflation or large increases will not
(2) the ma-r policy, open market policy, admin- cause
collapse (unless^ we assume
Hup tn.a hrpflk-
thaf fhp rnllancp
p
_
disregarded
solvency of financial institutions t
1
•
nrrlpr t
nhtain
as are changes in rehoiding heavy portfolios of secua
ln
funds to lend to private borrowers
balances, liquidity and price ritjes
of ^ earning assets, etc., and the
"
'
^
Y/
:
or,
they
would
have
charged
^specific ways in which restrictive
These arguments are not conhigher rates to offset the loss incredit policies are expected to re- sistent.
Either small increases
the
strain
Bell
w.
of
monetary policy and
.
the
volve
j.
appropri¬
content
in
in
is
nolicies
policies,
lending
changes
cnanges
it
If
de-
tion
slight restraints upon expenditures. However, they admit
:inflation
practically
At
0 ,this question, if aiso
Of
OT credit
(a)
upon
two;
The
broad
"effects
effects
<
.V
-
tions
Y Association Management with
special reference to Trade Associ¬
in-
m an
quiry. :'
'•
combating
ombating
•
the
on
even
opponents have to credit restric¬
.
the
by
effect
greater
effect on the supply of funds. Effects on the supply of funds have
interest rates is ineffec¬
^ c°hstrued, fails to elicit
.opinions sought concerning the ef- that drastic increases in interest
(ectiveness of "fractional changes
rates are effective in curbing loans
1" interest
ac
a
moo no
r»*
1
i
hi, interest rates ' . as a means of orirt ■ investments ton vii
the demand
v
views
have
mand for funds and
ducements to save (liquidity pre!-
'
'
:.....•
more
changes
been
modest in-
a
to
on
Keynesian economists.
in
V2
e.g.,
savings
and investment and on the policies
of
lending
institutions.
Rate
tively insensitive to moderate in-
of Changes in
Interest
.
were
tightening of money,
1%, has some effect
significantly reducing per¬
consumption (C) or increas¬
ing personal savings (S) and de¬
creasing possible expenditures on
plant equipment or inventories
replies to comprehensive data submitted to
Economists,",thesubcommittee
on
general
of "Replies credit control and debt manageconfirms my.vmqnt. ,,;
<
•
production,
sonal
2
etc.,
a
from
conclusions
in
tive in
gen-
the
for
Part
in
and
Harvard
at
like
argument is that
crease
(I)
Chapter X
study
decisions
fall
the
largest cor¬
The
porate units
businessmen's
attendant
drawn. In Keynesian terminology,
Dis¬
of inflation,
as a cause
in President.
powers
its
increased unemployment, etc.; but
by the same token, a moderate
of the effects of interest costs
vey
which
Ownership of
Opposes placing ultimate monetary
Federal Reserve Banks.-
thirties;
by Keynesian theor'
similar
regarding effects of changes
credit expansion
liberals, and certainly the experi¬
of
traditional views.
or
rates, e.g., 4 to 5%, would undoubtedly
check
inflation
and
might even cause deflation with
policy in stimulating busi-
s*
on
eral and selective credit controls and government
yond the dreams of the so-called
ence
conventional
more
and others' views
own
to
dence provided by an Oxford sur-
on
ian doctrines to
-
visualize
to
on
economists' replies to questionnaire sent out by
Subcommittee on Monetary Policy of the Joint Committee on
the Economic Report, Dr. Bell notes a reversion from Keynes-
share for
a
and
These theorists base their
arguments on slender empirical evi-
,
Commenting
twenties
recovery m the early
experiences
Monetary Policy
40,000
late
and to the rationalization of these
a year
would bring $1,000,000 a year into
Bhares
ness
1
Acting President, Economists' National Committee
the
in
apparent futility of the easy-
money
Professor of Economics, Northwestern University
month contribution by 40% of 8,300
employees averaging $3,000
the
By JAMES WASHINGTON BELL*
common
case,
Monetary
Credit Principles
11
loss
order to obtaln
curred. Again, had they not been
assured
future
that
rates
not be allowed to rise
ic
would
appreciably
d^ffn^Sncf'in'the'inteel
ihi.n?5?L.for.,!tbe „f?™"latl?51u!
ff." dow-n in confidence in the integ¬ they would have been less liberal
Wright monetary policy. Response to the qutrements of member banks, etc.
Continued on page 42
first
group
of
questionswas, I take it that the real issue con- rity of the monetary unit). High
Pennsought, from economists-because cerns the effects of changes in insylvania
Press,
University
of
of
their particular interest and; terest rates themselves, and this
Pennsylvania, Philadelphia 4, Pa.
concern
with theoretical matters, involves all considerations influ—paper—$1.00.
'
The mere fact that emphasis of
b°th ****** (commercial This is not an Offering of these Shares for salt, or an offer to buy, or a solicitation of an offer to buy,
Commercial Bank Activities in the questionnaire was placed on bank.and nonbank) and borrowers
any of such Shares. The offering is made only by the Prospectus.
Urban Mortgage Financing—Carl monetary
policies and controls
'and 'goveirnment) deF. Behrens—National Bureau of primarily and on debt manage-.cisfions.
.
Character and Extent of Over-
the-Counter
Markets—G.
Hoffman
University of
,
Economic
Inc.,
Research,
1819
Broadway, New York 23, N. Y.—
cloth—$2.50.
ployees
Fred
—
Foremen's
Rudge
for Em¬
National
1776
—
Inc.,
Institute,
secondarily is evidence that
is again being directed
attention
to
;
Information
Economic
ment
instumentalities
were
instumentality of control in
as an
formerly prominent but which in
stabilizing
the
'■
thirties
Fiscal
have
fell
into
disfavor
be-
The
and
direct
place.
But,
controls -took
that
now
we
our
view
of their alleged inadequacy, r since
cause
Broadway, New York 19, N. Y.— their
cloth.
which
This question calls for a reappraisal of the role of interest rates
the
theory
140,000 Shares
economy,
most
commonly held
impact
of
Keynesian
The Tucson Gas, Electric
be that monetary
seems to
policy is ineffective
as
a
and Power Company
had
experience with unor- ing device because its influence is
extending exerted exclusively through its efand a half, with fects on interest
rates; that interCreative Chemistry — Murray
dubious success, we are veering to est rate changes have no
signifiCampbell and Harrison Hatton—
the modus operandi quo ante with cant functional
relationship either
Appleton - Century - Crofts,
Inc., new faith in mechanisms which, to the
amount of saving, on the
New York—cloth—$3.50.
worked
in
the
past and which one hand, or the amount of inOur Last Chance in Germany; presumably will work again today, vestment, on the other, and no efHerbert
Dow,
H.
Pioneer
in
thodox
over
management
decade
a
At long last, we are beginning
Current Affairs to question the illusion that perPress, 25 Vanderbilt Avenue, New ennial cheap money is always
York
17, N. Y.—Paper 50c per good for the economy and are
now again coming to realize that
copy (three copies $1).
Stop, Look and Negotiate—James
P. Warburg
—
interest is
Politics Is What You Make It—
that
and
a
cost to the
interest
borrower,
the
affect
does
Joseph E. McLean—Public Affairs
supply of loanable funds. We are
Inc.,
22 East 38th again beginning to realize that
Street, New York 16, N. Y. — tighter money may be effective
in
paper—25c.
' .■ ■ ■ -■;
curbing inflation; that small
Committee,
Speculative Merits
Stock
of Common
Fried—
Warrants—Sidney
Dept. C, R. H. M. Associates, 220
Fifth Avenue, New York
—$2.00
1, N. Y.
free descrip¬
(or send for
in
changes
interest
folder).
Common Stock
($10 Par Value)
on income and prices. In other
words, the classical theory of interest is discarded. The classical
an<^ neoclassical economists hold
that interest is the price of waiting
or saving necessary to bring forth
capital
funds
in
the
Price $26.50 Per Share
market—
which funds are in demand by
borrowers who see profit prosPects in the use of such funds in
making capital expenditures,
Copies of the. Prospectus may be obtained from any of the several under¬
writers only in slates
My own view is that the old
economic effects as well as large, theory still holds despite the atConsciousness
of
these
effects tacks of the liquidity preference
is being felt abroad as well as theorists. I believe that
changes in
in
the
United
States.
We are '>interest
rates,
both' small
and
becoming
of
gers
in which such underwriters are qualified to act as
legally be distributed.
■dealers in Securities and in which the Prospectus may
have
rates
cognizant of the dan- large, do exert an influence on
monetization,
a businessmen's decisions and can be
budget, made effective in stabilizing busiSuccessful
Employee
Benefit perennially ^unbalanced
the
hazards
of
insulating par- ness.>The amount of the change is
Plans—Prepared by the editorial
ticular
sectors
of
the
economy a matter of degree and the effecstaff
of
Prentice-Hall,
Inc.
—
Prentice-Hall Inc., 70 Fifth Ave., against the impact of inflationary tiveness depends not only on the
forces. Finally, in the welter of rates but also upon business
psyNew York 11, N. Y.—cloth—$8.85.
piecemeal adjustments we see a chology,
expectations, etc., and
tive
Light
stabiliz-
I
The First Boston Corporation
Blyth & Co., Inc.
debt
Stone & Webster Securities
Corporation
Dean Witter & Co.
White, Weld & Co.
,
With Looper
new
& Co.
that
(Special to The Financial Chronicle)
now
associated
above
to
we
all
the
injunction
must
maintain
the value of the dollar, for without
JOPLIN, Mo.—Ernest A. Bailey
is
meaning
with Looper &
confidence
dollar
in
a
relatively
controls
no
stable
work prop-
can
Co., Joplin National Bank Build¬ erly. In the course of time, we may
ing.
yet discover that a convertible
dollar
J. Barth Adds to Staff
FRANCISCO,
Calif.
been
—
Ralph. E. Rollins, Jr. has become
connected with J. Barth & Co., 404
Montgomery
the
Street,
New York
and
members
of
San Francisco
Stock Exchanges.
the safest
manageable dollar
(Special to The Financial Chronicle)
SAN
is still
able
to
have
we
most
far
so
devise.
There follow
comments
and
some
the
economic
abstracted
from
and
statement
prepared
more
the Subcommittee
trol
and
Debt
Committee
on
on
by Dr, Bell
General Credit Con-
Management
the
for
Economic
of
the
Report.
Joint
the
Robert W. Baird & Co.
terest
rates
fighting
increases
not
are
effective
in
inflation, but that large
(2 to 4%
cause
chaos
or
and
5
to
10%)
disaster
^e. money market and will
in
4-Up
Centnd Republic Company
origin
Can
of
fail,]rp
'."re
nf
anomalous
historically to
rPctripfiV^
0Y r.eslrictliYe
policies to restrain Credit
Schwab?
Walston, Hoffmar
Co.
Woodward, Rogers & Zuber
Pasadena
this
be traced
Incorporated
First California
Estabrook & Co.
The Milwaukee Company
Hill Richards & Co.
Ellis & Yarrow
Allyn and Company
Lester, Rynns A Co.
(Incorporated)
Newhard, Cook & Co.
Shuman, Agnew &
A. C.
Butcher & Sherrerd
FJworthy & Co.
Grimm & Co.
Davis,
Mr
unpany
& Co.
cGoodwin
(taggs&Uo.
irmick A Co.
pre-
-cipitate deflation.
view
William R. Staats & Co.
Incorporated
A curiously illogical argument
has
become
popular
among
Keynesian theorists: viz., that
small increases O/4 to V2%) in in-
The
*A
of
Refsnes, Ely, Beck & Co.
time.
will
answers
conditions
E. F. Hutton & Company
Henry Dahlberg and Company
nr-nrlii
Credit
expail-
Corporation
»
April 2d, 1952.
Sutro & Co.
Ilenr^
Swift & Co.
12
(1704)
The Commercial and Financial Chronicle
No
Federal
Budget Not Excessive
contraction, for drawing the reins
not
pessimism—for
negative thinking.
I
conceived, inequitable and destructive of incen¬
Urges Congress adopt Canadian principle by allowing
investors partial tax credit on dividends received on common
Also advocates shortening present six months
I should like to
"Where
None of
do
we
begin by asking
go
from here?"
of
knows the
us
the
proper
that
and
proposed
and
will,
of
that
ahead
our
of
country
our
the
spent.
being
by
to
and
large,
present period of doubt and fear
shall
we
with
emerge
a
durable
not
as
our
policy,
w e
11
life,
merely for ourselves, but for
neighbors throughout the
world.
There
those who might say
are
as
that such predictions and convic¬
other tions border on fantasy—of the
general policy things that dreams are made of—
of government
but, they are less fantastic by far,
and private
and
much more plausible, than
every
business, must
would
of
fifty
necessity
lack
is
lineation
as
so
any
for the future
program
concerned,
de¬
clear
far
extensive
and
must
be
sur¬
rounded and hedged with reserva¬
tions to provide
which
for contingencies
of us can possibly con¬
trying to meet the major
contingencies,
the 1 government's
program, of necessity, takes on the
appearance
of
wasted
thought,
trol.
none
In
motion and money.
Many view this situation with a
of hopeless foreboding. And
sense
there
are
who
some
of
and
others
insist
at the
best
carp
trying
as
for
place
critics
and
we
our
fiscal
McCormick
sidelines
for
do not say that we must not be
alert to attack and destroy wrong
Conse¬
quently,
T.
profession
I
in the coming
E.
a
believe that out of this
I
and
ourselves
years.
upon
have
standard
present
the
been
of
ago
years
of
living
record
of
prediction
our
present
evil, but let
us
be doubly
know that we are not
bling the temple of good.
sure
crum¬
a
prophetic
mind
and
*An address
Fourth
School
Annual
of
heart
that
in
the
Management
Business
and
functions
major national security programs,
both
domestic
penditures
duced
other
for
9%
1950,
foreign.
and
have
programs
in
since
Ex¬
government
been re¬
fact
the
fiscal
year
though
Adminis¬
tration, Cornell University, Ithaca, N. Y.,
April 18, 1952.
timistic.
From
tremulous
birth,
sponsibility of
are
announcement
not
could
have
defense
expenditures.
billions of dollars is
the
on
Sixty-five
tremendous
a
but in my opinion, it will be
sum,
well
money
though it
spent.
Paradoxical
sound, every dollar
is a dollar spent
may
for
been
and
previous generation.
than
At times, I
had
I
to
to
defense, and dis¬
allocated
allocate too
and
weak
a
but
on an
international level.
And
we
seeing to
and
it
An Extraordinary Budget
that
It
freedoms
is
truly
posterity but for that of
kind.
.
our
man-
'X.uhNMMHHI
budget, but it
was
drafted for
ex¬
traordinary times—drafted under
conditions
part
peace
is
not an
offer to sell
or a
solicitation of
an
offer to buy these securities,
offering is made only by the Prospectus,
too
small
much,
a
sum
and
the
drastically
the
over
past
few
and has caused
such
a
reduction
in
personnel
in
years,
thereof, that admin¬
consequence
istration
and
enforcement
' securities
the
of
statutes
has
they need to withstand
attack, armed insurrection
and
subversion, and to help them
combat and
overcome
the prevail¬
Due April
,
a
so
fertile
soil for the propagation of com¬
munism.
spent.
that
This, too, is
cannot
we
on
our
gle—allies
forever
little
allies in
need
the
who
well
strong,
economically
stand
with
We
present strug¬
not merely
but physically
sound, able to
in
us
survive
"island."
are
militarily
and
money
We all must know by now
alone
the
universal
part
In addition to the $65 billion for
military services, international se¬
curity,
atomic
energy,
defense
production and other defense ex¬
penditures, the budget includes
"major fixed and continuing
charges" of more than $10 billion,
past
Of
this,
approxi¬
mately $6 billion will be spent for
interest on the national debt, and
$4 billion for war veterans' serv¬
wars.
and
benefits.
These
ob¬
are
of
sharp-pencilling V
can
from the balance sheet.
the
fixed
tive.
15,1972
and
continuing
charges, the proposed expendi¬
tures
for
other
governmental
relatively conserva¬
fact, as has been pre¬
are
In
viously noted,
such
expenditures
9% since the fiscal year 1950, not¬
withstanding the increased costs
of
goods and services to the
This
ernment.
strong
I
indication
believe
the
of
gov¬
is
a
fiscal
conditions under which we would
undersigned and such other dealers
as
in which this
may
needs
of
ernmental
operation.
announcement is
circulated
lawfully offer these securities in
only from the
such state.
be
operating were it not for the
present disturbed state of inter¬
national
fact, it
affairs.
is}
my
As
own
a
matter
of
personal reac¬
tion that the purse strings, if any¬
HALSEY, STUART & CO. INC.
at
normal
gov¬
In times of
expenditures
estimated
are
high a level that
spending is required. As
so
deficit-
all
you
have probably noted, expenditures
for the fiscal year 1953 will ex¬
ceed estimated
receipts by about
$14.5 billion—a deficit which may
may not ultimately occur de¬
pending upon the exactitude of
or
what
necessarily must be rough
For example, the esti¬
budget deficit for the cur¬
estimates.
mated
rent year is generally expected to
be no more than $5 billion instead
of the
$8.2 billion predicted in the
budget message of the President.
At
mention
mere
a
of
budget
deficits
many
economists and
businessmen throw up their hands
in
horror
and
demand
to
know
why the government cannot
would
and
Price 100% and accrued interest
any state
minimum
ignorance which provide
have been reduced approximately
be obtained in
extremely diffi¬
satisfy even the
as
functions
;
Of course, it is
cult sometimes to
ing disease, hunger, poverty and
Apart from the expenditures for
major national security programs
Mortgage Sinking Fund Bonds, Series B, 4Vi%
Dated April 15, 1952
public.
provide those nations with
arms
ligations with which our economy
is already saddled, and which no
Peabody Coal Company
Securities and Exchange Commis¬
sion, for example, has been cut so
it goes. We all
this
the
be
ideal
gigantic
would be
pay
agree that
to
way
business,
that
run
It
and
of the best possible
one
prophylactics that could be found
against inflationary pressures. But
in the
light of the present world
situation, and barring a decided
improvement, I believe there is
very little hope of our achieving
the blessed state of pay as
you go
in the immediate future.
fight for freedom.
extraordinary
an
II—to
remove
April 23. 1952
to a practical
nullity. The appro¬
priation for the operation of the
guns
more
amount
may
by
priations, of reducing the effi¬
ciency of this and other agencies
lated
little
a
cover
$15,000,000
Prospectus
danger,
been
ices
The
real
continual unplanned or
generalized reductions in appro¬
the government have been
our
of
economic
and
preserved, not merely for
own
The
First
independent of¬
a
of
reason
various
even
largely attributable to the cost of
This
other
to
fices, there is
the cost of
goods and services purchased by
conceived of by economists in any
the
Conference,
Public
the fiscal year 1953 is reserved for
achievement, accom¬ doubt they are fully appreciated and discover too late that the sum
plished through two terrible by many economists in our own provided was
inadequate.
World Wars and unprecedented generation.
Of the approximately 65 billions
periods of economic boom and
To run such a business success¬ of
dollars
to
be
expended for
bust.
/
fully—and on the whole, it has major national security programs,
To my mind it would be practi¬ been run successfully — requires
$10.5 billion, about 12% of the
cally impossible for anyone, how¬ more than ordinary ability, more total
budget, are reserved for our
ever
skeptical he might be, to than ordinary thought, more than mutual
security program—to lend
examine our record of positive ordinary effort, and, at times, more a
helping hand to other nations
achievement over the past fifty than ordinary courage, to make
less fortunate than ourselves who
momentous
years, and be anything but re¬ the
policy decisions may have been roughed up a bit
assured and even glowingly op¬ required not only on a national, more than we
during World War
fundamental rights
at
More than three-quarters of the
Federal budget expenditures for
productive
power on
by Mr. McCormick
To accomplish this
policy has been and is to be with
respect
stress such as these
are, the most
This country is now engaged in for
peace, for we can be secure essential
functions, such as de¬
running the biggest business the only so
long as we are too power¬ fense operations, must be given
world has ever seen, branching ful to be
attacked.
If there be
by far the larger part of the purse,
out not merely through our own
errors in this figure let us hope
and other so-called non-essential
forty-eight states, our territories that the errors shall
prove to be or peacetime operations must be
and possessions, but into all cor¬
those of spending too much rather cut to the
bone.
This is particu¬
ners
of the earth.
The variety,
than saving too much for security.
larly true when defense and re¬
complexity and cost of its present I should much prefer to allocate
my
own
per¬
a
both wise and essential.
spent
have, in a of these decisions, that as to fu¬
ture fiscal policy, complicated and
the part of our leaders in govern¬ relatively brief period of time as
the lives of nations are counted, weighty though it may be, is only
ment—an assurance of infallibility
in these indecisive and unsettled grown to giant size in the family a part of the massive burden.
of nations, and have assumed our
tir es.
As a fellow who started
Our budget for the fiscal year
1:': economic life as a newsboy, at rightful position as leader of the 1953 is estimated at $85.4 billion—
free countries of the world.
In
the age of eight, more or less as a
a seemingly astronomical figure—
times fraught with danger when
matter
of necessity, I believe I
one
which has been seized upon
men
throughout the world are
have acquired a reasonably prac¬
as a standard of comparison with
given the soul-searching choice
tical approach to life's problems.
cost of
government in previous
between the conflicting ideologies
I do not expect any such assur¬
years and centuries, in an attempt
of fear
and freedom,
we
have to
ances.
prove that the government is
And, more importantly, taken
upon ourselves—or, rather,
spendthrift and bent upon dissi¬
when it comes to the American I should
say by force and
cir¬
pating our assets in improvident
way of doing things, I am an in¬ cumstances have had thrust upon
ventures.
us—the grave but welcome
re¬
curable optimist—convinced in
and expect
achieving
seriously affected, with re¬
criticism, but only if the criticism increase.
sultant inconvenience and costly
constructive—only if it is made
Large though they may be, and delays to essential financing and
in good faith—in a sincere effort
growing though they are, we can¬ diminution in the protection which
be well to improve and not destroy the not
gainsay the wisdom of these should properly be afforded to the
game.
This world needs builders.
expended
be expended is
money
peace and a better and fuller
and
and
is
view
path
lies
general and
fiscal policy will be effective and
any
block
clear
patience, personally,
they might to play a highly com¬
petitive game to the best of their
ability.
True enough, there is a
Too
answer.
imponderables
many
the
efforts
holding
country's
no
not
criticism, who delight to stand
on
capital gains.
main
have
positive,
with those who make
ill
on
the aim of preventing
war
end, a great part of the budget is
tightly.
This is the hour for
allocated—and such expenditures,
continued expansion—for progress,
far from being improvident, are
not retrogression — for optimism,
tive.
requirement
total
manent peace.
too
Though expressing optimism regarding future and defending
"extraordinary" Federal Budget and current high taxes, Mr.
McCormick, however, attacks double taxation of corporate
stocks.
war—with
Contraction
a
President, New York Curb Exchange
as
for
This, then, is not the time for
By EDWARD T. McCQRMICK*
dividends
Time
Thursday, April 24, 1952
...
thing may be drawn a little too
tightly upon these other govern¬
mental
operations.
If
my
own
long experience with the Securi¬
ties and Exchange Commission is
any
criterion of what the budget
No Reduction of Taxes in Sight
Similarly, I
of
see very
reduction
in
the
little hope
high taxes
which the government must needs
collect to meet these
expenditures.
We
extraordinary
must
to spend for defense.
knows how
do
be
unprepared.
us
shall have to
we
We cannot
so.
to
long
continue
None of
possibly afford
These huge
defense expenditures both for
our¬
selves and for
others, and the high
taxes which they entail in a pe¬
riod that is technically known
peace,
are
are
economic
facts
as
which
novel in the extreme to Amer¬
icans, but they
which
are facts of life to
must
become adjusted.
mind, it is pure day¬
dreaming for anyone wishfully to
In
we
my
think of substantial reductions In
the prevailing tax load.
If we
want
flict
to
in
volved,
costs.
win
the
which
ideological
we
are
con¬
in¬
now
shall have to meet the
Regardless of the Admin¬
we
istration that
may hold forth in
Washington, taxes will have to be
kept at a high level for a long
time, and
we
might
as
well
used to that fact.
get
.
;
So
long as the taxes are neces¬
sary,
equitably and reasonably
imposed, and collected without
fear
or
for the
us
for
can
favor, without loopholes
benefit of
have any
complaint.
a few, none of
justifiable' clause
No
one
can
seri¬
ously dispute that high taxes are
essential at present and will be
for the foreseeable
future, not only
Continued
on
page
52
Number 5110
Volume 175
.
.
The Commercial and Financial Chronicle
.
Some Observations
The Social
written by one large company. and as
amended in important re¬
Today, insured employee retire¬ spects in 1939 and more
recently
ment
plans constitute a major in 1950. This legislation has three
field of activity for many private
major divisions:
insurance companies.
(1) The Old-Age and Survivors
The expansion of Group cov¬ Insurance
Program
(frequently
erage, in all of its many forms, given the alphabetical touch as
through private insurance in re¬ OASI).
on
Security Program
By LEROY A. LINCOLN*
Chairman of the Board, Metropolitan Life Insurance Co.
cent
Head of largest life insurance company warns that many activ~
of the Federal Government in field of Social Security
be getting out of line, and the whole
may
Just
about
no
generation ago
a
In
great novel captured the imagina¬
tion
the
of
America
it
civilized
into
ran
world.
80
In
more
or
reprintings
in
than
less
It
year.
"The
a
was
Four
Horsemen
the
of
Apoca¬
lypse."
At
just
that
about
time
one
A
rlca's
m e
rail-
foremost
d
r o a
t i
v e
of
execu-
F.
L.
s,
Life
insurance
Fiske,
doing
of Amer¬
great
with
away
of the fear and deep concern
some
the
about
Horsemen"
"Four
another
of
ravages
dis¬
death,
—
ties? What
be
that
Fiske,
the average man was
this
mind.
sat in on
because I
day,
me
of them.
some
Mr.
insurance
the
could
the
that
activi¬
any,
should
Mr.
assure
Life
insurance
in position
ex¬
Loree
industry
to furnish mone¬
traditionally
characteristic
people.
primary
United
Life
that
American
have
have
this
Today
persons
in the
States
the
are
insurance
in
insurance
sickness
accident—and
> or
the third
provision to withstand
—old-age dependency.
there
But
facility
was
reached by the benefits of private
insurance, including the in¬
sured
their
and
beneficiaries,
is
high indeed.
very
The
in
—
the
is
years
perhaps
impressive.
even
Consider
anywhere else in
soften the
to
No.
of
attack
or
economy—
our
Horseman
4—unemployment. Some kind
of insurance for this
developed
the
in
hazard, to be
insurance
Life
business, was conceived and urged
upon the New York Legislature,
but
suitable
no
legislation
was
adopted.
more
the
only
came
to be agreed
and for a
of old-age protec¬
amount
just since the enactment
of the Social
Security Act in 1935.
At the end of that year,
less than
was
The
force.
the total
held
the
of
toward
private
the
fillment of this insurance
these
Even
give
vast
of
do
not
index
insurance
our
of
the
concept
soon
called
companies
horsemen
through
is
that
increase
is
taking
the
number
684
Life insurance
reported
of
place
Here
the
ber
we
freedom
action
develop
can
the
trial
various
necessity
pig,
tion,
so
devised,
to
as
its
before
embrace
some
adop¬
of the
Nation
as
the
in
as
ference between
in
field
the
or
of
in
is
as
have
we
know it in the United
born
in
this
to
come
States,
legislation.
was
did
In my remarks today I will at¬
tempt to discuss the philosophy of
that
midcentury Social
legislation
which
we
Security
actually
have, its virtues and its faults. We
may
with
a
classic
quotation
Grover Cleveland:
tion
which
discussion
this
commence
"It is
confronts
us
a
from
condi¬
—
not
a
now
lusty
not
exist
operations
of
Accident
sued
If
we
and
include
plans,
covered for
expense
million
Second:
new
American
Regional
10,
Bar
by Mr. Lincoln before the
Association's
Meeting,
Ohio
Louisville,
1952.
Ky.,
Valley
April
there
true
for
some
We
of
come
Federal
lation,
as
now
Social
first
an
Some
to
seems
to
States,
have
proportion
for
found
In other words,
evidence
of
the
can
Federal
of
that
the
me¬
and not
be—and frequently
program,
influential
factor
in
to
the
in
enacted
gram,
number of
1935
appropriate recognition
of the
special needs, circumstances, and
objectives of the several States.
We must be on our guard against
repeated efforts to interfere with
this sound principle and to extend
the role of the Federal Govern¬
ment, as proposed in the Moody
bill which received attention in
Congress last month.
The
are
programs
just
described
most ambitious and constitute
quite
undertaking.
an
Even
so,
they are only a part of the fan¬
tastic and incongruous array of
Gov¬
activity which the Federal
sponsoring
in—this,
broad field of Social Security.^
is
ernment
Third: Other Federal Government
Operations
to
Assistance pro¬
much smaller
persons are affected.
Income
although
Old-Age
subject
Security legis¬
permitting
arrangement
sirable
some
needy blind—This
is similar in its operation to the
Aid
in
the conditions of eligibility,
Alongside
the
Social
the
programs
Security
Act
under
of
1935
a
Continued
on
page
in
Missouri Pacific Railroad
1935
of
Equipment Trust, Series SS
out¬
3% Serial
both
To
is¬
insured
$180,000 annually May 1, 1953 to 1967, inclusive
To be guaranteed unconditionally as to payment oj par value and dividends by endorsement by the
Trustee of the property of Missouri Pacific Railroad Company, as Trustee but not individually.
voluntary pre¬
the
number
Priced
to
yield 2.15%
to
3.15%, according to maturity
form of hospital
protection
is
over
80
Issuance and sale of
The
for
dealing
problems—is
since
mature
have
insur¬
Health
(Philadelphia Plan)
pres¬
persons
Equipment Trust Certificates
one
of
the
first
such
are subject to authorization by the Interstate Commerce Commission.
be obtained in any state in which this announcement is circulatedfrom only
the Certificates
Offering Circular
may
of the undersigned and other dealers as may lawfully
offer these securities in such state.
with
HALSEY, STUART & CO. Inc.
the
insured
R. W. PRESSPRICH & CO.
FREEMAN & COMPANY
WM. E. POLLOCK 4 CO., INC.
J.
-
'
•
•
'
April 23, 1952
retirement plan
ees
of
an
48
$2,700,000
people.
methods
elapsed
is
need,
(2)
Security Programs
im¬
theory." Whatever the philosophy most convincing proofs that our
and the actuality of - Social Se¬ people are' quite capable of cul¬
curity should, perhaps, have been, tivating, in their own ways, a very
broad area in this general field.
it is with us now in the
shape of
Relatively, not so many years have
*An address
the
chanics
Current Federal Social
This vitality in the development
of the new forms of insurance—
age-old
varying
level
of benefits, and other provisions.
This is widely regarded as a de¬
experimentation
for
localities.
this
commercially
and other types of
payment
that
although wide latitude
made available to the States
was
and
in
at that. At
ones
40 million
form
some
seem
matching is high.
is—an
pitalization, surgical, and medical
expense insurance were, for the
most part, only infants—and not
over
State plans,
widely in small amounts on
which
public.
just barely getting under
are
ance.
-
encouraged.
very
dif¬
designed
The
maintains some
control jbver these
of
measure
the
likewise
Many activities
which
very
Security,
of a
operation.
case
private operation
facility
the
employers. Through the Fed¬
tax mechanism, the Federal
Government
it
advantageous to extend payments
governmental operation,
whether in Life insurance or in
other
on
eral
payments made
plus 50% of
One of the very
procedures,
example,
and
serving
are provided as a
right, pursuant to vari¬
in almost
all States entirely by payroll taxes
Benefits
num¬
Accident
insurance
were
ent,
Social
be
single
a
only 373.
was
remaining
horsemen.
State
administered by the several
State laws supported
questionable aspects of this pro¬
gram is the manipulation, under
in
without
experimentation
of
$30.
system of
ous
monthly
average
next
The growth which has occurred
hazards inherent in attacks by the
two
the
new
error
directions,
whole
guinea
and
the
of
the
of
Its principal effect has been
States.
under the State plan
methods of opera¬
new
through
the
on
plans and
new
standing magnitude. In 1935 hos¬
was
(under
State supervision) of one or
dozen or a hundred companies
by the third broad
Social Security
covered
grams
or
of
—
attempted
are
matter of
payment is
$30, being arrived at roughly on
the basis of 75% of the first $20
proper
a
share
Fourth
companies are
into
adopted
in 1935. That legislation, however,
individual's
operated institu¬
find evidence that
of
Federal
the
unemployment compensation pro¬
the
add under this program.
maximum
massive, nation-wide,
to
establishment of a
the
State pays within a certain limit
and what the Federal Government
already exist and that
resiliency not possible will
be
Act.
insurance
what
needs
income
unemployment
—
onslaughts
division
Federal
between
a
of
companies. Today
operating
as
in
way
legislation
relationship
a
any
to
now
come
whose
statutory formula which fixes a
a
hazards
the
We
Horseman
State
little
form
expenses.
portion of
these payments is determined by
that
needed,
receive
the
payments and for certain medical
administered
Old-Age
The
basis in
test
for
available
permanently disabled on
a
b|isis to aid those
who
Federal
benefits.
demonstration,
a
cover
governmentally
are
"Social Security" and this, in turn,
Federal
$120
to
funds
needs test
a
no
the
institutions of long standing. What
is not so well known is the great
field
into
to
they have
any
sums
growth that is taking place. Many
eral
thinking,
ful¬
cur¬
are
billion.
$70
adequate
an
pressive.
This
is
demonstration
facilities
the
of
Security programs.)
This record
if
discussion
of
course
$100 billion ($98.4); Federal
Government
over $253 billion in Here one finds an essential
assets
companies
Health
ripened
the
current Social
(a)
for
providing aid for the totally and
month for in¬
a
programs
individuals
these
would be government itself, Fed¬
State.
ranging
funds
workers,
$80
provides
assistance
on
tion
tion the most satisfactory medium
or
This
in
on
Public
includes
persons — This
adopted in 1950, makes
for State
plans
program,
(1) Old-age income assistance—
Fourth
little later
a
also
States
disabled
benefits
income
dependents
con¬
Horseman—unemployment—will
ideas and
United States. In 1935 their
Gradually it
(The
the
to
(4) Aid for totally and perma¬
nently
from $30
a couple.
make his bow
occurred
that for unemployment
basic
companies.
ance
program
payments
(2) Income benefits for certain
of qualified deceased
outside
in
plans — all in estab¬
privately managed insur¬
acquired Life insurance that has
rently nearly
insurance
Life
qualified
month for
retirement
tion.
vigor of growth of private¬
ly acquired Life insurance through
established
no
entirely
activities
Old-Age
dividuals;
sum¬
companies.
The
presented by the first three of our
proportion of the total population
today there is
—
available
are
brief
in
This part of the Federal
might divide them
we
from $20 to
indicates the channels which
mary,
of
owners
policies purchased
privately managed
the part of the first two
from
foregoing,
outstanding lished,
families
they
million
them
by
of
responsibility.
86
over
the
of
Heads
recognized
an
amount of Life insurance in force
of those
death and disability
(1)
dent and Health insurance.
The
respect to the basic Old-Age and
Survivors Insurance program.
three groups:
underwriting of Acci¬ for
field—the
tion that the Old-Age Income As¬
sistance
program
fulfills
with
Assistance
Security
de¬
to
respect
maternal and child health
simplicity
into
have seen many
companies entering a new
such
Employment
with
services,
Under the Old-Age and Surviv-. (b) services for crippled children,
and
ors program, an extensive variety
(c)
general
child
welfare
of
benefits
are
provided.
For services.
been
we
governmental
tary reassurance against the tragic
results of a successful attack on
horsemen
activity, but
tremendous expansion of privately
Fiske,
ecutive,
was
his
vivid to
are
changes, if
have
Services Program.
preliminary to such discus¬
stantly widening scope and con¬ workers. These may range up to
sion, it will be helpful to review
stantly greater facility, as well $150 a month for a family.
the
current situation—what
has
as
safety, for that large segment
(3) Lump-sum benefits payable
been and what is being done by
of our population which can and upon the death of qualified
private effort and what activities does
make
its
own
provision workers, ranging up to $240.
are
now
being carried on under
Let us next look at the Public
against the inroads of Horseman
the aegis of government.
No. 1 by way of Life insurance, Assistance program.
Under this
against Horseman No. 2 by in¬ program funds are made available
First: Private Channels
surance
against
disability, and for the following types of State
The
search
for
security
for
against Horseman No. 3 by insured programs:
horse¬
in
up
Those discussions
to
four
these
conjured
men
continuously
the
financial
of
which
these
we
performing,
pendent children, the same func¬
As
Life
apprehensive
toward
urged?
discussion
hazards
independent but
programs
attitude
our
Life
Mr.
there
arising out of
other legislation. What should be
dependency, and
Mr.
Loree
had
concluded, and was advancing for
ability, old-age
unemployment.
with
addition,
number of
a
related
with
—
been
executives, Haley
toward
are
In
1935
themselves and their families has
cooperation of
ica's
amendments.
of
the
enlisting
one
legislation
months
witnessing not only an extension
the operations of many Life
insurance
companies
into
the
Group insurance field as a new
was
Loree,
L»T9f A. Lincoln
the
recent
(3) Aid to dependent children—
This program may be regarded as
The Public Assistance and
(3) The
Program.
of
panacea.
a
(2)
Children's
needs, and changing rela¬
tionships in business and industry.
thoroughgoing study and appraisal. Estimates present social
security benefits at $7 billion a year. Warns social security
is
as
wider
needs
program
has been amazing, re¬
it does, new concepts,
years
flecting,
ities
13
(1705)
■
covering employ¬
employer was under¬
<■
^
14
The Commercial and Financial Chronicle
(1706)
the military to award contracts to
"job distress" areas.
It isn't a far
The Outlook for Business
this to finding, other
why defense spending
should
has de¬
re-election, he is now more optimistic on business out¬
Says feeling is widespread that President's successor
Babson, stating that because President Truman
Mr.
clined
look.
will be
stepped
tion
is
little
the
on
strikes
readers know, I have thus thing that will make a man go out
been pretty blue
about the and spend a little more money
prospects for business up to elec¬
tion time next November.
But, as
:
I told you in
they may do
buying themselves.
more
wife that "there'll
year."
Today, however, he
may feel that things aren't so bad
after
all,
and
say:
"There
is
be
out
the
of
running,
pick
cester, Massa¬
chusetts,
my
will be
behind
whom
father
cratic
often
He
ran
said
to
people
—no,
in
have
them
makes
the
a
me:
money
that
bank
buy my merchandise
sir, it's HOW THEY FEEL!"
That
good
was
and it
advice
in
1900,
is still good.
Just take
pened in the last
remember
You will
year.
the
that
bureaucrats
and the brain-trusters in
ton
a
Washing¬
warning the nation that
were
of inflation
wave
new
ahead—that there
big
soon
just
was
would
be
shortages
again.
That was
only twelve short months ago. Did
these shortages show up?
They
did
not.
Why?
Because
the
'
people who do the buying decided
to save more and buy less.
The
government
measure
couldn't
statisticians
inventories,
could
but
they
figure out people's feel¬
ings!
;
have
Southern
be
a
that
team
will
Democrats
conservative
be
to The
has
with
R.
S.
both
been
the
Stevenson.
don't
look
What
Democrats
busi¬
to
the
Republicans?
any
Taft.
or
It
be
hopes
foolish
Trading
thereto
on
pin its
"dark horse" that
down
the
in
big
race.
good
right
if
now
they
knew for certain that a conserva¬
tive is
Co.,
&
members
to
be
in
the
the
White
Thus,
January.
Democrats
publicans,
it
and
looks to
House
&
of
the
me
Halsey,
Missouri
3%
like
a
Stuart
&
Co. Inc.
Series
RR.
equipment
trust
swing to the right!
a
all
cessors
widespread feeling that
of his possible suc¬
would be
more
kindly dis¬
busy mapping the strategy for
feeling of keeping
things humming right up
relief has spread through the
to polling time.
posed
business.
to
country from
one
A
end to the other.
Now, this feeling
thing
and
a
you
white.
graph.
can
is not
measure
in
You can't put
But,
it is
the
some¬
black
They
of
have
lost their
to
prices
May
to
3.15%
1,
sense
Already
ernment
we
have
granting
seen
the
exaggerated fears about the health of our econ¬
is just simply sheer folly."—President Harry
It is not
gov¬
to
the
rear
end of
a
train at the
likely to convince the informed student
budget by merely eliminating waste—or that
and
can
we
afford not to take such action.
SS
certi¬
from
to
2.15%
to
maturity.
Is¬
Philadelphia Plan,
offering is subject to approval
to
Diesel
cost
Road
six
SECURITY TRADERS ASSOCIATION OF NEW YORK
The
Switching
Diesel-Electric
Road
Planetarium
Also
associated
tended by
Cars.
in
the
16th Annual
R. W.
man
&
Dinner of the
of New York, held April 18, at
Passenger Locomotives, and
three
Notes
NSTA
$3,387,056.07: Eight
Electric
Locomotives,
are
permission
of harangue is unfortunately often all
effective from
offering
those
attending
Securities
and
Pressprich & Co.; Free¬
Co.
and
Pollock
&
Security Traders Association
the Waldorf Astoria Hotel, was at¬
about 1,400 members and guests.
Among
Chairman
of direction.
and the rest of the
inclusive at
1967,
yield
according
mated
leader, but they haven't
lost their
it into
kind
may
us
ficates to mature annually May 1,
the
win again.
You can bet that their
"smoke-filled rooms" are already
disaster would cost
that billions could not be removed from the national
More Spending Right Away!
making decisions and
by
the
Interstate
Commerce
Commission.
buying until after the elections.
Finally, the Democrats know
Now, however, with the President that if
The certificates are secured by
business is good and the
making his historic "shall not voters are
following
new
standardhappy next Nov. 4, the
run" decision, all that is
changed. they will have a better chance to guage railroad equipment esti¬
nearly
we
"whistle stops."
from
There is
a
This type
sued under the
holding
Anything
comes.
S. Truman.
offering $2,700,000
are
Pacific
serial
up
Re¬
if it
—
prior
Company and
with Straus & Blosser.
was
associates
1953
sizing
war
omy,
Halsey, Stuart Group
Offers Equip. Tr. Gtfs. I
enough to
some
fall
pretty
Livingstone
Building,
too
doesn't
Businessmen generally would feel
The truth is that
"This great country of ours—stronger and more
productive than ever—does not face a danger of
internal collapse. To reduce our defenses because
M.
associated
of
Exchange. Mr.
was
formerly
in
the
Department
of
C.
G.
McDonald
likely that the Convention
seem
Stanley
Detroit Stock
Weaver
it is pretty hard to
candidate outside of
—
become
me,
Eisenhower
may
or
few weeks back.
a
about
Well, to
will
the
formidable
so
they did
ness as
see
So
Kerr
Truman
world.
Chronicle)
Financial
Mich.
DETROIT,
Weaver
the
Russell,
such
Stanloy M. Weaver
(Special
Penobscot
South—like
President
that we
protect ourselves.
say
spend to prevent it is trifling compared with what
conservative.
appeased and
very
that the Convention nominate
sary
both
In my opinion, business and the
public
of
to
se¬
*
to
the next world
Demo¬
Now, the
If they are to be
"kept in line," it is highly neces¬
next
Everybody Feeling Better
back
bulk
happen
The
can't afford to spare any effort to prevent an¬
other world war. Nobody can calculate the cost of
enough to attract full support from
look at what's hap¬
a
big
whole
the
Party can unite.
fake
a
we
effort
candidate
a
—
the bone be¬
*
can't afford to
Truman
every
made to
*
foolish
"It's
not be over¬
President
budget down.
were cut to
\
Swing to Right
With
wave
they were put into the
budget. It's an honest budget,
and don't let anybody tell you
anything else. If they cut much
more, we'll be opening up some
big holes in our defense and in¬
viting new attacks by the forces
of aggression.
There is another important pos¬
that should
an economy
fore
pared down.
looked.
that
sent
curity
the bank
in
sibility
"'Roger, it isn't how much
I
day; so, with election
looking brighter, why
i-el a^e
store.
a
for a rainy
prospects
not now
enjoy the new car?" This should
cause currently high inventories to
enough
Roger W. Rabson
be no new car
this
my
1952
Congress. Well, I had my
own
economy wave before the budget was ever
sent to the Congress. And I
gave the heads of these
departments of national defense
quite a pain in the neck before
which recent
way,
indicate,
Thursday, April 24,
.
economy wave—on in the
Cer¬
Stanley Weaver Joins
S. R. Livingstone
told his
month ago he may have
the
know, there is
amounts needed for national
Just
than he would have before.
a
in
immediately ahead.
As my
far
up
"You
tainly, if the people get an im¬
pression that a new wave of infla¬
kindly disposed toward business.
more
be
months
.
Quite Unconvincing
from
step
reasons
By ROGER W. BABSON
.
the
dinner
were:
Donald
C.
Cook,
Exchange Commission; Richard B. Mc-
Entire, Paul R. Rowen, Clarence Adams, Robert I. Millonzi, Com¬
Co.,
missioners, Securities and Exchange Commission;
Inc.
Chairman
of the Board
J. Coyle and Frank
of the
New
York
Curb
John J. Mann,
Exchange; Frank
Klem, Vice-Presidents, New York Stock Ex¬
change; H. Russell Hastings, President, National Security Traders
Association, Inc.
Pictures taken at the dinner appear on pages
SECURITY TRADERS
The
Annual
New York
ASSOCIATION
NEW
YORK
Bowling match with Philadelphia
victorious
was
OF
25 through 40.
was
held and
follows:
as
Total Pins
New
York—9,135
Philadelphia—8,386
Prizes
Price: 32c per
Share
Average:
Low Score:
York
224—Richard Goodman.
High Single Game:
High Two Game Series:
Best Over
New
408—Arthur Burian.
59—Wilbur Krisam.
ill—Sam Gold.
Prizes Philadelphia
Copies of the Prospectus
as
are
may
High Game:
be obtained from such of the undersigned
High Three Game Series:
registered dealers in securities in this State.
Best Over
5, N. Y.
514—Jack Murphy.
Average: 16—Wallingford.
Low Prize:
James M. Toolan & Company
NEW YORK
214—Lon Jacoby.
70—Ed Knob.
Philadelphia comment, "Wait Till Next Year."
*
BALTIMORE SECURITY TRADERS ASSOCIATION
Hunter Securities Corporation
NEW YORK
4, N. Y.
—
JERSEY
CITY
2, N.
J,
Brereton, Rice & Co., Inc
DENVER 2,
7®*
The Baltimore Security Traders Association will hold its 17th
Annual Summer Outing on May 16,
COLORADO
Maryland.
,
man
1952 at the Country Club of
Howard L. Kellermann, Alex. Brown & Sons, is Chair-
of the Entertainment Committee.
Volume 175
Number 5110
..
The Commercial and Financial Chronicle
.
Continued jrom page
Favorable Factors in Business Outlook
as
lution of this
Problems
arma¬
Confronting
and liquidation of retail inventories. Urges
abandonment of price controls.
program,
Speaking before a group of the
Retailers Syndicate
Independent
throughout the
reflected in
a
it will be
economy,
larger Federal bud¬
City on April 16, Dr. getary deficit and in increasing
Backman, a Professor of pressures for higher prices. The
Economics
New
U
at
York
final
magnitude
of the
sets
are
considered by the super
pressures
generated will be significantly in¬
"thecorrec-
already
experienced
establish¬
are
ing
a stronger
foundation for
business
the present re¬
cession
its
Production
course.
ex¬
when
pansion
Jules Backman
runs
sales
and
of hard
goods and soft goods have
been
declining
since the first
quarter of 1951. While major em¬
phasis has been given to raw ma¬
terial
controls
decline
the
the
as
in
the
for
reason
production
of
hard
goods,
demand for these
products also has declined sharp¬
ly. In the absence of raw material
questionable
would have
significantly different from
amount
actually
produced.
limitations,
whether
been
the
The
of
production
decline
hard
was
is
it
in
buying
consumer
in the past year
compensation for the over¬
a
buying
goods
the
in
first
months
nine
alter the Korean War started."
Continuing, Dr. Backman said:
am more optimistic than most
persons about the probability of a
"I
rise
durable
goods
sales in the months ahead.
These
moderate
in
higher incomes and lower rates
in
too, would contribute to
gfeater volume of durable goods
sales."
./
Favorable
factors
the
in
out¬
in
rise
moderate
a
the fore-
.
New York Stock
change who act
the
as
Ex¬
specialists
addition
who
fronts
Rheinstein,
President
in
William
rtVA
are
Mee-
M.
..
.
States
is
more
r«K avto
rf AO
a-P
paa/-]
Av»
a-P
shortages of food or of
determined in the open
demsnd
emd
supply
during
Most
haVe been met.
is very heavy and the
the
Taxation
war
reduced
" p°wer ofdecline in thehas of those
constant the dollar purchasing
purchasing ability
the
whose income has remained more
Rigginson Corp.
or
less-constant.
The
outlook
who
for
how
know
to
handle
loans in periods of keen
competition during a buyers' market,
Many of the loan officers of today
were
promoted during the last
dozen years when the economy of
the country was in the middle of
a
sellers'
market, when profits
were
satisfactory
and
failures
were
relatively small. The main
reason
why banks today, partic¬
ularly those located in smaller and
J1
ap¬
of the pent-up de¬
mands that had been accumulated
.
W L, Tresiho _ m With
MA
no
parel.
Vice-President; Leonard
Wagner, Secretary, and Kenneth
R. Williams, Treasurer.
Lee
United
the
productive capacity of the country
has increased considerably. There
1950, other officers of the Asso¬
include
and
,
deflationary than inflationary. The
Mr.
to
elected
was
;
Basically the problem that con¬
on
trading floor.
In
con¬
markdowns will
be
/
wholesale
months
lying
in
prices
•
1
i
*111
1
medium-sized towns, are not
p
able
capable young men and
to attract
WOmen
_
pressures
still
are
more
months
than
down¬
in the eight
50%
following the outbreak of
Korean War have declined
the
This
to
point where they are now only
11% above the pre-Korean level."
Professor
Backman
pointed out
the
"In
Wall
Rollins
Street,
that
nounce
and
&
Co.
New York
Edwin
Richard
Inc.,
I believe that this rela¬
that
prevail
declines
moderate
prices
will
again
take
in
place
and
retail
in
the
The cuts in cloth¬
months ahead.
ing prices already announced are
in
line
with
these
"the
be
moderate
changes
ply
retail
round of
ization
has
become
firm
as
securities
steel
City,
position of the individual
Obviously where the earn¬
ings of a bank are large enough,
to
warrant
any
increase in interest
savings deposits
would necessitate a deterioration
ever,
rates
where
paid
an
on
in the quality of bank assets.
Aside
which
bank
from
the
confront
the
decision
considerations
individual
the
should
Continued
on
matter
of record only and is neither
an
offer to sell
nor a
of these securities. The offering is made only by the Prospectus.
Stylon Corporation
Common Stock
Price $1.00 per
associated
Manager
of
with
that
Copies of the Prospectus may he obtained from such of the undersigned
as are registered dealers
in securities in this State.
foreign
its
Share
Erlich
M.
department.
of the New York Stock
announced
decision
As this increase
in
the
spreads
that
in
has
firm
its
Street.
that
a
Newark
Incorporated
NEW YORK, N. Y.
Exchange,
Kathryn
become associated
as
Gcarhart, Kinnard & Otis
Co., members
customers'
White & Company
with
broker
ST. LOUIS, MO.
office, 18, Clinton
'•
.
rates
Such would not be the case, how¬
that
275,000 Shares
an¬
in
increase
an
this could be done with impunity.
have
With Orvis Bros.
have
case.
the
bank.
compared with
as
Exchange,
Alfred
Orvis Brothers &
Keer
Board's
that
announced
prices,
and retail
sured in
ings deposits is not easy to answer
and will to a large extent depend
on
Hayden, Stone & Co., 25 Broad
profits. However, a new
wage increases seems as¬
light of the Wage Stabil¬
sales,
*
April 23,1952
Street, New York City, members
as
This will ap¬
retail
this problem carefully. Th©
question whether a bank shouM
increase the interest paid on sav¬
ing
expectations."
compared with 1951.
to
commercial banks have not as yet
made any decision and are study-
(A Massachusetts Corporation)
of the New York Stock
emphasized that
major characteristic of 1952
would
buy
Foreign Mgr.
For Hayden, Stone
Prof. Backman
•
to
Erlich
past, sharp declines
prices have pre¬
will
of offers
Bueltman
A.
Portmore
E.
dents of the firm.
ceded and portended lower prices
tionship
increased the rate of
44
been elected Assistant Vice-Presi¬
in these sensitive
at retail.
have
interest on savings deposits. Many
is the relatively low com¬
pensation
advertisement appears as a
solicitation
the
that
banks
NEW ISSUE
Blair,
that the under¬
indicates
is.
There
Buellman, Porlmore
sensi¬
recent
ward. These sensitive prices which
rose
Blair, Rollins Elects
profits.
"The persistent decline in
tive
large
market by
a
favorable factor in the outlook for
retail
or even
do since these rates are
to whether there will however, no reason why the overbe continued stability or whether the-counter rate should not be
the forces of inflation or- deflation commensurate with the cost of
will
prevail' the
trend toward doing business by a bank. If tbe
mergers among banks and busi- banks were to adopt such a policynesses will continue,
it would mean a widening in tbe
business therefore creates prob¬
incomes, the abnormally
Lee Higginson Corp. announces
prevailing in other industries. The
high rate of savings, the expand¬ that William L. Trenholm has lems for the economy of the coun¬ principal reason for this is that
ing armament program, and the become associated with them as try as a whole and particular the low money rate policy which
large scale liquidation of retail in¬ Manager of the institutional bond problems for the commercial prevailed up to the beginning of
ventories since last spring.
Dr. department in their New York banks.
Upon the solution of these 1951 has held earnings of the banks
Backman told the IRS. "Retail in¬
office, 40 Wall Street. Mr. Tren¬
problems by the banks will to a down at a time when their expen-.
ventories have been reduced about holm was formerly with F. S.
the ditures increased rapidly. The so12%. This will mean less necessity Moseley & Co. and before that considerable extent depend
for sharp markdowns in order to with The First Boston Corp.
obtain a liquid position. The re¬
in
x
as
sumer
duction
^
,
,
bers of the
look, according to Prof. Backman,
include
United States in
seeable future is not
han,
ment,
to those of de-
serious depression
however,
can
,
,
that instalment credit controls will
This develop¬
a
bank
First Annual Dinner
ciation
be further relaxed.
way
While
small, medium-siz^d
instances the survi-
some
many small and mediumsized
businesses.
Irrespective,
Specialists Ass'n
savings than have prevailed
recently. There is a probability
of
the
give
in
of
likely, yet it
is quite evident that unless someThe trend toward mergers will spread b e t w e e n the over-thething unforeseen occurs the econo- be further accentuated by the counter, rate and rates determined!
my of the country will shift over personnel problem that confronts in the open market.
system of price control which is from a sellers' to a buyers' market.
many commercial banks. This ap¬
The attraction of capable young
much too ambitions for the current This in turn means not only keener
plies to regular employees in gen¬ men and women to the banking
armament
program.
Wage
and competition and lower profits but eral
and to management in partic¬
profession is perhaps a greater
price controls should be scrapped. also that some of the current as¬
ular. During the past few years
problem than is generally realized.
At most, a loose system of selec¬ sets
which are highly liquid in a banks in
general, particularly the Banking is one of the most com¬
tive price control with very lib¬ sellers' market become less
liquid smaller country banks, have not
plicated businesses and a bank of¬
eral standards might be useful for in a
buyers' market. Moreover the attracted the same type of young
ficer in a responsible position*
a few items in very short supply."
transition from a sellers' to a men
as a generation ago. Moremust know not only his own busi¬
buyers' market has an important over a "lost generation" developed
ness but also that of his customers
effect on the composition of the
during the periods of the depres¬ and must at the same time famil¬
net current assets. Cash and its sion and the
war, with the result iarize himself with broad trends
equivalent tend to decrease, while that there are many banks in the in business and in the movement
inventories and accounts receiv¬
couritry which have no second of commodity prices. Since it is
able tend to increase. But in a
layer of executives to succeed the fairiy certain that the sellers' mar¬
Sidney Rheinstein, President of buyers' market these current as¬
present top management. Where ket sooner or later will give way,
the Association of Specialists, an¬ sets lose part of their
liquidity. this is the case the death of one to the
buyers' market since com¬
nounced
that
the First
Annual The effects of the transition from
key officer has often led to the petition in the future is bound to
Dinner of that organization will a sellers' to a
buyers' market on absorption of an old institution by be
very keen, it is of the utmost
be held
at^the Hotel Biltmore,. the. working capital position of a another which is better staffed. importance that the problem of
New York City, today, April 24. business concern can be
appraised The problem before the banks
personnel, and particularly of de¬
Richard M. Crooks, Chairman
by a careful analysis of what hap¬ therefore is to endeavor not only veloping
management
by
the
of the Board of Governors of the
pened to industries which wit¬ to attract capable and well-edbanks, be given the attention that
New York Stock Exchange, and nessed such a
change during 1951. ucated young men and women to it deserves.
Edward C. Gray, Executive Vice- The careful
banker, realizing that the banking profession but also to
President, will be guests of honor a change in all industries from a
provide them with adequate train¬
Payment of Interest on Savings
at the dinner.
^
sellers' to a buyers' market is
Deposits
ing facilities in order to create a
Organized in 1948 to promote likely to take place sometime in new
generation of capable bankers.
As a result of the increase Ii*
better understanding of the func¬ the
future, will study the record
There are relatively few bankers money rates which has occurred
tions of the specialist system, the
carefully and try to avoid losses
today who were in an executive during the past year, mutual sav¬
Association of Specialists has a not
only to itself but also to its
position prior to the depression ings banks and many commercial
membership of 337. All are mem¬ customers.
purchases would be financed out
of
Entirely different problems will
arise
if
the forces of inflation
should
.
tions
Problem^ Arising From Deflation
flation.
a
open market rates are
as rates on gov¬
obligations, bankers' ac¬
ceptances
or
even
commercial
paper,
there is
little that the
as
ernment
Mi>
val
ment program.
by the size of our aTma-^
That it will mean
squeeze on corporate profits in
vilian
e c o nmany
industries
seems
certain
omy has been within the framework of present
.in recession government policies.
;
the past year,
"We should abandon our present
ci-
the
cause
So far
concerned, such
longer-range outlook for business
and
visory authorities as risk assets.
fluenced
iversity,
n
stated that be-
and
Commercial Banks
in New York
Jules
problem lies in tbe
charging a higher price for
commodity which they sell
for the service they render.
banks'
favorable factors, rise in consumer
incomes, abnormally high rate of savings, expanding
ment
3
the
Dr. Jules Backman cites
35
(1707)
Sheehan, McCoy & Willard
BOSTON, MASS.
rest
to
page
16
The Commercial and Financial Chronicle
(1708)
16
From
Washington
Ahead
of the News
istration
BARGERON
By CARLISLE
In the
himself, had become disillusioned about Stalin and was pursuing
a
tighter policy months before he left office.
But the
"appeasement of Stalin" continued to grow as'a
political issue, coupled with the charge that the Administration
was coddling Commies in
the Government. The result was that
the Administration decided to turn against Stalin with a ven¬
geance. They began pouring billions into Europe and they went
to war in Korea. The question, of course, is just whom the Admin¬
great debate between President
Truman and his former
Jimmy Byrnes, over whether the President
read Brynes a lecture, the missing but highly material witness
is Admiral W. E. Leahy. I don't know whether he could testify
State,
of
Secretary
this particular
on
the
during the
war
Carlisle
But Leahy argued
would be able to finish her
he pursued his argument
against
kowtowing to Stalin after VJ-Day and he was the one to build
the heat under Jimmy. A good year before Byrnes left the State
portfolio, stories circulated around Washington that he was on the
these
and
out
way
stories
coming
were
from
the
Admiral's
entourage.
I
can't say
whether Truman actually gave Brynes the lecture
he wrote and subsequently turned over to his biographer, but
there is no doubt he had come to have a strong feeling against
his State Secretary.
A little
afternoon
ticker
previous history is interesting. My recollection of the
of
Roosevelt's
around
5:30
death
that
is
Anyway,
p.m.
the
within
flash
five
came
the
over
minutes,
came
a
flash that Byrnes was rushing to Washington from South Carolina.
The ticker read about like this:
ities
is secular in char¬
year
strange
that
now
strange
Byrnes'
returning
importance in the flow of
from
the
and
it strikes '*me
Washington
to
momentous
news.
Government.
There
stantly
the^time
at
rated
as
such
Byrnes had retired
"
doubt
no
in
<•
mind that it occurred to him in¬
my
hearing of Roosevelt's death to get back to Washing¬
over the State Department. The
thought that
something had to be done quickly about the State Department
raced through the minds of
many another Democratic leader that
ton
upon
take
and
afternoon.
same
Stettinius
Republican and he
the
was
Secretary of State; he was a
Presidency.
next in line of succession to the
was
Truman
and Byrnes were good friends at the time and he
undoubtedly welcomed Byrnes' presence but the fact is that the
latter just moved in on him and
just took it for granted that,
of course, the new President would
need him as Secretary of
State. And in those
days of confusion it
talk over
foreign
to
never
occurred to Byrnes
policy with Truman. It isn't that he delib¬
erately
ignored
Truman
bothered.
occur
to
the
would
And
President.
have
until
It
anything
the
just didn't occur to him that
to offer or would want to be
needlers
in
got
their work
it
didn't
Truman, either, that he should be consulted.
compromise, to work things out. He was never the contentious
trait in a very long and useful career.
sort. This was his
great
And
great
He
at
war
the
time
have
been
a
with
him.
Who
But
he
was
as
we
Admiral
we were
our
to
were
turn
fellow
to work and
the
over
Democrat,
save
will
prevail.
apple-cart
of
fiscal
the
fense
and
position
expenditures.
capital expenditures by
tions
in the
also
are
of
huge de¬
The
large
the
corpora¬
initial
stage
contributing factors to the infla¬
tionary forces. Short of a world¬
wide war, sooner or later military
expenditures are bound to decline.
Capital. expenditures cannot be
maintained
at
levels for
present
indefinite
an
two
to
period. Once these
of expenditure begin
types
decline
and
more
of
more
our
production will become available
for
civilian
consumption; all in¬
in the country will wit¬
dustries
ness
a
transition from
a
sellers' to
a
buyers' market; competition will
keen;
bound
of
Republicans; it
be
ward
major political issue.- Byrnes,
of tluise shares having been
publicly sold, this
advertisement appears as a mutter
of record only.
and
UTAH
CORPORATION)
able
.
analysis
lows
that
period
will
National
New
Association
135 BROADWAY
'
York
of
Curb
If
the
correct
it
fol¬
later
the
or
to
an
high
money
end and the trend
of interest rates will be downward
not
upward. If this analysis
is correct it raises the question as
to
the
advisability of commercial
banks'
rates
savings
on
which
tained for
*The
raising their interest
now
could
to
be
not
main¬
Trend
of
on
Interest
Rates
and
Investment Policies
Exchange
NEW YORK 6, N.
adopted
by the Reserve
ities early in March 1951 and the
ensuing decline in prices of gov¬
ernment
obligations
and
other
high-grade bonds came as a great
surprise to
of
and had
many
effect
on
some
the
a
pro¬
investment
institutions.
analyzing
the
In¬
causes
of
many
bankers
became
ex¬
tremely pessimistic about the out¬
look for money rates and prices of
even
has
a
4%
In
fact
opinion that
return
obligations
on
was
an
some
3%
a
govern¬
bound
important bearing
investment policies and
Y.
of
ers
of
securities
remained
pegged.
fully realized that in
high
very
taxes
in
crease
own¬
so
prices of government
as
in
balances
reserve
government
curities
It
se¬
was
period of
a
moderate
a
in¬
rates could not
materially influence the forces of
inflation
The
one
another.
way or
and
cure
Moreover
a
well-managed institution will in¬
variably
maintain
a
sufficient
of
amount
take
tion
highly liquid assets to
of its
care
liquidity require¬
and hence such
will
it
in
a
forced
is
to
sell
position
longobligations, particularly gov¬
term
ernments, at
should
the
be
loss. The portfolio
a
based
bank
the
on
individual
needs
institution.
quite evident that
a
institu¬
an
be
never
located
of
is
portfolio of
a
in
It
important
an
market center and having
small percentage of sav¬
money
only
a
ings
deposits
will
from that in
different
be
country bank op¬
a
erating largely with savings de¬
posits.'-
policy prevails today
will continue so long as there
inflationary
are
in
money
time is the best
same
the
forces
forces
operating
Once
economy.
tionary
have
the
infla¬
given
Conclusions
(1) The principal problems con¬
fronting the nation are to main¬
tain the
however, and the sellers' market
to
in all industries is converted to
business
integrity of the dollar and
sharp fluctuations in
activity. It is, however,
buyers' market the policy of the
certain
that
Reserve
transition from the sellers'
authorities
will
way,
a
undergo
prevent
sooner
later
or
a
to the
a
change.
In the meantime the
following facts should be borne in
buyers'
mind:
(1)
Under conditions as
they exist at present, particularly
lems which the commercial banks
in view of the
transition
production
the
and
rapid expansion of
for
defense
purposes
position of the Treasury,
orthodox
credit
restrictive
meas¬
they were adopted in some
European countries will not be
place
adopted in the United States. This
is due partly to the fact that
ditions
in
the
United
con¬
States
are
market
and
should
but
is
this
also
bound
will
consider
of
business
the
take
prob¬
Such
now.
only has
on
to
create
not
profits
on
an
a
effect
concerns
composition and
liquidity of current assets.
ures as
expansion
plant
and
to
of the banks.
fully
dox
credit
would have
the
found
record
that the
to
of
sustain
Further, ortho¬
restriction
would
greatly interfere with the refund¬
ing operations of the Treasury
and
might make it extremely dif¬
ficult for the latter to obtain
funds
outside
of
the
market
money
they
not
existed
new
commercial
banks. By the same token
to
return
a
conditions
prior
to
as
Korea
(2) Because of the high cost of
business, high taxes
and
the
ac¬
celeration of the payment of taxes
the need for working capital will
continue
tional
investors.
of
sources
kept
given
Careful
the
to
increase
capital
re¬
have
not
banks
with the growth of risk
nor
assets.
The
the
with the volume of de¬
pace
posits
thought
problem
the
capital
must
of
be
how to
of
resources
the banks either through retained
earnings
through
or
additional
shares
the
in
sale
the
of
/open
market.
is
likely. Even after the transi¬
(3)
The
problem
of
attracting
market it is doubtful whether the
capable young men to the banking
profession and developing a new
generation
tion
to
from
caret
sellers'
a
authorities
return
to
government
The
to
a
buyers'
would
agree
policy of pegging
a
securities
flexible
at
open
fixed
a
market
policy is here to stay. In the fu¬
policy will be guided by
ture this
business
conditions
movement of
If the
and
by
above
conclusion
is
clue to the
a
cor¬
banks
ment
shorten
the
maturity of bonds.
Rising loans result in an increase
in the volume of deposits and
the
of
means
created
for
payment.
the
of
purpose
in
Loans
fur¬
thering the defense effort, which
does not lead to
supply
the
of
tionary
other
in
tends
a
Under
,
stream,
character.
entering
are infla¬
If,
on
the
hand, the volume of loans
to
decline
slackening
or:
increase in the
an
commodities
consumer
but
it
demand
also
liquidation
these
bankers
for
top
is
perhaps
greater than is generally realized.
If this problem is not met it will
accelerate
(4)
the
movement
merger
banks.
among
Money rates are the result
developments and the
movement
how
to
of
management
of economic
to shape their invest¬
policies. In a period when
loans are rising it is advisable to
as
level
the
commodity prices.
it offers
rect
the money
activities
Had the latter
studied
rates
on
equipment
the defense effort.
level.
policy
author¬
prevail in the not distant future.
Securities Dealers, Inc.
creation
initiative
op
Reserve
a
long period of time.
a
Its Effects
deposits
The movement of interest
Telephone REctor 2-7235
goods.
is
sooner
come
dur¬
sale of
of relatively
ment
Underwriter
.
once
the
consumers'
above
expressed the
CHAS. WEINSTEIN & CO.
Members:
take
credit in order to stimulate home
construction and
or
through the undersigned.
regain
The
government bonds.
STOCK
to
was
sooner
at the
aims,
The fin (Dicing of this issue has
been arranged
,
will
the change an the open market
policy of the Reserve authorities
and attempting to ascertain the
Leasing Company
aim
se¬
great. This will be felt
principal measures
entirely different from those pre¬
particularly
by those
concerns
disposal of the Administra¬
vailing in the rest of the world which have no access to the
capi¬
tion to prevent a too rapid decline
and that restrictive credit
policies tal market or can sell their se¬
in business activity will be, as was
would interfere with the defense
curities directly to large institu¬
the case
in
1949, the easing of effort and with the
decline.
stead
v
500,000 Shares
COMMON
seri¬
fore¬
1949
military
capital expenditures begin to
policies of
All
(A
in
what
less
or
down¬
a
becoming
place in the future
nounced
Great Basin Oil and
prevent
spiral from
more
conditions
these
to
The flexible open market
"appeasing" Stalin began to be heard
a
under
how
Developments
cast
enjoying?
grew into
develop
thorities
will
unemployment is
and the prime
some
to
such
Leahy
time, criticism
from the
the
long
from
Treasury
our
the world.
was always cynical and he kept up a
steady argument to Truman that we had to
quit giving concessions
to Stalin. For a
long time his was the sole remonstrating voice.
In
an
increase in money rates but rather
to reduce the availability of Re¬
rily
the
level
responsibilities. Certainly it would
for Jimmy to go over and
get hard-boiled
shock
brotherly love
still
was
time ally. Together
share our global
to
was
Stalin
bring about
which rested in the hands of
and
As to Byrnes' record as
Secretary of State I have no criticism.
He went out of his
way to get along with Stalin. His whole nature
is to
to
the
matter what
no
case
the
forces
stated
was
ous.
is
then
case
bonds,
that
highest quality.
portfolio ills.
where
consideration of the monetary au¬
as
of the
is the
all
debt; the increase in money rates
was only incidental. The
principal
i.e.,
be
me
in handling its port¬
should make sure
foremost
are
the
ments
i.e.,
Flash—Roosevelt is dead. Flash—Truman has been summoned
White House. Flash—Byrnes is rushing to Washington.
the
struck
not
was
bond
price they may be selling at to¬
are bound to return to par.
in money
trend
money
higher
In this
cipal aim of the Reserve author¬
It
to
lower
hence
day,
the ques¬
previously the in¬
flationary forces emanate prima¬
war with Germany over,, we
land 5 million troops in Japan.
Having been proved right,
If this
later
Bank credit and to prevent
monetization
of
the
public
As
Bargeron
sisting that, the
that the Navy had Japan choked and
off in short order.
the
business
bank
and
deflationary
Roosevelt, including General Marshall
General MacArthur from far off, was in¬
would have to
forecasts
a
first
Confronting
on
of
prices.
serve
cal,
around
and
level
commodity prices. This
and
temporary in character.
