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'aug 18 1950
ESTABLISHED 1839
BUS. ADM
LIBRA
Commercial
an
<L
Chronicle
Reg. U. 8. Pat. Office
172
Volume
New
Number 4934
Cents
30
Price
York, N. Y., Thursday, August 17, 1950
a
Copy
EDITORIAL
Federal Financing in
As We See It
"The best laid schemes
Such must
agley."
thought of
a
the
with
time
months
daily
good
elections
From all that
away,
the public
press,
the
men gang
may
less
problem of financing the defense
inflation. Recommends drastic cut¬
ting of nonmilitary spending and paying cash for the
defense program.
Finds the President's tax program
inadequate to cover the costs and prevent inflation be¬
than three
well have all but for¬
cause
in November, but the voting will take
up
place, and one can be quite certain that the poli¬
particularly those who must stand for
have
Those aspects
about it.
do
to
we
one
moment
other
are
which
,
involve
a
I
.
in
lie
more
field
be
good strategy were, of course, planning to have a
good deal to say about the fight against race
prejudice and the like, and about all the sweep¬
ing plans for socialistic encroachments that the
President has so often advocated and for which
Dr. Harley
L. Lutz
Los
addi¬
a project which is at least
generations old and, if realized,
mean
an
enlarged and rein¬
forced revival of older arrangements,
two
would
$1,223 million for
i.e
at the recent Annual Outing of the
Angeles at Coronado Island appear
on
page
Funds,
export
some
Theodor
Vogelstein
railway
White,Weld&Co.
Prospectus
40 Wall
Street, New York 5
Chicago
Boston
FRANKLIN
OF NEW YORK
request
on
DISTRIBUTORS, Inc.
64 Wall Street,
New York 5
car
would
Teletype: NY 1-708
Underwriters and
Distributors of Municipal
and
Stocks
Canada
dealers
or
K.
SANDERS ^ CO.
Ill
VAX
OTIS & CO.
Devonshire Street
CLEVELAND
Chicago
New York
Los
Angeles
& Co.
New York
Chicago
Cincinnati
Columbus
Denver
Toledo
115 BROADWAY
Dallas
Buffalo
Portland,Ore. San Francisco
Los Angeles
DoMcnoTi Securities
©rpokatioti
ESTABLISHED 1891
EXCH.
40
BOSTON
.
Goodbody
MEMBERS NEW YORK STOCK
1899
Toronto
20 Exchange PI.
bonds & stocks
(Incorporated)
Established
Office:
bonds
Corporate Securities
Prospectus from authorized
Canadian Bank
46ommence
CANADIAN
and
NEW YORK
105 W.
Exchange Place, New York 5, N. Y.
ADAMS ST.
CHICAGO
perhaps
and
tomorrow
direction of
trade. And
facilitate the ex¬
the
freer
a
sensible
Teletype NY 1-702-3
WHitehall 4-8161
trade
which
the myopic national-
Continued
New York Agency:
Seattle
in
progress
reinstate
26
Head
•Bond Dept.
Canadian
Massachusetts
Investors Trust
The
(BALANCED) FUND
and
worked well before 1914 and which
upon request
THE NATIONAL CITY BANK
UTILITIES FUND
discriminating
foreign buyer, while in
arrangements to
change of Lorraine iron ore (minette) and Ruhr coke by the returning
BOND FUND
INCOME
present
at
times
normalization
Monthly Commercial Letter
COMMON STOCK FUND
,PREFERRED STOCK FUND
—
abolition of price
inland and
between
again giving him the advantage over
the "undisputed area"—would mean
across
A Mutual Fund
Inquiries Invited
the
doubt
against the
older
rail pool and
international
combinations.
No
qjft 600 Branches
inc.
the
differentiation
Security Traders Association
on page 17.
'
,
other
estimatp^for 1951 indicated a deficit
"Ofij&.r bMbnh It is obvious, "therefore, that if there be no change in
any of these programs, there would
be in prospect a deficit of around
Custodian
Franklin
Quai d'Orsay—
yet proven
not
prised by
totaling $10,517
Canadian
Securities
the
but
of
astonished that the world was so sur¬
Continued
of
*
strategists—sprung upon the two hemispheres the project
of a European coal and steel pool, one could only be
billion for the current fiscal year. This is a
prospect which must be radically altered if we are to
avert a substantial rise of the public debt and the crea¬
tion of strong inflationary potential. The first obligation
CANDID SHOTS taken
,
diplomacy
of
aid to the North Atlantic com¬
24
page
A
«
Talleyrands
$20 to $21
Congress—with deep gratitude be it said—has
never
shown much enthusiasm.
Unfortunately,
of the Plan
Scope
' ''
munity of nations, and it is reported
in the press that an additional re¬
quest, amounting possibly to $5 bil¬
lion, would shortly be presented to
the
Congress.
The official budget
those districts where such seemed to be
on
r,_jfi, '
tacticians
excellent
these
of
determination
<^b
4he.Ji.ttle'
•^-When
issues.
the bill to provide
arms
Candidates for of¬
Continued
The purpose of
supply a basis
The
miHiojkJor military purposes in the
fiscal year 1951. On July 2-3 he signed
with the Democrats shouting to high heaven
about the blessings being showered upon us all
(except, of course, the economic royalists) by the
in
to
tional appropriations
shaping themselves in about the conventional
fice
sound
is
upon
The President has requested
some way
25, matters political appeared to
the Fair Deal.
financing.
statement
lor
way,
New Deal and
Federal
financial
corralling enough votes to win elections.
Prior to June
of
coal
and steel combine.
I
this
all, and they
than finding
as
-
Korean—Hpeident" has suddenly forced
the
Foresees American opposition to
N. R. A.
development of vast economic power of European
made.
are
'
super
pean
the
nation the necessity of makigg a.,number of impftcfeffikri*
decisions quickly. Some of the most importanjt^^f^tljgs^ ^
The
phases of this situation, however,
good deal
of meeting current! outlays
they
complicated and possibly
authoritarian expan¬
and final development of Euro¬
Sees in it ground for
sion to other industries
Advises prompt revision and ex¬
means
I
of the subject which have
of vital importance to us
are
only possible
forgotten
gladly leave to the professional politician.
very
unworkable.
a
pansion of extise taxes to supplement other revenues as
the
merely with the politics of this situation
There
of
for
not
months, thereby assuring
many
economic
Mr. Monnet, and criticises it as
under it would not flow
revenues
Treasury for
head-start to inflation.
ticians,
re-election,
the increased
into the
admitting
Plan to unify Western
effort and preventing
gotten that there is such a thing as an election
coming
advantages of Schuman
European iron and coal indus¬
tries, Dr. Vogelstein asserts such a "pool" is a supercartel. Says it would b? largest single industrial combi¬
nation in capitalistic world. Describes set-up of plan by
Though
Dr. Lutz discusses the
reads in the
one
By THEODOR M. VOGELSTEIN
Princeton University
burden of the
political planners at this
many
autumn
of mice and
be
And the U. S. A.
Consultant, National Association of Manufacturers
and Professor Emeritus of Public Finance,
Tax
aft
The Schuman Plan
Crisis
By DR. HARLEY L. LUTZ
on
page
22
2
The Commercial and Financial Chronicle
(622)
MARKETS
TRADING
The
IN
Metal & Thermit
in the investment
Paget Sound Power & Light
bonds
Co.
&
New York Hanseatic
Ordinarily it would be difficult
to select the one security I like
best for the future, but fortunately
1920
120 Broadway, New
York 5
Teletype NY 1-583
BArclay 7-5660
there
is
security,
one
namely
pany
a
meets
all
my
t
Rights & Scrip
cellent
McDonnell &fo.
Members
New
York Stock
York
Curb
Exchange
dividend
BROADWAY, NEW YORK 5
120
Tel. REctor
ord,
2-7815
such
capital
American Air Filter Co.
Consider H. Willett
Incorporated
lot Floor,
Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY
Bell Tele. LS 186
Long Distance 238-9
V
tact
in
and
inch
182
of
width.
of
^
N. Y. Telephone WOrth 4-5000
f
of
States.
Rhinelander
pulp
wood
Company, Kroger, General Foods,
Corn
Products
&
Refining Co.,
National Tea, Tension Envelope,
These
the
ing.
supplies
last
to
bury
stock outstand¬
common
Earnings
for
the
months
6
were
382
on
or
$3.40
per
share
$664,-
common
Rhinelander Company has paid
dividends
every
in
years
when
year
existence
before
there
of
its
except
was
46
two,
wide
any
public ownership it
was elected to
reinvest all earnings in plant ex¬
pansion.
Present dividends
are
at
the rate of $3 per share.1 As stock
is
Mexican
selling about $45
is
Railways
a
6.66% yield.
ending
year
value
of
$52.09
BONDS
per
30,
der
Analysis
on
the
a
share this
As of the fiscal
Sept.
30,
common
1949
book
stock
was
and others too
1949 total assets of Rhinelan¬
Paper
rents
request
numerous
to
extent
an
Louis
expanded
I
that
where,
which
ZIPPIN & COMPANY
Tele. RAndoIph 6-4696
Tel. CG 451
-1=
Spinning
it
Associates
time,
a
rapidly that I opened
so
cities of the
nation.
Every
munity seemed to want
water¬
a
There
roads, sewers, etc.
only
were
limited number
a
of dealers engaged
The
bonds
fund
general
sinking
therefore,
I,
bonds
and
bodies
my
I
defense
and fits the conservative
who
wants
safety.
investor
same
time, due to its aggressive
man¬
agement
At
stock
the
its
and
stock, will
is
were
assets
$14,719,641;
looking
desires
for
capital
The
common
the investor who
good
a
meantime.
charac¬
gains
income
stock
over-the-counter
but
in
has
a
the
good
advocated
with
R.
COMPTON
Company,
City
(State and Municipal Bonds)
The
securities
$5,276,976
were
$1,256,004
that
I
like
State and Municipal bonds.
I
learned something of finance and
banking under the tutelage of
father
was
a
my
who
cash
and
and
maturing
probably
careful
of
turn
ment
N.
I
born.
When
I
the
a
that
.The
debarred
The
notes
of
Dan River Mills Common
Henry B.Warner & Co., Inc.
Members
123
certainly
Union
in
Broad
prime
is
the
and
wealth
TRADING MARKETS
*Lea Fabrics
"Winters & Crampton
"Plywood Inc.
sixty
over
in this
years
still
ethics
of
"Copeland Refriger'n
*lnformation
on
request
been
now
it
find
"Douglas & Lomason
of
the
of
care
have
I
of
supply
The
has taken
The
PH 771
City Tel.: BOwling Green 9-4818
a
seeking
are
investments.
and
Bell System Teletype
PEnnypacker 5-2857
New York
Exchange
the
plethora
a
who
means
nation
Stock
St., Phila. 9, Pa.
in
sta)be. of
every
there
people of
aetna securities
fasci¬
dealers
vastly improved and inves¬
and
nd
Phila.-Balto.
South
people
changes
Corporation
111
Broadway, New York 5
WOrth
4-6400
Tele. N. Y.
1-2494
wide field of bankers
a
dealers
prominent
few
them
of
mi-
to
guide
suited to their needs.
in
the
type of security best
t i ng, be-
m
e
William
R.
Compton
small bank in
Almost imme¬
of
diately the wealth of
my
native
town
me
for in¬
began to
come
to
vestment. At
later
led
taxes
vestors
a
manager
income
to
The
business
finally
grew
to
State
Federal and
before
Even
the
were
imposed,
willing to buy
were
in¬
mu¬
nicipals at lower interest returns.
that
Now
and
we
State
have
income
municipal bonds
than
ever.
to
face,
popular
are more
The
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
large Federal
taxes
sizable
11'Year Performance of
35 Industrial Stocks
issues
BOOKLET
being rapidly absorbed
these
Purolator Products Common
investment
that
of
Light Common
Philadelphia Transportation Co.
ap¬
applicable to interest bear¬
a
were
Outside
Allan Wood Steel Com. & Pfd.
Penna. Power &
invest¬
building
liabilities
1958.
Philadelphia Electric Common
Equitable Gas Common
the
close
accumulating
tors have
stock holder
but
Pocono Hotel Corp. Units
Warner Company Common
West Penn Power Common
was
to
securities.
ing
have
principal
and
funds
went
West
after
a
It
empire
nating.
Middle
c
interest
began to freely
States.
ern
business
I
to
years
revenues
for
century
money
active for
Y.,
was
'teens
g r a
the
the
care
principal.
distribution.
out of my
was
as
Lock-
port,
Enterprise 2904
Enterprise 6800
years
public
in the central and far West¬
pear
our
bank¬
at
Some
until
not
Tele. BS 142
2-5500
Phila. Telephone
to
Ina.
Open End,Phone to New York Canal 6-1613
civic
so-called
provided
users
which served
Dealers
Securities
Hartford, Conn.
desirable
which, when well
has' increased
well-
-
knownand
municipal bonds
bonds) and current which was a much larger field.
$946,615. The com¬ They were limited in size and
pany has outstanding a
total of quality at that time and investors
$2,850,000 2%%, 3%% .and 3%% were scarce, being principally in
long-term notes due quarterly to the Eastern States.
was
the
of
Portland, Me.
this period have been remarkable,
best
are
er
bonds
from
Compton
New York
debts.
the
Assn.
serial
into
conceived, I have always liked
great
William
its
came
market.
WILLIAM R.
first, the money was
(of invested in good farm mortgages
cur¬
paid
later
Nat'l
Tel. HUbbard
results.
and
Quoted
did not like.
pounded
ideas,
—
J. B. Magniie & Co., Inc.
practice
which
Sold
75 Federal St., Boston 10, Mass.
in the field at
long-term
issue
—
com¬
Members
works, school,
revenue
a
Bought
branch offices in various principal
government
208 South La Salle St., Chicago 4
to
moved
after
men¬
tion.
northern Missouri.
share.
For the fiscal year ending Sept.
Bought—Sold—Quoted
Rath
Packing Co.,
Co., Johnson & Johnson
where
stock.
37 Wall Street, New York 5
Mills,
for
small loss). Net
a
ending March 31, 1950
WHitehall 4-2530 Teletype NY 1-3568
Co.,
produces
earnings after taxes for the year
ending Sept. 30, 1949 were $952,or $4.89 a share on the 195,000
shares of
V0GELL & CO., Inc.
York City
United States Envelope
serve
585
Pub. Serv.
St.
to
the
the last 46 years the
has operated at a profit
year (one year revaluation
every
Southwestern
such
was
years.
of assets showed
Southern Production
blue
Co.,
Standard
Brands,
Procter & Gamble, Planters Pea¬
nuts, Bunte Brothers, Armour and
Purina
branch offices
our
Berkshire Fine
Dfolly Madison, National
During
Scranton-Spring Brook Water
New
Co.,
&
Biscuit
Swift &
Mobile, Ala.'
Direct wires to
of Sept.
(Page 30)
Motors,
company
Interstate Power
Gundy
time.
as
NY 1-1557
Orleans, La. - Birmingham, Ala.
I, 1966—W. W. Turnbull, Wood,
that
Ralston
3s
Government
General
45.000 tons of these papers yearly.
The company has sufficient spruce
many
Federal Water & Gas
of Rhine¬
users
growth
Rhinelander
glassine and
in the United
grease proof papers
Teletype BS 259
to
condition is
the teristics,
Rhinelander
make
producer
largest
:
consisted
ation, the two latest being
largest glassine machines in
148 State St., Boston 9, Mass.
company
read like the
Rhinelander is
machines in oper¬
seven
are
goliaths
:
con¬
one of
113 inch
of 103 inch width. Today
one
world
CA. 7-0425
into
come
machines,
there
Tel.
bread,
another papers of
or
times daily.
The original mill
★
Canadian
St., New York 4, N. Y.
HAnover 2-0700
New
New York City (Page 30)
industry, such
many
Request
★
of
highly useful manner
people
of
America
a
most
two
★
from
dates
brands
manufacture
with
on
of
form
one
this
CONTROL
The management
it had before and during
papers
York Curb Exchange
25 Broad
Troster,
Chrysler,
Not much attention was paid in
Company,
Morton Salt Co., Kellogg Com¬
those days to ratings, which were
Dennison
Manufacturing
butter, candy, coffee, cereal prod¬ pany,
few.
Both, the buying house and
ucts, snack foods, ready-to-cook Co., Continental Baking Co., Jewel
Tea Co., Eli Lilly Co., Reynolds the
investor,
however, scanned
prepared and frozen foods, hard¬
ware, drugs, notions—to name a Metals, First National Stores, Lip- carefully the debt statement of a
few. Glassine patches on about a ton
Tea, Kraft Foods, Hormel,
community; its trend of popula¬
billion window envelopes yearly Hasting Piston Rings, Great At¬
tion and looked particularly to see
lantic & Pacific Tea Co., General
carry Rhinelander Paper into and
it were a thrifty community
out of countless offices and homes. Baking Co., General Mills, Pills- if
In
U. S. THERMO
Analysis
Wise.,
crackers, cookies and other prod¬
ucts of the vast baking industry;
bacon,
ham,
lard,
shortening,
BANKERS BOND
lander
use
one
Rhinelander
brought the
York Stock Exchange
em¬
forward-looking and
of the best.
same
J.
Partner, Troster, Currie & Sum¬
mers,
book of
gains.
thousands
Common
and
World War II. The
1903. The company manufactures
glassine and grease-proof papers
for protective packaging.
Tnese
papers help package and protect
Capital Stock
alert
Capi¬
Products, Inc., $1
be repurchased.
prospects
anticipating
Steiner, Rouse & Co!
Members New
Stock —Oliver
tal
ma¬
product
a
destroyed after
necessity
growth
warrant
Rhinelander,
Churchill-Downs Inc.
makes
the
a
William R.
York City
New
it em¬
Another big point is
to
that has
Rhinelander Paper Company of
Common
m
and
to
and
company
its present prosperous
producing
as
is
has
one
Herman B. Cohle
Co.,
people—today
The management of
is
rec¬
product,
456
and
essential
business
1929 the
In
which
creasing earn¬
ings over a
Bonds—Wil¬
Compton,
Members New
compared to 45,000 tons
as
Rhinelander
long period of
years,
long
Exchange
New
•
hardware
of
by heavy grease-proof pa¬
ploys 1,050.
in¬
Bought—Sold—Quoted
Municipal
R.
Purolator
Unit packaging of food is
use.
ployed
man¬
agement,
is
today.
vestment, exp t io n a lly
high yield, ex¬
Louisiana Securities
&
(Page 2)
com¬
manufactures a product that
continuously coming into great¬
Corporation—
pany
nually
c e
Since 1917
the
Alabama &
and
Cohle,
President,
Co., Cincinnati,
Cohle
Compton
is growing, in 1938 the pro¬
duction, was only 13,800 tons an¬
in¬
sound
Paper
B.
and
Thursday, August 17, 1950
Selections
(Page 2)
liam
per
requirements
B.
State
Earned
growth,
concerns
chines
t h
was
shipping
common
stock,
of
As
$3,045,000.
$5,162,616.
was
surplus
H.
Ohio
gaining daily—and packaging for
Paper Com¬
Specialists in
surplus
er
Rhinelander
no
There
shares
mon
(Rhinelander Paper Company)
had
Co.
Paper
preferred stock.
or
Their
Rhinelander
.
Week's
Participants
Herman
195,000 $10 par value com¬
outstanding. Paid in
were
Cincinnati, Ohio
Established
particular security.
Rhinelander
COHLE
HERMAN B.
President, II. B. Cohle
Corporation
a
participate and give their reasons for favoring a
5V2/52
This
Forum
different group of experts
and advisory field from all sections of the country
each week,
A continuous forum in which,
R. Hoe & Co. Com. & Class B
Central Public Utility
Security I Like Best
..
are
lower
constantly appearing,
interest
so
return,
ON
REQUEST
are
that the
with
no
National Quotation Bureau
Incorporated
capital risk,
seems
to be desired.
Continued
on
page
30
46 Front Street
New York
4, N. Y.
Volume 172
Number 4934
..,
The Commercial and Financial Chronicle
(623)
The Favorable Outlook
INDEX
EDMUND W.
Federal Financing in
TABELL
Page
Crisis—Harley L. Lutz
—Theodor
M.
Vogelstein
Cover
_
In light
of business, political, and technical factors, analyst
maintains airline stocks now offer outstanding opportunity for
the patient buyer.
Cites industry's long-term growth trend,
Chemical Industry
Odd-Lot Trading
—Stuart
contrasting it with shares' present historically-low prices.
the
whose
stock
common
interest
chief
is
buyer
in
long-
term
capital gains rather than
current income, I believe that the
air¬
of
stocks
line
the
In
the
Our
entire
war
lines
showed
the
greatest
per¬
centage appreciation of any group
and
advanced
present
The Korean
(7)
In
the
of
event
Of
tax
all
of
my
more
or
graphs
of
individual
,v!
(if 'IT
|Jlip stocks, have
the
airlines
raftv
the
clearest
technical
exemption
contracts
Obviously,
war
emergency,
a
similar
favorable treatment would occur.
The
(8)
these
issues,
dividends,
most
of
are spec¬
not be suitable vehicles
short-term
the
trading. But I be¬
they offer the possibility of
large percentage gains for
The
airlines
"growth"
issues.
1949, passenger
From
1940
and
revenue
increased
revenue
each
to
rev¬
nue
passenger
miles
million
in
small
and
(10)
travel
had
it
1949
the
increased
it
has increased
12.81%.
In
In
Despite
866 in
were
and
airlines
*
18
ship¬
only a
A
institutional
funds,
funds, insurance
the like have a
5
Hytron Radio
7
Says L. V. Sutton..
Housing Credit Is Not Inflationary, Says George Johnson
(Common & Preferred)
Measures
of Protection Against A-Bomb Attack
Analyzed by
National Industrial Conference Board
Investment
Trust
ECA Guarantees
Stromberg Carlson
\2
(Common & Preferred)
SEC Issues Code Governing Advertising and
Selling of
Shares
15
Parke, Davis & Co. Investment
Lone Star Steel
16
...
Economists Urge Prompt Action for Higher Taxes and Controls
in
bonds, preferred
their
to
and
of the
stocks
20
tremendous
a
mand for airline
their
the
(Boxed)
Second Quarter Production at New Peak
33
Bought
growth
The
income.
re¬
securities due to
possibilities.
airline issues
As
We
See It
(Editorial)
Bank and Insurance
Business
Man's
Cover
___
Stocks
Very
Incorporated
4
61
Canadian
Securities
19
higher than in 1940.
sibilities
(3) In addition, at present price
levels, the average airline stock
preciation
wide
of
percentage
from
their
ap¬
BO 9-5133
present
Dealer-Broker Investment
Recommendations.
8
Einzig—"Britain and Rearmament Economy:
Will
From
History
_J_
Repeat?"
AIRCRAFT EQUIPMENT
19
MANUFACTURERS
Washington Ahead of the News—Carlisle Bargeron
Business Activity
Indications of
6
Foote Bros. Gear & Machine
32
._
Funds
Mutual
NSTA
14
____:
Notes
Liberty Products
Texas
8
News About Banks and Bankers!.
Our
May__
selling considerably below the
(12) The potentially unfavor¬
highs. "Barron's" air¬ able factors such as dependence on
line average is now around 40 as our mail subsidies and the com¬
compared with 84.06, Jan. 1, 1946. mandeering of fleets in the event
benefited
stimulus
our
greatly
wartime
of
present defense
economy,
of
tension
airline
economy,
also
tend
June
Lear Inc.
5
increase.
to
over
a
year
the
a
war
peace
would
Traffic
show
a
for
large
to
not rise in
additional business
be over-
emergency may
At
the
end
World
of
both the airlines and the
public
were
future
the
companies
They
new
and
ago.
should
Costs
(5)
proportion
to
Our
Reporter
most
Pearl
of
the
would
advanced
Harbor,
compared
gain
with
a
10%
60%
are
very
of
the
1948,
Salesman's Corner..
Securities
Now
be
period
routes.
Exchange
Street, New York 4
not
1946
U.
S.
40
SAVINGS
BONDS
BECKONS!
-
-
-
-»
year's Annual Convention of the Na¬
Prompt Wite Service ;
FOR BROKERS AND DEALERS
held
Sept.
issue
and
to Virginia Beach,
course,
Security Traders Association, which will be
tional
a
26-30. Again, the CHRONICLE will
Special Convention Issue of this important
To Western markets in
LOS
yearly event.
on
page
29
Published
ANGELES
DENVER
1
Weekly
COMMERCIAL
•
•
SALT
SPOKANE
LAKE
CITY
Drapers'
Gardens,
Edwards
c/o
B.
U.
Park
25
50 Congress Street, Boston 8
ary
COMPANY, Publishers
York,
New York 8, N. Y.
Place,
2-9570
2-8200
-
DANA
WILLIAM D.
8,
to
Worcester
25,
T
RIGGS, Business Manager
Possessions,
111.
135
office
Act
at
of
New
March
in
United
Territories
Union,
Dominion
Canada.
of
States,
Countries, $42.00
TJ.
8.
Members
and
$35.U0
of
per
$38.00
per
year,
per
J. A. HOGLE & CO*
u
ESTABLISHED
year.
year.
Members
17, 1950
South
La
Salle
1915
-
New York Stock Exchange
Thursday (general news and ad¬
issue) and every Monday
(com¬
statistical issue — market quotation
-ecords, corporation news, bank clearings,
state and city news, etc.).
Offices-
post
the
Pan-American
Other
Every
3,
the
under
Subscriptions
Bank
vertising
Other
at
Y.,
1879.
Other
Chicago
Eng¬
Subscription Rates
SEIBERT, President
Thursday, August
C.,
second-class matter Febru¬
as
1942,
N.
9576
Editor & Publisher
plete
1-5
Schenectady
Patent Office
OERBERT D. SEIBERT,
Members New York Curb Exchange
-
S.
DANA
E.
Smith.
Copyright 1950 by William B. Dana
Company
Reentered
WILLIAM
London,
&
and
CHRONICLE
FINANCIAL
Hubbard
Glens Falls
Twice
land
of
Teletype—NY
-
reference, of
site of this
Pas¬
as
Continued
2-4300
Chicago
30
.__
VIRGINIA
We have
increased sharply
between
Spencer Trask & Co.
-
BUY
5
(Walter Whyte Says)__
on
WILLIAM
Albany
2
and Industry....
Washington and You
REctor
HAnover
[
as
decline in
Stock
Exchange PL, N. Y. 5
34
___
Security I Like Best
State of Trade
:
40
Teletype NY 1-1825 & NY 1-1826
investing
optimistic
their
revenue
but
II
HAnover 2-0270
10
Registration
in
The
The
rapidly.
money,
bought
hired big staffs
equipment,
extended
the
Securities
industry.
preferred stocks
York
MACKIE, Inc.
&
20
_____
23
Tomorrow's Markets
War
High Grade Public Utility and Industrial
New
Singer, Bean
37
Securities
Reg.
Members
'
expanded
borrowed
senger
in
interested in offerings
25 Broad
18
J__
Securities
Public Utility
The
We
Governments
on
Prospective Security Offerings
rapidly as the
too rapidly expanded costs. As a
carried down to net earnings.
result, most companies lost money
(6) The airlines, in the war
in the three-year period. Air mail
period from September, 1939 to
subsidies,
which
had
been
reand
^
Eng.
39
The
war
Post-War Optimism
to
In the
traffic
is expected to
gain
of
return
a
a
stressed.
semi-war
occur.
lessening
a
and
of
In
stimulus
airline traffic should
event
traffic.
or
similar
a
the
from
Engineering & Mfg.
Continental Aviation &
21
Report.
Reporter's
Railroad
1945-1946
(4) The airlines in World War
Teletype NY 1-3370
10
...
levels.
is
II
'
Broadway, New York 6
of
very favor¬
accumulation
strong
Quoted
—
J.F.Reilly&Co.
16
Bookshelf
Observations—A Wilfred
patterns
are
able.
much
not
Sold
Regular Features
potential de¬
technical
—
speculative
uncertain
change for the better could
lease
Portsmouth Steel
16
More Truth Than Poetry!
bases have been formed with pos¬
is
*
(Common & Preferred)
as¬
line
today
WHitehall 4-6551
in¬
mutual
as
growth, the average price of air¬
stocks
STREET, NEW YORK
Dumont Laboratories
*
Coming Events in the Investment Field
common
due
character
(11)
tremendous
now
and
invested
sets
1949.
this
are
pension
stocks
addition,
sharply. There
freight
small percentage of their
very
1940
aircraft in service
1940 and
(2)
to
70.30%.
was
number of
369 in
1935. In
financial freedom.
13
____
relatively unprofitable
companies
were
and
miles to Pullman
3.90% in
was
and
Large
such
vestors,
6,816
million in 1949. Another example
of growth is the fact that the ratio
of air passenger
to
Electric Utility Industry Can Cope With
Any Emergency,
can¬
sharply.
trusts,
1940
and
part of airline revenue, could in¬
1949. Reve¬
$389.3 million in
delays
Express
ments, which
flown
and
1,052
*
.
increased.
Passenger
year.
$53.3 million in 1940
was
WALL
Telephone:
installed
are
potential will be greatly
passenger
miles flown have
passenger
cities,
(9)
definitely
are
equipment
more
crease
enue
'
.
cellations will be lowered and the
patient holder because:
(1)
air¬
of
safer than riding in an automobile.
As improved instrument landing
in
very
record
showing constant improve¬
According to some sources,
traveling by scheduled airliner is
they
lieve
safety
ment.
and radar
for
average
a
ulative. Also, from another angle,
may
99
lines is
appreciation.
which pay no
than
is
long-term
Tabell
.
related to mail
was
rather
or invested capital. While
only a conjecture, it appears
probable that due to the impor¬
tance of airline transportation in
it
sub stantial
W.
se¬
11
Economic Stabilization—Leon Henderson
on
door
by obsolete
office you'll find an
our
earnings
pattern for
Edmund
Peterson
Crisis—Roger W. Babson___
excess
an
price levels.
1,200
9
Banks and the War—F. Raymond
At
ever-open
8
The
hemmed in
Advantage Possible
profits tax, the airlines could be
a
special case. In World War II,
they had a favored status. Their
ing
opportu¬
nity at present
Mobilization
you
6
Superfluous Now!—Arthur W. Miller
400%.
over
Are
curities?
4
^
Economic Policies for Today's Problems—Leon H.
Keyserling
Observations
Tax
4
____
Policy Toward Russia—Harold E. Stassen
Economic
NO WAY OUT?
the New York Stock Exchange
Scott
Says There's
3
W. Tabell
Securities—Edmund R. Swanberg
on
period from 1939 to 1945, the air¬
outstand¬
an
market.
compa¬
nies
Who
N. Y. S. E.
The Favorable Outlook for
Airline Issues—Edmund
For
AND COMPANY
Cover
The Schuman Plan and the U. S. A.
Partner, Walston, Hoffman & Goodwin,
Members
LicHTinsTfin
B. S.
Articles and News
For Airline Issues
By
3
St..
(Telephone: State 2-0613);
$25.00
and
Note—On
the
rate
of
Publications
Quotation
per year.
and other Principal Exchanges
Record
Monthly,
(Foreign postage extra.)
account
of
—
the
fluctuations
exchange, remittances
(or
In
io»
eign subscriptions and advertisements must
be
made
In
New
York
funds.
50
Broadway, New York 5
Telephone WHitehall 3-6700
Teletype NY 1-1856
i
'
The Commercial and Financial Chronicle
ducing their cost. Most companies
continually
develop
new
products that meet specific re¬
quirements of industry as well as
Chemical Industry Securities
EDMUND
By
SWANBERG*
R.
Odd-Lot
also
find
Associate, Scudder, Stevens & Clark, Investment Counsel
new
for
uses
Swanberg describes: (1) nature of the chemical industry;
(2) its investment characteristics; (3) factors affecting worth
of chemical securities;
and, lastly, recent developments.
Stresses
These all fall in the category of
research and development. This is
the
achieving
as well as impor¬
Reveals factors of
strength and weakness in chemical company securities, and
lists representative chemical producers whose securities are
rapid growth of chemical
of chemicals
tance
modern
in
chemical
concerns
leader
with
the
and
companies in
is
it
think
I
try,
chemical
the
gentle¬
industry
the
indus¬
necessary
to
cover
trie fol¬
lowing
broad
topics (1) the
of
nature
(2)
the investment
characteristics
the
ol
try;
indus¬
(3)
and
factors
affect¬
ing the worth
of
chemical
securities.
Let
used in
coats,
first
us
is
chemicals
rayon,
material
the
steps
ture
animal
an
We
all
it is?
have
manufactured
In the
companies,
with
plastic
teeth
our
toothbrushes,
behind
curtains,
with
plastic
and
we
shower
shave
we
with
having magic chemical in¬
gredients. All these products and
millions more are derived from
intermediates.
basic
chemical
industry.
these basic
tar,
of
these
examine
and
zene.
wood
two
or
a, typical
is derived. Goal
by-product of the coking
in
the
manufacture
of
a
process
steel.
and
one
of
coal
are
how
see
chemical product
tar is
our
Examples
salt,
gas,
Let's
by
materials
raw
natural
pulp.
materials
From
coal
Benzene
tar
get ben¬
we
in
turn
can
be
into such things as ny¬
lon, synthetic rubber, plastics and
many others. Salt comes from salt
processed
companies
and
then
in
electrolytic,
an
chlorine and
cess,
caustic
and
the chemical industry
largest customer.
Still
other
wide
Chlorine
is
essential
companies
variety
of
produce
—
chemicals, and specialty products.
There
has
postwar
been
trend
a
the
basic
to
plastic
new
gredient
closer
Many
found
take
chemical
it
informal,
non-technical
lecture
given on July 26, 8th in a series of 17
on
Securities Analysis sponsored
jointly
by the New York Securities Industry and
the
of
University
Commerce
of Vermont's
&
Department j
Economics.
more
competitive
a
and
or
for
making
are
have
profitable
the
consumer.
ultimate
companies
in
towards
years
specialty products that
to
turn
it
into
complicated
a
drugs
new
a
in¬
than
to
sell the
to
the
Union
du
actual
as
an
Carbide's
Pont's
"Prestone"
—
and
"Zerex".)
Nature
The
consumer.
example
of
With
chemical
Industry
Prospectus
duced
The
are
farmers
are
consuming
in¬
creased amounts of
fertilizers, insecticides, and herbicides, and also
feed
poultry. The drug in¬
closely connected with
and
dustry
the
is
chemical
& Co.
Detroit
Stock
Exchange
Exchange
1051
Penobscot Building
DETROIT 26, MICH.
Bay City
Lansing
—
for
and
paper,
are
—
Muskegon
of
basic
in
processes
their
own
operations. Changes in demand for
the products of
any of the above
demand for the chemical
products
used
by
shall
see
in
these
industries.
later,
this
appraising
is
the
As
we
important
investment
status of individual
companies.
The
chemical
industry
is
grow
1856
apart
from
normal
growth
associated with higher
population,
H. Hentz & Co.
Members
New
York
New
York
New
York
Chicago
Exchange
Curb
Exchange
Cotton
Commodity
of
New Orleans Cotton
And
other
N. Y. Cotton
Inc.
Trade
Exchange
Exchanges
for
its
DETROIT
PITTSBURGH
the
it
products
dustrial
used
but
demand
by
advertising.
trade
or
the
to
a
power.
has
little
demand
the
use
Some
advertising
the
spread
chemical
other
between
of
nearly
all
commodities
they
has
greatly
strengthening the
chemicals wherever
thus
of
into
come
ing table
of
some
competition
with
The accompany¬
the extent of
indicates
the price
and
Later this
in
changes in
other
the
price indices.
Greenewalt,
Presi¬
auction
i
n
change
Company when
introduce
we
a
new
product we
price that yields a satisfac¬
tory return on our investment. As
set
sales
increase,
endeavor
we
to reduce that
cal
price as technologi¬
improvements and larger vol¬
enable
ume
us
market for the
to
do
ard
unit
of
trading
so
brokers
That
At
that
ness
Then
of
in¬
is
on
busi¬
floor
of
the Stock Exchange, first
by hav¬
ing the prices based
the bid
upon
and
asked
and
subsequently, based
quotations for full lots
actual
on
sales of full lots in the
open mar¬
ket.
The fairness
of
the latter
method
to
the
odd
lot
customer
is obvious.
The
"odd
term
nomer:—the
even
lots"
lots
often
as
in
odd.
as
staunch
bulwark
transactions in
amounts.
is
And
The
inactive
and
lots
in
are
a
en¬
security
standard
"round
unit;
1
odd lots
99 shares.
to
securities,
have
10, 25
such
in¬
than standard
anything from
are
since
free
simply
less
are
to
man
the
of
100-share
a
all
Because
difficult
it
to
need
for
take
all
a
50
or
odd
cases
shares
lots
are
that the
<»and
commodity may be
sales
prices
the
more
pair off odd lots, the
separate
entity to
commitments
lot
odd
for
at
lot
Some Definitions
Before
we
go
further in dis¬
cussing the nature of the industry
few
definitions
There
is
no
definition
of
chemical
in
are
generally
what
accepted
makes
industry.
order.
both
The
the
up
various
government agencies have formu¬
lated broad definitions for their
own
particular
classifications
a
at
is applied to
which
are
de¬
substances
rived
from
basic
materials
involving
by
changes
in
composition and which do not fall
other
well
classifications.
products
defined
Fn
addition
which
we
and which
cals,
are
raw
industrial
call
for
to
the
chemi¬
the
most
materials for the chemi¬
reach
the
ultimate
significant
volume,
Continued
U. S. Bureau of Labor Price Indices
Aug. 1939
Commodities
75
we
have
and
semi-finished
re¬
in
consumer
fin-
on
page
28
setting prices.
ders"
system
=
Va
next
stocks,
tends
operating
the
to
re¬
and
costs
in¬
efficiency of the
For that
com¬
reason
we
Odd
lot transactions
cluded
in
figures
the
of
but
Exchange
thereto.
New
are
volume
York
in
However,
not in¬
are
published
the
Stock
addition
the
odd
lot
dealers' transactions in round
lots,
which
are
necessary
to
reduce
long
short
or
cluded
The
to
in
18%
figures.
lots
traded
varies
from
to 25%.
We
chase]-
feel
that
of
mentally
an
the
odd
an
record,
average pur¬
lot is funda¬
investor.
As
a
matter
housewives, mechanics
others with limited funds for
investment
in
in¬
are
volume
percentage of odd lot shares
round
of
positions,
such
U.
the
S.
well
are
industry.
small
investors'
predominance
of
represented
Indication
role
is
stockholders, in
largest corporations, who
than
ment
100
shares.
program
of
the
An
involving
own
invest¬
limited
funds for the purchase of small
lots of stock in sound
corporations
offers an excellent means for the
growth of financial
geared to
the
ment of the
independence
industrial
develop¬
country.
to
sell.
orders"
-cuted
All
at
ferential
Va to buy, less
customer
set
price)
that price
included.
mission broker
of
one
service
exe-
When
a
com¬
accepts an odd lot
the odd
these
"limit
are
better, dif¬
or
order, he then becomes
of
or¬
the price of
sale (the "ef¬
plus
(i.e.
part
no
at
lot
round
has
a
customer
lot dealers.
orders,
the
dealer has
two
brokers
To
odd
lot
Dynamic
Dialogue
Economy,
The
—
A
in
Play Form—Harold
G. Moulton, The Brookings Insti¬
tution, 722 Jackson Place, N. W.
each post.
at
In
or
addition
moie
the
to
maintained at each
itating
the
associate
execution
of
odd
lot
orders, eadh odd lot dealer main¬
tains
up
an
for
extensive back-office set¬
comparing,
accounts
clearing
with
Washington,
Operating
services
post for facil¬
its
and
broker
Price
D.
Variety
Esther
M.
C.—Cloth—$2.
Results
of
Stores
Limited
in
Love—Division
1949—
of
Re¬
search, Graduate School of Busi¬
ness
Administration,
Harvard
University, Soldiers Field, Boston
63, Mass.—Paper—$2.
100)
Dec. 1947
Dec. 1949
163
151
84
124
115
78
*56
150
'
a
.d^ler firms
All "market
executed
are
settling
(1926
lot
The odd lot dealer
cal
industry and for other indus¬
tries as well, and which rarely
by
Doremus.
fective sale")
generally
we
term
errors
borne
operating on the NewYork Stock Exchange are Carlisle
&
Jacquelin
and
DeCoppet &
in
those
processes
odd
as
the
is
and
present
the
understand
The
pur¬
feel that the odd lot dealer
system
of the New York Stock
Exchange
is more preferable than
the spe¬
cialist odd lot
trading in vogue on
other exchanges.
apparent,
dealer
the
mission firms.
less
"differential"; of Ys point
purposes, but the
not
compar¬
are
able.
part
lect
ultimate
This adjustment
correction of
practically all
claims, compare, clear
and
crease
our
Exchange. For the risk of
buying or selling any odd lot at any
time, the odd lot dealer firms col¬
share.
duce
prevailing
became
into being on the New York
came
the
costly
transfer
and
obviously
was
purchases and
full
rather
and
stock
established
fraction thereof.
any
of
this
readiness of
the
odd lot
dealer to trade in all listed
stocks,
absorb the cost of
mis¬
a
big things, odd lots
terprise system.
Odd
lots are
lot"
is
themselves
they permit the little
vest
and
or
errors
the
on
bar¬
a
lot
Stock
various
extent
made
were
odd
an
started
was
in
The
the counter
over
time
It is
Scott
Stuart
time
basis.
ter
the
sale.
seller.
is
transactions
entirely
and
lot
of
quotations,
the odd lot dealer firm.
born.
odd-lo t
customers
also that
of claims and
how
was
prices
cus¬
information
obtain
customer
the 100-share
unit
broker
chaser
and
is
broker
this
can
round
an
Errors and claims
are
adjusted to the satisfaction,
where possible, of both the broker
quantities of
shares
sale
each
like
on
the
dealer
center
couid
bid
requested.
or
their
of
From
center,
the
last
stand¬
a
transferring securi¬
where required
elaborate
licker service, electrical
quotation
board and an intricute
system of
direct telephone lines for the con¬
adopt
so,
increased."
a
E.
quantity transac¬
They also maintain
it necessary to
a
our
ties
venience
of
"In the du Pont
S.
Stock
tomers.
made
round
follows:
as
quantity.
any
trad-
also
prices
those
of
This
g.
For
of du Pont, has
expressed
company's policy with regard
York
customers and
New
was
exchanges
to
the
on
Exchange
call
his
considerable
Commodities Other than
Farm Products
of
prices
products and
widened,
.
GENEVA, SWITZERLAND
growth
some extent, in
postwar period, the normal
downtrend in
prices was inter¬
rupted by inflation. Nevertheless,
any
Wholesale
Chemicals
open up
chemicals
the
toward
industry. To
industry stimulates
by improving its products and
All
lower
the
into
buying
or
speaking,
consumer
Exchange Bldg.
NEW YORK 4, N. Y.
CHICAGO
Generally
Exchange
Exchange,
Board
distribution,
opportunity to stimulate
Stock
for
contribute
"Chemicals"
fre¬
quently termed a "growth" indus¬
try. That is, it has the ability to
Established
markets
new
using
increasing
chemicals, in¬
termediates, and specialty chem¬
icals, and are also using many
amounts
of
other
many
industries will directly affect the
Members:
Midwest Stock
supplements
industry. Textiles,
rubber, glass, ex¬
rayon,
chemical
oreland
form
prices.( The lower prices
and
pro¬
wholly without chemicals.
plosives,
Request
on
the
by
dent
serves
all other industries. New
products
in common use
paint,
Oleo
in
Crawford
Industry
on
reducing
portion of the cost saving
is passed on to cus¬
tomers
chemical
Chemical
emphasis
generally
other materials.
sell
industries
Grow
much
and
(Anti-freezes
re¬
done
was
Stock
"seventies,"
pair them off.
processes and
position
cattle
Foods
A
same thing in bulk. Other
companies have gone still further
chemical
Shedd-Bartush
costs.
a
chemicals,
chemicals, fine
place
improving
general
basic
today
*An
own
companies
like to call
intermediate
is
in
its
showing
are
growth.
early
changed to
of
In discussing the nature of the
industry we cannot neglect prices.
The price policy of the
industry
is an important consideration. As
I just mentioned chemical com¬
and
panies
chemical
—those that I
chemical
is
re¬
growth
are
fertilizers
markable
basic
intermediates
industry
and
specialty
them further into plastics,
insecticides, etc. Thus we see that
pro¬
soda
heavy
by the
statistics
of
historical
growing faster
than others. Such specialty prod¬
ucts as plastics, detergents (com¬
ponents of Tide, Fab, Glim, etc.),
synthetic
fibers,
rayon,
nylon,
orlon, dynel, fiber V), insecticides,
process
deposits in the earth. It is mined
derived.
Other
bore" you
small
or
exchanges.
the
days
of Industry
set
the
of odd-lot
the floor of the New
on
Before
trading
industry. The record is clear.
the
Some
the
as
long
a
Jacquelin, Members N. Y.
outlines rise
with
expenditures
going" to
&
Exchange. Points
out odd-lot
business, because of risk of buying and selling is
operated on floor by only two member firms, and contends this
is preferable to specialist odd-lot
trading in vogue on other
re¬
It has grown. It undoubtedly will
continue to grow. Certain parts of
say,
basic
product.
such
not
am
this
companies, start at the
beginning and go only a short way
in producing basic chemicals and
creams
plentiful
to
a
as
tions
chemical
high growth.
with
chemical
products.
brush
we
it do?
contact
chemical
morning
shower
What does
daily
I
manufac¬
to
necessary
chemicals
of
is
far
as
companies
Growth
through all
go
specialty
a
the
kind
and
those
cording
they all do not start with
raw
of
What
That
S.
General
research
basic
used-'by the
textile indus¬
and
integrated.
fully
leading
U.
Scott
York
chemical companies are
Not all
chemical
industry.
is
rule,
show
large quantities.
the
nature
the
and
paper,
discuss
Edmund R. Swanberg
of
the
goes.
liberal
rain¬
Caustic
etc.
Mr.
new pro¬
companies spend anywhere from
2% to 5% of sales for research. As
vinyl plastics
covers,
one
tries in
of
shower curtains,
our
seat
soda
the
industry;
manufacture
the
in
search
a
In order to acquaint you
Partner, Carlisle
and new markets necessary
growth. The industry is a
for
Exchange
of
means
products,
new
the
on
By STUART SCOTT*
cesses,
industry.
available for investment.
men
industry's
Thursday, August 17, 1950
.
.
New York Stock
present
products.
Mr.
Trading
.
*A
sixth
lecture
in
a
given
series
of
on
17
July 21, 1950, the
on
the
New
Profitable
York
Operation
Through
Securities
Markets and their Operations
sponsored jointly by the New York Secu¬
rities
Industry and the University of
Vermont's
Department of Commerce &
Economics.
Accounting—New York State De¬
partment
N.
of
Commerce,
Y.—Paper—No charge.
Albany,
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
.
.
(625)
Electric Utilities Can
(F
Steel Production
The
Cope With Any
Emergency: Sutton
Electric Output
Carloadings
Retail Trade
State of Trade
Commodity Price Index
Food
Price
Index
President of
Auto Production
and
Industry
Business Failures
Total industrial
tually
steady
weeks
sustained.
production for the country at large held vir¬
with high level output of recent
comparison with the similar week in 1949,
total output continued to reflect noticeable evidence of expansion.
In
the
past
week
In
Edison Electric
tells
stitute
J
National
In
went
due
it
when
to
recent
a
figure.
vious,
semi-annual
readjustment
L.
Electrical energy distributed
industry
nation again
establish in the past week a
industry at -3,247,464,000 kwh.
increase of 14,965 cars or
by the electric light and power
W.
be
Sutton
V.
plenty
basis
last
week
continued
to
the
for
give
sales
on
evidence of im¬
a country-wide
ended
week
Aug. 5, 1950, showing a gain of 29%.
In the preceding week, however, such sales registered an advance
of 42% and can in part be attributed to abnormal purchases stem¬
ming from the Korean crisis and its possible effects on our
domestic
*
terrific
A
markets
jam
in
*
inquiry
and. apprehensive
impact of national
of a
*
limitations
ernment
which
prevails this week in the steel
steadily worsening supply under
Their
little
consumers
are press¬
procurement efforts,
Inquiries are being
frantic
success.
rejected or tabled wholesale by producers in face of uncertainties
regards military needs and distribution controls.
Until emer¬
demands are better known, and a system of allocations is
gency
worked out and approved by Washington, it looks as though the
steelmakers will move slowly in accepting new business, states
"Steel" magazine, national metalworking authority.
imposed
are
tion
of
now
under
construction
the
This
program
way."
electric industry
total generating capa¬
the
a
G7]/2 million kilowatts,
which is nearly doube what it nad
at the beginning of 1941. The cur¬
rent
add
construction program
utility
will
ot
waits
12 million kilo-
another
the end
capacity
generating
electricity
country's
include
resources
kilowatts
of
by
the
In addition,
1952.
of
production
million
13 %
capacity
major industrial plants.
in
generating
ahead.
generating equipment is less than
10 years old, with all the advan¬
tages of economy of operation and
will take only a small percentage of total steel output. Some
military business is being booked, but it is relatively small. Flood
of military and related orders is not expected until late in year at
earliest.
On the face of this, it would appear steel supply will be
adequate for all normal civilian needs in the months immediately
Capacity steel mill operations indefinitely into the future are
assured.
with
The mills
are pouring steel in record-breaking volume
production capacity largest in history, in excess of
ingot
Additional capacity is being installed
and by the end of 1952 the industry is expected to be in position to
100,000,000 tons annually.
produce in
of 105,000,000 tons
excess
the
strong
most
part
undertone prevails in the markets, but prices for
are unchanged.
Isolated advances, this trade au¬
*
breakdown
possessed
In 1940 only 8 million
by
in the
enterprise system
set
the
in
success
this
country of the
free
be gleaned from the current report of the
Commerce, which discloses the fact
gross national product, the total of all goods and services,
new high record in the second quarter of 1950.
The depart¬
added, that it reached an annual rate of $270,000,000,000
United
that
of
may
States Department of
our
a
ment
during the period,
$7,000,000,000 above the first quarter's rate
surpassed the previous record of $267,000,000,000 for the final
and
or
electric
reservoir
*
"This
reserves
year
9 million kilowatts
lion
horsepower).
necessary,
The
of Capacity
100.1%
of
the steel trade.
pliers'
doorsteps
Purchasing agents have
that
it
will
take
so
clogged their sup¬
time
some
the orders they are trying to place.
Extended industrial forward buying is due
to
sort
out
and
evaluate
through
Since
the
Korean
war,
to increased order
industrial pur¬
This applies to nearly
leadtime
chasing has been stepped up 30 to 60 days.
industries and materials.
on
all types of
This week all steel
—the
consumers
hopeful and the fearful.
receive the steel they need and
But
all
order
are
goes
are
to
be divided into two grouos
can
Some
some
fair
distribution
of
hopeful that they will
are
are
right in there battling for
insure
fearful that they won't.
every
their
ton they can get.
In
steel people
products
struggling mightily to screen and police
on their books, states this trade authority.
They have given
every
order
available
the
end
government
contract, the
use
to
up
which
order they
name
ask
the
for
steel
the
would
contract
be
put.
number;
If it is a
if a sub¬
of the prime contractor and contract number.
Continued
on
page
25
,
in the international cli¬
transpired in this interval
has
"THEN"
tion at San Francisco. April 26, 1945:
"The
in
at
another
least
bil¬
50
year.
a
peace
a
would
year
available
presently
the resources
we
enable
us
would
and
Conference.
double
our
It
...
a
great importance to the
upon to consider the
called
is
of setting up an organization to
and security of nations after the war.
how
seen
ference.
is
great
the
responsibility
present
energy
the establishment
of
are
resting
upon
this
international organization of secu¬
them and their efforts in their
common cause of the creation of such
a postwar organization of
peace and security of nations will be readily done by the Soviet
Government. We will fully cooperate in the solution of this great
problem with all the other governments genuinely devoted to this
noble cause.
We are confident that this historic aim will
be
Whatever
rity.
a
stiong
depend
may
upon
peace-loving nations in spite of all
achievement.
must be admitted that the prese: ce in this coalition of
such a
country as the Soviet Union where relations between
great and small nations are based on equality and true democracy
is of extremely great importance. On the other hand, it is impos¬
sible to overrate the active part played in this coalition by the
United States of America which formerly remained aloof from
achieved
by
joint effort
of
the obstacles in the way of its
.
.
"It
Organization and which is now
and enormous international1
prestige.. This coalition would have been impossible without
Britain which holds an important place i
the international asso¬
ciation of democratic countries. China in Asia (sic) and France
the
problems of an International
devoting
in
this
to
Europe are
as a
its initiative
cause
this coalition
the great nations which strengthen
powerful world factor in the postwar period as well. . . ."
"This organization must have the necessary means for military
protection of the security of nations. Only if conditions are created
such as will guarantee that no violation shall go unpunished and
the adoption of necessary punitive measures is not too late will
organization of security be able to discharge its responsibility,
cause of peace.
Thus the point at issue is the creation of
the
for the
an
of
nations
and security
peaceful
effective organization to protect the general peace
for
which
all
sincere
the
partisans
development of nations have long been striving.
.
."
.
*
*
*
the
of
"NOW"
Five years
later the tune played here at the Security
Soviet representative
President, runs as follows:
table
by
"The
the
prostituting
Security Council faces a choice:
his
Either it will firmly
else it will crawl, as it has done, deeper .
wallowing in the quagmire o
warfare. It is being ;
Continued on page 26
take the path of peace or
and
deeper,
elec¬
connection, however, Mr.
that
observed
the
reservoirs of unemployed
idle
industrial
isted
in
capacity
1941
are
not
great
We
to announce that
ex¬
Mr. Thomas E. Kenney
available
men and supplies
for defense work must be diverted
This
pleased
Instead,
today.
from
are
and the
that
non-e s s e n
t i
is
now
1 industries.
a
associated with
us
in
our
shift will tend to reduce the
demand
for
power
for such
pur¬
Collateral Loan department
poses.
Henry W. Day Opens
KENNEBUNK,
W.
from
offices
cher Street. He
Garvin, Bantel Cd Co.
Maine —Henry
Day is conducting
business
was
a
at
securities
62
Members
New York Stock
120 BROADWAY, NEW
Bond and Goodwin, Inc. and A. C.
Allyn
Maine.
&
Co., ^The.,
.
„
in
■
Exchange
New York Curb Exchange
Flet¬
formerly with
Portland,
Council
position as
tricity in major industries."
In this
Con¬
champion of
sincere and firm
nearly
of
use
a
have,
now
to
protect the general
From this it can be
..."
"The Soviet Government
than 100 bil¬
more
kilowatthours
from
Soviet Government attaches
International
shift
third
and
kilowatthours
lion
that
hope that machinery to handle voluntary
allocations will be operating soon.
And most of them are taking
it upon themselves to expedite deliveries to customers holding
government orders.
They are asking customers to specify on the
order
second
operation of industry would make
Sutton
backlogs of manufacturers and increased order backlogs of their
suppliers.
if
can,
represent an increase of one-third
of
accepted
change
which
of operating capacity
"This total of
hysterical buying following the outbreak
of war have been followed by a flood of orders that have just
about jammed metalworking plants of all types, "The Iron Age,"
national metalworking weekly, reports in its current summary
waves
(12 mil¬
They
generate more than 50
a
year.
A
greater rise
*
Operations Advance to
first
body with
many
kilowatthours
billion
lion
Steel
surplus
ready
to be
possible needs,"
any
added.
of
is
power
for
tapped
quarter of 1948.
*
modern
preceding 10 years.
vast
total
evidence
Further
will contrast
Excerpts from address of V. M. Molotov, People's Commissar
for Foreign Affairs of the Union of Soviet Socialist Republics;
and Chairman of the Soviet Delegation, at the first plenary ses-)
sion of the United Nations Conference on International Organiza- ■,
kilowatts had been installed with¬
*
*
industry's
machinery.
he
*
the
relative freedom from mechanical
a year.
thority adds, continue to be made.
of
kilowatts
lion
"A
A
Wilfred May
of
year
remainder of the
emergency requirements over the
this dispatch
question
Mr. Sutton told Mr.
year,
Symington,
Nearly four times as much new
generating equipment is on the
power
lh.es today, as there was
in 1940, Mr. Sutton noted.
As of
the present, he explained, 30 mil¬
National
of just
nature
recurring dynamism toward war.
,.
.
A.
would prevent the comple¬
bility
requirements,
emergency
the mills for tonnage.
however, are meeting with
ing
as
said, in his letter to the NSRB
will have
economy.
lieu thereof
of
to meet
power
Chairman, provided tnat "no gov¬
volume
the
There will
the needs of the country, Mr. Sut¬
business with department store
within
fall
perhaps performs the serious function of dem¬
onstrating
the
world's
seemingly
ever-
Re¬
ton
Trade
so
mate
Board.
to
proved
by
the
blast.
tremendous
the
curity
of
(but by no means all) of us who
attended the Organization's charter-creation in
San Francisco in 1945. Thus highlighting the
by
Se¬
sources
L.
tory.
In
Sym¬
of
man
1.8% above the preceding week.
one-week closing for inven¬
another
re¬
National
a
merely would
ington., Chair¬
■
Willys-Overland after
comment
"Maliking-up"
the pledges which were so hopefully
output, likewise, advanced in the week with the increase
attributed to gains by Plymouth, Ford and Buick, plus the return
of
the
on
Security Council by its filibustering President
Insti¬
Stuart
Auto
work
editorial
Hence
waves.
observer
the present gomtos-on of this august
has
ported to
field, loading of revenue freight for the
July 29, 1950, by American railroads continued to
higher trend with total cars loaded amounting to 844,849,
a
air
this
for
tute,
"upside
of
Electric
ended
show
barrages
the Edison
the transportation
In
the
get
President of
capacity
topped its previous high point to
new historical high record for the
the
of
Now."
"Then and
—
YORK—The
emanating from Jacob A. Malik, the Soviet
representative here, in his grand effort to destroy the United
Nations surely are being fully discussed in the press and over
II,
Sutton,
V.
NEW
sophistries
World War
Taking the revised percentage figure for the week pre¬
rise of 0.4 point is reflected.
a
week
the total
in
SUCCESS,
was
ready
industry last week steei ingot production under¬
one-point drop in capacity to just under 100%.
This was
a
to
down"
defense
steel
the
The United Nations
LAKE
industry is in even
shape to meet the present
keeping with the higher production trend, another slight
By A. WILFRED MAY
near-
The electric
emergency than
the
nation
began
..
In¬
ing double that of 1941.
better
Observations.
Resources
Board generating capacity is
drop in total claims for unemployment insurance was reported.
an
5
August is, 1950
YORK 5
B A relay
7-6440
(626)
j
The Commercial and Financial Chronicle
right
Our Policy Toward Russia
By
to
spokesman, asserting nation faces
half-century, calls for firm and drastic policy
against Communist aggression. Says Russia should be warned
The statesmen
tinued.
and
keep domestic economy
and favors higher and more
ration
well
the
$4 billion reduction
as
minutes
few
next
should like to talk to you earnest¬
can
world
We
with
to¬
our
this
own
executive
country
during those
in
grave
made
danger.
It
danger
today
than
at
in
the
last
world
an
tary
sessed
by
Hitler
either
now
It
is
unfriendly
an
edly made the decision which
North
Korean
southward
friendly
national
It
an
makes
dominated
and that there is
For
five
that
years
vicious
ether
peoples
more
destructive
and
how
more
ity,
more
curity and
lasting
men,
dependence,
their
worship,
more
tating to their standard
♦Text
ever
of
the
network
moment
to
disap¬
the familiar story
or
how
move
we
brighter| prospect of
late,
but
too
not
late.
I
States
We
can
and
will
win
can
and
will
win
of all
mankind.
But to
must
recognize
the
then
and
we
facts
firm
deter¬
great free
our
capable.
are
We must
of
so
that
unshakable
mination of which
people
in¬
basic
with
move
do
situation
calls
for
quality
leadership in Congress such as
ordinarily is not required.
devas¬
living,
We should all observe that Con¬
by Mr. Stassen
on
Aug. 15, 1950.
gress
as
whole
a
has
been
more
our
the
people
are
icies to
and
to
Its
be
clude
the
that
tion
ruthless
have
i
Right
rulers
their grim fixed
as
con¬
in
domina¬
objective;
that they seek to realize that ob¬
jective through bringing all other
nations
nist
under
national
dictatorships,
these
dictators
Commu¬
with
in
each
turn
of
subordi¬
Moscow;
and
program
dictatorship in
that they have a
plan to carry out
and
that
objective.
No
that
one
is
their
certainly the actions of the Polit¬
buro
the
in
these last
five years,
and
writings of Stalin and Lenin,
their
and
excessive
point
program,
actions
reveal
years
and
peace
armament
unmistakably in
Certainly
also,
direction.
their
in
these
last
cannot base
icy
on any
five
sincere desire for
no
Therefore,
progress.
we
American pol¬
our
though, wed like
talk about
to
We may he
sticking our necks out, of
honest faith in our 50,000 miles of
would
further
that
appear
their program for
pushing toward
this objective may employ one or
more of the
following four sets of
action:
First,
the
nations
But we've got
conquering of other
by one, moving first
on the
weakest, and using meth¬
ods of infiltration, of civil war, of
external
enough belief in
just
us
a
you
But
inactive
some
We don't
j If
our perseverance
once—to
care
call
us
first,
we
and
pressure,
of
armed
the
world,
States,
en
including
the
United
in minor wars at distant
points to tire and weak¬
bleed
and
us
Third,
threats
an
of
stretch the
as
to
white.
us
effort
by
aggression
American
cause
an
.
.
.
how
can
it
.
.
.
to
think
so
Clearly
can
save
>
should in¬
actions
the
we
With
Merrill Lynch, Pierce, Fenner & Beane
one
and
the
cannot
the
at
the
to
time with the
a
falling first.
willingness to
callous
nations
dictatorship
nation
any
unless
throws
its
United
But
of
policies, the
the
can
power,
if,
Commu¬
overrun
which
on
the
United
become
was
asking
for
an indefinable agency supposed
the overall plans for the "next"
war,
mobilization
as
trols, rationing,
politicians' answer
as
"Stew"
reason
Board,
make
caught
the
was
Secretary of the Air Force, to
the
National
Security Re¬
of
to
industry,
the
at
were
we
of
slow
go
on
cry
Pearl
price
that
con¬
controls,
wage
again
never
Harbor.
This
time
home
and
front.
the
Particularly,
automobile
would
men—know
businessmen—the
steel
exactly
on,
sufficient.
NSRB," just
crats
the
balance.
followingv Korea,
directs
an
attack
Continued
they gave 'the UN, with its thousands of bureau¬
as
millions
and
to the
swer
Well,
of
dollars
of
people's longing for
the
Washington
annual
expenditures,
the
as
an¬
peace.
correspondents
being
what
they
are,
the NSRB came to have a high standing as an
agency which in
the event UN failed to preserve the
peace, would insure us a pain¬
less and quick victory.
It was to mobilize our
might
with which the
ease
looking
Truman,
swings
man
the
over
with
the
the flying trapeze.
on
alphabetical
many
which he could appoint friends, didn't have
the NSRB's publicity build-up and sought
agencies
to
full appreciation of
a
to name a crony to
chairmanship, Mon Wallgren. The Senate, seeking to keep
NSRB on a high plane, said, of course, Mon was not a man for
this high
level, though unquestionably deserving as a lameduck Senator, of some lesser job.
Mon was therefore appointed
its
the
to
Federal Power Commission.
In the
only
meantime, the NSRB chairmanship went wanting until
few weeks before Korea when as I believe, Truman named
a
"Stew" Symington
from
with
potentials
making
in
view to getting him out of his troubleAir Force.
a
the
Korea broke there
out
was
Congress for the NSRB to
plans it had been working
outcry from the people and
an
forward
come
all these
on
with
mittees
with
the
overall
Having been with¬
But "Stew" responded
years.
Chairman for months it had
a
to the emergency
I
told
no plans.
and finally appeared before Congressional
the
same
statements,
almost
verbatim,
com¬
which
the
made.
friend
my
on
of
page
this
the "closer"
was
man
and
man
gave
to
it
as
opinion
my
I
had
which
been
the railroads
Steel-
is
essential
the
under
to
the
effort."
war
impression that
my
friend represented
people who did business with the railroads.
or
Anyway, I said to him:
"I think you are
be
to
Truman
Korean
awful
for
has
already
his
mistake if
a
spending for
asked
for
you
some
think there is going
production.
war
$16
billion
in
Although
additional
military, I don't think he expects to spend it. If the
clears up within a reasonable
mess
agitation
all
making
tremendous
more
bad
this
spend
to
not
time, there will be
money,
and
I
think
an
Truman
points, will be sympathetic to that agitation."
My friend got red in the face and demanded to know whether
Administration
was
not
going
to
spend
Thinking of the chemicals he wanted to
another
to
for
sell
an
and
spending bonanza it made him sick in
war
all-out
war.
contemplating
the
stomach
suggest that it might not come.
I
cite this
merely
in times such
an
all-out
as
war
as
an
example of the many forces moving
these, forces which
and
are
jubilantly contemplating
with which the politicians have to deal.
The darndest politics I have ever seen in all my life, has been
that of the
dent.
Republicans to force all-out controls
Their theory,
and make the
the
realize
the
the
30
that
the President.
"Well, I've got to know," he said, "because my people have
chemical
al¬
they
States
through
Nations, into the
Kremlin
Truman
be
ripest
border,
in¬
my
Department, the Treasury, and
with their hundreds of thousands of employees, were not
The people wanted to know what was
being done to
prevent another Pearl Harbor and the politicians said "Why, the
so
the
permit
world
terizes the Kremlin's
nist
was
what to da.
Al¬
though we have more than 2,000,000 people on the Federal
pay¬
roll and a Congress and an executive
establishment, we still had
to have this additional agency to make overall
plans, a well and
highly paid staffed organization you can rest assured. The War
Department, the Navy Department, the Department of Commerce,
and
spend human lives which charac¬
most
we
positive
nations of
weakest
Trading Department
STREET, NEW YORK 5, N. Y.
of these four alter¬
In addition
some
more
to have maps,
funds for the
analysis is correct, then
America must develop policies to
satellite
Offices in 98 Cities
on
men
a
this
clude
I
atomic bomb shelters and devices by which
every man and woman, not responding
to a key number for
active service, would know exactly where to
go and what to do
economic crash and
ism.
picked off
we
be
we
were
over
economy
programs of our own.
seller
before, just try us! v
70 PINE
would
President had
direct surprise attack
United States as the
one
and
repeated
you try
or
closely it's held.
find
a
when
Chairman
such
the
was
we
chaos and weakness in this center
If
Bargeron
When
Second, the continuous embroil¬
ing of the major free nations of
other
how small it is
said
buyer
issue.
market exists, we think we
time, trouble, and expense.
as
and experience to ask that
time you want a
next
It
invasion.
natives.
enough
private wire and 100 offices
for
etc.
one
meet any
inactive issues.
course.
Carlisle
other concept of Krem¬
lin policy.
It
that
Washington,
the State Department, the Interior
conclusively prove
objective. But
can
that
northland,
by sea
through
submarines, and by subversion,
sabotage and Communist terror¬
too
now,
be
Soviet
to
world
time
shifted from
was
its pol¬
is
frankly
of
closer
48-group air force, "Stew" who
has
had
unusually good press agents,
was
stirring up in Congress behind Truman's back,
agitation for a 70-group air force.
It is my
the only safe basis
the
Kremlin
a
definite belief that this
of
him
the
with the Washington correspondents'
boy, "Stew," because he construed
troublemaker.
a
sources
policy
told
backbiting
be
so-called
a
based?
future
our
as
At
the
difficult for
anybody to find satisfactory markets in active
securities. We've done a fair amount
of business in that field, our¬
selves.
not
him
strongest opposing power, by land
through Alaska, by air through
Harder!
are
annoyed
country
the press
are
Domination Aim
I
the
would
because, for one thing, it
impression Truman had long since
expect of that
On what
First of all,
for
in
fluential
to
World
really big shot, the real "coordinator"
program.
Steelman
leadership.
we
leadership?
Fourth,
upon
the
o
war
thought
cir¬
of the free world.
Inactive Issues
the
such
the
under
which
increasing
What
a
of
in
understandable.
that
difficult
especially realize that
Truman
legislative
circumstances,
are
submit
faces,
se¬
expand the freedom and progress
address
an
CBS
of
the
through not only to preserve our
safety and freedom but to
the
and
Nation's
our
anger
on
a
liber¬
repressive
more
of the
own
nations
their
one
completely confident that the
United
and
to
do
peace.
is
It
am
degrading to their digcrushing
I
to
got into this perilous
Our thoughts must be
courage
ties,
be
the
rushing up to me over the last week¬
whether I thought "Stew"
Symington or
to be the
was
would do well to look to Congress
for
we
concentrated
toward
their
And
forward from here to national
unfriendly
other
to
either
through.
imperialism
the
with
came
wanted to know
Steelrrian
glamour
normal
I
that
in
position.
has been practicing a ruth¬
power
less,
the
un¬
God.
no
by
prelude
action.
pointment upon
of
meant
other
by
believe
I
that
Tonight is not
active
is
man
essential
an
incompetent in
dwell
is
that
use
lifetime.
a
right,
but
I
Jim
executive
nate to the central
that
appraisal
five years to
most
agents
under
follows
has
people
history v/ill adjudge
country's administration in
these
sent
an
correct
is
our
throughout
an
unfriendly
leadership which
ideology that might
world.
power
is
It
which
power
column
be
with reluctance
believe
aggressors
through
Republic of Korea.
to
American
strong words,
behind its Kremlin walls undoubt¬
Hashing
our coun¬
pink seeds
red whirlwind.
wise
which
power
In
people of their executive leader¬
Albania, North Korea and China.
the
the
a
ship
in
...
opposi¬
weakened
many
a
.
fifth
so
that
which
power
Poland, East¬
ern
Germany,
Czechoslovakia,
Hungary,
Rumania,
Bulgaria,
the
sown
reap
the
of all of the peoples of
world
is
sadly
such
unfriendly
an
one-third
It
foreign
have
that
in five years of cold war has es¬
tablished
its
dictatorships over
the
this
preparedness.
must
Kaiser.
