Full text of Commercial and Financial Chronicle : April 5, 1951, Vol. 173, No. 5000

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m

>3

Reg. U. S. Pat. Office

New

Number 5000

Volume 173

EDITORIAL

Impact oi Mew Monetary.
Policy on Mortgage Market

A number of the

-

Price 35 Cents

York, N. Y., Thursday, April 5, 1951

complexities and basic diffi¬

By W. A.

By S. B. LURIE*

CLARKfc*

arisen

have

troubles

and

so

far at least

Prominent mortgage
ditions that led to

have

interest rates.

proved insuperable despite the psychological ad¬
vantage of an emergency of a sort which has
existed and been much exploited by the managers

Says

Paine, Webber, Jackson & Curtis, Members, N.Y.S.E.
y*'1

banker reviews background of con¬
Treasury's abandonment of pegged

of changed policy

purposes

J or would-be managers.. Of course, the problems
are
commonly attributed to the launching of a
■large scale defense endeavor, and in one degree
or another they find their origin in this program.
It would, however, be folly to suppose that the
problems that have arisen in the endeavor to
5 "channel"
production into rearmament and to do
so without extensive price disturbances are bas¬
ically different or of an order wholly different
from those always certain to be encountered
when government undertakes to direct the opera¬

analyzing favorable and unfavorable factors in mar¬
ket outlook, Mr. Lurie cites as the chief "assets": (1)
our
"New Era" of general optimism, the "Fabulous
Fifties," and (2) the "New Look" of respectability of
common
stocks; and as offsetting liabilities: (1)
under-estimation of our productive capacity, and (2)

were:

speculative danger signals. Concludes favorable factors
sufficient to limit the extent of a prospective short-

inflationary trend; (2). the supply
seeking investment in mortgages; and (3)

flected in (1) general
of money

are

market decline.

term

the trend of interest rates. '
Our

It is fair to

that every man at this meeting is

assume

profession—the analysis of business and market
an
inexact science whose chief requisite is

trends—is

taken place during
March with regard to interest rates on long-term U. S.
Government bonds and the Federal Reserve's, decision to

familiar with the changes that have

intellectual honesty.

Thus, my remarks represent an at¬
establish a premise rather than dogmatically
express a pre-determined conclusion.
In this connection, my crystal ball
points to a seemingly contradictory
tempt to

abandon

a pegged market.
We cannpt arrive at a clear
understanding of the subject that we are discussing today

the important features of the new Federal ReserveTreasury monetary policy are not completely understood.
To make sure that the details of these changes are clear

conclusion

if

tions of the economy.

that

in

—

it

quandaries in which the

to

man¬

reviewing the

agers find themselves at this moment are, ac¬
cordingly, well worth careful study and analysis
for the light they shed upon situations which
arise whenever attempts are made to put free
enterprise in irons. Of course, it is obvious, as
it has been obvious many times in the past, that
any sort of detailed control over the behavior of

of

millions

and

men

touches both their

well
than

as

women

—

control

The second event occurred
eral

soon

Reserve

on

page

eralizations:

(1)
which

Government

We're
later

new

can

Continued
address

on

page

34

by Mr. Clarke at

COVERAGE

OF

DINNER—The

STANY

"Chronicle"

.

New

a

be

may

or

Era —one
called
the

the

There's

,

a

New

Look

to

respectable than they've been at any
25 years.
(3) More immediately, however, America's capacity
to produce has been under-estimated—and the immeContinued on page 32
today

are

more

time in the past

of

April

19

will

a

SPINNING
■

.

DWIGHT MFG. CO.

HOLLINGSWORTH

&

REED-PRENTICE CORP.

R. H.Johnson £ Co

IRON, NEW

WEST POINT MFG. CO.

31 MILK

&

Boston Stock

Exchs.

STREET, BOSTON 9, MASS.

Tel. HAncock 6-8200

120

Tele. BS 424

BROADWAY, NEW YORK 5, N. Y.

Tel. WOrth 2-0115

.

,4

Tele. NY 1-315

Canada

Monthly Commercial Letter
INVESTMENT

duPont, Homsey & Co.
Members New York

-

Bonds
across

Established 1927

SACO LOWELL SHOPS
&

v

SALES

N. E. GAS & ELECTRIC CO.

MOULD

.

Municipal

WHITNEY

LUDLOW MFG. &

VALLEY

the

stock market which in effect means that common stocks

ALMY

&

Sidney B. Lurie
'•

"Buoyant

■

♦A talk by Mr. Lurie before the New York Society of Security
Analysts, Schwartz's Restaurant, N. Y. City, April 3, 1951.

Conference
March 27, 1951.

the Eastern Mortgage

of the Mortgage Bankers" Association, N. Y. City,

(2)

in

Fifties"

"Fabulous

same

be* acquired only by turning in for exchange
the present 2Vz% Victory's'of 67-72 for new 2%% bonds;

they

specifically,

Special Section containing pictures taken at the Annual Dinner of the Security
Traders Association of New York on April 13 at the Waldorf-Astoria Hotel.

BATES MFG. CO.
FINE

supporting

stopped

.

.

Sheet;

as I endeavored;
balance sheet of the stock
market, it seemed to me that the pros
and cons fitted neatly into four gen¬

the terms may

36

PICTORIAL

MARKETS

include

DEWEY

More

March 8 when the Fed¬

on

j

to set up a

extensive controls

Continued

BERKSHIRE

J

day the Treasupr announced the terms
$19.6 billion refunding bond issue. In brief,
be>divided into three parts: (a) the bonds,
will be callable in 1975 and will mature in 1980; (b)

for the

♦An

ACTIVE

Board

be again reminded, if we
up

.

Fifties."'

On the

their business practices—is hardly more

We shall

{

bonds.

which

ordinary, personal conduct as

persist in the effort to set

f/j

The Balance

The first was, the announcement by Secretary of the
Treasury SnydeV that the outstanding restricted bonds
of 67-72 would be exchanged for a bond that would (1)
raise the interest rate by one-quarter of one percent, and
(2) be ineligible for direct sale on the open market.

pretense in the absence of armies of control

a

agents.

events that have" occurred,

a

term, appraisal of the outlook.

I shall first bore most of you by briefly

everyone,

suggests

bullish long-term, but cautious near»

Certain of the

'
'

^

In

(1) to let supply and demand work in money market;
and (2) to encourage holding of long-term government
bonds by investors.
Analyzes, from statistical data,
effects of changed policy on mortgage market, as re¬

•

Securities Analyst,

*

•

and all attempts to "manage" an
j economy have been strikingly demonstrated in
: this country during the past few months. These

Copy

OftheStockMarket

President, W. A. Clarke Mortgage Co., Philadelphia

culties of any

a

64 Wall

upon request

THE NATIONAL CITY BANK

Street, New York 5

f

Bond

Department

THE CHASE

PHILADELPHIA

BOSTON

Troy

SECURITIES

Albany

OF NEW YORK

Harrisburg

Buffalo

NATIONAL BANK

Scranton

Providence

Head Office: Toronto

Williamsport

Wilkes-Barre

Bond

Allentown

Washington, D. C.

Dept. Teletype: NY 1-708

New York
Seattle

Agency: 20 Exchange PI.

OF

THE CITY OF NEW YORK

Portland, Ore. San Francisco Los Angeles

We maintain active markets in

Investors

Internal Bonds
Bulolo Gold

Underwriters and
Distributors of

Second Fund

,

„i,,

,yj,,.. v

Prospectus from authorized dealers or

Ill

1

-

Established

BOSTON

1899

Angeles




New York

Cincinnati

Chicago
Columbus

Denver
Toledo

BONDS & STOCKS

COMMON
Analysis

CANADIAN DEPARTMENT

Goodbody

&

Co.

DottMiox Securities
Grporatioti

NEW YORK STOCK EXCHL

40 Exchange
115 BROADWAY

Dallas
Buffalo

Public Service Co.

Company

(all issues)

MEMBERS

CLEVELAND
Chicago'

Los

Brown
,

ESTABLISHED 1891

(Incorporated)

Devonshire Street

New York
1

OTIS & CO.

Dredging

Central Vermont

Placer Development

Municipal

and

Corporate Securities

VANCE, SANDERS &, CO.

CANADIAN

Dominion of Canada

Massachusetts

NEW YORK

Place, New York 5, N.Y*

105 W.ADAMS ST.

CHICAGO-

WHitehall 4-8161

request

IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal Exchanges

411 Broadway, N. Y. 6
WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

Teletype NY 1-2708

Telephone: Enterprise 1820

2

The Commercial and Financial Chronicle

(1426)

TRADING

MARKETS

The

IN

Security I Like Best

Southern Production Co.

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.

Common &

Rights

Federal Water & Gas,

Stubs

(The articles contained in this forum

Ex. Dist.

they

are

GLENELG

New York Hanseatic

Lionel

D.

Corporation
Established

Warren

York 5

Teletype NY 1-583

Petroleum

the

five

by

that it will

450

demand
either

New

120 BROADWAY,

j

,

for

for

further

still

are

based

in

very

upon

increasing

ac¬

ceptance

JllllllllllllllllllMlllllllllllllllilimil >

At

a

American Furniture Co.
Dan River Mills
.

•

Moore Handley

•

.

'

Hardware Co.

of

000.

Glenelg P. Caterer

increase
particularly if the new
to

gas"
investments can be subjected to
in the home, growing use
accelerated amortization. For this
of LPG, propanes and butanes in
reasori, as well as the existence of
chemical processing; and impor¬
the
funded
debt, the dividend,
tant possibilities as a fuel for trac¬
which is only 80 cents per share,
tors and busses. Inadequate stor¬
may not be increased this fiscal
age facilities, and the slower rate
year. The retained earnings, how¬
of growth in the demand for nat¬

gasoline

as

Lynchburg, Va.
LD 33

Tele. LY 83

illlllllllllllllllllllllllllllllllllllllllll

Development,

good return

Warren

is

Petroleum

an

natural
gasoline and its allied
products. The company's principal

the

purchase,

Frank

trans¬

G.

One

.

like

4,500,000 Tons Lead-Zinc Ore

of

extraction

TUNGSTEN-OIL-GOLD
Trading market maintained

Analysis available cn request

John R. Lewis, Inc.
AVENUE

is

also

natural
the

of

ended

large
for the

a

gas

In the

liquids.

June

30,: 1950. the
nearly one billion
gallons of natural gasoline and
other liquefied products.
It owns
natural gasoline plants having a
daily output capacity of about
700,000
gallons,
gatheringand
year

company-sold

ELiot 3040

holder

at

growing fac'or
in the oil and natural gas industry.
In the past fiscal year, its interest
oil

production

barrels

MCF

Inquiries Invited•

of

800

gas

wells

per

in

amounted

oil
pay.

55,000

It has

of

416,000.

A

over

producing

portion

acre¬

of

& Company

G.

become

a

stock¬

the

e s

a

this

of

Street, New York 5
NY 1-2643

of The Devonian Cor¬

better

of

about

the

year

5,000

barrels per day.

MEMBERS
MIDWEST STOCK EXCHANGE

Stix & Co
309 OLIVE

STREET

to

Jacques Coe

the




ended

share, excluding an
earnings of Devon¬
ian. In fiscal 1949, Warren earned
$4.10 per share and in 1948, $5.02.
the six months ended

a

dividends.

Even in the depression

of 1932, 75 cents a share was
paid, and the stock sold as high
as $12%.
year

other words,

In

the goodwill of

etc.,

can

together

with

its

leaseholds, fixtures,
be bought by purchase of

the stock for within

a

few dollars

net quick assets.

The

fact that

the

company

has

no

the cash position of the company
is

so

of its

earnings in the form of divi-!'

dends.

We

why this*
of dividend pay-,

see no

26-year record

reason

Dec.

gradual

uptrend

prices should restore to Warren

in
a

basic earning power exceeding $4
per

share

Verney Corp.

even

under

an

excess-

profits tax. Due to the earnings in

respective

years,

the

price

was

$22%; $26% and $21%.
This company operates 49 qual¬
ity restaurants and candy stores
under

the

Simplex Paper

Rudolph Wurlitzer
U. S. Thermo Control
Maine Central R. R.

(Com. & Pfd.)

of

sales.

Sanitary Products

Strict enforcement

Air Products

high-quality standards in both,

food

service

and

•' V : ";;v

sition.
At Dec.

★

★

established

has

and maintained a sound

trade po¬

Analyses

;

★

Request

on

31,1950, 1,105,400 shares

outstanding in the hands of

were

the public and lo4,600 snares Vvere

held

in

the

Since 1929

treasury..

148 State St., Boston 9, Mass.;

the company

has reacquired some
240,000 shares of-its own-stock.

1950,

have

Tel. CA. 7-0425

This

sum

: equal

was

to

Exolon Co.

Cash items alone, of

common.

y

,

.* ■' :•

.

Howe Scale Co.

$3.3 mil¬

f...."V
been

have

Reed Prentice Corp.

than dou¬

were more

ble current liabilities of
.

Teletype BS 259

:

working
million at Dec. 31,
for all foreseeable

about $9.38 per share of outstand¬

ing

:

N. Y. Telephone WOrth 4-5000

^

character¬

been

strong," with

ampl6

paid

;

by

HytronRad.& Electron's

Sprague Electric Co.

in varying amounts

company

Bought—Sold—Quoted

Ralph F. Carr & Co., Inc.
;

high-quality

relief

31, ments should not be continued in¬
1950 earnings equalled $2.01 per
definitely, and with the consistent
share, comparing with $1.38 in the expansion of the company's busi¬
corresponding period a year ness, there are good possibilities
earlier. In addition, the equity, in that in
normal markets, the price
Devonian's earnings equalled 34 of this stock
eventually could ad¬
cents.
vance again to the
high levels of
The combination of larger vol¬
1945, 1946 and 1947 — in these
and

of

31 Milk Street, Boston 9

Tel. HUbbard 2-6442

Teletype BS 328

asso¬
name.

a

commensurate rise in profits. Tax

as

unusually strong, permits the',
equity of payment of a substantial portion

per

ume

St. Louis 1,Mo,

in

1950 equalled only $2.63

49 cents in the

In

%
Inquiries Invited

The principal

However, heavy EPT prevented

bank loans, no preferred stock
and no bonds outstanding, and that

production
income

J

most

to sales widened

of its

Net

and

II), the ratio of operating income1
perceptibly, with
the peak being attained in 1944.

The .Shat¬
tuck organiza¬

trade

branch offices

our

During the war years (World War

poration, an oil producing com¬
pany which
is believed now to

June 30,

liquors

standards
ciated with the "Schrafft"

estate,

Warren furthermore

30%

the

have

70 Pine

WHitehall 4-1875

Mobile, Ala.

York

high labor and ma¬
terial costs necessary to maintain

favor¬

known

NY 1-1557

New Orleans, La. - Birmingham, Ala.

and relatively

basis.

a

St., New York 4, N. Y.

HAnover 2-0700

by narrow margins. This
reflects in part the. keen competi¬
tion which exists in the industry

kind, and
so

Exchange

limited

tablished

business

business,

75%

25 Broad

quarter since 1925.'.Earning
power of the company
has .peku

long

real

owns

'

Curb

each

opportunity to
share in

its

and it
promising situation in Run¬

County.

New

establishments

the

and

Dividends

such.an

this

nels

;

York

Schrafft's Sales Corp. The whole-.
sale division accounts for about

the

investor

has

has

a

of

air-conditioned.

lion.

is

leases is in Scurry County,

Paul Frederick

Frank

"Schrafft's," has been in business
since May 31, 1906, and it enjoys
to a 26-year record of uninterrupted

36,000

and

and has undeveloped

acres,

age

of

the

of

that

tion,

6,000

half
wine

to

It

able

in

Over
serve

needs.

quick

assets.

on

a

Company

can

seldom

lines totalling over
miles, over 2,200 tank cars, a
33,000-barrel tank ship, and stor¬
age facilities for 80,000,000 gallons

Warren is also

ISSUES

the

Metropolitan area; 1 in Syracuse;
2 in Philadelphia and 7 in Boston.

istically

a

close

net

transmission

gasoline and 25,000,000
gallons of LPG.

PUERTO RICAN

in

are

Company is because at $6.8 million,
one

Of natural

Teletype SE 105

39

funds of1 $10.3
'■

principal'reasons I

stock

Shattuck

800

SEATTLE

the

this time

its

it

Shattuck
of

price

processor

which

Finances

New York..City

the

ucts,

although

the additional in¬

>■

Corporation

largest company specializ¬
in the handling and sale of

is

on

the equity
promises a

Senior Partner, Jacques Coe & Co.,
•

?.

the

function

York Stock Exchange

Direct wires to

JACQUES COE

long range outlook is for contin¬

important growth and
improved price relationship. "

up

which

vestment.

portation and sale of these prod¬

Limited

1006 SECOND

business

a

price pattern. These conditions
gradually are being corrected. The

ing

Placer

are-

in

mo.or
fuel, have caused sur¬
pluses in the past and a marginal

ued and

building

ever;

blending agent

a

in

Scott, Horner &
Mason, Inc.

Members New

1,699,-

are

They are likely

this year,

"bottled

ural

Steiner, Rouse & Co!

recent

(LPG)

Trading Markets

Bought—Sold—Quoted

Shattuck

G.

perhaps could stand
candy manufacturing plant is in
improvement which no
Boston while a New York City
doubt
it
is
receiving
through
plant
manuiactures
canay,
earnings.
On
June
30,
cash
amounted to $5,829,000, total cur¬ cream, bakery products and main¬
tains a laundry. Candy manuiac-,
rent assets
to $14,413,000,
notes
tured by the company, in addition
payable to $1,440,000 and total
to being sold in its own retail es¬
current liabilities to $8,571,000.
Capital expenditures were rela¬ tablishments, also is distributed at
wholesale through a subsidiary—
tively low in fiscal 1950 at $6,512,-

favorable,

Tel. REctor 2-7815

York

further

The

prospects

debt and

of stock.

fiscal 1950 and

nat¬

or

gas.

use

NEW YORK 5

shares

a market
$54,400,000 was indicated
for the equity. The working capi¬
tal position appeared to be ade¬
quate.
It was improved during

petro¬

expansion

(

New

D.

Members New

until

value of

Members

York Stock Exchange
York Curb Exchange

importance

price of 32 for the stock,

growth in

ural

New

run

any

—

Lionel

Company —
Jacques Coe, Senior
Partner,
Jacques Coe & Co., New York
City. (Page 2)

It is not likely
into excess-profits

000 of long-term

past

exceeds

leum

l:

of

taxes

margin

the

McDonnell &fo.

Corporation

has

good EPT credit.

a

consider¬

a

able

Since 1917

&
Co., Inc.,
City. (Page 2)

Frank

Louisiana Securities

Corporation

Caterer,

Edie

Profits Tax Act, the company

Co., Inc.,

City

years.

This

Rights & Scrip

nor

P.

Consumption of the group of earnings reach at least $3.50 per Northern Pacific—William G.Kahshare.
lert, Partner, Jamieson & Co.,
liquid
hydrocarbons
known
as
Capitalization of the company
St. Paul, Minn. (Page 30)
"natural gasoline and allied prod¬
consists of approximately $21,000,ucts" has increased by over 60%
in

Specialists in

*

&

Edie

New York

he,

to

the base period under the Excess-

CATERER

P.

intended

not

are

Alabama &

and

Selections

Petroleum

Glenelg

offer to sell the securities discussed.)

as an

1920

120 Broadway, New
BArclay 7-5660

he regarded,

to

Warren

Thursday, April 5, 1951

.

Week's

Participants

Their

A continuous forum in which, each

American Gas & Electric

Electric Bond & Share,

This
Forum

.

.

"Schrafft"

nam*

of

in

194-3

rise in earnings to
the

best

reflected

was

since

$1.87

the

per

in

Pennsylvania Railroad

Philadelphia Electric Common
Penna. Power &

a

South

share,
*'

$2.60 of^ 1929.

Sales in 1950 of $40,946,000 were

from

the

1949.

Costs

1.9%

down

recorded

in

Central Electric & Gas

Central Public

$41,743,000
were

Light Common

Jersey Gas Common

Utility 5V<js

American Marietta

un¬

der control with

operating income
rising to 5.5% of sales as against
5.3% in 1949.

Taxes absorbed 43%

of taxable income against 40%

1949

net to

in

limited the rise in final

and

11.5%

to $0.93 per share
from $0.83 per share" in 1949. Dur¬
ing the year 14,100 shares of stock
were acquired by the company at
an average cost of $9.61 per share.
In view of

dividend
ment

and

pr

Henry B. Warner & Co., Inc.
Members

Phila.-Balto.

Stock

Exchange

123 South Broad St., Phila. 9, Pa.
Phila. Telephone

Bell System Teletype

KIngsley 5-2700
New

York

Direct

PH 771

,

\

}

City Tel.: BOwling Green 9-4818

wire

to

Ames

Emerich, Chicago,

the indicated liberal

policy of the manage-the strong position of

finances, it islikely that
equal
exceed the $1 per share paid
1950. The dividend policy ap¬

company

total payments for 1951 may
or

in

pears

to be one of making modest

payments in the first four quar¬
ters of the year and then making

Over-the-Counter i

Quotation Services
for 38 Years

year-end payment in line with
the
indicated
full year profits.
a

With

prospective rising earnings,

accompanied by a strong financial
position, it is possible that the
regular
quarterly
disbursement
may

be increased moderately in

the not too distant future.

National Quotation Barean
Incorporated
Established 1913

46 Front Street
CHICAGO

Continued

on

page

30

New York 4, N. Y.
SAN, FRANCISCO
&

♦

N»mteer"9060

Volume 173

The Commercial and Financial Chronicle

; V.

(1427)

i*

;Av-r.vi>'
&

-

■o

KND E X
mm m
mm

v.

•(.> ><'

...

Article* and flew*

By IRA U. COBLEIGH
Author of

■

"How to Make

'

•

,

"

*

page

A Balance Sheet of the Stock Market—S. B. Lurie

,

S

Cover

Killing in Wall Street and Keep It!'*

a

"

Impact of New Monetary Policy

Suggesting consideration of convertibles as a defense against
stock market decline; and highlighting special features favor-

■''/

Cover

The Convertible Is Now in Season—Ira U. Cobleigh

;

Telegraph 3%s.

ing American Telephone and

Mortgage Market

on

YOU MAY KNOW

3

W. A. Clarke_:

ALL ABOUT EVE

...

How Do We Keep Our Economy Strong?—J. Cameron Thomas
■

'Ever

s

see

boxer

clever

a

rack

10-rounder

in"

a

stock, with

paying $9 dividends, yields 6%.
another powerful defense
point.
\

ning rounds .and then defend for
the next three?
Well, if you'll
„

.

,

a fistic
financial allu-

...

where

right

are

gt

seven

say

worth

rounds

and,

—

of

course,
U.

Ira

y
the
it

match,

don't
tenth

in

the

Well,

I'm

Not

you?

lose

your

right

now.

$20,000
profits

say

market

want to roller coaster it? You

tially

find

can

Surely
little logic right
you?

are
a

now

switch

to

it

eat
the

over

t

the

best-the

would be worth

the

credit

ATT

of

case

this

of

if

worth about

no

a

Well, in
long-term

is

company

now

2.80% interest rate;

At

106, these 3%s yield that—so
that's our base price.
That's the
highest price at which "beady-

eyed" bank examiners would approve and allow the entry of these
securities into a bank portfolio,

:•
>

without leering nastily at the investment
officer!
That's
your
defense

basic

thing

more

bond

is

jmick,

so
Let

bit.

106.

price,

Any-

that you pay for this

This

issue-isxconvertible

for

twelve years from this June into
*"a

rnrri

4.

_

«moo

-ATT common at: $138 per
.Now that's:not

lowest

bad, for that's the

the\stock

has

sold

since

200.

as

So

the

lncrease

th

Sees Mobilization Endangering

coi*

o£

.

*

.

.

,

Ideas

to

worth

if

reSume.

Wanted for "Bawl

bond

at

ATT has

From Washington Ahead of the

lousing

up

a

Observations—A.

of

Wilfred

May..

Public

<Y

•

.

v

4

1-5

Teletype—NY

Albany

-

Chicago




-

Glens Falls

-

Schenectady

-

Worcester

*

The State of Trade and

Tomorrow's Markets

Washington

(Manufacturers audiodiscs,

Magnetic Recording Tape)

42

31 Nassau Street

*

Tel. DI9-3430

Column not available this week.

Twice

Published

FINANCIAL

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

and

(

CHRONICLE

'

5

-

*

*

V*

',

(

DANA COMPANY, Publishers

York 7, N. Y._

Park Place, New
2-9570

to

*

Copyright 1951 by William B. Dana
Company

Air Products

Reentered as second-class matter Febru¬
25, 1942, at , the post office at New
York, N. Y., untfer the Act of March 8,

Baker-Raulang

;

;

WILLIAM

DANA

D.

SEIBERT,

RIGGS,

'

1879.

•

Subscription Rates

9576
-

»

Publisher

President

Business Manager

Thursday, April 5, 1951

E«r"

and every Monday (comissue — market quotation
records
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Other Offices:
135 South La Salle St.,
vertislng

issue)

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(Telephone: STate 2-0613);

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E.

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ary

WILLIAM B.

!

New York 5, N.Y.

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1

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COMMERCIAL

Request

PETER MORGAN & CO.

38

—

48

5

on

5

Industry.'

(Walter Whyte Says)..!.

You

and

Analysis

2

Like Best__„

plete statistical

Hubbard 2-8200

'

PI., N. Y. S

Audio Devices, Inc.

30

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Pan-American
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Securities Now in Registration
The Security I

WILLIAM

HAnover 2-4300

•

1 40 Exchange

32

-——!

HERBERT D. SEIBERT, Editor &

25 Broad Street, New York

45
—

— -

Corner

......

Stock Exchange

.

24

...

...

Securities Salesman's

REctor

Spencer Trask & Co.

,r

Teletype NY 1-1825 & NY 1-1826

1

Railroad Securities

conversion
on page

MACKIE, Inc.

47

Securities

Utility

t

A

5,,

;

Offerings..!.......

Security

Prospective

PREFERRED STOCKS

York

——

...

Governments

Our Reporter on

.

HA-2-0270

14

Reporter's Report..

Our

&

39

—

———

About Banks and Bankers....'.......

News

is';

20
V

...1

request

Singer, Bean

—41

—

on

*

News—Carlisle Bargeron

—1_.:

Notes'-!.—.

N ST A

*Prospectus

record of never

bond

Continued

conversion

8

.L--Y

Mutual Funds

YVanity Fair Mills, Inc.

29

——

Lear, Inc.

/

8

.

—

Recommendations..'

Indications of Business Activity...

prices after that),
a

Oil Co.

28

Einzig—"Britain's Raw Material Crisis"—.—

salting away profits, for defending
the last three rounds: 1 rue the

but

Franco-Wyoming

27

—

—

Dealer-Broker Investment

**

Corp.

Bates Mfg. Co.

Y

i38?

at scaled down

'

Angeles..

Associated

...Cover

Coming Events in the Investment Field—...——...

25

New

37

—

Securities

Canadian

more is it
built-in 12-year call

a

:

32

Stocks

Bank and Insurance

for interest

High Grade Public Utility and Industrial

Members

Philadelphia and Los

—28

Small Business

....

Reg. U. S. Patent Office.

-

22

Street Journal"

It (Editorial)

See

We

As

Well, when the
subscription books opened, the
yy j price was around 112. Surely

interested in offerings

Direct Wires

Regular Feature*

_

much

how

worth with

ATT

a\liff>

off

106

purp0ses,

the

Teletype NY 1-3370

21

Groups.—

Dev. Res.

A Built-in Call on ATT Stock
So

Incorporated

Broadway, New York 6

_

•

.

Reilly & Co.
,

tW

to

The
are

61

represent a continuous under-

on

:

'

ir

18

Production.

(Boxed)—i

Ponder

Facts

*

We

16

Industry Planning Enormous Expenditures...^..

how

*

1946 and meanwhile it has sold as

high

just

knows

bond could be taken away from
sn^re.
you by call (ft) 107 in 1953 (and

~

J. F.

14

BO 9-5133

it was not hard to perceive six
lets kick that around a p0fnts to be a quite reasonable
s
see
what it s worth.
prjce fag on so good a call. Surely
Convertible Feature '
this is an almost ideal issue for

*

7

11

.

Federal Finances...

at Pressure

Governor Hits

Utah's

for} the conversion gun-

The

Zonolite Company

• v>

.

Unfrozen—

Partially

Industrial

in

Decline

'

—

NYSE Chairman

as

Assets

German

Forecasts

jnitted assets (111 comeback to
this one -another dime. -The KeJauver Committee showed that
Jots of people don t go around
"admitting" assets) into common
stocks,- you can hardly pick a
surer-fire selection than ATT. , >

convertible

the

Lone Star Steel

-

7

"Court"

Aired by

Be

Robert Boylan to Retire

Then latch on to my final
argument
Pension and mutual
*unds *nd "Prudent" investment
^fus5,s
en buyers of ATT
steadily It's way up on dividend
buyers hit parade. And, if the life
insurance ^companies are shortly
empowered to put even 2% of
what they coyly refer to as <ad-

In "casing" this

attached.

were

f

.

{or any "convert") the first thing
to find out is what the security
feature

no

to

Defense

jyjng purchase demand for the

($415,000,000) debenture issue recently emitted by American Telephone and Telegraph Company,
the 33/8s due 1963.

Nobody

g^oc£

size

king

will

there

960,000 satisfied stockhold-

flimsy bond can dwindle in a backspinning market just about as fast
as stocks.
So how about starting
with

substan-

program

...

ers

good bond, not a cluck; because a

off

National

phone calls from five to ten cents,
v
nnn

^ all, you wa:nt 1to buy a

i

«

24

<

26

dive.

t

u

j.

Lear Inc.

Reflected in Poll.

Snyder Reports Improved

'
4.

c

22

1

r'1

J

■;

Roots Opinion

Grass

Copper

Great American Ind.

18

Regulations—George P. Smith.... 31

of Unrealistic

,

much more the stock will earn by
.

and

defense

buy convertible bonds.

the

completed

(3)

You

too.

Roadblocks

Blocked

nose

!hi? +ma^es sense to y°u>
and

Continental

16

Dollar?"" ~

S. Foreign Policy—Harold E. Stassen

The GOP and U.

Thus, the
floating supply of the stock will
tend to dry up and ATT will be
technically less of a patsy for a

what to do-you can have

cake

Air Products

Wallace Turnbull..- 13

Keep Public Informed of Money Supply!—Thomas I. Parkinson

ings of bonds or shares.

stashing away a slice of your
market gains, perhaps as much as
heres

Training—William A. Robertson 12

From Inflation—Walterk Sonneberg....

Flight

longer be dangling over the marheavy periodical new offer-

you

WHitehall 4-6551

11

.

Byfield and Leon H. Keyserling—_

S.

^et

for

your

—Robert

calls for additional capital;

with.

know
hang on all the way up,
hang on all the way down, and
get off where you started! You're
not going to fall for a rum go

that,

...

NEW YORK

WALL STREET,

Telephone:

Dangers—Roger W. Babson_T

.

m0us

like

Sabotaging.

Is

'

Is Happening to Your

"What

(2) Consider also that this big
expansion program m&de enor-;

market

you

Johnston.-.:

Canada's Investment Opportunities—-W.

power

^Are you a pig OrWill
last forever?
do

this

Discord
.1

Wage-Management

1

.

Russian

t

stock

of

more

Obsolete Securities Dept.

.

by a knockout!
boy. I've got a

plan. Supposing you've
or

•

9

l;

know all about obsoletes.

today!

truly powerful forces

are

which its vastly more
efficient plant can now produced
Net per share of $9.70 in 1949 has
increased to $12.58 in 1950: This
gives you a vital clue as to earn¬
ings trend.
;
;iv -;
:

keep

to

J

just about completed its postwar
$4,000,000,000 expansion program
and has only just begun to show
the substantially improved earn-

and win

on

J

we

us

(1) First, let's say that ATT has

ing

you

want

Cobleigh

■,

I

The Evil of Universal Military

these shares as follows:

a

u p

plethora
of
market pelf—

and

Defense—Eric A.

at work to prevent a tailspin in

for pil-

years
n

There

—but

Again—A Controlled Materials Plan—Alonzo B. May.12

to be, not very far.

seems

swell

some

i

now.

had

We've

Inflation

ten)? If it "fell outta bed" how
far South could it go? The answer

you

_

and the Home Mortgage Industry *

Richards

D.

■

99

Is it dangerously' high now
(around 157 when this was writ-

that that's

Dollar?—Roy L. Garis

a

—Franklin

How good is this stock anyway?

sion, could be

Is

FHA's Current Operations

That's

pardon

-

6

Try

thirty-year record of

a

4

What

150 the

value is pretty solid.-At

win-

seven

up

Quotation

Record

(Foreien

-

nostatre

Monthly,
extra

THEODORE YOUNG & CO.

1

>30.00 per jear. (foreign postage extra.)

Note—On account of the fluctuations in
the rate of exchange, remittances for foreign subscriptions and advertisements must
be made in New York funds.

40

Exchange Place, New York 5, N.Y.

WHitehall 4-2250

Teletype NY 1-3236

The Commercial and Financial Chronicle

4

either

pression.

If

of

world

our
economic

all

to

all

at

times,

has

ninteea-thirties came
determination

importance

people

tcday, for the

sions.

entire

came

world

f

r ee

depends

to,

for

a

have

a

than

As

of

also

a

It takes vast

resources

ma¬

most

have

We

resources.

need and

we

that we

materials

produce at home.

we

these

.

takes

It

come.

not

do

We are keep¬

channels open through
foreign
materials

the

wnich

of

sense

a

re¬

sponsibility and the willingess to
make

sacrifices

effort

on

the

citizens.

of

attain this
Free

the

for

defense

of. all

part

I

1

hope that

objective

groups

will

we

soon.

:;

operating in

men

free

a

have made use^qf

economy

great

material

have

made

resources.'

.

our

most
ever

our

history

and
has

our

known.
we

a

continuing

our ups

that

underlie

should

like
we

address

by

Mr.

program

making

before

the

Annual Spring Meeting of the Association
of National Advertisers, Inc., Hot Springs

|,Va., March

as

putting

short

years

we

de¬

tremendous

the

economy,

we

as

up

impressive.
spent

But more

in

food

on

than

stores

some¬

rubber

on

The 100-cent dol¬

lar of last June is worth about 91

In

supermarket.

the

at

about

the

will

buy

thing- the

only

of

more

than last June is advice on

today
how. to

Unless

earlier.

a

was

the

every¬

to

We

nationwide

had

levels

CED

a quick transition
civilian production.

are

now

been

the

field

of

Many

were

we

nineteen-

late

the

postwar

hopeful about,

cynical,

pictured

when

them

you

to

us

for

important

dol¬

groups,

buying

consumer

Much

of

the

fact,

But

Last

June, total wage and salary
were, running
at an
rate of $140 billion.
In

annual

January of this year, the rate was
up to $155 billion, a rise of 11%.
Just before
Korea, the average
worker

industrial

earning

was

just under $59 a week; in January

common

stock

and

What

borrowed money.

was

in

dishwashers

clothes-

and

vacations

with

pay

available, but

not only

were

sphere of world politics

or

the details of miliary produc¬

they apply to the

as

against inflation, which
could easily become Russia's silent
ally if it isn't checked with vigor¬

fight

of Interstate Power Co. is

action.

ous

6Qt conservative dividend.

the

end

of

February than in the
the Korean War be¬

before

week

gan,

measured by one repre¬

as

sentative

from the

of

end

of June

December.

Now

we

moment

a

pause

how much inflation
last

June.

been

hearing

cent

dollars

lost

its

'

25

Co.
•

NEW YORK CURB

REGISTERED INVESTMENT ADVISERS

BROAD STREET, NEW YORK 4, N.Y.




a

new

entering

are

the rearmament period.

More and

more

for

production will be

military purposes.

There are

signs that the rapid rise in prices
and

two

to

three years, at least, there

or

be

can

no

fight

in

let-up

the

efforts

inflation,

and we must
be ready for more upward surges.
While we are now spending an
amount equal to only about 7%
of
total national production for
defense purposes, by the end of

a

inflationary

It came in spite of
increase in the physical

10%

which

industry,

of

production

goods available than
before Korea.
And not until the
made

more

last few months has much of

production

gone

to the

this

military.

The inflation also occurred in the

Federal

surplus in the

there
rise

a

Without going into
detail, I can say that
several reasons for the

were

in

course,

The

of

outbreak

In

about

in

war

wage controls work
as well as
possible. But we must realize that

price and wage controls will not
by themselves stem the tide of
inflation. They deal largely with
symptoms rather than the under¬

lying causes. They can be made
work only if other steps are

to

of

to

taken

Merely
We

must

have

adopted

was

War

great

a

soon

see

the

public

EXCHANGE

(ASSOC.)

;.

assume
was

1950.

so much
that the

have

all

about 50has

term

Besides,

since

World

War

instead

worth

have had

it

decline in the value

dollar

the

before

We

meaning.

refers to the
of

we

Hotel

higher
of
the

wave

after

Lid

just
set

a

money

•

that

100

Measured

some

that
cents
in

II.
the

in

terms

time

Let's
dollar

June;
of

the

page

Spacious Rooms
Delicious Food
Intimate Cocktail

Excellent Service

Atmosphere
Lounge

September,

of

1950

to

rebuild

so

as

to

have,

on

■

1

1 *'

For reservations

-

^Theodore B. Archibald, Manager
Plaza 3-9100

their

inventories to previous levels and

beyond,

on

hand

Madison Ave. at 54th

we

controls

Central Location

•

the public
had
eased
up
on
its
buying
splurge.i «• This was followed, in
turn,-by' a rapid effort of busi¬
nessmen
during the last three
months

of

Weylin

•

into the liquid assets it
accumulated by saving in the
By

prob¬

the requirements

Homelike

and it dug

had

our

because

of the discriminating

would otherwise have been saved,

past.

causes

Korea

began:'

spent

a

Continued

To finance
their greatly expanded purchases,

to

solved

as

meets

buying,

real

not regard

lems

prices.
The result

the

reduce

inflation.

of

It also brought
fear

renewed

a

effort to check the price-

spiral, our government has
adopted a set of direct controls
designed to stabilize prices and
wages. This decision having been
made, we should make a sincere
effort to
make these price and

brought back memories of war¬
time shortages, inferior merchan¬
dise and rationing.

an

•

Let's
since

*

end

phase of

•

&

the

to

/

•

Kalb, Voorhis

The

statistics.

of

set

supply of money in the nation,
that is, currency and demand de¬
posits, rose as a result of credit
expansion by $8 billion, or 71/2%,

wage

brought this

retail

•

How Much Inflation

request.

primary market in this stock.

MEMBERS NEW YORK STOCK EXCHANGE

was

Bank loans

outstanding to businesses and
farmers were over 37% higher at

bond income,

prices.
One reason, of
is the wage increases that
have been granted, which enter
within the reach of the less wellto-do as well as the rich.
And into the cost of production, and
which
give wage earners more
then, on top of all this, came
Korea and a new awareness that money with which to bid for goods
the Russians and their satellites and/ services.
Moreover, the
American people have a tremen¬
meant business.
We are now em¬
dous reserve of liquid assets which
barked on a program to show that
can
easily be turned into cash.
we mean business, too.
I am not

were

CO.

on

on

about?

surge

statistical

0

■

living

annuitants.

the

budget.

two-week

at the

stability, its good growth prospects and its
current

the people

of

washers, automatic gearshifts and

their professions received

Special Analysis is available
a

that

money

spent, particularly on inventories,

are

electric

from

high
income and growth

7% from the

We maintain

wave.

Borrowing

of

Importance

wages is flattening out. : It
actually benefiting
may
be that we
have already
the aggregate seen the most acute
phase of in¬
wages and salaries of all groups flation.
But the signs ahead are
in the country have risen much not too hard to read.
I think we
more than the cost-of-living index.
must
realize
that
for
the
next

in

Korean

Our detailed

more

second

from inflation, and

face

tion, except

over

Several

lars.

cash

in the

yield of

earning

are

during the war, had actually be¬
come-a
reality.
Television sets,

going to discuss what this entails

its unusual record of

Americans

years

Wages,

of

gentlemen

to assist businessmen in

POWER

on

before the Korean War, but most

was very

.

if .somewhat

a

generation of economists and

top of

There

thirties.

INTERSTATE

based

just

material¬

not

and department store sales
were extraordinarily high
in this

that

level

a

little un¬
prices—in
fact, the nation's total income—
were" sky-high in comparison with

postwar

is obvious to

at

was

employment,..

The CED, incidentally, "wonders

businessmen who

30, 1951.

generous

did

stores did

retail

After
slump

traditional

the

have

we

undoubtedly
have
considered
impossible ten

I;

Our recommendation of the

it

than

less

buy

may

defenses

our

would

objective

depression

inevitable.

successful

do

Thomson

three

communism.

the

in

born

been

postwar

was

war

*An

the

for

two or

on

build

was

..

today.

sion

to

myself today.. If

be

mands

did not believe that this depres¬

It is to this problem of

that I

It

its immediate
prevention of

stillborn,
one

our

instability

had

the

That

problem

greatness.

address

is

average

payments

of the program

stability

For

run.

will

depression.

depression.

existence of the very institutions
resources

to all our people..

increase

at the expense

this goal of a stable
came into its own during

'thirties,
was

which at times has threatened the

Vand

progress

is directed at specific measures to

say,

it

cause

the world
throughout

have had

make

The second part

out the

Economic instability

downs.
been

But

our

that

economy

in our

stronger stuff.
It grew through¬
war boom, and partly be¬

economy

progressive

has

I

the

Production

They

the
strongest, the most productive and
the

the

' are

grocery

depressions and

possible, and the economic growth
that spreads the benefits of our

economic growth and

worse

our

accumulating huge stockpiles

ing

pro¬

a

individual
initiative and in¬

weakens,

centives

of what we have

economy

We have that.
free, intelligent,

hard-working citizenry.

and

raw

rubber

wholesale.

at

Christmas

against his earnings had risen almost 7% the
year
we
will be spending
a
to about $63.
The farmer has about 18%. Meanwhile the pub¬
war, we can hope to reach a state done well, too. Total farm income
inevitable that the avoidance of
lic will be earning money at an
of preparedness that can be main¬
in June was at the annual rate of extremely high rate, and much of
depressions should be given pri¬
tained without many additional
$16V2 billion, and by January it it will be funneled into the pur¬
mary emphasis.
The literature of
a
curtailed
economic stabilization theory and surges of new military production. was 22% higher, or $20 billion. chase of
supply of
And we have to be ready at the
Corporation profits are generally civilian goods.
Unless we take
practice has built up a strong and
same
time to move on to a full
firm and fundamental action
reported
by quarters, and the
large volume of argument against
war
if it should be forced upon
pertinent statistics are not yet against inflation, this excess of
depression.
It is, unfortunately,
us.
This is the context in which
demand
over
civilian
not as strong on what to do about
available, but it is obvious that civilian
the stabilization program I shall the
inflation.
profits of corporations have supply will force prices and wages
describe to you should be viewed.
also risen.
;
higher and higher, despite wage
Almost as soon as the goal of
At the time of the invasion of
These are the aggregate figures. and price controls.
economic stability became widely
South Korea, the postwar infla¬
This analysis of the economic
accepted, the second World War tion
They do not show that some per¬
was
developing
renewed
sons' incomes did not rise along trend of the past
broke out.
It was not too long
eight months
momentum, after a brief period
with the prices of things they had puts in clear relief the fact that
before one of the other theories
of readjustment in 1949.
With the
to buy.
of the
These people are the di¬ policies for economic stabilization
'thirties, the doctrine of
beginning of the Korean War, in¬
economic
rect sufferers from inflations the in the time ahead should be de¬
maturity, fell by the
flation
really
took
hold.
The
primarily
toward
the
persons
on
fixed
or
slowly veloped
wayside// The goal of a stable
economy was already in a boom.
adjusted salaries, the pensioners, dangers of a spiralling inflation.
economy, however, was made of

growing

the

to

parts

A more stable economy

freedom,

the

It is the basic aim of

rising living standards.
J. C. Thomsoa

have that.

are

less

dollars

dollar

The only way we will consider is
the way that strengthens, rather

nation's foremost

of the

that is not gained

industrial capacity.

terial

two

are

inflation.

Economic stabilization be¬
one

economy

t r emendous

We

Economy Essential

could be achieved in several ways.

depres¬

future

of freedom,

our

takes

what

cents

endure successive

American

the

strong?
For
thing, we

It

to buy raw

used

will prove

from Malaya.

is a strong
get inflation

which

need,

There

the
universal

tribute to the development

us

one

able

If the

time when

Stable

called
dynamic stability; that is, stability

keep

and

it

fact,

economy

must

be¬

under control.

ment, in fact, to develop policy
recommendations that will con¬

does

What
take

dollar is

only 86 cents.

current

Committee for Economic Develop¬

vival.

it

of

avoid

to

goals.

it for sur¬

on

influence since the

and broad program to

days of

dismal

the

of

Out

greater

even

aware,

Measured

economic sta¬ gram for greater economic stabil¬ stop inflation.
communism, we must bility in the emergency that- now ity. One part is for the long term.
Individual Income Higher
We must develop and make the
economy strong. This confronts us/> we may see the col¬
Of course, there is another side
strength, which is basic lapse of many of the other pillars public aware of the goal of an
economy that does not have to to these
of our economic strength.
our
high .prices.
The dollar

keep

efforts

ize,

Korea.

not achieve greater

to end the aggression

are

we

in

lar is worth

since

period ahead we should shake
off our ingrained and partly sub¬
conscious fear of depression, and
turn our attention to the pressing

be reduced drastically — by $6 billion;
(3) taxes to be raised on individuals, corporations, and excises
to yield $5J/4 billion;
(4) bank credit to be checked;' and
(5) savings to be encouraged nationally.

buying.

tory buying also applied strong
upward pressure to prices, par¬

against wholesale prices, the dol¬

Inflation, we are
has been the dominant

great goal.

the

following specific proposals for steps to be taken: (1) pro¬
duction to be increased in all possible ways; (2) government

of

in another
This inven¬

to sell

goods

upsurge

prices in general have risen ticularly

to be worth only 44
ginning of World War II, as it cents; although that is an extreme
has, in fact, after all wars. In our example it shows the extent to
effort to stabilize our economy in which price" inflation can go at a

expenditures to

:

Thursday, April 5, 1951

.

enough

16%

now

both long and short term, and endorses its

over

rose

-

sale

economic

official, citing the national business organization's newly
anti-inflation proposals, asserts we must seek

stability

which

the

THOMSON*

announced

./

index,

thing that had been going on ever
since economic stability became

Strong?

Bancorporation; and
Chairman, Subcommittee on Monetary, Fiscal and Credit
Policy of the Committee for Economic Development
CED

cost-of-living

6V2% from June to January, the
dollar
is worth
something less
than 94 pre-Korea cents.
Whole¬

taken by surprise by some¬

were

President, Northwest

*

is that the
their leaders

fact

The

its "hard-

or

during the de¬

education

American people and

Our Economy
By J. CAMERON

academic

its

knock"

How Do We Keep

of

.

.

(1428)

St., New York 22

38

Volume 173

Number 5000

.

Continued
Steel

The
*;

State of Trade

"Business

*

•

•

By A. WILFRED MAY

"

Index

right,

Auto Production

Industry

3

page

Now in Season

*

-

Commodity Price Index-^
Food Price

and

from

The Convertible Is

Production

■Electric Output

Carloadings
*Ret»il Trade

5

(1429)

Chronicle

The Commercial and Financial

.

by

,

redemption -ahead

•

-maturity,^ - *.

Failures"/; "

of

.

.

Today we have this splendid is-

>

to consider at around 115 and

sue

One of the -main obstacles in the ^waging of the battle -against
overhanginginflation is the tendency of so much of the com¬
munity sto confine its. fightingrservice to the use of its lips. Too
many segments, of. the; population: do
not in practice treat as
fundamental the threat of monetary debase¬
.

/you have to make up in your own
'/With greater, emphasis

on

defense production overall indusr.'

trial output revealed a slight trace of expansion last
in past weeks continued to be markedly above the

comparable week of last

'mind just how much a premium
above 106 you want to pay. At 115,

*

year.

•

•,

.

week, but

as

-

level of the

Although aggregate production was at the highest point since
the close cf World War II, estimates placed it about 10% under
the all-time peak reached in 1944.

.also

go

.

slight rise was noted in the latest reporting week in new
for
unemployment insurance.
Employment in March
advanced following a mid-winter lull.
The

Department of Commerce reports a total of 60,179,000
employed in March, or an increase of 1,250,000 over Feb¬
ruary.
Fast-growing defense production, on top of a normal
seasonal rise in job opportunities, it was explained, pushed the
March total about 2,500,000 above March, 1950.
Unemployment
fell to
ruary

2,147,000 in March, representing

On

■../

300,000 drop from Feb¬

a

of

Monday

this

Charles E.

week,

Mobilizati<?n

Wilson,

If I

have

been

the

"tooling-up stage" of

be

to

seem

dium in

ideal defense

an

events
now

still

have

the

ATT

and

continue

up.

If ATT should sell

up

to 200,

debentures

would

be

worlh

around 160.

mobilization

a

pro¬

debentures

ATT

appear

almost ideal convertible

as

on

an

almost

conceivable count.
A mar¬
$10,000,000,000
company,
premier example of American
private enterprise.
A wonderful
credit.
Why, a default on these
debentures is as unlikely as Joe
Stalin
embracing the
Roman
Catholic
faith!
Moreover,
im¬
proved earnings could very well

gram

every

in the

velous

that by the end of 1953 will have brought enough expansion
economy to permit a return to unimpeded civilian output
wilh a continuing high level of military spending.
Summing
under

are

to date, Mr. Wilson said 3,000,000 men
more than 1,000,000 tons of military equipment
progress

up

arms,

allies in the last

have been shipped to America's
have been placed

for

and orders

year

than $23,000,000,000 worth of military

more

Defense expenditures, he said, are running at a rate

equipment.
of

the

should double by the end of the

$2,000,000,000 monthly and

drive

year.

to

The maximum

production impact

materials, Mr. Wilson

on raw

be

disclosed

He

materials has

a

food

the

of

program

■

.

the

modicum of relief

was

afforded this week by the

needed,

be

in

son,

votes the $10,000,000,000
from the Administra¬
tion during the calendar year 1951. For the current fiscal year,
ending June 30, Mr. Snyder forecast a budget surplus of $2,900,000,000.
Last
January,
President Truman had foreseen a
$2,700,000,000 deficit.
V
In the steel industry civilian steel tonnage is being increas¬
ingly crowded from mill order books under pressure of mounting
defense demand, says "Steel," the weekly magazine of metalworking. Rated orders are accelerating steadily and mill delivery
promises on such account now generally fall in third quarter.
On certain specialties, mills are committed well into fourth quar¬
.

Meanwhile,

ter.

defense

are

programs

growing and the confusion attending diversion of more and more

a

commercial consuming channels is intensifying

tangle of directives, priorities and
Defense

will

These

be the

allocations.

same

as

understood, they will necessitate an overall increase in
running
same

DO numbers

which

allocations

The programs will carry the
that apply for May. Scheduling procedure, on

at least

to

but, it is

those established for May,

43,000 tons.

point producers have

been somewhat confused as result
Continued

on

page

40

announce the

115

broadway,

CO.

8c

new york 6,

n.

y.

little

a

if

I'll

than

one

(de¬

more

talk
ATT.

sort of a homework
why don't you look

as

tures convertible into 40 shares of

troleum 2%s

Phillips Pe¬

due 1975?

dealt

has

primarily by inflation. Inflation
the final
blow to nations first1

by military defeat, famine, moral
factional internal strife. It was only
combination of
these circum¬
A. Wilfred May
stances that inflation in the past wrought such
havoc in Germany, China, and other countries
Inflation seemingly is not too disliked by those government
officials who bank on statistics which indicate transpired and

decay

or

under

some

-

sensational

future

the booming gross na¬

and stress

expansion,

product and production records, but measured

tional

yardstick of a shrinking dollar. •*";
The above-quoted belittlement of

-

■

ad¬
official econ¬
omist, flies in the face not only of past pronouncements of his
Chief, the President, but his colleagues' concurrent pronounce¬
during debate by the nation's number-one

ments.

"Unless

attain stabilization we' are gambling

we

last
the

language:
"Unless

inflation is controlled,

it could prove to be an even
than the more

serious threat to the vitality of our country

more

speculative aggressions of enemies outside our borders."

;:

/

Roosevelt's

"visions of rubber dollars." 1
Alan

'

:

Valentine, while still the government's Economic Sta¬

bilizer, on Jan. 11 last in Cleveland warned that only controls
save the economy from havoc.
But once out of office, he

could

national econ¬
wholly under the control of government; if we mean arrest¬
ing and freezing our productive organization within some pre¬
determined framework; then our economy cannot be stabilized,
at least short of complete dictatorial socialism.
Such regimenta¬
tion would reduce personal incentive and repair production; it

frankly stated in public: "If we mean bringing our
omy

initiative and destroy free enterprise.'^

would strait-jacket
In

organized labor leaders' demands for

N.

&

T.

S.

spring-board for their self-glorification
rises and disastrous cost-of-

■.

.

.

National

Bank, National City Bank, Blyth

Co.,

and

First Boston Corp.,

Inc.,

Harriman

;■

A

for-the-Other-Fellow

Good

The business man also

Continued
★

on

1

Meeting

of the

1932.

■

,

a

Dr. Valentine's address at

Ripley & Co., Inc.,

issue of $50,000,000 State

new

of California series C, State school
WE

building bonds. Purchased by the
group
at competitive
sale, the
bonds are being offered for public
investment
as
follows:
the
4s,
maturing

1953

from

to

1977

NEW YORK OFFICE
AT

are

inclusive, from
(Bankers'

vertisement

To Conduct a General Securities Business

new

appears

on

14 Wall Street
Telephone: COrtlandt 7-0175
1

•

'*

v-

page

R.

Shaw

'

«

is

with

'

•

"

"

■

■

•

.

.

OF

William J. McGovern
WITH DIRECT PRIVATE

WIRE CONNECTIONS TO OUR

KANSAS CITY OFFICE

7.)

44

*i

UNDER THE MANAGEMENT

1.80% to
issue ad¬

With Shields & Co.
Frederick

OF A

ANNOUNCE THE OPENING

in¬

1958

& Latshaw

Uhlmann

Wall

MEMBERS

samuel
april 2.

Duo to
We

therefore

offices

we

N.

&

Company,

Street, New York City,

made

share,
Y.

to

with

Farrell

teletype

serviee.

arrangements
use

their

and

1-2377,

Securities
You

ask for Englander & Co.

,

:




I

.

,,,-r

,■

.

1

-

STOCK

EXCHANSE

EXCHANGE

Board of Trade

MiDWEST STOCK EXCHANGE

(ASSOC.)

DETROIT STOCK EXCHANGE

Bldg., Kansas City 6f Mo.

<

Company,;,

call us on

Can

YORK

NEW YORK CURB

members

of the New York Stock Exchange.
In

the past

Hoffman

he

&

was

with Walston,

Goodwin

and

-

PRIVATE WIRES TO

with

.

W. R. Bull &
i

NEW

f. englander

augusta

1»51

Shields

present,, conditions, no new teletypes are obtainable in New York City.

have

whose

englander

1—r

Co., Inc. of Bridge-

port, Conn,*&;•/ A.

•

4,

>.

the 31st Annual Luncheon of the Asso¬
ciated Industries of Cleveland, March 14, 1951.
2 From

is making a public offering today
of

47

page

Air, March 27, 1951.
From Mr. Roosevelt's address at the Brooklyn Academy of Music, Nov,
Town

America's

J

-

participates in the fight-for-deflation-

of

America

Chase

A.,

price ceilings with¬

making further demands for pay

living escalator clauses.

of

Bank

.

is it to cite President Roosevelt's
deficiteering and repudiation after
Candidate
prior phillipics against deficit spending and against

flationary price rises as a

members

leading
the

are

.

relevant here

Se.emingly
embracing
of

A nationwide investment bank¬

group,

■„

An Earlier Flip-Flop

Bonds Marketed
which

with the

nation," warned Defense Mobilizer Wilson*
week. And Mr. Martin, in his inaugural statement on assuming
chairmanship of the Federal Reserve Board, Monday used this

future security of our

ceilings, it may be presumed that they sincerely desire
this double-standard as first choice.
But it also seems probable
that as a close second choice they are not too dissatisfied with in¬

$50 Million School

ing

against the
'/""*■

the inflation danger,

vanced

1968, at par; l%s, due from 1969

1-2577

ruined

weakened

in

•

productive nation was'

"No secure, free and
ever

out wage

California Issue of

to

y.

teletype n.

doubt

Canadian Pacific and

1.95%.
barclay 7-5344

telephone

Cadillac!

as

re¬

cline, set forth the following conclusion:

priced to yield from
1.20% to 1.40%; V/zs of 1959, at
1.45%; lV2s of 1960 and 1961, at
par; IV22 of 1962 to 1964, from
1.55% to 1.65%; l%s of 1965 and
1966, at 1.70%; l%s of 1967 and

re-establishment of

ENGLANDER

well

also into Canadian Pacific deben1

clusive,

we

I

better

in sea¬

now

but our government offi¬

The Chairman of the Presi¬

sponsibility* for the last decade's dollar de¬

con¬

convertible,

Cadillacs)

but

a

Meanwhile,
assignment,

&

for June, it adds, are now being set up.

programs

as

not

on

about

.

set-asides for

tonnage

steel from regular
in

later

In any

hike, there will be no further tax demands

debenture

bentures

increase

event, Mr. Snyder promised, if Congress

good, the

I'll talk about this some

months ago might be enough to keep the arms

build-up on a pay-as-you-go basis, without a second tax
which he had said in February would have to be sought.

is

brethren, is a real
and the convertible is

an¬

$10,000,000,000 boost now before Congress.
Testifying before the
House Ways and Means Committee, which is about to start work
on a new revenue bill, he declared the program recommended by
the Treasury two

•;

credit

the

business interests, and

some

well.

cent debate over the New and Fair Deals' re¬

earned

attractive, marketability
wonderful, and prospects splendid.
The
management is tops. This,

additional tax increases
balance the budget, beyond the

to

order

it

version

„■

nouncement of Secretary Snyder that no
would

if

years.

So

Despite higher military demand, the director stated, civilian
supplies are likely to be a little larger this year than in 1950.
Some

that

worth

Of this, he revealed, $3,200,000,000 is now on

February prices.
hand.

nation's

stockpiling vital
goal of $9,700,000,000 worth of goods, based on
that

forward

basis,

$15 a
share. Also, don't forget, above the
$9 dividend valuable subscription
rights have been moulted through

be in*effect later this year.
v

stock

common

180 that is
the stock would technically

—and

occur in early 1952, adding that some kind of
"controlled materials plan" for allocation of all vital metals will

will

predicted,

the

5%. yield

a

as

dent's Council of Economic Advisers, in a

me¬

premature, you
foot in the door

your

market

the complacent are

only the politically-favored and subsidized

cialdom

is somewhat

if

accompanying devastating dis¬

Included among,

stock market bulls,

And,
even
if
taking profits

that

prove

the

and

pressure, groups,

market that could tail-

a

overnight.

spin

Director, in his initial quarterly report stated that the past nine
months

not

these; telephone convertibles.
did so, it's only because they

the

and the lowest March total in four years.

ment

locations.

Perhaps I have dwelt too long

claims

persons

up

issue.
-on

A

wet track you could
points -but you could
40 points riding this
'
1

nine

drop

;-«■

_,

,

could be, on a
"

APRIL

2, 1951 "

PRINCIPAL CITIES THROUGHOUT

THE COUNTRY

/

Financial Chronicle

The Commercial and

6

yardstick remains standard¬
at 13.714 grains of

lion/ Gross national product ap¬

What Is
■

"

•

'

"

,

'•

'

1

•

regarding nature and functions of the dollar.
involvements, diversity and complexities of views.

monetary experts
Points out

Concludes, in summing up: (1) our standard of value is a
dollar which consists of 13.714 grains of pure gold; (2) it is

world

increasingly difficult problem in a dynamic

an

even to

reasonably stable purchasing power of the dollar;
(3) previous domestic convertibility of currency and bank
deposits into gold has contributed to dollar's stability; and
(4) a modern managed gold standard within our domestic
economy would do much to restore dollar's integrity.
This seems to

Chicago "Herald

superficially simple question.
it is not as simple as it ap¬

a

Yet

dollar?

a

Young,

"one's

answer

to it is

the key

to his

thinking about
money.

Daily
in

we

the

['}

press

is

dollar

less; that
prices are go¬
ing up;, t h a t

ern

Jbonds

have

paid for them ten
that

sions

be

may

when

losing their
worth little

we

We

*1933
a

currency

■ticians

that

and

is

since

still

have

fiscal

and

the

over

policies

mone¬

of

their

pressure groups are denounced as
persons

the

or

forces responsible for

increasing loss of confidence

in the dollar.

"Sound

longer

to

no

seems

as

a

mean

What

is

this

dollar

medium of exchange

a

as

dition

of

not

agree

What

is

to what, is

as

it

want

we

medium

also

our

standard

of

;■

to—must-

1 The author has permission to quote
various economists
who replied by
letter to his inquiry, ' What is a
.

Money Illusion," Profes¬

standarize

•

pains to
the yard,

stabilize

or

'

*

such

at

are

we

of

It

value,

deferred

Money

The

$27.4

billion

.

.

without

can

existing in

even

a

is

our

than it was in the

now

G.

Albert

defined

Hart

a'

v

"Dollar,

noun,

in U.

account

currency

(l).The unit of
(2) the unit

S. A.;

of account in various other coun¬

percentage of the $167.7 billion of

piece of paper

in one-dollar denomination.

credit

in

as

of

our

the

same

14,653

that time amounted to

tries

date.

banks

-

two

stabilize,; yet

standardize

the

in

same

at

(notably

Canada);, (3)
a
or metallic money,

just

as

have standardized

we

goods-unit of measurement.

every

dollar is

now, by Act of Con¬
13.714 grains of pure gold.
simple arithmetic, therefore,

By

of

gold is worth $35
since 480 grains in the ounce di¬
an

ounce

ardized

yardstick—is an indis¬
pensable social asset. Otherwise,
the purchasing power of the unit
becomes meaningless.
f
')
The
quotation of the English
pound at $2.80 in United States
dollars is a case in point. Foreign
central banks and governments
and

can

their -dollar

convert

do

at

credits in this country into gold

privilege and
right denied to American citi¬
zens.
Foreign students often state
that
their
government
would
$35

per

ounce—a

rather have United States dollars

But if they, have gold
American dollars.
If

than gold.

they

nave

they have dollar credits they earn
convert them into gold at the rate
of

gold per

13.714 grains of pure

means

lar

equals

professional

cept for
choose

a

to

both

popular

utterances—ex¬

few professionals who
operate with unusual

their book, "Money, Credit
Finance," Luthringer, Chand¬

ler

and

Cline

point out that

al¬

though the unit of money may be
composed of or represent a fixed
weight
fact
-

of gold—as has
theUnited

in

case

seldom

enters

the

been

States—this

into

the

con-

scious calculations of people since

time

in

they become accustomed

to

making valuations in terms of
units
of
money.
Furthermore,

they point out that the monetary

unit, which must be and is stand¬
ardized, "has never remained con¬
in

stant
iN VESTMENT

BANKERS

value"

purchasing

or

•

power.

.

Established 1925

'

Members New York Stock Exchange and Other National
Exchanges

'■

UNDERWRITERS and DISTRIBUTORS
of INVESTMENT SECURITIES
BROKERS of BONDS, STOCKS, COMMODITIES

Of course,

Congress <vm at any
time change the content of the
dollar or standard of value, under
constitutional

its

money

But

coin

to

and to regulate its value.

until

would

power

does

Congress

seem

axiomatic

•

Phone LD-1 59

2

it

so

that

Congress 13.714
gold.
That
is
standardized by law.

.......

'

r

'

rate of

13.714

grains to the dollar,

is one of the few means we have

of testing objectively
integrity of our dollar.;
\
Domestically,* "the flight from
present

the

the

which, has

dollar"

veloping

is

months

Americans

ingly

-

recent
test.

such

another
are

de¬

been

strongly 'in

so

becoming increas¬

alarmed

the

over

Continued,

on

dangers

37

page

-

LAMB0RN & CO., Inc.
STREET

WALL

99

NEW YORK 5, N. Y.

SUGAR

>

|'

.

v

,

'

,v

.

-

Refined

—

r

.

—

V

V

Liquid

Not

Standardization Is

Legal

Exports—Imports—Futures

Of course, its

purchasing power
is not stabilized.
Gregory stated
it correctly when he

DIgby

wrote: "It is

4-2727

part of the case for the gold
standard that it of necessity guar¬
no

antees

Standardization

stability."

and stabilization of the dollar are

different

two

things.

ference

simplifies the problems
inherent in changes in the pur¬
chasing

power

value

The

given

any

of

the

dollar

v

currency may

of

be meas¬

(b) by the rate at
which it exchanges against other
currencies.
Obviously the latter
power,

in

as

the

13.714

York

p.

58.

607.

Exchange

Cotton

Exchange

Commodity

Exchange,

,,

Board

Chicago
New

Cotton

Orleans
And

of

other

Inc.

Trade

Exchange

Exchanges

of

'

upon

standardized

grains

Encyclopedia

6 p.

Exchange

Curb

York

New

of

pure

dollar

gold is

N. Y. Cotton

the

Social

Sciences,

Exchange Bldg.

NEW YORK 4,
CHICAGO

Vol. 5,

Stock

York

;

New

the pur¬
of the measuring as

turn

of the measured money.

Unless

New

or

chasing power
well

Members

•

or

(a) by its command over
commodities, viz., by its purchas¬

depends

1856

H. Hentz & Co.

of the dollar.

ured

ing

V*

Established

An accept¬

recognition of this dif¬

and

ance

5

21.
27.

coun¬

try into gold at the standardized

Raw

the

1950.
3 p.

this

credits in

by Act of
grains
of
pure

"Federal Reserve Bulletin," December,

4 p.

convert

to

foreigners

of

dollar

now

of

Home Office: Atlanta

their

'

to note that the

It is important

ability

-i

V" u

Dollar.

specific

by

Stabilization
and

In

*

Testing Integrity of

should take away from him
repeal—the dollar is

gress

definitions."
.

another problem.

-

President of the United States still

dollar in sense (1).

construe

to

serve

*

,

grains in the dol¬
35.
Although
the

has the power to vary the price
the unit of account of U.-S. A.-*... of gold "in the public interest"—
"
'A'
dollar
ordinarily
means
a
power
that he should never
dollar in sense (3); 'the' dollar or¬ have been given and which Con¬

$167.4 bil-

Britain is quite

vided by 13.714

Measured in

"Dollar, adjective.

and




be reckoned

to

changing

at

We have standardized the dol¬

lar

gress,

outstanding and in circulation as
of Oct. 31, 1950 is only a small

Deposits

out

the

between

standardize

words

left

up,

"or"

serted

A

follows:

as

therefore, an er¬
premise
when
he - in¬

roneous

/

"I believe these definitions will

•

infinite number

an

fact, in such a society a stand¬
monetary
unit—an un¬

In

Professor

stabilize."

"to
set

reference to money.

letter to the author Pro¬

In his

dollar

'

the Dollar

Defining

fessor

past.4/

exchange values. "To
is
quite
different

or

Fisher

dinarily

Private Wires

and

have

standardize"
from

.

physical (i.e., commodity) sense."3
In his opinion money in the ab¬
stract is
vastly more important

payments

of

prices

per¬

value

than

more

Joss

satisfied

be

(basis of all credit transactions),
out test of solvency, an important
gift medium, and our store of
value, since virtually all our sav¬

which

the

"If

form its function as a standard of

dollar?

exchange.

standard
of

a

Expansion of Money and Credit

/derpoel, Financial Editor of the

economists.

earlier

Fisher wrote: *

sor

able to exchange
will continue to

of being

without

it

:

read and hear? Robert P. Van-

"The

In

;

the late Professor Irving
and

the will to peace,
of ratios
with. They
cannot be wished away or ignored.
ulation growth,

.

.

bank

we

back to statements frequently

dy¬

a

.

dollar", ings are in terms of dollars.

/

•• ///
// ;,v/ '
Much of the confusion seems to

Fisher

much to

the average American.

not

does

in

limitations

namic, non - totalitarian society.
Technological developments, pop¬

.

|

planners who would socialize our
political and economic system, and

;

not used

standard of value but, is

that

unit

-• vary.

United States gold is the

the

"in

maybe 40 inches
time, and 30 inches at
time.
A gallon is a

standardized

"Principles and
of Money and Banking,"
Whittlesey states that,

Professor

time, a yard is not

and

.'The. the pound, and every other goods-; dollar, Standardization here sim¬
only fundamental justification for unit, how much more important is plifies their problem. The British
lar/''
♦/-,;
: '"
having money based on or consist-, it to stabilize the unit of money."5 pound is standardized in terms of
./This is an amazing but very
the United States dollar—in terms
ing of a valuable commodity is ; : indeed we have standardized
helpful
statement.
The
author
of gold.
What the British pound
a
belief that such a requirement our
goods-units of measurement will
agrees
fully with the plea for
buy—its stability—in Great
will help to assure that the'.con¬
but we have not stabilized their

our'

rency,

other

some

book,

Practices

policies. rather than-waste
our
ammunition quarreling over
gold or the definition of the dol¬

protect? Certainly it is

a managed cur¬
bureaucrats,
government

at another

its integrity be

j

his

In

sound

/government.

Advocates of

abstract concept

an

yard of cloth may vary

a

inches today,

36

made by

system that the poli-, sounder financial policies.
But
manipulate at will; how are we going to protect the
the
American
people integrity of the dollar if we • do

*;have lost control
tary

dollar

things,

other

among

time to

from

go

can

that

and

had

-

the

"sound";

have

we

that

will.i, vary,

dollar.

we

on

yard of a given kind of cloth

a

policies essential to the
protection of the integrity of the ;

should
demanding

that

feel

I

of

How¬

the price or exchange value

ever,

price of

They
basic to the adoption of sound

are

policies before

concentrate

all-

pen¬

v

told

longer

•/no

ago;* stroyed.

by law just as a

unit of measurement.

ized

financial

follow

we

measurement

of

unit

yard (or 36 inches) is a standard¬

than academic interest.

more

too much confidence has been de¬

value and
or nothing

-1//are

and

unless

financial

bushel

standardized

is

These are questions of

protected?

reason

deteriorate

sounder

supply or demand for wheat.

The

determination?

be standardized or

policy,
stability.
There

its

maintain

bushel will

change, among other things, with

abstract concept?.. If

can

For mone¬
fiscal controls

their

value of the wheat per

amount of purchasing

mere

a

how

so,

made,

be

should

effort*

it

Is

protect the in¬

have

price or exchange

If

accepted in its

be

practical purposes, the only dol¬
we now have.
I believe that

lar

will

t

heirs receive pay¬

or our

ments.
I 7

insurance

our

are

years

our

to use a

ment if we are to

with changes in the supply or de¬
so, how is it consti-;
tuted? What or whose index is to mand for the cloth. Although the

power?

Our paper dollar is
medium of exchange and, for

than

more

any

satisfied

be

much and what kinds of manage¬

can

"bushel"

in

measured

is

the

stipulated

States' medium

is the United

why it shouldn't
continue to be a good medium of
exchange but I fear its quality

what

half

value

a

e n

protect the so-called integrity
of the dollar. The American dol¬

isn't any

Gov¬
m

am a

to

to

United

States

prac¬

within the limits of sound

and

Roy L. Garis

but

subject

this

they
1914
automobile. Some management is
essential. The question is —- how
dollar

a

would

credit

prices
are customarily expressed—is this
dollar 13.714 grains of pure gold,
as defined by Act of Congress, or
is it a price index dollar, or in the
words of Mr. R. C. Leffingwell—
"a rubber dollar"? Is the dollar a

great deal more in¬
terested in doing anything I can
tically I

every

buying less

our

in

terest

There are

few if any monetary econ¬
omists who wish to return to such

very

tary,

wheat

which

in

unit

pre-World

tegrity of the dollar.

units, yet the

value—this

neo-classical,

I

of

customarily

are

argue

gold standard.

faire,"

commodity in terms
its unit of measurement. Thus

expressed in this country." /•.
'
Hence,
it is our standard of
value.
But is this standard of

American,"

-

prices

to

be said of any

a

simply

not

complexity.4 This
for a "laissez

number and

is

War

greater

become infinitely

in

•

Obviously, the same thing

United
the unit

that

me

is

dollar

which

in

to

seems

States

cies."5

.

purchasing power of our

or

money

fiduciary elements of the curren¬

Whittlesey re¬

R.

hence

and

dollar

level

has

Gregory

E.

properly, the
pf the
of the price

difficulties of stabilization

<

T.

/ Professor

inquiry as to what,
"
./ '
'

my

dollar:

a

"It

of exchange.

literature that

the

be

would

there

lar

read

and in current

and

is

I can see that
considerable in¬

"Academically

for, in the words of Profes¬
sor
Ralph A.

pears,

we

plied to

wrote to the author:

What is

C.

Professor

*

expect a

be

gold.

pure

stated:

and theories of economists and

Prof. Garis reviews opinions

,

1951

Thursday, April 5,

.

allowed to function

ized—today

$230 billion.2
"The
existence of a metallic
Obviously, therefore, the prob-;
standard itself affords some pro¬
lem of what is a dollar goes much
tection against over-issue, but the
deeper than the relatively small*
mere linking up of the
currency
percentage of our monetary sysrl
tern which is in the form of paper j systems of the world with gold
does not prevent the value of the
dollars in circulation as a medium
currency and of gold from falling,
of exchange.
if there is concerted inflation; that
Is It a Standard of Value?
v is,
a
common
increase in the

University of Southern California

'

'

(

GARIS

dollar

proximated $277 billion for. the
year 1950, whereas personal, in-,
come reached an all-time high of

Dollar?

a

By ROY L.
Professor of Economics,

*

.

.

(1430)

'DETROIT

GENEVA,

N. Y.
PITTSBURGH

SWITZERLAND

t

Volume 173

Number 5000

Grass Roofs

.

The Commercial and Financial Chronicle

.

.

Opinion

(1431)

~T

Reflected in Poll

-New Issue

'

Shows "Wall Sheet" looked upon
* favorably,
popularity of
"Welfare State" diminishing and
more

,

controls

over

$50,000,000

and prices

wages

State of California

favored.
"Wall

is

Street"

looked

upon

more
favorably
in rural
com¬
munities today than it was during
the presidential election campaign

-

v

of 1948, in the

4%, 1^2% and l3/4% State School Building Bonds, Series C
Dated May 1, 1951

of

many

nation's

.T h

editors

pressed

Principal

the

at

the

e-

and

mahy

the

ques-

of.

rent'

\

-

>'

i

a n c e

ducted

by

n

a

-

In jhe

jointly*

two

weeks

not

less'than 30 days

Sacramento and Los

so

more

or

than 90 days prior to said date of redemption, in each of

If less than all the bonds should be redeemed, they shall be called

Angeles.

called

less than the bonds maturing in

not

'

f

The

J.

M. Hickerson

:

t

/>;'

v

~

r

*

,

'J

.

year.

'

according to 78% of
the'editors. Only 5% felt that it

■.

on

16%* could
J.

M.

California is pledged

annually, in the
State
rate

favorably and
change. '
'''•

no

on

.

"

\

the
it

was

prices, and

encouraging

editors

their

feel

wages

that

that

communities

40%

other state

as

on

is collected, such

revenue

the bonds

as

the

or

in part, by the districts receiving aid:

will

1

Amount

Yield

told that

"almost

4

/:

1956

7-

4* T'.

$1,800,000

7 1.25%

1,800,000

1V2

1.30%

2,000,000

7, 1.35%

2,000,000

t.

Price

thought these earnings
About 65%

11/2

1,800,000

1961

1^2%

100

were

1V2

1963

These bonds

;v"

"

1.60%

.IV2

1964

i

1.375%

2,000,000

miV

1965

1.40%

2,000,000

13/4<u

1966

1.70%

L45%

2,000,000

'•

'

I960

1967

2,200,000

100

i-jf:

l3/4

I

''f

h

yts

that

approved of it.
f

,

•

h

'w'

V

The Chase Natrona! Bank

The National City Bank

-

Union Securities Corporation 7
Dean Witter & Co.

Weeden&Co.

on

question,* "How"Can
Strain

will

Court

be
of

witnesses"

Keyserling,
Council
and

A.

.

editor

of

A.

A.

10.

Issues,

The

be

Economic

the

We

"adjudicated"

will

Wilfred

Financial

Leon
of

H.

Advisers;

May,

executive

"Commercial

Berle, Jr.,

Forrest,

Incorporated ! /

A. C.AIlyn and Company
;

lawyer,

■

financial

proceedings
over

Cago;

and

of

"judge."

will

8-8:30

be

to

1.95%'V

;

1.95%

1977*

7

maturity

\ 7

The First Boston Corporation
"7

.<•

-

/

Harriman Ripley & Co.
Incoryertted

.

•

7

Goldman, Sachs 4 Co.

C. J.Devine & Co.

Security-First National Bank

California Bank

of Los Angeles

Los Angeles

«

Reynolds & Co.

J.BarthSCo.

B. J.Van Ingen & Co. Inc.

„

Trust Company ofGeorgia

over

7 G.H.Walker4 Co.

F.S.Smithers& Co.

The First National Bank

/

of

-

Andrews & Wellsjnc.

Wm.EPollock4Co.,lnc.

Kaiser & Co.

WTTG-Washington.

t

Shearson,Hammill4Co.

Wood, Struthers Co.

Moncure Biddle 4 Co.

-

Courts 4 Co.

- -

The Ohio Company

Julien Collins 4 Company

Robert Winthrop 4 Co.

-

v'

The National City Bank

Wheelock 4 Cummins

of Cleveland

Cruttenden4Co.

McCormick 4 Co.

Detmer4Co.

Field,Richards 4 Co.

Incorporated

Burns, Corbett 4 Pickard, Inc.