The answer to this' question will
depend on whether inflationary or
him even
At Yalta he counselled against
war.
turn
rates
us.
will continue for an
indefinite period of time, or cycli¬
deal with Stalin to bring him into the
against Japan. Nearly everybody else
any
lower
a
and lower
folio
has prevailed during
which
past
acter,
had any illusions about
Stalin and he didn't want to appease
whether
rates
only record that is clean on the
never
means
in
15
page
considerable extent
tion
subject.
The Admiral
from
Problems
a
kaboodle of them—from
Roosevelt the Great down through MacArthur
the
earnings and partly be¬
slackening in loans caused
by a decline in business activity
or
the liquidation of inventories
for
of the whole kit and
is
maintain
cause a
Commercial Banks
Stalin. On that the Admiral knows
—his
or
Thursday, April 24, 1952
.
curities
episode but aside from Jim¬
the post-war appeasement of
plenty and
for
Jimmy
against—Stalin
vengeance
.
Above all
Continued
my's vanity it is unimportant.
The deeper significance of the controversy
is that Truman is trying to place the blame
on
its
worked
has
.
indicates
not
only
a
for
for commodities
of
inventories.
circumstances
it* is
they advisable for the bank to lengthen
prin¬ its maturities partly in order to
of
commodity prices.
periods of increasing business
activity,
rising prices of com¬
In
modities
and
rising
inventories,
the volume of bank loans is bound
to increase. In such
a
period it is
advisable to shorten the maturity
of the bond portfolio. Once the
volume of loans begins to decline
this
in
itself
reflects
down in business
liquidation
of inventories, thus
lower
money
rates,
forecasting
and
a
slowing
activity and the
hence
maturities
can
be
lengthened. Under any circum¬
stances, however, banks should al¬
ways
maintain an adequate
amount
of
term assets
placed in
are
highly
so
a
that
liquid shortthey are never
position where they
forced to sell long-term obli¬
gations. If these obligations
high quality
sooner
will return to par.
or
are
of
later they
Number 5110
Volume 175
.
.
.
17
(1709)
The Commercial and Financial Chronicle
I
SEVEN GREAT DIVISIONS
WELDED INTO ONE
INTEGRATED STEELMAKING STRUCTURE
WEIRTON
STEEL
COMPANY
Weirton, W. Va. World's largest independent manufacturer of tin plate. Pro¬
ducer of many other important steel
products.
'
GREAT LAKES
STEEL
CORP.
Detroit, Mich. A major supplier of stand¬
ard and special carbon steel products foi
a wide application in industry.
STRAN-STEEL DIVISION
Ecorse, Mich,
and Terre
Exclusive manufacturer of
Haute, Ind
world-famed
Quonset building and Stran-Steel nailable framing.
NATIONAL
STEEL
PRODUCTS CO.
Houston, Texas. Warehouse and distribu
tion facilities' for steel products in th<
Southwest-
\
HANNA IRON ORE COMPANY
A
major
tin
It's
a
world's
are
r—
cans
practical certainty that
board that
source
made of tin
you
for the four billion
America
have
cans
in
your cup¬
plate from National Steel, the
largest independent producer of tin mill products.
National Steel has achieved
a
tremendous tin plate produc¬
uses
through its Weirton Steel Company division,
which operates
the steel
of the
which
the largest and fastest electrolytic lines in
industry. This National Steel division did much
year
modern
electro-plating facilities
much
50% in
as
scarce
its
expansion
effect savings of
plate is only
National Steel has contributed
that has taken
to
to
one
field in which
the continuous
improve¬
place in steel technology. This
program
as
and precious tin.
And the manufacture of tin
ment
tion volume
each
Cleveland, Ohio. Produces ore from exten
sive holdings in the Great Lakes region
will result in
a
capacity—more steel for America's defense,
more
THE HANNA FURNACE CORP.
year
6,000,000 ingot-ton
steel for
Blast furnace division located in
Buffalo
New York.
America's civilian needs.
pioneer work in developing the electrolytic process
has
the
production of tin plate.
a new
method of utilizing these
revolutionized
Recently, it originated
This is National Steel
,..
...
in the front of steel progress
of America's steel production leaders.
CORPORATION
NATIONAL STEEL
GRANT BUILDING
fastest growing
™gg*t
PITTSBURGH, PA.
NATIONAL MINES CORP.
Supplier of high grade metallurgical CO
SERVING
AMERICA
BY
SERVING
AMERICAN
INDUSTRY
fr»r
Nlntinn-il
tretnendfrnR
.
n£
18
(1710)
The Commercial and Financial Chronicle
to adjust wages and social service benefits to the
higher cost of
living. The inflationary spiral would receive an additional stim¬
ulus, leading to an ail-round increase of prices.
Britain's Distoiled Economy
!
Even
By PAUL EINZIG
the disadvantages of such
so,
an
adjustment would
.
Dr.
Einzig maintains Britain's present distorted
Bache in Cleveland
be
For in the existing state of
unduly low level of rents results in two grave dis¬
advantages. It is responsible for the perpetual shortage of housing
accommodation as a result of which it is
practically impossible to
move workers from districts where
they are redundant to districts
where there is an acute shortage of labor.
And pressure in favor
is
economy
result of mistaken
v
planning and ill-advised use of controls
Cites control of rents, when other prices
resulting in housing shortgage. Advocates de¬
several years.
over
have risen, as
of
control of rents.
Thursday, April 24, 1952
Max Hollander Joins
heavily outweighed by its advantages.
affairs
:
.
the
meeting excessive demand for housing accommodation, stimu¬
by the unduly low level of rents, results in the diversion of
lated
LONDON,
provides
a
Eng.—The
striking
United
example
become distorted as a result of
of controls
use
over
period of
a
Even those of
years.
as
us
that in many respects Britain has
vided
an
which
illustrate
to
should
controls
the
be
never
used.
in
Bad
to
planning has distorted the country's economic
the
and
foremost
produced
of
of the
perpetuation
the
among
results
such
distortions.
policies
prewar
responsible
Britain's
for
the
and
adverse
delay
in
her
1939,
Einzig
several times
afford
an
ren|s
of
rearmament
and
flats
below
figure',must remain unchanged.
cost
of
a
Since
their properties
and repair is now
landlords are unable to
in good condition.
all-round deterioration of prewar
houses which
There is
are
war.
percentage of their budgets than in 1939, and they
they can afford the luxury of occupying more spacious
family occupied a threechildren,.having grown up, went to live
are
trial workers
and their families pay very low
rents, entirely out
proportion with other items of their budget which have risen
very considerably.
■.
■
This
of
houses,
new
•
that the young generation has to be
provided with
in addition to the existing working-class houses which
means
are now
occupied by much fewer people. While it is
undoubtedly
good thing to reduce the extent of
overcrowding that existed
before the war in
working-class districts, the extent to which this
has been done as a result
of the unduly low level of rents has
gone beyond what Britain could afford at the
present time.
As
Mr. Aneurin
Bevan, when Minister of Health, admitted in a speech
On the face of it the
policy of controlling rents at artificially
low levels, and thus keeping down the cost of
living of the working
a
classes at the expense of the house owners and the
taxpayers, has
its advantages.
Were rents allowed to rise it would be inevitable
in
1950, there must be
needs
limited
New York Curb Exchange
reasonable this argument
may appear to the disinterested
it is difficult to
expect its
Trading Symbol, also listed
$
on
the
Calgary, Vancouver,
who
Exchange.
have
over
Toronto Stock Exchanges and
the Montreal Curb
a list of
priorities in the satisfaction of the
working classes, and the provision of houses must be
by the need for satisfying also other needs.
However
of
a
been
period
observer,
the millions of people
acceptance by
on
of
the
waiting list for housing accommodation
It
years.
program of the Labor
the
was
Government,
discontent
with the housing
anything else, that
more than
has resulted in the Conservative
victory at the general election of
1951.
And, even though the Conservative Government realizes
the need for
cutting down capital investment, for political reasons
it has to make an effort to
maintain and even increase the
program at the cost of
A consolidation of—
British Empire Oil Developments Ltd.
East-Leduc Oil Company, Ltd.
perhaps even
the shortage of housing accommodation has resulted in
a
high degree of rigidity in the employment of
manpower.
Although
there is now fairly extensive
unemployment in the textile indus¬
tries, it is impracticable to shift the redundant
Globe Oil Co., Ltd.
worse,
Leduc-West Oil Company, Ltd.
Moose
Jaw Refineries, Ltd.
Taylor Petroleum Operators, Ltd.
—and
they
needed
are
in
available there for them.
while the production of
acquisitions being effected:
Redwater Leaseholds
(
workers to districts
where
Roxboro Oils, Ltd.
the
As
aircraft
a
industry.
No
houses
are
result, their manpower is wasted,
urgently needed jet fighters is held up for
lack of manpower.
To some extent the problem is
sought to be
solved through the extension
of rearmament industries in districts
where there is local
unemployment.
This is an absurd solution,
and in most cases it is not
practicable.
has
Ohio
E.
Max
—
become
associated
& Co., National City
Building. In the past
he was with Ira Haupt & Co. and
was Cleveland
Manager for E. H.
Rollins & Sons, Incorporated.
Morgan Stanley Group
Offers Gustin-Bacon
Mfg. Go. Com. Stock
The
first
curities
public offering of
of
Gustin-Bacon
se¬
Manu¬
facturing Co., a leading manufac¬
turer of glass fiber products, was
made
on
April 18 by Morgan
Stanley & Co. and associates. The
offering covers 261,900 shares of
stock priced at $21.50 per
common
share.
Of this total 209,540 shares
being immediately offered to
public by the underwriters.
are
the
The
balance
of
such
shares
are
subject to subscription at $21.50
per share by holders of the com¬
pany's
stock.
common
Gustin
Bacon
Manufacturing
Co., organized in 1903, is engaged
in
the
-
manufacture
and
fabrica¬
tion of glass fiber insulation
prod¬
ucts.
in
It
pioneered and is
the
and
sale
leader
a
development, fabrication
of lightweight fine di¬
mensional
roll
-
-
Bache
glass fiber insulation
in flexible, continuous
These products, mar¬
products
as
•
Sixth
such
the construction of hydro-electric
power stations and the modern¬
t
1
V v ' ;■
The
artificially stimulated demand for housing accommodation
necessitates the import of much
additional building materials.
It
also diverts labor and materials from the
production of goods for
export, and from rearmament production.
What is
ization of factories.
...
with
East
housing
postponing productive investments
Hollander
CLEVELAND,
Hollander
rents, the additional comfort derived from retaining the
would probably be many times more than five
shillings. As it is,
most people of the lower-income
groups can well afford the luxury
of additional accommodation.
E.
(Special to The Financial Chronicie) 1
full accommodation after the
departure of the children is secured
at a very low cost.
If rents were not controlled the difference
character of slums.
The rents of
of course higher, but those built by the local
authorities are kept down by means of subsidies granted by the
government.
Generally speaking, it is true, therefore, that indus¬
houses
Max
much more spacious accommodation than
Rents of working-class homes now
represent a
occupy
smaller
level of
gradually
privately built
assuming the
new
On the other hand, owing to
rents, members of the lower income
controlled
rooms and four rooms was
considered well worth saving.
In the
postwar world it is not considered worthwhile to move for the
sake of saving five
shillings a week. Owing to the artificially low
maintenance
war,
addi¬
elsewhere, the parents usually sublet two
bedrooms, or they moved
into a smaller house or flat.
This is no longer done.
In prewar
days the difference of, say, five shillings between the rent of two
everything has risen since
houses
of
higher than before the
maintain
to
the
certain
the
the
of
bedroomed house and the
While the price of
of
'i,/'
houses and flats.
The effect of this factor
heavily outweighs the
division of big houses for the use of a
larger number of families.
Before the war, if a
working-class
effort.
Dr. Paul
level
now
feel
now
level.
balance
construction
^
large number of people.
very
much
The situation rent control has created is largely
payments
a
before
has
is the control of rents
working-class houses at their
the
postwar
groups
First
which
to
':■■■.
other sphere has the equalitarian
tendency that charac¬
Britain proceeded so far as in the sphere of
no
the low
system and has created vested interest in favor
of
materials
converted into
pro¬
way
and
manpower
housing.
High taxation has forced practically all owners of
"stately homes" to sell or let their houses, which have become
schools, hotels, country clubs or other institutions.
Big town houses have been divided into a number of flats or are
run as
private hotels.
This change has provided accommodation
private enterprise must
admit
instance
In
terizes
who are
of checking the
means
a
of unfettered
much
tional houses.
country
a
in favor of controls
excesses
too
Kingdom
in the early 'fifties
whose economy has
mistaken planning and ill-advised
of
form..
keted
under
the
Ultralite
and
for
or
heat
railroad
trade-names
Ultrafine,
sound
of
used
are
insulation
on
trucks,
trailers,
automobiles, aircraft, and ships,
and in the building and other in¬
cars,
dustries.
The
duces
plastic
a
also
company,
bonded
pro¬
organic
fiber mat used for heat and sound
insulation
principally for the
industry. Its principal
manufacturing plants are in Kan¬
sas City.
The company also, has an
automotive
established
line of
railroad and
industrial mechanical products.
.
By combining the
assets
of these companies,
effective
more
participation in the development of oil and natural
resources
in Western Canada is
We have
you
just issued
our first
being realized.
V
gas
ments.
.
Annual Report and believe that
and
.
This would of
social
service
sake of putting
economy.
fore it is not
-SIGNIFICANT FACTS (as of December
31, 1951)Number of Wholly Owned Crude Oil Wells
17
Number of
Partially Owned Crude Oil Wells
Barrels of Oil produced
during
25
Earnings
per
Net Acreage
A
has
44
2,241,343
(as of 4/2 52)
•
done.
been
Wall
their
538,693
Mr.
nance
ber
formed
&
with
Co., Inc;,
offices
of
issues.
Officers
Nettune, Chairman of
a
Rothschild
has
since 1927.
A former
the
Produce
member
York Stock
at
of
been
in
fi¬
mem¬
gether with
request
our
without
latest Progress Report, will he
cost or
obligation. Send
your
sent
on
request to:
627
EMPIRE
OILS, LTD.
Eighth Avenue West, Calgary, Alberta, Canada
York
Curb
Twenty
beef
Exchange
Club
held
the Downtown Athletic
Club, New
City,
utive
Exchange firm of Dur-
(Special
the
to
The
Mr.
Nettune
is
President
Keniland Oil & Gas Co., Inc.
has
had
extensive
Townsend,
~
He
Baruch
is.
Oil
also
Corp.,
President
and
a
&
Tyson,
Mr.
of
former
member of the Rubber Exchange.
McCormick,
members
Exchanges.
for
Philip
With Reynolds & Co.
(Special
to
The
of
who
25
:-
Financial -Chronicle)
CHAPEL HILL, N. C —Carl M.
Smith is With Reynolds & Co.
-
or
Chairman
the
man,
a
Curb,
re¬
meipbership
have
more
Diamond,
the Entertainment
assisted
attend¬
;
by
Leonard C.
V
in
is composed of Exchange
seats
30
a
and
Mann, and Ed¬
Club, <with
160,
E.
expe¬
rience in the financial district and
;
was a member of S. W. Baruch &
Co.
Dabney
T.
of
State Street, members of the
New
York and Boston Stock
of
those
John J.
President
The
of
Chronicle)
was
.former
spectively.
'
Financial
all
Among
were
ward
Jpins Townsend, Dabney
are
of
present members of the Curb Ex¬
and
'
Vice-President, and Samuel
Masiello," Secretary-Treasurer.
get-together
ance
New
a
and
cabbage dinner
Wednesday, April 23, 1952, at
on
change.
old
Board; Sailing P. Baruch, Presir
BOSTON,. Mass.
Ellen
dent; George F. Rothschild, Exec¬ Stowell has
joined the staff
Baruch
TRANS
corned
the
—
of the 1951 Annual Report, outlining the year's
activities and
including complete background material, to¬
New
and
Exchange, he
yea & Co.
Street,
own
Louis J.
copy
Five
York
'
New York City,
to deal in investments
and act as
underwriters and originators pf
TOp
4/2/52)
likely to be
Baruch, Rothschild
19.7^
Gross Acreage Holdings (as of
an
was
$378,284
Share
Dividends per Share.
benefits, but it
formed in New York
339,851
Net profit before Depreciation
all-round increase of
wages
would be worthwhile for the
an
The
Highlight of the evening
2
year
entail
Baruch, Rothschild Co.
'
Number of Wholly Owned Gas Wells
course
end to the present distorted state of the
national
Unfortunately, it would be political suicide, and there¬
will find it interesting and worthwhile reading.
Curb 5 & 20 Dinner
The right solution would be to decontrol
rents, or at any rate*
to raise their
controlled level and adjust it to
present-day require¬
held
Curb
years.
Chairman
Committee,
of
was
George J. Bernhardt,
Greene, Marcus
Kauf¬
Charles Leichner, Edward A.
O'Brien,
Francis
Milton
X.
change staff.
E.
Gaudino
'
Reiner
and
of
Ex¬
the
Volume 175
Number 5110
..
The Commercial and
.
Financial Chronicle
(1711)
orts
The
need
and the demand of the American
full
people
than ever. During
1951, new business written by the Society totalled
$1,200,000,000. To policyowners and beneficiaries, The
Equitable paid out $423,742,000 during the year.
for life insurance service
Life
insurance is
must
be
and
of
greater
amounted
Equitable, take special pride in the
investment
additional
to
Premium income
ones.
$727,003,016 and
operations amounted to
tions
made
we
for dividends and
have maintained
to
extraordinary additions to our
paid or set aside $100,300,000
added $23,600,000 to
surplus funds.
though, that
regret,
our present
estate
planning are not making as
should of the services that this
our
year, have issued their certificate
accounts and transactions are in
policyowners
State of New York.
protection and
much
Taking
they
use as
of Government because
a
closer look at taxes
our
reasons
that
we
in The
find that the Revenue
we
Act of 1951
great organization can
furnish.
transactions
our
cost
Equitable have
policies which shirk the
grave duty of controlling the supply of money in these
days, when it is principally inconvertible paper. Those
wh6 took us off the gold standard, whether they realized
it or not,
tremendously increased the need for compe¬
tent, courageous Federal Reserve policies with respect to
credit and the supply of money. At least the loosening
of. the
peg on market prices of Government Bonds dur¬
ing 1951 was a step in the right direction.
Accountants, ?who
continuous audit of
the
to our
It is for these
stating that
conformity vvith
generally accepted accounting principles and with regu¬
lations prescribed
by the Insurance Department of the
mana¬
We think there is no better adult education in the
than that which Equitable makes available to
them. We
a
to
been critical of the monetary
during the
country
and those who have need of insurance
year.
feel this increasing
policyowners during the current year.
else in the land, we are suffer¬
ing from the continued inflation of our money supply
-now in excess of $190 billions,
up more than $10 bil¬
lions during 1951-and the consequent depreciation
of the purchasing value of our insurance dollar.
- V
of $10,100,000,
reserves
Haskins & Sells, Certified Public
and their
distribution
to
of this total:
security.
our agents
we
Then too, like everyone
our
jpolicy reserves required by the nature of our
business—the margin remaining wTas $134,000,000. Out
public has been the development of a
large force of intelligent, trained and enthusiastic field
underwriters who are
prepared to serve the American'
people in attaining their goals of individual and family
training of
during the
earnings from
$167,459,000. After
net
paying all claims and expenses of operation—including
a
greatly increased Federal Income Tax and the addi¬
the American
the selection and
else in the land,
Federal Tax payment for 1951 was approximately one
fifth of the Ordinary dividends which we set aside for
on
devoted
Society's investment earnings during the
rate
contribution
Equitable continued to increase its
capacity to meet its existing obligations and to
year
are
in the 1951 tax took all of the increase in the
During 1951 The
take
Equitable, much time and effort
crease
of the
'
one
financial
field force of competent and enthusiastic agents
who perform this personal service.
At The
protection, should consult
field representatives and keep
Like everyone
agency managers
gers.
of insurance
8,000 Equitable
in touch with him.
Indeed, the greatest single contribution of life insurance
to
measure
our
very personal matter. Its services
the individual needs of the policy¬
to
We, in The
owner.
great
adjusted
a
are
imposed a new tax on the life insurance
companies which cost The Equitable $11,350,000, an
Policyowners and their beneficiaries, as well as
buying public who expect to realize the
the insurance
increase of
CONDENSED
$5,100,000
STATEMENT
over our tax
OF
for 1950. This in¬
PRESIDENT
CONDITION
RESOURCES
OBLIGATIONS
As of
As of
As of
As of
,
December 31,
BONDS
AND
STOCKS*
U. S. Government obligations
Dominion
Public
of
Canada
$
599,391,351
obligations
726,482,517
243,769,704
506,073,372
521,420,938
1,894,352,280
1,680,552,354
133,210,925
88,901,458
90,455,667
10,987,179
8,642,995
Other bonds
and
guaranteed
stocks
Common stocks
MORTGAGES
AND
REAL
To
299,419,790
795,849,372
Railroad obligations
Preferred
$
POLICYHOLDERS'
779,733,386
bonds
obligations
December 31,
1950
171,792,619
utility
Industrial
December 31
1951
Farm
and
business
with
esfate
977,249,680
mortgages
and
and
business
129,056,089
6,450,798
6,997,068
OTHER
properties
,' '
V '. *
:
Expenses
and
Total
accrued,
for
other
38,497,145
market
44,052,280
and
The
stocks
are
6,703,102
35,900,152
80,650,408
21,653,000
17,391,000
12,137,244
8,789,419
2,185,000
distribution
7,172,082
13,617,000
dur¬
year
unearned
$5,683,544,540
revaluation
foreign
SURPLUS
•Including $5,575,621
with
accordance
28,191,420
85,105,097
'
interest
and
of
Canadian
and
48,119,219
other
..../.
In
31,718,781
89,534,730
142,478,440
48,280,990
and
accrued
68,135,232
$6,094,900,772
rentals
of payment
other obligations
*.
49,635,340
Interest
130,044,178
.
LIABILITIES
151,194,411
of collection
process
323,281,234
147,093,366
deposit
on
Taxes—federal, state and other
96,895,150
equipment
policyholders
in
process
dividends for
as
Reserve
to
left
annuities
10,573,799
150,402,737
120,240,491
Loans
$4,648,335,206
Society at interest
ing the following
real
ASSETS
Premiums
$4,996,110,978
and
150,933,941
9,802,273
other
Cash
Transportation
force
Premiums paid in advance by policyholders
788,666,769
buildings
purchased for investment
Residential
OTHER
office
under insurance
in
policyholders
Dividends due and unpaid to policyholders
189,747,553
branch
developments
and
the
Policy claims in
ESTATE
mortgages
Home and
Housing
for
beneficiaries
Dividends
1950
336,836,732
deposit
on
December 31,
1951
payments
annuity contracts
Held
Allotted
Residential
future
cover
and
FUNDS
requirements of
law all
To
at
free
of exchange
contingencies
364,558,707
amortization
31,
as
as
$5,683,544,540
►
of December 31, 1951
stated
are
340,936,476
$6,094,900,772
Total
to
valued of the market quotations on December
accounts
FUNDS
oil
cover
deposit with public authorities
on
bonds subject
rates
currency
at
their amortized
value
all
other
bonds
prescribed by the National Association of Insurance Commissioners.
"
^
_
„
'
I
■
' '
..
1
?
'
'•
'
Thomas 1. Parkinson, President
'
.
'
■'
A'*'
'•
'
'
'
-•
BLEETSTEIN
MYRON
H.
COHEN
393 Seventh Avenue
101 West 31st Street
MONROE
JOSEPH
W.
BLEETSTEIN
855 6th Avenue
V.
DAVIS
225 West 34th Street
WILLIAM
J.
DUNSMORE
120
Broadway
LEO
EISEN
Nelson Tower
M.
W.
GOLDSTEIN
HORACE
H. WILSON
30 Broad Street
;
295 Madison
EUGENE
Bldg.
J.
120
HOMANS
Broadway
BROOKE
'
•
•'
'
^
EQUITABLE AGENCY MANAGERS AND GENERAL AGENTS
A.
completely detailed state¬
of the Society's opera¬
tions daring 1951 write for a
copy of your President's Re¬
port to the Board of Directors.
a
Equitable Life Assurance Society of The United States
Home Office: 393 Seventh Avenue, New York 1, New York
;.
For
ment
and
CO.
Avenue."
JOHNSTON
393 Seventh Avenue
'
IN
MAX
'
NEW YORK
REIBEISEN
v
SID
'
CITY
SMITH
1475 Broadway
393 Seventh Avk u£
E.
MAXWELL
W.
REJAUNIER
450 Seventh Avenue
\
M.
SH>
PFRAhj
225 West 34th 1 treet
19
20
The Commercial and Financial Chronicle
(1712)
4!.
f V I
ti.'*
bonds
on
By 1950 this return had increased to 1.77%
The yield on stocks at book value was
1.63%.
was
Treasury is a belief that little
is currently available. In
my view, whether money is avail¬
able depends, in part, on the rate
money
brought out in this report is that the
in stocks has changed very little dur¬
ing the past five years although market appreciation has added
over $10 million to the value of these holdings.
Other insurance companies have also issued excellent annual
An
interesting fact
amount of money invested
By H.
JOHNSON
E.
This Week—Insurance Stocks
of
hoped that the trends in evidence over the last several years will
continue so that all stockholders will have an informative annual
and
Fire
institutions
most
publishing
stockholder reports than in earlier periods.
This
now
are
I
from
4
page
development is both significant and beneficial. For a
period of time and to a certain extent there still
of
called
Improved Debt Management—
The Treasury's Opportunity
professional investors.
Part
of the
reason
nature of the insur¬
for this exists in the
and part arises from the accounting procedures
which the different companies, as a result of regulatory practices,
are required to follow.
Also, there is even difference of opinion
operation
ance
authorities as to the most satisfactory
method of reporting earnings.
However, the reports now being issued by some of the more
progressive insurance companies are not only contributing to a
better understanding of the operations and problems of a particu¬
lar company but are also aiding investors in evaluating different
companies in the industry. The magnitude of this change can be
realized if the annual reports issued as recent as five years ago
are reviewed.
Of course the changes are even greater the farther
the
among
recognized
back you go.
This year
sent
the number of companies which have tried to pre¬
informative review to stockholders seems considerably
an
greater than a year ago. Possibly this is because many of the
major companies are approaching or celebrating anniversaries of
the organization of the institution. Others have used their annual
report to discuss the difficulties which the insurance industry is
experiencing on particular lines of risks. Nevertheless, one is im¬
pressed by the improvement which has been made in the reports
during the past few years.
While many companies have presented excellent reports for
the year 1951, one of the best is that of the Fireman's Fund Insur¬
Company of San Francisco.
The report presents a compre¬
picture of the underwriting and investment operations
for the past five years and discusses them in relation to its func¬
tions and responsibilities.
ance
hensive
One of the
interesting presentations in the Fireman's report is
that showing the per share earnings for the past several years.
Practically every insurance company shows earnings on the
basis
of
different
no
companies for the increase
decrease of stockholder
or
reserve.
This
means
that earnings
the
a
accurate idea of the
more
a
procedure followed
earnings can be obtained.
This
by most insurance stock analysts in
estimating the earnings of the different companies.
Fireman's Fund is
one
of the
few companies that
recognizes
this method of computing earnings by publishing it in its annual
report.
,
'
y
.
Figures for the past five years taken from the company's re¬
port are shown below:
1951
1949
1950
1948
1947
Before Federal Income Taxes
$3.02
$6.52
$5.46
$3.24
Income Taxes
Adjusted Earned Per Share
on
2.46
3.26
4.24
2.47
billion
2.31
1.34
4.77
1.79
4.60
6.03
5.16
3.10
above earnings figures exclude realized and unrealized
capital assets and minority shareholders' interest and are
is the presentation of information relative to investment
Also the rate of return
on
investments improved and helped
In 1947 the average rate of return
mean
that
as
Treasury
to
(Special
17 N.Y.
City
to
The
Financial
Chronicle)
RALEIGH, N. C.—Cleveland W.
Bradshaw is
Bank Stocks
now
associated
with
announce¬
This
was
realized ap¬
the 2%s 1957/59
in February. The
when
parently
announced
were
pegged market.
a
not fully
Treasury covered all the necessary
details in a single overnight sur¬
prise
the
This
announcement.
terms
did
tors
attractive, inves¬
were
not,
this
and
accounted
for the failure of the issue.
I
that the
confess
that those
offering made
market later
declined
a mistake, but
the test of successful financing is
that
made
against
an
existing
who
proved
the
condition.-/ Successful
market
on
Members New York Stock Exchange
Members New York Curb Exchange
speculations
BROADWAY, NEW YORK 5,
Telephone: BArclay 7-3500
Teletype—NY
N.*
Y.
1-1248-49
Manager Trading Dept.)
Specialists in Bank Stocks
to
The
CHICAGO,
Fletcher
has
Financial
111.
—
been
staff of H. Hentz &
La Salle Street.
He
Bertram
to
might happen
months.
The
to
prove
V,
the
Co., 120 South
formerly
with Lee Higginson Corp.
not,
or
spend
and
I
therefore
moment
a
should
what happens
on
the next two
over
investors
be
open.
prepared
for
a
fi¬
nancing before the final terms are
set. No private issuer of securities
would
attempt to
finance other¬
I therefore
the
future
contemplate that in
the
Treasury will
vert to the postwar
making
re¬
policy of first
general announcement,
a
to the size and character of its
as
ket
has
had
chance
mar¬
to
Under such procedures any fur¬
sist
of
preliminary
a
that
would
of 2%s should
be
con¬
announce¬
exchange
an
made.
This
offering
might be
followed by a decrease in the price
of these bonds from 101 Vz to lOO1/^
100%,
or
I
more
know quite
or
less
overnight.
well that die-hard,
look
ad¬
aghast at such
procedure, but I think it is true
they do not disapprove of
a
other
ing
the
2%%
words,
I would
I outlined
exchange offering involv¬
additional
bonds
might
issuance
of
in
an
result
offering price of 100%
to
100%.
viewed
as
a
two
days, on
relatively small buying, the price
of the 2V2s 1967/72 advanced prac¬
tically
a
point.
3%
bond
when
with
term
a
of
viewed
against the
requirements of
the
or
enough
Let
free
prices of Treasury securi¬
With respect to cash financing:
cash
ury's
will
needs
nature.
be
That
the second
in
is,
of
half
of
statistically
and
the calendar year 1953.
corporations
and
tax
accrue
business
medium
for
such
who
Treasury fi¬
should be explored to the
burden of proof should
sources
full.
The
rest with those who say
not there rather than
who
claim
raised
be
that
if
some
GQPJgOIWTLOXf TRUSf
pw
of
120
the
Broadway,
those
money
of
business
published
in
accordance
the
Superintendent
to
the
previsions
to
In
give
up
on
it.
:
revisions
nounce
in
and
of
almost ready
suppose
the
guaranteed
Other
terms that will
really
savings
associations,
pension
insurance companies, and
banks,
the
chances
who
hold
better
are
because I have
officials
these
because
an
an
who
a
a
than
high regard
are
problems,
desirability of
offering is
so
406,021.26
412,429.30
TOTAL ASSETS
$2,394,372.57
deposits of individ¬
partnerships,
and
corporations
$175,888.63
TOTAL
DEPOSITS
Other
$175,888.63
liabilities
TOTAL
1,194,587.63
LIABILITIES
(not
including
subordinated
obligations shown below)
CAPITAL
Capital
$1,370,476.26
ACCOUNTS
t
$500,000.00
Surplus fund
325,000.00
Undivided
198,896.31
profits
TOTAL
CAPITAL
AC¬
clear.
principal argument against
offering of long-term bonds by
$1,023,896.31
_
TOTAL LIABILITIES AND
CAPITAL
tThis
ACCOUNTS—
institution's
stock
with
$2,394,372.57
capital
total
consists
of
value
of
par
$500,000.00.
MEMORANDA
Assets
pledged
secure
assigned to
or
liabilities
and
other purposes
Securities
as
shown
are
after
I,
deduction
that
the
of
$100,525.93
of
re¬
458.43
CHARLES
J.
the above-named
best
for
above
of
serves
above
my
SKINNER, Treasurer of
institution, hereby certify
statement
is
true
to
tbo
knowledge and belief.
concerned
financing
the
60,000.00
fixtures
assets
common
loan
The
472,225.93
stocks——
and
of
large percentage of time deposits.
I happen to be one that believes
such
and
COUNTS
commercial
and
Government
direct
Furniture
appeal to savings banks,
with
$1,043,696.00
States
Corporate
an¬
terms
brings up the possibility
of long-term bond financing. Only
a minority expect the
Treasury to
offer long-term bonds at coupon
that
balances,
items in process
obligations,
This
funds,
of
ASSETS
reserve
cash
United
that
changes
likely to be made will
succeed in materially
increasing
net sales. I hope I am wrong.
and
pursuant
se¬
are
on
Banks
Banking Law
collection
savings bonds, but I do not have
rates and
at
1952,
made
Cash,
balances with other
banking
institutions,
in¬
uals,
I
of
Y.t
31,
the State of New York.
Demand
the Treasury will
day
some
am
N.
call
a
LIABILITIES
properly-priced
fact, I
with
the
of
5,
March
on
can
Prospect No. 1 for this type of
financing should be savings bonds.
I shall not go into this
subject
here.
York
New
close
that it is
on
offered.
are
OP
THE
cluding
maximum amount of
accumu¬
buying that
REPORT OP CONDITION
is
that fall due
quarterly tax dates. But if the
on
has been
by
against
investment
and those
hre
Treasury
By the time any
marginal
the
the
Therefore
reserves
dollars
a
be raised from
may
moment
a
for
sum
to be followed by some
surplus in the first half of
sums
X
lated,
current calendar year may be ex¬
sizable
that
available
substantial
pected
cash
for
long-term bonds until it is clear
cash
a
basis that
a
contention, namely,
Treasury should not offer
bond investment.
A substantial portion of the Treas¬
seasonal
a
examine
us
in
the
money on
as
be cheap
reasonable
a
opposing
that the
ties would be insured.
extract
amount of
the
it would
But
to
earlier, in an explo¬
sion of bond prices later on.
In
other words, ultimate instability
as
ury
guess
be
permanent in¬
Treasury will tem¬
porize in the hope of higher bond
prices will enlarge. It could result,
ever
an
not
Within
the securities
the
for the objectiveness of the Treas¬
In
should
calamity.
vestment.
that
price of Treasury securities
a relatively short period.
over
this
lief
that
ther offering
of 5 yield points or there¬
about; in other words, a price de¬
cline of around-a point or so. But
willing to hold
much confidence that the
terms.
bond
investors would be
and
publish,* the precise and final
increase
an
of the longest 2%%
management, then with the pass¬
age of each day the market's be¬
adjust
itself to the weight of the financ¬
ing will the Treasury arrive at,
a
the yield
investors.
curities
wise.
adjustment.
an
sive days, the Treasury fails to
clarify by such announcements, or
otherwise, its attitude toward debt
Treasury financing when
are
in
cheap
succes¬
of the commercial banks all other
books
undergo
market
of
passage
nancing is to be effected outside
encourage
to
If, with the
them
to
long-term offer¬
made.
This might amount to
What Temporizing May Mean
such speculation, nor
investors that they
but
mar¬
preponderance
a
1977-82 would not be excessively
Treasury bills, those of the regu¬
declining the
have
A
lar series
in
be
happen to
The present
Following a
preliminary announcement to the
contrary, the bond market would
if it doesn't.
Treasury's job is not
mistake
a
that
was
proce¬
point and one-half advance in the
Chronicle)
added
fi¬
what
to
as
vocates may
(Special
a
refunding
may not take place.
I cer¬
tainly don't know whether it will
will
not
do
a
will
that
Laird, Bisseil & Meeds
respect to
their 1953 tax liabilities. A favored
Kenmore Drive.
Hentz Adds to Staff
with
investor
low-interest-rate-at-any-cost
Request
Now, I have outlined
dure
nancing cannot be predicated on
a
Circular
Treasury security
that
deficit
Smith, Clanton & Company, 2508
First Quarter 1952
the outlook for
prices.
corre¬
new
nancing against
analysis,
my
with respect to its financing
have a very important bearing on
It does
financing must
be handled differently than they
were when
the Treasury was fi¬
ment
With Smith, Clanton Co.
COMPARISON & ANALYSIS
Gibbs,
at
financing, and only after the
to bolster investment income.
Bell
bonds
that, in
a
This, there¬
fore, requires that the market and
Company has shown steady
growth over the past five years. In 1947 the total amounted to $3,645,000 as compared with the record of $6,205,000 last year. A
large part of this gain is accounted for by the larger volume of
invested funds which increased by
approximately $70 million
during the period.
r
A.
of
so
ments
the
2.56
2.69
The net investment income of the
(L.
or
sponding price increases.
see
ury
'
to accept
operations.
120
that the Treas¬
mean
therefore is enabled to sell
ury
offering,
0.54
adjusted to the capitalization as of Dec.'.31, 1951.
Incidentally, the earnings of Fireman's Fund last year made
a much better
showing than did those of the industry generally.
Whereas most companies reported substantial
underwriting losses
and sharp declines in earnings on an adjusted
basis, the San Fram*
cisco company actually showed a gain in earnings.
Another interesting feature of the annual report of this Com¬
pany
This does not
made
Add: Equity in Unearned Pre¬
mium Reserve Incr. at 35%
The
important customer activity. And
a run-up in the price of Treasury
bonds of a point or
so
over a
period of a week has occurred.
to
$0.65
Earned Per Share—
gains
market
to encourage
Earned Per Share—
After Federal
is sensitive and
narrow.
I mean by that, that on
occasions longer-term bonds will
undergo price changes of as much
as
Vz a point in a day with no
curity
Federal Reserve officials believed
period of rising premium volume and
overstated during a declining period.
By adjusting for these changes in the unearned premium re¬
serve
se¬
investment income.
be understated during
may
The
can
I
with this.
yields reflect
ing
the decisions taken by the Treas¬
coupon.
3% Bond?
yields prevailing in
of doubt that any
You
allowance is made in reported earnings by the
equity in the unearned premium
ket
lieve, has been given insufficient
by investors.
newly-freed Treasury
lower
market.
agree
consideration
in¬
creased the precariousness of set¬
ting the terms. And although I
am
convinced that Treasury and
statutory underwriting results and
In other words
is
the
understanding of the character and operations of
companies. This is true even among some of the so-
insurance
3%
a
a
Some say that a 3% bond is out
the
question because of the
much
lack of
a
with
sum
Should There Be
Continued
bond
a
of 2%%.
rate
coupon
believe, on the other hand, that
Treasury could raise a con¬
siderable
considerable
exists
offer
to
were
a
the
comprehensive
more
For example,
much that the Treas¬
raise any reasonable
it
carrying
report.
casualty companies have participated in this trend
if
sum
general trend on
a
offered.
could
ury
of corporations toward the publication of more informa¬
detailed annual reports.
there has been
return
I doubt very
reports but in spite of the progress already made, there are still
some that provide only meager information on operations.
It is
For the past several years
and
Thursday, April 24, 1952
.
the
6.05% in 1947 and in 1951 amounted to 8.17%.
Bank and Insurance Stocks
tive and
.
Mr?''
and in 1951 reached 1.91%.
the part
.
'
CHARLES
J.
SKINNER
Correct—Attest:
OAKLEIGH L.
NORMAN
J.
R.
1
MacGAPPIN
KENNETH K.
WILLIAM
THORNE
McLAREN
WATSON
Directors
f
j
Number 5110
Volume 175
in
place
of
bare
be
This
would
buying
of
yield
the
press
bonds
take
offerings.
day-to-day
marginal
The Commercial and Financial Chronicle
.
which would
market
a
.
would
asserted
be
would
.
outstanding
considerably. Consequently,
investor money
might be reluctant to purchase a
issue
new
priced
offered
of return
against
such
unless the rate
seemed dispro¬
portionately "away from the
mar¬
ket."
words, if the Treasury
until
wait
to
were
obviously
sums
then
by
would
substantial
available,
bond prices
were
time
that
advanced
have
ginal demand, and
on
a
mar¬
successful
financing by the Treasury would
represent
chases
any
less forced
more or
pur¬
the part of investors as
on
whole.
I
want
this point.
clear
be
to
on
fund
rate of
coupon
a
fully tax¬
higher and
broadly applicable. Conse¬
tax
more
quently,
rates
than
are
are
2%% bond today would
a
represent
ey
lower return
a
on
mon¬
similar rate during the
a
1930's.
But
ground
between that period and
that lies ahead.
In the
the
one
there
the
against
a
pegged.
is
It financed
set
were
did
not
the
debt.
a
financed
Treasury
market
in
the
that
on
common
was
market place.
finance
on
not
terms that
ones
tend
Federal
Regardless
of
Reserve
ture
cash
the patent
lower
the
large
weight,
actual, of these
offset,
in
my
that
may
Burns Joins
Paul J. Nowland Go.,
Trading
Dept. of Morfeld Go.
ST.
LOUIS,
intermediate
yields
offered
Mo.
Eugene
—
New NYSE Firm
T.
WILMINGTON,
and
It of Treasury debt management will
have an important bearing, but
by I doubt that even the Treasury
which
System.
the Treasury
necessity -to re¬
can
bring about
a
resumption of
the low rates of the past decade—
except—as
ceeds
needs,
in
Reserve
the
government
dominating the
System.
With Barclay Inv. Co.
With Thomson, McKinnon
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
LA
Noonan has
suc¬
Federal
111. —Byron
CHICAGO,
GRANGE, Ga.—Herman O.
Hamilton is with Thomson & Mc¬
would not buy.
with
Barclay Investment Co., 39 Soutt
La Salle Street.
Kinnon, 14 North Court Square.
idle funds
They would. They
be grateful for another
might
even
2V2%
bond at
But such in¬
par.
in my opinion, would
view the newly acquired invest¬
vestors,
ments
temporary, rather
as
permanent holdings.
than
They, I
am
would be quick to sell such
Treasury securities as non-Treas¬
sure,
UNIFORM SECURITY TITLES
investments became available
they would be tempted to
speculate on the renewed avail¬
ury
and
ability
of
non-Treasury
—through all reports and records.
media.
Thus any tendency on the part of
the Treasury to starve the market
for long-term
luctant
to
credit in
sures
bonds,
times such
an
in
security
prices.
the
sell
would
not
conform
seeking to
of
maximum
of
is
commer¬
banking system.
It
to
seems
sell
requires
in
step-up
the
-.4
Treasury
come
securities
contrast to temporary
-
.
"
•
financing
achieving permanent invest¬
in
.4
some
ing but the real gain would
ments
"
in
holdings.
RECORDS
STOCK
the alternative of wait¬
over
from
for management action.
bold
obviously
small
the Treas¬
REPORTS
—detailed income information in time
in seeking
bonds. Such a
be
Treasury
policy
costs
that
me
needs to
ury
to
COMMISSION ANALYSIS
Treasury
securities outside Of the
cial
details, including customer names
and addresses.
Treasury
Certainly
such
objective
the
—in all
ultimate in¬
long-term
abstinence
with
ACCURATE CUSTOMER CONFIRMATIONS
re¬
these, in¬
as
unnecessary
stability
to be
or
with private
compete
0
—accurate customer identification
with
automatic
daily balance and control
DIVIDEND
RECORDS
Repercussions of Failure to Offer
*,V:
Long-Term Bonds
Again, however, the weight of
opinion in the market and the
realities, partly
that
political, require
consider the
we
repercussions
might follow from any fail¬
that
of the Treasury to offer
ure
bonds.
term
If this is
believe investors
long-
the case,
will
—automatic transcribing
holdings
as a
basis for charging
ing accounts.
I
of customers'
or
credit¬
1
the
assume
Treasury's policy is to temporize,
to
advice
seek
but
to
adhere
caution, in the hope that it
eventually
sell
long-term
to
DIVIDEND NOTICES
may
bonds
—prepared in accordance with govern¬
at lower rates.
This
will not
fidence
of
increase the
investors
securities.
in
will
It
con¬
Treasury
impair
their
required reporting.
confidence because they will lose
faith in the
1
the face of serious
In
ury
objectiveness of Treas¬
officials. The Treasury there¬
by
would
IBM
invite "scare buying"
outstanding
Treasury bonds
with
comparable
unstability in
their prices. The situation in the
Treasury security market might
of
be
similar
the
to
the
m a r
buying
scare
half
experience
our
commodity
of
1950
k
in
e
the
and
period
1952.
ilar to
of
It
decline,
also
would
the experiences
in
goods
where,
and
of
range
For
and
the
longer
had
back
then
a
some
to
of
tions
was
.
..
the
helps
you
combat
banking
in
other
and
the
less
than
excess
system,
financial
Treasury
Vs
of
Treasury financing of
>
'•
{\
•
)"'•V.\-V
v'
..
•'
.
,'
'
,
.
;
.
,-
•.
■&).
;•'
S'/.-'•
.
,
DAILY JOURNALS
—complete history of all account entries
for reference,
control.'
daily trial balance, and
■
rising costs of doing business
CUSTOMER STATEMENTS
—accurate
the
a
su¬
reserves
of
idle
institu¬
bill
rate
1%,
but
long-term
addressing through machine
control. Statements
IBM
INTERNATIONAL
BUSINESS
dearth of
investments,
the
time
find my
I
run
trending
We
perabundance
funds
you
590 Madison A venue,
prepared from
punched cards previously proved correct.
been
non-Treasury
in
saves
con¬
rising
high labor costs,
thoughts
1930s.
It
manu¬
found their goods
priced out of the
of popular demand.
have
profitable direction of your business.
sim¬
manufacturers
to
need for close control
through the
force of circumstances
taxes
all the timely
•
1951
be
facturers of certain lines of
sumer
and
you
.
second
zoomed
prices
upward, only to be followed by a
long
Accounting gives
information you
help shortages,
in
when
ts
regulations and in advance of
ment
MACHINES
Now York 22, N.Y.
W
joined the staff of the
I do not contend that
investors waiting
2
Del.—Paul J
long-term Burns has joined the trading de¬ Nowland will acquire member
Treasury bonds.
partment of Morfeld, Moss & ship in the New York Stock Ex
Hartnett, 721 Olive Street, mem¬ change
and
form the firm o
Consequently, I do not believe bers of
the Midwest Stock Ex¬ Paul J. Nowland & Co. as of Apri'
that interest rates on long-term
change. Mr. Burns was previously 24, in partnership with W. E. Tull
Treasury bonds will move lower
manager of the trading
depart¬ Mr. Nowland has conducted hi:
over
the longer-run even though
own investment business from of
capital expenditures decrease and ment of Metropolitan St. Louis
fices in the Equitable Building foi
business
becomes
recessionary. Co., and prior thereto was with
many years.
Obviously, the prudent character Dempsey-Tegeler & Co.
on
the Treasury's fu¬
faces
to
its
of
The
refundings
will
opinion, other forces
were
imposed, if necessary,
unlimited par support on the part
of
portion
both potential and
Today such bonds
able,
som6
short-term
partly
were
tax free.
1930's
In other
a
required
2%% for bonds that
de¬
the large mass of
market conditions,
bonds
(1713)
•
22
(1714)
The Commercial and Financial Chronicle
.
.
Thursday, April 24, 1952
.
'
•
.
i
New Orleans Bond Club
♦
ORLEANS,
La.
»
»
.1
.
The
k.
,
its
News About Banks
The
—
..•'if#
»
Bond
Club
of
NEW
NEW
OFFICERS,
will
sponsor
REVISED
address
Bankers
and
ETC.
dent
X.
and
tory of the Quarter Century Club
tennial
Di-
of The National City Bank of New
the
of
York
Research
of
t
the
i
r
b
o r s
on
Inc.,
bank's
(April
served
,
the
at
St.
Harold
X.
Bank
Farmers
1937.
speak on
Conditions
Market."
of
whom
for
present
t^e
at
of
the
bank
and
Chairman
of the Trust
W. G.
Na¬
of the
Company; Howard C.
bank;
Lindsay Bradford, Vice-Chairman
of the Trust Company and Rich¬
ard S. Perkins, President of the
way, New York City, members of
Trust Company^ were also hosts.
the New York Stock Exchange,
Harry P. Wehr, head of the pur¬
announce
that
John
Brick has chasing department was Chairman
with
associated
Broad¬
firm.
the
of
this
Club
formerly with Kid¬
der, Peabody & Co.
CONDITION
OF
Century
Randolph
S.
Manager
Varick
,
Quarter
Committee.
Merrill,
next
4REPORT OF
year's
Street
of
the
Branch,
will
year's Chairman.
plete
bank's
The
be
com¬
world-wide
Underwriters Trust
Company
50
the
Broadway,
close
of
business
published
in
accordance
by
the
to
the
provisions
the State of
with
balances
banking
Banking
and
of
with
items
and
11,833,451.96
and
1,263,824.57
de¬
bentures
Loans
1,304,423.58
and
discounts
cluding
draft
premises
None;
furniture
ture;
and
and
fix-
ASSETS-.:
$39,606,545.62
partnerships,
and
21,803,558.80
4,403,132.19
______
Deposits
of
United
States
Government
Deposits
of
litical
319,482.89
States
and
tions
485,951.08
(certified and
officers' checks,
TOTAL
Other
8,383,630.10
;
institu¬
..
Other deposits
etc. i
981,471.61
DEPOSITS
—
$36,377,226.67
liabilities
TOTAL
214,536.25
LIABILITIES— $36,591,762.92
CAPITAL
$1,000,000.00
1,000,000.00
—
Undivided profits
AC-
$3,014,782.70
—
TOTAL LIABILITIES
CAPITAL
tThis
1,014,782.70
_
CAPITAL
COUNTS
AND
ACCOUNTS—
$39,606,545.62
institution's
capital
stock
common
total
with
consists
of
value
of
par
$1,000,000.00.
<
(a)
pledged
are
after
deduction
I,
best
above
of
re¬
the
as
44,219.00
shown above
of
the
UP
New
Wooster
Pike,
Secretary,
institution,
hereby
statement
knowledge
is
and
of
the
certify
true
to
the
a
D.
PIKE,
Correct—Attest:
W.
KORELL1
SUMNER
B.
V.
foreign
York
College
af his Alma Mater. -:
FORD
|
The
U
City.
granted
.
-1
TAMNEYJ
TRUST
date of April
the
May 20.
date, the direc¬
same
the
transfer
preferred
The amount of gold
of
Issue Department
capital
of
The
the
bank
has
COMPANY,
proposal
$2,441,600
175,889
166,500
1,043.6.96
U. S. Govt,
472,300
__
basis
of
one
share
for
6V2 shares held of record
security
holdings
Surplus and
to
L
■_
undi¬
29.
The shareholders
asked
profits
523,896
471,300
Wales
the
for
directors
and
to
authorize
to
into
enter
an
into
$100,000)
Trust
the
der
the
Montgomery
of Norristown, Pa., un¬
Co.
charter
title
and
of
the
latter, became effective March 14.
#
J.
.
Harry
*
writers,
at
that
fixed
so
price
a
for
holders.
if
Company
Baltimore,
of
Maryland,
elected
was
of
the company at the regular
monthly meeting of the board, on
April 16. In announcing the latter's action, B. 14. Mercer, Presi¬
death
recent
Brooks.
the
of
Rodney
business in
surety
1910
S.
as
a
clerk with the American.
Bonding
Company of Baltimore. When that
merged
company
with
the
Orange Free State for Janu¬
and February, 1952 is shown
below, together with figures for
ary
■
:
Fine Ounces
$
1952
1951
January
972,906
954,791
1,471,260,301
February
916,071
886,057
due
428,059,660
387,038,331
holdgs.
689,849,255
701,176.316
disals.
294.544,205
292,451,914
11 900 "97
9,456,132
&
if -v ".
The
SILVER
se¬
Douglas
Omaha, Neb.,
During the first quarter of 1952,
there
County
Bank
if
if
sale
of
of
amount
'
>'f
$200,000,
fine for
months'
per
both cash
delivery.
and
There
was
steady demand for essential in¬
dustries and this continued to be
met
by sales of silver from official
stocks.
The New York market quotation
stock
a
the
ruled
the
to
and
which
a
\/y-
■
stock
new
.999
ounce
two
Harvey is President of the bank.
The
in
movements
no
quotation
throughout, therefore, at 77d.
of
the pro¬
announces
were
official
..
motion of Walter W. Clark, to the
office of Cashier on April 1. K G.
F&D
in 1913, he became associated with
the
latter's
claim
department,
as
millions
the corresponding months of 1951
for the purpose of comparison:
profits—
ro.'is
Ur.div.
millions
$2,335
1,554.837.578
banks-d
Govt,
curity
J.
Mr. Schisler first entered
and
from
with
1,498,582,734
Deposits
U.
$299
1.597,499,971
resources-
Cash
$1,770
were
Dec. ?1, '51
$
Total
and
gold
been
The gold output of the Transvaal
and
MICH.
Mar. 31, *52
of
had
held at the end of 1951.
if
DETROIT,
at
director
a
serves
NATIONAL RAVK OF DETROIT,
Vice-
President of the Fideiily and De¬
posit
*
loss
January and $266 mil¬
compared
share¬
to
the
R. A. Butler,
Exchequer, re¬
lions in February, an average for
year of $63 millions a week.
At the end of
February, the re¬
than
"
if ;
First
sale
,
#
Schisler,
less
un¬
the
covering
not
reserves
millions in
the sale of shares unsubscribed by
the shareholders,
to the under¬
underwriters
that
dollar
the
Pa.
with
Mr.
the
vealed
agree¬
ment
Bank, of North Wales,
(common
capital
stock
of
11,
Chancellor of
which
National
March
on
on
each
also be
price at
buying
remained
the
course
of
his
Budget
speech in the House of Commons
the additional shares will be sub¬
scribed
The merger of the North
fix
to
England's
In
April
on
will
of
gold
calculated.
was
capital stock
375,000
shares
through the issuance of rights
the
_
325 000
for
per fine ounce,
which figure the above amount
at
in¬
to
of
changed at 248s.Od.
been
directors
Bank
price
common
997,200
472,226
from
from
due
—
vided
Dec. 31, '51
the
of
the
held in the
of the Bank
England is unaltered at £356,823.
special meeting of the share¬
v
1.
GOLD
retirement provision to the
holders
$2,394,373
■
and
banks
e d
States Military
being honored by a
special display in the windows of
is
the
East River Savings Bank in
Rockefeller Plaza, New
York, and
by other exhibits in its branches
throughout
the
city.
This
year
marks
the
150th
anniversary of
founding
of
the
Military
Academy at West Point. The dis¬
plays
centered
are
theme of the
about
the
Sesquicentennial ob¬
servance,
"Furthering Our Na¬
tional Security." The exhibits in
the East River
Savings Bank are
varied in subject. The West Point
Museum has loaned
many of its
prize materials to the bank for
Included
guns
artillery
mod¬
are
from
1800 to
These models show the de¬
velopment of artillery in the U. S.
Army. Another display features
is
of
also
period
the
an
Indian
exhibit
from
Wars.
which
the
tivities.,'
through
are
Mr.
Scott
used
by
during
Wars.
are
General
the
medals
of
items
medals
and
and
of
a
of
and
International
surance
of
the
of
the
member
a
Association
Counsel,
the
of1. In¬
Vice-Chairman
publications
committee
of
tal $100,000)
tional
both
First
the
Association,
and
is
a
member of both the Maryland bar
and Baltimore City bar.
\
V
<
National
plus
165
third
of
with
people,
the
the
the
time
from
or
staff
of
500.
suggestions
more
pected,
suggestions
than
committee
for
its
one-
Faped
ex¬
extended
report
in?
and
results
the bank paid $801 in 100 awards
to
64
staff
members.
Leslie
D.
Austin,
Jr.,
of
the
Street office in
bank's
Main
Norfolk, Va.,
won
the
$100 top award for a sugges¬
tion to revise the system of clear¬
ing
returned
Miss
checks
in
Norfolk.
Mary Virginia Jenkins,
Streets
second
won
bank
prize
suggestion
to
posting
loan
of
in
ranged
matters
the
for
larger
a
$50
time
„
for
in
a
the
:'sSt ''
«
An addition of
cently
made
capital
of
the
better
'* 1
from
$100,000
(March
stock
dividend
sale of
12,500
shares
to
to
Countv
increasing
$250,000;
a
stock made
possible the enlarged capital.
14,
the
no
authorities
licenses
more
production
that
quarters.
cated in
open
The branch
is
actions
lo¬
on
A public
April 5 marked the
C.
Sammons,
written
a
silver
was
great part of the Con¬
a
imports
of
silver
from
exchange
trans¬
Continental free
the
on
markets.
Burns, Oregon.
house
of
the
has
Portland, Oregon, recently moved
into newly enlarged and remod¬ Dollar/Sterling
eled
Following this
announce¬
ment, prices for exportable silver
were quoted as low as 82d. to
83d.,
Presi¬
but sellers generally held off at
banking
these levels and the market re¬
organization, was guest speaker at
acted to 83d. to 84d.
a
by the end of
luncheon given by the Burns
of
the
Chamber
of
state-wide
Commerce
to
the
mark
month.
y
the
opening. H. R. Dickerson is
Manager of the bank's branch at
Burns
and
Assistant
R.
H. Van
Hoiiteri
Lloyd E. Canady Adds
is
(Special
Manager.
to
The
Financial
.
Chconicxe)
RALEIGH, N. C.—Cleveland W.
Bradshaw
The First National Bank of Bur¬
has
with
Lloyd
lington, Wash, (capital stock $50,Commercial
000)
was
placed
in
voluntary
liquidation on March 15 having
been
absorbed
by the National
of
Commerce
of
With
Seattle,
(Special
become
Park
On Vacation
Canady &
Bank Building.
tnann
The
Financial
of
Capper, New York City,
vacationing with his wife -in
Mr. Capper,
thread
line
an
fishing,
will
turn from
Florida
planning
Wall
is
Street
to form the
Anglers' Club with
other Isaak Newtons.
j
-
become
Chronicle)
—
Hall
associated
C.
with
New
York
and
Cincinnati
Exchanges.
Joins The Marshall Co.
try
May 12th, Mr.
the
Stock
advocate
his hand at bonefish and tarpon in
the Florida Keys.
After his re¬
Ohio
Benj. D. Bartlett & Co., members
of
&
Florida.
Co.,
Benj. Di Bartlett
to
has
associated
E.
CINCINNATI,
Capper
new
and the
on
exchange
undoubtedly been re¬
exported to the U.S.A. to complete
Milton Capper, partner in Edel-
the
free
ultimately destined for the
Hemisphere.
For some
London
■
National
the
of
quoted
Western
the United States National Bank of
Bank
re¬
rates
that
undertaking
not
Wash.
was
14)
of $50,000
$50,000 of
V
the
out
of
time past
is
Farmers
$150,000
•
March
tinental
bulletin
'
Bank of Canfield, Ohio,
it
(in
Harney
board.
•■/
On
recommendation
and
premium
movements
Continental
o*
'The
Other
from
the
announced
consolidated
profits of not less than $150,000.
major
accounts.
suggestions
to
Richmond,
and
save
under
Farmers
su¬
pervisor of the checking and sav¬
ings department at the Fourth and
Grace
of
By '
dent
recently,
announced
The
&
9d.
markets.
stock, par $20 each); sur¬
$500,000 and undivided
occasion/' E.
creased the amount of awards.
final
Bank.
and
First
with
Dollar/Sterling
the
charter of the
Bank,
the
$250,000
common
for suggestions and offered special
cash prices for the best ones. The
458
of
and
bank, which opened under its new for the export of Bar Silver to the
title on April 1, has a capital stock Continent would be granted with¬
The Bank of Virginia at Richmond
—
the
under
National
of
replied
ity
7d.
the official price, in conform¬
over
and the Farmers Na¬
(capital
$150,000),
Somerset, Ky., has been
title
As the opening event of its 30th
anniversary celebration this year,
asked the entire staff in all offices
between
(capi¬
Bank
of
effected
ican
Bar
prices for exportable silver ranged
*
The First National Bank
1950.
of
if
if.
First
the insurance section of the Amer¬
in¬
General
sample of
awards
is
the
Winfield
Mexican
Other
the
George Goethals.
the
time
elected
was
Schisler
includes
many famous
shown, including the
also
He
Vice-President in February,
Revolutionary
the
Civil War. Sabers of
men
There
was
eventually
from
i t
n
Academy
terest
Directors
on
A
YOR*.
___
Deposits
Cash
staff
Civil
C.
years
member of the Board of Trustees
sword
belief.
WILLIAM
J,
in
degree
of
Doctor
of
Humanities, and he is presently
firearms
re¬
D.
above
my
past nine
in
in
news
the
relics
204,758.82
William
of
$8,662,278.35
—
deduction
above-named
iim
and
headquarters
directed
1943
the Woos¬
on
News,"
the
reports
date.
of
serves
has
For
started
European
-with
London.
and
——
(bi Securities
after
shown
as
of
serves
that
assigned
ofher purposes—
Loans
are
or
liabilities
secure
for
"Daily
became
He
els of
MEMORANDA
to
College
University
Columbia
Ohio,
of
Flory
Wooster
these exhibits.
•
Assets
Mr.
the
ACCOUNTS
Capital t
L————
Surplus fund
TOTAL
member
a
po¬
subdivisions.
Deposits of banking
from
the
1938
In
corpo¬
rations
as
Trustees.
School of Journalism.
he
corporations ——
Time deposits of individuals;
partnerships,
of
graduated
news
and
13,475,700
17,298,200
16,507,490
Re¬
4
undi¬
Board
manager
deposits of individ¬
uals.
and
Harry R. Flory
its
83,597.00
155,711.88
LIABILITIES
Demand
discounts
the
on
unchanged at 88 cents per
rising to the position dividend of $100,000, has served
ounce
.999
fine
vided profits.—.
throughout the
of Manager.
2,014,783
2,006,900
Following his elec¬ to increase the capital of the Peo¬
period.
tion as a Vice-President
in/1947, ples National Bank of Paducah,
From the beginning of the quar¬
he was placed in full charge of all Ky., from $200,000 to
$500,000, ef¬
Broadway Savings Bank of New
ter
until
the
the F&D's claim and salvage ac¬ fective April 5.
middle of
*
March,
York announces the election of
ter
.
vaults
/
8,698,800
11,833,452'*
&
his newspaper work
owned,
assets
TOTAL
holdings'
and
16,507,490.12
8,458,047
security
over¬
—
Bankir.g
Other
(in¬
$1,632.25
i
s
from
—
Govt,
Loans
of States
and
subdivisions--—
notes,
S.
Dec. 31,'51
$39,606,546 $41,235,200
36,377,227
38,025,800
—
and due
Surplus
process
tlirect
bonds,
2ash
/
in¬
guaranteed
political
Deposits
■■
other
in
Mar. 31,'52
fetal resources
J.
Government
obligations,
Other
■;" yy^yyy:
$3,458,046.51
States
Obligations
of
balances,
reserve
cash
.
collection
United
Law
UNDERWRITERS TRUST COMPANY, N. Y.
banks
institutions,
cluding
made
pursuant
York.
New
assets
Cash,
call
a
Banks
of
the
of
Y., at
31, 1952,
N.
4,
March
on
Superintendent
resources
the
York
New
held' by
Finance Corporation,
,
membership of
City Quarter Century
Club is 2,004, representing
55,695 dent,
stated
that
Mr.
Schisler
combined years of service.
would fill the vacancy created by
che National
below the quarterly
bullion letter of Samuel Montagu
&
Co.,
London,
written
under
surplus account.
the
and
Mt. 31. '52
Total
Board
Sheperd, President of the
langley & Go.
W. C. Langley & Co., 115
was
stock
authorized
crease
frst.
of
Board
Silver Markets
We reprint
called for April 29, to vote on the
NEW
199
Century Club dinner in
Wm.
Gage
Brady,
Jr.,
English Gold and
8,
of
outstanding
be retired for cash
stock
honor of
anniversary
CORPORATION
THE
of the Executive Committee of the
of
150th
the
in
The
April
on
of
amount
$2,000,000 from
view includes
on
struck
years
the
tional City, made a brief address.
W. Randolph Burgess, Chairman
John Brick Joins
Mr. Brick
medallion
have
25
with
contrasted
Chairman
the
and
all
continuously
more,
Quarter
"Business
become
material
Sesquicentennial Booklet.
1,225 members of the
staff,
members
Schreder
Schreder.
Stock
City
April 17.
or
Charles Hotel.
will
entire
tors
Special Sesquicen¬
annual banquet at the Hotel Asfor
t
u
today
Mr.
and
Trust Company attended the 16th
Dis-
Grou p
24)
gathering in the his¬ United States.
of
retirement
Also,
The largest
Presi¬
rector
meeting
construction
to
Executive
-
Detroit, Mich, at
the
preferred
CAPITALIZATIONS
Schreder,
Vice
regular
the
by
Harold
directors
at
$2,000,000 par value preferred capi¬
tal stock of the bank, representing
BRANCHES
Orleans
of
Bank
authorized
CONSOLIDATIONS
New
an
board
Detroit
To Hear H. X. Schreder
NEW
t
(Special
■
to
The
Financial
Chronicle)
'
MILWAUKEE, Wis.—Walter G.
Mann has joined the sales staff
of
The
Water
Marshall
Street.
He
Co.,
762
was
North
formerly
with Lee Higginson Corporation.
Volume 175
Number 5110
.
.
The Commercial and Financial Chronicle
.
(1715;
Assel
Our
Reporter
Governments
on
I Oth Consecutive Year
The
By JOHN T. CHIPPENDALE, JR.
Puts
Brokers
The government market continues to
stay on the constructive
York,
side, with
new highs being registered in
many issues.
Volume is
expanding, and although it is not yet up to previous standards,
it
is
trending in
many operators
the
in
direction
that
is
giving
Treasury obligations.
have
securities
of
appearing from time to time.
CINCINNATI,
Sid
of the
A
dinner
D.
event
Joseph H.
Be¬
of the
nick &
the
April
on
Botts and
enlarged interests of buyers, and the growing number
of purchasers, the market has been able to absorb
these offerings
without any important effect upon the
trend of prices.
own
the
16.
J. H. Assel
with offices in the
Bank
and
formed
Building.
&
Co.,
bers of the New York
his
Com¬
Provi¬
Herbert
Bantel
Broadway, New York City,
F.
120
mem¬
Stock
Ex¬
change and New York Curb Ex¬
change,
Daniel
announce
and
G.
that Gordon G.
Donald
Gallagher
have been admitted to the firm
as
Lawrence
general partners and that Thomas
&
J.
Godnick, God-
co-Chairhien of
were
has
Garvin,
Kreimer has formed H. F. Kreimer
Charles
Sons,
dent
Admits New Partners
Assel, Kreimer &
Assel
company,
pany,
held at the Hotel New
was
Yorker
Garvin, Bantel & Go.
in¬
Company has been dissolved
organ¬
commemorating
■
Ohio —The
vestment firm of
ization for the 10 consecutive year.
To be sure, the absence
large offerings is still responsible in no small measure for the
sharp upturn in certain issues, but there has been, however, more
cause
Dealers
re-elected
Kreimer
Form Own Firms
Association, Inc. of New
of
sizable amounts
Calls
Harnden President
to
encouragement
and
an d
23
Co.,
with
offices
Provident Bank
affair.
also
the
in
Building.
Thompson
has
retired
as
a
general partner.
Although the restricted issues appear to have the front of the
stage, because of renewed buying by fund investors, there has
been a very persistent demand for the
eligibles.
Pension funds,
private, Federal, and those from several of the states, have been
mainly responsible for the strong tone in the tap bonds. Commer¬
cial banks in the
outlying areas have been getting large city bank
competition because of the desire to extend maturities.
ANNUAL REPORT-1951
Liquidity Overdone
A
comparison of the holdings of government securities at the
end of 1951 and at the close of
1950, shows some interesting devel¬
opments have taken place in the year just past in the
ownership
of these obligations.
Commercial banks, for instance, were much
more
liquid at the close of 1951 than they
Treasury bills and certificates
of their total
at the end of 1950.
were
of indebtedness
THE NEW YORK
than 26%
were more
holdings of government securities at the enq of last
just slightly more than 9% at the close of the
year, compared with
previous year.
Notes were under 19% at the end of 1951, con¬
trasted with 30% at the close of 1950." Bonds amounted to less
The Year in Review
than 55%
at the finish of last year, against more than 60% at the
This important shift by the
deposit banks into the
liquid short-term lower income Treasury obligations during
close of 1950.
more
The
1951 may explain in more
ways than one,
banks to acquire the longer-term
the recent move by these
higher income government
same
obligations.
too far
Liquidity preference might have been carried
by the commercial banks.
the
:
short range.
at
seen
as
achieved further
We
encouraging than
more
substantial
improvement of
our
The other important
development brought out by the Treasury
figures on the ownership of government securities was the
heavy
turn-in of the last two isseus of the restricted bonds
in
physical plant, contributing both to efficiency and to the
quality of our service. We showed gains over 1950 in
traffic hauled and in revenues. However, chiefly because
the
of two
1951, at
request of the
locked up rather
Treasury, for the non-marketable 2%s.
permanently
sizable
a
amount
This
did
marketable
of
bonds that could have been used to create loanable funds
through'
sale in the open market.
The other feature that strikes one-
noticeably
Savings banks
on
balance
were
probably responsible in
small
no
ters
came near
for this
measure
the end of 1951,
a
them
the
near *
eligible
obligations.
.
tap
bonds
were
liquidated last
buyers of the eligibles
obligations.
well
as
as
most
The consequent loss
of
caused
revenue
$10,079,298 net deficit for the month of February.
f avored
costs
Other investors
the
idled.
Impeding recovery—and depressing the earnings pic¬
throughout the entire year—was the fact that freight
rate
increases authorized by the Interstate Commerce
Commission were inadequate to meet greatly increased
J.
year.
key rail centers
men at
Federal
<
year
were
chiefly responsible,
$2.28
or
per
net
The
most
or
$2.84
share, from
per
disappointing
depreciated investment.
on
return
of only 2.1
per
•
the
short-term
partially exempt obligations.
the
2%%
due
by the commercial
obligations,
These
acquisitions
were
1955/60, followed by the 2%% due
in
in' the
by
paced
1956/59, the
to central
We
our
drive to control costs and improve
by betterments to the physical plant and constant
attention to operating methods. Acquisition of more new
diesel-electric locomotives, new freight and passenger cars
city banks, with those in the New York district leading,
way,
with
the
Chicago
district
third
because
the
country
including diesel rail passenger cars, modernization of
major freight yards" and of shops, and further roadway
and signaling improvements are among the principal steps
1956/59, showed a split picture with the
leadership being shared by the New York City banks and the
city banks.
taken toward those ends;
As for the 2%%
the banks in the
purchases
member
they
of
were
not
due 1960/65, there was
reserve
this
banks
issue
were
even
the country banks.
a
city districts
were
next
as
were
concerned.
far
close second.
The
the leaders'
The
buyers
as
New
as
far
York
was
brought
:
/
by
The 2%% due 1958/63 showed the large
money
center
f
The shift by
securities
made
in
the
1951,
leader.
