The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
business
administration
6*2/
librari
over-the-counter market featured in this issue
Commercial
Reg. U. S
Volume
New York
Number 5314
179
EDITORIAL
The titular head of the Democratic
a
party made
distributed
widely
Professor of Economics,
about what
address is
in his
man
people
the
among
the
of
be
to
was
expected of
a
in the glib phrases the public has come to ex¬
up
pect of this speaker, and was largely given over
the
to
of
sort
also left the audience and the
what
—
was
said
was
the
Democrats
achieved
All
this, of
as
two
is the usual political bun¬
such is definitely not worth wast¬
course,
ing much time with.
found
in
this
There is, however, to be
deliverance
of Mr. Stevenson
an
embodiment of certain basic and at times subtle
fallacies which
are
responsible for much of the
"creeping socialism" of the New Deal and of the
ITair Deal, a hazard which unfortunately lingers
with us under the present regime.
We ardently
wish we could say that such notions as these are
confined to Democratic thinking, but we are much
afraid that this intellectual virus has spread
much farther.
It is for this
reason
that
we
the first
the radio
first
practical
1946, it
some
arguments
middle
shall
page
application
is
the
—
which
forties.
still
Few
the
Let
me
Chemical Bank & Trust Co., The Hanover
REGISTRATION
a
and potential
Dr.
Carl
Wiegand
under¬
few of the thousands that could be mentioned.
Most insurance
on
stocks, too,
traded over-thepublic utility com¬
panies and transcontinental pipelines. Familiar
Continued on page 25
are
counter in addition to those of
policy?
page
68
dealers and investors in cor¬
now registered with the SEC
"Securities in Registration" Section, starting on page 74.
our
undertakings in
Bank,
Bank, Mercantile Trust Company of St. Louis,
Republic National Bank of Dallas and the Whit¬
ney National Bank of New Orleans to cite a mere
re¬
Continued
NOW IN
the stocks
means
the Bank of America in Califor¬
nia, National City Bank, Chase National Bank,
Manufacturers Trust Co., Guaranty Trust Co.,
hasten to say that to discuss the dangers of the
porate securities are afforded
as
Irving Trust Co., J. P. Morgan & Co. and the First
National Bank in New York City; and the Nation¬
al Bank of Detroit, the Seattle-First National
during the
raged
people realize that this
of such banks
unsettled—
What is
corporations, the stocks of most in¬
companies and those of the majority of
14,000 banks of the country.
1
the
since
worthwhile to
seems
of
64
SECURITIES
TV. Yet the
surance
Does it represent a sound socio-economic
on
on
over-the-counter
and railroad
the
Continued
seen
Among these are the stocks and bonds of be¬
25,000 and 50,000 industrial, public utility
lying philosophy of "full employment"?
What is its
background? How did it become the law of the land?
and
be
traded
tween
undertake at the risk of tiresomeness to
lay bare
underlying assumptions of Mr. Stevenson,
it is for this reason, and only for this reason
can't
securities
enormous.
the passage of the Employment Act
vise
heard about it on
.
soundness
of
the
philosophy.
Since, in the months ahead, the "full
employment" policy may be given
its
and it
of
to the over-the-
space
counter market. Not much is
the
of
magnitude.
Newspapers devote little
may
policy of "full employment" and its underlying
philosophy of social security are as characteristic of our
time, as were laissez-iaire and free enterprise during the
19th century. A decade ago, the "full employment" phi¬
losophy was a highly controversial
and widely, "cussed and discussed"
topic in the United States, but the
arguments have largely died down
by this time: the American people
seem to
have accepted the philoso¬
phy of "full employment" as the
guiding principle of national policy,
with no questions asked regarding
decades from 1933 to 1953.
combe, and
or
can
Any investor who does not capitalize on the
opportunities that abound on the overthe-counter market does himself an injustice of
volume
The
political
during the
that
measures
as
How the over-the-counter
flections explained.
investment
carries economic evils.
party anywhere could ever have accomplished
what
Cites
presented.
market
(1) expansion of credit; (2) public works;
(3) inflation, and (4) a controlled economy, all of which
anywhere taken too seriously
any
cussed.
consecutive years
general public—if
gasping with wonderment that
Investment opportunities in over-the-counter market dis¬
A tabulation of unlisted common stocks of
University of Mississippi
be taken:
The address
party that the occasion demanded.
Biggest Stock Market
companies that have paid cash dividends from 5 to 169
business forecasts.
the opposing
disparagement of
Copy
In America
Wiegand discusses various aspects of the Employ¬
Act of 1946, and points out in the months ahead
the "full employment policy may be given its first prac¬
tical application." Traces legislative history of the Act
and the diverse attitudes toward it. Says, for political
reasons, the Eisenhower Administration cannot openly
challenge the full employment policy, but indicates diffi¬
culties of its application because of the unreliability of.
dressed
was
a
ment
position addressing an audience con¬
sisting of party leaders. The message
Cents
Dr.
The content of Mr. Stevenson's
United States.
The
By DR. CARL WIEGAND
speech last week which has quite naturally been
40
Price
Full Employment
;
And Its Dangers
We See It
As
Pat. Office
7, N. Y., Thursday, April 8, 1954
—
Underwriters,
complete picture of issues
State and
Established
IL S. Government,
State and
Municipal
ONE
ON
Securities
telephone:
MARKETS
ALL
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CALL *
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AND
MUNICIPAL
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HAnover 2-3700
¥
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York
New
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COMPANY
Common Stocks
MABON & CO.
*
THE NATIONAL CITY BANK
Sixty Years of Brokerage Service
■^Members
115
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Broadway, N. Y. 6
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it
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OP THE CITY
OF NEW YORK
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and
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Orders
Executed
On
CANADIAN
COMMON
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WIRES TO
dommofl securities
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goodbody
MEMBERS
115
Analysis
&
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NEW YORK STOCK EXCHANGE
NEW
YORK
request
40 Exchange
Place, New York 8, N.Y.
IRA HAUPT & CO.
Members
and
111
York Stock Exchange
Principal Exchanges
New
other
Broadway,
WOrth 4-6000
BROADWAY
upon
DEPARTMENT
Teletype NY 1-2270
DIRECT
Power Co.
BONDS & STOCKS
Canadian Exchanges At Regular Rates
Members N. Y. Stock Exchange
Exports—Imports—Futures
DIgby 4-2727
Banks
SECURITIES
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Bond Deportment
Exchanges
other
CANADIAN
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Raw
Markets
Dealers,
Our Customers
t.LWATSON&CO.
Inc.
Trade
Exchange
Amsterdam,
NEW YORK 5, N. Y.
SUGAR
of
N. Y. Cotton Exchange
Chicago
Bond
Net
LAMBORN & CO., Inc.
Exchange
Exchange,
NEW YORK 4, N. Y.
OF NEW YORK
Exchs.Jf
RE 2-2820
Teletype NY 1-2152
★
Cotton
Orleans Cotton
and
BANK & TRUST
Exchange
Board
Chicago
^
Bonds
Exchange
Stock
Stock
Commodity
All Corporate & Foreign Bonds
^
Members
York
American
BONDS
*
Municipal
H. Hentz & Co.
New
Municipal,
1850
1 NORTH LA SALLE ST.
CHICAGO
Teletype NY 1-702-3
WHitehall 4-8161
.Boston
N. Y. 6
Teletype NY 1-270S
Telephone:
Enterprise
1820
2
The Commercial and Financial Ch, Uuc/e...
(1530)
We
The
position and trade in
American Marietta'5'
Central
Public
A continuous forum in which, each week, a different group
in the investment and advisory
Indiana Gas*
Central
participate and give their
HUBERT
National Union Fire
There
frequently is
security,
which
new
Rights
writers.
s
Conv. Pfd. & Common
Cigar
120
to
comes
.
f
Exchange
Teletype NY 1-583
yield
6%,
attractive
an
where
American
120
dividend
of
this
stock
tribution
a
the
at
the
now
.
Hubert F. Atwater
consists of $9,-
800,000 funded debt divided into
$5,800,000 4y8% notes due Aug. 1,
1967, and $4,000,000 20-year 3%%
debentures! due
Oct.
1,
1965, fol¬
lowed by 66,600 shares of $5 cum¬
ulative preferred
stock, series of
$100 per share,
shares of common
carried
equity
the
at
Stock
Exchange
from
about
previous
indicate
proximately
The
$300
Dan River Mills
Lynchburg, Va.
the
A
to
1953
to
be
used
series
to
purchase
the
of
preferred stock at
exceeding $100 per share, and
not
ing
TWX LY 77
David
The
SUCSESS
STORY
After 24 years of hard knocks and
study, the author learned the secret
of
"beating" the market—without
taking needless risks. She made a,'
fortune in stocks, has never aver¬
aged less than 35% per year! The
most
important financial lesson in
your
life — written
in
delightful,
non-technical
style. "BUY LOWSELL HIGH." Postpaid $2.
STOCKFAX
420-C
LOS
NORTH
ANGELES
SYCAMORE,
36,
CALIF.
stock
next
business
at
of
per
date.
Consolidated
Cigar Corporation has grown con¬
siderably in the last few years,
gross sales
having increased from
approximately $25,000,000 in 1945
to
the
record
high total of $54,year.
Its factories
575,000 last
operated at
capacity, involving
overtime operations in all depart¬
ments
for
many
Sales
yfear.
were
weeks
in
the
limited by pro¬
duction.
$30,508,000 and total liabilities of
$13,914,000 of which only $4,514,showed
in
current.
were
Although sales
increase of $2,358,000
an
1953,
over
inventories
nal
HUGO STINKES
the
previous
showed only a nomi¬
Southern
Texas.
Several
plants
the
inventory
tobacco is maintained
first-out
method
of
ried
the Dec.
in
31,
leaf
Arkansas
the
value
Natural
is not yet well
probably
that
it
accounts
of
As
known to
better
investor
below)
than
for
the
offer
to
appears
value
(as
fact
much
so
shown
other com¬
panies in its field.
Despite the
relatively short period in which
it
has
had
of
one
the
many,
separate
a
however, the
in
identity,
is actually
company
oldest
the
industry—going back
gas
natural
as
early
1860.
as
following comparison of
values
offered
by Ar¬
kansas Louisiana Gas as against
the rest of the
industry, eight
investor
other
gas,distribution
and 30
companies
gas
the
of
industry have
—
been
In
his
risk.
A
in
minimiz¬
sound
financial
one
yardstick
commonly
used
for
measuring,
this factor is the degree to which
common
stock and surplus consti¬
tute
total
capitalization.
25 Broad St., New York
4, N. Y.
Phonei HA 2-9766
Tele. NY 1-3222
debt
up
the
or
one
Issued
at
the
Cigar
directly
end
of
to
1953,
one-
value
of
stockholders
Consolidated
Corporation'5%
I
and
preferred
ings.
exceedingly
well.
Common
stockholders' equity is better than
51%
as
against
an
average
of
36% for eight other gas distribu¬
tion
companies
be
return
Yamaichi
Securities Co., Ltd.
Established
Home
and
an
average
1897
Office Tokyo—70 Branches
Brokers
111
&
Investment
Bankers
Broadway,N.Y.6 COrtlandt7-5680
on
Trading Markets
rate
its
At
GENERAL
divi¬
paying
of
CREDIT, INC.
(Prospectus Available)
50
present
PANTEX MANUFACTURING
yield of 5.6%.
a
other
50
More
other
natural
CINERAMA PRODUCTIONS
gas
cent
annual
REEVES SOUNDCRAFT
rate
than
half
John R.Bdand & Co.T Inc.
paying
out
greater
a
30 Broad
the
of
companies in this field
B0 9-3242
share
Gt., Now York 4
Teletype NY 1-4487
are
of
their income.
Reserves
is
Arkansas
—
Louisiana
of the few gas
distributing
companies owning substantial re¬
one
of
natural
pany's proved
million
29
and
late.
Because
conservative
asset for the
and
fflhe^merieamRedlSTOss!
of the 1 company's
capitalization these
4
important
an
common
almost
at
distil¬
of
stockholder
conservatively
valued
com¬
amount to
barrels
constitute
reserves
—
The
gas.
reserves
billion cubic feet of gas
650
over
$4
be
can
share
per
after
adjusting for all prior ob¬
ligations. No other gas distribut¬
ing company and almost no other
in
company
30
natural
the
their
As
a
entire
the
of
pany's owned
values
shareholders.
fact
if
the
com¬
of natural
reserves
and distillate
gas
of
offer
can
resource
common
matter
group
utilities
gas
natural
same
were
valued
.#
field prices they would
actually be greater than the en¬
present
present market price
of the
stock and all of the
com¬
pany's other obligations.
addition
able
owned
Louisiana
trillion
gas
companies
contracts
nually until
owns
unproven
it
oil
is
feet
1960.
some
to
of
The
96,000
and
gas
currently
Continued
Quotation Services
pipeline
of its former
cubic
Over-the-Counter
com¬
and
companies to sell it
billion
which
other
necessary
call upon one
two
through
arrangements
from
if
Arkansas
over
producing
gas
has
consider¬
of gas
purchase
other
It
also
controls
cubic feet
panies.
36
these
to
reserves,
Gas
long-term
this
half
Japanese securities
•,
represent a payout of
less than 75% of estimated earn¬
ciated
In
;
publications
-
yield of the 30-comis only 5.1%. More¬
a
obtain
and
to the total
capital
the preferred stock.
at
over,
is, therefore, extremely
regard Arkansas Louisiana shows
times
the
group
with
important
write
since
effect
annual
share.
average
In
a
principal inventory item is equal
Members New York Stock Exchange
the
used.
selecting
or
current
utilities offer less than this while
one
natural
utility stock the investor is often
condition
to
an
of
common
phases
more
or
mar¬
over-book value of the
Most
tire
companies engaged in
our
on
them,
of
its
some
in
fairer
a
appears
to
the
1953 balance
excess
Gas.
investment community which
ing
de¬
car¬
at
This substantial
only recently
reorganization
primarily interested
$14,841,000, would have
had
a
value
of
approximately
$24,500,000 if computed at re¬
placement cost. ;V
ket
of
the
for
Dividends—Arkansas Louisiana
serves
The company has
30
within the next year or two.
gasoline
in producing
cost
of
It
fields adjacent to its pipeline sys¬
tem.
the last-
on
termination, the leaf tobacco
sheet
natural
operated
are
to
Japan
Call
this would
fast-growing area of
Louisiana, Central and
Arkansas, and Eastern
Northern
in
capital, earnings could easily rise
to 85 cents or 90 cents per share
pany
distributor.
Capitalization
increase.
Because
in,
year,
trans¬
the
serves
In
At the end of 1953, the balance
sheet showed
current
assets
of
000
Write for Circular
$100
dividend
been
With
natural gas. It
is primarily a
Shuldincr
such it
the
on
since
have
per
produc¬
the
of
entitled
particularly
and
distribution of
emerged from
preferred
be
to
1923.
offices
Opportunities
times
generally
have „been
earning
between
6
and 8%. The company has asked
for
higher rates and certainly
level of 9 this is
in
15
companies
mission,
Nov. 20 in any year shall
be applied to the
redemption of
share
tribution
rates
branch
Investment
than
is 1 earning only 5.3% of i s
invested capital whereas gas dis¬
cents
company
is
half
at
tion,
the
LD 39
than
more
dends
engaged
unexpended balance remain¬
on
companies
Gas
inte¬
less
at
earnings of 70
In sharp con¬
Gas
a nsas
an
price of 9 the
companies in the group are se'.ling in excess of 15 times earnings.
Moreover,
Arkansas
Louisiana
seems
our
stands
average price-earningsthe eignt other gas dis¬
grated natural
a
fund
share.
per
of
gas
com¬
This
Ex¬
Direct wires to
trast, the
is
The preferred
$200,000.
13 times estimated
cents
NY 1-1557
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
again
Gas
sells
Louisiana Gas
ap¬
retirement
increases
k
r
the
through 1965.
ican
change — re¬
cent price 9).
equity
an
m e r
Stock
sinking fund
of $100,000 per annum,
starting
Oct.
31, 1960, and on Oct. 31,
1967,
the
annual
appropriation
any
S
( A
share'", for
per
stock is entitled to
is
STRADER,TAYLOR & CO., Inc!
of
should
Louisiana Gas
This
year.
value
a
this
Arkansas
is
security
a
debt
1956
Life Insurance Co. of Va.
Such
provisions of
required payments of
$200,000 in 1953, $400,000 in 1954
and
1955, and $600,000 annually
the
Commonwealth Natural Gas
which
combination
a
quality:
have considerable investor appeal.
stock.
mon
Camp Manufacturing
high
—
$1,000,000
the preferred stock and
of $41.28 per share for
Bassett Furniture Industries
is
price
of the stock¬
of i953 was
end
up -
the
would
Low
.
-
total
Arkansas Louisiana Gas
at
333,000
The
Analyst, Shaskan Si Co.,
New York City
Members, New York Stock Exchange
stock
common
and
DAVID SIIULD1NER
of
$20,405,853,
American Furniture
to
>:
1953.
holders
Trading Interest In
appear
be appreciated.
of
end
not
does
Here
Louisiana
At its present
stockholders
Exchange
Tel. REctor 2-7815
Arkansas
out.
Exchange
Exchange
St., New York 6, N. Y.
obtaining as much
he can for each dol¬
investment.
of
being
natuially
is
Stock
HAnover 2-0700
New
things
investor
Rector
of
York
American Stock
in
as
ratio
as
Other
—
the
interested
The investment character
Stock
BROADWAY, NEW YORK 5
equal
100.
tycDONNELL&rO.
Members
Earnings
at
stock.
York
of
less than four times dividend
19
of
only 30% for the group
30 natural gas companies.
common
and
New
accounts
earnings
share,
per
Members New
Members
lar
$300
Steiner.Rouse&Co.
to
Consolidated
summarize,
Bought—Sold—Quoted
—
&
earnings
not
distrib-
1953,
'*>■'' 5
for
Co.
found
have
level
Gas
Shuldiner, Analyst, Shas¬
Co., New York City.
(Page 2)
1
kan
requirements in every year 1946
through 1953 (average -six times)
yields 6% and has a sinking fund
starting five years hence suffi¬
cient to retire 1,%'% of the issue
company
Since 1917
I
83 V2
high yield is required.
To
Capitaliza¬
Rights & Scrip
which
J?'.
David
or
about
at
Louisiana Securities
5%
Hubert
—
Arkansas-Louisiana
of
5%
which
tion
Specialists in
mar¬
Cigar Corporation 5% preferred
stock, traded in the Over-tneCounter market, has a book value
utedtothe
,
amounts
issue is the 1953
an
Corpo-
was
Broadway, New York 5
BArclay 7-5660
a
ef erred
p r
Member
Stock
American
created
d
e
presently
Pfd.
Atwater, Gammack & Co., NewYork City. (Page 2)
listing. It
obtainable in mod¬
erate
ulative
stock,
Corporation
1920
t
a
ration
request
New York Hanseatic
Established
Such
1 i d
o
cum
Associate
Alabama &
Corp.
Cigar
Cumulative
to
is
series of Con-
Stromberg-Carlson
»
Consolidated
be, nor
sell the securities discussed.)
ket without the benefit of under¬
market without the aid of under¬
4.30% Conv. Pfd. & Rights
on
Week's
Participants and
Their Selections
to
stock has had to find its own
ATWATER
5% Cumulative Preferred Stock
Rights
Safeway Stores
Analyses
particular security.
a
intended
not
are
writing sponsorship
Pennsylvania Power & Light
*
for favoring
offer
Consolidated Cigar Corporation
Pennsylvania Gas
Common &
F.
as an
Cammack & Co., New York City
Rights
Common &
-
they to be regarded,
are
Metal & Thermit*
-
reasons
(The articles contained in this forum
Investors Diversified Services 'A*
Common &
of experts
%
Foremost Dairies
V
This
Forum
field^from all sections of the country
Utility
Cross Company
Security I like Best
Thursday, April 8, 1954
may
for 40 Years
asso¬
up
gas
to
an¬
company
acres
land
National Quotation Bureao
of
Incorporated
Established 1913
on
engaging
i
46 Front Street
CHICAGO
on
page
80
--
New York 4, N.Y.
SAN
FRANCISCO
Chronicle
Number 5314... The Commercial and Financial
Volume 179
(1531)
The
INDEX
Supply oi and Demand for
Long-Term Investment Funds
Full Employment and Its
By RUSSELL S. HAWKINS*
concludes
the
A Foreign
of long-term investment money is
greater than available long-term investment media. Says money
rates for future will remain low, and it could very well be
that we are in a prolonged period of easier money and higher
bond prices.
Cites policy actions of the Federal Reserve
Open Market Committee, along with statements issued by
savings banks and other institutional investors regarding
availability of investment funds.
supply
AND COMPANY
Cover
FROM HERE TO
3
Elite Over-The-Counter Attractions—Ira U.
and
Mr. Hawkins discusses outlook for long-term securities
Dangers—Carl Wiegand
Hawkins
S.
—Russell
i
page
of and Demand for Long-Term Investment Funds
The Supply
C. F. Childs & Co., Inc.
Assistant Vice-President,
ETERNITY
'___
4
__
5
We'll be
6
Cobleigh
at
Investing Laboratory—A. Wilfred May
The Tax Revision Bill—Hon. Marion B. Folsom
buying obsoletes
99 Wall Street!
Concepts of Two Worlds
The Clashing Economic
6
—S. J. Rundt
Common Stocks
Investments for LikL insurance Companies
as
Woodruff
—H. Everett
LicHTfnsTEin
B. S.
Articles and News
3
99
10
Steinkraus
The Three R's for Today—Herman W.
Obsolete Securities Dept.
■
9
—
Telephone: WHitehall
10
Business for the Remainder of 1954—A. W. Zelomek
WALL STREET, NEW YORK
4-6551
1
1
I
thought perhaps it would be
intelligent to submit my conclu¬
sions at the outset and
they are—
(1) Money rates for the imme¬
1953,
low.
(2) It could
well be
that
we
are
period of
money
long-term
consid¬
11
quotations
from impor¬
I
Russell Hawkins
officers.
that savings banks,
insurance
companies
and
might add
life
were really disap¬
the March Treasury
They
had
expected
plans to purchase the
pension funds
pointed in
financing.
and
made
long-term bond which they had
hoped the Treasury would offer
and were prepared to enter gen¬
It is my con¬
judgment that a minimum
of $2V2 billion could have been
raised if the Treasury offered a
sidered
1,
to
1953
March
Also
from 3.20 to 2.56.
in
back
Article starting on
to
has
in
and
been
said
Reserve
authorities.
It seems
quite obvious to me that the Fed¬
eral Reserve System, in a political
I
pleased to submit for your
consideration the following
in¬
am
formation which
me,
direct
a
money
has, it
bearing
to
seems
the
on
'
Life Companies Investment Funds:
1948, $3.4 billion; 1953, $4.7 bil-
annual
report
Governors
of
will find the following:
Business
(Quotations
ferings (after cash retirements):
1948, $5.8 billion; 1953, $7.1 bil¬
lion; 1954 (est.), $6.0 billion.
State
and
nancing
Local
Government
1954
following directive to the Execu¬
tive Committee was approved:
in
'
Government
Debt:
1948, —$7.0 billion (excluding
government
investment ac¬
counts); 1953, $5.4 billion (after
government
investment
ac-
Hawkins at the Dean's
Day Homecoming
Conference for. New
York University Graduate School of Busi¬
ness
Administration Alumni, New York
City, March 20, 1954.
*A talk by Mr.
"The
Executive
Committee
is
directed, until otherwise directed
Federal
the
by
Committee,
to
Open
arrange
transactions for the
market account,
Market
for such
System open
either in the
open
Recommendations
71
66
8
56
Bankers
on
_____
Railroad
or
directly with the Treas-
Continued
on
page
Exchange PI., N. Y. 5
Eagle-Oil & Refining
60
8
65
Governments
Our Reporter's Report
Public Utility Securities
Our Reporter
'
40
Teletype NY 1-1825 & NY 1-1828
24
13
General Beverages, Inc.
-
_
1
58
Securities
The Security I
74
78
4
16 T
2 >•
Washington and You
80
Securities Now in
Prospective
Registration
Security Offerings
Corner
and You—By Wallace Streete
Salesman's
Security
The Market
.
.
_,
.
Like Best
The State of Trade and Industry
*See "A Record of
58
Market"
page
on
Oil Inc.
Reeves-Ely Lab.- Inc., Pfd.
Tracertab Inc.
5
.
market
Request
MACKIE, Inc.
HA 2-0270
8
—
——
Banks and
News About
&.
8
Notes
NSTA
March 4-5, 1953
actions in System Accounts." The
billion;
Securities
Funds
Mutual
1953.)
"(1) Authority to Effect Trans¬
on
Singer, Bean
80
*
Man's Bookshelf
Einzig—"Relaxation of British Exchange Control"
From Washington Ahead of the News—Carlisle Bargeron
Indications of Current Business Activity.--
Report of the Board of Governors
of the Federal Reserve System for
1948, $7.0 bil¬
(gross):
lion;
1953, $5.6
est.), $6.0 billion.
Increase
Fi¬
Cover
67,
;———+
Stocks——
Dealer-Broker Investment
Annual
the
from
*Prospectus
62
—
Coming Events in Investment Field
COMMITTEE
lion; 1954 (est.), $1.4 billion.
Public and Private Corporate Of¬
and Insurance
Canadian
OF POLICY ACTIONS
FEDERAL OPEN MARKET
1948, $0.6 billion; 1953, $1.3 bil¬
r
61
__—
(Editorial)
See It
As We
Bank
RECORD
American Shares
Regular Features
Fed¬
eral Reserve System for 1953 you
Pension Trust Investment Funds:
Royal Dutch
59-
of Provision
(Letter to Editor)-—
(Boxed)--.
the
of
the
6—69
57
Redemption
Well Said!
Magnolia Park, Inc.*
Activity
Increasing in Mexico
Reserve-SEC Survey
"
lion; 1954 (est.), $5.1 billion.
.
present levels.
of
Lithium Corp.
„
57.
—
Capital Expenditures to Remain High, According to Federal
seem
the
Treasury "H" Bonds
Richard Spitz Condemns Tax Cuts in Absence
for Debt
quite evident that
anxious to keep the cost
of the debt from rising too much
In
American Tidelands*
30
_____
_______
Harvey Schwamm Reports Business
are
Board
market.
Jr
IBA to Promote Sales of U. S.
■
from
27
Contends National Economy Can Correct Itself 31>
Curtailment of Treasury's Power to
Sell Bonds Directly to Reserve Banks
44
policy of econ¬
a
1954
Economists' Group Urges
and with the interest cost on
the debt today at $6,900,000,000 it
they
NY 1-3370
Market Cited by United
M. S. Rukeyser
omy
would
ment media.
Teletype
Telephone
Dlgby 4-1680
—
Business Service
-
for
Street, New York 5
51.)
page
Outlook
Business
.certainly will not deliber¬
upset the apple-cart.
The
Treasury authorities are certainly
record
☆
15 Broad
(Table I, page 28)
consecutive cash divi¬
to
(Table II,
Lessons of 35 Years in the Stock
ately
on
years
respect
Leo Cherne Sees No Reason for Alarm Over
the
about
Open
year,
and
for 5 to 10
with
Manager
Trading Dept.
in
Treasury
their
field
investment
conclusions coupled
second tabulation
a
dend payers
Market
Committee and the policy of the
with my own
observations, indicate to me very
clearly that the supply of longterm investment money is greater
than available long-term invest¬
the
Unlisted
a
consecutive cash dividends for .10 to 169 years
1,
.
Much
and includes
showing names of companies whose securities are
exclusively in the "counter" market which have paid
traded
yields for a
similar nine-month period of time.Federal
☆
JOHN F. REILLY,
"The Biggest Stock Market in
page
tabulation
in
decline
the Cover
America" deals with the Over-the-Counter Market
1954. We must go.
June 1, 1952 to find a
sharper
BURNHAM AND COMPANY
Members New York Stock Exchange
Bond
March
on
33
—
"THE BIGGEST STOCK MARKET IN AMERICA"
decrease
a
Sold
—
22
.___
Javits
1,
Moody's AAA Cor¬
Yield Index from
3.39 in June of last year to 2.93
yields
porate
long-term bond.
I have talked with authorities
—Charles C. Freed
Recession and American Business—Rep. Jacob K.
Bought
22
in 1954—Roger W. Babson
Automobile Retailing Faces Era of Sales Pressure
1954, the decrease in yields on
government securities (not due or
callable in less than
12 years)
amounted to 64 basis points or
subscriptions.
erous
June
20
Policy—Ralph A. Tudor
Most Important People
the
on
18
—_
The New Federal Electric Power
points from June 1 of last year.
From
tant investment
3y4S
Treasury
MONMOUTH PARKIOCKEY
16
—Arthur O. Dietz
AAA cor-
1st of March of this year were up
direct
eration
14
,_
Bernstein-,
Consumer Credit: A Vital Prop to Nation's Economy
tremen¬
a
on
-i
__
Bull Market in Long Bonds—Peter J.
and government obliga¬
tions in the past nine months. The
I submit for
your
—Rep. Clifton Young
porates
prices.
System Destroys a Right to Private Property
Our Currency
in yields
Stock and Bonds
14
—Philip M. McKenna
Mortgages:
witnessed
have
We
dous drop
bond
13
—Michael Pescatello
lion; 1954 (est.), $8.4 billion.
and
higher
MAGNOLIA PARK RACING
12
Evils of Irredeemable Currency May Overwhelm Us
1948, $7.3 billion; 1953, $9.6 bil¬
easy
12
--
Common Stocks for Trust and Pension Funds
•
Increase in Real Estate
in
prolonged
a
$2.4
;
Oborne
Ross
Objectives of Securities Regulations—Ralph H. Demmler
•
1948,
$3.0
billion;
billion; 1954 (est.),
$3.0 billion.
very
—J.
By
Held
Activity for U. S. and Canadian Bond Market
A Record of
Investment
Government
Accounts:
remain
will
S.
U.
diate future
Securities
in
Increase
11
1954 Outlook for the Oil Industry—Frank M. Porter____
The
counts); 1954 (est.), $3.0 billion
(after government investment
accounts).
,
,
I
U. S. Thermo Control Co.,
Activity for U. S. and Canadian Bond
12.
Common
—
Published Twice Weekly
For many years we
have
specialized in
PREFERRED STOCKS
l
ary
WILLIAM B. DANA COMPANY, Publishers
Place,
REctor
Spencer Trask & Co.
n
WILLIAM
Members New York Stock Exchange
BROAD ST., NEW YORK 4, N. Y.
New
York
siftrfrt
FdJtnr Xr
SEIBERT,
25
Albany
•
'
Manchester, N. H.
Boston
•
TELETYPE N. Y. 1-5
•
Chicago
•
Nashville
•
Glens Falls
•
Schenectady
•
Worcester
Thursday,
April
8,
25,
1942,
Subscriptions
Publisher
t VT
President
.
Olher
Offices:
135
South
La
Salle
post
office
at New
in
of
Dominion
United
Canada,
INCORPORATED
States,
U.
S.
$51.00
per
Other Publication
St.,
(Telephone STate 2-0613);
the
rate
account of
the fluctuations In
exchange, remittances for for-
of
eign subscriptions and advertisements must
be muoo in New York funds.
>
39
BROADWAY, NEW YORK 8
WHitehall
3-3960
year.
Bank and Quotation Record — Monthly,
$33.00 per year. (Foreign postage extra.)
Note—On
ill" V. FRANKEL & CO.
Rates
other Countries, $55.00 per year.
1954
(general news and adand every Monday (complete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
issue)
Chicago 3, 111.
the
Possessions, Territories and Members of
Pan-American Union. $48.00 per year; in
Every Thursday
vertising
at
York, N. Y., under the Act of March 8, 1879.
Subscription
I
TELEPHONE HAnover 2-4300
Eng-
„
N. ,Y.
to 9576
2-9570
DANA
7,
C.,
Reentered as second-class matter Febru¬
Reg. U. S. Patent Office
Park
E.
C°Py"ght
FINANCIAL CHRONICLE
25
Gardens, London,
Drapers'
la"d- 0/0
COMMERCIAL and
The
Teletype NY 1-4040 & 4041
Direct Wire to
PLEDGER
& COMPANY INC*
LOS ANGELES
4
(1532)
The Commercial and Financial
Chronicle...
Elite Ovez-the-Conitter Attractions
Predicts Vest-Pocket
Securities Salesman's Corner
By IRA U. COBLEIGH
j
Enterprise Economist
.
This
column
joyfully
today
quoted
joins the main motif of this edi¬
tion, and is delighted to carry a
obviously
to
junior
of
A Sales and
Quite
can't talk about 'em
we
over-the-
ticular
counter
Nothing
here
will
offered,
the
how¬
dim
to
ever,
be
the
luster
our
d i
t i
s
of
n
-
dilute
o
so
f
let's
ever
are
be
over-the-counter market
Instead
municipal bonds; as the trading
for the major share of all
with
that.
to you that
Did
government obligations; as
the
for share quotation of most
of national and international emi¬
projected their shares into
and market
leadership on the New York Stock
Exchange.
*
nence,
trading' prominence
out
go
Among
it
Connecticut General Life and U.S.
Company
be had at
Travelers In¬
can
around $300 a copy,
sells at
$1,000, and there's
an elite open end investment com¬
pany, Graham-Newman Corpora¬
tion that's quoted at $1,500. And
if you really want to go all out for
market altitude, you can pay $50,000 a share for Los Angeles Turf
Club common. That, I believe, is
the "Top of the Mark," pricewise,
surance
for
over-the-counter
creatures.
corporate
Altogether, well
$750,000
Educational High School
District No. 2
number
a
cover
10
envelope), attractively
page at a cost of 10 cents
County, Nevada;
is
gravure,
luxuriously and
ciously rewarded.
ers
to
in the line below is
operates but
nificent
and
not
the
in itself
years is
a
sociation
there
tively
sales
a
as
a
Sealed Bids will be received until
14,
1954
for the following
described bonds:
Block
No.
1,
$100,000 maturing
August 15, 1967, $100,000 matur¬
ing 1968, $100,000 maturing 1969,
and $100,000 maturing 1970.
Block
No.
2,
$100,000 maturing
August 15, 1971, $100,000 matur¬
ing 1972, and $150,000 maturing
1973.
Officially estimated 1954 assessed
valuation $150,000,000. Write Lau¬
ren
W. Gibbs, Fiscal
Agent, 401
Zions Savings Bank Building, Salt
Lake
City, Utah, for Notice of
Sale and brochure.
George
57th
use
its
Discusses
Street
own
Biggest Stock Market
in America"
have
been
Telephone
the
distant,"
working
There
capital
share
(at
taxes
for 1954.
boost
Without cost
pamphlet
your
or
"If this
that
sales
i
*.•,
I \
No market rocket this—
of
plain
a
rock,
diamond
that is.
Bausch and Lomb
Optical Com¬
pany is a lens leader turning out
distinguished line
instruments, lens
of
and
scientific
frames for
glasses — altogether almost
3,000
products.
It was
a
large scale
wartime producer of fire
controls,
gunsights and periscopes, devot'ng, at one time, over 70% of its
-
This
Postwar
pamphlet
as
"sales
a
could
mailed
tickler"
ments indicate.
As
to
be
and
used
in
have
rities, because of their
lack of
high,
to
man,
firm's
the pamphlet.
a
Something
directions
a
as
come
develop¬
long
way
in this great market.
secu¬
it functions
As
a
un¬
over
carefully.
It
is
something I wish
of
one
the
best
In 1952.
mon
moving
1950 to $52 million
Net per share
on
60c
indicated
a
share.
around
the 603,821
shares—ample
current
was
coverage
for
rate
market
orice of 12 compares with
high of 34 Vz.
com¬
dividend
Present
sent with the
a
1946
the
on
prospect
pamphlet.
letter, is well known to
The
all
reason
more
for
a
In
the
the
upon
educate
to
last
and
manner
This pamphlet
and
beat
success
formal note could be
covering note,
open
It
or
short
takes your
you
follow up your
can
down
dogmatic and prejudiced sales resistance
good unlisted securities, and it can
help you as a dealer in
securities put your best foot
forward.
TO KEEP WALKING.
recording
for
wide variety of in¬
measuring
$
and/or
humidity,
ad
temperature and the velocity and
of
pressure,
levels of fluid. From
Continued
a
main
on
placed in
AFTER THAT YOU HAVE
of
a
over
47
pays
1,000
most
which
upon
McCarthy
the
microfilming
including
some
to advertise, if you do it right!
from
...
three-column full page
foreign
v.
ac¬
spectacular
loom
horizon,"/Mr.
the
con¬
combination
with
electronic
superhuman ef¬
of
speed.
this
connection
tabulation, the
medium of the
lating system
countries.
It
paper
present-day tabu¬
will
also
be
seded by coded
for
super¬
microfilming reelsimplementing the speed of
almost
incredible
creations
the electronic
age, now on thethreshold of general
usage."
public
of the
maintained
McCarthy's
certificates,
is
not
generally
many ways the
individual
on
are
microfilm,
talk
revealed.
bank
partment
rec¬
already
Mr.
Birth
statements,
de¬
store
bills, milk bills
drug store
prescriptions, laundry
bills, social security
records, in¬
come tax
returns, insurance pol¬
line
a
replies,
the
informa¬
making them readily
tinued, "involve
census
titles to
on
as
for reference.
advances
icies,
*
Miami paper by
Murray L. Smith of Carlson & Co.
Birmingham, Ala. Mr. C. informs me that this ad
produced
plant
page
*
Several weeks
ago I corpmented
and
predicted
volumes
"Probably the
The
obtaining customers depends
doors for your sales
people, it
thermometers,
struments
tion and
aware
diligence with which
can
strument Companies. This
organ¬
ization is the largest maker
of
a
electronics
was
there
Is
to suppose that
just
the mechanical
tabulating sys¬
tems of
today will be superseded
is too valuable to waste.
in
&
Electronics
ords of the
analysis,
that,
produce
every reason
Conclusions
a
medico, chances are you're pay¬
ing indirect tribute to Taylor In¬
producer of
unreasonable
as
of the ordinary, run-of-the-mill
category and dig¬
Otherwise many good
mailings have hit the waste basket
one
re¬
microfilmer.','
vast
"In
informative
direct mail specialists.
without being read—and this
can
a
logical step in the business of
cessible
these
leads.
important
of
should
by electronic
a
camera
of
get your blood pressure taken
by
an
next
nifies it.
above $35 per share.
and
"r-
mailing out
Book value today is
The next time you look out
your
window at the
thermometer, or
seem
ficiency and
come across.
list
it
'
you would
Regards
For those
from
up
at all of the
form of micro¬
is in the sense
a
huge bulk
machines
pieces of its kind I have yet
divi¬
as
vest-pocket
Combining
microfilming
sales¬
George:
read
self-coir—
Microfilming Combined With
filing
qnlisted
way
to
are in this cate¬
short note to them and
enclose it with
like this:
was
paid. Recovery in the
past three years has been
signifi¬
gross
a
not
of
Dear
imaged of
on a
look
can
future
regular
I would select those clients whom I
know
gory, and I would write
New
mountain,
skyscraper, or a huge ocear*
liner down to 35mm
film, then it
the
knowledge of the
and the opportunities
available
in
a
informative piece it would
go
enlighten many people who are
prejudiced against
carried
common
one
filming, which
that
paid
in the months to
other
possibil¬
ago
projecting
photography
duce the
an
The enclosed
pamphlet is
readjustments
net down from the 1944
til 1950, when no
mailed
a
tele¬
screen.
the
also
in
the
to recall to
you
weeks
for
tained
"If
me a
copy of
"Biggest Stock Market in Amer¬
other prospects
into
microfilmed recipes
pocket-size
«.
enlargement
built
seems a remote
does
.
far
said,
a
.t
Address
iffort to such items.
of
"
t
_
Name
customers and
case.
too
kitchen-of-tomorrow ex¬
displayed an electric range
containing its own, built-frk film
copy
containing data on unlisted stocks that
consecutive cash dividends from 5 to 169
years.
V
be
hibit
ica"
is
for
few
a
York
obligation please mail
the
on
cigarette
McCarthy
ity, I should like
below
Co.,
Street, Anytown, U. S. A.
12-31-53).
Tiffanv
reader
reader
Main
a
cannot
Mr.
form
avail¬
are
should
more
now
net
132,451 capital shares
outstanding (sole capitalization)
quoted today at $25—an indicated
4% yield. The reduction in excise
microfilmer
telephone book:
phone instrument.
Blank &
steady
common
a
time
film
mail coupon
free
common
vest-pocket
film
opportunities
or
for your
with but slight difference in
total
for 1952 and 1953.
Net for 1953
position of
investment
may
"when individual
telephone direct¬
ories may be distributed
in micro¬
manu¬
quite
slightly terrific—$52
valuable
in
someday bring
microfilm
a
"The
able, why informed investors look to this market for un¬
usual values, and how the
individual investor can benefit.
facturing plant for silverware in
Newark, N. J.
Sales
a
and
Cash Dividends from
5 to 169 years
group
of jewelers to distribute
Tiffany sterling in the hinterland.
The company has
IVicCarttty
J-.
into
newspaper advertisement
Send for your free
copy of this pamphlet giving data on
unlisted stocks that have
paid consecutive
gra¬
years
microfilming
about the size of
"The
25
advances
along the following lines is suggested:
Avenue, New York. It
has, however, appointed a select
$2.20 for 1953
April
past
technique
Copy for
o
predicted that
standpoint the pamphlet couid be used effec¬
lead producer.
a
t
microfilming
during the
list that should be of interest to
every informed
a
con¬
tributions
are no doubt many
1'.
From
trade, Tiffany
single store, a mag¬
at
for
work and
slightest understanding of the facts presented
As carat cater¬
monolith
by
National
Microfilm As¬
ordered.
are
Suggestion
investor.
Fifth
$37 million in
Obligation Bonds
given him
provided
space
after
award
the
imprinted in the
your customers and prospects
the carriage
cant, with
General
address
an
piece.
a
dend
Clark
of Recordak
Corpo¬
ration, subsidiary of Eastman Ko¬
dak
Company, in an acceptance
in
-
over
are
two-color
"Chronicle"
in this excellent article. In
addition, the compilation of unlisted
securities that have paid consecutive cash
dividends from 5 to 169
stationery.
The
blue
blooded
thumb, rubbed over a Tiffany en-
a
25,000 corporate issues alone
George L. McCarthy, Chairman
the
Well,
plenty of it
Trust
in
who have
like range you can get was
$24,906; and the balance after
over the counter. Doz¬
dividends of $1.00 per
share, was
ens and
dozens of penny mining
a deficit of
$107,545. This is not
and exploration shares are swap¬
alarming, however, as the balance
ped here in sheafs; companies like sheet
you
being made available by the
A
Tiffany
on
available
are
be
can
electronics.
giving quantity discounts, "Compliments of" and the
their invitations and
wedding an¬
leading
springboard
companies, now
name
with
of the Board
(to fit into
a
Says microfilming
combined
'
and in the interim has
nouncements
opportunities
could
you
form.
of the most outstanding
some
~
directories
his pioneer
And those who seek the hallmarks
of social
prestige like to have
arena
the
is
telephone
be distributed in microfilm
may
clearly and concisely to inform inves¬
far distant when in-
not
dividual
of this week's "Chronicle" there
for this purpose when 100
copies or more
built up the top reputation for
quality in jewelry and silverware,
in America, if not in the world;
mart
un¬
of
dealer's
balance sheet sub¬
Tiffany stockholder?
a
years ago,
been, however, under appreciated.
As the native habitat of nearly all
should also be noted that the
article
pamphlet form
Tiffany & Co. started off its ele¬
gant,
gem-studded,
career
117
has
financial institu¬
tions, bank and insurance com¬
panies; and as the first place
where the equity of a company is
quoted when its ownership
spreads from a few, to a few hun¬
dred, the over-the-counter market
provides a broad and vital service
in
our
fabulous
economy.
It
written
investment
and
presented with
you can.
o r
riving their statistical fodder from
quotations
of
listed
securities.
If
begin
occur
the Dow Jones
other eminent market meters, de¬
is
This
'
averages
market
or
been
Tiffany has always been asso¬
ciated with a top quality
rating;
impor¬
tance and sig¬
nificance
name
has
companies
investors, in
stance.
to
the
listed
represent
to
page
Over-the-Counter Market.
Many of these com¬
panies offer a rather unique ap¬
peal either by virtue of products,
Exchanges,'
from which many
they
The
outline form.
trade
or
our
endeavor.
presented
coast-to-coast;
The
of
values
rarely
Stock
guished
field
time
Advertising Opportunity
cover
tors, and the public in general, that
equities of these corporations are
selected, not because they are the
most heavily dealt in, but because
mar¬
an
ica."
It
the
on
article entitled "The Biggest Stock Market in Amer¬
appears
today, but we did hit up
on
the idea of outlining a few
companies that excel in their par¬
tne
ket.
Ira U. Cobleigh
Starting
all here
in the general parade doing
spear
over-the-counter.
George L McCarthy, President
Recordak Corporation,
says
By JOHN BUTTON
A swift survey of certain companies, leaders in their
fields,
whose shares have their values reflected in the unlisted market.
of
Thursday, April 8, 1954
are
records, library
cards,
property, railway
tickets,
among
and
the
the
many
and air¬
daily
paper
items
now
involved with
microfilm at some
stages * of * their
production
or
preservation.
Volume 179
Number 5314..
*
'
5*.If
*"t>r<*•**•
The Commercial and Financial Chronicle:
V
.■*'<
* *
V?r
""
(1533)
* '
'
Steel
The
A F
Production
Electric
ing encouraged a buyers'
against the paying of bills.
oreign Investing Laboratory
Output
Retail
Food
Auto
and
Trade
ernment.
Beirut, Mr. May notes the difficulty of securing foreign
capital in the face of convertibility and other
attending favorable fiscal factors, including tax privileges.
Concludes other deep-rooted elements, as the
political external
and
internal, will generally control investing decisions
throughout the world.
Industry
Production
Business Failures
J
Steadiness characterized total industrial output for the
nationIndica¬
tions pointed to an abatement of the recent down-turn in steel
ingot production. Output was only fractionally below the pre¬
ceding week but continued to be 27% under the comparable 1953
at-large in the period ended on Wednesday of last week.
claims
Initial
the
from
1%
for
creating
unemployment compensation again dipped
however, continued to be markedly above the similar 1953 level
United
of the labor force.
Census
States
East-West
Bureau
reports
unemployment
gateway
inched up by 54,000
in the month ended March 15. This was the
smallest gain in six months, it notes. But the gain contrasted with
a decline of
114,000 in jobless rolls during the like 1953 period.
Civilian employment rose, too, during the month—by 45,000 to a
total of 60,100,000.
The 1953 increase for the period was 396,000.
The
steel
shot in the
industry shouldn't expect any big
arm
second
Steel
industry earnings were 38%
higher in 1953 than they
in
1952, according to "The Iron Age" financial analysis of
the industry.
Although the industry shattered virtually / every
sales and production record in the book during 1953, net profit
was
*
second best to 1950.
Net income in
1953
was more
than 4% below the 1950 record,
despite the fact that sales were about a third greater. Three out of
four reporting companies had better earnings in 1950, the financial
analysis reveals.
controls
included price
in mid-March), heavy taxes, higher labor costs
and more competitive conditions beginning in fourth quarter. The
tax burden was moderated somewhat by accelerated amortization
on emergency facilities.
(lifted
Competition forced steel companies to absorb freight, trim
charges and eliminate premium prices where they existed. A
major producer estimates that freight absorption alone cost him
an average of 72c per ton in fourth quarter.
If this were typical
of the entire industry it would amount to about $13 million on the
extra
basis of fourth quarter
shipments,
or
well
$50 million
over
on an
annual basis, concludes "The Iron Age."
Although the market picture has been disappointing so far
in 1954, the industry according to "The Iron Age," still has these
bright spots to contemplate: expiration of the excess profits tax;
consideration at Washington of a change in the income tax law to
,
base depreciation allowances on
replacement rather than original
cost; the fight to eliminate taxation of dividends (double taxation)
looks more encouraging, and expectations that business may take
a tarn for the better during the second quarter.
-
The
United
automotive
States
113;200 passenger
cars
industry built
and 22,500 trucks
a
average
an
week during the first
and 284,360 commercial vehicles streamed off
Compared to the first quarter of 1953, car output
is 6% less and trucks are down by more than 17%.
cars
assembly lines.
Vehicle
but
was
production last week totaled 135,407, dipping 2%,
still only about 6% under the 21-week high attained
during March
"Ward's"
15-20.
all Chrysler Corp. divisions except
Dodge worked five days the past week, but Plymouth substained
a 7%
drop from the preceding week. Mercury put in only four
days at Los Angeles and St. Louis to give Ford's total volume
a
downward nudge.
Chevrolet also dipped slightly, but Oldsreports
that
Continued
on
page
72
applications for capital under
the American MSA Office of Small
of
Government
enjoyed
free
a
Wilfred
A.
May
controls
over
remittances of
earnings and repatriation of capital.
There are absolutely no restrictions
the
on
investment
of
foreign
capital. It is subject to
the same regulations as those gov-
pleased to
that
announce
ALEXANDER
D.
Practically no foreign capital has
in, excepting via the Iraq
Petroleum Co. (owned by U. S.,
bonds.
sachusetts
First Boston Corp., Blyth & Co.,
*nc-> Tripp & Co., Inc.; the consuiting engineers, Howard, Needles> Tammen & Bergendoff; the
follows:
acted.
On
ago
im-
were
portant tax concessions
en-
favor-the-big philos-
a
ophy, they exempt from Lebanese
taxes
income
for
six
years
is
ness
different
from
existing
providing its invested
and
ones,
cerned,
with
individuals
be
to
appear
con-
mainly
& Ca and Coverdale & Colpitts;
as
bond counsel Mitchell & Pershing;
(l) Fear of
disturbance.
external
ThomnMn^BarUett^Brown
pson' Bartlett & Brown.
political
y' i
(2) The job of training
a
body
Seidman & Seidman
skilled industrial workers,
com-
panies whose object in doing busi-
.
.
^ ^ ST-H
Cj°jSym^s
1Par^^' Pariially mitigated by the
Arab Economic Agreement lower-
Admit Partners
Seidman
&
Seidman,
one
million Leb-
anese
^
Although the law nominally
applicable to Lebanese as well
is
as
foreign corporations, its frank aim
is to encourage foreign investment.
In fact, the original impetus for
the
bill
emanated
from
local
a
companies
some
convert
official rate (2.21)
ing rate (3.26).
(5)
The
from the
at the
the go-
ids>
^
ancj
troit
p
have
m
^
^
Johnson
become
spilling
political to the eco;
: r
yfT
1
LebanCSe 3nd f°r~ spawningcompanies here, by
f°reign
bureaucracy. (90%
And
Factors
the
DETROIT, Mich.
onerates
chronkally
out
can
on
exceeding
estimates,
with-
expense
inflation, and without Amenaid excepting by way of Point
Under
these
bireaucratic
the
come
]ar
r
and
'5
..
conditions
onslaughts
The
foreign
trade
account
trade,
emigres'
and
been
added
furnish
(Special
to The
Financial
non
v.es4er h«s
added to the staff
of Don W. Miller & Co., Penobscot
The Be.-
,
Thomson & McKinnon Add
(Special
.
cession since pre-war, is pulling
to the financial chronicle)
GASTONIA, N. C.
Claude E.
out because of troubles with the
Deal has joined the staff of-Thom-
government, the latter
son
even
hav-
& McKinnon.
John McFetrick is
pleased to
announce
the
countries
formation of
has
been heralded in
Turkey, have elimi¬
restrictions on capital with¬
of
McFETRICK & CO.
Stock
quite exceptional.
would
Brokers
a
mecca
on
flow
an
that
constitute
this
Leba¬
for the foreign capi¬
country
been
levels.
When
on
Eric
Exchange.
Exchange.
The Montreal
so
predicted
Stock
The Canadian Stock
\
strongly
equity basis. In fact
has
authoritative
Members:
suppose
would
tal which this
such
A,,
'
132
WASHINGTON, D. C.
GRAND RAPIDS. MICH.
MEMPHIS.
DETROIT. MICH.
EVANSVILLE, IND.
ROCKFORD. ILL.
HIGH POINT, N. C.
GARDNER. MASS.
BRADFORD. PA.
FITCHBURG, MASS.
WARREN.
Johnston,
as
President
Eisenhower"
"representative
of
JAMESTOWN, N.Y.
LOS ANGELES. CALIF.
TENN.^
PA.
4
„
arrived
•
V
Telephone:
'•
here
a
year ago
to
survey
the
pos¬
sibilities for private American in¬
vestment
capital
and
the
oppor-
\ '
:i
.St.' James Street West, Montreal
*
*
\
CHICAGO. ILL.
Chronicle)
remittances.
other
from
as
case
the
DETROIT, Mich.—David F. Syl-!
indication of the
some
to
Penobscot
JAnoDSCOt
'
Hence, with all these attending
comparative quantitative advan¬
tages, this country's experience
desires
NEWYORKi N.Y^,
Edward F.
—
Bache&'~CcT~
Building,
-
,
"
.
of
Joins Don Miller Staff
(J) Overhanging demagoguery
is
balanced, with a sizable visible
deficit being more than made up
by1 revenues from their foreign
investments, tourist trade, gold
be-
compefitive.
against foreign capital
Four.
has
-
of
Building.
a Building
a
\
with little military
Thomas
staff
Political employees, and 60% of
JuhInSJL® the national budget is thus dewith
income
nation
budget,
De-
Now With Bache & Co.
the City of Beirut's payroll is for
Favorable
of
^
members
of
Fiscal
^
anti-foreign,
feeling,
on
eign^capital
^
their firm.
general
anti-colonialism
over
versus
group seeking to establish a West- nomic.
inghouse appliance plant in Bei(6) intermittent extra levies
situation
Certified Public Accountants
certified
inS duties on industrial products public accountants, announce that
pounds ($300,000) and whose Produced in Arab countries.
Alexander Loy of New York, L.
weekly payroll is 100,000 pounds.
(4) Past practice on making William" Seidman ^bf Grand* RajTcapital is at least
firm
SEIDMAN & SEIDMAN
Mas-
revenue
Pendent surveys, DeLeuw, Cather
the
ters of credit abroad.
One
$240,000,000
Turnpike
The date of the offering was
selected, Commissioner Callahan
French, British, and Gulbenkian said, following consultation with
participation), Aramco., and a the managers of the underwriting
negligible amount put in by West- group: F. S. Moseley & Co., The
discussion
are
our
Turnpike
1954, has been set for the sale of
ing tax and budgetary factors here
(DETROIT)
have become members of
Massachusetts
come
bearing in mind that the surround¬
M. JOHNSON
the
Authority, on April 7 announced
that the date of Tuesday, May 4,
approximately
drawal; from countries like
Greece, where withdrawals with
a
ceiling are now permitted—
-I
May 4
Callahan, Chairman
But foreign investors persist in
overlooking the favorable facts
country. There is no
restriction on the opening of let-
nated
(GRAND RAPIDS)
of
F.
traffic engineers, who made inde-
of
expected
SEIDMAN
William
out
the
(NEW YORK)
L. WILLIAM
Reach Market on
inghouse who have come in on a
erning domestic investment.
In- know-how
basis
in
connection
terest, profits, and dividends as with assembling.
well as unlimited proportions of
The main reasons for such foreprincipal, can be easily transferred bearance, according to on-the-spot
which,
LOY
Huge Massachusetts
Turnpike Issue to
a
Mecca Unappreciated
ex-
change
market, with
no
maximum potentialities in the way
of investment flow that can
be
are
these
ment flow here certainly warrants
tbe conclusion that factors other
th?n. convertibility and legislated
Privileges will be important, and
Perhaps decisive,
large scale the
proposing
years
can
We
on a
is
East,
balanced
Up to and including March 31, it notes, approximately 1,424,000 passenger
20
$100
Middle million TVA hydroelectric
system
has for via the Litani River.
the
of
three months of 1954, states "Ward's Automotive Reports."
on
are
existing
optimistically to a select
of 12 leading Lebanese bus-
Beirut, the Business. And
Moreover, two months
Factors that tended to limit earnings in 1953
city
Tangiers
quarter
Motors, have been doing some extra buying as a hedge against a
possible steel strike. If the steel labor contract is negotiated peace¬
fully, this protective inventory could cause auto firms to cut buy¬
ing deeper than they usually do during the summer, it declares.
were
of
from auto buying, states "The Iron Age," national
metalworking weekly, this week, since General Motors and Ford
have actually been increasing steel inventories while distancing
the automotive
field in production.
Both, especially General
most
group
whether
of
the
part
foreign
justified or not, their
control over the invest-
investors
inessmen, bankers, and the Prime
flow of West- Minister, predicting that Ameriern
invest- can business capital would arrive
ment capital,
shortly. Accordingly strong hopes
The colorful were raised,
entailing the filing of
week and the total number of jobless was
below the week-ago level, it was reported.
Unemployment,
The
an
crux
international
preceding
and constituted 6%
Irrespective
objections
BEIRUT, LEBANON—The tiny tunity for developing chemicals
country of Lebanon offers and fertilizers, noting/favorable
the most highly significant con- labor and
shipping costs, he talked
elusions about the possibilities of
The
rather the basic national attitude.
historic
level.
General distrust.
is not the law—which is only im¬
portant over the short-t^rm—but
investment
Index
Price
(9)
In
Commodity Price Index
strike
(8) Fear of local change of gov¬
By A. WILFRED MAY
Carloadings
State of Trade
5
PLateau 8525.
The Commercial and Financial
6
Chronicle.... Thursday, April 8, 1954
(1534)
T
.
*
,
The Tax Revision Bill
Now let
Under Secretary of the Treasury
wide
on
revision bill
represents many months of in¬
tensive work by the combined tax
The
875-page tax
and the Treasu r y
Depart¬
ment, by the
staffs of Congress
of
members
the
Ways and
i 11
It
exert
the
a
Inter-
Revenue
1
Code
the
—
complete
overhaul since
Income
the
depend
for
Tax was first
adopted.
Its
to remove inequities;
restraints on economic
purposes are
reduce
to
growth and the creation of jobs;
to close loopholes; and to simplify
the tax laws as far as possible.
This bill was not designed as a
tax reduction measure but it is a
growth.
World
Since
been
.
will
eco¬
War
II, there has
Many
provisions of the bill have
been recommended by Congres¬
sional committees in the past and
organizations. For in¬
House Special Com¬
many
mittee
the
Postwar Economic Pol¬
on
long overdue tax reform. Many of icy and Planning (the Colmer
which consisted of
its provisions, however, will give, Committee),
relief to
millions of
individual 10 Democrats and eight Repub¬
taxpayers. The immediate enact-5 licans, made a number of recom¬
ment will be particularly helpful mendations in 11944 and 1946 on
at this time when we need
to en¬
private spending by busi¬
to create jobs, as
courage
concerns
ness
well
Since
by
asked
first
were
we
1953 State
to review
the tax system with a view to
making recommendations to Con¬
the
of
President,
his
in
Union
the
Message,
policy which would facilitate
the conversion from
country
have
by
a
whole.
We have
considerably by the
tax system which
as
aided
been
the
of
studies
been
made
Congressional
organizatipns.
and
Treasury
staffs, and by
recent years
in
many
the creation
which
some
time, all citizens, other than
ence
of
below
would
have
minimum
a
given
some
burden.
share
They
consideration
that
be
elimination of the
taxation of divi¬
the
to
present
tax
for
subsist¬
level, should bear
the income
allowances
this
that
realized
25%,
by
The
if
wishes
it
meat-axe
ap¬
-
there has
time
that
Since
tice.1
double
dend
income, and that this tax re¬
would not only correct an
inequity in the present tax struc¬
ture, but would also provide an
important stimulus to risk capital.
form
This
structures and
precepts, ac¬
cording to the
Organization
for European
Economic
prac¬
In
recent
have
the
eralized
the
of
criticism
widespread
structure.
countries
is
probably
the
tax
of
treatment
depre¬
with the view to stimu¬
lating plant expansion and mod¬
ernization. The changes were ef¬
1
fective.
■
,
7
7
revision bill would
The
latitude
more
permit
selection
in
of,
methods
of
depreciation
and
permit larger depreciation
would
charges during the
of
Under
use.
years
the
—
declining
two-thirds
balance—about
of
pearlier
rate
the
of
buildings, machinery
equipment, including farm
new
is depreciated in the
equipment,
half
first
of
This
life.
its
would
investment because the
encourage
taxpayer could get a larger share
of
cost
the
riod
back
time.
of
in
It
shorter pe¬
a
would
J.
Rundt
ggestions
made by
are
be
par¬
ticularly helpful to small concerns
in financing the purchase of new
equipment. What we are doing is
the old countries'
well
in
as
an
own
interest
as
effort to reduce and
nations
-
will
probably
domestic
markets, create ■■ mass
consumption, relinquish their
"high - markup - and - low - turn
over" aspirations, and abolish the
restrictions
numerous
their
output
limiting
of
absorption
and
goods, their man-hour productiv¬
ity, and their merchandising scope.
the past, at
such well-meant and
Unfortunately,
least,
some
in
well-founded admonitions
as
of the OEEC have resulted
tailed and lengthy but
those
in de¬
largely
un-
kept promises.
This is
tight budget situa¬
dividend
in later years.
enues
Before
discussing the major re¬
visions in the bill, we should con¬
sider
for
the
moment
a
back¬
ground of our present tax system.
It
has
grown haphazardly
the last 20 years with taxes
added
great need for increased
finance
to
defense
is
ments
War
impossible
system with
every
in
World
revenue
II
build-up since
almost
tax
over
being
top of taxes. This, of
was
due largely to the
on
course,
the
and
Korea.
to
It
revise
a
require¬
increasing,
since
almost
reform or revision results
revenue
immediate
some
loss
in
with
an
and markets
of
so
and
system
early
1930's.
of
sources
overseas
supply
frequently unable or
unwilling to
comply with
our
standards when shipping to us, or
incapable to absorb our exports.
taxes
represented
a
comparatively small amount of the
som
a
more
Next,
vision
let us discuss the pro¬
to grant limited relief to
address
before
Luncheon
Under
by
the
Secretary Fol¬
National
Meeting,
Press
Washington,
March 24, 1954.
Club
D.
A
banker
has
no
right to
that the children of
mand
an
de¬
ap¬
taxation of dividends plicant for a mortgage attend a
provision which many dis¬ certain school. The banker can,
patches would indicate is the only however, insist that the hazardous
and Means Committee.
roof be repaired atop the dwelling
thing in the bill.
The
Committee for Economic
There
is
an
inequity in the for which the loan is desired. By
Development, in 1947, in its ob¬
present tax
treatment of divi- the same token, Uncle Sam is
jective tax study, recommended,
dends. The corporation pays a hardly permitted to interfere with
among other things, that the tax
52% tax on earnings before any¬ the purely internal political prob¬
system be revised to give greater
thing
is
distributed
to
stock¬ lems of other sovereign nations.
depreciation
leeway;
that
tax
holders.
Then the stockholder in But the question arises whether
many
the
of
minority
who
men
members
of
are
the
now
Ways"
rates be lowered rather than
sonal
that
exemptions
per¬
increased;
and
steps be taken to reduce the
double taxation of dividends.
Many
other
reports
could
be
the
double
—a
turn pays a tax
varying from 20%
to 91%. If you follow through on
$100 of earnings of a corporation
you will f}nd that the corpora¬
tion pays a tax of $52, leaving
$48.
dividends, the stockholder in the
and
the
that
objectives
If all this
lowest
of
provisions
many
have had
general
in
this
bill
widespread support.
many cases
In
there has been pretty
agreement
restraints
these
evident then because
Federal
*An
at
revisions
changes which
the
in
effects
not
present
the
to
made
inequities
the
in
back
were
the
the
of
Some
handicaps
The
declines
during the first
stance,
cited to show the demand for tax
Inequities and Handicaps
were
and
flexible depreciation. Incidentally,
this minority report was signed by
rev¬
enue.
date
The reports also contained a pro¬
as
to
what
should be done.
Thus,
this
does
tain revisions which
denly
are
cooked
based
C.,
tions and
up;
we
its
not
con¬
have sud¬
provisions
entirely
to
tax, which
as
what
1936
was
we
many
investiga¬
then
dividends
the
from
free
entitled
to
make
sure
that
such economic reforms be adopted
by
others
would
on
requiring
put the
their
own
our
help
as
assistance-seekers
feet
at
the
earliest
possible time.
call
were
the
same
first
And,
free
"cooperation
is
a
If
we
Continued
had the
on
same
difficult
between
and
the
delicate
process," which compels us to
avoid "blustering and domineer¬
page
64
In the words of
Eisenhower, "What
America
doing
ing
methods."
is
to
and
tested
our
areas
friends
our
con¬
tinually successful business meth¬
ods.
This has cost
promise
us
dearly. What
been
have
to
seems
laxity, com¬
condonation
and
this
in
respect, may have both weakened
western cohesion and lowered our
prestige abroad..
Naturally,
cannot always be
most Americans
like to be. But
one
loved, although
probably would
should be respected, if for no
other
because of
reason,
economic
It
pa¬
our
in
achievements
which most of the free world
be
to
appears
now
logical
that the recipients of our aid
can
less affection for
less and
muster
the giver.
It seems to be absurd,
however, that our overseas allies
quite often voice the opinion that
"Whatever may work in the U.S.A.
surely cannot function elsewhere."
Such views are expressed even in
matters in
wealth of
no
related to our
way
resources
the size of
or
population and country.
our
Since
V-E
Day,
have spent
we
about 40 billion aid dollars in va¬
rious
Much
forms.
helped
sum
this
of
alleviate
to
huge
human
rebuild war-torn re¬
gions, and to strengthen the antiCommunist bloc.. More than $17
billion
eral
authorized and
been
have
still unspent.
are
But already
sev¬
it had become
pretty obvious that we did not
accomplish all we might have ex¬
years
ago,
The fault
pected.
to
appears
be
partly inherent in some of the tra¬
weaknesses
ditional
of
our
over¬
seas
friends,
own
inability to sell the Ameri¬
partly
due
to
our
economic concept.
can
The almost miraculous recovery
of
West
the
Germany,
boom
of
the Belgian department stores, and
the easing of other internal eco¬
nomic
strains
in
Europe,
follow¬
ing some moves toward liberaliza¬
tion, seem to be proof that when¬
Old
ever
freed
World
economies
their
from
were
fetters—
own
the insistence of far-sighted
upon
Europeans, but also along the lines
of
American
prescriptions—they
responded favorably.
Conversely,' when
Europeans
of our eco¬
nomic advice, when they refused
failed to listen to any
benefit
to
from
experience,
our
their national economies and bod¬
bilities
Unmitigated "dollar diplomacy,"
a
normal
usually the
now
pay
several
of
some
ies politic retained perilous insta¬
President
brabket rate.
upon
long objective study.
is
i.e., the threat of excluding from
20% tax, leaving him $38 out of our aid any nation not willing to
the $100 and if he should be in toe our
line, would, indeed, as
the $50,000 bracket the net would Secretary of
State John Foster
be $13 for a single taxpayer and Dulles put it,
"attack the very
heart
of
United
States policy."
$20 for a married couple.
bracket would
Prior
bill
paid out in
were
he
however, that
in
suffering,
matter of real concern
to American traders who are faced
a
failed
over
shares.
curity of the occidental world.
faster rate
year. In the long
posal to permit greater latitude in
tion, we have also had to keep
making annual allowances for de¬ run, of course, there is no in¬
constantly in mind the revenue
It is also of direct interest to the
crease in tax deductions; in later
preciation.
i loss involved in each change. We
the tax allowance would American taxpayer at large who
The Democratic minority of the years
gave
priority to those changes House
be
less
but taxes higher.
This in all likelihood will have to foot
Ways and Means Commit¬
which were needed to remove the
the bills of any imbalances or def¬
tee, in 1947 and 1948, suggested a provision is one of the most im¬
gross inequities or those which we
icits developing in the wake of
comprehensive revision of the en¬ portant in the bill and would
the failures of some of our friends
thought would, by stimulating tire income tax
stimulate
spending
for
system and listed greatly
abroad to put their own houses in
activity, increase the national in¬ such
important matters as double modernizing and expanding plants
come
order.
and, incidentally, tax rev¬
and for creating jobs.
taxation
of
Because of the
this
do
."
.
allies
and
tent
As everyone
of
win
to
advice given to strengthen the en¬
tire western complex and the se¬
Several
.
have
we
we
the facts.
value
We
.
.
at least temporarily and partially,
ultimately to do away with U. S.
loans and grants.
It is therefore
simply to allow tax deductions
for depreciation
in accord with
knows, the
automobile, for in¬
.
The fact remains,
the OEEC in
have to widen their class-divided
method
one
double
so-called
s u
S.
lib¬
ciation,
These
Paris.
many
considerably
Co¬
operation in
most
years
military ef¬
our
as
home.
at
spiracy.
its
tiq uated
a n
been
actual
with
security
forts
face of the worldwide Soviet con¬
economic
great deal of criticism that the
were
inadequate and
accord
sistance
New
streamline
allowances
in
of military and economic as¬
is as much a part of our
way
own
sug¬
gestions to
adopted.
was
is
ber of
«
-
This plan
considerably.
revenue
merchandising
World
f- "
the
increase
pro¬
mass
because unity among free nations
is our only hope of survival in the
accept a num-
many
nevertheless
would
a
cause
will
It
die," i.e.,
also have to "expand or
hard¬
ships, especially to smaller busi¬
nesses, and proposed a more flex¬
ible
alternative, but one which
would
proach
of aid,
survive.
to
only
not
will
World
Old
have to seek,trade instead
Treasury
The
board.
the
across
and
load
aim has been to deter¬
suggested
what changes should be.
mine/
preciation
that in the view of the heavy tax
those
in a
the
Ways and Means Committee was
considering a bill to reduce de¬
while large-scale
studiously discouraged.
unnecessarily low,
tion
search for additional revenue,
cost
we
ex¬
(includ¬
allowance for
tear
1934,
(1) ultra-con¬
adhered to abroad:
cynical pessimism; (2) absence of
duction, and (3) persistence of cartels. Concludes, in many
areas outside our own, prices are artificially high and produc¬
rea¬
the
for
and
wear
a
...
ing a reasonable
obsolescence);—In
For instance, they stated
jobs.
gress, our
made for the best interests of the
to peace
war
and would encourage
of
spending by consumers.
as
tax
haustion,
The
.
of the
stance,
deductions
allowance
sonable
might
on
vision of the tax structure.
by
servatism and
law
itself provides that "there shall be
persistent demand for re¬
a
as
if it wishes to survive, it will also have to
rooted economic precepts
be
could
that the cost
only once.
allowed
au¬
question,
little
off
not
)
the tax
practice,
raised
written
the normal incentives
on
instead of aid,
expand, Mr. Rundt points out Europe's difficulties in adopting
American methods and economic reforms. Lists as historically
realizing
the future.
in
Asserting the Old World will not only have to seek trade
his policy was consist¬
and in accordance with sound
accounting
In
recent years,
war
and inflation
have kept the economy active, and
again the bad effects of the tax
system have been hidden.
None
of us wants to depend on war and
inflation in the future; we must
growth
the cost of ma¬
thorities
a
restraint
serious
Export and Foreign Exchange Consultant
ent
changed,
unless
By S. J.* RUNDT
each
So long as
that the present
view
our
nomic
'
Folsom
is
system,
amount
off
chinery, equipment and buildings.
get
1936, but it is
write
current! income
allowance for
as
different
story when the Federal tax re¬
ceipts represent about 25% of the
national income, as they do today.
of¬
major revision
B.
in
did
tax
It con-
to
We
income.
the
to
as
could
he
against his
year
by for a while
with a bad tax system which takes
7% of the national income, as it
and
stitutes
first
able
be
o m-
ficials.
n a
national
C
Treasury
of
total
e e
Means
m
M.
leeway
which
the Tax Revision Bill now before Congress,
Under Secretary Folsom says it is not a tax reduction measure,
but a long overdue tax reform. Says it is Administration's
view that present tax system, unless changed, will exert serious
restraint on economic growth in the future, and lists as major
revisions: (1) a more liberal policy toward depreciation de¬
ductions; (2) partial relief of double taxation on dividends;
(3) liberalization of provisions for dependents and medical
expenses; and (4) exemption up to $1,200 of retirement pen¬
sion income. Reviews Administration's tax and budget policy.
Commenting
Economic
Concepts oi Two Worlds
major revisions: first, the allow¬
ance for depreciation.
Prior to 1934, the taxpayer had
FOLSOM*
By MARION B.
The Clashing
look at some of the
us
7.
.
'
Some Major Revisions
abroad
in
the
from
those
beyond
comparative
sources.
Several
resulting
poverty in re¬
of
the
histori¬
cally-rooted economic precepts ad¬
hered
to
abroad
for
party-political
and
sociological
reasons,
ac¬
count for such failures as the fol¬
lowing
ones:
1
(1) Ultratconservatism and cyn¬
ical
pessimism,
France,
own
have
keep
from
for
instance
French
in
entrepre¬
having faith in their
country's future. Our grants
done little to change this.
neurs
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1535)
The farmer in the Gascogne
keeps
his gold coins buried in his back¬
The factory owner does not
yard.
reinvest
reasonable
a
of his
profits in his
even
earnings made
the
Marshall
possible
Plan.
to
circumstances lo be construed
State
as an offering
of these Bonds for sale or as a solicitation of an offer to buy any of these Bonds, and is published mi
behalf of only such of the underwriters, including the undersigned, as may legally offer these Bonds in such State.
The offer of these Bonds is made only by means of the Official Statement.
on
The
by
NEW ISSUE
small
or
no
Throughout, French¬
tax-dodging
sport.
The flight
us.
have
men
no
any
i
plant, not
shopkeeper received little
help from
This announcement is under
percentage
own
$233,000,000
elevated
national
a
abroad
f
o
c-a
i t
p
a
1
continues.
France, probably the weakest link
unification efforts, in
1952-53 rqcpjved the lion's share
Commonwealth of Pennsylvania
of western
of offshore procurement
total of $693 million, and
orders,
a
Pennsylvania Turnpike Revenue Bonds
currently
spends the "franc ^equivalent of
$230 million in--subsidies to prop
French
exports,
destined
(2)
to
including
the
■
Kremlin
those
3.10% Series of 1954
sphere.
In,
for instance, Italy the
-final -retail- price of many con¬
Payable solely from the Revenues
hereinafter described
as
sumer
goods produced with U. S.
financial 'aid or American-sup¬
plied materials and machinery, is
a multiple of the end cost to the
manufacturer. Thus our assistance
has not
substantially improved the
standard of living of the average
Italian,
mainly
not
was
used
to
produce more mass consumption
goods at lower prices. Instead, it
primarily benefited a few politi¬
cally favored fat cats whose short¬
sighted methods still help to guide
Italy's internal policy.
servations
U.
S.
Senators
tives
both
of
mented
that
prevalent
These ob¬
made
were
by several
and Representa¬
parties who com¬
the
conditions
still
in
Italy, in part with
our
help and/or tacit approval,
contribute materially to the everpresent Communist danger in that
country. (In Livorno, our Army's
supply port south of Pisa, nearly
the entire municipal administra¬
tion
is
in
Communist
looks
one
its
and
about
that
hands.
dismal
If
city
utter
poverty, it is not
overly surprising that its inhabi¬
tants
be
can
agitators,
misguided
not
by
Red
mention
to
Red
money which in part, by the way,
is derived
from
U.
S.-financed
military
orders
factories
given
;
to
Italian
>
where
Moscow-aligned
labor organizations are the direct
beneficiaries of offshore procure¬
ment.)
(3)
In, for instance, Austria
five-sixths of all products are the
output
200-odd
some
cartels.
Dated
J. P.
addition, trade and crafts are subpect to licensing by what in effect
are
medieval
guilds.
They are
supervised by inflexible code so
that one must apply to one's own
The Bonds may
operating
in
Vienna
Interest exempt,
Urnler the
who
around
The Bonds
Indenture
direct
1948
(pop. 7,000,000 and
Indiana), received
$1.6 billion in overall U. S.
Europe.
Marshall
to
1951
44%
Plan
was
of
aid
invested
cost
a
Department official.
position is
Austria's
carious
its
all
are
additional Bonds issued under and secured by an
between
the
from any
or
interest
on
the Bonds.
of the Northeastern
Extension
to
other Projects which shall be financed under the provisions
of the Indenture.
Pennsylvania Turnpike Commission and
The Bonds
enues
are
,
further secured
conditions, and limitations
Bonds issued under the Indenture
rev¬
Turnpike (Existing System), subject in all respects to the provisions
of the indenture between the
the
Pennsylvania Turnpike Commission
June 1, 1948, and such tolls and
all
by the pledge of the tolls and
(over and above the costs of operation) from the Pennsylvania
and
therein set forth, and
from
Fidelity-Philadelphia Trust Company,
the payment
are
revenues
Trustee, dated
as
as
of
shall only be available for
of the principal, premium and interest on the Bonds
equally and ratably secured by the pledge of the tolls and revenues
(over and above the costs of operation) from the Delaware River
issued under the Indenture dated
Extension (Initial
1948 shall have been
bonds
Project), from the above mentioned Projects and
These Bonds
arc
offered wbeft,
as
and if issued and received by
us
now
or
as of
September 1, 1952, after all
hereafter issued under the indenture dated June 1,
paid
or
provisions made for their payment.
and subject to unqualified approving opinions of Mitchell and Pershing, New York. N. Y..
Townsend, Elliott & Munson, Philadelphia, Pa., Schnader. Harrison, Segal & Lewis, Philadelphia. Pa., bond counsel, and Theodore S. Paul, Esq., counsel
sure,
for the Commission. It is
expected that delivery of the Bonds in definitive form will be made
on or
about. April 29. 1954.
a
Price 100%
provinces where both
industry and agriculture play
important role.
achieved
not pledged to the payment of the principal of
most pre¬
The Russians occupy
one.
eastern
are
issuance of additional bonds under the
in the
be
provided in the resolutions authorizing the issuance of the. Bonds.
transfer and the income therefrom, including any profits made on the sale thereof, are exempt by statute from taxation
within the Commonwealth of Pennsylvania.
of the First Section
senior State
To
as
Pennsylvania Turnpike System. The Indenture provides for the
Soviet Zone, including Soviet-sur¬
rounded Vienna, according to a
public statement of
least 30 days'prior notice, not earlier than June 1.1959,
Fidelity-Philadelphia Trust Company, as Trustee, dated as of Sep¬
tember 1, 1952, for the purpose of paying the Commission's share of
the cost of the Bridge Project, as defined in the Indenture, and the
of
Western
registered bonds without coupons in denominations of $1,000
interchangeable as provided in the Indenture.
Eligible by statute for investment for Savings Banks and Trust Funds in Pennsylvania
and for deposit as security for public funds in Pennsylvania.
aid, i.e., more per inhabitant or
square mile than any other area
in
are
was
by the unions to lower
and by the industrial
"chamber" to increase his prices.
size
multiple thereof and
in the opinion of counsel named below, from all present Federal income taxes under existing statutes and decisions.
case
forced
the
upon at
any
Enabling Acts, the faith and credit of the Commonwealth
The Bonds, their
-wages
Little Austria
be redeemed
American investor
an
or at
Morgan & Co. Incorporated, New York City, or at Mellon National Bank and Trust Company, Pittsburgh. Principal of registered bonds without coupons
and of coupon bonds registered as to principal payable at Fidelity-Philadelphia Trust Company, Philadelphia. The Bonds arc issuable as coupou
or
compulsory, as is
membership „in the professional
and business associations. The
June 1 and December 1) payable at Fidelity-Philadelphia Trust Company, Philadelphia,
on
bonds, registerablc as to principal, in the denomination of $1,000, and as
purposes
-is known of
-
.
future competitor to enter a trade.
Union membership is for all prac¬
tical
Due June 1,1993
April 1, 1954
Principal and interest (December 1, 1954 and semi-annually thereafter
In
an
Accrued interest from April i, 1954 to date of delivery to be added.
And Austria has
noteworthy
successes
in
For
the past three years. Its unfavor¬
able EPU position has been re¬
information relating to the Pennsylvania Turnpike Commission and to these Bonds, reference is made to the Official Statement of the Pennsylvania
Commission
dated
April 7,1964, which should be read prior to
State from only
purchase of these Bonds. The Official Statement
any
such of the underwriters, including the undersigned,
as may
may
be obtained in
Turnpike
any
legally offer these Bonds til such State.
markably reversed; savings climb
steadily; exports have risen amaz¬
ingly; a nearly strikeless economy
.and stable government have been
maintained; the Communist Party,
since 1945, has been unable to in¬
its strength above
crease
a
mere
5% of the electorate. But the state-
Drexel & Co
B. J. Van Ingen & Co. Inc.
Harriman Ripley & Co.
incorporated
A. C. Allynawd Company
incorporated
Lehman Brothers
Kidder, Peabody& Co.
The First Boston Corporation
Blyth & Co., Inc.
,
Union Securities Corporation
Smith, Barney & Co.
<
„
Yarnall, Biddle & Co.
Blair, Rollins & Co.
incorporated
Paine, Webber. Jackson & Curtis
'
'
Equitable Securities Corporation
Eastman, Dillon & Co.
.
Merrill Lynch, Pierce, Fenner & Beane
c
i
'
'
.
owned
though
not
publicly-con-
Alex. Brown & Sons
Hemphill. Noyes & Co.
Phelps, Fenn & Co.
Salomon Bros. & Hutzler
Glore, Forgan&Co.
■
Stone & Webster Securities Corporation
'
•
Bear, Stearns & Co.
f
Shields & Company
'
with
New
banks have
misuse
York
of
been charged
dollar
incorporated
"Times"
Continued
White, Weld & Co.
April 8, 1954.
reports
on
page
in-
73
F. S, Moseley & Co.
John Nuveen & Co.
(incorporated)
funds; the
1
Stroud & Company
i
trolled
,
!
R. W. Pressprich & Co.
7
8
(1536)
The Commercial and Financial Chronicle... Thursday, April 8,1954
.
Indiana
Gas
Water
&
Water
Company,
dianapolis 2, Ind.
Dealer-Broker Investment
Co.—Annual
Inc.,
report—Indiana
North
1630
Meridian
Gas
Street,
of this issue since it must be of¬
&
fered
In¬
Jefferson Standard Life Insurance Co.—Survey—R. S. Dick¬
son & Company,
Incorporated, 30 Broad Street, New York
4, N. Y.
Recommendations & Literature
Also available
Co.
surance
of
first to
Again
are
$50,000,000
'mortgage
Life & Casualty In¬
surveys on
of
balance
involves
is
tend interested
to
Co., Life Insurance Co. of iVrginia, and Gulf Life Insur¬
$40,000,000
ance
pleated
parties the following literature :
Company.
keted only last July.
Koehring Company—Circular—Swift, Henke & Co., 135 South
La Salle Street, Chicago 3, 111.
Lunn Laminates, Inc.
Aviation
Stocks—Bulletin—Stanley Heller & Co., 30 Pine St.,
N. Y.
'
Buy
Low-Sell
copy—Stockfax,
per
North
420-C
36, Calif.
rities Co., Ltd., Ill Broadway,
Issues at Discounts
cis I. du Pont &
From
Recorded
Southern Natural Gas Company — Annual
report
Southern Natural Gas
Company, Watts
Co., 1 Wail Street, New York 5, N. Y.
ham, Ala.
Continental Assurance Company, Jefferson Standard, Kansas
Telephone Bond
City Life, Life Insurance Company of Virginia, Lincoln Na¬
Life, and Travelers)—John C. Legg &
&
tional, Monumental
Gas
Utilities
in
Canada—Bulletin—Ross, Knowles &
Co., 330 Bay Street, Toronto, Ont., Canada.
selected list of Common Stocks and
a
Rates
sion
v
Montreal
Taxes
&
Stock
on
the
a
Toronto
Also available is
booklet
Stock
on
Western
Air
Lines—Report—Walst°n
&
quarter of 1954—Laird, Bissell & Meeds, 120 Broadway, New
Public Utility Common
the
6, N. Y.
Also in the
issue
and
discussions
current
of Investment Trusts in
Japanese Economy
*
000
Co., 1 Wall Street,
The
*
market
with
the
former
seemingly
having the better of the
time
wears
sponsoring
syndicates
not
—
Arkansas Fuel Oil Corp. — Data — Thomson &
McKinnon, 11
Wall Street, New York 5, N. Y. Also in the same circular are
data on Glenmore Distilleries Co., National Fuel
Gas Com¬
pany,
New Jersey
Zinc Company, Singer Manufacturing
Company, and True Temper Corporation.
Black
& Decker Manufacturing
Co.—Memorandum—Auchincloss, Parker & Redpath, 14 Wall Street, New York 5, N. Y
Chemical
memorandum
on
Union Tank Car Co.
Co.—Memorandum—Smith, Barney & Co.,
Vail Street, New York 5, N. Y. Also available
is
on Northern States Power
Co.
a memo¬
randum
Eclipse Corporation—Annual
report—Buffalo Eclipse
Corporation, North Tonawanda, N. Y.
Central Maine Power—Analysis—Ira
Haupt & Co., Ill Broad¬
way, New York 6, N. Y.
Also available is a review of Chi¬
Pneumatic Tool.
Christiana
120
Securities
dicated
that
Co.—Bulletin—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
—
Analysis
—
Street, New Ybrk 5, N. Y.
Gulf Oil Corporation
Box 1166,
Hugo
_
to
up
was
market
be likely in the
come
Gartman, Rose & Co., 1 Wall
their
new
•
-
<
S^innes—Circular—Oppenheimer
New York 4, N. Y.
-
-
& Co., 25 Broad Street,
is
mounting
offerings coming
calculated
now
of
public
that
utility
market.
put
from
are
the market less than
on
Cleveland Electric
Co.
bonds
But it
is
$50,000,000
is
preparing
$20,000,000 of
will
bonds
possible
by
pre¬
a year
which
various
it
Illuminating
offering
an
new
of
first mortgage
if cleared
plans,
agencies,
to
have
up
for bids the first week in May.
And
Columbia Gas System, Inc. has
Long Island Lighting
registered $20,000,000 of
has
Co.
new
subordi¬
nated debentures due up for bids
on
April 21.
But bankers can
series E preferred for the purpose
of redeeming a similar amount of
count
carrying
convertible,
getting only
on
preferred
portion
a
outstanding and
5.25% dividend rate.
now
a
near
ideas
in¬
would
term to
of
prices
Subsequent settling movements
large fractions to well
over a
point off the original reoffering prices and inversely raised
the yields accruing to prospective
NSTA
NATIONAL
buyers at the lower levels.
Notes
Out-of-town
insurance
compa¬
nies and pension funds, including
some
nada
of
the
larger units in Ca¬
not; inclined
to push
are
purchasing at these levels, accord¬
ing to people who have been mak¬
ing the rounds to keep up con¬
tracts.
They have the
money
but
are
ing
to
disposed, at the moment,
and wait things out.
more
sit
back
cannot
contention
see
any
is
reason
on
a
that
they
for buying
3.05% yield
basis, arguing that
a
probably
rewarded
SECURITY
officers
The
A
winter
annual
a
same
basis.
on
pretty
was
24^
:M
,
dinner
at
the
same
at
the
time
so
there
great deal
can
be
also
would
After
a
issue.
all
or
It
accomplished by getting the National Com¬
entirely
was
be
gross on
national
any
Financial
quotas for the coming year .on the "Com¬
Chronicle"
advertising for the Convention
decided that each affiliate would be
given 6%
of the
gross
on
dealer ads and 10%
of the '
commercial ads; in this way, local affiliates as well as the
organization, will benefit from all ads appearing in
City Convention number of the "Chronicle" this
Atlantic
year.
the
—
discussion of the advertising situation, it was decided
given credit for
advertising turned in in their territory, either by themselves
through "Financial Chronicle" solicitations and the affiliate
would
the
be
For the National,
mitteemen together at the beginning of the fiscal year.
little patience
triple A obligations
much the
accomplished
Council of the
in..Chicago Jan.
met
business advantages to be gained by being there.
mercial and
be
Executive
meeting on Sunday
Jan. 24th and on the 25th there was a meeting of the National
Committeemen at which plans of the organization for the coming
year were fully discussed. It was gratifying to have so large an
attendance, and it is suggested that in future years every affiliate
do its utmost to send the National Committeemen to Chicago for
this meeting. It is centrally located, the time element away from
the desk is small and the Bond Traders Club of Chicago holds its
great deal
to eliminate
will
ASSOCIATION, INC.
the
of
Security Traders Association
1954, for their first meeting.
•
*
with
or
TRADERS
members
and
National
the opportunity to pick up double
Pittsburgh 30, Pa.
bankers
knocked
single A bonds
Annual report —Gulf Oil Corp., P.*0.
of
buyers
the
of
perhaps to overemphasize the
weight of this figure.
and yields.
Their
Foremost Dairies
the
determined to buy choosingly be¬
'
institutional
which
on
competitive bidding sales, recent¬
ly have seen fit to turn such un¬
dertakings loose when it
'♦
May,
which took up new issues, through
Thermit.
a
contest
on.
*
Study — New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y.
Also avail¬
able are analyses on Central Indiana
Gas, and Metal &
A Lo available is
remains
a tug of war be¬
potential buyers and sell¬
Several
American Marietta Company
issue
new
in the throes of
as
*
is
reach
ers
American Locomotive Company — Analysis—Peter P. McDermott & Co., 44 Wall Street, New York
5, N. Y.
•
of
paring to bid is Northern Natural
Gas Co.'s proposed $40,000,000 of
new debentures.
Here again the
aim is to redeem an issue of 4^s,
re¬
$220,000,-
tween
New York 5, N. Y.
sues
of
next week through the first week
in May a total of some
are
foreign trade.
Stock Recommendations—Bulletin—Cohu &
cago
week
first
ago.
analyses of
the Electric Wire and Cable Industry and Spinning Industry
and
reasoning
knowledge
volume
Co., Ltd., 61 Broadway,
same
the
into prospect.
Stocks—Bulletin—G. A. Saxton & Co.,
Investors Beacon—Nomura Securities
of
calcitrant
Pulp Industry in Japan—Analysis in current issue of Nomura's
Buffalo
the
Street,
Mounting Calendar
Back
Inc., 70 Pine Street, New York 5, N. Y.
14
in
Massachussetts Turnpike Au¬
Other Issues Ahead
It
on
smaller
a
$27,200,000
|bonds,
Among the other projected is¬
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.
Bl?
Wall
road
market "will be
absorb
thority will bring its whopping
big $240,000,000 offering to mar¬
Together with the unsold
municipals backing up in dealers'
hands, these offerings should pro¬
vide ample fare for the municipalrevenue bond market for a spell.
Y.
Over-the-Counter Index—Folder
New York
Co., 35
New York 5, N. Y.
to
par
ket.
Co.—Analysis—May & Gannon, Inc., 161
V; Devonshire Street, Boston 10, Mass.
Exchange.
1 New York City Bank Stocks—Comparison and analysis for first
York 5, N.
the
Victoreen Instrument
and
of
And
Co., 27 William Street, New York 5, N. Y.
Life Insurance Co.
Commis¬
Exchange
mature
priced at
offering by New Jersey Turnpike
Authority, due in 1988.
information—Hourwich
Travelers Insurance Company—Bulletin—A. M. Kidder
& Co.,
1 Wall
Street, New York 5, N. Y. Also available are bul¬
letins on Connecticut General Life Insurance Co. and Aetna
Company, 22 Light Street, Baltimore 3, Md.
to
upon
issue
I
Share—Statistical
to
due
are
were
Next week the
Street, N. W.,
&
These
1993 and
called
State
—
financing
yield 3.10%.
V
State Loan & Finance Corporation — Annual
report
Loan & Finance
Corporation, 1200 Eighteenth
of
phase
—
analyzing the financial posi¬
tion and operating record of nine life insurance companies
(Aetna Life Insurance Company, Connecticut General Life,
Washington 6, D. C.
latter
bonds.
in
Secretary,
Building, Birming¬
Ilighs—Tabulation—Fran¬
j
Starter
group of $233,000,000 of Pennsyl¬
vania Turnpike Commission
Square, Boston 9, Mass.
Life Insurance Companies—Book
Natural
The
Riverside Cement Company—Analysis—Ask for
report T-31—
Lerner & Co., 10 Post Office
New York 7, N. Y.
same
got under way yesterday with the
offering by a nationwide banking
Manufacturing Company — Detailed analytical bro¬
chure—Blyth & Co., Inc., 14 Wall Street, New York 5, N. Y.
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
mar¬
an
Penn. Turnpikes a
Rheem
in Japan—Brief analysis in
bonds
the market.
Company—Analysis—Sheridan BOgan
Co., Inc., 1510 Chestnut Street, Philadelphia 2, Pa.
Oswego Falls Corporation—Analysis—Loewi & Co., 225 East
Mason Street, Milwaukee 2, Wis.
■■
Industry
Goodbody & Co., 115
—
3%%
new
Paul &
on
"Weekly Stock
Bulletin"—The Nikko Securities Co., Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan..
Camera
Memorandum
the
of
interval, however,
indicated $600,000,000
municipal and highway
obligations scheduled to come o»
of
New Jersey Natural Gas
investing—$2.00
Sycamore, Los Angeles
book
High—Non-technical
—
In
there is
Broadway, New York 6, N. Y.
New York 5,
first
only
of new money. The
aimed
at
refunding
ance
understood that the firms mentioned will he
It it
vv
Edison's
30-year
new
bonds
$10,000,000
Tennessee, National Life & Accident Insur¬
stockholders./
Commonwealth
Each
is
urged
Committee and
member
Advertising
to
work
as
a
member
of
house
to
reserve
space in this issue, as well as endeavor to get additional advertis¬
ing from banks, public utilities and corporations in whose secu¬
rities they trade.
urge
his
Preliminary plans were made for the Atlantic City Conven¬
tion, which City is celebrating its 100th Anniversary. The hotel
headquarters will be the Claridge and the plans and arrangements
are
in the hands of your able
Chairman who has staged
successful conventions—Edward H. Welch.
so many
It is too early to make
reservations, but to help the committee in their planning,
as
well
"
Continued
on
page
73
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1537)
ments
Common Stocks
COMING
EVENTS
For Life Insurance
Field
Investment
In
Investments
as
Vice-President
(Philadelphia,
in
Charge
New York Life
Institute
Investment executive of large life
Bank¬
Investment
of
of
University of Pennsylvania (spon¬
sored by the Investment Bankers
Association
of
America
School
Wharton
and
Companies
Advocates
and
common
Hotel
Louis
St.
At
Roosevelt.
Dealers
May 7, 1954 (New York City)
for the
Security Traders Association of
York
dinner
annual
000,000,
the
at
World
War
surplus
stocks
II
Waldorf-Astoria.
one-tenth
industry has risen to $861,or a gain of $595,000,000
equities are now le¬
gal in 38 states.
assets
little
In
fact, it
cannot
was
Association 19th Annual Meet¬
May 12-14, 1954 (Boston, Mass.)
Board of Governors of Associa¬
Exchange
Firms
meeting.
May 14, 1954 (Baltimore, Md.)
Baltimore
own
at
the
the
new
money
which
constantly investing.
our
was
before
inaugurating
critical
appraisal
given to the following ques¬
tions:
/'
J'
Is
the
1%
of
our
'
,
more
than 2%
of the
A
difference
in
*. '
very" substantial part of the
that we employ today pro¬
money
vides
a
return
that
the
will
other
million
return
5%
a
end
value
of
the
and
be
com¬
difference
of
represents
the
$871,000
pounding the 2%
tial.
Stated
dividends
20 years
year
in
of the
land.
This
National
...
cial
announcement
if
5%
for
were
way,
set aside each
a fund, the market value
portfolio could decline by
87%
and
would
accrued
the
net
be
the
value
same
by 3% bonds.
of
Societies
.
.
.
•.
•
no circumstances to be construed as an
offer to sell, or as a solicitation of
of these securities. The offering is made only by the Prospectus.
any
an
offer
to
Finan¬
NEW ISSUE
APRIL 6,
Security Traders Association of
Francisco SecuTity
Traders
Association
joint
Spring Outing at the Hacienda-
1954
267,000 Shares
JLos Angeles-San
Fresno.
Safeway Stores, Incorporated
(Chicago, HI.)
1954
Chicago 41st
Club of
an¬
4.30% Convertible Preferred Stock
field day at the Knollwood
Club, Lake Forest, 111.
nual
June 4, 1954
Bond
annual
(Cumulative; $100
par
value)
(New York City)
Club
New
of
field
Country
ough, N. Y.
Holders of the
share of Common Stock, subject
to
adjustment)
Company's outstanding Common Stock
for the above shares
record
(Canada)
Investment Dealers' Association
Convention
of Canada Annual
on
are being offered the right to subscribe at $100.35 per share
of 1 share of Convertible Preferred Stock for each 13 shares of Common Stock held of
at the rate
April 5, 1954. Subscription Warrants will expire at 3:30 P.M., New York Time,
on
April 21, 1954.
The several Underwriters have
at
and
Jasper Park Lodge.
June 11, 1954
per
at
Hollow
June 9-12, 1954
fConvertible at f46
30th
York
the Sleepy
Club, Scarbor¬
day
agreed, subject to certain conditions, to purchase any unsubscribed shares and, both during
following the subscription period, may offer shares of Convertible Preferred Stock as set forth in the Prospectus.
(New York City)
Bond Club of New
York 21st annual outing at West¬
Municipal
The
Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned or other dealers or brokers as may lawfully offer these securities in such State.
chester
Country Club and Beach
Club, Rye, N. Y.
June
16-17,
Minn.)
Twin
(Minneapolis,
1954
,
Club annual
picnic cocktail party, Hotel Nicol¬
let June 16; field day and golf
tournament, White Bear Yacht
Club, June 17.
City
June 18, 1954
Bond
-
Club
Bond
Merrill
Blyth 8C Co., Inc.
New Jersey
of
24-25, 1954
Ripley & Co.
Dean Witter dC Co.
an¬
Eastman, Dillon 8C Co.
Glore, Forgan 8C Co.
Goldman, Sachs 8C Co.
Spring
Kidder, Peabody 8C Co.
(Cincinnati, O.)
Cincinnati Municipal Bond Deal-,
crs
Harriman
The First Boston Corporation
Incorporated
Club, West Orange, N. J.
June
Lynch, Pierce, Fenner 8C Beane
(New Jersey)
nual field day at the Rock
Spring party.
Lehman Brothers
Stone 8C Webster Securities
Corporation
Smith, Barney & Co.
Union Securities Corporation
Wertheim 8C Co.
Sept 22-26, 1954 (Atlantie City)
National Security Traders Asso¬
White, Weld 8C Co.
A. G. Becker 8C Co.
ciation Annual Convention at the
Hotel Claridge.
23-25,
Minn.)
Sept.
(Minneapolis
'
Board of Governors of Associa¬
tion
of
Exchange
Stock
Hornblower 8C Weeks
W. C.
Central Republic Company
Incorporated
(Incorporated)
Hayden,i Stone 8C Co.
Langley 8C Co.
Hemphill, Noyes 8C Co.
.
Lee Higginson Corporation
Carl M. Loeb, Rhoades 8C Co.
Paine, Webber, Jackson 8C Curtis
(Philadelphia, Pa.)
Bond Club of
Philadelphia 29th
annual field day at the HuntingIon
Hallgarten 8C Co.
Blair, Rollins 8C Co.
Firms
meeting.
Sept 24, 1954
Incorporated
Drexel 8c Co.
1954
Valley Country Club, Abing-
ton, Pa.
5
Don't for¬
takes only 14 years for 5% money
May 21-23, 1954 (Fresno, Calif.)
Bond
the
that
money
takes about 24
to double itself whereas it
Conven¬
tion at the Palmer House.
June 4,
of
as
3%
years
is under
buy
;
(Chicago, 111.)
Federation
Analysts
com¬
maintained
were
fund
get,
of
yield differen¬
another
and
value
in
result
ing at the Country Club of Mary¬
May 16-20, 1954
similarly
provide a
of $2,685,000
at the
20-year period. The
out¬
summer
if
would
Security Traders As¬
sociation 19th annual
hand,
dollars
stock afford¬
.
admitted
New
York
Life
a
$5 million)
and we
On
one
common
total
.
'*
;
semi-annually
by the
would amount to
years
same
compounded
program,
a
received
ing
However,
Re¬
rate
dollars
invested in
yield
between 3% on a typical bond and
one-third
of 5% on a
high-grade stock of ma¬
stocks. Such terial
benefit
to
the
policy¬
or
the
with
maturing in 20
the interest reinvested
$1,814,000.
are
we
total
start
us
If this is invested
bond
same
end of 20
on
Let
in
\
Stock
of
3%
years, and
life
stocks?
(for
you.)
the
(1)
common
over
of
a
March of 1951 that life
insurance companies operating in
ing.
of
believed that they
insurance com¬
we
the
in
enough
semi-annually
over
a
and only 12 years for 6% money.
outstanding common stock of any pounded
long period of years, probably
company. Furthermore we are not
Without going further, the fore¬
Such a feature of
New York State were permitted to allowed to buy bank or insurance averaging 30.
going illustration has already
life company investment opera¬
company stocks.
purchase certain common stocks.
provided the answer to our ques¬
tions, that is, the compounding of
;
Very briefly this law permits us
tion—to our mind the higher yield
interest
over
a
Theory
long period, is
to invest the lesser of 3% of total
is of material benefit to the
All of you are well aware of the often overlooked by the ordinary
policyholders and is more than
individual but the actuary knows
*A talk by Mr. Woodruff at the Al¬
long-term trend in interest rates
adequate to compensate for the
umni
its tremendous force
in
the
Home-Coming Conference of the and how this has tended to con¬ of
difference in the degree of risk
Graduate
School
of
Business
Adminis¬
tract the sound opportunities to growth of policy reserves.
tration, New York University, New York,
March 20, 1954.
Continued on page 52
I will give you a simple illus¬
place funds at work in invest¬
only
Texas Group Investment Bank¬
tion
assets
in
since
invest¬
were
and common
May 9-11, 1954 (Dallas, Tex.)
ers
of
stock
common
legal invest¬ stocks must be registered on a holders?
companies national securities exchange and
(2) Does the extra return com¬
in only 28 states and total hold¬ have paid cash dividends in each
pensate for the difference in the
ings for the industry at that time of the last 10 years and earned
degree of risk and greater volatil¬
amounted to but $266,000,000. 4% on par value. Investments in
ity of the market values of com¬
Since 1946 the total investment a single company are limited to
mon
(St. Louis, Mo.)
Municipal
close
admitted
of
ments for life insurance
Group annual outing.
New
the
common
Apr. 29-30, 1954
reviews history
average" plan in timing purchases.
Background
the
at
matter
have
flexibility, and, most important,
an
opportunity for higher yields
common
will reach 400 before it touches 200.
Association of Customers Brok¬
dinner
million dollars.
all
York Life studied the entire
I
panies greater general investment
Company with
stocks, and forecasts Dow-Jones Industrial Average
Apr. 29, 1954 (New York City)
anniversary
"dollar
a
(I
individual
example sheets for distribution to
veals experience of New York Life Insurance
Commerce.
ers
on
in
this factor at work.
New
afforded
Company
company
investment
of
hope
on
ment
stocks and
which such investments should be made.
company
points out basis
the
Finance
of
insurance
tration
that
an
adequate rate of re¬
the funds employed. Being
faced with these conditions we at
Pa.)
ing second annual session at the
safety
turn
of Investment Department,
Insurance
maximum
provide
By H. EVERETT WOODRUFF*
Apr. 12-16, 1954
of
9
;
Shields 8C
Company
Spencer Trask 8C Co.
10
The Commercial and Financial Chronicle
(1538)
Today
whom
someone
or
The Three R's for
did
know,
ought
to.
something.; which
brought his
Jim Farley
By HERMAN W. STEINKRAUS*
he
name
would
into the news, ;
write him a
*
-
tt •!: &
4 St. SL :*■
tjf
nice letter and sign it with green
ink. There didn't a day go by that
President, Bridgeport Brass Company
Jim
Recommending application of "reading, writing and arithmetic"
judging business conditions, prominent industrialist points
out how reading news and trade papers, writing more personal
letters, and "adding new lines, new salesmen, new warehous¬
ing and at same time, subtracting unprofitable lines of a busi¬
ness enterprise," can
help the economy. Urges dividing size
of sales territories and cultivate existing markets more intensely
didn't
letters
in
he
and
write
himself
made
of
friends all over the'United States.
How many
write
to
leader.
of us take the time
good customer a nice
a
order?
nice
We
Cites facts of the current downward
trend, and lays
badly needed inventory readjustment. Gives
why decline will not extend much further, and looks
for continued high level of defense
spending. Predicts a higher
disposable income in 1954.
reasons
out elab¬
get
orate
catalogues, we get out mail¬
pieces of a stilted variety—
a
little
writing of simple,
business
bit
about
the
simple approach
I've observed
friendly, personal letters, followed
plenty of busifrom
its all-time peak of
which used to be so much the
1953,
consistently over a period of time,' nessmen in plenty of industries,
everyone is asking the oracles or order of the day, and which we
might prove to be the most sue- and I know of no group that has
the
miracle
still find many people using who
cessful writing you could do.
to have more thorough knowledge
men
to tell
do not understand highbrow eco¬
When we come to arithmetic, of their comthem whether
nomic terms. These are the famil¬
we naturally have to learn about ^modity
and
we
are
in ■ a
iar three R's —reading, writing,
addition, subtraction, multiplica- industry than
and arithmetic.
depression, a
tion, and division. I want to talk the purchasWith
the
slight
recession,
The
or
other
some
form
of
your
the
ailment.
recall
early
the
of
of
would
of
a
like
to
reading,
and
give serious consideration at times
did
stuff
in
trade
papers,
not
the
H. W. Steinkraus
time
who
Most
of
a
them
have
never
business but
others
who
do
with
ings of calamity to
had
to
their
warn¬
come.
that
successful
•From
address
an
by Mr. Steinkraus
before the Copper and Brass Warehouse
Association,
White
Sulphur
Springs,
West Va„ March 24, 1954.
„
he
General?
master
simple
a
Farley
when
found
Jim
tract those
so
anrl
Farley had
that
time
would
•
for
increase
he
.
.
.
suggest
of
c^s
number
or
more
\bl TnT
tot
vou
mi.LIuh.
an
The
offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.
any
of these securities.
NEW ISSUE
April 5,1954
Under
of
(without nominal
or
par
scribe,
Company is offering
at
for each
expire
at
to
division, divide the size
the
at
rate
right
of
to sul>-
one
share
shares held of record April
2, 1954. Subscription Warrants will
3:30 P.M., Eastern Standard Time, on April
19,1954.
During and after the subscription period the Underwriters
at
were
offer shares of
may
prices varying from .the subscription price.
V
rv
-■
.
vour
that you can
so
who
men
Right
your
divide
respon-
more
aipong
Kidder, Peabody & Co.
Blair, Rollins & Co.
eral
now
being handed to
business
and some
us
Elkins, Morris & Co.
/
.
W. H. Newbold's Son & Co.
to
The
*9
Newburger & Co.
-
has
ferson
Parrish & Co.
busi-
bad
Company
Reynolds & Co.
a
f
Warren W. York & Co., Inc.
Wurts, Dulles & Co.
-
»
Blair F. Claybaugh & Co.,
*
-
Yarnall, Biddle & Co.
•
'
*
America
or
re-
us someI
Financial
-
**•
is
down
the
the
-
forecasts
are
I
Beadling Adds to Staff
far
from
•statistics
that
of
~more
some
econ-
alarming than
at
*
to
throw
but T
you,
a
lot
will
of
say
most
'
/A -i
,
•
With
Suplee, Yeatman & Company, Inc.
Eldredge, Tallman
CHICAGO, 111.—Samuel Levinson, Chicago real estate operator,
is
now
associated with
scaling the heights ever since
the
early forties.
We've
been
experiencing the greatest and
most
sustained
activity
in
period
whole
of
high
economic
Eldredge,
Tallman o6 Co., 231 UUUui j-ia uanc
jlaiiiiiaii &
tui
South La Salle
Ofrpp,t
rppidfprprl
s>treet,_as a registerea rpnrP«!Pntarepresenrative.
the
address
Purehasine
EimiraElmira,
1954.
by
Mr.'Zelomek
Agents
wiiiiamsport,
the facts
are
Production is off 11%
from the
high.
Unemployment is
of
March; 25,
to 3.6 mil-,
up
lion; but it is still 1.1 million
be-
low the 1950 high.
We
of
do
not
previous
drastic
sharply
bank
such
see
major
lower
symptoms
recessions
declines
in
securities
failures
as
prices,
P
Now, before
sharnlv
lyze
how
mounting
&
we
much
will
go,
a
market,
bankruptcies
go
to ana¬
on
further
the
de¬
it is necessary
to
1°^
^
^ factors may
aje about run their, course.
I believe that the
decline from
the 1953 hlgh, which has been
a
normal
a
readjustment
Using business trend,
the
even
in
due to
was
following:
(1)
Production
expanding too
rapidly, with a resultant overproduction and accumulation, of
inventories.
I'm
going to go into
the question of inventories in just
a
moment.
(2)
A
lower
level- of
orders following the
of the Korean War.
defense
termination
(3) A very tight money situa¬
tion
during the early part of 1953.
(4)
Declines
mainly
before
Association
Ta.,
glve
%___
_
the pres¬
due
*An
to
on
1953
-
our
con.fldent.
•
going
ent downward trend:
cline
of the important
in(Special to The Financial Chronicle)
dicators,, while showing declines
YOUNGSTOWN, Ohio—John C. from the *1953 highs, are neverWick has been added to the staff the less
making excellent showof Beadling & Co., Union National ings in relation to earlier
years.
Bank Building.
Remember
that
we've
been
-
^
pm
^
Present Downward Trend
Here
the
by the actual situation.
don't '-like
to
ralnules;
of Doom
warranted
*
**
•
fL
no
outlook, I always find
crossing swords with the
prophets of doom. I have to do it
again. I have to say to you that
become .connected
T
t
business
Chronicle)
us
major depression at this
any time in our lifetime.
a
or
y°"„^y reasonlnS m a few
J
Singer, Deane & Scribner
tnat
past mistakes.
our
ag l promised
well as
among large
myself
Building.
-
A. E. Masten &
that
feallze
Now in the last year, whenever
have talked about the
nearby
-
Company
Dellaven & Townsend, Crouter & Bodine
to
as
of the dire predictions.
!
with McDaniel Lewis & Co., Jef- -omists
*•
Green, Ellis & Anderson
about
Crossing Swords With Prophets
might be surnrised
we
.
JR.-Holmes
Incorporated
Auchincloss, Parker & Redpath <E. W. Clark & Co.
because
comparison
rpaliyp
leadership will force
avoid
proceeded
below
expected
levels, even taking into account
the sharp gain in
unemployment
I
Stroud &
world
as
can
not
mendous amount of highbrow lit-
prove.,
; Merrill Lynch, Pierce, Fenner & Beane
Hemphill, Noyes & Co.
Incorporated
are
as
top. There is
GREENSBORO, N. C.—William
Lehman Brothers
the
to
tail
thing about
weU as among small
Although, of course, the
complaints vary with the individual and the organization.
There is no denying that gen-
how quickly our business will im¬
Drexel & Co.
falge
while history doesn't exactly
concerns.
Last, but not least,
the profits in the
legally be distributed.
Corporation
premise,
make
fail
America in 1930-32,
in 1937-38.
to
try
forecasts
producers
distributors,
concerns
men
Maybe we have
forgotten them because of the tre-
(Special
The First Boston
false
say
evidently
compiaims aoout oaa dusi
am6ng
Joins McDaniel Lewis
'
predic-
the
on
history will always
H is easy en0ugh to
now
negg
a^jne
ago.
years
proach. ;and
may
I'll
forecasts
as
comDiaints
Let's get back to the simple ap¬
Prospectus
even
become
These
America in 1953-54 is quite different from America in 1920-21 or
business,^ think
though
hear
A
dealers in securities and in which the
I
time
thp
ara
of
some
erature
Copies of the Prospectus may be obtained from any
of the several underwriters only in States in which such
underwriters are qualified to act as
that
Some
will
baged
are
i.
i
denying that we
are in a business
readjustment. As
organization in the form of bonuses a matter of
fact, this business
for your people.
readjustment
was
indicated
as
Some of these simnle rules of
i0ng as a year ago by those who
reading, writing, and arithmetic were then able to
recognize the
are just as pertinent today as
they signs. So far, the correction has
seven
Common Stock for sale
For
their efforts.
$39.75 per share, for the above Common Stock
it
another
exactly repeat itself.
^
That will help give your men new
incentive to work and to increase
the
be
1937-38.
1930-32.
^ this~back_ those who
f
•,* L"; „,511
evidentlv
solidly grounded
don't keep so much of the control
of the business in your own hands.
the holders of its Common Stock
P
r
my
have been weak.
your authority and
sibility, spread it to
divide
The
tiong
will
give you as few
only
are
V J;or your nipn wno
heads of your businesses,
value)
that
premise
and the extent of the pres-
figures,
some
,
Common Stock
believe
another
.
...
e
or
You're going to have to ,listen P peat i£sel£' U does teach
®
If you
territories
vour
oivp'v
Company
and
They
this
1920-21
when il wiu first be8in to pick up-
exneHenc"ng
cultivate your market more inten-
Pennsylvania Power & Light
along,
comes
nn
you may
704,917 Shares
hi.Snf«
in
postwar
as p0?s,ible'„
you have
nnntnnlino ihom wiih^no merfinm " would be irresponsible of But think most o£ "No Major read my
me recent book,
Depresof effort
muHi^lv the number iust to give you my conclusions sion in Our Lifetime." • There I
For exampl^ incrLse the uTe of o££ the cu££' with n0 indlcatl,on o£ made the point, which I want to
kilnhnn^ rfirnnt ^ffii norfnnni my reasoning. I want you to know repeat now, that the responsibilimiinU°inA or.any phase
solicitation, 1 fnt nhnci on ,„hinh why I think what I think Because tiesimposed .upon America by
which
I believe that
after business
go
This advertisement is neither
drnr,
sharp
And then this temporary
arrive at some conclusions
Those who have expected a
re8ardin8 how lonS ll
last; major recession or depression
how tar U wil1 g0' and wher1 and evldentIy hava not realized that,
each dav it might
be
mav
quarters,
many
a
there
war
we can
personal calls and telephone calls
-bv 10%
in
that
expect
in
number" of
the
current
unwar-
of the
of
readjustment
irY 10
ground stuff in a way that will be
heJ
tQ
yQu
-n your gpecific
onerations
By analyzing the
nrnfitahle
profitable
the
assume
too many people assume that this
is the sharp postwar decline.
.
^7 al.m
,
been,
decline.
Some Background Stuff
real
Subsud-
.
multiply
we
work
a
business.
ousmess
things that waste time,
that
savp
me
the
Under multiplication, I
for
writing.
acquaintance of his,
an
to
to
occupation.
formula
Every time
whether they want to
not and who don't make
conxriDUUon
contribution
Post¬
was
have
expectations
„—
sure
or
Jim
Since the end
subtraction,
I
suggest com p° dity
A. W. Zelomek
subtracting the unprofitable lines a ^ d industry,
I know of no
that
you
have
been
worrying
about for a long time.
Subtract Sroup that. has to be more realistic
the people
who have not been in its operations.
writing, how many of us
following the simple proce¬
dure
better service.
why
to
seems
.
more
and their imPact on their
particular
new
.
meth-
new
ac-
Everest, and we've never been
higher than Mount; Washington
before. Perhaps this will
help us
to keep the present situation in
perspective.
Under
On the
are
add
-
got
proportions. But remem¬
ber, this is a decline from Mount
general,
a
of
ranted
over-all
salesmen,
new
have
kind
Perhaps this is
decline
knowledge of
world events
of addition,
use
lines, add
ods of giving
in
economics.
on
disturbing
are
new
the
to
add
new
warehouses,
handling facilities, add
the daily business sections of the
numbers of
economists, commentators, col¬ newspapers. It is more important
umnists, and many others writing, to find the names of some new
speaking,
and
T-V-ing
about business that is just opening up
things they know very little about. than it may be to read a column
run
had,
Add
news¬
mentioned
are
of
you
good prospects developing all
are
large
to
like this, when you have to offset
the loss of some of the business
We've
customed to sailing in the clouds,
I know of no
group that has
Under addition, I propose that
the members of your organization
to
history.
agents do.
about each of them.
of
return
writing,
but
to
the ..members
is
ing
little
papers, and magazines that give
suggestions to our business. There
country's
business when
<we
to
talk
I will speak only briefly about
reading—but surely there is a lot
the
days
4iave
I
Association
use
to
arithmetic.