The National Bank of Commerce
of Seattle

H. Y. Sattley 4 Co., Inc.

-

Northwestern National Bank
of

Clement A. Evans 4 Company

Scott, Horner 4 Mason, Inc.

R.D.White4Company

Incorporated

Lawson, Levy 4 Williams

Janney4Co.
",'v

'**.•*

J. B. Hanauer 4 Co.

'/•

»Rockland-Atlas National Bank

U-,

Minneapolis

.,

Laird, Bissell 4 Meeds

<

Bosworth, Sullivan 4Company,Inc.

Hayden, Miller 4 Co.

of Boston

Prescott, Hawley, Shepard 4 Co., Inc. |
*T"

Foster 4 Marshall

Ginthe: 4 Company

Peoples National Bank
;

Charlottesville, Va.

Taylor and Company

>-• ?.

.

A. G. Edwards 4 Sons

The Weil, Roth 4 IrvingCo.

Seasongood4Mayer

>*

■

Wurts, Dulles 4 Co.

/■

*

_

.

Sills, Fairman 4 Harris
Incorporated

t

Stone 4 Youngberg

Davis, Skaggs & Co.

Doll & Isphordingjnc.

7

The Continental National Bank and Trust Company
of Salt Lake

Kencwer,MacArthur4Co.
*

Fred D.Blake 4 Co.

J.

Pohl, partner in Hendrickson & Co., New York
City,
passed away suddenly at the age




.

Memphis

WGN-Chi-

of 55.

A.G.Becker & Co.

'f

E.F.Hutton 4 Company

*

Barr Brothers 4 Co.

'4Incorporated

tele¬

York,'
Eastern

Hero J. Pohl
Hero

:

7

Heller, Bruce & Co.

Hayden,Stone&Co.

•
;■

econ¬

editor

WABD-New

5,
at
Time;

Standard

fYield

.

Glore, Forgan&Co.

(Incorporated)

Ira Haupt&Co.

Keyserling; and John

Carter will preside'as

Channel

'

^

Harris, Hall & Company

; iBCorporated

•

Fulton, Reid 4 Co.

New York
"Times," will act
similarly for Mr. May. J. Howard

The

*}976*

l3/4

and

the

vised

l3/4 *-

"Us'

1.80%

Seattle-First National Bank

Equitable Securities Corporation/

the

omist, .and former Assistant Sec¬
retary of State, will act as "coun¬
G.

1.95%

"ex¬

Chronicle."

sel" for Mr.

2,400,000

of Portland, Oregon

National

Chairman

of

*

of

Current

Tuesday, April

pert

1.90%

1975*

;

■'"* .*• i"

Meet the

The

The First National Bank

7

William R.Staats Co.

f

7

-

*j

Otis & Co.

in

1974*

l3/4

"2,400,000

BIyth&Co.,Inc.

,

N.T.&SA.',;:'*'7'''r 7":'.'" "* 7.
- '.7
of New York
Harris Trust and Savings Bank
R.H.MouIton&Company American Trust Company

Be Aired by "Court."
Defense?"

l3/4

*

2,400,000

..

51.90%

and if issued and received and subject to approval of legality by Messrs. Orr'tck, Dahlquist, Neff &

1

CofTin&Burr

The

1973*

^'

.■,

National Defense to

Best

i.85%

the

said

excessive. Only
their readers dis-:;

they '

V-u"

1.85%

Herringtort, Attorneys, San Francisco, California, by 'the following underwriters:

»

•.

2,400,000

100

1969

v.

,

100

A

1968

.l3/4

m

2,400,000

1.70%

>

„

•f

i%u

2,200,000

",1.65%

1957

offered when,

are

v

Bank of America

;

• V

1.80%

197 r
1972

2,200,000 *

1.55%

<■

*Bonds maturing 1973-77, inclusive, subject to call at par May 1, 1972

v

ex¬

approved of "bigness" in
industry
and" business while
61% said

"

Yieldt

1970

m%

$2,200,000

1962

2,200,000
;

were not

that

Price to
Due

Rate

Amount

1958

1959,t

1,800,000

billion dol¬

a

4

1,800,000

Gen-7

T949 ? profits '.before

1.20%

1955

1,600,000

"

lars" and they were asked if
they

felt

y7.7

,7 7- "7

Coupon

or

Due

Rate

.

10%

thereof to-be repaid*
(

,

*

t

1954

1,600,000

increase

'

earnings

f

authorized by the electo¬

were

amounts

be added)

to

Coupon

or.

Price

1953 "

1,600,000

in ^

place their insurance, other-than life, with private
companies, w
*
'
i

cessive.

in addition to the ordinary revenue of the

sum

become due. The bonds

same

of providing aid for school construction in the State, the
whole

Yield

.4%;;
//VAN t^,.

of

business

would

were

7

Due

•

1,600,000

companies and 65% felt that their

taxes

time

■

readers would place their life
in-/
surance
business
with - private

were

Rate

'

'■/

«84% of the editors felt that their

Motors'

same

\ AMOUNTS, RATES, MATURITIES, YIELDS AND PRICES "77/ .7;

$l,600,00d

in

■ were

-The editors

of counsel will be valid and legally binding general obligations of the State

of the General Fund of the State and the full -faith and creel it of the State of f

terms out

principal and interest

'r.i.'C7 7

I.

-

-

-

*

-readily available *
from both private insurance com¬
panies and the U. S. Government,-'

.

and at the

pay

Coupon

'/ Assuming that all forms of in¬

readers

required to

Amount

during the current year. Only 18%
predicted a decline.
1 *
\
;
surance

"

*

.

readers favor

present emergencies. He said

the

security for deposit of public monies in California.

(Accrued interest

by the fact that 81% of the edi¬
over

.

as

for the punctual payment of both principal and interest.; Under the enabling statute the State'is obligated to collect

7.'7 77

Hickerson,

tors. said that their

as

November 8,-1949 for the purpose

v

President of'
Albert Frank-Guenther
Law, said/
•"W* •that he was
particularly surprised

control

eligible

same-manner

shall be

as

"

more

see

requirements

payable in accordance with their

areas

looked

was

'

legal investments for. Savings Banks and Trust Funds in New York,
California and. certain other States and for Savings Banks in Massachusetts and Connecticut and will be

of California
...

•

rural

the

meet

These bonds, to be issued for school purposes, in the opinion

State". has aiso
drop in popularity in the ■ *

a

will

.

"Welfare

-'rtaken

'

one

Personal Income Taxes undjer existing statutes, regulations and court decisions.

-

'

The American Press

and

agency,

Magazine.

'?;:7

believe these bonds

We

advertising

.

-

any

■opinion of counsel■>interest payable by the State upon its bonds is exempt from all present Federal and State of California

Albert

ther Law, Inc.,

:V

week for

in inverse numerical order, the part

v"-^/r\

Frank -Guen-

;

a

Cities of San Francisco,

1

■

cur¬

survey con-

v

payable at the office of the Treasurer of the State of California in Sacramento, California, of
agent of the State Treasurer, including the agent of the State Treasurer in New York .City..
as to both principal and interest.

duly .authorized

impor-

t

•

and November 1)
any

May 1, .1973 are subject to redemption at the option of the 'State, as a .whole or in part, on May 1, 1972 (but not prior thereto),
interest payment date thereafter, at the principal amount thereof and accrued interest thereon to date of redemption. "Publication- of -notice' -

any

on

tions

,

on

of redemption shall be once

-

•

(May 1

the office, of

at

Bonds maturing on .and after

their

.

May 1, .1953-77, incl.

Coupon bonds in denomination of $1,000 fcgisterable only

ex¬

opinions

'

and.sethi-annUal • interest

option-of the holder

rural

editors.
•

Due

„

opinion of

April 3, 1951

*

•

j Magnus 4Company
H.E.Work4Co.

Walter, Woody 4 Heimerdinger
Hooker 4 Fay

Thornton, Mohr 4Co.

Wagenseller 4 Durst, Inc.

-

City

Stern,Frank, Meye. 4Fox
C. N. White 4 Co.

7

8

The Commercial and Financial Chronicle

(1432)

Montgomery Street, San Francisco 20,

nia Co., 300

COMING

Dealer-Bioker Investment

Columbia

Investment

send interested

to

April 9, 1951 (Boston, Mass.)

61

parties the following literatures

Graphic Stocks—January issue contains large, clear reproduc¬
tions of 1,001 charts complete with dividend records for the
full year of 1950, showing monthly highs, lows, earnings,

Security Dealers Asso¬

capitalizations, volume

"Information Please!"—Brochure explaining about

April 13, 1951 (New York City)

"Security Traders Association of
York

Annual

Dinner

the

at

Toronto

of

members

on

ada

dinner

the

at

Speculation in Convertible Bonds & Preferreds

New

F.

Childs and

Company,

Inc.,

Banks—Tabulation

&

of

1950—How¬

year-end

V

Orleans, 12, La.

the Maketewah

at

be

<ll©

preceded

cocktail

party

Country Club

by dinner and
for out-of-town

formula

Port

Club

annual

v,i

V-

Aluminium

June 8, 1951 (New York; N. Y.),

?Bond Club

;

,

*

•

of New York

Box

..

27th

*

♦

Limited—Annual

'•

*

■

6090, Montreal, Que., Canada.

America

'

■

v

v

Day at the Sleepy
Country Club, Scarbo¬
rough, N. Y.

&

investment
of

Armco

Dealers Associa¬

Canada

Convention

-Audio

Bulolo

Investment Traders Association
«£

Philadelphia

Summer

Corporation

Steel

—

Complete: 1950

Nordeman

report

:

y

...

Dredging,... Ltd.—Memorandum—Aetna Securities

-

Corp., Ill Broadway, New York 5, N. Y.

Outing

C. I. T. Financial—Review—Ira Haupt & Co., *111, Broadway,

«md Dinner at the Manufacturer®

r

6, N. Y. Also available is a brief review of New
York, Chicago & St. Louis, and an analyses'nf Central Ver¬

Ha.

Seattle 4, Wash.

-

Trust Co. of New

Co., 61 Broadway, New

v

New York

Cblf ahd Country Club, Oreland,

>.

•,

York—Memorandum
York 6, N. Y.
Riverside Cement Company -i- Card memorandum — Lerner &
Co., 10 Post Office Square, iBoston 9, Mass. Also available is
a memorandum on Gear Grinding Machine Co. and on Seneca
>. Falls Machine Co.
i
Rudolph Wurlitzer Co.—Analysis—Raymond & Co., .148 State
•..* Street, Boston 9; Mass. .-Also available are analyses of Vernejr
Corp., Simplex Paper, U. S. Thermo Control, Maine Central
Railroad, Sanitary Products and Air Products.
Signode Steel Strapping Company—Analysis—Walston, Hoff¬
man
& Goodwin, 35 Wall Street, New York 5, N, Y. Also
available is an analysis of Trans World Air Lines, Inc. and

^

—

v.-

Development.

annual report—Pfeiffer
Avenue, Detroit 7," Mich.
Development, Ltd.—Analysis—John R. Lewis, Inc., 1006

C. E. Uterberg &

/

Devices, Inc.—Analysis—Peter Morgan & Co., 31 Nassau

Gold

Co.,

Company—1950

Brewing

Second Avenue,

;

annual

and Mission

Public National Bank &

Corporation, Middletown, Ohio.

Street, New York 5, N. Y.

.

(Philadelphia, Pa.)

Steel

Armco

v

-at

Jasper Park Lodge.
Anne 15, 1951

Oil * Corp.—Analysis—Bruns,
Co., 60 Beaver Street, New York A, N. Y, V

&

Oil—Memorandum—Hirsch & Co., 25 Broad
4, N. Y: Also available are memoranda

Corp.

Mission

Placer

\•

Marietta

Anderson-Prichard

Canada)

Berwald

N. Y.

Brewing Company, 3740 Bellevue

.

June 11-14, 1951 (Jasper Park,

Company—Circular—Grady,

Western

Pfeiffer
;

Company—Analysis—Republic Investment ;
Co., 231 South La Salle Street^ Chicago A; 111.
Also avail-"
able is .an analysis of Cenqo Corporation..
;
'
f

Field

Hollow

tion

on

Limited,

M. Byllesby and Company,
Chestnut Street, Philadelphia 2, Pa.

Street, New York

>

report—Aluminium

Street, Chicago 3, 111.

30 Pine Street, New York 5,

Pacific

of April 1

as

1500

Paper

Oxford

—Geyer & Co., Inc., 63 Wall Street, New York 5, N. Y.

,

Memorial Day outing.

annual

Incorporated,

Inc.,

Gernon,

Aviation, Inc.—Analysis—Dayton &

Company—Analysis—H.

Osgood

long-term operation—$5.00 for four months, or

Huron, Mich.

American

105 South La Salle

Forecasting—Trend-following

Utility Stock Analyzer—Comparative tabulation

May 30, 1951 (Dallas, Tex.)
Bond

for

Without

N. Y.

Company—Report—Loewi & Co., 225 East Mason

Street, Milwaukee 2, Wis.
North

$1.00 for next two discussions—Baker's Investment Timing,

guests, May 24).

Pallas

Investing

40

Avenue, New York 10,

son

to

Progressive

Co.,

Life Insurance Co.—Annual report to policy¬
1950—Metropolitan Life Insurance Co., 1 Madi¬

for

National Tool

yield and market performance over an 11-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4, New York;.

Municipal Bond Dealers Group
of Cincinnati annual spring party

&

Company—Special

Power

holders

parison between the 30 listed industrial stocks used in the
Dow-Jones Averages and the 35 over-the-counter industrial
stocks used in the National Quotation Bureau Averages, both
as

Memorandum —
Street, Chicago 3,

—

analysis—Kalb, Voorhis
York 4, N. Y.
Corp.—Memorandum—Auchincloss, Parker & Redpath,
15th Street, N. W., Washington 5, D. C.

729

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

Club of Maryland.

Co.

System — Data — Oppenheimer,
Exchange Place, New York 5,

Hydro-Electric

Metropolitan

1

Baltimore Security Traders As¬

May 25, 1951 (Cincinnati, Ohio)

115 Broad¬

Co., 25 Broad Street, New

Mead

as

sociation annual Spring outing at
the Country

&

New York.

Street, New York 5, N. Y.

Orleans

New

111.

Shearson, Hammill

—

Products

Cellucotton

Broeck

Vanden

ard, Weil, Labouisse, Friedrichs & Co., Hibernia Building,

May 18, 1951 (Baltimore, Md.)

Memorandum

—

Inc.—Brief report—Goodbody & Co.,

International

Interstate

Outlook—Analysis—C.

1 Wall

King Edward

Hotel.

Co.

Swift, Henke & Co., 135 South La Salle

request).

Market

ment Dealers Association of Can¬

Electric

International

put-and-call

—Sidney Fried—R. H. M. Associates, Dept. C, 220 Fifth
Avenue, New York 1, N. Y.—$2.00 (or free descriptive folder

Invest¬

Company—Analysis—David A. Noyes & Com¬

Illinois.

Investment &

May 9, 1951 (Toronto, Canada)

Meyerhoff &

111.

New York 6, N. Y.

way,

New York.

Waldorf-Astoria Hotel.

Dempsey-Tegeler
14, Calif.

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

options—Thomas, Haab & Botts, 50 Broadway, New York 4,

-

—

208 South La Salle Street, Chicago 4,

pany,

edition, all for $25.00—F. W. Stephens,
Street, New York 5, N. Y.

William

Memorandum

Co

Company—Bulletin—Freehling,

General Electric

Glass Fibers,

15

Also available is an an

N. Y.

Co., 120 South La Salle Street, Chicago 3,

and up-to-date current

Philadelphia Securities Associa¬
tion luncheon.

Oil

Wyoming

General

and

Share—Analysis—E. F. Hutton & Company,

&

Products

Ekco

Curb

York Stock

—

Co., 210 West Seventh Street, Los Angeles

virtually every active stock on the
Exchanges—single dopy $10.00;
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic Stocks, 1924 through 1935; 1936 through 1947

April 12, 1951 (Philadelphia, Pa.)

New

Bond

on

New

,

Memorandum

—

alysis of Stone & Webster.
&

ciation cocktail party and dinner
at the Jokake Inn.

Corp.

Phosphate

&

Broadway, New York 6,

Franco

April 11, 1951 (Phoenix, Ariz.)
Arizona

Electric

pleased

Boston Investment Club Dinner

Meeting at the Boston Yacht Club.

120

Co., Gulf States Building, Dallas 1, Texas.

&

Beer
*

It is understood that the firms mentioned will be

Sulphur

Continental

Recommendations and Literature

Field

Calif.

System—Memorandum—Sutro Bros. & Co.,

Gas

5, 1951

Broadway, New York 5, N. Y.

EVENTS
In

Thursday, April

.

Co.—Memorandum—First Califor¬

Utilities

Pacific

California

.

.

mont Public Service Co.

Railway Company.

Pacific

Northern

Gas Company—Complete annual
Southern Natural Gas Company, Watts Building,
Natural

Southern

V.\
report—
Birming¬

ham, Ala.

This

announcement

is not

Standard

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

an

The

Company
of Indiana—1950 annual report—
Oil Company, 910 South Michigan Avenue, Chicago

Oil

Standard

\

80, 111.

.

Gas Corporation—1950 annual
Suburban Propane Gas Corporation, Whippany, N.
Propane

Suburban

report—
J.

Incorporated—Bulletin—Remer, Mitchell & Reitzel,
South La Salle Street, Chicago 4, 111.
Tennessee Gas Transmission—Data in current issue of "Gleanings"—Francis I. duPont & Co., 1 Wall Street, New York 5,
N. Y.
Also in the same issue is a list of 40 selected stocks
Tampax

•

$12,000,000 T"

Worcester
First

■

Inc., 208

County Electric Company

1, 1951

Due March

war

Beaver

Mortgage Bonds, Series B 3M%, due 1981

Dated March

for

peace.

or

Electric

Westinghouse

Street, New

1,1981

OTIS L

Watson

Street.

Southern >. Production
SHIELDS

&

COMPANY
Active Market

WEEDEN

A

CO.

INCORPORATED

COOLEY L COMPANY

WM. E. POLLOCK A

THOMAS A COMPANY
E. M.NEWTON A COMPANY

CO., INC.

STERN BROTHERS A CO.

CLAYTON SECURITIES CORPORATION

*

CHACE, WHITESIDE, WARREN A. SEARS
INCORPORATED

Troster, Singer & Co.
.Members: N'. 'Y.

74

Security Dealers Association

Trinity Plac* New York 6,

Telephone:- HA 2-2400.

Teletype NY

Private

April 5, 1951.




..

Chronicle)

L. Blauer is now

(INCORPORATED)

AMERICAN SECURITIES CORPORATION

(Special to The Financial

>

Stock Exchanges.

INC.
CO.

.

SAN FRANCISCO,

liam

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

HALSEY, STUART A CO.

Chronicle)

BRIDGEPORT, Conn. — Louis
Calif.—Wil¬
associated Hilzinger,
Jr.
and
Harold L.
with
Dean
Witter
& Co., 45 Sistrand, Sr. have joined the staff
Montgomery Street, members of of T. L. Watson & Co., 120 John
the New York and San Francisco
:

Price 101.54% and accrued interest

EQUITABLE SECURITIES CORPORATION

Two With T. L.

Dean Witter Adds
(Special to The Financial

The

Corp.—Analysis—H. Hentz & Co., 60
York 5, N. Y.

.

wires to

N. Y.

1-376; 377; 378
-

Clevdaad^-JDenver—Detroitr-JPblladelphlar—Pittsburgh—§t. Louis

Volume 173

Number 5000

The Commercial and Financial Chronicle

...

(1433)

FHA's Current Operations

FHA's Current

Operations and
The Home Mortgage Industry
By FRANKLIN D. RICHARDS*

Commissioner, Federal Housing Administration

official expects that

current credit restrictions

dwelling units started
this year by approximately one-third of the 1950 total. Says
1951 aggregate of 850,000 starts is not far from the 1947 total
which at that time

deemed notable achievement

was

or

builder

last few years.

The necessity of

greatly needed by the

are

financing

gage

lower

income

providing mort¬

for

middle

and

families

is, in my
well as Section 203(d) of Title
II, opinion, particularly important at
this time. During a recent trip I
are
becoming operative in many
sections of the country. I have re¬ took through many States, I found
cently

seen

as

that

in many parts of the

been equaled since the mid-twenties.

not

mortgagor

let me state that Title VIII, the age American family. This means
Military Housing provisions of the suitable housing within the paying
National Housing Act, is produc¬ ability of such families.
ing a very large volume of excel¬
Small Mortgage Needs
lent housing
accommodations

Likewise, Section 8 of Title I,

it had

as

or

in order to get his business

military.

and other factors will reduce number of

borrower

Now, regarding our operations ing its efforts to produce housing
for minority groups and the aver¬
under
present
conditions—first,

which

Federal housing

industry continuing and expand¬

in

several

Sees possibility of
tighter mortgage money, accompanied by keener competition
for loans, and expresses hope that this situation will not result
in practice of former years of paying premiums in order to
obtain business. Reviews current operations of FHA and com¬
ments on proposed amendments to National
Housing Act.

there

areas

continued resistance

was

been done

sometimes

9

as

has

during the

'

Construction Money Tight
While there

seems

to be

an

ade¬

quate supply of funds for perma¬
mortgage
financing,
con¬
struction money has tightened. If

nent

this situation continues to

it

can

which

plan

create

an

mortgage

now

to

acute

develop,

condition

lenders

avoid.

should

In many

in¬
it is the uncertainty of
securing construction money that

stances,

the part of
country Title VIII, Section 8, and
has caused builders to rush out
203(d) projects and I am very mortgage lenders to make loans
and pre-purchase materials
under Section 8 and Section
that
happy to see the industry produc¬
203(d)
ing such excellent housing accom¬ because of the low amount of the they may not need for weeks or
It is my sincere belief months to come. When lenders re¬
modations for military use, as well mortgage.
that it would be to your advan¬ quire materials to be on the site
.
as for the
average American fam¬
tage to give study to the internal or available before making a con¬
ily.
organization of your companies, struction loan, they are making
Although the new Section 213,
This Regional Mortgage Confer¬ other existing
factors, the number
whereby you can make and serv¬ shortages more acute and disrupt¬
Cooperative Housing, is; a little
ence takes
place at a time when of dwelling units started in 1951
ice these low
ing the orderly flow of building
less than a year old, more than
mortgages efficiently
uncertainty and apprehension will be approximately a third less
and on a profitable basis.- I am materials.
$428 million of applications for
about the world situation have af¬ than in 1950. The best estimate at
confident that the volume of busi¬
With a reduced volume of busi¬
commitments and eligibility state¬
fected
the present time is that the cur¬
every
ness is greater in this field than
ness
prudent lenders will natur¬
,

part

the

of

home

rent

year's figure may be between
800,000 and 850,000. This is not far

The

economy.

financ-

from

the

1947

volume

of

846,000

k

ing industry is
particularly
sensitive

units, which at that time'was
sidered

to

High

labor,

concern

tions have ai¬
d y

Franklin D. Richards

been

in

of

be

accurately
other factors

will

orders

be

re¬

issued,

However, in looking at what has

degree, and there is little doubt
they will become increasingly

that

also

doing

been done

far this year, we can

so

only conclude that home produc¬
tion is continuing at a

rather* high
evident.
* ••
level. FHA starts in January were
Let me begin by saying that I
25,435 units, as compared to 27,065
am not here to minimize our prob¬
in January, 1950.
The February
lems, but to discuss ways and
comparison is1 16,500 starts this
means of coping with, the disrup¬
year
to 25,284 last year. Total
tive forces
that generate
these
starts, with all types of financing,
problems, and over which none of
were
83,700 in January —» even
us can have control.

elsewhere:

ally give

servicing which is of such impor¬

At the present time
records show that about 10%

substantial of the
mortgages
business under Section 207, Rental
are running under
are

a

Housing.

fective in

on

new

lenders

ap¬

Improvement loans
are proving most ef¬
maintaining the housing

study

To clarify FHA's role under the
restricted operations, let me

ly

review

few

a

brief¬
with

matters

which most of you are familiar.
From 1946 to the middle of 1950,

the number of homes built in this
•

country each

rapid rate.

year

increased at

a

The 989,000 privately-

higher than last
starts

ary

8%

were

year.

tunity

volume of mortgages made avail¬
able last
year, and I feel that it is

is, in my opinion, not only good
inventory of the country in good business but a definite challenge
It is estimated that the for private industry to show that
volume

Title

of

insurance

I

American

typical loan

families

was

it

the

and

only $354.

can

of the

meet

the

market

demands

ever

This

the

tremendous

not

unduly optimistic to say that
the residential mortgage
industry
well be in

may

at the end

even

better order

of 1951 than it is

f Mortgage money for permanent

striction

of

competition we hope
is very encouraging.
I wish to that it will not result in the prac¬
emphasize the desirability of the tice of paying a premiuni to the

Housing Act
Because

housing

of the current stage of-

legislation,

I

The Febru¬

Continued

on

year.
This record
high starts in January and Feb¬
ruary of this year is a reflection
of the high filings of applications

months of

the current volume of

in

than

1,350,000 units started

1950.

v

applications,
time

of

some

and

the

demands

of

tional defense threatened to

not

at

Price

vol¬

a

construction,

which further complicated the sit¬
uation.
:
On

July 18 the Federal Housing

of line, barring
change in defense

radical

requirements.
Credit Curbs Flexible
We do

ditions

131,190 Shares Common Stock

know, however, that con¬
change and that the

can

Administration
restrictions to

applications
-

ance

announced

be effective

for

mortgage

Production

Act,

on

all

insur-

controls

: were

also applied to uninsured
home loans under the provisions of

Regulation X of the Federal Re¬
serve

Board effective Oct.

established

(Par Value $5 per share)

def§pse

in

Paducah,

of

credit

12.

curbs

to

Subscription Price $31

credit

new

These shares

are

Kentucky,

meet

per

sharei

rnoe

con¬

struction necessary to the national

being offered by the Company to its Common Stockholders,

subject to the terms and conditions set forth in the Prospectus. Subscription
Warrants

urgent

expire at 3 P.M., April 17, 1951.

needs.

this

At

the Defense

credit

from

and Savannah

filed after that date.

With the passage of

,

different

regulations for specific

River, South Caro¬
credit lina, are examples of modification

J

100%

out

appear

com¬

rush to buy ma¬

new

*

plus accrued interest

850,000 units does

were at a very high credit curbs are flexible. The ac¬
Then the outbreak of war tion already, taken to permit terms

terials and start

of such

Twenty Year 3lA% Debentures, Due April 1, 1971

building costs

rtn Korea caused

any

of the Prospectus.

na¬

pete with home building for cer¬
tain
critical materials. Over-all

point.

offer to buy,

an

means

THOMPSON PRODUCTS, INC.

this

estimated

the

of 800,000 to

ume

evident

solicitation of

offering of these securities for sale,

home

new

indications

that

are

During the spring of 1950, in the
light of current events, elements
danger began to be apparent—
serious inflationary trends were

an

$15,000,000

filings of last fall, together with

-more

or as a

offer is made only by

1950.

in 1949 broke all previous records

surpassed by the

buy,

as

during the last six

and was in turn

units

to

be construed

of

With the backlog of accelerated

non-farm

offer

securities. The

to

give

you

point I
a

very

should like
brief

report

to
on

FHA

operations. To date the Ad¬
ministration has insured more than

The

Representatives of the Underwriters

may

offer shares of Common Stock

during the Subscription Period at the prices and pursuant to the terms and
conditions set forth in the Prospectus.

$23 billion in mortgage and prop¬
erty improvement loans made by

On

private lending institutions. Of
same day the FHA amended
this
insurance written the out¬
July credit restrictions to make standing balance is about $12%
its requirements conform insofar
billion, or a little over half. Losses
as
possible with Regulation X.
on the total amount of
mortgage
the

its

On Jan.

12

multi-family rental insurance written are just around
brought under credit 3/100 of 1%. At the present time
the Federal Reserve our capital and reserves amount
Board
through
the revision of to around $250 million. Dividends
Regulation X, and simultaneously paid to mortgagors have exceeded

projects

ties

in

may

be obtained from the undersigned only in

in which the undersigned may

legally offer these securi¬

compliance with the securities laws of the respective States.

by

again the FHA amended its multi-

family rental restrictions to
form to
i

those States

were

control

Copies of the Prospectus

Regulation X.

I

1951 Housing Starts

v;

It is expected that
current

credit

-

as

a

Rather than

promises

as

an

uncertain

prefer to

say

to

period ahead,

*Ah

you

that

we

will

and

address by Mr. Richards before
Mortgage Bankers Association Conference, New York City, March 27, 1951.




Shields &

I

put forth every effort to maintain
the

Smith, Barney & Co.

a

'satisfactory

with conditions.

record

McDonald & Company

to what

the future role of the FHA will be
in

result of

restrictions

$27 million.

con¬

consistent,

April 4, 1951

Company.

only

cipal amendments to the National

76,000 units—about

started

financed

as an

or

circumstances

no

shall

mention briefly some of the prin¬

;y

This is under

now.

Proposed Amendments to

financing may in some instances
become tighter and yet competi¬

before.

absorb

country.

During the year 1950 much more
housing for minority group occu¬ tion for loans may become keener.
pancy, both sale and rental, was While we would not favor the re¬
produced than

to

under last

for financing

proper

The cutback will also give
of the country an
oppor¬

.

;

to

for $9,450 or less. To meet this
demand in the lower income field

are

condition.

lion

tance.

homes

$5,800 and

added

proximately 65% of the mortgages

Property

availability
brought direct benefits to 1% mil¬
labor, high costs,

tightening of construction money,
as well as other economic
changes.

some

field

our

We

1950

the

as

to whether further

as

strictive

restric¬

felt

such

of materials and

and

re a

cannot

because

involved

government
credit

alone

gauged

and

our

offices.

under Title I

The ultimate effect of the credit
curbs

uncer¬

tainties

as

mid-20's.

costs, short¬
ages of some
materials

con¬

achievement

it had not been equalled since the

international
events.

notable

a

ments have been filed in

on

>

»

page

32

•10

The Commercial and Financial Chronicle

(1434)

$7.85

or

Pennsylvania Brevities
substan¬
corporation taxes
-were in effect during the last half
of 1950, annual reports of last
year's operations thus far pub¬
lished indicate that many Penn¬
sylvania companies achieved re¬
sults highly satisfactory to man¬
agement and stockholders.
the fact, that

Despite

tially

•

higher

In

extensive

instances,

many

capital expansion programs begun
in 1945 and 1946 were sufficiently
advanced to be reflected

•

in lower

effi¬
cient
production methods.-„ Such
benefits, which serve to offset
higher taxes, wages and material
ratios

operating

costs,

more

expected

be

may

and

As for

1951,

with

references

which

cannot

taxes

is,

of

there

a

of

assumed. Nor

basic

that

those

operating

of

(other

costs

may

a

effected

be

economies

im¬

and

efficiency)

proved
mains

the

very

disruptions
critical

favorable.

to

and there re¬
real prospect of
by

caused

shortages

materials.

Jones

Laughlin

&

Steel

PITTSBURGH—With- sales

best

year

its history. Net in¬
$39,744,000, or $14.72

in

rose

to

come

pointed
out'that a high level of produc¬
tion is vitally essential to the suc¬
cess of our national defense pro¬
Toward this end, much of the

gram.

"control"
legislation
is
flexible in its application.

Production

for civilian

consump¬

tion has been and will be further
cutback in favor of providing es¬

sential war needs, but not to the
of-

extent

bringing about" sub¬
living conditions.

standard

transition. ;from peacetime
production has thus
far taken place without serious
.dislocations. It is thought that by
the third and fourth quarters of
; this year defense orders,
direct or
The

)

to

wartime

——

—.——..—

I

has been

expended for capital im¬

1946 and plans

provements since

$200,000,000 in the next two years.
Company's present large backlog
includes many defense contracts. -

ii

i

j j

PHILADELPHIA—Sun
its 5-year

Oil

Co.

of

1950/Net

for

corded

creased

income

in¬

approximately $11,000,000 ;

to

$36,291,498, equivalent to $6.02
per common share, compared with
earnings of $4.57 per share in
Gross

1949.

pany's

largest
only

exceeded

peace-time total,
by the war-time

1944.

year

*

/

1421 CHESTNUT STREET

.

LOcust 7-6619
==a

Pennsylvania Water
& Power Co.

of Penna. Personal Property

This
j

Company's

1950

annual

"Tax

interested

acre

in

"SPECIAL SITUATIONS"
for income and appreciation.

BOENNING & CO.

$8.91

President,
expresses
doubt that prices of finished

- small

be further increased

can

encountering

Philadelphia 3, Pa.

Cambridge B(dg. 3s 1953
A. M. Greenfield 5s

*.

.1

"

#

;

.

Budd Co..

steel

1954

Lippincott Units

Talon Inc. Preferred

company

for

new

With

fewer
1949. The

on-

$6,000,000
construction in 1950 and,
about

spent

according to Otto Haas, President,
will spend an additional $10,000,-

are

largest

chemicals, metals, rubber, plastics,
glass, food processing,

by far

reached

Sales

$290,409,-

record

a

the

annual

At

Backlog of orders has risen to

approximately $215,000,000 com¬
pared with about $39,000,000. a
year
ago.
Railroad orders now
constitute only 32%
of business
booked and it is thought that this

of

$18,425,800 was- United
Gas
Improvement"
Co.
brought through to net, equivalent -V stockholders, to be held May 7,
to $5.10 per common share.
Percival E. Jackson, of New York,
which

of

583,

Although the automotive indus- y will
try accounted for 85% of the com- » that

offer
the

a

resolution

company

can

I-T-E Capital Increase

PHILADELPHIA—At

this

it

year

ported

asked'to approve an
increase in indebtedness from $1,Co., will

a

that

passenger

in

main

several

shares by $13.68* each.

orders-for

carrier^'

Management

equipment will! re-"

car

substantial

volume ! for

years.

holders

*

to

is

t;; r

500,000

1950

$13,600,000

rose

to

15,000 to

to

au¬

preferred

30,000, ,par

of - the preferred is
nrftcnntiy outstanding. According
to W. M. Scott, Jr., President, the
company
needs more money to
$100.

None

business.

conduct

its

unfilled

orders

at

Backlog

of

year-end ;was

$32,045,175, over twice the amount
of a year earlier.
/
*

y

Tyson & Go Opens
Faced

equivalent" to

from

in

reject the resolution.

Baldwin-Lima-Hamilton
with

Corp.

number of

a

New York Office

grave

Hugh J. Devlin and Alton BlauNazareth
Cement
Co.
for
1950 a year ago, the
.* ner are opening a New ;York offiqe
reached a new high of $7,366,128,I face" in the affairs of the former ' at 37 Wall Street for Tyson & Co.,
resulting in earnings of $4.00 per Baldwin Locomotive Works is an^ Inc.* of Philadelphia. There will be
NAZARETH

Co.

increase

and

$3,500,000

an

y

••

ma¬

»K

■

to

shares

stock¬

asking

be

thorize

're- * son's calculations, would increase
the book value of the remaining
profit. Budd management

believes

special

Circuit Breaker

of I-T-E

holders

division

railroad

a

meeting to be held May 28, stock

-

company's

ft

ap¬

a
distribution
would
be
backlog of defense - such
totals over $110,000,- equivalent to a" dividend of $12.77

now

desir¬

more

a

ft

ft

pany's sales in 1950 and the out-' proximately $20,000,000 of port¬
look for this type of business is* folio holdings to present share¬
not presently clear, company re- «■ holders. Mr. Jackson figures that

These

to

reduced

be

able ratio of about 20%.

providing

distribute

and ord¬

nance.

Pie"

meeting,

automobile

and truck manufacturing

ft

the

Pass

lumber, plywood
petroleum,

and wall-board, paper,

consumers.

"Please

hydro-electric power,
and sewage, mining

quarrying,

and

the

plants

ft

reported larg-'
profits in its history. ;,

available.

are

in

share

—

of

sales

Gross

problems only

the 154,749 shares of out¬

on

standing

common.

This compares

alyzed
: lished

in

short a time as
current "about-

•

article pub¬
Philadelphia "In¬

recent

a

the

by

so

a

direct wire connection

New

between

York * / and':' Philadelphia

through Straus &Blosser.; " /vy,;/'
• **.*..,/
per share reported j for • quirer."
y*' •' v J.j.
Although
the
important
Until recently,
about 70% of
question of legalizing the absorp¬ Baldwin's business originated with*
With Walston Hoffman
tion of freight charges by cement. the railroads and
consisted. prin- BEVERLY HILLS, Calif.—Miss
companies
where
necessary
to cipally
of the
manufacture of Chris La Touf has been
tributed favorable results to abil¬
appointed a
meet competition is still pending
steam locomotives many of which •
ity of company to supply nearly in
registered representative in the
Congress, it is felt that the were for export. Due to dollar *
all* the increase in refinery re-Beverly Hills office, 332 North
position
of Nazareth has
been scarcity and currency devalua¬
quirements from its own crude '
Camden Drive, of Walston, Hoff¬
strengthened by the large indus¬ tions, the foreign market has vir- ;
man & Goodwin, members of the
production* to a higher sales vol¬ trial
expansion contemplated and. tually evaporated.
ume
achieved with a relatively
New York
Stock Exchange and
under way in the company's near¬
In casting about for a means of
small increase in operating ex- ••
by service area.
other principal stock and com¬
diversifying its products and elim-f
penses andClQ^fe fact that Vene- "
A special meeting of the stock- zuelan operations contributed to
inating the peaks and valleys of modity exchanges.

previous

years.

with $3.03

;

1949.

"

-

holders has been called for May 28 "

said,

at

letter

stockholders

to

"Production

capacities- have
last

which

time

five

and

both

if

mon,

in¬

will! be,

tive

is

an

-

com-.

new com¬

replace

will

Active

repre¬

preferred, retired in 1950. It.

not

management's

sale

at

this

intention

common

Maintained in all

to

stock! for

i

time.

pre¬

pared, Mr. Colley stated, to meet
the requirements arising from the

PHILADELPHIA
-Qualifies As "Growth" Col

-

emergency.
Engineers \ PHILADELPHIA—Management
have estimated company's reserves .of Warner Company,
producers of
of domestic and foreign crude oil sand, gravel/ central-mix
concrete,
at

507,000,000 bbls. and
gas

of

trillion cubic feet.
-■

-

*

_

National

Steel

Co.

«~*

Members Phila.-Balt. Stock

Exchange

Pennsylvania Bldg., Philadelphia
N. Y. Phone
COrtlandt 7-6814




pany

"growth" com¬
.in respect to the provisions

by

—

New

National

tion,

"highs"
Cor¬

Steel

shipments,

sales,

ings, employment and
ments. Total sales of
up

net
wage

earn¬

pay¬

$537,024,673,

$113,131,828 for the

duced net earnings of

year,

-

Profits Tax iaw.
the
"past-earnings",

of/he Excess

'

poration in 1950 included produc¬

Samuel K. Phillips & Co.

limestone and limestone products,
has disclosed
that the company

Based

recorded

BANK STOCKS

has qualified as a
*

*

PITTSBURGH

VhH

reserves

at slightly under two

Trading Markets

issjue of 7 % cumula-.

offer additional

tion."

well

$10. The

authorized,

sented by an

under the stress of keen competi¬

is

par

shares of

the capitalization formerly

direct result
of large capital expenditures made

industry

100,000

stock,

mon

refining
been,

years—the

oil

approval

sought for the authorization of

■

additional

Colley's

Pratt'Read" Co. Common

375

water-works

In .1950, Budd Co.
est sales and

000.

per'share; compared

natural

PH

ing, aviation,

are

refractories,

of

users '

and

customers

our

national

Teletype

going
road
building, earth moving, shipbuild¬
representing

industries

to

For this
reason,
our
company
is largely
;; dependent, upon
activity of the
iron and steel industry."

sistance.
*

iron

•

re-r the

buyer

of

thousands

and the

diversified products are now

tract at Morrisville.

Sales

—

$5,115,877,
or' $6.09
shares outstanding in

The

Leeds &

coast

build a
on a 58-

to

Eastwick,

creased by about one-third in the

j

an

1949,

recently ac¬

more

extending, from coast to
company's broadly

plants

has announced

company

contracts
include \a per share. His resolution contains
of' variety of items- including parts * an alternative ^suggestion under
Rohm &
Haas, • chemical' manu- ; for-tanks and jet engines, am- ■ the terms of winch the portfolio
facturersj rose to a new high of munition components, truck cabs, securities would be sold and the
$83,272*646 in 1950, compared with cargo bodies, wheels, hubs and ' proceeds * used to acquire U.G.I,
stock in the open market. This
A
$62,422,792 a year earlier. Net in¬ drums.
come
increased to $7,664,915, or
.Last .year, for the first time,: procedure, according to Mr. Jack¬
PHILADELPHIA

report

makes interesting reading for
investors

$71,930,235,
over

his

and has

Corp.

quired the Austin-Western
Co.
Enlarged facilities now include

plants in the United

will
plant to cost $3,000,000

with
41% to $5,192,248,

up

equivalent

company's profits'for 'the' first
time, as contrasted with losses in

Common Stock

Free

that

new

-

that

with

.

e

/

mines and 29

States and Europe,

in

Last fill the

consolidated its business
of the Lima-Hamilton

company

near

"This proposed new plant will
$6.22 per common enable us to better serve all our
share. This compared to $4.37 per - steel-producing customers in this
share reported for 1949. Joseph. L. : area,"
Greene
said.
"Although
income

net

orders

Co.

Haas

&

$13.09
per common share, according to
the
company's
annual • report
which listed production, stiles and
profits at new all-time highs.
Robert H. Colley, President, at¬

Riverside Metal

j

reported

and

ports that its

*

Rohm

Co.

HERBERT H. BLIZZARD & CO.
;

of,

$495,529,646 represented the com-;

Atlantic Refining

A. B. Farquhar

i

income

operating

Net income of Atlantic Refining

Bearings Co. of America

j

of

49%

of

ex¬

program

pansion
and
modernization :of
facilities* costing $206,000,000, for
the
very
favorable results re¬

terials

American Pulley

j

sales

record

..increase

•-

credits

$40,841,508,

•

Co.

in

.

.

solution

its

found

the form of mergers.

of steel. Floyd L.

source

new

1

Leland Electric

r

Sons

&

Baldwin

fractories

James

industry;

without

Sun Oil Co.

E. & G. Brooke Iron
.

Lees

the

products

*

c

in

some

*

*

*

000 to $12,000,000

We solicit inquiries in
,

demand

share, compared with
$22,248,000, or $7.99 per share, in
1949. Approximately $190,000,000

competition.

stiff

would

progress,

Greene, President of General Re¬
Co., which. operates 43

in

cessive price rises

per common

present

'quite

margins

raw

sharply

in

industries

"satellite"
the

materials increased
1950, a series of suc¬
protected profit
without curtailment of

pet

was
found to be "well
populated," and progress, if any,
womd have to be achieved against

dustry

bring about the location of many

Co.

Sons

&

Although the costs of basic can-

new

a

the

of National Steel Co. at Paulsboro,

up

high total
of $487,451,000 in 1950, Jones &
Laughlin Steel Corp. reports the
to

Lees

that

$400,000,000

plant at Morrisville,
Penna., and tne $200,000,000 plant

both

considered

business, the company

expansion of its heavy machinery
division. Here, however, the in¬

Steel

J.,

are character¬
railroad, equipment

the

of

istic

#

the

of

Thursday, April 5, 1951

.

production which

"Satellites"

assumed

been

has

S.

N.

James

$101,405,000

U.

Corp.

,

On the other hand, it is

•

„It

$2.45

dividends.

#

the

of

construction

6,000,000 tons.

*

*

*

of high

indication

First

industries and that the over¬ -1,000,000 tons to ingot capacity by
outlook for 1951 is not un¬ the end of 1952, bringing the total

all

in

«

pany's new completely integrated
plant under construction in New
Jersey across the Delaware River
from Philadelphia will add over

which

of

share,

per

distributed

was

many

with

appraised

course,

any

lessening
than

be

in

'.'shot

uncertainties

to

continuation

A

accuracy.

of

mes¬

project

of cautious optimism hedged

note

needed

call for the further expenditure of

annual

many

stockholders

to

sages

by

con¬

:

tinue.

is

to

will
provide
a
the arm" for

sub-contracted,

$6.77

share, compared with

per

$5.34 per share in 1949. Tl^e com¬

.

.

pro¬

$57,814,974,

on

formula,

it

is

indicated

thati.the-

might retain up to ap¬
proximately $4.00 per share in
earnings before becoming subject
company

to

the

excess

"growth"

profits

classification

sidered to be

more

year's earnings

tax.

con¬

Incorporated*
**■.

*

*•

„

PHILADELPHIA 9

The

is

STROUD & COMPANY

ALLENTOWN

•

PITTSBURGH

NEW

YORK

SCRANTON

favorable. Last

were

reported

at

V

•

LANCASTER

i

Volume 173fl Number 5000

*

;

.

The Commercial and Financial Chronicle

(1435)
must

Inflation and

Sabotaging

Economic

can't

Stabilization Administrator

supplies as hindering defense .program,
(1) nation cannot afford to let rate of profits go
shooting upward; (2) agriculture should produce to limit and
(3) workers should forego de¬

mands for wage increases that will break line against

inflation.
Deplores labor's withdrawal from Wage Stabilization Board.

it

is

carried

national

already

just

the

flationary year.
high enough to

sabotaging
surely as if
flag of inter¬

as

red

the

pay

in

communism.

They
let

defense bill

cash—instead of

not

are

government
as

it

The

before
list of

a

roughly
items

anced

150

vitally

required

*

,

.

i
"

of

wire

Now

Just

v

a cer¬

kind

cable

buying

in

let

me

talk

-

price to

a

pay for avoiding
stabilizing the economy?

and

don't think

The

A.

Johnston

as

anti-

an

inflationary tax policy is an antiinflationary credit policy. We've
been

Eric

—

important

as

a

on

of

spree

since last June.

This

then

with

man¬

sibility for failure will
them.
" *":•

lie

with

■

Robt. Boylan to Retire
As NYSE Chairman
Robert P. Boylan, Chairman of
the Board of Governors of the
New

York

nounced

Stock

April

4

Exchange, an¬
he will retire
from

the

Board

on

May

Now —the

this

board be,given to

alternative

worker.

-

do

will

The

■

big

the

to

workers?

understand

management's
position, its representatives clas¬
sify labor disputes as either eco¬
or

the

ment

defines

those

as

non-economic.

the

for

I

say

high

price to

and
I don't

pay for avoiding
stabilizing the economy?

think

war

alternative

The

so.

a

is

in¬

flation. "

years.
con¬

forms of

individuat

compensation.

It defines

non-economic

inflation.

11

will

tinue

dealing with such things as union
security, working conditions, and
seniority.

against

£

Check—wages; salaries and other

So, I ask the workers to forego
demands for wage increases that
hold

a
o

Exchange

He

pay-

fore:' "

would break the line we're trying

been

Governor

Manage¬

with

as.

Chairman.-He

economic ►disputes

dealing

succes¬

term

has

nomic

In

long run, most of them end
up worse off than they were be¬

sive

I

have

completed his
fourth

As

the

to

•

deal with labor disputes affecting

stabilization, we have a
never-ending chase between high¬
er prices and higher wages. What
does

how much author¬

he

when

21

The issue is:

ity should the

-

credit
I
have
every
confidence that
great¬ the worker—the businessman—the

easy

and

the mobilization program.

so.

inflation.

to the worker—is this too

credit.

about

a

;

Here's

for

pay

The alternative is inflation.
"•

soaring kite.
tain

prices

,

in

like

budget now, but to

military

unbal¬

an

think this is too high a
price to pay for avoiding war and
stabilizing the economy? I don't.

but four have

price

higher taxes is

Do you

force—and all

up

Congress

the next 12 months.

by

These

labor

again, and then again
dabor—during the week—
half the night—and on
Saturdays
and Sundays.
And I'm still do¬
ing it.

without

the

have

we

essential

our

the army, navy
and
the
air

gone

for

reason

because

not

27%.

it belongs. The credit for success
will go to them, and the respon¬

con¬

management, and then

agement

point I want to make here is that

finds it possible to enact one soon.

hope

nearly

functioning again. I've

with

prices have

higher tax

Listen to this:

I

I

is

goes—

bill—and

is

with

the farm.

on

farm

the cuff.

on

We must all expect a

Why
do
I
that?

me

board

ferred with

continue to rise at this rate

high

say

Right

the

.

war

defense

of

without shooting up the cost of
At
the
beginning, labor and
living and swelling the inflation¬ management expressed points of
ary flood.. We simply can!t afford
view- as far apart as Guam and
to allow'food prices to keep mov¬
Gibraltar.
But, as the talks con¬
ing ever upward and expect tor tinued the areas of disagreement
hold inflation from blowing off narrowed
down, until today there
the roof.
is only one major issue still re¬
I say to the farmer—is this too maining.

mili¬

warns:

should end;

produced

Since last June

tary equipment and

Inflation

sides

biggest single cost in the
family budget is for food

and fibres

risen-

Economic Stabilization Administrator cites price rises in

our

both

<

The

By ERIC A. JOHNSTON*

farm price rises

at

average

Discoid Is

and

look

coin.

li

disputes

those

as

as

member
Robert

P.

an

of

the Exchange.

Boylan

'

The

Nomi¬

nating

C o m-

Management is willing to have, mittee nominations for Chairman
disputes considered by and nine members of the Board
the wage board, but it holds that will be announced Monday, April
The annual election will be
procedures in the
Taft-Hartley 9.
Act and other labor relations laws held on Monday, May 14.
should be used to deal with non- ■.{• Chairman
of the Nominating
•

economic

Committee is Robert Bennett Ber-

economic disputes.

man. Walter F.
Blaine, Goldman*
position,1
ly increased purchasing power. farmer—the lender, the borrower, its representatives consider that Sachs & Co., is Secretary. Other
Here's cloth for uniforms—it's
up
People borrowed to buy things. and the taxpayer—will see their- you can't draw a definite line be¬ members are Adams Batcheller,
75% in some grades.
Here's a
Prices went up because of fear own self-interest in
doing what tween economic and non-economic Jr.; William J. Denman, Shearson,
heavy ack-ack gun—worth about
Hammill & Co.; John C. Hender¬
buying and because of speculation must be done to win the war disputes.
Therefore, labor con¬
$160,000 in the middle of last year.
—both of them financed in great
against inflation.
tends the board should consider son, Chas. F. Henderson & Sons;
What do you think its price
tag measure
by borrowed money.*
all disputes that affect the mobili¬ Emil J. Roth, E. J. Roth & Co.;
is today?
One-quarter1 of a mil¬
Wage Stabilization Board
George H. Walker, Jr., G. H.'
zation effort.
lion dollars! " And I could go on "I Look at. a few figures.
Bank
Now I want to talk to you about
Walker & Co.; and Charles H,
loans to business, for example,
endlessly with item after item.
/ These are the differences be¬
what we are trying to do to re¬
{ \ This is just the same as if half jumped by 18% from June of
tween management and labor that Wisner, Wisner & deClairville.
\
■
'
'
* r
the guns on order had been tor¬ 1950 to January of this year—up establish the Wage Stabilization are still in deadlock, but I have
Board.
•
pedoed on their way to a defen¬ $8 '.billion. Inventories are high
not- given up hope of reconciling
Georgeson & Co. Opens v
A month ago we had a wage
sive zone.
This means We have today by any standard, and, most
them.. So long as there .is any
to pay for the same guns twice, of them were built on borrowed
Cincinnati Branch
stabilization board in our agency hope left, I intend to keep on
for* we must have the guns, no money.
■■ ■
-r..
■ v
composed of three \ management meeting with management and
(Special to The Financial Chronicle)
matter what the expense.
And commercial credit isn't all. representatives, three labor rep¬
with labor in an effort to get a
These
CINCINNATI, Ohio—Georgeson.
aren't
deferred
purchases.
We Consumer borrowing took a big resentatives, and three represen¬ wage board back to work.
& Co. have opened a branch office
tatives from the public.
can't wait around
in
Its pur¬
hope the spurt,
too.
Installment buying
at
6242 Beechcrest Place under
Why is a tri-partite wage board
price will come down. We've got alone vaulted 24% last - year. * It pose was to draft and recommend
the management of Fred W. Weiss- *
so important?
Why have we spent
to have the guns now.
takes a pretty solid dike to hold wage and salary regulations to fit
all these endless hours in con¬ man. Mr. Weissman was formerly*
Put it another way.
Last Sep¬ back an inflationary flood of pur¬ into the general program of sta¬
ference?
It's because in a de^ with the Central Trust Company'
tember we boosted the income tax chasing power like that. * So we bilizing the economy.
mocracy a wage stabilization pro¬ of Cincinnati for
on individuals and corporations to
many years.
need further restrictions on this
Today we have no board. We
gram can be effective only when
raise an estimated $4y2 billion for flood of credit/ I say to the bor¬ have no board because the three
it is developed through the active
our defense effort, but
what has rower and lender—is this too high labor representatives withdrew.
Sutro Bros. & Co.
participation /of all groups affect¬
happened to the money? The net a price to pay for avoiding war This was in protest^over a wage
ed—labor, management and'the
Appoints M. Grayson
return
has
been
offset
I formula adopted by the other six
by the and stabilizing the economy?
public. Only that kind of partici¬
Sutro Bros. & Co., 120 Broad¬
higher prices government must don't think so. The alternative is members of the board.
pation can assure full support for
For the
last 30
days—to the
pay to fill its ..military require¬ inflation.
a policy
and give the policy the way, New York City, announce
ments. Inflation has cancelled out
exclusion; of almost everything
In the final analysis, the- real
that Morton Grayson has been ap¬
else—I have been trying to recon¬ necessary strength and vitality.
that tax increase. So you and I are
cure
of
inflation
must rest
on
The decision is up to labor and pointed Manager of the firm's Re¬
cile the differences between man¬
stuck twice when inflation sticks
sound
fiscal
policies and antiagement and labor and get a wage to management, and that's where search Department.
up government.
inflationary credit policies, but
i
I think we should make up our
we've got to do something else,
minds once and for all.
Do we so I want to talk
frankly to busi¬

it's

600%.

up

means

1

As I understand labor's

V.

.

•

'

>

'

<

j

to

want

control

flation?

this

type

It isn't going to

because it's

of in¬

be

going to require

rifices from all of

us.

In

months

in

this

I've

been

I've found nobody

trols

on

the

He

other

First—to
Last

And

>

/

*.

the

billion

after

make

the

all-out

an

lid.

We

assault

root causes of inflation.

must

on

the

We must

against it promptly—ener¬

move

getically—and all along the line—*
from

all directions all at once in

synchronized attack.
.

Now

let

me

First of all, it means

to

have

a

we've got
Federal

budget. And I want to talk about
that for

a

year

minute.

![«

Most people think taxes are too
high now. They are high—but they
; are not high enough for this in¬

account

""Address
over

March

Mr. Johnston, broadcast
Columbia
Broadcasting
System,
22,

by

1951.




,{).

I

The Potomac Edison Company
First Mortgage

taking into
1950 tax bills,

the

";h!V

and Collateral Trust Bonds,

•-

•

3%% Series Due 1981
,•

themselves leaped in one
by about 30%.

Dated

•

I

•"

;

-.

April 1,1951

simply can't afford to let
the rate of profits go on shooting
upward
during this emergency
and expect to keep inflation from

Price

These Bonds

the roof.
Business
another bite in taxes,
but it also must expect a tighter
off

blowing

must expect

,

"•*

.

t^

Due April 1,1981

/

.

.

I

are

101.421% and accrued interest

offered subject to authorisation of their issuance by The Interstate Commerce Commission.
may be obtained from the undersigned in any State in which the underlegally offer these securities in compliance with the securities laws of .such State.

Copies of the Prospectus
"♦

•

signed

may

"

profits.

the businessman—is
high a price to pay for
avoiding war and stabilizing the
economy? I don't think so. The
.

to

say

too

EQUITABLE SECURITIES CORPORATION
DREXEL & CO.

alternative is inflation.

Now—agriculture. It's essential
that agriculture produce to the

CARL M. I0EB, RK0ADES & CO.

R. W. PRESSPRICH & CO.

;

limit

as

zation

a

bulwark of our mobili¬

program

duction

*

'•

We

this

balanced

April 5,1951

and

taxes

squeeze on

tell you what this

is going to mean.
«

in

profits

uhderneath

of these Securities,
/

$10,000,000

1949,
they
more than
$40
billion
dollars in
1950, without
counting inventory profits.
This
was before taxes, to be sure.
But
full

like
boiling kettle.
The steam is not visible, but it
is building up explosive pressures

a

'

NEW ISSUE

business profits hit
in our history.

$28
jumped to

even

a

any

business.

year

about

From

lid clapped

on

buy

to

highest level

Price and wage controls are

a

to sell, nor a solicitation of an offer
offering is made only by the Prospectus.

offer

Can Do

con¬

job of licking inflation. They
won't, for they deal only with the
effects of inflation. They don't get
'

the

What Economic Segments

con¬

wants

fellow.

the

causes.

to

This advertisement is neither an

office,

people seem to think price
and wage controls alone will do

the

farmer—and

The

the two

many

at

the

ness—to

worker.

sac¬

who wants

himself.

on

trols

easy

be

and that its pro¬

stimulated

in

every

possible.
But—like
other
groups in our economy—farmers
way

'

WILLIAM BLAIR & COMPANY
)

-

"*

\
"

LAURENCE M. MARKS & CO.

'

COOLEY & COMPANY
'

G. H. WALKER & CO.

12

The Commercial and Financial Chronicle.

(1436)

.

.

Thursday, April 5, 1951

.

horizontal allocation the producers

War II, Class A products are those warehousemen, mining men — in
applications, di-r produced directly for the military fact, most of the business comrectly to WPB and received their establishment. Class B products, munity—must be educated as to
material allocations directly'from on the other hand, are certain theory and red tape necessary for
WPB; "One reason for horizontal consumer goods and small indus¬ an efficient operation of the Plan.
allocations was to reduce the pa¬ trial items such as nuts and bolts This
will
require
considerable

submitted

Again—A Controlled
By ALONZO B.

Board in World, War II, and

says

(3) recruiting personnel;
(4) educating public.

in

allocations

critics

P.'s

M.

C.

talked

new

version of

old World

an

operating procedure—the

Production

Administra¬

about

plowshares into swords
and swords into reports." Another
expression used around Washing¬
ton was: "Exchanging butter for
guns and guns for paper."

aluminum entered

The Evil of Univeisal

Militaiy Training

as an item in
In reconstituting C. M. P. for
maintenance, or re¬
the current emergency, Washing¬
Controlled Materials Plan -r- will pair. A principal objective was to
ton planners are, faced with sev¬
be. under way by early summer. eliminate bottlenecks by balanc¬
eral vital problems. A few of these
ing and timing both programs and
Meanwhile,
are:
(1) estimating requirements;
schedules. Another way of stating
businessmen
(2) bringing the supply of copper,
the aim is to say that it was a
will
find
it
aluminum and steel into balance
advisable to
system in which the mass-produc¬
with the demand; (3) recruiting
tion techniques and the scheduling
review the old
personnel to administer C. M.P.,
of production for individual plants,
operatioh in
and (4) educating the public. :
as is commonly
order
to
see
done in private
There are 23 claimant agencies.
how the new
operations, would be applied to

A

War II

Defense

"beating

and

balance with demand;

staffing of able personnel by the

directly from the ap¬ tion and the 23 claimant agencies
tions, allotments, records, exten¬ propriate industry division of the —a gigantic task in itself since
sion of allotments, purchase order National Production Authority.
able men are reluctant to take the
If a C. M. P4. is to come into full small
salaries
and
frustration
authority forms, and reports, were
very heavy upon both the govern¬ operation by the middle of next which generally, accompany jobs
in the cityon'the
ment
and
industry.
Some of summer, manufacturers, bankers,
Potomaq.

Washington
planners are faced with vital and difficult problems^ such as:
(1) estimating requirements; (2) bringing supply of metals
into

manufacturers of B items get their

cal allocation—in terms of applica¬

reconstrmting C. M. P. in current emergency,
i:

produced to stock. The

are

C. M. P.—particularly with verti¬

working of the Controlled Materials Plan

Prof. May describes

work. The red-tape aspects of which

per

MAY

Economics and Statistics,

University of Denver

of the War Production

,

'

Materials Plan
Chairman, Division of

their

production,

By WILLIAM A. ROBERTSON
Member of the New York Bar

.

the nation's business

I'lan may af¬
fect their own
nThe

Con¬
Mate¬

Plan

(1) its effect in leading to

are:

such

unfits

as

or

a

Commission, the Defense Trans¬
The proposal to enforce Uni¬ the cultivation of all that is re¬
portation Administration, the Civil versal
Military Training should fined,
generous
and
uplifting.
Board, the Economic
arouse the most strenuous
cation, its main emphasis was
oppo¬ The fact that some great soldiers
Cooperation Administration, the
sition
of
upon the former. The vertical al¬
have risen above such influences,
every friend
of free
Federal Security Agency, the Vet¬
lotment program was as follows:
government.
Objections to the and remained men of noble
erans Administration, the Federal
The Requirements Committee of
plan are. many and weighty.
To thoughts and actions, does not
Communications Commission, the
the WPB decided upon policystate
them
very
briefly,
and weaken the force of this state¬
both vertical and horizontal allo¬

trolled

which

military class
caste unsuitable to democratic society. Says UMT would
mean heavily increased burden on
taxpayer.

These include the Atomic Energy

whole.

among

habits of arbitrary and autocratic command,
one for civilian life; and (2) its creation of

Although C. M. P. incorporated

affairs.

rials

as a

Mr. Robertson lists eight objections to proposal for universal

military training,

of

the War Pro¬

duction Board

Aeronautics

Production

National

Authority, without
Each claimant
extended amplification, ment.
For the general run of
and the Departments of Agricul¬
then received notice of its
human beings, military training
they are as follows:
ture, Commerce, Defense and In¬
for authorizing the production of allotment,
after which it pro¬
(1) Military training tends to is degrading. Where it helps one,
terior. These agencies currently
munitions and other "hard goods." ceeded to bring its programs and
breathe into a soldier two very it spoils fifty,
are gathering estimates from prime
The C. M. P. did not go into effect schedules into line with its allot¬
bad
habits
which
are
contractors who
closely
produce muni¬
until the spring of 1943.
The Frightful Increase in Taxation
Under ment. The claimant agency then
They are the
tions and essential civilian goods. linked together.
the operation the War Production divided its allotment among its
This discussion has been pur¬
very opposite of what is needed
The agency estimates will be
Board estimated the supplies of
prime contractors. The prime con¬
confined to the simple
in a free republic like the United posely
critical metals—particularly steel, tractors would share with their submitted to the Defense Produc¬
propositiori that military training
States.
tion
Administrator, William H.
copper, aluminum, and their al¬ sub-contractors enough of the al¬
on a large scale, embracing mil¬
provided
basic

the

Alonzo B. May

system

allocations.

level

agency

loys. It then proceeded to allocate lotment to produce the parts and Harrison. The Administrator then
the supplies among 13 claimant sub-assemblies
required by the will study the estimates (demand)
agencies, Four of the claimant prime contractor. The size of the in relation to the supplies of the
three metals. If the demand (re¬
4 agencies obtained the metals for
prime contractor's allotment was
'military use—^the War* Depart¬ based upon his application, which quests) exceeds the supply obvi¬
ment, the Maritime Commission, included the requirements of his ously a reduction in the former
the Navy Department,
and the sub-contractors. On the basis of becomes mandatory.
He
will,
Aircraft Resources Control Office. production authorizations and al¬ therefore, cut down on the re¬
The Foreign Economic Adminis¬ lotments held by contractors and quests and expect each agency to
tration and the Canadian Division sub-contractors, mills and ware¬ make whatever change in its al¬
of the War Production Board re¬

houses

in

lotment to, say, prime contractors,
found to be necessary. The prime

The

first

This

is

camp

the

is

questioned

habit

obedience

of

to

.

indeed, in the
the field, but it is

necessary,

and

on

of the worst lines of

one

un¬

orders.

thought

to be instilled into the citizens of
a

free

and

enlightened

republic.

The second is the habit of failing
to scrutinize the wisdom or folly
of

order

an

of

decree

or

gov¬

a

ceived metals for export.
.

"Six

of War Utilities of the WPB.
C. M. P.

was

a

device for

vance

com¬

plete control of all industrial ac¬

tivity into which steel,

copper, or

small

of

orders,

amounts

of

items

requiring

controlled

ma¬

terials, arid certain industrial ma¬
chinery and equipment. Under

to

hardly be exaggerated.
spective shares of the three metals
(2) Military
life
engenders
for the production of Class A prod¬ wastefulness and recklessness in
ucts.

As

was

the

case

World

in

,

the

use

of stores
of

itself

importance that

BarreL sales increased 12.5% in 1950

^ ^

T

r

£ IF F E R.
POT?

WIXi iLuam

rxiLT

v/JN

1

...

ly5U

...

"from 1949;iiit anewpeak for thrtenth consecutive year
was

D D

increased

Net dollar sales,

up

16.4%

Annual production capacity
by 40% in 1950 from 1.5 million to 2.1 million barrels.. .Our 1950
•

^6dCThi&atioh tdsts of $2.8 millions were met out of accumulated earnftigs'*:-Thd tenthlarjgfcSt'bi^iv&ry in the U.S., Pfeiffer further improved its position as
the leading regional brewery in the Great Lakes Area
earnings
our

• Despite higher costs, pre-tax
After regular and excess profits taxes,

record high;up 8.9% .. .
only 3.1% • Dividends are now $2.00
totaled $1,797,226, or 49% of earnings.

were at a

net was off

payments

share annually

per

...

1950

disregarded.

We

Years Ended December 31:

Barrels sold.

1950

1949

1948

1,618,077

1,438,427

1,093,625

779,999

$33,495,298

$25,356,080

$17,874,188

Net sales after excise taxes.

$23,221,521

$19,953,731

$15,085,638

$10,543,469

Income before Federal income taxes

$ 6,530,677/

$ 5,999,281

$ .3,408,914

$ 2,485,169

Net income.

$ 3,651,215

$ 3,767,877

$ 2,143,987

$ 1,603,868

$3.05

$3.14

$1.79

such

supreme

economy may

be

would

looking

breakdown

of

forward

to be

understood

to,

with

confi¬

dence.

Universal

something
in

military training is
that has never, even

moments of intense strug¬

our

gle against ruin, been introduced
into American life.

First Boston Announces

Official
James
of

Appointments

Coggeshall, Jr., President

The First Boston Corporation,

100

Broadway,

York

New

City,

announced the following appoint¬
as

assistant vice-presidents

the

corporation: George C.
Bradley, Lewis R. Bulkley, Wal¬
Davis L. Baker, Jr., was also ap¬

of

Human

us.

life

seems

a manager in the Govern¬
Department and Walter C.
Faessinger as an assistant man¬
ager in the Government Depart¬

ment

cheap and trivial. Men ment.

considered

—these

things

to

be

so

much

Walter 11. Hobby

are

treated as of change arid in the
past

or

usefulness.

(6) Military

life tends

small value

$ 1,708,035

$ 1,981,883

$

960,757

$ 2,291,523

settle

$ 9,595,888

$ 6,638,538

$ 5,095,785

think that the

R OUR 1950 ANNUAL REPORT

pr

the

life and well-being
is

pointed

men

ner

Opens

of December 31, 1950.

...

was a

part¬

in Turnbul 1 & Co.

to un¬

and accustom them to

pursuit of a quiet
dull

life of business and study is
and

ft

Stalin

(4) Military training tends to
bring out all the Violence and
brutality that lies inherent in

$11,449,877
as

life.

ter B. Horn and Donald Macurda.

Working capital

(1) Adjusted for 1,198,634 shares outstanding

hasten

economic

which

ments

:V

,

,

Net assets

(shareholders' equity).

,

from

command, such as unfits one for

$1.34

share (1)

American

(5) Military training influences
ELIZABETH, N. J.—Walter T.
the mind of those subject to it,
Hobby is engaging in' a securities
to exalt .FORCE as above every¬ business from offices
at 19 Progry
thing else in the world.
Such Place, He was
formerly active in
things
as
conciliation,
reason¬ New York
City as an individual
ableness, diplomacy, moderation broker on the New York Curb Ex¬

1947

$38,646,335

per

into

refrained

of
be

civil life

are

Gross sales

Earnings

have

one
can

saying
anything about the terrific cost
that would fall upon our already
overburdened taxpayers.
No one
knows what that would be; but it

"cannon stuff."
the

is

of

most

COMPARATIVE HIGHLIGHTS
For

and boys,

(3) Military training leads to
habits of arbitrary and autocratic

to become

P

introduced

of merchandise

The Army learns

equipment.

think

to

r

men

worst influences that

their sub-contractors, their re¬

and

—

the

our

ernment.

position to sup¬
The action of John Hampden,
ply steel, copper, and aluminum.
who refused in the time of King
A number of products classified contractors in turn will scale down
agencies were concerned
Charles the First to pay "ship
with materials for civilian and in¬ as Class B products were exempt their allotment of scarce metals
money," and the refusal of the
direct military use. These were: from vertical allocation. The man¬ to sub-contractors. Thus the na¬
people of Boston in December,
The War Food Administration, the ufacturers of these items procured tion's demand for the metals is
1773, to receive the tea, have
their raw materials by horizontal brought into balance' with the na¬
Office of Defense Transportation,
long been recognized as events
•
) '
the Petroleum Administration for allocation. Two classes of products tion's supply.
of
supreme
importance in the
Sometime
before
War, the National Housing Agency, were included: (1) civilian-type
July prigrie struggle to preserve freedom in
fhe Office of Civilian Require¬ end items; and (2) components contractors will have allocated to England and America.
The im¬
ments of the WPB, and the office usually produced to stock in ad¬ the sub-contractors, and the latter
portance
of
those
events
can
were

lions of

prosaic.

Wife Waddell & Reed
,

(Special' to The .Financial

Chronicle)

KANSAS CITY, Mo.—Walter H.
Keller is with Waddell & Reed,

(7) Finally, universal military
Inc., 1012 Baltimore Avenue.
training creates a military class
or caste, which ought to have no
With Stifel, Nicolaus
place in any free land.
It is the
(Special to The Financial.Chronicle);*-:
opposite of everything that
American life has stood for, from
ST.
LOUIS, Mo. — Leslie; C.
,

other statistical data concerning

operations, write Us
gelations

or our

our

financial public

counsel,.Gartley

& Associates,

jjnjc., 68 William Street, New York 5, N. Y.




PFEIFFER
5740

BELLEVUE

BREWING
AVENUE

? •'

COMPANY

CETROIT 7,

MICHIGAN

our

earliest

days.

Germany is

a

dreadful exhibition of what mili¬

tary, domination leads to.
-

•

r* .d* -y*.

,f. AI

Avery is now with Stifel, Nicola lis
&
Co., Incorporated, 314 North
Broadway, members of the Mid¬

(8). Military training.is against west Stock Exchange."

V'

Volume 173

Number 5000

.

The Commercial and Financial Chronicle

.

.

(1437)

of

coal (chiefly from the United
Stat6s)., Coal,^as you will recall,
being third in importance on our

of

itst

imports.

L

capital

In Ontario this water power de-

7

.

hands

Wood,- Gundy & Co., Inc., New York City

"

>•' >■

L~

-

■

has

.

Discussing the major fields of economic actiyity in Canada,
with particular reference to exports, Mr, Turnbull lists the
principal producers and ^maintains that these companies should

*

;

**

War II, there were
issues placed in this

Steep - Rock, while the other
American
steel
companies f are,

by w the-then t Dominion
government,.by the Canadian National Railways, Shawinigan

to locate ore reserves north Of the

leader, in

Shawinigan Waiter

Water and Power, Bell Telephone

But it is in the western oil lands

>

is

turn

to

igan

fields

of economic
activity and
here I have taken for guide posts
the

leading imports and exports,
following being arranged in
order of importance for the year
the

1948.

Let

the

imports

in each

nearest

and

Canadian-controlled

af MlllinS Co., and the Ogilvie
Flour Mills.

Next on the list, in sixth place,

Ma140

Automobile'"parts"":::::::::

101

Products.-..-

Products

considering that field it

»°"r J™!""8 companies areMaple

217

Cotton

ex-

wheat, while in fifth
is wheat flour and to the

larSest

0

$293

tural

Rolling-Mill

Canada's list of

on

is

investor

Coal
and

hav-

be footed out that the

*

Implements
chinery

Second

place

Machinery," Except"Agritui^
Farm

-

ports

Re-

-

companies

largest assets are H. R.
MacMillan Export Co., and Canadian Western Lumber Co.

first,

dollars:—

Crude

controlled

84
79

....

develop

to

the

the

St.

hardly

was

little

the

of

Trois Rivieres—20 miles

electricity

Although

away.

for

before been transmitted any

such

distance

of

group

whole

where

Shawinigan
miles

85

there

they

would

to

power

ready

a

market..

list of Canadian securities, at that
time held by British investors:

They employed excellent
engineers who, by constructing a
50,000-volt transmission line, the
first of this capacity ever to be
built in North America, were able

,that .,a"

tbis room have fol-

that sometime in the future

might

be

able

they

increase

to

capacity of the plant to

the

much

as

as

72

w!hlah ahould satls£y

62

a

60

a y

57

tions.
At

in

Pay tribute to a very

planned

or rather book, on this subject re¬

longer puzzled about how to trans-

Electrical

Apparatus

Fruits

_____

......

_

Cotton, Raw and Linters—
These
order

the

are

of

first

importance

list

dozen

im-

the

on

followed, of
course, by very many other items.
Taking now the leading 12 exports," again
expressed
to
the
nearest million dollars, we have

port

and

are

the following:—
tvt

•

-r,

x

*ono

Newsprint Paper

$383

i!

'

rf "i
Wood-Fulp
w

Planks

—

o7o

-----*

jl*

and Boards__

Flour of Wheat

196

__

125

___

Aluminurn and Products.—

102

Fish and'Fishery Products..

85

Ships and Vessels.

81

Copper

and

Products...^..

Grains, other than

79

Wheat..

75

Cattle

74

Nickel

74

This

last

list,

namely of Canpoints directly to

ada's* exports,
the

half

.second

which

is

of

deal

to

investments

my

with

and

paper

Canadian

certainly

the
major producers of these primary
exports should logically be expeated to afford sound investment
nrmorhmities
opportunities

At
is

the

;

head

newsprint

field

we

try

such

other

two

Co.,

F°^P'U -W5ir
trolled.
Most

*

here

have

loaded

print

as

which,

of

this

in

the

with great

paper

corpo-

&

Paper

P

a p e r

Canadian-conus
downtown

of

seen

coun-

large

Power

Consolidated

and

list

this
In-

in

giants

Paper,

rations—-Abitibi

•

export

and

controlled

is

and

,

our

paper

have

ternational
course

c

•

of

trucks

arge

rolls of

news-

endeavoring to enter

N^St^etnene/°U eTt0 ^evPlani
of the
Wall Stieet Journal
and
you

may

have noticed that these

from the Bowater Mills; these

are

being located

in

Canada

newest

s

Province-Newfoundland; and
these

fine

trolled
In

is

properties

the field

of

its

many

of

Paper

other

Canadian

by
with

course,

(along

field

British

st0ck

Pulp

in

fore

the

the

j.

related
„

_

Company,

has

a

capacity of more than
1,800,000 horsepower, and a fur-

ther

horsepower

800,000
for

Since

of

here

you

in

surprisingly long list of investmerd portfolios but perhaps it is
fair

not

to

prising»

the

tise

because

word

the

"sur-

company's

remarkably fine management has
developed

for

uses

nickel

which

have made it not just a war stock

No

I

and

War

have

seen

estimate to

one

the effect that United States busK

southwest, almost to the Saguenay
in the northeast and to the Maine

border to the southeast.

The elec¬

Canada

Pacific

from

England.
But

Atlantic

the

well

as

as

•

n

to

the

all those in New
.

A.

story

of

While the corn-

annual

*eased
se5Y^f

report just re¬
hprover? ore re¬

?

materials

production has
$19% million in

neignboring

Province

chewan^:

of

Saskat¬

Expenditures
by
the
industry exclusive of
refineries and pipe lines in 1950
were
estimated at $150 million;
Alberta

.

oil

we

see

such

going north
development

a

between

125

million

and

150

The ilmenite resources of the
Allard Lake area of Quebec are
being brought into production by
a subsidiary of Kennecott Copper,
while Steep Rock, in Northern
Ontario, which produced over a

inaugurated

responsible
for
the
the railroads and the
of the country generally. This pattern was brought
to a halt by World War I, and following that first war American

have

exploratory and
development work "is, also," pro¬
ceeding
in
Saskatchewan
and

British Columbia.

|

From the outset a chief problem

has

the

been

crude

marketing

oil, and last

year

which, at last year's rate of ore
mined is equivalent to 25% years
requirements.
f

•<

ajs(^

mming field, we have,
sucb internationally promi-

nent

corporations

idated

Mining

&

as

the Consol-

Smelting

...

.....

These Securities

jbe

jn

■

'

'

were

150

the steady reduction of that fore¬
most item on their import
list,

which,

as

I reported to you

...—:—.Ji.

Mr.

As

Duncan,

head

yd bszcimm

in

the

heart of Canada's agricul-

Continued

^

—

;

;

on

page

—"
'

zsw,

They are
».

.Vi.

•

)■ r u

NEW ISSUES

Co.,;

Howe

Dome Mines and
when

we

many others,
look at manufacturing

The Cleveland

actiyity in Canad3) it wiu be im_
mediately noted that to a very
thig

extent

%

has

been

$15,000,000*
3Vi% Promissory Notes, due in 1971

tario and Quebec and this is quite
understandable
tbe

when

we

the

p0wer

water-

to

Provinces have
A

*$10,000,000 has been borrowed by the Company. The balance may be taken up

review

which
resources
of

degree

table

been

these

Graphite Bronze Company

c0n_

centrated in the Provinces of On-

by the Company

on

power per

the terms ar.d conditions set forth in the Loan Agreement.

two

deVeloped.

showing world leaders

1947

as

plants gives horse
thousand inhabitants in

,

4Vi% Cumulative Preferred Stock

-non

tai?? a

1180

%

;

,

United States

This

„,

Wo'S."
v

$100 Par Value

""7

AAlhWA

■

Switzerland
nJ joTI
(Ontario)

.