<
;
/
commercial banks
affected
nearly all
into
of
,/ '
institutions
the non-member
principal buyers of the
September 2Vfes
banks, with the Chicago banks
a
were
distant second.
essential
additions
moderate 3.8
position taken by the eastern roads. A final decision by
expected later this year.
Hope
The
for fairer treatment
seen
for fairer treatment
prospect
of the
railroads—in
and in the question of subsidy and preferential
regulation for competing forms of transport—has meas¬
urably brightened. Among several recent encouraging
sign# is the "progress report" issued by the Senate sub¬
rates,
committee
studying domestic land and
tation.
water
transpor¬
•/...■■■
This
pointing out major discriminations
railroads in national transportation policy,
promises to serve as a- powerful focusing tfgent for a
growing public and official awareness of our industry's
problems.
document;
against tile
and
betterments
Increased
It
interest encouraging
is
encouraging to find stockholders taking an increas¬
ing interest in the Central. Attendance at the 1951 annual
meeting,
exceeding 450,
larger
was
that!
ever
before.
Stockholder participation set a modern-day record for the
Central as 79.3 per cent oi the company's shares were
voted in person or by proxy.
Future holds
promise
per.cent increase
unions in March
of Dec. 31, 1951, amounted tor $949,860,317.
as
lag behind costs
vitally needed
the
Interstate
amended in
amended,
authorized
decision
reserve
The
other
of several key factors makes the future
unusually difficult to gauge. If further inflation occurs,
it will be mirrored in our costs through higher materials
prices and through wage agreements tied to the cost-ofliving index.
A strike by three operating employes'
to
offset rising- costs.
Commerce
March
it
sought
to
reflect
rates
freight rate increases
A petition, filed with
Commission
15
further
per
in
cost
cent
has
the favorable
1952 should remain
■
The railroads in 1951 sought general
'
a
comparison.
moving between eastern and southern, and eastern
The ICC examiners who
southwestern, territories.
between
and
city banks.- They were followed by the New York
City member banks, but these eliminations were
very small by
important development in the so-called
The uncertainty
Rates
casualty of the longest eligible Treasury obligation.' The
heaviest selling in the 2%% due 9/15/67-72 last
year was done by
the
re¬
t
conducted hearings in the cases have filed recommenda¬
tions supporting, ill principle although not in degree, the
On
short-term, liquid
these
traffic
and
obligations totaled $66,279,916.
As a substantial offset, the Central retired $31,570,085
in older debt; including debt of lessor
companies- and
amounts due NeW York State in grade crossing eliminalions. Total outstanding debt of the Central'and lessor
city institutions and the country banks followed in that
order, but well behind the
an
made
were
"divisions" cases, brought by the eastern railroads in 1947
to
secure
their fair share of through freight rales on
companies
City
up
and
achieved with only a
in total indebtedness. New
were
as
concerned, but
were
rear
These
question but what
no
deposit banks back in the saddle again with the New York
City member institutions holding the whip hand once more.
The
reserve
continued
service
banks just beat them to the
punch in the purchase of this obliga¬
tion.
The 2%% due
reserve
was
rates
new
Improvements continued
The 2%% due
1955/60, according to the records, appealed most in 1951
the
banks
rriade
were
2%% due 1960/65 and then the 2%% due 1958/63.
reserve
inadequate earnings, the Central's board of
a
dividend of 50 cents per share, which
V was paid Jan. 15, 1952, to stockholders of record Dec. 20,
1951.V The necessity of maintaining sufficient cash with
which to meet continuing payments for essential improve¬
ments precluded the declaring of a larger dividend.
directors voted
Exempts Bought Heavily
prominent purchases
1951, .aside from
There
The
1, 1951.
income
From these
Partial
troactive to Jan.
the Commission is
factors
represents a
V
-
two
share, in 1950. The 1951 show¬
ing represents a profit of only 1.8 cents on eacli dollar of
total revenues, while net railway operating income for the
$18,315,170,
cent
the buyers of the other restricted bonds.
these
Mn 1951 declined to $14,718,720,
coming eligible restricted'
Government investment accounts and
of operation.
With
heavy>
were
railroads for this service.
ture
Government investment
accounts, the Federal Reserve Banks
and other investors were the main
buyers of the Treasury obliga¬
tions which
yard
performance by
the
were
'
.
were
is increased
pay
Recognizing the increased costs borne by the railroads in
the transportation and handling of mail, the ICC in
November prescribed increased rates of payment to the
toll
throughout the country hit the Central particularly hard.
More than a dozen of our most important switching cen¬
these institutions... Fire and
casualty companies were likewise on
the purchase side as far as
Treasury issues were concerned in 1951.
With
takes revenue
The Jan. 30-Feb. 8 strike of
buyers of the ineligible obliga¬
per cent. Hearings and arguments were com¬
pleted Feb. 29, 1952, and the Commission's decision is
awaited. Meanwhile, the need for permanent relief from
the lag between rising costs and compensatory rales has
received Congressional attention with the introduction
early this year of legislation directed to that end.
Mail
fully reflect the benefit of these advances.
was
tions, with the increase in deposits, that
the full 15
major adverse factors, the year's financial outcome
not
Strike
the heavy liquidation of the ineligible bonds by
life insurance companies in 1951.
They were the principal sellers
of Treasury bonds last year.
«
October the railroads reinstituted their request for
In
mixed picture for the Central,
a
long-term' implications
the results
bit
a
of 1951 form
events
with
January,
was
increases.
above
the
As
level
freight
costs
rates
rate
a
into 1952
Granted a realistic correlation
equitable adjustment of
no
drastic further inflation of
expenses,
divisions,
is
revenues.
high.
fair national
1952 outlook
even
cut
further labor difficulties, and
or
toward
and
already
side, the Central's traffic volume in
continued
progress
transportation policy, the Central's
promising and long-range prospects
are
brighter.
in
September, 1949. The Commission, in a
.effective in late August, granted less than half
G. Metzman
'
the increase sought.
March 20, 1952
President
4
The Commercial and Financial Chronicle
(1716)
.
.
Thursday, April 24, 1952
.
Canadian Operations
Continued
Canadian Securities
The
By WILLIAM J. McKAY
jrom page 2
Canadian prosaccompanied by a rapid
population growth, has led
The
postwar
te in
provide for its rapid
population growth and the main¬
tenance of high living standards
is indicated by the decision to go
speculation regarding the fugross national income of the along alone with the long contem¬
ountry.
This is important be- plated St. Lawrence River Project.
re
ause
an
increase in the so-called
product,"
national
gross
with
ensurate
com-
population
New York State has thus far failed
to
partnership
several
erity,
drilling operations.
into
enter
cooperative
a
ar¬
rangement to carry out the proj¬
of
of
and
substantial
a
por¬
stock in 1951,
capitalization has be¬
stabilized
more
the
and
amount of
potential dilution from
converting the $1.10 second pre¬
ferred stock is relatively small.
Dividends
the
on
stock
common
is essential to mainte- ect, and Congress has failed, de¬ at the present $1.20 annual rate
ance
of prevailing standards of spite
years
of importuning,
to appear secure.
The accelerated
ving, and in order to raise the enact legislation for this purpose. drilling program may preclude an
ving standards of the general Only last week, President Truman early increase' in disbursements,
ublic, there must be, as a rule, gave the O. K. to Canada to in¬ but the enlarged earning poten¬
ssuming an equitable distribution augurate the vast undertaking on tial over early future years has
f income, a relative increase in its own account.
favorable implications. Since the
e "gross national
product."
The St. Lawrence River Project company is now in a position to
rowth,
According
ilbert
of involves both
an* estimate
to
rease
Jackson, a Toronto econCanada now needs an inin gross national product
f 4%
per year,
mist,
compounded
an-
seaway and power
a
development.
that
evidence
As
invest
20%
her
of
gross
ture, the issue may be considered
attractively
is
afoot
levels
the project a plan
incorporate a Crown
to
the stretch between Montreal
and
Prescott, which has not been im¬
ep
proved
product each year and
the rate of corporate and
ersonal saving.
"Do
this, and we double the
hysical volume of Canada's total
at the rate of
utput
once
18
instead of
s
have done in the past two
we
once
in 23
in
ears,
years,
the fu¬
into
inaugurate
ational
up
growth trend
impressively
to
to keep up
ould
rather
the Canadian Government intends
with the na- company for building it. The ac¬
on's growth in population and tual
project does not look too
great either in dollars or engineer¬
pital investment.
In
Mr.
Jackson's opinion,
to ing magnitudes as things go these
icrease the gross national proddays. Below Montreal there is a
ct by the required 4%, Canada 80-foot draft, a 14-foot draft in
ually,
extend i.ts indicated
since
1900,
and
25-foot
a
priced
(around
22)
current
at
with
regard
earnings and yield and offering
to
above average
attraction for hold¬
at this time.
ing
Acreage and Well Locations
At the end of
1951, Sunray had
of 1,639,188 undeveloped
total
a
under lease in 22
in Los
Angeles County is the most
Mr.
Jackson
declared.
wells in this field last year.
Com¬
efficient machines.
to
"But
part of
e resulting benefits in the form
more leisure—that is by short¬
ing
our average
work week and
ducing the number of
man hours
the result, the
ysical volume of our production
man
r
year.
r man year
t of
on
the
Canadian
per
year."
authorities
in view the further exploitaof
Canada's
vast natural
re-
Bay Field and estimates potential
production there within the next
three years of around 10,000 bar¬
important tests in the Fort St.
assuming no further John area of Northeastern British
Columbia.
Sunray also owns a
tightening of pipe supplies.
33^% direct interest in a drilling
Refining
estimated
1949
in
of Transport
the
cost
formerly with Hopkins, HarCo. and Pacific Coast Se¬
curities
he
Company.
thereto
Prior
In
the
Williston
Basin
In the
Island
area,
Redfish
oil
field
in
portant oil company has brought
in a promising oil well.
A dis¬
well
covery
Christmas
Sales Manager for
was
brought
in
Eve
ducted
his
Los
in
ness
investment
own
Angeles
busi¬
and
New
Charles
two
best
cated
on
area.
7,500
a
Lake
of the
one
discoveries
in that
year
York City.
last
Parish
near
said to be
was
in
Acadia
Gross,
Rogers & Co. and in the past con¬ in Southern Louisiana
made
last
This well, lo¬
block, has
acre
three pay zones.
With Paul
Rudolph Co.
SAN
FRANCISCO, Calif.—Paul
Magoon has become affiliated
M.
Paul
C.
Rudolph
&
In Redfish Bay,
Texas,
(Special to The Financial Chronicle)
Com¬
four
It
in
will
this
be
area
of
FRANCISCO,. Calif. — L.
Wing is now associated
Schwabacher
Street
members
of
the
&
Co.,
600
San Francisco Stock
York
and
Exchanges.
around
eventually
oil
and
Santa
other
and
products
run
at
activity,
to
vestments
13,555,000 barrels, which com¬
pared with 11,317,000 barrels in
1950.
Refinery runs averaging
37,000 barrels daily in 1951 rep¬
resented a 6,000 barrel per day
increase
over
1950.
The
acquired
Duncan
late
government at
in
a
1947
cost of
over
the
next
three
HUDSON'S BAY COMPANY
This
company,
2nd, 1670,
may
incorporated
be the oldest
on
May
commer¬
cial company in the world. Because of
its
diversified
operations,
including
NY
oil development in Western Canada,
trading and retailing, a continued rec¬
ord of
favourable
earnings may be
anticipated.
The
1-1045
stock
is
particularly attractive
looking for long term
capital appreciation.
to
New York 5,N.V.
Field
in
West
Central
Texas, of
the remaining 9,000 acres are un-
Twenty producing wells
brought in in this field.
been
Production
officials believe pos¬
sibilities in this field look better
than they did a year ago;
BmIob 0, Man.
31, 1951, Sunray had
active producing oil
and gas wells and 3,330 net active
5,600
gross
producing oil and gas wells. In
1951 Sunray participated in the
drilling of 315 gross wells or 204
net
wells.
During the first six
1952, company's budget
drilling 190 gross wells
months of
calls
and
for
141.3ranet wells.
advantageous acqui¬
oil throughput
and earnings of the refining divi¬
a
very
sition.
Both crude
Details
on
the
in
sizable
of Pacific Petroleums.
River Natural
Canadian
The
Gas
in¬
stocks
common
Ltd., Peace
Company and
Oil
Atlantic
Company.
of
importance
Sunray's
holdings in Canada will become
more
pronounced in the future
authorities
Canadian
that
now
Inquiries Invited
Kippen & Company, Inc.
Securities
Established
1922
Production
major
our
Both
own
Pacific
Sunray Oil and
will
Petroleums
interest
would
in
cities
Northwest.
Pacific
have
an
this
in
pipeline which
to offer great po¬
appear
for the future.
tentials
Earnings
The
company's earnings report
for 1951 was by far the best in
its history, results amounting to
$2.23 per share compared with
$2.13 per share in 1950. Net earn¬
19% over 1950. The
ings
were up
most active
Sunray's
did not take
place soon enough last year to
keep the company out of the
excess profits tax bracket and it
was therefore subject to
an EPT
phase
of
1951 drilling program
recently
announced
of $2,243,000. The company's EPT
building a new 28,000
credit base is estimated at $13,barrel per stream
day gasoline
refinery at Corpus Christi, Texas. 250,000. From an oil accounting
The first preliminary construction standpoint, it should be noted that
reported earnings are
work will start immediately on Sunray's
the plant site about seven miles not strictly comparable with those
of most oil companies and are on
west of the port of Corpus Christi
where Sunray operates deep wa¬
ter terminal facilities in connec¬
conservative
the
side
of
because
much
higher per barrel depletion
tion
with
its
coastal
pipeline charges resulting from the higher
cost value at which a large pro¬
operations. The project is sched¬
of its oil reserves are
uled for completion in the late portion
summer
carried
of 1953.
Reserves
;
continues
Sunray
reserves
in
to
add
to
of
its
the
drilling
upon
celerated
excess
its books.
on
Based
under way,
in
its
company's
program
success
new reserves
ac¬
now
in bringing
and indications of
production.
On the basis of a re¬ higher earnings from its expand¬
cently completed appraisal made ing refinery and other processing
independ¬ operations, it is
believed that
ent oil and gas engineer, Sunray earnings in 1952 will be able to
added approximately 40 million rise further and should be less
barrels proven crude reserves in vulnerable to excess profits taxes.
1951
excluding
California,
the
for the company by an
most
Finances
important of which additions
from
the
Company's financial position at
following fields:
Spraberry Trend, 13 million bar¬ the end of 1951 was the strongest
rels; Redfish, 9,700,000 barrels; in history with a current ratio
Mustang Island, 3,500,000 barrels; of 3:1.
Capital expenditures in
Western Kansas, 3,500,000 barrels; 1951 amounted to around $30 mil¬
Oklahoma, 2,500,000 barrels, and lion and for the first half of 1952
Louisiana, 900,000 barrels. Since this item has been budgeted at
Sunray produced nearly 27 mil¬ around
$20 million.
Dividends
lion barrels of crude in 1951, the have been paid each year since
net gain to reserves amounted to 1936 and in 1951 common share¬
around 13 million barrels. Thus holders received about 48% of the
came
it is estimated that present total
reserves
barrels
company's net income. Company's
approximate 327 finances
although
it
was
appear
care
of
and
unlike
adequate to take
plans
1951, Sunray produced 26,without recourse to new financ¬
lion barrels .could be conserva¬
632,000 net barrels of oil for a
tively added. With regard to nat¬ ing. Sunray appears to be in the
daily net average of 73,000 bar¬
rels of crude which represented ural gas reserves, the petroleum early stages of important growth
stated that an additional 7-8 mil¬
an
increase of 5%
duction
■■
Vancouver and then southward to
for
million
In
request.
Sunray
plans
proven
investors
Investment
filly CongreaK Street
has
Sunray
a
crude
As of Dec.
WORTH 4-2400
In addition to this
State of Texas.
these refineries last year amounted
drilled
which 5,000 acres are proven and
now
Two Wall Street
is being
in the
area
of
Southeastern
Allen, Flathead
Maria, Calif., British Columbia. The rate of ex¬
which have a combined daily ca¬ ploration and drilling in Alberta
pacity of 45,000 barrels. Crude is now second only to that in the
Okla.,
100
Company has about 14,000 acres
leases in the Spraberry Trend
Montgomery, have
New
that
v
proven.
at
gas well and
barges drilling.
one
on
estimated
is
wells
Montgomery Street.
rigs
Corpus Christi,
brought in
has
company
19 oil wells and
has
With Schwabacher & Co.
Market
incorporated
acres
eries located at Duncan and
refinery,
at
bach &
with
A. E. Ames & Co.
well
on
to be
SAN
CANADIAN STOCKS
drilled
Bay-Mustang
General
The
removed.
be
Stuart
Corporation
where a
60,000
program
Company operates three refin¬
from the
1912.
(Special to The Financial Chronicle)
Municipal
and
others, is
specifically interested in a large
block of acreage now undergoing
rels per day,
states, and
.years.
Provincial
Sunray, with a di¬
with Fa-
of 20-25%
Petroleums
Southeast section.
should
pany, 127
Government
cific
dian Department
finished in
was
It is this 14-foot bottleneck which
with
CANADIAN BONDS
was
Engineering branch of the Cana¬
the Welland
increased at the rate
2%, but of \lk%
That
ve
In
it
Sunray has leases on more than
200,000 acres in the South and
Ship Canal
over
we
take
1951
$5,100,000 (cost $20 million) has have approved the long-standing
daily capacity of 25,000 barrels proposal made by the West Coast
of crude, plus 7,000 barrels of ex¬ Transmission
Company to con¬
cess
gas oil and this has proven struct a gas pipeline extending to
draft westward
was
chose
of
end
reservations.
rect interest
barrels per day from
Edgerton, Lofgren
ore
the
At
is now obtaining about 1,500
the Redfish
pany
Francis V. Nixon With
anadians
tion.
latter
$350 Corpus Christi Bay, Texas, Sunray
has some 8,000 acres under lease sion have shown steady growth
million, not the $1 billion which
The 3% average annual increase
in recent years, reaching a new
opponents mention.
In its fast where it is carrying on a highly
l the physical volume of Canada's
expanding economy, it is con¬ satisfactory drilling program. In high in 1951.
tal output during the past genAt Snyder, Scurry County, Tex.,
tended, Canada cannot afford not Canada, company continues ac¬
ration, in the view of Mr. Jack- to
tive in its search for oil and gas
make this seaway available at
Sunray operates the largest field
n,
required
that
Canadians the earliest
reserves
in
the
western
LPG
extraction
prov¬
plant
in
the
possible moment.
ould invest about 15% of the
inces of that country.
world
from
the
standpoint
of
ross national product. "As a matIn
Alabama,
Sunray
holds product output as related to cubic
r of record the figure was about
about 4,500 acres under lease near feet of natural gas handled. The
Mr. Jackson stated, adding
the recent Humble discovery well plant is operated in partnership
at the physical volume of proand while no drilling has been with 35 companies and approxi¬
uction per man hour increased
undertaken as yet, company be¬ mately
60
individuals
owning
the period from 1929 at an anlieves its holdings there may be leases in the Kelley-Snyder area
(Special to The Financial Chronicle)
ual rate of 2%. This was mainly
the
"play."
Sunray has ac¬ which is a highly productive area
LOS ANGELES, Calif.—Francis in
e
result of technological
imhaving close to 1,000 producing
V. Nixon has become associated quired approximately 12,000 acres
rovement, accompanied by
Northern
Sunray's net interest in
Mississippi in the wells.
with Edgerton, Lofgren & Co., 609 in
reater investment in modern and
this project is 7.31%.
South Grand Avenue. Mr. Nixon general area where another im¬
ecades,"
the
oil field participating in exploration and
has
been
described
as
literally development activity on approxi¬
"standing on end"—with oil hori¬ mately 6 million acres of oil and
zons
unlimited and the pay zone gas
leases
and
drilling rights,
running downward to "no one as Sunray's net interest being 311,123
yet
knows
where."
Company acres of oil and gas leases and
brought in eight new producing 1,180,185 acres of crown drilling
last year production was obtained
in 15 states and in Canada.
acres
The
important.
preferred
company's
come
in
interests
retirement
the
Following
conversion
tion
Dominion
of
Canada,
principally Alberta, Sunray has
widely diversified interests and
is
represented in many of the
areas
now
undergoing explora¬
Security I Like Best
direct
to
sources
In
states
was
and
over
obtained
1950. Pro¬
from
Canada, ' with
13
Texas,
607 St. James St., W„ Montreal, P. Q.
California and Kansas being the 3
Telephone UNiversity 6-2463
biggest producing states. In Cali¬
fornia, the Newhall-Potrero Field
engineer referred to above esti¬
mates
c.f.
in
Sunray added
1951, making
1% trillin
c.
end of 1951.
present expansion
a
number
100 billion companies in this field,
a
total of
f. gas reserves at the
be
a
it
is
other
of
seems
to
long way from maturity and
for
thi£
reason
that
the stock is so interesting.
I
feel
(1717)
liUWvJMlUEJJItt
MEMBERS
IRLOT
OF
THE SECURITY TRADERS ASSOCIATION
OF NEW YORK, INC.
16th ANNUAL
V
AT WALDORF-ASTORIA
DINNER
APRIL 18,
1952
President
Second
First
Treasurer
Vice-President
Secretary
Vice-President
Harry L. Arnold
Goldman, Sachs
&
Co.
George V. Hunt
John
J.
Meyers, Jr.
Gordon Graves & Co.
Charles
M.
Laurence
Starkweather
Zingraf
M.
&
Co.
Marks
Alfred F. Tisch
Fitzgerald &
Company, Inc.
& Co.
DIRECTORS
Leslie J. Barbier
Joseph C. Eagan
Frank
John
M. Mayer
Merrill Lynch, Pierce,
Fenner
&
Beane
John
C.
Masterson
&
Ingalls & Snyder
Co.
F. McLaughlin
McLaughlin,
Reuss
A Co.
;r^rr^f^ty^r^(^r^»^r^ry^^^ry^r7^r^r?s\ifi«?? ffir^rffii^rygflrTsfflrrSYifys'
John
A.
Edward J. Kelly
S. French
C. Allyn
Inc.
Daniel
G.
Carl M.
& Co.,
Rhoades
rrsvi trsvi
Nathan A. Krumholz
Siegel & Co.
Co.
McGinnis & Company
Co.
isxl fyg?i rrsvi rysvi fyavi rra?? iYSv; rravi
&
Henry Oetjen
Mullin
Tucker, Anthony
&
Loeb,
Lewis H. Serlen
J osephthal
&
Co.
25
26
(1718)
The Commercial and Financial Chronicle
UNDERWRITERS
.
.
.
Thursday, April 24, 1952
DEALERS
•
Listed and Unlisted Securities
Dealer Inquiries Invited
on
Pacific Coast and Hawaiian Securities
Arthur Heine, Burton, Cluett & Dana;
John D. Hines, and Paul Guy
Ed Peene, Charles Bruggeman,
of Dean Witter & Co.
Direct Private Wires
Dean Witter
a
Co.
MEMBERS
NEW YORK STOCK
SAN
FRANCISCO
EXCHANGE
STOCK
NEW
EXCHANGE
HONOLULU STOCK EXCHANGE
and other
NEW YORK
CHICAGO
MIDWEST STOCK EXCHANGE
leading Security and Commodity Exchanges
SAN FRANCISCO
BOSTON
YORK CURB EXCHANGE
LOS ANGELES STOCK EXCHANGE
LOS ANGELES
SEATTLE
PORTLAND
What Is Your Trading Problem
HONOLULU
f:
Len
&
Regardless of your Over-Therequirements the
chances are more than likely we
can be of service to
you in your
business. Our large and experi¬
enced Trading Departments deal
in a long list of industrial, utility,
railroad, insurance and natural
gas transmission stocks. We are
also active in preferred stocks,
Counter
bank and
insurance issues
and
vice
on
firm
providing fast ser¬
quotations, executions
to
takes
of interest
in
to
thus
are
position to provide them
ready markets for liqui¬
dation and a steady supply of
a
with
securities
for
their
customers.
Our
large retail coverage enables
us
to
place large blocks with¬
out
disturbing existing street
markets.
are
and the "feel of the market"
are
investment dealers. We
Inquiries from out-of-town firms
foreign dollar bonds.
In addition
situations that
Booth, George D. B. Bonbright & Co., Rochester; Reg Knapp, Wertheim
Co.; Edwin J. Markham, Wertheim & Co.; Joe Kane, Dominick & Dominick
welcomed. Tell
us
ing requirements and
our
best
to
meet
trad¬
will do
your
we
them. Address
Mr. Alfred
our
positions in special
Dealer
J. Stalker, Manager,
Relations Department.
Kidder, Peabody & Co.
ESTABLISHED
NEW YORK
•
Sales and Branch
Newport
1865
Members New York Stock and Curb
BOSTON. PHILADELPHIA. CHICAGO
Offices:
Providence
Correspondent Wires
to:
Albany
Reading
Atlanta
LISTED
&
Altoona
Scranton
Buffalo
Dallas
Exchanges
Members Boston and Midwest Stock
Baltimore
Springfield
Los
Angeles
UNLISTED
Exchange
Henry
J.
Securities
Richter,
Scherch,
Richter
Company,
St.
Louis;
Donald
Inc.; Fred Barton, Eastman, Dillon & Co.
Lowell
Taunton
Seattle
New Bedford
Wilkes-Barre
Washington, D. C.
ATLANTA
BOSTON
PERSHING & CO.
CHICAGO
SECURITIES
DETROIT
HARTFORD
Members
New York Stock
PITTSBURGH
Exchange
New York Curb Exchange
Chicago Board of Trade
PROVIDENCE
ROCHESTER
Teletype NY 1-750
TOLEDO
Telephone WOrth 4-4300
TORONTO
WHEELING
YOUNGSTOWN
120
C.
Cook,
& Exchange Commission; John S. French, A. C.
Allyn and Company,
BROADWAY, NEW YORK 5, N. Y.
(1719)
Francis J.
T.
F.
Cunningham, Kidder, Peabody & Co.; Randy Moore, Goldman, Sachs & Co., Chicago;
Lou Bumsted, Kidder, Peabody & Co.
Mackessy, Abbott, Proctor & Paine; Theodore R. Young, Theodore Young & Co.; Milt Isaacs,
& McDowell, Chicago; Joseph E. Masek, M. H. Bishop & Co., Minneapolis
Walter
Todd,
B.
A. Gordon
John
R.
Straus, Blosser
V. Christie & Co., Houston, Tex.; Joseph V. McManus, Joseph McManus &
Crockett, Crockett & Co., Houston; Graham Walker, Joseph McManus & Co.
SPOKANE
BOSTON
MINNEAPOLIS
I
SPRINGFIELD]
DETROIT
ELAND^i
EUREKA
SACRAMENTO
CHICAGO
PITTSBURGH
J
PHILADELPHIA
{OAKLAND
SAN
INDIANAPOLIS
FRANCISCO
• SAN JOSE
V
•FRESNO
•
LOUISVILLE
PASADENA
Blyth & Co., Inc.
|) LOS ANGELES
PRIVATE WIRE
SYSTEM
SAN
DIEGO
Blyth S. Co., Inc.
Underwriters and
NATIONWIDE
Co.;
Chapin, Jr., Kidder, Peabody & Co., New York; George M. Becker, Kidder, Peabody & Co.
New York; A1 Hutchinson, Kidder, Peabody & Co., Philadelphia
SEATTLE
,
27
Distri
of Securities
28
(1720)
Members 3\[ew
Co.
&
Wertheim
York Slock Exchange
'
Bill
McCullen, Hendricks & Eastwood, Inc.,
guest;
NEW
YORK
\
.
>
'
*
'
w\
Stanley Roggenburg,
5
Joseph Kirk, Delafield & Delafield; Joe Harris, Harris & Company;
Seiler, Bache & Co.; Eddie Amendola, Bache & Co.;
Jim Flood, Bache & Co.
Trading Markets Maintained in
i
Philadelphia; Abner Goldstone,
Mort Cayne, Cayne & Co., Cleveland;
Roggenburg & Co.
V'\
•
,
'
%.>•» S
,
1
'' ;
|
rl
Jt
Morris
ft* ■
Corporate and Municipal Bonds
Investment Preferred
Union Securities
65
Stocks
Corporation
Broadway, New York 6
Tom
.
BOSTON
HARTFORD
BUFFALO
•
•
CLEVELAND
•
PHILADELPHIA
•
Greenberg, C. E. Unterberg & Co.; John E. Kassebaum, Van Alstyne, Noel
& Co.; Joseph C. Eagan, Frank C. Masterson & Co.;
Leslie Barbier, Ingalls & Snyder
SYRACUSE
PRIVATE
WIRES
TO
♦
Over the
Troster, Singer & Co.
Members New York
Security Dealers Association
National Association
of Securities Dealers
CLEVELAND
DETROIT
LOS
ANGELES
PITTSBURGH
74
TRINITY
NEW YORK
PLACE
6, N. Y.
PHILADELPHIA
ST.
LOUIS
DENVER
Telephone HAnover 2-2400
Teletype NY 1-376; 377; 378
Volume 175
Number 5110
.
.
.
(1721)
The Commercial and Financial Chronicle
For
financial institutions
FIRM
Jay L. Quigley, Quigley & Co., Inc., Cleveland; Ed Harding, Pennsylvania
Railroad; Hank Serlen, Josephthal & Co.; Clifton Smith,
MARKETS
TRADING
Francis I. du Pont & Co.
PARI. MARKS & P.O. INC.
FOREIGN SECURITIES SPECIALISTS
50 BROAD STREET •
NEW YORK 4, N. Y.
Primary Trading Markets
•
B.
Natural Gas Issues
•
Smith, Pershing & Co.; G. Harold Noke, Francis I. du Pont & Co.;
Securities Corporation; Lester J.
Thorsen, Glore, Forgan & Co., Chicago
Walter F. Saunders, Dominion
•
Public Utilities
•
Railroad Securities
•
Harold
Industrial Stocks
Bank & Insurance
•
Investment Trust Shares
•
New
England Securities
Coast-to-Coast Wire Service through
Paul H, Davis & Co.,
direct private lines to
Chicago, Morgan & Co., Los Angeles, and
Ball, Burge & Kraus, Cleveland, Ohio
J. Arthur Warner & Co.
Incorporated
Broadway, New York 5
120
•'
1
'
••
v'
'
"7 '
-
TWX-NY 1-40
Direct private
Ben
Brooks, Henry B. Warner &
Co., Inc., Philadelphia; Herb Singer, Singer,
61
BROADWAY
N. Y.
Orders Executed
or
■
-v. 7
■
telephones between New York, Philadelphia, Boston,
CANADIAN STOCK SPECIALISTS
Rates
89 Devonshire St., Boston 9
Providence, Portland, Me., and Jersey City,
Bean & Mackie, Inc.; Johnnie Jennings, Reynolds & Co., Philadelphia;
John H. Stevenson, Singer, Bean & Mackie, Inc.
NEW YORK 6,
7
Telephone LAfayette 3-3300
TWX-BS 208-9
Telephone WOrth 4-2300
on
all Canadian Exchanges at Regular
Traded in New York in United States
Hartford,
N. J.
BRANCHES
Commission
Funds
Toronto, Ontario
Royal Bank Building
Telephone
WHitehall
CHARLES KING & CO.
4-8980
MEMBERS
Teletype
NY
New
1
-
Ycrk
Stock
^w
York
Curb
Exchange
Montreal
1-142
Direct
Private Wires
|
•
Toronto Stock Exchange
Montreal Stock Exchange
Exchange
Curb
Connect New York
Aldred
Market
With Offices in Toronto and
Montreal, Quebec
Montreal
Building
29
30
(1722)
The Commercial and Financial Chronicle
Joseph
.
.
Thursday, April 24, 1952
.
McManus & Co.
MEMBERS
New York Stock
Exchange
Midwest
—
New York Curb Exchange
Stock
Exchange
39 Broadway
We
are
New York 6, N. Y.
pleased to
that
announce
our
private wire system to
HOUSTON
CLEVELAND
Herb Nickel, Grace National Bank of New York; Ira Krupnick, A?tna Securities
•
Crockett & Co.
Corp.; Shelby Cullom Davis, Shelby Cullom Davis <ft Co.
Wm. J. Mericka & Co.
Incorporated
HARRISBURG
Blair F.
will be
expanded
-
PITTSBURGH
Claybaugh & Co.
on or
about May 1st to include:
TORONTO
Matthews &
CHICAGO
McMaster Hutchinson & Co.
Company
NEW ORLEANS
T. J. Feibleman &
Bill
Mulholland,
John F. McLaughlin, and Tom
McLaughlin, Reuss & Co.
Active
Feeley, all of
Aeronca
SAN ANTONIO
Company
Lentz, Newton & Co.
Trading Markets
Mfg. Corp.
Associated
Reeves Soundcraft
Development & Research
Corp.
Skiatron
Corp.
Buckeye Incubator Co.
General Aviation
Corp.
Electronics & Television
Stanwood Oil
Equipment Co.
Corp.
Sterling Oil of Oklahoma, Inc.
Leidy Prospecting, Inc., Old & New
West End Chemical Co.
F. II. McGraw & Co.
Western Gold
Listed
Columbia
on
the New York Curb
Mines, Inc.
Exchange
Machinery & Engineering Corp.
National Phoenix Securities Co.
We trade
Kobbd
actively over-the-counter
&
Company
INCORPORATED
Telephone
BARCLAY
Edward
J.
McCormack, McLaughlin, Reuss & Co.; Don Cronin, R.
Pressprich & Co.; Frank J. Brady, McLaughlin, Reuss & Co.
7-2663
Members National Association of Securities Dealers, Inc.
A.
55 Liberty Street.
New York 5, N. Y.
W.
HILL, THOMPSON & CO., Inc
Underwriters and Distributors
Buyers of Blocks of Stock
T.
New
&
T. Teletype
York
1-277
Number 5110
Volume 175
.
.
.
Joseph Janareli; Walter Mason, Scctt, Horner & Mason, Inc., Lynchburg, Va.;
Ira Haupt & Co.; Ben Van Keegan, Frank C. Masterson & Co.
Ken
Howard, Frank Walsh,
J. A.
Lawrence P. Sheehan, and Joseph
I'togle & Co., New York City
Harry Peiser,
Monahan, all
31
(1723)
The Commercial and Financial Chronicle
Ben
Shankman, Harry Zeeman, Fred Loeliger, Bob Boas,
Jack Murphy,
of
Andrew
and Bill Springer all of Carl Marks &
Co. Inc.
Hornblower & Weeks, Philadelphia; Fred Burdorf, Hornblower <6 Weeks, New York
Weeks, New York City; Tom Jones, Hornblower & Weeks,
City;
Starace, Hornblower &
New
York
City
TRADING MARKETS
Call
JANNEY /orAmerican
Bank and Insurance Stocks
Browne &
active
Pennsylvania Tax Free
trading
Industrials
markets
Rails
Utilities
Common and Preferred Shares
Optical
Sharpe Mfg.
Collyer Insulated Wire
Dewey & Almy Chemical
Grinnell Corp.
Kendall Co.
Ludlow Mfg. & Sales
Minute Maid
New York Telephone
Sacco Lowell Shops
Bell Teletype System
JANNEY & CO.
Southern Advance Bag
RIttenhouse 6-7700
WOrth 4-2140
Sprague Electric
1529 Walnut
Street, Philadelphia 2
PH 80
Since
1907—Underwriters,
Distributors, Dealers, Brokers
West Virginia Water
AND
Other New England
Securities
STOCK 6> BOND
growing family (the fifth largest group of
corporation stockholders in the country) benefits
in
many ways
Utility Stocks
from the phenomenal growth of
the Bank of America and the great state
Send for
PRIMARY TRADING MARKETS
IN
BROKERAGE SERVICE
This
newly published, graphically illustrated
circular. It
We
it serves.
gives facts not generally known.
actively buy
and sell this stock.
for Banks, Brokers and Dealers
Direct Private Telephone
To New York
CAnal 6-1613
First California Company
Incorporated
INVESTMENT
Hardy & Co.
Members
Members
30 Broad
New
New
St.
Telephone DIgby 4-7800
York
York
Stock
Exchange
Curb
Exchange
New York 4
Teletype NY 1-733
J. B. MAGU1RE
&
San Francisco Stock
CO., INC.
300
31 Milk
Street, Boston 9
Exchange
Montgomery Street
Los Angeles Stock Exchange
647 South Sprinn Street
SAN FRANCISCO
Members
of National Association
of Securities Dealers
SECURITIES
Members
24
OFFICES
SERVING
LOS ANGELES
Teletype LA 533
Teletype SF 885
INVESTORS IN
CALIFORNIA AND NEVADA
32
The Commercial and Financial Chronicle
(1724)
.
.
.
Thursday, April 24, 1952
CANADIAN SECURITIES
Govt, of Canada Internals
Canadian
Public
Oil, Mining
Utility & Industrial
Stocks & Bonds
Goodbody & Co.
ESTABLISHED
1391
MEMBERS
New
Other
115
Stock Exchange
York
Principal
and
Exchanges
105 WEST ADAMS
BROADWAY
New York
McCabe, Kugel, Stone & Co., Inc.; William E. Sullivan, Bank of the Manhattan Co.; John H.
Kugel, Kugel, Stone & Co., Inc.; Frank Mullen, Greater New York Savings Bank;
A. Joel Canter, Sartorius & Co.
Tel.: CE 6-8900
BA 7-0100
Tel.:
J. P.
ST.
Chicago 3, 111.
6, N. Y.
Direct Wire to Grecnshields & Co.,
Montreal
and Milner, Ross & Co., Toronto
&
Listed
Unlisted
Securities
Hoy Meyer, Gruntal & Co.; C. B. O'Keefe, First National Bank of Chicago (New York City); E. J.
Michael J. Heaney &
Members New York Curb
O'Connell, C. F. Childs and Company; H. R. Gesell, Kugel, Stone & Co., Inc.;
John J. Carleton, First National Bank of Chicago (New York City)
Co
Exchange
New York 5, N. Y
One Wall Street
Telephone: WHitehall 4-2484
Our
the
with
identity
many years
qualifies
following
us as
securities
specialists in this
for
group.
Arden Farms Co. Com. & Pfd.
Arizona Public Service Com. & Pfds.
Bareco Oil Co. Common
Bullocks Inc. Common
California Electric Power
2l/2% & 3% Pfds.
Capitol Records Inc. Common
David R.
Mitchell, Hill, Thompson & Co., Inc.; John J. O'Kane, Jr., John J. O'Kane, Jr., & Co.; Harry
Miller, Nugent & Igoe, East Orange, N. J.; Charles M. Zingraf, Laurence M. Marks
& Co.; William M. Rosenbaum, Wm. M. Rosenbaum & Co.
D.
Central Public
Utility Deb. 5V£s, 1952
Disney (Walt) Productions Com. & 4s, 1960
Fullerton Oil Co.
Interstate Baking Corp.
Com. & Pfd.
Plomb Tool Co. Common
Plymouth Rubber Co., Inc. Common
PRIVATE WIRES
TO
Puget Sound Power & Light Co. Com.
Remington Arms Co., Inc. Common
Seattle Gas
Universal
Pictures
Common
Co.
Co., Inc. Warrants
Yuba Consolidated Gold
Hendricks & Eastwood, Inc.
Philadelphia
Fields, Inc. Com.
G. A. Saxton
McAndrew & Co., Inc.
Statistical
Information
on
Request
ERNST & CO.
Members
and
New
York
Stock Exchange
other leading
120
New
York Curb Exchange
Security and Commodity Exchanges
San Francisco
Akin-Lambert Co., Inc.
Los
Angeles
s
Co., Inc.
Teletype NY 1-609
70 Pine
St., New York 5,
^WHitehall 4-4970
Broadway, New York 5, N. Y.
231 So. LaSalle St.,
Private
Wires
to
Los
Chicago 4, 111.
Angeles
and
Chicago
Trading Markets in Public Utility, Natural Gas and Industrial Securities
Number 5110
Volume 175
..
.
(1725)
The Commercial and Financial Chronicle
i
Founded 1851
UNDERWRITERS
DISTRIBUTORS
-
DEALERS
-
Industrial, Public Utility and Railroad Securities
State and
Municipal Bonds
'
'
'
,.
ESTABROOK
Arnold, Goldman, Sachs & Co.; Bill Wittich, Grimm & Co.; Harry
Co., Incorporated; Lex Jolley, Johnson, Lane, Space & Co.,
Harry
R. Amott, Amott, Baker &
Inc., Atlanta
.
&
•
■
i
CO.
MEMBERS
NEW
YORK
Associate
40 Wall
AND
BOSTON
Member New
St., NEW YORK 5
HARTFORD
f
STOCK
York Curb
EXCHANGES
Exchange
IS State St., BOSTON 9, MASS.
-
PROVIDENCE
•
SPRINGFIELD
INDUSTRIAL, PUBLIC UTILITY, RAILROAD
and
Gus
MUNICIPAL SECURITIES
Schlosser, Union Securities Corporation; Frank Breen, Schirmer, Atherton & Co., Boston; Lou
: J
Walker, National Quotation Bureau; James B. Maguire, J. B. Maguire <6 Co., Inc.,
Boston; John Hudson, Thayer, Baker & Co., Philadelphia
UNLISTED TRADING DEPARTMENT
Laurence M. Marks & Co.
Members
York Stock
New
New York Curb Exchange
49 Wall
Street, New York 5, New York
Teletype N.Y. 1-344
Telephone HAnover 2-9500
Lehman Brothers; James F. FitzGerald, W. L. Canady &
Harris, Upham & Co.; Jim Campbell, H. C. Wainwright & Co.;
Michael J. Heaney & Co.
Arthur Weigner,
Exchange
(Associate)
Co.; Howard Van Dehsen,
Mike Heaney,
WAVAWAVAVAVe?
RECTORY
DI
AS TRANSFER AGENT
in
STOCK and BOND NOOSES
We
N. Y. AND JERSEY CITY, N. J.
economies
afford
and
other
underwriters, distributors,
advantages to
corporations
and their stockholders.
for
our
State
free booklet setting forth the Current
and
Original Issue
Stock
page
covering
Firm
name
ducted
Street
Federal
of
date
Address,
General
Transfer Tax Rates.
tinder which business is con¬
and
District
of
Write
Incorporated
book containing 7,700
all United States and
Canadian cities.
Listings are arranged
geographically
and
alphabetically, and
are comprehensively detailed:
1,296
listings
established
including
Post
Office
Numbers
Character
Business
of
&
Class
Securities Handled
Names
and
ACALLYN^COMPANY
"Security Dealers of North America9'
•
A
NEW YORK,
OF
of
Partners
Officers.
or
Names
Department Heads
Stock
Exchange
berships
and
Association
Numbers—Private
Phone
Mem¬
A.C.ALLYN & CO.
(including N.A.S.D.)
Phone
Members of
Connec¬
tions—Wire
REGISTRAR AND TRANSFER COMPANY
10 CHURCH
IS EXCHANGE PUCE
STREET
New York 7,
N. Y.
Systems—Teletype Numbers—
Correspondents — Clearance Arrangements.
An ALPHABETICAL ROSTER of all firms
ENTER
25
>ver 50 Years
of Efficient and Economical Service
YOUR
Park
Place
REctor
ORDER TODAY
New
York
7,
N.
Y.
2-9570
egg
*
Midwest Stock Exchange
Exchange (Associate)
feature.
fabrikoid—$10
HERBERT D. SEIBERT & CO., INC.
BErgen 4-8525
BEekman 3-2170
in durable limp
Exchange
New York Curb
which they are located is
another valuable
Bound
Jersey City 2, N. J.
1*99
city in
showing
New York Stock
Chicago
New York
Boston
33
34
The Commercial and Financial Chronicle
(1726)
.
,
.
Thursday, April 24, 1952
REORGANIZATION & "WHEN-ISSUED"
SECURITIES
•
BABY BONDS, SCRIP & RI6HTS
Joscphthal & Co.
MEMBERS
New York Stock
New York Curb Exchange
Commodity Exchange, Inc.
Exchange
Chicago Board of Trade
120 Broadway, New York 5, N. Y.
WOrth
Bell
4-5000
NY 1-319
System Teletype
19 Congress St., Boston 9, Mass.
LAfayette 3-4620
>
Bill
Direct
Telephone to Boeton and Private Wire System
To Correspondents
Kumm, Dunne & Co.; Larry Doyle, Hardy & Co.; John M. Mayer, Merrill Lynch, Pierce, Fenner
& Beane; A. Philip Megna, Francis I. du Pont &
Co.; John Heck
in Principal Cities
Bank & Insurance Stocks
Over-The- Counter
Securities
inquiries invited in all Unlisted Issues
Trading Department, LOUIS A. GIBBS, Manager
Laird, Bissell & Meeds
MEMBERS NEW YORK STOCK EXCHANGE
120
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
DIRECT
Bell Teletype NY 1-124849
WIRE
CONNECTIONS
Schirmer, Atherton & Co.
50
48
Boston, Mass.
WILMINGTON, DEL.
Street
Mitchum, Tully & Company
650 South Spring Street
Main Street
Springfield, Mass.
DU PONT BUILDING
Pearl
Hartford, Conn.
Tifft Brothers
1387
TO
Schirmer, Atherton & Co.
Congress Street
Los
95 ELM
STREET
LINCOLN LIBERTY
NEW HAVEN, CONN.
Mel
Wien, M. S. Wien & Co.; Sam
Robert
Angeles, Calif.
Lombardo, Tellier & Co.; Joe
Franklin, M. S. Wien & Co.
Redinger,
Tellier
&
Co.;
BUILDING
PHILADELPHIA, PA.
Established
1926
Inquiries invited by
Prompt Wire Service to
Western Markets in
SPOKANE
SALT LAKE CITY
DENVER
H.
D.
on
&
CO., Inc.
n,
MEMBERS
New
York Security
Dealers Ass'n
DEALERS AND
ESTABLISHED
Trading Department
Listed
Securities.
KNOX
LOS ANGELES
J. A. HOGLE & CO.
our
Unlisted and Blocks of
149
Telephone
Kmp&ps & Co.
BROADWAY,
WOrth
NEW
YORK
4-26P1
6,
N. Y.
Teletype
NY
BROKERS IN
1915
UNLISTED
50 BROADWAY
NEW YORK 4y
Telephone WHitehall 3-6700
N. Y.
Teletype NY 1-1856
SECURITIES
HAY, FALES & CO.
MEMBERS
NEW YORK STOCK EXCHANGE
NEW YORK CURB EXCHANGE
MEMBERS
SPOKANE STOCK EXCHANGE
SALT LAKE STOCK EXCHANGE
CHICAGO BOARD OP TRADE
NEW
LOS ANGELES STOCK EXCHANGE
COMMODITY
YORK
COTTON EXCHANGE
MIDWEST STOCK EXCHANGE
EXCHANGE, INC.
11
NEW
Broadway
NEW
YORK
YORK
CURB
STOCK
EXCHANGE
EXCHANGE
NEW YORK 4
(Associate)
CHICAGO STOCK EXCHANGE
NEW YORK PRODUCE EXCHANGE
NEW ORLEANS COTTON EXCHANGE
Telephone DIgby 4-1388
Bell System
Teletype NY 1-86
OFFICES
Salt Lake City, Utah
San Diego, California
Los
Angeles, California
Spokane, Washington
Denver, Colorado
Ogden, Utah
Beverly Hills, California
Reno, Nevada
Missoula, Montana
New York, New York
Pocatello, Idaho
Butte, Montana
Riverside, California
Boulder, Colorado
Idaho Palls, Idaho
27 State
Street
BOSTON 9
71
BROADWAY, NEW YORK 6, N. Y.
Telephone CApitol 7-8950
Bell System
Teletype BS 469
Telephone BOwling
Green
9-7026
Teletype NY 1-61
1-333 7
Volume 175
Number 5110
Hal
..
.
(1727)
The Commercial and Financial Chronicle
Jim
Murphy and Ed Beck of the Commercial and Financial Chronicle
Isadore
A. Stern, Hunter Securities Corporation;
Richard Wright, Hunter Securities Corporation;
Love, George E. Snyder & Co., Philadelphia; Wilfred G. Conray, G. H. Walker & Co., Providence,
I.; Duke Hunter, Hunter Securities Corporation; Carl Swenson, G. H. Walker & Co., New York City
Tom
R.
Ted Moynahan, J. Arthur Warner & Co., Incorporated; William D. O'Connor,
Fitzgerald & Company, Inc.; Alfred F. Tisch, Fitzgerald <ft Company, Inc.
Treanor, Guest;
Michael Pinto, Good body & Co.; Irving LeBeau, May &
Gannon, Inc., Boston; Chas. S. Benner, Charles
S. Benner & Co., Allentown, Pa.; George Dockham, Hincks Bros. & Co., Inc., New
Haven, Conn.;
John
McCue, May £ Gannon, Inc., Boston
;
;
OI LI
LIMITED
Underwriters
•
Brokers
•
Dealers
\
•
■
+ NEW YORK
★ CINCINNATI
★
Philadelphia
★ Baltimore
★ Boston
CANADIAN SECURITIES
★
Dayton
★
★
★
Portland, Me.
★
Chicago
Direct
wire to
private
The First Boston
Montreal and
on
all
★
Kutz Canon Oil & Gas
Corporation, New York
Stock orders executed
Morton Oil
London
Easton, Pa.
Hartford
★ San Francisco
★ Louisville
★ Private Wire Connection*
Oklahoma Oil
New York Stock Exchange
Branch Offices
Hamilton
Lewiston, Me.
Correspondents in
King Street West, Toronto, Canada
Ottawa
Lexington, Ky.
★ Detroit
Exchanges
Head Office
Montreal
.'■ '■.
CO.
DEALERS IN ALL
50
■■
CORPORATE AND MUNICIPAL SECURITIES
There9s No Business
Like Oil Business I
-
ESTABLISHED 1886
W. E. HUTTON &
McLeod,Young,Weir & Company
Members of The Investment Dealers' Association of Canada
Winnipeg
Exchange
Memberships
Sierra Petroleum
New York
New York Curb Exchange
Philatlelphia—Baltimore Stock Exchange
Midwest Stock Exchange
Chicago Board of Trade
Cincinnati Stock Exchange
Correspondents in London, England
Sioux Oil
Tri-State Oil & Refining
We
Offer
a
Western Oil Fields
COMPREHENSIVE INVESTMENT
Woodward Oil
DEALER SERVICE
Servicing
AND
Brokers and Dealers
in
ALL CLASSES
Wyoming Oil
Since 1878
trading markets
on
others.
We Are
Members New York Curb
11
Wall Street
Telephone HAn over 2-5000
Teletype NY 1-1110 & NY 1-1111
RAILROAD
—
INDUSTRIAL
Particularly Adapted to Service Firms
Your
Inquiries Solicited
Stanley Pelz & Co.
Exchange
New York 5, N. Y.
—
With Retail Distribution
Asiel & Co.
Members New York Stock Exchange
AND STOCKS
FOREIGN ISSUES
the above issues and
many
OF BONDS
including
PUBLIC UTILITY
Active
INCORPORATED
52
35
p. f. fox & CO.
BROADWAY, NEW YORK 4, N. Y.
BOwling Green 9-5577
Teletype NY 1-3184
120 BROADWAY, NEW YORK 5, N. Y.
Telephone
Teletypes
REctor 2-7760
NY 1-944 & NY 1-945
36
The Commercial and Financial Chronicle
(1728)
Everett W.
Underwood, Boenning & Co., Philadelphia;
J. C. Rogers
.
.
Thursday, April 24, 1952
Rodolphe Casgrain, Casgrain & Co., Ltd., Montreal; Arthur Schwartz, Bache & Co.;
Charles King, and Bob King, Charles King & Co,
Snyder, E. W. Snyder and Co., Syracuse; Walter Gutman, Goodbody & Co.; John O'Mara,
& Co.; Edward Bullock, Reid-Bullock Co., Syracuse; Jim Cleaver, Goodbody & Co.
Good body
Fred
.
Herbert Hipkins,
H, Sheldon Parker, Kay Richards & Co., Pittsburgh; O. D. Griffin, Griffin, Kuipers & Co.;
Henry G. Kuipers, Griffin, Kuipers & Co.; Thomas J. Hickey, J. W. Sparks
& Co.; Charles H. Jann, Estabrook & Co.
Geo. McVey, Lehman Brothers; John C. Rogers,
& Company, Limited, Montreal; John Penny, Lee Higginson Corporation;
Warren MacKain, Glidden, Morris & Co.
California Tungsten Corp.
RAILROAD
Century Natural G & 0 Corp.
Cons. Uranium
PUBLIC UTILITY
Mines, Inc.
Canadian Securities
Copper Canyon Mining Co.
INDUSTRIAL
Deardorf Oil
Corp.
Electronic Devices,
Inc.
BOND and STOCK
Gaspe Oil Ventures
BROKERS
Provincial
Government
Public Utility
Municipal
Great American Industries
General Tin Invest. Ltd.
State and
Greater N. Y. Industries
Municipal Bonds
Higgins, Inc.
Lexa Oil
Members New
Members New
Loft Candy
York Stock Exchange
York Curb Exchange
Company
Corporation
Wood, Gundy & Co., Inc.
Wm. Penn Gas Co.
New York 5. N. Y.
49 Wall Street
Corporation
Lime Cola
& Hickey
Vilas
14 Wall
Street, New York 5
Red Bank Oil Co.
105 West Adams Street,
Reeves Soundcraft
Telephone: HAxiover 2-7900
Teletype: NY 1-911
Corp.
Reiter-Foster Oil Corp.
Toronto
Montreal
Winnipeg
Chicago 3
Vancouver
London, England
Soya Corp. of America
Stanwood Oil
Television
Corp.
Equipment Corp.
Television & Radar
Corp.
Trad Television Corp.
Railroad
Securities!
United Minerals
Leased Line
Guaranteed
Bonds
Preferred
Corp.
Utah Uranium Corp.
'
Sjgg
Common
Video
Corp. of America
Williston Basin Oil
Wyoming Oil Company
Industrial Stocks
Securities
Cinema
Television, Ltd.
Gaumont-British Pict. Corp.
Mexican
Adams & Peck
•
Telephone BOwling Green 9-8120
i ■'
^
.
Bell System Teletype N. Y. 1-724
".
Boston
Local Industrial & Utility Stocks
Trading Markets
Retail Distribution
New York 5
M. S. Wien & Co.
Private telephone wires to branch offices
Hartford
Eagle Oil Co. Ltd.
Scophony-Baird, Ltd.
Established 1924
63 Wall Street
Municipal Bonds and Corporate
Philadelphia
ESTABLISHED
40
Exchange PL, N. Y. 5
1919
HA. 2-8780
Teletype N. Y. 1-1397
STRADER, TAYLOR & CO., INC.
LYNCHBURG, VIRGINIA
LD 39 TWX LY77
(1729)
Number 5110
Volume 175
.
.
.
York Hanseatic Corporation; Joe Morrissey,
George J. Dineen, Coggeshall & Hicks; George
Manufacturers Trust Co.
Jim Canavan, New
& Co.;
37
Chronicle
The Commercial and Financial
Richard J. Buck
Lawson,
Fred W. Opitz, Roberts
D.
& Co.; Elmer E. Myers,
George B. Wallace &
Ohlandt, Jr., J. Arthur Warner & Co., Incorporated; Alonzo
Lee, Sterne, Agee <6 Leach, Birmingham, Ala.;
Milton Capper, Edelmann & Capper
Co.; John
H.
Equitable Securities
H. Frank Burkholder,
Corporation, Nashville
.
_
Harry
At
.
,
,
,
...
01
...
,
OKane, Jr. & Co.; John W. Sherger, Francis I.
Manley, Francis I. du Pont & Co.; Stanley Graff,
Kane, Jr. & Co.
D. Casper, John J.
& Co.; Walter K
Pont
du
Milton Underdown, Hill, Thompson & Co., Inc.; Fred L. Harson, Fraser, Phelps
& c
Providence, R. I.; Robert Strauss, Daniel F. Rice and Company,
Chicago; William H. Boggs, Hill, Thompson <fi Co., Inc.
Edward R. O Kane, John J. O
Foster & Adams;
Tour
■
Service...
•
Underwriters, Distributors and Dealers
Corporate and Municipal
Singer, Bean &
Markets
Net
to
in
Securities
Institutions and Dealers in
Corporate Stocks and Bonds
and Foreign Issues
40
Members New York
H I R S C H
Exchange Place
Members New York Stock
..."
BROAD STREET, NEW
25
■'«.
.i
Wj.*-'
Telephone
HAnover 2-0270
ENGLAND
LONDON,
Wire
Direct
15 Broad Street,
HAnover
New York 5
2-9780
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Tel: Lexington 7861
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★
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Tel: GAstonla 5-2317
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Tel:
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Teletype: N.Y. 1-210
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Eye St., N. W.
Curb Exchange
YORK 4, N. Y.
Telephone: HAnover 2-0600
1636
Stock Exchange
Members New York
C O.
&
Exchange and Other
New York 5
♦
Co.
Adler, Coleman &
Mackie, Inc.
—
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Representatives: GENEVA
—
New
•
York, Washington and
AMSTERDAM
Baltimore
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Bank Stocks
♦
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Public Utilities
Mclaughlin, reuss & co.
MEMBERS
NEW
YORK STOCK
EXCHANGE
EXCHANGE (ASSOC.)
COMMODITY EXCHANGE, INC.
NEW YORK CURB
FIRM
GEM & CO.
TRADING MARKETS
*
"V.
INCORPORATED
FOR
BOND BROKERAGE
SERVICE
NEW YORK 5
i
10 Post Office
Square
2-0650
BS-297
...
Specializing in Railroad
BROKERS...
Securities
1-7644
CV-394
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STREET
Telephone
NEW YORK 5
HAnover 2-1355
NEW
YORK
•
ST.
WIRE
•
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LOUIS
14
SAN FRANCISCO 4
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210 W. Seventh Street
M'CH,,clA/i0z837
LA-1086
PRIVATE
ONE
CG'm
NY 1-2875
Union Commerce Bldg.
INSTITUTIONS
FRANKLIN 2-7535
3 0781
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SUPERIOR
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BANKS
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BOSTONS
•
SYSTEM
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SF-573
CONNECTING:
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SAN FRANCISCO
TELEPHONES TO:
Teletype—NY 1-2155
Hartford, Enterprise 6011
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Detroit, Enterprise 6066
38
(1730)
The Commercial and Financial Chronicle
Richard
Mead, J. P. Morgan
Incorporated
&
.
.
.
Thursday, April 24, 1952
Co.
This advertisement is not
to
an offer to sell or a solicitation
of an offer
buy these securities. The offering is made only by the Prospectus.
Primary Markets in
UNITED-CANADIAN
New York
OIL CORPORATION
City
(A DELAWARE CORPORATION)
Bank Stocks
Common Stock
Price $1.00 per
Copies of the Prospectus may be obtained
from the undersigned
Kugel, Stone & Co.
Incorporated
20 Broad Street
'"
Telephone: WHitehall 3-2050
share
'
New York
AIGELTINGER & CO.
5, N. Y.
Teletype: N. Y. 1*1822
Eugene Dickhuth, New
York
Est.
1938
Herald
Tribune
•
Member Natl. Assn. Securities
Dealers, Inc.
52 Wall Street, New York 5, N. Y.
Tel.
WE
Dlgby 4-8040
MAINTAIN ACTIVE
TRADING MARKETS
IN
Aetna Securities Corporation
STERLING OIL OF
OKLAHOMA, INC.
PALMER STENDEL OIL CORPORATION
SHAW OIL & CHEMICAL CORPORATION
GULF COAST WESTERN OIL CO.
Underwriters and Distributors
GENERAL FUSE COMPANY
Industrial Securities
COPPER CANYON MINING COMPANY
111
HUNTER
Broadway
MEMBER:
New York 6, N. Y.
SECURITIES
NATIONAL
ASSOCIATION
UNDERWRITERS
52
Walter Filkins, Troster, Singer & Co.
—
CORPORATION
SECURITIES
DISTRIBUTORS
—
DEALERS, INC.
DEALERS
BROADWAY, NEW YORK 4, N. Y.
Volume 175
Number 5110
.
.
.
(1731)
The Commercial and Financial Chronicle
Dealers and Brokers in
Railroad, Public Utility & Industrial
Bonds & Stocks
Trading
Over-the-Counter
Leslie
Howard
D.
Dept.
Barbier
Brown
Ingalls & Snyder
Members New
York Stock Exchange
Members
York
New
Curb
COrtiandt
Neil
7-6800
Exchange
NEW YORK 5, N. Y.
100 BROADWAY
—
Bell
Teletype NY 1-1459
System
O'Connell, Laird & Company, Wilmington, Del.; Harold Clouser, Laird & Company, Wilmington,
Del.; Arthur Bullock, Paine, Webber, Jackson & Curtis; Frank Walters, Paine, Webber,
Jackson
&
Curtis
Pflugfelder & Rust
Members ol the New
61
York Stock Exchange
BROADWAY, NEW YORK 6, N. Y.
Telephone BOwling Green 9-4900
For
Markets in New York,
Over-The-Counter
call "Bill" McGovern at
our
New York
office,
COrtiandt 7-0175
Ed
Welch, Sincere & Co.; George E. Rieber, National Association of Securities Dealers;
Irwin R. Frumberg, Securities & Exchange Commission
LATSHAW
Members
NEW YORK STOCK EXCHANGE
NEW
YORK
CURB
STOCK
MIDWEST
ASSOCIATE
EXCHANGE
Kansas City 6, Missouri
111 West 10th Street
Teletype: KC-67
Direct private
YOU
HOW
Frank Harrington, H. D.
Knox & Co., Inc., Boston; Sam Magid, Hill, Thompson & Co., Inc.
wires to principal cities
PROFIT WHEN YOU
Advertise Your Annual
•
Report
"■
Y-
Stttti-Erir;*«£»»""•
Of to «
Annual Report a
As _
with
ful pubhc
helped to
develop it into a po^ ^ wt
relations
>nstru®® ''
y>
art
advertisement tha
yourcompany
year. Why
reflect
fiscal
and
d
^
typographical
during the
^
last
with u8?
Business'*
COrtiandt 7-5060
A,
mbM
Advertising
^
Irving
Greene, Greene and Company; Phil Clark,
and Company; Daniel Cowin, Hettleman
Greene
Amos C. Sudler & Co., Denver; Robert M. Topol,
& Co.; B. W. Pizzini, B. W. Pizzini & Co., Inc.
Chicago. San Francisco
39
40
(1732)
The Commercial and Financial Chronicle
.
.
.
Thursday, April 24, 1952
Security Traders Association of New York
16th Annual Dinner
Charles
Bill
J.
Quinn, Dean Witter & Co.; Sam Brown, Dean Witter & Co.; Thomas E. Wood, H. N.
Whitney, Gcadby & Co.; Ben B. Potwardoski, H. N. Whitney, Goadby & Co.
Burke, May & Gannon, Inc., Boston; Daniel G. Mullin, Tucker, Anthony & Co.; Joseph F. Whalen,
Hanrahan & Co., Worcester, Mass.; John F. Lynch, Hanrahan & Co., Worcester, Mass.; A. C.
Bickelhaup, Jr., Grabau-Buchman, Syracuse; Bill Eiger, Goodbody & Co.
April 18, 1952
Michael Voccoli, Charles King & Co.; Joe
Malavet, Bache & Co.; Jerry Burchard, Charles King & Co.;
Stanley Younger, Charles King & Co.; Jim Flood, Bache & Co.
Nat
Krumholz, Siegel & Co.; D. Raymond Kenney, D. Raymond Kenney & Co.; Charles D. Ogden and
Arnold J. Wechsler, Ogden, Wechsler & Co.
BRANCH OFFICES:
♦
Buhl
Specialists
MS Donnell & P.O.
1
New York
I
•
'
1917
Stock Exchange
Press Plaza
ASBURY PARK, N. J.
New York Curb Exchange
<s>
120
REORGANIZATION
<s>
Members
Since
WARRANTS
254
BROADWAY, NEW YORK 5
Park Avenue
NEW YORK
I
CITY
Telephone REctor 2-7800
<$>
Produce
SECURITIES
Building
DETROIT, MICH.
Exchange
NEW YORK CITY
i
Number 5110
Volume 175
.
.
The Commercial and Financial
.
Chronicle
Brought out yesterday this $15,issue, first
000,000
Our
many
months
and
of its kind in
therefore
af¬
fording the element of diversifica¬
tion, set something of a mark for
Reporter's
(1733)
If AIMpHi Elilltshfif* With Home" one of the most popular
AGIIIICIII ftfUllallGG Vfltn institutional
magazines
country.
Albert Frank Agency
Kenneth
Dunshee
H.
has
Regarded
as
in
one
the
in
moving out to
inves¬
signed
re¬
also
act
as
an
advisor
to
The
H.
as
Report
market.
the list will be Union
Those who handle the
of
issues
new
haven't
much
got
marketing
corporations
for
the
Mo.'s
$30,000,000
Electric Co.
of
30-year
first
mortgage bonds on which
kick about
might be bids will be opened next Tuesday.
to
the moment unless it
at
of
in
OAKLAND,
He will continue to edit the of¬
publication
Insurance
Home
The
of
Calif.
—
Gene
Schwanze
AURORA, 111. —George W.
Kirby, Stanley
B.
Bradenburg,,
and
Terence
Company,
tional
was
M.
associated
come
Bank
for
many
and
more
Gustav Muth
FOREST
when
back
getting
few
cool
with Frank Knowlton &
Company, "News from
Co., Bank
came
were
recep¬
condition
never
to pass
and, quite to the con¬
underwriters and dealers
trary,
alike
themselves with
find
if
anything, in the
tory problem.
The
little,
of inven¬
way
STATEMENT OF CONDITION, MARCH 31, 1952
it
market,
secondary
veloped, reflecting
de¬
combination
a
RESOURCES
of lack of any appreciable volume
of
offerings,
in
the
market,
money
ease
witness
as
behavior of the Treasury
the
which
to
persistent
and
list,
edged persistently forward
make
the
securities
yields
on
attractive
look
debt
new
to
buy¬
Cash
689,849,255.12
109,889,269.06
Loans:
Loans and Discounts
time and books invari¬
a
ably had been open for several
days on such issues before buy¬
in
appeared
numbers suffi¬
given deal. But
cient to soak up a
Real Estate
Branch Buildings
recent
ments
■
Customers'
issue
This
released
was
from
and
102%
the initial offering price of
from
102.973
294,544,204.97
61,099,300.54
>55,643,505.51
6,908,002.55
,
3,029,273.58
••«••••«
Liability
on
Letters of Credit
Acceptances and
•
•
•
4,121,004.92
•
•
$1,597,499,970.51
low
a
the
of
yield
It has been
was
Deposits:
$1,305,979,653.30
Commercial, Bank and Savings
147,765,826.42
United States Government
Other Public
Bills
,
•
Deposits
.
44,837,254.37
Accrued Expenses
8,835,834.95
and Other Liabilities
Acceptances and Letters of Credit
4,121,004.92
•
Capital Funds:
Common Stock
15,000,000.00
($10.00 Par Value)
45,000,000.00
Surplus
Undivided Profits
•
•
•
•
10,960,396.55
.
70,960,396.55
$1,597,499,970.51
since
quoted
$1,498*582,734.09
15,000,000.00
Payable
shade above that level.
a
The
that
to
where
3.11%.
just
new
early in the week
back
$
LIABILITIES
utility
issues experienced a bit of set¬
tling upon being released from
syndicate. But there was no severe
pressure
apparent.
Consumers
Power Co.'s new 3^s which got
away a
little slowly a fortnight
ago, might be cited as an example.
settled
•
concerned.
are
of the
syndicate
•
•
....
and Leasehold Improve¬
Settling Movement
Some
•
.
Mortgages
Accrued Income and Other Resources
they did get around to it and with
satisfactory result so far as un¬
derwriters
428,059,659.77
•
..•••••
Other Securities
The latter had been quite stub¬
born for
$
Hand and Due from Other Banks
United States Government Securities
ers.
ers
on
who
bankers
issue
paid
brought
the
out
company
a
price of 102.157 and dealers had
the
opportunity to turn back
bonds before the agreement was
United States Government Securities carried at
statement are
$210,760,133.82 in the foregoing
pledged to secure public deposits, includingdepositsol $17,870,037.47
of the Treasurer-State of
Michigan, and for other purposes required by law.
BOARD
terminated.
OF
DIRECTORS
GEORGE A. STAPLES
HENRY E. BODMAN
With
lull
the
shaping
in
business
new
ahead, it appeared that
up
buyers looked a bit more
Alabama
the
upon
mew
kindly
Power Co.'s
issue than had been the
B. E. HUTCHINSON
ROBERT J.
Alabama Power Issue
BEN R. MARSH
DONALD F. VALLEY
PRENTISS M. BROWN
WALTER S. McLUCAS
JAMES B. WEBBER, JR.
BOWMAN
CHARLES T. FISHER
W. DEAN ROBINSON
R. R. WILLIAMS
CHARLES T. FISHER, JR.
NATE S. SHAPERO
C. E. WILSON
JOHN B. FORD, JR.
R. PERRY SHORTS
BEN E. YOUNG
case
with other recent flotations.
Even
Five"
one
reported
with
its
of this
news
of
the
insurance
to
so-called
gotten
have
order for
one.
"Big
companies
a
was
in
early
sizable
piece
And evidently as the
spread, it generated demand
from
other
which
sources
might
have lagged otherwise.
At
that
any
rate
it
was
indicated
prospective buyers
closed
had
interest
sufficient
to
dis¬
ac¬
count for about two-thirds of the
$12,000,000 total
as
books opened.
A Real Fast
Bankers
Coal
Co.'s,
handling
One
the Peabody
20-year
new
sinking
fund first mortgage bonds decided
to accelerate the
marketing of that
particular piece of business which
had
been
down
tentatively
next week.
for
Opens
business from offices at 134 Con.tinental Avenue.
of America Building.
in the offing.
that
However,
hast
F. Muth is
engaging in the securities
tion and the threat of some degree
of congestion was
recently
Aberouette has become connected
weeks
offerings
new
somewhat
a
a
HILLS, N. Y.—Gustav
have
might
years
been with James E. Bennett &Ca_
ahead.
cidedly better than
been
anticipated
a
Na¬
Mr. Kirby
Cavanagh & Kirby of
things have turned out de¬
But
Schwanz &
Merchants
Building.
formerly
partner in
Chicago,
Coyne have be¬
with
Inc.,
period of relative slack which
looms
Co,
(Special to The Financial Chronicle)
(Special to The financial Chronicle)
1953.
ficial
Join
country's
public relations director V. Smith Museum where he has
and
assistant secretary
of The served as curator for the past 12
tors.
Home Insurance Company to join
years.
Albert Frank-Guenther Law, Inc.,
Preliminary interest had tagged
advertising agency, and has been
David Warshaw Opens
this operation as a quick sell-out
appointed a member of that com¬
and this presumably could have pany's Plans Board.