I would like
to
like
formula
recommend
seri¬
business
ous
So I would
falling off of
throughout the country
1
Statistical Bureau, Inc.
current decline to
letter of thanks when he sends in
a
By A. W. ZELOMEK*
Crossing swords with "the prophets of doom," Mr. Zelomek
holds there will be no major depression in our
lifetime, be¬
cause of the
responsibilities imposed upon America as world
letters,
host
af
*
International
thank-you
some
congratulatory
or
Thursday, April 8,1954
...
Of farm
*
to
in
farm
the
income,
lower
level
prjees,-a trend which has*
..
,
Continued
on
page
62
Number 5314
Volume 179
...
(1539)
The Commercial and Financial Chronicle
issues
The 1954 Outlook foi
tended
The Oil Industry
ducer
or
leading association of oil producers maintains
bright future for the oil industry ibis year, but warns
Executive of
a
to
alert eye
an
with considerable stabilization of prices
March
four
1950, just
about
it was my priv¬
President of the Mid-
as
Continent Oil and Gas Association
to
on
appear
der its
and say a
to
words
same
few
this
laid to rest.
subjects only
Of
has been
one
That is the Tidelands
issue which has been
that the states
Shortly thereI
Gas
Act, the importation of crude oil
and products, Tidelands, Congres¬
sional investigations, and attempts
these
group.
,'after
the
Natural
the
of
clarification
to
looking
legislation
resolved
so
again enjoying
are
ownership of the submerged lands
was
Presi-
within their historical boundaries
of
the
while the Federal Government has
American
Pe¬
jurisdiction
elected
d
t
e n
the
troleum Insti¬
Continental Shelf.
I know that some
During
tute.
balance of
the
over
The
people have
by
an
and
the
written
and corporations not en¬
jurisdiction.
says
resulting small
is
truly
examining
the
producer and
likewise
entitled
to
terprise
The
oLdhis hear¬
Then,
able
again,
have found
we
to
Carl
successor
the person of Bill
been particularly
to
the
see
taken
Young
an
in
attacks' by
demagogues
are
throughout the
hearings
been issued as yet. I am
The report of these
land.
has
prove that conten¬
other hand, unjusti¬
not
hopeful
that
it will
portray
the
en¬
amount
,
15%.
Thus
more
called
his assignment.
has
water
much
gone
over
dam in these past four years
the
reduction of the percentage deple¬
Strang. It has
pleasing to me
the
is
industry
factor
in
its
are
and, strange to say, the
just
about
the
same
once
Domestic producers strongly con¬
eco¬
nomic well-being.
the
that
issues
today as they were in March, 1950.
to protect this
upon
of imports
to
27^2%
from
allowance
tion
all-important
Many things have happened and
as
duced in the Senate calling for
in which he has
manner
over
inasmuch
feeling,
tend that they
have been injured
by being forced to cut back their
daily production and feel that im¬
ports
are
to
a
great measure re¬
The Natural Gas Act
sponsible. On the other hand, the
the econ¬
companies
have not
Passing on to the Natural Gas importing
omy of this oil business.
I might Act and the necessity for clarifi¬ seen fit to reduce the volumes
mention, among others, the Ko¬ cation: the Supreme Court of the they bring in. It seems, however,
rean
war, the refinery strike of United States has under review a
that there has been a leveling-off
1952, and the impact of the fast- decision of a lower Federal Court
growing
natural - gas
industry. which set aside a
finding of the
Then, of course, we have passed Federal Power Commission to the
from a sellers' to a buyers' market
effect that after a full and com¬
This announcement is
in that the industry is confronted
plete investigation, the Phillips
over-supply of
have
had
with
oil
crude
cause
bearing
,
on
world-wide
a
There
a
and
refining
facilities.
should
be, however,
no
for alarm. This industry is
noted for its farsighted
leadership
ability to weather storms
and
its
and
emerge
with
a
fair measure
gas
Court
should
that there will
future
Attitude
One thing sure and
certain that
not
too
as
be
may
confronted
with representatives of the Ad¬
ministration roaming around the
be
to
no
the
amended
strongly
so
not
continually
exclusion
into
with a general
resolved, itself
of panel discus¬
number
a
sions. The oil
industry was mostly
the
in
interested
Conference on
the
Future,
Re¬
with
a
meeting scheduled in Washington
last December running for three
or
four days.
After due consid¬
American
the
eration
Institute agreed
Petroleum
to be one of the
with the thought that
might be helpful in keeping
project on an intelligent and
sponsors
we
the
constructive
basis.
It
was
also
the
on
of
verge
I
•
■
can¬
the
im¬
of this subject. As
recall, efforts were made
and
that
con¬
their
here
that
less
things dis¬
cussed were the various problems
then confronting the industry such
as
attacks on percentage deple¬
in
1950.
*An
Among
address
the
over
^Resource
there
was
oil
a
industry and that
large attend¬
very
from educational institutions
government agencies. In view
of this, there yvas a very good
possibility that the forum would
advocate strict government con¬
trol over the country's energy and
other resources. What really hap¬
and
pened, however, was the complete
reversal of this original theme.
This was accomplished to a large
by revising the questions
considered, as well as by
extent
be
to
opposition to such a
presented during the meet¬
ings themselves. Industry partici¬
pants expressed complete confi¬
dence that the energy needs of the
the vigorous
theme
country can be met and that the
to do this are adequate
resources
and
that
tem
can
mum
the free-enterprise sys¬
do the job with a mini¬
benefit
ference was that is
by Mr. Porter before the
Spring
Meeting of
the Mid-Continent
District, Division of Production, Ameri¬
can
Petrnleum Institute, Oklahoma City,
Okla., March 18, 1954.
availability
mate
:
■
,
•
,
•
..
..
Copies of the Prospectus may be obtainedfrom the
depletion allowance, and the
Continued
;'
should be given a price advantage
to which he was
i
a
reasons
on page
!
Due March 1,
1984
undersigned.
competitive and real¬
HALSEY, STUART & CO. INC.
price for his product or
whether, by bureaucratic fiat, the
consumer
in the North and East
not-entitled. The
bitter one.
The basic
April 7,1954.
for
the
Price 101.93'% and accrued interest
istic
was
petroleum,
of
and
background
Bonds, Series D,3M% due 1984
Dated March 1, 1954
Con¬
the
offer to sell or a, solicitation of an offer to buy these securities•
offering is made only by the Prospectus.
v„y
the
portunities for cross - education.
people, in
particular,
gave a great many discussions on
such
matters
as
the difference
between crude reserves and ulti¬
all, was to determine whether the
producer of a raw commodity is
fight
of
presented op¬
Industry
entered into this fight which, after
a
help.
of government
"Another
not an
The
Energy
Problems session repre-
the
tented
possible to secure the services of
the Honorable Lewis W. Douglas
First Mortgage
and gathering from any pos¬
entitled to
the
attendants " at
listed
resources
I might note
than 10% of .the
ground.
the
ance
of
withdrawal
the
on
from
over
and by restrictions
end-use
Community Public Service Company
in sibility of being involved under
general and the oil business in the Act. The last attempt was in
particular. The presidential elec¬ 1950 when the so-called Kerr Bill
tions o£4952 were, of course, the passed the House and Senate and
outstanding) event of the period then, due to the pressure exerted
we
are
talking about. It is my upon him, President Truman ve¬
sincere hope that the country will toed the bill.
give the present incumbent a fair
Time does not permit a detailed
opportunity to carry out his pro¬ statement of the many factors that
to
review the talk that I made here
depleting many
resources
to be
these needed
you
stress
called
carefully
served by stringent control
natural
of its
country, attacking all business
gram.
•, It has been interesting to me
'panel
'Energy Resource Problems.'
$3,000,000
y:
to
then
of
past six or seven years to se¬
cure
legislation freeing produc¬
tion
for
sources
"
question in
the
are
Mid-Century
Natural
the
portance
has been for the better is that we
and
natural-
production and gathering.
A New Political
opened
way
decide,
may
Act
Gas
a
ference
meeting
under' the Act.
the Supreme
company
Whichever
the
\
of stability.
Co. was not
Petroleum
days
resources
sumed that the United States was
to
a leum
attempts
at legislation
that
reserves.
The decisions of to
these prob¬ the Federal Power Commission would bring about the end-use
since then,
lems are raised year after year
and the Courts which would sub¬ control of fuels. Professional plan¬
and nothing happens to affect the
which I might
ject production and gathering of ners and would-be administrators,industry adversely, that perhaps
say I have
natural gas and the price received using the fallacious argument that
Frank M. Porter
we become unnecessarily alarmed
personally enby the producer, to control by the we are fast becoming a have-hot
when we urge continued aware¬
joyed very
Commission are contrary to the nation with respect to natural re¬
much, I have had the opportunity ness. So, let me say to you that intent of
constantly
advocate
a
Congress and are pre¬ sources,
to
attend
a
number of district it is only through eternal vigi¬
venting the movement to consum¬ governmental bureau or agency
meetings of the Production Divi¬ lance and unceasing efforts on the
that will tell the American people
ers
of vast quantities of natural
sion in all parts of the country. part of many friends, associations,
gas under competitive conditions. what type of fuel they shall use,
These meetings
have grown: in and individuals that we have been
A sound national policy was in¬ in what quantities, and for what
size and interest due, of course, to able to retain those things and
tended to be established by Con¬ purpose.
expanding activities and the in¬ those freedoms which have made
Not only do we have this to con¬
gress in this regard in the Natu¬
creasing support of members but, this industry great.
ral Gas Act of 1938, by exempting tend with from some in govern¬
beyond that, to the leadership
Percentage depletion, which we
that has been displayed by the all agree is the foundation stone production and gathering of natu¬ ment, but there appear to be out^
ral gas from such control. It is in side influences also at work.
Il¬
various Vice-Presidents of the Di¬
upon which rests the entire econ¬
the public interest, both of pro¬ lustrative of this, about a year ago
vision.
Jack Pew, now in that
omy of the production end of the
ducers and consumers, that such there came into being in Washing¬
capacity, is another outstanding business has only been kept in its
control or threat of control by the ton
a
nonprofit corporation fi¬
example of the men who have present form by the activities, of
Commission be removed by Con¬ nanced by the Ford Foundation
given freely of their time and en¬ those
groups
and > individuals
known as Resources for the Fu¬
ergy in building up and improv¬ from
this
and' other producing gress."
ture, Inc. Various companies and
ing this particular activity. You states who time and time again
The Question of Oil Imports ,
associations
were
invited to
be
should be, and I am sure that you have rallied valiantly to the cause.
Then we come to the question sponsors of what was termed a
are, most grateful for their efforts.
This year bills have been intro-'
interval
the
natural
the
of the newspapers
fied
gatherer, is
equally free
competitive
our
system.
resources
position of the United States today
and its future prospects. The Con¬
industry in.a better light than was
of indicated during the hearings.
energy contained in our available
End-Use Control of Fuels
natural gas reserves is comparable f
There never seems to be an end
in quantity with all other petro¬
markets under
of
three
always spread over the front pages
and
On the
tion.
part
involving
the same investment
hazards and risks, and in the harids
of
aspects
devoted
The
original background material pre¬
pared for the discussions by the
staff and by the Brookings Insti¬
tution was very much on the pes¬
simistic side. " It was generally as¬
tified
in part: "that natural
and parcel of
petroleum, is found by the same
development methods as for oil,
gas
two
meeting ap¬
1,700 so-called ex¬
the technical, economic,
social
and
Interesting in this regard is a- In other words, it apparently did
statement
by the
National Oil not constitute news for us to con¬
Policy
Committee of the API tend that these advances were jus¬
which
or
December
problems
price of gasoline.
record
the
perts on
increase
15, 1953, in the price of
oil
paragraph
a
report by the API repre¬
a
"At
ing is not too bad from an indus¬
try standpoint, but unfortunately
the attendant publicity followed
the Washington pattern of attack.
gaged in interstate commerce un¬
at the end-use control of fuels.
program
your
tion,
June
advailce in the
regulating commerce
substance
re¬
quote
proximately
comparable
hearings
experience
on
the states, thus bringing
persons
we can still ex¬
have them periodically,
hope that we shan't again
to those occasioned
edict;
tional role of
Concludes petroleum industry "is still a*
cow."
ago,
years
ilege
30,
it properly
placed
...jyhere
crude
between
darn healthy
On
but I do
(3) Should the Federal Gov¬
ernment
depart from its tradi¬
petroleum industry, however, to beware of a continuous oversupply of its markets, unless it is willing to face an ultimate
period of adjustment.
pect do
and
Cautions
%d market.
states
to Congressional inves¬
as
the actions and
sentative who participated in the
deliberations:
tigations, I think
left
be
belongs, or should it be
elsewhere
by government
be kept on arising problems. Looks for a
high level of exploration and development by oil producers,
that
the
resource
in
pub¬
a
sults of the Conference is to
fair solution of this
problem without legis¬
a
from
Now
as
believe the best way
I
summarize
to
by all parties concerned to
complex
the
valiiable natural
lic service.
lation.
it being accepted
instance is
Should
a
bring about
question that gas in this
a raw commodity;
(2)
conservation of this
without
Institute
to head the Conference
rate.
Surely there
genuine effort put
daily
been
forth
maximum
the
commodity while
owner,
1
there is
raw
it is still in the hands of the pro¬
By FRANK M. PORTER*
President, American Petroleum
a
the
has
Government be ex¬
control
to
price of
in
(1) Should the power
were:
of the Federal
11
35
12
(1540)
in
A Record of
Activitjrfor U. S.
Canadian
is
about
prices, reviews factors which affect bond
prices in Canada.
Ascribes premium on Canadian dollar to
-
The
bond
market
of
1954
will
long be remembered by investors
speculators alike. Seldom in
a
period of so few months have
and
such
hand¬
profits
some
accrued
to
holders
high
grade
-
early
the
market with
millions
terest
down
has
J.
Ross
Oborne'
ante operation by
Fortunate have been
those who, in the last six months,
have invested rather than specu¬
in¬
money
forced
continuing to be
deliberately
are
of writ¬
ing in the hope that the trend of
and
penny
comparison.
borrowed
on
unemployment
look
a
and
Consequently
forced down at the time
made the stock
like
rates
been
then
the
basic
itself
be slowed up
A change in
can
reversed.
interest
all
line.
the
down
reflects
rates
Banks
lower the rate
they charge to bor¬
row money, mortgages bear lower
of
lated, for bonds have in effect rates
interest,
Government,
been the best "speculation" of all. State and Corporation bonds carry
On Dec. 31, 1953, Canada 3% lower coupons.
In terms of the
bonds
due
Sept. 1, 1966, were bond market "yields" on securi¬
become
lower
selling at $93% to yield 3.61%. ties
and. prices
At the time of writing they are higher.
It works this way: if a
selling at $97% to yield 3.21%. long-term U. S. Treasury bond
Similarly Canada 3%% of Jan. 15, bears a 3!4% coupon, then at a
1978. have risen from $100% to price of $100.00 the
yield is 2Va%.
If the basic interest rate changes
$103%.
-
Short-term bonds, too, have had
their run. Canada 3% due 1956
have risen a point and the 3% due
May
1,
1958,
average
not
may
two points.
To
the
investor, these increases
appear large, but when
the volume of transactions is con¬
sidered
the
profits
have
been
phenomenal. To
ample,
use
further
a
if an investor
$25,000 of the
chased
had
ex¬
that the U. S. Government
so
sell the
with
an
type of bond at $100
interest rate of onlv 2%%,
this changed rate then reflects it¬
price of the presently
outstanding 3%% bond. Thus we
3%%
bond
sells to
yield 2.75% and the bond rises in
price from $100 to $110.
This is the
pur¬
Canadian
been
happening in Canada
June
of
them
at
points
of
Railway
$102%,.
profit
a
$812.50.
or
$25,000
An
of
3%
investment
like
big one,
but keep in mind the
security is
of the highest grade,
being guar¬
anteed
by the Government of
Canada
able to
posit
and
a
thus
bank
with
would
and
seems
have
thus
quite
bank
effect
A de¬
$1,250.00
the
$25,000
profit
a
66 %.
over
U. S. Policy the Key
The
big
change
market
really
June
1953
that
of
time
abandoned
policy. In
cided
in
the
started
in
the
the
U.
their
S.
became
lower.
the
higher
As
reverse
and
thus
previously
trend has
prices
mentioned
caused
now
bond
back
U.
S.
A.
in
At
Government,
"hard
other words,
that it would be
money"
they de¬
better for
•Reprinted by permission from "Sat¬
Night," Canadian Weekly Maga¬
zine, April 3, 1954.
urday
to
U.
S.
Our Canadian bond market, for¬
tunately
or
unfortunately,
is
closely allied to the U. S. bond
market. If yields
chgnge in their
market, they change in our mar¬
ket too, but not necessarily to the
same degree.
They change in our
market
money
because
when
higher
interest
than
can
it
Canada
It
purposes.
market
our
much
so
to
comes
vestment
in
it
the
for
U.
S.
in¬
to
comes
can
rate
U.
for
S.
obtain
its
a
use
market.
Through the recent period of low¬
er
yields, millions of dollars of
U.
S.
money
have been
let's
invested
Specializing in Bonds of
Orders
Executed in
or
Railway
Canadian Dollars)
Canadian
Stocks
and
Bonds
all
this
Tel:
I
*
DIgby 4-3870
Wires
to:
37 Wall Street, New York 5
Toronto
* "
Montreal :#i Ottawa
TWX: NY 1-1467
" •
Winnipeg
—
tions
of
the
incalculable
growth
of
of
large
eco-
this
response
represented
by ownership of in¬
policies and interest in
the
funds,
savings
of
surance
magni-, pension
aggrega¬
many
in
-
power,
American
The
omy.
avail¬
millions
more
the
culiarly
American
money saved
ovgr^the U; S. dollar. The pre¬
mium, like everything else, is due
to the simple laws of
supply and
lic to find
wealth for in¬
in business
vestment,
the
demand.
struggle
of
by
It
two
is
is
affected
main
basically
factors.
The
trade balance.
our
imports
deal
from the U. S. than she
more
This
ports.
results
in
of
ex¬
deficit
a
dollars
leaving Canada than
tering it.
lar
If the value of
affected
was
is
not
at
other
alone,
discount.
a
discount
a
main
dol¬
our
by trade
then it would be at
because
factor
It
the
than
more
counter-balances the trade deficit.
This other factor is the large
inflow of investment money from
the U. S. Such investment is made
principally of U. S. money
buying our presently outstanding
up
bonds
well
as
as
issues
new
of
provincial, municipal and
ration bonds which
U.
ample
is
U.
S.
A recent
ex¬
issue
an
Ontario
corpo¬
sold in the
are
S. market alone.
of $50 million
sold; only in the
bonds
A. because
lower
a
rate
of
intent could be obtained in their
market.
Thus to
sum
deal
more
into
Canada
have
up we
U.
S.
a
great
coming
going out.
money
than
is
Hence the premium on our dollar
is created by a greater demand
than
there is
a
of weapons
supply.
tion.
Adverse Effects of Premium
as
premium
on
our
dollar
makes
more
expensive for other coun¬
tries to buy our goods. In
particu¬
lar
our
textijle and base metal in¬
dustries have
fected.
have
been
The
been
adversely af¬
textile
hard
companies
by foreign
hit
imports.
us
handled.
At the risk of
we
can
ment of counter forces
over¬
say
mean.
the
development of
aggregations of economic
represented in
tions.
giant
our
large
power
corpora¬
Counter forces operating to
that power are competi¬
control
tion
rival
of
collective
businesses
bargaining
the
and
of
power
labor unions.
The legal controls
operating to control the power are
the
anti-trust
management
the
laws,
the
relation
securities
labor
laws,
laws.
and
Sometimes
there have been attempts at vol¬
untary self-imposed controls such
the
cartels
NRA
lived
of
codes
and
Europe;.or
under
the
short¬
unconstitutional
Na¬
struggle of, the great powers. On
one
hand, we set up counter
the
force s,.
rearmament, EDC, the
winning of the atom race. On the
other
hand, we attempt controls,
League of Nations, the Naval
the
the
advantage of the dollar premium.
The
base
export
metal
get
companies
who
high percentage of their
a
Disarmament Treaty
Nations.
of 1922, the
The wisdom with which
method
a
methods
of
we
combination
or
of
responding to these
of our time de¬
great challenges
are
.
sidered.
petition by a system of privately
imposed controls
cartels
with
are
price
Paper companies, who in
the main rely
entirely on export,
also feeling the effects of the
premium.
All
Canadian companies who
export their goods suffer in com¬
petition with companies in other
countries
producing
the
same
seen
in
foreign
;coupled
of
with
living,
higher
standard
basic
our
those
costs
required
same
goods
in
to
for¬
A
problem
the premium
dollar
port
were
then
for
Canada
a
companies
dollar.
discount,
If
is
our
low
Continued
be
page
53
an
triumph
concept
inexcusably
naive
that
good will always
is
evil.
over
Legal
Controls
inherent
Essential
in
the
nature
things that there must be
legal
controls
imposed
on
who
man
administers
others.
It
is
in
of
of
some
one
gathers together and
capital furnished by
That is true of trust funds.
its
true
of
own
bank
corporate
are
tures
of the
deposits
it
way
tions
must
and
be
true
capital.
Corpora¬
entities, crea¬
They are em¬
artificial
state.
powered to do only what the law
they may do. Their directors
says
have
duties both
as
and
prudence.
Their
to
good faith
property
must be handled with due
regard
the
rights of creditors and
stockholders.
cepts
These
system
involves
the
tailed
general
con¬
incontrovertible, but
are
effective
of
an
legal controls
development of de¬
rules
and
effective
tech¬
niques to insure compliance.
When
of
we
the
look
at
modern
the
function
corporation
in
gathering and administering capi¬
tal, what ends do
abuses do
(1)
We
we
want
desire? What
we
seek
to
to
prevent?
in¬
encourage
vestment—money in the mattress,
jewelry
in
a
vault
static
are
wealth.
(2) We want no foolish, mean¬
ingless obstacles to the accumula¬
tion of
capital.
,
(3)
We want opportunity
initiative and imagination to
'
.
for
de¬
velop the full economic potential
of an enterprise.
I
don't
there
that
to
the
let
are
we
need
a
to
tell
you that
number of other things
want also:
•
pri¬
(2)
erated
me
get
announced
remarks.
you
for
enterprise.
Now
This
a
little
closer
subject of
country
has
—
available
public
to
,
(3) Financial information should
for invest¬
be presented to investors with
sonable
completeness
and
bring
accounting principles.
together
the
There
are
savings
some
try.
One
million
consider
the
indirect
of
coun¬
ler
address by
before
the
the
ceived
you
Washington,
D.
Commissioner Demm¬
1954
Controllers
Spring
Institute
C.,
March
Conference
of
22,
remedy against
someone
over
investment
or
rea¬
ac¬
accepted
1
him
by
a
who de¬
misrepresentation
concealment.
(5) A public stockholder should
have
a
chance to vote
America,
1954.
in
(4) The investor should have
seven
corporation has
stockholders.
If
an
current
my
cordance with generally
millions.
of
owners
enterprise are entitled
information.
gen¬
surplus wealth—savings if
will
The
Corporations
have
been
developed as a legal vehicle to
of
on
involves
en¬
such
wages,
our ex¬
then
Any
to
support
vate
*An
would
gathering capital into
(1) The investor should know
develop mass
what he is getting into when he
markets. The result? A
dangerous
buys securities.
lack of popular
a
at
production,
attempts
million stockholders in this
on our
experience; the
beware; businesses
forfeited public confidence
confidence
—
ment.
makes
the
The premium,
high
our
than
because
of
feeble
many recent
countries
the price is lower.
—
fixing,
allocation of mar¬
kets, resistance to efficient meth¬
ods
en¬
bitter
terprise.
se¬
termines the strength of our, na¬
suffer-- tion
and
may
determine1, our
demand, in survival.
part caused by the premium that
Let me illustrate again. In some
the U. S. buyer has to
pay. In this
European nations private busi¬
case lower price for
base metals
ness has met the
and oversupply is also to
pressure of com¬
be con¬
production to the U. S.
ing because of lack of
depend
the. to
tional Industrial Recovery Act.
Take another example — the
lect
markets,
might
could
tion in
It
illustrate what I
me
Take
these
fail; the strong would sur¬
vive; there would be no restric¬
the im¬
or
United
our
by
which
position of legal controls.
Our companies have not
been able to compete with U. S.
companies who, because they are
in
We
—
Let
with
would
that
two methods have been employed
sometimes alternatively, some¬
times concurrently—the develop¬
old
it
Ralph H. Demmler
to
are
do
The members of the pub¬
forward to invest their
buyer
simplification
as
This situation has its drawbacks
far as Canada is concerned. A
Let
industry.
we
press
learn
of
classify, if we may, the
techniques by which such forces
try
and
tirely on an automatic system of
self-adjustment.
Investors could
destruc¬
mass
en¬
of
pressure
by the general pub¬
place for investment
a
do
savings.
world
the
development
Thus, in terms of
have more Canadian
we
pe¬
Canadian
The corporations call for
lic
power,
trade balance.
trade,
literal
a
a
capital.
great
powers,
the
responsibility
Canada
and
econ¬
is
forces?
the
first
great
a
phenomenon,
What
invested
are
industrial
result of this
surplus
eign countries^
Burns Bros. & Denton, ino.
tude
af¬
a
forces
of
ability, indeed
the rush, of
produce
/
is
history
history of
Canada and why our dollar
should be selling at a premium
ed
(Payable in United States
how
see
on
administer capital furnished
provided by the statutes it administers.
as
economic
nation
to
our
examples here of contracts award¬
Canadian National
The
here
on
legal controls
fects
goods. We have
:
premium
for
Lists ten major functions of Securities and Ex¬
change Commission,
selling
these bonds to sell at $97%.
Canadian Market Tied
who gather together and
enterprise.
pe¬
nomic
Now
to
up
the
the need
Says objectives are: (1) to encourage investment;
(2) to avoid meaningless obstacles to capital accumulation,
and (3) to furnish
opportunity to develop full potential of an
about
attracted
Demmler stresses
by others.
dollar.
all
remember,
for example, buying Dominion of
Canada 3% due Sept. 1, 1966, in
1945
at
$100 and subsequently
seeing them hit a low price of
about $93 in the first half of 1953.
They went down because yields
of
$812.50 would have resulted from
the investment of
$1,250.00, a gain
of
We
of
carried
in
accept¬
collateral.
as
a
a
1953.
been
During the
been
with
even
of what had
reverse
3%% Feb. 1,
1974, at the issue price of $99% a
few months ago, he could now sell
National
can
same
that the
has
1%.
has
money
self in the
find
those
quarters of 1%. Small wonder that
presently
have
about
At the present
time the difference is about three-
one
continued.
investment, Com¬
missioner
time to 1%.
rise in June of 1953 and this trend
ernment, pro¬
vincial, m u nicipal
and
c orporation
market
people
more
of
*
^
After pointing out economic power in the
growth of aggrega¬
tions of capital and the need for avenues of
months, this spread widened
one
has
of
dollars of gov¬
bonds
goods will be purchased
the
kept at
Keeping people at work is
the key to the situation.
Unem¬
ployment figures had started to
daily turnover
of
people will
work.
a
of
money
more
and
1954
bonds
few
and more dollars
be put in circulation.
The
dollars there are available,
more
securities. The
and
ple to borrow money. The theory,
course,
is that if the price
charged for the hire of money is
will
of
investor
S.
yield
give"&
Canada
of
borrow
U.
a
riod of changing rates in the last
the economy if it cost less for peo¬
more
to
one-half
at
reasonable then
,
Traditionally the difference in
yield between long-term U. S.
Treasury
bonds
and
long-term
-
Says premium creates a problem for Canada, since it makes
Canadian securities less attractive to Americans.
Looks for
Provincial
A
.
Chairman, Securities and Exchange Commission
3.30%. "
coming into Canada than is going out."
however, in Dominion,
Corporation bonds.
-
premium on
can buy
Dominion u of Canada
long-term
bonds
and rise in bond
price rises,
2.95%.
By RALPH H. DEMMLER*
-
dollar of about 3%%
our
banker, in pointing out increased activity
For
average of
on
after paying
even
further
dollar.
example,
the high¬
grade U. S. Corporation bonds
est
By J. ROSS OBORNE*
money
high-grade securities. This
our
the return
Nesbitt, Thomson & Company, Ltd., Montreal, Canada
"more U. S.
Thursday, April 8, 1954
has taken place even though there
has been a stiff premium on our
And Canadian Bond Market
Canadian investment
The Commercial and Financial Chronicle...
/>
H-
Continued
intelligently
on
page 6&
Volume 179
Number 5314... The Commercial and Financial Chronicle
From
Ahead
Uptrend in Common Stock
Common Stocks for
Washington
Prices
For
has
Tmst and Pension Funds
of the News
the
of the
one
serious
most
fall.
or
which,
The
sin
omission
will
not
problems
facing
plain facts
that the
are
favorable uptrend in their prices.
ment of trust and pension funds7
Their
good
a
section of
cross
Reveals increase in invest¬
holdings of
urges
is
Perhaps the most significant de¬
velopment in the management of
trust funds and pension funds in
the postwar period is the increase
It
is
further fact
a
that
to out-do the New Deal in
much of
it
utilization
well without
tries
of it except the tax
any
a
into
run
of
ligations
dollars for
pleasant
this
trend.
lude
stocks
have
fewer
produced
their
That
owners.
is
been
(and
hard
of
Because
moneys last
of
year.
added in funds
that
less
be
included them
and
in
even
that
event
plenty
of
pork
work
or
taking
backward step if the President's social security and
As to his housing
proposals it would seem about time, in a private enterprise econ¬
a
health insurance proposals are not acted upon.
in
had
not
their
vestment pro¬
omy, for the builders to reassume the risks of their trade and
not continue to depend upon government guarantees.
Apparently,
from the treatment housing legislation has already received in the
grams.
House, there is
Increase
in
makers.
common
stocks
The President's program was largely worked out
by the
coterie around the President.
Congressional leaders had
held.
strong feeling along these lines among the law¬
a
to do with its formulation.
small
little
Mr. Eisenhower would
undoubtedly be
surprised and indeed, hurt, to learn that the Congressional leaders
had been ignored.
in
maintaining
how
He has gone further than
Presidents have gotten away from
our
leaders for advice
to what the
as
people
want, what they will stand for.
incumbent to have their
ivory tower thinkers who
It is difficult for the
perform in the
area
ditions
high
to feel
seem
it
by experts and
int<? the picture.
He has to deal with
publicity
has
been
the
Pescatelle
proportion
to
other
of
are
assets
greater
These
only
number of
a
of
use
can
the
are
the
working
bases
investment
creates.
I
con¬
afraid
am
I
♦Remarks
Alumni
of
by
of
Business
20,
is
resulted
has
investment.
of
it
cause
gesture
every
denied
the
me
he
Firestone program,
but
more
most
part,
com¬
the
task
the
search
he
inflation,
against
pro¬
stake
in
common
the
■
done
this
.
for
has
Oil
of
de¬
Motors,
national
a
stocks.
purpose.
And, sometimes he has done this
with impunity.
1954.
rehearsed
re¬
knew
had
peatedly with Bob Montgomery and that
"informally,"
held
was
been
before him in box
up
This advertisement is neither
letters.
car
every listener didn't know this but it has been pretty
Maybe
an
The
word he spoke,
every
NEW
offer to sell
as
du
Pont, Standard
Jersey,
General
New
Electric, Inter¬
Machines, Min¬
neapolis
Honeywell,
Minnesota
Mining and others has acted as an
stimulus
added
ticipation
This
is
in
for
wider
solicitation of offers to buy
offering is made only by the Prospectus.
any
on
page
of these securities.
y :
ISSUE
thoroughly
publicized.
However, the content of the
sitated
message
itself,
largely
was
by high powered publicity, not reality.
I
am
have not the slightest fear of an attack by Russia.
sure
neces¬
AMERICAN TIDELANDS, INC.
that I
Indeed, there
could not be any manufactured fear today were Russia not astride
Eastern
Europe which did not
come
2,000,000 Shares of Common Stock
by any strength of Russia's
\
but from the
afraid
not
am
stupidity of
friendship
of,
our own
allies; I have
our
ting off the flow of U. S. funds to them.
been
lot of
a
about the atomic
drop
may
one
or
or
two
for
on
objection to cut¬
Price
us
so
they
worry
I
have
may
gather additional data.
can
further, I had not wanted
any
and
American Tidelands, Inc., a Delaware corporation, was
better
Presidential
legislation, in Congress.
"programs"
Truman
was
to let
Copies of the Prospectus
alone.
us
of
up
unshackling
The great bulk of Mr.
the
of
agencies and
Republicans
—upon
may
have-nots.
so-called
enterprise
private
which
bureaus
are
is
be obtained from the undersigned
about
They will
wasn't passed.
Crerie & Company
Undoubtedly
on
in
the
a
Electric
lot
of
multiple
accomplishments of which
the
thumb
be
up
Bldg., Houston 2, Texas
Gearhart & Otis, Inc.
Barren Herrick & Co., Inc.
35 Wall
well be proud.
sore
a
Eisenhower's program
going
74
Street, New York 5, N. Y.
or
for Republican
against
fall.
It is what win
Please send
me a
copy
of the Prospectus relating to the offering of 2,000,000 shares of
Congressional candi¬
continually
explaining
why
it
NAME
It won't figure much in the campaign if the people
ADDRESS.
all
are
aren't
should
.
*
,~t
r
working
and
prosperous
it will hurt the
be passed
1
v
or
-
* t
come
Republicans
even
*
r
Trinity Place, New York 6, N. Y.
program of the President's, though
which the Republicans must rise
stick out like
dates.
had
Tax relief, yes, but then additional
That "dynamic" legislative
;
Administrations
may
only in slates in which the undersigned may legally distribute it.
What I had looked for the Republicans mostly to do
us.
is,net of the unfettering kind.
syruping
February 10, 1954 for
or
I had assumed there
which
and
on
in the continental shelf off the coasts of Louisiana and Texas.
legislation to untangle the knots with
Roosevelt
organized
principal purpose of drilling oil and gas wells for others on a contract basis
Republican
a
would have to be corrective
the
$1.00 Per Share
scientists in their zeal
our
the
more
and better
strangled
(Par Value 10c Per Share)
the
Undoubtedly there has
nights. Any
the H-bomb is that
tBut not to wander
more
no
losing
data fiends.
are
Administration
for
about
whoopla about "McCarthyism" but I'simply can't be¬
lieve it is keeping people awake at
They
And Heaven knows I
the slightest bit worried
or
the esteem of
or
leaders.
a
next
lot.
November.
No real
presented, either.
reason
,
*
i
"
•
If
they
why it
....
.TELEPHONE
par¬
equities generally.
in part in the
reflected
Continued
•
nor a
of
Business
He has done this with confidence.
of the
Adminis¬
ex¬
record
General
a
i
>
price
stocks
the safety inherent in bonds
a
market
such
willing to sacrifice to
has
The
investment.
of
cellent
for
be¬
I
made
in¬
established
For
well
couldn't fully appreciate the President's speech of Monday night,
first because
in
in this type of
us¬
the
gree
on
tration, New York University, New York,
March
In
V
at
and medical
plans.
good performance of com¬
stocks
protection with the need for media
for
Pescatello
Mr.
School
with
been
Home-Coming Conference
Graduate
manager
tection
stocks.
common
investment
confronted
income.
manager
continue to focus attention
The
mon
stocks
and
an
which
benefits and pension
panies with
a
long
record
of
earnings and dividends have come
to
be
recognized as permanent
of balancing his desire for safety
interesting background
for the change but also because
they
pur¬
investment.
ually
are
because
provide
a
hospital
insurance,
creased confidence
The
stocks.
common
have
now
accuring
to
most of
the
working forces.
Some of these
are social security, unemployment
the
reasons
important not
they explain and
reasons
dollars
more
"spendable"
be¬
of fringe and other benefits
cause
chasing power of about one-half
the original ones that went into
responsible for the
are
those
,
Spendable income is greater and
than
but
»
There
that
Michael
an
He
come
the rest of the government, to
or
of reality anymore.
powered
these
upon
to get into the White House.
manage
President,
some¬
thinking, what they
are
program, fashioned
own
But
depending
The Presidents
High powered public relations have also
which
recent President
any
close association with these leaders.
a
Sec¬
ondly, there
now
perhaps
they could before the
onslaught of inflation. Probably
as
good an example as any are
the
U.
S.
Government
Savings
bonds which were bought some
10
years
ago.
The principal is
being paid back now at maturity,
in¬
ex¬
amount to $71.78.
This compares with an average of
$20.15 a week earned in 1939.
ample,
the
projects have already been authorized and only
the appropriations would be needed. Certainly the country won't
barrel
tinkering
is
Average weekly earnings, for
sharp,
unpleasant) inter¬
steady erosion of
purchasing power, the dollars that
are
being earned can buy much
Government
in
of national income, bene¬
fiting to a very significant extent
the great masses of people.
So
with the greater number of con¬
sumers of all types, there has also
been a materially larger flow'of
funds into the hands of buyers.
for
have
is
This
trend.
bution
deter¬
a
growth
grow¬
States
Coupled with population
growth is the widespread distri¬
still going on after a short,
from
First,
is
been
in¬
years.
strong
a
conviction has
strong
power¬
a
influences
family formation has been con¬
siderably greater in the postwar
in two ways.
With the decline
in money rates, fixed income ob¬
resulted
Rather, this is the case unless
unemployment situation which demands Federal
an
15
the
record
a
fortified by the fact that popula¬
tion has increased
steadily and
protection. The
vicious spiral of inflation has hurt
important
changes have
re¬
been
There
effort
stocks." Two
Carlisle Bargeron
ductions and the appropriation bills.
we
mined
common
hand-outs, and still
has
which
ing that the United
influencing investment
management.
in interest and
another fact is that the country can get along
very
Inflation
force
force
The
stocks,
common
stock distribution in
common
Warns, however, of a false sense of security, and
careful selection in acquiring stocks for trust and
pension plans.
them
program
years, or
Such
years.
vestors, professional or otherwise.
It creates a good atmosphere.
resulting
a
these funds.
impossibility that could never pass
Congress under either a Democratic or Re¬
publican Administration in any one session
unless it happened to be an emergency or
crisis period such as confronted Roosevelt in
1933. There are some 200 pieces to it.
over
century,
price performance is
ful
...
The
back
a
growing confidence in this class of securities and
and lists
utter
an
half
of
eight postwar
of
.
forget it.
stocks. This
goes
common stock investment as a hedge against infla¬
tion, investment analyst of prominent New York bank notes
loss of the program in itself. But the fact that
the President called it "dynamic" and said
the party must stand or fall on it will tend to
hurt Republican candidates everywhere.
Democratic
opponents will never let
one
there
in
uptrend
common
whether
years,
Stressing
Repub¬
the
be
period
time,
favorable
a
prices of
so
long
a
past several
he put it, the Republican Party must stand
as
of
been
is
Investment Advisory Officer, First National Bank of New York
lican Congressional candidates this year will be Congress' failure
to have passed any appreciable part of the President s "dynamic"
program on
quite
a
By MICHAEL PESCATELLO*
By CARLISLE BARGERON,
Probably
13
(1541)
Common Stock of American Tidelands, Inc.
4
14
The Commercial and Financial Chronicle...
(1542)
will manage
ernment
Evils of Iiredeemable Currency
when
and
honest requirement
be redeemable to
citizen
in
Standard
Gold
The
Asserting majority of Americans want
the
gold standard is
and
manufacturer
a
good
League
irredeemable currency, and
Says bad money
does not mean good times, and superabundance of credit at
low interest does not necessarily improve business. Contends,
because of irredeemable currency, people have lost power
between
lives
of
good
currency
Americans, I
am
fore,
the
and
You
that the gold standard
way to attain it.
because you are entitled
to know the background of this
witness I should tell you that in
Only
myself
qualified to
fort
ef¬
to
bring
evils
which
threat¬
a
re¬
cur¬
o1d
g
deemable
Senator Mr. Flanders and also ex-
use
President Hoover, as well as our
present
Secretary
of " Defense
for
rency
American
by
Philip M. McKenna
Americans who
fifty years of my life, man and
boy, I've rubbed elbows with peo¬
ple all over this great country.
address
country abounds.
I have had the
exneriences of observing and par¬
had
standard had been
ticipating in the human action of
of
daily lives. Bet¬
I believe, than foreign econ¬
omists
who
write
interesting
the
fixed weight
a
pointed out that the
necessary
for the lone
I
and their backers
standard.
the gold
was
I illustrated that
March
.
be
own
that wittingly or
March 6, 1933 the
aware
on
turned back to the bad
centuries or more ago
dictatorships main¬
two
when kings or
tained that it
their exclusive
was
prerogative to seize the money of
the people and to re-issue coins
of less value or sometimes only
paper
whims
their
as
or
needs
people
of
cause
That is the fully
should have.
the
combined
effect
of
constituted
today's confiscatory taxes coupled
which
with the results of inflation.
gold standard under
prospered for so long a
we
time, and which the enactment of
The Gold Resumption Act of 1954
The
With
things af¬
fected me as a child, a student, a
chemist, a manager of metallur¬
gical works at a very early age,
an
inventor, a tool salesman, a
can
best how
say
founder
of
small
a
business
as
think
a
exclude
men
leads
men
We
it
tends
but
I've
been
laboratories
from
Boston
to
Los
Angeles, in small towns and big
cities. I've been
talking with in¬
vestors, ranchers and bankers. I
write
and
talk
to
our
employees
♦Statement
by
Mr.
McKenna
before
Subcommittee of the Senate Com¬
mittee
ton, D.
on
Money and
Banking, Washing¬
C., March 30, 1954.
situation
in
become
of
aware
the
aware
the
of
discrimi¬
against the American citi¬
in the laws which
deny to us
being able to
advantages
of
have the best kind of
money, uni¬
versally
recognized
gold money
namely
as
money,
while
the
U. S.
Treasury makes good in gold
foreign central bankers, turn¬
to
to
talking with
many people in steel
works, ma¬
chine shops, mines, factories and
the
the
all
Not only can I tell you how the
lack of the gold standard affects
me,
zen
to
paralyze
the will to do good
things.
are
nation
to do wasteful and bad
and
the
paper currency.
country.
That mere
which this bill removes,
things,
public of¬
certainly want to know
We have
this
threat,
for
threat which lies in irredeemable
monkeying with our
standard of value began 21 years
alter the contracts of free
exclude
not
ing gold
<
ness
one
we
over
to
them
day in the week
Troy
ounce.
have
gold
seen
busiat $35 for
any
In the past year
$1 billion in
over
withdrawn
by
foreigners
through their agencies. A billion
dollars is the life savings of
$10,000
each
of
100,000
American
families.
meeting
_
but
Not
that
I
object
to
obligations to foreigners
insist
that
we
should
be
We
are
promises
not
that
impressed
"wise
tent men" appointed
and
by
the
compe¬
by the gov¬
is
in
a
restoration.
have
freely in
be
we
lished
sound
a
in¬
be?
lies
interplay
denial
right of
the
free
upon
are
many
government.
of
is
is
and
..gold
to
Clifton
commodity at any time,
and price he chooses.
It
understanding
my
of
the
that
60-member
only
countries
of the United Nations do not have
kind
some
of
free
gold
market
—the United States and Russia.
The
state
sale of
has
States
years.
Why
permitted
for
the
should
indefinite
an
maintain
the
past seven
a fine,
such
and
a
standard
would aid
and
immediately in proportion
to the advance in the price of gold
day. It took 13 years for the full
inflationary effect of the devalua¬
tion to take place, much too slow
the
needs of
run
seeking
admin¬
an
13 would
that
uct in the market place, without
restriction, for the best price he
get—a right
can
become
by the
farmer, the real estate owner, the
automobile
manufacturer,
the
grain speculator. On this one is¬
alone
sue
does not mean
superabundance
money
a
necessarily
activity
cause
in
business and employment. Under
the money and credit management
that theory for five
had
10
1938
and
million
years we
unemployed
26%
a
decline
sical production in a
one
in
in
phy¬
year pe¬
Only the harsh remedy of
obscured
the
failure
of
that
attempt to manage the credit sys¬
tem
without
spending
redeemable
a
The
rency.
red
only
was
of
ink
The first
prelude
a
to
war.
a
dictator is
smiles to
everyone;
recourse
inflation,
cur¬
deficit
the sacrifice of red blood -in
all
that trick
wears
of
out it
may
be
replaced
by emergencies, real or
fancied
to
provide employment,
notably by rearmament; the final
recourse
let
has been
for' too
war
as
much
ap out¬
power
m
the
government. Rather than permit¬
ting withdrawals from their gold
banks
dictators
have
chosen
draw upon blood banks.
doesn't
power
where.
It
is
And that
from
come
to
enactment
to
lightning.
centration
identical
gathered
sell
the
law
—
S.
of
13
gold mining industry has been
beset with rising costs and a fixed
selling price for its product since
1934.
It should be noted that this
industry
includes
non-ferrous
hundreds
metal
mines
of
whose
contain gold as a by-product
must
often
rely upon the
ores
and
from the sale of such gold
determine the difference be¬
revenue
to
tween
profit and loss.
Domestic
production of gold decreased from
6,033,105 fine ounces in 1940 to
1,893,261
fine
However, there
to
crease
in
to
the
tity
fact
greater
a
metals
quan¬
with
gold is associated in the
which
ores
produced under government
tracts.
As
these
contracts
terminated,
and
with
prices for lead and zinc
vailing,
gold in
domestic
due
was
was
con¬
are
the
now
low
pre¬
production
of
1954 will decline further.
It may
well be that there would
be little or no premium on gold
in
free
a
market
today since the
and
power
is
the
very
processes
credit
of
mone¬
manipulation.
manipulation, generally in-
Continued
on
page
49
a
protect
the
fort^.
will:
of
the
value
insurance,
of
pensions,
Inspire confidence
businessmen
Provide
stronger
a
move
depreciation
life
so
of
Such
and
investors.
leadership, for those
countries whose currencies should
be stabilized.
world
by
forces
of
Strengthen the free
allowing
trade
the
natural
find
to
greater
freedom of expression.
Scores
Managed Currency
a
alternative
to
money
standard
rency.
Should
delegate
to
our
cur¬
continue
we
handful
a
to
paper
managed
or
,
return
a
to
human
of
beings our currency?
Are we
willing to admit that men who
are subjected to the pressures of
changing
political
philosophies
can be objective
enough to man¬
age
our
in the best in¬
economy
terests of the people? I think not.
A free gold market would place
responsibility
more
into
ture
and
the
would
Some
of
the
fu¬
citizens
of
facilitate
this
of
ment
for
hemds
the
attain¬
end.
;
who
those
free market
advocate
oppose
a
return
to
a
gold redemption at $35 an ounce.
It may be that this is the price
at
which
some
will
we
return
market.
I
take
chance
the
by
would
gold at $35
sequent
the
test
market. Such
want
returning
with
gold
our
on
a
not
of
ounce
an
run
without
a
to gold
it should
free gold
But if it is,
day.
be determined first
of
a
a
to
to
con¬
reserves
free
gold
action may cause
serious deflation.
an
Those who oppose both the
and a return to gold
free
premium abroad has all but dis¬
market
appeared in the past year. We of
the West are unwilling to accept
demption, including our Treasury
Department and Federal Reserve,
that
result
most
as
a
probability.
important
of
purpose
dollars
returning
to
a
of
The
of
i
savings,
a
increase
that
other
of
1952.
slight in¬
fine ounces
was
1,964,676
This
1953.
in
ounces
economy,
machinery should be put
delay.
gold is continuation of
our
The
materially in
stronger
a
How will this create
The
well established fact that
a
over
in motion without
is
terms
dangerous bolt of
That dangerous con¬
power
and
It is
the
and
justified.
the
by the sly
Such
the
free
market
is to
provide a testing
ground for the value of gold in
which has been
taken from millions of people aid¬
tary
into
enterprise,
and
own
no¬
together
from millions of citizens, just as
tiny droplets of mist, each de¬
prived of its tiny share of electric¬
ity when coalesced into rain, con¬
tribute
free
—
tb
freedom
aware
of credit at low interest rates does
war
enjoyed
developing
quick shot in
a
also
good times, that
riod.
gold
Higher Costs of Mining
have
bad
not
the
to
restore
producer his right to sell his prod¬
arm.
We
as
S.
treated.
so
to
is: A free gold market
return
to
the
gold-coin
dollar
prices
advanced
a more
are
security
issue then
the
natural
of
we
national
ultimately win the battle
tyranny of Communism.
the
Check
advance
sale
gold and gold in
between
drawn
the
period if
our
ing, and should be
not
be
in
in Korea a new phil¬
osophy has pervaded almost every
segment of governmental policy:
We must keep this nation
strong
economically and militarily for
ministration
did
their
of
far more important reason
returning to gold today. Since
and
gold in its natural
been
United
policies
But I feel that there
the conflict
his
two
monetary
a
for
Young
hold and
place
best
compelling rea¬
why a return to gold re¬
demption protects the integrity
of the
dollar and
gives to the
people more power over the fiscal
sup¬
producer
that
is
of market forces
the dollar is the
port
the
in¬
violable right
the
estab¬
sons
sell
I
first
procedure for de¬
belief
and
There
to
and
gold.
equitable
an
method to follow.
citizen and
own
My
gold
the individual
producer
can
return
termining what that price should
glaring
of the
How
will
we
redemption at
until we have
price
most
the
that
the
and
interchanged
20 years.
over
sure
fraction
in
Gold
not
to gold
very
instances.
The
its
dollar
economy?
ed
equally fair to Americans.
principle
to
stage of processing? Gold is gold
regardless of its state of process¬
upon
in
are
this
de¬
private
In the
generally could not conceive
that such violence to principles of
honesty could have been contem¬
plated by serious men in any ad¬
who
ac¬
regard to the gold standard issue,
can say the
following.
malevolent
over
do
and
we
by my
rally when the mischievous if not
threatens
We
Summarizing
Therefore,
indignation natu¬
and
Stand¬
what their neighbors are. thinking.
be made.
altered
societies
candidates
fice who
somebody has been tamper¬
ing with the little balance weights
by which decisions regarding tons
It
I
ffom our
to everybody who will listen and
give a helping hand. We do not
find
ago.
Gold
1948
public of¬
discussions. We talk
fice
the
come
various
quaintances.
value of the promises
by. Nothing makes an
analytical chemist madder than to
I
the
Americans who
live
must
to
and
Rawhide, Nevada. I know
how and why I did things, taking
risks,
working
and
persuading
others to join in good-efforts.
I
ore
of
in
League then formed to make
known to people the principles of
monetary economics. Members of
the League talk to civic groups
near
of
head
that
ard
at Latrobe, Penna., and at Bed¬
ford, Penna., and 100 at our mine
men
unnatural
became
proprietor with 12 employees in
1938, now employing 1,300 persons
know
it
of
practiced
of
of
property.
States
all but
few
tenets
right
line
istration
that
ownership
United
basic
the
of
for short
Standard League
explanation of this
witness' background you will not
will re-establish.
I
Gold
~
the
is
sanction
American
The
behavior
we
of
nebulous
dictated.
,
One
mocracy
sell
6, 1933
by the in 1933 and 1934. The newsboy
mainly from observations
of people in alien history of various inventors. It is who offered you a paper Jan. 30,
extremely difficult today to estab¬ 1934 bearing the headlines "Dol¬
lands, I can interpret the works,
lish a new business or to expand
lar Devalued to 59.6 Cents" did
hopes, fears and aspirations of
activities of an established busi¬
not expect you to pay 5 cents in¬
Americans and how that fits in
ness into new fields.
That .is be¬ stead of 3
with the kind of currency system
cents for the paper that
credit,
of
Congressman, scoring restriction on a free gold mar¬
ket, points out need for higher gold price to offset rising mining
costs.
Says it would be dangerous to return to redeemable
currency with geld at $35 per ounce, and advocates ascertain¬
ing the gold market conditions to set a proper price.
own,
...»
.
was
days
best
and determined actions of invent¬
ors
of money and
theories
on
gold.
freedom
ter,
books
that
me
v..i
are
clock
technical
convinced
4
i
We
society.
My
subject was "Economics and the
Engineer." I pointed out the ur¬
gent need for a fixed standard of
value. I told them that my studies
bing minds with men of character
and knowledge with which our
our
that
Vv
unwittingly
that annual
leading
gave
before
American
privilege of rub¬
And I've had the
Americans in
all-wisej in their
men,
on
«,,,
Charles E. Wilson had been among
For
citizens.
should
what
money
"The Clock Turned Back"
ciety of
Mechanical Engineers,
In
previous years
your
fellow
lack of
of the
few
So¬
American
before the
Lecture
because
us
en
better
with
say
conceits,
would
pit
their
few
1953 I was accorded the double
opinions as wiser.
Often those
honor
of
being
awarded,, the opinions would be prejudiced by
Holley Medal for useful inven¬ their official position.
tions,' and of giving the Towne
atten-
t i o n.
know
who
many
independent men with
enough intelligence to have earn¬
ed the value against whom those
good
a
was
Those
than the per¬
sons who earned it.
Especially is
it presumptuous to oppose the col¬
lective result of the judgment of
thought
why I
e r
to your
done
public opinion poll showing
that the majority of Americans
wanted
a
better
dollar
and
may
this
to
re¬
a
cent
should consid-
make
results of
of the
;;
Western
that
abuse
intend to
not
that the
people are perverse and would
draw out gold when they should
not, and fail to draw it out when
they should, are setting them¬
selves up as persons who presume
the
surprised at
much
not
disclosure
here to
U. S. Congressman from Nevada
-
us
power.
I was, there¬
and to their union.
testify in favor of Senator Bridges'
bill.
'
wonder
currency.
nation's purse.
Because of the vital connection
do
will be the first to agree
that they do not need it,
while
only those who actually
contemplate debauching the cur¬
rency would struggle to keep that
American citizens in denying them
over
*
„
power
with
a
By HON. CLIFTON YOUNG*
that
sure
are
we
power
who
to get it, prominent metal
scores
discrimination against
substituting concept of managed
in the future
ounce
will be abused. it
generally has been abused in the
past when people gave up that
elementary protection.
Officials
way
inventor
an
such
better dollar and hold
a
dollar as l/35th
Either now,
of gold.
of
or
President,
of
standard
our
value defining the
By PIIILIP M. McKENNA*
Currency System Destroys
Right to Private Property
currency
the
President, Kennametal Inc., Latrobe, Pa.
Our
unrestrained by the
simple
1
May Overwhelm Us
money
our
better
that
Thursday, April 8,1954
a
preparatory
to
stand¬
gold-coin
say
that gold should not be held
by individuals
This
is
market
I
is
believe, that
an
♦Statement by
fore
the
Banking
essential
and
H
of
Currency
C
free
prior
step
Congressman Young be-
Subcommittee
Wackinirtnn
a
March
Committee
of
SO-
the
on
Senate,
1954-.
as a
fantastic
a
store of
notion
y^lue.
to
be
circulating in the free world to¬
Our
day.
ing
us
Soviet
ard, nand
re¬
own
the
agencies
thing
are
tell¬
that
same
Government
tells
its
the
citi¬
A most unusual paradox —
leader of the free world and
zens.
the
the
leader
agreeing
on
of
the
such
slave
an
world
important
Continued or\ page
50
Volume 179
Number 5314
...
The Commercial and Financial Chronicle
(1543)
R A ILWAY
C DM PAN Y
Gross
million,
or
3
for the
revenues
from this
revenues
The
year
following graph shows percentagewise the
1940 in expanding traffic revenues from
commodities:
coal shipments
Traffic other than coal held up well,
exceeding the record high of 1952., '/ *...
source
1953
F C R
declined approximately $6
cent, under 1952, mainly because export
per
off about three million tons.
were
with
operating
REP O RT
A N N U A L
O F
SUM M A R Y
*
■
made since
progress
manufactures and miscellaneous
:•
,
PERCENTAGE
INCREASE
IN
REVENUES
betterments
$22,557,000,
total of $32,352,000.
a
capital expenditures for improvements,
have amounted to
of 1954 totaled
$203,825,000, all of which
were
approximately $13,660,000.
New equipment
box
modernization
1945,
gross
and equipment
made without borrowing
Authorized capital expenditures uncompleted at the beginning
money.
'
Since
cars
;
.
for delivery in 1954 consists of 581 gondola
and 25 flat
cars,
500
Development of two types of coal-burning
cars.
turbine electric locomotives is progressing.
The
Company achieved outstanding efficiency records during the
In gross ton miles per train hour
of 71,991 was
among
reached.
a
Taxes amounted to $1,780 for
and 20
Stock
Common
decrease of $2,481,000, due to reduced
the lowest in the industry.
per
cent of operating revenues.
of
$35,792,000, which represented 18.04 per cent
bonds in the treasury
INCOME
$
no
on
equipment obligations.
Total
.
..
outstanding stock totaled
paid
were
a
share
an
on
on
extra
paid
on
consecutive
*
Inc.
Dec.
563,866
10
Dec.
1,322,469
14
Dec.
6,090,^98
3
$
■■
11,692,489
:
Inc.
658,504
6
493,684
22
$
5,925,478
3
$
1,583,246
6
1,781,613
Dec.
$
203,034,371
Dec.
$
27,132,258
Dec.
Equipment—Repairs and Maintenance....
40,229,811
Inc.
Transportation—Operations
57,661,174
Dec.
687,931
1
Other Expenses..
11,426,385
Inc.
113,929
1
2,130,729
2
2,481,142
6
of Balance of
Adjustment Preferred Stock and
Total.
...../....,..........,...
,
dividend of $.50.
EXPENSES AND OTHER CHARGES:
Way and Structures—Repairs and
The latter in¬
Commori Stock.
Dividends have
Adjustment Preferred Stock for 57
years
and
on
Common Stock for 53
consecutive years.
i
During the year, 120 new
Maintenance
„
industries and additions
.
u.. /.
Total Railway Operating Expenses
Taxes—Federal
existing plants,
with
a
$
136,449,628
Dec.
37,075,655
Dec.
1,431,668
Dec.
90,116
6
174,956,951
Dec.
$
4,701,987
3
28,077,420
Dec.
$
1,223,491
4
Y 700,690
61
522,801
2
$
28,696,871
8,378,784
total capital investment of
Interest
$116,490,000,
$
26,519
State, County
and Local
to
6
3
189,560,269
$
Railway Operating Revenues.
Other Income—Net
'
been
6,314,691
2,110,728
$
8,105,151
......
Rent Income—Equipment and Joint
Facilities—Net
;..v.-.
•,
Cent
4,913,775
Mail, Express and Miscellaneous
funded debt when due.
Dec.
Per
With 1952
Dividends at the annual rate of $1.00 a
Income.
cluded
substantial part of
73,036,908
Passenger
of income, will
$20,571,000, which was 74 per cent
$3.50
compe¬
STATEMENT
103,504,435
.
•
share
a
1953
Freight—Bituminous Coal;
purchased and held for later
sufficient to retire the
Dividends
revenues
Comparison
together with Company
transfer to the fund, with investment
has
was
and fuel requirements and that the Company will
REVENUES AND OTHER INCOME:
of
It is estimated that the assets
properties.
voluntary sinking fund,
The Company
gross
cent
of the principal transporters of Bituminous Coal.
CONDENSED
...
Other.
be
per
exceptionally high.
and only 5.26 per cent of invest¬
total capitalization
a
one
year.
record peak
funded debt amounted to
Outstanding
ment in
continue to be
*
was
—
a
that, notwithstanding increased
fuels, coal will continue to supply
the Nation's energy
each employee, $6.59 for each share of
of the best indices—
The percentage of
14.81
—
Management believes
tition from other
additional amortization of emergency defense facilities.
and
earnings
$37,076,000,
The
one
The transportation ratio of 30.42
brought down to net income
Taxes totaled
—
employing
11,350
on
Funded Debt
•
persons,, were
Total
'
$
,
constructed in Norfolk and Western territory.
•
•
g
Capital expenditures lor additions
ments to
fixed properties
of the railway were
$9,795,000 and for new equipment
and improve¬
and equipment
NET INCOME
$
SINKING AND OTHER RESERVE FUNDS-
i
450,876
APPROPRIATIONS
BALANCE OF INCOME
,
$
Dec.
27,626,544
Dec.
/$
15
16
(1544)
The Commercial and Financial
Chronicle...
fluence
Bull Market in Long Bonds
By PETER L. BERNSTEIN
in
bonds
for
further
appreciation
in
longterm bond prices, but at slower pace.
Maintains following
factors will be controlling: (1) attractive, but not "bargain
counter," yields; (2) sustained demand for money, and (3)
stability, rather than easy-money injections, as the aim of
Reserve and Treasury policy. Because of
temporary oversupply of tax-exempt bonds, prefers them to government
j
issues
The
bear
bonds
market
to
came
rather
investment media for
as
in
long-term
end—and
an
the
a
which
sunk
had
below
at
vestors
tant,
with
this
writing
Second,
above
borrowed
selling
is
yield after taxes — for
figure income receivers is
also
temper the
common
stocks
attractive in face
now
and
the
rate
profits.
yield from
outlook
from
tax
long-term
should
urgency exists
while
another
compara¬
In fact,
are
we
inclined
are
prefer them
corpo¬
for
stocks—that
new
at
this
time
lier
to
investment media
as
money over even Federal
on
in¬
be
By WALLACE
to
their
are
worst,
respect¬
able
of
3%,
than
more
High
grade
slipped back
than
level
of
0,
having
/
completely re¬
nine months a protracted
traced in
decline
10
back
now
at the
Peter L. Bernstein
States
be
at
two
years.
corporates
to
of
have
yield
some
and
a
coupon issues put out
of
less
the
Treasury
crease—and
housing
the
stimulate
for
the
It
21/2%.
In
ing
May I set forth the follow¬
why I expected the
reasons
bond
may
even
to
the
payments
in
Administration's
if passed,
may,
basis
record of
a
stock
now
100%
on a
alone.
consistency
dividends
that
stock
rough time
market
Central
this
toward
Disappoints
The surprise in the carrier
is
cor¬
long
way
the
a
low
explaining
yield basis of the issue.
if
*
*
V
'
-
V-
tape
have
nal
lag late in January,
in¬
a
Market Effect of Capital
Adjustments
A
on
a
was
being tested
the
unsuccess¬
*
ing
*
for
Some of the
issue
tumbled
point and
fully.
*
Wall
one
bit
of
Street
work
half
a
which
is
around
fairly
apologists tried throughout
the
end
In
word
of
last
tp the
issues that
paid stock dividends have ad¬
drastic
stock in the 20s.
a
a
mild sell¬
on
by
researcher
get into the market for votes,
showed that from 1939
day when the 1953 high
was
to
similar
year,
vanced well past
without capital
fact,
battle
124%, those
adjustments
the
Federal
Reserve
and,
the hard to make the case one of
only 46%. The average of all
between the Central
Treasury will probably aim at sta¬
manage¬ listed common stocks
have
precautionary selling over the ment and
bility rather than toward further
insurgent Robert R. advanced
,War threat posed
82% since 1939.
injections of easy money.
by Indo.
The
Influence
are
more
annual
porations and goes
another
was
for
Finally, the combined mone¬
tary-debt management policies of
already being called and re¬
funded at lower rates. Six or nine
than
continue
China, but their logic
strained.
Instead,
high
months ago it was
easy to get
pretty close to 3% on a top
quality
long-term tax exempt bond; to¬
day, it is difficult to find a high
grade tax exempt
2V2%. In addition to
non-cumulative
STREETE
of
part
considerable demand
for residential
mortgage money.
during 1953
yielding
will
program
arbitrarily
regula¬
larger disbursements, the
This is
hesi¬
demand
on
susbtantial and
cut
Exchange
unique among American
any
and finance companies will
prob¬
SO
Stock
tions to
Government issues.
-
below
payment
by
THE MARKET... AND YOU
pe¬
manufacturers, retailers, railroads,
were
split.
then
was
week, what with the first late section
was New
York Cen¬
on heavy selling of the
tral.
Despite countless brok¬
ably shrink further, the volume of year so far. Almost two months ers' opinions that the battle
Treasury 2V2S financing by public utilities, local ago to the day was the last for
control was
of
1972
getting so hot
67, governments,
and
the
United late ticker and, as in the
origi¬ both factions would
which
109 and yield¬
ing less than
2.75%.
The
payment
equivalent of
The 5% basis
a
small
real
buying side.
the
money
75%
a
.
rounded out the
the
funds
not
the
on
later
years
exempt
resumed and this
temporary oversupyear another 25%
was
or¬
ply,
tax
exempt
bonds
have
lagged somewhat, and therefore dered, in addition to an ear¬
as
When the take-home
common
that
because of
of the
for
to
bonds, the latter look
tively attractive indeed.
stocks.
common
compared to those for bonds
not
pared
fivecom¬
add up to another
doubt whether
we
are
for
money.
work
par,
from
risks
exception of the 1951-53
put to
market
also of the opinion that
are
yields
riod, bonds are obviously not
the bargain counter.
While
abrupt end, at that—last
The new Treasury 3V4S,
July.
new
bull
should
enthusiasm for
We
looks
the
chip common stocks, then the
slowing down of the rising trend
Vice-President, Bernstein-Macauley, Inc.
Investment counsel
in
blue
Thursday, April 8, 1954
of
Official
Policies
The attiude of
and the
serve
rection
the
Treasury wil be de¬
portant to understand the prem¬
ises and objectives of their
pol¬
icies.
The
Federal
to
Reserve's
create
willing¬
atmosphere of
an
called
was
Federal Re¬
cisive in the money
markets, as it
has in the past. It is therefore im¬
ness
was
bit
technical
basis
a
for
cor¬
on
after
a
a
seven
days of advances by the in¬
dustrials, plus the fact that
Young, the stock has been
drooping. At its best of 26, it
was
a
half
mere
than the
battle
background and it
below
was
the
1951
peak. Yet in 1946 it sold
definite
high as 353/4.
signs of running out of steam.
*
*
*
Then, too, the fact that indus¬
the
advance
a
as
showed
As
trials had pushed to the
indication
one
of
how
*
plenty
the
which
of
whether
over
of
*
Motors,
point better shown
1953 best without
fraction
a
*
,
Reo
deal for sale
a
would actu¬
company
ally
come
able
to
off,
another
was
breast
has
skepticism
the
tide
suc¬
cessfully. Approval of its sale
to
Henney Motors for the
equivalent of $30 a share in a
high¬ selective
the
current; bull cash deal lifted the
going
(1) The high yields
October, 1929,
prevailing
swing has been,
at that time were
Central's market price to $28 which
almost irresist¬ government
securities,
lowered without
any
material
help
1929 figure of 256 is well
ible.
member
bank
reserve
require¬ £rom the rails made for a
represented close to a 10%
(2) The expected
decline
in ments, and reduced the rediscount
Telephone is improvement on a hop of a
strained situation. And, final¬ beyond reach.
business activity would reduce
the rate. No steps have been taken to
another instance that belies
demand for money.
reverse
couple points. For Reo, which
the resultant
upswing in ly, once the stop-loss orders
the indication of the
(3) Substantial sums held tem¬ bond prices. At the same
average had fallen into rough times
time, on the books were cleaned
the
that prices are at their
porarily in short-term securities
Treasury has temporarily
high¬ culminating in reorganization
up, selling dried up markedly
would be switched to
est
level
since
long-term given up its announced objective
1929
this in
without
1941, this wasn't any par¬
bonds, opce investor confidence in of refunding short-term
spurring any new
issues
stalwart has been
the
hovering ticular record.
In
the
far
long-term market were re¬ with long-term bonds;
selling orders from the public.
market to turn
upward,
as:
abundant loanable funds has been
obvious.
They have
purchased
est levels since
—
refundings
established.
"•
and
(4) Both political and economic
factors
argued
versal
in
the
in
favor
actual
started
with
Fed err1
a
re¬
tight money policy
of the Federal Reserve
The
of
authorities.
of
sequence
sudden
a
Reserve
policy
events
shift
in
in
June,'
which in turn
immediately estab¬
lished confidence in the
long-term
market.
Investors rushed to
buy
while
yields
were
so
attractive,
and, with the drying
mand
sult
for
of
up of the de¬
business funds as a re¬
the
deepening recession,
outstanding bonds assumed some¬
thing of a scarcity value.
>
Will the Bond Market
Go Higher?
The
important question
whether
an
this
end.
t'on
The
has
move
answer
now
come
to this
is
to
ques-
is
significant for common
stockholders as well as for bond¬
holders.
In
our
opinion,
some
further ap¬
preciation
in
long-term
bond
prices is possible, even
likely, but
we
believe it will be at a
much
slow pace than what we
have wit¬
nessed in
the past nine
months.
On the other
hand, a decline in
the price of
long-term bonds does
not seem
probable; any decline
which
may
occur
should
be lim¬
ited in both
depth and duration.
The
reasoning which underlies
this
forecast
is
based
upon
changes in the four factors men¬
tioned above as the motive
forces
in the sharp upward
swing in the
bond market.
First of
all, yields
on
are
no
Although
long-term
longer
the re¬
bonds
is
However—and this is vitally
important—both of these agencies
(as well
the President himself)
are
eager
to avoid
laying the
groundwork for a runaway infla¬
tion
do
as
when
comes
to
the
current
end.
an
everything
recession
While they will
necessary
to
cushion the recession, it would be
unwise to expect them to do
than is
necessary.
'If
the
money
supply
creased
still
and if bond
further
yields
more
is
from
in¬
here
allowed to
are
decline to the levels
prevailing in
1948 or 1946, businesses not
likely
to
receive
very
stimulation.
end
not
*
•
*
around
*
much
Tight
additional
money
may
boom, but easy money can¬
stop a recession. On the other
a
164
1946
Blue Chips and Specialties
Hit
..;vr
for
World War II)
subsequent
inflationary
form the basis
can
intensification
The
brunt of the, pressure
landed on the handful of blue
chip
issues
that
carried
Therefore, it
and also is well below its
best of 310.
specific
likely that
be
may
Treasury
to
created
finance
for
part
the
of
is
a
ball
as
the
!•
in
is
official
market
out
likely to be
action.
*
*
than
ular
all
cently,
and
a
had
made
IBM
and
similar
badly
which
have
Carrier
Corp.
can
But
if
the
bond
artificial
stimulation,
artificial
little
stimulation
will1 be given.
Bonds
If the
their
refusal
months to
the
laggard
painted
rails,
an
en¬
vs.
a
Stocks
bond prices
summer has been an in¬
up
In addition to
for
under
some
*
is
*
—
stock
dividends
last
*
Indications
Indecisive
technical
a
Street
proof
stand¬
they,
has
like
of
habit.
in 1 this
that
did
little to cheer their followers.
1937
ment
to
was
1946
it
IBM is
has
been
annual
usually
of
followed from
whbn
areas
the
the rails,
jumped to 25% and two
the picture
They
some
a
is
no
involved.
on
similarly
haven't
seri¬
test of the 1954
three points away,
are far more in
and, in fact,
line for
low
testing of the 1954
a
shade
a
under
the
Utilities have
100
swayed
moderately with the general
market,
have
but
held
achieving
.
[The
article
t
a
-
the
well
new
»
t
views
do
not
coincide
Chronicle.
those
on
up
whole
after
high for
a
of years.
score
time
pay¬
were
technical basis
depart¬ mark.
making
payments,
willingness to back 5%. This
pressure
For
long high
issues
splits and stock
are a
lapses,
policy
too, paper
signal
correction at
a
well overdue and
was
of ously tried
From 1928 on, with a few oc¬
a
least
barren.
*
holders
laggard
no
340
graphic
known
six casional
get in accord with
industrials,
showed
sharp rise in
since last
discouraging.
stay where it is with¬
Technical
a
where
cases.
The
1953 at 247 and
rapidly to
Wall
what
here.
to
up
issue closed
Electric, DuPont, Allied
The
#
matter of minutes the equally rapid advance it the industrials
its
by
currently.
,
the traders rushed to pro¬
tect their profits.
Shell Oil
were
"prices"—
the averages—
supposed to be far lower
From
as
eral
when
until very re¬ some days were sizable, run¬
handled roughly ning as much as 10 points at point, little decisive was done
up three to four a clip. But offsetting this was by the market this week. For
gave
points in
1948
*
year
were
gen¬
countered
in
were
*
•
issue
that is to say,
and " specialties long one.
the
the
able to appear at better than
very
rapidly growing deficit with a tirely different picture in re¬ ment. The issue was
split in
long-term bond, and any heavi¬
cent
months,- were doubly 1926 on a three-for-one basis.
ness in the
bond market
eral
1946
International Business Ma¬
through into
ground traversed by the aver¬ chines was rather busy back¬
ages in 1929 for the only time ing up after reaching an allin history. The
aircrafts, pop¬ time high recently. Losses on
money will not become very much
"easier" than it is now. Sufficient
funds
swing
posted a
1929
high of past 34 and was still
of
that don't bear 29
averages
enthusiastic bull
more
The list of such
cases
the
out
in
200
industrials broke
Chemical
seems
sold
above
'
of
pressures.
it
shade
a
'
and Cities Service—no stran¬ climbed
hand, when business activity re¬
vives, a superfluous money sup¬ gers to recent popularity — month.
ply (such as we had at the end of were also
prime targets. Gen¬
for
while
.
limited to the
or
intermediate range of 1958 to 1961.
still
higher than it has been at any
time for more than 10 years, with
issues have been
money
additional
"irresistible."
turn
new
either short-term
#
in
this
necessarily
at
with
of the
They
of the
'
expressed
are
those
any¬
presented
author only. 1
as
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1545)
■
r
the secret behind Automatic
each compartment
Refrigeration...
moisture (or
engineers.
developed the amazing True-Zone plate—
a new kind of cooling coil in the fresh food
a
For in the
ordinary refrigerator, frost
around the cold coils that supply
cooling power, and the cooling power
builds up
the
is
cut
down. Then, whether the
frost is
removed
by shutting off the refrigeration,
or
by adding heat in addition to speed the
process, the unhappy effect is the same—
the level of cold is destroyed ... tempera¬
tures rise in both the freezer and fresh
food compartments,
ness suffer.
and quality and fresh¬
finally cracking the problem of
removing frost without removing cold,
Philco engineers took an entirely new
In
approach
to
refrigeration—
and
fresh
an
food
compartments.
frost) in the other. And they
removes
They
insulated vapor barrier to make
frost
as
it is formed,
maintains the uniform cold needed for
food protection.
yet
And
the
whole Philco
system
works
automatically!
The Philco system not
only solves the
problem but also automatically keeps
the proper humidity for fresh foods at all
times
in short, it is the world's first airconditioned, completely automatic refrig¬
evolving this refrigeration system
itself", Philco engineers
that "thinks for
integrated their research with Philco pro¬
duction
facilities
advance available
to
to
make this great
every
home owner. It
is another
work
example of the unique team¬
of Research and Application that
makes the Philco
name
synonymous
with
leadership in Television ... Radio ... Air
Conditioning... Electric Ranges... Freez¬
ers
and Refrigeration.
frost
...
And the end is not in
sight!
...
erator.
Summer
are no
or
winter, rain
controls
to
humidity—neither
They gave separate cooling to the freezer
installed
section that
In
independent of the
Frost insulates... and this fact has long
been
major problem to refrigeration
and
an
ideal 38°
or
shine, there
manipulate. Yet perfect
dry nor too moist—
42° cold is maintained
too
to
in the fresh food compartment,
stat zero
ANOTHER FIRST FROM
and
degrees in the freezer.
a con¬
PHILCO
I
I I I ftV
RESEARCH
17
-18
The Commercial and Financial Chronicle...
(1546)
do
Consumer Credit: A Vital
Prop to Nation's Economy
credit
instalment customers
economy,
these
are
fore,
i
look into a
it is
the
we
as
t
u
u r
e,
for
good
banks
and fi¬
nance
compa¬
nies in the in¬
it
business
to
our
ties, to check
directions
and
when
and
In the past .year there
Chairman
Martin
about
it.
ex¬
position to be careful about the
actly how we
quality of the business we put on
our books, so that credit and col¬
propose to
meet today's
lection problems were at a mini¬
A. 0. Dietz
and
tomor¬
mum.-^
'-V.
W;
- W ':.V: /
row's problems.
I would like to
Then, before the midyear, con¬
direct such a reeaxamination this sumer spending, particularly for
morning to the field of the gen¬ durables, began to taper off—first
eral public interest—to the ques¬ in used cars, then in one type of
tion of "What We Owe Our Cus¬
'
'
what
We all know
to
V.
custom¬
our
American
us.
consum¬
ings continued to
dicted, because
go
we
pre¬
up,'as
still
were
re¬
using
are
credit today have
-
amazing demonstration of the
an
American
and
business
American
between
exists
which
confidence
mutual
Statistical¬
consumers.
others
the
a
evidence
in dollars.
not
who
to those
but also to
money
citizen, for the citizens of
every
this
country have
pect
us,
right to ex¬
business leaders, to
as
a
decisions that will contrib¬
make
ute
us
only
the
to
prosperity and con-J
tinued growth of the nation. Why?
Because
ethics
the
in
be.
and
opinion,
level
where
and
it should
be fair
for
tential
our
maturity—
all business^
guiding
our
must
ment
of
principle is
just treat¬
and
customers
customers
and
and
wise
po¬
eco¬
nomic judgment in the interest of
the national economy. Recogniz¬
ing that, what do
More
it
which
what
46
in
the
from
occur
now?
do about it?
specifically, what do
about
that
we
appear
we
at
uncertain
be
a
ahead
of meeting this
ness
weather,
will
influence
these
ment
look
in
first
of
us
type of
at
the
tional
the
by
Instalment
sales
But
it
of
is
may
improve¬
good
weeks.
Since
the
automobile fi¬
direct lending ap¬
year,
and
to
purchases
consumer -
We
can
look
now
for
a
economy shows some
although
provement,
we
a
still
are
boom
close
of
good
and fi¬
general
owing
his
heavy
a
family
catches
do?
fire,
or is stolen or is wrecked, how is
he going to buy another and keep
up the payments he already owes?
Adequate insurance and effec¬
tive
are
car
on
<-
servicing 01 customer claims
just as much a part of a sound
instalment
consumer
the
as
financing op¬
itself. You
money
do your customer a disservice if,
in the interests of false economy
to
or
quote
overall rate lower
an
than
somebody
your
customer
else,
you
permit
undertake
to
a
heavy financial obligation without
adequate protection.
I warn
against it for I am sure the times
the
to
fact
the
is
top
of
all-time
proportions.
However, I will not give you an
economic forecast beyond this: as
in the past year, we can look for
changeable economic condi¬
very
tions.
We
nomic
ing
ups
-and
normal, peacetime
downs-—
eco¬
expect
can
conditions geared to shift¬
consumer
examine
demands.
We
can
operating policies to¬
day in the expectation that from
day to day new conditions and
new' developments will arise to
In
a
our
wisdom
our
and
challenge
fortitude.
this
particular
should
vital
be
factors
We
economy.
obligation
mentioned.
performing
a
in
are
we
have
which
We
are
of private
Mr. Dietz
Credit
at
the
Na¬
Conference
Bankers Association,
III., March 23, 1954.
of
Chi¬
certain, small
a
per-
lems.
of illustration, I
only one or two.
all
of
us
represented
By
way*
will mention
lessons
and with patience in working out
here
conditions
loose
or
inevitable and thatHhe .individual financial problems
are
inefficient operations
penalized?
be
C,
would
be
It
if
think,
decide
hard
the
and
that losses
ficult
that
■
"*
•
will
.
-
„
of
because
dif-'
more
today
make
to
ica
Rates
should
them
Almost
it
are
funds
providing
possible for people to
of those people who unavo.dably buy automobiles. We had a part
find themselves in trouble.
in putting on the roads of Amer-,
unfortunate;; I
of
many
hazardous
and
V We also
it to
owe
our
customers,
of
most
which
operations,-
manufac-
and
dealers
to
ments
sustaining
The
ting
responsibility. Both the
and
on
government
and
are
bet¬
colleagues in
industry. In facing
the trying period
ahead, we must
business
us
and
our
we
must be sure that our
come Out of only the gross income
like these, there also is the tempProvided by the rates we charge,
tation to abandon all sound rules lhere San be no Justification or
and credit principles/ Some insti- economic reason for any institu¬
tions mav do this to maintain- bon s se"lng !ts rates so low that
volume
or
to
please
dealers. 'l c.an h°be '° handlue only the
other extreme, in times,
At the
Others may try to
basis
the
be
of terms
tragic if
low
It
institutions al-
some
themselves
b"s,fn?=s ?f the very best nskswill-™"1 the fervent (and misplaced)
sell credit on
alone.
to
stampeded
be
by the prospect of lower volume
and,
that
so
result, let down the bars
as a
this
is
great many
a
with
debt
a
not related to their small
the
goods they are purchasing.-Repossessions
will
rise,
dealers will
take heavy losses, and the blame
equities
dlsaPPearinS
which
then
instalment
credit
would
deserve
be
we
to
w o u
1 d
perfectly
the
businesscommunity
one
^ ^
serve
can
community
e
industry and
by
choosy,
a
afraid-to-take-a-loss policy, bas:d
unrealistically low rates. Any
one with a price structure which
not
pr0duce
a
stockholders,
fair return for
which prevents
frorn rendering a full
service
the market, which leaves him
vulnerable to losses if he runs into
u n e x
p e c
t
d
e
delinquencies
write-offs,, would
.
it
£erves>
m
apparent to every one.
So
tomers wll> cause tno collection
fKPjmse or losses. In attempting
'° be.tbl® sele,ctlve' 11 w" "otbe
offering the broad credit facili-
,
happens,
themselves burdened
0r
cus-
"es ™hlcb a.re lts responsibilities
people will be drawn into financial obligations which they simply
cannot
handle.
They will find
which
blue chip
a
in
extended
is
,
If
b°Pe that these
-
credit
be
better
or
off
extremes' out of the business,
must avoid the
of
tightening, up too much or
loosening up too much. I want
to emphasize as strongly as pos-
It is just as true that we must
give our customers the best possible financing services and facili-
sible
ties -at the lowest
that
owe
we
it to
tomers at all times to
cus-
o^r
operate with
wisdom, objectivity, courage, and
intelligence.
We must pursue a
sound, middle road and continue
to
credit
make
good risks.
available
extend credit to every dealer
is entitled
factured
all
to
We must continue to
it and to all
to
manu-
cost.
Unneces-
sary expenses, unnecessary
losses,
and careless credit and salvage
programs force unduly high rates
which penalize the vast majority
of
our
customers who
sponsible
for
-
any
are
share of these avoidable
or
not
re-
appreciable
expenses
45-million
the
bars
clogging highway
bottlenecks, choking parking lots,
and being involved in accidents
now
are
and
fulfilled.
be
can
we
our
We
must
have grave re-
sponsibilities which must be
ministered
seriously
emotionally.
rather
ad-
than
Collection Policies
departments.
these, we cannot
tions to
It
is
take
our
credit, to
care
duty,
see
that
like
collec-
of themselves.
as
grantors
our
of
customers
stay current in their payments.
All
of
us
know
that
a
certain
have
hands
-
right to wash
our,
responsibility
for
all
of
'
:
no
these conditions.
We do not need
to.
Banks, finance companies, the
industry, the rubber indus¬
try, the petroleum industry, and
many others who are vitally con¬
cerned with safer highways have
joined with the automobile manusteel
and dealers in the Auto¬
iacturers
motive
Safety Foundation to do
something
constructive
about
highway safety problem s. We
want to keep our future customers
alive
and
whole, but we also
discharge a moral re¬
sponsibility. The Automotive
Safety Foundation is the means
by which many of us are doing it.
Want
to
The
Foundation
functions
in
two ways:
Through
(1)
ft
which
grants
makes
of
funds
to
universities,
national, civic organizations, and
other institutions for training, re-,
search, and educational projects.
W (2)-Through the
assistance of
its technical staff, on request of
public officials, when it provides
trained engineering and other ex¬
pert guidance on highway master-
planning,
problems,
highway
on
financing
traffic laws, and on
on
the study of specific traffic prob¬
lems.
The function of the Foundation
is to
provide the seed money, the
trigger action, to cause big things
to
happen in the traffic-safety
field.
than
Last
this
$35,000
150
year, we raised more
million for this purpose.
$1
amount,
was
approximately
contributed by about
banks.
That
was
welcome
help, but it scarcely reflects the
important part the instalmentor unethical credit
practices on the part of dealers, credit banks are taking in the
in fear of losing the dealers' busi-1 automotive
industry.
^ only
scratches the surface when you
ness.
The public must be protected from deceptive credit op¬ realize that more than 1,500 banks
erations even though a handful of are represented here at this meet¬
ing and
dealers may want to use them.
times
In
expect
We
erate dishonest
Another serious obligation con¬
cerns the operation of our collec¬
tion
economic loss.
Of
losses.
insti- v Finally, in a desire to get additutions have been financing, and
tional business from dealers, fifor which a public demand exists nancial institutions must not tolproducts
that
who
our
public service.
service,
turers, and run for the economic customers
are paying adequate
storm cellars
'
*.
,rates. Sufficient loss reserves can
private business
Washington is clearly and stead¬
fastly dedicated to this principle
on
stresses for
few
very
centage of our customers. It is
our job to act. with understanding
recognize that
circumstance,
present national Administration in
decisions
and
problems.
Are all of them
ready for more difficult operating
signs of im¬
because conditions
our
skills,
collection
real
have
busi¬
Ameriran
cago,
or
have been running materially be¬
low the record 1953 figures. \
our
matters.
address
the
of
people
•An
which
foolhardy way.
appliance
recent
nancing
plicable
times
outline concretely
C. I. T. think, after
brief
declines
noticeable,
if spotty,
Automobile sales have
a
pick-up.
lagged but* show
test
situation, I think it is important
to take
Recently,
shown
do
we
Before I
years
staff,
money.
dies
will
If his financed
eration
there are mdecide that
extreme,
one
■
time to time and
to
it
if
also
stops growing!
even
The
have reached
we
ethical
of
criticized
criti¬
and
in sales
the way
this is true
increases
seasonal advance
mousetraps.
that
be
nancing volume.
That's the way we get better
In my
if credit
be
to
are
of
changed that, whatever the eco¬
situation, we are, morally
speaking, in a perpetual buyers'
That's
we
so
nomic
market.
that
has
country
credit
the
code
business
this
consumer
potential effect of
leveling-off.
There was some
to
sponsibilities
not about
worry
highs of
but rather
cized
But,we are not doing business
on
a
one-way
street.
We, also
have great responsibilities to our
customers; and we have great re¬
began to
new
ly, it is perfectly obvious that our
customers owe us a great deal—
owe
costs
his
the', economy, and ourselves to
they will tighten terms to the conduct our business on a sound which, unfortunately, kill 38,000
appliance after another, and fi¬ extreme, select only the very best economic basis.
To continue to people a year and cause billions
nally in new cars. Our outstand¬ risks, pull out on their commit- provide a well rounded financing of dollars worth of purposeless
instalment placing, short term Regulation W
outstanding ob¬ paper ' with new longer term
ligations amounting to $21,400,- paper. But we all observed that
000,000. This is a great deal of new volume had begun to decline.
money.
The fact that we have Collection problems did not loom
freely advanced such a sum to large, but there were more of
The Federal Reserve and
the mass of American people is them.
who
ers
summarily
to reposses
and
the collateral,
A good collection
in-course,
cross-currents
are
then
one around
—
send some
economy,
stitutions
.
ers owe
the
of
there
At
have oeen
rapid and frequent changes in the
Congress was asked to reinstate
Regulation W. We were all in a
to
determine
tomers."
,
institutions supply- worth every dollar it costs to have
ing credit to American consumers efficient facilities, procedures, and
are
tempted to take extrerri&^c- personnel, to assure that delintion in exactly opposite directions, -quencies do not get our of hand.
the
The State of Consumer Credit
with
opera¬
tions
what
ca¬
depend¬
,
responsibili¬
our
If
debt,
his
or
.
stalment cred¬
reexamine
ents.
or
obligations
financial
bring
him
At the same time, it is essential
that we operate with tolerance,
that lie ahead will bring penalties
changing instalment credit business. Last we are in for very bad times eco- understanding, and ingenuity in
to those who are willing to ad¬
spring, sales of all durables were nomically, that the American con- working out the problems of those
sumer
can
no
longer be trusted customers who find themselves vance funds for which they are
setting new records; and, individ¬
with credit, and that the prudent delinquent in extenuating circumresponsible without seeing that
ually and collectively, every one
thing to do is to virtually shut up stances. There is a certain amount this money is secured with insur¬
of our institutions also was in¬
ance.
V.-"
creasing the amount of business shop. Some institutions have had *of unemployment now, and we
Public Understanding
on
our
books month by month. experience with consumer instal- can expect that there will conThe expansion of consumer credit ment credit only in the prosperous -tinue to be a certain amount of
Finally, we owe it to the Amer¬
times of the past decade or so.
unemployment in the future. In ican public, our customers, and
outstandings caused such concern
in Washington that some of us They have had limited losses, lim- addition, we can look for other the industries \ye serve to assume
of financial strains and responsibility in many civic prob¬
were
called down there to meet ited requirements as to credit and-kinds
you will agree that
uncertain times. There¬
pessimist,
a
of missing their payments dates
in fact,
to
be
haz¬
his debt and which
pay
tastrophe
to
many
interfere with his
can
may,
taking their financial
things experience
teaches is that in cnanging times,
One
understanding of instalment credit.
optimist or
ability to
schedule
Lists as important
policy decisions in affording consumer credit: (1) high credit
standards; (2) sound collection policies; (3) fair interest
rates; (4) adequate customer services; and (5) better public
Whether you are an
ards which
needs
the
against
require guidance and un¬
derstanding. Ii they are aiiowed
to drift along, to develop toe habit
-
Standards
Credit
upturn is soon due.
an
be reminded of tneir ooligauons.
lightly, they will suffer and" so
- -will
their creditors, it is a disservice to your own institution
■'
(4) Consumer services,
.and to the customer if, tnroug.i
(5) A greater public under- inattention, you anow paymems
standing of instalment credxt.
•
vto slide 30 or 60 or 90 days beh na
present status of consumer credit, and though admitting a
recent decline in durable goods sales, says there are signs of
improvement and
detail.
some
He
future.
They
business that I would like to
in
nancial
protected
(1) Credit standards.
(2) Collection policies.
(3) Interest rates.
executive, stressing role of consum¬
calls for fair treatment of
along with sound credit stability. Reviews
our
certain
There
rather sub-
stantial number in fact—need to
we face
today,
make necessary
important policy decisions,
are
five major phases of
discuss
company
vital to
as
number of people—a
justified.
opinion,
my
our
By ARTHUR O. DIETZ*
President, C. I. T. Financial Corporation
Leading finance
is
conditions
The
in
er
utmost to insure that this
our
confidence
Thursday, April 8,1954
are
Customer Service
more
supposed
sumer
than
to
be
loans—which
/,Our„ watchword at C. I. T. is;
"There is More to Financing Than
Money."
For the average cus-
Automotive
means
mobile loans.
tomer of
10,000
your
the funds
die loan
heavy
institution
we
advance for
we
make
obligation
him, is
against
mine,
him, or
or
a
very
his
fi¬
banks
making
con¬
auto¬
;
.
-
Every dollar your institution or
my institution contributes to the
Safety Foundation is
immediately matched by
from the
we
car
a
dollar
manufacturers.
Thus,
buy two dollars worth of good
Number 5314
Volume 179
with every
work
tribute.
dollar we coninstitution is not
If your
supporting the Automotive Safety
Foundation, I would like to recommend that you do something about
it when you get back home. I'll
additional infor-
be glad to supply
mation if you
will write me.
Highway Adequacy
A
similar problem
lem
of
not
actual
industry.
h i g h w
better
needs
cilities
that
future
will buy and use
them
from
customers
Tax
insufficient and
are
of
the middle income groups.
.
It-is true that we may expect
instalment buying to fall when all
buying - falls," as it will under
some conditions such as declining
income or fear of unemployment,
But to blame instalment credit for
the decline in buying is putting
the cart before the horse. For instalment buying is an aid to buy-^
acquiring durable goods. By and ing and helps to sustain it; but
large, those who do not use in- people's decisions to buy or not
stalment credit are either lower buy are
determined by deeper
income groups or older families. > forces in the economy, primarily
The use of instalment credit by
consumers' expectations for
not only helps establish and raise their future income and unemthe
younger
families'
living ployment.
Consumer; credit is
standards, but as the statistics in-?'' vigorous Vand dynamic.
A given
dicate, is a self-feeding mechan- obligation does
not represent
ism
which tends to„ keep pur- fixed debt hanging permanently
ment purchases. When they see
that one debt has been reduced
appreciably, they are ready to
contract another.
:
* vf
Actualy, if you stop and think
about this for a moment, this is
not strange. We know that.most
instalment debt is centered in
younger married families in the
middle income groups, who are
the cars we want
to finance for them.
verted
facilities,
going to provide fa-
are
so
beltter
a ys,
maintenance
better
we
the
the
America
parking
better
streets,
all if
This
but
prosperity of
safety
only
future
automotive
and
is the prob-
highway adequacy.
affects
revenues
being di-
are
highway
(1547)
The Commercial and Financial Chronicle -
.
chases
high.
Instalment
credit
and sustains the punch
the purchasing power of
provides
behind
the heads of those who contract it. On Jan. 1, 1953, for example, we in C. I. T. had more
over
$700,000,000 in automobile We must maintain practical credit
standards, sensible collection pol000 individual customers. In the icies, and realistic rates. We must
12 months which followed, more also provide the necessary servthan 600,000 of these people com- ices to protect our customers and
pletely paid off their debts to us. ourselves against unexpected loss,
Handling approximately 10% of We must all use every available
all U. S. auto paper as we do, we method to create a clearer undersee in our own operations clear standing by the general public of
indication that instalment credit is the functions and principles of ina moving, changing, stimulating stalment credit,
force.
y.
j,
|
,
The credit industry, along with
I believe the principal respon- every business, has had some
sibility of financing institutions rough sledding in the past. But
during 1954 is to continue to have it has always been able to meet
faith in the American consumer, the challenge of the times. There
We have learned from experience is every reason to believe that
that the average instalment buyer. this splendid record will stand up
is a person of integrity and sound and be improved in the months
judgment. We can prove our faith ahead. We have today our greatby recognizing that we must fol- est opportunity to grow in use¬
low a firm, middle-of-the-road fulness and service to our cus-"
tomers and to the general public.
course in all of our operations.
than
paper on our books, covering 870,,
purposes—
—
with the gasoline taxes in many
as
places. In dollars of equal pur¬
chasing power, we are spending
less today on streets and highways
than
not
did in the 1930's. We are
we
replacing roadways as fast as
'we
with
up
them out and load them
wear
it to
owe
and trucks. We
more cars
customers and our¬
our
selves to get interested and
-in
obtaining
cities, states,
large.
We also
active
in o u r
nation at
roadways
the
and
it to
owe
customers
our
and to the economy to
bring about
the widest possible public under¬
standing of what consumer instal¬
ment financing is, how it operates,
and the important contributions it
makes to the
public welfare. It is
job to teach the public how to
our
instalment
use
to
credit
how
and
-advantage
the
best
value
to
it.
In the
past, in times of economic
uncertainty
or, difficulty,
there
have been many people who tried,
with
credit
tion's
they
We
good
educate
ills,
con¬
na¬
matter
no
came from.
it to the economy
owe
in
work
for
the
of
all
economic
where
blame
success, to
some
sumer
times
consumer
to
bad
American
every
-true facts of
and
to
the
to
credit. We
must try to make him understand
that
credit
consumer
is
of
tre¬
mendous service to the economy,
and that there is
„
no
credit
is
consumer
contributor
evidence that
an
^credit has provided
vital
year—a
is
It
significant
a
to
deflation, nor is it
unstabilizing force. Consumer
the
^comfort
and
prop
boon
,
to the economy.
which
the
raised
American
the
of
,
after
year
—
home
the
living standards of the
family to levels which
higher than those enjoyed by
American
are
any
other class, in any other na¬
any other time in history.
tion, at
We
must
supply
which
facts
will offset widely held prejudices
and misconceptions. For example,
there
is
the
belief
when
that
a
family contracts an
instalment
debt, it is "removed from the
market"—that its "future is mort¬
gaged"
so
that
it has
no
buying
left. The facts are clearly
to the contrary.
The
University
of
Michigan
study of consumer buying habits,
conducted annually for the Fed¬
eral
Reserve
Board, has some
striking information about the be¬
power
ood News for
,
havior
taken
of
on
instalment debt.
formation
is
for the first
.
I believe this in¬
mean
FEDERAL EXCISE TAX
I
being publicly cited
time today.
The 1952 study which is
typical
FEDERAL EXCISE TAX
ON LONG DISTANCE
ON LOCAL SERVICE
of other years, the Michigan peo¬
ple
say,
families
at
Telephone Users
t„e reductions in federal excise taxes, voted recently by Congress,
after they are
personal indebtedness—
people
without
instalment
debt
REDUCED
REDUCED
families
who
started
with instalment debt
the
paying 25%
bought new
durables during the year!
Improving Living Standards
We think
ple
who
this
use
means
greatest
living
need
aspirations
to
standards
saving in taxes
None of it is retained
15% TO 10%
billed
to you on or
on
a
certain amount
of their income
to
regular instal-
BELL
comes
off the bills of
April 1 and apply to service
less to keep in touch by telephone.
the
-tend to allocate
you now pay
by the telephone companies.
credit
or
new taxes.
after that date.
Now it costs you even
improve their
and that they
customers.
The reductions went into effect
25% TO 10%
Your telephone bill is'
Long Distance calls,
that peo¬
.instalment
have the highest
on
FROM
year
users.
On Local telephone service, the tax is now 10 % instead of 15%.
The entire amount of the
our
FROM
for telephone
by the entire difference between the old and the
Instead of
10 %.
shows that only 25% of
substantial savings
lowered
the
beginning of the year ac¬
tually bought durable goods dur¬
ing the year—while 45% of the
19
TELEPHONE
SYSTEM
.
20
(1548)
ti
The Commercial and Financial Chronicle... Thursday, April 8, 1954
j
'
•
<
•
f
■
J
bring service to
people. ;
or
The New Federal
Another
is that
Electric Power
By
RALPH
Federal facilities.
A. TUDOR*
let
ter
Under
Secretary Tudor reviews activities of Federal Govern¬
ment in power business, and calls attention to new policy by
the Department of the Interior in which it is stated that only
such hydroelectric projects, which, because of size or com¬
plexity, are beyond the means of private enterprise will be
undertaken by government. Explains implementation of this
policy, and reveals why no Federal projects have been sold to
One
of
the
most
debated
"is beginning to
do¬
mestic issues in this country
today
is the matter of ownership of elec¬
tric
power
generating and trans¬
mission facili¬
ties—shall the
j
economi¬
cally justified and feasible. The
department will particularly em¬
prise.
bility of
between
ties
was
divided with
wise
approximate¬
ly 78% owned
by private investors, 10% by nonFederal public
bodies and 12%
by the Federal Government.
Participation by the
Federal
this
in
to
back
field
to
Act
was
eration
of
the
Reclamation
that
since
laws
the principle
followed
have
the
gen¬
in its reclama¬
That law and all of
projects.
that
the
power
tion
time
Federal
the
include
to
be
can
the
Reclamation
amended
permit
Tudor
when
1906
National
Government
The responsi¬
Department
utilization
the
and
of
interest of the
government was reclamation of
land and the generation of elec¬
tric
energy
was
a
by-product.
primary
Later, legislation for flood control
and navigation improvement per¬
of
natural
re¬
The department does not
sources.
A.
Ralph
traced
the
assistance in the conservation and
parties
Government
with
Interior is to give leadership
three
these
the pri¬
power needs of an area rests
the people locally.
facili¬
power
that
responsibility for supplying
mary
1953, the own¬
ership of
recognized
that it has exclusive right
assume
or
responsibility for the construc¬
tion of dams or the generation,
transmission
and
sale
which local interests, either pub¬
lic or private, are willing and able
provide in accordance with li¬
and
censes
Federal
other
of
the
Commission
Power
other appropriate
ies and which
regulatory bod¬
consonant with
are
the best development of the natu¬
ral
of the area."
resources
waters
there
of
Policy
answers
great
a
an
area.
It is not
a
part of the
Department of the Interior, and
therefore, my remarks do not ap¬
ply to it.
Power
Because
this
Policy
of
Statement
the
were
so
many uncertainties
re¬
garding past and future policies,
the Department of the Interior,
ident
18
his
policy
power
of the Pres¬
concurrence
and
of last
Cabinet,
statement
yean
"It
was
issued
a
Aug.
on
brief and
clear and in general it was favor¬
received
ably
throughout
the
country. I believe, though, that it
would be well if I called your at¬
tention
tant
again to the most impor¬
of this * statement.
It
part
reads
as
follows:
erating properties
to
swer
that
this
the
terior
not
to sell any
ting
by Congress.
These
ties include the
which
been
or
not put¬
are
These
think
I
they
lustrate
the
sufficient to il¬
that, aside from
principles to be faced,
to
basic
it would
are
you
be
rather imnractical to
consummate
such
Sales
of
sale.
a
Are
There
Feasible
be
may
exceptions to the above rule and
it is possible that the Central Val¬
ley Project in California is
these.
This
within
project
California.
from
its
own
purchase
ties, such
State,
as a
concrete proposal
of
some
our
facili¬
proposal will be ap¬
by us with an open
mind. "I will discuss this in more
a
proached
detail
I
little later.
a
know
this
is
somewhat
of
a
contradiction of what the Admin¬
istration has been
credited
charged and
having said. How¬
quite familiar with the
with
policies of
this
the
matter,
which is
disposal of surplus
There
for
in
nomically produced in the course
of the development of these re¬
our
of
the
I
know
of
the
depression
condition
a
Interior will, therefore, actively
plan and recommend construction
*
An address by Under
Secretary Tudor
fcefore the MuniciDal Forum of New
York,
New York City, March
4, 1954.
than
one
brought
that made
this
ment
the
encouraged
to
initiate
California
was
has
always
work.
idea
some
that
The State
of
acquiring
have
and
them
been
recently approached the
we
that
have,
will
we
this mat¬
on
in
effect,
it
ship
it
if
recovers
dollars from the purchase
many
as
told
consider
the Federal Government
as
the
built.
wou|d if it retained
owner¬
If we reach
of the
project
agreement as to price and condi¬
tions, it will then, of course, be
necessary for California to obtain
Federal legislation
to authorize
the purchase and sale. In a simi¬
lar vein, the State of Arizona has
approached us with the thought
in mind that the State Power Au¬
thority might purchase the feeder
wholly within
exclusive
interconnect
transmission
of
Hoover
those
Dam,
Dam and Parker Dam.
will
not
consider
that
Davis
Again,
we
proposal
any
which fails to provide the Federal
Government with as many dollars
by purchase and sale as it would
if ownership is retained.
In the
final
analysis, it will be
for
the
the
necessary
State
of
necessary
Arizona
to
seek
Federal legislation.
if
sale is consummated in either
a
both
instances, it will be
exception to a general rule.
or
an
of
the
eral
several
good
position and there
am
interested
are
two
fully appre¬
place, we are
more
anxious
credit
of
new
to
used
have
for
facilities
the
any
fi¬
rather
simply transferring debt from
party to another.
The latter
does not create
any new kilowatts
of
parties
to
For the past sev¬
approximately $3
years
re¬
efforts
bil¬
lion dollars of risk capital a year
have gone into the electric gener¬
ating, transmission
and distribu¬
tion facilities of the country. It is
fortunate that this has not been
of
part
debt.
the
increasing Federal
that during
our
It
is
next
a
two
will
As for
only
can
is little
invest¬
and
estimate
doubt
that
facilities
new
The job
de¬
will
is
be
and
to
do
We have often asserted that
we
we
propose
the
partnership be¬
a
Federal
propose
struction
ple have felt such
involve
transmission
be
new
generating
facilities which
or
can
provided
by either public or
private local interests.' There are,
however,
this matter
form.
some
arrangement
an
contractual
a
generally be the
Such will not
We do
case
only
that the Fed¬
mean
Government
should
those
free enterprise and that
or
ings which they
There will also be
projects in which
join in a proper
A
number
we
will
so
those
recommend.
the
effort.
common
have
already
been introduced into the Congress
and
more
be
can
all
expected,
having to do with individual hy¬
droelectric
these
plants.
anticipates
interests
The
that
best
the
of
be
million
a
policy
our
which are being
joint participation are,
opinion, sound. There are
faults in many of them, such as
too high cost per installed kilo¬
in
for
our
watt
of
from
load
ket
generation,
know
would
you
with
too
remote
centers, doubtful mar¬
other hazards which I
and
if
you
be
concerned
financing the
were
work.
Plan Is Beginning to Pay Off L.
It
seems
our
new
ularly
apparent
the
to
that
me
policy and partic¬
power
Administration's
atti¬
tude of encouraging local interests
provide generation of their
beginning to
off.
pay
own
In
the
Pacific Northwest alone there have
new applications for licenses
develop hydroelectric power
totaling someplace between 3 and
to
4
local
million
Government
provides
the
kilowatts
capacity.
these
The
billion
them
dollars.
will
of
installed
estimated
installations
will
Probably
not
built
be
of
cost
exceed
all
but
a
of
cer¬
tainly
some of them will. I men¬
tion the Northwest not because it
is
the
only
place
local
interests
are
planning to supply their own
needs,
but
principally because
here
to
is
one
that
area
think of itself
pendent
as
had
come
basically de¬
Federal develop¬
dependence upon Fed¬
appropriations and Federal
upon
ment. That
eral
control
and lack
of local respon¬
sibility and authority is changing
and
I
consider
As you
this
for the good.
perhaps know, the De¬
partment of the Interior recently
appeared before Congress and rec¬
ommended
the
authorization of
the Upper Colorado River
Project.
This is a multimillion dollar de¬
velopment to
conserve and use
the
water of the Colorado River
scarce
will
provide all of the
money needed to finance the costs
allocated to power while the Fed¬
eral
will
proposals
made
actually
can
we
bills
of
number of
a
generally north of Arizona. It in¬
cludes reclamation, municipal and
industrial
trol and
of
use
water, silt
development.
power
con¬
The
money for irrigation, flood con¬
hydroelectric power plants are
trol and navigation.
The capital'
spread over a wide area and it is
costs of any Federal investment
proposed that the Federal Gov¬
in irrigation will be returned
by ernment interconnect with a
back¬
the local interests from collec¬
bone transmission system.
When
tions
from
irrigators or power the
House Committee was recently
sales.
reviewing this project, a proposal
An excellent illustration of such
was made
by all of the investora
project is that
one
proposed by
two irrigation districts in the San
Joaquin Valley of California. This
is known
and
the Tri-Dam Project
as
is
sponsored by the Oakdale
and South San Joaquin
Irrigation
Districts.
It
is
estimated
to
cost
approximately $55 million and the
districts
funds
propose
for
the
which will cost
million
bonds.
from
to
provide
power
the
facilities
approximately $44
the
sale of
revenue
Their
Congressman
has
introduced legislation which will
authorize the Federal Government
to
participate
in
this
project
by
contributing approximately $1
million
benefits
to
for
pay
flood
control
advancing, interestfree, approximately $10 million to
provide for irrigation facilities.
and
districts
will
repay
to
the
and
revenues
from the sale
of power.
advantages.
ment, if it
work
the'
of
have
electric utility companies
operating in the several states ta
build
all
project has
many
The Federal Govern¬
the
of
feeder
transmis¬
sion lines at their expense, to con¬
tract for the purchase of all of
the power
viding
their
from these plants,
the cost does
own
not
pro¬
exceed
generating eosts in
powerplants, and to take
of all preference customers
-
steam
care
in
the
economic
cumstances
the
to
Federal
proposal
new
is
under
area
,be
cir¬
prescribed
Government.
by
This
in
keeping with the
policy of the Admin¬
power
istration and will have the effect
of
relieving
the government of
expenditures for feeder
large
transmission
assure
which
the
of
a
is
lines.
a
It
for
market
necessary
economic
will
the
also
power
prerequisite
success
of
the
entire project. The proposal of the
power
not
companies
been
and
has,
adopted
nor
of
course,
can
if the Congress
it be
author¬
izes'the entire project. However,
the* proposal does illustrate that
is
were
there
$55
theory and a pTace for local enter¬
prise in Federal development.
undertaking the
itself, would have to finance
entire
owned
until
This kind
also
instances,
we
handle.
can
gressional appropriation.
in
which
will encourage in every
way pos¬
sible local interests in undertak¬
eral
and,
under¬
projects
cannot be provided by local pub¬
projects which can
only be undertaken by the Fed¬
some
Government
docu¬
and, to the
extent that the term "partnership"
has this implication, it is unfor¬
users
of
Government
in
of power development. Some
peo¬
lic
It
been
favor of
local interests
take
installed capac¬
an
to encourage this kind of
project.
I must warn you that not all of
is
eral
well above $100 million
run
kilowatts.
to
tunate.
affairs.
own
project offers, I
excellent opportunity
ity of from one-half to
big
new
projecl^, we do not
to^fecommeh^ the con¬
them
en¬
tween
an
their
of
and will have
so
and
people will have free¬
are
that investor capital must be
in
in¬
of ap¬
one
great many other projects that
under consideration. Some of
a
greater
even
we
for
the
years,
be
heavy indeed.
are
intial
expected
Federal Government this $10 mil¬
lion out of collections from water
Are Proposed
reasons
sure you,
this
in
power
great that it will
cooperative
I
/
for risk capital and it is
typical of
de-:;
increased
electric
so
meet the needs.
The
What New Federal Projects
financial men, will
ciate.
In the first
nancing
all
The
appropriation
an
handle
kind
believe,
very
H
are
available
How¬
trying to sell these properties and
contrary to what I have
particular which I
much
State
Again, may I emphasize that the
Department of the Interior is not
any
responsible
the
Administration
as
Department
wholly
in
by
of
of
no
Administration
and
is
' The
resources.
are
to
one
originally planned to build the
dams, powerhouses, canals, etc.,
lines
body, such
a
isolated
some
These
in with
for
country is
quire the
may
Federal Projects
lines
somes
mand
ment of
What
State.
respon¬
it
a
velopments.
to
This
better opportunity
to participate in these power de¬
are
only two of the most
apparent difficulties involved but
dom
local
just that.
that
some
a
have
tion.
transmission
responsibili¬
have
We
tal may
couraged
exception, is that if
sible public
authority
make
-r
Under the proposed
only
local
and
or
com-,
any
the
r
■'
>
proximately $11 million. Owner¬
ship of the project will be local
strong desire
healthy atmosphere so
a
in the law for selling those proj¬
ects without such special legisla¬
"For Sale" sign on any of
these large properties.
The one
exception to this rule, if it be an
eco¬
The
In¬
it prac¬
authorized -just said.
electric energy which can be
sources.
the
of
a
and
of
say
consider
being built.
Laws
as
will
of the large multipur¬
dams
member
development
I
appropriate
for
the
Federal Government to undertake
statement
the
question
or
the
Reclamation
now
Department
does
ticable
under
Federal
owned by
Government. In an¬
the Federal
be
to
no
Federal Government
ever, I am
,
resources
is
ter
"The primary responsibilities of
the department are the reclama¬
tion of arid and semiarid lands
natural
one
which
has
frequently
raised, and particularly by
financial people, has to do with
the possible sale of electric gen¬
are
importance of
subject and because there
with the
that
to create
mands
have
the Congress and
There
plan
that local interests and risk capi¬
the
would
by
been
pose
A
know
spe¬
We do have
ap¬
proved
question
Tennessee
Valley Author¬
ity is an exception to these re¬
marks
as
it
has outgrown
the
basic concept of generating power
as
a by-product of flood
control
and navigation. It has undertaken
to supply the entire power needs
of
I
with
plications which would
well nigh impossible for
but there
President.
two
■
volved will be
interest to successfully undertake
the work.
thereafter
reimbursement,
in
'
•
,
«
ate the plant.
dams
States and with other
more
that
full
cific
The
pos¬
multipurpose
with reservoirs located
make
by-product of
primary purposes.
connection
matters.
no
large
very
ments
facilities
many
in
be
difficult and the Federal Govern¬
This statement
example of this is the Upper
River
Basin
develop¬
ment which our department re¬
cently recommended to the Con¬
gress. In this case there are some
Federal Government which would
had
generation as a
these additional
to
seem
River,
remote, of having
these three states join in such an
effort. Then, even if they did and
if they made a proposal to the
questions, but like every¬
thing else, it deserves some ampli¬
Government
Federal
Colorado
even
fication
the
the
would
sibility,
(to include power
mitted
au¬
body created by these
acting in unison. In
or
view of the great divergence of
opinions regarding the division of
about
of the
for
states
ever,
The Implementation
of
California,
Arizona,
between
or
controls
Dam
agreement
an
states
electric
of
in any area, basin, or re¬
gion. In general, it will not op¬
pose the construction of facilities
energy
to
reach
and
proposal
is
"It
Hoover
possible purchaser
project would be some
three
phasize those multipurpose proj¬
ects with hydroelectric develop¬
of
the
only
this
of the Federal
end
that the mat¬
which the benefits from this proj¬
ect are divided.
In fact, I think
the
ments, which, because of size or
complexity, are beyond the means
of local, public or private enter¬
the
the
Nevada,
generating facilities in hydro
projects
under
its
jurisdiction
Government.
to
thority
are
an
generating
among
of
when such facilities
example,
truly academic
a
assume
selling
its
essary
off."
pay
of
us
As
facilities to
be under consideration. To begin
with, there is no "For Sale" sign
on Hoover Dam.
However, if there
were, it would certainly be nec¬
ownership be
by private in¬
vestors, local
public bodies
At
Let
with
Expresses approval of partnership between
Federal power policy
consider
me
case.
Federal Government and local interests in power development
as illustrated by the Tri-Dam Project in California.
Holds new
position
our
be
generally im¬
practical to consider the sale of
Policy
Under Secretary of the Interior
private interests.
it would
An
Colorado
for
reason
additional
any
-
to
million
by
Con¬
lit
would
appropriate
funds
every year to maintain and oper¬
a
sound
Again, I would
investment
basis Mfor
urge you
opportunities
field of electric
power
our
to seek
in
the
with local
Volume 179
Number 5314... The Commercial and Financial Chronicle
business, both public and private.
the subsequent-four years.
I
items
would
also
you
to
seek
invest
in
new
urge
opportunities
to
projects that will add to the Na¬
tion's
supply of power or better
distribute it to more customers.
It
is
a
growing
kilowatts have
term
industry and
excellent long-
an
market.
They
not
are
luxury item but
are
the
functioning
day
every
a
to
and
necessary
growth of this country. The end
of this vast growth in this
par¬
ticular field
Today
is
nowhere
only
we
have
in
a
sight.
narrow
national surplus of about 6% and
this is not enough.
It will not
take care of a single year's growth.
the overall
in
Major
program
Everett
the
capacity.
Pennsylvania Power & Light
and its subsidiary, The Scranton
Electric Co., supply electric serv¬
to
an
of
area
10,000
a
Furthermore, it is spotty as to
geography.. Many areas have no
$14,000,000.
Federal
current
amount of
principal
due
that
on
on
amount
of
Arch F. Montague
will
notes
been
have
DES
retired
money for the further
development of this basic devel¬
nati, in the Trading Department,
passed away March 31.
stantial
Arch
if
loan
opment with
maturities
F.
associated
Montague,
inflow
into
cash
of
J.
Assistant Secretary,
Walker,
Assistant
At
the
board
of
Realty Assoc.
annual
meeting
directors
of the
the
can
Stock Exchange
ciates,
Inc.,
an
50 years.
This somewhat longer
period than is normally customary
as
would
be
in
keeping
period
payout
the
adopted for Fed¬
and
would
make
eral
projects
local
financing
Perhaps
other
with
attractive.
think of
more
you
features
may
of
financing
in
this field which would be helpful.
I
to consider them and
urge you
particularly
in
very stability
investment.
light
the
of this kind of an
; This Administration has
damental faith
been
fun¬
a
FROM GULF OIL'S
in free enterprise.