50,000 Shares

follows:—

Norway

805
,

'

-----

1580

---v

163

.........

.

F. Eberstadt & Co. Inc.

428

being one of the logical
ways whereby Canada seeks to
cut down her- need for imports

April 5, 1951.

the

Company,
has pointed out the development
of this great petroleum industry

placed privately through tl^yndersigjtf^wyifa i»}^u^yp^^rfhasw^l^mflor investment.
not offered for sale and
this-AnpQun^^lfflffsfdof rewdiot&^J :
•_

of

Massey-Harris

great

.'.vm

d 0?CI"m

earl¬

ier, for the year 1948 headed the
import list at $293 million.

j\joranda Mines Ltd.; Hudson Bay;

Sound;
HoUinger; KenAddison;
Mclntyre
Porcupine;

this

the

million tons of high grade iron
ore last year has a program to

•,

• •

of

witnessed

million short tons

.

as

indicated

as

by British capital;
the last century, was

was

I

American

millon dollars to bring this Labrador property into production,

broad

very

which

com¬

to

scale deoriginally

a

velopment

1,100 wells were

over

pleted in 1950 in Alberta and

Great Lakes this Spring, this oil
promote
will then move by tanker to the
the iron Ontario
Refining center of Sarore
deposits on the Quebec-Lania, and as this oil industry in
"
----brador boundary, 320 miles north
Canada continues to develop and
of the St. Lawrence River..
grow—Canadians look forward to

capital

It is estimated that it will take

the

Shawinigan chapter is
just that one chapter in the whole
■■

which has demonstrated consis- building of
*ently good 11ear"1Knf i" peace opening-up

PaiW s

this

building in the record time of
days of a l,15d-mile pipe line
which will carry this crude oil
from Alberta to Superior, Wiscontablish branch plants in Canada,
son, on Lake Superior.
As soon
but in the larger scene of basic
as
shipping is resumed on the
raw

tricity distributed would be sufficient to supply
every
home in

fs was originally believed to be which, in
*ke case, but, also, a company primarily

^lrnes, as well.

of

from

$84 million last

that

prices.
World

II, however,
there has been a ..great flow of
United States capital to Canada,

already

development.

forestry

Yorir,-.Api'if 3, 1951...




all

a

(Quehee)

,

While

&

-

—..

which

of

wdl have noted is to be found

Companies

Columbia

I would like to
fine booklet,

two basic metals are produced by
the International Nickel Co., the

compa-

this
and

point,

,

P°rt list are copper and nickel
respectively, and both of these

having the biggest assets in

Paper;."

V1

Power

total system

leased a month ago by the First
it now sends nessmen invested an estimated $1
Boston Corporation; doubtless electricity to industry and to resi- billion in Canada last year qnd this
dential areas over a network cov- js a flow of
many of you have already secapital which is likely
cured copies of this for your Li- erring an area of 25,000 square to continue for not only have most
braries.
miles, from the Ottawa River and American manufacturers found it,
Ninth and Twelfth on our ex- the New York State line in the 0n many counts, desirable ito es-

while

products)

controlled

Fraser

this

situa-

9rowt'1

value

increased

|n water power

nies

are

does not'

mit power 85 miles,

con-

wood-pulp, this

manufactured,

International
the

are

by British capital,

^ wbo seekf £°r' and what an-

the

at dollar

Montreal,

to

power

-37

an"

to call it

Quebec

transmit

Wool

...

boom, and it is correct I

sure

30,000 horsepower.
Today,
Shawinigan, with its subsidiary,

to

They decided to install two 5,000

Sugar and Products..—..
Products

This

such holders received payment
for them in sterling, while the
Bank of England, shipping the sewhile in 1951 it is believed that
curities so acquired across the Atthe
comparable figure may
be
lantic, received agreed-upon terms
about $200 million.
in Canadian funds for the securAlmost every United States oil
ities brought back to Canada; and
which securities were then by the company of any size is present
in this development.
Bank of Canada re-distributed
Another measure of this activ¬
through our investment fraternity
ity is to be found in the record
to new owners Pn this continent,

comes Aluminum and I am sure horsepower generators in the hope

'™ed the fortunes of Aluminium
L(td;n7ohlCb incorporated in May
°' •1®2\ha1sJ enJ°yfed a record

,

1947 to over.

Montreal

be

the

greatest influx of. American capi¬
tal,
American
enterprise,
and
American technical ability.

year.
Bank of England, in order to esThese figures are for all of Can¬
tablish substantial Canadian cred-.
ada but the great gain, of course,
its for the prosecution of the war,
established the so-called "Vesting has; been in the Province of Al¬
berta and to a lesser extent in the
Orders" with respect to a wide

method of sending

a

this

of

some

the

that

external - debt was repatriated
during World War II when the

this

hoped

men

might devise

miles

85

as

;

;

from 7,692,000 barrels in 1947—
market.
*
29,145,900 barrels last year. While
Another section of the Canadian

had

never

Lakes.

that Canada has experienced

am

settlement

a

hand

save

Great

a boom, is just
and, consequently, it was a logical
four years old; the Imperial Oil
subsequent
development
that
many of these New York payment Company strike at Leduc, -Alberta
bond issues were redeemed here having been made in February
and, in many instances, refunded 1947, since which time oil produc¬
tion
in
Canada
has
expanded
by obligations floated in the home

Maufice

on

was

also,; actively, engaged in seeking

steadily accumulating in Canada,"

,

it was
Shawin-

ago,'

at

near

the

being to

case

million

Petroleum,
fined

take

us

the figures

adian

years

this period investment capital

All around was forest and

there

industry of lumber the two Caning

50

Falls

River.

resources.

the major

two and deal with
-

town
us

aside

or

over

decided

likely to continue. Says greatest influx of Ameri¬
can
capital has been in western oil lands and that virtually
every U. S. company has participated in the development of

Now, let

to. turn

like

would

-Just

investment is

the -oil

minute

it.

that such

says

I

a

of Canada,-Duke Price Power, by
all of the Provinces, and by many
of Canada's largest cities^ During

.

that

bond

market

Co.; and herev ladies,
story of growth so. romantic

a

for

logically be expected to afford sound investment opportunities.
Points to huge volume of U. S. private
capital invested in
Canadian enterprises since World War II and

Power

.

while: iin

Province;
consistent

a.

World

and

many

private company which

a

been

tnis field is the
&

*

the

of

Quebec

.

three

Inland
Steel .Company has
Many of you wiu r(icaI1 that
the period between World Wat I" leased an Adjoining ore body from

,

veiopment is almost wholly in the
By W. WALLACE TURNBULL*

an
increasing -scale expand ~ this-production~ to
million tons.
going to Canada,

on

commenced

13

■

>

eleb

lit

r

.

jf.7

rt iito 1

Prescott&Co.

36

14

The Commercial and Financial Chronicle

(1438)

lege in 1909. Mr. Chappelear has j- henry
served the bank

both

News tLbout Banks

;

REVISED

United

States' and

Deposits

is

He
..

member of the

a

Advisory

;

Cuba of the

Another branch in

THE

v

NATIONAL

Mar.

opened

was

anao,

miles

in

west

the

ary

April 2 in Mari-

on

•,

suburb located about six

a

opened

Chase

section of

U,

established

was

Thomas

_______

UndiV.

NEW

■>'

1,870,015,906 1,664,941,944
*

#

Cash

and

from
S.

curity

CITY OF NEW
Mar.

Total

Bankers

Trust

of

Company

Loans

and

U.

S.

Govt,

1,435,547,720

will

in

se-

which

he

began his

1,815,387,722

54,935,517
;

in

53,007,008

%

*

officers
be

can

*

•

■

Graduate

regular meeting of the di¬

__

were

are

S.

-

X-

U.

Dec. 31, '50

he

Loans

from

Dartmouth

*

*

V

sale of

NEW

of

YORK

stock.

31, 51

,:
' *

.

cess

at¬

Total

resources

169,863,443

171,770 725

136,217,670

137,771,392

30,764,411

27,844,870

68,672,353

60,906,*987

53,003,574

Deposits

Col¬

66,431,564

due from

banks

.

____Jl_

&

discounts

2,333,943
*

*

Total

resources-

banksU.

S.

February ' 8, page
647, was approved by the directors
of both institutions on March-29,
according to the Philadelphia "Inquirer" of March 30, which stated
that it has been revealed that the

fractional shares may

stockholders

YORK

of

| Loans

301,440,357

369,389,749

554,710,091

519 323 848

and>. bills

discounted

I Undiv.

Corporation

406,990,516

•

se-

.

__

profit^—
••.;'•• •*

*

referred to in

will

bank

i.'

>

*

;

tive. From the "Inquirer"

1,144,791,192

1,212,071,132

quote:

371,755,914

385,377,437

if

Cash & due from

—J.—

banks

the year

U.

Govt,

S.

se-

curity holdings
Loans

brief

and

J

•

J

profits—

-

/

will

-

become

.

000,000.'

.

Unfrozen

.

525,735,515

531,836,448
15,652,845

THE NEW YORK TRUST

New regulations now permit

Net Sales and Other Revenues

"i.

v-

•

.

...

r

.

t

■

■

M

income for the Year
Net

■*

.

$444,298,724

.

>.»».

.«

1949

30,918,202

Earnings Per Share of Common Stock

Preferred Dividends
Common

banks '-v—__

U.

S.

Govt,

,t

Dividends

J.

.

v

.

.

.

,

Cash Dividends Per Share of Common
Stock

";880,609

.

.

2.50

.

Income Retained in the Business

30,418,350

.

13,892,216

*

CORN

Assets

*

Total

..

-,

.

.

.

.

Deposits

.

$197,824,543

Property, Plant and Equipment —Net
.

.

.

.

;.

.

;

"164,043,422

.

.

current

portion)

.

.

"

64,290,000

-

-

.

■

MARINE

228,024,394

-197,607,665

$314,745,021

Dec

banks
U.

S.

Govt,

CO.,
3i

COUnt."

$390,065',908

$404,340,977

375:476,603
121,212,890

Middletown, Ohio, with Plants and Sales Offices from Coast

Corporation, World-Wide

to Coast

\

the

135,459.536

3,782,381

DMark

COMMERCIAL

resources-

Deposits

out

credited

be

The

spect

CO.,

NATIONAL

NEW

BANK

i

Govt,

$222,320,752

the

to

Dec. 31, '50

balances

Ac-

of such

"Ac¬

to

a

such account.

with

"Acquired

number

are

re¬

DMark

also appli¬

of the former

in

old

DMark;

blocked

'

The
74,428,383

78,425,061
63,458,013'

60,356,778

14,983,204

14,871,910

84,214,618

Surplus & undiv.

profits

Blocked

as

now

following transactions

are

permitted:

(1)

Crediting

securities
coupon

"Acquired

Account"

with the

transferred
uaiisi(

of this

the

Blocked

any

-

accounts.

62,769,732

curity holdings

•

general licenses concerning credit

$234,678,840
205,747,072

se¬

Loans & disc'ts.

i

'

designated

regulations

new

cable to

YORK

192,12^,776

banks
S.

DMark

may

same

can

be

desig¬

mother foreigner.
be purchased out

account securities of

Ger¬

man

corporations publicly traded

on

investment

will

*

Cash & due from

U.

ac-

*

4

3,577,562

*

Mar. 31, '51
Total

foreign

terest, rents, amortization of jnortgages and so forth, resulting from

135,011,553

150,051,840

profits—

TRUST

ARMCO STEEL CORPORATION

is

Blocked Accounts"
THE

foreign

In vaddition

German stock

a

securities
sold

the

and

credited
the

so

in

when

A

exchange/ The
may be
proceeds will be

purchased
„

the

"Acquired

quired DMark Blocked Account". Account."
117.950,808

*

sent to you on request.

one

Income, such as dividends, in-

'50

se¬

curity holdings
Loans & disc'ts.

'

is made

"Acquired

Cash & due from

'TA>




TRUST

Report, which contains many interesting

concerning Armco Steel Corporation, will be

The Armco International

MIDLAND

109,779,114

Deposits''

Undiv.
a free copy of our
complete 1950 Annual
facts and figures

4-1

360,560,520

Total resources-

4,814,739

$383,040,519

.

.

|

from

another

to

transfer

*

^Ma^si^si
$ 48,032,617

balances

circumstances.

certain

under

count.
When such transfer is ef-„ nation
to
vuuni.
wnen sucn transfer is ef- nation
7:773|639 fected, the account to which the Also, there

$314,745,021

60,920,000

regulations* it
permissible to transfer the

now

account

.

$ 88,622,484

(4) Payment of taxes, fee? and
of courts and attorneys,

11? mojina-

8,124,423
*

5,473,641

.

Net Worth
.

106,125,506

bills

V

Operating Reserves

Total

—

profits—

THE

Liabilities

Long-term Debt (less

436,463;943

.-discounted
Undiv.

is

connecjtion with account.

United

expenses

credit

se¬

frozen

of

the

in

assets

Under these'new

778,684,"575

244,151,013

415,502,942

and

from

DMark; Blocked .Account"

de-

States.

$829,337,258

221,473,759

Govt,

Loans

Liabilities and Capital
Total Current

S.

and securities held in "Acquired

Germany

(Stillhalte-v agreement)
German

Dec. 31, '50

720,483,314

curity holdings

13,379,972
3,264,155

.$383,040,519
•«

U.

142,856,480

4,743,891

_.

Total

$155,244,414

16,428,663

.

Prepaid Expenses

$784,857,918

CO..

Cash & due from

Investments —Net

for

regulations

new

siSned to permit

YORK

TRUST

Mar. 31,'51

banks
.

issued

,

BANK

NEW

FINANCIAL POSITION

.

Current Assets

High'' Commission

a partial un-> one . banking -institution to. anI3!322:8i2 feezing of blocked German ac-. other.
.
.*
■;
i
counts.
It is estimated that there
r.(3)j Debiting of account, for
are
at present 560,000,000 marks
charges of the bank incurred in

261 691 616

*

EXCHANGE

Total resources!

iting of account for expenses and
fees. - "
> - •
• - >.
', •
j i(2) Transfer of credit balances

According to L. D. Silberstein,

President of UNO Equities, Inc.,
international bankers, the Allied
has

profits—

Undiv.

45.46

•

224,369,971

disc'ts

&

20,250,419

53.08

Book Value Per Share of Common
Stock at Year-end

245,098,017
260,786,196
295,956,842

9,767,996

4.00

♦

899,787.

15,701,546

■

.

718,557,649

se¬

curity holdings

7.68

Loans

,V'V

$797,468,803

Cash & due from

$349,049,521

47,000,505

•/.

;

Dec,31,.*50

$826,359,476

746,257,425

Deposits

transfer of credit balances from

foreign account to another.

CO.r NEW YORK

Mar, 31, *51
resources-

combined, to $40,V:
Y
!

surplus,

and

•

one

Total

effec-

we also

292,312,414

16,091,093

l„

approved,

,

' 266,279,862

.billsv

discounted

j Undiv.

offering of the

Dec. 31,-'50.

ft

completion ot

proposed financing, certain
adjustments will be made in.the
undivided profits account to bring
the bank's surplus account up to
a total of $27,000,000, and capital
the

middle of June, when the merger,

i;320,605,360

—

is stated that upon

stock will be made about the

new

J

1,260,380,883

resources-

Deposits

YORK

be b°Hgn

full shares,

and sold to make

136,875

,

Mar..31, '51
J'..,.
$

•.•

.

Total

offer

——~

that the proposed

on

issue

our

Thursday,

resultant

BANK OF THE MANHATTAN CO.,

NEW

institu-

two

12,'600,'284 .additional shares to its stock•'
holders, and that - it is-expected

13,231,418

*

'

the

of

May 31. The contemplated

on

merger,

Dec. 31,'50

353,951,106

—

Govt,

curity holdings

record date. Each

the

owned, at

then owned will therefore
then owned will
be entitled to subscribe to .2/ii ot
a share'of ^e; new stock,
wni e
it is not practical at this^^time xo
determine the offering Prlce»^^ *
I Kurtz states, "the Board proposes
to offer the new shares at a
reasonable discount from the ma ket price then prevailing.,
rangements will be made by,

Cash & due from

Armco Steel

200,000 ad¬

share
share

Philadelphia will be
*
1
taken at special meetings of fhe

1,288,217,771 1,360,469,826
1,142,130,796 1,218,560,042

Deposits

profits taxes. The

ditional shares

con¬

A

—

tions
Mar. 31,'51

proposed

with the Girard Trust Com¬

+

2,294,288

IRVING TRUST -CO., NEW

the

on

pany, both of
notn

' C _iC,

■■

in

will be offered to
solidation Of the Corn Exchange stockholders in the ratio of one
shares
National Bank and^Trust Com¬ new..share 'for each 5Vz
Action

<

pany

'

Undivided profits..

he said> the* increase

over'

capital funds will enable the Comsavings AX X
pany to effect oa Vlll^O in it? exw cj,h.l u

«.

it

.

growth of its

all

'

Dec. 31, '50

the over¬
operations. More-

dull pace with

not kept

its capital from $200,000
$260,000, effective March 16,
by the sale of ,$60,000 ofnpw

creased

;j

Mar.

Loans

mo

additional shares was that
.growth of the bank's capital
structure, while substantial, "has

it

'

STATES TRUST COMPANY

'

President, said
for the

primary^ reason

that, the

to

holdings

in

*

March 22 Wil¬

by the directors on
liam Fulton Kurtz,

The National City Bank of Long
29:936,866 Beach, Long Island, N. v Y., in-

*

exceed

the

U. S. Govt, security

Reports

954,248

mi am am

31,391,323

*

Cash and

graduated

7,910,795

877,977

bills

and

profits J

.

ministration department.

10,987,219

se¬

discounted

818,188,457

7.46,666,778

profits—

<

was

He

after the
in con¬
nection with the issuance. In ex¬
planation of this move, approved

6,812,744

9,372,454
8,435,040

Govt,

curity holdings

'>■

of Master of

Administration.

Business

8,320,798

903,231,332 1,030,956,549

discounted

tended Phillips Academy, and was

assigned to the bond ad¬

S.

approved,

if
$6,000,000

financing,

new

will

deduction of all expenses

bills

UNITED

where

the

26,079,125

se-

and

i:

,

26,371,497

banks

31, '51

$

$28,117,188

Ji.Jj.--_-

Cash & due from

YORK

750,800,501

.

Govt,

Undiv.

1,100,000 shares of the parvalue of $10r to 1,300,000. shares
—will
be
voted on 1 at a spe¬
cial
meeting
May
28.
It is
anticipated that the proceeds of

Dec. 31,'50

$28,418,649

additional 200,000 shares—

by an

Surplus & undiv.

curity holdings

"University

appointed Assistant Cashiers.

Both

•

31,'51
$

resources-

Philadelphia^

of

from

it

,

2,592,811,450 2,772,539,261
2,396,263,928 2,581,949,234

_

banks

U.

3,000,881

Mar.

f,

Cash kr flnn from
& due

Loans

7,819,803

3.006,789

CLINTON TRUST COMPANY, NEW YORK

1,294,961,299 1,230,658.065
v .75,819,723
74,386,332

*

resources.

Deposits

8,164,637'

Trusts

and

ing

__

for Bank¬

Pennsylvania Company

bills

and

802,887,596

School of Business Ad¬

granted the degree

Carl Wedel

bert W. Ambs and T.

782,194,389,

Total

Total

11,329,001
21,942,462'

profits

-

at Bankers Trust

Harvard

ministration,

April 3, Al¬

on

the

•

11,765,716
21,231,073

se¬

holdings

discounted

..

.

.

proposal to increase the. au¬
thorized capital stock of The

bills

Mar.

will be given an

•,

rectors of The National City Bank
of New York held

career

'

731,102,226

.

to

matters

on

Loans

of the united
Girard Corn Exchange
and Trust Company.
*
a.
* :.».
1
•: •
name

A

*

hold'gs

and

NEW

helpful, and

36,426,659

-

Govt,

Deposits

1911, following his graduation

from
*

available

be

$42,292,455

36,612,173

Surplus & undiv.
752,227,696

Chappelear

Mr.

to

S.

curity

MANUFACTURERS TRUST CO.,

office at the bank. Mr. Chappelear

1,477,758,049

1,869,667,422

profits.

a

with

consult

1,499,884,122

that

said

continue

for that purpose

discounted

At

ment,

bills

and

Undiv.

Dec. 31,'50

5,283,011,759

hold'gs 1,419,840,131

curity
Loans

31, '51

due

banks..

from

in

dent,

banks

U.

5

-

$42,490,629

—

bank

will be the

Dec. 31,'50

se¬

discounted

Sloan Colt, Presi¬
announcing the retire¬

.

Dec. 31, '50

-

due

Undiv., profits- s

full-time duty. S.

4,846,660,746 4,871,424,028

Deposits
Cash

YORK

5,272,212,639

resources.

THE

OF

$

banks—

Govt,

ft

The

NEW YORK

CO.,

Cash & due from

—

2,579,928,778 2,503,010,000

;New York, and is retiring from

NATIONAL BANK

YORK

3,021,824,366- 2.940,419,604

■

CHASE

Deposits

OF

Total resources-

U.

«

Edgar S. Chappelear completed
on
March 31.40 years of service
with

mure

Bank

COMPANY

Mar. 31, '51

58,075,826

59,485,783

TRUST

Mar. 31, '51

Deposits

profits..

-

>

.

..

.•

1,542,787,227 1,437,981,108

*

Cuba.

THE

SCHRODER
.

TRUST

......

discounted

in

\*

member of the War

Board.

GUARANTY

se-

A.

4,ooo,856

merger authorizes the
combined institutions to issue a
total of 821,250 capital shares, 20%
than the total num^vA «
number of
more
uidii
mc
tutai
s
pr<
shares of the two present banks.,

*

Total resources-

bills

and

4,006,877

1

•

held.

plan • of

'

5,167,682,639 5,130,853,626

Govt,

I4,ii8,5i9

'

*

curity holdings 1,466,370,819 1,724,232,775

Findley, VicePresident, is the resident officer
in charge of the bank's operations
in

S.

Loans

business of its main branch in the

1925.

Y

'

56,483,914

15,728,067

profits

>,

"

banks

developed

Havana, to augment the

capital which

Industries

J.

5,600,106,946 5,526,348,028

Cash & due from

branch

a

newly

a

OF

1

was a

Dec. 31, '50

31, '51

■

.

resources.

In Febru¬ .Deposits-

of Havana.

Vedada,

Total

BANK

CITY

YORK

NEW

Chase National Bank of New York

War he

62,763,250

bills

and

Surplus & undiv.

urer of The Newcomen
Society of
England. Duripg-the First World

of the present banks
The par of the new
stock will .be $15 a share. The
mi

ii

i

now

12,606,509

discounted

Council, and is American Treas¬

CAPITALIZATIONS

stockholder of

share

each

80,938,176

14,499,028

curity holdings
Loans

Committee of the National Cotton

•

the two
one* share of
in the combined bank for
m
UiC UUIUUlJJCU uaun. iui

stock
stuun.

$106,109,029

89,595,668

5, 1951.

Thursday/ April

will receive

banks

Dec. 31, '50

Totai resources.• $119,229,349

auditor in

an

.1921, was named Comptroller in cash & due from
.1923,. and Vice-President in'1927. u s GovT7e"

Bankers-

and

ETC.

NEW OFFICERS,

the

NEW

Mar. 31, '51

;

.

"Each

schroder^banking corp.,
YORK

senior officer

as a

abroad. He became

CONSOLIDATIONS
NEW BRANCHES

in

.

;same
.

manner

DMark

to

Blocked

.

important provision of
the new regulations is that by
application for a special license,
the
"Acquired
DMark
Blocked
Account" may be utilized for the
following purposes:
very

.

(a) Purchase of securities not
publicly
traded
on
a
German
stock exchange;

(b) Purchase of real estate;

of coupons and
due, renewal of

and dividend sheets, deb-

(c) Repair
buildings;
(d)

or

construction of

Granting of DMark loans.

Volume

Number 5000

173

.

.

.

The Commercial and Financial Chronicle

j.

■

*

*

H*

"

,

t

'

More

*.

"

' f

y

'

f"

\

news

,

'

,

.

^

'

'

r

.

•

(1439)

<

"

from CIlrysh;r Cor poration

of cars,

A.
n

New uses of suspension principles are do¬
ing important things for wheel-borne
transportation.
Cars that

vehicles that

tary

ment,

and

,

move

^

.

and equip¬

rolling

cars

on

our'

from

Chrysler

cars,

the

principles in

a new way to

troduced

sorbers. On" every

■ -

•

works in

%

-

all

uses

I

ton

hydraulic

freight

which also

cars,

re¬

quire protection from shocks along the rails

they travel, Chrysler engineers have devel¬
oped

a new

"balanced suspension." It absorbs

both vertical and lateral shocks
cargoes can

gently,

so

that

ride steadier and safer.

give cushioning

three- times that of ordinary shock ab¬

power

by Chrysler scientific research and

on

Dodge y, y and

on

railroads—all benefit from developments in¬
engineered production.

Chrysler's "Oriflow"

Plymouth, Dodge, De Soto and

new

For railroad

important advance in riding

comes

trucks, and all Route Vans. It

trucks that haul the products of farm

factory, and freight

comfort

shock, absorber, an exclusive feature

*

along the highways, mili¬
transport men

Another

>

i

—

kind of road, "Oriflow"

harmony with synchronous spring¬

ing, shockproof steering and scientific weight
distribution

to

provide

a

smoother, safer ride.

In this accurate scale
This M-37 cargo
can
our

for

travel

more

rapidly and surely

World War II cargo
men

smoother "ride."

carrier, built by Chrysler' Corporation,

and cargo

by

new

over

that

rough country than

come

from

model

jolting side motion.

snubber which works with

carriers.. The ride is steadied

you see

three

up

for

shocks

(2) unique friction

(3) long travel coil springs to

cushion vertical shocks and control bounce.

suspension principles, improved

reasons

(1) swing hanger which soaks

Engineered

springs and heavy-duty shock absorbers that provide extra

by Chrysler, this mechanism is produced for railroads by

cushioning

qualified equipment manufacturers.

A

rated

power on

new

in

and

bad roads

or

roadless terrain.

softer ride is

On the

incorpo¬

now

trucks

a

military ambulance,

rugged country where there

With

must

,

new type

discomfort

are




as never

before.

the

of wheel-borne

this

new

shock absorbers, jolts and

minimized

the nation's

vance

passages

roads.

improved suspension, special spring¬

ing and

meet

absorber, the engineer is pointing to one of the

In

operate

are no

on

the

velopments and engineered production help

being built by Chrysler Corporation.'

Often
in

highways, in the fields and

rails,"Chrysler Corporation's scientific de¬

military design ambulances and

of

Chrysler's

new

"Oriflow" shock

tubular
through which cushioning fluid flows. This is a
of

military needs, and ad¬

safety, dependability and efficiency

transportation.

hydraulic principles which helps > "Oriflow"
bumps by controlling jounce and rebound more

use

absorb
'

drawing

<

smoothly than

any

design-used before.

•

.*■*•

CHRYSLER

CORPORATION

16

The Commercial and Financial Chronicle

(1440)

and, hence, I am an opti¬

do this

Why the Growth of the U. S.

BABSON

By ROGER W.

Our

government

loose fiscal policies, make-believe money,
excessive government spending for non¬

substance through

I have not been wor¬

campaign,

achieved

es

Rus¬

the

by

I

sians,

am

confident that

Chinese

the

will turn

tide

permanently
if
T

m

u

1*

a

avoids

n

war

with China.

What
me

is

resist

can

that

little

a

Americans

that

indicate

heart¬

not

are

so

laying bare the evils of the
Soviet system, the Korean cam¬

to

paign has
tention
our

But

that

for

r e c o

some

have
nized

g

our coun¬

day face

this

was

inward

of

the results of the Novem¬
ber Congressional elections. They

fore¬

that

Relieve

I

the

strong that it

type

ened by

the

years

one

every

corrosion.

who

try would

seriously disturbs
extremely smug assur¬

the government of

States is so

United

front of those

munist danger. I do

those ideals

S.

U.

very

our

that

ance

have been

I

in

Com¬

a

on

I

also focused some at¬
"the enemy within"

structure.

government

own

not

am

so

sure

even

now

recognize fully this enemy
eating
our
substance

we

which

is

loose

through

make-believe

unfair

money,

tax

excessive government

structures,

for non-essential pur¬
and
various inflationary

threat

poses

by any means the greatest dan¬
ger facing the nation. Korea has
Maroused us, rudely to be sure. It
'lias exposed in all its ugly nakedmess
Russian
duplicity, and its
'threat

faith

to

our

future

and

the

to

»t*eace of the world. At last even
the most stupid of our politicians

more

will

we

be

Keeping

Our Economic Freedom

it, the final answer to
is a better
a
fuller way of life.

As I see

the Russian challenge

and

our

World War II.
In other words,
military production and the prep¬

W.

eral

not

a

$10

now

see

time,

year.

contrasts

knowing

them

Hbeing

going

^hordes, if
*fioil and

we

by

will

or

Moscow's

invest

in

the

the
John W. Snyder

$16.5

family should—for instance—have

even

work, to save, to in¬

to risk, in worthy ven¬

revenue

collections associated with

the filing

March

Potomac Edison Bonds

Offered

15

ernment's

CORPORATION

Equitable Securities Corp. heads
an investment group which is of¬
fering today (April 5) $10,000,000
of The Potomac Edison Co. 3%%

pany

and

estimated

of income tax returns on
indicate

that

revenues

the

gov¬

for this fiscal

the

its

subsidiaries.

that

new

It

is

$7,772,635

Net Income before Taxes

$

924,308

$1,193,839

$9,771,030

$1,642,101

$ 2,764,972

$ 2,088,558

$

321,471

$

362,500

$

667,375

$ 1,254,750

Net Income

$

602,837

$

831,339

$1,051,601

$ 1,421,183

$ 1,510,222

Total Dividends

$ 224,900

$

417,599

$

$

$

590,500

$

Some

471,700

543,594

RECORD

iFixed Assets (Net)
Earnings

per

377,937

$5,618,824

$

413,740

$6,829,683

$

579,901

$8,413,143

$

877,589

$

$ 9,699,526

$

Common Shares Outstanding
Year End

1.02

1.30

$

$

1.61

590,000

590,000

590,950

98,128

114,122

$

126,765

2.21

654,356

855,867

2.16

618,371-

Certain 1949 items

DIVIDEND

S—During 1950 the

quarry dividend rate on the Com¬
mon

to

Stock Was increased from

$.22Tf

crease

a

share

—

.since 1946.




$.21

the fourth in¬

are

before extraordinary

735,184

141,755

160,419

and non-recurring charges.

This advertisement is
the

not intended as an offering of the securities of
Corporation.:A copy.of the 1950 Annual Report can be
obtained by writing to Whippany, New Jersey >

MARK ANTON
President

R. GOULD MOREHEAD
:

Treasurer

expenditures

of

to

over

to

which

is not yet clear.

enues

recent

developments will carry
raise fiscal year 1952 rev¬

of unexpected
fiscal 1952 revenues
sence

In the ab¬

developments,
are

at present

"Let

me say as

emphatically

as

I

know how that the fiscal problems

facing

"t

us now are as grave as any

which have confronted this

coun-

try in recent years and can be re-

■*,

solved only by forceful and timely

legislation.

revenue

"While the current fiscal situa¬
tion
not

is

be

this should

encouraging,
allowed

to

,

r

quate financial preparedness.

out the emotional stimulation of

>'

a

the

civilian

reductions

.

"Since
defense

Korea,

the

expenditures

increase in
has
been

largely for the purpose of adding
to the armed forces.
Expenditures
will
increasingly
shift to payments for heavy equip¬
manpower

ment

and facilities for

output.

additional

Over three-fourths of the

defense orders

already placed

are

for costly fighting equipment and
for facilities to

tion.

expand its produc-

*.

As has been made evident to

the Armed Forces Committees of
the Congress, the steadily mount¬

ing
ders

financial
will

not

drain
reach

defense
its peak

or¬

in
government expenditures for more

than

a year.
Before that peak is
reached, defense expenditures are
benefits, for example, depends in expected to more than double.
part on employment opportunities.
"The
available. information is
Funds required by the CCC fluc¬
not sufficient to permit a forecast
tuate with farm prices and farm
of just what the deficit under
loan practices under the price sup¬
present taxes will be month by
port prograpi.
month or precisely when the max¬
"With respect to the timing of imum
level of * expenditures will
defense spending, I am advised by be
reached. In his budget message
those icharged with procurement
the President emphasized that our
activities that it is not possible at
expenditures for national security,
this date to predict how promptly
might be subject to substantial ad5
the obligation of funds for defense
justments as the - program ad-^1^
contracts will be followed by ac¬
vanced. This caution must be cOh-^*
tual expenditures. Moreover, con- tinued.
It is possible, but by nd ^'
tractors are revealing an ability to means certain, that actual fiscal
operate for relatively longer pe¬
Continued on page 40
riods with their own financial re¬

veterans

Number of Installations
Year End

extent

revenue

is

ad¬
Ad¬
ministration and the Commodity
Credit Corporation, which are af¬
fected by
changes in economic
conditions. The degree to which

$11,927,019

$

revenue

in programs such as those
ministered by the Veterans

Common

Share

legislation,

are

Earnings Retained
$

tax

currently estimated that
during this
fiscal year probably will be about
$3 billion less than those projected
in the budget.
The reduction in
expenditures this fiscal year is
partly accounted for by savings
in the civilian programs and partly
by the fact that financial settle¬
ments on military deliveries have
accelerated less than anticipated.
"It

actual

$12,566,171

$10,980,343

Total Taxes & Contingencies

in Business

maintained in the future.

wartime emergency to* impel us to
estimating is complicated ,by the
take the
necessary action. The
basic changes now taking place in
lack of this stimulus must be com¬
the economy. When the economy
pensated for by sober calculation
functions under strong pressure,
for our future welfare. We shall
when resources are being reallo¬
be gravely misled if we view our
cated between civilian and mili¬
problems and judge our needs in
tary needs, and when the results
the light of day-to-day variations
of stabilization measures are not
in
reports from
trouble
spots
clear, important changes in tax
throughout the world.
collections may occur in relatively
short periods.
Increase in Defense Expenditures

1950

1949

unanticipated revenue is the
scare buying and rising

recent

construction

#

$5,673,615

ticipated deficit of $2.7 billion
presented in the January budget.
I cannot emphasize too
strongly,

postpone adeWe
prices > which are reflected not must not fail to
provide for the
only in higher living costs but in
proper financing of our steadily
higher defense costs as well."
increasing defense production.
Continuing his statement, the
"What we should recognize is
Secretary pointed out:
that we have most of the financial
"In addition to the usual prob¬
lem of appraising the effects of problems of a full-scale war with¬

subsidiaries

1948

In other words, part of

result of

'

Total Revenue

com¬

estimated

in revenues is due

increases.

approximately $23,850,000.

and

1947

an

"While the slower unfolding of
primarily the defense program may some¬
to higher receipts than expected what retard the rate of increase in
from individual ?tnd corporate in¬ expenditures, the total cost of the
come
taxes, which provide the program is not thereby decreased
largest part of total receipts. How¬ and as a result of higher prices
ever, a significant part of the in¬ may actually be increased.

crease

*whO bo* rjlrh n-yy)',
1946

to,bring about

stated, adding: "The indicated in¬

Group

during 1951 and 1952 will amount

will

and the

will be about $2.7 billion estimated to be about $3 billion
higher than anticipated in the Jan¬ higher than anticipated in the
uary
budget," Secretary Snyder budget.

by Equitable

Securities Corp.

to

we

bine

year

tures, we shall be safe from Rus¬

imperialism. I believe

revenues

lower rate of expenditures

"The

"Internal

,

land to till somewhere.

Adminis¬

tration.

lution. One of these is that every

sian

forget paper profits.

GAS

freedom to

vest,

many

demands

in¬ however, that the current budget
orig¬ surplus is temporary and that we
inally deemed must guard against the unwar¬
necessary by ranted conclusion that it will be

for

Communistic

conquered

by

crease

what they are, I don't believe the
American
people will fall for

^America

precede
financial

billion

that Russian victory
world slavery.

but

it

fiscal year compared with the an¬

with the

long sit

be realized from the sale of 200,So long as we can preserve the
000 shares of additional common
religious faith which has helped
stock to The West Penn Electric
so mightily to make us the great
cither the intrigue or violence by
nation that we are, we need not
Co., the parent company, and with
'Which
the
Kremlin
strives
to
fear either the ideology or the
other funds of the company, will
breach its goals. We are too smart
arms
of Russia. So long as we
<
to be taken in by their harsh and
be applied toward the cost of the
keep government controls at a
'false doctrines*.
So I do not fear minimum
and
maintain
intact construction program of the com¬
a

for

actual

the Treasury.
"The increased

on

surplus of about $3 billion for this

This

satellite countries.

-

aration
months

for 1952

crease

fiscal

its organization and the
huge sums of money spent by its first mortgage and collateral trust
crease
is attributable to greater
supporters, the Communist party bonds, due 1981. The bonds are
than expected collections from ex¬
; could mean
has been unable to gain any sub¬
The group cise taxes, especially liquor taxes
We may never succeed entirely stantial foothold in our nation. priced at 101.421%.
and manufacturers' excises, caused
in
making the world "safe for Why? Because here we have a was awarded the issue at com¬
by an an unusual expansion of
democracy"; but our American better faith than
Communism, petitive bidding Tuesday, April 3.
dealers' inventories as well as in¬
system is far superior to Russia's and a fuller way of life than pre¬
a Proceeds
from the sale of the creased consumer
buying partly
in every respect.
The Reds ftiay vails in Moscow or any of her
bonds, together with $3,993,650 to in anticipation of prospective tax
make us dance to their tune for
can

Despite

payments on
during

account than was the case

billion tax in¬

quietly
by
without
preaching
more convincingly and practicing
more
faithfully the basic prin¬
ciples of our own American Revo¬

some

recom¬

mended

revolutionary idea.
Actually it is just plain imperial¬
ism
based
upon
a
system of
slavery which is as old as the hu¬
must

finances,

and

it today, is no

We

sit¬

uation in Fed¬

our

mining character and values.
Communism, as Russia practices

race.

re¬

a more

favorable

govern¬
ment and national life and under¬

man

Snyder

ported

children. Then

into

less recourse to

2, Secretary of the Treasury John

attention to

better able to discern

creeping

and with

sources

the governmest for

Ways

on

and root out the evils which have

been

of about

year revenues

and Means of the
House of Representatives on April

and develop good

now

receipts and

revenue

than anticipated in budget.

more

Appearing before the Commit¬
tee

forefathers. We sure¬

in

mon-sense

subsidies.

-as

$3 billion

policies,

fiscal

not, however, spending

Chinese

our

ly should pay

completely sold on the bureau¬
our
favor cratic trend in government.
President
I like to think that, in addition

in

•Roger W. Babson

the

ously forecast. Expects 1952 fiscal

old-fashioned character and com¬

ualties

ried about the temporary success¬

Within

Enemies

a

part,

ideals of

and various inflationary subsidies.

Despite the heartbreaking cas¬
of
the ill-fated Korean

of

quickly because, for the most
we have been true to the

so

unfair tax structures,

essential purposes

Treasury estimates, because of larger

reduced expenditures, there will be a surplus of about $3 billion
in 1951 fiscal year, as contrasted with $2.7 billion deficit previ¬

quickly than any other nation in
the whole history of the world. I
believe that we have progressed

Babson finds greatest present
own

A.?

has achieved the
great power more

country

status

Korean campaign, Mr.
danger is "the enemy within"
structure. Says this enemy is eating our

Expressing confidence in outcome of
our

Snyder Reports Improved Federal Finances

mist.

Russian Dangers

Thursday, April 5, 1951

.

draw

on

readjustment

^

Volume 173

Number 5000




.

The Commercial and Financial Chronicle

.

.

(1441)

Report to Metropolitan Policyholders
for 1950
ANOTHER YEAR OF

'twere could be no

better
summary of the
Metropolitan Life Insurance Company's

and in the increase of the insurance

tion which the

activities and achievements
the

during 1950 than
following message with which President

Charles G.
Annual

Taylor, Jr.

opens

"Metropolitan has been able

the Company's

this

every reason to be

with the results of the

major test of a Life insurance

with

com¬

low cost record."

Whether

very

or

will find the 1950 "Annual Report to
Policyholders" interesting and informative.
If
you would like to have this booklet, sim¬
you

few exceptions, individual policy¬

equal to, or greater
than, the dividends paid last year. It is

policyholders and beneficiaries

not
you are a policyholder in
Metropolitan Life Insurance Company,

the

holders' dividends will be

pany's value to the public is in the payment
of benefits to

vidual, Metropolitan has thus continued its

to maintain

year,

appropriate additions to surplus
funds and
contingency reserves held for the
protection of policyholders. This means that,

operation of Metro¬

inflationary trends which

have affected ev£ry business and
every indi¬

also made

politan in 1950.
"The

creased costs due to

with minor modifications, the pre¬
vailing dividend scales. The Company has

pleased

SERVICE

gratifying to report that, notwithstanding in¬

protec¬

affords them. New

company

high records in each respect were made in 1950.

Report to Policyholders.

"You have

OUTSTANDING

ply fill in and mail the coupon below. A copy
will be sent to
you without charge.

High Lights
/

Payments to policyholders and their beneficiaries... $837,000,000
—the

Company.
\

The total in force

greatest sum ever paid in benefits in any one year by the
7

—

by

a

$45,425,000,000

record amount of $3,725,000,000.

After

was

7

was

deducting investment

the lives of 33,150,000

on

Ordinary; $10,464,000,000

was

dustrial; and $13,031,000,000

'

During 1950 the ownership of Metropolitan Life insurance
increased

was

persons—$21,930,000,000

was

Group.

*

was
.

In-

-

j
|

expense, the net rate of interest earned

3.07%."

7-

'

\
>

STATEMENT OF ASSETS AND OBLIGATIONS...DECEMBER
31, 1950
'

.

(In accordance with the Annual Statement filed with the Insurance Department of the State of New
York.)

ASSETS IN THE COMPANY'S POSSESSION
Bonds

,

.

...

,

.

.

.
.

,

.

U. S. Government

Provincial and

Railroad

.

.

OBLIGATIONS TO POLICYHOLDERS, BENEFICIARIES, AND
OTHERS

57,563,030,021.20

Statutory Policy Reserves

$2,868,782,497.44

Canadian Government

Public

.

.

.

Municipal

67,643,429.06

....

528,591,344.71

.

Policy Proceeds and Dividends Left with Company
Policy proceeds from death claims, matured endowments, and

1,369,897,129.54

Utility

Industrial and Miscellaneous

.

Bonds of the
ment

other payments,

Company's housing develop
corporations

and dividends—left with the Company by
beneficiaries and policyholders to be paid to them in future

121,095,071.93

years.

Stocks

Mortgage Loans

-

:

.

Reserved for Dividends to Policyholders

Real Estate

on

on

Urban Properties

Mortgage Loans

on

Farms

on

Made to

$1,368,405,298.20

.

Claims in process

on

the security of their policies.

Other Policy Obligations

aggregate)
Housing projects and other real estate
quired for investment

284.524.458.56

Taxes Accrued

ac¬

228,599,995.17

Properties for Company use
....
Acquired in satisfaction of mortgage in¬
debtedness (of which $5,149,699.81
under contract of

sale)

.

.

.

41,516,517.97

.

...

.

.

.

All Other

.

,

179,412,703.97

.

.

150,252,553.13

........

.

.

.

.

.

,

41,962,052.40

.

68,842,135.82

.

(Payable in

Obligations

1^51)^

:V

...

.

.

38,016,113.00

,

.

,

.

,

,

10,000,000.00

,

,

.

.

25,479,914.09

.

'»

,

.

.

TOTAL OBLIGATIONS

Premiums, Deferred and in Course of Collection

.

.

.

$9,715,945,938.31

28,407,945.42

.

Cash and Bank Deposits

TOTAL ASSETS

.

SURPLUS

Interest, Rents, etc..

r

been reported to the Company.

Contingency Reserve for Mortgage Loans

is
.

172,477,246.00

.

Including premiums received in advance, special reserves for
mortality and morbidity fluctuations.
*

(after decrease by adjustment of $14,000,000.00

in the

.

of settlement, and estimated claims that

have occurred but have not yet

423.056.767.55

policyholders

.

in 1951 to those policyholders eligible

Policy Claims Currently Outstanding

125,774,985.58

Policies

Real Estate

Set aside for payment
receive them.

.

to

1,494,180,283.78

Mortgage Loans

Accrued

.

161,909,397.72

All but $7,452,502.72 are Preferred or Guaranteed.

Loans

575,626,718.00

.

2,396,007,960.42

.

.

$8,783,541,759.00

This amount, which is determined in
accordance with legal re¬
quirements, together with future premiums and reserve inter¬
est, is necessary to assure payment of all future policy benefits.

211,012,588.10

.

.

.

.

Special Surplus Funds

.

Unassigned Funds (Surplus)

81,705,465.77

TOTAL SURPLUS FUNDS

.$10,338,071,651.68

FUNDS

,

$115,389,000.00

.

.

„

.

506,736,713.37
.

.

622,125,713.37

.

TOTAL OBLIGATIONS AND SURPLUS FUNDS

.

$10,338,071,651.68

NOTE—Assets amounting to $485,501,548.28 are deposited with various public officials under the
requirements of law

or regulatory authority.
Department, Statutory Policy Reserves are $8,783,606,754.00. Policy Claims
$41,962,052.40 and All Other Obligations are $25,414,919.09.
*

In the Annual Statement filed with the Massachusetts Insurance

Currently Outstanding

COPYRIGHT

1981 —METROPOLITAN

LIFE

are

INSURANCE

COMPANY

METROPOLITAN LIFE INSURANCE CO.
1 Madison

Avenue, New York 10, N. Y.

Gentlemen:

Metropolitan Life T Insurance Company

Please send
to

(A

MUTUAL

COMPANY)

me a
copy of
Policyholders for 1950.

your

Annual Report

NAMESTREET.
Home Office : 1 Madison

Avenue, New York 10, N. Y.

'

•

CITY—
Pacific Coast Head Office: 600 Stockton Street, San Francisco 20, Cal.

STATE.

•>

"v

If

The Commercial and Financial Chronicle
18

Happening to Your Dollar?"

"What Is

ft

,

■

NAPA

falling off in April and May when

expects

survey

civilian goods production become

government restrictions on

inflation since 1933, suggests specific
steps to curb it now. Mr. Keyserling replying: Contends problem of inflation is less Important
than fighting international Communism, cautions against political bickering, and endorses ample
defense preparation, greater production, raise taxes, cut non-essential spending, and stabilize
the government's steps in accentuating

Mr. Byfield, citing

prices,

with

by
Messrs. Byfield and Keyserling
statements

of

texts

York

Society of Security Anal-

:

ysis.

Mr.

V

who

man

best

the

of

One

Keyserling is Chair-

BYFIELD

MR.

}t You don't have to be

omist

like

jsocurity
know

Mr.

dollar

the

or

myself

like

Ijtoday than

a

to
less

buys

ten years ago.

a

pound of meat
butter

or

or

a

or a

dress

knows

the

facts.
How did all

prices from
; Y
rising further? If we do, just how

l&o

we, all 15L million of us, go
about it? Inflation was born in the

1933.

of

First,

cut

we

adrift and "went
ioff gold." Second, in 1934 we de¬
our

paper money

59.6

The Welfare State and artificially

rates

money

Siamese

are

'twins.

Federal

owed

$40

brought
of

Then

came

the

war

additional $230 billion

deficits,

because

fight
ment

bonds to

whep

a war and you

you

sell govern¬

banks

rather than

;to the people, new credit or bank
money is created. There Weren't
enough goods produced to offset
the

new

in the pockets of
lihe people. Wartime price controls
hid

money

the

■took

real

the

situation

lid

off

until

for

and

we

almost

three years from 1946 to Novem¬
ber, 1948 pent-up demands caused

;

a

scramble

zoomed.

for

and

and

goods

Then

recession

had

we

prices

a.

inventories

mildi
began

to

pile up. Washington, mindful of
(the early 1930's, got frightened.
.More priming the pump! They

quickly paid out

;

$2%

a

^Soldiers' Bonus. Credit

Bank

;casy.

-and

coriiing out of

was

On

top

Korea,

of

and

this

Mr.
and

Keyserling,
' austerity

we

both

at

spending,

in

need economy
• government

531

Senators and

Congressmen

their-

constituents

"How

much

stead'of

did

would

goods,
In

a

only
year,

$11

rose

was

no

then, will toe be
licking inflation.

fear

a

billion,

bank

top of
But

and

of

System,

ting down

past month.

Employment remains high, but

March
back

substantial cut-

because-of the civilian production

and

by

a

the

on

length

..with

finished

rapidly

goods

C.

headed

by

Robert

Director

of

Purchases,

f,lhng pIpe lmes from P™ducer

Co.,

to retailer, the decline in con-

is

Swanton,

Winchester

Division
New

'

restrictions.

The Com-

buying commitments.
mittee,

future

of

Repeating
Olin

of

Arms

Inc.,. sumer scare buying and increas-

Industries,

Haven, Conn.

public

ing

,

^

$7

stockpiling.

the

in the face of

a

high

to

resentment

way

to

of

Korea

other

con¬

stantly to the
of

menace

wo

rid-wide

aggression
the

under

banner

'of

international

this

lose
wo r

1 d-wi de

struggle,

we

•

i*

Leoh

V

«

H.

we

win this

struggle—and
particularly if

>'

'Keyserling

we

win

.it

without4

third world
to fear in

war-

we

.the long

Whenever1

we

a

have nothing

hand,

mobilized

and

creased it by supporting the gov¬
ernment bond market and buying

for

enduring peace.

an

•.

increase infla¬
They will be
Expensive. But it would be suicidal "•
to try to fight inflation by sacri¬
ficing national defense or inter¬
national cooperation. No 'person .
or nation can profit by losing
its

will

ptirpose

tionary

growth has paralleled that of the great

pressures.

industrial and

port

Every

year

must

we

cope

program.

To combat inflation soundly, we
must

produce

bv

more

working

by planning to ex¬
pand
production <Witn
ever-in¬
creasing foresight. To combat inflation, we must
raise

and

taxes

enough to

share

of the

costs

of The

cover

our

America's

of

vital

most

industrial

able labor

supply and

contributed to-the
-the

world

would like

a copy

as

been
faster

a

plant

Met

the

In

in

this

Prope^Y

Revenues

Income

we

•

-

»«."3565

•/27,701.0**
* •

5,338,214

•

Volue per

*"7 5)7,70*
5948,827

4,472,673

$35.80

$21.21

$23.19

Share
Net Income per shar®
Shares Outstanding •
Cash DividendsPo'

Book

nation to do all

made.

and

(origin0' cost)
Gross

stab¬
and profits,

has

4108,554,885

a

,49,660

$
$

$ 3.43
'

1 555,459
1,555,459

,

2.88

I.555'4®'

*

j 2As
$2.15

5

*2°°

* —
OW'4""1

$

SOUTHERN

emergency

standing and nationwide coopera¬

tion has surmounted the' inflation¬

tion, I

ary danger and moved forward to

we

am

With

We

do
under¬

must

public

firmly convinced that

shall succeed in the essentials.

$ 3.27

'$3,344,095

fair
have

still

pace.

5,083,312

—
$23.91

3.82

NATURALI
GAS

at home. But we cannot afford to

better.

com¬

1949

1950

previously—both abroad and
our

of the

BRIE*

IN

YEAR

wasteful

or

of these things. Real progress

moved

and vol-

sold reached all-time highs.

Company at its address below.

Company's

must cut down

we

relationships fair to all.
Particularly sinCe Korea,
begun

you

income,

plete annual report, please write the

Southern Natural Gas

also agree that we must

already

If

rapid progress of

AA—-

addition,

non-essential

have

revenues

net

financial

1950, during

additional
struggle for

ilize prices and wages
in

are

year

bmc of gas

hich will

necessary

spending, both private and public.
I agree with Mr. Byfield that we
must restrain inflationary credit.
I

herewith

which

have all

area.

TH E

w

delivery capacity.

highlights for the

abundance of

an

freedom.

on

Presented

depend¬

stockholders, tells

expansion plans

further increase gas

increases in importance as one

sections. Favorable climate, a

its 13,500

to

of current

Com¬

agricultural territory it

Company's Annual Re¬

for 1950, which has just been

mailed

the New South, service

of Southern Natural Gas

>;4,a

Course

The

serves.

area

SOUl.

triumphed

our na¬

December

great programs dedicated to,

The
this

slacken

aggression,

since

65%

dropped

are

threatened by domestic inflation.
But
whenever
freedom
has
over

The

number reporting increases has

must

of

money

these

perspective of the past, we

run.

have

m,

pledge to this purpose
all the spirtual and material re-.
sources
which may be required.
We

would lose all.
If

„

to hold the llne £alrIy wel1'

do:
We must highly resolve to con¬
tinue the struggle for world free¬

In

should

have helped

the things we must

Communism.
we

Commodity Prices
,.price reguiati0ns

organizations will be

harder,

BY MR. KEYSERLING

So the inventory recession of 1949.

priority to

is to face up vigorously and

'

) j

.

Do!

Must

the

On

all business

sound

be set for another perlod s,mllar

the

by

given

MRO-DO-97

omnibus

spending spree.

a

What: We

"The .relief

lows:

tives. such as calling the decision
to
resist
wanton
aggression
in

efficient, low-cost natural gas

'REPLY

'*

'' *'

.

Agents

note of warning. The stage may

a

x

the

to

according

Purchasing

prices,

which also noted as fol-

survey,

indulge in invec¬

We must not

than

cut¬

military contracts

more

production,"

its slave.

strength to resist foreign ag¬
Federal gression,
we
have
also
been

boom, actually in¬




only

our

all, the
instead

sipply

on

"Many

anti-inflationary

V.*

.

goods

loans

Welfare State!

worst

Reserve

the

f

layoffs or time cuts are expected,

orders

new

Inflation, Mr. Byfield, is a great
problem—but it is hot our great¬
est problem. Our greatest problem

(*

the

State of Warfare piled
a

in¬

*

*

armaments
a

the

during

in

reduction

pany,

his-

billion, all while the government
increasing its expenditures
for

o

consump-

indicating

receiPt of more materials during

As-

sociation

with
inflation along with these other
problems. The government, led
by the President, has a rounded

If

was

Now

National^

Swanton

'-higher,

was

is confirmed by a sharp

Agents,

indivdual

the

makes

which

state

Of

and

of

of

and

the

on

shortage of
of shortages.

inventories

save?"

you

get for-us?"- then,

you

ask,

"Now much did

asking,

came

in

sprees

on

Capitol Hill return to their homes

public

dne

on

Federal,

the

State -and local level. If when the

made

boom

American

proceeded to go
greatest spending

;tory. There

C.

tion

Com-

.

dom

And most important of all,

(8)

way. We
supporting
farm

the

application

loan

government

blank in the other.

reserves were lotoefed

billions

ears"

our

price would drop.
(7) Businessmen can help by
stopping the practice of coming
down to Washington with the flag
of free Enterprise in one hand and

•prices. Still the Welfare State!

\

slightly lowers though

against the Welfare State, Mr. By- have ! been placed—and with a
The supreme issue of our wider coverage of industry—but
time is the conflict between the
their .current influence shows up
state which exists to serve the
more
in
plant
expansion and
welfare of the individual, as pur
Constitution
provides,
and the 'make-ready' operations than in

and the

| durable goods got under
sfipent

the

—

highest in history. Prewar con¬
sumption was 130 pounds. We ate

billion

great boom in houses

a

capita

144 pounds per

was

already

government

billion.

an

For example,

consumption of meat last year

a

By the time Pearl Harbor
the

restraint in buying.
the

would "be

use

rowing, high, wide and handsome.
^low

price

made id March- Inventories fare

the

,

many-

cents

100

Washington
varieties of
pump priming to stimulate em•ployment. Easy money, easy bor¬
to

the

iast April indicate price increases

field.

As for the average citizen,
all of us can and should exercise
(6)

Third,

cents.

began

exceptions - to

Purchasing

not engage in tirades

must

We

pretty well' then. If each house¬
wife would buy only 9 pounds of
meat instead of 10 pounds, meat

valued the dollar from

ito

Robert

not

break, too!

a

Byfield

S.

Robert

wish to stop

-deflation

Qui;red

ceilings—the lowest number since

Survey

that inflation

So, in dealing with inflation, we
must maintain our perspective and

this. Give the White collar worker

really

we

leveledoff> despite the many re-

Business

tries.

save and
of those who

materials,

of

comprise

combination of

past wrought such havoc in
Germany, China, and other coun¬

who

limited -allocations

the

purchasing

in the

or

for

scarce

"Industrial material prices have

i t e"

opinion

military

weakened by

first

ders
of

the

compos

pro-

schedules, where it must

„

this happen?
Do

was

cording'to

absorp-

competer with^other priority or-

This

iective.

free and productive
ever ruined primarily

secure,

these circumstances

instead

those

No

■

h ousewife

coat

Primarily From Inflation

No Ruin

fast

supplies and will extend to
duction

ef-

become

the

encourages

use

tion of existing stocks of essential

items

vilian

get off the track.
These are things we must not
do not.
'
'
do:
' '/ ■'/'
!
;
(4) We can revise our farm
We
must
work
together
as
parity supports downward, stop
Americans and not fall nrey to
supporting a lot of commodities,
including-sugar, milk, corn, etc., political bickering. To talk now
about what happened in 1933 is
and give the housewife a break.
(5) Escalator clauses in wage politics. This is 1951.
We must not go astray on ir¬
contracts are
inflationary. They
issues.
The
soldiers'
seek to shift the burden of infla¬ relevant
tion
on
unorganized groups.
A bonus of the '30's is not the rele¬
V'. V.
formula must be found to remedy vant issue now.

is now
Any
buys

3%

Say

terms.

better

them

of short duration; for, its general

de-

a

ofaimanytUci-

direction.

keep our sense of

we

only under some

offering

by

bonda,

government

penalizing

used to cost 50

who

lending.

on

We
can
encourage
the
that is the people who buy

invest for the benefit

A haircut that

; cents
$1.25.

savers,

314%

five or

|one,

if

defeat, famine, moral decay or
factional internal strife. It was

of 2.9% as we do
with E Bonds today. Let us stop

'

*

(3)

an econ¬

Keyserling

analyst

that

further

production

March,

in

Kaiser, and after the
We can do it again

the

of

tions

(2) We can force the banks and
companies to cut down

.insurance

By

high

by inflation, Mr. Byfield. Inflation
has dealt the final blow to na¬

excise taxe^.

of the President's Council
of Economic Advisers.

industrial

Although

end of Hitler.

nation

to do this

ways

sales tax and increase

is to levy a

buying and increasing public resentment to high prices.

scare

cline in output is anticipated in
records of production,
business
prosperity and
living April and May when government
restrictions on
standards. We did this after the

ary

Stock

of inventory recession owing to decline

high

new

end

(1) We can levy anti-inflation¬
taxes, that is, tax the people
have lots of money to spend.

member of the New
Exchange and New

a

York

>■

inflation here are some
of the things that we can do:.

ginia, March 27, 1951; broadcast
over WABC Network.
Mr. Byfield is

,

To stop

Air," Charleston, West Vir¬

the

tried to put a fire out

Things to Do Now

"America's Town Meeting of

at

in

continued

gasoline!

Sees danger

effective.

and profits.

wages

bonds. They

Following

NOTE:

EDITOR'S
are

;

Thursday, April 5, 1951

.

Forecasts Decline in Industrial Production

LEON H. KEYSERLING

ROBERT S. BYFIELD and

By

•

.

.

(1442)

COMPANY

SOUTHERN NATURAL GAS COMPANY
Watts

Building, Birmingham, Alabama

Volume 173

Number 5000

.

.

.

The Commercial and Financial Chronicle

and 'compares with the number of

Purchasing Agents are
Studying the proposed OPS price
formula carefully. While it is ex¬
pected that many small marginal
increases may be justified, it is
believed

increases

cent

canceled.

office

have

may

have

Much of the increase in

the

prices in March is traceable to
agricultural products and imports.
Competition for the future pro¬

575

duction

of

permissible

items

Uptown Branch

opened
Madison

of

the

is

in

new

line

at

Opening
office, the firm said,
the

trend

have

toward

1.

Inventories

.

ji.m.

7:00

in

With

Thursdays

on

R. Jones and Thomas H. McGlade

Hayden, Stone

-<'•

street

own

entrance.

ager

the mutual fund depart¬

of

institutional

and

reau

department;,

Bracey, Eustace A. Fav-'
George Webb

bers of the

partners

its

the

Herbert S.

research

"Industrial inventories

the mutual fund depart¬

of

ager

ment for A. W. Benkert & Co. and

prior thereto

Syndicate Man¬

was

ager for E. W. Clucas & Co.

'

1' •'

were

up

in March, by a small percentage.:
In view of the high production, it
is

there

apparent

of

movement

was

heavy

a

materials,

partly

due to normal rail movement fol¬

lowing the

strike

catching

some

back orders.

on

rial

and, probably,
of production

up

Purchased mate¬

inventories

generally re¬
ported badly out of balance. Fin¬
ished
in

goods

are

stocks

producers'

warehouses.

•

■

■

v

-

/

v.-

■

■■

"Pay rolls remain

<

,

the

of

last

employment

May,

Reports in¬
working hour

due

in

compensate

i

Iv

!

.1

April

for

'

i.

I

.

<1

(

<i

'{

use of many mate¬
rials for civilian production. Ex¬
for

of

facilities

defense

labor

in

scarce

petent
to get.

office

begins

three

after

months

ments

ture

<

:

The
their

Investments in subsidiaries and allied companies

Extended

*

•"

..

■*'"*

-

:

>

f

•'

%

•

.

•

\:

•

•

Other assets...77

r;

•

;

180,442,235

12,800,270

;

11,459,648

•

........,...

$422,940,390

manufac¬

to

184,903,500

'

-

'

.

.7.77;r..7...7......;.-.

262,698,399

274,815,229

•

s

^

12,450,032

i

: 459,718,729^ ,.443,140,634
.

.

-

145,165,302

.

J5,113,668

;....

„...

to

production
keep .within
NPA
regulations.
Maintenance, Repair and Operating Supplies DO-97 is sweeping
supplies off distributors' shelves,
because everyone has the same
♦priority standing as a tank pro¬
ducer.

50,796,659

-

210,122,952;

.....

Lands, plants, riparian rights, and facilities."*
Less: Amortization, depreciation and'depletion,.

meet fu¬
schedules
and

reported,

$ 25,016,154
- 38,068,193
31,284,296

■.

materials and supplies.

confused

prospecting.
have
lowered

are

31st December 1949

54,614,72i '

'.

Inventories of aluminium,

sights to a 90-day coverage where
possible to secure firm' schedules.
Cancellations and delivery defer¬

;

f

'»

*$349,517,217

;

turers for stock
will

replacement, they
an
undue
priority

create

".*i

LIABILITIES

the producers' volun¬
tary allocations of unrated criti¬
cal materials.
K

pressure on

Commodity Changes

Specific
"Fewer

price changes

ported than
last April.
t

in

any

Current Liabilities

were re- /

month since

Preferred shares of subsidiaries:
:

Company of Canada, Ltd. 4% Shares
Saguenay Power Company, Ltd. 434% Shares

.

.

...

-

>.■

:..

13,589,350
4,349,300

13,888,350
4,422,200

^

cornstarch, contain¬

fatty acids,

foodstuffs,
lard, tung oils,
ers,

linseed,
textiles,

mercury,

rubber,

.

17,938,650

.

18,310,550

.

"Down

,

146,940,352

191,713,629

Aluminum

"The ups were of small margin:

trucks.

:$ 40,697,130

Indebtedness not maturing in one year

*

were:

Other liabilities.;r;.~rir;.v;h

Sugar, some coal,

hides, soap, tin.
I "Still hard to get: Heavy acids,

3,319,775

■?

6,268,187

1 r

*

■'

.

Capital Stock (3,722,050 shares outstanding) and Surplus...

hluminum, antimony, benzol, cop¬
per
and brass, castings, cello¬
phane, chlorine, containers, elec¬
trical equipment,

■

-

•"

'
■

:

:

■

-

.-

■

'■>

-fi'

■■

.'.r

JJtohi

a

fv'fT

.

>

-

>rii
<1

Hr

160,042,997

.7.

137,300,998

«

■-.
•

$349,517,217

$422,940,390

■

office furniture,

iron, lead, lumber, plywood, plas¬
tic powders, nails, nickel, paper,

SALES,

*

TAXES

AND

EARNINGS

.

pipe, rubber, steel, sulphur, tex¬

'

-

'

' r

1949

1950

tiles, burlap, wire.

Sales.7

$226,610,826

$199,406,294

$23,499,776
2,712,243

$17,260,110

$26,212,019

r;.~; ; r.... r;.~ r. r; ♦.; r™.;... r. r; r. r... .~:;; .7

$ 20,339,704

$ 32,608,353

$ 27,006,181

Canada
.

"Canadian

continuing

activity.

members

high

rate

report

a

—;

Provision for Income Taxes—Canadian

of business

,

.

v

vr;. ; r.

tzA.
-

—Foreign....... /....;..;..,

The production increase

..

..

?

,

1

•

*

'

•

.

"•

*

•

'

.

'

'

'

A

V-'

"

'

■

'

*

3,079,594

*•'

has slowed down and new orders
are

coming in at a slower pace.

More price

increases are reported

than in the United States.
tories

about

ment static;
door

the

same.

Inven¬

Employ¬

will increase as out¬
start up.
Buying

activities

policy is one-third longer range
Defense busi¬

than in the States.
ness

will

major factor, and
need government controls if

Net profit for

the

Net

share.

profit

per

year.

.inr;r;7i .rinTirznnrznnn-:r;:r*

\

r..... r,

Dividends paid, including extras, per share

$3.45*;

r..; .-777 77

4

i

;

*($1.95 in Canadian funds and $1.50 in U. S. funds.

)

$7.25

$2.60

.

r

' *

.

is not yet a

it increases."

4

Current dividends

are

paid in U. S. funds).

'

.

•

•

Copies of the annual report

may

be obtained

on

request from:

■'

.•'

With Hornblower & Weeks
Hornblower

&

of the New York Stock Exchange

other leading exchanges, an¬
nounce
that George Sloane has

and

become

ALUMINIUM

Weeks, 40 Wall

Street, New York City, members

associated with




the firm.

1

!'/ I,

v•

shape,

procurement

majority

"

:

,•

$ 72,179,148
50,827,945
32,501,138

.1......

r...:

Marketable Securities

Receivables.

of

"

x

•.

-

Cash

policy

definite

a

'

:

Dollars

31st December 1950

Policy

commitment

,\.v

'

Current Assets:

hard

are

■"

>

«

ASSETS

Com¬

areas.

t

'

skilled

all

take

to

SUBSIDIARIES

tooling

workers

Buying
"Forward

and

made

have

e

re¬

strictions in
pansion

Canadian

in

and

the

■»

•

'

•

Condensed Financial Report
31st December 1950

!

•

.
•

I

V-

l:,<

upswing

and

are

to

I

January.

layoffs

cutbacks

peak
A

started .in
dicate

the

at

•

1

I

i

:

CONSOLIDATED

AND
Employment

r

LIMITED

ALU M IN I U M

piling up
distributors'

are

and

MAIL

BOX

6090

LIMITED
MONTREAL,

CANADA

mem¬
,

(Mr. Scott was formerly Man-;

(

"

„

.

as

staff.

is

increasing.
.

9:30

19-

ment; Harton I. Booker, Williamh

R. W. Scott, Others

The

from

open

and Henry M.
Hayden, Stone & Co., 25 Broad
of the firm, will Street, New York City, members
be in charge
of New York Stock Exchange and
and they will be
assisted r by Edgar
Dannenberg, • other leading exchanges, announce
Gerard Daly, Henry Van Dam and the
following additions to • the
Philip
Gritz.
The
office
will firm: Randolph W. Scott as Man¬

Avenue.

with

be

brokerage
area.

Harold A. Rouse

M

Bach,

in

building

newly completed

to

pjm.

office

branch

a

-will

for consultation.*

; Steiner, Rouse & Co., members
of the New York Stock Exchange,

be

to

New

:

substantial part of re¬

a

locating - branches of
firms in the mid-town

Steiner, Rouse Opens

last April.

(1443)

-

1

i 7;

20

(1444)

The Commercial and Financial Chronicle

(even though the earnings of the
are
relatively well-shel¬
tered
against the excess profits
tax) and somewhat higher oper¬
banks

Mutual Funds
By ROBERT R. RICH
WELLINGTON
its

Prospectus
your

upon

request

investment dealer,

or

from
from

SECURITIES

RESEARCH

&

CORPORATION

120 broadway, new york 5, n. y.

FUND, which, by

pace-setting
shrewd

and

oval

its

made

sales

market

promotion

appraisal, has

trademark

Blue"

"Wellington

NATIONAL

and

of

two

the

best-known symbols in the indus¬

try, is designing and distributing
widely mutual funds' sales litera¬
ture
written
exclusively for

in

women,

recognition

of

the

growing importance of the invest¬
American

ment-conscious

The

shrinkage of dollar savings,

inflation, on a national scale
a
problem
largely
for

by

BULLOCK

woman

logical mutual funds' prospect.

as

poses

Recent statistics show that

women.

FUND

65% of accounts in mutual savings
in women's names,

fund banks

are

60%

privately-owned

of all

ernment

gov¬

bonds

belong to women,
80% of beneficiaries of all life in¬

policies

surance

70%

of all

and

women

are

fall

estates

to

women

beneficiaries.
Examination of Wellington Fund

Prospectus from

statistics indicates that

your

investment dealer

^

;

v

New York

•

THE FULLY

~

ADMINISTERED

These

A Balanced Fund

request
or

DistributorsGroup, Incorporated
63 Wall

Street, New York 5, N. Y.

maker

t

dollar.

29,

filed

S.

confined

Bank
to

Group

the

stocks

Shares'
of

banks.

New

York

now

in¬

outstanding," Mr. Hare
declared, "and it is contemplated
that

these

are

investments
will

be

in

most

all

of

desirable

cago,

WALL

STREET

Investing

Corp.,

York, filed with the Securi¬

ties

&

Exchange

registration

Commission

statement

Today's

home-

substantial rises in the

Funds, Fundamental Invest¬
and Manhattan^ Bond Fund,

ors,

announced this week that

on

pur¬

200,000 shares of capital stock. No
underwriter.
WELLINGTON

FUND,

Philadel¬

phia, March 30, filed with the Se¬

geographical localities
curities & Exchange Commission
Boston, Cleveland, Chi¬
Detroit, Dallas, Los Angeles a registration statement covering
as

and other cities."

2,000,000
common

shares
stock.

of
No

$1

par

value

underwriter.

RANDOLPH W. SCOTT has joined
Hayden, Stone & Co., member of
York Stock Exchange and
other leading exchanges, as man¬
ager of the mutual fund depart¬

New

WELLINGTON

trend

her

the

of

times

is

a

American

woman

to

INCOME Foundation Fund, Balti¬

March

Securities

&

29,

filed

Exchange

with

of

excess

$25,000

on

conclude

eystone

to conform to

sion

chases of the

Custodian
tinds
Participation in

INVESTMENT FUNDS
investing their capital

announced

same

adjusted

deale^'qo^rimis¬
or^

pur¬

amouhts^it

was

by Lord, Abbettq&> Co

The entire amount of the-commis¬

sion, which is a percentage of the;
public offering price at which the
reallocation orders are accepted,
is to be paid to the dealer effect¬
ing the reallocation transaction.
The schedule is
Under

as

$25,000

Affiliated

3'/o

or

ably parallels the
increasing
public optirtifsfiP about peace.
But in

2%

more___.

(Series B1-B2-B3-B4)

PREFERRED STOCKS
( *

COMMON STOCKS
(Series S1-S2-S3-S4)

be obtained from
n

Tke Keystone Company
of Boston
Cong ress Street

Boston 9, Massachusetts




OF National

recorded

a

new

one

Trust

of

vul¬

most

our

nerable and important fronts—
the Middle East—the situation

is

desperate than at
the Azerbaijan

more

time

since

We

pared
SALES

BONDS

Fund, Inc.

mar¬

increasing
expectation of "peace" by two
months of irregularly receding
prices, which have been most
jev^ent ^in^thp .,stocks that
boomed afteFKorea. This prob¬

find

ourselves

Prospectus

upon request

Loud, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

any

re¬

again

the receiving end of what is
undoubtedly
Russian
aggres¬
sion; apparently quite unpre¬

4%

—'

stock

an

on

4V2V0
J.

$50,000-

99,999

paradoxical

ket has reflected

volt.

follows:

£25,000-849,999

$100,000

IN

the

allowed

now

PHILADELPHIA 2, PA.

the

learned
last
week
that,
despite higher taxation this year

Funds

high in the first

to

counter

the

move.

There may be many a slip be¬
tween

Communist-dominated

a

quarter of 1951, according to Louis
H. Whitehead, Vice-President in

control

of

and the

delivery of their oil to

charge of sales, National

the Red

Securi¬

ties & Research Corporation, New
York. Sales volume of $10,238,000
for this past quarter is the largest
for any three-month period in the

history of the
resents

a

$7,663,000

gain

company

of

34%

and

rep¬

there

is

for

the

fense

like

generous

head.

rate of return

stated

Mr.

on

White¬

can

—D.

"This is proved by the fact
a

large

portion

of

the

first

that

worse

our

than it

A

circumstances, we
how the national de¬
including the

re¬

arming of our allies, can be re¬
laxed; nor how the business of

,

that

see

effort,

defense

capital,"

fields,

Under the
cannot

the desire of investors to obtain

their

oil

was.

initial quarter, of 1950.
"This gain 'iiiJ^'les of National
Trust Funds may be attributed to
more

question

no

position is vastly

the

a

Iran

Army; but if Russia is
getting control of the oil fields,

over

total- reported

the

-

stimulated

rails,
show
M.

steel
any

and

industries

Diversified Investment Company

Prospectus may be.obtained from your local
investment dealer or The Parker Corporation,
200

Berkeley St., Boston 16,. Mass.

.

aircraft,

serious decline.

Barringer,

Delaware Fwad.

Chairman

dealer

'

SHAREHOLDERS of Bank Group

The

' American

Business Shares has been

or

Shares

is her dollar savings."

so

-

Commis¬

that if her table money is shrink¬

ing,

prospectus from
investment

.

to

money-conscious.
step," he said, "for

more

only

m

your

more,

a

covering

continued, but in¬

vestments will also be made in the

stocks of leading banks situated in
such

Accumulation Plan.

New

City banks in

whose stocks the Fund is
vested

City

syrV

"Those New York

Texas

investments

derwriter.

the value of her fied
:

COMMISSIONS for reallocation in

50

Syndicate of Amer¬

ica, Minneapolis, March

selected

bread, eggs, meat, and the chases of $250,000 or more the dis¬
Higher prices make it harder tribution
charge
will
be
only
for her to set something aside. The
21/2% of the offering price.

the

may

from

stocks."

common

like.

"It's

Prospectus

INVESTORS

every

sees

whole

(Series K.1-K.2)

income

generous

cost of

make

Certificates of

a registration statement cov¬
ering 2,000,000 shares of outstand¬
ing stock. Underwriter: Axe Se¬
curities Corp.

>

shopping
investment dealer

Thursday, April 5, 1951

-

investment-mind¬

ade has affected

from your

in

women

in

.

sion

shareholders, RECOGNITION OF increased in¬
ment.
State of the terest by larger, institutional-type
Union, include business women, investors,
including
corporation
Investment Registrations
doctors, lawyers, teachers, house¬ profit-sharing and pension
funds,
wives, nurses, etc.
,■
r''f
has been evidenced by recent re¬ DODGE & COX
FUND, San Fran¬
Mr. Wilkins said that the infla¬
ductions in
distributing cost of cisco, March 28, filed with the Se¬
tionary spiral is a key factor in mutual fund shares on sales of
curities & Exchange Commission
making women more investment- substantial amounts.
a
registration statement covering
minded. "The housewife," he as¬
Hugh W. Long and Company, 25,000 beneficial shares. No un¬
serted, "knows how the past dec¬ national distributor for Diversi¬
located

Group Securities, inc.

prospectus on

were

■

ed."

of

a

Emlen

sales

record

as
a
shareholding OF ENDURING CREDIT
to the
Of
Wellington's
61,000 mutual" funds
industry is Calvin
shareholders, approximately 24,- Bullock's
regular economic publi¬
400 are women who own Welling¬
cation,
PERSPECTIVE.
Clearly
ton shares individually, and an¬
written, but with the urbane so¬
other
13,420
own
their, shares
phistication of the orthodox econ¬
jointly with husbands or a male
omist, PERSPECTIVE treats a dif¬
relative.
ferent economic problem in each
"The shrinkage in money values
issue. The March 15 copy is en¬
is affecting millions of American
titled "The Labor Force," and dis¬
women,"
A.
J.
Wilkins,
Vice- cusses the basic factor of
produc¬
President of Wellington Fund, ob¬
tion, labor, in light of our continu¬
served.
"I believe that the sub¬
ing defense needs.
An excellent
stantial
purchase of Wellington
analysis for businessmen and man¬
shares by American women is a
agers.
Copies are available with¬
positive indication that women are
out obligation from Calvin Bul¬
acutely aware of their financial
lock, One Wall Street, New York
problems and that this awareness
5, N. Y.
V-/; '

has made them

FUND

.

with the Securities &
Exchange
Hare, President of
Institutional Shares, in his report Commission a registration state¬
shares of those funds which are
ment covering $10,000,000 of Sin¬
to stockholders,
thought, also, that
managed with the specific objec¬
the amount of dividends would be gle Payment Certificates, Series'A;
tive of generous income return."
and $400,000 Single Payment Cer¬
at least as much, in that these
rep¬
"Although high grade bond resented
Underwriter:
only, a
conservative tificates, Series B.
yields generally are below 3%, amount of banks'
Investors Diversified Services, Inc.
earnings and the
Moody's Average of 200 Common balance of the
latter, which were
NATION-WIDE
Stocks yields over 6%," continued
Securities
Co.,
retained, had increased the net
New York, March 30, filed with
Mr. Whitehead. "The growing in¬
worth and earning potential.
the Securities & Exchange Com¬
terest in mutual fund shares evi¬
"Interest rates on
short
term mission
a
dences the awareness of the in¬
registration statement
governments, commercial paper
covering 300,000 shares of $1 par
vesting public of the great spread
and loans have
lately increased value capital stock.
between
bond
and
stock
No under¬
yields
substantially percentagewise," Mr. writer.
and
their
determination
to
do
Hare remarked, "and will enable
something about it."
banks to obtain a higher return ROWE (T.) PRICE Growth Stock
"A
substantial
part
of these
on
their
earnings assets.
Bank Fund, Baltimore, March 27, filed
mutual fund purchases," continued
loans, the most profitable source with the Securities & Exchange
Mr.
Whitehead,
"are
made
by
of a bank's income, have been in¬ Commission
a
registration state¬
'new'
investors
who
previously
creasing rapidly for some months ment covering 75,000 shares of $1
had
avoided
stocks
because
of
and are now at an all-time
high." par value capital stock. No under¬
their unfamiliarity with financial
writer.
At the stockholders
affairs but who have decided that
meeting on
the media of mutual funds may be March 21, an amendment to the
TEXAS FUND is in the process of
a
sound and practical method of Corporation's Certificate of Incor¬
preparing
a
monthly
purchase
poration was approved, removing
participating
in
the
relatively
plan, which will be known as the
the
restriction
which

quarter's

group.