JAMAICA, N. Y.—David War¬
shaw has opened offices at 178-33
Corporate
underwriters
who been a factor in speeding up the
In his new post, he will act as
have been keeping busy these last
consultant on The Home Insur¬ Croydon Road to engage in the
marketing since the new issue
securities business.
few weeks were satisfied to sort of
ance
Company's advertising pro¬
calendar was virtually free at the
"sit back and take a breather" as
gram, as well as in the develop¬
the trend of new financing veers moment.
ing of special projects including
With Frank Knowlton
the Home's centennial celebration
momentarily toward the municipal
The next major undertaking on
celerity
George Kirby, Others
of this
leading authorities on
the history of fire fighting, he will
41
NATIONAL BANK OF DETROIT
The Commercial and Financial Chronicle
Continued
Public
American & Foreign Power
common
stock—were listed
debentures
the
are
issues has persisted thus far.
Foreign investors in the debentures
can receive interest
on the two issues free from the
30% with¬
tax,
since
the
company's operations
the foreign
in
are
the
available, following is the
pursued
Loans—Parent
Long-term Debt—Parent Deb. 5s of 2030__
Junior Deb. 4.8%
50
16
59
Subsidiary Companies
14
Preferred
Stock—Subsidiary Companies
Minority Interest in Subsidiaries.
Common Stock Equity
(7,152,711 shares)
10
3
33
8
186
45
\
of
as
a
result
some
doubt has arisen
to the
timing and amount
forma share earnings
as
the
initial dividend.
Consolidated pro
$2.33 for the 12 months ended March 31,
1951, but by the
12 months ended Sept. 30 had receded to
about $2.02. Preliminary
calendar year figures are
expected to be available shortly.
were
The
indicated
decline
in
earnings is not the only factor in
the dividend situation, however. The
parent company's cash posi¬
tion
New. York
at
has
deteriorated
is
also
important.
somewhat
because
dollar remittances in Brazil in recent
the company from
It
of
is
understood
the
morflths,
that
this'
virtual embargo on
which has prevented
converting much of its equity earnings in that
country into dollars. The company had expected that the
ExportImport Bank at Washington would, before this
time, have approved
$41 million loan to the Brazilian subsidiaries which would have
aided in the construction
program in that country. Such approval
a
has
been
delayed, possibly due to political repercussions
foreign exchange actions of the Brazilian Government.
President
Vargas of Brazil
interpretation
from
earlier
this
over
which
merely
on a
taking out in dollars
than 8% profits on their invest-'
ment.
In
declaring reinvested local currency earnings to be
"national capital," and therefore
ineligible for a return in dollars,
he made it retroactive, so that
many companies which have been
letting their profits remain in Brazil over the
past few 'years
now would find it difficult or
impossible to take out either prin¬
cipal
earnings
or
on
more
this
"new
Foreign Power's experience
money."'- Due
to
farsightedness
and
for
normally have had
because
of
imports
a
any
severe
difficulties due to
Argentine due to the
dollar remittances
dollars), it would hot'
the
edict.
shortage of dollars in Brazil
(particularly of wheat, which
from the
severe
no
&
However,
due
longer
is
to
obtainable
drought in that country),
on
foreign capital have been severely restricted
since last September.
Foreign Power was hurt by this latter
development because it had commitments for
purchase of Amer¬
ican
materials
Brazil.
However,
business
in
other "hard
dent
on
and
machinery for the
Foreign
currency" countries,
only
forma
so
28%
of
its
that it is not entirely depen¬
earnings projections prepared'
share earnings in
a
range of
$L61-$1.8l
(these
would
be
scaled
some
$3.22-$4.21 and parent
figures have been
down
under
To
company earn¬
what
present
for" final
extent
conditions
these
is, of
would
provide
letting them run
depending
with
a
range this year of 13y8-10.
a
ture, and share earnings (adjusted for
between
$1.85-$2.35
maintained
during the
The dividend
fairly conservative capital struc¬
period
a
a
recent
1947-50.
split-up) ranged
It
has
usually
strong cash position and has a
long dividend record
except for omissions in 1933-35 and
1939-40. Foreign Power has
a more diversified
spread of operations and has an
interesting
speculative feature in its
$100 million investment in the
Argen¬
tine—which it might be able to
salvage in the future if political
conditions improve in that
country.
as
cost
a
be
may
rela¬
a
the
businessmen's
ence
the
businessman
decisions.
If
oblivious
of
is
cost, the banker will usually
by making the funds
available
stricter
loans
available
or
Expansion
To
the
ex¬
question also needs inter¬
Can
tlie
two
one
blades
of
which of
say
pair of scis¬
a
expanded
to
out
Federal
Reserve
support,
banks have to resort to their
resources
borrow
or
eral Reserve
and
serves
to
at
own
the
Fed¬
increase their
lending
re¬
with
power,
the effect that credit is tightened.
Somewhat
the
consider¬
same
ations
apply to the effects upon
lending policies of nonbank
investors, though the operations
the
of
the
post-Korean
demand
(and
factors
postwar)
activated
the
supply already present. In
sense, credit expansion may
money
this
be
said to have been
ing
factor
it
and
condition¬
a
contributed
to
the
inflationary process. Until ac¬
tivated, however, money supply
lay dormant.
Since going off the
the stage is
ard,
gold stand¬
always
for
set
insurance, companies, savings
inflationary
movements. ' Under
banks, farm, and building and loan
institutions are not so sensitively managed money, the policy has
been
by credit policies
commercial
banks.
do
they trade
Nor are they
as
They
are
do
not
liabilities,
have large demand
to
to
nor
such thin equity.
on
intimately bound
so
accommodate
their
customers'
credit needs. They are therefore
freer to sell government securities
to
take
advantage of any differ¬
ential yields in other investments
or
advances.
Consumer
saving. The classical
theory relates the amount
ing to interest rates as a
reward for abstinence
ing.
It
is
a
false
of
charge
wait¬
the
to
at
cannot
cost.
But
all
accounted
for
a
be
savings
this
on
basis. If only the
marginal savings
that find the market are interest-
induced, the total supply would
affected
I
by
As
changes
in
inducement
an
be
interest
to
save,
difference between higher
see no
interest
rates
on
yields
Saving
savings
investments.
on
is related
and
to
income
and
stock
psy¬
with
up
housing,
restrictions
in
plant
etc.,
could
before
be
put
into effect found the financial sys¬
tem
immediately
available
for
providing "effective demand" for
goods, services, and securities.
The
postwar
the
which
had
ing the
boom
of
result
been
the
of
suppressed
dur¬
mone-
public -debt
pro¬
vided excessive purchasing power
which could find an outlet only
after
controls
civilian
Consecutive
increases
sorbed
became
rounds
were
by
lifted
were
goods
and
available.
collapse. Hence
insulating certain sec¬
U.
S.
obligations in the
cial banks.
we
segregate the credit and
monetary system from market
forces by making money irredeem¬
able;
then-we monetize
which
we
going
standard
and
fluences
of
income
Business
ship
also
plant
between
a
expenditures
interest
capital
expenditures.
admitted
quite
deny
ally make
an
rates
This
and
seems
by
economists
Even those who
generally.
the influence
costs on business
capital
savings.
close relation¬
to
be
and
affect
of
budget
and
debt
on
capital
constitutes
an
costs.
place
to
should
find
to
The fed¬
be
balanced
stopped.
production be
or
high
new
levels:
into
is,
inflated
our
ducing assets for
increased
that
tary structure, which
we
mone¬
means
the time
pro¬
being
without corresponding increase in
debt. The alternative to this policy
of
checking inflation is the
risk
carious
of
credit
a
pre¬
collapse
collapse,
—a
incidentally, which
probably,.be attributed to
would
"failure of capitalism"
the
rather
than to poor money.jnanagement.
Selection
controls
pervision
which
of ..the
bank
tended.
involve
for
be
ex¬
may
supervision
by
su¬
purposes
credit
This
exercised
be
may
de¬
government
a
partment, a central bank, or by an
especially constituted body—in¬
formally or in accordance with
specific legislation.
These
origin
controls
during
have
had
their
the
cheap money
general rise in inter¬
era, when a
est rates has
minimize
been
prevented
interest
burden
public debt) and when it
(to
the-
on
was con¬
sidered necessary or expedient to
restrain or guide the use of credit
by
direct
action.,
Various countries have
had
ex¬
perience with selective credit
con¬
trols—all
as
of
them,
far
so
I
know,v countries pursuing easymoney policies through credit in¬
flation. Control of stock exchange'
margins in the United States orig¬
inating in the Securities and Ex¬
change Act of 1934 was perhaps
statutory con¬
during the war years*
regulation
of
install¬
but
ment credit
would
done
not,
in
my
serious
any
moderate
have done
restric¬
some
good.
introduced and in
was
legal restrictions
real-
credits.
were
estate
put
on
construc¬
England,
FrancesSweden, the Netherlands, Canada;
Australia, and New Zealand are
the countries resorting to
among
forms
of
selective
during the
war
by many economists entering this
with Australia
debate
credit
controls
and postwar years;
most detailed
that
a
moderate
policy would have had
cant effect but that
icy
have
would
trophe.
Both
conclusions
seem
to
the;
of
me
no
signifi¬
drastic pol¬
caused
catas¬
reasoning
these
and
economists
inconclusive and
(See
roneous.
a
credit
Question
er¬
ence
in
our
General
conditions, especially with respect
to /the
banking
structure ;and
banking methods,
would' make"
problematic
1.)
long
Controls
Credit
obvi¬
cannot be made effective
as
government debt
ported by the banking
or
would
Controls
is
is not conclusive. Dif-<
own
success
Credit
so
sup¬
In
the
failure
mean
another.'
conclusion
in
success
•' '
that
one
or
country
failure in.
/
general,
•
a
I"
would
selective credit controls
ate
system at
having perhaps the
regulations. Experi¬
in these countries as well "as
ferences in economic and political-
consider
a
ppropri-:
instrumentalities
uations
The idea that lower interest rates
artificially low rates of interest.
ances
increase capital
This situation is not of recent ori¬
only
investments is at
level.
monetization
must grow
tion
industries,, e.g., public utilities,
housing, real estate, in which the ously
return
allowed
Either credit contraction must take
have contributed to the control of
decisions gener¬
important part of the total
be
market
own
eral
trols,
interest
exception of capital
gold
market.
the first example of
I do not share the view expressed
in
the
disciplinary in¬
free
the
any
must
the
a
economists
to
effectively in the face of ex¬
pansionist policies only. Interest
residential
a
back
General credit controls will not
1950
Even
debt
segre¬
work
statutory
harm.
serious
some
propose
wage-price farm support spi¬
ral. A tighter credit policy
might
and
the
to
propose
ab¬
tion would
changes
now
gate in part to free it from the
operation of market forces. No
wonder
the
have
may
control
one
leads to another and still another.
First
manner, farm support prices
increased costs and entered into
opinion,
of
commer¬
Parenthetically, it
here be observed how
rate
In
same
inflation
special
consisting
reserves
than
prices.
also to
assets, and it follows that
credit' policies resulting in
segregating
e.g.,
secondary
of -wage
more
higher
controls
market
forces;
pent-up forces
Basically, the
war.
tization
1945-48
of
credit
our
afraid
we are
we
propose
tors from the influence of market
goods inventories and
expansion,
war
keeps
investments
sav¬
no
ing without this price. The clas¬
sical theory gives ample consider¬
ation to "negative
interest," i.e.,
saving which would take place
even
start
to
assets
turn
concerted
to
urge
bank
in
The
easy.
chological
all
this
consumers'
was
or
keep
and
sav¬
implication
state that there would be
liquid,
credit
weakened
and
orthodox
use
lest
their
Inflation
This
deficit
credit structure that
rates ..should
of
Cause
a
1933,
on
inventory
speculative.
become
pretation.
so
when
terms
sors is responsible for the
cutting
stabilizing influence
in
the edge? One" may assert that the
money market; government bonds pressure is being exerted on one
falling below par will not cause blade, but without the other, cut¬
panicky selling. However, with¬ ting would be ineffective. Thus
program. There is
This company has
such
of
with
financing,
in
policy of the thirties
the basis
cause
of
our
present
dilemma.
Deficit financing at artificial low
rates through credit inflation has
a
Practically the only stock on a comparable basis with
Foreign
Power is Brazilian Traction
Light & Power on the
selling at 10y2 and
are
interest
they constitute a
carrying inventory. Be¬
in
cost
cause
in
tent that this is the case, we have
values
rate is $1.
on
affecting the price
course, unknown.
Curb, currently
changes
insofar
Credit
of government bonds.
higher
adjusted
inventory policies
by
are'
out any storms
rates.
time ago in"
plan proceedings estimated 1952-55
changes in the recapitalization
program).
forecasts
about
in
currency regulations.
connection with recapitalization
ings at
does
program
Brazil, and operates in Cuba, Mexico,
Panama, and
South American
Pro
Power
construction
Business
undoubtedly many
banks today in a position to ride
or
heavy
hardly accounts for the degree of
stimulation that took place.
liquidity.
There
.
(technically, all'
of its Brazilian investment is
registered in
American
demand
Federad Reserve banks
or
affected
placed J new
1946 order intended to
prevent U. S: companies'
year
of
less
by
off rather than
Recent market interest
and
backlog
a
remind him
cash
100%
$414
of
ence
the
market
has, of course, been mainly in the new
common stock, which reached a
high of 12 V4 but recently declined'
to 9%
(10 at this writing). In the recapitalization proceedings
before the SEC, the company sometime
ago indicated its hopes
of initiating dividends at the annual rate of
$1, providing there
was no change in conditions.
However, conditions have changed'
postwar period stim¬
ulated a housing boom and plant
expansion programs. The exist¬
rates
cautious
(demand for
increases. To
lower mortgage
funds)
example:
an
of
area
tively minor one does "hot warrant
the charge that it does not influ¬
■
*
cite
that
more
used
cultivation
rates in the
subsequent
standard
easy-money
securities
12
67
of 1987
for
investment
gold
the
of
abandonment
and the forties to get at
sell. In other words, they provided
for internal liquidity by holding
2%
$9
land
affected
suddenly be al¬
a
the
prudent policy of diversifying
their holdings and arranged matu¬
rities so that they could weather
changes without being forced to
Percent
Millions
Bank
policy might
(lower interest rates), the
best
and
believe;
devaluation
the
and
the
the simile of the river overflowing
its banks. When the water recedes
believing
or
I
the
to
dollar
old in economic literature
as
Turgotr who,
the
in
not
interest
tered,
estimated system capital set-up:
and
one
public
field.
While accurate figures are not
yet
position with regard to
government ob\
same
taken
least
as
ligations. Some banks interpreted
literally the "Pattern of rates"
schedules announced by the Treas¬
ury and Federal Reserve in 1942
and pursued a
policy of heavy
holdings of long term-bonds at
higher yield on the ground that
they were as liquid as short-term
Treasury bills. Other banks, either
holding that the policy was a mis¬
currently selling at 69 with a range
on
the Exchange of
72%-68V4, as compared with the old line
debenture 5s of 2030 (undisturbed in
reorganization) which are
around 881/2 with a
range this year of 93-85. While the new issue
has a much shorter
maturity and offers a more attractive yield
than the 5s, the approximate
20-point spread between the two
holding
private bor¬
to
their holdings of
Exchange.
The 4.8%
credit
Not all commercial banks are in
the Stock
on
their
with
rowers.
pending court appeals. After signing of the order by the Federal
Judge, over-the-counter when-issued trading in the new securities
was
initiated, and later the new securities—4.8% junior deben¬
new
Monetary
Credit Principles
And
Thursday, April 24, 1952
.
gin, nor is it a product of war
financing alone. We have to go
A Reversion to Sane
American & Foreign Power was reorganized Feb.
29, this year,
after many years of litigation and some last-minute concern over
1987 and
11
page
.
back
Utility Securities
By OWEN ELY
tures due
jrom
.
where
have
as
only in sit-significant imbal¬
occurred,
and
then
temporary expedients, to
Volume
be
175
Number 5110
The Commercial and Financial Chronicle
.
relaxed
and suspended when
"emergency"
subsides.
I
the
,
would
favor
l
ments
rather
statutory
*
..
informal
than
basis,
and
administration
or
arrange-
control
on
a
supervision
of
monetary
controls througn the Federal Re¬
serve
rather
ment
department
constituted
hands
tnan
by
body.
of
the
govern¬
a
specially
left in the
or
a
If
Federal
Reserve
authorities, there would
be a better chance of sooner abandoning such selective controls in
,
.
favor
,
I
of
return
a
the
to
instru-
ments of quantitative controls and
interest rates.
,
One
is
Administration
tion
of
"less
ment."
has
ployment,
used
else
constructing,
prices, free
competition, free
markets, free
contracts,
and
under
be
of free
of
free
conditions
"enterprise
stated
of
so-called
control.
\'
inflation."
Credit
of
spending
economists
pansion and rising prices soon
get beyond the control of money
more
The money managers
managers.
complain
that
they
handicontrol laws
are
with
capped
that
and
weak
they
need
and
more
by
What
power.
is
need
the
they
effective
really
brakes
on
inflation which currency redemp¬
tion would provide.
What they
i
really
/
of economic forces which the dis-
is
need
the
restraints
cipline of the gold standard would
provide. The most positive countercyclical policy is to stop mone-
*
*
tizing
-
unproductive
debt.
The
most
convincing test of the
pie's
approval
peo-
con¬
an
easy-
to
shift
policy
emphasis
direct
which
influence
and
expenditure.
case
is
not
monetary
income
on
this
good example, be¬
a
complicated
a
However,
the situation
cause
to
provided
was
by
unit
which
destroyed
public confidence in the integrity
of
the
dollar.
Confidence
dollar is basic
eration
of
business
case
to
in
the
smooth
the
op¬
monetary
any
mechanism.
A
and
strong
be made in support
even
can
the easy-money policy imme¬
diately following the passage of
the Glass-Steagall Act in Febru¬
ary, 1932.
A careful analysis of
of
the
credit
pattern
of the
market
]■
free
ability of
our
by the redeeminto gold.
money
Deficit
the Managed
Government
be
even
private
listic
year
because
Banks
financing
disrupting than
the
of
monopo¬
government
the
banking system.
virtually forced to buy
on
are
securities
government
fixed
at
prices; the balance unsold is taken
by
the
Thus
The
inflates
simplicity
debt
the
case
monetary policies will work but
that tampering with the monetary
standard does not provide an at¬
Machinery for Monetary Policy
The second main group of ques¬
tions raised
by
a
author
scribed
banking system based
on
who
has
de-
business paper down to 1929 as
the worst possible system and the
subsequent
ment
monetized
debt
the
as
govern-
best
possible.
'
This
view
is
powering
based
the
over-
that
busi-
on
assumption
"
ness
debt is unmanageable and in-
flationary
whereas
government
debt is readily adjustable to the
financial
monetary
or
business
the
for
formulation
policy.
tions
The
of
government
money
effective
although
of this
manage
without
money
Ownership
of
Despite the
ernment
trend
of
economists
be
light
ques¬
ownership
and
gov¬
manage¬
for the
mixed
and
Federal
following
In times of
manage¬
Reserve
banks
reasons:
war
emergencies, the
banking system
or
of the
resources
becomes, to all
poses,
are
intents
and
pur¬
government financial in¬
a
on
aspects
many
machinery for formulating
implementing policies
are
always important considerations
in achieving economic goals. This
is not recognized in the "Fore¬
and
to
the
After
portance
"one
"Replies and Mate¬
of
indicating
monetary
the
of
im¬
the
policy
fundamental
as
deter¬
first
members but later the
bers
of
the
of
Board
mem¬
Governors
added.
were
for
reason
keep¬
ing the FROMC a separate body,
even
though they deal with one
of
instruments
several
control.
Were
concentrated
all
at
credit
of
control powers
single point, it
would still be expedient for open
that
a
of
special committee
a
its membership
of
the
have
representatives
operating Federal Reserve
Bank
operations
favor
in
are
arrange¬
ments, which enable an appro¬
priate, specialized body upon
which
members
(b)
devoted,
its
resources
its
(c)
channeled
are
so
earnings
excess
to the
are
government
(and its losses would undoubtedly
absorbed by the public treas¬
ury,
in
as
the
in
France
1931),
and
Bank
its
(d)
to
In
greater
no
peacetime,
extent
than
however,
more
prevail;
i.e., the central bank is not and
should
not
be
solely
a
fiscal
agency and banker for the gov¬
of
members
ernors
this
the
of
Board
the
of
other
action
Board
reconcile
can
and
take
to
at
later
over-all
The Treasury
initial
to
resulted from
established
finance
to
business.
and
The
commerce
lawmakers
wisely provided for
ownership and a mixed
will be forced to
broader, more em¬
and long-iun views of
the
to
bracing,
for
ment
banks.
the
An
balanced
Federal
ingenious
Reserve
well-
and
arrangement
was
adopted whereby the public (con¬
sumers),
banks
(lenders),
and
(borrowers) are repre¬
the
on
Federal
bank
boards
other
measures
of
Reserve
directors,
provide for
and
ap¬
that
sume
of
time
enjoy
A
proposed in
interest
political
control.
was
relatively in¬
body
a
of
Federal
To
or,
be
group-
the
sure,
this
system
in a board
free from dominating influences,
and it can hardly be said to have
implementation
of
has not always resulted
political
occupied^the
the
used
which
ence
that
all
and
the
independ¬
characterize
Court. However, I
private ownership
Supreme
believe
to
other
characteristics
course
of
pro¬
co-ordination
form
one
of
or
another
unity, but at the
price of making a banking and
credit regulating
body like the
Federal Reserve Board a political
body ancillary to the Executive
Branch
of
the
government.
The
temptation to
subordinate
eco¬
nomic to political ends under such
would
be
too
great
The proposal is danger¬
It would put too much power
ous.
into
political
the
gold
hands.
standard
with
Even
and
less
in
the
money
market
and
dangerous, too.
Federal
Reserve
powers
are
minants of
prices, production and
employment" (Part I, page XV),
it is implied that some mechanism
be
adequate but they have not been
used
effectively as a review of
needs
Federal Reserve policy since
policy; that the rules of the gold
1914
-
would
demonstrate.
Treasury
prevented
adequate
*
domination
*
use
two
on
major
occasions,
namely, the postwar periods, and
*
-
on
''
other
'20s.
occasions,
and
when
at
group
business,
ercise
-
the
e.g.,
present
the
late
moment
such
and farmer,
pressures,
labor,
restraints
the
upon
as
ex-
im¬
plementation of credit controls.
General
works
*
i
i
credit
policy probably
successfully in controlling expansion than in stem-
-
;
ming
more
deflation
or
stimulating
business recovery. The difficulties
of curbing inflation are
perhaps
more
political
than
economic.
'
Since
on
the
government
responsibilities
business
_
of
has
taken
controlling
fluctuations,.
political
to
purpose
had
standard
because
established
the
for
of formulating monetary
they
be
to
were
adandoned
mechani¬
too
balanced
of
should
exist
Federal
be
Reserve
the
serve
powers
which
maintained.
System
redeema¬
bility of our currency, we would
need a separation of powers,
The
both
private and government
economy,
require
sec¬
or
to
April
nomic
past generation require the form¬
of peace.
ulation
necessarily, special, and monopo¬
lized,
single-purpose
objectives
of
monetary
in¬
policy
volving discretion.
I
cannot
subscribe
view
the
to
that the rules of the gold standard
are
too mechanical and involve
discretion.
banking
the
The advent
did
indeed
administration
of
of
no
in
the
without
ends
hinderance.
check
better
our
The
The
more
the
rationale
torically
on
of
and
have
administrators.
always
dictator¬
needed
the
men
in
order
ending
Only
Kaufman,
Schwabacher
York brokerage
&
associated
New
Co.,
firm, passed
William A. H. Leonard
1971.
be
to
are
years
to
out¬
bonds may be
ranging
from
to
103%
100%.
Peabody Coal "Co. and its sub¬
sidiaries
own
lease
or
coal
lands
having recoverable coal estimated
at over
owned
million
by
the
properties
of
billion tons of which
one
989
over
are
Illinois.
largely in the state
group
certain
lands
These
company's larger
the Commonwealth
are
Edison
in
are
company.
The
other
of
companies
The
public
and
in
Chicago Metropolitan Area.
company's agreement with
the
utilities
Commonwealth Edison Co. to pur¬
chase coal extends through 1982
and, among other things, provides
that the utility for itself and its
subsidiaries
will
Peabody not
may
system's
purchase
less
purchase
than
and
requirements
electricity.
under this contract
produced
from
50%
to 66%% of the
up
coal
at
for
Purchases
from coal
are
certain
designated
mines
on a cost-plus basis, includ¬
ing in cost depreciation and de¬
pletion in investment in active
contract
net
mines,
investment
mines,
and
annum
on
vestment
amortization
in
closed
return
a
the
on
contract
of
5%
per
company's net in¬
balances
and closed
in
contract
profit of 15 cents
such
active
mines, plus
ton
per
on
a
coal
delivered. Payments to date under
this agreement was substantially
than
more
adequate
annual interest
the
of
to
the
pay
requirement
company's
all
on
long-term
in¬
debtedness, including the series B
The
William
partner
A.
in
Hazard
Moore,
Lynch, passed
also
company
substantial
amounts
railroads,
of
industrial
and at retail
sells
coal
to
companies
through its
own
subr
With Investment Research
to
The
is
Leonard,
Leonard
away on
&
April 14.
Chronicle)
Donald
—
affiliated
now
vestment
Financial
Mass.
Research
with
F.
In¬
Corporation,
53 State Street.
E. E. Mathews Adds
to
The
BOSTON,
Mullins,
the
staff
Jr.
of
Financial
Mass.
has
Chronicle)
Thomas F.
—
been
Edward
E.
added
to
Mathews
Co., 53 State Street.
present
Texas Income Shares
William C. O'Neill, Jr.
C.
Jr., who
until his retirement was a partner
in
William
C.
O'Neill
&
Sons,
O'Neill,
passed away at the age of 61.
With Walston, Hoffman
(Special to The financial Chronicle)
LOS ANGELES,
be co-operative—
the practice of independent ac¬
tion having on occasion
proven
Walston, Hoffman & Goodwin, 550
Hickey has joined the staff of
South Spring Street.
He was pre¬
with
Rvons & Co.
viously
FT.
come
Lester.
WORTH, Tex. —Texas In¬
Shares, Inc., has been formed
with offices in the
Majestic Build¬
J. Vance HoaglaH is a prin¬
cipal of the firm.
ing.
Bosworth, Sullivan Adds
(Special to The Financial Chronicle)
Calif.—William
sound
rea¬
1968
the
purposes
prices
away
R.
keep
15,
$1,100,000
(Special
the reasonable as¬
buying and selling
should
April
redeemed at 100%. The bonds may
be redeemed for other purposes at
suddenly April 9.
eligible securities by the sev¬
System
ending
$750,000
standing at maturity. For sinking
Moss
eral Federal Reserve banks of the
and
to
the
1958,
during the next four
$1,000,000 annually during
(Special
we
However,
judgment of competent
sonable
makers
for
to
on
assignment of control over open
market operations is based his¬
sibilities
policy
tolerated
Open Market Operations
mone¬
system,
Benjamin
with
William
sumption that
the
be
1956
will
$500,000
device
A
economic
encourage
Benjamin Kaufman
grounds-—but should be tol¬
greater are the risks and respon¬
of
can
15,
BOSTON,
erated "for the duration" only.
complicate
gold standard system.
(debt)
such
methods
central
tary and credit system under the
credit
and
or
of
payment
annually in each of the four
any
cal; that economic changes of the
the
the next five years and $1,100,000
ship could hardly be conceived.
dominating eco¬
political factor in times
Wartime conditions are
of
agency
will have the bene¬
sidiaries.
political
The
tors—and should not be made the
made
capital addi¬
in each of the three years
for
market
a
now
including
for
sinking fund which
a
bonds.
economy—the competi¬
market
bonds
of
check,
the public has lost its control of
the purse and a concentration of
monetary power could be used
but without such
should
tive
retire
tions.
fit
*
forces
to
expenditures
made
generating
achieve
would
to resist.
The
of Governors
period
a
complete
interests
concerned.
the
financial agencies which has been
organization
Board
we can as¬
tracted peace.
propriate representation of all the
Reserve
This should
in
will
we
be
to
customers
Treasury
yield
private
manage¬
the1
get
policy
has led to a temporary "accord"
but the prospects seem likely that
certainly take place if
was
at
this clash of
the Federal Reserve.
System
and
Federal Reserve
-
The
Reserve
of
in¬
results.
ernment; it should also serve com¬
merce, industry, and agriculture.
Federal
Gov¬
use
conflict may prove not to be fu¬
tile.
The public hearing which
the
and
on
control
order
in
stages
desired
of
the
credit
strumentalities
in the earnings and
share
owners
the
of
case
sit
is
annually
private business
present
for
company
fund
the
issue
outstanding first mortgage bonds,
series A, and to
reimburse the
years,
with government fiscal
as
of the
purpose
the
bankers
market and
touch with
due April 15, 1972
at 100% and accrued interest. The
by
The
operations.
I
which
publicly offered
$15,000,000 Peabody Coal Co. first
mortgage
sinking
fund
bonds,
ap¬
familiar with credit conditions
well
writers
are
performed
themselves.
and the money
as
should
committee
on
close
Halsey, Stuart & Co. Inc. on
April 23 headed a group of under¬
operations to be put into
hands
banks
Halsey, Stuart Group
Offers Peabody Coal
Go. 41/2% Bonds
series B, 4% %
There is sound
banking operations they are es¬
pecially qualified to perform. The
financial
government
serve
needs,
dependent
the
was
to
constituted
government officials.
Administrative
processes
and
powerful
a
control
Governors
bankers
or
as
credit
stitution; that is, (a) it is managed
sented
eco¬
dis¬
were
are
great public
necessarily
and
rightly put at the disposal
of the government, and the central
bank
(Federal
Reserve
banks)
business
qualified
At
propriately
of
was
legally constituted.
only the bank officials
ownership
ment
ap¬
FROMC
banks.
sub¬
of
well
of
ment, I favor the present private
con¬
this
on
subject and their judgment
rials."
competitive
draft
instrument
and
toward
fully
market opera¬
open
tions could be used
the
member
on
not
was
Only after it
that
covered
the
Federal Reserve Banks
is less likely to be biased by selfinterest
than
that
of
either
word"
is
monetary
students
should
throw
by
managers
than
to
ques¬
machinery
of
questions
no
nomics
to
final
directed
as-
government; it
that, planned control
sumes
more
needs
and
by the Patman
tionnaire pertains to the
ject,
effectively stated
prominent
*'J
is,
the
market,
slight that we will be
are
to
that
the
(framing the Federal Reserve Act
tained
our
in the monetary unit.
provides evidence that
conditions of relative political and
economic
stability
and
sound
has
*
in
dis¬
normal conditions should
This
than can competition in a
profit enterprise market. The case
-
convertibility,
confidence
deluded many into the belief
etc.,
;
of
losses
"
*
we
usual.
currency.
operation
rected more effectively to the so¬
cial objective of full"employment,
-
If
operations
reserves
preciated.
manage
1932
of
ism.
that management of the debt and
of the credit system can be di-
been
autumn
banks.
is
the
of
the
mone¬
Reserve
public
and
tized
has
Federal
the
a
mosphere congenial to the smooth
operations of any market mechan¬
*
*
to
change in economic
policy which threatened to shatter
Economy ;
which
in
presaged
Financing
deficit
more
control
exert
can
;
managers
collapse.
bank
market
of
can
■'
reasonable
how
Government
February to June of that
provides convincing proof
And
r
of
such market controls.
that the monetary policy was ef¬
fective until a disruptive political
.
;
such
and credit under the
choice
able
Without
be
or
situation
;
monetary
money
total
a
learn
chances
from
Government
.
competent
cipline
would be provided
;
-
that
judgment
without
disapproval of
public expenditures and new debt
.
gold
market test is possible
no
the
and
needlessly
manipulated
a
is
reserves.
check,
a
"pushing
"leading a
like
the
can
gold
on
like
was
or
'
more
standard
to
fiscal
'
to
and
of
constantly be
checked by the convertibility or
redeemability of demand claims
water"; that the failure
this monetary policy prompted
ex-
*
It
trying
that
investment
policy
string '
complete
as a
'
"controlled
gold
rules
The great virtue of the
decisions
money
monetary
been
horse
market
business
induce
generally cited
a
with
goes
understood
standard.
that of the early '30s.
recoveiy is
on
that
and
money
to
of
inconsistent and contradictory. In
the beginning the effect of open
cannot
contraction
sumption
seems
are
fear
example of general
initiated to check
policy
control
for
expansion of credit within bounds,
even under the simple and
easily
of
The classic
credit
has
employ¬
business
everything
depression.
It is
condi¬
a
full
contraction, with
falling prices, unem¬
failures, and
consequent
stimulate
and tne fiction
of
way
General credit policies
cautiously
causing credit
perpetual inflation
or
a
of
than
too
which government regulation and
,
become
life because of the fear which the
failure
tempted to review here
the pattern
43
i
have
pressures
to
seem
(1735)
DENVER,
Colo. —James
W.
Arrott, Jr., has been added to the
staff of Bosworth, Sullivan & Co.,
fifift
Seventeenth
Street.
44
(1736)
The Commercial and Financial Chronicle
Continued from
first
larger part
a
page
market than
the
Investment
Banking and
The
it.
sale,
and
Company I represent is in
contact with the capital
Its
agement
You
recognize the respect
find
will
current
him
conversant
such as
for additional working
problems,
principal business is
to assist corporations in financing
their
requirements for working
capital and plant expenditures.
capital arising from the necessity
of
financing
increased
inven¬
Our
tories and receivables
capital
is
underwriting
which
employed
of
security
issues
*
purchased, alone
are
association
with
the
in
in
or
other investment
banking firms and which security
issues, in turn, are resold, directly
and through dealers, to investors
throughout the country.
All
types
securities
of
in¬
are
cluded—mortgage bonds, deben¬
tures, preferred stocks, common
stocks, convertible issues, etc.
Such
securities
various
in
transactions:
of
types
handled
as
are
principal or agent; as public of¬
ferings or offerings to security
holders; or as private placements.
practically all types of is¬
the
of
need
the basis
on
and
current
prospective sales
in terms of present day dollars
and from the required accelera¬
tion of income tax
the
der
persent
payments un¬
law.
tax
He
of the further effect
aware
is
of the
depreciated dollar on the amounts
expenditures required for plant
modernization and expansion and
for plant renewals and replace¬
ments
as
compared
with
the
amount of depreciation allowable
for tax
purposes.
He is aware,
also, of the difficulty of retaining,
of
after
taxes, sufficient earnings for
these and other purposes.
are
served, I propose, for
brevity, to discuss the subject at
hand
in
only
industrial
its
relationship
First
Consideration
in
Financing
The
preservation
capital
consideration
of
will
structure
in
the
sound
a
be
first
a
investment
Among those who have not had
occasion to engage in public fi¬
nancing, an investment banker's
of
program.
function is sometimes looked upon
equity
being solely that of "merchan¬
dising" securities.
In some in¬
those of its competitors and other
approach to a financing
The relative debt and
the
of
compared
as
stances the banker is brought into
representative
will
capital
is
promptly.
before
needs
financial
planning
in the sale of
well
as
the resulting
fixed
same
the
advantage,
'
-
Insofar
as
our
cerned—and
I
•.r
f
the
be
to
con¬
state¬
ment
not
Care
effort to
the
to
from
com¬
overlook
the
the
The
cases.
leave
for
ues
is
company
believe
with
charges, and at
time
appropriate
r
Financing
on
be
stock¬
use
of
relatively low cost senior financ¬
ing to a reasonable extent and in
as
secu¬
rities.
Advising
an
holder's standpoint, of
be obtained
can
in
over-burdening
the
financing
become acute, the full ben¬
bases
companies.
exercised
with
pany
company's
a
efit of his advice
in
avoid
needed, and needed
When he is consulted
will
company
various
on
the situation only when additional
be
idea
suitable
open
additional
will
aven¬
financing, in¬
cluding bank credit lines for sea¬
sonal, self
liquidating require¬
ments, so that the company may
applies also to other substan¬
tial investment banking houses —
the opportunity to study and ad¬
of market conditions in
respect of
vise
issuer in
an
his finan¬
cial
planning is welcomed and in¬
no
obligation.
Investment
banking is highly competitive;
the building of a desirable clien¬
curs
in
position to take advantage
marketed
should
Gare
pany
its
d
general
formula.
handling
pends
a
specific
a
there
The
is
no
be
designed to
specific circumstances of
business
comparisons
will
be
made for you of the
provisions of
particular situation de¬
issue, interest or dividend rates,
prices and yields, and the various
asset, earning and market equity
upon
careful consideration
of all the facts and circumstances
obtaining at the time.
ratios
A
of
issues
thorough understanding of a
company's operations, its pros¬
companies.
pects, its future requirements and
its
points
of
weakness
and
company
cussion will
as
of
comparable
Out of study and dis¬
come
to
decision by the
the
prospective issue.
strength, as well as a knowledge
of security market
conditions, are
the issue is to be
essential
terms
For
of
the
instance, if
form
a
a
to
those
constructive
financing
We
suer.
who
would
do
job of formulating
with
program
view
combined effort
the
is¬
an
matter
as
a
debt
a
tional
senior
net
assets
un-
securities
to
meet
be
permitted
as
earnings
reasonable
equity.
tests
or
relationship of debt to
Provisions using earnings
as
basis for
a
issuance
of
view
we
usually
as
because
restricting the
additional
their
securities
undesirable,
effect
be
to
debt
in
may
increases
in
anticipation of reduced earnings,
to prevent the
financing of
expenditures for- cost reducing
improvements
provements
when
improve earning
In
debt
a
security,
light of the
company's projected ability to re¬
considering
its
im¬
restore
power.
security, it follows, of
course, that a default
occurs
failure to pay interest
when due. However,
upon
principal
or
do
we
not
generally favor certain other de¬
fault provisions such
as, for in¬
stance,
covenant
a
working
capital
to
at
maintain
some
pre¬
scribed
on
not
otherwise
impair the company's
ability regularly to pay its in¬
terest, sinking fund and maturity.
type
of
voluntary
refunding,
to
as
I
are
to be
avoided.
into, or
asked for, an agreement with
issuer giving us an exclusive
preferential position in future
even
financing. There is
the
of
part
consult with
of
us
obligation
no
any
to
company
obtain
or
actions
which
our
it
ap¬
pro¬
to take.
poses
ment
banking advice in respect of
problems which
arise
subsequent
to their
financing. The investment
banker
is
market
developments and, if he is
in
close
touch
familiar with the affairs of
in
the
issuer's
of
source
many
for
with
is¬
an
will often make suggestions
suer,
interest.
satisfaction
companies
advice
time
have
after
It
to
is
a
that
us
returned
time.
the
purpose of
emphasizing
security issue is designed—
functionally
designed.
By
the
same
token, the pricing of an is¬
a
issuers have done their
vestment banker explore with the
issuer the design of sound and
and
there
is
appropriate
study
detailed
the
ment
issuer.
The
that
investment
men
in
deluged with
your
banker
knows
position
are
paper work for your
Also in the
the
case
of
a
covenants
senior
se¬
relating to
incurring of additional debt,
staff and his approach will not be
payment
through
securities and the
taking of other
questionnaires.
At
your
of
dividends
on
junior
convenience, he will want to visit voluntary action.
Properly de¬
your
plants, see your products signed, such provisions of issue
offer a measure of protection to
manufactured,
learn
how
and
where they are
sold, and talk to investors against possible down¬
operating executives in an en¬ grading of the security, and are
deavor to understand what it* is
that produces the
figures in your
income account and what is
rep¬
resented in the figures in
the relative security
balance
are
your
sheet.
He
will
want
to
hear of your plans for the
future
and
to review
your
projections
and forecasts in the form
you have
them available in order
to see
your company as you yourself
see
usually taken into consideration
by institutional investors and
by
statistical
agencies in assigning
ratings which
published for the information
of investors.
Such provisions of
is
sue
not
arrived
Information
to
as
the
the
at
arbitrarily.
readily available
is
basis
which
on
financing
involved, and
expenses
ample
other
prop¬
erly
designed, should be in the
best interest of the issuer in
that
they will enable the issue to
tap
The
increased
opportunity
comparisons,
consult others and
cor¬
with the low interest cost of bor¬
rowed
funds
and
the
deduction
of interest expense in the calcula¬
tion of taxable
have often
corporate income,
encouraged the
debt securities rather than
of
design of such issues in respect of
sinking funds and other provisions
of
issue,
including
restrictive
covenants, to gain acceptance by
institutional
investors.
At
influence has been
times,
at
varying degrees both in public
offerings and in private place¬
ments.
in the
As
of the design
case
of
a
program and a particular issue,
the
advice
of
the
investment
in
of
respect
method
of
offering and the issuer's selection
between
the
alternative
pro¬
cedures will be influenced by the
circumstances
particular
surrounding
the
case.
attractive
rate
be
may
found
through
a more
other
in
the
terms
market
public offering.
a
There
issues,
and
other
are
nature
of
which
may
factors
issuer's
an
have
in
the
business
determining
a
influence. Certain operations with
features
more
readily explained to
few experienced
a
the
to
may,
at
successfully fi¬
by private placement. Also,
times,
be
nanced
for
investors than
public
general
more
instance,
in the
of
long
a
con¬
based
engineering
record
involving
of
case
projects,
upon
estimates
earnings and
time commit¬
ment, private placements may be
the logical procedure.
There
are
advantages in the
public offering method which in
particular instances should not be
overlooked.
benefits
These
of
include
widely
the
distributed
ownership of
a company's securi¬
the support resulting
the direct financial interest
ties, such
from
of many
as
geographically dispersed
investors,
and
the
opportunity
which may well be afforded to
an
issuer to repurchase the securities
discounts in the public market
times of higher interest rates
at
at
and
correspondingly lower bond
prices, to satisfy sinking fund re¬
quirements or to employ excess
funds.
Neither
"private
"public offering,"
nor
defined
the
in
the
so
discussing
As to
placement"
such, is
as
Securities
Act
or
methods
securities, to a limited number of
buyers who purchase for invest¬
with
Such
a
without
or
an
ing within
Act
the
as
com¬
provisions of
exempting
pros¬
from
the
registration
included
ment
in
and
procedure
the
depending
circumstances, require
the
agreements
volving
far
public offering."
The term "public offering"
is
applied to an offering of securi¬
state¬
and
may,
"transactions by an issuer not in¬
any
registration
a
prospectus,
and
different
in
upon
loan
indentures
form
from
not
those
required for a public offering.
However, it is fair to say that the
private placement procedure is
generally simpler, from the stand¬
ties, usually but not necessarily
through underwriters, to the gen¬
eral public including any and all point of preparation of documents,
types of buyers without limit as than is the public offering pro¬
number
lic
qualifications. Pub¬
or
offerings
under
require registration
Securities Act, except
the
certain
transactions
securities,
exchanges
holders
and
as,
with
existing security
by railroads,
banks, municipalities,
do
not
concern
in
us
Registration Data
instance,
issues
and
Time and Expense of Gathering
certain
such
for
cedure.
etc., which
the present
discussion.
Some
issuers
are
.
concerned
about the time to be consumed by
officers and staff of the company
in gathering data for registration.
In
experience,
our
issuers
have
feared. Many have found the self-
to
The
private
proportions
This
of
in
recent
development is
two
factors,
reflection
a
i.e., the effect
registration
the
years.
of
the
In
institutional type investors in the
se¬
debt
of
any
among
procedures,
specific
the
type and amount of
If the issue is of
which
does
what
tional
investors,
is to
be
depends,
a
where
upon
a
found
not
decision
case
other things,
the better market for
issue
as
-
state¬
the
being of substantial bene¬
registration statement and
further
the
period
twenty-day waiting
entails risk of a market
change before commitment.
Increased taxes have, of
course,
reduced the investable income of
the
individual
investor
from
be.
for
registration
of
choosing between the two fi¬
nancing
in
demand
market
the
fit to the company. It is true that
the time required for preparation
Act, and the in¬
importance of institutional
type investors in the composition
the
veloping
of
Securities
requirements
examination effort required in de¬
ment
creased
compared with
otherwise
of
a
placement method
change which has taken place in
relative importance of indi¬
would
the distribution
equivalent to that which would be
has been construed
suer,
ties and
pectuses. In
offering,
limited
the
marketing of senior corporate
physical
investment
contemplation of
resale.
securities.
as
the
private placement,
the lenders, in some cases,
may
require information substantially
ment and not in
appropriate
to
of
of financing has risen to substan¬
to arrive at
refer
standpoint
volume of papers involved. Public
of the Securities offerings require, in addition to
registration procedure,
the
Exchange Commission. The the
term "private placement" is gen¬ preparation
and printing of in¬
erally applied to the sale of an struments embodying the terms of
issue of securities, usually senior issue, the use of engraved securi¬
of
I
the
simplicity, private place¬
the advantage from
have
regulations
offering available to issuers, it is
that
ments
tial
Rise of Institutional Type
Investors
it
the purchase of new
What Is "Private Placement"
the
vidual investors
commit¬
forward
which, together with other
factors, reduce their interest in
work
in
have entered
companies,
substantial
without
character
be
in¬
ments
technical
the market for corporate debt se¬
curities has influenced also the
such
into
struction
institutional
a
so,
well
may
institutional
If
vestors, particularly the large in¬
surance
equities
requirements.
The
placement
financing capital
the media for
as
of
use
if
to
mutually satisfactory terms.
Before
demand for
private
attrac¬
terms
on
borrower;
found that such time consumption
is substantially less than they had
curities.
issue,
subject to high income taxes.
porate debt obligations, combined
to
I have gone thus far into detail
curity, it is desirable that the in¬
and
not
institutional investors
issue
the
to
considered.
on
banker acting as agent for the is¬
seek invest¬
banker, with ultimate de¬
cisions, of course, resting with the
company
the part of the
substantially the demand
tive
and
entered
never
any
or
insurance
corporate debt obligations
the part of
pre¬
prohibit debt
invest¬
on
creased
for
action
which
covenant
restrictive
life
in
entire
the
'
the
viously mentioned. Non-callable
issues, and redemption provisions
so
securities.
savings
deposits,
and
the
growth of pension plans, have in¬
as
prefer
income
considerable
and
may
be a temporary drain
working capital which would
We
from
a
tax exempt
placed
groups
banker
other
obligations
and
security
market conditions then
prevailing.
issuing
are
figure, with the issuer
hazarding a default through what
that
the
such
needed to
are
trusts
increasing tendency of in¬
dividuals to seek safety of prin¬
cipal, the growing magnitude of
the
savings
of
lower
income
increase
through re¬
through the
sale of additional junior
securities,
the objective being to preserve a
tained
determined
comfortably,
basis
sound
a
should
creases
for
in
how¬
contingencies, and appropriate in¬
its maturity and the amount and
of a sinking fund will be
pay
on
Certain companies
of
manner
exercised,
the issuing
ever-changing
conditions.
Thus, within suitable limits, lee¬
way should be provided for addi¬
time.
Detailed
employment will result in sale of
personal
and institutional investors not en¬
The
e r
proval
or
sav¬
be
must
to leave
com¬
sufficient latitude to conduct
ever,
relation to the competition of the
issue in the capital market at the
ible, financing plan
issue of
securities,
reduced
the
of
of
extent in
effect substantial
to
as
ings in interest cost to issuers.
in any other service business.
In designing a
long-range, flex¬
Thus,
income
funds
invested to
isfactory performance is essential
as
the
and
exemption
on
through sat¬
a
tax,
the company at the particular
pe¬
riod of its development, and in
tele and its retention
as
business
sound
We have
If, and when, the decision is to
finance, the individual issue to be
meet the
anyway
taxes.
investable
joying
various types of securities.
with
be
do
man¬
automatically made in favor of a
individuals
corporate
yields less attractive to in¬
income
1952
Thursday, April 24,
.
.
public offering. If the issue is of
a
type acceptable to institutional
investors, the question will be
whether the volume of funds in
institutional hands then seeking
made
policy.
I could cite many instances where
the provisions of issue have been
or
banker's
would
good
and
Program
to
issuers.
what
only
encourage
While
suers
have
such
will
tionship.
with
policies,
vestors, especially after individual
issuing
company
because,
so designed, such covenants
represent
the confidential nature of the rela¬
intimate
markets.
He
broadened market
a
bond
matter
syndication
of security issues.
Lowered interest rates, reflecting
national credit conditions and
be
the
"Private Placements"
the
investment
otherwise
becomes available without cost to
when
from
Such
case.
the
of
would
.
a
particular
prospective
at
the
variety
interest
the
or
time.
type
institu¬
decision
is
Registration
ment of
involves
the
pay¬
registration fee, unim¬
portant in amount, and the costs
of
a
accountants,
and
similar
counsel,
services.
trustee
Many
of
such expenses are also incurred in
private placements. When all such
costs
are
realized
private
analyzed the economies
in
this respect
by
placement procedure
the
are
Number 5110
Volume 175
.
,
The Commercial and Financial Chronicle
.
of minor importance in relation to
other considerations, pro or con.
Another item to consider is the
investment banker's compensation,
services
the
with
varies
which
rendered. When the banker is act-
ing
agent for the issuer in a
as
private placement, the fee will, of
be less than when he is
to take an under-
course,
called
upon
writing commitment and when
widespread distribution of the securities is involved. In any event,
the fee will be negotiated with the
tendency for an issuer to discuss, have been suggestions for simpli- equity funds through sale of
and sometimes arrange, additional fication of the registration re- mon stock.
Likewise, in confining the disregistration of securities meeting cussion to public offerings ♦ and
This brief review of some of certain tests, such as for instance, private placements, I have not inthe considerations entering into 5tock exchange listing. Some sug- tended to minimize the advanthe choice between public offering gestions would involve changes tage, in certain instances, of ofand private placement indicates in regulations within the frame- ferings to security holders in the
the basis for the statement that it work of the persent laws; °ihers form of rights to subscribe for
is a matter of specific cases and would require amendment of the new or additional equity or conconditions. At times and for cer- Act*
vertibie issues.
tain issuers it seems clear to us
We do not advocate nay exMy remarks have been directed
that better terms for the issuer pansion of the present registra- principally to the subject of prohave been obtained in public of- tion requirements nor elimination vidmg additional capital for cor-
ferings than could have been done of the exemption of private placein private placements. At other ments. We do see merit in the
times, and for other issuers, the idea
of providing exemptions
with the profit margins opposite has been the case. In- from registration along the lines
issuer in the light of readily avail-
fees in
comparable transactions. To those
information
able
familiar
and
industry
in
compensation'
will
seem
,
with
connection
On
over-ail
Law as !t Affects Choice of
sW^e'nt^
ner
nWnHnal
As
p
^vear
avafnrt
.
.
Public
or
the
$100
perplexities
financial
Wiv
...
.
of
side
issuers,
seives§
some future
date.
An impartial commentator on fi-
in
his discussion of the sub-
ject.
perhaps
concern
your-
now
0«eidngs
stands
nub-
certain
excep-
reauire registration-
private
.
whether
determine
public
offering
2e
Th
t
used
a
therefore
and
not
a
or
Some issuers,
through a misun- registration requirement
is inderstanding, or lack of experience, voived has begn the nu'mber of
have
an
apprehension of their investors to whom the offering is
liabilities
Securities
the
under
be made The figure of 25, with
Disrsg&rding outright fraud., some variations depending upon
with which we are not concerned,
circumstances and size of a
let us look at this situation. The
particular offering has been used
Act*
issuers for recission
of
liabilities
as
sort
0f
arbitrary
an
dividing
under the Act may ijne
arise if the registration statement
Agreeing that the principal obdamages
or
"contained
of
state
untrue
an
material
a
fact
the
make
statement
omitted to
or
material fact required to
a
be stated therein
or
necessary
to
statements therein not
liability is- not
applicable if the issuer is able
to sustain the burden
of proof
that it had reasonable grounds to
believe, and did believe, that the
misleading."
is
suggested
that
Chicago & Eastern Illinois
,
t-llicago & tastern Illinois
thinking
The
jective of registration
uninformed
tect
and when such securities are being sold only to informed inves-
erence as to dividends up to $2.00 now under construction at Kevil,
a share annually, cumulative only Kentucky.
The location of this
"In- if earned. As of the end of last latter TVA plant at Chiles was in-
not believed
tended
that
was
that it
was
numerical
a
tion be applied
it
is
in-
ever
limita-
to the term
"in-
If the intent of
formed investor"
the law is to be
to pro-
investors
fulfilled, the
crux
*ormec* investors" might be reyarded as including all experienced organizations purchasing
securities for investment, such as
insurance companies, banks, uni-
accumulations amounted to
$4.00 a share. Of this, $2.00 has
been declared in cash, payable
quarterly this year, April 16, etc.
year
was
0f
the
is not the number
matter
tions' other Professional admin- on the closing market price of the
lstrators of funds, etc. There are. common on the day the dividend
?*■ c°ur£;e> a ouniber of points of is declared.
terminology and definition to conThe accumulated dividend on
sider, put it is believed that the 383,751 shares of Class A stock
amendments could be designed outstanding comes to $767,502. The
whi.cb w?u\d better serve the two common stock closed last week at
hasic principles of the Securities 18%, compared with the year's
Acf—the requirements for ade- high of 19. Taking the common at
^uate disclosure and the protec- last week's close it would re'quire
tion of uninformed investors.
the issuance of 40,933 shares to
Such amendments would be in satisfy the Class A dividend claim,
the interest of many issuers, en- Any fluctuation in the price of
abling them to issue securities the common in the interim before
under simplified procedures and declaration of the dividend (if apto tap a susbtantially larger part proved by stockholders) will nat^
of the market for funds than is
now
vate placements to limited numthanll%Thisdoes
bers, are today excluded from op- more ™a" 11%..This does
of
purchase of a substantial amount
of desirable securities.
expert, such as, for instance,
of accounts by
certification
the
auditors,
independent
also
and
limits the time within which action may be brought which would
involve the issuer in liability.
issuers
Some
the disclosure
may
hesitate
of business
at
details
required by registration and may
that
concerned
be
certain
in-
investors.
The
fact
remains, however, that
companies in highly com-
many
petitive industries have not found
registration harmful to their operations
an
than about that
more
of thoroughly
portumty
number
down
of
a
amounts
standby
nf
01
rpTiSrptfnn
Thic
lssuer-
-
^
f°rmeci> without registration. This
*
*
*
a paradoxical situation, particjn using the example of debt
ula^ wh,eri
w considered that financing to illustrate certain
?u?h re?le may be made by an points in regard to the design of
,
mf°rmed to a large number of
investors at the very
a
security issue and the selection
myethod
'fee,
^Thfpersent
of the
not
mean
for
mniv
•
Y.
1.
the detriment of
j
money as
a
m0ment
to sue-
use of a debt instrument
to.to the exalus'on
Preferred
.
of
agreements pre- double standard, of the present
viously entered into is also a con- situation. These have ranged from
vate
cases
where
a
pn-
,
.
by Mr
road
..
.
stockholders
Roddewig, President of the
jn
snnmrn
annually to the electricplant ?t
Joppa and for movement by river
tame
'pTnl
traltic poten
Chicago & Eastern IMnois is ob-
company's
lfneT aZunted
to
2 750 000 tons
'
'
connection with the pro-
the one extreme of requiring reg-
a+
a
d7
confer-
DriCe
somewhat
above
«£* ft aphr!^ ^ equivalent
t
f
operation.
such
stock
couid
be
This
required
heavy capital expenditures on the
property and purchase of a large
amount of new equipment. As
part of this program the property
Chicago Analysts to Hear
CHICAGO
Warner,
111
Rawleieh
—
Chairman
of
the
of the Pure Oil Company
Board
will ad-
Investment Analysts Club of ChiCago on April 24th in the Georgianf
R00m
0f
Carson,
Pirie
Scott
&
oil company. He will be accompanied by R L. Milligan, Execu-
became fully dieselized in 1950. p
vice President Ravnor SturIt was further pointed out that, tive Vice-President, Raynor Sturexclusive of borrowings, cash ex- gis and Douglas Campbell.
o£ offeringi j do penditures
one
L
sideration. In
company
naturally had to make substantial
improvements to the property,,
and particularly in its facilities at
Joppa. It was brought out that as
a result of these expenditures the
Company. Mr. Warner'will discuss the oil industry and the Pure
1S
n
.
effect
these developments the
fjff r? q^t10n~
^
they may be needed in the future
The
plant being constructed by a subsidiary of a group of public utility companies at Joppa, Illinois*
This plant is also being constructed to supply power to the Atomic
Energy Commission plant. Joppa
is served exclusively by Chicago
& Eastern Illinois. In line with
tL
°^a]nUcnes
purchasers for investment, may as I hope you would, specifically itable
ran~ts
arrangements,
amounts
also discussed the
generating
power
dress the luncheon meeting of the
situation works
or
T ?
common stock.
There is a time
issuers by denyartd nlarp for parh
a<?
well as for
ing them the combined benefits of dX i«nes or nreferreri stocks
and with interest to run only on the two methods of
financing. In p™Lrtihle into common stock
the amounts borrowed. The at- order to avoid
registration, an is- In fact as some of my audience
tractlveness of such standby ar- suer is required to negotiate for
knowwrhaveadvocatedin their
Tangements has decreased some- the sale of his issue to a limited
™rt7c'u7ar S
use
of
xvhat as a result of the relatively number of
purchasers.
cmvertiWe
nreferred
stock
as'
greater increase in short-term, as
Many, many pages have been
aHvantasp of nrovirtcompared with long-term, interest written on the pros and cons of
"=ed"d fa„da at relativelv low
rates, and as a result of the effeqt private placements and public of!„d
a
vehMe to nrov
of the excess profits tax on the ferings.
Many suggestions have ?h™u„h nossibTe future
cost of corporate borrowing.
been made to cure the inequity, or -ion- f0whe issuance of common
Hnwn
The letter
large steam
on a
valuable and calculated to change the character
f s+tqr® ^nvnJfr^iITv ?l the r<Jad from a P.arg^nal oxle
^S wnfun cniiS
°ne of mo.r.e consistently prof-
SU6f- °f SUch securities is deteri" gest the
-fnirg»
take
its line in South-
not ap Ch cago &^Eastern Illinois is_ob
P®®£ as a too important dilution vious when it is realKed_that in
universities, trust funds and sav- suer's point of
ings banks—would require regis- elusions
and
tration.
would be hlghly^
Aa
JJS wherlbv thev6 couldrein
consideration
the
in-
time when the condition of the is-
enecx
in
notap-
posal was particularly interesting.
jje brought out the point that for
view. Your con- SOme years past the management
recommendations bas been engaged. in a program
if
10
participate
If I may take the liberty of suggesting action by the Controllers
—and to illustrate the point, let Institute, it would be that it study
us call them insurance companies, this subject from the security issame
defSe treffecra
aesiraoie
to
formed and experienced investors
formation, as for instance the
terms of important contracts, will
directly benefit their competitors.
On the other hand,
offering to
on
^e'^ropLef ope'ratioT wfll taSS? ofXsVnZ
ranee ot tnese new
provides protection to the isAn offering without registrasuer against liability in respect of tion
can
be made to a limited
statements made on the authority number of uninformed individual
an
enable mines
J"?1}*SC7fi
iLi
mi^"num of 3 500,000 tons of coal
L'tsto^s orisTot
Act
fluenced largely, by the offer of
the C&EI to provide a rate for
rail-barge delivery which would
It is proposed to pay the remain- ern Illinois to supply coal
vers^es» pension trusts, founda- ing $2.00 in common stock, based competitive basis."
available to them through what, but at least 1the calculation
but the characteristics that can Private placement. Such a change give? a roU;ghid<»a pf what_ may
fairly
be
said
to
determine also would be in the interest of be expected. The common is now
were
true and that whetheran
the many informed investors who,
no such omission. The "informed."
by reason of the prevalence or pri- ™at
Proposedhperation win
statements
there
Securities Act
It
tors, regardless of number.
As the matter
..
the expres^
penny-wise and pound fool-
nancmg methods used
ish'
A Suggested Amendment to
that
of
and other matters may only
sion
made.
have
arisen in applying the law as it
sbould
be apparent at
In conclusion, I hope that I
contributed something to
your understanding of the function of an investment banker and
that you may be more likely in
the future to consider the help
which he is equipped to provide
in connection with your finanemg problems,
have
Offering
An(J n£)w my final topic_a few
o£
advice in respect 01 provisions 01
issue
porate purposes. I will not impose
further upon your time today to
discuss the problem, equally lmportant m some instances, of re-
subject in itself,
a
,
.
The handling of such
situations, including provision for
the sale of securities to furnish
funds required by principal own¬
ers as, for instance, for the payment of inheritance taxes, is a
companies.
atlects the choice between public might profitably be directed
At a special meeting on May 9, structing or preparing to construct
this
dif- offerings and Private placements. toward placing of public offerings stockholders of Chicago & East- several large generating plants on
il interist A need for clarification exists as on even terms with private place- ern Illinois will vote on a propo- the Tennessee River. Later, TVA
Der
w
,
Private
cog.
25-year bond, for e
p
,
underwriting fee of, say 1%
a
an
family owned
investor to whom the offering is
..
subject of underwriting expense
In
or
handle financing in either man- Sky laws of certain States—that
appropriate to consider the
is
capital
proprietorship
in the persent Blue
prepared to recognized
are
of
in closely held
as "the issuer chooses after is, first, by type of security and
evaluating the considerations.
issuer and, second, by type of
.,
,
vestment bankers
tention
the ner
on
'
.
It
for
payments
the amount of such
other services
low side
to
as
comr
with the previous quirements and exemption from
financing
lender.
45
(1737)
for additions and bet-
terments to road
and equipment
xT
Changes Firm Name
since 1945 had amounted to over
u
PASADENA< Calif.-Van Den-
ot tnese neavy casn outlays tnat burgh & Karr, Ine., of Los Angethe company feels that it would
.6 06 *
'
'
f.
be inadvisable, if not impossible, les, announced the change of the
to pay off the entire Class A divi- firm name to A. S. Van Denburgh
,
^
dend in -cash, and has therefore & Co. and the removal of its ofcome up with the alternative pro- „
,
„„ „
_
...
.
P°sal to Pay half of « in stockof Particular interest to stockholders were Mr. Roddewig's com-
S
S
°
Pasadena.
,
Euclid Avenue,
,
ments on the c,oa.1 situation and
, .
11/1111 o R
j
outlook. He said, in part: "It was
Jom VVaddell & Keed
felt that a very ,large new market
^or Southern Illinois coal would
LINCOLN, Neb. — Elmer. E.
becoma available by reason of Qraff Raymond & Graff, Merton
„
st0ea™s f^^^tempTated
p0^er plantf. then contempiatea
R* Lane, Charles W. Otis, Clarar,j
O. Rosenberger
R511
d B 11
n
issues, whether
ld under the market conditions
operation along the 9^° ence
a
even
where the consent of the public or private, to exemption
then prevailing.
In other situan
^
,
lender is not required as a con- from registration so broad that it
B
.
ly» about two years ago aiscussions Waddell & Reed, Inc., Contmental
dition of an increase or refunding might defeat the Very purposes of tlons» ^ bas been appropriate to were
bagHJ Vltb the Tennessee
Bank Building
of the debt, there is a natural the Securities Act.
In between assure provision
of additional Valley Authority, which was con- National Bank Bmiamg,
placement
has
been
made,
istration
of
all
fv aboTt^yea^ago diTc°ussions TraVf
.
^
46
(1738)
The Commercial and Financial Chronicle
Continued
ing
sufficiently
strong
earning
and asset positions as to
qualify, the direct placement has
Direct Placement of
Corporation
Logical Development
Loans—A
importance.
been
9
page
is
power
jrom
ample,
benefit.
unless
artificial
some
Under
Moreover,
restriction
great
a
is
placed
or
the
borrower
ing
clear that in
men! and
municipal bonds on the
They are not available for
other.
1906,
but starting
of
the
had
these
of
assets
to
for the
(1)
aggregate of pension funds
others
properly
be
which
to
the
asssets
savings institutions, the last
percentage figure would be con¬
siderably higher.
This is most
important since it is probable that
the current rate of growth
(3)
supply
was
seek
a
funds
to
profitable
more
outlets.
in
a
sound
cult
(7)
funds
riod of time
6.50%.
For
1950,
however,
triple A
was
These
of
(1)
providing a better
rate of return, and this is further
evidenced
by the use of their
be
Securities
which
Act
are
as
those
in
some
it
as
now
generally
which
stances
(2)
where
this
has
lower
expenses.
There is
buy back the issue at
stands,
in future years,
helped
contributed
discount
a
practice which
a
and
printing; the
with
its
attendant
the
uncertainty
and
the
bother
in
to list
the
market
of
risk;
redemption
some
on
risk
listed
Of these,
the
and
rect
focus
on
the
method
of
it
would
be
of
the
very
also may
greater.
be
the
small
large
except
out in
pointed
corporation
bulk large,
saving
can
potential
view it from the angle of various
both
to
underwriting fee would
high and other expenses
be
to
advantages
corporations,
should
case
that
di¬
helpful
it
the
placement to best advantage,
perhaps
rating is avail¬
no
apply
small
that
tainty of a commitment are prob¬
ably the most important.
>To
above
and
uncer¬
This
can
be
hence
be
the
much
exceedingly
important,
interested parties.
for
years
that
the
(3)
chief
so it must be said that
those small corporations hav-
The
opportunity
of Life
Public
tion
than
is
usually possible in
Private
-(In billions of dollars)
1906
Public
Total
able
in the
22.0f
4.2f
26.2f
13
69
11
1916
5.5
43.4
5.3
48.7
13
104
11
1927
14.4
81.5
28.0
109.5
18
51
13
1950
64.0
125.1
219.1
344.2
51
29
19
Net
long-term
end
and
of
Private
issue
year
having
(including
unincorporated
fGross
Table
debt.
an
bonds
Debt:
businesses,
Public
debt
II- -Savings
All
private
original maturity
and mortgages)
including
includes
of
net
one
debt
corporate
year
or
plus mortgage
farms.
more
debt
outstanding
from
of
the
date
individuals
and
Net
Long-Term
Savings Institution
Assets
Dec. 31
1906
1916
not
are
readily
as
Long Term Assets
dollars)
11.5
1950
As
%' of Debt
at
later
a
to
date
make
a
vestment
should
T1919
cm pa-ies,
figures.
arise.
26
5.49t
6.48f
38
4.57
5.04
83
2.62
2.89
banks,
opportunity
attractive
the
the
in¬
funds
same
Not
least
im¬
mar¬
ketability is the corollary of one
advantages attributed
to a public issue by the invest¬
ment banking
fraternity, namely,
of the great
opportunity
to
additional
at
date
purchase
amount
later
a
at
if
an
discount
a
conditions
and
savings
and
loan
to
this
adding the
in it.
engage
Moreover,
several trustees of
pension funds
have
also
taken
steps
recently
become
to
volume
of
directly placed
corpo¬
compared to the
as
invest¬
an
certain ele¬
a
satisfaction,
if
nothing
particular item.
question of marketability
The
total.
of
Direct
figures developed by the
Financial Analysis Section of the
a
that
appears
during
the
period from 1934 through 1939 the
percentage
of
placed directly
23.5%.
approximately
figure
increased
then declined during
to
war
an
five
was
This
somewhat,
the
issues
corporate
1943 through
years
of
average
1946
years
however,
29.0%.
acterized
For
1950,
be
char¬
period
in
which
there occurred the largest volume
of
capital
new
history of
centage
our
rose
formation
in
the
country, this per¬
on
the average to
46.5%. In 1950, it was 51.2%.
The
requirements
bidding
utilities
free
a
can
readily
has
complete
in
the
public
has,
of
these
from
is¬
which
choices
and
suers
as
are
en¬
As
market.
of
clear that to
seems
extent than
formerly
investment
market
come
greater
a
and
have
we
that
has
an
be¬
largely institutional in char¬
acter.
If
institution wishes to
one
dispose of
sizable
a
block
of
se¬
curities, it is exceedingly difficult
to accomplish this objective. un¬
less
other institutions
(2) The
where it
it
issue
an
influence
This
all
feel
may
or
that
major part
a
control
or
rela¬
investing in¬
conditions
be
without
of
undue
exist.
may
practical
founda¬
Actually, the lending insti¬
tution, in those
is
the
criticism, which has been
quite frequently, appears
heard
to
owns,
owns
only
cases
creditor
a
primary
in which
and
fined
to
no
holds
its
desire
return.
has
has
been
a
being
to
made
con¬
to
In those
ment
of
sented
power,
cases
the
by
financing,
that the
see
placements
both
its
prac¬
of
se¬
advantages
disadvantages and that not all
advantages or all of the
disadvantages are on one side and,
the
in
fact,
various
of
them
be
may
present and of importance at dif¬
ferent times.
is
public issuance of securi¬
subject
vantages,
for
requirements
been
of
seemingly
disad¬
undue
time because
some
Act,
to
has
as
suggested
of
the
it
certain
Securities
would
be
ad¬
visable to explore these particular
with
requirements
eliminating
pear
of
to be
necessary
experience
view
a
that
any
and
do
not
to
ap¬
that
this could be
protection
done and
to
the
still
public
which the Act contemplates.
lieve
taken
of
banks
banks
long
10 years.
as
importance, how^
ever, to the management of indus¬
trial companies would be
the im¬
pairment of management function
which
would
would
be
involved.
to be
seem
advantage
freedom..
for
no
There
compensating
the
loss
of
this
.
I have endeavored to
point
out, the present system has merely
:
evolved out of the investment at-
!■'
munity and
been
a
which
process
achieved
by
simple
I be¬
with
information
as
as
much in¬
possible,
shortening the waiting period,
development of a pro¬
and to the
cedure
.
;
com-
has
1
evolu-
'
tion.
It
is
likely
that
the
interplay
supply at a freely '}
competitive market will doubtless bring further
evolutionary de¬
velopments which may improve
the
present system for financing
industrial companies still further,.
This is the free
enterprise system
upon which we
have relied and
under
which
achieved
our
economic
we
have
present
much
upon
as
and
;
»
remarkable
development.
The
in¬
terplay of these forces should
relied
*
primarily
encouraged
be
as
possible in the confident
>
belief that they will
bring about
further improvements in our fi-
\
nancial
be
process.
hampered
straints
unless
compelling
I
They should not
by
artificial
re¬
some
reasons
believe that
very
,
strong
are
present.
trend of re¬
one
cent
significance and importance,
however, may have a tendency to
overcome
certain
more
of
This
vantages.
the
and more
is
the
disad-
fact
•
that
competent invest¬
should
be ment banking firms are injecting
given to sinTplifying the registra¬ themselves into the direct place-
to
:
mosphere and its shifting currents :
which have characterized the
past •
two decades.