It is
unbelievably
They
and neglect¬
inefficient.
The administration of
pos-
or
of
own
try has
mili¬
was
major
administration
wasteful
and
our
strength
than
an
which
Thus they have added to the
tion
un¬
far
greater
under
tragic
almost
and
been
ful.
pow¬
with
er
of
country's
strength
the
against
end and
of
tendency
a
the
of
friend of mine
members
power
five years has
same
been
have
face
friendly
our
confused
fifty years,
We
across
country
series
a
have
any
time
Harold E. Stassen
for
side
A
be¬
judgment;
time
same
the
cumstances
unfriendly
By CARLISLE BARGERON
nor¬
a
branch.
But
mistakes in policy.
These men with responsibilities
is
greater
the
at
take
branch
Administration
Our
in
to
few
a
questionable
tendencies
face
Washington
Ahead
of the News
they
necessarily
slowly and
more
includes
very
and
Tragic Mistakes in Policy
day.
is
of
history.
people in
the
always
nonessential spending.
ly and straight from the shoulder
aboiit the position of the Ameri¬
somewhat
moves
on
taxes and limited controls,
on
which
government,
than any other imperialism in all
I
there and
are
beginning to respond.
a democracy there
is
mal tendency to
criticize, even
little
the
legislative branch
pro¬
China by U. N.
sound under full war prepa¬
we
as
In
to
come
incompetent, and advocates inquiry
Urges
For
strictly accountable, and Congress should
are
Moscow if aggressive actions are con¬
Criticizes Administration's Asiatic policy as confused
will
From
exercise
increasing leadership.
The situation requires statesman¬
ship of a high order in Congress.
Prominent Republican party
war
than
years
Therefore, public opinion and the
should encourage Congress
greatest danger of
claim
five
press
President, University of Pennsylvania
she will be held
last
has the executive Administration.
E. STASSEN*
HAROLD
these
Thursday, August 17, 1950
...
until
people
seem at
of course, is that they will
people
recently
who
sore
was
were
at Truman.
that it
forcing
last to have wakened
was
these
up.
upon
the Presi¬
prove
unpopular
What they apparently didn't
being made
controls.
very
The
patent to
Republicans
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
..
(627)
Housing Credit
Is Hot
Inflationary,
Says George Johnson
UNDER THE PROVISIONS OF THE ACTS OF CONGRESS
President of Dime Savings Bank
THEREFROM ARE,
of
Brooklyn contends, if mort¬
credit policies are kept
within proper limits, home buying
is merely form of systematic sav¬
NOW
IN
FORCE, THE BONDS AND INCOME
IN THE OPINION OF COUNSEL, EXEMPT FROM
FEDERAL
INCOME
AND
STATE
TAXATION
gage
$25,000,000
ings and thus does not contribute
toward inflation.
Puerto Rico Water Resources
There is far less inllation in the
purchase
other
eral
homes
of
article
than
in
any
credit when
applied to home
Electric Revenue Bonds
buying is def¬
initely not in¬
Dated
flation.
Such
the
observa¬
Aug.
San
on
12
as
shown below
Coupon bonds in denomination of $1,000, registerable as to principal
and interest. Fully registered bonds may be reconverted into coupon bonds.
Juan Branch, San Juan, Puerto Rico.
only
by
George
Due
July 1, 1950
Principal and semi-annual interest, January 1 and July 1, payable at the Head Office of The National City Bank of New York,
New York City, or, at the option of the holder or registered owner, at the office of The National City Bank of New York,
were
tions made
Authority
commodity. Lib¬
or
to both principal
or as
C.
THE NATIONAL CITY BANK
Johnson,
OF NEW YORK
TrusUe
President of
The
Dime
Savings
f
o
Eligible for deposit by banks to secure public funds and by insurance companies to
qualify them to do business in Puerto Rico, as required by law*
Bank
Brooklyn,
which
is
nancing
fi¬
more
than
o
fourth
n
The bonds
e-
of
subject to redemption prior to their respective maturities, upon not less than 30 days' prior published
on any date on or after July 1, 1953, or in part, by lot, in inverse order of their maturities from
in the Sinking Fund, on any interest payment date not earlier than July 1, 1955, at the following prices plus
George C. Johnson
the houses be¬
moneys
accrued interest:
built
on
Long Island.
ing
"Inflation
is
that
104%
of the economy in which a
sharp increase takes place in the
quantity of money or credit, rela¬
slate
tive
to
the
amount
of
and
available," Mr. Johnson
explained.
"In most cases infla¬
bid
prices
up
from
that
would
be
extending credit for home buy¬
ing. As a result, it has become a
form
of
systematized
saving.
Properties are appraised
realis¬
tically and mortgage loans are
made
strictly on that appraisal
the
on
A
borrowers'
home
mitted,
let
buyer
ability
is
not
to
per¬
alone
encouraged, to
buy something he cannot afford.
"Although today there is
siderable
of
amount
the form
of money
con¬
a
inflation
and
in
consumer
credit, this is not being reflected
in home purchases," the banker
said.
"It is true that home prices
have
more
than
doubled
234%
1/1/52
1.30%
2/4
7/1/52
1.30
75,000 23/4
23/4
1/1/53
1.50
23/4
7/1/53
1.50
2VA
1/1/54
1.65
75,000 2%
55,000
a
on
pay.
MATURITY
RATE
55,000
YIELD TO
INTEREST
TO
AMOUNT
MATURITY
MATURITY
RATE
MATURITY
23/4
7/1/54
1.65
80,000 23/4
100,000 23/4%
1/1/74 2.70%
7/1/74 2.70
7/1/63 2.35
100,000 23/4
75,000 23/4
1/1/64 2.40
105,000 23/4
1/1/75 2.70
75,000 23/4
7/1/64 2.40
105,000 23/4
7/1/75 2.70
1/1/65 2.45
105,000 iy4
1/1/76 2.75
7/1/65 2.45
110,000 23/4
7/1/76 2.75
-
55,000
23/4
1/1/55
1.80
80,000
2%
1/1/66 2.50
110,000 23/4
1/1/77 2.75
23/4
7/1/55
1.80
80,000
23/4
7/1/66 2.50
110,000 iy4
7/1/77 2.75
60,000
23/4
1/1/56
1.90
80,000 2%
1/1/67 2.55
1,355,000 23/4
1/1/78 2.75
60,000
23/4
7/1/56
1.90
85,000
2%
7/1/67 2.55
1,380,000 iy4
7/1/78 2.75
60,000
23/4 '
1/1/57
2.00
85,000 23/4
1/1/68 2.55
1,395,000 23/4
1/1/79 2.75
60,000
23/4
7/1/57
2.00
85,000 23/4
7/1/68 2.55
1,420,000 23/4
7/1/79 2.75
60,000
2/4
1/1/58
2.10
85,000 iy4
1/1/69 2.60
1,440,000 iy4
1/1/80 2.75
65,000
23/4
7/1/58
2.10
90,000
23/4
7/1/69 2.60
1,460,000 23/4
7/1/80 2.75
65,000
2%
1/1/59
2.15
90,000
iy4
1/1/70 2.60
1,480,000 2.80
1/1/81 2.80
65,000
-
2/4
7/1/59
2.15
90,000 23/4
7/1/70 2.60
1,505,000 2.80
7/1/81 2.80
1/1/71 2.65
1,525,000 2.80
1/1/82 2.80
7/1/71
2.65
1,550,000 2.80
7/1/82 2.80
iy4
65,000
23/4
1/1/60
2.20
95,000
65,000
2/4
7/1/60
2.20
95,000 iy4
70,000
23/4
1/1/61
2.25
95,000 iy4
1/1/72 2.65
1,570,000 2.80
1/1/83 2.80
70,000
2/4
7/1/61
2.25
95,000
iy4
7/1/72 2.65
1,595,000 2.80
7/1/83 2.80
70,000
2%
1/1/62
2.30
100,000 iy4
1/1/73 2.70
1,615,000 2.80
1/1/84 2.80
70,000
23/4
7/1/62
2.30
100,000 23/4
7/1/73 2.70
1,645,000 2.80
7/1/84 2.80
the
in
$
$ 70,000 23/4% 1/1/63 2.35%
60,000
of
institutions have kept a tight rein
and
YIELD
INTEREST
AMOUNT
MATURITY
55,000
inflation,"
Mr.
continued.
"But lending
Johnson
TO
YIELD
MATURITY
55,000
policies en¬
family to buy a $20,000
it can afford only a
house,
to July 1, 1956; 103% thereafter and on or prior to July 1, 1961; 102% thereafter
July 1, 1966; 101% thereafter and on or prior to July 1, 1971; and 100% thereafter.
50,000
when
$10,000
RATE
$50,000
"If mortgage credit
serious
to
AMOUNTS, INTEREST RATES, MATURITIES AND YIELDS
the bank President said.
a
prior
INTEREST
AMOUNT
This is not true in the purchase
of homes in the New York area,
home
or
prior
beyond
the true value of the article."
couraged
or
Puerto Rico
tion enables people to buy things
they do not need, and the greater
supply of money and credit causes
to
on
on
Payable solely from the revenues of the electric system of the Authority. Neither the credit of The People of
nor any of its
municipalities or other political subdivisions is pledged.
and
goous
services
buyers
are
notice, either in whole
all
(Plus accrued interest)
past ten years, but wages and sal¬
aries
have
advanced
even
as and if issued and delivered to us and
subject to the approval of all legal proceedings by Mitchell and Pershing, New York City.
These hovels
more
proportionately. Home prices have
had to reflect this generally high¬
level
er
wage
of
lumber,
other
because
cement,
house
components
offered for delivery when,
most
the
steel
are
all
di¬
and
are
Allen 8C
rectly related to the wages of the
Ira Haupt 8C Co.
Bear, Stearns 8£ Co.
Company
people who produce them.
"Prices
bid
of homes
by
up
not
are
buyers,"
being
Hirsch & Co.
concluded.
"There
is
plenty of
production to satisfy demand, and
much
competition
among
builders
pricewise to bring about
any
runaway
inflationary
ten¬
dency. Next month, all segments
the building industry will be
observing National Home Week,
of
this
will
afford
buying public an
see
exactly how
there
is
the
Wm. E. Pollock 8C Co.,
M. B. Vick &
(Special
to The
Brookfelt
bers
have
The
White-Phillips Company, Inc.
Andrews QC Wells, Inc.
Breed & Harrison, Inc.
111. —L.
and
South
the
Paul H. Davis & Co.
Ellis & Co.
(Incorporated)
Edward
J. B. Hanauer & Co.
Raffensperger, Hughes 8C Co.
Shelby Cullom Davis 8C Co.
Incorporated
Mildred K. Brook-
become
La
Republic Company
Financial Chronicle)
Fairman
of
Robert Hawkins 8C Co.
Dempsey & Company
Company
Company
in home buying.
CHICAGO,
209
Boland, Saffin & Co.
Inc.
Incorporated
Central
Sills,
(Incorporated)
The Ohio
home-
opportunity to
little inflation
Otis 8C Co.
Inc.
Two With Sills, Fairman
felt
McDougal 8C Condon, Inc.
Cantor, Fitzgerald & Co.
too
and
Paul Frederick 8C Company
Carl M. Loeb, Rhoades & Co.
Mr. Johnson
affiliated
&
Salle
Street,
Midwest
change.
with
Harris,
J. Sims 8C Co., Inc.
mem¬
Stock
Ex¬
August 14, 1950
J. G. White 8C Company
F. S. Yantis 8C Co.
Incorporated
Herbert
Inc.,
Incorporated
7
8
Everybody
Superfluous Now!
terials at
or
deiense
trols
generally
our
economy
or
over
desirable
necessary
hysteria dies
down,
Allied
Stores—Memorandum—
Business vs. the Stock Market—
buying will cease, and
will revert toward their Analysis in current issue of "Mar¬ Ira Haupt & Co., Ill Broadway,
earlier and lower levels. If in some ket Pointers"—Francis I. du Pont New York 6, N. Y.
prices should advance a bit & Co., 1
further, that is no great cause for *5, N. Y.
of
At the same time, our total
(6)
manufacturing capacity is at least
careful
analysis of the facts,
and past, from an eco¬
nomic angle, leads to an unquali¬
fied "No," for such reasons as the
present
following:
(1)
of
Because
sudden
"about
apparent
the
face" of
Gov¬
our
uO% greater than some nine or ten
situation,
Eastern
to
respect
both
the Far
Congress
adjusting supply
There is
we
that
developments
the small-scale
result of
a
demand.
and
to believe
reason
inflationary
major
as
no
actually threatened by any
are
war
.xas
almost doubled; our railroads
jre
in
not
they
in the last
condition—and
better
fall down
once
his Bill, distinctly eliminates price
retail
controls and rationing at the
level.
people are confused, ex¬
cited and almost hysterical.
And, by the Way, all history
This .var. We are now virtually inde¬
We shows that price fixing by Gov¬
is a
time for
cool
heads, stout pendent of natural rubber.
hearts, and deliberate action—ra¬ have a surplus of most everything ernment has never worked, even
the
and
mob psychology.
with
declared
has
one
on
war
us.
We have not been invaded. No one
can
invade
actually
can
even
attack
No
us.
one
It is
in force.
us
questionable whether our al¬
even
leged and potential enemy, Russia,
drop atomic bombs on
us.
a situation
hardly calls for
can
Such
mobilization
economic
any
on
ten years ago
or
by
well prepared and
all
armed
on
land and
almost
there
the
to
They
ruthless.
on
totally
was
the
issue
same
are
tabula¬
a
when
enforceable
Quotation
Inc.,
Street,
46
Front
Bureau,
York
New
4, N. Y.
Manufacturing
James
—Special
Convertible
Bonds
Stocks—
&
Company
report—Loewi
225 East Mason Street.
&
Co.,
Milwaukee
2, Wis.
lists
Newburger, Loeb
Lea F a b r i c s—Information—
Co., 15 Broad Street, New York
death 5, N. Y.
Aetna Securities Corporation, 111
the
by
age—National
Selected
—
&
we
Consumers' stocks were low.
tory.
4ow consumers' stocks are at rec¬
ord highs, as
durable
,)f
oought,
sales on credit.
reasonably ade¬
automobiles are in ample
and by
is now
Housing
quate;
shown by the amount
perishable goods
and
supply.
(131 The
rfisroimagement of ques¬
Revenue;
District No. 148,
School
Cook County, 111.; Mona
Douglas
&
Lomason.
and
Cope-
Township,
land Refrigeration.
Road Bonds;
should
be
achieved
by
cutting
East Side Levy & Sanitary Dis¬
Mexican Railways — Analysis—
down Government credit for that
trict, St. Clair & Madison Coun¬ Zippin & Co., 208 South La Salle
purpose.
Also, possible over-buy¬
ties, 111.; School District No. 31 Street, Chicago 4. 111.
ing of household appliances and
(Warrenville), 111.; Logan Town¬
automobiles should be restrained
Puget Sound Power Sc Light Co.
ship,
Peoria
County,
111.,
Road
by tighter terms.
Memorandum
Bonds, Ballman & Main, 105 West
Newburger
&
Co., 1342 Walnut Street, Philadel¬
Minimum Controls Most Efficient Adams Street, Chicago 3, 111.
phia 7, Pa.
(14) American industry can func¬
Municipal
Yields — Probable
tion most effectively under a min¬
Riverside
Cement
Co.
New
trend—Blair, Rollins &
desirable
tionably
building
home
Ford
111.,
County,
—
—
faced
were
When
n,acn
Some nine
three or four
mighty enemies
—Germany, Russia, Japan, Italy—
we
Dansker Realty & Security Corp.
—Analysis—Dansker Bros. & Co.,
tion of National
Defense
Shares Inc., 511 Fifth Avenue. New York
close to or below applicable work¬ 17, N. Y.
ing capital values; a list of inter¬
Electric
Bond
&
Share
Co.—
esting Canadian Stocks; and brief
Analysis—Wood, Walker & Co., 63
analyses of American Brake Shoe Wall
Street, New York 5, N. Y.
In
Our memories are too
got into the last penalty.
Broadway, New York 6, N. Y.
Municipal Bonds—Brief data on
short
regarding the "gray" and
Also available are data on Win¬
.var, we were just emerging from
Seattle Municipal Light & Power
;he longest depression of our his¬ "black" markets of the last war.
ters
Crampton, Plywood Inc.,
drastic scale.
(3)
importance in our economy.
of
(7)
We have not declared war.
(2)
No
for further compromise
than
ther
York
New
ago—and we have recently
on which we are now launched.
and Barber Oil.
oeen
turning out goods at a rate
Gerber Products Co.—Memoran¬
(12) Attention is also called to
50% higher than in the good year
Comparison of Dow-Jones In¬
dum—A.
G.
Becker
&
the
Co.,
120
major serious
9*0.
Our steel capacity is much the fact that
dustrial Average and the National
South
La
Salle
Street, Chicago
greater, and is still increasing. Our price advances have been at the Quotation Bureau Industrial Aver¬
retail level—and the President, in
3, 111.
apacity to produce electric power
years
fid
with
ernment
nature's sound way
It is
concern.
Street,
Wall
cases
circum-
conceivable
any
the following literature:
prices
i.arices.
this
at
time?
A
under
interested parties
send
to
panicky
all-oin controls now would actually hamper the
effort, and plunge us into totalitarianism.
Are additional Government con¬
firms mentioned will he pleased
It is understood that the
initial
the
Allies, and small proportion of gross national product
called for in immediate tu.ure, observer maintains imposition
partial
Recommendations and Literature
relatively
and
few
exceptions, there is plenty
everything for everybody in
this country, even under prospec¬
tive war conditions.
As soon as
unprecedentedly vast reserves of manpower and ma¬
hand, our non-declaration of war, improved position
our
of
With
(11)
minor
MILLER
of
our
Thursday, August 17, 1950
Dealer-Broker Investment
Everything for
of
Plenty
Citing
.
work'
Economic Mobilization
By ARTHUR VV.
..
overtime
without
almost
met
of
Financial Chronicle
The Commercial and
(628)
while we were
unprepared. Then
Government
worth
dollars'
of
products,
farm
vasic
in
of
order
to
Co., Inc.,
Street, New York 5, N. Y. analysis—Lerner & Co., 10 Post
Office Square, Boston 9, Mass.
—
and
Government control
of
imum
When
interference.
and
44
Wall
the
if
the price high. Surely this is
Also available is a brief review
Over-the-Counter Index—Book¬
generally, time should come when allocations
and priorities are really necessary
let
to freeze prices, profits, wages,
showing an up-to-date com¬ of the Cement Industry.
in the national interest, then such
salaries.
./
parison between the thirty listed
seep
time to ration goods
o
;r
r
,
(8) Our Allies in Western Eur-
effort re¬
as our war
millions
,f
full
for
reason
iway, or even
all
both
strong
sea,
some
mobilization,
and
teeth
were
buying
dill
is
and storing, giving
destroying hundreds
the
year
controls
can
best
be
exercised
by
Seneca
industrial stocks used in the Dow-
Falls
Machine
Co.—
Committees functioning Jones Averages and the thirty- Analysis—Lerner & Co., 10 Post
>pe and elsewhere, whom we have
quired the redirection of about
Office Square, Boston 9. Mass.
under Government approval and five
over-the-counter
industrial
.ssisted at great expense for sev¬
one-half of our economic activity.
Also available is an analysis of
protection. This is the democratic stocks used in the National Quo¬
eral years, are now in a much im¬
and economical
way
for a free tation Bureau Averages, both as Gear Grinding Machine Co.
We Have Vast Stockpiles
proved position.
They should in
to yield and market performance
the
future
be
a
much
smaller country.
Vs. One Enemy
Solar Aircraft Company — Re¬
(15) To impose, under present over an eleven-year period—Na¬
Irain on our physical and finanport—Walston, Hoffman & Good¬
(4) Now we have only one po¬
conditions, the partial controls as tional Quotation Bureau, Inc., 46
lal resources than in the past.
tential
win, 265 Montgomery Street, San
enemy,
Russia, which is
requested by the President, or the Front Street, New York 4, N. Y.
Francisco 4, Calif.
(9) The immediate war effort
probably tired of fighting and the
"all-out"
controls
advocated
by
ailed for by the President is by
Also available is a memorandum
drain
of
military
preparedness,
Mr.
Railroad
Income
Bonds
A
Baruch, now seems unwise
im estimated to add about $10
on
Bunker Hill & Sullivan Min¬
and which continually asserts that
and unnecessary. It would hamper "package"
investment — Cohu &
illion to our Government expenshe wants peace, not war. On the
ing & Concentrating Co.
rather than help the defense ef¬ Co..
1
Wall
Street, New York
itures. This is scarcely 4% of our
other hand, we have, in reserve,
fort.
It would plunge us at once, 5, N. Y.
Southern Pacific Co.
Memor¬
much trained manpower, particu¬
;ross national product, now rununder
generally peaceful condi¬
andum—Blyth & Co.. Inc., 14 Wall
larly
officers,
much equipment
ting at the rate of more than $265
Second Grade
Railroad
Bonds Street, New York 5. N. Y.
tions, into a totalitarian form of
Jllion per annum. Under present
and material, much stand-by mu¬
government, akin to the very thing for income and potential appreci¬
nition
onditions, as above outlined, we
plant capacity, and
vast
which we are now opposing with ation—Data
U. S. Thermo Control—Analysis
on
several
issues—
cannot,
without
wanton
waste,
stockpiles of strategic materials.
armed force. It would destroy our Eastman, Dillon & Co., 15 Broad
—Raymond
&
Co.,
148
State
(5) Further, we have great air ipend any large proportion of our
5+rppt. Boston 9, Mass
customary liberties, and take away Street, New York 5, N. Y.
national effort on either the pres¬
fields from our recent
Industry
—
—
bar¬
war,
racks,
camps,
improved
harbor
facilities, forts, military roads, air¬
planes and airplane carriers, ships
—both
and
merce
battle
for
and
transport
for
—
com¬
ent
or
any
effort.
ense
probable future de$10 billion additional
be enough
should
additional troops
tanks,
(10) The last
to put 2,000,000
under
war
trucks, guns, small arms, ammuni¬
der
way
almost three
tion, atomic bombs, precision tools,
surplus clothing, army and navy
we
had
actually
etc.
stores,
spending
to
up
since
year
Also,
1945
have
been
billion
each
we
$15
to
keep
our
de¬
fense up to date and on the alert.
All
of
should
we
be
"all-out"
need
things should
billions
untold
us
an
these
nothing
again
war
each
year,
plunged
effort.
comparable
save
into
We
will
to
our
requirements during the last
war,
years,
in
been
it
orted
and
for
mobilization, alpriorities, freezing of
ocations,
"ontrol, salary control, profits con¬
trol, etc. Then, however, we were
speeding
of
Government
around 50%
ity,
as
of
up
the
tempo
expenditures
our
compared
to
national activ¬
with
Dickie & Mendelson
With
'•
4%
associated
with
Co.,
North
208
members
of
Midwest
be
was
Nordman
an
can
Eighth
&
&
Co.
the
New
Street,
and
York
Exchanges.
Mr.
with John
formerly
Co.
and
and
in
D.
Edward
the past was
officer of Whitaker
&
AD
LIBBING
&
Franc
Henry,
Stock
Jones
effort
Financial Chronicle)
and Robert E. Mendelson are now
time!
present
Co.
Fred
K. Kirtland, Hermitage Securities Co., Nashville, and
Hawkins, Rauscher, Pierce & Co., Houston, Texas, are presi¬
E. C.
dents of their respective affiliates and also members of the NSTA
Advertising Committee. Fred Kirtland, as President of the N'ash^ville Security Traders Association must be proud of the fact that
our National
President, Frank Burkholder, hails from the Nash¬
ville affiliate. Fred, you are only a few dollars behind your quota.
E.
ESTABLISHED
STATE AND
Thomas Marnell With
MUNICIPAL BONDS
Merrill
CORPORATE BONDS
Lynch Firm
(Special to The Financial Chronicle)
LOCAL STOCKS
BEVERLY
as
has
become
a THyCompany
den
asso¬
Beane, 454 North Cam¬
Drive.
Mr..
Marnell
Teletypes—AT
BLDG.
their
238 and
AT
142
Long Distance
421
and
422
was
with
and
Prugh,
B.
Kansas City.
C.
prior thereto
Christoper &
Combest
&
the
dealers.
your
Deal¬
quotas.
To
My
suggestion
drive
would
be
to
call
on
business associate in Dallas, for the necessary
our
appears many
date
seems
tising contracts and
may
and
the Houston Investment
a
final few weeks to go.
of
associate groups will go far over
have performed:
Cleveland, New
our
four
to
we
Keep in mind in many places
bring in the greater part of the adver¬
are
now
approaching the deadline.
was
here
Phoenix
now
final
Co.
in
has rather
Orleans, San Francisco and Seattle.
the
I
ATLANTA 1, GEORGIA
from
Canavan,
It
formerly with Kenneth A. Ellis &
RHODES HAVERTY
and
encouragement in this,
ciated with Merrill Lynch, Pierce,
Fenner &
response
Jack
HILLS,-Cal.—Thom¬
Marnell
A.
C. Hawkins is President of
Association
high quota due to the fact that
such quotas were established with the 1948 results and inasmuch
as we had our convention in Texas it
naturally brought a large
ers
1894
otes
LOUIS, Mo.—Roy A. Dickie
additional called for at the present
The
NSTA
Henry, Franc Go.
i.(Special to The
ST.
Dickie
only
a
thinking and patriotic citizens.
(wholesale and retail), rent
■apidly
Such
un¬
all-out
to
indefinite
an
policy should be
vigorously opposed by all sound
period.
six months, before we re-
around
>rices
arms.
had been
"for
freedom
our
Land
Co.
in
receive
and
which are very encouraging.
However,
disappointment from an NSTA firm, which
reports
there
is
a
with our purpose. I have repeated
of the trader in our business and
through his commitments he should have the complete confidence
many
not
be in
times
the
full
accord
importance
Continued
on
page
10
Number 4934
Volume 172
the
Economic Policies lor
materials
raw
to travel this
and
Chief
Presidential
omy
H. KEYSERLING*
economic
The American
to
people now need
policies
ecnomic
their
adjust
more
to the international situation now
confronting this nation—and con¬
fronting free
the
over
world.
I
"Ameri¬
term
people"
ca n
d
the
use
1 iberately,
e
for
this
job
not
is
It is
resistance
where the
by
message
for govern¬
aspired for more than two thou¬
years.
But we must com¬
bine
this
ideological resistance
ment, not only
with
for
the
a
only
business,
for
not
only
workers
H.
Leon
or
farmers
or
consu m e r s.
Keyserling
It is
everywhere.
Only by
fort
be
we
can
that unity,
from
come
b ody,
united ef¬
a
And
successful.
in a democracy, cannot
arbitrary decrees
Washington.
from
down
handed
y
unity requires leadership, to
sure, and strong national lead¬
That
be
material resistance, because
history
whole
this
of
two
has shown that
civilization can protect itself from
barbaric reaction only when it is
thousand
years
strong enough to do so.
job for
a
e v e r
sand
mainly by extending economic aid
to the free peoples who had been
stricken
and
impoverished
by
World War II.
This aid was help¬
ership at that., But it also requires
ing these free peoples to make re¬
markable strides in getting back
understanding eagerly sought, and
on
cooperation
group
every
citizen in
voluntarily given, by
and by every active
part of the coun¬
every
to which
achieved,
cooperation forthcoming,
of the very foundations of
try.
The extent
understanding is
this
test
and
freedom
this
and
is a
our
democracy—the
our
of life which we are striving
way
make secure.
to
realize that there is more
to
unity and more agreement about
the economic policies which we
should
might
is
It
among
national
a
debate issues
to
us
one
superficial
from
suppose
examination.
habit
than
follow,
now
policy vigorously, and to spread
the recording of this debate by
of
and by radio.
That is how
arrive at sound conclusions.
press
we
But
notice
take
should
we
that
today is about
most of this debate
details, and not about fundamen¬
tals.
On the fundamentals of the
and what should
current situation,
be
about it, there is an un¬
done
usual degree of unity and an un¬
is
of great strength upon
source
a
agreement. This
amount of
usual
which
capitalize,
should
we
by
seeking even greater unity and
even wider agreement — and
by
consents
these
translating
into
prompt and affirmative action.
no
that the United States had
international policy
of ag¬
grandizement, but sought only to
help others in the achievement of
decent
and
humane
objectives.
to
spell
out,
beyond question the
fact that this kind of material
sad
agreement about the problems we
face and how to meet them.
now
are
challenged by
is
which
not
North
the
source
to
a
not
be found
The
Koreans.
this
of
challenge
Communist philosophy,
main
is
the
which has
corrupted the minds and enslaved
of
bodies
the
one-third
about
of
the so-called civilized world. This
has
force
by
aijid
means
as
set
by
out,
aggression,
well
as
by
subversion
by
direct
indirect, to
extend its sway and mastery over
to
radio
address
by
Mr.
1950.
0
to
responsibilities without, any sacri¬
on
the domestic front.
We
fices
be
must
it
and
despite
But
our
annual
have
nearly $270
to make these
of freedom.
prepared
sacrifices in the
does
cause
that
mean
we
can
keep
butter to
enougn
our
civilian population strong and its
tween
production* to
is
It is
production.
the
suppressing
needs and desires of
common
people, in order to devote an
unconscionable
portion
of that
chine.
military
its
with
Even
our
ma¬
en¬
own
billions.
We
rate
much smaller percent¬
a
total output than the
to military purposes.
This is because we are unwilling,
of
age
our
Russians
do
point the
to further action.
way
should
action
further
be
based upon the
hard fact that our
normal peacetime rate of produc¬
tive
But
efforts which the current situation
insatiable
machine.
war
it follows from this
resist
to
power
that, in order
sufficient
achieve
to
barbaric reaction
military
discourage
or
free
as a
we
na¬
tion must excel the Soviets in to¬
tal
production
than
The
have in
the
in
more
even
the past.
only
we
much
tary
we
and
now
have between mili¬
civilian use,
resist
can
the problem of
how we can divide
upon
controls, upon
what
concentrated
has
discussion
The
we
That
how
upon
while
inflation
so
calls for, we can
expand at a far
rapid rate than all past cal¬
more
culations— which have turned out
conservative.
be
to
Instead
of
total output goal of
$300 billion a year by 1954, we
should now set our sights higher.
We should now try to reach, by
striving for
a
a
is
efforts
to the
And
tial parts of our
I
automatically. But it
realistic
a
of what
gauge
our
do, if we pitch our
can
economy
forecast. It will not
or a
about
come
in
enough
high
tion, not price inflation.
We
have
the
production and more production.
The
leading principle which
labor
force,
the
stamp itself upon
tional
economic
our
na¬
at
this
policies
time should pe this: We need con¬
trols, but we cannot hope to outdictators.
control
the
continue
to outproduce
this above all is what
We
can
them, and
we
must do.
The record of production in the
financial
the
natural
in produc¬
increases
real
mean
technology, the
business genius,
resources,
and the
resources
to
make
great strides in production.
do
so,
of
the
Soviets
attempting
that
the
actions
apparent
even
to
may
become
them.
other
If
with
we
slack
more
now
II, we
from industrial
put it into the
armed forces much more rapidly
draw
manpower
production
and
extensively than we are now
and
expecting
while
able
increase
to
balance,
On
do.
to
should not expect to be
we
output by a
our
similar two-thirds in the next few
certainly step it up
years, we can
rapidly than the ex¬
cellent progress which has been
much
more
since
made
War
the
World
of
end
II.
Specific Policies Required
This
policies.
specific
requires
should
policies, as I have said,
take precedence over all
other
policies
These
in
the
economic
field.
As
we
get ready for a long and
pull,
hard
double its
new
industry should re¬
efforts to make use of
inventions,
to
expand
become
for the United States, as
central
the
has
it
Consequently,
supporting
in
tower
the fortress of freedom,
to under¬
its mili¬
also to expedite
military aid to other free nations.
take
vast expansion of
a
tary forces, and
large
and
fully
small, are tremendous
utilized.
Government
concentrate
upon
encour¬
aging and stimulating the full use
of these resources. Many methods
used
for
this
purpose
during
World
we
War 'II—including
Continued
based
not
Chesapeake and Ohio Railway
Third Equipment Trust of 1950
2%% Serial Equipment Trust Certificates
(Philadelphia Plan)
upon
the historic lesson that this
is the only possible way to avoid
To
mature
$179,000
on
each March 1 and September 1, 1951 to 1965, inclusive
upon
To be
World War III.
This
appraisal
general
guaranteed unconditionally as to payment of par value and dividends by endorsement
by The Chesapeake and Ohio Railway Company
the
of
international situation is shared, I
feel
sure,
by
Priced
overwhelming
the
there
unity and
yield 1.40% to 2.625%, according to maturity
of these Certificates are Subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any state in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such state.
Issuance and sale
agreement.
But
to
The
are
other
areas
of
agreement as well—in
policy. What
the field of economic
of these?
some
It stands to
HALSEY, STUART &, CO. Inc.
this
support
reason
increased
effort, founded
ing for
our
peace
economy
that
upon
we
can
military
is
as
year.
For the road to peace and
at
security,
and hard.
of
our
best,
the
be
weapons
the steel
and
and
the
the
HORNBLOWER & WEEKS
L. F. ROTHSCHILD
FREEMAN
& CO.
PIERCE, FENNER & BEANE
FIRST OF MICHIGAN CORPORATION
&. COMPANY
McMASTER HUTCHINSON & CO.
long
which provides us
Keyserling,
chinery,
will
And it is the strength
economy
A. G. BECKER & CO.
MERRILL LYNCH,
strong as pos¬
by month and year by
month
& CO.
INCORPORATED
and security, only if
sible—and only if it grows strong¬
er
R. W. PRESSPRICH
the yearn¬
ma¬
food,
MULLANEY, WELLS &, COMPANY
August 10, 1W0
loans
on page
$5,370,000
resigna¬
tion to the inevitability of World
War
III.
It
is
based, instead,
is
This
its
plant and equipment, and to turn
out more goods.
The productive
resources
of our industries, both
us
necessary
On
have.
the advent
had to with¬
with
people understand.
some
of
It is true that we
hand,
of World War
be¬
middle
the
and
than
resources
should
to continue their ag¬
gressive
two-thirds,
1939
in
total produc¬
our
almost
1939
If we
o:'
to make.
World War II.
the
as we
guns
more
many
by
if
folly
in tip-top shape
better be able to
may
We increased
these
will keep so far ahead
we
as
tion
response
heavy duties confronting us.
talk about this goal,
when I
task—that we are
in some danger of neglecting the
even
more important problem of
we
may need
$350 billion.
prediction
that
make
annual output of
This is not a
total
1955,
about
doing—and all of these are essen¬
should
so
started
expansion is( good, but not
good enough for the times that we
are
now
facing.
If we put the
kind of drive into our productive
erish
so
a
in
properly unwilling, to impov¬
our people in order to feed
and
an
had
upon
larged defense efforts, we will be
devoting
demonstrated
growth
of
necessary—because unfortunately
that is the only language which
with
*A
Aug. 9,
risen
had
of
before,
of
among
1949,
by
before
and butter, too, in the
meeting our new world
guns
sense
to admit, far more than
that military resistance
barbaric
reaction
was
also
pelled
force, the
inspiration
and
power
us
alone was
enough. That outbreak com¬
are
We
to
resistance to aggression
in
greater detail, the broad areas of
main
brought
But the Korean outbreak
and
like
should
I
fair-minded person and na¬
every
tion,
also full evidence, to
was
in
But
even
outbreak
recession
output
1950,
was
have
the productive power of the
American
economy.
It
should
Curtain,
in
majority of the American people.
It is our first great area of unity
of Agreement
Areas
Broad
This aid
security.
political
their
gaining
home
First of all. it is vital for every¬
one
their feet economically and re¬
of
who
estimate
stargazing.
but
middle
were some
this
Tins does not mean that we can
rise
that
at
its
behind the Iron
making great strides
from
since the Korean outbreak is this:
this
There
that
the Korean
a
billion
domestic
own
our
high and to keep our do¬
material
reaction
to
barbaric
to
resistance
the
could
output
$250
of
economy
deficiency in public
discussion and understanding
contribution
economy.
mestic
be
can
States sought to make
the United
its
Korea,
an¬
our
morale
according
that
best estimates
future
in
outbreak
the
Before
economic
production,
which would certainly have car¬
ried us far above $300 billion in a
shorter time than originally pre¬
dicted.
This should give heart'to
those who place so much stress
Soviet economy,
the
dragged
carrying every¬
of what free¬
dom means—the kind of freedom
toward
which
mankind
has
resist
must
nothing
great headstart.
The
the
In
thought
This gives
But a race
is not won just by starting ahead;
we must keep ahead, and we must
be first to cross the finishing line.
ideological and ma¬
field of ideas, we
twofold:
are
terial.
output, for example, is
our
necessary
strength
that
about $300 billion within
about one-half the total of that of
resist and
of
time to
the world
the free world.
instruments
five years.
and
size,
up
abroad — all
without
wearing out or tearing down the
in
the
just
not
made
was
industrial
repel by marshaling our resources,
and the resources of the rest of
Our
estimate
about
strength
build
to
Two years ago,
services,
and
dollar values.
national
a
able
undertake
nual
us
we will
military
strength, provide military assis¬
tance to other free peoples, and
be
programs
higher than in the last
before World War II—in real
goods
one
now
in the world,
whole.
output,
make strides of this
year
from
a
past
billion
be summarized in
production.
We are
as
total
Our
potential military strength, be¬
cause we excel in production. Our
to
and more of the globe.
this force that we must
peoples all
Economy
economic
the
during
this year, will be more than $100
in
taxation and less borrowing.
more
of
may
actual
in
adviser, though praising broad
policy, contends more stress
should be placed on increasing national production than on
imposition of controls. Says we should strive to increase
annual output of nation to $350 billion by 1955 and, to achieve
this result, Government should concentrate on encouraging and
stimulating full use of industrial resources and also reinstate
World War II methods of incentives, such as loans and tax
deductions. Advocates as means of avoiding inflation a pay-aspolicy through
Strength
the strongest nation
of agreement in economic
you-go
States,
decade, has exceeded the highest
The main strength of any econ¬
word—
areas
United
tools,
expectation.
Our
Today's Problems
By LEON
the
long and hard road.
Production—Main
Chairman, Council of Economic Advisers
9
(629)
The Commercial and Financial Chronicle
.
..
WM. E. POLLOCK & CO., INC.
20
10
The Commercial and Financial Chronicle
(630)
the
Missouri Brevities
The report
of Laclede Gas Co.,
Louis, for the 12 months ended
June 30, 1950, states that the com¬
St.
pany's construction budget for the
12 months ending Sept. 30 next,
called for expenditures of
over
$8,200,000, of which $4,515,000 has
been expended through June 30.
The report adds that the company
will require, over and above the
proceeds of the $5,000,000 of 4.6%
preferred stock sold on July 13,
capital
additional
some
Dec.
be obtained by tem¬
31. This may
bank loans. Operating rev¬
porary
the
for
enues
by
months
12
ended
30, 1950 were $20,168,209,
against $15,767,069 for the pre¬
vious 12 months' period, while net
after
taxes,
interest and other
June
as
charges, was $2,443,416, equal to
98 cents per share, as compared
with
$2,241,746,
92
or
cents
share for the year ended
per
June 30,
1949.
per
share.
net
Constellation
more
at
approximate
an
about
earnings
of
$2,195,561 in the first six months
Of 1950, equal after preferred divi¬
net
reports
dends
to
$1.49
share
per
362,790 shares of
outstanding.
stock
common
This compares
now
with earnings of
1,-
on
$1,860,667 for the
period of 1949, equal to $1.38
share on the 1,188,756 com¬
shares then outstanding or
*
*
per
$1 .25 per share on the presently
outstanding shares reflecting pref¬
erence
stock conversions during
During the past six
months the company opened 22
additional branch offices in eight
states.
The company is presently
the
period.
operating
total of 193 offices in
a
The
Kansas
will until
in New York
months ended June
30, 1950, Century Electric Co., St.
Louis, reported
(EDT)
or
period of last year.
if
if
if
earnings of American Zinc,
Lead & Smelting Co. and wholly
owned subsidiary cdmpanies, af¬
ter Federal income taxes, amount¬
ed to $881,466, or $1.18 per com¬
mon share, for the three months
ended June 30, 1950, as compared
with $560,573,
or
71 cents per
common share, for the same pe¬
riod of last year.
For the six
ended
June
30, 1950, net
was $1,246,239, or $1.60 per com¬
mon share, as against $951,668, or
$1.16 per common share, for the
first
half
of
1949.
For
the
12
months ended June 30. this year,
net profit totaled $868,486, equal
to 79 cents per common share.
*
;
3C
*
Aug. 23
on
City receive bids for
equipment trust certificates,
series K, to be dated Sept, 1, 1950,
15 annual installments
and due in
*
*
Trans World
$6.46
or
with
compared
share,
common
per
common
per
$3,716,116,
for
share,
period last year.
if
Eisen
Lucas,
and
Mercantile-Commerce Bank of St.
Louis
cents
after
taxes
Steel
$4.10
per
to
earnings
$572,231, or
Net
share,
common
com¬
share
Book value per
June
at
30,
$46.20, against $41.33
was
1950
year
a
directors
Trust
&
voted
*
*
*
City
of
Co.,
National
City,
Kansas
transaction
this
bank's
the
is
outstanding
surplus, $5,000,000;
undivided profits, $1,980,000.
and
stock
000,000;
OF
LOS
ANGELES
The
Security Traders Association of Los Angeles held its an¬
three-day funfest at the Hotel Del Coronado on Coronado
nual
Island
the
bay from San Diego June 23-25. Attendance
high, including NSTA President H. Frank Burkholder, Equitable Securities Corp., Nashville, and Vice-President
across
at
was
all-time
an
Don Sloan of Donald C. Sloan
Co., of Portland. A large contingent
guests from San Diego, Chicago, St. Louis
that Coronado proved to be an excellent
lbcale for what has always been one of the finest Traders parties
of
the year.
In addition to the usual recreational facilities
provided by the
swimming, boating, fishing, etc., guests had the oppor¬
of watching the final matches of a tennis tournament
of
Hotel
tunity
featuring nationally known stars.
Excursions
to nearby Tia Juana, Mexico added an Interna¬
atmosphere and the National Steel & Shipbuilding Co. of
tional
COMING
hosts at
cocktail party held at the hotel Satur¬
a
before the entire
made its
group
final
visit
across
Alexander
Jack
of Walston, Hoffman & Goodwin, President
Angeles5 Traders' extends full credit to the Committee
of the Los
EVENTS
of
Scotty Stout, Blair, Rollins & Co., Inc., Chairman; Roy Warnes,
Bill Pike of Morgan & Co. for the grand
Hill Richards & Co. and
affair that it
Louis, reports consolidated net in¬
come
of $1,077,116 for the first
half of 1950.
This is equal to
was.
Sept. 8, 1950 (New York City)
$1.12 per common share after de¬
ducting preferred dividends and
New York Athletic
with $1,152,334 or $1.21
per share for the same period last
year.
Net sales for the 1950 pe¬
riod amounted to $35,696,724, a
Security Traders Association of
York
New
annual
outing at the
Club, Travers
Island.
Securities Salesman's Corner
compares
decrease of
compared with
the first half of
6%,
for
There
operation
as
as
were
220
stores
By JOHN DUTTON
Pacific Northwest Group of the
Investment
annual
Association
Bankers
meeting at Gearhart Hotel,
Sept.
14, 1950
New
against 208 a year ago.
Tournament
at
Exchange Golf
Garden City
the
Country Club, Garden City, L. I.
For the six
months ended June
1950, the net earnings of the
McQuay - Norris
Manufacturing
Co., after the usual reserves and
after
all
tax
provisions,
were
30,
earned
This
compared
in
1949.
of
after preferred
dividend
requirements,
to
47
cents and 44 cents per share, re¬
spectively,
on
the
outstanding
355,939 shares of common stock.
For the quarter ended June 30,
$191,111, or 49 cents
share
as
against
$121,277 earned
in
the second
quarter of last year.
1950, net
per
try Club.
Va.)
sociation
Empire
ating
1950
District Electric
for the
periods
ended
below
were
Co.
6
of
oper¬
and
12
June
30,
for
the
those
periods ended June 30, 1949,
income, after taxes, interest
and other charges, showed sub¬
same
net
as
Annual
Traders
against $3,643,963
Rockwell
Oct. 12, 1950
Convention
at
Dallas
Bond
Club
Annual
Nov.
Fall
1950 (Hollywood,
convention
at
the
Holly¬
wood Beach Hotel.
New York
Security Dealers As¬
sociation Silver Anniversary Din¬
at the
Waldorf Astoria
Hotel
With Mitchum, Tully
LOS
ANGELES,
Klingensmith
and
Cal.—C.
R.
Philip , M.
Smith, Jr., are now associated
with Mitchum, Tully & Co., 650
Spring Street.
Mr. Kling¬
ensmith was formerly with Buck¬
ley Brothers and Franklin Wulff
Co.
Stix & Co.
Southern Union Gas
INVESTMENT SECURITIES
509 OLIVE
STREET
Quoted
St. Louis LMo.
Garfield 0225
l. d. 123
TELEPHONE:
TELETYPE:
GARFIELD
0514
economy from a semi-war
all out drive for the achievement
not
whether
or
not
the
eventual
outcome
many
WHEN'
PEOPLE
the
greatest salesmen
I
we
HAVE
was
WORRIES
once
have
SALES
surprised to learn
ever
had during the
who almost single-handedly built his name
by-word, and who created a business based upon
service to investors, made the true statement: "What we really
a
man
national
a
is hope and
sell
is
as
simple
When
for doing
way
a
to destroy fear, that is what people buy,
that."
as
people are disturbed you have a positive opportunity
business with them. Now is the time to make your adver¬
If
have been finding difficulty locating
you
prospects through your direct mail advertising; if returns have
been small, now is the time to change all of that.
I know of an
alert dealer who recently picked out 10 soft drink stocks. He listed
on
a
page
and sent
in only
who owned stock
let them know
letter out to a selected list of people
of the companies listed. He offered
a
one
(if they
were
interested) how the change over
would affect any one of these companies. He
told them he could advise them if sugar shortages might hurt as it
to
a
war
economy
did in the last war, if manpower
shortages, tire rationing and gaso¬
rationing might affect these companies; if there were possible
glass and other shortages which might impair the earnings of this
particular industry or of any company in the group. He also of¬
fered a special review of any company on the list. A space was
reserved at the bottom of the page for reply.
along these lines will pull inquiries.
The next stop is
material and advise the prospect that there
has been a slight delay in the procurement of the special report
(or that inquiries have exceeded supplies) but in a few days it
will be delivered.
Then send out your salesmen. Have them go
in to make a service call.
Deliver a special report. From there
out general
send
on
the door is open and you
Another
you,
"I
case
have made a valuable contact.
of capitalizing on
fear is where people will tell
not speculating any more, I sold out. I am out of the
Don't you believe it. First of all many of these people
am
market."
right back in the market again as soon as they gain their
once again, and the worst part of it is that most of them
will do so at much higher prices. These are the people who can
be shown that the greatest gamble today is to take a completely
will be
confidence
liquid" position. If articles like you read in the
eminent economists are not convincing
"Chronicle" every week by
enough I don't know where else you are going to find your proof.
Take an article or two—take any issue of the "Chronicle"—go out
and see some of these people. Show them in black and white that
men who KNOW and who have no axe to grind are saying, "IN¬
FLATION
DAY."
it.
WE
LOOMS
HAVE
Ask
these
AHEAD, SERIOUS
INFLATION, WORSE
KNOWN YET, MAY COME SOME¬
EVER
90%
what
they expect to
do about
expect to protect themselves with dollars,
people
Ask them how they
and
members'
MIDWEST STOCK EXCHANGE
Landreth Building
Louis 2, Mo.
of
one
past 50 years,
THAN
SCHERCk, RICHTER COMPANY
to
that
"all cash, highly
Mfg,
—
that
to
&
matters
is
A letter
(Starlight Roof).
South
an
of these holdings about which people
concerned; from the standpoint of the salesman the point
consider
line
Dec. 8, 1950 (New York City)
ner
nation's
OPPORTUNITIES ARE CREATED.
to
Investment Bankers Association
annual
It
favorable
now
are
them
26-Dec. 1,
the
amounts to
tising work overtime.
(Dallas, Tex.)
Meeting.
for
Southwest Gas Producing
Sold
be
As¬
Fla.)
revenues
months'
Security
the Cavalier Hotel.
*
Joplin reports that although
hours.
will
it
National
was
common
ried
into
Sept. 26-30, 1950 (Virginia Beach,
equal,
was
Philadelphia Field
at the Manufacturers Coun¬
Day
$193 072
to
first half
the
(Philadelphia, Pa.)
Bond Club of
in
over
now
sufficient armed
to
Sept. 15, 1950
change
basis to what
strength to properly protect this country has
left many investors in a complete quandary.
Security portfolios
composed of many peace stocks are giving their owners some wor¬
(New York City)
York Curb
The
of
Gearhart-by-the-Sea, Ore.
in
1950 as
of June 30,
Sept. 8-9, 1950 (Portland, Ore.)
Texas Eastern Transmission
Broadway, New York City.
the border to watch the lamous Jai Alai games.
>'f
Tennessee Gas Transmission
SL 456
SMITH, Chairman,
Advertising Committee,
Edison Brothers Stores, Inc., St.
Delhi Oil
St.
convention issue of the "Chron¬
120
San Diego were
turity.
Mississippi River Fuel
Teletype
our
SECURITY TRADERS ASSOCIATION
day evening
100.003, and reoferred
yield from
0.80% to 1.75%, according to ma¬
Texas Utilities
Bell
ad in
an
feel that reward of his efforts.
may
Pershing & Company,
$2,-
the bonds at prices to
Black, Sivalls & Bryson
—
he
HAROLD B.
transfer
to
(Special to The Financial Chronicle)
Bought
icle"
and New York all agreed
$1,000,000
from
the
undivided profits ac¬
count to the bank's surplus fund.
20 years, at
if
of his firm and with
from San Francisco and
before.
The
NSTA Notes
30,
$6,377,173, as
for the same
totaled
first half of 1949.
common
S
page
Co.
pared with net of $711,296 for the
21/4% school bonds, due from 1 to
months
59
pe¬
Aug. 9 purchased $450,Louis County 1%% and
on
000 of St.
from
Thursday, August 17, 1950
*
Scullin
$12,224,246
last year.
capital
Waeckerle
&
*
of
amounted
After
5-:
of
to
1950
have
or
months'
12
for the six months ended June
$5.19
$3,066,366,
Continued
NSTA
sales
Bank
stantial gains. Operating revenues
totaled
$3,579,258
for
the
six
equal
*
Net
each. The railroad re¬
ported a net income in the six
months ended June 30, 1950, of
Airlines, Inc. for
the first half of 1950 reported net
income, after provision for taxes,
$1,436,103,
previous
of $180,000
$201,032
Net
months
Ry.
a
59 cents per share, as com¬
pared with $36,427, or seven cents
per share, for the corresponding
>
Southern
of
net profit, af¬
ter Federal income taxes, of $320,271,
the
riod, while net amounted to $1,223,315 as against $931,581.
against
the purchase from it of $2,700,000
1949.
For the six
of
if
City
noon
$37,989,749
19 states and 159 cities.
for
period
same
mon
cost
1949, while net
to $630,031 as
For the
12 months ended June 30,
1950
operating revenues totaled $6,955,533 compared with $7,253,446
Corp.
be made in 1951.
American Investment Co. of Illi¬
fices,
total
of
..
with $488,380.
transports
$6,000,000, with delivery to
*
(St. Louis), operating a na¬
tionwide chain of small loan of¬
a
the purchase of six
from the Lockheed Aircraft
the same
nois
with
compares
$730,534, or 30 cents per
share, for the first six months of
last year. The corporation on Aug.
10 announced
half
amounted
compared
of
if
if
>:•.
This
first
income
.
government bonds.
Once a man begins to WORRY he's
sold. The rest is easy—show him how to protect his assets
regardless of what happens. A well planned investment program
consisting of diversified stocks, bonds, and cash is the answer.
Every time one man puts a new idea across,
SL-80
who thought of
OF
IT.
he finds 10 men
it before he did, BUT THEY ONLY
THOUGHT
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
.
.
(631)
the
debt,
The Banks and the War
President,
comprise
living
American Bankers Association
Chairman, First National Bank and Trust Company, Paterson, N. J.
Head of ABA, in picturing threat
cussions
Says
war..
of allout
banks
our
fully financing
contribute to inflation.k Urges
not
special
tions,
the
been
called
struggle
ica's
technical
Korea has
in
trial
capacity,
effort
an
by
the
United Nations to suppress an act
f
o
!
,
aggression
s e
f
o
who
are
mobilize
the
and
rela-
slow
are
when
skill,
they
their
in¬
finally
and
is
more
productive.
the
the
to convert it to
It is not
it is
easy job
as
an
But
war.
enemy.
economic
and
complex
as
to
are
upon
industrial
structure
appears
know
we
worldwide
the flow of
than
scope,
F. Raymond
police
action.
total
of
prospect
nized.
It
create
can
tasks
arduous
more
problems
banking the
that the
It
many
even
serious
and
than
it
require of
can
full
same
an
be recog¬
nation
the
for
already faces.
is
war
ugly reality that must
support
war
banks provided through¬
World
out
Peterson
We
II.
War
be
must
ready to provide
that same sup¬
port,
more
and
even
if
is
it
the
is
War
also
the
nomic
that
have
World
of
It
men.
of
is
people of this
since
done
War
na¬
end
the
achieve
to
II
of
peace
pear
ices may
begins to bend to the tasks
to defend this country and
war
remaining free nations against
ernment
the
aggression of
communist empire,
growing
between
conflict
the
In
munism
the
and freedom,
Com¬
there is no
this
the
"small" war. Our
this war can use
satellites, as in Korea, to confuse
the issues; to select is own time,
such thing as
place, and weapons of war; and to
bait
into economic
us
with
exhaustion,
false
intervening
toward
gestures
But for almost five
peace.
years
it has seemed inevitable to
most
political
perts
that
military
and
—
ex¬
struggle—the
final
a
showdown
must eventually
because war0 is the weapon
conauest is the real goal of
and
real opponent in
formidable and aggressive.
This country's
is
war
This adversary has
ited
manpower,
the
vast
almost unlim¬
strategic defense
and depth of
space
and Asia, and the ability
and ruthlessness to seize and regi¬
Europe
ment troops,
rials
of
war
labor and the mate¬
in her own country
and the nations she has
High
stated
some
conquered.
government officials have
that Communism also has
atomic weapon.
form of
for one believe
that
tremendous industrial
economic capacity, when mo¬
I
But
America's
bilized,
can
compensate
largely
handicaps, for
her
commendable unwillingness
to arm herself by seizure and vio¬
her
strategic
lence, and for what
in
manpower.
*
the
sound
this
at
never
and
An
she may lack
Because of Amer¬
by Mr. Pe+erson before
Conve vfon cf
VWn?a
address
Annual
Bankers
they
critical
Never
strong.
so
Association.
Springs, W. Va., Aug. 10,
Wh'te
1950.
Sulphur
such
had
great
re¬
exceeding $170-billion, ,or
vast
a
backlog
of wartime
how"
"know
this country
which
with
aid
to
during war. It is wise
alert ourselves
now
all that
to
be required
to do.
Financial and economic planning
banking
may
vital
as
to
success
in
war
Underlying
services
prices. However, this
Treasury's experience in
financing the materiel and pej>
the
was
can
we
sonnel
-
requirements, and the
are
as
the
upon
sweeping .that
so
could
statist nation.
a
producers of
The controls the law establishes
are
(4) Assisting the government in
locating and freezing enemy funds
labor, industry, and finance
very broad and far reaching.
Our experiences in
in
and
ian,
powers over
as possible.
In
banking, we go
wartime
credit
guaranties
consumer
field
own
powers
and
of
such
of
other
the
Fed¬
such
war
emergency
with
financial
Association
with
banking
Army, Navy, and Air
Force
bases
and
encampments,
and
check-cashing
services for
and
experiences of banking
us
II
how
Of
but
may
respects it
war,
But-
based
on
or
to
in
now
we
thei
forced
ing and
plans
must
Let
account¬
coupon
clearing services for the
counts
it
the
for
Treasury and
depositories.
become total war, and a long
We can hope for the best,
it is safer to plan for the
estab¬
United
serving
as
ac¬
States
its
tax
him
and
who
are
called
a
committee
throughout
various
among
investors
to
is
its
This
ABA's
known
as
committee,
the Committee
emphasize
that
by
ernment
tinued
time
with
ury,
him
the
Borrowing,
has
during the past five
The
drawing upon
our experiences in
II, we are not commut¬
ing the blunder of "planning for
the last war."'
Military leaders
do not disregard the lessons they
World War
tasks
first of
of
these
banking
fundamental
is
to
help
the
United States Treasury finance
war
expenditures.
terms,
this
its
In the simplest
means
helping
to meet periodically
Secretary of the Treas¬
at his request, to consult with
years
on
postwar
debt.
mittee
This
management
week,
met with
Washington
the
the
Secretary in
its sug-'
offered
and
developments.
this
service
We shall continue
his
at
the
banks will
pleasure
financing.
Early
in
World
War
throughout
mobilized
to
sell
carried
be
to
distribute
War Savings Bonds to the public.
Under the leadership of the As¬
sociation's' Committee
the
Continued
on
on
$3,570,000
Seaboard Air Line Railroad
such
in
on
fundamental
tional debt and of the credit struc¬
of
and
ture,
maintained
be
values
the
first
The
the
at
war's
war
a
all
destruction
almost
of
Military
be taken for
human
mature
To be
granted.
guaranteed unconditionally as to payment of principal and dividends by endorsement
by Seaboard Air Line Railroad Company
It must be
casualty
suffering,
$238,000 annually on each September 1, 1951 to 1965, inclusive
Priced
lists,
to
yield L50%
to
2.625%, according to maturity
all the destruction and hard¬
ships
of
war,
as
we
have
again
learned in Korea.
Confidence
blithely
is
assume
not
does
no
one
that military
and
war
cannot
assume
<■
the
financial
war
ways
war
victory
nation's
to
that will
be
for
R. W. PRESSPRICH
and
during the
carried out in
of
& CO.
OTIS & CO.
L. F. ROTHSCHILD
&, CO.
(INCORPORATED^
FREEMAN
&, COMPANY
THE
ILLINOIS COMPANY
democracy.
economic
help
soundness
CO. Inc.
a
WM. E. POLLOCK
operations
ought
future
is
HALSEY, STUART
that
certainty. But
a victory won over Communism at
the price of economic and social
disaster, and collapse of its demo¬
cratic
institutions,
would
be a
Pyrrhic
cf these Certificates are subject to authorisation by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such State.
is a foregone
Military
leadership
conclusion.
victory in
issuance and sate
The
Vital, but
victory in total
So
To
cannot
victory
fought for and won at the price of
can
(Philadelphia Plan)
social and economic insti¬
our
Equipment Trust Certificates
the
war is,
with Communism would
tutions.
and
2%%
end.
military victory. Defeat
the
mean
can
for
requirement
successful outcome of any
in
Equipment Trust, Series H
behind
is not dissipated and
money,
preserve
the
the
national
II, the
country
the
and
and with such skill, that the
integrity of the na¬
ways,
August 16, 1950.
&
CO., INC.
and
cooperate fully in'
economic conduct of the war
ought
of
Com¬
gestions with respect to Treasury
financing in view of the new wai;
as
this
con¬
peace¬
the
banks
to serve in the armed forces.
now
Gov¬
on
.
me
of
infla¬
tionary effect.
major consideration: the financial
and
govern-r
types
minimize
War
women
of
securities
possible
(11) Providing trust services for
men
worst.
al¬
(10) Maintaining War Loan
be
that
armed
the rationing system it may
lish.
differ from
how long it will
assumption
the
in
dependency
government as an essential part of
in
progress,
men
(9) Providing
with
war
of
receiving
lotments.
many
do not
may
our
the
valuable
course
rapidly
Communism
last.
are
nation
the
to
other ways.
know
families
in
War
The
offered;
their
terms,
maturities,
and
interest
rates. It suggested sources of funds
to be borrowed, with a view to
spreading the debt as widely as
Regula¬
branch
form
ment
ac¬
Federal
to
eration; the nature of the
of
de¬
in
insurance
success
As the Secretary's
call, the committee offered sug¬
gestions regarding the size and
placement of each borrowing op¬
housing, and administering
granting of real estate mort¬
credit prudently and
the
advisiory
to
World War II.
assis¬
of
underwrote
,
Federal
facilities for
War ii
during
Treasury War Loan Drive..
,The Secretary of the Treasury
requested the American Bankers
com¬
regulation
construction
(8) Providing
Banking Experiences in World
was
every
tions.
ends.
44%,
individuals,
as
banKs
,
the
taxes
companies, and trust funds.
civil¬
of
uses
the
in
the
cordance
the law prescribes, when
as
in
gage
over
powers
obtained
The
The balance of $222 billion;
or
56%, was raised through bor-,
rowing from the banks and from
fense
loans
consumer
over
collected
credit.
(7) Pioviding
tance
industrial
of
abandonment
and
eral
credit
our
non-military
authorities
on record now
repeal of the government's
for the
or
intended
are
unnecessary
(6) Cooperating
prompt¬
as
in
war.
mercial credit.
the consuming public from
the shackles of control
this country that
(5) Restricting
production and credit, and liber¬
ating
$175 billion,
subversive
taught every one the necessity for
restoring economic freedom, curb¬
ing the government's
to
success
warfare
gov¬
costs,
War II: Federal expendi¬
during that war amounted
$398 billion. Of this amount;
from
for espionage, sabotage, and other
activities.
World War. II
operating
private and institutional investors
ricultural commodities needed for
both military and civilian uses.
from
emerge
industrial
and
materiel.
(3) Financing farmers in the
production of food and other ag¬
National
recent
expands, maintains,
supplies the armed forces,
nical
War
gov¬
it
as
ernment's
of all
and financial
the
for economic
plans
mobilization
the
yet
the future movement
or
military planning.
of course,
Communism.
for
fortunate
the
by
war
over
before been
come,
and
Sound and Strong
Although they ap¬
the economic-
country
what
the banks have
a
real adversary in
t
it
wartime
Services
"
war.
is
of
privileges, and submit
Defense Act
may
to
have
many
conferred
powers
point in the nation's history that
so
forego
war.
a
the last
have
are
.
differ from those of the
war.
Our Banks Are
The
.
perform are:
neccessary,
The
the nature
know
not
of costs and
Banks' Wartime
and- helping
the
United
States
Treasury, distribute its securities
among investors.
(2) Providing credit for tech¬
World
of these serv¬
some
duration,
been
as
sources,
nation
in
services
war
and extent of
so
controls
do
we
war's exact nature, its totality, its
their
more—credit
than
during
to provide
time
perhaps
World War II, although
for an even better future
now being set aside while the
the
this
always
eco¬
an
plans
f
required
and
and
people
our
to
effects upon
They may be
banks.
much—and
has
War
profound
nation's
It
the
services.
produced
the
with
other indispensable fi¬
credit and
nancial
industry
and
government
prosperity, and their hopes and
and
of
productive economic or¬
ganization because it provides the
system.
All
tion
test
taskmaster
peace,
nation's
last
needed.
in
or
war
essential part of the
PaiiKing is an
an
-international
The
In
can
material becomes
war
torrent.
a
in
wars.
cause
World
ly
nations,
an
past
is
of
means
even
tures
of
it
that
in
There
determining
approximating the cost of
this war.
This, of course, is be¬
or
and
be
experience
experience
known
no
ment
done, with such completeness that
tween
in¬
operations with
war
their
on
re¬
quirements for money.
financial services for the govern¬
from
be¬
banking, fi¬
in wartime.
Treasury meet its borrowing
(1) Providing credit and other
of
war
eye
war
opening phase
a
abandonment
restrictions
the
to
their
but
fight,
fully turned
Our
how¬
Korea
be
recently
nations
their
vincible
national
ever,
can
strength have always proved
field of inter¬
tions,
conutry
has
and
wrath,
lay¬
in
Halsey
democratic
u s
men
this
pointed out that the free men of
To
peace.
indus¬
ability and
than her adversary.
weapons
Admiral
and to restore
t hro
ter
democratic
government at the end of the
willing
and produce more and bet¬
design
ulti¬
themselves to all that is necessary
rela¬
international
of
respect to
holds
industry
They, too, must make their plans
the
to win
terms
of
the
same
and
for future
important,
survival
rights and
in current crisis.
In
,
*
experiences
The
history,-
.
Pledges full support of banking
by Federal agencies.
sound¬
with
true
war
by law and regulation during the
war.
Throughout
the
nation's
they do
in extending
sure
care
their
upon
their
wars.
in
former
already and yet to be established
credit and recommends tightening of mortgage loan
consumer
terms
make
nance
of
way
by
of
banks already made by American Bank¬
Association to appraise loans so as to
democratic
depend
prompt
on
\
production. Lists wartime services of banks,
war
learned
in
stitutions in this country depends
and strong and capable of
sound
are
and repeats warn.ng to
ers
and its reper-1
war
credit
economic
institutions
which
the
Equally
mate
banking, reviews experiences and lessons of last
on
the
the
at the war's end.
ness
•
and
because
social
and
PETERSON*
By F. RAYMOND
dollar,
structure,
11
McMASTER HUTCHINSON &, CO.
Treas-;
page
21
,
^
The Commercial
12
ture
Attack
"As
executive, you'll
about if an
drops on or within a
company
a
debris, air shock, splintered glass,
have nothing to worry
etc.) continue for some time after
atomic bomb
the
But if
you're outside tnat limit, advance
planning against blast, burn, in¬
cendiary, and radiation can save
mile
half
of
lives."
This grim advice is from a list
of protective measures which has
been summarized by the National
Industrial Conference Board for
explosion.
places inside
The safest
plant.
your
ing
Keep
build¬
a
the
interior portions.
close to these as pos¬
are
as
sible.
Burns and Fires
who
executives
responsible
are
for the safety of the
people under
supervision.
The Board's
is based on training lec¬
and
publications
of
the
their
primarily an 'incendiary
In Hiroshima and Naga¬
saki fire and burns accounted for
is
bomb
weapon.
approximately 50% of the total
deaths.
Management should pre¬
to take care of a great num¬
pare
the
btarn cases and firefighting
equipment
should
be
safeguarded by being placed in
published, "The
Effects of Atomic Weapons," plus
underground shelters or in heavy
concrete structures above ground.
report
tures
Atomic
other
Commission,
Energy
just
handbook
ber of severe
sources.
with atomic
limited, executives
know relatively little about pro¬
tective
measures.
The Board's
report attempts to
fill the gap.
protective program,
according to the Board, are the
Basic
to
a
facts that:
(1) The A-bomb burst is seen
before the explosion is heard.
casualties
A-bomb
Major
(2)
Nuclear radiation from the
is likely to produce more
(3)
bomb
hysteria than casualties.
protective
The
measures
lined by the Board
out¬
fall into four
categories:
(1) Immediate measures
event of a surprise attack.
steps should be taken to strength¬
en
them.
The
AEC handbook,
Weapons,"
"The Effects of Atomic
suggests that "adding bracing and
or new transverse reinforced-concrete
walls would, in
general; be more feasible than
strengthening the frame."
j
(2) Wire glass, plus half-inchmesh
wire
screening
securly
nailed
to
window frames,
is sug¬
gested as a partial' measure of
in the protection against splintered glass.
Methods
conventional
for
used
protection within bombs, such as pasting muslin
existing facilities.
over the surface of the glass, are
(3) Advance planning in new ineffective with the A-bomb.
plant construction.
(3) Blast walls of reinforced
(4) Over-all shelter protection. concrete 12 inches thick and se¬
-
•
*'
pointed out that if a plant, cured to kegp from overturning
suffers a direct hit, little, if any¬ will be effective in reducing dam¬
desired.
the explo¬
sion is seen and
when, a split
second later, it is heard.
essential equipment such as
transformers, generators, etc.
age to
Protective Measures in
Immediate Action
The Board's
that
be told in ad¬
of Doors:
Do not look
con¬
are
miles from
three
least
at
buildings
new
vital
tar¬
gets.
(2)
Avoid extensive use, in new
construction, of bricks and other
loose facings, or large amounts of
vance:
(1) If Out
buildings
new
Locate
(1)
study reveals
employees should
Where
in the direction
of
which
glass
which will be indi¬
cated first by a sudden increase of
the explosion,
missiles
in
debris,
as
dangerous
become
the
blast,
to
serve
which,
and
the
block
streets at a critical time.
illumination.
reach shelter behind
f'(3) Vital above-ground plants
with combustible contents should
a tree, around a corner, in a door¬
be housed in structures without
way, in a step or two, do so imme¬
diately. Turn away from the light?? openings.
the general
will
If in the open
than
more
to the
not
a
ence
a
if shelter is
or
few steps away, drop
ground instantly.
minute,
means
therefore
is
at least
curled-up
10 seconds.
provide this protection.
Use fire-resistive design in
all new construction.
(5)
The
to the floor immediately
back to the windows or
with your
doorways.
shield you
due
to
the
Such
blast
wave.
It
may
against flash burn, but
against deadly radiation if
protect
not
action will
against splintered glass
etc.
you
within the lethal range.
Avoid windows
at least one
or
doorways for
minute after the ex¬
plosion, since<4he shock wave and
resultant
blast
effects
(falling
radiation
blast
American
the
the
„
and
citizens.
Board
Management,
help
points
these
will
and
out,
can
fears
and
short-cut
nese
In
clear
bombings.)
terms
of
at sea is the
radiation
from
an
it is
been announced.
Rus¬
blind
present foundry department.
tape.