We believe it has to
extent
the
of
a
large
very
responsible
the
for
great growth of this Nation. At
the same time we are well aware,
I
as
sure
am
have
been
time
time.
to
cesses
in
are
doned,
been
changes in
in
this
you
basic
subscribe with
can
incentives
that
believe
the
to
us
have faith in local
local
initiative
responsibility,
where
cases
Federal
insure
You
do
can
in
alone
in
increasing
sibility.
this
local
.....
178,509,631
181,729,800
177,281,246
170,055,548
Reserves
.
,
24,851,959
,24,201,044
f.
36,019,340
35,245,198
Capital shares (24,541,943 in
1953; 23,598,120 in 1952)
613,548,575
589,953,000
37,791,668
22,690,500
.
.
current assets
.
$
.
$
377,578,794
$
.
.
127,717,313
128,940,946
.
Other capital
.
.
Prepaid & deferred charges
890,538,173
823,005,470
11,622,412
12,226,899
.
respon¬
TOTAL ASSETS
i::.H
Pa. Pow. & Lt. Stock
/
.
:/
...
.
.
.
...
of
stock
common
at
$39.75
of
aggregate
shares
rate
of
of
business
share
held
of
at
each
for
the
&
Co.
an
the
>qrrt
REVENUES
.
EXPENSES:
hi
1952
products and other
merchandise
.
.
.
Operating, selling, and administrative expenses . .
Taxes, other than income taxes ,. .
.
.
.
.
.
•
Depletion, depreciation, amortization, and retirements
boriv
seven
••f fty
April 2,
warrants ex¬
$1,539,154,673
,
Purchased crude oil, petroleum
<
zai)?AV<
$1,652,893,769
•
Interest
665,355,761
$
31,570,513
138,831,004
4,972,873
103,790,561
....
$1,477,857,633
175,036,136
$
NET INCOME
purchase from
any
unsubscribed
$
533,336,921
.
......
Estimated income taxes—U. S. and foreign
will
company
475,874,189
$1,627,279,394
'
NET SALES AND OTHER
c >
Subscription
pire at 3:30 p.m. on April 19, 1954.
A banking group headed jointly
by The First Boston Corp. and
Drexel
.
1953
record
1954.
565,024,141
$1,765,747,853
.......
TOTAL LIABILITIES
of
additional
stock
common
one
shares
share for
per
=704,917
.
Consolidated Income Statement
Pennsylvania Power & Light Co.
are
being offered rights to sub¬
scribe
.
......
Offering Underwritten
Holders
.
310,002,539
Earnings retained in the
$1,627,279,394
$1,765,747,853
.
i-.'.-Hv
....
Deferred income.
664,329,712
$
734,646,322
long-term
Properties, plant, and
equipment (Net) .
particular
your
Long-term debt
receivables (Net)
great deal to assist
a
164,378,006
.
can
effective
and
329,896,158
179,786,282
Investments and
the
of
resources
economical
action.
field
the
Government
Total
in
except
297,585,663
......
Inventories
and
$
.
Receivables (Net)
the acceptance of increased
urge
$
Current liabilities
Cash & marketable securities
creative
economy. We
our
1952
1953
1952
1953
inspired
imagination in
•
Liabilities
Assets
philosophy.
philosophy, but I
•
Consolidated Balance Sheet, December 31
not
any
responsibility
large
a
1
-
ex¬
con¬
certainly
justify
to
our
have
these
to be
way
#
from
excesses
have
as
1953 ANNUAL REPORT
that there
are,
While
no
they
such
You
you
some
619,493,767
506,203,097
31,686,172
128,994,786
.5,031,328
105,925,195
$1,397,334,345
$
141,820,328
shares.
Since
the
April, 1953, dividends
stock
common
creased
to
50
have
cents
on
in¬
been
share
a
Operating Highlights
in
July, 1953, and to 60 cents a share
in
April
of
the
present year.
issuance
additional
of
ger
Daily
Crude oil
mer¬
of The Scranton Electric Co.
the
into
the
Net crude oil
common
stock in connection with the
Pennsylvania
latter
utility
have
Refined
out¬
consist
term
sory
of
$193,500,000
debt; $21,600,000
in
barrels
average
at
average
.
.
.
........
refineries—Total barrels
barrels
.
products sold—Total barrels
Daily
standing 5,694,070 shares of com¬
mon stock. Other capitalization will
produced—Total barrels
average
processed
Daily
company,
will
1952
1953
Giving effect to the current of¬
fering to stockholders and to the
barrels
....
........
269,168,000
252,306,000
737,447
689,360
181,294,000
182,118,000
496,696
.
497,591
203,576,000
200,287,000
557,740
547,231
long-
In promis¬
notes; 760,649 shares of
pre¬
ferred stocks.
Proceeds
offering
struction
$8,000,000
loans
from
will
the
be
purposes
in
incurred
stockholder
used
and
for
to
con¬
Oit
pay
vr-j-
outstanding
for
construction.
The
companies contemplate, fur¬
ther expenditures approximating
$33,000,000 in 1954 and $114,000,000 of additional outlays during
\
bank
sd
A
??
•>
*'
>
i
4
'io
iter*
.i
r
Ti\
"
of the
Ameri¬
American Stock Exchange,
much
as
Landstorfer,
Realty Asso¬
affiliate of the
David
MOINES, Iowa—Theodore
C. Henderson on April 15 will U. Page was reelected President.
acquire a membership in the New Frederick J. Roth and Christopher
York Stock Exchange, and T. C. Hengeveld,
Jr., were reelected
Henderson &
Co., Inc., Empire Vice-President and SecretaryBuilding, will become Exchange Treasurer, respectively. Joseph R.
member corporation.
Officers of Mayer was reappointed Assistant
the firm are Theodore C. Hender¬ Treasurer, and James R. Dyer was
son, President; Stacey R. Hender¬ reelected a Director.
Be NYSE Member Firm
to date this year
with W. H. Hutton & Co., Cincin¬
I have often wondered
„
can
.
A. S. E.
March
you
surplus.
branch.
or
T. G. Henderson Go. lo
the
without refund¬
ing.
Retirement of the bonds
without recourse to refinancing,
Mr. Smith said, reflects a sub¬
■,
Thomas
Vice-Presidents; Orval D. Penn,
Assistant Vice-President; .E'ugene
have been reduced to $104,000,000.
payment of the April 15, 1954,
maturity, a total of $309,500,000
.
Shreve,
redemption of the
$111,000,000
and
date
Secretary; Eli A. PetersonD. Kaufman, Kenneth C.
son,
P.
Kearns,
April and
Helen
issue, outstanding consolidated: Treasurer.
note obligations of the banks will
notes in the principal
of
$198,500,000.
Upon
1954,
15,
in
notes
Bank
21
Glenn
15
April 15, 1954, will
at maturity without
resources
the beginning of the
result of repayment of
Reserve
Upon
refunding. On Feb. 15, 1954, the
banks
similarly redeemed from
operating revenues for the
1953 totaled $106,000,000 and
was
due
be redeemed
The companies are part of
net income
the
outstanding $100,000,000 of
notes, 2.875% series
B-1954,
square
Jersey, Delaware, a major portion
of Pennsylvania and the
Balti¬
more-Washington area.
Consoli¬
year
that
announced
a
an increase in deposits.
Principal and interest on the ma¬
turing notes will be paid at any
consolidated
large power pool serving New
dated
5
as
loans and
Smith, Fiscal Agent of
Home Loan Banks,
April
bank's
miles in central eastern Pennsyl¬
vania.
year
Federal
on
since
banks
FHLB Retiring Noles
in¬
clude the installation of 415,000
kilowatts of additional generating
ice
(1549)
A limited number of copies of
Gulf's 1953 Annual Report are
available upon request to P. O.
Box 1166, Pittsburgh 30, Pa.
r
22
V"'
(1550)
The Commercial and Financial Chronicle... Thursday, April 8,1954
'//'/'//S''
t
:
\
used
He
Most
Important People in 1954
good merchandising organiza¬
tions, rather than in railroads or
industrial promotions. A merchant
with a fair turnover has nothing
and
fear
to
important people. Points out value of honest advertising, and
need to be cultivated the same as
schools for local sales clerks.
Automobile
invest your money
or
Retailing Faces
in
because of their function to create con¬
demand, sales clerks and advertisers are the year's
customers
merchant
a
Mr. Babson contends,
says
me: "Roger,
either become
to say to
when you grow up,
By ROGER W. BABSON
sumer
i
By CHARLES C. FREED*
make
always
can
President, Freed Motor Company, Salt Lake City, Utah
President, National Automobile Dealers Association
money."
But, my father was a
good worker at the store from
7:00 a.m. to 6:00 p.m., six days a
crops.
Recommends night
Era of Sales Pressure
f
Spokesman for automobile retailers, after pointing out impor¬
of autos in field of retail credit, warns a new competitive
week.
tance
President
Eisenhower
his
and
at the counters of the stores. Pros¬
Cabinet will not be the most im¬
perity
portant people of 1954. The Sen¬
ators and Congressmen will not be
the most im¬
the salesmen and sales clerks.
or
depression
starts
What About Advertising?
ple
peo¬
of
1954.
And this
same
statement
be
can
made
re¬
garding bank¬
other
and
ers
big shots. Con¬
often
ditions
I
am a great believer in honest
advertising. A merchant's success
is very dependent upon his ad¬
vertising.
Advertising bears the
same
relation to profits for the
merchant
fertilizer does for the
as
farmer.
Still, the farmer cannot
depend solely upon his seed and
fertilizer.
He
must
and gather his
cultivate,
make
spray,
cannot
ing. Although advertising is ab¬
solutely necessary and much more
presidents,
but
presidents
make
of
conditions.
most
The
important
people during
1954 will be those now employed
Roger W. Babson
as
and
salesmen,
especially
In
sales clerks in your stores.
The
the
pre¬
vious years these people have not
been
so
important; they served
largely as "order takers," wrap¬
ping parcels and making change.
But, conditions in 1954 will be
should
it
is
same
of
true
be
crops.
used
advertis¬
in
1954, yet
merchants cannot expect it to take
the place of hard work. Custom¬
need to be cultivated the
ers
as
do crops.
same
Advertising will help
get people into the store and in¬
them
terest
the
but
man or
My
in
sale
woman
Father
certain
be
must
products;
made
by
employee.
Was
Storekeeper
a
Customer
Every
was
has
era
deacon in the
local church; he had a large Sun¬
day School class.
He was very
much interested in knowing and
My father
.
portant
Knowing
with
in automobile distribution.
come
tivity ahead, but
a
loans on cars. Stresses soundness of present retail car
financing, and points out role of automobile industry as a
of business prosperity.
cornerstone
helping people.
There were no
things as card files in those
such
As
-
but he kept
days;
book listing
a
automobile dealer typify¬
an
the children of each customer and,
ing so-called small business in
especially, listing cases of sick¬
ness.
Then, there were no trained
nurses.
Neighbors would volun¬
teer to "watch" at night with the
sick, accepting, of course, no pay.
Every week my father would be
away some night watching by the
country, it is
of
husband
bedside
of
the
humble
this
the
with
get
the
constantly check on the clerks—
by asking: "Did you make a
sale?" but by asking: "How many
but
his
Against Businessman
I
y
Complacency
I don't think that any
ca-
and merely
-
e
Asso¬
and
truck
nation. There¬
hold the
fore
that
bile
THE
FIRST NATIONAL
BANK
their
local
sales
clerks,
purchasing would
there
need
the
•
national
of Business March 31, 1954
money
RESOURCES
$137,399,130
Loans and discounts
United States Government securities
179,747,825
Stock of Federal Reserve Bank
3,900,000
Municipal securities
41,871,332
Other securities
84,234,588on
Acceptances
out¬
1,500,000
Banking House
4,127.400.
$687,899,411
$ 30,000,000
12,548,563
$142,548,563
1,500,000
20,000,000
taxes and assessments.
5,095,318
Acceptances outstanding
1,500,000
...............
$ 37,743,707
Banks
395,988,892
/
•
the
in¬
been
their
of
this
year's "Bawl Street Journal," the
annual satire of finance and
tics, to be published
the
Club
Bond
as
a
poli¬
feature
Field
Day on
this oppor¬
print has
spurred humorists of the financial
June
4.
tunity
Once
district
a
year
unbend
to
to
in
their finest efforts
should
sent
be
den,
Stone
Street
Editor
John
to
Straley at the. "Investment Deal¬
Digest." Cartoons, poetry, and
editorials will not
The
off-jDeat
'
be accepted.
humor
of
the
"Bawl Street Journal" has spread
the fame of the paper through the
517,255,530
$687,899,411
snapped up more than 37,000 ^cop¬
ies, lifting" circulation to am alltime high.
a
F. K.
U, S. securities pledged to
secure
qualify for fiduciary
and for other
powers
public and trust deposits, to
by law, and loaned against other collateral
purposes, as
required
F. Kenneth
ist
in
$73,335,634
away
Member Federal Deposit Insurance Corporation
Stephenson
Mr.
-
Stephenson, special¬
municipal
bonds,
passed
March 31 at the age df 63.
Stephenson. had
been
asso¬
ciated with Blodgett & Co., Stone,
Webster
man,
&
Blodgett,
Sachs & Co.
and
Gold¬
more
important
every
day.
role
in
America
The automobile is be¬
on
in
of
most
which
return
The
our
family receives
v
■
on
the
average
its investment
Automobile production was high
people who make
the selling force of this nation. in 1949, 1950 and 1951. Over 21Production, after all, is only in¬ million new cars and trucks were
ventory until sales are made. Dis¬ manufactured in those three years
tribution and selling will be the alone,
a
fabulous achievement,
cornerstones of business prosper¬ thought to be impossible by the
saturation-Doint experts back in
ity in 1954.
situation, the retail auto¬
business,
volume
the
the
of
because
tremendous dollar
repre¬
is of first importance
sented,
on
the business'scene.
'twenties.
Based upon
tices
of
their
cars
Credit
the customary prac¬
buyers to trade
new-car
two to five years,
a
strong replace¬
The
cars
which
every
1954 should
Autos in Field of Retail
see
market.
ment
have
been
produced in the past
becoming obsolete
buying of an automobile repre¬ faster, because of new develop¬
sents the average person's biggest ments in our industry, than in
any
investment.
You know how great previous
period* since the selfa
percentage of these major in¬ starter became standard
equip¬
Next
•
home
to
vestments
purchases/'the few
result in
finance
busi¬
ness.
So—our
truck
retail
automobile
and
industry
definitely com¬
prises one of the largest origina¬
tors of instalment credit buying.
In this sense it is
Accordingly,
we—your business
and mine—have
which
is
academic.
I
real
more
than
'
economist.
banker
a
But
I
do
nor
know
an
that
the great retail automobile indus¬
is
try
the
key
to
our
country's
immediate economic future. What
the
automobile
dealers
of,
this
give
away through unsound merchan¬
dising or unsound credit terms,
but what they can sell at a legiti¬
mate profit on sound credit terms
—will determine, more than any
other single factor, just how well
country
off
we
I
am
how
be
can
sell
—
sell,
will all be in
not
gineering triumphs such as auto¬
matic transmissions, power brakes,
power steering, new safety—new
styling, improved
motors — all
these achievements
automobiles
are
driving
car
as
is,
we
must
realistic about the standard by
a
transform¬
are
until
today
you
truly new postwar
with six years
compared
ago.
public
The
vent
these
wants
provements—and
we
must all
im¬
pre¬
psychological fear of the fu¬
from
becoming too real a
If we do this, the public
buy new cars because they
ture
factor.
will
want
the
benefit
these
of
out¬
standing developments.
*
The Replacement
Market
'
Another great replacement mar¬
ket is
older
represented bv scrappage of
models.
Thirty-four per
cent of the 54-million motor vehi¬
cles
1954.
certain that in measuring
good i business
are
I refer to those proved en¬
ment.
f
neither
am
mutual interest
a
much
years
ing
big business.
1
A/ »
ers
optimistic about busi¬
ness for 1954—not blindly optimis¬
tic, but optimistic because the
family automobile is playing a
are
and faith of the
for
Committee, at Hay& Co., or to "Bawl
Journal"
new-truck
and
new-car
up
creative
benefit
We
dealers
Now the story is different. To¬ in an automobile is one of the big¬
the
high
day, production must take second gest contributions to
place. The future, of our economy standard of living we, as a nation,
depends upon the skill and ability enjoy today.
>In this
48 States and many foreign coun¬
tries.
Last
year
eager
readers
83,522,931
All other
exercise
for
Publication
Bills payable
Deposits: U. S.
talents
have
been
headliner
mobile
WicRRffe Shreve, Chairman of the
Dividend payable April 1, 1954.
Reserve for
vited. to
Contributions
100,000,000
Undivided Profits
circulate
often.
publication, with authorship dis¬
creetly cloaked in anonymity.
•Feature-length news stories,
short news items, and ads may be
submitted up to Monday, May 3.
LIABILITIES
Surplus
Wall Street wits
of
standing
Capital
will
more
For Bawl St. Journal
235,119,136
Liability
have
we
freely and
Wits Invited to Write
Cash and due from banks.
Customers
more
but it needs more confi¬
dence and friendliness so that the
more
State and
need
money,
Report of Condition
At the Close
not
when
a year
thinking and planning.
no
unemployment,
budget could be bal¬
does
they
coming increasingly essential—as
in this
the most casual look around any
production.
town or city or country road will
Shortage of goods in virtually all
reveal.
consumer
lines made production
has
country
anced, and taxes could be reduced.
America
going to be
major importance in the
assume
increase that
so
on your
nation's economy.
For years, the emphasis
be
the Federal
OF THE CITY OF NEW YORK
operate
schools for
have the retail automo¬
you
as
where I live ther^ are plateaus
and valleys as well as high peaks.
appropriate
industry represented
This is
bers of Commerce would
night
most
seems
Freed
distribution and selling once again
A Suggestion
led
C.
Charles
program.
I forecast that if all the Cham¬
properly
it
accept things
be successful today, he
fight constantly to build and
expand his business. By all means,
let's start gauging our business re¬
sults by a yardstick which reflects
normal,
rather
than
abnormal,
record-breaking peaks.
I come
from
mountain
country — and
must
ciation, I rep¬
resent
34,000
new
business¬
complacent
become
come—to
National
new-car
should
man
As
.
Automobil
Is there
funeral
that each year
previous record-
adopt such reasoning.
dealers of the
at
not
all
breaking years in production, in
sales, or in profits.
We will and
here
Dealers
illness in the family?" He not only
was
the
city's most successful
church could
exceed
should be disappointed men if we
president of
everyone
children has that woman?
i t
p a c
not
mechant,
also
am
He would
his store.
anticipating
will
A.
However,
in another
acquainted
entered
Credit
American
ciation.
customer.
truly
Instalment
of
into
Bankers Asso¬
some
Father trained his clerks to
who
National
Conference
our
honor to address
an
the
a
father
ac¬
repay
people
kept a dry goods,
who loved him and who loved all
novelty,
and
sort
of
"variety
different. They must create sales.
who
ever
worked
for him.
He
store"
in
Gloucester,
Mass.
I
Fundamentally, prosperity and| worked in this store on Saturdays didn't have a private office up a
good times depend upon employ¬ and
during winter vacations. My flight of stairs in the back of the
ment, which supplies the money to father was
stove.
His desk was by the door
very successful with
so he could say "Good Morning"
buy.
But 'manufacturers cannot
this store, starting with nothing
furnish employment without or¬
to all as they came in, and "Good
ders for their goods.
The orders and becoming the leading mer¬ Luck" as they left.
Sales
are
chant of Gloucester and vicinity. made through feelings rather than
depend upon the men and women
through figures.
My
Sees active sales
buyers have capacity to
present auto
says
on
the road today were man¬
ufactured
What
a
leaves us!
when*
before
World
tremendous
War
market
II.
this
There have been years
niany as 3,750,000 have
beetinscrapped. Some experts say
scrappage could reach 4-million
V<:
f:
;n"
4
•An address by Mrl Freed before the
units a year.
Our people must
National Instalment Credit Conference of
have transportation, so here is an¬
the American Banker? Association, Chi¬
other
great
potential
market,
cago, III., March 22, 1954.
Whichj We do the measuring. It
is: unreasonable, ffi lull ourselves
.
.»
■
as
Number 5314
Volume 179
-Recently
especially for used cars; and I can
"on
made an informal- weather,
we
off"
and
has
credit
20
prevail- in dealing
finance
with a business as established and
companies and banks, on the mat¬
ness, among our
sound
as
the
retail
automobile
The market for a second car in ter of present trends in collections (
business.
the family is going to grow tre¬ and repossessions. No doubt other
*! Let's discuss just a few impres¬
mendously in the period ahead. portions of your program here
tell
Huge- suburban
around every
city
«
We
of
second
increase
in
to
families, in
2-car
a
our
peacetime prosperity.
7
sub¬
new
-
It isn't too far fetched to visual¬
revealed
check
'Our
.
;
bankers
dealers
.
opinion that automobile financing
is in a healthy state at this time.
In no instance did our respondents
a
have
more
ties to
the
in
much
how
than
money
and how much
the
because
some areas,
better
any
in
is
you
savings
expendable income
public has,'.
So, these
feel 1954 will prove to be a good
in the retail automobile in¬
year
informed
dustry. "These are the basic rea¬
sons
which justify an optimistic
in
that
us
the
of
and
gone
cars.
produce
age new-car
looked with
it
a
biles.
lot of doubt, to put
on
self, in the automobile financing
business.
My company inherited
a
number
of
repossessions
of
doubtful make and rare vintage;
and for all
were,
practical purposes, we
unhappily then, in the newI
business.
car
since!'
ever
have
been
in
it
competition in the
financing!
Business
Today competition has definite¬
covered
wnicn
returned to the
automobile
Only
now
it's tough
and fierce, as well as keen and
spirited. However, the right kind
of competition is good for busi¬
ness—and
any
straight-thinking
businessman
welcomes
clean,
This is
competition. It brings
out the best in management, and
legitimate
public is always better served
better informed in a competi¬
Getting back to the subject of
mobiles,
financing. I noted in
report that as of August,
banks of the country did
the financing of auto-i
while - the finance com¬
panies, large and small, did 56%.
Certainly this volume of busi¬
which we dealers create, es¬
tablishes clearly that instalment
financing of automobiles is good
business—good business for banks
as well as for
all others engaged
ness,
in
rendering this service.
business
it 'has
reached
the
volume
with you, imposes, I believe, a dis¬
tinct
responsibility..
While .we
in the front line
are
sound
for
great
too
caution in granting loans can dry
up
business rapidly. I
was
certain¬
ly gratified to note the memoran¬
dum released recently to its mem¬
bers
the
by
American
to become
extension
a
wise
policy
instalment
credit.
My applause of this, statement
does not
mean
that I
advocate
loose
credit policies.
fact, in
Dealers
would
ever
In
the National Automobile
Association,
we
are;con¬
tinually reminding our ^members
how important it is to maintain
high ethical standards and sound
business practices—particularly in
financing operations.
' .
.
set,
room
clothes,
and
ducted
with
those in other re¬
ness
prior
his
con¬
investment
busi¬
in Montreal for many years*
CHASE
BANK
NATIONAL
a
CITY OF NEW YORK
RESOURCES
loan
There is
On a percent¬
Cash and Due from Banks
.
.
.
Used
today
cars
a used suit
used TV.
or
or even
a
represent the
with the
prices of new cars—just as they
represent the greatest value in
the history of used-car marketing.
True, there have been adjustments
in
used-car
selling prices this
comparison
in
history,
compared to a year ago.
to be expected—we all
as
U. S. Government
Obligations
.
$1,496,851,877.93
.'
.
.
952,080,766.27
642,394,219-40
and Other Securities
State, Municipal
60,449,310.2
Mortgages
2,294,239,736.76
Loans
•
Accrued Interest Receivable.
Customers'
.
Acceptance Liability
.
.
.
14,752,373-02
.
49,723,868.86
.
32,005,970.09
Banking Houses
Other Assets
•
.
.
.
.
.
•
6,642,116.06
•
$5,549,140,238.64
..was
prices would go
became more
used-car
krjew
dowo^.as
cars
new
plentiful. So now the adjustment
LIABILITIES
period is over, and today's prices
used
of
represent outstand¬
cars
The
bile
due
useful
of an automo¬
increased tremendously
has
to
age
engineering improvements
built into them when new and to
better maintenance and service by
dealers.
our
ber when
was
Many of you remem¬
five-year-old automo¬
a
considered ready for the
graveyard.
so today — the
that age represents
Not
average car of
many
miles of dependable
more
operation.
have
There
always been
more
buyers for used cars than for, new
cars.
So I urge that you consider
these
all
$5,048,692,485.89
Deposits
ing value.
elements
sideration
of
in
your
used-car
con¬
financing.
13,249,109-00
Foreign Funds Borrowed
Reserves—Taxes and Expenses.
Other Liabilities
.
.
31,431,176.66
.
19,278,580.21
•
57,352,082.90
Acceptances Outstanding
Less: In
7,028,039.96
i.
Portfolio
Capital Funds:
Capital Stock.
.
.
$111,000,000.00
•
.
219,000,000.00
.
.
.
56,164,843-94
(7,400,000 Shares—$15 Par)
Surplus.
•
■
.
.
Undivided Profits
Financing Essential
Used-Car
If you are
to justify the
386,164,843.94
volume
automobile
finance * business
which is yours
today, it is reason¬
of
.
$5,549,140,238.64
able, I believe, to assume that you
must offer a complete service to
the
car
not
buyer, and to the dealer—
merely expect
cream
of
the
but also to
of
to handle
new-car
the
financing,
hapdle your full share
financing, and dealer
used-car
floor-plan
financing
required.
I
mean
when
it
is
that: fair-
United States Government
to secure
and other securities carried at $473,247,091.00 were
pledged
and for other purposes as required or permitted
by law.
public and trust deposits
Member Federal Deposit
been
thereto/he
own
readily sal¬
under
greatest bargain in all automotive
Bankers
overly selective in the
of
fice
STATEMENT OF CONDITION, MARCH 31, 1954
basis, the automobile prob¬
ably has a far greater resale value
than any other product.
If you
doubt this, see what you can get
for a used wrist watch, or a used
Association. It pointed out to them
that it would not be
more
market.
always a
in any fight
financing,
is
Ca¬
Co., in charge of the Montreal of¬
men
I
bile
The importance of this
and
The
McFetrick has recently
its ranks walk side
OF THE
and
partner in McFetrick-Scarlett &
a
worst
the
of
other product.
any
This
automobile
of
Mr.
authorized
history.
our
collateral
as
year
tive market.
recent
Montreal
1953.
remarkable history.
a
merchandise
dining
1953, the
the
and new-truck dealers of
THE
forma¬
Co., mem¬
Exchanges, with of¬
they
4.60% of the
in
the
fices at 132 St. James Street West*
business,
who make up
by side
the
&
past records show that our
of
44%
of
nadian Stock
communities,
states.
by
announces
McFetrick
of
end
the
at
one
deoressions in
business.
a
bers
have held pub¬
the nation, has grown up.
The aver¬
just slightly under 21/2%, and not
quite 12% of the used cars fi¬
nanced
in
this
29-year period,
ly
and
or
their
of
age
Competition Returns to Auto
the
or
represented
and new-truck dealer
one
of the vlarge
finance
companies that through all the *
years, since 1925, the average per
cent of new cars repossessed is
All
much competition then
so
in
The retail automobile
new-car
tion
cent of the nation's new-
from
than
instalment
McFetrick
the opinion that
keen and spirited. There
in
MONTREAL, Canada —John
are
used
financed
cars
able
wasn't
Own Firm in Montreal
mem¬
them
Most of those consulted express
;/V,
Back in 1925,
of
At the end of 1953,
1952.
retail end of the automobile busi¬
ness was
10
cies and repossessions are
financing automo¬
At that time, I was, my¬
mildly,
half
than
office
counties
They met payrolls which
into the billions.
active
are
1
John McFetrick Forms
and
of
1
1
community organizations
dealers hold
lic
the
while delinquen¬
going to
It is interesting for me to re¬ be slightly higher, they anticipate
member that I owe my entrance no abnormal delinquency ratios or
into the automobile business
to abnormal repossessions by com¬
instalment financing.
Back in the parison with the norm.
'twenties—dare I say—most banks
It is most interesting to learn
view of what's ahead.
car
They employ, regularly, more
people.
total
four per
the public than have
which
dealers
civic
serving as officers or directors of
these community groups. Thirty-
.
invested in their; facili¬
serve
of
'
this company
had repossessed only
used
bers
—more-,
to
helping to
are
'
dealer's outstand¬
Eight out
They, too,
make America great.
lead¬
to repossess only
cars financed
they had
1952,
3.18%
sound reasons to
are
As for used cars,
new-car
civic
1952. 7
in
volume handled
of the
else
one
today
spected business and professional
conscious, I know, of
community life.
many
as
contributions
ing
automobile
•
factories
-
know
'here
and
the automobile
picture is impressively dif¬
ferent now.
It will surprise you
to know that the
new-car
and
new-truck dealers of the nation
.
each
creases
as
days,
upon
than
more
groups.
bankers
ers, you are
The
million
first-time
buyers * indicate any alarming trends. One
of the largest companies reported ;
year—when you consider the
that
automobile- accounts;
both
way our population' is increasing
new and used, which involved de¬
and will continue to increase..'
linquencies over 30- days were
only .95 of 1% $s ot Jan. 31, 1954,
Aute Buyers Have Capacity ;
compared with .84 of 1% on Jan.
to Pay
31, 1953. This same large com¬
I know I do not have to tell you
pany told us that on an accumu->;
that the capacity to pay for auto¬
lated basis, repossessions of new
mobiles is just as great as it has
cars
at the end of 1953 of cars,1
been, despite unemployment in-, financed in 1952 were but 1.02%
ize
early
looked
business
in
been
years.
As
business.
our
tomorrow."
general
a
about
the
in
Back
State
Healthy
never
facts
sive
Financing in a
Automobile
car.
the/number
subject.
will deal with this
creating the
a
forward
look
can
stantial
car
developments
are
need and desire for
should
spot check, among leading
busi¬
members, is good.
the used
now,
you
23
(1551)
Chronicle
The Commercial and Financial
.,.
Insurance Corporation
24
The Commercial and Financial Chronicle... Thursday,
(1552)
&
Merrill
Lynch Group
Underwrite Safeway
Stores Offering
Relaxation of British
Exchange Control
By PAUL EINZIG
tions
on
on
feeling by the British authorities that the
a
undertake this risk, which is incomparably
Sees possibil¬
ity that Britain might lose gold, but finds the expanded Sterling
Area, where full convertibility prevails, is now isolated from
the dollar
LONDON, Eng.—The announce¬
made on March 18, about
ment,
substantial
a
restrictions
relaxation
of
the
sterling and
dealings
on
on
in
gold, came as
a
complete
surprise,
Apart
from
which
rumors
in
were
cir¬
culation
ing
dur¬
the
hours
24
that
the
preceded
announcement
—
as
of
result
a
leakage
of
information
the
on
Dr. Paul
of
Einzig
the
ernments
whom
Central
and
the
B
i t i
r
communicated
the
last
kept
it had
intention
minute—it
secret.
of
be
may
was
a
in
said
speaking
assumed that
the
to
well-
very
Generally
been
laxation
Banks
control
the
be
American
whether
the
ernment
would
action
felt
United
against
parently
in
the
tion
Gov¬
drastic
any
slump. But ap¬
British authorities
a
sufficiently strong
a
relaxa¬
a
Even
the
other
hand,
doubtedly great advantages. Their
existence was highly detrimental
to the prestige of sterling. Multi¬
ple exchange practices have long
been
denounced
"Schachtian
as
devices"
unworthy of a country
of first-rate standing.
It is true,
even under the new system there
is more than one type of sterling
quoted.
But the change consti¬
tutes
considerable
progress
to¬
wards the unification
tation
of
The
possibility
be
of
the
must
will
buyers
of
situation
in
selling their sterling
In this respect the
it
as
of
sterling
wide
a
obtain¬
was
Sterling
Transferable
The
so
bare
a
do
to
however,
is
with
long
point
two.
or
though the risk involved
is
the,free gold
likely to entail
not
loss of gold
any
tered
by the authori¬
ties.
lar, there
balance
as
is
Britain
result
a
possibility that
a
might
ling
in
the
holders
of
countries
Area,
Persia
Under
all
arrangement
Dollar
lose gold
that have
of the steps
just been taken.
on
other
new
ster¬
than
Egypt.
the
Hungarv,
and
come
Turkey, will be able
sterling between
other. Sterling has now be¬
fully convertible m an ar^a
that
includes
to
British
the
whole
of
the
Commonwealth, the whole
of
Europe with the exception of
Hungary and Turkey, the whole
of
Asia
Persia
with
and
whole
tion
of
On the contrary, it is likely
to lead to the opening of "Regis¬
of
of
Africa
Latin
exception
Asiatic
Egypt,
Turkey,
with
and
the
the
excep¬
large
a
of
part
America.
This
Area,
the
„
it is
Account"
called, includes
now
hard
currency
countries,
such as, for
instance, Switzerland.
As a result Britain is now
exposed
to
drain
a
sterling
tries
soft
the
acquisition
soft
order
the
to
use
currency
currencies.
that
ger
in
by
for
h: rd
through
coun¬
of
There is
is
account
cally
able
to
secure
The
amounts
of
all
into
they
curtail
may
from
Britain
Area.
This
limited.,
the
such
danger
the
is
full
demand
a
is
potential
be
if
these
unduly
smaller
demand
sterling
because
extent
for
not
incomparably
to
Or
imports
Sterling
relatively
however, partly
currencies
would
exports
of
hard
large—
than
for
the
dollars
were
made
to
be
fully convertible
and
partly because sterling itself has
—
been relatively
past year
sire
of
or so.
the
scarce
during the
Even so, the de¬
Transferable
Area
coun¬
Dec.
The New York Stock Exchange
1963.
1,
food stores
April
on
will
15
consider
transfer of the Exchange
(2,037
ship
31, 1953) in 23 states, the
Head
of
the
Lock wood
Frederick
late
of Condition
,
of March 31, 1954
LIABILITIES
ASSETS
.
Cash, Gold
Due
and
Banks
from
U, S. Government Obligations
Obligations
of
Agencies
.
.
$1,464,711,887
1,370,412,757
,
.
567,961,965
Other Securities
.
.
.
.
Due
to
Discounts
and
Real Estate Loans
Stock
in
$58,995,198
Portfolio
31,941,707
27,053,491
Foreign Central Banks
.
16,414,300
Transit
in
with
.
Branches
25,186,242
2,263,264,271
and
Customers' Liability
Acceptances
$5,326,864,855
{In Foreign Currencies)
Items
Loans
Bills
ances in
87,987,192
.
.
Less. Own Accept,
State anU Municipal Securities
.
.
Accept¬
on
ances and
27,109,676
.
...
Liability
Other Federal
.
.
Deposits
Reserves
Securities
256,916
.
for:
Unearned Discount
and
Other
Unearned Income
for
29,558,976
.
.
Federal Reserve Bank
22,119,013
Interest, Taxes, Other Accrued
Expenses, etc.
.
10,500,000
,
.
.
.
.
36,683,450
.
Dividend
of
3,750,000
International
Banking Corporation
.
7,000,000
Bank Premises
........
33,941,315
Other Assets
....
.
.
.
.
5,864,348
.
.
.
Capital
$150,000,000
{7,500,000 Shares—$20 Par)
\
.
.
.
.
Surplus
$5,868,569,303
Total
.
200,000,000
Undivided Profits
.
405,609,736
55,609,736
Total
Figures of Overseas Branches
practi¬
.
to
to secure
$5,868,569,303
London
to
be
be
able to
inflicting
currency
whether
seen
can
be
little
doubt
to
national
take
ain's
safe
to
it
a
the
Hitherto
area
much
ar¬
advantage
area
lines
in
of
case
United
were
fi¬
the
area.
way
adverse reactions to
out
a
sufficiently
large
large
Due
and
from
Banks
of Condition
as
of March 31, 1954
Obligations
of
,
•
•
1,300,969
and
.
,
Loans
and
2,439,219
i*
Municipal Securities
Advances
Real Estate Loans
Stock
in
area
and
1
Securities
Capital
,
,
,
.
$ 10,000,000
Surplus
.
,
,
.
10,000,000
600,000
.
-
.......
4,915,483
.
{Includes Reserve for Dividend $375,639)
9,508,341
.....
Federal Reserve Bank
Other Assets
Total
2,571,544
Undivided Profits
12,020,336
with¬
re¬
32,020,336
2,925,972
.........
the
stand
gold
$107,220,577
15,414,758
.......
.
Reserves
Other Federal
Other Securities
Deposits
74,991,014
Agencies
State
$ 34,404,578
,
Total
$144,156,396
$144,156,396
of United States Government Obligations are pledged to secura
Public Deposits and for other purposes required or permitted by law.
512,430,563
i
can
LIABILITIES
....
U. S. Government Obligations
Bank Premises
the strain of acting as a financial
center of such
Cash
American
an
separate
functions
a
should go
reducing
slump, provided London
sources.
Statement
ar¬
Multilateral
area
towards
i
include
they
trading within that
some
Union
Payments
wider
trust
the
arrangement and the
Now
City Bank of New York for
administration of
Brit¬
to
new
in the
defensive
sterling
rangement.
i
be¬
the potential
nancial
European
■
its
monetary machinery
slump
grave
Office: 22 Williaifr Street, New York
ASSETS
from the dollar
a
Head
Affiliate of The National
may
insulation of the non-dollar
an
area
of
that
hand, the
has
J.
CITY BANK FARMERS TRUST COMPANY
strain.
rangement
providing
tO'J
bal¬
It
equal
are
of the Board
Richard S. Perkins
will
on
result
assume
resources
On the other
of
that,
a
Vice-Chairman
with
London
months before
additional
President
remains
convertibility.
many
comes
as
corporation)
James S. Rockefeller
has become more
incalculable
inter¬
trends
increased
federal deposit insurance
of the Board
Howard C. Sheperd
ecdnomy.
sterling
ance,
It
disadvantages on
For there
grave
British
pledged
areas
area
play this part without
the
are
unification
currency
its center.
as
of March 25.
Public and Trust Deposits and for other purposes required or permitted by law.
(member
Chairman
arrangement
virtual
a
are as
$470,790,230 of United States Government Obligations and $16,926,100 of other assets
m
Chairman
: (member federal deposit insurance
|! I
of the Board
Howard C. SiiepfIrd
11cyj
corporation!
*'ri
■■
Vice-Chairman, of the Board
j
'Lindsay Bradford
(oiiv
.
R.
John Porteous II.
to
57 Branches Overseas
as
the
member¬
Office: 55 Wall Street, New York
in Greater New York
Statement
such
on
their
and
conceivable
sterling
single
a
States.
their
Sterling
non-dollar
to
Sterling Area.
N. Y. S. E.
Membership
District of Columbia and the five
Branches
70
part
new
for
increase
paid.
every
sterling for the sake of converting
it into Swiss
francs, Belgian francs
or
other
relatively scarce cur¬
rencies, will make a special effort
Britain and the
which
into
is transferable to
dan¬
a
To Acquire
be¬
or
on
THE NATIONAL CITY BANK OF NEW YORK
of the world,
and
this
may
possibly
induce
many
additional people to hold
sterling.
such
countries,
currency
be
of
stock
proceeds of gold sold by residents
exposed
"Transferable
as
some
Accounts"
abroad
transfer their
each
on
underwriting group headed
by Merrill Lynch, Pierce, Fenner
Ownership
The restoration of
incomparably smaller than the
Oct.
'>■;
market
risk of restoring the
convertibility
of sterling in relation to the dol¬
after
chain of retail
April 21, 1954.
Account
temptation
is very small,
the discount
as
purchases
Area
of
sterling.
so
if redeemed
Stock
1, 1957 down to $100.50
redeemed
American im¬
porters may pay for their British
aid
City, members of the New
Exchange, will admit
Arthur Adrian Winner to partner¬
ship on May 1.
York
adjust¬
the
52 Broadway, New
York
into
Safeway Stores, Inc. operates a
substantially
when
was
able in New York.
the
if
New York
p.m.
of
ranks
Grass Co. to Admit
share
per
to
it
the food chains in
among
Gruss & Co.,
prices ranging
at
be
inducement
an
remains
same
variety
An
on
on
doubtless
discount.
the
time
offer
subscription
$46
On
the country.
con¬
par
believes
company
of
Sterling
envisaged.
form
a
The
expire at 3:30
fore Oct.
quo¬
sold to the Dollar Area if holders
at
waived.
made
been
have
at
subject
Redemption
from $103
478
appurtenant to
common
stock
be
the
second
and
be
time at
any
common,
may
common
the
misuse of
a
Accounts
account
offer
of
at
will
A
busi¬
the basis of sales volume for 1953,
program.
stock
grocery
in and around El Paso, Texas.
of
current
meet
of Canada.
in Canada and
is conducted
sterling.
Transferable
such
of the
Rights
shares
will
the disap¬
pearance
of the various special
sterling quotations has un¬
this stage.
at
losses of gold.
On
or
States
take
enough position to risk
is
busi¬
recession would continue and
ness
acquire scarce currencies
through sterling is bound to cause
re¬
would
deferred until it has become evi¬
dent whether the
held.
some
of
shares
to
wholesale
ness
will
construction
new
ment.
share of preferred
one
13
.
course
h' authorities
s
their
that the decision
Gov¬
each
stock
the
common
of
share on
the
payment
and
of
vertible
of
Provinces
general
bank loans which
ventories
convertible
per
western
un¬
obtained to finance in¬
modernization
The
sale
the
to
short-term
costs
the
preferred
applied
company
the subscrip¬
at
price of $100.35
the basis of
for
tries to
part
Conti¬
nental
area.
tion
be
of
shares
267,000
stock
preferred
full return to sterling convertibility.
a
for
$100 par value 4.30%
strong enough to
less than
5,
purchase any
shares.
from
convertible
Inc. is offer¬
stockholders of
1954, rights to
common
April
subscribe
position is
reserve
its
record
Proceeds
Stores,
Safeway
ing
the substantial relaxation of British restric¬
sterling and gold dealings, Dr. Einzig says it indicates
Commenting
will
Beane
subscribed preferred
April 8,1954
■
President
Richard S. Perkins
Volume 179
Number 5314... The Commercial and Financial
The
(1553)
Chronicle
Biggest Stock Market in America
in
Continued from first page
a new
industrial, oil
over-the-counter is the
being Aetna Life Insur¬
Travellers Insurance, General Reinsurance,
Hartford Fire Insurance,
West Penn Power,
names
in these groups
ance,
Connecticut Power Com¬
pany, Indiana Gas & Water, Arizona Public Serv¬
ice, Philadelphia Suburban Water, Tennessee Gas
Transmission, Transcontinental Gas Pipeline and
United
Illuminating,
Texas Gas Transmission.
himself would be
or mining enterprise, the
principal market offering
expected to enter a reasonable
The continuity of any market
thus created is largely dependent upon his finan¬
cial resources and his willingness to thus risk his
bid
purely speculative securities of infant industries.
On the other hand, if an investor
is
conserva¬
ernment and State
bonds of
to
addition, practically all United States Gov¬
over
government securities, and the
100,000 municipalities of the coun¬
try are traded on the over-the-counter market.
Yes, it is the biggest securities market in the
is
In contrast there are only 3,500 stocks
bond issues traded on all of the stock
exchanges of the country.
country.
and 1,000
The
over-the-counter
market
is
so
big that
I..
Aims of All Investors Can Be Satisfied
The choice of
a
stock is, of course, dependent
the investor's objective.
If it be to take
a
flier
them
stocks that have paid
consecutive divi¬
As in Table I,
Between
The
Trading
exchange market is often referred to as
market because a stock exchange
auction
an
provides
bids
and
on
solely
is
where less active securities are
exchange, it devolves upon the stock
quite
other
have
Some
firms, of
buy or sell by, in/effect though not in
parlance, putting in an order for his own
account.
In other words, if you wanted to sell
100 shares of XYZ stock and the specialist had
strict
wheh he is
narrow.
assume
inventory positions in the se¬
dealers in all parts
a
buying interest in
of the country might
a
given security.
terest
themselves
in
"making
a
market" for
Continued
,
always be nearby when needed, to love and shelter
THAT YOU will
ability.
see
that he is provided with
the best textbooks,
stocked and staffed public
Y teachers and schools. An adequately
respected as the vital
today's battle for the minds and loyalties of men.
library. A home in which books are
weapons
—
in
THAT YOU know these
grow
to be a
things
are
essential
so
that he
may
well-informed and useful citizen, worthy of
the trust of future
generations.
60 FIFTH AVENUE,
NEW YORK 11, N. Y.
Publishers
as
of books which contribute to our progress
individuals and our strength as a nation.
This advertisement is
in
a
given unlisted security. Prospects known to the
always protect him from danger, supply food
him to the best of your
*
:
figures on more active stocks
In less active stocks the over-the-
hungry, warmth when he is cold.
THAT YOU will
—
choose to act
competition, the spread between the
else to buy that stock, he
THAT YOU will
course,
One, five, ten, fifty or more over-the-counter
dealers in different parts of the country may in¬
to
order from anyone
or
curities involved. It is his business to know which
specialist for each particular stock to create a
market in the absence of sufficient public orders
no
instan¬
wires
over-the-counter dealer-brokers in
brokers and not dealers.
not wish to
on an
other
counter dealer must find contra-orders if he does
ity in it.
cases
each
bid and the asked
marketing in a security cannot be main¬
tained, however, unless there is sufficient activ¬
traded
as
Because of
it. Genuine auc¬
tion
In those
with
private telegraph
their disposal.
York, for instance, will be doing business
them.
in
focal point for the concentration of
offerings of potential purchasers and
a
sellers for all securities listed
situation
tremendous
throughout the day with other dealer-brokers in
Boston, New Orleans, Chicago, St. Louis, Denver,
Los Angeles, San Francisco, Seattle and other
cities from coast to coast. As an integral part of
their operations dealer-brokers stand ready to
buy and sell substantial quantities of the securi¬
ties they are "quoting" and maintain inventories
and
Listed
Over-the-Counter
the
a
through
Thus many
New
of the future.
Difference
communicate
can
other facilities at
will find here many growth situations that
undoubtedly give rise to some of the giants
and magazines carry quotations on
only those few securities in which they feel the
average reader may have major interest.
Although the over-the-counter market itself
receives relatively little publicity, the same
cannot be said of the many products made by
companies whose securities are traded thereon.
Familiar examples are: Bromo-Seltzer; Pabst and
Budweiser beer; Gerber's baby foods; Kellogg's
breakfast foods; Dictaphones; Gruen watches;
Kleenex; Kotex; Niblets; Planters peanuts; Ohio
matches; The Statler Hotels; "Time," "Better
Homes & Gardens," and "Collier's" in the maga¬
zine field; Bausch and Lomb glasses; Good Humor
ice cream; Hoover cleaners; Jantzen swim suits;
Oshkosh overalls; Pequot sheets; Peter Paul can¬
dies; and Tappan gas ranges.
on
you
are
making a market for un¬
listed stocks and bonds. Most of
some
taneously
dends for 5 but less than 10 years.
will
Quotations
newspapers
common
show
Market
interest themselves in
over-the-counter
we
quite different. Here there
listed and
those
II
money.
number of dealer firms from coast to coast that
(In the case of banks, more than
larger ones are included.)
Table
.
The Over-the-Counter
169 years.
In
own.
On the over-the-counter market
and other
100 of the
his
on
own
tively inclined and is only interested in stocks
with impressive dividend records, his needs can
be readily satisfied, too, on the over-the-counter
market, for here, as Table I given below shows,
are
some
of the banks, insurance companies
corporations that have paid consecu¬
tive cash dividends for periods ranging from 10
In
25
sponsored in the public interest by The Macmillan Company
cooperation with The Advertising Council.
on
page
26
26
The Commercial and Financial Chronicle...
(1554)
Thursday, April 8, 1954
The
Continued from page
in New York between the hours of 10:00 and 3:30;
25
Midwest between 9:00
in the
first dealer, or
known to those other dealers he
(either locally or in other cities), may
often include individuals who are believed to have
contacts
a
buying
selling interest in the instant security,
or
investors who
or
The process
counter
characteristic
of
the
over-the-
However, in most instances unlisted securities
market
there
are
Exchange Commission Rates
A
Counter Dealer
..
"counter"
dealer
find
to
market
the
thus
opposite. The
no
physical
has
limitations.
for you
in
the cost
price
practical matter, though, individuals in
any city of 100,000 or more can frequently pick
up a phone and call a dealer-broker and get
an
on
an
order
for
an
unlisted
secu¬
rity momentarily—often while the call is
gressing.
Some
"counter"
dealers
pro¬
exchange firms also deal in
over-
the-counter securities and any
buy from
sell to
or
to execute customers'
that do not must
over-the-counter dealer
an
orders for unlisted securi¬
ties.
counter when the blocks
quick orderly sale
enumerated
are
too
concern
over-the-counter stock
The
a
business.
included
there
his
on
dealer
does
other
in
when you
fountain
is
This
in
himself with the
than
or
quotations
no
on
an
a
distinct] advantage to the inves¬
exchange, securities
can
profit
commission
charge
The
In
other
what have
you,
not
lower
important
than
are
this
only be sold
listed
over-the-counter dealers
on
in
are
wishes to
quick to recognize
are two
totally
As pointed out before, the assumption of in-
they must be
dealer,
and
responsive to the
customers, they cannot without
unwarranted hazard
unless
purposes
of
aware
foibles of their
stock
a
buy securities for inventory
they take cognizance of basic
Basic economic values
may appear
over-the-
elusive, but they
exchange,
a profit
trading in it
comparable to the commission charges
Jtnents. Some insight
somewhat
nonetheless real. They
are
sist of mathematical and
it, for they cannot make
rates
Intelligent investors
indication
initiative in assuming such positions. Although
fact
ordinarily lose interest
at
no
when he buys
economic values.
security is taken from the
and
in-
ventory positions is an integral part of the overfhe-counter dealers task. They must take the
-
potential buyers and sellers.
a
true
different things.
frequently necessitating his taking the
of an
inventory position, include the exten¬
searching for matching bids and offers from
When
for
price in keeping with
the fact that Prices and values
V
more
the
a
*
profit rates
is
is
narrow
'
obliged to operate
for
reason
and not
the intrinsic value of the stocks he
a
the merchant > sell.:
the
or
that the seller obtains
or
fields
exchange commission rates
are
movement
that the investor gets good value
merchant
a
ready vehicle for speculation
and ask prices is close
over-the-
as
a
The mere fact that under the "exchange auction-specialist system" the spread between bid
quotes
set of dining room furniture,
a
or
counter market
longer trading day in the over-the-counter
On
his
that the services of the over-the-counter
bond, and handle
purchase and sale.
market is often
An
risk
ac¬
exchange stock ticker
vestment purposes, their interest being merely
where is the price going and when."
parlance of
pricef he
lines of business.
It is true that
sive
for exchange-listed securities. Then, too,
hoped-for price
or on
sells it to you at a flat
price and does not add any
commission thereto. So with the "counter" dealer.
on.
the price
swollen
buying and selling decisions on
short-term price
swings in lieu of "real" economic
values. Many
apparently buy stocks according to
often than
means
the;
usually acts just
buy
pen
more
confirmation.
counter
often
not
and tend to center
besides
above, since his dealer-
broker will obtain current market
all details of
sold over-the-
large to make
exchange possible.
are
on an
An investor need not
intricacies
tor.
is
and
you
is
by
premium the public is ordinarily willing to
system provide
you
com¬
"as principal"
you
over-the-counter dealers
Many listed securities, too,
any
the amount of his
as
it is termed in the
as
securities
loss
shown
investor clientele.
well
buys from and sells to
the
or
stocks
tive listed stocks and the
order
an
Vh\';V
thing, the basic fact is that
over-the-counter
the
r
confirmation slip. On the other
your
sell
directly to in¬
vestors themselves. In other cases
they may have
a dealer
following throughout the country consist¬
ing of retail firms that are always looking for
securities that present good values to sell to their
Numerous
on
as
"net" basis
a
of
one
•
mission
a
execution
For
vs.
exchange-listed stock, he tells
an
hand the over-the-counter dealer
not
As
Values
•pay
exchange-broker executes
an
ex¬
pensive service of exchanges.
Charges
markets is
the
can
the
on
may
.afford investors "better" prices than the less
job from 7:00 in the
morning until 5:00 in the afternoon.
~
When
exchange firms. Though the "counter" dealers'
profit rates may be somewhat higher, they
Dealer-brokers in the over-the-counter
Stock
over-the-counter
of
the
be sold any time between 9:00 and 5:00 in the
-Midwest and on the West Coast it's even longer
market.
major characteristic, too, of the "counter"
negotiation. If a gap in price exists
after a prospect is found, the transaction does not
die.
Instead negotiation ensues.
The mere ex¬
istence of a buy or sell order is the incentive for
on
West Coast between the hours of 7:00 and 12:30.
than that.
of constantly seeking out buyers
is
sellers
and
might be induced to buy.
and 2:30 and
to the real value of
as
stock
a
be gained by checking such things
may
con-
non-mathematical ele-
its
as
RHODE ISLAND SECURITIES
Our
Over the
-
-
Trading Department Invites Your Inquiries
Counter
All
on
Rhode
Island Securities
Open-end Phone to Boston
—
Lafayette 3-0610
G. H. Walker & Co.
Established
1900
v
members
new
-
We offer
complete facilities for those interested in
\
.
15
for
'.
any
information
phone
or
WESTMINSTER
us
'
V
,
&
american
Telephone Union
over-the-counter securities. Write
york
stock
v
stock
exchanges
exchange
ST.
(assoc.
*
4
)\
PROVIDENCE
t-4ooo
3.
R.
I.
bell Teletype PR 43
direct
private
wires
V-
to
'•
^
new
york,
st.
louis,
and
bridgeport,
white
desire.
you may
midwest
plains
hartford,
waterbury
offices
,1
THOMSON & MCKINNON
'
Interested.
BROKERS IN SECURITIES AND COMMODITIES
v....
11 Wall
Street, New York
.
*
For latest
stock
on
Offices in 40 cities
ip the United States and Canada
>
i!
...
in any
these pages?
prices, quotes,
simply contact—
■■
.
^
or
information.
'
^
*
•
Trading Department
-
„
Merrill Lynch, Pierce, Fenner & Beane
70 PINE STREET
Members New York Stock
Exchange and other leading security and commodity exchanges
*
i
t
#
e
.
*
•
t
!#*»«.
*■
«
«
( '< i
«
•
*
«
*
l
'
»
*• 'fc
NEW YORK 5, N. Y.
•*
Offices iri'lBb Cities'* \
.
i
1
'■
Number 5314
(Volume 179
The Commercial and Financial Chronicle
...
earnings and dividend records, book value and
(1555)
liquidating value. But the first three of these are
tied to the past,
and subject to the fact that ac¬
value
says,
if the
"Regardless of
standard of
measurement, 1954 is not a year
which offers any substantial rea-
anticipated future average annual net
income of
a
corporation
may
son
be capitalized nu¬
your
Cherne, Exec-
utive
non-numerical concepts.
initiative, imagination and forcefulness of
officers
the
directors
and
of
Speaking
corooration.
the
ot
future
to how the present and possible
as
products of
a
Sr?n„
a
n
„
_
b
Conn,
.'
an
purchases
consistently
individual
although he may remain
"in the market" for an extended
ceptions
period, he cannot
So it is with the over-the-counter
out of
nomic
must be
which
survival he
him from the scene. For
cognizant of the elements, listed above,
determinants of the real value of the
are
securities in which he is
tions. His
taking inventory posi¬
of line
prices cannot consistently be out
regard to the
real values. Particularly in
with
dealer. If he
non-numerical elements which go into the
"of the real value of a
standards."
making
security in which he is to
:
cut
—production, income, jobs.
A
to how
If
you
comparison; they are too differworlds, two fantastically different sets of figures.
of
this.
increase efficiency.
as
intensify
all,
more
sales.
the
But
for
a
whole, the answer
big is the future, is as big
We
are
strong nation, capable of meet¬
ing economic challenge. The rec¬
a
ahead."
*..
'
'
f\
Attend Bar Ass'n Dinner
CHICAGO, 111.—La Salle Street
Women, their employers, and
guests will attend
a
Dinner Meet¬
ing at the
Chicago Bar Associa¬
tion, Thursday, April 15, with the
Honorable William
G.
Stratton,
,
.
-
•
La Salle St. Women to
"^P,6"0^ Many people believe
that the adjustment of 1949 was
y be Korean war, that
™ht?ryt Production bailed us out
? ? t ,ls,
d~,
tasted about a year and had al!?ady started. Industrial producPlayed Tlts?lf,
be,loro
Korea
look at it in terms of
ent
"Because
for
in 1953 is ord of our past achievements gives
not a fair basis for comparison. promise that a new age lies
'1953, this year is without doubt
more competitive.
If you look at
r: it in terms of 1939, there is just no
•
variety of weap¬
a
they want to make it.
as
I want to
such peak
and
above
business
than
more
,
search
That
in some areas will be
the drop in 1949. But
emphasize again that
production as we had
of
costs
And,
"If you look at 1954 in terms
a
few years, 1954 is going to
year.
using
For those affected v
immediate months containing
hardship and the answer is to
To understand what's happening
"ow, you have to_ go> back to the
look awfully modest. If you look last Pflod i" whl^„Wet„had t
at it in terms of the last 14 years' down-turn
1949. Then, too, we
average,
'54 will be a bknner wer<; g°lr,g tbr°ugh /
of
assumes
and drive
add-
because
addition¬
benefit of past experi¬
the
luxuries."
"We will be down about 10% in
Continuing, Mr. Cherne stated:
inventory positions at prices
line with basic economic values, the eco¬
forces will in due time exhaust his capital
habitually
arisen
government
period of adjustment. Some com¬
panies feel it intensely.
Others
for
consumers
Dealing with specific aspects of
varied viewpoints as to measure-
exhausted.
after his capital is
so
had
—
1954' Mr* cherne added:
ed, however, that "many miscon-
;
ment
do
y,
New
Cherne
•
ons
York City, Mr. most of the important indicators
<
times make money, but sooner or later
he will book losses. And
the
for
in
ence
research
all invaluable
are
of other products once barely notice.
scores
considered
hat
in
ers,
Leo M. Cherne
he may at
r
manufactur-
regard to basic economic values,
stocks without
f.e f°r
.
u
'
or
is not
great de¬
this year
other benefits,
"Today,
which
apparel, for home improvements,
Company,
D
reason
consumers
new
vention of the
corporation will fare on the
certain extent.
When
t
day sales con-
be handled numerically only to a
markets may
a
+hCOrih
the three-
f
Speculation
and
expand¬
to ease the effect of business
which, indecline.
Mentally, never before in my ex"Business and growth are not
perience, has united the views of
smooth
sailing.
If
we
want
every
kind of U. S. economist.
fantastre reshuffling of the growth, we have to be willing to
take the growing
pains, too. Right
distribution of our national in- now we are
come has made a fabulous body of
passing through a
±
o
^is
the
Actually, our savings
unemployment insur¬
experience
assets.
revolution
fundamental optimism
In-
stitute
These include the acu¬
and
our
occurred in American motiva- ally has the
t|on
Director,
Kesearch
America.
men,
the next.
or
today represents 26%
the
is
of
economy
faced
pression, either then
of all income,
,.This
business
that
one
position,
come group
£or concern^ according to Leo has
reference to many
not without
the
Our present
ance
be largely of academic significance,
merically, but
*•
banner year.
corporation is going to continue in exist¬
The
ence.
inexact science. And liquidating
an
may
Director; Research Institute of America
in terms of the last 14 years' average, 1954 will be a
to
ing.
the
Leo Cherne, Executive
_
counting is
back
No Reason to Be Concerned Over '54 Picture!
27
Governor
Speaker.
of
Mrs.
Illinois,
as
Stratton
Guest
will
ac¬
tion started to climb about eight
increasing number
months before Korea. Gross na- company her husband.
men realize the need for increased
tional products began moving up
The membership of the La Salle
sales effort—for sales is the secret about three to six months before,
Street Women represents over 50
behind
our
fantastic
conception Profits were already: going up
financial organizations in Chicago.
and the dynamism which moves about
seven
months before the
a
group of people eight abreast Communists - crossed
the , 38th The President of La Salle Street
vT.' to stand in, a line seven blocks Parallel.
Unemployment
which Women, Miss Joan Richardson of
situation, an
of business-
-
general rule,
have knowledge superior to that of the lay trader.
Therefore, an important contribution of overassume
.
a
position, he must, as a
i
long
who take important inventory
the-counter dealers
to
tion—but
ferent
their market
pricing must be influenced definitely by intrinsic
corporate value factors. They must stress value
positions results from the fact that
consciousness over
the
we
are
of
on
a
than
a
in
dif-
to
drop
stock
for
ment officers
the war started.
time
"It
not Korea that
stopped
Baruch Bros. Co. Opens '
Baruch Brothers &
in
our
Co., Inc., has
the downward
day's
dealers. Invest¬
of these institutions, too, are con¬
pal and corporation bonds and
munici¬
stocks through
Over*the-Counter
banks
"counter" dealers for the account of their
Securities
companies.
as
get good or indifferent treatment
you
and values from both
business,
lines of
it is with over-the-
so
for
;
•
^
•
'
I
on
trading markets in selected issues of
Industrial Securities
Bank and Insurance Stocks
respect
worthy and to have good judgment with
Continued
We maintain
firm to
a
to be thoroughly trust¬
million dollars
.
.?:rV
large and small stores in
counter dealers. It is not necessary
a
was
Glore, Forgan & Co., will preside.
movement of the been formed with offices at 44
economy is the family with an ineconomy.
It was the correcting Wall Street, New York City, to
come of over $5,000 a year..,.
The mechanism in the economy itself, engage in a securities business.
top income group in America, In this instance, accumulated inLeon Weill is a principal of the
over $5,000, represented 2Vz%- of
ventories were gradually workall income in 1939.
The top in- ing off. Then the economy went firm.
consumer
tinually buying and selling government,
have
before
or
tirely through over-the-counter
other
months
selling their own institution's
their own account do so almost en¬
buying
Just
for four
the country
major insurance companies of
when
and
been rising for 18 months
during 1948 and 1949, had begun
had
new
consump-
selling to
population
"The real
»
14,000 banks and
look
We live
Past*
quotation consciousness.
Officers and directors of the
the
see
automobile.
page
-ft/--*
28
Public
Railroad Securities
Utility Securities
Canadian Bonds
Dealers and Brokers in
Railroad, Public Utility & Industrial
Bonds & Stocks
Over-the-Counter
D.
The
Trading Dept.
Howard Brown
Frank
FIRST BOSTON
MacKain
,'v"'
■
CORPORATION
Ingalls & Snyder
j
Members New York Stock Exchange
Members
American Stock Exchange
100 BROADWAY
COrtlandt
New York
7-6800.
—
...
t
NEW YORK 5, N. Y.
Bellv System
Teletype
NY
1-1459
Philadelphia
Boston
Pittsburgh
Cleveland
Chicago
San Francsco
28
(1556)
<.»M*
Continued
from
page
The C<mmer$aland
-(MM
TABLE I
27
No. Yrs.
THE BIGGEST STOCK MARKET
investment values. Just be
OVER-THE-COUNTER
Rivers
Consecutive Cash
the over-the-
sure
doing business with has
a
It is
exaggeration to
no
DIVIDEND PAYERS
contemplate
economic life.
bonds idle
vital to
are
tions and the like flows into trade and
and makes it
workers at
more
an
of it is
ever
the
counter
Year in brackets indicates time
from
a
can
which
uiviatnas
tal
not for the
or
many reasons
those
be thus served.
effort,
a,
to
the
of
Money
[1882]
services.
inclusive
as
1.00
31,
1953
% Yield
Diversified
Based on
1953 Div.
American
1
Auto
4.8
$21
Packs
46
3.20
135
2.4
Large
of
81
(Hartford)_
insurance
20
(Hartford)
equip.
insurance
4.2
Fire,
$2.17
95y2
2.3
13
1.50
15%
A
previously
an
62
initial
stores
in
Specialty
time goes on
and
any
(Louis)
advices
American
Filters
and
by the "Chronicle." Communications should be
American
Insur. Co.
&
Felt
felt
producer
22%
4.9
11
0.75
7%
10.0
0.25
0.20
25
1.40
48
2.9
10.4
2%
of
1.25
12
0.75
13%
5.6
14
1.30
14%
9.0
81
1.10
26%
11
0.45
26
1.10
19
6.00
hardware
7.3
American
1.25
3.6
American Locker, Class B___
1.50
5.4
American Maize
cranes,
35
lockers
(Newark)—
In
public
—
19
1.20
21%
5.6
American National
Natl.
Bk.
Tr.
[1935]
(Chic.)
Bank
19
[1935]
4.1
Boilers,
tanks,
pipe
lines
270
Chronicle, 25 Park Place, New York 7, N. Y.
Diversified
insurance
20
2.00
48%
4.1
15
135
4.1
0.50
$17%
2.9
[1939]
BANK & INSURANCE STOCKS
.....w/,......
*
-•••••■•
1
'
-
-•
'
.
'
;
'
•
•:
•-*„
OVER-THE-COUNTER SECURITIES
Specialists
CHRISTIANA SECURITIES CO.
Common
Preferred
Inquiries invited in all Unlisted Issues
J
•
•
;
.
Trading Department, LOUIS A. GIBBS, Manager
LAIRD,
BISSELL
MEMBERS:
&
MEEDS
Telephone BArclay 7-3500
-
STOCK
EXCHANGE
AMERICAN
120
■
NEW YORK
STOCK
EXCHANGE
BROADWAY, NEW YORK 5, N. Y.
•
*
f -
DIRECT
SCHIRMER, AT1IERTON & CO.
'
50 Congress St., Boston, Mass.
WIRE
SCHIRMER, ATIIERTON
49 Pearl
DU PONT BUILDING
WILMINGTON, DEL.
&
CO.
St., Hartford, Conn.
TIFFT BROTHERS
1387 Main
MITCIIUM, TULLY
Philadelphia, Pa.
650 South
44 WHITNEY AVE.
NEW
Teletype NY 1-1243-49
CONNECTIONS TO
WOODCOCK, HESS & CO., INC.
123 S. Broad St.,
Bell
,
HAVEN, CONN.
&
St., Springfield, Mass.
COMPANY
Spring St., Los Angeles,
Calif.
LINCOLN LIBERTY BUILDING
PHILADELPHIA
PA
2.2
.1
Previous record, if any, not available,
t Adjusted for stock
dividends and splits.
t Earlier quotation. Dec.
31 figure not available.
[1934]
.
5.50
;
American Pipe & Constructs
[*1920]
Insurance
4.6
of
Denver
37
23%
corn
[*1928]
Amer.
1.50
7.5
•
various
7.1
34
6
ter¬
Products
42
heating
[1935]
4.1
[1873]
[1943]
3.00
[*1937]
[1940]
eqp.
insurance
Maintains
28
cargo
Insur.
*
Auto
8.0
12
8%
Editor, Commercial & Financial
American
2J5
$10
[1942]
0.65
17
Insurance
1.10
52
prods.
Hardware
Manufactures
equipt.
16
[1929]
10
Alliance Ins. Co.—
Diversified
marine
Diversified
(Mich.)—
miscellaneous
6.3
[1940]
12
Air Filter
and
mfgr.
12
Co
ventillating
20
and
American Hoist & Derrick—
[1942]
Generators & elec. motors
1.25
14
fruits
5.2
products
Allis
planned to make the list
5.7
[1943]
30%
[1944]
papers
17%
11
Casualty
$1.60
[1942]
Midwest
1.00
[1938]
90
Markets.
Allied Paper Mills
5.1
checks
Furniture
General
leading
minals
they represent
:> 29%
[1902]
.—
goods
Super
1.50
[1939]
markets
hair
Hoists,
Staple cotton
5.6
[1943]
auto,
Misc.
9.7
[1864]
Alabama Mills
Albers
felts
furniture
American
36
72
travelers'
American Hair &
[1941]
Agricultural Insurance Co.
Diversified
56%
[1934]
Engineering
heavy
2.40
[1873]
2.00
20
Forging & Socket
American
4.6
20
Fruit Growers
American
of
27
[1934]
insurance
and
1.25
nylon
Co.
body hardware
American
goods
form
every
accident, health
Producer
Dec.
6.9
15
insurance
of
21%
$1.49
[1903]
Felt Co.
kinds
" 7.1
Union:
Equitable Assur
orders;
22%
»'
[1934]
American Fidelity &
[1908]
Aetna-Standard
mu¬
appropriate additions would be appreciated
addressed to the
Incl. Extras
Apnrox.
1.60
on
1953 Div.
against
and
rayon
Express
vegetables
Life Ins.
Life,
tion
1953
Paid
17
sporting
Insurance
Aetna
of the
one
of
Quota-
Paid in
Dividends
Filch—
practically
Diversified
high degree of selectivity necessarily
has been involved. It is
as
This is
dividend tabulations
mentioned follow. Since
more
Aetna
why it is socially important that
the
now
files
Cash Divs.
Consecutive
cash
paid.
Casualty & Surety—
Writes
exchanges and over-the-
corporations.
been
&
Large variety
[1937]
engaged in the investment business thrive.
And
the
statistical
S
Aetna
they put at the disposal of governments,
consecutive
have
Abercrombie
problem. The beauty
impossible to quickly retrieve the capi¬
nicipalities
in
1953
Appro*.
% Yield
Based
51
Western
protection
fibers
Diversified
American
All
markets, investors of all types would find
it almost
prominent
and
American
Insurance
were
available
are
the
or
No. Yrs.
capital needs of both big and
small business alike
If it
records
ever
Savings thereby become
society and not
that
jobs for
less human effort and at
renumeration.
asset to
complete
31,
13
Enka Corp.
American
year
In brackets under name of each listing
Indicates the date from which the company or Institu¬
tion has paid consecutive cash dividends insofar as
"Chronicle,"
tion
[1941]
burglary and holdup
yarns
The
industry
13"
Board
by
Manufacture
possible for business to obtain the
wherewithal with which to provide
ever more
fire,
10 to 169 YEARS
Through the medium of stocks and
Quota¬
Dec.
Mississippi
containers
service
American
capital of individuals, banks, institu¬
aifd
"
Box
Controlled
our
Ohio
on
and
Signal
that both exchanges
and the over-the-counter market
Incl. Extras
American Dist. Teleg.
good reputation.
say
Paid
•
[1941]
American
for
>
1953
American Barge Lines
Operates
individual dealer you
Paid in
Dividends
cash
$
Boxes
or
consecutive
dividends have been paid.
IN AMERICA
to
which
Cash Divs.
Consecutive
Year in brackets indicates
time
from
counter firm
lirpA,y8,nThursdaaniF 1954
Volume 179
Number 5314 ...The Commercial and Financial Chronicle
THE BIGGEST STOCK MARKET
(1557)
Miss Allen
IN AMERICA
which
from
have
been
Cash Divs.
Quota¬
Approx.
Consecutive
Paid in
tion
% Yield
Dec.
Dividends
1953
Paid
cash
consecutive
dividends
Incl. Extras
paid.
Based
31,
on
1953 Div.
1953
$
American
Pulley
and
representative
Allen,
the
of
banking firm of
departed April 2
Diversified
on
of
|0.65
55
3.50
bolts
trip to
Far
sec¬
first
for
hand
1.50
,
4.3
$35
20
Diversified
3.00
611/4
tries in which
4.9
20
Surety Co.
Surveys
Bequest
on
1.00
15%
6.3
93
2.7
substantial
c
Vacuum
[1934]
ware
u
i t i
r
.
*
'
R. S. Dickson &. Company
*
2.50
29
(Charlotte, N.C.)
Trust
s
"
18
1.40
321/2.
1.15
141/2
Marjorie
4.3
11
(S. F.)
world
tour
1*1925]
American
e
investments.
The
Amer. Trust
se-
[1934]
insurance
American Thermos Bottle Co.
7.9
E.
Allen
Incorporated
marks
Investment Securities
third
the
visit
[1936]
Miss
by
NEW
YORK
CHARLOTTE
,
Allen
American
Wringer
machine
Washing
Diversified
bronze
Far
[1943]
parts
12
0.40
Anheuser
22
_.
3.6
311/2
f 1.14
extended
Animal Trap Co. of America
Large variety of traps [1937]
17
Arden Farms
10
1.00
nancial and governmental leaders.
8.2
Miss
Following
Co._
dairy
121/4
[1944]
34
Arizona Public Service
Operating public utility
0.90
5.1
17%
*
17
&
Electric
11
will look
16
0.80
5.0
and
25
3.00
371/2
8.0
that
18
2.75
301/4
months,
Allen
9.1
will
springs
_
_
20
_
public
wire,
CO CO
2.0
-h*
tl-63
41%
48
and
3.9
A.
Prepared for Dealers
the
Dealers'
Our
Miss
invest¬
the
Plan
is
developing
dealers
Service
business for
important
throughout
For complete details write to
country.
Mr. Lewis E. Stone.
or
King Merritt Co.
to
The
Donaldson
Financial
is
Chronicle)
H. HENTZ & CO.
Conn. —Robert
now
with
King
&
Co., Inc. He was pre¬
viously with Hincks Bros. & Co.,
1.26
Members New York Stock Exchange and
,
other
leading stock and commodity, exchanges
6.3
20
60 BEAVER STREET, Ney*
[1906]
yarns
710
0.80
9
20
4.00
$49
8.2
29
1.70
28%
5.9
22
1.60
35%
4.5
74
2.25
521/2
106
1.60
(Special
[1944]
and
public
to
The
Financial
781 FIFTH AVE., N. Y.
Chronicle)
(Sherry-Netherland Hotel)
Plaza 9-3060
[1934]
paper
BRIDGEPORT, Conn.—Michael
CHICAGO
with
HOLLYWOOD, FLA.
11925]
utility
[1932]
1
California, N. A
DETROIT •
Popadic, Jr., has become affiliated
of Amer. NT&SA
largest bank
York 4, N. Y.
BOwling Green 9-8420
Smith, Ramsay
4.3
5.00
Joins
8.9
17
pulp
Special Over-the-Counter Studies
on
Inc.
chain
Operating
of
$43
1.80
35
Bangor Hydro-Electric
Nation's
2.00
(Special
Merritt
Badger Paper Mills
Sulphite
which
of
banking firm.
With
4.7
[1929]
Foods, Inc
Restaurant
after
BRIDGEPORT,
Mills
fabrics
Capitalize
spot
inter¬
Mr. William P. Green
[1919]
Avondale
a
5.6
25
Avon Products
Cotton
21 y2
[1934]
insurance
Cosmetics
1.20
make
management
ment
20
fencing
Automobile Insur. (Hartford)
Diversified
6.9
1*1937]
utility
Atlantic Steel
Nails,
261/4
[1934]
Atlanta Gas Light
Operating
1.80
17
Spring
Precision
to
investment
report her findings to
[1936]
the
Associated
DEALERS' SERVICE DEPARTMENT
It is expected
global trip will require
the
three
furniture
to
ests of Allen & Co.
and
Art Metal Construction Co
Office
Japan,
travel
the investment sit¬
the
on
[1929]
devices
over
Switzerland
check
Hegeman
wiring
controls
5.3
(19431
distributor
Arrow-Hart
20%
in
stay
will
uation, and then to West Germany
Arkansas Western Gas
gas
1.10
[1937]
Operating public utility
her
Allen
Australia,
New v Zealand,
Hong
Kong, Singapore, New Delhi, In¬
dia, and Saudi Arabia, where she
[1920]
Arkansas-Missouri Power Co.
in
April 18, for an
industrial, fi¬
on
visit with
6.7
6
0.40
Natural
short stay in Honolulu,
a
Tokyo, Japan,
[1932]
brewer
Coast
RICHMOND
Member Midwest Stock Exchange
I
After
CHICAGO
RALEIGH
GREENVILLE
ATLANTA
Miss Allen is expected to arrive
Busch
Leading
the
the end of World
since
8.9
4y2
alloy
11942]
products
East
to
War II.
Ampco Metal, Inc
Bank
Gulf Life Insurance Company
.
foreign indus¬
the firm holds
American
Bank
Life Insurance Co. of Virginia
a
in-
spectionof
62
Casualty Insurance Co. of Tennessee
National Life & Accident Insurance Co.
,
the
of
globe,
9.1
$38i/2
[1892]
B/G
East,
[18991
Security & Trust
(Washington, D. C.)___
West
Life &
[1922]
American
Co.
her
tors
3.3
20
32
Jefferson Standard Life Insurance Co.
&
Co.,
the first leg
and other
insurance
and
investment
the
Screw
American
ACTIVE TRADING MARKETS
foreign
Allen
other
Re-Insurance
American
Marjorie
7.9
14 y2
f 1.14
Miss
(1940]
equipment
Screws
14
......
transmission
Power
Trip
on
To Far East
No. Yrs.
Year in brackets indicates time
207
Smith, Ramsay & Co., Inc.,
State
•
PITTSBURGH
MIAMI BEACH •
•
GENEVA, SWITZERLAND
•
CORAL GABLES
AMSTERDAM, HOLLAND
•
Street.
•
L1880]
Commonwealth
of the
Bank
(Detroit)
Formerly
Commonwealth
3.4
148
Bank
L1937 J
Bank of
the Manhattan Co...
401/4
4.0
11848]
4.6
391
169
18.00
29
2.40
561/2
4.2
50
Bank of New York
2.20
541/4
4.1
Lee Higginson Corporation
[1785]
Bankers &
Shippers Insur.__
Diversified
insurance
11925 J
Bankers Trust Co., N. Y
;
We invite
[1904]
Barcalo
61/2
Co.
OH
refining
Baxter
10
6.3
American Research &
3.8
4%
Inc
Associated Spring Corporation
Avon
__
_
company,
26
_
banks
furniture
1.80
37
4.9
26
1.00
13%
7.3
->nd
erector,
3.25
9.0
36
structural
[1936]
Rail
D»«"i
64
2.00
$62
3.2
24
8.00
118
6.8
26
Road
0.40
by Indianapolis Union Ry.
Sacks
and
bagging
[1930]
81/4
Fine cottons
Bibb
C»ttnn
13
LOO
12%
Brook National Bank
Consolidated Rendering Company
Peter
River Brand Rice
Draper Corporation
Erie
7.9
67
2.00
34%'
//
'
Inc.
S
'
;!
33
5.00
fO.44
Paul, Inc.
Rock of Ages
Mills, Inc.
Corporation
St. Croix Paper
Company
Speer Carbon Company
Forge & Steel Corporation
Tracerlab, Inc.
A. Hanna Company
United States
Potash Company
Whitin Machine Works
Pulp & Paper) Corp.
5.8
11
sheetings,
Manufacturing Company
Drop Forging Company
National Aluminate Corporation
Harris-Seybold Company
Williams and Company,
Jones & Lamson Machine Company
[1941]
goods;
Moore
The Meadow
Hudson
Mfg. Co
Sharpe Manufacturing Company
4.8
Holding company affiliate of
Beneficial Loan Corp. [1928]
Berkshire Fine Spinning
Co., Inc.
Bryant Chucking Grinder Co.
The M.
Corp.
Kerite Company
P. R. Mallory &
Marquette Cement
The Duriron Company,
[1890]
Bemis Bros. Bag Co.
Beneficial
Brown &
The
Crompton & Knowles Loom Works
18
Works
Iron
Designer
Belt
the following
Collins Radio Company
wholesaler
[1928]
Belmont
Development Corp.
Products, Inc.
[1928]
Belknap Hardware & Mfg.__
&
17
[1934]
Baystate Corp.
Hardware
0.65
[1944]
Laboratories,
Holding
0.30
20
__
Pharmaceuticals
steel
on
7.4
hand
mechanics'
and
0.48
4"
inquiries
[1941]
Bareco
Oil
13
Mfg. Co.
Furniture
tools
29
Inc.
etc.
[1887]
Biddeford & Saco Water Co.
Operating
"public
utility
Bingham-Herbrand
Forelnes, stampings and
5.1
$98
BOSTON
[1921]
8%
50
tools
NEW YORK
FEDERAL
STREET
40
WALL
CHICAGO 4
5
STREET
231
S. LA SALLE
STREET
Liberty 2-5000
•
Previous record, if any, not available,
t Adjusted for stock dividends and splits.
quotation. Dec. 31
figure not available.
Continued
on
page
30
HAnover 2-2700
FRanklin 2-4500
Teletype BS 452
[•1943]
X Earlier
7
5.0
Teletype NY 1-917
Teletype CG 175
30
The Commercial and Financial Chronicle... Thursday,
(1558)
?■
for
■
'
'•
>
'•
1
of 35 years ago, some
BOSTON, Mass.
Service
ness
tion
was
of which
founded, the
was
threshold
the
on
golden era in its
economic
history.
financial
The
-
1
-
•
■.
J
■
•
popular stocks
at
worthless.
whole stock
market.
Why
capital when
U.
S.
Liberty Loan 4%s were
available to yield nearly 5%, and
railroads of unimpeachable credit
should
na¬
of
'
are now
of the
Thirty-five
—
when the United Busi¬
years ago,
*
f
look back
a
a
and
borrowed
automo¬
risk
he
his
bile
start
called
issue
a
age was just dawning, radio
beginning to bloom, and mass
production had received a tre¬
lift
mendous
from
World
War
I.
One might think that in the light
these trends almost any com¬
investment
stock
mon
from
the
would
active
most
rails—and
of
stocks
thq
General
Motors
most
but at $13
in
also
as
a
was
viewed
and electric utilities
had
just coming into investment
tained
the
tonservative
one
interesting
enters
one
phenomena
one
take
a
jaundiced
view
the
on
and
nose
it makes
out
fast-changing
are
is
position
the
of
and
individual
—
stocks
Bird
Paid in
1953
Paid
Incl. Extras
1953
1953 Div.
0.75
16%
4.5
27
1.00
15%
6.3
22
1.125
121/2
9.0
1.28
211/2
6.0
51
cash
paid.
Approx.
Quota-
% Yield
tion
Dec.
Based on
31,
&
Son
Building materials [*1924]
Birtman
Electric
Household
Co
appliances
Black-Clawson
[(1927J
(Ohio)
pulp mill machin¬
[1932]
Black Hills Power & Lightoperating public utility
12
the
real
the
chances
winners
Even after
a
insurance.
of
of
the
most careful
It
hitting
future."
analysis,
2.00
0.25
$121/2
20
1.20
141/s
79
1.40
34%
4.1
3.00
41
7.3
69
1.50
52
2.9
15
0.80
12
6.7
24
1.00
16%
6.0
54
1.60
30
5.3
17
1.60
291/2
5.4
22
1.30
15%
8.3
31
10.00
15
2.00
241/2
8.2
18
1.20
15%
7.6
13
Co
Mfg.
gloves and mittens
Newspaper
publisher
Boston Insurance
Diversified
Boston
Co.
—*
0.24
2%
9.6
[1875]
Estate
Trust
Voluntary Assn.
Real estate,
8.5
.
[1934]
insurance
Real
2.0
[1923]
Herald Traveler Corp.
Boston
19
,
[1935]
warehouse and
storage [1885]
Woven
Hose
cotton
&
hose
&
[1939]
belting
1
Boyertown Burial Casket—
Misc.
funeral
[1930]
supplies
Bridgeport Hydraulic
water
Supplies
to
several
Connecticut communities [1900]
Brinks, Inc.
Armored
unexpected often happens.
3.9
29
31
1*1925]
Rubber
your
.
[1942]
Boatmen's Natl. Bk. St. Louis
Boss
Boston
continuously.
spreading
good profit
increases
the
up
have been
Cash Divs.
Dividends
30
consecutive
dividends
im¬
investment eggs over several bas¬
is
No. Yrs.
which
from
Boston Wharf Co.
and
levels
(4) Diversify
summarized in the old saying "hit
to
weed
policies
should be watched
of those
likely
In these
flexible
perative,
and
which
and
at
[1937]
service
car
,
Bristol
Brass
Metal
llflllllllllllllllllllllllllllllllllllllllllllllllllllllHIIIIIIIIIIIIIIllllllllllllllllU
___
__
[1932]
fabricator
British Mtge. & Trust
loan
General
(Out.)
trust
&
'
215
4.7
business
[01923 J
There is tremendous
business-building
in
power
well directed
a
of Stockholder Relations—especially if it is
program
~
-5
erly geared to attract reader attention—and capable of earning
Specialists
prop-
E
for
corporation
a
Our methods of
in
"name status" in the Securities Community.
a
handling
=
simplicity with which
story to the investment opinion-makers
Successful
we
across
%"'• ^
E
each client's
present
the country.
'
Heavy
Brown
&
[*1936]
tools
Oil
Creek
Continental
Oil
would like
you
helped by
our
to see
how
^
\
be beneficially
your company can
organization, write
call for appointment.
or
[1941]
group
Buckeye
Steel
Steel castings
—
Diesel
and
2.50
20%
12.0
1.00
211/4
4.7
13
Co.
Buda Co. U-—--i-—-
1.50
151/4
9.8
11939]
engines
gas
CORP.
Bolts, nuts, screws [1941]
•
-
16
15
Castings
[1938]
BUFFALO-ECLIPSE
If
[1939]
Sharpe Mfg.—
Machine
Buck
trucks
medium
&
~
and with members of the financial
community are well recog-
nized—as is the
x+Jtr
Brockway Motor Co
In
relations with stockholders
corporate
See
advertisement of
for
38
page
this
company,
'
—
Bullock's Inc.
Stockholder
24
1.75
24%
7.0
15
0.75
13%
5.6
10
,1.00
211/4
4.7
33
f 1.425
351/4
4.0
—
12
1.60
26%
6.0
Utilities—
11
1.40
23
6.1
27
1.40
$59
2.4
23
2.00
34
5.9
19
1.20
15
8.0
18
0.60
6
10.0
57
1.60
$241/2
15
0.80
91/2
Large California department store
chain
de
[1930]
Burdine's, Inc.
Florida
Relations
retailer
[19391
Burgess-Manning Co.
stockholder relations
Mufflers
and
100
•
Broadway, New York 5, N. Y.
=
Bank
"S
snubbers
'•■;////'/'
'.J
California
—
line
pipe
11944 J
Tel.: WOrtli 4-4856—4-489T
(L. A.)—-
[1921]
llllllllllllllllllllllllllllllllllllllllllllMlllllllllllllllllllllllllllllllllllllllllini
California
Oregon Power
Operating public utility
California-Pacific
public
Operating
California
Cement
Water
[1942]
utility
Portland
and
California
[1943]
Cement.
lime products
[1927]
Water Service
supplier
Auto
bumpers
Cannon
Shoe
Manufacturer
•
[1931]
Campbell, A. SCo.
&
[1935]
grills
and
_
_
retailer
of
shoes
[♦1936]
Carpenter Paper Co
Paper
warehousing
Caspers Tin
Metal
Central
New York
Security Dealers Association
42
__
Plate
Company
The New York
twenty-eight
Security Dealers Association
dealers.
i
'
.
was
established
,
•
_
;.
'.
-
★. Experience,
integrity and financial responsibility
the requisites for
membership.
vf
gas,
Dakota
This association originated the
and uniform practice for the
throughout
our
Central Illinois
business in
the
of reliable
Elec.
Louisiana
of
6.4
&
22
Gas
1.525
26%
5.7
24
4.1
[1932]
Elec.
19
d0.98
11
1.20
18%
6.5
12
1.60
32%
4.9
126
1.80
37
4.9
12
1.60
301/4
5.3
12
2.00
35
5.7
Co¬
[1935]
Operating public utility
Co
[1943]
Central Nat. Bank, Cleveland
Central-Penn Nat.Bk.(Phila.)
are among
r
[1828J
Central
daily
quotations
newspaper
Over-the-Counter
members when
over-the-counter market.
and
fair
Soya Co.
Soybean
Market,
Metal
dealing.
be
processing and dist. [1942]
Previous
record,
our members will be sent upon
if
any,
not
available,
t Adjusted for stock dividends and splits.
t Earlier quotation. Dec. 31 ligure not available,
contemplating
You, will
[1942]
processor
Central Steel Wire
•
our
-
d The
common
1953
as¬
stock
of
this
company
was
split
two
for
one
in
reducing the par value from $10.00 to $5.00 a share.
quarterly dividends of 50c per share were paid on
Regular
s.
-
the
.
common
February
A list
121/2
Nebraska
Central Maine Power
nation.
We urge you to contact
sured
0.80
[1942]
South
.
t
★
12
natural
and
[1942]
•
,
★
1
Electric & Gas
Distributes
Central
by leading over-the-counter security
years ago
8.4
sheets for containers [1939]
operating public utility
★
6.5
[1897]
Operating public utility
Broadway, New York 4, N. Y.
/
Consecutive
Year in brackets indicates time
Mass.
Two
tional investor of those days was
new
examination
intervals
deadwood.
kets
But here
institu¬
industry,
careful
times,
In another
worth of $36 in 1954.
show losses of 70%
•
■
IN AMERICA
Work
to
price
80%.
position of respectability.
a
a
others
prominence, but they had not at¬
Indeed,
bet¬
To¬
the $1,000 investment of 1919
case
April 8,1954
.
THE BIGGEST STOCK MARKET
ery
in
Submit investment portfo¬
(3)
purchase price.
One com¬
into bankruptcy and
the loss became total.
.■
*' ' ^ *
29
page
■
re¬
lections.
went
pany
those who liked to dabble in low
were
day—the
available.
quality issues
from
gamble for
priced issues.
Oil stocks
re¬
day after 35 years, nine of the 20
stocks show losses of 50% or more
stocks,
and
regular
that
of
alive and
developments
new
prod¬
ucts, new ways of manufacturing.
The factor of growth should re¬
ceive heavy emphasis in stock se¬
of the 20 stocks in the Dow-Jones
of
one
traded
share it
a
circles
some
was
actively
to
science
lios
ter
from
Makes paper &
keenly
Be
Industrials
virtually 100%.
were
(2)
ceptive
An investor in those days with
$20,000 to invest might have put,
as
an
example, $1,000 into each
Chandler Motors
holder losses
nancial ostrich.
than half of these
more
subsequently went into
ceivership.
and
1919 era
(price 66),
Pierce Arrow
(35), and Studebaker (86),
Eventually all were
to go in
bankruptcy and stock¬
were
one
put away and for¬
Safety is*not to be found
adopting the tactics of a fi¬
by
from
roads
of
popular
the
securities
as a
be
can
gotten.
standpoint of safety and re¬
spectability. Fourteen of the 20
most popular bonds in 1919 were
out.
Three
(1) There is no such thing
investment
—
the
profitable.
Such was far
the case, the Service points
prove
railroad
recom¬
permanent
which
overwhelming
for
was
Continued
into
back
these
'i
" *<t
'
mendations to investors:
to
soon
look
/'
'
1
history, the United Busi¬
Service makes
ness
10-year 7%% bond.
preference
The
of
was
this brief
market
on
duPont
? if
dozen wrong
a
From
equipment trust ob¬
ligations at 7%? A growing up¬
was
V;1
guesses." Four
of the 20 stocks (American Can,
General Electric, Texas Co., and
Westinghouse) proved highly suc¬
cessful and now show gains of
from 650%
to 1,500% over our
investor's theoretical cost price.
Lessons of 35 Years in the Stock Market
United Business Service takes
rxU> Jt
■
the
request
share
August
v.
were
stock
paid
the
value
par
of
$10.00
per
share
on
May 15, 1953.
Following the split-up of
stock, regular quarterly dividends of 25c per
paid on the $5.00 par value common stock on
paid
on
of
and
la and
dividends
was
15
common
November
on
June
the
1,
15,
1953.
common
1953.
In
stock,
addition
a
5'it
to
stock
the
cash
dividend
'
V'
•
Volume 179
Number 5314
The Commercial and Financial Chronicle
...
31
(1559)
*
THE BIGGEST STOCK MARKET ;
IN AMERICA
No. Yrs.
Year in brackets indicates time
from
which
consecutive
dividends
have
been
Central Trust Co.
Cash Divs.
Paid in
Consecutive
cash
Quota-
1953
Incl. Extras
17
(Cinn.)
% Yield
Based on
1953 Div.
31,
1953
[1937]
*
10
Operating
utility
public
0.84
14%
2.00
33
6.1
CHICAGO, April 7 — The most
hopeful aspect of the current eco¬
[1944]
Chambersburg Engineering-.
nomic readjustment in the United
Forging hammers, hydraulic
States
[1937]
presses
*
18
Chapman Valve Mfg. Co
valves,
Gate
CHASE
(N.
fire
hydrants
NATIONAL
/-■'
"}
75
Y.)
omy
"
2.00
See
23 for advertisement of
page
Chemical Bank & Tr. (N. Y.)
[1328]
/;
;
126
11-81
27
1.20
203/4
14
3.00
331/4
12
1.00
■*:
$11%
.49%
3.6
the
that
r
telephone
company
ley
of
v
boxes
Wood
9.0
Rukeyser
York,
:
[1942]
8.8
tional
N
3.00
5.8
513/4
tual
Publisher
17
of
business
1.00
5.7
171/2
magazines
Christiana
Secur.
Holding Co.
281.00
7500
an
3.7
stitute.
Citizens
Fidelity Bank & Tr.
(Louisville)
34
ings
Natl.
Bank
Trust
3.6
1021/2
1*3.71
Sav¬
&
29
Angeles)
(Los
2.65
5.2
$51
cesses
29
1.35
301/4
1*0.39
153/s
ment
4.5
15
(Savannah)
2.5
Utilties
land
West
Coast
and
communities
City National
New
Eng¬
v'1,;
/
(Houston)
19
___
2.00
:
'
|
.
$53
3.8
13
73
2.7
(Chic.)_
2.00
ian
26
0.40
$66
0.6
/
se¬
there
through
offer
to
salesman
'The
V
!
-
labor
Clary Multiplier
Office
the
the
process
ex¬
commercial credits
is
presses
Cleveland
f
$6%
.
7.2,
f
•
I*
'
*
.
0.80
16
91/4
rates
adjusted
and
out
line
for
base
of the
further
ing
18
Co
Trust
6.00
3.0'
200
Coca-Cola
capitalism
(Los Angeles)
1.50
30
23i/2
6>4
[1924]
^
of
of the
eco¬
wherein
me¬
tuted for expensive human energy.
and
power
industry
this
in
in
men
Coca-Cola
lead
would
(New York)
1.00
15
41
is
the
to
itself
adjusting
Federal
a
to
and
spending
2.4
rearmament
Goods and services
'
-
firm
a
circulating
are
without
the
narcotic
New
arteries
of
stimulus
ever-rising Federal deficits.
*
Previous record, if any,
York
Stock
change,
*
sub¬
Ex¬
has
a s s o c
been
i
not available,
ous
over
the previ¬
in sales of electric energy
year
—fear of
firm
The high and
norm.
unparalleled industrial productiv¬
outstanding fact
economic
at
Now
the American
on
horizon,
long
the
is
last
result.
mover
when he
t
is at long last out of the
College and is
Invest-
is
pause
tion
by the determination of
shortages, fear of infla¬
sum
industry to spend
—
well
year—for
over
further
$4
record
a
billion this
capital expan-
N
of
e w
Mr. Remsen is a descendant
the family
of
of early settlers of
Brooklyn and New York City for
which Remsen Street and Remsen
Avenue in Brooklyn are
''
*
'
in
Bowman
a
fices
->
-
Interested.
...
in any
stock
Continued
.
on
on
the
Walker
ing.
page 32
OVER-THE-COUNTER MARKETS
.
Our
these pages?
a
For
latest
prices, quotes,
or
Trading Department maintains primary markets in
These markets are
broad list of over-the-counter issues.
through the wire system to our
following correspondents:
national in scope
information,
offices and the
branch
simply contact—BARNES, BODELL & GOODWIN
New Haven, Connecticut
Trading Department
ROBERT
C.
BUELL
Merrill Lynch, Pierce, Fenner & Beane
70
PINE
STREET
NEW YORK 5, N. Y.
W.
BUFORD & CO.
E.
Charlottesville, Virginia
FIRST
CALIFORNIA CO.
San
LOEWI
&
WE UNDERWRITE AND DISTRIBUTE
Milwaukee, Wisconsin
Dallas & Houston,
•
COMMON STOCKS
Cooperation of Brokers and Dealers solicited
£ WBrwks
J.
C.
WHEAT & CO.
Richmond, Virginia
EASTMAN, DILLON & CO.
INCOirOIAIII
ESTABLISHED 1907
115 BROADWAY
TRACY
SCHERCK, RICHTER CO.
St. Louis, Missouri
DEBENTURES
•
&
_
Texas
Chicago, Illinois
of medium-sized Industrial Corporations
BONDS
Los Angeles, Cal.
RAUSCHER, PIERCE & CO.
ROGERS
Whole issues of Securities
Francisco &
CO.
Merchants in Investments for Forty-Seven Years
PREFERRED STOCKS
& CO.
Hartford, Connecticut
Offices in 106 Cities
NEW YORK
6, N. Y.
...
Opens
Utah—Ned
Company is engaging
securities business
in
named.
"
„,
SALT LAKE CITY,
J.
'
/
•
N. J. Bowman Co.
in the annals of electricity
shown
Frederick D. Remsen
ment Associa¬
general economic^ recession is but
a
of
member
a
the
current
short-term
the
from
Dartmouth
social and political doghouse.
"That
grad-
d
e
prime York.
your
industry; which is so piv-
1950
since
u a
has been the
your
"Instead of sales based on fears
for stock dividends and splits.
t Earlier quotation. Dec. 31 figure not available.
ted
a
the
with
is
it
unced.
anno
He
'
a
[1939]
t Adjusted
the
on
the
.
1938,
since
year
the
represent
of tremendous
age
stantial increment
program.
economic
has been
Remsen
D.
admitted to general
•
the
American
Jas. H. Oliphant Co.
Frederick
prime
,:the
*as
technological change.
"Every
of
development
growth
mover
propitious for
are
success;
through
40 million
Becomes Partner in
otally important in our economic
curtailed
ex¬
familiies."
•
[1936]
of
concept of better living to
a
upwards of
ity of the U. S. A., which is the
Disproved
expectation
reduced
potentialities
if;
to
pansion, through persistently sell¬
held
are
Production
8.6
"only,
effort
unremitting
the
The
oars.
come
>
gigantic bust have been frustrated.
[1938]
his
no
for
are
Kremlin that the inherent defects
[*1943]
equipment
Clearing Machine Corp
Power
0.475
11
is
on
will
results
achieve
*1928]
of
results
the
patrnership in.
Jas. H. Oliphant & Co., 61 Broad¬
chanical
energy
(kilowatts
of
way,
New York City, and will
electricity) is increasingly substi¬
Thus conditions
"Incidentally, the cynical Marx¬
[1941]
City National Bank (K. C.)_
//.
Marxism
[1935]
City National Bank
•
growth and development will de¬
velop.
>
/ • • •
■'
[1939]
In
and
also
revolution'
nomic
in inventory and in instal¬
process* a
'
Serves
*
arid
being
[1925]
Citizens
:
demand.
[*1925]
Citizens & Southern National
Bank
the Sales Con¬
before
"Despite the rigidities of the
labor cost," - Mr.- Rukeyser said,
"business is seeking a level of ac¬
tivity based primarily on civilian
[1920]
Citizens
address
good
acceleration
through
SysMerryle S. Rukeyser
and business consultant, in
ference of the Edison Electric In¬
[*1925]
potentiality,
take
granted and rest
rigid, the adjustment will be made
Broad¬
tern,
29
Co
and
industry for better values
the
while
Mu¬
casting
[1937]
should
the paradox of the man¬
"With
date to
•
[1935]
Chilton Co.
one
Power Industry Prime Mover
and.
the
for
challenging
not
but
less.
'
e w s
Service
19
Chicago Title & Trust Co.__
of energy. But, with
this
oped in the research laboratory.
Interna¬
for
Chicago So. Sh. & So. Bend
will
coming back into his own, and
sales arguments are being devel¬
commentator
[1940]
a
annual output
customer,
courteous
economic
•
calamities
determined
for
more
ad¬
industry
in the coming decade
doubling of the present
pectancy
will be
wooing
new
the
of
words,
genuinely
your
aggressive selling, its normal ex¬
visible evidence that the seller is
expressed
New
be
must
ductive
■
vague
If
constructive program of
a
desire to buy. Thus
more on
through
only
view
[1927]
Chicago Mill & Lumber
anization.
heres to
where, demand
cultivation
here today by
5.8
fear of
or
situation
hinge
Merryle Stan-■
the increased trend toward mech¬
in the offing—we are moving into
there
econ¬
of self-correc¬
was
;
Chenango & Unadilla Tel.___
Operating
this bank.
■;
evidence
■
".This
,
the
tion,
a
is capable
tion.^
4.2
47%
[1879]
•
is
national
7.5
"s
-.
'
;
38%
1*2.875
,
[1936]
BANK
dustry grows more rapidly than
industry as a whole as a result of
*
5.6
17
Central Vermont P. S. Corp.
ity for power generation and for *
transmission facilities:
Your in¬
rigid high labor costs, business adjustment will come largely
through substitution of electrical mechanical energy for ex¬
pensive human energy.
3.9
51 %
2.00
IM. S, Rukeyser cites adjustment of production to reduced
Federal spending and curtailed rearmament program, with
goods circulating without inflation narcotic. Maintains under
Approx.
tion
Dec.
Dividends
Paid
,
paid.
sion. This will include more capac¬
Thfr National Economy Can Correct Itself
from of¬
Bank Build¬
32
The Commercial and Financial Chronicle... Thursday,
(1560)
No. Yrs.
Continued
from
page
31
which
from
which
have
Cash Divs.
Quota¬
tion
% Yield
Dec.
Dividends
1953
Paid
Incl. Extras
Based
31,
1953
Leased
6.2
21
1.30
26
—
2.00
36
26%
7.6
13
fl.92
391/4
1.00
151/2
2.00
public
Diversified
utility
44
1.05
28
operating public utility
Owns
1.00
30
1.20
12
1.40
13
(Denver)
14%
Consolidated
Holding Co.,
Naval
diverse
14%
6.9
1.60
craft
32
Rendering Co._
48
2.40
351/2
6.8
76
2.00
32
0.88
15%
5.5
Sealing compounds,
38
2.25
38
5.9
—
23%
21
6.00
19
1.20
13%
paperboard
Discount Corp. of New York
Discounts acceptances [*1932]
22
12.00
17
1.00
23
4.3
37
15
2.00
45%
4.4
1.230
14
1.00
$11
17
1.00
13
28
3.00
/ 18
1.00
recording
2.50
Creamery Package Mfg.—
3.00
7.8
38%
18
4.00
—
14
1.00
14%
and
Los
sickness;
Riologicals
and
66
Local
transit
Angeles
River
Mills.
1.20
5.6
21%
paint
[1939]
28
f3.15
15
28
1.60
34
4.7
48
$2.93
126
20
1.95
51%
3.8
40
1.60
52
3.1
41
3.25
53
18
1.00
12%
8.0
38
2.25
39
5.8
50
0.60
16%
3.7
41
$0.73
10%
7.0
26
1.50
22
6.8
30
12.00
$348
3.4
18
2.50
29
1.15
18
0.65
28
2.00
39
5.1
52
$0.65
31
2.1
13
1.50
19
7.9
14
1.00
9%
$0.5
28
3.10
67%
4.6
33
2.40
53%
4.5
17
2.00
50%
4.0
46
1.60
66%
2.4
17
w0.95
28%
w3.5
16
1.40
26%
5.3
24
$1.18
26%
4.5
Co.
$36%
for
7.7
related equip.
&
Foods
[1916]
——_
[1904]
—_
foundries
Chain
8.2
11926]
chaplets
chills
and
[1913]
stampings,
ODeration
store
[1928]
Farmers & Merchants (L.A.)
10
[*1924]
10.0
hard¬
Farreii-Birmingham
Castings,
21
0.40
5%
7.3
Faultless
"Drano,"
gears,
2.40
36%
17
0.80
15%
5.2
3.00
30
10.0
2.00
31
—
6.5
$18
<5-4
goods, sponges [1925]
Federal Bake Shops, Inc
6.6
9.8
25%
[*1936]
etc.
Rubber
Misc. rubber
[*19331
15
6.1
;,t
[*1936]
refractories
&
Manufactures
interests
2.3
,
York Central
New
Fanner Mfg.
Retail baking
engineering projects,
marine equipment [1939]
3.9
$80
Drexel
0.50
4.2
11%
Furniture
Quality
20.00
760
furniture
Federal
Co
chain
5%
11.3
[19361
28
0.40
3.6
$11
&
.
lifting equip.
12
0.85
and
'
Phenolic
marketing
plastics
12
1.40
10
1.00
12
11.7
Duriron
reporting
Chemical—
11%
Eason
Oil
[1902]
and
[1941]
machines
Screws
15
1.00
24%
4.0
and
bolts
[1940 J
Fidelity-Philadelphia Trust—
ti926]
•
/'
[1939]
Co.
Petroleum
types
Ferry Cap & Set Screw Co.—
related
and
other
Screw Works
Screws
14
equip.
0.70
9%
0.50
$10%
Fidelity Union Tr. (Newark)
7.6
12
resistant
4.8
1*1921]
[1940]
8.9
&
Co.
and
Marine
"
■
chemicals
warehousing
Insurance
Federal
64
19
[1935]
Durez Plastics &
9.2
9%
f 1942]
compress and
f19263
Federal
Bradstreet
Credit
:\r
Compress & Ware.—
Cotton
[*1937]
——
I«rfH«triai Jacks and
2.6
[1942]
manufacturing
finishing [1944]
11
[1943]
Dairy prods., frozen foods
9.1
[1890]
—
Textile
7.5
[1914]
insurance
by
Fairmont
Dravo Corp.
also
Inc.
13%
Fanny Farmer
products,
Corrosion
Dan
1.00
[1934]
Voluntary Trust
Bearings
11936]
Soybean
pharmaceuticals
facilities
62
Baltimore
of
[1892]
public utility
gas
Abrasives
[1937]
Duff-Norton
Railway Terminal
5.7
Heavy
Dahlstrom Metallic Door Co.
Dallas
22
Fafnir Bearings
Drackett Co.
2.7
74%
f 1.98
127%
products for power
moldings,
Dun
mouldings, cabinets
1.25
dry
[1913]
9.4
[1926]
Doors,
4.6
20
wholesales
and
Drug
Diversified
7.0
11940 J
ware
29
57
[1937]
Auto
[*1926]
Cutter Laboratories
Mass.
Exolon
Stores
Douglas & Lomason Co
7.0
variety of looms [1939]
Crown Life Insurance Co.—_
28%
Employers' Group Associates
4.3
Leased
Dominguez Oil Fields
'-V
Crompton & Knowles Loom
1.30
[*1928]
Erie & Kalamazoo RR._
Products, Inc
Tissues
89%
[1926]
accident
18%
reproducing
and
graphite,
transmission
Doeskin
Creamery, dairy, ref. mchy. [1888]
(S. F.)
26
uUlity
[1906]
[1926]
Miscellaneous
2.6
97%
"Windex"
annuities
35%
adhesives
Dodge Mfg. Co
[*1925]
Crocker First Natl.
Bridge
(Joseph) Crucible Co.
Crucibles,
4.1
29
[1940]
County Trust (White Plains)
,tl.08
Employers Reinsurance Corp.
Grocery chain
7.4
1
containers
<fc
5.4
30
Empire Trust (N. Y.)
4.2
4.00
[1936]
&
5.6
[1934]
Natural
28
Dixon
54
Products
9
20
0.50"
instruments
Empire Southern Gas Co
8.8
[1935]
0.80
2.1
285
operating
Bromo-Seltzer
19 "
ginning equip. [1900]
Cornell Paperboard
.
"
Emerson
1.50
[1934]
Continental 111. Nat. Bk.&Tr.
18
4.5
10
International
equipment
2.75
20
Mfrs. cotton
31%
2.00
machines, air¬
industrial
Manufactures
19
parts & farm equip.
Sound
Continental
Continental Gin
6-2
6.3
[1936]
Ely & Walker Dry Goods
6.0
[1935]
11935]
Casualty
utility
public
Electric Co
Texas
Operates bridge to Windsor [1944 J
0.9
220
of this company.
20
insurance
cit
1953 Div.
3%
0.225
26
—_
(Thomas A.), Class B
goods
Dictaphone Corp.
Auto
Detroit
Consol. Water Pwr. & Paper
fenamel book paper [1934]
Diversified
1953
Based
[19281
and
El Paso
3.8
[1S41]
tunnel
interests
Fertilizers, inedible tallow
Incl. Extras
t
% Yield
tioii
New England
company.
Batteries, dictating
operates international
6.1
[1933]
Consolidated
Utilities Assn
Operating
[*1922]
Stores—
Paid
.
Edison Sault Electric Co
7.4
[1942]
Canada Tunnel—
and
15V2
CONNECTICUT POWER CO.
Electric & gas public utility 11916]
• See page
38 for advertisement
Dec. 31,
13
11924]
Dewey & Almy Chemical—
& Power-
^Quota-
Paid in
1953
[1941]
Downs
Eastern
4.5
dental
utility
oper.
f0.95
[1878]
insurance
Connecticut Light
Life,
other
and
Bank
18
[ 1906J
Gen. Life Insur.
Cash Divs.
„
paid.
been
Appro*.
Wo.,Yrs.
Consecutive
Dividends
+
cash
Racing Assn.
Suffolk
Interests
Detroit Harvester
—
Eastern
10.3
Dixie-Home
Operating
Connecticult
Wide
teeth
Detroit &
3.9
51%
[1936]
(New Eng.)
19%
Edison
Connecticut
[1936]
(K. C.)
Commercial Shear. & Stamp.
steels
*
indicates time
consecutive
dividends have
1953 Div.
Holding
17
Derby Gas & Electric
)v
Concord Elect.
which
1*1924]
[1936]
Wall
2.00
55
(N. Y.)
Supply
Artificial
6.5
18
Co.„
baker
Commerce Trust
Structural
2.00
stores in South [1941]
Retail food
Southeastern
»
from
bicycle lamps & horns
Denver Natl.
4.9
18
Stores
Columbia Baking
*
Year in brackets
supplies [*1926]
construction
[1918]
Industries
Colonial
and
Dentist's
Supplies utilities and
-
on
11937]
(1928J
Collyer Insulated Wire—
1953
Appro*.
% Yield
Based
P.R.R.
by
Co
Electric
Delta
Auto
(St. Louis)
operated
31,
[1899]
on
1953 Div.
c
Coca-Cola
&
tion
S
15
Delaware Railroad Co
Approx.
Paid in
paid.
been
Incl. Extras
/
/.
QuotaDec.
[1939]
and steel castings
Iron
Consecutive
cash
consecutive
dividends
Paid
,
'V
Dayton Malleable Iron Co—
No. Yrs.
from
1953
paid.
been
■:
IN AMERICA
Year in brackets indicates time
Paid in
Dividends
cash
consecutive
dividends have
THE BIGGEST STOCK MARKET
Cash Divs.
Consecutive
brackets indicates time
Year in
April 8, 1954
Co
production
Fifth-Third
Un.
Tr.
(Cir>n.)_
[1937]
[1942]
Fireman's Fund Insur. Co
fire underwriter
Western
Firemen's Ins. Co.
Diversified
[1908]
(Newark)
[1937 J
insurance
First Amer. Nat. Bk.(Nashv.)
[1938]
/jFirst Bank Stock Corp
Holds bank stocks in Minneapolis
.
■
•
'
'
Dealers In
'
•
'
■
A
.
Federal
-
■>
-
"
'
Reserve District
»
"
'
Previous record, if any, not available.
[ Adjusted for stock dividends and splits.
'
$ Earlier
w
While
the
Securities
Public Utilities
—
v.
quotation. Dec. 31 figure not available,
ihe
actual
dividends
share,in October
Unlisted
11930]
rate
based
on
Industrials
;
of
$1.00
1953
the
per
paid
in
dividend
year
the $1.00 dividend
and
1953
was
amounted
to
95c
increased
to
be
rate.
Primary Markets in
CONNECTICUT
★
★
★
★
SECURITIES
...
WM V. FRANKEL & CO.
*'
Inquiries Invited
INCORPORATED
39 BROADWAY
Chas. W. Scranton & Go.
NEW YORK 6
MEMBERS NEW YORK STOCX EXCHANGE
WHitehall 3-3960
Teletype NY 1-4040-4041
i~
Direct Private Wire — Pledger &
J
NEW HAVEN
Telephone: MAin 4-0171
■
Co., Inc., Los Angeles
New York: REctor 2-9377
,
Hartford: JArkson 7-2669
Teletype NH 194
a
at
the yiijld of $3.50 shown is
Volume 179
Number 5314... The Commercial and Financial Chronicle
THE BIGGEST STOCK MARKET
consecutive
which
dividends
have
been
Cash Divs.
Quota-
Appro*.
Consecutive
Paid in
tion
% Yield
cash
Dividends
1953
Paid
Incl. Extras
paid.
Dec.
1953
31,
BOSTON
CORP
Investment banking
•
See
27
page
15
First & Merchants
o >f
34%
4.00
this
11.5
Contending prompt government action to cope with a recession
is vital, Congressman Javits calls for an immediate Adminis¬
tration program.
Urges expansion of exports, and praises
3.25
67%
15
1.00
$22V2
4.4
25
1,60
321/2
4.9
26
2.50
50
5.0
11
(Akron)
3.00
$77
3.9
Prompt
with
—
in
ing
[*1929]
First Natl. Bank
(Bait.)
>
(Birming.)
_
[1943]
ican
|2.69
18
(Chicago)
__
8.00
3.0
1.00
35%
;
24
1.30
271/2
4.7
legislative
base
people
29
12.00
be
term
litical
$350
43
4.7
21
__
2.00
31
C.)
v',';" ///
[*1923]
First Natl. Bank
3.00
59
2.40
(Memphis)
_
to
64
bring about
turn
3,7
[1895]
act
FIRST NATL. BANK
89
(N. Y.)
22.00
392
ing
Hon. Jacob K. Javits
2.8
$106
in
and
5.6
for advertisement
First Natl. Bank
this
t >f
bank.
29
(Phila.)
1.60
[1925]
First Natl. Bank of
Portland
83
_
1.60
3.4
47%
(St. Louis)
2.60
35
—
the
on
[♦1919]
figure.
ous
First Natl. Bk.
27
1.00
15
Tr.(Okla.City)
1.20
3.0
$331/2
T
(Tulsa)
_
for
4.4
271/2
a
oil,
industries
1.20
1.15
13
8.2
13%
8.1
18%
Dairies
11
1.10
v
26%
4.1
ing
2.00
12
6.8
291/2
is
rl.00
x70
4.2
$24
or
Franco Wyoming Oil Co
2.20
16
that
an
we
economic
an
to
*A
12
0.8
44%
f 0.35
be,
look
to
hard
talk
facts
how¬
no
re¬
Americans
fits
made
that
in
the
unemploy¬
other signs of
heading
urgent
easier
credit
is
off
What
and
not
an
is
all
but
there
economic
needed
immediate
talk
of
expan¬
and
increase
of
under
it; expansion
unemployment insurance
to
all
cover
increase
employees
of
health
the
benefits;
and
relieve
the
aid
to
national
to
program
highway
is,
ac¬
con¬
school
construction
and
a
new
program giving
considera¬
to
consumers.
It
includes
tion
one
of
any
tendency to economic
sion
the
in
greatest
reversals
liberalization
a
to
reces¬
of
the
foreign trade and foreign invest¬
ment policies of the United States.
This could be the single greatest
contribution which can be made
to
halting recession
recession, turning us
rection
or
in
fear
the
of
di¬
full employment and
prosperity and
helping
world peace.
The implementa¬
tion by the Congress of the Ran¬
of
greater
dall Commission
fore
of
one
Report is there¬
of
aspects
the
most
the
important
Administration's
Additions
tion's
the
to
program
Administra¬
which
should ask for include
in
or
the
more
should
in
minimum
a
per
wage
hour.
business
of
$1.00
Also, business
addition to the escalator
to
share
the
benefits
to $5 billion a
double today's
important to em¬
there are at least
up
over
that
to
million
four
Americans
who have jobs because of exports
in such industries as automobiles,
business machines and machinery
manufacture,
mates
who
would
increase
an
that
and
industries
of
*
Certainly we have a responsi¬
bility in government and business
to
these
aid
verting to
this
but
ferred
in
blocking
the
dividend
no
was
declared
was
paid
on
whole
by
maintaining
economy
free
An Increase
with
in
interests
ployment
is
to
of
domestic
exports have dropped sharply and
the 90%
high fixed farm
supports
parity
price
helped farm
income
overall
decline
The
tural
exports
has been
in
Yet
only
income
13%
of
one
has
in the
our
prime
zation
to
from
industriali¬
partial
practically
LOS ANGELES
PHILADELPHIA
30 Broad
CLEVELAND
SAN
FRANCISCO
ST.