In short, the direct ;
vestment
in which
offerings
can
Suggestions
be
lidps
along '^these
repre¬
have recently beerrmad&'by
voting
personages
the permissive investment
groups
Of far greater
in¬
desire
or
which, in some instances, may
have, maturities running for as
the
in
-
oqpsideration
made during the waiting period.
is
are
by
ment
or
having
Act of term loans which
in the light
ameliorating
the effects of others to the extent
retain
important problem which
would, arise
in
this
connection
would be the determination of
the
manner
of treatment under the
technical
where the invest¬
institution
If the
ties
busi¬
An
of demand and
'
...
and
of
of
nesses.
to loading each
interest
aptitude
shares
can
direct
has
companies
with respect
similar size en¬
even
gaged in essentially similar
tion statement and prospectus and
an
decisions.
influence
you
of
curities
un¬
because
comparatively
little
standardization possible in respect
of industrial
company
in¬
prosperity of the
no
'
|
tions
requirement
a
is
an
obtain
Once
great
it
no
manage¬
to do so,
desire
interest
,
I think from the above observa¬
buying.
that some
corporation whose
a
of
are
possibility
an
issues^ that choice has
in
the
direct
negotiation
with the lender.
tice
such
business
industrial
commercial
favor
has
com¬
extremely difficult to operate
there
freedom
case
which
require
placements appears to be of diswhere the issuer. tinct
advantage to a very wide
of choice, segment
of
our
see,
been exercised preponderantly
large blocks of securities are fre¬
quently very difficult to market
even if registered and listed on an
Exchange.
would
you
should be further qualified, how¬
emphasizing the fact that
suggestion
made
Direct
vs.
As
competi¬
on
railroads
and
removed
joyed in
of
imposed
the Securi¬
•
*
volving an amount in excess of a
certain stipulated figure. Most in¬
dustrial companies would find it
the
must
the
as
1945
through
which
inconsistent
of
petitive bidding for all securities
issued by industrial
companies in¬
Placement
From
it
consummated
wholly
and this is true
ever, by
It
been
der
It is interesting to focus on the
rate securities
be
purposes
Another
are
of
large
are
deemed
the welfare and
savings
an
business and
125.1
mutual
marketable.
portant desirable aspects of
stitution
81#
103.3
if
more
with
vestment
AAA
(Per cent)
43.4
30.6
*Life Insurance
associations.
(est.)
issues
This is important because it makes
it difficult to dispose of the asset
investment
not available
:—
1927
...
Net
Private Debt
(In billions of
value
be
Placement
more
sion,
such
ad¬
which the
factors, might be
modified somewhat by such a re¬
quirement. It would seem, how¬
Competitive Bidding
Securities and Exchange Commis¬
that
the speed with
as
in
are,
of course, certain
disadvantages in respect of direct
fact
size.
the
re¬
purchases.
(1) The
of
but
companies
the
necessary
Volume
There
its
Assets*
such
to
ment and has
Private Debt
and
more
type of financing and
staff
is
publicly of¬
a
stock, cannot dictate to
short-term.
Institution
recognizing
fered issue.
tion.
of
of
case
Disadvantages of Direct Purchases
of
(Per cent)
which
indications
active in this field.
(4) The opportunity, generally
speaking, to obtain a slightly bet¬
ter yield than would be obtain¬
stitution and
2.9
at
a
public offering.
tionship between
—Assets As % of Debt—
Total
utilize
expertly tailored to the re¬
quirements of a particular situa¬
securities
—Net Long-Term Debt—
Private4
to
amortization features and protec¬
tive covenants which seem to be
Ar.sets
Companies
officers
medium-sized
people unfamiliar with
Table I—Assets of U. S. Life
Companies and Net Long-Term
Debt in U. S.
Dec. 31
executive
corporation.
vestors value
perhaps fails to real¬
In general, the same
obligation
Exchange.
an
market
the
cases
notices
*
reasons.
direct
financing,
recent
the
in knowing how other in¬
man¬
direct
with
more,
a
full public relations value
high credit rating.
a
in
been
There is also
however,
sure,
in
ize
of
which
negotiating
quired
have
No general market status is
able
respect
of
established and
commitments
in
the
do
ment
I
for several
(4)
continuing expense and
arising from trustee re¬
quirements,
and
waiting period
information
as
ment.
plan to retire debt in such
ner
well
as
feel
plexity of the registration
state¬
operates,
stipulated
a
certain
vantages of the direct placement,
Other companies have not
ever, to
equipped themselves to make the .with the
study and investigation and to ties Act.
course,
corporate executive would
have
fices.
the
particular
ward the initial cost of
cash
no
preparation
the
tive
1930's.
of
of
respect
favorable; in other words,
the opportunity to average down¬
the
the cost
in
corporations having
throw-off during
many
available
data
in which
than
Presumably
with
Exchange Com¬
security
issues
and the expense
there
the
opportunity to
no
that
and
im¬
been
ment
of
direct
placements, are
those making for the general com¬
ment
in¬
several
seen
slightly higher interest
which may offset or partially
(3)
the develop¬
to
an
A
offset
the
considered
have
measure
with
portant.
SEC Requirements
of
case
the
have
we
cost
features
is
cove¬
advantageous to the borrower
and
for
particular
with
contract
a
protective
issue to be sold to the public. Such
covenants however may actually
constructing such
projects as the New Jersey Turn¬
pike and multiple unit housing
developments.
The
stringent
more
than
nants
this
could be:
more
desires
somewhat
period to purchase
automobiles, trucks,
and other items for hire, as well
as for
producing oil and gas prop¬
The
pe¬
greater
financed
earning power and asset
position
through direct contact
Generally the institutional
investor
cars,
and
a
are
manner
Somewhat
terms.
for investments
erties
over
required,
large interest
in
finances in this
receptivity on
the part of institutional investors
in
they
disadvantages which might
result when a large corporation
indicative of
are
degree
freight
diffi¬
and
The
figures
high
public offering.
have
registration
all
transaction may
more
available
as
resulting
savings.
2.89%.
was
made
thus
yield on
2.62% and on A bonds
average
funds
has
The opportunity to have the
most
a
experience
understand.
of about 5.50%, while
A bonds provided a yield of al¬
it
future after greater
the
it
of
directly
usually in the
general vicinity of their home of¬
its
of
but complicated
to
of
obtaining
in
(6) The opportunity to present
situation which is thoroughly
In
the average
bonds
refinanc¬
in
require
the Securities and
addition
have
financial
vote of
a
even
ease
important
and"
knowledge and
provide another strong been achieved.
1919, the earliest year for which
figures are available, triple A cor¬
porate bonds provided a yield on
the
require
•
most
while
suggestions
,
modify the volume of
placements. One of these
direct
borrowers
a
Bos¬
would be to
in¬
but
large
very
smaller
corporation
modification
or
possibly
•
in
addition,
mission
Some
so.
others
of
case
industry
special problem which
Greater
do
First
been to amend the Securities
Act,
intent of which presumably
direct
frequently,
as
to
placements,
given sit¬
a
them
The
the
institutions
info
of
w
of
1%
such
Curb
York
Corporation.
In
would
entered
participated
a
(2) <The opportunity to develop
make
can
for life insurance funds to
reason
V.')
which
meet
(5)
to make
out¬
President
ton
has been by no means uncommon
advantages:
opportunity
economic
waiver
ing.
following
of
of
investing
not
placements
the
assets
uation that would not be possible
closer relationship
a
lender
or
have
and
1/ 10th
of
Jr.,
com¬
exceed¬
corporation
a
New
Exchange, and James Coggeshall,
company.
for
commitment
a
a
holders
the view¬
from
now
sizable investment in
ac¬
to price.
would otherwise
ing this period, it certainly con¬
tributed, .and in any event the
served
the
at
(1) An
ex¬
possible
only factor at work mak¬
ing for lower interest rates dur¬
is
other
surance
issued
in the
as
He has
with
not the
result
of
attorney's and
as
obtains
He
(4)
of the
to
and
reduction
such
which is firm
other funds.
demand
un¬
countant's fees.
pension funds exceeds that of the
While
the
and
penses
of the
placement
list
consummated.
the
excess
in
amount
an
admitted
point of the lending |nd investing
institutions, it seem"? "possible to
the
which
with
in
the
investment
shares of
Smaller
Looked
derwriting fee and the filing fee,
should
added
certain
is
the small
direct
the
from
procedure.
are:
The elimination of the
(2)
efit
The
borrower.
The speed
transaction
available
were
the
advantages to him
1950 they
Obviously if
or
the future
corporation will continue to ben¬
look at it from the
us
viewpoint of
were
by
83%.
figures
First, let
1916, the
26%
groups
debt, while
risen
accurate
and
with
Advantages of Direct Placement
Thursday, April 24, 1952
.
Exchange, Edward T. McCormick,
York
in
of
standing
.
President of the
an
2%
inates freedom of action, it seems
practical
no
law, for ex¬
insurance company may
an
stock
mon
to be of
as
New
have
not
lender which hampers or elim¬
either
on
small
so
.
as
su<|h
G^Keith -Funston,
President of the New York
Stock
field
by
providing helpful
advice
to
corporations
and
by assisting in the presentation of all the facts to
institutions.
It has been estimated
that about
50%
of
the
total
number
are
handled
through
investment
bankers. The percentage
presented
to
my own company
ner
has
been
in this
somewhat
Industrial companies
man¬
larger.
that" con-
,
Volume 175
template
sider
financing
.
.
should
The Commercial and Financial Chronicle
.
con¬
Continued
of
public
both
direct
the
since
route
theirs
is
great responsibility that ac¬
companies real freedom of choice.
should
advantages
weigh
of
sistance of
buke him.
case.
they decide to go the direct
placement
route,
and
with
or
the
vestment
assistance
the 'in¬
of
banker, they should be
prepared to develop a great deal
of information in respect of their
business:- The institution
quire-enough
detail
will
re¬
make
to
a
If the Constitution has
ure
comparison -between the company
in
question and other units in
courage
similar
provided
business.
of
They
not only have to determine
logical behavior of the busi¬
will
the
Aubrey M.
the
of
i
ness
under various conditions but
also
the behavior of the
In
industry
general, they will endeavor to
become
Tor
familiar with the busi¬
as
in
ness
question
layman
a
time
it is possible
as
become
to
available.
.should
vantageous
the
Businessmen
this
regard
in
as
ad¬
an
development and
serious
well
be
whether
so
not the proposed direct
or
placement
is consummated at that time.
In
■
other words,
be prepared to
divulge all the pertinent facts and
figures in respect of your busi¬
in the
ness
doing
knowledge that by
be developing
so
will
you
atmosphere
of
trust
and
an
con¬
fidence that will redound to your
advantage
in
seeking long-term
funds eventually, even though the
rewqrd may not be immediate.
.publicly
140,000
yesterday
shares
of
(April
.23)
common
stock
of The Tucson Gas, Electric
Light
priced
& Power Co. The stock
at
$26.50
was
share.
per
.
,
Proceeds from the sale will help
finance the company's construc¬
tion
including the pay¬
$1,000,000 of promissory
program
of
ment
is ,a deadly
Its real danger far
whether
should be raised to pay
workmen, and
ities.
Chief items in the program
the installation of a 20,000 kw.
are
turbo-generator
installation
in
the cost of the higher
other similar issue.
any
the Administration has
course
militant
of
the
and
40,000
a
partial
unit
kw.
expected
to
mid-1953
'
in
the
and
*
1954.
be
latter
\
v
operation
by
by mid-
"sold
even
more
becomes involved.
D.
Roosevelt
a
56.620
kw.
in
and
is
ex¬
pected to hit 81r400 kw. for 1952.
Dividends on the common stock
have been at the quarterly rate of
,40
cents
ber
The
might
of
state
the
and
comfort
affairs
is
During the past decade or
Washington authorities
of
local
—
sometimes with aid
governments—have created large
blocs of subsidized individuals who
to
dangerous than
more
even
the surface.
appear on
two
support any action
share since Septem¬
For 1951 the company
reported to.tgl
operating
revenues
of
$6,718,015 and net income of
$935,133
or
$2.39
per
common
share.
-
-
.
on
are
always quite ready
the part of government which
blocs,
These
help further line their pockets.
particularly
labor
organized
that
of the
(Special
to
,The
Financial
NEW HAVEN,.
organized
the
and
afraid, become victims
Conn.—Roger
B.
Co,, 2Q9 Church Street,
bers
of the New"York
change.
~
;
\
tions of
arouse
our
so
large
a
part
t',
housing
completed. The
be
no
assume
act
he
is
the
by
FHA
and
VA
government
rates
edict,
in
the
rate
4y4% and the VA rate 4%.
now
"These
rates
should
be
in¬
creased
so
that private investors
will again be attracted to the
gov¬
ernment
"An
programs,"
.increase
match those
chase
for
homes.
rates
with
rates
in
secure
a
to
defense
and provide op¬
Present
not
to
pur¬
FHA
and
effective
now
not competitive
are
which
other
ments—and
sources
veterans
are
they
to
produce
present
program
because
will
private
the
rates
obtainable from
now
from
declared.
these
securities
portunities
VA
in
he
investors
types
large
of
investors
have
responsibility to invest policy¬
holders'
and
the most
depositors' funds
on
advantageous terms they
can.
lation
is
required.
.have offered
easily
there
funds
are
ample
available—but
unrealistic
more
profitable
investment
at
rates
return
in
other
media.
Managers of
these funds—the large life insur¬
ance
companies, trust funds, sav¬
ings banks, etc., would be derelict
in their duty if
they did not take
view because
a
they have a
responsibility to their depositors
and policyholders to do the best
"In
these
times, with taxes at
high and with the
all-time
an
Federal
government more deeply
in debt than ever
before, it would
be an economic mistake of un¬
paralleled
Federal
home
is
magnitude
funds
the
for
any
into
come
the
slightest
for
reason
such action."
With
one
quarter of 1952 be¬
hind us, Costa told the
mortgage
men that the
prospects for a good
home
building
brighter
ably
appeared
on
year
appear
day and consider¬
every
more
promising .than
January 1.
they
"This year gives every evidence
of
being
good
a
home
building
Present estimates, based
year.
various
on
controlling
dicate
there
duced
900,000
factors,
likely be
will
or more
in¬
pro¬
units. This
to
1,100,000 in
1951,
1,350,000 in 1950. There still
So
far,, they
remains
tremendous market for
a
homes in this country.
new
"The materials situation has im¬
proved
in
Some of them
the
FHA
and
for
more
markets
VA
mortgage
than
a
year,
apparenty preferring to wait for a
change in the market. There is no
evidence
that
likely to
conditions
money
within this im¬
ease
portant period of getting the
fense
housing
urgent
as any
de¬
are
strictions
and
are
have
liberalized
and
practically
in good
now
supply.
in surplus. Re¬
recently
it
appears
been
the
shortage of copper is about the
primary difficulty at this time.
"It
is
now
building
clear
program
that
our
home
in 1952 will be
exists
before the
coun¬
try.
ican
been
increased
greatly,
all items
underway.- •accomplished with no detriment to
today is the defense program as the Amer¬
program
The problem that
as
to
financing field when there
not
proposal for end¬
ing the stalemate that has existed
no
rate
both
on
loans would
involve only a small
cost
to
the borrower
desire and
own
future
no
intention of
calling the
We shall
as a
fact that
system quite different
some
brought it to its present state of
that he is sufficiently
course,
now
as
these to be fully aware
leading
or
of
ter
lights. We take it
under
has
but would be sufficient to
open up
market in both fields. On an
capacity „of producing has
clearly demonstrated in that
going to be able to provide
things needed for defense as
•we are
the
trying, to lead. All
so
that
percent
for
as
our
domestic
econ¬
taking place
or
is being threatened.
interest
the
rate
themselves
—
and time is
-the
on
debentures, which are exchanged
by FHA in case of. foreclosure,,
should
be
present
would
visions
increased
2%%
assure
addition,
the
-to
a
from
rate
their
which
to
pro¬
-many
properties
an
Mich. — Joseph T.
with Paine, Web¬
.now
Building.
waste
loans
only
DETROIT,
Hartner is
present
since
"The
<
ber, Jackson & Curtis, Penobscot
these
of
Joins Paine, Webber
(Special to The Financial chronicle)
their sale at par. In
improved
is
can save
With King Merritt Co,
(Special to The Financial
would
be
should
of
built under
be
the
this
in remote places.
for. making these
»Only the people
well
omy."
Chronicle)
only
mean tan
increased payment by
PONTIAC, Mich.—Frederick J.
the borrower of $1.12 per month. -Schumacher has
joined the staff
"In
addition
to
the
general of King Merritt & Co., Inc., 53%
rate increases, the present defense West Huron, Street.
housing loans should be changed
one
from what is actually
Running out
actually
present
and
can
be accomplished by action of
gov¬
officials. No new legis¬
this, however, does exactly nothing to protect the people
-
be
compares
"An increase in rates
program are
-:
lending
building field. This
entirely
unnecessary
home
which the government has
set,
these funds will continue to seek a
can
invest¬
25-year mortgage, for
example, an increase of one quar¬
of these parties into question.
which
possibility
develop for
will
$8,000
that the President has acted and will continue to
that
strongest
the
actually believes that this country will best survive and
thrive
the
re¬
rigidly frozen. The FHA
main
additional
according to his
from
con¬
investment job possible.
for
which,
,
a
at
government
cept
more
We Must Save Ourselves
Wehave
agencies
such
ques¬
life and health.
motives of any
avoided
market, Mr. Costa
pointed out, has moved to a higher
price level in the past year ex¬
and
more
mem¬
StoCk^x-
y
in¬
that
so
defense
can
enough people about these basic
voting population that it becomes
difficult to
of the revolution he is
Chronicle)
loans
money
"An
They constitue
acquainted with such matters
MulRns is ..with Chas. W. Scranton
„&
feels."
greatness —assuming, of
With Chas. W. Scranton
needed
entire
are
to them to
seems
per
1951.
raising the
ernment
15,100 in 1941
1951
of
program
his
and
by
mort¬
again compete with other
investment and the na¬
can
tion's
of
the situation.
by a third. The com¬
pany's maximum hourly peak de¬
to
VA-guaranteed
markets
housing
more
or
high-handed notions and
deeds, his contempt for orderly constitutional procedures,
his repeated challenges to all that the American system
is, and his immense capacity for drawing the plaudits of
the crowd, have created an exceedingly dangerous callous¬
ness to such
things in this country. Four years of war
which, according to Roosevelt-inspired, popular ideas at
any rate, required "temporary" surrender of much that
had always been sacred in this country further aggravated
•increased
mand has risen from
direct
the
Aubrey M. Costa
FHA-in-
complete
decade
budget,
in
their present
increase these rates,
to
the
private
in
and
Federal
clamor
a
since
to
the
funds
The fact of the matter is that
Franklin
im¬
;act
types
War
Tucson ;has
of
is
more
Federal
corporate
honor
that
there
April
be
adamant
that
they
It is of such stuff that dictators
hurt
and
the
stand not
terest rates of these
vital when freedom of the
ments of Tucson and its immediate
doubled
on
the
throughout the country. Of course the
been "sold out" to the unions
dfeep disgrace to the party and
to the country, that such is the fact.
Obviously, any act
by the Government which compels the steel companies to
pay more to their wage earners than they are willing to
pay, and which in addition forbids the companies to add
the additional cost to the price of their products, is an
outrage. But even more essential to the life of the nation
and of our freedom, is the issue of the right of the Presi¬
dent to seize private property whenever in his judgment
the "best interests of the people"
suggest or require it.
adage that "the jingle of the guinea heals the
County.
From 1940 to 1950 the
{ population in
Pima
has
nearly
in New
g
"log-jam"
to the
out"
of the old
plus electric service to
the 50-mile adjacent area in Pima
n
sured
The company supplies the entire
electric and natural gas require¬
vicinity,
"If
tinue
break
unions
farmers of the land, have, we are
"
Confer¬
conven-
mediately
to the
pay
further
a
all costs.
Mort¬
the
Democratic party has long
and to the farmers. It is a
the
company's
new
electric
generating station. The former is
on
step which should
gage
•Of
•outlays.
During 1952 and 1953 the
plans to spend about
$12,400,000 for electric facilitiesand about $1,100,000 for gas facil¬
Federal
14 called upon
steel prices
notes previously incurred for such
;company
the
the
in
and the like,
highly in¬
burden
of
would
pay
are
place
government
higher rates of
measures
and
to
Roosevelt and
Boston Corp. jointly, headed an
.investment group which offered
"These
flationary
ence
question as to whether the steel workers
good claim to higher wages, whether ;the steel
companies could or could not "bear" the cost of such
press
Blyth & Co., Inc. and The First
the
at
g
gage
a
Utility Common Stock
■»
n
advance
or
loans.
Eastern
construct their programs.
Group Offers Tucson
Co.,
by the Vet¬
Administration
commitments for defense
housing
have
The issue becomes
Blyth-First Boston
Mortgage
direct loans
more
erans
Association's
one
rather than the reverse, and
this could
&
or
session
it, this
faced.
we are
Trust
purchases of FHA and VA loans
transcends the
;that will be most helpful in future
years
thing by which
about
of
opening
York
mistake
no
President
Dallas, speak-
i
be
Costa,
Mortgage Bankers Association
America, and President of the
Southern
good sense, the statesmanship, and the political
of the legislative branch of the Federal Govern¬
there
c*0
other segments of money market.
Holds high rate of home building will be maintained this
year.
of the
Let
FHA and VA Mortgages
that cannot compete with
no
ment.
lines
on
47
Aubrey M. Costa, President of the Mortgage Bankers Associa¬
tion of America, says
"log jam" in these loans is due to rates
definitive,
dealing with an over-ambitious President,
no method which can be evoked
promptly and effectively,
then we must
begin at once to devise such a provision and
insert it in the document with a minimum of delay. Mean¬
while, there are a number of steps a courageous and
resourceful Congress might take to deal in a practical way
with the immediate situation by which the country is
faced. Whether all or any of these measures will be taken
during the next few weeks or months will afford a meas¬
significant financial and economic
.
It
direct method of
as¬
If
without
We See
the
investment banking
an
•firm in each
As
possible
the
obtaining
Urges Higher Rates
and
the
They
(1739)
from first page
carefully the various char¬
acteristics
the
Number 5110
possible alternative
Three With Waddell Reed
(Special to The financial Chronicle)
DETROIT, Mich.—Geraldine L.
work
Bruce,
increased appropriatiqn from
Philip
programs
John
J.
W.
Watson
Congress for the Federal National
Waddell &
Mortgage Association for further
ward Avenue.
Grimes,
are
now
and
with
Reed, Inc., 600 Wood¬
38
The Commercial and Financial Chronicle
(1740)
Continued
from
which
13
page
The Social
have
scribed
we
already
been
The
tJmbers
on
medi-
the program
alone,
care
un-
by the Federal Governlargely through the VeterAdministration, is of stagger-
dertaken
Railroad
thf armed forces
of
and
In
less c°mPetl*10n *° extLnd^ activities estimated that the Fedexpand the benefits under these
Government is attempting to
eral
.
nmoramc
the
aggregate
-
,
they
-
amount
hpvond another.
beyond another.
varying
glve
The public health activities
^3)
-
.
nnp
programs one
medical
degrees
to
care
of
direct
million
24
what
believe
we
are
the
proper
relationships between ourselves,
our fellow men, and our govern-
™
"
Government pre- ficiaries—about
Federal
the
If
ment.
of
we
somewhat
a
one-sixth
rational nation. Since that report
more
the
of
and
program
terisUes of
of the charac-
some
the
wboie
£eld
^ave
employer's welfare small
an
7
ntmn
of
eoncern
the
in
this
achievements
been notable, due in no
measure
ur.
On
government.
iost if
ities
our
inalienable
Even
to
Drobiems
,
j
in thig
seem
area
a
cy
some
to
ities
of different objectives
bas caused
endless confusion
and
priv;te
wnn
heaith agencies and those
state
of
local
and
governments,
.serious
problems for the nation, where the boundaries of these acbeyond the circle of railroad tivities of the Federal Governworkers.
For example, the level
ment should be drawn is a matter
far
rnritv
w^ll
workers
was
!??rAev^LPreviousA!y ad°Ptfd for
OASL This
then used
was
as
constant alertness is
required
to
a
prevent unwarranted extensions
benefits, into areas which are the proper reand the 1950 Social Security Act
sp0nsibility of the State and local
amendments succeeded in bringgovernments and of private enfor
raising OASI
level well
2S£ttS^S£5lkd
workers.
However
amendments
trl
to
the
Railroad
a+u
Iirement
Act
,,
the
Re-
?
•
emphasis
„
^ Arn?ed forces and veterans.
Tbe benefits and services provided
with the 1951
for members of the
armed
^
has
forces
ho.
.
such
as
in
"
the
and
Federal
siwiitv
exist
In
regard
those who
on
armed
forces
Hifferent
PniiPf*
than
fnunw;n(,
A'
annroach
that
pariipr
nllr
may
adonted
whose
wars
3®™' mnS TrelaS
Qrna1i
nnrfinn
with
?
nf +hP
thp
the
ni'
.
•
nnmher
h
•
h
th
total
nonula-
rontinnanre
of
d
of
nersons
npriod
armpri fnrPPQ; jo
of
Vprv
life ^vith which Social
'iseeneJallv concfrned
ngH "montfi
E
of
are
nmnnrHnn
nf
a
very
substantial
proportion of all citizens.
can
not
not
more-
Basis
Production
the
Efeonlnlte'
of
True
Seenritv
Basis ot Economic Security
of individual
The advocates of more and stilK
?ud\"g rGsPonsibility for ones more Social Security seem to fail
?mlly11 ^ oneL depen'\ents' to understand the limitations of
Secondly, there is the area of res
this
em-
an
type of action in providing
security.
Social
Security
true
relationship,
measures
are
not
sponsibility of society
through government.
whole duce
as a
a single loaf of bread or a
cial Security is merely a kind of
medicine—a bitter kind that needs
to be used wisely if fatal results
are to be avoided. We need to
realize that true social or economic security depends on
a
sound economy, on steady employment, and a high level of production of those goods and serv-
to believe that all ices by which we all are sustained,
major problems we face can Eighty, importance
be dealt with satisfactorily by the
on y0iuntary
the
other
pro-
single garment for the needy. So-
0ur economic and social organization is such that there is an
important role which must be
filled by individuals, by employers» and by government if our
economy is to function most effectively.
Some aspects of our
industrialized economy create sitnations which persuade us that it
of
for
panacea
a
T^rdjy, there 18 th+e area ofJ?~ economic ills. They will not
action
riti7Pn<?
ail
Seventh-
™
the area
responsibility, in-
L™ndeed! a^RtheifdS J» unrealistic
ents
also taken into account, *he
they constitute
The-
should
should
|Pp™priate>y
undertaken by
and local governments.
those
to
Government,
Government
undertake activities that
—
r
the
nation
the
wish to bestow
^ved
of survivors' benefits for railroad
that, by its nature, probably canoriginally set above not be rigidly fixed.
However,
nroeram
2ds w5
might conclude
veness of the program.
govern-
rom
termixture
we
.
arefm a Posihon to judge the ef-
individual responsibil-
surrendered
are
^
First and fundamental
cSotic state Clearly
broad
oroaa pi
policy must be set
must De set
In
outstand-
some
u_
Th
to
when
...
rights, I
ment.
was com-
creased substantially.
State and
of
some action by government is
believe we become keenly aware appropriate, we should try, in so.
of
the
responsibilities that
go far. a.s Practicable, to keep these
with the concept, and also of the activities as close as possible to.
danger that these rights will be those wbo pay the bill and who.
certain
<1) By the Railroad Retirement plctUre. These include a number
pleted,
these
expenditures
for
Act, Congress has established an
f areas which are an appropriate health and medical care have inanomalous program that has some
of the characteristics of the OASI
considera-
Local Governments
us
man
with
Sixth: Importance
cherish, as I think
really do, the concept
endowed by his Creator
most of
bene-
'
sent
basic
refer,
„„„„
of
the
is
ety of any government action and
then of the type of action and of
the level of benefits that might
be appropriate. There are, howev,er, a number of other considerations to which I should briefly
to
In the field of health and
de- broad problem presented by these
programs
for special groups of
veterans.
this
provide benefits for rity we are dealing with a phase
of
those in the 0f political
philosophy. Our views
armed forces is currently under Gn Social
Security will ultimately
consideration in Congress in the depend on how we
regard ourKilday bill.
selves and our fellow men and
we
survivors
Retirement workers is the confusion, the ans
Act
overlapping of benefits, and the jng dimensions. The annual ex(2) The civil service employees inconsistencies
that develop as penditures on these
activities
insurance
and
retirement
pro- employees
move
about among were estimated at $2 billion in
gram.
these different employments dur- 1949 That year the report of the
(3) Thp nnhlip hpalth ^rvicpq
ing the*r working years. There is Hoover Commission suggesting a
(4)
Thp
hpnefit
nroffrims
for
°' °* coursa' a seemingly end- reorganization of Federal medical
<1)
that
Thursday, April 24, 1952
.
tion in weighing first the propri-
the
Security Program
must also consider:
when
.
deal with Social Secu-
cal
which
Fifth: Who Shall Be Responsible?
Government.
extension
Some Observations
entirely by the
A further
borne
are
Federal
.
individuals
hand>
alone.
On
to
lose
seem
we
of the Effect
Services
„.
Sir William Beveridge
was one
®
•
-i
Insurance
and
jproviaes, for
civil
service
Federal
" Included here are a great variety
employees Qf separate plans of
many kinds
plan predicated on service in different
•
(2) The civil
service
retirement
two
some
employees
Government,
niillion
Wars,
among which
are
various
categories of pensions, life insurbenefits
ancej and medical services. There
of
the
srnular to those provided for other
workers under the Social
insurance program for veterpf World War I and a differ-
1S an
Security
"
ci™uIt
welfare bene-
ent program for World
War
II
vast
operations
Government
reactions.
ac-
slo-
"Tax and tax and spend and
body
of
alone.
France
and
supported
private
retirement PLIaI
SOME
SOCIAL
has
been
enacted,
SECURITY
the
*
Paid
Monthly Retirement and Disability Benefits
Old-Age and Survivors insurance
2,996,000
Railroad
During 1951
retirement-..
Veterans pensions
1 647 938 000
196,529'oOO
Total
„
5,825,100
—
Monthly Survivors
Railroad
Civil
$
34',500
administration
14^14^000
1,020,300
519,398,000
2,587,500
Veterans
serv-
fill
eoncern
to oppose
some
people
$1,106,424,000
Unemployment Insurance
!?,e
all these activities,
resPoasible
Railroad
tremes*
the
State programs
unemployment
797,300
31,600
insurance
$
Much
even to
citizen
_
Total
;
2.701,100
2,041,500*
<cases^
49
4
f
c
~~
"
Total
•
i
iscitus of Social
».
n
JSt
•
of
~
"
SaTiin
ment
a
i
Life
^
^cCe
Service
a
^2 290 2fiR ooo
'
'
700f
'
of Dec.
ing
of
m,
___
factors, and
many
I
as
in-
In- dicated before, any
we can muster, deter-
limits
proper
•
fected
answer is afchanging
conditions,
by
of
each, and
have 'their
6,800,000,000$
to
all the problems with which So-
Federal
sume
mother)
already
Government
viding all
change
been
should
as-
deemed desirable.
from
are
time
to time, and
appropriate at
may need substantial reanother. It is a continu-
solutions
that
face.
However, there
guiding principles that
we
some
are
we might follow at all times
principles by which we can meas-
—
$38,360,000,000
have
Security is concerned.
Our
society is not static; the nature of
the problems we face continues to
ing task
,
benefits
to
programs
tnat
activities tnat couia not possibly
®
'
govemm^ted e°mj
s a
s?or!
learn weli before it is too
Ninth: What Is the Basic Issue ia
Social
-
The
it
Security Today?
problem
face
we
as
j
see
is to keep these programs from
getting
of
out
hand
from
over-
whelming the whole Nation
^"Stewed^into
apPropriate
g0vernrnent
sidious
growth
fronts
It
and
in-
extension
by
most_
lone-
it
is
'avoid
difficult
first
extension
siren
of
and
ebU
s^,rel
the
bv
be
concrete
the
*
,
'terms
terms,
concrete
more
for
this
ureed
Such advances wiu
inous jn the aggregate
Av
of
the
is
needyfear
we
Congress to
then that
boundaries
well coordinated
a
nolicv
range
from.
beyond
different
that
Ladring
areas
action
£
little
g up to $80 a month
under OASI for an individual, and
up to as much as $150 a month for
cial
8.526,000,000
one time
4,800,000,000$ vision at
(usually the mother).
1
31, 1951
insurance; U. S. Governfunds
m
'
2,694,000,000
gg egate Amount of Trust
Funds
*£stimate3*
more
volume
tho
tne
basic current need is a thorough
true objectives realized. This, of families. Nevertheless, there are coordination resulting in the escourse, is a formidable task.
those who would push them even tablishment of OASI as the priThere are no fixed answers for higher—judging them as if the rnary provision for all in the field
fund—$15,540,000,000
•Number of children and
adult -caretakers" (usually
the
(includes some duplication.
1
opposition is
wor/ s£adfastly
$7 731 566 000
and disability fund___
Life
and
195,247,000
—
.
blind
telligence
(tocl. railroad acct.)-
?
insurance
strengthening and supporting such
mine to discover the rightful role pushed-e
'
as
j
r«i,rn
pro-
53>08;000
tax receipts or contributions and
T^i^lrretir~
•
these
54 536 000
4„credltej 'n,eres.' 0TCr benrflt
and. Survivors insurance trust
.
\
~
Security trust funds
excess
of
-
19^947 000
14 528
c
552,888,000
5 ' 287 ' 200
_
'
Grand
individual effort and weakening in-
can be realized only if we attempt But we might well wonder at the
to appraise them with the best m- levels to which some of these
$1,433,989,000
d^OUO
Total
Not
but it would be discouraging
97,200
124,400
(cases)
too high.
only would it, under those cir-
323 000
permanently disabled
assistance
sistance
ex-
stead, I believe, the greatest good
....
a
can
unwise and even dangerous
860,628,000
'
Old-Age assistance
.Aid to dependent children
Aid to blind
Aid to totally and
General
$
is
particularly if some effort. Where the line should be
needed changes are not made—I drawn requires the wise balanc-
20,217,000
828,900
it most certainly
might fear dividual responsibility rather than
as we
consequences
grams
840,411,000
believe
Public Assistance
tne governmental
This has led effort or for private group effort,
hardly support either of these
Total
Security benefits is such that it
leaves little room for individual
advocate the abolition of much of cumstances, be going beyond the
what is now being done.
social need of society as a whole,
49,527 000
retirement
iong
a
individual might apply but what
resist all change, and
523,485,000
jn
caal
individual tragedies. The test of
the
measure
of
social
action
needed in a particular situation is
not basically the same test as the
with deep
$3,474,246,000
1,383,000
149,700
underj;oo]E
SSSSfoi
some
retirement
service
thinking
quite 1 properly
Benefits
Old-Age and Survivors insurance
the individual as a person/but
behind rather in protecting society itself
perhaps
°I the developments have taken
'
„
devoted persons in a great variety
endeavor8.
Somewhat
belatedly, he became aware of the
The magnitude and complexity is necessary to achieve the pro- p
°* these vast undertakings and the tection of society as a whole.
fafP
verY questionable direction some
If the level or scope of Social iaxe*
$1,361,046,000
268,733,000
171,000
2,391000
Civil service
the
part,
ices, increasing the costs.
From
another school of thought we hear
many expressions of the greatest
of Rpnofitc
Payments
267,100
retirement
on
alarm.
or
of Dec. 1951
as
in
is
considerable
a
Remember
This,
volume
a
services
ing benefits, increasing the
Amt
orRecipients
L—Program
fpend."
that
of
FACTS
of npnpfiHiripq
No
costs
and
supporters
rangement for indemnity benefits explains
or
tremendous
acquire
count
gan
results of his labors, he expressed
alarm at the effect these programs were having in discouragthe voluntary services that
had been carried on in the past by
these problems is not primarily in
so
organization
benefits
to
sponsored
ar-
Government. After observing the
responsibilities which they should
properly assume.
the
bound
veterans.
an
varied
that
cash
m^y^mplovers under^mokwer-
More recently
Federal
evoke
The hazards of life with which
Social Security deals result in intensely human problems involving
individuals. Yet we should understand that the interest of society as a whole in dealing with
Any
disburses
of
the
of
should
UFe
the
aPPropriateness Of
actions from time to time.
briefly consider
some
Our
Let
of them.
us
the
full
responsibility for
or
income
pro-
substantially all of
which
might
be
This approach
mistakes completely the proper
function of government action in
this
field, and unless this is well
understood there is much trouble
I have dwelt
respective
protection,
.
.
on
this matter of
areas
of
responsi-
bility for dealing with these problems of security.
I have done
advisedly, because it
seems
to
so
me
and
survivorship
the
on
foundation
.
of
...
whlch their mdividual protection
can
be superimposed.
The
com-
petitive overlapping in activities,
functions
and
'
nACT
benefits
,,
OASI, on *be
the
ahead.
the
retirement
of
one
other, the
program,
Acf
,
hand,.and, on
Public
Assistance
the Railroad Retirement
pr0grams of the Veterans
Ariminktraf;ftn
Administration,
service
between
,
,
„nd
and
employees
fhp
the
and
pivil
civil
similar
Volume 175
Number 5118 77
'
The Commercial and Financial Chronicle
.
(1741)
State
is
programs
iiitolerable
an
condition and should be corrected,
and
Tenth: The Relation of Federal
observations
incomplete if
other
one
would
aspect
of
be
Fed-
eral activity
affecting Social Security. I refer to the Federal tax
policies. There has not been an
adequate
measure of
they
which
touch
Social
concern
by
Four
our
ing
with
and
Under
be in
the
chambers
various
not
treated
recipients and
r
Working
analyzed
1X"L
A
to
to
an
.,
.
ihrmi.h?'?!!
through an individual
himseli
i
«
i?
-ubject
.
,
annuity or
ma5I- reCeiV.e f2°m his
.re
,n
222?. ar.e
income
tax.
This
is
to
have
meas-
and generally have provided
much-needed source of sound
ures,
and
We
hardly a situation which is conducive to individual private effort
need
many
a
individuals
more
groups
spmnrilv
de?take
ron_honId
the
visaged
the
bwalpaymentsta\-°bn the °th„er
d,
which
indi,
discussed
principles,
weighed specific legislative
interest
,,
tia
and
and
broadening
few of these efforts to
encompass and
Object
not
are
;
b
+
,nnn
•
studies
d
r o a
bv Senate
en
Resolution 300
Resolution 300,
.
are
favoring
/-
benefits
who
in
benefits in
to
say,
employer
plan.
those
increase
an
level of OASI
ence,
of
some
the
prefer¬
under
sponsored
an
retirement
It seems to have been
the clear
intention of
Congress, as expressed
by the Revenue Act of
1942,
encourage
to
employers to establish
retirement plans for their
employ¬
since employers are allowed
tax deductions for
payments made
to approved plans
and, in general,
payments
not taxable
are
employees until received
fit payments.
similar
no
deductions
tax
come
their
on
return
employees
tribution
to
On the other hand,
encouragement
in¬
extended
respecting
under
to
as
personal
is
their
employer
to
con¬
retire¬
ment plans.
The immediate prac¬
tical
of
result
place
the
this
policy is
impediment
powerful
a
The
the situation and the
of
gravity
considerations
enables
the
least
involved
the
of
is
that it
employee to participate
in
providing his own old-age se¬
curity—an obligation for which
he has the primary
responsibility.
By appearing to make it attractive
to
this
responsibility
and
by encouraging employees to feel
that
it
is
desirable
responsibility
to
to
shift, this
The
relief
lack of
under
element
an
of
tax
retirement plans for
self-employed persons, among
which lawyers and many: other
professional persons are included,
as
compared with the relief given
corporate employers, has engaged
the attention of the American Bar
Association and other
reasonableness
of
groups.' The
some
measure
of relief
is clearly apparent*'This
objective of the Reed5-and
Keogh bills - which / haVe - been
introduced in Congress: While the
is the
purposes of these bills are -Worthy,
the means by which
take
to
they Wderrelief ^are* too
provide
narrowly
drawn,
they do, the
excluding;-
as
of the fabilities
use
of insurance
need for
which
been
piecemeal
these,
to
groups
may
approach,
such
efforts,«such
deal
with
approached
not be
been
dealt with.
and
too
a
satisfactory
issues
referred to in the
all
that
has
Irre¬
already
study and patient analysis
wise decision is
greater than
Congress needs the support
ever.
and
help
country
the
of
minds
best
marshal
can
the
for
this
undertaking.
It should be urged
to give this subject a high order
of priority.
In
Social
ment
set
against
Security the govern¬
the
build
Let
defenses
of
ravages
Horsemen.
do
to
out
the Four
make
us
sure
not, in the process, create
terrors
other
and
pull down the
defenses
has
it
we
new
many
been
our
good fortune to possess.
Stylon Common Stock
thoSig just
of the* large
contributory retirement plans.
Eleventh:
as
What
Shall
citizens
responsibility
to
We
we have
.
Offered at $1
a
our-
matter how
no
^
t0
"
.
There
is
no
one
in
our
govern-
.
ment .who has displayed any
signs
A
syndicate
hart,
headed
Kinnard
&
Inc.,
and
imCdUorio?tof andMWh°te
of
our
being
are
completely
-
been
Article
of
II
the
Con-
April
of
shares
stock
at
the
issue
an
of
Stylon
$1
Stylon,
with
23
a
Corp.
share.
a
275,000
common
Massachusetts concern,
headquarters in Milford, is
fourth largest manufacturer
and
distributor
ceramic
of
tile in the United States. The
also
pany
tile
and
distributes
bathroom
floor
com¬
imported
and
kitchen
outgrowth
of
firms
two
formed in 1937 and 1940, respec¬
tively, by Joseph Mass, the com¬
pany's assets as of March 31, 1952
had reached $1,708,275, including
$338,171 cash. Mr. Mass is still
President
and
Treasurer.
Its
capitalization consists of 2,000,000
$1 par common, of which
shares of
1,200,000 shares
are
outstanding.
Proceeds of this offering are to
be used for general
poses.
.
■
corporate
pur¬
,
John Canaras
John
Canaras
...
.
is
.
Opens
engaging in
a
,
securities busmess from oflices at
904
Hunts
Point
Avenue,
strength
it
say
and
JACKSON
Levine
have
and
integrity
the
necessary
to mean it.
The first requirement for a par¬
ticipant
in
discussion
any
is
a
knowledge and understanding of
his subject.
Put bluntly, he must
know what he is
talking about. I
that facetiously.
We
do not mean
talking
are
about
the
American
foreign policy, and yet I doubtjf
of us knows exactly what this
foreign policy is.
any
On the one side of the world
are
fn
waging
hp
ciirp.
U:
been
told
war—under
a
a-
war
was
whirh
we
wraps,
w
WP
lrhli,nlbut
po
not war,
a
New
ourselves
the
day
has
opened offices
in the securities business.
engage
■
or
bring, and let
may
tomorrow take
care
problem?
is
Or
guarantee
of tomorrow's
it
our
policy to
future—and our
our
children's future?
As
individuals, the American
people
have
accepted the sound¬
insurance in so far as it
of
ness
pertains
to
their
but when it
two-thirds of the Senators present concur."
personal
lives,
life, which
That vital phrase—"by and with
the advice and consent of the Sen¬
ate"—is
our
antee in
foreign affairs.
The
Constitutional
truth
is
that
guar¬
to
in
effort
an
*
-
J
••
to
crisis
with
might
is
grandchildren, they have not
the
principles
which
have made insurance the
bulwark
The individual
who procures insurance
does it to
protect himself and his immediate
family.
He is reassured by the
financial strength and fair dealing Of the COmnanies with whirh
m6 °f the companies with which
He knows that they are
breathing sound and he feels that they will
what
what
gain
i
_
And then
policy
their
followed
of the individual.
an—
ap-
best expedient—
I
time.
We
portance
United
the
rathpr
rather
the
be
national
to the
expedient of
thp moment—or
Or
the mnmprit
pears
comes
is of much greater im¬
to
their
children and
the
next
that
say
t_
i
A
meet the next
we
expedient.
foreign
our
tie deals.
n
Af
V*
not
/-3
1
r\
hide
i
where
vi
J
in
1
a
behind
interpretation
some
of
a
^
.
legalistic
comma
some¬
the
policy.
He is also
by the state govern¬
supervision of the insur¬
reassured
day-to-day basis,
with decisions dictated by crises,
ment's
real
ance
or
on
a
imagined.
believe
I
to
say
that
that
it
the
is
not
people
unfair
of
the
United States understand the for¬
eign
policy
Great
of
they do our own, for
they all know that the policy of
fare of
England first.
on
est to him.
Britain
better than
Great Britain is based
company he selects.
He is
making sound provision for the
future for those nearest and dear¬
the wel¬
No thinking
American can take
A
Is
Day-to-Day Policy
foreign policy doing the
our
same
for
eign
policy
our
country? Is our for¬
directed at building
the essential
bulwark for
the fu¬
umbrage with
ture?
I am sure that everyone in
the part of Great
this audience could do much bet¬
Britain.
As
ourselves, many ter
than myself in emphasizing the
of us wish that a similar policy
importance to the individual of a.
such
policy
a
in effect in this country.
was
This
one
on
for
practice
of
moving
sound insurance
from
crisis to another has offered
a
tremendous opportuntiy for Com-
plan, but I do not
believe that the average person in
this
audience, or the average
tremendous opportuntiy for Com- American,
munistksympathizers to influence
and certainly not many
the State Depart-
of the men in
ment, have given anything like
the thoughtful consideration that
Two Expedients in Europe
and, what
they should to the effects on our
we would like to hope will always
r a 1 & n
pohcy leaders
be, friendly nations to prevent would like to confine the Euro- children and our grandchildren of
the foreign policies which have
war.
If it is our policy to arm our
pean issue to which of two ex- keen in
effect over recent years—
fellow nations to prevent war in
pedients should be adopted: On those
wavering foreign policies
Europe, why did we refuse to arm the one
hand, the proposal that that make it
impossible for anyone
the Chinese of Chiang Kai-shek—
the United States aid in an effort
lice action.
On the other side we
arming
are
ourselves
.
Chinese Government
—
us
to
rec-
and by the United
avert
war
in
Asia?
Why do we refuse equal help to
Chiang or even to be helped by
him?
to have faith.
to unite Western Europe
in order
t0
strengthen the Atlantic Union;
and, on the other hand, the pro¬
posal
that
the
United
States
strengthen the Atlantic Union in
order to unite Western Europe.
No
matter
what foreign
policy
our
government
in Washington
may have, it does not have the
approval of the citizens of the
Their
United States.
neither
been
approval has
sought
nor
re¬
quested, nor have they even been
given
adequate
information on
which
base
.
and
inadequate
liberal
more
eUherofC3Se' eVe"
gifts
arms and
In
efforts
nations would result.
There
has
apparently
effort
sighted
foreign
been
to
plan
a
policy. The
United
to
seems
States Government
be in
favor of
Great Britain
proposal.
prefer the second.
the first
seems
to
To the average
thinking American there is little
difference—just the
no
farpol¬
old
question
Let
start
with this phase of
international problem.
But
our
us
in doing
this let us not forget
icy, such as it is, seems to have that our actions
in the rest of the
grown and wavered on spur-ofworld affect the results of our ef¬
the-moment decisions at Teheran,
forts
in
Europe.
What is our
Yalta, Potsdam, Quebec, Cairo, choice as to
Europe?
As I have
and
various
ence
other distant confer¬
localities.
Some
of
it
has
said,
on
resulted
from
have
the
flowed, or
fired,
from
the
crises
which
perhaps back¬
results of the
friends, and
it seems to be: Do we act
the premise that God helps
those who
help themselves; or do
we
continue to pour out money
and military
aid—the life-blood
confuse our
even
It
is
possible
that
if
we
had
not had this
extemporaneous dayoutlook that we would
to-day
have
had
affair.
rean
j^remi|n
not
The
ever-waver-
enemies.
money
could intelligently of which comes first—the Amer¬
approval or disapproval.
ican egg or the American chicken?
they
our
never
by us
by other
These
ing policies delude ourselves and
present Ko¬
our
After all,
wasn't the
reassured that
defend
we
It
Korea?
would,
was
ok
Jan.
12, 1950, that the Secretary
State, Mr. Acheson, defined our
"defensive perimeter" in the Pa¬
of
cific
as
an
through
from the Aleutians
arc
Japan
Islands
to
cifically
and
the
the Ryukyu
Philippines, spe¬
exempting
Korea.^
O?
Korea,
Acheson said: "A guar¬
against military attack is
hardly sensible or necessary." Ok
this same day he stated, "In
antee
Korea
have
we
which
have
occupation."
American
have
taken great step*
ended
military
that
day,
our
Since
casualties
reached
in
Korea
107,000.
I do not stand alone in my con¬
cern
as
icans
of
sound
to
the
the
effects
lack
of
on
a
Amer¬
definite,
policy.
In M*
Jackson,
Miss., last
.f we giye Western Europe enough month, General MacArthur said:
These agreements have not been *rQrief1,cir.ric
transfusions she will
will ^vpntnallv
"In the field of foreign policy,
eventually
completely disclosed to the Amer¬ be
able to exist without our help. our efforts are largely confined
ican
people, nor even to their
But all the medicine in the world to the contribution of vast sums
elected., representatives in Con¬
will not effect a cure if the pa¬ which we do not have and which
gress.
They have never been ex¬ tients do not have the will to live. we must borrow, toward the reposed to the searchlight of an open
I believe strongly in the recent habilitation of
debate; they have never been
advice by former President Hoover the rearming of other natio s an
accepted by any democratic
that
now
is
the
time
to
rethe relief of foreign underpmlprocess.
The extraordinary de¬
evaluate our
position.
Perhaps lefed
velopment of this nation has been
„ 01 e
General
the
word
"evaluate"
or
"ap* continue to quote General
based upon its representative form
of government. The great strength praise" would have been better
w£
^
of the republican process, the colS1"?e*Jf cannot
desire to help the rest of th©
lective judgment. of the elected which has never
world in every reasonable way.
representatives of the people, has
In any appraisal, the first step But certainly that is no excuse
not been used in this, the most is to find
a basis of appraisal,
Continued on page 5Q
important problem of our times. What are we trying to do?
What
executive
secret
r e a c
h
e
d
at
those
agreements
conferences.
of
our
nation—in
the
hope
that
speech
foreign
at
,
MacArthur.^
Opens
HEIGHTS, N. Y.—
today;
children?
our
policy to plan fronfw
day—to guarantee only1
a^f d'
David Levine
David
to
serious
fixtures.
An
willing
trying to gain breathing
save
ate, to make Treaties, provided
are
°ur Foreisn Policy Not APProvcd
St. Louis offered to the public
on
outside of government who
ers
Nations
Gear-
by
Otis,
and tha£ ? will come on such and
such a date. There are few lead-
ognized by
Share
£ clear at 85-05 35th Avenue, to
acquaint'
Do?
are
busted benefactor
the only
as
case
number of persons covered "uftder
States
^ondt recently brought out before
the House of Representatives that
t°r the average American family
four persons the cost of the
£oreign aid extended by this nation is about $3,500. The total
authorized to date is $128 billion.
As the late Mr' Forrestal said' "A
many
done, the need for thorough¬
going
and
of
in
have
particularly in .yjew of York City,
broader
First,
issues
however,
are,
spective
as
particular
United
com¬
manner
difficult
the
There
deserves
the
illustrations of another sort.
very
that
for
companies except to
limited: extent.
Oh the
other hand, it will be recognized
a
respects
many
mendation
someone
else,
the government is
promoting a
principle which is essentially con¬
trary to our philosophy. ' *;
the
such "studies has even"been of being willing to tell the Eurorecognized by the President in his Pean nations in clear-cut, definite
recent budget message.
Congress 'an8uage that the end of our ecoin the past has had the help o£ nomic and military aid is coming
an
avoid
has
still leaders in
some
in
of contributory pension
plans which have many desirable
Not
founded,
willing to ignored.
which
on
well
rizea with the
Retirement system.
to
way
qualities.
and
fnvTommSnitv" °f
^
thor-
a
etnHv
oughgoing study r\f fVio ■Railrr^arl
of the Railroad
bene¬
as
liberties
foreign policy
planning for tomorrow—
to
what
The Constitution,
S Con.Res. 51, calling for
nncfhcrmncr
ees,
such
one;
Few
worse.
States of America's foreign policy
shifts with the winds.
It tempo-
in
of
fearsome
a
deep and sincere his beneficence
representative citizens in its deold-age income security liberations on
these matters, and
might even be a factor in
the minds
is
we
we
day
ad°Pted "2 ^ tb„Ut n0t yet acte?
and by the more recent
upon,
to provide
and
"depression"
"economic debacle" is
our
for the world of
Is it our
face the prospects or possibilities stitution reads as follows:
"He (the President)
these events which are threatshall
have power, by and with the
oning to come unless we change
advice and consent of the Sen°u * ways.
Congressman Van
order.
income
as
commerce
associations.
Are
are
tiently
under
the
OASI
program
and
under the Railroad Retirement Act
are
of
trade
expect
accomplish in Europe?
space, to
issues
existing laws and
benefits payable
regulations,
by groups work-
areas
a
are
Security,
Horsemen.
may
Long Range
Foieign Policy!
representatives in government,
good work has been done
insurance, and related mechanisms a.
pertaining to the problems caused thought.
illustrations
Let's Have
assume
tax
matters
on
.
in
various
we
to
Much
in
do
page
people and fewer
coordination,
as
a
consequence, there
strange inconsistencies in the
as
our
from first
We must equip
committees of these
organizations have long and pa-
and
laws
Continued
positions of
thinking on these
problems with our neighbors and
did not consider
we
broad
to
leadership
■-i*
.
These
government.
ourselves
Tax Policy to Social Security
and Insurance
selves as fully as possible with
this important area of citizenship
,«
Ld
^
50
The Commercial and Financial Chronicle
(1742)
Continued jrom page
what
49
once
was
American air
overpowering
an
Perhaps in buying time we have
Let's Have
a
Long Range
just postponed the day of reckon¬
ing. Can we afford to drain our
home.
at
economy
our
regain faith in our abil¬
us
bank¬
risking
ruptcy.
...
"Let
is
what
not
told
govern¬
our
have no guar¬
we
antee
that those reserves may not
some
day be turned against us-
when
to
Europe
sending
become the
not
may
ment
di*ide,
consuming desire to
jmp0verish and destroy the
Qf'
the world to make way for
the onward march of Communism?
a
us
-
ago
year
-
„
—
.
free
either
exists in human hearts, or
all the
they sent General Eisenhower to
Europe. It may be that the picture is clearer to General Eisen-
in the world cannot put it
hower today, after his year of see-
will
money
be
to
there!"
The
theory that charity begins
dore Roosevelt's day,
understood
well
so
what
but it is not
It
now.
General Eisenhower, in
his
recent
of
the
report on the progress
North
American Treaty
Alliance, said:
"The unity of NATO must rest
ultimately on one thing—the en¬
lightened self-interest of each par¬
ticipating nation." Then he added:
"It would be fatuous for anyone
to assume that taxpayers
will
ica
and
continue
to
of Amer¬
money
pour
into Europe unless
resources
^encouraged by steady progress to¬
ward mutual cooperation and full
effectiveness."
There is
which
parable in the Bible
at length with the
a
deals
necessity
is
It
in
Talents,
read
Chapter
25th
the
of
like
to
would
I
"For the
kingdom of heaven is
traveling into a far coun¬
as a man
try, who called his
an(j
We cannot
for years.
even
drain
to
re-
own
our
indefinitely to supply the
of
the
"free world"
with
sources
rest
and
money
If this is our
policy detrimental
arms.
it is a
policy,
to the future of
Let
country.
our
again consider this from
us
of wise provision
for the future. If the Commanderthe
standpoint
the
of
in-Chief
Head¬
Supreme
unto
for
unless
bankruptcy
reach
can
we
balance between what we
a
to
contribute
what
can
Europe
well
very
the question:
press
talents,
to
he
lantic? What have
the
money, money
or
will
At-
bought with
we
our
which has been
five
he
from
extracted
be
We
them other
that
had
re-
two.
erate
and
and
digged
in
the
one
earth
hid his lord's money."
You
will
reckoning
recall
that
of the
traded
their
with
a
the Master
made,
was
said to each
when
who had
men
not
using this
In
story in
the
by Harold Callender, on April 2, he said: "Amer¬
ican
policies have
been
much
criticized in Europe on the ground
that they have adversely affected
Europe's
stability."
In heaven's
what are we buying in
name,
We
ant; thou has been faithful
over
ruler
things,
over
will
I
make
thee
things."
many
But the third servant, who had
his
talent, he called a
buried
"wicked
and
and
took
which
the
Talents
that
would
we
do
stance without regard to whether
the recipients are
trying to help
in accordance with their
capabili¬
ties is the Christian
thing to do.
I do not conceive of
Christianity
philosophy of weakness. Yet
giving to those who will not help
themselves is weakness and abets
weakness.
Weakness is not
meekness.
There have always been
people
wanted
seems
we
We
who
we
not
to
are
to
"get into heaven"
earning their way.
It
without
the
me
will
only
will
we
choice,
afford
not
continue
we
to
as
far
as
help those
help themselves.
to
do
weaken
this,
weaken
the
trying to
European frontier.
Gen. Eisenhower
we
ourselves,
are
on
very
erect
If
will
Is
it not time to
on
the
European Aid
North
Atlantic Treaty
General Eisenhower
Alliance,
said, in ef¬
fect, that the United States could
afford
to
ability
our
is
not
"regain faith in
achieve
to
pour
good for
Isn't
our
own
it
billions
into
America,
about
time
and
of
had
we
an
appraisal of exactly what we are
getting with this policy of spend¬
ing, impoverishing ourselves and
weakening
our
credit for years to
come?
any
room
Russia's
score.
foreign
policy
is
en-
tangle of confusion
uncertainty.
Before World
and
a
War I
we played
simple role. We
to
a(jvance 0f Communist control
China
over
but
by
and
points
have
we
advance
Southeast
decisions
our
Asia,
on
many
forwarded
that
immeasurably.
The pressures we exerted in
nection
with
the
in the
terests
con¬
Netherlands
East
in¬
Indies, though
not
publicized,
have
had
farreaching and disastrous
conse¬
in
quences
the
spread
influences
southeastern Asia.
attitude
Com¬
throughout
results of
the
Chinese
better known.
are
in China that
was
of
The
towards
Nationalists
undermined
we
a
trol
of
none
Asiatic
our
policy? And
how many Americans are certain
of this
control
was
ex¬
ercised by agents of the Kremlin?
Or by
of those
ence
comparatively
guided by
those subject to the influ¬
We
were
do
agents?
know
those
who
freedom
In the
into
leadership—as
This
seas.
intervening time
thrust
been
of the
of
like
we
leadership,
have
we
role
a
world
it.
call
to
however,
has
definite limitations.
some
It
is
interesting to
appraise
European reactions to the results
of
foreign policy thus far.
our
leader
entitled
"The
In
to
statement
a
the
after
that
issued
recent
by NATO
Lisbon
the North Atlantic
will have
tion
meeting
organiza¬
"approximately 50
divisions in appropriate conditions
of combat readiness" this year:v?;
The
scoffs
at
this
.
real point at issue
here
to be: What is Western Eu¬
doing for itself? Are
rope
buy¬
ing real security by strengthening
Western Europe at such great ex¬
pense—and
selves—or
at
such
are
we
risk
to
to
we
cement
friendship
with
money?
Let
me
repeat
once
more
Gen¬
eral MacArthur's words:
"The will to
ists
in
money
human
in
the
What
has
billions
not
see
crease
European military
as
more
tended
to
statement
The "Times"
raising
what
of
What
have
money
and
Asiatic
let
now
Communist
resistance
to
No
but
in
I
vice
provocation
are
a
being
look at the other
us
dropped.
visers,
makers
the
ttrnr.
became
war
and
to
atomic
not
was
to
on
many
as
in
if
was
her
least
not
in
was
entrance
some
the
to
of
were
the
top
given to obtain
never
as
to
been
ad¬
policy
Washington, prior
conference, where
There has
explanation
what
hold
the
most
man
used.
great
He
has
counsellor
people
so
to
so
little.
adequate
why the
to
what
on
in Asia.
course
the
for
us,
American
Summary
Let
summarize what
us
been
the
a
a
American
should
be
in
rest.°* the world, have
agree-
policy
the
our
The
ideals,
behind
such
a
the
that it
success
if
na^ons of the world had
e same_ Meals and desires that
we
ourselves hpve had.
should forget that
None
of
Alger Hiss
played an important part in the
formulation of the United Nations
San
Francisco., This part per¬
may prove to be
PP
than
* e fr^ure of
a
more
are
at Yalta.
told that
now
Ambassador
1939 that
harm-
country
our
the part he
played
And yet we
was
Umteci Nations has
D6CH
V 0 T
JT
solicitous
of
of the costs.
given Russian spies
to
free
travel
ate
from
day
an
Third, in carrying out this pol¬
icy of expediency we are weaken¬
ing ourselves economically and
militarily, with no assurance that
we
gaining any real strength
European allies.
are
among our
Fourth,
such
our
the
board
expense.
for
the
door
United
are
tax¬
are
in
Russia,
And, third,
it has given the
Kremlin
ing
policy is
a
com¬
pletely in accord with the Russian
objectives,
in
down
Manifesto
—
financial
the
weaken
laid
as
Communist
the
that
a
is,
mechanism
capitalist system, and it will
destroy itself.
In
short,
without
the
we
have been voyaging
compass
only thing
that if
will
rudder,
or
we
are
and
of is
sure
continue, ultimately
we
out
run
of
fuel,
we
founder
or
aground and be destroyed.
run
If
this
ask:
estimate,
or
appraisal,
pessimistic, let me
overly
seems
Upon
what
basis
will
any
But
the
that
add
me
people
can
be drawn?
other conclusions
have
future
American
its
course.
Unfortunately,
has
such facts
chosen
appraisal from
an
licly.
to
make
If there
them.
rely
the government
as
known
pub¬
other facts, the
are
public has not
been informed of
And if there
facts which
are
bear upon these questions, then it
is about time we heard them.
Those
site
who
from
What
stitute
share
mine
do you
view
a
may
oppo¬
ask:
suggest
as
The
foreign policy that places
a
interests of the United
first.
To
achieve
this
prepared
men
States
we
must
policy.
long-range
qualified men,
able
sub¬
a
alternative policy?
best insurance for our fu¬
or
ture is
the
This
by our best
of unimpeach¬
integrity and Americanism,
if they are not popular in
even
administration circles.
It must not
try to mold the rest of the world
into the pattern we think it should
be in.
of
It must recognize the
true
It must not tax
into
accord
right
individual liberty for our
citizens.
ple
slavery.
with
It
our
peo¬
in
Constitution.
the
be
It
must
must avoid secret executive agree¬
ments.
It
must
not
place the
United
Nations above the United
States of America.
William Sholten Now
With Shields i Go.
(Special to The Financial Chjonicle)
sound¬
exposition of
their specious doctrines and
their
CHICAGO,
Sholten
with
bers
has
Shields
111,
—
William
become
&
A.
associated
Company,
mem¬
of the New York Stock Ex¬
change. Mr. Sholten was formerly
a
partner
in
Sholten,
Knight &
Woodruff,
In the past he was
Co. and prior thereto in
Sholten & Co.
with
.
opportunity
an
next November to decide upon
Russia
open
not permitted to travel
at
day wnatever
is offered.
to
breathing space
not
always
States, spies whose salaries
largely paid for by American
payers,
although Americans
even
un¬
an
in the absence of a
foreign policy, we oper¬
basis of expediency, buy¬
a
on
ing
Second, it has
within
of
Second,
definite
First, it has arranged for the
Americans to bear the
largest
share
is
in¬
was
Hiss
an
trustworthy American
,
feints
and
moves
be
Sp
have
do
we
trustworthy, unscrupulous enemy.
must
organization.
could only have been
which
by
government
our
apparently a policy of a militarily
impossible, panicky containment,
the scope of which -is dictated by
a
were
ap¬
foreign affairs can be measured.
Whatever
have
were
of
decisions
been
we
felt
United Nations
policy
foreign
range
the
our
I believe that
which
our
praisal seems to indicate.
First, we have no definite long-
upon
international relations, not
in Europe and in
Asia, but
Nations
by their
and
decisiveness since that time.
plan is not
not
Our
*n
we
outside the government must
Arthur's advice and then follow¬
ing it.
only
Nations
foreign
entered
our
able to de¬
problem in the Far East can best
be solved by
asking General Mac-
everyone
bomb
I know that the dangers
at
Yalta
much
the
clear
first
involved
to
Russia
win
went
with Japan.
war
PllPfirt
that
the
will
that
statesmanlike
formed in
1945
just
of
time
the
at
United
the
convinced that the ad¬
of the
velop
haps
Situation
was given to the
advantages
disadvantages of bringing the
after
Asia
believe
people
ation
to
degree by
will
weakness
the
by
policies
let
knows
one
future
American
fact
lesser
or
Travelers, the results have
been disastrous.
It is difficult to reach
any con¬
clusion as to how much consider¬
The
policies
by loyal Amer¬
by Americans influenced
greater
a
Fellow
a
"the
side of the world.
clear
Russians have produced
to
at
progressively
have
to
terrent effect."
needed
we
or
those
Na¬
be completely
overshadowed by the damage re¬
sulting from the conduct of the
Russians which was made possible
formulated
icans
us
of
with the minimum amount of de¬
put
result
amounts
amount
cannot
the
impress
goes on to suggest
Russians into the
of dollars
in¬
was
"token army" seems to offer
And
whether
United
the
from
they
seriously impaired by the United
impress the world, the
"Times" says, "it will not
the Kremlin."
maximum
matter
were
power.
money and more arms.
If the N ATO
TVifl
been
into
troops
Neither do we, unless the United
States supplies more men, as well
the
world
de¬
how there can be any in¬
in the strength of Western
all
or
Britain
more
hearts,
many planes with which to bolster
the
send
ex¬
Perhaps we have bought some
time, but at what price?
We
bought time in Korea and in that
up
and
be free either
poured into Europe?
we
bought with our
efforts?
time the
divisions
the NATO pool, the "Times" does
and
it there."
these
divisions, and with
contributing only a scant
clining to
close to the formulation
international policies. But
ernment, General MacArthur is
German
our¬
sending good
money after bad in a hopeless ef¬
fort
than half that number. With
dozen
our
no
fig-.
It says
France
of
subjected to abuse by
* £bunsellor of our government for
mo/e than a year- Even if he is
the total will4^4a«V
^counsellor to our gov-
"Times"
ure.
out
persons
Phantom
Army," the London "Times" refers
were
benefits should come to
peace and welfare of
any
world
of the
that
other
future
It
How many Americans are certain
as to who has
really been in con¬
that
of her spokesmen.
meshed in
that
The
but
shield
In his report on the state
of the
not
foreign, domestic, and over¬
policies are adversely
affecting our own future stability.
fiscal
concerned, is quite clear.
cannot
govern¬
ment's
all
seems
a
who
the
questionable good for the world,
should be
evaluated, or if you
prefer "reappraised"?
appraising our
foreign policy. We have been told
that our giving away of our sub¬
more
that
given him.
well to consider in
as
know
destiny," and to admit that what
lesson in this Parable
a
this
foreign policy is clearly outlined
—by her actions and by the state¬
our
pre-
opposition
great dike against the spread
of Russian Communism into Asia.
longer
no
on
.
all
servant,"
the single talent
had been
There is
of
slothful
away
have
doubt
have
we
the
more
Europe?
talents:
New
"Times"
serv¬
few
We
for
a
year.
recent
a
"Well
a
Manifesto
eign policy today!
bought
generosity to one day a
instead of the 366 we are
done, thou good and faithful
•„
have
our
York
"But he that had received
:
certainly
lasting friendships with our
money, because money does not
buy friendships. If we are going
to play Santa Claus to Western
Europe and the world, let us mod¬
any
received two, he also gained other
went
public,
vigorous
meant
year
likewise
a
cause
talents.
"And
sented
sympathetic to the Communistic
two,
made
If
the
at 'east, for the benefit of the
our
blue-print of Russia's for¬
But
across
Communist
the
the
ments
men
MacArthur smce V-J Day, our posit.on m Asia has steadily deteri^ated. Since V-J Day our policy
has, been two-faced. Ostensibly,
at the United
freedom-loving
aimed
and
countries.
questioned the integrity of anyone
five talents went and traded with
and
And
is
we
Despite
ish concept of world trade, which
"Then he that had received the
same,
Of Russian Policy
But
cause,
thte magnificent handling of the
^tuaAtl0" m. JaPanT ^ General
munistic
Communist Manifesto—Blue Print
the
the Monroe Doctrine and the Brit-
another one; to everyman
the
prescribed by the "CornManifesto," written more
than one hun(jred years ago by
Marx
and
Engels.
Weaken the
capitalist world, they said, and it
win destroy itself!
influential?
too
what
the
and to
accord¬
ing to his several ability; and
straightway took his journey.
another
left
States
1952
Thursday. April 24,
.
invectives
case,
recommend
know the results today.
course
munjs^
the past State
of
Hiss
matter
no
_
any
of
results
the
been
have
Alger
confusion about the
no
AAV
stronger, then let us re¬
member that this is exactly the
ing
Department policies
of sending billions of dollars and
What
is
weaker, while Europe is not grow¬
Europe,
strengthen
is doing to
strengthen itself, then I think we
and
he
the
was
goods. pockets of every American, even
those yet unborn?
gave five
servants
own
one
be certain
we can
If
policy of our enemy,
ourselves
to
gi
permit
grow
we
quarters of the Allied Powers in
Europe feels that we are heading
and delivered unto them his
"And
thing
one
there
continue
after
that
advisers
American
Of
foreign
thousands
part of this parable:
a
rest
statement
his
Nevertheless
Parable of the
the
Matthew.
Saint
self-
enlightened
for
interest.
j°gSRussia>s
pojnts up what all too few Amerjcang have been saying for months
is
self-
called "enlightened
we
interest."
forward-
tools of the Kremlin in
close hand
ing Western Europe at
at home was understood in Theo-
his
Roose¬
.
tions
ity to achieve our own destiny—
charity begin at home!
did
failed
If
Mr.
and far-reaching agreements? Was
and let
"The
health
Yalta.
that
the
that the weapons we are
This
velt's
for
concluded.
were
said
against entering into such serious
eiueune
i>enuut>
today s
ticularly when
without
Europe
been
"phemeraVIeSrfty-par-
Foieign Policy!
wrecking
Yalta
at
has
buy
future reserves to
nrpspnt and
l£r
ments
It
superiority.
.
E. F. Hutton
& Co. and
the
First Boston Corporation in New
York City.
-
Volume 175
Number 5110
.
.
net income
Bullock
Mutual Funds
Expects
the
try indicate
a
importance
renewed strength and stability. This is of particular
this stability factor occurred during three
that
marked
were
bjr unsettled market conditions, an
economic development during the
months, a clouded international picture and a puzzling
perhaps explosive domestic
. ■' ♦
uneasiness about the country's
next nine
and
compiled by the National Asso-
political situation.
Gross
shares
sales
mutual
on
totaled
Ration
Investment Companies,
demonstrates an across-the-board
funds'
$198,234,000
com-
decrease in repurchases not only
r * e
but for every
&roup within the industry and for
^very comparative test than can
be made.
pared with $177,696,000 in the first
quarter of 1951, for a gain of nearly $21,000,000. In addition, gross
sales were over $4 million larger
than the preceding quarter.