Established 1894

f

are

women

expenses, earnings of banks
be as good as last
year and

possibly better.

predominant

or

CALVIN BULLOCK
One Wall Street

ating
will

'StgCK SEKIt!

.

FOUNOC D

11 .9

2 5

3

«;|

Volume 173

Number 5000

.

The Commercial and Financial Chronicle

.

.

ernment either.'

Uhlmann & Latshaw

Open N. Y. C. Branch

in

&

Korea

the

Governor

with confidence in

Under McGovern
Uhlmann

Citing the lack.of

State Department planning in the
first crossing of the 38th Parallel

that

said

leaders he

our

"T here

' are

thousands

of

hired

right

4,000

thousands

employees

day, 1

a

payroll

at-, the

now

who

rate

the

on

and

to

would

he
can't.. "I
am
City, members of the New York confidence
Stock Exchange and other lead¬ ashamed of our government and
the way it is run.'
ing exchanges, announce the'
Concretely, the governor said
opening of a
New

City

York

office

at

14 Wall Street

under

the

manage-

.ment

of

Wil¬

liam

J.

Mc¬

Govern.

For

five

past

the

budget planning of

vidual and if there
can't

afford

penses

to

see

McGovern has
asso¬

ciated

penses

are

accordingly.
the

by

partment

"Each
ment

citizens

ex¬

He would like

line

should have
use

the

and

a

well,"

moral

-

York

and

Santa Monica

Exchanges.

formerly

Richard

HILLS,

S.

With

Calif.

Kimball

has

.

—

conscientiously

money

said,

he

"and

if

can't afford

de¬

have to cut out waste and be

something,

we

been

LOS

was

LOS

Conrad, Bruce

J

to The Financial Chronicle)

(>

ANGELES, Calif.—Milo M.

Turner

is

Conrad,
Sixth

associated

now

Bruce

Street.

&

Co.,

He

was

with

530

West-

previously
**

■

)

Jose M. Covo

ANGELES, Calif.—Samuel

Vt

H. Layton Jr., is now with Pacific

Jose

M.

Covo,

partnerin

Company of California, 623 South

H.

Hope Street.

more

careful."

He

Daniel Reeves

with Morgan & Co.

(Special to The Financial Chronicle)

we

simply

(Special

.

Pacific Co. Adds

s

Boulevard.

with

&
Co; and Francis I., du Pont & Co*

(Special to The Financial Chronicle)

BEVERLY

obligation to

ex¬

out.

Stock

New

—

cut

it

Ford

the

or

each

into

Co.,

of

O.
BEVERLY
HILLS,
Calif.
-4
Watling, Charles A. Baggott has joined the
Building, staff of Shields & Cdmpany, 9478

money,^ iri the, added to the staff of Waddell &
anywhere -down
Reed, 8943 Wilshire Boulevard. •
in the Army and Navy,

—

the

you

govern¬

&

4

(Special to The Financial Chronicle)

Kurt

with

nowv

21

With Shields & Co.

.

: Waddell & Reed Adds

bureaucrat, the

handling

man

indi¬

things

Detroit

Mich.

is

members

money you give

a

or

Lerchen

spend. This is true of
individuals too." ' ~

or

thinning

and

politician

a

government

government

going

more

DETROIT,
Wheelock

more he will

club,

have to cut

you

The

any

church, business, family

Mr.

years

been

the Federal budget can and should
be run like a state budget, like

morale.

Watling, Lerchen

(Special to The-Financial Chronicle)

of

Federal"

detrimental

are

Joins

being

go along with government efficient and sound management.
policy and would feel right about One * extra, excess worker, one
on
Kansas the Korean war, but without that loafer
any
staff
destroys

Latshaw,

the

(1445)

passed away March 24.

Hentz

&

Co.; New York City,
*

X

with

the trading

department of

Inc.

Prior

Decade of Progress

Arthur

J.

Wm. J. McGovcrn

Warner & Co.,
he served as a

thereto

STANDARD

Lieutenant, J. G., in the U. S.
Navy Air Corps. He attended St.
Peter's
College in Jersey City,
N. J.

office will have direct

new

connections

with

the

Utah's Governor Hits

Many figures double in 1940-50period—result of major expansion program
for the Standard Oil

THE 1950 RESULTS

its subsidiaries gave

At Pressure

Gov.

J.

Bracken

Groups

Lee

also

sees

unhealthy

political situation in
high taxation and heavy national
debt.
Governor

Utah who

calling
sion
of

J.

Bracken

of

Lee

has refused to

sign his
budget this year and is
special legislative ses¬

a

this

cutting

Hall

for the purpose

summer

told

expenses,

audience

in

a

New

Town

York

on

March 28 that the Federal govern¬
ment had reached beyond the dan¬

point in taxation and in

ger

national

debt.

He

cited

the

as

its future

because

tional

debt

have

reached

taxes

are

and

the
the

of

the

that

fact

na¬

we

where
high that everybody

so

stage

is going out of his way to cheat in
his payments as a normal course.

Calling the past 20 years "the
greatest swindle in the history of
the

world," Gov. Lee depicted the

"sad

fact

of

government of

a

ganized minorities at the
of

the

great

program

held in check

were

ing, and transportation due to
the

consumer

est

reached

competition in

1948

a

more

new

facilities.

a

to

Distribution to

of

mass

SALES

IN

subject to considerable uncertainty owing

crease

of 117%

lower, this year's dollar figure

over

1940. This increase

was

EMPLOYEES

Although prices

year.

per

or

$6.72

AT THE

END OF

earnings and benefits

achieved through the

$123,581,477

1950 were

per

or

$8.09

share

per

higher than

were

stock, and

$9.16

or

were

year,

of

EXPENDITURES

$127,438,792

lower than for

were

gas

the

Pipeline traffic, crude and product
combined, made a new high of more

1949 for

than 129 billion barrel miles in 1950.

liquids for 1950 gained 9.9% over
a daily average of
214,050
barrels.
Military and civilian de¬
war

as

can

long

Standard built 537 miles of

be met short of all out

materials,

as

and incentives remain

lines,

new

no

individual owned

much

so

at refineries in

runs

gasoline output

1%.

12.7%

up

Dividends

1949 for

over

Product sales alone

rose

barrels,
a

new

{.

4

i-

■i

r

4

,

i

*

f

record.

a new

were

188,044,543

14.9%, and also reached

un

high.
■

'■

•

REFINERY RUNS:

60% gain

i

■

f

VOLUME OF PRODUCTS SOLD:

77% gain

in the decade, 1940-50

in the decade,

1940-50

THE STORY IN FIGURES

of Earnings Retained and Invested in the Business
for the years 1950

as

v

if

Total sales of crude and products for
the year 1950 were $1,268,243,419,

1950

sharply, and facilities to meet greater
defense demands are ready.

193% gain in the decade, 1940-50

1950

and 1949

1949

FINANCIAL

1950

1949

$1,302,990,269

$1,158,124,773
•;
12,158,388

1948

'

Total income

$1,318,183,136

$1,170,283,161

Net earnings

American

*

4% of the

as

equity of stockholders' ownership.

CONSOLIDATED STATEMENT OF INCOME AND EXPENSES

expense

much

so

t

December 31, 1950.

on

year. Again this
in the past, re-investment of profits has increased

as

1948. Aviation

pipe¬

about 25,600 wells.

new

,*»*»

paid in 1950 for the 57th consecutive

Crude oil

PIPELINE TRANSPORTATION:

140% gain in the decade, 1940-50

And Summary

Employee

before. Two

ever

cient form of

;

NET PRODUCTION:

or¬

96,086

were
462,073 barrels a day—8.3%
higher than the previous record of

Pipelines have proved a most effi¬
transportation.

manpower

adequate.

now serves

,

(

i

instituted in 1950.

No institutional stockholder owned

with $102,-

compares

share in 1949 and $140,079,286

Production of crude oil and natural

mands

largely to the

numbered 46,739.

1950

were

employee benefit plans

share in 1948.

CAPITAL

due

.

(after allowing for higher taxes). This
668,228

was

far greater investment in facilities for production, manufac¬

NUMBER OF STOCKHOLDERS was
FOR

were

>•»

were

larger volume of products sold.
NET EARNINGS

and materials.

manpower

at the end of 1950

ASSETS

$1,640,075,455, com¬
pared with $1,550,898,031 for 1949, and represented an in¬

compared to $1,125,-

411,841 in 1948, the highest previous
were

are

growing shortages of

turing, transportation, and marketing.

totaled $1,268,243,419,

1950

capital outlays for the last five years were
Estimated expenditures for 1951 are substan¬

TOTAL

decade. Consequently, though

product prices averaged slightly lower, annual earnings

1949. Total

tially higher but

record volume in the face of the keen¬

than

or

$892,636,617.

is paying off. The effects of rising costs
by greater efficiency in production, refin¬

un¬

healthy signs, the fact that every
U. S. family has a $7,000 mortgage
on

expansion

Company (Indiana) and
additional evidence that their post-war

well ahead of 1949.

state's

own

[INDIANA]

main

office of the firm in Kansas City.

v

i

and Subsidiaries

•

The

wire

OIL

A

123,581,477

102,668,228

140,079,286

$8.09

$6.72

$9.16

; 41,206,971

38,045,956

40,441,410

$1,245,786,091 "
'

citizens."
not

was

The

but

crats

said

governor

he

only talking about Demo¬
that

there

is

a
type of
Republican
and Democrat, who is not inter¬
ested
in
serving the people so

public

servant,

both

as
in getting aboard
the
"gravy train." He used the strong

Sales and operating revenues

Dividends, interest, and other income
Total income

"stealing from the people"
depicting the devaluation of
insurance
savings, old-age pen¬
sions and the like through those
years.
History shows, he stated,
disaster

time

resulted

every

.

.

.

Dividends paid per share.

expenses

other

-rutt

than/,

,

icoH 19ItL. mtTtoo■/<
ill

i

-

jQ48,661,531

r *

-1.

/IfJi

I

retirements and abandonments
Federal income and

excess

,

43,922,623

retained in the
JbuaiHessV............

O

Capital

54,129,000

in

J 949

collected

31,001,000

$

64,622,272

$

felt

strongly that

no

one

251,831,821

1,165,717,705

worth) at the year end

barrels.

33,891,115

1,083,343,199

1,018,721,446

fr

^

'•

f

$76.27

$70.88

6,803,285

5,521,793

78,128,370

.

Oil wells owned, net, at
the year end. .......

31,541,355

6,898,072

paid

Minority stockholders' interest in net
earnings of subsidiaries
,;....

$66.65

3,933,445

$1,194,601,659 ' $1,067,614,933
$

123,581,477

$

71,102,587
•

'

'

84,106,429

'■
i

8,724

Gas wells owned, net, at*
the year end........

i

8,440-;

945

168,656,482

8,241

807

150,048,716

738

•

MANUFACTURING

group, no
matter how
meritorious its request, should be
pressure

given special wage
erations

the

at

or

tax consid¬

expense

of

other

groups and the general public. In
the state of Utah, 90% of the legis¬
lation
—and

passed, mostly
he

believes

over

he

his veto

has

set

a

veto record out there—was for the

benefit of and through the efforts
Of organized minorities.
"There
is no lobby for the general pub¬

Dividends paid by

Crudeoilrunatrefincrics,
barrels.

102,668,228

,

:

..........

Crude running capacity,

Standard Oil Comjiany

at year

^Indiana)—Regular dividends paid wholly
^ in cash—$2 per share. ... .............
Extra dividends paid in capital stock of
Standard Oil Company (New Jersey)—

$

30,563,032

$

30,569,564

-

ket values

on

156,206,614

Balance of

earnings retained

$

41,206,971

at

a

low

leadership is
ebb, Gov. Lee said and

added: "If I
an

our

were a

Englishman; I

confidence

in

the

Frenchman

or

wouldn't

have

American

gov¬




ness

at end of year...................

.

465,275

$1,125,411,841

$1,205,957,775

*.....,

4,521

4,511

4,490

31,018

30,871

29,612

Pipelines owned, at the
year end, miles

7,476,392

.

$

Pipeline

38,045.956

traffic,

$

82,374,506

$

522,566,195

587,188,467

.

ft)

64,622,!272

669,562,973*

$

...

PEOPLE

*5

587,188,467

u

VS<V

sent Decree in Elkins Act suit.

-

t

.

87,483

96,808

97,073

46,736

48,692

year
...

96,086

year

end
.

97,589

*

end

Employees, at the

,

15,267
116,756
4:

:

(

♦Including $197,000,000 restricted by terms of debenture and bankloan agreements of subsidiary companies and about $28,800,000 of
earnings of pipeline subsidiaries segregated under provisions of Con¬

15,403

117,069

102,388

.

Tanker and barge traffic.
million barrel miles.4..!

Stockholders, at the
$

15,439
129,160

million

barrel miles,..

Earnings retained and invested in the busi¬

Confidence in

;

TRANSPORTATION

10,643,939

Earnings retained and invested in the busi¬
ness at beginning of year..............

V

,

.

4

lic," he reminded.

'

472,270

Retail outlets served, at
the year end

were

paid.,

.v

'

499,500

,/

Bulk plants operated, at
the year end.

equivalent to $1.1353 in 1950 and
$0.6865 in 1949 per share on Standard
Oil Company (Indiana) stock.
Total dividends

\

$1,268,243,419

j

Total sales in dollars.

Mar¬

dates of distribution

...

MARKETING

165,325 shares in 1950 and 127,249
average carrying value
—together with equalizing cash pay¬
lieu of fractional shares.

day.

•,

end, barrels
.........

per

shares in 1949 at
ments in

99,637,876

134,721,253

liquids, produced, net,

from customers

earnings.

82,374,506

127,438,792

'■

he

December

PRODUCTION

.

that

on

Crude oil and natural gas

agencies)

Total deductions

$

expenditures...

Book value per share, at
the year end

36,600,611

$183,196,467 in 1950 and $168,022,-

Interest

Net

$2,878*

the market values

*"

Other taxes (exclusive of taxes amounting

for government

as

''^arffiH&s

Net

33,999,917

profits taxes..

j*Inpluding $1,135, $0,687, and $0,753

the dividends in capital stock of Standard Oil Company (New Jersey).

j
■fiW

Depletion, amortization of drilling
and development costs, and Iohs on

to

$2,687*

flL.1950, December 12, 1949, and September 10, 1948, respectively, of

t*'

ill

*,•'

f

<-^l.oiufesi1** $ 9l3;kf2)014

those shown below

Depreciation, depletion, and amortization
of properties—
Depreciation.

672

$3,135*

-

'4.

'1

ating and general

country has followed the
economic path we are following

today
the "government-owesme-a-living" philosophy permeat¬
ing the people and their leaders...
\
Every demand made; upon a
legislature has merits, he said, but

Dividends paid

$1,170,283,161
r»

a

has

,

$1,318,183,136

Materials used, salaries and wages, oper»v,

in

that

15,192,867

DEDUCT:

much

term

■r

Net earnings per share..

46,739

Conies of the 1950 Annual Report available
lasts.

Write Standard Oil

on

request as long as the supply

Company, 910 S.Michigan Ave.,Chicago80, III.

22

The Commercial and Financial Chronicle

(1446)

Reviewing the high wage struc¬

;;

ture, what do

Flight From Inflation
By WALTER

In

the econ¬
omy to reach a status that would
justify higher wages, union work¬
ers, aided and abetted by ballotbox-conscious politicians,
and a
too ambitious standard of living

SONNEBERG

discussing inflationary trends and developments, along with

may

be taken

out

rainbow

is

the

not

necessary.

material

con¬

ditions of the time that darkens

appearance

the hues of the future, but man's

nation

self-satisfaction in the midst of
the cataclysm he provokes by

reality.

of
•

John

the

lent

healthy rejuve¬

a

without

As

that

stimulation

tificial

furnishing

the
•

.

Passos

Dos

-

-

it

puts

his

("The Prospect Before Us''): "Im¬

his

mense

aimless monkey-cleverness,
inability to foresee the ef¬
fects of the tricks he plays."
Sir

'

Osbert Sitwell—"Noble

Es¬

sences."

Millions

of

words

have

been

written about the wonders of

industrial

our

"know-how," but there

have

armaments

become

the

flywheel of modern govern¬
mental economy." New Deal, and
Fair
Deal
also
gave
with the

the

and

forces

fell

natural

ex¬

down

on

the

Wages, under the false impetus,
were r jacked
up
above justified
economic levels, and were accom¬

/

job of finding

1

b

a

for

e

of peo-

and

reached

reality

the stars for

among

Canadian

This figure is 66%

charges

before

breakfastto

have youwatered .the,
"Yes, sir."
"And sanded

charge sticks when

the

record."

yon

The

review the

we

series of chimeras pursued in the
absence of right directives.

flight

get

anywhere in
inflation unless

from

know the

score?

V

our
we
*

t

Without the right vehicle and
better

of

sense

writers

see

direction

a

some

entering "a transi¬

us

tional period of disastrous confu¬

sion."—"We
the

right

unless

shall

answers

ask

we

receive

never

to

questions

our

right questions."

The terms of the confusion

*

mean

controls, increased govern¬

ment expenses,
tion
and
the

rum?"

sugar?"

dusted

public dissatisfac¬

multiplication of
problems when atomic energy is
released for industry before we

have learned the proper use of in¬
ventions already available.

Leadership, out of touch with
fundamentals, offers a variety of

the

his

clerk:

f'And-

sir."

"Yes,

prove

brekenvjreeds."/»Traditional

aies

not seem/to

do

"A

a

Meanwhile

wave

generated

Wars

and

vated

two

the

>

by

New

prosperity
two

World

Deals

moti¬

a

pyramiding of wages and
prices reaching for the "pie in the
sky."
It

was

this

fun as

long

wage-price

as

spree,

it lasted,
but now

that the piper must be
paid, comes
the day-after
headache.
Curing
this headache,
going under the
of

name

certed

inflation, calls for

action

nomic front.

all

Just

along

(There

in

probably billions of
of goods oil store
Belated
discovery that produc¬ shelves and in storage.) A pushing
of the system too fast, too far, be¬
tions do not finance themselves in

are

united

factors

front

figuring

against

the

in

the

enemy,

inflation.

Inflation is not
enon,
course

you

It is
of

put

the

the

new

phenom¬

culmination

taking
in,

a

more

out

of

a

than

performance

of

followed

by

government

a

elected

to angel performance de¬
ficiencies—a task for which gov¬

two Wars and two Deais, gave

flation its final
In

view

fling.'-

which

of

in¬

combination

is
neither
organiza¬ of circumstances the flight from
tionally equipped nor doctrinally inflation needs to be taken out of
adapted. The drift put both gov¬ the hands of unbridled spenders
ernment

ernment

and

industry

at

dis¬

a

advantage.
The

and

unleashed

and

present

emergency caught
their guards down.

rainbow

winged with

able set of

a




:

utilities, which have been
running high right along, does not
gas

sudden spurt of exT
in manufacturing lines.
It continues a program which will

represent

pansion,

a

as

top $3 billion for the third succes¬
sive

year

spending
industry.

the

—

Expansion,

capital
single

largest
of

program

any

Plan

the survey, gets

says

to

Increase

Capacity in 1951

Increase

Increase

1950-1951

Textiles-:

Petroleum refining.

^//V
„/■

,

'■

/

V

.All

7
9

.

Capacity

75% Above 1939

-

'

/

38.

manufacturing
manufacturing

Manufacturing Industries Have Expanded
r

14

Other

10

—_

machinery

Transportation equipm't

.

3

10

—

4%

Electrical

7

6

—_

1950-1951

«.

11%
17

_

Food

Index of Physical Capacity (1939=100)———

*'

'■

Jan.,

Dec.,

Dec.,

Dec.,

11)46

11)48

1641)

11)50

172

250

264

293

325

Autos

104

130

140

153

179

Food

117

135

138

143

152

123

160

171

154

200

216

178
236 V

260

Steel

112

115

121

126

139

Electrical machinery
Transportation equipm't__

175

280

301

325

371

/

243

250

265

288

397

•'

Other

■

109

120

125

131

'156

164

133
175

142
191

,,

with

been taken from the

situation.
could

do

taking
where

floods

way.)

dubious

after

■■

•

Putting

a

brake

on

(3-17-51—Labor unions

are protesting
cost-of-living index.
"They say that it will deprive workers of
1 to 2 percent of what is due them.") !
new

B.

S.

L.

head¬
■; '

.

prices,

V

Planned for

1

11)51

level

wage

A

Englander & Go. Is

prematurely high
a
weakness' for

outmoded formulas make the in¬

./•'/■, ;V

$1,350

All

gas

.

bious

standard

of

living—one for

,

42

940

+ 48
+134.'

1,345
680

+

46

180
130
2,450
8,065

+

74

3,200

315
<
490
4,165
13,350
1,705
3,490

'

-

and

*

way.

Percent

of

$14,840

Money

Englander & Co. formerly
as

Expenditures

to

Be

and retained

profits

loans

teed loans

Other

0%

6%

0

0

1

Food

83

0

16

quire looking into.

turned after

97

Dos

labor

Passoss noted

theory

of

that:

value

"The

went

operations and try to

sign

rewards

really due."

where

rewards

as¬

are

Due

a

has

just

re¬

long illness.

to

new

present conditions,
teletypes are obtainable

New

York

Petroleum
no

in

or govern-

ment guaran-

0%

0

and

or

(

Government

3%

99

1909

j" 91%

,

45

+

other debt

Auto

originally started in Wall

12

+57

stock

Chemicals

in

+

bank
Sale of

by Mr. Englander from 1934 until
Street

'9

From:

1942.

—

45

$21,544

which sound economic foundations
have
not-been established
re¬

He

+
+

1,100'

Financed

Depreciation
was

+70
+ 66

•

1,900

~

Bonds,

sole proprietorship

a

+277

Comes From

i

conducted

T

700,

industry grand total
The

v'-.

com¬

—„

flation

strictions have only limited appli¬
cation.
A
questionable
wage
structure accompanied by a du¬

utilities

Where

problem what it is today. securities business. The new firm
Balanced budgets and credit re¬ will maintain offices at 115 Broad¬

+

1,175

and

transportation

establishment of the firm of Eng¬
lander & Co., to conduct a general

■

34

995

.

1,700

r

Mining

announce

52

575
j

manufacturing
manufacturing

Augusta
the .re-

Englander

-j,

465

_

machinery
Transportation equipment

\1

59%

.+

945

700

—

munications
Samuel Englander and

F.

\

-f-

635

refining

Electrical

Other

+

/

1,330

705

Textiles

Electric

/

% Change
'./■

$2,140

,

875

J

______

—

Petroleum

f
"

Expenditures

—(Millions of .Dollars)—

Chemicals
Food

!

1951

1951 Planned

Expenditures

-;""v

Railroads

Re-established in NY

even

and

Major Industries Plan Expenditures for
1050

Autos

183

"

■■■

How

Other

raw

•

:

'

Total

mateiial levels, smacks of
stolen horse and the locked

______

manufacturing
manufacturing_______

Steel—
1

the

containment

they gain

refining

Machinery

they

the

floods

for

stream

at

of

watershed,
form, than by
expensive dykes * down

the

building
of

found

effective job by

more

All

chasers,

'

/

,

Petroleum

principles designed for

flood-control ;{E. G. Noufse.]

Engineers
a

care

Chemicals

depend¬

more

stability, and powered! by policies
They operated under a double giving realistic approaches, and
drawback, in attempted stoppage unity of purpose the right of way.

officials

sky
fat-' high with the first
assembly line."
tened on over-exploitation of the
Production plant 'should be ana¬
country's
resources;
and
other lyzed: "figure the social,
value of
parasitic elements who thrived on various
milking the public cow. Followed
period of pump-priming and ar¬

'

Machinery

volume, even with ex¬ fore it had acquired the necessary
pensive, high-pressure campaigns, status, furthered by spending for

earlier "Titans of finance" who

a

Their

/

are

worth

sufficient

eco¬

nomic field,
production,, saving,
spending, money-supply, and
wage-price-profit
relations
and

Continued Expansion

„

to

.

the

the

drive

industry's

that

The 9% increase in electric and

Manufacturing Industries

pepper?"

dollars

barndoor.

as

How

job.

be necessary.""'+

may

questionable subter¬

con¬

in war, army,
navy and air-force are called upon
for cooperative attack. In the eco¬

debt

j

forecast of what 1951 capital in¬
will be, but rather in¬

vestment

reme-T

analysis

half-measure panaceas and policy
contradictions. It encourages wage" of inflation at the wrong end— Dedicated to the proposition that
boosts and at the same time de¬ after wages and prices had r^athed^fsbcial sectwity, must be created;'
mands restraints on money sup¬ a high plateau. (Cue might have it Cannot be merely conferred."

ply!

an

re¬

meet mobilization needs for metal.

to be

the

do

fundamental

more

fuges and leads into blind alleys.

us

1950,

over

flecting

invested in new plants
equipment during 1950.
figures do not constitute

These

Inflation
also
took
on* new
"Yes/ sir."
coffee?"; "Yes, aspects. On the modern scene it
sir " "Then come up to prayers." reflects
premature extensions of
In a similar way failure to deal industrial processes rather than
honestly with the situation in¬ pressure of money on supplies.
volves

175%

of

increase

was

1950 invest¬

Nonferrous metals show

actually

"And chicoried the

was

drifting further into bureaucracy,
more

largely the aircraft industry-+represents the greatest single increase,

standard, trade-unionists naively dustry's plans to invest in new
expect the economy to rise to the plants and equipment as reported

downstairs budget balance "can

called

deacon-grocer

"John/

we

icals, steel and general machinery.,
Transportation
equipment-^

time.

than

more

elec¬

machinery industries, chem¬

trical

and

■,;;.

with having; "tbe highest ftiyth
consumption

us

Can r

craft industry—the auto and

almost four times its

year's

planned

are

preparing to meet
production

defense

of

kept

; was

ground

A

answer.

an

Sonneberg*

brunt

ment.

in the .back¬ supply and demand some classical
/.;'; ■ <!;.... .;: -■ traditions were casualties of the
cally-minded
businessmen
mid7
There's Barnum's story about a assembly-line and the corporation.
wifed a problem in distribution
credit
management
and
grocer; who was a deacon.
The Both
Walter

Romanti¬

ple.

industries

demands, such as transportation
equipment—dominated by the air¬

routines

by

increases

Greatest

the

expenditures

one

power-

a

capacity

for

,

in

their

74% greater
than in
1939, and the country's
telephones have increased 106%i

,

panied

nels, of mak¬
ing them suf¬
ficiently a vailmasses

Electric utilities have

producing

structure of

chan¬

normal

this

of

satisfaction

for

vance

tripled

manufacturing
industries
plan to spend $13.3 billion, there¬
by setting an all-time record for

gram,

indus¬

equipment

almost

have

.

dex-makers recently

year,

capacities, and the general ma¬
chinery industry has more than
doubled its facilities in this period.

occasion of its own accord. What to the McGraw-Hill Department
thaU put tilechance, with a market economy of Economics, Dexter Keezer, di¬
industry on what the
based on an "illusory" prosperity rector, emphasizes;
banker calls "stilts." -The whole
and a growing debt, handicapped
Greatly Increased Capacity
complexion of industrial life be¬
by
frozen
maladjustments and
came
an artificial
buildup of at¬
Since 1939, the/electrical ma¬
misfit formulas?
tractively applied financial salves
chinery industry has more than
Along with the so-called law of tripled its facilities. Chemical and
and political cosmetics. The drab

outlets for the

goods through

7% since last

75% since 1939.
tries

;

we

and

transportation

proposed
is little consideration of the knowchange
of goods ■ and
services.
adding beer and soft drinks—and
what
side
of
:
Absence of a market in which
the use of political leverage in
the
picture.
workers could produce things at
boosting wages to. reach such a
Having devel-,
a price that the masses could buy
standard, weakens the worker's
oped t e c hin sufficient quantities out of their case and lessens
security.1
niques for the
earnings brought about political
:
Drawing on the economy in ad¬
mass
flow of
interventions.
"
V
goods

Business has raised its capacity

reveals.

includes a full schedule
Industry will spend a total of
house, television, auto and other $21.5 billion in 1951, 45% more
expensive
items — pushed
the than was invested during 1950, if
whole program before the foun¬ materials,
equipment and man¬
dations were laid.
power make it possible, according
to the annual capital expenditures
Cost-of-living figures are full
of hidden jokers. With some folks survey of the McGraw-Hill Pub¬
lishing Company's Department of
autos
come
ahead
of
bathtubs,
Economics.
with
others
television
may
be
The survey foresees a continu¬
given
preference
over
running
ing
wave
of
expansion,
with
water,
AFL
investigators can¬
American business raising its ca¬
vassed
an
industrial
field
and
pacity another 9% this year.
It
found even with high wages threeraised capacity 7% last year, and
quarters of workingmen's families
since 1939, in meeting the produc¬
had to cut one living necessity.
tion-requirements
of
war
and
Some bought less meat and eggs,
but almost everybody had an auto. peace, has raised its capacity 75%.
To carry through their 1951 pro¬

"phony" money. This artificialityis something quite different from
The combination of a fallacious
and alien to the free play of mar¬
standard of living—to which in¬
ket

plants and equipment may reach $21
over last year, McGraw-Hill survey

new

increase of 45%

an

of

chasers, so that a more dependable set of principles
designed for stability might be followed.

"It

1951 investments in

billion,

—which

Says flight from inflation needs to
of the hands of unbridled spenders and unleashed

analysis

Thursday, April 5, 1951

.

Industry Planning Enormous Expenditures

find?

Instead of waiting for

currently imposed curbs, Mr. Sonneberg maintains traditional
remedies do not seem to do the job and a more fundamental

be

we

.

.

0.1

85

0
2

1
7

0
1

2

Machinery
Steel—

91

0

8

0

1

refining

5

Textiles

88

0

12

0

0

fore has made arrangements with
Farrell Securities Co. to use the

Electrical

machinery
Transportation equipm't

97

49

teletype facilities of the Farrell
organization. The teletype number

Other manufacturing
All manufacturing

2
0
20
9

0
51
0

1
0
1

86

0
0
0
1

is N. Y. 1-2577.

Railroads

47

-0

46

0

j

City.

The firm there¬

—

__

79

?

.

t

2
7

.

Volume .173

Number 5003

The Commercial and Financial Chronicle

...

Sheridan Bogan Paul &

top priority among claims on in¬
dustry's investment' dollar,
Lagt

Educational Committee: Clifton
Co.; John
C.; Graham, A. C. Allyn & Co.; Bk. Bunting, First Boston
Corp.;
Robert L. Gray, Jr., Land Title Paul
Denckla, Stone & Webster
Bank & Trust Co.j Arthur HorSecurities; J.
Brooks
Diver,
ton,
Penington, Colket & Co.; Mackey, Dunn & Co., Inc.; Her¬
William A. Lacock, E. W. Clark bert
F.
Gretz,
Fidelity - Philq.
&
Cq.; Edwin.. P;;r McCausland, Trust Co.; Robert E.
Daffron, Jr.,
Eastman, Dillon & Co.; James J. Harrison & Co., Chairman.
Mickley,
Corn
Exchange ■ Natl.
Committee':
H.
Membership
Bank & Trust; Harry B. Snyder, Townsend
Bongardt, Tradesmen's
Yarnall &
Co.; Harold. J. Wil¬ Natl. Bank & Tryst Co.; Russell
liams, Boenning & Co.; Willard M. Ergood-, Jr., Stroud & Co.;'
M. Wright, Jr., Butcher & Sher- Henry L.
Hood, Fidelity-Mutual
rerd; John D Foster, Chairman, Life Ins. Co.; Osborne R. Roberts,
DeHaven & Townsend, Crouter & Schmidt, Poole &
Co.; Henry W.
Bodine.
"
Wessels,
Butcher
&
Sherrerd;
Directory Committee:
George Wnp A. Lacock, Chairman, E. W.
T. Francis, Jr., Swain & Co., Inc.; Clark & Co.
Theodore M. Hughes, Standard &
Public
Relations, Committee:

manufacturers spent only 43

year,

cepts-of

each

investment

to,

enlarge their
largest share, 57

dollar

capacity.

The

cents, went to
replace and modernize existing fa¬
cilities.

This year, the figures are

turned around—58 cents

going for

expansion.
Great bulk of the

—98%

new

facilities

in manufacturing—will be

financed

industries'

from,

own

funds.

And, as usual in postwar
years,
the biggest share of the
money—86% for manufacturers—
will come from profits, and re¬

.

serves.

Aircraft

,

dustry

is

the

covered

only major in¬
by
the
survey

Poor's

share

of

its

facilities

government * or

through

ne\y-

govern¬

Corp.;

Smith,

which plans to finance any appre¬

ciable

(1447)

Barney

E.

ment-guaranteed loans.

Bert

T.

&• Co.;

Lynch,

Groff, Chairman, Brown Bros.
.

Co.,; Inc.;

Paul

W.

E. ,W.

,,;

&

R.

C.

&

Miller

Co.;

R.

H.

Appointed Directors

Clifton

E.

&

Cqrporation,

Committee: S. Stew¬
Jr., Eastman, Dillon
Cd.; Edwin J. Hicks, Beneficial
Saving Fund Society; DeRong H.
Monahan, Provident Mutual, Life

Bigelow

Alcorn,

Co.;

Wm.

H.

directors

as

Mr, Case is

i When

McGraw-Hill

P.

Townsend,
E. W. .Clark & Co.; John H. Web¬
ster, III, Provident Trust Co.;
Newlin
F.
Davis,
Jr.,
Kidder,
Peabody. & Co., Chairman.

corporation counsel for Duplan.

With Waddell & Reed

:

With, Consolidated Invests.

(Special to The Financial Chrqnicle)

SAN

; TAMPA, Fla.—John J. Lucas is
affiliated

now

with

Waddell

ris R.

&

to

Reed, Inc.

the

FRANCISCO, Calif .—Mor¬
Rosenman
staff

has been

of,

Two

interim

sur-,

during 1950, made by "Busi¬
Week" in cooperation with

veys
ness

the Economics

Department, show¬

that the upward turn came in

ed
the

spring and then

after

Korea,

during the

,

sharply

rose

Actual

investment.

.

shown by this
latest survey, was about $15 billion, i
•5. The aircraft ipdustry is expand¬
year,

as

ing its facilities more than 40%.
Ifere, capacity—difficult to define
and

•

measure
means \something .
different than it did in World War
;II,
One company, .for. example,;
77""maf still' Jmve<?th&r62paei'ty to pro- " 'rf
-r-

.

;

:duce^:ip,000 World
planes

ut

a

War

n~type

it..majr.-peed

to

spend

millioi^^'^e?^i;facilities:
befor%it:'fcaii"f!tujn out 5,000 jet-V^^:^
propelled -fighters today.

larger,
require
The

equipment, and
new buildings,

electrical

chinery
become
and

and

industries

difficulties.

Their

heavier,

;

general masimilar-

;

have

products

'

in

.

^

:

have -\

higher-powered,

with much more precise con-

trol equipment.

>,"

Today's ;
planes4

new

many cases,
t'

complicated

more

c

The chemical in-f

dustry has.seen its products multiply, adding to the difficulties of
measuring capacity.

1
s. •

!

.

v?

Building Boom

*

The boom in industrial
which

building

v

develppdd; in, 1950 promises

to

,

continue:^i;^high level,

ac¬

cording to the Purvey; In the man-,
iufacturing^ industries; f'. at ' vleast,

.business plans to spend~79%
construction

on

1950.

in

1951

more

than

7

in

in

total

that

a

expenditures,

:

.

The

rise here
is slightly
larger, than the 66% rise indicated

■

;

■

;

suggesting

larger share of the invest¬

ment dollar will
go

Again,

construction

into buildings.
expenditures

under today's

ew

plans will rise most
sharply in the industries expand¬
ing most rapidly.
Great

as

is

of handling Long Distance

way

the

upswing in in¬
vestment plans, businessmen ex¬
pect defense needs will force still i
greater expenditures. The survey ;
was made in
January, soon after \
the Chinese armies entered Korea
while the Administration was

11
L

•

i«.

J

1J

i

t

'

■'

►

i'

■

^

i ■ f!i

•* :

Operator Toll Dialing)
.-m

1

od. 10;vitr>

fi

♦

'

'•

f'

'

- ■

fci&fm

-s<

'

big help in these

proves a

q. n;ri

r

*•

-98busy days of national preparedness

'

j

and

;

presenting

its defense budget for f
fiscal
1952.
At that time, more
than half the business leaders sur¬
veyed expected additional defense

orders

would

force

them

to

Long Distance lines

raise :

their plans for
new
plants
equipment later in the year.

clays. There

;

V

and

More

calls than

a year ago.

A

Phila. Sees. Ass'n
Pa.—Frank-f
Ford, Jr., E. W. Clark &
Co., President of the Philadelphia
Securities Association,
has an¬
t h

Association
as

e

'

appointment

Committees

for

'

-

You

of

•

1951
:

'

a

remarkable

new

keys and

your

telephone

you want

call

She quickly

goes

in

a

tele¬

formerly

With

presses

num¬

several

straight through to the.

especially

calls

on




ANOTHER
now

STEP

FORWARD... More and

dial Toll calls direct

to

more

nearby places the

telephone
same

way

calls

the lines, it's

are

It is

-

and

now

available and in

now

just

being handled in this

one

new

improvement of telephone service
to

a

so

way.

are now

the Nation in these days

preparedness.

in

in

of many ways in which the growth

proving of extra value

users

use

a

was

places. About one-third of Long Distance

Barndt,

Baker, Weeks & Harden; Francis
M.
Brooke, Jr., Brooke & Co.;
Harold F. Carter, Hornblower &
Weeks;
Llewellyn
W.
Fisher,

on

relayed through other cities.

many more

developed and is
many

of

distant city.

so

were

—

mighty good thing that Operator Toll Dialing

calls

give the Long Distance operator the

ber in the usual way.

follows:

'Arrangements
Committee:
Newton J. Aspden,
Aspden, Rob¬
inson & Co.; Charles L.

—

phone development.

.

L

nounced

big help in keeping these calls moving is

Operator Toll Dialing

•PHILADELPHIA,

lin

It makes for faster service

that

from the Nation's industries and Armed

are

Forces, hurrying the country's most important job.

Committees Named by

I.-

really humming these

are

are many more

growing number of metropolitan

areas can

they diul Local calls... BELL TELEPHONE SYSTEM

In¬

Russ Building.

vestments, Inc.,

in Korea added

war

impetus.

added

Consolidated

of

industry planned to
spend only $12.4 billion, but the
new

resigned.

senior partner of

a

survey,

outbreak

replace

to

Jordan

its*

made

the

and Harrison,
Inc., management engineers. Mr.
Kaelin
is. a
partner of Baker,
Weeks and Harden, stock brokers.
Mr. Bigelow is senior partner in
the law firm of Gould & Wilkie,
Steyenson,

Korea AddpcJ Impetus

1950

of the

announced

has

three directors who have

&

Ins.

Chairman

Geier,

appointment of Ralph E. Case,
William R. Kaelin and Mason H.

Speakers

ard

C.

board of directors of The Duplan

mam

Bodine,

Drexel & Co.; R. Cqnover Miller,

Mosley,

Stroud
&
Co.,
Neff, Schmidt,
Co.; Howard York, III,
Doremusu & Co.;- Russell M. Er¬
good, Jr., Stroud & Co., ChairInc.;

Poole

Sidney S. Blake, H. M. Byllesby
&

Raymond

Harriman & Co.

Victor

23

tawi^w+^j^

24

m

(1448)

The Commercial and Financial Chronicle

Our

Reporter

======

President, The Equitable Life Assurance Society of the U. S.

No

this

by

could

be housewife

newspapers to

to

keep

ln

the
it.

this

It

our

detriments
of

money

*

the

which

our

will

serve

foundation
even

in
Parkinson

I.

supply consists principally of bank deposits
and paper currency in circulation,
The total money supply on Dec.
31, 1950, as shown in the last issue
Of the Federal Reserve Bulletin,
reached the new high mark in our
history of $184 billions. The similar figure at the end of 1949 was
.

.

.

$177 billions.^ Even that

was

an

Excessive

and

its

supply,

money

increase during 1950 by seven additional billions greatly contributed

rise

the

to

in

prices

and

during that year.

wages

Reserve

bonds

short

have a large
outstanding money supply without
spectacular rises in prices if the

Which

not

are

services

or

immediately

essen-

tial to them.

cautious

However, when this
holding of liquid funds

is for any reason replaced by acfive spending, we have a turn-

in

the money supply which,

of

OVer

the

absence

of

extraordinary
production, is bound

Increases in

to produce increases in prices and

$50

billions

government

of

paper

which matures during this calendar year.
Recently the Treasury
has

taken steps in this direction,
modifying its policy with respect
to the pegged bond
market, and
with the offer of 2%% bonds removing to a degree the pressure

of sales on the peg.
However, the
eventual goal of a full removal of
the peg and a widely attractive

What

did

we

was

to

abandon caution in the acquisition
of things, and because of the fear
of

higher prices of

the

future

make

we

used

purchases

needs.

This

ran

our

in

items in

money

advance

to

3%

bond

still

is

far

being attained. Accordingly,
inflationary pressure that has
building for more than 10

through the whole

business structure and

equal¬

was

ly true of the government.

More¬

toward the end of the year,
the fear of higher prices and scar¬
over,

cities threatened further

tion of the
dollar

drove many

people to

either

technical

Nevertheless,

in-

or

the

core

of

the whole matter could
and
should be made clear to the aver-

citizen.

money

all

That

supply

dollars

—

available

is

core

the

the

number
the

to

of

people,

that prices have risen

see

and that the cost of

living is

soar-

If this

duction

due t

werc

lack of

to

or

increase in the number of
dollars,
decreases
the
purchasing
value of each. That is inflation of

which

prices

due

money

supply,

Clearly

The

was

increase

supply which took
place durmg the year !950 simpiy
fed

money

the flames ol inflation
by inthe ■ amount of money

creasing

which
ed

to

tial

available

was

buying

or

for

into

more

or

the

supply and the
unfortunate results to
everyone of

continually increasing it.

not

It is always

gram.

to

have

will

substan-

us

think

matters

within the

understanding
ordinary citizen.

That is far from true.

The

aver¬

age
citizen
is rapidly
learning
from experinece that
every dollar

valuetohlm1b^theprocess ot in!
money supply or, as it

has sometimes been
described, by

adulterating
statement

the
by

dollar.
Mr.

to

be

whether it

a

the

past, for loans, from using it

will

ciation
at

the

for

Ont.,

Canada —A

Toronto

members

Investment Dealers'
Canada

of

King

Wednesday
which the
lU

the

tt

is

to

Edward

Asso-

be

held

Hotel

on

evening, May 9, at
guest speaker is to be

t

x

-r.

n* Lester
Pearson, Secretary of State for External Affairs,

Every

Parkinson

John White Partner in

Hopkins, Harbach & Go.
LOS

M.

White




has

Partnership
&

this

answer

been

admitted

to

Hopkins, Harbaeh

A

poses.

to

same

put to

point

lesser

use

or

firm

for

some

been

time

in

dig-

of the sales and Philippine

departments.

-

.

..

as

freely in the future.

Time

loss,
the

in long governments, and about the
shorts, makes those that would like to
more

than

once

before

now

they

Treasuryx issues in order to get funds for other

loans.

\y

'

point where the sale of Treasury obligations at a loss is
beginning to hurt is already at hand, but there may have to be
further adjustment because in our way of
doing things we are

some

not

satisfied unless

we

to extremes. Therefore, while the at¬
mosphere is decidedly on the blue side, it is not so black that it is
not possible to find rays of
light here and there. Despite some
further, unsettlement, which is characteristic of such periods, the
go

Kenneth A. ElHs

Henry E. Dahlberg

PHOENIX, Ariz.—At a meeting
March 31, 1951 at the Kiva

held

Club, in the Westward Ho Hotel,
security dealers of Arizona

the

consisting

A committee

Chairman

of

William

Refsnes,

Kenneth

Joseph

Kidd,
Ellis

Henry

and

sented

Securities

the Arizona

organized

Dealers Association.

Dahlberg,

pre¬

set of by-laws to the new

a

club members which were imme¬

diately adopted.
The

following
officers
were
elected to serve ill

unanimously
1951:

Joseph

Refsnes

E.

of

Refsnes,

Ely, Beck & Co., President; Wil¬
liam

Kidd

E.

of

E.

F.

Hutton

&

Co., Vice-President; Kirk C. Dun¬
bar of William R. Staats

retary

Treasurer;

and

Co., Sec¬
Henry E.

Dahlberg of Henry Dahlberg &
Co., Tucson; and Kenneth A. Ellis
of

Ellis

&

Yarrow

elected

were

directors.'
The purpose of

curities

Dealers

promote

The

the

the

securities

the Arizona Se¬
Association

is

to

general welfare of
business, establish

and maintain standards of ethical

conduct
and

of the securities

business

further the practical ben¬

to

efits to

be

derived from

personal

acquaintance of its members.
The

new

organization voted to

shrewdest followers of the money markets are still
sticking to the
opinion that the 98 l/z to 97 V2 level will be the bottoming-out area
for the longest maturities of the marketable
Treasury obligations.
This may be taking something for granted because

may never

j
Issues Under Pressure

The bank issues, both the taxables and the
have been-under moderate
pressure from the

U. S. TREASURY

partially-exempts,

STATE

standpoint of some¬
offerings, reluctance of bidders to stick their necks
out, and the usual quoting
down, which is quite prevalent in an
uncertain market like this one.
Nevertheless, there has been and
still is more than a passing amount of scale

what increased

and

buying, which will

MUNICIPAL

eventually have

a cushioning effect upon the market for
these
Funds with which to acquire the eligibles have not been
plentiful and those which have been available have been going

securities.
too

SECURITIES

mainly into the near-term end of the list because of the desire to
get into the issues that have the greatest liquidity and the mini¬
mum amount of risk.
The middle and longer bank
obligations, it
is believed in some quarters, will have to have some further
ad¬
justments unless the whole tone of the market is changed. The

shaky position of the municipal market is having

effect upon the

attractive

partially-exempts.

yields, after taxes, that

taxable governments, are likewise

distant

more

Switches
sizable
down

the

and

swops,

volume among

quite

a

2%s.

are

obtainable

in

the

an

time the
shorter

/

,

which have been in evidence in fairly

the restricted issues,

seem

Aubrey G. Lanston

to have slowed
at present

is

8c Co.

on
INCORPORATED

Secretary of the Treasury Snyder announced

than $11 billion

in

same

detracting purchasers from the

bit, because most of the attention

exchange offer.
more

However, at the

partially-exempts.

had been turned

the

in

credit think

reserve

take losses in the

that

with

so

ones

Exchange.

has

be that

t

one. •

members of the, Los Angeles Stock

Mr.- White

may

credit, is
purely a matter of conjecture, because it is nearly always impos¬
sible to pick limits as to where prices will
go, whether on the up
side or the down side, due to the immeasurable
psychological fac¬
tor. Nonetheless, the recession in quotations so far has been sizable

Calif.—John

Co., 609 South Grand Avenue,

twbu.^"Tth°,c2ti«.«'J'rJSTsySi: charge
Bnfhtwaters, n. Y.

e*te,

ANGELES,

It

The extent to which quotations of government
obligations will
have to recede, in order to curtail the use of reserve

Bank

Hold Dinner
the

about the easy or the hard way.

comes

get that low.

Toronto Dealers toTORONTO,

satisfactory to do things in this fashion
resort to involuntary measures.
Nevertheless,
lessening of the accessibility of reserve credit,
more

the unpegging of prices of government obligations will be suffi¬
cient to keep those that have made great use of reserve credit in

uncertain and

interest of the

flating the

limiting of reserve credit through the unpegging of
prices of Treasuries naturally comes the question as to how far

they

f

things.

It may be that some of
these are very technical
arid

advance

which the people want-

convert

duty

state of the money

0f

falling.

the

the

keep

dinner

the

is

of

newspapers of the country to
the
people informed about

,

in

it

inflation

the

...

cbnstantly

to

of

to money the value of which

.

With the

enough to retard to some extent the liquidation of Treasury obliga¬
tions in order to get funds that have been
employed for other pur¬

ing.

exchange their money for things,
not because they needed or ex¬
pected to need the things, but because they did not want to hold on
,

is likely to be consider¬

Tightening of Reserve Credit

deprecia¬

purchasing value of the

and

Refsnes

(both before and after taxes) between various
being watched very closely and it is indicated that when

are

adjustment in the government market carries on, because
the effects of the monetary authorities' action in
making reserve
credit more difficult to obtain are still in the earlier stages.
The
new
policy of making access to Central Bank credit more risky
and costly is the focal point of the new program. It is not the in¬
crease in interest rates that is the
important factor, but the stop¬
ping of the "engine of inflation," and this will be done, at least
in some measure, by making
accessibility and availability of re¬
serve credit more costly and risky.
Higher interest rates will not
accomplish this, but the unpegging of government bond prices
should help to bring this about, together with more restrictive
credit measures, whether voluntary or
involuntary.

there

Certainly these matters are little
by the general public,
Indeed, the discussion of them is

We

E.

The

than

is only slightly abated.

understood

age

Joseph

Yield spreads
issues

the market shows signs of settling, there
able switching going on.

results of the recently inaugurated voluntary credit limiting pro¬

term

been

of

not limited to in¬

was

dividuals; it

scarce

1967/72s for the

very

the

long

«

to the future.

been

from

extraordinary de\
mand for things, that demand
During 1950, we in this country would explain the rise in
prices,
did not exactly abandon caution but
today the rise in prices is due
in favor of optimism with respect in
large part to the uncontrolled

^5eS*

have

owners

the government bond market will have to adjust its
position before
the purposes of the monetary authorities are
accomplished. The
extent of the adjustment will depend in no small
way upon the

people
are
cautious about
ex- too often
changing their present liquid accurate.
fUnds for commodities

the

term

years

Of course, we may

December

new 2%s by institu¬
good, there has been nevertheless
quite a bit of liquidation in these bonds by those that are not in a
position to take advantage of the conversion offer. Also, the turn¬
ing in of the longest tap 2V2S has brought some selling into the
other ineligible obligations.

tional

have

term
T.

money

of the June and

our

up

pegging of the
government bond market, and sec¬
ond,
to
refinance
into
longer

the future.

..

make

for that increase, some¬

reason

Federal

greater

Our

number

repeatedly
recom¬
mended two major steps to combat
inflation:
first, to abandon the

of

inflation

which

directly

the

supply. Perhaps if he knew

We

the

as

flow
in

thing might be done about it.

and

which

him

to

increase

dollars

the

present

inflation,

the

money

of

core

citizen, and
readily be brought within
understanding,
that
these

from

increase

supply

wage-

knows that he needs more
wages to keep up his standard of
living. It certainly is a matter of
earner

his

is

Buyers are on the cautious side, to say the least,
are some scale purchases, these are
being spaced
widely than was the case a short time ago. Sellers have been
appearing throughout the list, with the principal concentration,
nonetheless, in the restricted obligations which are getting the pro¬
tection of an "orderly market."
There is considerable talk now
about what will happen to the "orderly market" if the confused
conditions continue lor long. Although it is reported the exchanges
and while there

it could

and

reasons

for

every

========

more

vital interest to every

money

supply

and

up,

Dealers Organize

heavier volume.

knows that the cost

now

of of living is

newspapers

their
constantly informed'about

increase'
our

is

the
than

country

readers

in

service

greater

Governments

The uncertainty that shrouds the whole money market is be¬
ing reflected in a defensive government market, with somewhat

keep people informed about the state of the money supply and
the unfortunate results to everyone of continually increasing it.
rendered

on

By JOHN T. CHIPPENDALE, JR.

By THOMAS I. PARKINSON*

clearly the duty of

Thursday, April 5, 1951

.

Arizona Security

Keep Public Informed
On Money Supply!
Mr. Parkinson asserts it is

.

.

of the June and December 1967/1972s

(as of last Monday)

for the non-marketable

The total included $5,365 billion exchanged by Federal and

Treasury investment accounts.

midnight tomorrow. A

very

Subscription books will close

successful conversion is

now

at

assured.'

15

Broad

Street

NEW YORK 5

WHitehafl 3-1200

45 Milk Street

BOSTON

9

HAncock 6-6463

jTolume

173

Number 5000

.. ..

The Commercial and Financial Chronicle

(1449)

apply for membership in the Na¬ than by one all-powerful state. ' It is a
large order, biit by no
Security Traders Associa¬ That, we suggest, will be Amer¬ means an impossible one. We aim
tion,
which
has
23
affiliates ica's answer to the socialist sys¬ to do our share of the
job, in the
throughout the United States and tems of Europe.
years that lie ahead."
a total
"To promote the mutual inter¬
membership of over 3,800
The
Almanac
also
lists
all

Clarke

tional

men.

ests of business and its customers,
and to keep the public correctly

Mr.

Appointed By

Clarke

sistant

to

the

was

25

formerly

as*

of the

Chairmaii

Board of Lion Oil Co., El Dorado,

Texas Eastern
,

Arkansas,

where

he

was

in

Jack Clarke has been appointed
charge of public relations.
He
of
operation. Director of Public Relations for has been closely associated with
bers
of
the
Arizona
Securities informed regarding the facts and Present partners include Richard Texas Eastern Transmission Cor¬
the toil and gas industry since
Dealers Association:
opportunities of investment, must Pigeon, Orrin G. Wood, Archie M. poration, George T. Naff, Exec¬
James Anderson; Fred C. And- be one of the main functions of Richards, Philip M. Stearns, Rob¬ utive Vice-President of the com¬ January, * 1938, when he joined
laur; Anthony J. Armbrust; Paul the investment banking business ert J. Lewis, Henry H. Newell, pany, announced. In this position Lion Oil Co.'s Budget-Statistical
in the modern world.
Clarke
D. Beck, Refsnes, Ely, Beck &
will
Successful, Stedman Buttrick, Jr., G. Norman Mr.
supervise
all Department. -He became manager
Co.,
Phoenix; John W. Chappell, E. F. accomplishment of this task could Scott and Orin T. Leach. Messrs. public relation activities of the
of this department in 1941 and
Hutton & Co., Tucson; Fred A. mean increasing, by five or ten Richards, Lewis, Scott and Leach corporation,
including financial
and stockholder relations, publi¬ later was assistant to the pres¬
Cuthbertson;
Henry
Dahlberg, times, the number of individual are in the company's New York
cations and advertising.
ident.
Henry Dahlberg & Co., Tucson; investors in corporation securities. office.
The

following

charter

are

mem¬

partners of the firm through its

hundred

years

,

Kirk C.

Dunbar, William R. Staats
Phoenix; Kenneth A. Ellis,
& Yarrow, Phoenix;
Sims
Ely, Jr., Refsnes^ Ely, Beck & Co.,
Phoenix; Albert Ficks, Jr., Benton
Co.,

Ellis

M. Lee, Ficks &
Tompane, Phoe¬
nix; Alvin W. Galloway; Samuel
A. Ginsburg.
Harold

G.

Hanchett, Refsnes,
Co., Phoenix; John

Ely, Beck &
L.

Hay,

Jr.;

Roland

Inflation itself is

practical effect. Like in

a tax,

J.

Hicks,
Shields & Co., Tucson; Leonard E.
Jones; Henry H. Kaufman; W. E.
Kidd, E. F. Hutton & Co., Scottsdale, Ariz.; Benton M. Lee, Ben¬

any

ton M. Lee,
Ficks & Tompane,
Phoenix; Ed Murray, Ed Murray
&
Co., Phoenix; F. A, Nathan;

other tax, it penalizes the people

individuals

as

for the temporary benefit of the Government.

James M. Ovens, E. F. Hutton &

Co., Phoenix; John G. Owen; K. I.

From THE GUARANTY SURVEY

Perrine.

Joseph C. Quinn, Merrill Lynch,

Pierce, Fenner & Beane, Phoenix;
Joseph E.

Refsnes, Refsnes, Ely,
Phoenix; J. L. Refs¬
nes, Refsnes,
Ely, Beck & Co.,
Phoenix; F. C. Rogers; J. P. Sena;
Randolph E. Soranson; Eugene F.
Tompane, Benton F. Lee, Ficks &
Tompane, Phoenix; Vick Traux;
A. L. Tripp; Peter Ver
Cruisse,
Beck & Co.,

Guaranty Trust Company
FIFTH AVE. OFFICE

Broadway

140

Madison Ave.

of New York
ROCKEFELLER CENTER OFFICE

MADISON AVE. OFFICE

Fifth Ave.

MAIN OFFICE

at

44th St.

Rockefeller Plaza

60th St.

at

at

50th St.

BRUSSELS

PARIS

LONDON

Marache,

Sims & Co., Phoenix;
Kirby L. Vjdrine, Kirby L. Vidrine Co., Phoenix; Arthur I. Web¬
ster; Malcolm C. Woodward; Hen¬
ry Dahlberg & Co., Tucson; Paul
Yarrow, Ellis & Yarrow, Phoenix;
Arthur J. Zuber.
One of the first functions of the
will be a cocktail party

tl

J. LUTHER CLEVELAND
Chairman of the Board
'■

i

-

t

'

.

Condensed Statement

WILLIAM L. KLEITZ
President

of Condition, March 31,1951

RESOURCES

ASDA

and dinner in honor of Wallace H.

Fulton, Executive Secretary of the
National Association of Securities
Dealers, and Howard Buhse, Chair¬
man, Board of Governors, National
Association of Securities Dealers
to

be

held

at

Jokake Inn,

April

11, 1951.

100th

of

the

firm's

100th
anniversary, the current
Investors' Almanac, published by

Estabrook
the

of the Board, Duke Power Company
F. W. CHARSKE

Chairman,

»

Executive Committee,
Union Pacific

Railroad Company

J. LUTHER CLEVELAND
Chairman
of the Board
W. PALEN CONWAY

&

Co., reviews briefly
background of the company

President,
Crane & Co., Inc., Dalton, Mass.
STUART M. CROCKER
President,
The Columbia Gas System, Inc.

of Davis Polk

JOHN W.DAVIS

Wardivell Sunderland & Kiendl

CHARLES E. DUNLAF
President,
Beruind-Wbite Coal Mining Company

and discusses "The Job Ahead for

GANO DUNN

Investment

The J. G.

The

Banking."

booklet

brook & Co.
lished

1851,

that

Esta¬

was

originally estab¬
Boston
on
April
1,
John
Brewster
and

in

by

Charles

notes

A.

Sweet

as

partner¬

a

ship under the

name of Brewster,
Co., to conduct a stock
exchange and banking business.
In
1874, when Arthur F. Esta¬

Sweet

brook

&

admitted

was

to

the

part¬

nership,
the
firm
name
was
changed to Brewster, Basset &
Co., and in 1883, to Brewster,
Cobb
it

&

has

Estabrook.

been

Looking
Almanac

Since

Estabrook

to

the

&

1896,

Co.

future,

observes

the

that:

WALTER S. FRANKLIN
The Pennsylvania

Railroad Company

fairs

on

its

af¬

the assumption that any

major business enterprise is af¬
a public interest.
We
hope to see the day when prac¬
tically every major -corporation
will be owned by hundreds of

fected with

thousands

of

small

stockholders.

Public ownership of
enterprise,
certainly—but ownership by mil¬

lions

of

free individuals




rather

1,294,961,299.88

Other Securities and
Credits Granted

17,354,974.71

•

.

Stock of Federal Reserve Bank

24,959,162.88

Obligations

10,935,459.14

Acceptances

on

m

9,000,000,00

.

Accrued Interest and Accounts
Receivable

7,400,869.75

Real Estate Bonds and

*'

.

187,404,199.24

17,753,732.76

Mortgages

Bank Premises

.

•

5,020,209.15

•

•

$3,021,824,366.55

16,572.40

Other Real Estate
Total Resources

•

•

JOHN A. HARTFORD
Chairman
of the Board, The Great Atlantic &
Pacific Tea Company

Chairman
of the Board,
Anaconda Copper Mining Company

CORNELIUS F. KELLEY

Chairman
of the Board,

The M. W. Kellogg Company

WILLIAM L. KLEITZ

President

Chairman
of the Board,
Air Reduction Company, Inc.

WILLIAM C. POTTER

viii

I

*i

''.L

of Roosevelt & Son

Chairman,

Executive Committee,

Illinois Central Railroad Company

THOMAS J. WATSON

T.

.

.

>*'» <*>■

Surplus fcund

Deposits

.

%

.

if

JO,000.00

.

75,8 i 9,'7 2 3.27

Capital Funds

v.

..•<<••••••••••

375,819,723.27

2,579,928,778.36

$ 16,826,920.61

Acceptances
Acceptances Held for

3,915,800.75

Investment

$

Dividend

»

225,000.00

Foreign Funds Borrowed
Less: Own

J

*

2QQ,000,000.00

•

.

'

Undivided Profits
Total

•

•

4(!JXl 'nil

Retired

GEORGE E. ROOSEVELT

I
111

LIABILITIES

,

MORRIS W. KELLOGG

I
L. i.J

Capital

EUGENE W. STETSON

conduct

«

•

•

782,194,389.80

••••*.«•

•

American Cyan amid Company
LEWIS GAWTRY

be preserved in this country.
We
look to see the time when every

will

Public Securities

752,227,696.08

President,

CARROL M. SHANKS
President,
The Prudential Insurance Company
of America

corporation

Obligations

Loans and Bills Purchased

$

RAYMOND C. GAUGLER President,

and the public must be fur¬

strengthened,

•

.

White Engineering Corporation

if anything
like freedom of enterprise is to

ther

Hand, in Federal Reserve Bank, and Due from

U. S. Government

President,

CHARLES S. MUNSON

"In
our
judgment, close and
friendly relations between busi¬
ness

on

Banks and Bankers

WINTHROP M. CRANE, JR.

Anniversary

observance

Chairman

GEORGE G. ALLEN

CHARLES P. COOPER
President.
The Presbyterian Hospital
in the City of New York

Esfabrook & Co.
In

Cash

DIRECTORS

Payable April 16,1951

Items in Transit with

Foreign Branches

12,911,119.86

3,000,000.00

1,223,147.71

mim

Accounts

Payable, Reserve for
Expenses, Taxes, etc.
•
•

•

48,716,597.35

65,850,864.92
WM

$3,021,824,366.55

Total Liabilities

Chairman

of the Board, International

Business Machines Corporation

ROBERT W. WOODRUFF
Chairman, Executive Committee,
The Coca-Cola Company
"

Securities carried

at

$339,817,967.01 in the above statement are pledged to qualify for

fiduciary powers, to secure public moneys as

required by la.vty>ind for other purposes.

Member Federal Deposit Insurance

Corporation
V

Tl/

U
y<-4

wB

26

The Commercial and Financial Chronicle

(1450)

I submit that this

The GOP and

U.S.Foreign Policy

defeatist

over-estimate
munist

By HAROLD E. STASSEN*

t

policy

free

Former Governor of Minnesota

of

nation

strength,

and

frightened approach to
Careful study

splits in Republican Party over our national foreign policy, but
points out the party is solidly united on eleven major issues
in opposition to policies and actions of current Democratic
Administration.

Sees

war

no

Russia

with

if

the

conviction

that

probable in next

my re¬

firm

my

America

our

freedom

and

Com¬

over

munist im¬

The

they should be permitted to take
Asia, that they would never

over

the

attack

they did

struggle
h i

w

are

h

c

we

now

en¬

o

am

t imistic,

p

furthermore,
that

the

victory

this

of

devasta¬

third

a

be

can

without

the

domination

other

con¬

resources

would be

of

tin

the

all

of

the Southeast,
to the United

menace

a

Asia, in¬
rubber and

and

States, that their intricate spying
the American Navy meant that

on

won

disagreed. We

us

sidered that the Japanese militar¬

cluding

world

they intended

day to fight it,

some

that they were tenacious fighters,;
that they were a grave concern
to

for

reasons

this

conviction,

this

optimism, may
lighter vein, that I
the

fact

that

all

I

of

in

say,

am

and
a

of

aware

the

of

men

Chicago have not always agreed
with me on foreign policy. I will
not gloss over that disagreement.
I

believe that you are entitled to
a
frank and forthright dis¬

hear

cussion

of

it, and this is what I
will do, with complete recognition
of the
with

right of those who disagree
to

me

spect

for

do

their

views.

and with

so,

re¬

sincerity in their

Thus
two

urged and supported

we

a

navy,

straight

from

12 years

difference

in

arose

1947.

has been

Some

talk

to such

The

the

present

before

and

questions
first

proceed

to

policy

I

respond

foreign

world

policy

peril to

our

and

coun¬

agreements

then

felt

ible

Hitler

not

was

the United

a

States, that
and

invinc¬

Europe, that
England
capitulate under his pres¬

remain

neutral, should not
bargain with

rearm,

should

when

he

had

finished

Hitler

his

Euro¬

conquests.

pean

Others

Party
that

of

in the

us

disagreed.
Hitler's

domination
ruthless

Republican

We

considered

ideology

of

slave

races,

of

liquidation

of

Nazi

his

civilian

peoples who opposed him, and his
delusions of grandeur, were a real
threat

to

believed

the

United

that

if

he

States.

We

carried

goal of domination

of

out

all

of

Europe,

England,
Africa
and
Arabia,
the
result
would
be
desperately dangerous to America.
We considered him

to

be

power¬

ful, but not invincible. We did not
believe England would surrender
and

we

believed

that

we

could

and should defeat Hitler. Thus

we

supported rearmament, lend-lease,
and

the

repeal

considered that

of neutrality.

„

then,

as

March

30,

those among the

are

defense, that it
successfully defended
own

be

ground,

Club of

that

France

,

Re-,

cannot

the

on

a

our

children

now,-in the

two

before the
Chicago, Chicago. 111.

1951.




should

and

can

withdraw tQ a Gibraltar or fprtress
of this hemisphere with outposts
on

the two

oceans.

I respect

*

•

the viewpoint and the

who present it. But I cannot

men

should

build

that

if

Commliill^^rders

attack

I believe that if this

it

would

icy was
polipy was
interpreted

rpretfd

be

an

it

can

back while the people

Russia get a chance to re¬

*"■;

■;

■.

I believe the free nations of the
world

should

and

can

be

able to

place fn the field throughout
190

excellent

well

armed

three

".within

ithe

years.

America, can and should furnish
approximately one-eighth, of this
manpower

and supply about one-

fourth

tne.-modern

of,

forces

of

for

nations.

divisions

General

in

program

arms

free

the

of „the3e

under

should

Europe

of

"

East-Mediterranean-South
of which not

area

than

more

two should be American and these

two should be at the strategic air
bases. ■

w

Pacific,

be

of

Japanese,
wapantoc,

which

15
x«j

15

Formosa

Chinese, 5

Philippine,

4

^British, 41

Indonesian,

4 Austra¬

French,

would

none

people
an ab¬

everywhere, it would be
dication
of
the
leadership
America

which

has

been

of

by

won

superb

production, great accom-,.
plishment,
brave
fighting,
and

much sacrifice.

As
that

the

result

a

the

odds

would

Communists would

over

nation

next

five

after

years

nation

be

take

in

the

without firing

a

Ten divisions in South America,

of which

should

United

States.

should

stabilize

be

These
and

of

the

divisions

half

be at these outposts of
our

own

Behind

American

these

danger for

security.

190

in

Europe, the Near East oil and the
Far

modern

gold,
and

rubber

and

they

enslave

and

and

tin,

the

would

the

African

dominate

two-thirds

of

the

have

I

power,
courage

its

test.

It

And, there

might

would

be

yet
no

doubt about where American boys
were

be in
with

fighting and dying. It would
their own backyards, along
millions

and their

of

their

neighbors.

families

we

With

then

can

notwithstanding

Soviet Empire.

be

to

established.

the reports of 250 divisions in the

people on the face of the earth.
Gibraltar-America would then
put

be

weapons

confidence

free

am

convinced

that

the

man¬

the production, and trie
is in America and in the

nations

of

the

world

to

ac¬

complish this result.

mechanical abil¬

no

Britain

disagreed. We felt-

us

ominous

an

to

its

air

hazard;' that

with the East German and Balkan-

it

/also

control

keep

to

and

America

maintain

should

strong

a

over,

on,

.unde/e the sea.--'r.V v
r. Of equal importance; anextenI program to assist' ana en-

•Sive

courage

millions, within

the

the

to therr'-own. the "Soviet, empire who" 'want /more
Soviet Union would .huild .sizable' freedom and independence should
armed forces, that4h6'Communist be carried: dri with
ingenuity and
Kremlin's
intentions were defi¬ determination. This counter-revo¬
nitely dangerous to
Thus
we
urged

us,

lution

legal
action
against the Communist parties in
all free countries, including our
own, as being subversive agents of
a foreign power, we pleaded for a
ban on all shipments of war ma¬
terials, atomic devices, electronic
.

apparatus

machine

and

tools

to

the Soviet Union and its satellites,

called fqr the prompt building

we

of

larger American

a

for

and

Air

extensive

an

Force

military

training program.
Republicans United
On
11

the

-major

issues

united and

11 Issues

there

we

our

solidly

was

which

were

which

on

Party
on

on

hand

other

Republican

vigorous¬

ly opposed the policies and actions
administration.

(1) We abhorred the State De¬
partment's

undermining

MacArthur

eral

after

of

Gen¬

the

war,

their ignoring of his advice, their

weakening
n

Asia.

.

of

his

leadership

in

'

(2) We opposed the administra¬

coddling of Chinese Com¬
munists, their appraisal of Mao
Tse-tung as an agrarian reformer,
their
holding
back
on
aid
to
Chiang Kai-shek when World War
IP ended.

..

.

(3) We were against the parti¬
tioning of Europe under the Pots¬
dam
Agreement
and
fought

result

of

the

Yalta

we won

of Article 109

Conference.

Article 51

desiring

gether

so

nations

in

and

atomic

self

could

defense

work

of

America."
a

We insisted

real champion

Latvia,

Moslem

a

Turkestan, Armenia, and the Bal¬
kan

countries,

deterrent

is

.powerful

a

Communist

the

to

Kremlin and
free

worthy ally of the

a

nations.

Through it all
keep

must and can

we

our economy

sound at home

by firm steps against inflation, by
cutting down sharply on nondefense spending, and by

ing

production

our

e^ppnd-

through;/the

greatest economic system

tory,

iq« his¬
American free system.

our

.

If these

resolve

things

.not

done and

are

to

fooled

be

we
nor

frightened by the Communists, I
am
optimistic that we can come
through
ahead
that

the "dangerous

without

the

world

a

Communist

begin to

decade
war

centers

deteriorate and

and
will

fall, or

change and evolve in the direction
Thus

I

do

support firmly

outspokenly,

the American
Western
Europe

in

gram

and
pro¬
now

being
conducted
by
the
able,
patriotic, experienced leader, Gen¬
eral Dwight D. Eisenhower.
Thus
I
reemphasize that the
long-range objective of American
foreign policy should be to win a
victory, for civilization and free¬
dom, over Communist imperial¬
ism, without a world war.

This

"victory

should
faith

be

our

without

will

in

win

goal!

high

God, with
confidence, we can,

courage
we

war"

With
and

must, we

through!

Mesirow & Co. to

will

Communists
in

key

and

their

fellow

positions in the

government. We exposed

be

engage

formed as of April 6 to
in the securities business

from offices at 135 South La Salle
Street.

Partners in the

new

firm

will be Norman Mesirow, member
of the New York Stock
and

(6) We attacked the infiltration

Federal

done

to

independ¬

Ukraine,

Estonia,

Em¬

a

freedom, on an enlarged basis,
separate from the State Depart¬

believed

had

Red

desire

and

to¬

despite

for

travelers

America

the

Lithuania,

the

worthy

CHICAGO, 111.—Mesirow & Co.

that it should be

of

for

ence

inside

its

freedom

that the peace-

(5) We pleaded for a strength¬
ening of the weak and wobbly

give top

establish

the inclusion

veto.

"Voice

with

that the Charter

so

could in the future be rewritten,
and

force

pire,

of freedom.

tion's

strength, keeping out front in air
that

.

With

ment.

With it America should

priroity

in
Re¬

our

in air research and in air

design,

navy

Others of

Failing that

divisions

being, and not too far behind, an
equal force in inactive reserve

uranium

positions
.

.

publican Party has been virtually
The Democratic disregard

minor,' that the

were very

of this

should

East

power,

ity.

were

public
,

all of these matters

In

united.

the
against the Morgenthau Plan for
hemisphere.,/ making
Germany
a
pasture
Total American divisions should vacuum
open to the Communists.
be approximately 24 of which 8
(4) We tried to remove the ab¬
would be on duty at home and solute veto from the United
Na¬
the balance of 16 divisions would
tions. which was placed there/as a

southern

quired
in
America,

Com¬

secure

shot.
Before
many
years
they
would control the Ruhr, and all of

Congo

clean-up of corruption

a

government at home and that
integrity should be re¬

exag¬

that the world Communist parties-

Sixty divisions should be in the
Western

lian, 1 New Zealand, 1 Canadian,
4 American'and 3-JSouth Korean.

free

in

being

was

of the Democratic

throughout the world, ,as?i,^,. timid
and cowardly retreat by America
in
the
face
of
Communism, it
demoralize

gerated,

Forty divisions should be in the
Near

Asia

be¬

Eisenhower's

Western

combined.^

t

followed

gin witlj

honor and

Hl^K1varnfied..v production.added

the ground

on

be thrown

should

follow it.

<(11)
We
urged
that
moral
leadership in the world should be¬

Russian

Russians had

German, 16 French, 10 American,
10
Spanish, 8 British, 8 Yugo¬
slavian, and 12 "of Scandinavia,
Canada,
Belgium, and
Holland

bankrupted if it main¬
troops in Europe,

America

the

threat

parties

world

sizable

be

at home was to be strong.

economy

that they were a weak
that
their
Communist

munist

against air attack. The Communist

strength

leaders

Republican

lieved" that

which approximately 16 should be

with Russia is

that

Sortie

nation,

under

be

cannot

depended upon at all, that
war

survive.

*An address by Mr. Stassen

Executives

We

the, best hope for

the future freedom of
rested

s,-\

l

ica will be

that the United States should

sure,

f

and

in

would

his

There

*

1940

Republican leaders

our

all-powerful

was

take up the curfent

us

Western Europe will be massacred
when that war comes, that Amer¬

in

came

that

to

menace

Problem

policy problem.

tains

Some of

and

Now let

Policy

dis¬

1941.

he

Current

the

to

should,

"

.

the

world

major

these

industries

volt; v

wish

the floor.
of

J

war

critical points is the major reason
for the very bad postwar record

practically in¬
evitable, that American troops in

as you may

thing of

a

Soviet is also busy putting

be

ask from

to

The

Eighty

we

become

may

the past.

Western Europe will not fight for.

over

problems

airplanes

these

the

materials

war

Communists

stopped and revealed the amazing
transhipments
of
copper,
and
petroleum to Communist China.
(10) We "contended that "social¬

supported Jhe Marshall

Plan, backed Paul Hoffman,-tried
to-get .conditions against further
socialization
included
in
the

successful strategic bombing from

lican

American

of

Chinese

ship¬

that

demanded

We

(9)
ments

'

inside

in

supplying

ization must stop if/defenses were
to
be
made
effective
and the

a magnet. There is considerable
grants, and took the lead against
possibility scientifically that this the socialization of the Ruhr.
cap be done, and if it is perfected
The fourth difference occurred
pnd installed\on a large scale, - in late 1947 and early 1948.

so

on

from

on

munist armies.

*

we

the Chinese
preventing the

by

the mainland, from
blockading the Communist coast,
and
from
harassing the
Com¬

executive not under the State

Thus

between

helped

Chinese

Formosa

cialism and Communism in West¬

-

have

guerrillas

Department, that the drift to So¬

jet
will

bomber just as a nail is attracted

publican leaders who believe that

background of this is

a

wedge in
of defense

Communists

an¬

to

its

before

are

perfect
missile
which

automatically fly to and destrpy
a

which

ern Europe could be halted.
being

Russia, to

interceptor

Republican leaders
of Republican advice and Repub¬
our

recommendations

ness

to

'

in

deep division of opin¬

brief

desirable

home. Strenuous efforts

tn'ese

Party.

endeavor

itself against this air at¬
tack and against this resistance at

the Republican

a

ion within

concentrated

outside of the

Some of

the

which there

on

arises from the

protect

tions

third

The

The

have been four
great issues of foreign policy in
the past

Soviet

long

line

(8) We exposed the evil instruc¬
to the American 7th Fleet

people,

own

vital

a

tions

guilt at home from such a
selfish policy would be
terrific, that we could and should
organize an extensive economic
aid
program, that it should be
administered by a competent busi¬

-

,

The real danger

the

were

our

was

Japan and the Philippines.

was pro¬

narrow,

this,

in the next

war

three years.

divisions

there

the

place

world

no

of

Formosa
that it
America's

not be abandoned,

exterior

moral

we

try today.