LOUIS
Telephone WHitehall 3-2840
TELEPHONES TO:
Hartford, Enterprise 6011
Providence, Enterprise 7008
,
Portland, Enterprise 7008
Dayton, Enterprise 6066
-
m
■■
-
.
-
.r.
i
Detroit, Enterprise 6066
—i
t
'
'H
i
■'
;
'
'
St., New York 4, N. Y.
■■■
sole
de¬
pendence on agriculture provided
they
would
have
the
credit with which to
Continued
&
on
Co.
Pan American Bank Building
Miami 32, Florida
money
or
buy and with
Tax-Exempt Securities
to:
period.
exports
ought to be food to countries in
INCORPORATED
wires
year
dropped
same
63 WALL STREET, NEW YORK 5, N. Y.
CHICAGO
one
$2,800,000,000 in 1953,
farm
GEYER & CO.
Private
have not
a result.
agricul¬
in
17%, from $3,400,000,000
to
1952
and
in
as
Institutional Investors
BOSTON
ex¬
even
INSURANCE STOCKS
and
em¬
ports have reached the saturation
point unless
we
import more.
Especially in agriculture, one of
the keystones
of the economy,
BANK STOCKS
Securities Dealers
Our
export.
PRIMARY MARKETS
to
capacity
surplus production
the
of
Gordon Graves
34
pro¬
of Exports Needed
10, 1934 in view of the
which expired on December 31
page
a
The most effective way to deal
the stock of this bank in 1933,
on
world's
tectionist attitude in this country.
but payable January
Continued
develop¬
the
of
recon¬
job opportunities
certainly to be pre¬
is
to
ment
workers
new
to $1.50,
$1.00 was paid prior to a two for one split,
and 50c was
paid following the split. The yield shown is thus based on the
adjusted figure of $1.00 arrived at by conventional methods,
dividend tax in effect in 1933,
of that year.
be
thousand.
Previous record, if any, not available,
one
by
such
would
hundred
[1942 J
While
in
ceramics,
chemicals
four
t Adjusted for stock dividends and splits.
t Earlier quotation. Dec. 31 figure not available,
r While
the actual dividends paid in 1953 amounted
x
esti¬
affected
imports
glass,
as
and
or
be
Participating & non-participating
life
the
to the number of Amer¬
as
icans
increase ^transition
join with organized labor
new
clauses
an
well
close to
anti-recession program.
trade
righted.
It is very
three
struction; a shelf of public works
for emergencies; Federal aid to
farm
—
rate.
shoes
illness; an expanded na¬
housing program to build
1,500,000 new homes annually or
better; also, a material expansion
Federal
year
imports
This is
gap
which
In addition,
private, and if need be
dollar investment needs
be
foreign
public,
to be stepped
the
serious
of
im¬
and
general
over
minimum
needs to
system
and
a
hospital
bene¬
of
people of the fear of
away
by Congressman Javits before
the
National
Paper Trade Association*
New York City, March 30, 1954.
f;
Co.
should
figures
and
first,
5.2
421/4
Holding company.
Also finances
oil developments [*1938]
There
downturn.
'
Insurance
wait
of
The Admin¬
complacency and
recognizes
>1
Life
into
security
sion of the social security
system
to
include
10,000,000 additional
tion has stabilized the cost of liv¬
[1943]
Franklin
out
us
and
recession either. The Administra¬
foods
Fort Pitt Bridge Works
[X1684]
to
face
ment
frozen
get
it.
no
fusal
1.50
-
tapping
and
pull
private economy
government leadership can
ever,
equip. [1941]
[1929]
products
just
ago
viction that the
avoid
transmiss.
cur¬
Administration
confidence
not
with
25
Foremost
6.8
17%
[1943]
Drilling, reaming,
machines
shall
chemical
Foote Bros. Gear & Mach
&
figure,
emergency is based upon the con¬
11
and
gas
6.1
491/4
[°1887]
Corp., Ltd.„^
for
3.00
67
This
to
war
istration's
Serves Mass. communities
Admin¬
program.
years
economic downturn.
[1939]
Fitchburg Gas & Elec. Light
up¬
certainly does not want to
''
[1927]
First Natl. Bank Tr.
four
the
through
tional
before the Korean war, is never¬
theless a disturbing and danger¬
4.8
56%
Ad¬
Congress to
legislative
unemployed
[1871]
First Natl. Bank
the
rently at 3,671,000, approximately
1,000,000 less than the post-World
War II high mark of 4,684,000
4.2
371/4
join¬
economic
an
getting
The unemployment
22
job
a
ministration
affirmatively
istration's
•.[1865]
page
Busi¬
to do in
[1933]
First Natl. Bank (K.
appro-
has
ness
(Houston)
not
of po¬
brium.
3.4
;[*1925]
First Natl. Bank
a
of
where-
wage
$1,500,000,000.
over
three
concrete
a
[*1930]
(Denver)
annual
exports
phasize
Expanding Social Security
The Administration's
working
that
strength,
First Natl. Bank
Dairy
addi¬
not
calls for buttressing the
factor of great
2.8
[1925]
Gears
the
second,
items
and
5.2
511/2
268
29
First Natl. Bank (Dallas)
Plants
and
few
a
program
should
First Natl. Bank (Cinn.) J—
Fluor
of
by the
yet part
of that program but in line with
its spirit.
IM
'
to sup¬
port this Ad¬
[1936]
See
Administration's
ministration
60
[1864]
First Natl. Bank
•
tion
business
is said
__
the
commercial
.
//•
First Natl. Bank of Boston
:
Congress,
serious
a
slump. Amer-
First Natl. Bank
:
not
are
economic
[1928]
,
We
emergency but we are see¬
an
the
on
in¬
w
of
whole legislative program
double
productivity and'to in¬
possible.
the
tion
to
recession in economic
a
conditions is essential.
(Atlanta)
action
government
cope
[1939]
First Natl. Bank
to
annual
running at the rate of
approximately $23,000,000,000 per
year with an indicated excess of
4.8
[1929]
First Natl. Bank
of
33
ports are
Administration's tax proposals.
company.
25
(Richmd.)
in
crease
effort
rate
Commercial
Based on
1953 Div.
[1939]
advertisement
for
normal
ever
U. S. Congressman from New York
$
FIRST
the
stitute
By HON. JACOB K. JAVITS*
No. Yrs,
from
concentrated
a
Recession and American Business
IN AMERICA
Year in brackets indicates time
(1561)
page
34
34
The Commercial and Financial Chronicle
(1562)
Continued
from
otherwise
not
33
page
dent's
1
what
Recession and American Business
to
could'
President
was
and
diversify their economies.
The fact that Republicans are
capable of putting through the
President's program was evi¬
denced on the bill extending the
19.
of
tax
income
to
deal
with
any
in
quate
ex¬
size
threatened
deal
to
this tax revision bill
of
not
the
This
party responsibility to
effective
an
by implementing
Yarn
Mines
Frick
the
Galen
Van
part
fices
program
New
Van
has
Meter
Meter,
the
in
York
to
in
engage
Incl. Extras
Approx.
% Yield
tion
31,
1953
Based
on
1953 Div.
8.3
:
4%
6.1
r
2.25
43 %
5.2
30
2.00
21
treats
various
a0.25
24
metals
farm mach.
[1902}
Co.
Mfg.
Co..
parts
[1939J
'
Oil
oil,
15
natural
Holding
Gar lock
tents
1.00
31
3.2
21
.
0.65
14V4
4.6
[1933]
bestos
Bus
co.
15
Automatic
controls
temperature
General
General
motors
20 y4
4.9
0.80
14%
5.4
16
for
f0.09
40%'
0.2
14
1.50
17
y4
8.7
20
1.60
4014
4.0
pressure
[*1944]
producer
[1938]
Industries Co.
Plastics:.
1.00
as¬
Crude Oil Co
Southern
10.5
[1905]
General Controls
\ and
9%
10
packings, gaskets,
brushes
1.00
49
[1939]
industry
Packing Co._i__
Mechanical
*
Also
makes
small
elec.
[1940]
GENERAL ; REINSURANCE
CORP. .1
A
9.6
gasoline
gas,
Galveston-Houston Co.
securities business.
..,
14y8
[♦1936]
Bags and
.
1.35
18
Co
Fulton Bag & Cotton Mills.
a
General Reinsurance Group
QuotaDec.
[♦1924]
equip. &
Crude
;
-
of¬
Chrysler ^ Building,
City,
Paid
paid.
52
and
Truck
(
formed
Inc., with
1953
Co.
Fullerton
"
was one
Administration's
Ref.
?
; ;
G. Van Meter, Inc., Formed
Galen
been
Paid in
Dividends
cash
-11933 j
Fuller
a
have
dyeing
Fresnill'o
comprehensive
a
consecutive
f' Franklin
Process Co.
way
Administration program.
.
$
serve
country in
which
Cash Divs.
Consecutive
brackets indicates time
dividends
does
but
-
.
No. Yrs.
Year in
-
->
slavish adherence
regularity
-V
*
IN AMERICA
of the
him.
33
page
THE 3IS6EST STOCK MARKET
his
it
party
mean
course,
which appealed to many of those
President's
under the
in
indeed
practically
of
behind
was
mean
to
re¬
with
Of
recession.
800,000,000 for the current fiscal
even
from
the party,
support
does
tion to put forward measures ade¬
already anticipated deficit of $2,-
year,
and
the
country,
infla¬
threatened
determined
the capability of the Administra¬
double the
nearly
and
legislation
was
cession but jeopardizing seriously
catchy votegimmick to in¬
personal
crease
emptions
Continued
from
purchasing power massive enough
crats thought to be a
political
it
that
the
on
was
be
was
all the leading newspapers
tionary spiral being therefore very
harmful to working people, while
not creating appreciable additional
In that case, what the Demo¬
buying
It
down.
which would set off a new
March
Representatives
voted
ground
corporation income tax rate at
52% and modernizing the internal
revenue
laws which
passed the
House
with
budget and tax receipts estimates,
their resources
develop
other
it
showed'
done when; the
but
program
leadership
which
supporting,
4mportant~«lemente of the-Presi-
Thursday, April 8, 1954
...
...
All
•
casualty and -bonding lines
11934J,
v
>
Largest American multiple line market
See
•
dealing exclusively in Reinsurance A
company's
advertisement
this
on
Georgia Railroad & Bkg. Co.
Holding
.....
Gerber Products Co
General Reinsurance
North Star Reinsurance
Baby foods
machines
Turret
Cash in Banks and Office
'
>
ment
Corporation Stock
.
Other Common Slocks
.
.
.
.
.
over
Accrued Interest
.
.
Total
(not
.
Other Admitted Assets
80,838
Total Admitted Assets
.
~
18%.
4.8
88
Co__
,
2.00
15
' 63
$1.43
3.2
50
1.50
25%
5.6
22%
6.7
11939]
business
'
11904J
Net,
quotation. Dec.
after
10%
31" figure
Mexican
dividend
not
available,
tax.
27,614,299
.
over
90 days due)
.
1,277,601
.
114,949
.
Other Admitted Assets
289,759
;
fO.89
[1935]
[1866]
Tubes
elevator
t Earlier
Accrued Interest
1,063,186
.
9.5
Premium Balances in Course of Collection
72,900,551
90 days due)
21%
.
2,364,461
11,819,689
.
.i
Steel
Grain
a
4,361,050
2.00
Previous record, if any, not available,
it Adjusted for stock dividends and
splits.
3,390,750
Common Stocks
10,963,829
.
.
3.3
*
9,175,436
Preferred Stocks
Premium Balances in Course of Collection
(not
$12,683,652
Other Bonds
Other Preferred Stocks
.
Bonds
22,607,806
North Star Reinsurance
underwriter
Seamless welded tubes
:
United States Govern¬
.$23,118,177
.....
.
19
tools
and
Goderick Elev. & Transit Co.
United States Covcrn-
Total.
Fire
Globe
$ 2,244,931
........
■>
Investments:
Bonds
lathes
'
ASSETS
3,968,455
Investments:
vnent
17
-
[1937]
Gfsholt Machine Co
Financial Statement, December 31, 1953
ASSETS
H-
31%
f 1.05
.7
•».
«»
•
Boring, milling and drilling
Glens Falls Insurance Co
Cash in Banks and Office
//•
'
Corporation
Financial Statement, December 31, 1953
Other Bonds
13
3.4
$202
■'
[1941]
Giddings & Lewis Mach. Tool
Corporation
7.00
[1888]
Rail interests
co.
page.
66
Total Admitted Assets
Interested. ".s.
494,035
.
.
$78,302,789
...
LIABILITIES
LIABILITIES
; '
$31,745,815
.......
in any
stock
on
these pages?
I
Reserve for Claims and Claim
Expenses
.
.
Reserve for Unearned Premiums
Surplus
.
...
.
.
.....
.
3,519,975
.....
Capital
as
at
.
.
1
$78,302,789
.
$6,604,359 in the above
Surplus
.
.
V
required by law. Bonds and stocks owned
are
deposited
Commissioners.
stocks, including those owned by aililiates,
market
Total
Securities carried
Insurance
If
bonds
were
valued
or
information,
'
Trading Department
as
,
10,991,811
$641,029 in the above
Merrill Lynch, Pierce, Fenner & Beane
70 PINE STREET
$31,745,815
...........
at
^
statement are
required by law. Bonds and stocks owned
NEW YORK 5, N. Y.
/
Offices in 106 Cities
.
.
are
valued in accordance with the requirements of the National
and
quotations, Surplus to Policyholders would
prices, quotes,
simply contact—
68,462
Policyholders
are
of
Association
latest
3,010,079
9,691,811
to
statement
valued in accordance with the requirements of the National
For
14,693,208
.
.
$1,300,000
Surplus
27,512,466
...
$ 2,982,255
.
Reserve for Commissions, Taxes and
Other Liabilities
$ 5,500,000
...........
Securities carried
deposited
.
Funds Held under Reinsurance Treaties
22,012,466
Surplus to Policyholders
Total
.
.
.....
2,539,017
.
.
Reserve for Commissions, Taxes and
Other Liabilities
.
Expenses
Reserve for Unearned Premiums
10,987,801
Funds Held under Reinsurance Treaties
Capital
Reserve for Claims and Claim
$33,743,530
Association of Insurance Commissioners. If bonds and stocks
at
were
be
valued
at
market quotations,
Surplus
to
Policyholders
would be $10,967,241.
$27,570,772.
Casualty
• -
Fidelity
•
Surety
Fire
Inland Marine
•
in
Accident & Health
Ocean Marine
DIRECTORS of GENERAL,REINSURANCE CORPORATION and
NORTH STAR REINSURANCE CORPORATION
EDWARD G.
LOWRY, JR.
JAMES A.
Chairman of the Board
CATHCART, JR.*
President,
.
•;
.
General Reinsurance.
HENRY C. BRUNIE
N. BAXTER JACKSON
President, Empire Trust Company
Chairman,
E. HALL
HOVING
Vice President and
,
JPresident, Haying Corporation
Treasurer,
BUSKIRK
ETHELBERT WARFIELD
Special Partner,
Scudder, Stevens & Clark
WHITNEY STONE
Satterlee,Warfield & Stephens, Esqt,
{
J. DUGALD
WHITE
President,
*
President, Stone & Webster, Inc.
•Director of General Reinsurance Corporation
only,„
Home
B. VAN
Vice President, T. Mellon and Sont
B. SMITH
'
The M. A. Hanna Co.
STOCKS
TRASK, JR.
Payson & Trask
ARTHUR
DONALD
Kidder, Peabody & Co.
CARL N. OSBORNE
Corporation
FREDERICK K.
Gallagher & Walton, Esqs.
FREDERICK I. MOORE
President,
T. Mellon and Sons
WAITER
Reinsurance
Willkie, Owen, Parr,
G. HOL8ROOK
Assistant Vice
Corporation
Chairman, Mellon National
Bank and Trust Co.
LUTHER
President, North Star
RICHARD K. MELLON
Hall, Cunningham & Haywood, Esqt.
BANK and INSURANCE
JOHN W. LAMBLE**
';
CARL M. OWEN
Chemical Bank & Trust Co,
WIUIAM
,j. ; j
~
White Securities
**Director of North Star
'
,'
Corporation
EDWIN L. TATRO COMPANY
50
...
Reinsurance Corporation only.
BROADWAY, NEW YORK 4, N, Y.
Telephone: DIgby 4-2420
Direct
Office: 90 JOHN ST., NEW YORK 38, NEW YORK
Midwestern
Department: 1012 BALTIMORE BLDG., KANSAS CITY 5, MO.
Teletype: NY 1-3430
Telephone
"
BALTIMORE —BOSTON —HARTFORD:
-
Enterprise 784$
.
_
yolume 179
Number 5314... The Commercial and Financial Chronicle
Continued
THE BIGGEST STOCK MARKET
GasfrOJvs.
from
which
have
been
ttfnsecutive
Quota-
Paid in
1953
Dec. 31,
Paid
Incl. Extras
1953
paid.
page
and effort of many people
this industry of ours in
11
Good Humor Corp.
Well-known
ice
20
3.7
t0.22
dynamic
Cameras
11
Diversified fnsurance
5.6
2.00
28
7.1
81
1.50
33%
slippers
4.5
17
3.20
61
5.2
30
Q£0
$17%
19
3.00
70%
1.20
14%
v
i,
i
a
Buyers' Market
of
the
and
resource
need
Industry
no
The
controls.
we
had
pointed out that
passed from
a
sellers' to
buyers' market. This is, how¬
ever, a fairly recent occurrence
a
The
subject
in¬
and
the
of
situation
now
seems
•
(N. Y.)
[1873]
(Daniel) Co.I
House
9
[1941]
Great Amer. Ins. Co.
Green
0.50
13
Co.
Cotton fabrics
^
^
[<"1937]
'
Green Giant
Co., Class B
canning
Vegetable
5.1
distribution
&
[♦1924]
Grinnel
Corp.
Sprinklers &
•
plumbg.
eqp.
"
4.3
[1935]
■
Gruen Watch Co
Watches
13
[1941]
•
•
'
•
'
:
.
...
'
:
V
8.2
A
■
(Jrru uca* 5acu/UU«A
-
m
62
$3.45
671/4
16
Guaranty Trust (N. Y.)
0.30
13%
Cvipaxaiion
m
5.1
[1892]
Gustin-Bacon Mfg. Co
Glass
fibre
Insulation
2.2
..
.
.
products
-
[1938]
Hajoca Corp.
12
2.00
281/2
7.0
1.00
17%
5.8 ;
26
1.40
32%
4.3
15
0.80
10%
7.7
20
2.00
60
3.3
102
4.00
103%
3.9
101
1.80
39%
4.5
$0.52
7%
6.7
13
2.00
35%
5.6
46
11.50
15
$0,975
__
Building supplies
[1942]
Halle Bros.
Ohio
39
merchandise
Haloid
distrib.
printing
papers,
We maintain
processes
Public
[1928]
Hamilton
Wood
Mfg.
steel
and
products
Utility
[}939]
Hanna <M. A.), Class B™--Coal, Iron, steel [1934]
Hanover Bank
primary markets in
[1915]
Co.
Photo
-
(N. Y.)
Common Stocks
[1852]
Hanover Fire Insurance
Diversified
Hanson
'
Insurance
[1853]
Winkle..,
Van
11
Electroplating and polishing
equipment [»1943]
Harris Seybold
Printing
*
_
machinery
[1941]
Harris Tr. & Svgs. Bk.(Chic.)
395*
2.9
[1908]
Harrisburg
Steel
Corp
20%
4;8
GLm/ucan
Printing machinery [1939]
♦
Previous record, if any, not available,
t Adjusted for stock dividends and splits.
X Earlier quotation. Dec; 31
GvujoAxttioji
,
figure not available.
Continued
on
page
NEW YORK
36
BOSTON
SPECIALISTS IN
CHICAGO
■
PHILADELPHIA
Interstate
»
Baking Corp.
Common & Preferred
%
Disney (Walt) Productions
Common
ERNST &. CO.
Members New
York Stock Exchange
and other leading
120
American Stock Exchange
Security and Commodity Exchanges
At Tour Service
.
.
.
Broadway, New York 5, N. Y.
231
So. LaSalle St.,
Private
V/ires to
FIRM
Chicago 4, III.
Los Angeles and Chicago
TRADING
MARKETS
Singer, Bean &. Mackie, inc.
IN
OVER-THE-COUNTER SECURITIES
40
New York 5
Exchange Place
NY 1-1825 &
HAnover 2-0270
1-1826
FIRM TRADING MARKETS FOR
«
BANKS...
BROKERS...
INSTITUTIONS
Direct Wires
Contact
us
direct
or
through
any
of
our
offices
and
correspondents
Chicago
Philadelphia
E. F. HUTTON 8c COMPANY
1
'
Members
New York Stock Exchange and other leading security
John
apd commodity exchangee
Latshaw, Resident Partner
'
111 West 10th Street, Kansas City 5, Mo.
Telephone BAltimore 3600
to keep
a.safe
to
deple¬ formation is that the Ford Foun¬ be
somewhat stronger. You will
tion was handled by Roland Rod¬ dation
is
providing
additional all
recall that the immediate post¬
man
of
this
city, in a superb grants which will probably keep war
supply situation was one of
manner.
the thing going for some time.
relative
scarcity.
The industry
If the work is continued in any
"Due
to
the
industry repre¬
had not recovered from the ef¬
sentatives at the Conference and manner, it is going to call for fects of the war
and was produc¬
vigilance to keep the
to the. outstanding leadership of extreme
ing about all the crudfe oil it
conclusions
along these same
Lewis Douglas,
the program
could, and refining it, in order
lines."
-wound up as being on record in
to
satisfy the long pent-up ci¬
favor of the free-enterprise sys¬
I have gone into some detail vilian demand
for our products.
tem and supports the view that on this in order to impress upon
Continued on page 36
resources are
dynamic in nature you the fact that it takes the time
[*1943]
Graniteville
y
nature
problem.
[19341
Graflex, Inc.
v
*
At the outset I
The (Ml
on
retailer
cream
i
In
% Yield
Based
1953 Div.
$
'
¥
The 1954 Outlook for
Approx.
tion
Dividends
cash
consecutive
dividends
from
35
position.
IN AMERICA
Year in brackets indicates time
(1563)
Teletype KC-67, 68 & 69
Reynolds & Co.
Arthur M.
Krensky & Co., Inc.
36
The Commercial and Financial Chronicle... Thursday, April 8,
1954
(1564)
w.wrrt
Continued
from
35
page
refining capacity that only needed
v
its
for
The problems
referred to were, therefore,
readily solved but not without
building up a tremendous mo¬
The 1954 Outlook
The Oil Industry
had to be solved at the
were in an improved
s^ate during most of 1950, but by
the
year-end
industry
These
how
were
on-coming
again
was
1952
to
same
and
time.
supply the
Of high
season
gasoline
in
increasing
better
been
heard
that
shape
since.-
bailed
out
us
be
to
situation.
out"
have
of
doubtless
or
correct
a
that
seeming
fact,
it
As
were
build-up
burning
preparation for the
has
been
1952-
our
in
record
and
demand
"strength"
MER
a
above
large
valve
it
is
a
market
amount
of
also
when
difficult,
achieved
and
It is
it.
close
put
of
lot
a
refinery
through¬
a
maximum
therefore the most effi¬
level, to slow that operation
than
down
it
to
is
continue
it.
Even
so,
crude oil inventories
climbing steadily; in fact,
climbed almost continuously. And
imports continued to climb also.
kept
The
immediate
threat
postwar
of scarcity had alarmed the gov¬
ernment and a number of sub¬
stantial
the
in
units
industry.
Long-term contracts covering sup¬
plies
of
foreign
crude
were
en¬
of
should
stated
here,
I
think, that some of the closer
students of the industry, even as
early as the fall of 1952, felt that
levels of crude oil production and
refinery operation were getting
out of hand. That feeling did not,
however, appear to be generally
accepted, but there were clearer
indications in the late spring of
that
demand
market
was
being
overfcupplied
and
that
above
ground economic waste
might be present. The basic cor¬
-
TELEPHONE BOND AND SHARE
5% PREFERRED
rectness
of the
industry
ket
Statistical
Information
on
Request
statement that
oversupply its
can
no
mar¬
consistently without correc¬
seemed again to have been
tion
realized.
However, that apparent
acceptance was not long retained;
output was again increased but
HOURWICH & CO.
the
Members
New
situation
such action
error.
WILLIAM STREET
NEW YORK 5,
N. Y.
it
result,
a
became
Teletype: NY 1-2815
order
to
waste
Telephone: WHilehall 44185
more
evident than before that excessive
supply had overtaken
a
Incl. Extras
us,
and in
prevent
above
sharper
curtailment
-
ground
of
crude
production was necessary.
During all of this time we were
drilling more wells and building
more refining capacity.
Our MER
was going higher and higher and
Quota-'
Approx.
% Yield
tion
Dec.
31,
1953
Based
on
1953 Div.
■;*' 2.00
14
0.50
5
10.0
35
2.80
^44
6:4
Hartford-Conn. Trust Co.
76"
3.625
Hartford
81
3.00
175
1.7
27
1.20
32
3.8
83
1.80
48
3.8
6.00
$50
12.0
49
2.80
43
6.5
39
2.15
22
2.50
38
6.6.
11
3.25
35%
9.2
(N. O.)
19
1.50
46%
3.2;
Hollingsworth & Whitney___
72
2.50
32%
7.6
83
1.00
17%
5.8
80
b2.40
39%
6.1
11
1.60
15%
10.3
15
$0.95
24%
3.8
18
1.10
22%
4.9
11
0.50
4%
12.1
42
1.60
40%
4.0
16
1.25
24
5.2
14
$1-15
28
Hart-Carter
Grain
6.2 '
32%
[1932]
handling equipment [1938]
Hart &
Cooley
Holding Co.;
(Conn.)
mfg. stocks
Fire
Diversified
[*1919]
Insurance
4.3
84%
[1873]
Insurance
Hartford Natl. Bank & Trust
41927]
Hartford Steam Boiler Insp._
Boiler
and
machinery
Insurance
11871]
Hathaway Mfg. Co
Nylon
&
21
products
rayon
Electric
[1933]
Co..
Operates In New England
Gas
Light Co
Operating public
utility
Produces dairy products in
Maker
6.0
$35%
[1915]
Creamery
sylvania
l
[*1905]
Penn¬
[1932]
of
furniture
[1943]
Hibernia Natl. Bank
[1935]
Specialty
&
papers
[1882]
pulps
Holyoke Water Power
Operating public
utility
in
Mass.
,
[18711
Home
Insurance
Diversified
Co
insurance
[1874]
Hoover Co.
Vacuum
Hotels
cleaners
Statler
[1943]
Co
Well-known chain
Houston
[1939]
j
Natural Gas Corp.—
Southern Texas
utility
[1S36J
Houston Oil Field Material—
Drilling & pumping machinery &
tools
[1943]
Huntington Natl. (Columbus)
[1912]
Huston
(Tom) Peanut Co
Peanut
candy
and
[1938]
butter
I-T-E Circuit Breaker Co
York Security Dealers Association
As
27
in
was
that
indicated
soon
Paid
paid.
Heywood-Wakefield Co.
Overproduction
be
.
22
Industrial chemicals
Hershey
Threats
been
1953
Harshaw Chemical
momentum was set up in that
phase of operation that has been
very difficult to arrest.
;
1
It
have
Paid in
Dividends
cash
consecutive
dividends
Cash Divs.
Consecutive
brackets indicates time
which
Haverhill
a
~
'
:
No. Yrs.
from
into, tanker fleets were hur¬
the drafting boards to
from
"
;
IN AMERICA
Year In
actual construction, and here also
ried
35
page
;?ir]
THE BIGSEST STOCK MARKET
Haverhill
tered
1953
TELEPHONE BOND AND SHARE COMMON
is,
a
has
cient
It
was
lot easier to open the
producing well than
a
to
that
down.
slow
to
on
more
the
that time blessed with
at
considerable
possible
is
distillate
past, all units and divisions of
the industry rose to the occasion
and did the job.• Of course we
us
analysis.
of
summer
winter.
As
ap¬
bad
a
"bailed
not
a: matter
the
what
the
middle
in
1953
I have wondered many
whether
was
of
becoming
the
oils
expression, as I "have,
industry strikes of mid-
peared
times
they
have
existence, while at the same'time
the
the
1952
than
You
from
production
activity
refinery
course,
oil
crude
of
difficult
demand with the low
levels of gasoline storage then in
rihoving along at a pretty good
clip. Even so, conditions at the
close of the 1950-1951 winter were
operation.
mentum
Being the dynamic industry that which was said to have been in¬
we
are,
this situation'was im¬ jected into the situation because
proved to such an extent that of- the attendant shut-downs, re¬
the year 1948 actually was one of sulted in a sort of trap into which
industry
fell
without
full
oversupply. Crude oil inventories the
occur¬
increased considerably, and prod¬ realization of what was
uct
stocks
It is true that by reason
greatly, during that ring.
year.
Of course, no industry can of the strikes, both refined prod¬
particularly gasoline, and
hope to overproduce its market ucts,
consistently without the necessity crude-oil inventories were con¬
of
correction.
Thus,
1949 was siderably reduced. This did ne¬
turned into a year of making up cessitate increased a c t i v i t y all
for past excesses and the doctor's along the line and the industry
presented
with
two
very
prescription was not very easy to was
definite operating problems which
take.
j Things
Continued
the necessary crude raw material
*»iu.
rvizmrun
Electrical
equipment, and
assemblies
radar
for
jet
sub-
engines
4.1
r
'
and
-y
-
.
[1940]
Ideal Cement Co
Leader
in
the
42
•"
Imperial Paper & Color Co.
Wallpaper & pigment colors [1934L
Indiana Natl. Bk.
H8G5]
(Ind'polis)
20
~
.«
5.3
17%
5.7
-
-1.00
ti.'"•••'<> >•»'
89
12.75 $340
1
.
47
2.50
[1912]
industry
>
3.8
:■
Indianapolis Water Co., CI. A
13
0.80
19%
4.1
34
3.50
70
5.0
(Prov.)
29
2.40
$73
3.3
Prods.
20
1.50
32%
4.7
15
1.10
13%
8.1
10
0.30
4%
6.5
18
1.25
$45%
2.7
■
.'j
'
•*
•
.
.
technicians
our
Attractive Unlisted Securities
y
'
,
anxious
i
•
efficiencies
into
Suitable for
our
were
find
to
that
doubt
no
whether
out
they
had
refineries
new
the
built
would
actually be accomplished in dayto-day operation.
Retail Distribution
We
it is
angles. As
much
very
close
Inquiries Invited
under
were
several
valve
a
said earlier,
difficult to
more
on
from
pressure
we
a
producing well
than it is to open it; and it proved
to
be
no
less difficult to
slow
down
ARNOLD FELDMAN COMPANY
120
a
achieved
was
and
others.
Teletype NY 1-2257
As
greater
Co.
partial
and
to
pear
at
,'f
Members N.Y. Security Dealers Ais'n
many
a
greater;
individually,
S. Weinberg &
in
completion in
result, tankers were
also
in
oversupply and charter
rates fell, making supplies from
more
distant
points still more
easily available. The momentum
to
import seemed to become
cases,
Phone BA 7-7343
addition,
In
continuing to move
fairly high rate. Full
completion of shipbuilding con¬
were
along at
tracts
Broadway, New York 5, N. Y.
refinery.
a
imports
h.
a
have
in
refined
fall
that
tion
was
normal
5
ap]bly:
Phone: WHitehall 3-7830
while
INACTIVE
Our numerous oontaets
and
o&cly
held
securities.
For
our
mutual
benefit
may
us
to
we
secure
Co.
[*1925]
Internat'l
Cellucotton
"Kleenex,"
and
related
products
[1934]
International' Holdings,
Investment
interests
Ltd.
trust—hydro-electric
[1939]
Interstate Co.
Restaurant
Interstate
Baton
chain
[1944]
Natural
Rouge
Gas
industrial
Co
supplier
[1936]
*
Previous record, if any, not available,
for stock dividends and splits.
t Adjusted
t Earlier
quotation. Dec. 31
b Company
intention
reports
dividend
in
1953 caused
figure not available,
of paying
$2.00 per year.
Larger
by switchover from semi-annual to
basis.
quarterly
We
that
per
at
the
we
are
have
pleased
same
now
to
announce
started
our
address with the
33rd year
same
remainder
very
and the
largely
way
industry
same
firm
name
business
felt last
top bids
after
o»
respectfully solicit
imt&nvMA
U.
S.
weather
a corrective.
the
would
That this
temperatures
first
SPECIALISTS IN UNLISTED SECURITIES
supply situa¬
ahead of demand,
of
inventories
the
of
year,
middle
on
ESTABLISHED
Members
Nat'l
Members
New
Association
York
1922
of
Security
Securities
Dealers
Dealers
Association
shortly
total
dis¬
year
continued
JOHN J. O'KflNE JR. & CO.
was
good thinking is reflected by the
fact that since the arrival of more
SECURITIES
excellent facilities enable
Trust
busi¬
the
winter
seasonable
c
mortgage
one
barrels
products,
Many in the
for Banks and Dealers
Street, New York
&
residual fuel oil.
ice in all Unlisted Securities
60 Wall
trust
L*1520J
Industrial
[1941]
Mortgage & Trust
Savings,
ness
utility
acting
million,
one
thousand
rels of crude with the
brokerage serv¬
Industrial
companies ap¬
stabilized receipts
day; generally 650 thousand bar¬
We render
public
the
slightly above
hundred
but
Operating
page
37
DIgby 4-6320
42
Broadway, N. Y.
Number 5314... The Commercial and Financial Chronicle
Volume 179
Continued
THE BIGGEST STOCK MARKET
IN AMERICA
..
No. Yrs.
.
Year in
brackets indicates time
which
from
dividends
been
Dividends
1953
Paid
.Incl. Extras
1953
Vo Yield /
tioK
Dec. 31,
paid.
,
supplier
«
L
Based on
1953 Div.
V * I
£
24
1.40
47
of
and
were
s4.9
241/2
s0.75
reduced
27, until; in the
kerosene
Long Island .water supplier 119181
-
Popular sports
oil
a
year ago.
stocks
lowery but that product has
not
fO.73 '
isy4
4.G
for
6y«
9.8
found in
been in
[1940J
wear
area
inventories
also
5.8
-
weeks
are1
31 y4
71-80
million
54
eight
then lower than
0.60;
36
the
inventory
some
or
supply stress
time
Another improvement
20
,
Transformers, fuses, electric clocks
4*^ ••
.
California, distillate fuel
Residual iuel
[19071
Situations such
'Tj
during
Feb.
east
5.8
36
page
* X
were
barrels
ended
f 19391
from
The 1954 Outlook for the Oil
..( <
a-m#
oils
15
Electricity
•
ft-*
tillates
$
:
«
*
rox.
Quota^.
Consecutive..,.£aid»M»Jl*
cash
consecutive
have
"T
Cash Divs,
(1565)
was
apparent realization
by
stills
were
lowered
bution
a
the
overnight. They
a period of time.
of
their
indicated
are
the
discernible
sometimes
to
runs
insurance
Life
ear
Diversified
,76%
rate,
studying
insurance
of
the
[1933]
,
'
<1, '•
;
'
lowered
slowed
3
4.00
62
,
.
sources,' complete
that product, in a buyers' instead
of
a
sellers' market
up-to-date sta-
Continued
heretofore.
as
on
6.5
14
2.00
40
5.0
15
1.00
*10%
9.4
18
2.00
3D/2
6.3
15
1.50
I81/2
8.1
28
f0.91
17%
5.1
30
4.00
660
0.6
32
2.00
39
5.1
17
1.12
24%
4.5
12
stove
0.15
19'
&
8y2
14
Refrigerator
1.00
1.00
IOI/2
9.5
11.8
hardware
[1939J
re
Shoes
for
women
■•••:
5.0
Coast
to
Coast"
[1940]
Temperature and air conditioning
controls
[»1935J
Lathes,
grinders,
Industrial, Public Utility,
comparators
[1940]
Mfrs.
men's
clothing
Joslyn Mfg. Supply Co
Pole line equipment
Bank and Insurance Stocks
[1939]
for power cos.
[1936]
,
Dept.
store
in
Washington,
D.C.
[1939]
Paper
products for food industry
Francis 1.duPont& Co.
[1926]
Non-participating life
Operating public utility
Gas
distributor
Members New York Stock
Exchange
Principal Security & Commodity Exchanges
1<!1924]
[1922]
ONE WALL STREET, NEW YORK 5, N. Y.
[1937]
1.25
251/s
Elmira, N. Y.
Milwaukee; Wis.
Enid, Okla.
Minneapolis, Minn.
San
Fort
31
Chicago, III.
Wilmington, Del.
Milling machines [1942]
Dodge, Iowa
Newark, N. J.
Sikeston, Mo.
Fort
Lauderdale, Fla.
New
Sioux
5.0
in
Akron, Ohio
[1923]
dry cereals
15
361/2
fl-90
5.2
St.
?
Orleans, La.
Fort Worth, Texas
Oklahoma City,
Bakersfield, Cal.
Leader
Galesburg, III.
Omaha, Neb.
Okla.
Louis, Mo.
Francisco, Cal.
City, Iowa
Springfield, III.
dressings,
textiles
com.
[1939]
Storm
Lake, Iowa
73
oils
grade
22
7.3
11
Pennsylvania
1.60
1.00
27
3.7
Beverly Hills, Cal.
Kankakee, III.
Pasadena, Cal.
Cedar Rapids, Iowa
Streator, III.
Kansas
Peoria, III.
CharloHe, N. C.
Surgical
Terre Haute,
Kawanee, III.
Philadelphia, Pa.
Cleveland, Ohio
Washington, D. C.
Los
Quincy, III.
West Palm Beach, Fla.
Dallas, Texas
11881]
City, Mo.
Angeles, Cal.
Memphis, Tenn.
Ind.
Rochester, N. Y.
Danville, III.
Manufactures
White Plains, N. Y.
Miami, Fla.
Sacramento, Cal.
Decatur, ill.
Wichita, Kansas
Miami Beach, Fla.
St.
carbide
cemented
Joseph, Mo.
cutting tools & specialties [1943]
•
Previous record, if any, not available,
t Adjusted for stock dividends and
splits.
t Earlier
not available,
s
While
quotation. Dec.
the
share with
January
dividend
2,
the
an
added
1954,
$1.20
$1.20
in
per
annual
in
declaration
to
30c
share, and
dividend
1953
amounted
of
not
40c
1953
November
increased
was
henceforth
on
31 figure
dividends paid
actual
the
to
t-o
payable
75c
a
until
regular
make
the
quarterly
annual
x-ate
the yield of 4.9%
is based
rate.
Continued
on
page
38
For Financial Institutions—
■
Kidder,
Service
that
Rings
•
Peabody
the Bell...
FOUNDED
Dependable trading markets
*
'
on
385 Over-the-Counter securities.
& Co.
,
•
National
coverage
r
7
through private wires
1865
•
—
Our Complete Service Jor Dealers
all
over
the
country
provides
.
,
CHICAGO
Members
LOS
PITTSBURGH
ANGELES
New
many types
of sales help with
continuous flow of
It's backed
.
.
.
a
our
trading and bro¬
St., New York 5, N. Y.
Dealers.
Details
PHILADELPHIA
NEW YORK
Members: New York
.>
/
v
i
'
?
•
•
Security Dealers Association
t-
on
Retail Sales Service
CHICAGO
....
THROUGH
Mutual Fund Retail Sales
request.
BOSTON
Uptown Office: 10 E. 45th St.
New York 17,
N. Y.
.
THE
YEARS
74
Trinity Place, New York 6, N. Y.
-
PHILADELPHIA
Altoona
New Bedford
Reading
DETROIT
Troster, Singer & Co.
Dealer Relations Dept.
17 Wall
Mutual Funds
Albany
CLEVELAND
by careful research
competent
Service for
ST. LOUIS
original ideas.
kerage facilities. A special feature
is
and
York, American, Boston
Midwest Stock Exchanges
Baltimore
Newport
San Francisco
Springfield
DEPENDABLE
Lowell
Providence
Scranton
Wilkes-Barre
in¬
developing
anyone
,
up
>
15
and
more
products
to and also
4.1
1.50
ly
up
the means necessary for his com¬
re¬
plete understanding. The petro¬
the
leum industry is fortunate in hav¬
rate
of
additions
to
gasoline
from' both the Bureau of
stocks.
Yet over-aR we remain, ing
and particularly with respect to Mines and the Institute, and other
inventories
ferred
1.3
36%
.1.00
V
over
trends has available to him all of
[1913]
21
about
build
[1934 j
41
just
one
Sometimes they
any
in
terested
contri¬
come
real
they
At
These slowely.
necessity.^
made
runs
to
the
described and the forces that gen¬
erate therefrom do
not
happen
Industry
refiners, during the part
winter, that lower crude
as
37
New York Teletypes
NY 1-3893-3894
rv
——
page
40
33
The Commercial and Financial Chronicle
(1566)
ing period
Puerto Rico Water
a
Authority
energy
during
Government
The
for
Bank
Puerto
the
agent for
Authority.
Reports Income Gain
Sales of electric
Two With Calif.
Water
January of 1953, according
A. Bock, Executive Di¬
Carl
rector of the
electric
Authority.
for
energy
Sales of
the
seven
LOS ANGELES,
:
Development
is fiscal
Austin
L.
Rico
v■
with
LOS
to
The
Financial
ANGELES,
C. Aiken
is
South
Spring
No. Yrs.
(Special
with
Street.
S.
Mr.
ments,
Tegeler & Co.
previously with Har^
staff
of
Real
Inc.,
233
Oil
developing
v
oil
(N. Y.)
1V\
4.4
14
0.40
$10%
3.7
13
2.20
26y2
8.3
13
1.00
$18%
5.4
42
3.20
55
5.8
17
2.00
31%
6.3
67
2.00
25
8.0
17
1.00
51
24
3.00
50
6.0
14
fl.96
31
6.3
104
cfl.73
30
5.8
21
3.50
56%
6.2
31
0.50
8Y4
6.1
15
0.35
6
5.8
19
1.50
18%
8.1
18
$0.48
2V/\
2.3
34
1.50
195
0.8
18
fl-95
$56
3.5
24
0.80
15
5.3
16
1.15
$18%
6.2
15
1.25
35%
18
40.00
\
Co.
wholesales
Illinois
steel
cloth¬
men's
producer of mis¬
[1912]
products
Wise,
Household
[1937]
supplier
electrical
products,
[1887]
etc.
Landis Machine (Pa.)
Makes thread
machines
Bleachery
1
Dyes & prints cotton goods [1930]
speed,
High
Company, Conn Broach & Machine, Ensign Bickford, Goodyear
—
tool &
stainless
die,
[1940]
steels
Lawrence
Rubber, Machlett Laboratories, Nelco Metals, Northam Warren
Electric
Co._
[1850]
Operating public utility
Corp., Norma Hoffmann, Pitney Bowes Postage Meter, Plume
& Atwood, Robert Gair, Robertson Paper Box, Russell Mfg.,
Seth Thomas Clock, Sheffield Tube, Schick Inc., Sidney-
Lee
(H. D.)
Co
Work and utility clothing
Leece-Neville
autos
Leonard
Seymour, Union Hardware, U. S. Gypsum, Yale & Towne,
Machine, Wilcox, Crittenden & Co.
for
[1923]
Refineries
Michigan
Whiton
equipment
aircraft
and
[1933]
Co.—
Starting-light
Blumenthal, Stamford Rolling Mills, The Torrington Co., Turner*
oil
refinery
[1939]
Liberty Loan Corp., Class A
Small
i
loan
Midwest
co.,
[1935]
Life & Casualty Ins. of Tenn.
Life,
accident
Lincoln
Life
Company
Natl.
Life
insurance
Lincoln
health
&
[1930]
Ins.
Co.
[1920]
Rochester
Trust
Co.
(Rochester)
[1936]
Connecticut
Lincoln
Report
Request.
on
Inc.
Stores,
Dept. store chain in New England
[1930]
Lion
Match
Co
[1938]
Paper matches
Loblaw, Inc.
Self-service
N.
Y.
—
Water
CORPOKATION
TONAWANDA, NEW YORK
NORTH
Loft
FOR
THE
FISCAL
YEAR
ENDED
JULY 31,
1953
Net Sales
Net
$24,230,335
.
1953
1952
r".
$26,041,469
Large
Earnings:
After
•
%
/ 1,272,094
11
■j
460,000
460,000
$2.61
$3.47
......
Earninqs, Per Share
Dividends Paid
The
Eclipse Lawn Mower Co,
[1943]
.
.
.
.
.......
0.20
2%
7.0
1.10
16%
6.8
*
,
10
lumber
[1944]
* Previous record, if any, not available.
-
t Adjusted for stock dividends and splits.
t Earlier quotation. Dec. 31 figure not available,
c
In May, 1953, one and
share
one
old
of
of
$25
one
half shares of
Lawrence
par
Gas
common
new
Co.
$10 par common,
stock
given
for
each
held.
HAMLIN & LUNT
MEMBERS
Net
5.9
1,597,639
Appropriated Reserves
ing, End of Year
of
680
1.602,277
1,201,616
•
Shares of Common Stock Outstand¬
Jones Company
___
[1936]
candy field
producer
share
After Income Taxes.
The S. -M.
the
in
and
Buffalo Bolt Company
Co
pipe
sewer
3.5
'
Long-Bell Lumber Co
REPORT
DIVISIONS
'
[1939]
Candy Co.
Leader
CORPORATION
and
-
stores,
grocery
State
Lock-Joint Pipe
BUFFALO-ECLIPSE
2.0
*
cutting and tapping
[1937]
Latrobe Steel
Brass, American Cyanamid, Cheney Bros., Collins
Annual
4.9
0.10
Landers, Frary & Clark
service:
Street, Hartford,
80.00 1630
construction
and
[1941]
&
Northern
Lanett
Pearl
1.5
12
Lake Superior Dist Pwr. Co.
supplied in:
266
39
[1940]
moving
Southern
Torrington, New London, Manchester, Middletown,
Thomaston, Darien, Waterford, Montville, Portland, Cromwell,
Durham, Middlefield, Farmington, Avon, Collinsville, New
Hartford, Lakeville, Salisbury, Sharon, Canaan, Norfolk and
Fall$ Village.
Office:
0.60
[1941]
ing
Stamford,
General
7.9
29
Laclede Steel Co.—
The Connecticut Power
5.2
35
dairy-products, South¬
cellaneous
&
19%
2.75
13
Creamery
Kuppenheimer
Stamford, Torrington, New London.
American
1.00
[1942]
producer
equipment
Makes
our
1953 Div.
[1941]
refining
&
California
Earth
(Straight 1000 Btu) is supplied in:
use
1953
[1933]
cables
Koehring Co.
DIVERSITY
\
.
Nationally known manufacturers who
Based on
15
Kinney Coastal Oil
j
is
31,
[1925]
ern
-
&
Kings County Trust
Beverly
South
wires
Wholesale
Service
Approx.
% Yield
tion
[1939]
Kerr-McGee Oil Industries--
Invest¬
Property
Knudsen
Electric
Inci. Extras
QuotaDec.
21
Insulated
Crude
WITHIN CONNECTICUT
1953
paid.
been
Electricity supplier
Drive.
Gas Service
have
Paid in
Dividends
Kerite Co
Young has been added to the
ris, Upham & Co. and Dempsey-
$9,412,590 in the correspond¬
dividends
Cash Divs.
Consecutive
cash
consecutive
Kentucky Utilities Co
Inv.
to The Financial Chronicle)
BEVERLY HILLS, Cal.—Sidney
amounted to
$10,581,794 compared
which
from
Paid
brackets indicates time
Year in
Co.
With Real Property
Calif. —Jared
Paine, Webber, Jackson & Curtis,
626
&
$
Aiken Was
Natural
.
IN AMERICA
Webber
Chronicle)
connected
now
Witter
Dean
months' period ended Jan. 31,1954,
with
;
THE BIGGEST STOCK MARKET
Calif.—Robert
P. G. Papiro have1
r
Now With Paine,
(Special
and
joined
the
staff of
California
Investors, 3924 Wilshire Boule-'
vard.
Mr. Papiro was previously
Resources
by the
thority in January, 1954, totaled
$1,635,390 compared with $1,461,156 in
Thursday. April 8,1954
(Special to The Financial Chronicle)
„
Puerto Rico Water Resources Au¬
to
Continued from page 37
Investors
*
rural electrification
completed
Resources
earlier. Seven
projects were
the month.
year
..
$
690,000
Income Retained in the Business
511,616
$
ASSOCIATE
NEW
YORK
STOCK
AMERICAN
MEMBERS
EXCHANGE
STOCK
EXCHANGE
600,000
Brokers and Dealers
997,639
in
fSSHSSi
Net
Current
Beginning of Year
Buffalo International Corporation
Increase
te send you our
.
.....
Worth
$6,898,840
$11,138,885
617,207
511,616
$7,516,047
Listed and Unlisted
Net
Worth
$11,650,501
$8,048,840
267,207
.
Securities
"Complete Trading Facilities
End of Year
will be glad
.
Liquid
Assets
Penherlhy Injector Company
On request, we
Net
.
.
.$8,316,047
Retail
Distribution
1953 Annual Report.
Marine Trust Co.
Bldg., Buffalo 3
Telephone: Washington 4035
Bell
Teletype BU 145
Direct
i
wire to
*
2 Wall St., N. Y. 5, N. Y.
Telephone: DIgby 4-8288
Rochester. N. Y.; Norwich, N. Y.
Pershing & CoNew York
Financial Chronicle
Number 5314...The Commercial and
Volume 179
THE BIGGEST STOCK MABKET
Halsey, Stuart Offers
Community P. S. Bonds
IN AMERICA
No. Yrs.
tion
1953
Dec. 31,
Incl^xtras
1953
Dividends
been.paid.
have
dividends
..
if'
•
•
Los
interests
realty
11943 J
and
Angeles
1.65
17
fered
Based on
1953 Div./
000
Co.
6.9
24
-
Halsey,
11
20.00
$420
&
1.60
45
3.6
Los
(N.O.)
Inc.
-
mortgage
bonds,
won
by the
competitive sale
bid
a
[*1941J
underwriter
of
on
Saaty Fuel Injector Corporation
Common Stock
Par Value $1.00 per share
Bleachery
Bleaches
and
dyes
cotton
•,">
[1932]
Lowell Electric
P1925] ;
29
2.45
27
$1.24
6.5
54
30
in
3.50
82
Light Co
Operating public utility
Mass.
Business:
101.1799%..
construction
> }■
in
,
Jute
Lux
Alarm
& Sales
clocks
novelty
[1924]
Lynn Gas & Electric Co
-
t'
.
.
5.7'
28%
V
[1908 J
Steel
shelving
i1937 J
store fixtures
and
•4See
25
page
for advertisement of
1.125
14%
7.7
45
1.60
35%
$17%
5.4
and
metal
products
19
Hoists, cranes,
1.70
45%
18
$1.11
16%
gauges,
Maritime Tel. & Tel.
Operates
Nova
and
a
2.4
70
1T.65
Scotia
42
0.80
15%
5.2
17
3.00
64
4.7
27
1.45
28%
5.1
telephone
(Detroit)
the
year
of
revenues
may
be obtained from—
National Association of Securities Dealers, Inc.
Members
New
York
Security Dealers Association
63 Wall Street, New
York 5, N. Y.
WHitehall 4-3405
gas
ap¬
UNDERWRITERS
manufacture
ended
Dec.
$9,556,217
$1,316,984.
vious
year,
enues
were
come
—
share.
of ice in Texas.
sale
income of
11912 J
Mfrs. Natl. Bank
per
d'AVIGDOR CO.
Members,
«
31,
DISTRIBUTORS
1953, the company had operating
Co., Ltd.
concession o£ 40^
subsidiary
small
in. the
engaged
For
*
45
a
Inci-i
sells
company
and
[*19091
CAR¬
light
and
the
is
valves
Manufacturers Life Insur. Co.
system
electric
its
to
pliances,
6.8
[1936]
insurance
electric
Mexico.
New
and
dental
3.7
Rhode
Underwriter
11935]
products
Manning, Maxwell & Moore
Life
participate with
to
requirements
business,
Mallory (P. R.) & Co.-
REPLACES
wholly within the states of
Texas
[1936].
Providence,
in
WHICH
and water busi¬
gas
power,
ness
$0.95.
Injector
year.
the
in
engaged
4.5
18
located
CORP.,
Fuel
^Community Public Service Co.
is
[1909]
utility
(R. C.) Co
Electric
-.
this company.
10
Madison Gas & Electric Co.__
Sheet
invited
Offering Circular
now
ject to redemption at regular re¬
demption prices ranging from
105.18% to par, and at special re¬
demption p r f c e s receding from
101.93% to par, plus' accrued in¬
6.3
23%
publisher [1898]
cables [1944]
rope;
Mahon
1.50
56
CO.
Macwhyte Co.
Wisconsin
'
are
Meteor
the
automobiles, trucks and tractors.
terest in each case.
Well-known book
Wire
6.5
15%
;
~
MACMILLAN
"<
loo
17
Lyon Metal Products, Inc
Dealers
in
-The series D bonds will be sub¬
.
utility in Mass.
Operating public
manufactures
BURETORS
INJECTOR
FUEL
improvements
construction
contemplated this
5.9
/'■•>*
1.60
46
,
$21, ;
SAATY
and to provide funds
progess,
for
>
Mfg. Co
At
9.1
[1B72]
burlap
and
Clock
the financ¬
tq property made in 1953 and
,
"
Ludlow Mfg.
and
Non assessable
on
ing will be used by the company
to pay bank loans incurred for
goods
—
Price $5.00
at
Tuesday
;
".•Net proceeds from
8.3
18
1.50
22
50,000. SHARES
series
Island,
Lowell
-
of¬
yesterday (April 7) $3,000,Community Public Service
first
was
Louisiana Bank & Tr.
Co.
NEW ISSUE.
3 %%, due March 1, 1984, at
101.93% and accrued interest, to
yield 3.15%. Award of the issue
4.8
13
Co.
in
Stuart
39
D,
[1937]
producer
Angeles Investment
Oil
Paid,
<&
Longhorn Portland Cement—
Texas
Approx.
% Yield
Quota-.
Paid in
cash
consecutive
which
from
Cash Divs.
Consecutive
Year in brackets indicates time
(1567)
amounted
total
and
In the
•
DEALERS
net
pre¬
operating
rev¬
[1937]
Mfrs. & Traders Tr.
(Buf.)
—
[*1927]
MANUFACTURERS
$8,372,332 and net in¬
to
$1,219,326.
TRUST
2.80
45
(N.
641%
INVESTMENT SECURITIES
4.S
[1909 J
See
•
*
page
57
for advertisement
of this bank.
Established
Previous record, if any, not available,
t Adjusted for stock dividends and splits.
% Earlier
quotation. Dec. 31
"
figure not available.
1926
Continued
on
page
Publishers
40
of
H. D.
Vickers Brothers
New York 5, N.Y.
52 Wall St.
K A OX
DIgby 4-8040
I
Teletype NY 1-2624
Primary Markets in
&
New York
City
CO., Inc.
MEMBERS
J
New York Security Dealers Ass'n
.
■:;
Vi ,'<*•
■ .*
Bank Stocks
DEALERS AND
BROKERS
IN
Kugel, Stone & Co.
We
Specialize In
TRADING MARKETS
Incorporated
UNLISTED
20 Broad Street
Telephone: WHitehall 3-2050
'
;
In
New York 5, N. Y.
Teletype: N.Y. 1-1822
SECURITIES
UNLISTED SECURITIES
For
BANKS, BROKERS & DEALERS
KINNEY COASTAL OIL CO.
11
THEODORE GARY & CO.
Broadway
NEW YORK 4
Telephone DIgby 4-1388
PARTICIPATING COMMON
Bell System
Teletype NY 1-86
CONSOLIDATED CEMENT CORP.
120
27
Inquiries Invited
Eastern
State
Street
BOSTON
9
Securities,
BROADWAY, NEW YORK 5, N. Y.
TWX-NY 1-40
Telephone WOrth 4-2300
Philadelphia
Boston
Portland, Me.
Telephone CApitol 7-8950
Bell System
Teletype BS 169
JAMES M. TOOLAN & CO.
I
67
WALL
STREET
HAnover 2-9335
New
York
Private Telephone
5, N. Y.
Teletype NY 1-2630
Between
Offices
PRIVATE
Ball, Burge & Kraus, Cleveland
White & Company,
St. Louis
WIRES
TO:
Ames, Emerich & Co.,
Chicago
Kramer, Makris & Co.,
Houston
40
The Commercial and Financial Chronicle... Thursday,
(1568)
jrom
37
page
information
which
from
these studies may be made. As I
said
the
changing picture was
noted
by some
tion
that
its
in
The
development.
was
early
informa¬
very
same
available
them
to
available to all.
pretty well agreed, by the way,
that atomic energy will never re¬
of
force
energy
do not
erted
give some time to observ¬
ing these trends are neglecting an
important part of their business
affairs.
There Is
I spoke on another occa¬
sion in this city a little more than
I made the statement
that the future of oil in the great
a
ago,
year
Southwest
dark.
bright
spot in the petroleum picture. We
I
was
think
still
have
by
it
heard
a
no means
is
a
very
about
lot
recently, and
energy
atomic
of the
some
comments have indicated that this
of
source
furnaces
now
and
power,
or
unthought-of
solar
even
other
some
completely
new
but
unheard-or
or
might
in¬
medium
and
The reserves of nat¬
increased country-wide
approximately 12 trillion cubic
feet. This was after production of
2,600,000,000.
ural
to state publicly that in
the next decade or two all of their
requirements will be ex¬
the atom. Not being
during last
year of about 21 trillion cubic feet.
Not bad, I would say, for a coun¬
try that some contend is running
a position to argue with this pre¬
diction, although I see a consider¬
able number of problems involved
application, but also in the
obsolescence of the capital
Now
in
of
few
a
gas
comprising
area
Oklahoma, and the Pan¬
handle of Texas. Exploration and
development rose to new high
levels
in the past year in that
the
petroleum-consuming and
other
equipment, particularly
when liquid fuel is available at a
reasonable price. This, I do know,
however—that our industry has
attained leadership in energy fuel
supply and, unless I miss my
guess by a wide margin, it intends
13,146 wells were drilled in 1953
compared with 10,985 in 1952.
Thus this region provided more
than 60% of the total increase in
to retain that
with 1952.
is
today
releasing
a,
report of
for
throughout
United States in 1953
leadership.
The American Petroleum
tute
as
drilling
Insti¬
the
entire
compared
as
homa
its Committee
wells drilled in the search for oil
and gas in
against
creased
in
1953 increased to 7,953
5,781 in 1952.
This in¬
rate of drilling resulted
finding 4,544 oil wells as com¬
brought in in
which I have
just mentioned will show that
during last year the State of Ok¬
lahoma developed new oil (crude
and
natural-gas liquids) to the
extent
of
441,000,000
barrels
which, after production of 227,000,000, indicates a net addition
to reserves of 214,000,000 barrels.
This ranks among the largest in¬
creases
in
net
reserves
during
1953 in the important oil states.
Oklahoma's total reserves of liq¬
uid hydrocarbons at the end of
1953 were 2,056,000,000 barrels.
pared
Newhard, Cook
&
Co.
Members
Underwriters and
New York Stock
Distributors
Exchange
Listed and
American Stock
Unlisted Securities
Exchange
Municipal Bonds
Midwest Stock
with
1952.
The
V- r
*
IN AMERICA
No. Yrs.
which
from
dividends
been
Paid in
Dividends
1953
Paid
Incl. Extras
cash
consecutive
have
Cash Divs.
Consecutive
brackets indicates time
Tear in
paid.
Marchant Calculators, Inc
Quota*
Approx.
% Yield
tion
Dec.
Based
31,
on
1953 Dat.
1953
18
1.30
16%
7.8
29
1.00
14%
6.8
22
1.65
$29%
5.6
16
1.75
$44
4.0
19
2.00
16%
12.1
13
0.60
ioy4
5.9
14
6.00
71
8.5
45
11.00
355
3.1
19
2.00
i5i
3 J>
86
{[3.60
80
4.5
25
2.40
49V2
4.8
Corp.
42
1.70
45%
3.7
Merchants & Mfrs. Ins.(N.Y.)
18
0.55
10%
5.1
122
14.00
Calculating machines
[1936]
Marlin-Rockwell Corp.
Ball
and
roller
Marquette
bearings
mid-west
Large
[1925]
Cement Mfg.
Marshall &
producer
Co.
[1932]
Ilsley Bk.(Milw.)
I1938j
Maryland Drydock Co
construe.
repair
&
[*1935]
Accounting, stationery,
equipment [1941J
Lumber manufacturer
Mellon
Natl.
Bank
recording
[1940]
&
Trust
[*1909]
Mercantile Natl. Bk. (Dallas)
[1Q3M
Mercantile-Safe
Deposit and
(Baltimore)
Trust Co.
11868]
Trust
(St. Louis)
[1929J
Merchants Fire
Assur.
[1912]
Diversified insurance
[1936]
Merchants Natl. Bk.(Boston)
4.2
330
[1832]
Meredith Publishing Co._
Homes
Oil and natural gas
tl.075
0.75
20%
■j.
43
2.00
13
0.475
6.4
'31
6%
7.3
[1941]
Decalcomanias
13
1.00
60
0.85
2.8
36
i|
[1941]
Seltzer
6.8
$11 :
[1937]
etal & Thermit Corp._.
In detinning field [1911]
Alka
5.2
[1940]
Gardens
&
14
17
Better
f
4.6
I,
[1894]
L. D. St. Louis 340
Nat'l
Alton,
Bank
Bid*.
Bell
7(107
Illinois
Teletype St L. 151
Commercial
Forsyth Blvd.
Clayton, Missouri
Illinois
Belleville,
out
New
York
Correspondent—Clark, Dodge
&
an
adjustment,
ultimate period
1954
may
Continued
v
well
on
of
6.0
2.10
72
2.9
1.03
19%
5.2
20
1.75
30
5.8
44 /
1.65
41%
4.0
1.40
53
2.6
1.05
15
7.0
0.80
11%
7.0
32
facing
Co.
and
12%
12
rivers
that no industry,
not even the
petroleum industry, can continu¬
ously over-supply its market with¬
Bid?.1
auto
0.75
14
for
1.75
37
4.7
5
.>
6.0
engine repair
[1942]
Commercial
Markets
Looking ahead, if we consist¬
ently retain in our minds and do
something about it, the basic fact
SAINT LOUIS
16
15
FOURTH AND OLIVE
for Expanding
Tools
0.30
19
Need
12
25
Exchange
1st
3,064
report
J?' ?4
THE BIGGEST STOCK MARKET
Mercantile
Individually, the State of Okla-.
did nicely.
The number of
publication
from'page 39 ft
the
Kansas,
form of
Continued
Naval
about
words
Mid-Continent
rapid
carried
finding
out of oil and gas.
only in such complete practi¬
now
than nine trillion feet, or a
total
scientist, I do not find myself in
investments
gas
more
from
cal
Petroleum Picture
When
automobiles
tinuing
a
1,400,-
propelling 000,000 barrels after production of
not
Bright Spot in the
a
our
of approximately
reserves
But the English are con¬
trucks.
Perhaps we
are too busy or top closely occu¬
pied with our other daily pursuits,
but it seems to me that those who
was
Infalry
place liquid fuel as the
The fig¬
successful
of oil and natural-gas find¬
ing for the country as a whole.
More than four billion barrels of
crude oil and natural-gas liquids
combined
were
found in
1953.
This constitutes a net increase in
of
tions
most
a
year
with the oil-heating por¬
our
demand.
It seems
terfere
Reserves.
indicate
ures
Tha 1954 Outlook for the 09
tistical
Petroleum
on
Continued
April 8,1954
carrier:
freight
on
11938]
Holding
[1940]
Company
Electricity
natural
&
Calculating and
chines [1934]
[1942]
gas
bookkeeping
ma¬
turn
page
41
General
banking business [*19101
Life insurance
[1929]
Operates WCAO in Baltimore
[1935]
forgings
Drop
tries
We Are A Vital Part Of
for
indus¬
several
[1939]
General
merchandiser in Memphis
[1922]
♦
"THE BIGGEST STOCK MARKET
Previous record, if any, not available.
t Adjusted
H Cash
IN AMERICA"
and have direct unlisted
equivalent
<
shares issued at time of merger.
on new
i
st.
We maintain position markets in
:
-
splits.
for stock dividends and
t Earlier quotation. Dec. 31 figure not available.
over
100 issues
louis
markets
Our Trading Department Is Active
trading wires to
In All
Local Listed And Unlisted Securities
And Invites Your Inquiries.
New lork City, Chicago,
Dallas,
Houston, Los Angeles. San Francisco,
"If there is
Nashville, Kansas
:
V
1
;
Cityi
a
Market
we
.
■
\
'
"
\
,
:
We
.
SCHEI CK, RICHTER COMPANY
Edward D. Jones &
ESTABLISHED
320 N. 4th St.
Teletype
'
Garfield 0225
St. Louis 2, Mo.
L. D. 123
York
Stock
'
Chicago Board of Trade
Central 7600
Midwest Stock Exchange
Exchange
300 North 4th St.
American Stock Exchange (Assoc.)
Saint Louis 2, Mo.
Bell Teletype SL 593
,
Direct
Private
Wire Connections
Josephthal & Co., New York and Francis I.
I
Co.
1871
MEMBERS
New
SL 456
find it"
Specialize In Orders For Banks And Dealers
Member Midwest Stock
Exchange
Bell
can
Milwaukee, Louisville and Lexington
with
Du Pont & Co., Chicago
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1569)
Continued from page 40
THE BIGGEST STOCK MARKET
the 1954 Outlook
No. Yrs.
Irom
which
consecutive
dividends
have
been
Cash Divs.
Quota-
Consecutive
Paid in
tion
% Yield
Dividends
1953
Paid
Incl. pxtras
paid.
Dec.
31,
Based on
1953 Div.
1953
[♦1941]
See
•
& CO. INC.
,
advertisement
of
Mosinee Paper Mills Co
Sulphate
pulp
&
track operator
Nashua
Makes
•
papers
0.90
20.y2
4.4
18
1.15
111/4
10.2
treating
321/4
4.7
served
by
pipe lines.
300
5.0
$80
2.3
impact of expanding operations in
the Rocky Mountain area and the
15.00
15
1.80
19
1.25
19
$1.67
10
National Casket Co.
Williston
1.00
391/2
3.2
45
3.7
341/4
2.9
line
63
1.30
271/4
Paints
related
1.50
28
5.4
insur.
Mfg.
products
15
0.70
IO1/4
18
Co.
1.80
51
Y
141
fl.98
53%
3.7
[1813]
Trust
for advertisement
of
this
of
30
$2.35
82
2.60
26
(Albany)
1.25
53
4.4
791/4
3.3
[♦1924]
Diversified
insurance
Holding company:
stores [1940]
$42
chain
14
35
5.4
$1.90
food
the
latter
to
be
The
new
as
31 figure
not
SALINAS
RENO
fore
on
page
42
areas,
UNDERWRITERS
In
area.
we
are,
concern
this
are
oil,
over
a
for
&
connec¬
looking at
New York Stock
will
also
grow
of
amount
250,000 to 300,000 barrels
annually
years,
the
over
and that is
Exchange
\
American Stock Exchange
•
Philadelphia-Baltimore Stock Exchange
continuing
is growing, the net do¬
estimated
Company
Members:
1342 Walnut Street, Philadelphia 7, Pa.
So, while output in other
areas
BROKERS
DISTRIBUTORS
•
activities
border
matters of
crude
period.
an
SYRACUSE & CENTRAL NEW YORK SECURITIES
BEACH
Canadian
the
as
mestic demand
Specialize in
FRANCISCO
this
steady increase in the demand
new
Buffalo Eclipse Corp.
SAN JOSE
for petroleum products, and there¬
available.
Continued
We
LONG
SANTA ROSA
under¬
that
SAN
SACRAMENTO
development
Canadian
the
course,
Continent
a
Dec.
LOS ANGELES
.
of
part
the
producing
well
tion, however,
record, if any, not ava'lable.
V
t Adjusted for stock dividends and
splits,
quotation.
BROKERS
Angeles Slock Exchange
producers and refiners in the Mid-
•Previous
t Earlier
in
seems
vicinity.
across
3.0
[*1928]
National Food Products Corp.
DISTRIBUTORS
Members Los
transportation systems and refin¬
of
Large variety of boxes
UNDERWRITERS
and is due for
[1872 J
Folding Box Co
1920
prospect from the Wil¬
these
eries,
Natl. Fire Ins. Co. of Hartf'd
National
next
New York City
at
'Lebanon
from
per
Klngsley 5-4500
*
Atlantic City
Yineland
Effective Distribution
day
In the Nation's Third
Largest Trading Area
several
lot of oil.
a
Merchants National Bank
Equitable Credit Corp.
Oneida Ltd.
Excelsior Insurance Co.
Onondaga Pottery
First Trust & Deposit Co.
Oswego Falls Corp.
Hotel Syracuse
Rochester Telephone
Lincoln National Bank & Tr.
Rochester Transit Corp.
Lipe Rollway
Syracuse Transit Corp.
%
i
I
./
STATE
Connections to
Bell
Tele.
SS
190
Tel.
Syracuse
#\JJ
ft
%>• '&■
%
2, N. Y.
2-1236
We
in
at
arc
the
listed
all
times
interested
i
purchase of blocks of
-
'
l"
/
f
4 m-4
I municipals I
i
I
i rails
% ii M
% }
I/- % u
jft
unlisted securities for
or
-
'
jyg */'.
our
Specializing in
k ?i
"i l ii!
<>
'< %
'gv
TOWER BUILDING
SYRACUSE
Cruttenden & Co.
•?'
/N
7
equipments
I.
t
L. Johnson & Co.
Private Wire
account
own
or
for
,
'
redis¬
£<
tribution.
1
INDUSTRIALS
/f
%
revenue
m -A
V
:
i"">.
% 1new f f
j issues! ii
bonds
OVER-THE-COUNTER SECURITIES
DIRECT PRIVATE WIRE
i 1
•
NEW YORK CITY
1 bank!
|
st0cks
| utilities
1
ft'
mmn*.
leased
t|nts
i
insurance
% ■>#
;/''//
stocks
j |
stock
,
-
X
REED, LEAR & CO.
STROUD & COMPANY
Members Pittsburgh Stock Exchange
American Stock
Exchange (Assoc.)
Incorporated
123 SOUTH BROAD STREET
Branches
X
NEW
YORK, N. Y.
BUTLER, PA.
MEADVILLE, PA.
Bell Teletypes
—
PHILADELPHIA 9
•
New York City NY 1-1420
darn
a
oil with another 10,000 barrels for
additional
refining facilities in
bank.
Commercial Bank &
Co.
It
that
See page 24
still
is
cow.
,
standing at this time
plant will operate on
3.5
[1936]
National
is in
1955.
NATIONAL CITY BANK OF
•
Basin.
completion
6.8
[1939]
City Bank of Cleveland
N.
industry
healthy
Established
under construction
&
the
are
MITCHUM, TULLY & CO.
of
network
Basin fields to the city of
Mandan, North Dakota, where a
35,000-barrel
per
day
refinery
is projected. At St. Paul, Minn.,
a
25,000-barrel per day plant is
[1935]
Natl.
appeared, but should that be true,
liston
4.8
19
!_
Co.
large
a
The pipe line
coming down through Wyoming,
Eastern Colorado, and Nebraska,
is picking up close to 100,000 bar¬
rels per day of crude oil and mov¬
ing it to the Chicago area. A pipe
[1891]
National Chemical
have dis¬
bright
As to increasing markets, I be¬
we should bear in mind the
equipment
casualty
may
lieve
[1944]
health,
concede that
even
cream
us
a
of
none
I do not
of the
One
area.
1.50
23
Detroit—
National Casualty
Certainly
some
going to be entirely happy all of
pipe lines are and certainly
this section of the country is well
water
J"\ VNational Bank of Tulsa
undertakers'
what I conceive to be
picture.
right.
un¬
favor is that markets
26
__
Commerce(N.O.)
of
mar
that
course,
things might happen to
the
V*'
Accident,
our
this
5.6
;
.
expected
and
the markets for
on
from
36
[1939]
Various
oil
2.00
coated
Comm.(Houston)
National Bank
valleys we
They are the
disappointments of
the free enterprise system.
This
oil business of ours is doing all
Industry
recognize, of
a
nothing ahead for the next
years that would have any
thing in
[♦1931'J
[1935]
look for¬
to
28
for
I
and
for the output of crude are where
[1928]
[1935]
we can
confidence
adverse effect
[1936]
Natl. Amer. Bk. of New Orl.
Natl. Bk. of
better years.
our
I believe
with
crude
Aluminate Corp.
Natl. Bk. of
of
Peaks
always have.
rewards
can see
two
Corp.
Chemicals
16y2
6.1
19
Assn.__
waxed, gummed,
[1926]
National
1.00
[1935]
Narragansett Racing
Horse
company.
[1942]
paper
supplier
gas
3.7
267
14
Mountain Fuel Supply Co
Natural
10.00
this
In fact,
one
high
level of exploration and develop¬
ment and stabilization not only
as to
price but as to markets. I
,
for
55)
page
13
out to be
ward
s
MORGAN (J. P.)
for the Oil
Approx.
cash
time.
shall
IN AMERICA
Year in brackets indicates time
the
—
PITTSBURGH
Pittsburgh PG: 482
NEW
YORK
PITTSBURGH
AT XENTOWN
41
LANCASTER
ATLANTIC CITY
42
(1570)
The Commercial and Financial Chronicle
Continued from page 13
cellar, but
aggressive
vestments
Common Stocks lor
attitude
generally.
by
adopting
A
more
interest
rates.
This
there is
is
desire
a
to
seek
even
in
moderate
evident
by
a
comparison
tain changes in
of
The liberalization of laws, regu¬
lations and policies in more re- :
the last 20 years.
powerful
stimulating forces directed toward
servator of funds is observed, not
Moody's yields in
investment
by
41
page
THE BIGGEST STOCK MARKET
policy has
by use of a well known
military theory that the best de¬
fense is a good offense. Growth,
degree a balance be¬
tween appreciation and income. In
both cases, the concept of con¬
cer¬
8,1954
Thursday, April
evolved
then, is sought not for the sake;
of capital gains as such, but to
acceptance and growth in popu¬
Average Yields 1935 and 1954
offset the ravages of inflation on
larity of sifch stocks as Weyer¬
1935 *1954 capital that already has been ac¬
haeuser Timber, Aluminum Co. of AAA Corporate Bonds 3.60% 3.00 cumulated.
Common stocks generally have
America, Aluminiurp Ltd.f Inter¬ High Grade Preferred
Stocks
4.50% 4.0
good value whether related to
national Paper, Amerada, Douglas
200 Com. Stocks—_ 4.06% 5.50 earning
power,
dividend yields,
Aircraft and a number of the in¬
*
assets or to other securities, par-*
(Approx. March),
surance stocks.
^
ticularly bonds. A calculation of
Thus,
while
the
percentage asset values or a summary of the
In
addition
to
the
favorable
yields on good bonds and high amount of reinvested
earnings in
action of individual
stocks, certain grade preferreds declined about the postwar
years
alone would
one-half of one percent on the
groups have performed exception¬
indicate fairly convincingly that
ally well. This fact was bound to average, common stock dividend there is substantial earning power
yields average some 1 % % higher
represented
by
relatively
con¬
attract attention, encourage buyers
now than
they did in 1935.
servative market valuations. It is
of stocks and induce new
buying.
The manager of investments is interesting to
observe, however,,
Most notable,
perhaps, of these putting
such
valuations
have
not
greater
emphasis
on that
groups are the oils and chemicals. capital appreciation. His efforts in been as strong a motivating factor
this
respect
are
not
confined for the purchase of common stocks
Common stocks have been made
solely to accounts of individuals. as the figures seem to warrant. A]
relatively more attractive by the In both trust and pension funds, notable example is steel stocks.
in
from
in¬
liberal- investment
Trusts and Pension Funds
decline
Continued
more
a
toward
...
taking
refuge
in
the
storm
cent
State
states,
been
lead
of
dividends
others.
Most
New
law
permitting
have
been
Cash Divs.
Consecutive
Paid in
Dividends
1953
Paid
Incl. Extras
cash
paid.
Quota-
Aoorex.
% Yield
'
tion
**
Dec. 31, Based on
1953
1953 Div.
3.00
63
4.8
28
t0.79
15
5.3
17
0.25
20
1.3
64
11.875
28%
6.6
149
i
[1805]
National Oats Co.
I
———
animal feeds
Cereals,
■
[1926]
National Paper Type Co
Exports printing supplies to Latin
[1937]
America
National Screw & Mfg. Co.—
bolts
Screws,
[1890]
nuts
and
(Boston)
57
1.60;
38%
4.2
National Shirt Shops of Del.
r
Chain, men's furnishings [1939]
15
0.90
13
6.9
National State Bk. (Newark)
29
18.00
460
3.9
Natl. Shawmut Bk.
1*1897];
'
^
[*1925]
National Terminals
Midwest
storage
10
Diversified
insurance
Nekoosa-Edwards
Pulp and
New
30%
5.2
17
__
1.50
47%
3.2
5.25
52%
10.0
45
0.60
12%
4.7
[1937]
[1936]
New Brunswick Tel. Co., Ltd
Operates
4.8
1.60
18
Casualty
insurance
tools
41%
13
Britain Machine
Machine
9.3
[1934]
Paper
New Amsterdam
New
12%
2.00
[1944]
[1941]
papers
Diversified
1.15
20
Corp
facilities
National Union Fire Insur—
York
is
consecutive
National Newark & Essex
In
the prudent
adopted, fol¬
of
these
whose
stocks.
common
of
the
notable
No. Yrs.
which
from
been
has
rule
lowing
WE SUGGEST—
in
number
a
man
*Sr-
have
years
IN AMERICA
Year in brackets indicates time
Brunswick
tele¬
[*1909]
phone system
the
rule of prudence became effective
the
in
also
Koehring Company Common
(Manufacturers
of
Road
growth
of
retirement
which
fined
DIVIDEND $2.20
1950.
There
in
has
and
use
trust
common
funds
APPROX. PRICE $31.00
of
spread
a
their
systems
other
and
previously had
investments
Table II. 5-10 Year Dividend Payers on page 51.
funds.
Following similar trends, trustees
of
Building Machinery)
middle
been
con¬
fixed
to
New
obligations modified their
policies. The Retirement System
7.09%
of the Federal Reserve Banks, for
Circular
Upon
example,
Request
made this change. An
investment
in. common
initial
fl.97
451/4
4.4
75
3.00
571/4
5.2
20
1.20
23 %
5.2
60
5.50
116%
4.7
25
1.75
$18%
9.5
15
2.10
36
5.8
20
1.50
63
2.4
82
1.20
24%
4.8
89
2.00
26%
7.5
Cq^_ 115
1.20
28%
[1870]
New Haven Water Co
public utility
Operating
income
YIELD
84
Hampshire Fire Ins
Diversified insurance
in
Conn.
[1879]
New York Fire Insurance—
Diversified
New
insurance
[1934]
York Trust Co
[1894]
stocks
amounting
to
approxi¬
mately $1,000,000 was made in
early 1948. Two years later, this
had grown to some $10 million, or
SWIFT, HENKE & CO.
135
SO.
LA
SALLE
CHICAGO
ST.
about
ILL.
3,
fund
10%
of
total
has
now
invested
in
assets.
$18
over
to about 13% of assets.
Added
If
you
want
Just
:
let
us
mon
stocks,
stocks
[1929]
Newport Ele
equal
situations"—we
Joint
by life insurance
ids
and
Special Situation Specialists
We
like to
flow
of funds
operation
people included
We love to hear the phone
ring.
plans
the
and
are
in
now
number
as
_
[1872]
[1839]
insurance
Shore
Natural
.
[1365]
River Insurance
North
of
__
rasps
variety of hardware
Diversified
into pension
profit-sharing trusts has been
substantial. Pension
get letters—
North
and
Judd
&
Wide
Rap¬
[*1934]
Makes files
North
Pension Funds
The
operator of Whirlpool
Bridge
Nicholson File Co._
com¬
panies in certain states.
are
[1939]
Niagara Lower Arch Bridge
Flow of Common Stocks Into
"special
Co.—
„
know.
If you wish to know about
kc
.
Island^U'tiiity
Rhode
these
important
changes was the liberalization of
laws to permit purchase of com¬
report—or iquote
a
On any over-the-counter
to
The
—.—
''The/New Yorker'
Publishes
million
stocks
common
Yorker Magazine
New
Gas
10
3.40
14
0.70
7%
9.2
10
1.56
27%
5.6
44
Co
supplier
gas
4.2
]
2.50
61
4.1
61
5.6
Illinois
in
[1944]
follows:
No. of
Northern
Cranes
Engineering Works
and
[*1940]
hoists
People
*
Year
BARCLAY INVESTMENT CO.
39
ANdover
Plans
1930
1954
S.
LA
SALLE
STREET
3-7055
CHICAGO
It
3,
in
ILL.
—
is
(Mill.)
740
estimated
pension funds
Northern Indiana
2.4
16,000
Pub.
Serv.
electricity supplier
[1944]
12.2
—
Gas
&
Northern Insurance
that
assets
amount
to
now
Diversified
insurance
Y.)
(N.
[*1910]
some
*
$17 billion. The volume of money
flowing each year into these pen¬
Previous record, if any, not available,
t Adjusted for stock dividends and splits.
sion
trusts is in the .'order of
$2
$2i/4
billion. At the present
time, contributions
being made
into pension plans are consider¬
ably
greater
than
payment to
to
An Investment in
a
beneficiaries.
BIGGER
visions
TOMORROW
for
the
as
'
high
profits
In
past
addition,
services
level
have
of
in
large
position to
buy-
part
of
which
has,
either by necessity or
design, been
directed toward common stocks.
Of the total 16,000 pension
plans
now in
operation, about one-tenth
TELEVISION and ELECTRONICS
Your medium is the diversified
investment fund of
are
managed by banks and trust
companies. The great majority are
administered
electronics securities—
panies.
TELEVISION-ELECTRONICS FUND, INC.
'
Prospectus
on request
from
t
your
investment dealer
•
135 S. LaSalle
St., Chicago 3, 111.
or
MANAGEMENT CORP.
surance
stocks
of
investment operation. The
of the other 10%
of
Broadway, New York 6, N. Y.
emphasis
In
general,
on
good
stake
a
in
the
listed
order for
common
on
in
any
or
unlisted
market.
We
publicly traded security,
invite
or your
request for information.
A. G. Becker & Co.
INCORPORATED
Chicago
New
120 So. La Salle St.
York
54 Pine St.
San
Francisco
465 California St.
common
stocks.
wide divergence in
Continued
either
are
we
competent execution of your order
,Members
corporations
with pension plans desire to have
But there is
in
your
assure
exchanges, and with active
principal offices,
our
com¬
are
pension funds, however, put very
a
115
insurance
managers
stocks.
SHARES
by
Common
necessity not of any particular
significance in the overall life in¬
important
TELEVISION
As members of the stock
trading desks in
a
Unlisted
corporate
resulted
initial payments into these funds.
This has created a vast new
power,
or
—
well
ipg
Through
I
Listed
pro¬
as
page
43
New York Stock
Exchange
Midwest Stock Exchange
American
Exchange
San Francisco Stock Exchange
Stock
Continued
THE HIGHEST STOCK MARKET
Cash Divs.
No. Yrs.
consecutive cash
paid.
which
from
Consecutive
Paid in
tion
% Yield
Dividends
1953
Dec._31; Based on
1953 Div.
Incl. Extras
1953
Paid
$ *
brackets indicates time
Year in
Approx.
Quota-
dividends have been
-
..
Northern Oklahoma
1.00
18
Gas Co.
.
6.7
$15
Northern Paper Mills
2.80
11
-----
2.4
$115
Specializes in tissue paper [1943]
(Chicago)
Northern Trust
2.7
445
12.00
44
__
[♦1910]
79
Northwestern Natl. Ins. Co.—
3.3
61 Vz
2.00
••
Chemical
Distributes
[1931]
Ohio Water
treated
$43
water:
of , total
amount
1.00
8
in
stocks
common
The
composition
23y4
6.5
391/2
1.50
Falls
show
would
0.90
17
as
dis¬
stock
common
Cumul.
f 1.56
$45
1.25
31
4.0
Public
18%
Utility
Chemical
6.7
15
&
15
♦
[1936]
18
5.9
25%
1.50
16
68
2
2
76
Groups. 24
The
on
44
page
Trading Markets in the Following Securities:
Northwestern Public
Service
The excellent record of
stock
stocks
common
•
especially in the past fewhas
years
policy, apprehensions about a de¬
to
folios.'
it
made
manage
Of
appear
stock
common
-
easy
port¬
the:
is
danger
some
/-
business
by
exposed
cycles
are
that
fact
false
this
have
may
of
created
for
yield
capital.
the protec¬
and
To
a
certain
ex¬
sense
Ulti¬
security.
that
ment is not
investment
simply
a
recog¬
buying oper¬
is
reflected
in
individual
the
in different groups and
of others.
are
se¬
varying proportions
the
For
omissions
example, railroads
Steel
avoided.
generally
ation confined to
*
Giddi'ngs & Lewis Mach. Tool
Pheoll Manufacturing
Kerr-McGee Oil Industries
and
heavy
have
equipment
been
less
eagerly
sought despite good earnings and
Over
names.
a
period
careful selection and
stock
common
with
of
issues,
provide
assurance
time,
rejection of
together
attention to relative
should
values,
reasonable
some
of continuing success
On the other hand, public
the
investment
for
trust
yields.
comparatively
and
of
common
pension
in
stock
funds.
Public Utility Specialists
74
For Over
Forty Years
approximate average yield
common stocks in a
of pension and profit-
is
from about
may run
4%%
to
where
more
extra
growth.
on
yields
income,
on
em¬
If the
might range from 4%% to about
5%%.
-
Kentucky Utilities Co.
stocks
a
small number of the better known
portfolio
Northern Indiana Public Service
*
common
and
metals
produced by
stress
.
Jefferson Electric Co.
,
inaction.
non-ferrous
agricultural equipment stocks.
antidotes
into
100
Other
All
phasis is put
Bros. Gear & Mach.
baccos,
72
-
Paper & Products.
sharing trusts
Detroit Harvester
2
i.__—
4V4%
Fanner Mfg.
70
2
Food
Rubber & Products
Continued
Central Electric & Gas
rising stock
to¬
66
2
and
[1938]
Minn.
a
strong
it affects
as
A- steady
of
textiles,
63
3
Ins
Trade
Auto
record, if any, not available,
t Adjusted for stock dividends and splits.
t Earlier quotation. Dec. 31 figure not available.
Foote
stream of funds and
Insofar
bearishly,
talked
bullishly.
the
60
3
4.0
211/4
0.85
Previous
Active
has
action
price
as
of
more
55
Retail
&
Building
Co
&
He
acted
the
48
7
Drug-
5
.Banking
8.1
211/2
1.75
18
Corp
Dakotas
but
groups
is
33
Electrical Equipm't
$13%
$0.92
14
''Sealright" containers [1936]
Utility:
ings.
market
hold¬
utility stocks for protection and
3.5
[1940]
shirts
stock
common
such
stocks
follows:
Non-Ferrous Metals
Otter Tail Power
his
2.3
Household Products
Oswego
recent
tained
Indicative
characteristics
business, but he has re¬
lections,
stock portfolios
18
B'Gosh
obligations.
y
these
tent, the influence of these factors
of
common
varies a great deal
depending on policy. But a good
cross
section
of
pension
plans
1.3
79
1.00
30
19
Manufacturing Co.
de¬
a
manage¬
the
nearer
Composition of Common Stock
[1936]
Overalls & work
cline in
about
nition
middle, probably
figure.
Oil and Gas
Oshkosh
apprehensive
tion of
4.7
10%
0.50
[1935]
Industrial brushes
come
been
com¬
parison to good quality fixed in¬
a
upper
wholesale#
Oneida, Ltd.
has
manager
that
fact
be hazardous
mately, there has to be
Total
Osborn
investment
the
can
>
18
National Bank
stocks
things to hold, especially in
Stock Investment
The
ignored
or
a
[1937]
Silverware
of Caution Regarding
desire
tribution about
Omaha
mized
committee.
Word
of
managers
have forgotten, mini¬
may
offset by the fear of inflation, the
12.5
<■;
[*1924]
Old Kent Bank (Gr. Rapids)
funds
from 15% to 35%. A good
average would be somewhere in
ranges
9.3
I193S1
untreated
in¬
common
A
favorites.
cases,
the
4.00
1
Retails
the
Portfolios
Service
his
on
some
.
invested
assets
particular
In
pression and the hazards that are
/
[1939]
health
&
goes on.
Typically,
15
Co.
accident
3.0
18
■
Ohio State Life Insur. Co.__
Life,
0.45
22
and box matches
Book
15
obligations of the companies.
Hence, the desire to obtain good
yields may become greater as time
[1925]
Co
Upper leather for shoes
Ohio Match
vestment
are
are
been
respect, rhe
it
blame
theorizing
factors
sion
'vY/YY:
29
Ohio Forge Machine Corp.__
Gears, speed reducers, etc. [1936]
Ohio Leather
always
can
this
against
shaving
& medicated cream
cream
fortunate:! in
market
these
of
4.7
A.
-
A;
.
Co.——
"Noxzema"
too
chemical- stocks for growth have
And if he has not been
almost
Both
211/4
1.00
24
Supplies electricity to Nova Scotia
[♦1930]
::v- ,' 1
Noxema
may
lections.
certain to increase the cost of pen¬
[1936]
Scotia Lt. & Pwr. Co.
Noya
likely to be liberal¬
also be expected
pensioners will live longer.
are
It
that
6.3
311/2
2.00
18
Cement Co.
producer
purchase of company stock is not
permitted. Nor is it permitted by
some to purchase stocks of com¬
ized.
Northwestern States Portland
Iowa
part to their own stock. In others,;
benefits
[1875]
Fire underwriter
gauging economic trends and
sagacity in making stock se¬
his
panies in the same industry.
Investment policy is directed to
a certain degree toward obtaining
a
fairly good average yield. The
purpose of this is to reduce the
cost of pensions to the company.
There are indications that pension
[1936]
Operating public utility
in
from page 42
policy. In extreme cases, some
companies confine their common
stock investment in whole or in
IN AMERICA
43
(1571)
Commercial and Financial Chronicle
Number 5314... The
Volume 179
Investment
philosophy and pol¬
Public Service Co. (N. Mex.)
icy,
W. J. R. The Goodwill Station
Koehring Co.
Liberty Loan Corp.
class
Brunner
A
Steel Products Engineering
Manufacturing Co.
Drewry's Limited U. S. A.
indicated by the action of
as
certain
there
Members:
Detroit
Stock
N.
Y.
Stock Exch.
Exeh.
135
Midwest Stock
American
SOUTH LA
Stock
SALLE
CHICAGO
Exchange
Exch.
{Associate)
For
shows
groups,
better
known
the
some,
of
lack
on
the
companies.
for
need
liquidity has attracted them, par¬
3, ILL.
ticularly larger
ones,
situations.
STREET
Telephone ANdover 3-5700
and
fairly strong emphasis
a
quality of holdings and
on
larger,
STRAUS, RL0SSER A McDOWELL
stocks
is
principal induce¬
ments
Teletype—CG 650-651
The
the
be
to
seem
into special
greater
yields generally available and the
opportunity to put comparatively
large
in
sums
one
situation.
The
great vari¬
ety of selections possible in com¬
mon
stocks
has
ticipation in
has
Specialists in
in
also
block
encouraged
fields.
many
sizable
been
form
to
par¬
There
purchasing
overcome
Madison Gas & Electric Co.
Black Hills Power &
♦Central Illinois Electric & Gas Co.
^Central Vermont Public Service Co.
♦Iowa Electric Light & Power
policy of
♦Iowa Southern Utilities Co.
The flow
Jamaica Water Supply Co.
lar
not
averaging
the only,
vestment
is such that dol¬
is
the
logical, but
Co.
Portland General Electric Co.
♦Public Service Co. of New
Iowa Public Service Co.
pension fund investing.
Securities
Northwestern Public Service Co.
♦Otter Tail Power Co.
Indiana Gas & Water Co.
perhaps,
of pension funds
Missouri Utilities Co.
^Northern Indiana Public Service Co.
Central Maine Power Co.
has,
averaging
Michigan Gas & Electric Co.
Light Co.
been the most dominant
Over the Counter
i
Lake Superior District Power Co.
♦Arkansas-Missouri Power Co.
the
difficulties of small lot buying.
Dollar
♦Arizona Public Service Co.
time
at one
to work
.'-M
♦Southwestern Public Service Co.
♦Southwestern States
♦Kentucky Utilities Co.
♦Wisconsin Power & Light
approach to the in¬
i-
ly, it is appealing to most
agers.
When stocks
are
and
H.M. Byllesby
and
£
(Incorporated)
CHICAGO
135
South LaSalle
Company
1500
Chestnut
Street
Telephone: FI 6-4600
Telephone: RIttenhouse 6-3717
Teletype: CG 273 & CG 2860
Teletypes: PII 606 & PH 607
cost
value, there is
fort that
PHILADELPHIA
Street
especially if they
men
a
one
investor
dollar
kit.
and
below
is
a
to
the
^
Incorporated
CoWlVUTlU
.
*
C/
averaging is
of the most useful tools in the
If quick market
.•
Investment Bankers Since 1912
long-term
appreciation
has been obtained, it is, of course,
due
'H and
com¬
enjoy by saying or
thinking that
one
certain
,
%
man¬
depressed
are
Telephone Co.
Co.
*Offered by Prospectus
problem. Psychological¬
Hampshire
Southern Utah Power Co.
manager's
astuteness
Chicago
New York
Boston
(
44
The Commercial and Financial Chronicle t;.
(1572)
the
,
Urge Curtailment of Treasury's Power to
Sell Bonds Directly to Reserve Banks
Economists'
of
Members
Committee
National
"Such limited overdraft
consistent
propose,
functions
,
Sixty
the
Economists'< National
mittee
that
ommend
porary
the
law,
Com-
Policy,
Monetary
on
of suggest that the Federal Reserve
members
economists,
^present
which
banks
the
rec-
the periods
.
not
000 of its securities
limit the total of
directly to the
newed when it
The
1954.
expires
Instead
of
the
present
the
any
to
days.
would
such Treas-
$1,500,000,000.
these economists regard
legal authority is held
authority,
economists
overdrafts
ury
by the economists to be unsound,
rary
the
the
purpose.
The
tempo-
economists
safe for
as
Treasury
overdrafts
useful
as
to
are
both
on
the
the
reads.
statement
dividends
of this
"is
Pabst
with
needs
the
of
fiscal
and
undersigned,
1st
Midwest
Stock
Exchange
FLOOR KENTUCKY HOME
Bell
Teletype LS 186
which
or
the
LIFE BLDG.
of
Local
INVESTMENT
of
THOMAS
GRAHAM. Manager
HECTOR
W.
WILLARD
E.
P.
C.
JAMES
WOOD
BOHNERT
HANNAH,
CHARLES
McNAIR
POWHATAN
LEWIS
ROBERT
M. FETTER
H.
ROBERT
Asst.
Mgr.
CONWAY
M.
JOHNSTON,
United
the
E.
from
PLRYEAR
States
to
as
authorized
the
United
probably
Dealers
should
not
amount of
the
Federal
to
purchase
Treas¬
exceed
the
five
maximum
FLORIDA MUNICIPALS
(for
V
.!■
i.
■
..
,
on
the
6.3
$1.52
$33%
4.5
13
0.30
41/4
7.1
[*1941]
insoluble
19
Michigan producer
0.80
12
6.7
13
1.75
30
5.8
15
i
[*1935]
paper
[1941J
0.60
$6%
9.1
Pennsylvania Co. for Banking 140
2.05
45
4.6
0.80
16%
4.8
Abrasives
[1939 J
[1314 J
public
and
Co.
utility
New
75
in
York
Penn¬
[1381]
Table II. 5-10 Year Dividend
Payers
on
page
51.
Peoples First National Bank
'
i
&
■
Trust
Co.
(Pittsburgh)
87
2.00
45%
4.4
37
1.00
18%
5.4
17
1.20
31%
3.8
[1867]
Perfection Stove
Heating
and
cooking
appliances
[1917]
-
Permutit
Water
Peter
Co.
softeners
Paul
[1937]
4.6
12
$0.75
22%
3.3
1.80
25%
7.0
•
Mulliken
track
equipment,
lngs and machinery [1942]
resistant
equip.
Y
[1940]
port of the Board of Governors of
the Federal Reserve System for
Pheoll
33
1.40
14
10.0
Philadelphia National Bank. 110
5.00
106
4.7
pp.
As
Securities
to
a
bank
during
riods
these Treasury
reserves,
overdrafts
McCLEARY & CO.
:
forg-
Co.
Corrosion
8.3
38 V4
[1931]
Railroad
Pfaudler
24
1.75
14
compounds
Pettibone
2.00
23
I1Q241
Corp.
Chemical
,
v
20
PcDiilar ce.ndies
Petrolite
■
.
Co
the Annual Re¬
96-97),
stabilizing mechanism in
the money markets and in respect
Florida Corporate Issues and
Local
of
Market Committee
example in
127
1948,
'
■
stipulations
Open
8.00
4.4
securities,
such certificates which
common
*'
68%
34
Parchment
Sc
sylvania
hold at any one time could safely
be put at $1.5 billion, judging by
CORPORATE BONDS & STOCKS
3.00
[1936]
Peninsular Grinding Wheel__
to
the Federal Reserve banks should
Inquiries Invited
Waxed
Operating
States
Apparently
"
[1935J
Peerless Cement Corp
banks
,
days.
19
18
insurance
Beverage bottling
authority
Reserve
Government
be
Indemnity (L. A.)___
Pennsylvania Gas
overdrafts. The maximum period
during
which
these
overdrafts
(special certificates) might run
Distributors
7.3
Paterson
principal
so-called "one-day" Treasury-
ury
Underwriters
$11
__
vegetables
Panama Coca-Cola
fully guaranteed by
Federal
should
Jr.
0.80
6c
Automatic wrapping machines
[♦1920J
recommend
up to $5
directly from the United
States Treasury, and in the inter¬
est
of
orderly money markets,
particularly during taxpaying pe¬
riods, the Federal Reserve banks
KING
C.
18
Robinson
fruits
~~
•
Package Machinery
billion,
DEPARTMENT
3.5
i;41.
[*1910]
Planing mill products
of any type or maturity
Securities
85
Insurance
insurance
Gamble
Diversified
the
the
Policy,
are
purchase
Kentucky Municipal Bonds
3.00
Committee
In lieu of the present
Long Distance 238
44
Fire
(1943J
cars
Pacific Lumber Co.
and interest," not be renewed.
LOUISVILLE 2, KENTUCKY
4.6 *
11936 J
[1936J
which
permit the Treasury, until July 1,
1954. to sell directly to the Fed¬
eral Reserve banks up to $5 bil¬
lion of "any bonds, notes, or other
obligations of the United States
INCORPORATED
Member
39%
Diversified
that those provisions of Section 14
BANKERS BOND 1
f 1.82
Pacific
of the Federal Reserve Act,
THE
11
brewer
railway
Pacific
mon¬
National
Monetary
'
3.9 V
Makes
the
we,
members
Economists'
on
1953 Div.
--
-
18%'
sounder
affairs
1953
-
Based
f0.74
Pacific
of
management of this nation's
on
Brewing
Wholesaler,
interests
Incl. Extras
-
31,
Pacific Car & Foundry Co...
follows:
the
Paid
paid.
Approx.
lion--'% Yield
Dec.
18
The text of the recommendation
In
been
Quota"
..
market."
money
1953
es¬
basic condition for sensitive
a
have
Well-known
independence," it continues,
contact
Paid in
$
econo¬
"The
Cash Divs.
Dividends
Year in brackets indicates
time
from
which
consecutive
cash
behalf of the
former,"
No. Yrs.
Consecutive
'
_
Reserve
jeopardize the independ¬
of
etary
recommended
Federal
f
IN AMERICA
wholly
fiscal-agency
tablishment and firm maintenance
for
This figure is the maximum which
July 1,
on
five
exceed
to
Moreover,
Federal Reserve banks, be not re-
over-
certificates)
Treasury to sell up to $5,000,000,-
the
is
V
ac¬
States Treasury, would in
way
mists'
temporary
(special
no
ence
authorized to buy from
Treasury
drafts
tern-
allows
be
of
the
banks performed
United
-
which
with
'
•
v.
THE BIGGEST STOCK MARKET
temporarily out of bal¬
very
ance.
commodation,
instead, Federal Banks be authorized to buy
Treasury's "temporary overdrafts" not to exceed %\l/z billion.
Policy
are
Continued from page 43
System at times when rev¬
receipts and expenditures
enue
Monetary
on
Government and Federal Re¬
serve
Thursday, April 8,195|
particularly useful
are
taxpaying
quarterly
when
tax
receipts
do
pe¬
not
Manufacturing
Screws,
bolts,
[1921]
nuts
[1844]
Philadelphia Suburban
Transportation Co.
Operates
street
ry.
14
Philadelphia Suburban Water
Operating
public
utility
2.00
.
$28 i
[1940]
lines
7.1
/
15
1.00
79
3.40
25
6.00
91
6.6
41
3.00
56
5.4
52
1.9
[*1939]
INCORPORATED
match
Members
Nero
York
Stock
Philadelphia-Baltimore
556
ST.
TELEPHONE:
Exchange
Stock
Exchange
PETERSBURG
7-5131
LD-32
1,
curities
FLORIDA
TELETYPE:
ST
at
PBG
82-089
for
the
Government
those
redemption
CENTRAL AVENUE
as,
for
se¬
Treasury
example,
outlays,
required
of
scheduled
quarterly
for
retirement
taxpaying
Such limited overdraft
periods.
accommo¬
Phoenix
Fire
Wire
to
Kidder, Peabody
&
Co., New
Operates
linas
t
fiscal-agency
functions
of the Federal Reserve banks per¬
formed
the
dealers
CORPORATE
BONDS
BONDS
the
of
independence
maintenance
pendence is
sensitive
a
contact
cedure
in
this
termination
public
*JOHN
COLA
COMMON
BOUGHT
COMPANY
-
F.
quotation.
this
of
C.
Western
{/
JOHN
with
of
the
National Bank
Boston
H.
ATLANTA
Augusta
3,
Direct
Columbus
1921
8c
L.
D.
384
H.
KIDDER. PEABODY
8c
CO..
YORK
A.
York
Lehigh
to
New York Correspondent
University
ESTABLISHED 1920
,
BELL
Johnston, Lemon & Co.
University
MEMBERS
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
Oxford,
Ohio
UNDERWRITERS
BERRIDGE
Life
Insurance
Co.,
-
DISTRIBUTORS
-
-
DEALERS
New
City
Savanna'A
NEW
our
BELLEMORE
Southern
Building, Washington 5, D. C.
BOGART
Telephone:
City
FREDERICK A.
PRIVATE WIRE: TO
»v|
University,
ERNEST L.
New
Macon
Wire
Publishing Co.
Metropolitan
York
Main
Private
Carl M. Loeb, Rhoades & Co.,
BENEKE
Miami
GEORGIA
Tel.
SECURITIES
University
WILLIAM
Bell Teletype AT 596
available.
Markets In
WASHINGTON
practices.
present
WASHINGTON
DOUGLAS
>H.
Building
not
ARBUTHNOT
Northwestern
First
figure
requires
BECK
Oklahoma
incorporated
31
needs
Sound pro¬
respect
Reserve
W.
JAMES
Clement A. Evans 8c Company
Dec.
Firm
inde¬
University
CHARLES
SOLD
Co..
[1913]
of
ADAMS
Temple
STOCK
Water
utility
Previous record, if any, not available,
Adjusted for stock dividends and splits.
t Earlier
SIGNED
COCA
Caro-
basic condition for
of the money market.
STOCKS
in
the former. The establishment and
firm
MUNICIPAL
line
no way
on
jeopardize
DISTRIBUTORS
electric
United
Treasury, would in
States
UNDERWRITERS
behalf
3.3
[1929]
Operating
*
the
101%
[1875]
Plainfield-Union
dation, which is wholly consistent
York
(Hartford)-.
Piedmont & Northern Ry
with
Private
Insur.
underwriter
BRADFORD
on
3-3130
Branch
University
Continued
Sterling
page
46
Bell
Office:
Teletype:
Alexandria, Va.
WA
95
&
W'A
28
Number 5314i.. The Commercial and Financial Chronicle
Volume 179
'r.v
•
■
.
1
t,
►
'
.
'
J1573)
*.-7
<t
AS
.
«*»•
Bache Will Have HQ
At ANPA Meeting
THE BIGGEST STGOK-MRKET
IN AMERICA
No. Yrs.
from
consecutive
dividends
have
been
Paid in
Dividends
1953
Paid
Incl. Extras
42
which:
Cash Divs.
Consecutive
14
Year in brackets indicates time
cash
paid.
Approx.
tion
% Yield
1953
2.25
58%
3.8
0.80
8ys
9.8
Stock
tain
Peanut
products
Rope,
binding
Bituminous
94
the
20
6.0
17
2.25
32%
oil
6.9
was
•
3.9
82%
3.25
ters
47
Foreign
and
business
1.50
277/s
and
firm
domestic
Geller-
holds
its
by Henry Geller-
Public
Municipal Bonds and Corporate
Relations.
to establish
the
at
5.4
35
0.70
16
4.4
Securities
yearly session
of
Local Industrial &
the
banking
Utility Stocks
A., and 1954 will mark the
be represented at the
Trading Markets
gathering of
:
Retail Distribution
publishers.
newspaper
[-1919]
<
headquar¬
fifth year in which the firm is to
[1907]
underwriter
Provincial Bank of Canada..
Mr.
Newspaper
Association
.
Providence-Washington Ins..
to
»*.'
Wal¬
the firm's Director of Ad¬
A. N. P.
Fire
the
Bache & Co. is the only invest¬
ment
163
in
American
announced
mann,
[1937]
interests
according
meeting in New York, it
vertising
Providence Union Natl. Bank
[1791.]
1.20
annual
5.6
[19341
coal
and
46%
[1860]
etc.
Co., Inc.—
Potash Co. of America..
Potash
2.60
20
l
twine,
Pocahontas Fuel
facilities
Publishers
tools, [1939]
Plymouth Cordage
needs,
mann.
Exchange, will again main¬
guest
when
__
hand
Mechanics
opportunity of reviewing its
advertising ^nd public relations
dorf-Astoria the week of
April 19
[1912]
Plomb Tool
the
36 Wall Street, New York
City, members of the New York
$
Planters Nut
from all sectors activities as they apply to local
country afford^Bache & Co--1 Conditions and existing marketing
Co.,
Based on
1953 DiV.
31,
of the
The investment firm of Bache &
QuotaDec.
paper executives
These meetings with top news-
PUBLIC NATIONAL BANK
TR.
&
COMPANY
38
(N. Y.)
501/2
2.25
4.5
L1916]
•
See
thi
this
for advertisement of
fil
page
STRABER, TAYLOR & CO., INC.
bank.
17
1.80
27 V4
6.6
12
0.56
10%
5.2
18
2.00
25%
7.8
11
1.275
241/s
5.3
Public Service Co. of N. H...
'
Electric utility [1937]
Public Service Co. (N. Mex.)
New
Mex.
elec.
LD 39
TWX LY 7?
i','5
Publication Corp.
Owns
LYNCHBURG, VIRGINIA
[*1942]
supplier
printing plants
rotogravure
[1936]
Puget Sound Power & Light
Operating public utility
[1943]
1 1932 I
I 1954
(fall JLynrMmy
Table II:
5-10 Year Dividend
12
Purex Corp.
Makes
Payers
51.
on page
0.60
8ys
oil,
Filters:
gas
13
—
and
air
on
7.4
Boston
Purina
Animal feeds,
7.6
15%
12
10.00
2.00
12
—
Active
1.20
21
—
18%
1
Dry batteries, flashlights, etc.
|
72
hole
button
mach.
injection
moulding
17
9.1
4.9
and
Reinsurance Corp. (N. Y.).__
{ Writes only reinsurance [1937]
Fire
and
[1919]
•
1.20
35
insurance
•
*
2.4
35y4
3.7
★
|
fl.49
51 y2
near
12
0.60
6%
9.1
18
Boston
Island
1.60
23
7.0
85
7.00
170
4.1
Previous
t Adjusted
*
★
greaseproof packag-
OF
NATIONAL AMERICAN BANK
Hospital Trust
if
any,
AKRON, OHIO
NAT'L BANK OF COMMERCE
CAPITAL STOCK
PROGRESSIVE BK. & TR. CO.
record,
l5'
First National Bank
LA. BANK & TR. CO.
[1869]
*
p
Specializing in
ing paper [1936]
Rhode
DISTRIBUTORS
HIBERNIA NATIONAL BANK
[1942]
Rhinelander Paper Co
Glassine and
VIRGINIA
and
2.9
Natural gas & oil producer [1937J
racing,
UNDERWRITERS^
ISSUES
17
Revere Racing Assn
,
LYNCHBURG.
/«•"
fl.30
34
[1920]
Republic Natural Gas
51
•"
t
Republic Natl. Bank (Dallas)
Dog
VA.
SCOTT, HORNER & MASON, Inc
,
LOCAL CORPORATE
..
Co
casualty
'
'
MUNICIPAL BONDS
BANK STOCKS
mach.
[1940]
Republic Insurance
not available,
for stock dividends and
WHITNEY NATIONAL BANK
splits.
Continued
on
page
46
Bought
—
Sold
Quoted
—
Scluarff L Jones
imCOHPCA'CO
219
DEALERS
IN
ORLEANS
Teletype
NO
180
W. F. KURTZ & CO.
CAR0NDELET STREET,
NEW
i
&
,
181
UNION
12, LA.
Shreveport, La.
COMMERCE
CLEVELAND
Telephone
Tulane 0161
CV
MUNICIPAL AND CORPORATE
14,
BLDG,
OHIO
MAin
162
1-2432
Jackson, Miss.
SECURITIES
SPECIALIZING
IN
OHIO
MARKET
DAYTON,
OHIO
V
WM. J. MERICKA
MEMBERS
MIDWEST
STOCK
(r
Co
INC
Over-the-Coun
Specialists in
V
EXCHANGE
:
Direct "Wire-
Joseph McManus & Co., N. Y.
|
CORPORATE STOCKS & BONDS
NORFOLK, VA.
ILUEf®, W.
LOUISIANA
9%
0.45
MUNICIPAL LM
ROANOKE, VA,
8%
0.75
i
V
[1882]
Reed-Prentice Corp.
Plastic
LYNCHBURG, VA.
CORPORATE LYtt ft 69
W. VA.
UNLISTED SECURITIES
in
'
7.3
11
0.80
14
(Mass.)
Corp.
Pf mmm;
DANVIUE, VA.
[1933]
Makes
H. CAR.
RICHMOND, VA,
Trading Markets
6.6
•
TELEPHONEil-^iL
VIRGINIA
MB#
|
2.9
69
breakfast foods
Ray-O-Vac Co.
Mississippi
Municipal Bonds
8.9
112
[•1942]
'
*
all issues of
[1942]
operation
Ralston
-jT-19
[1941]
Quincy Market Cold Storage
:
v:-;;-\
Immediate Firm Bids
Louisiana &
Purolator Products
Reece
,
"Purex," and "Trend"
[♦1942]
i
L
Union Commerce
Bldg.
.
*
1
Grant Brownell & Co.
CLEVELAND
C. C. McCune & Co.
.,
Fred C, Yager. Inc.
i
46
The Commercial and Financial Chronicle... Thursday,
(1574)
"
1
"
'
'
"
'
'1
'
..
Continued from page
D.W.ELLSWORTH
44
Continued
Inc., Tarrytown, N. Y.
FAIRCHILD
R.
Yale
Urge Curtailment of Treasury's Power to
Sell Bonds Directly to Reserve Janks
Axe & Co.,
W.
E.
FRED
New York
Buffalo,
■"—■MAJOR
FICHTNER
C.
RAYMOND DE ROOVER
CRAWFORD
Chevy Chase, Maryland
JAMES
Wells College
ARTHUR W.
institute and
Hamilton
No. Yrs.
York
ALFRED
New
Co.,
University of Texas
HUDSON
BERNARD W. DEMP8EY, S. J.
Illinois
Richardson
Plastic
Young
University
J.
The
% Yield
Based on
Paid
Inch Extras
1953
1953 Div.
paid
22
'
'
A.
J.
Steam
an
active retail interest in:
a.
College
h.
Metal
N. y. C.
Building
Chicago,
W.
H.
76
*R.
Hudson
;•
*
supplier
■
„
Southern California
of
G.
14
5.7
1.00'
13%
7.3
2.90
60
40
0.60
141/4
4.2'
17
2.00
231/g
8.6
<13
CO
i
R.
TRADING MARKETS
Ross
»
,
GLENN
N. Y. C.
E.
New York
WILLIAM
H.
;
" + :
GILBERT
Mt.
R.
Milling,
American Small Business
Illinois
*r
spinning
machy.
1.25
1.00
21
1.25
.
35
3.6
13%
7.3
17%
v
7.0
[1938]
rail¬
•7."
.7
STONE8IFER
.
;
Mercersburg Academy
Sateens,
[19361,
i
-
broad
cloths,
twills
*
•'
7;
.
.
Maine
University
.
/
High
VAN SICKLE
kraft
pulp
v
.
&
■.
8.0
7 "■
4.00
■
*
-
..
,
"
21
0.32
$24
1.3
.7 -
paper
•
_
[19331
\j
St. Louis,
Consultant,
'■*
7.0
57%
College
Economic
}
i,,
V-
34
producefg [1920J
grade
77
•.
.
St. Helens Pulp & Paper Co.
:
8.00 $100
r
St. Croix Paper: Co
.y'r
7
18
Sagamore Mfg. Co
/
>
V. ORVAL WATTS
CALIFORNIA
20
-V
<
STEINER
Louisiana State
& Co.
7.9
-V
[*1934]
Lights and air conditioning
way cars [1933]
SPAHR
„
feed
Safety Car Heat. & Light. Co.
University
JAMES B. TRANT
Wabash
9%
•
webbings
Milling
elevator,
Textile
SHIELDS
Union College
JOHN V.
0.75
16
and
Saco-Lowell Shops
T
CHARLES S. TIPPETTS
i
31/8
6.4
14
Co
fabrics
Russell-Miller
i
Brooklyn College;
SECURITIES
0.20
[1940]
University of Florida
ISSUES
6.7
56
royalty interests [1943]
Mfg.
"Lastex"
SAXON
of
W.
11
•
Oil & gas
Russell
Organizations,. Chicago,
C0AST
3.75
,
Royalties Management Corp.
University
MURRAY
26
ROBINSON
HARLAND SHAW
WALTER
Gear & Tool___^__.»„_
Steering gears [1928]
^
Calif.
REX
Conference
Specializing in
[1937]
f
REUSS
University of Michigan
Yale
[*1914]
Table II: 5-10 Year Dividend Payers on page 51,
RODKEY
OLIN
1
electric
*
Beaver St.,
G.
shore
west
Rockwell Mfg. Co
Meters, valves, specialties
College
Stockton,
Altadena,
Calif.
*•
'
Roqky Mountain &
Pacific Co.
>13
1.25
26
4.8
*
EDWARD
J.
WEBSTER
.
Clearwater, Florida
LA
0.80
[1926]
Rockland Light & Power Co.
V
RITTER
LELAND
TELETYPE
5.0
Pennsylvania
of
University
530 WEST SIXTH STREET • LOS ANGELES 14,
541/4
PHELPS
Goucher
O.
^
j
University
FREDERICK
Kraft
t2.73
\
PATTERSON
York
CLYDE
O&car
4.6
[1925]
Illinois
ROBERT T.