Measures
Halsey, Stuart Group
Directors
and
stockholders
of
protective measures
be taken in J. B. Williams Company and Conti
Products Corporation of Brooklyn,
dealing with residual radiation as
it
affects
personnel,
food and N. Y., have voted to merger the
two firms. Williams, the surviving
water,
clothing, equipment and
list
The
of
also includes steps to
Offers G. & 0. Ry.
Halsey,
buildings as well as the general company, will acquire all the as¬
sets of Conti, makers of soaps and
plant area.
Shelter construction
(with provision for lighting, ven¬ shampoos, and contemplates the
eventual transfer of its operations
tilating
equipment,
first - aid
equipment,
emergency
to
rations,
Glastonbury.
a
These
and
measures
information
technical
further
are
devel¬
*
*
Hartford.
public welfare; the study will be
made available to the public by
are
unusual
to
in¬
be
acetate
of
an
maps
scale
held.
the
par
*
of Bristol
Division
The
Harris
&
Co., 523 West Sixth Street.
of 30
cents are being paid.
capitalization would con¬
Kirkpatrick-Pettis Adds
(Special
of Business
Water
Loomis
000 of first
series
authorized
has
Company
mortgage 2%%
interest
3.90%
year.
be
a
to
used
bonds
ally Sept. 1, 1951, to Sept. 1, 1965,
Issued under the Phila¬
the
staff
Omaha
of
1962
at
the
in
IN
the
of
rate
series
Connecticut Securities
the
4%
A
of
amount
TlFFT ltllOTIIERS
Established
1907
Members
New
York
&
New
York
Curb
Boston
Stock
Exchange
Hartford 4
9 Lewis St.
At the request of the Navy
the
and
New York: BArclay 7-3542
Tel. 7-3191
Hamilton
Exchanges
(Associate)
Bell Teletype
HF 365
and the Pratt &
Commerce Com¬
prices
to
yield
from
We
maintain:
turity.
from
the
sale
certificates will be used to
following
Primary Markets
of the
provide
in
standard-gauge
Connecticut Securities
railroad
CHAS. W. SCR ANTON & CO.
King Merritt Adds
to The Financial
MEMBERS
Chronicle)
CLOUD, Minn.—Donald
YORK
NEW
New
York:
REctor
Bridgeport
2-9377
1
STOCK EXCHANGE
Haven
New
i
E.
K.
of
Hartford and
The proceeds will
call
Plan, the
1.50% to 2.625%, according to ma¬
ST.
Howard
MARKETS
PRIMARY
bonds
Stuart & Co. Inc. and
are
offering $3,570,000 $200,000 and to pay bank notes
The bal¬
Seaboard Air Line RR. equipment amounting to $250,000.
ance
will be used for new plant
trust
series H
2%%
equipment
additions.
trust certificates maturing* annu¬
*
if
(Special
—
joined
1975, and a
promissory note in the amount of
$200,000 payable July 1, 1953, and
Halsey,
atomic
has
Noro-
associates
the
Neb.
Kirkpatrick-Pettis
Co.,
Bank Bldg.
to sell $450,-
A, due July 1,
bearing
for
Financial Chronicle)
The
National
Equip. Trust Gtfs.
Proceeds
to
OMAHA,
The Connecticut Public Utilities
Offers Seaboard Air
at
Financial Chronicle)
ANGELES,
Cal. — Neil
Crane is now with Harris, Upham
of
Halsey, Stuart Group
mission,
an
$6,-
LOS
capitalization
present
Commission
Interstate
of
Upham Adds
(Special to The
of
new
cost
sist of 250,000
ton
of the
estimated
772,462.
Brass Corp.
"Executive Planning
ly dividends of 20 cents.
A-Bomb Falls," was pre¬
*
*
*
Board's
freight locomotives and
a
shares on which di¬
rectors anticipate paying quarter¬
Ballinger
in part, the purchase of
if
150,000 shares of $10
stock on which quarterly divi¬
dends
Practices.
Line
finance,
of February.
to call
The
consists
this acetate sheet
R. Maxil
Aug. 9 on its bid of 99.3843.
The proceeds are to be issued to
tional shares for each three shares
The study.
the
on
special stock¬
of
August to vote on a proposal to
pay a stock dividend of two addi¬
ity.
by
Com¬
sixteen transfer locomotives at
Directors
management can then judge
the effects of a possible atomic
blast on their plant or commun¬
pared
is build¬
Windsor and
holders meeting the latter part
and
—If An
Interstate
nine road
have voted
air burst and an
explosion.
Local
as on
the
aggregate
(detonation,point) of
be photostated to
may
same
by
Commission.
The certifi¬
cates were awarded to the group
full
atomic
underwater
ization
merce
company
*
fire, blast and nuclear
at given distance from
zero
1, 1965, inclusive.
the latter part
report is an
insert sheet showing the
the
in
cluded
both
device
to Sept.
1951
1,
*.
plant in
new
serial
to
move
its operations
from one of the present plants by
Dec. 1 and from the other during
associates.
An
a
2%%
$5,370,000
They were priced to yield 1.40%
to 2.625%, according to maturity,
and issuance is subject to author¬
1, 1965.
expects
Normally, the Board's
distributed only to its
the Board.
studies
ing
The
Aug. 10 publicly of¬
of Chesapeake &
$179,000 semi-annually from Mar.
stock and
in a forthcoming
Taylor and Fenn Manufacturing
to be released by the
the
interest of
the Company has sold its plants in
In
Board.
Ry.
and
issue
Ohio
oped more fully
study soon
an
Eq'ts.
Inc.
Co.
&
equipment trust certificates, to be
dated Sept. 1, 1950. and to mature
little less than $600,000 of deben¬
ture bonds due June
on
fered
of
50,000 shares of
common
Stuart
associates
Stockholders
Conti will receive
drinking water and other neces¬
J. B. Williams
sary
facilities) is also discussed.
noted, protection
may be- gained in taking shelter Martini is with King Merritt &
immediately behind some struc¬ Co., Inc:, 1616 St. Germain.
explosion,
by Hartford-Empire Co. has
The plant, which
is located at Stonington, will be
reconditioned
for
production of
plastics and other products.
Em¬
pany
elastic
webbing at West Columbia.
safest."
Precautionary
Other
.
the immediate nu¬
Purchase of the Atwood division
sell
equipment estimated to
panic that might add
cost approximately $4,783,511:
14
significantly to the confusion and 1000 h.
p.
Diesel yard switching
loss of life.
(Deaths from nuclear
locomotives; 500 70-ton all steel
radiation accounted for only about
covered hopper phosphate cars.
15% of the fatalities in the Japa¬
wholesale
$4,000,000
debentures,
plant of Universal Winding Com¬
Wide
produced at
narrow
Air
Force
certificates are the
being offered, subject to approval Standard division
effect of
received
has
fund
recently opened its Bennettsthe radioactive
ville, S. C., plant, which is being
Deep burial in the ground
used
to
manufacture
Venetian pire will continue operation of the
of
disposal
delphia
Are
has created
widespread fear in the minds of
publicity
allay
Crawl underneath a desk, table,
counter,
nuclear
atomic
an
(2) If in a Building or at Home:
Radiation
"Overemphasized"
position
The im¬
of
sinking
pro¬
yarns.
be
tape
Middletown
inclusive.
Effects
most
open
with¬
of
Underground construction or con¬
crete walls two feet thick would
mediate danger is then over.
Drop
capable
Curl
and attempt to sha-'e bare
arms, hands, neck and *are with
your clothed body.
This will not
protect against initial nuclear
radiation, but may help in reduc¬
ing flash burn.
for
structures
in
to
company
larger proportion of its re¬
elastic
im¬
portant
that
arrangements
be
made prior to decontamination for
industrial plant should be housed
standing the blast at about half a
mile from the point of explosion.
up
your
an
A second,
the defer¬
between life and de^th.
Hold
equipment of
fire
The
a
it from one place quirements of elastic
it only transfers
to
another.
It
'
(4)
the
enable
duce
If you can
and crouch.
4%
has
objects of radioactive particles if
does not destroy this radioactivity;
ground
templated, some of the advance
protective measures include:
of
Russell Manufacturing Company
body."
radiation
New Construction
*
*
due July 1, 1965.
*
*
*
purchased the physical assets
It is pointed out that there is
Grip-Tex
Manufacturing
of
Cheney Brothers of Manchester
Fall River, Mass.
one
fundamental that must be
The equipment is one of the
companies that has
understood in regard to any at¬ will be moved to the main plant been selected
by the Air Force to
at
Middletown
and
to
the new
tempt to reduce residual radia¬
produce
parachutes.
Production
tion. That fundamental is: "When branch plant at West Columbia, will
begin as soon as possible.
South Carolina. The new facilities
if
if
if
you
rid
surfaces,
clothing, or
effects
between the time when
announces
the private placement of
*
It is
thing, can be done.
However, the
Board points out, many lives can
be saved outside
the immediate
blast area in the
short interval
division
craft will expand
hol¬
of
or
Advance
(2)
its
to
period of time or if
radioactive particles should
wastes.
and Factory
existing structures, some
of the protective measures which
may be taken include:
(1) An analysis of the structure
would reveal the weak points, and
exposed
are
to
As
shoring
result from fire.
personnel
effects over a
the
Protective Measures in Office
experience
Since
blast effects is
a
Aspinook Corporation
if
enter the
emphasized that the atomic-
It is
-
of United Air¬
their production
low
filament
type
rayon
yarn, of propellers and motors. Opera¬
takes place, this action may save
known
as
Featheray.
The out¬ tions have been placed on a three
lives."
standing feature of the new yarn shift schedule, seven days a week
Residual radiation, "though not
is its light weight and softness. and employment will be gradually
an
immediate problem, may de¬
Increased orders have
The diameter of this cylindrical increased.
velop
after
the
explosion.
It filament is about 2V2 times the been received for both the Wasp
occurs after the blast effect, flash
normal for a similar weight yarn. Major piston engine and the J-42
burns, and initial nuclear radia¬ The new yarn is believed to be turbo Wasp, a jet engine.
tion have taken their toll.
Re¬
a«
*
particularly valuable where ex¬
sidual radiation is dangerous only treme fullness and a soft fabric is
the
many
;
Thursday, August 17, 1950
.
.
Whitney
Rayon Corporation has
Hartford
developed and is marketing
blast
the
from
destruction
total
Fear of
in new construction.
rad.a.*on efLc.s has been overemphasized.
facilities and advance planning
*■'
.
Connecticut Brevities
mately 4,200 feet) is greater than
the half-mile distance in
which
protection in existing
surprise atiack, advance
cover
pile of dirt within the
the atomic flash.
lethal range (approxi¬
a
"Since the
In Event of A-Bomb
Measures
or
second of seeing
How to Protect Yourself
;
and Financial Chronicle
(632)
»
Danbury
6-0171
Teletype
N& 194
New London
Hartford 7-2669
Waterbury
Volume 172
Number 4934
"
Observations
-(633)< 13
The Commercial and Financial Chronicle
.
..
on:
visory- Council, " whose member¬
ship
currently
includes
many
businessmen
:
areas,
con¬
tion of how
1
be
trol
Economic Mobilization
!
time
the
>
of
Pearl
Harbor,
industries
economy
faster
fact
are
turnaround
that
the
similar
the
to
Mobilization
need
full
have
not
a
operating
to
program
can
freeze
over-all
It
Plans for these
al economy, at
its high level
keep coordination of policy and
effort, particularly if direct con¬
trol over the priority power and
of
critical items.
such
of
the nation¬
activity.
It
percentage
said
Such
"this is where
15% of
could
be
It
will
b
e
certain
materials, and controls are then in
order
because
buying power in
specific areas is sharply increased.
No war of importance is ever fi¬
nanced on a pay-as-you-go basis.
It's possible to envision an "in¬
flationary gap" of $30 billion in
tions, and not
recommenda¬
tions.
They
intended,
are
however,
t o
help in some
way
Leon
Henderson
the
as
basis
of
Mr.
individual
judgment.; It
is
hoped
of
sent
guides
some
the
jewelry
decision
how
the
to
pattern
members
the
involves
factor
guess as to
a
in
national
future
life.
A
good rule today is to consider do¬
things
those
ing
would
done,
all-out
which,
not
disaster if
cause
effort
if
an
required.
were
There will be time for other judg¬
One
happen in mobilization?"
thing seems clear: the pat¬
tern
is
ing
to
seemed
it
months
if
as
tax
new
no
weekly.
changing
would
there
be
bill until the last two
1950
of
Earlier
first
the
or
two
months of 1951. Earlier the Presi¬
did
dent
control
wage
cision
ask
not
be
to
price
for
authority.
made
and
The
is
now
de¬
to
as
type of such controls, and specu¬
lation
to
as
when
will
they
be
Determination
to how
as
great
will be the military program
lie
not
entirely with our govern¬
Russian potential of choice,
ment.
well
as
does
as
actual
her
of
course
factor, and it
is to her advantage to keep the
United States off balance, while
action, is the main
we
using
are
precious
up
re¬
Jim
#Forrestal
used to
long one." But just as in 1949
and
1941 there was no outright
a
declaration
of
the
war,
pro¬
gramming today is conditioned by
many
uncertainties. The admin¬
istration
evidently
risk
calculated
not
has
that
taken
Russia
a
will
provoke all-out war.
As
basis for appraisal of
a
the
impact of mobilization on the na¬
tional
that
up
economy,
the
or
Korean
can
matter
assume
will
use
cripple most of our present
for
reserve
use,
we
potential
that
Formosa
ground
and
air force
hot spots
like
of
require hasty prepara¬
new
pools of such re¬
sources,
for
require
at
the
to
Stuart
Symington, early in July.
Earlier
before
elers
15,
paper
battle use. This will
least $35 billion ex¬
presented
by Mr.,Henderson
the American National
Association,
New
Retail
York1 tify,
1950.
.•
who
Chairman,
had
NSRB
life the
its
in
prepared an Emergency Mobiliza¬
tion Plan—1949, but it did not fit
the Korean emergency of 1950. As
result,
the program will
be
piecemeal, with many
in format. This is
not
These
Jew¬
Aug.
ing
Since
will
time,
on
rubber,
and
benzene
related
perhaps
some
re¬
manufactur¬
stages from
Also
down.
controls
selective
the wind.
some
in
are
reduction
of the
executive
in
demand
on
,repealed after the end of World
War II. A good example is the
control of exports.
the three sets
despite refusal by Con¬
to grant control over certain
Taken
together,
individual
for
is readily possible.
Witix few exceptions, the markets
shortages
withsto
have
we'l.
ders
u"?b>e
soon,
on
or¬
If there
are
shipments.
in
automobile
the
consumer
commitments
construction
slew
of
rate
sumption
of
without
undue
are
reduced,
increased
in
metals
months
several
could
the
strain.
Steel,
now
about 20%.
uses
Overall
nine
fibres
physical supply of practi¬
all
items
and
of
food,
chemicals
is
metals,
supply,
months,
will
for
College.
organization
and
by military demands. It
important to keep this point in
orderly imposition
of civilian
buyers. In addition to
inventory-7engtbening by business
Continued
on
page
$5,600,000
the Munitions Board have helped
to form
committees,: but
small percentage of these
industries
only
a
be
for consultation
called
months..
the next few
.
Maine Central Railroad
Company
in
Equipment Trust of 1950
,
Above all,
only five years have
elapsed since the last "garrison
state," and more personal knowl¬
edge of techniques and mecha¬
2Vi%
Equipment Trust Certificates
(Philadelphia Plan)
nisms is at hand.
choice
The
to
date has been
to
peace-time agencies, such as
Departments of Labor,
In¬
use
To
To be
Agriculture
and
Com¬
merce, for operation of the new
controls.
It is likely
that these
control functions will be operated
independent of regular depart¬
mental duties, so that the emer¬
functions could
readily to an
gency
ferred
be
trans¬
emergency
top-authority, if occasion required.
The likelihood,
too, is that the
occasion will so require. Priorities,
limitation
lead
to
set-aside
and
scrambling,
Issuance and sale
to
on
each September 1, 1951 to I960, inclusive
Yield 1.65% to 2.75%,
dividends by endorsement
according
to
maturity
by the Interstate Commerce Commission.
which this announcement is circulatedfrom only
lawfully offer these securities in such State.
of these Certificates are subject to authorization
Offering Circular may be obtained in any State in
such of the undersigned and other dealers as may
orders
and
$560,000 annually
guaranteed unconditionally as to payment of par value and
by Maine Central Railroad Company
Priced
The
mature
HALSEY, STUART &. CO. INC.
scram¬
bling leads to price increases. Un¬
the
less
modity
planning
lines,
functional
along
is
instead
lines
as
in
com¬
of
In
be
the
necessity
the
recent
for
&. CO.
F. S. MOSELEY
&. CO.
early
considerable
stages
there
reliance
on
HARRIS, HALL &,
OTIS & CO.
H. M. PAYSON &. CO.
FIRST OF MICHIGAN
in¬
FREEMAN
dustries whose products are being
such
anticipated
Better
&. COMPANY
WM. E. POLLOCK &. CO.,
in
this
McMASTER HUTCHINSON &. CO.
performance
committees
can
CORPORATION
will
dustry committees, from those in¬
from
COMPANY
I
(INCORPORATED)
(INCORPORATED)
KEAN, TAYLOR &. CO.
emerge.
the
PRESSPRICH
the
over-all
policy making and umpiring will
war,
R. W.
be
emergency,
with the help of the Business Ad¬
August 17, 1950
next
greatly
the
not be
mind, because the degree of con¬
trol will depend upon the actions
is adequate
of the
new program on a high-level ci¬
vilian production. The recent in¬
crease in program could mostly be
an
the Army Industrial
important
for
pacity for military needs now, and
a year may pass before 10% is re¬
quired.
Auto
production alone
with
representative
next
example, uses only 2% of its ca¬
those of the Munitions Board and
all
con¬
handled
be
control. It has its own studies and"
; Symington's
and
goods industries
forward
ana
new
the
curtailment
low in relation to
were
and
cutbacks
for
fairly;
pressure
big rush, Gf course, has
increase plant inventories,
been to
which
c
d
The
affected
The
cally
for
of powers,
general shortage oc-
substhu.ion
s
cu
Supply
pool contains those
individual minerals and metals
because until
sions.
second
analysis suggests
no
ply is required, and this is more
in.portant than details of the drain
of
credit, a tougher policy can be
expected in credit controls. As of
now, the prospect of food price
and rationing controls is dimmed
by congressional limitations on
price freezing, as well as limita¬
tion on the sale of surpluses of
commodities below parity provi¬
from
expected
special measures which were not
gress
a
an
of
orders.
The
for
autos, appliances, homes, etc., are
in
before Pearl Harbor by
scanty
are
contains the ex¬
powers
on
price
emergencies.
extensively utilized
were
of allocation power
be
Yet
complete allocation of sup¬
a
made,
were
War II experience
World
of
which
studies
torical
various
of
act
cases.
with
dicated,
in addition to the au¬
The first pool
that
capture of excessive inventory at
cabinet
departments
and administrative agencies
nec¬
fatal; provided the next
step ahead is planned. The NSRB
has available the excellent his¬
essarily
allocated.
*A
is
ferred
which
under declaration
implicit
soon
requires
another
substantial
stockpile of armament already ap¬
proved
power
to
and that the longer view
tion
of
"If terior,
say
want a short war, prepare for
you
pools
President
the
sources.
related
are
re¬
wages,
plicit and
will
put in force.
and
focused
metals.
products, and some metals receiv¬
ing first attention. Some type of
inventory ceilings are plainly in¬
rationing, etc.
We should not lose sight of two
prices,
use
electronics,
authority to the Chief Executive
to control the flow of materials,
to
which
power,
shifts
Everyone is asking "What's go¬
Re¬
been
mobilization planning, were trans¬
developed
General
Security
Board's
has
to be
sources
,
limitation orders
with
by debate in Congress on
legislation granting
direct
thority
authority
National
sources
a
ments.
new
emergency,
Control
The
greatest
Organization for
of
large the defense effort will
bulk
Government
industry.
Obviously,
in
when
cently
available
mobilization is clearer, to pre¬
later,
The
experienced
power
in most
probably
Controls
Attention
has
seems
by example,
to control, and
show,
other
cause
dislocation.
Most estimates by re-;
are agreed that
the new program will make its
greatest imprint on minerals and
the example will be suffi¬
cient
Harriman.
Averill
other
1951.
of
year
the
and
of
precentages
calendar
the
minations,
it
hopes
Security Council for policy deter¬
stantial
a-
v
r
Security
the
in production. But the
15% bite translates into more sub¬
contain
s
decisions,
National
that
Resources Board and the National
and step-up
following
o
President will make the
utilizing
ly over the economy, it could be
easily absorbed through diversion
be
noted that the
pages
might require
national produc¬
program
top agency
a
to
an
the
Me.ais:
;
sponsible
already under
The Administration
planning
de¬
armed force of
ould not
s:
than spotty
way.
retained. Until
is required, the
are
tion, but if this were spread even¬
left off."
we
a
our gross
requirements
a
in
shift
a
fabrics,
of
of even
2.5 million
to
are
Beyond
types
mands
will
be
spent
for
"housekeeping"
and
more
for
"hardware," which means a bigger
drain on metals,
materials, and
saying of the
gingeriy use of those prod¬
Clothing:
agency
months
are
consumption
ucts.
which
would
require
build, plus control of
high profits through excess profits
tax
and
contract
renegotiation.
re¬
of
because
rent
more
as
enforcement
-
under
men
vast supplies to
foreign countries. And hoarding
ironically reduces the rate of cur¬
send
and
some
administrative
an
million
feed
arms,
necessitate
would
sponsibility, if it has central au¬
thority. It can use clusters of re¬
lated operating functions, and still
Many people
to
be carried with the
help of indirect controls, such
Tnere is no present
we will need again
up.
indication that
selective
with
proceed
in the next year, of
which $20 billion is new. But of
the new expenditure, a smaller
present emergency "this is where
we came in."
As far as the state
to
and
penditure
Introduction
steppeu
heavier taxes, bond sales, and ex¬
hortation.
It is
argued that an
War
year.
unlikely
seem
total supply in sight
than the nation is likely
consume, ana could be readily
to
immediate
of
cutbacks, evidently
feeling that the burden of the new
is
hysteria, how-5
current
The
Food:
of controls.
use
freeze
controls
Reconversion
within
indicated
seems
of
Office
and
to
as
advocates
now
often carried too far. Some agency
ot
is larger
prevail. The Administration plans
very
operations
for
The
over-all
are
super-agency
tenuis
ever.
.
prepared for
and
lew
results
available
most of
heavy
increase in im-appraisal must wait
to take note of the
a goou
a
correlation
anaylsis"
and
good results in predicting
futures
involving many factors.
No
such
tool
of
forecasting is
operating at
capacity levels argues for faster
delivery schedules.
The
argument
for
a
single
they
pons;
"mul¬
use
through expansion
of
care
the expected
obtain
which
on
extensively they will
Statisticians
used.
quesr- and
the
answer
tiple
at the
of that existent
burdens will fall
be¬
cause of current
crisis, former OPA chief foresees probable
cut-backs and quotas in automobiles and durable mechanical
household appliances, because of war armament expenditures.
Says, however, military demands, if not increased beyond
present scale, can be met from expanding production. Looks
for stingent credit controls and warns longer roll-back of prices
is delayed, the more difficult it will be to implement it. Finds
present supply of food and raw materials adequate.
all-out freeze of the
,
Another factor to be considered
falls short
of
not anticipating
experience.
conversion. While
the present state of preparedness
Research, Jewelry Research Foundation
Formerly Head, Office of Price Administration
Although
war-time
is the speed of
By LEON HENDERSON*
Director
with
taken
embrace plenty of author¬
ity, but do not
INC.
33
14
(634)
The Commercial and Financial Chronicle
with income
about
Buying Power of Investment In¬
with figures for every year
from 1930 to 1949, with compari¬
sons
of
income
resulting from
the Dow, Jones
$100,000 invested in Broad Street
not far be¬
commons
hind at —7.91%.
N&PONAL
St^CK Si
Action
For
your
from
from
request
upon
investment dealer,
or
SEC
NATIONAL
SECURITIES
&
full
CORPORATION
BROADWAY, NEW YORK 5, N. Y.
the Securities and
was
The
result
a
labor
will
recently released
Policy prepared by
of
mission.
which
the
to
Statement
Exchange Com¬
nearly
exhaustive
and
which
Statement,
of
Bullock Fund
Nation-Wide
Securities
self,
into
any
review
Dealers
who
members
are
the NASD^must file
well
literature
as
Investment
Dealers
ton.
too, regards the literature
lative,
The
their
the
dealer
decision
Lurned
have
or
to
over
as
must
vio¬
the
pos¬
which
is directed to dealers only,
unless
such
literature
sales
of
will
the definitive criteria set forth by
the Commission.
As one example,
the
term
now
considered objectionable, and
it
inquire
have
will
averaging"
/"dollar
like
to
be
replaced
"dollar
cost
is
by
averag¬
ing," to which the SEC does not
at the present time object.
ahum-
The
Statement
interpreted
only be
SEC desires
the
as
can
that they be interpreted, since the
and phrases are by their
words
Investment
nature completely vague.
phrases like "mate¬
very
Words and
Fond
A Series of
New
York
Slocks, Inc.
rially misleading," "imply," "any
factor
necessary
to
make
the
comparison fair," "may be vio¬
lative," "literature designed to be
employed,"
and
the like,
will
certainly
with
clarification
necessitate
respect to specific pieces of
material
and
other
available
investment
dealer,
descriptive
from
or
your
local
from
Welch, Executive VicePresident of Wellington Fund and
Joseph
member
a
of
and
Company
mittee
the
in
48
Wall
Street, New York 5
CHICAGO
LOS
ANGELES
and
do
can
and several
Statement
aration
eystone
of
the
do."
cannot
we
however, that some
will be necessary,
clarifying letters
list
the
was
Participation in
INVESTMENT FUNDS
be
preceding six months and two and
general
in
American
the
or
of
all
lost
Net
be
for
ground
month
low-priced
tributed
security
profits
$1,464,-
were
from
over
last
net
a
of
year
security profits
are
dis¬
at
the
shareholders
to
the fiscal
of
end
may
of
spectively
the
at
since
year.
Street
Tells
Broad
June
prices
prevailing
high of last
12.
High-grade bonds
only slightly off at —0.28%.
come
off
preferreds,
—1.47%
however,
and
were
In¬
were
speculative pre¬
ferreds —2.55%.
Street
Broad
"The
Income
Sales'
pamphlet,
Story of Income" is particu¬
larly
timely
today,
investor's
when
contains
pamphlet
High-Grade Commons Off
commons
should
Dollars Are
"Why
Funds,"
"How
Invested,"
We
booklet,
a
Your
folder
a
on
Mutual
Recommend
a
The
prospectus,
a
entitled
"Factors
and
Information About Knickerbocker
Fund," which
includes a brief
history of investment companies,
a
chart illustrating
bull market
intermediate
corrections
and
a
table
comparing its behavior dur¬
ing the Korean outbreak with that
of other funds. (Its performance
considerably better than
was
All
erage.)
tucked into
as
handy
this
of
av¬
material
is
open-end envelope
an
wallet.
as a
In order to
demand
Group Analyzes
satisfy the investors'
information
for
stock
behavior,
a
seventeen
and
on
war¬
Distributors
table show¬
ing percentage changes
of its five
Industry
Classes for five separate time pe¬
riods
from
May
changes
net
September,
The
1946.
29,
1939
with
compared
are
to
percentage
the
changes of Dow-Jones Indus¬
trials
the
over
same
time
period
showed
The
pam¬
phlet contains four well-designed
Wain
E.
Hare,
of Hare's
Ltd.,
pamphlet
on
Protection"
Vice-President
reports
that their
"Purchasing
is
ingly popular
becoming
Power
increas¬
with dealevs.
The
charts illustrating the cost of
living increase (and its reciprocal,
cover
the
statement, "Money being solely
lar),
purchasing power of the dol¬
the dollar value and "real
for
high-grade
bonds,
preferred stocks and Broad Street
out
Shares.
well
The
Fund
of the
means
income"
any
of
pamphlet carries the
exchange,
its
a
value
at
time is simply the amount of
Continued
on
page
30
top in capital
performance and income. In addi¬
comes
the greatest arrearage at —8.60%
dollar.
Pamphlet Stresses
Purchasing Power Protection
new
bar
Investing
High-grade
kit
Hare's
of
Story
By the first of
market
organ¬
and
analysis.
the
medium-grade,
speculative bond
over
stock
well
as
talk
some
recov¬
the
and
sales
give dealers strong support.
funds
ago.
year
carrying
loss
Available
Ilighs
that
a
of
com¬
$239,349 there remains $1,225,505.
its lat¬
have
of July 31
months
After
value
asset
as
realized
eight
sharp market dip precipitated by
this
is
sales
a
Group has prepared
net
year
pared with $3.61
these
of
in
disclosed
securities
which
as
time
854.
Company,
analysis,
ered
Business Shares, Inc.,
$3.95 per share
so-called
may
process
Popular
six-piece
fiscal
Bond Classes At New
classes
Knickerbocker's
reports for the third quarter of its
realized
est
Kit
War-time Stock Behavior
Asset Value Rises
Keystone Analysis Shows
Keystone
Fund
Sales
American Business Shares
conferences.
new
Knickerbocker
Distributors
still
that
industry cir¬
opinion
the
3.59%.
one-third times that of July, 1949.
conferences
cles that the Cashion
Wiesenberger
the
for
rate
ques¬
is
forthcoming
It is conjectured in
in
monthly
this important ques¬
on
future, after further
with industry.
scuttled
the
v/as
policy
It commented
tion,
there
is
on
table of
a
Annual
27
THE MARKET SINCE KOREA
section
was
A,
dealer
a
which deals
[Editor's note: Full
june 12
-
10
august
o
ratio of dividends paid
income
here
text
This section specifies that "rates
of return shall be expressed .only
investment
(percent gain or loss
with
mutual fund
on
-
net
-
thought,
of the
Statement
of Policy is
given on page 15 of this issue of.
"The Chronicle."]
a
IN CLASSES OF SECURITIES
-
Most important from
standpoint, Mr. Welch
as
investing tkeir capital
will
of
material.
the rates of return
Certificates of
decision
tion
which apply to the prep¬
and distribution of sales
shares.
Funds
a
literature
study.
by the public in July
with
-
Custodian
institutional
chased
the
have to be issued by the SEC.
Most characteristic of the new
"dont's"
with regard to the use of
under
years.
Dollar volume of
Manhattan Bond Fund shares pur¬
twice
future Commission
of
monthly record for the past
a
three
pros¬
the
Fund
the
of
+ 0.18%, +0.76% and +0.58% re¬
what
interpretation
that
Bond,
July, 1950 sales
shares
com¬
preparation
He remarked,
noted
were
Dealers'
commented that
he
hope for the new pol¬
"For the first time," he said,
in industry know what we
"we
tion
SEC
set
orally
to
Manhattan
of
for
volume
is obviously
on
Inc., in¬
that date
on
revealed that the
sponsor
writing or shown
pective customers.
The
derwriters
material
passed
July
price increases have again cut into
every
icy.
be
in
classes showed fractional gains of
Statement,
had
is
material
to
definition
the
turn
ized
collaborated
which
SEC
INCOKPOKATEU
with
with the Dow, Jones Average's re¬
matter
Fund
Asso¬
National
the
ciation of Security
Hugh W. Long
the
literature
the Korean crisis.
sales literature.
Prospectus
in
in
or
with
studded
is
"weasel words" which
D
sales
originating
have to be scrapped as a result of
terms
included
designed
Tons of papers and thousands of
normally
$33,121,365.
In addition, Hugh W. Long and
Company, New York, national un¬
prosecution.
Not
turn
fast market-
as
Bond
Total net assets
case
for
the SEC
to
way
stable
vesting only in bonds, reported
the highest total net assets in its
12-year history oh July 31, 1950.
accept
new
and
their
on
instance,
Manhattan Bond Fund,
may
of
dealers.
com¬
Speculative
Sets Record
appeal
committee, and if it,
NASD
an
dealer
sible
pieces
Established 1894
Manhattan
Statement, the dealer will be in¬
governing the prepara¬
handling of investment
company sales literature by issu¬
ers, underwriters and dealers.
showed
Ray Moulden of that office
will examine all copies, and if he
feels
they are violative of the
and
complete
and specula¬
—2.85%
the Dow, Jones Industrial
as
av¬
outperforms
every year.
Re¬
in 1949 is 5.02%, compared
Street
broad
the average lor
commons.
for
Investing and the Dow, Jones
erage.
kit is presenting investor reading
of
to
of
it¬
Average.
with the NASD office in Washing¬
tion
or
CALVIN BULLOCK
wise
personal sales letters to customers
at
about twice
move
their
as
strictions
kits-are
was,
come,
Appreciation
at —1.80%
commons,
copies of their
sales
formed.
sales
—8.30%.
commons
classes
of
revisions
from
at
abnormally
small
losses
pared to the other more
samples of sales literature,
sets forth a series of specific re¬
are
as
income and distributions from any
other source.
until
the
Policy Statement was
released, and now, in many cases,
available
off
commons
amount
one
Many Funds have held sales
promotion production in abeyance
Prospectuses
marketwise
speed
same
Industrial Average which
of
year
a
5,000
Dividend Shares
a
as
down
tive
are
literature
sales
conform
combine
operating at
the preparation of
in
steam
new
120
the
High-grade com¬
clss normally move up
distributions from net investment
After
Policy Released
funds
Mutual
RESEARCH
and
By ROBERT R. RICH
Funds Clear Decks
Prospectus
mons
Mutual Funds
Thursday, August 17, 1950
..
.
from
and
in¬
loss
AUGUST
ro
june
1
]2
percent gain
TO
august
1
prospectus from
ir
Thigh-grade
bonds
your
investmwit
or
-0.28%
PHILADELPHIA
Tmedium-grade
+
bonds
2, PA*
0.18%
ne+
earnings
percent
'
IN
accrued
cluded
BONDS
(Series B1-B2-B3-B4)
PREFERRED STOCKS
i
(Series K.1-K2)
COMMON STOCKS
(Series S1-S2-S3-S4)
Prosjrectus
may
be obtained from
Keystone Company
of Boston
f
50 Congress Street
Boston 9, .Massachusetts
in
the
price
of
capital
Tlow-priced
+ 0.76%
bonds
shares issued and repurchased, in
each
case
as
required to be shown
[speculative
+ 0.58%
bonds
Knickerbocker
in the issuer's prospectus (for one
or
immediately
more
preceding
full fiscal years senarately stated)
to both (1) a stated price deter¬
flNCOME
mined
[speculative preferreds"
by computing an .average
offering
prices,
taken
at
of
monthly
period
at
intervals, for the same
periods, and (2) a stated
offering price, current
date of publication, and
or
the
shall
be
ment
to
accompanied
the
effect
by
that
a
-
IFund
1.47%
-
for the
2.55%
[high-grade
commons
Safe-keeping of Investments
-8.60%
representation
of
commons
future
re¬
of
as
statutory
possibly vio¬
standards
to
obtained from
investment dealer describing
company and its shares, includ¬
your
-7.91%
the
ing price and terms of offering.
[appreciation
commons
-
1.80%
KNICKERBOCKER
20 Exchange
[speculative
commons
-
2.85%
1
r
It is considered
lative
Prospectus may be
[income
re¬
sults."
_
Diversification, Supervision ana
state¬
such
turn is based upon dividends paid
in the period covered. and is not
a
PREFERREDS
dated
and
Tke
undivided
THE
KEYSTONE
COMPANY
OF
BOSTON
Place
SHARES INC.
Volume 172
Number 4934
The Commercial and Financial Chronicle
...
supervision of management or in¬ aging" are not objectionable) in
vestment practices or .policies.
referring to any plan of continu¬
SEC Issues Code
Governing Advertising
Selling of Investment Trust Shares
And
ous
Protection
(e)
securities
and
institutional
to
investment company
advertising
Securities
and
Exchange
Aug. 14 made pub¬
on
lic a "Statement of Policy" with
respect to the use, form, and con¬
tent of sales literature and adver¬
tising
employed
dealers
by
and
underwriters in the sale of invest¬
ment company
This
securities.
Statement
of
Policy,
ac¬
Investors
or imply that
banking institutions as
custodian
of
securities, transfer
agent,
or
dividend
disbursing
agent, provide protection for in¬
vestors against possible deprecia¬
relating to
securities generally.
tion of assets
The
Commission
of
To represent
services of
"Statement of Policy," prepared after review of advertising
and sales literature, applies both to specific investment com¬
pany
(635)
or
of
issuers
the
to
cording to the SEC, was prepared cluded in this definition of "sales discussed.
with the cooperation of the Na¬ literature" only if such communi¬
Redemption
tional
Association
of
Securities cations are passed on either orally
(f) To state or discuss the re¬
or in writing or are shown to pros¬
Dealers, Inc., after an exhaustive
demption features of investment
review of some 5,000 samples of pective investors or are designed
company shares without explain¬
advertising and sales literature. to be employed in either written
ing in such statement that the
Dealers and underwriters engaged or oral form in the sale of securi¬
value of the shares on redemption
in promoting the sale of invest¬ ties.
may be more or less than the in¬
For the purpose of interpreting
ment company shares voluntarily
vestor's cost, depending upon the
submitted
the
material
for
the this Statement of Policy a piece of
market value of the portfolio se¬
joint examination and appraisal. sales literature shall be deemed curities at the time of
redemption.
The
Commission
emphasized materially misleading by reason of
that this "Statement of Policy" is an
implication, as contemplated
Comparisons Generally
directed not only at advertising herein, if such sales literature in¬
(g)(1) To represent or imply
and
sales
literature
relating to cludes (1) an untrue statement of
that shares of an investment com¬
a
material fact or
(2) omits to
specific investment company se¬
pany are similar to or as safe as
curities, but also at institutional state a material fact necessary in
government bonds, insurance an¬
advertising and sales literature re¬ order to make a statement made,
nuities, savings accounts or life
lating to the industry or to in¬ in the light of the circumstances
insurance, or have the fixed in¬
vestment company securities gen¬ of its use, not misleading.
come, principal, or any other fea¬
I* will be considered materially
erally.
tures of a debt security.
The question of future Commis¬ misleading hereafter for sales lit¬
(2) To represent or imply that
sion policy with regard to the use erature:
the management of an investment
Return
of general institutional literature,
company is under the same type
it is stated, is still under study, the
(a) To represent or imply a per¬
Commission
said.
this
A
on
question will be
the future, after
important
forthcoming in
with
conferences
further
decision
the
in¬
dustry.
The NASD has advised the Com¬
mission that it will assist in carry¬
Statement of Policy
as a measure of self regulation.
It
is
contemplated, therefore, that
the NASD, in line with recommen¬
dations of the Commission, will
interpret its Rules of Fair Prac¬
ing out this
tice to
of
conform
the
to
Statement
Policy.
The full text of
the SEC "State¬
Policy" follows:
ment of
SECURITIES
EXCHANGE
AND
COMMISSION
Washington, D. C.
STATEMENT OF POLICY
Securities
The
and
Exchange
Commission with the assistance of
Association
the National
rities
Dealers,
Secu¬
of
reviewed
has
Inc.,
samples of advertising and supple¬
mental sales literature used in the
sale of investment company shares,
much of which
was
this Commission.
existence
the
revealed
not filed with
This review has
of
many
practices in connection with the
use, form and content of certain
advertising
and
sales literature
which,
in
the
opinion
of
the
Commission,
may
curities
of
Act
vestment
violate the Se¬
1933
Act
Company
the
and
of
In¬
1940.
from
any
other
that
the
following
tempt to
cover
all possible abuses,
and that literature which
complies
not be
used if it is in fact misleading.
Conversely, nothing in this State¬
ment of Policy is intended to pre¬
with
this
vent the
Statement
use
may
of factual statements,
presented, concerning fun¬
investment policies and
objectives, investment restrictions
fairly
damental
or
other characteristics
of
a
par¬
ticular investment company.
"Sales literature" as used here¬
after
shall
be
deemed
to
include
Performance
(b) (2) To represent
that
an
or
imply
investor
Charts
a
stable,
an
ment
will
continuous,
investment company.
such
plan
a
investment
of
investment
of
in
the
companies,
each such transaction,
The
chaser
the pros¬
see
prospective
should
pur¬
these
measure
costs against the claimed advan¬
tage of the switch."
without making clear:
Industry Performance Against
Company Performance
(i) that the investor will incur
loss under such
a
plan if he dis¬
continues the plan when the mar¬
ket
value
of
a
his
accumulated
(q)
To represent
imply that
particular
be measured by or
or
the performance of any
shares is less than his
cost; and
company may
(ii) that the investor is invest¬ compared with or related to the
ing his funds primarily in securi¬ performance of a particular indus¬
ties subject to market fluctuations try unless the extent and
scope of
and that the method involves con¬ the
portfolio of the
particular
tinuous investment in such shares company is such that its
perform¬
at regular intervals regardless of ance will
generally approximate
price levels; and
that of the industry.
(iii) that the investor must take
into account his financial ability
Reprints
to continue such a plan through
periods of low price levels; and
(iv) that such plans do not and
cannot
protect
against
loss
in
value
in
<3)
.
the
declining markets.
To
use
tinuous
of
on
(r) To employ material in whole
in part from published articles
documents
lating
to
descriptive of or re¬
investment
companies
unless such material, or the litera¬
a
investment
table is based
or
table depicting ture including such material, com¬
plan of con¬ plies with this Statement of Policy
any
operation
or
unless
such
the actual offer¬
ing prices of the shares of the in¬
and
in
addition
such
material
not taken out of context in
ner
which
alters
its
is
a man¬
intended
includes meaning.
the total cost and liquidating value
vestment
of
the
each
company
investment
year
or
and
at
the
shorter
any
end
of
period
Fred Zahn Joins Staff
shown in the table.
.
(o)
sales
state
Of Marache Sims Co.
Sales Charges
*
To
fail
the
include
to
literature
(Special to The Financial Chronicle)
amount
in
any
does
which
not
or" rate
of
the
LOS
ANGELES, Cal.—Fred E.
Zahn has become associated with
Marache
company
over
a
specific
or
imply
to
NEW
out
risks
an as¬
record only and is under no circum¬
offering of these securities for sale, or as an
matter of
$500,000
Industrial
First
Stamping 8C Mfg. Co.
Mortgage 5% Sinking Fund Bonds
(With Warrants
ally have been selected
to
Purchase 60,000 Shares of Common Stock)
Dated May 1, 1950
Price:
Due November 1, 1967
100% plus accrued interest
of the Prospectus may be obtained within any State
the undersigned only by persons to whom the under¬
Copies
from
signed may regularly distribute the Prospectus in such State.
or
(m) To represent or imply that
explaining the
inherently involved investment company shares gener¬
in the investment.
PWfiRVWSSfa
by fidu¬
INCQBPO«>Trn
ciaries.
Government Regulation
a
an
ISSUE
;
pointing
as
solicitation of an offer to buy, any of such
securities. The offering is made only by the Prospectus.
.
market
be construed
offer to buy, or as a
modified by a letter
dated Oct. 25,
surance that an
investor's capital 1948, from the NASD to the SEC
will increase or that purchase of and a letter dated Nov. 4, 1948,
investment
company
shares in¬ from the SEC to the NASD.
volves a preservation of original
Management Claims
capital and a protection against
(k) To make any extravagant
loss in value. To discuss accumu¬
regarding
management
lation of capital, preservation of claims
capital, accumulation of an estate, ability or competency. v
(1) To represent or imply that
protection against loss of purchas¬
ing power, diversification of in¬ investment companies are oper¬
ated as, or are similar to. "co¬
vestments, financial independence
or
profit
possibilities
without operatives."
(c) To represent
stances
de¬
ESTABLISHED
1907
.
any communication
(whether in
(d) To make any reference to
writing, by radio or by television) registration or regulation of any
(n) (1) To use the phrase "dol¬
used by an issuer, underwriter, or investment company under Fed¬ lar averaging" or "averaging the
dealer to induce the purchase of eral or state authority without ex¬ dollar" (although the phrases "dol¬
an
continuous
shares
shares;
discuss
This advertisement appears as
Continuous Investment Programs
shares of
To
(j) To use any chart designed
to depict the record of an invest¬
source.
period of time which is contrary
forth a Statement of Policy so that
to the principles set forth in the
pendable, or liberal return or that
announcement
of
issuers, underwriters and dealers he will receive any specified rate Commission's
April 2, 1948, in Investment Com¬
may
understand certain of the or rates of return.
types of advertising and sales lit¬
pany Act Release No. 1160 and Se¬
erature
which
the
Commission
curities Act Release No. 3281, as
Safety of Capital
Statement of Policy does not at¬
pectus.
(2)
-
on
sales
from net in¬
vestment income and distributions
receive
emphasized
for details of which
of
com¬
a
of
in
investment
on
amount distributions
assurance
be violative of the
statutory standards. It should be
another, involves
level of the
charge
class
one
investment
Carley With.
it necessary
considers may
pany to
an
Sims & Co., 634 South
investment
restrictions or
is sales charge (excepting letters to
Spring Street, members of the Lios
operated under limitations similar shareholders, and business letters
Angeles Stock Exchange. He Was
investment
com¬
to or has fiduciary obligations such to persons which have been pre¬
formerly an officer of Fewel &
panies, except in accordance with
ceded or accompanied by an ef¬
as those imposed toy governmental
Co.
the following principles:
,
authorities on savings banks and fective prospectus, and communi¬
Rates
of
return
shall be ex¬
between issuers,
under¬
insurance companies, except to the cations
William M.
pressed only as a ratio of divi¬
dealers which deal
extent that it is so restricted or writers and
dends paid from net investment
limited by its statement of policy only with routine business matters
Link, Gorman, Peck Co.
income and net accrued undivided
and which do not purport to de¬
on file with this Commission.
(Special to The Financial Chronicle)
earnings included in the price of
scribe the characteristics of an in¬
capital shares issued and repur¬ Comparisons With Market Index vestment company) the following
CHICAGO,
111. — William
M.
chased, in each case as required
On Other Security
statement in a separate paragraph Carley has become associated with
to be shown in the issuer's pros¬
(h) To use ajny comparison of in type as large as that used gen¬ Link, Gorman, Peck & Co., 203
pectus (for one or more imme¬
South La Salje Street, members of
an
investment company security erally in the body of the piece:
diately preceding full fiscal years
the Midwest Stock Exchange.
Mr.
with any other security or medium
"There is a sales charge to the
separately stated) to both (1) a
Carley, who in the past conducted
of investment or any security in¬
investor included in the offering
stated price determined by com¬
his own investment business in
dex or average without pointing
price of the shares of this com¬
puting
an
average
of offering
Chicago, has recently been with
out:
pany (or name of company). For
prices, taken at monthly intervals,
Chesley & Co. and Webber, Simp¬
details thereof and other mate¬
(1) that the particular security
for the same period or periods, and
son & Co.
or
index or average and period
rial information, see the pros¬
(2) a stated and dated offering were selected; and
pectus."
price, current at the date of pub¬
S. A. Sandeen Co. Adds
(2) that the results disclosed
(p) To fail to include in any
lication, and shall be accompanied should be considered in the light
(Special to The Financial Chronicle)
sales literature which is designed
by a statement to the effect that of the company's investment pol¬
to encourage investors to switch
ROCKFORD,
111. — David
E.
such return is based upon divi¬
icy and objectives, the characteris¬ from one investment company to
Whitcher is with E. A. Sandeen &
dends paid in the period covered tics and
quality of the company's another, or from one class of se¬
Co., Talcott Bldg.
and is not a representation of fu¬
investments, and the period se¬ curity of an investment company
ture results.
Either in the same
lected; and
to another class, the substance of
text, or by reference in the same
Joins Paine, Webber
(3) any factor necessary to make the following statement in a sep¬
text to an
historical table else¬ the
comparison fair.
(Special to The Financial Chronicle)
'
arate paragraph in type as large
where in the same piece of litera¬
(i) To represent or imply that as that used generally in the body
DETROIT,
Mich—Herschel
C.
ture, there
must be shown the investment companies in general
of the piece:
Bearden is with Paine, Webber,
per-share asset value at the begin¬ are direct sources of new capital
Jackson & Curtis in their office in
"Switching from the securities
ning and end of the period, or the to industry or that a particular in¬
the Fisher Bldg.
of one investment company to
rincrease
or
decrease
(stated
in vestment company is such a source
percentage) in asset value.
unless the extent to which such
(b) (1) To combine into any one investments are made is disclosed.
centage return
the
shares
of
The Commission, therefore, deems
and appropriate to set
an
from
or
investment company at stated in¬
tervals
regardless of the price
that such institu¬
extent tions maintain
any
supervisory
they are transmitted to sharehold¬ function over management in such
ers and do not contain an express
matters as purchase and sale of
offer are not deemed to be "sales portfolio securities or payment of
literature" within the meaning of dividends or provide any trusteer
this definition but shall conform ship protection, or to fail to state
to this Statement of Policy. Com¬ the extent of the limited role of
munications between issuers, un¬ the custodian whenever the ad¬
derwriters
and
dealers are
in¬ vantages of custodial services are
Reports
investment in the shares of
another,
security of
15
plaining that this does not involve lar cOst averaging"
or
"cost
aver¬
115
BROADWAY
August 17, 1950
NEW YORK 6, N.
Y.
16
Financial Chronicle
The Commercial and
(636)
..
Thursday, August 17, 1950
.
$420,000 made with firm's London branch
Contract covering
enable
to
conversion
By H. E. JOHNSON
Additional operating statements for the first six months of the
have
year
released
been
by
of the
some
major fire and
casualty insurance companies.
While
underwriting results in most cases are not so
they were last year, profit margins are generally
Investment earnings, on the other hand, showed
as
satisfactory.
impressive
gains.
provement
have
increased
and
year
The
been
principal factors contributing to the im¬
larger volume of funds available this
the
distributions
dividend
equity
holdings.
This increase in investment income is
especially significant
historically it has been one of the primary determinants of
dividend policies.
With the gains shown so far this .year and
prospects favorable for fuither improvement in this segment of
on
as
the
business,
indications
that there
are
will
be
number
a
of
of
Prof,
of
div¬
idend
increases during the remaining months of 1950.
Among the companies to report operating results for the first
six months are the following:
branch,
London
firm's
the
extensive
will
be
able
to
its
foreign
Chloro¬
cur¬
not
Company
on
be invested
to
assets
cash
include
and
exports for Europe, South
and
the Near East with
create
Africa
machinery
or
effects
beneficial
consequent
equipment for the manufacture of
pharmaceutical chemicals. Parke,
oft
Insurance
Co.—For
the
first
half
the
of
current
of
Prof,
Aetna
reported premium writings of $28,810,446 up slightly from
$28,351,093 reported in the similar period of 1949. The un¬
earned premium reserve was higher by $1,351,740, and for the
the
months ended
six
HEINEMAN
ous
Sixty-five economists
30 premiums earned totaled $27,458,706.
premiums earned of $27,055,937 in the previ¬
the
during
1950
of these various
The net result
changes
underwriting
profit for the six months ended June 30, 1950 of $1,826,293 as
against $3,421,003 in the corresponding period of last year. Under¬
writing profits were equivalent to 6.65% of premiums earned in
and
12.64%
in
was
an
While
the drop in margins is sharp,
with a historical underwriting margin
for a selected list of fire companies of around 5%.
The improvement in investment income was modest, increas¬
ing from $1,112,503 in 1949 to $1,212,941 in the six months ended
1949.
the current figure comnares
Combined
similar
lower
gains
period
the
for
from
underwriting and in¬
thus totaled $3 039,234 and compared with $4,533,506 in
vestments
months
Net
Federal
1949.
of
underwriting
$1,470,000.
tax
liabilities
reflected
the
rnings and amounted to $1,040,000 against
profit for the neriod after taxes was equal to
ea
$1,999,234 in the first half of 1950 and $3,063,506 in the
able perod of 1949.
I
compar¬
GEORGE
HETCHINGS
WALTER
E.
of
the
increase in
the unearned
included in the total earnings
in
the six
of
premium
reserve
they would amount to $2.54
is also
share
a
1949.
all
NEIL
months
Paul
June
ended
Ffre
St. Paul
30
30
and
$3.57 for the
same
period
Marine Ins.
&
Fme
Co.—For
Marine
&
reported
the
months
ended
small
a
six
decline
in
net
premiums written
The total for the period was $21,795,906 as
against $22,801,319 in the corresponding months of 1849. The un¬
earned premium reserve was higher by $510,274 and $1,221,661 re¬
spect'^1"
Pr^i'-rr earned were sightly lower amounting to
States,
The
statutory
losses
upderwrtin**
and
results
investment
The
$541,273
or
amounted
1949
Korean
taxes
and
year
over
to
were
was
substantially
The total for
$1,773,477
fom
as
months of this
thus
increasing
months
with $1,232,204
in
amoun'ed
to
$3,897,705
and
for
investment
of
the
the first
half
before
of
almost equal to the $3,936,581 reported in the
1949.
this
same
profits, however, reduced the Federal
$1,148 047
year.
higher in
in
1949 to
$782,171
in the first six
The net income from operations after taxes
the
1950
period and amounted to $3,115,534
were
this
on
construction
and
addition
to
consu¬
finance,
existing monetary
Member, Brookings
Senior
CHARLES
Institute.
KINDLEBERGER
P.
Massachusetts
Prof, of Economics.
of Technology.
KUZNETS
at
National
Large,
of
Bureau
printing
restraint
together,
year
a*
be equal to $4.14
against $4.10
a
year
a
ago.
income
ex¬
instead
outstanding,
share in the six
be
may
be
must
Taxes
in¬
the budget.
of
construction
to
be
should
finance
existing
monetary
Payment of government
out of income instead of
thority.
protect the
country expenses
inflation and the printing press, and monetary
restraint on civilian consumption,
against the evils of aggressive together, can protect the country
tyranny," the economists said.
from
the woes of inflation
and
can
the / woes
from
In
the
the
business
professional
men
and citi¬
The unusual concerted
zens.
the executive
they felt the need to "speak uo
promptly and clearly" about the
risks
causes
the
Prof,
Prof,
H.
G.
of
dissension and dimin¬
to
work.
of
It
Vice-President
C.
of
Economics,
ELLIOTT
V.
"abomination
The
of
Rutgers
W.
economy
dation of the dollar."
But the
Asst.
the
is
and
the
of
text
names
of
of
military forces and supplies to a
much higher level for a long time
ahead.
Enlarged outlays for de¬
fense
superimposed on a boom
will, unless offset, cause inflation.
Inflation
is a
grave wrong
and
danger.
It hurts most the most
helpless members of society—the
widows, the orphans, the aged, the
dissension
diminishes the
so
incentive to
the
and
work;
productive system
impairs both economic and
It imperils eco¬
nomic stability and progress in the
peace for which we struggle. It is
an
unmitigated tragedy.
"The
suffer
power.
United
this
States
abomination
need
of
not
of'infla¬
J.
Bank
General
of
of
& Bradstreet.
Research, Dur.
and Eco¬
Oil of
Standard
N.
of
Economics,
Vice-President,
Second
BURGESS
Executive ' Committee,
Economist,
Research,
-
National
Bureau
•
National
Bureau
Statistical
International
Bu¬
Francis
Administration,
Emory
the
Section,
General
I.
Thorpe
was
&
du iPont
&
Co.
Mr.
previously with A. M.
Co.
and
Thomsop
&
McKinnon.
Industrial
of
H.
Thorpe has become affiliated with
COURT
T.
Chronicle)
Fla. —George
Kidder
Business
Director
JOHN
Gamble Co.
3:
Inc.
MIAMI,
University.
W.
The Procter
(Special to The Financial
Corp.
COLEAN
Motors
Economics
Corporation.
With H. L. Robbins
CUMBERLAND
Ladenburg & Thalmann.
Partner,
York.
Joins Waddell & Reed
of
£. S. COTTLE
ANDREW
President,
CHAMBERS
of
Life
Mutual
New
ZELOMEK
W.
reau,
Research.
The
of
CARSON
Consulting Architect
Prof,
Company
WRIGHT
WILSON
A.
Vice-President, Lehman
L.
Na¬
Yale University.
WOODWARD
B.
DONALD
J.
WESTERFIELD
BERT
RAY
York.
New
Research.
R.
MILES
J.
Corporation.
Motors
WATKINS
J.
BROWN
Director,
Economic
(Special to The Financial
Chronicle)
DAVENPORT
Editor,
military
TUCKER
S.
Economist,
Bank.
Economic
CLYDE
W.
Machinery & Allied
Institute^
Products
Co.
BURNS
Executive
;
pensioners, the annuitants, the dis¬
causes
of
F.
WILLIAM
"Communist aggression requires
men and women expand
C.
City
Director,
the
University.
Wayne
SIMMONS
L.
TERBORGH
GEORGE
RALPH
RANDOLPH
tional
that free
it weakens
Publishing
Dept.,
Chairman
the
United
the
SELTZER
Economics,
Insurance
unmistakable."
of
Commerce
of
Dept.,
Research
Economic
Director of Research,
Manager of Coordination
nomics
W.
University.
Indiana
SCHMIDT
P.
of
Continental American Life In¬
COURTNEY
signers in alphabetical order:
It
Committee,
Prof,
ma¬
Co.
BIGGS
ARTHUR
abled.
University.
Executive
the
Vice-President,
jor requirements to offset inflation
"clear and
R.
Oil
Finance,
Director
American
provide a very high standard
of living and a very large increase
in military outlay without degra¬
Following
Columbia
Co.
surance
"can
statement
of
LAWRENCE
BENNER
L.
President,
infla¬
SAURINO
SAUVAIN
C.
RUFUS
CLAUDE
the
Program,
Research.
Economic
of
Bureau
Director,
BELL
of
McGraw-HiH
America, they asserted, need not
suffer
Financial,.Research
of
Economist, Sun
Prof,
Chairman
Company.
SAULNIER
National
FREDERIC
Banking,
Trust
Banker.-
SACHS
States.
BE'CKHART
of
American
Economist.
Consulting
Jr.
Controller,
and
Company.
Vice-President,
Institute
ci
RIDDLE
Chamber
BAGLEY,
Prof,
Prof,
Rubber
H.
ALEXANDER
J.
Life
Re earch,
America.
Investment
Association
OTTMAN
H.
Hard
JACK
University.
H.
of
Insurance
ALLEN
so
B.
O'LEARY
J.
Director
Technology.
Assoc.
the
productive
system
impairs both economic and
military power.
It imperils eco¬
nomic
stability and progress in
the peace for which we struggle.
It is an unmitigated tragedy."
and
JAMES
Prof,
Carnegie
Economics,
Thomas & Thiel-
Naess.
NICHOLSON
L.
JOSEPH
Co.
&
NAESS
D.
Partner,
bar.
EMERSON
of
WILLIAM
of
Senior
H.
Swift
Agri¬
University.
RAGNAR
Columbia University.
Economics,
BACH
L.
Prof,
weakens
and
York
BENEDICT
ARTHUR
B.
Economist,
of
State College
University.
Finance, Research Director, In¬
International
Finance,
New
of
stitute
Head
ANGFLL
W.
Cornell
NADLER
MARCUS
University.
Rutgers
Economics,
York
New
culture,
AGGER
E.
of
JAMES
incentive
by
Eco¬
MYERS
I.
Dean,
R.
EUGENE
inflation.
of
Congress and
agencies."
adequate action
for
Committee
Director,
Development.
nomic
mists, urge prompt, persistent, and
move
made, the group said, because
was
National
Research,
Research.
of
MYERS
B.
Research
269-word
65
Institute
MOORE
Economic
of
HOWARD
its strength for use
joint thus conserve its strength for use
and against
the evils of aggressive
university economists spoke, not tyranny.
for their institution, but as indi¬
"We, the
undersigned econo¬
issuing
statement,
H.
Director
Assoc.
Bureau
of
Controllers
Director,
America.
of
au¬
Jr.
MITCHELL.
GEOFFREY
W.
Co¬
Statistics,
and
University.
WALTER
Prof,
added
MILLS
Economics
of
Prof,
lumbia
Adequate control
finance and
National
Chicago.
FREDERICK C.
over
First
(retired),
ViceBank
formerly
Consultant,
President
powers over consumer
press, and monetary
civilian consumption,
on
Economic
of
clear
is
There
creased, at once, to cover the rise
in expenditure fully and to bal¬
au¬
government
of
out
penses
the
of
LICHTENSTETN
WALTER
details, but there
the major re¬
over
none
quirements.
in
ance
"Payment,
are
equivalent to $3.89 in 1950 and $3.49 in
the earnings would
of
restraints
Adequate
mer
be
can
.
Adding the 40% equity in the increased unearned premium
months
differences
to balance the budget.
action
necessary
unmistakable.
and
in expenditure and
the rise
cover
tion."
share results
"The
Immediate increased taxation to
"It
six
On the basis of the 800,060 shares of capital stock
reserve
Confer¬
KAPLAN
Managing
diate anti-inflation steps:
ety," they said.
compared with $2,788,534 in the first half of 1949.
per
Industrial
National
Board.
H.
Director
(Aug.
of
higher
the first
compared
underwriting
The lower underwriting
was
D.
Company.
Giant
JORDAN
Institute
9) urged dollar. Failure to take action to
Congress and the executive agen¬ prevent inflation would be inex¬
9
cies to take the following imme¬ cusable.
ishes
income
40%.
gains
liability from
the
on
today
to
period of 1949.
tax
war
trend
the
gain
period.
Combined
Federal
Inc.
JONES
C.
Economist, Green
VIRGIL
very
amounted
reflected
Underwriting
expenses.
$2,124,228 in the 1950 period and $2,704,377 in 1949.
1950
Co.,
Dean, School of Business Administration,
University of California.
FRANCIS
very
over
Inflation is a "grave wrong and
danger" that hits hardest at "the
most
helpless members of soci¬
$21,285,632 for the firnt six months of 1950 and $21,579,658 in 1949.
higher
Cork
Armstrong
JACOBY
H.
SIMON
high standard of living and a
large increase in military
American outlay without degradation of the
United
the
taking stock of the impact of the
from
vidual
St.
June
HOADLEY, Jr.
Economist,
grave
This economy can provide a
economists tion.
leading
thus conserve
On the basis of the
1,000,000 shares of stock outstanding
share earnings would amount to $2 for 1950 and $3.06 in 1949.
If 40%
by
five
-
thority.
June 3D this year.
per
Sixty
economy,
1949.
the
and Co.
Freres
Economic Research.
incurred
period were somewhat
higher, amounting to $12,784,456 as against $11,181,775 last year.
Expenses were also slightly higher totaling $12,847,956 in the first
half of 1950 compared with $12,418,919 in the similar period of
1950
Jr.
HETTINGER.
Lazard
Partner,
year.
IJosses
as
if adequate action is taken,
can be avoided.
say
of inflation
wrongs
Peabody & Co.
J.
ALBERT
Assoc.
June
This compared with
Uni¬
Northwestern
Economics,
versity.
HANS
A.
Urge Prompt Action for Higher Taxes & Controls
University.
Harvard
HEFLEBOWER
E.
RICHARD
Chancellor,
year
University of Chicago.
HARRIS
E.
Economics,
of
Prof,
ence
Aetna
&
Dun
Economics,
of
Prof of Economics,
SEYMOUR
in those areas.
the health
Dept.
HAMILTON
EARL J.
Kidder,
hereto¬
been produced in quantity in
has
Chloromycetin
the investment fore
of a
total
of
$735,000, a figure the United Kingdom. The project
which includes the investment of is expected to increase the present
$420,000 plus an earnings incre¬ inadequate domestic supply there
without using dollars.
ment of $315,000.
It also will
receipts
rency
GEORGE
B.
Director,
mycetin.
con¬
dollars
Co.
&
into
principally
maceuticals,
Parke,
guaranty,
Wis¬
of
Bradstreet.
new
a
land
the
Under
vert
preparing to erect and equip
plant on company-owned
for the manufacture of phar¬
now
10 by the
Cooperation Adminis¬
tration.
Davis
sale and distribution of an
line of products.
It is
ture,
Aug.
on
Economic
had
laboratory
near
London engaged in the manufac¬
was
University
Commerce,
consin.
and
branch
a
FRAINE
G.
HAROLD
dollars.
into
Davis & Co. for 60 years has
industrial
an
contract
with
Parke,
Davis & Co., Detroit, covering an
investment of $420,000 made in
announced
the
favorable
signing
guaranty
Week—Insurance Stocks
Land Use
Columbia
Uni¬
Urban
Studies,
Housing
EDWIN
The
current
and
for
Institute
Director,
versity.
Bank and Insurance Stocks
This
FISHER
M.
ERNEST
Investm't
EGA Guarantees Parke, Davis & Co.
20th
Economist,
STEPHEN
M.
Executive
Century
E.
of
Fund.
& Co.,
Charge,
Economics,
D.
President,
Vincent
Inc., 390 Main Street.
Glassman Opens
DUNKMAN
Barnett
University
of Roch¬
ester.
LIONEL
—
BRUL
Business Research
General Motors Corporation.
WILLIAM
Prof,
DU
in
Mass.
A. Botticelli is with H. L. Robbins
DEWHURST
FREDERIC
Staff,
WORCESTER.
Barron's.
a
Glassman
securities
will
business
engage
from
of¬
fices at 384 East 149th Street, New
EDIE
Lionel D.
in
Edie
&
Co.
York
City.
Volume 172
Number 4934
...
The Commercial and Financial Chronicle
(637)
17
Security Traders Association of Los Angeles Outing at Coronado Island
-t
■
'l
St
Roy Warnes, Hill, Richards & Co., Los Angeles; Jack Alexander, 'Walston, Hoffman
& Goodwin, Los Angeles, President of the Security Traders Association of Los
Angeles; Bud Tuttle, Gross, Rogers & Co., Los Angeles; Sandy Power, Wagenseller
& Durst, Los Angeles; Bud Dorroh, William R. -Staats
Co.y Los Angeles; Scott Stout,
Blair, Rollins & Co., Inc., Los Angeles; Frank White, National Quotation Bureau,
*San Francisco; Don Summerell, Wagenseller & Durst, Los Angeles
Warren
Hanson, First California Co., Los Angeles; Max Hall, Dean Witter & Co.,
Angeles; Bud Tuttle, Gross, Rogers & Co., Los Angeles; Dick O'Neil,
Edgerton, Wykoff & Co., Los Angeles
Los
t
Conrad
&
Shafft, Shafft,Snook & Cahn, San Francisco; Don Summerell, Wagenseller]
Durst,Xos Angeles; Emmet Whitaker, Davis, Skaggs & Co., San Francisco,
1
President of the San Francisco Bond Traders Association;
,
Larry Pulliam, Weedeh & Co., Los Angeles
;
William A.
Lippman, Jr., Akin-Lambert Co., Inc., Los Angeles; Thomas W. Price,
Co., Inc., San Francisco; Don O'Neil, Walston, Hoffman & Goodwin
Angeles; Walter C. Gorey, Geyer & Co., Inc., San Francisco; Bill McCready,
McAndrew
Los
&
Geyer & Co., Inc., Los Angeles
^
•
John J. Quinn, Stone & Youngberg, San
L.
Francisco; Elmer
Weir, Brush, Slocumb & Co., San Francisco
Bill
J. A. Hogle &
Francis 1.
>
^ :WarrenHanson, First California
,
du Pont & Co., Los
Co., Los Angeles; Bob Diehl, Paine, Webber, Jackson
Curtis, Los Angeles; John F. Egan, First California Co., San Francisco; H. Frank
/it Burkholder, Equitable Securities Corp., Nashville, Tenn.; Foster Paisley, First Cali'fornia Co., Los Angeles; Graham Walker, Joseph McManus & Co., New York
„
'Arr'-
Co., Los Angeles; Tim Spillane,
Co., Los Angeles; Tom Euper,
Pike, Morgan &
Bud
Dorroh, William R. Staats Co., Los Angeles;
Dean Witter & Co., San Diego
Phil Neary,
Angeles
O'Neil, Wulston, Hoffman & Goodwin, Los Angeles; John F. Egan,.^irst Califor-*
Co., San Francisco; Jerry Tegeler, Dempsey-Tegeler & Co., St. Louis; Graham
Walker, Joseph McManus & Co., New York City; Jack Hecht, Dempsey-Tegeler & Co.,
Los Angeles; Max Hall, Dean Witter & Co., Los Angeles
Don
nia
18
(638)
The Commercial and Financial Chronicle
Our
By ROGER W. BABSON
Babson
condemns
U.
on
non-partisan basis.
are
pushed around by
stupidity for bringing on
reorganization of the Government
ment
The country
must
civilian
cut
setbacks in Korea and alarmed at
pointees
possible prospect of a third
World War less than five years
the
ond.
Even
in
Korea,
War
will not
it
<
only
us
food-carrying vessels is always
to be anticipated under war con¬
ditions.
Therefore, no curtailing
of crop production need be ex¬
that
by
now
the
Rus-
pected in the next
|; sian objective
is subject i o n
of
crackdown
whole - tion
the
world.
any
"peaceful'
lution of the Korean problem
there
but
so¬
temporary. For Russia's
policy is to divert America's at¬
There
tention
on
her
to
attack
strategy,
all
everywhere from
"soft
Past
s^ots"
enemies.
We
foolish
and
have
at
Yalta
the
to
drop in late
applies
to
cutting in
earlier
among
of
tionalist
China
Kai-shek
the
U.
S.
into
to
the
against
Who
tyranny
denied
portance
only
of
in
the
the
Formosa
State
in
are
the
Who
that
so
U.N.
and
France had
city and
of the
U.
no
ago?
the
Britain
except
Russians?
Who
from
by
main
grace
withdrew
Korea
months
Who failed to deliver what
Non-Communist * government
asked
in
military
doesn't look to
has
ernment
It's
us.
supplies?
me
if
as
been
actions
our
for
a
caused
lien
on
pocketbook.
our
Present
Months
Political
Knowland
and
McCarthy,
others,
protective
action.
still
among
the
need
Today
appears
the
loath
to
reorganize the government on a
non-partisan basis. There is still
a
failure
to
appoint
the
best
brains and ability in the country
to
the
most
important admin¬
positions. Also there is
istrative
a
general feeling in Congress that
all
of
been
Russia's
cleaned
friends
of
out
have
not
government
departments.