Speaking

on

I

-

Long

that the bitterness abroad and the

im¬

now

which

cestral homes

insisted that

We

(7)
should

assinine.

was

disagreed.

us

nations

the

mountains in the Urals to protect

peals.

Disagreements in Republican
Party

shoulder,

people

backed aid
JKremlin is increasing its ruthless
to China against the Japanese in¬
effort
to
wipe
out
resistance
vaders, we pleaded for alertness
groups throughout its vast regions.
in the Pacific, we. supported Dr.
Before
these
efforts
are.
far
Walter Juddin his eloquent ap¬
along, it is vital that the free na¬
ocean

for

.

odds

key

us.

war.

Before proceeding to discuss the

therefore

made

odds

that"

are

and horror

States, that if

would defeat them in

we

Others of

ists'

I

gaged.

tion

United

and

States, that

six weeks.

in

Harold E. Stassc-n

United

the

to

the

The Kremlin leaders know

second

onistic

of

hope¬

were

posed, we urged that this nation
in its position of riches and plenty
could not ignore the suffering and
misery left in the wake of war in

war

prisoned in her empire.

the

world¬

a

counter-revolution of many

a

millions

perialism in
wide

starts

na¬

to complete
Communism, that

before the Marshall Plan

any

ica, standing stalwart together.

and

civilization

Union

of

other

way

or

Others

convinces me that

at

or

the

further economic aid

the com¬

great nations, Britain and Amer¬

major difference
cooperating with us arose in the same period. Some
will win a
Republican leaders believed that
victory for the Japanese had no designs antag¬

nations

the

concisely

express

ment.

on

Socialism

time in the
next three years Russia will be
destroyed at home by American
air and atomic strength and will
face

May I at the opening of

Soviet

tomorrow

three years.

marks

them, that they

lessly

bined misappraisal.

Prominent Republican Party leader reviews disagreements and4

for

sent to

a

on

should

Alger Hiss and William Reming¬
ton
and by investigation drove
many others out of the govern^

all" that

based on an
present
Com¬

on
an
under¬
American and other

of

it

Thursday, April 5, 1951

.

tions, that the Western European
countries would
waste anything

desperate and

strength,

estimate

President, University of Pennsylvania

is

.

.

ners,

Albert

and

Cahn,

limited partner.
been

active

dealer in

Exchange,
general part¬
J.
Freiler,

Abraham

Mr. Mesirow has

as

Chicago.

an

individual

_

Volume 173

Number 5000

.

The Commercial and Financial Chronicle

.

.

(1451)

With First California

Bankand Insurance Stocks

ANGELES, Calif.—Robert
Cunningham has joined the

THs Week—Bank Stocks
The most

investments

important news last week in the field of bank stock

South

was

Stockholders

to

are

be

asked

to

proposal at

the

approve

a

special meeting to be held May 2,

1951 for this purpose. If this
action is approved, shareholders will be offered additional stock
at $40 a share in the ratio of one new share for each 6.2 shares
held.

640 South

cisco

Peter L.

(Special

to

The

Financial

Peter L.

Chronicle)

When

$20

a

L.

Dabney

LOS

officer of

an

ANGELES, Calif.—Robert

R.

has become connected with Thom¬

ly associated with Paine, Webber,

staff of Marache Sims &

Peace

has

been

added

is

sale

406

South Spring

the Los Angeles Stock Exchange*

of 61.

Street, members of

BANKING^

accomplished the number of outstanding

similar amount to surplus.

Capital would thus be increased
$144,000,000 and surplus from $136,000,000
$156,000,000. Total capital funds of National City including the
$59,000,000 of undivided profits shown at the end of March would

$124,000,000

to

to

be in
of

of $359,000,000. These totals exclude the capital funds
City Bank Farmers Trust Co. which amounts to approxi¬

excess

the

mately $30,707,000.

•

.

According to present plans, shareholders upon approving15 the
program will be mailed subscription rights about May 14th to
holders
June

of

record

4th.

The

8th. Rights would expire
price of the stock indicates

May

present

the rights of something over $1.00
While the 16.1%

in

on

about

cr

value

a

for

share.

a

increase in the number of shares will result

dilution of the per share

some

income, the statement issued by
City indicates the bank expects earnings will be suffi¬
cient to continue payment of the present $2.00 annual dividend
National

the

on

increased

number

BANK

NATIONAL

shares.

of

In this same connection, the quarterly statement of National
City for the period ended March 31st shows a favorable earn¬
ings record.
;

OF THE

OF NEW YORK

CITY

Net

current operating earnings of the banks including those
affliate, City Bank Farmers Trust, were $5,731,258 against
$5,029,166 in the first quarter of 1950. Per share results amounted

its

of

to 92 cents in

Profits

to 3 cents

1951

share

a

to

against $739,837 or 12 cents

as

a

93

for

cents

Other

New

the

period of 1950.

same

compared
:

Trust, Irving Trust, Chemical Bank & Trust, and Public National
&

Trust.

:'r>

.

Manufacturers

equal to $1.18
quarter

fv''

•,

reported

share compared

a

1950.

of

Trust

net

earnings

with $1.12

for

The

the

period

Figures for both periods have been computed

Irving t Trust also

showed

increasfe in

an

outstanding.

earnings

compared with 35 cents

net

a

Chemical Bank showed

before.

year

operating earnings for the first quarter equal to 81 cents

share compared with 72 cents in 1951 on

State and

Obligations

Municipal Securities

•

.

.

<

1,419,840,131.68

•

202,666,148.58

.

Other Securities

219,222,525.29

40,133,701.85

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

Customers'

1,869,667,421.64
10,703,033.61

.

32,303,627.17

Acceptance Liability

a

slightly fewer number

a

U. S. Government

per

share, reporting ii£t operating income equal to 37 cents in 1951
as

$1,435,547,720.10

•

,

share in the first

a

the basis of 2,519,500 shares of capital stock now

on

Cash and Due from Banks

York

City banks which have shown favorable
earnings for the first quarter of the year include Manufacturers
Bank

1951

RESOURCES

$188,499, equal
share in 1950.

Total per share earnings were thus equal to 95 cents as

with

STATEMENT OF CONDITION, MARCH 31,

compared with 81 cents in the previous year.

securities for the quarter amounted

on

28,613,499.12

Banking Houses

•

,

,

Other Assets

.

.

.*

of shares outstanding.

The

ended

Public

March 31st

$1.06 for the
The
not yet

for the

been

National

reported

net

amounting to $1.13

earnings for the

share

a

as

quarter

statements

of

other

York

New

period.

and

quarter is viewed

as

Although there
outlook,

including

indications

City banks which have

the

banks

along

are

expenses

other

have

corporations

showing made in the first

number of uncertainties in the current

a

the

of

prospect

the

New

York

higher
City

taxes,

the

present

be

Of primary

their

considerably

assetsr

higher

to

a

invested

return

although there has been

deposits

•

,846,660,746.52

) <!

I Dividend Payable

51

some

combined

in

loans.

a

These

loans

per¬

yield

|han government securities and
increase in

with

a

requirements,

reserve

hardening

of

interest

rates

•

v

2,960,000.00

.

16,966,348.20

.

16,706,819.64
.

'

'

v

•

Acceptances Outstanding
Less: In

Portfolio

"

■«.

...

,

•

37,042,858.56

....

......

3,059,600.31

.

♦

Capital Funds:

Capital Stock..'

.

.

...

$111,000,000.00

(7,400,000 Shares-! 15 Par)
.

.

189,000,000.00

.

.

54,935,516.63

good level of earnings.

a

Undivided Profits

BANK

354,935,516.63

NATIONAL BANK

and

of INDIA, LIMITED

INSURANCE

Bankers to the

$5,272,212,689.24

Government in

Kenya Colony and Uganda

STOCKS

Head

Office:

26,

London,

Bishopsgate,
E.

United States Government and other securities carried at $546,290,430.00 were

Laird, Bissell & Meeds
Members New York Stock Exchange
Members New York Curb

Exchange

120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Teletype—NY

(L. A. Gibbs,

*

1-1248-49

Manager Trading Dept.)

Specialists in Bank Stocks




Branches in India, Burma, Ceylon, Kenya •
Colony, Kericho, Kenya, and Aden
and

Subscribed

Paid-up
Reserve
The

Bank

Capital
Fund

£4,000,000
£2,000,000
£2,500,000

conducts

benking

and

public and

trust

deposits and for other purposes as required or permitted by law.

'

v

-

.

P

•

Zanzibar

Capital

pledged

C.
to secure

Bell

•

Other Liabilities

greater volume of loans should enable the banks to continue,

show

.

| Res'^yes—Taxes and Expenses.
•

larger

of*

Deposits

able to

banks will

importance in this matter is that the banks have

and

LIABILITIES

favorable.

are

that

with

maintain earnings at least equal to those of last year.

higher

$5,272,212,689^24

compared with

Considering the fact that operating

have been faced with higher taxes, the

a

13,514,880.20

.

.

published their operating earnings, indicate good results

increasing

centage

.

period of 1950.

same

every description of
exchange business

Trusteeships and Executorships
also undertaken

the

Jackson & Curtis, passed away at

Franklin

shares will be increased to 7,200,000 from the 6,200,000
at present. $20,000,000 of the proceeds will be allocated to capital
from

to

Co., 634

the age

McKinnon,

Street.

principal underwriter.

as

this

of

(Special to The Financial Chronicle)

Aerial Products, Inc. and former¬

&

part¬

Co.

Joins Marache Sims

.

TAMPA, Fla.—James R. Boyer

son

a

&

1

par

and

F.

Boston.

Murphy

Murphy,

1935 he had been

in

ner

Angeles and San Fran¬

Stock Exchanges.

Thomson & McKinnon

Any unsubscribed shares would be sold to the First Boston

Corporation

ment in

Spring Street, members

of the Los

Co.

.

*

ANGELES, Calif.—William

Patterson

the announcement of the National

City Bank of
New York setting forth its intention to raise capital funds of the
Bank by $40 million through the sale of 1,000,000 shares of capital
stock.
■
' •" " * *
.

Augustin H. Parker
Augustin H. Parker passed away
at his home at the age of 75 after
a long illness. Prior to his retire¬

has
become
asso¬
ciated with William R. Staats
Co.,

Company,
Spring Street. He was
previously with Shearson, Hammill & Co. and Marache, Sims &
647

M

LOS
S.

staff of First California

JOHNSON

H. E.

By

(Special to The Financial Chronicle)

LOS
B.

=

Joins Staats Staff

(Special to The Financial Chronicle)

27

.i.t,

Member Federal Deposit

~j<;

Insurance Corporation

'

•

28

The Commercial and Financial Chronicle

(1452)

-stand

why greater support has not
S. Treasury views

Sees Mobilization

been given to U.

which

Canadian Securities

tion

,

,

,

the

of

undeniable

James M. Mead, Federal Trade Commission

that

facts

,

dence

their continuance,

in

in

the brakes to check the impetus

both Canada and the United Stales

of the hitherto smoothly running

have resorted to ill-timed manipu-

economic machines. The wisdom
of the potentially powerful check

bond

economies caused
by unnecessary manipulation of

debt

and

of

lation

interest

in

rates

des-

a

the apof inflation. Little

attempt to arrest

perate

parent menace
effort

made immediately fol-

was

expanding

on

available goods and

of

In

emphasis

the

fact,

materials.
placed by

both the Bank of Canada and

Board

Reserve

Federal

on

the
the

raise interest rates
forced the liquidation of securities
to the central banks, and thus increased inflationary pressures.
In
this
way
the government bond
markets indeed became ''engines
necessity

to

inflation."

of

this

But

have occurred

need

had not the

not

mone-

jQSS 0f.confidence in the sus-

This

achieved

was

internals

quRe

tect

economy

the other hand

on

there

and

were

the

North American capitalistic sys- (jenC0 0f liquidation of positions
tern. By the inducing of vast re- taken jast fap jn anticipation of
armament programs which can cJqRjjj" revaluation. This liquidaonly be financed on the basis of ^jon created a moderate pressure
an ample volume of credit avail- on
Canadian
dollar
which
ability, it is hoped that an infla- agajn declined to nearly 5% distionary boom will be succeeded by count but the offerings appeared
an economic break. The obvious to be well absorbed. Stocks failed
counter to this tactic is to control to establish any definite trend and
but not destroy the boom and thus the most notable feature was the

ward

the

stultifying in-

fluence of high interest rates that
the advocacy by the Federal ReBoard and the Bank of Can¬

serve

ada

of

met

hard

a

with

policy has
widespread ap¬

money

such

There
is
apparently
a
deep-rooted feeling that possibly

avoid at all costs the anticipated
depression.

purportedly sound finance, it must

tbe basis of easy credit conditions. It would thus appear that
as far as this country and Canada
are
concerned, controlled easy
on

cor,tinued

strength

of

told

•

nessmen

v

■

In

Bond Club Field

Day

World

an

emphasis is

deteriorating

now

placed

influence of

outing

growth

on

year

Friday, June 8,
the

at

try Club, Scarborough, N. Y.

view

an

an easy money

that in both the United States and

instances

some

declining

econ-

Canada
the
periods of greatest
economic progress and highest liv-

omies of Europe, which are now
cited as appropriate examples, but
ing standards have occurred at conditions in North America are
times when easy money policies by no means comparable. The prohave
engendered
confidence in ductive potentials of both Canada
stable bond markets and

a

conse-

and this country are still so enor-

the

con¬

it for mobiliza¬

use

Chairman

FTC

Commission,

handling special
defense

"is plac¬

P.

Scott

power

in

said

that

addition

to

projects for the

mobilization

Wars I

of competition."
"Because their
in

concentration
experienced
II"

and

and to

as¬

agencies,

"opportunity
competi¬

business

tion." He added:

v

.

Rus¬

national

our

deep¬

periods, the
urgent,"

Commission's task is

more

he

.

Their

capacity.

effects

ly felt in times of emergency than
in normal competitive

"The small companies are a part

of

harmful

upon our economy are more

to survive and offer real

Hollow Coun-

of

that will

The

of

the

of

small

sure

Sleepy

policy on the value

point

money

terms

a

this

the

reasonable

on

strain upon our free enter¬ must continue to deal with such
prise system and increasing the problems as "restraint of trade and
monopolistic
conditions
York have been announced by threat of private monopolistic con¬ other
Clarence W. Bartow of Drexel & trols and unfair trade methods." stemming from industrial com¬
Intensive vigilance is needed, he binations, and the use of deceptive
Co., President
of t h e Club.
said, to prevent "the accelerated practices and unfair methods of
ing

economic

Undue

stra¬

tion purposes."

lunch¬

a

has

without undue restrictions to
cerns

the mobilization program

The

on

available

busi¬

Y.)

requiring

and

which

value and which has been
financed by government be made

group

a

facilities,

technology

tegic

the Advertising
and Sales Club of Syracuse, for¬
mer
Senator Mead declared that

will take place

after effects.

research

Syracuse

before

address

an

eon-meeting

amortiza¬

tax

privileges.

that

March 26.

on

without

stimulate the economy
giving rise to disastrous

of

(N.
■

M.

the

of

Commission

M. Mead

and

"Making
research
grants
to
small companies with appropriate

Federal Trade

0jjs

policy is necessarily of the dollar. This might be true
economic evil. The fact remains bi the cases of the static and in

moral

a

easy

tion

available

making

by

loans

them

to

power,

Mead

Jamcs

possible,

as

placed by. large

to small enterprises^

go

enterprises

eco-

James

Western

far

as

"Encouraging expansion of small

Chairman

money can

proval.
from

of

^

nomic

assuring,

concerns

concen¬

tration of

machinery

special

up

that subcontracts

to¬

trend

.

placing government contracts

for

ac¬

celeration

evi-

was

to

plenti¬

directly with small enterprises arid

by

preventing

.

"Setting
for

enterprise

To Be Held June 8

It is remarkable'in view of past

ful.
I

free

our

short

localities where it is more

,

actiVe

says

is

where labor

localities

small

program but
will also pro¬

virtual standstill. The

was at a
„„„„„„

by

experience of

mobilization

fense

During the week business in the
ket

of

contribute

to the immediate needs of the de¬

provokes its monetiza-

lowering the official be borne in mind that the envisupport levels but mainly by the able high living standard of this
prosecution of an intensive propa- country and its remarkable powPlans for the 27th annual Field
ganda campaign in favor of higher ers of both production and coninterest rates.
sumption have been created solely Day of the Bond Club of New
partly

utilization

will not only

external section of the bond mar¬

Notwithstanding the current remarket vulsion of sentiment in favor of

undermined

confidence.

business

tion.

tary authorities in both countries

deliberately

Maximum

strength of the government
jeopardizes the suc¬
cessful financing of the national

interest rates is all the more de-

lowing the outbreak of the Korean batable in view of it's inopportune
war to curb the ensuing scramble
application. Nothing is more d.efor what the public was led to sired by the opponents of Western
believe to be a declining volume freedom than the disruption of the

Chairman,

free enterprise system and is

on

increasing threat of monopolistic controls and unfair trade
methods. Advocates aids to small business.

and

market

authorities

monetary

is placing strain

program

^ajnecj

The

Thursday, April 5, 1951

.

Endangering Small Business

the apprecia¬

on

expanding economy of this
country was built on the basis of
easy
credit facilities and confi-

.

.

based

the

By WILLIAM J. McKAY
,

are

.

.

that

said.

staff

He

has

noted

the

directed

been

FTC

be

to

on

Forgan & Co.,

for

our-national the watch for "opportunists in the
An
equal opportunity business world who may seek to
them to produce is essential if exploit consumers and the govern¬

has

we

are

sell

of

is
strengths

output

Glore,
been

Field

named

Day

Chair¬

man.

He

to

"Thus

than

will

P.

Scott

part of

a

all

use

is

there

conflict

muscle.

our

ment

harmony rather

between the

imme¬

In

diate needs of industrial mobiliza¬

Russell

during the national defense

emergency."
the

:

.

competitive

free

between

contest

enterprise

and

regi¬

that inflationary pressures be assisted by
tion and the longer run needs of a mented
totalitarianism, Mr. Mead
can be readily offset. Throughout four general chairmen—Edward free enterprise
economy.
Com¬ said, "we must not only harness
of the needs of an expanding econ- history the purchasing power of D.
McGrew, of the Northern Trust petitive private enterprise is
to the task our productive capa¬
©iny. It is only necessary to look all
currencies has steadily de- Company of Chicago; William M. one of the fundamental expres¬
city to its fullest potential, but we
back to the war years when, as a clined, especially during periods
Rex, Clark, Dodge & Co.; Edward sions of our freedom and one of must also see to it that
private
result ol U. S. Treasury policy, of
prosperity. Whenever, this Glassmeyer, Jr., Blyth & Co., Inc.; the fundamental, supports as well.
quent willingness to take the market risks inherent in the financing

mous

not

process

only

were

the tremendous

war

is reversed it is invariably

expenditures of this country and

during

its Allies financed in

cent fears concerning the standing

a

smooth and

efficient fashion, but at the
time

same

the

productive capacity of
the country was markedly stimulated.

A

lowed

by

similar

policy
Canada with

was

fol-

equally

beneficial economic results.
Now

it

Federal

Bank

would

to

check

the

reckless

g™*** consumer credit and

that

the

Board

and

the

the building up of excessive in-

willing to
abrupty applying

ventones. Furthermore, iin the absense of an effective gold standard
the recent

Canada

take the risk of

action

appear

Reserve

of

of the dollar have been accentuated largely as a result of the current inflationary propaganda and
the failure of the monetary authorities to take timely appropriate

are

undermining of conti-

dence

the standing of governbonds only > gafatributes to
in

ment

and

j

to

Government

is

m.at^f various

A'tr

u

difficult

'

on

paper

-u'-'w

the other hand

perceive what constructive

sults

have

been

achieved

by

re¬

the

Provincial

recent abrupt reversal of mone¬
tary policy here and in Canada. It

Municipal

is all the

more

difficult to under-

Corporation

SECURITIES

CANADIAN STOCKS

SERVICE
For information
on

oil

A. E. Ames & Co.
Two Wall Street
N. Y.

or
quotations
industrial, mining or
security, consult us.

We

can

help

you.

&

Co.

Members:

The Toronto Stock Exchange

1-1045

The Investment DealersJ Association

Fifty Contfres* Street




we

330

Bay St. Toronto, Canada

Hamilton

Brantford

Sudbury

Windsor

Brampton

not

must preserve small

We

avoid

must

a

mittees, and their respective chair-

"Trade must

jeopardize the survival of our
competitive enterprise system.

men, are:

tation

of

Attendance & Transpor-

W

Scott Cluett

greater concentration

even

economic

power,

or

.

Harriman

"Harnessed

.

.

Circulation—Rob-

The FTC Chairman

G. Johnson, Johnson & Bailey;

by advertising in both peace and

Mr. Mead pointed to the op¬
portunities for service offered by
present conditions. But he warned

war,

pointed out

that in industrial mobilization for

^fbeverages—Ernest J.
Altgelt/ HiMs^Trust & Savings
r

that FTC will continue to be alert

Dinner

military purposes there is a strong
tendency to rely upon big com¬
Bank; Entertainment, Music and panies more than upon small com¬
Side Show—George R. Waldmann, panies. "The strains and stresses
Mercantile

Trust

-

Commerce

Bank

&

of this mobilization

Co.; Golf—Gustave A. Alex-

controlled,"

period, if

this tendency
Noyes, Jr., size and power of large enterprises
Hemphill, Noyes, Graham, Parsons and by subjecting small enter¬
&
Co.; Horseshoes — Arthur D. prises to special risks and diffi¬
Lane, Chase National Bank; In¬ culties."
Race—Jansen

door

Sports—Robert

W.

Fisher,
Blyth & Co., Inc.; Publicity—Wil¬

After

reviewing the factors that
lead to these results, and showing
liam H. Long, Jr., Doremus & Co.;
how
a
large proportion of the
Tennis—G. H. Walker, Jr., G. H.
country's total productive capacity
Walker & Co.; Trophy—Earl K.
is thus prevented from contrib¬
Bassett, W. E. Hutton & Company. uting to the country's economic
his

audience

bilize

the

that

Dept

.

for Savard Co.

and if
soon

MONTREAL,

Que.,

Canada—

that

member

Bond Traders'

George
of

the

E.

Mur¬

Montreal

Association, is

in charge of their

now

trading depart¬

mo¬

of

want to do it

take the necessary steps

enough."

"Making
date

Some of these steps

and

periodically

nation's

idle

presen¬
or

or

Advertising in

'

the

he said, needs to be

fair."

emergency,

"scrupulously

He added:

"If, for example, substitute
terials have had to be
in

ma¬

introduced

well-known

comes

products, it' be¬
important for " the

highly

advertiser to exercise care in see¬

ing

to

that

it

public
to

the buying

have

reasonable

avoid

misunderstanding.

"Moreover,

we

opportunity

all

need

,

to =be

especially

alert to the business
opportunists who pervert and soil
the

good name of advertising

dishonest

copy

or

by
unconscionable

short cuts."

bringing
a

to
the
capacity

study

productive

up

Boe With H. Hentz

of

(Special

idle manpower, with special
reference to small business and

has

small

Hentz

and

and
then
from over-used

communities,

ment, replacing Arthur H. Webb

shifting,

who has

to

resigned fronq their firm.

we

can

resources

of

would .deceive

he listed as:

Savard, Hodgson & Co., Inc., have
announced

we

"we

maximum

which

which would seek to
take undue advantage of the peo¬
ple under the stress of emergency."

strength, Commissioner Mead told

George Murdock Heads

prevent "that type

mislead,

he

isson, Granbery, Marache & Co.;
Horse

to

tation

un¬

said,
"reinforce
by increasing the

un¬

Paying tribute to the role played

emerge from this gigantic under¬
Straley, Hugh W. Long taking without injury to our free
Company, Inc., Editor; Bawl enterprise system."
A.

Journal

on

the people in the integrity of busi¬
ness."

pgR First Boston Corp., Chairman,

street

be carried

ceiving or exploiting the consumer
or undermining the confidence of

together

B^seball-C.

and

is

principles of scrupulous prac¬
tices, to the exclusion of methods
which injure competition by de¬

for the
duration, small and large enter¬
Ripiey & Co., Inc.;
Russell Lea, Reynolds & Co.; Bawl prise will make an unbeatable
street Journal—William B. Chap- team. If this is done, we shall

John

all,

us

der

shall

we

the

nopoly.

long run trend

toward

serves

or allowed to drift,
clutches of private mo¬

pushed,

into

business along with large business.

various

sports and entertainment activitigg a^ thg outing.
These com-

doch,

of Canada

Boston 9, Mass.

the

competitive

private

keep

small business if

.

jMLilner, R^oss
•••■>.

NY

direct

to

any

*

INCORPORATED

WORTH 4-2400

"To

enterprise

.

CANADA

New York

business, which

Bergmann, R. W.

Fourteen committees have been

appointed

'5e+i?° dollar
i? concern)vigf^he Y£lty$iert
of the
CANADIAN BONDS
It

Charles L.

period of depression. Re- Pressprich & Co.

a

orders

underused

facilities

and

from

to

The

Financial

Chronicle)

CHICAGO, 111.—William A. Boe
become

Street.
of

associated

with

H.

Co., 120 South La Salle
He • was formerly cashier

&

Apgar, Daniels & Co.

yolume 173

Number 5000

.

The Commercial and Financial Chronicle

.

.

(1453)

goods and

Britain's Raw Material Crisis

a

sharp rise in the prices of such goods.

unemployment, it would

swell the ranks of the British Communist

By PAUL EINZIG

would
nist

Dr. Einzig calls attention to growing shortage of certain raw
materials

situation,
unless

'

^

and

Britain

in

large-scale

serious

unemployment

It

threatened

is

viewed

with

stockpiling.

uneasiness,

in

but

begun

the

^

find

to

themselves

short

lyst for Smith, Barney & Co., will
be guest speaker at the Philadel¬

than offset by the weakening

more

of the

phia Securities Association lunch¬

materials,

at

or

rate

any

to be held

eon

Walston,
members

Hoffman

Exchange,
Gann

Thomas

and

have

J.

registered

Corp.,

Thursday, April 12,

vestment

that

BEVERLY
HILLS,
Calif.
—
George D. Dufresne and Robert F.

un¬

distributors of in¬

securities,

Swinney
with

announces

and the latter at its office at 1370

come

associated

Broadway.

sales

with

the

have

Daniel

become

Reeves

&

affiliated

Co.,

398

South Beverly Drive, members of

William N. Bannard has be¬

principal office at 35 Wall Street

came to appear imminent.
The sulphur position in particular has become very
perturbing. Until a month or two ago hardly

Daniel Reeves

(Special to The Financial Chronicle)

25

New York City,

derwriters and

repre¬

sentatives, the former at the firm's

acute

Securities

Broad Street,

Mc-

associated

become
as

American

that Charles

announce

Costello

Stock

York

Join

American Securities

Goodwin,

&

of the New

with the firm

of

William N. Bannard Joins

Walston, Hoffman Adds

W.

shortages

required

Walter

*

lines

most

—

Hahn, Railroad Security Ana¬

1951.

industry had enough materials to carry on. In
recent
weeks,
however,
various
industries

,;

the

department.

firm's

New

Stock

York

and

Los

Angeles

Exchanges.

anybody outside the industries directly consulphur or sulphuric acid
plays a vital part in a wide variety of indus¬
tries.
Today, the British public is essentially

cerned realized that

:

sulphur-conscious.

THE NATIONAL CITY BANK OF NEW YORK

Any reference to sulphur
prominently in the press. It has
of general knowledge that,

is displayed
become

matter

a

Head

.should Britain exhaust her stocks of sulphur
and sulphuric acid, a large number of indus¬

i

towards

F.

American

strongest ally of the United States.

'

have

;

attitude

the

The

piles would be much

"

v

while, therefore, for

military strength represented by the increased stock¬

additional

LONDON, Eng.—Britain's raw material situation is viewed in
''^London with growing concern.
Until recently the danger of a
crisis through lack of essential materials was merely -a matter
of statistics.
The figures indicating the decline of stocks were
'

PHILADELPHIA, Pa.

might be well worth

'

To Hear W. F. Halm

Urges U. S. authorities to revise attitude toward stockpiling.

^

•

Plvla. Sees, Ass'n

Industrial unrest

infiltration.

or

authorities to reconsider their

supplies can be obtained from United States.
Says unemployment in Britain could cause dangerous discon¬
tent and may handicap ability to resist Communist infiltration.
some

party.

considerably weaken Britain's ability of resisting Commu¬

aggression

points out, despite improved coal

Together with

widespread discontent, and it would

cause

29

tries

would

have

to

to

standstill, no
matter how well supplied they may be in all
other essential materials.

l9

f

There

ing

-

by

Paul

Statement

but

a

handful

averting

in

of

is

experts

clubs.

now

Although

discussed

Britain

has

in

fuel

unable to make

use

a

of its coal allocation for lack of

some

key

raw

*\.

Indeed, the development of large-scale unemployment is freely
envisaged.
Until recently it was assumed by most people that
full employment has come to stay forever.
Anybody who ven¬
tured to express doubts on this point was denounced as a defeatist.

i

V"Today, members of Parliament representing industrial constituent
cies
r

are

bound
the

reminded every

future.

near

day that, unless action is taken, there is

be large-scale unemployment in their constituencies

to

Ministers with inside knowledge of

supply position, and with

responsibility for ensuring

a

rupted flow of essential materials
them.

,,

,

The

1

ment

only

ray

in

in

the overall
an

uninter-

offer very little comfort to

can

of Condition

,

-

Cash, Gold

of March 31, 1951

as

LIABILITIES

ASSETS

Due

and

Banks .$1,542,787,227 '

from

U. S. Government Obligations

,

Deposits

'

'

a

Other Federal

of

AO

State

.

plans of achieving economy in the use of materials which are at
present in short supply.
Industrial research departments are

a

Other Securities

,

,

.

,

Discounts

.

.

.

.

»

;

460,337,161

.

123 818 593

•

and

^•Real'Estate Loans
Acceptances

Stock

Ownership

of

,

.

.

.

32,295,578

.

7,800,000

,

International

Bank Premises

to

Other Assets

.

,

.

•

7,000,000

•

•

•

•

«

26,859,673

•

•

i

*

•

*

,»

«

•

•

Total

.

.

.

•

•

3,944,166

34,479,105

17,228,300

Foreign Central Banks

in

Transit

9,073,500

.

Branches

with

Reserves sor:

'

Unearned Discount

and

^

Other

...

.

20,626,042

.

.

11,685*,411

.

Interest, Taxes, Other Accrued

Expenses,
Dividend
Capital

•

.

$51,707,405

«

Unearned Income

Federal Reserve Bank

in

o

{In Foreign Currencies)

for

.

.

,

9,282,856

Securities

and

Customers' Liability

1,870,015,906

,

t

Portfolio

ances in

Due

Items
Loans

Krr

\Trv

Less:Own Accept-

cot ocn

49,594,967

.

Municipal Securities

and

Banking Corporation

prospects of obtaining some supplies from the
It is true, the government has laid its long-range

vrorc

ances

Obligations

.$5,167,682,639

f

.

Liability on Bills
Acceptand

1,466,370,819

.

of hope to be able to avert large-scale unemploy¬

the

lies

United States.

t

V

Agencies

V material.
"'

Branches Overseas

suc¬

crisis, the comfort derived from the
v improvement in the coal position is dimmed by fears that a situa",'tion might arise in the near future in which industry will be
-

53

Einzig

potential bottlenecks. The position regardexistence of which was ignored until re-

in Parliament,

press,
ceeded in

Dr.

the

all

the

a

other

are

materials

cently
if

come

Office: 55 Wall Street, New York

67 Branches in Greater New York

etc.

.

33,974,466

.

3,100,000

.

$124,000,000
(<6,200,000 Shares—$20 Par)
.

.

.

.

Surplus

.

.

;

,

Total

$5,600,106,946

.

136,000,000

.

Undivided Profits

319,485,783
$5,600,106,946

.

.

•

59,485,783

,

"

working
materials
to

overtime to devise new methods for producing such
or for inventing acceptable substitutes.
All this is bound

>

time, however, and long before these efforts can be expected to bear fruit many factories may have to stop work for
lack of some material, unless relief allocations are received from

„

'

Figures of Overseas Branches

are as

of March 25, 1951.

$467,688,744 of United States Government Obligations and $9,446,400 of other assets are deposited
to secure $407,110,351 of Public and Trust Deposits and for other purposes required or permitted by law.

take

(MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION)

the United States.

.

To most

after the

^

pendent
•*-;

people the realization that

termination of the
on

The improvement of the gold
of

Marshall

Aid

believed that at

-

States decides to

.

nearly six

years

Britain

able

once

more

to

stand

on

the

Britain will have to face

rescue

a

President

,

,

Howard C. Sheperd

CITY BANK FARMERS TRUST COMPANY

gravity.

,i:)

jiuol

.

Head ^Office: 22 William Street, New York

oi

(rioh .0

Affiliate

;

orifheNational City Bank of New York for

tor*;}('],; "W'ttut won idftiinistration of trust functions

&

What is worse, it is realized that the United States are more
reluctant to part with key materials than with
dollars, because

separate

—

—

—

Statement

current supplies are

requirements.

the Executive Committee

W. Randolph Burgess

her

The only difference is that this time
it is not dollars that are wanted, but
goods unobtainable in suffi¬
cient quantities outside the United States,
;
•:

Chairman,of

of the Board

;ition in 1950 and the termination
general satisfaction, since it was

is

Now it appears that unless the United
to

come

crisis of first-rate

Chairman

Wm. Gage Brady, Jr.

pc

to

rise

gave

last

ji., own feet economically.
.

even now,

in

Europe, Britain remains deAmerican support has caused bitter disappointment.
war

barely sufficient to meet American domestic
The only possible way of averting the crisis would

of Condition

as

of March 31, 1951

'

be if the United States

the

,

scarce

strategic

#

engaged

as

if they

were

release

to

stockpiling of
some

of

their

of such materials.

reserves

As far

to abstain from further

were

materials and

in urging the

ascertain here, British negotiators
Washington Administration to adopt this

course are encountered by American demand for a reduction of
the price of goods the current supply of which is controlled largely
by the British Commonwealth. The British answer to this demand

£.

Cash

and

Due

LIABILITIES

ASSETS

'

it is possible to

Banks

from

.

Agencies

of

.

$ 40,265,104

•

y

1,846,334

.

•

2,537,757

»

•

•

•

•

i

•

-•

t

.

$112,145,057

•

■

i

•

13,496,209

•

•

.

*

1,243,767

Reserves

Other Federal

.....

Deposits

81,361,889

•

,

.

•

U. S. Government Obligations.
Obligations

,.»

.

•

3,727,238

{Includes Reservefor Dividend $310,590)

*'

is that the only way in which producers of

rubber, tin, wool, etc.,
could be persuaded to accept less than the price justified on the
the relation between supply and demand would be by
offering them long-term contracts. Producers realize that the pres¬

,

-basis of
.

ent high prices will not last, and would be prepared to
accept
lower prices in return for guaranteed markets for a long period.

The American

complaints about excessive prices of imported
also by the answer that cotton and
other American products have for years been much higher com¬
raw

-

materials

are

countered

pared with prewar prices than rubber

or

tin.

Finally, it is argued

that, were it not for excessive American stockpiling

prices would not be nearly

as

-

tial materials

tail civilian

are

not

is

now




but

Loans

and

ensure

the execution of the

freely envisaged.

also -acute

cur-

This would

shortages of

mean

consumer

.

Advances

Real Estate Loans
Stock

in

,

and

.

.

Securities

Federal Reserve Bank

.

«.

«

Total

j

600,000
2 797 130

Bank Premises

Other Assets

•

..........

Capital

.

.

Surplus

.

.

.

,

$10,000,000

.

.

10,000,000

,

.

10,707,166

.

.

»

.

>

Undivided Profits

30,707,166

2,431,270

.$146,579,461

Total

.•'.

<•«

•

•

•

•

.

$146,579,461

$11,881,084 of United States Government'Obligations are deposited to secure
$1,835,949 of Public Deposits and for other purposes required or permitted by law.
(MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION)

essen-

The^ossibility of having to

production in order to

only unemployment

Municipal Securities

high.

running down.

rearmament program

and

purchases,

While the argument is proceeding the British stocks of
s-

State

Other Securities

Chairman

of the Board \

W. Randolph Burgess

President

'■■■'

Lindsay Bradford

(t.

30

The Commercial and Financial Chronicle

(1454)

.

.

Thursday, April 5, 1951

.

'Continued

Securities Salesman's Corner

The

Collin, Norton & Co. of Toledo,
New York Stock

exhibit at the

Exchange, had

an

"Toledo Blade"

Home

Show,

held

March

10

used

to

and Travel

during the week of
18, which might be

by other brokers and dealers

to

and dividend

earnings of the orig¬

inal

$100, for the years
1941
through 1950 was included in the
pamphlet, as well as in the dis¬
play.

by

attractive

an

the

booth, headed

pamphlet is one of the most
read I have ever seen. It
does not talk in terms of statistics

If

"Securities For
Public
Is
Welcome,"

caption,

Sate—The

placed

butcher's display
case.
In this case the prices of
meats and other foods were given
for the years 1941 and currently,
was

a

and beside the foods

tificate of

stock

a

cer¬

leading company was
displayed with 19411 prices and
today's market values also in¬
a

that

everyone

The

idea

vested
and

unin¬

page

at

title

"How To

for

used

was

which

the

carried

Buy A Larger In¬

come"—through ownership of in¬
vestment securities. This continued

theme that

not

only

that

can

investment

sound

produces

income

more

be used to provide better

living; but also if

you

"had $100

in

not

invest

1941

did

and

you

$100 in

a

share

stock

followed

the. average

in¬

crease in value, you would have
$175 in value plus the total of the
yearly dividends paid you."
A

chart showing
food

prices,
purchasing

the trend of retail

common
power

of

stock prices,
the dollar,

If it takes

a

butcher's

to do it. then all to the

is

Electric 8c Gas

Public Utilities until it became
It

electricity to

serves

a

was

a

cific

Company

subsidiary of General

independent

an

company

population of three-quarters of

in 23 counties of South Carolina—about half the

addition

In

to

the

a

in 1946.
million

of the state.

area

electric service the company

has bus and gas
business, each of the latter amounting to about 9% of total rev¬
enues.
In 1948 the company purchased from Commonwealth &
Southern for $10,200,000 cash all the common stock of South Caro¬
lina Power

Company and the two companies were merged about a
greatly increasing the size of the system. The two largest

year ago,

case

■t

understand but their husbands too.

cities in this area are Charleston and Columbia which, with their
suburbs, have estimated populations of 155,000 and 115,000, respectively; 290 other cities and communities are served.

The

;

I

un¬

am

another stock

the

on

whole New York Stock Exchange
obvious

where

cheaply

as

values

selling

are

in Northern Pacific

as

common.

During the depression Northern
Pacific

able to pay the inter¬

was

bonds

stock,

*

Share

on

the

Earnings

common

;;c:y

Dividends

Paid

■

1950__. _:_$o.70

j • •

1.36:

;

0.50 1

—

—

0.74

0.50;

0.80

Share

Earnings

1944—
1943—

y

i94i

—

to

buy

dends

the

on

stock

those years.

in

some

"

1

of
y

On its land are worthwhile de¬

posits of coal, iron ore and good
stands of timber. Some petroleum
natural- gas

and

its

on

being

are

land.

pro¬

Some

large

lie in Montana south of the

great Alberta oil fields and some

0.61

$0.67'

0.93

W:

0.28

day the Northern Pacific
ranked with

may

be

Atchison, Union Pa¬

cific and Southern Pacific with oil

0.87
—

issued

although the
Burlington paid little or no divi¬

areas

$0.21
—

on

duced

Paid

1942—

:

0.25'

.

Dividends

•

'•

as

/yy/yy-y,;

1945—

0.45 i

1.33

-

Years

i.

1948

stock have been

y;;

$0.60;

1949

1946—

Northern Pacific stock.
able to find

Burlington

Earnings and dividends

1947

.

cotton

are

Years

Kahlert

G.

lington against 2,479,826 shares of
Northern Pacific). At 115 bid that
one-third share of Burlington is
worth at.least $38 but you can
get it, plus 6,899 miles of Northern
Pacific Railway and 2,250,000 acres
of
land
all
for $33 by
buying

the

follows in the past decade:

h

William

est

manufacturing, cottonseed;; oil production,
stone quarrying, ice manufacturing, flour milling, lumber milling,
clay and concrete pipe;manufacturing, fertilizer manufacturing,
clay and. sand mining, metal alloy manufacturing, tobacco process¬
ing, wood preserving, clay and concrete brick manufacturing and
shipbuilding.
»

(830,179

important industries in the territory served by the

more

company

Pa¬

shares of Bur-

South Carolina Electric & Gas

good. This

something not only the wive?

Utility Securities

of

Northern

By OWEN ELY

Carolina

each

share

Public

South

Bur¬
com¬

for

mon

Why should there be
any mystery about securities when
all you have to do is to eliminate
technicalities and tell people your
story in a straight, simple man¬
ner.

than

of

lington

approach?

stock and the

slightly

one-third

lic Is Welcome." Isn't this the right

hand,'if

common

per

North¬

Pacific

ern

is the

of only $59 in

1951. On the other
invested that original

$33

owns

"Securities For Sale—The Pub¬

occasion

com¬

more

it,

special folder

same

is selling

share.

of the folder

would have purchasing power

A

this

you

Pacific

heavy expense.

On the back

will find that

you

3/26/51).

mon

depreciated

want to put idle
there is a place
be done without fuss,

can

quotation on
8c
Quincy

date Northern

caption, "Ladies are always
welcome at Collin, Norton & Co."
And it goes on, "Buying securities
is as simple as doing you market
shopping.
No
special
skill
or
knowledge is needed to own divi¬
dend producing securities.
There
is no mystery about the price of
stocks. They are priced each day
just the same as your butcher
prices his meat, based upon the
same law of supply and demand."

dicated.

the

of

As of the

if you

or a

stock,

common

to work

where it

bother,

that

is

have

a

Burlington

it is 115 bid and offered at 119 (as

there.

stressed

dollars

that

money

welcome

is

KAHLERT

will get

you

Chicago,

in 1920, willing to help
investment program, and

an

G.

Northern Pacific

The

plan

Security

WILLIAM

easily

founded

'\

Partner, Jamieson & Company,
St. Paul, Minn.

good advantage when such an
opportunity arises in their com¬ and professional lingo. It tells promunity. (Pictures of the exhibit pie that the firm of Collin,« Norton
appear on this page.—Editor.)
&
Co.
is
an
old
reliable
one,
In

2

page

I Like Best

By JOHN DUTTON

members of the

from

0.85

furnishing

important

an

revenues.

.

part

of
v

,

The

sharp fluctuations in earnings are due to the fact that the
company is largely hydro-electric, and greatly dependent on rain¬
fall in the area. Hydro capacity is 178,000 kw. and steam (at the
end of 1950) was 136,000 kwi Moreover,
only 45,000 of steam ca¬
pacity (including 22,500 installed last year) was modern and lowcost. A third difficulty has been that the
company sells power at
wholesale

other

to

utilities

resulted in erratic costs for
on

electric net income.
This

second

situation

is

under

contract.

These

factors

have

producing power, with, resulting effects

j
being

gradually

improved, however,

unit in plant Hagood went in last May

and

a

The
50,000 kw.

unit at
year.

.that plant is scheduled for completion in September, this
The company is beginning construction on a 75,000 kw.. steam

unit

in^the

Cblumbia-Aiken

Eventually the

FOR BROKERS AND DEALERS
LOS ANGELES

Western

SPOKANE

•

•

Markets

•

SALT

LAKE

in

service

late

in

1952.

normal

a

more

of the Saluda

in

DENVER

be

may get its costs under control and es¬
earning power for the common stock.
Last year's earnings reflected low water conditions which
probably carried through into early 1951. Inflow into the reservoir

Prompt Wire Service

To

to

company

tablish

area

CITY

hydro plant (which has about 85% of system hydro
capacity) was 30% below normal. This made it necessary to use
old steam units with very high production costs of 1.1 cent
per
kwh. (twice as much as at modern stations).
Unfortunately, even
•if normal water conditions prevail in 1951 some part of the water
will have to be used to rebuild storage at Saluda. However, better

than normal water would improve the earnings picture consider¬

ably.
Another earnings obstacle in 1950 was the redemption of the
5%'% preferred stock, forcing conversion into common stock.
The company is benefiting, of
course, by continued rapid
growth of industry in the Carolinas, Also the Atomic Energy Com¬
mission

has publicly announced the proposed construction of a
Hydrogen Plant in that area. While it is uncertain whether the

will supply any power for this project, nevertheless it
should prove a stimulus to the state economy.
company

Last

Members
and

50

BROADWAY

Tel.: WHitehall 3-6700




New

other

,

York

1915

Stock

'

"Exchange

revenue

Principal Exchanges

power.

NEW YORK

5,

the

earned operating income of only
estimated rate base (net plant account in¬

company

$3,622,000 against an
cluding intangibles, plus allowance for working capital) of about
$95 million—an indicated return of less than 4%. This would seem
to suggest that the company is entitled to rate relief,
particularly
on its industrial electric
sales, on which it averaged less than 1 cent

J. A. HOGLE & CO.
ESTABLISHED

year

N. Y.

Teletype NY 1-1856

per

tive in 1950.
ness

kwh. in 1949—less than the operating cost of some
on gas and transit business were not
very lqdfa-

Earnings

earned

As

Northern

only

Pacific

and

Burlington follows the same
policy, there is a double-acting
leverage building up assets back
Northern

of

Since
earned

Pacific

Northern

1933

$55

over

common.

Pacific

allowing for the deficit incurred
in 1938 of $1.74 per share. Divi¬
dends- have

share,

share to be

there
and
a

totaled

permitting

$7.87 per share
The stock is now on

quarterly basis which would

mean

a

return of 6%

rent

price

that

this

of

33.

the

on

It

is

a

cur¬

expected

year's earnings will

at

least equal those of last year and

that $1 extra may be

paid to bring

total

dividends up to $3

year

and

yield

a

for the
That

9%.

of

would still leave about 60% of $8
per

share earnings being ploughed

back.
Pennroad

Corp.

has

been

un¬

usually shrewd in making invest¬
ments

while
been

that
has

has

and

stantially

,

been

of

Northern

buying sub¬

selling other rails.
advised

an

by

a

Pacific
I have

good

source

independent oil company

been

accumulating

Northern

Pacific, but cannot verify this in¬
formation.
a

Northern

book value of

Pacific

$215 and

on

pects appeals to this writer

operations resulted in

per

earned

was

only about 2%

bus

per

ploughed back. In 1950

$2 paid.

50c

$10.50
$45

about

basis of

while

has

after

share

per

A rough estimate seems to indicate that the
gas busi¬

fair size deficit.

out

pays

small part of Its earnings

a

assets, earnings and

outstanding bargain.

has

the

pros¬
as

an

The Commercial and Financial Chronicle

Number 5000

Volume 173

Roadblocks of Unrealistic

(1455)

Mr. military force and to

a:M

$55

control

.

The indicated in-f. at least one-half of the biidget
is
about
$16.5
billion.'and taxation increases demanded
This'increase would bring Fed- by the President can be thade
feral taxes alone to 23% of the wholly unnecessary by a reasonto.al national income, the highest able reduction of needless - and

*

"devices "of

ESA

and

OPS, which
I have referred to.The Admin-

r

,

•

istration

we-go"

Columbus,

Co.,

Ga.

of economic controls, executive of
some phases of Federal
tax andTiscal policies. Says unwise taxes can be highly infla¬
tionary and a safe pay-as-you-go basis can be accomplished^
only by reducing non-essential government expenditures* Sees
some of new regulations, together with new taxation hampering .
incentives and weakening defense "program.
Holds public,
as investors, and not banks, should absorb government loans.

Reviewing the

new systems

large textile trade organization attacks

n
"di
*

•

'

■

.

of those who

i

steel

the

to

next

Ufider the Economic
tion Agency, is the

stand¬

the

^

point

of

ferise

•

This

is

ization

de-i

not

the

the

in

World

II

more

t

than

«v

ent

■

items.

These

tents

climates,

P.

Swift

of

ucts

for

in

use

to arctic

man

whether

say

uniforms,

first

'

Administration's

"we

the

gun

time

from

OPS

is in

Present

Federal

taxes

three

to

six

months

level

about

of

used

as

a

government.
Such
estimated to be

'

Loss of Private Incentives

If nonessential

$8

1948,

oj Condition

reference

billion

The true purpose of the Pre-

paredness Program is to strengthContinued on page 36

be

can

indicate that

as at

close of business March 31, 1951

only

wrong

logically,

II ESOURCES

It is

Cash and Due from Banks

but

,

patriotic people in the world

then

the

thousands

State and

lines

well

into

the

.

.

903,231,332.20

.

«

Mortgages

70,327,409.25

.

t

MunicipaLBonds

Other Securities

3,595,050.00

21,066,542.06

.

746,666,778.06

Loans, Bills Purchased and Bankers' Acceptances

Mortgages

'

^

Banking Houses
Other Real Estate

Customers'

.

>.

.

„

Equities

♦

.

quarter. -Only to the degree of
these sales was the industry covr
ered on its cotton requirements,
industry, and it is my belief that Any
important new business
their patriotic response will
be wOuld require the purchase of
of the same high quality that it more
cotton 'or the Tixing of

14,443,285.65

...

.

.

t.

.

Liability for Acceptances

:
.

.

people who - can
make
the
looms, the spinning frames and
the other equipment in the textile

1942.

in

lieve I
we

can

prices ;on

'

'

textile

For

voice

.

.

9,277,942.79
:

....

country may
in
less

cotton markets and the futures
exchanges, which the Bible tells

needs

essential

needs.

civilian

and
It

objective that no
American soldier, seaman or airour

shall

into

go

battle

insufficient equipment because
any

negligence
order

In
meet

this'
35

than

on

that

part.

threat

it

years,

our

our

thind

must

have

a

sound

economy and a high productive rate.
It has been pointed

the length of time it
rained to produce the Great
us

was

Flood.
From time to time additional
win the Battle of Korea and to changes will be needed in price
lose the Battle of Inflation, might schedules, in material allocations
mean
the ultimate defeat for a and in DO priority extensions.
free America.
With all the earnestness at my
out

other

on

occasions,

that

Thrown Into a System of

Controls

command, I wish to urge those
charged with these responsibili-

have ties, not to make decisions which
thrown into action a system of will
upset our economy and
controls, under the command of throw roadblocks in the way of
the Office of Defense Mobiliza- production.
It seems to me in
tion.
One arm of this command this hour of need, the path of
is the Defense Production Admin- production
should be smoothed
istration; the other arm is the rather than made more difficult.
Economic Stabilization Agency.
This country has demonstrated
Under the Defense Production that it can out-produce any other
Administration, which has many country in the world and, in so
subdivisions, controls have been doing, has become strong and
set
up
governing
the use of prosperous,
with
the
greatest
scarce
raw
materials; a system freedom and highest standard of
of priority
extensions has been living ever known.
Let's keep
established
in
connection
with this thought ever before us and
defense
orders;
stockpiling
of not so regiment and straitjacket
strategic materials is being ex- our economy that in the end our
standard of living will be lowfight

this

battle,

we

_

*Presidentiai address by Mr. Swift at
Convention of the
A™%!^an
Institute, White Sulphur

the

Manufacturers

Spdng^

.

.

Surplus

.

.

$50,390,000.00'

.

,.

r,

.

Undivided Profits

:

•

w. Va., March 29, 1951.




Reserves for Taxes, Unearned

Dividend

.

...

Cotton

.

.

.

10,487,690.05

...

5,952,470.52

•

Liability

Gash held
'Ji

•«;

t

Endorser

as

Collateral

as

JI! i

"i

''*

'•

.

*•'

.

Acceptances and Foreign Bills

or

■

•

Deposits.!}

on,

in Escrow

.

.

.

.

.

.

.

.

.

.

.

•

..

.

.

2,396,263,927.52

$2,592,811,449.83
United States Government and other securities carried at

public funds and trust deposits and for other

$160,892,766.!)5

purposes

as

required

pledged to

are

secure

permitted by law.

or

DIRECTORS

frederick

Chairman, New York arid Cuba
Mail Steamship
alvin

Chairman,
Products

lou r.

Director, Cluett Peabody & Co., Inc.

Director,

American Home

Chairman, Dana

Corporation

Chairman,
john
Lines

'Trust Committee

President, United Biscuit Company

erf America
john t.

"New

President, Emigrant

-

Industrial

Inc.

„

henry

BANKING
Member

Federal

OFFICES

c.

National Dairy

Corporation
von

el'm

President

,

Head Office: 55 Broad Street, New York
MORE/THAN^ 100

Home Insurance Co.

van bomel

Products

President, John P. Maguire &

Co.,

l. a.

President,

john p. macuire

Clyde Estate

IN

City

GREATER

NEW YORK

Deposit Insurance Corporation

•SAVE FOR YOUR INDEPENDENCE

-

■

v. smith

President,

Savings Bank

United States

Company

john gemmell, jr.

- •

York City

harold

madden

,v

h"arold c. richard

'

Board of Directors

& Lehigh

Chairman

kenneth f. maclell'an

m. franklin

President,

_

g. rabe

william

Vice-President

Executive

charles, a. dana

Co.

Coal

hallry'jc. kilpatrlfek

crandall

President, George A . Fuller Company

hoftace c. flan1gan

President, Scranlon

\

Simpson Thacher & Bartlett

Vide-President

J. patterson

george

Lambert Coinpany

oswald l. johnston

clouch

Administrative

Palmer'

r.

c.

john l. johnston

Corporation

charles c.

gretsch

Chairman, Lincoln Savings Bank

Co.

brush

g.

Committee

Executive

s. bloom

Mclaughlin

Chairman

President, Gerli & Co., Inc.

Chairman, The Sperry & Hutchinson Co.
edgar

george v.

paolino cerli

edwin j. beinecke

by bureaucratic controls.

But tne program to strengthen

•

7 13,531,053.16

.

ered and our freedom jeopardized
^

/

\

M,511,700.00

Payable April 15,1951

Outstanding Acceptances

v

13,839,285.23

.

.

.

.

.

151,225,323.40

$

31,391,323.40

Discount, Interest, etc.

"

' ?

V

69,444,000.00 /

,.

.

.

to

.

To

LIABILITIES

Capital

26, it took 40 days to reopen the

country's military

its

6,219,091.65

$2,592,811,449.88

con-

■

be-

pledge that'

the

the

man

already

with
of

I

will exert every effort to meet

must, be

cotton

tracted for.
But the machinery
of cotton marketing was paralyzed.
Very little spot cotton
could be bought, no prices could
be fixed on cotton previously
contracted for and no hedging of
any kind could be done either by
mills or shippers,
After they were closed on Jan.

management

261,024.84:

v.

....

Accrued Interest and Other Resources

third

14,284,044.74

......

of

was

52,638,44Z£6_.

-

.'

Stock of Federal Reserve Bank

quarter;for the most part, and for
some

:

.

.

U. S. Government Insured F. H. A.

*

more

;v

,

.

750,800,501.08

$

>

U. S. Government Securities
i

led
are

by contributjng directly to price increases.
others are indirectly inflationary
by discouraging production
and so reducing
the supply of
available goods.

are

.The figures

saved.

Condensed Statement

in

-■

of

econo-

TRUST COMPANY

horrors

hundreds

been

taxes

no

about $9 billion.

billion,

are

all

MANUFACTURERS

.

•

tures of the
expenditures

"pay-as-

$71

of

excess

that

anti-inflationary
and
help
to
keep prices down.
Nothing could

we-go" budget for the next fiscal expenditures are cut back to the
year

have

People

think

they can
whole

our

which

standard for price-making.
not

be

to

are

to

success,

of a 'becomes wholly unreasonable
complete and total war, but we When the long-time interval bedo know that for the troops in tween
sales and deliveries i$
Korfea that war is already a real- Tilled with rapidly rising rnateity.
Our task—4he task of all of rial and labor costs.
v
us —is
to
produce
the
goods
Evgn if rising costs had not
necessary to win the limited war occurred
in such ^degree as to
in which we are now engaged and make our first ceiling prices un¬
t
to insure our victory in any fu- realistic, the transaction of new
ture war. During the years since business in any considerable vol-r
i
World War II, the textile industry ume would Still have been imhas replaced much of its worn- possible.
out equipment and has streamOn Jan. 26, the industry was
lined its activities.
There are no already sold through the "second

into

plunged

untold

economy

gram
gram only by reducing to the
only oy reducing to the
utmost the nonessentisl expendi-

The Pay-As-We-Go Budget
The

will

.^ht of these facts, it is highly inflationary

*n

/,

•

do

apparent that we can safely pay
as we £° on the emergency pro-

certain

conditions,

■

carefully devised,
damage to

are

futures

cotton

logically be

this

at

say

*rLt

or

y *

-1

best

increases

tax

nation has be further from the truth.
prospered under a tax burSome taxes, when extended
den greater than 25%.
beyond a c ert a in-'point, are

thingsi and permit its aconly
under* certain,

well-defined

world's

spending

some

advance of delivery, it is hard to
see how a delivery period can

tropical

and towels.

covers

No

Geo.

ranged

from

to

exchanges,
stagnated the spot markets, and
virtually
stopped
the
sales
of
cotton
goods.
For -an industry
which prices and sells its prod¬

types

of
t

other

relationship

the

rnists reveals that

But

our

_

differ¬

wasteful

have to be made and unless they

counterpart of the

act

the

War

y' 11,000

its

industry was
punch which stabil¬
ized us in a horizontal position
for many
weeks.
The Ceiling
Price Regulation of Jan. 25 closed

forces

The

knockout

a

fur¬

nished

new

directly affected

textile

armed

•t

The

that

industry

Wage. Stabil-

notable

known.

fever

OPA.

old

we

realize

the

tion,

tatemen't

when

with

and the Office of Price Stabiliza¬

a

surpri sing
s

Stabiliza-

Board, which has -not yet

functioned

needs.

in

of

one

■■■u.

,

it

ceptance

-

hpph
rpstHpfpH
been restricted anH rnnsnmntinn
and consumption
credit has been tightened,

government

percentage

happens that this principle is not the only one involved
in
the financial
policy of our
government.
We should look at
it

^

inHir-ntpH
indicated
industry,
the- textile industry is first from
haup
have

trovprnmpnt

ir
our

that

a "pay-asthe emersomething
it

is

billion.

psndedj building operutions hsve

3X6

which

But

•

'

..

.

'

.

high in

Some

asking for
duririg

policy

highest figure reached in 'World
didn't do prior to the emergency. War II was 18%.
With state and
This change of attitude, though local taxes added to the proposed
belated, is most welcome and I Federal taxes, the total would
am
sure
that
all good
citizens amount to $90 billion, which is
agree with it in principle since one-third of the national income,
our present national debt is $260
A recent history of taxation by

President, American Cotton Manufacturers institute

■rt".

is

gency,

By GEORGE P. SWIFT*
President, Muscogee Manufacturing

billion.

JWfftHldrf^tends far beyond the crease

.

•"

31

BUY U. S. SAVINGS BONDS"

32

(1456)

The Commercial and Financial
Chronicle

ally

considered

4'The

thing [inflation] the Administration is
striving to check was not merely sponsored by it
but in large
part created by it. The sum of several

lines.
Aside from these burdens in the

freight end of the business, New
York Central has a large stake in
passenger business, including sub¬

New York Central
Bulls

stantial

New York Central got
shock with the re-

on

freight

its average haul

—

commuter

services.

Administration policies has resulted in 'an unbeat¬
able mechanism of built-in
inflation'—the apt and
vivid phrase is in a recent
report by a

This

less

is

aiso is very expensive to handle,
considerably it js doubtful if commuter traffic
earnings for smaller Nickel Plate.
Obviously can ever be made to
pay its own
February and the first two months terminal handling costs are just as
way even on an out-of-pocket exof 1951.
It had been taken for high for a
shipment moving 50 pense basis. With this
background,
granted
that
February
results miles as for a shipment moving
most railroad analysts find it exwould be poor. The road is one of 200
miles
and
producing four tremely difficult to work
up any
the largest in the country, with times as much
revenue.
Aggra- enthusiasm for the
longer term
particularly extensive terminal op- vating
this
situation,
terminal outlook for New
York
Central
another

lease

week

erations and

natural

was

strikes

of

that

of

the

sional

of

substantial passen-

a

commuter

ger

than

severe

last

business.

to

Thus

expect

railway

that

costs

the

employees

have

rapid

it

rate

have

in

increased

years

recent

haul

road

roads

at

in

have

costs.

found

it

a

more

stpck.

than

Also, railmuch

On

stock

few

a

quite
the

earlier

when

such

retarding influence.

a

coal

strikes

senger

receipts

slightly,
Overall,

made

the promises
specific and glaring. He got the
gratitude, conspicuously from the farm vote, and he

off

expanded

gross

027 from

the level of

a

Continued

from

only

$6,632,-

page

"Policies and attitudes of the
Truman Adminis¬
tration that
gave advantage to farmers and labor
have been
the
dynamic

9

Operations and
The Home Mortgage
Industry

702,260 in transportation costs. The
transportation ratio, consistently a
sore
spot in the Central picture,
jurnped to 54.9% compared with

5?*®ln^e^Uuly

ltself, had not been

?h}ch: *n

As

sustained
million

net

ior

From

result, the

a

a

tne

company

a

Joss of over $ 0
monin.

as a

almost 22%

up

a

atiru?
Thc

of

slower

a

ratio

rise

was

in

nearly

^

net

oneratiru?

$2.5

million

accruals

income

fully
of

There

oner-

income

however

offset

by

non-operating
left

was

onlv

a

modest'net

income of $716,000 for
opening month of the yesr.

the

For

the

full

two

months'

through February
a

then

of™ 9^363,132.'

net loss

period

there

was

This

was

just about double the net loss
tained

in

the

first

two

sus-

months

of 1950.

for

defense
the

connection

year

nofnts

three

cut

just-about

was

lower

and the

oace

in

areas

as

the

to

The new title would be avail"
able only in critical defense housing areas designated by the Presi-

The

And

We

the

best

official

on

dent as having, or about to have
a substantial shortage of housing
*br h^miglant w°rkers at.defense
Plants or installations. Furthermore> the maximum number of
dwelling units to be insured in
£^ch locality by the FHA. under
this title would be programmed by
fbe Administrator of the Housing
and Home Finance Agency in conformity with the need of speciiic

>■

suspect that they

family

uneasy

we

as

r""'0

we

can

the

and current facts.

emergency
be expected to work
hardships
all peacetime

enterprise,

The Stock Maiket

in-

diat.e impact of government
spend¬
ing has been over-estimated.

(4)

Further,

many of the
which were

signals

ger

vital to defense and national
be

a

Fot this

casualty

of

it cannot

reason

the

but r3ther will find

pro-

emergency,
it necessary

to convert its efforts to
producing
in accordance with the needs of
the emergency,

defense activities in the locality.

Inasmuch

science, let
each

the

is

ours

inexact

an

of

me

these

assets

generalizations—

and

liabilities,

as

it

were.

(1)

Assets

Psychologically, the

nation

been

ally a high cost producer. Elimi¬
nating the war years, when pas¬
senger and allied services showed

activities.

handsome
normal

is tradition-

highest

among

carriers.

the major Class I

Similarly, its profit

mar-

gin is consistently among the lowest in the
industry. There are a
number
cost

of

of

reasons

operation

Central.

To

for
of

the

New

high
York

considerable degree
contributory factors are inherent in the nature of the busi-

transacted and the territory

moredor " essarDermanfnTenatLe
permanent nature.

mo

e

or

less

Moreover, developments since

the

end of the World War II
have ag¬
gravated many of these weak¬
nesses.

New

+

give flexibility to the proprovision is made for the

insurance
and

one-

well

as

of

mortgages

on

both

two-family structures,
multi-family projects,

as

Terms for such insured mortgages
WOuld not exceed 90% of FHA

by presenting the cuse for
optimism. All you need
following suggestions for your do to
discover that we're tired of
consideration:
being emotionally upset, is com¬
(1)
that special
scrutiny be pare the tone of the 1949 and
given to need, particularly in the 1950
year-end annual business re¬
lower price
and
rental
with
ranges; views
those
of

(2) that location is of increasing

imVnnrtanr^

Sv!'

.

mum

jng

nrovicled'ih^maxi-iven ato

mortgage amounts, depend-

upon

number

of

rooms,

jnew

ier*a*s>

etc.

v

study

methods

be

insurance

York

Central
Akn

t

i

guostantial

volume

1

of

is

a

large

it earriec

we

a

it carries a
shoit haul

Specialists in

ma-

examine

our

SECURITIES
at all Times

more

J X

C

O

vAJAjMx

25 Broad Street

A T I A

New York 4, N. Y.

Telephone BOwling Green 9-6400
Members Nat'l Assn. Securities
Dealers, Inc.




help

and

income

services

spent for

that

aren't

such

looking

_

at 20 years.

ments

owner-occupancy
of

Section

203

require-

would

expresses an

intent to occupy the
property upon

_

iJy plot in Greenwood.

He

had

been in poor health for some
time.
Mr. Loyd at one time was Secre.

,

,,

i

of tbe

be

modified for. the benefit of mortgagors entering into
military service subsequent to the
filing of the
mortgage
insurance
application
when the
mortgagor

the

dollar

Alfred E. Loyd

or

213 would be fixed

or

™

Security

In the past
^^lte

M

a

new,

set.

You're

multi-billion

industry.

(3) Contrary to the thought
often

is

a

expressed

'30s,

Even if we're not

economy.

ufacturers

children's
but

in the

so

probably

marked ; the
in which the
gov¬

era

an

of

baby

clothes,

benefit

from

man¬

carriages

we

the

can't
fact

or

help
that

the

population

has

grown

from

Alfred E. Loyd & Co., his firm

130

million

150

million

peo¬

specializing in making

ple in the past decade.

?*' Hn

*

J"

a

market

in the stocks of country banks.

crease is

to

era

of

a

man¬

aged economy — and this means
that the Administration in
power
will take an aggressive
part in at¬

tempting to shape business trends.
The

direction

in

which

the

Ad¬

ministration will apply its efforts
is obvious—for the
government
has

vested interest in the main¬
of

a

tenance
P

for

prosperity.

Thus, the

politics has injected

This in¬

bigger than that

experi¬

new

some¬

into

the

(5) Last July, New York State
followed the lead of Massachu¬

to

And

adopted
which

the
in

Prudent

effect

per¬

to 35% of a trust fund
invested in common stocks.

up

be

ance

bill
permitting life insur¬
companies chartered in New
a

York

State

mated

to

$1.5

stocks

purchase

billion

of

esti¬

an

common

recently was signed
Dewey. The next

Governor
vision

in

the

by
re¬

law

probably will
apply to the savings banks—for
they are on record as favoring the
investment of a small portion of
their
assets
in common
stocks.
All of which
points to one conclu¬
sion: The current and

prospective
demand for securities
is, and will
be, in good part from semi-per¬
manent

buyers—contrary to the
bull market of the '20s
which fed
on

ours

growing rather than mature

o

York

J*®1** Association
kj*smess

at

.::

the

worse,

solely

and

television

which

capitalize.

better

what happened in business.

Rule

your

on

was
a
passive onlooker
industrial scene—when its
activities were dependent

Man

for

the

short, there's

the

setts

find

new

ernment

to

mits

on

you.

Alfred E. Loyd passed
family unit. Also the
away
debentures under Section March 8 and is buried in the famas

the

necessities, confidence is a very
important factor in the business

per

term of

The

JftJt&mini &

FHA's role is to

Section 207 would be amended
to permit up to
$8,100 per unit for

207 as well
Selected Situations

national

our

goods

things as a detergent
dishes, plastic curtains,
Title VI11 for mortages on mili~
I have confidence in the home fluorescent
lighting,
aluminum
tary housing would be extended mortgage industry of this
shelves, copper - bottomed
country spice
from July 1, 1951 to
July 1, 1953, —that you can and will
meet the pots and pans, etc. None of these
and amended to include
housing new emergency with which we were made before the war. Then
serving Atomic Energy Commis- are faced,
go into the living room and turn

rooms

Deal
of

a

as

economic equation.

or-

are, I believe, important
insuring authority under guideposts for the present.

projects averaging four

New
end

can

For

percentage

a

authoriza-

sion installations.

RAILROAD

large

so

tion is also provided.

FHA

(4)

big

of demand

thing permanently

(2) This is a vigorous country
ganizations with the view of in—and our inventive
creasing efficiency;
genius, which
is
constantly
developing
new
The mortSage ceilings would be
(5) that lending practices which products that
create
new
busi¬
intended to provide an incentive encourage advance
buying will nesses, can
really flower when it
to build accommodations within produce
unnecessary
strain
on
has half a chance. Take a look in
the paying capacities of those in- production and
should be avoided.
your kitchen and you'll probably
tended to be served.
Additional

industry

equation.

and

"

(4) *.that

With

years.

of
'

appraised value but certain1 f lexi-continued
bilitv would be

scale

new

means

In

previous

These

terminal carrier
u

To
gram,

a

the

ness

and

profits contrasted with

heavy losses, its transpor-

tation ratio is
generally one of the

a

We're living in

The program is
through so much the
primarily deDespite the fact that we cannot
past 20 years that the mere fact
signed to produce rental housing know what new
conditions and
we've started the second half
priority of occupancy would circumstances are
of
coming, I should the 20th
be given to workers in defense
Century can be the ex¬
like to conclude

Central

market

State of Illinois.

upon

The

Recommendations to Lenders

as

history, and

present

as

10-year period

consumer

dan¬

give you the back¬
reasoning which led to

ground

has

New York

enced in any other
in our

eluding the normal production of at previous bull
market tops have
housing. But housing, in addition reared their
ugly heads in the
to being a peacetime industry, is past few months.
duction.

of the

some

moments, too.

A Balance Sheet of

do

can

the basis of past experi-

on

v-v'<-A

giving

are

Continued from first
page

be

can

A Period of national
can

we

certainly facts for the American people

'

going to be

logically

as

inflation;

amendnot

or

us.

are

ponder.

coming months
bring forth, and to make our

may

ence

of

what

plans

defense.

law
not

of that.

about

national

proposed

are

any

is to think

of

with

for

sure

an

production

ahead

easy

SUppiement to existing FHA

the

become

times

privately-owned housing required

maintenance^utlays'wer^also^p*''
but at

ments

f0r

incentive

standpoint

from

Whether

pian 0f mortgage in-

programs

These
"■

ice.

Title IX would provide

the

mechanism."—Mark Sullivan.

his discharge from military serv-

pro-

privately-financed defense housing. This would be used

the opening month of the year had
shown some improvement.
Gross
was

new

new

surance

single

operating

an

A

satisfactory

a

Maintenance outlays were

also up.

Housing Act that have been
posed.

of

parts

FHA's Current

year ago.

Some 86% of this increase in gross
was absorbed by the rise of
$5,-

month.

the election.

won

as were express revenues.

were

accepting

flagrantly
under obliga¬

still

were

Pas¬

is

now

destroy the

party, by strong
implication he promised those groups occasion for
more
gratitude, and in his campaign speeches

*

higher also handles a substantial volume the characteristics of the road's
a
year
1- c- !• freight, which is gener- performance during World War II.

substantially
like period

.

people seek anxiously to learn

reminded farmers and labor of
being
tion of gratitude to the
Democratic

more

-

in

.

Congres¬
O'Mahoney

Senator

depended upon politically. In his speech
the Presidential nomination in
1948 he

friends,

Largely this is based on the hopes
road hard, difficult to offset mounting termithat under a defense
economy the
impact of these adverse nal
costs
through technological large
passenger service deficits of
developments on earnings had not, advances than it is to offset the
recent years may
be eliminated
however, been foreseen.
higher road
haul
and
mainte- and
perhaps even be changed into
Freight revenues for the month Qance costs.
New York Central sizable profits. This was one of
were

.

by

whether Mr. Truman will be able to

full

than

Wyoming.

headed

Frankenstein monster he created. To do so he must
go counter to groups he in the
past has favored and

February had hit the

The

committee

"What the

speculative
however,
the

basis,
quite

has

of

purely

a

temporary

Thursday, April 5, 195^

Facts to Ponder

relatively large amount
density branch and feeder

a

of low

.

unprofitable

as

business by the railroads, and op¬
erates

.

.

margin speculation.

(6)

In

going,
another

addition

1950

saw

to

the

the

fore¬

creation

important type of

of

fidu¬

ciary demand for securities: The
investment of pension plan funds.
many
pension plans are

While

funded with insurance
companies,
multi-billion
stream
of
new
capital must still be invested each
a

year. Contrast this demand
poten¬
tial with the fact that the
market

yalue of all

common

stocks listed

Volume 173

.

.

.

The Commercial and Financial Chronicle

the New York Stock Exchange

on
,

Number 5000

currently

-

is

about

(3) My skepticism of the stimu¬
lus which will

billion.

$100

only part of this potential sup¬
ply is available—witness the fact
that last year only 23%
of the
listed

hands.

The

(7)

community

financial

itself has done

an

excellent job of

repopularizing the common stock

last

'idea—helped

by man¬

year

concessions to

tempt the profes¬ real

sional buyer.

first

<

.

agement's desire to spread owner¬

ship via stock split-ups. When I
speak of the financial community,
I have in mind not only the ag¬

advertising program of
which immediately follows civil¬
brokerage firms, but more
ian production cutbacks enforced
particularly the excellent distri¬
bution job done by the so-called by material allocations or demand
determinants; D—I doubt that the
open-end investment trusts and
government can spend money as
their - dealers.
They've brought
Wall Street to Main Street, and in rapidly as most people anticipate;
gressive

.many

.

Quantitatively,

make pleasant reading, and
capital goods industries still
possess
important
elements
of
strength. Lastly, the high grade
bond market has been through
a
major readjustment, and sta¬
bility seems in prospect for the
time being.

retary-Treasurer of the club,

the

the

'

The New York Curb Exchange
Employee^ Quarter Century Club,
organized in 1946, is composed of
Curb employees who have been
on

Cinti.

a

forces making for
temporary, essentially selective
readjustment—and the threat of

ministrative
York

Exchange,

something

has been

Even if a
is
to
be

Curb

the

on

nicipal

Bond Dealers Group of
Cincinnati will hold its annual

spring party at the Maketewah
Country Club on May 25. This
outing will be preceded by a cock-'
tail party and dinner for the out-

who

and

Outing

CINCINNATI, Ohio—The Mu¬

division of the New

conclusion

Municipal

Bond Men's

between those

more severe.

the staff for 25 years or longer.

Hengeveld Pres. of Curb
Quarter Century Club
Christopher Hengeveld, Jr., VicePresident in charge of the ad¬

favorable

33

liquidation.
Thirdly, most with the Exchange since 1921, He
quarter earnings statements has served several terms as Sec¬

will

Surplus—Or Deficit?

liabilities
"bail" everyone out is a little too fall short of the assets. Qualita¬
pat—a little too widely held—to tively, however, I believe they
be accepted without reservation; have greater bearing on the inter¬
B—I've become a little skeptical mediate price trend. In my book,
of the commonly accepted theory there's a deficit on the scale of
that a perpetual motion machine pros and cons—which means that
has been developed; C—I wonder the first half 1951 average highs,
if the Administration has the abil¬ but not the lows, already have
If nothing else,
ity to bridge this transition period been recorded.
without difficulty—to bring about vve're in a period of indecision
an
accelerating defense program during which the die will be cast

changed

actually

from

defense spending stems from the
following considerations: A—The
theory that the government will

And

shares

be Obtained

(1457)

staff of the Ex¬

change since March 14, 1921, has

..

*

forthcoming, it will take 60 to 90 been ^elected President of the Em¬
there's a vast difference between days before today's uncertainties ployees Quarter Century Club, it of-town guests on May 24.
the process last year raised several
military spending and military disappear—or become an estab¬ was announced following the an¬
hundred
million
which
was
meeting.
Mr.
Hengeveld,
appropriations. Even now, nine lished fact. And aggressive spec¬ nual
New York Stock Exchange
directly invested in the market.
months after Korea, defense ex¬ ulation for the rise is not likely who
was
Vice-President of the
(8) As I visit different sections
to flower in this type of news club last
penditures are running at only
year, succeeds Edwin J.
Weekly Firm Changes
/
of the country, I'm at times sur¬
background.
a $24 billion annual rate—and it
O'Meara, who is director of floor
The New York Stock Exchange
prised by the financial naivete of will take another nine months
vYet, I can visualize a trading supervision.
has announced the following firm
people one would expect to be before the rate doubles
again. The rally this spring during which in¬
Cornelius E. Sheridan, Assistant changes:
;
common
stock minded. Further,
dividual issues—but not the av¬ Secretary of the'New York Curb
major impact of our defense pro¬
I'm at times surprised by the large
Gayle L. Young will retire from
gram won't
be felt until early erages—make new highs: For one Exchange Securities Clearing
numbers of wealthy people wh-1
partnership, in Jacquin, Stanley &
195^. What's going to happen in thing, the turn in the tide now
Corp., has been elected Vice-Pres¬ Co, on April 15.
don't own common stocks—all of
the intervening months when the is out in the open—which means ident of the club. Joseph R. Mayer,
which points to a huge untapped
Charles
G.
Raible
withdrew
it's being reflected in the price Director of the finance
economy is more or less on its
depart¬
market. In this connection, I note
from limited partnershp in Preslevel. Secondly, the latent bullish
own?
ment, has been reelected Secre¬
-

that

there

are

E

bond maturities

in amount of $1.5 billion

(4) In this connection, one point
emphasis:
Consumer

in 1951,

deserves

$3.9 billion in 1952, $5.4 billion in
1953 and $6 billion in

durable

1954.

the

I

interpret Mobilization Di¬
Wilson's
report
to
the
President on the progress of our
defense program, it takes the edge
off my premise that a soft goods
and

consumer

durable

In

that it will take

cott & Co., on April 1.

tary-Treasurer of the organization.
Mr.

more

is\

Hengeveld

James T.

third

the

Whipple retired from

ranking employee of the Exchange partnership in Tuller,
unfavorable
news
have yet seen to force in terms of servicle, having been Ferris on March 31.

we

suits, shoes and
being produced
variety of facts. Key

a

now

controls have been

Crary

&

The

amended and

eased from time to

time; industry

been

has
:

of

balance

cleaners, refrigerators,

items

reflects

anyone who attempts to
between
the lines of Mr.

report will find ample
support for the belief that the
factors which led to the national

means

asset side

sets,

other

opinion,
read

has

year

television

my

Wilson's

sheet

the

market's

aggressively"

of vacuum

goods re¬

starting.

is

since

on

stock

the

probably will continue)

(and

rector

adjustment

production

the

of

of

been
than
at,
a
relatively high level. In turn,
the surprisingly large quantities

The Liabilities
As

goods

turn

factors- cited,

utilize

able

to

substitute

Obviously, if the

New York Trust

successfully

materials,
consumer

etc.
"gets

the wind up" and realizes that
shortgages are more imaginary
spending spree of the past eight
than real, it will importantly in¬
months no longer exist. But ours
fluence his current buying and
is an inexact science
and you
spending habits. In other words, if
may have gotten a different im¬

.
■

•.*
.