►
f
12
[1936]
: Boston
PALYI
University
181
New
OVER-THE-COUNTER
0.55
PARKER
♦FRANK
Telephone—JAckson 5065
IN
6.4.
Rockland-Atlas Natl. Bank of
y
University
University
MELCHIOR
OMAHA 2, NEBRASKA
—
55 -
28
Co
(H. H.)
building materials
Rock of Ages Corp.Li—
1 Produces monuments [1941]
/
NIEHAUS
Stanford
180
7 3.50
[1944]
Operating public utility
Mckinley
Seton Hall
FRED R.
Teletype—OM
7.3
AUSTIN S. MURPHY
WASHINGTON GAS & ELECTRIC COMPANY Common
424 Omaha National Bank
21%
18
Co
Rochester Telephone Corp._>
The Pennsylvania State College
EDISON SAULT ELECTRIC COMPANY Common
1.60
stokers
stampings [1917]
Gas
Robertson
wilfred may
david
5.7
California
Financial Chronicle,"
,
26y4
10
equip.,
Operating public utility
Men's
Executive Editor, "The Commercial and
SEATTLE GAS COMPANY Common
metal
Roanoke
KEMP
Wilmington, Delaware
SOUTHERN UTAH POWER COMPANY Common
1.50
14
generating
Small
'
EDMOND E. LINCOLN
SOUTHERN CALIFORNIA WATER COMPANY Common
2.9
[1930]
store
Risdon Mfg.
of Pittsburgh
KEMMERER
Culver City,
We have
416
[1940]
LEONARD
L.
12.00
JONES
L.
Claremont
Underwriters and Distributors
6.4
29
Riley Stoker
JACKSON
University
ARTHUR
$36
24
department
Dayton
University of Illinois
Midwest Stock Exchange
2.30
[1938]
Rike Kumler Co
HUGHES
MONTFORT
Members
4.7
[*1925]
Morgan State College
SMITH, POLIAN & COMPANY
26y2
16
textile products
Riggs National Bank (D. C.)
HOLDSWORTH
University of Miami
The
1.25
29
line
Wide
Economic Consultant, Fort Worth, Texas
DONALD
7.4
greaseproof paper
Riegel Textile Corp
Louisiana
College
Point
FREDERIC
19
37
and
1.40
19
—
[1932]
[♦1935]
HOBART
THOM
HAROLD
Dec.31y
HECK
GEORGE H.
High
Co.
products
Glassine
The Tulane University of
JOHN
Approx.
tion
1953
Riegel Paper Corp
HASTINGS
B.
University
HAROLD
Brigham
St. Louis University
been
Quota-
Paid in
Dividends
cash
Research
Economic
for
Inst,
1
$
C. HARWOOD
Yale
REV.
dividends have
EDWARDS
WILLIAM F.
consecutive
HAAKE
P.
American
of Rochester
The University
City
E.
DUNKMAN
WILLIAM E.
which
from
Cash Divs.
Consecutive
Year in brackets indicates time
"'
University of Southern California
" >
DOLLEY
•
45
page
New
GARIS
Economic Consultant Park Ridge,
The
CUMBERLAND
Ladenburg,
Thalmann
&
WILLIAM W.
'
C.
ROY L.
'
•
IN AMERICA
FOSTER
B.
Alexander
_
CARPENTER
University of Kentucky
C.
from
■
THE BIGGEST STOCK-MARKET
University
CHARLES
York University
CECIL
April 8,1954
'
G.
675
tion
realty
Interests
&
produc¬
[1941]
CARL WIEGAND
University
PHONE TRINITY 2529
Coal
of
St. Paul Fire & Marine Jnsur.
Mississippi
Diversified Insurance
EDWARD F.
[1872]
82
0.90
36% '
2.5
38
1.00
i3y4
7.5
r
„
WILLETT
F. Eberstadt &
St. Paul Union Stockyards...
Co., Inc., N. Y. C.
Minnesota operator [1916]
♦With reservations.
♦
Previous record, if any, not available,
t Adjusted for stock dividends and splits,
Harold Beale Joins
t Earlier quotation. Dec. 31
figure not available.
Standard Coil Prods.
UNDERWRITERS
DEALERS
It
BROKERS
i
1
•W:
■
Specialists in all Arizona Municipal Issues
Wisconsin Market Place
tt
•m
I
y.-y.
1 7
$
ARIZONA
TUCSON
for
u
Trading Markets in Arizona Corporate Issues, Including
m
PUBLIC SERVICE
OVER-THE-COUNTER ISSUES
m
GAS, ELECTRIC LIGHT & POWER
VALLEY NATIONAL BANK OF PHOENIX
M
m
Harold
Established 1931
REFSNES, ELY, BECK & CO.
Coil
Members New York Stock Exchange
old
~
'
Products
F.
Beale
President.
P.O. Box 2190
*
President
of
Standard
Co., Inc., has
M
an¬
nounced the appointment of Har¬
Mail Address:
Teletype PX 488
II
?|
:
Swanson,
112 W. ADAMS ST., PHOENIX, ARIZONA
Telephone ALpine 8-6646
F. Beale
LOS ANGELES, Calif.—Glen E.
as
For
Beale has been
"
assistant
many
a
to
years
INVESTMENT
'
225 E. MASON ST.
Mr.
partner of Lester,
MILWAUKEE 2
fl
Milwaukee Phone: BRdwy. 6-8040
*
M
►
t
'Jl
t
V
?
I
t
*
»•
f
jfc
>
't
k
<
J
J-
*
Ryons & Co., Los Angeles securi¬
I
ties firm.
*
SECURITIES
the
i$gis
TELETYPE
MI 488
Chicago Phone: STate 2-0933
I
n
Number 5314... The Commercial and Financial Chronicle
Volume 179
(1575)
Continued
THE BIGGEST STGCX MARKET
from
■
No. Yrs.
which
lrom
Cash Divs.
Paid in
Dividends
19S3
Paid
Incl. Extras
cash
consecutive
dividends
have
been
paid.
Quota-
Approx.
tion
-theRochester, a plant in Toronto,
Canada, and a British plant (Short
and Mason Ltd.) in London, plus
5
r
1
29
_
800.00
24,000
3.3
,
23 sales offices in U. S. and Can¬
'
1*19253
San Jose Water Works
Operating
41932]
public utility
2.00.
22
5.7
35
ada, Taylor turned in net sales of
$18 million for the year ended
7-31-53, which it converted into
net income of $653,241. This work¬
;
in Calif.
19
4.50
49V2
9.1
30
3.00
53
5.7
14
Sanborn Map Co
Refining
2.40
$42
5.7
[1924]
Schlage Lock Co
•«v
■
—:
Builds
14
0.50
;
8%
0.60
10y4
5.9
knitting machinery [*1940]
Scran ton Lace
L»ce
Co
curtains
■.
table
and
the
Dept. stores: St. Louis,
City; Denver [1940]
Searle
insurance
V
'
V*
/f ,Y-
.
19
1.80
13
4
2.7
66
is
0.375
3.0
12%
a
24 :
2.60
72
3.6
(Boston) /_
35 V' -5.00
122
crombie
1.60
4 43
3.7
73
3.80
125
3.0
Security Ins. Co. (N. Haven)- 60
1.60
36
4.4
2.00 -19
10.5
[*1925]
(L.A.)
[1681]
Shepard Niles Crane & Hoist
Sierra Pacific Power
Operating public utility
»M4sc.
paper
products
[*1912]
150
whole
lot
;
.
2.00 /;32
1.70
28,
Pyrene
30
3.50
L—_
.
-
.
.
FIRST
76y4
171/2
'
2.1
8.9
7.0
$50
1.00
4.4
221/2
Net sales
a
year.-
-the shares
1.75
51 v
3.4
1.50
31
[1923]
Previous
record,
Investment Bankers
,
■
;
:■
i
I'
-
,
'
..
MERCANTILE BANK BUILDING
DALLAS, TEXAS
Working capital posi¬
split,
were
Abilene
•
Plainview
San Antonio
•
Tyler
•
I81/4
8.2
2 for 1,
say
seem
par¬
15
The'
United
Company,
States
Dealers
New Mexico
Envelope
Springfield,
of
Mass.,
is the world's largest manufactur¬
t Adjusted
er
available.
of envelopes.
on
page
48
envelopes
but I'm
Corporate Issues
a
management
happy
events,
all
good
very
in the
was
millions. V At
was
the
Arkansas Western Gas Company
actually produced
the total
sure
hundred
1953
were
201 Second
CO.
Street, N. W.
Albuquerque, N. Mex.
flap
be
must
&
QUINN
and
year,
the net sales total, $41
over
.
Its annual report
for 1953 didn't mention how many
Continued
Municipals
Southwestern
*
if any, not available,
for stock dividends and splits,
t Earlier quotation. Dec. 31 figure not
,
run-
ticularly illogical.
Mechanics' hand tools, etc. [1939]
.
now
.
Snap-On Tools Corp._______
-
are
the decision would not
"
*
_
owns
indicated
$3 dividend rate. There are but
500,000 common shares outstand¬
ing quoted at $70. A random ap¬
praisal here would suggest a def¬
inite
dividend
enlargement
in
the not too distant future; and if
• •
56
Co
Smith Kline & French Labs.
•
Co.
Co.,
tion is excellent andx1952 earnings
of $14.24 a share provide magni-
[1898]
mfr.
DEALER
ficient coverage for the
Smith Agric. Chemical Co.__.
Chemical fertilizers [1924]
L
drug
the
DISTRIBUTOR
UNDERWRITER
District
9.4
.10%
1.55
Well-known
Alarm
lion
[1937]
valves
that
it's listless.
fire
5.2
33
1.00
17"
and
stock
metal
inverted
of
ning at the rate of about $140 mil¬
[1926]
18
(S. Morgan)
a
mean
or
factory,
you'll probably see
52% of
Telegraph Co.
and all of Holmes Electric Protec¬
tive
6.3
'
SkirCorp.
Turbines
i
[1937]
1.60
Smith
not
extinguishers
distributes
American
[1936]
——
listed
Jfrese valves, pipes, fittings, etc.,
4.7
.
49
tools
does
not
department- store
Firms
7.00-
£,■: 42
Sioux City Stock Yards
Iowa operator [1905]
Portable
shareholder—over-
Just because
is
sports¬
of
Extinguishers, controls Automatic
[1935]
Simplex Paper Corp
.
the
a
Corp. of Providence,
Next time you stroll through
Grinnell
19
Shuron "Optical Co.—17
optical equipment
Fitch,
become
the-counter.
INVESTMENT SECURITIES
■
Misc.
may
'
^
.
business
and
For
pointing down from
visible rows of pipes, or from the
ceiling.
Quite likely these are
Grinnell valves adjusted to spray
the whole area, the moment the
atmosphere temperature reaches a
certain critical heat reading.
In
addition to producing and selling
4.1
-
29
Second Natl. Bk. (Houston)
trust
$12;
pays
mushrooms
-'r~.
-..General
and
long-
these, you
Grinnell
look aloft and
[1919]
Sherbrooke Trust Co.__
250
Daisy Company, the can opener
king; Dental Supply, number one
purveyor to fang doctors; Aber-
In all
.
.
hoists
at
obviously
term investment!
sched¬
shortly.
fire
sprinklers and
[1930]
'Electric-cranes and
granite tombstone
an
Just about the biggest name in
*
a
Seattle First National Bank.
:ilb94i
is
market
be launched
to
:B. I.
Lines
Secur.-First Natl. Bk.
sells
com¬
and
business.
V.
[1935]
Second Natl. Bk.
mon
the three year period ended 7-3153 a total of $11.41 a share of
4.0
42%
Transports Freight cars by ships
1*19*13
-:"r
—
of Ages,
tycoon,
com¬
value
'
.
;
~
(G. D.) &
Pharmaceuticals
Seatrain
'
19 ; f1.70
[1935]
Marshall-Wells, whose
hardware
earnings had been retained in the
Kansas
;v,
Seaboard Surety Co
Diversified
book
a
6.5
19y4
0.60
14
Australian
uled
covers
[*1916]
Scruggs-Vandervoort-Barney
pany,
(7-31-53) of $57 a share. Current
operations are reported ahead of
the 1953 rate and a subsidiary for
5.8
38
Williams, Inc
with
37
around
Locks & builders' hardware [1940]
Scott &
wholesale
out to $3.62 per share on the
180,440 common shares outstand¬
ing. Dividends for both 1952 and
1953 were $1.60.
The stock sells
11935 J
Georgia operator
gest
ed
Fire insurance & real estate maps
Savannah Sugar
Rock
in
31, Based on
1953
1953 Div.
"
Francisco Bank
Trap Co., premier
of assorted beasts; and
ensnarers
% Yield
Dec.
•»
'
San
Animal
tors;
Consecutive
;
Year in brackets indicates time
f
paradise; Brinks, the money
movers; Bostich for staple inves¬
ii
IN AMERICA
V.,
man's
5
page
47
Bell Teletype AQ 98
Telephone 3-3711
\
'
Aztec Oil &
/
Canadian Delhi
Gas
Company
million
u
'/•.
.
*
Central Louisiana Electric Co.
dends
-
the
contained .divi¬
$3
totaling
of the net
Service Co.
$500,000
Southwestern Public Service Co.
per
-share,
earnings of $9.69.
was
a
Over
fwo
of
$3?50 preferred" and only 78,750
solid
Trading Markets
of
common.
.pany
sive
These
DEALERS
•
TEXAS
quite
equities were held by 3,074
stockholders
DISTRIBUTORS
has
classes of stock—79,404 shares
shares
•
-
United States Envelope Co.
Three States Natural Gas Company
UNDERWRITERS
retained in the busi¬
in 1953.
ness
Taylor Oil & Gas Company
Active
stockholders received
year
quite modest declaration in light
Southern Union Gas Company
Southwestern Electric
common
during
Johnston Oil & Gas Company
\
Joseph McManus A Co., Private Wire
net
and
the preceding year. The envelopes
the
.Delhi Oil Corporation
-
high),
new
profit of $1,040,924, up 19.2% over
Petroleum, Ltd.
<
'T*;
(a
•
Municipal Bonds
•
Corporate Securities
£12-31-53). The com-
has excellent and progres¬
management; expanding
earnings and dome leverage in its
Rauscher, Pierce
Mercantile Bank
^
*
.
a
Co.
Building
quotations
Envelope
In
Telephone:
Riverside
9033
HOUSTON
HARLINGEN
WACO
Direct
Wires
Bell Teletype: DL 186 and DL 197
SAN ANTONIO
to
New York, St. Louis and
of
and
around
common
current
at
$70.
delivers
U.
Members Midwest Stock
Exchange
S.
an
this,
TELEPHONE CA4944
in¬
we
teresting value.
DALLAS 1, TEXAS
-
shares;
common
AUSTIN
LUBBOCK
other Principal Markets
so
brief
could not
the
TELETYPE H0495
review
as
possibly begin to cover
myriad of attractive equities
lurking in over-the-counter trad¬
ing lists.
If, however, your appe¬
tite has been whetted, you
want to look up
might
perhaps the big¬
CITY NATIONAL BANK BUILDING
HOUSTON
2, TEXAS
48
The Commercial and Financial Chronicle...
i
(1576)
Continued
from
Thursday, April 8,1954
47
page
THE BIGGEST STOCK MARKET
IN AMERICA
We maintain markets and trading
No. Yrs.
from
which
dividends
positions in the following
consecutive
have
been
Cash Divs.
Consecutive
Paid in
Dividends
1953
Paid
Year in brackets indicates time
Incl. Extras
cash
paid.
Quota¬
Approx.
% Yield
tion
Dec.
Based
31,
on
1953
1953 Div.
18y8
5.5
$
Sonoco Products Co
Paper &
Pacific Northwest securities:
29
specialties
paper
1.00
[1925]
'
V-
South Carolina National Bk.
(Charleston)
18
1.50
$54
2.8
13
1.80
29
6.2
21
0.65
10%
;
10
0.70
12%
/ 5.4
1.80
331/2;
[1936]
CASCADES PLYWOOD
UNITED STATES NATIONAL BANK
1
S'thern Advance Bag & Paper
Pulp
FIRST NATIONAL BANK
PORTLAND GAS & COKE
PORTLAND
of
and
PACIFIC POWER & LIGHT
[1941J
Water Co
Southern
Colorado Power.
Electricity supplier
[1944J
So. New England Tel. Co.__.
'■
'
.
on
'
•
.
•
Connecticut
the above companies and other
-I';-
:
'
•
V. '
v
Natural
ico and
us
utility
oper.
63
supplier,
[1943]
gas
11
New
?
,
'i
,
3.4
* 0 '•
-
•
19
1.00
14
f0.90
44
1.90
82
2.3
12
1.23
25
4.9
20
1.00
13
7.7
12
1.60
55
2.9
87
2.00
501/4
4.0*
101
1.80
29%
6.1
19
yl.23
20%
5.9
13
1.60
51%
3.1
32
1.00
14%
7.0
49
4.00
70
5.7
77
other
and
23%
1
3.00
441/2
6.7
29
1.20
28
4.3
38
J.00
13 1
7.7
14
1.00
171/4
5.8
18
1.00
is y4
5.5
15
0.45
4%
9.2
10
fl.52
100
1.0
-
[1935]
Southwestern Investment Co.
Auto
0.80
./
Non-participating life
Municipal bond department managed by Clifford L.Wolf
5.4 /
Mex¬
Texas
Southland Life Insurance Co.
today !
:
[1891]
Southern Union Gas Co
leading Pacific Northwest companies supplied gladly
Write
v
electric and ice interests,
operating company [*1933]
LONGVIEW FIBRE
Current information
6.1
Water,
JANTZEN KNITTING MILLS
PORTLAND GENERAL ELECTRIC
products
paper
So. California
financing
§17%
[1940]
Southwestern Life Insur. Co.
5.1;;
Non-participating life [1910]
Southwn. Pub. Serv.
Operating
(N. M.)
public utility
[1942]
in
Texas
and Oklahoma
Speer Carbon
eJ^nved/mrn/ &ccmfd/tc&
Carbon
&
Co
graphite prods.
[19341
Sprague Electric Co
MUTUAL FUND SHARES •CORPORATE STOCKS & BONOS
Makes electric condensers
MUNICIPAL BONDS
[*1942]
Springfield F. & M. Ins. Co.
since 1927
Diversified
U.S. BANK BUILDING-PORTLAND 4, OREGON
insurance
[1867]
Springfield Gas Light Co
AT 1318
Mass.
operating utility
(A.
Staley
[1853]
Co
Processes
E.)
Mfg.
& soy
corn
beans [1935]
Standard Accident Insur. Co.
Diversified
insurance
[1941]
Standard-Coosa Thatcher Co.
Yarns
and
threads
[1922]
Standard Screw Co.
Screws
ucts
and
machine
«crew
prod¬
[1905]
Stanley Works
Hardwore
etc.
for
building trades,
[1877]
State Bank
of
Albany
[*1925]
Steel Products Engineering..
Industrial tools and equip.
Stonega Coke & Coal Co
FACTS
Coal
AT A
timber
and
Stouffer Corp.
Restaurant
GLANCE
Strauss
$22,983,815
1952
STRUTHERS WELLS CORPORATION
21,711,752
(Nathan)-Duparquet
report shows continduring the fiscal year
November,30, 1953.
The
sales for
as
per
above, were equivalent to $15.08
Common share. If the Excess Prof-
its Tax had
not
decreased
1952
ker 30, 1953 is
1953
fiscal year
$22,983,815, an increase
5.6% over the previProfit before taxes on income
to
of $1,272,063 or
ous
year.
slightly from $4,130,300 in
$4,029,806 in 1953. Tax advantages obtained primarily through a
higher Excess Profits Tax credit and
to
increase in capital gains have
creased the necessary provision
taxes
tax
on
income.
provision
duction
t
cost
has
in
This reduction in
more
income
than offset the
before
i.
re-
an(j administrative
taxes.
Net profit for the year was
$1,270,806 as compared to $1,205,300
1°A
$65,506
current
penses—net)
pre^ ,ng>;ear' an i"creIase ,of
or 5.4%. The net
r
the close of the fiscal year after dividends of $1.25 per share on the Pre-
1953
j
c.
.
^axes
Net Profit
••
1953
6,771,907
$4.47
4.40
18,954,009
Dividends per
In-
1953
(Cash)
....$1.60
1953
(Stock)
....
.
2,759.000
$ 1.270.806
1952
(Cash)
rt
f
I
-
(Stock)
....
—'
John T. Dillon, President
,
15
of
figure arrived
that
at
way
The $1.23 shown
year.
after
adjustments
forvthe
stock
represents
been made in
have
the
the
dividend.
WE MAINTAIN
ACTIVE TRADING MARKETS
PACIFIC NORTHWEST SECURITIES
UNDERWRITERS—DISTRIBUTORS—DEALERS
5%
Book Value of
Respectfully submitted,
.
quotation.
Dec. 31 figure not available,
Company paid $1.25 in dividends per share of common stock
during 1953 and in addition paid a 2% stock dividend on
....$1.45
1952
Zilka, Smither & Co., Inc.
INVESTMENT
Common Stock
29.21
;
not available,
any,
5%
....$30.79
'I
if
Share
1952
/
record,
t
.
earn-
Previous
of Common Stock
resulting from the 5% stock
$4.68. The
2.1
Share
shares
to
3.50
t Adjusted for stock dividends and
splits.
t Earlier quotation. Dec. 31 figure not available.
......$7,019,168
1953
'
163
page.
17
499,608
ferred Stock. The profit per share be¬
fore giving effect to the additional
dividend amounted
this
on
large annuity business
Net Working Capital
1952
$ 4,029,806
1
,
advertisement
$502,947
1952
1953
^era^ an(* State Income
equivalent to $4.47
per share on the 259,913 shares of
Common Capital Stock outstanding at
was
6.3
[1944]
Earnings Retained
Income per
ex-
come
profit for the
year
on
company's
24
drilling
wells
of Common Stock
....
profit before Taxes
oil
conventional
•
costs
ancj other business
*
705,692*
$22,983,815
-
See
December
1952
0f
Producing the
Goods Shipped (Materiai purchased, labor,
power, light, heat, sales
•
for
Sun Life Assurance Co
y
1952
follows:
as
Shipments
defor '
an
equip. [1939]
§ Later
Dividends Paid
1953 ........$767,859*
been in effect during
19^3 the earnings per share would
liave keen increased by $2.15 per share,
A condensed summary of the princiPa^ items in the Profit and Loss Statenient for the fiscal year ended Novem-
amounted
our
1,205,300
ings before provision for taxes on income, calculated in the same manner
progress
ended
$1,270,806
1952
tied
kitchen
[1937]
1953
for the Fiscal Year ended November 30,1953
equipment
Also
Net Profit
Corporation. This
__
[1936]
Refining equipment;
1953
Summarized herewith is the Twentysixth Annual Report of Struthers Wells
_
STRUTHERS WELLS CORP.
Net Sales
THE
[1940]
chain
Commercial
OF
[1916]
*
including 5% Stock Dividend
TELEPHONE
AT
826i
SALEM
•
SECURITIES
813 S. W. ALDER
PORTLAND 5, OREGON
EUGENE
•
MEDFORD
•
TELETYPE
PD
155
VANCOUVER, WN.
Volume 179
Number 5314
The Commercial and Financial Chronicle
...
Continued
THE BIGGEST STOCK MARKET
No. Yrs.
Year in brackets indicates time
from
which
consecutive
dividends
have
been
Cash Oivs.
Consecutive
cash
% Yield
tion
1953
Paid
Incl. Extras
Dec.
31,
Overwhelm
S
Swan Rubber Co
Hosing and tires
12
Local
bus
0.60
11 lA
12
1.50
16%
9.0
flation,
is
1900 RUSS BLDG.
restrained
have the gold
deemable
CO.
UNDERWRITERS & DISTRIBUTORS
Us
SAN FRANCISCO
•
Telephone EXbrook 2-7900
[1942]
operator
&
Incorporated
5.3
[*1942]
Syracuse Transit Corp__
McANDREW
Based on
1953 Din.
1953
49-
14
page
Currency May
Approx.
Quota-
Paid in
Dividends
paid.
from
Evils of Irredeemable
IN AMERICA
"
(1577)
when
standard and
Bell
4, CAL.
Teletype SF 370
we
re¬
a
TRADING MARKETS
currency.
in
Tampax, Inc.
Misc.
cotton
Tappan Stove Co.
Gas
19
_
people renders Senators and Con¬
ties
and
27
poles
mands
6.2
13
1.50
50
3.0
14
2,00
77
2.6
flation of money and credit.
[1941]
Products
Refrigeration
Corp
,
Terry Steam Turbine Co
Turbines
and
reduction
[•1908]
V •
Thrifty Drug
Calif,
46
suits,
coats,
etc.
Packer
Gasoline
We
pumps
wish
to
21
ex¬
power
the
Trust
SECURITIES
prosperity and progress under the
gold standard during so many
years.
It is true that the same
UNDERWRITERS and DISTRIBUTORS
to
modern
condi¬
2.50
36%
6.3
1.00
12%
7.9
during
OVER
the
and
form
after
of
Rolling
0.65
11 %
5.7
22
Pump
1.20
16%
7.3
[1932]
Mfg.
mill
20
...
Co
3.00
/
19
equipment
83
3.6
1.25
24
r
5.2
[ 1935]
greenbacks
Civil War
the
in
freely available for
1879.
There
charts
followed
the
as
the
record, if any, not available.
% Earlier quotation. Dec. 31 figure not available.
Continued
SAN
ple with
on
page
50
—
Telephone
DEALERS
the
enactment
add
can
that
Bell
61
2-8515
&
SF
62
this
in
much
economically and
trouble,
cally if
politi¬
don't.
we
and
have
kind
of
Americans de¬
the
earned
assurance
and
We
best
Americans
money.
which the
be
can
to
capital stock of the
confidence
gold coin standard
en¬
Mliffi/est Jtank in
to encourage the
integrity
strength of those who can and
and
will
Dempsey-Tegeler & Co., Los Angeles
undertake
investments
accept
responsibility
have
with connections to other trading centers
measure
men
a
which
to
the World—
and
when
we
honest
BANK OF AMERICA
repair.
can
actively trade in the
need
need
That is provided in this bill.
Teletype—SE 234
With Peninsular Inv.
First-California Company
[Special to The Financial Chronicle)
ST.
founded 1892
Gffi.R Harper &Son & Co..
Investment Securities
PETERSBURG,
L.
son
Samson
and
Incorporated
Fla.—Nel¬
Rowena
M.
Drive, North. Both
L.
were
Edenfield
v
300
formerly
&
Co.
Montgomery Street
26
Seattle 1 Mask
Wenatchee
LOS ANGELES
SAN FRANCISCO
Samson have joined the staff of
Peninsular Investments, 134 Beach
with Frank
Tacoma
EXbrook
cur¬
of
genders among people who would
provide centers of initiative. We
150* Third Ave*
—
Teletypes —SF
considered opin¬
my
we
the
SECURITIES
Private wire
-
(4)
bill.
serve
MUNICIPAL & CORPORATE
gold redeemable
a
by
rency
I
DISTRIBUTORS
STREET
FRANCISCO
Resumption
Other witnesses have described
the
reasons
why we can
and
ion
—
MONTGOMERY
155
ac¬
economists'
on
Gold
J. S. STRAUSS & CO.
currency
should promptly provide the peo¬
'Previous
UNDERWRITERS
COUNTER
was
Prosperity.
Torrington
THE
t
followed by the long depres¬
sion of 1873 to 1879. Then we had
the resumption which made gold
.
threat in
,[1941]
Co
IN
DEALERS
stopped
tions and start the clock again. It
had
ticked
off
years
of peace,
[1934]
(
the
of
move
tive period known
Toledo
York
Angeles
purse,
forward
coins
&
Inc.—Los
CO.,
clock
11
Tank
to:
Inc.—New
6.2
11943]
Oil
&
Wires
Co.,
4.8
8Vs
[1930J
Packing Co
Tokheim
•
[*1944]
Timely Clothes, Inc
Meat
of
13
publisher
Akin-Lambert
&
That
24
Well-known
Tobin
1.00
Saxton
by Congress¬
me
loss
the
is
matter
a
A.
currency.
'■
■
0.50
10
•■■
.
[1937]
Time, Inc.
Men's
8.4
$95
;
17
silverware
and
8.00
.
Tiffany & Co
Jewelry
Direct Private
G.
making Congress a
rubber-stamp under irredeemable
gears
Stores
the
of
-
drug store chain
It
men.
'
r
;
is
perience told to
etc.
compressors,
[3.940]
to resist de¬
various
pressure
for further deficit spend¬
ing to be easily made up by in¬
helplessness
Tecumseh
SECURITIES
helpless
from
groups
[1927]
Taylor-Wharton Iron & Steel
castings
32%
2.00
OVER-THE-COUNTER
The power thus taken from the
$19%
1.75
gressmen
Taylor-Colquitt Co..
Steel
9.0
-rJ "
[*1935]
ranges
Railroad
3.5
23
0.80
11
[1943]
products
The Incentive to Inflation
647 South Spring Street
Offices Serving California and Nevada
Joins Barclay Inv. Co.
Yakima
(Special
to The
Financial
CHICAGO, 111.
Bertoncini is
now
Chronicle)
—
Andrew G.
associated with
Barclay Investment Co., 39 South
La
Salle
for
Street.
many
He
years
trading markets
formerly
was
with
Paul
H.
underwriters
Davis & Co.
Retail Distributor
Joins
distributors
Clayton Securities
(Special to The Financial Chronicle)
INSURANCE STOCKS
BANK STOCKS
.
PORTLAND,
Collins
—
associated
Me.
with
PACIFIC COAST SECURITIES
brokers
Albert B.
become 1
has
Clayton
Clapp
Building. Mr. Collins was
formerly
&
with
Securities
J.
Arthur
Inc.,
ltltrsil. SLOCUM B & CO. INC.
Warner
Co.
1 MONTGOMERY
With Eisele & King
(Special
WALTER C. GOREY CO.
ST.
The
to
Rus*
Building,
*
Teletype SF 573
San
Francisco
James
B.
associated
—
1
1
Colville,
Williams
with
Stout
&
have
Jr.
Stock
and
become
Eisele
&
Co.,
7217
Exchange
King,
Gulf
"
Boulevard.
ImniKniiiiM
H.
Mr. Williams
for¬
was
merly with H. Hentz & Co.-
»
bell
system teletype
sf7q
wire systems
San Francisco
Libaire,
'
"/
4
member
Chronicle)
PETERSBURG BEACH,
Fla.—Donal
YUkon 6-2332
Financial
STREET*,SAN FRANCISCO
*
»
*
goldman, sachs &
CO.
dempsey-tegeler & CO.
50
The Commercial and Financial
(1578)
Continued
from
gold
14
page
Oui Currency System Destroys a
issue
of
denial
the
as
ownership
Some of those who oppose
free
market
such
that transac¬
tions in gold would be "trifling"
fluctuations
and
largely
influ¬
a
enced
say
by speculators. Perhaps the
committee is
London
that last week
aware
established
partially
a
trading capacity."
The
path is clear.
market
and
demption
coin
the
tools
belong
in
acted
be
this free market
trans¬
let
me
read from the "Wall Street Jour¬
nal" of March 23:
"One
hour
opened
clear
to
Monday.
on
the
the
after
become
the
was
factor
in
Certainly this would not be a
"trifling" volume, particularly in
view of the fact that the London
market
is still restricted.
Other
opponents
market
fuse
of
the
say
create
would
public and
confidence
in
free
a
chaos,
cause
the
a
dollar.
returned
At
choas.
create
market
Be-
to
pound
the
the
over-valued
was
of gold.
time
that
that
showed
in terms
The British chose to ig¬
nore
this
gold
at
warning, going back on
an
over-valued figure
which eventually
caused a de¬
cline in exports.
But there was
no
"chaos"
eration
of
as
result of the op¬
free gold market.
a
the
it
in
the
place
the
man
where
in his hands.
citizen
have
the
his
of
value
life
insurance,
to
gold
standard
stronger
a
America
America
a
that
—
respectfully urge its prompt and
favorable consideration by your
committee.
Chairman, I should like to
legislation. I feel one of the out¬
standing
inconsistencies
of our
present monetary system lies in
fact
that
we
the
same
still
recognize
the monetary status of the silver
dollar
our
to
forefathers
in
we
extent
as
be
chaos?
Here
is
what
the
"Journal of Commerce" of March
23 states:
"Britain's
of
restoration
gold
trading in London yesterday,
plus the relaxation of restrictions
~
on
dealings
blocked
a
certain
sterling,
forms
of
price
of
1873 far below the
established
likely
strengthen
sterling
bring to
London
an
to
been
assured
flow
of
gold
I
arbitrarily
perchance
the
set
is
price
return
right, sir.
was
an
ounce,
would
$35
an
be the market price at the present
time,
but
think
I
national market it has been
what
162
monetary price
years
In 1873 the
and
ago
resulted
the
never
some¬
Bricker—The price on
market is approxi¬
That
is
limited
a
That excludes people with¬
the
Empire
the
and
sterling
bloc.
Young—I
dangerous
to
had
an
ascertained
ditions
in
feel
it
return
ability at $35
to
ounce
$40
or
is
the
metal
in
coinage
Reserve notes and
silver
redeemable
dollar.
only
the
redeem¬
until
the
are
United
847
2.0
Trico Products
26
2.50
39
6.4
$24.00 $620
3.9
(Special
LOS
W.
&
to
The
Trust Co. of
Co.
is
Inc.,
market
con¬
Electric
and
display
ment
South
Business
$6%
7.2
13
2.50
7.8
$32
[1941]
7.6
19%
1.50
18
—--
[*1936]
stationery
5.4
11
2.05
38
(L. A.)
29
7.00
$136
Bk.(Memphis)
27
1.70
38%
4.4
1.40
391/2
3.5
1.30
31 y2
4.1
17
$0.65
127/s
5.0
13
1.00
13%
7.3
54
2.50
44%
5.6
15'
1.50
16%
9.2
14
3.00
72
4.2
Union Bk. of Comm. (Cleve.)
[1943]
Union Bank
& Trust
5.1
r
Calif. —John
Maloney
South Spring
Financial
Union Trust
Merritt
&
Co.,
■■
!
■'!
Machine
V
wire,
&
•;
and
/.
i,
,/v
Co
Rope
United Drill
1
15
(Baltimore)
.,./V
[1939]
Chronicle)
pro¬
gas
[*1935]
carbon
[1937]
King Merritt
natural
and
oil
duction
—
wire
rope
Tool, Class B
tools, misc. equip. [1941]
United Illuminating
Co
[1900]
utility
oper.
Inc.,
United Printers &
Broadway.
Co.
[1940]
products
Paper
Publ., Inc.
[1939]
U. S. Envelope
(Special to The Financial Chronicle)
ANGELES, Calif.—Edwin
Durant
with
45
19
With Standard In v. Co.
LOS
3.00
0.45
Co.——_
specialties
Connecticut
1151
20
equip¬
storage
Uarco, Inc.
Crude
ANGELES, Calif.—Grover
King
J
Corp
and
Tyre Rubber
Chronicle)
C. Fillbach has become connected
with
4.5
6.7
[1937]
High
LOS
18%
0.83
43
17
Twin Disc Clutch Co
Clutches and gears [1934]
Tyler Fixture
;
[1911]
utility
gas
[1927]
with
now
The
•
Tucson Gas. Elec. Lt. & Pwr.
Union Wire
to
;
to Staff
Financial
650
Joins
24
Georgia
:
Rubber
Street.
(Special
/
[*1925]
ANGELES,
Larson
[1928]
accessories
Auto
this
Maloney Adds
has
Standard
210
become
conected
Investment
West
Co.
of
Table II. 5-10 Year Dividend Payers on page 51.
Seventh
Street.
U. S. Fidelity &
Joins Hamilton
now
States.
Congress
should,
by
statute,
a
gold and silver stand¬
ard
by again typing silver to
restore
17.00
we
Federal
Treasury notes
certificates
in
precious
which
90
Union Planters
California,
Silver
Travelers Ins. Co. (Hartford)
Life, accident, health [1864]
thereabouts.
status
money
8.6
might be
country. It is my
understanding that in New York
over the past few years the mar¬
ket price has varied from $37 to
W.
silver
17y2
products r 1906]
Steel
Mr.
silver, but did not alter the
monetary price or the legal tender
the
1.50
Co.
Townsend
Wire
[1917]
tableware
silver
[1930]
$35.
trade.
the
of
of
/ 48
Co
Mfg.
Greeting cards
in
free
7.5
English
mately
Congress passed leg¬
which
30
higher.
Senator
the
$
2.25
inter¬
the
on
Approx.
tion
% Yield
Dec. 31, Based on
1953
1953 Div.
37
Towle
rather
ounce
at
$35
paid.
dividends have been
price, and
Sterling
Young—That
believe if
1792 when the
monetary value has
changed.
islation
and
seemed
world currency and
yesterday
as
in
market of gold
determination
did
permitted
the
market
silver to decline since
abandonment of
the British
free
after
cash
consecutive
which
from
Consecutive
Paid in
Dividends
1953
Paid
Incl. Extras
brackets indicates time
Year in
Quota-
Cash Divs.
No. Yrs.
Mr.
First Coinage Act was passed, and
yet
IN AMERICA
would
redeemability?
I also favor the enactment of this
the
THE BIGGEST STOCK MARKET
a
briefly address myself to S. 2514.
nancial
a
an
world
through the mire of the ideologi¬
cal struggle with Communism.
I
Mr.
to
would
lead the
can
over
You
—
to determine the actual
in
The passage of S. 13 and a later
return
has
Bricker
Thursday, April 8,1954
from page 49
and after
been re¬
years
advocate the free
re¬
more
which
to
they
Let the
pensions and savings.
going back
gold market today if
they thought it would mean a loss
of confidence in sterling and fi¬
Would
■
the
would
Democracy
—
individual
loss
gold
in 1925 they established a free
market for gold.
This did not
free
of
con¬
1
fore the British
of
mean
'
to
sponsibility for protecting his own
property and financial interests—
slated
is
major
world gold trade."
It
.
.
.
market
new
market
Con¬
to
right
regulate the value of
Such action would be in
since
of business
will
restore
Constitutional
interest
street
Continued
...
gold
transactions
period of a few
gold
redemption
gold re¬
and
money.
free gold market for the first time
in 15 years.
As to the volume
which
would
its
gress
to
of
value
determined
market
then
A free gold
return
a
true
Senator
to strengthen British reserves and
world
-
been
stored.
Right to Private Property
of property.
the
free
basis
has
through
production ratio
a
on
after
first
Chronicle
(Special
to
The
Financial
Hoffmeister is
with
Hamilton
—
now
Charles
15
67%
$1.95
2.9
[1939]
,
44
U. S. Fire Insurance Co
Chronicle)
Diversified
DENVER, Colo.
Guaranty Co.
Diversified insurance
Managem't
1.50
38%
3.9
46
0.75
6%
11.5
1*1910]
insurance
W.
affiliated
U.S.Lumber
Co.
land
Holding Co.,
Management Cor¬
[*1908]
terests
poration, 445 Grant Street.
—
mineral in¬
&
.
Bank
States National
United
46
4.1
2.40
73Ya
3.3
18
1.80
29
18
3.50
125
19
1.20
30
of Denver
$1,875
29
11924]
U.
S.
(Portland)
Bank
Natl.
[♦1925]
J 7-
U. S. Potash Co.
Potash
[1936]
Tests
textiles,
U.S.Truck
Radio
Corporation
Lines
Co.___
oils
soaps,
Matches
and
Lens
Ophthalmic
Makes
1.00
177/s
5.6
16
1.20
16y4
7.4
26
0.45
9%
4.6
1.30
15%
8.3
[1938]
candy
Co._
lenses
[1928]
wall
board
[1941]
Upson-Walton Co.
Wire
Utah
rope
Oil
Crude
oil
—
[1936]
Ingot
refining
and
0.60
•
8
7.5
/
,39
1.00
23y2
4.3
18
3.00
30Y>
9.8
19
0.80
18
4.4
20
2.00
31 y4
6.4
15
Refining Co
moulds
18
:.
$0.17
47/a
3.5
20%
4.9
[*1915]
Valley Mould & Iron Corp.-_
i
Equipment, since 1928
5.5
[1939]
Upson Co.
r
291
...
16.00
15
Utilities, Inc._
Univis
t
8.4
,
100
(N. Y.)
Universal Match Co.
Dependable Airborne Electronic
14y4
[1935]
[1854]
NEW JERSEY'
of
2.8
13
U. S. Trust Co.
Holding company
Designers and Manufacturers
6.2
[1936]
(Del.)
Inter-city motor carrier
United
BOONTON,
^
and
\
States Testing
United
.'nrf/-
—
chemicals
in
used
fertilizers
stools
[1936]
Valley Natl. Bk. (Phoenix)—
[1935]
Veedor-Root, Inc.
Makes
counting
devices
[1934]
Victor Products Corp
Commercial
refrigeration
*
Previous
t Adjusted
1
20
Viking Pump Co
Rotary pumps
[1939]
1.00
[1934]
record,
if
any,
not available,
for stock dividends and splits.
t Earlier quotation. Dec. 31 figure not available.
.
Number 5314.., The Commercial and Financial Chronicle
Volume 179
No. Yrs.
THE BIGGEST STOCK MARKET
from
which
consecutive
Cash Divs.
Consecutive
Paid in
Dividends
1953
Paid
Incl. Extras
cash
dividends have been paid.
Quotation
Dec.
31,
1953
soft
Owns
and
coal
Leading producer:
west
on
land
in
4.00
38
Paid
Incl. Extras
paid.
21
Pacific North-
Quota¬
tion
Dec.
1953
2.50
'
■
31,
Approx.
TABLE n
on
1953 Div.
70
OVER-THE-COUNTER
3.6
'
Consecutive Cash
Paper Co
20
9.1
machinery
23%
6.6
14
2.00
20%
9.8
1.00
13
7.7
69
4.00
180
2.2
[1934]
Whitin Machine Works—
Textile
1.55
17
Paper products & cordage
Virginia
DIVIDEND PAYERS
[*1940]
for
Wachovia Bank & Trust
(Winston-Salem)
18
.
f0.80
30%
Whiting Corp.
2.6
Cranes, hoists, foundry equipment
[1936]
5
[1937]
Wacker-Wells Building Corp.
(Chicago)
Office
building
and
69
7.2
u
Whitney Natl. Bk.(New Orl.)
20
f2.94
55%
5.3
Wichita Union Stockyards
Kansas operator
'
^
[1934]
brakes
46
4.00
$75
1.00
$15%<
0.60
complete
[1908]
records
"Chronicle,"
Warren Bros. Co.
Paving contractor
Warren
(S. D.)
11
.v
22 y8
5.9
Will & Baumer Candle Co.—
18
[1943]
1.30
1.00
17 y4
5.8
Williams
Candles
,
Co
Printing papers & allied products
[1936]
-
Washington Oil Co.
oil
Crude
&
gas
producer
Makes
metal
working
Co.—
&
lotions
2.00
30
6.7
soap
Wilmington (Del.)
18
1.50
34
4.4
machinery
Machines
for
handling
13
Co
I.IO
10%
products
West Mich. .Steel
Steel
castings,
industrial
Natural
Gas
gas
ing
46
7.00
165
1.50
30
5.0
37
2.25
33%
&
operating
Co.—
13
-
utility
Western
Subs,
steam
8.0
12
6.7
Speed
hold-
2.10
44
4.8
/
66
21%
7.4
[1871]
aviation,
1.00
83
26
9%
7.1
for
15
engines
1.50
26%
3.60
100
3.6
Cos.-
electricity and
27
2.00
33%
5.9
not
22
for stock dividends and splits.
Our direct
31,
1953
Based
2.00
27%
Plastic
4.00
52
0.15
2y4
6.7
0.775
9y8
8.5
Licorice
sup-
Co.—
paste for tobacco
California gold dredger
mines
in
111.
&
Fire
Fireproof
materials
6.3
9
CORP.-
0.75
7U
9.7
navigation
[1945]
1.00
mouldings
$39
2.6
1.20
23
5.2
[1949]
0.80
electronic
parts
Sewer
13%
7.3
13%
7.2
1.00
131/4
7.5
[1948]
for
aircraft
industries
bricks,
and
[1945]
Vitrifed
pipe,
8.4
1.00
—
9%
1.00
(Del.)
[1947]
extinguishers
American
[1912]
Products
tile
[1947]
t Earlier
15
quotation. Dec. 31 figure not available,
Company paid 25c in dividends per share of common stock
during 1953 and in addition paid a 2Va% stock dividend on
December
[1939]
figure
10
bldg.
9%
American Phenolic Corp.
[1909]
Ky.
0.60
American-La France-Foamite
7.7
plumbers,
[1935]
(J. S.)
5.6
[1948]
RADIO
and
4%
7.3
t
42
stampings,
z0.24
0.075
3%
of
30
2.2
that
way
The 24c shown represents the
adjustments have been made in the
year.
arrived at after
conventional
for the stock dividend.
Continued
[1944]
private wire system is
on
page
your...
Two Direct Private Wires
connecting
with
ready
for
our
our
New York office
Western offices
access to
provide
the primary markets
regional issues in Utah-ColoradoWashington-ldaho-California
YOUR
LOCAL
INQUIRIES
OVER-THE-COUNTER
ARE
INVITED
ISSUES
English Oil
•
Oil Inc.
•
Reeves McDonold
Big Horn-Powder River
•
Vulcan Silver tead
Lisbon Uranium
•
Three States Nat. Gas
•
U. S. Uranium
Aladdin Uranium
(♦Dividend record—6
years
Pend O'Reille
plus.)
J. A. HOGLE & CO.
Established 1915
5 0
BROADWAY,
Members:
New
York
NEW
Stock
YORK,
Exchange,
N.Y.
American
I
Stock
Exchange,
Salt
Lake
Stock
Exchange,
Los
Angeles Stock Exchange, Spokane Stock Exchange,
,and other
principal exchanges.
offices in
Salt Lake City
•
Denver
•
San Diego
•
Beverly Hills • Butte •
on
1953 Div.
6
condensers
American Insulator
Zonolite Co.
t Earlier quotation. Dec. 31 figure not available.
Approx.
% Yield
tion
[1945]
—
■
Zeigler Coal & Coke Co.—..
available,
Quota¬
Dec.
[1947]
8.3
,
Incl. Extras
—
Operating public utility
z
'
Paid
paid.
American Hospital Supply
Large variety of hospital supplies
and
[1939]
18
plies
the
I • See page 50 for advertisement of this corporation.
5.7
1.50
Young
1953
Allied Gas Co
Corrugating Co
and
[1927]
t Adjusted
0.70
19
3.8
been
Paid in
Dividends
*
Precision
20
auto
if any,
Aerovox
„
Co
Massachusetts
record,
York
Metal
[1934]
Previous
24
[1930]
[*1932]
:
of
services.
Cash Divs.
Consecutive
cash
production
gas
AIRCRAFT
pro¬
Woodward & Lothrop_
Owns
♦
gas
Washington, D. C. dept. store
1.60
have
Communication
controls
propellers
[1941]
31
and
Assurance
heat
natural
Yuba Consol. Gold Fields—_ '45
insurance
supplies
&
Detroit broadcaster
[*1923]
marine,
casualty
0.80
and
equipment
[1888]
Diversified
Fire,
12%
files
the
statistical
6.7
Oil
[1917]
Woodward Governor Co.
Westchester Fire Ins. (N. Y.)
Western
1.00
Company
oil
duction
6.9
listing
each
$
Trust
—
and
West Point Mfg. Co.—
<
18
14%
consecutive
dividends
4.2
29
Bank
WJR The Goodwill Station..
railroad
in West. Ohio
company
Textiles
1.00
[1940]
Foundry—
West Penn Power Co
Both
14
[1936]
use
West Ohio
for
—
which
from
Electrical
Wiser Oil
Crude
Sanitation
in
prominent
Year in brackets indicates time
10.5
[1941]
West Disinfecting Co
available
are
the
or
Aberdeen Petroleum
Natl.
(Dayton)
materials
*
of
No. Yrs.
7.1
[•1925]
Wellman Engineering
name
.
Winters'
[♦1936]
8%
[1885]
Trust Co.
11908]
[1925]
under
[1939]
(J. B.)
Shaving
29
Waterbury-Farrell Foundry-
and paraffin
10 YEARS
6.5
69
brackets
year
indicates the date from which the company or institu¬
tion has paid consecutive cash dividends insofar as
5.3
15
to
In
\
The
[1885]
[1934]
Wagner Electric Corp
Motors
5.00
20
51
% Yield
Based
[*1933]
Whitaker
44
1953
1953 Div.
[*1916]
Kentucky
Paid in
Dividends
cash
Weyerhaeuser Timber Co
Approx.
% Yield
Based
$
Virginia Coal & Iron Co
consecutive
dividends have been
No. Yrs.
from
which
Cash Divs.
Consecutive
Year in brackets indicates time
IN AMERICA
Year in brackets indicates time
(1579)
Missoula
•
Pocatello •
Reno • Los Angeles • Spokane • Boulder •
Idaho Falls • Ogden • Provo •
Long Beach • Riverside
52
52
The Commercial and Financial Chronicle..
(1580)
Continued
from
Our Results
9
page
Thus far
Common Stocks
Investments
as
Continued from page
51
New York Life
at
we
have purchased about $44 million
of common stocks. Approximately
Thursday, April 8, 1954
.
THE BIGGEST STOCK MARKET
28% of the total is in electric util¬
IN AMERICA
conceivable
any
market
value of
This is
mons.
life
is
recalled
that
is
a
growing
industry,
seldom
are
liquidate
if
and
At
list
New
Life
regularly
level of the market the
number
same
of dollars each
those stocks
the
on
month
purchase
we
each
month.
jiot
;gs
investors
Dollar
averaging
such
Jhave hew funds
a
our
to
invest
so
At New
-*
York
Life,
dividend
on
we
that
that
Even
illustrates,
compounding interest
high rate is more important
long run than capital gains.
JVaturally, the amount of divi¬
a
in the
better than
at
even
Michigan, showed that in the
riod
studies have shown that the
longterm trend of dividends is an
up¬
1937
portfolio
one—rising at the average
about 3% annually since
1889^—particularly if applied to a
of
1950
to
of
92
ing that period.
plished
during
This
these
ended at about the
an
stocks.
illustration
growth
ments
the
in
of
the
stocks
period of
pay¬
Moody's
Public Utility Stock Index
paid
average dividends of $1.54 in 1940
and
in
the
past
year
market value at Jan.
$3,028,000
paid $2.01,
ment of
from
wood
Moon
1975
this
loan
Canadian
than 2.7 mil¬
Cascades
&
is
constantly
that the Paley
&
a
well
might
be
real¬
be
even
$
i.v
happy with it,
—are
Here
•
are
.
few
a
the
since
in
Colorado
and
tail
Water
the
8
Company
water
of
was
Flour
in
of
it
occurs
on
page
send
a
copy
of
our
to
.in'
i
"...
•
t
t
1
i
t
i
66
\
I
So
*
,
tlVO
A
*
<
-m-
«r
V
*
«.
♦
^
*
*
<
»
*•
■»
*
*1 A
m
* jm
m
»
•
!..*
jr.
•
&
*>,« .»
1.25
37%
3.3
9
1.00
12%
8.1
0.30
5%
5.2
1.00
5
0.20
8
5.00
66
7.6
8
0.65
14
4.6
7
0.525
1.10
for
instru¬
[1948]
oflice
B
I
m
m
m
m
j
5.7
3%
•
Quebec theatre chain
[1946]
&
air
conditioning
Delta Air
7.0
203/2
5.4
0.40
$5%
7.6
8
1.00
16%
6.0
8
0.425
2%
17.0
5
Lines, Inc
from
7%
1.15
15%
7.6
[1947]
Chicago to De-
,
[1949]
Detroit
Aluminum
and
Bearings
&
8
Brass
bushings
[*1946]
Dickey (W. S.) £lay Mfg. Co.
Sewer
and
culvert
pipes;
*'
-
tiles
[1946]
District Theatres
Operates
theatre
chain
[1946]
*
July,
and
ale;
Previous
t Adjusted
Midwest
[1949]
record, if any, not available,
for stock dividends and splits.
Dec.
31
figure not
available.
&
We
Water
and
gas
buying
or
Black
Hills
selling the securities of:
Frontier
Big Horn Powder River
in
towns
interested in
are
Bay Petroleum
Power
&
Refining Co.
Golden Cycle Corp.
Ideal Cement Company
Light
Central Bank & Trust Co.
Kinney Coastal Oil Co.
Cheyenne Oil Ventures
Mountain
Fuel
Mountain
States Tel.
Colorado
upon request.
Kutz Canon
Colorado Central Power Co.
Colorado Interstate Gas
Oklahoma Oil
Milling & Elevator Co.
Consolidated
&
Gold
Fisher Stores
Co.
National
Potash
,'
Supply Co.
&
Co.
Co., Inc.
Company of America
Sioux Oil Co.
United
States
National
United
Bank
Tel.
States
Potash
Western
Bank
Company
Empire
Woodward
Oil, Inc.
Amos ۥ Sudler & Co.
l1
*■
5.9
[1946J
Theatres. Ltd., CI.
&
17
buildings in Chicago
Operating public utility
•
WATER
»*-»:»«»"•
*
7.6
8
mixes
Cumberland Gas Corp.
proud, we'll happily*
annual report
J
* '
18%
16%.
Gas
cities and
!
are.
\
1.40
First National Bank Bldg., Denver
GAS
}•'.
5.4
5
prepared
Bay Lumber Co.
COMPANY, INC.
Private
•
t
15%
53%.
increased
Indiana
1
%
0.85
5
Milling & Elevator
Lumber manufacturing
——1—i
t
8.5
[1946]
666
j
23%
•
Tramway Corporation
Equity Oil Co.
U
2.00
Texas
from
Denver-Chicago Trucking
i
7.7
6
Denver
Denver
,(
19%
1*1949]
Denver
£
1.50
[1945]
Consol.
Cresson
S
3.3
[1947]
ore
[1949J
and Newark
Daniels
INDIANA
13
9
(G. C.), Ltd
Owns
55
day
founded in
increased
have
.
we
0.60
7
Consolidated Dearborn
possibilities
population
every
serving 126,600 natural
You bet
1.1
[19451
utility
Top manufacturer of band
have increased 186%
was
have
Indiana.
Proud?
8
7
Co...
Cliffs
and
baking
Beer
1953,
customers
$0.09
1*1947]
Drewry's Limited U. S. A...
customers
close
4.6
vi'.
9
."/jV"
lamps
| Earlier quotation,
•
65%
->
compressors
[H945J
public
Kansas
Colorado
1945.
At
3.00
too.
revenues
Gas customers
6.4
*
Interstate Gas Co..
Pipelines
Assuming this 27%
Indiana and
people—more
company
•
$5%
report will describe to
broader
the facts:
Operating
0.35
7
air
Mining & sale of iron
and obviously
.
4.5
[1947]
Cleveland
statistics
more
*»p!
.
6%
■
ex¬
& Water Co., Inc. sup¬
proud of that punch
great many Indiana
0.30,
8
Plywood Corp
Operating
es¬
dependable part of the muscle.
stout,
7.2
business
trust
Central Telephone Co.
more
In addi¬
troit
a
17%
y
1.
Motor Lamp
head
Serves Dixie
plying
1.25
8
[1946]
and
Refrigerators
We're
7.7
[1946]
Copeland Refrigeration Corp.
you'll find Indiana Gas
$6%
7
Camden Forge
.
the economic vigor of
0.50
>:
[1946]
Montreal
into
3.6
[1947]
Foods.
Condensers
Coos
Look
33
5
Mich.
of
United
increased
Continued
OWING
1.20
men¬
a
«■
'
[1947]
Brunner Manufacturing Co..
Auto
may
it
the
increase
2.7
3%
0.10
U1946J
Conn
$1,288,000.
7.5
[1949]
tanks
potash
Mortgage
largest annual
span
the economy.
was
10.
8
Markets
supermarkets
and
ments
invest¬
ah
the
more
so
Mention of
Portfolio
15, 1950
against
as
age
and
you
0.75
//.
7
valves
Brockville Tr. & Sav. (Ont.)
aver¬
ceeded.
a long
and several in-
swings.
for
ized
long decline,
a
recovery
termediate
in
ple
accom¬
level and
same
our'
1.5
*,
Cheese and dairy pioducts
timate of around 190 million peo¬
averages
yet included
con¬
dividend
stock
Blue
Index,
annual
of
the
has
years
lengthening,
period
when
started and
a
well-diversified and selective list
Steel
change in
tion, it must also be remembered
that
stocks
was
Bear
Produces
than 20 million persons.
pe¬
33
population in the past
our
eight
0.50
7
Black, Sivalls & Bryson
history. Of further in¬
our
.
,
tanks and
Plywood
selected
a
common
of
As
gain in
6.2
[1947]
Heavy forgings
vear.
9%
8
[1946]
Bonneville, Ltd.
Cowles
an
population
terest,
would have performed 27% better
than the Dow Jones averages dur¬
ward
tinual
share.
a
forecasts
1949, a factor that I
previously.
last
$0.60
payments
any
the
States increased
lion
-
fabrics
rayon
Gossett
Detroit
that it all
me
&
Big
how
of
1889 to
slightly
and
Pumps,
rise in dividends of 3% from
age
This, in spite of the fact that the
Dow
Jones
Averages
dropped
from 343 on Oct. 1, 1929 to 103 in
July, 1933—a decline of 70%. The
other study, by the University of
paid is bound to fluctuate,
.somewhat from year to year, but
common
$103
be
indicated
The
was
Bell
the
to
now
dividend
of
8
our
larger and more
which
should
a
will
trend
tioned
($148.70), and yet, he
dends
rate
the
all the different prices
the
investor
had
paid
which
pros-
there
than 30% below the
more
in
corporations.
our
4.6
proces¬
Manufacturing Co._
Warehousing
growth
these
mark
higher
which
amazing, the market
more
still
was
Bates
Certainly there seems to be
nothing in the wood to indicate
average of
-pects of a company rather than
on
capital gains.
As the above
at
by
in
103
to
on
$43 y2
Colorado producer of crude petro¬
leum and its pioducts [1947]
economy,
mean
bought
from
seems to
to
up
the
occur
Regardless
the
of
be, it
active
Industrials
Dow-Jones
the
wide
July, 1933. At
that point
the market had re¬
covered not quite 20% of its total
decline after his first purchase,
concen¬
paying
on
to
economy
adds
started
2.00
Future
likely
1975.
clined
and advantageous procedure.
trate
broad
refer
Oct. 1, 1929, at
who
is
on
1953 Div.
9
Bay Petroleum Corp
you
forecast
to
which
schedule every
three
months
thereafter, would
actually have had a slight profit
even
though the Index had de¬
is
averaging program is,
opinion, the most practical
the
1953
Under
are all familiar
Paley Report which at¬
sure
tempts
averaging I
Averaging
343 in
always
we
with
may
dollar
in
a
ours
am
Bas«d
31,
[1946]
Bay way Terminal
I
Dollar
and who
everyone.
in
as
dollar
in
investor
Cost
But,
dynamic in¬
know,
you
can
receive
to
the hopes of capi¬
% Yield
tion
.7
Textile manufacturer and
Cotton
The
year
an
pur¬
for
possible
dustry
who
5.8%.
paid.
Bancroft (Jos.) & Sons Co._>
on
two studies. Briefly, Lucile Tomlinson's study shows that
Mathe¬
by
of
been
Appro*.
Quota¬
Dec.
[1945]
Federal Income Tax laws this
our
to
you
equal number of shares
an
return
have
Anglo-Calif. Natl. Bk. (S.F.)
handsome
a
consecutive
$
sor
appreciation.
ested
matically, such a program must
yield a higher return than that
chase
afforded
dividend
For those who are further inter¬
larger num¬
prices are low
obtained
it
income
expect
tal
in
a
than when they are high.
the
of
basis
on
list
that provide a desirable yield dif¬
This
means
in
effect
ber of shares when
vestments
mini¬
stocks should be done
rather than
ferential.
that
Incl. Extras
benefit tax wise, and adjusting for
this, the return is better than 6%.
reasonably
total
approved
Paid
which
dividends
type of income provides a further
the
invest¬
of the
regardless
predicted
be
common
dollar
a
$16.00.
conditions,
1953
Consequently,, a
life
insurance
company's program of buying
a
common
stocks, and have pursued
averaging purchase plan,
ing
have
we
approved
than
Paid in
Dividends
in advance.
sonably
Policy
York
90
of
dividend payments ban rea¬
mum
of
these
Under
prices.
Our
Indus¬
average
an
better
paying
are
to
holdings at distress
our
paid
Consecutive
cash
prin¬
cipal companies and industries.
A modest capital appreciation of
approximately 7% was registered
as of the end of the year, but more
important, this segment of our in¬
$7.06 per share in 1940 and today
that
forced
Dow-Jones
the
Index
trial
insurance
ever
in
stocks
evident when
more
it
we
com¬
Cash Divs.
time
from
the
equivalent to an increase of al¬
most 30%. Furthermore, the
in
decline
high-grade
No. Yrs.
Year in brackets indicates
cross-section of the nation's
and
ities, 15% in oils, and the bulk of
remainder
represented
by
holdings
in
a
well-diversified
Companies
Foi Life Insurance
J
1)
; cy •f,
1
T
fc
I'
t
G
I
1
'
r
1
i
'1
•
<
i
1«>
Troster,
'
-
m
%■ * *
-»
*
V
1
t
1
>
1
>
t
0
1 •« .1
1*1
Singer
&
DN 490
Co.,
New
KEYstone 0101
York
City
Specialists Rocky Mountain Region Securities
:
1
'J
Wire
T
\
a'-
•••»
■■
——■—
Number 5314
Volume 179
The Commercial and Financial Chronicle
...
(1581)
Continued
THE BIGGEST STOCK MARKET
Year in
from
brackets indicates time
which
consecutive
dividends
\
have
been
Quota-
A Record of
Appro*.
Paid in
tion
Dividends
1953
Dec.31,
Basedow
Paid
Incl. Extras
1953
1953 Div.
13%
Ducommun Metals & Supply
tools
% Yield
0.80
8
Vacuum
Corp.
9
cleaners
full
run
1.00
10
$0.94
38
2.5
7
0.15
ation
Canadian and U.S. Bonds
of
that investors
with a view to
pencils
bonds.
,
W. D. Gradison & Go.
10.0
8
suggested
—111
industry machy. [1946]
—
production
&
refining
Equity
Oil
Crude
oil
—
11
Co
-
0.40
6
„
107
4.5
[1946]
production
101
—
0.50
8
109
1.7
[1947]
Erlanger Mills Corp
Holding Co. (textiles)
8%
no
—
Empire State Oil-——
Oil
to
[1945]
Emhart Manufacturing Co.—
Glass
continue
Paul Glenn Joins
Trend
.
[1946]
Electrolux
is
participating in further price rises
in Canada, Provincial and
Corpor¬
And Canadian Bond Market
industrial supplies
and
will
sharpen
Activity for U. S.
5.8
paid.
$
Sells
market
*
j
It
Cash Divs.
Consecutive
cash
12
page
steam ahead.
IN AMERICA
No. Yrs.
from
53
9
4.4
U.S. TREASURY }7. •/. —19GJ
106
L1948J
105
Federal
Enterprises
Advertising
cialties
signs;
€
electrical
*
Fifty Broadway Bldg., Inc.—
Real
estate
Frontier
[1948]
11%
8.8
104
—
.
12V2
$0.24
$ny2
2.1
0.40
71/2
103
•J—103
7.6
5
:
.
0.95
7
Y
■/.
refiner
-
6
5.3
—
101
—
,
Refining Co.!
Petroleum
1.00
spe¬
[1948]
100
[1947]
Pecan
(R.
E.)
Co
Paul
99
—
Funsten
(Special
9»
Gauley Mountain Coal Co.—
2.00
7
21
W.
Glenn
Financial
CINCINNATI,
Chronicle)
producer
9*
[1947]
Canada j%—im
'
General American
Crude
oil
7
$0.57
391/2
8
0.80
141/4
91
*4
New
5.6
[1947]
producer
minal
1.4
—
Contract
&
ins.
Corp.:
holding
jcnvury
General
1
Dry Batteries
Production
sale
and
of
8
[1946]
;
,
Glatfelter (P. H.)
and
-
16 y4
4.9
8
1.00
19
5.3
As
Co
specialty
paper
Globe-Wernicke
furniture
6
0.40
6
1.30
8
0.40
3%
10.7
on
dollar
our
is
closely
so
related
to investment, let us see
how, by means of changing yields,
a
premium dollar could become
discount dollar.
a
[1948]
to
make a
bid
only without
corresponding offering.
in
Higher Bond
Prices
Glenn
&
with
Co.
for
for¬
Edward
many
municipal and
trading department.
Auto
insurance
ployees
for
Federal
1.6
em¬
[1948]
only
81
years
corporate
a
With First Southern
Forecast
If this theory of reducing the
premium of the dollar via lower
yields and higher bond prices has
any
merit, then the 1954 bond
WEST
PALM
Morton
S.
BEACH, Fla.
Frankel
has
plating
facture
and
clock
41/2
8.9
manu¬
vestors
Corp., Harvey Building.
To reduce the inflow
of capital requires
that it be less
attractive for foreign investors to
["1946]
buy Canadian securities.
Hanson-Van
Winkle-Munning
Plating & polishing equip.
8
f0.52
6
3.00
58
5.2
1.00
11%
8.4
1.40
251/a
5.5
7%
6.7
[1946]
Hibernia Bank (San Fran.)
—
[1948]
Holeproof Hosiery
Hosiery
7
lingerie
and
INDIANA GAS & WATER—
Natural
supplier
gas
•
[1947]
8
[1946]
\
•
See
52
page
for
advertisement
of
Industrial Brownhoist
Locomotive
,v
8
'
[1946 j
Bread
and
2.30
10 y2
2.2
'
cakes;
Pacific Coast
company.
and pile drivers
cranes
Interstate Bakeries
Iowa
this
6
Midwest
1.00
24%
4.0
and
[1948]
Southern
Utilities
Electricity supplier
Jahn & Oilier
8
20%
5.7
it less attractive to
time.
Well
investors
Engraving Co.
Photo-engravings
1.20
[1946]
To make
buy Canadian
securities requires that our yields
be
lowered
to
a
point where
money "stays at home" instead of
coming here.
Lowering our yields and bring¬
ing them back to the one-half of
1% spread as compared with U. S.
bonds is not as formidable a job
as
it might appear.
In the first
place our bond market is healthy.
There is no press for the govern¬
ment to do any major financing.
Our surpluses and our generally1
sound postwar monetary policies
stand us in
good stead at this
8
0.20
10.0
that
the
is
the
of
Bank
McLeod,Young,Weir & Company
LIMITED
Members of The Investment Dealers' Association of Canada
DEALERS IN ALL
CANADIAN SECURITIES
Direct private
wire to Montreal, Ottawa, Winnipeg, Calgary,
Vancouver and The First
Canadian
to
effective
has
We
Stock orders executed
6ervic6
Kirsch
equipment
—
blinds
0.80
f0.58
9
8.9
$11
5.3
[1948]
Co.
Venetian
6
6
Organization
station
on
Head
clearly when
our
Canada
dropped in price. At the
present time we havb actually two
bonds
classes
main
First
bonds.
[1948]
referred
Kuhlman Electric Co
Transformers
furnaces
and
8
metal
0.45
7%
5.7
melting
La France
3.3
9
0.40
17
5.7
5
1.80
26%
6.7
[1949]
(M. H.),
Variety store
Langendorf
Inc
chain
of
[1949]
and
them
under
to
liquids
Traction
the
company
bonds up,
banks
tered
which
into
that the char¬
see
have
surplus
will
be
41/2
11.1
the
1.00
9
3%
10%
9.3
due
1978
are
not
1966
a
5
0.375
6%
5.6
9
O.50
5%
8.5
to
the
be
1963
wi|h
*
Previous
t Adjusted
record,
if any,
for stock
% Earlier quotation.
a
31
figure not
i
have
on
page
54
the Bank
do
available.
Continued
Government
all
splits.
is
to
stop
turities for
Industrial
Public Utility
Public Utility
Real Estate
Mining Shares
And
can
Western
Canada
Oils
minimum of dif/'
for Canada bonds
actually
not available,
dividends and
Dec.
STOCKS
Bank & Insurance
in
Actually with the strong
the
BONDS
and
affected
demand
time,
CANADIAN
Government
as
at
this
does
not
publisher
[1945]
in
comparatively
operation the prices
be raised
BROKERS and DEALERS
and
real factor
a
only
maturities
[1949]
magazine
Service for
3%%
ficulty.
Well-known
Complete Over-the-Counter
Industrial
With
market
1963
Canada
are
7.1
California
Publications
A
only issues
in
due
and
issues
small.
0.50
bonds
CNR's
the
7
Apparel chain stores
NEW YORK
of any real size in the market are
[1947]
Macfadden
HAMILTON
the
0.50
1966.
Lytton's H. C. Lytton & Co.
QUEBEC
Since 1922
chan¬
12.9
[1945]
Food chain in northern
LONDON
KITCHENER
funds
151/2
measure
Lucky Stores, Inc
CALGARY
Act."
"Bank
2.00
[1947]
Los Angeles Transit Lines
Toronto, Canada
WINNIPEG/;
within
the prices of these
all the Bank of Canada
turities mentioned, the
instruments
and regulate
OTTAWA
VANCOUVER
"banking bonds."
Again supply and demand solves
the problem. Other than the ma¬
coverings
Liquidometer Corp.
MONTREAL
eligible
7
floor
50 King Street West,
bu!y these
8
carpets
[1946 J
Exchanges
.Office
bonds."
fall
investments
term
available
Fabrics
Auto
Makes
commonly
Banks
the
nelled
Lea
those
they
has to, do is to
Bakeries
York
In order to put
[1945]
United
West Coast baker
1962.
because
for
5
0.30
Government
"banking
as
all
the maturities between
are
and
bonds
Industries, Inc
Upholstery
Lamston
They
1954
[*1946]
to
of
are
on
it only
saw
too
Kent-Moore
Boston Corporation, New
control
Canada
bond market.
our
[*1946]
known
to
absorb
of Canada
Members
Investment
other
to
ma¬
words
Dealers'
Association
of Canada
607 St. James St., West, Montreal
supply;
needs
offering those
sale—in
Kippen & Company, Inc.
-
UNIVERSITY 6-2463
Direct Private
Wire
—
become
affiliated with First Southern In¬
change the premium to a
discount simply requires a
reduc-,
tion of the inflow of capital for
investment.
Metal
i
(Special to The Financial Chronicle)
.
Great Lakes Industries
the
Stock
was
To
Govt. Employees Ins. Co
W.
of
Cincinnati
Mr.
the
have shown how the pre¬
we
mium
goods and almost
more
would benefit.
everyone
[1948]
[1946]
Office
Graph by I tor Murray
able to sell
0.80
and
members
associated
Brockhaus
9.6
6
parts distributor
bond
61/4
batteries
Genuine Parts Co
Book,
0.60
York
merly
[*1946]
co.
Building,
Exchanges.
-
General
Bank
Oil
Ohio —Paul
Glenn has become associated with,
W. D. Gradjson & Co., Dixie Ter-t
9.5
—
Bituminous
Auto
The
shelling [1949]
97
*
to
between
Montreal
and
Toronto
^
54
The Commercial and Financial Chronicle...
(1582)
'«Jb
Continued from page
No. Yrs.
53
1
from
dividends have been
THE BIGGEST STOCK MARKET
Cash Divs.
Paid in
Dividends
1953
Paid
Incl. Extras
paid.
Quota-
Approx.
Marshall-Wells Co.
31,
1953
Based
Mar-Tex Realization
oil
Crude
(W. L.)
8
Corp.__
0.10
2.8
3%
28%
0.9
Fire
32
4.1
1.15
23%
4.8
2.00
28%
6.9
$1.31
i_
5
Minnesota & Ontario Paper._
7
8
Co
16
0.70
Operating public utility [1946]
9
Mobile Gas Service Corp.—
,
6
cranes, etc.
0.30
7
1.05
0.45
6
gas
coal
8
18
14
bulk
0.50
15
9
0.50
8%
5.7
/ 5
0.25
2%
9.1
8
0.35
3%
10.0
1.22
17%
0.90
15%
[1945]
5.8
-
0.20
3.4
5%
company's
&
7
on
page.
9
^
1.50
$62-
0.15
5.5
2%
7
; 1.39
31%
producers of many
■•./„•-:
.-/i-v• '-v..;".
Co
Heat
1.20
81/4
14.5
0.90
16%
5.6
5
0.80
19%
4.1
8
1.00
11%
9.0
8
and
1.60
20%
7.8
6
1.00
33%
3.0
6
0.50
7%
6.7
7
0.20
5%
3.4
0.96
17%
5.5
7
storm
screens;
public
utility
8
;
[*1946]
and
fuel
-
supplied
[1949]
Seismograph Service Corp.__
1.00
Co
6.6
15%
Surveys
oil
for
[1946]
&
gas
6.2
Automatic
time
341/2
5.8
1.25
$201/2
6.1
0.90
controls
1.625
6.3
25%
5
0.50
•>
'
13%
6.9
Fishing reels, rods, & lines [1946]
Southdown
tion
[1948]
Sugars, Inc
Natural
and fluid system com¬
ponents—industrial and aircraft
Steel
cal
•j."- /
9
2.00
oil refineries;
[1947]
Permanente
7.1
28%
mills;
Cement
1.25
allied
and
31 figure not available,
Electricity
1.55
Porter
271/4
5.7
and
2.00
31%
22%
8.0
1.80
CL.
8
2.50
70
3.6
See
•
1.09
18%
6.0
7
1.00
21
4.8
0.85
14%
5.9
[1946]
utility
&
Steamship
FINANCE,
A
finance
States
ern
v./
•
8
[1947]
LOAN
Personal
pumps;
public
Fruit &
Bananas
STATE
Texas
8
Tel. Co.
6
Operating
Standard
steam locomo¬
tive equipment [1946]
basis.
supplier
[1946]
supplier
6.3
[1946]
(H. K.) Co. (Pa.)
Industrial
gas
Southwestern States
[1948]
holdings
While the actual dividends paid in 1953 amounted to $1.80 a
share, the quarterly per share dividend rate has been in¬
creased to 50c thus putting the
stock on a $2.00 a year
6.0
[1947]
products
Louisiana
21
natural
Southwestern Elec. Service
Pickering Lumber Corp
California,
i
[1947]
chemi-
Philadelphia Dairy Products
Milk
Service
[1948]
Southwest Natural Gas Co.
Co
Large Western producer
Public
supplier
gas
Southern
plants
planta¬
sugar
[1948]
Southeastern
Hydraulic
10.0
industries
'
Shakespeare Co.
2.00
freight; Western States
[1948]
Previous record, if any, not available,
t Adjusted for stock dividends and splits.
business, South¬
[1948]
company's
advertisement
on
this
page.
STATE LOAN AND FINANCE CORPORATION
EXECUTIVE OFFICES-1200
EIGHTEENTH
ST.,
N.
primary characteristic during the post-war
tions
extend
enables the
can
to
fifty-one cities in fourteen
to
consumer
industry today and
future earnings.
acquire,
to pay
use
an
D.
cus¬
......
Volume of Business
net income.
Opera¬
orderly
manner
out
.
$59,368,188
......
of
which
We also help them
adds
to
the
overcome
family life,
$54,157,621
$ 9,207,391
$ 8,159,040
$ 7,111,950
$ 1,213,700
$ 1,047,090
Expenses & Taxes
Net Income
.
Number of Times Preferred
of
Dividend
Requirements Earned
.
3.96
Earned Per Share, Common
of the American
\
.
$ 7,993,691
....
$1.35
....
unforeseen emergencies,
security and happiness
57
„
Gross Income
Dividends
all
1952
.72
Total
Our business
states.
C.
1953
Number of Offices
and enjoy the products of Ameri¬
for them in
WASHINGTON,
It has again
high records in volume of loans made, number of
served, loans receivable outstanding, and
now
years.
W.,
FACTS OF INTEREST AS OF DECEMBER 31, 1953 and 1952
During 1953, the Company continued the substantial growth that has
tomers
Paid, Common
.
3.22
,/.•
$ .85*
$ .80
«
*Annual Dividend
ASSETS:
rate
increased
to
$1.12
$1.00 December 1953.
LIABILITIES:
''
•
Cash
.
.
Receivables
.«
•
k
-
•
•
1953
•
1952
$ 4,402,512
$ 3,843,898
34,195,469
29,080,156
1,206,507
1,090,506
,
322,082
.
681,123
.
770,860
•
........
Less Reserve for Losses
.
.
1953
Payable
Accounts
........
Payable & Accruals
.
1952
$16,175,000
|
Notes
$13,520,000
,«
Fixed and Other Assets
Deferred Charges
•
*
.
.
1,484,565
1,474,949
3,008,866
2,333,575
.
4,000,000
4,000,000
.
5,727,5C0
3,485,000
.
Unearned Interest & Premiums
.
284,172
Senior Debt Due 1957-60
.
597,731
Subordinated Debt Due 1960
.
686,087
Minority Interest (subsidiary)
.
.
1,088
1,317
Capital Stock & Surplus
.
•
8,768,520
8,586,697
$39,165,539
Other Current Assets
$33,401,538
'
.
.
,
.
.
.
■
$39,165,539
$33,401,538
Annual
L
V
Report Available
on
Request
i
•
TV"
4.4
.-.V'.v'
•
Seattle Gas Co.
[1949]
|
new
2.4
[1947]
Operating
TV speakers, transformers,
Motor
[1945]
established
:
,
Scranton-Spring Brook Water
&
this
:
[1945]
(F. C.)
doors
7.1
packager
advertisement
candy
with
windows
,
2.0
49
&
Co.__
[1947]
Russell
Metal
1.00
miller
■*..
Affiliated
[1947]
ammunition
[1946].
Royal Dutch Petroleum (NY)
utility
public
producer
arms,
rice
Chocolate
Service
[1945]
♦
been its
3.3
,
candy [1949]
brewer
Rockwood
10.0
high grade paper for books
magazines [1947]
and
9.4
17
1.05
9
[1945]
Dec.
9
[*1946]
[1947]
.•See
Parker Appliance Co
Co.
X Earlier quotation.
10.0
11%
Cuban interests
Operates Louisiana
Nazareth Cement Co.
p
5.3
0y2
1.40
Industries, Inc
Oxford Paper
7.3
6%
1.70
7
Pennsylvania producer
5.6
1.125
Top Brewing, Class A—
nations
Radio,
[1946]
cutting tools
business
company.
Cincinnati
[1947]
Pennsylvania Engin'g Corp.Tool
6.6
16
0.50
Oxford Electric Co
Equipment for oil and gas fields
[1947]
Precision
31%
pl.80
7
Queen Anne Candy Co.
[1948]
National Tank Co
National
1953 Div.
'
4.1
7%
on
1953
-
[1947]
RIVER BRAND RICE MILLS
Pacific Intermountain Exp.__
National Motor Bearing Coseals
trust
Bar and
Paragon Electric Co
Makes lubricant
12.1
14
Makes
Morgan Engineering Co
Produces mills,
I
[1947]
wholesaler
leather
and
Winchester
parts [1948]
Moore-Handley HardwareHardware
1.70
Ry. Co.
Red
insurance
explosives
5.3
17
$0.90
Based
[1946]
Equipment Co.
Automotive & ry.
•'
[1945]
Operating public utility
Monroe Auto
Holding
refractory materials
&
Bituminous
4.4
•
31,
Holds interest
co.
Prudential Trust Co., Ltd
Conn.
Old Ben Coal Corp
Olin
Edison
27%
6
Punta Alegre Sugar Corp
[1947]
distributor [1949]
oper.
5.9
General
Refractories
American
brick
Electric
Newsprint [1947]
Missouri
longer
4.7
$16
1.60
Co
Gas
Northwestern Public
[1946]
utility
Minneapolis Gas Co
gas
0.75
Co
Southern
Makes shoe
[1945]
8
Natural
No
[1948]
Diversified
3.7
$13%
Approx.
% Yield
tion
[1948]
in Detroit Steel Corp.
Northwestern Leather Co
Michigan Gas & Electric—
public
6.3
16
Leading
0.50
Incl. Extras
Portsmouth Steel Corp.
[1947]
registers; accounting
Operating
""1.00
Northeastern Ins. of Hartford
[1949]
9
Paid
QuotaDec.
[1945]
carrier
North
$0.17
1953
Portland General Electric
electronics
&
Paid in
cash
consecutive
Electric utility
Electric
public utility in
Norfolk &
4.2
19%
1.20
6
McCaskey Register Co
machines
9.5
$22
other
&
Virginia & North Carolina freight
5
which
dividends have been paid.
[*1946]
Corp.
Electro-mechanical
Cash
New Haven
[1948]
Diversified Insurance
apparatus
4.7
[1946]
producer
from
manufacturing [1949]
Operating
Maryland Casualty Co
Maxson
256
Cash Divs.
Dividends
Year in brackets indicates time
[1947]
New England Lime
1953 Div.
Lime
12.00
No. Yrs.
Consecutive
1
$
2.10
Co.—
plumbing
Holding company
[*1945]
lines
kindred
&
ware
% Yield
on
wholesales hard¬
Manufactures &
of
New England Gas &
% Yield
tion
Dec.
$
9
Incl. Extras
Approx.
tion
supplies [1947]
No. Yrs.
dividends have been
(N. O.)
Wholesaler
Consecutive
cash
consecutive
which
Paid
paid.
Quota-
Based on
Dec. 31,
1953 Div.
1953
..
Nelson
from
1953
$
IN AMERICA
Year in brackets indicates time
Paid in
Dividends
cash
consecutive
which
Cash Divs.
Consecutive
Year in brackets indicates time
Thursday, April 8, 1954
'fm
«*>
«'
i
.
.
.
•My
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1583)
Continued
THE BIGGEST STOCK MARKET
IN AMERICA
No. Yrs.
from
#
which
consecutive
dividends have
been
Cash Divs.
Quota-
Paid in
tion
1953
Paid
Incl. Extras
of
as
cash
paid.
Dec.
'•
Investments
31,
Based
1953
For Life Insurance
on
1953 Div.
Stern & Stern Textiles
Silk,
rayon &
6
9.5
9y2
7
"
>
■■■•
fO.98
''/. •;
■
goods and
4.9
2oy8
close
;
[1947]
Stuart Co.
5
8
iron
alloy
castings
Thermometer, barometers
Diversified
investment
Aircraft
8
Freight carrier
Wholesale
.
Toro
0,75
9%
6
1.40
22%
Towmotor
Fork-lift
rods
our
common
1.50
16%
/ 9.0
1.40
;
7
2oy4
6.9
19%
10.4
2.00
1.00
6
_
0.50
8
drain
tile
Wide
3%
$1,000 Compounded:
Semi-Annually at 5%
23 y2
'
someone
4%
171/2
may
6%
5%
-
7%
10
11%
metal
V."
-
5th Yr.
1,030
Difference
10th Yr.
15th Yr.
to
The
Planning
Financial
Chronicle)
20th Yr.
1,161
1,563
1,347
Two With Keller & Co.
(Special
1,814
$21
$119
$292
$535
$871
to
5%.
28%
64%
110%
169%
By Compounded Int. at 3%_
2.1
-and
The
Alan
connected
By Compounded Int. at 5%_
3%
16%
35%
56%
Financial
Chronicle)
221/2
4.4
0.80
*9%
181/8
0.50
141/4
0.40
6
1.20
I3y4
9.1
7
f0.29
41/2
34%
now
Co., 53
6.4
2.50
are
&
(Special to The Financial Chronicle)
3.5
8
Keller
Kidder, Peabody Co.
11,000,000 mESWENT WITH
6.6
6
Chandler
State Street.
EARNINGS COMPOUNDED SEMI-ANNUALLY
8.4
1.20
R.
with
81%
KLlllons
-
1.00
7.2
'
7
u
BOSTON, Mass.
—
Sherley M.
Rines has joined the staff of Kid¬
[1947]
der,
Upper Peninsula Power
utility
Cecil
associated
BOSTON, Mass. — Maxwell M.
Harvey has become affiliated with
Investors Planning Corporation of
New England, Inc., 68 Devonshire
•
prods.
J.
—
become
With Investors
economic method
14
has
Dixon, Bretscher Noonan,Inc., First National Bank Building.
Joins
h
6
[1945]
Bumper Co.
Operating public
an
Sullivan
with
$1,051 $1,280 $1,639 $2,098 $2,685
Semi-Annually at 3%
5.3
8
variety
perfect
soon
1st Yr.
of Dollars
footwear
who knows but that
(Special to The Financial Chronicle)
SPRINGFIELD, 111.
A
1
9
Corp..
Spring &
With Dixon Bretscher Co.
BOSTON, Mass.—John J. Berry
18%
'
Women's
could be; the non-ferrous
industry,
including
such
as titanium, cadmium and
aluminum.
Then, of course,
there, is always
the
good
old
standby of chemicals and its allied
groups such as the drug industry
and even synthetic fibers.
And,
metal
231/2
6.8
[1948]
types of brick;
Shoe
Industrial Average will reach 400
before it touches 200.
Other
% of Original Invest. Earned:
—
fore¬
a
probably inter¬
Value of
7
9
Co..
are
groups, to mention a few at ran¬
Rate:
Years:
you
Street.
231/2
[1946]
S.
6.2
[1945]
redwood
fraught with possibilities.
stocks would
Dow-Jones
matter for the very near future.
field of electronics is also
The
Semi-Annually Compounded Itfterest Rates
[1947]
1'
Various
U.
production,
incomes — and
T
1.60
7
United Brick & Tile
S.
7.9
[1947]
Corp.
Lumber
application in a
of atomic energy is
[1947]
mowers
truck
California
U.
.. «
Interest
'
-
Manufacturing Corp.—
Power driven
Union
higher
addition, there will be many
new
fields of activity
and en¬
deavor, which we, who are inter¬
ested
in
common
stocks,
are
5.5
7
Mfg. Co.———
bronze
and
a
common
ested in my prediction. For
what
it is worth I will
go "out on a
limb" and say that the
successful
way
on
complete without
cast, and
things
be
—
Brass
a
Number of Years in Which Money Doubles at Different
[1948]
gas
methanol prods.
Titan Metal
6
t0.33
that
peacetime
be
(Special
Tennessee Products & Chem.
Pig iron;
and
more
not
carefully.
To mention
few, it would seem likely
a
areas.
A talk
[1948]
Transmission
natural
75%,
50%
tain
dom,
will
[1947]
Gas
be
The electric utility
use.
In
7.3
13%
.
6
about
to
come
stock investments.
1.00
of
Corp
could
Automobiles
employment, and
higher dividends on
4.9
32y2
/ 1.60
—
only
there
7.3
til
v7/'.
Tenn., Ala. & Georgia Ry. Co.
Tennessee
which, as you know, is be¬
coming extremely critical in cer¬
watching
industry
seems
confident
that
electricity use will treble. In
short, with more mouths to feed
6.2
19%
[1949]
Airplane manufacture
'
;
5
Inc.
fund
ought
,s" \
[*1946]
Fund,
electronics securities
Temco
0.80
[*1945]
Taylor Instrument Cos
Tele.-Electronics
1.20
[1946]
Taylor & Fenn Co
Grey
there
5.0
services
doubling.
increase
homes in
9
distributor
gas
16
0.80
[1949]
Suburban Propane Gas Corp.
Propane
to
would
■
products
employment is also
Gross national product —
rising.
Large Philadelphia department
Pharmaceutical
that
means
nylon fabrics [1948]
Strawbridge & Clothier
store
0.90
water to potable
sea
and
Companies
5
converting
water.
This
would
correct the
serious water shortage which ex¬
ists in some of our interior
points
% Yield
Dividends
52
page
Common Stocks
Approx.
Consecutive
Year In brackets indicates time
from
55
Peabody
<
&
Co.,
75
Federal
Street.
in Mich.
11948J
Utah
'OH
Southern Oil Co
exploration
and
With H. P. Nichols Inc.
development
(Special
[*1948]
Sea' Food
Van Camp
Cans
tuna
and
other
Co
fish
&
Financial
Chronicle)
Nichols, Inc., 53 State Street.
Lee
[*1947]
Warner Co.
Sand, gravel
[1946]
lime
and
Weber Showcase &
store fixt.;
products
to
The
Financial
Chronicle)
BOSTON, Mass. —Mrs. Georgia
Fixture-
0.40
7
At
6.5
te %
At
6
0.75
9
—
_
Higginson Adds
(Special
soda fountains [1947]
Wells-Gardner Co.__
of
12.5
3
15
6
1
3
b
5
6
3
%
l
5
6
rrrrr
*
B.
Cooke
staff
End
5th Yr.
10th
20th IT.
15th Yr.
Yr.
of
has
Lee
been
added
Higginson
tion, 50 Federal Street.
[1945]
West Virginia
Wholesale
9
retails
351/2
1.60
271/8
5.9
7
water
3.4
8
Water Service
gas;
1.20
0.40
21/2
16.0
,/r 0.50
tl5%
3.2
1.00
15%
■
and
[1945]
Western
Light & Tel
Supplies
electric,
telephone
water
[1946]
gas,
service
Wilton Woolen
Wool
fabrics
and
Co.__
for
auto
industry
[*1947]
Winston & Newell Co.—
Wholesale
grocer
6
—
[1948]
•
Wisconsin Hydro Electric Co.
-
6
6.3
Operating public utility [1948]
'
Wisconsin Power &
Electricity supplier
8
Light—
Production
1.20
5.3
22%
[1946]
•
•
,
Wood>(Alan) Steel Co
6
1.40
16%
7
2.00
34
RICE
8.7
5.9
includes stainless steel
PRODUCTS
[1948J
Younker
Bros.
Department stores in Midwest
[*1947J
*
Previous record, if any, not available,
for stock dividends and splits.
t Adjusted
J Earlier quotation.
Dec.
OUR
31
figure not
27th
available.
RIVER BRAND RICE
HOUSTON, TEXAS
Specialists in Inactive Stocks of Great Value
'
MILLS/INC.
YEAR
FOR BANKS AND BROKERS
,
ELCAMPO, TEXAS
MEMPHIS, TENN.
NEW YORK
JONESBORO, ARK.
EUNICE, LA.
Example: WHITE LABORATORIES "B"
A growth stock paying
available
years.
to
return
goodly income. Small
5%, based
Manufacturers
of
upon
rale
amount
paid in
pharmaceuticals,
also
stock
past
few
GEORGE A. ROGERS &
120 Broadway,
;
.
CAROLINA BRAND and RIVER BRAND
CO., INC.
PACKAGE RICE
New York 5
Telephone WOrth 4-6930^.
PRODUCERS OF
.
famous
"FEENAMINT", "ASPERGUM", and "MEDIGUM*.
_
>
quist has joined the staff of H. P.
Iron Co
Ingot molds and plugs
ice
The
[*1948]
Vulcan Mold
Radios
to
BOSTON, Mass.—Tora U. Oeaf-
4.7
[1946]
Vanity Fair Mills-_
Lingerie
00
.«
NT' At
*r
<*•
*r
,-v
«
vr
*
*
t*
to
the
Corpora¬
j
1
"56
The Commercial and Financial Chronicle...
(1534)
PUBLIC
THE
*
OF
Mar,
rAWC
DAnliij
A iDrtITT
!%T"i7i¥ arc
ALdO IJ1
jnews
BANK
NATIONAL
COMPANY
TRUST
AND
YORK
NEW
Dec. 31/53
31/54
$
Total
S
511,587,159
resources—
546,341,168
456,549,777 490,903,236
Deposits
Cash and due from
CONSOLIDATIONS
■
Bankers
and
REVISED
82,212,919
91,222,015
263,625,024 258,764,563
Undivided profits-,.
10,379,711
12,517,723
discounts
&
a
if
in
$
of the staff handling
banking relationships in
charge
Chase's
Bortscheller, President,
Frederick
Siefering, Vice-
-Senior
re-
discounts
&
Undivided
profits—
Mr. Bell's entire business career
I.
He was
appointed to the official staff as
Cashier in
Assistant
an
vanced
•in
War
Vice-President
Second
to
Vice-President
1929,
ad¬
1922
in
1942,
Total
resources-
Deposits
______
Loans
OF
CITY
'
OF
BANK
NATIONAL
CHASE
*•*
,660,185
1,405.297,410
profits
94.868.600
90,884,015
$
Total resources-
5,549,140,239 5,562,461,665
X>eposits
5,048,692,486 5,062,087,048
Govt,
8.
1,496,851,878 1,478,274,159
banks„
from
tS.
due
and
Cash
if
Govt,
S.
B.
818,864,060
833,048,305
857,058,974
917,612,832
Deposits
Cash
U.
BANK
543,372 951
572,229,541
discts.
638,680 ,984
795,434.240
proiits
19,720 ,585
22,220,580
&
COMPANY,
YORK
TRUST
Dec. 31,
Mar. 31, '54
.Deposits
Cash
JJ.
due
and
Govt.
8.
se*r
holdgs.
curity
Loans
426,903,671
452,734,761
discts.
712,713,153
19,564,012
773,596,172
&
Undivid.
and
profits
»
18,126,175
if
if
U.
Govt,
S.
—
se¬
holdgs.
377.004,444
373,250,363
discts.
578,367,298
607,671,482
profits
curity
17,864,210
17,513,424
Si
Loans
Undivid.
if
Frank C. Grady,
Ivan F. Read,
BANK
395,600,967
due
banks
from
1,487,396,547
1,323,864,572
412,974,067
Deposits
591,062,560
546,112,661
and Claude F. Shuchter have been
*
*
-
NEW
©f New York, it was announced
by
Mr.
Cash
Shuchter
connected
are
1,323,583,821 1,293,606,987
and
U.
due
429,901,357
398,538,094
holdgs.
365, 118,180
324,376,950
discts.
569, 038,051
622,-38,695
profits
17, 896,881
17,266,269
banks—
from
identified
Grady has been
Mr.
Govt,
S.
curity
Loans
&
Undivid.
se¬
$
with the Trust Administration De¬
Mr. Shuch¬
NEW
The Bank for
Fales, President 'of
Savings in the City
of
assets
As
the
Bank
million
400
an
have
dollar
indication
reached
mark.
service
of
resources
Deposits
Cash
I
holdings
Si
idends have been paid to deposi¬
tors since the Bank started in 1819.
The Bank for Savings was the
-first mutual' savings bank in New
York State and among the first
fices
country.
in
than
Today, four of¬
Manhattan
serve
more
At
the
*
NEW
dent.
resources
—
Deposits
Mr.
Jesser
is
assigned
Central Atlantic
Cash
trict of the Domestic
to
Division at
Head Office.
the
bank
Mar. 31, '54
$
Total
resources-
Deposits
Osb
and
Irom
XL
8.
—
curity
Loans
&
Undivid.
n.
217,694,718 202,285,252
holdings
Loans
&
200,029,155 215,044,675
discounts 326,170,364 327,213,800
J.
P.
MORGAN
&
CO.
INCORPORATED
Dec. 31/53
$
$
Total
775,218,016 797,390,192
resources
Deposits
—
Cash and due
14,649,131
NATIONAL
285.688,825
13,633,263
#
BANK
Mar.
$
45,556,381
42,175,786
OF
31/54
$
Dec. 31/53
$
5,326,864,855 5,538,214,433
Deposits
517,255,530 579,83.2,884
—
Cash and due from
1,464,711,887 1,484,190,123
banks
U. S.
137,399,130 158,121,152
Govt, security
holdings
T
—
Sr.
Undivided
179,747,825 170,878,809
discounts 235,119.135 269.33f>.?78
proiiUL/
12,543,563'
if
Trust
Pennsyl¬
on
anni¬
81st
old
of
banks
the
profits—
1,116,110
980,286
if
HENRY
103,370,414
72,805,175
Cash and due from
12,342,011'
g
902,348,179
resources
Cash
886,249,009
817,461,282 803,515,380
and due from
260,730,412 289,440,691
U, S. Govt,
security
.
holdings
Loans
196,030,168
181,554,523
discounts
&
326,070,045
315,437,456
profits—
11,545,100
16,546,815
10,827,463
47,844,211
20,865,393
2,554,627
discounts
&
10,010,853
42,865,932
21.594,435
2,504,552
security
_______
*
*
*
TRUST
Mar.
Total
Dec. 31/53
31/54
63,150,798
The
banks
15,049,562
gradually
Anglo
fices
is
by
13,023,288
the
stock
since
rate of 67 cents
Dec. 31/53
31/54
$33,152,840 $33,134,994
resources
30,761,801
30,730,269
8,336,242
8,528,626
13,572,917
______
Loans
12,368,200
9,710,033
discounts
&
Surplus
8,661,648
undi¬
and
vided
1,098,086
1,121,017
if
❖
*
$4,262,000
of
231st
consecutive
made
on
April
6
"The
since
Dime"
dividend rates for
if
California cities stretching from
Redding to Taft. Its assets exceed
three-quarters of a billion dollars
it serves approximately 300,depositors.
v
It is with
have to
the
the
sav¬
the
if
is
operating
bank,
branch.
•>
"
* /■
in
paid
each
*»•
announce
that the Earl of
years,
by reason of advancing
has resigned his seat on the
of
Standard
The
Bank
of
Africa, Limited, and of its
auxiliary, The Standard Bank Fi¬
nance
&
Development Corpora¬
tion Ltd., as from 31st March 1954.
Lord
Athlone
first
became
a
Director of the Bank in
1931, and
in accepting his decision with pro¬
found reluctance, the Directors in
recorded
London
their
warm
ap¬
preciation of the long and valu¬
services
dered to
our
which
he
has
ren¬
Institution.
Doreitnis-Eshlemait
Appoints Two
PHILADELPHIA, Pa. — Doremus-Eshleman
Co., Philadelphia
advertising and public relations
firm, announces the appointment
the
at
on
year
annual
share since 1950.
of
Bank
Virginia
is
the
largest bank in the State.
On Dec. 31, 1953, total resources
Elizabeth E. RafteryPhilip R. Livingston
amounted to
$100*018,000. Through
R. Livingston to the
offices in six cities, the Bank of Philip
renders comprehensive individual newly created post of Director of
and commercial banking service. Financial Advertising.
The firm
if
at
1
head
two
the
*
*
also
*
Noonan, member of the
* 1
announced
Miss
Elizabeth
sites
new
* •* *
the promotion
of
E.
Raftery to the
Production Manager.
Trust & Savings Bank, position of
Chicago, 111., staff since July, 1936, Doremus-Eshlemani Co. was
was
elected Assistant Secretary, formed Jan. 2, 1953, through the
it was announced by Bartholomew merger of the Philadelphia office
O'Toole, President.
Miss Noonan, of Doremus & Comp.any and the
who is Secretary to Paul E. Pear¬ Benjamin Eshleman Co.
Mr. Livingston in his new posi¬
First Vice-President and Sec¬
of the Bank, is the first tion will supervise and service all
officer in the 71-year his¬ financial accounts of the Philadel¬
tory of the Bank.
As assistant to phia agency.
He has been asso¬
Mr. Pearson, she handles the vari¬ ciated with Doremus since 1947
son,
retary
woman
ous
corporate records of the Bank.
*
*
if
Albert Wagenfuehr was
a
elected
the
board
of
a
directors
March
on
Miss
the
Eshleman Co. since 1938 and As¬
sistant Production Manager since
Wagenfuehr, who recently
announced
his
resignation
Chairman of the Executive Com¬
mittee
and
Director
of
Boat¬
Lou's,
a
will begin his new duties May
Wagenfuehr has
sociated
with
since 1911.
been
Boatman's
1943.
as
man's National Bank of St.
Mr.
when he joined the Philadelphia
office as an account executive.
Raftery, widely known in
graphic arts field, has been
meeting of associated
with
the
Benjamin
Vice-President of First National
Bank in St. Louis at
Mr.
April 10. Thomas
a Vice-President of
will
••
a
been
30.
in Manhattan, will open a Queens
branch
at
41-84
Main
Street,
Flushing, on
F. Goldrick,
v
much regret that we
Athlone,
Pullman
The Federation Bank and Trust
now
of¬
fourth
extra dividend has been
State Banking Board removed
Co.,
35
Central
April 1, 1954.
de¬
301,159
to
Today's payment includes the
regular quarterly dividend at a
rate of 2y2% a year, plus an extra
dividend for the quarter at an
annual rate of ^Tof 1%. This is
the second successive quarter for
on
and
first such payment being made on
Ursula
was announced by George C.
Johnson, President.
This is the
largest dividend in the Bank's 94year history.
ceiling
has
today
Northern
According to the offering circular,
was
by The Dime
Savings
Bank of Brooklyn, New York, it
an
Bank
the Bank's directors intend to pay
25 cents a share quarterly, the
its
as
dividend
positors
by
banking
12
profits—
Payment
being
1924,
The
D. S. Govt, security
purchased
were
have
Bank's
1,402,743
Total
a
the
outstanding stock, the balance
being held publicly.
10,585,486
*
$20.25
at
an import¬
established
and
45,281,078
*
April 6
on
of
was
of the Bank's issued
1,502.782
COMPANY, NEW YORK
Leides-
Francisco.
aijd represent approxi¬
9,745,067
CLINTON TRUST
made
underwriting group from
Morris Plan Corporation of
51,505,122
&
207,312
Virginia,
the
discounts
holdings
of
of
priced
Undivided profits—
Loans
and
San
entered
20
in
Eastman, Dillon & Co.
stock
Dividends
—
security
in
Streets
headed by J. C. Wheat
share. The shares
Cash and due from
U. 8. Govt,
California
of
field.
able
Va„ capital stock, $10
a group
& Co. and
Bank
was
mately 57%
70,884,856
„—
if
offering
The
value,
par
America
$77,346,316 $69,808,030
resources
Deposits
of
Richmond,
The
COMPANY,
YORK
NEW
if
public
shares
by
banks
Loans
Dec. 31/53
§
Total
A
Dec. 31/53
70,479,118
holdings
PA.
Mar. 31,'54
.
YORK
31/54
102,028,980
resources
Deposits
U. S. Govt,
BANK,
BANKING
NEW
Mar.
Total
NATIONAL
PHILADELPHIA,
.
Undivided
SCHRODER
located at the northeast
was
Board
if
PHILADELPHIA
THE
42,994,491
THE
687.899,411 730.759.723
38,294,295
ings banks last October.
Total resources
2,263,264.271 2,368,582,461
T 55,609,736
72,S6S,329
39,984,818
CITY OF NEW YORK
Dec. 31, '53
and
day.
same
banks
CORPORATION,
paid
if
if
Bank
Pittsburgh,
if
which
discounts 299,659,975
&
Undivided profits—
was
;
discounts
Si
165.348,075 197,683,851
security
holdings
its
in San Francisco in 1850 and that
000
went
r
holdings
Loans
217,957.979 238,456,673
—
U. S. Govt,
Loans
688,154,905 687,570,699
from
banks
holdgs. 1,370,412,757 1,539,876.061
discts,
*
5,868,569,303 6.049,021.671
se¬
profits
14,352,161
14,937,577
Mar. 31,'54
y.
due
banks—
Govt;
of
$
and due from
banks
FIRST
city
Y.
690,399,839 678,684,363
I
national
N.
Dec. 31,'53
781,839,412 773.727,082
on
Dis¬
CO.,
U. S. Govt, security
regular meeting of the
Bank's
33,761,982
—
,,
$
Total
if
April 6, Edward A. Jesser, Jr.,
formerly an Assistant Vice-Presi¬
dent, was appointed a Vice-Presi¬
6,388,443
6,880,541
TRUST
and
National
Dec. 31/53
31/54
security
holdings
Mar. 31,'54
board of directors of The National
the
-
U. S. Govt,
if
YORK
the
ing business that
and
$100,000
Deposits
banks
340,558,680 334,146,182
discounts 192,999,756 215,578,840
if
Cfty Bank of New York held
OF
from
—-
Undivided profits—
200,000 depositors.
&
THE
20
Mellen
Cash and due from
if
dollars in consecutive interest div¬
the
117,771,112
due
Deposits
216,390,229 236,598,915
the public, the sum of 390 million
in
106,323,380
Cash and
745,557,276 774,712,761
Undivided profits—
National
Francisco, Calif,
marked
liquidation,
voluntary
$
139,867,701
801,742,018 830,021,173
U. S. Govt, security
Loans
to
___
——
and due from
banks
of New York, announced that the
the
Dec. 31,'53
$
31,'54
$
Total
DeCoursey
CO.,
TRUST
YORK
Mar.
*
*
NEW YORK
$
Mar.
ter joined the Bank in 1946.
si:
BANK
of
stock
if
*
if
EXCHANGE
CORN
tal
■'
'■ V
|
125,749,087
;
resources-
*
partment. Mr. Read has been with
the Bank since 1927.
1,409,686
if
Total
Dec. 31, '53
1,479,939,919 1,435,342,124
resources-
Deposits
with investments since joining the
-hank
in
1948, while Mr. Read
-and
1,441,733
$
Total
San
of
corner
into
effective
absorbed by
vania, at the close of business the
YORK
the United States Trust Company
Benjamin Strong, President.
One
capi¬
common
52,301,726
Undivided profits—
Mar. 31, '54
Pennsylvania, with
50,921,454
if
SCHRODER
appointed Assistant Secretaries of
if
Company,
profits—
COMPANY,
MANHATTAN
THE
OF
Anglo-California
South
$
1,482,850,327
1,333,207,921
resources-
Cash
banks_-
from
Dec. 31/53
BANK
Dec. 31, *53
$
Total
if
The National Bank of Ford City,
YORK
NEW
Mar. 31, '54
per
53,241,508
discounts
-/./V#
J.
'53
$
1,895,091,708 2,006,636,863
1,704,392,314 1,816,211,892
Total resources-
COMPANY,
$20
36,483,219
if
IRVING
at
5,000
44.743,475
Si
*
*
issued
by
$
holdings
,
Undivided
❖
increase
to
capital
&
U. 3. Govt, security
Loans
banks
se¬
holdgs.
curity
Undivid.
TRUST
&
NEW
Govt,
S.
voted
Mass.,
share, a total of $100,000 of new
capital.
March
Deposits
484,286,064
478,325,705
23
be
to
Brockton
The
Brockton,
common
shares
YORK
31/54
Mar.
1,563,940,323 1,656,719,012
-
banks—
March
of
as
of
Bank,
149,512,917
138,814,038
1,842,154,414
due
and
from
as
if
if
The bank grew out
Shareholders
National
33,847,965
$
s
Loans
Chairman.
CHEMICAL
NEW
Dec. 31, '53
1,746,800,273
Total resources-
April 2 by N. Baxter
on
OF
Cash and due from
//
'54
Mar. 31,
The
dorff
YORK
NEW
BANK,
if
if
if
125,441,065
Undivided
if
#
has beeiv ap¬
Murray
29,279,761
31,755,863
if
if
136.067,294
resources
banks
HANOVER
freys Carlin, President.
$
Total
se¬
•'
•
THE
of the Bank's consumer
department,
it
was
an¬
nounced on April 1 by Walter Jef¬
if
BANK
NATIONAL
COMPANY
Mar.
882.219,593
812,458,501
piofits
14,325,284
if
GRACE NATIONAL
Street) of Chemical Bank & Trust
^Company, New York, it was an¬
Jackson,
Undivid.
45,879,229
14,345,284
$
discts.
&
58,455,044
44,812.160
if
STERLING
TRUST
Dec. 31, '53
holdgs.
curity
Loans
if
pointed to the advisory board of
the Brooklyn Office
(50 Court
nounced
U.
52,321,381
56,164,844
if
Paul
926,919,119
952,080,766
profits
discounts
Deposits
banks—
59,440,816
2.933,112,690
due
and
from
2,294,239,737 2,393,667,410
discts.
&
Si
THE
2,506,516,171 2,699,398,711
se¬
holdgs,
curity
2>oan£
ajndlvid.
Cash
Vice-Chairman,
Johnston,
office
lyn, N. Y. as Assistant Cashier in
COMPANY,
TRUST
$
$
St.
West, Anglo was incorporated on
April 5, 1873, as the Anglo-Californian Bank, Limited.
Its first
5
57,618,254
holdings
YORK
Mar. 31, '54
Deposits
the
versary.
the
Capital and surplus
2,827,499,202
resources-
if
if
Sigurd C. Olsen has joined the
Lafayette National Bank of Brook¬
234,811,308
203,026,084
security
*
Total
Dec. 31/53
31/54
52,927,654
discts.
THE
Dec. 31,'53
YORK
from
banks
Loans
CO.,
&
194,948,523
Cash and due
YOIIK
NEW
Mar. 31,'54
HARRIMAN
225,965,244
resources
U. S. Govt,
NEW
has
of
Company,
charge
$
Total
678,498,133
«
if
6,354,517
if
Mar.
$
Deposits
MANUFACTURERS
If
6,592,913
if
NEW
Dec. 31, *53
'54
if
3950.
115,012,181
195,780,557
BROTHERS
BROWN
742.993,429
Undivid.
quarter
175,814,093
196,776,121
discounts
&
737,011,202
&
the
now
elected
was
Director
a
Trust
welcome
to
into
F.
5
Undivided profits—
se¬
stnd Vice-President and Cashier in
-
Loans
YORK
2.951,737,904 2,972,598,720
2,503,133,745 2,520,952,092
—
and
President.
April
104,502,910
683,749.521
Govt,
S.
curity
hand
on
club' which
Reconstruction
Louis, Missouri. He succeeds Gale
of
security
holdgs.
banks
from
U.
were
Vorndran
if
holdings
due
and
year
-
if
Cravens, former ad¬
Corporation,
President
Exec¬
1947.
credit
$
Cash
Finance
Bank
146,621,646
U. S. Govt,
6,054,557
NEW
OF
Mar. 31,
Hank, which he entered in 1919
following service in the U.
S.
World
CO.
TRUST
GUARANTY
tias been with the Chase National
in
11,789,641
25
of the
if
R.
Director in
a
ministrator of the
54
if
if
Kenton
members, 18 of whom are retired.
if
iired March 31.
Havy
69,605,745
12,020,336
holdings
Loans
who
Vice-President,
34,728,092
74,991.014
9,508.341
if
,
century
from
due
banks
34,404,578
banks
U. S. Govt, security
Lincoln's
of
1926,
Committee in
Mercantile
Erwin
Mr.
,
in
Chairman
and
utive
tendered
tution.
club,
1934
421,792,312 458,719.376
Cash and
from
due
$
a
President
461,259,136 500,385,658
resources
Deposits
98.914,696
107,220,577
.
Cash and
McKittrick,
H.
Thomas
ceeds
144,156,396 136.091,352
resources
Deposits
Ebbott, Presi¬
Mr. Bell suc¬
Percy J.
announced.
Canada,
dent,
Total
Bank
officers and trustees on
6th, in recognition of 25
of service with that insti¬
President
Dec. 31/53
31/54
S
Total
the
YORK
NEW
Mar.
Dec. 31,*53
$
Mar. 31,'54
in
by
and
TRUST
MIDLAND
presented
was
inscribed gold watch at
an
years
^
OF
COMPANY
YORK
NEW
MARINE
THE
COMPANY,
CITY BANK FARMERS TRUST
Vice-President
.and Cashier of the Chase National
Bank, New York, has been placed
Kenneth C. Bell,
Y.,
N.
luncheon
April
holdings
Loans
with
153,737,410
119,560,369
U. S. Govt, security
CAPITALIZATIONS
Brooklyn,
him
banks
NEW BRANCHES
NEW OFFICERS, ETC.
|
George Vorndran, an employee
the
Lincoln
Savings
Bank,
of
Thursday, April 8,1954
1.
as¬
Bank
He'was elected Vice-
With
Marache, Dofflemyre
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.
—
Stuart
Peters has become affiliated with
Marache, Dofflemyre & Co., 63£
South Spring Street, members of >
the Los Angeles Stock Exchange..
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1535)
I
Mexican
IBA to Promote Sales of U. S. Treasury H
T. Jerrold
Bryce, of Clark, Dodge & Co., President of the
Investment
Bankers
Association
of
America,
reaching
T. Jerrold Bryce,
April 1 by
on
distribution
Clark, Dodge &
bonds
Co., New York, President of the
Investment Bankers Association of
the
nation
sales
savings
material
descriptive
recommendation
and
series
of
wide
the
H
ment
promo¬
of
course
advice."
givfng financial
1,800 invest¬
offices across the
More
than
banking
tion campaign
country
to
Association's promotional effort.
Sales of the U. S. series H sav¬
help
U.
S.
the
Treas¬
reach
ury
larger
for
series
H
in g s
its
sav¬
be
e
launched
the
January and February of this year
$161 Vz million worth, an increase
of 110%
over
the corresponding
period for 1953.
bonds
has
n
b y
Associa¬
Mr.
tion.
Bryce
made
the
nouncement at
dinner meeting,
sponsored by the Central States
Group of the IBA March 31 and
April 1. He pledged the full sup¬
port of the IBA members in
attractiveness of the series H
car¬
rying the savings bond message to
every portion of the investor mar¬
ket throughout the country.
ings
Local savings bonds committees
and
national
the
Treasury
its
its
series
campaign.
promotion will
"local
stated,
tising
vidual
firm
that
basis
series
H
in
fea¬
num
that
States
market.
remained
important
the
Table
returns
Foreign
Credit
cause
on
ports,
in the
we
the
embassies
the world
and
American
Com¬
New
York, who
during the last
year
made
several
trips
Mexico,
are
effect)
in
sit¬
i
m
Harvey L. Schwamm
-
enthusiasm forces
jne to say a very few words about
the general economic situation in
proving.
"My
After
decrease in
a
and
in
eco¬
if held to
interest
per
deliberate
contraction
instituted
spending
ket,
the
add,
in
vide
equal
oj Condition
is
big
a
one—we
this
.
.
Mortgages
which
one
87,025,812.75
.
.
.
.
.
4,511,700.00
...
.
28,225,200.70
Loans, Bills Purchased and Bankers' Acceptances
Mortgages
of
.
.
.
.
.
.
».
.
.
.
.
.
■...*■ 857,058,974.02
16,240,261.66
.
15,262,028.45
Liability for Acceptances
a
.
.
.
W
.
13,519,174,77
8,066,023.37
.
.
$2,827,499,201.91
'
Ll.llllLITIES
Capital
.
.
.
,
Surplus
.
,
.
,
.
.
.
.
.
.
$ 50,390,000.00
.
100,000,000.00
.......
Undivided Profits
31,755,863.49,
.
Reserves for Taxes, Unearned Discount, Interest, etc.
ever-in¬
said
be
can
collection
in
all
towards
"For the specific interest of the
Dividend
.
$
182,145,863.49
19,770,545.90
\
.
.
Payable April 15, 1954
1,889,625.00
Outstanding Acceptances
Liability
.
as
Endorser
Other Liabilities
*
.
.
13,994,065.42
Acceptances and Foreign Bills
on
.
*
.
.
.
.
.
.
.
., <
.
.
10,624,461.93
2,558,469.38
.
Deposits
Latin
one
America
slowness
$2,827,499,201.91
United States
secure
Government and Other Securities carried
public funds und trust deposits and for other
that the dollar
to be found
surely
the western
the world.
and
one
of the
As
every
one
present
un¬
doubtedly knows, the buying rate
the
dollar represents
slight premium
8.65.
of
from
Spring 1953,
over
official
the
The gold and
the
country,
the
are
all-time
dollar
while
highs of
still at levels
a
ap¬
generally
suffered
in
best
hemisphere, if not in
There is absolutely no
was
that
.
from
is
Mail
the
Steamship Co.
subject
terms is
tant
and
future
one
is
of
lou
credit
which is most impor¬
exports to the
kenneth
*
k. (.'randall
i
Chairman
Trust Committee
johnston
f.
harold c.
New
maclellan
President, United Biscuit
President, Home Insurance Co.
john t. madden
l. a. van bom el
Chairman, National Dairy
Savings Bank
Products Corporation
JOHN P. MAGUIRF.
flanican
henry c. von elm
President, John P. Maguire & Co., Inc.
President
john m. fr anklin
,
geokge
v.
Mclaughlin
richard
York City
harold v. smith
President, Emigrant Industrial
Chairman, Dana Corporation
horace c.
Piesident, Scranton & Lehigh Coal Co.