If
the
to
a
real emergency
near
believe
material
effect
as
future,
if
that
develops in
have
we
price,
controls
immediately.
reason
and
wage
will
go
into
Yet, it looks
action 'would
be
delayed if possible until after
the
necessary
coming
Congressional
come
again,
If controls
let
our
y/e
want good
Congressmen
elections.
we
should
know
judgment and
government
spending. If not,
inflation.
We
several years, John J.
of
the
believed
will
there
ernors,
the
announced.
a
of
This
tradtional
been
issue
the
is
that
re¬
tion
held
New Treasury Financing
on
what
to
as
the Treasury
case'in the past, these are
been only partly right.
will
certificates
use
will
do, but as has been the
mainly outside guesses, which at best
have
ment
a
Golf
be placed in competi¬
name
of
by Mark J.
won
70 at Quaker
the
player
Expectations
with
1V4 %
a
of
affair
rate,
govern¬
intermediate-
and
far
as
as
quarters of the financial
many
district
are
re¬
gen-
partner.
Ladd,
c
i
t
a
e
asso-
with
d
over
Brock
firm
18 years,
for
continues
New
York
Greene
1942,
during
World
head
Yale
Force
War
But, what about the Treasury? In the past the Treasury
up with surprises in its financing. They might, however,
really surprise every one this time by doing what the experts
have been predicting.
has
come
Banks Could Use
This
will
one
be
sizable
a
Higher Coupon
operation
and
the
firm
office
firm
of
the
In
addition 'to
branches are main¬
Springfield and Middle-
York,
coupon obligations (like l3/4s) were included in the financ¬
ing, there would still be a saving in interest cost to the Treasury.
is
doubt
no
about
Mr.
cause
present handle the
140-acre
Kenrick
the
These institutions own the largest amount of the
maturing
issues, and it would not be unfavorable to the market as a whole
financing.
banks
out
used in the
were
There
impending
are
no
longer term high yielding
buy aside from the September, 1967/72s.
the
the
issues these
Loss of the
2M>s will force certain of the
can
to
obligations
coupon
banks
of
end
affairs
of his
Bellbrook,
near
commercial
to
go
the
list, and this means increased demand for
the longest taxable issue despite its fairly sizable
premium and
not too sizable yield.
Gillespie With
C. M. Loeb, Rhoades
Kenrick S. Gillespie has become
rates.
low
farm
where he is raising shorthorn cat¬
tle for breeding purposes and en¬
refunding being a success, but it
could be made more digestable if the
deposit banks were of¬
fered somewhat longer-term issues with
slightly higher coupon
if other than
Brock, who is retiring be¬
of his health, will for the
somewhat
higher
There
1956/58s and the
are
will
the
day and
by
1956/59s
obligations that
be
affected
There
associated
with
Carl
M.
Loeb,
Rhoades & Co., 61 Broadway, New
York City, members of the New
York Stock
of
their
Exchange,
investment
as
Manager
advisory
de¬
partment.
Mr.
Gillespie
formerly with
was
Barrett Associates.
one
has
many
way
been
Jenks, Kirkland & Co.
Likely Affected
in
are
the
thick of
another
considerable
it, because
market followers be¬
money
or
by
the
early
fall
in
these
two
activity
in evidence with the proceeds
going largely into the 2Vfes of September, 1967/72.
hand,
of the shrewdest followers of the
some
putting funds into the 1951/53s and the
issues
the
are
in
favorable
a
Nonethe¬
On the
have
market
1952/54s
other
been
believing these
position irrespective of what
comes
in
Jenks,
Kirkland
&
Co.,
1421
Street, members of
the
New York and
Philadelphia Stock
Exchanges. Mr. Whitman has been
active
as
an
individual
floor
broker in New York City.
On
Aug.
31
Henry
L.
Harris,
ber, will retire from the firm.'
Pension Funds Await
The
York Stock Exchange, on Septem¬
ber 1 will become a partner in
New York Stock Exchange mem¬
refunding.
new
S.
PHILADELPHIA, Pa.—Herbert
Whitman, member of the New
Chestnut
profit taking has been
some
Developments
ineligibles have been moving out of the market
in the
as
)
past, although volume has receded slightly due in
to
the
on
time
the
Vies.
of the
It
is
The
the
have
1959/62s,
been
1962/67s
1964/69s have been
investors that have been
taken
a
as
by
on
as
1963/68s
some
very
institutional
more
u. s.
bit
a
into
TREASURY
the
of the non-bank
Pension funds,
active in their acquisi¬
This is attributed mainly to the desire
what will happen in the
see
the
letting out the 1959/62s.
in the recent past.
to wait and
few
and
according to indications, have not been
tions
measure
though price changes have been
even
reported there
from
some
The early eligible taps have been
year.
unsteady side
minor.
coming financing.
★
★
★
BILLS
CERTIFICATES
NOTES
Long Tap Issue Expected
BONDS
Although considerable is heard about what will be done to
to be
no
of
Francis
new
needs of the Treasury, there
money
seems
set pattern yet, despite reports that many
plans are under
consideration.
one
these
A
long-term tap issue will
days,
with
not
too
much
doubt
no
mystery
come
about
along
it.
The
the
prin¬
maturity and whether it will be marketable
or
cipal
will
still
be
2M>%.
held by the low gross scorer. Many
other prizes have been given
by
Therefore,
vogue,
will
the
effect
Truslow, President of the
Exchange,
to
be
permanently
member firms and individuals.
of
Mr.
upon
the
Reilly's
com¬
mittee include Charles J.
Bocklet,
Greene,
Joseph J.
Harris, Harris & Co., James A.
Herman, Benjamin Samson, Mel¬
ville Scholer, Judson L. Streicher,
Leonard
is
gaging in general farming.
if
even
Adams
Members
in
Captain
and has
II,
with
Ohio.
Dayton,
New
from
Air
Mr:
1945.
The
in
an
associated
since
a s
resident partner.
graduated
was
been
con¬
cerned.
board for the low net
the
a
town, Ohio.
finance the future
addition, trophies have been
governing
that the
are
issues, most likely l%s. Some hold the view that lVfes will
used. The refunding appe&rs to be
pretty much a cut and dried
Stuart with
donated this year by the Exchange
score
as
Delano Wood
tained in
Ridge Golf Club in
September, 1937.
In
Ray
Brock
eral
:
sible position to take advantage of what may
develop in the mar¬
with the new offering.
As usual there is the same master
switches
with the day's low gross score in¬
scribed thereon.
The trophy was
last
!
no
ket
less,
Thursday^
on
Exchange
the
and
M.
activity. The
have''not had as
doubt about the government market being under
the influence of the coming financing. This is evident
by the way
investors and traders are trying to put themselves in the best
pos¬
minding
a
tired
the
of
be¬
the
Conjecture
There
refunding.
tourna¬
competed
for
in
the
tournaments of several years ago,
again
most
obligations with the ins and the outs about in balance.
Exchange
Trophy,
will
of
center
the
and
is
admitted
general
partner.
1964/69s.
lieve
Sept. 14, at the Garden CityCOunUn
try Club in Garden City,) LongIsland, with Joseph F. Rejlly as
Chairman
of
the
committee in
Curb
as
inter¬
and
As for the tap
these
Gov¬
This year's tournament and: out*
The
certificates
ing
Ray M.
before the recent war, was
formerly held twice each year,
in the Spring and Fall.
be
be
11.
Aug.
Greene
seems
the
2%% partials
volume, but, nonetheless, have not been entirely on the out¬
issues it appears as though the Vies still are
the leaders despite somewhat enlarged
activity in the 2Vis and
side.
event
will
tive
&
effec¬
Harry Talbott
refunding, the outstanding middle maturities of
taxable
The
Mann, Viee-
Board
ment,
ing
Greene
dangerous that is.
Exchange will renew their
exchange
golf
tournament
and
outing this fall after a lapse of
Chairman
It
of
Exchange
exchanges, was
changed to
much
2s and
thrown
now
Curb
Taft,
called
attention
to
danger in the Orient and the
President
are
charge of arrangements.
Trends
Senators
ago
of
The members of the New York
gov¬
encouraged
anxiety of mind and
for
It
operating
have
the spread of communism,
us
at
and
its
to
access
capital
forces
our
S.,
are
Golf Tournament
at
partitioned Germany
the
being
these
more
how
better
Current Issues Most
world-dividing conference
Yalta?
of
NY Curb to Resume
four years ago? Who put
Alger
Hiss
in
high
position
at
the
of
of
our
for
know
Department
as
the
All
defense,
we
files stripped of "derogatory" in¬
formation on employees as early
formation
expectation
men
must cut civilian
im¬
few months ago?
a
Who ordered
into
all
and
antici¬
now
an
This could curtail home
amounts
great
Orient.
military
Korea
of
subject
bulwark
a
slump than
younger
a
is
the
the
ma¬
necessity short-term price trends,
to the "risk of war."
If
Com¬
government?
China would have been
Industrial
moderately. This
metals, textiles, and
purchases.
Chiang
take
it
in
bit
a
eligibles have
rise
because
drafted,
Na¬
to
because
refused
munists
pated
country?
aid
early
building materials.
Real estate,
especially residential, could have
con¬
dustrial
part
to
The latter
summer or
interfere.
will
an
withdrew
tend
Grains will tend to drop too
weather or war develop¬
half of Korea, with Russia
given
control of the best
developed in¬
Who
will
Stock
Ladd,
term
war
terials
us
leading
be
Korean
ments
treason.
behalf of the U. S.,
on
sented
among
committed
even
Who,
blind
some
Because
unless
worst
been
have
and
shoes.
or
some
to foods and livestock.
fall.
own
be
now
prices fairly firm for the
present.
This applies especially
without and/or
our
will
The
Stupidity
be
for
reason
no
large scale.
a
may
may
is
make
within.
We
the
inventory
accumulation in business; but not
dis¬
perse and scatter U. S. troops as
thinly as possible over the globe
and
before
hoarding foods, clothing
can
Only be
from
consump¬
expected
summer
is over.
Now may be a
good time to buy an automobile;
So, of
course,
civilian
on
be
can
A sharp
year.
and
name
Brock, members of
York
as though the
bank
play, since they will be
directly affected by the early fall financing.
longest
great distances and possible losses
ing Americans
changes and switches being made.
issues have had
more
the
of
&
New
this, there is more than
passing amount of interest in the market with many portfolio
a
mediates
Houses
relief.
Greene
the
very near future. Therefore, there is a pre-new-issue attitude in
the government market, which means a certain amount of
caution
and slightly curtailed activity.
Despite
World
The transportation of foodstuffs
—
For all think¬
know
during
Outlook'for Commoditifcs and
cause
among
Roger W. Babson
loyalty
II.
t h usiasm
e n
ap¬
to
tionable
if
do succeed
we
President's
American
sec¬
DAYTON, Ohio—The firm
of the in-between times in the
money markets with
one
many operators waiting to see what is going to happen. A sizable
refunding is in the offing and the terms will be announced in the
control
jobs.
The
people know now that
they were pushed around by quite
a few political crackpots of ques¬
the
aiter
the
on
To Be Greene & Ladd
of
spending.
straint
is disappointed by
Governments
on
By JOHN T. CHIPPENDALE, JR.
This is
Says American people now know they
few political crackpots. Says govern¬
a
Reporter
S. past
Korean crisis and calls for
Thursday, August 17, 1950
Brock Retires; Firm
The Korean Crisis
Mr.
...
G.
unknowns,
the
with
because
a
V-h.%
outstanding
Treasury should
While
of the
the
coupon
still
issues
have
be
very
raise
to
intermediates and
rate
in
important,
are
particularly
large amounts of
longs
have
been
banks
certificates
have
been
the
There
Gaudino, Secretary.
Non-bank investors continue to be
also
been
some
much
long shot.
filling in here and there with the
apparently
J. Streicher & Co., and Francis X.
has
a
if
funds.
new
getting
spotlight the shorts have not been neglected by
Commercial
longer
the
coupon
not
favorites
industrial
on
for
purchases
the
of
moment.
the
C.
I.'s.
the sell side of the shorts.
Aubrey G. Lanston
8c Co.
INCORPORATED
15 Broad Street
NEW YORK 5
WHitehall 3-1200
45
Milk
Street
BOSTON
9
HAncock 6-6463
Number 4934
Volume 172
The Commercial and Financial Chronicle
...
uu
Britain and Rearmament
Canadian Securities
tion,
absence
Economy: Will History Repeat?
of
for.
This
ago
although at present
currency
on
moderate
a
scale, is likely to assume more
important proportions in the not
future.
distant
too
mentioned the
ation
case
the
of
As
previously
for the revalu¬
Canadian
much stronger
dollar
is
than that in favor
other
favorable
exert
their
tion
ulative
her
investment
dimensions.
is
ia
Com¬
the
reached
imposing
Furthermore Canada
receiving
increasing
tional attention
as
a(
interna¬
possible safe-
haven for volatile foreign capital.
In addition the potentialities for
profitable investment in the Do¬
would
minion
be
to
appear
un¬
rivalled elsewhere.
that
also
factors
beneficial
Canada
is
are
ex¬
natural:
obvious indications
now
the
that
abundance of
can
no
longer
previous
resources
it
•
be
depended upon to satisfy the
mounting domestic demand.
In
addition the growing pressure of
inflationary forces in this coun¬
influx of
try is becoming
increasingly dif¬
Canada will
probably eventually confront the
ficult to control.
;
Canadian authorities with
flow of funds north of the border
-
the
For these reasons
capital
foreign
into
great¬
a
than that which re¬
cently caused considerable em¬
barrassment to Australia.
Up to
problem
er
a
certain
point Canada will
absorb
to
funds which
looked upon in the past
investment
foreign
have been
as
willing
be
doubtedly
un¬
indispensable to the full devel¬
the
of
opment
natural
of
wealth
times
certain
Dominion's
vated
S.
U.
dollars
and
comfortable
and
Canadian dollar. However, as such
ward
have
recent new
ate
to
the
ation has undergone a
have
constitute
to
the
a
from the
now oper¬
probability of
large degree the undesirable hotthat might have
peal
to
tionary
the
of
is
counter-infla¬
the
effect of the revaluation
Under present
currency.
is
it
also
circumstances
now
no
longer necessary to have the Ca¬
nadian dollar at a discount in
order to maintain the volume of
exports
other hand the persistent embar¬
the border.
south of
therefore
unwise
be
would
rassing surpluses of inconvertible
It
to
much credence in the
apparent official scepticism con¬
cerning the possibility of an im¬
too
place
sterling have been drastically re¬
duced.
that on
minent
section
tained
but
CANADIAN BONDS
change.
currency
week
During the
improvement
recent
its
was
restricted
a
on
The internals on the other
hand were in steady
demand on a
Free funds
were
also strong and dollars for
future delivery were quoted at a
wider
premium. The corporatearbitrage rate was unchanged at
10y2%-9:5/4%; the decreased ac¬
tivity in this section in
recent
weeks suggests that U. S. investor
mounting
Provincial
Municipal
Corporation
interest is
turnover.
now
the
centered to an in¬
creasing degree on the attractive
Dominion internal bonds.
Stocks
following earlier dullness finally
Government
Although it is
economy.
has
not
bene¬
be
must
heartbreaking for Ministers
and their expert advisors to undo a large
part
of the work done in the interest of a
higher
that by
delaying the decision they
In
with
Paul
Einzig
rearmament, the reply
was
that if
was
no war, the efforts and sacrifices made in
reinforcing national defense would be wasted. So
the adoption of a planned rearmament economy, and
subsequently
interest of
of
a war
economy, was deferred as long as possible, even after the
outbreak of the war, in the hope of a peaceful settlement. Those
responsible for this policy did not realize that the unpreparedness
of their country encouraged the aggressor and was one of the main
of the
causes
In
people who believe that it would
be sheer waste to spend millions on rearmament and to sacrifice a
are many
corresponding amount of capital goods and consumers' goods which
would otherwise be available for the civilian population.
Their
arguments appear to be
convincing to wishful thinkers than
they were 12 years ago. For in the late 'thirties it was possible to
rearm on a fairly
large scale without having to curtail civilian con¬
sumption. There was then extensive unemployment, and many
factories would have been in a position to expand their output. At
present Britain is producing to capacity, and, unless workers
should agree to work harder, any increase of arms production
must mean a corresponding decline of civilian production.
Moreover,
new
16-year high. On anticipation
of increased demand following
A. E. Ames & Co.
INCORPORATED
Two Wall
announcement
lion
WORTH 4-2400
N. Y.
NY 1-1045
a
gains.
after
oils
lower
issues
also moved ahead but the Western
a
in
Street
Boston O. Mass.
mobilization
base-metals
The
firm
clined to sag.
Fifty Congress
year
the
5-year bil¬
the
steel, chemical, lumber,
utility shares recorded wide
Street
New York
dollar
of
a
in¬
with
the
naturally developed
consequence
emergency.
were
The golds also were
conformity
trend that has
as
start
of the
present
World
those of
War
have
en¬
the interthe second
recorded.
been
Once the government has decided
full-scale rearmament it will
upon
position to avoid
a
World
War
many
of
sec^;
and
its
will
be
than that
easier
predecessor
12
was
years
For in the meantime a high
of
peace.
The organization of resri
economy
would
not
begin from the very be-;
have
to
ginning.
controls
Many
are
still
in
force, and it will be possible to
restore many others with a stroke
the
of
for
pen,
man
whether
Even
y
to
there
so,
without
are
should
which
lems
instead of hesitating
precious
months
adopt them or not.
many prob¬
be discussed
is
What
delay.
of
true
Britain is true of the other demo¬
countries.
cratic
Dardi and Young
Head
Western Industries
afraid of the social and politi¬
living. They
argue that it is quite conceivable that the Soviet Government has
no intention to embark on a major
war, but wants to force Britain
and the democratic countries into a rearmament race, in order to
bring about a deterioration of their economies and thereby to
cause widespread discontent.
Until quite recently it was hoped in
Moscow that there would be a slump in the democratic countries,
many
people
are now
as
result of which Communism would have
a
a
chance to conquer
by exploiting the misery caused by the economic chaos. A little
more
than 12 months ago Professor Varga, who had refused to
believe in the
his
own
inevitability of such
a
slump,
Now that he has proved
views.
was
forced to repudiate
to have been right, after
V.
all, it is conceivable that the Soviet Government may have come
to the conclusion that more is needed than merely waiting for the
slump, and that the prosperity of the democratic countries should
be
destroyed by forcing them into a rearmament drive.
is not realized
What
in Berlin
12 years ago,
of
the
called
for
by
be prepared to make the sacrifices
requirements of national defense. Output per
increase and workers will be willing to work
danger it will
the
then
man-hour will
longer hours,
in Moscow, any more than was realized
is that once the British public realizes the
so
that the standard of living will not be affected to
requirements. At the
the full extent of the increase of rearmament
same
put up with a
war
for
public to
lowering of the standarxrFOfdiving. In itself the cold
time, the realization of the danger; .will induce the
It might have continued
would not have achieved that result.
without impressing British workers with the
years
need for
and consuming less. Even the conflict in Korea
has not been sufficient to create a "Dunkirk atmosphere." But any
war or war scare
nearer home would enable the government to
producing
more
proceed with large-scale rearmament without running the risk of
endangering internal stability through a deterioration of the stand¬
ard
of
living.
does not consider it necessary to
impose on the public such a lim¬
degree of sacrifices conveys a
removed
or
relaxed in recent years.
all,
from
of
the
election
and
of V.
of
Young
been
made
Paul
Dardi
as
Young
D.
as
Chairman of the Board of Western
newly formed
subsidiary of Blair Holdings Corp.
and
the Golden State Co., Ltd.,
Inc.,
Industries,
the latter
a
leading Western mar¬
a
keter and processor of
milk prod¬
ucts. Messrs. Dardi and Young are
respective
Blair
of
Presidents
Holdings Corp., and Golden State
Corn., and Golden State Co., Ltd.
Mr. Dardi is also Chairman of
of Blair, Rollins & Co.,
nationwide
investment
banking
firm
owned
by Blair
Holdings Corp.
Mr. Young is a
director
and
Vice-Chairman
Of
the Board
Inc.,
it
would
be
essential
and
a
a
director at large of the
Association
ternational
of
In¬
Icev
Cream Manufacturers and a mem*1
ber of the California
Dairy Indus-'
try Advisory Board.
•"
Thomas Kenney Joins
:
Garvin, Bantel & Go.
controls which have been
&
Bantel
Garvin,
120
Co.,
Broadway, New York City, mem¬
benefit by the lessons
advance a detailed
plan for a conversion of peace economy into rearmament economy.
There are no indications that any such plan is being elaborated,
beyond the consideration of such measures as are intended to be
taken in the near future. The Government is not alone to blame.
The press does not seem to be interested in rearmament economy.
The columns of newspapers are full of alarming reports and comAbove
learned
has
the American Dried Milk Institute
present the public would be prepared to put up with a
certain amount of sacrifices.
And the fact that the Government
Even at
ited
Paul
Dardi
D.
Announcement
President
through the restoration of many wartime
industrials
the
upside led by
which reached a
the
on
period,
war
almost
were
during
cal consequences of a deterioration of the standard of
program,
out
War
wasted
.
false feeling of security. It is
true, the present degree of rearmament does not call for any ex¬
ceptional economic measures, and it may take many months before
rearmament could get into its stride. Nevertheless, the absence of
any emergency measures for the curtailment of consumption by
the civilian public is a mistake. It would be wise to anticipate the
increase of arms production by a timely curtailment of civilian
consumption, through additional disinflationary measures and
broke
for
economy..
more
and
j
tirely
war.
1950, too, there
has
armament
there should be. after all
the
time
need
the
degree of economic discipline has
been adopted and retained in time
Dr.
taster
first World
ago.
aggra¬
1938-40, when the then Government
the
facing
experts
While the economic lessons of the
of
vate the risk involved.
urged to proceed
when
the
and
that
ample
and
rearmament
ernment
standard of living. However, they must know
that this will have to be done sooner or later,
and
now
if
during its
opening phases. However, just as
the requirements in 1939 differed
from those prevailing in 1914, the;
requirements in 1950 differ from
those prevailing in 1939. In many
ways, the task of the present gov¬
it is aware of the need for largerearmament, it is most reluctant to ad¬
just its plans to this need. This is understand¬
It
decide
studying
de¬
was
warmonger.
available
for
ond
and
ners,
economic
the mistakes made before the
Government of plan¬
a
a
government
should
12
the
to
Fortunately there is
come
called
are
rearmament
as
material
be in
scale
extent
the external
of the bond market main¬
activity
scale.
Government
CANADIAN STOCKS
monetary
Canadian
the
authorities
Now,
appear
An
inducement
still greater ap¬
influx.
money
triangle appeared
serious threat to
would
increasing
of
speculative interest, earlier rather
than later action would check to
ion's foreign
it
eventual upward
in view
an
likelihood
the
of
trade situ¬
revolution¬
standing of the Canadian dol¬
Thus
to
quarters
revaluation. Consequently
however, the Domin¬
trade situation is on
a naturally healthy basis—on the
one
hand the chronic deficit in
trade with this country has been
almost
eliminated,
and on
the
lar.
is
at
usually well-in¬
in Ottawa there
is little reason to expect any early
development as far as a change of
parity is concerned.
It is admit¬
ted, however, that a long-range
view must take cognizance of the
change for the better.
Only
breakdown of
the traditional U. S./U. K./Cana¬
exchange
parity
meeting
According
formed
short time ago the
dian
In
tary Fund.
ary
a
bear
review
under
come
is
early
next
month of the International Mone¬
favorably the
Canadian dollar,
Canada's basic foreign
to
to
direction.
present
the
event
funds
pressure
this
in
annual
the
influence
of
course
apart
factors that
bring
to
bound
Canadian
for
action
any
dimensions,
Indeed,
up¬
an
adjustment, the speculative
likely
for
for
exists
case
demand
steadily improving trade position
vis-a-vis this country they should
continue to mount in satisfactory
fashion.
logical
a
alone of Canada's
by virtue
a pure¬
that
seems
fited by the costly lessons of the recent past.
There are no indications that the Government
has realized the need for planning rearmament
imminent rise in the value of the
an invaluable part in bol¬
stering Canada's foreign exchange
reserves.
At
the
present
time,
however the Dominion's holdings
attained
play of natural
movement moti¬
by .hopes of an
speculative
mereby
ly
played
of'gold
the
economic forces and is not
capital
kind
this
from
as
able.
>
evident, therefore, that the
results
At
resources.
moreover
of
movements
vast
It -is'
she did 12 years ago?
She entered the second World War
fully unprepared in the economic sphere. This is frankly admitted
in
the recently
published official economic
history of the war. Yet by the look of things
omy
pansion.
This coincides with the
period, when south of the border,
there
as
LONDON, England. — Is history repeating itself? Is Britain
going to make the same mistakes in the matter of armament econ¬
the
on
of dynamic
era
and longer work¬
operating against substantial lowering of British
living standards.
In
threshold of another and possibly
greatest
Foresees increased output per man-hour
ing periods
little ques¬
now
the
now
effect.
the first place there is
of the Australian pound, although
in spite of this fact foreign spec¬
monwealth
no
nounced
for.
longer at the
mercy of external events.
From
this point of healthy stabilization
trenched, and is
discussing the
same
yealrs
anybody who tried to
of
Though pointing out difficulties now faced by Britain in rearma¬
ment, Dr. Einzig holds, once British public realizes extent of
danger, it will be prepared to make sacrifices that are called
alone, the Dominion's
is
now
firmly
en¬
situa¬
noteworthy
a
the
was
attention
aspects
commerce
is
articles
when
arouse
By PAUL EINZIG
normal international
basis of
the
imernauonai
there
economic measures that
By WILLIAM J. McKAY
The anticipated flight of foreign
funds into the Canadian dollar,
uie
but
to
the last war and to elaborate in
bers of New York Stock and
Curb
Exchanges, announce that Thomas
E.
Kenney
firm's
Mr.
.
is associated with th£,.
collat^aljioan department.
Kenney sWas
partner in
./
•
formerly
a
Gk'F.'Hulsebosch & Co.;
i'A
/linvs.
•
::
v
•
20
The Commercial and Financial Chronicle
(640)
Thursday, August 17, 1950
...
duction schedules.
Public
More Truth Than Poetry!
Utility Securities
(the
Payout
The
accompanying table shows some of the principal items
of interest in the composite income account for all class A and B
electric
the
utilities in
private
Utilities"
the
of
The
"Their
(comprising about 95% of
figures were obtained from
edition
1949
"Statistics
of
of
by the Federal Power Commission.
nearly $20 billion,
well-rounded
The
or
basis
interest
in
connection
full annual basis.
on a
If the tax rate
Joe R.
■
"
stepped
reduction in
Balance Earned for
!
Revenues
$2,271
$343
1940
1939_
2,404
397
1941
2,621
Common Stock
"
425
512
400
310
362
279
378
286
2,971
667
1944
3,108
653
390
1945
3,171
639
422
may
people
to
ask the Amer-;
in the face
danger confronting
believe
that
the
of
us.
I
great,
the
do not
the
glaring excep¬
the general rule"
disprove
that
volun¬
cooperate
tarily,
tions
which the
measures
undertake.
I
completely with those
that it is futile and a
say
ican
American
people
want
to be taken into the confidence of
their government,
no
to
know
they
that they want
going on, that
feel they have a
make, and that the
majority of them
what
is
to
want
contribution to
overwhelming
of attack which the Administra¬
they know what is at stake.
tion doubtless most fears.
And who
can
In
295
both
the
attack and
the final
longer
that it is not fully warranted—
say
281
1943
.
This is the type
324
617
any
disagree
match the
Joe R.
of
government
will make that contribution when
$320
2,769
1942
and
or
policies
to
partially defeat the effective¬
ness
nomination for Governor of New York.
Dividends
$411
resort
or
or
arising from a scare psychology
when supplies are abundant, they
can
enemy's."—Lieutenant Gover¬
Hanley, candidate for the Republican
nor
Common
•
Total Taxes
effective bazooka in Korea
workers
avaricious
waste of breath to
an
to
Cooperation
or
are
grasping,
'
(Millions of Dollars)
Years
consumers
who made the
men
didn't have
'
Voluntary
businessmen
If
.
matter how
tanks
Utility Companies
Wants
Ko¬
intelligence, if
I
had
to
fire
the
whole
Central
Intelligence
Agency." * * * "These people down in Washington
have been sloshing our money all over the world
like Champagne Charlies. They have been talking
big and loud, but when the fighting began, we
to 50% in lieu of a new excess profits tax, the
earnings for common stock might work out around 21% on an
average basis.
For individual companies, however, the percentage
loss might range from 15 to 30%, it is estimated.
Electric
troops
who
Hanley
never
can
the
necessity for the exer¬
cise of that individual responsi¬
bility which is the obligation of
every citizens in these times.
bum decisions in
were
up
utilization
their
bounce the
with
tax rate (which may become effective in the last quarter of 1950)
applied
able,
ing.
proposed higher
taxes. It is estimated that current earnings available for common
stock might be reduced by some 10-12% if the 45% Federal income
were
use
matter how many of these ad¬
ditional powers are made avail¬
avoid
North
to
no
high their stand¬
I'd get rid of Defense Sec¬
retary Johnson and his bad ad¬
visers. I'd have a shake-up on
the
General
Staff, and
I'd
no
during 1949.
is of
table
of
willingness
his
additional
powers
on
a
standby
when needed.
But
(
available
basis, for
Amer¬
sent
American
hordes
these
made
reans." * * * "I would get rid of
the bad advisers in Washington,
$8.6
to
of
against
$15.6 billion after depreciation. Long-term
billion, an increase of nearly $0.9 billion
or
11%.
Preferred stock was $2.4 billion, an increase of about
10%, and common stock equity (including surplus) gained about
$0.6 billion or 10%. New money financing was, therefore, on a
amounted
decisions
handful
electric industry added nearly $2 billion to
plant account, after allowing for retired property; in the previous
three years it had added about $3 billion. Net plant account (in¬
cluding gas and miscellaneous plant) at the end of 1949 totaled
debt
have
ican
boys with pop-guns up
against 40-ton Red tanks and a
Electric
the
year
leaders)
However, the
already indicated to
Congress
have-
Democratic
in the last five years.
States
industry).
release
issued
Last
United
the
power
the advance
the
proved to be incompetent either to maintain the
peace or to provide an adequate national defense
after having been given fifty billion defense dollars
By OWEN ELY
Taxes and Dividend
officials
"These
President has
usual,
the fears.
and
follow
time
3,293
626
533
353
3,698
651
547
398
4,167
1949
4,382
no
as
afford
to
we
cannot
we
peril.
in
this
can
and
ways
But
we
ways.
1948
can
business
do
to
peacetime
of
1946
1947
anaysis,
afford
'•
Continued
jrom
must continue to follow American
9
page
559
395
to
786
654
449
in
the
in
war
Economic Policies for
How much damage to dividends would a new EPT (excess
profits tax) do? In 1942 the electric utilities paid total taxes of
$617 million compared with $343 million in 1939.
Fortunately
the
companies obtained larger
and
revenues
able
were
to
expenditures and make other economies suf¬
ficient to offset some part of the increased tax burden. However,
of
and
certain
types
consideration—should be
tax
the balance available for
adjusted and adapted to the
to $362
rent
ments
million,
common
on
million
common stock
dropped fiom $411 million
decline of nearly $50 million, and dividend pay¬
a
stock
about $41
or
As noted
committee
cut back
in this department
of
Gas Association
the
are
from $220 million to $279
was
a
Edison
last week, the
old EPT worked
inefficient method
very
Electric
Institute
currently preparing
Congressional tax committees in the
a
near
of taxation.
the
and
American
brochure to submit to
future.
ment)
are
a
regulated
many observers feel that "excess profits" are a misnomer
applied to 90% of tlie electric companies. (Electric utilities
free of state regulation in only four states and in those states
the municipalities retain
jourisdiction.)
However, if the industry
again become subject to EPT as a patriotic wartime duty,
in order to maintain the good public relations
laboriously built
up in recent years despite Federal disparagement, executives in
the industry feel that at least the "loose ends"
and
injustices of
the
The
brochure
law should
eliminated
be
in
the
new.
or
exhibit referred to above, now in
preparation, will suggest certain
changes which shouid accomplish this.
What will
happen to dividend policy if an EPT is applied oh
45% rate? Fortunately dividend payout is'iifrw
only about 69% or 70% of available earnings compared with,78%
top of the
new
in 1939.
It appears likely that the higher income tax can
absorbed if the average dividend payout is increased to
80%. This
would offset about $65 million of the new tax burden.
Last year
Federal taxes on income amounted to
$348
be'Mfy
million, and the in¬
in
crease
increase
the
of
from
rate
18.4%
38%
to
about $64
or
45%
would
mean
a
the
farm
be
the
added
unavoidable.
to
EPT
burden
if
it
exceed
On
the
an
13%
overall
cut
basis
this
experienced
would
perhaps not
during World War II,
with a full-fledged defense program. The recent
decline in
the utility stocks would therefore appear
ample to discount sucli
outcome.
The
Some
decline
in
the
market
has
been
rather
indiscriminate.
companies
prospective
have sufficiently low dividend payouts, and
income gains, to absorb both the 45% tax and an
EPT without
disturbing their dividends. Others, which have been
over-generous, may have to cut dividends more than 13%. There
will probably be a number of readjustments in market
price as
these differing prospects for dividends are realized
by holders of
overall
up
in
cutbacks
production
It is
vast
a
new
to maintain
time for utilizing
agricultural tech¬
nology, to provide
huge supply
a
duction.
A
increase
military purposes cannot
immediately be counteracted by
equivalent
and
of
Labor
coordinated
drive
room
for
or
pages.
total
for unnecessary work stop¬
Labor
showed,
during
the
of
excess
civilian
The first and fore¬
remedy for this situation, is
most
drain
off
excessive
the
lation
pending, and additional proposals
the
supply of man¬
in the customary sense.
It
toward
as
power
should
that
have
opportunity
again, and be ready to utilize it.
If
upon
can
all keep our
this central problem of
we
able
production,
to
we
understand
eyes
more
will then
the
better
significance of the various control
measures
now
under
discussion.
The main purpose of these control
when
for
this
toward
end
is
The
more.
the
public should realize
cost
of
defense
be
must
borne by
the people.
Any at¬
tempts to avoid this cost, by taxes
which
are
not
high enough to
meet the cost
on
basis, would be
a
pay-as-you-go
illusion and
an
a
York,
and se¬
peace
has
that
this
approach to tax and credit
of almost uni¬
properly anal¬
production, to
get the right kind of production,
and to get it for the right pur¬
poses.
When this is fully appre¬
ciated, controls can be properly
were
used.
Trust
Co.
of
that
announced
New
Frank
P.
Ohlmuller, who is in charge of
bank's Security Analysis De¬
partment, has been advanced to
the
Vice-President.
Mr.
as
Ohlmuller joined
1934, hav¬
previously
ing
of
the bank
Senior Analyst in
a
associated
the
an area
may
Gib^bn, President of
Harvey D.
He
policy is in
can
mounting
confront us,
any
win
Manufacturers
the
sound
to
If
and
Promotes Ohlmuller
of
is
production.
Manufacturers Trust
house
situation
civilian
substitute
curity in the end.
with
the
current
no
things
practice, we
into
shall
produce
can
these
rise
long run.
One of
the most encouraging things about
danger in
more
challenge which
we
necessary
and
is
remember
and
now
will be needed to raise taxes still
that
we
this
but
free eco¬
and
military
more and
we
power
by higher taxes
by credit restrictions. Legis¬
contribution toward the
organization of production as well
great
needs;
chasing
and
prompt
a
between
pur¬
World War II, that it could make
a
get
our
We need programs
sup¬
ply of goods.
to
to
substitute
no
workings of
nomic system.
will
far
restriction-
leadership; but it is
for the
them
and
current situ¬
protective
are
control.
and
the wages
in
public
controls; but
no
substitute for selfWe
need
government
put
more
no
they
need
military products,
earned in produc¬
this
is
We
Therefore, the prices
for these
in
There
need in the
or
ation
in
increase
ing them, tend to cause the pur¬
chasing power of civilians to rise
join
for
production.
more
ism,
also
should
expendi¬
in
tures for
this
potential abundance, instead
letting it go to waste.
proved
muster.
can
division of what
sharp
paid
been
investment
George
H.
Manufacturers
1942,
banking
Assistant
&
Burr
made Assistant
was
Trust
Co.
Secretary
Trust
in
Co.
Officer
iu
have the power to allocate scarce
measures,
yzed, is to get
more
But when
appreciated,
with
this is not fully
when
preoccupation
controls tempts
about
us
production, then
to forget
we
are
in
danger of doing the wrong thing.
versal agreement.
we
are
In
Menace of Inflation
The
chief
menace
of
inflation,
in fact, is that it disrupts produc¬
It makes it harder to
get
the right goods to the right place
at the right time.
Rising prices
make every dollar voted for na¬
tional defense worth less in terms
of
the
defense
goods
which
can
of
where
we
the government should
materials,
where
the
for
need
military
greater in the short
possibility
of
increasing
is
than the
purposes
run
increasing
produc¬
This is necessary to protect
military
to safeguard
essential civilian use, and to pre¬
vent
inequities and price in¬
effort,
creases.
The
with
less
sort
more
these
successful
general
we
measures,
are
the
it should be to re¬
widespread
control
of
necessary
to
1944 and
ant
individual prices, wages and pro¬
appointed
was
Vice-President
Ohlmuller
during World War II.
measures,
the
tion.
In this respect,
ahead
far
addition to these restraining
tion.
Some
out, would help to restore "morale" among utility investors—a
necessary step if the industry is to continue to do
equity financing
for its big construction program.
inflation, therefore, is an
essential part of the battle of pro¬
Ways must also be found to utilize
these securities.
utility ^cpippanies have already taken steps to reassure
utility analysts by'expressing hopes of maintaining the status
quo
in dividend paynjepts, Others also may feel able to do this.
Such
an educational campaign, so far as it can be
reasonably carried
of
trol
production.
needs.
which
people
methods which
any
the totalitarians
ship, disrupt civilian morale, lead
to
industrial disputes, and thus
interfere with production.
Con¬
industrial
consumer
stronger than
bought.
Rising prices and a
rising cost of living inflict hard¬
an
and
free
a
be
of foods and fibres to service both
be
is
even
an
for
and more
to
enacted, some of this
might be met through deferred maintenance, fuel economies real¬
ized from new generating equipment now
"going on the line," and
by other methods. However, some reduction in dividends would
have
time
prices.
theoretical
million—balanced by the higher
payout.
As
cur¬
tool
Generally speaking, this is not
must
old
must
for the job ahead.
our
As
industry, limited in general to earnings of 6% on the investment
(and with all the "water" thoroughly squeezed out of that invest¬
when
We
million (about 13%).
quite irregularly and
A
were
situation.
of
time and again have been
Today's Problems
incentives
and
less than in peace—the
no
methods
defer
maintenance
some
We can and must continue
cling to those methods which
past have made us strong
702
is
an
in
an
Assist¬
1948.
alumnus
Mr.
the
of
Graduate School of Banking, Rut¬
gers
University, class of 1948.
Irving Rice Adds Two
ST. PAUL, Minn.—Robert Dean
Field
and
Spencer C. Nagel have
become
associated
with
Rice
Co.,
National
&
First
Irving J.
Bank
Building.
Dick & Merle-Smith Admit
Dick
&
Merle-Smith,
30
Pine
Street, New York City, members
of the New York Stock Exchange,
will admit Julian K.
partnership
Sept.
1.
Roosevelt to
Number 4934
Volume 172
Commercial and Financial The
Chronicle
...
(641)
The Manchester National Bank,
News About Banks
NEW BRANCHES
NEW
Bankers
and
OFFICERS, ETC.
REVISED
CAPITALIZATIONS
to
depositors whose ac¬
Wachevia Bank and Trust Com¬
taking over and it pany,
Winston-Salem, N. C., a
increased its common capital stock will continue to provide the bene¬
State member, has established a
from $150,000
to $300,000 by a fits of Federal deposit insurance branch at
Charlotte, N. C., to be
stock dividend effective July 31, to
those
depositors," Mr. Harl known as Time Payment
Depart¬
according to the office of the concluded.
ment Branch, it was announced
♦
*
*
Comptroller of the Currency.
by its Board of Governors of the
♦
*
*
Ben Mills, banker, died on Aug.
Federal Reserve System, effective
10 in Billings Memorial Hospital
The
sale of $100,000
of new
July 18.
*
*
*
stock by The Farmers and Mer¬ after a brief illness, at the age of
chants
National
Bank
of Win¬ 73, according to Associated Press
Philip S. Breck, Jr., has been
chester, Virginia, has served to dispatches from Chicago on Aug. appointed an Assistant Cashier of
Manchester, New Hampshire, has
CONSOLIDATIONS
service
21
counts
it
is
1
.
At
the
regular
Board
of
tional
City
held
on
man
and
meeting of the
Directors
of
of
Bank
Na¬
The
York,
New
Aug. 15, Arthur F. SpellAndrew
J.
Painter, As-
banking division and concentrate
increase the common capital stock 10 which added: Mr. Mills was the
Anglo
California
National
insurance in
of
the
bank
from
$200,000 to President of the Michigan Avenue Bank of San Francisco, it was an¬
has been a
National Bank, Chicago, which he
$300,000.
The enlarged capital
nounced on Aug. 9 by Allard A.
leader for many years.
With the
became effective July 31, accord¬ helped to organize in 1946.
consummation of the sale of our
Calkins, President.
Born in Pierce City, Mo., he
A
native
of
banking division to Bankers Trust ing to the Office of the Comp¬
Berkeley and a
troller of the Currency.
started his banking career there
graduate
of
the
University of
Company—an action which I in¬
*
#
sis
at an early age. He moved to In¬
itiated earlier this year—this solu¬
California, Breck has served the
exclusively
which
title
on
the
company
tion has been accomplished.
An
The
increase
of>
$50,000
the
in
dian Territory at the
operating profit¬
ably and economies deriving from
common
capital
stock
of
The
Tipp-Citizens National Bank of
century
the sale will be of further benefit
Tipp
now
title
the
to
business.
recommended
Mr.
Ira
pointed
have
were
Vice-Presidents.
been
associated
Both
with
Roger
of the
The
the bank's personal credit ac¬
tivities since that department was
organized 22 years ago, and will
continue in
the
same
capacity.
They
authorities
are
on
consumer
credit.
At
same
dents: Thomas F.
Creamer, James
Jaffray, Edward A. Jesser, Jr.,
Trustees
of
*
■f
Herman
Berniker, for¬
Vice-President in charge
of the title division, to the newly-
merly
of Executive
President
the
of
Vice-
J.
company.
Goodhue, formerly Assis¬
Vice-President,
has
been
tant
elected
Vice-President,
respon¬
sible for personnel activities, em¬
welfare
ployee
and
production
activities.
the
Manufacturers
New
York,
Trust
Company,
announced
that
Mr.
Edgar P. Houpt, of the bank's Se¬
curity Analysis Department, has
been
promoted
from
Assistant
Secretary to Assistant Vice-Presi¬
Trust
Bankers
of
Co.
New
"Chronicle," page 448.
*
*
*
National Bank
Franklin
The
Square,
New
of
York,
by
stock dividend effective Aug.
increased its
1,
capital stock
common
Mr.
Houpt joined Manufacturers
Trust Company in 1935.
Prior to
from $860,000 to $890,000, accord¬
ing to the Office of the Comp¬
associated with troller of the
Currency.
Harris Forbes and Company and
*
*
*
later with Moody's Investors Serv¬
Willard G. Hampton, Viceice.
He was made an Assistant
that
time, he
was
Secretary of Manufacturers Trust
Company in 1946.
President
of
the
Manufacturers
Trust
Company,
also announced that Mr. Frank P.
Ohlmuller, who is in charge of the
bank's Security Analysis Depart¬
ment, has been advanced to VicePresident.
Mr.
as
Ohlmuller
ing
previously
with
the
house
of
He
of
joined the bank
Senior Analyst in 1934, hav¬
a
been
investment
banking
George H.
Burr & Co.
made Assistant Secretary
was
Trust Company
Manufacturers
in
1942,
Assistant
in
1944
and
Assistant
Mr.
associated
Trust Officer
appointed an
was
Vice-President
Ohlmulled
is
an
in
of
Island area of the
Telephone Company,
has been elected
Trustee of the
a
Bank,
Savings
Brooklyn
announced
yesterday.
elected
A.
has
Vice-President
a
been
of
the
President
Trust
of
trustees
Barnard
elected
Title Guarantee
Company,
special
was
New York,
and
at
a
meeting of the board of
on Aug. 8.
He succeeds
Townsend
who
has
re¬
signed.
Mr.
Townsend,
who
became
President of the company in June,
issued the following state¬
ment: "Two years ago the board
of trustees asked me to help them
1948,
find
a
satisfactory answer to the
problems confronting Title Guar¬
antee and Trust Company.
After
long and careful consideration, we
have concluded that the solution
was
to
dispose of the company's
with
drive-in
facilities
at
Park-
merced, the Metropolitan Life In¬
surance Company's housing devel¬
In 1928, Mr. Mills was named
Vice-President of the Oklahoma opment (in San Francisco), Allard
A. Calkins, President of the bank,
Stockyards National Bank at
Company.
Oklahoma City.
He left that po¬
sition to fill a similar post with
the
National
Tradesmen's
Bank
Harl, Chairman of
Federal
Deposit Insurance Cor¬
poration, on Aug. 10 announced
that all deposits of the Farmers
Mnple
T.
Bank
National
First
being taken
are
by The First Na¬
as of
over
tional Bank, Joliet, Illinois,
close
the
business
of
Saturday,
will
about $250,000 in
cash
the transfer possible.
Until
the
Lib¬
formed
is
com¬
pleted, depositors of the Farmers
First National Bank may continue
in
of the Oklahoma
National Bank and
Liberty National Bank of
*
Oklahoma.
Mr. Mills
President
came
the
of
tional Bank in
14
years
from
to
announced
The
floor
on
Aug. 8.
has
bank
leased
basement
and
ground
in
quarters
Chicago to be
Mid-City Na¬
1932.
In the next
bank's
the
assets
grew
$3,000,000 to $49,000,000.
*
*
Drive.
The
in
San
Francisco
*
At
a
its
30th
Chairman
of
fornia,
was
City, Mo., have voted to trans¬
dollars
from
of the Board
Crocker
Ralph
National Bank & Trust Co., Kan¬
million
a
in
*
tional Bank of San
recently,
*
of
of
a
to render
and
*
meeting
Directors
rectors
fer
Parkmerced of¬
complete banking service and will
include a safe deposit vault.
It
will be Anglo Bank's 12th office
of City
sas
new.
fice will be equipped
northern and central California.
The Board of Directors
transaction
the
of
Bank,
Stockyards
the
advance
to make
FDIC
12.
National
1925 by a merger
Trust
and
Illinois,
Minooka,
Company,
President
as
*
*
erty
First
of
Na¬
Francisco, held
Gwin
Follis,
the
Board
Standard
of
Oil
elected
a
*
of
Di¬
Cali¬
*
director of
the bank.
the
*
Ben R. Meyer, Chairman of the
profits account to the
After this Board of Union Bank & Trust Co.
bank's Minooka office.
Chairman bank's surplus fund.
of Los Angeles
transaction
the
bank's
reports election
capital
Harl
assured
depositors of the
outstanding is
$2,000,000; of F. M. Banks, President, South¬
bank that none of them will suf¬ stock
ern California
Gas Company, Los
fer a penny's loss and that there surplus, $5,000,000; and undivided
Angeles, as a director of the bank.
will be no interruption to their profits, $1,980,000.
business
do
usual
as
the
at
banking services.
eashier led to discovery of
larities which
i
<►
irregu¬
impaired the bank's
As it has done in many
solvency.
comparable
cases,
the Federal De¬
posit Insurance Corporation step¬
ped in immediately to protect de¬
positors' interests.
In
undivided
HiHUHHUUUHVUmUHUHVUHHHHHHUHHmHmk
The recent suicide of the bank's
with
cooperation
national
Virginia
Preston
is
after
and
banks
waiting for you!
home
New
in
the
mem¬
a
following
bilities
tional
Charles
W.
Gleason,
Trustee
a
of The Green Point Savings Bank,
He
was
elected Pres¬
Aug.
W. Fel-
announced
on
succeeds George
Edward
elected
a
*
MacDougall
Trustee
of
of the Minooka institution and ac¬
by
has
The
Joseph
In
of
the
connection
branch
was
latter
with
an¬
Upton,
institution.
the
merger
established
in
a
the
former location of the State Bank
of
Churchville.
The
was
merger,
announced
the
is
which
sixteenth instance
Federal
Deposit Insur¬
Corporation has been called
upon
in Illinois to aid an
bank
that
ties.
In
encountered
insured
difficul¬
the
contribute
effective
the
Aug.
1,
Board
of
to
stability
of
Virginia Beach that is?
an
opportunity to reach this market
of businessmen,
underwriters,
thousands
bankers, large investors, estate trustees, at low ad¬
vertising cost. How?
Simply by taking advertis¬
ing space right now in The COMMERCIAL AND
FINANCIAL CHRONICLE'S Official N.S.T.A.
most
has
a
Governors of the Federal Reserve
ation
System.
aged;
is
one
stable
of
banks
the
in
oldest
Illinois.
it
It
it is well man¬
provide excellent
1857;
will
Remember, The CHRONICLE is where "Contacts
made and business consummated." Especially
are
in the Annual N.S.T.A. Convention
your ad copy and
that your firm is
Issue. So, rush
£
J
5
instructions to us now—to be sure
NOT missing out on a good thing!
<►
;
THE COMMERCIAL & FINANCIAL
CHRONICLE
NEW YORK 8, N. Y.
25 PARK PLACE
i!
and
history of continuous oper¬
since
annopneement about the forth¬
coming issue. And, because it takes so much time
and effort in preparing the Convention Number,
we
urge you to act right away. Closing time for
ads is practically here!
the
banking system to the best of its
ability.
"The
First National
Bank of
Joliet
by
AND
This is the third
in
Bank,
an
—
Convention Issue.
previous 15 cases,
President.
I
19,000 depositors had their funds
*
*
*
protected by the advance of $4,State
Bank
of
Churchville, 078,000 of FDIC cash," Chairman
Churchville, New York, an insured Harl said.
"Federal Deposit In¬
nonmember, was merged into surance Corporation is constantly
Security Trust Company of Roch¬ alert to protect depositors in in¬
ester,
Rochester, New
York, a sured banks from any loss of
State member, under the title and their
funds, and will continue to
charter
There's still
ceptable assets of that bank taken
over
by the First National Bank
ance
Savings
York, according to
County
nouncement
Company
Virginia
First Na¬
Trust
and
Minooka;
(2) Federal Deposit Insurance
Corporation will advance cash in
an amount sufficient to equal the
difference between total deposits
"This
A.
Farmers
about
of Joliet.
ter, who recently retired after 32
years in that post.
*
of the
Bank
of
*
*
was
Joliet will
December, 1937.
*
plan
out:
Aug. 8.
on
con¬
sultation with several banking in¬
ber of the Board of Trustees since
New
*
Bank, San Francisco, Calif., plans
open
an
ultra-modern office
to
place there this year starting September 26th. That
i$n;t too far off, right now.
his
at
of
Mr. Schnibbe had been
Queens
*
National
(1) The First National Bank of
assume all deposit lia¬
died
York,
Borough of Brooklyn
been
Deatly
McAlester Trust
San
■
California
Anglo
Know
the bank.
*
.
President of the
The
McAlester,
as Cashier.
Later he be¬
Vice-President,
and
then
in
Well, the Annual Convention of the N.S.T.A. takes
City
the
*
H.
of
office
Francisco.
worked
He was for¬
merly Assistant Vice-President of
William
Bank
Oakland
recently at
the
York.
New
pany,
Okla.,
came
served
♦
Exchange Bank Trust Com¬
Corn
head
bank's
at the
more
stitutions in the surrounding area,
of
Bank
ings
10.
Frey
the
first
Committee of the Roosevelt Sav¬
ident, it
William
and
all
Rutgers University, Class of 1948.
#
main office
Mr. Richard V. Schnibbe, Trus¬
tee and Chairman of the Finance
Brooklyn, has been
*
department,
From there he went to the First
National
Anglo Bank in its public relations
Degnan-
Company at Wil-
McConnell Coal
Delano, Comptroller of the Cur¬
rency, who has supervision over
*
*
*
the Graduate School of Banking—
*
Brook¬
the
it is reported by the Office there, then returned to the Stock¬ the shopping center to be erected
Comptroller of the Cur¬ yards Bank as President. He had by Metropolitan Life on Cambon
rency.
lyn, Gilbert C. Barrett, President,
1948.
alumnus
Manager
Long
York
New
Harvey D. Gibson, President of
General
and
from $50,000 to $75,-
joined
and
the
to
Franklin
of
capital stock
common
of July 28
as
York
referred to in the Aug. 3 issue
was
of the
a
dent.
the acquiring of
business
by
the
to
banking
dividend
stock
a
increased its
Aug.
Reference
*
Harvey D. Gibson, President of
Through
$25,000 the First Central National
St. Paris, Ohio,
also
elected
created office
*
*
Bank of St, Paris,
of
Board
and Ferol D. Overfelt.
.
♦
000,
Board, also a new post.
Webster
the
meeting the fol¬
lowing Assistant Cashiers were
appointed
Assistant
Vice-Presi¬
F.
Vice-Chairman
elected
is reported by the Office of the
Comptroller of the Currency. The
enlarged capital became effective
July 28.
the
of
of
been
has
City, Ohio, raising it from
$50,000 to $100,000 has occurred
as a result of a stock dividend, it
has
company,
Chairman
Trustees, a newly-cre¬
ated post.
Philip A. Roth, a busi¬
ness
associate of Mr. Guilden's,
Steffan, Vice-President in charge
of
the
of
elected
Board
ap¬
long
com¬
the largest single
Guilden,
been
Vice-Presidents,
has had
the title
with
stockholder
sistant
that
board
be named as my successor."
pany,
J. Andrew Painter
therefore
I
the
to
who
Deatly,
experience
Arthur F. Spellman
turn of the
burton, Okla.
is
company
REctor 2-9570
'
I
::
I
''
22
''
'
and Financial Chronicle
The Commercial
.
.
Thursday, August 17, 1950
.
(642)
countries never al¬
lowed to function fully after 1918.
both
gen¬
A Franco-German, or more
In all these functions
organization.2 All purposes.
—which are certainly not only ex¬
distribution of the
ecutive and admistrative but to a
national product between classes
and
individuals
become trivial great extent legislative—the High
compared with the aim to reach Authority (by majority vote, or
in what other way?) is practically
within ten years, at least in the
manufacturing industries, i.e. the sovereign, aside from the checks
palatable to antimonopolists,
the intended coal and iron pool is
a cartel according to the economic
and
legal terminology.' Cartels
more
steel could even are contractual organizations of
revive the sensible division of pro¬
-separate firms for a limited period
duction which before 1914 tended
to regulate their market.
There
to concentrate the heaviest steel
are many ways to reach that aim.
products in Lorraine (and Luxem¬ The cartel may determine produc¬
bourg), where there was always a
tion, or areas of distribution, or
scarcity of labor, and to leave the
prices, but at any rate as long as
lighter and more finished prod¬ it is the organization which influ¬
ucts to the Ruhr with its greater
ences the market by common ac¬
supply of skilled steel workers.
tion
of
otherwise not merged
All this could be accomplished
firms, it remains a cartel, whether
by the introduction of normal free perfect or imperfect, voluntary or
trade in these raw materials and
compulsory by law.
industrial
products,
either
be¬
Aside from
the old Standard
tween the neighboring countries
Oil, the American Tobacco Co.
or in the world in general, by the
and a few other trusts which were
derogation of state- or cartel-made dissolved 40 years ago under the
normal
agree¬
private companies
ments between
of
of any
elected
eco¬
or
coal,
steel, provided
and
ore
that this trade is
systematic
of details re¬
interests
after the discussion
vealed the contradictory
Schu¬
mann or Mr. Monnet goes
much
further than the opening of fron¬
tiers for goods and capital.
While
it tears down the barriers of cus¬
preferences
and
duties
tom
of Mr.
project
the
But
surface in the
be¬
it sur¬
rounds the whole industry by an
member states,
the
tween
higher
even
and
of
wall
trable
impene¬
centralized,
more
one
monopolistic organization of coal
and iron for Western Europe and
United
the
of
internationally
Kingdom as well.
struc¬
the
be
should
Whatever
of
the
proposed pool, this European
and
iron
union
would
be
coal
conditions
the
and
ture
the
strongest economic unit that exists
or ever existed in the capitalistic
world, i.e., outside of Soviet Rus¬
capacity of say 500 million
tons of coal and 50 million tons of
sia.
A
Kingdom,
United
the
with¬
of these figures
two-thirds
out
Britain, or even
including
steel,
sur¬
not only in absolute quan¬
of production
the United
States Steel Corporation; it means
passes
tity
the
of
100%
the member
production
total
of
states, against 30% of
Big Steel in the United States (or
at the time when
the Steel Corporation was formed
even
say
1901
in
these
65%
by
J.
figures
whole
not
was
the
convey
the
The American Steel
combination.
as
not
of
impact
Trust,
Even
the
proposed
P. Morgan.
do
the time,
it was called at
assisted
government.
or
protected by
To the contrary
"Big Steel" had to be careful to
avoid prosecution under the anti¬
trust laws.
In fact while grow¬
absolutely, modernizing its
and spreading its mining
ventures now to South America, it
in
protecting the marginal or
sub-marginal producer by estabing prices high enough for his in¬
efficient and outmoded machin¬
contrary to the trust which
production in
the
concentrates
cheapest working plants.
But this is only a half-truth.
cartels
The
five
and
there
fluence
onMthe trade and
has steadily
Notwithstandingname
change of
may-'givebit to
i.'.jii.
1 The
any
make it
r-.oi-
customf,union
of
Belgium, Holland and
France, Italy
Luxemburg.
for
publicly the report of the Higher
Authority and may by a two-third
vote of censure recall the mem¬
generally between
and aggressive lead¬
ers, the survival of the fittest and
the disappearance of the unadapt¬
able
was
accomplished by the
progressive
preparation for the renewal of the
cartel. The strong members ■ asked
higher quotas on tfyebbagds of
for
technical^ingtallations, their low cost of production
and their financial resources.
In
modern
their
most
cases
a
short period of un¬
restrained competition, or the fear
anticipation of its
outcome reduced the influence of
the unfit more and more, if they
and
it,
of
did
the
at
cartel-
not sell out their plant, or
by
Monnet's
"Document
which
Mr.
lished
on
duce
Court of Arbitration
"modify"
ploy in order to
the
protect the in¬
consumers
of
this
independent
super-cartel,
less how the technical
but
even
and
economic progress would
be
compulsory monopo¬
listic covenant either to last until
assured in
for
a
a
(or at least
period of 30 years).
Today it ought to be evident to
every
to
seems
Trevail"
from
a
with
a
rium of
com¬
a
the interior equilib¬
country ("demander
.
or
.
modifier."
de
mander"?
de
What
of the
What
join
in
Europe"
blue
print of
draft of a
a
not only the
curiosity, but the critical spirit of
the cartel specialist, as well as of
the scholar of constitutional law
proposition
and
arouses
cartel
of
technique, the "Document de Tra¬
vail" contains some forms of or¬
constitutional lawyers
the
for
as
scholars, it opens at least as
and
questions as it answers.
very
indistinct
wording
to
imply the
following
many
Its
seems
Authority of
Coal and Steel
The High Authority, i.e.,
practically dictatorial man¬
is not installed by the
industry, but by the ensemble of
(1)
partial fusion of sovereignty
terminable only by
unanimous consent of the partici¬
eternity,
in a board
of High Commissioners (6 to 10)
who shall be appointed
by the
pants, is to be vested
joint governments (ensemble des
gouvernements)
for six
years,
one-third of the members retiring
observer that the economic
problem of Europe is solvable, but
solvable only by an enormous in¬
On the other hand,
expressly veto any investment
or
new
installation, but it can
make the best planned project un¬
or
practical
and
unprofitable
by
subsidizing competitive plants.
This opens the door to many
frictions
and
contradictory
de¬
cisions of the various
an
In practice this is apt
to lead to continuous fights be¬
tween
the
industrial companies
2 Vide
who
the
teams
of
studied
reports of
the various Brit¬
and employees
production.
employers
American
theme
the
of
one may con¬
sovereignty
or
the problem
delegation of
to
a
supra-national
could work when in every
other respect the sovereignty re¬
mains national and the duty of
body
and
governments
respective
sovereignty, as
States like
Switzerland, Germany,
Every division of
it
Federal
in
exists
A.,
British
necessities
the
and
Dominions,
is
a
between the
centralized policy
compromise
great
of
aim to
restrict this cen¬
workable mini¬
an easy task.
Even the broad lines of division
between Federal and State Rights
tralization
This is
mum.
in
have
not
all federal nations some¬
where and
or
to the
sometime been curved
However,
dented.
it is rela¬
tively simple to leave or apportion
to
the states
all legislature on
schools and churches and to
give
federal governments the sov¬
the
in
rights
ereign
the
field
of
credit and trade. The dis¬
tinction between state sovereignity
money,
in
intrastate
commerce
ahd fed¬
in
interstate
could not avoid compli¬
sovereignty
eral
commerce
and im¬
unified policy in
paralyzing the working of the the United States (cf. The Schechcartel, or with the final outcome ter decision of the Supreme Court
which
practically
ended
the
that either the H.A. becomes the
But to let the superstate
master
in
every
respect, or is NRA).
and
with
H.A.
the
the
result of
—if there is
mines
to
steel, and the states about mineral
oil and nonferrous metals; allow
In
all
the
to
have
the
certain
probability
the
plants
who
steel
grievances
succours
national
will try
of their re¬
governments,
only very lim¬
having delegated
but these can offer
ited
assistance,
their rights to
other bodies.
proponents of the plan may
answer that pluralism exists also
The
in
competitive
terprises
or
arguments
of a
administration rule about coal and
and
find
and
pairments
will of industry
sufficient majority for a
policy.
cations
enough pressure and
forced to obey the
spective
ish
not
pyramid of the
itself.
try
ports.
for loans or grants to
the
In fact it
tangential to the indus¬
rather
is
feel
and
greater because
outside body and
industrial organization.
specially to prices, wages, and it
seems
to the regulations of ex¬
money
the
of lacking coordina¬
The danger
a
tax
in
coal and steel fields.
they may be over¬
ruled by the H.A. which sets the
law and executes it.
This refers
coal
gremia and
enterprises
individual
is
Authority has a right
a purchase tax on
iron.
It may use this
inter¬
technical production
fere with the
the summit of the
taxation by
fusion
the
directly
cannot
H.A.
The High
the
how
or
it
majority vote—is not stated, but
only stipulated that they are not
the represenatives of a single na¬
of
pool,
fine the discussion to
prices, wages, and industrial
trol
the
Authority,"
limited
the
For
coal and steel
S.
is
at least
America.
U.
can
tion
tion, but owe allegiancy,
study
economic and finan¬
questions in their relation to
European
on
tax the output, con¬
it
nomination and appoint¬
ment—whether unanimous or by
of their
plained in a comprehensive
parliaments unimpaired.
the
two years
certainly not one which the U. S.
should further.
This shall be ex¬
the
(as in the U. S.
Senate, or similar to the Atomic
Energy Commission). The method
every
and
aim
unrealistic
equally
an
agement,
policy,
A
for
that
convinced
is
writer
the
while
Common
High
(1)
of
Weimar Germany.
governments.
proposition:
Council
Coal
the
in
Atlantic "cooperation."
and
the "Fed¬
eration" of Continental Europe is
cial
government.
the viewpoint
instance
a
for many years to come,
1950,
legal treaty or of a
For the cartel specialists, as well
remains
pean
Cartel Technique
Plan and
This
similar legal feder¬
Western Europe while he
the champion of Euro¬
of
ation
States ,,of
"United
a
or
.
Ill
has be¬
Utopian to expect Britain to
come
This
The
Schumann Plan,
June 27, it definitely
on
is cer¬ ganization which seem more or
less novel, even if one can find
draft of a
some germs or nuclei of them, for
legislative bill.
27,
Churchill's speech in the
Commons on the
"modifier"?)
From
de
pool.
After
"de¬
means,
fundamental
inherent,
The
problems are concerned with the
constitutional and political side
its decision in case it
jeopardize the economic
expansion
methods he proposes to em¬
of
ma¬
not restricted to legal
questions.
This
Tribunal
may
"ask"
the
High
Authority
to
lized
to the
against the
raised
de
objec¬
other
many
be
may
"Document
petence
Travail"
Jean Monnet has pub¬
June
two-third
It is contemplated to intro¬
furthermore an appeal to a
(4)
Travail"
"Document
a
jority of the H. A.
regarding their work as managers,
their quota of the
to the not yet existing suprana¬
product, to the more efficient tional community.
companies, preferring a profitable
While
many
consultative and
morphium slumber or euthanasia
to the unequal struggle for life regional associations of employers,
laborers and consumers may be
and death.
allowed to function and even be
So far Mr. Monnet has not satis¬
asked to perform by delegation
fied the curiosity of economists as
some
of the work of the "High
least
and
These
tions
and
H
a
years.
death them separates
which Mes^ts. Schumann or
Monnet
and
market
decreased.
formed
As long as
in the industry some
ten
were
most
next
were
limited period,
terests
only twice as big as its
competitor; its relative in¬
criticized cartels
for
ery,
IV
Constitutional Problems
tainly very far from a
period.
One has often
plants,
today
which
characterized their early ad¬
venturous
the
and
irrespective
of
system of checks
field,
American
everywhere bers of the H.A. or force them to purely technical standpoint of
else where similar forms of or¬ resign.
cartel organization. However, this
(3) While the assembly is not
ganization have been inaugurated.
need not imply that the difficul¬
sitting, the participant govern¬
It has troubled even the socialistic
ties could not be overcome or at
ments (or in some cases of special
members of the original Commis¬
least
greatly diminished, if we
interest,
the
individual
enter¬
sion on Nationalization in Ger¬
would confine our analysis to the
prises) may ask for a rehearing
many in 1918-19 (Sozialisierungsquestion of cartel organization.
and a decision
The
misuse of this great power
had
ing
is
later
in
sovereignty
undivided
the
is
So far it has not
This common assem¬
jor interest.
nationalized indus¬
Britain
of
tries
industrial
vented
can
change or abolish their own cre¬
ations.
Somewhere at least there
bly convenes once a year, debates
leaders, pre¬
years the worst
cautious
which
parliaments,
their
and government supervi¬
sion, influence and interference on
the other hand, has come to the
higher pro¬
hand,
Mr.
any
of forward looking
legislative interference of
sort the
balances.
self
and
Court—if not
restraint
government agencies subject
to the control and in the last re¬
jority or of proportional repre¬
sentation, a point which is of ma¬
to
leads
it
whether
ence—either directly or by a spe¬
cial Cartel
countries.
of the various
Germany
Weimar
in
are
been
interfer¬
government
similar institutions
or
cartels
for
ductivity or not.
The problem of industrial and
economic independence on the one
—
as
of
menace
rates,
way
this
anything
world
considered from
economic stand¬
the
America regulates rail¬
in
which
published whether this elec¬
tion may be on the basis of ma¬
Europe
as effective and
the great German kommission) which was probably
coal
and
steel
cartels of
the the first gremium to discuss these
a
rational and
Wilhelminian and Weimar periods questions systematically.
In fact this problem can never
point and not governed by na¬
(the
Rheinische
Westphalische
tionalistic sentiments.
Kohlensyndikat and the Stahl- find a definite satisfactory solu¬
If the big words used by the
werksverband) or the Kalisyndi- tion under a socialistic, semi-so¬
French diplomats and echoed not kat ("Potash Syndicate"), which
cialistic,
or
centrally planned
only by the German chancellor, since the beginning of the century economy; at best it may find some
workable compromise. Anyhow in
but also by such prominent Eng¬ was a compulsory organization of
lishmen as Lord Layton and Sir all German potash mines owned a national cartel or trust or gov¬
owned
industry, there
Arthur Salter, and with some cau¬ privately or by state governments. ernment
tion by the leading officials of the
always
remains the power of
These German syndicates suc¬
American State Department and
legislature to curb, to modify, to
ceeded in providing very good and
end the monopoly which it has
the ECA, were just good publicity
even
relatively stable profits to
for such limited aims, one could
created, or at least tolerated and
their members — no doubt of a
be
well
satisfied remembering
protected.
It is difficult to see
higher normal average than free
what substitutes for the undivided
that other European projects, as
competition
would have given
the'Tritabel,"1 were launched with
sovereign power of the state Mr.
them.
Monnet wants to introduce in or¬
similar fanfare, only to end in
Anyhow the actual or potential der to
frustration and well classified files
guard the guardians.
of
or
that, for example, the In¬
terstate
Commerce
Commission
by the respective parlia¬
ments each year.
organization in
public or private — is
system
this refutation overlooks
fact
raw
testing stone
The
nomic
agencies.
its
government
But
materials and balances enumerated sub. 2.
(2) The High Authority is re¬
into finished products, the same
output per man hour which the sponsible before all the citizens
United States have attained today, of the participant countries (en¬
semble des citoyens) represented
and then to strive for the Ameri¬
by a common assembly which is
can records of 1960.
existed
never
administrative or legal
and interferences by
the
of
transformation
Antitrust Law,
there
in the capitalistic
Sherman
and
which are
trade cartels
ligatory
for
or
intrusions
questions
eral free trade in
price differentiation, and
industrial
and financial
enterprises
subject to
chinery
Plan
And the U- S. A.
of
various
the
guaranteeing loans for investment
implies most efficient ma¬
which
The Schumann
tern
productivity of labor,
in the
crease
i
Continued from first page
independent
en¬
in voluntary or ob¬
the
pseudo
federal
authority to
proclaim minimum wages for iron
workers in all constituent coun¬
leave the state gov¬
the task to adapt
their economic and social policies
to the fact that five or ten per
cent of the workers have reaped
the
advantages of
a1 minimum
tries,
but
ernments
wage
with
far above the general leveL
is clearly unwork¬
Serious conflicts betweerl
of the country,
able.