»

Company
•

..

•

.

'

• •

•

"

.

■

■'

100 BROADWAY

—

the

pression

consumer

TEN ROCKEFELLER PLAZA

(1) Contrary to President Tru¬
man's earlier forecast of a $2.7
billion

deficit

in

fiscal

the

year

ending next June, Secretary Sny¬
der now admits there's a good

possibility the nation will end
with

up

surplus of $3 billion. Ex¬
planation is higher receipts and
a

slightly

lower expenditures. At
any
rate—and remember we're
comparing pre- and post-Korea—
combined Air Force, Army and
Navy expenditures have only in¬
creased $2.7 billion thus far in the
1951 fiscal year. All of which, in
my
opinion, is a far cry from
popular opinion and belief that
the government budget is widely
inflationary; if anything, it's tem¬
porarily
deflationary.
Further¬
more, even the estimated 1952 fis¬
cal year deficit of $16.5 billion—
which probably is much too high

with deficits of $51.4
billion and $53.9 billion in 1944

—compares

and

1945.

(2) The President's*budget mes¬
anticipated military expen¬
ditures of $41.4 billion in the next
sage

DIRECTORS

Apropos the foregoing, I'd
like to ask another question: Have
(5)

shopping lately? Chances
you'll find retailers' shelves
extremely well stocked—for in¬
about 20%

year

JOHN E. BIERWIRTH
President, National Distillers
Products Corporation
STEPHEN C. CLARK
The Clark Estates, Inc.
Vice President

means

that

one

cushion

rather

-

than,

a

stimulus?




price trend—and it will take real

295,956,842.12

Customers4JLiabiBtyTor Acceptances*^.**
Interest Receivable and Other Assets

New York

avi

.

a*<?r

,860,679.30
2,817,485.29

•

$826,359,475.53

Presider/t
The National Sugar Refining Co.
B. BREWSTER JENNINGS

President

Socony-Vacuum Oil Co., Inc.
J. SPENCER LOVE
Chairman of the Board
Burlington Mills Corporation

LIABILITIES

$15,000,000.00

40,000,000.00

Undivided Profits

CHARLES J. NOURSE

Capital
Surplus

ADRIAN M. MASSIE
Executive Vice President

CHARLES S. McVEIGH
Morris & McVeigh

13,892,215.76

$

68,892,215.76

Winthrop, Stimson, Putnam

can't eval¬

ending July,
1951 and actual expenditures of uate the stock market in terms of
the same numbers which were
$12.3 billion in the 1950 fiscal
used in the past. To put it sim¬
year. But what does all this mean
at the current level of security ply, not only has a certain amount
of
inflation
been
permanently
prices, industrial production and
frozen into the price level, but
America's capacity to produce?
industry 'has spent such huge
Don't forget, we're talking about
sums
for
plant and equipment
a 3.5 million army whereas at the
that most stocks today are statis¬
World War II peak 12.3 million
tically better value than at the
men and women were under arms.
lower dollar prices of past years.
Even the projected 1952 level of
defense spending is less than half Yet, the market itself tells us that
the bull case is on the defensive;
the. $83.8 billion spent in 1944 or
public interest has dwindled —
the.,$84.6: billion spent in 1945.
many of the new speculators are
Thus, I'd like to ask you a ques¬
"locked .in"
with
losses —? thq
tion: Aren't yye more likely to
find this form of pump priming a business news is following, the
year

17,190,256.31

HORACE HAVEMEYER, Jr.

has

which

fiscal

1,650,000.00

Other Bonds and Securities

WILLIAM HALE HARKNESS

started.

present

260,786,195.61

Loans and Discounts

FRANCIS B. DAVIS, Jr.
New York

(6) No question about it, we're
living in an era of distortions^-

year

$245,098,016.90

Government Obligations....

r

American Brake Shoe Company

was

ending
July,
1952
against close to $21 billion in the

fiscal

United States

Stock of Federal Reserve Bank

RALPH S. DAMON
President
Trans World Airlines, Inc.

familiar chain

cutbacks

Cash and Due from Banks

WILLIAM F. CUTLER

reaction of order cancellations and

manufacturing

ASSETS

Root, Ballantine, Harlan,
Bushby & Palmer

disappointing — that there are
signs of a retail sales slump.
the

•

Colt's Manufacturing Company

ago.

means

'

^TATEMENT OF CONDITION

ARTHUR A. BALLANTINE

ahead of

fact that Easter sales volume

Which

IT**]

SEVENTH AVENUE AND 39TH STREET

•

March 31, 1951

GRAHAM H. ANTHONY
Chairman of the Board

Equally - important,
outstanding orders are up sharply.
This is where the "pinch" is com¬
ing, for although sales are still re¬
cording respectable (although less
impressive) increases over a year
ago, retailers are now keeping a
weather eye on forward orders. If
the public were willing to continue
to mortgage the future to buy
goods, the inventory-order situation
eventually would correct itself
without too many adverse reper¬
cussions. But the growing number
of advertisements in the daily
newspapers are illustrative of the
a

CONDENSED

New York

are,

are

MADISON AVENUE AND 40TH STREET

MALCOLM P. ALDRICH

you gone

ventories

.

MADISON AVENUE AND 5 2ND STREET

satisfied.

flation cycle.

•

loses his avid desire

from
the
newspaper
to own tangible goods, he may
headlines. Hence, I'd like to spell
well retire from the retail market
out the background which sug¬
for the time being inasmuch as
gests that'»we are witnessing at
his wants have been pretty well
least a temporary halt to the in¬

&

Roberts

General Reserve

RICHARD K. PAYNTER, Jr.
Financial Vice President
New York Life
Insurance Company
SETON PORTER
Chairman of the Board, National
Distillers Products Corporation

ROBERT C. REAM
Chairman of the Board

Dividend

Payable April 2, 1951..........

Accrued Taxes and Other Liabilities,.....
..............................

MORRIS SAYRE

5,803,317.85

746,257,424.92
$826,359,475.53

President
.

600,000.00

Acceptances3,110,015.05

Deposits..

American Re-Insurance Co.

1,696,501.95

Corn Products Refining Co.

CHARLES J. STEWART
President

United States Government obligations-carried at $$8,885,538.19

WALTER N. STILLMAN

inTdfexfclotfe state¬

pledged to secure United States Government deposits of
Zi345".204i47
and other public and trust deposits and for other purposes required by law. »
ment are

Stillman, Maynard & Co.
VANDERBILT WEBB
Patterson. Belknap & Webb

f

•-

Member Federal Deposit Insurance Corporation

34

The Commercial and Financial Chronicle

(1458)

Continued from

first

ing investment in mortgages, and

York

(3) the trend of interest rates.

page

get some very interesting statistics

State,

Effect

1.

Impact of New Monetary
Policy on Mortgage Market
(c) the

bonds, unlike the old
cannot be sold in the market

ones,

and

new

they cannot be redeemed for

cash

before

they mature.
They
exchanged for new five-

be

can

notes bearing lVz%

year

and the

will be marketable.

notes

The procedure
lated

that

so

has been

calcu¬

in

flationary

98.

l

men

believe

apparently
will be big

penalty

enough to keep, bondholders from

selling and thus freeze the bonds.
Nevertheless, it is generally believed

that

this

what

naturally

is

the effect

Cern,

market.

My

refunding

75%

of

will

be

will

this

in

probable

(2)

country,

the

'

guesses

have

the

on

effect

the mortgage

on

(in

Billions

of

July

to

1

prepared

as

by

Risk

in

assets

New

the

banking

(2)

money

Commercial

(b)

Securities

loans

other

New

v

v

Other

(3)-; Commercial Banks

2.1

risk

assets.—

1.52

>

6.6

Tojial

Govt,

Adjusted demand and

time

;

Pension

(5)

(excluding

Federal Government securities)

they

.

(4)

deposits

19.4

_____—

trusts...

1.0

Loan

1.1

Savings

(6)

7.2

sold—-

securities

(a)

3.2
>

(3) New capital issues:
Private and public

:

" 0.24

money

(b)

(c)

mar¬

me quote a
expert In" This
I quote, "This is:the most
important happening creditwise

by

an

the

country in

I give you this

generation."

a

&

Association

Miscellaneous

1.6

-

39.1

A

quick

review

the

of

above

substantial

under the heading "Supply" shows
sale of government

what the

commitments
total

to buy.
these commit-

of

is is unknown, but it is
certain that all of the $3,000,000,000 estimated funds available for

ments

se-

ourities totaled $11.52 billion, or
approximately 30% of the funds

quotation because

.PllM1Ac

#

Va

rVrially reduce the supply of funds
picture, there were available
for
new
investment.
[two purposes in these changes. This change should affect the
The first is
to
let
supply and present inflation if we agree that
; demand
in the money market the essence of inflation is too
work, and the second to encourage much money seeking to buy too
; the holding of long-term governfew goods.
I ment
bonds in the portfolios of
Let;, us now turn to the effect
see

type of investor had the following
on Dec. 31, 1950:
>;

ernment securities, it will mate-

p

Purposes of New Policy

.

As I

,

—

make it unattractive to sell gov-

effects.

the

position

fin Mii ions of Doiars)

-

-

|
•

^

Overall, the

icy is

because
tize
;

real

a

the

new monetary polattack on inflation

effect

government

meant

by the

is

to

bonds.

term,

i

understood if
clear

I

is

It

must

be

we are to have

on

the

mortgage

market.

Before the Federal Reserve Board
pulled the peg on the price of

1 long-term
price

for

that the changed monetary policy
will have on our own business,
that

government bonds, the
bonds had been

of

mortgages,

the second
namely:

of

and

take

three

my

items,

The Probable Supply of Money
Seeking Investments in Mortgages
Let

Tha^'lOO^/^"

t

current

investor

of

Joans.
,

in

Savinffs

and

T

Acsnria

oan

»avm/s and Loan Associa-

..

that these

i bonds,

in reality,

i as

were

the

same

money in the bank except that
wvqji mat
they earned, if purchased at the
.XX

xxxv

mcxxxxv

; support price, interest at

}s

the rate

$14,025

13,830

Percent of capital in mortgage

loanSf

98.6

The tdpudi of these associations
.mc capital ui
uict>e a&suciauuns
increased during the year 1950

by

approximately

$1,565,000,000

ings and loan associations

surance

have

:
;

life incompanies and other large
investors when planning their in-

vestment programs could, add up

; as

available for

the

new investments
following items: (1) expected

cash

income

from

payoffs

amortization payments on

i

and

existing

securities, (2) cash,.(3) growth in
assets, and (4) sale of government
bonds
which,
because
of
the
pegged price, were the equivalent
.

serve

Board

^iscontTnued

rigid

would be-fair to

payoffs

payments

assume

'and

mately

equal

are

will

give

ciations

in

at the

that

approxi-

or

to

assets

add

rate in 1951,

same

funds

to

which, if

savings and loan

total

their

asso-

available

for

new

mortgage loans of approximately $3,000,000,000,
-.

.1950, because

of

the

volume

quirefto

that

they

are now out of the cash




banks

the

commitments

in

war

Commitments

to

kind

report

by

the

issued

we can assume that the savings
loan

country

U.

S.

of trends

in

the

past four years,
it may (be assumed that there will
bg

ties,

is

that

true

in

bonds

mately

T950

that

associations

have

now

of

the

the

outstanding

mutual

savings

decidedly hesitant to

mit for

new

decline

in

their

Nevertheless,

commercial

I

guess
be

not

(c)

nncifinn

nf

Dec.

on

31

savins

1950,

hanks

Ipproxi-

was

Mii ions

of

Doiars)

$2sio4i

Percent of time deposits in real
40.1

estate loans
1950,

mutual

savings banks

the 'country made very substantial increases in their holdings
of

of mortgages.
was

of

49

rate

for

interest

long-term

securities
What

United

is

goes

the

States

between

that

Real

estate

Percent

assets.—

government

up

13,573,216,000

assets

loans

In

historical

con-

S'derable 6Xtent Cam6 fr°m ^
Sale °fof govennnent bonds"
deposits

Thelr

was

approximately

$750,000,000, about half their inin mortgage holdings,

The' 'largest

increase

an

23.9

the preceding

In

these

rates?

savings banks is in

of

New

get

To

year.
government

p.: '
JSicmds_ti

'
2.50

2.75
■

In

12 months the

otber

difference

reporting showed

term

4.0

.

the

words>

in

rate

historic

between

governments

and

.

long-.

conven-

of

$2,876,174,000 in tional mortgages after servicing;
holdings of mortgages.
In has been approximately 1.50% and
the same period their assets in-."between
long-term governments
their

creased

$3,692,861,000.

words,
assets

the

78%

the

of

went

into

In

other

increase

mortgages.

What

At

same

companies 'decreased

ance

and high-grade

in

time, the reports show
group of life insur-

same

that the

their

between

-

the

is

-

corporates 0.25%.>

difference in

these

rate

various

types of
security over the past .60 days and.
how has the change in the government's

monetary
policy
1
will
give

holdings of long-term U. S. Gov-^ fected then;?
ernment bonds by $2,480,163,000. comparisons
In other-words, it would appear dates.

two

on

af-you-

separate
;

'-v.,"

•'

Yields

February 8,

Type of Security—

March 21,

195 J

1951

'2.45

*2.80'

u

Long-term government bonds—
Moody's Average AAA Corporatesj,
Mortgages (after servicing):

2.65

2.81

(a)

Insured by the Veterans Administration

3.50

3.50

(b)

Insured by the Federal Housing Admin.
Conventional secured by dwellings-—

3.75

3.75

4.00

4.00

(c)
1

:

* Assuming exchange.
(In (b) and (c) actual

.

these

two
*

I

give

types

•*

'

you

rate

is

lower

because

of

premiums

paid

for

of securities.)
'

"

v.

-r4

-

the above compari¬

by life

insurance companies and
savings banks.
The de-;

sons to

show that there has always

mutual

been

historical difference in the

monetization of long-term govern-,
ment bonds will put a substantial

a

of Return

rates

crease

these

different

break

on

further

in

yield.

and

Mortgages

government

switching from
thus, it will

bonds;

of mortgages that will
in

fully, but I believe
it is a certainty that the rate must
change unless history is *to be
reversed.
In
other
words, the
yield on mortgages must go up,
as

perhaps

and

by

more

than

the

for

1951

Which

outstanding

matched

funds

no

commitments.
Of
the
mortgages

applied for this
be

are

all

not

course,

investment

accruing this year—just as.

ernment bonds and

commitments from last year, there
will be an overhang of commit¬

I

shall

to

results of my

sum¬

....

market in 1950

tially

supported

switching
ernment

from

was

by

investi¬

substan¬

investors

long-term

gov¬

bonds into higher-yield¬

diminished supply

,

(2)

risen.

This rise

reflected

in

ownership

gage

government

bonds

■

ends.

of mortgage;

on

government bonds has

the

AAA

was

year

Interest Rates—Interest

long-term

in

fact

the

•

funds.

points

of

of

Nevertheless, tne ouJook indicates.

Moody

This

overhang

.

when

illustrated by the decrease in the

mortgages.

an

year's

.

(1) Supply of Money—The mort¬

gage

now

savings

a
„

is

ments to be met out of next

attempt

now

-

will need to

year

against

there

Summary

/

be created.

there

historical difference between gov¬

mortgages.

-

materially reduce the supply of
money available for the purchase

other investment outlets have not

ing

concentration

so

difference

servicing)

real

—,

49 life companies

marize the

a

down,

or

High-grade corporates .
Mortgages—conventional (after

$56,874,959,000

loans

of

gation.

to

*

legal

Long-term

[admitted

Total

$1,560,000,000

holdings

for*

rates

the rate for other securities.-

goes

of all United States companies as

in

mortgage

.

generally recog-

a

that

fact

of Jan. 31, 1951:

In dollars, the gain

approximately

mutual

•

life companies represent-

and in percentage of time deposits
from 33.6% to*, 40.1%.
The gain

crease

discussed, namely:
.

yet reacted

Reaf estateloansIIIIZIIIZII

tin

,

.

mutual

types of invest- *

to the third item to »*

come

I believe it is

mortgages during the

types of security produce.
Gov¬
;
ernment bonds have gone down in
Mutual Savings Banks—Th£ price with a
corresponding in¬
1951.

all

except by the sale of other

nized

com-

large purchasers of mort¬

gages in

types of securi-,
only $2,000,000,000

some perspective on this point, I
wRl S° back to 1941 and quote;
ing 88.7% of total admitted assets approximate average yields of

banks

would

I"

3. The Trend of Interest Rates

Life Insurance Companies—

Data

reserve

be

monetary
policy
recentchang£?mtheg0-ernmen!
that commercial banks will

-

balance of 1951.

neces-

despite the
time
deposits.

made
or

other

leaving

.1 now

banks

will be

approxi-

was

have

selling

a

$0:5,000,000

:

at a discount and all types of long-term securities
with commitments of $1,500,000,-; are
pretty much tied to the long000
outstanding, I would guess term government rate, and as the

short-run period commercial bank

mortgage lending has not

I

securities.

government

very little, if any, growth in
new time deposits in this class of
It

and

gages

of

With

-

this

funds available for investment in/
1951 is now committed for mort-

in

securities

Government

mort-

of

.

be

$109,000,000.

figures

$4,000,- •
000,000 of the $6,000,000,000 of the.

was

a .cut

purchase

-

rise of $108,000,000 in the hold-

and

•

life

ment

February there

sum

be had from the

cannot

available for

mortgages

This

believe that two-thirds

National Association of
Savings Banks, which re-

Mutual

to

Accurate

investigations

few days ago

a

approxi-

insurance companies, but from the

pur-

This point is best illustrated by
the

be

$6,000,000,000.

gages.

mortgages, therefore, can
only come from amortization and
the liquidation of other securities.

-

x

and

approxiOn the basis

mately $250,000,000.

(In

:

below par; yesterday's (March 26)
wash 99 2/32 with the result

commercial

sav-

for"
[support of the market and long- ^ard commUmentf to puJchas;
?
w e r e mortgages.
The experience of
Sflul i.
?
a"
other types of institutions which I
and
demand"ttiese bondsUPfeU Sha" d'SCUSS later indicates that
bid

in

34.7

in *1951) decreased

would

to .10% mf

$1,400,000,000,

increase

they

In

deposits

*

mately:

amortization

mortgage''holdings,
their

Time
banks

and

officers of savings banks,

investment

es-

n

;

the

real

quick1;' aifected
the
w111 J>e quick';; aLlected by the
by
the gover

zations

of

Thus

in

tate loans——

will

;

2.45%.

deposits

holdings :in

,

,

purchased°by the^ederal dieserve SSiSSb loSt
Banks.
The effect
was

of

start

esti-

sources

to

sum

existing loans. When I discussed
mutual savings banks I gave you
their approximate
outstanding

overall increase

an

-

represents growth in assets plus
payoffs and amortization of

chase

sarily been ciosely tied to changes
in time deposits.
For example,
mortgage their net increase in mortgage

iwhe^|^X|^tion:
|

the

.

Korea.

begin by examining the
position of four major

us

types

of

institution.

.

these

! rioTaTnofless

up

2.

a

picture of the effect, it will

have

|

What

"demonetize

government bonds?"

|

demone-

.

lliilo

r
Percent

,

investors in this type of
security,

since

(d)

39.1

raised to supply the demand, mortgage loans 'cannot be used
j I want you to realize that this is a Since, as I have said, the new for new mortgage applications
tvery fundamental change and is monetary policy of the Federal this year.^ thus certain to have far-reaching
Reserve Board will undoubtedly
,b)
Commercial
Banks
This
.

mutual -savings

had

this

,

com-

money will they
for investment in

Competent

mate

of Oct. 1, 1950, these commitments
totaled $1,500,000,000.
Time de-

in

what

available

mately

outstanding commitpurchase mortgages. As

not

is

1951?

which shows

a

than

;

Federal

First, however, let

statement

have

in new mortgage
loans for a net gain in mortgage
holdings of $900,000,000. The significant part of this report is that

have

con-

.

$1,300,000,000

ings'of

;v'<.

.

panies

posits

*

of securi-.

The important figure to
sider with the life insurance

4.4

sold

*?$>■ '(b) ^Govt, securities sold

14.4

other types

and

gages

of these reports
figures that in
preceding 12 months New
York State Savings Banks closed

2.8

——

securities

banks:

Savings
(a)

(a>

companies:

Life-insurance

(1)

degree

ties.

closed that in

supply

.

12.8

considerable

a

February new deposits were exceeded
slightly by withdrawals,
In addition, the association dis-

:

v

to

port showed that for the month of

Dollars)

f

mortgages____—_-_

new

field.

in

1950,

(a)

in monetary policy and
they have on the
investment
market,
particularly
mortgages?
In my talk I shall

;

31

Dec

business based

Lionel D. Edie and Company,

(br Govt,

changes

will

the

.demand

(1) Net

what effect will

ket.

esti-

an

you

from

figures

actual

supply of money seek-

'

to give you the reasons for
the-, changes
and
then
hazard

will

I

institutions
the State
on
Oct. 1,

...

for these

try

by giving

in private

capital

Victory's
for the new

reasons

savings

of the annual rates of demand and supply 0f credit and

system:
are

borrowing

real

inflation.

Tbjs

TABLE I

(2)

What

is

than

mate

the outstanding

exchanged

whole,

a

money

illustrate

be

d^lded mto three parts;
the
on the general inflationary

trend

as

create

effect

opera-

bonds.

some

con-

the mortgage

on

analysis

tion

will be a success.
Informed
individuals estimate that at least

try,
more

major

my

sell

that

low-yielding governments
were
replaced by higher-yielding mort-.

the

ments to

to

to

Department

to

A summary
discloses in round

and

goods

^ fecrinvestorshesitant

.

„

of

making investors nesitant to sell
and show unnecessary losses. Actually, we are in an untenable
position today in that the coun-

Mortgage Market

,

market these

Treasury

the

in-

will sell tor about

notes

The

thinks

Bond

talked

nave

the present

in

five-year

time of

a

pressure.

with whom

that

at

price

.

supply

of

reports

able

are

Thursday, April 5, 1951

.

1950.

have a rise in longterm interest rates which would
*reeze up many bond portfolios

With this background I turn to
.

ex¬

are

money is to

*

,

we

services. reduceof the supply of
One
the
*?dtl
ways to

;
on

the

man

be

tized

Effect

inflation

we

group

their

Banking

periencing is that our money sup¬
a faster rate

demone-

were

from

ply has expanded at

longer

no

government bonds

the marketable five-year notes in
the market will have to take a
discount

can

©f the

cause

considered the same as money in
the bank for investment in other
securities at higher yields.
In
other words, when the pegged
price no longer existed, long-term

investor who sells

an

and

category

Inflation

on

''..It is widely agreed that a major

and

that

about

...

the

interest

was

immediately;

gain of 16 bases
average

yield

Corporates.
rates

also,

of

Mort¬
in

all

Volume

173

Number 5000

.;

.

probability, must increase.
much, the market will tell.

*

The Commercial and Financial Chronicle

.

.

the

How

supply of these mortgages is accounting, will know that he
exceeding demand.
cannot successfully operate for a
(b) FHA Auaured Mortgages— service fee of less than one-half

Conclusions

Excluding

puiicy

indigestion

time

in

the mortgages,
is

future

example,

the long-

clear.

not

X

Regulation

insured

J For

FHA

-and

expected

VA

.

creased

mortgages

new

or

building
If

approximately

of

this

reduction

expected

building

40%.»

lowing yields?

in

mortgages seeking

new

latter part of 1951, as

(83,000. units)

and

luo/e

—

_

servicing, to produce
of 5%.
of

government, to forward the
ment

be

program,

tnus

use

things

up

mention

I

because

-

in

these

forecasting

'

I

be hesitant to.estimate the'

would

events

of

course

beyond

six

Within that limitation I

montns.

shall

more money

what might
surpius funds seek¬

otherwise be

give

conclusions.

you my

,

_

Investment

be very

hesitant to sell securities
at 'losses

owned

now

unless

Again,

will

principal
will

types

with

.

substantial

warrant

sale

a

rates

probable

established

by

result

will

be

that

re¬

new

'

savings,

limited supply.

a

Mort-

'

in! 1951, therefore,
compelled
to i compete

will

market

reduced

gages

for

of

a

in

decidedly
.The

money.

be

advantage

indications

turning to
the buyer of

of

"> mortgages.

heavy and with an in¬
to favorably sell existing

investments, some lenders may be
forced out of the market for
new
mortgage

investments.

Interest Rates

Mortgages

on

<

Veterans'

.

Loans

8/when

—

Federal

Before

Reserve

support was removed, the differ¬
ence
in rate between
long-term
government

bonds and mortgages

;,„T'

maintained, the gov-'
rate; having
been
in¬

eminent
creased to
a

2.75%, the net yield
mortgage must increase

GI

on

ito

3.75%.

________

2MB

-

Street.

Albin

joined the

He

previously

was

County Electric

principally in the

(Special

Co.
gen¬

other purposes.

to

The

CHICAGO,

Financial

111.

'%*

.?

Chronicle)

nolds

&

Street.

He

was

formerly a-part¬

in John J. O'Brien & Co.

ner

?•«*,-Pii

*

gross, 4V2% net:

Belgian Francs (U
Cash in

VA

hand, with the Banque Nationale and Postal Cheque Office™
at call™___—
Balances due from banks—
;

4.352

Money

4.205

2Mb:::::::::::::::

4.13J

•'

.

indicate to

you

rate

residential

on

Head

;

Bills

that

mand

small

I
a

some

have

now

through.
do

not

give, and I

Loans

.Those of

been

in

business

the

that

know

more

us

it

be

with

Legal

2.900.000.000,—

8.396.500.000,—

securities-.

reserve

government

pay

business

Our

will

of

quality

and

500.C27.851,—

securities

240.333.618,—

Bank

•

renders..

premises

,__

in

Amounts

from

real

estate subsidiary

real

estate

advice.

I

____.__i.____
'

_____

liabilities

>/(

d
Preferred

'

■

.1,1

121.000,002.—

Nationale

Other

;

to

Office,

:

bills

and

time

Other

in

and

course

callable

Banking

of

Reserve

2.136.704.338,61
477.312.731,63

719,909.772,49
—,*17.819.406.587,78
2.658 269.805,87

securities

20.477.076.393,65
323.118.495,—

_____————

241.465.847,75

—

reserve

(Royal Decree nr 185 art*

and

brought
for

Reserves:

13)__________—

,50.000.000,—

1—♦.—~—
revaluation

of

forward

1950

Account:

Loss

1.300.000.000,—

•

—1

——

-T--'

—

595.671.175,33
154.328.824,67

investments____.._'___^.______
Profit and

Balance

25.645.364.354,61

500.000.000.—

__i

deriving from

Balance
v

21.722.767,80

959.640.049,87
287.813.057,81

—

______

on

fund

reserve

(>0f

—- '

———

Available

increased

ri,

collection---.—

Capital

Legal
'

00
.ss

Belgian Francs ('

.^___

month's notice™^

liabilities

Capital

.

a

21.722.767,80

Affiliates....

am

plans are being ^dis¬
cussed whereby some lenders may!,

OP

n;-} t

accounts:

at one

deposits

S Amounts

,r
-

current

sight or

on

•

Belgique—...

,

liabilities—

term

for

Deposits

de

••".noPUtt

•

banks___-___™_-__——

Branches

short

Creditors

creditors:

(Ji

/loitrt.Y

Current Liabilities:

creditors
due

Head

.

guaranteed

or

Banque

Balances

a

told ithat

the

121.000 000,-

_____

companies—

subsidiary companies

27.124.295.776,40

Other

he

27.003.295,774,40

fd'

.yf
the bit of

Now,

70.714.042,64

Fixed Assets:

•

due

3.214.972.943,05

«

_

Participation

the;

service

1.928.513,50

stocks

or;

to

return

2.332.082.960,5-5

____

securities——:^-™—

Other

:'

who is

or

50,000.000,™

_____

government, securities..

Other, assets

going to,'
the largest premium for it.;
loan

200.394.842,28

2.136.704.338,61
4.055.485.510,82

•___

done

who is going to make

13.240.502.628.54

securities__~_.™_™_____.
acceptances

Bank
*

unsound when it revolves around'

largest

with

1

Nationale

Belgian

Competition by lenders for mort-;
gage
loans
eventually becomes
either

the

95%

..

to

up

Foreign

mort-;

years

can

rediscountable

Securities portfolio:

who have \

25

'780.908.740,44
~

:

mobilizable

on

receivable

349,52

1,944.002.628,54

bills

advances

919.581.030,34
508.085

;

•

bills

,

•

.

—

liability for

Accounts

am

alarm.;

their services in arranging

and

Customers

men

gage loans.

Banking Affiliates

assets™

__

the V Banque

My comment is that I\
the possible disap-;

of premiums with

and

860.946.348,16
415,000.000,—'•

•

____

____

Banque- Nationale

view

pearance

term

bills

Government

they may com-1'
premium.

bit of advice to

short

Government

.conventional,

comment to make,

a

Branches

portfolio:

Trade

mortgages will go to 5% with the

probability

Office,

Other

that the4

me

*

_.

%

The premium and yields I have

given

——

•

18.816.001,24

160.115.420,55

r

;

178.931.421,79

27.124 295.776.40

.

one

of

the

pected average life of eight
years,
at what prices will GI
mortgages

companies

have

spondent

to

sell

in

order

the following yields?

to

produce

The

answer •

3-70—

Price
98 %

________

3.75___-

98 Va

3.80.

I

am

there
loans

97%

reliably informed that today
are

quarter

whereby
will

of

lending

blocks

of

VA

insured

being offered at prices be¬

tween 98 and par,

indicating that




room.

not

the

service

1%.

corre¬

for

are

reduction

if

he

runs

with

account

of

in*this

in

the

any

cost

Banque

(credit unusedj__—,___

2,110.000.000,12.690.007,-

account

account

of

;

—

—

others

...

—

—*—_

held

in

8.930.676 290,04

2.755.558.269,35

2.73^.147.274,17

——

1.982:988.633,45

exchange

Securities

2.122.690.007,—
16.250.000,—

_______—

—.—

for

redi.scountcd

Bills

Forward

Nationale

others

pledged for own
received

servicing fee can come to nothing
but grief for both principal and
correspondent.
A
loan
corre¬
spondent,

account

aivpn

to

a

own

Guarantees

I would advise both of you

because

for

Securities

accounts

collateral:

Guarantees

permit this type of bad
practice to get started.
I advise
this

as

loan

and

both

pledged

for

one-;

Representatives

institutions

correspondents

Yield

contingent

life insurance
Assets

of

works out.as follows:

smaller

safe

custody

52.472.880.225,12

:—

(Law of 14-10-1945 art. II
holders——__.

Monetary reform loan
a)
'

for

private

b)

for

tax-collectors

Other

accounts

4

7.635.981.623,17
691.540.914,48

•

-

t

(J)

lS—EO

Belgian francs.

8.327.522.537,65

2.843.106.904,(6

j.—,

—

.

Rey¬

Co., 208 South La Salle'*

SHEET

-..'Current Assets:

'

Philip Tallman

has become associated with

Electric

31st December 1950

5

with

Philip Tallman Joins
Reynolds in Chicago

.

.assets
of

*

104.54%

3.639

interest

G.

staff of

Shillinglaw, Bolger & Co.

of

*

3.711

;

—

-

Mortgages with

get

this

has

Chesley & Co., 105 South La Salle

to par.

BALANCE
'

3.782

-

staff

Chronicle)

—

Yield

~

VA loans at par and
yield-by de-;
change in rate
indicate for th§ price of veterans' * creasing the correspondent's serv¬
ice fee.
I know, of one deal of'
insured mortgages?
Assuming a
20-year mortgage with an ex¬ this type that has been made by
does

111.

THE LEADING BELGIAN BANK WITH 129 YEARS OF EXPERIENCE

offer to buy

What

Financial

-

Societe Anonyme

'

2

If this difference in* skill

rate is to be

Swanson

appliances are sold by the com¬
incidental to its business.

'fV::

.

1

the

Chesley Staff *

3, Montagne du Pare, Brussels, Belgium.

insured by the Veterans Adminis- sound
basis of operation when
tration after deducting one-half mortgage men are paid a fee r.vj
of 1% for
servicing was approxi-' the mortgagor based upon the'*

mately 1%.

to

BANQUEDE LA S0CIETE GENERALE DE BELGIQUE

.

•:

Chronicle)

we

interest

■

(a)
March

from

run

added

The

to

CHICAGO,

plant

prices

been

Joins

pany

and that it is the soundest method.

'

has

(Special

Special redemptions may
at prices ranging from

sale and

has

Financial

Blair, Rollins & Co., Incorpo¬
rated, 135 South La Salle Street.

eration, purchase and sale of elec¬
tricity for light, heat, power, re¬

City,

The

to

eight

two different

1Mb

Many

very

ability

York

1,900

aggregate

of

treasury for,

company's

redemption

Worcester

away.

in this room have
(b) Commitments already en¬ never had the experience of con¬
tered into by many institutions
sistently charging borrowers forj

are

New

the

England Electo the cost of,

the

the

to

is engaged

4%.% gross, 4%

gross, 4% net:

the

that the market is

J.

about

Mortgages with interest of 4y2%

the

seeking invest¬

mortgages will be
stricted to that obtained from

passed

We

government

by

use

Clifford

of

made

101.55%

James T. Fox, head of James T.

Fox., Co.,

con¬

case; because

interest rates, one

»The

in

ment

the

this

controlled

with

New

bonds

new

to par.
be

.

an

mortgage

life,'of

presently held

-reinvesting.

amount of money

flow

20-year

agencies, I shall

increases .to

of

for

are

In

not

are

that

.securities

-

"

a

an' expected

years.

be justified. ?The

can

be

yields on all
investments must -reg¬

of

ister
.

assume

•

what

ventional

% Premium

result

-

^

illustrate

me

happen to yields in the.
mortgage
field.

may

can be reinvested at yields
that* are so attractive that the loss
'in

let

the

fundg

-

the

James T. Fox

4.25%, and the gross to 4.75%.

.will

managers

was
previously
Murphy Co.

its

sale

property.

General

joined .the staff of*W. E.
Co., DeWitt Hotel. He

net; and the other, 5%
gross,
4*4% net, and then estimate the
yield based upon an assumed fixed
premium.

.

Supply of Money Seeking
Mortgage Investments

(a)

to

arma¬

by that time

may

needing to borrow

and

ing investment.

.

and

the net rate will have to increase

with

the

to reimburse

or

Hutton &

loan is to be con¬
historical place,

mortgage

sistent

to

trie System; and

courage

(Special to The Financial Chronicle)

Dow has

net yield

a

the

gate principal amount of notes
due May 31, 1951; to the payment
$505,000 aggregate amount of

LEWISTON, Maine—George C.

If the yield from this type

from

of

notes

and

Blair, Rollins Adds
(Special

bonds will

additions

mortgages have been selling, after

5)

be applied to
the payment of $11,870,000 aggre-

With W. E. Hutton
..

and

man

Proceeds

do

of

area

CHICAGO, 111.—John G.* Cole¬

series B

99%

should go down in the latter half
of the year, it is possible that the

v

the

Inc.

(April

terest.

Par
____

On the other hand, although the
demand for money for mortgages
*

have

Co.

an

miles

population of approximately 570,000. The territory served includes
the highly industrialized city, of
Worcester which has a population
of over 201,000.

bonds, series B 3V4%, due
1981, at 101.54% and accrued in¬

an-

we

&

today

service is provided in 77
towns in a territory

square

gage

a

to face up
to the changed situation.

Conventional Mortgages —
Excluding premiums, conventional

in Feb--

*ruary (78,000 units).

not

(c)

rby the number of starts in Jan„»uary

:

3.80

is illustrated

seek

us not at the same time start

Price

'3.75

„

required to

correspondent and then pay
a
legitimate
service
fee,
thus
voiding the increased yield he

other bad practice because

3.70

market by about $5,000,000,000.
This reduction in mortgage vol¬
ume
will not occur before the

a

>

produce the fol-

Again, the figures

Yield

-

volume of

be

are

35

and

having

offering $12,000,000 Worcester
County Electric Co. fifst mort¬

mort-

removes the bad practice of pay^
ing premiums for mortgages, let

are:

it will reduce the

occurs,

to sell in order to

Halsey, Stuart
associates

thought he was getting.
If the
tightening of the money market

life of eight years, at what prices
will FHA insured mortgages have

"

.

-

gage

building from approximately
1,400,UU0 units in 19o0 to 800,000
8o0,000 in 1951, a reduction in

will

the

of

cities

Halsey, Stuart Group

new

Again assuming a 20-year mortwith an, expected average

of

lending

a

gage

de¬

a

the

income, the holder

mar-

yield.

are

tne volume

to reauce

money

Ugut

if it involves

will continue

accompanying credit restraints on'
*

a

satisfactory

turn,

the correspondent gives
poor serv¬
ice or fails because of lack of

ket, I doubt that this preference

the

and

In

render

In

offers or accepts
proposal is only laying up
for itself future trouble because if

by-the Veterans Admin¬

istration.

and

institution that

such

man¬

have consistently preferred
insured mortgages to those

agers

se¬

.

to

term
:

new

FHA

curities.
As

for

JL%

service.

net

a

at :the

market

the

today sell,

consider-- after servicing, to produce
Investment
present yield of 3.75.

inducing

is

able

-in- of

FHA

premiums,

sured 4.25% mortgages

Electric

Worcester County El.
3V4% Bonds Offered by

now

The changed government mone¬

tary

(1459)

36

The Commercial and Financial

(1466)

Continued from first page

other factors in the economy

in a way which is about as
plan. They want to be assured
that their rates of pay will move up as fast as '"consumers'
prices," so-called, rise. As a matter of fact this appears

*

infeasible

We See

As

; V

:

Insurmountable Difficulties

,

for the time

again showing a good
again strongly suggesting
that many of the problems facing economic managers
would still be difficult, not to say insoluble, given the
wisdom of seventy times seven Solomons. We should have
known, indeed most of us did know quite well, that it is
quite impossible to "freeze" or control one or more seg¬
ments of the price structure without controlling them all.
It should have been obvious that any "freeze" or fiat fix¬
But

current-developments

deal More than that.

They

are

are

ing of all prices at levels prevailing as of a certain date
would create fully as many problems as it solved. Even
cursory knowledge should make it clear in advance that
what is known as the economy is a restless, ever-changing

forth

further

no

changes

are

to

be allowed, except

Continued

as

by some cumbersome control mechanism, must
inevitably be largely ignored or be the cause of endless
confusion and difficulty.
is

en

of the most

lated

other

income

in

restored and maintained.

succeeded,
cost

to

the

or

the

Of course,

nation—if

it

all.

Nor

The

civilian
is

of

consumption.
in order

necessary

one of these
objectives is
large degree dependent upon

kind

and

If

extent

of

taxes

corporation

whether income

or

food stuffs inf areas; where"

grain-

growing production-records have
already become, you might, say,
routine business,

~

j

•',

,1

.

closing it is right,and propeir
to touch on and give due credit to,
Canada's superb banking system
which, in this past century; has
played such a vital part in the
constructive development of the
country. The general character of
our
branch banking system is; I
.In

believe, known to you; it is flex¬
ible and has proven adaptable to

whole.
competent manner in
banking system has

the Canadian picture as a

The

very
which our

been administered has

given

us a

the true

stabilizing force,

demonstrated

we

put

too

encourage

unnecessary expendi¬
tures and diminish incentive. The

effect is inflationary, both on the
side of higher unit costs and on
the side of fewer goods.
If

too
too
a

individual

income

taxes

are

high and graduated upward
sharply as incomes increase,

whole

flock

of

evils

results.

Private savings which are needed
to

provide capital funds are dis¬
couraged generally and in many
cases
made
impossible.
It in¬
the difficulty of selling
government bonds to the public,
which is the most important form
creases

subject to definite
limitations, and these

are

limitations have been reached, or
almost reached.
To
go
beyond
them

would

create

difficulties

either in the form of
flation

or

greater in¬

diminished

of

produc¬

tered World War II in September
of 1939.

This

central

bank,

in

liaison

with the Foreign Exchange Conr
trol Board (which came into ber

ing

on

Sept. 15, 1939), worked in

closest

tion.
It

therefore, that the

appears,

most fruitful

source

of

reve¬

new

is the extension of excise and

nue

on March 31, 1935, and was
firmly established and functioning
smoothly by the time Canada en¬

ations

and inherent

sales taxes.

These taxes

non-„

are

inflationary, do not directly bear
upbii productiori costs and incen¬
tives, cannot be pyramided as
they pass to the consumer, and
yet at the same time they serve
better than any other tax to en¬
courage economical consumption.
What

taxes,

excess

profits,
high, the result, as
we learned in the last
war, is to
discourage production economies,

that

we

I

have

tried

to

show

is

should not support blind¬

harmony with Canada's
chartered banks, and all formed a
team which worked - most effi¬
.

ciently and harmoniously through^
out

II. They collec¬
individually played
efficient parts in assisting Canada
to assume an important role in
that war, and, also, because of re¬
lentless war pressure they pro¬
moted the development of Can¬
ada as an industrial nation, with
the result that today she probably
War

World

tively

and

seventh

ranks

in

world

the

of increased taxa¬
tion without knowing what we are
doing.
Likewise important in the battle
of inflation

in

manufacturing output; arid
this
development
Canada

world-trader.

ly

program

a

policy

is the kind of credit

government adopts,
both as regards public credit and
private credit.
It is dangerous
and foolish to urge that credit in

general should be restricted. Only
some

kinds

of

credit

should

be

restricted; other kinds should be
expanded and liberalized.
For example, government bor¬
rowings to the greatest extent
possible should be in the form of
bonds sold to the general public,
to the insurance companies and
to

with
has,
also, grown in the field of foreign
trade to the rank of third largest

our

agencies

administering

trust
anti-

in

But

growth

all

this

development is

any

aspect

no

and

of

heart-warming circumstance
to be found, than in the fact that
throughout this past century a

more

truly remarkable degree of harmany, friendship arid good-neighborliness has prevailed between
the people of Canada and
the
people of
this great Republic,
where, under these very pleasant
circumstances,

it

has

been

my

privilege to meet with you today.

anti-inflationary
borrowing. funds. Such borrowings are
too far,, it even forces inflationary.
They soak up sur¬
Howard E. Spencer Joins
many
people
to
liquidate the plus spending power and do not,
duPont, Homsey & Co.
bonds they already have. We have under stable conditions, serve as
(Special to The Financial Chronicle)
also discovered that excessively a basis of commercial credit ex¬
BOSTON, Mass. — Howard E.
high income taxes tend to create pansion. Bond sales to the Fed¬
an irresistible pressure for
general eral Reserve Banks and commer¬ Spencer has become associated
cial banks are, on the other hand, with
duPont, Homsey & Com¬
wage increases.
pany, 31 Milk Street, members of
As in the case of corporations, highly inflationary.
In the field of private credit, the New York and Boston Ex¬
private individuals also suffer a
loans for industrial expansion of changes.
He was formerly for
loss
of
incentive from
steeply
the type needed to strengthen our many years with R. H. Johnson &
graduated income taxes. We had
economy should be encouraged. Co. Prior thereto he was an offi¬
ample evidence of this even in the
cer of Russell Dean & Co.
lower income brackets during the Under present conditions it is, of
last war.
Outside the fixed in¬ course, proper that loans for non¬
essential and speculative purposes
come groups, it becomes increas¬
With Coffin & Burr
should be curtailed.
<
ingly evident in those cases where
(Special to The Financial Chrqnicle)
The restrictions which have so
a man's income is closely related
BOSTON, Mass. —r. George H.
to his personal effort and assump¬ far been imposed upon consump¬
Pushee is now affiliated with Cof¬
tion of personal risk. As he moves tion credit seem fair and reason¬
fin & Burr, Incorporated* 60 State
up the ladder, each step costs him able.
Street, members of the Boston
a higher tax rate until he finally
Our thinking on credit, as in
Stock Exchange. He was formerly
reaches the point where further the case of
taxes, should not be
of

Carried

serve themselves and the world
by entering
pursuits—or, perhaps, to express it more precisely,
that many who from year to
year enter the business of
farming would do better to enter some other branch of

other

business.
It is thus clear

enough that the farm parity system
only a stumbling block to the officials
and others who are now
charged with controlling or sta¬
bilizing prices, but has long been a burden to the American
people generally and will remain a burden quite without
regard to whether we are rearming or, for that matter,
fighting a major war. It owes its origin in large part to
political pressure—quite typical of any sort of managed
economy. We can not afford this type of thing in peace¬
time any more than we can in a rearmament or war
period.
in effect is not




a

the

would better

.

effort

and

risk

are

the compensation he

too

great for
is allowed to

keep.

|

tax, it

seems apparent

crease

in the rate,

the

general terms, but should be
on
specific situations and

time

deterrent

to

that

an

in¬

or a reduction
period, would be »a

investment

activity

and so handicap the basic expan¬

sion of industry..

,H

,

with A. W. Smith & Co., Inc.

based

have

I

With respect to the capital gains

of

in

pases.

Capital Gains Tax

Labor, Too

history for a standard.
They are, however, insisting upon a set of relationships
which undertake to fix their position with relation to

of

latter

have.

acres of land to
produce a
great deal more of most of the staple crops. It has been,
evident for years past that a substantial number of farmers

It is true, of course,
ers have not
gone back into ancient

incentives

stimulated, the flow

Each

fewer individuals and fewer

of the current situation is analogous.
that representatives of the wage earn¬

individual

be

requirements.
to

is

The labor aspect

purpose,

must

keep prices down and to make
easier the satisfaction of military

slightest reason why it should be desired. These
relationships prior to the first World War were the result
of economic factors then present. They reflected the net
of many factors of supply and demand
throughout the
country and the world. It is now a well-known fact that
the people of the world do not want the same
things in
the same old proportions as in the
days of old. Their
habits of living have changed; many products not then
existing now bid for the consuMdr'sdncoMe, some of them
very directly competing with the produAs of Agriculture.
Advancing technology has rendered it easily possible for

And

this

to

there the

now

greater defensive

realize

investment

volume

base

at

activities

encouraged,
the provision of new plant and
machinery facilitated, at the same
time keeping within bounds the

period, be
neither scheme has

succeeds

be

capital

is likely to succeed, except at very heavy

entire

those

initiatives

sharpened,
must

are

so-called

To

power.

in

need

we

personal

somewhat broader concept was later developed
required that the income of the farmer, when re¬
to

facilities

where

Those Farmers!
A

Opportunities
turally rich prairies wilt further
promote the- mechanization,, and
consequently, the production of

porated in 1934, commenced oper¬

The types of taxes which I have

our

trial

powerful
vote-controlling segments of the population. To the econ¬
omist it is no stranger that much of the current trouble
is centering in this segment of the nation's business. It
will be readily recalled that one of the very first "freezes"
or
attempted "freezes" and the one which has enjoyed
the longest-lived support, was the farm price parity plan.
It was, of course, a plan for a "roll-back" plus a freeze
of the resulting relationships between farm prices and
other prices. It was an effort to turn back the hands of
the dock to some pre-World War I period, requiring
that the price position of the farmer in these earlier days
vis-a-vis the general price structure in other segments of
the econbmy be restored and then forever after main¬
tained by one device or another.

which

Canada's Investment

when, during the great depression
between
the wars, no banking
failure or bank difficulty of any
kind developed in Canada.

Regulations

economy, to expand our
production, to enlarge our indus¬ discussed

when it is recalled that the farmers of the na¬
one

-

The Bank of Canada was incor¬

strange that farm prices should be one of
the major hurdles at the present moment. It is not strange,
tion have welded themselves into

from page 13

value of which was

from page 31

|

not

of course,

a

Roadblocks oi Unrealistic

ordained

It

Continued

great

thing, and that at any moment in time changes just com¬
pleted force other changes within a very short period of
time, and that to ordain that from a given moment hence¬

Thursday,-April 5, 1951

.

with which they will be satisfied even

being. Such

position seems difficult to rec¬
oncile with any sort of "sacrifice" in the present emer¬
gency as the President and the others are repeatedly de¬
manding. Let two facts not be lost to sight: One of them
is that taxes (other than personal income taxes); paid
by
the consumer are a "consumer price" when the current
BLS index is computed. The other is that it is the rate
of pay—not weekly
earnings, which are swelled by fuller
employment, overtime and "up-grading" of workers —
which must keep pace with what used to be called the
cost of living.
In view of the monopolistic position of
labor unions and their powerful
political position in the
country any position such as this taken by them must be
regarded as part of a managed economy of the day.
We can only hope that lessons will be learned from
this "emergency" and that
they will not be forgotten when
times are again "normal."

t:

.

.

the farmers'

as

to be a minimum

prices and related matters, that confusion becomes
worse confounded when untrained agents by the thousands
are sent out to do the controlling.
over

,*

Chronicle

.

talked

at

somle

■

r

length

With Chas. W. Scranton
(Special

tax and credit

policies, because
they affect us as businessmen al¬
most to as great a degree as do
the policies of OPS.
They merit
on

our

closest attention

as

individuals

NEW

B.

to

The

Financial

HAVEN,

Church, Jr., is

with

Chas.

W.

€hron(c£e

Conn.r-Wi!if^
now

connected

Scranton

&

Co*

209 Church Street* .members of
certainly should not go un¬
the New York. ..Stock Exchange.
recognized by the, Institute.
r.
,

and

.

Volume

173

Number 5000

.

The Commercial and Financial Chronicle

.

.

(1461)

Continued

from

to

measures

6

page

stimulate

produc¬

tion."
In

What Is
to

dollar

our

numerable

a
services which is being

resulting from in¬
and
inexcusable

for this currency

ity

abuses, to mistakes of our govern¬

manipulations

deliberate

dollar.

the

weaken

to

more

In another

to their

Due

a

than volume."

seemingly

ment "planners," and to

is

exchanged

often veloc¬
important factor
.

.

.

pamphlet, "Our Irre¬
System," Pro¬

deemable Currency

inability to prevent these mone¬ fessor Spahr points out that "all
tary abuses and manipulations by our domestic money and deposits
constantly testing the integrity of are linked definitely, but indirect¬
the dollar by traditional and prac¬
ly, to gold at the statutory rate of
tical means, they are converting $35 per fine ounce." He then
(their monetary assets into secur¬ agrees with Gregory that "the
ities in the stock market, and are functions of a gold standard, of
'exporting liquid assets to Canada, gold money, and of a redeemable
Mexico, and to other Latin Ameri¬ currency
have
never
included
can countries. Today refugee cap¬ that of preventing business or
ital is flooding Uruguay, over $200 price
fluctuations.
To
advance
million having been sent there in such an unwarranted
assumption
recent weeks. This flight from the would be
analogous to an asser¬
dollar—from bank deposits, from tion that
laying good steel rails
securities

government
doubtful
serious

we

the

restore

confidence

American people in

havior of the operating personnel.
.

the

of

.

The greatest fluctuations that

.

the world has

it before it is

those

too late?
The

prevent
despite the quality of the
equipment and the be¬

rolling

integrity and

have been

ever seen

associated

with

irredeem¬

Frank

Professor

D.

Graham has thrown light on this

problem.

surer,

He wrote:

J"Properly handled

paper

existing

cur¬

of

overturning the
basis of society than to

means

perhaps be the most
'stable form of money
Under

debauch the currency.

:metallic monetary standards there

of

rencies might

.

.

destruction.

physical limits to the possi¬
bility of expansion of the * cur¬

are

rency. In the

case

no

such

observed,

objec¬

have

to

as

led

wealth

We

to

to apply

jectively ! imposed
tour-fold

restraints,"

increase

in

our

bankers

many

and

a

mone¬

Even

the

George

iron

Washington

people

inevitable

awful

stated

the

."All

•

economic
in

all, under present
and

America,

to

a

day

dollar may work in
of a distant

future.

It

sledding in the

.United States of today."8
The

Question

N

of

'view

ments

of

our

to

be

paper

currency" and
deposits in gold today is not caus¬
ing "uneasiness with respect to
the

acceptability

of

value

such

cur¬

rency."
Professor Walter E. Spahr states
ih
his
pamphlet,
"It's
Your

Money":
monetary unit

ing of the volume
in

connection

of

with

must think also

...

In think¬

our

money

prices,

one

of the volume of

deposits being used, of the Veloc¬
ity jWith which money and dea

(^|fs are being employed,

and, of

^course, of the volume of goods and
7 Encyclopedia
Vol. 5, p. 592,
;

8

of

"Money" .(1935),

the

"The

battle

have—to
The

Social

Sciences.

116.




integrity, then

is

worthy

win

the

of all

we

victory."

incongruous and
conflicting policies are becoming
obvious to all who seek
to

monetary

our

Day

by

the

of

solution

a

fiscal

and

ills.

day, the incompatibility
divergent forces becomes

Only
the

lack

of

tional

this

prohibits
"piling up addi¬

evidence"
that

to

seem

substantiate
evident

from

Our

been

which

and

13.714

of

to the clock.

This

States

grains

still

is

Ideas Wanted for
>

pure,

'Bawl Street Journal'

exchange value and
The month of April has been
purchasing power of every declared an
open season on ideas
currency
in every country.
It- for this
year's Bawl Street Jour¬

their

measures

their

and

successes

nal,

the r annual satire of Wall
Street doings which is published

failures—their

their

stability and
instability. But in the United

as

the gold. dollar is denied
opportunity to function, un¬

that

it

contribution
the

Even

a

purchasing

reasonable sta¬

converti¬

bility of our currency and bank
deposits into gold in the past
contributed greatly to reasonable
stability in the value or purchas¬
ing power of the dollar.
modern

gold standard within

managed

our

.

power

rency.

(domes¬

the

Bond

Publication

William

First

stability of
of our cur¬

B.

Boston

Club

:

.

Chappell,

of

tee, and John A. Straley, of Hugh
Long & Co., editor, have sent

football,

inevitable

that

our

have

we

the

It

bers—and

"guard"

is

being

it

mem¬

include

to

any other interested members of
the financial community—to take

opponents—

constituted.

now

extended

seems

the powerful forces of inflation—
will score on our defensive team
it is

invitation to Bond Club

an

five-yard

creating

in

part

the

1951

kept

Wall Streeters

the

on

are urged to tell
editors what they would like

the

bench.

With him in the game the
defensive ability and morale of

to

see

the

to

suggest topics they feel would

other

ten

players

would

be

in the paper this year

sure-fire.

greatly strengthened. Even a suc¬
cessful goal line stand could re¬

be

sult/

arid

for

1

•

material

stories, cartoons and adver¬
lampooning Washington

and Wall Street will be welcomed

Confidence of the public in the
its integrity—would be

up

team—in

to the deadline

of May

any

prejudices

have

or

Regardless of
the coach may

his

of

any

plans, logic and

own

tell

R. E.

embarrassment to
demand

the

"guard"

now

is

Hornblower

sit¬

ting

us

curities
the

the bench, who Has thus

on

Robert E.

—

engaging in

use

of this powerful

Hornberger Opens

DALLAS, Tex.

common

to

sense

business

Kirby Building.

INCOllPORA TED

NEW

is

Condensed Statement of Condition March 31, 1951

■

"a

a

In

regulator

just

1

Dollar!"

fact that "a

sure

and

ization

President State Street

President Morgan & Cie.

Is

Insurance

the

in

Crefljt

iu'/;

2,404,019.66

f>«i

President New York Life
Insurance Company

which

r

.will

7

9ul

.' 7.

7; J

'

LIABILITIES

7'7-'

•

prior to 1933. The year 1951 finds
it an even cheaper dollar.
Thomas

Chairman

Former

Federal

the

Nov.

on

the American

"the horde

people that where¬
of wage, price and
restrain

inflation, they conceal its
The

source

inflation

has

money
are

of

every

invariably

supply.
not

a

.

.

source.

great

been
.

in

Direct

substitute

for

All

Other.:,.....,

14,119,141.69

Accounts

Payable, Reserve for Taxes, etc..

'

:■'

$657,548,024.55
5,375,506.80

..

Acceptances Outstanding and Letters of
Credit Issued

19,911,808.99

President Continental Oil

Company
GUSTAV METZMAN

Capital..

20,000,000.00
;

Surplus

30,000,000.00

;

Undivided Profits

12,635,454.38

President New York Central

$745,470,794.72

Railroad Company

JUNIUS S. MORGAN
Vice-President

ALFRED P. SLOAN, JR.
'

Chairman General Motors

Corporation

United States Government obligations and other securities carried "at
$132,479,068.95 in the above statement are pledged to qualify for fiduciary
public monies as required by law, and for other purposes.

powers, to secure

JAMES L. THOMSON
Chairman Finance

Committee Hartford Fire
Insurance

Member Federal Reserve

Company

JOHN S. ZINSSER..

,,

...

System

Member Federal Deposit Insurance Corporation^y! w\'

Chairman Sharp & Dolime Inc.

strong fiscal, monetary and credit

.

" "V

526,252,545.28

Official Checks Outstanding

Vice-President

L.F.McCOLLUM

B.

Reserve, in an
15, 1950, warned

other direct controls may

.

■

$117,176,337.58

Deposits: U. S. Government

'

59.06-cent

a

was

THOMAS S. LAM0NT

dollar in terms of the gold dollar

them.

.

VVAmtWMi-rtri-w
•fijHC'} ti

Incorporated
DEVEREUX C. JOSEPHS

and

rapid

1949 in terms of the 1939

cents in

controls

Interest, Accounts Receivable, etc.^

iliiUfif/fiuMmym°#'mAfPSnO0 9f{J lO'l

V

:

Vice-President

Chairman Morgan & Cie.

loss in purchasing power
of the dollar, the loss being 40.9

the

of

Vice-President

Institute
forth

sets

the

form

startling

.

5,677,539.20
244,442,904.89

;

v..........

CHARLES D. DICKEY

steady

.

Lial

Chairman and President

The B. F. Goodrich.Company

H. P. DAVISON

... ,....

>'

Bankini0puscyi^'^i\^m;,i31)00,000.00

JOHNL. COLLYER

Facts—How

Dollar?"

a

Life

as

1,500,000.00

{including Shares

N.D.JAY

"Graphic

its

address

63,818,136.85

Accrued

despair is the steady

168,798,438.01

of the Federal Reserve Bank..........

CHARLES S. CHEST ON

America's

to the
road to demoral¬

'

Municipal Bonds and Notes......

Loans and Bills Purchased

Incorporated

points

$231,482,787.12

Securities.......

of Morgan Gr ehfell 4' Uo. Limited and
Morgan 4' Cie. Incorporated)....-.;.......

BERNARD S. CARTER

and

Government

Other Bonds and Securities

Investment Corporation

money."

of

Stock

V;

Hand and Due from Banks

State and

PAUL C. CABOT

.

dollar

on

United States

Vice-President

depreciation of a nation's money
and the disappearance of the ma¬

of

Cash

l.C.R. AT KIN

National Association

the

Manufacturers

of

ASSETS

President

dollar that

"Defend

plea,

a

.

>l

:y.

Chairman Executive Committee

reliable
yardstick of all market relations."

.

YORK

R. C. LEFFINGWELL

it

They only, supplement
We still need vigorous
.

.i

..

a

offices

from

J. P. MORGAN & CO.

Chairman

whose integrity

1.

greatly augmented.

honest

and

and

tisements

•"

Ideas

•

to "stop

way

Bawl

Street Journal.

Our best

GEORGE WHITNEY

As

The

Corporation, Chair¬

W.
of

DIRECTORS

.

this

date

the Publication Commit¬

of

man

,

terms

corner.

purchasing power
of the dollar is a very complex
and increasingly
difficult prob¬
lem in the dynamic world of to¬
day.
Complete
stabilization
is
theoretically possible only in a
static society.
domestic

the

to

Day.

will be June 8.

year

management, in order
may make its maximum

of

feature

a

Field

proper

on

bilization of the

Time is running out

the

dollar

a

monetary sta¬
restlessly
the bench

move

very fast.

gold

of

eyes

the

measures

as

A

in

totalitarian

line in the coffin

gold.

Fourth:

world.

the

fumbled the ball

today, by Act of Congress,
of 13.714 grains of pure

The

the

in

value

value

of

consists

Second:

of

even

the United

In

standard

in the

—questioningly—from

of

the world

discussion.

First:

All

standard

dollar

der

space

author from

the facts

disaster.

nations where personal freedom is
unknown.
And
throughout
all

the

Conclusions

football team that has

a

dium of the world

that

true

Furthermore,

except our "plan¬
gold is still the un¬

countries

is

recognition

States

serious.

more

for

gold is the standard of value that

present

.

measures.
p.

of

standard

our

is doomed. As Mr. McCabe stated:

:

for the United States

hour
as

its

economic and political system

our

McCabe of the Board of Governors

"The gold dollar is the ultimate
and legal standard

this

loses

is to stop it."

certain

a

as

Much

develop¬

seems

questionable that the "inability to
Tedeem

of

last

has ''stated

certain

most

In

current

the statement

all

in

ners,"

ignored.

is. been fumbling the ball continu¬
of ously and suffering disaster after

management

everyone

crisis

realize

terial and moral benefits of sound

Convertible

Currency
In

at

are

author that he wants

model state

a

Utopian

have hard

a

necessity

to

that if the dollar

beyond
reproach.
Professor
Theo
Suranyi-Unger writes the

Jbe much

that

such

questioned

is

commodity of universal de¬
mand, such as gold, is likely to

Such

to

fact, known apparently to al¬

most

been

emergency calls for a return
"fundamentals"—a certain de¬

con¬

to make it painless.

way

dollar

political conditions

as

far

the

cision for

come

it" is to restore confidence in the

price level anchored

by any such mechanism
of the
commodity dollar.

to

dollar
honest

an

HENRY C. ALEXANDER

no

The

a

would

Leffingwell

with drink, the cure

as

more stable and depend¬
able than a price level controlled

the

.

standard of value,

in

the

to

ing the
Perhaps Congress, too, will

is

.follows:
j

more

ARTHUR M. ANDERSON

quickly.

controversy

once

currency.

is

result

Amer¬

us

Basic

Vice-Chairman

"monetary and fiscal doctors"

merer

dishonest

a

consequences

Mr.

The late Professor E. W. Kem-

do not face realities

factors

thus: "Inflation is the most deadly
of all economic diseases.
There

,^'bleedings" can destroy the in¬
tegrity of our dollar by our modwe

real

steadily destroy¬
integrity of our dollar.

ultimate effects of "a rubber dol¬

in

I.

the

been

since

ever

the

upon

lar."

to the constant bleedings
by the doctors in his day. Similar

iif

our

give

the

obscured
have

Third:

Currency

and

have
that

citizen," who has thus far found
it so difficult to comprehend the

death

fern

is

much
our

money.

becoming obvious to "the average

of

yielded

there

do

integrity of

tinuing loss of confidence in the
dollar and in its integrity.
The

increasing

constitution

forced

The

reckon.

now

Dishonest

a

ican

threats and dangers to our dollar
are
all
factors with which we
*must

citizens."

government

has

1933

insurance

the

to

Have

tion—our

tary and credit "assets," the abil¬
ity to monetize our huge national
'debt,
and
the
indifference
of
''executives

their

of

by
subtle changes in our yardstick
or
standard
of value—by infla¬

"ob¬

any

important part of the

an

monetary

-

;l' Our inability

continuing

a

Through mismanagement of
and fiscal system,

-monetary disorders sufficient to
*make metallic standards seem like

-stability.'"?

By

of inflation, governments
confiscate, secretly and un¬

can

tively imposed restraints and self
^restraint has generally proved so

^inadequate

...

process

of inconvertible

are

there

'paper

The proc¬

engages all the hidden forces
economic law on the side of

ess

.

statements

would

economy

hope. At last the seriousness of
our
plight is causing some light
to break through the clouds that

has

able currencies."

late

Lord Keynes agreed with Lenin
that
"there
is
no
subtler,
no

..

such

railroad bed would

a

wrecks

How

dollar?

a

its

protect

we

on

the

with

faced

are

question, what is
can

and from
assets—is so

monetary

tic

restore the

37

>.!'

se¬

in

38

(1462)

The Commercial and Financial Chronicle

saying/nothing,

are

4)

Tomorrow's

~

*

Markets
Walter

can't Continued from

I

4

page

or

make them talk.

ture. At the

*

*

time I think

same

of the fundamental

simply ideal if one could be sure of
opened at 10 and closed at 3 buying at the bottom. I can't
and that was that.
give such assurances. Here
market

and

there

stocks

are

The

which'

CED

has

add

Here is the program:

these

such

,

{The

/

views

give you examples but
they would only clutter up
your thinking and probably
can

wouldn't
way.

.

convince

you

#

#

'Jfi

The
the

major buyers today are
investment trusts,, open

and

closed-end.

Most

of

formula

method, some are
haphazard depending on daily

sales

of

Still

units.

others

delaying factors that
buying for any¬
from 60 to 90 days.

postpone
where

:Js

kind

$

.

••

.V

do

i\i

,

«

excited

buying that:

in ribbons

out

tapes, that

once

the

on

Placed
it

said

barometer

a

for

come

the

of

things to

immediate

fu¬

ture, it is non-existent.

f

$

^

\

\
*

/

■

.

leaves
do

in

you

so

a

markets.

terpret them.

be

later.

sold

Co.

ferred
if

stock

needed.

The

$5,000,000 of

will be

pre¬

placed later

;v

,

expansion program of The
Graphite Bronze Co.

Cleveland
calls

-

for

establishing

five

branch plants as soon as
be

located

curity, and
effect
is

not

in

reasons

possible,

small communi¬
of dispersion,

se¬

supply. The
expansion program

manpower

the

of

new

*

1.

•«..

•

'!

company.

A

the

Plaqt

savings

The

ROCKFORD,

Chronicle)

111. —Robert

E.

Crumb has become affiliated with
G.

Trust

Lewis

&

Co.,

Rock-

Building, members of

..

.•

.

OPTIONS

Republic
U.

Members
York

Curb

Stock

Exchange
Exchange (Associate)
San Francisco Stock Exchange
Chicago Bgard of Trade

New

14

Wail

Street

COrtlandt

Private

San

7-4150

S.

Wires

^ .Teletype
to*Principal




ting

the

better.

for

budget

minimum

to

seems

budget
that

us

of

production.

should

be

be

training

be

an

for

program

and

expanded

old.

both

Hours

should be lengthened.

of

new

work

We should

encourage the use of substitutes
for
scarce
materials.
And
we

should

increase

imports

our

in

to take advantage of for¬
eign countries' capacities to pro¬
duce
things
we
need.
Higher
production will enlarge the sup¬
ply of goods available, bringing
it closer to demand. But this takes

time; the increase of' production
is essentially a
long-range pro¬
gram.
By itself, it cannot do the
job of curbing inflation.
need short- and

cial

We also

long-range finan¬

policies.

The

second

point in the CED
has to do with the Fed¬

program

eral

budget.

leased

We

policy

a

have

just

statement

in which

outline

we

for

the

begins
to

out

fiscal

a

pro¬

year

July 1.

on

dwell

some

and

second

at

"pay-as-you-

a

third

1952,

which
I should like

length
points

on

the

of

our

program.

The

the

-

expenditures

and

should be' reduced by
$6 billion from the $74 bil¬
proposed for fiscal * 1952 in

President's
I

curred

in

we

thinks

have

were

billion

posal,

has

surplus.

proposed

Be

our

calls

for

by

the

the cash

the

a

fact

that

surplus in
Now we face

nancing.-. According to the Presi¬
dent's budget, the cash deficit in

June 19

200.00

fiscal

June

437.50

lion if

May

7

100.00

May 18

225.00

Fran.@28%May
or

Explanatory pamphlet

3

75.00

price change
on

reauest

Members Put & Calls Brokers & Dealers

Association, Inc.

Broadway, N. Y. 4, Tel. BO 9-8470

we

summer

will be

to

deficit fi¬

about

do not cut

$13 bil¬

expenditures

and raise taxes above their
pres¬
ent levels.

recom¬

Federal

I noted that CED thinks
expen¬
should be cut about $6

billion.
be

The.y should.

unrealistic to

But it may

expect that this

In

billion

excises.

of

$1.1

obtained

be

by

tax

automobiles

on

the tax

to 25%
other

from

refriger-'

on

sets

and

household

equipment.

radios,1
durable

Output of these prod¬

ucts will have to be curtailed be¬

cash

of

cause

heavy

for

be raised

as

taxes

If it is promptly enacted

the

defense

require-'

materials

all

others.

How

taxes

can

on

by increasing the excise
liquor, tobacco and gaso¬

line, the main revenue producers
among
the existing excises.
In
addition, we recommend a new

it will prevent a deficit this spring
summer when we are
strug¬

tax

of

not

now

5

cises.
such

that

which

of

for many years.

us

it has become acute

greatly

4>ur

in

enlarged

But
view

defense

would

requirements.
The
to

CED

this

First, taxes

are only one element
in the necessary program for con¬

trolling inflation.

The five-point

program
we
propose
assigns to
high taxes their necessary role
in checking inflation in a period
of rapidly rising defense expendi¬

tures.

But

it

does

not

expect

high taxes to compensate for fail¬
of the government to tighten

ure

its

belt,

own

will

have

the

as

to

do,

of

rest

or to promote
private sav¬
Second, different kinds of.
taxes differ greatly in their effects
upon
inflationary pressure and *
upon
production.
The kinds of
taxes that are imposed this year

ings.

will

have

great

a

effect

the

on

impact of taxes against the growth
of production.

other

to

of

tax.:

goods

affected by this
clothing and house;
The tax would also
This

goods,

sales tax--

.new

yield the government $23A*
/.

Finally,

•/'

\...

believe

we

ty•

•

there'-

that

should be further study and action'
to

plug the loopholes in our tax*
system that favor some taxpayers•
against (others.

as

The
higher;
get, the greater the inequity
loopholes - produce. If this*

taxes

these

study would take too much time,
however, we believe the rest of'
the program
should be enacted j

promptly, with loophole plugs to*
later.

come

credit

certain

applied to second-hand

us

control

to

or

food, housing,*

difficult

billion.

problem lies in two facts.

ex-'

exclude-

be

sold at retail.
would

believes that the key

items

be

furnishings.
be

as

categories

would

of

Federal

would

and

are

main

sales

to

tax

utilities

The

tax

subject

necessities

items

seriously impeding, the
growth
production? This problem has

retail

on

This

fuel,

play

their necessary part in restraining
inflation without at the same time

/

'.This tax program takes into ac-t
count
the
fact
that
corporate'

taxes, which actually fall with
unequal weight on the real peo¬
who actually pay them, are1

ple

bad

the

$1

and are close to "
safety already. The

by nature,
limit

of

billion

addition
fiable

we

to

recommend

the

as

is

burden

an

justi-.

only by the existence of an'
We have also taken;

emergency.

Tax

Where

Objectives

should

note

raise

we

the

money?

In deciding on its tax
recommendations,
the
CED
set
three objectives. There should be
a

fair distribution of the tax bur¬

den.

There

restraint

should

nally,

to

minimum

be

production and maxi¬

on

restraint

mum

be

inflation.

on

should

the

1951
its

exert

impact

on
restraining
expenditures.

tion

the light of these

In

after

with

combination
that

we

First:

emergency

For

tax

come

we

5%

.the

of

best

needs

individual
an

after

in¬

present

exemptions have been taken and
present

This

would

is

This

a

tax

has

been

paid.

raise

now

available for further taxa¬

cut will be made. Experience says
otherwise.
Rather
than
risk
a

tion

after

the

deficit by proposing to raise taxes

paid.

A flat increase in the rates

,

is

that

of

the

danger'

higher

tion.

Excise

huge
will

life,

taxes

remainder.
not

theyr

apply,
the

to

under our pro¬
basic necessities of

as

food, they will not

such

affect

the'

tap

can

Because

the

more

than

rich,
since
the poor
greater proportion of

their

comes

poor

items

on

the

spend

a

in->

that will remain'

untaxed.
1

Credit Control

This' brings- me:< to the next,
plank in the CED platform, the;
*

month

of

credit.

In

the

past

the

opportunities for re¬
straining
inflation
by reducing»
the
availability of credit have
been

enormously broadened. For there is
flexibility in the market for gov¬
ernment securities.. The Federal.]
the first time in 12 years,

$3.85
billion.
simple and fair way to * Reserve

take account of the fact that what

is

fact

marginal*
rates on personal incomes is se¬
vere.
The Treasury estimates that'
only about 37% of the total per-;
sonal
income
expected in 1951 "*
will be subject to income taxa-*

control
in¬

addi¬

the taxable

on

remains

for

the

of

incentives

in¬

tax

revenue.

recommend

tax

that

come

objectives,

think would

temporary additional

tional

consump¬

considering the alter¬
Committee carrie up

the

serve

in

to

tax" gram,

main

our

a

creases

Fi¬

effective

most

inflation,

program

the

ditures

taxes.

20%, and by raising from

and

prompt

budget for fiscal 1952

whole.

a

and

budget.

this

1952

would

to

ments

natives,

a

from

revenue

10%

budget be at least balanced in the

in¬

the

excise

used in
coming fiscal year. On the basistheir manufacture.
Higher excises
of the $3 billion minimum expen¬
on them will
help reduce demand
diture
cut,
CED
recommends
for the remaining civilian sup¬
prompt enactment of a $10 billion
tax increase, which would balance plies.* Another $1.4 billion would

oc¬

the

cash

with

ators,. television

third pro¬

CED

The

that

has

of

recommendation

call for $5V4

we

new

Increased

to

me

increase.

tax

mends

The

a

shift

do

to

sum,

;

third

excise

Should

which

budget.

spite

tax.'

7%
Taxes

described

enjoying

The
in

be

defense

raising the present manufacturers'-

$74

checking

CED

would

new

the

re¬

137.50

THOMAS, HAAB & BOTTS
50

CED's

President.

called

Emergency Tax Program for

tax

this

to

billion

in¬

should

ex-

com¬

goal for expenditure cutting
be to lop $3 billion off of

now

for

as

ditional revenue.

an

would

been with

program

a

profits in

on

to 50%,

recommendation* if enacted,
would bring in $1 billion of ad¬

minimum

a

bring the combined

This

the

have

we' recom¬

profits

excess

addition

of

Profits Tax

with the present 47%.

pared

this

will

we

anti-inflationary
It

than
much

so

taxation

Defense

of .$25,000

.cess

expenditure

more

amount,

Then

menace

112.50
112.50
525.00

6

in¬

•»

the

income tax rate

desirable

successful in cut¬

are

we

curbing

June 15

Subject to prior sale

Monterey—Oakland—Sacramento
Fresno—Santa Rosa

If

the

.*.@44% June 1
.@45% May 14
J..@101% June 29

Stl. .@44

Steel.

St. L.San

•

6 $425.00

Steel.

Plymouth Oil.@58
Mo.Kan.Tex.pfd@64
Yngstn Sht&Tb@54%
South'n Pac...@65

NY 1-928
Offices

Barbara

@76% June

Std. Oil N.

New York 5, N. Y.

Francisco—Santa

Per 100 Shares Plus Tax

Chrysler

Armco

York

allowance

mum

cuts.

for

and

workers

should

flation

New

fighting

New

workers

Exchange,'

SPECIAL

Schwabacher & Co.

be

to
in¬

attracted into the labor force and

can

•

program

should

expansion
capacities

there

"An

Financial

be

upper

incomes,

new

a

of

for

creased.

lion

-

national

inflation,; we need

some

on

amount of

and

go" policy in the Federal budget

to

the Midwest Stock

Pacific Coast Exchanges

government

(Special

ford

Orders Executed

reduce

should

gram to carry

Robert

Securities

steps

With Robert G. Lewis

I

Pacific Coast

to

communism

1951"

so-what-do-I-

try to in¬
When markets

taken

of

expected to take full hold

1952, according to James L.
Myers, President of the Cleveland

far all this

Drastic

order

An additional

position. However, I don't

make

to

are

until

$

: '•

I realize that

Privately

This financing was arranged by
F. Eberstadt & Co. Inc. and Pres-

ties for

as

pro¬

expenditures.

courage

announced

was

notes

•

to

But

Second:
be

increase

must

every way possible.

augurated.

today
(April 5), has placed privately
with
institutions
$10,000,000 of
3V4%, promissory notes, due in
1971, and 50,000 shares of 4%%
cumulative preferred stock (par
$100). An additional $5,000,000 of

that it's

for good.

a

We

duction in

Fifth:

The Cleveland Graphite Bronze

Co.,

heavy public or floor partic¬
ipation, is completely lacking.
Naturally this doesn't mean
gone

First:

the five points
balanced program.

sum,

to

up

Both

from

came

In

gram.

corporation
mend

with

Cleveland Graphite
Bronze Securities

major momentum, the

of

comes

£>)

is

expansion of bank

?

would

•'

For

which would

not

coincide

cott &

The

*

«

five

credit should be checked.

the

open-end
outfits are daily"
buyers. Some of them use the

have

time

any-

/•. \^

,

this

in

the

Strong?