Repurchases
of
shares
Total
this strength factor by
drastically to $48,795,000
from
$104,469,000
in
the
first
quarter of 1951 and from $62,150,pounded
QQ#
l^ter
falling
in
m
000
uuu
Net
net
the
xne
fourth
lourtn
sales,
a
growth
the
stock
mutual funds
this year nearly double that of
the comparative figure in 1951 and
sales
the
for
in
first
the
declined
grQup
in the last
quarter of 1951 and 2.77% in the
1.92%
quarter of last year.
for
specialty
and
Bond
was
fund
group
repurchases, which in the past
of 1952 stood at $149,439,000 com- have been in the heaviest seas,
pared with $131,889,000 in the last were only 2.80% compared with
quarter of 1951 and $73,227,000 in 3.34% in the preceding quarter
the first quarter of last year.
and a phenomenal figure of 9.2%
Analysis of first quarter figures, in the first quarter of 1951.
Mutual
.
quarter
Funds' Repurchases as
stock
.
stability
power
utilities
has
relation
to
4th
3rd
2nd
1st
4th
3rd
2nd
and
B
1951—off
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
1952
103
1951
1951
1951
1951
1950
1950
1950
1950
1.99%
2.75%
2.62%
3.92%
3.27%
2.70%
3.71%
2.64%
(Fund Group Repurchases
Stock™.
Common
1.18%
45
1.92%
from
134,963,000,
32
1.10
1.24
1.76
1.59
1.93
1.32
1.44
26
2.80
3.34
3.99
5.56
9.20
7.09
5.30
Mutual funds' repurchases as
percent
clined
of gross sales
remarkably in
of
quarter
this
a
also de¬
the first
compared
year
with tne "last quarter of last year.
The
is
the
repurchase
when
remarkable
with
pared
the
in
decline
rate
first
com¬
quarter
of
1951.
all
For
rate
was
three
as
the
of
compared
funds,
percent
a
25%,
months
earlier
repurchase
sales
with 32%
gross
and
59%
a
ing
a
ago.
For the common stock group
of
comparable figures were
against 29% ninety days
22%
as
ago
and
months
twelve
59%
were
amounted
<
to
16%
only
sales this quarter.
repurchases
of
3 Vz %
the
be
can
1.76
with repurchases at
of gross sales.
In the last
121%
the figure was 67% and
today it stands at 46%, almost
one-third of last year's statistic.
,
All
expected
shares
of
were
attained
of
GEORGE
A.
during
tax
versity
the
of
Board
of
meeting
to increase
holders
on
JR.,
March
on
of
31,
103
mutual
1952,
were
$3,357,576,000,
an
increase
of
$227,947,000 over Dec. 31, 1951
and $693,821,000 over March 31,
1951.
new
first quarter
shares during the
of 1952 amounted to
gross
Continued
In the preced-
on
at
to
f" the
annual
Investors'
Sovereign
April
Uni¬
elected
were
Directors
stock¬
page
52
COMPANY
DIVIDEND
Massa¬
of
"Investing
Investors Trust,
Money."
Your
June
Fred
8:
Brown, Jr.,
E.
Vice-
Service Cor¬
the Union
President of
poration Group of Investment Com¬
panies,
"Choosing
Your
Invest¬
Guests:
E.
Axe,
W.
E.
W.
Edward Johnson, II,
Management & Research
Co.; James H. Orr, Colonial Man¬
agement Association; S. L. Shelley,
The Keystone Co. of Boston.
&
Co.;
National
Investment
An
Open
securities
Details and
Prospectus
vpon
series
request
NATIONAL SECURITIES
A
York 5, N. f.
REPORTS
Approx.
When
Holders
Share
Company—
Bid Price
Payable
Of Record
10c
$9.50
5-15
4-29
18c
Fund
Rund
Limited
Trust
22.71
5-26
4-30
6- 2
5- 1
5-15
4-15
5-26
"■'•';•••
5- 5
10c*
—
9c
Diocesan Investment Trust Shares
Diversified Corn. Stock Fund—
7.5c
Fund—
18c
5.07
13.02
Diversified Pfd. Stock Fund^—
15c
11.38
Diversified Investment
Other
Series—:
Automobile
12c
Aviation
10c
7c
8.48
9.69
9.69
Shares
"
"
"
14c
10.46
"
12c
17.13
"
7c
10.66
"
14c
14.96
"
"
"
"
Bank
—
stock
Building supply
Chemical
—
f
—
Corporate bond
Electrical
10c
Food
5c
9c
13.69
15c
14c
11.87
12.53
12c
22a
-
13.27
9c
Public Utility
of
,
"
Institutional
Shares,
Ltd.
"
Distributed
by
ft
HARE'S
"
"
RECTOR
19
LTD.
8c
8.37
15c
STREET
10.08
Tobacco
Dominion
&
Anglo
"
"
"
INC.
A
Mutual Investment Fund
4-21
(quarterly)
$8*
4-29
$7*
(increased)
preferred
Y.
Nation-Wide
Investment
Extra
5%
N.
SECURITIES COMPANY,
Corp., Ltd.—
Common
6,
"
9.32
10c
Steel
YORK
Prospectus may be obtained from
the above or local dealer.
7.47
13c
-
equipment
"
NEW
9.63
—
Railroad
Railroad
Diversified Preferred Stock Fund
Funds)
Investment
(Mutual
12.04 '
29.96
-
Pacific Coast Investment Fund
'
Shares
Insurance Group
Stock and Bond Group
"
11.94
±
Merchandising
Diversified Investment Fund
.
17c
Agricultural
Oil-
Manhattan Bond Fund, Inc.
Bank Group Shares
J-'-j-,'-"
.■■■
Metals
Fundamental Investors, Inc.
Aviation Group Shares
Funds—
Diversified
Machinery
.
Trustees,
Board
of
man
chusetts
investment income
Government bonds
-
Chair¬
RESEARCH CORPORATION
21'.
Insurance stock
\
Stocks
Griswold,
of
Howard
S.
Economics,
of
Pennslyvania
of
Treasurer
Dr.
and
Professor
Patterson,
Canadian International Investment
the
1952.
assets
net
Common
Merrill
1:
June
Group,
Are
Account
PROGRESS
BAILEY,
Investors
Sovereign
quarterly payments from net
unless, otherwise noted.
are
Blue Ridge Mutual
Boston
t
first quarter of
Too
Anderson,
R.
Distributors
of
top-
up
Div. Per
mutual
of
listings
Investment
high records in total assets
sales
and
funds
Herbert
25:
"When
High?"
Inc.,
Investment
the first in
year as
INVESTMENT
quarter
New
"The Business Out¬
look."
capital structures.
while
energy
and
19%
were
of
Research Corp.,
Program
long time in which electric util¬
a
ities
Henry J. Simonson, Jr.,
National Securities &
18:
May
Chairman
capitalizations. More con¬
servative
depreciation
practice
has contributed
toward sounder
heavy
increased
stabilization
clean
to
available
were
PERSONAL
mark this
4.33
ago
Sales of
fund
or
income taxes at 52% and
of
stitution."
120 Broadway, Now
earlier were 26%.
specialty funds
"under
water"
only
12
months
earlier.
Balanced
they
quarter
year
funds
45 funds,
may
The 26 bond and
Total
year
$3,930,000,
alone
expected
The
and
2.31%
3.54%
2.26
5.76
2.32%' 2.16%
2.77%
2.03%
2.84%
Fund—
&
reported
20.9%,
up
Co., "The
Prudent In¬
Management
Man
dividend
$938,827,000 to $1,-
taxes
Partner
11: George Putnam,
Putnam
Prudent
with high
preferred
Percent of Group Assets)
as
Specialty
Balanced
interest and
rates. Now,
under SEC regulation the utilities
have
accrued
large
non-cash
charges for amortization which
burdened
0.5%, from the previous year. On
an
annual basis total taxes in¬
creased
out
during former depressions
utilities
were
heavily
data, Class A
only
Hugh Bullock, President
Bullock,
"Collective In¬
4:
Calvin
vesting."
Axe
Calvin Bullock also pointed
that
$818,013,000 composite net income
for
May
of
Fidelity
Federal
latest
utilities
electric
Abbott & Co.,
Stocks?"
Lord,
Other
Conservative
Structure Is
in
increase
of
ments."
cushion."
the electric
impressive in
Commission
Power
considerable
afford
they
past
the earning
huge
the
on
than in the
changes are less rigid
the
"Based
1st
Qtr.
1,45%
in Group
Funds.
been
the
Although
available.
taxation.
repeal
1st
Funds
Bond
Percent of Total Assets)
Qtr.
No. of
of
generating unit
demand
the most economic
of
adds.
cost
industry can
formerly for
than
on
a.m.
Prankard, Part¬
"Why
April 27: Harry I.
May
the
that
10:30
-
Invest in Common
President
interconnections
power pools are so
further
reach
Earning Power Impressive
The
"
'
•t
AH
as
higher
The study says that
Federal
(Total Repurchases
the
offsets
senior capital," the company
eco¬
dropped.
be
extensive
stock earnings
common
least
the
time
modern
by
minimizes
value
book
over
dilution of
first affected, while at
"Furthermore,
ability of
companies to sell at 30 to
many
are
generating units are the
nomical
the
and
10:15
IWtay
same
first to
prices
a
designed so
declines the lowest
load
as
the
possible, the com¬
will
Station W O R
on
date indicated:
ner
of
steps are
present level of common
January 1, 1950 to March 31, 1952
.
that
33.6%. V."
by quarters
.■
"The
depression,
stabilizing in¬
Rate structures
states:
pany
50%
base,
the increase in net
and
Federal
Percent of Assets
currently
of
income appears
assets conand
1.93%.
group
1.24%
with
trasted
Repur-
funds
balanced
of fund
1.10%
'
first
favorable
1>18%
to
the
basis
overall
economics
effecting
thus
originate
increase
to
severe
a
fluence."
the
industry's
tax
better
a
continue
during
even
operational
appears
and
costs
that sales to residential
customers
decreased
"Experience
The company says:
due in part to expanded
facilities,
and
3 92%
3?o<*i
chases
than the
fourth quarter of 1951.
Net
percent
a
•
and
compared with
1^dustry, was in the first quarter fjrst
of
almost $18,000,000 greater
as
the
indicates
increased
for
the outlook
revenues,
qp"f„
Repurchases for the common
Quarter of 1951
quarter of 1951.
figure indicating the
of
repurchases
C01Jl" of total assets declined to 1.45%
from
Calvin Bullock.
With
On Mutual Funds
Calvin Bul¬
opinion of
industry in the event of a depres¬
tric utilities in
because
months
the
sion.
in revenues
anticipated for the elec¬
a study released by
are
Schedule of Broadcasts
The following programs
12-13% in net income during
1952
First quarter figures just released on the mutual funds indus-.
growth,"
lock, the utilities are better forti¬
fied than almost any other major
To Increase 10%
By ROBERT R. RICH
Increases of 9-10%
result of
a
Industry Is Crisis Proof
In
and
as
study points out.
Utilities' Revenues
Mutual Funds Industry Shows New Strength
51
(1943)
The Commercial and Financial Chronicle
.
4-29
4-21
$1.25*
6- 2
5-15
Franklin Custodian Funds—
Income series
Diversified Common Stock Fund
5c
_—
Bond series
9c
_—
5-15
5-15
5- 1
5- 1
35c
12.20
5-31
4-30
9c
15.82
5-31
4-30
9.84
5-31
5-15
4-30
4-30
4-18
4-23
Institutional Shares, Ltd.—
Aviation
Stock &
Group Shares
Bond Group Shares—
From investment income
PROSPECTUSES
AVAILABLE ON THESE
MUTUAL FUNDS
From
Lexington
realized
profits
Trust Fund Shares—
For
16c**
10c
Puritan Fund
48 Wall Street
Hugh W. Long and Company
New York 5
Incorporated.
New York
Chicago
12c
—
4-25
Railway & Light Securities—
25c
19.00
5- 1
*Payable
Los Angeles
in
Canadian funds; tax deductions
resident tax 7%.
Non-resident tax 15%;
**Reported in error last week as 6c.
at the source.
a
your
free prospectus
write
investment dealer Off
CALVIN BULLOCK
Established 1894
One Wall Street
New York
52
(1744)
The Commercial and Financial Chronicle
action
listed and analyzed.
If
find out what your pros¬
are
you can
pect wants, you
Securities Salesman's Corner
Continued
As
write this
I
I have before
Buy
week's
me
Because He Wasn't Sold"
—
column,
copy of a talk
a
character
the
closing the
Some suggestions for
sale
"He Didn't
analysis,
Why not drop
line to the
a
Securities
National
overcoming
summarized by Mr.
also
are
Laird.
Research
&
"cost"
objection, and a most Corp., 120 Broadway, New York 5,
given by Douglas Laird, Director helpful observation regarding the N.
Y., and ask them to send you a
and Sales Consultant of National secret of
selling—which as you
Securities
&
Corp.,
the
at
The four
all
cause
He Wasn't Sold."
primary motives that
individuals
dinary
also
always
can
of
costs
a
as
government,
inflationary
equitably
about
more
job.
our
San
20,
Continued
from
51
page
1952,
Whether
are
in
selling Mutual
Funds,
indi¬
vidual
ties,
securi¬
both;
or
I
believe
if
you
for
Douglas Laird
a
that
send
copy
Net
this
talk
find
helpful ideas on all
phases of salesmanship.
Mr. Laird
developed what he
terms
the
"Three Legs of
the
Platform";
the
product, the
human element.
them
is short
namely
the
clock,
If
one
of
the sales¬
any
weak
or
and
will slip one way or another.
He discusses the
product which
is in this case the "Mutual Funds."
Percent of Gross Sales
as
Number
4th
1st
3rd
4th
1st
2nd
3rd
2nd
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Funds
11)52
1051
11)51
11)51
1951
1950
1950
103
Qtr.
1950
1950
25%
32%
50%
53%
59%
61%
53%
64%
45
22
29
52
49
48
50
47
75
39
Balanced
32
16
19
28
26
26
27
23
32
22
26
46
67
86
108
121
141
112
91
68
Bond &
_
Specialty
40%
man
He
gives
sound
for
reasons
be¬
OPEN-END
NET
ASSET
REPORTS
value
Fundamental Investors
of
share of
per
was
$20.27
rates in general; to
heavy new financing.
Increases
oil and
made in natural gas,
were
or
when it
the maintenance
selected
railroad
stocks
common
preservation
of
capital¬
our
istic system of free enterprise.
1st
Qtr.
,
Common Stock__
Funds
asking for relief from equitable
taxation, it is my opinion that a
than
more
100%
term
capital
would
gains
result.
v/ithout
increase
the
in
obtained from long-
revenue now
and
Of
transactions
it goes
course,
saying
corporate enterprises gen¬
our
erally.
To the extent that the
period is shortened, to that extent
will investment risk, in this pe¬
The advantages to be gained by
inequitable,
clearly
and
of
All
present tax
our
twild complaint against
militates against
January 1, 1950 to March 31, 1952
Fund Group:
no
heavy" tax
the
by quarters
It to be full of
a
express
such - as
three
again, without
do so would be but crying in the
during
the March, wilderness, so far as real hope for
riod of domestic and international
quarter,
compared
with relief is concerned.
$131,889,000
for
the
previous
There is, however, ample cause uncertainty, be reduced; the li¬
quarter and $73,227,000 for the for complaint and justifiable basis quidity of equity investments be
first quarter last year.
for demanding prompt remedial magnified, and the volume of such
action, when a specific tax is transactions multiplied.
Repurchases
that
will
to
and
some
1952
sales, after redemptions, were
Mutual Funds*
in
$149,439,000
$198,234,000,
compared
with
$194,039,000 during the last quar¬
ter of 1951 and $177,696,000 dur¬
ing the March quarter a year ago.
of
you
Salesmanship
criticisms of
make
Mutual Funds
in¬
terested
you
Here
to
that adoption of
structure which have been brought this proposal would be beneficial
forcefully to my attention in my not only to the Treasury, but to
analysis of our corporate life.
I investors, the securities business
in
Francisco,
Feb.
period,
months.
And
six-
present
shorter
reduc¬
money.
that taxes should
comments
the
requirement
imposed.
few
from
by
pressures
I have stated
be
duced
months
Criticism of Present Tax Structure
Fund
Conference
but
Not Excessive
capital gains period should be re¬
combating
ing the total supply of
some
Mutual
of
means
this connection I wish to make
learn
take any
to
We
of meeting the extraor¬
as a means
of "He Didn't Buy—Because
copy
know is "motivation."
Research
Thursday, April 24, 1952
.
12
page
Federal Budget
needs and desires.
"to
.
then direct his
can
attention to the satisfaction of his
By JOHN DUTTON
from
.
adopting
proposals
these
far
so
outweigh the benefits the govern¬
ment
presently enjoys under
existing tax laws that it is diffi¬
consider the double tax on cor¬ cult to see why such amendments
porate dividends—a shareholder have not been adopted, It is to be
not only being taxed on the net sincerely hoped that in the near
income of the corporation in which future, the Congress will do
he holds his
shares, but again something about it, not in the
when a portion of that income is interest of the securities business,
example
an
distributed to
No
other
him
as
dividend.
a
individual
of
form
As
inequity,
patent
of
in¬
the
in
incidental
the
of
beneficiaries, but
the public and
enterprise, which now
interest
free
of
What do you do with
your
time?
How do you organize it?
come, whether it be rents, royal¬
of their improved earn¬
ties, interest or other, is subject stands in need of confident equity
prospects.
The increase in
to such a dual assessment.
investors to buy the plants and
and of 14.4% compared with the paper stocks was largely in com¬
If Congress were intentionally to wheels and tools which supply the
panies concentrating on household
corresponding figure on March 31,
seek for a means of destroying the jobs we need and to preserve and
products.
1951.
incentive
of
investors to
place increase the high standard of
In the first quarter, net assets
WALL STREET Investing Corpo¬ their funds in equities, it could not living to which our people have
increased from $115,475,000 to ration
reports total net assets on have devised a better or more ef¬ become accustomed.
Why is it
$127,755,000;
lieving in that product.
It is true
that you cannot sell
anything un¬
less you can believe in its eco¬
nomic justification.
Next, he takes
leg number
up
two.
time for
some
top salesmen have
selling appointments, for
research,
March 31,
on
3.8%
since
pany
1952,
the
increase of
an
first
the
of
year
shares of the com¬
by 34,400 in¬
owned
were
study, for record¬ vestors on March 31, 1952, as com¬
keeping, for their social life, for pared with 31,676 individuals and
their family and
community ac¬ institutions who were sharehold¬
tivities, and are in the highest ers at the end of December, 1951.
income brackets, yet there
are
Largest holdings of the Fund by
other
for
salesmen
who
enough time and
est livelihood?
made for
A
have
never
only
earn
mod¬
a
suggestion
is
gaining sales efficiency,
through the
of
use
simple plan¬
a
ning
device, that should assist
-anyone in developing more "clock
efficiency."
Mr. Laird makes the
that
wager
doubled
if
sales
your
follow
you
be
can
this
sug¬
gestion for
one full month.
The third leg of the "Salesman¬
ship Platform,"
Mr.
Laird
terms
industries
natural
roads,
in
were
petroleum and
gas, public utilities, rail¬
chemicals and drugs, and
electrical and electronic companies
which, together, represented 53.3%
of assets
March
on
increased:
was
automotive, electronic, petroleum
and public utilities. Re¬
and gas,
ductions
in
investment
ings
March
31, 1952, of $3,425,203 com¬
pared with $2,432,503 at the end
of
March
standing
247,270
share
last year.
holdings
Shares out¬
March 31, 1952, were
on
and
asset
net
value
per
fective
the
in
standing and net asset value
share was $12.56.
per
accomplishing
To many investors
middle
those
income
afford to
equity invest¬
involve,
the
prospective
in corporate earnings is so
above,
who
and
group
ers' Trust of Boston on March
31,
to
0
,
comprised
assets
in
71.7%
March
on
of
31,
net
total
1952;
essential
that
it
able
be
corpo¬
undistributed
war
profits
and
corporate
allow¬
depreciation
supplied about 60% of the
requirements
of
domestic
ances
total
rate
One point in
particular I believe should be em¬
American
Power & Light, Inter¬
Petroleum, Merck, Moto¬
Owens - Corning Fiberglas,
national
rola,
phasized and reemphasized.
It
has been my own observation that
if you can sit around a table with
Southern Natural
your prospect,
disposed
if you get out
your
and
Texas
Utilities.
The
certain
holdings
of
cluding
Gas, Studebaker
American
Fund
in¬
pencil, if you have some charts,
printed matter to show him, if
you can ask questions and write
Credit, Consolidated
Edison, Humble Oil and Safeway
down
Stores.
or
the
some
answers,
even
make
on
or
simple diagrams
plain A $15 MILLION
increase in total
sheet of paper while you
tog,
you
are
going
a
talk-
are
to
increase
interest and hold attention.
Your
chances of making yourself under¬
stood and, equally
important, that
will understand your pros¬
pect, will be much greater than if
you
you
the
sit in
room,
a
chair
and
on
he
lodged in another
is
one
side
of
comfortably
way over in the
corner.
Mr.
that
Laird
we
natural
us
rightfully concludes
have within ourselves the
resources
that
better salesmen.
some
of these
can
He
resources:
make
mentions
Industry
—resourcefulness—imagination—
receptiveness
determination
pleasantness and sincerity.
Then
—
he
offers
some
self-analysis
There
are
and
Telephone,
Commercial
—
suggestions
for
improvement.
on
tutions
were
number
greater
full
It is
increase
gests
that
This
increase
in
net
assets
lington
was
Fund
recorded
in
the
for
this
50%
1951
and
investment
above
new
three
holders
were
added
Net
$20.42
asset
same
year.
share in the
Jan.
period increased
from
$20.02
value
a
per
share
on
1, last.
divided
into
stocks; 24%
and
During
63%
in
common
investment bonds
in
preferreds; 1%
tion
bonds
and
12%
in
S.
U.
investments
in
the
preferreds;
and
and
cash.
ment
Fund
in
reduced
metal
machinery
the
and
common
mining
stocks
beginning of the
investment
also
invest¬
year.*
and
in
telephone stocks
reduced on expectation
or
Abolish
during the quarter,
who increased
quarter,
total
net
$115,475,000
The $12,000,000
than
the
of
the
Fund's
quarter
shareholder's
Fundamental
more
on
with
1951;
$3,500
1940 and
$3,600
in
investment
Investors,
than $3,700.
pares
obtain
the government,
to
in
1945;
$1,200 in 1935.
This
Inc.,
com¬
Probably
could
be
no
given
to
$1,400
'
in
of
this
ill-conceived,
such
possible,
at
or
abolish
to
unfortu¬
and
perpetuated
If
double
is
abolition
politically
taxa¬
bor,
allow
and
credit
expedient,
in
some
not
follow
as
a
the
Canadian neigh¬
investors
a
appropriate
tax
per¬
centage of the dividends received
on
common
stocks.
credit would provide
Such
a
an
the subject of equity
investments I should like to make
one
tion.
further
I
constructive
believe
that the
Joint
Civilian
Con¬
been
has
held
regularly
the
of
by
Secretary
Defense
the
during
past
four
and
is
program
to
years,
a
acquaint
ci¬
leading
vilians
all
from
parts of
country,
the
Thomas
representing
Graham
the
industry,
professions, and all other cate¬
gories of civilian endeavor with
the problems and status of the
Department of Defense and get
their
views
on
these matters.
is
Graham
Mr.
a
of
member
Conference Number Nine.
Joins H. M.
to
The
Byllesby
Financial
Chronicle)
pany,
Salle
west
associated
Com¬
Incorporated, 135 South La
Street, members of the Mid¬
become
has
Jr.
H.
M.
Stock
formerly
Byllesby
and
Exchange.
with
Blair,
He
wag
Rollins
&
Co., Inc. and A. C. Allyn & Com¬
pany,
Inc.
Joins Davies Staff
(Special to The Financial Chronicle)
SAN
Roman
MATEO, Calif.
is with
—
.
Mafeo
Davies & Co.,
100
Benjamin Franklin Court.
tax
important
equity investment stimulus.
on
been
Alumni
practical,
least, the Congress might,
our
The
ference
ling,
of
the system
the
Conference.
with
than
the
of
CHICAGO, 111.—F. Robert Vier-
stimulus
greater
enterprise
While
December,
Taxation
of
has
Ky.
President
(Special
free
March 31, 1952, the average value
was
or
Dividends
example of
each
un¬
recession
forced
Double
temporary
in
conse¬
an
all agree should be only
we
each
greater
end
market,
of
event
their funds from
which
been in existence.
since
The
the
depression;
total net assets at any time
during
the first 11 years of the 20 it has
the
debt
business
foreseen
tion.
of
The
in
quences
total
$127,755,000.
At
the
resulting unfortunate
to
is
into
more
nately
apprecia¬
Governments
the
and
with
assets increased from
gain
The report showed
was
to
$193,930,722 at the close of their previous holdings.
last
to
day
me,
the last resort.
shareholders
exclusive of those
on
business
of
to
daily operations, 36
of
$209,010,-374
a
year,
number
from
at
owners
com¬
months of this year.
The increase
boosted net assets to a new
high
March 31, 1952,
com¬
of the top years in the
pany's history.
In terms of
event.
The danger, it seems
is that, with equity funds
reduced
in
supply,
corporate
enterprises will be forced more
any
sug¬
that of last
by Wel¬
first
is
any
1933 to 1947, in¬
equal to 38% of the
is gaining
pany
rate
the
total
the
from
year
total
to
shareholders.
of
than
clusive.
added
one
the
also presented in this
transcrip valuable information
2,736 persons and insti¬
Group
Orientation
draw
to
bonds, 13.4%; preferred
during the quarter were in insur¬
the human element.
corporations for new plant, equip¬
The reasons
stocks, 11.6%, and net cash and ment and
working capital.
But
why so many prospects don't un¬ ance, metals and mining, retail
trade and steel issues.
Cash and receivables, 3.3%.
the high tax level combined with
derstand what we are
saying, or
equivalent was equal to 3.3% of
unusual
cost
of
who
do not
production
is
buy, are naturally
NEW SHAREHOLDERS of Fun¬
assets at March 31, 1952.
complex.
Some suggestions are
damental Investors set a record in gradually reducing this source of
Investments newly added dur¬
made for keeping attention while
equity — a source which is not
the first quarter of 1952.
During
available
to
new
in the interview, through the use ing the quarter included shares of
enterprises in
that time
of demonstrations.
Louisville,
Association
the
stocks
common
Co.,
elected
keep our free enterprise
system healthy and growing, it is
II
Thomas Graham, Bankers Bond
inequitably taxed that the gamble
To
L
of JCOC
can
$7,470,938, equal to
$26.77 per share, compared with upon a continuous supply of fresh
venture capital.
Retained earn¬
$6,833,316, or $25.90 per share on
ings will not last forever.
Since
Dec. 31, 1951.
9
A
T||0lltaS 1^3113111 PteS.
is not worth the candle.
TOTAL NET assets of Sharehold¬
Investments
T,
take the risks that
$13.85.
A year earlier ments
were
193,619 shares out¬ returns
there
for
means
that purpose
was
amounted
31, 1952.
During the quarter, the propor¬
tion of assets invested in the fol¬
lowing industries
because
Wilson, Johnson Adds
CSJjecial to The Financial Chronicle)
SAN, FRANCISCO, Calif.—Carl
F. Cunningham is with Wilson,
sugges¬
Johqson
existing
gomery
&
Higgins,^ 300
Street, i
Mont¬
Number 5110
[Volume 175
Continued jrom page
.
The Commercial and Financial Chronicle
.
.
equitable basis for seizure
7
the
be
bers
with
must
rejection of recommenda¬
tions formulated by
Wage Stabilization and
Emergency Disputes
through
public
truly
a
mem¬
quasi-ju¬
dicial process.
is
But
not
evitable
istic
bargaining
inherent
and
of
accept
cents
of 15
holidays
pay
without
hour
an
with
in
increase
an
at the time that the
automobile workers, rubber work¬
pay
and electrical workers
ers,
were
increase of only 11.5
cents plus the addition of six paid
holidays. Now holidays with pay
getting
an
workers
the
for
recommended
are
the ground
on
steel
that they
have become "a
in
order
to
people believe that it is.
the
to
Board
virtually no
concessions
that
recommend
may
not violate its rules for
In the steel
wages.
that the
seen
rules of the Board set
limit
industrial
preserve
And we have
peace.
because
cerned
with
it
still
and
stabilizing
the Board
case
proposed record-breaking
sions
the
was
conces¬
more
preventing
con¬
inter¬
an
prevalent practice
ruption to defense production than
The extra
with protecting the country
allowance
of
25%
for
Sunday
against inflation. Perhaps the pre¬
work as such seems to violate the
in American industry."
Board's
rule that fringe con¬
own
cessions shall not set
patterns.
new
Penalty rates for Sunday work as
such
industries
in
common
are
where processes are
not continu¬
but they are far from com¬
in continuous process indus¬
tries or in industries where Sun¬
ous,
day work is unavoidable.
The essential difficulty with the
of
the
Board,
however, is not with its decisions
on
particular points. Rather the
trouble
is
with
decisions.
the
these
of
sum
much
how
matter
No
the individual concessions granted
the steel workers fell within area
or
patterns, the total
of record-breaking
industry
package1
size.
was
it
And
who
standing
as
rules.
vio¬
Certainly it
spirit of
that the London "Economist"
at
which
it
describes
favorable
the
to
re¬
"jubi¬
as
recommendations"
the
"far
as
more
than
union
had
expected."2
issue
is not the merit
of the decision but the process by
which it
was
made.
I do not agree
with Senator George that the pub¬
lic
biased.
and
the
of
members
Their
Board
reputations
as
are
fair
experienced arbitrators, as I
have
pointed out,
are
well-estab¬
How could such good men
lished.
produce such a bad decision? The
explanation is found partly in the
fact that the
Board
has been
as¬
signed functions that do not mix
and
been
decided.
Cer¬
partly in the fact that it was
The
Mixture
functions that the Board has been
assigned
the administra¬
stabilization policy,
(2) the prevention of strikes
tion of
and
a
wage
lockouts
or
(1)
are
that would
vital production.
interrupt
The responsibil¬
ity for this state of affairs is not
the
Board's
but
the
President's
because the incompatible functions
are
imposed
on
the Board by the
executive mrder creating it.
In
steel
critical
cases,
such
as
the
case,
the Board is primarily
concerned
with preventing inter¬
ruptions to production rather than
2 The
March
29,
796.
1952
,
A
put
mes¬
strike, to defend the wage stabilization program by seizing the
industry, or to capitulate and to
which
permit them to make large
concessions
industrial
tending
policies
cision
me
that
who
acceptable
seems
views
the
labor point of view
in
immediately
case."
the
the
And
industry representatives should be
able
to
the
make
kind
same
of
declaration to the public.
If breadth and independence of
the
be obtained among
industry and labor represen¬
can
tripartite
good
unanimous
should
boards
in
success
decisions
that
to
preserve
still prestabilization
while
wage
not being violated.
are
reaching
in
cases, as
a
large
experience
Canadian
Industrial
steel
The
the
nates
illumidifferstabilization
sharply
case
wage
and
price stabilization
In this case the em-
ployees are being given increases
that substantially exceed the rise
In the consumer
Dec.
1, 1950,
the
of
view at the present
is
tion
that
Industrial
Government
have
some
that is primarily concerned
agency
with stabilizing wages and that is
prepared
to
champion
cies
are
cause
other
of stabilization when
the
agen¬
to
prepared
sacrifice
it
for other purposes. The
bilization
Board
in
agency
charged
the
with
(2)
Use
The
of
wage
Inappropriate
Board
the
to
of
else will.
in
the
methods that
propriate
if it does
cause
one
no
The
used
responsibility
wages, and
champion the
case
government
the
stabilizing
Methods:
Wage Sta¬
the principal
is
steel
inap¬
are
function
of
in¬
terpreting and applying the rules
of wage stabilization. The public
thinks
of
the
Board
as
quasi-
a
judicial body, making the kind of
decisions that
tion makes.
this
cases
board of arbitra¬
a
In the less important
true.
In the steel
were
lowest
the
part
of this inbriefly the
attempting to find the
that
to
would
forego
induce
strike.
a
In
the words of the London "Econo¬
mist"
"apparently the public
resentatives
.
.
rep¬
made concessions
.
to the labor point of view because
they found themselves quite un¬
able to compromise with the in¬
dustrial representatives.
.
rather
recommendations
Inci¬
than
a
decision
The
in
a
present incompatible mix¬
bilization
rected
should
Board
limiting
by
the
be
cor¬
responsi¬
the
But
tolerable
in
sooner
bound
to
free
a
later
or
hold
are
society,
the
in¬
and
courts
are
that
fixing the
legal obligations of employers by
bargaining between administra¬
officials
tive
sentatives
and
does
quirement of due
and
does
tutional
not
basis
union
not
meet
process
provide
for
a
repre¬
the
re¬
of law
consti¬
restrictions
on
the
use of private property.
Cer¬
tainly rejection by the employer
of
bargains
made
between
the
public ahd the union representa¬
tives
is
not
a
sound
basis
for
p.
by
the
government.
The
only
Stabilization
of
and
protecting
business
em-
concerns
against serious hardship, of giving
both employees and business concerns
incentive
an
in
creases
costs
efficiency,
to
and
and
of
„
,
,,
^a(*
fight
to
in-
improve
treating
principal economic
stantially alike
.
the
sub-
groups
•
.
Jhe
P
rec0FJ~
^
y f C.E.D. been guidin^f. e Present wage-price stabili2atlon program, there would have
been an excellent chance that the
dispute would have been
settled
u
collective
bargaining.
they C(>uld Pass on a considerable
Part of a wage increase in the
form of higher prices, would have
been in a position to make an offer f° the union—something they
could not well do when the size
°| Price increases that might be
allowed was uncertain. Unless the
present system of price-wage controls is reformed along lines
ndce'noTctt^ *
wage
Jteno
T
«
applying the estab¬
stabilization policies.
and
lished wage
This
would
not
mean
receive
would
that
no
the
dispute
such
stretch
as
the
interpretation
of
its
stabilization rules for the purpose
rule of the Price
(subject
Agency
to
of
85%
than
less
are
before
industry
an
the
the three best years
the four-year period 1946-1949.
If
preting
and
of
of
average
in
Stabilization
Board
taxes
inter¬
nomic
I
as
exceptions) is that hardship
not
be
found
unless
the
some
profits
governed by the
same
rules as prices employees
would be protected against rises
wages
in the
up
were
consumer
to July
price index only
1951, but not be-
15,
yond and would be given no relief until the purchasing power of
their
hourly
straight-time
earn-
had fallen to 85% of the
average of the three best years in
ings
the
period 1946-1949.
present wage-price policies.
industrial
preserving
bor
and
would
Industry
be
peace.
representatives
greatly reduced, if not
The
eliminated.
would be
Board
judicial
body,
not
a
bargaining
one.
But
the
limiting
the
functions
of
Stabilization Board to
recommending and applying wage
stabilization policies would create
the necessity for setting up other
Wage
handling the
or employ¬
ers refused
to accept the Board's
decisions.
Suppose, for example,
that the Board found in a given
case that sound stabilization pol¬
arrangements
for
in which unions
cases
permitted wage and fringe
costing 10 cents an
icies
concessions
hour
and
the
union
insisted
cents.
the
Some
Wage
on
switchmen who have settled the
lssufs+ which threatened to pre-
^pija^ ar> S!irl.
°f 1950. But
+1*1
conductors, and fire-
en6ineers,
created an atmosphere favorable
t0 negotiation.
If the country must expect to
be confronted from time to time
with prospective
strikes
that
threaten disaster, a well-considered procedure for dealing
with these emergencies should be
developed. The Taft-Hartley Act
falls far short of providing thecountry with good arrangements
for dealing with emergency disputes. The Act provides that
tbat
national
President
health
appoint
may
to
the
report
positions
the
on
of
the
Board finds that
a
produce
President
quired to authorize the most esthe
W(ould
amendment
Capehart
the
District
stoppage
of
percentage
mark-ups for
dis-
tribution cannot be defended. The
parties.
basic principles of a
ticable program
control
were
issued by the Research
statement
and
fair and prac-
of wage and price
in a policy
set forth
Committee
Policy
of
sence
that
of
the
both
1951. The esproposals is
C.E.D.
employees
and
0f
60
em-
ployers be protected against rises
in direct costs but that the pro-
given 15 tection be moderately less than
agency, other than complete. In other words neither
Stabilization Board, prices or wages as a general rule
the
an
or
health
enjoin
injunction
or
en¬
lockout. If
finds
that
a
would
or
it.
imperil
safety, the
If
the
dis¬
still unsettled at the end
days, the Board of Inquiry
rep0rts to the President the position of the parties and the efforts
that have
the dispute.
Committee for Economic Development in December,
may
pute is
If
^
stoppage would
Court
does
national
COurt
he
Inquiry
£md
national emergency, the
may ask the Attorney
General to seek
be desirable and the maintenance
of
factg
joining the strike
sential reforms—though repeal of
a
welfare,
or
Board
a
should be reFortunately
legislation by Congress is not reprogram
believes
dispute might threaten the
a
formed without delay.
present
summer
in the case of the
mejP n.° settlement has occurred
and seizure does not seem to have
whenever
i.
A wage-price
stabilization program cannot command the respect
And since the Board would not
and support of the public for long
be
responsible
for
preventing
unless it applies substantially the
strikes, the temptation of the pub¬
same principles to the regulation
lic members to bargain with la¬
of both
wages
and prices. The
of
striking unless it were
employer's property
control
of
feature
policy,
but the general
will
implies—namely, the rec¬
ommending of wage stabilization
policies to the Director of Eco¬
strong and tough and the able to become what a wage sta¬
industry is vital to defense. Such bilization body should be, a quasimethods of administration
stabiliza-
price
apply for relief in hardship cases,
its title
the recent steel
bargaining is not an appro¬ case, because there would be dis¬
priate way to interpret and apply
putes over the application of the
stabilization
rules.
Undoubtedly stabilization rules. It would, how¬
the interpretation and application
ever, mean that the Board would
of stabilization rules require the
be relieved of the temptation to
discretion.
stabilization
bilities of the Board to those that
cases,
of
and
essential
The
prices,
upon
there is
case,
ture of functions in the Wage Sta¬
But
exercise
policies
*
ing the effect of increases in costs'*
have
pointed out, is that employees are
VI
no
calamity
in three
separate
given rather complete protection
What
should
the
opinions—from the public mem¬
country do
against rises
in the
consumer
bers, the labor members, and the
price index. In addition, wages about
strikes
prospective
industry members. In cases where
may be raised for a
variety of str*es.thatu would imperil the
both the labor members and the
reasons. No comparable protection
Public health or safety or threaten
industry members say that the is
permitted to most employers, economic disaster. The standard
public members are wrong, one Under the
Capehart amendment Procedure has been for the govcan be pretty certain that the pub¬
they are permitted to pass on in- ernment to seize the industry. But
lic members are right or nearly
creases in cost up to July 15, 1951.
seizure in itself settles nothing. It
right—just as they are probably
The
law
allows offsets for in- bas been fairly effective in proright when both sides think they creases in indirect as well as tecting the country against in¬
are
right. But when one side
direct costs—a provision that is irruptions of production, and it
thinks that the public members
unsound. But
advances in costs
Jbe two sides an opporare right and the other side thinks
after July 15, 1951 may not be tumty to negotiate at their leisure
that they are wrong, one is com¬
passed on. Distributors, however, jFee tr°m the pressure of deadpelled to rbe uncertain about the
are
guaranteed their customary bnes. Sometimes this is useful,
fairness of the decision.
percentage margins — an unduly anc* settlements result
as in the
liberal allowance. Employers may cas.<r
of the trainmen and the
IV
final
."
.
indicates.
Court
of wage
broad features
dentally, where the Board makes
is
terms
union
the
pro-
posals have the merit of permitting flexibility of prices, of limit-
similar to those recommended by
policies
the
under
C.E.D.
the Committee for Economic Development, these controls should
be allowed to lapse. It would be
better for the country to run the
rislc °f some inflation than to im¬
Pose controls as discriminatory
contrast
us
promptly
as
should
corporations
large
a
Let
crease.
or
quite
prices. The
these
as
stockholders
the
that
steel
absorb
price index since
Jan. 15, 1951. The
or
government
moment
direct costs
by
discriminatory
between
ences
policies
policies.
permitted to rise quite
as
prices determining
much
as
The steel companies, knowing that
V
but not from
employees
of
involved
order
to
the point of view of the particular
group
in
peace
from the
case
would be
rPur an«—1Si 1Swould Payees
as
Public officials
a
Disputes Act and with the British
seizure of the
Economist,
mere
union is
of Incompat¬
ible Functions: The incompatible
(1)
,,
have to decide whether to accept
tainly the development of proper
balance in public policies requires
using methods that are inappro¬ kind of discretion called for is
priate for the administration of judicial discretion—discretion that
a wage stabilization policy.
These is free to decide
any point either
points are important because they way. Interpretation of
wage sta¬
indicate the need of basic reforms
bilization policies by bargaining
if the country is to continue its means that the
policies will mean
efforts to impose direct controls
one thing when the union is small,
on wages and prices.
Let us look weak, and non-militant. and a
at the two underlying defects in
very
different thing when the
the Board's operations:
aii°K
one
course, insist on
,
should be.
to say to the public: "This is a de¬
proportion of
have
would, of
government would be
I do not
The labor representa¬
have
or
however, the Board was a
bargaining body. The public mem¬
1 have said that the main
case
should
If
get 15 cents, other
Sn?an!e'
The
the Board should be able
on
tatives,
wages
bers
steel
decision
case,
Ill
in the
the
tives
prices. Further¬
more, the decision should be made
only after the wage stabilization
not
ported the steel workers
been
done,
interrup-
production.
to
were
unions
Many
boys for interests outside
senger
the Board.
izing
in
stabilization. Small wonder
lant
is
members should not be
viewpoint
workers
lates both the reality and
wage
pro¬
tion of defense
be
by a person or agency
who is not responsible for stabil¬
for
indication of the inadequacy
those
to
made
of
the letter of the Board's rules, that
of
be
If stabilizing,
package does not violate
a
an
interruptions
working conditions.
wages and
is
that
forefront
the
in
industrial
American
such
granted to men
was
described by their union
are
of
order to prevent
in
permit departures torn wage staobtained, then there is bilization policies. Officials would
no
point
in
having
tripartite be deprived of the convenient amboards.
The labor and industry biguity
of
present
procedures
cannot
issues
mon
recommendations
vention
duction should be placed ahead of
the prevention of inflation, but if
pol-
lcies
character¬
bodies?
tripartite
in¬
an
deciding
the concessions it will recommend
would have to decide whether to
sacrifice sound stabilization
union
disputes over the agree. The best operation of tri¬
usual date from which to com¬ interpretation and application of partite bodies, it is true, requires
The a certain breadth of view and in¬
pute the cost-of-living allowance. wage stabilization policies.
more strongly the Board feels the
dependence on the part of repre¬
The allowance of holidays with
necessity of preventing interrup¬ sentatives of labor and industry.
pay is open to question because
tions to production, the larger are If this breadth and
independence
the steel workers in 1947 chose to
dropping Jan. 15, 1951 as the
is,
53
(1745)
rep0rt,
been made to settle ^
Within 15 days after this
the National Labor, Rela-
tions Board
eacb
is
directed to .take
a
ballot of the employees of
secret
employer on the question of
the final offer of the
accepting
employer. Within five days after
the vote> the National Labor Rela^
„
M
Continued on page 54
54
The Commercial and Financial Chronicle
(1746)
But underneath the obvious
there
Tomorrow's
not
coming I prefer to get out and
let the other guy do the hold¬
By WALTER WHYTE
week's
column
had
ing
on.
scarcely been set
printers when a
knocked
There
it
off
by the
hurricane
up
its
pinnings.
all sorts of "rea¬
were
sons" around to explain it.
If
phoned your broker you
probably heard a couple of
you
earfuls about what that.
most
The
widely
accepted "rea¬
upsetting of the
applecart by Harry S. Truman
son"
the
was
the takeover of
in
steel
the
companies.
#
*
*
#
*
*
let the parties imperil the national
health or the national safety or
from page 53
like the recommendations of
vn
More important than the specific
must certify the re¬
Board
neu*
trais.
parties to continue the production
General who of essential services in sufficient
then obtains a discharge of the quantities to safeguard the public
health or safety.
The effect of
injunction.
This procedure is not well cal¬ these arrangements would be to
culated to settle difficult disputes. permit an
incomplete strike or
tions
on it a great economic dis¬
simply because they do not
aster
Wage Stabilization and
Emergency Disputes
down to about 250
Averages and still
keep its nose clean. When I
think I see a 10-point reaction
Thursday, April 24, 1952
.
inflict
in the Dow
Whyte
Says—
Last
things that are
On purely
grounds the market
react
can
Continued
obvious.
so
technical
Markets
Walter
other
are
.
.
sults to the Attorney
arrangements for handling emer¬
disputes
gency
which
the
worked
out
and
which
under
is
the
in
way
arrangements
are
<
the sponsorship *
they
launched.
work "
are
How well any arrangements
will depend upon how unions and
In the first place, it quite unneces¬ lockout—one that would enable
employers regard them. ■* Trade
sarily arouses the feelings of em¬ the parties to carry on an eco¬ unions haVe been well established
things that cast a cloud on the ployees by causing an injunction nomic fight without inflicting in¬
in the American community now
immediate
future.
For the to be issued against them. "In¬ tolerable injury upon the com¬
for at least 15 years. In some in¬
junction" is a word charged With munity. The second is authority
past few days, while the rally
dustries, such as railroads, the
much emotion.
The essential re¬ to seize the property and to oper¬
was going on, many stocks de¬
building trades, the printing insult, namely the maintenance of ate it for the account of the
veloped volume on the up¬ the status-quo for 60 or 80 days, owners. In the event of seizure, dustry, and others strong, unions
have existed for more than a genside. But instead of following could be easily achieved without the Government should be pro¬
eration. Unions are pretty used to
hibited from changing the terms
up their early strength, they the use of injunctions by impos¬
of employment without the con¬ dealing with employers, and em¬
faded and in no time quota¬ ing on both sides the obligation
ployers are pretty tised to dealing
to make no changes in wages or sent of the parties. The obligation
tions were under the levels at
with unions.
working conditions for a limited should be imposed on the Govern¬
which most of the activity
Is there not enough able and
period—as is done by the Railway ment to observe the laws regulat¬
occurred. Such action is usu¬ Labor Act. The vote of employees ing safety and plant conditions experienced leadership among
on the employer's last offer at the
that apply to private employers. unions and employers to work out
ally indicative of major dis¬
end of 60 days is bound to result The third is authority to hold a an agreement that provides ar¬
tribution.
Incidentally, dis¬ in a
acceptable to both
rejection—as it has whenever show-cause hearing at which the rangements
tribution occurs on the upside, a
vote has been held. Worse than parties would be given an oppor¬ •sides for handling emergency dis¬
not on the downside.
this, the vote is bound to impede tunity to show why the recom¬ putes? Congress would undouht-
Here
are
few other little
a
'
;
*
'
"•
J
*
,
-
Frankly I doubt if the bat¬
tle
the
between
steel
com¬
panies and'the Administration
had anything to do with the
break.
of
all
When
this
is
: ';'v
;■
■?'jjc
iso¬
is
lated, or limited to a handful
will fare better than is gener¬ of stocks, it is usually suspi¬
cious. When it spreads to the
ally believed at the present
done with and finished I think
The
reasons
immediately dangerous. I sup¬
*
*
*
elsewhere.
are
Signs of an impending break
appeared many weeks ago
when
column
this
gave
due
warning. That reaction came
and a rally followed.
Last
week I suggested buying
again,
saying the
market
"doesn't give any serious signs
of any new or impending re¬
action. The signs in fact point
the other way."
*
The
*
*
break
followed
that
right after these words ap¬
peared in print gave you a
chance to get in, if you were
so minded.
The question now
before
us
is what to do about
them from here
Jj:
•
on
sji
in.
can guess at a couple
of reasons to explain all this,
but
get them from other
Maybe it's because
our economy is such that we
can't pay any more taxes and
our armament program is so
heavy we can't economize.
Take your choice.
you can
sources.
expressed in this
necessarily at any
time coincide with those of the
Chronicle. They are presented as
those of the author only.]
[The
article
views
do
not
With R. J. Plunkett
(Special to
is
mond
now
associated with Ray¬
Plunkett
J.
American
State
of
and
&
Bank
Go., First
Building,
Midwest
the
Stock
formerly Waumanager for Dayton & Gerwas
non.
this
at
writing
wea¬
ready
to go up again. At least
is the obvious indication.
that
With George K. Baum Co.
(Special to The Financial Chronicle)
KANSAS
CITY,
got
vote
the
and
Furthermore, the strikes
rejection will
be
permitted, of course,
the case by mutual con¬
without
case
the
consent
of
the
other at the end -Of the period of
six months. This would make pos¬
sible
trial of the recommenda¬
a
tions for
start
a
brief period and
settling the
on
months
or
case
a fresh
after six
before.•
,
The
proposed
arrangements
the President has would give the Government a rea¬
not using them. sonable variety of
options to em¬
Nevertheless, the public, who are ploy in handling the dispute. It
be
used,
in
not
familiar
with
the
Act
who
do
details
the
how
*
and
wise
been
and
bad
are
its
not
of
realize
provisions
for
handling difficult disputes, nat¬
urally ask why the Act is not
Confusion would be avoided
would be prepared
for the development of construc¬
tive arrangements to handle emer¬
might decide to do nothing—to let
the parties fight it out even at the
risk of a great emergency.
Or it
might let the parties fight it out
while
arranging for a limited
amount of production. Or it might
seize the property and hold it
while
the
parties attempted to
come to terms during seizure. Fi¬
nally, it might insist upon a try-
gency disputes if the emergency
dispute section of the Taft-Hartley out of the recommendations of the
Act were repealed.
Emergency Board.
What
arrangements
available
made
to
should
the
be
The
recommendations
of
the
Govern¬
Emergency Board might not be
ment for handling emergency dis¬
particularly satisfactory to either
putes?
One of the instruments party. It is
important, however,
should certainly be seizure.
But to bear in mind the nature of a
if seizure is used, proper author¬
dispute that exists after an Emer¬
ity for it should be provided and
associated
its use should be surrounded with
safeguards.
Seizure that is not
proper authority nat¬
Company.
emotion, and creates an atmo¬ divided the parties.
sphere which makes the dispute
considerably less., importance. It
harder to settle. Arrangements for
has been reduced to the difference
OPTIONS
SPECIAL
Joins Baxter,
Per 100 Shares Plus Tax
Pec. West. Oil @25
June 23 $137.50
St. Peul
com..@21V2 July 11 137.50
Corp. .@27% June 16 137.50
Interntl.Petrol.@39y2July 7 137.50
Baltimore & 0.@20% June 23 137.50
Radio
.
Phillips Petrol.@56% June
Canad. Pacific @40
July
2
7
137.50
137.50
Lion Oil.,... .@44
2
137.50
137.50
137.50
112.50
137.50
137.50
Celanese
June
@42% June 9
Sunray Oil
.@23 July 7
Anchorhocking@30% Sep. 15
Mon«. Chem..@102% Aug. 11
....
..
Elliott Co...
.
.@26% Aug. 11
Bond Stores ..@15%Aug. 22
Glenn Martin.@10% 5 mos.
6 mos.
100.00
137.50
137.50
Fedders-Quig..@16V2 0 mos.
Pepsi-Cola ...@12 11 Mos.
137.50
137.50
Bald.-L.*Ham.. @10%
Subject to prior sale or price change
Explanatory pamphlet on request
We
also make
quotations Tor 30
days,
60 flays, 90 days and 6 month options.
Chronicle)
Members Put 9r Call Brkrs. &Dlrs. Assn., Inc.
Tel. BO 9-8470
.
that '
s
have
recommendations.
no
longer
the
rejected these
The dispute is
original
that
It is one of
emergencies
are
.
from time to time.
the right to expect '
experienced labor leaders and
that
industrial
experienced
executives
relations *
and
propose
sponsor
adequate arrangements for deal- :
irig .with these disputes.
'
.
The
that
administration
new
/
takes office next winter, whether
Democratic
the
ask
or
Republican, should
leaders of
labor and
>
in-
.
dustry to recommend well-thought
out
for
arrangements
emergency
ministration
fied
handling
disputes. The
should not
be
satis¬
proposals which
with
t
ad¬
new
meet
only part of the problem or which
,
dodge difficulties. It should insist
on
arrangements that provide for
contingencies and that adequately protect the public intercomplacently ac¬
all
*
-
est. It should not
cept the abortive kind
of indus¬
trial relations conferences that the
country had in 1920 or 1946. The
time has
come
for the
leaders
of
labor and
industry to assume the
responsibility for proposing real
restrictions
of
on
their
own
freedom
action. Our much-vaunted ca-
pacity
seem
>
in practical affairs will
quite hollow if the leaders
of labor and
vide
industry cannot pro¬
public with effective
the
threaten
against
the
disputes
national
nomic disaster to
and
cause
that would
or
that
health
eco¬
the country.
one
With W. E. Hutton & Co.
(Special to "The Financial Chronicle)
CINCINNATI;
.
Ohio—James H.
Stone has become connected with
W. E. Hutton & Co., First Nation¬
al Bank
Building. He was former-'
ly with Lehman Brothers of New
York.
,/
■
:
•/';
.
,
.;
Foster Bros., Weber Add! ;
.
(Special
to
The
Financial
Chronicle)
TOLEDOj Ohio—RolloG.Smith,
has been added to the staff of Fos¬
ter Bros., Weber & Co., 410 Madi-,
son Avenue, members of the New
Alton of the dispute—in other words, a
One ma^drghe^ that in a free
York.and Midwest Stock Ex-Gumbiner is with White & Com¬ Board,essentially the same as the
society npither^ side " should be
changes.
pany of St. Louis, members of the Emergency Boards created under compelled ""^^ accept^the
terms"
the Railway Labor Act.
Midwest Stock Exchange. He was
recommenced,. by neutrals, how¬
Joins
Staff
;
(3)
Authority for
additional ever wise and reasonable those
formerly with McDonald, Evans &
(Special to The Financial Chronicle)
be."
steps to be taken if one side or neutrals
Buys either side
Co.
ST. LOUIS, Mo.-HueyG. Huhn
both sides reject the recommen¬ entitled to precipitate a national
has become associated with
dations of the Emergency Board.
Slayemergencyg&ecauseit'does not like
tOn & Co., Inc.j 408 Olive Street.
Taussig, Day Adds
Experience indicates that rejec¬ the terms that neutrals recom¬
KANSAS
CITY,
Mo.
to recommend terms of settlement
able.
"
—
Slayton
•
(Special to The Financial Chronicle)
LOUIS,
Wolken
THOMAS, HAAB & B0TTS
parties
handling emergency disputes between the recommendations of
(Special to The financial chronicle)
should include the following:
the Emergency Board and the con¬
COLUMBUS, Ohio—Russell C.
(1) A stand-still period long ditions that the employer or the
James has become associated with
enough to permit adequate in¬ employees would prefer to have
Baxter, Williams & Co. of Cleve¬
vestigation of the dispute. "This —differences much less than the
land. He was formerly with West- should
probably be 60 days, with original ones between the em¬
heimer & Co., Merrill, Turben & provision for extension if neces¬ ployer and the employees. Parties
sary.
rejecting the Emergency Board'sCo. and the Ohio Company.
(2) Authority for the President recommendations are simply -un¬
to appoint an Emergency Board of willing to accept the terms that
With White & Company
public members to investigate and impartial men-regard as reason-'
(Special to The Financial
ST.
fO Broadway, Now Vort 4
Williams
Dispute
occur
safety
urally
up
bound to
the
based upon
stirs
together.
protection
merly with the Commerce Trust
alarm,
'
Labor Act in 1926 after the
railroads and the railroad unions
gency Board has made recommen¬
dations and after one or both of
with George K. Baum & Co., 1016
Baltimore Avenue.
He was for¬
arouses
an
The public has
limited
a
sent at any time and either party
it na¬ should be permitted to reopen the
the belief among
the men that, having voted down
the employer's offer in a govern¬
ment-conducted
vote,
they are
now
quite within their rights in
striking.
Of course, the provisions of the
Taft-Hartley Act do not have to
such
way
threaten national
for
to reopen
arouses
of
terms
agreement—as it passed the Rail-
should
rigid and uncompromising.
Finally, the vacating of the in¬
junction
makes
the
stoppage
more
turally
essential
the
period of
time—say six months. The parties
to make the attitudes of the men
harder to prevent because
the
of
lockouts should be pro¬
or
hibited
tend
Mo.—Donald
L. Roberts has become
mendations
the dispute/ The
and the ground
WAUSAU, Wis.—John G. Gar¬
land
"last" offer low.
of
*
into law ;
edly be called to enact
settlement
used.
Chronicle)
Financial
The
Exchange. He
seems to have
thered the storm and is
and
excuses
are
reasons
members
:j!
Right after the break the
rallied
I
pose
sau
market
it/ becomes
market
general
time.
Emergency
employer,
anticipating that the Board should not be put into ef¬
vote will be unfavorable and that fect. If the Government, after the
he will eventually have to raise show-cause hearing, decides to: put
his offer, will naturally keep his the recommendations into effect,
a
'J.":y
action
such
When
tf,
< x
*
Taussig,
is
Mo.
now
Day
&
—
tion
Louis
associated
Company,
R.
with
Inc.,
is likely
siderable
to occur in a con¬ mend? Thfejs the-form that the
proportion of cases. The dispute takes after the Emergency
x^mmendations
have
given three Board's
Government should be
additional powers for dealing with
this situation. One is authority for
509 Olive Street, members of the
the
Midwest Stock Exchange.
rangements
President
to
with
enter
into
either
or
ar¬
both
been made.
munity
not be
Slayton Adds
(Special to
The
to Staff
Financial. Chronicle)
The rights nf the com¬
are no
those of
:
DAYTON, Ohio — Howard 1EL
less important than Payne, Jr., has been added to the
therpafties, and. it should
staff of
compeliethto-'stand by and 1126
Slayton & Company, Inc.,'
Oakwood Avenue.
Volume
Number 5110
175
.
.
The Commercial and Financial Chronicle
.
The following statistical
Indications of Current
Business Activity
AMERICAN IRON
Indicated
operations
latest week
week
Apr. 27
Week
on
Steel
ingots
Crude
Crude
condensate
Apr. 27
to
runs
output—daily
2,085,000
Kerosene
output
fuel
Residual
oil
fuel
6,366,300
6,376,750
6,404,400
6,120,200
.—Apr.,12
U6,315,000
6,557,000
6,693,000
6,127,000
Apr. 12
21,542,000
21,410,000
19,371,000
2,720,000
2,598,000
21,756,000
2,472,000
—
output
oil
(bbls.)
output
Residual
fuel
oil
(bbls.)
Apr. 12
___„
9,412,000
9,434,000
10,219,000
8,492,000
8,746,000
8,865,000
8,981,000
8,834,000
at
AMERICAN
OF
ENGINEERING
U.
S.
Private
Public
construction
State
48,494,000
*48,827,000
Dollar
37,691,000
Based
35,880,000
36,565,000
—
707,142
708,826
658,406
671,713
691,086
Apr. 17
$235,105,000
$228,502,000
$250,763,000
$220,797, 000
120,896,000
87,549,000
157,204,000
98,768, 000
140,953,000
93,559,000
122,029, 000
81,360,000
71,801,000
69,376, 000
21,758,000
000
—Apr. 17
114,209,000
_—_Apr. 17
93,441,000
———Apr. 17
STORE
20,768,000
59,593,000
_
SYSTEM—1935-39
ELECTRIC
Electric
output
INDEX—FEDERAL
SALES
AVERAGE
100
=
(in
.
52,653,
AND
AGE
steel
Pig iron (per
steel
Scrap
METAL
(per
;
Domestic
Straits
refinery at
refinery at—.___
tin
York)
(New
Lead
(New
Lead
(St.
York)
at
MOODY'S
U. s.
BOND
South
DAILY
58,966,245
74,073, 694
22,555,473
24,386, 887
10,132,597
10,372,331
14,580, 381
60,000
*109,000
139,000
132, 800
Pacific
53,820,598
55,437,055
62,875, ,122
320
*314
260
288
$351,381,281
$313,154,679
$431,630, 560
31,535,059
33,765,418
49,584, ,940
319,846,222
279,389,261
382,045, ,620
7,063
8,357
6,590
41,100,000
43,770,000
44,839,000
2,952,000
3,162,000
2,183,000
605,200
596,800
641,300
§7,120,000
*7,154,289
7,353,977
151
188
184
181
4.131c
$52.72
4.131c
4.131c
4.131c
$52.72
$52.72
$52.69
$42.00
$42.00
$42.00
$43.00
<
:>
24.200c
24.200c
24.200c
Apr, 16
27.425c
27.425c
27.425c
24.425c
—Apr. 16
___.
121.500c
121.500c
121.500c
147.000c
Apr. 16
19.000C
19.000c
19.000c
17.000c
18.800c
18.800c
18.800c
16.800c
—————Apr, 16
19.500c
19.500c
19.500c
17.50UC
98.28
98.05
97.68
Apr. 22
Utilities
Group
Industrials Group
MOODY'S
U. S.
BOND
Government
Average
COAL
114.46
114.46
113.70
115.63
113.12
112.93
112.56
109.60
108.88
110.70
104.14
104.31
103.97
107.44
107.27
106.56
109.60
109.24
111.25
113.70
113.50
113.31
COPPER
2.63
3.16
2.72
2.65
3.16
2.62
22
3.19
2.97
2.93
2.93
2.87
3.01
3.03
2.95
3.21
3.23
Baa~ZZZZZZZZZZZZZZZZZZZZZZZZIZZZZZZIZ-ZZZZZZZZZZZIZZZ_Apr.
22
3.50
3.49
3.51
3.38
Railroad
—Apr.
22
3.31
3.32
3.36
3.26
Group_'_'_—Apr.
_1_
.I—
———Apr.
22
•___.
INDEX—
NATIONAL PAPERBOARD
Orders
received
Production
Unfilled
OIL,
—
2.99
432,1
516.3
198,938
at
end
of
12
81
111—Apr.
period—
REPORTER
IOO
12
423,844
18
140.8
/
201,244
DEALERS
SPECIALISTS
AND
ON
Y.
N.
S.
of
A.
(net tons)
tons)
(net
!
in U. S.
2,000
(tons
March:
A.—
pounds)
of
86,841
85
83
199,937
248,406
102
409,339
726,783
140.6
447,663
140.7
Odd-lot
sales
dealers
by
Number
of
end
of
COTTON
AND
MERCE
LINTERS
DEPT.
—
RUNNING
—
OF
Odd-lot
purchases
of
Number
dealers
by
(customers'
orders—Customers'
month of February
consuming establishments as of
In
In
public
storage
Linters—Consumed
In
Mar.
of
as
month
of
Cotton
spindles
active
total
834,611
863,650
896,196
$41,508,247
$39,338,464
$41,129,188
$38,575,902
4,453,419
119,952
3
24,766
27,614
—Apr.
sales——
Kilowatt-hour
sales
to
Month of January
from
Revenue
ultimate
^
shares—Total
January
—
of
Number
29,217,183
PUBLICATIONS
OF
APRIL
Composite
Piece
1935-89=100
—
RETAIL
_
__
46,890,115
—
Women's apparel
___
r
97.7
97.8
106.4
Dollar
value
Round-lot
,linr
of
Short
,
r.-r.
wi jj
inn
,
Number
TOTAL
silks
and
sales
90.7
690,205
713,919
4,593
6,279
27,004
683,926
713,919
$33,126,961
$31,192,645
$29,198,097
$29,017,008
216,990
181,280
179,850
198,160
2_16Z990
Apr,
179^850
181,280
l~9~8Zl60
STOCK
AND
SALES
ROUND-LOT
ON
Total
370,870
95.8
100.5
98.8
100.1
107.9
108.0
97.3
98.1
100.6
—
—
100.9
102.2
109.2
108.7
j.
Men's apparel—
■
/
—__r.
Underwear
Hats
„
,J
neckwear—
:.
-'.,i
i
-i
j..
r
'
i,
r'-i
j
M
'
i
106.6
106.6
»
caps
110.7
111.1
102.4
'
and
and
105.U >
,
102.4
'
,110.0 <;■
,
•
102.3
100.2
100.3
100.4
104.8
105.1
103.5
109.0
109.3
111.4
102.9
102.9
102.9
102.9
112.3
112.3
112.1
108.2
108.3
106.7
118.9
including
118.9
125.3
103.0
overalls
Shoes
_
TRANSACTIONS
__
Socks
OF
MEMBERS
and
children's
103.0
102.9
wear-
Underwear
(SHARES):
Mar.
Mar.
29
238,890
217,440
271,710
323,580
29
7,003,580
6,807,840
6,233,920
7,426,600
Floor
—Mar.
29
7,242,470
7,025,280
6,505,630
7,750,180
i
—
i
TRANSACTIONS
FOR
—
;
ACCOUNT
OF
754,160
Total
sales
transactions
Total
Other
the
679.180
700,030
657,700
820,570
197,800
165,410
125,400
188,470
10,100
8,100
14,400
26,100
Mar. 29
;
.___
initiated off
203,610
220,280
131.360
208,920
213,710
228,380
145,760
235,020
:
Mar. 29
floor—
the
purchases
Mar. 29
sales
sales
268,185
Mar. 29
,
round-lot transactions for
Total
account
301,945
249,198
300,433
102.0
Stocks
(at
AND
of members—
1,126,751
1,096,885
979,111
1,234,590
I
I
„Mar. 29
AREAS
1,289,071
1,267,065
1,166,821
200,480
U.
S.
DEPT.
OF
1,435,070
of
__Apr. 15
111.5
*111.6
107.2
•107.4
108.1
Apr. 15
107.9
•107.9
109.3
Apr. 15
—Apr. 15
110.7
110.9
112.6
112.2
*113.2
113.2
foods
—___".
commodities other
than
farm
and
foods
March—
Jllncludes
428,000
barrels of
104.3
107.3
: 102.9
£2,337,000
£56,379,000
£22,618,000
and
____
S.
—
IN
loan
savings
Individuals-
OE U.
foreign
crude
runs.
73%
76%
SAVINGS
associations
$428,443
$404,496
$362,733
114,626
——
lending
institutions
MARKET
AND
S.
TRANSACTIONS
GUARANTEED
IN
129,560
246,702
221,107
183,848
195,572
.
79,173
207,045
banks
267,049
68,843
:
124,084
256,379
202,345
*192,387
$1,270,908
Mutual
RECT
22,224,000
CORPORATION
companies
Net
11,294,000
22,336,000
February (000's omitted):
trust companies
TREASURY
•12,696,000
NONFARM
FEDERAL
INSURANCE
*17,039,000
76%
—
U.
15,201,000
16,545,000
14,362,000
24,519,000
(barrels)
Bank and
Net
basis.
101.9
106.5
101.1
MINES)—
111.8
Apr, 15
products
new
OF
Total
commodities
!
BRITAIN-
of
month—barrels)
Insurance
Miscellaneous
Commodity Group—
GREAT
FINANCING
OF
—
—
101.8
106.4
:
LOAN
Savings
1,079,035
187,710
1,318,903
170,180
fOn
of
ESTATE
•—Month
33,970
1,116,928
SERIES
,
February:
end
339.510
162,320
.
,ri„...
(barrels)
Capacity used
REAL
IN
(BUREAU
Shipment from mills
379,480
35,750
1,220.145
•Revised.
of
Production
327,611
Mar. 29
PRICES,
NEW
LABOR—(1947-49 = 109):
10_:.7
100.7
LTD.—Month
CEMENT
363.361
Mar. 29
Meats
PORTLAND
44,400
.Mar. 29
sales
,
appliances-
ISSUES
BANK,
335,655
sales
Processed
CAPITAL
MIDLAND
294,255
Other
Farm
NEW
43,310
sales
WHOLESALE
__
,
396.181
Short
Total
_
__
352,871
purchases
__
household
Mar. 29
1,
Ll
__
_
_
Mar. 29
;
sales
I
.
__
*
"
Total
coverings
Month
Mar. 29
sales
Other
134,410
686,160
—Mar. 29
sales
Short
520,140
702,320
floor—
sales
transactions
Total
on
purchases
Short
Total
initiated
137,560
582,350
u
830,000
117,680
570,270
Mar. 29
i
—
651,690
108,910
Mar. 29
...
_
Electrical
Mar. 29
sales
Furniture
China
.M'ar. 29
sales
Other
,
*
Luggage
MEM¬
purchases
Short
-.
,
:
Radios
i
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
specialists in stocks in which registered-
Total
.,.
Shoes
Transactions of
All
w,M.an,| ,1IIIM
96.8
Infants'
NEW
sales—
sales
ROUND-LOT
All
r_
"
ACCOUNT
Round-lot
sales
Total
,,
109.2
Underwear
YORK
THE
STOCK
401,230
342,130
348,760
Apr.
——
Other
Other
120.8
107.9
'
__
Furs
Clothing
sales—1—
Other
113.6
122.5
98.5
:
Shoes
Shirts
Apr.
103.8
122.2
t.T«t-«wi'-Trim-#rra»
95.6
697,299
692,706
104.3
•
Short
.
w.i
Hosiery
772,858
by dealers—
of shares—_
ROUND-LOT
FOR
!
comfortables— -yZ-rrh
housedresses
5,858
92.8
112.4
•
'
and
brassieres
767,000
95.1
apparel—
and
^pr.
90.8
110.7
103.0
Blankets
and
:
.
106.1
111.6
110.7
_
Sheets
Aprons
—____i
105.9
108.8
94.9
_
Corsets
purchases
EXCHANGE
Total
25,798
Apr.
;
102.9
105.9
a-.ii
Cotton wash goods—
Domestics—
728
;
105.5
101.7
101.5
Hosiery
sales
sales
Other
Round-lot
24.617
,
dealers—
by
shares—Total
101.7
-
108.6
wear
25,070
_
sales
Number
107.0
106.6
Wl
___
children's
105.9
(riilM|
■■■!,.!'-K.,if Vl..!*,—.
r.,.^_
rr
-•■<rr
185
1
45,086.092
105.8
—
24,432
ill
46,821,950
PRICE
.
-
apparel
152
sales—
$477,673,000
1:
index
24,614
Apr.
sales..11
other
26,772,763
$501,340,100
(COPYRIGHTED)
goods
Men's
28,274,921
$522,258,300
of
ultimate customers at Jan. 31
FAIRCHILD
172
-Apr.
short
131,455
20,896,000
consumers—
—
—1— Apr.
sales
Customers'
Customers'
109,626
19,854,000
3
customers—month
27,442
1
327,758
112,688
(000's omitted)
ultimate
Apr,
sales...
4,627,419
278,514
EDISON ELECTRIC INSTITUTE:
Women's
sales)—
sales—
other
898,991
2,335,678
1,681,311
Mar. 3
of
as
Mar.
of
as
768,889
Mar. 3
3:
February
consuming establishments
public storage as of Mar.
M>r.
short
Customers'
of
30,980
920,179
;1____Apr,
—
Customers'
Number
30,995
29,184
32,270
Apr.