Volume 172
Number 4934
The Commercial and Financial
Chronicle
.
.
.
(643)
the national governments and the
H.A. cannot be avoided.
Presum¬
ing
the
and
H.A.
minimum
them
to
upon
prices
in
wages
sticking
hearing
decides
some
force
at
least
(subject
to
third
the
and
bunal),
if
law
a
time.
After
the
the
divided
with
the
either
can
old
in
ma¬
Parliamen¬
common
Assembly,
govern¬
managers
reap¬
or
new
of
a different industrial
pol¬
Even though the majority of
the H.A. may remain the same as
before, the conflict between the
ones
icy.
three
bodies
High
Authority,
Common Parliamentary
Assembly,
and Joint Meeting of State Gov¬
—
ernments—may drag
any length of time.
With
the
intention
to
on
de Travail" proposes
body,
resolve
confined
to
fact this
One could
tribunal
not
questions of law.
In
only complicate the
can
whole apparatus even
a
fourth in¬
a
Tribunal
a
more.
perhaps imagine such
as
safeguard against
a
undue discrimination between the
constituent
countries
producers—despite
the
whole
pool
is
and
extend
to
the
single
fact
aim
of
special
the
industry,
of
loans, etc.
heavy machinery, turbines and
stations, may ask for sim¬
ilar sovereign
powers
plementary
But to
questions
could
be
judicially decided.
one
coordination, the correlation to
the independence of judicial
pow¬
is
an
Courts to the function of interpre¬
tation of the given law and a pre¬
vention of judicial authorities to
set
arbitrarily the political,
nomic and social aims, and
to
means
reach
eco¬
the
these
aims.
er
This separation of judicial pow¬
from the legislative or execu¬
tive is essential in
try,
whether
and
it
with
of
is
an
federative
absolutely
have
traditions
same
separate
neither
the
nor
litical and social
not,
institution
entirely
which
coun¬
or
imperative
international
otherwise
countries
single
a
same
the
po¬
philosophy.
It is difficult to believe that this
whole
plan
of
High
Authority,
Parliamentary Assem¬
Common
measures
to compen¬
the losses—
region for
emergens
or
lucrum
cessans—which the coal and steel
combine has brought about.
This is not
distant
a
theoreti¬
or
the French and the German
agri¬
culture.
And
other
industries,
long history of state pro¬
tection and
assistance, are sure to
with the
raise
their
of constitutional law and
political history.
The plan shows
the typical features of technocrats,
least
of
technicians
the
over-compensate
who
mathemati¬
cal
voice
for
equal
treat¬
Perhaps
the
is
it
Plan
that
secret
its
until
fields
origin
of
inventors kept
the
of
"Give
listic
me
moment
tries, trades,
ductions.
agricultural
or
whole world
prise."
of
its
of
of
bedy: could
regulate
sovereignties
which
hollow
out
the sovereignty of the constituent
countries for
One
kind
a
of
guild
be¬
wars
and
ions
whether
not
or
the
U.
S.
A^
free
available
today
August).
But
life—despite
enter¬
autonomous
practically
preventing,
for
example,, the erection and the
supply of sheets to a new auto¬
in Holland,
of
or
a
after
& Co., Bear, Stearns &
Co., and Ira Haupt & Co., all of.
New York
City, headed the na¬
of
Schu¬
Mr.
tionwide
alysis ought not be delayed
any
longer. Public opinion has to be
$25,000,000 Puerto Rico Water Re¬
sources
Authority 23/4% and 2.80%
prepared
electric
wrote
an¬
for
six-power
the
day
committee
when
port.-
4
*
at
'*
large scale
—
expansion
gard
investment firm
of
of
revenue
for
evidence
held
of the high re¬
investment circles
by
Puerto Rico bonds.
Walt Clyde Opens
Plans
Walt Clyde is
engaging in a
curities business from offices
the
of
under¬
issue
new
prices to
further
In Western Penn.
PHILADELPHIA, Pa.
recent
2.80%,
Tyson & Go. Expands
for
syndicate which
the
bonds. Reoffered
yield from 1.30% to
the bonds were
quickly
absorbed by investors. The
speed
with which the issue was
disposed
of by the underwriters
furnished
the
(France,
Germany, Italy and the Benelux
countries) shall publish their re¬
Tyson & Co.,
•1
At
rate it
any
ishing
that
•
is rather aston¬
of
many
officials,
the
highest
as well as sena¬
congressmen, consider the
"pooling"
(i.e.,
the
centralized
direction of coal and iron
produc¬
tion)
ideal aim, and any oppo¬
a severe
political mis¬
take, if not a moral fault.
an
could work in prac¬
never
se-.-
In
fact
High Authority for coal
be charged to take
iron
will
tomorrow of the heavy chem¬
care
ical
industry,
and
so
but
the
local
it
comprises
trades.
This
achieved
in
almost clandestine
It is
non-
agriculture,
all
means
partial economic unity
a
Federation
in
of
year
and
until
on
in fact
next
metals
or
steps and
it
is
this
hope
at
The firm which
recently opened
offices in
Pittsburgh is now ex¬
High Author¬
ity for coal and iron also dictators
for
great
a
the
of
part
whole
European economy. Certainly not
the
kind of
same
coal
manage
meat
and
and
potatoes,
television
In
iron
and
fact
be
the
or
cannot,
real
a
which
A.,
many,
of
constitution
the
main
federal
a
the
or
Ger¬
and
British
great
This,
char¬
state, like
Switzerland
minions.
super
except on the basis
embodies
S.
radio
theoretically,
even
federal
acteristics of
U.
as
industry.
planned European
this
conceived
of
well
as
economy| consisting
NRA's
able to
are
men
Do¬
is
however,
no
practical issue.
is
Plan
ners
coming
enthusiasm
Schumann
for
Peace
economic
plan¬
and
the
understood
this
of
many
project
can
the
upon
Mr.
Ameri¬
only be
supposition
organization
will
miraculous
a
of
have
effect
of
There
there
in Europe and espe¬
ending the tension be¬
were
are
—
Germany.
and
weeks.
who
propagated the theory that the
capitalistic competition of various
countries
was
ternational
sided
at the root of all in¬
conflicts.
materialistic
history has been
adays even by
This
one¬
conception
discarded
who
many
of
now¬
are
otherwise followers of Karl Marx.
To
claim
del
the
tical
does
the
wars
to
be
the
competition
and
Schneider-
Thyssen and de Wen-
or
were
world
that
Krupp
with
in
great
a
the
is
tension and the
the
detail.
wars
that
Or
the
between the
.
Samuel Sacks
to
Open
Sacks will engage in a
securities business from offices at
1874
Third
Avenue, New York
with
of
and
It
be
can
the
probability
changes
constellation
discerned
Denver & Rio Grande Western
of
improving recently and, concomitantly, there has been
ceptible improvement in sentiment toward
the road's
financial
circles.
Continental
prevent
does
gets
super-national
a
court.
The
of the international regula¬
scope
tion
will
which
will be sharply limited and
rights not given up to the
the
super-cartel will
be
"reserved
to
the states and the people."
If
by no other signs, this is al¬
ready indicated in the position
taken
by the Belgian industry, fi¬
nancially strong, technically re¬
constructed, and economically ori¬
entated toward export and
national
inter¬
trade.
Reduced
cartel
of
to
an
national
amended
inter¬
cartels,
Schumann
receive not only the blessing
of the present British
government,
but even of the Labour
Party it¬
self,
as
soon
the
as
respective
opening months
of
the year
per¬
the operat¬
par¬
thing, tho
revenues from bitu¬
coal than do
any of the other western carriers.
Thus,
hard hit by work
stoppages in the mines. Also, labor dif¬
ficulties in the coal fields
affected production of steel in the
important mills of the Provo-Geneva area.
was
Also, relative to
a
year ago, it is likely that the road suffered
milder weather in other
parts of the centralwest
In the winter of 1949 some
them
Some
was
Grande
of
the
business
unquestionably
Western
routes.
that
would
diverted
There
normally
last
was
year
such
no
to
have gone
Denver
to
&) Rio
windfall traffic dur¬
ing the 1950 winter months. These considerations resulted in
an
important year-to-year decline in freight
volume, and, at tho
same
time, a significant rise in relative operating costs.
Month-by-month for the period through April the
transporta¬
tion ratio ran consistently above the level
of a year earlier.
Tho
cumulative rise for the period
the rise
was
not
was
disconcerting to railroad
pressed
as
1.5
was
points, to 38.3%.
particularly substantial
to the
In itself
but the unfavorable trend
analysts.
Concern
was
being
possible duration of the trend and many
.
ex¬
ana¬
lysts were inclined to adopt a "wait and see" policy. More
recently,
however, there has been a decided change for the better in tho
operating figures and once again many of the analysts have
been';Adopting a more aggressively constructive attitude toward
the-ldrig-iterm prospects for the road and its securities.
'olftf-more recent months
and
at
charges have
that,
provement has not
portions
been
income
net
offset
to
to
been
they
the
on
were
Taxes
in 1949 but
uptrend.
This
/
slide off
considerably better control.
higher than
has
have continued
revenues
but expenses have been under
even
recent
im¬
yet been of anywhere near sufficient pro ¬
earier declines.
As the common stock has a
as
Trade-Unions have found it advis¬
able to become at least associate
substantial
members of
first half of the year
tries
to
an
organization which
protect
and
to
raise
leverage represented by requirements on senior secu¬
rities, per-share results have been particularly affected. For the
other
reserve
earnings
on
the common, before sinking and
In the opening half of
funds, amounted to $0.58.
share
profits and wages in their indus¬
1949, $2.83
try.
The company normally experiences a pronounced seasonal
bulge in traffic and earnings starting in August and running right
through the final month of the year. The prospects for operations
Third:
If
the
Schumann
plan
six
original powers, the influence
of the
"Haute Autorite" would be
considerably
reduced,
compared
with Mr. Monnet's original
propo¬
sition, and decisions and the prin¬
cipal questions of policy would be
left
to
a
ministers,
vote,
at
council
if
of
not
least to
government
by
a
unanimous
high qualified
majority.
Fourth: When this coal and steel
combine
have
ion
—
which
enormous
start
that
and
will
anyhow
economic power—
working,
American
sentiment
one
may
public
may
pre¬
opin¬
change
fundamentally from the present
enthusiasm for European
integra¬
;
competing roads were
completely shut down by heavy weather for
fairly extended pe¬
riods.
a
plan
the
larger percentage of its freight
a
minous
it
even
safeguard these national
against the interference
interests
of
nations
agreement
any
not
In
one
road
and southwest.
the
sign#
a
securities in
ing and earnings performances had been
quite disappointing,
ticularly in comparison with a year earlier. For
of
dict
in
.
Denver & Rio Grande
Western's operations have shown
somewhat from
really too fantas¬
pretend
deal
scenery
First:
will
refuted
anybody
for
*.
.
ford, Altoona, Dubois, Erie, Johns¬
town, Meadville and Warren, in City. He was
formerly with Green¬
each city the firm's
plans call for field,
Lax
&
Co.
and
Donald
representation by local men.
Young & Co.
today that the divergent interests
two
cause
But
the
should be accepted at least
by the
today
socialists
some
—
even
was
Co.
Samuel
tended its representation to
Brad¬
the
foresee quite a number of
may
the
of
knowledge of European economic
and political conditions, one
may
much
expect from the super-
may
cartel,
and
the
intention
make predictions for
Second:
Whatever
the
not
who
ers
state
The
He
&
Street, New York
formerly with Hun¬
?
; v L.V.*
-
by
writer of this article to imitate
the columnists and radio announc¬
hardly imaginable to make
the members of the
ter
24th
for
conciliation
during the coming weeks.
way.
City.
announced by Albert B.
Ty¬
tegration which is the basis of this
one-sided and biased posi¬
It
Or the
East
sition to it
tice.
and
144
Inc.,* Lewis Tower Building,
throughout Western Pennsylvania
very
new
steel alloy which may bring about
Allen
(beginning
mann's recent refusal to
give ad¬
ditional information even to
the
French Parliament, a critical
trade
which
originated in
Britain in the famous
year of the
independence
of
America
and
which is now considered
part of
the American
way of
Taken by Investors
sufficient knowledge of the details
tion.
Creusot
use
two
the
or
electric
Germany or
Britain and
Germany?
There may be
divergent opin¬
complex economy of independent
Authorities in order to see
between
and
the
A.
of
Revenue Bond Issue
the in¬
on
the pool, even more than the
very
debatable zest for European in¬
guild pseudo capitalism.
only to visualize such a
High
all production and
consumption in
manufacture
S.
Franco-German
so¬
or
has
the participant states,
mobile factory
U.
U. S. A.
France and
a
the
subvert the
individual
this
cartel
prevent
tors and
interests, may coop¬
erate or fight
with each other,
creating
instead
of
historically
founded national
sovereignties, a
dozen of separate
industry-wide
tween
it
Without strict limitations
powers,
bulbs
with separate
of
important monopo¬
outside the competi¬
can
Ponts, the British I.C.I.,
that case, a number
of supra-national
authorities, each
pacification
an
point
pro¬
arrangements between the
Farben and the American
tween
pro¬
In
cially
Travail."
tive system and I
record
Or, on
hand, did the patent and
international
Large Puerto Rico
co¬
son, President.
for
intended shock effect of its publi¬
the meager form of the
de
world—were
for
ism.
the
cation in
"Document
du
uli-
industrial
This article is based
were
One may copy the
Authority for other indus¬
poltically
relations.
characteristic
technological
the
duction of coal and iron?
G.
of
lossus.
this
placed by dirigism and mercantil¬
that
human and social
of
determined
many
monopolistic
when
the
incompetence
against
organization.
cans
enter
laws
struggle
the other
denunciation
Other industries
may be organ¬
ized in an intrastate
thinking needed in their own
sphere by a fantastic romanticism
they
to
Hitler's
conquer
a
the
breaches and deviations in
fact and in law—a
system which
at present in
Europe is largely re¬
edge
at
to
only
to
to
American monopolistic tendencies
and
the
demand for protective
III
possibility;, already people arei should use its power of the purse
clamoring for a supra-national for establishing in Europe that
authority, a fusion of interest for system of free competition and
bly, and so-called Tribunal, has
originated from men with knowl¬
or
Napoleoon
cal
absolute restriction of the
permissible
will
I.
com¬
damnum
ferrous
think about
may
the division of legislative and ex¬
ecutive powers and their need of
er
their
for
or
and
cartel
power
with
other
than legal decisions is in the line
the error now not uncommon
Whatever
another day the makers
and
diplomatic
that it
grants
compa¬
Tribunal
political
in
psychological effects.
Tomorrow the heavy chemical
of
that
many
other
material results as
in
as
cialism
that
individual
nies in form of
entrust
or
the
declared
to
favors
on
ment with coal and steel.
for
these problems of unco¬
ordinated policies, the "Document
terfering
Basmarck
super-
Napoleon, from
tion
High
and
on
of
some
alition of 1792 and
possible
European
impact
industries
sate
of
be—or may
may
accord
jority of the
the
be
may
and
be—in
term
members
expires and the
their stand
point
indefinite
an
years,
of
which
ment,
tary
for
re¬
this
all
the
its
well
Tri¬
it
despite
1914
in
two-
no
censure
two
one-third
the H.A.
is
two countries—from
the. time of
Richelieu and Choiseul to the co¬
steel—or
planned coal and steel cartel will
January
Arbitration
there
majority of
mains
not
next
in
have
re¬
government's
until
saving
hours.
safeguards
and
a
protests, the H.A. law remains
of
work
Anyhow,
February,
despite
enormous
in
Parliamentary Assembly
sitting in January of each year,
is
_
an
the
23
a
was
realized
on
the
same
basis.
during the seasonal high period are particularly bright this year.
Steel operations in the company's territory are almost certain to
be at peak levels so far ahead as we can now see.
Prospects for
other
relatively new industries on the line are promising. Finally,
its materially improved competitive position with respect to
transcontinental business the company should get an expanding
volume of profitable through traffic generated by conditions m
with
the
Pacific
With
strikes
in
the
highly favorable
major industries such
traffic
as
second half of 1949, earnings for the
quite
high.
July
switchmen's strike
results
that
will,
was
not
of
outlook,
unaffected byin tho
final five months should be
course,
be affected by the
were
called
off
faced
last year
until the> 'sixth
of the
All in all, it now seems probable that full .year's results
will at least match the $7.27 reported in 1949 before sinking and
month.
other
least
reserve
match
funds.
the
Under
such
conditions, dividends should
,
at
in each of the past two years, with the
second dollar probably to be declared at the August meeting of
the directors.
$2 paid
*
The Commercial and
tion,
Continued from first page
Thursday, August 17, 1950
...
As We See It
Did Not Count on the
But
no one
was
promise very
Kremlin. When the
it were. It was at once evident that
in the Administration had blundered* and blun¬
regime in Washington could possibly be responsible.
the tragedy of it all has reached directly into more
one American home, and will without doubt reach
Continued
banks
placing
the ^public
Bonds,
securities
these
the
with
They
during the postwar years.
And
ther
than
agairi.$ow to make fur-
ready
are
irr
efforts
Well
over
Bonds
the
of
support
Savings'r Bonds sales,
$50 billion of Savings
Treasury
held by the public. This
are
approximately one-fifth of the
total national debt. It is estimated,
is
that the banks have sold or acted
agents Tor
distributing
as
than $40 billion of the
Bonds
mgs
Another
outstanding.
important
war
This
material.
to
ing
consists
service
of
lend-
to enable
operate'their
materials, and
industries
war
them to expand and
plants, acquire
raw
meet
growing payrolls. These industries may again require great
amounts of credit.
Fair Deal
fense
The
De-
new
ment
the President once asked—and more,
probably—will without much question be given him now
that war is upon us. They will be given to him, however,
as a war measure, not an anti-inflation step.
There may
veloped similiar to the "V," "VT,"
and "T" loans of the last war.
the control powers
War
1944, whea ;th<T maximuty
amount outstanding was $8y2 bitof
end
quite a difference. There is ample precedent for the
grant of such powers in time of war; there is none in time
of peace. Grandiose schemes of public health and educa¬
tion and other programs of a like sort are obviously dead
ducks for the duration. So also with some of the worst
This
lion.
the
production
war
major cities, as distinct from the
total of all war production loans
subsidy proposals. There
made by all banks
banks is estimated to
in excess of $20
made by the
be grateful that we shall not be saddled with them
the present.
throughout the
The total of all these loans
war.
in times of
been
may
have
for
billion.
well
Problems which have to do with
which is
now
a
little war,
could grow into a big
of the attention of both
managing the war—
but which, though God forbid,
More than half, or about
upon
improving
or
as
course
our
altering basic policies
which is
war,
is
a
war.
This
may
or
the
credit
of
amount
large -.that it Objects great
the borrower's future fi-
in
nancial soundness, and
of
credit
should be made on
borrower's
and
the sound-
of the loan, every extension
ness
own
merits
the
loan.
the
credit worthiness
and
need for
the
or
our
may
qdested to do so.
As
so
far
war.
as
ness
but if
some
non-essential
commercial
of
should
like
credit,
I
to
communication
urging the banks voluntarily to
appraise carefully all loan applications and the .credit needs of
their customers, to make sure that
the
in
bank
country
ulative
a
stimulate in-
not
do
loans
fiation and
are
not used for spec-
purposes.
We
de-
are
lighted with the response and cooperation with which the banks
are
meeting
this request.
The
Anti-Inflation
begun
Program,
high-
|t proved that more
ly effective.
extensive
acts by
do the
ability
and
willing-
ttp/Jndfeidual banks
jot)/
can
:Z
ABA's
Following.,, the
recom-
&e banks on July
the /Reconstruction Finance
man¬
can
prove
to
be
value again.
Food
and
of
farm
products
1
,|g
are
a
defense
or
war
the
war
RFC deserves
this
sound
nurooses
emergency,
commendation
of
the
policy.
Nothing
if lending agen¬
government were to
make loans that are unnecessary
the war effort, while private
to
follow/policies
of consumer credit
in wartime is again Authorized in
y,
Regulation
of public.^ yitak^vltal-i need^-^ both the the new Defense Act. The Federal
armed forces apd. civilians duHng /ReSefve
Board Will administer
such idea were
.
va
war.
and
throughout
the
postwar period
will be promptly and materially
occasions
period, and
in testimony before Committees
of Congress, the ABA has em¬
phatically pointed out that gov¬
ernment real estate credit policies
Operating opider the Food regulations restricting down-pay-
background of the thinking of the opposk >vJE!Q£..iFEee^Pm-'"frrogfom in World ments
and
On
tightened.
the
during
many
postwar
materially
contributing
were
and
inflation
to
cost of
the high
to
housing, and inducing weaknesses
that could
materially harm the
flow
Continued
economy.
seriously impair the war
can
now
jeopardize the produc¬
effort and
tion
of
goods
war
siphoning
by
other
cement, metals and
materials, and adding to the
force
of
off
lumber,
inflation.
There is
mortgage
excessive
policies,
practices,
and
by
government
housing
credit
terms
We hope that federal
regulations will be so
agencies.
and
laws
justification and no
no
for
excuse
adjusted that these agencies will
conform to sound policies under
wartime conditions.
I also urge
bank in the country to con¬
use wisdom and care in
every
tinue
to
granting real estate loans, to the
end that no additional strain may
be
imposed
overtaxed
our
upon
economy.
Creation
of
tremendous
Army
bases, posts
encampments in wartime re¬
and
Navy
and
centers,
banking
special
quires
and
facilities
terms.
Throughout
a
of
supply
their
number
sonnel
branch
inestiihal^e//; Consumer Credit Regulation
.....
provided by Federal housingmortgage loan agencies'
and
17>
Corporation announced last week
that its loans would be confined
throughout
liberal
extremely
housing that have been sponsored'
In
fQ
the
and services for armed forces per¬
similar to that
established by the RFC, and confine t^eir loans to those that are
ficers gained an enormous amount/ genuinely productive and of aid
of experience&in extending, such- to the nation in wan
loans during World War IL/TMs
'
liquid assets and reserves so
readily available to help finance
war producers.
Bank lending of-
that
mortgage loan terms for civilian'
mendations to
cies
had
not be the time to
policy from the ground
to*
respect
With
uses
would be gained
banks.to finance war
The banks are
again ready to make loans to fi¬
government-sponsored liberal
credit
into the
housing market
production borrowers, there is no
question.
The banks are able to
provide tremendous amounts of
are
management of
course
the
projects
production
war
of
leaders arfe following constructive,
anti-inflation credit policies. It is
our hope that other lending agensuch credit. Never before have they cies of-The government will also
they
We
to
of the
and
of. terms
mortgage credit.
whole
Warning to Banks
,
J,
for
economic well-being
change the
up,
other subversive enemy activities,
The banks are ready to cooperate
The
t
.
Banks Can Finance War
not we happen to be en¬
make the supreme effort to
evident in the
so
risk
and fail to root out the rot
gnawing at the roots of
day in and day out whether
gaged in
bank receiving re-
for loans from war prothroughout this war to
is necessary/
It would avail little to do better in the
agement of this small
with the Alien Property Act,
help prevent espionage and
a.nce
to
two and half years;;ago, was
\
needed for fulfillment of contracts
much in need of radical alteration of the whole
of policy as a matter of peacetime
affairs.
credit.
where
depends not merely
have to do with the conduct of the Korean
fully
property were seized for the government by the banks, in accord-
Voluntary
Production
more
enemy
credit L controls and
ducers
higher statutory reserve requiremake every loan it possibly can ments were Jpqt needed to restrain
without use of the government's credit expansion. $gain I emphaguaranty. Except in such instances size that jj)ap«try^tive, voluntary
problems of World War II were dealt with* land
corresponding suggestions for improvement in the 'way
in which this war is managed. This is particularly true
of its larger aspects such as taxation, borrowing, finance
in general, and relations with the business world, includ¬
ing labor. We shall need all the good counsel we can get
on the subject.
|
really heartening much
other
and
accounts
Control
I urge every
of the
But to be
These
Credit
quests
during the next 12 months at least. That they will be
injected into the political campaign now getting under
way may be taken for granted.
Certainly, it would be
heartening if there were to rise in tK^ranks of the ppjob^
tion some constructive criticism of the way in whichtjga^ny
The economic health of this country
this country in large
amounts, sometimes as accounts
maintained
by
their
satellites,
present in
ABA>S
rower's
war—must of course absorb much
Congress and the Executive branch
war>
fy^s and other assets of enemy
nations and individuals were
government guaranty of the bor-
Conducting the War
last
the
of
start
the
billion of these loans, were
made by the banks' without anr
$11
near
ful
,At
pMrit' out that on
figure represents only juiy 17, the ABA sent every bank
loans outstanding at that time, made by
about 400 of the larger banks in
precedent for turning away from such programs
war than in times of peace, but at least we
more
schedules
-
production loans showed a ^
steady rise between 1940the
be
is
do business to observe
banks
tremendously increased output of
nance
these
essential
housing
the nation's farrfrs dtfMng the war
projects, under Title VI of the
years.
In the* two-year period
Federal Housing Act, on construe-*
1944-45—the peak farm war pro- tion that the government may
duction years — the banks made
authorize. ; We have not as yet
more than 13 | million farm probeen informed as to what projects
duction loans, totaling more than
may be constructed, but we are
$7 billion. The banks are ready,
ready to fulfill any needs for such
willing, and able to finance all
war housing credit.
.qpqessary food and farm producAt the same time we are hope¬
tion during this warP*
Act provides for govern- promptly and fully with the govguaranty of such loans un-. ernment
again
in
performing
regulations now being de- these services if they are re-
experiments in statism—often in the past suggested by
the President—are no longer good political bait. Some of
der
whom
with
and de¬
fense centers during the last war
called for substantial outlays of
War II, the banks financed the
more
total Sav-
of banking is, of course, providing
credit for the producers of war
serious and had been very serious, one can
features of the President's farm
con¬
lenders
payments.
have continued to assist in
an
Meanwhile, it is evident enough that the
Savings
ury
longer doubt.
no
urge
other
credit
similar
The Banks and the War
extensive and an aston¬
ishingly pervasive Communist spy system in this country.
The unfortunate extremes to which some of the Republican
accusers—notably, of course, Senator McCarthy—went in
making charges weakened the entire effort, but that the
was
11
page
I; also
request * all
to
sumer
a
last June.
banks
them
%*•
of terms
suggested
bulletin'sent to
Construction of housing
into
through with it all.
All this came, moreover, on the heels of "investiga¬
tions" which, though farcical at times and more or less
squelched by the Administration at others, nonetheless left
the rather definite impression that the Administration (and
the Democratic regime which preceded it) had been lax
situation
from
the schedule
down-payments
by the ABA in
in
good many more before we are
dealing with
and
all
are
public, ! urge every bank
observe
to
act as if we
entirely*?,but it is just
maturities
and
terms
made
the
hardly fail to see even if they were not always able to
follow the intricacies of international policies.
It was
moreover a situation for which no one but the Democratic
and ineffective in
loan
>■
badly.
the new law.
regulations are
under
new
fully worked out, and schedules of
rationally at alM$ffes.
act
we
and administering
up
the
Until
It is most
devoutly to be hoped that the American/people will not
t-V
lose this important fact to sight.
essential that
as
38th parallel, the political situa¬
drawing
regulations
urgent4ffavwe
year. War may make it more
had not lost our economic reason
Political policy—if indeed there was such a
thing—and military preparedness—if indeed there was
such a thing—were as far apart as the poles. American
soldiers soon were dying in Korea, and the impotence of
our small,
ill-equipped force was soon evident enough.
All this was something that the great rank and file could
a
in
that semi-socialistic fol-de-rol with a war
or
co¬
its
offered
really cannot afford it at aH^af in cold fact we
cannot afford to pay large political bribes in this year of
our Lord,
1950, we cannot afford to
in any other
born again, as
someone
dered
'/■'
we
on,
Kremlin
had counted upon the
Communists crossed the
tion
afford this
have little to
Credit
Board; and again it has
services to the Board
Reserve
Afford Them
II, the ABA's Com¬
Consumer
on
operated closely with the Federal
should be evident to,all that if we cannot
Of course, it
Republicans in their turn seemed to
say that appeared to the ordinary man to
much that was constructive.
War
mittee
in this., country
We Can Never
the
World
certain that many, many thoughtful men and
would feel really heartened.
we are
women
,
Financial Chronicle
(644)
24
instances,
have
banks
been
units.
these
main¬
wherever justified
by defense establishments, since
the end of World War II.
The
intact,
tained
banks
these
are
prepared to expand
and services as
facilities
also ready to
arrangements for
cashing
monthly
government
checks for families of men in the
armed forces who receive depen¬
needed.
make
They
are
special
dency allotments.
As in the past,
special identification systems will
be established for these payees,
especially for the convenience of
those who have no regular bank¬
ing
connections.
of
Establishment
ration
the
system during World
coupon
War
posed tremendous coupon col¬
lection and accounting problems
II
for
Under the leader¬
OPA.
the
ship
of
the
American
Bankers
Association Ration Coupon
Bank¬
ing Committee, ration coupon ac¬
counts were set up in more than
14,000
retail
banks
for
concerns.
wholesale
and
More than 1,550,-
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
..
(045)
000
ration
by
the OPA's six
Many
and
were
banks
tne
Continued
of
gasoline,
other
accounts.
ration
meat,
coupons
The State of Trade and
Customers
through
and
they
as
flowed
The
banks
have
ing overtime
this
concerning
phase
of
the
rationing.
The
past.
Revenue
Acts
during
World
War
II
established, for the first time in
the history of the Bureau of In¬
Revenue,
the
the
withholding
method of collecting income taxes
the source.
The banks have
continued
to
positories
serve
record
Taxes
Treasury
counts.
These
originaly
set
ment
during
They
are
basis
and
United
on
when
I
steel
in
I
being used
year
I
voice
we
at
The
mated
this
this
is still
It
lords
brought
do
this
Communism
to
there is
to
hope that the war
our
of
may
Failing
reason.
be
this
in the defense
part
a
Brooks
&
The
16.8%
above
was
further
a
historical
new
Auto
of
According
is
motor
today
years ago.
Association
the
to
7,631
cars,
of
principal
$500,000
represented
an
to
1949,
120,355
but
Output Improved
interest.;
Proceeds
used to
the
from
sale
will
be
The
properties, and the bal¬
working capital.
offered
tachable
total of
pany's
bonds
warrants
to
units and
144,078 units
almost complete
loss of Nash production due
purchase
60.000 shares of the
stock.
common
attached
to
the
bonds, detachable at any time, en¬
title holders to purchase 120 shares
stock, for
common
bond and
bond at
each
$1,000
shares for each
60
$500
prices ranging from $1.50
share on
1951, to $5.50
per
before
or
Aug.
15,
share after Aug.
15, 1954 but before Aug. 15, 1955.
The
new
per
bonds
are
to
prior
May 1, 1960, and at prices rang¬
ing to 100% and accrued interest
after May 1, 1966.
Incorporated
laws
Nov.
on
pany
draw
23,
1937, the
com¬
originally
produced
deep
rough stampings and
and
assemblies
for
the
automotive,
refrigeration, household appliances
and
other
industries.
these
is
cur¬
in the production
rently engaged
for
It
industries
Commercial
of
new
week
was
models,
made
the
up
in the United States and
agency
of
^153,294
a
total
various
and
industrial
failures
rose
194
to
in
the
week
respectively.
Despite this increase, failures remained 23% below
1949 and
1948 when
176
and
103
concerns
failed
the prewar total of 252 recorded in the comparable week of 1939.
Casualties involving liabilities of $5,000 or more increased to
141
occurred.
and
above
were
a
ago
year
when
of this
132
appeared among small failures, those having
under $5,000, which rose to 39 from 27, but remained
liabilities
below the similar 1949 level.
All industry and
weekly increases in
turing dipped and
than
a
year ago.
industry
the
Meanwhile, failures
in manufac¬
shells, engine pans, brackets, and
stainless
company
also
beer
acid
containers
propane
barrels,
gas
items.
produces
steel
brewing,
steel
only line which had fewer casualties
alloy
cylinders
chemical
for
steel
the
to
basis
of
pound
a
over
the week-end that
delivered has been set
price
a
the recent
on
pur¬
Lard prices
of
livestock
of
the
new
exerted
crop
depressing
a
influence
on
The New York
Loan
repossessions
1949-crop
of
in
cotton
the
week
ended
July 27 dropped sharply to 88,842 bales, from 215,148 a week pre¬
vious, and 215,708 two weeks earlier. Withdrawals for the season
through July 27 totaled 2,689,513 bales, leaving a net stock still
under loan of 500,637 bales.
Trade Volume
As
Responds Modestly to Clearance Sales
Promotions
intensified
promotions began to replace waning antici¬
patory buying as a sales stimulus, consumer spending increased
slightly in the period ended on Wednesday of last week.
Over¬
retail
level
dollar
for the
volume
continued
comparable period in
to be moderately above the
1949, Dun & Bradstreet, Inc..
notes in its current summary of trade.
Clearance sales and other promotions
particularly notice¬
were
able in the retail apparel trade, as last week's volume rose moder¬
Coats and suits
frequently bought by shoppers, in keep¬
Formal dresses and blouses were
in
high demand where promoted.
Men's shirts continued to
attract
wide interest in
many
vicinities.
There was a slight,
were
ing with .seasonal expectations.
nation-wide rise in the sale of children's
The
unit
volume
the
high
wear
declined
food
of
sports clothing.
and
somewhat
of certain
price-level
items
in the week,
helped maintain
The consumer in¬
previous week.
dipned slightly, while some
vegetables were increasingly popular.
canned foods
some
kinds of fresh fruits and
Whilo abnormal
buying resulting from international develop¬
last week, the interest in housea high level by vigorous promotions in
furniture and some other lines.
Besides furniture, there was
increased purchasing of large appliances, television sets and floorhad receded somewhat by
ments
furnishings
was
kept at
coverings.
Total retail dollar volume
of last week
was
in the period ended on Wednesday
estimated to be from 5% to 9% above
a
year ago.
Regional estimates varied from last! year's level by these
New
Coast
to
England
percen¬
for most of the week's rise, re¬
+8; East +3 to +7; South and Pacific
Midwest, Northwest and Southwest +6
+4 to
+ 9;
to
+5
and
+10.
Despite evidence of much forward buying in some commodi¬
was
no
appreciable change in the aggregate amount of
Order volume for the country was
wholesale ordering in the week.
porting twice as many failures as in either the previous week or
corresponding week of 1949. The East North Central States
a slight
increase; declines, on the other fiand, appeared in the
fewer
Middle Atlantic and
that of
the
New
the
other
noticeable
Central
in the New England
States.
Three regions,
England, Middle Atlantic and Pacific States, had
businesses
■,
failing than in the similar week of last
year.
slightly above the level for the similar week a year ago. Slightly
buyers were in attendance at various wholesale centers
than
more
Among
six
regions where yearly declines prevailed, the most
appeared in the East North Central and West South
States.
Price
Index
Levels
Lower
After
from
and
for the first time
in
two
months
failed
to
show
a
year ago.
the
store
Federal
sales
on
a
country-wide
Board's
Reserve
for
index
basis,
the
of 42%
a
recorded
ended
An in¬
the previous week from that of a
in
For the four weeks ended Aug. 5, 1950, sales showed
ago.
rise
was
taken
as
week
Aug. 5, 1950, rose 29% from the like period of last year.
year
Seyen-Week Rise
a
Department
crease
The Dun & Bradstreet wholesale food price index leveled off
week
during the previous week with the number moderately below
from the corresponding period a year ago, but for
of 35%
the year to date
Retail
trade
The index for Aug. 8 remained unchanged at $6.53,
the highest level since Sept. 28, 1948, when it stood at $6.70.
The
withstanding
current
register
in
advance of 3%.
an
remained
York
New
active
last
week
not¬
scale.
figures compares with $5.89
rise of 10.9%.
year ago, or a
Index
steel
on
the corresponding date a
sum
It is not
a
of the
price per pound of 31
cost-of-living index.
total
Commodity Price Index Rises to New High Since
the
July 16, 1948
After
moving in a narrow range most of the week, the Dun &
Bradstreet daily wholesale commodity price index rose sharply
the fact that
scare
buying
was
on
a
much reduced
According to the Federal Reserve Board's index, department
,
.
represents the
foods in general use.
and^bbf-tle&*3r><'
gas" industries, respectively.
markets, east-
sugar
points
export buying showed
ties, there
had
stainless
stainless
and
The
raw
15
quotation fell 135 points to 38.18 cents, from 39.53 a week
Mill and trade price-fixing was in limited volume while
a decline from recent weeks.
ago.
weekly rise.
various
prices
domestic cotton prices throughout the past week.
A mild increase from 1949 occurred in the other
in the
shells for diesel power units, vac¬
compressor
although
moderately from a week ago as the result of more liberal,
marketings.
Persistent hedge selling against CCC pooled stocks and the
trade groups except manufacturing reported
mortality.
was
The Pacific States accounted
requiring chrome plating, radiator
parts,
lag;
tages.
groups.
last
cleaner
to
current
declined
size
A rise also
Food
uum
their
government announced
terest in meat and
in
from
de¬
a
pound.
a
cents
although
their number
155
were
have
to
chase of the surplus of 600,000 tons of Cuban raws.
moved downward as demand
fell off.
All classes
of
Aug. 10 from 168 in the preceding week, Dun & Bradstreet,
Inc., reveals.
At the highest level since May, casualties exceeded
single
and
multiple
stampings and assemblies.
These
include bumper uprights, automo¬
tive grilles and decorative parts
of
types
6.23
raised
dollar sales at the level of the
Michigan
under
current
trucks built
to
Business Failures Extend Advance of Previous Week
redeemable
at 105% and accrued interest
the
changeover
ended
war¬
initially
rants,
30,731
and
a
com¬
These
vacations
plants in Kenosha and Milwaukee for
1,955 cars and 770 trucks built in Canada.
de¬
carry
refiners
suear
8.25 cents
all
the Past Week
175,575 (revised)
of
of its main
output for
and
cars
added to
ance
of
Total
discharge $170,000 of liens
certain
on
inventory,
from
oats
reported in good volume.
was
Reflecting the continued uptrend in
and
of
stated.
closedown
a
noted
crop
ately.
The gains offset
to
demand
was rather quiet with spot prices holding firm
easiness appeared in the futures market.
or
decrease
a
cars,
year ago.
a
Stamping & Mfg. Co. first mort¬
5% sinking fund bonds, due
Nov. 1, 1967, at 100% and accrued
gage
good
a
bookings last week were inclined
large users showed little interest in
Trading in roasted coffees
em
estimated total of 186,750 units, compared with the
an
The
in southern sections of the belt.
with
market
0.9% below the
or
increase of
corresponding week in
previous week's total
amount of new issue of Industrial
close.
the
continued favorable with
crop
American
to "Ward's Automotive Reports" the past week,
production in the United States and Canada in¬
vehicle
creased
way
active
toward
were
offerings pending expected pressure of new, spring wheat in the
future.
Despite signs of resistance to current high prices,
cocoa
values rose to new high ground for the season as dealers
and manufacturers pressed for available supplies.
Offerings from
primary markets continued light.
Business in the actual coffee
spot
the corresponding period two
decrease of
a
total
the
develop¬
crop
flour
other
and
The
according
cars,
week's
firmness
some
spring wheat
quite
preceding week.
Inc.
Co.,
offering
public
Domestic
bakers
were
by
a
showed further
corn
sources.
then prevailing, it stood
freight for the week ended Aug. 5, 1950,
revenue
This
showed
new
was
movement
837.?18
followed
Although market receipts of new
below expectations, there were sufficient arrivals
pressing effect on prices.
to
capacity,
41,429 cars, or 4.7% below the comparable period in 1948.
17)
(Aug.
compared
new
of electrical energy distributed by the electric
industry for the week ended Aug. 12, was esti¬
6,253,141,000 kwh., according to the Edison Electric
at
fntnled
By P. W. Brooks & Go.
a
industry,
power
Loadings of
Go. 5c:
70
making
entire
Carloadings Turn Lower
of
Stamping & Mfg.
W.
the
A month ago, based on
amount
Railroads.
P.
for
smaller capacity
the
of the output reported for
country.
Ind,
on
wheat
corn
eastern
1,930,600 tons of
98.2% and production amounted to 1,894,800 tons;
choice but to plan and
no
our
week
a
It was 5,677,000 kwh. higher than the figure reported for the
previous week, 723,051,000 kwh., or 13.1% above the total output
for the week ended Aug. 13, 1949, and 935,417,000 kwh. in excess
could be avoided.
war
14, 1950, compared to 99.9%
Output for this period established
high record for the industry.
hoped until
had
country,
Korea that
this week
Institute.
nation during the war, as we have
in peace.
We, like everyone else
in
announced
Output Advances to Further New High Record
light and
determination
aid
Cash
of
country
to
castings
based
ago,
strength
in demand, continued favorable
up
harvesting reported under
some
week ago.
a
slowing
Cash
83.5% and 1,538,300 tons.
all
for
the
can
Institute
operating rate is equivalent to
and
was
Electric
speak
our
that
Steel
by the
Treasury.
that
ingots
rate
the
"ready and active"
a
week's
early
wheat and
week ago.
a
condition of the
rise of 0.2 point.
1,926,800 tons
been closed.
throughout
all
do
to
were
govern¬
War
and
for the week beginning Aug.
This
with
Both
near
American Iron
ago, or a
Ac¬
accounts
for the
never
are
know
Loan
World
States
bankers
War
up
1917, and have
I
are
being placed by the banks in
now
special
they have scored smashing advances.
row
a
that the operating rate of steel companies
having 94% of the steelmaking capacity for the entire industry will be 100.1 % of capacity
government
collected
so
in
steelmaking.
The
special de¬
as
these
for
week
second
For
Gains scored this week have exploded, "The Iron Age" steel scrap
composite price $1.08 a ton to $40.25 a gross ton, near the high for
the year ($40.92). Much of the
strength in scrap prices stems from
at
funds.
Careful policing of orders by the steel industry leaves
as the best source for this business.
Scrap prices have again blown the lid off the market.
passed
A
the Chicago Board of Trade
on
week
ments, and uncertainty over possible price control legislation
the principal factors in the easiness of the market.
work¬
are
irregular last
losses from
on
foreign steel
Federal
ternal
brokers, "The Iron Age" points out,
gray market deals, and some cold-rolled sheets
have been sold for as much as $260 to $280 a ton.
But the gray
market can't make much
headway in the face of its bad record in
a
great fund of experience to draw
upon
Aug. 8, a new high since July 16, 1948, when it stood
The latest index compares with 280.71 a week earlier,
on the like date a year
ago.
general decline in values.
told
are
The curbstone
the channels of industry
trade.
on
Grain price movements
mostly
mation is
required to handle
were
coupons
Industry
they will get faster delivery when this infor¬
supplied.
The tonnage still comes out of their quotas.
One producer is even setting aside a definite percentage of its
production to take care of government orders.
Special
personnel
to 284.17
at 284.33.
bookkeeping
procedures, techniques and trained
these
5
page
and with 238.99
credited and debited to these
were
from
under
rationing programs.
billions
sugar,
accounts
coupon
maintained
25
in
store
sales
1950,
advanced
New
19%
City for the weekly period
York
from
preceding week a rise of 38%
similar
an
week
increase
showed
a
of
of
1949.
25%
For
was
decrease of 2%.
In the
(revised) was registered from the
the
noted
to Aug. 5,
like period of last year.
the
four weeks
and
for the
ended
year
Aug. 5,
1950,
to date vo.uime
J
The Commercial and Financial Chronicle
26
Continued
jrom
.
normal
in
States
the
justify
aggression
blood-thirsty
the
thousands of
old
men.
for
Such
words
Koreans.
coming
of
ica.
the fate
the
amount
which
of
they
set
National Defense Army of the
up
basis, by what right, on what foundation of inter¬
national law are the ruling circles of the United States of America
Federal Financing in
resting on the Administration and
the Congress is to take vigorous
steps to reduce the nonmilitary
expenditures of the government
drastically, even though this would
involve
reduction, or possibly the
elimination, of some domestic ci¬
vilian
programs
which under
normal
circumstances
might be
review
of
both
ing
arms
aid.
recovery
to
policy of supply¬
Marshall Plan aid and
By and large, economic
has proceeded far enough
of
substantial
a
of
as
thereby
pruning of the non-military ex¬
penditures all along the line.
Granting that there be under¬
taken the kind of expenditure re¬
that
duction
for additional revenue
the
which
proposed,
remain
still
would
tnere
here
is
existing
a
Federal
system can produce.
This
a
of the
The
secured.
tax
memo¬
discussion
by which the neces¬
ways
additional
sary
need
beyond that
be
objective
revenue
primary
can
of the discussion is to indicate the
kind
of
kinds
or
best
will
that
tax
serve
adjustment
the
revenue
need and at the same time further
essential
other
of
requirements
the
into
icy, and not the protection or the
upon.
It is not improper, either,
ru der the circumstances now con¬
special interest of any group.
fronting us, to suggest that the
Ncpth Atlantic Pact nations would
that
well
do
to
readjust their own
budget programs with a view to
bui
ding
their
up
own
defense
po¬
tential. The general appropriation
bill
as
reported to the Senate,
car
iod
view
cons
$2,392 million for EC A. In
of
the
diversion
th's
of
present
deration
of
should
a
emergency,
be
given to
substantial portion
amount
to
the
arms
aid
industry
the outset
said at
be
should
It
has
no
desire
for
profits and no sympathy with
profiteering.
Businessmen
fully realize that war destroys
lives,
erodes
capital, consumes
wastefully
our
diminishing re¬
war
war
limited
of
serves
sources,
natural
expends
and
re¬
manpower
products
which do not con¬
the welfare of
the people.
It is believed that
business leaders are prepared to
on
tribute directly to
allotment to that program greatly
all ways with the
government to prevent war profi¬
in ex;ess of the
teering.
program,
rea'y
if there is to be
a
total
$1,223 million al-
approved for that
cooperate
purpose.
taking these steps, the urncy of which cannot be overmphasized, the prospective defi¬
reduced by several
lars.
The
ordered
year
billions of dol¬
President
the
could be
has
application
already
of
some
in
The
sue,
immediate and
specific is¬
with respect to the next step
legislation, is presented by
in tax
the
to
of July
25
chairman of the Congres¬
President's
the
sional
this
letter
fund-raising
committees.
letter he proposed three
restrictive measures, notably with
In
respect to consume^ credit, hous¬
loans, and various depart¬
adjustments in the bill (HR 8920)
already
passed
by
the House.
mental
These were:
ing
These
mented
and
steps
by
agency
should
an
curtailments.
be
all-out,
effective steps,
time, to assure
supple¬
rigorous
(1)
as
thrive
up
to make debt
discontent, on poverty,
on
The first point of
criticism of the President's fiscal
misery.
and
proposals is, therefore, that it is
not sufficiently firm on the funda¬
mental
necessity of eliminating
the deficit and paying in full for
the defense program as we go.
The
general
second
criticism
of
point
corollary to the above.
is
President's tax proposals do
The
not
even
up
measure
reductions
and
the
other
excise-tax
revenue-
year's
of current
services, in¬
use
and
goods
diversion of part of the
a
from
total
this
and as
al¬
is
gap
if this gap is al-
lowed to remain,
proposed income tax changes
the
begin to show substantial results,
it may be so wide that there will
be
possibility, then, of closing
no
to public use.
private
government's requirements
increase, as;happens in the event
preparation,
defense
enlarged
actual war, the share of the
in
available
total
civilian
for
moderate part of total
product as in peace, or it may be
a
substantial part as in defense
ing only
a
this part of the
product must be paid for. With a
balanced budget, the payment is
effected by taking income from
the people through taxation and,
building
to
war,
or
small
degree, thfough non¬
charges such as fees, fines,
a
tax
penalties, and other miscellaneous
receipts.
Under
this
situation,
taxing and spending have neither
inflationary
an
deflationary
nor a
reduction
a
substitute for
deficit con¬
that government
is in
means
ment without
corresponding re¬
private income. That
a
is,
taxation
is
not
productive
enough to cover all of the spend¬
are
likelihood
that
large
is
When the deficits
continuing, there
ing.
every
government will
through bank
finance the deficits
loans, which
of
material
a
portion of the total
defi¬
plus
product
cits
the creations
But government diversion
power.
of
means
additional purchasing
and
new
tively
more
purchasing
total,
than
there
from
withholding
agents.
personal incomes would
partly as of Jan. 15, and
partly as of March 15, 1951. The
pact
on
show up,
recommended
increases
in
the
tax rates would not
be reflected in increased collec¬
tions until 1951.
A similar delay
would occur with respect to the
great bulk of the
and
loophole plugs,
insurance
the
company
tax
increases.
of this tax program,
would be a steadily
mounting deficit and a serious
time lag before there could be
appreciable gains in receipts. The
adopted,
anxious
way
which
the
President
to avoid would be
is
under
before his tax measures could
The present Federal excise
(1)
system is highly selective and
tax
and
creation
the
was
of
new
through
power
the
(4) In order to support the gov¬
through
period
a
diversion
large
and
in
product
of
the
at
inflation, there must
diversion of income equiv¬
a
in
the
to
aggregate
the
diversion of product. This brings
to
us
the
effective
of untaxed goods
of ac¬
equiv¬
ways
private
pur¬
power.
The first way of achieving this
diversion to be considered, and
the
situation
fronting
is
through
excise
immediately
in
con¬
the most effective way
us
of
expansion
an
ineffective
civilian
uct to
cises
the
on
would
be
the price of the
by
Since
ar¬
than
individ¬
virtually all
uals have, at any
given time, only
of income, it
amount
follows that excise taxes limit the
of
be
done. The higher these taxes, the
more
stringent is the limitation.
And also highly advantageous in
the present circumstances is the
buying
fact that the
taxes
the
so
will
begin
the
that
revenue
Treasury
from
burden
we
as
productive of discontent
are
to
within
can
from
excise
toward
month or
flow
a
effective date
of the
Their
morale.
bad
into
go
retention
of
period
a
sub¬
stantially higher tax burdens and
greater civilian
consumption cur¬
tailment
and
can
be
should
avoided.
that
solution
The
is
the
of
recom¬
obvious de¬
here for the
mended
fects
excise
present'
tax
system is the repeal of all exist¬
those
excises except
beverages
ing
coholic
of
excise
the
uniform
at
final manufacture
al¬
on
tobacco,
general,
and
the substitution
and
a
point
of
all goods ex¬
on
cept foods and food products.
With
to
respect
excise
turer's
manufac¬
should be
a
it
tax,
noted, first, that it
is not
new
a
form of Federal taxation. The ex¬
which
taxes
the
President
recommends for retention include
than
less
that
20
taxed
are
total
In
price.
from these
million,
or
$1,771.5
was
goods
the basis of the
yield
nearly half of
of
classes
on
manufacturer's
the
1949
yield
the total
of
considera¬
the excises here under
tion.
in
Second, the tax would be levied
all cases at the final point of
manufacture. This point would
be
determined, for all taxable goods,
as
it now is under the present
manufactures'
that
cedure is
include
the
an
obtainable
Internal
excises.
The
if the
tax
buyer can
certificate,
exemption
from
that the buyer
pro¬
does not
the seller
the
Revenue
Bureau
on
of
showing
a
ordinarily
uses
the
materials
purchased in some fur¬
ther process of manufacture.
Third, it is not feasible general¬
that
provide
invoiced
tax
income
certain
the
and
deprivation
government use.
chaser's
a
for
burden of
which is
the necessary complement of the
of the enlarged diversion of prod¬
of
ly
ticle.
instrument
cost
defense
the
consumption
goods is to take more of the pur¬
required
and services not
an
as
distributing fairly the
effect of
direct
The
taxes.
excise
an
in¬
an
subject to excise tax. It is equally
furnish
diversion
chasing
luxury
non-luxury goods. As
there still remains a large volume
same
time to avoid
be
can¬
logical
any
flation control it is ineffective, for
taxes
bank loans.
its
on
line of distinction between
and
final
open
purchasing
be
The selection
use.
defended
be
not
available for
services
and
consumer
which
must
in¬
and
equitable. It applies to only a
minor
portion
of the total of
not
which
illogical
discriminatory,
manifestation of
price inflation, the basic source of
amount
The result
if
reasons:
This
of
remainder of the added im¬
tax
services, and the consequence in¬
evitably is an increase of prices.
is the
of dealing with the
problem,
for
these
way
excise
cise
alent
The
in
power,
goods
are
necessary
flow
rela¬
now
complishing the
an
as
factory
bank-financed
that there is
means
beverages and
alcoholic
on
tobacco. It is submitted that this
is
an
inadequate
and
unsatis¬
a
increase in
withholding rates, but it would be
at earliest, virtually the end of
the current calendar year before
there would be an increased in¬
first
up
those
and
is creating its own means of pay¬
and
from excise taxes other than
lion
discriminations of the present ex¬
If the budget
of
which includes some $4 bil¬
ume,
private income, and
of
is
private spending.
duction
present vol¬
about its
at
revenue
(2) The inequalities and evident
public spending is
dition, it
of preserving the
the effect
have
a
income
Government
effect.
alent
show
point in his immedite program,
the excise tax reductions of
H.R. 8920 be omitted. This would
goods
(3) Whether government is tak¬
calendar year
1951.
The cutback of the indi¬
vidual tax to the 1945 level would
the
in
time
is
use
correspondingly diminished.
ernment
some
The President recommended, as
a
When
The
reason
is that the recommended
changes in the income taxes can¬
not
produce additional revenue
in any substantial amount until
standards of paying as we go.
inflation
Eliminate
Government
(2)
to his own
corporation
The President's Proposals
Dy
cit for the current
If
government.
our
take
such a mountain of
repudiation
inevitable.
The resulting widespead
impoverishment of large
groups of our people would cre¬
ate the very condition
most fa¬
vorable to acceptance of socialism
or
communism,
both of which
pile
ily
be decided
funds
may
are
we
methods that will pre¬
the value of this basic sup¬
debt
public interest.
Our aim is
the development of sound tax pol¬
equivalent di¬
recovery
aid
arms
an
curtail¬
aid,
recovery
making possible
version
the
of
prompt
a
the
warrant
ment
such
step
that
port of our economy, we can eas¬
Crisis
randum is directed to
desirable.
related
gross
financing
serve
character should be
of
not
do
while there is still
jrom first page
second,
the
July,
values
the
stability
we
A
As of
public debt was $257.1
billion,
compared with $251.7 billion on
the corresponding date a year ago.
Among
Morning
that, since olden times, has been called 'The Country of
Repose'?"
we go.
engaging in war to defend is the
soundness of the dollar as a meas¬
ure
of our wealth, our income,
our
standard of living, and the
perpetrating all this criminal banditry against the peace-loving,
talented and hard-working Korean people—the people of a country
same
to accept
deficit as a
In the writer's
as
of
middle
the
so-called
the
watchdog,
this
Southern Korea puppet government?''
what
Continued
people."
our
budget
current
defense program
and
"On
effort to
view, it is a matter of high duty
bring the current budget into
balance and also to pay for the
investments in Korea, for the
of their capital
make guns and
out of next
now
volves
or
to
worried not about the fate of the Korean people, but
the future
protection
of
matter of course.
United States of
that the ruling classes of the
"Is it not clear
the
and
product,
expenditures
needed
different groups
continent of Asia.
airplanes
of
possible
greatest
of
the
food this year, nor
effort.
methods which pre¬
vent
profiteering and distribute
the tax burden fairly among the
generally known that American militarists are
as a strategic springboard directed against the
people
the
product. We cannot eat next year's
forces
inflationary
The President appears
also
are
growing deficit
a
by taxation
interested in Korea
America
revenues
must make every
the
monopolists.
about
lest
new
"We
business. They are interested in the subsoil and other
in cheap manpower in that
country under the favorable conditions of a puppet colonial regime
headed by Syngman Rhee, that tried and true servant of American
is
tax
increase
we
finance
of Korea; they are interested
Both
(1)
government must at all times de¬
rive their support from current
these enlarged
on
detrimental to our defense
terested in
"It
embark
create
are
are very
resources
getting
mine output.
promptly
little interested in, and very little affected by,
of the Korean people. As business persons, they are in¬
They
adjust¬
tax
the President said, in his
"We
representative
the
from
above
the
for
ments,
expenditures at a time when the
Federal budget is already out of
balance. This makes it imperative
utteily hypocritical and false. These are the
crocodile tears of the ruling classes of the United States of Amer¬
States
United
the
letter:
tragic fate of the
the
here about
talk
to
ade¬
not
are
if
above,
that
that
tried
taxes
considered as a way of
a substantial increase of
promptly. This matter is
noted
from the main theme.
tions
or
aggressors,
Austin
"Mr.
excise
spend¬
closed
receipts can be
the next few month:
it.
$600 per person.
In support of the recommenda¬
."
.
.
the
is that
It
program.
the
on
income-splitting
provisions of present law and the
present personal exemptions of
who are busy killing hundreds of
the peaceful people of Korea, women, children and
and
war-mongers
tax
serious
a
comment
important enough to warrant ex¬
position at some length, even if
it appears
to involve a diversion
unchanged
of the
flyers who are carrying out the orders
"It is American
proposed
to
me
and
quately
surtax;
legislation is the only way
and
ing
over
revenue
people."
United States of America against the Korean
of $25,-
exemption
brings
criticism
suitable ex¬
to enactment of
by which the gap between
Adequate
1945 by removing the
reductions from those levels made
in 1945 and 1948. This would leave
Government of the
the
of
retaining
but
adopted in
provoke an armed conflict in Korea between the governmental
camp of Southern Korea and the governmental camp of Northern
Korea, banking on an easy victory—that easy victory which had
been promised by the American generals who had been training
a
rate
Increase individual incometo the "tentative" levels
(3)
by Syngman Rhee, and in an attempt to transform all of Korea
into its colony, the Government of the United States decided to
Rhee's troops in Southern Korea for that purpose
long time. ..."
"These resolutions cannot cover up and cannot explain
tax
This
Program Not
tax rates
supplied by the Americans and
Syngman
25%,
to
proposed
000 from
that were imposed by the Government of
the first place, and that were adopted on
illegal and
were
United
21%
from
Tax
jl
corporation
Prompt attention by the Con¬
tax.
cise tax
Excess
corpo¬
increasing
by
structure
rate
rate
.
the basis of unilateral information
r
Thursday, August 17, 1950
.
.
gress
revised
the
Adjust
(2)
into that quagmire by the aggressor, the ruling circles
of the United States of America.
"Under the mantle or resolutions of the General Assembly
ing it.
tax provisions;
pany
pushed
the
the begin to be effective in prevent¬
retain
but
loophole-closing, dividend with¬
holding, and life insurance com¬
the
that
provisions,
losing
5
page
Observations
;
.
(646)
to
shown
as
a
the
tax
be
separate item and thus
through
subsequent
the
stages of the distribution process.
actual tax payment will be
The
made
of
by
sale,
and
sold
final
there
consumer
to
the
tax
at
the
will
time
be
as
the
goods
him.
an
raises
which
are
)
A Uniform
This
manufacturer
it
reimbursement from the
eventual
final
the
collected
has
who
Sales Tax
some
points
should
be
I
about
cleared
regard to these points,
however, it should be remembered
up.1;
With
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
.,
(647)
that
the
people have been living
with exactly this kind of tax for
many
and
years
under
that
it
beverages and
the
be
rate
petitive
board.
This
emergency,
that
more
that
be
than-
revenue
provided
One
mided.
the
be
be
said
be
that
auer
forward,
middleman
in
cost
a
and
the
that
distribu¬
tion chain will compute his mark¬
up
the tax
on
Hence,
by
part of his cost.
as
the
time
the
article
is sold at retail, it is alleged that
the
will pay much more
consumer
than
the
tax
by reason of the
percentage increases. Some of the
present
taxes
manufacturers'
at the rate of 25%. There
are
was
testimony
no
Ways
excise
and
Means
before
the
Committee
in
regard
to
the
excessive
prices
paid by the consumers of these
goods on account of a pyramid of
the
taxes
through
the
to
sumers.
So far
has
con¬
:
been
be
learned, there
serious complaint on
as
can
no
of
pyramiding
exaggerated.
If
it
has
been
to
were
occur
consistently." the practical result
would
be
several
be
that
profits
distribution
as
at
levels
the
would
greater than they would
be if
that
by
is
it
state
of
all
concerns
were
and
which
is
from
of
profit,
gained
performance
successful
for.
pay
In
the
because
for
that
service that others
a
to
tax
reason
return
a
the
such
no
is
willing
are
field
of
mer¬
chandise distribution, this service
consists essentially of supplying
to
the kinds and qual¬
consumers
ities
of
prices
that they
goods
they
want,
willing
are
to
at
pay.
The value of this service, from the
consumer's standpoint, is not en¬
hanced
by the fact that the vari¬
middlemen
ous
turn,
relays in
as
The
process.
competition
thousands
other
the
acting,
in
tax collection
a
dollar
consumer
the
are
in
of
the
all
merchants
distributors
effective
for
which
are
and
is
engaged
determinant
profit rewards which
of
of
the
of them
any
will get. The issue involved is not
whether
the
the
-
burden
one
of
tax
he
the tax, but rather
much more than the
will
because
pay
pyramiding.
that whatever the
and
over
is
It
the
the
evident
tax,
enhanced
The
of
consumers
above
constitute
profits.
bear
of
how
actual
will
consumer
pay,
well
as
taxes,
received
or
it
as
Regardless of
wnere
the
basis of economic logic, is
competition throughout the
distributive mechanism will tend
on
that
to
prevent
abnormal
any
sur¬
charge above the tax, because the
relaying of the taxes not a
mere
service which the
consumer
value
pay
enough
"The
point
to
that
would
original
made,
is
spent
by whom
or
payments
are
burden
jails
ulti¬
their
mately
the
income
of
people. This ultimate burden
can¬
not be
tax
escaped by aypiding excise
and
income. To
upon
levies
in
concentraifng7the
event
any
extent such
some
shnted
are
levies
ex¬
aggerated is that there will be
abnormal
the
of
up
expansion
original
an
blowing
or
tax
by
the
time it gets to the consumer. If it
really
were
tributor
true
profits
that
would
all
be
dis¬
mate¬
tax
be
ly
and
when
the
conversion
period,
large amounts will be
quired
from
finance
to
civilian to
the
re¬
transition
military produc¬
tion.
Third, it will drain off income
all
segments
thus
and
traint
ding
be
a
a
determined by present
which
is; (Z) a nigher standard rate;
(3) progressive rates on the larger
For
of
the
tions
tax
yield
goods
the
across
field
bid¬
con¬
than
Fourth, it will be
an
the
be.
can
the
objection
used
is
tax
term
by
for
in
a
of
relations, this criti¬
be
brought
against
can
taxes, but the argument is
always advanced n^^wpiciferously wnen the contestant iiSr opposing
tax.
a
If
he
happens.Mo like
tax, this point is soff^dalled.
"The
fact
looked
in
this
is
usually
aiginneiits
such
tax.
returns
same
of a
amount
of j tax
would be
large income. Bein£'a matter
arithmetical
income
income
of
th'shi'^ the
to
a
over¬
is that
by
omy,
prices
which
be
can
produce
of
taxable returns adjusted
gross in¬
totalled
exemptions
Here is
regressive
involved
some
pression
of
that
is
sort of
those
small
as
is
op¬
in¬
By this standard there is
comes.
far greater
a
in
degree of oppression
whole price system than
the
there
be
can
taxes
in
ordinarily only
which
billion, and
$63.8
billion.
were
are
vidual
spending.
Ex¬
only way of
is
the
part of the defense
this portion of
over
indi¬
sumption spending.
The
exemption of
food
products,
rent
is
and
service
a
foods
the
and
and
fact
that
hence
not
there should be
some
indication of
this oppression somewhere
There is
economy.
cation.1
On
nation
under
the
in the
such indi¬
no
other
hand,
the
prospered
regressive price system.
has
a
and
grown
A
moderate, uniform excise tax
would not impede or dampen that
prosperity
tional
much
as
as
"Another
that
some
point
briefly is
aware
true
to
,
the
the people
be
men¬
concern
of
will not be
of
paying excise tax. It is
that
complete
awareness
would require of the"
citizen an
encyclopedic knowledge of the
tax law and of the economic theo¬
ries of tax
in
shifting arid incidence.
few
very
whether
tax
on
are
or
a
carry such de¬
persons
their
heads,,, and
likely to be
not there'is.an
hence
aware
excise
given article, and if so,
''It can be said
what is rate of tax.
of
the
that
proposed
since
applicable
for
be
there
very
uniform
excise
is
across
only one rate,
theisoard, there
much
strong
full
a
panies
and
that
not
special
To
companies
be
less
excuse
people
generally ;mot having
service, the middleman knowledge of it tfian under the
should logically demand
groups
high tax rather than
1 At
points,
ment
by
and
this
point,
exerpts are
the
Senate
and
made
R.
Chairman
Sligh,
of its
low
one
certain
from
a
state¬
Jr.,
Committee
NAM director
Taxation
Committee."
present complicated System."
or
other
Finance
to
Charles
a
a
Plan's Advantages
The
plan
offers- the
advantages in
peace as
following
in
war:
First, it will put all consumers
on an equality in
theiy ,buying and
the
financing
degree
the
of
would be necessary,
crease
be
fully
the
bank
and
method,
less,
that
it
The
re¬
is
there
for
of
American
that
important in
total
income
it follows
at
that
progressively deep cut
margin as sales
a
profit
increases.
directly
This
would
at
heavy
companies.
Let
recognize that
us
the country needs a large number
system.
production
war
of
enough,
the
distortion
of
the
competitive situation would com¬
pel dismantlement of the large
of
small businesses,
forget that it also
large businesses, nor
that small and large busintfssmeed
Preservation of these incentives is
as
the
rates,
when the tax rates become
this
characterize
enterprise
industry,
amount
management's
effort to expand sales volume, and
still
costs
the
is
strike
preserve,
diminished degree, the
to
effort and
to
the
if in
to
the
volume
Neverthe¬
incentives
even
applied
progressive
loans
a
reason
would
given
a
aggregate
profit becomes dependent mainly
sales volume.
When the tax
it is second in the order of
preference.
is
above.
busi¬
competi¬
upon
higher
standard rate, would involve the
noted
within
the
into
second
American
normally
conditions, profit margins in
formity
as
would be.
The
the
relation to sales tend toward uni¬
inflation¬
as
government
of
Under
tive
in¬
tax
also,
respect,
structuie
ness.
seriously
such
another
progressive rates is unsound, and
it could be actually destructive of
taxable
prosperous
but
let
needs
as
not
us
some
in peace production. The ultimate
cost
of
defense
or
war
to
the
each other.
people depend
tion incomes
income groups.
The
Income
Tax
The third
Rate
The second phase in the devel¬
opment of
tax
to
the budget,
defense spending,
program
including
on
effective and sound
an
a
the
put
basis, is
pay-as-you-go
adjustment of the
tax.
come
a re¬
individual
in¬
The
procedure to this
end which the President has rec¬
ommended
is
good,
and
for
the
immediate purpose it may be ade¬
the
once
change
begins
effect
to
of
the
addi¬
produce
receipts.
The increase, first of the excises
and second, of the individual in¬
come tax, would promote the re¬
striction
civilian
consumption
necessary
aspect of the
of
which is
a
sacrifice that civilians must make
in
support
the
of
defense—or—
effort. The President has said
war
on
it.
according tonfchejfsize
progressive rates
de¬
stroy the business structu^, Yprich
tion of corporation income as pro¬
gressive
rates,
must
opposed
from
every
The
House
is
be
steadily
standpoint.
Bill,
second bracket rate of
a
"In
they do not
rate
proposes
that
first
the
bracket
with
of 45%.
which
a
be
rate
set
binding
at
makes
to
not
do
time appears to
These restrictions
any
to
appear
be
necessary
and a prompt, effective
plication ol the tax measures
now,
herein
ommended
lessen
the
control
need
far
is
required if
in
will
for
more
we
go
far
them.
are
likely
to be
fail to be diligent
crease
the
the
would
an
yield from the
poration income tax.
last
be
in¬
cor¬
This is put
because
industry will have
large
additional
financing
re¬
quirements in converting to a de¬
fense
or
war
production
basis,
and it is far better than
industry's
on
assumption that such rates
was
disposal.
with
a
a
Some
large
have
and
persons
have
individual
concluded
indicates
greater
if
size
to
ability
of the
case
income,
that
pay
individual,
corporation
existed
solely for its
poses
tain
and
own
were
free and
and
operated
corporate pur¬
entirely free to
re¬
dispose of its entire
income in support or
of these purposes.
furtherance
The concept of
purpose
association
of
collectively,
own
to
be
used
for
thi*
than to have them drawn
through heavy taxation and
returned
again
as
government
individuals
who,
the capital stock
loans.
and whose investments have made
There
ting
are
different ways of get¬
more revenue
through the
cor¬
poration income tax, if and when
the
corporate
3 See
Note
1
activity
above.
possible.
rate
would
never
Tax
be
Dividends.
on
The President recommended
re¬
the
of
provisions of HR
8920 relating to a withholding tax
on corporation dividends.
This is
,
cumbersome
a
and
innovation
unnecessary
which
should
stricken from the bill3.
nificant
bill
if the
16th Amendment
10%."
as
tention
ity in the
"This would be true only
re¬
were
Cumbersome
that
of
pages
of the corporation.
that
assurances
Withholding
it must also indicate greater abil¬
case
still
us can
under consideration to the ef¬
high
as
con¬
large corporation income
the
approval of
an
of
some
fect that the
the
exem¬
dividuals and the income at their
fused
as
given when the
is of¬
legal personality does not extend
this far.
Every corporation is an
funds
own
it further,
would then be
carry
cited
policy,
member
justification of the
a
rate progression
taxes in the
in developing ad¬
revenue
in
con¬
available.