/
gling to achieve stability in prices
Third:
Taxes should be raised
necessarily at any
and to strengthen confidence in
those of the sharply and promptly, to restrain
the value of the dollar.
Chronicle. They are presented as consumers' expenditures as well
As the CED looks at the tax
as
to increase Federal revenues..
those of the author only.]
situation, one problem dominates
Fourth: The

article

I

expressed

of

one

points
the whole job, but each
essential to an adequate pro¬

points.

from

No

do

can

do much while the^

can

general market is in a leth¬
Instead of rallying
argic or down-state.
But if
levels, they fall
you've got patience, you might
asleep, which, in present day
look into these stocks.
markets, is not a bad sign.

V

five-

point program for fighting infla¬
tion.

the full

This leads
a

Second:

expenditure reduction, we recom¬
mend
raising taxes
enough
to
balance the budget after a mini¬

weapons

proposed

of what

to be resistance

with

CED's Program

show some minor up tenden¬
Actually what's been hap¬
cies.
Technicolor
is
one;
pening almost daily is a series
of slow, draggy reactions with Cooper-Bessemer's another. I
doubt, however, if either of
new stocks
reaching a level
seems

bracket

the Treasury.

only enough to balance the budget

against inflation is pretty good.

.

.

eacn

groups, who already pay a
large share of their income into

How Do We Keep
Our Economy

Says—

The

in

tax

come

\

they'll be lower before they
get higher. To operate in such over prices and wages. The fun¬
a
market requires some de¬ damental, constructive measures
that would have been necessary
By WALTER WHYTE i
liberate
planning.
One if we had decided not to impose
If you're looking for whole¬ method is to buy part of a price and wage controls are still
hearted enthusiasm about this potential line at current prices necessary. Price and wage con¬
trols alone, if they did not break
market,
better
turn
else¬ and additional buying at a down
altogether, would merely
where.
It isn't that I think later date when prices get
suppress the inflationary pressure
lower. Another is to do noth¬ that underlies the economy, and
prices are headed for the cel¬
lar.
It's
because since last ing at present but wait for the we would once again see a great
upward surge of open inflation as
week
they haven't. shown lower figures.
soon
as
the
controls
were
re¬
*
*
*
moved.
anything to become either en¬
Fortunately, the outlook
The latter method would be for the adoption or continued use
couraged or discouraged
about.

Thursday, April 5, 1951"

extremely harsh for the

Basically, I think prices
will be higher in the near fu¬

Whyte

;%

.

the

income

present

that is left
tax has been

System, which has Lhe
responsibility
for
carrying
Out
monetary policy, has had its hands
tied by a commitment to support
government
bond
prices.
This

mmmitmpnt

has. fortunately

been.'

,

,

Volume 173

Number 5000

.

The Commercial and Financial Chronicle

.

.

modified.

fundamental controls have

trol of

manent

- Through
effective con¬
credit, the Federal Reserve

check

can

the

increase

the

in

supply of, money, which is one of
primary sources of inflation.
Until the" recent agreement be¬

/the

tween the Treasury and the* Fed¬
eral Reserve; the possibilities for
.•controlling private borrowing
were
severely limited. Selective
.credit
controls
on
instalment

.

-buying and real estate were about
the only controls over borrowing
•

that

in effect.

were

Desirable

as

;they are, they can do only a.small
.part of the job at hand.
(

Now, the broad control of credit
;in general can be a potent force
for economic stability. When the

r

♦Federal
•

•

Reserve

to

forced

was

support the prices of government
securities at par or above, by buy-

ring, securities in the open market
there was selling pressure,
each, purchase of a government

•when

•security
the

from

Now

tem.

System

.

Federal

the

is

longer

no

obligation

.

increased

bank

a

of the: banking sys¬

reserves

to provide

Reserve

under

rigid:

an

sup¬

If sell-

port for the bond market.

'ing : pressure develops, the prices
;

of

.

rates will rise

the

the

will

bonds

as

will

bonds

Interest

fall.

prices drop, and

become

more

at¬

tractive

holdings;
If credit ex¬
pansion. persists despite the de¬
cline of bond prices* the Federal
Reserve has the •; power to sell
•

j

from its

own

-

holdings

;that

these

.

•

re¬

..."

Monetary Flexibility

:

■

the

be

loans, will

.

gov¬

by

bought

are

.banks, bank
strained.

-

more

To the extent

ernment securities.

\
-

■>

Monetary policy has the great
advantage of flexibility. It takes
a
long time to enact a tax program*
andr even longer ior the
the taxes to be felt in

effects of

.

the

•„

monetary

But changes in
policy can be made
quickly. ? For example, if * a sud¬
den change from inflation to deflation should develop, the api propria! e
monetary policy could
.be immediately established. Mon¬
etary policy shares with tax and
budget- policy the: virtue of: im¬
personality.
Unlike direct controls,
these indirect and? more
economy.

•

•

•

>

a

The

per¬

place in the free economy.
They do not dictate the terms of

(1463)

fifth- point, in
for

the

recommendation
financial

is

program

CED's

balanced

a

national
savings.

a

the multitude ofv individual deci¬

Another

public

responsibility

has

to

you

pressure

Pressure groups

groups.

There is "a. special job here f&r
gentlemen. An advertisement

the

of

with

do

are

gets; to the public directly.

bene¬

Ad¬
people
to
they speak.
They have a
responsibility to publicize more
than the products they have: to
sell.
No group is better equipped
to bring to the public a better
understanding of our economy,
our society, and our political in¬
stitutions.
Advertising is done
by
business.
However, of all
groups in the nation, business* is
probably the least understood by
the public, and the least trusted.

ficial as long as they operate in
campaign to encourage
Anti-inflationary policy requires the interest of the public at large
Instead, they establish a* climate- an effort to keep the community as well as that of their own
in which these decisions may be as a whole from trying to buy members.
Today, however, many
made freely. They encourage or more goods and services: than are pressure
groups are thinking of
sions

that

makes

discourage
financial
expansion, available. In this effort the gov¬
but they do not prescribe the ernment has certain: clear respon¬
channels through which economic sibilities. It must economize in its
activity shall flow. The CED has own expenditures, raise taxes and
always believed that the basic tighten credit; But the action of
tools
for
economic
stabilization private individuals can make the
these

are

controls.
to say

will

think

it

is

too

flatly that monetary policy

now

come

into

its own,

developments
of
the
month are most encouraging.
cently issued
untary
this

a

control

to

A
tion
the

re¬

plan for the vol¬
of credit. Under

credit

can

be

useful:

a

We

should

enlist

commu¬

of many forms of saving de¬
vices. The national savings pro¬

should encourage all forms
of saving.
gram

commerce,

control•

bring home to
people their responsibility to

one

loans that' are not essential
defense effort or to the

agriculture
and industry.
I believe that an
effective
program
of voluntary

is needed; to

nity leaders to help in this pro¬
gram.
The government should
start an aggressive, savings bond
drive. But savings bonds are just

the

of

are

to

,

To make the program a success,

than

more

an

educational

pro¬

it

is

expect

reasonable

to

get, and

for

they

unyielding in their demands.

This is having a harmful effect

the whole nation.

on

In the present
situation it is essential for all of
to

we

national'program.of educa¬

save.

program

needs

than

more

them

find

make

.

sacrifices.

This

Instead,
seeking to
improve their positions at. the
expense of other groups.
Every¬
one seems to be willing for others
many

the more; basic
of credit I have

1948

the

GED

recommended the

The
will

to make the sacrifices.

in the

more

to

the

of

strength

For the past decade or
threat to stability has
come from
inflation, and! as we
enter the mobilization, period, it
is clear that our efforts to fight

the

•inflation

must

point program
flation.
into

the

program

will

make

toward greater economic
SECURITY TRADERS ASSOCIATION OF NEW YORK

Security Traders Association of New York

(STANY) Bowl¬

ing League standings as of March 30 are as follows:

na¬

stride

great

a

in¬
put

is

effect, I believe that the

tion

I

five-

CED's

for checking

the

If

redoubled.

be

discussed

have

to

..

reached

much

alert

an

and

sooner

stability.

But'this program cannot oper¬
ate
in
a
vacuum.
It will
be

citizenry.
We are not lookirig
complete stability.
Our goal

for

is rather, to achieve

needed

is

is restraint on

the part of pressure groups and a
more

bility

vocal and

economically edu¬
cated general public.
The vital
decisions

men

in

that

the

by the
should be

government

made of general interest,
unreasonable concessions

with
to

for

economic

and

social prgress that have made us

made

are

much sta¬

as

without damaging

as we can

incentives

the strongest nation in the world,

without

and

no

dom

any

of

impairing the free¬
people

our

has

which

made this incentive for improve¬
ment

possible.

limits, it is in
goals

any

we

W i th i
our power

n

these

to meet

set for ourselves.

The Public National Bank
AND. TRUST COMPANY

NEW YORK. of
Main Office, 37 Broad Street

CONDENSED
OF

STATEMENT

CONDITION
March 31,1951

RESOURCES

adequate only if the government
public meet other, largely
non-economic responsibilities. The

Cash and Due from-Banks

•

State and

•

•

•

«

•

#

•

.

.

...

Municipal Securities

Other Securities

.

$134,203,107.50;

•

.

•

U. S. Government Securities

V

.

.

.

.

.

.....

•

•

19,945,028.55-

•

.

•

Loans and Discounts

.

.

...

66,282,347.64

•

F. H. A. Insured Loans and

Mortgages

6,041,665.04

258,206,755.7*
19,692,491.40

.

Customers' Liability for Acceptances .

•

Stock of the Federal Reserve Bank

•

5,009,749.83?

•

•

Banking Houses

.

.

.

.

•

•

.

Accrued Interest Receivable

720,000.00:

2,302,630.89

.

.

.....

625,820.47'

and the

Won Lost

TEAM

Greenberg (Capt.), Sullivan, Stein, Wechsler, Siegel-

(Capt.), Weseman, TisOh, Strauss, Jacobs—

Kumm

Goodman

Donadio

(Capt.), Casper, Valentine, M. Meyer, U. Frankel
(Capt.), DeMaye, O'Connor, Whiting, Work-

15

15

14

10.

(Capt.), Lytle, Reid, Kruge, Swenson___—
(Capt.), Manson, King, Voccoli, G. Montanyne__
Mewing (Capt.), Klein, Flanagan, Manney, Ghegan_____

11:

12

i2;:

12

12

(Capt.), Krasowich, Nieman, Pollack, Gavin—__
Bean
(Capt.), Kaiser, Growney, Gronick, Rappa__^__—
H. Meyer (Capt.), Bmith, Farrell, A. Frankel, LaPato_—
Serlen (Capt.), Gersten, Gold,' Krumholz, Young
Krisarri (Capt.), Bradley, Montanyne, Weissman, Gannon

10

14:

10

14

10

14;

Leone

jack Sullivan

15

8/ 16'

(Merrill, Lynch, Pierce, Fenner & Beane) had
being hotly contested and the result

tie for first place. ';

• -

mass

of

men

to make their wishes

Thomas

made by

Graham, The Bankers Bond Co.,

Democratic
Graham

first -award

the "Man of
the
Party-during the /year ,1950. Mr.
a past President of the National

is

■

,

the

is

real

i

v o

c e

not

of

heard, it is
time to make some changes.

tion.
ness

as

governor

void.

of the Investment Bankers

its President

in the past.




But there is

that

There

spiritual
political,

a

new

something

the

high
The

as

to

are

well

be

aware¬

is

wrong.
time to fill the

This is the ideal

As¬
sociation of America.. He is an active member
of the Bond Club of Louisville having served
a

,

T-

•

rr

•

$513,311,131.83

.

•

Surplus.

.

.

•

#

♦

.

•

.

•

$10,587,500.00
13,412,500.00

•

24,000,000.00
Undivided Profits

8,993,028.42:

April 2,1951
.

.

.

.

.

.

.

.

.....

several

as

things,

economic and

done.

This will

tak^ time, but it will be time well
Graham

spent.

...

302,500.00
1,853,082.78?

•

Reserved for Interest,Taxes, Contingencies

Acceptances

,

.

•

.

•

•

Less: Own in Portfolio

•

$6,353,812:19

.

5,582,347.85

824,094.54

5,529,717.65:

Other Liabilities

Deposit?

#

....

706,494.08;
•

.

•

•

466,343,961.05.

•

$513,311,131.83
United States Government Securities carried at
are

$19,792,235.81
pledged to secure public and trust deposits, andfor other
purposes a* required or permitted by law.
MEMBER: N. Y, CLEARING

HOUSE ASSOCIATION

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION

25 Offices Located
Thomas

$32,993,028.42

.

developments, of course, apply to
only a small fraction of the na¬

who has contributed most to

Security Traders Association and has served
as

Capital

Unearned Discount:

people

'

LIABILITIES

happening in the complex modern

government itself, and the
revelations of corruption outside
of
government" have
put
the
American people on edge.
These

the Mose Green Club as

Year"

the

I,qiu<f7-'

281,534.77.

.

.

'h

worlds

■

.

.

r'.id.r Hi.,

Dividend; Payable

the

•

V;--

.

understand what is

heard and to

developments in certain parts of

CLUB OF LOUISVILLE

Louisville, Ky. has received the

'

-

.

developments is a-failure of the

highly publicized petty and sordid
BOND

.

.

result of these social and political

A

The Second Half race is

of today is a triple

today our society has become
highly
institutionalized;
Large
organized groups exert pressure
directly
on
government.
The

When

high game of 221,
as

9

.

people.
That is the key to the
greatness of our democracy.
But

—_

Burian

.

Government is respon¬
sive to the expressed will of the

13

meister
Hunter

Other Assets.

American

15

if

educated

our

economy.

so,

adver¬

deal

goal of economic stability

be

have

we

power

threat

distant future.

.■

that

great

a

What

ceed

the

do

Restraint by Pressure Groups

only, if we fully understand
of the forces which
etary Commission. We haye again could defeat us. Fortunately, our
made this proposal in our latest
economy is resilient and flexible
policy statement; We believe that enough to; be placed under the
such a commission, established by stress of sudden changes; of di¬
Congress and including both pub¬ rection.
This has been demon¬
lic members and qualified private
strated time and time again, and
citizens, would now be very use¬ it gives us confidence that: our
ful in studying both current and
economy can not only do all that
long-range policy questions. Ob¬ is expected of it, but more.
jective study, leading to greater
The big enemy at home today
public understanding of the issues is i n f 1 a t ion.
Instability is £
involved, can contribute to more
continuing problem of a demo¬
effective monetary policy in the
cratic
society and a
constant
present inflationary situation and
establishment of a National Mon¬

the

situation

a

can

change.

gram

persisted for a number of years. rience that inflation erodes the
of
the
past savings - it
The disagreements in the field value
have, hampered effective opera¬ worked so hard to make.
tion of monetary policy, and the, : Our efforts to mobilize quickly
public has been left confused. In our economic strength will suc¬

is

tisers

groups

is needed, however.
We one part of the public. The longneed a clear, consistent and bal¬
run effect of this sort of mature
anced national policy against infla¬
just outlined.
It can help pre¬
cooperation will be beneficial to
vent the granting of inflationary tion, a policy that will convince
all of us.
loans.
' : '
; 1 the public that all of the necessary
:
Differences
of
against
inflation
are
opinion about weapons
For the
moneiary policy and the manage¬ being brought to bear.
ment of the national debt have public has learned through expe¬

supplement to
general control

know

whom

nothing but their own short-run
interest.
They are demanding

us

bankers, insurance
companies and investment bank¬
ers are called upon to avoid mak¬
ing

and

success

Savings Must Be Encouraged

but
past

The Federal Reserve Board

between

failure in this effort.

early

the

•

difference

indirect

non-coercive
I

vertisers

the'market:

up

39

Throughout Greater New York

40

The Commercial and Financial Chronicle

(1464)

.

.

Thursday, April 5, 1951

.

'

Continued

from

5

page

*

*

-

The State of Trade and
of

placing all

programs

on

-

v

.

Industry

DO-rated basis, is expected to be

a

1950 and

1949

when 198 and 216 occurred, respectively.

Failures

dropped 56% from the comparable level in prewar 1939.
Failures with liabilities of $5,000 or more numbered
the week's

104 of

This size group

total.

declined from 127 in the pre¬
year ago.
Small casualties, those having
liabilities under $5,000, dipped to 32 from 43, but were the same

vious

week

166

and

a

in 1950.

as

pretty much determined by that time.

Scheduled to Drop Moderately This Week

Whispers of inventory trouble, barely audible a few days ago,
a steady murmur this week, according to "The Iron
Age," national metalworking weekly.
The biggest trouble spot
in the metalworking field is in consumer durable goods.
Bulging
inventories of television, radios, appliances and hardware have
been noted for several weeks.
Early hints of an inventory reces¬
sion were based on fear of what might happen as a result of over¬
have risen to

extended credit..
For

tributors

v

were

insuring themselves against shortages expected later
this year.
Many of them borrowed money to do this and now
find their shelves loaded while manufacturers are still turning
They

out

torrent of consumer
is

It

that

true

goods, this trade authority adds.
buying in recent weeks has

consumer

disappointing to some, but it is still at a pretty good level with
improvement expected in the months ahead—spurred by defense
spending now at the rate of $5.5 billion per month.
Inventory fear in some consumer lines is not reflected by
slackening of demand for basic materials such as steel and
metals, this trade magazine points out.
Consumer
for more is still intense.
Even manufacturers making
products reported to be overstocked have shown no inclination
to turn" down their quotas of scarce metal.
The
controversial DO-97
priority for maintenance, repair

index

The

practically inoperative as applied to steel—
The National Production Authority

excesses.

refer DO-97 orders calling for ex¬
& Steel Div. of NPA.. Several mills

lias advised steel producers to
cessive tonnages to the Iron

already groaning under the weight of these orders have indicated

they are doing just that.
Steel people consider
itself from

an

One mill received an order for 1,500 tons of nails; an¬
shocked when asked to take an order for hot-rolled,

mildly.
other

to extricate
a new MRO
remarkably strange, to put it

NPA's action a stopgap
impossible situation pending draft of

Some of these orders were

order.

was

sheets equal to the

the

represents

foods in

31

general

total of the price per pound
its chief function is to show the

sum

and

use

of steel

check

indicates that they are

consumers

generally not being hit as hard by the defense program as some
people believe. It is true that regular steel quotas of many con¬
sumers
have been slashed more than half, but most of these
consumers
have been able to obtain some defense or essential

V-;"-*.; :

civilian work, "The Iron Age" observes.
Overall employment figures and steel
ment data

The

daily

wholesale

commodity

price

Mildly Upward

index, compiled

by

January budget projections
changed timing of

duction

and

increase of 30.0%.

Activity in grain markets
week.

Following

irregular

sharply reduced scale last

was on a

movements,

grains turned

most

up¬

closing sessions and finished with moderate net gains for
There

Winter

was

continued lack of moisture in the South¬

a

wheat

region and dust storms

in

reported

were

were slightly firmer at the
lagged and new bookings continued
fairly good stocks.
The actual
cocoa market was firm; futures were slightly easier in the absence
of buying support.
The domestic raw and refined sugar markets
were
quiet during the preholiday period with prices mostly
steady.
Coffee futures trended higher during the week; the spot
as

directions

shipping

small

most

held

still

users

market also displayed a firmer tone.
Trading in lard was con¬
siderably slower last week; prices averaged somewhat lower
despite strength shown in vegetable oils.
Hog prices fluctuated
unevenly with a late rally failing to wipe out early sharp declines.

cattle

The

market

ceipts, v/hile slaughter
reach

firmer

somewhat

was

lambs

on

ing

unless

continued

Cotton futures moved

planning

be
the

must

now on

relatively light

their

re¬

its

in¬

are

revenues

(3)

and

that

1952

defense

will

be

costs

far

greater
than those for 1951 and that they
will not reach their peak before
time

some

These

in

fiscal

1953.

year

growing expenditures will

generate
which

inflationary

pressures

adequate tax policy
help to restrain.
an

"The

tax

unfolding.

are

required

they

not

are

overall

Feb.

on

known

taxes

program

for

.

the

under

and

The
addi¬

defense

be determined

can

time

5

today.

requirements

tional

goes

on.

preparedness,
forward

•

Our

however,

and

required

now

the

tax

only

financial
must

go'
legislation

should not be post¬

poned.

irregularly with most deliveries closing

The full needs

known

not

were

as

legislation

can

should provide for the needs

now

that

to

of the

upward

trend

a

by additional tax legisla¬

fiscal

in

all-time high prices.

new

re¬

any

to which

faster rate than it will be collect¬

Flour prices

parts of the belt.

many

close;

the program

in

revenue

our

tion;

week, but turned higher at the close to finish at 325.63 on
27.
This was a slight rise over the 324.67 of a week ago,
compared with 250.47 on the like date a year ago, or an

"This

Committee

is well

aware

emphasis I have placed on
the financial strength of the gov¬

at the

ernment

a week ago.
Spot prices remained unchanged
ceilings. Activity in spot markets increased slightly.
Re¬
ported sales in the ten markets totaled 114,000 bales, against

•

easiness shown in

The

profit

taking

beneficial rains

over

Continued

a

late

and

dealings

liquidation

was

attributed to hedge

stimulated

by

reports

of

and

reports

of

war

news

from

to

hold

Korea

resistance to current prices for cotton goods also tended

prices in check.
Mill buying of the staple was only
Export demand was good with a fair volume of sales

making capacity for the entire industry will be 102.4% of capacity

Daily average mill consumption of cotton during February,
according to the Bureau of the Census, amounted to 45,487 bales.
This was the third largest monthly total on record, being ex¬

2,

1951,

based

industry's

the

on

increased capacity of Jan. 1, compared to a rate of

103.5%

decrease of 1.1 points.
This week's operating rate is equivalent to 2,047,000

week

a

ceeded

ago, or a

ingots

for

castings

and

2,069,000 a week ago.

the

entire

industry,

tons of

compared

:•'

for

cotton

textiles

generally

continued

A month ago the rate was 101% and pro¬
A year ago it stood at 96.8% of
amounted to 1,845,300 tons.

The

Output Dips Further the Past Week
of

amount

electrical

energy

distributed by the

electric

light and power industry for the week ended March 31, 195U
was
estimated at 6,767,344,000 kwh., according to the Edison
Electric

Institute.

The current total

80,442,000 kwh. below that of the

was

pre¬

vious week, 855,408,000 kwh., or 14.5% above the total output for
the week ended April 1, 1950, and 1,389,682,000 kwh. in excess
of the output reported for the
•»'1

' '•

r

corresponding period two
i

v-« \t

i

t'

*/«,".»•,

.

•

,

.

f

*

years ago.
'

v

■

Carloadings Moy^ Moderately Higher

Trade Volume Proves

Disappointing

Easter Sales

as

Fall Below Expectations

current summary

of trade.

The total -dollar volume of retail sales

noticeably above the level for the similar period in 1950.
apparel, children's wear was uppermost in dollar sales in
many retail outlets during the week.
A general interest in quality
was

In

dresses

silk goods was also apparent.
The number of coats
and suits sold decreased from that of the prior week in scattered
and

communities.

The

for

demand

men's

furnishings
rose somewhat.
in the period ended

above the

year

preceding week.

*

total

represented an increase of 31,545 cars, or
4.4% above the corresponding week in 1950, and an increase of
152,475 cars, or 25.6% above the comparable period of 1949 when
loadings were reduced by labor troubles in the "coal fields.

Total

retail

Output Rises

on

Increased Assemblies at Chrysler

Combined motor vehicle production in the United States and
Canada the past week, according to "Ward's Automotive Reports,"
totaled 181,769 units, compared with the previous week's total of

(revised) units.
Ward's said that although

about

was

labor

troubles

hindered

output, other Chrysler divisions increased production substantially
last week when Good Friday absenteeism and labor disputes
interrupted assemblies.
Saturday work at Ford was a possibility
again this week, it added.
Total

output for the current week was made up of 137,661
and 33,938 trucks built in the United States and a total of

7,575 cars and 2,595 trucks built in Canada.
For

the United

States

alone, total output was 171,599 units
against last week's revised total of 167,200 units, and in the like
week of last year

133,413.
Canadian output in the week totaled
10,170 units, compared with 7,471 units a week ago.

Business Failures Drop Further in Latest Week
Commercial
March 29

street,' Inc.,
casualties

and

industrial

from

reports.

were

down




failures fell

to

136

in

the

week

in the preceding week, Dun & BradNear the lowest level reached this year,
170

sharply

from

the

comparable

weeks

of

continuing this policy through
the mobilization period.
Timely
and adequate taxation lies at the
heart of the economic stabilization
"Our present situation calls for

foresight and determination of the
kind demonstrated by your Com¬
mittee and the Congress last year

adopting two

estimated to be from

10

to

14%

Wednes¬
above

a

.

-

a
further slight decline in wholesale ordering
reflecting a continuation of well stocked inventories
lines. The total dollar volume of orders was moderately

was

in the week,
in many

above

the

of buyers

level

comparable week in 1950.

The number

attending various wholesale centers, while very slightly
prior week, was sharply below the level of a year ago.

Department
from

the

for

the

store

Federal

sales

Reserve

on

a

country-wide

Board's

index

for

basis,

the

taken

as

week

ended

March 24,

1951, advanced 9% from the like period of last year.
This compared with an increase of 11% in the previous week and
14%

for the four weeks ended March 24,

date department store sales

Retail

registered

an

increases

revenue measures

trade in New York last week reflected

a

sharp

taxes

come

which
Feb.

I

and

the

discussed,

excise

with

taxes

you

on

5th

represent
the
basic
changes in the tax structure that

are

now

"I

desirable.

know,

gentlemen,

that

you

in

are

complete sympathy witlj
desire that our financial sta¬

my

bility

be protected.
last

is

year

Your timely
proof of this.

My considered judgment can be
briefly: Defense expendi¬

stated

will increase so rapidly in
period ahead that the Treas¬

tures

the

ury's
will

present budgetary surplus
disappear quickly. While the

exact

of defense

course

cannot

spending

be

now

blue-printed, it is
clear already that within
coming fiscal year we shall

all too
the

need at least the
mum

program

the President.

what lies

$10 billion mini¬
recommended

No

one

can

by

know

ahead, and it would be

most imprudent to delay the legis¬
lation required now for our finan¬
cial preparedness."

Weeden & Co. Adds

con¬

According to the Federal Reserve Board's index, department

recommended

The increases in

the corporation and individual in¬

1951.
For the year to
advance of 20%.

traction in sales volume, dropping about 26% to 25% below the
like week of 1956.
A decline had been expected, since the' 1956
period was the second week before Easter.

already

by the President.

action
on

Regional estimates varied from the levels of a" year
ago by these percentages:
>
New
England and East +8 to +12; South +10 to +14;
Midwest and Southwest +13 to +17; Northwest +9 to +13; and
Pacific Coast +14 to +18.
•
*
'
V

DeSoto

over

was

volume

ago.

above the

174,671

dollar

day of last week

There

Auto

Much is at stake

in

prompt enactment of the tax rate

largely unchanged in the period
ended on Wednesday of last week as an expected last-minute
Easter rise in shopping failed to matrialize.
The early appearance
of the holiday plus generally prevailing unseasonal weather were
deemed partly responsible, states Dun & Bradstreet, Inc., in its

Loadings of revenue^freight for a the week ended March 24,
1951, totaled 743,804 cars, according* to the; Association of Amer¬
ican Railroads, representing an increase of 3,439 cars or 0.5%
week's

enough to

the months immediately fol¬
lowing the Korean aggression.
"The prudent course now is the

steady, except for footwear, which

The

collected

en¬

in

Consumer spending remained

Electric

of

com¬

its disbursements since the

cover

in

active.

to

yielded 2,019,000 tons.

duction

the old capacity and

A

program.

*

<

only in the months of April and May, 1942.

Demand

have

to

ance

end of the war.

large portion of the belt.

favorable

moderate.

April

) period

bination of circumstances has

"

Steel Ihstitute announced this week

beginning

my

the Treasury.

abled the government on net bal¬

year ago.-

reported.

week

during-

in

111,300 the previous week and 87,700 in the corresponding week

that the operating rate of steel companies having 93% of the steelthe

service

a

consumer

American Iron and

The

ended

com-*

defense expenditures

geared; (2) that from

March

don't reflect the uncertainty facing many

although they

level,

cars

below

1951

creased

selling,

production and ship¬
show that metalworking activity is still at a very high

manufacturers.

..

three

below the levels of

careful

A

steel

agencies con¬
of

me

pellipg facts: (1) that the reduc¬

Dun & Bradstreet, Inc., held in a narrow range during most of the

recent increase in DO set aside (from 17% to

25%).

for

assure

government will be spending at

Wholesale Commodity Price Index Lifted

western

now

be

may

payments and not due to

general trend of food prices at the wholesale level.

the week.

own

level of $5.96, and

war

24.5% above the year-ago index of $5.79.

rionferrous

operation is

}

is the result of

pressure

victim of its

cerned

figure is still 21.0% above the pre-Korea

any

a

dip in the Dun & Bradstreet wholesale food

weeks, or since Jan. 30 when it stood at $7.17.
Although down
1.4% from the post-Korea high of $7.31 on Feb. 20, the current

ward in

and

expenditures

1952

"The government

past

been

16

page

less than estimated in January.

tion in

were

a

mild

Registers Further Mild Dip

price index last week brought the March 27 figure to $7.21, from
$7.23 the week before.
This marked the lowest level in eight

of

time it has been known that dealers and dis¬
buying goods faster than they were selling them.

long

a

further

A

from

Snyder Reports
Improved Fed. Finances
year

Food Price Index
Steel Output

Continued

(Special

to

The

BOSTON,

Financial

Mass.

Chronicle)

Warren

A,
Lewis has been added to the staff
of Weeden &

—

Co., 24 Milk Street.

store sales in New York

City for the weekly period of March 24,
1951, advanced 9% from the like period of last year.
In the pre¬
ceding week an increase of 10% was registered above the similar

week

of

increase

1950.

of

the year to
last year.

13%

For

the

four

weeks

ended

March

24, 1951,

With D. J. St.
(Special

The

Germain^

Financial

Chronicle)

SPRINGFIELD,- Mass.

an

was recorded over that of a year ago, and for
date, volume advanced 19% from the like period of

to

J.
D.

Lord
J.

St.

is

now

Main Street.

—

Hector

associated

Germain

&

Co.,

with

1490

iVolume-173

Number 5000

.

The

Indications of Current

Business Activity
AMERICAN IRON AND

following statistical tabulations

latest week

week

or

month ended

on

Previous

Month

Week

Ago

Ago

.Apr.

8

102.4

103.5

101

96.8

-Apr.

8

2,047,000

2,069,000

2,019,000

1,845,300

AMERICAN

oil and condensate output

Crude

gallons ^ach)

.

'

INSTITUTE:

PETROLEUM

Crude

to

—

—.

stills

daily average (bbls. of 42

...

6,037,500
116,418,000

Mar,, 24

___

—

,

_

5,945,150

4,848,100

6,524,000

5,469,000
17,839,000

S.

—U.

OF

2,338,000

New

10,545,000

6,870,000

New

nonresidential

9,720,000

9,473,000

9,471,000

8,171,000

Revenue

(number

of

141,239,000

*141,007,000

13,032,000
43,626,000

13,084,000
44,966,000

135,406,000
12,950,000

Mar.24

37,327,000

37,753,000

136,870,000
12,527,000
48,764,000
38,995,000

Mar. 24

40,086,000
42,546,000

BUILDING

$2,068

$1,618

1,571

1,262

901

717

830

655

47

LABOR—Month of February
new construction
i

54
17

11

383

376

252

128

DEPT. OF

(in millions):

Total

construction—,

Private

:

(nonfarm)—

—

dwelling units!
Additions, and alterations

.J

cars)

Mar. 24

748,804

Mar. 24

745,365
708,312

702,406

734,794
729,311

717,259

Nonhousekeeping
Nonresidential building

672,739

CONSTRUCTION

(nonfarm)

—

construction—:

S.

Federal

246,377,000

59,776,000

~Mar.

29

168,501,000

_______Mar. 29

82,285,000

99,985,000
83,330,000

„

.——I—3.

;

municipal

—.

$414,878,000

_Mar. 29

:

construction
and

__Mar. 29

.

Private construction

Bituminous

—

,

_.

._______Mar. 29

;

„—,—_—___

$159,761,000

86,216,000

16,655,000

$352,081,000
274,560,000

27-

Stores, restaurants, and garages——^
nonresidential, building—.

$258,901,000

77,521,000
52,501,000
25,020,000

103,380,000

76

75

50

127

126

36

37

27

28

22

17

18

18

31

30

26

•

Other

155,521,000

Religious

—■

Educational

71,419,000
31,961,000

Social

(U. S. BUREAU OF MINES):

and

——„————.

recreational—

.

coal

STORE

DEPARTMENT

SALES

10,120,000

Mar. 24

516,000

Mar. 24

142,900

;

INDEX- -FEDERAL

RESERVE

♦9,920,000

10,090,000

12,765,000

'

412,000

933,000

1,138,000

*149,300

156,500

93,600

Public

292.

304

Mar. 24

279

274

utilities

69

75

220

209

construction

Mar. 31

6,767,344

6,847,786

6,822,098

31
——...

AND

INDUSTRIAL)

—

DUN

BRAD-

is

Military
170

136

Mar. 29

170

198

5

Finished steel (per lb.)

METAL PRICES

(E.

A

4.131c

4.131c

4.131c

Mar. 27

Pig iron (per gross ton)—
.Scrap steel Cper gross ton)—

..

3.837o

Mar. 27

$52.69
$43.00

$52.69

$52.69

*$46.38

$43.00

$43.00

$28.58

Mar. 27

...

M. J. QUOTATIONS):

Electrolytic copper— <
^Domestic refinery -at__
;
Export -refinery* at—
^____
Straits tin';(NewrYork) -at——
,

Mar. 28

_

tLead (New

.

-Lead

Einc

York) at.

(St. Louis)

24.200C

24.200c

18.200c

24.425c

-24:425c

•24.425c

V

:..

76.500c

FABRICATED

17.000c

10.500o

ICAN

16.800c

16.800c

10.300c

~i

Industrials-Group.

.Mar. 28

17.500c

1^.5Q0c

17.500c

10.250c

-

99.50

;. 99.53

101.14

113.12

115;43

—-Apr.
—Apr!.
-rApr.
-Apr.
..'Apr.
..Apr;

115.82

116.61

119.20

116.22
121.25

115.04

115.82

118.00

119.82

115:43

2.53

111.25

112.37

114.85

115.82

107.62

108;34

109.79

109.24

110.15

112.56

112.37

113.31.

115.24

118.60

120.22

2.53

2i41

-Apr,

_*

,——

2.27

3.D4

3.00

2.88

2.82

2.69

—

_

Public Utilities Group—
Industrials Group

..

2.86

2.75
2.91
3.18

3.23

3.21

3.16

3.03

COMMODITY INDEX.

2.99

2.89

2.84

2.72

2.64

527.4

356.0

__Apr.

_Apr.

—

—

y

Orders received

3.04
2.88

3

.

2.79

—Mar. 24

188,865

245,852

201,026

186,128

._Mar. 24

(tons)————

247,911

250,490

105

106

251,715
V
105

„Mar. 24

Group '

r—,

Total

———r.—

'Inventories:.

•.

687,921

751,036

663,339

——————

Total

Sales

-i

'

MONEY IN CIRCULATION—TREASURY
—As of Jan. 31 <000*8 omitted)—

Total

IN U.

ON

EXCHANGE

.Mar. 30

THE

N.

Y.

154.4

154.5

153.9

121.7

of

passenger

Number

of

trucks—
coaches——r—.—-—

motor

of

motor

Dollar value

—

>

:

other sales

Customers*
Dollar value

32,547

28,413

1,173,540

958,212

973,779

830,869

;

.

___

$41,738,785

$42,436,272

$35,514,604

$50,552,440

33,794

;

....

31,491

31,825

465

340

240

181

30,219

31,585

984,004

840,359
12,418
.* 827i941
$34,100,807

890,110

31,310
870,826

:

Mar. 17

17,660

—Mar. 17

966,344

Mar. 17

$40,109,761

;

30,559

f

.

33,329

Mar. 17

—Mar. 17

—

;

.'

...

Short sales

Round-lot

Mar. 17

.

—

9,157
880,953
$37,516,646

864,149
$32,497,863

260,730

purchases by dealers—

:

.

-

280,410

Mar. 17

—

280,410

-

•;

257,77Q

262,550

260^730

251,110

262^550

h

labor

PRICES

1926=100:

...

Farm

-products

Grains

'

.

AIL commodities 1

U.

S.

/'.

424,470

355,510

331,300

—

'

7

Fuel

and

Metals

Food

...

;

Building materials
Lumber
*

-

Chemicals

.—i.——




27-

...Mar.27

allied products.

^ •Revisedrftgure. -i INot'^avallable,

u—Mar 27

—Mar. 27Mar

—

—

and

v

•

j.__;

——

grain

—

grain and hay—

Mar. 27*

204.6

201.5

-

Fruit

Oil-bearing

-

187.0

189.3

167.3

133

$239.2

*$241.0
*154.3

132.2

158.7

*157.2

135.0

70.1

*70.0

'56.7

42.9

*42.4

39.5

*19.4

17.9

25.4

20.9

3.5

199.2

Meat

188.6

155.9

Dairy

273.6

273.2

213.9

Poultry

172.3

'172.1

171.2

185.1

185.1

182.2

r

3.4

3.0

*47.0

43.5

18.8

*24.7

12.5

11.6

18.4

219.1

*221.9

195.2

300

286

235

137.1

'139.0

139.0

138.1

131.9

189.3

188.7

168.6

227.7

227.7

227.9

194.0

358.9

358.9

145.5

(Includes 451,000 barrels of foreign crude runs.

*145.6

•t
148.5

17.5

202

218
170
'

442

436

382

347

339

222

192

202

185

211

261

374

crops

366

228

—

249

323

products

——

eggs

360

286

286

272

254

203

——

311

391

and" products—
animals

and

233.

214

219

258

240

249

158

$972,000
1,022,300

$1,063,000

'$741,000

*864,105

*623,443

—

146.3

X

189.3

2.8

2.9

3.5
49.2

X

UNITED STATES EXPORTS AND.IMPORTS—
BUREAU OF CENSUS—-Month of Jan.:

(OOO's omitted):
Exports
Imports

116.8
•Revised.

—
—

—

a

;

-4**

$214.6

155.2

324

——.—

Livestock

266.3

187.9

275A

■

——.

crops

272!9

——

—

——

Truck

159.8

•

—

——

152.9

183.0

188.3

.Mar. 27

.Mar! 27

—

lighting materials^

*661

275

273.6

'

Mar. 27...

and metal; products

521

—

—

187.3

...Mar. 27

:—

183.9

203.8

*

-All commodities other than farm and foods__i,_i..i___.w—— .1—Maf. 27
Textile products
—Mar. 27
f.

475,465
385,361
89,971

*478,589

BY FARMERS—INDEX
DEPT. OF AGRICUL1909-July, 1914=100—As

Cotton

183.9

Mar. 27

—

—

products

farm

All

~

—.—

Meats

111,935

*127,583

social

Unadjusted—

267,600

/'

Livestock
Foods

r

*606,833

S.

Tobacco

..Mar. 27
....—

U.

fcURE—August,
of January 15:

DEPT. OF LABOR—

—

_

618,321
505,865

———:——-

income—.-

RECEIVED

NUMBER
*

Feed
—

for

Proprietors'• and rented income—.—
personal Interest income and dividends—
transfer payments—...
—
Total
nonagricultural income——

Crops
...Maf. 17.

WHOLESALE PRICES NEW SERIES

$26,941,000

*

Total

'

Number of shares-..————

•

*$27,741,000

i

15,874

6,677

Mar. 17

...—

Other sales

$27,045,000

.———

—

contributions

employee

insurance

Other

Mar. 17

.__

—

Number of shares-s-TotaL sales..

16,005

Government
Less

Round-lot sales by dealers—
*

$29,270

*21,775

•

,_

other sales.
-

33,189

Mar. 17

short* sales

*$34,163

$13,396
.^5

26.0

Industries

industries

Service

?

;I_

Number Of shares-^-Total sales——

Customers'

,

40,423

Mar. 17

—

short. sales

Customers'

$35,222
23,037

*18,571

19.7

personal

Distributive
..Mar. 17

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales—
Customers'

*$15,592

UNITED STATES

income—
and salary receipts, total———
Total employer disbursements
Commodity producing industries—

.Mar. 17

-—.

.$1,745,000

(DEPARTMENT OF COMMERCE)—Month
of January (in billions):

COMMISSION:

Number of shares.

—

cars—.—

Wage

STOCK

—

—

$2,954,000

S.

Number

95

Odd-lot sales by dealers (customers' purchases)—
Number of orders

DEPT.

of vehicles—.

number

Number

Total

EXCHANGE—SECURITIES

212,000

FACTORY SALES FROM
(AUTOMOBILE MANU¬
Feb.:

VEHICLE

MOTOR

355,062

___;

SPECIALISTS

402,000

333,000

;•

i

Nondurable

STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODDAND

$1,131,000

370,000

1,142,000

129,628

MANUFACTURERS' INVENTORIES & SALES
(DEPT. OF COMMERCE) NEW SERIES-—
Month of January (millions of dollars):

INDEX—1926-36

——

DEALERS

$1,442,000

$16,083
>19,140

___,_u—~———-

PERSONAL INCOME IN THE

LOT

117,664

$1,340,000
395,000

Ordinary ———i—

210,897

..Mar. 24

at———

PAINT AND DRUG REPORTER PRICE
AVERAGE—100

*286,178
*176,862

/v.,

FACTURERS ASSOC.)—Month of

Percentage of activity.

OIL,

200,788
154,783

.i i

526.2

522.1

3

'

ASSOCIATION:

Production (tons)
Unfilled orders (tons)

496

PURCHASES —INSTITUTE
INSURANCE—Month of January

LIFE

PLANTS

NATIONAL PAPERBOARD

9,181,000

541.8

3.08

■.

MOODY'S

20,417,000

13,273,000

\iW';

closed

Industrial

2.86

3.26

—Apr.

.

—-

23,264,006

20,900,000

562.8

2.66

3.04

3.30

—Apr.

,

2.90
3.10

—Apr.

.Railroad Group

23,201,000

(000s omitted):

2.59

—Apr.

•

7

,143,000
,885,000
,394,000

2:84

2.86

—Apr.

!

10

49

6

INSURANCE

OF

111.62

—Apr.

—

10
54

5

117.20

116^2

—Apr.

Average- corporate,

1

8

108.88

AVERAGES:

UVB, Government; Bonds—
-

46

49

(tonnage)—^estimated——
Shipments (tonnage) estimated.——.

103.08

112.37

—Apri

MOODY'S BOND YIELD DAILY

52

INSTITUTE

Contracts

LIFE

--Apr,

—

55

49

TION)—Month of February:

-Railroad Group.
Public Utilities Group—.—

.

9

27

105

$2,068,000

182.000c

17.000c

————Z~_

'

STRUCTURAL STEEL (AMER¬
OF STEEL CONSTRUC¬

134.000c

r

—Apr,

.3aa«*

30

,

65

Spinning spindles in place On March 3
Spinning spindles active on March 3—
Active spindle hours (000's omitted) March
Active spindle hours per spindle in place Mar.

16.800c

U. S. Government' Bonds—

33

29

COTTON SPINNING (DEPT. OF COMMERCE):

17/OOOc

^jAyerage1^ corpora te;c._^—:

n
79
38

25

———.—-—

134,000c

___—

■

37

•

18.425c

MOODY'S* BOND- PRICES DAILY AVERAGES:

•

water.

.Mar. 28

—

....

34

,110

31

^——

..Mar. 28

_

;

154

214

108

facilities

naval

—,—,—i.Mar. 28

___

at—_

(East St. Louis) at——

24.200c

.Mar. 28

;

26

'

——

and

Sewer

9

356

29

205

———

Miscellaneous public-service enterprises—
^Conservation and development-———.—
All other public

IRON AGE COMPOSITE TRICES:

5
497

37
■——

and

Highwa,ys

161

29

„.

(COMMERCIAL

32

169

435

Hospital and institutional——-———_.
Other nonresidential building

STREET, INC. ;

29

173

.i—_—

Educational

5,911,936

16

22

15

——

—

Industrial

output (in 00a kwh.)_

10

13

74

219

building——
Nonresidential, building———
EDISON ELECTRIC INSTITUTE:

29

—

Residential

"

*

16

105

——

Telephone and telegraph..
Other public utilities—
All Other private—
Public

...

—

—

Railroad

SYS-

TEM—1935-39 AVERAGE=100__

...

construction——

Farm
—Mar. 24

and

lignite (tons)
Pennsylvania anthracite (tons)
Beehive coke (tons)—-

1

77

47

Miscellaneous

COAL OUTPUT

PAILURES

70

122

46

Hospital and Institutional——

Electric

51

122

Commercial

ENGINEERING NEWS-

—

RECORD:

State

55,604

800

S.

Warehouses, office and loft buildings.

CIVIL ENGINEERING
U.

80,915

864

:

New

freight received from connections (number of cars)

Public

216,190

74,375

:

CONSTRUCTION—U.

Industrial

Total

292,641

250,616

of

Additions, alterations, etc..

ASSOCIATION OF AMERICAN RAILROADS:

freight loaded

$564,435

376,142

1,545

Month

—

Residential building

Revenue

$707,673

426,292
280,717

$1,980

—

residential

8,792,000

,

_

17,885

17

2,628,000

.__

at

50,443

12,942

$781,384

LABOR

_Mar. 24

at

67,954

134

DEPT.

February (000's omitted):
building construction

All

8,951,000

,

(bbls.)

Ago

14,445

•

_

Gas, oil, and distillate fuel oil (bbls.)
Residual fuel oil (bbls.) at

Yea*

Month

62,740

(in short tons) Month of February
Stock of aluminum (short tons) end of Jan,

20,815,000
2,632,000

*

Kerosene

6,042,750
*6,401,000
20,341,000

20,028,000
2,619,000

....

.

Previous

ALUMINUM (BUREAU OF MINES):
Production of primary aluminum in the U.S.

BUILDING CONSTRUCTION PERMIT VALUA¬
TION IN URBAN AREAS OF< THE U, S.

daily average (bbls.)
.
Mar, 24
L Gasoline output (bbls.)—
Mar. 24
Kerosene output' (bbls.)
Mar. 24
-Gas, oil, and distillate fuel oil output (bbls.)
;
Mar. 24
Residual fuel oil output (bbls.)
—Mar. 24
f Stocks at refineries, at bulk terminals, in transit and in pipe lines—'
Finished and unfinished gasoline (bbls.) at——,
;
Mar.24
runs

of that date;

as

Month

Equivalent to—
Bteel Ingots and castings (net tons)

!

either for the

Latest

Indicated steel operations (percent of capacity)
•

are

that date, or, in cases of quotations, are

Year

Week

production and other figures for the

cover

Dates shown in first column

month available.

or

Latest

INSTITUTE:

STEEL

41

(1465)

The Commercial and Financial Chronicle

.

.

*"

42

(1466)

The Commercial and Financial Chronicle

.

.

Thursday, April 5, 1951

.

Je~s

Securities Now in
Alhambra
Nov.

filed

($1

par

1

per

Gold Mines Corp., Hollywood, Calif.
80,000 shares of common stock. Price—At
share). Underwriter—None. Proceeds—For

further development of mine and for
American
Feb.

16

filed

one

share of preferred and 1.3 shares

Co., Inc., which com¬
will construct Dallas hotel. Business—A non-profit
corporation under sponsorship of Dallas Chamber of

.

stock.r Price

—

$1

•

American Television & Radio
Co., St. Paul, Minn.
(letter of notification) 200,000 shares" of com¬

tion expenses and

are

to

$10,000,000 sinking fund debentures due
Price —To be supplied by amendment.
Underwriter—Halsey, Stuart & Co. Inc. Proceeds—To
reduce bank loans by $9,000,000, and the balance added
to working capital.

be spjd .to

certain

working capital.
Paul 1, Minn.
American Yarn &

Celanese Corp.

preferred

Processing Co.,

of

stock

None.
•

22

(letter of notification) 452 shares of common
(par $1).
Price—$16 per share.
Underwriter—
Proceeds—For general corporate purposes.

Arden

Co., Los Angeles, Calif.
(letter of notification) 10,000 shares of

March

22

ferred

stock

(par

Proceeds

to

be

offered

to

25

on

basis of

one

derwriter—None.

Porceeds—For

per

(no par),

working

share.

22

filed

'
.

Louisiana Electric

Co., Inc.

- •

Jan. 25 filed

capital.

250,297 shares of common stock (par $10);
21,480 shares of 4.5% preferred stock (par $100), of

and

•

Beaut*' Vues Corp., North Burbank, Calif.
28 (letter of notification)
33,200 shares of com¬
mon stock
(no par). Price—$5 per share. Underwriter

which the preferred stock and
214,800 shares are being1
offered in exchange for shares of common stock of Gulf
Public Service Co., Inc., on basis of
4/10ths of a

—None.

Proceeds—For

of

3333

Fernando

corporate

Road,

share

Office—;
Calif.

purposes.

North Burbank,

Blacfi, Sivalls & Bryson, Inc., Kansas City, Mo.

and

one

share for each three shares held.

$12.50

per share.
Underwriter—F. S. Yantis & Co., Inc.,
Chicago, 111. Proceeds—To acquire stock of Zenite Metal
Corp.
1
;
*
...

Brad

Foote Gear

Works, Inc., Cicero, III.
(letter of notification) 150,000 shares of com¬
mon stock (par 20
cents). Price—$2 per share. Under¬
writer
Gerhart, Kinnard & Otis, Inc., New York.
March 19

—

Proceeds—For working capital.
Avenue, Cicero, 111.

Office—1309 So. Cicero

Bristol

Silver Mines
Co.,'Salt Lake City, Utah
(letter of notification) 1,633,124 shares of com¬
mon stock
being offered for subscription by stockholders
of record March 15,
1951, at rate of one share for each
two shares held (with an
oversubscription privilege);
rights to expire on or about April 28.
Price—At par
(10 cents per share); Underwriter—None. Proceeds—
For

•

development of
City 1, Utah.

ore.

Office—218

Felt

Bldg.,

Salt

Street Investing Corp., New York
April 2 filed 250,000 shares of capital stock.
Price—
at
market,
Underwriter—1\road Street Stales Corp.,
New York.
Proceeds—For investment.

Brown Co., Berlin, N. H..
Jan. 25 filed 144,151 shares of $5 cumulative convertible
preference stock (no par) and 144,151 shares of $3 cumu¬
lative second preference stock
(no par), together with
voting trust certificates representing the
same, offered
in exchange for
144,151 shares of $6 cumulative con¬
vertible preferred stock on basis
of one share of each
class of preference stock for each
share of $6 preferred
stock; offer extended from March 26 to April 30.
George-

a
as

share of preferred for each
of record March 13.
This

May 1. The remaining 35,497

on

reserved

are

by the
outstanding.

stock.

-for

company

to

com-*

possible future issuances
holders of common stockir

Statement effective March 12.

Chevron Petroleums, Ltd.,
Toronto, Canada March 14 filed 900,000 shares of common
stock (par $l)r
to

be

offered

"as

soeculation." ( Price

a

share.

Underwriter—Willis

York.

Proceeds—To take up

erties.

■

•

.

/

/

■

-

—

50

cents pert

E. Burnside &

Co., Inc., New'
option and develop prop-'"

v;

:.

-■

f

•

::

Columbus & Southern Ohio Electric Co.

(4/18)
200,000 shares of common stock (par $5).supplied by amendment.
Underwriter—
Dillon, Read & Co. Inc., New York/ Proceeds—To
defray•
part of the $55,000,000 cost of further construction sched¬
March 30 filed

Price—To

be

uled for the three years

through 1953*

share for each 10 shares held; rights to

one

Price—At par ($20 per share).
Proceeds-—For

construction

Dixie Fire &

Casualty Co., Greer, S. C.

(letter of notification) 6,000 shares of common,
(par $10). Price—$20 per share. Underwriter—

-

Proceeds—For working capital.

None.
•

Dodge & Cox Fund, San Francisco, Calif.
March 28 filed 25,000 beneficial shares. Price—At mar¬
ket. Underwriter—Dodge & Gox. Proceeds—For invest¬
'

ment.

Duke

Power

$40,000,000 of first

and

(5/3

bonds, series G, due May 1, 1981. ~ Underwriter—Tobe determined by
competitive bidding. Probable bidders:/
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; The
First Boston Corp. Proceeds—To
repay Bank, loans and/
for additions and improvements to
property.
Consolidated

March
mon

28

(letter

stock
of

to
a

be

Engineering Corp.
of

notification!

issued

stock

to

Harold

option.
—

Office—<620

805

F.

shares

Wiley/

North

Proceeds
Lake

—

com-'

Duke Power Co.

$5

the
per

•./'.■

.

cents),

offered in

exchange for 200,000 shares of common stock
Bates Manufacturing Co.
(Consolidated now owns.
51,400 shares, or approximately 13% of the 391,500 out¬
standing Bates shares); on basis of 11: shares of Consoli-;.
shares

Continental

San Francisco

Private Wires




to

all

offices

Cleveland

??.<

Underwriter—1To be determined

by competitive bidding.

Probable bidders: Halsey, Stuart

& Co.

Inc.; Morgan Stanley & Co.; Stone & Webster Se¬
Corp.# "The'
l^i^eeds --r- Fofc;
construction: program.-BidSKrr-;.Expected, at^l 1:30 a.m. •
(EST) on April 16.
curities

Duncan Coffee

Co., Houston, Tex.

March 20 filed 150,000 shares of class A convertible com¬
mon stock (par $2.50). Price—Expected at $9 per share.
Underwriters—Underwood, Nehaus & Co., Houston, Tex.,
and Dewar, Robertson & Pancoast, San Antonio, Tex.

Proceeds—To

M.-and

H.

C.

respectively,

Vice-President,

W.

Duncan, President and
who are the two selling
*

Eastern

$25)

to

be

issued

or

in

exchange for preferred stock, as
value (1) in cash, or (2) either in
class A stock; 33% of par value in 4% deben¬

follows; 20% of
a

par

maximum of

$31,000; and approximately

$43,000.

Purpose—To

effect

a

up

to

a

maximum of

reorganization,

de¬

and

centralization of company. Office—c/o Dorothy Kenyon,
50 Broadway, New York 4, N. Y.
/.v»
First Securities

Corp., Philadelphia, Pa.
(letter of notification) 200,000 shares of capital
(par 1 cent). Price—50 cents per share. Under¬
writer—Corporation itself. Proceeds—For working capi¬
tal and expansion program. Office—1520 Locust Street,
Philadelphia, Pa.
•
Feb. 26

of

Bates

stock.

Exchange offer to

Statement effective March 2.
Car-Nar-Var

Fischer

&

Porter

April 2 (letter of notification) $100,000 of 5% debentures
due April 30, 1976 and an unspecified number of common
shares

the

subscription price of which shall aggregate
of $100,000, both issues to be offered for
subscription by employees. Proceeds—For working capi¬
in

excess

tal/Office—Hatboro, Pa."
•

Florence

■

Stove

f

v

Co., Gardner, Mass.
•
March 19 (letter of notification) 11,111 shares of common
stock (no par) to be offered to 200 key employees. Price
Approximately $27 per share. Underwriter — None.
.

—

-

Proceeds—For
School

general

corporate

purposes.

Corp., Brazil, Ind.
March 5 (letter of notification) 150,000 shares of com-'
mon (voting) stock (par
$1). Price—$2 per share. Under¬

March 30 filed 23,206 shares of common stock
to be offered to

& Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and general
corporate purposes.

,

Co.

writers—Sills, - Fairman

Philadelphia

Chicago

>/.•/>

.

March 22 filed $35,000,000 first and refunding mortgage

not

v

of

for 10

.

bonds due April 1, 1981.

•

working
Pasadena,-

Consolidated Textile Co.. Inc., New York
Dec. 27 filed 220,000 shares of
capital stock (par 10

dated

•.

(4/16)..

...

of

For

Avenue,
,

of

upon

Price—100/115th

None.

•

expire April 30.

■

stock

Underwriter

capital.

-'w-i

-

47% of par value in class A stock

refunding mort¬

gage

•

*

None. Proceeds—For iconstruction program.

tures bonds to

filed

(4/6)

(no par)
to be offered to common stockholders for subscription
on basis of one share for each 10 shares held as of April
6, 1951,- with an oversubscription privilege; rights to
expire on May 1. Price—-$75 per share* Underwriter—

bonds

Consolidated Edison Co. of New
York, Inc.
30

Co.

■

■

March 22 filed 126,255 shares of common stock

•

March

"

V; : "/■
Duggan's Distillers Products Corp.
Oct. 27 (letter of notification) 340,000 shares of com- mon stock (par 10c).
Price—75 cents per share. Under**
writer—Olds & Co., Jersey City, N. J. Proceeds—To pay
balance of purchase price for building ($20,000) and for
working capital.

Cooperatives, Inc., New York h
March 29 (letter of notification) $31,000 of 4% debenture
bonds and 1,720 shares of class A (preferred) stock (par

To

—

Calif.

Pittsburgh

Under¬

program.^

Statement effective March 26.
•

& Co., New York.
prepay short-term bank loans and for'
working capital. Offering postponed.

exercise

Boston

being

stock

common

writers— None.

•

Underwriter—Eastman, Dillon

Proceeds

share.

NewYork

of

stockholders of record March 30,1951,

stockholders.

-

,

Consolidated Cigar Corp., New York
";
March 9 filed 50,000 shares of cumulative
preferred stock,
series of 1951 (no par). Price—To be
supplied by amend¬
ment.

Broad

held

Underwriter—None.- Purpose—To ac-'
quire not less than 429,600 shares (80%) of Gulf common;

•

March 2

Lake

,

expire

shares
sale

then

Price—

l/25th of

share

common

mon

March 15 filed 120,000 shares of common stock
(par $1),
be offered for
subscription by common stockholders

and

common

Gulf

offer will

to

at rate of

basis of

on

shares

850,000

common

expire April 26.

stock

Central

Un¬

filed

1

offered to

March 26

drawn.

March

San

March

shares

—

stockholders of record April
share for each four shares
held, with

Price—$10

,

Co. Inc., New York.
Proceeds —To refund $75,908,750'
funded debt, for capital and additions to
plantsrancHacil-N
ities and for general corporate
purposes. Statement with- '•

common

oversubscription privileges.

35

*

Co.

Edison

Detroit

Corp. of America
$1OO,OO0,0CO of sinking fund debentures
due April 1, 1976.
Price—Plus other details, are to be
supplied by amendment. Underwriter
Dillon, Read &

(4/25)
stock

each

Proceeds—For investments.

—None.

Celanese

—

common

(4/11)

A

(par $100), to be offered to
stockholders of record April 11, 1951, at rate

shares for

March

Seventh

Artloom Carpet Co., Inc.
March 27 filed 78,556 shares of

series

facilities.

pre¬

For working capital.
Offices — 727
Street,' Los Angeles 17, Calif., and 415
North Ninth Avenue,
Phoenix, Ariz.

West

six

stock,

Co., New York. Proceeds—To retire $44,100,000 of first
preferred stock, and for capital additions to plants and/

$25) and 10,000 shares of common
stock (par $5) to be offered in units of one share of
each class of stock. Price—$30
per unit.
Underwriter—
None.

of America

,

Farms

.

(par $5),

shares are to be offered to stockholder!
127,364 shares to oublic. Price —To stockholders e*
$5 and to public at about $6.75 per share. Underwriter

held; rights to expire '•
on
April 25. The opportunity to exchange 7% second
preferred stock for new preferred stock is to be given
to existing holders.
Price — Plus dividend rate, to be
supplied by amendment. Underwriter — Dillon, Read &

Mount Holly, N. C.
March

(4/10)v

and

common

•

Corp., Chicago, III.

filed 132,182 shares of common stock

23

of which 4,818

Proceeds—For general corporate pur¬

March 22 filed 1,000,000 shares of cumulative convertible

Office—300 E. Fourth Street, St.

1966.

1,

Culver

Oct.

Wl/Krbbks & Co.,

mon

For

< ;

(4/17)

March 23 filed

April

poses.

stock (par 50 cents).
Price—$1.50 per share. Un¬
derwriter—George F. Breen of New York. Proceeds—

one

companies,

,,

employees. Price—To be supplied by. ameridm^t.;Under¬
Inc., New York.

working capital.

24

Cudahy Packing Co.

writers—Lee Higginson Corp. and P.

March 30

derwriter—None.

and two cent par com¬
Price—$2 per unit. Un¬
Proceeds—For drilling and explora¬

in

setock

mon

Carr-Consolidated Biscuit Co.

remaining 50,000 shares

Voting Trust

1,500,000 units of voting trust certificates

representing one share of
com¬

March 30 filed 434,604 shares of common stock
(par $1),
of which 384,604 shares are to be offered for
subscrip¬
tion by common stockholders at rate of one share for
each two shares held (with a right of
oversubscription).
The

construction of hotel.

secure

Cuban-Venezuelan Oil

•

per

,

—None. Proceeds—To be invested in
equity securities of

operating sugsidiaries as part of the System's plan for
financing its large construction program. Statement ef¬

Commerce to

share. Underwriter — None.
Proceeds—To construct and operate a liquid and dry ice
plant. Address—Box 12,.Baker, Ore.
;

1951, on basis of one share for each 15 shares held, to¬
gether with an oversubscription privilege; rights to
expire April 17. Price—$52.25 per share. Underwriters

•

chase debentures of Statler Dallas

March 29 filed

Calby Chemical Corp., Baker, Ore. *
>
March 19 (letter of notification) 300,000 shares of

American Gas & Electric Co.
Feb. 28 filed 339,674 shares of common stock
(par $10),
offered to common stockholders of record March
30,

<

Price

Proceeds—-To pur¬

Underwriter—None.

pany

•

mon

ISSUE

Dec. 13-filed $1,500,000 of 2%
—At face value.

5 filed 300,000 shares of convertible preference
(par $100). Price—To be supplied by amendment.
Underwriter—Kidder, Peabody
&
Co.,
New
York.
Proceeds—For additions and improvements to plant and
equipment. Offering date postponed.

(par $4)
(par 10 cents) to be

ADDITIONS

PREVIOUS

Cosmopolitan Hotel Co. of Dallas, Tex.
debentures due 1965.

effective

Statement

stock

both of New York. Proceeds—To
acquire plant, to pay
indebtedness and for working capital.

"

exchanges.

March

of common stock.
Price—$5 per unit.
Underwriters—
Emanuel, Deetjen & Co. and Barrett Herrick & Co., Inc.,

fective March 19.

soliciting

Burlington Mills Corp.

working capital.

300,000 shares of preferred stock

offered in units of

Co.

INDICATES
SINCE

Feb. 21.

Dairy Products Corp., N. Y.

and 390,000 shares of common stock

Registration

&

son

•

•

Office—205

St., Gardner, Mass.

Foote Mineral

Co.

(4/27)

(par $2.50)

stockholders of record April 27,
1951, for subscription at rate of one share for each ten
shares held.
Price — To be supplied by amendment.
common

Volume 173

Number 5000 .;

.

The Commercial and Financial Chronicle

Underwriter—Estabrook & Co., New York.
For expansion program.

Proceeds—

"

-

"form.

.

,

Gas

.

General Controls

April 9, 1951

.

Common

Mountain States Power Co. 11

Strategic Materials Corp.

a.m.

a m.

(CST)—Bonds

___,

Common

_

April 11, 1951

Co., Glendale, Calif.

Celanese Corp. of America

Plywood, Inc.

.

Common
-Debentures

. _ _

Warner-Hudnut, Inc.

.Common

Duke Power Co. 11:30

Grayson-Robinson Stores, Inc.

convertible debentures, series B,

Wyoming-Gulf Sulphur Co

.Common

Cudahy Packing Co

porate purposes.

Peabody Coal Co.——_

-Common

_r

April 17, 1951

Office—Municipal Airport, Atlanta, Ga.

General Shoe

—Debentures

Corp., Nashville, Tenn.
(letter of notification) 7,500 shares of common
stock (par $1) to be issued to The G. Edwin Smith Shoe

Wisconsin Power & Light Co.__

Co.

Columbus & Southern Ohio Electric Co—Common

Bonds

April 18, 1951

in

exchange" for capital stock of The Nisley Co.
Underwriter
None, but it is expected that Smith,
.Barney & Co., New York, will make a secondary offer¬
ing of aforementioned shares on behalf of the Smith
—

& Rio Grande Western RR. ;

Denver

(CST)

noon

April 19, 1951

Glemttore Distilleries Co.

Illinois Central RR.

noon

-Bee.

zn liiea
15y,i42 snares of class B common stock
(par $1)* Price—To be filed by amendment. Underwriter—Glore, Forgan & Ca, New York. Proceeds—
For working capital and general corporate purposes.
Offering—Deferred indefinitely.
' v
/ :
/

a.m.

International Cellucotton

B^ificBighting
V^ul^ikiBeiYi^e

--

Co. of Oklahoma.—_——Bonds

April 25, 1951

>;■.//

Artloom Corpet Co., Inc.

(approximately $61 per share). Pro¬
working capital. Office—919 No. Michigan
Ave., Chicago, 111.
*.
•

International Life Insurance Co.,

March 30 filed

agents of. the company. Price—At par. Proceeds—To in¬

■

_____________Common

April 27, 1951
.

■>'..•••<

Common

..

....

March

common

on basis of one preferred share
shares held, with oversubscription

y"

Bonds

Israel

Bonds

*

—

(State of)

Telegift, Inc.

cerificates.
Israel
March

Ohio Edison Co. 11

a.m.

•

Consolidated Natural Gas

Co

June

5,

Debentures

1951

Georgia Power Co

Bonds

—

July 17,

Granite City Steel Co.

D. Gleich Co.,

holders of record April 3 on basis of one share for each
shares held; rights to expire on April 17.
Price

$22.12^

September 11, 1951

-

.

Preferred

Alabama Power Co.—

.Bonds

share. Underwriters—The First Boston Corp.
and Merrill Lynch, Pierce, Fenner &
Beane, both of New

York.

per

Proceeds—For expansion program.

Grayson-Robinson Stores, Inc. (4/16-21) '
March 29 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Underwriter—
Emanuel, Deetjen & Co., New York. Proceeds—To re¬
duce bank loan.
•'

Greenwich

March 23

.

Gas Co.

(letter of notification) 60,000 shares of common
Price—$5 per share. Underwriter—F. L.

stock (no par).
Putnam & Co.,

Boston, Mass. Proceeds—To retire bank
loans and for capital additions. Offering—Was
expected
to be made on April 4.
.

1
Gulf States Utilities Co.
(4/24)
March 21 liled 200,000 shares of common stock
(no par).
Underwriters—To be determined by competitive bid¬

ding.

.Probable bidders:

Merrill Lynch, Pierce, Fenner
& Beane and Lehman Brothers
(jointly); Stone & Webs¬
ter Securities Corp.
Proceeds—For new construction
and general corporate purposes. Bids—Expected to be
received at 11 a.m. (EST) on April 24.

Gyrodyne Co. of America, Inc.

,

March 14 (letter of notification) 34,320 shares of class A

,

common stock
(par $1). Price—$5. per share. "tJnderwriters—Company itself in New York/and Jackson &
Co., Boston, Mass. Proceeds—For partial financing of
anticipated military contracts and for acquisition of new

manufacturing
Fork 5, N. Y.

facilities.




Office—80
...

Wall

:

expansion program. Bids—Only one bid
by company on March 27, from Halsey,
Stuart & Co. Inc., which was returned unopened. Offer¬

Proceeds—For

received

ing—Postponed
March

in d e f i n i t el y.

Statement effective

14.

Jersey Central Power & Light Co.
shares of cumulative preferred stock

Feb. 21 filed 40,000

together

(par $100). Proceeds—From sale of preferred,
with proceeds

•

Kerr-McGee Oil Industries, Inc.

^

notification) 10,000 shares of common'
stock (par $1) to be sold to Lehman Brothers, New York,
for investment. Price—$19 per share. Proceeds—To T. M.
and Geraldine H. Kerr, two selling stockholders..
Steel Co., Dallas, Tex.
shares of common stock (par $1)
to be offered first to common stockholders of record
April 4 on basis of 3.2 shares for each 10 shares held;
rights to expire on April 14. Price—To be supplied by
amendment. Underwriters—Dallas Rupe & Son, Dallas,
Texas; Estabrook & Co., Boston, Mass.; and Straus &
Blosser, Chicago, 111. Proceeds—To reimburse company
for redemption oU4V2% first mortgage bonds.
March 8 filed 640,000

^

•

•

-

New York, Proceeds—For production: of
and television purposes

motion pictures for theatrical
and for working chpital™* r

Lone Star

1951

Mississippi Power Co

filed

Street,

New

Helicopters for Industry, Inc., New York

March 30

(letter of notification) 20,000 shares of pre¬
$10) and 40,000 shares of common stock
(par 10 cents) of which 2,750 preferred shares and 25,000 shares are to be issued for one Hiller Helicopter and
the assigning of a contract of Helicopter Utilities, Inc.,
with Army Map, Service. Price—At par. Underwriter—
None, Proceeds—To buy equipment. Office—122 East
42nd St., New York 17, N. Y.
Hilton

Hotels

Corp., Chicago,

such stock

Corp.

on a

in

exchange for

share-for-share basis.

their

holdings of

Dealer-Manager—

Carl M. Loeb, Rhoades & Co., New York.
•

Idaho Maryland

March 27
mon

Mines Corp.

(letter of notification) 6,500 shares of com¬
Price—At market (estimated at $2

stock (par $1).

share). Underwriter—E. F. Hutton & Co., San Fran¬
cisco, Calif. Proceeds^—To Siegfried Bechhold, the sell¬
ing stockholder.
*

per

9

Income Foundation

March 29
10

Fund, Inc., Baltimore, Md.

filed 2,000,000 shares of

cents). Price—At market.

common

•

Lynchburg Madison Heights Picture Franie Co,

100,000 pre-organization

March 26 (letter of notification)

Price

— At par
($1 per
Underwriter—None. Proceeds—To promote the
company and for general office equipment.
Office —
c/o Frank D. Crichton, 1912 11th St., N. W., Washing¬
ton, D. C.

certificates for common stock.

share).

III.

March 30 filed 153,252 shares of common stock (par $5)
to be offered to holders of common stock of Hotel Wal¬
dorf-Astoria

Co., Lorain, Ohio
March 13 (letter of notification) 6,705 shares of common
stock (no par), to be offered to common stockholders
at the rate of one share for each 10 shares held. Price—
$20 per share. Underwriter—None. Proceeds—For work¬
ing capital. Office-^-203 West Ninth St., Lorain, Ohio.
Lorain Telephone

ferred stock (par

•

•

Feb. 16 (letter of notification) 193,000 shares of common
stock (par $1)* Prices-$1.50*per share. Underwriter—

March 22 (letter of

284,114 shares of common stock (par
$12.50) being offered for subscription by common stock¬

.

(5/1)

27, which was returned unopened. Offering—Postponed
indefinitely. Statement effective March 14.

1951

Bldg., Boise, Ida.
14

(State of)
filed

$500,000,000 of "Independence Issue"
bonds, in two types, viz: 15-year v3%% dollar coupon
bonds due May 1, 1966; and 12-year dollar sayings bonds
to be dated the first day of the month in which issued
and to have a maturity value of 150% of par.. Price—At
100% of principal amount. Underwriters-American Fi¬
nancial ^Development Corp. for Israel. Proceeds—For
economic development of the State of, Israel. Office—
Authorized agent is located at 11 East 70th St., New
York, N. Y. Statement effective March 28.
19

„

"

Pfd. & Com.

(EDST)

May 14,

'

March

Proceeds—For investment.

Corp., the parent, will be used for new construction'.
Bids—Only one bid, from Union Securities Corp. and
Salomon Bros. & Hutzler (jointly), was received March

May 2, 1951

stocks.

Sonna

,

payment pension

Common

—

Good Hope Placers, Inc., Boise, Ida.
March 15 (letter of notification)
1,500,000 shares of com¬
mon stock.
Price—At par (10 cents per share)'. Under¬
writer—None. Proceeds—For equipment and expansion
of operations and retirement of bonds. Office—337-338

$10,000,000 of single

to be received from the sale, of 350,000
additional common shares to General Public Utilities

___,

•

filed

plan certificates, series A, and $400,000 of single pay¬
pension plan certificates, series B (latter to be
offered to employees of Investors Diversified Services,
Inc.) Price—At 100%. Underwriter—Investors Diver¬
sified Services, Inc., Minneapolis, Minn., for series A

.

Consolidated Edison Co. of New York, Inc

privileges. Tri-Continental Corp., owner of 53.4% of
common stock, has agreed to subscribe to
its-pro rata
share and to purchase any shares not subscribed for
by
other stockholders.
Price—To be supplied by amend¬
ment.
Underwriter
None.
Proceeds
Together with
rother funds, to retire presently outstanding preferred

29

ment

May 1, 1951

holders for subscription

capital and surplus.

Investors Syndicate of America, Inc.

Jersey Central Power & Light Co.
Feb. 21 filed $1,500,000 first mortgage bonds due in 1981.

Foote Mineral Co.—
;;'V

Austin, Tex.

$1,200,000 special stock debentures to be

sold in units of $500 each by regular licensed insurance

<

for each 24

.

Price—At market

was

Globe & Rutgers Fire Insurance Co.

March 30 filed 10,000 shares of convertible second preferred stock (par $15) to be offered to common stock-'

-

Products Co.

Jerry Fairbanks, Inc., Hollywood, Calif.

(EST)—.Common

/Mpnongahela Power Co.____—1——--Bonds

Rutgers Fire Insurance Co.
**■ March 30 filed 30,000 shares of prior preferred stock
(par $15). Price—To be supplied by amendment. Under^ writers—Union
Securities Corp.; Geyer & Co., and Shel-by Cullom Davis & Co. Proceeds—Together with other
-funds, to retire presently outstanding preferred stocks.'

■

•

March 23 (letter of notification) 5,000 shares of common
stock (par $2) to be offered to 85 employees of company.

April 24, 1951

Globe &

•

(CST)____Eq. Trust Ctfs.

Gulf States Utilities Co. 11

>

•

.

—______-Bonds

——_____

/Shoe firm. Offering—Expected early in April.

*

($25

on basis of one share for each two shares held on
April
5, 1951; rights to expire on April 26, 1951. Of the total,
64,164 shares will be purchased by two principal stock¬
holders, to wit: Southern Bell Telephone Co. and Chesa¬
peake & Potomac Telephone Col of Virginia.
PriceTo be supplied by amendment. Underwriter—Courts &
Co., Atlanta, Ga. Proceeds—To reduce indebtedness.

Debentures & Pfd.

March 5

r

par

Inter-Mountain Telephone Co.

•

(EST)———Bonds

a.m.

ceeds—To retire series A debentures and for general cor¬

v-

Price—At

Securities-Corp., St.

March 16 filed 142,500 shares of common stock .(par $10)
to be offered for subscription by common stockholders

crease

April 16, 1951

due Nov. 1, 1965,
exchange for a like
amount of series A debentures, and $50,000 will be of¬
fered publicly. Price—At par. Underwriter—None. Pro¬

i'■

Underwriter—Florida

ceeds—For

of which $200,000 will be offered in

•

(CST)-Com.

Tennessee Gas Transmission Co———Preferred

General-Discount Corp., Atlanta, Ga.
March 22 (letter of notification) $250,000 of subordinated

5%

Corp.

Mountain States Power Co. 10:30

•

-

_Pfd. & Common

April 10, 1951
Culver

shares of common stock (par $5).
Price—To be supplied by amendment. Underwriters—
Smith, Barney & Co., New York, and Wagenseller &
Burst, Inc., Los Angeles, Calif. Proceeds—For additional
working capital.

t

--—Common

—

_ _

Wisconsin Power & Light Co

March 29 filed 50,000

*

-Common

Pacific Refiners, Ltd.—_

preferred stock to be offered for subscription by
common" stockholders. Price — At par ($50 per share).
Underwriter—None. Proceeds—From sale of stock, to¬
gether wtih proceeds from private sale of $750,000 mort^
gage bonds to Northwestern Mutual Life Insurance Co.,
to expand natural gas distribution system. Office—107-^
13th St., Columbus, Ga.
•

share).

Fla.—Proceeds—For general corporate purposes.

April 6, 1951
Duke Power Co__

tive

.

per

Petersburg, Fla., and H. W. Freeman & Co., Ft. Myers,

;

t

mulative preferred stock, series B.

NEWISSUE 6ALEIDU

*

.

43

March 12 (letter of notification) 3,000 shares of 5% cu¬

Light Co. of Columbus (Ga.)
(letter of notification) $250,000 of 6% cumula-

March 9

•-

Inter-County Telephone & Telegraph Co.

*

.

Fosgate Citrus Concentrate Cooperative, Forest
City, Fla.
March 2 filed 476 shares of class A membership stock
(par $100); 801 shares of class B preferred stock (par
$100); 8,000 shares of class C stock (par $100); 2,000
shares of class C stock (par $50); and 4,000 shares oi
class C stock (par $25). Price—At pan Underwriter—
None. Proceeds—To construct and equip plant; Business
—To process citrus fruit juices to a frozen concentrate

*

(1467)

stock

(par

Underwriter—Axe Secur¬

ities Corp., New York. Proceeds—For investment.

Lynn Gas & Electric Co.
>
27 filed $4,100,000 20-year notes, series A, due

March

April 1, 1971. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey * Stuart &
Co. Inc.; The First Boston Corp.; Kidder, Peabody & Co.
Proceeds — To repay $3,800,000 2H% promissory notes
due June 1, 1951,, and the balance for new construction.
Offering—Expected late this month.
M. J. and M. and

M. Consolidated, San

Francisco, Calif.
<
March 19'(letter of notification) 399,923 shares
tal stock (par $1) to be offered to stockholders

scription.

Price—75

cents

per

share.

>

of capi¬
for sub¬

Underwriter-

Continued

on

page

44

44

(1468)

The Commercial and Financial Chronicle

Continued from page
None.

43

writer—The First Boston

*

To

Office—1715 Mills

Proceeds—For working capital.

Tower, San Francisco, Calif.'