:
:
55,609
COM¬
Woolens
Apr.
value
116,793
59,747
BALES:
Lint—Consumed
Rayon
"T,
purchases)—
104,795
period
Piece goods—
ODD-
STOCK
shares
Dollar
.
(customers'
112,933
112,625
of
154.8
COMMISSION:
orders
Number
?
EXCHANGE
91,243
95,979
58,487
at
'
EXCHANGE—SECURITIES
•80,876
94,563
2,000 pounds)
stock
copper
Infant and
Apr.
—_1
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT
183,464
'
INDEX—
PRICE
lignite
(tons of 2,000 pounds)
INDEX
205,407
271,607
173,738
12
-
=
and
(tons of 2,000 pounds)-.
Refined
AS
Apr. 12
11—Apr.
DRUG
AVERAGE
MINES)—Month
2.89
438.2
11—-Apr.
(tons)
AND
2.98
;
activity
orders
PAINT
1926-36
3.10
3.19
2.97
432.1
ASSOCIATION:
(tons)
(tons)
Percentage of
3.21
3.19
22
-Apr. 22
——
COMMODITY
THE
Deliveries to customers—
3.13
MOODY'S
coal
(tons
Refined
3.08
3.00
Group
OF
y
4
BRADSTREET,
INSTITUTE—For month of
Crude
In
'
3.19
Utilities
(BUREAU
Copper production
115.24
V
22
Industrials
&
IN
February
anthracite
108.34
109.60
109.24
Apr. 22
Public
of
(NEW)
(net tons)
106.21
Apr. 22
Apr. 22
-
Group
*
March:
Bituminous
114.08
Apr,
-
City
STATES—DUN
OUTPUT
of
111.62
Apr. 22
*
Aa
•'
York
New
INCORPORATIONS
UNITED
AVERAGES:
Bonds
corporate
Aaa
.
DAILY
109.60
Apr. 22
____'
.—
__—
YIELD
__
.110.15
Apr. 22
___—
„.
110.15
Apr. 22
.—
,
_lii—
Public
City
of
In U.
96.75
Apr. 22
Apr. 22
:i
-
Group
York
States
24.200c
Aa
Railroad
United
Beehive coke
AVERAGES:
—
Aaa
Total
Pennsylvania
'■' .=
\
_______——Apr. 22
—
__
Central
West
6,730,464
Apr. 22
corporate
62,408,618
18,254,853
—.——,___Apr. 16
at___—.—
30,672, 841
114,095, 197
Mountain
Apr. 15
T_—
______
55,469,560
529, 000
—Apr. 16
Government Bonds
Average
Central
88,247, 516
81,251,996
Central
9,967, 000
Apr. 15
________________
PRICES
East
62,305,102
33,068,865
685,000
Apr. 17
!
-
Zinc (East St. Louis)
~
.
$22,698, 922
75,177,630
26,600,025
—
—6
9,765,000
.
at——_—.,—_—
at_,
Louis)
Atlantic
South Atlantic
BUSINESS
——
Electrolytic copper—
Export
Middle
INC.—Month
QUOTATIONS):
J.
$14,980,048
CITIES—Month
—
546,000
Apr. 15
ton)
M.
&
$478,590,000
8,145,000
&
—.
gross
(E,
$493,430,000
&
604,000
PRICES:
ton)
gross
PRICES
..Apr. 19
DUN
—
lb.)_
(per
INC.—215
DUN
—
—
_____
COMPOSITE
Finished
England
Outside
1
BKADSTRFET, INC.
IRON
VALUATION
of March:
^
-
INDUSTRIAL)
PERMIT
BRADSTREET,
New
New
-
26,493,000
between
8,175,000
...Apr. 12
_
kwh.)_„____
000
(COMMERCIAL
shipped
RESERVE
____,
INSTITUTE:
1,703,000
51,388,000
$23,734,964
and
Total
BUII.DING
.Apr. 17
"
__
3.:
exchange
stored
11,952,000
18,278,000
27,106,000
$458,498,000
Domestic warehouse credits
goods
105,731,000
37,360,000
31:
shipments
on
$314,433,000
8,317,000
BANK
—
Domestic
134,818,000
50,849,00(1
March
$234,441,000
OUT¬
RESERVE
of
80,769
6,214,000
YORK —As
11,105
70,442
27,556,000
ACCEPTANCES
80,462
26,551
8,211,000
DOLLAR
(tons)
80,450
77,448
66,620
(tons)—
77,296
85,575
26,004
137,664,000
period
777,989
627,945
ENGINEERING
-
:
85,028
of
end
NEW
15,799,000
47,048,000
690,660
(U. S. BUREAU OF MINES):
" ;
Bituminous coal and lignite (tons)——e—-——Apr. 12
Pennsylvania anthracite (tons).!——
—_——Apr. 12
Beehive coke (tons)—.—:___
;___
:__Apr. 12
FAILURES
Ago
$228,004,000
at
OF
16,533,000
COAL OUTPUT
EDISON
Month
^
Year
(tons of
Imports
17,017,000
Apr. 12
___
DEPARTMENT
output, all grades
(tons of 2,000 lbs.)
STANDING—FEDERAL
147,734,000
cars)__Apr. 12
of
.
municipal
and
Federal
Previous
INC.—Month of
foreign countries
(no.
construction
construction
smelter
BANKERS'
►158,431,000
NEWS-RECORD:
Total
INSTITUTE,
Unfilled orders at end of period
157,781,000
Apr. 12
CONSTRUCTION
Stocks
Exports
RAILROADS:
freight loaded (number of cars)
freight received frcm connections
Revenue
2,691,000
..Apr. 12
_
(bbls.)——_
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
:l—Apr. 12
Kerosene (bbls.)
at
-.
Apr. 12
Distillate fuel oil (bbls.) atl
;■—;—..Apr. 12
ASSOCIATION
zinc
Shipments
...Apr. 12
(bbls.)
Revenue
Slab
Avail.
of
(bbls.
average
(bbls.)
average
(bbls.)
CIVIL
2,141,000
2,038,000
.Apr. 12
stills—daily
output
Distillate
of that date:
Month
AMERICAN ZINC
Not
2,000 lbs.)
_
Gasoline
X
tons)
(net
gallons each)
42
are as
March:
castings
and
and
of quotations,
cases
Ago
103.1
PETROLEUM ' INSTITUTE:
oil
in
or,
either for the
are
Latest
Equivalent to—
AMERICAN
that date,
55
production and other figures for the
cover
Dates shown in first column
Year
Ago
98.1
100.4
tabulations
month available.
M«nth
Week
(percent of capacity).
or
month ended
or
Latest
STEEL INSTITUTE:
AND
steel
(1747)
$1,298,254
$1,182,753
$485,200
$6,686,500
$482,674,850
67,523
DI¬
SECURITIES
A.—Month of March:
sales
purchases
§Preliminary figure.
♦Revised figure.
'
SB
(1748)
The Commercial and Financial Chronicle-.-.-.
Continued from page 5
and
24,774 trucks (revised) last week and 124,389 cars and 32,624
trucks in the comparable period a year ago.
Canadian output last week advanced to 6,243 cars and 3,020
The Slate oi Tiade and
and
6,744
cars
The
by May. So far this year, it reported,
industry has turned out 1,635,000 cars and trucks, compared
with 2,446,000 in the like 1951 period.
Business Failures Rise
Commercial and
pletely wiped out by the National Production Authority. Effective
on Monday of this week the NPA has abolished
its controls on
the manufacture of rubber products, which specified maximum
amounts of natural rubber to be used in various products. Alloca¬
both
on
butyl
and
natural.
ended,
Fowler,
Henry
of
head
NPA, stated that from now on there will be "relatively free
petition between natural and synthetic rubber."
Steel Output
the
com¬
were
This is because railroad
steel
of
from
freight rates
mills
when 108 concerns succumbed in this size group.
A slight
increase occurred among small failures with liabilities under
$5,000.
ago
to get
going
are
up
is
states.
i
This freight rate increase won't show up
though until June 16
In prices of steel sold by warehouses.
Under government pricing
regulations, freight charges between mills and warehouses are
passed on to the warehouse customers, but the freight costs for
calendar month cannot be reflected in warehouse prices until
one
$
the sixteenth day
following a calendar month. Thus, freight costs
incurred by warehouses in May will be used in computing ware¬
house sales prices for the period of from June 16 to July 15, it adds.
The railroad freight rate increase effective on steel May 2
will be 6%
over
the year-ago rate in the East and 9%
over
the
rate in the South and West.
These amounts complete
the 15% boost the railroads wanted over the year-ago level.
year-ago
These
dollars
to
freight rate increases will also add
the
steel
industry's
costs
millions of
many
of
doing business, for the
rate increases will apply to raw materials used by steel producers,
this trade paper states.
was at a
the steel industry's operations were
level prevailing before they were
steel strike.
"Steel"
estimates
the
and castings during the week ended
rate of 96.5% of capacity, yielding 2,004,000 net
tons.
Progress toward
balance between steel supply and demand
in government thinking on controls.
Government controllers reveal that controls soon will be taken off
continues
is
and
a
reflected
most
secondary tin mill products, and they are considering a Tin
Industry Advisory Committee request that black plate be
freed from restrictions, "Steel" declares.
Plate
The
Defense
allotments
of
Production
structural
Administration
steel
to
some
classes
is
increasing
of
the
consumers
for
the thiud quarter.
Reinforcing steel, which has been in very strong demand, is
significantly easier in supply in Chicago.
Whether this is re¬
sulting from government restrictions on construction remains to
be seen, it states.
Another reflector of the
lessening of
pressure
for steel sup¬
plies is steelmaking scrap.
Shipments to mills are increasing,
quality is improved and mills' ground stocks of scrap are growing,
"Steel" notes.
The American Iron and
Steel Institute
announced
this
week
that
the operating rate of steel companies
having 93% of the
steelmaking capacity for the entire industry will be
100.4% of
(capacity for the week beginning April 21, 1952, equivalent to
2,085,000 tons of ingots and steel for castings, or an increase of
3.4 points above the previous week's actual
production of 2,038,-
tons, or 98.1% (actual) of rated capacity. The steel industry
has returned to normal operations
following recent curtailments
In the face of a threatened strike.
A month ago output stood at
103.1%, or 2,141,000 tons.
parative figures for the like week a year
ago are not
I
Car
Loadings Decline Further in Latest Week
Loadings of
totaled 690,660
freight for the week ended April 12, 1952,
according to the Association of American
Railroads, representing a decrease of 16,482 cars, or 2.3% under
the preceding week.
revenue
cars,
.
The week's
*r
«of
total
also represented
a decrease of 87,329 cars,
11.2% below the
corresponding week a year ago, and a decrease
cars, or 2.4% below the comparable period in 1950.
16,725
The amount of electric
energy distributed by the electric light
and power industry for the week ended
April 19, 1952, was esti¬
mated at 7,120,000,000 kwh.
Edison Electric Institute.
was
(preliminary figure) according to the
34,289,000 kwh. below that
of the pre¬
ceding week when actual output amounted to
7,154,289,000 kwh. It
was 389,536,000
kwh., or 5.8% above the total output for the week
ended April 21, 1951,
and 1,274,364,000 kwh. in excess of the output
reported for the corresponding period two
years ago.
U. S. Auto
»
compared with the previous week's total of
91,105
124,389 units in the like week a year
ago.
mid
Passenger
Index
Holds
car
for
of
Steady
food
price index, compiled by Dun & Bradstreet, Inc., for April 15 remained unchanged at the 21-month low
of $6.37 recorded a week ago. This contrasts with
$7.13 on the
corresponding 1951 date, or a drop of 10.7%, but it is still 6.9%
above the pre-Korea figure of $5.96.
The index represents the sum total of the
price per pound of 31
foods in general use, and its chief function is to show the
general
trend of food prices at the wholesale level.
price of $48.50
basis
(revised) units,
production in the United States advanced last
week about 1% above the
previous week's
high for the year.
Total output for the current
week
ai|d 25,488 trucks built
figure which set
a new
was made up of 92,285
in the United States, against 91,105
Grain markets were
generally firmer last week although
trading was somewhat restricted as a result of the telephone and
telegraph strike. Old crop wheat was relatively firmer than new
was
cprs
for
(EDT)
p.m.
has
been
May
on
3.
of New York
designated
subscrip¬
as
tion
ing on the New York and
Philadelphia-Baltimore Stock
changes.
the
Ex¬
The
offering is being under¬
by a group of 31 under¬
writers headed by Morgan
Stanley
written
& Co.
,
„
.
Pennsalt, producers of
400
some
chemicals
and chemical special¬
founded in 1850 and has
was
a
profit in
every year
The company has paid
dividend on the common stock
a
earlier, and with 322.56 at this time
Weakness in the latter
record
Guaranty Trust Co.
in every year since 1863, the sec¬
ond : longest
unbroken dividend
-
wheat.
additional share
held of
ex¬
pire at 3
record
crop
the
close of business April 22.
Warrants for the new stock
on
week
the
on
the
trasted with 301.33
one
at
share
per
at
mild rise early in the week, the daily wholesale
commodity price index, compiled by Dun & Bradstreet, Inc., fell
sharply at the close to finish at 300.61 on April 15.
This con¬
a
year ago.
155,349
stock
since 1855.
Sharply Lower
a
one
operated at
Wholesale Commodity Price Index Closes Week
influenced by the present
prospects for a large 1952 wheat crop as weather conditions con¬
tinued mostly favorable except for a few
dry areas of the South¬
for
a
manufacturer
the New York Stock
listed
Exchange.
The prospectus, mailed to share
owners
today, states that proceeds
from
the
stock
will
sale
be
of
this
added
additional
to
the
cash
funds of the company and will be
used for such corporate purposes
the board of directors may de¬
as
termine, 4 including
The Government crop report based on conditions as of
April 1,
showed an indicated yield of Winter wheat of
947,000,000 bushels,
or
ment- and
ities.
47.0% above last year's 645,000,000 bushels.
Corn
prices advanced
port on stocks of
corn on
re¬
April 1 which totaled 1,068,000,-
on
bushels, or 255,000,000 bushels fewer than a year ago and about
200,000,000 below the 10-year average.
Also lending support was
news
tending to confirm a corn crop failure in the Argentine.
Oats marketings declined; prices were
irregular and finished
slightly higher for the week.
Flour prices were fairly steady the
past week, although some
concessions
noted
were
Aside from
some
Spring wheat varieties toward the close.
scattered replacement
buying, however, trading
on
in all types of flour remained
very slow.
Export demand for flour
also very dull.
Trading in cocoa was marked
was
by pre-holiday
Ware¬
dullness with prices moving
irregularly in a narrow range.
house stocks were down from a week
ago,
raw sugar
and coffee markets
government
awards
on
this
of
nature, which
are
currently expected
approximately $13,000,000,
including
about
$8,000,000
for
progress
to cost
construction of
at
Calvert
plant facilities
new
City, Ky., to produce
chlorine, caustic soda and anhy¬
drous ; hydrogen
chloride,
and
about $2,200,000 for expansion and
improvement of production facili¬
for
synthetic ammonia ak
ties
Wyandotte, Mich.
Joins Neary,
were
in other commodities and securities markets.
price-fixing and
-
have been authorized by the board
and
on
which work is now in
a year ago.
irregular with prices
moving slightly lower, largely in sympathy with other markets.
Cotton was steady and firm most of the
week, but moved
sharply lower at the close. The decline was influenced
by active
liquidation induced by slow yarn and cloth business and weak¬
ness
-
totaling 97,841 bags
against 101,403; they compared with 123,907 bags
The
the improve¬
expansion of plant facil¬
Projects
the Department of Agriculture
on
farms
000
Mill and export
various cotton construc¬
tions
helped to support the market in early dealings.
Mill
consumption of the staple during the March period, as estimated
by
the New York Cotton
Exchange, was down slightly to 740,000
bales, from 769,000 in the preceding period, and
903,000 in the
corresponding period last year.
Purcell
(Special to The Financial Chronicle)
LOS
Pink
ANGELES, Calif.—Sidney
has
Neary,
become
Purcell
associated
&
with
210 West
Seventh Street, members of the
Los Angeles Stock Exchange. He
was -
Co.,
previously with Barbour,
Company.
Smith &
With Marache Sims
(Special
to
The
Financial
Chronicle)
.
Trade Volume Affected
Retail
trade
LOS
remained rather wary.
Total retail sales volume in the
country in the week was
estimated by Dun & Bradstreet to be from
3% to 7% higher than
a year ago.
Regional estimates varied from the levels of a
With Merrill Lynch
(Special
April 12,
1952, increased 11% from the like period of last year.
In the
preceding week an increase of 8% was registered above the like
period
a year ago.
For the four weeks ended April 12, 1952, sales
advanced 5%.
For the period Jan. 1 to April 12,
1952, department
store sales registered a decline of
7% below the like period of
the preceding year.
a
Sixth
to
1952, increased 2% above the like period of last
ceding week
similar week
an
increase of 5%
of 1951, while
(revised)
year.
In the
now
with
Joins Staats Staff
LOS
G.
ANGELES,
Paradise
has
Calif.—Victor
become
William R.
connect¬
Staats
& Co.,
Spring Street, members
of the New York and Los
Stock Exchanges.
pre¬
increase of 2% was
ago. For the period Jan. 1 to April 12, 1952, volume declined
10%
under the like period of the
preceding year.
an
Chronicle)
Calif.—Louis
(Special to The Financial Chronicle)
J.
was recorded above the
for the four weeks ended April 12,
registered above the level of a year
Financial
Thompson
King Merritt &
Company, Inc., Chamber of Com¬
merce
Building. Mr. Kurze was
formerly with E. F. Hutton & Co.
are
640 South
According to the Federal Reserve Board's index, department
City for the weekly period ended April 12,
The
S. Kurze and Hubert L.
ed with
store sales in New York
,
ANGELES,
a
ago.
Chronicle)
Joins King Merritt
the week.
year
Financial
Street.
(Special
result of the
customary post-Easter trend along with two rainy days
early in
Volume slumped an estimated 10% from the
like period
The
ANGELES, Calif.—Robert
B. Dunlap is with Merrill
Lynch,
Pierce, Fenner & Beane, 523 West
LOS
Department store sales on a countrywide basis, as taken from
the Federal Reserve Board's index for the week
ended
to
LOS
to +6,
+3, and
as
the
Co., 634
Spring Street, members of
the Los Angeles Stock Exchange.
South
year
Southwest +1 to -|-5.
Calif.-^Tohn
staff of Marache Sims &
declined
earlier by the following percentages:
ANGELES,
E. Travers has been added to
by Seasonal Recession
perceptibly in the period ended on
Wednesday of last week from the high mark reached in the few
days before Easter.
As during the prior week the total dollar
volume of retail sales was
slightly higher than in the comparable
week a year ago,
although the year-to-year gain was not quite as
large. In sections of the nation affected by labor unrest consumers
1952,
car3
of
each seven
ties,
Following
additional
an
common
agent for the company. The
rights have been admitted to trad¬
21-Month Low
Retail trade in New York last week declined
Output Reflects Mild Increase the Past Week
Passenger car production in the United States the
past week,
according to "Ward's Automotive Reports," rose to
92,285 units,
'
Price
scribe
shares
New England + 3 to
+7, East +4 to +8, South +2
Midwest and Pacific Coast
+5 to +9, Northwest — 1 to
Electric Output Continues Downward Trend
The current total
The wholesale
Com¬
available,
according to the institute.
^
Food
Pennsylvania Salt Manu¬
facturing Co. on April 22 offered
to
share owners rights to sub¬
west.
By the end of the week,
back up almost to the high
dropped in anticipation of a
production of steel for ingots
April 19
the week
Despite this rise, failures remained 41%
at
metal-
in
Casualties
involving liabilities of $5,000f or more dipped
slightly to 152 the past week, but were more numerous than a year
Wholesale
again May 2.
generally on an f.o.b. mill basis,
thus leaving it to the buyer to pay the freight charges.
Conse¬
quently, those who get their steel by rail will be hit, this magazine
Sale
with 1950.
even
100.4% of Capacity
working.
188
below the prewar total of 316 in 1939.
Scheduled This Week to Recover to
Eleven days from now it'll cost some consumers more
steel from the mill, says "Steel," the weekly magazine of
to
rose
exceeded the 151 which occurred in the similar week of 1951 and
inventory con¬
as are
industrial failures
Slightly
ended April 17 from 184 in the preceding week, Dun & Bradstreet,
Inc., noted. At the highest level since July last year, casualties
Both natural and synthetic rubber controls were almost com¬
trols
Stk. to Share Owners
cars and 2,313 trucks in the preceding week
and 2,745 trucks in the similar period of a year ago.
of 2,000,000 cars and trucks
tion of butyl synthetic rubber is also
Pennsalt Offers New
trucks, against 4,988
Indnstiy
the
"
-Thursday, April 24, 1953
Angeles
Burnhams, Inc.
BUjFFALO, N. Y.—J. Burnham3„
Inc.
is
business
engaging
from
Walden Avenue.
in
a
offices
securities
at
578
*r»
Volume 175
Number 5110
.
.
The Commercial and Financial Chronicle
.
^-Alabama Gas Corp.
(5/15)
April 17 filed $4,000,000 first mortgage bonds, series C,
1971.
due
Proceeds—For construction program. Under¬
writers
To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
—
Inc.; White, Weld
Kidder, Peabody & Co. and Stone & Webster Se¬
& Co.,
curities
mon
Corp.
Bros.
(jointly); The First Boston Corp.; Salo¬
Hutzler, Equitable Securities Corp. and
&
Carl M. Loeb, Rhoades & Co.
Aluminum
Co.
of
(jointly).
stock
common
—None.
Spokane, Wash.
—For diamond
drilling and mine development. Office—
Empire State Bldg., Spokane 1, Wash. Underwriter
•—None.
/
.
if American Can Co.
filed
17
989,599
holders at rate of
of
common
stock
(par
one
common stock¬
such share for each 10 shares held
May 8; rights to expire May 26. Price—To
by amendment. Proceeds — For expansion
working capital. Underwriters—Morgan Stanley &
Co. and Clark, Dodge & Co.,. New York.
be supplied
and
•
American
Greetings Corp.
—
greeting cards.
land, O.
American
$12.50)
to
Underwriter—McDonald
Hard
filed
28
be
offered
&
Co., Cleve¬
Co.
shares
of
common
stock
(par
subscription by stockholders
for
about April 25 at rate of one new share for each four
shares of preferred stock or two shares of common stock
held (with oversubscription
privileges); rights to expire
about May 12. Price — To be
supplied by amendment.
Proceeds—For plant additions and construction. Under¬
writer—Blair, Rollins
rarily postponed.
•
&
Co.
Inc.,
New
York.
Tempo¬
American Machine &
Foundry Co.
March 27 filed a maximum of
255,467 shares of common
stock (no par) being offered in
exchange for all of the
191,600 shares of International Cigar Machinery Co. stock
(not already owned by American) on a lVa-for-l basis.
Offer
to
expire
May
on
23,
Common^
Wisconsin Electric Power Co
(R.
be
by
supplied
S.
Dickson &
(The
Carpenter Paper Co., Omaha, Neb. (4/25)
April 1 filed 60,000 shares of common stock (par $1).
Co.
First Boston
April 17
debentures due
Proceeds
For
—
Central
Oklahoma
Blyth
&
Co.,
Inc.)
Bonds
invited)
Common
&
Becker
Co.)
Preferred
&
Co., Inc.)
Jersey Bell Telephone Co
(Bids
11
Debentures
EDT)
a.m.
Dallas, Tex.__Debs. & Pfd.
(Blair, Rollins & Co., Inc.)
Bonds & Debs,
EDT)
a.m.
$110,000 of convertible
Price—At par
1965.
capital.
Office
($100
2034
May 7, 1952
—
Chicago, St. Paul, Minneapolis &
Underwriter—None.
Omaha Ry.
Corp.
1
Equip. Tr. Ctfs.
(Bids
19
(letter of notification) 50,000 shares of com¬
mon stock
(par 10 cents). Price—At market (approxi¬
mately $2 per share).
Proceeds—To A. M. Metz, the
selling stockholder.
Office — Braniff Bldg., Oklahoma
City, Okla.
be
(Bids 11:30
working
Oil
and
Texas Electric Service Co
Pennsylvania Ave., Madison, Wis.
March
to
Southern Union Gas Co.,
Co.,
Madison, Wis.
(letter of notification)
Corp.
Refining Co
(A. G.
New
Offering—Expected today.
if Celon
Co., Inc.)
Preferred
(McDonald
Ashland Oil &
held; rights to expire on May 12. Price—$24.50
share. Proceeds—To repay bank loans. Underwriters
—Morgan Stanley & Co. and Clark, Dodge & Co., New
York.
Crawford
May 6, 1952
share for each five
one new
H.
American Greetings Corp
Case
(J. I.) Co., Racine, Wis.
April 4 filed 377,058 shares of common stock (par $12.50)
to be offered for subscription by common stockholders
April 24 at rate of
D.
Proceeds—For
amendment.
•
of record
and
Bancorporation
(Bids
Underwriters—Kidder, Peabody & Co.,
York, and Kirkpatrick-Pettis Co., Omaha, Neb.
New
CDT)
noon
England Electric System
(Bids
Common
EDT)
noon
Union Oil Co. of California
(Dillon,
Underwriter—Israel & Co., New York.
if Central
unless
extended.
Dealer-
Manager—Reynolds & Co., New York.
Vermont
Public
Service
Corp.
Debentures
Read
&
J
Co.)
May 8, 1952
April 23 filed $1,500,000 of first mortgage bonds, series H,
due May 1, 1982, and 108,900 shares of common stock
(par $6). The latter issue is to be first offered for sub¬
scription
share
Rubber
96,655
ISSUE
(5/6)
April 15 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Business
Manufacture and sale of
March
•
each).
shares
about
or
Northwest
subordinated
(5/8)
$12.50) to be offered for subscription by
on
Sonoco Products Co., Hartsville, S. C
per
April 7 (letter of notification) 100,000 shares of capital
stock (par 10 cents). Price—25 cents per share. Proceeds
REVISED
May 5, 1952
common
(par
shares
if Ambassador Mines Corp.,
April
& Co., Wharton, N. J.
5,000 shares of
ITEMS
•
PREVIOUS
$1).
Price—At the market.
Proceeds—To
Jerome L. Long, the selling stockholder.
Underwriter—
Eisele & King, Libaire, Stout & Co., New York.
New
(no par)
reserved for issuance pursuant to
Employees Stock Op¬
tion Plan.
Price—At a fixed price based on market.
Proceeds—For general corporate purposes. Underwriter
401
(L. E.)
Carpenter
Price—To
for
by
stockholders
common
each
six
shares
held.
the
at
New
rate
of
American
Can
(Morgan
Co
struction.
Underwriters—To
be
&
and
Co.
Clark,
Dodge
&
Co.)
Chicago & Western Indiana RR.___:
one
(The
First
Boston
and
Corp.
Bonds
Halsey. Stuart
&
Co.
Inc.)
England Public
waive its
subscription rights to the
Proceeds—To repay bank loans and for new
shares.
tive
will
Common
Stanley
Service Co., parent, owner of 35.5% of Central Vermont
common,
determined
May 13, 1952
new
Firestone Tire & Rubber Co
con¬
(Harriman,
by competi¬
Food
bidding.
Probable bidders: (1) For bonds, Halsey,
Inc.; Lehman Brothers; Kidder, Peabody &
Co.; Coffin & Burr, Inc. and First Boston Corp. (jointly);
R. W. Pressprich & Co. and Equitable Securities Corp.
(jointly); Union Securities Corp. (2) For stock, Coffin
& Burr, Inc.; Blyth & Co., Inc.; Merrill
Lynch, Pierce,
Debentures
& Co.,
Inc.)
Machinery & Chemical Corp._!
(Kidder,
Stuart & Co.
Ripley
Peabody & Co.
and Mitchum,
Common
Tully
& Co.)
Lion Oil Co
Common
(Blyth
&
Co.,
Inc.)
New York State Electric & Gas Corp
Common
(The First Boston Corp.)
Fenner & Beane.
Worcester County Electric Co
(Bids
noon
if Century Acceptance Corp., Kansas City, Mo.
April 14 (letter of notification) $250,000 of 15-year 6% *
junior registered sinking fund debenture notes due
April 1, 1967, and 24,500 shares of class A common stock
(par $1). Price—Of notes, at par (in denominations of
$100 each), and of stock, $2 per share. Proceeds
For
working capital. Office—1334 Oak St., Kansas City, Mo.
Iowa Power & Light Co
Underwriter—Wahler, White & Co., Kansas City, Mo.
Alabama
Bonds
EDT)
May 14, 1952
(Smith,
..Common
Barney & Co.)
—
•
Ashland Oil &
Refining Co. (5/6)
April 16 filed not exceeding 600,000 shares of $100 par
value cumulative second preferred
stock, series of 1952,
convertible prior to June 15, 1962.
They will be initially
offered for subscription by common stockholders. Price
—To be
supplied by amendment.
Proceeds—For capital
additions and improvements and working capital.
derwriter—A. G. Becker & Co.
Un¬
Inc., Chicago, 111.
Citizens
May 15, 1952
Gas Corp
debentures
due
1969
Metals & Chemicals
share).
Price—At 99% and accrued interest.
National Fuel Gas
Kidder &
Bell
&
March 28
stock
C.
U.
Bay.
Co., Morton Grove, III.
(letter of notification) 1,000 shares of
1952
Co
Debenture*
page
58
Iowa Power & Light Co
(Bids
to
Bonds
be
invited)
April 25, 1952
common
Carpenter Paper Co
(Kidder,
for
subscription
by;'common
April 29 at rate of
one
and one-half shares of
stockholders
and
Debs.
'Canadian Fund,
Inc.
(Md.)
Business
—
per
Closed
end
(Hayden,
New
Stone
&
Common
<Allen
£:
&
>.
'
•
■
•
•
.
•
.
■
-
'
•'
;
'
.
&
Weeks
and
Stone
Webster
&
Hydrides, Inc., Beverly, Mass
April 18 (letter of notification) 2,000,000 shares of com¬
mon
stock.
Price—cents per share.
Proceeds—To
develop mine property. Office—209 East Bennett Ave.,
24, 1952
to
be
invited)
■
,
'
.
•
"
J
July 1, 1952
A.
Uomasney
&
Securities
Illinois Bell Telephone Co
(Ottering
Corp.)
-Common
to
Common
stockholders)
July 8, 1952
Co.)
~
Peabody Coal Co
Georgia Power Co
Bonds
•.
Southwest Natural Gas Co
(W. E. Hutton & Co.
and
(Bids
i-
*
—Bond*
(Bids
to
be
invited)
Common
Craigmyle, Pinney & Co.)
noon
Bonds
EDT)
April 30, 1952
Business—Open-end
if Canyon Gold, Inc., Cripple Creek, Colo.
Cardiff Fluorite
'I ^
Pfd.
Union Electric Co. of Missouri
Cripple Creek, Colo.
*
Bridgeport Brass Co., Bridgeport, Conn
^ Canadian Fund, Inc., New York
April 16 filed 1,700,000 shares of capital stock (par $1).
Price—At market.
Proceeds—For investment
Under¬
writer—Calvin Bullock, New York.
investment company.
stocks)
on
Bond*
(Bids
Co.)
(Halsey, Stuart & Co. Inc.)
&
Bonds & Stock
10:30 a.m. EST
Gulf Power Co
Pfd. & Common
April 29, 1952
(D.
Underwriters—Kidder, Peabody & Co. and Dominick
Dominick, New York.
t;
bonds;
'
Metal
company.
10, 1952
June
and Adamex Securities Corp.)
Co.
Jersey Natural Gas Co
(Hornblower
(4/30)
investment
(Bids noon EST on
•
Corp.,
(par $1).
share. Proceeds—For invest¬
-
Common
June
Lone Star Cement Corp
March 13 filed 800,000 shares of
capital stock
Price—Probably $12.75
&
Dominick)
April 28, 1952
stock
blower & Weeks and Stone & Webster Securities
New York.
&
Preferred
(Bids noon EDT)
;
Management,
Kansas Gas & Electric Co
of
held; rights
to expire on May 13.
Price—To be supplied by amend¬
ment.
Proceeds—To redeem outstanding 3%%
serial
debentures and repay 2%% notes. Underwriters—Horn-
Dallas Power & Light Co
Kirkpatrick-Pettis & Co.)
,
Oil & Gas Property
Inc.
preferred share for each
common
May 26, 1952
Common
Peabody & Co.
(Dominick
Feb. 21
Common
Co.)
Gossett
,,
ment.
on
NEW ISSUE CALENDAR
Jpo., New York.
Bridgeport Brass Co., Brideport, Conn. (4/29)
April 8 filed 125,732 shares of cumulative preferred
stock (par $50-convertible
through May 1, 1962) to be
seven
&
May 21, 1952
Price—At market (approximately $27.25
per share). Proceeds — To R. Edwin Moore, the selling
stockholder.
Underwriter—Ames, Emerich & Co., Inc..
Chicago, 111.
record
Corp
Underwriter—A. M.
(par $5).
offered
invited)
(Bids to be Invited)
Continued
April 17 (letter of notification) 2,631 shares of common
stock (par $1). Price—At market
(approximately $38 per
Proceeds—To
be
May 20,
Pro-
ic Bay Petroleum Corp., Denver, Colo.
share).
to
(Beer
(with warrants attached to
purchase 3,750 shares of class A common stock at $15
per share and 750 shares of class B common at 25 cents
per
Bonds
(Bids
Credit
Corp., Washington, D. C.
April 10 (letter of notification) $125,000 of 6% subordi¬
nated
Canadian Fund, Inc..
(Kidder,
Peabody
First National
Oil
&
Bank
(Offering
Rainbow
Common
Co.
and
Dominick &
of Portland
to stockholders—not
Dominick)
Common
underwritten)
Ltd
Common
(Hayden, Stone & Co.
and T. H. Jones & Co.)
Underwriter—None.
Mines, Ltd., Toronto, Canada
filed
675,000 shares of common stock (par $1).
Price—$1.25 per share. Proceeds—For development ex¬
penses and general corporate purposes. Underwriter—
Frank P. Hunt & Co.,
Inc., Rochester, N. Y.
ifwvVfv>'3
ADDITIONS
SINCE
working capital.
America
April 1 filed 489,073 shares of
Registration
March 20 (letter of notification)
stock
,
(1749)
it INDICATES
Securities Now in
hmmmt
May 1, 1952
Denver & Rio Grande Western RR
(Bids
1
p.m.
New York
Eq. Tr. Ctfsc
Husky Oil Co
Common
(Blyth & Co., Inc.)
Boston
Philadelphia
CDT)
c
Chicago
Pittsburgh
San Francisco
Private Wires to all
offices
Cleveland
'
**'' *""
^ X t <JV J
wo
The Commercial and Financial
Continued
from
page
57
writers— Halsey,
ceeds—To acquire loan offices
Office
and subsidiaries.
—1028 Connecticut
Avenue, Washington 6, D. C. Under¬
writer—Emory S. Warren & Co., Washington, D. C.
★ CMS Strategic Metals, Inc., Portland, Ore.
April 7 (letter of notification) 250,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
To prospect and develop claims. Office—8000 S. E. Fos-
teKRoad, Portland, Ore. Underwriter—None.
it Colo-Kan Fuel Corp., Denver, Colo.
April 15 (letter of notification) 2,000,000 shares of class
A
stock. Price—Five cents per share. Proceeds
drilling and equipment. Office—711 E. & C. Bldg.,
Denver, Colo. Underwriter—None.
common
—For
it Consolidated Insurance Co., Phoenix, Ariz.
March 26 (letter of notification) 25,000 shares of capital
stock.
Price—At
par
($1
share),
per
Proceeds—For
working capital. Office—777 North Central Ave., Phoe¬
nix, Ariz. Underwriter—None.
Consolidated
Underwriters Investment Corp.
(letter of notification) 30,000 shares of class
stock.
Price—At par ($10 per share). Pro¬
ceeds—For working capital. Office—507 Spring Street,
March
A
26
common
Shreveport, La.
convertible preferred stock
shares of
common
(par $1)
and 200,000
stock (no par) reserved for
conversion
of such preferred stock. Price—$3 per share. Proceeds—
For expansion of sales and
working capital. Office—
1
East
35th
St., New York, N. Y. Underwriter—Aetna
Securities Corp., New York. Offering—Expected at any
date.
v.-;;..
Continental
Royalty Co., Dallas, Tex.
March 18 (letter of notification) 120,000 shares of com¬
mon stock (par $1).
Price—$2.50 per share. Proceeds—
v
Detroit
To
purchase royalties and mineral deeds, oil and gas.
Office—740 Wilson Building, Dallas Texas. Underwriter
Southwestern Securities Co. and Hudson Stayart & Co.,
Inc., of Dallas, Texas.
Sulphur & Phosphate Co.
March 25 (letter of notification)
145,000 shares of com¬
mon stock
(par 10 cents). Price—$1,371/2 per share. Pro¬
ceeds
To pay indebtedness and for new construction.
—
Office—2010 Tower Petroleum
Bldg., Dallas, Tex.
derwriter— D.
&
Underwriters—Van Al¬
styne, Noel & Co., New York, and Crowell, Weedon &
Co., Los Angeles, Calif.
Offering—Postponed tempo¬
stock
(par
Office
Statement withdrawn.
Daitch
Crystal Dairies, Inc.
Jan. 31 filed 147,000 shares of common stock
(par $1), of
which 125,000 shares will be offered
by company and
22,000 shares by present stockholders. Price—To be sup¬
plied by amendment. Proceeds
To open additional
—
Underwriter—Hirsch &
Co., New York.
Offering—Now expected early in May.
21
filed
writers
—
be
new
determined
by
construction.
Under¬
competitive
bidding.
Probable bidders: Kidder,
Peabody & Co., Blyth & Co.,
Inc. and Merrill
Lynch, Pierce, Fenner & Beane (joint¬
ly); The First Boston Corp.; Lehman Brothers; Union
Securities Corp.; Harriman
Ripley & Co., Inc.; Equitable
Securities Corp. Bids—Expected to be received at
noon
(EDT) on May 26.
Dayton Power & Light Co.,
March 18 filed 50,000 shares of
to be reserved under the
Dayton, O.
common stock (par
$7),
company's employees' stock
plan.
Underwriter—None.
Dean
Co., Chicago, III.
April 10 (letter of notification) 4,000 shares of common
stock (par $10).
Price—$16.50 per share.
Proceeds—
To T. A.
Dean, trustee under the will of J. R. Dean.
Office—666 Lake Shore
Drive,
writer— Boettcher &
* Deardorf Oil
Chicago 11, 111.
Co., Denver, Colo.
Corp.,
Under¬
—
Diesel Power Corp., Pittsburgh, Pa.
Jan. 10 filed 475,000 shares of common stock being of¬
fered first to holders of preferential rights for a period of
30
days
from
Co.,
and
com¬
Price—At par (10 cents per
share). Proceeds
Office—219 Fidelity Bldg., Okla¬
City, Okla. Underwriter—None.
Deerpark Packing Co., Port
Jervis, N. Y.
March 21 (letter of
notification) 235,000 shares of
mon stock
(par 10 cents).
Price—$1.25 per share.
For
improvements,
Pro¬
RFC loan of $41,050 and for working
Sycamore,
III.
—
—
Underwriter—None.
★ Denver Export & Import
Corp.
April 18 (letter of
notification) 200 shares of common
stock (no par).
Price—$100 per share. Proceeds—For
Office—2440 Blake St., Denver
2, Colo.
Underwriter—None.
Detroit Steel
Corp.
Feb. 5 filed $25,000,000 of
4%% first mortgage bonds due
x\arch 1, 1967.
Price
To be supplied
by amendment.
Proceeds—To retire $13,950,000 of
presently outstanding
first mortgage bonds
and for expansion
program. Under¬
L.
Wright
work.
Underwriter—None.
it Imperial Hardware Co., El Centro, Calif.
April 14 (letter of notification) 2,500 shares of class B
stock (par
$100), of which 1,600 shares are to be offered
exchange for a like number of common shares held
by certain employees, and the remaining 900 shares are
to be offered to a select group of employees at $120 per
in
share.
Purpose^—To
segregate
stockholders so
common
employees hold restricted class B stock and others un¬
restricted
class
A
stock.
Underwriter^—None.
Co., Inc., Philadelphia, Pa.
Corp., New York.
Eastern
April
7
(par
market
(approximately $15
per share).
Proceeds—To J. M. Curley, the selling stock¬
holder. Underwriter—Hornblower &
Weeks, New York.
Products
April 10 (letter of notification) 35,000 shares of class A
stock (par $1) to be offered to employees. Price
—$8 per share.
Proceeds—For working capital.
Office
Street, Newark 5, N. J.
Fenimore
Iron
Underwriter—None.
one
scribers will
Underwriter—Weber-Millican Co., New York.
common
receive, for each share subscribed,
a
Sub¬
war¬
funds) per share until June 1, 1953, or an additional 2,003,792 shares.
Unsubscribed shares will be offered by
the company at the same
price and carrying the same
warrants.
Proceeds—To finance drilling program. Un¬
Statement
effective
it Firestone Tire & Rubber Co.
March
April
Flathead Petroleum Co.,
21
filed
600,000
Price
10 cents).
—
—To
shares
of
equipment and drilling
it Food Machinery & Chemical Corp.
April 23 filed 300,000 shares of
Price—To
be
supplied
by
(par
—
For
common
(5/13)
stock
amendment.
general corporate purposes.
stock
Proceeds
(par $10).
Proceeds—For
Underwriters—Kidder, Pea-
body & Co., New York, and Mitchum, Tully & Co., San
Francisco, Calif.
Golconda Mines Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock. PriceAt par ($1 per share).
Underwriter—George F. Breen
New York.
Proceeds—For drilling expenses, repayment
of advances and working capital.
Offering—Date not set
Great Western
Feb.
25
mon
stock.
drill
wells.
Petroleum Co.
(letter of notification)
299,900
shares of
com¬
Price—At par
($1 per share). Proceeds—To
Empire Bldg., Denver 2, Colo.
Underwriter—Steele & Co., New York.
Office—328
Gustin-Bacon
of
which
Manufacturing Co.'
121,300 shares
subscription by
are
common
being offered
common
(par $5),
by the
Certain
stockholders waived
their
rights to
68,940 shares, which, together with 140,600 shares were
publicly offered on April 18.
Price—$21.50 per share.
Proceeds—To repay bank loans and for new
equipment.
Underwriter—Morgan Stanley & Co., New York.
it Hamilton Land Co., Reno, Nev.
Price—$1
Hex
Underwriter—
Foods,
Inc., Kansas City, Mo.
March 14 (letter of notification) 2,500 shares of common
stock
(no par).
Price—$20 per share.
Proceeds—To
F. T.
Hoeck, the selling stockholder.
Underwriter—
Prugh-Combest & Land, Inc., Kansas City, Mo.
it Hudson
April
Fund, Inc., New York
200,000 shares of capital stock
17 filed
Price—At market.
Proceeds
writer—Hudson Fund
—
(par $1).
For investment.
Under¬
Distributors, Inc., New York.
&
share
per
capital payments
for working
Bohemia, N. Y.
and
Corp., New York.
on
(par $1).
(Canadian funds).
Proceeds—For
property account and option agree¬
ments, purchase of machinery and operating
expenses.
Underwriter—N one.
Johnston Adding Machine Co., Carson City, Nev.
(letter of notification) 150,000 shares of capital
March 5
stock.
Price—At par
($1 per share).
Proceeds—To
chase tools and materials and office equipment.
writer—None.
pur¬
Under¬
City (Kansas) Telephone Co.
(letter of notification) $294,000 of first mortgage
4%% bonds, series A, due Feb. 1, 1977 (in denominations
each). Proceeds—To retire bank loans. Under¬
writer—Wachob-Bender Corp., Omaha, Neb.
of $1,000
Kansas-Colorado Utilities, Inc., Lamar, Colo.
Mar^i 14 (letter of notification) 5.866 shares of common
stoc|£ Price—$12.75 per share. Proceeds—To SullivanBrooks
Co.,
WesfYElm
Inc.,
the selling stockholder.
St.,
Lamar, Colo. Underwriter
Brooks Co., Inc., Wichita, Kan.
Office—112
—
Sullivan-
Kearney (James R.) Corp., St. Louis, Mo.
Apri|< 14 (letter of notification) 21,000 shares of
it
mon
stock
share.
(par $5).
Proceeds
—
Ave., St. Louis 10, Mo.
Jacobs & Co., Inc., St. Louis, Mo.
it Kingsburg
April
stock
Cotton
Office
—
per
4236
Underwriter—Semple,
Oil Co.
18
(letter of notification) 5,000 shares of capital
(par $1). Price—$5 per share. Proceeds—To R. W.
Fewel, the selling stockholder.
Co., Los Angeles, Calif.
:
it Kirby Petroleum
April
com¬
Price—At from $10.25 to $10.75
For working capital.
Clayton
17
(letter
ferred stock
of
Underwriter—Fewel
Co., Houston, Texas
notification) 11,400 shares
of
&
pre¬
(par $10).
Price—At market (not less than
Proceeds—To W. T. Moran, the selling
$8.50 per share).
Underwriter—Harris, Upham & Co., New
York.
Kirk
March
Uranium
24
common
For
(letter
stock.
Corp., Denver, Colo.
of notification) 1,000,009
Price
exploration
—
work.
White Plains, N. Y.
30 cents per
Office
Building, Denver, Colo.
—
share.
405
shares
Proceeds
Interstate
;j£tock.
For
imploring
90 North
of
—
Trust
Underwriter—Gardner &
Co.,
•
it Knbx-Arizona Copper Mining Corp.
Apriins (letter of notification) 150,000 shares of
mon
April 14 (letter of notification) 300,000 shares of capital
stock. Price—At par (10 cents per
share). Proceeds—To
acquire ore dumps and for oil leases and royalties. Of¬
fice—139 North Virginia St.,
Reno, Nev.
None.
Airport,
com¬
Proceeds
March 20 filed 200,000 shares of common stock
com¬
stockholders of record
one-for-five basis (with rights to expire on
and the balance will be sold by certain stock¬
on a
April 25)
Office—MacArthur
share.
per
transport aircraft
purchase two
stockholder.
stock
284,000 shares of
Price—$1
Jersey Yukon Mines Ltd., Toronto, Canada
;
common
(par 10 cents).
Junction
Underwriter—None.
purposes.
Washington, D. C.
(letter of notification)
capital.
Feb. 29
Monroe, Wash.
50 cents per share.
18
stock
mon
10.
(5/13)
April 23 filed $75,000,000 25-year debentures due May 1,
1977.
Price—To be supplied by amendment.
Proceeds—
For plant expansion and
working capital.
Underwriter
March
Inc.
(par 10 cents). Price—$1 per share. Proceeds—For
—James T. DeWitt & Co..
rant to purchase one additional share at $1.25 (Canadian
derwriter—None.
Aero Services,
Technical
(letter of notification) 300,000 shares of common
working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
stock
share for each two shares held.
new
Feb. 15
stock
Underwriter—Hunter Securities
Mines, Ltd., Toronto, Canada
(par $1)
stock purchase warrants of which
basis of
ing
it Island Air Ferries, Inc.
Co.
common
—50 Paris
(letter of notification) 599,700 shares of class A
stock (par 25 cents).
Price—50 cents per share.
drilling and equipping well and for work¬
capital.
Office—11 Commerce St., Newark, N. J.
common
International
Steel
Price—At
Electric
Co., Inc., New Y/ork.
(Nev.), Newark, N. J.
Proceeds—For
Offering—Now being made.
Stainless
$5).
Inland Oil Co.
Feb. 26
Corp., Baltimore, Md.
(letter of notification) 4,000 shares of common
stock
Underwriter—Barrett Herrick &
&
it Dumont Electric Corp.
April 17 (letter of notification) 36,000 shares of common
stock (par 10 cents). Price—$2.75
per share. Proceeds—
To selling stockholders. Underwriters—Aetna Securities
—
Underwriter—Arthur
holders.
com¬
April 11 (letter of
notification) 20,556 shares of common
stock.
Price
$10 per share.
Proceeds
For general
purposes.
Office—112 West Elm
Street, Sycamore, 111.
working capital.
exploration
Spokane 4, Wash.
Proceeds
Office—823 First Ave.,
Price—15 cents per share.
(par 5 cents).
finance
stock (par 25 cents) to be first offered\to stockholders.
Price—$2.50 per share.
Proceeds—For working capital.
(Pa.)
April 17 (letter of notification) $100,000 of 10-year 7%
mortgage convertible sinking fund bonds due June
1, 1962. Price—At 98% of principal amount. Proceeds—
April 14
DeKalb-Ogle Telephone Co.,
statement.
stock
first
pany for
capital.
registration
Underwriter—Graham &
March 28 filed 261,900 shares of
stock.
repay
of
date
share).
per
it Idaho
Independent Plow, Inc., Neodesba, Kan.
Feb. 15 (letter of notification) 120,000 Shares of common
homa
To
($1
Pittsburgh, Pa. Proceeds—For development costs
working capital. Statement effective April 2.
—Forjworking capital.
ceeds
effective
Price—At par
•
Oklahoma
City, Okla.
April 14 (letter of notification)
2,000,000 shares of
mon
per share.
Pro¬
development program.
and
—Harriman Ripley & Co., Inc., New York.
100,000
parent, and for
To
rehabilitation
Suite 839, 60 East 42nd St., New York 17, N. Y.
Underwriter—Gardner & Co., White Plains, N. Y.
(5/26)
shares of cumulative preferred
stock (no par). Proceeds—To
repay advances from Texas
Utilities Co.,
Price—50 cents
cent).
one
ceeds— For
a
Underwriter—Blyth & Co., Inc., San Francisco and New
April
Refining^ Ltd., a
Blyth & Co., Inc.,
—
San Francisco and New York.
—To
—
★ Dallas Power & Light Co.
Husky Oil &
Underwriter
subsidiary.
of properties and
acquisition
and
investment in
Devil Peak Uranium, Ltd.
(Nev.)
April 7 (letter of notification) 600,000 shares of common
2,003,792 common
2,003,792
shares are to be offered to present common
stockholders at 75 cents per share (Canadian
funds) on
Laboratories, Berkeley, Calif.
supermarkets.
exploration
Leadville Mines Co.
April 11 (letter of notification) 300,000 shares of common
and
April 4 filed 82,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds — To
repay bank
loans and for other corporate purposes.
York.
for
to increase
rarily.
Jan. 25 filed 4,007,584 shares of
County Gas Co. (4/28-5/2)
Jersey Natural Gas Co. below.
Cutter
supplied by amendment.
this
ceeds—For expansion program.
Co., Inc., New York.
See New
•
stock, plus $1,050,000 from sale of 100,000
shares to Northern Natural Gas Co., to be
of
Canadian
Un¬
Letter has been withdrawn.
•
be
sale
additional
Corp.
Proceeds—From
Price—To
used
Continental
Bernheimer
Husky Oil Co., Cody, Wyo. (5/1)
r
of common stock (par $1).
March 28 filed 300,000 shares
Feb. 5 filed 600,000 shares of $1.50 convertible preferred
stock (par $25). Price—To be filed by amendment. Pro¬
Federal
F.
Steel
•
1952
Thursday, April 24,
.
.
.
it Dixonville Coal Co.
Underwriter—None.
it Continental Radiant Glass Heating Corp.
April 16 (letter of notification) 100,000 shares of cumu¬
lative
Stuart & Co. Inc. of Chicago and New
York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif. Offering—Postponed
temporarily.
Chronicle
Price—At
par
($1
per
share).
com¬
Proceeds—
and developing mining claims. Office—
St., Tucson, Ariz. Underwriter—None.
Church
Ligjidemann (A. J.) & Hoverson Co.
Nov.§28 filed 112,500 shares of
common stock (par $1).
Pricf^r-To be supplied by amendment.
Underwriter—
Sills, Fairman & Harris, Inc., Chicago, 111. Proceeds—
To
eight selling stockholders.
Offering—Date indefinite.
it Lien? Oil Co. (5/13)
Aprir23 filed 400,000 shares of
common
stock
(no par).
PriceJ^To be supplied by amendment. Proceeds—From
sale!$f stock, together with funds from placement of
$15jpj&,000
be
lied
to
of debentures with
pay
for
an
insurance
construction of
new
write*— Blyth & Co., Inc., New York.
company, to
plant. Under¬
Volume 175
Number 5110
.
.
Loch-Lynn Gas Corp. (N. J.)
(letter of notification) 1,000 shares of common
stock (par $1).
Price—$100 per share.
Proceeds—For
working capital.
Office—15 Exchange Place, Jersey
March 5
City 2, N. J.
•
Lone
New
rate of one share for each eight
record about May 8 at
shares
Cement
plied by amendment.
held; rights to expire May 26. Price—To be sup¬
Proceeds—For construction pro¬
Corp. (4/28-5/2)
April 3 filed 154,209 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for expansion program. Underwrit¬
bidding.
ers—Hayden, Stone & Co. and Adamex Securities Corp.,
Beane, Kidder, Peabody & Co. and White, Weld & Co.
New York.
Underwriters—May be determined by competitive
Probable bidders: Blyth & Co., Inc. and Lehman
gram.
Brothers
Lynch,
Fenner
Pierce,
&
Harriman Ripley & Co., Inc. and Goldman,
(jointly). Bids—To be received up to noon
May 7 at 441 Stuart St., Boston 16, Mass.
(jointly);
Offering—Expected week of April 28.
Merrill
(jointly);
Sachs & Co.
it Mercast Corp., New York
:
^
April 10
(letter or noutication) 13,480 shares of common
(par 10 cents). Price—$5.25 per share. Proceeds—
To selling stockholders. Office—295 Madison Ave., New
York 17, N. Y. Underwriter—J. R. Williston & Co., New
(EDT)
on
New
stock
Jersey Bell Telephone Co. (5/6)
April 11 filed $20,000,000 of 32-year debentures due May
1, 1984. Proceeds—From sale of bonds and from sale of
York.
$50,000,000 of common stock to parent, American Tele¬
phone & Telegraph Co., will be used for new construc¬
tion. Underwriters
To be determined by competitive
April 18 (letter of notification) 2,000 shares of
stock
(par 10 cents).
To
selling stockholder.
&
a
Price—$5.25
common
share. Proceeds—
per
Underwriter—J. R.
Williston
—
Memtt-Chapman & Scott Corp.
13 filed 124,147 shares of common stock
(par
$12.50), being offered for subscription by common stock¬
holders of record April 10 on the basis of one share for
each four shares held.
Of any unsubscribed shares, em¬
officers, may purchase a maximum
of
10,000 shares; rights to expire April 28.
Price —
$21 per share. Proceeds—To reduce bank loans and for
working capital and other corporate purposes. Office—
17 Battery Place, New York 4, N. Y. Business—Industrial
ployees,
including
building, marine and heavy construction.
None.
Underwriter—
Statement effective April 2.
MetaB
Underwriter—D. A. Lomasney &
Co., New York.
9,744 shares of
stock.
Proceeds—For working
capital.
share.
per
common
Office—2700 Wickham Drive, Muskegon, Mich.
Underwriter—None.
Michigan Steel Casting Co., Detroit, Mich.
27 (letter of notification) 40,250 shares of com¬
mon
stock
(par $1) to be offered for subscription by
March
stockholders of record March 31.
Proceeds—For working capital.
Price—$5.25
per
share.
States Telephone & Telegraph Co.
March 7 filed 318,624 shares of capital stock, being of¬
fered for subscription by stockholders of record March
a
l-for-4
($100
basis; rights expire April 29.
Price—At
share). Proceeds—To repay advances from
Telephone & Telegraph Co., parent, which
per
American
owns
majority
a
(over 84.81%)
of present outstanding
stock. Underwriter—None. Statement effective March 26.
it Mutual Investment Fund,
Inc.,
New York
April 21 filed $1,200,000 periodic payment plan certifi¬
cates (DM); $3,000,000 periodic payment plan certificates
(DMN);
and $600,000 single payment plan certificates
Managers—Mutual Management Co., New York.
(DMP).
it Natiom-Wide Securities Co., Inc., New York
April 21 filed 200,000 shares of capital stock.
market.
Proceeds—For
investment.
Price—At
Distributor—Calvin
Bullock, New York.
stockholders in ratio of
one
new
common
share for each
10 shares of
preferred or common stock held. Price—$9
per share.
Proceeds—To acquire 305,000 shares of Na¬
tional Chlorophyll & Chemical Co. at $2 per share. Busi¬
ness—Manufacture
Lamar, Colo.
and
sale
of
alfalfa
meal.
Office—
Underwriter—None.
(par $1)
stockholders of National Alfalfa Dehydrating & Milling
Co. in ratio of one share of National Chlorophyll com¬
for each two
shares
of National
Alfalfa
preferred
or common presently held in conjunction with offer by
National Alfalfa company of its own stock.
National
Chlorophyll shares are to be offered for subscription
as
tional
part of
Alfalfa
a
unit
share
package consisting of one Na¬
$9 per share and five shares of
or
at
National
Chlorophyll stock at $2 per share, or a total
price per unit of $19. Proceeds—To purchase from Na¬
tional Alfalfa its existing chlorophyll extraction facil¬
ities and inventory and for construction of new extract¬
ing plant. Office—Lamar, Colo, Underwriter—None.
it National Fuel Gas Co. (5/20)
April 18 filed $18,000,000 sinking fund debentures due
1977.
Proceeds—To repay $11,000,000 bank loans and to
loan $7,000,000 to subsidiaries.
Underwriters—To be de¬
termined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.; The First Bos¬
ton
Corp.; White, Weld & Co.; Harriman Ripley & Co.,
Bids—To be opened on May 20.
it National Hotel Publishing Co.
April 18 (letter of notification) 300 shares of 6%
(no par) to be offered in units of 10 shares of preferred
one
share
of
610 chares
Price—$1,000
per
to
unit.
the total
common
issued +o Clavton L
common
are
Smythe.
stock.
Of
Office—179
W.
Washington St.,
—
first
one
Seattle Gas Co.,
per
Polian &
Proceeds
and
private placement of $12,500,mortgage bonds will be used to retire bonds
serial
notes and
for
Jersey Natural Gas Co.
working capital.
which
Price—At
par ($1 per share).
Proceeds—For exploration and de¬
velopment costs and working capital.
Underwriter500,000 shares are for account of company.
Mexico
Proceeds—To construct racing plant and
working capital. Underwriter—None, but Dr. Frank
Miller of Los Angeles, Calif., will be "engaged
sell the securities to the public.
Statement effective
Sonic
it New York State Electric & Gas Corp. (5/13)
April 23 filed 300,000 shares of common stock (no par).
be
supplied
construction.
by
amendment.
•
Proceeds—For
Corp.,
New York.
Minn.
each
(5/5)
filed
shares
103,185
of
riers, winding
writers
March
held
Resources of Canada
Fund, Inc.
April 11 filed 1.968,383 shares of capital stock (par one
Price—At market. Proceeds
For investment.
cent).
—
Distributors—Frank L. Valenta & Co., New York.
eral
of two
per
lins &
(par $10)
•
April
Parsons
Oil
Ltd.
—
Hemphill,
Price—
To
Co., Cleveland,
Ohio.
Part
Standard Coil Products Co.,
March 17 filed 486,858
holders of 85%
on
Standard
•
*
common
of General shares tender
their stock in
or
Factors
Corp.,
stock (par $1)
(letter of notification) 750 shares of capital
$10).
Price—At market (approximately
$16.37% per share). Proceeds—To J. J. Pike, the selling
common
(par
(par $1),
N. Y.
«
April 11 (letter of notification) $250,000 of 5% subordinated debentures due Dec. 31, 1957 and 10,000 shares of
Price—For
17
Inc.
shares of common stock
before May 14.
Dealer-Managers F.
Eberstadt & Co., Inc., and Hirsch & Co., both of New York.
exchange
it Republic Supply Co. of California
April
Co., New York.
being offered in exchange for common stock of General
Instrument Corp. on basis of four Standard shares for
each five General shares.
Offer will be consummated if
(par $5—
of shares are ex¬
wells. Business
Underwriters—W. E. Hutton & Co., Cin¬
writer—None.
Noyes,
Calgary, Alberta, Canada, and Cleveland, O.
Under¬
writers—Hayden, Stone & Co., New York; and T. H.
10
it Spencer Grean Fund, Inc., New York
April 21 filed 5,000 shares of common stock (par $100).
Price—At market. Proceeds — For investment. Under¬
Price—To be supplied by amendment. Pro¬
ceeds—To retire notes and develop oil lands.
Offices—
stock
(4/29)
acquire additional leases and to drill
—Oil and gas.
(4/30)
10 filed 350,000 shares of capital stock
&
Gas Co.
shares of common stock (par
cents), of which 330,000 shares are being sold by the
company and 170,000 shares by certain selling stockhold¬
ers.
Price—To be supplied by amendment. Proceeds—
Canadian).
Jones
Underwriter—None.
March 27 filed 500,000
Pittsburgh Coke, which owns an additional 61,109
The offer, which is on a 1.20-for-l basis, will ex¬
Dealer-Manager
& Co., New York.
shares*"3?
oversubscription privilege). Pricesupplied by amendment.
Proceeds—For new con-»
Southwest Natural
shares.
4.
Tex.
Union Gas Co., Dallas,
April 24 at rate of one share for each 10
struction.
being offered in exchange for 118,441 shares of Great
Lakes Steamship Co., Inc., common stock, held by others
Graham
plant
cinnati, O., and Craigmyle, Pinney &
June
debentures due
stock
shares of cumulative preferred
30,000
Southern
To be
share.
on
Dallas, Tex. (5/6)
Price—To be supplied by amendment. Pro¬
expansion.
Underwriter—Blair, Rol¬
Co., Inc., New York.
of record
Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.
142,129 shares of common stock (no par)
pire
Underwriters—E. L. Aaron &
then held (with an
March 28 filed
than
Ltd., Toronto
April 8 filed 166,706 shares of common stock (par $1)
to be offered for subscription by common stockhold^rs,
Each purchaser
warrant.
Price
(par $100).
New York.
•
and
ceeds—For
30,000 warrants to purchase 30,000
(warrants exercisable at $7.50
one
corporate purposes.
1972
stock
shares will receive
common
(par
filed
April 8 filed $5,000,000 of sinking fund
Proceeds—For working capital. Office—
Oklahoma City, Okla.
Underwriter—George F. Breeh,
$5
May 1.
15; rights to expire on
of April
Southern Union Gas Co.,
•
Corp.
(letter of notification) 60,000 shares of common
prior to April 1, 1954).
stock
National Corp., both of New York. State¬
ment effective Aug. 23, 1951.
Finance
on or
of common
Co. and Empire
shares held; rights to expire on May 8.
Price—
$48.50 per share.
Proceeds — For expansion program.
Underwriter—Morgan Stanley & Co., New York.
share
shares
417,719
(amendment) 384,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For gen¬
seven
per
filed
South State Uranium Mines,
•
being offered for subscription by common stockholders
of record April 22 at rate of one new share for each
and
as
April 4
expected to become effective today (4/24).
common
26
Inc., Columbia, S.C.
Electric & Gas Co.
York.
stock, remaining 80,000 shares to be sold to
one officer and two other companies.
Price—$1,030 per
unit and 80,000 shares at $1 per share.
Proceeds—For
general corporate purposes. Office—Dallas, Texas. Un¬
derwriter—Dominick & Dominick, New York. Statement
of
Dickson
supplied by amendment. Proceeds — For new
construction. Underwriter—Kidder, Peabody & Co., New
of
(par $1)
expire on
—To be
1, 1967 and 380,000 shares of common stock (par
$1). The debentures and 300,000 shares of stock will be
publicly offered in units of $1,000 debentures and 30
shares
to
being first offered for subscription by common
stockholders at rate of one share for each five shares
• Oil & Gas
Property Management, Inc. (4/25)
April 4 filed $10,000,000 of 4% income debentures due
stock
expected
$4.50)
Co., Minneapolis, Minn., and Irving J. Rice & Co., Inc.,
St. Paul, Minn.
5
rights
and other textile specialties. Under¬
& Co., Charlotte, N. C., and
cores,
S.
R.
Carolina
South
it Northwest Plastics, Inc., St. Paul, Minn.
April 18 (letter of notification) 2,100 shares of common
stock (par $2.50). Price—$8.75 per share. Proceeds—To
two selling stockholders. Underwriters—M. H. Bishop &
Petroleum
—
G. H. Crawford Co.,
Blyth & Co., Inc., New York.
Feb.
held";
Price—To be supplied by amendment (prob¬
ably around $16.50 per share).
Proceeds—For working
capital.
Business—Manufacture and sale of paper car¬
convertible
of May 5; rights to expire on May 20. Price—To be sup¬
plied by amendment. Proceeds—For general corporate
purposes.
Underwriters — The First Boston Corp. and
shares
shares
two
May 15.
preferred
stock (par $50) to be offered to common stockholders at
^rate of one preferred share for each 15 shares held as
10
(5/5)
Co., Hartsville, S. C.
Products
Sonoco
April 15 filed 150,000 shares of common stock (par $5)
to be offered for subscription by stockholders of record
March 21 at rate of "slightly in excess of one share for
Underwriter—The First Boston
it Northwest Bancorporation, Minneapolis,
April
Corp., Boston, Mass.
Research
April 8 (letter of notification) 5,000 shares of common
stock (no'par).
Price—$20 per share. Proceeds—For
working capital. Office—15 Chardon St., Boston, Mass.
Underwriter—F. S. Emery & Co., Inc., Boston, Mass.
April 5.
new
Securities Ltd.
Northeastern
Porter
Price—To
'V
Mines, Ltd., Toronto, Canada
March 17 filed 600,000 shares of common stock of
Signal
Jockey Club, Albuquerque, N. M.
March 17 filed 1,255 shares of common stock (par $1,000).
to
Co., Omaha, Neb.
Underwriter—None.
Name—New
Underwriter—Allen & Co., New
York.
New
21
it Seneca Shopping Plaza, Inc.
April 16 (letter of notification) 100,000 shares of capital
stock (par $1), of which 50,000 shares are to be offered
in payment of site, etc., and balance offered to public.
Price—$3 per share.
Proceeds—To purchase plot for
erection of a Plaza. Office—298 Main St., Buffalo 2, N. Y^
and one
unit.
Seattle, Wash.
(letter of notification) 10,000 shares of com¬
mon stock
(par $10). Price—$13.62V2 per share. Pro¬
ceeds—For operating expenses.
Underwriter — Smitk,
share of
stock
units of
common
Probably $50
—From sale of stock
000
shares of
equipment. Office—Carton Hill, N. J. Underwriter
Offering—Expected to be placed privately.
and
pre¬
pected to be offered for sale in Canada.
Chicago 2, 111.
Natural!
offered in
to be
stock, two
Price
Rainbow
pre¬
ferred stock (par $100) and 1,000 shares of common stock
stock,
stock)
preferred
warrant.
28.
—None.
(par $20), 212,000 shares of common stock
(par $10) and 106,000 common stock purchase warrants
(each warrant entitling holder to purchase one share of
Pennsylvania Salt Manufacturing Co.
April 3 filed 155,349 shares of common stock
to be offered for subscription by preferred and common
and
Inc.;
ferred stock
common
Statement effective Jan.
store.
March
New Jersey Natural Gas Co. (4/28-5/2)
31 filed 106,000 shares of 6% cumulative
(J. W.)
it Royce Chemical Co. (N. J.)
April 18 (letter of notification) 1,567 shares of capital
stock. Price—$100 per share. Proceeds—For machinery
•
National Chlorophyll & Chemical Co.
April 7 filed 349,000 shares of common stock
Inc.
Co., Los Angeles, Calif.
Jan. 4 filed 100,000 shares of capital stock to be offered
on a pro rata basis to stockholders of record Nov. 23,
1951 (approximately 33 in number) for a 30-day period,
with an oversubscription privilege. Unsubscribed shares
to be sold privately to individuals selected by company.
Price—At par ($10 per share). Underwriter—None. Pro¬
ceeds — For working capital. Business r— Department
May
National' Alfalfa Dehydrating & Milling Co.
April 7 filed 69,800 shares of common stock (par $1) to
be offered for subscription by preferred and common
only
Robinson
Bids—To
March
•*r'
writer—None.
Underwriter—None.
Mountain
on
Co.; Shields & Co.; The First Boston Corp.
up to 11 a.m. (EDT) on May 6.
for
April 18 (letter of notification)
mon
Co.
Ridley Mines Holding Co., Grafton, N. D.
15 filed 100,000 shares of common stock. Price—At
par ($5 per share). Proceeds—For exploration and other
mining purposes. Business — Uranium mining. Under¬
Feb.
Price—At par.
it Michigan Spring Co.
Price—$13.50
•
and
Hydrides, Inc., Beverly, Mass. (4/29)
March 21 filed 100,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To en¬
large
research
facilities
and
for
new
construction.
28
Stuart &
Los An¬
Underwriter—None.
•
be received
March
par
Halsey,
geles 54, Calif.
Morgan Stanley & Co.; White, Weld & Co.; Kuhn, Loeb
Co.
&
•
Probable bidders:
bidding.
Office—2600 South Eastland Ave.,
stockholder.
(5/7)
England Electric System
April 9 filed 920,573 shares of common stock (par $1)
to be offered for subscription by common stockholders of
Underwriter—None.
Star
59
(1751)
The Commercial and Financial Chronicle
.
each
$1,000
share, $3.50.
offered initially to stockholders.
debenture, $950; and for each
Proceeds — For working capital.
Continued
on
page
60
BO
(1752)
The Commercial and Financial Chronicle
Continued
jrom
if Washington Oil Corp., Aberdeen, Wash.
April 15 (letter of notification) 1,975 shares of
59
page
Office—270 Madison Avenue, New York
derwriter—None.
16, N. Y.
stock.
Un¬
Price
Superior Plywood Corp., Crescent City, Calif.
March 17 filed 3,600 shares of class A voting common
stock (par $10), 300 shares of class B non-voting com¬
mon stock
(par $5,000) and 9,000 shares of 6% cumulative preferred stock (par $100), of which 1,500 class
Bldg., Aberdeen, Wash.
A
"X
in
at
Arkansas
& Pancoast and Russ &
of
$5,050
and
five
300
shares
unit
per
class
of
B
shares
class
A
are
and
to
one
be
of
offered
class
B
H.
•
preferred stock
in partial payment); 700 class A shares to be offered
in exchange for standard common stock on a share for
share basis; 1.400 class A shares to be sold to manage¬
ment group
(letter of notification) 2,000 shares of common
(no par). Price—$20 per share. Proceeds—To W.
Thompson, the selling stockholder.
new
standard stock. Proceeds—To purchase site for
rate purposes.
plywood
plant, to repay loan and for working capital. Business—
Operator of green veneer plant. Underwriter—None.
stock
mon
(par
1
mately 55 cents
cent).
Price—At
market
which
com->
stockholders
(approxi¬
April 17 filed 20,000 shares of
common
stock.
Price—At
ing
April 18 filed $30,510,000 of participations under the Em¬
ployees Savings Plan together with 526,034 shares of
capital stock (par $25) which may be required by the
Trustee
under
Texas Electric Service Co., Ft. Worth, Tex. (5/6)
26 filed $8,000,000 of first mortgage bonds due
$5,000,000 of sinking fund debentures due 1971.