The third step
ditional
to
Price
utilizing the obvious tax
trols that
ap¬
rec¬
and
and
plify and apply taxation accord¬
ing to ability to pay.2 And when
the term "ability to pay" is thus
used, it invariably refers to in¬
at
extend
used
prevent this from
tax
en¬
is here being
principle, and if
Congress should decide
future
a
being
the first stage of all-out, full pro¬
gression.
of
the
nor
business
does
fered, it is always based
them.
any
on
that
fact
a
Congress
are
future Congress.
acceptance
"Wherever
apply the
this
this
use
of
asked to accept a
between
that he is prepared to recommend
price control and rationing if the
require
is
it
normal tax and surtax net income
not
to
assurances
of
American
The technical distinction
law
intend
taxation,
actments
second combined rate
the
assurances
progressiv tax principle to corpo¬
the
25%
prosperity^ and
the
of
neither the
follows
procedure but
same
our
the members of this Congress that
$25,-
above
000.
President
spite
41%,
applicable to income
The
the basis of
national strength.
HR 8920, intro¬
duces the progressive principle of
corporate income taxation by set¬
ting a first bracket rate of 21%
and
Taxation of torpora-
at
method, namely taxa¬
off
collection
"In
year's income, but
many small com¬
would
law, and indeed, in vio¬
taxation of corporation income at
be
embarrassed.
tax
f
be
the
full
most in¬
a
lations of the clear intent of these
other provisions.
in¬
of
result in
diuons of otner sections of the in¬
on
situation
would addi¬
heavy income taxes.
tioned
be
to
would
part
the
would
equitable taxation of these widely
varying personal incomes, with no
regard whatever to the basic con-
subject to the proposed tax, will
severe an impact upon
tional
its minor applications,
in
levy of progressive
large corporations in¬
lowest
prevent too
its
or
corporations
The
comes
vol¬
control
incomes, and of imposing
it some restraint in con¬
upon
large
on
come
elapse,
to
for
would
conflicts
quate,
a
on
for
a
the
taxes
could
in many cases, no
doubt,
make provision for the additional
as
consumption
the
to
Large,
year.
is
increase
still
year
retroactive
ary
small proportion
of the price. And, if this line of
argument were valid, either as to
major
tax
would
taxation
ex¬
present
income
the
proportionate
sult
cise
an
become
from corporations.
amounting to $63.8 billion
in 1947 and fully as much or more
today, that is not touched at all
by the income tax.
All of it is
available, and is no doubt used,
come,
di¬
there
unique
with
$149.7
immense volume of in¬
an
the
By whatever method the tax
tax
billion,
and
exemptions
$44.3 billion. Including non¬
come
for
should
tax
At
tax would produce the $1.5 billion
that the President suggests be ob¬
there
The
criticism
against the excise taxes
being
was
of
one
comes
stand¬
of corporate profits and tax,
increase of 15% of the current
an
to
as
result.
the
of
system
modified
so
different
a
implication
rected
the
gross
returns
any
that tax.
the
pressures
profits
irresistible.
were
burden
system of market prices.
There is
no practical way, in a free econ¬
adjusted
which
sons
level that would in¬
a
various
cess
$135.3
ticle
a
According to the
1947,
distributing
itself
law, there is
taxable
the purchase price of a
is
tax
a
large volume of indi¬
income that is not subject
it
amount
proportion
income
always
vidual
of
academicians,
given
a
larger
a
small
me
that
means'
tax
a
'regressiv^j&As this
would be
is
that'^spcli
income
present
the
lax
the
ard rate to
tained
of
of
of
volve difficulties of adjustment in
the event that at some future time
of
elevation
an
effective
terms
of
amount
have, at one extreme, in¬
so small as to be
exempted
entirely under the personal in¬
come
tax, and at the other ex¬
treme, incomes so large as to be
subjected to the maximum rate of
avoid
creased,
the
The
for
this
country have many thou¬
sands of stockholders. These
per¬
And it would
corporation
Under
income
earned,
as
such, shows
whatever regarding the
amount
small
on
corporate incomes.
straint.
lower living standards.
"Another point i§ likely to be
is
organization
earn
them should pay as an individual.
corpora¬
for moderation of the tax
to
stockholders.
All
disturbing the ex¬
relationships
established
point where the consumers will
be forced to foot the,ibill in
higher
or
from
business
nothing
ability of the several stockholders
to
pay
taxes, or regarding the
without
isting
necessary complement to the
income
tax as
an
inflation re¬
prices
ex¬
increase
an
of
exists
income
ume
present excise, system
a
effect
form
its
the present,
the first of
options is the preferable
It would
one.
27
Fundamentally, the corporation
percentage addition to
corporate incomes; and (4) an
cess profits tax.
re-
competitive
of prices
up
population
effective
more
the
on
the
of
final
of
as
during the partial mobiliza¬
so
tion
sumer
result
rates
required. These
a
as
rate
these
need
necessary, a
is always
of
that
(1)
the tax
and
would
rially enhanced because of this tax
otherwise
are:
hamper the formation of capital to
tails
been
income
resort to it may be
the
prime importance, but particular¬
income taxes will be to
excessive
high
as
j^omptly, and
the
and
Third, it will obviate the
the
on
Very few
for.
has
be avail¬
people must endure.
would
tax
would
here,
an
such
which
deprivations
consideration
taxes. All
income, either
of
the
as
against such
out
in
be
must
consumers is not a valid
the
middleman
position taken
on
for
able for
for
given ar¬
larger proportion
inclusion of the tax would create
of a small than of a
large income.
a
larger cost base lor computing In
other
words, the 1 complaint
markups. And it would follow,also,
which is lodged against the
tax,
that the higher the rate of
tax,
usually a small part, of the total
the greater the middleman profits
price, could, with even greater
would be This view disregards the
force, be lodged against the whole
source
there
producers
competing
consumer dollars as
may
producers,
this>
excise
come
this score with respect to the 20 cism
classes of goods now taxed at the
many
final manufacturing
level.1 The,
extent
fact
argument
taxes
as
pyra¬
is paid, it becomes
carried
each
will
tax
will
It
tax
to
ex¬
point likely to be brought
is that the
u.p
tar
so
otner
borne
the
by the present
cises to be repealed.
.
all
such
during
in
cost,
in ,;a
oi
gooas,
an
all consumers,
-v*
"The
the
across
produce,
balance,
and
should
rate
would
as
situation
classes
and
tobacco,
all
put
consumption spending.
the board is tftat it
does ^Second, it will end the obvious
discourage sales unduly, and discriminations in the
distribution
it tends to keep the
general com¬ of the defense of war
alcoholic
uniform
low-tax rate
a
will
equality
not
limited list of taxable goods. All
is proposed here is that the
foods,
advantage of
tneir profits.
it
across
that
except
Actually, they know
tax would7 diminish
high
a
The
list be extended to include
every¬
thing
all.
both their sales and
they
have
been contributing
a
large
amount
of revenue through the
levy of a wide range of races on
a
at
none
of
to
the
cover
ail
aspects of this innovation.
objection
our
that
the
dozen
a
print
House
required
are
than
more
the
be
"It is sig¬
To put
briefly, we believe
sought by this
complicated ad¬
purpose
cumbersome
and
dition could be achieved far
more
much less bur¬
den on all concerned by requir¬
ing corporations to file an infor¬
simply and
mation
above
To
with
return
some
on
all
dividends
small amount, say $1.
accomplish
this,
only
a
very
simple change would be involved
in
the
2 See
regulations
Nole
1
applicable
to
above.
Continued
on vaae
28
28
Continued from page
draft
27
apply
quired
by
the
Commissioners,
report the names and addresses of stockholders, the num-
*
sales
The regulations limit
dividend pay¬
ments of S100 or more to one per¬
son during the calendar year.
civilian
goods
strained
to
levels at
will not
be
great opportunity for
paid.
this requirement to
sense
and
the Bureau
the $100 limi¬
report states that
intends to
remove
1951
in
will
sult
that the
be
porations will be subjected to the
additional clerical cost of making
a
complete report of all
dividends
the amount, and
also the additional clerical cost of
computing and withholding the
"10%,' and
of notifying
stock¬
whatever
paid,
and the amount
withholding. In view of
holders of the fact
of.
such
obligation of the record owners
is
to
of
dividend
full
of
knowledge
porting by payor corporations
re¬
will profits
general knowledge of the limit¬
ation on such reporting may have
"Under
ing
up
turns
not have
to
assume
thousands of additional re¬
many
with the reported change
regulations, will involve a
double burden on the Treasury as
the
well
the payor corporations.
as on
the Treasury would have
to match up all information re¬
turns and make the additional re¬
That is,
funds, just as the payor corpora¬
tions would have to file complete
information returns and withhold
the
tax
all dividends.
on
injustice to small
income recipients having only a
nominal amount of dividends. The
considerable
a
law
that persons
of $5,000 or
provides
gross income
now
with
less, of which not to exceed $100
is from sources other than wages,
elect to
may
contains
which
the
is
come
will be
claim,
determined.^ If
is
tax
source
of incidental in¬
dividends,
these
persons
obligated to file a refund
or else to itemize the in¬
cidental
certain
of
table
tax
a
the other
the tax under
This Supplement
according to
pay
T.
Supplement
in
income
of
the
whole
The
tax.
order
proper
Supplement T
was
to
be
adjustment
purpose
of
to simplify the
collection of income
tax from the
wage incomes up to $5,000 by re¬
lieving the recipients of such in¬
from
comes
The
return.
introduce
burden
executing
of
noyance
the
new
an
and
an¬
detailed
will
a
procedure
com¬
unnecessary
plication for these taxpayers. And,
of
course,
in
the
case
of
all
tax
withholding on dividends, there
will be a verying period of delay
before the refund is paid, during
which time the person entitled to
the dividend will be deprived of
the
he should
ceived promptly."
have
money
Excess
An
excess
re¬
Profits Taxes
or
to
fore
duce
a
a
should
be
increase
higher standard rate, be¬
to
the percentage
decision
it.
When
is made to intro¬
there
has
been
a
have
prompt,
developed
been
of
review
recurrent
anticipated
in
^
preventing serious
industrial
cases could not be simply
promptly
administered.
Thousands of appeals were carried
to
over
postwar appeals board.
a
It is likewise impossible to
(2)
law
the
reasons
must
abide by one or two
and
arbitrary
of
tests
the
whereas
excess
real
the myriad
conditions of different
enterprises.
Here
is
probably the root of the immense
volume of protest and litigation
which an excess profits tax al¬
engenders.
ways
from
The
objective of both
government and industry in de¬
fense or war production is to save
manpower and materials. In a war
both are extremely scarce and of
vital importance. The great prob¬
lem is how
to get the
needed
production
and
still
conserve
primary
The
best
is
solution
that
offered
above, namely, prudent,
intelligent procurement. Despite
the gravity
of the situation in
Korea
there
and
is
throughout the world,
occasion
no
for
not
ad¬
to compensate for
deficiencies
the
and
have
procurement
negotiation
and
of
errors
been
(2)
(1)
re¬
excess
an
profits tax.
Neither
wholly
either
is
realized
has
of
these
procedures
satisfactory.
admission,
an
been
prudently
is
to
whether
not, that procurement
or
not
Resort
competently
done.
At
the
time, however, there is
a
and
present
renego¬
tiation law and it should be relied
to
on
protect the interests of the
government and the people in so
far
the direct procurement pro¬
cedures may fail of this purpose.
Chemical Industry
ished
chemical
explosives,
products
such
as
paint and
varnish, pharmaceuticals, plastics,
rayon
These
etc.
I
yarn,
later
that
suggest
general, renegotiation can ac¬
complish much the same results as
an
profits tax, and is to be
excess
preferred to that tax, if anything
the
of
Of
sort
both
profits
that
deemed
taxation
they
as
be
said
premium
is
to
Both
cost.
excess
manpower
There
thing
must
a
of
either,
a
it
put
use
materials.
under
necessary.
renegotiation and
wasteful
ing,
is
on
and
incentive,
no
be
dustry
and
of
showing
chemical
the
panies
in
various
by
a
in¬
lines
product
which also shows which
important
have
these
lines
of
com¬
positions
products.
You
will note that the classification
broken
into
down
is
main
two
basic industrial chem¬
icals and
(2) finished chemical
products.
The second classifica¬
tion, in general, represents fur¬
ther
processing from the basic
(1)
groups
raw
material stage.
From
amount
the
to
notoriously
wasteful
pro¬
cedure.
there
standpoint,
two major divisions
are
(2)
inorganic and
organic.
(1)
Inor¬
ganic
air
metals,
chemicals
in
sumed
most
part
and
materials
raw
which
those
the
for
are
These
water.
and
industrial
made
are
and
con¬
large tonnage are gen¬
erally called heavy chemicals. In
this
category are included sul¬
organic chemical industry worthy
of the name in this country. When
to
went
we
in
war
1917, German
patents were taken over and we
into the manufacture of
organics to make up for the loss
are
other
objections
strong
to
an
and
(1)
dicated
Our
that
it
is
the
of
bone
of
tonnage
the
stand¬
however,
something
for
amount
the
From
value,
of
point
make
and
industry
75%
about
has
impossible
in¬
to
processes
whole field of chem¬
to the
not
have
development
limits
The value of organic
has increased
about $200 million in 1920 to
they
than
less
phase
re¬
the
$2 billion at present.
There
literally millions of organic
theoretically
possible
are
chemicals
development
commercial
and
past
It is
rate.
of its glamour and
much
the subject of organics
on
there is
other detail I should
one
important
of organic chemicals are de¬
to
group
rived
becoming
addition
The
explain.
One
coal
from
and
tar
other
off when coke is
made from coal. These compounds
products
given
generally call aromatic or coal
tar chemicals. Another group of
we
pulp and paper, petroleum refin¬
to other
branches of the chemical industry.
Consumption of the established
inorganics generally follows the
course of general
business activ¬
ity. In general, the processes for
inorganic chemicals are well es¬
glass
ing,
well
as
as
Most of the diversified chemical
in
in
sumer,
the extent of this upward
varying
integration
in
wide de¬
plastics used in raincoats, shower
curtains, etc. General Electric is
of
the
types
States.
Even
that
I
chemical
mentioned
Some companies sell sub¬
stantial
quantities
of
heavy
chemicals but this phase of their
business
as
a
rule is relatively
less
profitable
their
than
other
carbon
termed organic chem¬
The only important organic
chemicals
and
dyes
before
these
and
1914
were
medicinal
coal
were
made
tirely in Germany.
products
almost
There
en¬
chemical
c
»v
was no
f:
research
the
and
companies it, but this does not
necessarily detract from them.
Characteristics
Investment
What
investment
the
are
char¬
acteristics of the industry? In dis¬
cussing the nature of the industry
have already
we
touched
Chemical
(1) The
on some
indicated.
—others will be
Is
Industry
Business Cycles
Less Affected by
and Seasonal Changes Than Other
Growth
Major Industries:
of
technological
as a re¬
progress
stemming from research is one of
the most important factors. Sales
Chemical
of
product might complete¬
new
a
term
trends,
Dye
other
industries.
(although
tivity
to
our
all
to longcustomarily
experiences year-round produc¬
tion, any minor seasonal change
being smoothed over by storage of
product. Violent cyclical change is
minimized by diversity of produc¬
tion and variety of customers in
the
into
we
have
categories
principal
as
described them:
HEAVY
CHEMICAL
COMPANIES
Chemical
and
Chemical
industry,
tend
changing)
to
GENERAL
CHEMICAL
Dow Chemical
Monsanto
balance
Primarily
fact,
Enter:
to
this
Fertilizers
ac¬
each other.
As
a
as we
Virginia-Carolina Chemical
point, but
entrance
also
is
one
into
which
)
i
•
■ ■
of
the
true
know-how.
Gas
to quote
on
I will
not
bother
This factor
that it
important in
tition
Gases
Reduction
National Cylinder
go
here.
the
ical
Industrial
could
is
Agricultural Chem.
Primarily
I
substantiating figures to prove
to take the time
International Minerals & Chem¬
Air
in
industries
(2) The Industry Is One Which
Requires High Capital Investment
Cyanamid
Hercules Powder
American
Changes
ence.
Pont
Union Carbide
American
it
have already
discussed, many previously "nonchemical" companies have entered
the field during the past decade
to
obtain
this
stabilizing influ¬
COMPANIES
Du
responds
but
consuming
in
matter of
*
k.
big
companies
longer have a monopoly
The chemical
philosophy of expansion that ac¬
try to classify some repre¬
sentative
chemical
companies
chemical products which
are
be
should
field
proper no
on
you
predominantly compounds of
spe¬
competition for
companies,
increased
the
enough.
SPECIALTY COMPANIES
Those
Com¬
and
Armour
rapidly growing
a
existing chemical
but
activities.
are
has
pany
us
com¬
substantial part of their own
a
the
let
before,
output.
of
United
producers
in
ly offset declining sales of estab¬
lished lines. The industry, as does
Most
general
panies,
use
other
largest
materials
second
broad topic of "The Investment
Characteristics of the Industry,"
turning
Mathieson
to
the
plastic
Companies
Before
Allied
manufacturing.
of
one
sult
gree.
profit margins
relative
plastics. Goodrich is one of the
production of vinyl
leaders in the
moving closer to the ultimate con¬
well-known, prices
low
com¬
the
and
also
glass
expanding their activities
the chemcial field, particularly
panies
spells
and
of chemical
companies, we
and
ural gas.
low,
are
rubber
type found in petroleum and nat¬
tablished
are
the oil
to
cialized chemical business. All this
are
key raw materials for industry,
generally. They are important in
iron
and
steel
manufacture, in
factor
organic chemicals are termed ali¬
phatic compounds and they are the
Representative
chemicals
inorganic
is
California,
major
a
the
have
While
like
of
Oil
true of Standard Oil of Indiana. In
the
in
so
Standard
of
for the strides
25 years and
high
a
the industry that has
responsible
that has
try
Com¬
Shell Oil,
is making a wide variety of syn¬
thetic organic chemicals. Oronite
Chemical Company, a subsidiary
of
given the chemical indus¬
at
this phase of
made
Chemical
Shell
subsidiary
a
in the
detergent field. Various subsidi¬
aries of New Jersey Standard are
becoming important factors in the
chemical industry and the same is
continuing
been
is
of
outside
their normal business in fuels and
pany,
products
production
activities
expanding
lubrication.
from
par¬
own
The petroleum com¬
chemical
of
chemical
over
their
of
(i. e. organics), are particularly
progressive in the field of chemi¬
cal development and are rapidly
50%.
tar
experience
because
employ
which
and
which
have been contributing more and
excess
profits tax:
this
say
industries
of imports.
nitric
and
hydrochloric companies are engaged in both
acids; soda ash and caustic soda
organic and inorganic branches of
which are generally called aklalies.
Ammonia,
now
made
in the industry in varying degrees
greatest quantities synthetically and only a few restrict their ac¬
by combining atmospheric nitro¬ tivities to basic industrial chemi¬
gen with hydrogen from natural
cals.
See the chart for a delinea¬
gas or coal, is a large tonnage in¬
tion of the fields which are impor¬
organic chemical. Chlorine is an¬
other.
Up until the first World tant to various companies.
Most
War, commercial chemistry was of these companies, as mentioned
inorganic chemistry, particularly
earlier, are in one way or another
in this country, and in
a sense
their
products
and
these materials are still the back¬ upgrading
icals.
There
valid
I
country.
chemical
panies which control the raw ma¬
terials
for
the
fastest
growing
growth.
chemical
a
concerned
cost plus contract¬
the
other
ticular field.
Securities
plunged
the
to
turn
you
chart
accompanying
breakdown
should
products
chemical also.
be considered
as
In
of
hundreds
of
companies
ranging in size from a small local
outfit operating in one room to
some of the largest companies in
up
narrow
manufactured.
The two methods that have been
used in the past
leading
is made
to
stricted their activities within
up
hering to sound buying policies.
companies,
ical
4
page
these
the industry
addition
In
more
Continued
& Haas
Rohm
when
profit is reasonable, or in excess
of reasonable, are as varied as
'
v
Heyden Chemical
entirely
profits,
of
tests
Newport Industries
'
U. S. Industrial Chemicals
•
select
a
V
*
Commercial Solvents
excess
an
normal
and
Victor Chemical
determining just what is
profit. For administra¬
tests for
furic,
errors.
about
profits tax should be
consideration
serious'
and
experience
costs, no great difficulty need be
same
only the last desperate resort, and
given
that
them.
"Moreover, there is a possibility
of
con¬
new
costs. There will be new
items this
time, of course, but
with the standard contract provi¬
for
provisions of the bill, to¬
gether
of
the
in
available both cost
production
sions
funds.
"The
again
proper
handling
the substantial burden of
of
chemicals
are
relatively
data that should guide manage¬ simple susbtances based essential¬
ment
and
procurement
officers ly on mineral raw materials such
alike to a better determination of as
salt, limestone, sulfur, sand
and
the full information re¬
against taxpayer returns,
would
it
but
dif¬
large degree
m
tracts. There is
larger job of match¬
a
is
today.
covered
intentional
plan, the Treasury
our
inevitable.
Within
the
past
decade a large part of the ground
has been traversed that must be
as
would have
items called
different
case
ferent
income, just
encouraged careless or
omission heretofore.
for the thousands
no
were
ine
advertent
amounts of dividend
and
experience with the
scheduling of these items in mass
production. Under such circum¬
stances,
large errors and large
far to prevent deliberate or in¬
omission of small
go
of intentions,
profits tax is produc¬
wars,
be
and
new
for, and
general
that
belief
our
should
costs
to the actual owners.
"It
first
the
management
and
procurement officers
alike
had no proper knowledge of what
information
transmit the requisite
both
world
second
the
in
here
encountered
is
tion
cases.
Miscellaneous
law because of
the absence of adequate and sound
tax
of
In
facturers.
amounts of stock
large
all
to
Thursday, August 17, 1950
» . .
sound ex¬
economically
an
profits
cess
tive
reflect abnormal profits to manu¬
held
by owners of record instead of the
actual owners, a further complica¬
the
and
draft
prolonged and expensive
litigation, in many cases lasting
for years after the end of the war
during which the tsix was im¬
posed. The sections of the last ex¬
cess
profits tax law designed to
relieve
hardship and other ab¬
the prices
civilian business.
principal area remaining for
emergence of excess, or ex¬
profits
will be that of the
military and other defense, or
war, contracts. The main
source
of such profits in this area is de¬
fective procurement policies and
procedures. Whether because of
haste, impatience with details, or
ignorance of
ultimately correct
costs, war or defense contracts
may
provide for payments that
cor¬
payor
accepted
in
all
cessive profits,
The re¬
income.
1950
on
The
the
filed
tation, applicable for returns
the
as concerns
far
so
botn be re¬
which there
will
"profiteering"
Commit¬
Ways and Means
"The
tee
'
of
prices
the
and
civilian
dends
*
proper
and the divi-
of shares held,
her
*
a
law
tax
fairly under
the best
excess
tive
expansion of the
individual income tax, in relation
to
the
government's
need
for
goods and services, the volume of
and
when re¬
shall
-
and
sufficient development of excises,
This section pro¬
148 (a).
vides that corporations,
with
Even
Crisis
Federal Financing in
profits
excess
an
will
that
circumstances
Section
The Commercial and Financial Chronicle
t'''
(648)
precludes
marginal compe¬
field.
It
industry
is
chemical
that
the
requires technological
This is not easily ob-
Volume 172
tained
by
Number 4934 iJS&rtie Commercial and Financial Chronicle
into
entrants
the
(649)
true because relatively small por-
general
tions of earnings are paid in divi-
new
field.
praisal of the industry's earnings
of
causes
the
lower
ap-
dends and, because, as previously might be summarized as follows:
mentioned, the stocks ordinarily
(j) postwar need for funds for
is a result of many factors among
sel1 at high-price-earnings ratios, expansion necessitated financing
which are (1) the heavy capital
Some companies have paid as lit- by means of debt or preferred
investment necessary to enter the tie as 2^% of earnings in divi- stock.
Such financing put prior
business;
(2)
low labor factor; dends.
claims on assets and income ahead
The Industry Has a Relatively Stable Price Structure: This
etc.
rHavl.n2 disposed of the nature
°f the industry and its investment
to the value of the
characteristics, let
The
liie
of
industry
inuusuy
product.
has
i as
lower
luwu
a
a
ratio
iauu
salaries relative
and
wages
to
sales than
industry as a whole. In
chemical
operations
the
many
turn to the
us
various factors affecting the worth
b
.
.
ot
,
...
cnemicai
0f
common
companies.
,
.
it
securities,
is
,2)
.
,
.
many
pmwina
irp
£
large
+
that
so
.
of
h
growing
percentage
•
,
tation
of
using
the
financial
statements
'
.
and ratios is not enough. You
ess.
He operates through valves, must have some knowledge of the
automatic
controls
and
instru- chemical industry and of the comments.
As a result the impact of panies in the industry to come to
rising labor costs does not hit the the right conclusions.. This does
chemical
companies as hard as not mean, however, that you have
many other concerns.
This con- to be a chemist.
Pe^e with other investment media
so that the level
the general
market nas a bearing on the de¬
tributes to price stability.
For argument's sake, let us asthat 15 times is a reasonable
multiplier. Then if you know that
the ABC chemical company is
going to earn $5 pef share, the
stock
should
theoretically
be
worth $75 per share. However, the
matter is not this easy. As you
can appreciate when the multiplier is applied to individual cornpanies the analyst must take into
account a number of other factors,
If this were not true all chemical
companies earning $5 per share
would sell for $75! This is ridiculous when you consider that one
Droduct
during the entire production
Steady
for
financial
usual
proc-
.
„
.
learnings ractor
material costs make
raw
both
prices.
the
short
Readily
and
avail-
long
term,
Many products with which chemical products compete are greatly
influenced by
terial costs.
cotton,
vs.
fluctuating raw mavs. silk, rayon
(Nylon
synthetic
alcohol vs.
synthetic
natural rubber, plastics
fermentation
rubber
vs.
alcohol,
wood, etc.)
vs.
Many
ship
chemicals
relative to
This is true
are
costly
unit
their
to
value.
especially of the basic
™ar}d for chemical stocks.
Evi-
chemical stocks.
ple
formula
There is
and
from
come
patient
field
work.
Plant location
must
analysis
Even
and
the
cast of an individual company's
future earning power the analyst
must have a knowledge of (1) the
company's sales breakdown by
products and industries served;
(2) the economic characteristics of
the industries served; (3) the economic
characteristics
of
each
major product sold; (4) contem-
LOS
B.
Financial
With Investors Diversified
(Special
to The
joined
is
with
now
Investors
Diversified Services, Inc.
He
was
Lynch,
the
Exchange
Exchanges.
He was
previously with Marache Sims &
Dean Witter Adds
(Special
other
SAN
McClure
Joins
(Special
Financial
Witter
Dean
of
the New
Shields
Chronicle)
Financial
ard R. Rose has been added to the
staff
G. Brashears & Co.
to The
FRANCISCO, Cal.—Leon¬
& Co., 45
members of
Street,
Montgomery
York and San Francisco
Chronicle)
LOS
to The
Stock Exchanges.
Two With
Cal.—Samuel
ANGELES,
H. McClure has become associated
with
Shields
&
Co.,
510
West
Sixth Street.
For many years he
with Dean Witter & Co.
was
(Special
Hodgdon
(Special to The Financial
Chronicle)
BOSTON,
Mass. — John
R.
Hutchison, Jr., and William R.
Tothill are with Hodgdon & Co.,
10
With
State Street.
Whiting, Weeks
to The
BOSTON,
Financial
Mass.
May & Gannon Adds
Chronicle)
Joseph
—
(Special
W.
Valentine is with Whiting, Weeks
&
Chronicle)
Financial
FRANCISCO, Cal.—David
Rowland
of the New York Stock
Co. and
affiliated
G. Brashears & Co.
and
Shearson, Hammill & Co.,
South Spring Street, members
and
Cal.—Harry R.
become
Walston, Hoffman & Good¬
win, 550 South Spring Street. He
was formerly with Morgan & Co.
Chronicle)
has
■
with
staff of
earnings.
has
'■
Chronicle)
formerly
with
Merrill
Cal.—Robert Pierce, Fenner & Beane.
ANGELES,
Cunningham
618
Plated future expansion—products company might be paying a $4
and dollar amount to be spent; dividend and the other nothing.
past data legal ding sales and
Some of these other factors
to The
Financial
LOS ANGELES,
Portman
applecart!
Cunningham With Siearson
(Special
to The
un¬
foreseen developments such as the
Korean situation
come
along to
upset the
(Special
ap¬
sim¬
no
rewards
Stubbs,
State Street,
53
mem¬
bers of the New York and Boston
P1*0^ maigins.- Future sales and which affect the price-earnings Stock Exchanges.
consuming industries is thus earnings can then be projected on ratio, or multiplier, are as follows:
important and companies cannot tnc' basis °* certain assumptions
,
Comnanv's
Businessrnmnpfp nutciHe nf pertain limits
as to general ousmess activity and
ine tompanys Business. Continued from
* TT f J A Tk a* to activity of various industries Some, chemical companies are en(4) The Industry Spends Sub-
chemicals.
readily
can
preciate how important both earn ¬
ings and the multiplier are in de¬
termining the relative worth of
dently there has been some lack
of confidence in the high postwar
sume
Perhaps the
most
important
able cheap raw materials such as factor
in evaluating the market
natural
gas,
salt, oil, limestone, prices of companies in the induscoal, air, and water, have very try has been earnings per share,
small, if any, price changes over To arrive at any intelligent forestable
you
SAN
to) Chemical stocks must com-
the
sees
never
this
contention that skillful interprefactors
worker
Walston, Hoffman Adds
\
good
Comnaniec
larger
my
stock
depreciation,
1
From
(3)
(3) steady raw material costs; (4)
high cost of shipment in relation
accelerated
come,
29
relative
The
to
BOSTON,
Financial
Mass.
Chronicle)
Ruth
—
C.
been added to the
staff of May & Gannon, Inc., H31
Fleming
has
Devonshire Street.
to
3
page
_
a
gaged in quite cyclical businesses
serve(j
stantial Amounts
Research:
on
As
"
'
...
t
much
2 to 5% of the sales value
as
of
products is spent as
to
smaller percentages
try
as
this
The
whole.
a
research
policy
compared
for indusbenefits of
have
'
outlined previously.
/*\
u
i,H„dru
tvicf11v
u!7
Higher
Th»
historically
Returns on
ou
Has
xj-
Shown
Sales
Invested
and
industry
G row th
growth
has
and
n
ans
o
e
are
fluctuate
cycleg
c
to
Retainedttetained.
Is
is
inflated
miiated
nf
era
ot
era
normal
This
inis
the
in
hnildin^
Puuaing
depreciation
Most
Chemical
Stocks
Higher Price-Earnings
Under
Do
needed for exoansion
needed for expansion.
monev
money
a
Normal
Stocks
of
Sell
Ratio
Conditions
Than
Other
Com-
Most
panies: This is true because investors
willing to
are
which
has
chemical
pay
been
their minds
(8)
not
are
much
as
earnings.
Thus
as
leading
a
a
Year
of
particularly true
when*
(7)
WOrth. Earnings which
violently
in
business
ings
large part of their output
a
through a knowledge of past performance, contacts with men in
the industry, and interviews with
management.
nanr;ai
$12
as
for growth
established
attribute
an
in
of the
industry.
Yields
Stocks
I
The price-earnings
1+'
,.
multiplier,
or
leading chemical
%dU1„ug 1"^
1
for $eo
mg
in«s 0f $5
per
12
0r
P.
"
earnings
3 times.
is
company
A
is sell-
£omPa".y la seu
share with
earn-
pn«itinn-
a„d
Tho
nf
a
company with a strong cash pOSltjon anf]
V
nn
u •
to
fnnHeH
higher
a
nth(ir
is pntitieri
Hehi
tund<~d debt is entitled
u
multiplier
r.nmnanv
with
than
the
earnings
ratios
times.
20
In
of
the
earnings
The Favorable Outlook
For Airline Issues
about
with the
market,
price-
of chemical
com-
12
It
appears
times is close to being right
ever
times
of
doubtful
see
the
a
whether
return
prewar
to
the
period
we
20
but
25%
increased
assist
in
in
some
1945,
of the
sharply
were
in
1948
effort
an
to
amount
was
carried down into net
This
income.
continued
improvement has
which brings
into
1950
the possibility of
up'
mail
cut in air
a
payments.
with
in 1041
Specific Issues
favorable
The
and'
factors
greatly to outweigh the
potentially
unfavorable
factors:
From a technical point of view
appear
the
following issues have attrac¬
tive
graph patterns.
'^.4
(1) In the dividend-paying pre¬
ferred stock group,
The
pre-
Subsidy
I shall not
Question
American Air¬
convertible
into 4.76 shares of common, and
lines
attempt to enter into
$3.50
preferred,
the argument of
United
mail
equal,
pay
convertible into 4.2 shares of
and
how
Dividend Rate: All other
thjngs be*n£ equal, the investor
pay more for the earnings of
a comPany paying him a dividend
*0r *
same earnings but
of
n0 dividend-
lines
(5)
There
other
are
factors
which I will not take time to dis-
the
attractive technical patterm
very
<■
-
approximately 60%
1949.
and
marginal
more
companies. In 1949, the picture
slowly started to change. Costs
were
cut sharply and, as traffic
continued
to
increase,
a
large
large
era
panies have declined. An average
0f
oe»-
duced
;price_ ferred stock, all other things being
postwar
common
stock
ratios
at
averaging
the
however, and in
res^
go,d
an-
come
°fuer company with the same pei
times earnings
haye
grQup
n
Position. The stock of a
a
earnings.
share earnings out with a
Hislorically' chemical companies amount of funded debt and
as
whl
Chemical
on
share
per
rauo,
accruals fell far short of providing
at
with
•
stable
Amount
Famine's
Earnings
nnstwar
postwar
the
,
\ f Ex'i> i otf Policies,
is selling for $36
(3) Capjta,
Expansion P H i s'a ^company struclure
per share and future earnings are
been
costs
Than
Capital
uenerai.
in
Substantial
Ypar
lear
been
.
.lce ttle aaal> st has established g0jng t0 cyclical industries. Others
a future earning power lor a com- are more stable.
Pany the problem then becomes
IAUone
evaluating what these dol(2) Management: While this is
lars
earnings are worth. Ob- somewhat of an intangible, I beviously, the type of industry has lieve that good results in appraissomething to do with what earn- ing
management
are
possible
,
how much of air
is for services rendered
much is subsidy. The
importance of the question varies
with
individual
companies. Air
mail
revenues
total
for
carriers.
smaller
the
for Eastern Air¬
against 25%
as
varies widely.
5%
than
less
are
revenue
some
The
of
rate
Some of the smaller
Lines $4.50
Air
preferred,
com¬
attractive for income
plus appreciation.
■
v.
mon, appear
(2) In the better grade common
stock classification American Air¬
lines
Airlines
Eastern
and
are
outstanding.
The
1945-46
highs
were
19% and 33%. Both issues
in
Normally
Yields
on
Much
Utility
than
Lower
Stocks
or
Grade Industrial Equities:
Good
This is
Breakdown
of
it is reasonable to expect a
multiplier
ence
than
postwar
would indicate.
higher
experi-
Some of the
cuss
in
detail
methods
other
of
income,
but
which
valuing
include
inventory.
in-
non-recurrent
Chemical
Industry by Various Product Lines
Showing Which Companies Have Important Position in These Lines
stronger airlines. In any event, as
financial position
dependence on
air haaiL subsidies. The chart pat¬
terns indicate at least an approxi¬
total
Are
mation
ton-mile
per
Industrial
*,,ied
Chemicals
,
Amerk-an Commercial
Solvents
Chemical
Alkalies
Alcohol
and
and
Solvents--
Gyanamid
Dow
★
Chlorine
★
*
*
Inorganic Chemicals—General
★
*
*
*
★
*
★
★
★
*
Organic Chems.—Coal Tar
★
★
and
*
★
★
*
★
★
*
*
Finished
★
Detergents
★
*
★
*
*
Perfumes
*
★
Industrial Gases
★
*
Synthetic Fibers
I
★
*
*
'
Insecticides
*
*
Alloys
★
•
i
it
(which is
is still a
Synthetic Resins
★
.;
at
*
,
★
a
★
s*
farm
million. If
of
it
was
doubtful.
tained
planes
»
.
-A
★
difference.
of the
mail
of
War
the
more
than
as
dependence
is
not
too
on air
impor¬
would include United Air
tant, I
highs
621,/2 and 79. Neither of these
were
in
are
as
as
sound
financial
American and Eastern
but could show greater
in
appreciation
market and
a
percentage
good
airline
greater losses in a de¬
clining market.
In the extremely speclative
(4)
group
Lines
I would choose Western Air
and
Braniff Airways and
Airlines.
Northwest
The
1945-46
highs were respectively 40% for
Western,
37%
for Braniff and
63 % for Northwest. These issues
are
speculative but have wide
appreciation possibilities.
(5) All of the above issues are
the
listed
on
listed
field
N.Y.S.E.
In the
Delta Airlines
un¬
is out¬
1945-46 high was
is one of the
in¬
standing.
re¬
69%. The company
offset
to
1945, planes operated at approxi¬
mately 90% capacity
highs.
speculative
Lines and TWA. The 1945-46
ap¬
During' 1943
more
subsidies
airline
II
1945-46
the
whose
group,
issues
Under
small
In
position
World
40%
(3)
small
commodities.
In
strong
have
very
present
proximately
the
r
Pharmaceuticals
$58
half
are.
and
better
1941
★
'
Plastics and
against
planes were taken over but
creasing load factor of the
★★★★#*★
Paint and Varnish
-
was
that
as
air mail rev¬
potential war emer¬
gency,
it is doubtful that any
change will be made in air mail
rates. Another possibility
is the
commandeering of the air fleet in
a
war
emergency. This appears
★
★
Fertilizer Materials
.
per¬
question¬
cost for
maintaining approximately 1,000
transport planes for potential de¬
fense purposes. It is very small
as
compared with the $3 billion
(over one hundred times as much)
we
have tied up
in farm price
subsidy
the
*
#
Explosives
Metals and
1949
consider
1949
Total
1940.
in
enue
other
★
and
the
the
supports of peanuts, potatoes and
Products
Dyestuffs and Pigments
Flavors
★
in
revenues
in
able)
*
Organic Chems.—Noncoal Tar
Chemical
Union
Carbide
*
Stores
Semi-Finished
Monsanto
of
some
increases,
revenue
37%
we
*
Ammonia
Naval
Hercules
Powder
as
much
as
centage of dependence on air mail
decline.
Mail
was
11%
of
*
du Pont
10 times
will
total
Basic
receive
carriers
compared
in
The
regional
company
every
year
of 1947 and
seven
of the
carriers.
Since
has earned money
with the exception
dividends in
has paid
nine years.
30
The Commercial and Financial Chronicle
(650)
istered
approximately July 25
get out. It's true you
might have losses but they
won't be as deep if you buy
Continued
from
Tomorrow's
Markets
them at the lower level
The Security
strength.
Whyle
[The
Says—
article
By WALTER WHYTE=
do
not
coincide
Tme
=
Chronicle.
They
are
presented as
the
read
for
market
is
This is being
mind
about
clusions
taxes.
if taxes
are
increased above levels
already
proposed, everything is going
to be peachy and the market
Will go up. By the same token,
if somebody steps out of line
shakes the
and
Continued
Companies
Growth
of
funds
Policy
Compa¬
plums will fall down and nies, Inc., will be invested in
three different kinds of
growth
squash all over the place and
companies, according to a defini¬
the market will go down.
tive
statement by Dr.
John H.
#
*
*
Gross,
Long
I
ago
to the re¬
came
conclusion
luctant
that
in
ment
President, on the invest¬
policy of the new open-end
fund,
whose organizers
mutual
include
dealing with intangibles such
to
ter
accept the worst and
accordingly. As I see it,
chances of an excess prof¬
act
the
its tax
passing is a lot better
depending upon
where you sit.
Perhaps it
won't happen at this session
(or
worse),
of
Congress, but the/chances
will
it
are
later. The
or
sooner
come
only thing that will
EPT levy is an
early and successful conclu¬
prevent
an
sion of the Korean
if
that, you're
at the Far Eastern
you
see
can
looking
with
news
than
heart
more
*
*
.
picture
*
perhaps
I
as
see it is this:
downs, with
and
ups
more
of
the
than the former.
latter
I think the
will
market
top
of
classification
growth companies as set up by the
limited
is
board
which
nies
to
those
compa¬
of the
the opinion
in
growing at a faster rate
than the country as a whole and
board
are
continue to do so.
This type of investment is to re¬
ceive the largest proportion of the
likely
are
to
Companies. The
of Growth
funds
include those compa¬
nies working in expanding fields
will
group
as
well
or
are
those which have found
as
seeking
constantly
improved
products,
new
processes
or
added outlets.
classification are
the second
In
of the largest and most suc¬
some
which still seem
reasonable amount of
cessful companies
have
to
a
of them.
Only a
of total resources
of Growth Companies is to be in¬
vested in these concerns, accord¬
ahead
ing to the statement.
In
including for limited in¬
vestment companies little known
which in the
opinion of the directors have good
management, quality research or¬
ganizations and new products or
the
public
but
go higher.
But
jump in with both
feet, allow me a note of cau¬ processes.
tion. A market bolstered by
War is always subject to un¬ Financial Industries Fund
Expects 70% Div. Plowback
expected news.
A military
desirous to give a bright pic¬
Over 70% of the Aug. 18 divi¬
before you
ture
of the battle
trend
fre¬
quently sugar-coats bad news
or igndres it.
It isn't until
will be reinvested
dend payments
Fund's
the
in
capital
nancial
any longer that it breaks open
with an explosion intensified
by the bottling-up process. It
is this possibility that leaves
me to advise you to do your
buying on weakness. Should
stocks get below the lows reg-
Members
fiscal
the
New
San
York
Stock
Francisco
Exchange
Stock
{Assoc'ate)
Exchange
Chicago Board of Trade
14 Wall Street
COrtlandt 7-4150
New York 5, N. Y.
distribu¬
year
ending
San Francisco—Santa
previous fiscal year, he de¬
clared.
value
assets
$5,941,087
on
of
the
Fund
Aug. 8, ex-divi¬
dend, compared with $5,469,356 on
Dec.
31, 1949.
SPECIAL CALL OFFERINGS
Per 100
Shares Plus Tax
Montg. Ward @ 54% Oct.
from
als
he
best"
so
Oliver
gra¬
J.
not
of
any
that
stock
Any¬
in
us
I
which
time
to
a
combination
a
statistical
of
data
men
and
dian
even
should
is able to
buy
price
a
approximately 92% in United
States funds,
or
a
9%th point
discount off the Canadian market.
The holder of such
permitted
to
bonds here
maturing cou¬
so-called
"official
the
at
rate"
de¬
come.
is
cash
pons
(approximately
vy and,
by
yield at
92% would be 2.92%.
Action .of
since' its
Canadian
official
September
"hogging the whole show"
through excessive salaries.
(3) Aggressive research in
product improvement and manu¬
facturing methods is followed up
by a keen sales and distribution
the
last
a
a
higher
in
New
tant
devaluation
in
for
in
cooperating
solving
their
S. Smelt.. @37% Oct.
2
U.
S.
6
Steel.. @37
Atch.-To. & S. @ 125
@ 78%
Borg-Warner @64%
Mons. Chem..
@ 56%
Corp. @ 28%
Emers. Radio @ 17%
Y'gst'n Sheet @94
Republic Steel @ 38
Oct.
Oct.
Oct.
Nov.
Oct.
Nov.
Oct.
Oct.
Oct.
237.50
225.00
7
325.00
21
450.00
13
425.00
2
from
page
currency
not-too-dis¬
such
course,
2
14
Cff.
2
Subject to prior sale or price change
Members
Put
&
Dealers
50
Calls
Assn.,
Brokers
&
Inc.
Communists
Indo-China
the
or
intOiX, Must'iFnot be
down
into
Burma,
Communists
Bulgarian
Greece
the
of
into
or
them by the Admin¬
upon
belated
we
not
it
make
directly
to
munist
the
centers
if
power
starting
World
clear
tria, but--will mean that war will
come to Moscow, to the Urals, and
to the Ukraine?
Can
*
uinl **£
will become
a
And
giant pinned to the
earth by our own errors of policy,
weakened and laid opeh to direct
assult.
Kremlin
Should Be Held
:
Do
facts
not
mean
these
if
this
:
two i alternative
thought
is
the
logical
coni
against
the
,
dec!ax? **
p/)Ifc£
StaS
of the UnUed
America, .in,, its, determined
and
peace
de¬
justice
England had in World War
America
must
assist
before " the
United
Nations
that it must be Amei*-
Assembly, for approval9
policy that if further aggres^ v• • -1 believe * and urge that
occur
at any point in the should be done
world by these Communist
jmpe-
effectively to
these
forces,
we
shalj.^ hold tjie
Kremlin strictly responsible?
definitely
themselves.
arm
essentials
will
total of $35 billion
a
for
year
Must
number
a
or
of
Prepare Both
Keep
Thus
to
and
yet
not
more
ZZe
am
not
it
clear
for
War
a
and
Economy
atten¬
our
do
this job
overextend
or
can
so
economy as to
crash and failure
does not
war
fight
strong
do
come.
must be pre¬
we
world
a
home
at
this
is
because
of
and
war
if
sound
no
war
increasingly dif¬
the inflationary
policies that have
been
by the Administration
five years.
The
such
our
prices
home
and
ready in
Thus
that
effects
past
our
upon
economy
America
at
al¬
was
inflationary situation.
an
it
as
followed
these
in Korea has
war
upsetting
because
is
we
absolutely
into
move
essential
this
mili¬
tary program, we must also move
upon the financial and economic
policies
wise
that
thin
so
need
with
go
it.
Other¬
will stretch
we
our
economy
Communists will
that the
do
no
than
more
keep
us
under such intense economic
pres¬
sure
for a
period of
years
will
crash after
The medicine to
of inflation is not
icine to
that
take.
medicine
itself is
of
But
a
to
infla¬
mad
a
and
"preven¬
in
its
in
is not
a
prescribe!
crucial
is
popular
Inflation
as
cut
a
system.
the steps
we
that
pernicious
economic
are
armament
must
disease
a
wake
any
These then
We
this fever
pleasant med¬
meeting financial problems.
brings
-
cure
a
political coward's meth¬
ica must take
I
It
inflation
anemia
proposing that
"""Hie'Tjhifecf States start
per
own
own
to
To
require
years.
turn
we
our
our
if
even
must
how
damage
cause
Sound
we
tion
this
sions
me
II.
in
arming
the free and
peace-desiring na¬
tions for their joint
defense, pro¬
vided they move
decisively and
od
freedom?
Should, not this policy be then
laid
in
through
tion.
uJfL-
t
Com¬
persist
III
direct assault, including
defense program such
a
civilian
a
we
Plain well in advance?
and
1A
be
other basis?
any
sire for-world'
Responsible.
_
situation
on
r„
.u! it
v
the
through
will die facing
satellite troops of which there,will
of
they
War
satellite aggression. America must
be
prepared
to
defend
itself
.
men
of
Under this vital policy America
must be prepared to
bring war
had
Germany, qr . tjiat am,attack in Indo-China, or
of
the
Hungarian Communists'Burma, or Greece, or Turkey, or
into Austria, or orders other sim- Germany,
or
Austria, will not
ilar
moves;
and if the United ' simply, hiean that war comes to
States attempts to meet each of Indo-China, or Burma, or Greece,
those aggressions where they oc- or Turkey, or Germany, or Aus-
Our young
reversal
policy.
ficult
our
Western
cur, our armed strength will she
dissipated and spread out in jungles and mountains and valleys
in distant points of the world.
as
they
responsibility
sudden
istration's
To
policy to ask
United Nations Assembly to
that' responsibility upon the
Should
well
comes.
fix
Kremlin?
or
into
rialist
Broadway, N. Y. 4, Tel. BO 9-8470
placed
and
ican
THOMAS, HAAB & BOTTS
the
are
that they
war.
as
also be prepared to remain
</"
Our Policy Toward Russia
325.00
187.50
450.00
237.50
discharging
pared
6
387.50
17
are
In other words
Continued
military in
our
rine in the Korean
this
the
* at
would
we
lasting credit of each and every
soldier, sailor, airman, and ma¬
well, I believe, for
time,
of
the holder of such bonds,
bought today, would realize a pro¬
portionate capital appreciation.
in
President that
and
level
York
'TO
said
be
very, very difficult position.
It is to the credit of Gen.
Doug¬
las MacArthur and to the ever¬
do
dollar
particularly
its pronounced strength in recent
months augurs
should
repeated statements of
by the State Department
a
dis¬
dicated. gurrent stock
cost of
prepare
the
policy
as
9V2%
consequently,
dividihg' his U. S. cost price into
the coupon,- thus reduced, the in¬
the matter of dividends and is
in
investor
of
not
buyers
problems.
Cana¬
a
such bonds at this time at
as "management."
"they" are stockhold¬
management is playing fair
schooled
price
market
exchange condi¬
prevailing,
the
currently
American
Because
with
currently
are
count)
if
in¬
is buying
an
in¬
return of 2.75% to the call
of
It
leader¬
to
policy, placed
Canadian
which
at
what.
how
that
Gov¬
investor
tions
(2) The company has good, hon¬
est, capable and hard working
staff
the
date. Because
users;
(c)
merchandising
both as regards
"must"
a
102%
come
policies; (d) rapidly be¬
times
in
for
that
policy is
military
our
know
referred
internal-payment 3%
this issue
of
will
directly to
basic
the
1966, redeemable
and alter Sept. 1, 1961.
on
par
established
fight un¬
alert, wise
move
defend
Korea and Formosa
the eleventh-hour reversal of
credit
at
Products, Inc.
smart
advertising
coming
Uncle Sam must
and
Canadian
that- of
Bonds
is
potential
and
pressed
world
a
ready,
a
have
already
may
the
at
passing of time and the educa¬
by
pre¬
not
the
is
selling
Purolator
of
not
and
loan due Sept. 1,
Why?
(1) The company has a product
that is (a) standard in its field;
(b)
increasingly essential with
backed
reader
time are the
like
hedge ourselves with
"ifs" and "buts" that the
investments.
in
this
at
struments which I like best at this
capital stock for the average, run"businessman's risk"
ers,
avoidable,
ernment, while its particular
of-the-mill,
tion
preliminary
is
If the persistent ruthless actions
of others make
yield of
a
to
must
like
We
prepared.
by
arm,
by
for which he
the
in
investment
an
appeal
The
pertinent.
I
is
and
Troster
treatise.
a
that
"The
presentation
he
the
of
one
guessed* that
think
many
necessity of the fight,
permit Uncle Sam to be
down finger by finger,
chopped
arm
of the above factors.
rather than
I
the
when
opinion,
phic charts. It
way,
fighter when
when he under¬
aroused,
ship
wide circle seeking
sta¬
selecting
this analyst let
the main fight!
Once this broad
should
therefore will probably be an es¬
say
is
and
manu¬
and
finish
to
champion
approximately 10%,combined with
adequate marketability, is, in my
•
2 $250.00
U.
Barbara
Rosa
far
intend
approximately 3%, combined with
capital enhancement prospects of
nists
Monterey—Oakland—Sacramento
Fresno—Santa
the
Camp
tistical
pup¬
associates in the
our
state it this way. Uncle Sam is
fights
Governments
World, combined with
of the
Teletype NY 1-928
Private Wires to Ptincipal Offices
soundest
Aug. 31 is nearly four times that
Admiral
New York Curb Exchange
security the credit of
de¬
being writ¬
in
start
pared.
of busi¬
esti¬
Fund,
profits
Cities Service
Schwabacher & Co.
could you ask?
An investment which has for its
into Turkey, or df the
East German and Polish Commu-
•
Pacific Coast Exchanges
more
Sept. 1, 1966)
This piece
ten
Com¬
aggression
by
Nations
world
a
(Canadian Government 3s of
ness.
is
and
we
must not
principal
source
III
To reemphasize
me
Wood, Gundy & Co., N. Y. City
have
been
not
War
stands
years
war
announcement yes¬
an
realized
for
tion
Securities
on
the
fact
in
do
lin itself.
vyrw. TURNBULL
se
through
Chinese
The
was
Orders Executed
Industrial
mated, in
Net
Pacific Coast
it y
shares,
terday.
news
good
a
—
Charles F. Smith, President of Fi¬
can't be hushed up
bad
it
pre
a
individuals
board is
to
What
vital-
the
classification
third
its
I
prefer
I
leaders
it, in due time, against the Krem¬
have
you
recom
vigor
and
the
small percentage
So what about the market?
More
nation's
the
of
first
growth
head.
The
The
And
war.
four
ranking industrial scientists.
the stock market, it is bet¬
as
vim,
mands
States Investment
The
some
when
Growth
all the
tree,
and
unmis¬
the
United
demonstrated
services for which it
may be exchanged."
The story is
well-developed on this theme.
goods
with
through their satellites and
product; a good management, a
good field to cover, a good labor
policy.
—
Par
Mili
a
should
"War Baby"
it
However,
curity that has
from page 14
saying that
am
clarity that if
pets,
works.
Thei*e
$i
written in
so
sume.
not
are
Camp,
mend
Mutual Funds
Congress to make
up lis
The con¬
(Purolator Products Inc.
Capital Stock)
tary
waiting
Currie &
Summers, New York City.
the author only.J
those of
According to everything I
I
forth
World
(4) The company has a fair and
equitable labor policy — that
TROSTER
J.
Partner, Troster,
expressed in this
necessarily at any
with ttiose of the
views
But
set
munist
I Like Best
on
or
war."
should
we
takable
OLIVER
Walter
tive
2
page
better
Thursday, August 17, 1950
...
move
Amer¬
in this
program.
down
on
non-de¬
fense Federal spending by at least
Volume 172
Number 4934
The Commercial and Financial Chronicle
.
(651)
$4 billion per year, and preferably
worth from the
by
for defense in the past four years.
The
public dhd • the Congress
much
as
$6 billion
as
We must cut down
state
local
and
least
cuts, of course,
by
non-defense
on
spending
billion
$1
per year.
per
by at
These
year.
only be made
reductions in the hand¬
real
can
of
outs
should
insist
not
man,
into
can
worth
for
which
now
essential
these
under
conditions.
facts
hard
The
ment
of
reevaluaiion
of
grams
the
of
requirements
all
other
friendly governments
will
it
cause
pro¬
well. For
as
other
supplies
,
such
of rubber and tin
British
the
from
and
sterling area and from other na¬
tions, that the dollar-gap question
of the Marshall Plan is entirely
people
Far
ing
'
States must
The United
not at¬
usual,
nor
carry
nor
services
even
these
usual
as
crucial
next
during
while
years
priority is given to adequate re¬
of
ourselves
and
our
associates in the United
arming
friendly
Nations.
and
in
economic
The
the
Cold
all
of
taxes
types
upon
to raise a minimum ad¬
ten
billion dollars per
everyone
ditional
The
must follow
and
reinstate
controls
credit systems of our
government
through
the
over
keeping a steady check
installment credit and shrink¬
country,
on
to
ing
appropriate degree all
an
forms
add to the
credit which
of
War.
Korean
that
that
we
a
price and wage ceilings, and ra¬
only
when
needed; but definitely having it
promptly and completely set up
using
tioning;
Cold
be adopted
reluctance
of
people
because
of
the
distastefulness
controls
to
the
American
and because of lack of confidence
Administration
the
in
fear
and
administration will
seriously handicap production and
that the controls might also be
used
for Socialist
purposes
be¬
cause
of
the
many
Socialist
schemes that have been proposed
that
clumsy
last
in
Administration
the
by
these
years.
and
that
insist
administered
be
Congress
the
these
by
controls
a
special
under an exec¬
utive, not in politics, confirmed
by the Senate, who has the con¬
fidence of both political parties,
emergency agency
business
has
who
labor
and
and
management
agriculture of ex¬
qualifications to adminis¬
economic mobiliza¬
tion controls and regulations.
cellent
these key
ter
place time
limits upon
the control legisla¬
tion and should provide that the
Congress
controls
must
be
can
also
lifted
in
whole
by Congressional reso¬
lution
to
further
prevent
the
President from abusing the power.
experience of our country
World Wars shows that
The
in
both
an
economy
can
be mobilized ef¬
fectively only if the mobilization
is in the hands of a cen¬
coordinated agency, and that
program
tral
it depends so
of
ity
upon
much upon the abil¬
the men in charge and
the confidence placed in
them.
failure
should rise up
permit these emer¬
Congress
refuse
to
to
be scattered
among the present politically ap¬
powers
gency
pointed
or
members of the Cabinet,
of the other present mem¬
of the Administration who
any
bers
internal feuds
basic policy.
of
and
The
errors
;
■
,
people of the United States
have not received their money's
with
move
difficult
most
us.
prob-
of the application of the Communist Chinese
Government for the
not' seat in the United Nations.
to
;„wage
peaceful
systems
no
will
the
answer.
great
the
apparent
be
show leadership
strengthening of
It should
all
to
Nations to
advance
individual
of
of
the
different
tions in Asia.
It
should
fraction
spent
to¬
bility is
no
devolves
the
be
United
of
its
,
the
the
cause
Asia
needs
amount
of
as
of
another
to its recognition of
obligations
fundamental human
and
rights
people,
/This commission should also obown
the
border
Manchurian-Korean
and
China
money
the
Chinese-Indo-
border
to
determine
both whether the Chinese are violating
do .not have the re-"the United Nations Charter,
spend more and bejf such a United
Nation's Corn-
non-industrial
has
of
an
...
.
_
will
for
in
then
have
clear
rejecting the applica-
^jon for
coping
with
If it had
the leading nation
world, which with one-six¬
of the
teenth
world
not been for
sian delegate from the United Na¬
tions Security Council, the Korean
the
of
Our
the
world's
vet0 seat,
if entry is
challenge
cient
Security Council.
show
dele¬
the
that
in
used
the
first
future
re¬
unless
we
veto
events.
Unless
But if this great nation
critical
draw
and,
in
and
from
300
bushels
of
America.
million
wheat
bushels
hand.
on
shipped
wheat
to
This
surplus wheat
America
of
Yet
this
..
«
-x
TT
j
scene,
at
reach
A further United Nations
jluest should be issued to
has
re-
its
^orfan1VTCfomml!?lon and
the
C°mmandeur> Gen;
short-;!?*1 facArthur, to assemble and
na¬
the
point of battle, clearly
point out the need of a genuine
United Nations police force.
U.
S.
Should
Lead
U. N.
in
Revising
Charter
this
their
future
convention
rewrite
the
Charter, which
United Nations
hour, if they
from
heritage;
the
same
time, within
charter, through a
Assembly motion, action
present
special
should be taken by those nations
which are in accord with us to
enlist and
equip and train
raw
and
materials,
useful
to
our
to
in
future
stockpiles,
in
repay-
ment.
Initiative in developing an economic program for Asia
should
come
from leaders of Asia itself,
Such
men
Liaquat.
Pandit
as
Ali
Romulo
Nehru
Kahn
and
Carlos
and
under
their
the
move
upon
leadership,
America
Nations
economic advance.
Such action has
Congress
in
requested
Mutual
De-
Act, but the State
Department has not acted.
America should constantly point
out the imperialistic aims and evil
objectives
of
the
Soviet
contrast this with
new
of
a
non-imperialistic,
enlightened
approach
Western
Union^
deeds
modern,
of
be
advance
lneluding
the
all
world
the
;
~
enc®uraSement'
to
given
cause
of
those
who
of
wish
freedom,
.tt1056
P11^0115 within
the^countriesnowJmder Communist
dictatorships. This part of
prograrn
acterized
offensive
should
as
in
should
the
best
be
our
char-
frpnt line of
the
be
Cold
placed
at
experiences
we
have
our
war.
under
able
of
ances
we
peaceful
will
officers
that he is sincerely
serving to advance
objectives of the United Na¬
in
tions.
would
not
refugees
members
are
Nations, but also of
the Iron Curtain
countries, and of young men of
Italy, of Germany, and of Japan.
These forces could have great ef¬
fectiveness in deterring future ag¬
must
Office
of
as
at remote
battlefields during
the period that
the resulting World
sors
would of necessity be fought
directly against the Kremlin.
War
Finally, it is high time that the
countries of the world, in¬
free
we
not
are
reactionary
indicate
seeking to
status quo,
^0 encourage
the
genuine
weH-being of men.
amine
their
Communist
For
too
have
policies
reex¬
the
toward
party.
long
blind
been
governments
our
vicious
the
to
foreign
party
organizations.
long these fifth column
that
or
For
too
organizations have assisted in the
that
recruitment
has
resulted
but
that
freeze
that
a
portant scientific, atomic, and dip¬
in
World War III Not Inevitable
>jn
spite
analysis,
.World
am
0f
I
do
War
certain
gj-im over-all
not consider that
my
III
that
is
inevitable.
the
I
non-Commu-
njsj. mini0ns among the people of
Russia d0 not want war.
I beneve that if the United States and
her
peace-loving associates quickjy an(j steadily build sound armed
strength and at the same time
carry
on
an
alert, intelligent idea
a
offensive
winning
a
against
dictatorships,
better than
even
just world
we
chance of
peace
with¬
shift
a
late
unpre¬
the
small-
has
been.
would
be
then
devastating.
fellow
with
citizens:
face
us
this grave danger
understanding of its
clear
a
nature and power, and with
determination
Let
take
to
win
the
decisions!
through!
calm
a
through.
make the sacrifices!
us
We
Let
We must win
through!
It will require treasure and
and
blood.
believe, under God,
victory
of
the
come
has
days will
happiness and
that the
mankind
of
known.
faith
have
that
is
this
be¬
so
I have faith that the under¬
cause
lying
life
1
yet find
may
dark
the
for
well-being
I
toil,
But
will win.
we
brightest dawn for free¬
and
dom
we
these
us
win
can
philosophy of
is
right.
be free!
Man
way
of
meant
to
our
was
And there is
God!
a
Maine Central
Equip.
Trust Ctfs. Offered by
Halsey, Stuart Group
Halsey,
Stuart & Co. Inc. and
are
offering $5,600,000
associates
Maine
Central
equipment
RR.
trust
Co.
21/2%
certificates
ma¬
turing annually Sept. 1, 1951, to
Sept. 1, 1960, inclusive.
Issued
under
the
Philadelphia Plan, the
certificates
being
are
offered,
subject to approval by the Interkt&te Commerce Commission, at
prices
to
from
yield
1.65%
to
2.75%.
The certificates will be secured
by
two
1,000
new
h.p.
Diesel-
electric
switching
locomotives,
eight new 1,500 h.p. Diesel-elec¬
tric
road
switching locomotives
-
lomatic secrets.
The legal
these
column
fifth
should
be
privileges extended to
removed.
organizations
These
privi¬
leges should be removed with the
greatest
care
to preserve the fun¬
of speech, and
damental freedom
we
progress
spying and stealing the most im¬
of
thought, and of academic and
scientific inquiry.
But freedoms are not served
.
in
assur-
intentions;
clearly
Communist
the
such
the
in
anywhere
subversive nature of these
independence of people, and move
toward a just and lasting peace.
have
position
or
Communist
will definitely reduce the tensions
of war, increase the freedoms and
the
a
been
indeed
enroll¬
citizens of the
of
which
from
the
permit
only
democracies
these
we
and
as
Korea
whirlwind
red
world
This
ment
our
look for actions that
cessful
in
to meet in
time, seeking
treaties
or
economic
leadership
con-
will not accept mere words
and
in
a
We must make it clear that
leadership of high caliber, preferably someone who ,has had sueexperience
express
any
reli-
great
our
willingness
conference
the
World to Asia.
3n(*
should
tipuous
that
been
the
fense Assistance
teachings of
gions.
We must
should fdocuments
far-reaching Asiatic
a
the
in
in
dur fundamental philosophy and cluding the United States,
Quirino' the avenues for true peace,
Elpidio
United
we must exercise
moral leadership in keeping with
and
should be encouraged to work out
an
economic plan for Asia, and
and
ns'
Through it all
production
our
The
costly
out
in containing the aggres¬
promptly shipped. In fact Amer-,.
can quite
likely receive valu-
action
that
moves
information bearing
a]W assistance given, followi"S the ceasefire order, to the
*nva n£ North Korean forces; by
a.ny member of the United Na-
and
scale
And
convince the recruit¬
world
be
desperate
as
vided he
ing
think
entire national defense
our
be
thoughtfulness
gressive
should
will
truly
a
"P0!1
wheat
hour,
United Nations police force, per¬
mitting any man to enlist therein,
from any nation in the world, pro¬
can
to
and reverse our decisions at
Let
At
States waits until
minute
problems through and if
My
the
upon
founded,
was
win!
last
veto, and to strengthen it in the
light of experience and of common
sense.
faith
fundamentals
nation
If the United
the
be done under Article 109 without
*ePorl;
surplus
the
their
will
we
a
ican
years,
mind
which
their
if they keep
can
to
coming in American action. Amer-
able
in
and its
of their mis¬
sense
strength
pared
The United States, then, should
take the leadership in
planning a
of the United
x-
surplus
inexcusable
an
.
surplus
India.
is
Entire confused Asiatic
over
America
of
any
has
individual
of
tional decisions of other nations to
interested
example, India ease the
present tension and may
todaiy
needs
wheat.
India
has. well
result, through the good ofneeded wheat bsdly
for| the past fices Qf Nehru and others, in a
10
months. India has sought; 36
trend
toward
the
better in the
million
because
ness
an¬
think
are broad,
far-seeing,
is
sion
being
of
we
plans
our
vision
our
Likewise, the lack of United Na¬
in
all
will fail.
a
police forces
than
in
one
philosophers
Greece.
people have
the
constructively
is
the
less
no
fundamental
deeply, unless
The return of the Russian
gate and his actions since his
is
all
history. It is a clash of basic
ideology that can be traced back
to
veto would have stopped the
a
of
of
action could not have been voted,
permitted, the resulting period of
will
people,
one-third
most
for
investigation
,.
specific
one
is refused entry to China,
nations
ground
American
materially assist
can
Jnission
dollars.
instances
many
surpluses
economy
and lesser
different
terms
in
In
the
of its
small
a
domination
international
of
'/ serve
only
government is under the
and
power
the
the Marshall Plan,
on
we
of
less
tions
not
or
this
responsi¬
than that which
upon
boycotting absence of the Rus¬
be
whether
of
Our
world's goods and services.
conditions.
clearly
complete
condi-
V.
involve
to
It
nation.
producing
for
will
to
deep
Our stake is
survival
adequate
inquiry
should
be
made before passing on the appli-
freedom,
requires the early initiaa
comprehensive Asiatic
because
to
free
the
Nations in its present form is not
turn
and
precedent.
Thorough
Economic Program, parallel to the
Marshall Plan, and yet different
and
than
^
their
This
by
less
the
now
the
that
perception
a
dom of all mankind.
of
war
with
well-being and free¬
God this
pray
enough,
enough.
of
Our problem is no less than that
States' of the future
United
world, I
must
ward
the
people
competition
without
We
of
of the
„
objective of America and
expand
not
and
Clear-
living; to recogdignity and their cation as
rights regardless of; color; and to applicant
of
good
ly this application should not be
reasons,
nize their human
have been involved in these weak¬
ening
the
appointment of a special cornIt
must
become
increasingly., mission to go to China and invesclear
to
the
many
millions oL tigate the application.
The seat
peoples of the world on both sides carries with it a veto power and
of the Iron Curtain That it is' the thus
it
is
a
situation
without
throughout
Thus
and
France
in
this 'granted. But Great Britain
War today is the Admin-' India have voted for it.
......
An
in part
or
the
and
lems in this regard is the question
an
ica
oublic
The
should
must
we.
of
of
the
w
As
a
system will
understandable
One
For
the
It would appear wise to ask
consequently, the heavy burden
War successfully. "
" Great Britain and India to join that fell
upon
our
unprepared
with us in the United Nations for American
Asiatic Economic Program
divisions; and the slow¬
the
Asla-
Such
is
Great Britain
engaged,
are
we
istration's
it
and ready to go.
with
But
one
because
must place into
system for allocations,
Finally,
Special U. N. Commission for
the United Nations
tendency to shift
right now to the
attention
all
sources
inflationary pressures.
readiness
There
incurring the horror of World
War III.
United Nations.
and India and other members of
understandable
tion
year.
.
War.
won
As these major policies unfold
consistent efforts should be made
must
we
only be
can
China
their standards of
in¬
government must also
crease
A
major,-offensive
a
I
.
these .-military
policies
upon
of the United
Controls Required
and
Cold War
a
to have
embark
offensive,
with hot ideas.
need.
sincere
Taxes
that
have the armament they
Korean
on government as
Marshall Plan as usual,
pork barrel as usual, nor
tempt to
get
their
money's
increased billions
with
to
resources
War
confident of excellent results.
We
should
always remember
the
Coupled
out
Russia
Cold
a
am
more
men
details
and of the
conduct
way
forget
changed.
take
—-
World
and
sponsibility and the
caliber
must be spent.
during
methods
cannot be spelled out in advance,
but if able men are given the re¬
be-brought
to
Services
War II. The
important, only in
will the job be done.
Only in that way will our- fight-
that
the
that
mean
United States will be buying
quantities
a
government and of
our
example,
rearma¬
must
Strategic
charge of armament production,
Only in that way will the Ameri-
but
not
top
a
politics,
Administration-
government and in other
activities which may be desirable
are
that
in
the
fifty billions spent
31
by
giving legal shelter to organiza¬
tions so clearly a part of a world
conspiracy
directed
by
un¬
an
friendly foreign power.
are
Freedoms
truly endangered by such soft
and
confused
As you
scope
that
review this message
you
get an impression of meas¬
too far-reaching and
of a
ures
too extensive.
Let
me
plead
realize that we are in
this
desperate condition in the
world today because we have not
had policies with vision far-reach¬
ing
you
enough,
three
electric
tives
with
a
scope
broad
-
1,200
new
road
and
h.p.
switching
the
by
equipment completed
years
two
1946,
1947,
4,000
h.p.
passenger
luxe
following
1948
1949:
eight
coaches; two
taurant
lounge
cars;
sheathed
box cars; two
three
in the
and
Diesel-electric
baggage
cars;
249
Diesel-electric
Diesellocomo¬
new
locomotives;
passenger
thinking—such cod¬ tives;
dling of organized communism.
may
and
coach-
two
50-ton
steel
3,ti00 h.p.
freight
2,000
de
res¬
locomo¬
h.p.