\

increase

capital

March 26.
•

'

Corp., New York. Proceeds—
surplus.
Statement effective

and

' h

" '

'

■

"

.''

■

■

.

•;.

Now Haven Pulp & Board Co.

•

March 29

March 28

shares of

Marysville Newspapers, Inc., Marysville, Ohio .
(letter of notification) $135,000 of 12-year 5%
secured debentures (in denominations of $1,000 and $500
each).
^Underwriter — The Ohio Company, Columbus,
.

Ohio.

Proceeds—For

Main Street,

Office—131 N.

working capital.

Marysville, Ohio.

Metal Products Mfg. Co. Inc.
(letter of notification) 25,000 shares of class A
voting common stock (par $1). Price—$5 per share.
Underwriter—James T. DeWitt & Co., Washington, D. C.
.

Feb, 12

Proceeds—For organizational expenses and working cap¬
ital. Office—Wolfe and Jackson Sts., Fredericksburg, Va.

(letter of notification) a maximum of 12,578
stock (par $12.50) to be offered in
exchange for 37,332 outstanding shares of common stock
of Bartgis Brothers Co. on basis of one share of New
Haven Pulp stock for three shares of Bartgis stock. In
lieu of fractional shares of New Haven stock, cash will
be paid at rate of $21 per New Haven share, and same
rate will be effective if Bartgis stockholder wishes to
complete purchase of full New Haven share. Under¬
writer—None. Purpose—To obtain 100% stock control
of Bartgis Brothers Co. and for working capital. Office
—259 East
4

•

Mid-Eastern Cooperatives,

Inc., N. Y.

debenture
stock (par
$25) to be issued in exchange for bonds and notes of
Eastern Cooperatives, Inc., of. equal face value. Purpose
—To effect a reorganization and decentralization of lat¬
ter company. Office—c/o Dorothy Kenyon, 50 Broadway,
New York
•

4, N. Y.

.

Minneapolis Gas Co.

March 30 filed 119,452 shares of common stock (par $1)
to be offered for subscription by stockholders in ratio of
one new share for each ten shares held.
Price — To be

supplied by amendment. Underwriter — Kalman & Co.,
Inc., St. Paul, Minn. Proceeds—For cost of additions to
property.

Monongahela Power Co.

(4/24)

March 23 filed $10,000,000 of first mortgage bonds due

April 1, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey,, Stuart &
Co. Inc.; Equitable Securities Corp.; W. C. Langley &
Co. and The First Boston Corp. (jointly); Union Se¬
curities Corp. and Salomon Bros. & Hutzler (jointly);
Xehman
Brothers; Kidder, Peabody & Co.; Merrill
Lynch, Pierce, Fenner & Beane; Glore, Forgan & Co.;
Harriman Ripley & Co., Inc.
Proceeds—From sale of
bonds together with proceeds ($4,000,100) from proposed
sale of 615,400 common shares to West Penn Electric Co.,

parent, will be used for property additions and improve¬
ments by Monongahela and its subsidiaries.
|
•

Montana-Dakota

Utilities Co.

Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner &
Beane, New York. Proceeds—To reduce bank loans and

^

;

^

^

(letter of notification) 100,000 shares of common
(par 10 cents). Price—60 cents per share. Under¬
writer—Lasser Bros., New York. Proceeds—To Gordon
ft. Kay, the selling stockholder.
;
stock

States

Power Co.
(4/10)
$5,500,000 of first mortgage bonds due
April 1, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; Kidder, Peabody & Co.; Merrill
7

filed

Lyncji, Pierce, Fenner. & Beane.
bank" loans

and

for

new

Proceeds—To repay
Bids—To

construction.

be

opened at 11 a.m. (CST) on April 10 at company's office
in Chicago, 111.
Statement effective March 29.
4
Mountain

States Power Co.

stock

latter issue will be offered for subscription by common
stockholders May 2, 1951, on the basis of one share for

held, with an oversubscription privilege;
rights to expire on May 18. Price—To be named by the
company. Underwriters—To be determined by competi¬
tive bidding. Probable bidders for preferred stock: Mor¬
gan Stanley & Co.; Lehman Brothers and Bear, Stearns
& Co. (jointly); W. C. Langley & Co.; Glore, Forgan &
Co., and White, Weld & Co. (jointly); The First Boston
Corp.
Probable bidders for common stock: Lehman
Brothers and Bear, Stearns & Co. (jointly); First Boston

Corp.; Lazard Freres & Co.; Union Securities Corp., and
& Co. (jointly); Glore, Forgan & Co., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner & Beane and Kidder, Peabody & Co. (jointly); Mor¬
gan Stanley & Co. Proceeds—For construction program.
Bids—To be received at 11 a.m. (EDST) on or about May 2.
Wertheim

Oklahoma Gas &

1951 at rate of

one share for each 10 shares held, with
oversubscription privilege; rights are to expire on
April 24.
Standard Gas & Electric Co. is entitled to
an

purchase
the

121,009 shares and plans to purchase any of
remaining 94,371 shares not subscribed for by other

stockholders.

Price—To

Underwriter—None.

be

supplied

Proceeds—For

by

amendment.

construction

•

(no par).
supplied by amendment. Underwriter—
Blyth,& Co., Inc. Proceeds—For additions and,.improve¬

Price—To

'

"

-

J

Mountain States Telephone & Telegraph Co.
March 9 filed 215,709 shares of capital stock
being offered
to stockholders of record March 30 in ratio of one share
for each five shares

held; rights to expire on April 30.
Price
At par ($100 per share). Underwriter —None.
Proceeds—To repay advances to American Telephone &
Telegraph Co., the parent, which owns 900,801 shares,
or 83.52% of
outstanding stock, and for general corporate

property.

Statement effective March 28.

Pacific Refiners, Ltd., Honolulu, Hawaii (4/6)
March 30 filed 750,000 shares of common stock to be

offered for subscription by common stockholders of rec¬
ord

April 6, 1951, at rate of one share for each share held.
Price—At par ($1 per share). Underwriter—None. Un¬
subscribed shares to be sold at public auction in Hono¬
lulu.
Proceeds—To retire short term promissory notes
and for construction program.

investment.
„

National Gypsum Co., Buffalo, N.

March 14 filed 68,652 shares of

ierial

(letter of notification) $50,000 of first mortgage
6%

bonds due

derwriter—R.

J.

1961-1971.

Edwards, Inc.,

Price—At

100%.

Oklahoma City,

Un¬

Okla.

Proceeds—To retire certain capital stock and for con¬
Office—212 East Broadway, Cushing, Okla..

Palestine Economic Corp., New York

share.

per

For further

Underwriter—None.

development of Israel industry.

effective March 22.

National for

one share of Mortar.
Underwriters—None.
New Hampshire Electric Co.
Jan. 25 filed 15,000 shares of

$4.50 cumulative preferred
stock (par $100) and
140,000 shares of common stock
(no par). Of the latter, 129,367 shares were to be offered
for subscription by common
stockholders of New Eng¬
land Gas & Electric Association
(parent) at rate of one
New Hampshire share for each 12
New England common
shares held.
Proceeds—To retire $2,425,000 of 2%%
?*e remainder to retire 4% % preferred stock
of New England. Statement
effective March 6. Bids—No
.

bids were received for either
issue
ment withdrawn March. 27.

New

on

March 20.

State¬
v

Hampshire Fire insurance Co.

March 5 filed 75,000 shares of
capital stock (par $10) be¬
ing offered to stockholders of record March
26, 1951, at
rate of one share for each
four shares

expire <?n Apttl

10,1951.;




held; rights will
Erice-$37 pep store. Under¬

•

Rowe

■

(T.)

Price Growth Stock

March 27 filed

Fund, Inc.
stock (par $1).

75,000 shares of capital
Price—At market.
Underwriter—None.
investment.

Proceeds—For

Office—Baltimore, Md.

Battler's, Inc., Buffalo, N. Y.
shares of common stock (par $1},
Price—To; be supplied by amendment. Underwriter—
Hornblower & Weeks, New York. Proceeds—To Charles
Hahn, Jr., President, who is the selling stockholder. Ex¬
pected week of April 9. Offering—Indefinitely post¬
poned.

Seal-Peel, Inc., Van Dyke, Mich.
(letter of notification) 225,000 shares of com¬
stock (par $1).
Price—$1.25 per share. Under¬
writer—None.
Proceeds—For working capitaland, to
retire indebtedness. Office—11400 East Nine Mile Road,
March 19
mon

Van Dyke,

Mich., or 103
Placed privately with a
•

Park Avenue, New York, N. Y.
few individuals.

Shawmut Association

(letter of notification) 5,800 shares of common
par). Price—At current market (about $17 per
share). Underwriter—Paine, Webber, Jackson & Curtis,
Boston, Mass. Proceeds—To National Shawmut Bank bf
'
;
Boston, the selling stockholder.
March 26

stock (no

York

7

;

12 (letter of notification) 16,599 shares of com-1
stock (no par) to be offered to common stockholders of record March 28,
1951, at rate of one share for
each ten shares held; rights to expire April 18, 1951.
mon

Price—$15 per share. Underwriter—None. Proceeds^—
working capital. Office—611 West 129th Street, N&W

For

York 27, N. Y.
•

^
Final

Co., Ltd., Los Angeles, Calif.4
notification) 12,561 shares of commcin
stock (no par).
Price—$7.25 per share. UnderwritersPacific Coast Securities Co., San Francisco, Calif. Pro¬
ceeds— To selling stockholders. Office — 4510 Colorado .
Blvd., Los Angeles 53, Cal|f. '
■>*'
Smart &

March 22 (letter of

South Carolina Insurance Co., Columbia, S. C.;t

(letter of notification) 5,000 shares of common <
(par $10) being; offered to stockholders of< record \
15 on basis of one share for each 10 shares held,

Feb. 28
March

(with an oversubscription privilege); rights expire on
April 15.
Price—$20 per share.
Underwriter—None.
Proceeds—To provide additional capital and surplus.
Address—P. O. Box 1199, Columbia, S. C.
1
South State Uranium Mines
Nov. 30 filed 560,000 shares

Ltd.

(Canada)

of capital stock.

(par $25),
Proceeds—

Statement

tion and development expenses, and
•

Price—Ai

Bankers

Life

working capitaL

Insurance Co.,

j
;

Dallas, Tex.
(letter of notification) 2,500 shares of capital
stock. Price—$60 per share. Underwriter—None.
Pro¬
ceeds—To set up net and contingency reserves on poli¬
cies taken from the Southern Bankers Mutual Life In-,
surance Co.
Address—c/o Willis A. Naudain, Reserve

March 22

Loan

*

-

Southern

Bldg., Dallas, Tex.

Standard-Thomson Corp.

Palmer Stendel

Oil Corp., Santa Barbara, f Cal.
(letter of notification) 1,212,200 shares of non¬
assessable stock (par $1) being offered to stockholders
of record March 10 on a'basis of five shares for each

approximately 13,756
$1). Price--At the market
(approximately $7 per share). Underwriters—Lee Higginson Corp., Carreau & Co. and Reich & Co,, New York.
Proceeds—To four selling stockholders. No general pub-,"
lie offering planned.
V
March

12

(letter of notification)

March 5

shares of common stock (par

eight held; rights to expire on April 6.
Price—20 cents
per share.
Underwriter—Burnham & Co., New York.
Proceeds—For working capital, etc.
Office—First National Bank Bldg., Santa Barbara, Calif.

Feb. 5

Pah American

Milling Co., Las Vegas, Nev.
Price—At

Jan. 24 filed 200,000 shares of common stock.

($1 per share). Underwriter—None, Proceeds—To
purchase machinery and equipment, to construct a mill
In Mexico and for general corporate purposes.

par

Peabody Coal Co. (4/17)
March 26 filed $6,000,000 sinking fund debentures due
April 1, 1966. Price — To be supplied by amendment.
Underwriter—Halsey, Stuart & Co. Inc., Chicago, III.

stock

(par $1)
Jo be offered in exchange for 22,884 shares of National
Mortar & Supply Co. stock in ratio of three shares of

new

•April 24.

($1 per share). Underwriter-Optionee—Robert Irwin
Martin of Toronto. Proceeds—For commissions, explora¬

Pact Gas Co., Cushing, Okla.

Jan. 8

Proceeds—For

Y.

common

ceeds—For

,

par

•

Nation-Wide Securities Co., Inc., N. Y.
March 30 filed 300,000 shares of
capital stock (par $i).
Price—At market. Underwriter—None.
Proceeds—For

#

Hutzler; Harriman-Ripley & Co., Inc. Pro¬
construction; Bids—To be opened on
v"•; '
,

Bros. &

mon

stock

•

—

purposes.

(4/24)
^
$10,000,000 of first mortgage bonds; series
C, due April 1, 1981. Underwriters—To be determined
by competitive bidding, probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan & Co.; White, Weld & Co. and
Shields & Co. (jointly); The First Boston Corp.; Kuhri,
Loeb & Co. and Union Securities Corp. (jointly); Salo¬
Public Service Co. of Oklahoma

March 12 filed

be

Price—$28

Co., Inc.; Merrill Lynch,
Pierce, Finner & Beane; Lehman Brothers; A. C. Allyn
& Co. and Bear, Stearns & Co. (jointly).
Proceeds—To
repay bank loans and for expansion program.
Bids-—
To be received at company's office in
Chicago, 111., up
to 10:30 a.m. (CST) on April 10.
Statement effective
March 29.—

pro¬

Pacific Lighting Corp. (4/24)
April 3 filed 369,643 shares of common stock

Probable

&

1951

March

Feb. 15 filed 200,000 shares of common stock

Blyth

Thursday, April 5,

Sinclair & Valentine Co., New

Electric Co.

March 5 filed 215,380 shares of common stock (par $10)
to be offered to common stockholders of record April 5,

duction.

(*4/10)

.

each ten shares

March 7 filed 150,000 shares of common stock (par $7.25).
Underwriters—To be determined by competitive bidding.
bidders:

(par
The

.

Feb. 21

Mountain

150,000 shares of preferred

$100) and 436,224 shares of common stock (par $8).

ments to

Morton Oil Co., Casper, Wyo.

March

filed

30

.

March 22 filed 200,900

(5/2)

gram.

March 30 filed 230,000 shares of common stock (par $5).
Price—To be supplied by amendment. Underwriters—

for construction program.

Street, New Haven 8, Conn.

Ohio Edison Co.

March

March 29 (letter of notification) $69,000 of 4%
bonds and 2,280 shares of class A (preferred

common,

.

new

construction.

Peabody Coal Co.

(4/17)

State Bond & Mortgage Co., New Ulm, Minn.A
filed $1,500,000 of accumulative savings certifi-s

cates, series 1207-A at $95.76 per $100 principal amount
and $15,000,000 of accumulative savings certificates, se¬
ries 1217-A at $85.68 per $100 principal amount. Under¬
writer—None. Business—Investment. Statement effective

March 29.

:

e

Strategic Materials Corp., Buffalo, N. Y. (4/10)1
April 3 (letter of notification) 100,000 shares of common
stock (par $1). Price—$3 per share. Underwriter—Ham¬
ilton & Lunt, Buffalo, N. Y. Proceeds — For working
capital for general corporate purposes. Office — 1330
Marine Trust Bldg., Buffalo 3, N. Y.
^
■»*

stock

160,000 shares of 5V2% prior preferred
(par $25). Price—To be supplied by amendment.
Underwriter—A. C, Allyn & Co., Inc., Chicago, 111. Pro¬

•
Super Electric Products Corp.
April 2 (letter of notification) $300,000 of insecured
6%
non-cumulative convertible
10-year
debentures.

ceeds—For construction program.

Price—At par

Piedmont Natural Gas Co., Inc.
Feb. 20 filed 125,000 shares of common stock

debt

March 26

filed

being offered to

common

at

(par $1)

share

rate

of

stockholders of record March 29

for each two shares held; rights
Price—$4.50 per share.' Underwriter
—White, Weld & Co., New York.
Proceeds—To con¬

expire

on

one

April 9.

struct and operate six lateral

pipe lines. Statement effec¬

tive March 29.

Plywood, Inc., Detroit, Mich.

(4/11)

March 15 filed $1,500,000 of 6% sinking fund debentures,
series A, due April 1,1963 (with 7-year warrants to pur¬
chase 150,000 shares* of common stock attached).- Price—To be supplied by amendment.

Underwriters—H. M.

Byllesby & Co., Inc., Chicago, 111.,, and P.W. Brooks &
Co., Inc., New. York.i Proceeds—To redeem 5% deben¬
tures to erert^lant and install equipments-

(in denominations of $100 each). Under¬
writer—Hugh J. Devlin, New York. Proceeds—To-retire
and for working capital.
Office — 46 Oliver St.,
Newark, N. J.
•

Telecomputing Corp., Burbank, Calif.
(letter of notification) 50,000 shares of;capital
stock (par $1). Price—$5.87Vz per share; UnderwriterHill, Richards & Co., Los Angeles, Calif.—Proceeds—For
working capitaL Office—133 East Santa Anita Ave., Burbank, Calif. Offering—Made publicly on March 28.
•.
■■
March 21

.

('

Telegift, Inc., New York (5/1)
March 20 (letter of notification) 60,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Underwriter
—None. - Proceeds—To establish-and operate a"Giftsn
by-Wire" service te be known as the Telegift Service,^
and for operating capital. ^Office-—^40 East 49th Street,
New York17,:>r ',r.

Volume 173

Number 5000

.

.

The Commercial and Financial Chronicle

.

*

►

Tennessee

Gas Transmission Co.

ment in

(4/10)

inarch 7 filed 100,000 shares of cumulative preferred
(par $100)

£tock

400,000

and

(1469)

-

shares Of

common

stock

Price—To be supplied by amendment. Under¬
& Webster Securities Corp. and White,
Weld & Co., New York.
Proceeds—To repay bank loan*
and for expansion of pipeline.

<par $5).

of

oversubscription. Price—To be supplied
Underwriters—Smith, Barney & Co. and
W. Baird & Co., Inc.
Proceeds — For property
case

•

March 23 company
sion for authority

additions and improvements.

writers—Stone

Wisconsin

Power &

Light Co.

(4/9)

March 23 filed 96,069 shares of common stock

(par $10),

to

be

of

record

March 29 filed "constributions to be made by employees

20

shares

of

subscribed shares to be offered to employees. Price—To

•

Tennessee

Transmission Co.

Gas

Thrift Plan amounting to $600,000
by company of The Thrift Plan."
Purpose—To provide a program whereby eligible em¬
ployees of company may further their own financial
independence.
the

guarantee

Farmers

Texas

•

the

to

company

and

Telephone Co.,

Proceeds—To rehabilitate rural telephone exchanges and

system.

Products,

Thompson
March 14 filed

Inc.

131,190 shares of

stock (par $5)

common

being offered to common stockholders of record April 3
basis of

on

one

amount of Westchester

supplied by amendment. Underwriters—Smith, Bar¬
& Co. and Robert W. Baird & Co., Inc. Proceeds—

gage bonds due

ney

For

property additions and improvements.
Wisconsin Power & Light Co.

1981.

Underwriters—To be determined

Probable bidders: Halsey, Stu¬
Inc.; The First Boston Corp.; Salomon Bros. &
Hutzler; Glore, Forgan & Co.; Smith, Barney & Co.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Union
Securities
Corp.;
Equitable
Securities
Corp.
about

For

construction program.

Bids

—

•

Office—31

Carleton

St.,

•

United

March

States

filed

28

Glass

voting

Co., Tiffin,

trust

representing

98,641 shares of common stock (par $1) to be issued
der a voting trust agreement dated Oct. 10, 1950.
•

un¬

None.
to

retail

druggists and for, working
,70 Jennings St., Fort Worth, Texas.
United Wholesale

<

capital.

Office

—

of

$10,000,000

first

mortgage

bonds. Under¬

Co.; Blyth & Co., Inc.; Harriman Ripley & Co., Inc.;

Shields

&

Co.

and

Salomon Bros.

None. Proceeds—To purchase merchandise for resale to
druggists and for working capital, Office—505 Whitehall
St., Atlanta, Ga.
V

mortgage

pansion

Denver

Bids—Tentatively

program.

expected

to

Loeb &

be

Sept. 11.. Registration—About Aug. 10.

on

•

American

Natural

Co.

redeem

on

both

with

subsidiaries

necessary

equity

funds

mon

stock

on

a

No underwriting likely to be

Underwriter—None.

War

of

ment

;

Underwriter—None.

mine.

Location

—

Proceeds—For develop-

War

Eagle

Mountain,

Idaho

Warner-Hudnut, Inc.

(4/11-12)
March 26 filed 320,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Underwriter —
F. Eberstadt & Co., Inc., New York. Proceeds—From sale

—

Eastern

underwriter: Union Securities Corp.

Proceeds
in part, construction expenditures,

March 21

Utilities

185,000

shares

to

be

used

to

reduce

bank

loans

to

$2,000,000 from $5,400,000, the company's principal stock¬

holder

to receive the proceeds from the sale of the
maining 135,000 shares.
:

.

<

•

Warren

re-

(Ohio)

Telephone Co.
March 23 (letter of notification) 3,000 shares of $5 divi¬
dend preferred stock (no par) to be offered for subscrip¬
tion by present stockholders in ratio of 0.27695 of a
share for each share held.
writer—None.

Price—$100

Proceeds—To

share.

per

reimburse

the

Under¬

company's

construction costs.

122,400 shares of

to be offered to
on

basis

writers—The

(no par),

stockholders of record March 27,
share for each five shares held;

common

of

one

per

share. Under¬

First Boston

Corp., New York, and John¬
ston, Lemon & Co., Washington, D. C. Proceeds—To re¬
pay short-term debt and for construction program. State¬
ment effective March 28.
•

Wellington Fund, Inc.
March 30 filed 2,000,000 shares of
market.

v

Whitehall

1951,

Union

private placement through
and Smith, Barney & Co.
by

Boston

Jan.

J.

30,

;

.

.

,

as

Edison

of bonds and

$12,500,000 of preferred stock and obtain a
$3,500,000 bank loan (for construction purposes). Prob¬
able bidders: Halsey, Stuart & Co. Inc. (for bonds
only);
Lehman Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Glore, Forgan & Co,'
and Har¬

Co.

announced that

President,

Toner,

V.

Valley Gas & Electric Co. The surviving
corporation will issue and sell to the public $28,000,000

Corp.

Securities

com¬

plans to issue $32,000,000 of securities to aid in
financing its construction program, which, it estimated,
pany

will

cost

common

$65,300,000 through 1954. He added that
stock financing is planned until 1955.

riman

Ripley & Co., Inc. (jointly). Proceeds would be
retire bonds, preferred stock and bank debt of

to

used

no

subsidiaries

Carolina Natural Gas Corp., Charlotte, N. C.

Feb. 20

the

and

mated cost of the

remainder

used

for

construction

Inc.,

New York

Proceeds—For investment..{[ $•

it

authorized

was

announced

common

competitive

Wisconsin Power & Light Co. (4/9)
23 filed 10,000 shares of cumulative

March

preferred
(par $100), to be offered for subscription by pre¬
ferred stockholders of record April 2, subject to allot¬

stock




Blyth

bidders:

&

was

Inc.

t

reported that corporation

issue and

Probable bidders for debentures: Halsey,

Stuart

& Co. Inc.; Morgan,

Stanley & Co.; Kuhn, Loeb & Co.;
Salomon
Bros. & Hutzler; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly). Probable bidders for common stock, in event
of competitive bidding: Morgan Stanley & Co.; Goldman,
Sachs & Co. and Union Securities Corp. (jointly); Mer¬
Lynch, Pierce, Fenner & Beane; Lehman Brothers;
& Co. and R. W. Pressprich & Co. (jointly).

Commonwealth
Jan.

10

it

was

$181,000,000
securities.

expansion program.

ities

additional

the

contemplates
through the sale of

company

financing

Neither the nature

nor

shares

stock

to

(par $7.50) was
2,500,000 shares

Union

Corp.;

Securities Corp.
Probable under¬
stock. Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane.
^
writers

•

for

•

common

Florida Power

March 29 it
000

to

Corp.

stated company expected to sell $8,000,$10,000,000 of new bonds this summer. Under¬
was

t

writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody

Co., and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Smith, Barney & Co.; The First Boston Corp.;
W. C. Langley & Co. and Glore, Forgan & Co.
(jointly).
Proceeds—For expansion program.

Georgia Power Co.
Jan.

8

the time of the new

it

was

$20,000,000 of

(6/5)

reported company may issue and sell
first mortgage bonds. Underwriters—

new

To be determined

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Drexel & Co.; Lehman Brothers; Harriman Ripley St
Co. Inc.; Shields & Co. and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc. and Kidder, Peabody & Co*
(jointly); The First Boston Corp.; Kuhn, Loeb & Co.;
ders:

Union

Edi$on Co.

announced

common

1,600,000

&

may

sell $35,000,000 of new securities in the Spring or early
summer.

from

preferred stock (par $100) from 120,250,000 shares. Underwriters for preferred stock
by competitive bidding. Probable bid¬
ders may include Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Salomon Bros.
& Hutzler; Harriman Ripley & Co., Inc.; Equitable Secur¬

Co.,

(jointly); Kuhn, Loeb & Co.; Carl M. Loeb, Rhoades &
Ladenburg, Thalmann & Co. and Wertheim & Co.
(jointly). Proceeds—To be "used to assist subsidiaries
to finance a part of their construction program. Stock¬
holders will meet on May 15.

it

Corp.

to be determined

Co.;

7

Power

000 to

plans to increase

Inc.; Smith, Barney & Co. and Harriman Ripley & Co.,
Inc. (jointly); Lehman Brothers and Lazard Freres & Co.

Dec.

,

and the authorized

company

Probable

Florida

increased

stock (par $5) from 8,000,000 to 10,-

bidding.

'•
contemplating
,

March 29 the authorized

000,000 shares and offer additional common stock to com¬
mon stockholders. Underwriters—May be determined by

rill

•«

•

Central & South West Corp.
23

Inc.

new financ¬
ing. Underwriter—Glore, Forgan & Co., Chicago, 111.

by the sale of first mortgage bonds and the
issuance of junior securities. Underwriters may include
R. S. Dickson & Co., Charlotte, N. C.

Shields

1

Englander,

Feb. 19, it was reported to be

financed

March

Utilities Associates

See Eastern Edison Co. above.

proposed facilities is $3,595,295, to be

Proceeds will be used for

Fund,

Eastern

fourth amended application was filed with the

a

SEC for authority to build a natural gas pipeline system
to serve certain areas in North and South Carolina. Esti¬

stock (par $1).

April 2 filed 70,000 shares of capital stock. Price—At
market. Underwriter—Broad Street Sales Corp., New

-/York.

.•

of Blackstone

Proceeds—For

common

Underwriter—None.

investment.
•

,v

.

acquisition by this company (organized on Feb. 16,
Eastern Edison Electric Co.) of the properties
Co., Fall River Electric
Light Co. and Montaup Electric Co. and all the securities

City Electric Co.

Columbia Gas System,
stock

common

.rights to expire April 11. Price—$24.10

.Price—At

Co.

April 10 vote on a proposal to increase the authorized
cumulative preferred stock from
100,000 to 150,000
shares. Previous preferred stock financing was handled

Washington Gas Light Co.
March 8 filed
1951

Edison

amended plan of reorganization of Eastern
Associates was filed with SEC which provides
an

and business of Brockton Edison

—

of

company plans to sell ap¬
of first mortgage bonds early
Underwriters—To be determined by competi¬

Jan. 29, it was announced that the stockholders will on

/

(Idaho)

County, Idaho.
-

announced

was

program.

Eagle Mining Co.

share.

it

for the

Proceeds—For

March 20 (letter of notification) 1,000,000 shares of non¬
assessable capital stock (par 5 cents).
Price—25 cents
per

series

program.

investment.
'•

new

Probable bidders: Halsey, Stuart & Co.
Inc.; Coffin & Burr, Inc., and Spencer Trask & Co.
(jointly); Morgan Stanley & Co.; The First Boston Corp.;
Dillon, Read & Co. Inc. Proceeds
For construction

l-for-10 basis held around May or June.

be used to pay,

Atlantic

Investing Corp., New York
200,000 shares of capital stock (par $1).

market.

19

this Fall.

which, it is estimated, will total about $5,400,000 in 1951.

Street

Price—At

for par, for the proposed

tive. bidding.

Probable

will

the deal." Proceeds—To develop uranium deposits in the
Montreal River area in Algoma, Ontario, Canada.

-

par

proximately $35,000,000

for

City Electric Co.
Jan. 15 it was stated tentative plans call for the raising
of about $2,250,000 through an offer of additional com¬

Co., Van Dyke, Mich.
•March 23 filed 500,000 shares of common stock. Price—
At par ($1 per share). Underwriter—None, but company
has negotiated with Titus-Miller & Co., Detroit, Mich.,
which "is seeking other dealers to cooperate with it in

Wall

Lake income mortgage 3%-4%
bonds,
1, 1993. Holders of these two issue may

Detroit Edison Co.
March

Atlantic

Uranium

March 28 filed

Salt

Jan.

B bonds.

involved.

Druggists of St. Louis, Inc.
:March 22 (letter of notification) 1,127 shares of capital
stock
(no par).
Price—$50 per share.
Underwriter—
None. Proceeds—To purchase merchandise for resale to
druggists and for working capital. Office—3901 North
Kingshighway Blvd., St. Louis, Mo.

•

&

due

exchange them,

Gas Co.

Woolfolk, Chairman, said it is ex¬
pected company will make an additional offering of
common
shares to its stockholders during the year to

United Wholesale

Van Lake

Proceeds—Together with treasury funds, to
1, 1951, $35,062,200 outstanding first
3%-4% bonds, series A, and $8,666,900 of
June

March 30, William G.

,

?•

Western

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,

& Hutzler

(jointly);
Drexel & Co.; Union Securities Corp. and Equitable Se¬
curities Corp. (jointly); Kidder, Peabody & Co.; The
First Boston Corp.; Lehman Brothers. Proceeds—For ex¬

their expansion programs.

Druggists, Inc., Atlanta, Ga.

Grande

be determined

6, it was stated that company contemplates issuance
sale

provide

March 21 (letter of notification) 1,106 shares of preferred
stock.
Price—At par ($25 per share).
Underwriter—

Rio

&

(9/11)

United Wholesale

;stock

Denver &

writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley

March 28

•

•

Feb.

opened

Druggists of Fort Worth, Inc.
(letter of notification) 2,144 shares of capital
(no par).
Price—$50 per share.
Underwriter—
Proceeds—For purchase of merchandise for resale

May 14.

Bids will be received up to noon
the purchase from the

and

Cambridge,

Ohio

certificates

on

RR.
(4/18)
(CST) on April 18 for
company $40,000,000 first mort¬
gage bonds to be dated May 1, 1951, and to mature on
May 1, 1981. They must be made to the company, in care
of Messrs. Sidley, Austin,
Burgess & Smith, special coun¬
sel, 11 So. La Salle St., Chicago 3, 111. Underwriters—/To

Alabama Power Co.

•

field.

Bids-^-To be received

Dayton Power & Light Co.

March 23 it was announced
company estimates con¬
struction expenditures in 1951 at
$22,636,100 and at $19,-

April 17.

Prospective Offerings

March 22

mechanical

ex¬

427,300 in 1952.

on April 17. Price—$31 per share. Underwriters—
Smith, Barney & Co. and Shields & Co., New York, and
McDonald & Co., Cleveland, O. Proceeds—For working
capital and general corporate purposes.

Mass.

was

construction program.

Expected

expire

Ultra-Mechanisms, Inc., Cambridge, Mass.
(letter of notification) 57,500 shares of com"mon stock. Price—At par ($5 per share). Underwriter—
None. Proceeds—To develop engineering in the electro¬

it

& Co. and Paine,
Webber, Jackson & Curtis (jointly);
Dillon, Read & Co. Inc.; Blyth & Co., Inc.; The First Bos¬
ton Corp.; Morgan
Stanley & Co. Proceeds—To finance

share for each eight held; rights to

new

Gas Co. (5/14)
reported that early registration is

of

$50,000,000 25-year sinking fund debentures.
Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld

art & Co.

—

13

pected

"

by competitive bidding.

Proceeds

Lighting Co. 3y2% general mort¬

1967.

Consolidated Natural
March

(4/17)

filecj $4,000,000 of nrst mortgage bonds, series

E, due April 1,

March 26 (letter of notification) 13,000 shares of capital
stock. Price—At par ($5 per share). Underwriter—None.

stockholders
share for each

common

April 2, 1951, on basis of one
held, with rights to expire on April 23. Un¬

March 23

Inc.,

Belton, Tex.

?:

be

offered, for subscription by

Consolidated Edison

Co. of New York, Inc.
applied to New York P. S. Commis¬
to issue and sell $25,000,000 of first
and refunding mortgage bonds, series
H, due May 1,
1981 (in addition to $40,000,000 series G bonds filed with
the SEC on March 30). Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan
Stanley & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld
&
Co. (jointly).
Proceeds — To redeem a like

by amendment.
Robert

45

Securities

(jointly).

Corp. and Equitable Securities Corp.
Proceeds—For construction program. Bids—

Tentatively expected to be opened
Green Mountain

on

June;5.

Power

financing has.,been

Corp., Montpelier, Vt.
Feb. 23 amendment to plan for reorganization was filed.

bonds

or

This

& Co.

Proceeds ere,to be used for construction program.

determined. Probable bidders for
Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Glore, Forgan & Co.; Morgan Stanley
debentures:

plan,

among

things,

other
,

:

provides

Continued

for
on

sale

of

page

46

46

The Commercial and Financial Chronicle

(1470)

underwriters, subject to the right of present preferred

bonds, due $100,000 each April 1 from 1952 to 1971, inclu¬
sive.
Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;'
Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner &

stockholders to subscribe for the

Beane

Continued from page- 45 r
i

......

.

,

104,094 shares of

.

stock (par $10) through

new common

new

shares.

(jointly); Kidder, Peabody & Co. Proceeds—To
bank loans and for new construction.

pay

Gulf Power Co.
Feb. 6, it was reported that this company may sell se¬
curities "for new money" this year. In event of preferred
stock issue, probable bidders may be Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; Union Securities Corp. and
Hutzler
(jointly); Harriman Ripley
definite plans have not as yet
Idaho

Salomon Bros. &
& Co., Inc. But
been formulated. .» '

500,000 through sale of securities this year. It is believed
this financing will be through sale of mortgage

bonds and preferred stock. Bond financing may be pri¬

while preferred stock

be underwritten by
Wegener & Daly Corp., Boise, Idaho. Proceeds would go
toward expansion program, which, it is estimated, will
cost nearly $23,000,000 for 1951.
•

Illinois Central RR«

may

(4/19)

Bids will be received up to noon (CST) on
the office of the company, Room 30, 135 East

April 19 at
11th Place,
Chicago 5, 111., for the purchase from it of $6,800,000
equipment trust certificates, series EE, to be dated
April 1, 1951, and to mature in 20 equal semi-annual in¬
stalments.

Probable bidders:

Halsey, Stuart & Co. Inc.;
Harriman Ripley
& Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; The First Boston
corp.
'
•

Indianapolis Power & Light Co.

March

26

it

stockholders

announced

April 17
increasing authorized preferred stock (par
$100) from 150,000 to 250,000 shares and authorized
common stock (no par) from 1,500,000 to 2,000,000 shares.
No imminent financing planned. Probable underwriters
will

for

vote

was

on

on

stock

common

Lehman

issue:

Brothers;

Sachs & Co. and The First Boston Corp.
•

Iowa

Public

/

Goldman,
^

>

to finance its 1951 construction program.

Kansas City Power & Light Co.
Feb. 7, Harry B. Munsell, President, announced
company
expects to raise $15,p00,000 of new money through the
sale of new securities, including from $5,000,000 to

$8,-

000,000

preferred

stock and bonds.

stock,

and' the

Probable

remainder

common

bidders for preferred

stock:

Glore, Forgan & Co. and W. C. Langley & Co. (jointly);
Smith, Barney & Co.; The First Boston Corp.; White,,
Weld & Co., Shields & Co. and Central
Republic Co.:
(jointly); Harriman Ripley & Co., Inc.; Salomon Bros. &
Hutzler

and

Merrill

Lynch, Pierce, Fenner '& Beane
(jointly); Union Securities Corp. and Stern Bros. & Co.
(jointly). Probable bidders for common stock: Lehman

Brothers; Glore, Forgan & Co.; Harriman Ripley & Co.,

Inc.

Kansas-Nebraska Natural Gas Co., Inc.
15, it was announced that company plans to raise
$4,200,000 through the sale of debentures or first mort¬
gage bonds in the spring of 1951 (this is in addition to

Feb.

recent

sale of 10,950 shares of $5 cumulative
preferred
stock (no par) at $105 per share
plus accrued dividends
and 133,812 shares of common stock
(par $5) at $15 per
share (the latter to common
stockholders). The bond

financing early last

placed privately through
Central Republic Co.
(Inc.), Chicago, 111. The proceeds
are to be used for the
company's expansion program.
year

was

Lake Shore Pipe Line
Co.,
Feb.

15

struct

FPC

and

natural

gas

Cleveland, Ohio

authorized this

company to acquire, con¬
operate pipeline facilities which will carry
into northeastern Ohio for the first time.

Financing plan includes the issuance and sale of
$1,075,000 in bonds to Stranahan, Harris & Co.,
Inc.,
Toledo, O., $225,000 in preferred stock and $150,000 in
common

stock.

Medusa
March

20

authorized
000

common

stock

Although

to

increase

the

no

immediate

issuance

of

the

unissued shares is
planned, the company may
need additional capital in connection with
its expansion
program, which, it is

estimated, will cost $500,000.

Minneapolis-Honeywell Regulator

increased authorized preference
by 50,000 shares to 160,000 shares and the author¬

common

stock

to

3,440,000

shares

from

shares.

Mississippi Power

Co.

3,300,000

(7/17)

F°^gan ^ C°- an<* Sterne,

Langley & Co.,
Agee & Leach (jointly);

Blyth & Co., Inc.; The First Boston
Corp.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman
Brothers; Union Securities Corp. and Equitable Securi¬
ties Corp.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane.
Proceeds—For construction
program.
Bids—
Tentatively expected to be received on July 17.
Regis¬

tration—Scheduled for June
•

15.

;

issue

and

1,

was

sell

1976,

announced

that

company

to

$3,000,000 of first mortgage bonds due
$2,000,000 of first mortgage serial

and




authorized capital stock to 2,500,000 frdfe

crease

shares.

1,000,000~

At present, the company

has 925,863 shares out¬
standing. The company's expansion plan, recently an¬
nounced, will sharply increase ingot capacity, pig iron
and

coke

output and finishing facilities. The additions
improvements afe to be completed over the next
five years.
' " *
"
"
*

company

•

-,

*

'/

Tennessee Gas Transmission Co.

March 6 it

was

reported company plans to issue and sell
of new bonds late this year (see pre¬

about $45,000,000

England Power Co.

Jan. 24 it

was

estimated that

$32,000,000 of

financing
will be required prior to Dec.
31, 1952 (including the
$12,000,000 of bonds filed with SEC). Between 70,000 to
80,000 shares of preferred stock may be initially offered.
Probable bidders: Harriman Ripley & Co.
Inc.; Lehman
Brothers; Kidder, Peabody & Co.; First Boston Corp.;
Merrill

new

Lynch. Pierce, Fenner & Beane: W. C. Langley
bank loans and foi

& Co. Proceeds to be used to
repay
construction program.

New

Feb.

and $1,500,000 of common stock to General Public Util¬
ities Corp., parent.
Underwriters—For preferred to be

determined

by competitive bidding. Probable bidders:
Co., Kuhn, Loeb & Co., and Lehman Brothers
(jointly); W. C. Langley & Co.; Smith, Barney & Co.
and Union Securities Corp. (jointly);
Kidder, Peabody
& Co. and White, Weld & Co.
(jointly); Salomon Bros
Drexel &

& Hutzler.

Proceeds

For

—

1951

Inc.; Stone & Webster Securities Corp. and White, Weld
(jointly).
'

& Co.

.

Texas

.

Eastern Transmission Corp.:.

Feb.

27 company was authorized to construct facilities
which will increase the daily
capacity of its system

by

465,700,000

cubic

This

feet to
approximately 1,206,500,000
project, it is estimated will cost $96,305,118, and includes approximately 791 miles of pipeline
feet.

extending

reported that company tentatively plana
sell $2,500,000 of preferred stock to
public

was

to issue and

vious columns for preferred and common stocks now in
registration). Underwriters—May be determined by com7
petitive bidding. Probable bidders: Halsey, Stuart & Co.

cubic

Jersey Power & Light Co.

19 it

construction program

a
connection with United Gas Corp.'s
Kosciusko, Miss., through Alabama, Ten¬
nessee, Kentucky, and Ohio to a connection with Texas
Eastern's existing system near Connellsville, Pa.
The
company's financing program includes the sale of $78,000,000 first mortgage bonds (to be placed privately), the
replacing of a $10,000,000 bank loan with a new bank
loan of $20,000,000, and the sale of $45,000,000 of
pre¬
ferred stock, $20,000,000 of which
already has been sold;

system

from

near

Traditional underwriter for preferred stock:
& Co.

Expected late Summer and early Fall.
New

York, Chicago & St. Louis RR.

Feb. 27 it

issue of cumula¬
tive preferred stock which may be offered in
exchange
for the present $36,056,700 of $6
preferred stock. Prob¬
able bidders: Blyth & Co.,
Inc.; Smith,
a

new

Dillon, Read

Inc., New York.

United
•

March 29 stockholders authorized

Gas

Corp.

announced

was

company plans to issue $145,7
000,000 debt securities and will loan the proceeds, to7
gether
with
other funds,
to
its subsidiary,
United

Gas Pipe Line Co.
the

total of

a

$150,000,000 to be used for

latter's construction program.

Probable bidders for

bonds:

Oklahoma

Gas &

Electric Co.

Dec. 20 D. S. Kennedy, President, said
company is con¬
sidering refunding outstanding $6,500,000 5%% cumu¬
lative preferred stock (par $100) with an
equal amount
of preferred stock with a lower dividend rate and
may
Issue additional common stock (par $10)

provided

ket conditions warrant such

mar¬

action, to finance construc¬

tion

program. Probable underwriters: Lehman Brothers;
Smith, Barney & Co.; Harriman Ripley & Co. Inc.
•

Panhandle

April 3 it

was

Producing & Refining Co.

understood that part of this stock is
being purchased for
investment and the major portion will be

publicly of¬

filing of

registration statement.

a

or

1951

imately 1,000 miles of pipeline, at a total estimated cost
of $111^861,749.
Company will finance construction by
borrowing $150 000,000 from its parent, United Gas Corp.
(which see above).
;
: ;

construction program.

Utah

March

8

writers—To be determined by competitive
bidding. Prob¬
bidders: (1) For bonds: Halsey, Stuart & Co.
Inc.;

Expected late Summer

Peabody

&

& Co.; Lehman Brothers, and Bear,
(jointly); White, Weld & Co.; Salomon
Bros. & Hutzler; First Boston
Corp., and Blyth & Co.,
Inc. (jointly); Union Securities
Corp., and Smith, Bar'ney & Co. (jointly); and (2) for stock: Blyth & Co. Inc.;
W. C. Langley &

ly):

Kidder,
Fenner

•

Victor Chemical

of

Virginia Electric & Power Co.
March 6 directors announced tentative
plans for the sale
of approximately
450,000 shares of additional common

stockholders at rate of one new share
shares held.
Price—To be determined by
other conditions.
Underwriter
Stone &
Webster Securities
Corp., New York. Proceeds—For con¬

market

10

and

struction

—

program.

Offering

—

June.

Tentatively planned for

•

Wagner Electric Corp.

March

19
stockholders increased authorized
stock from 600,000 shares
(499,016 shares

1,000,000
stock

for

expansion, together with the company's participation in
mine developments will result in additional
expen¬
ditures of over $150,000,000.
Rochester Gas &
March 21 company

Electric Co.

applied to the New York P. S. Com¬

mission for authority to issue $5,000,000 of first
mortgage
bonds and' 150,000 additional shares of common stock

one new

share for each

common stockholders
seven

be placed privately, with the

in

issuance

order

"when,

to

as

make

available

common

stock

additional

and if it should

advisable."

'

be

Washington Gas Light Co.
March 8 it

was

announced

proximately $9,000,000

con¬

"...

" 'f

that

company may issue ap*
of bonds or obtain bank loans
(or

some combination
thereof) during 1951 and apply the
proceeds toward its construction program.
Probable bid¬
ders for bonds: Halsey,-Stuart & Co.
Inc.; Blyth & Co.,
Inc.; Smith, Barney & Co. and White, Weld & Co.

(joint¬
ly): W. C. Langley & Co. and The First Boston
Corp.
(jointly). (See also registration of 122,400 shares of com¬
mon

stock under

"Securities in Registration" in

ceding column.)

a

pre¬

-

a

shares held). Bonds

underwritten by The First Boston Corp.
construction.

on

common

outstanding) to

shares

.

ore

new

common

each

Republic Steel Corp.

April 2 company announced it has started on a $75,000,000 expansion program in Cleveland, O. Other
plans for

may

private
$4,000,000 of 20-year sinking fund notes, to be
expansion program.
^

toward

a

Brothers; Kidder, Peabody & Co.; Harris, Hall & Co.
(Inc.); Glore, Forgan & Co. and W. C. Langley & Co.
(jointly).
•

Works

March 30 it was announced
company plans to issue and
sell 100,000 shares of new convertible
second preferred
stock (par $50). Underwriter—F.
Eberstadt & Co.', Inc.,
New York. Proceeds—Together with
funds from

for

reported issue of $15,000,000 new bonds are:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and Smith,
Barney & Co. (jointly); The First Boston Corp.; Lehman

Bros.

& Beane (jointly). Proceeds — To
repay bank
loans and to provide additional construction
funds.'
*

stock to

Colorado

Nov. 1, J. E. Loiseau, President, announced that "it will
be necessary to raise additional funds for
construction
purposes in the second quarter of 1951.
The amount
needed is estimated at about $7,000,000." Probable
bid¬
for

Co., and Glore, Forgan & Co. (jointly);
Corp., and Smith, Barney & Co. (joint¬
& Bear, Stearns & Co.'
(jointly);
Peabody & Co., and Merrill Lynch/ Pierce,

Lehman

Pitney-Bowes, Inc.

was announced
company plans to sell addi¬
tional convertible preferred stock from time to
time for
"new money."

Co.

Union Securities

sale

of

'J

during 1951 pro¬
issue and sell 200,000 shares of common stock
and estimated $10,000,000 of first
mortgage bonds. Under¬
to

poses

used

Public Service Co.

Power & Light Co.
it was announced
company

Stearns

was

early Fall.

•

Feb. 27 FPC authorized company to
carry out an expan¬
sion program, which will include construction of
approx¬

Kidder,

reported company plans to issue and sell
$3,000,000 of first mortgage bonds, $2,500,000 of preferred
stock and $2,500,000 of common stock
(latter to General
Public Utilities Corp., parent). Underwriter—To be de¬
termined by competitive bidding.
Probable bidders for
bonds: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.;
Merrill Lynch, Pierce, Fenner &
Beane; Union Securities
Corp. and White, Weld & Co. (jointly); Equitable Secur¬
ities Corp.; The First Boston
Corp.; Kuhn, Loeb & Co.,
Lehman Brothers and Drexel & Co.
(jointly); Harriman
Ripley & Co., Inc. Probable bidders for preferred stock:
W. C. Langley & Co. and
Glore, Forgan & Co. (jointly);
Kuhn, Loeb & Co.; Smith, Barney & Co.; Kidder, Pea¬
body & Co.; Harriman, Ripley & Co., Inc. Proceeds—
For

Pipe Line Co., Shreveport, La.

able

Pennsylvania Electric Co.
Feb. 16 it

•

United Gas

.

202,500 shares of Panhandle stock held by Atlas
Corp. to a group headed by White, Weld & Co. It is

fered after the

Halsey, Stuart & Co. Inc.; Dillon, Read & Co. Inc.;
Equitable Securities Corp.; Harriman Ripley & Co. Inc.
and Goldman, Sachs & Co.
(jointly); The First Boston
Corp. ■
/•

announced arrangements have been made

to sell

basis of
proposes

;vV

,

and

(the latter for subscription by

Montana-Dakota Utilities Co.

April

Sharon Steol Corp.

sidered

Feb. 6, it was reported that this
company contemplates
the issuance and sale of
$4,000,000 of preferred stock
(par $100). Underwriters—To be determined
by competi¬
tive bidding. Probable
bidders: W. C.

March 30 it

Michigan, Coldwater,

sought FPC authority to construct
pipeline, at an estimated cost of $1,500,000, to be financed by issuance and sale of first mort¬
gage bonds.

ders

Co.

March 27 stockholders
ized

6

Thursday, April 5, 1951

.

about 76.7 miles of

(no par) from 250,000 to 500,-

277,583

stock

of

.

March 27 .stockholders vpted to increase the-debt-limit of 55
the company to $30,000,000 frbm;$15,0O(f;OOO ahd to iri-f

March 29 it

Portland Cement Co.
the
stockholders
voted

shares.

Co.

Barney & Co.

Service Co.

March 23 the company's report revealed it is anticipated
it will be necessary to provide about $4,000,000 new
money

March

New

that

Utilities

Michigan

Power Co.

Feb. 6, it was reported that this company will raise $18,-

vate,

National

,

issue

Proceeds—For

•

Wyoming-Gulf Sulphur Co.

March 26 it

was

(4/16)

reported sale of 260,000 shares of com¬
mon stock to residents of
Texas only is contemplated on
April 16. Price—$1.15 per share. Underwriter—Beer &

Co., Dallas, Texas.

,

Volume 173

The Commercial and Financial Chronicle

Number 5000

bankers

Continued jrom page 5

mand

3U-'

ment of

gross

important

another

is

total of five bids,

a

successful

syndicate

ele¬

Corporate bond
been

not

in

the

"government

101.559

for.

winner

the

pitch.

the

set

was

broke through the low-

sun

bid 100.459 for
The reoffering
at 101.421 to yield 3.30%.

runners-up

same

Here

coupon.

again the

of a

response was

!; hanging overcast which has kept nature to spread cheer.
/the new debt issue market almost
'at

mite

Not

ceiling-zero, this week bringing

<a

cheer

of

dealers

whose

spirits

quite

been

But

underwriters

to

low

brisk

the clouds.;

as

as

have

for

small

two

than

might ordinarily have

case.

The

;

-

•

that these

been

.

in the na¬
I lip before the bidding started.
ture of "special situations."
That
But actual response was better is both were spoken for quickly
than expected with three groups by large accounts and therefore
facing the deadline on one issue provided little in the way of a
/ and four submitting

bids for the

real test of investor attitude gen¬

second.

erally.

u

it.-

Four

ter

had

County Electric Co.'s $12,000,-

paying

for

4 next bid

successful

company

314%

a

was

little

noticeable

no

effect

market'

bids

reported

for

of

price

a

where

high-grade utilities.

cover

t

Notice

,

tion,

in

is

hereby given that TUNG-SOL LAMP WORKS INC.,

pursuant

to

accordance

redeem

with

the

at

resolution

the

office of

its Board

of

terms

of

United

its

of

Directors

Certificate

States

adopted

of

Corporation

a

payment

Dividend
for

To

Delaware

Incorporation,

corpora-

1951

and

amended,

as

26,

will

Broadway, New York
May 1, 1951, 10,000 shares of its Cumulative Convertible Preference Stock
i at the redemption price of $17.70
per share
(which price includes an amount equiva38,

;

N. Y.,

Company,

160

on

lent to the quarterly dividend

payable

such date).

on

t

Holder® of shares of Preference Stock so called for redemption are advised that
auch shares may be converted" into shares of Common Stock of Tung-Sol Lamp Works
Inc.

•-

at

If,
i

the

time

any

rate

on

after

of

the

share

taking into

which has been

! thereof,

one

of

before May 1,

or

Common

1951.

Stock

each

for

share

Preference

of

obtain

relative

values

their

of

(free

this

holders

not

.•

than

May 1,

1951

to

convert

such

upon

request

either

they desire
obtained

together

Preference

from

■/Company.

[

opinion of

our

■

the

letter

a

Stock.

income

tax

but,

purposes,

redemption

will be

so

transmittal
of

Forms
or

letters

stating

transmittal

of

"

gain

such

shares

loss

or

are

1951

not

therein

from United States

l

-

counsel; any
if

of

corporation

Stock into Common Stock prior to May 1,

ence
on

•

the

In

with

realized

be

.■

of

Prefer-

recognized for federal

will not be

converted,

may

Corporation

conversion

on

that

any

gain

or

loss realized

recognized.

The particular shares to be redeemed have been

by lot and are represented

by certificates bearing the following numbers:
Certificates

),

for

100

Shares

Each

Bearing

Prefix

NP

427

870

2745

3621

4176

4635

4741

,4765

5275

5303

5566

5955

6130

6962

'691

2182

2792

3695

4177

4700

4750

4930

5277

5304

5639

5961

6472

*6963

768
.

2320

3212

4204

4701

4756

4989

5289

5305

5677

6006

6844

6966

778

2410

3479

3835

4421

4703

4764

5274

5300

5523

5877

6054

6951

be held

2744

3535

3391

3714

4486

Each

Bearing

321

519

896

323

526

905

on

the 11th

business

The

after

ORDER

day of March, 1951.
BOARD,

OF THE
A.

D.

McCORMICK,
SECRETARY.

Dividend
of

be entitled by
virtue of Article XIII(l) of the Double
Taxation

Treaty / between

United

the

States and the United Kingdom, to
credit

under Section
Internal

131

Revenue

tax

United

of the

Code

a

can

by

York

New

obtain

certificates

giving

C.

D.

120

in respect of devaluation surplus
mentioned
above
(£12,341,858
gross

will

The

of

Board

toward

year

pany's

profits

£321,750

fixed

reserve

other,

~

Dividend No. 188

•';/•

quarterly dividend of seventv-five cents
(75c) per share on all the outstanding stock of
the
Company
has
been
declared
payable
April 27, 1951 to stockholders of record at the
close of business- April 13, 1951.
OTTO

W.

Treasurer.

STRAUSS,

net

received

JOHN

MORRELL

enable

to

order

in

at

transferees

A

Bearer

will

paid

share

on

the capital stock of
John Morrcli & Co.

will

he paid

holders
shown

April 30, 1951, to stock¬
April 10, 1951, as

of record

the hooks of the

on

Ottumwa, Iowa

Company.

George A. Morrell, V. P. I Treas.

regis¬
receive

to

Warrants,

OTIS

divi¬

ELEVATOR

deposit of

against

Treaty

may

be entitled by

XIII(1)

Article

of the Double

between

Section

131

Revenue

of the

Code

Common Dividend No. 175

United

the

a

tax

A

United^
can

obtain

certificates

dividend
the

on

by

April

giving

on

share

per

Common
been declared, payable

28,

of record

particulars of rates of United Kingdom
Income Tax appropriate to the above

of'$.50

no

Stock has

application to Guaranty Trust Company
York

of Twelve

per

COMPANY

Stockholders who

Internal

CO.

One-Half Cents

($0,125)

Coupon No. 210.
of

dividend

and

'

regards
be

&

DIVIDEND NO. 87

June 1, 1951 will be in

dividends.

New

SCHNEIDER,

A

•

asset and
stock replacement
£ Nil (£1,500,000) to general
the
carry
forward
will
be

Transfers

of

1/

SUPERHEATER, INC.
—

(£989,997) and
£1,300,000 (£95,884)
to

tered office up to

States

May

COMBUSTION ENGINEERING.

(£3,806,580). Correspond¬
ing figures for the year ended Septem¬
ber 30,
1949 are given in brackets.

virtue

record

In

£3,896,239

dends

the

Vice-Pres. and Treas.

£1.187,888

to

As

on

dividends

allocating

time

of

A.

After paying the Final dividend amount¬

the

share

Per

1951.

(£321,750) and
totalling Two Shill¬
ings free of tax, Two Shillings per One
Pound Ordinary Stock have been paid,
totalling
£2,375,776
(£2,375,776).,
ing

at

Cumulative Preferred

holders

required

and

tax

Directors

able May 15, 1951, to stock¬

made during
settlement of com-.'

final

excess

of

Stock of the company, pay¬

replacement
reserve.
being
provision
United

longer

holders

to

quarterly dividend

a

$1.06J4

$4.25

been credited to fixed assets.

no

mailed

meeting held April 3,1951,.

a

above mentioned allocations

stock

be

declared

replacement reserve (£808,200 deval¬
uation
profit on exchange less tax

has

per

CORPORATION

leaf devaluation surplus of £1,850,678
transferred to fixed assets and stock

reserve).

de¬

WILSON, Assistant Treasurer,
Broadway, New York 5, N. Y.

subsidiaries
and
after
deducting all
charges and providing for taxation are
£5,275,073 (£5,389,638) exclusive of

exchange

1951.

has
this
day
Dollars ($2.00)

Two

COLUMBIA PICTURES

plus
£855,643 devaluation profit less tax).
Group charge for United Kingdom tax¬
ation amounted to
£7,059,428 (£7,274,003. The net profits of the company
for the year, including dividends from

value

par

1951, to

stockholders

the close of business

at

April 6, 1951.

Checks will be mailed.

mentioned dividend.

application to Guaranty Trust Company
particulars of rates of United Kingdom
Income Tax appropriate to the dividend

of

27,

Capital Stock who have filed suit¬
thqfefor at this office.

orders

during the year. Proportion of
these profits attributable to
company is
£13,184,569 exclusive of £4,347,446

to

COMPANY

March

Y.,

Directors

checks

Common

able

used

credit under

Stockholders who may

of

dividend

a

AND

TOPEKA

RAILWAY

share, being Dividend No. 153, on the Common
Capital Stock of this Company, payable June 1,
1951, to holders of said Common Capital Stock
registered on the books of the Company at the
close of business April 27, 1951.

stock

States and the United Kingdom to

Egham, Surrey.

Board

clared

replacement reserve
(Nil) devaluation surplus
predevaluation stocks of dollar leaf

Taxation

Rusham House,

FE

York', N.

New

£4,832,775
on

ATCHISON,

SANTA

group

are

and

assets
*

days

DATED the 29th

Secretary

Bruce H. Wallace, Treasurer

BRITISH-AMERICAN

New

York, March 28, 1951.

TOBACCO COMPANY, LIMITED.
March 28, 1951

payable the 30th June 1951.

6981

781

to

(excluding Satur¬
day) before payment can be made.

of
'

(subject

at the Annual

32, Lombard Street, London, E.C.2., five

States
selected

Income

dividend

for redemption and the Common Stock issuable upon conversion
of such Preference Stock determine to convert it, the certificates

therefor must be received by United States Corporation Company at its above address

of
Tax).

of
Ordinary Stock Warrants
deposit Coupon No. 210 with the
Guaranty Trust Company of New York,

called

.

later

of

£l

and after the 30th June

on

Stock

;

Ordinary

per

holders

Stock at

Preference

a

must

BY

the

of

1951

issued

being sanctioned

May next)

;

consideration

328,761)

reserve,

same

clear

}

the

the

ended 30th Septem¬

shilling

one

Stock

June

the

year

of

that

Report have

Stockholders

30th

on

the

1959

the

to

the

on

GIVEN

Annual

Checks will be mailed.
EDMUND HOFFMAN,

£15,157,824 (£15,deducting all charges
and providing for
foreign taxation ana
where appropriate United
Kingdom tax¬
ation and
after transferring to fixea
year

Interim

HEREBY

recommended

the

March

on

main open.

THE

the

absorb

General Meeting to
i

1951 to Stockholders of record at the close of
business April 19, 1951. Transfer "books will re¬

divi¬

taxation liabilities. Preference dividends

-

STOCK"

On March 27, 1951 a
quarterly dividend of
One Dollar per share was declared on the Com¬
mon Stock of this
Company, payable May 15,

Ordinary
total

Consolidated Net Profits of the
for

»there

NOTICE OF DIVIDEND TO HOLDERS OF
STOCK WARRANTS TO BEARER FOR

their

stage

CAN COMPANY
COMMON

progress

IS

market

AMERICAN

rec¬

annual

of British

issued

thereby restoring the

..,£1,000,000
BRITISH-AMERICAN
"
Kingdom taxation
TOBACCO COMPANY LIMITED as a result of

Ordinary

Stock

the

upon

v

in

the

undertaking

held

to

the

at

Ordinary Stock free

Tax

transferred

ORDINARY STOCK

reach

intended

now

stock

ar°Und Apr" 24 next'

to be held
May 11, 1951
June 30, 1951 of Final Divi¬
One
Shilling for each One

of

and

ber

Preference

a

DIVIDEND NOTICES

Stock
OF REDEMPTION

Convertible

should

it

big

DIVIDEND NOTICES

Directors
decided

was

stockholders

addition to

Directors

TUNG-SOL LAMP WORKS INC.
Cumulative

Deal

stock."

►

■if

Stock

big equity transaction

Final

NOTICE

:?■

Big

;

Despite the rather drab behav¬
ior of the equity market recently,

/ interest rate.

mean

projected of¬
fering of 369,643 shares additional

common

NOTICE

same

not

.

still

as

Southern Co. Common

The

coupon.

or

seasoned

observers

group

100.35 for the

.

quick disposal of the issues

scarce

the

100.633

/

the

.

the

on

j .000 of new 30-year first mortgage
bonds, with

,

The

went after Worces¬

groups

were

does

fixed peg.

a

with SEC to

matter seemed

fact of the

to he

they

into the picture this week
Pacific Lighting Corp. filed

when

issues

bond

Another

actual¬

came

which reached the deadline broke

that

Another

ly provided less basis for cheering

/syndicates originally organized to the

but

maintaining
out

the. aforementioned issues

(k It is true that several of the
I-bid

response

farmers,

"fixed floor" to

a

everyone else.
True the/Federal
still is obligated to "stabilize" the

the
to *the offering of
turned

the

Now, say the corporate traders,
they must figure pretty much on a
"two-way"
market,
same
as

market

Gold

All

things

as

Unlike

interim, it is

this

30, 1947.

for the

as

paying limit their possible losses.

3%% coupon.

a

reoffer

dend in respect of the year to that
paid
in respect of the
year ended September

ten years, the

or

boys"

longer have

no

.

The

that

on

Pound of

manner

they call
them, have got to get in there and

the

with

running

'

dend

governments have

first time in nine

devel¬

1951 it

to

payment

in recent years,

Potomac Edison
Co.'s $10,000,000 of 30-year bonds.
Here
three groups were
in the
with

oped

in the

group

meeting fixed

who have

men,

favored

that dealers in

quickly taken.
pattern

would

meeting of the

ommend

fixed

with the Federal
Open Market Committee
putting a virtual "floor" under the
Reoffering was set subject to Treasury market, are sort of lick¬
SEC clearance, at 101.54 to yield ing their chops at the moment.
3.17% to the buyer, and the issue
They contend that
same

a

Stock

now,

/and

At

Reserve

the

turn,

March 28,

Income

actually financing inflation!

Much

The

re¬

$10,804.

Back to Work

inconsistency, as well as extravagance, during this

was

in

underwriting

DIVIDEND NOTICES

the entire block promised to move
out quickly.

present alleged inflation emergency.
In the field of interna¬
payments and trade the American taxpayer is in the posi¬
tion of

an

47

of

stock

tional

'

which,

reoffering price of 11% for the
and, according to reports,

a

to

assuredly

situation

trade

company

The

continue the giving-away of
dollars and "for free," at
a time when we are allegedly making every effort to end short¬
ages and rising prices at home.
The fetish of that "favorable"
of

to

publicly. Unless conditions change

during the week.

ceived ranged down to

goods abroad,, both for our taxpayers'

balance

rectly

stock

common

highest fixing
a
price
$10.9851 a share. Other bids

continuing vital element of counter-

Company)

Products

1,000,000

the

Similarly is it "Schizophrenic Economics" (as termed by E. S.
Genstein in a current booklet "We Can Stop Inflation," published
Kem

The aim is to sell this stock di-

de¬

good

of

Offering of this block brought
the

deflation.

by

a

block

additional

market

for-the-other-fellow, in a number of ways. Witness his tradi¬
tional and unceasing demand—in and out of national emergencies
—for the tariff device to insulate him against price competition.
The -insisted-on tariffs are a

the

of the Southern Co. which reached

Observations.

k

encountered

for

shares

&-t

?!

(1471)

Certificates
1036
1043

for

I)

Less

1807

Than

100

3007

2521

Shares
3487

4049

4777

Prefix

5360

4811

Vanadium Corporation

NPO

5846

6024

OPERATING

6341

1836

2550

3161

3495

342

676

908

1143

1839

2626

3167

3503

4157 * 4836

5379

5899

6081

807

917

1164

2002

2793

3320

3628

4316

4893

5383

5900

6144

6382

377

813

945

1184

2039>

2849

3346

3821

of

America

6369

372

UNITS

4117

5377

5895

6038

6358

4325

4311

5407

5909

6175

6399

390

818

955

1226

2095

2851

3368

3934

4332

5222

5489

5910

6206

6400

404

836

968

1274

2133

2874

3386

3935

4487

5243

5565

5927

6212

6402

460

,843

979

1678

2135

2887

3433

3974

4637

5288

5579

5957

6279

AMERICAN

6418

481

859

980

1767

2234

2932

3434

4022

4639

5330

5779

6020

6320

864

982

1783

2298

2990

3443

4046

4774

5349

5835

6022

6322

6426

515

895

DAYSTROM

6419

483

TYPE FOUNDERS

981

-

LAMP

WORKS

Chairman

for

Harper,

of

the

Board.

1951.

the

100

an

extra

shares

represented

Upon

by Certificate

the surrender of such

for 47 shares and

a

new




No. 6963, 47 shares have been called
Certificate the redemption price will

certificate issued for the

Daystrom,

dividend of 50 cents

a

share, in addi¬

regular quarterly dividend of 25
cents per share, both payable May 15, 1951,
to holders of record April 27, 1951.
tion

redemption.

be paid

Incorporated
(formerly ATF Incorporated) have declared

The directors of

INC.

By Harvey W.

♦Of

ELECTRIC

DIVIDEND

Dividend Notice
TUNG-SOL

March 30,

Lexington Avenue, New York 17

420

EXTRA

to

a

DAYSTROM

At

a

meeting

FURNITURE

the

held

today,

was

**

declared

a

Corporation,

DAYSTROM
^

LAMINATES

holders

of

the

on

payable

record at

common

May
3:00

18,

Checks, will

Dated

March

26,

of

stock

1951,

to

m.,

of

the

stock¬
May 8,

mailed.
O.

Directors

cents per share

o'clock p.

be
B.

1951.

remaining shares.

March 27, 1951

Board

the

of

dividend of fifty

1951.

BRAND,

Secretary.

The Commercial and Financial Chronicle
48

.

.

Thursday, Aprir 5, 1951

.

(1472)

for innocent

BUSINESS BUZZ

students, and to. be

read by one another, and perhaps

also

little

a

advice

from

some

practical politicians.

on.

•

t

(This column is intended to

re¬

flect the "behind the scene" inter¬

A

Behind-the-Scene Interpretations
from the Nation's

WASHINGTON, D. C. — Now
the Administration has offi¬

he

and agreed

in

that

cially

forward

come

settle

to

1951's

for

demands

tax

$10 billion, the fact probably ,is,
however, that the Congress will
at most $6 billion and the
tax law will not be enacted final¬

enact

.

gJ

a

and may or may not coincide

Bankers Underwrite

cut

ground

few months.

Production
RFC
So

then.

Thompson Products
Deb. & Stock Offerings

Yet the Bank¬

Act, it cannot play
legislation until after
the
criticized
board

#'

*

of

*

'

V

&

RFC.

"

"

-

is

there

If

a

new

emergency,

By

1, 1971, at 100% plus accrued in¬
Simultaneously Thompson

Products, Inc. is offering to com¬

embraced

committee

$31

•

rest

of

basis

the

program

of

of

each

eight

underestimated, and will settle for

In

details

the

galore,

discovers that the Admin-- ization Act set

?ore

JEC

istrations of the last couple of
Need for Federal aid for health decades, more or less, only adopt
billion too low for fiscal 1952, the
services, baby tending, education, compensatory spending as a contax bill will then aim at $5 billion. and other sundries, was
depre- yenient ideological and philosophsis
%
(J:
cated.
The
committee criticized
excus® to_keep on spending.
escalator
clauses in union
conn<* ?? the OMahoney staff is
With the
attempts to reform

$6 billion of new taxes. If Con¬
gress figures the Treasury is $2

clashed

the

with

up a

Joint

derwritten

RFC, it is beginning to look as
though it were a case of too many
cooks spoiling the broth..

tracts.

that

control
be limited to applica-

said

It

should not

price

tion
only when farm products
reached parity prices. It opposed
Fulbright, the chairman
of the RFC Banking subcommit¬ appropriation of a huge sum for
direct construction of industrial
tee, wanted the single administra¬
The
committee
was
tor to run the works, and the abo¬ facilities.
even
most
doubtful of
the
St.
lition of the five-man, bi-partisan
board.
This is the plan which Lawrence seaway.
Senator

Truman

How

come

free

to

vote

in

conflict

with

the

recommendations, when pieces of

this phenomenon?

cure

reorganization plan

With

a

committee

of

a

probably will not change a vote. 90% a dead letter, Senator A. S.
*
*
*
; "Mike" Monroney (D-Okla.), is
The very existence of such a heading another inquiry into the
thing as the Congressional "Joint possibility once more of striving
Committee on the Economic Re- to "streamline" and "introduce
port," the full legal title of the business methods" into Congress,
committee, recalls that curious He will get tremendous advice

dozen

busy Congressmen, the only way

incidentally be¬
cause
they wanted to keep the
RFC scandal alive. It is improb¬

a

off RFC, and not

report like this gets written is

when

the

Chairman, in this case
Senator Joe, directs the staff to
able, however, that RFC can be prepare a report along such and
killed.
President Truman would such
lines.
Then
the
thing is
probably veto a bill to kill off batted around to the members to theoretical
there

are

if

could
not likely to
one

pass,

be

and
two-

thirds voting to override a veto.

until

modified

get

common

it reaches

denominator

of

endeavor, the Legis- from
learned
scholars
whose
lative Reorganization Act of 1947, knowledge of political science is
an endeavor which most Congress- gleaned from text books written

a

agree-

the

the RFC.

mor,

with Senator
bank serving notice that he
However,

to

operate

Maymeans




headed

subscription warrants and will
pire on April 17.

Thompson

leading

engine

of

range

for

Products,

manufacturer
and

Inc.

ex¬

is

FOREIGN

SECURITIES

automobiles, trucks and trac-*

tors; parts and accessories for air¬
craft

and

aircraft

engines;

and

parts for marine engines and for
industrial

*

uses.

A. M. I., Inc.
We Invite

Inquiries

Blair F.

Claybangh & Co.

Members

Philadelphia-Baltimore

Stock

N.

Y.

Exchange

Security Dealers

Association

Tel.: HAnover 2-7064 Tele: NY 1-2177

52 Wall Street, New

York 5, N. Y.

For

Large- Appreciation Potential
WE

SUGGEST

RIVERSIDE CEMENT CO.
GLASS B (common)
A

In

STOCK

leading producer of cement
fast-growing

Southern

California.

Analysis of this Company and
a

review of the Cement Indus¬

try available

on

request.

Selling about

$12.25

LERNER & CO.
Investment

10 Post Office

Securities

Square, Boston 9, Mass.

Tel. HUbbard 2-1990

Products
Prospectus

on

request

r*ARL MARKS & HO. INC,

natured cynic with a sense of hu¬
DeaP'

of

who had
as

the

political

FOREIGN SECURITIES SPECIALISTS

adopted the "Fair
most

salable

merchandise,

brand

in

SO BROAD STREET ILNEW YORK 4, N. Y.

his

TEL. HANOVER 2 0050...TELETYPE: NY 1-971

opinion.

Kill, Thompson & Co., Inc.
Trading Department

70 WALL STREET, N.
met m v
.

a

of a wide
other parts

Allied Electric

ever>

RFC, Senators are
This current report reflects gen¬
saying what is the use of trying to
entice a respectable individual to uine alarm over the dangers of
l>ecome single administrator when inflation,
so
in all probability
on

group

FIRM TRADING MARKETS

Joe O'Mahoney has given the
impression of being a rather good-

could be induced to take

job if he felt that he could
completely clean house and fix up

by the

McDonald & Co. The rights
to subscribe will be evidenced by

ment.

Hence the conservative drift In
Finally, Senator Burnet' Rhett
Maybank has announced that his all
probability
originated
with
Banking committee would like to O'Mahoney. The Wyoming Sena^
take over RFC and operate upon tor has always appeared publicly
in the past as one of the most ag¬
it, improving the agency.
The virtue of the single admin¬ gressive of the "Fair Dealers," and
istrator idea was supposed to be certainly has gone down the party
that a fresh gentleman of high line in. the past. Privately, how-

calibre

to

un¬

and

The Kefauver Crime Corn-

Its

for the express purpose of killing

even

-

being

an the terrible evils discov-

ered.

simplest explanation is problegislation come up. - - 7
mittee is the most brilliant curably
that
Senator
Joseph
C.
Since the Congressional Joint rent illustration of the obsolete
down by a majority of the mem¬ O'Mahoney and his top staff of Economic Committee has no pow- character of that injunction in the
bers of either House before April the Congressional Joint Economic er to initiate any legislation what- Legislative Reorganization Act.
Despite the fact that the Legis20, its effective date unless vetoed. Committee have got religion about ever, the report is merely "advice"
»•,
to the rest of the Congress, and it iative Reorganization Act is about
Then the Republicans decided this inflation business.

RFC,

common

offering
is

Budget

the past, these reports were usu- tees and direct that all investigaally endorsed by the signature of tions be operated by legislative
the members adhering. This in ef- committees, with power to introfeet leaves the members somewhat duce and sponsor legislation to

belatedly

adopted. He submitted a proposed
reorganization plan which would
become
effective
unless (voted

to oppose the

The
also

Smith, Barney & Co.

by

jointly

Congressional

Committee which
was supposed to adopt by Feb. 15
of €ach year a "budget" of total
revenues and expenditures. After
about one and one-half attempts
to. comply with this, Congress has
Probably disillusioned, too.
simply, by common consent, just
In terms of practical legislative ignored this,
significance, the report is of little
That same Legislative Reorganimportance. The "unanimous re- izati0n Act was supposed to abolport" was not signed, although in ^ special investigating commit-

Deal."

"Fair

stockholders

j

President

of

shares

the

on

share for

additional

held.

stock

stock

common

one

#

;

"

on

share, for 131,190 additional

a

shares

the
most
conservative
Truman "build¬ which
will be saved. If thinker on economic matters could
not, the retreat on taxes from adopt as his own, provided he
allowances
for necessary
$16.5 billion to $10 billion and ul¬ made
timately to $6 billion will be political lip service to, and rela¬
marked as the first step toward tively light criticisms of, certain
* ■
back-tracking from a total pro¬ "Fair Deal" programs.
gram involving such a load on the
Except for the readers of the
economy
as
to call into being occasional metropolitan daily,
price and wage, controls, taxes, most newspaper readers Monday
-And I just found out, Mr. Bullfangle, Sir, I didn't
and other measures the country, got the idea that the committee
win in the Sweepstakes after all—I misread my num¬
and
ultimately
the
Congress, had merely backed the idea of
ber—could you find it in your heart to ignore my hasty
could not permanently stomach. adequate taxes at the soonest pos—
resignation and the razzberry I gave you?"
Congress has for some time been sible moment to "pay-as-you-go"
V
V
thinking along the lines of $6 to for the defense program.
$8 billion from new taxes. When
The JEC report, however, went Senator Joe has become person- men would prefer to forgive and
they talk those figures, it is safe much farther.
It said that the ally and politically far more in- forget, were it not that there is a
to rely on the lower figure. Con¬ level of military spending was not terested in the prevention of in- current move already afoot once
gress figures it can "save" $3 bil¬ sacred, and that militray appro- flation than in the promotion of more "to reorganize Congress."
lion out of Truman's budget; $1 priations should not be made "un- the "Fair Deal"—at least at thb
The Joint Committee was supbillion by failing to enact that less and until" adequate tax reve- time. ,
7
posed to review the President's
much of Truman-recommended nues were in sight. The commitThen the staff members upon Economic Report, and recommend
"Fair Deal" proposals, and $2 bil¬ tee also pointed out that there was whom the Senator relies to put an economic program of legislalion by direct cuts in appropria¬ such a thing as too high taxes, and words to the music, are starry- tion, as though Congress would
tions.
that somewhere, maybe at 20 % of eyed Ph. D.'s who are ardent com- ever spotlight attention on purely
Then Congress will figure that gross national product at the out- pensatory spenders.
A compensa- economic instead of political conthe Treasury is wrong in its reve¬ side, there should be a limit on tory spender has to live and work sequences. It hasn't,
military spending.
in this capital for a year or so beThis same Legislative Reorgannue estimates by at least $1 billion

the

up"

record

April 3 the right to subscribe, at

program

a

of

stockholders

mon

"unanimous report" this

an

& Co. yes¬

(April 4) offered $15,000,-

terest.

majority

"build-up" period.

tion of the

McDonald

and

Thompson Products, Inc. :20-«
3^4% debentures, due April

year

through, then Congress probably of the Congressional Joint Eco¬
1 would work with speed and ft nomic committee to nearly 100%
might even, in a fervid emotional orthodox economics for the dura¬
state, boost the total take of the
tax bill.

Co.

000

•v

phenomenon in this capital,

a

in the conversion of the

investment bankers
jointly by Smith, Barney

group of

terday

something

occurred

has

A

headed

stay on despite the

best of intentions to reform

There

views.)

own

him by legislation

ing committee will be so tied up
until June 20 with the Defense
with

"Chronicle's"

the

.

is always providing, of
course, that the Reds don't oblige
with a brand new emergency. If
those hundreds of thousands of
Chinese
Reds
suddenly break
TJhis

pretation from the nation's Capitalt
with

flli

M

JL Cr

the

have

might

out from under

members may

ly before Fall.

.

—^

xJL § IfA/

Capital

Tel. WHitehall

4-4540

Y. S