To repay short-term borowings and for new
—
construction.
Underwriters—To be determined by com¬
petitive bidding. Probable bidders Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Lehman Brothers and Blyth &
Co., Inc. (jointly); Salomon Bros. & Hutzler; Harriman
Ripley & Co., Inc.; Union Securities Corp.; Hemphill,
Noyes, Graham, Parsons & Co. and Drexel & Co. (joint¬
ly); Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane
(jointly); The First Boston Corp. Bids
—Expected to be received at 11:30 a.m. (EDT) on May 6.
common
•
Wisconsin
Struthers & Co., New York.
Transgulf Corp., Houston, Tex.
April 10 (letter of notification) 23,000 shares of capital
(par
10
cents). Price—$1 per share. Proceeds—
working capital. Office—1 Main St., Houston, Tex.
Underwriter—Qearhart, Kinnard & Otis, Inc., New York.
For
Tri-State
Jan.
21
filed
20,000 shares of
common
stock
(no
$100)
to
be
common
new
sold
in
shares.
equipment
None.
par)
cumulative preferred stock (par
units of one preferred share and
Price—$200
and
working
unit.
per
Proceeds—For
capital.
Underwriter—
Statement effective March 25.
Union Electric Co. of Missouri
March 27 filed $30,000,000 of first
(4/29)
to
up
60
noon
(EDT)
on
April
29
at
company's
Broadway, New York 4, N. Y.
office,
if Union Oil Co.
of California (5/7)
April 17 filed $35,000,000 of convertible debentures
due
1972. Price—To be
supplied by amendment. Proceeds—
For construction
program.
Co.
Inc., New York.
U.
Underwriter—Dillon, Read
&
Underwriters—For
share.
(5/5)
bonds,
to
be
determined
Boston
Ripley
May.
Corp.; Union Securities Corp. and Harriman
& Co., Inc. (jointly).
Offering—Expected in
Electric Power Co.
April 9 filed 702,486 shares of
to be offered for
rate of
one
(par $10)
stockholders at
shares held.
Price—To
Proceeds—For construction
common
share for each five
Underwriter—None.
Worcester County Electric Co.
(5/13)
15 filed $4,000,00 first mortgage
April
bonds, series C,
1982.
Proceeds—To repay bank loans and for new
construction.
Underwriter—To be determined by com¬
petitive bidding. Probable underwriters:
Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co. and
Union Securities Corp.
(jointly); The First Boston Corp.; Merrill Lynch, Pierce
Fenner & Beane.
Bids—Expected to be received up to
noon
(EDT) on May 13 at 441 Stuart
Street, Boston
16, Mass.
Zeigler Coal & Coke Co., Chicago, III.
27 filed 66,125 shares of
common
stock, to be
March
offered for subscription by common
stockholders at rate
one new share for each
five shares held. Price—At
of
par^ ($10 per share).
Proceeds—To
bank
repay
loans.
Business—Owner and lessor of coal
properties. Office—
21 E. Van Buren
St., Chicago 5, 111. Underwirter—None.
Statement effective April 16.
Office—47
West
South
Utah.
as
an
insurance
Piospective Offerings
Jan. 4, Don T.
McKone,
sideration
financing.
was
announced that
con¬
On Feb. 18, stockholders voted to increase the
authorized
common stock to
and to issue 37,500 shares as
1,000,000 from 750,000 shares,
a
5% stock dividend. Under¬
writer—Watling Lerchen & Co., Detroit, Mich.
Pro¬
ceeds—For additional
working capital.
• American
Telephone & Telegraph Co.
April 16 stockholders approved a
proposal to authorize
a
new
issue of not to exceed
$550,000,000 of
lative preferred
notification) 2,000 shares
stock
to
be
of 4%
cumu¬
sold to
employees. Price—
share). Proceeds
To purchase new
equipment. Address—R. R. No.
5, Warsaw, Ind. Under¬
writer—None.
At par
($25
per
&
Co.; White, Weld & Co. and
(jointly); The First Boston Corp.
Boston Edison Co.
was announced
company plans to spend $56,000,000 in 1952, 1953 and 1954 for construction program,
of which
of
$32,000,000 would have to be raised from sale
securities.
is also expected to fund bank loans
$8,500,000 by June 30. Probable bidders
for bonds: Halsey, Stuart & Co.
Inc.; White, Weld & Co.
and Goldman, Sachs & Co.
(jointly); Lehman Brothers;
The First Boston Corp.; Harriman Ripley &
Co., Inc.
It
which will total
California-Pacific
Feb. 29 it
Utilities
Co.
was
reported company expects to offer about
debentures within the next two months.
$2,000,000 of
Proceeds will be used to pay for additions and improve¬
to
property.
Traditional Underwriters — First
Central Hudson Gas & Electric
Corp.
March 25 stockholders voted to increase authorized
pre¬
ferred stock (par $100) from
150,000 shares
(130,300
shares outstanding) to 225,000 shares to enable
company
to meet future capital requirements. There are no im¬
mediate plans for sale of any additional
preferred stock.
March 4 it was reported
company plans the sale this
Fall of about $5,500,000 first
mortgage bonds. Latest
bond
financing was done privately
through Kidder, Peabody & Co.
annually from June 1, 1953 to 1967, inclusive. Probable
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Bear, Stearns & Co.
bidders:
•
Chicago & Western Indiana
from
the
standpoint
of
quality; others think they
compromise
they're faced with
At
maintained
trust
5, the ICC approved
general
and
collateral
due
a
when
rush
while
meeting
specialists
in
financial,
and
handle
legal printing,
design, printing
(both letterpress and offset),
binding, mailing.
Our service
SORG
is
complete.
on
ST., NEW YORK 38, N.Y.
—
{financial,
Heyal,Hwifioiatc SfiUnfon
was
increasing
shares
announced stockholders will vote May 13
authorized common stock from 400,000
(par $1) to 2,000,000 shares (par 33% cents) in
provide for a 3-for-l split-up of the present
outstanding 283,729 shares of common stock and to per¬
order
to
mit the company to take
which may develop for
the issuance of
commori
advantage of any opportunities
property acquisitions requiring
shares.
Traditional Underwriter
—Lee Higginson Corp., New York.
Columbus & Southern Ohio Electric Co.
was
announced company expects to enter the
financing market about the
with 150,000 to 200,000 shares of
ceeds—For construction
middle
new common
program.
of
1952
stock. Pro¬
Underwriter—Dillon
Co., Inc., New York.
Connecticut Light & Power Co.
March 1 it
was
announced
that
be
that it is presently estimated
approximately $11,000,000 of additional capital will
required during the latter half of 1952.
Consolidated Gas, Electric
Light & Power Co. of
Baltimore
Dec. 24 it
was
stated that company
plans to issue and sell
and
cient to raise
bonds during 1952 to an amount suffi¬
approximately $22,000,000. Underwriters—
For bonds to be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co. and The First Boston
Corp.
(jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons
(jointly).
The First Boston Corp., Alex. Brown &
Sons and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred
stock sale.
PRINTING CO., Inc.
811 SOUTH
$64,239,000
bonds
May 1, 1982; without competitive bidding. Proceeds
maturity $49,988,000 of 4% non-callable con¬
April 14 it
job.
deadline.
corporate
of
mortgage
—To pay at
both stocks
we
(5/8)
issuance
of
Sorg, quality is consistently
your
RR.
April
Read &
to
1951
Bids will be received by the
company up to noon (CDT)
May 7 for the purchase from it of $990,000 equipment
trust certificates to be dated June
1, 1952, and to mature
Some people look at
printing
have
March,
on
convertible
No matter how you look at
it...
only
in
if Chicago, St. Paul, Minneapolis &
Omaha Ry. (5/7)
permanent
car¬
Trucking Co., Inc.
Stanley
March 28 it
March 7 it
As
^ Warsaw (Ind.)
April 16 (letter of
Morgan
Union Securities Corp.
if Citizens Utilities Co.
Chairman,
being given to the possibility of equity
Temple, Salt Lake City 1,
Victoreen Instrument
Co., Cleveland, Ohio
March 28 filed 90,000 shares of
common stock
(par $1),
of which 60,000 shares
will be
publicly offered and 30,©00 shares to three
non-selling stockholders. Price—To
be supplied
by amendment. Proceeds—To certain
selling
stockholders. Underwriters—Barrett
Herrick & Co. Inc.,
New York, and A. H.
Vogel & Co., Detroit, Mich.
ly);
solidated first mortgage bonds due
July 1, 1952, and to
retire outstanding $11,739,000 first and ref.
mtge. bonds
and the remainder used for
capital improvements.
Un¬
derwriters—The First Boston Corp. and
Halsey, Stuart
& Co. Inc.
Aeroquip Corp.
subscription. Price—$20 per share to stockhold¬
approximately $25.75 per share to public. Proceeds
enlarge company's operations
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
California Co., Inc., San Francisco, Calif.
stock
common
subscription by
supplied by amendment.
due
construction
company's
next three years calls for the
ments
Wisconsin
be
that
announced
was
in 1952. Underwriters—For bonds to be decided by com¬
shares
ler (jointly); Equitable
Securities Corp.; Merrill
Lynch,
Pierce, Fenner & Beane; Glore, Forgan & Co.; The First
for
rier.
14
per
it
expenditure
$247,000,000 of which about $81,700,000 will be spent
of
of
by
Probable bidders: Halsey, Stuart &
and Salomon Bros. & Hutz¬
if Utah Home Fire Insurance Co.
April 15 (letter of notification)
10,000 shares of common
stock (par $10) to be offered
first to common stockhold¬
ers
Co.)
Statement effective Mar. 21.
Electric Power Co.
broker.
ers;
Electric
S.
Manganese Corp., Phoenix, Ariz.
April 1 (letter of notification) 17,500 shares of
common
"Stock (par $1).
Price—$2 per share. Proceeds—To Green¬
field & Co., et al. Office—610
Heard Bldg.,
Phoenix, Ariz.
Underwriter—None, but Greenfield & Co. will act as
—To
Penn
Traditional Underwriter—
Telephone Co. of Pennsylvania
2
program for
by
Inc.; Lehman Brothers
mortgage and col¬
lateral trust bonds, due 1982. Proceeds—To
retire prom¬
issory notes and for new construction. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First
Boston.; Lehman
Brothers; Kuhn, Loeb & Co. and Harriman Ripley & Co.
Inc. (jointly); White, Weld & Co.
and Shields & Co.
(jointly); Dillon, Read & Co. Inc.; Blyth & Co., Inc. and
Union Securities Corp.
(jointly). Bids—To be received
Bell
Jan.
stock, proposes to purchase all shares not
competitive bidding.
Co.
Telecasting Corp., Chattanooga, Tenn.
and 2,000 shares of 5%
10
subscription
April 9 filed $12,500,000 of first mortgage bonds due 1982.
repay bank loans and for new construc¬
program.
Torrington Water Co., Torrington, Conn.
March 18 (letter of notification) 3,174 shares of
capital
stock (par $25). Price—At
approximately $27 per share.
Proceeds—To Muriel Alvord, et al.
Underwriter—Wood,
stock
West
for
Proceeds—To
the Plan.
March
1982 and
than
subscribed by public holders.
tion.
Proceeds
(other
offered
are
presently announced.
Smith, Barney & Co., New York.
Power Co.,
Pittsburgh, Pa.
221,786 shares of no par common stock of
shares
be
not
—
Proceeds—For investment. Underwriter—None.
if Texas Co.
share.
Proceeds—For general corpo¬
Office—319 West Market St., Lima, Ohio.
Proceeds—To pay bank loans and for
property additions
and improvements. Underwriters
None. West Penn
Electric Co., owner of
approximately 94.6% of outstand¬
^Templeton & Liddell Fund, Inc., Englewood, N. J.
market.
Refining Co.
21, Robert H. Colley, President, said in the com¬
pany's annual report that "the time may be coming
when additional financing will be required to supple¬
ment retained earnings available for capital expend¬
itures." The amount and timing of such financing can¬
per
record April 4, at rate of one share for
each
held; rights to expire on April 28. Price—$37
share. Proceeds—For general cor¬
Underwriter—Tellier & Co.
per
porate purposes.
11,898
Probable bid¬
competitive bidding.
by
Halsey,
Atlantic
West Penn
28 filed
Power
March
Underwriter—None.
Feb.
to
Brothers and Stone & Webster Securities Corp. (jointly);
Union Securities Corp.; Merrill Lynch, Pierce, Fenner
share for each 16 shares held; rights
expire May 5.
Price—$11.50
offered
& Beane; Blyth & Co., Inc.
Co., Lima, Ohio
(letter of notification) 19,753 shares of com¬
mon
stock (par $5) being offered for
subscription by
common stockholders of record
April 1 at rate of one
of Superior company; and all of 9,000 shares
stock for cash at par or in exchange for
if Television & Radar Corp., L. I. City, N. Y.
April 18 (letter of notification) 300,000 shares of
Underwriters—
25
of preferred
was
Stuart & Co. Inc.; Equitable Securities
Corp., and Central Republic Co. (Inc.) (jointly); Lehman
West Ohio Gas
March
debentures
of
1952
was
determined
ders:
McColloch, Ft. Worth, Tex.; Dewar, Roberston
Co., both of San Antonio, Tex.;
Laird & Co., Wilmington, Del.
and
(subscribers must surrender $2,500 par
value of Standard Veneer & Timber Co.
be
25
stock
Thursday, April 24,
.
& Light Co.
reported company plans sale in October
of $12,000,000 first mortgage bonds.
Underwriters—To
March 14 it
Underwriter—None.
Welex Jet Services, Inc.
Jan.
issue
Last
.
stockholders at par without underwriting.
Barron
shares
units
*
debentures.
common
At par
($100 per share). Proceeds—For
moving oil drilling rig and equipment. Office—535 Finch
—
,
Proceeds—For
expected in March
•
or
new
construction.
Offering-
April.
Consolidated Natural Gas Co..
April 18 company applied to SEC for approval of certain
charter
amendments
to
May 20, providing for
stock
from
3,274,031
be
voted upon by stockholders
increase of authorized capital
shares to 3,683,285 shares.
It is
an
Volume 175
Number 5110
.
The Commercial and Financial Chronicle
.
.
(1753)
planned to offer the additional 409,254 shares for sub¬
scription by stockholders at rate of one new share for
each eight shares held.
Price—To be filed by amend¬
ment.
Proceeds
To purchase securities of operating
—
subsidiaries, which will use the funds for construction
and other purposes. Underwriter—None.
Cooper-Bessemer
March 22 it
on increasing authorized common stock (par $5) from
500,000 shares (476,578 shares outstanding) to 1,000,000
shares
take
to
vide additional stock for future
financing of the corpora¬
tion's expansion program. No plan
of any additional common shares is
sidered
by
dividends and pro¬
of future stock
care
involving the issuing
presently being con¬
the directors.
April 30 will
vote Oil increasing the authorized indebtedness from $5,000,000 to $15,000,000 (none presently outstanding) and
the authorized preferred stock (par $50) to 137,727 shares
from 37,727 shares, which are all outstanding. Traditional
on
Underwriter—Riter & Co., New York.
•
the
Co., Chicago, 111.
22 stockholders approved
authorized
stock
proposal
a
to
increase
from
and the balance for expansion program and working
capital.
Underwriters — Morgan Stanley
& Co. and
Clark, Dodge & Co., New York.
Worth
Traditional Un¬
Co. and Mitchum,
expansion program.
Kidder,
Peabody
&
Tully & Co.
Crown
Cork & Seal
April 8 it
was
Co., Inc.
announced stockholders will vote April 24
increasing authorized common stock from 1,300,000
shares to 2,000,000 shares.
There are no' plans to sell
on
additional shares at this time.
any
issue
of
300,000 shares of preferred
stock)
common
each five
the basis of
on
common
shares
shares held.
an
stock
authorized
(par $50), of
(to be convertible into
one
•
General
Fuse
Co.,
preferred
total of
50,000 shares
General
•
announced company
recently offered to
were
($5
General
it
6
common
and
proposal to authorize issuance of
on
April
common
7
rejected
financing. Underwriters—To be de¬
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan, & Co.; Blyth
& Co., Inc. and Lazard Freres & Co.
(jointly); The First
Boston Corp.; White, Weld & Co. and Shields &
Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
it
stock without
Co., Inc.
preferred share for
Price—To be announced
later.
Proceeds—From sale of stock, plus funds to be
received from insurance company on a $15,000,000 longterm loan to mature May 1, 1967, for refunding of $4,300,000 outstanding 3 xk % notes and for expansion pro¬
gram.
Underwriters—Alex. Brown & Sons, Baltimore,
For
construction.
new
Co.
will
Union
Securities
Bros.
&
and Equitable
(jointly);
Corp.
Bids—Expected
com¬
stock from
on
1,000,000 shares (approximately 938,000
shares outstanding) to 1,250,000 shares to provide addi¬
tional stock for future expansion needs. Traditional Un¬
ment trust
derwriter—McCormick &
stock from 300,000
Drewrys Ltd., U. S. A., Inc.
April 4 it was reported company
time
may
later this month
consider possible financing. Underwriters—Probably A.
C. Allyn & Co., Inc., Chicago, and Bear, Stearns & Co.,
New York.
El
Paso Electric
April
4
company
issue up
construction
Proceeds would be
pending a permanent
financing program planned in 1953.
April 8 stockholders increased authorized
common
stock
$550,000 shares to 750,000 shares and voted to
change the limitation of the unsecured indebtedness
10%
to 20%.
New
financing may be necessary in
company's plans to spend in the next
three years about $14,000,000 for new facilities.
writers
Probably The First Boston
Corp.;
—
G.
H.
Elliott Co.
announced stockholders will vote May 8
creating an issue of 130,000 shares of 5% convertible
on
was
preferred stock (par $50) of which 120,000 shares would
be initially offered. Underwriter — F. Eberstadt &
Co.,
Inc., New York.
First
March
National
10
of
Portland
be
11
Power
it was
necessary
program
and
it is
Underwriter—None.
Corp.
announced
to
which
that additional financing will
complete the company's construction
is expected to cost about $28,000,000
contemplated that
obtained from the sale of
new
capital needed will be
common
stock and first mort¬
bonds.
Company has borrowed $4,000,000 under a
bank credit recently arranged!, Miich provides for shortgage
term bank
vious bond
may
be
Peabody
borrowings of not more than $10,000,000. Pre¬
financing was done privately. Common stock
offered to
8
it
common
& Co. and
Merrill
Beane acting as agents.
dividends
and
the
giving of stock
Co., also of Cincinnati.
construction.
company
Underwriters—To be
determined
by
Probable bidders: Halsey, Stuart
Inc.; Coffin & Burr, Inc.; The First Boston Corp.;
Kidder, Peabody & Co.; Union Securities Corp.; Equita¬
ble
Securities Corp.; Blyth & Co., Inc.; Kuhn, Loeb &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Salomon
Bros. & Hutzler and Drexel & Co. (jointly).
Bids—Ex¬
pected to be opened on
Idaho
Power
stockholders, with Kidder,
Lynch, Pierce, Fenner &
about June 24.
or
President, announced that the
com¬
pany's present plans consist of the sale this summer of
about 225,000 additional shares of common stock (par
$20), but no preferred stock. Price—At a minimum of
$35 per share net to company. Underwriters — Latest
stock
financing in April, 1949, was handled by
Blyth & Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and for
common
Illinois
April 9 it
program.
Bell
was
(EST)
a.m.
June 10.
on
Telephone Co.
common
April
was
or
it Lone Star Gas Co.
April 1 the FPC authorized the
tional properties at a cost of
additional
69.5
$4,010,200.
in
1952
miles
of
company
to acquire addi¬
$5,598,129 and to build
transmission
line
at
cost
a
an
of
It is also planned to spend about $31,000,000
additions to plant.
Previous financing was
for
privately.
Long Island Lighting Co.
March 5 it
announced company plans to finance in
$41,000,000 construction program by the
sale of $35,000,000 of new securities. Underwriters—For
any common stock, may be Blyth & Co., Inc. and The
First Boston Corp. (jointly); for any
preferred, W. C.
Langley & Co., and for any bonds to be determined by
competitive bidding, with the following probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and
The First Boston Corp.
(jointly); W. C. Langley & Co.;
Smith, Barney & Co.
part
its
was
1952
Exploration Corp.
April 12 it
May 5
500,000
No financing presently planned. No
involved in offer to common stock¬
on
announced stockholders will vote
was
increasing the authorized capital stock
to
600,000 shares.
underwriting was
holders last
from
October.
McCarthy
(Glenn
H.), Inc., Houston, Tex.
reported early registration is expected
10,000,000 shares of common stock. Price—To be sup¬
plied by amendment (probably at $2 per share). Under¬
March 18 it
was
of
writer—B. V. Christie & Co., Houston, Texas.
(7/1)
Metals
announced company intends to offer 682,-
454 shares of its
to 10:30
up
ic Maracaibo Oil
Co.
Feb. 27 T. E. Roach,
stock
on
reported company plans to issue and sell
May $12,000,000 30-year first mortgage bonds,
series D. Underwriters—To be determined by
competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and White, Weld & Co^
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly).
in
done
plans to issue and
sell $7,000,000 of first mortgage bonds.
Proceeds—For
new
and
Dec. 10 it
(6/24)
announced
was
(4/30)
each five shares held; rights to expire on May 29.
Unsubscribed shares would be purchased by Transamerica Corp., which owns a controlling stock interest in
the bank.
Price—$30 per share.
Proceeds—To increase
Florida
Feb.
approved
for
capital and surplus.
stock
Gulf Power Co.
construction
Bank
stockholders
sale of 200,000 addi¬
tional shares of common stock (par $12.50) to common
stockholders of record April 30 at rate of one new share
Jan.
time
to
rights or warrants to present stockholders. Underwriters
—May include Westheimer & Co., Cincinnati, O. Previ¬
ous public financing handled by W. E. Hutton & Co. and
Under¬
Walker & Co.
April 11 it
common
& Co.
from
connection with the
authorized
competitive bidding.
it Empire District Electric Co.
from
increased
shares (par $5) to 600,000 shares (par
$7), placing the company'in a position to consider from
authority to
1953.
program
Co., Chicago, 111.
Co.
stockholders
(Texas)
mature not later than Dec. 31,
to
26
W. D. Gradison &
Co.
applied to the FPC for
to $2,500,000 in unsecured promissory notes to
applied
Globe-Wernicke
March
Corp. Probable bidders for stock: Union Securities Corp.;
Brothers; Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); The First Boston Corp. Registration—Expected
on April 30.
Bids—Tentatively expected on bonds up to
Kentucky Utilities Co.
April 7 stockholders voted to increase authorized
May 1 for the purchase from it of $4,440,000 equip¬
certificates, series R, to be dated June 1, 1952,
to mature semi-annually to and including June
1,
1967. Probable bidders: Halsey, Stuart & Co.
Inc.; Salo¬
mon Bros. &
Hutzler; Bear, Stearns & Co.
Co.
Lehman
noon
mon
and
construction.
new
Electric
Stuart & Co. Inc.; Lehman Brothers; Union
Webster Securities Corp.
(jointly); Glore, Forgan & Co. and Goldman, Sachs &
Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co.
(jointly); The First Boston
Inc.
Md., and Kidder, Peabody & Co., New York.
Bids will be received by the company up to 1 p.m. (CDT)
Gas &
Securities Corp. and Stone &
Securities
it Denver & Rio Grande Western RR.
(5/1)
Corp.
Halsey,
Hutzler
(jointly); Harriman Ripley & Co. Inc.
July 8.
Fibres,
Securities
on a reported $12,000,000 in bonds and 200,000
of common stock. Probable bidders for bonds:
shares
on
Glass
Union
forming
Underwriters—To be determined
Corp.
and
in the next few months, but the amount is still un¬
decided. Investment groups had been said to have been
company
Salomon
and
Hutzler
(6/10)
29, Murray Gill, President, announced that company
probably bring an offering of securities to market
Feb.
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Shields
&
&
Proceeds—For
Kansas
(7/8)
announced
was
competitive
(jointly); Equitable Securities Corp.; Lehman Brothers
and Bear, Stearns & Co.
(jointly); Harriman Ripley &
stockholders.
8
by
Bros.
omon
a
requiring preemptive rights. Underwriters—If stock is
sold at competitive bidding, probable bidders
may in¬
clude:
Lehman Brothers; The First Boston Corp.
In
July, 1951, Merrill Lynch, Pierce, Fenner & Beane acted
as
clearing agent for an offering of common stock to
Georgia Power Co.
Under¬
stock
common
termined
com¬
approximately 530,000 additional shares
Stockholders
for April 25.
Power &
Kansas City Power & Light Co.
4
company
announced
that
it
plans to issue
and sell in 1952 about
$12,000,000 principal amount first
mortgage bonds (this is in addition to present preferred
Utilities Corp.
stock.
Iowa
Jan.
reported the corporation is expected to
summer
common
or
Iowa Power &
& Co. (jointly); Smith,
Barney & Co.; Lehman Brothers;
White, Weld & Co.; The First Boston Corp.; Kidder, Pea¬
body & Co. Bids—Expected to be received on
May 21.
share).
per
exchange for stock of another
Public
was
sell
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; W. CL
Langley & Co., Union Securities Corp. and Glore, Forgaa
pany.
Feb.
and
ders:
A
Equipment Corp,
was
announced
stockholders
will vote
increasing authorized common stock* from
1,000,000 shares to 1,500,000 shares and authorized pre¬
ferred stock (par $100) from 120,000 shares to
150,000
shares. Of the increase, it is reported company is con¬
sidering issuance of 10,000 preferred shares and 45,000
in
issue
To be determined
con¬
it
shares
to
Light Co. (5/21)
April 18 company asked FPC for
authority to issue $10,000,000 of first mortgage bonds due 1982. Underwriters—
South River, N. J.
on
common
expects
writer—Smith, Barney & Co., New York.
Precision
31
bank
Registration—Tentatively scheduled
,
stock with several underwriters.
stockholders at par
reported
was
Light Co. (5/14)
18 company sought FPC permission to issue
ap—r
proximately 227,000 shares of common stock (par
$10)
to stockholders of record about
May 14 at rate of one
share for each seven shares
held; rights to expire May 28.
City Ry.
discussing the marketing of unsubscribed 5Vz%
vertible
it
April
Denver
plans issuance and
sale of $20,000,000 of first mortgage bonds.
Proceeds—
to initially offer and issue to com¬
stockholders 128,533
mon
Lynch, Pierce, Fenner
Salomon Bros. & Hutzler.
Feb.
it Davison Chemical Corp.
April 17 stockholders approved creation of
which it is proposed
program.
on
sell this
—
&
5
$50,000,000 to $100,000,000 additional bonds in April
May.
25 it was announced stockholders will vote May
approving issuance of $17,000,000 of 30-year first
mortgage bonds. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; The First Boston Corp.;
27
of
finance
Feb.
$100), to be sold from time
the company's construction
March
it Creameries of America, Inc.
derwriters
International Bank for Reconstruction and
Development ("World Bank")
Beane, New York.
Fort
April 14, G. S. McKenzie, President, stated that the com¬
pany may do some long-term borrowing in about two
months to
Light Co.
Traditional Underwriter—Merrill
March
3,000,000 shares to
3,500,000.
It is planned to issue and sell $12,000,000 of
securities and use the proceeds to retire $4,000,000 bank
loans, $3,000,000 for investment in Canadian subsidiary
common
time to finance
April 22
Crane
April
to
is
announced stockholders
was
&
announced stockholders will vote May 12
approving the creation of an issue of up to 350,000
Jan. 28 Nelson O. Burt, President,
Copperweld Steel Co.
March 3 it
Power
was
shares of preferred stock (par
April
28
Florida
on
&
Corp.
announced stockholders will vote
was
•
April 16 it
61
stock to shareholders for sub¬
&
March 24 it
Chemicals
was
Corp., Dallas, Tex. (5/15)
reported company plans registration of
scription
162,500 shares of
common
per
To
by
on or before July 1, 1952. Price—At par ($100
share). Proceeds—To repay advances from American
Telephone & Telegraph Co. (owner of 99.31% of Illinois
Bell stock).
•
stock (par 10 cents). Price—•
amendment
(expected at $3 per
Proceeds—For new mill and equipment and
supplied
share).
working
Underwriter—None.
capital.
Underwriter
—
Beer
&
Co.,
Dallas,
Texas.
Illinois Central RR.
April 9 ICC authorized company to issue and sell $25,-
000,000
414%
consolidated
bonds, series D,
due
1982, without competitive bidding.
Proceeds—To
meet 1952-1955 bond maturities and to replace depleted
working capital. It is expected the bonds will be placed
mortgage
privately.
shares
(par $100)
East
to 3,500,000 shares
in order to facilitate possible future
(no par)
financing by
convertible debentures.
_
Industries
Corp.,
N. Y.
plans to expand its
to register its
securities with the SEC preliminary to a large public
offering, the funds to be used to build new industrial
projects in Israel.
it
was
capitalization
announced
in
the
company
near
future
and
Exploration
Co., Houston, Tex.
reported early registration is expected
of 125,000 shares of common stock.
Proceeds—To go to
March 21 it
April 10 it was announced stockholders will vote May 21
on
increasing the authorized common stock from 1,390,511
Middle
Oct. 31
Minabi
it Illinois Central RR.
of
be
certain
was
selling stockholders.
Beissner &
Underwriter
—
Moroney,
Co., Houston, Tex.
means
.
Continued
on
page
62T
62
(1754)
The Commercial and Financial Chronicle
Continued
from
Union Securities Corp.,
Mississippi Power & Light Co.
March
it
14
in
sell
plans to issue and
reported company
was
November
issue
an
of
Underwriters—To be determined by competitive
bonds.
bidding.
Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
""IBlyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields
&
&
Co.
(jointly); Merrill Lynch, Pierce, Fenner
Securities Corp.
Beane; Union
National Gypsum Co.
March 25 stockholders voted
the authorized
proposal to increase
stock from
common
a
2,500,000 to 5,000,000
on
shares in order "to prepare company for the opportuni¬
ties and requirements of the coming years." No immedi¬
ate
plans
have
additional
been
made
stock.
common
issuance
the
for
of
any
Traditional Underwriters
—
W. E. Hutton & Co., Cincinnati, Ohio, and Blyth & Co.,
Inc., New York.
National
April
2
stockholders
voted
to
the
increase
authorized
$20,000,000 to $50,000,000. There are
immediate plans for sale of any securities, but com¬
pany
start
may
using
long-term
bank
working capital instead of relying
Nevada
Natural
Gas
on
loans to
secure
short-term loans.
Pipe Line Co.*
Las Vegas*
Nevada
Feb.
8
applied to FPC for authority to con¬
struct a 114-mile pipeline from near Topock, Ariz., to
Las Vegas, Nev., at an estimated cost of $2,400,880, to
company
be financed
f
by sale of $1,600,000 first mortgage bonds,
$500,000 preferred stock and $402,500
New
British
March 5 it
Dominion Oil
common stock.
Co.* Ltd.
reported company plans offering of about
1,000,000 shares of additional common stock. Proceeds—
was
To be used for exploration development, etc.
Properties
located primarily in British Columbia, Alberta, and
Natural
Gas
Co.
Jan. 7 company filed
amended application with FPC id
connection with its plan to build a natural gas trans¬
mission system in the Pacific Northwest to transport
gas from Canada to markets in Idaho, Washington and
Southern Natural Gas Co.
March 3
filed with FPC a $76,000,000 expan¬
bring natural gas into its Alabama,Georgia and Mississippi service areas.
sion
a portion to be returned to Canada for use
Columbia. The estimated overall cost of the
Oregon, with
in British
:
project
is approximately $92,000,000.
Underwriter—
Morgan Stanley & Co., New York. Financing—Not ex¬
plans sale of pre¬
Proceeds—For construction pro¬
gram.
Underwriters—To be determined by * competitive
bidding. Probable bidders: Kuhn, Loeb & Co., Harriman
Ripley & Co. Inc. and Lehman Brothers (jointly); Stone
& Webster Securities Corp.; Shields & Co.
New
Underwriter—Allen & Co., New York.
England Power Co.
Jan. 11 company received from SEC
authority to increast
borrowings from $12,000,000 to $10,000,000. A major portion of this indebtedness may bf
financed through issuance and sale of
$7,500,000 first
mortgage bonds this year and the sale of additional
authorized
bank
stock to parent (New England Electric
System).
Underwriters—For bonds, to be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth &
Co., Inc.; Equitable
Securities Corp. and Blair, Rollins & Co. Inc.
(jointly);
Merrill Lynch, Pierce, Fenner &
Beane; Harriman Rip¬
ley & Co., Inc.; The First Boston Corp.; Kuhn, Loeb &
Co.; Union Securities Corp. and Salomon Bros. & Hutzler
(jointly); Kidder, Peabody & Co. and White, Weld & Co.
(jointly).
New England
Toledo Edison Co.
20 it was reported that the
company expects to
spend approximately $46,500,000 for expansion in 1952
to 1955, and it has been stated that no further
financing
Weld
is
&
shares of
& Co. (jointly); Kuhn, Loeb & Co.; A. C.
Allyn
Co., Inc.; Equitable Securities Corp.; Shields & Co.
and R. W. Pressprich & Co. (jointly). (2) for preferredSmith, Barney & Co. and Kidder, Peabody & Co
Co.; Lehman
(jointly).
March
20, F. A. Cosgrove, Vice-President, said a perma¬
financing program will have to be undertaken in
1952 to repay about $43,000,000 short-term bank
borrow¬
ings. Underwriters—For bonds may be determined
nent
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co. In case of
common stock
financing there will be
New
April
no
underwriting.
it
was
reported
tentatively to
Kidder,
Peabody & Co.; Smith, Barney & Co.; Union Securities
Corp.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. &
Hutzler.
22
it
was
announced
stockholders
May 6 to increase authorized
000
~
shares
(11,094,663
will
vote
on
stock by 1,500,presently outstanding).
flexible position with re¬
common
shares
This would place
company in a
spect to formulation of future finance
programs.
writers—To
be «determined
by
competitive
Under¬
bidding.
Probable bidders: Morgan
Stanley & Co. and The First
Boston Corp.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane.
Northern
Indiana
Public
Service
Co.
March 14, Indiana P. S. Commission
authorized the
pany to issue and sell this year
$10,000,000 of first
com¬
mort¬
bonds, series G.
gage
gram
estimated
to
Proceeds—For construction pro¬
about $20,000,000 in 1952 and
Underwriters—To be determined
by
Probable bidders:
Halsey, Stuart &
Bear, Stearns & Co.
(jointly); The First Boston Corp.; Equitable Securities
Corp.; White, Weld & Co.; Union Securities
Corp.; Cen¬
tral Republic Co.
(Inc.), Blyth & Co., Inc., and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Harriman
Ripley & Co., Inc.
Co.
•
Inc.;
Lehman
Brothers
and
Northern States Power Co.
April
sell
due
(the
17
it
about
1982
was
reported
plans
issue
and
latter
$21,500,000 of first mortgage bonds
about 1,100,000 shares of
common
stock
first
to
stockholders
on
Proceeds—For construction
program.
be determined by
competitive
a
l-for-10
basis).
Underwriters—To
bidding. Probable bidders
for stock and
bonds, Smith, Barney & Co., The First
Boston Corp., Glore,
Forgan & Co., Lehman Brothers
and
Riter
&
Co.
(jointly); Equitable Securities
Corp.,
Barney
&
Potomac
16,
Electric
R.
R.
Lehman
Co., New
March
and
&
1954.
Probable
bidders:
(jointly); Kuhn, Loeb & Co.
(jointly); Dillon, Read & Co. Inc.;
Ripley & Co., Inc.
V:
17
Car
stockholders
diate
with
financing
is
approved
a
proposal
to
year
to
diversification
planned.
issue
approximately
loans
and for
directors
decide,
No imme¬
Underwriter—
program.
Traditional
sufficient
$4,000,000.
new
common
Proceeds
construction.
—
shares
To
to
retire
Underwriters
raise
bank
To
—
be
Co.; Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly). (2) For preferred stock
The First Boston
Corp.; Kidder, Peabody & Co. and Blyth &
Co., Inc.
(jointly); Harriman Ripley & Co., Inc. (3) For common
—
stock—Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. and Lehman Brothers
(jointly).
24
on
to
$25,000,000.
plans for
indebt¬
The company said
future financing.
& Co.; Merrill
Lynch, Pierce, Fen¬
Beane; and Smith, Barney & Co.
Southern Colorado Power Co.
it
increasing the authorized
was
750,000 shares
announced
stockholders will
common
on
May 9
stock
from
(no par)
to 1,000,000 shares (par $7.50).
Common stock financing in 1951 was not
underwritten.
Southern Co.
Feb.
and
8
it
was
is
intended
be
to repay
the bank loans from
financing in the fall.
determined
by
competitive
Under¬
bidding.
which
announced that company expects to
was
$40,000,000
or
about
more
for
spend
1952, oi
through new
construction
new
$30,000,000
495,000 shares of
A
be
may
raised
in
bond
sale
is
common
expected
stock
in
(first to stockholders).
the
fall.
Underwriters—
For
stock, probably Stone & Webster Securities Corp.
For
bonds, to be determined by competitive bid¬
ding, with the following probable bidders:
Halsey, Stuart
& Co. Inc.; Union Securities
Corp.; Salomon Bros. &
Hutzler; Stone & Webster Securities Corp.; White, Weld
&
Co.; Kuhn, Loeb & Co.
and Wertheim & Co.
(jointly).
Washington Gas Light Co.
Jan.
12
that company is considering plans to
$4,500,000 from the sale of additional com¬
reported
raise about
stock to
mon
its
stockholders
(there
presently out¬
are
standing 734,400 shares). Underwriters—The First Bos¬
ton Corp. and
Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders. Proceeds—Together with
loans
and
other
funds
to
take
care
of
proposed
program.
Washington Water Power Co.
3,-
5,000,000 shares, and the authorized
Underwriters—Drexel
on
to
con¬
Virginia Electric & Power Co.
stockholders will vote April
the authorized common stock from
any
&
It
$6,000,000 expansion
edness from $4,000,000 to
it will announce later
ner
up
the money for new
announced
increasing
000,000
borrow
to
company
use
bidders:
Dec. 12 it
bank
Paper Co.
was
authorized
ney & Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Lehman
Brothers; The First Boston Corp. Registration—Of stock,
probably in August, and of bonds in September. \
\
.
&
it
;
Light Co.
On Feb. 15 it was reported directors have
approved plans to issue and sell in June
approximately
by competitive bidding. Probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Coffin &
Burr, Inc. (jointly); White, Weld
Scott
include
may
financing.
determined
March 7
bidders
,
Kidder, Peabody & Co. (2) For common stock—Blyth
Co., Inc., W. C. Langley & Co. and Glore, Forgan &
(jointly); Union Securities Corp. and Smith, Bar¬
Public Service Co. of New
Hampshire
March 6 it was announced
the
common
&
increase
Kuhn, Loeb & Co., New York.
of
of
Co.
Co.* Inc.
shares would be issued when
new
connection
shares
(1) For bonds—Halsey, Stuart & Co.
& Co.; Lehman Brothers and Bear,
& Co. (jointly); The First Boston
Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;
authorized common stock from 1,280,000 shares to
3,280,000 shares (1,045,500 shares presently outstanding).
in
Stone
Stearns
the
The
SEC
Probable
Hutzler
Pressed Steel
stock.
Inc.; White, Weld
Halsey,
Blyth & Co. Inc.
Harriman
7
writers—May
Inc.; Lehman Brothers, Stone & Webster
Corp. and Union Securities Corp. (jointly);-
Bros.
probable
'■.»
the proceeds of permanent
Boston
Salomon
and
.
that 3,165,781
competitive,
Power &
struction.
Power Co.
Dunn,
1953
/
of convertible preferred
$10,000,000 from banks and
Corp.; Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane, White, Weld & Co. and
and
ruled
Brothers.
Utah
Co.
Securities
First
issue
an
'
President, announced company
plans to raise about $40,000,000 of new money in connec¬
tion with its $62,000,000 construction
program in the
1952,
.
reported company plans issuance and
was
SEC
&- Co.
:
(approximately 27% of total outstanding) must
be disposed of by Electric Bond & Share Co.
Under-'
/
April
Barney
v;*
•
vote
to
May 15
and
Smith,
—
•
Smith,
stock
stockholders will vote
April 4
(Minn.)
company
Underwriter
York.
•
6 the
writers—If
announced that
was
& Beane; W. C. Langley
and
-
,
on
Traditional
cost
$21,000,000 in 1953.
competitive bidding.
it
Brothers
United..Gas Corp.
Feb;
Corp.
company intends, in May or
June, 1952, to issue $4,000,000 of first mortgage bonds
and $2,500,000 of preferred
stock, and toward the end
Niagara Mohawk Power Corp.
March
6
April
plans
company
issue and sell $3,200,000 of
bonds, $1,000,000 of preferred
stock and $400,000 of common stock
(latter to be sold to
General Public Utilities Corp.,
parent). Underwriters—
To be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.
(bonds only);
of Texas at
Probable underwriters
authorizing an increase in indebtedness to
$25,000,000, the funds to be used for capital expenditures.
•
Jersey Power & Light Co.
8
June
1952, ? when > about 400,000'
anticipated. Probable bidders:'
Underwriters—Probably White, Weld & Co.
& Webster Securities
Corp., New York.
stock; Stone & Webster Securi¬
ties Corp.; and Glore, Forgan &
Co., both of New York.
Philco
14 .it
sale this Fall of
for convertible notes and
March 31
late
stock is
Transcontinental Gas Pipe Line Corp.
.
area
before
common
&
Permian Basin Pipeline Co.* Chicago* III.
April 1 company applied to FPC for authority to con¬
struct a 384-mile pipeline system from west Texas and
estimated cost of $58,180,000.
contemplated
Merrill Lynch, Pierce, Fenner
(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. & Hutzler (jointly); Harriman
Ripley &
Stuart' &
Dec.
a
Nov.
by competitive bidding. Probable
bidders: (1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co.; Union Securities Corp. and White,
an
Co.* Houston* Tex.
applied to FPC for authority to con¬
1,350-mile natural gas transmission line extend¬
body & Co., New York.
stock to be determined
eastern New Mexico to the Panhandle
Gas
company
ing from Texas into West Virginia. The project is esti¬
mated to cost $184,989,683,
Underwriter—Kidder, Pea¬
part, by the sale of about $9,000,000 first mortgage
bonds, $4,500,000 of preferred stock and $4,500,000 oi
common stock (the latter issue to parent, General Public
Utilities Corp). Underwriters—For bonds and preferred
years
Telephone & Telegraph Co.
17
struct
in
common
petitive
$59,000,000. Underwriters—Stone & Webster Se¬
Corp. and White, Weld & Co., New York.
Texas-Ohio
Oct.
Electric Co.
Offering—Expected in mid-year.
author¬
curities
Jan. 5 it was announced that company plans to spend
about $26,000,000 for expansion in 1952, to be financed,
Co., Inc.
in
Proceeds—For 1952 expansion program
estimated to cost
about
are
Montana.
Tennessee Gas Transmission Co.
(all issued) to;
1,000,000 shares to provide for future
financing. It is
planned to issue and sell in June 100,000 of tne new
preferred shares and 250,000 shares of common
stock."
(par $50).
Pennsylvania
to
28 stockholders approved an increase
ized preferred stock from
600,000 shares
^ Oklahoma Natural Gas Co.
April 14 it was reported company
ferred stock
company
program
March
pected until after Provincial elections in April.
Supply Co.
indebtedness from
no
Northwest
Thursday, April 24, 1952
.
Co., Inc.; Union Securities,
Corp. and Equitable Securities Corp. (jointly); Harriman.
Ripley & Co. Inc.
V;
& Co. Inc.
$8,000,000 first mortgage
.
bidders: Lehman Brothers; Morgan
Stanley & Co.; Kid¬
der, Peabody & Co. and Merrill Lynch,
Pierce, Fenner& Eeane (jointly);
Blyth &
Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Probable bidder on bonds only, Halsey, Stuart
61
page
.
announced
Jan. 9 company applied to the SEC for
bank borrowings of
to finance
struction
authority to make
$40,000,000, the proceeds to be used
contemporarily, in part, the company's con¬
Permanent financing expected later
Probable bidders: (1) For stock or bonds:
Blyth & Co., Inc.; Smith, Barney & Co. and
White,
Weld & Co. (jointly); W. C. Langley & Co. and The
this
program.
year.
First Boston Corp.
Stuart & Co. Inc.
■
f'.
■
(jointly); (2) for bonds only:
'
'
V
.
Western Light &
Telephone Co.* Inc.
April 11 stockholders increased authorized
company is
sell later this year additional
ceeds—To increase investments in
planning to issue
common
stock.
Pro¬
common
stock
from 400,000 to 500,000 shares, the additional shares
to be
issued
as
funds
are
needed for
new
construction. Dealer-
subsidiaries in fur¬
therance of their construction
programs. Underwriters—
Managers—Harris, Hall & Co.
May be determined by competitive bidding.
The First-Trust Co. of Linclon, Neb.
Probable
Halsey,
.
(Inc.), Chicago, 111., and
Continued from page
(1755)
Financial Chronicle
The Commercial and
Number 5110
175
Volume
shares
these
5
have
been
publicly
With W. E. Ward well Co.
Shearson, Hammill Adds
sold.
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
The
proceeds from the sale of
the stock
The Moscow Conference:
chase
and
anri tn
and to
A
device
tyrdom
stories
The
U.
of
S.
tention
been
Department
State
in¬
row
revoke
some
all,
by
fullest
rang¬
official
to
The
for
Interpreter-escort,
Ameri¬
of
course, of the counterpart in many
years of Moscow's policy). Then
too, Secretary Acheson's critical
attitude
incurred
away
ened
;
of
cognizance,
(without
cans
of
Company held
Gamewell
The
on
A year
end dividend of 25c
record
of
1952,
28,
of
record
to
May
29, 1952.
Grand^Ave.
dividend notices
60 E. 42nd
DIVIDEND No. 27
The Board of Directors has this day
declared
quarterly dividend of sev¬
a
enty-five cents (75f*) per share, pay¬
able on June 16, 1952 to stockhold¬
of record,
Charles D.
May 29, 1952.
Brown, Jr., Secretary
JOHNS HOPKINS, Treasurer
Philadelphia, Pa.
April 22, 1952
April 22, 1952
share
per
verbiage issuing from the
- of - the - faith.
seemingly
innocuous
and
close
the
at
business
of
C.
W.
United States Lines
LION OIL
BECK, Treasurer.
Company
COMPANY
high-sounding resolutions would
been
perverted to exploit
have
Security Council), with
American
"orneriness"
again
good
Common
big
the
of
(One
names.
=
feathers in the Conference's man¬
~
regular quarterly divi'
A
tlend of
50c?
~
the
was
cap
Stock
share has
the Capital Stock of this
per
been declared on
international
lauding of a
•E Company, payable May 29, 1952, to stock'
proving her desire for war.
British
Lord
displayed to the
EH holders of record May 5, 1952. The stock
harvester
'
'
'
=
transfer books will remain open.
utmost.)
And the difficulties of
Our Policy Commended
=
E. W. ATKINSON, Treasurer
representative delegates would
company
=
April 16, 1952.
Nevertheless,
my
observations have been vastly increased by the
friiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiimiiiifiii
at the
Conference convince me make-up of the balance of our The Directors of International Harvest¬
that our government and
indus¬ "delegation" — a combination of er Company have declared quarterly
trial leaders in discouraging at¬ businessmen invited via the Con¬ dividend No. 135 of one dollar and
tendance
in
delegate
capacity, ference authorities' nationally-de¬ seventy-five cents ($1.75) per share on
DIVIDEND NOTICE
chose
the better of two un¬ signated "screener," of self-invited the preferred stock payable June 2,
satisfactory alternate policies. interested individuals, and labor- 1952, to stockholders of record at the
skelly oil company
close of business on May 5, 1952.
Granted that intelligent and rep¬ union representatives.
The Board of Directors has
resentative industrialists could
GERARD J. EGER, Secretary
today declared a quarterly
have taken care of themselves in Consistent With French Attitude
cash dividend of 75 cents
agers'
DIVIDEND
.V"
—
i'
•
■
•
debate
•
,
.
well
as
.
business nego¬
as
have
tiations, and that they would
remained
invulnerable
to
the
propaganda - via - trade blandish¬
ments; the point is that the dis¬
cussion and the entire "economic"
agenda
work
took place in the frame¬
of a
complete - vacuum of
In
checking
Conference
ernment's
as
this
learned that it was in
major agreement with ours.
He
was
told of the significance at¬
tached
tendance
of
ago,
Communist
NORFOLK
WLSTERN
AND
RAILWAY
Virginia, April 7, 1952.
NOTICE OF ANNUAL MEETING
OF STOCKHOLDERS
The Annual Meeting'of Stockholders of Nor¬
folk
and
Western
Railway Company will
be
Roanoke,
t
"
pursuant to the By-laws, at'the principal
office
of
the Company in
Roanoke, Virginia,
on Thursday, May
8, 1952, at 10 o'clock A. M.(
to elect four Directors for a term of three years.
Stockholders of record at the close of business
\
held,
'
'
v':
*
,
April J8, ,1952, „wl]j be entitled to vote
meeting.
•' - By order of the Board of Directors,
L.
y,
i
„
W.
COX.
at such
Secretary.''-,
v-v.
{
* ' '
Dye Corporation
the
The
Stockholders:
Annual Meeting of the Stockholders of
h
Chemical
Allied
Dye Corporation will be
principal office of the Corporation,
Broadway, Manhattan Borough, New
York City, at 1 P.M. (Daylight Saving Time),
on
Monday, April 28, 1952, for the purpose
of electing directors for the ensuing year and
for the transaction of such other business as
held at the
No.
may
properly
come
-
slanted
motivations.
at
as
The transfer books will
be closed.
C.
KING, Secretary
been
stock
Co. .common
cent)
ANNUAL MEETING ;
STOCKHOLDERS
Albany. X. Y., March
25, 1952.
Meeting of the Stockholders of
Central Railroad Company, for
the election of Directors and of three Inspectors
of Election and the transaction of such other
business as may be lawfully brought before the
meeting, will be held in the Ball Room of the
Hotel Ten Eyck, 87 State Street, in the City of
Albany. X. Y., on Wednesday, May 28, 1952,
at 12:00 o'clock Noon, Eastern Daylight Saving
Annual
-
said meeting is con¬
sidering, and acting upon the adoption of, a
joint agreement for the merger into said Com¬
pany of West Shore Railroad Company, New
Jersey Junction Railroad Company. New York
and Fort Lee Railroad Company, The Wallkill
Valley Railroad Company, The Toledo and Ohio
Central Railway Company. The Lake Erie, Alli¬
ance
& Wheeling Railroad Company and The
Federal
Valley Railroad Company, upon the
terms and
and
the purposes Of
conditions set forth in said agreement,
taking such other action as may
be appro¬
priate incident to such merger.
Stockholders of record at 3:00 o'clock
P.M.
April 25, 1952, will be entitled to vote at
such meeting.
on
By order of the
Dividends
in
will
he
paid
rants
Board of Directors.
JOSEPH M. O'MAHOXEY, Secretary.
share war¬
after June
of
respect
on
or
Bank of Canada
presentation of coupon number 79.
2, 1952, by The Royal
closed.
SOUTHERN COMPANY
THE
(INCORPORATED)
Directors of
pany,
dividend of
20 cents
members of the New York
and of the NASD,
on April 18 that all of
Cumulative Preferred
$4.25
declared
per
Company
1952
share
on
$4.25
its
f
The
if
i
|
*
INVESTMENT COMPANY
OF ILLINOIS
1952
Fifty
declared
Company
Common
of the
shares
business
of
May
record
as
of
dividend
share
per
17,
of
its
on
1952 to
the
close
1952.
2,
MASSACHUSETTS
The
No. 236
23,
meeting
held
on
April 23, 1952 declared a
dividend of Twenty-Five Cents (.25) a
share
payable on May 23, *1952 to
holders
of
record
at
the close of
business May
13, 1952.
Old Colony
Trust Company, of Boston, will mail
Cotton Company
Steam
at
RUDOLPH C. DICK
Secretary
President and Treasurer
PEQUOT
SHEETS &
PILLOW CASES
daily dividendi of
luxurious ond
PEQUOT SHEETS
8
CITIES SERVICE COMPANY
®
Dividend ISotice
m
l-iiiaiu'iiig tlic Consumer through na¬
I
Public Loan Corporation
s
IfI
,
Domestic Finance Corporation
m-
I
m
Ohio Fi.iance Company
Corporation
stock
cumulative preferred
series
dividend no. 9
cumulative
4.88%
preferred stock
series
dividend no. 18
has
of the
following quarterly dividends:
authorized the payment
4.88% Series.
The above
dividends
The
Board
per
a
share
of
Directors
business
of Cities Service
regular quarterly dividend
on
of
one
its $10 par value Common
Company has
dollar ($1.00)
stock, payable
stockholders of record as of the close of
May 16, 1952.
W.
ALTON
are pay¬
1952, to
holders of record May 5,
Checks v/ill be
June 9, 1952, to
:
The Board of Directors
able May 31,
declared
Loan Serviee Corporation
General Public Loan
DIVIDENDS
30^2 cents per share on the
Cumulative Preferred Stock,
li
Treasurer
1
$
Company
4.08% Series;
tfl
D. L. BARNES, JR.
principally
Edison
25V2 cent3 Per share on the
Cumulative Preferred Stock,
SI
May 16,1952.
—
California
restful sleep.
The Nation Sleeps on
share, payable June 1,
1952, to stockholders of record
tion-wide subsidiaries
Southern
a
4.08%
WILCOX, 2nd
pay
regular quarterly dividend on
..
1952
Directors of Naumkeag
Board of
checks.
m
CONSECUTIVE
April 21, 19d2
EASTERN
TEXAS
StdUK frtto*
per
i
Secretary
JAEGER, Treasurer
the Common Stock of 40 cents
Mi
of
Atlanta, Georgia
April
Hooker
DIVIDEND
m
May 1,1952.
May 5, 1952.
on
SALEM,
April
Stock, payable May 28,
stockholders
of
on
quarterly
a
($.50)
Cents
of
Directors
of
Board
wz
The Board of Directors d eclared
m
close of business
share
cf
ON COMMON STOCK
I
both
on
m
a
preferred
payable on June 2, 1952, to
stockholders of record at the
stock of the Company,
Dividend
ANSLEY
p|
convertible
of the company,
17,
1952.
3,
Stock
Electrochemical
'
II
4-5%
Cumu¬
payable June 27,
June
business
of
Common
n
share on the
Hooker
April
WMfr
°U
stock
share on the common
Stock
dividend
stockholders of record as
to
close
on
quarterly
a
lative Preferred Stock,
notice
of
Directors
cf
Board
The
$1.0625
p
of the
regular
Dividend
1952
QATH
per
June 6, 1952 to hold¬
record at the close of busi¬
payable
of
a
outstanding
the
on April
quarterly
meeting held
at a
L. H.
Hooker Electrochemical Company
Electrochemical
u
p
April 22, 1952
The Board of Directors
stock
The Southern Com¬
1952, declared
22,
common
GeneralSecretary.
Curb Exchange,
r
Shreveport, La.
and $1,125 per
on
CRICHTON
D.
DIVIDEND NOTICE
per
by cheque.
1952, will receive dividends
announced
dividend
and Preferred
(par one
10 cents per share has
completed. Chas. Weinstein
The New York
One of
tered
Central Railroad Company
NOTICE OF
Time.
payable June 2, 1952. Regis¬
shareholders of record May 1,
ness
at
& Co.,
Common
quarterly dividends of 25 cents
on
Limited
April 17,-1952
of 500,000
Leas¬
offering
New York 4, N. Y.
Company has declared
outstanding shares of Imperial Oil
per
ers
m
The
the
COLIN
m
OF
35c
Secretary
April 8, 1952
in
share
Canadian funds has been declared
of
Basin Oil Common Sfk,
U
Dated, March 20, 1952.
The New York
SHARE WARRANTS
dividend
By Order of the Board.
recent
One Broadway,
C. I. SWIM,
DIVIDEND
of the close of
1952, will be entitled to
VY.
of
A
on
Weinstein Sells Great
1952, to stock¬
at close
business April 29,1952.
able June 5,
AND HOLDERS OF
Transfer books will not he
before the meeting.
March 20,
this meeting.
business
not
sub¬
61
Stockholders of record
vote
politically
with
tions
ing
NOTICE OF ANNUAL, MEETING
To
were
shares of Great Basin Oil &
-61 Broadway. New York '6;.
'
scientists
anti-
to
The
Allied Chemical &
French
a
three
considerable
embar¬
rassment through devious tieingin
of
innocent-sounding resolu¬
jected
COMPANY
where
at
doctors
French
at¬
the
of
results
the
to
of a quarterly dividend of
fifty cents ($.50) per share payable June
6, 1952, to holders of Common Stock of
record May 23, 1952,' who on that date
hold
regularly
issued Common Stock
($1.00 par) of this Company.
CHAS. F. BRADLEY, Secretary
holders of record
NOTICE TO SHAREHOLDERS
spondent
years
NOTICES
IMPERIAL OIL LIMITED
corre¬
Moscow, medical conference
MEETING
share on the common
stock of this Company, pay¬
authorized
The Board of Directors has
the payment
per
Paris after the
to the French Gov¬
in
attitude,
Y.
Street, New York 17, N.
COMMON
ers
THE UNITED GAS IMPROVEMENT CO.
May 5, 1952.
"I won't play" attitude (lik¬
to the Gromyko walk out of
Co., 520 South
payable May 15, 1952 to stockholders
offensive
The
declared,
been
June
stockholders
May 15, 1952 to stockholders of record
at the close of business May 5,
1952.
completely snowed un¬
avalanche of peace
has
payable
April 18, 1952, the following dividends
were
voted:
25c per share payable
the
by
quarterly dividend of 35c
per
share on the Capital
Stock, par value $13.50 per
meeting of the Board of Directors
a
400-plus followers
(with misrepresentation)
the criticism of a stay-
UN
the
At
clearly. re¬
proceedings
mill &
WEST INDIES SUGAR
A
share,
the
namely
factors,
-
have been
der
W3S
Funds,
dividend notices
GAMBfELL
business leaders there would
our
He
Trusteed
Shearson, Ham-
CORPORATION
have
would
there
vealed that remonstrations by any
chiding non-Communist
with
Calif.—Munro
ANGELES,
Silver is with
■
kept unmentioned.
were
ing from high Soviet Government
Street.
Main
390
Co.,
formerly
J.
'
pressing political ones, which
exploited
was
on
on
notices
dividend
experts in a relatively nar¬
field isolated from the major
relevant
Amer¬
Wardwell &
crucial political
Our
authoritative
at- businessmen
to
rpntalc
rentals
LOS
Harry
—
the
exigencies.
against
royalties,
nil and gas
oil and trac
Mass.
Inc.
unrealism, in completely dis¬
with regarding
the
passports,
the
mar¬
story from
news
to,
icans'
to
wishing
citizens
tend.
,
terrorism
FBI
of
those
was
WORCESTER,
pur-
oil
acquire
nav
pay
to
leases.
Continuing Threat
The
used,
proceedings.
the
to
used
be
to
are
63
JONES,
President
the
stock¬
1952.
mailed from
Company's office in Los
Angeles, May 31, 1932.
f.c.
April 18, 1952
hale,
Treasurer
U
(1756)
The Commercial and Financial Chronicle
at
85%,
and
♦
cumstances
I±llLl
JL l/li
One
*
of
Richard B. Russell, United States
Senator from Georgia, tall, light,
and not too handsome. Pretty soon
bunch of political dopesters are
a
going to wake
series of
a
entirely freak political
accidents
have
make Russell
at
concatenated
pretty live possi¬
a
or
inner
of
these
tradition
is
The
as
Rights
bility for the Democratic nomina¬
though
he
tion for President.
conservative.
who
haven't
down
sat
States
the
got
States
People
diabolical
of
nod
The
Rights movement
are
with
was
the candidate of the States
Right-
the
to lead the revolt and
depose
they genuinely wanted
ers
Truman, and there isn't anything
to
about
revolt
of
nne
those
"reactionary South-
conservatives" who couldn't
l>ossibly by any remote stretch of
imagination get the Democratic
nomination, and so on.
1«rn
What has happened to the Rus¬
sell situation, the
sum
total of
what
has
been
^funny that
berg
happening, is so
political Rube Gold¬
no
would
months
have
been,
few
a
ago, crazy enough to fig¬
it out.
ure
For four years
the States Right-
since the 1948 campaign
ers—ever
From
view,
mobilizing the lead¬
South, much of
and have invested an
the
of
men
its money,
incredible effort in political man¬
to
power,
the
pave
anticipated
revolt!
for the
way
of
1952,
No¬
So
to
until
for
recently
pected
it,
if
that
was
run
most
they
people
would,
ex¬
after
the
Truman renomination, set up their
third party "Southern Democratic"
ticket.
This
ticket
to
was
Confederacy
electoral
Southern electoral votes
many
us
possible from the Truman col¬
umn
that
so
if
candidate had
the
the
Republican
close squeeze
a
in
North, the election would be
thrown into the House. This would
happen
if
candidate
no
had
an
electoral majority.
Few
people
had
that
pick
any
serious
House
illusions
would
"Southern
the
candidate,
the
if
the
thrown into the
to
go
Most
the
(assuming it
were
House, to be Pres¬
ident of the U. S.
would
Democratic"
decision
likely it
GOP
wasn't
for the revolution
the
GOP
nominee).
The
of
much.
the
beat
This
"left-
to restore the
South
to
place
of prominence in the
Democratic Party councils, par¬
ticularly to reinstltute the twothirds rule and that rule's power
for the South to veto
a
nominee
Democratic
in
national
a
future
left-wing
officially offered
was
un¬
to Senator Harry
F. Byrd. The Virginian turned it
down because his term as a Sen¬
ator expires and he must either
aim
for
reelection
public life.
He chose not to retire
merely for the sake
the
Stars
retire from
or
and
Bars
of
of
carrying
the
1952
revolution.
So the
sell,
was
accident
offered to Rus¬
No.
1.
Accident
No. 2 was not
necessarily an acci¬
dent, but perhaps a canny inner
political
a
to
sense.
private
give
a
(he
Russell didn't give
wouldn't be likely
public) commitment he
would head
a
That word had
Third Party ticket.
finally got around.
S.,
compromise
left
who
one
Is
candidate
weighed
him
and
found
him
no
Russell's
other
place to
go.
candidacy for the
■
the
Mead Briggs Elected
Truman
would
a)
do.
his views
;■
on
didn't
count
monkey
brass
could
No.
right
This
3
is the fact
politicians of
is
because,
middle
or
if
he
would be in
the
of
became
left
road,
President,
spot to restore the
South to its less humiliating (at
present) position on the anatomy
a
of the Democratic
"I
think
it's
because
one
*
What makes the Russell
aspira¬
tions pertinent are: (1) his un¬
appreciated
many
fact
of
record
of
favoring
"liberal" programs, and the
(2) that any present sign
strong left-wing nominee who
could get the
nomination, is en¬
tirely lacking. The handsome TV
a
star
investigator,
Kefauver, despite
at the
Senator
his
Estes
great
run
popularity contests, doesn't
delegates
the
Clearance Act of
opposed the
original Foreign
Military Assistance Act, and he
opposed the Point IV amendment
later
to
10%
a
that
cut
sition
that
take
the
than
Act.
in
propriations.
He
supported
all foreign
aid
ap¬
Russell took the po¬
aid
to
India
should
a
form
of
loan,
a
rather
gift. He is rated as one
generally alertly skeptical toward
handouts for foreign
governments,
*
In
s!<
*
the
main, Russell
is
for
"states' rights."
He was promi¬
nently behind the states in the
recent Tidelands
other
is for
oil
bill.
On
the
hand, the Georgia Senator
a
whole
similar
of welfare and
mess
indirectly
programs
im¬
would
appear
to at least rival his record
on
con¬
"father
is conservative.
erner,
Senator
Russell
does
impressive record
on
have
several
an
con¬
tion
Administration,"
for
Taft
-
Hartley.
When the President tried to elim¬
the
magic wand of
T-H, Russell
Truman
and
Georgia
voted
Senator
the
which
determine
would be
The
for
an
Railway Labor
would
let
whether
the
or
states
not
it
shop, instead of
Federal law or
by
board.
Like most of the South, Senator
tried to curb the impact
Russell
or¬
is said to be
backer"
of
REA in the Senate.
he
does
even
is
not
all
TV A
consider
though he
says
which
socialistic,
he is against
He is in gen¬
eral receptive to the entire
public
power program.
a
He
is
of
nevertheless
(like
the
school
and last year's scheme for Federal
aid to local public health units.
of
Although he has cast a couple
significant "anti-labor" votes,
Russell
voted
for
the
Wagner
Labor
Act
of
He
supports
the
Farm
Home Administration which pro¬
the
credit
most
for
abundant
the
least
ratios
successful
farmers and which is, incidentally,
names
changed, the bureau
started by Rexford Guy Tugwell.
Russell
is
supposed
to
assert
that Federal spending is too high
and cannot keep up at its present
rate,
yet
least
in
his
economy
recent
pressive.
As
Services
he
years,
record,
is not
ed
an
demands
Mr.
Briggs
is
President
of
Briggs, Schaedle & Co., Inc., New
York City, dealers in U. S. Gov¬
ernment securities.
Kalb, Voorhis Admit
Kalb, Voorhis & Co., 25 Broadl
Street, New York City, members
of the New York Stock
Exchange,
will admit Eva E.
For
Large Appreciation Potential
WE
CLASS B
the
units,
many
including Senator Taft)
number
he
did,
the
for
to
until
or
taxes
such
for
time
two
as
military and make possible
a
budget.
«
a
taxes, he voted with Truman
keep the top excess profits tax
cement
Southern
of
this
Company and
review of the Cement Indus¬
try
available
on
request.
Available around
11}^>
LERNER & CO.
Investment
10 Post Office
On
to
of
it
safe to cut the allowances of
balanced
producer
fast-growing
Analysis
reduce
(common) STOCK
leading
California.
and is for UMT.
others,
vote
A
sums,
He is reported to have said that
if he were President he would not
SUGGEST
RIVERSIDE CEMENT CO.
occupational
large
Merrill to lim*
ited partnership on May 1.
V( in
for
elect¬
Brooklyn, it has been an¬
by George C. Johnson*
President.
lishment and in general is behind
their
was
trustee of The Dime Savings
a
at
im¬
Chairman of Armed
has
Briggs
original
1935.
strongly
years,
in
housing
of
G.
Mead Greacen Briggs
nounced
were
public
backer
a
Mead
appropriations.
parity .support, the Truman pro¬
posal for Federal aid to education,
attempt
year
these
Bank of
limit
last
in
cut
lunch program, of mandatory 90%
While Russell may have favored
a
Slum
and
1949.
sympathy with the military estab¬
for
"socialistic" things.
there
closed
a
imposing
against
unions.
stood
amendment to the
Act
injunction
Executive
an
In any case, he
most
effective
Russell
anti-strike
picture
a
hard to imagine since Mr. Roose¬
velt first conjured this with the
der.
issues.
voted
for
with
Thus he is sometimes called the
of the Rural Electrifica¬
"the
He
issues.
Housing
tions Subcommittee on Agricul¬
ture, despite the fact that the larg¬
est farm organization, the Farm
Bureau Federation, itself asked
vides
record
asleep
conservation program a year ago,
as
Chairman of the Appropria¬
of
liberal
fell
Senator Russell backed the soil
pairing states' rights and actions.
that Russell has got riveted to the
inside of his pocket.
South¬
Public
His
servative
as a
directors
He
have anywhere near the
Many think Russell,
the
meeting!"
Russell has often bucked Truman.
demanding proof always that they
bringing results.
donkey.
*
of
at last week's
are
*
Securities
Square, Boston 9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 69
of the minimum wage
ing
law, favor¬
65-cent Federal
statutory
a
minimum wage versus the 75 cents
Truman wanted.
He also voted
for the
hands
Kerr bill
off
the
of
by Truman
Furthermore,
Russell in
1950
against rent control exten¬
sion.
He
recorded
as
public
ally-assisted
inspection.
the
himself
unoL-
favoring a 5,000 limit
housing units, and he
voted for the bill
In
FOREIGN
SECURITIES
Products
demogogy.
voted
on
Allied Electric
FIRM TRADING MARKETS
the
gathering of nat¬
ural gas—a bill vetoed
ficially
Trading Markets in
to keep Federal
regulation
production and
with much
job
the
he
professional
Russell,
convention.
At first the nomination
U.
a
South.
from
its
If
the
as
real, was, how¬
ever, secondary. The primary pur¬
was
rally
although not a conservative
(if fairly much a States Rights
man), Russell will have the back¬
ing of the conservatives as well
inate
pose
of
matters
And accident
purpose,
intensely
or
that
this
of
purpose
and
suc¬
the
pretation from the nation's Capital
and may or
may not coincide with
the "Chronicle's" own
views.)
have got the votes, it would have
done just as well.
servative
ostensible
<^artegy was to
wing"
Truman.
while
the
economic
to be called
were
from
Since he wasn't going to be Presi¬
dent
nominee
Eisenhower,
was
■off if Eisenhower
could
out
How¬
outstanding
conservative.
a
column,
anti-FEPC,
record.
(This column is intended to re¬
flect the "behind the scene" inter¬
of
was
whiz¬
falling
watching.
dif¬
much
Russell
he
as
swipe
as
make
especially
long
Truman
third term, and
a
didn't
his
Truman
a
been
bolts
Democratic nomination bears
kite,
point
or
big stack of delegates might
mighty nice. Labor definitely
So
a conserv¬
practical
whether
not
was
or
idea
The
were
Democratic
an
might have
the conspiracy previously
it
ference
the
vember.
the
as
stood,
—have been
ing
the
of
not
wanting, but organized labor just
and
ative.
He is
more.
any
tail
is
a
look
has
jective is to detach the South from
He
time-hon¬
man
have
is
along,
strong,
while their most fundamental ob¬
clined to pass by Russell.
to
comes
pre¬
conservatives,
until
ever,
the
long enough to figure out what
has been happening have been in¬
dominantly
past
"safe" state
a
anti-labor
cessor
behind the
men
a
lately like
jet aircraft.
other
mostly
movement,
even
not particularly a
is
a
The
may
biggest accident is that Sen¬
Russell
ator
by
from
harbored, his
"regular" is clean.
a
the
that
traditions
ever,
zing
have
not
may
record
to
(as of this moment,
rate)
any
to the fact that
up
Whatever
thoughts of possible revolt he
recent
section, especially the South. How¬
So Russell doesn't go to the Demo¬
cratic convention next July with
the stigma of a revolter on him.
C. —Enter
*
the
nominated from
D.
the
would have looked remote indeed
for two reasons.
ored
WASHINGTON,
against
rate of 75%.
Russell's nomination under cir¬
A
Capital
Thursday, April 24, 1952
.
House-proposed
Washington..
from thei Nation's
.
rate
BUSINESS BUZZ
BeTund-the- Scene Interpretations
.
state
field
to
open
relief
Feder¬
rolls
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