Diesel-
electric passenger locomotives; six
1,500
h.p.
Diesel-electric
freight
locomotives; five 1,500 h.p. Dieselelectric
three
switching
road
motives;
1,000
electric switching
four 660
h.p.
loco¬
Diesel-
locomotives and
h.p. Diesel-eletric switch¬
ing locomotives.
32
The following
statistical tabulations
latest week
Indications of Current
month available.
week
Business Activity
or
or
month ended
on
Equivalent to—
ingots and castings
Month
Ago
that date,
gallons each)
Crude
100.1
99.9
98.2
83.5
1.930.000
1,926,800
1,894,800
1,539,300
of
oil,
Gas.
Residual
Btocks
5
5
5
5
5
115,944,000
5,870,000
5,912,000
5,188,000
19,783,000
19,981,000
20,059,000
2,055,000
1,752,000
1,663,000
7,41.9,000
7,266,000
7,353,000
6,259,000
gas
sales
fuel
Residual
(bbls.)
oil
Steel
oi
of cars)
freight
Revenue
5
8,079,000
7,870,000
7,916,000
108,895,000
'109,206,000
114,278,000
108,444,000
23,560,000
23,352,000
22,035,000
24,885,000
Number
5
62,557,000
61,437,000
56.568,000
72,222,000
Volume
5
41,791,000
42,253,000
41,874,000
5
837,218
553,876
716,863
5
702,259
685,994
540,985
565,643
—
including
*8,131,515
5,784,831
6,192,438
6,252,672
5,177,253
alloy
of
June
tons)—Month
(net
67,281,000
844,849
July
of
products,
ASSOCIATION—
AMERICAN TRUCKING
of
Month
June:
of
freight
302
reporting,..
transported
(tons)
302
302
4,164.432
"4,020,397
3,311,137
77,868
carriers
motor
of
75,766
INC.—Month of
INSTITUTE,
lbs.)
2,000
_
74,569
84,846
of 2,000 lbs.)
Stocks at end of period (tons)
Unfilled orders at end of period
ENGINEERING NEWS-
(tons of
all grades
output,
zinc smelter
Slab
Shipments
CONSTRUCTION
85,143
7,220,000
5
5
Aug.
Aug.
freight received from connections (number of cars)
ENGINEERING
163,160
118,094
July:
Revenue
-OTVIL
2,226,105
182,584
produced
for castings
steel
steel
stainless
and
Aug.
(number
2,474,414
3,033,599
INSTITUTE:
STEEL
tons)—Month
AMERICAN ZINC
loaded
3,334,277
152,222
therms)
(M
therms)
(M
AND
and
ingots
(net
Aug.
at
IKON
Shipments
AMERICAN RAILROADS:
OF
Ago
Month
therms)
(M
sales
gas
sales
gas
AMERICAN
Aug.
oil, and distillate fuel oil (bbls.) at
ASSOCIATION
Year
Month
8,087,610
For
Previous
2,926,174
2.679,562
—
therms):
(M
gas
Aug.
at
at
(bbls.)
Kerosene
of that date:
94,390
ASSOCIATION
GAS
Natural
Aug.
(bbls.)
unfinished gasoline
and
are as
June:
Total
17,900,000
2,293,000
refineries, at bulk terminals, in transit and in pipe lines—
at
Finished
Gas,
4,721,450
Aug.
(bbls.)
output
oil
fuel
5,475,500
Aug.
-Aug.
Aug.
Aug.
— daily
average (bbls.)
(bbls.)
output (bbls.)
and distillate fuel oil output (bbls.)
output
Kerosene
5,521,550
5,040,350
—______
——
__
either for the
(bbls. of 42
stills
to
runs
Gasoline
of quotations,
cases
are
Latest
AMERICAN
Mixed
condensate
and
in
or,
Ago
Aug. 2o
INSTITUTE:
output —daily average
PETROLEUM
oil
Thursday, August 17, 1950
.
Dates shown in first column
Manufactured
AMERICAN
.
production and other figures for the
cover
Year
Week
Aug. 20
tons)
(net
6teel
Previous
Week
(percent of capacity)
steel operations
Indicated
.
Month
Latest
INSTITUTE:
STEEL
AND
IRON
AMERICAN
Crude
Financial Chronicle
The Commercial and
(652)
72,080
85,408
63,701
53,423
46,067,000
*27,071,000
2,858,000
(tons)
90,920
26,665
35.350.000
__
19.687
65,368
(tons
*4,196,000
3,925,000
*515,500
23,300
$240,000
$211,000
RECORD:
Total
Aug. 10
Aug. 10
Aug. 10
Aug, 10
construction
S.
U.
construction
Private
construction
Public
municipal
and
State
Federal
Aug. 10
—
$164,018,000
87,469,000
76,549,000
67,061,000
$209,262,000
$364,963,000
$257,314,000
116,094,000
254.053,000
135,745,000
93,168,000
110,910,000
121,56),000
72,646,000
68,385,000
106,697,000
9,488,000
20,522,000
42,525,000
14,872,000
OUTPUT (BUREAU
COAL
of
(U. S. BUREAU OF MINES):
and lignite (tons)
anthracite (tons)
OUTPUT
Bituminous
Pennsylvania anthracite
coke
Beehive
690,000
TEM— 1935-39
5
296
*295
CONSUMER
228
218
6,253,141
IN
CITIES
LARGE
100—As of June
—
15:
and
6,247,464
6,006,345
5,530,090
products
bakery
—
Dairy products
INDUSTRIAL)
AND
(COMMERCIAL
—
BRAD--
DUN &
10
INC.
STREET
194
168
COMPOSITE PRICES:
Finished steel (per lb.)
Aug.
Aug.
Aug.
(per gross tot-)
(per gross ton)
iron
sweets
Bcrap steel
8
8
8
3.837c
3.837c
3.837c
3.705c
Rent
$46.61
$39.17
$46.38
$46.38
$45.91
Fuel,
$37.33
$37.08
$20.00
(E.
PRICES
.__
and refrigerators
Gas and electricity
;
electricity
refinery at
refinery at
Export
Lead
tin
Lead
(St.
Zinc
York)
(New
York)
(New
Louis)
(East
St.
-Aug.
Aug.
Aug.
at
at
at
Louis)
Aug.
at
9
9
9
9
22.200c
22.425c
9
101.500c
12.000c
11.800c
9
15.000c
22.200c
22.200c
22.425c
17.550c
98.000c
73.750c
103.000c
12.000c
11.000c
15.125c
11.800c
10.800c
U.
S.
Aug.
Aug. 15
Bonds
Government
^
15.000c
10.000c
102.02
102.10
114.66
Railroad
Public
Group
Utilities
Industrials
Group
Group
119.82
118.40
O.
Average
DAILY
YIELD
BOND
H5.43
108.70
115.43
114.66
113.89
108.52
106.92
106.04
111.62
117.00
119.82
111.44
116.22
119.20
Aa
A
Baa
_
Railroad
Group
Utilities
Public
Industrials
2.35
2.34
2.85
2.92
CAN
of
._—
15
15
15
2.61
2.67
2.88
3.24
2.61
2.66
Group
3.08
2.80
2.6(3
Aug. 15
INDEX—
COMMODITY
450.5
(number of
2.68
2.73
Orders
received
2.93
3.25
3.34
Production
3.22
3.20
2.84
activity
Percentage of
"Unfilled
orders
at
(tons)
2.69
2.69
462.1
338.0
429.8
PAINT
REPORTER PRICE
DRUG
AND
229,455
215,909
129,356
171,094
96
55
Lead
(in
TRANSACTIONS
LOT
FOR THE
AND
DEALERS
524,391
491,744
Zinc
EXCHANGE—SECURITIES
EXCHANGE
N.
THE
ON
Y.
128.1
126.7
121.6
of
MINES
OF
Number
of
shares—Customers'
Dollar
75,168
fine
40,021
15,699
51,541
July
sales
29
1,096,323
1.132,756
1,543,106
2(H)
futilities
29
$44,778,927
$49,920,752
$67,599,778
$17,155,684
t2,889,579
*51,785
149,433
OF
(24)
MIDLAND
ISSUES
OF
3.35
6.64
£13.854,000
£5,931,000
£25,151,000
$745,406,421
580,566,624
77.89%
$735,451,268
588,186,157
79.98%
$84,272,231
$80,746,674
$72,538,619
90,046,721
72,000,000
67,031,547
45,000,000
61,133,357
42,000,000
$824,500
658,900
$1,104,000
525,964
$257,376,855
$253,902,387
5,517,087
3,337.163
$253,056,400
$251,859,768
$250,565,224
GREAT BRITAIN-
of July—
LTD.—Month
BANK,
4.70
3.41
6.17
4.500,477
IN
4.54
6.17
$779,182,389
588,763,307
75.56%
_____
EARNINGS— CLASS
of
5.96
3.74
.
(200)
(ASSOCIATION
Month
8.97
5.60
$257,556,877
(10)
yield
CAPITAL
6.78
6.92
4.50
—
6.35
5.89
—
6.36
5.99
(25)
ROADS
I
RRS.)
AMERICAN
—
June:
operating
operating expenses.
ratio—per cent___
revenues
____
railway
operating income before charges
Net
income
after charges
UNITED
STATES
BUREAU
purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
July
29
31,685
29,716
(est.)
short
sales
July
29
256
321
293
other
sales
July
29
31,429
29,395
45,550
15,856
942,885
890.064
1,434,872
IMPORTS-
AND
CENSUS —Month
of
June
Z
Exports
141
Customers'
EXPORTS
OF
omitted):
(000s
15,997
45,843
Customers'
$875,900
685,600
436,867
Number
shares—Customers'
of
total
sales__
July
29
Customers'
short
sales
July
29
10,001
12,116
11,359
Customers'
other
sales
July 29
July 29
932,884
877,948
1,423,513
$33,474,526
$59,792,806
Imports
p
431,405
$34,540,019
$14,092,163
Dollar
value
Round-lot
sales
Number
.July
29
29
242,830
29
-July
Round-lot
UNITED
of
209,540
159,990
422,380
'
242,830
209,540
422,380
Net
'
424,110
485,725
470,700
167,310
U.
SERIES
S.
DEPT.
OF
LABOR—
U. S.
DIRECT AND
DEBT
omitted):
balance
debt
—
2.236%
2.200%
$275,000,000
$275,000,000
$275,000,000
257,540,746
257,357,352
253,876,874
19.503
25,512
$257,556,877
$253,376,855
$253,902,387
721,275
724,721
764,750
$256,835,601
$256,652,133
$253,137,636
18.164.398
rate
2.200%
16,130
annual
of July 31
Aug.
products
*165.3
161.9
153.3
Aug.
other
than
farm
and
foods
:.
products
lighting
and
metal
Chemicals
and
figure.
164.0
173.1
150.6
241.6
246/4
243.7
face
18,347,860
21,862,363
(000s omitted):
amount
that
outstanding
be
may
time—
one
175.2
171.9
160.9
Aug.
Aug.
255.3
257.9
265.1
224.8
154.4
*153.4
149.9
145.1
147.5
*146.4
138.7
137.6
Total
public
gross
Guaranteed
debt
obligations
not
owned
by
the
211.2
174.7
materials.!
Aug.
134.1
134.0
133.2
Aug.
173.9
173.9
173.1
168.2
Aug.
212.7
210.7
203.8
188.9
ZZ.ZZZ Aug'
120.8
120.5
115.7
119.1
Treasury
Total
debt
public
gross
and
guaranteed
obligations
Deduct—Other
gations
not
outstanding public debt obli¬
to debt limitation
subject
129.8
products
materials
Building
176.3
169.5
Aug.
Meats
commodities
179.2
168.6
Aug.
j
177.5
Aug.
Livestock
Foods
♦Revised
165.5
Aug.
Grains
and
any
LIMITATION
Outstanding—
commodities
Textile
STATUTORY DEBT
GOVT.
As
at
1926—100:
Metals
GROSS
31
fund
Computed
159,990
Total
NEW
PRICES
WHOLESALE
Fuel
July
purchases by dealers-
.July 29
Farm
STATES
GUARANTEED—(000s
As
General
shares—Total sales
of
5,462
by dealers—
July
All
*3,622,406
July:
of
(125 )
(15)
Average
NEW
YIELD
AVERAGE
STOCKS —Month
COMMON
Industrials
Odd-lot
All
t34,15g
3,441,716
456,490
July
total
tl65,982
*37,837
49,490
_____
t62,729
*193,579
36,246
ounces)
♦74,522
191,549
Taxes
COMMISSION:
purchases)—
value
36,564
—
Operating
36,956
6,434
40,585
the
tons)
Total
STOCK
orders
3,874
67,084
(number
month
(BUREAU
WEIGHTED
MOODY'S
128.7
July 29
Number
297,843
3,464
of
Net
Odd-lot sales by dealers (customers'
16,127,000
to
short tons)
(in
323,864
ODD-LOT ACCOUNT OF ODD-
SPECIALISTS
prior
cars)
Total
MTOCK
linters
of recoverable metals in
short
(in
Silver
82
5
INDEX—1926-36
AVERAGE=100
154.2
States:
RAILROAD
-OIL,
of
(in
Banks
226,087
5
187.3
10,308,000
(in short tons)
fine ouncest
Copper
2.86
2.67
Aug. 11
(tons)
185.4
155.3
3.39
3.09
2.81
248,508
5
5
140.6
cf June:
production
Gold
2.96
334,123
219,0000
98
637,177
Aug.
Aug.
Aug.
Aug.
———1
(tons)
96.9
183.0
146.6
COMMERCE):
OF
____:
OUTPUT
METAL
2.70
2.88
ASSOCIATION:
PAPERBOARD
97.1
189.1
1:
Aug.
cars)
Insurance
JKATIONAL
135.6
INSTITUTE)—Month
CAR
RAILWAY
Railroads
MOODY'S
138.8
July:
of
2.61
15
(DEPT.
Backlog of orders at end
2.92
Aug. 15
Aug. 15
Aug. 15
—.—
Group
oi
___
Deliveries
2.23
2.86
Aug.
Aug.
Aug.
Aug.
120.6
138.9
DEPT.
S.
bales
gross
(exclusive
bales
1)
Month
Aug. 15
corporate
123.5
283,242
500-lb.
United
Aaa
190.3
123.9
115.82
119.20
2.35
Aug. 15
176.5
185.1
FREIGHT CAR OUTPUT—DOMESTIC (AMERI¬
109.42
109.06
116.80
119.61
AVERAGES:
Bonds
Government
S.
PRODUCTION—U.
COTTON GINNING
Mine
MOODY'S
142.9
174.6
185.0
185.2
AGRICULTURE—As
OF
119.00
116.02
137.3
174.3
155.3
AND
Production
120.84
119.41
Aug_ 15,
Aug. 15
"
-
114.66
120.84
119(J1
Aug. 15
Aug. 15
Aug- 15
A
Baa" ZZZZZZTZZZZTZ"ZZZZZZZZZZZZZZZZ
115.82
120 84
15
/.
corporate
Xaa
207.6
103.76
Aug. 15
Average
299.2
14.800c
15.000c
COTTON
Aug.
DAILY AVERAGES:
PRICES
BOND
198.6
217.9
97.0
furnishings
Running
MOODY'S
144.4
206.5
17.325c
22.425c
182.6
149.1
146.6
Miscellaneous
Aug.
Aug.
Domestic
240.6
177.8
189.4
Z
Z
House
Electrolytic copper—
Btraits
___
fuels
Other
M. J. QUOTATIONS):
&
Z___
;
Ice
METAL
___
Clothing
IRON AGE
Pig
oils
and
Sugar
239.5
295.6
•t
.__
and
Fats
169.7
246.7
139.6
vegetables,,
Beverages
176
187
169.6
204.3
169.6
217.2
___
and
Fruits
168.6
177.1
foods
200.3
169.6
—
—
170.2
204.6
items
All
$259,000
MODERATE
FOR
Eggs
FAILURES
557,000
YORK—
NEW
Meats
.Aug. 12
kwh.)
000
(in
output
INDEX
FAMILIES
1935-1939
RESERVE SYS¬
INSTITUTE:
ELECTRIC
OF
31 (000s omitted)__
PRICE
Cereals
Electric
—
BANK
RESERVE
of July
As
All
KDISON
tons)
OUTSTANDING—FED¬
PAPER
INCOME
SALES INDEX—FEDERAL
AVERAGE=100
STORE
WEPARTMENT
tons)
(net
(net
tons)
(net
7,000
Aug.
5
ERAL
7,522,000
48,000
74,200
Aug,
(tons)
Beehive coke
1,610,000
965,000
*163,600
10,560,000
935,000
139,400
*10,760,000
5
5
Aug.
Aug.
coal
Pennsylvania
lignite
and
coal
COMMERCIAL
GOAL
MINES)—Month
OF
July:
Bituminous
allied
products
^Includes
476.000
barrels
of
foreign
crude
runs.
Grand
Balance
able
total
face
under
♦Revised.
outstanding
amount
above
of
obligations
authority
i-Monthly average
1949.
issu¬
+Not including stock of American Tel. & Tel.
Number 4934
Volume 172
Continued
jrom
The Commercial and Financial Chronicle
.
.
.
prices, whichever is higher.
13
page
that
means
like
Observations
and
eggs
met
ment
requires long-term forward order¬
sters
ing,
in
by overtime,
of
by employ¬
and, as a real
bright spot, by taking on the old¬
women
who
have
difficulties
had
This lat¬
is 25% higher than 10
sale
ter
location
"seed
corn"
will
these
to
costs
unit
per
high
a
de¬
seem
signed to increase.
attention.
stant
Labor
contains
and
ago,
years
in¬
demand
parity
will
Production
the
next
meeting the threat of Russia's
divisions together with the
defense
in
175
now
planned
at
huge force
is
year
of
Total
Government:
of Communists under
is
elsewhere
bound
to
re¬
in
prices field
require
time
great
no
quired
for
expenditure
stand-by condition,
The
ing of
Fortunately, panic buying at the
seems to be
subsiding.
retail level
Stocks
of
are
in
subject
or are
is true of
same
merchant
shipping and tankers,
while the air freighters are being
taken from commercial air-lines.
For
many
able
to
facilities,
draw
Canada
and
other
Private: The
American
This
food,
mills,
power,
all kinds,
of
be
the
steel
petroleum
re¬
transport facili¬
and factory ca¬
pacity. This expansion
to
expand.
mines,
and
fineries,
ties
will
include
alcohol
allies.
greatest
may
prove
weapon
duced, and undoubtedly
pro¬
our
ene¬
mies will take it into account for
their
decision
arrogation.
To
date, however, there is
evidence that
visible
no
this expansion
here
is subject to co-ordinated plan¬
ning, and it might be the area of
greatest contention and confusion.
On
the
legislation
tal
provides
financial
fense
hand,
they
as
to
for
de¬
will
be
when the Eco¬
Act
if
see
new
govern-
Many
were
Expansion
duced,
for
assistance
production.
alert,
nomic
the
intro¬
was
such
financing
is utilized to advance government
control or regulation of
industry
in
peacetime.
Labor
-
Selective
legislation currently under
consideration
by Congress con¬
control
wages
and
labor.
is
It
be
no
secret
that
controlled
these
unless
will
the
cost
of living is stabilized and "equal¬
ity
of
sacrifice"
is obtained by
profits through ex¬
profits taxation and contract
limitation
cess
of
Since
renegotiation.
these
seem
months away, formal con¬
trol of wages will not come soon.
many
Labor
there
leaders
will
be
are
that
aware
stronger attempt
a
this
time to freeze wages, to ban
strikes, and
possibly to freeze
employees in their jobs. Already
there
are
vance
wages.
Labor
(b)
upward,
of
several
has
to
moves
asked
for
ad¬
greater
will
be
rather
dustry
its
table.
planning
issue
on
Mobilization
but so far no major in¬
has given labor a seat at
raised
was
This
latter
several times
World
War II, as by Walter
ther.
It
be
can
expected
in
Reube
to
urged more forcibly in the future.
The
Manpower:
more
than
eight
today than it
was
labor
million
force
is
greater
at Pearl Harbor
.time, but the pool of unemployed
is 300,000 less.
Already there
are
pinches, with greater
strain coming.
Mobilization will
found
neces¬
when
that
prices are con¬
trolled, they will be fixed to the
relationship to other prices exist¬
ing before the South Korean at¬
tack.
Perhaps
factor
in
the
the
important
most
price picture is the
of
prices. These are repre¬
by three indexes: the Con¬
sumers' Price Index, the Whole¬
sale Price Index, and the Daily
Index
of
traded
Commodities
28
daily in spot markets and on or¬
ganized exchanges. After termina¬
tion of price control in 1946, all
three surged to new highs. The
Consumer
index
went
30%,
up
only 5% in the post¬
period. The Wholesale index
war
50%, sagged back about
to its low. The Daily Index
up
had
81%,
declined
and
increase of
peak
post-war
a
36%
its
to
post-war peak low.
Today
almost
and
their
indexes
post-war
stand
highs,
headed
are
words,
three
all
at
we
are
inflation in
a
higher. In other
experiencing rapid
highly inflated price
structure.
the
dollar
Harbor
low
a
Was J)0C
about
worth
the
about
was
about
to
600,
570.
the
at
dat<£/Since
value
lied
ijt in
different way:
ol;.'the pre-World War
value
II
Pearl
war
its
570. It ral¬
is
and
The
be
imposed shortly.
experience prior to passage
the
Price
Control
Act
in
be
kept
dustry's
in
help,
bounds
with
with
in¬
without
or
law. Some effort at voluntary con¬
trols over basic materials—steel,
that
no
fiscal
be committed
Results
proved
of
we
the
last
finance
can
increases that the productive
any
machine
Two
important
considerations
substantially determine the
inflationary effect of the expen¬
ditures.
First
which
is
World
War
the
—
percentage
financed
by taxes.
In
45% of the $391
II,
billion
spent
tion.
Second—the
raised by taxa¬
was
lumber, etc.—may be re¬
peated, but the smaller available
extra supply will make the task
much
more
trol
difficult.
greatest
of
demand
for
of
this
In
year
of
bond
will be necessary.
the
re¬
bil¬
several
refinancing
If bank credit
is used, then a highly inflationary
injection
will
stream of
spending.
sold
of
power
If
put
into
savers,
are
some
purchasing
will be relieved.
knew
one
refinancing
the
answer
problem,
guess
much
about
the
more
The
he
could
intelligently
prospects for
prices derives today from
and particularly for
food
will
price
be
stabilization.
lacking,
if
the
But
it
legislation
is
presently
enacted.
commodities below parity or
June
Middle
East
and
Russia's per¬
on
first
experiments
in
the
Point Four Program.
exception
of
While
tax.
of
new
fairly
runaway
taxation
clear,
the
with
is
to
the
profits
excess
there
understand¬
able pressure in
Congress for im¬
adoption of an
excess
mediate
profits tax, the Treasury technical
has recognized serious diffi¬
staff
culties
in
selecting a base, or
bases, which would be equitable.
At present, decision seems likely
to be postponed until next year.
Undoubtedly,
there
too,
will
be
recommendation for widening
the
of excise taxes, but it is to
range
hoped
that the careful
ination of the
cise
exam¬
hang-over ex¬
by the National Com¬
taxes
war
mittee for the Repeal of Wartime
Excise
Taxes
will
prevent undue
hardship
Foreign Help
One
in closer concert.
All
of
things
is well
to
keep
to
pattern of performance
own
The writer
once
if
a
there
is
turned.
time,
the
said
book
"It seems an
of
experience,
has to be read and
Our best hope is that the
will
be
turned
that
and
the
thin
faster
happ^
same
ending is still there."
Second Quarter Production At New Peak
Commerce Department estimates output of goods and services
at annual rate of $270
billion, higher by $3 billion than pre¬
The
high mark reached in last quarter in 1948.
Office
of
Business
Eco¬
nomics, U. S. Department of Com¬
announced
merce
Aug.
on
gross national product in
ond quarter of
nual
rate
This
figure
of
of
1950
was
nearly
at
a
sec¬
an
an¬
signs point toward
a wider
military front, and the pos¬
sibility
of
a
non - Communist
allied
United Nations.
Government purchases of goocU'i
and
services
maintained
were
about the first quarter
at
annual rate
The prospective
expenditures,
billion.
of
trend
nation's
position la
relationship to this country.
$270 billion.
of $41V2
total market
the
for
the
15
the
ment of their financial
Federal
of
however, was of
goods and services was not only
sharply upward by
$7 billion higher than in the pre¬
velopments.
vious quarter but surpassed the
Salient features
previous high mark of $267 billion,
income data now
reached in the last quarter of 1948.
output
altered
course
the Korean de¬
national
of the
available
were
follows:
as
The second quarter advance was
of the upswing in
activity already under
earlier this year. It did not
way
duced
the
by
new
pressures
intro¬
nation to put down
our
the aggression in Korea, which be¬
only
gan
few
a
days
before
the
receipts of
—
income
The
from all sources
persons
—declined from
an
annual rate oJ'
billion in the first quarter
$216V2
to
$215 billion in the second, due
to concentration of the bulk of the
Service
National
Life
Insurance
payments to veterans in
dividend
close of the period.
income
Personal
extension
an
the first quarter. Personal income
Developments among major com¬
exclusive
of
these
special pay¬
of gross national product
ments rose from $208 billion to
ponents
were
as
follows:
$213 billion.
Personal
tures
rose
consumption
to
expendi¬
$184 Va billion at
sea¬
sonally adjusted annual rates,
compared with $182V2 billion
as
in
the first quarter and $1801/2 billion
at the end of last year.
rise
types
are
it
organizing mobilization, each
challenge has to be met by those
charged
with
responsibility in
be
this
to
inflation.
come
dim,
of
pages
of
pressure
waf;
in mind that in the American way
iphery are doubtless in the mak¬
ing now. Some of these plans will
the
If bonds
individual
to
the
be
was
creases,
The latest
accompanied by price in¬
however,
and
reflected
little change in
physical volume.
Principal factors stimulating ad¬
in consumer purchases this
year have been the higher incomes
generated by expanding economic
vances
activity and the receipt by veter¬
of substantial National Service
ans
Life
as
Insurance
liberal
dividends,
extension
of
well
as
Wages
salaries
and
advanced
strongly
to
add
approximately
$5 billion to the personal income
This gain—the result mainly
flow.
also
work
of increased employment, but
of
lengthened
average
and
slightly higher
a
week
wage,
rates—brought second quarter pay
rolls to a new high rate of $140
billion.
Most
industries
private
participated in the upward move¬
ment,
with
in
nounced
pro¬
con¬
mining.
Govern¬
rolls
showed
little
and
struction,
ment
advances more
manufacturing,
pay
change.
consumer
Total
credit.
The second quarter increase was
proprietors' and rental in¬
come, at a rate
of $41V2 billion an¬
about the same as in
the March quarter.
A decline in
goods—mainly clothing and food—
the
farm
sector—stemming priwith consumer expenditures
for
marily from a more-than-seasonal
services also contributing. Among
drop in the volume of crops mar¬
the durable goods, which contin¬
keted—held down the total.
Ail
ued
to
absorb an
extraordinary
major
components
of
nonfarm
portion of the consumer's expen¬
business and professional entre¬
diture dollar, further increases in
preneurial earnings continued to.
automobile buying were offset by
rise. The flow of personal interest
some
slackening in purchases of
income and dividends was stable.
furniture
and
household
equip¬
The unusually large decline irx
ment.
government transfer payments—•
Gross private domestic invest¬ from an annual rate of $21 billion
ment moved forward by more than
in the first quarter to $14 billion
$5 billion in the second quarter, in the second—was largely a resu.lt
to an annual rate of $46 billion.
of the tapering-off and approach¬
concentrated
The
most
.the
in
nondurable
noteworthy element in
was a $2 billion ex¬
nually,
was
of
completion
ing
the
National
this movement
Service Life Insurance refunds.
drop in unemployment compensa¬
raise their sights.
in business purchases of
durable equipment, which had al¬
ready
recovered moderately in
the first
quarter after declining
throughout last year.
Inventory
accumulation, at the rate of $3V2
billion
annually, was $2 billion
England will probably spend 10%
and France 8% of its national in¬
greater than in the first quarter.
Further extension of the residen¬
Observers feel
that
the $5
bil¬
lion-plus already scheduled for
the Military Aid Program is but
a
small beginning of such appro¬
priations.
There
other
will
A
countries
for
defense
that
West
such as
Germany seems
levels,
steel,
indi¬
cated.
In
gram
an
pansion
tial building boom
next year.
raising of the restrictions on
production
for
insistence
be
con¬
consumers,
the
Asiatic countries
reflect
becoming due.
dollars
is
come
vista
and each page
all
bonds
lion
more
program
Speculative
the
helping
economic
come
The
supply,
attention.
Purely
While
their
type of re¬
financing utilized for outstanding
mainder
stimulated
countries
able to do to date.
Argentina, Brazil
Mexico, which have been suf¬
fering from dollar shortages, will
improve their exchange positions.
Special and new methods of
value
create.
can
will
copper,
not
can
defense.
more
like
and
guide
1942
demonstrates that wholesale prices
can
Countries
abundant
an
material
raw
vious
budget for
There is
can
for
already
Plan
organized
any
any¬
States and its friends in the world
The Congress seems likely to for¬
bid price ceilings on agricultural
and the extra demands
of the
to what
as
present
no
the next year.
limit
now
future
America,
of
source
pro¬
for
counts
is
Staff
have
States,
South
present
in
hinge on (a) the methods of fi¬
nancing defense expenditure, (b)
the size of the outlay, and (c) the
relative success of selective price
the
considered
provide excessive drains this
there
of
etc.,
Marshall
Canada, England
and possibly other countries is not
out of question.
durable
will
thing seems clear:
this
emergency will bring the United
in
Chiefs
Civil¬
a
con¬
be
degree of
will
devaluation
The
Joint
United
occur.
to determination
be
To phrase
manpower
year,
thing,
sented
of
Committee
and
it will be difficult
to roll back prices to a June date.
As to
rollbacks, it would seem
(d)
planning and (b) industry plan¬
ning
in
the
emergency.
The
NSRB has given labor recognition
its
headed
are
over-all freeze
price structure is
urged
and
sary,
controls to
in
prices
seem
imminent, (c) selective price con¬
trols on scarce, allocated products
participation in (a) governmental
Policy,
the
controls
no
entire
the
ian
possibility of
in
goods, industrial
electrical equipment,
refriger¬
cutbacks
experience
war
watching
are
agreed that (a)
11%
The
tains power to
Rationing
toward
movement
went
Service
not
who
Those
other
when
than
Taxes and the Budget
If
for
and declined
Manpower
-
will
these
prevail.
iCvel
other
has1 sne?0<5ted
that
guarantee
no
and
and
can
of
goods
problems
still
is
there
partment of L^bor
is
and
Prices
autos
duction
gasoline
large
are
consumer
policy. The De¬
deferment classifications but there
of
entire structure of
industry
will
draft,
fast
be
resources
former
the
and
Prices and
will
we
the
on
to
hard
no
clothing
orders.
The
cutbacks
durable
machinery,
National Guard units.
more
As
Many
War II plants
to recapture.
rapidly. Expected, too, is the alert¬
in¬
or
creased producing facilities.
of the World
re¬
is
cantonments
being called more
are
price
organizations for ad¬
ministration and enforcement.
ators,
reservists
nation-wide
ration
and
At present, enlistments are not
proceeding at a fast enough pace,
so
wage
Prospective
sumers'
Canada,
which
has
munition
plants geared and tooled to U. S.
specifications, will receive U. S.
will receive much
consumer
Furthermore, both prices at re¬
and
rationing of consumer
ing placed are chiefly for greater
production of tested and accepted
material, of which one-fifth is for
entirely new weapons.
At
this
of
use
will
increased.
Universal
for
the
the
easily serve as a model, for other
European economic unions.
below
are
tail
Military Service.
proposal
the
sur¬
compound
increase difficulties.
arms
the
prices
prevent
Volatility
$35 billion expenditures, of which
$20 billion is new. Orders now be¬
vive
forbid
these supplies to halt increases.
goods
Selective Service: The difficulty
which
government-owned
when
percentage of skill.
of
industries
reserve
laws
of
pluses
gaining employment.
making heavy commit¬
ments for freight cars, pipe, tur¬
bines and heavy machinery.
Al¬
latter
free
are
impossible for cotton, wool, beef
cattle and hogs, which are above
parity.
Other
be
families, those businesses like
transportation, pipe lines, power,
etc., wnose expansion in capacity
are
oranges,
substantially, and any roll¬
back below June prices would be
Economic Mobilization
and
This
commodities,
many
to rise
on
33
(653)
vate domestic
Net foreign
will
arms
the ECA pro¬
redirected toward
ways,
be
production
Schumann
plan
program.
for
steel
The
may
in
negative
set
the
June
quarter
by
at
a
to
permitting foreign
to
effect
countries
further
as
a
improve¬
im¬
veterans*
notably in Penn¬
Bowers Increases Staff
(Special to The Financial
Col.
—
Bowers & Co., Cooper
Chhonicle)
Robert--
E.
Mahan
and
to
their
staff,
firm
in
Alfred
Wayne
K. Marron
representing
Nebraska.
D
Bldg., have
added Albert W. Aderhold,
about $2 billion at an annual rate,
whole
State
increased
DENVER,
amounting
the
sylvania.
added another
investment remained
reflecting
bonus payments,
investment.
balance
benefits,
proved business situation, was off¬
$1 billion to the rise in gross pri¬
stable
many
tion
A
the
34
The Commercial
(654)
and Financial Chronicle
•
Securities Now in
Alabama
July
Power
filed
28
Birmingham, Ala.
of 4.zU% preferred
Co.,
shares
64,000
ment effective Aug.
(par $100) to be offered in exchange for a like number
of
outstanding
Electric
Mich.
Co., No underwriter.
Alberta-Canatia
Oiis,
(Del.)
Inc.
Aug.
Inc., Detroit,
(8/22)
100,000 shares of common stock (par $1).
be filed by amendment.
Underwriter—J. G.
3 filed
Price—To
(9/1)
State¬
_
White &
Co., Inc., New York. Proceeds—To three selling
who own approximately 69% of the out¬
July 18 filed 1,000,000 snares of common stock (par 50
cents).
Price—$2.50 per share.
Underwriter—Thomas
stockholders
G. Wylie
standing shares.
Proceeds—For general funds.
Co., New York.
Allen
•
Organ Co., Allentown, Pa.
(9-1)
1,500 shares of 6%
(letter of notification)
ferred stock (par $100) and 750 shares of
July 19
common
stock
electronic
Office—8th
products.
and
Pittston
•
Diamond
Mining
Corp.
mon
stock.
—None.
Guardian
Co., New York. Proceeds—For explora¬
in MurfreesPublicly offered on Aug. 10.
tion and development of property operated
&
Fire
•
general
corporate
purposes.
Natural
Gas
Co.,
&
(8/24)
rate of one new share for each 13 shares of Central
basis of one
new
tric
Price—To
share for
each 10 shares held;
filed
be
by
investments
increase
share.
Underwriter—None.
per
To
in
stock
of
Proceeds—
Michigan Consoli¬
dated Gas Co. and
Producers,
American
Oil
(8/21-25)
Inc.
June
2
stock (par one cent).
common
share. Underwriter
Y.
Proceeds—For
drilling well, equipment and working capital.
Office—
5 Beekman Street, New York 7, N. Y.
—S.
W.
Gordon
American
Price—$1
Co.,
per
Brooklyn,
Patent
& Trade-Mark
Bureau
William
Street,
New York 5,
Washington, D.*C.
and
share of
one
class
B
stock.
Price—$44.50 per unit. Underwriter—Emory S. Warren
& Co., Washington, D. C.
Proceeds—For general funds.
Office—1707 Eye St., N. W., Washington, D. C.
of
Citizens Telephone Co.,
Decatur, Ind.
(letter of notification) 3,000 shares of 4%%
preferred stock, non-convertible. Price—At par ($100
Washington, D. C., Inc.
Aug. 7 (letter of notification) 49,000 shares of common
stock.
Price—At par ($1 par share).
Underwriter—
None.
Proceeds—For publishing three books and a
monthly newspaper and for working capital.
Office—
62
class A stock
shares of
N.
Credit Corp.,
(letter of notification) 3,000 shares 'Of- class A
stock (par $12.50) and 1,000 shares of class B
stock (par 25 cents), to be sold in units of three
common
Underwriter—None.
share).
additions
conversion
and
dial
to
Proceeds—For plant
operations. Office—
N. Y.
City Stores Co.
July 17 filed 149,317 shares of common stock (par $5)
offered in exchange for common stock (par $10) of Op-
Underwriters—Gearhart,
penheim, Collins & Co., Inc., and for the 4%% convert¬
ible preferred stock (par $50) and common stock (par
City.
$1)
Kinnard & Otis, New York
Proceeds—For additional working capital. Office
—Fifth and Cornish Streets, No. Little Rock, Ark.
and
45,891
shares
of
share
bii Id
a
gas
outstanding
transmission
line.
Office—105
Hutton
each
two
expires
&
Co.,
shares
common
Sept.
on
New
18.
York.
of
Dealer-
Statement
16.
•
Columbian
Enameling & Stamping Co.
2,385 shares of common
stock.
Underwriter—Cohu & Co., New York.
Proceeds
—To selling stockholders.
Aug.
•
(letter of notification)
3
Commonwealth
Investment
Co.,
San
Francisco,
California
N.
Aug. 10 filed 4,000,000 shares of
NASD
stock
(par $3)
in exchange for shares of Bendix Home
Appli¬
Inc., at the rate of two Avco shares for each Ben¬
chare.
Offer expires Aug. 28.
Dealer-Managers—
Shares
to
be
stock (par $1).
purchased through
Commonwealth
Springfield Drive-In Theatre
Corp.
10 (letter of notification) $100,000 of debentures
and 1,000 shares of common stock (par $1) to be sold in
units of one $100 debenture and one share of stock. Price
July
•
per
stock
;
(letter of notification)
•
|
Private Wires
to
all
offices
i
;
upon
common
exercise of option by
Price—$5
per
share.
Pro-
tent
Underwriter—National
interest.
Proceeds—To
pay
In¬
expenses
prosecuting infringement actions under pa¬
commercialization of patent. Office—50
for
and
Broadway, New York, N. Y.
Credit
Finance
Services, Inc., Akron, O.
Aug. 4 (letter of notification) $300,000 of 2% to 4% cer¬
Price—$50 and up per unit. Un¬
tificates of investment.
derwriter—None.
Proceeds—For working
capital. Office
Main Street, Akron, O.
—316 South
Mines, Inc., N. Y. City
May 24 filed 400,000 shares of common stock (par 50
cents). Underwriter—Max Wolberg, a director of com¬
Price—$1 per share. Proceeds—For development
mining and shipment of ore.
pany.
of tonnage and
Crown
Kansas City, Mo.
Drug Co.,
July 31 (letter of notification) $300,000 of 4lz% convert¬
ible debenture notes (in denominations of $60, $100, $500
and
$1,000) to common stockholders. Price—At par. Un¬
Roger W. Babson, Wellesley Hills, Mass.;
—
Witschner, Kansas City, Mo.; and Statistics Organ¬
ization, Inc., Babson Park, Mass. Proceeds — To retire
short term banking debt and for working capital.
Detroit Hardware
Manufacturing Co.
Aug. 4 (letter of notification) 100,000 shares of common
stock
(par $1).
Price—$3 per share.
Underwriter—
C. G. MacDonald & Co., Detroit.
Proceeds—To expand
facilities
and
for
working capital.
Office—1320 Mt.
Elliott Avenue,
Detroit, Mich.
Diesel
Inc.,
Power,
Pittsburgh, Pa.
,
July 28 (letter of notification) 25,000 shares of common
stock to be offered only to common stockholders during
a
100 shares each. Price—At par
10-day period, up to
share). Underwriter—Graham & Co.. Pittsburgh,
Proceeds—To expand production and for working
per
Office—601
capital.
Granite Bldg., 6th Ave. and Wood
St., Pittsburgh 22, Pa.
•
•
Doman
Aug.
Helicopters, Inc.
(letter of notification)
10
Price—At
stock.
the
market
Underwriter—None.
share).
3,000 shares of capital
(approximately $2 per
Proceeds—To Glidden S.
Doman, President, the selling stockholder.
•
Drackett
Co., Cincinnati, Ohio
(letter of notification) 15,191 shares of common
(par $1), to be offered to employees of1 the com¬
Aug. 8
stock
Price—$4.50 per share. Underwriter—None. Pro¬
the Estate of Harry R. Drackett. deceased-.
Office—5020
Spring Grove Avenue, Cincinnati, Ohio.
Uranium Mines, Inc.
(letter of notification) 400,000 shares of com¬
stock (par 25 cents) and $150,000 of 8% produc-
tion notes, of which 100,000 shares of stock
delivered
to
for
Continental
its
mining
are to be
Mining & Milling Co. in part
interests and machinery, and
the remaining 300,000 shares, plus the notes,
are
offered
shares
in
units
Duquesne
of
one
$500
Light Co.
(8/28)
July 25 filed $12,000,000 first mortgage bonds due 1980.
Underwriters—To be determined by competitive bidding.
Probable bidders for bonds: Halsey, Stuart & Co. Inc.;
Loeb & Co., Union Securities Corp. and A. C.
Co. (jointly); Harriman Ripley & Co., Inc.;
White, Weld & Co.; Drexel & Co. and Equitable Secur¬
ities Corp. (jointly); First Boston Corp.; Glore, Forgan
& Co.
Bids—Expected at 11 a.m. (EDT) 011 Aug. 28
Proceeds—To repay bank loans and finance construction.
Kuhn,
Allyn
&
Eastern
note
and
1,000
to be
of
Stainless
Steel
Corp.
100,000 shares of capital stock (par $5) to
be offered to stockholders of record Aug. 10 at the rate of
one
7
filed
share for each three held, with
new
oversubscription
privilege; rights are to expire Aug. 25. Underwriter—
J. Arthur Warner & Co. Inc., New York.
Price—$12
per
share.
ing capital.
•
Echo Bay
July 31
stock.
T.
Lead-Silver Mines, Inc.
(letter of notification) 500,000 shares of capital
Price—10 cents per share.
Underwriter—Henry
Spokane, Wash.
Proceeds—To develop
Address—Box 988, Coeur D'Alene, Idaho.
Born,
body.
•
Proceeds—To pay bank loans and for work¬
Statement effective Aug. 10.
ore
Elkhorn Mining Co.
Aug.
8
of notification) 10,000 shares of capital
cents). Price—50 cents per share. Under¬
Proceeds—To develop mining properties.
(letter
stock (par 10
7
payment
Cleveland
1,000 shares of
Consolidated
mon
Chicago
(par $1), to be issued
Hugh F. Colvin, Treasurer.
ceeds—For working capital.
Aug.
Pittsburgh
unit.
Consolidated Engineering Corp., Pasadena, Cal.
Aug. 11
San Francisco
in
incurred
June
Underwriter—None. Proceeds—To re¬
imburse George W. Fuller, Kansas City, Mo., for expenses
in completing the Sunset Drive-In Theatre, Springfield,
Mo. Office—215 W. 18th St., Kansas City, Mo.
Boston
and
100
common
members.
—$101
Philadelphia
Price—At
ceeds—To
(letter of notification) 4,000 shares of common
(par $1), to be offered to employees. Price—$25
share. Proceeds—To benefit employees for services.
Office—2930 N. Market St., St. Louis, Mo.
ance *,
New York.
notification) $250,000 of 6% 5-year
1, 1950 in multiples of $1,000.
vestors Service, New York.
pany.
per
offered
dix
N. Y.
Refrigeration Corp.,
(letter of
stock
Manufacturing Corp., N. Y. City
common
for
Offer
Underwriter—None.
July 14 filed 1,500,000 shares of
Co.,
July 27
Boulder, Tulsa, Okla.
Avco
&
Coca-Cola Bottling Co. of St. Louis.
Natural Gas Co., Tulsa, Okla.
(letter of notification) 2,500 shares of common
$100 per share. No underwriter. Proceeds to
natural
share
E.
effective Aug.
Associated
at
one
Simon.
Manager—W.
reached.
M irch 14
and
Franklin
$6 preferred;
(b) the carrying forward of the company's construc¬
tion program. Bids—Received by company up to noon
(EDT) on June 19, but rejected. Only one bid was made
of $100,003 per share, with a $4.95 dividend from Lehman
Brothers, Equitable Securities Corp. and White, Weld &
Co. (jointly).
Statement effective June 12. No further
stock
Simon
Inc., at the following
IV2 shares for each Oppenheim, Collins common
two shares for each Franklin Simon preferred
ratios:
and
decision
Franklin
of
share;
&
Light Co.
May 23 filed 155,000 shares of cumulative preferred stock
(par $100). Proceeds—To be applitd to (a) redemption
on
Aug. 1, 1950, at $110 per share plus dividend ac¬
cruals, of all the 47,609 shares of outstanding $7 pre¬
ferred
Continental
Pa.
Radio & Television, Inc., North Little
Rock, Ark.
June 16 (letter of notification) 301,686 shares of com¬
mon
stock (par 10 cents).
Price—75 cents per share.
Power
Stanley & Co. Price—Expected to be not less than $33
per share.
Proceeds—For construction. Offering—Post¬
poned.
($1
240 W. Monroe St., Decatur, Ind.
American
Arkansas
named in an amendment,
Five months ago an offering
454,457 shares of common stock to common stockhold¬
ers
was
underwritten by a group headed by Morgan
be
01
April 27
per
(no par)
holders at the rate of one new
10 held, with an oversubscription privi¬
H. J.
Citizens
Aug. 8 (letter of notification) 290,000 shares of common
Mich.
Co., Jackson,
along with offering price.
derwriters
graph Co.
Milwaukee Gas Light Co.
•
filed
be
Elec¬
held; rights expire a bout-.Sept. 20.
by amendment. Dealer-Managers—
Paine, Webber, Jackson & Curtis and Stoned Webster
Securities Corp., New York.
Proceeds—To pay unse¬
cured
note held by
International Telephorig*5& Tele¬
rights to expire Sept. 14. Price—To
amendment (Dropoced maximum offering
price $24.25
stock
common
Salt Lake
present
each
Cristina
the parent, of record about- Aug; 25, at the
Gas Co.,
Power
Underwriter—To
lege.
(8/25)
Lincoln, Neb.
Aug. 2 filed 97,000 shares of common stock (par $10) to
be offered to common stockholders of Central Electric
Aug. 4 filed 334,934 shares of common stock (no par), of
which 304,486 shares are to be offered to common stock¬
holders of record Aug. 24 on
,
.
per
Central Telephone Co.,
Business—
New York
Temporarily postponed.
(par
$35
Pro¬
Casualty insurance. Statement effective July 26.
American
stock (par $1).
amendment. Underwriter—Dillon,
Proceeds—For geological and drilling
$100).
Price—At the market (from $34.50
share).
Underwriters—A. M, Kidder & Co.
and Merrill Lynch; Pierce, Fenner & Beane.- Proceeds
—To two selling stockholders.
ing offered to stockholders of record July 25 at rate of
ceeds—For
common
held by
income notes dated June
Capital Transit Co., Washington, D. C.
10 (letter of notiiicaaon) 2,u00 shares of common
to
for
snare
Aug.
stock
Price—At par.
Co. Inc.
&
Read
Insurance
share for each three held.
shares of
exchange for sim¬
499,903 shares of common stock
offered
be
to
filed
23
July 28
Superior Oil of California, Ltd.
ISSUE
Office—522 Felt Building,
working caiptal.
City, Utah.
Office—2343
capital.
Building, Detroit 26, Mich.
operations in Canada.
Co., Chicago
June 28 filed 100,000 shares of capital stock (par $5) be¬
new
per
Price—To be filed by
this week.
one
150,000 shares of com¬
snare). Underwriter
($1
working
Proceeds—For
June 27 filed 2,150,000
Casualty Co.,
Motorists
Price—At par
Canadian
Orlando, Fla.
July 21 (letter of notification) 11,100 shares of common
stock (par $10).
Price—$27 per share. Underwriter—
Guardian Credit Corp., Orlando. Proceeds—For working
capital. Office—American Bldg., Orlando, Fla. Expected
American
Inc., Detroit, Mich.
(letter of notification)
10
W. MacDonald &
American
selling
the
President,
Dardi,
Enterprises,
Brewery
Aug
July 28 (letter of notification) 209.000 shares of common
stock.
Price—At par ($1 per share).
Underwriter—F.
boro, Ark.
D.
ADDITIONS
notes and shares of Continental
Consumers
stockholder.
Streets,
Allentown, Pa.
American
Virgil
Proceeds—To
1950
tnem, on an equal lace value basis. An additional $41,000 of production notes and 82,000 shares of common
stock will be sold to the public at $500 per unit. Under¬
writer—None.
Proceeds—For
mine
development and
June
'v.
8 (letter of notification) 15„00Q shares of-capital
stock. Price—At market (approximately $2.75 per^jiare).
Underwriter—First California Corp., San Francisco, Cal.
Price—At par.
Underwriter—None.
Pro¬
ceeds—For expansion of plant and development of other
stock to unitholders of Continental in
Business—Supermarket.
Holdings Corp.
Aug.
pre¬
$100).
(par
Blair
Thursday, August 17,
SINCE PREVIOUS
ilar production
Big Bear Markets of Michigan,
preferred snares of Birmingham
Expected about Aug. 23.
4.20%
Lehman Brothers.
8.
.
.
INDICATES
Registration
Emanuel, Deetjen & Co. and
stock
.
writer—None.
Office—Boulder Bank
Bldg., Boulder, Mont.
Equipment Finance Corp., Chicago, III.
Aug. 7 filed 10,000 shares of 4% cumulative preferred
stock, to be offered to officers and employees of this
corporation and of Curtis Candy Co., parent. Price—At
par
($100 per share). Underwriter—None. Proceeds-—
To acquire equipment and real estate for its parent.'
Volume 172
Number 4934
.
.
.
The Commercial and Financial Chronicle
(655)
Fedders-Quigan Corp.
Interstate
June 21 filed 103,402 shares of series A cumulative con¬
vertible preferred stock (par
$50) to be offered to com¬
mon
stockholders on basis of one preferred share for
each 12 shares held. Price—To be filed
June
$5).
to complete purchase of
and for additional
a
new
Da
July
Services
Finance
(letter
convertible
of
preferred
stock,
series
for par,
initially
Granite City Steel Co
Common
offered
Tele-Tone Radio Corp
Pfd. & Common
6%
and
C.
u.
for
Kansas
pre¬
preferred
Aug. 18.
Price—
Underwriter—Mackall & Coe,
Pacific
City
noon
expire
Proceeds—To
working
5%
one
August
to
or
rights
($100 per share).
Wasnmgion.
stock
held;
preferred
offered
was
stockholders of record July 28 on basis of
share fo reach eight shares of 6%
At par
be
redeem
6%
Southern
(EDT)
American
Natural
Gj|s
common
Standard Coil
August 29,
Indiana
Florala
Inc.,
Allen
Wilkes-Barre,
Organ Co
Pfd. & Common
selling stockholder.
ize plant, lines and
Frontier
cents)
to be offered in
September
units of
Bonds
1950
-Common
Bonds
New
19,
Hampshire Electric Co
September
Bonds
27,
1950
Delaware Power & Light Co
October
Utah
Bonds
Shoe
filed
a
(par $1)
General
of
a
Bonds
California, Ltd.-Common
Common
Water
Common
Heater
Co., Inc
Co
Common
Rochester
Corp
Safeway Stores, Inc..
United
States
common
-Common
Pfd. &
Com.
Common
Plywood
Corp
Preferred
eynolds
&
Co., New York. Proceeds—For benefit of
ulian North Cheatham,
Winnetka, 111., the selling stockolder. To be placed privately.
Globe
Hill
Mining Co., Colorado Springs, Colo.
ray 26 (letter of notification) 5,885,000 shares of comstock.
on
Price—At par (one cent per share).
Under-
riters—George C. Carroll Co., Denver; Inter-Mountain
hares, Inc., Denver; and M. Av Cleek, Spokane, Wash,
roceeds—For mining equipment.
Granite City
(III.) Steel Co. (8/22)
uly 31 filed'99,446 shares of common stock (no par) to
e
offered common stockholders of record
Aug. 22 on
asis of
ill
one
expire
ent.
share for each four shares held; rights
Sept. 5.
Price—To be filed by amend-
new
on
Underwriter—Merrill
New
eane,
York.
Lynch,
Proceeds
—
Pierce,
For
Fenner
general
&
corporate
&
Co.
Inc.; First Boston Corp.; Harriman Ripley & Co.,
Blyth & Co., Inc. (jointly); Kidder, Peabody
Co.; Lehman Brothers and Bear, Stearns & Co. (joint¬
&
and
Mines
Proceeds—To redeem $9,440,000 outstanding bonds.
Offering—Expected late this month.
Industrial
Stamping & Mfg. Co.
July 6 filed (by amendment) $500,000 of first mortgage
5% bonds due 1967 (with warrants to purchase 60,000
shares of common stock) and 400,000 shares of common
stock (par $1).
Of the latter, 272,000 shares will be
publicly offered and 28,000 shares will be offered to cer¬
tain officers and directors of the
company; 60,000 shares
be reserved for stock options; and 40,000 shares to
to
be
of
optioned to the underwriter of the bonds. Price—
bonds, 100; and of stock to public and employees, $1
share.
Underwriters—For
bonds, P. W. Brooks &
Simonds & Co. Proceeds—
balance added
used to reduce
bank loans.
Statement—Effective Aug. 9.
Offering—
Bonds being offered today (Aug. 17).
per
Co., Inc.; for stock, Baker,
To pay mortgage and certain debts, and
to working capital, part of which will be
Corp.,
Ltd.,
British Columbia,
16
tock
filed
100,000 shares of common non-assessable
50c). Price—35c per share.
Underwriter—
(par
"one.
Proceeds—To
orking caoital.
Idaho
buy
mining
machinery
Statement effective May 10.
and
8
10,000 shares of
common
tock.
Price—At market (about $1.40 per share). Underw¬
riter—E. F. Hutton & Co., San Francisco.
Proceeds—
o
a
,
Gas
28 filed
&
due Sept. 1. 1980.
ompetitive
Water
Co., Inc.
bidding.
of first mortgage bonds, series
Underwriter—To be determined by
Probable
bidders:
Halsey,
Stuart
Middle South
Higbie
loans and for
&
Co.,
new
Detroit.
construction.
Utilities, Inc.
June 1 filed 400,000 shares of common stock
(no par) to
be offered to preferred stockholders of three subsidiaries
—Arkansas Power & Light Co., Louisiana Power & Light
Co.
and
Mississippi Power & Light Co. UnderwriterSecurities Corp will serve as "dealer-man¬
ager." (See also listings of Arkansas, Louisiana and
Mississippi companies elsewhere in these columns.)
Equitable
Middlesex Water Co.,
9
stock
on
(letter
offered
Newark,
of notification)
to
common
one-for-five
a
Co.
basis.
5,200
N. J.
shares
stockholders
at
of
common
$50 per share
Underwriter—Clark, Dodge &
Proceeds—To pay notes and for additional working
capital.
Indefinitely postponed.
Laboratories, Inc., Elkhart, Ind.
(letter of notification) 2,500 shares of common
stock (no par). Price—$16.50 per share. Underwriter—
Cohu & Co., New York City. Proceeds—To two selling
stockholders.
Miller
March
6
Offering date indefinite.
(Walter
(letter
of
..
■■
R.)
Co., Inc.
notification) 1,000
shares
of
cumulative preferred stock at par ($100 per share).
6%
Un¬
derwriter—George D. B. Bonbright & Co., Binghamton,
N.
Y.
Proceeds—To assist in acquisition of
1216 shares
of company's common stock.
Mission Appliance Corp., Hawthorne, Calif.
July 24 filed 50,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($20 per share). Under¬
writer—Lester & Co., Los Angeles, Calif. Proceeds—To
retire bank loans and install machinery and equipment
in a proposed new plant to be located east of the
Rocky
Mountains.
Business—Manufacturer of gas and electric
water and space heaters.
Mississippi Power & Light Co.
May 23 filed 85,000 shares of cumulative preferred stock
(par 100). Proceeds—To be used to redeem at $110 per
share plus dividends, the outstanding 44,476 shares of $6
preferred stock and for construction and other corpo¬
as
mo
Bids—Received by company
June 19 but rejected. Four bids
purposes.
on
up
to
were
noon
made
follows:
a
Union Securities Corp., $100.10 per share
$4.80 dividend; Lehman Brothers, $100,551 with
$4.85 div.; W. C. Langley & Co. and First Boston Corp.
(jointly), $100.30 with a $4.90 dividend; and Blyth & Co.,
Inc., Equitable Securities Corp
Shields & Co., White,
Weld & Co. and Kidder, Peabody & Co. (jointly), $100.19
,
PRINTING CO., Inc.'
80 SOUTH ST; NEW YORK 7, AiJ.
(8/29)
$9,500,000
Underwriter—Bradley
par.
Proceeds—To pay bank
a
selling stockholder.
Indiana
uly
•
Michigan Abrasive Co., Detroit, Mich.
Aug. 7 (leuer of notification) 60,000 shares of 6% cumu¬
lative convertible preferred stock (par $5) and
150,000
shares of common stock (par
$1), the latter to be re¬
served for conversion of preferred.
Price—Of preferred,
with
SIR VICE
SINCE
Maryland Mines Corp., San Francisco,
(letter of notification)
Underwriter—Johnson, Lane, Space & Co., Inc. Proceeds
(EDT)
CONFIDENTIAL
for
California
ug.
.
Merry Brothers Brick & Tile Co., Augusta, Ga.
June 15 (letter of notification) 1,250 shares of 5% cumu¬
lative preferred stock.
Price—At par ($100 per share).
rate
Canada
eb.
Allen & Co., Inc., Los Angeles, Calif. Proceeds—To
buy land, build a plant and equip it to produce so-called
"impact" plastics. Office—244 S. Pine St., Newhall, Calif.
ly).
urposes.
Granville
Chemical of California, Newhall, Calif.
May 31 (letter of notification) 282,250 shares of capital
stock. Price—At par ($1 per
share). Underwriter—Floyd
Miles
Inc.
Georgia-Pacific Plywood & Lumber Co.
uly 27 (letter of notification) 4,000 shares of common
tock
(par $1).
Price—$14 per share.
Underwriter—
reached.
Loven
June 23
n
uly 25.
dividend; Blyth & Co., Inc., and Equitable Securities
Corp. (jointly), $100.10 with a $4.65 dividend; and W. C.
Langley & Co. and First Boston Corp. (jointly), $100.30
with a $5.80 dividend. Statement effective June 12. No
Pfd.
Common
basis
exchange for outstanding preferred stock of W. L
ouglas Shoe Co. No underwriter. Statement effective
Bids—Received by company up to noon (EDT) on June
19, but rejected.
Three bids were made as follows:
Union Securities Corp., $100.40 per share with a
$4.65
Feb.
Telephone
Southern Co.
share-for-share
Common
Public Service Co. of Colorado_______Debs. &
Temporarily
32,885 shares of
on
Radiant
Middlesex
Corp., Nashville, Tenn.
maximum
Louisiana Power & Light Co.
May 23 filed 90,000 shares of preferred stock (par $100).
Proceeds—To be used to redeem, at $110 per shart plus
dividend accruals, the 59,422 shares of
outstanding $6
preferred stock, and for construction and other purposes.
at
Co
Northwestern Public Service Co.__
Co., Inc.
common stock
(par 250)
Proceeds—For plant and warehouse,
to be offered
Light
1950
Fedders-Quigan Corp.
170,000 shares of
General
&
9,
Consumers Power Co
Louisville, Ky.
dvertising research, working capital, etc.
Dostponed. Amendment may be filed.
New York.
OFFERINGS TEMPORARILY POSTPONED
None. Proceeds—For working capital. Office—334 East
share.
Power
Canadian Superior Oil of
General Plywood Corp.,
Louisville, Ky.
uly 17 (letter of notification) 101,500 shares of common
tock (par 50 cents).
Price—$2.11 per share. Underwriter
per
Proceeds—For working capital and general cor¬
porate purposes. Office—630 Fifth Avenue, New York 20,
Ernest B. Merry, Jr., Vice-President and General
Manager, the selling stockholder.
1950
Aviation
3 filed
—None.
—To
one
Equipment Corp., N. Y.
Aug. 9 (letter of notification) 60,000 snares of common
tock (par SI).
Price—$1.25 per share.
Underwriter—
ohn C. Kahn Co., Washington, D. C.
Proceeds—For
working capital. Office—2 East End Avenue, New York
1,- N. Y.
30
12,
September
acilities and equipment.
General Radiant Heater
(N. Y.)
(letter of notification) 300,000 shares of capital
(par 10 cents). Price—$1 per share. Underwriter
A.
1950
Virginia Electric & Power Co
common shares.
Price—$101 per unit.
Underwriter—George Patton & Co., Portland, Ore. Pro¬
ceeds—To pay off
mortgages and for additions, plant
General
11,
Utah Power & Light Co
Sherwood, Ore.
preferred and ten
rice—$3
-Common
Tennessee Gas Transmission Co
other telephone facilities.
Leather Co.,
(par 20
roadway.
_-Debentures
September
cumu¬
Leigh Foods, Inc.
further decision
1950
Vulcan Detinning Co
July 8 (letter of notification) 1,000 shares of 6% cumula¬
tive preferred stock
(par $100) and 10,000 shares of com¬
stock
7,
Plantation Pipe Line Co
preferred stock.
Price—At par ($25 per share).
Underwriter—None. Proceeds—To extend and modern¬
une
Common
September
lative
tock
1950
(Ala.)
Telephone Co.
June 29 (letter of notification) 1,200 shares of 4%
ay
1,
Bonds
(letter of notification)
Proceeds—To
•
1950
Co., Inc
September
Pa.
8,965 shares of common
stock (par 50 cents).
Price—At market. UnderwriterHoward O'Connor, 302 Cliff Avenue,
Pelham, N. Y.
mon
Bonds
Common
Alberta-Canada Oils, Inc.-
Fleetwood-Airflow,
19
Gas & Water
Pennsylvania Ave.
Wilkes-Barre, Pa.
July
1950
stock¬
per share to stockholders and $1.25
Underwriter—None. Proceeds—For working
capital, remaining $28,000 being offered to six creditors
Office—421 No.
28,
Common
Co.®; a.m. (EDT)
ProduS Co., Inc
Price—$1
of debt.
25, 1950
Duquesne Light
public.
in payment
Common
Augiilt
Fleetwood Airflow,
Inc., Wilkes-Barre/ Pa.
April 20 (letter of notification) 79,050 shares of common
capital.
June 30
1950
Co
Central
23
stock
Telephone
,
(par 50 cents) to be offered first to
24,
1157
—
Kaye-Halbert Corp., Culver City, Calif.
July 28 filed 100,000 shares of class A common stock
(par $1). Price—$5 per share. Underwriter—Sills, Fairman &
Harris, Inc., Chicago, 111. Proceeds—For working
Common
Augq|t
(M.
Central
—
to
Equip. Trust Ctfs.
f,td
Petroleums,
preferred
Springfield Corp., Springfield, Mass.
May 29 (letter of notification) 5,471 shares of common
stock.
Price—$15 per share. Underwriter
Springfield
Mortgage Corp., Springfield 3, Mass. Proceeds — For
working capital.
holders.
Ry.
VAugust
caiptal.
1950
i.__
First
stock
23,
Office
Engineering Works, Ltd., Lihue, Hawaii
(letter of notification) 98,000 shares of com¬
(par $1).
Price—$1.10 per share.
Under¬
writer—Ross & Co., Box
2665, Honolulu, T. H. Proceeds
—For working capital. Co.'s Address—Box
1589, Lihue,
T. H.
Common
5%
Underwriter—None. Proceeds
capital.
stock
mon
Big Bear Markets of Michigan, Inc
Iowa
Kauai
1950
of
ferred
stock
22,
to
B,
in exchange, par
for
Unexchanged 5% preferred stock
common
Common
shares
3,000
working
Ave., Dubuque, la.
Common
August
share.
per
increase
June
Corp., Washington,
notification)
Inc
Price—$25
—To
1950
Transvision, Inc.
Offering postponed.
C*
21
stock.
American Oil Producers,
plant at El Monte, Calif.,
working capital.
Federal
August 21,
Corp., Dubuque,
14
(letter of notification) 4,000 shares of common
stock (par $5) and
2,000 shares of B common stock (par
NEW ISSUE CALENDER
by amendment,
along with dividend rate. Underwriter—Smith, Barney
& Co., New York.
Proceeds—To pay promissory note,
Finance
35
y
Associate
PRESS, Ltd.
with
a
$4.90 dividend.
Statement effective June 12.
No
further decision reached.
Mt. Carmel (III.)
Public Utility Co.
July 24 (letter of notification) 3,000 shares of 4% pre¬
ferred stock being offered to common stockholders of
record July 31 in ratio of one preferred for each six
common held; rights to expire
Aug. 30. Price — At par
Continued
on
page
36
■
36
(65-3)
The Commercial and Financial Chronicle
Continued
($100
from
35
Underwriter—None.
share).
per
page
Proceeds—To
tire short-term notes and expand facilities. Office
Market St., Mt. Carmel, Illinois.
—
re¬
316
Hampshire Electric Co. (9/19)
Aug. 2 filed $3,600,000 of first mortgage sinking fund
bonds, series A, due 1975.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp.; Kidder, Pea-
body & Co., and White, Weld & Co. (jointly).
Proceeds
$1,880,000 first mortgage bonds, series A
B, due 1963, and (b) $1,250,000 of bank loans due
Dec. 31, 1952; and the balance for construction purposes.
Tennessee
Aug.
of
competitive
stock
common
units of
New
•
Rocky Mountain Textile Mills, Inc.
July 11 (letter of notification) $150,000 of 5% convert¬
ible sinking fund debentures, due 1960, and 15,000 shares
(par $10), to be sold separately or in
$1,000 debenture and 100 shares of stock.
one
Price—Separately, at
in units, at $2,000 each.
and
par,
Underwriters—Boettcher
Co.
&
and Peters, Writer &
Christensen, Inc., Denver, Col.
Proceeds—For new ma¬
chinery, equipment and working capital. May be placed
semi-privately.
•
Roller
Skating, Inc., Phoenix, Ariz.
(letter ol notification) 149,800 shares
10
bonds
filed
due
Gas
of
short-term
Texas
notes
Petroleum
Voting
At
Forrester A. Clark.
To
Norlina Oil
March 28 filed
Development Co., Washington, D. C.
shares of capital stock (no par.) To
600
offer only sufficient
shares to raise $1,000,000 at $5,000
per share. No underwriter. Proceeds to be used to ex¬
plore and develop oil and mineral leases.
fective May 22.
Northern
Illinois
Statement ef¬
Corp., Chicago
May 10 (letter of notification) up to 2,000 shares of
common stock
(no par) to be sold at the market price
(between $20 and $22 per share) by T. Howard Green,
a Vice-President of
the company.
Underwriter—Faroll
& Co., Rogers & Tracy and Shields & Co., Chicago.
Northwestern
Public
Service
be
offered
to
Co.,
common
Huron, S. D.
stock (par $3) to
present stockholders at rate of
one
share
each 10 held.
Underwriter—A. C. Allyn and Co., Inc.,
New York. Price—To be filed by amendment. Proceeds
—For construction expenditures. Postponed
temporarily.
or
Ohio Oil & Gas Co.
May 5
stock
(letter
of notification)
held
now
in
treasury.
Underwriter—None.
Watt
and
bank
To
shares of
1,100
common
Price—50 cents per share
be
offered
through Preston,
Proceeds—Toward repayment of
Schoyer.
loans.
Orchards
March
stock.
None.
Telephone Co., Orchards, Wash.
(letter of notification) 500 shares of common
Price—At par ($100 per share).
Underwriter—
16
June
30
Petroleums Ltd.
filed
loan
and
900,000 shares of common stock (par
Price—To be filed by amendment. Under-
for corporate
of oil and gas
-
Proceeds—To
purposes,
pay
bank
including developmenl
lands.
Pan
American Gold Ltd.,
Toronto, Canada
July 20, 1948 filed 1,983,295 shares of common stock (par
*1). Underwriters may be brokers.
Price—45 cents pei
share.
Proceeds
•effective April
Mainly for development. Statemeni
10, 1950.
—
Merrill
purposes.
Perlite
Aug.
10
Office—Parks
Lynch,
30,000
due
1955
shares
of
of 5V2% de¬
(in denominations of $500
common
stock
(no
The
at
Price—To be filed by amendment.
Proceeds—For
rate
Petroleum
1949, filed
Ltd., Toronto Canada
1,150,000 shares ($1 par) common
of which 1,000,000 on behalf of
company and 150,000 by
New York Co., Ltd.
Price—50 cents per share
Under¬
writers—S. G. Cranwell & Co., New York.
Proceeds—
'For administration expenses and
drilling.
26
Statemeni
1949.
Service Co.
filed
of
Colorado
bentures and dividend rate
bidders for bonds:
on
preferred stock. Probable
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., and Smith, Barney & Co.
(jointly); Lehman
Brothers; First Boston Corp.; Harris, Hall & Co.,
Inc.;
Kidder, Peabody & Co. Probable bidders for
preferred:
Glore, Forgan & Co. and W. C. Langley & Co.
(jointly);
Brothers;
First
Boston
and
Bosworth, Sullivan
Harris, Hall & Co., Inc.
Corp., Boettcher &
Co.
&
Co.; -Rutin, Loeb & Co. and
(jointly.) Proceeds—For con¬
struction. Temporarily
postponed. It was stated on Aug.
1 that
company plans to reduce new
financing to $10,000,000 preferred stock which may be
placed privately,
the debentures
probably being withdrawn.