Company of America
Company
charles a. dana
How-
closely related to the
outlook for
to
william g. rare
Simpson Tltaclter & Bartlett
President, George A. Fuller
the
areas.
export
pledged
Director, Cl/iett Peahody & Co., Inc.
l. johnston
oswald l.
alvin g. brush
Honorary Chairman
ceorge g. walker
President, United States
I ice Chairman
President
Lines Company
Government, with assistance from
our
own
government in specific
locations, has completed irrigation
projects which will much improve
the water situation and thereby,
of course, the general economic
"The
are
permitted by law.
ceorge j. patterson
Director, Phillips Petroleum Company
Director, New York and Cuba
ever, much has been done to com¬
bat this situation.
The Mexican
situation of the affected
or
c.-1l palmer
President, Gerli & Co., Inc.
john
edgar s. bloom
concen¬
the drought.
required
Clyde Estates
/'resident, C. R. Black, Jr. Corporation
trated in agricultural areas which
mar¬
control of exchange and the peso
has maintained
its
strength all
8.60 to
slowness
exchange situation
in the Mexican
disclose
purposes us
paollno gerli
clinton k. black, jk.
tendency
will
$158,260.638.52
john oemmeel, jr.
bf.inecke
Chairman, The Sperry & Hutchinson Co,
in
During the
a
at
Ill RECTORS
edwin j.
of the
following
2,596.516,170.79
.
was
experience
statistics
say
competitive
166,267,464.47
.
Tributough Biidge and Tunnel Authority
Electric Bond and Share Co.
Head Office: 55 Broad Street, New York
City
MOKE THAN IOO IIANKIVG OFFICES IX GREATER NEW YORK
■
v
m
Member Federal Deposit Insurance
Corporation
for
the if"
competitive-
818,864,060.40
...
Chairman, American Home
exporter, I can unequivocally
are
means
312,458,501.32
Banking Houses
those
Mexico's
public generally improving.
the early .past year there was
the increase.
on
market
credit terms."
$
State, Municipal and Public Securities
Oilier Securities
peso.
to
Mexico continues to be
administra¬
that condi¬
March 31, 1954.
—
long-
good and pro¬
excellent
an
—and
.
Accrued Interest and Oilier Resources
of
at
present
are
American exporters if—and
the
Stock of Federal Reserve Bank
also strong points
favor of Mexico's currency.
best
can say
COMPANY
U. S. Government Insured F. II. A.
.
Products Corporation
down
may
sev¬
were
r
closing I
U. S. Government Securities
ity throughout the country. How¬
ever, a close examination of the
reserves
I
of
the
RESOURCES
general decline in business activ¬
rate of
if,
and
rediscount
tions in Mexico
we are to maintain
position in the Mexican marA
Cash and Due from Banks
tivity is again
at
"In
enough that if
Brazil,
tion's term in office, business ac¬
year.
to
facturers.
firms who
selling to Mexico on open
account terms. I can't repeat often
our
States be¬
Banks
term export paper of their manu¬
brought
was
are now
Condensed Statement
an¬
maturity.
continue
"The
activity,
is
it
out that there are many
successful—are
reflecting a gen¬
eral decline in world commodity
prices and accentuated by the
ket
association,
your
Central
European governments
willing
situation.
TRUST
ports, while lead, copper and zinc
account for approximately 25%.
Moreover, the continual increase
in productivity, and the arrest of
inflation, which has been the task
of
the
present administration—
uation
of
eral
the
checks.
was
the increase
part
cause
represents about 10% of total ex¬
exchange
•
lost to the United
was
MANUFACTURERS
(2) the stiffening
of nietapprices and the rapid rise
of cbnde prices will substantially
increase export revenues as coffee
and the dollar
nomic
with
six-year terms with no money
I must say, however, that
States exporters are be¬
ginning to take cognizance of this
At a recent meeting of
pro¬
Steps have al¬
been taken to sign new
trade pacts (in addition to those
is
that
Mexico.
over
ready
already
be¬
European firm was selling
a
United
selling to Mexico.
cottqr* market;
ac¬
tivity in
country
legations all
carrying out a
lost
down.
Mexican
advertising their exports
and are also handling offers of
foreign producers interested in
creasing importance in the world
re¬
business
on
will
that
ported
position
our
gram
future, it seems safe
to say that there is every indica¬
tion .of continued strength for the
peso.
The exchange availability
picture has some very encourag¬
ing aspects: (1) the improvement
of irrigation facilities will greatly
increase agricultural yields and
pany,
to
losing
are
Mexican market.
was
manufacturers
"As to the
f
o
American
to
the necessary steps, includ¬
ing appropriate legislation if re¬
quired, to make the long-tern®
paper arising out of export trans¬
actions
readily
rediscountable.
The deal of which I spoke abovo
take
are
being offered.
involved in a multi-
was
million dollar deal which
and
greatest part of that country's ex¬
year ago.
Schwamm,
President
most
goods
which
My bank
gov¬
competitors.
What I specifically
suggest is that the government
credit
1954
bond
interest
3%
proximately
Interchange Bureau in New York
City on March 16, Harvey L.
Trust
Mexico's
supplier of
Customers'
of
is
other
many
have made possible the more lib¬
eral credit terms of our foreign
over
the
role in this field
a
which
its
of
indication of continued strength for the
Round
it
that the United States bought the
Harvey L. Schwamm, President of American Trust Company of
New York, tells Foreign Credit Interchange Bureau dollar
exchange situation is best in Western Hemisphere and there
Luncheon
While
be
to
seems
answer
the
ernments have assumed and whick
world. The figures show the
steady inroad of European sellers
during 1953 the United
Activity Increasing in Mexico
the
all
terms
true
,
at
from
the Mexican
sav¬
its
savings
semi-annual
ury's series H savings bonds; wide
Speaking
delegations
that
assume
role
would like to
government
I
respect,
should
—a
into the Mexican market and the
Like the series E bond, it matures
in nine years and eight months,
and
is every
of
the
pre¬
are
lobbies
pared to give more liberal credit
terms they will lose a share of
assist
can
realize
to
Instead
ture; the advantages of the Treas¬
Business
exporters
trade
accruing inter¬
est, however, interest is returned
adver¬
will
wfe
level
E.
Group and indi¬
a
States
the
this
recommend
Mexico City's leading hotels have
been
the
scene
of
meetings of
the companion piece to the series
H
newspaper
both
on
of
letters
In
coun¬
objectives."
The
savings
"Each campaign
include," Bryce
own
confirmed
bond and the necessity for
wide-spread sale.
We hope
sales
dent said, and each group will de¬
bond
to
that through our efforts on a local
have been appointed in 17 groups
of the Association, the IBA Presi¬
velop
that the
Switzerland,
tries., Moreover,
open
series
an¬
held in his honor
at the Blackstone Hotel, Chicago,
and scheduled as a part of the two
day
18th
Annual
Conference
a
Bryce emphasized
Republic,
Yugoslavia and the Benelux
market, ranging from
vigorous and wide-spread sale of
Canada, Costa Rica, Czechoslo¬ world market in general, we must
H savings bond "dovetails
into the Treasury's sound money vakia, Chile, El Salvador, France, be prepared to change our attitude
policy designed to establish rela¬ Italy, Israel, the Netherlands, Do¬ towards our export credit terms.
tive stability, to the American dol¬
lar and distribute widely our na¬
tional debt. If the Treasury is to
realize
its savings
bonds quota
this year of close to $5V2 billion,
then every effort must be made to
call the people's attention to the
Mr. Bryce
T. Jerrold
the
ings bonds have already skyrock¬
eted over last year. American cit¬
izens
have
purchased
during
a
audi¬
ence
in
participating
are
minican
to this
United
bonds to clients and other citizens
in
America, that
a
H
present,'all
However, it is my conten¬
tion, and I believe the evidence
will bear me out, that unless the
Treasury in
series
of
At
credit.
larger audience for its Series H Savings Bonds.
a
announced
was
market.
credit terms will be found in sales
account
a
announces
nation-wide campaign of the Association to aid
It
Bonds
5T
58
The Commercial and Financial Chronicle;..
(1586)
margins and two maintained the same margin. It is interesting to
observe that virtually all of the favorable comparisons were
achieved by the Western and Southern carriers.
The exceptions,
representing the East, were Chicago & Eastern Illinois and West¬
ern Maryland.
and, in
have
Continued
transportation costs
for, the individ¬
ual railroads, and presented a tabulation of transportation ratios
in recent years for 45 railroads.
While transportation ratios are
very important they are by no means the only cost factor bearing
on earnings.
Maintenance charges are also important, even though
it is true that they may be controlled more readily, at least tempo¬
rarily, in line with management whim.
There are general office
expenses and the costs of soliciting traffic.
There are property
taxes that in many instances are fixed regardless of the level of
traffic or earnings.
Finally, there are debits or credits for hire
Last week
we
3
page
discussed the importance of
and GI's.
"If
;
profit
mar¬
gin of the individual property.
This is the percent of gross car¬
ried through to net operating income before Federal income taxes.
In the tabulation below we show for the Class I carriers as a
(including purchases, sales,
exchanges, replacement of ma¬
turing securities, and letting ma¬
turities run off without replace¬
ment), as may be necessary, in the
light of current and prospective
and the
economic conditions and the gen¬
eral credit situation of the coun¬
ters
view to exercising re¬
upon
inflationary devel¬
opments, to correcting a disor¬
I have
try, with
a
derly situation in the government
securities market, to relating the
supply of funds in the market to
ness,
non-operating income in the form of oil operations, dividends on
tration of the account";
the needs
stocks held, etc. Such income is not reflected in the profit margin.
This tabulation demonstrates dramatically why it is impossible
consider
railroads
as
presenting
overall
single
a
investment
problem.
It takes little imagination to realize that a road con¬
sistently realizing a profit margin of 25% is far better equipped
to withstand
decline in traffic
high'er
absorb
than is a
road that has been able to carry only 5% of its gross through.
Obviously it is not feasible to take the performance in any single
year as a criterion of the relative status of any individual prop¬
erty.
Operations in any specific year may be distorted by ex¬
traordinary temporary factors such as strikes, over or under main¬
tenance, weather, etc.
What is significant is the long-term per¬
a
or
wages
of
and
commerce
busi¬
and to the practical adminis¬
June
portfolio officer is able to
good night's rest because
a
now
the black.
.A-'".■-v
I
which
from
excerpts
received
have
I
let¬
officers with whom
top portfolio
daily contacts.
From
of
one
large savings
the
banks in Buffalo—
"Our investment
policy for 1954
the
in
to
market
and
the
needs
of
business,
(b) to
tendencies
deflationary
total assets.
The amount of mort¬
replace
of
yearly
our
around
mil¬
$20
lion
on
present mortgages out¬
standing, together with the above
million, will
$45 million in new
some
mortgages during the year.
estimated
our
should
will
there
Since
increase
deposit
around
run
be
million,
$20
deficit
a
funds
of
for
Western Maryland
1950
1952
1951
'%'
1953
%
%
%
31.5
40.8
30.2
38.6
29.8
35.2
33.1
31.6
gressive supplying of reserves to
the market), (c) to correcting a
situation
in the gov¬
market, and
(d) to the practical administra¬
tion of the account";
■■■
disorderly
Denver & Rio Grande West-,
30.5
49.8
17.4
21.7
26.2
25.3
27.2
Norfolk & Western.—
44.0
31.4
31.4
27.7
27.2
St. Louis
26.9
33.0
30.2
36.1
26.9
City Southern——
Southern Railway
24.1
30.7
29.9
30.4
25.8
18.5
23.3
24.8
actions in
Western
19.1
28.3
23.3
24.8
following directive to the Execu¬
20.3
24.1
tive
25.5
24.0
23.8
23.1
Virginian
Southwestern
Kansas
Pacific
.
27.7
Louisville & Nashville
32.1
Chesapeake & Ohio
Atchison, Topeka & Santa Fe
35.8
Texas & Pacific
25.0
Seaboard
Air
Line.
•
29.6
■
29.2
N. Y., Chicago & St. Louis-
21.7
y
23.1
■
19.8
28.6
23.7
•
25.4
22.9
-
24.2
27.0
-
18.9
24.0
22.0
21.5
20.8
23.9
21.8
15.6
19.5
18.7
20.5
21.1
17.5
15.3
12.3
15.9
19.3
Chicago Great Western
Chicago, Rock Isl. & Pac.—
18.2
16.6
13.1
18.5
19.3
Illinois
19.0
19.5
15.5
18.4
19.1
Delaware & Hudson.
25.8
17.6
17.0
18.9
18.9
Chic., Burlington & Quincy.
Gulf, Mobile & Ohio
18.7
25.2
20.5 "
14.8
19.3
17.6
St.
Central
Louis-San
Francisco
"
20.2
18.7
.19.2
.
18.4
securities
ernment
,
Sept. 24, 1953
"(1) Authority to Effect Trans¬
System Account."
Committee
".
.
The
approved:
was
prospective economic
.
uation
view
sit¬
with a
country,
(a) to relating the supply of
in. the market
funds
of
the
of
to the needs
and
business, (b) to
avoiding deflationary tendencies,
(c) to correcting a disorderly sit¬
commerce
uation
in
the
government
19.9
20.8
17.0
27.2
19.4
16.6
25.3
15.9
16.^
18.1
17.1
19.8
18.0
14.9
17.3
17.1
11.4
18.6
14.7'
18.1
15.8
actions in
21.9
17.3
14.5
16.0
15.4
following directive to the Execu-
Wabash
—
Missouri-Kansas-Texas
——
Class I Weighted Average—
Lehigh Valley
Delaware, Lackawanna & W.
Union
Pacific
19.9
19.1
13.7
15.3
16.6
14.4
"18:5
13.6
12.0
15.7
14.3
14.9
New
Central
of
&
17.8
VCA
14.1
15.2
14.0
15.1"
14.0
14.0
13.4
16.6
13.9
23.1
18.5
15.6
16.9
13 5
21.9
15.2
13.1
12.8
12.2
11.0
12.6
11 9
19.9
Ohio
Georgia
14.3
21.6
Pacific
Baltimore
12.6
-16.0
25.1
—
Orleans, Tex. & Mex._
Northern
16.1-
19.8716.7
Erie
Pacific
20.0
*20.9
Chicago & Eastern Illinois—
Southern
18.2
'17.9
6.5
5.1
9.6
11 2
*
,
Missouri Pacific
21.5
18.2
11.3
14.7
9.9
Central RR. of New Jersey__
11.7
10.9
7.0
8 6
8 3
Pennsylvania
20.0
New
York
—
Central
*
7.6
6.6
8.2
8.2
6.9
14.7
5.4
6 8
8 1
Dec.
15, 1953
"(1) Authority to Effect Trans¬
System Account."
time Committee
".
The
approved:
was
in
,
the
market
the
to
and
of
needs
business,
(b) j to
promoting growth and stability; in
commerce
the
by actively main¬
condition of ease in the
economy
taining
a
market, (c) to correcting a
disorderly situation in the govern¬
money
ment
to
securities
market,
and
(d)
practical administration of
the
Boston & Maine—
N. Y., New Haven & Hartf'd.
19.3
11.3
7.5
8.3
7*3
16.0
10.4
6.5
7 2
6 5
Chic., Milw., St. Paul & Pac.
20.2
13.1
8.5
8 6
61
Atlantic
20.5
12.7
11.8
10.8
6J)
change
17.4
6.5
3.9
4.3
4 1
decide.
11.8
10.0
7.6
6^2
3.5
Coast
Line
—
Chicago & North Western
Minn., St. Paul & S.S. Marie
Pe industry
as a whole last year showed
a
profit margin of
15.4%, a slight deterioration from a year earlier.
Individual per¬
formances ranged from a high of 33.1% for
Western Maryland to a
low of 3.5% for
Minneapolis, St. Paul & S. S. Marie.
Despite the
high level of business that characterized
1953
as
a
whole, it will
be noted that ten of the roads in
the list failed to carry as much
10% of gross through net
operating income before Federal in¬
come taxes.
There were, on the other end of the
scale, six roads
as
With profit margins above 25%.
were
were
able
There
were
12
companies
that
to
increase their profit margins last
year, and ithree
unchanged. Profit margins of Atlantic Coast Line and Mis¬
souri Pacific
excess
were
off
maintenance
particularly sharply but it is indicated that
was an
In comparing the
it will be noted that
11
f
important factor in both instances.
showing last
year
roads were
with the prewar year 1941
able to
increase their profit
the
account;
Whether
I
it
group
of
in
is
us
is
for
was
a
to
you
quite obvious and
all that bankers
favor of easy
reminded of the
am
government
our
the
as
in
are
I
money.
rities
there
not
policy
secu¬
latter
part of May
last year when the 3J/4S were
selling at 98 V2 and the Victory
and Bank 2V2S were trading at
893As.
The moaning and groan¬
of
ing of the portfolio officers could
be
heard
Mo.
make
to
from
here
to
Sedalia,
Some of the smaller institu¬
tions
were
in
They
were
faced with
tial red
account.
serious
difficulties.
a
substan¬
figure in their investment
Believe
atmosphere
is
me,
entirely
today
and
of
will continue
we
monthly
regular
chases of
on
commons
pur¬
dollar
a
av¬
the
different
mortgage
want.
We
corporate
for
if
in
municipal holdings will
likely be reduced slightly
inasmuch
able.
we are
as
As
no
holdings
increase more emphasis will be
placed on our cash and short-term
governments."
A
Rochester
savings
bank
says—
"In
to
answer
your
buying
3%
on
a
we
best
had
is
basis
to
look
yield
a
of
will
we
government security
a
better rate than the
presently
longest government bond. We will
sell
corporates
and buy govern¬
advantageous spreads."
ments at
This is what
up-state savings
an
banker says—
"We are going to maintain ap¬
proximately our present percent¬
age in mortgages which is 62% of
invested
our
assets.
We
are
go¬
ing to buy $1,000,000 in common
and $1 million in preferred stocks
during the
A
1954.
year
modest
a
porates
We will
of
amount
ac¬
cor¬
and
long-term ""govern¬
during the year."
Syracuse savings bank offers
the following—
"We plan to put $13,400,000 into
mortgages for the year 1954. $6,100,000 of this will be new money.
(We have written mortgage com¬
March, 1955.) This
mitments until
will leave
000
to
with less than $200,-
us
put into
which
I
ments
in
the bond market
believe
will
be
commit¬
tax-exempts.
We
will
also shift three to three and
one-
half
million
into
of
corporate
tax-exempts
The
bank
longer tax¬
mortgage
our
investment, that
governments
offered
i
maxi¬
do not like
bonds
the
the
We have been told
a
"Our
most
attained
bonds
during
the
year."
tional Investors Mutual Fund.
recent in¬
following is from
savings
a
in Troy—
"A good deal of our money will
into
go
(we
conventional
getting
are
and in
mortgages
4M>%
generally
instances 5%)—with
the balance of our money we will
some
probably buy U. S. Treasury long
bonds. This could run to $2 mil¬
lion."
One of New York City's largest
quiry, I shall attempt to project as
of the persent time our ideas re¬
garding our investible funds for
savings banks
the current year.
gram
"Initially,
our
we
it
shall make
tion inasmuch
1954
government" posi¬
as we now
that
assurance
of
,(
not; Appear
any change in
does
short-term
have the
December
our
not
2s
"New
government financing in¬
volving rights on any issue which
we presently own will be consid¬
ered
individually
they
are
"It
is
when
and
our
have
we
of
our
further clar¬
fiscal year, it is not
we
will purchase
present
expected
a
taxable status for
the
token,
same
utilities and rails will not hold out
appeal to
any
"High
even
us.
grade
-
preferred
stocks,
without the 85% tax exemp¬
^pntinue to increase our hold¬
ings at appropriate tipies and at
desirable price levels.
"It
is
maintain
between
the
bank's
our
65
objective
70%
to
portfolio
of deposits
mortgage
and
our
pro¬
ports
Brooklyn
as
re¬
follows—
"We will
year
will
bank
savings
we
1954
use
as
our
for the
money
follows:
"(1) 75% in mortgages.
"(2) Preferred stocks.
"(3) Municipals.
"(4) Some corporates.
"There is a very strong
possi¬
bility that mortgages will not be
as available as
they have been in
the past and if that is the
will
in
temporarily put
case
our
government securities."
I would
with
President
*
•»
like to mention
conversation
cently
we
money
of
which
I
to you
had re¬
Joseph
Kaiser, the
Williamsburgh
the
Savings Bank in Brooklyn. I asked
Mr. Kaiser his opinion on the pos¬
sibility of premium payments for
tion, will continue to be attractive
to us, and it is expected that we
will
A
a
with in¬
terest rates being lowered as is
the present indication, long-term
"By
in
of
surplus money
buy corporate bonds."
that
tax exempt securities.
any
says—
proceed
—with the
if
not
will
which includes buying $100,common stock
per month.
We will buy what mortgages we
can get (we prefer
conventionals)
000
offered.
anticipated that we
will sell governments for mort¬
gage financing.
"Until
"We
be
to
called, and
the present
privilege of main¬
taining 30-day money at the Sav¬
ings Banks Trust Company at 2%.
are
ification
think
prices
."
.
or
in
apparent to
a
.
sale
corporate
our
to
balance
on
that
prospective economic con¬
ditions and the general credit sit¬
uation of the country, with a view
(a) to relating the supply of funds
.
of
part
provide funds for these
and
against
U.
S.
Treasury bonds when the respec¬
tive spreads are satisfactory.
"Our preferred stock portfolio
will probably remain unchanged
secu-
ritjyes market, and
(d)
to the
practical administration of the ac¬
count";
Reading
'17.1
bonds
the
contemplate
least
mortgages,
ditions and the general credit
Great Northern
'
"We
at
eraging basis through the Institu¬
con¬
mum
ment bonds
that of last year.
pres¬
United States—
have
mately $5 million securities.
in the
*
"We
quire
De¬
picture at the
of the largest savings
one
mortgage requirements, ne¬
cessitating the sale* of approxi¬
inflationary developments (which
future will require ag¬
From
at
to
Percent of Gross Carried to Net Operating Income Before
near
our
banks in the
be
our
present 62%
posit increase in January, and so
far in February, is running behind,
Taxes
of
would
account
a
time."
ent
65% of
require
prospective economic con¬
ditions and the general credit sit¬
uation of the .country, with a view
(a) to relating the supply of funds
.
.
of
sume
mortgage portfolio
its
mortgage
large percentage of
our normal
deposit decline.
"This is, as I see it, a brief re¬
tension of
amounts to about $25
".
care
2.71.
mentioned overall increase which
adopted the follow¬
directive to the Executive
take
is based primarily around the ex¬
from
our
the
million'mortgage
even
ing
Committee:
ab¬
deposit trend re¬
verse
itself, we believe that the
monthly amortization of our $911/2
we
without encouraging a renewal of
%
does not
our
"Should
from
Committee
avoiding
1941
demand
financing.
pleased to submit for your
am
consideration
amortization
System Accounts." The
in
his investment account is
PROFIT MARGINS
Federal Income
.
local
insured FHA's will be used to ab¬
gages needed to
11, 1953
"(1) Authority to Effect Trans¬
actions in
commerce
formance and the trend.
enjoy
straint
whole, and for the same 45 roads that were included in last week's
article, profit margins for the past four years and for the prewar
year 1941.
In this table the roads are listed in descending order
of their 1953 profit margins.
With respect to these profit margins
it should be borne in mind that many roads receive considerable
to
,
of and Demand for
Long-Teim Investment Funds
ury
in^
continuing increase in
deposits, out-of-town purchases on
The Supply
of the relative status of, and outlook
of equipment and for joint facility rents.
The sum total of all of these costs determines the
consideration
sorb the balance of
Of 45 Roads
as a measure
jrom
first
eluding conventional types, FHA
Net Operating Income
on
doing, local mortgages
so
our
sorb
Comparative Figures
Thursday, April 8, 1954
local FHA and VA mortgages and
1
am
pleased to be able to
comments.
proaching
be
"The
time
when
paid for
FHA
use
is fast
premiums
and VA
Already somq; banks
are
the
will
loans.
absorb¬
ing closing costs."
From
his
ap¬
Vice-President
,
of*a
Volume 179
Number 5314... The Commercial and Financial Chronicle
savings bank
in New York
City,
3%
the following—
long bond it will be attrac-
tive to
us."
'
(1587)
LETTER TO THE EDITOR;
"v'
4
•"
,
"Our*
deposits
of
quarter
$20
which
be
first
up
bank
since
December,
for the month
gram
of
says—
a
"We will put the major part of
our
1953.
substantial investment
a
Another very large pension fund
over
represents
increase in the assets of
10%
had
will
1954
million,
the
for
our
We
do not think
pro¬
3.14%.
was
My projec¬
In
tions indicate that the average in¬
vestment
yield
the
for
ments
about 3.35%.
stock
of
We have
investing
based
1954
program
is
which is
averaging
period.
over
a
stocks,
and 65% in mortgages.
These mortgages will consist pri¬
town
The
-
following
'
VAs,
and
out-of-
on
is from
rate
bonds
of
and
in
to
of the
panies
money
A
in
put
60%
of
estate
issues
new
to
supply
the demand for the last six months
One
loan
largest savings and
associations
in
New
York
our money
in mort¬
gages and if we have more funds
than
mortgages
available,
we
probably will buy some govern¬
securities."
One
of
the
largest
mutual
companies in
surance
New
in¬
York
State—
,
"Our
for the next several
go
into short and
money
months
will
medium
term
municipals and
common
and
governments
and
small amount in
a
preferred stocks. The
corporate bond market appears too
high to me."
-A
might
Teachers
large
very
companies in
a
of casualty
group
recent letter to
me
bond
Fund
"We will add
long-term
govern¬
common
stocks in that
order."
a
surance
medium
sized
the
company,
fire
in¬
following
information—
plan to increase our
/common
stock portfolio for the
year 1954. We may buy a modest
amount
of
$500,000
preferred
$1
to
stocks
million).
(say
Beyond
this any new money will go into
short and medium term govern¬
bonds
with
possibility of
municipal
a
modest commitments in
obligations."
Some excerpts from
managers
the
largest
of the
"(1)
M
a
j
State
purchase
any
(excluding
commitments
o r
governments
in
and
'policy
Present
purchasing
probably will invest
money in 1954 than in 1953.
"(2)
Funds
are
legal
1953.
:"(3) We will continue to buy
high-grade corporate bonds (both
public and private), and this will
be
the
ment
of
invest¬
our
program.
"(4)
•
backbone
We
do
of
State
the
of
New. York
in
vested
municipals,
and
expect
to
each
will
market conditions.
interest
be
in¬
The
pro¬
depend
on
It might be of
that the State
Fund totals (other than the State
t<?
Teachers
note
Retirement
Fund)
in
January, 1954, amounted to $669
million, which Was an increase of
$72 million from March of 1953.
I would like to stress again the
tremendous
impact ..of purchase
monies
and to
the
on
investment market
point out to
you
the grow¬
ing build-up of supply pressures
against
demand. " It
has
been
pointed out that there is a distinct
possibility of the reappearance of
premiums on guaranteed mort¬
gages.
I
reasons given
in changed
tary conditions.
not
expect life
iff the
tor
insurance
important fac¬
an
long-term
Treasury
this year.
market
Savings banks,
some savings and
associations, states, munici¬
palities and pension funds, will be
buyers
balance
on
of
long-term
only consequence of poor
monetary conditions in any coun¬
try
is
not
economic- progress,
although
painted
politically,
but historically it brought Fasc¬
ism
to
Germany,
Socialism to
England, and in Italy the progres¬
so
sion has been from Fascism before
the
last
more
to a progression
currently into more and
war,
Communism.
Members
direction
within
Republican
the Democratic party and
fraternity are all
expressing their approval of tax
some
the
tion
tax
same
structure.
generation has received the
heritage of American Constitu¬
tional government, and the effect
of mortgaging it to the hilt ($255
at
the
moment) and leaving the full
form
or
another.
an
announcement
by Thomas J.
Watson,
the
ment
so
to
that
hog,
national
of
our
we
sons
and
daughters,
the
live high off
can
only
can
debt
lead
inevitable
to
tional Government.
Is
of
better
owing
of this
or are we
deliberate
than sticking,
generation
welshers
pack
a
who
have
f
o
board.
Mr.
Courts,
who
is
a
member
of
the New York
Stock
Ex¬
change,
was
elected
a
Richard W. Courts
di¬
rector of IBM World Trade
pay¬
billion
financial
in
is
This
party,
the
unsound money, un¬
fiscal amortization
of
there
foreclosure of American Constitu¬
the
of
ac¬
Chairman
cut, but more
inflation and another step in the
less
The
n,
cording to
on
May 26,
He
and
a
is
savings banks de¬
posits and the additions to insur¬
ance
reserves
funds
of the
and to pension trust
will, ifi all probability, be
same magnitude in 1954 as
in 1953.
Chairman
of
the
It
is
my
considered
judgment
business activ¬
ity we should have a token offer¬
I ing of long-term governments in
the
next
Treasury financing.
This is
no
to
Co.; Treasurer and a Director of
Southern Mills, Inc., and a Direc¬
tor of Southern States Realty Co.,
Sea Island Co., Atlantic Co., Delta
Air Lines,
Inc., Southern Elec¬
trical
Corp., Atlantic Securities
Co. and Economy Auto Stores, IncC *
failed to "hold high the torch" of
as
these
other
pressure
and
Fortune's
Now Emerson Cook Co.
good government?
'
RICHARD
SPITZ
PALM
Rocks,
name
BEACH, Fla.—The firm
Emco, Inc., 234 South
Road, has been changed
of
groups, viz., benefits from tax cut¬
Biddeford, Maine,
County
ting,
March
to Emerson Cook Company.
without
advocating
a
plan
29,
1954.
DIRECTORS
J. P. MORGAN & CO.
in
GEORGE
;
"-f"!
Chairman
Condensed Statement of Condition March 31, 1954
HENRY C. ALEXANDER
President
ASSETS
ARTHUR M. ANDERSON
Vice-Chairman
Cash
President State Street
Corporation
BERNARD S. CARTER
President Morgan & Cie.
*
CHARLES S. CHESTON
JOHNL. COLLYER
Chairman and President
The B. F. Goodrich
work
at
your
money
the " prevailing
with
rates
your program
of
Government
Securities
67,207,583.78
Municipal Bonds and Notes
Other Bonds and Securities
of Morgan
Grenfell
8p
1,650,000.00
(including Shares
Co.
Limited
and
Cie. Incorporated)
Morgan
5,365,067.53
Loans and Bills Purchased
299,659,975.17
Accrued Interest, Accounts Receivable, etc...
3,241,380.62
Banking House
3,000,000.00
.".
Liability of Customers
Letters
on
of Credit and Acceptances
Company
11,789,954.91
V
$775218,016.24
H. P. DAVISON
Senior Vice-President
LIABILITIES
RICHARD R. DEUPREE
Company
Deposits: U. S. Government
i
$ 41,531,858.52
Other......
619,996,794.36
Official Checks Outstanding
26,626,251.84
$688,154,904.72
Payable, Reserve for Taxes, etc....
5,488j841.72
All
CHARLES D. DICKEY
Chairman Executive Committee
I
Chairman Morgan & Cie.
Incorporated
DEVEREUX C. JOSEPHS
Chairman New York Life
Insurance Company
Accounts
Acceptances Outstanding and Letters of
Credit
Issued
11,925,138.91
—
Capital—250,000 Shares
25,000,000.00
Surplus
30,000,000.00
Undivided
Profits.
14,649,130.89
$775218,016.24
Senior Vice-President
R. C. LEFFING WELL
Vice-Chairman
United
States
Government
in the above statement
to secure
are
public monies
as
securities carried at $52,796,617.66
pledged to qualify for fiduciary pozvers,
required by law, and for other purposes.
President Continental Oil
Company
Member Federal Reserve
GUSTAV METZMAN
Member Federal
System
Deposit Insurance Corporation
JUNIUS S. MORGAN
Vice-President
Chairman General Motors
Witter
217,957,979.17
......
ALFRED P. SLOAN, JR.
Dean Witter Adds to Staff
Dean
$165,346,075.06
from Banks
Stock of the Federal Reserve Bank
PAUL C. CABOT
Incorporated '
Hand and Due
State and
Vice-President
Investment
on
United States
I. C. R. ATKIN
master¬
any
minding tactics. Put
to
YORK
NEW
/
L. F. McCOLLUM
time for portfolio of¬
engage
&
Co.,
14
Wall
Corporation
JAMES L.
MORGAN $
CIE. INCORPORATED
14, Place Vendome, Paris, France
THOMSON
Finance Committee
Street, New York City, members
announce
that
Alfred
Exchange,
J.j^ian-
partment.
board
Director of Atlantic Realty
THOMAS S. LAMONT
that regardless of
Corp.
1952.
N. D. JAY
year.
in
Increase
be
a
mone¬
"
Chairman The Procter & Gamble
the firm in its municipal bond de¬
offers
the
tax
no
IU\
do
-
Treasury
of
one
There is
,
chetti has become associated with
the
and
Corpo¬
o
INCORPORATED
buyers.
If
progress"
eco¬
reduce the national debt each year,
and over a period of years. s
t i
in
sellers of governments on balance
this year — we might be modest
"(5)
nomic
continued
govern¬
mortgages.
of
portion
will
of the New York Stock
not
Trade
bring within our current
structure a plan to fiscally
of
bonds.
dollar averaging.
in
"forecasts
paper,
jurisdic¬
Comptroller of the
in
did
L. Babson, in
18, 1954 issue of your
a
World
the
under
and proceed
we
committee
IBM
into
also
to
tax
I note Mr. David
the March
consists prpimarily
FHA
mortgages
We will in all probability
put more money in common stocks
1954 than
condi¬
both in and out of the State.
ficers
We
money
progression
a
Jr.,
member of the
a
New York.
pension
in the world—
funds
more
of
one
and
men are not
only deluding
themselves, but the press is also freedom
presenting one side of the situa¬
the
investment
or
Treasurys this
"We do not
ment
as
loan
From
Chronicle:
These
that
can
companies to be
ments, Canadians, municipals, pre¬
ferred and
Teachers
which does not
jurisdiction of the
add
says—
r
approximately
State
stocks), which is legal investment
for savings banks in the State of
ments
"We hope that we are going to
ment
average
retirement
1953—236 million
tion
the
place most of
Editor, Commercial and Financial
more
to
Fund,
the
in
The
under the
The
State—
4
amounts
.
I
year."
of
that
increase
Jan. 1954—262 million
is already
money
1954. I do not think that there will
of this
indicated
Pension
.
offers this—
our
enough
com¬
The latest Annual Report of the
and
committed (private deals). We are
all set for the first six months of
be
short-term
Market conditions will be the de¬
of
private corporate
in mortgages—the
real
company
"50%
in
1952—211 million
large out of town life insur¬
ance
invested
Comptroller, increased in size
policy
loans.
The new money flow in
1954 is already 95% committed."
:
York
obligations for their sinking funds.
come
com¬
Contends
inflation
more
ra
cuts
will
deals and 35%
in
New
un¬
follows:
we
balance
be
$60 million.
extent
some
big insurance
think
our
of
I
approximately $250
year
in long-term
government and municipal obli¬
gations. An excess of $30 million
funds
says—
"I
City
sources
this
normal
bonds."
bring
Courts,
executive
Communism.
1954,
$1,450,000,-
invest
York
we
will
tions
June,
Comptroller of the State of New
.
money
our
revenue
One
the
million
small
a
mortgages, possibly the balance
will go into private deals, corpo¬
municipal
by
mitments.
company—
50%
put
that
termining factor governing
"It looks at the moment that
will
estimated
will
properties."
life insurance
June 30, 1953, the city had
assets of $1,290,000,000.
It
has been elected
on
will
long-term govern¬
in other bonds and
marily of FHAs and
of them will be
plan to amortize the national debt.
Winn
partner of Courts & Company, in¬
vestment bankers, of Atlanta, Ga.,
Richard Spitz says, instead of tax cuts, tax structure should
equity
Annual
derstand
follows: 25% in
75%
into
go
000. From unofficial
investment program for
the year 1954 will be divided as
7V2%
Provision for Debt Redemption
-
this figure will reach
; "Our
ments,
the
total
common
dollar
on
seven-year
that
will be
a
I
Report of the
City of New York it was stated
commit¬
our
year
will
commons."
IBM World Trade Cp.
Richard
we
monies
our
R. W. Courts, Jr. on
'
t
Condemns Tax Cuts in Absence of
will buy govern¬
Some small percentage of
ments.
January,
and the average return on our in¬
vestments
in corporate bonds.
money
'
"
—.
59
Hartford Fire Insurance Co.
JOHN S. ZINSSER
Vice-Chairman Merck & Co., Inc.
MORGAN
GRENFELL
$ CO. LIMITED
23, Great Winchester Street, London E. C. 2, England
50
Continued
Our
Reporter on Governments
CHIPPENDALE, JR.
By JOHN T.
at
should
tion
principal buyers of the higher coupon longer-term Treas-
tion
jected
(8)
and
file
to be
though
particularly strong uptrend in the quotations,
of these securities.
It is reported that there have been enough
sellers around (mainly the smaller life insurance companies) to
satisfy the greater part of the demand which has come into the
ket specialists that the
coupon
Pension
be
getting
as
far
zation
I
Commercial
Acquiring 2V2S of 1967/72
banks,
it
though there is considerable in the
seems as
institutions,
way
provisions and the
Exchange Commission is based in
great
measure
financial
of
presentation
Financial
Data
mation
of
ress
its
issuer
of
1
Ripley's
Wall
was
also considered to be
rate
Presently the business pattern is not
five
as
six
or
good
that
parison
that
years
it
as
was
some
lowering of
a
and
ago,
the
at that time.
as
outlook
It is
on
favorable
for
as
ter
A
betterment
the basis of such
its
it
was
is
not
a
future.
neai
time
and
one
be used for
com¬
power.
be favorable to
also
The
effect
bond market.
Albert J.
Hettinger, Jr.,
the
boards
of
econo-
Group
meetings of stock¬
,
of
well
of
Street
and
our
present corpo¬
be
at
the
of
control.
which
of
outset
raises
all
dis¬
shareholders'
in
is
indifferent
His inertia
—
respects the exercise of voting
almost
everything
acknowledged fact. But
expects it to be otherwise.
and
no
are
No
an
one
one
terprise
believes
that
great
a
en¬
be operated by town
It never has been done
General
enough.
independent counselor
United
Pension
States
Steel
& '
to
the
Reinsurance
Corporation and North Star Re¬
insurance Corporation.
Mr. Hettinger is also a director
of Certain-teed Products Corpora¬
is
it
true
that
sequiously
agements.
name
upon
But
their
such
own
if rendered, will at all events
been
in
vest
by the Com¬
the
respect to
«
as
fair
warning in
are
mission
power to prescribe prin¬
ciples of accounting and classifi¬
cation
application produces
in the multiplicity
From my own
field, the law, I
mind Justice Holmes'
to your
remark:
not
"The
life
the
of
is
law
logic but experience."
Recognizing the fluid character
of
the
stuff
informed
ful
work
we
Commission
tries
to
with,
the
itself
only through
not
keep
care¬
discussions in passing on spe¬
cific
problems,
also
but
by
con¬
with
ferences
representatives of
accounting profession, both
the
with
controllers
with
and
inde¬
accounts.
of
pendent
accountants.
We
have
Commission, nevertheless, been taught the importance of
has
not,
generally
speaking, moving but not moving too fast.
adopted
rules which
prescribe We are inclined to heed the in¬
principles of accounting except in junction of the eighteenth century
the case of public utility holding
poet who said:
The
companies and service companies.
•
Rather,
the
Commission
to the standard of
ability of the accounting princi¬
ples followed in a particular re¬
port or registration statement in
determining whether or not such
report or statement should be ac¬
cepted without comment: The ba¬
sic concept is stated in Account¬
ing Series Release No. 4, April 25,
1938:
where financial state¬
cases
ments filed
tions
under
1933
or
Act
the
1934
cordance
regula¬
Securities
Securities
the
of
this Commission
with
to its rules and
pursuant
of
Act
Exchange
prepared
are
in
ac¬
with
accounting princi¬
there is no sub¬
stantial authoritative support, such
ples
for
which
statements
will
be pre¬
sumed to be
rate
misleading or inaccu¬
despite disclosures contained
the
in
ant
certificate
in
or
ments
of
footnotes
the
account¬
the'state¬
to
provided the matters in¬
are^ material.
In
cases
volved
there
where
opinion
is
of
difference
a
the Commission
between
the
and the registrant as to the proper
old
have
We
the
former
rule
there
is
if
such that
authoritative
substantial
support for the practices followed
by the registrant and the position
of the Commission has not previ¬
ously
been
regulations
expressed in rules,
or other official re¬
leases of the
on
On
zation
the
been
pulled
registrants,
Bulletin
ants.
by
adopted
of
amorti¬
the
the
of
42
of
the
Account¬
accepting in respect
are
reports statements of
of
cost
certificates
by
1953
Insti¬
Controllers
Institute
by
ways
counts which amortize the
of
a
treat¬
June,
Bulletin
by
We
1953
both
the
the
of
and
American
of
have
disclosure
matter
of emergency facilities, we
have
tute
raised
On
amortization.
we
permitting
five-year
ac¬
portion
properties covered
of necessity over
period as well as
statements of accounts which
de¬
preciate the cost of such facilities
over
the probable useful life of
facilities but give recognition
the
the
to
resulting reduction in in¬
the
close
period.
The
after
amortization
the
of
benefits
tax
come
transitional
stage of the thinking
this
exemplifies
process
are
discussions
problems
accelerated
the
in lieu of correction of the finan¬
involved
had
accounting
by
on
the points
last to lay the
aside."
accounting for stock options and
principles of accounting to be fol¬
lowed, disclosure will be accepted
cial statements themselves only
first by whom
is tried,
new
Nor yet the
ment.
;
"In
"Be not the
looks
general accept¬
subject
of
getting
the
accounting
an
principle generally accepted. The
registrants in filing statements on
either
basis
have
been
making
disclosures
adequate
followed
method
if
the
been
produced
method
alternative
had
followed.
have
We
Commission, includ¬
effect
the
which would have been
the
to
as
and
been
importuned
to
ing the published opinions of its
greater liberality in balance sheet
Chief Accountant."
treatment
If
a
registrant
makes
a
filing
stating accounts on principles for
which
tial
it
claims
there
authoritative
is
substan¬
there
can readily arise arguments as to
whether the claim for support is
well
support,
but
we
tically
-
.
■
.
a
assets
acquired
fortunate
as
a
purchase,
shall continue to be prac¬
deaf
to
persuasion
the
of
appraisals.
We have had several discussions
—
in
serve
case
of
of
result
practical and
some
demic
founded.
Problem of New Accounting
of impend¬
Procedures
pany,- and the firm is now con¬ ing danger.
And this danger will
ducting business from offices at be revealed, not because-"each
You ^cannot write rules to an¬
28 Concourse East.
Morris Miller shareholder, male or female, iTOld swer questions like thht. The dis¬
tion,
of
Glen
Fails
Insurance is a principal.
Miller Securities or young,i^will bother to remove cussion^ will go^on through the
Company and of the Lincoln Na- Co. was
formerly in business in the wrapping from the annual re¬ ryears because accounting is not a
iional
Life
Insurance Company. NewYork
City and Forest Hills, port in the post, but because spe¬ branch of .mathematics like arith¬
He is a member of the finance N. Y.
cialists, analysts, bankers, and metic or geometry.
changed to State Securities Com¬
survive
which
ideas
particular situations which
arise in a practical world.
Commission
with
powers
beyond saying that the statu¬
tory language in each
case
is
broad enough to give the Com¬
man¬
information,
each of the vari¬
reason
Acts administered
ers
holders to obtrude themselves ob¬
Now State Securities Co.
The
to
account¬
those which become accepted be¬
call
ago.
I will not enumerate these pow¬
the
primary purpose of publicity, the
sharing of full information with
owners, is to enable these share¬
Carnegie
Fund.
JERS-LY CITY, N, J.—The
of Miller Securities Co. has
Nor
minutes
accounting matters.
can
successfully; nor will it ever be.
The ordinary run of folks are too
busy, even were they competent
ourselves
reconcile
must
results
financial
argument
of
else, is
the
as
head
power,
requirements
as
"Main
Z.
hopelessly
as
was
directors
<ot the General Reinsurance
at the annual
holders
market
com¬
William
and
Co., investment bankers,
to
deposits which
reserve
in
committee of the Ford Foundation
xaist and partner of Lazard Freres
-added
lower
1926
democratization
meeting.
Hettinger Director
and
of
the mortgage
the
and
to the whole business.
reserve
purchasing
prog¬
financial
remember the
must
prime
words
A
would
the
partici¬
direction
is that the
shareholder—the owner, in other
of
purposes that would create
of
pation
money market specialists come to the conclusion
lending
is
the
placed in its
relation to the whole mat¬
cussion
requirements is not to be unexpected in
stimulation of the economy is needed at this
the ways in which it could be
brought about
would be by decreasing reserve
requirements.
Such a develop¬
ment would make available to
these institutions funds that could
the
ills
proper
the liberal side.
on
infor¬
advocacy of really infor¬
publicity as a corrective
mative
not hesitate in making reductions in. the reserve re¬
quirements of the deposit banks. The change in reserve
require¬
ments at that time
the
Street":
for certain
It is being pointed
business the powers
in
you
book
"The
ease.
that be did
Important
business
a
ment made in
requirements of the commercial banks
rates will continue to
during the 1948/1949 let down
Most
speaking,
financial results of its operations.
very strong in the financial district.
The
pattern of business, which does not seem to be
showing any im¬
portant turn for the better, is given as the main reason for the
money
information
security and the
a
condition
will be reduced is still
that
the
and
most determinative of
value of
Many of
opinion that
that
of
Generally
lengthen maturities which means that the
shorter-term obligations are being sold and the
proceeds are going
into the longer-term bonds.
There has also been quite a number
of trades reported by the same institutions in which the
3Mis of
1978/83, have been let out and the proceeds have been put into
the most distant 2V2S.
out
reliability
ing principles.
to
reserve
the
on
information
in accordance with sound account¬
Although the bulk of the funds which have been going into
the bank bonds is reported to be new money, there has been, how¬
ever, a considerable amount of switch money also involved in
these transactions.
It is evident that the smaller commercial banks
The belief that
reg¬
administered by the Securities and
institutions.
?
the
ulatory provisions, of the statutes
why this bond has been the favorite issue of the smaller deposit
Lowering of Reserve Requirements Awaited
both
We
suffering together from
ancy's growing pains.
of
extensive
is
of
the occasional arguments
disagreements must go on.
and
their
mission
going to go into detail
effectiveness
The
are com¬
poses,
cause
For this
general objectives.
disclosure
adopted before old ones
sound
ous
This
acquainted with the
statutory pattern of disclosure and
regulation.
of the 2V2S due 9/15/67-72 around for sale appears to be the reason
continuing
these
audience
of flexibility as
far as the buying policy of these banks is concerned because they
can mo\/e from one obligation to the other
depending upon how
the supply picture shapes up.
The fact that there have been more
are
not
protection of investors. In
words, accurate accounts are
tool for performing most of the
few
plan.
am
lead, to the adoption
accounting
procedures.
new
Consequently diversity of practice
may continue as new practices are
Congress has
jobs required to attain the gen¬
eral objectives which I listed a
administra¬
of
of
business op¬
led, and doubtless will
to
a
required to per¬
obligations with prudence.
In cases of reorganization
assurance
under which
erates have
continue
other
gate contribute to the attainment
have been the leading buyers of the longer Government securities,
with the choice obligation being the bank 21/zs of Sept. 15, 1967/72.
"
for the
the
and
by the Securities and Ex¬
change Commission in the aggre¬
1
principally the out-of-town
trustee
a
which
statutes
enacted in the public interest and
to how the several Acts admin¬
as
the
as
the
be
istered
concerned.
are
such
some
of
Banks
of
buying, but it
significant
the most
of information for the Com¬
mission and the courts in carrying
out the regulatory provisions of
vigorous inquiry into the true fi¬
nancial status, and a sound, fea¬
sible, fair and equitable reorgani¬
the main buyers again
attention than the Treasuries
more
private pension funds
should
issues
ditions
pletely discarded."
considers
or
obviously
source
tion by an independent trustee, a
of the most
distant higher coupon Treasury obligations, with the several state
.funds taking the play away at this time from the private ones.
Nevertheless, the private pension funds have not been exactly on
the inactive list, because it is reported they have been fairly siz¬
able buyers of the longer-term 2V2S.
Corporate bonds, however,
'have been
to
or
to be
have been
funds
is
large interest of public creditors
public investors, there should
a
disposed of, so much so in some
instances, that the pot is termed to be "rather empty."
were
owns
(10)
of corporations in which there is
have been sellers of these securities have pretty well liqui¬
dated the bonds which
required
well as changes in con¬
as
only is the information con-i
It
is
not
possible forever to
its financial affairs im¬ clothe a growing boy in the same
portant to the present and pros¬ suit of clothes. If it is not prac¬
pective investor as a means of ticable to have accounting prin¬
evaluating the security which he ciples formulated for SEC pur¬
trustee should be
It is also indicated that those institutions
"being well absorbed.
Hvhich
debenture
form its
longer-term bonds will move
ahead in price in the not too distant future because the available
supply of these securities is being cut down sharply and they are
^
be
worth."
real
of emphasis and ob¬
"Changes
Not
themselves.
duties
to be the opinion of certain money mar¬
higher
should
countants:
cerning
regis¬
be
power,
contribution to the mak¬
a
a true market price.
This
point but half appreciated at
a
its
sufficiently independent to assure
conscientious performance of the
-market from time to time.
seems
is
scrutiny.
should
as
ing of
publicly available information
and
no
Nonetheless, it
but
(9) Trustees for corporate bond
taken out of the market by a wide variety of investors even
v
and
about
continues
Government' obligations
securities,
democratization
to
through exercise of voting
disadvantage of their
to careful
tered
Higher Prices for Long Bonds Expected
been
to
.
adjunct
an
People engaged in busi¬
nesses
involving recommendation
of investments, sale of securities,
handling of other people's money
bit more attention than the middle maturities.
longer-term
the
to
allowed
be
not
Accounting Re¬
published in 1953
by the American Institute of Ac¬
of
Revision
search Bulletins,
jective
This, then, is the ultimate
defense of publicity. It is not as
.
of such inside informa¬
use
promptly disseminate
intelligible to all.
terms
a
and
the information, translating it into
security holders, and trans¬
actions between such persons and
the
corporation should be sub¬
Although the short-term market is still the most active one,
a very substantial amount of business done in both
the intermediates and the longs, with the latter bonds, according to
has
others will
not
—
,
fellow
there has been
The
thought expressed in the
introduction
to
the Restatement
for securities
of manipulation.
be free
myself -
,1 would like to associate
V-l'X;
with
markets
should
make
The larger money center deposit institutions have
been the active ones in the near-term and intermediate-term is¬
sues.
It is evident, however, that the desire to extend maturities
is still a very positive one, because the belief is as strong as ever
that easy money market conditions will get easier.
A lowering of
reserve
requirements is looked upon in some quarters as being
purely a matter of not too much time.
-there
.
(7) People with inside informa¬
issues.
a
„
The
(6)
all the way from the shortest to the most distant maturi¬
The out-of-town commercial banks and pension funds have
reports, getting
meetings
corporate
ranges
been the
12
page
blindly.
give evidence of better¬
ment because of securities are moving into strong hands.
There
■is a real investment demand around for these obligations, and it
*iry
from
Objectives oi Securities Regulation
The Government market continues to
ties.
April 8,1954
The Commercial and Financial Chronicle... Thursday,
(1588)
on
—
the
handling
We find
subject
sionate
some
aca¬
departures from cost
depreciation.
of
that that last mentioned
stimulates
argpment
r
equally
on
the
pas¬
part
of
bojtjivproponents and opponents. I
will not breathe
subject
had
this
sponsibility
a
thought
morning.
discussions
of
as
the
to
on
We
the
that
have
re¬
independent
Number 5314... The Commercial and Financial Chronicle
yolume 179
iff
(1589)
accountant to insist upon employ¬
Capital Expenditures to Remain High
ing adequate auditing procedures.
►
Foreign Securities
We have had
i
several
problems
Nice
questions
by
the
frequently
are
arithmetical
posed
impossibility
converting the result achieved
by one method of accounting into
a
result
which
achieved
tion
the
by
another.
An
is
have
would
been
application of
policy ques¬
to us in the
overall
presented
matter of accounts and other dis¬
closures
by
national
of
The
encouraging
investment
abroad
naturally
suggest removal
artificial barriers to
purely
the
issuers.
in
interest
American
would
foreign
of
access
American
foreign issuers to
markets.
On
capital
the
other hand, if foreign stand¬
ards of disclosure and accounting
not up to our standards, it
might well be that lowering our
standards for foreign issuers
are
would
ing
in
result
which
public interest.
ceive of
It is hard to
below last year.
sizable
a
The survey indicates that railroads
cutback
in
investment—over
transportation
companies
exist
of
that
does
these
1954
pared with
programmed
actual
controversy.
When
only
|
1954
Change
11,410
5,821
"""5,220
6,455
6,190
1,011
1,040
1,312
940
Transportation, other than rail-
1,464
1,400
Public utilities
4,548
4,430
7,778
8,010
goods industries--
Non-durable goods industries,-
turmoil
_
Commercial
con¬
_
and
__
other
—
—
the
accounting
American
a
industry,
miracle
troversy
that
are
Private
small.
so
of
American
have had
the
of
Account¬
the achievement of the high
standard of American accounting.
Securities
Commission
istered
the
and
the
and
admin¬
Acts
of
informative
better
and
corporate
ac¬
counting and reporting.
•
1953
7%
—
7
—10
—
discipline of legal liabil¬
has been imposed upon issu¬
officers, directors, controlling
stockholders, underwriters
and
ers,
experts.
was
Act
the
adopted there was
to the effect that
imposition of such liability
-
larger
As
results
indicated
for
in
restrained exuberance in the pre¬
sentation of material, they have
not
materially slowed down the
of capital formation nor
Lave they resulted in a wave of
process
name
As
goes
statement
controllers
on
under
your
registration
a
the
Securities
-Act.
The Form S-l, as you know,
calls for the signature of the is¬
suer's controller or principal ac¬
counting officer.
Section
11
of
The liabilities of
the
Securities
imposed upon every
signs the registration
.-are
~who
ment.
On
therefore,
matters
the
Act
accounting,
of
controller
cannot
table
+
—
—
+
27,230
which
below
4
and
those who have
Ibetter and
porate
has
legal
first
cor¬
practices.
It
a good many stragglers
falling in line. I cannot see,
view
In
guage
of the
categorical lan¬
of the statutes which it ad¬
ministers,
can
hew
the
Commission
do otherwise.
Hogan & Vest Formed
SAN
FRANCISCO,
William T.
Vest
have
Calif.—
Hogan and Edward S.
formed
Hogan
&
Vest
-with offices at 949 Stockton Street,
to engage in a securities business.
high
a
the third
in
Manufacturers'
The
7%
—
The
Financial
adjusts
the
from
offices
at
21
Elm
*
Street,
..J. L.
under
the
Brady & Co.
Junet
,
12.35 12.26 12.30 12.22 11.70 11.59
0.93
1.06
1.10
1.06
1.03
1.34
1.34
1.30
1.26
1.17
0.86
Transportation other than rail
1.38
1.38
1.59
1.52
1.46
1.38
Public utilities
4.40
4.64
4.72
4.46
4.60
4.58
7.42
7.92
7.94
8.00
8.04
8.03
27.84 28.48
28.92
28.56
28.04
—
—
—
^Commercial and
other..
Total
♦Data
to
exclude
current
account.
expenditures
Estimates
of
business
agricultural
after
have
1951
been
and
outlays
27.52
chargers'
revised.
(( *
fEstimates are based on anticipated expenditures reported by business
February and early March, 1954. In addition to seasonal adjustment, these
Periods are adjusted when necessary for systematic tendencies in anticipatory
trade, service, finance,
^
and
communication
t
'•
construction.
firm
name
of
Mr. Brady was
.lormerly with Gibbs & Co.
The Public National Bank
AND TRUST COMPANY
of NEW YORK
survey
quarter
quarter
of
were
1953.
Main Office, 37 Broad Street
On
about
1%
goods
small and medium
industries.
The
also finds that the
sized firms expect relatively larger declines in
survey
capital outlays this year than do the larger companies.
Within
the
dustries— iron
durable
and
goods
steel
the
groups
non-ferrous
and
primary
—
expect
outlays in 1954 to be about 25% less than in 1953.
tries^.made their peak expenditures in
grMJ? are still well above pre-Korean
gOQpjs;, industry planning a significant
ip^v# is the motor vehicle and other
grqqp, where outlays are scheduled at
tha,p in 1953,
chinery
chinery
in¬
capital
These indus-
1952, although
1954 proThe only durable
rates.
increase in expenditures
transportation equipment
approximately 20%
more
while companies producing non-electrical ma¬
scheduling expenditures some 10% less than in 1953.
group,
are
In the nondurable goods
capital expenditures,
paper
metals
their
A small increase is planned by the electrical ma¬
sector,
an
important area of strength
planning a record $2.9 billion
increase of about 4%
over
1953.
and rubber groups expect their 1954 rate of fixed
be about the
ment to
OF
same
last year
as
CONDITION
March 31,1954
RESOURCES
%•
Cash and Due from Banks
State and
Municipal Securities
Other Securities
Stock of the Federal Reserve Bank
Banking Houses.
.
increase in outlays anticipated by the commercial
a
grdup.
Mining
3% rise, centering largely in gas and oil
well drilling.
,
.
I
of
ties expect revehues
expect little change
3,036,973.56
.
.
3,123,288.08
.
.
.
975,000.00
2,242,461.77
.
891,932.82
Other Assets
232,989.46
$511,587,159.44
LIABILITIES
Capital
$15,225,000.00
17,275,000.00
.
32,500,000.00
t/
■
Undivided Profits
Dividend
$42,879,710.86
Payable April 1, 1954
Unearned Discount
435,000.00
2,090,142.24
..........
Reserved for Interest,Taxes,
Contingencies
5,590,004.51
$4,538,734.41
Less: Own in Portfolio
.
1,108,139.12
3,430,595.29
Other Liabilities
611,929.13
Deposits
456,549,777.41
$511,587,159.44
%
Expectations
requested information
United States Government Securities carried at
*
on
saldS
expec¬
thatvon the :whole businessmen'
approximate those for 1953. Manufacturers
about 3% below the 1953 average. The utili¬
to increase about 10% while other industries
from 1953 rates.
$19,152,446.51
are
pledged to
and for other purposes as
indicates
In manufacturing, every
10,379,710.86
....
Acceptances
.
,
The decline in
anticipated expenditures by public utility
companies reflects reduced outlays expected by gas utilities Com¬
panies in the rapidly growing electric power industry anticipate
expenditures fully as high as last year. The recent reduction in
operating revenues and income and the near completion of their
dieselization program are largely responsible for the sharp cutback
in investment being programed by the railroads.
sales dip
.
.
Accrued Interest Receivable
while food and beverage
The textile-mill group
nonmanufacturing group as a whole
area is expected to hold up
quite well—only 2% less than was spent in 1953. The continued
boom in suburban shopping center construction as well as exten¬
sive Store modernization plans are the primary factors in t^he 3%
a
4,817,878.29
263,625,024.32
"JThe
investment in this
expect 1954 sales to
Mortgages
Liability for Acceptances
The plans reported by the
foresee
82,212,918.55
30,868,323.25
...
.
Nonmanufacturing Trends
The ^survey
./.
...
moderate decline.
a
companies also expect
.
.
...........
F. H. A. Insured Loans and
Customers'
$119,560,369.34
.....
.
Loans and Discounts
Surplus
1954
.
invest¬
scheduling $1.3 billion of outlays, about 15% less than last year.
indicate that
-.
.
U. S. Government Securities
an
is in the petroleum industry which is
of
CONDENSED STATEMENT
1954 Programs
in manufacturers' outlays planned for 1954
greater reduction in the programs of durable goods
industries—10%—as compared with a 4% decrease expected by
tations.
Chronicle),
WORCESTER, Mass. —John U
Brady is engaging in a securities
"business
Apr.-
Mar.f
0.96
.
decline
This annual survey also
Brady Co. Formed
CSpccial to
Jan.-
Dec.
4
a
Sales
J. L.
Oct.-
Sept.
two
to
liaj^goaded
Into
1
Railroad
are
anticipated through
quarters of this year.
A somewhat lower rate of
expenditure also is implied for the second half of this year when
comparison is made between the rates anticipated for the first
two quarters of 1954 and for the year as a whole.
is
support
informative
accounting
July-
June
data.
loaned
helped to develop
more
Mining
•
3
expects a sharp decline of almost 30% while the chemical industry
account-
ring standards and procedures.
moral
1954
Apr.-
Mar.
•
Manufacturing
3
companies anticipate
tooth
1953
.»
in
contributed to improved
Commission
universe totals
are
(Billions of dollars)
3
ravoid being "it." It would be hard
"to argue that this liability has not
The
1952.
years
Jan.f
influences, the rate of plant and equipment
reached
this basis, capital outlays in the fourth
lower wnile lurther moderate declines
person
state¬
the
seasonal
exnenditures
non-durable
,
attached tables
<"V
capital goods that occurred during 1953.
deter
suits.
the
corporate, reporting to the Department of Commerce.
in the
survey conducted at this time last year.
A small part of
this increase may be accounted for by the
slight rise in prices of
results from
capital
formation.
While the liability provision,? have
law
as
1
—28
expenditures of $7.7 billion in the fourth quarter
brought capital outlays for the year to $28.4 billion, or
1952.
The actual expenditures for 1953 proved to be
by 5% than the planned outlays indicated by business
protest
would
28,391
—
At the time the Securi¬
ties
strong
for
on.
tables.
4
above
the
The
ity
of
Exchange
by it have contributed to
development
more
incorporates statistical revisions
attached
Actual
like
with
The
the
Quarterly Trends
-
great deal to do
a
Total
con¬
Institute and like the
Institute
in
,
almost
is
areas
organizations
Controllers
ants
it
the
well
4 Includes
of
problems
sales
Percent
(Millions of dollars)
Durable
presented
groups
.
com¬
siders the vast complex presented
by
4
if'
•
1953
generally mod¬
1953;
mod¬
groups
12,276
con¬
one
are
pro¬
"."
Manufacturing
are
Expenditures for New Plant and Equipment by U. S. Business*
Quarterly, 1953-54, Seasonally Adjusted at Annual Rates
given below and in the
are
1953
Ameri¬
a
down
expenditures for major
spending in 1953
table attached:
problems
indicate
not
the
V
The
regulatory commission.
fact
are
erately.
Railroad
The
as
•
other
of
grams
Mining
can
25%;
industry
The estimates presented in the
based on the sample data.
an
spend about 3% more than they did in 1953, while scheduled
spending of $4.4 billion by the public utilities marks a slight re¬
planning
better
or
figures prior to 1952 are unchanged. The basic data
derived from reports submitted by corporations
registered
with the Securities and Exchange Commission and
by a large
sample of nonregistered manufacturing companies,
unincorporated
to
duction from last year.
by
release
and
less than they spent in 1953.
outlay of $11.4 billion, 7%
Mining and commercial companies each expect
call for
programs
^
rise, with the
were
this year of $27.2 billion, only 4%
Manufacturers'
tion"
an
This
planning investment
are
below 1953
The analysis of plant and
equipment expenditures is based
estimates
1
The survey shows that businessmen
expecting to either maintain
erately higher than current ?ales rates.
on new plant and equipment by U. S. business
being scheduled at a rate almost as high as actual
outlays in 1953, according to the regular annual survey of capital
budgets conducted during February and early March bv the
Securities and Exchange Commission and the
Department of
Commerce.
groups
These sales expectations for the full
year 1954
are
aggressive, two-fisted,
American corporate executive not
insisting upon "most favored na¬
from
major
only 4% less than spent in 1953.
an
treatment
Producers of nondurable
goods anticipate a 3%
Expenditures
this year
general lower¬
not be in the
a
would
this year
ment
expect their sales to be some 8%
rate of sales in line with current
volume.
—a
Survey by the Department of Commerce and the Securities and
Exchange Commission reveal businessmen are planning invest¬
in respect of foreign issuers.
of
able goods producers
~
G*
public and trust deposits,*
required or permitted by law.
secure
MEMBER: N.Y. CLEARING HOUSE ASSOCIATION
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
*,
25 Offices Located Throughout Greater
major durable goods industry expects
year's rate. In aggregate, dur¬
its 1954 sales to decline from last
i
New York
1f
62
The Commercial and Financial Chronicle...
(1590)
Continued from page
10
Consumer
:
steady through most of the
(5) A slight decline in spending
for new plant and equipment.
;
weakening
Some
(6)
con¬
increased
unemployment,
be¬
cause of the cut in overtime, and
the widespread talking and writ¬
ing about depression factors.
from
lower weekly take-home pay,
Baldly stated,
of
the
a
of
factors
listing like that
sounds
decline
But let's ana¬
pretty formidable.
lyze them.
u
In the first place,
I want to say
greatest effect
of these factors has already been
that
I
felt.
the
think
look for a
next quar¬
Consequently, I
reversal either in the
American
the
Well Said!
basic
economy.
economy.
in
tors
most
three
The
important fac¬
expendi¬
national
gross
tures, or gross national product,
business spending, consumer
are
spending, and government spend¬
ing. The outlook for these three
is
comparatively favorable be¬
yond the near future.
Recent
developments
affecting
business spending clearly warrant
a
conservatively optimistic atti¬
tude. Note that
struction
1953. If there is a further
building and con¬
first quarter is
higher exemption in income taxes,
consumer's position will be
the
favorable.
more
,
unemploy¬
ment
-approximates
3.6 million.
There has been a slowing down in
the rate of increase, and this has
had
a
very
favorable psycho¬
logical effect. There is evidence
that employment will tend higher
later in the year and that unem¬
ployment will decline.
Employment:
Savings:
the
for
natural
personal tax relief in the form of
a larger cut in excise taxes and a
still
Total
Consumer
principle developed their natural resources under
private enterprise, with the initiative and dynamic
qualities that go with private ownership and man¬
agement. There are, of course, certain exceptional
-
activities of broad
will
than
rather
U-shaped
P
V-shaped.
in
own
1952 to date.
Beginning with the
quarter of 1952, we added
$4.3 billion, annual rate, to in¬
ventories.
In the fourth quarter
of 1952 we added another $8.5
third
i
1953 total. Adding these two im¬ $3.1 billion.
Psychology: At no time since
portant components of business
spending to the halt in inventory the downturn began has the pub¬
liquidation^ there is considerable lic's psychological reaction been
justification for concluding that one of fear. The fact that lay-offs
not
we
are
at the tail end of the are
gaining momentum * is
factor
the
that
war,
did
not
even
or
before
in
the
It
period
exist
pliances, television. It was comi
paratively heavy in some seg¬
ments of the non-durable goods
enough to threatep not only our
.
with
may
may
"But the line is not
hard
a
to draw.
one
Where
responsible private enterprise is ready and willing
to engage in an
undertaking with private funds,
only the most compelling motives can justify depar¬
•
ture
from
the
private
enterprise
principle
which this
country has been founded.
real issue at
Niagara."—The National
upon
This is the
City Bank of
New York.
With
might be pointed out that in
years
consumer
spending
stocked
government
appropriately engage.
be found in some of our
great river basin developments where expenditures
for flood control,
irrigation, and reclamation, com¬
bined with power, are not
expected to be productive
of sufficient revenue to justify private investment.
recent
immediately preceding the Korean has been subnormal in terms of
War. That factor is government consumer income. Put it the other
consumer
savings
spending, and particularly spend¬ way around:
billion, and in the first, second
have been held at record highs. In
ing for defense.
and third quarters
of 1953 we
Who among us would be foolish estimating spending for the rest of
added
respectively $3.7 billion,
enough to believe that we will 1954, I allow for these continued
$6.3 billion, and $3.1 billion. This cut back defense
spending dras¬ high levels of savings. That is, I
constant accumulation of inven¬
tically with the threat of Com¬ assume no change in the ratio of
tories made a subsequent decline
munism facing us? Who among us spending to savings.
in output, employment, and pay
But I do not agree that con¬
would be foolish enough to be¬
inevitable.
lieve that
we
will again allow sumer spending is going to go way
Now
the
inevtiable
has oc¬
ourselves to be caught unprepared down. How often have I heard in
curred.
recent weeks that the public does
as we were at the outbreak of the
The accumulation of inventories Korean
War?
Who
The public can
among
us not have to buy.
was most
marked in consumers' would expect America to reduce wait. Time and again it is empha-,
durable goods—automobiles, ap¬ her
defense
spending
sharply sized that the consumer is well-
which
public benefit, regarded by com¬
private enterprise,
not suitable for
as
Examples of these
interpretation is that
the present decline has been
caused mostly by badly needed
inventory readjustment, far less
decline in business spending and definitely a favorable factor.
than by the decline in defense
I'd like to go a little deeper into
that a more hopeful outlook is in¬
spending and the moderately dicated for later this
the whole question of consumer
year.
lower trend in spending for new
Now,
how about government spending, for two reasons. Con¬
plant and equipment.
The im¬
spending? Those among us who sumer spending is the keystone
portance of inventories in a busi¬ are
talking about a major reces¬ of the national economy, and is of
ness readjustment has been
to
sion or depression seem to over¬ interest
you
as
purchasing
clearly evident in the trend from look
a
very important economic agents.
My
fc
be
consent
mon
being maintained on a high level. holdings of "E" bonds at the end
of 1953
approximated $197 bil¬
Note
also
the
estimate by the
at the latest, in the
versal
people.
traditionally and as a matter of
"Americans have
Department of Commerce and the lion, or $8.6 billion higher than
early
the previous year. On the other
SEC of only a 4% decline in ex¬
part of the third quarter. It will
penditures
for
new
plant and hand, the increase in short-term
come slowly.
Let us say, putting
indebtedness during 1953 was only
equipment from the very high
it on a business graph, that the re¬
ter or,
resource
maximum benefits flow to all the
and
cash
lot said about water
power
a
being a
'belonging to the people'there¬
fore, that only government should develop it. But
so too are coal, oil,
timber, metals, sulphur, salt, and
so on, natural
resources; yet this has no relevancy
as an
argument against private enterprise. The only
relevant consideration is not who
develops these re¬
sources,
but how they are developed — that is,
whether they are developed in a
way so that the
Income:
than in
American
the
in
things
"We hear
Disposable
income
(personal income
minds taxes)
behavior will
average
nominally
higher
at some of the most
Let's look
results
This
confidence.
sumer
of
and
characteristics
the
of
year.
influ¬
is
by income, unemployment,
savings, debt, psychology. Let's
take up some of these items.
enced
Business for the Remainder of 1954
been
spending
Thursday, April 8,1954
voice
met
hardly more than minor reservations
hearty amen!
a
and
consumer
needs
community
great. And these poten¬
tial demands will show themselves
in
renewed
purchasing
as
sition
And confidence will be restored
ment
still
the
rate.
1.1
million
unemploy¬
remember, is
below
the
go
then
be
in
a
po¬
upward, rather than
siderations.
present
This,
to
continuing to decline.
Now, I have dealt almost
tirely with strictly economic
con¬
fidence is restored.
—despite
will
:■ economy
are
we
mention
ciple
1950
the
to
want
en¬
con¬
merely
prin¬
cardinal political
a
that
economic
high.
The percentage of unem¬
ployed is still small in relation
I
will
also
situation.
attitude
of
affect
And
the
this
it
the
government,
of this Administration or
any Ad¬
to the total labor force and the.
ministration, toward the American
'number employed.
economy.
Don't
misunderstand
I'm
me.
The Administration has
not
making flight of the human,
suffering * that goes with unem- •
ployment. But I do say that, as
gone
that
record
on
it
already
will
not
automobiles, wash¬
allow
the
economy
to
decline
own
security but the security of ing machines, stoves, refrigerators,
much further, or unemployment
the free world?
television sets; that his wardrobe an * economic
to go much higher.
phenomenon,
we
Government
industries, notably textiles and
You can answer those questions. is well-stocked with apparel. Time must keep* it 4n
perspective, and. intervention in the realm of tax
apparel, boots and shoes, and to I want to say that defense spend¬ and again I hear that the'con¬ not be overwhelmed by it. It is
reductions, the credit situation,
some extent paper.
ing, even with the let-down from sumer will wait with all except surely not that high.
and
defense
and
public works
Unfortunately the total inven¬ the record high of last year, will absolutely
necessary
purchases
•'Unemployment may not decline spending will be an important in¬
still be running at a rate of $46 until
the
economic
tory figures do not provide us
^atmospherex as fast as -production increases. strument of support for the econ¬
with a perfect basis for anaylsis, to $47 billion annually for some clears and there is greater assur-„ There
is
very
little doubt that omy.
In
1940
defense
inasmuch as a good portion of the time.
spending ance that he will not be; drawn American
Conclusions
-business hoarded labor
was $2.5 billion.
into the ranks of the unemployed.
total
represents heavier stocks
from the outbreak of World War
,
r
.
v
.
.
There
carried for defense needs.
is
also
state
I'd
local
and
These
cautions '
are
absolutely
De¬ unrealistic.
It is my belief that there has spending to be considered.
fense spending will decline some.
now been an adequate correction
The American consumer is not
But this will be offset by the
in 'production of consumers' dur¬
going to sit around waiting for asteadily rising trend in state and
able and
non-durable
goods so
depression. Those who think he is
local spending. I might point out
that an early upturn is warranted
are
ignoring the rising popula¬
that estimates made by my organ¬
within about 90 days.
This may be
ization
indicate
that
state
and tion, the higher standard of living,
slightly delayed because distribu¬
and the needs and desires of the
local spending will run at an an¬
tors are resorting to their usual
American public. They are under¬
nual rate of $27 billion for most of
excessive inventory liquidation in
the rest of the year. This com¬ estimating the changing economic
a
period of decline—just as the
forces of recent years.
pared with only $7.8 billion in
somewhat too whole-hearted way
in which they
follow a policy of
excessive inventory accumulation
during an advance.
Why Decline Is Leveling Off
My belief that the present de-
cline will
not
extend
much fur¬
ther, in intensity or duration, is
based on two major considera¬
tions.
(1) The present decline in ac¬
tivity, having been initiated by a
real need to curtail excessive in¬
ventories, can be held
ageable proportions.
to
man¬
(2) Analysis of the factors in¬
fluencing long-term decisions to
spend, when coupled with the
spending plans already announced,
evidence the inherent
strength of
the economy today. Easy money
is already showing its effect on
A
1940.
In my
sion
in
book "No Major Depres¬
Our
Lifetime"
have
I
few
terest
to
building
and
construction
year—1954. State and local
spending are already showing a
rise.
The inherent
strength of
the economy must be judged on
the
basis
of
long-term
institu¬
tional changes that are modifying
you
should
be
of
in¬
in connection with
consumers' needs and wants.
gov¬
ernment
The
of
number
homes
that
have
spending, as components
air
conditioners, \freezers,
dish
national expenditures.
washers, ironers, automatic wash¬
ing machines, and water heaters
spender—the consumer.
is comparatively very low.
of the gross
There remains the most important
The Consumer Can
Give
the
Add
to these
family needs, the
Answers
community needs for new hospi¬
tals, new schools, more and better
The
answer
to
the
1954
re¬
covery is the consumer. The im¬ highways, and we can readily see
portance of consumer spending to that we are far from having satis¬
gross national spending can easily fied our needs and wants.
be realized when it is noted
of
that
national
,
.,
.
.
~
„
Change Not Coming Immediately
^
spending, con¬
sumer spending in 1953
Don't get me wrong. I'm not
represented
62% of the total. It approximated saying that all of this will be re¬
$230 billion out of a total gross flected immediately in 1954. What
gross
national
billion.
expenditure
of
$367
I
am
saying is that the American
economy
is still expanding.
until
most
recently.
A
tight
labor market encouraged hoard¬
ing and as long as it was possible
to pass on the higher labor
costs,
business
was
not
too
much
Un¬
like
clusions
to
wrap
on
• as
gross national
total
on
con-; reach
my
con¬
activity, based
product
not
cerned about the extra labor sup¬
second
ply.
later
well
as
production,
low
a
up
far as I have gone:
as
General business
should
than
the
quarter of 1954.
However, with the need of
keeping labor costs down and
with the
the
labor market very easy,
need for adding to the labor
force
will
not
be
be faced
great.
very
Under normal conditions
we
with two million
f.
con¬
to
relative
stability
of
wholesale
I pointed out previously
keeping the present
readjustment within limits is the
prices.
we
have not had in this
re¬
adjustment the drastic decline in
prices
a
that
usually
real recession.
costs
and
cline in
been
of
warrant
the
characterizes
In this
fact
rigid*
case
that
the
de¬
character
that
would
dumping, has contributed
stability.
».
to this pricb
I
believe, furthermore, that no
drastic price declines will occur.
Wholesale
prices will be about
the same or only slightly lower
during the coming mon hs. Fin¬
ished^- goods
prices
may
show
more^easiness 1jhan raw material
early
third
home pay.
Inventory
item
some
in
liquidation,
the
present
terminate
time
in
not
the
a
key
decline,
later
third
than
quarter.
However, inventory accumulation
will lag, especially in view of the
relative stability of prices.
There
the
be
prices.
may
wholesale
1953-54
acterized
some
easing
in
But in general
decline will be char¬
remarkable
by
price
stability.
The
general business has not
a
or
Disposable income will average
should
Another factor that will
tribute
that
quarter
higher for the year—despite the
unemployment and lower take-
may
unem¬
ployed.
In 1953, out of a total of 42.2
given a fuller analysis of the part
million passenger cars on the road,
played by government spending
in the modern economy. Defense only 23.3 million were five years
old or newer. The proportion of
spending is not the only item in
old cars is exceedingly high.
government
spending.
Govern¬
With the exception of radios,
ment spending
has become and
will continue to be a tool in the refrigerators, and non-automatic
support of the national economy. washing machinees, the saturation
point in appliances is very low.
So much for business and
.
total
this
facts
II
consumer
frightened.
frightened.
be
a
bulwark
healthy
The
of
economic
not
been
an
essentially
situation. -
government
additional
view
has
And he will not be
He will continue to
of
will
supply
strength, especially in
the
important
fact
that
1954
Congressional
is
an
election
year.
-4
And the American businessman
prices. Quotations should firm up will do as he has always done
during the latter part of the year, in a period of marked competition
—he will resort to his ingenuity
so
that the composite index ait
in creating something new, some¬
the end of the year may not be
much different than at the be-, thing
different, at a price the
ginning.
This
means
that
the
consumer
can
pay.
Frcjin here
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1591)
it will be
on
question of selling
a
All
i
factors
tribute
will
con•
to
American
when it
involved
at
economy
time
a
vitally needs to be strong.
great as
as
A Korean peace
ever.
settlement
has
not
been
yet
reached.
A bloody war is still
being waged in Indo-China. Nine
after the
years
agreement
no
Austria.
We
sphere
have
know
the
best
can
a
in
still
Germany
on
all
uncertainties
there is
war
and
that these
international
be
met
if
we
But
I
would
duty to
be
us.
in
my
if I did not tell
you
you
.
that the need of
does not
remiss
a
strong economy
that
mean
cannot and
we
will not have marked fluctuations
;in the business situation.
ica's
the
for
need
economic
& Co., Barrett Herrick
Co., Inc., and Gearhart & Otis,
Inc., on April 6, offered publicly
2,000,000 common shares, 10 cents
Amer¬
literacy,
ance
on
the continental
has
company
construction
operate
a
of
and
oil
Texas
in
in
areas
which
there
the
Field
barge.
W.
Day in Sepl.
PHILADELPHIA, Pa.—The
company
Valley
L.
Jordan,
director
President
of
the
of
President
Sept. 24,
Officials
for this
Co.,
brokerage
a
to
The
Harry B. Jor¬
are
dan, Leslie Durant,
Alexander
house.
director of
a
win Hill
and
directors
of
Perry R. Bass, both
Sid
W.
Richardson,
the
Bond
Club,
of
the
Abington,
Bond
announce
a
Club
de¬
the
(Special
to
The
Financial
Halvorsen
is
now
pates will be the most successful
Day in the club's history.
to
The
Anderson
staff
of
has
E.
E.
been
Vice-Presi¬
Blyth & Co., Inc. has been
;appointed Director of the United
States Savings Bond Committee
New
Chapter
of the Invest¬
ment
Bankers
Association
America.
of
Mr.
Fisher
is
Chairman'
o
the
com-
mittee
,
f
Chapter.
The
-
ed
open¬
its
drive
in
sales
April
behalf
United
For the
6
of
-■
W.
■
Fisher
Series
bonds
-
-
People and Businesses
States
Government
Robert
of The Industrial
H
Southeast
part
as
of the nationwide campagin
spon¬
sored
by- the-IB A
rangement
under
concluded
an
1953 Was
ar¬
recently
Good Year
a
with
Treasury officials in Wash¬
ington.
Territory of the New
•York
Chapter of IB A includes
-New York, New Jersey and Con¬
As in previous years, new gains were made in
Other members of the commit¬
tee include: C. J. Devine of C. J.
benefits
Jr.,-
Doremus
&
Company, and
Fuglestad of Carl M. Loeb
As
'
m;
of
approximately
Tfew York
area.
Mississippi
and
team
will
make
special
a
or
our
1953
expansion
to
Natural
Gas
by the
area
Com¬
ever
to
us
more cus¬
before.
sistent pattern of growth estab¬
years.
Savannah and Au¬
as
more gas
The table below shows the con¬
in 1953.
tant cities
cost of
program, at a
bring
lished
such impor¬
plete
gusta, Georgia and Charleston,
monthly
connect¬
$60,000,000, enabled
progress
year
a
The completion of
tomers than
r
directly
Southern Natural Gas
company.
Southeast,
During the
the
of
through the lines of
important supplier of
Revenues
23% greater than in
reports to Mr. Fisher's committee
and
Company
lines
ing pipe line
South
Operating
Each
the
some
shared in the
made
'
-
from
atmosphere and economic
Industrial
The
pany
400
/leading investment firms in
businesses discovered the fine
Georgia,
Southern
savings bonds under the
of
more
fuel to the homes and industries
\>
:aSO <1
direct the activities of
^20 team captains in the sale of the
Auspices
an
t'V
^Fisher will
Series H,
And
Carolina.
The committee headed by Mr.
>
commerce.
enjoyed by those who live and work in
Alabama,
son,
Rhoades & Co.
more
climate, friendly
Salomon Bros. &
Hutzler; Emil J.
-Pattberg, Jr., The First Boston
'Corporation; Edward - E. Ander¬
Arne
natural gas for the first time either
people and
Devine & Co.; Rudolf Smutny of
Discount Corporation of New
;York;
William
Rex
of
Clark,
Dodge & Co.; William H. Long,
Columbia and Aiken, South Carolina received
industry, agriculture and
necticut.
greater
than 10
in
by the Company in recent
If
you
copy
for 1953,
J 953
were
would like
a com¬
of our Annual Report
please address the Sec¬
retary at the address below.
1952 and 271%
years ago.
"Plaque of Merit"
will be awarded to the team cred¬
ited
with
the
FIVE YEAR REVIEW
largest amount of
1953
-fall
dinner
of
the
Chapter of the IBA
New
on
Gross Plant and
York
Oct.
$126,051,234
$111,902,1633
48,329,135
39,425,260
35,467,928
27,136,450
22,475,899
7,036,615
6,749,710
6,910,901
5,338,214
4,472,673
(original cost)
21.
Secretary of the Treasury George
Net Income
Humphrey.
Net Income per
According to Mr. Fisher the
decided
the
to
series
center
H
bond
its
IBA
efforts
in
this
on
investor.
Outstanding
Cash Dividends Paid
3,422,102
$4,790,707
3,422,010*
$4,533,997
1.40
Share
per
time
after six months from issue
1.97*
4.04
1949
$76,733,265
i'"
3.43
2.88
1,711,005
1,555,459
1,555,459
$4,277,291
$3,344,095
$2,967,358
Cash Dividends Paid
It is sold at par
and is cashable at par at
any
2.06
Share
drive
because of its great appeal to the
average
Shares
1950
$99,249,660
.
Operating Revenues
if'
/
^
1951
Property $189,70/,896
The presentation will be made
by
M.
C-
1952
sales of the H bonds at the annual
1.32W
2.50
2.15
date,
on
one
pays
yield
six
of
to
months
3%
provide
an
with
as¬
overall
an
compounded
annually for nine
months.
Reflects share-for-share distribution in November 1952
month's written notice. .It
interest
cending rate of investment return
each
*
years and
•
•
semi¬
eight
SOUTHERN NATURAL
{
■
.
'
u
i
:
+
/f* '/
'•
GAS
COMPANY
*
watts building, Birmingham, alabama
L.
W.
Chronicle)
Willard F.
added
to
the
Investment
Company, Federal Securities
Building.
Robert rjN.' Fisher,
the
—
Henkle
Group Opens
of
with
Financial
LINCOLN, Neb.
time to arrange
Series H Bond Drive
York
Chronicle)
E. E. Henkle Adds
(Special
history.
dent of
Ries
Minne¬
Chamberlain & Co., Inc., 315 East
Avenue.
nessman's need, and your need are
■?
P.
of
WING, Minn.—Arthur M.
greater now than at any time in
NY ISA
Adrian
staff
Associates, Inc., Rand
government's need, the busi¬
our
,
definite date
the club management antici¬
Field
and
joined
RED
year's fall outing well in
mittees plenty to
Chronicle)
With L. W. Chamberlain
advance to give the various com¬
Shipyard, Inc., J. Ed¬ what
and
Haskell
apolis
1954, at the Huntington
Country
cided to
a
of
Pa.
is
company,
Day
Financial
Tower.
Philadelphia will be held
fi¬
present
The
29th
Field
the
Minneapolis Assoc.
to
MINNEAPOLIS, Minn.—Arthur
have
annual
been
has
the
of
other directors
drilling
Louisiana
Phila. Bond Club
the
&
barge for exploration in the tidelands
(Special
for the bal¬
of
2 With
•
barge line, a
tugboat line, and Thomas Jordan
commenced
submersible
independ¬
an
operator.
Club of
also
off
proposes
from
of
cost
completion
Thomas
the coasts of Louisiana and Texas.
The
the
and
contract
shelf
ent oil
value.
Inc., was
formed Feb. 10, 1954, for the prin¬
cipal purpose of drilling, oil and
a
Inc., and Jack Frost,
nancing, will consist of 4,500,000
common
shares,
10
cents
par
Tidelands
on
of
pay
Capitalization
on
share.
wells for others
contract
Alexander
shares will be
common
used, in part, to
par value, of American Tidelands
Inc., New Orleans, La. at $1 per
gas
A
with
Proceeds
sale of the
.
American
interest.
signed
$1,300,000.
Crerie
'
been
Shipyards, Inc., for construction
of this drilling barge for about
&
basis
strong economy behind
has
Slock at $1 a Share
■
strengthening"'the
"The threat of Communism is still
much recent
American Tidelands
rather than producing.
63
2.00
April 8,1954
The Commercial and Financial Chronicle.. .Thursday,
(1592)
34
We See It
As
;
that we think it worth
last week's address.
'
lion
of ours cannot stand
fail.
One is to hide in terror from
a year
from
now,
will be two mil¬
15 million more
until
more
We have as
choice is more exhilarating.
people—in our soil and rivers, and in our hands and our
genius and our hearts—every asset we need to create a
fuller life for every American in every year of our fore¬
a
am
I
am
guiding principle of the
idleness where there is work
to be
of
done,
no
man-made want, if you will, in the
of the
midst
at work."
"exhilarating" does the speaker find these ideas
he feels that he must undertake to pass on his ex¬
So
uberance to the
general public. "It is essential that our
people understand and ponder what it will mean for this
economy of ours to be on a full-production, full-consump¬
tion, full-employment basis," he adds.
"It will mean, if the best available figures can be
one-quarter again as much goods and
the
In,
tax.
distributed
not
.
independent existence when one
owner-management group retires
or needs to realize on part of its
investment.
The longer averag¬
I
.
not been in the law
services as
1936,
has not been changed
to
note
this
that
plan
during the
periods when the Labor Govern¬
be 20% higher than it is today.
mean, on
Thus,
since.
dividends have been
subject to full double taxation.
For many years, England has
had a system which largely elim¬
inates double taxation.
It is in¬
since
teresting
ment
the other side
in control.
was
eral
ing period for corporation income
be of particular benefit to
small businesses with fluctuating
vulnerable in periods of
omy more
business unsettlement.
This
to
designed
adopted
ago,
years
Canada, sev¬
a
plan
figures
giving
By
sources.
tax exemp¬
dividends
tion to the first $100 of
people
married
to
($200
both
own
stock),
when
people
many
with lower incomes would be en¬
couraged to become shareholders
and thus
in the
family income. These, and other movements
economy, will result in greater capacity to - buy the
basic
products of expanded industry."
If all this
were
merely
a
rather ebullient forecast of
dutiful
applause and forgetting it until the next political orator
with a gift for flashy pharse-making came along.
The
the future
we
should all be warranted in giving
trouble is that much
Mr. Stevenson is
cians of the
we
day
more
than that is included in what
saying and in what
are
saying. This is
shall in the future in the normal
course
as these. It is rather a
Democratic party must plan it that way,
joy such blessings
other politi¬
statement that
many
no mere
of events
en¬
warning that the
and see to it that
the plans are given full force and effect—and that if such
a course is not followed by the political powers that be
we shall not only faill to achieve such an economic status
but must lose a substantial part of what we already have.
Grow
or
Fail
We must either grow or fail, and we must
fail unless
we through our politicians plan our future and erect the
structure. The most unfortunate part of it all is that such
a doctrine as this no longer appears
strange to the ears of
young Americans, or for that matter strange to the ears
of many of the older Americans who would have been
shocked by it a quarter of a century ago. Such ideas as
these are basically at variance with the political and eco¬
nomic philosophy which all of us revered prior, to the rise
of 20%
of divi¬
Many provisions of the bill will
One will per¬
benefit individuals.
mit parents to
claim
a
dends received, compared to
child as a
10%
dependent even if he earns more
than
$600 —1,500,000
taxpayers
will benefit from this change.
in the
,
pending bill.
The plan proposed
would
credit
receive,
year—on
in
Several
addition,
the
5% —10%
of
a
second
dividends received. This
plan provides relief of only about
half as much as existed prior to
ers
dependent children and
with
single people with very close de¬
double taxation, we
feel, represents a real handicap
to expansion of business. This is a
capitalistic system; in the past we
have depended on risk capital for
development of new enterprises
and
for expansion of old ones.
Large sums are needed to create
jobs. It is estimated that the av¬
erage cost of providing plant and
equipment for one job is between
$8,000 and $10,000. The present
tax system makes it difficult to
attract risk capital to create these
jobs.
to
It
encourages
indebtedness,
can
In
>
by bonded
because
interest
be deducted for tax purposes.
recent
ters
corporations
themselves
finance
years
of the
over
three-quar¬
financing by industry
has taken the form of bonded in¬
debtedness.
This makes the
econ¬
have
changes
handicaps
remove
been
on
in¬
vestment abroad.
and
Two
half
a
will benefit
million
farm¬
from
changes in
the treatment of depreciation and
ers
the
soil
for
allowance
increased
conservation expenses.
■(■
Plugging Up Loopholes
In addition
to
to giving tax relief
millions by removing
many
these
plug
inequities, the bill will also
number of loopholes which
crept into the system, and
a
have
thus
save
Reed
described
50
visions to close
We
Chairman
revenue.
specific
criticisms
receiving
are
pro¬
loopholes.
vision which requires
to make
the
in
of
corporations
partial advance payments
and fourth quarters
third
taxable
the
be
would
year.
into
put
gradually,
This
effect
plan:
very
with 5%
starting
per
quarter in 1955, and reaching 25%
1959.
in
Companies with tax lia¬
$50,000 would
bilities of less than
affected—these
be
not
represent
90% of the corporations.
This
proposal would- assist tha
Treasury by spreading the collec¬
tions evenly throughout the year
—otherwise
will
we
get
all
our
taxes from
corporations in March
and June. It will, in the long run,
relatives, regardless of
help put corporations in a sounder
live—one million tax¬
financial
condition
too
many
will be affected by these
pendent
where they
—
payers
1936, except for those in the lower changes.
Medical expenses in excess of
income tax brackets, where the
relief is greater.
3% of a taxpayer's income will be
The present
most
is
refund
from business concerns of the pro¬
people sharing the sup¬
in the bill
generally follows the lines of the port of a dependent may decide
Canadian plan
except that the among themselves that some one
of them is to have the benefit of
smaller stockholder receives more
the
exemption;
foster children
favorable treatment than in Can¬
will be included as dependents;
ada. The first $50 of dividends—
full split income treatment will
$100 in 1955—would be exempt
be allowed to widows and widow¬
from taxation and the stockholder
employees in manufacturing industries.
"We will have to think in terms of a marked increase
credit
a
the
Important
made to
participate in the growth
of American industry.
of
receives
when
loss
needed.
double taxation of dividends was
not
enterprises;
for the carry¬
opportunity for
prompt tax relief in the year of
for partial relief of
plan
to risky
back increases the
under which the stockholder now
our
and
the additional year
capitalism's basic equation, as much increase in our
power to buy as in our power to produce. There will have
to be a substantial increase in the average annual earnings
of
in
possible for smaller com¬
panies to maintain their continued
which were recently re¬
holder. In the confusion over the leased by one of the large corpo¬
enactment of this proposal, the rations
showing
that
of
their
dividends-received credit to the 300,000 stockholders, 56%
made
individual was abolished and has less than $5,000 per year from all
to individuals as consumers. Even with an
15,000,000 in population, the average standard
will
share¬
the
to
share will go
"This kind of program
of
Message
Tax
increase of
can
.
changes concerning corpo¬
reorganizations
will
help
make it
give relief to
any one group, but to help all. In
recent years people in the lower
he suggested a plan under which income groups have been invest¬
the corporation would be taxed ing more and more in common
only for the earnings which were stocks. You are familiar with the
"Assuming the outbreak of no new wars, a smaller
share of total production will go for defense—a larger
living
The
rate
will
1936, President Roosevelt, in pro¬
posing a change in the corporate
tax, recognized the inequity of
double taxation of dividends, and
now.
of
\
of earn¬
ings will be beneficial.
6
page
plan in operation today, dividends
would be free from the first 20%
meaningful, that by the end of this decade, or by 1960,
we will have to be producing and buying from ourselves
about
ment
reasonable accumulation
incomes
to civilization to see
that
burden
The Tax Revision Bill
challenging fact that we and the rest
world need more than America's full work force
produce—and that it is our obligation to ourselves and
to it that every willing hand is kept
can
from
"■
.
,
.
Likewise, a shifting of the
of proof to the govern¬
in cases involving the un¬
done.
and then to keep out of the path of
it is to be maximized,
—
companies to do what larger
with well-established
companies
research laboratories already have
"plan it that way." The rank and
.
Continued
face the
us
currently the cost of research and
development work
will permit
small
progress. Our future progress, if
must be realized in the same way.
God-given plenty.
"Let
play
the
operation of partnerships. An op¬
tion
to
capitalize or write off
people just went about their business from day
fair
ensure
Democratic party—that there
in this country no
is to be
taxation of partnerships
will be spelled out in the statute
for the first time. This will facili¬
tate the formation and continued
ing
day intent upon earning whatever they could, to para¬
phrase the poet, by their own energy and as a result of
their own initiative. Government's main function was to
concerned lest
Laws cover¬
ful to small business.
decades since it came
many
particularly help¬
visions will be
to
they take, perhaps unconsciously, the low road leading to
a stagnant economy.
"I think it is the essential faith of this nation—and
the
through
depreciation and
The
istrations.
century and a half ago. We
some
Franklin Roosevelt to
have chosen
concerned lest the Republicans
of these two alternatives.
the first
cluding those of previous Admin¬
their imagination can conjure up for
this country has
even
the average
on
being
file of the
seeable future.
"I
Committees
doubt whether
even a political "opposition" spokesman would venture to
assert that his party could surpass the progress which this
country has historically recorded to generate wonder and
envy everywhere else in the world.
Yet prior to 1933 this country never did have a
into
been added.
"The other
double taxation of dividends pro¬
made
and
jobs .have
million new
several of them were recom¬
by the Small Business
of the Congress, in¬
ness;
the next half-decade with the progress
jobs immediately, and then more
by I960 some seven
bring forth—or should we say
mended
thing which
by the end of this decade. To cover the swelling ranks
of the unemployed and insure that the workers who will
be added to our labor force can find work, we must have
three million more
glowing picture of what the
a
Business
Small
Many of the revisions will be of
particular benefit to small busi¬
painters—political or otherwise—he is careless of detail.
It is not easy to give precise meaning to some of his sen¬
tences or to state his predictions in exact statistical form,
but we invite him or any of his followers to compare any¬
of our time," says Mr.
clear enough. There
Americans
more
Revisions That Will Benefit
bring forth if only "enlightened" political followers
of Mr. Stevenson, Mr. Truman, or Mr. Roosevelt could get
their hands on the helm in time? As are all great modern
the facts.
"Those facts are
paints
charges is not stated sepa¬
rately in the purchase contract.
good imagination as all political
a
half-decade "must"
next
are
would
"is that this economy
still; it must either grow or
"There are two choices.
He
have.
orators
1
K
They
Mr. Stevenson has
while to quote at some length from
central economic fact
"The
.
Stevenson,
these
not only basically incon¬
sistent with American tradition; they are equally inconsis¬
tent with the economic facts of our history.
of Franklin Roosevelt.
Continued from first page
deductible,
with those
present
under
5%
over
compared
law—
eight and a half million taxpayers
now
to
depend
help
their tax liabilities
on
finance
Individuals
operations.
their
now
are
a
on
pay-as-
basis and with this change,
corporations will by 1959 be about
you-go
close
as
to
basis
current
a
as
is
feasible.
will benefit.
Child
will be de¬
working
who support young chil¬
care
widows
many
Up to $100 a week of sickness
and accident benefits will be non¬
to
millions of
many
em¬
ployees.
Employees' pension and profitsharing plans will be strength¬
ened.
$1,200
Up to
a
year
ment income will
million
for
one
and
only
are
changes
over.
persons
Carrying charges
on
signed
aged
65
installment
purchases will be deductible
interest, even if the amount
a
the
of
the
Internal
As you
have ob¬
tax reform bill, de¬
correct
to
few
a
the
major
de¬
fects and to help the whole econ¬
both immediately and in
long run. It is quite unfair
omy,
the
to
attempt to compare it with
other plans to give immediate tax
reductions
The
of retire¬
be tax exempt
in
Revenue Code.
served, it is
dren.
taxable
These
expenses
ductible by half a million
on
cost
is
a
of
big scale.
the
bill
in
loss
of
billion, but an
important feature is that the cor¬
poration rate is continued at 52%
revenue
instead of
as
down
of
in
to
$1.4
being permitted to go
This will bring
47%.
$1.2 billion—almost enough to
Volume 179
Number 5314... The Commercial and Financial
Chronicle
(1593)
finance the entire
is
not
cost. /Thus,lit
"hand-out" to business.
a
existing
The Administration's Tax and
Budget Policy
,
lieve
can
of
You
In
spring of last year, we
confronted with the
prospect
a
of
large deficit
very
the
gram
expenditure
of
the
suggested
just
the basis
on
and
tax
should
pro¬
than
billion.
And
tures
and
was
be
though
profits
did
we
not
tax,
a
re¬
1954
fiscal
—
duced
$7
below
and
reduction
of
On
the
ture
could
be
reductions
taxes
in
mean
taxpayers—and
individual
a
savings to
loss of
a
the
revenue
government—of
full year. The
a
$3 billion
elimination of
the excess
:$2
They
taxes.
income
in
made.
welcome first steps towards
The
profits tax amounts to
billion.
The
tax
revision
bill
will
involve additional savings to
taxpayers of about $1.5 billion.
The
tion
policy of the
is
to
Administra¬
back
pass
1941
were
with
time,
the
At
that
tax
rate
now.
bracket
to
taxpayers
Rate
reductions
for in any
as
rap¬
this
cqn be done while
sound budget posi¬
reductions in expendi¬
a
tion.
The
tures
of
in
were
in
order
in
three
excuse
from
all
It would
with
country
his own
cost
of
of
the
revision
the
total
tax
reductions,
amounting to almost $6% billion,
while
cit,
at
the
which
time the
same
was
over
$9
of
few
which
areas
for
we
further
have
re¬
analysis
recommendations.
bill will have
and
The
far-reaching
the whole country through the re¬
moval of tax road-blocks to eco¬
nomic growth. Once this revision
bill
has
look
been
reductions
tional
they
adopted,
making
forward
we
to
in
tax
rates
reductions
in
can
further
addi¬
as
government
billion,
bringing
total
tax
reductions
close to $7.5 billion.
tremendous reduction,
ring
in
In
short
a
view
ductions
of
in
under
are
nomic
the
of
large
very
it
way,
is
the
A
will
jectives
of
is
of
one
eco¬
down
fully
budget is
balanced
remain
re¬
which
sound
budget
a
time.
policy to bring taxes
balanced.
and
period
is
occur¬
expenditures
before
even
This
all
one
taxpayer
Federal
to
income
that
a
children
$5,500
the
ob¬
coast-to-coast
investment
a
distribute
the
remaining
tax
burdens fairly among all citizens.
look forward
fam¬
We
would
syndicate
of
banking
firms,
jointly by Drexel & Co.,
B. J. Van Ingen &
Co., Inc., Blyth
& Co., Inc., and The First Boston
Corp., made public: offering on
000,000
a
issue
new
of
$233,Turnpike
Pennsylvania
bonds, 3.10%
.
revenue
series
of
1954.
The
bonds, maturing June 1,
priced at par plus ac¬
crued interest to yield 3.10% to
maturity.
The
syndicate
was
1993,
are
confidently to
the enactment of the tax revision
a
tax
very
great
would
dislocation
a
which
has
too
cause
in
the
been
econ¬
artificially,
supported by government deficits.
We
have
noted
that
between
$6V2 and $7V2 billion" in
tax
cuts
are
likely to be made in the first
six
months
not
feel
tion
of
that
requires
reduction
for
both
the
and
this
the
present
an
The
next
current
year
$4
year's deficit
billion
duction
if
the
tax
deficits
fiscal
are
do
situa¬
emergency
program.
the
We
year.
estimated at about $3
next
even
year
Additional
if
redeemed
on
or
after
of
June
1989.
The bonds may not be
deemed prior to June 1, 1959.
The
the
Northeastern
a
2,
re¬
Extension
of
Turnpike will
modern, limited-access high¬
beginning at Plymouth Meet¬
ing
Philadelphia,
near
Delaware
River
in
north of
on
Extension
Lackawanna
an
the
and
inter¬
County,
This
for
the
which have
weeks
sonal
this
reason
several
been
made
increases
that
we
suggestions
in
in
recent
the
tax
by
$100,
$200,
and
$400 above the present fig¬
artery will
nearly 70% of the state's
or
181
communities
Areas
and
about 55%
enues
Copper
is
since 1946.
is smaller
Anaconda
the
company's
largest
customer,
gas revenues,
The
ware
con-
c r a n
and
t
Metropolitan
o n
provide
easy
access to
regions In the north
However, Anaconda's contribution to
than in past years.
now
must
Montana Power
pay
rev¬
Under existing contracts,
minimum of $1,550,000
a
company have
been at least 3 Vztimes that much in
since
the
1946
and
Power has
Great
been
a
year
every
increased in each year.
amount has
Montana
serving natural gas to the Anaconda smelter at
Falls since
1950.
»
,
Anaconda's Greater Butte
by
Project, which
copper
recovers
ore
block-caving method that is almost entirely mechanical and
a
electrical, began production in 1952, opening
future for the state's
put
of
mining industry.
the
Pennsylvania
U.
approximately
Reserves
Greater
ventional
90,000,000
estimated
are
at
Project
are,
Butte
35
up
entirely
an
new
Production from the Kelley
plant
copper
is constructing
now
in
metallic
addition
and
a
S.? Route
ore.
Falls
aluminum rod
an
Montana Power will
will supply surplus power
with
the
18,
connecting
Turnpike at
north
of
available to the
plant when Bonneville Power Administration is
situation
Pennsylvania Extension
Jersey Turnpike.
completion of the new
bridge in mid-1956, the last link
will be forged in a chain of
super
against
protection
sale
with
Montana
the
Power
Bird
to
respect
the
i
'
industry
copper
York
sumably
Jersey,
Pennsylvania,
Indiana to
Interest
Ohio
and
these
Society
before.
The
to
from
free
legal
counsel,
Federal
from
income
of
exempt
taxes
and
within
taxatipn
Commonwealth
.'{.3
is
the
Pennsylvania.
■
plant
Security
Analysts
analysts
(from
less
sometimes
are
which
attention
considerable
oil industry
the
critical
of
while
now
oil
and
resources:
match
block
(Special to The Financial Chronicle)
power
Lawler
with
has
Lucas,
—
become
Eisen
&
George
affiliated
clude
year
Montana
serves
Exchange.
may
.
and
(Special
ST.
Sloan
to The
Financial
is
now
&
Loren
connected
Co.,
316
four
with
North
state'slumber
plants
manu-
Newly developed industries in¬
is
increasing its already-substantial
new
industries.
An
extensive
gas
new
bridge
River
will
(Special
to
The
LINCOLN,
Financial
Neb.
—
across
be
a
the Dela¬
company's capital structure is approximately
as
follows;
Millions
$57
45%
Debt—Interest Bearing
7
Common
Stock
16
Equity
13
36
six-lane,
Chronicle)
1953 and dividends from $1
Charles G.
down
21%
with
obtaining
a
North
13th Street.
$126
Share earnings have increased from $1.94
&
Co.,
134
to, $1.60.
1954
if
100%
in 1946 to $2.63 ia
In 1953 the coippany brought
of the revenues to the common stock.
expected in
the
company
An increase in
is
successful
rate increase, in a case which has been appealed to
Supreme Court of the state.
,
i
6
46
Preferred Stock
is
Holyoke
.
Percentage
Long-Term Debt—Non-Interest Bearing
earnings
Ellis,
.
re¬
advertising campaiga
Total
With Ellis, Holyoke Co.
.
by next fall expects to have plenty of gas and power
Long-Term
W.
the
$2 million
smaller
Staff
Chronicle)
Mo.r^-
LOUIS,
Cruttenden
to
a
be undertaken at that time.
The
Cruttenden Adds
least
at
,
years,
hardwood, panel board, prefabricated log homes,,
Power
Available for
Stock
plant and
The-
and three.
under construction from
built
Match has
^
f
■
duction, talc operations, metal fabrication and paint manufacture.,
Waeckerle,
Midwest
Diamond
•
'y:\
'
being found for
are
uses
and telephone poles, etc.
members
the
New
is
pre¬
wallboard, chrome operations, tungsten mill, fluorspar pro¬
Inc., 916 Walnut Street Building,
of
is
products pipeline
Billings to Spokane.
timber
,
Montana
modernized in recent
or
an
above
Anaconda,
to
million barrels of oil 'last
large oil refineries have been built
facture laminated
CITY, Mo.
front
power
is of growing importance in Montana.
state produced nearly 12
With Lucas, Eisen Co.
KANSAS
.
*
by curtailing:
expenses
purchasing
and
'
'
for
market
large proportion of industrial load.
The
bonds, accord¬
of
devoted
because
Power's
Chicago, 111.
near
on
New
ever
Pacific Northwest and in Utah and
President Corette in his recent talk before the New t
proofing."
England States,
M.
in
Fort Peck and Canyou Ferry are further examples of "depression-
summarized)
York,
than
Company's ability to cut
steam-electric
highways extending from Port¬
land, Maine, through the New
New
recession
of surplus power in the
Bristol,
Upon
1
the Great
serve
as
unable to supply the latter's full requirements.
of the New
ing
con-
rolling mill for sheet aluminum at Great
Falls to process this metal.
Falls operations and
Columbia
the
at
the
to
Columbia Falls in northwestern Montana, which
near
mill
.
50,000-ton aluminum reduc-
a
production in the spring of 1955, also
wire
ore
copper.
Operations
supply.
course,
15,000 tons of
of
pounds
years'
of
mining of higher-grade
Courtright has become connected
sections.
?
increase of
an
for electric service. However, total revenues from the mining
year
skirt the
the popular Pocono Mountain
resort
and
and natural gas in 29 cities and towns, plus
areas
tributing about 27% of electric and
Allentown-Bethlehem and WilkesBarre-S
;
square
Broadway.
new
the anthracite
per¬
exemption in the individual
income
even
for
90,000
miscellaneous services in Missoula and Superior.
and
structure
Scranton.
Administration.
Is
of
area
Electric service is provided in
adjacent rural
will be in
Pennsylvania
a
section
program
of
decreasing to the principal amount
way
re¬
share
The bonds are subject to re¬
demption at 103 if redeemed on or
prior to June 1, 1964, and at prices
be
tax
commission's
extending northward to
It
an
Montana is such that today Montana Power seems to have greater
level
pike.
approach
excise
the
tax cuts at the present timfe would
■oppose
serves
containing about 448,000 people,
population.
Thus, the
high
bridge across the Delaware River,
linking the Pennsylvania Turn¬
pike with the New Jersey Turn¬
now
billion, and
will
is ^enacted.
bonds will be used to finance the
110-mile Northeastern Extension
and
jeopardize the entire
the
;
Company
•
reduction
omy,
miles
...
Power
Anaconda
the
Administration. awarded the issue by the Penn¬
rapid curtailment of sylvania Turnpike Commission.
government expenditures without /; Proceeds from the
sale of the
But
great future."
a
Montana
bill.
year, over
headed
7 of
prosper¬
farms, mineral treasures, diversified industry, bustling cities
and
River Bridge Construction
April
As President Corette of Montana
rich, growing region with
a
per, day by the last half of 1954, making possible an annual out-
Revenue obligations reoffered to
public at par to yield 3.10%.
Represents financing for Northeastern Extension and Delaware
A
production
including
Mine is expected to be at the maximum rate of
are
brought
into
appropriate reduc¬
tions in rates, it will be
possible
With
$233 Million Bonds to Nationwide Syndicate
382
state
sight.
Pennsylvania Turnpike Commission Awards
in the last fiscal
year, is estimated
to be less than
$3 billion in the
next fiscal year.
The bill for reduction of
excise
taxes now before the Senate
will,
if adopted, lead to a
further loss
of revenue of almost
$1
ous
tion
defi¬
copper
the
re-r
benefits both to the millions of in¬
dividuals directly affected and to
exemption to
mean
three
exceeded
billion
"it is
into
come
neces¬
already made and in sight
permit
have
three million tourists last year.
Anaconda
adoption
vision
income tax until their in¬
pay no
come
industries
new
expenditures
An increase in the
$1,000 would
which
a
later
imposed.
the
Many
Power recently stated
government."
served
attempt to relieve bur¬
dens
this
exception
in¬
not
privi¬
anyone
in
sary changes in the structure
the tax laws, with the
exemptions—are called
ily
expenditures
and
—
in
creases
that
live
bill will make most of the
com¬
500%!
.government
as
$2,700
to
The
rate was 4%. On this
comparison,
the exemption has
gone down 6%
and
the
tax
rate
has
gone
up
taxes.
maintaining
far
as
10%; it is now 20%. And
in 1940, the last year before
Pearl
Harbor, the exemption for the
family with three children was
$3,200 and the first bracket tax
through tax reductions savings in
idly
$3,000
first
his
was
basis of these
expendi¬
the Jan. 1 tax
reductions
lower
exemptions
as
and
war
wants someone else to
pay
fair and just share of the
will find
you
second
one
family
average
total
pared
$5
the' 1955
an-
children,
the
back
fur¬
reductions,
were
to
for
take
you
that
his
carry
In
unassuming
but
inspiring
of young American citi¬
I simply don't believe for
leged
with three
to
burden.
courage
zens.
if
spent, wisely
But every real
proud
of the
the
the
$500,
exemption
re¬
than
more
billion is estimated
iiscal year.
by
from
is
wants
be
economically.
different for single and mar¬
ried people and
dependents. But
those
a
raised
he
to
share
I have seen countless ex¬
amples of American pride and of
was
tax.
being
are
projected
•originally
ther
year
was
Congress
9%, oil and
construction has started on a $62,000,000 aluminum
plant. It is
perhaps not generally realized that the state is the third largest
in the Union.
Its beautiful mountainous areas attracted
nearly
and
collected
fair
peace,
exemption of $600
effect since
it
The State of Montana has shown
rapid growth in recent years—since 1950 population has
gained
every
taxes,
which had been in existence
since
1944. Prior to
1944, the
current—
billion
when
Republican
By OWEN ELY
to
on
47%.
their
pay
American
has been in
person
went
phosphorous, chrome, tungsten, fluorspar and lumber plants, and
cent
re-:
exemp-'
in
He
of
to
share
1948
even
like this
Expenditures for the
rate
all.
at
izens
the
present
Utility Securities
in¬
any
Montana Power Company
and
for
paying
Naturally he wants all fellow cit¬
that
calls
from
"The good American doesn't ask
for favored position or treatment.
which
it
Public
say:
you
month ago that tax burdens
be relieved much in the
The
The new Administration
recommended, and the Congress
voted, a six-month extention of
excess
to
tions.
duced.
the
speech
ductions, not increases
expendi¬
could
his
in
to main¬
the
deficits
in
tax
come
shows
pro¬
jected expenditures for fiscal 1954
were $4 billion
higher than 1953.
The first decision
tain revenues until
Americans
Senator
they had been
imposed. We agree with this gen¬
eral
princfple, but the record
prior
$9
that
order
administra¬
This deficit turned out to be
tion.
more
a
Eisen¬
cut
who has proposed the
increases in
exemptionSj
largest
the
were
recall
President
March
on
believe that the way to make the
was
to
excuse
millions of
reductions.
will
George,
tion.
be made should take the
rate
month.
a
15, said he fa¬
vored
cutting taxes when they
could be cut, but that he did not
conditions, but we be¬
tax
reductions, when
they
budget policy of the Administra¬
$450
hower,
that
form
I want
to turn
finally to a brief
discussion of the general tax
and
of
of
ure
$600. We not only oppose
any further loss in revenue under
65?
JAl
•/*
in
the
,-j
66
The Commercial and Financial Chronicle... Thursday,
(1594)
and
intention
of
statement
ten
000
shares; Texas Gulf Producing
7,000
shares;
United-Carr
Corp., 3,600 shares.
Co.,
price agreement.
National Sales at Peak;
Fastener
Mutual Funds
"INVESTMENT
'Uf
-it' possible to direct the
small sav¬
ings" of millions* of people into
equity.,* irivesfment in American
business
and
help to maintain
healthy capital markets," Edmond
du Pont, senior partner of Francis
».
■
1
By ROBERT R. RICH
■.»
name
its first
of
CLOSE
AT THE
month of
full
operation under the new
broadened
and
investment
policy voted by shareholders on
Feb. 23, the Capital Growth Fund
of Group Securities, Inc. had as¬
sets of $3,200,000 invested in the
of
stocks
common
different
84
companies. Some 14 different in¬
dustry groups were represented,
of which the largest were build¬
ing, chemical and drug, electron¬
ics,
entertainment,
investment
company leverage stocks, mining
and metallurgical, petroleum and
natural
gas, and steel.
commenting on the selec¬
tions, Distributors Group, Inc., the
In
investment
adviser
and
sponsor,
stocks held
states that the
are
of
three different types currently
in
position, (1)
"Capital leverage" stocks (due to
the outstanding bonds and prean
attractive
price
ferred stocks of their issuers)
(2)
"price
leverage"
price range
and (3) "Special situation" stocks,
which,
because
of
exceptional
prospects for the type of business
they represent, corporate devel¬
More
volatile
stocks
in
expected
to
erages.
CHEMICAL
companies
FUND'S
business in 1954 with
pating
antici¬
levels of sales.
Several
of
the
larger portfolio
companies have already reported
a
substantial upturn in business
during March.
■la
reached
the
Profits
Tax on Jan. 1, 1954
permit increases in earn¬
ings for
many
portfolio
com¬
panies— providing there
is
no
payments
shown
ready
trend.
of
15
have
distinct
a
the
one
a
FOLDER AND
the
pects,
tinue
NATIONAL SECURITIES &
CORPORATION
RESEARCH
al¬
to
York
be
in
its
13.6
com¬
portfolio
earnings.
than
are
their
-*■■■■■■■■
THE
REDUCED
of
Howard
made
profit,
more
Funds'
available
in the
Shares
tax-exempt
are
certain
&
separate purchases aggre¬
gate $25,000
month
or more
within
period, pursuant to
a
a
13-
writ¬
of
investments
with
March
on
63%
31
Dec.
31,
Common stock additions were:
Chrysler Corp., 4,000 shares; Den¬
&
Rio
Grande
Western
Rail¬
road, 10,000 shares; Northern Nat¬
ural Gas Co., 12,000 shares; Smith,
Kline & French Laboratories, 4,-
or
1938
*200
tSjodon 3"und
liquidations
year were
Inc.
23% below liqui¬
-
Inc.
Engineering
Firm's Fund Film
Corp.
Awarded Prize
Chemical
&
Instrument
Corp.
850
Tracerlab, Inc.
&
Company
prize
Chalmers
America
Mfg. Co.
will
be
Dow
*100
75
180
Chemical
Co.
next
Tuesday for its mutual fund
film,
"New Opportunity," in an
competition sponsored by
of
Corp.
Goodyear Tire & Rubber Co.
*300 Harshaw
Chemical
70 National
*100
Peabody
Kidder,
r
Allis
1,350 Vitro
Lead
Co.
awarded
the
third
annual
Co.
Phillips Petroleum Co.
85
*100
80
Union
Carbide
Carbon Corp.
&
Aircraft
United
Corp.
Westinghouse Electric Corp.
issues
♦Indicates
not
represented
pre¬
viously.
whicn shares of Atomic Develop¬
ment
Mutual
Fund, Inc., may
the public:
be
offered for sale to
Alabama,
Arizona,
California,
,
Connec¬
Delaware, Georgia, Idaho, Illinois,
Indiana,
Kansas; 1 Kentucky,'
Louisiana,
ticut,
Maine, Maryland,
Nevada,
New
Massachusetts, Missouri,
New Mexico,
New
Jersey,
Oklahoma,
Oregon,
Pennsy.vania,
Island, South Carolina, Tennessee,
Texas,
Utah,
York,
ton,
West
Vermont,
Virginia,
Washing¬
GROSS
SALES
of
Dividend
35%
were
in
greater
The
than
50%, it was stated.
Central
PUTNAM
]N Aassachusetts
Investors Trust
formerly a Vice-President
of Trans-Films, Inc., a New York
con¬
months
of
1954
was
Nearly
year
in
the
to
a
mutual fund sponsors
making
group
Conference
it
ber,
is
in
in
Boston
last
Octo¬
cartoon-style
Century Shares Trust
Putnam Fund Distributors. Inc.
50 State
Street, Boston
Canada General Fund
Fundamental Investors, Inc.
Woe
Diversified Investment Fund, Inc.
Bond Fund
OF
BOSTON
Manhattan Bond Fund, Inc.
A prospectus
relating to the shares of any of these separate
investment funds may
A Mutual Investment
Prospectus
or
Company
Specializing in Securities
of the Chemical
he obtainedfrom authorized dealers
VANCE, SANDERS & COMPANY
Industry.
111
upon request.
PROSPECTUSES
BOSTON
-
f.BI RSTAD I
c\
CO.
INC
NEW
6i
?y Broadway
.New York (
YORK
Broadway
LOS
CHICAGO
lao
South LaSalle Street
YOUR
ON
THESE
LOCAL
MUTUAL
INVESTMENT
FUNDS
DEALER,
OR
Cleveland
Chicago
F.
AVAILABLE
FROM
DEVONSHIRE STREET
2io
ANGELES
West Seventh Street
Los Angclcj
HUGH W. LONG AND COMPANY
San Francisco
Incorporated
jtv
Westminster
I
at
of
at a break¬
preview at the Mutual Fund
fast
50%
period of 1953.
commer¬
films.
shown
a
first
and
greater than in the corresponding
&o4ton
of industrial,
producer
cial and television
periodic
purchase program
in¬
augurated in 1949. The number of
new accounts opened in the first
three
Fox-Mar¬
minutes. Mr.
12
tin was
tributing factor to this upturn in
sales was the purchases made un¬
der the Dividend Thrift Plan, the
Growth Stock Fund
"brain-child" con¬
Milton
Fox-Martin,
of Kidder,
Peabody's
Mutual
Funds
Depart¬
ment, is a 35 millimeter, blackand-white
slide film that runs
more
A
a
by
manager
March 1954 gross sales exceeded
by
film,
ceived
today.
1953
firift,
accepting the award.
gross
March
Sales
Amyas Ames, partner of the
the
quarter of
for
York
New
about
Massachusetts Investors
-
Executives'
Club
and
the
National
Visual
Presentations Association, with
Shares, Inc., the $133,000,000 mu¬
tual fund managed by Calvin Bul¬
lock,
Amyas Ames
Milton Fox-Martin
Virginia.
the
those
FUND
Instruments,
1,600 Nuclear
(
^/eonye
on
said
Hare
during the first quarter this
Net sales, rep¬
sales less repur¬
chases, were 63% greater than in
the first quarter of 1953.
J*:r
£7/ie
$158,478,000
Dynamics Corp.
Hydrides, Inc.
Metal
resenting
3, PA.
reaching
March 31.
advance,
Co.
Instrument
Consolidated
firm made
investment dealer
PHILADELPHIA
seven
record-
their
continued
Mr.
the
of
assets
comprising the series
breaking
1954 than in the
same
1953
period, according to
announcement
by
the
Bullock
Prospectus from
your
Total
funds
Corp. of America
Beckman
first
FOUNDED
the
last year.
9,
Rhode
on
1953.
,
ver
whose
holdings
a
compared
now
organizations
STOCK
George Putnam Fund of Bos¬
$75,000,000 "balanced" mu¬
tual fund, were increased slightly
during the first quarter of 1954,
representing 64% of the fund's
ton,
non¬
the-$14,479,000 sales
first three months
with'
for
360 General
of
industries."
for
1953,
Following is the list of states in
offering
Eaton
Vanadium
900
keep
'piece'
a
own
of
quarter
rise of 14% compared
a
1953 quarter.
*300
man
diversified
final
and
reported
sales
383,000
the
Ltd.
Industries,
in¬
dations in the corresponding
800
to
Oil
an
represents
of 42% over the $11,-
crease
Lindsay Chemical Co.
*1,000 Atomic
buildings
to
McGee
the
*1,500 Rix-Athabasca Uranium Mines, Ltd.
growing need on the
and
COMMON
The
years.
public
to
investing
for
industry
tools
total
or
a
individual
prices applicable to single sales of
$25,000
field
Kerr
of
managers
Pronto Uranium Mines, Ltd.
85
*400
shares is almost unlim¬
America's
1954
prevailed
X^AHR
If/
*200
secu¬
provide a single job for the av¬
erage worker in industry today.
Ownership
of
investment trust
shares provides a means for an
lower
are
which have
This
*100
employed in a modern
It takes between $15,000 and $20,000 of expenditure to
one
selling about
historically and in recent
■ ■■■■■■■—■■■■■■■■■WW
the
pros¬
estimated
These ratios
those
the
than
♦5QQ. Algom Uranium Mines,
Biockson Chemical Co.
and
sors
*2,000 Centre Lake Uranium Mines, Ltd.
850 Gunnar
Gold Mines, Ltd.
steel plant.
favorable
Nov.
Re¬
spon-
funds.
son,
since
Corporation,
search
industries made up
Fund
Vice-President,
Hare,
of National Securities &
holdings were du Pont, National
Lead, General Motors, Standard
Oil (of New Jersey) and Atchi¬
for additional
funds to keep pace with techno¬
logical improvements," du Pont
said. "It takes $96,000 to provide
portfolio stocks con¬
priced attractively in
times
the
and
part
relation to their earnings. Chem¬
ical Fund estimates that the stocks
Established 1930
120 Broadway, New York 5, New
these
better
"There is
higher annual rate.
Despite
PROSPECTUS
knows
ited," he declared.
either paid higher divi¬
dends during the first quarter of
1954 or adjusted their payments to
FREE INFORMATION
"No
W.
E.
At the end of the first quarter,
five
largest common stock
the
Mutual
$16,474,000, a new high;
quarter, according to
to
for any
Co., 600 shares.
have
$4 billion,"
over
Wilmington broker said.
are,
panies
WRITE FOR
funds
mutual
little
a
company
upward
portfolio
curities Series of
5,000 shares; Transamerica Corp.,
12,000 shares; Union Pacific RR.
rities salesman where the savings
decline in general busi¬
activity from current levels.
Dividend
SECURITIES
SERIES
in
ments
ness
National Se¬
mutual in¬
vestment funds in the first
three months this year rose
Sales of the
liquid savings oJ( in¬ 1953 are listed below. Total net
dividuals in the country today are assets were at $773,251 on March
about
$200 billion, and invest-, 2,. 1954: "
marked
NATIONAL
Co., 12,000 shares; Kalamazoo
Vegetable Parchment Co., 11,000
shares; Merck & Co. Inc., 15,000
shares; Monsanto Chemical Co.,
"The total
Earnings expectations are favor¬
able.
The expiration of the Ex¬
cess
ical
ment
of United Funds, Inc.
tives
should
A MUTUAL INVESTMENT FUND
group
Cash-Ins Down 23%
Dow Chem¬
were:
Topeka and Santa Fe. Five
approximately
55% of the common stocks: oils,
"The growth of mutual funds electric utilities, railroads, chem¬
has been spectacular. 4ir the last icals and drugs, and insurance.
;
five years, andl the future holds
promise of even sharper gains," COMMON STOCK additions to
he told more than 500 representa¬ the portfolio of Atomic Develop¬
portfolio
to good
some
of
Funds, Inc., investment
with assets of over
$130 million, du Pont said that
the mutual funds industry is "only
scratching the surface."
trust
high
new
conference
sales
United
act
look forward
annual
the
■
■
investment
Co.,
City, Mo., to address
In Kansas
better,
price-wise, than stock market av¬
are
sons
&
Pont
Eliminations
banking and brokerage firm said.
current technical price
or for other special rea¬
opments,
position,
du
I.
lower
the
companies make
April 8, 1954
Parser, Elizabeth 3, New Jersey
and
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1595)
based
on
the result of a survey
of mutual fund shareholders con¬
ducted
by
Kidder,
Peabody
&
Company.
From
creasingly important role in the
planning of families.
"It is only proper that the pub¬
financial
lic should have
the
in
survey,
which
it
industry-wide sta¬
Kidder, Peabody determined ages,
occupations
and
incomes
of
a
tistical and other data about such
statistical
lic
Sample of mutual fund
shareholders, a "story line" was
developed with the cooperation of
Lex
Chiquoine and Doremus &
Company, the firm's advertising
.agency. Facts, figures and charts,
designed to give prospective in¬
vestors
about
essential
mutual
gested form,
information
funds
in
National
The Pub¬
Association
the
of
Program
Invest¬
of
Companies is designed to be¬
come
central
a
tion about
and,
of informa¬
source
investment companies,
such,
sig¬
nificant service to prospective in¬
as
will render
a
vestors and to the business itself."
Walter
the
E.
Brunauer, President
National Visual
Sales
net
assets
491,226
Director
as
Educa¬
Fund's
fiscal
$27,835,082
4,019,840 shares
about
the
award,
"May I congratulate
said,
fine
you on a
after
contribution to the field of effec¬
tive
visual
presentations."
Brunauer referred
to
the
Mr.
adjustment
film
as
"sleeper" springing up from
among the hundreds of films sub¬
mitted by large corporations, film
producers and agencies.
a
A
.
number
film
by
and
their
the
record
by
First
mention
no
that they
so
fund
any
of
Kid¬
was won
Company, for
second
prize
be
can
dealer.
or
prize in the annual
petition
use
Copies of
shown by the
being
make
der, Peabody,
used
for
sets
com¬
by The Reardon
film
paint, and
was
given to the
Metropolitan Sunday Newspapers.
a
on
order
appointment
Court
of
March
in
31,
total
dent
to
undertake
United
an
The
States.
made
by Presi¬
and
was
confirmed
Eisenhower
by the Senate.
Judge Baar
and
active
mem¬
of Selected American's board
of directors since 1941
that,
was
and, before
director of Selected's
a
University of Chicago in
1912, and his law degree from the
same
university, cum laude, in
member of Phi Beta
a
Kappa and other honorary socie¬
ties.
the
wrote
the
on
first
book
1917 Federal
pub¬
excess
profits tax law.
Shortly
Industry Program
ice
Stress Information
.mation
[
■
of
the
ac¬
National
Investment
Com-
panies
have
not yet
been
worked out, a
general pat¬
<
paid
paid
for
THE
SEC
became
tern for the
b
Reorganizations," and of numerous
articles in his specialized field of
Federal taxes.
be
been revealed
cago and
to The Chron-
by
Washington, is employed
large corporations. It is
many
known
"counsel
as
10The first ob¬
because it is
jective will be
as
make
in¬
offices in Chi¬
frequently retained
so
associate
counsel"
for
in
counsel
tax
cases
appealed to higher courts.
A
submitted
stock
to
on
the
the
Edward
Burr
B.
the
com¬
United
income
net
quarter
to
the
of
announced
31,
outstanding.
of
share
of
income,
1954
the
the
in
amounted
1953
to
shares
net
had
assets
Dec.
share
sales
of
to
a
1.6c
profit
of
sales
on
decline
a
stock
mon
mated
stock
in
While the
the report
Uhited
March
$37.08 at
of
share,
a
$5.05
or
com¬
tor
ber
is
a
the
a
at
asset
net
value
about
erations of
their
and
and
the
investment
role
in
the
op¬
companies
individual
the
family financial planning in
country's economy.
The second objective will be to
measure
public viewpoints toward
services
the
of
investment
com¬
panies and to report findings back
the
to
companies
enabling them
to render constantly more effec¬
tive
its
of
PURCHASES
Securities
tion-Wide
fund
mutual
during
"Ben"
Edward
Burr,
who
will
formation
on
included
Sales
Electric,
May 3,
officially
when
the
Stocks
N. A. I. C.,
to
whom
he reports, has completed
studying the staff plans, and has
incorporated
the
modifications
they believe may be necessary to
the
of this new,
success
wide
effort,
sponsored
and closed-end
companies.
open-
industry¬
by both
investment
eliminated
"The
program," Mr. Burr said,
properly termed by the indus¬
try leaders to be a 'Public In¬
formation
is
Program.'
Its mission
approach which reflects
that
an
belief
a
public is most
confident public.
| "The investment
the
our
an
informed
likely to be
United
confidence.
Fuel
National
States
Their
companies
deserve
of
public
service
is
a
genuinely useful service which,
year by^ year,, i^ playing an in¬
shares
$26.22
1953
31,
then
shares
and
had
51.37%
Securities
CORP.
Petroleum
nounced
its
with
at
$22.51
number
its
of
ferred
stocks
43.77 %
at
assets
Nov.
last
28
bonds,
in
pre¬
compared
cash,
or
Feb.
with
1953.
30,
the
net
asset
31,
Corporation
Investing
started its 25th anniversary year
with first
new
shares the highest
since
the
mutual
fund
sales of
have
been
quarter
they
operations
in
According to an announcement by Francis
Randolph, Chairman of the Board and
President
the
of
shares
added
of 71%
sales
of
mutual
to
up
fund,
$1,991,000.
sales
for
$3,418,000
last
over
an
of
in¬
year's first quarter
Repurchases of shares
by the fund also were higher in the period,
sales
but
shares
of
exceeded
repurchases
were up 66%
over the
last year.
Despite the decline in general business
activity, Mr. Randolph pointed out, in¬
by
$2,685,000
first
been
and
interest
growing
time.
three
in
at
and
of
shares
in
in
fund
accelerated
an
Sales
months
mutual
the
increases
successive
Common
the
income
ties
the
Stock
from
three
from
for
income also
the
months
$25.07
March
for
pace
have
each
shown
the
of
were
a
last
year's
were
the
a
sales
net
peak for
fund
is
well
of
$6 241,095,
vary
securities
of
sale
$747,266.
i
Net
Bankers
Head
7,708,000
any one-year
on
the
way
period,
toward
GROSS
SALES
in
of
10,000
Superior Oil Co
6,700,000
Television-Electronics
Skelly Oil Co
Elec. Bd. & Sh.
80,000
Paid-up
47,500
Sig. Oil & Gas CI. A
10,000
Seaboard Oil of Del.
1,235,000
1,155,000
18,000
Thompson Pro., Inc.
Gulf Oil Corp
1,071,000
980,000
months
and
three months'
of
were
17,500
20,000
National Steel Corp.
20,000
Newmont Min. Corp.
20,000
Pitts. Cons. Coal Co.
980,000
960,000
910,000
India,
land
Authorised
the
three
$4,003,297
in
1,600,000
1954
first
to
any
Bank Stocks
in
First Quarter 1954
26,
Pakistan,
Copy on Request
(To'be released shortly)
Ceylon,
Aden, Kenya, Tanganyika,
-Uganda, Zanzibar, and Somali-
2,251,500
2,112,000
period since
the inception df the Fund, Paul A. Just,
Executive Vice-President, Television Shares
Management Corporation, reported Tuesday.
The sales record, Mr. Just said,-, was ac¬
the
amounted
largest for
Government
City
Burma,
'
Co.
United Gas Corp
44,000
17 N.Y.
Bishopsgate,
London, E. C. 2
Branches
79,000
the
Office:
1,110,000
Amerada Pet. Corp._
to
ANALYSIS
AND
Kenya Colony and Uganda
$7,545,714
Missouri Pacific R.R.
Co. 1st & Ref. 5%
companies may
companies.
of INDIA. LIMITED
he
setting a new record in 1854.
provide a good indication of
results for the past year. Individual
COMPARISON
Value
U. S. Treas. Secur...
Investment
compilation by Blyth of averages for certain of
NATIONAL BANK
Market
1,000,000
underwriting profit in 1952 the
large gain for the year 1953.
guide of operations of the major
1954
$7,500,000
a
47.3%
$310.99
the importance of different
lines, but the above averages provide a good general
insurance
expenses
HOLDINGS
31,
47.3%
from the trends, depending upon
interest and royal¬
after
Par Value
41,000
+59.5
improved but the dramatic change was in the under¬
the operating
$46,533,674.
record
$7.91
'$334.59
the leading fire and casualty groups
per
and
state and municipal taxes, was $251,414.
Net assets as of March 31,
1954 were
$51,121,359
and on Dec. 31,
1953, wer»
March
$19.83
$8.96
^
1,800,220
the
on
was
dividends,
PRINCIPAL
5.85
$31.64
Investment Income—
show
The foregoing
$5,993,000
compared with $22.52
the
period,
15.03
writing results.
increase
$4,587,684.
1953.
31,
profit
6.99
16.71
—
—
As compared to the nominal
above averages
Shares
added,
Fund
Net
for
was
has
high.
and
$247,443,
after
deducting
Stock, were equal to
of
Dec.
on
$1.98
18.93
—
Liquidating Value
assets,
Preferred
share
of
months
three
Net
to
of
quarter
some
dividends
the
Net
37.5%
Indicated Dividend Rate
Ratio
compared
share
1953.
31,
shares outstanding as
1930.
F.
crease
for
^
8.03
______
an¬
value
is
General American In¬
vestors
Company,
Inc.,
Frank
Altschul,
Chairman of the Board, stated that as of
March 31, 1954 net assets were $51,121,359.
After
STREET
36.7%,
$19.71
Operating Earnings
1954
of
report
Ratio '
+13.6
60.4%
of
GENERAL AMERICAN INVESTORS
In
\
Percent
Increase
*
$441.28
Indicated Dividend Rate
America
of
March
per
Dec.
$501.43
Federal Income Taxes
$23.39
•;
the
at
$26.43
at
1952
*
*
:
•'
OF AMERICA
that
stock
/
57.4%
Investment Income
is
938,000
on
same
Corporation
today
common
estimated
1954
with
by
prepared
•
Written
Change in Equity
outstanding.
PETROLEUM
of
share
the
"
•
Ratio
Loss
Field,
Pfeiffel
Gas,
on
Premiums
Net
dates.
31,
compared
on
.
Underwriting Profit
March
per
outstanding
Dec.
at
at
at
operations is demonstrated
1953
Ruberoid.
Last
informational-educational,
Electric.
stock
gain in underwriting results.
a
casualty
Period Ended Dec. 31
INTERNATIONAL
common
in
Operating Results
International Corporation an¬
today that the net asset value of
estimated
&
International
Marshall
were
McGraw-Hill,
vestor
"is
Gas
Cork,
1,000
Congoleum-Nairn,
3,600
2,300 Interlake Iron, 1,500
Paper, and 1,000 West Penn
commenced
the
Ma¬
Armstrong
Steel,
final until the Public Information
of
Shoe
American
1,000
1,000
Bethlehem
BROAD
Committee
United
Corporation.
chinery
launched,
cautioned, however, that these ob¬
jectives should not be regarded as
is
program
a
3,000
Nation-Wide
become the Director of Public In¬
Inc.,
by Calvin Bullock,
period ended Feb.
of Lone Star Gas
Brewing,
service.
Na-
shares
months'
500
and
Company,
by
Company,
managed
three
a
included
28,
stock
common
recovery
•
American
nounced
was
num¬
same
both
at
though there
similar tabulation of eight casualty companies
shares
of
sharp
with
on
According to
casualty lines.
even
com¬
of their total
earnings from fire and allied lines, increased
esti¬
1,321,-
on
so-called fire
17
this accounts for the fact that
Blyth.
its com¬
1954
share
1953
for the
is
enabling the group to show
then outstanding.
Its hold¬
American International
Corpora¬
majority-owned subsidiary, is in¬
of
ing
tion,
in
compared
31,
per
31,
49.4%
$290.31
earnings from the casualty business acted as a compensating fac¬
$5.17
or
1953.
March
above tabulation
moderate decline in
a
share
a
$72,738,177
outstanding
Dec.
53.4%
$299.10
_
31,
value
on
market
$5.42
31,
$41.36
Investment Income.
volume of business is derived from
January,
net asset value of
at
at
shares
980
Net
panies it should be remembered that close to 31%
Express Company announced
today that the
$7.03
in
EXPRESS COMPANY
The Adams
$8.27
+6.0
Rate
Liquidating Value
,
1953.
The
ADAMS
$19.01
a
and
March
$20.16
Earnings
Ratio Indicated Dividend
se¬
■
to
6.23
Indicated Dividend Rate
During
period.
offset
of
equal
1953
on
Operating
1953.
2.8c
$71,106,271
31,
of
or
indicated
an
with
pared
V
1
7.43
-
included in
or
common
■
14.24
common
by
the
sale of
Niagara Mohawk Power
of
4.70
15.47
Income
Federal Income Taxes
caused
•-
Total
Investment
+6.1
a
$218,383
than
more
1954.
$6.30
3.56
Change in Equity
with
7.4c
$394,870,
with
income
Corporation
of
on
first quarter of
improvement in
244,339
38.8%
$8.56
common
to
quarter
profit
compared
'This
of
securities,
the
quarter
share in the
38.8%
Ratio
Underwriting Profit
larger in the first quarter
was
than
1954
first
of
sales
on
56.4%
that
compared
equal
the
Increase
$248.09
during the
amounted
8.1c a share
number
same
during
Profit
net
the
on
This
$1,036,268,
in
Percent
1952
.
56.3%
1954
equivalent to
14,072,149 Vi
shares
income
1953
.
$263.34
company
March
ended
the
stock
•
■
Written
Expense
Corporation
$1,144,848,
net
is
report
Loss Ratio
UNITED CORP.
The
Blyth
Period Ended Dec. 31
,y
Premiums
Expense
Fund Notes
Mutual
the
Com¬
included
are
Operating Results
CLOSED-END NEWS
cluded
to
\'
features of
1952
below:
Net
AMERICAN
public
interesting
and
a selected list of fire and casualty com¬
Operating figures for the past two years are presented for
the 17 fire companies which make up the Standard & Poor's stock
fire index. This compilation taken from the Blyth report is shown
formation
available
the
of
1953
aggregates it presents on
five-for-
a
investment earnings.
changes in the stock¬
or
the
panies.
proposed split
company's
'
:
of the U.
His law firm, with
of
for
Inc.,
show
the results for
between
One
application
to
thereafter.
Federal courts in many tax cases.
c
the
underwriting
allowance has been made for potential Federal in¬
no
the tables.
year.
Services,
to
as
adjusted
taxes to be paid upon the realization of such equity.
parisons
record
amount
stockholders at
the annual
meeting
April 20. If approved at the meeting, the
split will be made effective immediately
a
si
last
come
mon
on
S. in
period
of
same
class
practice before the Supreme Court
objectives, has
to
to
the
Accordingly,
$76,320,605,
admitted
stock
is
granted
quarterly
share was
per
been
holders' equity by fluctuations in the unearned
premium reserve.'
However,
10c
to
29
and
have
Results
to
of
authority to split its common
common
basis.
1954
1921, and has ap¬
peared before that Court and other
a
1953
increase
and
dividend
publications. He is
the author of "Taxes in Corporate
with
program,
two
ating results segregated
increased
31,
an
consecutive
to
same
has
securities
tax
73rd
Diversified
Investors
the
was
Dec.
the necessary
share,
Baar
with
gain of
quarter in
share
per
on
1954,
1954
the
curities
Judge
year just ended.
complete and detailed of such compilations
is that recently published by Blyth &
Co., Inc. of 14 Wall Street,
New York. It covers pertinent statistical information on 60 of the
major fire and casualty companies including figures on changes
in premium volume. Also shown are per share
figures on oper¬
net
a
first
31,
March
15,
Clearing House (CCH),
nationally recognized tax and
legal reference service. For many
years he was principal editor of
CCH
value
companies for the
One of the most
stockhold¬
compared
or
the
amounting
on
March
a
public infor-
of
program
Association
subsequently
stock
ance
1953
for
Insurance Stocks
—
banking houses specializing in fire and
casualty insurance stocks are now in the process of compiling and
publishing their annual reports on the operating results of insur¬
reporting as of
high figures
of
JOHNSOfl
The major investment
record
share
per
Fund's
Commerce
Although detailed, specific
new
which
two-for-one
number
31,
March
on
dividend
in¬
was
strumental in founding a tax serv¬
to
And Education
tivities for the
he
when
share
a
outstanding,
outstanding,
asset
$7.79
shares
thereafter
1953,
This Week
the
1954.
on
He
lished
By H. E.
in¬
of
$6.93
$871,749.27
were
16%
from the
He is
shares
than
more
managing agent.
Judge Baar received his Ph. B.
1914.
assets,
Dec.
will
was an
31,
or
a
shows
1954
net
Assets
one
ber
close
then
INVESTORS
$748,813.38
The
Judge of the Tax
as
the
appointment
fund
wholesalers.
films
funds
mutual
have purchased copies of
sponsors
the
of
in
for
$7.80
10%. in the fourth quarter.
PROGRESS
ARNOLD BAAR is resigning as a
director
of
Selected
American
Shares
Oct.
on
to
outstand¬
$8,656,144
split.
SOVEREIGN
The net
PERSONAL
year
$36,-
equal
the
totaled
the
on
of
shares
an
since
assets
Bank and Insurance Stocks
apprecia¬
high
last,
they
from
Association, in writing Mr. Fox-
31,
4,668,619
represented
in
Life Insurance.
Education
market
boosting the Fund's
all-time
crease
$8.58
Martin
the
on
of
an
March
on
This
ing.
3, will con¬
the
of
to
of sales.
with
the effect
share
a
but 15%
or
combined
had
ers
Mr. Burr, until May
tinue
tional Division for the Institute of
.film.
of
Information
ment
easily-di¬
worked into the
are
important business.
an
net assets
tion
turn for
can
companied by an unusually low rate of
redemptions which, for the three months'
period,^amounted to less than 2% of total
to which
source
a
67
Laird, Bissell & Meeds
Protectorate.
•
r
T
Reserve
Capital__—£4,562,500
Capital
£2,281,250
Fund—
Members New
£3,675,000
-
Members
120
BROADWAY, NEW YORK 5, N. Y.
(L.
A.
Telephone:
description of
exchange business.
The Bank conducts every
banking
and
Trusteeships and Executorships
also undertaken
York Stock Exchange
American Stock Exchange
Bell
BArclay 7-3500
Teletype—NY
Gibbs,
Manager
1-1248-49
Trading Dept.)
Specialists in Bank Stocks
€3
(1596)
April 8, 1954
The Commercial and Financial Chronicle... Thursday,
Continued
"full
omy,
not
Murray claimed in
that "one is either for
sibility
ment,
the
demagdguery
"Congress
—to
wants
quote
"The
there
vinced
New
Republic"
ment Act deserve
to
from
equally be
in
obvious
are
the
con¬
conflict,
a
re¬
then
favor
of
"full
as
now,
if
not
and
they are being carefully
by the advocates of
"full'employment" philosophy.
abstract
must
be
.
.
growth of the
balancing
frame
reference
of
for government fiscal policy. .
The functioning of the money and
,
The "Full Employment" Doctrine
credit
Defined
the
The philosophy of "full employ¬
which underlies the Em¬
social
being, has
.Jiving.
to
1945:
that
earn
with
an
decent
a
As the then
Commerce
ja
a
inherent right
an
JClat society provide him
opportunity
on
Henry
"The
the
Secretary of
Wallace wrote
essential
is
Government
Federal
idea
is
ultimately
responsible
for
full
employment." Or as a writer in
"Harper's"
magazine
put
it,
the
again
.never
^become
wjll be permitted to
national
a
.second
problem.1
The
premise rests, as the New
York
"Times" pointed out at the
time,
"on
the
assumption that
private enterprise, left to its own
•devices, cannot provide sufficient
employment"; —a popular notion
during the thirties and forties
.resulting from the psychological
impact of the depression and the
economic theories of Lord
Keynes.
According to Professor
Hansen, for instance:
A 1
"A
free-market
risky,
.
.
and
Under
.
i
risks.
grave
and went social
political
inherently
play of
It
was
with it
an
came
disturbances, and
.
A
.
.
sig¬
nificant point in economic evolu¬
tion
reached
was
when
the
ur¬
banized, industrialized sector out;#veighed the rural sector.
It
is
this
that
bility
made
.government
by
economic
longer
no
while
can
the
insta¬
tolerable.
no
The
longer stand
plunges
economy
.from
'boom
Has at
long last become necessary
bust.'
to
Thus
it
for the
government to take posi¬
tive action designed to
provide a
stable and adequate"flow of total
-expenditures
"fall
sufficient
the
has
"man
job,
cannot
two
of
use
that
always
clusion
create
Jkjw
!a
the
nec¬
jobs, the
con¬
has
to
step
in
to
the
necessary jobs.
But
should the government
far
to
create
jobs?
That is
question
which
is
■crucial
mentioned
ment Act.
■consists
rights
to
enterprise
provide
of
that
right
follows logically that the
government
n
assure
premises,
private
number
at
all
in
the
the
not
Employ¬
The art of government
in
balancing
and
conflicting
needs, .in establishing
claims.
Where in
priority
of
this
hierarchy of rights ranks
"full employment"? If the
policy
•of "full
2flict
employment" should
with
stable
the
ienance of
1
Stanley
antee
fu;l
a
con-
requirements of
and
currency
free
the
l'ion'
bility
of
The
mentions the need to
free
promote
prise
and
and
various
general
Act
the
forties
it
and
is
mental
doubtful
did
either
dom
these
the
main-
enterprise
Lebergoit:' "Shall
a
we
eeon-
measure
cates.
the
or
chief
without
the
philosophy
consisted
New
Deal
guar¬
-and
Full
1947,
p.
Hansen:
"Economic
Employment,"
233,
Policy
McGraw-Hill,
234.
oppose
who
Taft
led
Government
wants
such
is
of
the
ij0n
(Utah),
well
as
and
Congressmen
as
Patman.
The
In
thrown
was
his
to
Eight
years
put "it:
re-
the
tional
Resources
that
the
should
Planning
Federal
writer
one
"We
in
on
of
"full
provide
Na¬
Board
"full
employment
for the unemployed and guarantee
job for
a
...
from
the
every
industries
war
working
man
forces
fair
at
conditions."
recommendation
stm
the
British
was
the
and
pay
The
a
the
no
to
reason
assume
velt.
It
able
by
much
seems
that
it
Henry
Wallace
"liberals"
as
icy,
backdoor
as
a
prob¬
more
sold
was
him
to
and
■
other
sound economic
economy—and
as
a
to
a
pol¬
planned
clever
cam¬
paign strategy for 1944. "The es¬
sential
idea," explained Henry
Wallace,
who
as
Secretary
of
Commerce
was
to
have
admin-
w
.
Congress of Industrial Organizations:
'Maintaining Prosperity," Report by the
Committee on Economic
Policy, 1953, p.
39
and
40.
.
.
final
■
{
n
discussion, the
supposedly satisfied
version
"even
Senator
passage.
take the
passed.
as-
policy
ing
the
.
to
J
.
in¬
For
.
the
that Con¬
says
responsibility
Government
all
promote
its
maximum
of
to
...
resources
.
.
.
employ¬
ment, production and purchasing
power.' That's boiling a 100-word
sentence down to 20 words to
at
the
guts of it.
was
one
of
job
pieces of
.
get
The whole
the smoothest
.
.
legislative
legerdemain
pulled off in Congress."13
ever
him
and
the
his
legal
is
the
instrument
A
feeling of extreme
being generated by
of
the
bill.
"If
advtates
block
to
the
Act
In
F.
Stone:
"Capitalism and Full
Employment," The Nation, Sept. 1, 1945,
w|sb
We
of
bill had
financial
the
whatever
jt
398.
promised
to
the
mean.
reader
The
6
79th
Record,
sured
p.
198,
Stone:
the
American people ."that
interests, so far as we
can anticipate them, do not afford
an opportunity for a major differ¬
ence with us in foreign affairs..
They
want
593,
10
for
the
a
no
-i.l-
isn't
that
kind
give him everything I
he
will work
can,
for
a
.
.
.
world of peace and
this
as
foreign
philo-com-
policy,
a
in
on
difficult
Amer¬
domestic
a
policy based
free
en¬
stand.
It
interesting job for fu¬
an
which led
Employment Act of 1946—•
less, interesting and significant
would
12 Francis
be the
uncovering of
A. McMahon:
"Plain Speak¬
ing," reprinted in the Congressional Rec¬
ord, 79th Congress, Second Session, Ap^
pendix, A-1287, (March 12, 1946).
Full
13 Peter
Edson
News, Feb.
in
Washington
11, 1946.
Sherwood:
Daily
"Roosevelt
and
Hon kins."
15
p.
.
Stalin
long
be
than
Journal-American, Jan. 4,
• w*
of
hind-the-scene history
Newsweek, June 18, 1945.
.i
in
his
know, still
President
we
opinion
that
me
to the
1946.
i
and
Truman
all
the
passed
man.
14 Robert
:
When
was
Roosevelt, who, when warned that
Stalin might seek to conquer the
world, replied: "I just have
a
597.
York
us."14
Act
j>
.
y-
i
i
.
friendly
ture historians to unravel the be-
9 Leo Barnes:
"The Anatomy of Full
Employment," The Nation, May 26, 1945,
p.
maintain
President
1946,
will
"full
and
with
terprise had
The Nation' Sept' h 1945,
199.
relations
to
Employment
economic
to
Congress,
"Capitalism
abun¬
Russia's
ican
7 Nashville Tennessean, Feb. 6, 1946.
F-
of
brought about by a quasisocialistic revamping
of society.
Harry Hopkins, for instance, as¬
As
24!T946SesS1°n' Appenthx A*204» Jan8I-
everlasting
friendship
tomorrow
munist trend continued
Congressman William W. Link (111.),
Congressional
could
democracy." 18
might
term
supposedly
a
employ¬
How
dance
with
1_
11 New
p.
the
possibly
seemed safely out
The wording of the
vague
"full
American-Russian
I think if I
lmple-
end,
sufficiently
the
Harry tells me that he's
not, and that he doesn't want any¬
thing but security for his country.
employment"
had
disappeared
completely. A high-sounding corn-
199.
Survey Graphic, Oct. 1945,
way.
was
mean
sation for 26
weeks;1 the WagnerMurray-Dingle Health Insurance
bill; the Fair Employment Prac-
while
of
tired of
the lengthy arguments and pressed
propaganda, the Senate passed
the bill 71 to 10, almost without
debate; but provided no funds. An
we
do
not
embody all these safeguards (a 65 cents Minimum Wage
Law; $25 unemployment compen-
pulled
legerdemain?
Lord Vansittart:
115,
"Even
Now," 1949,
116.
•
*
.
It
and
Federal
utilize
.
.
preamble of
declares 'it is the continu¬
gress
hunch
Taft
°r ^r4°ifi? Pea(Je^me- explosive issue
urgency was
the advocates
198,
under
was
,
i
just
.
DespUe such gharp outbursts of
the bill
-
r
secure
shared
We say that the Federal Gov-
come.
5
the
socialism
state
the country. It would estab-
tried
through which we can all work
together to a c c o m p 11 s h full
employment and high annual in-
p.
"inflict
to
of
-
represented
ernment
4 I.
bill
were" frivf?n for.a, gf"eral poIicy dec"
laration; while: the opponents had
acknowledgment that the national
employment" doctrine
originated with President Roose¬
to
stance,
Cabinet,
„
,
by
associates
even
deficit
uSi offered ?ena*?r Murray., mentation.
"1?
bill
the
gradually
the
(which was
with
only
was
adopted
plan
w?tnhdnnth<Z, "
planning,
the
criticism during the months when
was
government assumes the responsi-
"full
Em¬
It's
anymore.
Act
Federal control" 11
"
part
that
'Full'
the
Employment
Act.
This
is
typical of the compromises made
financing and huge
public expenditures as the permanent Federal policy and would
subject agriculture, industry, commerce
and employment to rigid
and
same
made
Bsh
mean
America." 18
but
threatened
upon
phrase
brushed aside.
released
and
of the Democratic
platform during
the
1944
Presidential campaign.
There is
:ould
tion and socialistic
,
armed
passed."
measure
called
the
ment"
changes), according to the
York
Journal-American,"
left
the
by
Senate
"New
Sober inquiries as to
meant
was
in
down,
the
employment"
classes
original draft
minor
The pressure and propaganda in
favor
all
and
both full employment
private enterprise." 4
economic life." 9
our
eventually
"The
have
in
Government
.
amended
full employment. We
yet ready to state dogmatically that it is impossible to
what
the
.
whittled
not
are
tremendous.
of
en-
postwar
j0bs
will demand even
thoroughgoing government
0f
The
how-
ago,
organization of the national
is the one certain way to
1944, President Roosevelt included
recommendation
'free
the
literally enforced, would
end
guarantee
idea.
Congress
like
"Once
the
ployment Act
Who
be-
kill
to
with Senator Taft
agree
entire
behind the
message
will
.
"chuckling quietly over the
job of word-juggling they
did to get
"It isn't
.
.
of
wrote
the Employment
as
slick
"The
The Revised Version of the Bill
Soviet Constitution that the social-
weight of the New Deal organiza¬
tion
Act
be-
worryjng about
words
.
more
job for any-
a
suffice
As
welfare
Morse
country
Nation"
lesg
terprise.'"3
economy
O'Mahoney, Wagner, and Thomas
this
"The
sacred-cow
the
to
resemblance
a
would
ist
schemes.
They included
Henry Wallace, Senators Murray,
in
|3e wjge ^
a
the proponents of soft money and
more or less socialistic
of various
in
l^den" businessman
attacking the wis-
menace.
3
H.
Senator
Nation"
welland
deal
good
to
of
enterprise
"Free
war was incompatible
full employment," commented
writer
ever, Congress and the American
people were
not
yet- seriously
perturbed about the communist
"full
of
full
problem of un¬
commentator
the opposition be taken in as it
Writing of the original version
There are two
of the bill, Raymond Moley pro- apparently was?
reasons.
When the Act was passed
tested against "the insincerity of
in 1946, the American people still
enacting into law political slogans i
lived in a left-wing fake paradise
which
mean
either
nothing or
in which capitalism was pictured
something which no one really
as
the
dark
age
of yesterday,
wants.
"For
'full
employment',
measure.
a
during
"liberals"
We
that
agreed
are
Federal
trine
exception,
of
sponsors
forties
known
about
accom-
the
fore
pending
bill
and
an
essential part of communist doc-
by looking at its advo¬
Almost
employment"
the
deal
Another
preservation
existed
^
as
"Wp
work, had a
strong family resemblance with
the "right-to-work" section (Seclion 18) of the Soviet Constitution,
with the alterna¬
great
Governor
ancj
enterprise.
the
resources
direction for
one
old saying that one
a
And
^ree
the
solve
pro¬
of
employment, then nothing will."12
concerned about the danger of infja^on
the
Today,
learn
employment?"—Harper's, Feb.
t94S.
2 Alvin
of
tween
can
people.
sponsible to provide
The "Full Employment" Advocates
an
de
ic
Act
utilization
the
inflation.
There is
be
the
that
the
policy as well as its
underlying social philosophy, he
pointed out that the doctrine, that
reservations,
unemployment
its
associates.
safeguards" would be
effective,
if
the
govern¬
of
eovernment"
wliifnZ S
Mr
Mr.
opposition. In
"implied
tive
could
employment" stampede of replenishment boomlet subsides,"
Henry Wallace and his "liberal" predicted another writer, "60 mil-
not
whether
cannot
backers of the "ful1 employment"
Philos°Phy were admittedly little
"full
officials
apparently
such
postwar
It
required
a
political courage
enterr
guards," but the leaders of the
"full employment" philosophy of
have
Anv
mind
for
the supporters of
this
a
Government.... If those
abundance."7
all
in
vides
Z
Republicans
"implied safe¬
as
Bear
of
William
employment shall be the first objective of national policy.
have stated that they regard these
statements
put
1945 and
in
and Sir
Jobs^
fail
welfare,"
government
ahLd
Bp^fhl'i4neanarfvaSri1nHpH-<
Republican party, replied.
"foster and
competitive
the
been
Wallace,
which is not
dedicated to full employment will
Govern¬
dollar.
plan
ments
the promise of a real economy
might even
condition
begging ....
...
mean
where jobs would go
Plished by the "ful1 employment"
policy without mflatlon and ec0T
nibrL
clared
all practicable means
the
original
conceivably
that the commitof science and religion hold
economy
employment
mum
insecurity,
sledding,
hard
feFreeld|ociety"^w^best™eHera
'
Federal
not
pe0ple take
and
an
'maximum
health
long
can
in
succeeded
objective they substituted
employment.' This is
even a verbal victory.
Maxi¬
as
break-down
economic
national
the
Henrv Wallace's "Sixtv Mil-
1946
to
.
jn
How
promote maximum em¬
ployment."
No
safeguards
are
provided in the Act for the sta¬
.
the
had
looked that to
According to the Employment
Act, "it is the policy and respon¬
ment to
cautions to prevent a
expan¬
improvements."3
sibility
no Administo take pre-
fails
which
tration
one
"Reactionaries
"Tennes-
into effect
rising consumption levels,
improved
plants and
equipment, high levels of con¬
struction as well as easy financ¬
ing for needed Federal and other
public
enterprise
have
the
inherent
an
and
essary
go
to
employment."2
Given
had
the
...
upheavals.
continuous
free
would
and
ment was faced
is
forces, entrepreneurs,
"workers, and owners of property
endless seesaw, and
to
"Henceforth,
sean,"
fellow-traveiers, the Ameri-
can
to
sion,
new
n
automatic
faced
look
very
economy
uncertain,
unstable.
v
with
employment
economic
of the American people. It
must
.
.Federal Government must give "a
firm assurance that unemployment
.
full
goal
ment"
system must be attuned
changing the wording of some of
the bill.
For 'full employment'
Nashville
the
As
victory:
survive. The American
no stock in economic
Calvinism. They believe that the
with his predilection for "ad-?
economic cycle can be forestalled,
vance
planning" and "synchroni- that millions are not foreordained
zation," and his close affiliation and predestined to unemployment
.
budget
the
placed
wise.
warned
Ruml-Sonne, and the Twinreports)
of them hailed their
payment, no Administration or
Congressional majority can pursue
a
do-npthing policy and survive"
have been by far the most powerful man in the United States, and
and
economy,
at
regular
postwar Federal expenditures at
$15-21 billion. With a $40 billion
"full
employment" fund at his
disposal, Henry Wallace
would
priority over the ob¬
employment.
full
of
The
concealed
ployment Act of 1946, is based
two
premises: that man, as
the
Cities
.
jective
This
time, when postwar economic
plans (such as 'the CED-Grove,
a
are
employment"
investment fund."
annual
doubt that political
no
cannot have
far
from obvious to the general pub¬
lic,
were
of
of inflation.
As the CIO expressed it recently:
".
obviously budget balancing
.
They may be
economists, but they
Act
case
But
that
necessary at the cost
be discussed
publicly.
the
in
pressure groups,
Employ¬
lo
of
that
avoided.
doubt,
by the government as its
primary objective, and there can
Congressmen voted against deficit
financing.
The dangers lurking
between the lines of the
be
no
garded
because
—
government
"full employment" was to be
to say that
headline
the
can
be
can
sponsors
govern¬
unemployment"
1945
a
will
conflict
a
em¬
for unemployment." And
or
it is sheer
,
ultimately responsible argued Congressman Link, "we mediate action-could be taken.
employment and can dis- will have a depression which will Compared with the original ideas
charge its responsibility only by dwarf
the
depression
of
the of Messrs. Wallace, Murray and
planning
in
advance
to
syn- thirties. The pinch is here right associates, the Employment Act of
chronize all its programs with the now and Congress must act now. 1946 seemed on first sight quite
programs of private enterprise so Party lines should not
be con- deflationary—in an emotional as
that the whole national
income sidered.
Both
political
parties well as monetary sense. It looked
will
be
maintained
at
the full should work together now as they like the expression of a pious hope
employment level."
did during the war, for this is just of Congress, safely tied down with
The cost of such a program did as critical a period in our country restrictions. Thus at least the out¬
not scare its advocates.
Senator as during the war." 6
come appeared to
the opposition.
Murray proposed a "$40 billion
The "liberals"
"jn the face of serious unemthought other¬
Employment Act of 1946
implies the pious hope that such
respon¬
national
how
advise," but since Congress
provided no funds, no im¬
had
ernment is
The
1945,
full
a
with
program
in
and
for full
decide?
employment" doctrine does
imply the advocacy of unem¬
ployment, deflation, depression or
exploitation.
It
is not true, as
ployment
mittee had been created "to study
the
government spending. tice Act; the Mississippi Valley
"full
employment" Authority Act; etc.) around labor
scheme, "is that the Federal Gov- into law in a very short time"
Employment and Its Dangers
Senator
the
under
Full
istered
from first
'
j
■
•
■
J
i
I
Volume 179
1
t
Number 5314... The Commercial and.Financial Chronicle•
(1597)
full story of Pearl Harbor and
Yalta;
"
*
The second
tion
was in a politically far less
dangerous position, when business
.*Js|3&Gfc$8SS5£'
■
for the pas¬
reason
activities declined in 1949.
the Employment :Aet was
that the spectre of un¬
employment of the '30s, when
sage of
was no
the
that the Democrats,
fact
even seven
spending
friend at court, while the unions
feel (rightly or wrongly) that the
number of unemployed below the
million level, was. still fresh
minds of the people.
public
was
in favor of the
100% in
were
of "full employment."
Or¬
ganized labor knew that it" had a
7-8
in the
doubt in the public's mind,
favor
of compensatory
not reduced the
years
had
There
Administration
present
favors
"business." The official statements
The
regarding
"full
employment" philosophy, because
the people were led to believe
dangers
the
of
importance
and
implicit in -several -of the stated
objectives.
•" But Dr. Keyser¬
ling added significantly: "An ex¬
plicit statement would run the
.
.
.
risk
of
causing useless
troyeries
[!]
con-
the meaning and
over
desirable degree of price stability
and
of
making price stability a
goal that competed with the ob¬
jectives of maximum employment,
production, and purchasing power
instead of assisting in their
mist would claim that
dict with any
we can
pre¬
^unds available for investment>~
degfcee^(£&&ih#t^(The: present campaign to stirnur
whether
we
million
unemployed- during: the
shall have 3*/2
unless
summer
intervenes.
the
The
access to a vast amount
tistical
data,
ad-
would reach 3V2
million by Feb¬
ruary 1954.
Let us "assume that
the administration decides that we
.
.
.
.
.
.
.
.
.
.
...
.
.
their
jobs.
.
ment
such
.
.
,
.
.
things,
."16
their
of
1946
degree
a
.security?
homes, -their
the Employ¬
really assure
Does
.
Act
of
of
gen¬
of these
in
No
than
less
40
statement
national
organizations with many millions
organizations, such as the
F. of L., the C. I. O. and the
/h.
National Farmers Union had
son
to
believe
that the "full
But in the
Association
of
of
answer
William
McC.
rea¬
Martin Jr., then as now Chairman
em¬
of the Board of Governors of the
Federal
case
ly
of
Reserve
questions
same
System,
in
the
declaration
policy contained in the
ment Act of
Univer¬
specific
no
sity
Women, the United Council
of Church Women, the National
Board of the YWCA, and the Na¬
tional League of Women Shop¬
of
Employ¬
1946 is that it makes
mention
statement
interpretation
of
policy to
For this reason
prevent inflation.
the
the
to
conspicuous¬
"The possible
may
as
seem
Employment Act
Eight
■the
years
passage
of
have
the
the consequences which
are
inflation
of
which
and
lead
passed since
out
Employment
ultimately to deflation and de¬
pression and attendant evils of fi¬
Act, but except for a mild reces¬
sion in 1949-50, no opportunity has
nancial dislocation and
It
ment.
unemploy¬
be
said, however,
that notwithstanding the emphasis
be the irony of fate that the mid- on expansive policies
the dec¬
«dle-of-the-foad
Eisenhower Ad¬ laration of policy
implicitly
ministration will have to apply includes the objective of restrain¬
for the first time the law which ing excessive and unsound expan¬
If this interpretation of
represents the keystone of left- sion.
is a
-Aving New Deal policy, and if the the policy declaration
application of the law proves in¬ correct and valid one in the light
of* the legislative background of
effective, President Eisenhower,
^and not Henry Wallace and his the Act, then that policy declara¬
.associates, will reap the "serious tion adequately serves the pur¬
consequences" of "public disillu¬ pose of providing a broad and
sionment and anger." The public workable guide for the determi¬
presented itself thus far to test the
efficacy of the Act. It may well
may
.
.
.
.
.
.
...
...
^will
not
ask—nor will
it
be
and
monetary
On the other hand, if
: failure of
the "full employment" there is any widespread doubt that
policy was the result of faulty the policy declaration has this
•execution, or of fundamental de- meaning, then it would be desir¬
mitted
to
find
out—whether
the
.
.
.
able to amend it to include
:fects in the law.
The
policy.
credit
of
nation
per¬
"Employment Act"—"the
Basic Policy Directive"
a more
explicit reference to the objective'
of
longer-run monetary stabil¬
political
reasons,
Dr.
the Eisen-*
.
-cries
of
the
opposition that i the
favor of
unemployment."
In this
respect, the Truman Administra16 Stuart
Chase:
"The
Road
We
Are
"Traveling," 1914-1942, The Twentieth
Century Fund, 1942; p. 84, 85.
.
cifically mentioned as an obieqtive
there is no doubt that it is
.
^Republican Administration is "in
.
.
.
238.
,
,
.
different from predicting
-
how difficult it is to
change.) The government can also*
help to ease the capital market
directly, through loans to indus¬
try and consumers, especially real
estate loans.
In short, we cap increase the
supply of money and credit, but
such a policy does not
necessarily
result
in substantial increase iir
employment, as the advocates of
"full employment" often imply.
There are many hurdles between
"easy money" and "full employ¬
ment." "Easy money" can fan the
fires of a boom, but "easy
money"
alone cannot stop a downward
spiral. Before 1939, the excess re¬
But, without quarreling about
details, let us assume that we ac¬
cept the premise that it is the
which
duty of the Federal Government
to provide "full employment." To
whether
is
needed
achieve
to
"full
employment" through government
intervention.
It
is
doubtful
what extent will the Government
plan at the pres¬
ent time within a margin of error
of about a million jobs, even if we
be able to
do
Union
accomplish the task?
and
leaders
politicians
at
are
creating the
New
present
Deal
busy
impression that the
administration
create
can
"full
employment" by government fiat,
as it was able to "build the
just
The fact that
Panama Canal."
last
fall
the American
the
is
people
as
proof that
administration
Eisenhower
under the
un¬
been increasing
represented to
is
influence of "reaction¬
ary" forces which are "deliber¬
ately turning their backs on the
more
progressive
money
and
credit policies of the past two dec¬
which
ades
helped to spark off
and
spearheaded
the
recovery
great postwar economic growth."2*
"The
tools
abundance
for
are
at
hand,"
but, as Mr. Reuther told
the C.I.O. convention last Novem¬
ber,
reckless monetary ad¬
the Treasury Depart¬
officials
a pathetic ex¬
"the
venture
ment
of
...
ample of the antiquated economic
ideas
in
Washington" threaten
"the
continued
growth of the
economy." Such statements may
be good politics for union leaders
and
Democratic
politicians, but
they do not fully reflect the true,
picture.
Some of those who opposed the
1946 were
dubious
from the
beginning,
whether "full employment" can
be achieved by government fiat—
except in a completely regimented
society. The "Christian Century,"
for
instance, warned that "the
most
dangerous fact about the
Murray bill is that its supporters
claim that it will do certain things
which, in actual working, it may
not do at all.
The resulting
public disillusion and anger may
have serious consequences."22
Employment
•
of
Act
.
.
The Reliability of
success
of all
planning de¬
pends upon our ability to predict
future
developments.
We have
learned
a
good
deal
in this
1946.
can
allow
not
so-called
for
to
"un¬
at
Yet
the
confronts
infla¬
an
which
the
when,
added
and
the
to
business
confusion
at the beginning of the
they burst forth with a
of
predictions
for
1954,
dressed
up
entific"
forecasts,
in the form of "sci¬
while most of
actually only more or
less informed guesses, and many
merely wishful after-dinner-talk.
them
anti-cyclical tools at the
disposal of the government (to
execute whatever
policy is de¬
cided upon) are equally inade¬
quate as our forecasting tools.
"Compensatory
spending,"
the
Keynesian panacea of the thirties,
its definite limitations.
"Tax¬
capital," once recom¬
mended by New Deal liberals, is
no longer advocated even by some
ing
of
idle
the
who otherwise
economists
believe
in
the
efficacy
of
com¬
spending. Even public
works programs have their limi¬
pensatory
tations
as
tools.
make-work
a horse go faster byi
pushing the
bridle. The Treasury and the Fed¬
eral Reserve
doubt,
tional
the
we
money
through
an
can
credit, but they cannot force busi¬
ness
re¬
create| addi¬
credit, either
credit policy of
Reserve
rediscount policy, and can create
additional reserves through open
through
low interest bearing Treasury
Bills
and
Certificates
(which
would tend to be absorbed
Reserve
banks and
thus
and
by the
commercial
create
is different
witfte
According
the C.I.O.,
"our
hospitals, our recrea-"
parks and centers, offer al¬
to
schools and
tion
most
limitless investment
vation
tural
.
.
.
and
oppor¬
Important action
development
resources.
.
of
na¬
Government
.
.
re¬
conser¬
must
pursue a vigorous role im
helping to break .the bottleneck"?
in the economy. The adequacy of
basic capacity and raw material
resources
must
be
continuously
matched against the needs of ,31*
expanding economy.
We have,
of course, only made a beginning
in housing.
The job of providing
decent, modern dwellings for the.
.
vast
.
middle-income
well
.
groups,
ast
the
underprivileged low
income population is still largely
as
before us."
Let
^
concede
us
that
all
thes#
opportunities
for public
works
projects exist, in addition to bet¬
ter
highways. Very few, if any
of these projects,
however, are
suitable for an aggressive "fulf
employment" policy, which is to
avoid
the
dangers of inflation.
The
planning of,public works
takes a great deal of time—andL
the Eisenhower administration didnot
inherit
from
its
predecessors
portfolio of public works plans,
approved by Congress and ready
to bq undertaken on short notice.
a
Even after
a project is
started, it
requires a good many
months until the full complement
of jobs is available. By that time,
usually
short recession would have run.
ects
additional
deposit currency) rather than
through long term bonds (which
are more likely to
be purchased
by
investors and thus absorb
would
business
As
and
Legal reserve require¬
ments can be reduced, the Fed¬
eral Reserve can follow an "easy"
issues
1
regard to public works, and them
is seemingly no dearth of poten¬
tial public works projects which,
the government could undertake.
eral debt.
maturing
to borrow.
Public Works
situation
The
System, or
through monetization of the Fed¬
Federal
or consumers
'■i
are
nance
for
to obtain,
consumers
its course, and public works proj¬
and
easy
Federal
make it easy
can
business and
a
Expansion of Credit
No
rate.
cheapne&**s
of credit failed to set the economy
into motion. You just can't maker
were
The
has
and
mains to be taken in the
obstacle
economists
ernment
discount
plethora
tunities.
application of the
policy. But the
American public is largely un¬
aware of this difficulty, and gov¬
leaders
nominal
a
the
"full employment"
year,
expansion of between $25
$30 billions.' Treasury bills-
and
sold
the
into
serious
most
flood
would
credit
as
tionary boom.
This
impossibility of making
quantitative forecasts is the first
and
than five billion dollars*
have permitted ,a
more
which
turned
which
recession
1949-50
such
events,
incident
market operations. The Treasury
can
finance its deficit and refi¬
Business
Forecasts
The
we
foreseeable"
Korea
of member banks amounted
serves
the
unemployed six
hence, and it is this latter
of quantitative forecasting
the
reverse
bureaucratic machinery when the
economic situation demands a
of
type
Manage¬ spect, but no responsible econoCommit¬
20 Ibid p. 847, 848.
tee
on
the
Economic
Report
(Patman.
21 Congress of Industrial Organizations:
Committee) Joint Committee Print, 82nd
"Maintaining Prosperity," p. 40.
Consrress, 2d Session, Part 1, p. 2.
22 "The Christian Century," Sept. 19,
18 Ibid, p. 16.
p.
economic
directly with the present
course,
months
17 "Monetary Policy and the
ment of the Public Debt," Joint
19 Ibid
the
structure,
and reversed its tight money pol¬
icy. But anticipating general busi¬
ness
trends
is
something quite
How to Create Full Employment
.
ity.""
Keyserling, speaking for the
Economic
"fiower
Administration
cannot Councilx of
Advisers,
agreed that "the emphasis in the
openly challenge the "full em¬
Act upon the objective of highployment" philosophy. It cannot
level employment is clear.
oven discuss its manifest dangers
-without exposing itself to the loud While price stability is not spe¬
For
being due
mathematical
difficulties.
to
arise
official
in
spots
number
since
the redistribution of income. These
the
error
and
employment has
pers, the enthusiasm for the "full promote expansion of production
employment* philosophy was ap¬ and employment regardless of the
parently the result of the wide¬ means employed and the possible
spread "liberal" propaganda of the injurious consequences that might
•day and misinformation regarding develop from unsustainable in¬
the possible consequences of the creases in credit, excessive rises
in
prices, overdevelopment in
ztneasure.
specific areas, and distortion in
Present Status of the
statistical
to
than
to
open
directive
a
out-of-work
be
were
cautious.
more
weakness
the majority of the supporters, in♦cluding such i organizations as the
American
mind." 18
The
ployment" policy would at least
promote the special interests of
their members.
admits that 250,000
250,000 fewer people may
figures show; the
practice, this is not, perhaps, of
importance because the
substantial
of members backed the idea. Some
value.
instance,
more or
has generally been in¬
terpreted to involve this consid¬
eration; and
in promoting
the
aims of the Employment Act of
1946, price stability has been kept
the "full
propaganda at face
^employment"
for
In
Americans
in 1946 seemed to accept
maintenance
eral price stability as a comple¬
mentary goal of economic policy.
of socio-economic
Millions
the
to
ence
of government
anti-deflationary policy of the
Treasury—a good illustration of.
of sta¬
did not anticipate
unemployment
last fall that
the purchase
savings bonds, inherently an antiinflationary tool, g o n f l i c t sVof
government
Eisenhower
Employment Act achievement."28
which were made during the Tru¬
will probably have
Dr. Keyserling is perfectly cor¬
4*/2 million
that the Government could actu¬ man Administration, are, thererect, of course, in saying that it is unemployed during the summer,
ally prevent mass unemployment, fore,
particularly
illuminating, impossible to obtain a general and hence sets to work to create
and they did not ask at what price since they were made in an at¬
agreement regarding the meaning a corresponding number of jobs
this could be done.
They only mosphere which was reasonably of price stability and its relative in order to provide "full employ¬
free from political pressure. Sec¬
thought in terms of the "100 mil¬
For some reason, how¬
desirability in relation to other ment."
lion man-years" lost through un¬ retary of the Treasury John W.
objectives. But the same objec¬ ever, business picks up, and only
3 V2 million unemployed are avail¬
employment during the '30s. The Snyder, for instance, declared in tion applies also to the concept of
people
wanted v "security."
As 1952 that the Employment Act of "full employment"—in fact more able to fill the government-cre¬
1946
Stuart Ghase observed:
"now
represents the basic so. There is no agreement among ated jobs. Unless we cancel some
"The desire for security is dis¬ policy directive bearing upon eco¬ economists as to what constitutes of the government-made jobs on
placing the desire to make a mil¬ nomic objectives for the Treasury, the "total labor force" and "un¬ short notice, which is impossible
lion.
This profound and revo¬ as well as for other Government
employment."
Are
housewives except in the case of jobs of the
and
lutionary urge for security, Work departments
agencies."17 with small children part of the leaf-raking variety, jobs -will go
^and hope, affects all classes in the When asked whether he regarded labor force? How about students begging, and wages and prices
"community, especially the middle- the declaration of policy of the who work part-time? Is a man will rise.
Act as "balanced in its emphasis
The simple truth, which the
income groups.
"unemployed" if he works 20
"What is it the people want?
American public does not realize,
upon high level employment and
hours as compared with his usual
price stability," Mr. Snyder re¬ 35 hours—or if he works only 10 is that business forecasting has
"They want work.
"They want to be rid of worry plied that the "Congressional dec¬ hours? The Employment Act of not yet been developed into a
laration
about where
the next meal is
provides a workable 1946 does not attempt to answer precision instrument. We can an¬
statement of policy and I do not these
coming from.
questions.
Moreover, our ticipate general trends. As early
"They want things which quan¬ think it needs to be changed at statistical techniques are still in¬ as May 1953, for instance, when
this time. Nevertheless, I believe adequate
to provide reasonably the rest of the people were still
tity production has made so vis¬
that the declaration would have up-to-date and exact employment worried about inflation, the Fed¬
ible.
"They want to be able to pick been better if it had made refer¬ data. The U. S. Census Bureau, eral Reserve System observed soft
the
late
4V2
or
mihistr&tion, for instance, despite
its
6$
not
far
compete with private?
for
men
and
materials.
short-lived
as
recessions
concerned, public works aro
a
suitable anti-cyclical tool;
unfortunately we
dor hot
know, for instance at the present
moment, whether we are faced
with merely a minor recession (as
the administration assumes)
or
prolonged depression (as the
ion leaders seem to fear).
>
a-*
un- •
additional arguments,
a t political
nature^
against heavy reliance on publicworks. The Eisenhower adminis- 1
There
are
primarily
tration
of
was
elected
on
basis Of
a
platform which opposed the^ex- *
pansion of Federal activities into
the domain of State and local
gov-
Continued
on
page
7(1
70
The Commercial and Financial Chronicle...
(1598)
Continued from page
ing to Professor Slichter of Har¬
69
vard, for instance:
what is best for the community—
who save, who plan, who put aside
Fall Employment
major public
works program would result in
such an expansion, since State and
local governments are not finan¬
cially equipped to pursue an anticyclical public works policy on
their own.
Some people will ar¬
ernments,
but
gue, of course,
ment" is more
any
that "full employ¬
important than ad¬
decentralization and
ministrative
and Its Dangers
licans
are
fully
aware
tices
amount of
sufficiently
severe to offset the price rises of
booms. Hence, it seems to me that
if the country must choose be¬
tween the injustice that a slowly
rising price level imposes on pen¬
sioners, owners of savings ac¬
counts,
and beneficiaries under
while
hoping that they will not get too
deeply involved in the potential
Conflict between various more
less
"full
effective
the
or
employment"
hand, and
recessions
self-government.
But are
people really ready to accept inflation and economic controls on
insurance policies, and the injus¬
the logical consequences of cen¬ the other.
With an eye on the
tice that a stable price level im¬
tralized
government?
Are
our Congressional elections in Novem¬
Southern
Democrats
willing to ber, the Administration has been poses on the workers who must
the consequences of the
abandon segregation in order to drifting away from its' 1952 cam¬ accept
stimulate employment by accept¬ paign promises toward a "New periodic unemployment it implies
—we
shall naturally choose the
ing Federal funds for the con¬ Dealish legislative program in Re¬
kind which gives the country more
struction of badly needed schools publican wrapping," promising to
and
more
employ¬
and hospitals? Since non-segrega¬ use "every legitimate means avail¬ production
and,
therefore, a higher
tion is part of our national policy, able to the Federal Government" ment
sustain
"full
Congress cannot very well allo¬ to
employment." standard of consumption." 25
cate money for the construction of Every? There is nothing "illegiti¬
The answer is not quite as clearlocal
measures
on
one
the
.
rising
slowly
a
unemployment that ac¬
companies
proclaim their faith in the "full
philosophy,
than
even
The injustice that ac¬
companies a staWe price level is
represented by the unnecessary
pect with millions of voters. They
are
leaning backward, therefore,
employment"
stable
a
price level.
of the fact
that their economic policy is sus¬
to
the maintenance of
.
schools
be
hospitals which will
and
used
the
for
perpetuation of
segregation.
on
expansion
nor
about
a
record
of
as
opposing the
Federal
activities
into the field of
private business.
Most of the projects listed by the
Street
Journal"
"New
was
warned
President'
before
of
a
Dealish"
a
month
Eisenhower's
program
unveiled:24 "The
for
1954
danger for
into fields where gov¬
Professor
explain
Slichter
not
does
why
it should be easier
to eliminate the
troughs of the
business cycle (the periods of un¬
employment) than the peaks
(which produce the "price rises
of booms"). From a monetary and
the
strictly fiscal point of view, it is
seek to stay in
much
Republicans is that they will
office for no other
ernment investments would
not
purpose than the holding of of¬
compete with private investments, fice." Production and consumption
except in the case of medium- —even employment — indicate a
priced housing (already opposed high degree of prosperity at the
by real estate interests), the de¬ present time — even though ad¬
velopment of natural resources mittedly the danger exists that
(opposed by private utility inter¬ the present mild recession may
ests), and the expansion of the deepen. But it does not seem to
"basic capacity" of our economy,
be so much the fear of a pro¬
which may refer to
aluminum
longed depression, which stirs the
smelters, synthetic rubber plants ire of the "full employment" ad¬
and steel
mills—but
also
to a
vocated,
as
the fact that
the
"yard stick" automobile factory Government has not intervened as
(along the lines of Hitler's Volks¬
yet to offset the mild recession.
wagen) to produce a cheap car for It is not
enough that we are pros¬
the low income groups and force
perous, that production, sales and
a reduction in the price of all cars,
employment
are
near
record
an
argument familiar from the
levels, we must have no diminu¬
days of the T.V.A.
tion of the inflationary boom, no
The
greatest weakness, how¬
adjustment of the inflationary ex¬
ever, of a large-scale public works
cesses of the postwar years. Pur¬
program — large enough to pro¬
sued to its logical conclusion, such
vide millions of jobs—would be
a
policy may be political "wis¬
the difficulty of synchronizing it
with the often rapid fluctuations dom," but it may also prove longrange economic suicide.
of the business cycle.
Once
C.I.O. fall
cut.
/'planned" inflation
theMntroduction
controlled economy. As "The Wall
The Eisenhower Administration
is also
mate" about
easier
to
fessor
Slichter's
statement
litical
be true, but such
decision
political
will
the
po¬
which
over
writing about the "uncom¬
paradise of full employ¬
ment," a writer in
"Harper's"
some years ago warned that "the
Yet it will require a great deal middle
started, major projects cannot be
class
will
tend
to
be
abandoned
abruptly as private of political courage to oppose the squeezed.
Teachers, profes¬
business picks up and calls for inflationary forces. "Full employ¬ sional men, salaried office work¬
additional workers. Public works ment" is above all a political slo¬
ers, rentiers, business and govern¬
programs are not like a spigot gan, and its advocates have suc¬ ment
bureaucrats, and all the
which can be turned on and off at ceeded in making it the standard other
components of the middle
will. If business picks up, while of measure by which the success class will
be relatively worse off.
the public works program is run¬ or failure of ah Administration is
The squeezed middle class
ning at the "full employment" to be judged in the eyes of the will
encourage anti-labor (really
level, private business would have people.
There are millions
of
anti-wage) legislation28 in an ef¬
to compete with the government voters in this country who would
fort to preserve its real share of
to attract
workers.
Wages and be quite willing to see the value the national income. This will not
prices would rise, even though of the dollar decline "a little,"
be easy to accomplish. As labor
much of the plant capacity of pri¬ provided
their real income in¬ becomes richer and
stronger, it
vate industry would still stand creases as a result of governmentmay not tolerate havings its gains
idle, which in turn would be a created
jobs
and
governmelnt- limited. Also as the middle class
serious deterrent for private cap¬
supported wage levels. Since the declines in
wealth, it will decline
ital investments.
beginning of the war in Europe, in
political power.
Social
the dollar has depreciated about
"Full Employment" and Inflation
changes are to be expected." 27
50%, but wages have increased
The author might have pointed
This brings us to the second
about 180% (measured in terms
.
aspect
of
the
"full
of
hourly earnings
hidden turing),
and farm
in
manufac¬
.
.
.
.
.
.
to Germany and France as exam¬
ples of what can happen to the
have
social and political structure of
risen from 90 to 250% or parity.
a country whose middle class has
Alvin Hansen can hardly be re¬
Neither labor nor farmers, nu¬
been weakened or wiped out by
garded as a "reactionary," yet,
merically the most powerful po¬
while advocating a policy of "full litical
inflation. As Mr. White writes m
pressure groups, have thus
employment," he added:
"Full far any reason to complain about his recent "Fire in the Ashes":
employment programs are loaded the effects of the inflation. They "When inflation happens slowly,
With
inflationary
dangers.
To are joined by the vast army of as in France, over a generation, it
deny that would be folly. We must mortgage debtors who were able slowly changes the habits and
learn what they are; and we must
to pay off their obligations in de¬ morals. Money is no longer as it
gird ourselves to master them." 23 preciated dollars. The farm debt, is in England or America, and
.Knowing the dangers, unfortu¬ for instance, declined almost 25% all the patterns of thrift, planning,
nately, is not enough. Many Ad¬ during the war years. That many decency, good taste that go with
ministrations have pursued eco¬ of the "inflation
solid money beeome stupidity.
profiteers" are
nomic policies, which they knew also owners of life insurance
The
quick, fox-like men leap
pol¬
were dangerous, but which seemed
ahead as they ride 'the inflations'
icies and
w^r bonds, and are thus
politically expedient. The failure among the "expropriated," does crests; the sharpsters, not the pro¬
employment" theory: the
inflationary dynamite. Professor
prices/
.
of the Truman Administration and
of Congress to enforce
a
deflation¬
policy after the war, and
especially after the outbreak of
the
Korean
conflict,
indicates
clearly how difficult it is to i&ake
the proper choice between sound
economic policy and momentary
political expedience. The Repubary
23 Alvin H. Hansen:
and
1947) p.
"Economic Policy
McGraw-Hill.
Employment,"
233, 234.
Full
not carry much weight with most
of them, since the increase in their
current income far
losses
suffered
Even
on
outweighs the
their savings.
prominent econo¬
mists, one finds the same tend¬
ency reflected in Dr. Keyserling's
statement of subordinating cur¬
among
ducer,
24 "The Wall
1953.
ideal
of
Accord-
Street Journal," Nov, 4,
Those
Slichter:
who
"Inflation
.
.
do
and
Savings:
in
the
edited
The Long View" in "Savings
Modern Economy, A Symposium,
by
Heller,
Boddy, and Nelson,
Press, 1953, p. 71.
26 Note the pressure for a
tightening
of the Taft-Hartley Act, and the
growing
number
of
state
"right-to-work" laws
Univ.
as
rency stability to the
maximum employment.
succeeds.
25 Sumner
the
of
Minnesota
indications of the counter-offensive of
middle
class against
of the unions.
power
27 Robert
L.
dollars
(1947-49
actually
=
declined
100) they have
from $4,680 to
social
A
the
Heilbronner:
growing
upheaval,
it
as
has
plagued Europe since World War I,
partly as a result of inflation, may
Un¬
^
increased
and the rise
the millions
rapidly,
be greatest for
of low and middle income families
whose needs
great but whose
are
limited buying power now. sharply
limits
consumption."30
of the "full employment"
philosophy, whose very ideal has
always been one form or other of
words,
according
to
the
CIO,
should be pushed higher
social
in
worried
have
not
the
"liberal"
sponsors
leveling, but it should give
for thought to the Eisen¬
food
hower
the volume of credit, or the crea¬
tion of public works is not infla¬
tionary,
the experiences of the
as
thirties have amply proven.
How¬
approach full employ¬
ever, as we
ment
(probably within about 4%
to 5%
of full employment: 2V2
million
unemployed
force of
64
out
million)
of
to
a
bottle¬
etc.), and eventually result
decline in domestic demand.
today.
we
find ourselves
"full
The
employment"
policy which the pvernment had
to pursue,
nolens volens, as an un¬
avoidable by-product of the war,
since
flict
1950
of the Korea
con¬
the
rearmament
pro¬
and
gram,29 has run its course. The
economy needs a new hypodermic
to maintain its pace.
just the
such
Can
we
ad¬
inflationary shot in
new
that it will restore
"full employment" without start¬
ing a new inflationary spiral?
a
way
Inflation
It
be done, no
can
system
Controlled Economy
or a
controls.
warned
doubt, by a
price and wage
Beveridge
rigid
of
As
in
Lord:
"Full
Employment in
Free
Society": "If trade unions
under full employment press wage
a
claims
of
a
unreasonably, maintenance
stable price leVel will become
impossible;
will
determination
become a function
wage
perforce
One wonders, how
union leaders, who are now
clamoring for an "aggressive" full
employment" policy, would be
willing to explain to their mem¬
bers
that
a
"full
employment"
of
to
generate
more
pur¬
power.
convincing
there is
obviously something wrong with
this popularization of Keynesian
economics, on which the whole
"full
employment"
doctrine
is
based.
Under the Keynesian
the
uninformed,
the state."
many
but
we have come to believe
high wages for low income
influence,
that
should automatically stim¬
groups
sufficient
ulate
of
demand
for
assure a
high rate
goods to
sumers
Inventories grow. Production has
outrun demand. Such is the situ¬
and
order
chasing
a
have experienced
as we
other
In
through government intervention
to
long as there are idle men
and idle machines, the increase in
in
wages
The argument seems
Administration.,
As
Actually,
employment.
not worked out that way.
reached
wages
con¬
it has
Factory
all-time
an
high
in
1953, and so did consumers'
income—yet demand has not been
maintained
at
ment"
course,
the
level.
"full
employ¬
is
One
of
that the postwar "full
employment" boom was financed
through a fantastic credit infla¬
1
tion which made possible a sales
volume
in
far
earnings.
answer,
of
excess
current
Commercial bank loans
increased
about
by $50 billion (165%)
1945, real estate credits by
$65 billion
(185%), and
short
and
since
intermediate
credit by
(almost
consumer
than $22 billions
more
400%).
Jobs
cre¬
were
ated and wages rose,
economy
as
dividual
ture
because the
whole and the* in¬
a
mortgaged, fu¬
going heavily
consumer
earnings
by
into debt.
But
the
there
is
problem.
another aspect to
It
that
possible
is
"over-saving" (due, according to
Keynesian economics and New
Deal politicians, to the fact the
groups
receive- an
share of the national
high-income
excessive
product) is not the only
unemployment, and that
cause
a
of
dispro-
rise in wages (disproportional to the increase in pur¬
chasing power of fixed income
groups) may cause a similar dis¬
location and thus ultimately un¬
employment? Our knowledge of
the flow of purchasing power is
portional
insufficient
still
question.
But
to
reason
to
the
answer
there
assume
consumption"
is
that
certainly
"under¬
the part of fixed
income groups, who have been
priced out of the market as a re¬
sult
ten
of
the
on
inflation
of
the
past
is contributing to the
decline in employment.
years,
present
Union
price
economists argue that the
increases
since
1950 *
were
not the result of
unjustified wage
necessitate the freez¬ hikes
unjustified, namely, in
ing of wages, as it did during the terms of "productivity." Actually,
war, when we had. deficit-rfinanced
the much-emphasized "increased
full employment/ Ordinarily, if
productivity of the workeri' is
union wage demands in a given
very often largely the result of
industry push the price of the additional capital investments
product to the point of diminish¬ rather than of greater skill or
ing demand, plants will close and harder work on the part of. the
workers will loses their jobs. John workers.
In
theory, therefore,
L. Lewis' coal industry offers a
most of the increase in income
due to increased efficiency should
perfect example.
really accrue to the factor of pro¬
In a free economy, the same can
happen—and often has happened duction which has made the in¬
crease
possible, namely the in¬
—to the
economy as a whole:
prices exceed thb ability and will¬ vestor, who provided the ma¬
program may
—
ingness of the people to buy.
a
result
28 From
White:
As
production, and eventuextracts
from
Theodore
in
the Ashes,"
William
1953—which appeared in
"The Wall Si feet Journal," Nov. 5, 1953.
Sloane
"Fire
Assn.,
29 The
"The
comfortable Paradise of Full Employ¬
ment," "Harper's," April, 1947.
spending for goods and
produc¬
tion f and employment are to be
maintained.
To achieve rising
levels of consumer spending, cur¬
rent disposable income must be
services must rise—if full
must
$3,740.
.
.
problematic
war,
ation in which
In
.
increased
from $3,600 to more
$4,300 since the end of the
measured in terms of stable
than
rugs,
fortable
.
have
staples), stimulate imports (e.g.
watches, steel tubing, toys, cheese,
consequences
tion levels." "The total volume of
consumer
per
exports (e.g. price-supported farm
of years.
.
total
nominally
mosphere
social
felt
the
it during the past decade—hamper
certain
themselves
make
course
While
savings
capita
the
of
Rising prices, wages and profits,
and increasingly sloppy cost con¬
trol—the whole inflationary at-
—Moreover, the more or less slow
expropriation of the fixed income
groups—and a 50% expropriation
within
15
years
can
hardly be
and
expansion" and "rising consump¬
run-away
According to classical economic
theory, booms come to an end as
they run into full employment.
can
"slow"—has
ajjd wage levels. According to the
CIO, we must have "continuous
a
prices and wages. The short¬
age. of steel in the early fifties
represents an example in point.
hardly
be
called an ethical decision, justify¬
ing the use of the term "injustice."
called
generations. But
has not been with¬
years
effect.
through the "full-em¬
ployment" policy, as the govern¬
ment supports the inflated price
inflation
"mild"
past few
of
Such a down¬
however, is to
adjustment,
be avoided
fortu¬
necks develop which tend to drive
thus
a
the
even
been
up
imply that the American
people will "naturally choose" on
basis of political considerations.
ward
country in not having
victims
the
been
have
inflation in three
labor
to
This may
We
nate in this
3
curb
inflationary
excesses than prevent depression.
From a political point of view, on
the other hand, the opposite tends
to be true: politicians find it easier
to spend than to economize. Pro¬
seems
thrive."28
out
ally prices decline.
wiped out;, those who grab,
—are
"..
price level involves greater injus¬
Thursday, April 8, 1954
annual
increase
in
chines.
the
extent
that
the
investor.
Moreover, there
able
and
defense
spending since 1950,.'e.g., has been equal
tp about 2 l/z times Che .value of the en¬
tire automobile industry.
To
major portion goes to labor, la¬
bor' gains at the expense of the
are many valu¬
essential activities in
Continued
30 CIO:
on
page
72
"Maintaining Prosperity,1";p. 24.
Volume 179
Number 5314... The Commercial and Financial Chronicle
(1599)
I ndications^ Of Curi^eif^^^ foU°Wing statistical tabulations
latest week
or
Business
Activity
week
T-
Previous
Latest
AMERICAN
IRON
AND
STEEL
Indicated
steel operations
Equivalent to—
Steel
ingots and castings
AMERICAN
Crude
»
PETROLEUM
oil
and
INSTITUTE:
(percent
of
Week
capacity)
(net tons)
Apr. 12
output—daily
(bbls.
average
Mar. 27
1,652,000
'«
6,452,150
6,461,150
117,000,000
7,013,000
7,123,000
Mar. 27
24,511,000
2,994,000
24,088,000
23,460,000
Mar. 27
2,539,000
2,365,000
Mar. 27
10,370,000
__Mar. 27
Stocks at refineries, bulk terminals, in transit, in
pipe lines— •
Finished and unfinished gasoline
(bbls.) at
Mar. 27
Kerosene (bbls.) at
.Mar. 27
Distillate fuel oil (bbls.) at—
Mar. 27
y,:
Residual fuel oil (bbls.) at
Mar. 27
8,371,000
_:
output
(bbls.)
Residual fuel oil output (bbls.)
.
ASSOCIATION
V
OF
AMERICAN
CIVIL
10,758,000
8,399,000
CONSTRUCTION
6,482,050
Total
U.
S.
Private
22,659,000
10,818,000
10,159,000
8,928,000
8,863,000
180,384,000
179,399,000
179,170,000
18,050,000
19,506,000
Mixed gas sales
18,417,000
CIVIL
EDISON
'601,426
609,959
595,031
715,333
588,724
590,590
590,002
667,828
Total
output
FAILURES
000
1
$329,541,000
$283,564,000
$208,148,000
198,852,000
163,272,000
100,956,000
158,480,000
1
130,689,000
120,292,000
183,556,000
1
113,699,000
99,031,000
107,192,000
89.237,000
160,207,000
Apr.
1
16,990,000
21,261,000
17,955,000
23,349,000
COTTON
61,670,000
6,755,000
510,000
530,000
=
100
95
90
112
8,463,000
Mar. 27
,1
'
8,491,000
8,586,000
Scrap steel
AND
INDUSTRIAL)
DUN
—
Electrolytic
(E. &
Export
1
267
277
223
4.634c
4.634c
4.634c
4.376c
refinery
on
Feb.
Feb.
on
(000's
$56.59
$56.59
$56.59
$55.26
Mar. 30
$24.33
$24.17
$23.83
$44.25
'
spindle
per
of
sales
to
1
at
29.700c
29.700c
29.700c
Public
from
ultimate
ultimate
,
——:
29.050c
29.300c
28.800c
OF
THE
FEDERAL
85,250c
120.250c
95.500c
94.000c
13.500c
13.000c
12.500c
13.500c
13.300c
12.800c
12.300c
13.300c
Mar. 31
10.250c
9.750c
9.250c
11.000c
Apr.
110.52
99.96
99.89
94.53
Apr,
110.88
110.88
109.97
106.56
116.02
115.63
109.79
113.12
112.19
108.70
Shipments from mills
110.34
109.60
105.86
Stocks (at end of month—barrels)
,
104.66
104.48
103.13
109.60
109.60
107.80
110.70
110.15
112.37
112.19
112.00
108.88
6
2.45
2.50
2.51
2.89
Apr.
6
3.12
Apr.
6
.
.
Group
3.12
3.17
2.85 ;
2.85
2.87
3.00
3.05
3.15
3.19
Apr.
6
of
at end
of
II
period
PRICE
437.6
435.4
426.8
;
222,161
211,110
212,753
231,803
239,337
245,325
228,258
247,441
27
90
92
88
"
355,230
375,158
320,960
455,688
107.13
108.03
107.78
Customers'
Dollar
905,313
871,712
$37,580,870
$40,655,258
$39,583,535
$39,800,077
908,256
977,923
848,192
874,256
Mar. 20
value
■
„
Other
7,855
7,792
9,757
970,131
838,435
869,035
$38,099,914
$41,514,314
$35,777,843
$34,205,705
,
OF
MEMBERS
305,420
332,440
278,950
332~440
2781950
285,870
251,110
Mar. 20
256,550
297,640
302,240
328,220
424,290
439,640
343,160
Mar. 13
9,148,260
10,113,300
9,491,4^0
8,497,950
_Mar. 13
9,476,480
10,537,590
9,931,050
8,841,110
FOR
ACCOUNT
OF
Other
Total
Other
sales
LABOR
PRICES,
—
Bismuth
934,170
1,090,790
938,550
889,780
291,210
373,000
22,500
282,500
211,920
Average
9,400
23,600
254,750
346,900
253,440
197,260
369,400
277,010
208,060
(1947-49:
264,150
482,368
REAL
85.034c
121.442c
$35,000
$35,000
$35,000
—
$200,444
$188,000
$198,115
31.970c
31.970c
90.833c
81,970
Mar. 13
372,764
377,675
367,310
358,605
—Mar. 13
415,004
418,675
423,730
440,575
S.
DEPT.
Mar. 13
1,602,271
229,000
1,384,324
,
1,613,3^
1,905,986
279,430
*£99,435
1,689,588
34.500c
35.000c
$86,889
$90,000
$2.00000
$1.72000
$2.07500
$1.75000
$1.75000
$2.15000
$2.6000G
$2.60000
$2.40000
21.500c
21.500c
27.000c
27.000c
26.423c
60.000c
60.000c
$2.25
(per pound)
$90,000
$1.70000
$1.72500
AVERAGE
YIELD
of
$2.25
20.500c
—
OF
March:
;
———
1,378,650
1,273,755
878,865
1,639,290
6.07
5.16
4.77
4.33
—
3.17
3.08
3.29
——,———
—
5.14
5.32
5.34
FINANCING
U.
S.
—
of
IN
HOME
Jan.
NONFARM
LOAN
(000's
BANK
omitted):
trust
I >
savings
.
•
banks.—
—
—
278,003
84,815
companies
290,925
128,307
211,986
237,527
——_
—
$568,926
262,978
•
$467,219
107,717
225,234
282,855
220,072
$1,372,242
companies
and
Mutual
5.36
6.92
5.09
4.81
(24)
—————
(10)
(200)
ESTATE
Bank
5.29
6.70
5.00
—
(not incl. Amer. Tel. & Tel.)
OF
5.07
———
__
Savings and loan associations—.
$1,622,326
$1,400,615
$476,706
111,469
126,079
92,827
1,538,415
260,640
1,397,255
Miscellaneous
lending
Institutions
221,538
264;660
Total
UNITED
OF
STATES
BUREAU
OF
EXPORTS
AND
CENSUS
Month
—
IMPORTS
of
.
.
'L
Feb.
(000's omitted):
_Mar; 30
110.9
110.8
110.7
109.8
_Mar. 30
99.9
99.6
99.0
98.3
Processed
_Mar. 30
105.0
104,8
105.2
104.6
_Mar.30
93.8
92.0
93.2
93.0
_Mar. 30
114.4
114.4
114.3
113.3
foods-
Meats
foods—--—
♦Revised "figure.
^Includes 630,000 barrels of foreign crude runs. "SBased on new annual capacity of 124,330 410 tons
■of Jan. 1," 1954, as against the Jan. 1, 1953 basis of 117,547,470 tons.
tNumber of orders not reported since introduction of Mon thly Investment Plan.
37.970c
28.500c
29.000c
$1.70000
;
STOCKS—Month
(125)
Insurance
100)
commodities—
commodities other than farm and
120.442c
28.500c
Individuals
Mar. 13
V.
84.034c
29.000c
pound)
(25)
AREAS
296,585
56,420
•Farm products
All
91.833c
10,800
Commodity Group—
All
74.000
$2.81605
(per pound)-—————
Banks (15)
Mar. 13
—,
85.250c
73.750
$2.81292
—
WEIGHTED
Utilities
Mar. 13
SERIES
85.250c
73.728
.
171,890
41,000
:
NEW
85.250c
$2.81448
——
plus, ingot
ingot
(per
717,890
457,126
sales
WHOLESALE
,
60.000c
757,930
42,240
"Short sales
Other
i:
pound)—
874,860
368,091
:—
;
Total sales,
£72.225
£70.681
-——_
(Check)-.
(per
215,930
*
Mar. 13
Total sales
;
(per ounce)
pound).
100. COMMON
1,075,860
Mar. 13
Total round-lot transactions for account of members—
Total purchases
—
r
£74.258
(pence per ounce)
BOARD—Month
1
—.
'
11.029c
Sterling Exchange—
Industrials
Mar. 13
purchases
•
£73.079
♦♦Nickel
floor
Short sales
t
(per long ton)—
(per
Mar. 13
sales
Total sales
\.
9.375c
Insurance
v
'
13.204c
9.637c
Mar. 13
off the
13.404c
12.935c
pound)—East St. Louis
(per
Railroad
Mar. 13
:
transactions initiated
34.451c
12.818C
29.289C
*"
177,360
Short sales
Other
29.000c
12.616c
Magnesium
floor—
purchases
29.669c
29.168c
£81.956
888,750
756,810
1
transactions Initiated on the
il
~
29.686c
_
£82.756
924,720
180,620
942,970
Mar. 13
i
56,000,000
12.735c
MOODY'S
*.Mar. 13
sales
I sales
77,797,463
18,000,000
£86.356
Mar. 13
Short sales
Other
32,574,078
MEM-
HERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
Mar. 13
,
96,869,054
£85.250
Cobalt, 97%
Aluminum, 99%
Mar 13
TRANSACTIONS
76.40
71,460,303
44,417,884
(estimated)
SCadmium
(SHARES):
Other
,
charges
tCadmium
Short sales
SOUND-LOT
after
([Antimony, New York Boxed
Antimony (per pound) bulk, Laredo
Antimony (per pound) Laredo—
Platinum, refined (per ounce)
tCadmium, refined (per* pound)
Total Round-lot sales—
Total sales
621,106,161
83.59
-21,500,000
railway operating income before charges
income
§§New York, 99% min,
Gold (per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)
285,870
305,420
Mar. 20
sales
812,981,712
626,806,095
81.26
70,276,316
_
New York Straits-—-
Mar. 20
L_
749,825,836
586,933,588
*
Silver, New York
TOTAL ROUND-LOT STOCK SALE8 ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
*
722,334,399
y
—
——
sales
ACCOUNT
expenses
Sterling Exchange
■y."-r-
FOB
operating
Silver and
5,221
900,401
Mar. 20
Round-lot purchases by dealers—
Number of shares—_
...
RRs.)—Month
revenues—'
Silver, London
Mar. 20
Number of shares—Total sales
■ ' Short sales
t.
operating
Common, New York (per pound)Common, St. Louis (per pound)——
ttPrompt, London (per long ton)
908,548
Round-lot sales by dealers—
I
79%
(AS¬
ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)
849,612
Mar. 20
sales
AMERICAN
ROADS
January:
Zinc
Mar. 20
other
21,294,000
84%
Lead—
107.19
Mar. 20
Customers' short sales
,
t
*19,231,000
tfThrce months, London
2
Mar. 20
Odd-lot purchases by dealers (customers'
sales) t—
Number of shares—Total sales
OF
CLASS I
-Copper (per pound)—
Electrolytic domestic relinery
Electrolytic export refinery
COMMISSION:
Odd-lot sales by dealers (customers' purchases) t—
f.
13,520,000
PRICES (E. & M. J. QUOTATIONS)—
Average for month of March:
94
Mar. 27
Apr.
Dollar value
18,856,000
14,130,000
METAL
4BTOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE
Number of shares
EARNINGS
Net
413.5
27
20,243,000
25,857,000
Net
3.47
3.38
,.;-v
INDEX—
100
=
17,769,000
—
3.23
Mar
OIL, PAINT AND DRUG REPORTER
AVERAGE
3.29
3.16
185,900
11,143,000
—_
(barrels)
Total
3.61
3.06
188,500
138,600
MINES)—
Taxes
3.13
♦164,400
T
Operating ratio
3.05
Mar
(tons)
3.13 r
175,700
74%
3.40
3.56
OF
January:
SOCIATION
3.18
Mar. 27
,
activity
Unfilled orders
136
146,600
(barrels)
3.24
-
(units)
(units)
(BUREAU
Total
3.36
.
of
RAILROAD
ASSOCIATION:
(tons)
Percentage
3.i9
3.04
(tons)
Production
1949
6
—Apr;
INDEX
PAPERBOARD
,6
—Apr.
.
COMMODITY
3.48
3.19
£pq
Utilities
Orders received
134
124
Capacity used
of
Apr.
3.47 'V
MOODY'S
Month
106.21
Apr.
,L
NATIONAL
125
February:
CEMENT
Production
104.66
110.70
of
Domestic gas range shipments
102.30
Apr.
I__ Apr.
:
Group
Group
TION—Month
Automatic gas water heater shipments
PORTLAND
Group
Group
—
Public
48,442,683
574,587,100
GAS APPLIANCE MANUFACTURERS ASSOCIA¬
Mar. 31
corporate
Railroad
49,899,065
31,928,126
'
Feb.:
of
Mar. 31
Group
Industrials
'589,705,300
adjusted
Mar. 31
3.15 vry
'
RESERVE
SYSTEM—1947-49=100—Month
34.375c
3.00
Aaa
311,624,200
50,006,954
—_
at
MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds
Average
33,039,679
consumers—
customers—month >of
at
Utilities
Industrials
517.5
28.450c
Mar. 31
at
corporate
Railroad
431.5
Unadjusted
Baa
i'
9,561,000
place
(000's omitted)
.Apr.
Average
in
INSTITUTE:
January
Seasonally
Zinc (East St. Louis) at.
t;
MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
.
20,277,000
8,631,000
34,235,499
Feb—
——
ERNORS
QUOTATIONS):
—
•
23,075,000
19,652,000
•8,697,000
—
omitted)
110.34
Louis)
22,920,000
19,656,000
27
27
113.12
(St.
22,897,000
COMMERCE):
Number of ultimate customers at Jan. 31—
Mar. 31
(New York)
(New York)
Lead
79,383
123
OF
116.02
Lead
424,933
68,643
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
copper—
tin
238,444
442.1
(DEPT.
ELECTRIC
January
171
Mar. 30
;
Domestic refinery at
Straits
349,803
'
Month
3
Mar. 30
J.
504,316
56,864
hours
27
EDISON
Revenue
Apr.
M.
307,087
125
8,019,000
695,732
406,667
i
-
hours
spindle
Feb.
&
(per gross ton)
METAL PRICES
spindle
Active
459,514
municipal-
—-
Kilowatt-hour
ton)
gross
$1,200,048
•
545,97C
...
Apr.
IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)
(per
$766,601
$952,637
.
__
Spinning spindles in place
325,000
100
.
——
INDEX—FEDERAL RESERVE
BRADSTREET, INC
Pig iron
256,955
of
—
Spinning spindles active
8,363,000
474,000
Mar. 27
6,750,000
and
SPINNING
"Active
_Mar. 27
construction
construction
Federal
$342,036,000
1
kwh.)
(COMMERCIAL
S.
construction
State
Apr.
AVERAGE
(in
U.
Private
ENGINEERING
;
(000's
Public
ELECTRIC INSTITUTE:
Electric
108,485
315,680
omitted)
■
.'
5,244,402
79,063
l
EN¬
—
NEWS-RECORD —Month
March
Apr.
SALES
CONSTRUCTION
GINEERING
coal and lignite (tons)'
Pennsylvania anthracite (tons)
STORE
ENGINEERING
59,757,000
BUREAU OF MINES):
SYSTEM—1947-49
6,161,548
83,761
309,611
41,002,000
—
DEPARTMENT
5,609,824
5,791,528
(M therms)
69,137,000
Bituminous
V'.'
6,556,291
Manufactured gas sales (M therms)
162,878,000
17,989,000
Apr.
S.
6,184,900
(M therms)
Natural gas sales (M therms)
45,941,000
municipal
(U.
7,274
■
Total gas
2,411,000
63,341,000
i
Federal
COAL OUTPUT
89,895
30,052
February:
44,507,000
Public construction
State and
110,291
39,319
of Jan.
61,435,000
construction—
construction
Ago
AMERICAN GAS ASSOCIATION—For month of
7,000,000
NEWS-RECORD:
'
Year
Month
116,247
end
Mar. 27
-
Previous
in the U. S.
of cars)__Mar. 27
(no.
of that date:
,
(in short tons)—Month of January
RAILROADS:
(number of cars)
freight received from connections
ENGINEERING
(BUREAU OF MINES):
Production of primary aluminum
2,230,000
-
are as
Month
ALUMINUM
44,093,000
Revenue freight loaded
Revenue
of quotations,
cases
either for the
are
Latest
98.9
6,303,050
Mar. 27
(bbls.).:—
.
in
or,
Stocks of aluminum .(short tons)
(bbls.)
oil
that date,
Ago
69.3
*1,648,000
§1,626,000
^production and other figures for the
Year
Ago
*69.1
•;
on
cover
Dates shown in first column
of
_
,
Kerosene output
Distillate fuel
Month
INSTITUTE:
condensate
42 gallons each)
Crude runs to stills—daily average
Gasoline output -(bbls.)—.
„
month ended
Week
§68.2
Apr. 12
or
month available.
71
as
'$1,169,000
Imports
♦Revised
$1,089,900
$1,197,000
792,000
Exports
-
836,900
855,928
figure.
tBased on the producers' quotation.
tBased on the average of the
producers' and platers' quotations.
iAverage of quotation on special shapes to plater.
11 Domestic, five tons or more but less than carload lot, boxed
8 § Price for tin contained.
♦♦F.o.b. Port Colburne, U. S. duty included.
ttAverage of dally mean of bid knd ask"
quotation
at
morning
session
from E. St. Louis exceeds 0.5c.
of
London
Metal
Exchange.
ttDelivered
where
freight
c
•72
The Commercial and Financial Chronicle.. .Thursday, April
(1600)
'•
*'
'■
of economic controls.
was
favored economic
70
Continued from page
comparable because capacity
they
were
Tall
and
nursing, where increased output
society, such as teaching
our
due
'mass-production methods
to
Should the teachsalaries remain
is not feasible.
nurses'
and
ers'
stationary, since as a group,
they
"increased productivity"? This has actually happoint
cannot
to
pened in many parts of the country, with the resulting demoralixation and deterioration of teach-
and
ing
nurses.
Nobody
net
obtain
to
trying
for
as
share of the national prodhe can. If he does so at the
expense of other groups of society, those who are being expropriated—to
use
the traditional
vernacular
of labor—have only
themselves to blame for not fight-
entirely
It is something
ing back.
if the govern¬
ment uses its power to support
the process of expropriation of the
middle class for the benefit of or¬
ganized labor, by guaranteeing
"full employment," thus making
it possible for union labor to de¬
mand higher wages without fear
different, however,
were
into
still
year
are
'
Electric Output Holds to Lower Trend in Past Week
The amount of electric energy distributed by
the electric light
industry for the week ended Saturday, April 3, 1954*
estimated at 8,463,000,000 kwh., according to the Edison Elec¬
and power
was
tric Institute.
The
current
figure represents a decrease of 28,000,000 kwh.
preceding week, but an increase of 444,000,000 kwh., or
the comparable 1953 week and 1,244,000,000 kwh., over
below the
5.5%
over
the like week in 1952.
Car
Loadings Decline 1.4% Below Previous Week
Loadings of
freight for the week ended March 27*
1.4% below the preceding week, ac¬
revenue
1954, decreased 8,533
cars, or
was
bottle-neck
we
we
The
.scarce—will have
according
workers
the war,
to
an
to
be
overall
capital.
ventories
increase
about 40
week,
was
one
rise
below week ago, but
was
steel
still only about 6%
under the 21-
during the March 15-20 period, "Ward's Auto¬
motive Reports" states.
The industry, "Ward's" reports, assembled an estimated 113,569 cars last week* compared with 117,034 (revised) in the pre¬
vious week.
A year ago
the weekly production
131,739.
was
Last week, the agency reported there were 21,838 trucks made
in this country, as against 22,151 (revised) in the previous week
and 28,997 in the like 1953 week.
"Ward's" estimated Canadian plants turned out 6,209 cars and
1,683 trucks last week, against 8,283
preceding week and 6,909
cars
cars and 2,094 trucks in theand 2,922 trucks in the comparable
1953 week.
Commercial
Slightly This Week
production since Feb. 21 was
"Steel," the weekly magazine of
and
Slightly in Latest Week
industrial failures dipped slightly to
the week ended April 1
267 in
from 277 in the preceding week, Dun &
Bradstreet, Inc., reports.
Despite this down-turn, casualities re¬
mained considerably heavier than a year ago when 171 occurred
or
in 1952 when there
were
185.
In comparison with the pre-war
level, however, mortality continued 14% below the toll of 310 in
the similar
week
of
1939.
Failures
involving liabilities of $5,000 or
to 230 from 238 in the previous week, but
declined mildly
more
notably higher
Among casualties:
with liabilities under $5,000, there was a slight dip to 37 from
39, yet they exceeded their 1953 toll of 20 for the correspondingweek.
The number of businesses failing with liabilities in excess
of $100,000 fell to 15 from 29 a week ago.
than
the
151
All
the
of
this
of
size
week's
recorded
decline
last
were
year.
occurred
in wholesaling where
construction, down to 34 from
38, and in commercial service, down to 16 from 22.
In contrast,,
manufacturing failures edged up to 52 from 49 and the retail toll
casualties dropped to 19 from 39, in
climbed
all
ingot
says
Business Failures Ease
146
to
from
129.
industry and trade
Mortality exceeded the
groups
with the sharpest
1953
level
in?
rise from last:
concentrated in retail trade.
year
of the nine geographic regions reported mild decreases
the week, including the Pacific and East North Central
Only one area, the Middle Atlantic Region, showed an
appreciable increase in casualties, climbing to 105 from 85 and
Five
during
States.
a post-war peak.
Meanwhile, South Atlantic failures
More concerns succumbed than last year in ali
regions except the Mountain States which remained unchanged..
The most notable rises from 1953 appeared in the East Nortb
Central and South Atlantic Regions.
reaching
held steady at 27.
point from a revised rate, and put the
capacity, the highest since the week ended
to
slightly
more
than
some
sharp enough
declines in others,
offset
upturn in steel production is forecast by
a
survey
and
34%
reported
reported no significant change. The average
in steel inventories in February over a year
days
in
to
inventories
reduce
position to
resume
to
normal levels
purchasing at
a
and
rate
place
equal to
American
-
Iron
and
Steel
Institute
announced
that
the
operating rate of steel companies having 96.1% of the steelmaking1
capacity for the entire industry will be at an average of 68.2% -of
capacity for the week beginning April 5, 1954, equivalent to
1,626,000 tons of ingots and steel for castings, as against 1,648,000
tons and
69.1% (actual)
a
week ago.
duction 1,652,000 tons.
a
month ago the rate was
A year ago the actual
&
sharp rise last week, the eighth in a row, lifted the
wholesale food price index for March 30 to
Bradstreet
$7.42, the highest level since the index was started in June, 1916.
the current figure is up from $7.34 a week ago, and compares
with $6.32 a year ago, or a gain of 17.4%.
It reflects
of 24.5% over the pre-Korea level of $5.96.
index
The
of 31
foods
in
an
advance
represents the sum total of the price per pound
general use and its chief function is to show the
general trend of food prices at the wholesale level.
Wholesale Commodity Price Level Lacked Signs of a
Definite Trend in Past Week
The
showed
general
little
level
definite
prices held in a narrow
during the past week.
of
trend
range
The
and
daily
wholesale commodity price index, compiled by Dun & Bradstreet*
Inc., finished at 278.42
on
previous and with 279.89
cash
March 30, comparing with 278.57
a
year
a
week
ago.
Grain prices trended generally downward the past week. The
wheat market was unsettled as values dropped sharply in¬
fluenced by the receipt of moisture in
western
drought
area,
coupled with
some
portions of the south¬
less active
mill
and
export
Corn
a
displayed relative firmness aided by small receipts and
Rye prices drifted sharply
reflecting large supplies in the Chicago area and the possi¬
good demand in the cash market.
lower
bility of more imports from Canada.
Oats finished slightly lower as demand continued
spotty.
Activity in grain and soybean futures on the Chicago Board of
Trade expanded sharply last week.
Daily average purchases
totalled about 60,600,000 bushels, as compared with 42,900,000 the
previous week and 35,400,000 in the
same week a year ago.
•
Domestic demand for hard wheat
The industry's ingot production rate for the weeks in
now based an annual
capacity of 124,330,410 tons as of Jan.
For the like week
Dun
demand.
Judging from inquiries out now for general requirements, the
Navy and other government services will buy more steel in
April than they average per month in the first quarter of this
year, this trade magazine notes.
'
High at 24.5% Above Pre-Korea Level
A further
showed
current usage.
The
Wholesale Food Price Index Attains New All-Time
1
themselves
as
ac-
This
and $2.6
January
roughly 14%. Their steel purchases in February of this
year ran approximately 30% below the 1953 peak.
Replies in the
survey suggest that the majority of steel users would require
were ' allocated
during
when "non-essential" in¬
—system and allocate capital
of
ago was
allocated
have
end
purchasing will have increased almost 20% over February.
Thirty-seven per cent of the firms reported their steel in¬
ventories in February of this year were higher than in the cor¬
responding month of last year, 29% said they had reduced in¬
always
Instead, we would
the
the metalworking industry will increase around 36% above the
February level by May 15, if expectations of executives of a large
segment of the country's metalworking industry are realized
fully. The survey was based upon reports from 240 steel con¬
suming companies and further indicated that by April 15 steel
prices
virtually
i» follow the British—and Soviet
at
by Solar Steel Corp., a nation-wide steel warehouse firm, with,
general offices in Cleveland. It found that steel purchasing by
an
dustries were restricted in hiring
Jielp. Nor can the goverment per¬
mit the unregulated investment of
in
past
A further
prices
plan,
than
it states.
Scarce resources—and under "full
is
rise
the
Ago
Automotive production for the latest week dipped slightly to
1953 when
last
improvements
The resulting vaccum will have to
T>e filled by centralized planning.
labor
behind
10%
were
first
Falls 2% Below
Level of Week
total for the year
valued at $80.3 billion as of February 28.
were
million higher
Not all districts made increases but
eliminated the market mechanism.
employment"
vehicles, about
1,764,923
of
\
March 7.
wages,
have
at
week's pace at 69% of
in 1952, with
premiums for
control
profits,
U. S. Auto Output
or
metalworking.
last temporary price rise.
Once
Studebaker
week.
1953.
The
the
products, and
$193
recorded
situation
black-market
over-time,
Oper¬
Hudson worked four days
Steel Production Scheduled to Drop
•
great steel strike
over-employment,
Tuesday.
running ahead of their 1953 volume to date, despite a 20%
stocks to
the
after
last
of
Wednesday
on
noon
At the February sales rate, business firms had enough
1.9 months, compared with 1.7 months' supplies a
year earlier.
Though inventories increased in February, the
month-end total was down $2 billion from the peak last October.
ary,
supply and demand. Simi¬
larly we shall find that the "full
employment" policy, if actually
.successful in achieving maximum
employment, will necessitate wage
and price controls.
Nor can we
tolerate strikes, since they result
in unemployment in related in¬
dustries, and even after a major
-strike has been settled, the econ¬
omy does not return to a "full
employment"
equilibrium,
but
the desire to "catch up," to fill
a
close down at
to
slightly over $43 billion. This was $362
million under the January volume and $1.6
billiop below Febru¬
tween
it
stands
February sales
going to do the same with
regard to wages and industrial
production? We have found that
<ifarm price support is impossible
without production controls, yet
thus far production planning by
government authorities has not
led to a reasonable balance be¬
experienced
it
billion above the year-earlier level.
we
we
forced
resumed
were
and retailers
of farm
world
market; at heavy expense to the
American taxpayer and consumer.
back-orders, produces
cording to the Association of American Railroads.
Loadings totaled 601,426 cars, a decrease of 113,907 cars
15.9% below the corresponding 1953 week, and a decrease
124,061 cars or 17.1% below the corresponding week in 1952.
slowed by eight inches
They have turned out 107,884 cars and
26,289 trucks to push the year's total figure to 134,173 units.
Manufacturers, the United States Department of Commerce
reports, sold $23 billion worth of goods in February. The dollar
volume was unchanged from January, but $1.1 billion less than
in February, 1953. Inventories of manufacturing firms on Febru¬
ary 28 were valued at $46.3 billion. This was $500 million lower
than at the end of January, but $1.'5 billion above the year-earlier
level.
New
orders
received
by manufacturers in February
amounted to $21.4 billion—a $400 million gain over January. These
bookings, however, were $2.6 billion less than in February, 1953.
Business inventories, it further reports, rose in February,
while sales declined. Stocks held by manufacturers, wholesalers
drastic
from
,,V
was
drop in truck production.
While de¬
farmer
American
which
Industry
gains, while Pontiac and Cadillac held
1,952,530 units were assembled, notes "Ward's."
Canadian manufacturers, this trade authority points out, are
system of insulating
a
snow
now
signed at first to cushion the im¬
pact of a drastic change after
World
War
I,
the policy
has
and
lower than capacity in 1954.
of Jan. 1, 1953.
as
week high attained
5
page
The United States combined car and truck
support program, which has
consumption patterns.
for
The operating rate is not
The;
based on annual capacity of'
98.9%.
was
and will be down this week.
employment" drive have on
the economy as a whole? Would
it help to remove the basic forces
of
disequilibrium, or would it
prove merely a palative, another
hypodermic, to obscure the need
for adjustments after the recent
inflationary excesses? 'For almost
forty years, we have pursued a
changing
from
produced only trucks at South Bend.
"full
to
during the postwar years of credit
inflation, over-employment, and
often excessive wage demands and
price
advances.
To
perpetuate
these excesses will not cure the
ills which worry us today,
firm, it adds.
The Kaiser-Willys plant in Toledo
present situation, and
assuming that the decline in con¬
sumers' demand is in part due to
the fact that fixed income groups
have been priced out of the mar¬
production
spectre?
face today, were created
we
The State of Trade and
Given the
*
—
which
mobile and Buick showed
population.
as
117,547,470 tons
2%
of wages will result in the
expropriation by government fiat
of a substantial segment of the
Are
percentage figures for last
toward
step
a
"Orwell
not worried about the growth
Continued
ing
the
today
see
who advocated the "full employment" doctrine which crystallized
jn the Employment Act of 1946,
ations
grown
not
social and economic dislocation,
They did not see—and they do not
Not necessarily. The New Dealers,
of
prevented the adjustment
another
Eighty-four"
"Nineteen
pricing themselves out of the
market.
In the long run,
"full employment" without freez¬
what effect would a
just
conclusion,
labor
farm
process
a
"Mild" in¬
a step to
or
8,1954
■
them
that "full employment" at any price might be good
politics for a short time, but that,
jf "successful" in creating full empioyment, it may also turn Amerjca jnt0 a regimented society, and
enterprise econ- may seriously weaken our ecothe vague goal of nomic system. Cyclical troughs—
American free
omy to achieve
of
ket,
to
"full employment' ?
the peaks and valleys in business
the acute shortage of
Is this 'picture of where the and employment — can best be
"full employment" policy may eliminated by preventing inflacan
blame a union lead us, if carried to its logical tionary
booms.
The
problems
a
as
"prosperity,"
cording to the over-all plan of
the central planning authorities.
This may please those "on the
left" who favor a "socialist organization of the national economy ... as the one certain way to
guarantee full employment," but
are we ready to sacrifice the
to
leveling.
flation seemed
placed at 2,230,000 tons
>
•
.
worker
large
adverse
of economic
Employment and Its Dangers
In fact, they
"planning." Nor
*
1954 is
1,1954.
69.3% and
pro¬
weekly production
bakery flours was generally
slow except for moderate bookings of Spring wheat types around
as the result of price concessions by mills.
Butter and
displayed increasing weakness with the approach [of the
lower price support levels to go into effect April 1.
The raw and
mid-week
cheese
.Volume 179
Number 5314... The Commercial and Financial Chronicle
refined sugar markets were
this weefc.^
ki
v*
■■
*
largely dominated by the dock strike
* ill
.i:)oiRt-.. c.rv1*-"u•
>'«
covering
limited
offerings.
Warehouse stocks
of
en¬
added to his committee for
showed
cocoa
a slight decline to 115,254 bags, from
120,620 a week earlier, and
compared with 72,000 bags on the corresponding date a year ago.
Strength in lard was well-maintained under active buying influ¬
enced
by news of impending purchases
cessful
Ludwell A. Strader, Chairman, Municipal Committee, National
Security Traders Association, Inc. has announced that David H.
Callaway, First of Michigan Corp., New York 5, N. Y., has been
Cocoa prices advanced sharply to reach new
high ground for
season
as
increased trade demand and short
countered
Relations—Henry Oetjen, McGinnis & Company, New
York City.
highs but turned somewhat easier at the close.
the
manage
in seven
ond Vice-President.
swine
With
receipts
last
week
the
smallest
six
in
months,
years.
of
influenced
times,
methods, have
after
our
Could
become
our overseas:
all,
there
not
i»
of doing"
way
our
persua¬
effective
more
strengthen
the
allies
our
entire free
and
to*
fortify
world?
DIVIDEND
"*
NOTICES
r
Runyan, Hemphill, Noyes & Co., now on the board
will become Second Vice-President, and John E.
governors,
Knob, Drexel & Co., will succeed him
pressure
by the absence of aggressive mill demand,
price-fixing and news that the severe
AMERICAN
the board of governors.
on
CAN COMPANY
STANY-I. T. A. OF PHILADELPHIA BOWLING MATCH
tapering off of export
a
bit to
a
suc¬
Wallace H.
Spot cotton prices moved irregularly in a rather narrow range
and closed slightly lower than a week ago.
Trading in spot mar¬
kets declined moderately. There was considerable
selling
at
that,
yet
as
our
73
;
an¬
hog prices continued to rise and touched the highest March levels
Holand.
and
friends
sion
Philadelphia have
that
nounced
ideas
OF PHILADELPHIA
The Investment Traders Association of
not
yet convinced
as
business.
INVESTMENT TRADERS ASSOCIATION
Germany and
not
do
merchandise
to
quite
1954.
Joseph R. Dorsey, Merrill Lynch, Pierce, Fenner &
Beane has resigned as first Vice-President of the group, since he
has been transferred to New York City. He will be succeeded by
Edgar A. Christian, Stroud & Company, Incorporated, now Sec¬
by West
abroad
salesmen
Public
record
new
Publicity-^Jer,ry Tegeler, Demjisey-Tegeler & Co., St. Louis.
.,rc,
ws•
■
Coffee trended higher most of the week to reach
*•
(1601)
COMMON
STOCK
•
drought conditions in
tered rainfall.
some areas of the belt were relieved
entries
in
the
large
as
as
Philadelphia will be held May 6 at the City Hall Bowling Center,
23 Park Row (3rd floor), New York City, from 5:30 p.m. to 8:00
p.m.
A dinner will follow the bowling at the Antlers, 67 Wall
Street, at 9:00 p.m.
withdrawals.
week
ended March 19 were up
sharply to
bales, and compared with repayments during the same
period of 86,600 bales, the largest weekly volume thus far this sea¬
son.
Outstanding loans on 1953-crop cotton as of March 19 to¬
83,600
talled
tax
cuts
April
on
resulted
in
and
weather
freak
sales
SECURITY
result of excise
throughout
decrease
from
the
the
Wednesday
last
of
continued
week
reflect
to
nation
able
year ago.
Regional estimates varied from the
compar¬
continued
to
be
unchanged from the preceding week and
were
below
the
similar
1953
mark.
Snow
wind
and
in the latter part of the week served to
dampen the
storms
appetite for Spring and Summer apparel.
clothing increased, while purchases of women's wear
sumer
con¬
Children's
steady
were
on men's
clothing dipped somewhat from the preced¬
Spending for shoes was sustained.
Housefurnishing sales dipped slightly from the preceding
There
continued
to
be
somewhat
marked variations
were
below
the
in volume
Point Club
the close of business
April 22. 1954. Transfer
books will remaip open. Checks will be mailed.
EDMUND HOFFMAN,
.
:
Bowling
Inc.
the
wholesale
trade
in
the
period
ended
No. 79, 20tf per
30Vz
30
payable
28V2
27^2
record
to
The
be
country-wide basis
a
as
taken from
the Federal Reserve Board's index for the week ended
1954, decreased 11%
the
below
the
level
previous week, March 20, 1954,
from that of the similar week in
March
-"Jan.