Resort Airlines,
June 19 (letter of
Inc., Pinehurst, N. C.
notification) 13,547 shares of
capital stock. Price—At
—None.
new
to
share
stockholders
common
for
each
10
held.
shares
writer—Merrill
Lynch, Pierce, Fenner & Beane will offer
the unsubscribed
of
preferred
common
not
needed
shares
for
as
well
as
the
exchange and 30,225
shares which will be created by converting that many of
the old 5% shares brought in under the
exchange into
new preferred stock.
Any old preferred not exchanged
will
be
redeemed
amendment,
on
Oct.
along with
1.
Proceeds—To
Price—To
dividend
the
be
rate
on
filed
the
by
new
redeem
on
the unexchanged 5%
exchange, and toward the
in
bank
loans.
Offering—
Temporarily postponed until September.
Seneca
Oil
Co., Oklahoma City, Okla.
April 27 (letter of notification) 225,782 shares of class A
stock (par 500).
Price—$1.25 per share. Underwriter—
Genesee Valley Securities Co., Rochester, N. Y.
Proceeds
—To acquire properties and for working capital.
Simmel-Meservey Television
par
($1 per share).
Underwriter
(N.
Y.)
Telephone Corp.
June 29 filed 125,000 shares of
common stock
(par $10)
to be offered to present stockholders at rate of
one new
-share for each four held.
Price—To be filed by amend¬
ment.
Underwriter—The First Boston Corp., New York.
Proceeds—For general corporate
purposes, including con¬
struction and repayment of a loan.
Offering postponed.
F. Chase, Lindsey
Office—Dallas, Tex.
and
Hooper
(8/21-25)
Inc.
baugh & Co., New York.
Proceeds—To increase work¬
ing capital and repay loans from RFC and Croydon
Syndicate, Inc.
•
Unexcelled
Aug.
on
Chemical
Corp.
(letter of notification)
14
stock
to
be
basis of
offered
one
new
each five
for
shares of capital
52,097
stockholders
to
of
record
Aug.
21
shares held;
rights to
expire in 30 days. Unsubscribed shares to be offered to
employees and others.
Price—At par ($5 per share).
Underwriter—None. Proceeds—For expansion and work¬
Office—350 Fifth Avenue, New York, N. Y.
United States Plywood
Corp.
June 19 filed 60,000 shares of series
vertible preferred stock
Dillon &
man,
(par $100).
Co., New York.
B cumulative
con¬
Underwriter—East¬
Price—To
amendment along with dividend rate.
be
filed by
Proceeds—To in¬
working capital and for other corporate purposes,
including the erection of a new plant at Anderson, Calif.
crease
Temporarily postponed.
Utah
85,114 shares
Aug.
2
Power
filed
&
(10/9)
Light Co.
$8,000,000
first
bonds
mortgage
due
1980.
Underwriters—To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Union Secur¬
ities Corp. and Smith, Barney & Co.
(jointly); First Bos¬
ton Corp. and Blyth & Co., Inc.; Harriman Ripley & Co.,
Inc.; Kidder, Peabody & Co.; White, Weld & Co.; Salo¬
Bros.
mon
&
Hutzler.
Proceeds—For
construction
pro¬
gram.
Utah Power & Light Co.
(9/12)
Aug. 2 filed 166,604 shares of common stock
be offered to
basis of
one
share for each
new
(no par) to
stockholders of record Sept.
common
12 on
eight shares held. Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders: Blyth & Co., Inc.; Union Securities Corp.
and
Smith, Barney & Co. (jointly); Lehman Brothers;
Langley & Co. and Glore, Forgan & Co. (jointly);
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane (jointly).
Proceeds—For construction pro¬
Inc.
W. C.
notification) 150,000 shares of common
Price—$2 per share.
Underwriter—
& Gunther, Newark, N. J. Proceeds—To com¬
gram.
Productions,
June 29 (letter of
stock
(par $1).
plete films in progress and for general corporate pur¬
poses.
Office—321 So. Beverly Drive, Beverly Hills,
Calif.
Vanadium-Alloys Steel Co.
Aug. 1 (letter of notification) 3,000
stock
Co.
common stock
(par $5)
exchange for 545,610 shares of common
stock of Birmingham Electric Co. No underwriter. Ex¬
pected about Aug. 23.
be offered
Co., Atlanta, Ga.
are:
capital
Vieh Co., Columbus, Ohio
19,500 shares of common
share. Underwriter—The Ohio Co. Pro¬
buy the assets of Brodhead-Garrett Co. and
for working capital.
May 8
(letter of notification)
stock at $10 per
ceeds—To
June 23 filed 1,000,000 shares of common stock
(par $5).
Underwriters—To be determined by competitive bidding.
bidders
of
general working capital.
in
Southern
shares
(no par) to be offered employees. Price—$31 per
Underwriter—None. Proceeds—To be added to
share.
Morgan
Stanley & Co., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Blyth &
Co., Inc. and Bear, Stearns &
Co. (jointly); Lehman Brothers; Union Securities
Corp.
Virginia Electric & Power Co.
Aug.
(9/12)
first and refunding mortgage
1980.
Underwriter—To be deter¬
filed
9
$20,000,000
bonds, series H, due
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Union Securities Corp.; Kuhn,
and Equitable Securities Corp.
Loeb & Co.:
rities
(jointly); Harriman Rip¬
Proceeds—To purchase shares of subsid¬
iaries in order to assist them in
tion.
financing
new
construc¬
Temporarily postponed.
Southwest
Natural
Co., Shreveport, La.
June 26 (letter of notification) 13,500 shares of common
stock to be sold by Ronald M.
Craigmyle, at market
(about $7,37V2 per share) through Craigmyle, Pinney &
Co., New York City.
Standard Coil
Products
Co., Inc.
Aug. 11 filed 367,500 shares of
Price—To
be
Eberstadt &
filed
Co.
by
Inc.
common
amendment.
Proceeds—To
(8/28-9/1)
stock (par $1).
Underwriter—F.
three selling
stock¬
holders.
Standard
Oil shares for 15 Creole shares. Offer
expires
Purpose—To increase holdings of Creole stock
to 95% from present 93.12%. Statement effective
Aug. 2.
Sept. 22.
Sudore
Gold
Mines
Ltd., Toronto, Canada
June
6, 1949, filed 375,000 shares of common stock. Price
—$1 per share (U. S. funds). Underwriter—None. Pro¬
ceeds—Funds will
road
be applied to the purchase of equip¬
construction, exploration and development.
Radio Corp., N. Y. City (8/22)
135,000 shares of common stock (par $1)
Price—$5.50 per share. Underwriters—Sills, Fairman &
Harris; Straus & Blosser. Proceeds—To 15 selling stock¬
22
filed
holders.
22
filed
Corp., N. Y. City
t-tt,
capital.
man,
•
(8/22)
Fop additional plant facilities and for working
-!
|
Proceeds—To
Co., Inc., the selling stockholder.
Webb's City,
Aug.
Underwriter—Gold¬
Sachs & Co. and Lehman Brothers.
Continental Can
10
(par $10).
stock
common
Price—To be filed by amendment.
Inc., St. Petersburg, Fla.
$100,000 of 10-year 5%
offered in units of $100 each.
Under¬
(letter of notification)
debentures to
be
writer—None. Proceeds—For capital replacement. Office
Street, South, St. Petersburg, Fla.
Disinfecting Co.
July 25 (letter of notification) 3,000 shares of common
stock (par 50 cents). Price—At market (about $10 per
share). Underwriter—Coffin & Burr, Inc., New York.
Proceeds—To
selling stockholder.
Office—42-16 West
Street, Long Island City, N. Y.
•
West
Ohio
Telephone Co., Covington, Ohio
notification) 410 shares of 5% pre¬
to be offered in exchange for a
like amount of outstanding shares of 6% preferred stock
(par $100) of Stillwater Telephone & Telegraph Co.,
Covington, Ohio.
Underwriter—None.
Aug.
11
ferred
(letter of
stock
(par $100)
Franklin, N. C.
shares of capital
Western Carolina Telephone Co.,
June
22
stock to
(letter of
be
offered
notification)
to
Western
Feb.
28
filed
Price—At
at rate of one share
par
($50
B.
800,000
Cobalt
Mines,
share).
loans.
per
Proceeds—To pay bank
Uranium
Vancouver,
1,406
stockholders
for each two shares held.
100,000
shares of cumulative convertible
class. A stock. Price—At par ($10 per share).
Under¬
writers—Sills, Eaijrman & Harris; Straus & Blosser. Pro¬
ceeds
(9/7)
Aug. 15 filed 120,000 shares of
Underwriter—None.
Tele-Tone Radio
June
Expected this Fall.
Vulcan Detinning Co.
West
(New Jersey)
July 14 filed 293,333 shares of capital stock (par $25),
offered in exchange for 500,000 shares of
outstanding
capital stock of Creole Petroleum Corp. at rate of eight
June
•
—128 Ninth
Standard Oil Co.
ment,
White, Weld & Co.; Stone & Webster Secu¬
Corp.; Salomon Bros. & Hutzler; First Boston Corp.
loans and for construction pro¬
Proceeds—To pay bank
gram.
Gas
Tele-Tone
common
Proceeds—For working capital.
Rochester
one
offered
preferred 205,661 shares will be offered in
exchange for 186,965 shares of outstanding 5% preferred
stock, along with an unspecified cash payment. Under¬
•
$7,000,000 of convertible debentures, due
I960, and 100,000 shares of cumulative preferred stock
(par $100). Underwriters—To be determined
by com¬
petitive bidding, along with prices, interest rate on de¬
Lehman
of
be
(formerly Texmass
filed 300,000 shares of common stock (par $1).
Price—2.75
per
share.
Underwriter—Blair F. Clay-
ley & Co., Inc.
con¬
struction of pipe line and other
corporate purposes.
Public
St., N. W., Washington, D. C.
the
Probable
Pipe Line Co. (9/7)
Aug. 10 filed $40,000,000 of 20-year sinking fund deben¬
tures due 1970.
Underwriter—Morgan Stanley & Co.
June
will
common
the
Of
par).
Plantation
■affective June 27,
111.
expansion.
Oils
13
ing capital.
to
certificates, $400 each; for stock, $1 per
.Underwriter—Robert D. Bowers & Co., Denver.
Proceeds—For working capital.
Power
Chicago,
Beane,
Safeway Stores, Inc.
June 8 filed 321,000 shares of cumulative preferred stock
(par $100) and 257,064 shares of common stock (par $5).
Price—For
April 25,
&
July 28 filed 818,415 shares of
share
•
Fenner
Office—714 Fifth
nents.
Southern
Co., Denver, Colo.
(letter of notification) $150,000
and
Pierce,
for
and
Trustees—John
Transvision,
June
Met¬
Mines
benture certificates
■each)
Security
Electronics, Inc.,
Washington, D. C.
June 22 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
writer—None. Proceeds—To buy television set compo¬
ropolitan Airport, East St. Louis, 111.
•
Office—419
Proceeds—For benefit of Grace Y. Roper, a stockholder.
Koellmer
Parks Air Lines, Inc., East St.
Louis, III.
July 26 (letter of notification) 100,000 shares of common
stock (par $2).
Price—$3 per share. Underwriter—None.
Proceeds—For operating
rink.
Roper (George D.) Corp., Rockford, III.
Aug. 3 (letter of notification) 4,500 shares of common
stock (par $5).
Price—$22 per share.
Underwriter—
stock, make cash payments
prepayment of $20,000,000
(8/23-29)
$1-Canadian).
writer—Eastman, Dillon & Co.
roller
skating
Building, Phoenix, Ariz.
preferred.
Proceeds—To modernize plant.
Pacific
8,300 shares of common stock. Price—
share). Underwriter—None. Proceeds—
per
a
Royal Television &
Coal
Jane 9 filed 49,200 shares of
($1
by
July 24 filed voting trust certificates representing 25,500
shares of $5 cumulative preferred stock, class A (no par).
Bids—Expected to be invited around Sept. 7 and opened
on
Sept. 19.
erect
line
pipe
determined
be
Co.)
Aug.
par
(9/11)
bidders—Halsey,
Probable
Consolidated
ferred stock and
pre¬
Co.
mortgage
Stuart
& Co. Inc.; Stone & Webster Securiites Corp. and White,
Weld & Co. (jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. (jointly). Proceeds—To pay off $35,000,000
and
of
first
of
Underwriters—To
bidding.
—To retire (a)
10
Transmission
$40,000,000
1970.
Thursday, August 17, 1959
...
Ltd.,
C., Canada
shares of
common
capital stock
(par$l). Price—35 cents per share. Underwriter- None.
Proceeds—Exploration and development work. State¬
ment
effective
May 23.
Volume 172
Number 4934
..
The Commercial and Financial Chronicle
.
(657)
Prospective Offerings
Aetna
June 3 it
Finance
reported company may do some financing
Traditional
underwriter:
Goldman,
was
later
this
Sachs
&
Co.
Stanley & Co.; Lee Higginson Corp.; Harris, Hall & Co.
(Inc.); Drexel & Co.; Kuhn, Loeb & Co. and Salomon
Bros. & Hutzler (jointly); Harriman, Ripley &
Co., Inc.;
First Boston Corp.; Lehman
Brothers; Paine, Webber,
Jackson & Curtis; Kidder, Peabody & Co.
year.
Cleveland
Co.
Aug. 1 it
Alabama
May 12
Power
Co.
summer
bidders:
Morgan Stanley & Co.; Blyth & Co., Inc.; Union
Securities Corp. and Equitable Securities
Corp. (jointly):
First Boston Corp.; Drexel & Co. Proceeds will be used
for construction expenditures.
Investment Co. of
Illinois
May 24 announced company is planning to file shortly
registration statement covering 160,000 shares of prior
a
preferred stock (par $50).
ment.
Price—To be filed by amend¬
Underwriters—Glore, Forgan & Co.; Kidder, Pea-
body & Co., and Alex. Brown & Sons, and others.
ceeds—For additional working capital.
Anton
July 31 it
be
filed
Oil
Pro¬
rumored that
was
a
14
$234,000
it
Natural
Gas
announced
was
common
Co.
plans
company
issuance
of
stock and $450,000 of 18-year 4 V2% first
common
5-year bank loan of $250,000, to
new pipe line
project in south¬
eastern Missouri, authorized
by FPC, to cost $934,000.
a
finance construction of
Associated
15
it
intention
a
Telephone Co.,
Ltd.
announced
that the company's present
approximately $10,000,000 of addi¬
by selling, in the fall of the current year,
was
is to
raise
tional
funds
50,000
additional
shares
of
cumulative
preferred
stock
(par $20), a like amount of common stock (par $20) and
$8,000,000 of first mortgage bonds, series G.
Under¬
writers—For
preferred stock,
probably Paine, Webber,
Jackson & Curtis, Stone & Webster Securities Corp. and
Mitchum, Tully & Co. For the bonds, to be determined
by competitive bidding.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler
(jointly); Lehman Brothers; Paine,
Webber, Jackson & Curtis and Stone & Webster Secur¬
ities Corp. (jointly); White, Weld & Co. and
Kidder,
Peabody
& Co. (jointly); Equitable Securities Corp.
and Harris, Hall & Co. (Inc.) (jointly).
Proceeds—For
construction
program.
Associates Investment Co., South Bend, Ind.
July 26, it was announced stockholders will vote Aug.
29 on authorizing an issue of 200,000 shares of
preferred
stock.
May be placed privately.
Traditional under¬
writers: F. S. Moseley & Co.; Glore, Forgan & Co.; and
Merrill Lynch, Pierce, Fenner & Beane.
Canada
Aug. 15 it
pected of
(Dominion
was
Electric
reported company plans issuance this fall
was
$25,000,000 new bonds. Underwriters—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
Stuart & Co. Inc.; First Boston Corp.; Blyth & Co.,
White, Weld & Co.; Glore, Forgan & Co. and
W. C. Langley & Co. (jointly); Dillon, Read & Co. Inc.
sey,
Inc.;
construction
Commercial
March
30
Credit
redeem
000,000
of
issue
000,000
Stanley
Oct.
on
ex¬
4%
&
necessary
external
for
the
will
Co.
head
group.
1, next, one-half of $100,bonds
payable in U. S. dollars.
are
is
due
Oct.
1,
1960,
The remaining $50,-
redemption
will
from
come
treasury funds.
Central
Maine
Power
Co.
Power
Co.
at
competitive bidding prior to Oct.
1,
1950.
(jointly). The proceeds would be used to
ing notes of NEPSCO.
Central
States
Electric
March
1 it was announced that under an amended plan
reorganization it is proposed to issue to holders of all
stock and $14 principal amount of new 4V2%
a
package price of $18.
The
income de¬
common
stock,
except for approximately 4,600,000 shares held by Harri¬
son Williams and
associates, would be offered the right
to buy a unit of one new common share and $1.75 of new
income
debentures for
shares
common
debentures would
banking
be
a
package price of $2.25 for each
held.
The
issue
of
new
stock
and
Hemphill Noyes, Graham,
Parsons & Co., Shields & Co., Blair, Rollins & Co., Drexel
& Co. and Sterling Grace Co.
Central
May 4, it
Vermont
Co.
Service
Inc.;
Consolidated
Aug. 11 it
393
Corp.
Morgan
Stanley
&
Co.;
Lobster
Co.,
Inc.
stated that company
was
shares out of 47,000 shares authorized.
Delaware
Aug. 1 it
fall
Power
&
Light Co.
(9/27)
approximately
$12,000,000
to
$14,000,000
of
new
Corp.; Union Securities Corp.; Lehman Brothers; Morgan
Stanley & Co.; White, Weld & Co. and Shields & Co.
(jointly); W. C. Langley & Co. Expected Sept. 27."''
at
that the
comnany
plans the
competitive
bidding of $7,500,000 of new pre¬
(par $50), following sale of $12,000,000 of
first mortgage bonds due Aug. 1, 1980 (registration state¬
ferred
stock
for
ment
latter
Probable
Co.
and
Corp.;
issue
bidders:
Fenner
&
Peabody
Beane
May 23 it
the SEC
a
Eastern,
new
issue
will
and
of
and
sell
trust
Paso
September.
the Brockton
Edison
Co., Fall
bonds
$22,000,000 of first mortgage and
and $8,500,000 of preferred stock.
Electric
El Paso, Tex.
plans to refund $3,500,000 bank loans (authority for which is sought from
FPC) with permanent financing prior to March 31, 1951,
their maturity date.
The last issue of debentures was
placed privately last September with the John Hancock
Mutual Life Insurance Co. Previous financing underwrit¬
ten by White, Weld & Co.
Co.,
announced
was
company
May 26 it
reported that between 47,000 and 48,000
was
shares of this company's common stock may be offered
some
time in the near futuer through F. Eberstadt &
Co.
Emerson
May
Radio
&
Phonograph Corp.
Abrams,
use
unissued
company
may
(par $5)
acquire
to
the proceeds to be used to continue its
program.
Previous financing handled by
Kidder, Peabody & Co.
"
preferred stock, $100
par
value. Prob¬
able bidders for bonds: Halsey, Stuart & Co. Inc.; prob¬
able bidders for preferred: W. C. Langley & Co. and
Florida
31
Power
the
common
Corp.
company
in
the
form
was
of
said to be considering
bonds, preferred stock
new
and
stock,
construction
Florida
Power &
Hemphill, Noyes, Graham, Parsons & Co. (jointly).
June
Chenango & Unadilla Telephone Co.
July 17 company applied to New York P. S. Commission
for authority to issue $1,000,000 of mortgage bonds, $357,-
of
000 of preferred stock and $300,000 of common stock.
proximately $25,000,000
Chicago & Western Indiana RR.
stockholders
9
$4.50
shares
Light Co.
shares
approved creation of 50,000
cumulative
are
preferred ^tock (par $100). These
expected to be offered to finance part of
program which is expected to require ap¬
soon
construction
new
capital through 1952.
Jan. 31 reported company will probably issue in the near
future some bonds to refund the 4% non-callable con¬
solidated
first
Florida
to
nanced
through
Probable
bidders:
Halsey,.
-&
Co.
Inc.;
Morgan
the
the
by
purchase from
at
25
Broad
to noon
(EDT) on Aug. 23
$2,700,000 equipment trust
up
it
(8/23)
Company
of
certificates,
series K, to be dated Sept. 1, 1950, and
$180,000 each Sept. 1 from 1951 to 1965, inclu¬
mature
sive.
Probable
binders: Halse.y, Stuart & Co.
Inc.; Salo¬
Hutzler; Harris, Hall & Co. (Inc.); R. W„
Pressprich & Co.; Lee Higginson Corp.; Blair & Co., Ire,
Bros. &
mon
and L.
F. Rothschild &
La
Crosse
Co.
(jointly).
Telephone Co.
June 6, company announced that it has advised the Wis¬
consin P. S. Commission that it expects to sell
$1,000,0(/S
of long-term bonds and not less than
$600,000 additional',
stock.
common
Proceeds will be used to
repay $1,300,00£
bank
bonds
cation
pay
manent
financing which
securities include
Lorillard
April 4,
redeem
for
(P.)
may be done following effec¬
plan. Probable bidders for any
Smith, Barney & Co.
Co.
Herbert A.
Kent, President, said: "It may it*
financing" before Aug. 1, 1951 3©
$6,195,450 of 5% bonds due on that date antt
to do
necessary
additional
volume.
He
some
working capital to
added
that
meet
expanded
salen
plans to pay off iiii
by July, 1950. These loans now amount
Traditional underwriters: Lehman Bmj.
company
bank loans in full
to
$12,000,000.
Smith, Barney & Co.
Macy (R. H.) & Co.
May 8 it was reported that
of
ance
$10,000,000 of
new
is considering issu¬
securities, either debentures
company
preferred stock. Traditional underwriters
Brothers: Goldman, Sachs & Co.
or
Market
—
Lehmwc
Basket,
Los Angeles, Calif.
plans sale of 4,452 shares
of authorized but unissued, preferred
stock, series CP
(par $15) and an additional 30,000 shares of preferred,
stock, (par $15) to be authorized. Further details ncfa
May 25
company announced it
Meek Industries, Inc.,
Plymouth, Ind.
July 29 it was reported company plans sale of approxi¬
mately
250,000 shares of common stock, subject 'to
market
conditions. Underwriter—Otis
working capital.
—For
&
Co.
Proceeds
Michigan Bumper Corp., Grand Rapids, Mich.
July 20 stockholders voted to increase authorized com-*
stock
mon
(par $1) from 250,000 shares to 500,000 shares,
outstanding stock to have no pre¬
with holders of present
emptive rights.
Michigan Consolidated Gas Co.
Aug.
it was announced company contemplates per¬
financing will be consummated before maturity
7
manent
(Feb. 20, 1951) of proposed $25,000,000 bank loans which
will
include, during 1950, $20,000,000 of first mortgage
and $6,000,000 of common stock, and the
sale, in
1951,
of
writers
$10,000,000
about
for
Bonds—To
be
of
preferred
stock.
Under¬
determined
by
Stuart
competitive
bidding. Probable bidders: Halsey,
& Co. Inc.;
White, Weld & Co. and Lehman Brothers (jointly);
Smith, Barney & Co. and Blyth & Co., Inc. (jointly). Pro¬
off short-term
pay
construction costs.
sold to
bank loans and
The additional common
American Natural Gas
Co., parent.
for
new
stock will
bo
Expected this
Fall.
and
was
about
cost
tho
$5,100,000,- which
issuance
sale
of
withdrawn.
of
first
common
would
mortgage
stock.
be
fi¬
pipe-line
appli¬
Previous
Michigan-Wisconsin Pipe Line Co.
July 25 company received SEC authority to borrow nofi
more than $20,000,000 from banks.
A permanent financ¬
ing program provides for 'the elimination of these banis
loans prior to their maturity, July 1, 1951, and such pro¬
gram will include the issuance and sale of $12,000,000
additional bonds and $3,000,000 of additional common
stock.
Previous debt financing was placed privately.
MidSouth
July
31
it
company
mon
Gas
Co.
announced that this newly organized,
issue and sell publicly $2,800,000 of com¬
place privately with institutional investors
..was
may
stock and
$6,900,000
Georgia Natural Gas Co., Albany, Ga.
Aug. 2 filed new application with FPC for authority to
construct
a
335-mile pipeline system in Georgia and
mortgage bonds due July 1, 1952. Re¬
funding of the first and refunding mortgage 4Y4% bonds,
series A, due Sept. 1, 1962, is also said to be a possibility.
received
Traditional underwriter: F. Eberstadt & Co.
needed.
series and of
City Southern Ry.
be
ceeds—To
President, announced that
1,240,390 shares of capital
additional plant facilities if
Benjamin
29,
financing
new
will
bonds
Elliott Co.
July
a
Kansas
available.
Associates
Light Co. and Montaup Electric Co. and
and
collateral
July 25).
announced that under a plan filed with
company will be formed to acquire the
was
River Electric
on
Proceeds will be used for construction
Utilities
assets
of
SEC
& Co., Merrill Lynch, Pierce,
White, Weld & Co. (jointly);
Expected late in
Eastern
with
C.
Langley & Co.; Kuhn, Loeb &
Barney & Co. (jointly); First Boston
Smith,
Kidder,
filed
was
W.
announced that if offer to acquire Green
of
•
and
Duquesne Light Co.
July 27 it was announced
bonds due 1963 of Green Mountain by the issue and sale
series
Corp.
new
for cash of first mortgage bonds of
new
company said to plan sale of first mortgager
bonds to finance part of its
$3,200,000 construction pro¬
gram for 1950.
Probable underwriter: The First Boston
reported that company plans to issue this
was
Mountain Power Corp. becomes effective, it plans to re¬
fund outstanding $7,715,000 first and refunding 3%%
a
Co.
April 26
tiveness of consolidation
bonds to complete its 1950 financing program. Probable
bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.
and Salomon
Bros. & Hutzler
(jointly); First Boston
by
Public
Utilities
stock
Long Island Lighting Co.
May 18 it was reported company's construction program
in 1950 will cost $20,000,000 which is
currently being'
financed by up to $12,000,000 bank loans
pending per¬
•
stock
was
Southern
preferred
or
plans to offer addi¬
tional capital stock (no par) for subscription
by stock¬
holders. At April 30, 1950 there were outstanding 34,-
&
Boston Corp.
underwritten by Darien Corp. and
headed
group
financing will be necessary,
done through
additional common
financing.
Iowa
increased
If this is the case, moitt
he added.
This may te>
First
Stuart
sey,
July 19 it
Corp.
to accommodate
the system.
on
loans, due in September, 1951, and the remaining'
$300,000 will go to Central Telephone Co., parent, to re¬
temporary advances for construction. Probable un¬
derwriter: Paine, Webber Jackson & Curtis.
that $257,000,000 will be needed for the construction
pro¬
over the next four years. Probable bidders: Hal¬
gram
El
classes of 6% preferred stock for each old share the .right
to buy a unit consisting of eight shares of new common
bentures for
Consolidated Edison Co. of New York, Inc.
May 15, Ralph H. Tapscott, Chairman, said the company
will require approximately $90,000,000 of "new
money'
through the sale of securities. No permanent financing is
contemplated before this fall, however, and current ex¬
penditures are being financed by short-term loans, of
which $16,000,000 are now outstanding.
It is anticipated
outstand¬
pay
be raised
may
demands
power
for
approved creation of 500,000
preferred stock (par $100) of which
company plans to sell 250,000 shares. A group of under¬
writers, headed by Kidder, Peabody & Co. and The First
Boston Corp., are expected to offer the stock.
program.
Probable bidders: Blyth & Co., Inc., and Kidder, Peabody
& Co. (jointly); Coffin & Burr, Inc.; First Boston Corp.;
Harriman Ripley & Co., Inc. and Goldman, Sachs & Co.
This estimate
Street, New York, N. Y.
Co.
stockholders
Lehman Brothers.
July 24 New England Public Service Co. applied to the
SEC for authority to sell 260,000 shares of its holdings
(1,315,181 shares) of the common stock of Central Maine
split up
Aug. 16.
Houston Lighting & Power Co.
April 14, S. R. Bertron, President, estimated construction
expenditures for 1950 between $19,000,000 and $20,000,000..
Bids
program.
Hosiery Co.
announced that
was
be voted upon
Illuminating Co.
of
sale
that early registration
issue of $50,000,000 of 2%% bonds due 1975.
an
Proceeds—To
which
of)
announced
Underwriter—Morgan
a
Aug. 8 it
registration statement will
covering $10,500,000 of preferred and
mortgage bonds, plus
five
Cleveland
Corp., Fort Worth, Tex.
Associated
of
to be used for construction program. Probable
underwriter: Dillon, Read & Co. Inc. if negotiated sale.
are
shares of cumulative
June
•
ceeds
Proceeds—For
stock.
June
of
preferred stock, of which 495,011
shares of no par value are presently
available, stock¬
holders on April 25 having increased the authorized
amount to 750,000 shares from 500,000 shares.
The pro¬
•
American
issue
an
it
registration statement is»
expected to be filed shortly covering not less than
25%
and not exceeding 33%% of the stock held
by principal
stockholders following proposed 7y2-for-l stock
to
Illuminating Co.
reported that company this fall may issue
was
sell
and
reported to be considering issue in late
of about $10,000,000 preferred stock.
Probable
company
Electric
Holeproof
June 22
37
of
20-year
3%%
first
mortgage
bonds,
the*
proceeds to be used in connection with the acquisition
of the gas distribution properties of Arkansas Power Sr.
Light Co. Initially it is planned to sell $800,000 stock and
$1,500,000 of bonds.
Underwriter for Stock—Equitable
Securities Corp., T. J. Raney & Sons and Womeldorff Si
Lindsay.
Continued
on
pege
38
38
The Commercial and Financial Chronicle
(658)
Continued
from
planning issuance and sale
early in September of $10,005,000 additional equipment
trust certificates, series Z, to mature annually April 1,
1951 to April 1, 1965.
Probable bidders: Halsey, Stuart
& Co. Inc.; Harriman Ripley & Co., Inc. and Lehman
Brothers (jointly); Salomon Bros. & Hutzler.
July
Light Co.
Gas
Milwaukee
that the company's permanent
June 21 it was announced
financing program, expected to be consummated prio:
to October, 1950, will involve refinancing of $13,334,000
of first mortgage 41/2% bonds due 1967, $2,000,000 of 7%
preferred stock and bank loans (about $8,500,0C0) through
securities and common stock
97.7% of presently
bidders for bonds:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co., and Leh¬
man Brothers
(jointly); Kidder, Peabody & Co.; Harriman Ripley & Co.; Smith, Barney & Co., Kuhn, Loeb &
May 5 it
Supply Co. of Utah
Fuel
later this year, with probably some common stock to be
underwritten by Drexel & Co.
Bond financing would
be
competitive,
negotiated
and
oil operations. It will be financed, in part,
through public sale by the new unit of 1,000,000 shares of
capital stock (par $8). Financing plan submitted by First
Boston Corp. Expected this Fall.
Beane.
New England
April 24 it was estimated that about $37,000,000 new
financing will be required to oay construction costi
estimated at $40,000,000 for 1950 to 1952.
Present plam
are
to issue in late summer or early fall $10,000,000
shares of
stock.
preferred
Probable
(1) For bonds—Halsev. Stuart & Co., Inc.;
for bonds and preferred: Harriman Ripley & Co.
bidders:
(2)
First
& Co.;
Brothers; Kidder, Peabody
Lehman
Inc.;
Corp.; Merrill Lynch, Pierce, Fenner & Beane;
Boston
(3) for preferred:—W. C. Langley & Co.
New Orleans
Public
Service,
for each share
and
program.
May 24 it
Electric
State
& Gas
in part, cost of new construction estimated to total
$55,800,000 in the next three years.
Probable bidden
for bonds and preferred: Blyth & Co., Inc., and Smith,
Barney & Co. (jointly); First Boston Corp. and Glore,
Forgan & Co. (jointly); Harriman Ripley & Co. Inc.
Probable bidders for bonds only Halsey, Stuart & Co.
Inc.
Mohawk
Power
Corp.
Jan. 19 announced that construction program will neces¬
sitate in 1950 not more than $25,000,000 of additional debt
equity financing, including
or
short-term
bank
Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.; Kuhn,
Loeb & Co.
Power Co.
(Minn.)
July 29 it
was reported that the company will be in the
probably this fall with an offering of $17,500,000
preferred stock. Probable bidders: Lehman Broth¬
Riter:&
and
ers
Proceeds would
Pacific
Kuhn, Loeb & Co. and Lehman Brothers (jointly); First
Boston Corp.
>
Co.
(jointly);
be used for
Northwest
Smith,
new
Barney & Co.
construction.
July
a 2,175
pipeline system—from southern Texas to Washing¬
ton—at a cost of $174,186,602.
Negotiations for major
financing requirements are now in process of being
completed.
in near
certificates,
series T. Probable bidders: Halsey, Stuart & Co., Inc.;
Salomon Bros. & Hutzler; Harris, Hall & Co. (Inc.).
a
group
Light Co.
public distribution of these shares at earliest practical
&
be sometime in
on a
3^>-for-l basis, all
offered.
money
later
this
Aug. 2 it
an
was
or
stock
increase
be followed
has
9
and
a
C.
Allyn
in
par
group.
similar
amount
by
intention of
at this time.
and
•
Roosevelt
July 20
1951.
authorized
common
any
of the additional shares
San
was
Inc.,
Manchester,
to
reported to be negotiating with a
for a public stock offering of
issue
was
reported that the company's original plan
$8,000,000 and $10,000,000 of bonds
between
late in
September or early October may be changed to
preferred stock, depending upon market conditions. If
negotiated, Blyth & Co., Inc. may handle financing. If
competitive, probable bidders are: Blyth & Co., inc.;
Lehman Brothers and Bear, Stearns & Co. (jointly);
First Boston Corp.; White, Weld & Co. and Shields &
Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane;
Union Securities Corp.; Salomon-Bros. & Hutzler. Pro¬
ceeds would go toward construction program.
r
Co.
purpose
Traditional
of
under¬
con¬
shares.
was
was
Probable bidder?: A. G. Becker & Co. (Inc.),
Union Securities Corp. and Xadenburg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Kid¬
der, Peabody & Co.; F. Eberstadt & Co.; Allen & Co.;
new company to be formed by United States & Inter¬
national Securities Corp.; Dillon, Read & Co.; F. S. Moseiey & Co.; Riter & Co.
it,plans to finance and .permanently refund $2,200,00(Tof bank loans by the sale of
and
&
stock
common
Probable bidders for
Webster
bonds:
Securities
May
it
11
prior to
Oct.
1950.
31,
Halsey, Stuart & Co. Inc.;
Corp.
It
Traditional underwriters:
C. Langley
be spent
money
in 1950.
will
in
$34,000,000, of which $11,600,000 will
It is estimated that $6,000,000 of
required
be
Toronto
this
to
year,
be
new
raised
-
with
~ *
..
-
Co.
filed with SEC, to sell its
Southern
March 3 it
by
Co.
common
stock
as
to
which
an
pro¬
through a
Securities Corp.
banking group
and Harriman
United Gas Pipe
Line Co.
July 25 filed with FPC for authority to build 1,130 miles
of new lines in Texas, Louisiana and Mississippi at a
cost of about $110,000,000, including new facilities.
It is
probable that the bulk of this new capital will be raised
through the public sale of new securities.
Utah
Natural Gas Co.
June 5 it
mile
announced company plans to build a 325pipe line in Utah to cost approximately
Hearings will be held before the Utah
was
22-inch
$25,000,000.
P. S. Commission in August or
September, after
study
a
of the project.
Valley Gas Pipe Line Co., Inc., Houston, Tex;
sought FPC authorization to construct
$144,500,000 pipeline project to carry natural gas from
the
Gulf
Coast
Corp.
**
of
fields
in
Louisiana
is
pany
in
now
of completing
process
and
Com¬
negotiations for
its major financing requirements.
Victor
Aug.
1
it
electric
to
cost
Chemical
Works
announced
was
furnace
>
will
company
build
a
new
phosphate plant at Silver Bow, Mont.,
Financing
$5,000,000.
•
Warner-Hudnut,
July
20
change in
Warner
taken
&
Co., Inc.
be placed
may
privately.
Inc.
company's
through
F.
by
bonds.
Probable
no
William R.
action
was
It is planned
to file
a
registration with the
a
pation-wide
stock (par $1) to the pub¬
group
of underwriters headed
Eberstadt & Co., Inc.
Western 'Pacific
RR.
■hi
July 17 it
was
$22,000,000
reported company plans issuance and sale
mortgage
bonds. Probable
bidders:
Hal¬
Stuart &;Co. Inc.; Blyth & Co., Inc.; Lehman Bro¬
Co. (jointly); Union Securities
Corp. and Glore, Forgan & Co.
retire first mortgage
(jointly).
Proceeds—To
4% bonds and convertible income
4V2% bonds due 2014, and over $5,000,000 "new money."
Expected
about middle of
November.
Wilcox-Gay Corp.
bidders:
and Harris, Hall & Co.
(Inc.)
July 14 it was announced that in connection with pro¬
posed
acquisition
Radio &
ngw
company
riew
stock.
would-be used to refund $30,-
& Otis.
of
Garod
Radio
Corp.
and
Majestic
Television, Inc., Wilcox-Gay-Majestic Corp., the
(jointly); Halsey, Stuart & Co. Inc.; Blyth & Co., MC.;
000,000 3y4% bonds and for const;ruction costs.
from
but
covering; the sale of approximately 325,000 shares
of the proposed new common
lic
name
approved,
was
proposed recapitalization plan, due to market
on
Shields & Co.
Proceeds
off-shore
and
Texas to markets in Indiana, Ohio and Michigan.
Edison Co.
reported that company expects to issue
$55,000,000
Boston
The proposal
investors
Dominion
thers and Bear, Stearns &
holdings of 154,231.8 shares of
California
was
subway.
Ripley & Co., Inc.
of
-
15 United Corp. proposed, under its amended plan
Gas
(Ont.), Canada
institutional
headed
sey,
South Jersey Gas
Jersey
Union Securities Corp.;
& Co.
by
$50). Probable bidders include Lehman
Brothers.
June
the
United States of $15,000,000 debentures to provide funds
the sale of $3,000,000 of bonds and 60,000 shares of pre¬
ferred stock (par
in
July 25 the Board of Control authorized the sale in the
SEC
announced company plans to spend
was
the next four years
increase
an
stock to 1,000,000 shares from 500,000
understood that 125,000 shares may be
Traditional underwriter: F. Eberstadt & Co., New York.
June 2 company announced.
debentures
have approved
common
a
announced that the company's entire com¬
mon
stock issue (440,000 shares) was expected to be
registered with the SEC in the near future and offered
for sale to the highest bidder by the Office of Alien
May 4, it
First
stock for the
1950
June 27 company
Schering Corp.
The
common
raise
to
additional
vides for borrowing at an average interest rate of 2.84%.
The new debentures were placed privately last week
Conn.
Diego Gas & Electric Co.
July 31 it
South
from
sale of
in part
Water Power Co.
stockholders
4
for construction of Toronto's
-r
$150,000 of additional capital stock at $1 or $2
share. There are presently outstanding 1,381 shares
stock, which are closely held.
Aug. 25
stock
plans
company
common
exemption from competitive bidding is requested.
on
announced
was
authorized
The corporation
underwriters
two-for-one split-up, the;,company
issuing
Mills,
company
of
group
authorized
Traditional underwriters: Lehman Brothers
summer
&
the
Reynolds & Co.
this
a
increased
1,500,000 to 2,500,000 shares.
$1, to 1,200,000 shares, par-50 cents,
issue additional
Cruttenden
in
new
Co.
the
May
W.
being split-up
1,750,000 expected next month.
new
stockholders
no
part of which will be publicly
raising additional working capital.
writer:
are
stated that following approval
500,000 shares,
may
common
year
Packard-Bell
to
A.
Company also expects to raise $3,000,000 in
Registration of
of
October.
Co., Inc. and Bear, Stearns & Co. headed this
500,000 shares of
Tide
may
trust
on
Feb. 6, last, had informed him of their intention to make
The
company
equipment
South Carolina Electric & Gas Co.
purchasers who acquired company's 500,000 shares
may
of
conditions.
of common stock from American Power &
date, which
issue
an
Reynolds Metals Co.
Light Co.
April 13, Paul McKee, Presdient, disclosed that
a
it
25
$4,700,000 iri new money through
securities, the proceeds to finance
struction expenditures.
sold.
Stone
of 16
that
reported
was
sell
Sierra Pacific Power Co.
June 30 company sought FPC authority to build
Power &
it
31
future
Pipeline Corp.
mile
Pacific
Tampa Electric Co.
April
Reading Co.
Property.
market
new
Probable bidders: Halsey Stuart & Co.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
loans.
Probable bidders for bonds:
Northern States
Southwestern Public Service Co.
r{
17 stockholders approved-the issuance of $90,000,000 new bonds for the purpose of refunding $50,000000 31/8% bonds due 1965; $10,000,000 3V4% bonds due
1968; $15,000,000 3% bonds due 1970 and $15,000,000
of
pay,
authorized
SEC
Aug. 1 it was announced by Herbert L. Nichols, Chair¬
man, that the company expects to raise between $17,500,000 and $18,000,000 through the sale of securities
during the fiscal year beginning Sept. 1, 1950/ This may
include bonds to be placed privately and the balance
to be offered publicly as preferred and common stock
with Dillon,JRcad & Co. Inc. underwriting. The proceeds
are to pay for construction
costs.
*
per
Corp.
000,000 of bonds and $6,000,000 of new preferred stockin June, 1951, with an additional $10,000,000 of new
securities to be sold in 1.952, the proceeds to be used to
Niagara
1952.
April
reported company expects to sell $14,-
was
reported that this company, an affiliate
Co.
(New Jersey), is contemplating
Oil
about
^
New York
Power Co.
Utah
trustee of Washington Gas &
negotiations with "all interested
parties" for the sale of its common stock interest (62,910
shares) in Southern Utah Power Co. for not less than a
$550,000 base price, plus adjustments.
8
Electric Co. to undertake
Middle South Utilities,
held
owner
construction
ceeds—For
Southern
Public Service Electric & Gas Co.
stock from
of 906.671.823 shares of New
Orleans stock, proposes to purchase 152,320 of the 160,074 shares to be offered.
Price—$25 per share.
Pro¬
parent,
either
~
financing of about $50,000,000, part of which is expected
to be placed privately and the balance sold to the public.
Underwriter—May be Morgan Stanley & Co. Proceeds-^To be used to build new pippeTine, with construction to
begin early next year and completion scheduled for
Aug.
Inc.
issue
and sell 160,074 additional shares of common stock (no
par) to be offered to common stockholders at rate of
Inc.,
be
Pipe Line Co.
was
Standard
•
Aug. 2 company applied to SEC for authority to
0.168 share
would
bonds due 1972.
Power Co.
50,000
of
early
Mountain States Power Co.
May 17 the stockholders voted to increase the author¬
ized preferred stock (par $50) from 75,000 to 150,000
shares. There are presently outstanding 72,993 shares.
Probable underwriter: Merrill Lynch, Pierce, Fenner &
and
stock
preferred
competitive.
or
July 6, it
announced plans to create a new firm
its exploration and development of natural
and
bonds
Electric Co.
June
June 6 company
to take over
was
basis has
said that there will be additional financing
was
Plantation
gas
reported proposed financing on a perma¬
nent
been increased from $10,000,000 to $24,000,000 first mortgage bonds, although company may
decide to take this in two pieces, viz: $10,000,000 to $12,000,000 initially and the balance later on. On June 21
SEC approved temporary bank borrowings of up to $20,000,000 to mature July 1, 1951, the proceeds to be used
for
construction program
which is estimated to cost
Probable
bidders: Halsey,
$32,520,000 for 1950-1951.
Stuart & Co. Inc.; Blyth & Co., Inc. and Kidder, Peabody
& Co.
(jointly); First Boston Corp.
July 31 it
Co., Inc. (jointly).
Co. and Blyth &
Mountain
reported
company
Philadelphia
the issuance of new senior
(American Natural Gas Co. now owns
outstanding common stock). Probable
12
Thursday, August 17, 1950
.
Gas Co.
Southern Natural
Pennsylvania RR.
37
page
.
.
plans public offering of 500,000 shares of
Traditional
Underwriter—Gearhart, Kinnard
Proceeds—For working capital.
Number 4934
Volume 172
The Commercial and Financial Chronicle
.
..
(659)
before
things really start to pick
conditions
Our
With C. S. Ashmun Co.
and then, of course, if market
up
(Special
"right."
are
Reporter's
will
go
into
over
the
month, with several other
biggest
issues
is
roster
the
on
$40,000,000
Ashmun
power
The
issue
new
full tilt into
dullness
main
market
has
run
with
its usual mid-August
and
hung
likely to
re¬
"dead-center"
the balance of the current month,
say
investment bankers and others
engaged in such distributions.
But
there
thing
than
more
tomary
summer
volved
in
several
has
to
levels
their
the
interest
in
type suited
market
curtailed
their
Hampshire Electric
of
have their
yields and at
buyers
about
the
moment,
liking.
strated
offered by
bit too thin for
a
This
or
the Columbia Gas System's
$90,000,000 of 25-year debentures
were brought
to market.
large
pension fund
and
few of the smaller insurance
panies
took
of this
issue
of
102.308
3.87%.
sizable
down
at the
But
com¬
blocks
offering price
the
where
yield
was
of the big
none
a
com¬
Meanwhile
offering
27.
with
208
Ellis
Blunt
South La
&
Salle
the New York
of
Stock
mem¬
Mid¬
and
Exchanges.
He
was
previously with Dayton & Gernon.
Chronicle)
REEVES BROTHERS, inc.
Mass.—George
become
DIVIDEND NOTICES
connected
Stock
Pipe Line Co., subsid¬
iary of Standard Oil Co. (N. J.)
is
embarked
upon
TECHNICAL OIL FIELD SERVICES
raised
through
the
medium
Sears &
of
Securities
quarter
The Directors have
tember 15, 1950, to
and
Exchange
ran
to
up
in
stockholders of
that
the
Union Carbide
Secretary-Treasurer
With Waddell & Reed
Com¬
(Special to The Financial Chronicle)
BEVERLY
$2,200,000,000 of which approx.ir
mately half was for the account
W.
of
HILLS,
Cal.—Paul
UEC
vard.
public
utility
borrowers.
compared with
an
$2,450,000,000
in
quarter of
Hord
Reed,
This
is
now
with
8943
Inc.,
Wilshire
Waddell
&
Boule¬
A cash dividend of
Fifty cents
share on the outstanding
capital stock of this Corporation
(50(f)
over-all total of
the
sponsoring
little time
in
to
it
here. The
the
cut
find
its
the
down to
de¬
loose
and
level.
102% asked,
aban¬
slipped
101% and later
around
to
With
agreement
debentures
low of
a
recovered
up
group
issue
own
syndicate
doned
lost
moving to clean
situation
cided
syndicate
102%
prise
second
issues
quarter's
was
of the
for
equity market by
101.80
to
company,
was
chiefly in time and effort put
sustained
equity
rung
situation
further
Out
by
the
was
the
source
until
&
Co.,
609
of
of
for
the
Moreton
better
which
accounted
balance
As
in
the
utilities
of
of
Financial
Chronicle)
ANGELES, Cal.—Gail E.
has joined the staff of
(Special
to The
Financial
payable October 2, 1950, to holders
transfer
(Special
1
J.
ard
Chronicle)
Secretary
1950
July 26,
to The
Financial
Chronicle)
Buck
&
Co.,
8
Aug. 22
the date for the
as
open¬
ing of bids thereon.
Services,
Inc.,
Roanoke
Bldg.
He
was
formerly
with
Paine, Webber, Jackson & Curtis.
had
No
earlier
this
week
(Special
it
been
postponed
for
to The
but
given,
ascribed
action
market
it
to
indifference
of
recognition
of
the
institutional
buyers at the moment to liens of
Southern Natural
Financial
Gas Com-
s
pany,
payable September 13,
jj
to
stockholders of
I
ord
i
on
rec-
=
at the close of business
September 1, 1950.
!
H. D. McHENRY,
BRICCS & STRATTON
I
CORPORATION
Chronicle)
(Special
to Tile
Einai^jial Chronicle)
City.
Secretary.
DIVIDE ND
Minn. —Dana
&
cer
La
Inc., and
Street,
Midwest Stock
associated
members of
Reed,
Dated: August 17, 1950.
=
with
Inc., of Kansas
In the past he
CHICAGO, IU^t—Harry V. Flick
is with Caswell & Co., 120 South
Salle
is
of
was
an
Couper-Eckenbeck
offi¬
Board
Exchange.
was
Co.,
with John J. Seer-
ley & Co.
per
five
cent
has
declared
a
and an extra dividend of thirty(35c)
per share,
less 2.75 per
share
cents
privilege
Wisconsin
dividend
tax,
capital stock (without par value)
on
CANADIAN PACIFIC
of the
to
Corporation, payable September 15, 1950,
stockholders of record August 30,
1950.
L.
August
sequently low in yield.
Directors
of
quarterly dividend of twenty-five cents (25c)
the
the
this type, rated triple A, and con¬
15,
G.
REGNER,
BAILWAY COMPANY
Secretary.
Dividend Notice
1950
At
DIVIDEND NOTICE
meeting of
a
the
Directors held today a
Backlog Is Growing
The
backlog
offerings
two
potential
growing
is
additional
of
companies
Stock
American
pective issues in registration. But
it now looks as though it will be
around
the
middle
of
September
Cyanamid
Company
Board
per
Cumulative
1950,
of Directors of
declared
(87VW)
to
a
quarterly
share
on
Preferred
the
the
American
Cyanamid
dividend
of
outstanding
Company
eighty-seven and
shares
of
on
August
one-half
15,
cents
Company's 3V2%
Stock, Series A and Series B, payable October 2,
holders
of
such
stock
of
record
the
at
the
close
of
business
The
Board
of Directors of
1950, declared
1.
close of
on
August
15,
„
business
clared
■■
■■
September 5, 1950;
2.
A
I
September 28,
of the
Common
Stock
1950, to the holders
close of business
quarterly dividend of
mon
a
share
on
the Com-
Stock, payable August 31,
1950, to stockholders of record
of
share on the out¬
Company, payable
-
August 24, 1950.
G. W. THORP, JR.
of such stock of record at the
R. S. KYLE, Secretary.
Treasurer
August 11, 1950.
of
at
record
August 23,
3.00
1950.
earnings from railway op¬
ending
30th, though showing a sub¬
improvement over the
corresponding period of last year,
stantial
are
still
ing of
ful
that
achieved
year,
the
insufficient for
the pay¬
better
While hope¬
results may
be
in
last
any
dividend.
the
half
of
the
the Directors point out that
dividend
declared
today
is
attributable
.
per
the
September 5, 1950.
.
a
.
Dividend
■■
special dividend of twenty-five cents (25d)
shares
Common
today de-
12% cents
on
1
has
55
1950, to the holders of such stock of record at the
and
standing
must carry on
Company
Net
,
,
,
tors
on
payable in Canadian
2,
1950,
to
October
on
June
The Board of Direc-
■■
A quarterly dividend of seventy-five cents (75C) per share on the
outstanding shares of the Common Stock of the Company, payable
September 28,
CROSS
American Cyanamid
p.m.
per
Capital
erations for the six months
|| COMPANY, INC.
■■
Dividends
Shareholders
i: ENCAUSTIC TILING
■■
Common
funds
TILE
EE AMERICAN
of
respect of the year 1950
declared
was
WALL &
FLOOR
September 5, 1950.
RED
::::::::::
Preferred Dividend
The
1950,
Your
#E
Manufacturers of
cents
Ordinary
the
on
in
Board
dividend of
(fifty
cent
per
share)
new
steadily as
place pros¬
of
Stock
1950
i
The
was
observers
Eckenbeck
Waddell
indefinitely.
the
=
Common
TlMilflillllllllllillllliaiiiiiiililllllllllllllllllllllllllllllllMllir
C.
Caswell Co. Adds
announced that the operation
reason
§
the
=
MINNEAPOLIS,
However,
was
share has been declared
on
I
nuKcstSimnoNj
Newbury
With Waddell & Reed
sified
|
per
=
MINNEAPOLIS, Minn.—Georgs
plans
=
cents
I
P.
F. Doran is with Investors Diver¬
company
Birmingham, Alabama
Common Stock Dividend No. 46
=
A dividend of 57'/2
Mass.—Herbert
f
GAS
COMPANY
Street.
to
power
NATURAL
W. F. Colclough, Jr.
Bagley II is associated with Rich¬
issue $12,000,000 of new mortgage
bonds
and
had
tentatively
set
This
SOUTHERN
of
stock
5, 1950.
The
books will remain open.
September
record
lllllllimilfllllllllHIIIIIIIIIIIIIIIfllllfllllllltliltJMIIIIIIIIHII*
the Common
Both dividends
declared.
With Richard J. Buck
chief
With Inv. Diversified
date.
75$ per share
September 30, 1950, and a
Stock have been
are
Secretary
the Preferred Stock for the
dividend of 25<t per share on
members of the Los
Angeles Stock Exchange.
debt
the
were
on
of
dividend
quarterly
(1 J/2%)
Sixth Street,
equity offerings.
new
KENNETH H. HANNAN,
178
$230,-
of
case
September 1,
No. 168
Common Dividend
Quincy Cass Associates, 523 West
com¬
around
about
Preferred Dividend No.
quarter ending
to The
BOSTON,
Light Co. to
later
a
Breen
Quincy Cass Staff
LOS
deci¬
forego its projected financing op¬
eration
total
a
Company
A
Joins
of
$375,000,000 and preferred- shares
issues,
marketwise
emphasized
sion of the Duquesne
H.
corpora¬
outpourings in
up
$600,000,000
stocks
mon
000,000.
Waiting Market
F.
(Special
The
for
into preparation for the deal.
The
Cal.—Richard
South Grand Avenue.
use
retirement
or
the close of business
1950.
ANGELES,
of
payable October
2, 1950 to stockholders of record at
W. Denner has been added to the
staff
debts.
than
of
the
loss
in
LOS
\
the
aggregate
expansion
refinancing
dicate
price
Bank Note
com¬
of
tions seeking new funds or money
period
any
to
bulk
security
new
decided
a
American
bid
Once freed the issue
a
the
standing at $1.6 billion. But there
moved rapidly, and since the syn¬
paid
continued
far
per
has been declared
F. H. Breen Adds
1949.
by
CARBON CORPORATION
AND
June
total of about
a
August 11, 1950.
WILLIAM A. MILLER
disclose
financing
J. E. REEVES, Treasurer
a quar¬
record August 23, 1950.
Record
tabulations
declared
Company will not be
closed.
terly dividend of 60 cents and an
extra dividend of 10 cents per share
on the common stock, payable Sep¬
mem¬
Stock Exchanges.
Second Quarter
corporate
books of the
bers of the New York and Boston
bank loans.
mission
Co., 53 State Street,
1950. The transfer
September 5,
coNPtm
Mass. —Donald
H.
is connected with Draper,
Foster
1950, to stockholders
2,
of record at the close of business
Dividend Notice
BOSTON,
ments, with $40,000,000 to be Of¬
publicly and the balance
per
payable
declared,
has been
October
LANE-WELLS
(Special to The Financial Chronicle)
fered
quarterly dividend of 25c
share
Exchange.
Draper, Sears Adds
$52,000,000
a
undertaking by way
negotiated banking
arrange¬
money
NOTICE
DIVIDEND
A
Main
Boston
August 15, 1950.
Simmons,
Street,
Plantation
Debt
The
the
has
GUS MRKVICKA, Treasurer,
New York, N. Y„
Lloyd D. Fernald & Co., Inc.,
Street, members of the
1387
bids
for
Mirick
with
a dividend of seventy-five
(75c) per share was declared on the
Cap-.tal Stock of Newmont Mining Corporation,
payable September 14, 1950 to stockholders of
CHICAGO, 111.—David J. Burke
is
west
Lloyd D. Fernald
SPRINGFIELD,
L.
&
level.
let
Tower.
(Special to The Financial Chronicle)
panies appeared interested at that
the
Rand
(Special to The Financial
of
Power
around
when
One
Joins
bids
$3,800,000
an
back
so
Gernon,
Dividend No. 88
August 15, 1950,
cents
(Special to The Financial Chronicle)
bers
com¬
may open
for
Delaware
Sept.
&
Corporation
G.
Co., Inc., 120 South La
wes
previously with Paine,
Webber, Jackson & Curtis.
demon¬
was
fortnight
a
the
return
quality liens is
their
own
He
of 30-year
Light Co. is preparing
of
$12,000,000
bonds
new
needs.
19
A.
record at the close of business
August 25, 1950.
Mihh. — Rich¬
joined the staff of
ard L. Read has
Sept. 12. New
on
of
On
MINNEAPOLIS,
contemplates
regarded set for
petitive bidding
of
These
ideas
which
while
high-grades
to
now
Sept.
buying
ex¬
Newmont Mining
Hey-
Joins Blunt Ellis Simmons
(Special to The Financial Chronicle)
Virginia Electric
$20,000,000
bonds
institutional
drastically
of
about
apparently
which
at
the sale
Co.
in¬
back
seasoned
Power
the
of
the
have
cus¬
at
rush
weeks
buyers
the
days"
are
added to the staff
Becker &
First Boston Corp.
Dayton
Close behind is
bonds
some¬
situation
The
carried
just
"dog
the
moment.
to be
appears
Bids here
been
L.
John W. Stodder have
and
Joins Dayton & Gernon
11 next.
&
Company, First National
He was formerly
CHICAGO,'111.—John
mann
DIVIDEND NOTICES
to The Financial Chronicle)
Salle Street.
first
new
pected to be opened around Sept.
for
seems
on
with C. S.
forward
of
Co., recently placed
in registration.
(Special
Soo Line Bldg.
mortgage bonds for Tennessee Gas
Transmission
A. G. Becker Adds
Chronicle)
I. Booker is associated
new
companies also contemplating flo¬
tations at that time. One of the
Report
Financial
MINNEAPOLIS, Minn.—Harton
Duquesne Light's offering prob¬
ably
to The
39
solely
to
the
Com¬
pany's income from other sources.
By order of the Board.
FREDERICK BRAMLEY,
Secretary.
Montreal, August 14, 1950.
Financial Chronicle
The Commercial and
'to
.
.
Thursday, August 17, 1950
.
(660)
financing
ness
BUSINESS BUZZ
also
is
He
aids.
Committee¬
National
Democratic
from Oklahoma.
man
The dropping of Harley Hise as
Washington
Behind-the-Scene Interpretations
from the Nation's
to represent an
inevitable sacrifice
management
to the charges of bad
against the RFC, developed in the
And You
Capital
is believed
the RFC
Chairman of
•
•
hearings
Senate subcommittee
conducted
Senator J. William
by
Fulbright (D., Ark.).
(This column is intended to re¬
WASHINGTON, D. C.
which has a good
mysteries
the
One of
—
Congressmen puzzled
many
is just
why some one in the Administra¬
tion attempted to "slip into" the
provision which
possibility that
President could regulate any
all kinds of credit, if this pro¬
bill
controls
the
and
a
the serious
raises
vision stood.
original draft of the con¬
In the
trols bill
as
it was sent down from
President
empowered to regulate and
control consumer and real estate
credit.
In a subsequent revision
an entirely new section appeared
(Sec. 3 of Title IV of the House
Bill and Sec. 2 of Title VI of the
Senate Bill)
which broadly de¬
fined "any credit."
It raises the
presumption
that
perhaps the
complete regulation and control
of "any credit" is an objective of
the
House,
White
the
was
Administration.
the
credit,
stitutional
but
not
pri¬
a
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)
between
transaction
loan
vate
two persons.
authorita¬
hand,
other
the
On
interpretations
that the section specifically
committee
tive
were
With John
designed to vest in the Presi¬
was
authority
dent
When
credit.
(Special
to control ALL
Rep. John Kunkel
Wisconsin
social planners have
to reach for directly
their boldest ambitions.
the
among
dared
xrever
m
Senate
bills there is one section of the
credit title which defines "con¬
sumer credit" and another which
defines "real estate credit."
The
title starts out
with a general
trying to do here is to attack
this
attack
(Special
general at the credit levels, both
general credit as well as real es¬
tate and consumer credit."
is
attention
the
in
supporter on the committee,
told the House that if the Wolcott
to
were
the
vest
President
in the
credit,
stated
power
all
control
to
should
that
been
have
Wednesday of last week and in the
until last week-end, was
Senate
that the new
definition"
dent
put
"depen¬
the lawyers
section is
as
a
In other words, it rein¬
and supported the general
it.
forced
the
of
authority
President
ex¬
pressed in the opening clause to
regulate and control consumer and
credit. Under this inter¬
pretation the new section is not a
broad new category of power, but
mortgage
amplification
an
and
consumer
over
the power
real estate
of
the statement by
In the face of
tended
control
to
House
On
Wolcott
the
committee
the
in
whole.
in¬
was
credit, the
any
adopted
amendment
the
it
that
Buchanan
Mr.
only official confirmation
of this limited interpretation of
the otherwise broad language was
contained in one paragraph of the
The
Banking
Senate
Committee's re¬
port on the bill.
This paragraph
indicated that the broader lan¬
adopted so as to close
any possible loophole in the ap¬
plication of controls to consumer
guage
was
and real estate
One
House
of
roll
separate
a
ficially
Committee
source
expressed
Chairman Spence said in
interview that he thought
section
was
meant
to
the
empower
exercise control
over any credit. Mr. Spence add¬
ed, however, that the President
had assured him he was not con¬
cerned with extending the scope
of credit control beyond consumer
the
tion
President
and real
ment, he
to
amend¬
said, would cover any in¬
estate credit. The
in
Record,
action
House
as
Joins
ST.
Sons,
Exchanges.
Wolcott
the
sumer
follows:
yeas
except
credit
all
of
objective
con¬
"E just worked out a
wiithen our
level
the
in
be
to
security
of
which
credit is going into security
prices,
bank
buying.
is
This
present, it
to
extent
the
but
excessive
not
at
is
also
tion
this
The
the
amendment
committees
did
not
write
it
denied that it had written,
Board
considered,
had anything to do
or
And in
this section.
with
from.
came
The Federal Reserve
themselves.
confidential
so
mystery as
Administra¬
some
within
where
advocating
Coommittee
Economic
and
its not
to the Joint
memo
monetary
means
over
specific controls, it declared that
controls
over
loans
to
business
not suitable.
were
C
feature of the
One
serve
Federal Re¬
In
Mo.
Olive Street,
721
of
U.
S
—
a m u e
1
members of the
in Canada were said to
premature at this
program
be
decidedly
So far there are said to be
plans in concrete form for the
purchase of only some $25 million
to
gnorK
mil1ion of Ca^ad'an
$30
So
long
is
jjc00cu
wiicie
a.uy
ctt
presently-revealed
large-scale buying
in-cU'
programs,
not
in
is
Canada
expected.
If the
country
tnen this situation is likely
change overnight.
to
fact
it that
to
saw
dollar
exchange
lack
U.
of
S.
hampered
never
equivalent of Lendthe U. S. bought so
Canada that the Do¬
the
gram,
In fact,
Lease.
heavily
in
minion
closed
handsome
U.
the
S.
with
war
she
reaching of another
Hyde Park Agreement, as
prompt
soon
as
Dominion
the
pand its military
ly.
The
be
more
must
program
ex¬
sharp¬
agreement will also
pervasive than its World
new
is
is
new
that
the
Do¬
itary effort
randum to the Congressional Joint
Economic Committee was its re¬
opening of the old fight between
and the Board on the
of
S.
will
more
effort. In
fight with
military
closely into the
particular Canada
many
U. S.
equipment,
items
such
as
P.
of
procurement
with
financing
aid
it
program
pnay
M. S. WlEN & Co.
relief
tax
easier
more
business
if
that
credit;
granted
were
far
was
small
to
40
In
Teletype N. Y. 1-1397
es¬
than
For
relief
tax
there would
be
Large Appreciation
no
WE
Gunderson the
place of Mr.
Walter
as
a
GOP
Presi¬
dent of the Continental Bank
Trust
Company,
Cosgriff
same
loan
Salt
Lake
testified
committee
in
title
insurance
of
the
of
A
City.
in
the
program,
and
sugary
Senator
of
William
the
New
Benton
fast
-
gr
owing
a
review of the Cement
Shawnee
and
said by an
be
W.
Elmer
of
banks
in
Seminole, Okla., is
president
Harber,
to
nominee,
an
Oklahoma Congressman
advocate
of
small
Indus¬
try available on request.
Selling about
of Connecticut.
Another
Southern
Analysis of this Company and
small
drew
commendation
-
of cement
leading producer
California.
the
'
business
STOCK
CLASS B (common)
and
before
favor
Potential
SUGGEST
RIVERSIDE CEMENT CO.
mem¬
Cosgriff,
E.
HA. 2-8780
Exchange PI., N. Y. 5
for easier credit.
need
1919
ESTABLISHED
Truman,
sential
Mr.
Scophony-Baird Ltd.
be
kicked
off the
board Harvey J. Gunderson, who
was
bold enough to tell the Sen¬
ate
committee
in
open
hearing
Mr.
that
Cinema Television B
business
for the duration of the war
is not forgotten by him.
gone
uui
small
his
Corp. of America
has
with his selec¬
directorate of the
new
that
Corp.
Trad Television
Norwalk Tire & Rubber
Truman
President
is
Associates,
Television Equipment
*
indicated
tion of the
Minneapolis
Video
*
t-
What
Minn.—Milton
U. S. Finishing
a
tire aircraft.
clearly
Chronicle)
The Financial
Reiersgord and Emil A. Voelz
are
wide
range of Canadian goods, such as
trucks, airframes, and perhaps en¬
S.
to
MINNEAPOLIS,
Thus, if the war becomes total
is likely to
be extensive
U.
Minneapolis Assoc.
(Special
there
minion will necessarily tie its mil¬
U.
With
Rand Tower.
Dealish
War II counterpart.
prices
same
if purchased
cost
President named
There is believed to be in store
kind of
the
near
would
U. S.
in the
ber,
the
can
or
they
a
dollar account.
the
of the items upon
specialize, making
some
at
RFC
effort spreads, how¬
war
equipment,
S.
Canadians will have to sell to this
S. war effort
the U.
au
whole
buy
to
order
classes
them
C
Reports that the U. S is all set
to conduct a huge defense-buying
What
Board "confidential" memo¬
tanks.
as
si:
*
*
budget to keep us
budget!"
which
stated.
was
the Dominion's "Mutual Aid" pro¬
There
to
Financial Chronicle)
LOUIS,
Midwest Stock Exchange.
either the Canadian war effort or
and real estate."
Morfeld, Moss
to The
Ginsberg has been added to the
staff of Morfeld, Moss & Hartnett,
summary,
to 224 nays,
amendment to ban
"Rejected 173
control
its
broad
the
of
$8.25
LERNER &
Investment
CO.
Securit.es
10 Post Office Square, Boston
Tel.
HUbbard
„
Mass.
2-1990
busi-
the Treasury
subject
credit.
the opin¬
ion that this section, if enacted,
would not empower the President
to control business credit, but of¬
unofficially
an
sional
fiscal
credit.
Stock
(Special
stage.
honestly and clearly."
until
House
&
tion
During the
last war, the U. S. and Canada
joined in the "Hyde Park Agree¬
ment"
whereby this country in
which got no
Edwards
G.
A.
North
west
York, another ardent Administra¬
ever,
amendment,
Chronicle)
Financial
Eighth Street, mem¬
bers of the New York and Mid¬
for
this amendment by reporting the
prise
to The
LOUIS, Mo.—Rex W. Ross
with
409
Multer of New-
Abraham
Rep.
ST.
further nailed down the presump¬
new
Wells
at
Section,
this
contain
Toen¬
West
With Edwards & Sons
the top level and to
the problem of control in
problem
call, however, the Wolcott amend¬
ment was killed, and the Congres¬
bills
135
are
authority to permit the President
to control and regulate consumer
and real estate credit.
Now both
defining "any credit."
One interpretation of this sur¬
Co.,
become
A.
Street.
what
Chairman,
we
and
House
the
both
In
has
John
with
&
nessen
committee, stated:
naturally puz¬ amendment striking out this sec¬
zled, because if the President is tion prevailed, it would take away
"the primary powers" sought by
;*eeking the power to control "any
credit" then
it is far different the President.
from vesting him with power only
"This was an entirely dishonest
to limit and curb the extension of
course
of action," later charged
credit for consumer purchase of Rep. Albert Cole
(R., Kans.), a
durable goods at retail, or mort¬
member of the committee. "If the
gage
credit for the purchase of intention were merely to make
homes.
With control over "any sure that there were to be no
credit," which means, of course, loopholes
in the regulation of
all
credit, the President would consumer and real estate credit,
have
a
potent weapon for the that should have been, and easily
complete
management
of
the could have been, made clear. On
economy. It is a power which the
the other hand,
if the intention
left-wingers
Chronicle)
Company,
associated
Congressmen are
Administra tion
Toennessen
A.
Financial
MILWAUKEE, Wis.—Jerome H.
Dahlman, for many years with
Robert W. Baird & Co. and the
(R., Pa.) raised before the House
this criticism, Rep. Frank Buchan¬
an of Pennsylvania, a
strong Ad¬
ministration
supporter
on
the
"Mr.
to The
rates.
short-term
of
Board
The
indicated
that
short-term
see
it
very
would
interest
plainly
to
HAnover
2-0050
Teletype—NY 1-971
like
government
rates
again argued that even
though the Treasury would nomi¬
Firm Trading Markets
rise, and
nally budget more for interest on
the debt, the net loss to the Treas¬
of
FOREIGN SECURITIES
would be small because much
the additional interest receipts
taxpayers would
All
Issues
be picked up
boost
FOREIGN
s?s
margin require¬
ments beyond the present 50% is
reported not to be in sight. The
Any
SECURITIES
SPECIALISTS
50 Broad Street
Hill, Thompson & Co., Inc.
Trading Department
in
Reserve Board interest is said not
Development
PARL MARKS & no. INC.
by the income tax.
sfc
Placer
Tracerlab, Inc.
ury
sis
Jack 6* Heintz
National Company
'
of
Empire State Oil
New York 4, N. Y.
70 WALL STREET,
Tet.
WHitehall
N. Y. 5
4-4540
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