27, 1954,
1
to
March
27,
1954,
For the four weeks ended
reported.
For the period
department store sales registered a
was
decrease of 5% below the corresponding
Retail
trade
trade
volume
estimates, showed
in
a
March 27,
the
preceding week. In
decrease of 13% was reported
1953.
decline of 11%
a
a
of
period of 1953.
York
New
last
week,
according
to
changed to 10% under the dollar volume of
24
22Vz
LONG ISLAND LIGHTING COMPANY
14
Notice of
11V2
Quarterly
i*.-
COMMON
JfTTj-T' 'i. ' 7
i'i
r
The
as
Government's
enna
the
ward
attitude
The ^Austrian
the
rest
of
Trade
that "American
assistance has involved
reduction
to¬
has markedly de¬
S.
U.
teriorated.
Minister declared
a
substan¬
with
trade
our
the world,"—meaning
of
the East. (Austria's eastward trade
multiplied
since 1951.)
Un¬
has reached 300,000,
(partly with
diametrically
poorer
trend
that in
the
U.
and
S.
ment providing excellent soil
social
age"
fixation,
such
reported.
decline of 2%
a
•Comparison period begins with the Jan. 4-9 week
Jan. 5-10. week in
was
in
1954
and
was
with
the
7
'
•
from
page
■
•
7,
'
sion."
H
.
S.)
(U.
present
;
Continued
.
.
.
of the
1953.
,
Other
Vienna aid mis¬
,
adverse
developments
be discerned elsewhere. In
Greece, productivity has increased
at a slower pace than anywhere
in the Marshall Plan sphere.
In
may
NSTA Notes
as
or
help New York in their party plans, an indication as to whether
not you expect to go—market willing—will be helpful.
There have
been
no
plans drawn
up
for
a
meeting with the
SEC in May as it is hoped that the Commissioners and some of the
staff will be in Atlantic
City for
a
round-table discussion of SEC
problems.
The
The
membership today stands at better than 4,000 members
City has been added as an affiliate this year.
following
for
by the National Union of Tailors
&
Garment
the
were
appointed Chairmen of the various
com-
coming year:
Advertising—Harold
B.
Smith,
Pershing
&
Company,
New
Convention—Edward H. Welch, Sincere & Company, Chicago.
Inc., Philadelphia.
fair
& Co.,
1
Municipal—Ludwell A Strader, Strader, Taylor & Co., Lynch¬
burg, Va.
the
"prin¬
shares
when
(The
work
"Wall
wondered
"what
plentiful."
Journal"
Street
Mr.
because
violated
would have happened to him
had cut the price as well.")
insisted
upon
if he
The
by man1-
agement in many parts of Europe,
have
Victor Mosle.y, Stroud
Membership—Graham Walker, Joseph McManus & Co., New
York City.
of
not
low wages
York City.
Corporate and Legislative—R.
ciple
was
Workers
had
Prosser
and Salt Lake
mittecs
Britain, Mr. Ernest Prosser, a
tailor, was recently fined 10/6 sh.
for cutting two suits more than
his quota. The fine was collected
been
commented
upon
Harold E. Stassen, Director of
FOA.
by
the
They will hardly enable the
majority of Europeans to become
buyers
in
rich
quantities
goods. Thus, the
appreciable
of manufactured
get richer and
the poor get
shares have
to
holders of
been surrendered and'
exchanged for the
new
Common Slock.
VINCENT T. MILES.
Treasurer
March 31, 1954
completely
a
dis¬
get-rich-quick scheme,
influenced
the
thinking of
ployees had bought
decrease of 7%
27,
or
credited
with the tacit consent
a
March
1954,
registered under that of the 1953 period.
<
Deposit for said Stocks)
consequent
extremism, in¬
cluding Communism.
The "lowest-possible-wages-&highest-attainable - profit-percent¬
thereafter
27, 1954,
to
to
inclination toward
workers
1
he distributed
for
calls malpractices were developed
period "Jan.
force.
1952, the "Times"
quoted Austrian officials as being
not
the old Preferred Stocks of Queens Bor¬
ough Gas and Electric.Company and Nas¬
sau
& Suffolk Lighting Company until
Henry Ford was a sort of fellow-
labor
April
a
"perplexed" by belated American
demands, "not because they could
not have been met, but because
practices that Washington now
the total
of
on
tension, the growth of pop¬
ular frustration and
some
the
to
the close of business
develop¬
a
And already in
15%
a
Company,
stockholders of
holders of the old Preferred and Common
Stocks of the Company (or Certificates of
aid)—a
opposed
to
27, 1954, registered a decline of 3% below the like period of last
year.
In the preceding week, March 20, 1954, a decline of 11%
was reported from that of the similar week of
1953, while for the
For
at
our
employment
i.e.
declared
cents per share
the Common Stock of the
16, 1954.
According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended March
four weeks ended March
STOCK
Board of Directors has
quarterly dividend of 25
.
7
U. S. aid
has become unnecessary, the Vi¬
has
year ago.
a
page
creasing neutralism;
tial
wide variation which ranged from un¬
Secretary
28
record
from
holders of
to
April 21, 1954.
26
Joe Donadio
204
..
share
1954,
15,
Dale Parker
Clashing Economic
Concepts of Two Worlds
somewhat.
on
May
close of business
This dividend will
on
orders for pre-Easter
Department store sales
at
payable May 1, 1954
Continued
was somewhat above the preceding week
moderately below a year ago. Hurried re¬
sales were quite common and many buyers
requested immediate delivery. Initial Summer booking increased
continued
on
April 1, 1954
27
day
r
•
Common Stock
on
Wednesday of last week
but
SYSTEM, INC.
following quarterly dividend:
32V2
through the nation.
in New York City were almost unchanged from a year
Pacific Coast cities reported substantial sales decreases when
compared with the similar 1953 period.
of
Secretary
The Board of Directors has declared this
y
205
-
H,y Frankel
GAS
Sales
volume
on
record at:
Dividend
212
Jack Manson
ago;
The
declared
was
Company, payable-
Stockholders of
5 Point Club
215
Joe Donadio
mark.
,year-ago
York,
of April 1, 1954 is as follows:
as
Roy Klein
ing week.
and
share
per
to
THE COLUMBIA
Points:
200
and volume
week
1954,
YORK
_
to
Apparel sales
NEW
(Capt.), Nieman, Gannon, Tisch, Greenberg__,
Serlen (Capt.), Rogers, Gold, Krumholz, Gersten
Donadio (Capt.), Craig, Gronick, Bies, Demaye__
Kaiser (Capt.), Hunt, Werkmeister, Swenson, Ghegan
Manson (Capt.), Jacobs, Topol, Weissman, H. Frankel
Burian (Capt.), Gavin, Clemence, Montanye, Whiting
Bean (Capt.), Bass, Valentine, Eiger, Bradley..
Klein (Capt.), Fredericks, Murphy, Weseman, Mewing..
Krisam (Capt.), Pollack, Cohen, Smith, Strauss, Define
Growney (Capt.), Corby, Siegel, Voccolli, Lienhardt
Hunter (Capt.), Brown, Alexander, Farrell, Barker
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
by the following percentages:'New England and
—3; East —5 to —1; Midwest and Southwest
—10 to —6; South —9 to —5 and Pacific Coast —8 to —4.
—7
OF
New
of
Team:
level
1953
Northwest
Association
Leone
a year ago as a result of the
shifting Easter date.
The total dollar volume of retail trade in the week was esti\
mated by Dun & Bradstreet, Inc., to be from 8 to 4% below the
a
ASSOCIATION
Traders
League standing
previous
decrease from
level of
TRADERS
Security
substantial
a
cents
the Common Stock of this
tions.
The total dollar volume of retail trade in the
period ended
week.
on
1
contra-seasonal
a
a
thirty-five
May 15,
made, including two drinks
and a roast beef dinner.
Those wishing to attend should contact
Sidney Jacobs, Sidney Jacobs Co., New York City, for reserva¬
Trade Volume Shows Perceptible Decrease
From Year Ago Due to Later Easter
of proposed price cuts as
On March 30, 1954 a
quarterly dividend of
A charge of $8 per person will be
6,276,300 bales.
The combination
bowling match between the Security Traders As¬
sociation of New York and the Investment Traders Association of
Another unsettling factor was the report that loan
■entries in the latest period were almost
Loan
The annual
by scat¬
has
that they are fully
OF ILLINOIS
convinced that
traveler when, some
he
INVESTMENT COMPANY
Europeans to such a degree,
94
decades ago,
TH
the
to
that
end
virtually
all
a
shortly
his
em¬
Ford car.
It
CONSECUTIVE
DIVIDEND
increased the wages of all his
ON COMMON STOCK
wk
The Board of Directors declared
KMg
a
ll!
regular quarterly dividend on
the Common Stock of 40 cents
per share, payable June I,
is, however, not considered anticapitalistic in these circles in Ath¬
1954, to stockholders of rec¬
ord
ens, Rome, Paris or Vienna,, that,
May 14, 1954.
even the sole keeper of a store is
compelled by the police to close
wk. The Directors also declared
hfs shop for several hours at noon¬
time and at early evening hours.
pM the regular quarterly divi||| dends on the 5Y±% Cumu¬
To sum up: in many areas out¬
li lative Prior Preferred Stock,
side our own (not only in Eu¬
the Series A $1.25 Convertible
rope!), prices are artificially high
||| Preference Stock and the4^%
and production unnecessarily low.
fpf Preference Slock, all payable
Man-hour output and mechanical
p| July 1, 1954 to stockholders
efficiency improve only at a snail's
|||l of record June 15,1951.
pace. Large segments of the popu¬
exist
lation
on
the
brink
of
dire
Initiative is governmentally throttled and investments are
j|
poverty.
being withheld.
distribution
mass
tion
of
Manufacture for
and the promo¬
large-scale merchandising
D. L. BARNES, JR.
Treasurer
AI,ri' 5» 1954
■
'
na-
|||
!?|f
tion-wide subsidiaries—principally:
|||
Financing the Consumer through
Public Loan Corporation
beyond rigid social barriers is
studiously discouraged because
Domestic Finance Corporation
"certain lower classes (admittedly
the
vast
Ohio Finance Company
majority- of prospects)
buy a frigidaire any¬
General Public Loan
wouH never
Corporation
how."
'■i'AV.w.
Thus, one cannot help but rnuto
feel
that our official
tinue
!74
The Commercial and Financial Chronicle... Thursday,
(1602)
Now in
Securities
^ Aero Service Corp., Philadelphia, Pa. (4/13)
JVlarph 29 (letter of notification) not in excess of $300,000 aggregate value of common stock (par $1). Proceeds
—For expansion of facilities and new equipment. Under¬
writers—Drexel & Co., Stroud & Co., Inc. and Hemphill,
Noyes & Co., all of Philadelphia, Pa.
if Air Express International Corp., N. Y.
April 2 (letter of notification) 2,000 shares of common
stock (par 50 cents), to be issued upon exercise of warf
50
at
rants
Whitehall St., New
Office—44
each.
cents
York, N. Y. Underwriter—None,
1
• Alaska Telephone Corp., Seattle,^ Wash.
Feb. 10 (letter of notification) $270,000 face amount
Natural
Gas Corp., Santa Fe, N. M.
notification) 748,000 shares of common
stock (par five cents). Price—40 cents per share. Pro¬
ceeds—To acquire properties and leases. Office — Blatt
Bldg., Santa Fe, N. M. Underwriter—Hunter Securities
Corp., New York.
Basin
if Beam (James B.) Distilling Co., Chicago* ll!»< "
April 2 (letter of notification) 2,000 shares of common
stock (par $2). Price—At market (approximately $8 per
snhre). Proceeds—To be a gift from M. ILRpgpr* VicePresident and a director, to charities.
S:
Water St., Chicago, 111. Underwriter—None. '
of
10-year convertible debentures, series B. Price—
70% of principal amount. Proceeds—For general operat¬
ing expenses and working capital. Underwriter—Tellier
& Co., New York.
Offering—Expected today (April 8).
6%
-
if INDICATES ADDITIONS
SINCE PREVIOUS ISSUE
Registration
Dec. 23 (letter of
Price—60 cents per
for
REVISED
ITEMS
t
Proceeds—To retire debt and
Office—930-17th St., Denver, Colo.
Allegheny Natural Gas & Oil Corp*. (Del.)
(letter of notification) 500,Q00 shares of comjtnon stock
(par one cent).
Price—60 cents per share.
Proceeds
To drill and complete wells, for improve¬
j
capital }
16'(letter of notification) 77,624 shares of
stock (par $1) being offered for subscription by
Feb.
shares held
(with
stock-
oversubscription priv- j
an
expire. April 9, Price—$3.75 per share.
Proceeds—For working capital and general corporate j
ilege); rights
Calif.
Angeles,
Office—727 West Seventh Street, Los
purposes.
Underwriter—None.;
New York
Proceeds—For investment.
market.
.
Price—At
capital stock.
''-
4
NEW; ISSUE CALENDAR
—
ments, to acquire additional oil and/or gas producing and
non-producing properties, leases or interests and for
working capital. Office—Titusville, Pa. Underwriters—
S. B. Cantor Co. and Northeastern Securities Co., both
.
(Bids
Mich.
(4/27)
April 6 filed 65,000 shares of common stock (par $5).
Price—To be related to the market price of the stock on
the American Stock Exchange at time of offering. Pro¬
ceeds—For advances to subsidiary. Underwriter—Hemp<
)
American Coffee-Matic
(Dixon
General Credit Corp
Dain
M.
&
Corp., N. Y.
if Anchorage Gas & Oil Development, Inc.
March 31 (letter of notification) 50,000 shares of com¬
mon stock.
Price—$1 per share. Proceeds—For acquisi¬
of properties.
(Drexel & Co.;
about
;
-
V
Proceeds
For working capital.
Office — 3717
Place, Glendale 8, Calif.
Underwriter—None.
General
(Kidder,
$2,000,000
General
.Bonds
be
to
.Bonds
$10,000,000
invited)
Debentures
Corp
Acceptance
Webber, Jackson & Curtis)
(Paine,
-
V
^I^c^^^^-.Common
$4,000,000
a.qi* EST)
(W.
Southern
Gas
(Bids
11
(Bids
Electric
Co
EST)
a.m.
a.m.
EDT)
$6,000,000
Preferred
11
to
be
invited)
New Jersey
(Bids
11
(Wednesday)
1,219,856
Allis-Chalmers Mfg.
Common
1
(Offering to stockholders—bids 10:30
a.m.
(Thursday)
EST)
11
a.m.
(EST)
Inc.)
$35,000,000
(Tuesday)
May 11
Bonds
a.m.
Preferred
Co
(Blyth & Co.,
shares
11
$25,000,000
CST)
Ohio Power Co
(Bids
EDT)
a.m.
.'.'..V.¬
250,000 shares
Northern States Power Co
Debentures
Bell Telephone Co
May 6
April 14
Bonds
$20,000,000
(Wednesday)
May 5
Bonds
$8,000,000
Common
11
$6,000,000
$20,000,000
Corp.)
EST)
EDT)
Wisconsin Electric Power Co.__
and
Texas Utilities Co.
(Bids
(Bids
Preferred
&
a.m.
a.m.
11
Co
Power
100,000 shares
Blyth & Co., Inc.;
& Co.;
First Boston
Indiana
Montana
Common
Peabody & Co.)
C. Langley
The
ide-ht*
(Bids
shares
1,500,000
Bonds
Montana Power Co
Consolidated Edison Co. of New York, Inc.__Bonds
$20,000,000
(Bids to be invited)
$50,000,000
-
—
Ohio Power Co.__
(Bids
Standard
York
common
stock
(par one cent). Price—At the market
(15 cents each to underwriter).
Proceeds—To Delbert
Replogle, President.
Underwriter—Geayhart & Otis,
Inc., New York.
No general public offer planned.
E.
(4/20)
70,000 shares of cumulative preferred
(par $100). Proceeds—To repay bank loans and
18
new
filed
construction.
Underwriters—To be determined
by competitive bidding. Probable bidders: Blyth & Co.,
Inc.; The First Boston Corp. and W. C. Langley & Co.
(jointly); Lehman Brothers, Equitable Securities Corp.
and White, Weld & Co.
(jointly). Bids—Expected to be
received up to 11 a.m.
(EST)
on
..Preferred
Uranium
(Gearhart &
General
Common
Corp
Corp.
Utilities
Public
(Offering
Otis, Inc. and Crerie & Co.) $1,787,500
Beane
Common
Corp.
act
may
about
$18,000,000
Montana
Corp
Common
Lynch,
Pierce,
clearing agent)
stockholders—Merrill
to
&
Debentures
(The First Boston Corp. and Kidder, Peabody & Co.)
York
(Wednesday)
May 12
$5,000,000
Fenner
600,000
as
shares
Debentures
Co
Power
(Bids 11
a.m.
EDT)
$18,000,000
(The First Boston Corp. and Kidder, Peabody & Co.) 220,000 shs.
Arkansas Power & Light Co.
for
(Bids
_
Bonds
Co
$20,000,000
& Light Co
Power
$300,000
Long Island Lighting Co.
A
stock
(Tuesday)
Illuminating
(Bids to be invited)
Delaware
Noyes & Co.)
Gas Corp.
Arcturus Electronics, Inc.
March 15 (letter of notification) 100,000 shares of Class
March
Electric
Common
and Hemphill,
(McLaughlin. Reuss & Co.)
Lincoln, Neb. and Cruttenden
pfd. and 85,909 shs. of common
$1,000,000
May 4
Devon-Leduc Oils Lt,d
—
$
Co.)
Cleveland
:
Stroud & Co., Inc.;
Laboratories, Glendale, Calif.
(letter
pursuant to an Employees Stock Option Plan.
Number
of capital shares to be offered will be reduced by num¬
ber of class B shares subscribed for.
Price
$8.55 per
Park
&
April 13 ^(Tildsday)
Aero Service Corp.___
(Monday)
(The First Trust Co. of
Debentures
$15,000,000
EST)
a.m.
$7,905,000
Kansas-Nebraska Natural Gas Co., Inc.
Preferred & Common
shares
Co
11
EDT)
noon
May 3
snares
Common
142,500
Co.)
(Bids
•"}
of notification) 1,764 capital shares
(par $1) and 882 shares of class B stock to be offered
share.
Gas
(Bids
Price—To
Research
&
" -(Bids '11:30
1,375,000 shares to 20 existing
public, 10 cents per share, and
to stockholders, one cent per share. Proceeds—To finance
exploratory and development operations.
Office—718
Majestic Bldg.>, Denver, Colo. Underwriter — Carroll,
Kirchner & Jacquith, Inc., Denver, Colo.
23
Telephone Co._
Gas Service Co.-
be offered to public and
if Applied
5,000
Equip. Trust Ctfs.
Southern Pacific Co
Common
-
(Courts
National Fuel
,
$18,000,000
underwriting)
(Thursday)
April 29
r
...Common
underwriting) 421,492 shares
stockholders—no
(Offering to
Bonds
EST)
noon
(Offering to stockholders—no
Office—505 Barrow
Underwriter—None.
April 5 (letter of notification) 1,775,000 shares of com¬
mon stock (par one cent), of which 400,000 shares are to
March
(Monday)
Bonds
$15,000,000
EDT)
noon
Wisconsin Electric Power Co
and
$600,000
Gulf Insurance Co
if Apex Uranium, Inc.
'
Co.)
Light Co
(Bids
Inter-Mountain
Transportation Insurance Co.,
City, Mo.
March 17 filed 20,000 shares of capital stock (par $100).
Price—$150 per share. Proceeds — To increase capital
and surplus. Underwriter—None.
Kansas
stockholders.
Jaffray & Hopwood
Piper,
April 12
American
St., Anchorage, Alaska.
Co.;
Central Power &
—For working
capital, etc. Office—20 Broad St., New
York, N. Y. Underwriter—Mid-West Securities, 164 Con¬
gress St., Brooklyn, N. Y.
(Bids
Preferred
shares
Light Co
&
Utah Power
Inc—Preferred
and Stone &
30,000
Corp.)
Securities
Webster
Common
Jackson & Curtis
Webber,
(Paine,
$299,960
Winston & Newell Co
Co. of Indiana,
General Telephone
$1,610,000
Inc.)
...
(Murphy & Co.)
March 22
tion and exploration
Noonan,
W'oodard Elwood
(letter of notification) 300,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
April 28 (Wednesday)
(Friday)
Bonds & Common
Bretscher
i
$6,000,000
CST)
a.m.
Cahokia Downs, Inc
(J.
hill, Noyes & Co., New York.
mon
11:30
C. jColJjngs & Co.)
Co. and C.
$5,000,000
&
Barney
J!riPreferred
April 9
of New York.
Allied Products Corp., Detroit,
(Smith,
Preferred
Breaker Co
I-T-E Circuit
April 8, (Thursday)
West Texas Utilities Co
April 15
.(Bids
Front Range
noon
CST)
J.
Cooney
&
Gordon
&
(Offering
$4,695,000
Common
Co.,
(Bids
$5,000,000
North American Uranium & Oil
★ B. S. & K. Mining Co., Phoenix, Ariz.
(letter of notification) 75,000 shares of comnmn stock.
Price—At par ($1 per share). Proceeds—For
(Israel
&
Co.)
(Tuesday)
to
be
invited)
.
Consolidated Natural Gas Co
Common
Corp
Bonds
$25,000,000
(Tuesday)
May 25
April 19 (Monday)
April 20.
Common
$150,000
Virginia Electric & Power Co
Common
Inc.)
stockholders)
to
May 18
$299,000
Co.)
Light Metals Refining Corp..
(Philip
First Nat'l Bank of Toms River, N. J
Equit. Ti;ust Ctfs.
Uranium Mines, Inc
(H.
(Friday)
May 14
(Thursday)
Chicago & North Western Ry
(Bids
$1,500,000
11:30
a.m.
Debentures
EDT)
$25,000,000
.
■;
;
March 31
Address —P.
mining expenses.
Ave., Phoenix, Ariz.
O. Box
4434, 242 S. 1st
Underwriter—None.
April 20
(Tuesday)
May 26 (Wednesday)
Arkansas Power & Light Co
(Bids
Claussen
11
Preferred
(Bids
Lane,
States
(Bids
Space
Power
10:30
&
Co.)
225,000
&
Temco
and
Aircraft
(-Van
a.m.
CST)
$15,000,000
Common
by Morgan Stanley
Coggeshall & Hicks), 131,836 shares
Common
Corp
Alstyne, Noel & Co.)
300,000
(Bids
11
Bonds
a.m.
Columbia
Gas
EST)
New York,
Boston
Philadelphia
Private IVires
Pittsburgh
San Francisco
to
all
offices
Chicago
Cleveland
System,
11.30
a.m.
EST)
(Bids
To get
the facts about how
productive, consult
65,000 shares
your
you can
make
your
advertising counsel
$50,000,000
The World's Greatest
>
Bonds
Edison Co
CDT)
reach effectively and
or
advertising
the nearest
CHICAGO TRIBUNE
......Common
a.m.
you
major investment markets in Chicago arid the
Chicago Tribune advertising representative.
$50,000,000
(Tuesday)
Corp
10:30
medium, the Chicago Tribune,
one
at one low cost two
Debentures
Inc
(Hemphill, Noyes & Co.)
Commonwealth
Thru
more
April 27
Allied Products
2Maitets at 1 Cost!
midwest—professional buyers and the general investing public.
$12,000,000
(Wednesday)
-1
(Bids
,
shares '
West Penn Power Co
April 21
Bonds
,
$50,000,000
Preferred
stockholders-r-nnderwritten
to
Co.
invited)
shares
Co
Peninsular Telephone Co
(Offering
to be
Common
Bakeries, Inc
(Johnson,
Northern
Public Service Electric & Gas Co
$7,000,000
EST)
a.m.
;
share for j
holders of record March 9 at rate of one new
seven
}
,
if Broad Street Investing Corp.,
March 19
'
.
March 31 filed 700,000 shares of
stockholders.
•
Bolsa Chica Oil Corp.
each
,
share.
working capital.
if Big Horn-Power River Corp;
stock (par 10 cents) to be offered to
f
Underwriter—None.
April 2 (letter of notification) 2,280,000 shares of com¬
mon
April 8, 1954
.
i
'
Newspaper
-
.
The Tribune gives to the market tables of the
leading stock
exchanges the largest circulation given them in America.
■
!
Number 5314... The Commercial and Financial Chronicle
Volume 179
•
Downs, Inc., East St. Louis, III. (4/9)
$1,400,000 of 10-year 6% first mortgage
bonds due Jan. 1, 1964, and 140,000 shares of common
Cahokia
Feb.
stock
Salomon Bros. & Hutzler (jointly); W. C.
Langley & Co.
Bids—Tentatively expected to be received on May 4.
filed
15
•
Price—Of bonds, at 100% of principal
(par $1).
Underwriter—None.
stock
40,000 shares of
at
stock
par).
Central Mutual Telephone
porate
•
Florida
Gas
System, Inc. (4/21)
$50,000,000 of subordinated convertible
debentures due 1984 to be offered for subscription by
common
stockholders of record April 21 on the basis
it Front Range Uranium Mines, Inc. (4/15)
April 1 (letter of notification) 1,495,000 shares of
Bldg., Denver, Colo. Underwriter—H. J. Cooney & Co.,
(4/27)
New York.
bonds due
1983
construction.
new
(which
were
sold last July)
Underwriter—To
be
Gamma
Corp., Wilmington, Del.
(letter of notification) 140,000 shares of
Feb. 2
and
stock
determined
tal.
Office—100 West 10th Street, Wilmington, Del.
Un¬
derwriter—Sheehan & Co., Boston, Mass.
Gary
Cooperative Grange League Federation
Exchange, Inc.
(Theodore)
March 31
stock
filed
(par 20
holders
(par $5).
Price—To be supplied by amendment. Proceeds—To pro¬
vide financing for Telephone Bond & Share Co. and for
G.
L.
F.
capital.
Price
—
and
the
At par. Proceeds—To retire class B
5% cumulative preferred stock of
Holding Corp., a subsidiary, and for working
Underwriter—None. This offering is a continua¬
if de Vegh
Income Fund,
Inc., New York
March 31 filed 25,000 shares of capital stock.
market.
Proceeds—For investment.
Price—At
trust
bonds due
1984.
Proceeds
—
To
retire
To
,
common
and
common
shares for each
purposes.
10
stock
shares
bank
loans
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Blyth & Co., Inc. (jointly); White, Weld & Co. and
Shields & Co. (jointly); Union Securities Corp.; Lehman
Brothers; Morgan Stanley & Co.; Kuhn, Loeb & Co. and
30
on.
Price—To
28.
be
the
basis
of
one
new
rights to expire on April
amendment. Proceeds—
supplied by
bank loans and for new construction. Under¬
writer—Courts & Co., Atlanta, Ga., for 78,336 shares. The
balance of 64,164 shares are to be purchased by two prin¬
cipal stockholders, Southern Bell Telephone & Telegraph
7 Co. and The Chesapeake & Potomac Telephone Co. of
To repay
Virginia.
'
,
if International Life Insurance Co/
March 31 (letter of notification) 4,166 shares of common
stock (no par). Price—$24 per share. Proceeds—To Chas.
A. McCormick, President and director. Office—International Bldg., Austin, Tex. Underwriter—None.
if Intex Oil Co., Bakersfield, Calif.
March 26 (letter of notification) an unspecified number
of shares of common stock (par 33V3 cents).
Price—At
market.
Proceeds—For account of selling stockholders.
California Ave., Bakersfield, Calif.
Office—531
Under¬
Underwriter—None.
Co., Kansas City, Mo.
(4/13)
18 filed 1,500,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds—
Cities
Service
Co., the parent. Underwriter—To be
by competitive bidding. < Probable bidders:
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Kidder,. Peabody & Co.; Stone & Webster Securities
Corp. and Stern Bros. & Co. (jointly); Union Securities
Corp. Bids—To be received up to 11:30 a.m. (EST) on
General Credit
Corp., Miami, Fla. (4/9)
(letter of notification) 74,990 shares of capital
stock (par$l). Price—$4 per share. Proceeds—For work¬
ing capital. Office—799 N. W. 62nd Street, Miami, Fla.
March 25
Underwriter—Murphy
•
&
Co.,
Miami,
(State of)
$350,000,000 of development bonds to be
types, viz: 15-year 4% dollar coupon
10-year dollar savings (capital appreciation)
bonds. Price—100% of principal amount. Proceeds—For
investment in The State of Israel for agriculture, indus¬
Feb. 24
filed
offered
in
two
bonds and
low cost
housing; and for general reserve. Underwriter
Financial & Development Corp. for Israel,
—American
Statement effective March 10.
New York.
on
held.
determined
•
collateral
and for construction program.
Underwriter—To be de¬
termined by competitive
bidding.
Probable bidders:
new
April 13 at Room 1612, 70 Pine St., New York 5, N. Y.
if Delaware Power & Light Co. (5/4)
6 filed $10,000,000 first mortgage and
April
seven
March
$10).
(par $1).
Proceeds—For investment. Under¬
participating
Gas Service
Cornbeit Insurance Co., Freeport, III.
17 filed 300,000 shares of common stock
Price—$3 per share.
writer—None.
of
basis of
general corporate
tion of earlier offerings of same classes of securities.
March
>
try and power, transportation and communication, and
& Co., Kansas City, Mo.
310,000 shares of participating common
cents) to be offered for subscription by
March 26 filed 7,500 shares of 4% cumulative preferred
stock (par $100) and 500,000 shares of common stock
stock
March
record
of
Israel
common
(par 10 cents).
Price—$1.50 per share. Proceeds—
For inventory, capital expenditures and
working capi¬
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Glore, Forgan & Co.
Bids—Expected to be received up to 10:30 a.m. (CDT)
on April 27 at 72 West Adams
St., Chicago 90, 111.
common
\
writer—None.
April 1 filed $50,000,000 of first mortgage bonds, series '
Q, due May 1, 1984. Proceeds — To redeem $40,000,000
for
to be known as Globe Fire & Casual¬
3145 Southmore Blvd., Houston, Tex.
,
com¬
mon
stock (par one cent). Price—20 cents
per share.
Proceeds—For mining expenses. Office—Interstate Trust
N. Y.
—
share for each four shares held;
'
J
Office
holders
K.
Co., Inc., Atlanta, Ga.; and McCleary & Co.,
Inc., St. Petersburg, Fla.
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
(EST) on April 21 at 120 East 41st St., New York 17,
3%%
Homer
Proceeds—For
(4/12)
March 18 filed 142,500 shares of common stock (par $10)
to be offered first for subscription by common stock¬
A. Evans &
amount.
Proceeds—For construction program. Underwriter — To
be determined by competitive bidding. Probable bidders:
it Commonwealth Edison Co.
Utilities Co.
—
Business—Manu¬
agent.
Inter-Mountain Telephone Co.
(letter of notification) 25,000 shares of com¬
mon
stock (par $3)., Price—At market
(to be supplied
by amendment). Proceeds—For construction
program.
Underwriters—Starkweather & Co., New York; Clement
held; rights to
of principal
Public
Underwriter
bactericidal
a
Underwriter—None.
March 24
filed
Price—$100%
ty Co.
—
and working capital.
Grant, Flagstaff, Ariz.
Price—$5 per share.
sells
and
insurance company
.
Underwriter—None.
penses
rata basis.
if Insurance Investment Corp., Houston, Tex.
April 1 (letter of notification) 500,000 shares of common
stock (par one cent). Price—60 cents per share. Pro¬
ceeds—To finance organization of stock fire and casualty
• Flagstaff Loan Co., Flagstaff, Ariz.
(letter of notification) pre-organization sub¬
scriptions to 1,500 shares of common stock.
Price—At
par ($100 per share).
Proceeds
For organization ex¬
(jointly); Kuhn, Loeb & Co. and
(jointly); Glore, Forgan & Co.; The
First Boston Corp.; Dillon, Read & Co. Inc. Bids—Ten¬
tatively expected to be received on May 4.
pro
porarily withdrawn.
March 31
Co.
May 10.
working capital.
(Del.)
working capital, etc. Office—35-10 Astoria Blvd., Long
Island City 3, N. Y. Underwriter—None. Offering—Tem¬
—
ment and
Heliogen Products, Inc.
factures
Firth-Loach Metals, Inc.,
Pittsburgh, Pa.
March 18 filed 33,400 shares of
capital stock (par $25).
Price—$25 per share. Proceeds
For expansion, equip¬
Co.
of $100 of debentures for each 36 shares
a
Financial Credit Corp., New York
Jan. 29 filed 250,000 shares of
7% cumulative sinking
fund preferred stock. Price—At
par ($2 per share). Pro¬
ceeds—For working capital? Underwriter—E. J. Foun¬
'V
Securities
March 5 (letter of notification) 20,000 shares of common
stock (par $1) to be offered to common stockholders on
Colo.
Co., Inc., New York*—
Jersey City, N. J. Underwriter—
Co., 26 Journal Square, Jersey City.
Exchange Place.
New Jersey.
stock, class E. Price—At par ($25 per
share). Proceeds—To be available to subsidiaries and
reduce outstanding bank loans. Office—820
Plymouth
Bldg., Minneapolis, Minn. Underwriters—M. H. Bishop
& Co.,
Minneapolis, Minn.; and B. I. Barnes, Boulder,
tain &
1
Luster
lative preferred
Halsey, Stuart & Co. Inc., Blyth & Co., Inc., and
on
—15
March
Underwriter—
•
Co.
Proceeds—For construction program. Underwriter
—To- be determined by competitive
bidding. Probable
expire
N. J.
(letter of notification) 297,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Pro¬
ceeds—For expenses incident to acquisition of property
and related activities with respect to oil business. Office
uses.
Fidelity Acceptance Corp., Minneapolis, Minn.
Jan. 26 (letter of
notification) 2,800 shares of 6% cumu¬
1989.
22
Harlan-Franklin Oil Corp., Jersey City,
processing equipment for
commercial
Empire Oil & Refining Co., Inc., Tyler, Texas
9 (letter of
notification) 60,000 shares of com¬
stock (par five cents). Price—At market
(estimated i
at
70 cents per
share).,,,./Proceeds — To underwriter,
Charter Securities
Corp., New York.
^ Cleveland Electric Illuminating Co. (5/4)
March 31 filed $20,000,000 of first mortgage bonds due
Columbia
if Gulf Insurance Co., Dallas, Texas (4/12)
(letter of notification) 5,000 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record April 12 on the basis of one new share
for each 44 shares held.
Price—$55 per share. Proceeds
—For general corporate purposes.
Office — 3015 Cedar
Springs Road, Dallas, Tex. Underwriter—None.
March
ment; of class B shares, $8 per share.
Proceeds—From
stock, together with $500,000 to be received for
sale of 5% debentures, will be used to acquire stock of
H. H. Claussen's Sons, Inc. Underwriter—Johnson, Lane,
Space & Co., Inc., Savannah, Ga.
March
—
mon
sale of
&
Proceeds
March 29
Blyth & Co., Inc., San Francisco, Calif.
Inc., Augusta Ga. (4/20)
162,500 shares of class A common stock
(par $1) and 62,500 shares of class B common stock (par
$1). Price—Of class A shares, to be supplied by amend¬
&
400 shares of class A
400 shares of class B copiFor construction of building,
equipment and general expenses.
Office — 3888 N. W.
First St., Miami, Fla.
Underwriter—None.
common stock (par
$1),
being offered for subscrip¬
stockholders of Consolidated Engineer¬
and specialized electronic data
Fla.
(letter of notification)
stock (par $100) and
stock.
mon
Corp., Pasadena, Calif.
scientific, industrial and
filed
Weld
Newark
one share for each two Consolidated
shares held April
5; rights to expire April 29. Price —
$3.50 per share. Proceeds—To repay advances from Con¬
solidated and for
working capital, etc. Business—To de¬
sign, develop, manufacture and sell or lease standard
if Claussen Bakeries,
Wertheim
ElectroData
by common
ing Corp. at rate of
$4,431,250 participations in the Employees
participating subsidiary
companies, and 50,000 shares of common stock (par $10)
to be purchasable under the plan.
White,
St.,
Underwriter—None.
tion
March 9 filed
bidders:
McWhorter
common
Miami,
Corp.,
Exhibition
if Gulf
March 29
March 15 filed 450,000 shares of
of which 435,000 shares are
Thrift Plan of this company and
1
Office—248
purposes.
5, N. J.
Light Co. (4/12)
March 18 filed $18,000,000 of first mortgage bonds, series
F, due April 1, 1984. Proceeds—To redeem $8,000,000
series E 4Vs% bonds due May 1, 1983, and for additions,
extensions and improvements. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp., East¬
man, Dillon & Co., Goldman, Sachs & Co. and White,
Weld & Co. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and Salomon Bros. & Hutzler (jointly); Lehman
Brothers; Union Securities Corp. and Kidder, Peabody
& Co. (jointly).
Bids—To be received up to noon (EST)qon April 12 at 20 No. Wacker
Drive, Chicago 6, 111.
April
com¬
stock (par 10 cents) to be offered to
stockholders.
Price—25 cents per share.
Proceeds—For general cor¬
Power &
Service
if Guardian Loan Co., Inc.
March 30
(letter of notification) 2,500 shares of 6%
cumulative preferred stock. Price—At par
($100 per
share). Proceeds — For expansion. Office — 162 Remsen
St., Brooklyn 2, N. Y. Underwriter—None.
mon
Manassas, Va.
(letter of notification) 20,000 shares of capital
stock (par $10), of which 4,000 shares are to be offered
to shareholders at par and 16,000 shares to public at $12
per share.
Proceeds—For improvements and additions
to plant. Underwriter—Folger, Nolan-W. B. Hibbs & Co.,
Inc., Washington, D. C.
Cities
York.
common
Duggan's Distillers Products Corp.
19 (letter of
notification)' 200,000 shares of
March 22
Central
struction. Underwriter—Paine, Webber, Jackson & Cur¬
tis and Stone & Webster Securities Corp., both of New
Feb.
Co., Inc.,
Proceeds—To repay bank loans and for new con¬
ment.
Price—$14.50 per share.
Proceeds—To
Ducommun.
Underwriter—Hill Richards &
E.
Telephone Co. of Indiana, Inc. (4/28)
30,000 shares of $2.50 cumulative pre¬
Price—To be supplied by amend¬
filed
30
ferred stock (no par).
Co., Los Angeles, Calif.
$1).
(par
around
General
March
(par $2).
Charles
corn-
Price — At market (estimated
Proceeds — To, three selling stock¬
holders.
Underwriter—Auchincloss, Parker & Redpath,
New York.
No general public offer planned.
mom
; General Stores Corp., New York
(par $1).
Price—$1,371/2 per share. Proceeds—To pay part of cost
of acquisition of Ford Hopkins Co., Chicago, 111. Under¬
writer—A. C. Allyn & Co., Inc., Chicago, 111.
Underwriter—McLaughlin, Reuss & Co.,
• Ducommun Metals & Supply Co.,
Los Angeles, Calif.
March 26 (letter of
notification) 6,678 shares of
Underwrite*1—Kidder, Peabody &
March 8 filed 300,000 shares of common stock
New York.
Carr-Consolidated Biscuit Co.
(letter of notification)
Canada.
peg,
casting Association, Inc., a subsidiary, and for redemp¬
15
(4/13)
the Stony Plain India Reserve and in
participation of
the development of the Buck Lake Area. Office—Winni¬
Capper Publications, Inc., Topeka, Kansas
of series six 5-year first mort¬
gage 4% bonds and $2,000,000 of series seven 10-year
first mortgage bonds.
Price — At 100% of principal
amount.
Proceeds—To advance sums to Topeka Broad¬
73
Co., New York.
10-year 5% convertible sihking fund leasehold mortgage bonds due May 1, 1964.
Price—100% of principal amount. Proceeds—To redeem
outstanding bonds, repay bank loan and for general
corporate purposes, including drilling commitments in
March 23 filed $2,000,000
March
Devon-Leduc Oils Ltd.
selling stockholders.
March 10 filed $2,000,000
and of stock, $1.50 per share.
Proceeds—For
construction
and
operation of racing plant.
Under¬
writer—Dixon Bretscher Noonan Inc., Springfield, 111.;
Hunter Securities Corp., New York.
amount;
tion of certain bonds.
(1603)
Fla.
^Istel Fund, Inc., N. Y.
April 2 filed 151,770 shares of common stock.
market.
Price—At
Proceeds—For investment.
if l-T-E Circuit Breaker Co. (4/27)
April 5 filed 100,000 shares of preferred stock (par $50).
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans. Underwriters—Smith, Barney &
Co., New York, and
C. C. .Collings & Co., Inc., Phila¬
'
delphia, Pa.
'
Machine Co.
March 16 (letter of notification) 100,000 shares of com¬
mon
stock (par $1).
Price—$2 per share. Proceeds—
Johnston Adding
For
tooling and dies. Office—402 N. Carson St., Carson
Underwriter—None.
City, Nev.
Kress
(S. H.)
& Co., New York
March 29 filed 40,000
for
issuance
under
shares of common stock (no par)
stock purchase plan
the company's
for selected employees.
Kropp Forge Co., Cicero, III.
11 (letter of notification) 40,425 shares of com¬
stock (par 33y3 cents). Price—At market (estimated
March
General
Gas
Corp., Baton Rouge, La. (4/13)
March 19 filed 100,000 shares of common stock (par $5).
Price
To be supplied by amendment. Proceeds — To
—
mon
Continued
on
page
76
76
The Commercial and Financial Chronicle... Thursday, April
(1604)
Continued
Co.
from page 75
share) and will not exceed an aggregate of
Proceeds—To Estate of Emma C. Kropp. Un¬
Sherman & Co., New York, and Sin¬
at $2.75 per
$150,000.
derwriters—L. D.
111.
& Co., Chicago,
cere
Light Metals Refining Corp., New York (4/15)
Feb. 15 filed 1,250,000 shares of common stock (par $1).
Price
$4 per share.
Proceeds — For construction and
equipment of control plant, and main plant, working
capital, advance royalties and reserves.
Business — To
Tefine beryllium ore and market the products.
Under¬
writer—Philip Gordon & Co., Inc., New York, f/,
—
$100,000 of 4% bonds;
(letter of notification)
shares of class B common stock (par $10) and
.2,500 shares of class C common stock (par 10 cents1) to
Ue offered in units of one $1,000 bonds and 25 shares of
-each class of stock. Price—$1,000 per unit. Proceeds—
2,500
working capital. Office—48-08 Van Dam. St., Long
City 1, N. Y. Underwriter—None.
Island
Long Island Lighting Co. (4/13)
a"'
'
March 29 filed 200,000 shares of cumulative preferred
..
amendment.
Price
(par $100).
stock, series E
—
Corp., all of New York.
$178,000 of 15-year 5% sinking fund de¬
bentures, due Oct. 1, 1966, and 50,000 shares of capital
-stock (no par), the latter to be first offered for sub¬
28 filed
scription by stockholders. Price—For debentures, at par;
$10 per share. Proceeds—To finance ex¬
panded merchandise inventory and operating equip¬
ment (new building), and for working capital. Under¬
•and for stock,
writer—None.
Feb.
Co., New York
(letter of notification)
26
March
Basket,
filed
15
1,469
Los Angeles, Calif.
28,830 shares of common stock
(par 50
to be offered for subscription by stockholders of
cents)
Tecord
about
expire
April 1, on a one-for-ten basis; rights to
April 16. Price—To be supplied by amend¬
on
ment. Proceeds—For
improvements and working capital.
Underwriters—Bateman, Eichler & Co., The First Cali¬
fornia Co.,
Inc., and William R. Staats & Co., all of Los
Angeles, Calif.
Mathieson Chemical Corp.
March 26 filed 350,000 shares of common stock (par $5)
to be offered under the company's restricted stock option
plan to certain officers and other key employees of the
company and its subsidiaries.
Medina
Dec.
9
stock.
Oil
Price—At
2,800 shares of
common
($100 per share).
Proceeds—To
purchase drill rig, etc. Office — 10 East Corydon St.,
Bradford, Pa.
Underwriter — Winner & Myers, Lock
par
Haven, Pa.
Mediterranean Petroleum Corp., Inc.,
March
filed
30
American
^900,000 shares of
—To
be
supplied
filed
257,338 shares of
voting
trust
certificates
for
common stock (par one cent). Price
by. amendment.
Proceeds—For ex¬
May 12.
Northern States Power Co.
(par $1).
stock
common
$5)
be
shares held
Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
(106,480).
(150,458); and The Lehman
No general offer
Underwriter—None.
planned.
ir Moreno
March 31
Uranium Corp.,
Denver, Colo.
(letter of notification)
750,000 shares of com¬
cents) to be offered first to stockhold¬
ers.
Price—To stockholders, 20 cents per share, and to
public, 25 cents per share.
Proceeds—»For drilling, sur¬
veys,
acquisition of properties and working capital.
Office—731 Cooper Bldg., Denver, Colo.
Underwriter
mon
stock (par 10
—None.
'
Mountain States Telephone & Telegraph Co.
5 filed 487,248 shares of capital stock being of¬
on the basis of
share for each four shares held;
April 30.
About 86.66%
rights to expire
of the presently outstanding
stock is owned by American Telephone & Telegraph Co.
Price—At par ($100 per share).
Proceeds—To repay
advances from parent company and for new construction.
Underwriter—None.
Industries, Inc., Natick, Mass.
(letter of notification) 58,800 shares of com¬
mon stock (par
$1). Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.
10
March
9
(4/12)
filed
$15,000,000 sinking fund debentures due
To purchase certain shares of sub¬
sidiaries, who will use the proceeds to repay bank loans
1979.
Proceeds
—
ment.
,
Meteor Air
.March
A
17
stock
by amend¬
(letter of notification)
$1).
Price—$1.50
(par
To
be
received
up to
11 a.m.
St., New York, N. Y.
2 Rector
(EST)
April
on
199,800 shares of class
share. Proceeds—
For working capital and purchase of aircraft.
Business
—A contract
air
carrier.
Office—Teterboro Air Term¬
inal, Teterboro, N. J.
Underwriter
Xibaire, Stout & Co., New York.
Mission
to
Eisele
&
King,
be offered
first
common
stock
stockholders
to
and
to
gen¬
eral public. Price—$2 per share. Proceeds—To increase
capital and surplus. Underwriter—None.
Mississippi Chemical Corp., Yazoo City, Miss.
-Jan. 5 filed 26.666 shares of special common stock
(par
dividend) and $1,500,000 of certificates of
participation (to be sold in multiples of $75—5% inter¬
est).
Proceeds—From
with bank
facilities.
company
sale
of
these
securities, together
borrowings, are to be used for expansion of
Underwriter—None. Sales will be handled
by
employees.
-
(5/4)
Peabody & Co., Smith, Barney & Co., Blyth & Co., Inc.
and Lee Higginson
Corp. (jointly); Union Securities
Corp. Bids — Expected to be received up to 11 a.m.
<EDT) on May 4.
*
it. "i
.
Montana Power Co.
March
31
(5/4)
filed
60,0,00 shares of cumulative preferred
Proceeds — For construction program.
Underwriter—May be determined by competitive bidjiingiprobable bidders: White, Weld & Co.; Lehman
■stock,, (no par).
Brothers;
Union
Securities
Corp.; Kidder, Peabody
&
determined
be
Lehman
(jointly); Smith, Barney & Co.
Bids—Tentatively expected to be received up to 10:30
a.m. (CST) on April 20.
1
bidding.
competitive
Probable
bidders:
Brothers and Riter & Co.
Ohio
Power
Co.
(4/14)
March 12 filed
$20,000,000 of first mortgage bonds due
1984. Proceeds—To repay bank loans and for new con¬
struction.
Underwriters
To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
Kuhn, Loeb & Co., A. C. Allyn & Co., Inc. and Coffin
& Burr, Inc. (jointly); Union Securities Corp. and Salo¬
mon Bros. & Hutzler
(jointly); Harriman Ripley & Co.
Inc. and Stone & Webster Securities Corp,
(jointly).
Bids—To be received up to 11 a.m. (EST) on April 14
at 30 Church St., New York, N. Y.
)
< ■
Ohio
12
at
stock
Power
for
12
Co.
(4/14)
filed
50,000 shares of cumulative preferred
(par $100). Proceeds—To repay bank loans and
Underwriters—To
construction.
new
Price—
Stone
shares
Corp.; Harriman Ripley & Co., Inc. and
Securities Corp. (jointly). Bids—To
to 11 a.m. (EST) on April 14 at 30 Church
be received up
Insurance
Co.
the
on
basis
of
one
new
share
for
each
two
April 19.
Price—$30 per
Proceeds—To be added initially to the
company's
funds
qualified
Boston
as
be
to
on
invested
in
legal investments.
Pan-Israel Oil Co., Inc. of Republic of Panama
securities
which
are
Corp., New York.
Stock
Exchange, with
20% underwriting
commission. Proceeds—For general corporate purposes.
Underwriter—To be named by amendment.
a
England Gas & Electric Association
being offered in exchange for common stock
Bedford Gas & Edison Light Co. held by minor¬
on
the basis of 4% New England shares
for each New Bedford share held. The offer will
expire
on
April 24.
Financial Advisor—The First Boston Corp.,
New York.
ir New Jersey Bell Telephone Co.
April 7 filed $25,000,000 of 35-year debentures due May
Proceeds—To
1989.
struction
&
repay
Telegraph
Co.,
advances from
the
parent,
American
and
for
con¬
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co., Inc.; Kuhn, Loeb &
Co.;(Morgan Stanley & Co.;
Shields & Co.; White, Weld & Co.; The First Boston
Corp. Bids—Tentatively expected to be received up to
program.
(EDT)
a.m.
on
ir New Mexico Copper Corp., Carrizozo, N. M.
April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬
ceeds—For
mining expenses. Office—Carrizozo, N. M.,
and 1211 E. Capital St., Washington, D. C. Underwriter
—•Mitchell Securities, Inc., Baltimore, Md.
Yorker Magazine,
Inc.
(letter of notification) 2,400 shares of common
stock (par $1). Price—$20.25 per share. Proceeds—To a
selling stockholder. Underwriter — Silherberg & Co.,
23
'
.
of
10%
preferred stock.
Price — At par ($100 per
Proceeds—For working capital.. Office—215 E.
Colorado Springs, Colo. Underwriter—None.
(4/19).
March
cents).
'
,
Uranium & Oil
Corp., N. Y.
(par
Price
cent).
one
—
com¬
15 cents per share.
Proceeds—For mining expenses. Office—608 Rood Ave.,
Grand Junction, Colo. Underwriter—Tellier & Co., Jer¬
sey
City, N. J.
ir Peninsular Telephone Co., Tampa, Fla. (4/20)
April 1 filed 131,836 shares of common stock (no par)
to be offered for subscription by stockholders of record
April 20 at the rate of one new share for each five shares
then
held
certain
(with
officers
unsubscribed
and
shares
employees);
being offered
to
rights
to expire on
Price—To be supplied by amendment.
Proceeds
May 5.
For construction program.-
Underwriter—Morgan, Stan-*
ley & Co. and Coggeshall & Hicks, both of New York.
Pennsylvania Gas Co.
Feb.
25
(letter of notification) 17,526 shares of .jcapital
(no par) being offered for subscription by minor¬
ity stockholders of record March 19 on basis of one new
stock
share
each 12V2 shares held; rights to expire on
National Fuel Gas Co., majority stockholder,
will subscribe for an additional 28,554 shares.
Price—;
$15 per share. Proceeds—For acquisition and working
for
April 26.
capital.
Office—Warren, Pa.
Underwriter—None.
Pennsylvania Power & Light Co.
March 12 filed 704,917 shares of common stock (no
par)
being offered for subscription by common stockholders
of record April 2 at the rate of one new share for each
seven shares held; rights to expire on
April 19. Price—
$39.75
for
per
new
share.
Proceeds—To
construction.
repay
bank
Underwriters—The
loans
First
and
Boston
Corp., New York, and Drexel & Co., Philadelphia, Pa.
People's Finance Corp., Denver, Colo.
March 23 filed $300,000 of 6% 15-year convertible sub¬
ordinated debentures. Price—100% of principal amount.1
general
outstanding
standing securities.
Co., Chicago, 111.
corporate purposes,
bank
loans
Underwriter
or
—
probably to
repurchase of: out-,
Paul C.
People's Finance Corp., Denver, Colo.
Kimball &
■-■
•"
March 23 filed 2,904 shares of 6% cumulative preferred
Price—At par ($50 per-share).
Proceeds"— For
stock.
general corporate purposes.
:
Underwriter—None.
Com¬
is also seeking registration of $164,000 of deben¬
tures, notes and preferred and common stock heretoforepany
1'filed
750,000 shares of common stock (par 10
Price—$2 per share. Proceeds—For capital ex¬
penditures, including
stock
mon
reduce
cumulative
North American
Paradox Uranium Mining Corp.
March 22 (letter of notification) 2,000.000 shares of
Proceeds—For
ir Newcomer (Joe) Finance Co., Colorado Springs, Colo.
March 29 (letter of notification) 897% shares
share).'
stock (par one cent). Price—
supplied by amendment. Proceeds—For explora¬
tory drilling and development, and for operations and
expenses.
Underwriter—To be named by amendment. y
•
May 5.
New York.
voting trust certificates for 1,-
common
To be
Underwriter—The First
New Bristol Oils, Ltd.,
Toronto, Ont., Canada
Dec. 18 filed 1,000,000 shares of common stock
(par $1).
Price—To be related to the bid price of the shares on
New
determined
St., New York, N. Y.
Fire
held; rights to expire
general
be
Webster
&
000,000 shares of
19
Platte Ave.,
,
preferred
bank loans and
repay
Underwriter—To
construction.
new
by
March
Feb.
"be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kidder,
for
(4/20)
(Minn.)
Proceeds—To
(par $100).
March 30 filed American
New
Montana Power Co.
March 31 filed $6,000,000 first
mortgage bonds due 1984.
Proceeds—For construction program.
Underwriter—To
10
150,000 shares of cumulative
Feb. 26 filed 200,000 shares of capital'stock (par $5) be¬
ing offered for subscription by stockholders of record
11
$75—limited
Power Co.
States
filed
16
Union
National
Telephone
(par 65
Northern
March
Proceeds—For investment.
At market.
1,
Indemnity Co., Pasadena, Calif.
March 29 filed 600,000 shares of
cents)
—
each
The First Boston
^National Investors Corp., New YorkMarch 31 filed 600,000 shares of capital stock.
ity stockholders
per
for
share
new
an
by competitive bidding. Probable bidders: Lehman Bro¬
thers; Kuhn, Loeb & Co., A. C. Allyn & Co. Inc., and
Coffin & Burr, Inc. (jointly); Blyth & Co., Inc.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
of New
"
Transport, Inc.
one
Corp.; Kuhn, Loeb & Co. and Wertheim & Co. (jointly);
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
(par $8)
named
of
March
Dec. 10 filed 32,126 common shares of beneficial interest
be
basis
April 15 (with
on
incurred for construction.
Underwriters—For any dedentures to be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bostori
and
Underwriter—To
the
on
—
Natick
March
ploratory drilling and development, and for operations
expenses.
1,219,856 shares of common stock (par
offered for subscription by common stock¬
oversubscription privi¬
lege); rights to expire on May 4. Price—To be supplied
by amendment.
Proceeds—To repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding.
Probable bidders: Lehman
Brothers and Riter & Co. (jointly); The First Boston
Corp., Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Smith, Barney & Co.; While, Weld & Co. and Glore,
Forgan & Co. (jointly), Bids—To be received up to 10:30
a.m. (CST) on April 14 at 231 La Salle St., Chicago 4, 111.
stock
March
new
to
holders
(4/14)
(Minn.)
filed
■
fered to stockholders of record March 26
one
Boston, Mass.
(letter of notification) $80,000 of 5% notes due
1, 1974, and 2,000 shares of common stock (par
$10) to be sold in units of $400 principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties, land, construc¬
tion of theater and related expenses.
Office—60 State
Underwriter—H. C. Wainwright &
St., Boston, Mass.
Co., Boston, Mass.
secondary distributions.
of their immediate families
Underwriter—Israel & Co.,
properties.
3
16
the Toronto
Republic of Panama
on
and
Feb.
March
share.
Corp., Orlean, N. Y.
(letter of notification)
2
National Fuel Gas Co.
shares of com¬
mon stock (par $1).
Price—At market (around $24 per
•;hare). Proceeds — To George P. Brett, Jr., President.
Underwriter—Hemphill, Noyes & Co., New York.
Market
(EDT)
Feb.
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or
Macmillan
March
York.
Monterey Oil Co., Los Angeles, Calif.
on
Los Angeles Drug Co.
claims
North Shore Music Theater, Inc.,
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers; Kidder, Peabody
& Co., Smith, Barney & Co., Blyth & Co., Inc. and Union
Securities Corp. (jointly).
Bids—Expected to be re¬
ceived up to 11 a.m.
tain
New
(5/12)
filed $18,000,000 of debentures due 1979. Pro¬
a like amount of 4%% debentures due
ceeds—To refund
To be supplied by
Proceeds—To redeem $20,000,000 of 5.25%
preferred stocks now outstanding. Underwriters—W. C.
JLangley & Co., Blyth & Co., Inc., and The First Boston
IM.
* Montana Power Co.
March 31
Corp.
(N. Y.)
Jr Liquid Plastics Corp.
For
Blyth & Co., Inc. (jointly). Bids—Expected to
up to 11 a.m. (EDT) on May 4.
1978.
^ Life Insurance Co. of Alabama, Gadsden, Ala.
April 1 (letter of notification) 15,000 shares of common
_stock (par $5).
Price —$20 per share.
Proceeds — For
working caoital and surplus. Office—American National
-Bank Bldg., Gadsden, Ala.
Underwriter—None.
March 29
and
be received
8,1954
payment
of balance due
on
cer¬
sold and
holders thereof
rescind their purchases.
are
to
be offered
the
right to
Number 5314... The Commercial and Financial Chronicle
Volume 179
(1605)
'
\
..........
Precision
Diamond
Tool
to
Co.
if Southern Counties Cas Co. of California
April 5 filed $15,000,000 first mortgage bonds, series
A,
due 1984.
Proceeds—To repay advances received from
parent, Pacific Lighting Corp., and for new construc¬
tion. Underwriter
To be determined by
competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Merrill Lynch, Pierce, Fenner & Beane and
Dean Witter
March'30 (letter of notification) 75 shares of 6% cumu¬
lative preferred stock (par $500) and 140 shares of com¬
mon stock {no par).
Price—For preferred, at par, and
for common, $85 per share.
Proceeds — To retire bank
loans and for working capital.
Underwriter—None.
—
Public Service Co. of New Mexico
•
17 filed
March
138,656 shares of
common
&
Co. (jointly); Blyth &
Corp.;. White, Weld & Co.
stock
(par $5)
stockholders
being offered for subscription by common
of record April 1 at the rate of one new share for each
10 shares held; rights to expire on April 27. Price—$11.25
share. Proceeds—For construction
writer—Allen & Co., New York.
per
Idaho Falls, Idaho
^ Pumice, Inc.,
March
29
March 5 filed
Under¬
program.
1,
Underwriter
Falls, Idaho.
—
1984.
Yellowstone, Idaho
Coombs & Co., Salt Lake
if Puritan Bottling Co., Inc.
(letter of notification) 100,000 shares of com¬
stock (par $1). Price—$1.50 per share. Proceeds—
For equipment, expansion and working capital. Office—
615 Adams St., Hoboken, N. J. Underwriter—None.
(EST)
a.m.
,
working
March
15
Airlines, Inc., Miami, Fla.
(letter of notification) 1,087,030 shares of
stock (par 10 cents), being offered for
subscrip¬
stock of
value
Proceeds—For
working capital. Address — Box
Airport, Miami, Fla. Underwriter—
of
the
•
Safeway Stores, Inc., Oakland, Calif.
17 filed 267,000 shares of 4.30% cumulative con¬
vertible preferred stock
(par $100) being offered for
subscription by common stockholders at rate of one
preferred share fpr each 13 shares of common stock held
for
March
of
•
per
Proceeds—To repay bank loans and for working
Underwrite*.—Merrill Lynch, Pierce, Fenner &
Beane, New York.
employees.
Office
poses.
301
—
Avenue
Fort
Madison,
&
participating
preferred
stock
held
by
the
below
named
underwriters
and
rSimon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y.; and Chace, Whiteside, West &
Winslow, Inc., Boston, Mass. Change in Name—Company
•was
formerly known
as
Federal Loan Co. of Pittsfield,
Signature Loan Co., Inc.
March
;stock
5
filed
29,458
shares
of
convertible
preferred
(par $11)
estock
(par $1)
and 29,458 shares of class A common
being offered to holders of participating
preferred stock
on
in units of
the basis of
ferred share held
as
one
share
of
each
class
of
unit for each participating pre¬
of record March 25 (with an over¬
one
subscription privilege); rights will expire on April 30.
JPrice—$15 per unit to stockholders and $15.50 per unit to
^public.
Proceeds — For expansion and working cap¬
ital.
Underwriters
—Simon, Strauss & Himme and A.
M. Kidder & Co., both of New
York; William N. Pope,
Tnc., Syracuse, N. Y.; Chace, Whiteside, West & Winslow,
/Inc. and Draper, Sears & Co., both of Boston, Mass.;
--^nd Chilson, Newbery & Co., Kingston, N. Y.
-A-Silicate Reduction Corp., Denver, Colo.
March 31 (letter of notification) 175,050 shares of com¬
mon stock, of which 150,000 shares are to be offered to
public and 25,050 shares issued to promoters for services.
Price—At par ($1 per share). Proceeds—To repay notes,
;purchase equipment and for other corporate purposes.
•Office—3064
S.
Elm
St., Denver, Colo.
Underwriter—
iPIone.
Somerset Telephone Co.
•
".Feb. 25
-.stock.
Maine.
JT.
.
(4/9)
be
new
share for each two shares held.
supplied
by
amendment.
Price
Proceeds—For
fi¬
Underwriters—May
.(to handle books); White, Weld
Co.; and W. C. Pitfield & Co., Inc.
Temco Aircraft Corp.
—
three
dial
exchanges.
Office—Norridgewock,
Underwriters—E. H. Stanley & Co. and Clifford
Murphy Co.,
of Waterville,
Maine.
Bros.
&
to be received
Underwriter
—
Texas Southern Oil
Van Alstyne,
Gas
Co.,
March 15 (letter of notification) 200,000 shares of com¬
mon stock (par 25 cents).
Price—$1.50 per share, Proceeds—For payment to Warlit Oil Corp, and for work¬
ing capital.
Office — Wilson Tower Building, Corpus
Christi, Texas.
Underwriter — Barrett Herrick & Co.,
Inc., New York.
Texas
Utilities
Co.
(4/13)
March 15 filed 250,000 shares of common stock (no
par).
Proceeds—For investment in subsidiaries. Underwriters
—To
be
determined by competitive bidding. Probable
Kidder, Peabody & Co., Merrill Lynch, Pierce,
bidders:
Fenner
&
Beane
and
Lehman Brothers and
Union Securities Corp. (jointly);
Bear, Stearns & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc. (jointly). Bids
-r-to be received up to 11 a.m. (EST) on April
13, at
Two Rector St., New York, N. Y.
if Texas Western Oil Co., Inc., Houston, Texas
(letter of notification) 300,000 shares of com¬
mon
stock to be offered in exchange for oil, gas and
mineral leases valued at $30,000.
Underwriter—None.
•
Textron
Incorporated, Providence, R. I.
(par $100) and 489,171 shares of
50 cents)
of
common stock (par
to be offered to holders of the 978,342 shares
common
stock of American Woolen Co.
one-fifth of
common
a
on
the basis of
and one-half share of
stock plus $5 in cash for each American Woolen
share up to and including April 19. From April
May 20, the cash consideration will be $3.50; from
May 21 to June 21, $2; and for June 22 to July 20, no
cash. Dealer-Manager—Blair, Rollins & Co.
Inc., New
common
20 to
York.
if Town & Country Gas Co., Inc., Richmond, Va.
March 30 (letter of notification) 3,000 shares of class A
common stock
(par $1).
Price—$37.50 per share.
Pro¬
ceeds—For equipment and new construction and to re¬
Office—McQuire Circle, Richmond, Va.
Underwriter—None.
Trip-Charge, Inc., Pittsburgh, Pa.
March
17 (letter of notification).
22,428 shares of 7%
preferred stock (par $10) and 7,476 shares of common
stock (par $1) to be offered in units of three
preferred
and
one
common
share.
Price—$33
per
unit.
Proceeds—For expansion and working capital.
Business
—Credit cards.
Office—Fifth and Hamilton, Pittsburgh
6, Pa.
have
Underwriter—None.
preemptive
right
to
Room
of
50,000
•
Vulcanized Rubber & Plastics Co.
23 (letter of
notification) 3,540 shares of com¬
mon stock
(no par) offered on April 5 to stockholders of
March
30
on
a
basis
two shares of preferred
of
one
or common
share for each,
new
stock
held; rights toexpire on April 19. Price—$25 per share.
Proceeds—Ta
purchase two injection molding presses and for
working:
capital. Office—261 Fifth Ave., New York
16, N* Y„
Underwriter—None.
I
.
West Coast Pipe Line
Co., Dallas, Tex.
Nov. 20, 1952 filed
$29,000,000 12-year 6% debentures
due Dec. 15, 1964, and
580,000 shares of common stadrfc
(par 50 cents) to be offered in units of
ture and
one
share of stock.
one $50 deben¬
Price—To be supplied by
amendment. Proceeds—From sale of units and
1,125,000*
additional shares of common stock and
private sales of.
$55,000,000 first mortgage bonds to be
1,030
mile
&
crude
Co.
and
oil
pipeline.
Union
used
to
Underwriters
Securities
build
—
a.
White,
Corp., both of New
Offering—Postponed indefinitely.
West Coast Pipe Line
Co.,
Dallas, Tex.
Pre-,
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union.
Securities
Corp.', both of New
indefinitely.
poned
West Penn Power Co.
York.
Offering—Post¬
■";
>
(4/20)
March
25 filed
$12,000,000 first mortgage bonds, series
P, due April 1, 1984. Proceeds—For construction pro¬
gram of company and its subsidiaries.
Underwriters—To be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
body &
Inc.; The First Boston Corp.;
Brothers; W. C. Langley & Co.; Kidder, Pea¬
and White, Weld & Co.
(jointly); Kuhn,
Co.; Harriman Ripley & Co. Inc. Bids
Tenta¬
Co.
—
West Texas
up to
11
a.m.
(EST)
on
April 20.
Utilities Co.
(4/8)
*•
60,000 shares of cumulative preferred,
(par $100), of which 47,370 shares are to be first
offered in exchange for
outstanding $6 cumulative pre*
ferred stock on a share-for-share basis. The
exchanger
March
15
filed
stock
I offer
will
expire
on
April
19.
Proceeds—To
redeem $<>
preferred stock and to finance new construction. Under¬
writers—To be determined by
competitive bidding. Prob¬
able bidders: The First Boston
Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Co., Inc.; Harriman
Ripley & Co. Inc.; Union Securities Corp.; Lehman
Brothers; Stone & Webster Securities Corp, Bids—To
received up to 11:30 a.m.
(CST) on April 8 at 20 North
Wacker Drive, Chicago, 111.
m
Westinghouse Electric Corp., Pittsburgh, Pa.
March 2 filed 483,190 shares of common stock
(par
$12.50) to be offered under restricted stock option plan
to certain officers and other executive
employees of
company and its subsidiaries; and 200,000 shares of said,
stock to be offered under
employees' stock plah to em¬
ployees of company and six subsidiaries.
if Whitehall Fund, Inc., New York
filed 100,000 shares of capital stock.
March 31
market.
Price—
Proceeds—For investment.
Wilson
Organic Chemicals, Inc.
(letter of notification) 7,500 shares of common,
(par $1).
Price—$2.37% per share.
Proceeds—
To selling stockholder.
Office
Sayreville, N. J. Un¬
derwriter—Graham, Ross & Co., Inc., New York.
March 18
stock
—
share of preferred
duce liabilities.
in
March
At
Feb. 8 filed 195,668.4 shares of 4% preferred
stock, series
B
con¬
com¬
expected
if Vokar Corp., Dexter, Mich.
March 30 (letter of
notification) a maximum
shares of common stock.
Underwriter—None.
•
&
Bids—Tentatively
to noon (EDT) on April 28
2033, Two Rector St., New York, N. Y.
Lehman
(4/20-21)
selling stockholders.
Co., New York.
Hutzler.
up
tively expected
shares
(letter of notification) 5,600 shares of preferred
At par ($5 per share).
Proceeds — To
Price
••establish
•
one
by
Nov. 20, 1952 filed
1,125,000 shares of common stock (par*
50 cents).
Price—To be supplied by amendment.
March 30
Tnc.
stock
Super Valu Stores, Inc., Hopkins, Minn.
Co., below.
new
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co.
and Stone & Webster Se¬
curities Corp.
(jointly); Union Securities Corp. and.
Smith, Barney & Co (jointly); Lehman Brothers
and
Bear, Stearns & Co. (jointly); The First Boston
Corp.
and Blyth &
Co., Inc. (jointly); Kidder, Peabody &
Co.;
Salomon
York.
re-
offered to public. Price—$11.50 per share. Proceeds—To
.retire
participating preferred stock. Underwriters —
Proceeds—To repay bank loans and for
Underwriters—To be determined
Weld
at
The offer expires on April 30. Subject to
prior right of
•exchange, 47,806 shares of the new preferred are to be
Light Co. (4/28)
$15,000,000 of first mortgage bonds due
petitive
company. Offer expires Oct. 31.
Underwriter—
Office—Salt Lake City, Utah. Statement effective
the
,
struction.
stock
common
;
'
Utah Power &
Feb. 16 filed
Loeb &
•close of business March 25
purchased
shares of $10 par
Noel &
.
outstanding
the plan,
three
Iowa.
on basis of two new shares of
7% stock for each old participating preferred share held.
subsidiaries, United Gas Pipe Line Co/.and Union Prdducing Co.] add
oh«rC5 9l cPIHlBPn stock gt
United Gas Corp. which
may be purchased pursuant to
March 30 filed 300,000 shares of common stock (par $1).
Price — To be supplied by amendment. Proceeds — To
Underwriter—None.
;for
of the 25,000
be Lazard Freres & Co.
num-
Signature Loan Co., Inc.
March 5 filed 58,916 shares of 7% cumulative convert¬
ible preferred stock (par $11)
being offered in exchange
cumulative
nancing of company's subsidiaries.
(par $1) to be offered
Price—At market (based
H,
(a)
Corporation stock for each of the 5,000
preferred stock (par $10) of
and (b) 23 shares of Corporation stock
5%
Company
each
—To
closing price on New York Stock Exchange on date
purchase).
Proceeds — For general corporate pur¬
rot
of
basis of
•
:for subscription by
the basis
on
•
Telephone Bond & Share Co., Wilmington, Del.
March 31 filed 325,000 shares of common stock
(par $1)
to be offered for subscription by stockholders on the
—
stock
Strevell-Paterson Finance Co.
See Winston & Newell
if Service Loan Co. of Delaware
March 29 (letter of notification) $90,000 of subordinated
6% debenture notes, due Oct. 1, 1962, and $40,000 of sub¬
ordinated 7% debenture notes due Oct. 1, 1968.
Price—
At par.
Proceeds—For working capital and redemption
<of certain notes.
Office
11410 East Jefferson Ave.,
Detroit, Mich. Underwriter—None.
common
stock
March 30.
capital.
shares of
(4/14-15)
common
shares of
None.
share.
«on
13
shares
n>
of
of
stock (par 50
being offered in exchange for the $300,000 par
of
authorized, issued and outstanding capital
share.
iber
shares
Strevell-Paterson Finance Corp.
Feb. 19 filed 640,000 shares of common
cents
March 29
record
Corp., Moab, Utah
1,430,000
•
by stockholders of record March 15 on a l-for-2
basis; rights to expire April 16. Price — 25 cents per
-if Sheaffer (W. A.) Pen Co., Madison, Iowa
March 30 (letter of notification) an undetermined
filed
(par
cent). Price—$1.25 per share. Proceeds—To exercise
options on claims, and for general corporate purposes.
Underwriters—Gearhart & Otis, Inc., New York, and
Crerie & Co., Houston, Tex.
17
April 5; rights to expire April 21. Price—$100.35
Underwriter—None.
one
tion
on
capital.
Standard Uranium
Resort
International
on
ern
Washington and Northern Idaho. Price—100% of
principal amount. Proceeds—To improve facilities and
for
United Gas Corp.,
Shreveport, La.
^
v
filed $3,500,000 of participations in the Em¬
ployees' Stock Purchase Plan of this company and its-
...
1984.
Spokane Seed Co., Spokane, Wash.
—
None.
(4/13)
bank loans and for con¬
Underwriters—To be determined by
repay
March 8 filed $600,000 of 5% convertible
debentures due
June 15, 1964, to be sold to
pea growers located in East¬
if Regal Plastic Co., Kansas City, Mo.
March 29 (letter of notification) 60,000 shares of common
stock (par 25 cents).
Price—At market (approximately
$4 per share) offered to warrant holders at 1 cent per
share and exercisable at $2 per share.
Proceeds
For
general corporate purposes.
Underwriter — S. D. Fuller
& Co., New York.
242,
Boston
up to
April 13 at office of Commonwealth
Services, Inc., 20 Pine Street, New York, N. Y.
11
mon
common
First
Hutzler; The First Boston Corp.; Equitable Securities
Corp.; White, Weld & Co. and Shields & Co. (jointly);
Blair, Rollins & Co. Inc. Bids—To be received
N.
March 30
•
The
competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
Smith, Barney & Co.; Kidder, Peabody &
Co.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. &
City, Utah.
March
Inc.;
$8,000,000 first mortgage bonds due April
Proceeds—To
struction program.
-
of notification) 1,170,000 shares of
common stock (par 10 cents).
Price—25 cents per share.
Proceeds—To complete plant, repay obligations and for
Office —1820
Co.,
Southern Indiana Gas & Electric Co.
(letter
working capital.
77
Common stockholders will
subscribe
for
share of each class of stock at $12.50
per
units
unit.
of
one
•
Winston & Newell Co.,
Hopkins, Minn. (4/9)
19 filed 12,000 shares of
5.40% cumulative
March
pre-
ferred stock (par $50).
ment.
Price—To be supplied by amend¬
Proceeds—To reduce bank loans. Underwriters—
J. M. Dain &
Co., Piper, Jaffray & Hopwood and Wood-
ard-Elwood & Co., all of
Minneapolis, Minn.
Name—In April, 1954, name will be
Change in
changed
Valu
to
Super;
'
Stores, Inc.
if Wisconsin Electric Power Co. (4/28)
April 7 filed 421,492 shares of common stock
(par $10)
to be offered for subscription
by stockholders of record
about April 28 on the basis of one new share for
each
ten shares held
(with an oversubscription
Price—To
property
None.
be
supplied by amendment.
additions and improvements.
privilege).
Proceeds—For
Underwriter—
•
• Wisconsin Electric Power Co.
(5/4)
April 7 filed $20,000,000 first mortgage bonds due 1984.
Proceeds—For property additions and
improvements.
Underwriter—To be determined by competitive
bidding.
..
Continued
on
page
7&-
*
,
78
The Commercial and Financial Chronicle...
Thursday, April 8, 1954
(1606)
Continued, from page
77
Stuart & Co. Inc.; Glore, For-
Probable bidders: Halsey,
& Co.; Kuhn, Loeb & Co.; Lehman Brothers and
Bros. & Hutzler (jointly); Union Securities
gan
Salomon
and Harriman Ripley & Co. Inc. (jointly); The
Corp.; Equitable Securities Corp.; Merrill
Corp.
Boston
First
Bids—Tentatively ex¬
Lynch, Pierce, Fenner & Beane.
pected to be received on May 4.
(4/14)
sinking fund debentures due
1974 and 220,000 shares of common stock (par $1). Price
—To be supplied by amendment. Proceeds—To retire an
unspecified amount of first mortgage bonds and bank
loans, for expansion and working capital. Business—
Manufactures air conditioning and refrigeration equip¬
•
York Corp.,
York, Pa.
March 25 filed $18,000,00 of
Underwriters—The First Boston
ment.
Chicago Great Western Ry.
26, the ICC dismissed the company's application
for exemption of an issue of $6,000,000 collateral trust
bonds due Nov. 1, 1978 from competitive bidding. Pro¬
ceeds
To repay bank loans and for capital improve¬
ments.
Underwriters—May be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly); Kidder, Peabody
& Co. and White, Weld & Co. (jointly); The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane. On April
23, last year, the road rejected the only bid made of
98.05% for a 5%% coupon by Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly).
Feb.
Corp. and Kid¬
der, Peabody & Co., both of New York.
—
(4/15)
Chicago & North Western Ry.
Bids will be received by the company up to noon
(CST)
April 15 at 400 West Madison St., Chicago, 111., for
on
the purchase from it of $4,695,000 equipment trust cer¬
tificates to be dated May 1, 1954 and to mature in 15
equal annual instalments to May 1, 1969.
Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair, Rollins & Co. Inc.
ders:
Prospective Offerings
Alabama Gas Corp.
March
20
1
'it
was
announced
Colonial
March 12
7,.^
stockholders will vote April
approving an increase in the authorized common
(par $2) from 1,000,000 to 2,000,000 shares. South¬
ern
Natural Gas Co., parent, owns about 99% of the
presently outstanding common stock. There are no plans
for immediate financing.
Underwriter—None.
v
on
posal
may
Fund,
it
reported that, in connection with pro¬
this Fund, a block of capital stock
be offered publicly through Stone & Webster Se¬
curities
was
Corp., New York, and associates.
Colorado-Western
March 5 it
Pipeline Co.
announced company
was
has applied to Colo¬
rado P. U. Commission for
authority to build a $21,500,pipe line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity
capital.
John R. Fell, a partner of Lehman Brothers, is
natural
000
gas
(5/6)
preparing a $50,000,000 financing program which will include the issu¬
ance and sale of 350,000 shares of new $100 par convert¬
ible preferred stock (carrying a dividend rate between
3 %% and 4%%) and $15,000,000 of debentures or notes.
Proceeds
To be added to general funds.
Meeting—
June
Stockholders will vote May 5 on a proposal
and
the authorized preferred stock
in 1954.
additional $40,000,000 of senior debentures later
Proceeds—For construction expenses and to re¬
pay
bank
Allis-Chalmers
Manufacturing Co.
March 23 the company announced it is
—
to increase
(par $100) from 259,481
(118,854 shares outstanding) to 618,854 shares.
Underwriter—Previous financing was underwritten by
Blyth & Co., Inc., New York. Registration — Of pre¬
ferred expected about April 15. Debt financing may be
private.
shares
a
Vice-President.
v
Columbia Gas
March 5 it
issue
to
an
a
determined
System, Inc.
sell $40,000,000
and
plans early in
of senior debentures
loan of $25,000,000.
Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
American Natural Gas Co.
28
was
Connecticut Light & Power Co.
7 it was reported company plans to raise between
increasing
on
$10,000,000 and $20,000,000 in
announced stockholders will vote
the
authorized
common
stock
April
from
4,000,000 to 5,000,000 shares to enable the company to sell
additional shares when necessary.
Offering will prob¬
ably be made to present stockholders: Proceeds—To sub¬
stock.
and
&
Arkansas
22 it
Louisiana
Gas
Co.
reported Cities Service Co. may sell its
holdings of 1,900,000 shares of this company's stock.
If
was
sold at competitive
bidding, bidders
include Smith,
Barney & Co. and Blyth & Co., Inc. (jointly).
may
Arkansas Power & Light Co.
Feb. 8 it was reported company plans to sell, probably
August,
bonds
an issue of about $7,500,000 first mortgage
1984.
Underwriters — To be determined by
due
competitive bidding.
Probable bidders: Halsey, Stuart
Inc.; The First Boston Corp.; Lehman Brothers,
Webster Securities Corp. and White, Weld &
Co.
(jointly); Blyth & Co., Inc., Equitably Securities
Corp. and Central Republic Co. Inc. (jointly); Merrill
Lynch, Pierce, Fenner & Beane and Union Securities
Corp. (jointly).
&
Co.
Stone
&
Boston Edison Co.
Feb.
15
it
announced
was
company
plans to issue and
sell about $15,000,000 of first mortgage bonds due 1984.
Proceeds—Foir construction program.
Underwriters—To
be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); White, Weld &
Co.; Harriman Ripley &
Co. Inc.
Offering—Tentatively expected in June.
man
Carrier Corp.
Feb.
the
23
stockholders approved a proposal to
authorized common stock (par $10) from
increase
1,600,000
shares to 5,000,000 shares and the authorized
preferred
stock (par $50) from
181,855 shares to 800,000 shares
to provide for further
possible financing. Proceeds—
For
expansion, etc.
Co. Inc. and
Underwriters—Harriman Ripley &
Hemphill, Noyes & Co.
Central Hudson Gas
March 8 it
was
& Electric
Corp.
announced issues of mortgage bonds and
preferred stock
inite
are
now
under
consideration, but def¬
plans will depend largely upon developments in
Construction cash requirements
the securities markets.
are
estimated at
$17,300,000 for 1954-1955. Company is
reported to be considering the issuance of about $9,000,000 bonds this fall and
$3,500,000 of preferred stock in
1955.
Underwriter—Kidder, Peabody & Co., New York.
Central Illinois Electric & Gas Co.
stock:
Putnam
Co.; Chas. W. Scranton & Co., and Estabrook & Co.
be placed privately.
Consolidated Edison Co.
Inc.
of New York,
applied to New York P. S. Commis¬
sion for authority to issue and sell $50,000,000 of first
and refunding mortgage bonds, series K, due 1984. Pro¬
ceeds—To
and
redeem
outstanding New York Steam Corp.
Westchester
Lighting Co. bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; The
First Boston Corp. Bids — Expected to be received on
May 11.
Consolidated Natural Gas Co.
competitive bidding.
Probable bidders: Halsey, Stuart
Stone & Webster Securities Corp.; Kidder.
Peabody & Co. and White, Weld & Co. (jointly).
|
^ Central Maine Power Co.
&
Co. Inc.;
William F. Wyman,
President, on April 1 reported that
the company expects to sell
$5,000,000 of convertible pre¬
ferred stock late in the second
quarter of 1954, but that
details of the offering are not available
at this time. Pro¬
ceeds—For construction
program. Underwriter—May be
determined by competitive
bidding. Probable bidders:
Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly);
Harriman Ripley & Co.
Inc.; Coffin & Burr, Inc.
basis of
one
new
$12.50
par
share for each three shares
First National Bank of Toms River, N. J. (5/14)
12 it was announced bank plans to offer for sub¬
Jan
scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to
expire on June 16. Price—$50 per share. Proceeds—To
increase capital and surplus.
•
Florida Power
Underwriter—None. •
Corp.
March 27, it was announced that the company
financing late this
ance
of
For
—
stock
plans new
require issu¬
stock and probably $10,000,000
common
Proceeds
which would
summer
new
construction.
(first to
of bonds.
Underwriters
—
For
stockholders), Kidder,
Merrill Lynch, Pierce, Fenner &
common
Peabody & Go. and
Beane (jointly).
For bonds, to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lehman Brothers; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly). Common stock was increased by stock¬
holders on March 25 from 2,500,000 shares to 5,000,000
shares, and the preferred stock from 250,000 shares to
500,000 shares.
;
Florida Power & Light Co.
25 it was reported company
Jan.
may later this year
$15,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane; Glore, Forgan & Co. and Harriman Ripley &
Co. Inc. (jointly).
;
Foote Mineral
Co., Philadelphia, Pa.
Feb. 20 it
was announced stockholders will vote April
increasing the authorized common stock (par $2.50)
from 500,000 shares to 1,000,000 shares. There are pres¬
ently 276,088 shares outstanding and an additional 43,217
on
shares
reserved
are
for
conversion
of
debentures
and
the
remaining 180,695 shares are available for the em¬
ployees' stock bonus plan. The proposed increase in
capitalization is necessary to provide additional shares
to finance the continued growth of the company, or if it
seems
advisable for stock dividends
or a
stock split.
•
General
Up}
Acceptance Corp.
(5/4)
reported company plans registration,
probably next week, of $4,000,000 convertible debentures
due 1984 (with warrants). Underwriter—Paine,
Webber,
March
22
it
Jackson &
•
was
Curtis.
General Public Utilities
March 8 it
Corp.
(5/12)
announced company plans to offer about
was
606,576 additional shares of
common
stockholders
one
shares held
on
the basis of
new
stock
(par $5) tto
share for each
15
chase stock of
Underwriter—None, but Merrill Lynch, Pierce, Fenner
& Beane may act as clearing agent.
company's operating subsidiaries, who in
apply these proceeds for construction. Under¬
writers
To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White,
Weld & Co. and Paine, Webber, Jackson & Curtis (joint¬
ly); Morgan Stanley & Co. and The First Boston Corp.
(jointly). Bids—Expected to be received up to 11:30
a.m.
(EDT) on May 25.
turn will
—
on
or
Granby Consolidated Mining, Smelting
& Power Co., Ltd.
March 23 it
was announced that the company
may find
it necessary to sell a bond issue or to issue the balance
of its unissued
common
shares, of which there are
149,739.35 of $5 par value. As the company's shares are
selling on the New York Stock Exchange at about
$7.50 per share it is necessary that stockholders on April
Duquesne Light Co.
March 8, Philip A. Fleger, Chairman, stated that about
$24,000,000 of new capital will be required during 1954
and that plans for obtaining the necessary funds will be
now
announced in the
financing Granduc Mines, Ltd., in which Granby
near
future.
Underwriters—To be de¬
termined by competitive bidding.
for bonds—Halsey, Stuart & Co.
Probable bidders:
(1)
Inc.; The First Boston
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co., Union
Securities Corp. and A. C. Allyn & Co., Inc. (jointly);
White, Weld & Co.; Drexel & Co. and Equitable Secu¬
rities Corp. (jointly); Harriman, Ripley & Co., Inc.
(2)
For common stock—Kidder, Peabody & Co. and White,
Weld & Co.
(jointly); Blyth & Co. Inc. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Stone & Webster Securities Corp.; The First
Boston Corp. and Lehman Brothers (jointly); Carl M.
Loeb, Rhoades & Co. and Wertheim & Co. (jointly).
Eastern Utilities Associates
March
it
8
was
announced
company plans the sale not
1954 of abbut $2,000,000 of common
stock, probably first to stockholders. Proceeds—To re¬
later
pay
/
than
Oct.
1,
Empire District Electric Co.
March
16
it
about
the
program.
was
reported
company
plans the sale
40,000 shares of
middle
of
1954
of
not
over
if market conditions are favorable.
$4,000,000 to be used for construction
Underwriters—The First Boston Corp, New
stock,
York; and G. H. Walker & Co., St. Louis, Mo.
Fidelity Trust of America, Dallas, Tex.
22 it was announced that company plans to in¬
crease
its capitalization to $3,000,000, following which
a
registration, statement will be filed with the SEC to
Dec.
authorize
a
13
approve
be
can
an
sold
issuance of the unissued shares before they
at a premium.
Proceeds—To be used for
new
offering.
There
are
presently author¬
ized 35,000 shares of no par value, of which 33,750 shares
will be outstanding following present offering and sale
of 30,000 shares of common stock at $10
per share.
Business—A discount and lending organization. Office—
Fidelity Bldg., Dallas, Tex,
Underwriter—May be Boylen, Kasper & Co., Dallas, Tex.
owns
interest.
Indiana &
Jan. 27 it
Michigan Electric Co.
was
announced
November, 1954,
gage bonds due
company plans to sell around
issue of about $16,500,000 first mort¬
1984 and 40,000 shares of cumulative
an
preferred stock (par $100).
Underwriter — To be de¬
termined by competitive bidding.
Probable bidders: (1)
For bonds—Halsey, Stuart & Co.
Inc.; Union Securities
Corp., Goldman, Sachs & Co. and White, Weld & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—The First
Boston
Corp.; Smith, Barney & Co.; Lehman Brothers;
Union Securities Corp.
Jersey Central Power & Light Co.
16 it was reported company tentatively plans to
and sell in 1954 about $6,000,000 first
mortgage
Dec.
issue
bonds due 1984.
Proceeds
Underwriters
bank loan.
Proceeds—About
repay bank loans and for
Underwriters—To be determined by
of
value capital stock on
'held;
rights to expire on April 15. Price—$40 per share. Pro¬
ceeds—To increase capital and surplus.
UnderwriterUnsubscribed shares to be purchased by Transamerica
Corp.
the
about May 12; rights to expire June 2.
Price—To be determined just prior to the offering date.
Proceeds—To be invested in the domestic subsidiaries.
preferred
construction.
shares
issue and
total of 400,000
(5/25)
Jan. 27 it was reported company plans to issue and sell
$25,000,000 of debentures due 1979. Proceeds—To pur¬
mortgage bonds. Proceeds—To
new
additional
a
derwnter—Estabrook & Co., New York and Boston.
(5/11)
Dec. 9 it was announced
company intends to offer and
sell around the middle of 1954 an issue of
$4,000,000 first
*
common
March 22 company
None.
in
1954 from sale of bonds
Bonds may
sidiaries for their construction programs. Underwriter—
Feb.
Underwriters—For
(Ore.)
approved a proposal to
sell to stockholders of record Feb. 26
22
Dec.
March 11 it
stockholders
issue and sell about
announced that company
was
23
common
Inc.
to mutualize
stock
First National Bank of Portland
Feb.
To
—
For construction program.
be determined
by competitive bid¬
ding, Probable bidders: Halsey, Stuart & Co. Inc.; White,
Co.; Glore, Forgan & Co.; Kidder, Peabody &
Co.; Union Securities Corp., Salomon Bros. & Hutzlei
—
Weld &
and Merrill Lynch, Pierce, Fenner & Beane
The First Boston Corp.: Lehman Brothers.
(jointly);
Kansas City Power & Light Co.
March 8 it was announced that
company may sell in the
latter part of 1954 $16,000,000 first
mortgage bonds. Pro¬
ceeds — To repay bank loans and for new
construction.
Underwriters—To be determined by competitive
bidding.
Inc.; Lehman
Brothers and Bear, Stearns & Co.
(jointlv); Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Union
Securities
Corp. (jointly); Glore, Forgan & Co.; Blyth & Co., Inc.
and The First Boston Corp.
(jointly); White, Weld & Co.
and Shields & Co. (jointly); Harriman
Ripley & Co. Inc.,
Equitable Securities Corp. Meeting — Stockholders will
vote April.27 on approving new
financing.
Probable
bidders:
Halsey,
Stuart &
Co.
•
Number 5314
Volume 179
...
The Commercial and Financial Chronicle
Kansas-Nebraska Natural Gas Co., Inc.
March 24 it was reported
shares of 5% cumulative
sell 10,000
(5/3)
it Northern Natural Gas Co.
...
March 31 it
plans to issue and
company
sell
preferred stock (par
Inc.
•
Pittsburgh, Pa.
2,000,000
from
stock
common
increase the authorized
shares (1,867,125 shares
3,000,000 shares. There are no imme¬
diate plans to issue any of the additional stock. Under¬
writer—The First Boston Corp., New York.
outstanding)
March 4 it was announced company
$70,000,000
about
bonds
For
to, be
Probable bidders:
Nebraska
announced company has applied to the
was
Railway
Commission
the
on
held
basis
with
of
authority
for
sale
share
new
one
to
issue
scheduled
for
for
each
nine
June.
It
thereafter expects to market $24,000,000 of sinking fund
plans later this year
additional financing. Underwriter—
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; W. C. Lang-
ley & Co.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); Smith, Barney & Co. Underwriters for com¬
mon stock
may be Blyth & Co., Inc., The First Boston
Corp. and W. C. Langley & Co. and associates.
May
pro¬
Underwriter—Probably Blyth & Co., Inc.,
gram.
Proceeds—For
or
construction
New
debentures
1974.
due
York and San Francisco.
Northern States
Feb. 8 it
was
sale of
and
Power Co.
reported
approximately $20,000,000 of first mortgage
Underwriters
bonds due 1984 in October of 1954.
To
an
Underwriters—May be determined by competitive'
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomor
poses.
bidding.
(jointly).
& Hutzler
Bros.
Metropolitan Edison Co.
Dec. 16 it was reported company may sell in 1954
aboui
1984. Proceeds—Foi
construction program. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Kidder, Peabody & Co
$3,500,000 first mortgage bonds due
and Drexel & Co.
mon
(jointly); Kuhn, Loeb & Co. and Salo¬
(jointly).
Bros. & Hutzler
by
Probable bid¬
competitive bidding.
•
Ogden Corp., New York
April 1 stockholders approved
Dec.
28
it
was
announced
company
plans to issue and
of common stock and borrow $18,000,000
banks in connection with proposed acquisition of
sell $14,000,000
from
1,500,000 shares of common stock of Gas Service Co. of
Kansas City, Mo., at a total cost of $32,000,000. Follow¬
ing consummation of proposed merger of the two com¬
panies, it is planned to sell $9,000,000 of first mortgage
bonds, $2,500,000 of debentures and 65,000 shares of
preferred stock (par $100). Proceeds — To retire bank
loans.
Underwriter—For common stock (now in regis¬
March
17
sell
it
was
reported that company plans to issue
this
late
year
some
Inc.
& Co.
'
*.
,
★ National Fuel Gas Co.
Feb. 26 it
was
announced stockholders will vote April 27
shares to 1,000,000
shares.
No immediate plans to issue
of the additional stock have been announced. Un¬
derwriters—Harriman Ripley & Co. Inc., and Smith,
Dillon, Read & Co., New York, handled secondary offer¬
ing in 1943.
V
New
Jersey Power & Light Co.
it was reported this company tentatively plana
issue and sale in 1954 of about $3,000,000. first mortgage
bonds due 1984. Proceeds—To repay bank loans and for
c.ow construction.
Underwriters—To be determined by
Dec.
16
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co. and Lehman Brothers
Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane.
(jointly);
v
New
Feb.
Service Inc.
reported company plans to offer for sale
Orleans
8 it. was
$6,000,000
Public
of first
due 1984 late this
determined by competitive
Halsey, Stuart & Co. Inc.;
Union Securities Corp. and
(jointly); Lehman Brothers;
Stone & Webster Securities
mortgage
Underwriters—To be
Probable bidders:
Equitable Securities Corp.;
year.
bidding.
Harriman Ripley & Co. Inc.
Kidder, Peabody & Co. and
bonds
Corp. (jointly); The First Boston Corp.; White, Weld &
Gas Co.
Pioneer Natural
announced that Sinclair has under
disposal of its holdings of 769,721 shares of Pioneer
and 384,860 shares of-Westpan Hydrocarbon Co.
stock. Underwriter—Union Securities Corp., New York,
underwrote recent sale of Sinclair's holdings of Colorado
the
stock
Gas
Interstate
Co.
stock.
j<l
March 26 company applied to
mission for authority to
issue and sell $20,000,000 first
— For construction
program.
Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co. and Salomon Bros. & Hutzler (joint¬
ly); Union Securities Corp.; The First Boston Corp. and
Glore, Forgan & Co. (jointly); Lehman Brothers, Har¬
riman Ripley & Co. Inc.; Hemphill, Noyes & Co. and
Drexel & Co. (jointly). Bids—Expected about the mid¬
dle of May.
mortgage bonds.
.
Northern
March 12 it
Proceeds
Illinois
was
Gas
Co.
announced directors have authorized
a
public offering, subject to market conditions, of 400,000
shares of common stock about May 1. Proceeds — For
construction program. Underwriters—The First Boston
Corp. and Glore, Forgan & Co., both of New York.
expected
are
to
(4/29)
be received
by
the
company
in
annually to
Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.
1,
1969.
Probable
bidders:
Tennessee Gas Transmission Co.
Jan. 27 it
company plans issuance and sale
in April or May and $25,000,000 of first mortgage pipe line bonds in July. Pro¬
was
reported
of $20,000,000 of debentures
construction.
new
Underwriters—To be de-
Texas
Eastern Transmission
March 5 it
increasing the authorized
on
Corp.
announced stockholders
was
Read &
Co.
will vote April
stock' from 7,Underwriter—Dillon,
common
Inc., New York.
Toledo Edison Co.
March 3
20
it
announced
was
the
increasing
on
stock from
stockholders will vote April
authorized
First
Boston Corp.,
Co., Toledo, Ohio.
&
cumulative
New
preferre'd
Underwrit¬
and Collin,
300,000 shares to 500,000 shares,
York,
Trans-Canada Pipe Lines, Ltd.
was annouced that the cost of the building
March 26 it
of the proposed
cross-Canada gas pipeline would be ap¬
proximately $292,000,000, which would be financed
through the issuance of about $36,500,000 each of com¬
mon stock and debentures and $219,000,000 of first mort¬
gage bonds. Underwriters—Lehman Brothers and Wood,
4Gundy & Co., Inc., both of New York.
Tri-Continental
Corp.
March 30 stockholders voted to reclassify 500,000 shares
of presently authorized but unissued $6 cumulative pre¬
ferred
new
stobk, without
class
of
par
preferred
value, into 1,000,000 shares of a
stock, $50 par value, making
refunding mortgage bonds due 1984). Under¬
possible
bonds will be determined by competi¬
Probable bidders:
Halsey, Stuart & Co.
stock at
tive
Underwriter—Union Securities Corp., New York.
and
bidding.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The
First Boston Corp. Bids—Tentatively expected on May 26,
& Webster Securities Corp.
at
$14,000,000, will require further financing. Common
stockholders in 1953 was underwritten
Union
appropriate time, when conditions warrant.
Oil
March 8 it
vote
refunding of the outstanding $6 preferred
a
an
Co.
of
California
announced
was
stockholders
increasing the authorized
on
on
April 13 will
common
stock from
7,500,000 shares to 15,000,000 shares. The company said
it has no immediate plans to market the additional
shares.
Underwriters—Dillon, Read & Co., New York.
Virginia Electric & Power Co. (5/18)
March 17 it was reported company plans to issue and
sell $25,000,000 first refunding mortgage bonds due 1984. (
Proceeds—To repay bank loans and for new construc¬
tion. Underwriter — To be determined by competitive
Probable bidders: Halsey, Stuart &
bidding.
Co. Inc.;
by Merrill Lynch, Pierce, Fenner & Beane. An issue of
$8,000,000 bonds were, also sold last year at competitive
bidding, with the following making bids: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Kuhn, Loeb &
Kuhn, Loeb & Co. and Wertheim & Co. (jointly); Stone
& Webster Securities Corp.; White, Weld & Co.; Union
Securities Corp.; Salomon Bros. & Hutzler.
Bids—Ex¬
pected to be received on May 18. Registration — Tenta¬
tively scheduled for about April 19.
Co.; Stone & Webster Securities Corp.; The First, Boston
Corp. and Salomon Bros. & Hutzler (jointly); Lehman
Oct.
stock financing to
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
St.
Joseph Light & Power Co.
March 30,
C. A. Semrad, President, announced that the
raise new money this year through the
sale of $1,000,000 first mortgage bonds or from tempo¬
rary bank loans for its 1954 construction program, which,
it is estimated, will cost $1,661,000. Underwriters—May
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.,
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.
may
company
on
Paper Co.
it
23
announced
was
stockholders
increasing the authorized
will
common
vote April
stock from 5,-
000,000 to 10,000,000 shares and the authorized indebted¬
ness of the company from $25,000,000 to $50,000,000.
The
company has
no
specific financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
Drexel & Co., Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
Scudder Fund of
Jan.
29 it
Canada, Ltd.
announced
company intends to make an
public offering of its common shares in the United
States to realize at least $5,000,000.
/
was
initial
South
March
new
Carolina
it
Generating
Co.
a subsidiary of
Co., is planning to issue
sell $12,000,000 of bonds.
Proceeds—To pay for
construction.
Underwriter—May be determined by
South
and
1
was
reported this
company,
Carolina Electric & Gas
•
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. „(jointly).
((<\]t
by
writers—For any
first
27
the New York P. S. Com¬
Bids
(5/26)
27, G. H. Blake, President, announced that a $50,000,000 financing prograi#-is expected in the Spring
The type of securities to be issued is still undetermined
but some form of debt financing is indicated (probably
Feb.
Corp.
★ Southern Pacific Co.
★
C. Spencer, President of Sinclair Oil Corp.,
formulation plans for
March 26, P.
Scott
New York State Electric & Gas
& Co.; The First Boston
Corp.; Merrill Lynch,
Pierce, Fenner & Beane; White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co. Offering
—Expected in May or June.
>
Norton
•
Co.
#
may include Halsey, Stuart & Co. Inc.; Lehman
Brothers and Salomon Bros. & Hutzler
(jointly); Kuhn,
ers—The
Barney & Co., New York.
it Rockland Light & Power Co.
April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction program, estimated
construction.
new
"•
If competitive bid¬
Loeb
increasing the authorized common stock from 740,000
on
Underwriter—
Proceeds—For
$15,000,000 debentures.
500,000 shares to 10,000,00d shares.
Pennsylvania Glass Sand Corp.
it Puget Sound Power & Light Co.
April 5 the directors approved a program designed to
refund the company's long-term debt. Bidders may in¬
clude Halsey, Stuart & Co. Inc.; Lehman Brothers; Stone
shares.
reported company plans issuance and
was
ders
27
offer about
subscription
by stockholders later this year or early next year, sub¬
ject to approval on April 29 of a proposal to increase the
authorized
capital stock from 4,000,000 to 6,000,000
April 1 it was reported company plans to
400,000 shares of capital stock (no par) for
it
sale of about
rowings. Underwriter—May be Alien & Co., New York.
Jan.
Proceeds—To repay bank loans and
bonds.
★ Southern New England Telephone Co.
March 26
ceeds—For
Public Service Electric & Gas Co.
additional first mortgage
for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair, Rollins
and
★ Southern New England Telephone Co.
it was reported
company, in addition to de¬
financing, plans to issue and sell to its stock¬
holders about $10,000,000 of additional common stock
(par $25). Underwriter—None.
termined
tration): Kidder, Peabody & Co.
Montana-Dakota Utilities Co.
Co.; Union Securities
done privately.
March 26
issuance of $20,000,000
debentures and 300,000 shares of preferred stock (par
$50) and increased the authorized common stock from
3,404,135 shares to 5,500,000 shares. Proceeds—To com¬
plete certain acquisitions and to repay short-term bor¬
any
Missouri Public Service Co.
&
was
April
determined
$24,610,000 Atlanta. Knoxville & Cincinnati Division 4%
bonds due May 1, 1955, and for general corporate pur¬
sell
Peabody
Riter
(jointly)-; Kuhn, Loeb & Co.,- A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly).
RR.
Kidder,
Previous financing
ders:
be
reported that the company may issue and
issue of bonds late in. 1954. Proceeds—To retire
Louisville & Nashville
(jointly);
Corp.
New York up to noon (EDT) on April 29 for the
pur¬
chase from it of $7,905,000 equipment trust
certificates,
series NN, dated April 15, 1954 and due
—
Halsey, Stuart & Co. Inc.; Lehman Brothers and
Co.
&
(jointly); Smith,-,,Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. and Union Securities Corp.
Nov. 12 it was
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp. and Lehman Brothers
-
(Minn.)
is planning the issuance
company
79
benture
Northern Natural Gas Co.
March 29 it
shares
construction program, which will require
to finance its
Inc.; Blyth & Co.,
Offering—Expected in May.
holders
additional common stock and mortgage bonds
issue
to
Proceeds—To
365,000 shares of common stock to be offered to stock¬
to
Island Lighting Co.
Long
debentures.
like amount of 4V2% debentures sold last June.
a
Probable bidders: Halsey, Stuart & Co.
Underwriters—The First Trust Co. of Lincoln,
Chicago, 111.
Hoppers Co.,
announced company plans to issue and
was
issue of $40,000,000 of
Underwriter—To be determined by competitive bidding.
Neb.; and Cruttenden & Co.,
March 29 stockholders voted to
an
refund
$100) and 85,909 shares of common stock (latter to stock¬
holders on a 1-for-10 basis).
Proceeds—For expansion
program.
(1607)
West Coast Transmission Co.
it
14
announced
was
that
company
now
plana to
issue $29,000,000 in l-to-5%-year serial notes; $71,000,000
in 20-year, first mortgage bonds; and $24,440,000 in sub¬
ordinated long-term debentures and 4.100,000 shares of
common
stock
to
be
sold
to
the public.
Proceeds—To
natural gas pipe line from the
Canadian Peace River field to western Washington and
finance construction of
a
Oregon. Underwriter—Eastman, Dillon & Co., New York.
West Texas
March 8 it
Utilities Co.
plans to refund its
$5,500,000 bank loan in the Spring of 1955 through the
issuance and sale of first mortgage bonds. Underwriter^—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
Salomon
Bros.
& Hutzler
(jointly); Merrill Lynch,
Pierce, Fenner & Beane; Equitable Securities Corp.;
Glore, Forgan & Co.; Kuhn, Loeb & Co. and Lehman
Brothers (jointly); Kidder, Peabody & Co.; The First
Boston Corp.
was
announced company
Western Pacific RR. Co.
March
applied to the ICC for exemption
bidding on its proposed $22,5(W,000
debenture
issue.
The 30-year 5%
income securities,
would be. offered in exchange for 225,000 of $100' par
preferred stock, of the more than 300,000 shares out¬
standing. The company plans to offer $100 of deben¬
tures, one-fifth of a share of common, and an undeter¬
mined cash payment for each share of preferred stock
and then redeem the then remaining outstanding 83,211
shares of preferred stock.
from
★
10
company
competitive
Westpan Hydrocarbon Co.
See Pioneer Natural Gas Co. above.
The Commercial and Financial Chronicle. I.
W' <1608)
Thursday, April 8,1954
the Federal debt limit will be
BUSINESS BUZZ
last-minute affair.
the
Behind-the-Scene Interpretations
iron the Nation's
•
xJLff
^.
the
that
revision
tax
the way before June, it
be
Yf/kff
I'tv
fact
bill cannot be got finally out
•
•
/§
Capital
£
St
on
a
of
In view
of
will not
possible to consider the sub¬
ject of raising the statutory debt
M,
limit
For it would
sooner.
be
i
foolish, in the opinion of Con¬
gressional leaders, to have the
liis
program
changes
lations
President
the
Behind
the
put
With the
of
rest
1954
his
the
is that there is a
that there will be
outlook
changes sent to the White
approval.
sbme
i
of
situation
tjie
•whatever
are more
ized
is
nature
that
such
enacted
likely to please organ¬
changes
are
labor, in the net, than man-
and. may or may not
the "Chronicle's"
The Security
I Like Best
House
been
Republican leaders have
insisting that the provi¬
sions
of
the
1949
Housing
Act
pledge the United States to the
payment of public housing sub¬
sidies
the
once
Public
in
an
extensive exploration and
drilling program and from which
Hous¬
ing Administration has entered
By and large the two Labor
Committees of Congress
opposite
their
poles
outlook
wants
thinking
of
on
m
amend¬
T-H
House
The
ments.
at
are
Committee
to
tighten the Act's reg¬
ulation of labor unions and ac¬
of
That is the burden
tivities.
the bill which the House Labor
Committee is turning out.
*
In
the
is
move
tion.
the
in
Committee
liill, in the opinion of spokes¬
men
for business, jeopardizes
the
right
to
management
of
piece before its
its
speak
firm contract with
a
em¬
ice of the local
credit
faith
United
the
of
the
In
other
to
appropriate
these
if
words,
Congress
take affirmative
fails to
subsidies,
action
to
money
pay
the
subsidies
nevertheless remain a liability
the
of
In the Senate bill the ban on
secondary boycotts is seen as
sidies, thus breaking down the
ancient
principle
of
AngloSaxon government that no mon¬
ies shall be paid out of the
act.
,
vitiated seriously, especially
the
proposal to remove the manda¬
tory requirement that the Gen¬
eral
Counsel
an
National
the
Relations
Labor
seek
of
shall
Board
injunction against sec¬
ondary boycotts.
known
1949
Act.
the so-called "free
provision of the T-H
speech"
Treasury.
Treasury
in
except
succeeding Federal Ad¬
ministration devoted to public
housing can induce its Public
Housing Administration to let
a
Respecting national emergency
strikes, the effect of the Senate
out
turn
to
be
that
these
disputes would be pro¬
longed to a point where a de
facto Federal compulsory arbi¬
tration would be brought into
operation.
President Swings Balance
There
are
other
and
plenty of Senators
of the
features
hands
of
possibility, then the
Or
if
grant
other
Federal
this
aid
which
to
learn
Administration
policy of "active ease," and to
learn, if possible, how long a
deliberate
easy
money
policy
would be operated.
They
empty
home
went
handed, it is reported, with
direction
as
the
to
of
the
created
as a
housed
agency
of
ment.
the
Senator
J.
previously
had
wrote in
a
a
the
William
year
of the Depart¬
time
Congress
provision that within
reorganized
should submit
the
hower.
dals in the RFC."
a
FCA
So
Republicans
might
who
et
T-H
Act
liability
of
face
White
the
double
House
and
imion opposition if they oppose
the
bill.
In 1954 Senator
Fulbright has
leading light behind
an inquiry by the Senate Bank¬
ing Committee into the methods
hnd policies used by the Re¬
publican Administration in con¬
been
the
ducting the liquidation of RFC.
view of the
In
net effort
of
the House to strengthen the la¬
bor
it had been long
act,
pected that
deadlock
and
between
the
ex¬
there would be
Senate.
a
the
House
The
House,
incidentally, is likely to remain
firmly anchqred to its tra¬
more
ditional strong support of T-H,
despite
the
President's
influ¬
Arkansas
Senator
the
frank in
hearing so far
on
What
makes
that there is
a
observers think
fair chance for
jfinal legislation, however, is the
that
T-H
avoid
the
President
amendments.
the
This
wants
may
anticipated deadlock
between the House and Senate. ^
was
public
this subject.
one
of
government
capital still invested in those in¬
is the
owns
was organ¬
1934, the Treasury still
$178 million, or all of the
capital
of
the
partly
a
for
restore
ator
Federal
the
its
public
Sen¬
this question.
Bricker
W.
pro¬
coin
gold
(R.,
O.)
tee.
Committee
will
sources
not
yhat kind of a report,
if
the Subcommittee will
any,
ever,
to
Buy Low—Sell
technical
RFC
assets
so
say
on
this
question.
How¬
the committee does intend
losses
which
consider
the idea
in
execu¬
abandon
the
subject
with
Government
lem and
of
due
Democrats,
of
Seek Monetary
Some of the
men
dustry, it is
by
Outlook
insurance
in¬
reported, made
vigorous
appeal
to
a
the
Treasury add Federal Reserve
the
United
request).
New Look in Pension and Profit-
Sharing Plans—Meyer M. Gold¬
Planning Com¬
pany, 260 Madison Avenue, New
York 16, N. Y. (paper).
stein— Pension
WE WILL BUY-
<
It is
now
a
foregone conclu¬
Crosse & Blackwell
sion that the subject of raising
Gorton Pew Fisheries
Merrimac Hat
Federal Coal 5s 1969
Dennison
Manufacturing
Concord (N. H.) Natural Gas
Rumford Printing
United Cape Cod
hi
Cranberry
Morgana Inc. (Units)
American Piano
Carl Marks
FOREIGN
leading spokes¬
for the life
rather
RFC
t-
of
Washington 6,
D.
C(paper), 500 (quantity prices on
Debt Limit to Come Up Late
the
to
Competition: Prob¬
Perspective—Chamber
Commerce
the
public hearings.
big
were
investing —
420-C North Syca¬
Los Angeles 36, Calif., $2.
tive session, and will not simply
bargains in
had been
High—Non¬
on
Stockfax,
more,
the Republicans
there
book
States,
predict
lion of the capital of the Banks
Cooperatives, and $65.6 mil¬
the
is chairman of this Subcommit¬
Inter¬
lion of capital in the Production
on
John
Bookshelf,
the
Committee,
publish
to
of
dicated he didn't want the liqui¬
could
an even
Man's
new
pretty good agency and he in¬
dation to offer any
that
Business
intention of Federal
Banking
standard,
mediate Credit banks, $36 mil¬
for
in¬
time in May.
Subcommittee
to
make
Although the FCA
ized in
assume
aggressive program will be
He said that the RFC had been
maladministration
ence.
tact
The
very
It
Reserve
plan calling-for
stitutions.
repayment
in the natural gas field it is
reasonable to
Will Publish Gold Hearings
hearings
samei
Fulbright (D., A^rk.) was mak¬
ing the headlines with his "mink
coat" investigation of the "scan¬
wish to stand pat on the pres¬
The Federal Land Banks,
semi-
,
the
At
pany
cidentally, will be issuing around
posal
It
holds
now
undertaken than heretofore.
last
agency
interest it
in the company. Should this in¬
terest be taken by another com¬
borrowing
Farm
Credit Administration
an
of the 51%
capital to be raised from
farmers and farmer
cooperatives.
same,
money* some
Pay-Off
year.
com¬
more
refinancing,
been
investment
Treasury and substitute for the
FCA Faces Problem of Capital
Congress
Federal
the
which held hearings on
Fulbright Changes Tune
1951
into
back
the
to
munity its price should more fair¬
ly represent these values. One ad¬
ditional plus value may be the
fact, not previously mentioned,
that Cities Service must dispose
$58 million of bonds, partly for
pro¬
In
lion
Senate
appropriations procedure.
On the other
gather soon to begin trying to
figure out how to get $279 mil¬
within the U. SL Department of
trations may free themselves of
restrictions
officials expect to fore¬
FCA
no
future
monetary policy.
band, the Senate Commmittee
seriously insists that its pro¬
visions carry out the objectives
outlined
by President Eisen¬
.
Board
aggre¬
an
Agriculture, in legislation passed
Adminis¬
Federal
onerous
the
and
the
intended to go with the official
Corporation,
gate for all three types of insti¬
tutions of about $279 million.
by
the dozens, can be modified by
a
similar gimmick in the law,
the
easier
much
how
Credit
and
exist
projects,
future
In
independent
Congress can by
theory be tied.
then
who dislike surrendering to the
unions on the secondary boycott,
posed Senate bil.
not difficult
future
monetary policy.
on
particular, it is said, they sought
sands of public housing units, a
could
the
ascertain
to
outlook
pursuance
of appropriations made therefor.
If
Board
contracts for hundreds of thou¬
bill
extremely good values.
long-term outlook for the
company is favorable and once
the
security
becomes
better
The
pledged indirectly behind these
bonds.
This, of course, is an ac¬
of
be readily seen that
investor
fe-°
is
°
statement
can
Arkansas Louisiana Gas offers the
and
States"
un¬
Conclusion
Thus it
public housing
"full
The
bonds.
will
reserves
doubtedly be forthcoming.
serv¬
Presumably
the Treasury could be forced by
a suit in Court to pay these sub¬
ployees,
additional
local
a
these subsidies to the debt
opposite direc¬
Senate
The
into
public housing authority.
This
is because of a provision of the
1949 Act which directly gears
curate
the
Senate, however,
coincide with
views.]
own
Continued, from page 2
greater application than merely
to public housing.
House for
On the other hand, the
of the
leadership
of public
spectacle
Republican
supporting the cause
housing against the conserva¬
tives opposing this enterprise,
is looming a principle of far
pro¬
gram, the outlook was for en¬
actment of no changes.
Now
Hair chance
the
House
for T-H changes along
on
it
time
same
[This column is intended to re*
fleet the *behind the scene" inter*
pretation from the nation's Capitol
Compel Treasury Payments
act.
Until
heat
the
at
considering tax legislation.
ment.
Taft-Hart¬
the
to
Congress
was
organized labor than to manage¬
Labor-Management Re¬
or
subject of the debt limit before
a
far
ments
price of action is
series of amend¬
more
pleasing
to
likely to be
get
enacted this year
the prospects
for
amendments
ley
drive to
Eisenhower's
final
But the
.WASHINGTON, D. C.—Presi¬
dent
&
Ho. Inc.
Detroit & Mackinac
Rwy.
SECURITIES SPECIALISTS
SO BROAD STREET
TEL: HANOVER 2-0050
-
NEW YORK 4, N. Y.
TELETYPE NY 1-971
LERNER & CO.
tnyestment Securities
i
10 Pest Office Square, Besten 9, Mast
Telephone
HUbbard 2-1990
Teletype
BS 69
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